SEATTLE STARBUCKS CORP SAID FISCAL FIRSTQUARTER SALES JUMPED 71 TO 66 MILLION FROM 386 MILLION A YEAR AGO THE COFFEE PURVEYOR SAID SALES AT STORES OPEN AT LEAST A YEAR GREW 10 FOR THE PERIOD ENDED JAN 2 9401070164 940107 US SHOE CORP'S SALES CINCINNATI US SHOE CORP SAID SAMESTORE SALES DECLINED 5 FOR THE FIVE WEEKS ENDED JAN 1 FROM THE YEARAGO PERIOD TOTAL SALES FELL 5 TO 2685 MILLION FROM 2825 MILLION IN THE YEARAGO PERIOD FOR THE COMPANY'S WOMEN'S APPAREL OPTICAL AND FOOTWEAR RETAILING OPERATIONS SAMESTORE SALES FOR ITS WOMEN'S APPAREL GROUP FELL 2 WHICH THE COMPANY ATTRIBUTED TO SOFTNESS IN THE TWO WEEKS PRECEDING CHRISTMAS AND A VERY PROMOTIONAL RETAIL ENVIRONMENT SAMESTORE SALES AT THE COMPANY'S LENSCRAFTERS OPTICAL UNIT ROSE 4 WHILE THOSE OF THE FOOTWEAR RETAILING GROUP ROSE 1 FOR THE 11 MONTHS ENDED JAN 1 TOTAL RETAIL SALES DECREASED 2 TO 1886 MILLION FROM THE YEARAGO PERIOD WHILE COMPARABLE STORES SALES FOR THE 11MONTH PERIOD INCREASED 11 TOTAL NUMBER OF STORES OPEN WAS 2278 COMPARED WITH 2468 LAST YEAR A DECLINE OF 8 9401070163 940107 CONTINENTAL AIR TRAFFIC FALLS HOUSTON CONTINENTAL AIRLINES SAID ITS DECEMBER TRAFFIC FELL 58 TO 3305202000 REVENUE PASSENGER MILES FROM 3509027000 A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE AIRLINE SAID ITS LOAD FACTOR OR THE PERCENTAGE OF SEATS FILLED ROSE TO 62 FROM 614 FOR THE FULL YEAR 1993 CONTINENTAL SAID TRAFFIC FELL 17 TO 42324180000 REVENUE PASSENGER MILES FROM 43071928000 IN 1992 THE LOAD FACTOR FELL TO 632 FROM 635 9401070162 940107 QUARTERLY MUTUAL FUNDS REVIEW INDIA FUND LAUNCHED BY MORGAN STANLEY NEW DELHI MORGAN STANLEY GROUP INC LAUNCHED A THREEBILLION RUPEE 968 MILLION INDIAN INVESTMENT FUND ON SCHEDULE THIS WEEK AFTER HEADING OFF A COURT CHALLENGE IN INDIA THE FUND IS THE LARGEST OF THREE PRIVATE MUTUAL FUNDS IN THE INDIAN MARKET IT ALSO IS THE FIRST FROM A 100OWNED SUBSIDIARY OF A FOREIGN FINANCIAL INSTITUTION THE NEW MORGAN STANLEY GROWTH FUND EXPECTS TO CLOSE TOMORROW BECAUSE OF STRONG DEMAND IT IS EXPECTED TO BE LISTED ON FIVE INDIAN STOCK EXCHANGES INCLUDING BOMBAY THE GOVERNMENT OPENED THE ASSETMANAGEMENT AND MUTUALFUND BUSINESS TO PRIVATE COMPANIES LAST YEAR AND SEVERAL FUNDS HAVE BEEN APPROVED BY THE SECURITIES AND EXCHANGE BOARD OF INDIA OR SEBI LATE LAST MONTH A LOCAL DELHI COURT ORDERED A STAY OF THE MORGAN STANLEY ISSUE BUT LAWYERS QUICKLY WON AN ORDER FROM THE SUPREME COURT OF INDIA ALLOWING THE ISSUE TO PROCEED ONE PETITION HAD ARGUED THAT BECAUSE MORGAN STANLEY'S DIRECTORS WERE FOREIGNERS THE FORTUNES OF INDIAN INVESTORS WOULD BE AT THE MERCY OF FOREIGN NATIONALS WHO CANNOT BE EASILY HELD LIABLE AND RESPONSIBLE UNDER INDIAN LAWS 9401070161 940107 QUARTERLY MUTUAL FUNDS REVIEW ROBERT LEO TAKES SALES POST AT MFS NEW YORK MUTUALFUND MARKETING EXECUTIVE ROBERT LEO IS LEAVING SMITH BARNEY SHEARSON FOR MASSACHUSETTS FINANCIAL SERVICES BOSTON MFS IS ONE OF THE OLDEST MUTUALFUND COMPANIES IN THE US BUT IN RECENT YEARS IT HASN'T GROWN AT THE RATE OF MANY OF ITS COMPETITORS MFS WHICH HAS TURNED OVER ITS TOP MANAGEMENT IN RECENT YEARS IS TRYING TO BEEF UP ITS SALES AND MR LEO WOULD BECOME PART OF THAT EFFORT MR LEO 49 YEARS OLD WILL BE DIRECTOR OF BROKERDEALER SALES AT MFS BEGINNING JAN 17 HIS GOAL IS TO BOOST THE AMOUNT OF MFS FUNDS SOLD THROUGH BROKERS HE HAD A SIMILAR TITLE AT SMITH BARNEY SHEARSON MR LEO'S DEPARTURE COMES AT A TIME WHEN SMITH BARNEY SHEARSON IS AGGRESSIVELY PARING OPERATIONS FOLLOWING ITS AUGUST MERGER WITH PRIMERICA CORP NOW TRAVELERS INC MFS A SUBSIDIARY OF SUN LIFE ASSURANCE CO OF CANADA MANAGES 35 BILLION 9401070160 940107 SEGA ENTERPRISES PLANS TO SEND VIDEO GAMES BY SATELLITE CABLE TV SPECIAL TO THE WALL STREET JOURNAL TOKYO SEGA ENTERPRISES LTD SAID IT PLANS TO BEAM VIDEO GAMES INTO JAPANESE HOMES VIA BROADCAST SATELLITE AND CABLE TELEVISION IN THE LATTER HALF OF THIS DECADE SEGA ALONG WITH SOFTWARE MAKERS CAPCOM CO KONAMI CORP AND TAITO CORP AND PUBLIC TELEVISION ENTITY JAPAN BROADCASTING CORP KNOWN AS NHK HAS SET UP AN ENTERTAINMENT TASK FORCE AND IS AWAITING CHANGES IN JAPANESE BROADCAST REGULATIONS THAT WOULD MAKE SUCH GAMEPLAYING POSSIBLE THE IDEA IS TO OFFER CONSUMERS ACCESS TO A HOST OF SOFTWARE THROUGH SATELLITE BROADCASTS OR CABLETV HOOKUP POSSIBILITIES INCLUDE ONLINE GAME COMPETITIONS BETWEEN USERS IN APRIL SEGA FORMED A VENTURE WITH TIME WARNER INC'S TIME WARNER ENTERTAINMENT AND TELECOMMUNICATIONS INC BOTH OF THE US TO PIPE VIDEO GAMES INTO US HOMES BY WAY OF CABLE TV SEGA'S PLANS INCLUDE USING THE BS4 BROADCAST SATELLITE TO BE LAUNCHED IN 1997 A COMPANY SPOKESWOMAN SAID THE ENTERTAINMENT TASK FORCE IS LOOKING INTO SUCH SPECIFICS AS HOW TO CHARGE FOR THE SATELLITE GAMES SHE SAID RIVAL NINTENDO CO HAS ALREADY ANNOUNCED SIMILAR PLANS FOR SATELLITE GAMES MEANTIME SEGA SAID IT WILL LAUNCH IN THE US THIS MARCH A VIDEOGAME SYSTEM WITH A DETACHABLE CDROM PLAYER THAT ALSO WORKS AS A PORTABLE PLAYER FOR MUSIC CDS THE GENESIS CDX MULTIMEDIA CDROM ENTERTAINMENT SYSTEM WHICH COMBINES THE FUNCTIONS OF THE COMPANY'S POPULAR GENESIS GAME SYSTEM AND ITS OPTIONAL SEGA CD ATTACHMENT WILL SELL FOR 39999 SEGA SAID IN ADDITION TO THE HARDWARE SIX CDROM SOFTWARE TITLES ARE TO BE INCLUDED THE GENESIS CDX WILL RUN BOTH GAME CARTRIDGES AND CDROMS IT SAID THE SEGA SPOKESWOMAN SAID THE COMPANY EXPECTS TO INTRODUCE THE GENESIS CDX IN EUROPE IN MARCH AS WELL ALTHOUGH IT HASN'T COMPLETED PLANS SEGA HASN'T DECIDED WHETHER TO SELL THE GENESIS CDX IN JAPAN SHE SAID THE SPOKESWOMAN SAID SEGA IS AIMING FOR WORLDWIDE GENESIS CDX SALES OF 200000 UNITS IN THE FIRST YEAR 9401070159 940107 WHO'S NEWS DELL COMPUTER SAYS CHIEF OF TECHNOLOGY LEFT FOR POST AT MIPS AUSTIN TEXAS DELL COMPUTER CORP SAID ITS CHIEF TECHNOLOGY OFFICER G GLENN HENRY LEFT THE COMPANY TO JOIN MICROPROCESSOR DESIGNER MIPS TECHNOLOGIES INC MR HENRY 51 YEARS OLD WILL BE PC DIVISION DIRECTOR FOR MIPS A MOUNTAIN VIEW CALIF UNIT OF SILICON GRAPHICS INC IN THE NEW POST MR HENRY WILL WORK ON DEVELOPING MIPS PROCESSORS FOR PERSONAL COMPUTERS MR HENRY JOINED DELL IN 1988 AT THE TIME THE MAILORDER COMPUTER COMPANY HERALDED HIS ARRIVAL AS A SIGN OF ITS COMMITMENT TO ADVANCED PC RESEARCH AND TECHNOLOGY BEFORE JOINING DELL MR HENRY SPENT 21 YEARS AT INTERNATIONAL BUSINESS MACHINES CORP WHERE HE LED THE EARLY DEVELOPMENT OF BIG BLUE'S UNIX WORKSTATION LINE HE LATER WAS AWARDED THE TITLE OF IBM FELLOW A TOP TECHNICAL ACCOLADE AT THE COMPANY LAST YEAR HOWEVER MR HENRY'S DAYTODAY DUTIES AT DELL WERE DIMINISHED WHEN THE COMPANY HIRED ERIC HARSLEM A FORMER APPLE COMPUTER INC VICE PRESIDENT AS THE NEW SENIOR VICE PRESIDENT OF THE PRODUCT GROUP A POST PREVIOUSLY HELD BY MR HENRY DELL DIDN'T SAY WHETHER MR HENRY'S JOB AS CHIEF TECHNOLOGY OFFICER WOULD BE FILLED 9401070158 940107 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS HERE'S A RADICAL IDEA FOR COMPANIES IF YOU WANT TO SAVE MONEY FIRE YOUR CUTRATE LAWYERS HIRE EXPENSIVE ONES INSTEAD CRAZY CONSIDER THE CASE OF USF&G CORP THE BIG INSURANCE COMPANY WHICH DID JUST THAT AND HAS REAPED ASTONISHING REWARDS AFTER SWITCHING ABOUT HALF OF ITS LEGAL WORK TO BETTERKNOWN ATTORNEYS AND PRICIER LAW FIRMS JUST OVER A YEAR AGO THE INSURER SAYS ITS TOTAL COST OF DEFENDING AND SETTLING CLAIMS PLUNGED BY 50 MILLION THE BEST LAWYERS ARE EXPENSIVE SAYS USF&G'S GENERAL COUNSEL JOHN A MACCOLL BUT THE SECONDBEST LAWYERS ARE VERY EXPENSIVE HIS COMPANY HAS LEARNED HE SAYS THAT TOPFLIGHT ATTORNEYS AT ELITE FIRMS WASTE LESS TIME WIN MORE CASES MAKE FEWER MISTAKES AND ARE MORE INTIMIDATING AT THE SETTLEMENT TABLE USF&G'S RISKY MOVE RUNS DIRECTLY COUNTER TO THE CURRENT LEGAL COSTMANAGEMENT ZEITGEIST EVERYWHERE COMPANIES ARE SCRUTINIZING THEIR LEGAL BUDGETS AND TURNING TO LOWCOST ALTERNATIVES WHEN THEY CAN'T BROWBEAT THEIR TRADITIONAL LAW FIRMS INTO CUTTING RATES IN SOME INSTANCES COMPANIES ARE CONDUCTING BEAUTY CONTESTS IN WHICH LAWYERS COMPETE FOR WORK BY TRYING TO SUBMIT THE LOWEST BID OR ARE DEMANDING FIXEDFEE DEALS IN WHICH LAW FIRMS AGREE IN ADVANCE TO MEET ALL OF A COMPANY'S LEGAL NEEDS FOR A SET SUM BUT THE BALTIMORE PROPERTYANDCASUALTY INSURER GAMBLED THAT THE WAY TO SAVE MONEY MIGHT NOT BE TO SHAVE FEES BUT TO TRY TO MAKE DEEP CUTS IN A BIGGER LEGAL COST DAMAGES ACTUALLY PAID AS A RESULT OF LAWSUITS AGAINST THE COMPANY'S POLICYHOLDERS THE IDEA SUGGESTED BY MR MACCOLL WAS APPROVED BY CHIEF EXECUTIVE OFFICER NORM BLAKE JR THE OFFICIAL HAD TOLD MR MACCOLL TWO YEARS AGO THAT HE WAS WORRIED THAT THE COMPANY HAD DEVELOPED A REPUTATION AS AN EASY MARK IN CLAIMS CASES WITH WEAK DEFENSE ATTORNEYS WHO CAVED IN EASILY THE EXECUTIVES REVIEWED USF&G'S ANNUAL COST OF DEFENDING CLAIMS TEN PERCENT WAS GOING TO LAWYERS IN FEES AND 90 WAS BEING PAID TO PLAINTIFFS IN SETTLEMENTS AND DAMAGE AWARDS MOST COMPANIES OBSESS ABOUT THE LEGAL FEES AND DON'T TRY TO MANAGE THE MORE IMPORTANT NUMBER THE COST OF LOSING MR MACCOLL SAYS WE DECIDED TO TRY AND REDUCE THE 90 BY LEVERAGING THE 10 HE IMMEDIATELY EMBARKED ON A TWOSTEP PROGRAM FIRST HE ENLARGED TO 12 ATTORNEYS FROM THREE THE INHOUSE LAW DEPARTMENT THAT HANDLES SUITS AGAINST POLICYHOLDERS MORE THAN TRIPLING ITS BUDGET TO 3 MILLION EXPERIENCED LITIGATORS WERE LURED WITH SALARY OFFERS THAT WERE COMPETITIVE WITH LOCAL LAW FIRMS NEXT TOP STAFF ATTORNEYS WERE DISPATCHED ACROSS THE COUNTRY TO EVALUATE 250 OF THE COMPANY'S PRINCIPAL OUTSIDE LAW FIRMS THESE TENDED TO BE SMALL FIVETO10PERSON OFFICES THAT CHARGED ABOUT 80 AN HOUR USF&G LAWYERS GRILLED THE OUTSIDE COUNSEL ABOUT TRIAL EXPERIENCE AND PAST VICTORIES ASKING HOW MANY SCALPS THEY HAD HANGING FROM THEIR BELT SAYS MR BLAKE THE ATTORNEYS EVEN PHONED PLAINTIFFS' LAWYERS FOR THE NAMES OF DEFENSE COUNSEL THEY FEARED MOST AFTER A NINEMONTH REVIEW THE AX FELL ON ABOUT 100 OF USF&G'S OUTSIDE LAW FIRMS IN THEIR PLACE THE COMPANY TURNED TO A VARIETY OF COSTLIER FIRMS THESE INCLUDED SUCH WHITESHOE INSTITUTIONS AS BALTIMORE'S PIPER & MARBURY AND HOUSTON'S FULBRIGHT & JAWORSKI BIG FIRMS WHERE ALIST LITIGATORS BILL UPWARDS OF 200 AN HOUR RESULTS WERE APPARENT ALMOST IMMEDIATELY NEIL DILLOFF A PARTNER AT PIPER WAS RETAINED FOR A PROJECT THAT THE COMPANY DUBBED OPERATION HIRED GUN HE REVIEWED 16 OF USF&G'S PRICKLIEST CASES IN TEXAS AND WAS ABLE TO SETTLE THEM FOR A TOTAL OF 63 MILLION OR 3 MILLION LESS THAN PREVIOUS OUTSIDE LAWYERS HAD SUGGESTED WOULD BE THE LOWEST AMOUNT POSSIBLE IN ANOTHER CASE FULBRIGHT PARTNER SCOTT LASSETTER WON A JURY TRIAL ON BEHALF OF A USF&G POLICYHOLDER A FEW WEEKS AFTER THE INSURANCE COMPANY'S PREVIOUS OUTSIDE LAWYER HAD RECOMMENDED SETTLING FOR 1 MILLION AT THE END OF LAST YEAR THE COMPANY CALCULATED THE MONEY IT SPENT IN SETTLEMENTS AND DAMAGES IN 1993 AND COMPARED THAT FIGURE ROUGHLY 12 BILLION WITH ESTIMATES OF WHAT THE COMPANY THOUGHT IT WOULD HAVE PAID IN THE SAME CASES BEFORE STARTING ITS NEW LEGAL PROGRAM THE DIFFERENCE 35 MILLION EVEN MORE SURPRISING WAS THE TALLY FOR LEGAL FEES THE COMPANY CAME IN 15 MILLION UNDER BUDGET SPENDING ABOUT 135 MILLION ON OUTSIDE LAW FIRMS THIS WAS A PARTICULAR BOON BECAUSE THE COMPANY HAD EXPECTED ITS LEGAL FEES TO RISE SOMEWHAT SINCE IT WAS SPENDING MORE PER HOUR ON LAWYERS AND BRINGING MORE CASES TO TRIAL MR MACCOLL SAYS THE SAVINGS MAY ACTUALLY BE EVEN GREATER BECAUSE OF ANOTHER INTANGIBLE BENEFIT DETERRENCE OVER TIME PLAINTIFFS' LAWYERS START TO SENSE THAT A COMPANY IS SERIOUS ABOUT DEFENDING ITSELF AND THEY'LL STOP BRINGING NUISANCE CASES HE SAYS TOPOFTHELINE LAW FIRMS ARE SURE TO CHEER SUCH REPORTS WHERE WORDS LIKE VALUE HAD STARTED TO CREEP INTO THEIR PROMOTIONAL LEXICON NOTIONS LIKE QUALITY MIGHT BEGIN TO REAPPEAR ARMED WITH STORIES LIKE USF&G'S BIGTICKET LAWYERS CAN START WRAPPING THEMSELVES ONCE AGAIN IN THE CASHMERE MANTLE OF ELITISM YOU MIGHT SAY IT'S LIKE BUYING A MERCEDES RATHER THAN A GEO SAYS MR DILLOFF OF THE 265 HOURLY RATE HE CHARGED USF&G THE MERCEDES RUNS BETTER IS MORE EFFICIENT AND DOESN'T BREAK DOWN TO BE SURE THERE'S STILL MUCH TO BE SAID FOR THE RARE FIRM THAT OFFERS LOW FEES AND HIGH QUALITY AS SOME SMALLER SHOPS AND SPINOFFS FROM LARGER FIRMS HAVE BEEN ABLE TO DO BUT SOME CONSULTANTS PREDICT THAT USF&G'S CONTRARIAN STRATEGY MAY BE THE NEXT NEW WAVE IT'S BOTH UNUSUAL AND ENLIGHTENED SAYS JOEL HENNING A SENIOR VICE PRESIDENT OF THE LEGAL CONSULTING FIRM HILDEBRANDT INC SOMERVILLE NJ IT'S REALLY ABOUT TIME THAT GENERAL COUNSEL STOP GOING THROUGH ALL THIS GAMEPLAYING WITH DISCOUNTS AND START FOCUSING ON THE LEGAL FUNCTION WHICH IS TO PROTECT THE COMPANY'S INTERESTS 9401070157 940107 PHILIP MORRIS WORKER PLEADS GUILTY TO CHARGE STEMMING FROM BRIBES NEW YORK A FORMER PURCHASING AGENT FOR PHILIP MORRIS COS PLEADED GUILTY IN FEDERAL COURT HERE TO CHARGES OF BIDRIGGING AND TAX EVASION FOR FAILING TO REPORT AT LEAST 1 MILLION IN BRIBES HE RECEIVED FROM A PHILIP MORRIS SUPPLIER THE JUSTICE DEPARTMENT SAID LOUIS T CAPPELLI AGREED TO DEPOSIT 2 MILLION IN AN ESCROW ACCOUNT TO COVER POSSIBLE FINES MR CAPPELLI OF GARDEN CITY NY COULD NOT BE REACHED FOR COMMENT THE INVESTIGATION WAS PROMPTED BY INFORMATION SUPPLIED BY PHILIP MORRIS WHICH UNCOVERED THE SCHEME IN 1991 AND FIRED MR CAPPELLI AND ANOTHER EMPLOYEE PHILIP MORRIS THEN TURNED ITS INFORMATION OVER THE JUSTICE DEPARTMENT THE GOVERNMENT CHARGED MR CAPPELLI WITH ACCEPTING BRIBES TO AWARD CONTRACTS FOR MAKING ADVERTISING DISPLAY STANDS POSTERS AND COUNTER CARDS TO A PARTICULAR SUPPLIER THE SCHEME ALLEGEDLY BEGAN IN THE LATE 1970S PEOPLE FAMILIAR WITH THE CASE SAID THE INVESTIGATION IS CONTINUING AND IS FOCUSING ON THE OUTSIDE VENDORS THAT SET UP THE ALLEGED SCHEME WITH MR CAPPELLI 9401070155 940107 HOTELS ARE SEEN SHOWING GAINS FOR 4TH QUARTER HIGHER OCCUPANCY RATES ARE CITED BY ANALYSTS AS INDUSTRY RECOVERS BY ANNE WATSON SPECIAL TO THE WALL STREET JOURNAL NEW YORK HOTEL COMPANIES' FOURTHQUARTER EARNINGS WILL PROBABLY JUSTIFY THE MARKET'S RECENT OPTIMISM FOR THE LODGING INDUSTRY ANALYSTS SAID ANALYSTS ATTRIBUTE THEIR OPTIMISTIC VIEWS TO THE ECONOMY AND HIGHER OCCUPANCY AND ROOM RATES AS THE INDUSTRY CONTINUES TO RECOVER FROM A DISMAL PERIOD OF 1990 AND 1991 MY READING WAS THAT BUSINESS WAS GOOD IN THE QUARTER SAID JOSEPH DOYLE AN ANALYST AT SMITH BARNEY SHEARSON INC OCCUPANCY WAS UP 1 TO 2 ROOM PRICES WERE NOT STRONG BUT LOOKING BETTER SMITH TRAVEL RESEARCH OF NASHVILLE TENN SAID IT EXPECTS THE INDUSTRY'S AVERAGE OCCUPANCY RATES WERE 637 IN 1993 UP FROM 617 IN 1992 PKF CONSULTING WHICH TRACKS THE HOTEL INDUSTRY SEES INDUSTRYWIDE REVENUE AND PROFITS INCREASING 32 IN 1993 FOR 1994 THE CONSULTING FIRM FORECASTS REVENUE WILL RISE 45 AND PROFITS WILL GAIN 59 BUT PKF ADDED THAT BECAUSE MANY HOTELS CAN'T REDUCE EXPENSES FURTHER THEY WON'T BE ABLE TO IMPROVE OPERATING PROFIT MARGINS AS THEY DID IN 1992 WHEN MARGINS WIDENED TO 217 FROM 206 IN 1991 ANALYSTS SAID THE ECONOMYLINE HOTELS HAVE RECOVERED THE QUICKEST FROM THE RECESSION THE DEMAND FOR LESSEXPENSIVE ROOMS IS STRONG AND THE ECONOMY HOTELS HAVE MORE FLEXIBILITY TO RAISE THEIR RATES ACCORDING TO MICHAEL MUELLER AN ANALYST AT MONTGOMERY SECURITIES LARGER COMPANIES SUCH AS MARRIOTT INTERNATIONAL INC AND HOSPITALITY FRANCHISE SYSTEMS INC ARE ALSO ENJOYING MORE DEMAND FOR THEIR FRANCHISE SERVICES THE STOCKS OF LEADING PUBLICLY TRADED COMPANIES WITH HOTEL BUSINESSES HOSPITALITY FRANCHISE MARRIOTT LA QUINTA INNS INC AND HILTON HOTELS CORP ALL HIT 52WEEK HIGHS IN LATE DECEMBER HOSPITALITY FRANCHISE SAID IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF 25 CENTS A SHARE MORE THAN DOUBLE YEAREARLIER EARNINGS OF 12 CENTS A SHARE THE COMPANY HOLDS THE DAYS INN HOWARD JOHNSON SUPER 8 PARK INN AND RAMADA BRANDS MR MUELLER ATTRIBUTED THE EXPECTED RISE IN HOSPITALITY FRANCHISE'S EARNINGS TO THE COMPANY'S ACQUISITIONS IT BOUGHT SUPER 8 IN APRIL AND PARK INN IN JUNE MR MUELLER ALSO CITED THE COMPANY'S REVENUE FROM PREFERRED VENDOR CONTRACTS WHICH HE SEES PRODUCING ABOUT 65 MILLION IN ANNUAL REVENUE THE LATEST VENDOR CONTRACT WAS SIGNED IN SEPTEMBER WITH PEPSICO INC'S PIZZA HUT ALLOWING PIZZA HUT TO DELIVER PIZZAS TO HOSPITALITY FRANCHISE'S HOTELS JOHN ROHS AN ANALYST AT WERTHEIM SCHRODER & CO ESTIMATES THAT MARRIOTT INTERNATIONAL WILL REPORT EARNINGS OF 45 CENTS A SHARE FOR THE QUARTER THE COMPANY WHICH WAS SPLIT FROM HOST MARRIOTT CORP IN OCTOBER HAD PRO FORMA EARNINGS OF 39 CENTS A SHARE IN THE YEAREARLIER QUARTER A SURVEY OF TWO ANALYSTS BY ZACK'S INVESTMENT RESEARCH INC YIELDED A MEAN ESTIMATE OF 40 CENTS A SHARE FOR MARRIOTT'S RECENT QUARTER MR MUELLER SAID LA QUINTA INNS MEANTIME SHOULD REPORT EARNINGS OF 16 CENTS A SHARE WHICH MATCHES THE MEAN ESTIMATE OF TWO ANALYSTS SURVEYED BY ZACK'S A YEAR EARLIER THE COMPANY REPORTED NET INCOME OF 17 CENTS A SHARE BEFORE A 3FOR2 STOCK SPLIT LA QUINTA'S FOURTHQUARTER EARNINGS WERE LIMITED BY THE COMPANY'S REFURBISHING PROGRAM ONCE THEIR REFURBISHING PROGRAM IS COMPLETED THEIR IMPROVEMENT WILL BE DRAMATIC MR MUELLER SAID JIM SCHMITT OF WESTCOUNTRY FINANCIAL SEES HILTON HOTELS EARNING 55 CENTS A SHARE EXCLUDING ANY EXTRAORDINARY ITEMS THE MEAN ESTIMATE OF EIGHT ANALYSTS SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WAS 63 CENTS A SHARE THE COMPANY REPORTED EARNINGS OF 55 CENTS A SHARE A YEAR EARLIER MR SCHMITT SEES BETTER DAYS AHEAD FOR HILTON SOMETIME IN 1995 AND 1996 ABOUT TWOTHIRDS OF HILTON'S REVENUE COMES FROM GAMBLING BUSINESSES WITH THE REMAINING ONETHIRD FROM LODGING THE COMPANY HAS BEEN HURT BY THE NEW CROP OF COMPETITORS IN THE GAMBLING INDUSTRY AND THE SAGGING HOTEL BUSINESS MR SCHMITT SAID HILTON WILL BE SORELY TESTED IN ITS FIRSTQUARTER WHEN IT WILL FACE THE NEW CASINOHOTEL COMPLEXES IN LAS VEGAS 9401070154 940107 LOTUS' STRONG SALES FOR 4TH QUARTER FUEL RALLY IN SHARES AGAIN CAMBRIDGE MASS LOTUS DEVELOPMENT CORP FINISHED THE YEAR WITH STRONG MOMENTUM BEHIND ITS LATEST 123 SPREADSHEET AND SEVERAL BIG SALES OF ITS SMARTSUITE BUNDLED SOFTWARE PACKAGE EXECUTIVES SAID WE'VE SEEN A STRONG SUSTAINABLE GAIN OF 15 TO 20 PERCENTAGE POINTS IN MARKET SHARE SINCE THE NEW 123 WAS INTRODUCED SIX MONTHS AGO SAID JEFFREY BEIR VICE PRESIDENT OF LOTUS'S SPREADSHEET UNIT OPTIMISM ABOUT FOURTHQUARTER SALES AND NEW PRODUCTS HAS HELPED FUEL A RALLY IN LOTUS SHARES THE STOCK WHICH ROSE 3 WEDNESDAY CLOSED YESTERDAY AT 58125 A SHARE UP 1125 IN TRADING ON THE NASDAQ STOCK MARKET AMONG FOURTHQUARTER SALES WAS A MARINE CORPS PURCHASE OF 20000 UNITS OF SMARTSUITE AND A DECISION BY MOBIL CORP TO STICK WITH LOTUS 123 AFTER AN EVALUATION OF MICROSOFT CORP'S EXCEL PRODUCT MR BEIR SAID 123 OVERTOOK EXCEL IN SINGLECOPY SALES IN THE FOURTH QUARTER BUT HE SAID THE PROGRAM STILL LAGS EXCEL IN OVERALL WINDOWS MARKET SHARE WHEN SUITE SALES ARE FACTORED IN BECAUSE OF THE STRENGTH OF MICROSOFT'S OFFICE SOFTWARE PACKAGE IN OVERALL SALES MR BEIR ESTIMATES THAT 123 HAS RISEN TO ABOUT 40 OF THE WINDOWS MARKET BEHIND EXCEL AT ABOUT 50 OF THE MARKET MICROSOFT'S OFFICE SUITE IS STILL THE MARKET LEADER SAID RICK SHERLUND AN ANALYST WITH GOLDMAN SACHS & CO BUT LOTUS HAS BECOME THE ONLY OTHER MAJOR PLAYER AND BOTH ARE RAPIDLY GAINING SHARE AT THE EXPENSE OF THIRDPLACE BORLAND INTERNATIONAL INC HE SAID 9401070153 940107 COMEX DEFERS ELECTION OF BOARD NEW YORK NEW YORK'S COMMODITY EXCHANGE BEST KNOWN FOR ITS PRECIOUSMETAL FUTURES CONTRACTS SAID IT WOULD DEFER ITS ANNUAL ELECTION OF DIRECTORS UNTIL THE CONCLUSION OF ITS MERGER TALKS WITH THE NEW YORK MERCANTILE EXCHANGE THE NYMEX HAS PROPOSED ACQUIRING THE COMEX TERMS CALL FOR NYMEX TO PAY 35 MILLION WHICH WOULD BE DIVIDED AMONG COMEX MEMBERS COMEX TRADERS ALSO WOULD GET 15 MILLION IN COMPENSATION FROM THEIR EXCHANGE'S OWN REVENUES CURRENT COMEX DIRECTORS AND MEMBERS OF BOTH THE COMEX AND NYMEX ARE EXPECTED TO VOTE ON THE PROPOSAL IN COMING WEEKS 9401070152 940107 INDONESIA BUDGET CALLS FOR BUSINESS GROWTH AND GRIP ON SPENDING JAKARTA INDONESIA'S NEW BUDGET CALLS FOR A TINY RISE IN SPENDING AND A BIG LEAP IN EXPECTATIONS THAT THE PRIMARY ENGINE OF GROWTH WILL BE PRIVATE NONOIL BUSINESS THE DRAFT BUDGET FOR THE YEAR BEGINNING APRIL 1 PRESENTED TO PARLIAMENT BY PRESIDENT SUHARTO KEEPS A FIRM GRIP ON EXPENDITURES WHILE AIMING FOR A HEFTY INCREASE IN TAX COLLECTION INDONESIA IS COUNTING ON RECEIVING ABOUT 48 BILLION IN FOREIGN AID THAT'S A 48 INCREASE FROM THE AMOUNT BUDGETED FOR THE CURRENT YEAR THOUGH IN THE COMING YEAR FOREIGN AID ACCOUNTS FOR A SLIGHTLY SMALLER PERCENTAGE OF TOTAL REVENUE 144 DOWN FROM 15 THE BUDGET TRADITIONALLY APPROVED WITHOUT CHANGES SETS BOTH TOTAL SPENDING AND REVENUE AT 6975 TRILLION RUPIAH 3302 BILLION THAT'S 12 ABOVE THE LEVEL APPROVED FOR THE CURRENT YEAR BUT REPRESENTS LITTLE REAL GROWTH AS ANNUAL INFLATION IS NEARLY 10 THE BUDGET DRAFT CONFIRMS THAT THE COUNTRY HAS BROADENED ITS BASE TO COPE WITH A DROP IN OILEXPORT INCOME WHILE LOW WORLD OIL PRICES NOW AROUND 13 A BARREL CONTRIBUTED TO THE DECISION TO KEEP A TIGHT LID ON SPENDING THE DRAFT SHOWS HOW SMALL A ROLE OIL PLAYS ONLY ABOUT 22 OF DOMESTIC REVENUE WILL COME FROM OIL AND GAS COMPARED WITH NEARLY 80 A DECADE AGO IT ALSO SHOWS THAT TECHNOCRATS RETAIN A STRONG HAND IN MAKING POLICY WHEN MR SUHARTO APPOINTED A NEW CABINET LAST MARCH THERE WERE CONCERNS THAT TECHNOCRATS HAD LOST GROUND TO A SCHOOL OF MINISTERS CALLED THE NATIONALISTS WHO FAVOR BIG STATE SPENDING THE REALISTIC AND CAUTIOUS DRAFT BUDGET INDICATES THAT TECHNOCRATS ARE VERY MUCH IN CONTROL SAID HADI SOESASTRO EXECUTIVE DIRECTOR OF THE PRIVATE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES THE DRAFT ALSO INDICATES THE NATION IS DEPENDING ON PRIVATE BUSINESS WHICH GENERALLY EXPECTS A GOOD 1994 TO SPUR GROWTH 9401070151 940107 BUSINESS BRIEFS TYSON FOODS INC ACQUIRED GORGES FOODSERVICE INC HARLINGEN TEXAS TERMS WEREN'T DISCLOSED F&M NATIONAL CORP SIGNED A PRELIMINARY AGREEMENT TO ACQUIRE HALLMARK BANK & TRUST CO SPRINGFIELD VA TERMS WEREN'T DISCLOSED BUT A SPOKESMAN FOR F&M SAID THE PURCHASE WOULD INVOLVE A TAXFREE EXCHANGE OF SHARES GENERAL TIRE INC WAS AWARDED A 4 MILLION ONEYEAR CONTRACT TO SUPPLY TRUCK AND PASSENGER TIRES FOR CALIFORNIA'S STATEOWNED VEHICLES HOLLYWOOD CASINO CORP BOUGHT A DOCKSIDE CASINO IN TUNICA COUNTY MISS FROM SUMMIT CASINOS INTERNATIONAL INC FOR 15 MILLION REYNOLDS & REYNOLDS CO ACQUIRED FORMCRAFT INC A HOUSTONBASED REGIONAL BUSINESSFORMS MANUFACTURER TERMS WEREN'T DISCLOSED 9401070150 940107 QUARTERLY MUTUAL FUNDS REVIEW IT'S TOUGH TO GET OUT OF INVESTMENT RUT BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL JUST AS IN A BAD RELATIONSHIP YOU PAY DEARLY FOR STAYING TOO LONG IN A LOUSY MUTUAL FUND YOU LOSE MONEY YOU LOSE SLEEP YOU FORGET THERE ARE BETTER MUTUAL FUNDS OUT THERE WAITING FOR YOU THINGS ARE UNLIKELY TO CHANGE UNLESS YOU GET OUT OF THE RUT CONSIDER THIS A RECENT ACADEMIC STUDY SAYS THE WORST MUTUAL FUNDS CONSISTENTLY PRODUCE INFERIOR RETURNS IF I SAW A FUND IN THE BOTTOM 10 IN THE PAST TWO OR THREE YEARS I FOUND THAT THE FUND IS LIKELY TO STAY IN THE BOTTOM 10 SAYS RAVI SHUKLA A SYRACUSE UNIVERSITY FINANCE PROFESSOR WHO COWROTE THE STUDY THERE'S MORE MOMENTUM FOR INFERIOR PERFORMANCE THAN SUPERIOR PERFORMANCE ONE WAY TO AVOID GETTING CAUGHT UP IN THAT MOMENTUM IS TO BECOME A SMARTER SHOPPER IN THE MUTUALFUND SUPERMARKET IT'S EASY TO SEE WHY TOPPERFORMING FUNDS GROW IN SIZE THEY GROW BIGGER GATHER MORE ASSETS SAYS CHARLES TRZCINKA A FINANCE PROFESSOR AT THE STATE UNIVERSITY OF NEW YORK AT BUFFALO AND STUDY COAUTHOR BUT HOW DO YOU EXPLAIN BADLY PERFORMING FUNDS THAT DON'T LOSE ALL THEIR SHAREHOLDERS WHY DON'T PEOPLE PULL THEIR MONEY OUT THEY DON'T MAKE PROPER COMPARISONS PROF TRZCINKA SAYS INVESTORS MAKE THE MISTAKE OF COMPARING THE RETURNS OF MUTUAL FUNDS TO OTHER SAVINGS VEHICLES SUCH AS CERTIFICATES OF DEPOSIT PROF TRZCINKA SAYS INSTEAD THEY SHOULD STACK UP MUTUALFUND RETURNS TO MORE APPROPRIATE BENCHMARKS SUCH AS THE STANDARD & POOR'S 500STOCK INDEX WITH THE RIGHT COMPARISONS AT HAND IT'S EASIER TO DITCH THE LOSERS AND SWITCH TO MOREPROMISING FUNDS HOW DO YOU CHOOSE AMONG THOUSANDS OF FUNDS MOST DON'T THEY LEAVE IT UP TO THEIR BROKER PROF TRZCINKA SAYS THEY NEED TO PUT A LITTLE MORE INTO THEIR DECISIONMAKING PROFS TRZCINKA AND SHUKLA SPENT NEARLY TWO YEARS COMPARING THE PERFORMANCES OF 1387 OPENEND STOCK AND BOND FUNDS FROM 1979 TO 1989 TO THE RETURNS OF THE S&P 500 AND US TREASURY BILLS LOUSY STOCKPICKING POOR MARKETTIMING HIGH EXPENSES AND FREQUENT PORTFOLIO TURNOVER THAT RESULTS IN EXPENSIVE BROKER COMMISSIONS WERE CITED AS SOME OF THE REASONS FOR BOGGING DOWN PERFORMANCE SOME FUNDS CAN THANK BACKEND LOADS FOR THEIR CONTINUED EXISTENCE THESE FUNDS CHARGE COMMISSIONS FOR REDEEMING THEIR SHARES IT'S POSSIBLE PEOPLE SAY TO THEMSELVES THE FUND WILL DO BETTER THEN WE CAN GET OUT' SO THEY STAY IN UNTIL THEN BECAUSE THEY DON'T WANT TO GET THESE CHARGES PROF SHUKLA SAYS IF NOT FOR THOSE LOADS THESE FUNDS WOULD HAVE DISAPPEARED INVESTORS NEED TO BE CAREFUL WHERE THEY PUT THEIR MONEY THERE ARE TONS OF DOGS OUT THERE AND NOT JUST THE 44 WALL STREETS AND STEADMAN SAYS JONATHAN POND A WATERTOWN MASS FINANCIAL PLANNER AND AUTHOR REFERRING TO TWO FUND GROUPS INFAMOUS FOR HAVING HAD POORLY PERFORMING FUNDS BUT YOU DON'T HAVE TO STICK WITH A POOR FUND AND YOU DON'T HAVE TO BUY INTO ONE IF YOU DO YOUR HOMEWORK BEFORE BUYING A FUND IT'S NOT A RANDOM CHANCE IT WILL TURN INTO AN INFERIOR ONE MR POND SAYS MR POND'S OWN RECENT RESEARCH FOUND 100 FUNDS THAT CONSISTENTLY LANDED IN THE TOP 20 IN THEIR CATEGORY IN BOTH OF THE PAST TWO UP AND DOWN MARKETS INDEED PROFS SHUKLA AND TRZCINKA NAMED 24 FUNDS THAT HAVE BEEN CONSISTENTLY SUPERIOR INCLUDING FIDELITY MAGELLAN NICHOLAS FUND LINDNER DIVIDEND AND PHOENIX BALANCED OF COURSE TOPPERFORMING FUNDS CAN STILL FALL TEMPORARILY INTO THE INVESTMENT DOGHOUSE BUT THEY'RE UNLIKELY TO REMAIN THERE FOREVER THE ACADEMIC STUDY RECOMMENDED STICKING WITH LARGE FUNDS DESPITE A COMMON BELIEF THAT SUCH FUNDS ARE SLUGGISH AND INFLEXIBLE THE TWO PROFESSORS CONTEND THAT THE AVERAGE SUPERIOR FUND HAS 11 BILLION IN ASSETS WHILE A TYPICAL LAGGARD HAS 129 MILLION IN ASSETS A LARGE FUND CAN MOVE THE MARKET AND THAT BRINGS A LITTLE PERFORMANCE BIAS TO THE FUND PROF SHUKLA SAYS FUND GROUPS MAKE SURE THEIR STAR FUNDS TURN IN SOLID PERFORMANCES WHICH MEANS THEY WON'T TAKE UNNECESSARY RISKS SAID DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER ASSETS FLOW TO THE BETTER FUNDS MR PHILLIPS SAYS THE LARGER FUNDS TAKE GREAT PAINS TO MAKE SURE THEY DON'T GIVE PEOPLE A REASON TO SELL BESIDES FAVORING LARGE FUNDS FUND EXPERTS OFFER SOME OTHER ADVICE FOR STAYING AWAY FROM MUTUALFUND TURKEYS CHECK FOR OUTRAGEOUS FEES AVERAGE ANNUAL EXPENSES ARE ABOUT 15 FOR STOCK FUNDS 1 FOR TAXABLE BOND FUNDS AND 075 FOR MUNICIPALBOND FUNDS ACCORDING TO MORNINGSTAR PICK A MANAGER WITH A GOOD REPUTATION SEE IF THE MANAGER OF YOUR FAVORITE FUND IS STILL AT THE HELM STICK WITH A WELLKNOWN FUND FAMILY AMONG MR POND'S GUIDELINES FOR INVESTORS DECIDE HOW MUCH TO INVEST IN STOCKS AND BONDS THEN CALCULATE HOW MUCH GOES INTO EACH STOCK AND BONDFUND CATEGORY INTERNATIONAL GROWTH AND INCOME JUNK BONDS ETC IF YOU'RE UNDECIDED DAVID WRIGHT A SANTA MONICA CALIF FINANCIAL ADVISER RECOMMENDS FIDELITY ASSET MANAGER WHICH DIVERSIFIES ITS ASSETS AMONG STOCKS AND BONDS HE ALSO LIKES GT GLOBAL HIGH INCOME A BOND FUND WITH LOW VOLATILITY AND VANGUARD/WELLESLEY INCOME FOR ITS SOLID LONGTERM TRACK RECORD DAVID PETERSEN A SILVER SPRING MD FINANCIAL PLANNER PUTS A HIGH PREMIUM ON A FUND MANAGER WHAT MAKES THINGS WORK IS THE INDIVIDUAL MANAGING THE FUND HE SAYS AMONG HIS FAVORITES ARE AMERICAN HERITAGE'S HEIKO THIEME AND OAKMARK INTERNATIONAL'S DAVID HERRO PROF SHUKLA SAYS A MANAGER'S EDUCATIONAL BACKGROUND MAY BE KEY TO A FUND'S PERFORMANCE A SEPARATE STUDY OF HIS SHOWS THAT MUTUAL FUNDS RUN BY CHARTERED FINANCIAL ANALYSTS POSTED BETTER RETURNS THAN THOSE WITHOUT THE CERTIFICATION CHARTERED FINANCIAL ANALYSTS RECEIVE THIS PROFESSIONAL RANKING AFTER EXTENSIVE EXAMINATIONS AND EXPERIENCE AS ANALYSTS JOHN BUTLER THE RECENTLY RETIRED PRESIDENT OF INVESCO FUNDS GROUP SAYS STAYING WITH A WELLKNOWN FAMILY OF FUNDS MAKES IT EASIER TO REDEEM SHARES FROM ONE FUND AND SWITCH INTO ANOTHER 9401070149 940107 TAIWAN CURBS FOREIGN ROLE IN STOCK MARKET CENTRAL BANK IS CONCERNED OVER CURRENCY'S CLIMB MOVE IS SHIFT IN POLICY BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S CENTRAL BANK CONCERNED ABOUT THE RECENT APPRECIATION OF THE NEW TAIWAN DOLLAR IS SLOWING THE FLOW OF FOREIGN CAPITAL INTO THE COUNTRY'S BOOMING STOCK MARKET IT IS A POLICY SHIFT THAT WON'T SIT WELL WITH FOREIGN INVESTORS WHO ARE EAGER TO GET A PIECE OF THE TAIWAN STOCK MARKET'S SKYROCKETING RALLY ON WEDNESDAY THE FIRST TRADING DAY OF 1994 THE MARKET'S WEIGHTED INDEX SHOT UP 34628 POINTS OR 57 TO 641684 TRADING SLOWED THURSDAY WITH THE TAIWAN STOCK EXCHANGE WEIGHTED INDEX UP 3768 POINTS TO CLOSE AT 645452 THE HIGHEST LEVEL SINCE JUNE 7 1990 JUST TWO MONTHS AGO THE CENTRAL BANK OPENED THE FLOODGATES AND ALLOWED OVERSEAS INSTITUTIONAL INVESTORS UNPRECEDENTED ACCESS TO THE MARKET SINCE EARLY NOVEMBER REGULATORS HERE HAVE AUTHORIZED ABOUT US16 BILLION OF PLANNED INVESTMENTS OF FOREIGN CAPITAL IN TAIWANESE SECURITIES THAT MONEY HAS HELPED SPUR THE CURRENT RALLY WHICH HAS BOOSTED SHARE PRICES 60 IN THE PAST TWO MONTHS BUT THE INCREASED FLOW OF CAPITAL INTO TAIWAN DURING DECEMBER ALSO HELPED PUSH THE NEW TAIWAN DOLLAR MODESTLY HIGHER THAT BROUGHT AN IMMEDIATE REACTION FROM THE CENTRAL BANK WHOSE PRIMARY CONCERN IS TO KEEP THE CURRENCY STABLE AND MAINTAIN THE COMPETITIVENESS OF TAIWANESE EXPORTS BROKERS SUGGEST THAT THE CENTRAL BANK ALSO MAY BE WORRIED ABOUT THE REEMERGENCE OF SPECULATIVE TRADING IN THE STOCK MARKET WHICH RECENTLY HAS FEVERISHLY FOLLOWED FOREIGNERS' INVESTMENT STRATEGIES BY SLOWING THE FLOW OF FOREIGN MONEY INTO THE MARKET AUTHORITIES MAY BE HOPING TO COOL THE RALLY CENTRALBANK OFFICIALS LAST WEEKEND INDICATED THROUGH THE LOCAL PRESS THAT THEY ARE ADOPTING A MORERESTRICTIVE POLICY TOWARD FOREIGN INVESTMENT UNDER TAIWAN GOVERNMENT REGULATIONS A TOTAL OF US5 BILLION IN FOREIGN CAPITAL MAY BE BROUGHT INTO THE COUNTRY FOR INVESTMENT IN SECURITIES BUT THE MARKET'S RECENT RALLY HAS BROUGHT A TORRENT OF FOREIGN APPLICATIONS THAT WOULD EXCEED THAT CEILING TAIWAN'S SECURITIES AND EXCHANGE COMMISSION IS PUSHING TO RAISE THE CEILING BUT THE LOCAL PRESS SAYS CENTRALBANK OFFICIALS OPPOSE SUCH A MOVE AT THIS TIME MOREOVER SINCE MIDDECEMBER THE CENTRAL BANK HAS BEEN PROCEEDING SLOWLY IN ACTING ON APPLICATIONS RICHARD WERTHEIMER A BROKER WITH BARING SECURITIES TAIWAN LTD BELIEVES THAT THE TIGHTER POLICY PROBABLY WILL BE TEMPORARY AND THAT ONCE THE CURRENCY STABILIZES INVESTMENT APPROVALS WILL RESUME THE GENERAL TREND OF POLICY IS STILL TO OPEN UP HE SAYS THERE'S GOING TO BE A LOT OF PRESSURE ON THE CENTRAL BANK INDEED FOREIGN INVESTORS ARE CLAMORING TO GET INTO THE TAIWAN STOCK MARKET WHICH HAS UNDERPERFORMED MOST OTHER EAST ASIAN MARKETS FOR THE PAST YEAR CURRENTLY 18 FOREIGN INSTITUTIONS ARE AWAITING APPROVAL TO INVEST US136 BILLION IN TAIWAN SOME FUND MANAGERS SAY THAT THE CURRENT DELAY ON INVESTMENT APPLICATIONS RUNS COUNTER TO TAIWAN'S EFFORTS TO INTRODUCE ECONOMIC AND FINANCIAL REFORMS THAT WOULD ENABLE THE COUNTRY TO ENTER THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN THE NEAR FUTURE LIBERALIZATION OF THE FINANCIAL MARKET IS A PREREQUISITE TO ENTERING GATT SAYS JAMES HSU PRESIDENT OF FUBON INVESTMENT SERVICES CO A LOCAL FUND MANAGEMENT COMPANY SO WE SHOULD BE MORE GENEROUS IN SPEEDING UP THE PROCESS OF LIBERALIZATION RATHER THAN NOT ALLOWING MORE INVESTMENT A FUBON OVERSEAS SUBSIDIARY HAS APPLIED TO INVEST US200 MILLION IN TAIWAN IN CONJUNCTION WITH WARDLEY FINANCIAL SERVICES LTD OF HONG KONG IN A TELEPHONE INTERVIEW SAMUEL SHIEH THE CENTRAL BANK GOVERNOR SAID IT IS TOO EARLY TO DISCUSS WHETHER THE INVESTMENT CEILING WILL BE RAISED BUT HE ASSERTED THAT THE GOVERNMENT IS COMMITTED TO ALLOWING MORE FOREIGN INVESTMENT IN TAIWAN'S MARKET MR SHIEH ACKNOWLEDGED THAT THE CENTRAL BANK WAS CONCERNED ABOUT THE CURRENCY'S APPRECIATION DURING DECEMBER ALONG WITH THE IMPACT ON INTEREST RATES AND MONEY SUPPLY OUR FOREIGNEXCHANGE MARKET IS VERY SHALLOW HE SAID NOTING THAT TURNOVER OFTEN RANGES BETWEEN US50 MILLION AND US100 MILLION A DAY SO IF WE SUDDENLY HAVE US50 MILLION COME IN IN A DAY THERE IS IMMEDIATE APPRECIATION THIS IS VERY DIFFICULT THE SEC HAS BEEN PUSHING TO GET THE CENTRAL BANK TO AGREE TO AN INCREASE IN THE INVESTMENT CEILING TO US75 BILLION OR US10 BILLION BUT GOVERNMENT OFFICIALS SAY THAT SO FAR THE CENTRAL BANK HAS HAD THE UPPER HAND IN THE DEBATE A MINISTRY OF FINANCE OFFICIAL SAID THAT THE FINANCE MINISTER LIN CHENKUO SO FAR HAS REFUSED TO MAKE A FORMAL REQUEST TO THE CENTRAL BANK THAT THE CEILING BE RAISED HE SAID MR LIN HAS URGED THE SEC TO CONTINUE NEGOTIATING WITH THE CENTRAL BANK AND TO WAIT FOR FOREIGN INVESTMENTS TO HIT THE US5 BILLION LIMIT ONE HITCH THE SEC AND THE CENTRAL BANK CAN'T EVEN AGREE ON THE TECHNICALITIES OF HOW TO DEFINE WHEN THAT LIMIT IS REACHED 9401070147 940107 PHILADELPHIA EXCHANGE TO LIST NEW PRODUCTS BASED ON INDEX OPTIONS PHILADELPHIA THE PHILADELPHIA STOCK EXCHANGE SAID IT PLANS TO LAUNCH TRADING IN THREE NEW PRODUCTS BASED ON INDEX OPTIONS EARLY THIS YEAR PENDING APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION THE EXCHANGE SAID IT PLANS TO LIST THE BIG CAP INDEX COMPRISING 50 OF THE LARGEST STOCKS PUBLICLY TRADED IN THE US THE SEMICONDUCTOR INDEX COMPRISING THE STOCKS OF 16 SEMICONDUCTOR DEVELOPERS MANUFACTURERS AND DISTRIBUTORS AND THE BABY BELL INDEX MADE UP OF THE SHARES OF AMERICAN TELEPHONE & TELEGRAPH CO AND THE REGIONAL BABY BELL TELEPHONE COMPANIES AN INDEX OPTION IS THE RIGHT BUT NOT THE OBLIGATION TO EITHER BUY OR SELL THE VALUE OF AN INDEX AT A PREDETERMINED PRICE ON OR BEFORE A FIXED EXPIRATION DATE 9401070146 940107 CONSOLIDATED TECHNOLOGY GROUP NEW YORK CONSOLIDATED TECHNOLOGY GROUP LTD SAID IT ACQUIRED AVIONICS RESEARCH CORP A PRIVATELY HELD PROVIDER OF TECHNICAL PERSONNEL TERMS WEREN'T DISCLOSED CONSOLIDATED A COMPUTER AND OPTICALRELATED SERVICES COMPANY SAID THE ACQUISITION CONSISTS OF TWO RELATED COMPANIES BASED IN NEW YORK AND FLORIDA 9401070145 940107 ASSETS OF MONEY FUNDS ROSE FOR LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS CLIMBED BY 491 BILLION TO 58787 BILLION FROM A REVISED 58296 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT CO INSTITUTE SAID ASSETS OF 651 RETAIL MONEY MARKET MUTUAL FUNDS GREW BY 482 BILLION TO 39799 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 404 TAXABLE MONEY MARKET FUNDS ROSE BY 178 BILLION TO 30803 BILLION ASSETS OF 247 RETAIL TAXEXEMPT FUNDS ROSE BY 303 BILLION TO 8996 BILLION ASSETS OF THE 280 INSTITUTIONAL MONEY MARKET FUNDS INCREASED BY 965 MILLION TO 18988 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 226 TAXABLE MONEY MARKET FUNDS FELL BY 122 BILLION TO 16664 BILLION ASSETS OF 54 TAXEXEMPT FUNDS ROSE BY 132 BILLION TO 2325 BILLION 9401070144 940107 WHO'S NEWS HOLSON BURNES GROUP INC HOLSON BURNES GROUP INC NORTH SMITHFIELD RI STEVEN W BARNES EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS PHOTOGRAPHALBUM MAKER WAS NAMED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR MR BARNES 33 YEARS OLD SUCCEEDS MALCOLM LLOYD 54 WHO IS LEAVING THE COMPANY TO PURSUE OTHER INTERESTS HOLSON BURNES SAID IN A PRESS STATEMENT DEBORAH CARREAU 36 VICE PRESIDENTCONTROLLER WAS NAMED VICE PRESIDENTFINANCE AND WILL ASSUME MANY OF MR BARNES'S FORMER FINANCIAL DUTIES THE COMPANY SAID HOLSON BURNES ALSO SAID IT EXPECTS 1993 FOURTHQUARTER SALES TO BE IN THE 43 MILLION TO 44 MILLION RANGE WHICH IT SAID REPRESENTS A 13 TO 15 INCREASE OVER THE YEAREARLIER FOURTH QUARTER 9401070143 940107 INTERNATIONAL WORLD ECONOMY GATT TREATY IS PERCEIVED AS MAKING REAL CHANGES MOSTLY FOR THE BETTER BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WAVES OF AMERICAN BUSINESS PEOPLE LOBBIED HARD FOR THE GLOBAL TRADE TREATY THAT FINALLY EMERGED LAST MONTH IN GENEVA NOW THAT THEY'VE GOT IT WILL IT AFFECT HOW THEY OPERATE IN THE REAL WORLD OF INTERNATIONAL COMMERCE ABSOLUTELY AND GENERALLY FOR THE GOOD THOUGH SOMETIMES IN ENTIRELY NEW WAYS THAT'S BECAUSE THE NEW TREATY FOR ALL ITS ERRORS AND OMISSIONS GOES FAR BEYOND ITS PREDECESSORS TO REFLECT CHANGES IN THE GLOBAL ECONOMY FOR THE FIRST TIME IT BRINGS COMMERCIAL SERVICES AGRICULTURE AND INTANGIBLES LIKE SOFTWARE INTO THE FRAMEWORK OF GLOBAL TRADE RULES OVER TIME THE DEAL WILL LEAD TO RULES FOR THESE NEW AREAS OF ECONOMIC ACTIVITY COMPLETE WITH A WORLD TRADING ORGANIZATION TO ENFORCE THEM IT'S A VERY CHANGED WORLD THE RULEBASED ASPECT OF TRADE WILL BE VASTLY EXPANDED SAYS CALMAN COHEN A LOBBYIST WHO REPRESENTS US MULTINATIONALS ON TRADE ISSUES ONLY THE BROAD OUTLINE WAS SIGNED DEC 15 UNDER AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE 116MEMBER ORGANIZATION THAT OVERSEES MOST WORLD COMMERCE ITS COMPLEX CLAUSES WON'T START TO TAKE HOLD UNTIL 1995 IMPORTANT DETAILS ARE STILL BEING ADDED AND UNFINISHED HAGGLING ON CERTAIN KEY TOPICS SUCH AS TELECOMMUNICATIONS AND FINANCIAL SERVICES COULD LAST ANOTHER TWO YEARS THE DOCUMENT IS NEITHER COMPLETE NOR PERFECT YET AFTER A FEW WEEKS OF REFLECTION MANY BUSINESSMEN CONCLUDE ITS TERMS CAN ALTER SIGNIFICANTLY THE CONDUCT OF INTERNATIONAL COMMERCE AS THEY PHASE IN PAST AGREEMENTS BASICALLY CUT TARIFFS OR ABOLISHED OTHER IMPEDIMENTS TO INDUSTRIAL TRADE BUT THIS ONE RECOGNIZES HOW MUCH THE GLOBAL ECONOMY HAS EVOLVED BEYOND THE OLD CONCEPT OF PUTTING THINGS IN BOXES AND SHIPPING THEM SOMEWHERE THIS AGREEMENT MAKES TRADE AND INVESTMENT MORE OPEN AND TRANSPARENT AND MUTUALLY ADVANTAGEOUS AND THAT'S ALWAYS A PLEASURE SAYS JACK EBY A SENIOR STRATEGIST FOR FORD MOTOR CO FOR EXAMPLE THE RULES ON FOREIGN INVESTMENT SAY EXECUTIVES WILL PERMIT MORERATIONAL ECONOMIC CHOICES ABOUT WHERE TO PUT FACTORIES SOME EVEN TALK OF BRINGING BACK JOBS TO THE US RATHER THAN SENDING MORE PRODUCTION OVERSEAS THAT'S BECAUSE SOME OFFSHORE PLANTS WERE BUILT UNDER LAWS REQUIRING COMPANIES TO MANUFACTURE LOCALLY IN ORDER TO SELL LOCALLY THE NEW RULES MAKE IT HARDER FOR GOVERNMENTS TO ENFORCE SUCH DEMANDS FORD HONEYWELL INC AND HEWLETTPACKARD CO ARE AMONG THOSE THAT MIGHT ADJUST THEIR MANUFACTURING NETWORKS ACCORDINGLY INCLUDING GREATER USE OF THEIR US PLANTS FOR EXPORTS A DIVERSE GROUP OF BUSINESSES WELCOME THE TREATY'S NEW PROTECTION FOR INTELLECTUAL PROPERTY MEANING A COMPANY WON'T SEE PROPRIETARY ITEMS SO EASILY RIPPED OFF IT'S NOT SURPRISING THAT A HIGHTECH COMPANY LIKE HEWLETTPACKARD LIKES HOW THE TREATY RAISES THE THRESHOLD LEVEL OF PROTECTION AS A COMPANY EXECUTIVE PUTS IT YET THE ACCOUNTING FIRM ARTHUR ANDERSEN & CO FEELS THE SAME THESE RULES WILL HELP IT GUARD FOR EXAMPLE SOFTWARE USED IN TRAINING COURSES SUCH RULES SHOULD MAKE DOING BUSINESS ABROAD SAFER AND EASIER IF THEY'RE ENFORCED ALWAYS A PROBLEM HOWEVER THE NEW TRADING ORGANIZATION IS SUPPOSED TO PUNISH CHRONIC CHEATERS THE EFFORT TO ADD SERVICE INDUSTRIES MAY BE THE MOST IMPORTANT DEPARTURE FROM PAST AGREEMENTS BUT IT ISN'T OVER IF FINANCIAL SERVICES ARE INCLUDED MORE COMPANIES WILL EXPAND ABROAD IN NEW FIELDS FORD FOR EXAMPLE WANTS TO FINANCE DELIVERIES TO BOTH DEALERS AND CUSTOMERS WORLDWIDE SOMETHING NOW IMPOSSIBLE IN MANY COUNTRIES SUCH THINGS CAN MEAN A LOT TO THE US ECONOMY SERVICE EXPORTS LAST YEAR WERE 160 BILLION WITH A 60 BILLION TRADE SURPLUS CONTROVERSIAL BUT GENERALLY WELCOME ARE NEW RULES ABOUT HOW TO GOVERN THE PRACTICE OF DUMPING OR SELLING AT UNFAIRLY LOW PRICES SOME 40 NATIONS HAVE ANTIDUMPING LAWS AND SOME INCLUDING THE US USE THEM TO PROTECT DOMESTIC INDUSTRIES FROM OVERSEAS RIVALS THAT CAN'T BE STOPPED BY FAIRMARKET MEANS TO SOME DEGREE THE TREATY WILL MAKE SUCH LAWS LESS OPEN TO ABUSE AND CURTAIL PROTECTIONISM YET NOT COMPLETELY ACCORDING TO ONE TRADE SPECIALIST THE US GOT GATT NEGOTIATORS TO REVISE THE LEVEL AT WHICH ANTIDUMPING MEASURES CAN BE APPLIED THE INTENDED RESULT MORE PROTECTION FOR AMERICAN STEELMAKERS THE ACCIDENTAL RESULT MORE DIFFICULTY GETTING AMERICAN WHEAT INTO EUROPE UNDER OTHER TREATY TERMS INTENDED TO FREE THAT MARKET COMPANIES LIKE CARGILL INC AND CONTINENTAL GRAIN CO ARE SURE TO PROTEST DESPITE SUCH GLITCHES THE GENERAL REACTION REMAINS POSITIVE DOING BUSINESS WILL BE MORE PREDICTABLE AND RELIABLE AND FEW COMPANIES COMPLAIN WHEN RISK IS REDUCED 9401070142 940107 QUARTERLY MUTUAL FUNDS REVIEW GETTING STARTED INVESTORS ARE FLOCKING TO FUND COUSINS VARIABLE ANNUITIES BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL GONE ARE THE DAYS WHEN YOU COULD TALK ABOUT MUTUAL FUNDS WITHOUT MENTIONING THEIR TAXSHELTERED COUSINS VARIABLE ANNUITIES DESPITE THE HANDICAP OF A NAME THAT SOUNDS LIKE A GASTROINTESTINAL DISORDER VARIABLE ANNUITIES ARE SHAPING UP AS THE HOTTESTSELLING INVESTMENT OF THE '90S THE MARKET IS GROWING AT A RATE THAT MATCHES THE 1980S GROWTH OF MUTUAL FUNDS SAYS KURT CERULLI A BOSTON FINANCIALPRODUCTS CONSULTANT IN 1993 INVESTORS SHOVELED MORE THAN 40 BILLION INTO VARIABLE ANNUITIES UP FROM 23 BILLION IN 1992 SO WHAT ARE THESE FORBIDDINGLY NAMED CREATURES THEY ARE CALLED VARIABLE BECAUSE THEIR RETURNS ZIGZAG UNLIKE THE NEVERCHANGING YIELD OF A FIXED ANNUITY HERE IS A RUNDOWN OF THEIR PLUSES NOTABLY TAX DEFERRAL AND MINUSES FEES FEES FEES IN THE PAST INVESTORS WHO WANTED TO SHELTER EARNINGS ON MUTUAL FUNDS USUALLY WENT ONE OF TWO ROUTES THEY BOUGHT TAXFREE MUNICIPALBOND FUNDS OR THEY PUT MUTUAL FUNDS INTO AN IRA WHERE EARNINGS COULD GROW TAXDEFERRED NOW MANY ARE TURNING INSTEAD TO VARIABLE ANNUITIES ESPECIALLY IF THEY HAVE A BIG SUM TO SHELTER OR WANT TO TRADE STOCK FUNDS WITHOUT GENERATING AN IMMEDIATE BLIZZARD OF PAPERWORK AND TAXES WHILE VARIABLE ANNUITIES MAY SEEM MYSTERIOUS THEIR TAX ADVANTAGES ARE ALMOST IDENTICAL TO THOSE OF NONDEDUCTIBLE IRAS AS WITH AN IRA INVESTORS CAN OPEN A VARIABLE ANNUITY ACCOUNT AT MANY MUTUALFUND COMPANIES BROKERAGE FIRMS INSURANCE COMPANIES AND AT MANY BANKS UNLIKE WITH AN IRA THERE IS NO LIMIT ON CONTRIBUTIONS WHEN IT COMES TO INVESTING IRA INVESTORS CAN CHOOSE AMONG THE UNIVERSE OF MUTUAL FUNDS BUT VARIABLEANNUITY INVESTORS ARE LIMITED TO THE FUNDS OFFERED WITHIN THE VARIABLEANNUITY ACCOUNT THE AVERAGE NUMBER OFFERED IS SEVEN THEY ALSO HAVE ACCESS TO A CDLIKE ACCOUNT THAT PAYS A FIXED RATE OF RETURN WITH VARIABLE ANNUITIES AS WITH IRAS INVESTORS CAN SWITCH THEIR MONEY AMONG THE FUNDS WITHOUT TRIGGERING TAXES AND EARNINGS ARE TAXDEFERRED UNTIL TAKEN OUT WHEN THEY ARE TAXED AS REGULAR INCOME AS WITH AN IRA INVESTORS CAN TAKE THEIR MONEY OUT IN A LUMP SUM AT ANY POINT THEY PAY INCOME TAXES ON THE EARNINGS PLUS A 10 PENALTY IF THEY ARE UNDER AGE 59 1/2 OR THEY CAN TAKE A SYSTEMATIC WITHDRAWAL BASED ON THEIR LIFE EXPECTANCY THE INVESTMENT OPTIONS WITHIN VARIABLE ANNUITIES ARE IN ESSENCE A HALFDOZEN OR MORE MUTUAL FUNDS THIS MAY NOT BE APPARENT TO PEOPLE INITIALLY BECAUSE THE VOCABULARY IS DIFFERENT THE WORD MUTUAL FUND BECOMES SUBACCOUNT IN A VARIABLE ANNUITY AND MUTUAL FUND INVESTORS ACQUIRE SHARES WHILE VARIABLEANNUITY INVESTORS HAVE ACCUMULATION UNITS DON'T COUNT ON SEEING A CHANGE IN THIS TERMINOLOGY SOON THE INDUSTRY ISN'T EAGER FOR TAXHUNGRY REGULATORS TO FOCUS ON HOW OFTEN INVESTORS VIEW THESE PRODUCTS AS TAX SHELTERS RATHER THAN AS THE RETIREMENTSAVINGS PLANS THEY WERE INTENDED TO BE MOREOVER POINTING OUT THE SIMILARITIES TO MUTUAL FUNDS WOULD INVITE INVESTORS TO COMPARE ANNUITIES WITH MUTUAL FUNDS WHICH ARE EASIER TO GET OUT OF AND TYPICALLY LESS EXPENSIVE DESPITE ALL THE GOBBLEDYGOOK THE MECHANICS OF THE SYSTEM ARE ALMOST IDENTICAL TO MUTUAL FUNDS SAYS MR CERULLI INVESTORS CAN MAKE PERIODIC CONTRIBUTIONS OR PUT IN A LUMP SUM THEY CAN SWITCH FUNDS WITH LIMITS ON FREQUENCY THE MINIMUM INITIAL PURCHASE TYPICALLY RANGES FROM 1000 TO 5000 JUST AS WITH MUTUAL FUNDS THE CLOSING PRICES OF THE SECURITIES IN THE FUNDS AT A GIVEN TIME DETERMINE THE VALUE FOR HOLDERS THE OVERALL VALUE OF THE PORTFOLIO DIVIDED BY THE NUMBER OF ACCUMULATION UNITS DETERMINES THE PRICE FOR THE PURCHASE DESPITE THE SIMILARITY TO NONDEDUCTIBLE IRAS AND MUTUAL FUNDS VARIABLE ANNUITIES AREN'T THE SAME AS OWNING MUTUAL FUNDS AND HAVE A FEW KEY DIFFERENCES THAT MAKE THEM UNDESIRABLE FOR MANY INVESTORS FOR ONE THING VARIABLE ANNUITIES ARE LESS EASY TO SHED THAN MUTUAL FUNDS MOST COME WITH SURRENDER CHARGES THAT START AT 7 AND DECLINE TO ZERO ONLY OVER A PERIOD OF YEARS AND BECAUSE THEY BEHAVE LIKE IRAS IF YOU TAKE MONEY OUT BEFORE AGE 59 1/2 YOU'LL PAY A 10 TAX PENALTY IN ADDITION TO INCOME TAXES FURTHERMORE THE TAX ADVANTAGE MAY NOT BE ALL IT'S CRACKED UP TO BE FEW INSURANCE AGENTS OR BROKERS EXPLAIN TO PEOPLE THAT ALL OF THE EARNINGS IN A VARIABLE ANNUITY ARE GOING TO BE TAXED AS INCOME IN CONTRAST CAPITAL GAINS GENERATED IN A MUTUAL FUND ARE TAXED AT THE LOWER 28 CAPITALGAINS RATE BUT PERHAPS THE CRUCIAL DOWNSIDE TO VARIABLE ANNUITIES IS THE HIGHER FEE LEVEL VARIABLE ANNUITIES HAVE ANNUAL INSURANCECOMPANY FEES THAT AVERAGE 127 ANNUALLY SOME OF THE NEWER PRODUCTS ARE CHARGING 140 OR MORE THIS IS IN ADDITION TO THE ANNUAL INVESTMENT MANAGEMENT FEES WHICH AVERAGE 073 FOR US STOCK FUNDS ENSCONCED IN VARIABLE ANNUITIES TOTAL FEES IN VARIABLE ANNUITIES WITH HIGHERTHANAVERAGE FUND AND INSURANCE EXPENSES CAN EASILY TOP 25 A YEAR THOSE FEES CAN BE QUITE A DRAG ON RETURNS IN THE CASE OF A FUND WITH BONDS YIELDING 6 FOR INSTANCE A TOTAL OF 25 IN ANNUAL VARIABLEANNUITY FEES WOULD EAT UP MORE THAN 40 OF THE ANNUAL YIELD SUCH ADDED EXPENSES ERASE THE ADVANTAGE OF THE TAXDEFERRAL FOR AT LEAST A DECADE AND INVESTORS WHO PUT THEIR MONEY INTO BOND FUNDS MONEYMARKET FUNDS AND FIXEDRETURN ACCOUNTS WHICH TEND TO HAVE LOWER RETURNS THAN STOCK FUNDS OVER TIME COULD WAIT 20 YEARS OR MORE BEFORE THE ADVANTAGE OF THE TAXDEFERRAL GIVES THEM A HIGHER RETURN THAN THEY WOULD HAVE RECEIVED IN A TAXABLE MUTUAL FUND ASSUMING SIMILAR PERFORMANCE HOWEVER THE INSURANCE EXPENSES DO PAY FOR VARIABLEANNUITY FEATURES THAT IRAS DON'T HAVE WHICH MAY APPEAL TO SOME INVESTORS SUCH AS THE GUARANTEED DEATH BENEFIT THIS GUARANTEES THAT IF AN INVESTOR DIES THE BENEFICIARY WILL RECEIVE NO LESS THAN THE ORIGINAL AMOUNTS THE INVESTOR PUTS INTO THE ACCOUNT OVER TIME MINUS WITHDRAWALS IF AN INVESTOR PUT 50000 INTO AN ACCOUNT AND HE LOSES MONEY AND DIES HIS HEIR WOULD RECEIVE THE FULL 50000 OF COURSE IF HIS FUNDS PERFORMED WELL THE HEIR WOULD RECEIVE THE 50000 PLUS THE EARNINGS TO THAT POINT SOME INVESTORS MISTAKENLY BELIEVE THAT THE GUARANTEED DEATH BENEFIT PROVIDES LIFE INSURANCE IT DOESN'T OR PROTECTS THEM FROM LOSS IT DOESN'T IF YOU LIVE YOU CAN LOSE MONEY IN VARIABLE ANNUITY FUNDS THE SAME WAY YOU LOSE MONEY IN FUNDS IN YOUR IRA OR ELSEWHERE IN ADDITION VARIABLE ANNUITY INVESTORS CAN USE THE ANNUITY OPTION WHEN THEY DECIDE TO TAKE THE MONEY OUT OF THEIR ACCOUNT IN RETIREMENT BASED ON THEIR LIFE EXPECTANCY AND THE SIZE OF THEIR BALANCE THE INSURANCE COMPANY PAYS OUT A STREAM OF MONEY FROM THE ACCOUNT THAT IS INTENDED TO LAST FOR THE INVESTOR'S LIFETIME IF YOU DON'T NEED THESE FEATURES A VARIABLE ANNUITY MAY NOT MAKE SENSE SHOULD YOU DECIDE THAT YOU WANT THE ABILITY TO RECEIVE YOUR SAVINGS WHEN YOU RETIRE IN ANNUITY PAYMENTS YOU COULD ALWAYS WAIT TO BUY AN ANNUITY AT THAT TIME SIMILARLY IF YOU WANT TO RECEIVE THE MONEY IN YOUR IRA IN ANNUITY PAYMENTS YOU WOULD HAVE TO SET UP AN ANNUITY ACCOUNT WITHIN YOUR IRA WHEN THE TIME COMES BECAUSE OF COST AND ILLIQUIDITY VARIABLE ANNUITIES MAKE SENSE ONLY FOR INVESTORS WHO HAVE MAXED OUT THE CONTRIBUTIONS THEY CAN MAKE TO IRAS AND COMPANY RETIREMENT PLANS WHO FULLY INTEND TO LEAVE THEIR MONEY INTACT FOR AT LEAST A DECADE AND WHO ARE WILLING TO PUT THEIR MONEY INTO FUNDS THAT PROVIDE THE POTENTIAL FOR HIGHER RETURNS WHEN USED AS A GROWTH VEHICLE THE TAXDEFERRAL OUTWEIGHS THE COSTS FOR LONGTERM INVESTORS SAYS MR CERULLI IF AN ANNUITY MAKES SENSE COMPARE FEES PERFORMANCE AND FEATURES START BY GETTING SALES LITERATURE FROM AT LEAST FIVE COMPANIES AND ASK FOR TOTAL RETURNS OVER THREE YEARS LONGER IF AVAILABLE AFTER ALL EXPENSES HAVE BEEN DEDUCTED A USEFUL PUBLICATION THAT CONTAINS THIS INFORMATION ON MOST ANNUITIES IS MORNINGSTAR'S VARIABLE ANNUITY REPORT 8008765005 A SINGLE ISSUE IS 15 A FEW NOLOAD MUTUAL FUND COMPANIES SELL ANNUITIES DIRECTLY TO CONSUMERS RATHER THAN THROUGH BROKERS OR AGENTS WHICH RESULTS IN LOWER COSTS FIDELITY INVESTMENTS' FIDELITY RETIREMENT RESERVES SCUDDER STEVENS & CLARK'S SCUDDER HORIZON AND VANGUARD GROUP'S VARIABLE ANNUITY PLAN HAVE ANNUAL INSURANCE EXPENSES OF 100 063 AND 055COMPARED WITH AN AVERAGE OF 127 IN ADDITION VANGUARD AND SCUDDER ALSO HAVE LOWERTHANAVERAGE FUND EXPENSES AND NO SURRENDER CHARGES THUS THE TOTAL ANNUAL COSTS FOR A US STOCK FUND IN THESE THREE ANNUITIES ARE 175 AT FIDELITY 133 AT SCUDDER AND 098 AT VANGUARD 9401070141 940107 TAIWAN'S SEC SEEKS TO RAISE THE CEILING ON FOREIGN INVESTING SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN TAIWAN'S SECURITIES AND EXCHANGE COMMISSION PROPOSED TO RAISE THE CEILING OF FOREIGN INVESTMENTS TO 12 BILLION FROM 5 BILLION SEC CHAIRMAN DAY LININ SAID HE STRONGLY SUPPORTED THE PLAN OF OPENING TAIWAN'S MARKET WIDER TO FOREIGN INSTITUTIONAL INVESTORS THE LATEST PROPOSED CEILING OF 12 BILLION ROUGHLY 10 OF MARKET VALUE OF TAIWAN'S LISTED SHARES COMPARED WITH THE SEC'S PROPOSAL LAST MONTH TO DOUBLE THE CEILING TO 10 BILLION THE NEW TAIWAN DOLLAR APPRECIATED ABOUT 131 IN THE PAST THREE MONTHS MUCH LOWER THAN OTHER MAJOR CURRENCIES MR DAY SAID MR DAY MADE THE REMARKS FOLLOWING AN ASIAN WALL STREET JOURNAL REPORT YESTERDAY THAT TAIWAN'S CENTRAL BANK IS SLOWING THE FLOW OF FOREIGN CAPITAL INTO THE COUNTRY'S BOOMING STOCK MARKET OVER CONCERNS ABOUT RECENT APPRECIATION OF THE LOCAL CURRENCY AT THE END OF 1993 FOREIGN INSTITUTIONS HAD REMITTED ABOUT 27 BILLION INTO TAIWAN FOR EQUITY INVESTMENTS EIGHTEEN FOREIGN INSTITUTIONS ARE AWAITING APPROVAL TO INVEST SOME 136 BILLION IN TAIWAN ON THE FOREIGNEXCHANGE MARKET THE US DOLLAR ENDED SLIGHTLY WEAKER AT 265690 NT DOLLARS IN HEAVY TRADING YESTERDAY DEALERS SAID THE CENTRAL BANK BOUGHT ABOUT 80 MILLION TO PREVENT A SHARP RISE OF THE NT DOLLAR 9401070140 940107 INTERNATIONAL METALLGESELLSCHAFT REVISES ITS LOSSES SHARPLY UPWARD BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT METALLGESELLSCHAFT AG SAID IT IS SADDLED WITH A CUMULATIVE 33 BILLION MARKS 19 BILLION IN EXISTING AND POTENTIAL LOSSES NEARLY 10 TIMES THE ORIGINAL LOSS REPORTED FOR THE MOST RECENT FISCAL YEAR BY PREVIOUS MANAGEMENT KAJO NEUKIRCHEN THE COMPANY'S NEW CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THE COMPANY WOULD BE FORCED INTO INSOLVENCY PROCEEDINGS UNLESS BANK CREDITORS FORMALLY APPROVE A 32 BILLIONMARK RESCUE PACKAGE BY A JAN 12 DEADLINE METALLGESELLSCHAFT REVISED ITS LOSS FOR THE FISCAL YEAR ENDED SEPT 30 1993 TO SHOW A DEFICIT OF NEARLY 18 BILLION MARKS COMPARED WITH ITS ORIGINAL REPORT OF A 347MILLIONMARK LOSS IN ADDITION THE COMPANY SAID IT STANDS TO SHOW LOSSES OF AS MUCH AS AN ADDITIONAL 15 BILLION MARKS FROM EXPOSURE IN OIL MARKETS MR NEUKIRCHEN CLAIMED THAT THE COMPANY'S EXTREME FINANCIAL PROBLEMS COULDN'T BE OVERCOME BY CAPITAL INCREASES ALONE HE SAID THE COMPANY WOULD HAVE TO REDUCE LABOR COSTS BY BETWEEN 600 MILLION AND 700 MILLION MARKS THROUGH STAFF CUTS AND DIVESTITURES AFTER DROPPING 38 IN VALUE SINCE MIDNOVEMBER METALLGESELLSCHAFT'S STOCK WAS SUSPENDED FROM TRADING YESTERDAY A DAY AFTER THE COMPANY SAID IT WON A POSITIVE RESPONSE FROM BANK CREDITORS FOR ITS PLAN TO AVERT INSOLVENCY THAT PLAN ENVISIONS RAISING 14 BILLION MARKS IN NEW EQUITY AND A 13 BILLION MARK DEBTFOREQUITY SWAP BY THE BANKS WHICH ALSO ARE BEING ASKED FOR A FRESH 500 MILLION MARK CREDIT LINE A GERMAN BANKER INVOLVED IN THE TALKS SAID METALLGESELLSCHAFT'S TOP FIVE BANK CREDITORS ARE DEUTSCHE BANK BAYERISCHE LANDESBANK CREDIT LYONNAIS OF FRANCE NORDDEUTSCHE LANDESBANK AND SOCIETE GENERALE OF FRANCE 9401070139 940107 QUARTERLY MUTUAL FUNDS REVIEW THESE FUND INVESTORS LOOK TO A HIGHER POWER BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL IS THIS INVESTING FOR THE PROPHET OR THE PROFIT INVESTORS ARE BEING OFFERED AN INCREASING NUMBER OF MUTUAL FUNDS WITH TIES TO RELIGIOUS GROUPS AND THESE FUNDS ARE DOING FAIRLY WELL FOR INVESTORS FIRE AND BRIMSTONE TEND TO MOTIVATE A LOT OF PEOPLE AND THERE'S NO BETTER SALESMAN OR SALES TOOL THAN THE PULPIT SAYS LOUIS HARVEY PRESIDENT OF DALBAR FINANCIAL SERVICES A BOSTON FUNDRESEARCH FIRM IT'S JUST ANOTHER WAY TO GET THE MESSAGE OUT TWO NEW FUNDS RECENTLY HIT THE MARKET DALLASBASED AQUINAS FUNDS A SUBSIDIARY OF THE CATHOLIC FOUNDATION AND MMA PRAXIS MUTUAL FUNDS AN OFFSHOOT OF MENNONITE MUTUAL AID IN GOSHEN IND BUT THERE ARE SOME LUTHERANS AND MUSLIMS WHO HAVE BEEN IN THE MUTUALFUND BUSINESS FOR A LONG TIME THE MINNEAPOLISBASED LUTHERAN BROTHERHOOD FIRST OFFERED A MUTUAL FUND 23 YEARS AGO AND THE AAL MUTUAL FUNDS ASSOCIATED WITH THE AID ASSOCIATION FOR LUTHERANS IN APPLETON WIS FIRST SOLD SHARES IN 1987 FOR INVESTORS ADHERING TO ISLAMIC PRINCIPLES THERE'S THE SEVENYEAROLD AMANA MUTUAL FUNDS TRUST'S INCOME FUND WHICH AS IT HAPPENS IS MANAGED BY AN EPISCOPALIAN MOST OF THESE MUTUAL FUNDS AREN'T JUST IN THE BUSINESS OF INVESTING FOR A PROFIT MANY FOLLOW STRICT RULES OF SOCIALLY RESPONSIBLE INVESTING THAT COMPLY WITH THEIR RELIGIOUS BELIEFS TO HELP PRESERVE PEACE THE MENNONITE'S MMA PRAXIS FUNDS FOR INCOME AND FOR GROWTH BOTH ARE RESTRICTED FROM INVESTING IN MILITARY CONTRACTORS AND ARMSPRODUCTION COMPANIES TREASURY BONDS WHICH COULD BE USED TO FINANCE MILITARY OPERATIONS ALSO ARE BANNED BONDS ARE BLASPHEMOUS FOR THE MUSLIMS TOO FOR VERY DIFFERENT REASONS IN ACCORDANCE WITH ISLAMIC PRINCIPLES INVESTORS CAN'T RECEIVE ANY INTEREST FROM LOANTYPE AGREEMENTS SO BANK STOCKS ARE OFF LIMITS AND THE FUND CAN'T HOLD ANY ENTERTAINMENT COMPANIES THAT HAVE XRATED BUSINESS BUT THE MUSLIMS ARE FREE TO OWN MILITARYRELATED STOCKS BOTH THE MUSLIM AND THE MENNONITE MUTUAL FUNDS CAN'T HAVE GAMBLING OR ALCOHOL INVESTMENTS THE MENNONITES ALSO SHUN TOBACCO STOCKS I'M SURE SOME MENNONITES SMOKE AND DRINK SAYS JB MILLER VICE PRESIDENT OF MENNONITE MUTUAL AID BUT THE OFFICIAL STANCE IS TO TEACH AGAINST IT SO WE DON'T BUY THE STOCKS PRAXIS MUTUAL FUNDS HAVE A BACKEND SALES CHARGE OR LOAD OF 5 IF INVESTORS WITHDRAW WITHIN THE FIRST YEAR THE LOAD DECLINES ONE PERCENTAGE POINT EVERY YEAR UNTIL THERE IS NO CHARGE ANNUAL MANAGEMENT FEES ARE 11 FOR THE INCOME FUND AND 175 FOR THE GROWTH FUND THE CATHOLICS' AQUINAS FUNDS DON'T HAVE ANY INDUSTRYWIDE TYPE OF PROHIBITIONS THESE FUNDS COULD EVEN HOLD SHARES IN A DRUG COMPANY THAT MIGHT HAVE A CONTRACEPTIVE PRODUCT WHICH IS AGAINST CATHOLIC TEACHING SAYS BERNARD DIFIORE EXECUTIVE DIRECTOR OF THE CATHOLIC FOUNDATION IF THE FUNDS OWN STOCK IN A COMPANY THAT IS AGAINST CATHOLIC BELIEFS HOWEVER INVESTORS AND OFFICERS OF THE FUND WILL SEND FORMAL PETITIONS TO COMPANY OFFICIALS WE THINK WE CAN ACCOMPLISH MORE BY TELLING MANAGEMENT RATHER THAN AVOIDING INVESTMENTS MR DIFIORE SAYS THE LUTHERANS DON'T HAVE AN OFFICIAL LIST OF INVESTING RESTRICTIONS BUT AS A PRIVATE POLICY THE MANAGERS DON'T INVEST IN GAMBLING AND TOBACCO STOCKS OR COMPANIES WHOSE PRIMARY BUSINESS INVOLVES ALCOHOL SAYS JIM WALLINE HEAD OF LUTHERAN BROTHERHOOD'S MUTUAL FUNDS WHILE SEVERAL OF THE FUNDS ARE OPEN TO INVESTORS FROM ANY RELIGION SOME HAVE CONSTRAINTS ON WHO CAN INVEST FOR EXAMPLE THE LUTHERAN BROTHERHOOD A FRATERNAL ORGANIZATION MARKETS EXCLUSIVELY TO LUTHERANS RELIGION ASIDE THESE FUNDS HAVE A LOT IN COMMON ALL HAVE A RELATIVELY LOWRISK APPROACH TO INVESTING AND AVERAGE TO ABOVEAVERAGE RETURNS ANALYSTS SAY THERE IS NO REASON WHY A WELLMANAGED FUND OF THIS VARIETY COULDN'T BE A COMPETITIVE PRODUCT SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER SKEPTICS SAY THAT THE INVESTING IS LIMITED BUT THE EVIDENCE OR PERFORMANCE ISN'T CONCLUSIVE ONE WAY OR THE OTHER IN 1993 THE AMANA INCOME FUND WAS UP 116 AND OVER FIVE YEARS THE FUND HAS SHOWN AN ANNUAL RETURN OF 996 THE FUND'S 105 MILLION IN ASSETS ARE SPREAD AMONG MORE THAN A FEW DOZEN STOCKS IT HOLDS LARGE POSITIONS IN WASHINGTON WATER POWER USXUS STEEL GROUP ARCO CHEMICAL AND PACIFIC TELESIS GROUP IT'S A NOLOAD FUND WITH ANNUAL OPERATING EXPENSES OF 158 OUR BIGGEST LIMITATION IS NOT BEING ABLE TO BUY BANK STOCKS AND INSURANCE STOCKS SAYS NICHOLAS KAISER THE FUND'S MANAGER AND PRESIDENT OF SATURNA CAPITAL CORP IN BELLINGHAM WASH WHICH ACTS AS THE ADVISER THE AMANA MUTUAL FUNDS TRUST HAS PLANS TO OFFER A GROWTH PORTFOLIO WHICH WILL INVEST MORE IN TECHNOLOGY AND MEDICALRELATED STOCKS OUR GOAL ISN'T TO BE NO 1 MR KAISER SAYS IT'S TO GET A GOOD DECENT RETURN AND GIVE MUSLIMS A WAY TO INVEST ACCORDING TO THE KORAN MR KAISER CONSULTS WITH NORTH AMERICAN ISLAMIC TRUST WHOSE MEMBERS HOLD SOME SPOTS ON THE FUND'S BOARD TO ENSURE THE FUND MEETS THE FAITH'S REQUIREMENTS AMONG THE LUTHERAN BROTHERHOOD'S FAMILY OF SIX FUNDS THE LUTHERAN BROTHERHOOD FUND HOLDING 525 MILLION IN ASSETS WAS UP 87 IN 1993 AND 1364 ANNUALLY FOR THE PAST FIVE YEARS THIS FUND HAS A LOAD OF 5 AND ANNUAL EXPENSES OF 11 AAL CAPITAL GROWTH FUND WAS UP 61 FOR 1993 AND HAS AN ANNUAL AVERAGE RETURN OF 138 FOR THE PAST FIVE YEARS AAL MUTUAL FUNDS WHICH LIKE MANY SIMILAR FUNDS HAS MONEY MANAGERS OUTSIDE THE RELIGIOUS ORGANIZATION PICKING THE INVESTMENTS CURRENTLY OFFERS FIVE DIFFERENT FUNDS SMALL STOCKS CAPITAL GROWTH BONDS MUNICIPAL BONDS AND MONEYMARKET INSTRUMENTS THE FUNDS HAVE A LOAD OR UPFRONT SALES CHARGE FEE OF 475 AND OPERATING EXPENSES RANGING FROM 1 TO 2 DEPENDING ON THE FUND THE CATHOLICS ALREADY ARE MANAGING MONEY FOR NONPROFIT GROUPS WITH SOME SUCCESS THE CATHOLIC FOUNDATION'S MR DIFIORE SAYS THE 100 MILLION IN THE CATHOLIC COMMON TRUST FUND FOR NONPROFIT ORGANIZATIONS HAS BEEN MANAGED IN THREE DIFFERENT AREAS EQUITY INCOME GROWTH STOCKS AND FIXED INCOMESIMILAR AREAS WHERE THE NEW FUNDS WILL INVEST THE TRUST'S OUTSIDE MANAGERS PRODUCED A RETURN OF 139 FOR 1993 AQUINAS FUNDS HAS NO LOAD BUT HAS ANNUAL OPERATING EXPENSES RANGING FROM 1 TO 165 ANY PROFITS FROM THE FEES WILL BE DONATED TO THE CATHOLIC FOUNDATION TO BE DISTRIBUTED TO CHARITABLE ORGANIZATIONS MENNONITE MUTUAL AID ALSO HAS BEEN MANAGING MONEY FOR NONPROFIT ORGANIZATIONS FOR A LONG TIME AND SPECIFICALLY SET UP THE FUNDS AFTER RECEIVING REQUESTS ASKING FOR INVESTMENT ADVICE MENNONITE MUTUAL AID REPORTS THAT ITS STOCK PORTFOLIO HAS HAD A COMPOUNDED ANNUAL RATE OF RETURN OF 1716 IN THE PAST EIGHT YEARS I DON'T WANT TO GIVE THE IMPRESSION THAT THE NUNS HAVE A LOT OF MONEY UNDER THEIR MATTRESSES SAYS MR DIFIORE FROM THE CATHOLIC FOUNDATION BUT THERE ARE A LOT OF MEMBERS OF THESE ORGANIZATIONS THAT LIKE THE WAY WE'VE INVESTED AND WANT TO BE INVOLVED PERSONALLY 9401070138 940107 EXGREEK ACTRESS TAKES UP THE ISSUE OF EUROPEAN FILMS BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL ATHENS GREECE NEGOTIATORS FROM 117 COUNTRIES EVENTUALLY DECIDED TO SIDESTEP THE EMOTIONAL ISSUE OF FILMS IN THE JUSTCOMPLETED WORLD TRADE TALKS BUT A FORMER ACTRESS SAID SHE HAS NO INTENTION OF LETTING THE ISSUE DIE MELINA MERCOURI THE CULTURE MINISTER IN THE NEWLY RETURNED GREEK SOCIALIST GOVERNMENT SAID SHE HAS GREAT CONCERNS THAT EUROPE'S AUDIOVISUAL SECTOR COULD FACE NEW ASSAULTS FROM THE US OR ELSEWHERE DESPITE THE DECISION TO EXCLUDE THAT INDUSTRY FROM THE URUGUAY ROUND OF TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE US AND EUROPEAN UNION FORMERLY CALLED THE EUROPEAN COMMUNITY CLASHED DURING THE TRADE TALKS OVER QUOTAS AND LEVIES ON US FILMS IN EUROPE EUROPE BELIEVES ITS PROTECTION OF THE INDUSTRY IS VITAL TO PRESERVE COUNTRIES' CULTURAL IDENTITY THIS IS A QUESTION THAT COULD POP UP AGAIN IN FOUR OR SIX YEARS MS MERCOURI KNOWN FOR THE MOVIE NEVER ON SUNDAY TOLD JOURNALISTS IT WORRIES ME THAT WE DON'T HAVE ANYTHING FINAL SHE SAID THAT GREECE WHICH ASSUMED THE ROTATING EU PRESIDENCY ON JAN 1 PLANNED TO CALL A SPECIAL APRIL MEETING OF EU OFFICIALS RESPONSIBLE FOR CULTURAL ISSUES TO DISCUSS THE EUROPEAN FILM INDUSTRY'S FUTURE WE MUST SHOW THE WORLD THAT THERE ARE OUTSTANDING FILM DIRECTORS IN EUROPE SHE SAID IT IS NOT PERMISSIBLE TO ALLOW THE EUROPEAN FILM INDUSTRY TO DIE AND IT IS NOT GOING TO DIE THE MINISTER SAID THERE WERE NO SECRET WEAPONS TO REVERSE THE EUROPEAN FILM INDUSTRY'S SAGGING FORTUNES BUT PLEDGED TO PROPOSE AN EU PROGRAM THAT WOULD ENCOURAGE SOME CINEMAS IN LARGE CITIES TO RESERVE THEIR SCREENS FOR EUROPEANMADE FILMS RATHER THAN US BLOCKBUSTERS SUCH AS JURASSIC PARK THE EUROPEAN COMMISSION WHICH IS PREPARING A STUDY PAPER ON THE FILM INDUSTRY IS LEANING TOWARD A SIMILAR SUBSIDY SCHEME IN ADDITION MS MERCOURI CALLED FOR MORE CINEMATIC COPRODUCTIONS AMONG SEVERAL EUROPEAN COUNTRIES ALTHOUGH MANY FILM CRITICS SAY THE RECORD OF SUCH PRODUCTIONS TO DATE HAS BEEN POOR BY INVOLVING SEVERAL COUNTRIES THE CRITICS SAY THE FILMS OFTEN FAIL TO PRESENT AN ACCURATE PICTURE OF ANY OF THOSE NATIONS 9401070137 940107 EMPLOYERS CASUALTY TEXAS INSURANCE FIRM IS DECLARED INSOLVENT AUSTIN TEXAS AP EMPLOYERS CASUALTY CO A DALLASBASED INSURANCE COMPANY WITH OPERATIONS NATIONWIDE WAS DECLARED INSOLVENT IN THE SECONDLARGEST PROPERTYCASUALTY COMPANY FAILURE IN TEXAS HISTORY EMPLOYERS CASUALTY WAS PLACED INTO TEMPORARY RECEIVERSHIP BY STATE DISTRICT JUDGE JEANNE MEURER HERE WHO ORDERED THE COMPANY'S BANK ACCOUNTS FROZEN THE TEXAS PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION WILL ASSUME RESPONSIBILITY FOR PAYING TEXANS' COVERED CLAIMS THE TEXAS DEPARTMENT OF INSURANCE SAID POLICYHOLDERS OUTSIDE TEXAS ARE PROTECTED BY GUARANTY ASSOCIATIONS OF THE STATES WHERE THEY LIVE THE DEPARTMENT SAID EMPLOYERS CASUALTY OPERATED IN 49 STATES AND SEVERAL FOREIGN COUNTRIES NATIONWIDE THE COMPANY'S 18900 OPEN CLAIMS TOTAL 343 MILLION IN NET EXPOSURE WHICH IS UNPAID CLAIMS MINUS FUNDS DEPOSITED WITH STATE INSURANCE REGULATORS AS SECURITY TEXAS ACCOUNTS FOR 82 OF THE TOTAL WORKERS' COMPENSATION ACCOUNTED FOR ABOUT HALF OF EMPLOYERS CASUALTY'S BUSINESS THE COMPANY ALSO SOLD GENERALLIABILITY PRIVATE PASSENGER AND COMMERCIAL AUTOLIABILITY MEDICALMALPRACTICE AND HOMEOWNERS INSURANCE ON MARCH 9 1992 THE COMPANY WAS PLACED IN CONSERVATORSHIP AND PROHIBITED FROM WRITING NEW POLICIES IT HALTED POLICY RENEWALS AFTER A ONEYEAR PERIOD WHILE EMPLOYERS CASUALTY WAS IN CONSERVATORSHIP MANAGEMENT HIRED BY A COURTAPPOINTED OFFICIAL REDUCED THE COMPANY'S STAFF TO 320 FROM 1200 AND SOUGHT INFUSIONS OF CAPITAL TO REVIVE THE COMPANY THOSE EFFORTS FAILED HOWEVER LEADING TO THE DECISION TO SEEK RECEIVERSHIP THE TEXAS INSURANCE DEPARTMENT SAID THE FAILURE OF THE COMPANY RANKS SECOND IN SIZE IN TEXAS TO THE 1991 INSOLVENCY OF TEXAS EMPLOYERS INSURANCE ASSOCIATION 9401070136 940107 QUARTERLY MUTUAL FUNDS REVIEW NONPROFIT HOSPITAL WORKERS CAN MOVE ASSETS NEW YORK HERE'S A TIP FOR MUTUALFUND INVESTORS WHO TEACH OR WORK FOR NONPROFITS AND HOSPITALS IF YOU HAVE A 403B PLAN YOU MAY BE ABLE TO MOVE YOUR ACCUMULATED ASSETS OUT OF IT TO THE MUTUALFUND COMPANY OF YOUR CHOICE YOU CAN DO THIS EVEN IF YOU DON'T CHANGE JOBS AND EVEN IF THE MUTUALFUND COMPANY YOU WANT TO PUT YOUR MONEY INTO ISN'T ON THE LIST APPROVED BY YOUR SCHOOL DISTRICT OR EMPLOYER THE CATCHES YOU CAN TRANSFER ONLY YOUR ACCUMULATED SAVINGS ALREADY IN THE ACCOUNT NOT NEW MONEY YOU MAY HAVE TO PAY SURRENDER PENALTIES WHICH MOST ANNUITIES IMPOSE AND IF YOUR EMPLOYER HAS PUT MONEY INTO YOUR ACCOUNT THE DEAL IS OFF TO MAKE A TAXFREE TRANSFER YOU MERELY CONTACT THE MUTUALFUND COMPANY OR BROKERAGE FIRM AT WHICH YOU WANT TO OPEN A 403B7 CUSTODIAL TRANSFER ACCOUNT IT WILL SEND YOU AN APPLICATION AND WILL ARRANGE THE TRANSFER WHY MOVE THE MONEY TO GET BETTER RETURNS LOWER FEES AND MORE CONTROL OVER YOUR MONEY BEFORE DECIDING COMPARE THE TOTAL ANNUAL FEES AND PERFORMANCE OF THE ANNUITIES WHERE YOUR 403B MONEY CURRENTLY LIVES WITH THOSE OF THE MUTUAL FUNDS TO WHICH YOU ARE CONSIDERING SWITCHING ONE TACK GET THE VARIABLE ANNUITY PERFORMANCE REPORT AND THE MUTUAL FUND PERFORMANCE REPORT 15 EACH FROM MORNINGSTAR INC 8008765005 9401070135 940107 POLITICS & POLICY TALBOTT'S ABIDING PASSION FOR RUSSIA SHAPES HIS CAREER AND CLINTON ADMINISTRATION'S POLICY BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STROBE TALBOTT WAS ALWAYS ONE OF THE ANOINTED IN 1967 WHEN NEW YORK TIMES COLUMNIST JAMES RESTON WANTED TO EXPLAIN THE AMERICAN ELITE'S INCREASING DISCOMFORT WITH THE WAR IN VIETNAM HE VISITED YALE AND INTERVIEWED AN EARNEST 21YEAROLD JUNIOR THE STROBE TALBOTTS AT YALE MR RESTON WOULD WRITE MIGHT NOT BE MARCHING BUT THEIR SOLEMN AND CLEANCUT DISSENT MAY BE MUCH MORE IMPORTANT THAN THE SIGNCARRYING PROTESTERS ON THE FRONT PAGE BUT IT WAS THREE YEARS LATER IN A SPARELY FURNISHED ROW HOUSE IN OXFORD ENGLAND THAT HIS LIFE COURSE WAS FIRMLY SET MR TALBOTT TOILED THERE IN THE PREDAWN HOURS SECRETLY TRANSLATING THE MEMOIRS OF OUSTED SOVIET LEADER NIKITA KHRUSHCHEV SUSTAINED BY SCRAMBLED EGGS AND TEA COOKED UP BY HIS HOUSEMATE BILL CLINTON MR TALBOTT'S DRIVE AND THAT RHODES SCHOLAR FRIENDSHIP HAS WON HIM A POWERFUL PLACE IN THE CLINTON ADMINISTRATION FIRST AS THE TOP RUSSIA STRATEGIST AND SOON AS THE NO 2 AT THE STATE DEPARTMENT MANY IN WASHINGTON SEE HIM AS THE SECRETARY OF STATE IN WAITING BUT IT IS RUSSIA THAT HAS BEEN MR TALBOTT'S PASSION LIFE'S WORK AND MAGNIFICENT OBSESSION SINCE HE WAS A TEENAGER HE HAS PORED OVER RUSSIAN POETRY FOR TWO DECADES HE HAS WRITTEN ABOUT THE WORST AND BEST OF USRUSSIAN RELATIONS HE TOOK HIS FAMILY CAMPING IN SIBERIA AND DESPITE THE RUINOUS LEGACY OF COMMUNISM HE IS CONVINCED THAT DEMOCRACY CAN SUCCEED IN RUSSIA THOUGH IT NEVER HAS BEFORE THAT CONVICTION HAS HAD A POWERFUL EFFECT ON PRESIDENT CLINTON WHO HAS INVESTED HUGE AMOUNTS OF CASH AND PRESTIGE IN RUSSIA AND ITS PRESIDENT BORIS YELTSIN AND CONTINUES TO INVEST DESPITE SUCH SETBACKS AS THE STRONG SHOWING BY RUSSIAN FASCISTS AND COMMUNISTS IN DECEMBER'S PARLIAMENTARY ELECTIONS MR CLINTON WILL REAFFIRM THAT SUPPORT MR TALBOTT'S PHRASE IS NOW MORE THAN EVER NEXT WEEK WHEN HE GOES TO MOSCOW FOR HIS SECOND SUMMIT WITH MR YELTSIN TO SOME CRITICS THE ELECTION RESULTS AND MR TALBOTT'S FAILURE TO PREDICT THEM ARE PROOF EITHER OF HIS NAIVETE ABOUT RUSSIA OR A CAPACITY FOR SELFDELUSION I DON'T REALLY THINK STROBE IS NAIVE OR ROMANTIC ABOUT WHAT'S GOING ON IN RUSSIA SAYS MARSHALL GOLDMAN ASSOCIATE DIRECTOR OF HARVARD'S RUSSIAN RESEARCH CENTER HE'S JUST SO COMMITTED TO MAKING IT WORK THAT HE'LL BLIND HIMSELF AND BLIND OTHERS WHEN THINGS GO WRONG DAVID SATTER AN OLD OXFORD FRIEND OF MR TALBOTT'S AND MR CLINTON'S WHO SPENT YEARS IN MOSCOW AS A REPORTER SAYS FOR ALL MY AFFECTION FOR STROBE THEIR POLICY IS ASCRIBING AMERICAN ATTRIBUTES TO RUSSIA WHERE THEY DON'T APPLY ON SEPT 21 JUST BEFORE THE NEWS BROKE THAT MR YELTSIN WAS DISBANDING HIS PARLIAMENT MR TALBOTT WAS ASSURING A CONGRESSIONAL COMMITTEE ABOUT THE NORMALIZATION OF POLITICS IN RUSSIA AND UKRAINE WHERE LEGISLATORS GET UP AND YELL AND SCREAM BUT THEY DON'T HAVE TO WORRY ABOUT BEING TAKEN AWAY IN THE MIDDLE OF THE NIGHT WITHIN THE ADMINISTRATION MR TALBOTT'S ZEAL HAS SOMETIMES CAUSED A STIR A WIDELY QUOTED REMARK FOLLOWING RUSSIA'S ELECTIONS THAT MOSCOW NEEDED LESS SHOCK AND MORE THERAPY SPARKED A FUROR AT THE TREASURY DEPARTMENT WHERE OFFICIALS FEARED MOSCOW WOULD TAKE IT AS AN INVITATION TO BACK OFF REFORMS IT WASN'T A WELLCHOSEN LOCUTION SAYS A SENIOR US OFFICIAL WITH ECONOMICS NOW CENTRAL TO RUSSIA'S SUCCESS AND MR TALBOTT AN ECONOMICS NEOPHYTE HE WILL AT LEAST HAVE TO CHOOSE HIS WORDS MORE CAREFULLY ON HIS TRIP PRESIDENT CLINTON WILL CALL FOR MORE SHOCK AND MORE THERAPY MR TALBOTT SAYS HE PLEADS GUILTY TO THE CHARGE OF BEING A ROMANTIC BUT NOT A TRUE BELIEVER IN HIS YEARS OF WRITING FOR TIME MAGAZINE HE SAW SOME OF THE WORST RUSSIA COULD MUSTER AFTER THE KHRUSHCHEV MEMOIRS CAME OUT HE WAS BANNED FOR FIVE YEARS FROM THE SOVIET UNION MY OPTIMISM IS ROOTED NOT IN ROMANCE BUT IN A CLEAREREYED PERCEPTION OF WHAT THE PEOPLE HAVE ACCOMPLISHED IN THE PAST AND WHAT THEY ARE ACCOMPLISHING NOW HE SAYS NELSON STROBRIDGE TALBOTT III WAS RAISED IN COMFORT AND PRIVILEGE OUTSIDE CLEVELAND THIRDGENERATION HOTCHKISS SCHOOL THIRDGENERATION YALE HIS GRANDFATHER WAS A MEMBER OF WALTER CAMP'S FIRST ALLAMERICA FOOTBALL TEAM MR TALBOTT SAYS TWO EVENTS IN HIS EARLY LIFE SPARKED HIS PASSION FOR RUSSIA THE TERROR OF THE 1962 CUBAN MISSILE CRISIS AND A MAGICAL CLASS AT HOTCHKISS IN RUSSIAN LITERATURE IN TRANSLATION BY HIS FRESHMAN YEAR AT YALE MR TALBOTT WAS CLEARLY IN LOVE WITH THE LANGUAGE AND CULTURE IF NOT THE SYSTEM SAYS HIS BROTHERINLAW AND YALE CLASSMATE DEREK SHEARER IN THEIR INTENSIVERUSSIAN CLASS THE STUDENTS WERE REQUIRED TO GIVE REGULAR FIVEMINUTE SPEECHES I WOULD TALK ABOUT CALIFORNIA WHERE I COME FROM MR SHEARER RECALLS AND STROBE WOULD GIVE A TALK I REMEMBER THE TITLE EXACTLY ON THE MYSTIQUE OF THE RUSSIAN SOUL' MR TALBOTT WROTE HIS SENIOR THESIS ON FYODOR TYUTCHEV A 19THCENTURY RUSSIAN LYRIC POET WHOSE VERSE RECENTLY FOUND ITS WAY INTO A SPEECH BY SECRETARY OF STATE WARREN CHRISTOPHER THE POINT OF NO RETURN CAME DURING MR TALBOTT'S SECOND YEAR AT OXFORD WHEN TIME INC HIRED HIM TO TRANSLATE THE SMUGGLED KHRUSHCHEV MEMOIRS SWEARING BOTH HIM AND HIS HOUSEMATES TO STRICT SECRECY THE KHRUSHCHEV PROJECT CHANGED HIS LIFE MARKING HIM AS A YOUNG MAN ON A FAST TRACK WITH AN ABIDING PASSION IRONICALLY THE MEMOIRS WOULD KEEP HIM OUT OF RUSSIA FOR YEARS THE SOVIET GOVERNMENT DENOUNCED THE FIRST VOLUME AS A FORGERY BRANDING MR TALBOTT A SAPLING OF THE CENTRAL INTELLIGENCE AGENCY IN 1974 AS HE WAS GETTING READY TO MOVE TO MOSCOW FOR TIME A SECOND VOLUME WAS PUBLISHED AND THE AUDIO TAPES AUTHENTICATED HE WAS DECLARED PERSONA NON GRATA AND BARRED FROM RUSSIA FOR FIVE YEARS AS LATE AS 1985 HE REMAINED ON AT LEAST ONE KGB LIST ON A TRAIN TRIP TO RUSSIA FROM POLAND MR TALBOTT WAS ROUSTED BY ARMED SOVIET GUARDS AND INTERROGATED FOR SEVERAL HOURS IT WAS THE MIDDLE OF THE NIGHT AND I CAN STILL REMEMBER STROBE IN HIS PAJAMAS AND SLIPPERS BEING MARCHED THROUGH THE SNOW AND SLUSH UP THE TRACK SAYS HIS TRAVELING COMPANION STEPHEN SMITH THEN TIME'S NATION EDITOR EVEN THEN MR TALBOTT NEVER LOST HIS PASSION IN 1987 HE PUBLISHED A POEM IN THE NEW YORKER DESCRIBING A VISIT TO THE UZBEK CAPITAL OF TASHKENT AND THE REFUGE HE FOUND WITH THE AGING WIDOW OF A COMPOSER THE ONLY HOME WHERE I CAN GO IN TASHKENT AT LEAST IS YOURS HERE'S TO YOU MY HOSTESS TO PEACE FRIENDSHIP AND TREASON THERE IS AN APOCRYPHAL TALE ABOUT MR TALBOTT AND WASHINGTON THE PATRICIAN MR TALBOTT BEGAN HIS CONFIRMATION HEARINGS BY INSTRUCTING SENATORS HOW TO PRONOUNCE HIS NAME TAWLBOT NOT TALBIT IN TRUTH MR TALBOTT OFFERED THE ADMONITION IN JEST WHILE PRACTICING FOR HIS HEARINGS WITH AIDES AT THE STATE DEPARTMENT ONE THING YOU LEARN VERY EARLY ON HE SAYS IS NOT TO CONTRADICT SENATORS THERE IS ALSO A CALCULATING SIDE TO MR TALBOTT'S RELENTLESSLY OPTIMISTIC VIEW OF RUSSIA ON FOREIGN POLICY MATTERS HE SAYS AMERICANS LIKE INSTANT GRATIFICATION THEY WANT TO SEE A QUICK FIX SINCE RUSSIA'S TRANSITION TO DEMOCRACY WILL NOT BE PRETTY OR QUICK HE REASONS AMERICANS NEED COAXING AND CHEERLEADING TO STICK WITH THE POLICY MR TALBOTT IS A CONSUMMATE BRIEFER PLAYING DOWN DOUBTS AND FEARS ABOUT RUSSIA WHENEVER THEY ARISE HOURS AFTER PRESIDENT YELTSIN ORDERED THE ATTACK ON THE RUSSIAN PARLIAMENT MR TALBOTT WAS IN FRONT OF THE CNN CAMERAS INSISTING THAT OPPOSITION FORCES HAD PROVOKED THE CONFRONTATION AND THAT THE GOVERNMENT HAD USED ONLY THAT DEGREE OF FORCE THAT WAS ABSOLUTELY NECESSARY SUCH AN APPROACH DOES HAVE ITS DANGERS A PUBLIC BACKLASH COULD ERUPT IF RUSSIA FAILS TO LIVE UP TO THE ROSY VIEW MOSCOW MIGHT ALSO CONCLUDE THAT US SUPPORT IS VIRTUALLY UNCONDITIONAL MR TALBOTT SAYS THAT HE IS FAR STERNER WITH THE RUSSIANS IN PRIVATE FOR REASONS OF SHEER PRAGMATISM PRESIDENT CLINTON ALMOST CERTAINLY WOULD HAVE BEEN A YELTSIN SUPPORTER HE CAME TO OFFICE CONVINCED THAT ONLY WITH A STABLE RUSSIA COULD HE AFFORD TO CHOP THE DEFENSE BUDGET ENOUGH TO FUND HIS DOMESTIC AGENDA WHAT MR TALBOTT HAS PROVIDED IS THE STRATEGY PRESSING FOR CLOSER RUSSIANUS COLLABORATION IN SPACE DEFENSE SCIENCE AND TECHNOLOGY WHEN NECESSARY HE HAS FOUGHT LIKE A TIGER TO DEFEND HIS VISION LAST FALL WHEN MR CHRISTOPHER AND OTHER TOP OFFICIALS WERE LEANING TOWARD EXTENDING PROVISIONAL MEMBERSHIP IN THE NORTH ATLANTIC TREATY ORGANIZATION TO EASTERN EUROPE'S NEW DEMOCRACIES MR TALBOTT POUNDED OUT A SINGLESPACED FIVEPAGE MEMO ARGUING THAT THE MOVE WOULD FEED RUSSIAN PARANOIA AND WEAKEN MR YELTSIN MR CHRISTOPHER AIDES SAY WAS SWAYED AND SO WAS THE PRESIDENT WHERE MR TALBOTT HAS MADE THE BIGGEST DIFFERENCE IS IN KEEPING MR CLINTON COMMITTED TO RUSSIAN REFORM THROUGH A SERIES OF BONECHILLING CRISES THE MORE SEASONED GEORGE BUSH FLINCHED WHEN HE FIRST GOT THE NEWS THAT MIKHAIL GORBACHEV HAD BEEN DEPOSED IN THE AUGUST 1991 COUP ATTEMPT MR CLINTON HAS YET TO FLINCH MR TALBOTT SAYS THEIR FUNDAMENTAL CONFIDENCE IN PRESIDENT YELTSIN HAS NEVER WAVERED BUT HE ADMITS THERE HAVE BEEN HAIRY MOMENTS ONE OF THE MOST WORRISOME CAME ON OCT 3 WHEN RUSSIAN HARDLINERS APPEARED TO BE GAINING CONTROL OF THE MOSCOW STREETS AND THE YELTSIN GOVERNMENT WENT SILENT FOR HOURS SITTING IN HIS STUDY AT HOME WATCHING THE CRISIS UNFOLD ON CNN MR TALBOTT RECALLS HEARING A MOB OF RUSSIAN NATIONALISTS CHANTING KILL THE YIDS SAVE RUSSIA IT ONLY CONFIRMED HIS COMMITMENT TO THE POLICY THE ALTERNATIVE TO REFORM HE SAYS IS THAT CHANTING MOB LESS CLEAR IS HOW MR TALBOTT WILL HANDLE POLICY QUESTIONS OUTSIDE RUSSIA ONCE HE IS CONFIRMED AS DEPUTY SECRETARY OF STATE AS A COLUMNIST HE ADVOCATED AN ACTIVIST FOREIGN POLICY CALLING FOR UNITED NATIONS AND US MILITARY ACTION IN BOSNIA AND SOMALIA THOUGH MR CLINTON SOUNDED THOSE SAME THEMES A YEAR AGO AFTER A SERIES OF SETBACKS HE HAS SETTLED FOR A WEARY REALISM 9401070134 940107 KEMPER SETTLES TWO LAWSUITS AGAINST A UNIT BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL KEMPER CORP OPTED TO SETTLE TWO LAWSUITS AGAINST ITS SECURITIES UNIT INCLUDING ONE THAT YIELDED A PUNISHING 1374 MILLION VERDICT AGAINST THE COMPANY THE OTHER CASE INVOLVED AN EPISODE IN WHICH KEMPER'S SECURITIES UNIT UNSUCCESSFULLY SOUGHT TO HELP AN EVANGELICALORIENTED COLLEGE FOUNDED BY JERRY FALWELL SELL 61 MILLION IN FIRSTMORTGAGE BONDS THE LONG GROVE ILL INSURANCE AND FINANCIAL CONCERN DIDN'T DISCLOSE TERMS OF THE SETTLEMENTS BEYOND NOTING THAT THEY WILL HAVE NO IMPACT ON EARNINGS BECAUSE RESERVES HAD BEEN TAKEN IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY KEMPER SHARES JUMPED 875 CENTS TO 37 IN THE LARGEST CASE KEMPER SAID IT AGREED TO SETTLE ALL CLAIMS ASSERTED BY CONTICOMMODITY SERVICES INC AND CONTI CUSTOMERS THE CONTICOMMODITY CASE IS THE ONE IN WHICH A HOUSTON JURY HAD FOUND IN 1992 AGAINST KEMPER'S PRESCOTT BALL & TURBEN BROKERAGE DIVISION NEW YORKBASED CONTICOMMODITY A NOWINACTIVE UNIT OF CLOSELY HELD CONTINENTAL GRAIN CO FILED SUIT IN 1986 ALLEGING THAT A GOVERNMENT BOND TRADER AT PRESCOTT HAD ENTERED INTO PREARRANGED TRADES WITH A TRADER AT CONTICOMMODITY'S HOUSTON ARBITRAGE OFFICE IT CONTENDED THAT MANY OF THE LOSSES THEN WERE ASSIGNED TO CUSTOMERS OF CONTICOMMODITY THE SUIT ALLEGED THAT THE TRADES OCCURRED FROM 1982 TO 1984 BOTH BEFORE AND AFTER KEMPER'S 1982 ACQUISITION OF PRESCOTT KEMPER DEFENDED THE CASE IN COURT AND IN APRIL 1992 WAS STUNNED BY THE JURY'S 1374 MILLION VERDICT IN A SECOND UNPLEASANT SURPRISE FOR KEMPER THE JUDGE IN THE HOUSTON TRIAL SUBSEQUENTLY DECLINED TO REDUCE THE JURY'S BIG AWARD KEMPER HAS SINCE BEEN APPEALING THE CASE KEMPER ALSO NOTED YESTERDAY THAT IT HAD REACHED SETTLEMENT WITH CONTI CUSTOMERS WHO HAD FILED SEPARATE LITIGATION ON THE MATTER THAT CASE HADN'T YET GONE TO TRIAL KEMPER ALSO REACHED AN OUTOFCOURT SETTLEMENT OF A LAWSUIT FILED BY CHRISTIAN MUTUAL LIFE INSURANCE CO OF CONCORD NH THAT SUIT INVOLVED THE COLLAPSE OF A PLAN BY WHICH LIBERTY UNIVERSITY OF LYNCHBURG VA WAS TO ISSUE THE BONDS WITH KEMPER AS UNDERWRITER THE 1990 OFFERING FAILED TO FIND BUYERS SUBSEQUENTLY CHRISTIAN MUTUAL WHICH HAD LENT MONEY TO LIBERTY EXPECTING TO BE REPAID FROM THE PROCEEDS ALLEGED IN ITS COMPLAINT THAT KEMPER HAD MISREPRESENTED ITS INTENTIONS REGARDING THE OFFERING TRIAL IN THAT CASE HAD BEEN UNDER WAY IN STATE COURT IN NEW HAMPSHIRE BUT HADN'T YET GONE TO THE JURY KEMPER POINTED OUT THAT LIBERTY UNIVERSITY'S CLAIM IN THE MATTER HAD GONE TO ARBITRATION IN 1992 AND THAT A PANEL HAD RULED IN KEMPER'S FAVOR THE SETTLEMENTS REMOVE UNCERTAINTIES THAT KEMPER FACED FOR NEARLY TWO YEARS SAID A COMPANY OFFICIAL SEPARATELY KEMPER SAID THAT IT SOLD ITS MINORITY HOLDING IN CENTRE REINSURANCE HOLDINGS LTD TO MAJORITY HOLDER ZURICH INSURANCE CO AS A RESULT KEMPER SAID IT WILL REALIZE IN THE JUSTENDED FOURTH QUARTER A GAIN OF 378 MILLION OR ABOUT 115 A SHARE THE COMPANY ALSO SAID THAT IT HAS REFINANCED CERTAIN MORTGAGE LOANS AND OTHER REALESTATE INVESTMENTS IN THE PROCESS REDUCING ITS REALESTATERELATED INVESTMENTS BY ABOUT 15 SUCH INVESTMENTS STOOD AT 17 BILLION AS OF SEPT 30 PROCEEDS OF THE REFINANCING WERE REINVESTED IN INVESTMENTGRADE SECURITIES THE COMPANY SAID THE ACTION ENHANCES ITS LIFEINSURANCE SUBSIDIARIES' LIQUIDITY 9401070133 940107 ATTENTION VOTERS ARUBA NASSAU AND JAMAICA ARE NOT IN AMERICA BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL GEOGRAPHIC ILLITERACY REARS ITS UGLY HEAD AGAIN OR MAYBE THE FOLKS IN ATLANTA ARE SIMPLY THINKING WISHFULLY WHATEVER THE CAUSE VALUJET AIRLINES RECEIVED SOME FARFETCHED ENTRIES IN A RECENT CONTEST WHICH PUT THE CHOICE OF A NEW DESTINATION TO A POPULAR VOTE THE STARTUP CARRIER WHOSE BASE OF OPERATIONS IS ATLANTA ASKED ATLANTANS TO CHOOSE A TWELFTH MARKET FOR IT TO SERVE ALL OF ITS OTHER 11 MARKETS ARE IN THE SOUTHEAST THE ONLY CAVEAT THAT THE NEW DESTINATION BE WITHIN 400 MILES OF ATLANTA BECAUSE VALUJET SPECIALIZES IN SHORT HAULS MORE THAN HALF THE 7500 OR SO ENTRIES VALUJET RECEIVED WERE FOR CITIES WELL BEYOND THAT BOUNDARY LINE SCORES OF ENTRIES CAME IN FOR TOURIST DESTINATIONS SUCH AS SAN DIEGO 1887 MILES AWAY AND FOR SAN FRANCISCO 2135 MILES DISTANT AT 732 MILES NASSAU IN THE BAHAMAS WAS WELL BEYOND THE MILEAGE LIMIT IT'S ALSO OUTSIDE THE US AND VALUJET IS STRICTLY A DOMESTIC CARRIER THAT MEANT VOTES FOR ARUBA BERMUDA AND JAMAICA WERE ALSO OFF THE MAP VALUJET OFFICIALS DON'T KNOW WHETHER THE VOTERS DIDN'T READ THE RULES CORRECTLY WEREN'T REALLY SURE HOW FAR AWAY SOME OF THOSE CITIES WERE OR SIMPLY IGNORED THE RESTRICTIONS AND VOTED THEIR HEART'S DESIRE THE LATTER IS QUITE LIKELY GIVEN THAT VALUJET'S FARES START AT 39 ONE WAY SO IF A FARE THAT LOW IS A POSSIBILITY WHY NOT NOMINATE A ROUTE THAT MATTERS IF ONLY TO ONE VOTER LIKE BLAIRSVILLE GA WHICH IS WITHIN 400 MILES UNFORTUNATELY IT HAS ONLY 600 RESIDENTS AND NO COMMERCIAL AIRPORT IN FACT SEVERAL ENTRIES WERE FOR CITIES THAT HAVE NO COMMERCIAL SERVICE PERHAPS BECAUSE THEY HAVE NO COMMERCIAL AIRPORTS CHILLICOTHE OHIO FALLS IN THAT CATEGORY AS DOES FITZGERALD GA WHICH HAS ONLY A SHORT TURF RUNWAY MORE SUITABLE TO TINY PROPJETS AND CROPDUSTERS THAN VALUJET'S DC9S AFTER WEEDING OUT THE OUTLANDISH AND INELIGIBLE VALUJET PLANS TO ANNOUNCE THE CONTEST RESULTS THIS MORNING NAMING THE CITY IT WILL ADD TO ITS SCHEDULE STARTING MAY 1 AIRLINE OFFICIALS SAID THE TOP THREE VOTE GETTERS WERE CINCINNATI CHARLOTTE NC AND SAVANNAH GA NOT IN THE RUNNING MACON THAT GEORGIA TOWN WAS ONE OF 12 THAT WERE TOO NEAR FROM THE ATLANTA AIRPORT MACON'S ONLY 45 MINUTES AWAY SAID A VALUJET SPOKESWOMAN IT DOESN'T MAKE ANY SENSE TO FLY YOU'D SPEND ALL YOUR TIME IN TRAFFIC GETTING TO THE AIRPORT 9401070132 940107 YOUR MONEY MATTERS WEEKEND REPORT LOOK BEFORE TAKING THE LEAP INTO HEDGE FUNDS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL WITH STOCK MARKETS AT RECORD HIGHS A LOT OF INVESTORS ARE THINKING ABOUT HOW TO PROTECT THEIR NEST EGGS FROM A POSSIBLE DOWNTURN BUT MANY OF THOSE WEALTHY ENOUGH TO AFFORD MINIMUM INVESTMENTS OF 500000 OR MORE ARE TAKING ACTION THEY ARE ENTRUSTING THEIR MONEY OR AT LEAST A HEFTY CHUNK OF IT TO INVESTMENT MANAGERS WHO RUN PRIVATE PARTNERSHIPS REASSURINGLY KNOWN AS HEDGE FUNDS HEDGE FUNDS WHICH ARE POPULARLY ASSOCIATED WITH SUCH INVESTMENT LUMINARIES AS GEORGE SOROS MICHAEL STEINHARDT AND JULIAN ROBERTSON GOT THEIR NAME BECAUSE MANAGERS CAN HEDGE THEIR BETS WITH STRATEGIES AIMED AT PROTECTING INVESTORS AGAINST A MARKET CORRECTION AND EVEN MAKING MONEY IN A BEAR MARKET WE ARE TRYING TO BALANCE RISK FROM EVERY POSSIBLE ANGLE FOR OUR CLIENTS BY USING A WIDE ARRAY OF STRATEGIES NOT AVAILABLE TO TRADITIONAL MANAGERS SAYS E LEE HENNESSEE DIRECTOR OF THE HEDGE FUND SELECT GROUP OF REPUBLIC NEW YORK SECURITIES CORP IT'S EASY TO UNDERSTAND THE APPEAL SOME SUPERSTAR MANAGERS SUCH AS MR SOROS OF QUANTUM FUND MR STEINHARDT OF STEINHARDT PARTNERS AND MR ROBERTSON OF TIGER FUND PRODUCE BIG RETURNS YEAR AFTER YEAR FOR 1993 FOR EXAMPLE FUNDS RUN BY GEORGE SOROS AVERAGED A 73 GAIN BEFORE INCENTIVE FEES AND MR ROBERTSON'S TIGER FUND HAD A 74 GROSS RETURN BEFORE FEES BUT HEDGE FUNDS CAN ALSO MEAN BIG RISKS INDEED SOME INVESTMENT PROS SAY THAT FAR FROM BEING THE SAFE HARBORS CONJURED UP BY THE NAME HEDGE FUND THESE INVESTMENTS ARE REALLY HIGHSTAKES GAMBLES ON GUNSLINGER MANAGERS THEY PLACE BIG BETS AND THESE CAN BE IN ANY DIRECTION SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS MR MARKESE SAYS HE'S NEVER SEEN A STUDY OF HEDGE FUNDS THAT INCLUDES THE ADDED RISK THEY TAKE TO ACHIEVE THEIR HIGHER RETURNS HEDGE FUNDS ARE NOT APPROPRIATE FOR A LOT OF PEOPLE SAYS STEVE JANACHOWSKI PARTNER IN THE SAN FRANCISCO INVESTMENTMANAGEMENT FIRM OF BROUWER & JANACHOWSKI THEY TRADE ON MARGIN THEY ARE HIGHLY LEVERAGED AND THEY TAKE BIG POSITIONS THEY EITHER PAY OFF OR GET HAMMERED EVEN MS HENNESSEE DOESN'T RECOMMEND THAT WEALTHY INVESTORS PUT ALL THEIR MONEY IN HEDGE FUNDS INSTEAD SHE SAYS THEY ARE APPROPRIATE FOR JUST A PORTION OF ONE'S ASSETS AS A WAY TO GET INCREASED DIVERSIFICATION CONSULTANTS SAY 40 BILLION IS INVESTED IN HEDGE FUNDS AND THERE MAY BE 800 TO 1000 OF THESE FUNDS IN OPERATION DOUBLE THE NUMBER OF A FEW YEARS AGO TWO OR THREE HEDGE FUNDS ARE OPENING UP EACH WEEK SAYS BUDGE COLLINS PRESIDENT OF COLLINS ASSOCIATES A NEWPORT BEACH CALIF PENSION CONSULTANT AND INVESTMENT MANAGER HEDGE FUNDS HAVE BECOME CHIC SAYS MICHAEL STOLPER A SAN DIEGO CONSULTANT WHO HELPS WEALTHY INDIVIDUALS PICK MONEY MANAGERS THEY ARE ANOTHER CLUB YOU CAN BELONG TO IF YOU ARE AFFLUENT AND OTHER PEOPLE CAN'T BUT THIS IS A CLUB IN WHICH THE INVESTOR MUST TRUST THE FUND MANAGER IN A HEDGE FUND THE MANAGER HAS VIRTUALLY TOTAL POWER TO INVEST YOUR MONEY IN ANYTHING AND ANY WAY HE OR SHE PLEASES THAT INCLUDES SHORT SALES IN WHICH THE MANAGER SEEKS TO PROFIT FROM AN ANTICIPATED PRICE DECLINE BY SELLING BORROWED SHARES EVENTUALLY SHARES MUST BE BOUGHT TO REPLACE THE BORROWED ONES BUT IF THE PRICE FALLS BEFORE THEN THE SHORT SELLER PROFITS HEDGE FUNDS ALSO BUY DERIVATIVES ESOTERIC FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE LINKED TO OR DERIVED FROM THE PERFORMANCE OF SUCH THINGS AS INTEREST RATES CURRENCIES STOCKS OR COMMODITIES THEN THERE ARE FUTURES AND OPTIONS AND OVERSEAS INVESTMENTS IN COUNTRIES YOU'VE NEVER EVEN HEARD OF AND THE MANAGER CAN LEVERAGE YOUR RISK BY BORROWING MONEY TO INVEST ON MARGIN SAYS MR STOLPER THE SAN DIEGO CONSULTANT THERE'S NO SECRET TO HOW THEY DO IT THEY LEVERAGE AND CONCENTRATE THEIR INVESTMENTS TO GET RETURNS UP BUT BOTH THESE STRATEGIES ARE TWOEDGED SWORDS FURTHERMORE YOU WILL RARELY IF EVER SEE THE NAMES OF THE STOCKS BONDS SHORT SALES CURRENCIES AND OTHER INVESTMENTS IN YOUR ACCOUNT PROS SAY YOUR INFORMATION WILL OFTEN CONSIST MERELY OF A LETTER LISTING THE QUARTERLY RATE OF RETURN ON YOUR INVESTMENT A K1 STATEMENT OF INFORMATION FOR YOUR INCOMETAX RETURN AND AN ANNUAL AUDITED FINANCIAL STATEMENT YOU'VE ALSO GOT TO SHARE YOUR PROFITS WITH YOUR MANAGER THE TYPICAL HEDGE FUND MANAGER NOT ONLY GETS A 1 MANAGEMENT FEE BUT ALSO TAKES A HEFTY 20 SLICE OF THE PROFITS THE LURE OF A BIG PAYOFF ATTRACTS THE BEST AND THE BRIGHTEST OF THE INVESTMENT WORLD SAYS DONALD J HARDY DIRECTOR OF RUSSELL PRIVATE INVESTMENT SERVICES A TACOMA WASH INVESTMENTCONSULTING FIRM THE START OF THE YEAR IS CRUCIAL FOR MANY HEDGEFUND INVESTORS BECAUSE IF THEY WANT TO ENTER OR EXIT A FUND THEY OFTEN MUST DO IT ON THE FIRST BUSINESS DAY OF THE YEAR SAYS PETER DECICCO PRESIDENT OF PORTFOLIO MANAGEMENT RESOURCES INC A FAIRFIELD IOWA CONSULTING FIRM THAT SELECTS AND EVALUATES HEDGEFUND MANAGERS BUT ONLY A FEW WEALTHY INDIVIDUALS WITH IMPECCABLE CONNECTIONS CAN INVEST WITH THE SUPERSTARS BECAUSE HEDGE FUNDS ARE LIMITED PARTNERSHIPS THAT AREN'T REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION THEY ARE LIMITED TO 99 INVESTORS EACH AND INVESTMENT POSITIONS WITH THE SUPERSTARS ARE FILLED MINIMUMS OFTEN ARE 10 MILLION WITH THE STAR FUNDS AND YOU MAY HAVE TO LOCK UP YOUR MONEY FOR THREE YEARS INSTEAD OF ONE SOME PROS DON'T THINK THE TYPICAL WELLOFF INVESTOR IS GOING TO BE INVESTING WITH A TOP PERFORMER LET ALONE A SUPERSTAR OF THE HUNDREDS OF HEDGEFUND MANAGERS MAYBE 30 ARE EXTRAORDINARY AND THE REST ARE DESTINED FOR MEDIOCRITY OR WORSE SAYS MR STOLPER STILL STUDIES BY HEDGEFUND CONSULTANTS SHOW THAT THE AVERAGE HEDGEFUND MANAGER THEY TRACK BEATS THE STANDARD & POOR'S 500STOCK INDEX AND THE AVERAGE GROWTH MUTUALFUND MANAGER REPUBLIC NEW YORK'S MS HENNESSEE REPORTED THAT AFTER INCENTIVE FEES THE AVERAGE HEDGE FUND IN HER UNIVERSE OF FUNDS RETURNED 19 ANNUALLY FROM 1987 THROUGH 1992 THAT OVERSHADOWS A YEARLY TOTAL RETURN OF 147 BY THE S&P 500 AND 14 FOR THE AVERAGE GROWTH MUTUALFUND MANAGER MS HENNESSEE'S UNIVERSE OF FUNDS RANGED FROM 111 HEDGE FUNDS IN 1987 TO 362 FUNDS IN 1992 HEDGE FUNDS SOUNDLY OUTPERFORMED THE COMPETITION IN THE TWO RECENT ROUGH YEARS FOR INVESTORS 1987 145 VS 52 FOR THE S&P AND 1990 109 VS A NEGATIVE 34 FOR THE S&P MS HENNESSEE SAYS THROUGH SEPT 30 OF LAST YEAR THE LATEST AVAILABLE NUMBERS THE AVERAGE HEDGE FUND FOLLOWED BY RUSSELL PRIVATE INVESTMENT SERVICES RETURNED 168 UP SHARPLY FROM THE 75 TOTAL RETURN OF THE S&P 500 SAYS MR HARDY STILL SOME INVESTMENT PROS AREN'T CONVINCED MR JANACHOWSKI THE SAN FRANCISCO INVESTMENT ADVISER WONDERS HOW REPRESENTATIVE THE FUNDS IN THE STUDY ARE OF THE WHOLE GROUP OF HEDGE FUNDS IT'S A SELFSELECTING UNIVERSE HE SAYS THESE FUNDS DON'T HAVE TO REPORT THEIR RESULTS SO MANAGERS WHO DON'T DO WELL MAY NOT REPORT OR THEY SIMPLY GO OUT OF BUSINESS BECAUSE THEY CONCENTRATE THEIR INVESTMENTS AND USE LEVERAGE AND SHORT SALES INVESTMENT RETURNS FROM SOME HEDGE FUNDS CAN VARY MUCH MORE THAN THE TYPICAL MUTUAL FUND PROS SAY FOR EXAMPLE ONE FUND EXPERIENCED A 21 LOSS IN THE MONTH OF FEBRUARY ALONE SAYS ONE CONSULTANT ANOTHER FUND RACKED UP A 17 RETURN IN THE MONTH OF MAY FOR PEOPLE WHO HAVE THE STOMACH AND THE WALLET FOR HEDGEFUND INVESTING IT'S PROBABLY WORTH PAYING FOR A CONSULTANT TO SELECT AND MONITOR SEVERAL HEDGE FUNDS INVESTMENT ADVISERS SAY FEES VARY SOME BROKERS CHARGE NO FEES BUT GET COMPENSATED WHEN THE HEDGEFUND MANAGER BUYS AND SELLS STOCKS AND OTHER INVESTMENTS THROUGH THE BROKER'S FIRM CREATING THE POTENTIAL FOR A CONFLICT OF INTEREST SOME CONSULTANTS CHARGE A PERCENTAGE OF ASSETS MANAGED MR DECICCO OF PORTFOLIO MANAGEMENT RESOURCES FOR EXAMPLE CHARGES FEES OF LESS THAN 1 ON LARGE ACCOUNTS HE SAYS ANOTHER APPROACH IS TO BUY A DIVERSIFIED FUND OF HEDGE FUNDS SEVERAL CONSULTANTS OFFER THESE INVESTMENTS MINIMUM INVESTMENT REQUIREMENTS IN THESE FUNDS USUALLY IS LOWER ABOUT 250000 AND IT'S UP TO THE CONSULTANT TO HIRE AND FIRE HEDGE FUNDS IN THE FUND FOR THIS SERVICE CONSULTANTS OFTEN CHARGE 1 OF ASSETS MANAGED SOME CHARGE INCENTIVE FEES ON TOP OF THIS HERE TOO INVESTORS NEED SHARP ANALYSIS BECAUSE THEY ARE ADDING ANOTHER LAYER OF MANAGEMENT FEES TO FEES CHARGED BY THE FUNDS ALREADY UNLESS YOU'RE CAREFUL THIS APPROACH IS GOING TO MAKE THE 3 WRAP FEES CHARGED BY SOME BROKERS ON THEIR MONEYMANAGEMENT ACCOUNTS LOOK LIKE A BARGAIN MR STOLPER SAYS 9401070131 940107 MEDICAL ODYSSEY TESTING A NEW DRUG ENTAILS DAUNTING COSTS AND CLASHING INTERESTS UPJOHN LABORS TO RECRUIT SUITABLE STROKE PATIENTS DICKERS WITH DOCTORS TURF WARS AND PRICE PRESSURE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CHARLOTTESVILLE VA ALL NIGHT LONG KAREN DELLINGER HUDDLED WITH HER CHILDREN IN A SMALL VISITORS' LOUNGE AT THE UNIVERSITY OF VIRGINIA HOSPITAL PRAYING THAT HER HUSBAND WILBUR WOULDN'T DIE AT 330 AM A DOCTOR EMERGED FROM THE INTENSIVECARE UNIT TO CONFIRM THAT MR DELLINGER HAD A BRAIN HEMORRHAGE AND NEEDED SURGERY HOURS LATER ANOTHER DOCTOR OFFERED A TANTALIZING CHOICE AN EXPERIMENTAL DRUG WAS BEING TESTED ON PATIENTS THOUGH UNPROVEN IN HUMANS IT HAD REDUCED POTENTIALLY FATAL COMPLICATIONS IN ANIMALS SHORTLY AFTER BRAIN HEMORRHAGES MRS DELLINGER ASKED IF SHE WANTED HER 51YEAROLD HUSBAND TO ENTER THE STUDY SEIZED THE CHANCE IT WAS A MATTER OF LIFE AND DEATH SHE SAYS OF WHETHER HE WOULD EVER REGAIN HIS FACULTIES LIKE THE DELLINGERS HUNDREDS OF PATIENTS AND THEIR DOCTORS AT VARIOUS MEDICAL CENTERS ARE WAITING ANXIOUSLY TO SEE WHETHER THE DRUG TIRILAZAD MESYLATE WORKS THEY ARE TESTING IT AS PART OF A LARGESCALE CLINICAL TRIAL A COSTLY STRESSFUL PROCESS IN WHICH DRUG COMPANIES GATHER DATA THAT THE FOOD AND DRUG ADMINISTRATION USES TO DECIDE WHICH PROPOSED PRESCRIPTION DRUGS ARE SAFE AND EFFECTIVE ENOUGH FOR SALE AND WHICH AREN'T HUMAN DRUG TRIALS ARE CRUCIAL TO PHARMACEUTICAL COMPANIES SUCH AS UPJOHN CO WHICH MAKES TIRILAZAD LAST YEAR ABOUT 2000 COMPOUNDS WERE TESTED ON AT LEAST 650000 PATIENTS IN THE US ALONE THE NATIONAL INSTITUTES OF HEALTH ESTIMATES DRUG COMPANIES SPENT NEARLY 3 BILLION ON HUMAN TRIALS THE BIGGEST CHUNK OF THEIR RESEARCH AND DEVELOPMENT BUDGETS BUT NEW PRESSURES MAKE IT HARDER TO CARRY OUT A DRUG TRIAL QUICKLY AND AFFORDABLY OR EVEN AT ALL BIG TRIALS NOW CAN COST 50 MILLION AND INVOLVE LOGISTICS AS FRENETIC AS SHOOTING A MOVIE WITH BOTH PRESIDENT CLINTON AND BIG INSURERS PUSHING HARD FOR DRUGPRICE CONTROLS PHARMACEUTICAL COMPANIES ARE HAVING A MUCH TOUGHER TIME ABSORBING SUCH EXPENSES IN THE PAST DRUG COMPANIES HAVEN'T REALLY BEEN HAMPERED BY RISING COSTS SAYS LOUIS LASAGNA A DRUGDEVELOPMENT EXPERT AT TUFTS UNIVERSITY BUT NOW THE INDUSTRY IS RUNNING SCARED RESEARCH AND DEVELOPMENT BUDGETS ARE GOING TO BE CUT BACK AND THAT'S BOUND TO HAVE AN IMPACT ON CLINICAL TRIALS AND JUST AS THE DRUG INDUSTRY ENTERS AN ERA OF RETRENCHMENT THE BATTLE FOR CONTROL OF TRIALS IS HEATING UP DOCTORS SCIENTISTS REGULATORS AND DRUGCOMPANY EXECUTIVES REPEATEDLY CLASH OVER TURF AND ISSUES AS VITAL AS PATIENTS' LIVES OR THE INTEGRITY OF A MULTIYEAR PROJECT THE HIGH STAKES TURN EVEN A MINOR SQUABBLE INTO A DRAWNOUT TEST OF WILLS A LOOK AT TIRILAZAD'S JOURNEY FROM LAB TO PATIENT SHOWS HOW THESE HOPES AND FRUSTRATIONS INTERTWINE THE STORY STARTS AT UPJOHN'S LABS IN KALAMAZOO MICH IN THE EARLY 1980S SCIENTISTS HAD DISCOVERED A CASCADE REACTION IN WHICH DYING BRAIN CELLS RELEASE FREE RADICALS A HIGHLY REACTIVE CLASS OF MOLECULES THAT ARE MISSING AN ELECTRON AND THAT GO ON TO DAMAGE HEALTHY BRAIN CELLS NEARBY IF A NEW DRUG COULD STOP THIS CASCADE SCIENTISTS BELIEVED IT COULD HELP HUNDREDS OF THOUSANDS OF STROKE AND HEADINJURY VICTIMS EVERY YEAR BY THE MID1980S UPJOHN HAD SOME PROMISING CANDIDATES WHEN A MOUSE THAT HAD RECEIVED A TEST COMPOUND BEGAN WIGGLING AFTER RESEARCHERS HAD GIVEN IT UP FOR DEAD UPJOHN DECIDED TO CALL ITS POTENTIAL NEW DRUGS LAZAROIDS AFTER THE BIBLICAL LAZARUS BUT BEFORE UPJOHN COULD TEST THEM ON PEOPLE IT NEEDED HELP FROM LEADING RESEARCH DOCTORS AROUND THE US SO IN 1986 WHILE ANIMAL TRIALS WERE UNDER WAY UPJOHN SENT ONE OF ITS EMPLOYEES TO VISIT NEAL KASSELL A NEUROSURGEON AT THE UNIVERSITY OF VIRGINIA TO SEE WHETHER HE WANTED TO STUDY THE MOST PROMISING OF THE LAZAROIDS TIRILAZAD THE TALKS STARTED OFF BADLY UPJOHN WANTED TO FOCUS ON TREATING THE MOST COMMON TYPE OF STROKE ISCHEMIC STROKE WHICH IS CAUSED BY A BLOODFLOW STOPPAGE IN PART OF THE BRAIN AND AFFLICTS 400000 AMERICANS A YEAR DR KASSELL WASN'T INTERESTED HE SPECIALIZED IN A RARER STROKE SUBARACHNOID HEMORRHAGES WHICH INVOLVE BLEEDING BETWEEN THE BRAIN AND THE SKULL AND HIT ONLY 30000 PATIENTS A YEAR BUT AS THE TALKS CONTINUED A POSSIBLE NEW USE OF TIRILAZAD EMERGED MOST HEMORRHAGE PATIENTS UNDERGO PROMPT BRAIN SURGERY WHICH CAN HELP GREATLY AT FIRST BUT STILL LEAVES A RISK OF VASOSPASM A POTENTIALLY FATAL CONSTRICTION OF BLOOD VESSELS IN THE BRAIN ABOUT NINE DAYS AFTER THE INITIAL HEMORRHAGE DOCTORS IN THE MID1980S USED VARIOUS DRUGS TO WARD OFF VASOSPASM WITH LIMITED SUCCESS AS DR KASSELL SAW IT TIRILAZAD MIGHT BE A POTENT NEW WAY OF CONTROLLING VASOSPASM AFTER SOME DICKERING UPJOHN AGREED TO WORK WITH DR KASSELL TO WIDEN THE POSSIBLE USES OF ITS DRUG IT WOULD PAY HIM AND HIS COLLEAGUES TO TEST TIRILAZAD ON RABBITS MONKEYS AND THEN HUMANS WITH HEMORRHAGES WHILE IT PURSUED THE ISCHEMICSTROKE MARKET WITH OTHER DOCTORS TIRILAZAD FACED LONG ODDS MORE THAN 90 OF PROMISING COMPOUNDS PROVE SO HARMFUL OR INEFFECTIVE IN ANIMALS THAT RESEARCHERS DROP THEM BUT TIRILAZAD LIVED UP TO HOPES IN ANIMAL STUDIES IN 1987 AND 1988 IT THEN FARED WELL IN SMALLSCALE TESTS ON HUMAN SUBJECTS A PROCESS THAT FLUNKS 60 OF THE SURVIVING DRUGS IN EARLY 1992 UPJOHN AND THE UNIVERSITY OF VIRGINIA WERE READY FOR THE FINAL ROUND OF PATIENT TRIALS THE COSTLIEST TOUGHEST STAGE CALLED PHASE III TESTING BY THE FDA IT WOULD INVOLVE ABOUT 2000 PATIENTS WORLDWIDE SPLIT ALMOST EVENLY BETWEEN THE US AND FOREIGN COUNTRIES TO OVERSEE THE US PART OF PHASE III UPJOHN AND THE UNIVERSITY SET UP DUAL BATTLE ROOMS IN KALAMAZOO AND CHARLOTTESVILLE RESEARCHERS INITIALLY COMMUNICATED VIA PUBLIC INTERNET LINKS BUT SOON SWITCHED TO PRIVATE COMPUTER LINES FOR SECURITY REASONS PLANNERS AT BOTH SITES MAPPED OUT A STRATEGY TO SIGN UP NEARLY 60 HOSPITALS FOR THE STUDY ENROLL PATIENTS COLLECT DATA AND THEN PREPARE AN FDA FILING THAT MIGHT WELL FILL 50 SHIPPING CARTONS LIKE MOST DRUG MAKERS UPJOHN WANTED TO WORK WITH TOP TEACHING HOSPITALS WHICH HAVE PRESTIGE A STEADY FLOW OF PATIENTS AND THE ABILITY TO HANDLE THE PAPERWORK THAT COULD OVERWHELM A SMALL INSTITUTION THE UNIVERSITY OF VIRGINIA OFFERED ITS OWN MEDICAL CENTER AND HELPED RECRUIT DOCTORS AT BIGNAME CENTERS SUCH AS JOHNS HOPKINS HOSPITAL AND THE MAYO CLINIC WITH SUCH CENTERS HOWEVER CAME SOME PROBLEMS AN EARLY BLOWUP INVOLVED PLANS FOR DOCTORS TO MONITOR PATIENTS' TOTAL TREATMENT COST INCLUDING ANY POSTHOSPITAL CARE SUCH DATA COULD HELP UPJOHN SHOW LATER THAT TIRILAZAD WAS COSTEFFECTIVE EVEN AT A POSSIBLE PRICE OF 1500 OR MORE FOR THE 40 DOSES THAT PATIENTS WOULD NEED BUT SOME DOCTORS BALKED AT THE BOOKKEEPING I'M SURE ALL THAT COST INFORMATION IS IMPORTANT BUT I TOLD THEM I DON'T DO THAT' SAYS EUGENE FLAMM A NEUROSURGEON AT THE UNIVERSITY OF PENNSYLVANIA I'M INTERESTED ONLY IN THE TREATMENT OF VASOSPASM UPJOHN AND DR KASSELL'S AIDES URGED HIM TO RELENT HE DIDN'T I TOLD THEM I'M JUST BEING MY USUAL CANTANKEROUS SELF' DR FLAMM RECALLS ULTIMATELY UPJOHN LET DR FLAMM SKIP THE COST DATA TO UPJOHN WHICH PAYS A 5000 BOUNTY FOR EACH PATIENT ENROLLED IN THE STUDY THE DOCTORS' PICKINESS COULD BE ANNOYING BUT TO PHYSICIANS CLINICAL TRIALS ARE MEANT TO PROMOTE PATIENT CARE AND MEDICAL KNOWLEDGE TRIALS SHOULDN'T BE SWAYED BY A DRUG COMPANY'S MARKETING GOALS DAVID PIEPGRAS A MAYO CLINIC NEUROSURGEON SAYS HE DELAYED JOINING THE TRIAL BECAUSE IT SEEMED TO REQUIRE COSTLY POSSIBLY UNDESIRABLE ADDITIONS TO PATIENT TREATMENT RECRUITING PATIENTS BROUGHT MORE PROBLEMS THE TRIAL RULES SET BY THE UNIVERSITY OF VIRGINIA ALLOWED ANYONE AGE 18 TO 80 TO PARTICIPATE BUT THE PATIENTS COULDN'T BE PREGNANT OR SO ILL FROM OTHER DISEASES THAT THEY WERE LIKELY TO DIE DURING THE TRIAL RESEARCHERS THOUGHT THOSE RULES WERE BROAD ENOUGH THAT THEY COULD EASILY ENROLL 900 US PATIENTS IN 18 MONTHS THEY WERE WRONG ANOTHER RULE ALLOWED PATIENTS TO ENTER THE TRIAL ONLY IF THEY HAD SUFFERED A BRAIN HEMORRHAGE IN THE PAST 48 HOURS OTHERWISE TISSUE DAMAGE MIGHT BE TOO ADVANCED FOR TIRILAZAD TO HELP SUCH TIME LIMITS CAN SHARPLY LIMIT THE PATIENT POOL AND ENROLLMENT IN THE TRIAL FELL BEHIND SCHEDULE THE DELAYS GOT SO FRUSTRATING THAT NURSES IN CHARLOTTESVILLE ONCE CHEERED WHEN A HEMORRHAGE PATIENT ARRIVED WITHIN THE 48HOUR LIMIT LATER THEY DECIDED SUCH OUTBURSTS SEEMED A BIT GHOULISH GETTING PATIENTS' PERMISSION PROVED THORNY TOO UNDER FDA RULES PATIENTS OR THEIR CLOSE RELATIVES MUST READ AND SIGN AN INFORMED CONSENT FORM THAT SPELLS OUT POSSIBLE RISKS OF AN EXPERIMENTAL DRUG UNIVERSITY OF VIRGINIA RESEARCHERS BELIEVED TIRILAZAD'S SIDE EFFECTS WERE SO MINOR THAT IF AN UNCONSCIOUS PATIENT ARRIVED ALONE AT A HOSPITAL THE PATIENT COULD BE ENTERED IN THE TRIAL UNDER A DOCTRINE OF PRESUMED CONSENT THE PATIENT'S FAMILY COULD GIVE FORMAL APPROVAL LATER THAT APPROACH DIDN'T PLAY WELL AT OTHER HOSPITALS LOS ANGELES COUNTY HOSPITAL WHICH UPJOHN HAD BEEN COUNTING ON FOR MANY PATIENTS TOOK AN EXTRA YEAR TO DEVELOP A CONSENT FORM THAT IT REGARDED AS BETTER PROTECTING PATIENTS' RIGHTS MOSTLY BECAUSE OF THAT DELAY THE LOS ANGELES HOSPITAL HAS ENROLLED IN THE STUDY ONLY THREE PATIENTS FAR FEWER THAN EXPECTED YET TRIAL ADMINISTRATORS SAY THAT ONCE PATIENTS OR THEIR FAMILIES SEE THE CONSENT FORM THEY RARELY FORGO THE TRIAL TIRILAZAD'S KNOWN SIDE EFFECTS ARE MODEST RAISED LIVER ENZYMES IN SOME TEST ANIMALS AND MINOR ACHES IN SOME HUMANS I CAN'T THINK OF ANY CASE WHERE A PATIENT HAS REFUSED CONSENT SAYS LAURIE ELDER A UNIVERSITY OF VIRGINIA NURSE NOT ALL PATIENTS GET TIRILAZAD THOUGH ALL GET CONVENTIONAL CARE BUT SOME ALSO GET INTRAVENOUS DOSES OF THE EXPERIMENTAL DRUG WHILE OTHERS GET A PLACEBO STATISTICIANS LATER COMPARE THE TWO GROUPS TO MEET FDA GUIDELINES UPJOHN ASSIGNS PATIENTS RANDOMLY SO THAT ONE GROUP DOESN'T START OUT HEALTHIER OR GET BETTER TREATMENT IT ALSO USES CODED PACKAGES TO MAKE TIRILAZAD AND THE PLACEBO INDISTINGUISHABLE TO TESTERS THAT DOUBLEBLINDING LETS UPJOHN MONITOR THE DRUG'S EFFECTS WITHOUT BEING LED ASTRAY BY GAINS DOCTORS AND PATIENTS HOPE IT IS CAUSING BUT DOCTORS AND NURSES OFTEN TRY TO GUESS WHO IS GETTING THE DRUG AT THE MAYO CLINIC NURSE NICOLEE FODE NOTICED THAT SEVERAL PATIENTS HAD MINOR IRRITATION AT THE ENTRY SITE OF THEIR IV TUBE I THOUGHT AHA I'VE FIGURED IT OUT MS FODE RECALLS BUT SHE LATER LEARNED THAT THE IRRITATION WAS CAUSED BY A CITRATE SOLUTION IN WHICH THE DRUG WAS MIXED AND THAT PLACEBO PATIENTS ALSO GOT THE CITRATE SOLUTION PATIENTS MEANWHILE FIND THEY BECOME NONSTOP DATA BANKS IN A TYPICAL TWOWEEK HOSPITALIZATION THEY GET 40 DOSES OF TIRILAZAD UNDERGO 22 BLOOD TESTS AND HAVE A TOTAL OF 168 ENZYMES AND BLOOD GASES ANALYZED EXTRA BRAIN SCANS AND NEUROLOGICAL TESTS ARE DONE NURSES MAY NEED A TROLLEY JUST TO WHEEL A SINGLE PATIENT'S RECORDS AROUND AT THE TIME MOST PATIENTS DON'T MIND WHEN MR DELLINGER BEGAN HIS TIRILAZAD DOSAGE IN OCTOBER 1992 HE WAS RECOVERING FROM A 10HOUR BRAIN OPERATION TO HIS FAMILY'S DELIGHT HE BEGAN CHATTING ABOUT THAT DAY'S PRO FOOTBALL GAMES WHEN THE ANESTHETIC WORE OFF THOUGH WEAK AND GROGGY HE WASN'T COMPLAINING I KNEW I WAS ONE OF THE LUCKY ONES HE SAYS BUT THE QUEST FOR DATA CAN INFRINGE ON PATIENT CARE MAYO CLINIC'S DR PIEPGRAS BALKED AT REQUESTS TO LEAVE INTRAVENOUS LINES IN ALL PATIENTS FOR TWO WEEKS ANY IV LINE CAN CAUSE IRRITATION AND BLOOD CLOTS HE OBSERVES ADDING THAT IT SEEMED TO BE AN UNNECESSARY RISK FOR PATIENTS WHO HAD RECOVERED FAST HE PERSUADED UPJOHN AND THE UNIVERSITY OF VIRGINIA TO LET HIM DISCHARGE HEALTHY PATIENTS AHEAD OF SCHEDULE EVEN IF FULL DATA HADN'T BEEN GATHERED AFTER PATIENTS' HEALTH STABILIZES AND THEY LEAVE THE HOSPITAL MANY OF THEM AND THEIR FAMILIES ASK MORE QUESTIONS ALTHOUGH MR DELLINGER RECOVERED ENOUGH TO RETURN TO WORK AS A SALES MANAGER FOR A FOOD WHOLESALER HIS WIFE SAYS SHE OFTEN WONDERS WHETHER HE GOT TIRILAZAD OR THE PLACEBO BUT THE HOSPITAL ISN'T VOLUNTEERING THE INFORMATION NOR THAT THE DELLINGERS COULD FIND OUT BY FILING A WRITTEN REQUEST THAT IT WOULD FORWARD TO UPJOHN OF GREATER CONCERN IS WHETHER DOCTORS CAN SPOT ANY PATIENT BEING HURT BY A TRIAL DRUG AND WITHDRAW IT IN TIME HAUNTING RESEARCHERS IS THE CASE OF FIALURIDINE AN ELI LILLY & CO COMPOUND MEANT TO FIGHT HEPATITIS B FIVE PATIENTS DIED IN TRIALS BEFORE RESEARCH WAS HALTED LAST JUNE IN THE TIRILAZAD STUDY NURSES COLLECT HOURLY DATA ON EACH PATIENT AND DOCTORS CAN STOP USING THE DRUG AT ANY TIME MEANWHILE A SAFETY COMMITTEE OF INDEPENDENT STATISTICIANS AND DOCTORS REVIEWS PATIENT DEATHS AND MAJOR COMPLICATIONS THE PANEL RUN BY UNIVERSITY OF TORONTO NEUROSURGEON CHARLES DRAKE CAN BREAK THE ANONYMOUS CODE FOR ANY PATIENT OR STOP THE ENTIRE TRIAL IF PATIENT HEALTH APPEARS AT RISK SO FAR NO SUCH PROBLEM HAS OCCURRED DR DRAKE SAYS STILL AHEAD FOR UPJOHN IS THE FDA'S REVIEW OF PATIENT DATA IF REGULATORS CONSIDER TIRILAZAD SAFE AND EFFECTIVE THEY CAN APPROVE IT IF DOUBTFUL THEY CAN ASK FOR MORE DATA OR REJECT THE DRUG ENTIRELY SUCH REVIEWS INEVITABLY ARE FILLED WITH TENSION REGULATORS WANT TO KEEP DANGEROUS OR POORLY DOCUMENTED DRUGS OFF THE MARKET AND THEY APPROACH EACH NEW FILING WITH SKEPTICISM DRUG COMPANIES ARE ADVOCATES OBSERVES ROBERT TEMPLE AN FDA OFFICIAL IN CHARGE OF NEWDRUG APPROVALS THAT DOESN'T MEAN THAT THEY ARE LIARS BUT THEY ARE ADVOCATES DRUG DEVELOPERS IN TURN FEEL BURDENED BY A SYSTEM IN WHICH REGULATORS HAVE LITTLE TO GAIN BY PROMPTLY APPROVING A GOOD DRUG BUT MUCH TO LOSE IF A BAD ONE SLIPS THROUGH CONVINCED THAT THE TINIEST RECORDKEEPING FLAW MIGHT ATTRACT THE FDA'S SUSPICION NURSES AND STATISTICIANS AT THE UNIVERSITY OF VIRGINIA FRET OVER DATA ALMOST OBSESSIVELY SOME MATERIAL ENTERING MASTER FILES IS CHECKED 61 TIMES ALONG THE WAY SAYS NURSE NANCY TISDALE ESPECIALLY FRANTIC SCRAMBLES INVOLVE PATIENTS WHO START A STUDY BUT DON'T STAY TILL THE END DROPOUTS ARE A PLAGUE OF ANY STUDY THE FDA'S DR TEMPLE SAYS ONE CAN'T TELL WHETHER THE SICKEST OR THE HEALTHIEST PATIENTS ARE DISAPPEARING HE SAYS AS A RESULT HIGH DROPOUT RATES JEOPARDIZE ANY STATISTICAL CONCLUSIONS FROM A STUDY SO NURSES AT EACH HOSPITAL STRIVE TO MAKE SURE THAT SUBJECTS DON'T DISAPPEAR EVEN AFTER THEY ARE DISCHARGED A SAN DIEGO HOSPITAL TRACKED DOWN ONE EXPATIENT IN MEXICO CITY AND PAID 500 FOR HIM TO BE DRIVEN BACK TO THE US FOR A FOLLOWUP EXAM AND AN EAST COAST NURSE FOUND A WAY TO SIPHON DATA FROM UNITED PARCEL SERVICE TO TRACK DOWN FORMER PATIENTS WHO HAVE MOVED I'M NOT SURE IT'S TOTALLY LEGAL THE NURSE SAYS BUT IT WORKS NOW UPJOHN IS STRAINING TO GET TIRILAZAD BEFORE THE FDA THE DRUG'S 17YEAR PATENT IS ALREADY MORE THAN A YEAR OLD AND EVEN THE MOST OPTIMISTIC ANALYSTS THINK IT WILL TAKE FAST WORK IF TIRILAZAD IS TO BE APPROVED IN THE US THIS YEAR THE NONUS STUDY OF HEMORRHAGE PATIENTS WAS COMPLETED LAST SUMMER AND SHOWED SIZABLE GAINS FOR PATIENTS GETTING TIRILAZAD BUT THE US STUDY A CRUCIAL PART OF ANY FDA FILING ISN'T EXPECTED TO END UNTIL JUNE SIX MONTHS BEHIND SCHEDULE AS WORD OF THE OVERSEAS STUDY REACHED WALL STREET LAST FALL ANALYSTS VOICED GROWING OPTIMISM ABOUT TIRILAZAD WHICH UPJOHN CALLS FREEDOX IT'S SIMPLY A MATTER OF TIME FOR A BLOCKBUSTER DRUG TO EMERGE IN THIS CATEGORY SAYS SHERRY SAMOTIN AN ANALYST AT WILKERSON GROUP IN NEW YORK SHE REGARDS TIRILAZAD AS A FRONTRUNNER IN A RACE WITH HALFADOZEN DRUG COMPANIES BUT TO PEOPLE WORKING TO GET TIRILAZAD TO MARKET A RACE IS THE WRONG ANALOGY THEY SEE IT MORE AS A TUGOFWAR OR ARMWRESTLING MATCH WHAT I FIND MOST FASCINATING ABOUT THIS PROCESS ARE THE MULTIPLE LOGICS SAYS WAYNE ALVES HEAD OF NEUROCLINICAL TRIALS AT THE UNIVERSITY OF VIRGINIA THERE'S A MEDICAL LOGIC A REGULATORY LOGIC A DRUGDEVELOPMENT LOGIC AND A SCIENTIFIC LOGIC ALL OF THEM MAKE SENSE IN THEIR OWN WORLDS BUT ALL THESE COMPETING LOGICS HAVE TO BE TRADED OFF IF A TRIAL IS EVER GOING TO BE COMPLETED 9401070130 940107 QUARTERLY MUTUAL FUNDS REVIEW NEW OFFERINGS IN 1993 OF CLOSEDEND FUNDS HIT A RECORD NUMBER NEW YORK NEW OFFERINGS OF CLOSEDEND INVESTMENT FUNDS NUMBERED A RECORD 123 IN 1993 BUT RAISED LESS MONEY OVERALL THAN THE PRIOR YEAR CLOSEDEND STOCK AND BOND FUNDS TOGETHER RAISED 1743 BILLION THAT WAS BEHIND 1992'S RECORD OF 1798 BILLION FROM 99 OFFERINGS THE DECLINE REFLECTS A DROP IN MUNICIPALBONDFUND OFFERINGS DEMAND DECLINED SHARPLY FOR CLOSEDEND MUNI FUNDS IN THE FOURTH QUARTER ONLY FIVE NEW OFFERINGS WERE PRICED COMPARED WITH 23 IN THE 1992 QUARTER OF THE YEAR'S TOTAL EQUITY FUNDS RAISED 2 BILLION THROUGH 14 OFFERINGS BOND FUNDS RAISED 154 BILLION THROUGH 109 OFFERINGS ACCORDING TO LIPPER ANALYTICAL SERVICES INC CLOSEDEND FUNDS WHICH TRADE LIKE STOCKS CAN BE FOUND MOSTLY ON THE NEW YORK STOCK EXCHANGE IN TRADING AFTER THEIR OFFERINGS SOME OF THE CLOSEDEND FUNDS THAT INVEST IN EMERGING MARKETS HAVE BEEN ESPECIALLY STRONG PERFORMERS FOR EXAMPLE THE LATIN AMERICA INVESTMENT FUND MEXICO FUND MEXICO EQUITY & INCOME FUND CHILE FUND AND MALAYSIA FUND ARE ALL TRADING MORE THAN 50 ABOVE THE PAST YEAR'S LOWS INVESTORS REACTED TO THE STRONG OVERSEAS STOCK MARKETS BY BIDDING UP THE SHARE PRICES OF FOREIGN EQUITY CLOSEDEND FUNDS BECAUSE CLOSEDEND FUNDS TRADE ON EXCHANGES THEIR SHARE PRICES ARE SET BY SUPPLY AND DEMAND AND THEY CAN TRADE ABOVE OR BELOW THE PERSHARE VALUE OF THE FUNDS' PORTFOLIO OF INVESTMENTS SHARES THAT TRADE ABOVE THE FUNDS' NET ASSET VALUE ARE SAID TO BE AT A PREMIUM WHILE SHARES TRADING BELOW ARE AT A DISCOUNT AT THE END OF 1993 FOREIGN CLOSEDEND STOCK FUNDS HAD SURGED TO A PREMIUM OF 11 ABOVE NET ASSET VALUE THAT PREMIUM WAS WELL ABOVE THE SLIGHT 14 PREMIUM OF THESE FUNDS ON SEPT 30 AND A BIG CHANGE FROM THE 38 DISCOUNT ON AVERAGE AMONG THESE FUNDS AT THE END OF 1992 ACCORDING TO LIPPER DOMESTICSTOCK FUNDS WALLOWED IN THE DEPTHS IN COMPARISON CLOSEDEND STOCK FUNDS INVESTING IN US STOCKS ENDED THE YEAR AT A DISCOUNT OF 40 FROM THE FUNDS' NET ASSET VALUE PER SHARE BARELY CHANGED FROM THE 41 DISCOUNT AT THE END OF 1992 USSTOCK FUND DISCOUNTS ACTUALLY EXPANDED SLIGHTLY IN THE FOURTH QUARTER WIDENING FROM A 36 DISCOUNT AT SEPT 30 CLOSEDEND BOND FUNDS FELL TO DISCOUNTS AT THE END OF 1993 DOWN FROM SLIGHT PREMIUMS AT THE END OF 1992 THE DISCOUNTS REFLECTED INVESTOR FEARS OF RISING INTEREST RATES WHICH HURT BOND PRICES MUNICIPALBOND FUNDS FELL TO A DISCOUNT OF 33 FROM A PREMIUM OF 12 AT THE END OF 1992 TAXABLEBOND FUNDS FELL TO A DISCOUNT OF 13 COMPARED WITH A PREMIUM OF 15 AT THE END OF 1992 9401070129 940107 WHO'S NEWS PACIFIC TELESIS GROUP PACIFIC TELESIS GROUP SAN FRANCISCO PETER DARBEE WAS NAMED VICE PRESIDENT OF BOTH THIS TELEPHONE COMPANY AND ITS PACIFIC BELL UNIT MR DARBEE 40 YEARS OLD WAS ALSO NAMED CONTROLLER OF THE UNIT A NEW POSITION MR DARBEE WAS FORMERLY A VICE PRESIDENT AND COLEADER AT GOLDMAN SACHS & CO'S ENERGY AND TELECOMMUNICATIONS GROUP IN THE INVESTMENT BANKING SERVICES DEPARTMENT 9401070128 940107 VISITING HONG KONG TRY CAMPING OUT MORE TOURISTS IN COLONY PROMPT HOTELS TO LIFT RATES BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG TRAVELING TO HONG KONG BOOK YOUR HOTEL EARLY AND PULL OUT YOUR WALLET IT'S A SELLER'S MARKET SOARING DEMAND FROM TOURISTS AND BUSINESS TRAVELERS COMBINED WITH A TIGHT SUPPLY OF ROOMS HAVE LIFTED AVERAGE HOTEL OCCUPANCY RATES HERE TO RECORD LEVELS WITH LITTLE NEW SUPPLY SCHEDULED FOR THE MARKET HOTEL EXECUTIVES AND ANALYSTS SAY ROOM RATES ARE LIKELY TO RISE WITH INCREASING VISITOR TRAFFIC AT LEAST FOR THE NEXT YEAR OR TWO NO MAJOR ADDITIONS ARE PLANNED FOR THE FOURSTAR AND FIVESTAR CATEGORY IN THE MIDRANGE MARKET ROOM SUPPLY IS ACTUALLY SHRINKING AS HOTELS THOUGH PROFITABLE ARE BEING REDEVELOPED TO MAKE WAY FOR HIGHERYIELDING OFFICE AND COMMERCIAL PROPERTIES EARLY LAST YEAR BANGKOKBASED BUSINESS CONSULTANT STEVE RASIN COULD WALK INTO THE LUK KWOK HOTEL NEAR HIS COMPANY'S HONG KONG OFFICE AND CHECK IN WITHOUT A RESERVATION BY MIDYEAR HE HAD TO BOOK TWO WEEKS IN ADVANCE IN OCTOBER EVEN THAT DIDN'T GET HIM A ROOM AT THE LUK KWOK OR OTHER HOTELS IN THE AREA SO MR RASIN A SENIOR ASSOCIATE WITH TECHNOMIC CONSULTANTS INTERNATIONAL OF THE US WHO VISITS HERE OFTEN HAD TO SETTLE FOR A HOTEL SEVERAL SUBWAY STOPS AWAY AND HE HAD TO PAY 30 MORE FOR A SMALLER ROOM WITH NO DESK NO INROOM FAX MACHINE AND NO SATELLITE TELEVISION YOU HAD TO PAY FOR MOVIES HE SAYS THIS IS GOING TO BE A FANTASTIC YEAR SAYS DARIO REGAZZONI VICE PRESIDENT OF OPERATIONS ASIA OF CONRAD HOTELS THE INTERNATIONAL ARM OF HILTON HOTELS CORP OF THE US AND GENERAL MANAGER OF THE CONRAD HONG KONG THE DELUXE HOTEL WHICH WAS 90 BOOKED IN OCTOBER HAD AN AVERAGE 1993 OCCUPANCY RATE OF 80 HE SAYS THE OUTLOOK IS VERY ROSY ADDS RICHARD TADROS SENIOR VICE PRESIDENT AT HONG KONGBASED REGAL HOTELS INTERNATIONAL LTD WHICH OPERATES FOUR HOTELS IN THE COLONY OVERALL HONG KONG HOTELS ENJOYED AN AVERAGE OCCUPANCY RATE OF 87 FOR THE FIRST 11 MONTHS OF 1993 THE LATEST PERIOD FOR WHICH FIGURES ARE AVAILABLE ACCORDING TO THE HONG KONG TOURIST ASSOCIATION THIS YEAR THE AVERAGE IS EXPECTED TO EXCEED 90 ACCORDING TO PEREGRINE BROKERAGE LTD WHICH RECENTLY PUBLISHED A STUDY OF ASIAN TOURISM THOSE NUMBERS SHOW HOW THE LAW OF SUPPLY AND DEMAND IS WORKING IN FAVOR OF HOTELS IN THE FIRST 10 MONTHS OF 1993 74 MILLION PEOPLE MORE THAN HALF OF THEM TOURISTS VISITED HONG KONG UP 13 FROM A YEAR EARLIER PEREGRINE FORECASTS GAINS OF 14 THIS YEAR AND 15 NEXT YEAR HOWEVER THE SUPPLY OF HOTEL ROOMS THE HKTA PROJECTS WILL GROW ONLY ABOUT 45 DURING THE NEXT TWO YEARS THE RESULTING SQUEEZE PROMPTS HOTELIERS HERE TO PREDICT THAT ROOM RATES WILL CLIMB AS MUCH AS 30 THIS YEAR AT THE POSH PENINSULA THE COLONY'S PRICIEST INN AND THE FLAGSHIP OF HONGKONG & SHANGHAI HOTELS LTD'S PENINSULA GROUP THE PUBLISHED RATE FOR A DOUBLE ROOM NOW STANDS AT HK2450 US316 A NIGHT ROUGHLY THE SAME AS IN 1990 GENERAL MANAGER FELIX BIEGER WARNS HOWEVER THERE DEFINITELY WILL BE AN INCREASE IN 1994 DESPITE THE FACT THAT THE PENINSULA IS BUILDING A 132ROOM EXTENSION SCHEDULED FOR COMPLETION LATER THIS YEAR AT THE CONRAD ONE OF THREE HOTELS ATOP THE UPMARKET PACIFIC PLACE MALL IN THE CENTRAL BUSINESS DISTRICT THE RATE FOR A DOUBLE WAS HK1536 LAST MONTH UP 40 FROM TWO YEARS EARLIER AND AT THE MIDRANGE CENTURY HONG KONG HOTEL A MEMBER OF HONG KONGBASED CENTURY INTERNATIONAL HOTELS GROUP THE SINGLEROOM TARIFF ROSE IN SEPTEMBER TO HK1300 FROM HK1100 NONETHELESS THE CENTURY ENDED UP WITH AVERAGE OCCUPANCY OF 90 FOR 1993 SOME TRAVEL AGENTS FRET THAT HIGHER RATES COULD START TO DIVERT TOURISTS TO OTHER DESTINATIONS IN SEPTEMBER 1993 ACCORDING TO TRAVEL BUSINESS ANALYST AN INDUSTRY NEWSLETTER AN INTERNATIONALSTANDARD ROOM AVERAGED US10214 IN SINGAPORE US8023 IN BANGKOK AND A HIGHER US11603 IN HONG KONG TOUR OPERATORS COMPLAINING THAT PRICE INCREASES PUT HONG KONG AT A DISADVANTAGE TO SINGAPORE AND BANGKOK SAY THEY'VE RECENTLY FACED RATE INCREASES UP TO 70 WHEN RENEGOTIATING GROUP CONTRACTS WITH LOCAL HOTELS HONG KONG HOTELIERS COUNTER THAT UPSCALE ACCOMMODATIONS HERE ARE STILL CHEAPER THAN IN OTHER CITIES WITH HIGH CONCENTRATIONS OF FOUR AND FIVESTAR HOTELS THERE ARE FIVE GREAT CITIES IN THE WORLD NEW YORK PARIS LONDON TOKYO AND HONG KONG SAYS MR REGAZZONI OF THE CONRAD IF YOU COMPARE US TO THE OTHER FOUR CITIES WE'RE STILL RELATIVELY CHEAP INDEED ACCORDING TO INTERNATIONAL HOTEL CONSULTANCY PKF CONSULTING ROOM RATES IN 1992 THE MOST RECENT YEAR FOR WHICH FIGURES ARE AVAILABLE AVERAGED US220 IN PARIS US162 IN LONDON US134 IN NEW YORK AND US187 IN TOKYO BUT JUST US9786 IN HONG KONG PEOPLE ARE SPOILED SAYS MR TADROS OF REGAL THEY'RE GETTING A VERY GOOD BUY IN HONG KONG IN THE MIDRANGE MARKET MEANWHILE SOARING LAND AND LABOR COSTS PROMPT MANY DEVELOPERS TO PURSUE HIGHYIELD LOWERMAINTENANCE OFFICE AND COMMERCIAL PROJECTS AT THE EXPENSE OF LABOR AND MANAGEMENTINTENSIVE HOTELS AMONG THE HOTELS THAT HAVE CLOSED OR WILL SOON DO SO TO MAKE WAY FOR OTHER DEVELOPMENTS ARE THE 660ROOM LEE GARDENS HOTEL THE 316ROOM CHINA HARBOUR VIEW THE 178ROOM CHINA MERCHANTS HOTEL THE 313ROOM AMBASSADOR HOTEL AND THE 187ROOM HOTEL FORTUNA VIRTUALLY EVERY ROOM IN THE FORTUNA A 30YEAROLD THREESTAR HOTEL THAT CATERS MAINLY TO TAIWANESE AND SOUTHEAST ASIANS HAS BEEN TAKEN IN THE LAST THREE MONTHS BUT AFTER VERY DETAILED CALCULATIONS THE MANAGEMENT STILL DECIDED TO REDEVELOP THE SITE INTO A COMMERCIAL COMPLEX SAYS A FORTUNA EXECUTIVE WHO ASKED NOT TO BE IDENTIFIED THERE'S DEFINITELY GOING TO BE A SHORTAGE OF MIDRANGE HOTELS IF THE TREND CONTINUES THE FORTUNA IS OWNED BY WING ON INTERNATIONAL HOLDINGS LTD OF HONG KONG IN FACT THE STOCK OF MIDRANGE HOTELS IN HONG KONG IS SHRINKING AT A TIME WHEN ARRIVALS FROM CHINA TAIWAN AND SOUTHEAST ASIA THE MAIN USERS OF SUCH HOTELS ARE SURGING IN 1993 17 MILLION MAINLAND CHINESE UP FROM 11 MILLION IN 1992 VISITED HONG KONG ACCOUNTING FOR ABOUT 20 OF TOTAL ARRIVALS ACCORDING TO THE HKTA THEIR SHARE WAS EXCEEDED ONLY BY THE TAIWANESE WITH 21 THE PENINSULA'S MR BIEGER WHO IS ALSO CHAIRMAN OF THE HONG KONG HOTELS ASSOCIATION SAYS THAT FOR THE FIRST TIME IN HIS 40 YEARS HERE THE COLONY IS LOSING HOTEL ROOMS TO OFFICES THE HOTEL ASSOCIATION AND THE HKTA ARE URGING THE GOVERNMENT TO ALLOCATE LAND TO HOTEL DEVELOPERS AT PREFERENTIAL PRICES AND TO GRANT THEM TAX HOLIDAYS TO SPUR CONSTRUCTION IN 1992 TOURISM BROUGHT IN HK48 BILLION SECOND ONLY TO EXPORTS OF TEXTILES AND GARMENTS EVEN SO SAYS PENNY BYRNE ASSISTANT MANAGER OF PUBLIC RELATIONS AT THE HKTA IF IT'S CHEAPER TO KNOCK DOWN A HOTEL AND BUILD AN OFFICE BUILDING THE GOVERNMENT IS SAYING IT CAN DO WITHOUT TOURIST REVENUE 9401070127 940107 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 3 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 312 30 TO 59 DAYS 315 60 TO 89 DAYS 318 90 TO 119 DAYS 322 120 TO 149 DAYS 324 150 TO 179 DAYS 332 180 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 322 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 259 TWO MONTHS 265 THREE MONTHS 282 SIX MONTHS 304 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 315 ONE MONTH 325 THREE MONTHS 338 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 308 60 DAYS 312 90 DAYS 317 120 DAYS 323 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 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 586 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 704 60 DAYS 712 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 702 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 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 9401070125 940107 HP DIGITAL BECOME PC HEAVYWEIGHTS MANAGEMENT LUCK CITED IN IMPRESSIVE TURNAROUNDS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA THIS IS A TALE OF TWO COMPANIES BOTH FAMOUS BRAND NAMES IN THE WORLDWIDE COMPUTER INDUSTRY AND BOTH INFAMOUS FLOPS AT ONE OF ITS HOTTEST SPECIALTIES PERSONAL COMPUTERS UNTIL LATELY THAT IS AGAINST ALL THE ODDS HEWLETTPACKARD CO AND DIGITAL EQUIPMENT CORP HAVE MANAGED IN THE PAST TWO YEARS TO TRANSFORM THEIR ONCEPIDDLING PC BUSINESSES INTO WHAT INDUSTRY ANALYSTS NOW CALL CREDIBLE CONTENDERS ESPECIALLY HEWLETTPACKARD IN THE EUROPEAN MARKET THEY MAY STILL STUMBLE IN THE MONTHS AHEAD BUT THE TALE OF HOW THEY GOT EVEN THIS FAR IN EUROPE ILLUSTRATES THE SELLINGPOWER OF BIG BRAND NAMES IN TODAY'S CUTTHROAT PC MARKET PLUS THE IMPORTANCE OF A FEW LUCKY BREAKS THERE'S A BIT OF LUCK IN HEWLETTPACKARD'S PC PROGRESS ACKNOWLEDGES ALEXIS SOZONOFF GENERAL MANAGER OF HP'S COMPUTER PRODUCTS DIVISION IN EUROPE THE MIDDLE EAST AND AFRICA IT BEGAN ITS WORLDWIDE SALES PUSH JUST AS AN INDUSTRY PRICE WAR BEGAN MAKING BIGBRAND PCS AFFORDABLE TO MORE CONSUMERS PROMPTING A MASS EXODUS FROM NONAME CLONES TO HOUSEHOLD NAMES LIKE HP IT ALSO DIDN'T HURT THAT THE MARKET LEADERS INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP HAD LONG BACKLOGS OF UNFILLED ORDERS THAT AT ONE POINT LAST YEAR WERE DELAYING DELIVERIES OF SOME MODELS BY SEVERAL WEEKS RATHER THAN WAIT MANY SHOPPERS DECIDED TO CHECK OUT HP BUT GOOD MANAGEMENT ALSO HELPED ANALYSTS SAY AT HEWLETTPACKARD THEY'RE MAKING ALL THE RIGHT MOVES SAYS CHRISTOPHER FELL HEAD EUROPEAN PCINDUSTRY ANALYST FOR DATAQUEST INC A SAN JOSE CALIF MARKET RESEARCH FIRM HE ESTIMATES THAT HEWLETTPACKARD DOUBLED ITS SHARE OF EUROPEAN PC REVENUES TO 44 IN LAST YEAR'S THIRD QUARTER THE MOST RECENT PERIOD FOR WHICH IT HAS COMPILED SUCH DATA THAT PUSHED IT TO FOURTH PLACE IN THE EUROPEAN MARKET LIKEWISE DIGITAL RAISED ITS SHARE OF EUROPEAN INDUSTRY REVENUES TO 24 FROM 14 A YEAR EARLIER THOUGH IT STILL ISN'T IN THE TOP 10 DATAQUEST SAYS IN THE US DIGITAL'S PC DRIVE HAS ALSO FARED WELL BUT HEWLETTPACKARD'S US MARKET SHARE STILL LAGS BEHIND ITS SHARE IN EUROPE AS THE COMPANY HAS YET TO SHED FULLY ITS REPUTATION AS AN ALSORAN DATAQUEST'S MR FELL WARNS OF PITFALLS AHEAD FOR BOTH COMPANIES MOST OF DIGITAL'S PC SALES IN EUROPE HAVE BEEN TO CLIENTS THAT ALREADY OWN OTHER DIGITAL PRODUCTS A RELATIVELY EASY SELL WHAT THEY'VE GOT TO DO NOW IS BREAK OUT OF THAT BUSINESS MODEL AND ATTRACT BRANDNEW CUSTOMERS HE SAYS AND HP THOUGH BIGGER THAN DIGITAL TODAY IN EUROPE IS STILL A LONG WAY FROM CHALLENGING IBM COMPAQ AND APPLE COMPUTER INC WHICH TOGETHER COMMANDED 385 OF EUROPEAN PC MARKET REVENUES IN LAST YEAR'S THIRD QUARTER THERE'S A GREAT LEAP THAT NEEDS TO BE MADE TO START CATCHING UP HE SAYS CERTAINLY A FEW YEARS AGO MANY ANALYSTS SCOFFED AT EITHER COMPANY'S CHANCES OF GETTING ANYWHERE IN THE PC BUSINESS DIGITAL'S MOST FAMOUS FLOP WAS IN 1983 WITH ITS RAINBOW PC MODEL WHICH COULDN'T USE INDUSTRYSTANDARD SOFTWARE AND HEWLETTPACKARD HAD TRIED AND FAILED REPEATEDLY TO MAKE A MARK IN PCSPARTLY BECAUSE IT KEPT OVERCHARGING FOR THEM ANALYSTS SAY WHEN THE COMPANY BEGAN PLANNING YET ANOTHER ATTEMPT IN MAY 1992 EVEN SOME OF ITS OWN EMPLOYEES WERE SKEPTICAL SAYS MR SOZONOFF PEOPLE SAID IT WAS ALMOST LIKE A JOKE HE RECALLS BUT OPERATION HURRICANE AS HP'S EUROPEAN MANAGERS CODENAMED THEIR NEW PC CAMPAIGN WAS BETTER PLANNED THAN PAST EFFORTS WORLDWIDE THE COMPANY BEGAN OFFERING A RANGE OF NEW PC MODELS AND SET ITS PRICES TO BE WITHIN A FEW PERCENTAGE POINTS OF COMPAQ'S MODELS THE INDUSTRY'S MOSTCOMMON BENCHMARKS FOR PC PRICES TO PERMIT SUCH PRICES IT CUT ITS COSTS BY REORGANIZING ITS PC OPERATIONS IN EUROPE IT TOLD ITS 100 COMPUTERPRODUCTS SALESPEOPLE THAT THOU SHALT NOT LOSE AN ORDER TO COMPETITORS MR SOZONOFF SAYS AND REQUIRED INTERNAL REVIEWS OF ANY BIG LOSSES MOST IMPORTANT ANALYSTS SAY IT SUCCEEDED IN GETTING MANY OF ITS COMPUTERPRINTER DEALERS IN EUROPE TO START STOCKING ITS PCS AS WELL BY NO MEANS AN EASY FEAT MANY ALREADY STOCKED IBM COMPAQ AND OTHER PC MODELS AND WOULDN'T NORMALLY WANT THE EXTRA COSTS OF YET ANOTHER BRAND THAT'S WHERE HP'S LUCK CAME IN HANDY AS THE BOOM IN BRANDNAME COMPUTERS BEGAN AND SOME IBM AND COMPAQ MODELS WERE IN SHORT SUPPLY MANY DEALERS BEGAN OFFERING THEIR CUSTOMERS IMMEDIATE DELIVERIES OF HP PCS INSTEAD DIGITAL BY CONTRAST WAS STARTING FROM EVEN FURTHER BEHIND THAN HEWLETTPACKARD UNTIL A FEW YEARS AGO IT DIDN'T EVEN HAVE MANY PC MODELS OF ITS OWN DESIGN PREFERRING TO RESELL OTHER BRANDS UNDER ITS OWN NAME GRADUALLY IT CORRECTED THAT MANUFACTURING NEW MODELS OF ITS OWN AND CUTTING OUTSIDE PURCHASES THAT REDUCED DIGITAL'S COSTS AND LET IT SET PRICES AT ABOUT INDUSTRY AVERAGES IT MADE ITS WORLDWIDE PC BUSINESS A SEPARATE UNIT TO CUT BUREAUCRACY AND COSTS IT ALSO ASSEMBLED A NEW TEAM OF EXPERIENCED PC MANAGERSLED IN EUROPE BY BERNARD AUER A DEFECTOR FROM COMPAQ AND APPLYING THE SAME BASIC MARKETING FORMULAS IN EUROPE AS IN THE US IT SENT PRODUCT CATALOGS AND SALESPEOPLE TO MANY EXISTING DIGITAL CUSTOMERS TO GET DIGITAL'S PCS ON THEIR CORPORATE PROCUREMENT LISTS IN EUROPE TODAY MR AUER SAYS ABOUT 80 OF DIGITAL'S PC SALES ARE TO OWNERS OF OTHER DIGITAL PRODUCTS TO BROADEN THE CLIENTELE MR AUER SAYS HE AIMS TO ENLIST MORE INDEPENDENT PC DISTRIBUTORS AND DEALERS RATHER THAN CONTINUE RELYING ON DIGITAL'S OWN SALES FORCEPROVIDED INTERNAL OBSTACLES ALLOW IT FOR INSTANCE HE SAYS HE WANTS TO AWARD BONUSES TO DIGITAL SALESPEOPLE WHO PASS ON GOOD SALES LEADS TO INDEPENDENT DIGITAL DEALERS A COMMON PRACTICE IN THE PC INDUSTRY THAT KEEPS DEALERS HAPPY AND SALES COSTS LOW BUT THAT'S A BREAK FROM DIGITAL TRADITION HE SAYS THAT WHILE DIGITAL'S NORDICCOUNTRY MANAGERS PLAN TO START THE BONUSES ITS BRITISH MANAGERS THINK THEY'RE ALREADY DOING WELL ENOUGH WITHOUT SUCH INCENTIVES NATURALLY BOTH COMPANIES HAVE BIG PLANS FOR THE FUTURE DIGITAL'S MR AUER AIMS TO DOUBLE EUROPEAN PC SALES IN THE CURRENT FISCAL YEAR THAT BEGAN LAST JULY 4 TO MORE THAN 300000 MACHINES WORTH MORE THAN 500 MILLION HEWLETTPACKARD'S MR SOZONOFF SAYS HE AIMS THIS YEAR TO REPEAT LAST YEAR'S PERFORMANCE OF INCREASING EUROPEAN PC REVENUES BY ABOUT 60 THOUGH HE DECLINES TO PROVIDE REVENUE FIGURES HE INDICATES HP LAST YEAR SOLD MORE THAN 350000 PCS IN EUROPE AT AVERAGE WHOLESALE PRICES OF 1800 APIECE THAT'S WORTH AT LEAST 630 MILLION HIS ULTIMATE GOAL HE SAYS IS 7 TO 10 OF THE EUROPEAN PC MARKET TO GET THERE MR SOZONOFF ISN'T PLANNING ANY SPECIAL NEW TRICKS THERE REALLY IS NO MAGIC TO EXPANDING A PC BUSINESS HE SAYS THE KEY THING IS TO KEEP THE WHEELS CHURNING 9401070123 940107 BRAZIL VEHICLE OUTPUT SETS A RECORD FOR 1993 SPECIAL TO THE WALL STREET JOURNAL SAO PAULO BRAZIL BRAZIL'S AUTO INDUSTRY SAID IT SET A PRODUCTION RECORD IN 1993 WITH 14 MILLION VEHICLES THE INDUSTRY SAID WHEN YOU SET A GOAL OF 12 MILLION VEHICLES AND YOU SEE THESE FIGURES YOU CAN ONLY BE HAPPY SAID LUIZ ADELAR SCHEUER PRESIDENT OF THE NATIONAL ASSOCIATION OF AUTOMOTIVE MANUFACTURERS IN DECEMBER PRODUCTION WAS UP 45 FROM A YEAR EARLIER BUT WAS DOWN 17 FROM NOVEMBER THE INDUSTRY PRODUCED 111000 VEHICLES IN DECEMBER COMPARED WITH 76000 A YEAR EARLIER AND 133000 IN NOVEMBER THE INDUSTRY EXPORTED 331000 VEHICLES IN 1993 DOWN 33 FROM 342000 IN 1992 EXPORTS IN DECEMBER TOTALED 27200 VEHICLES UP 53 FROM A YEAR EARLIER BUT DOWN 23 FROM NOVEMBER BRAZIL EXPORTS AUTOS PRIMARILY TO ARGENTINA AND OTHER LATIN AMERICAN COUNTRIES THE FIGURES INCLUDE PASSENGER CARS TRUCKS AND BUSES 9401070122 940107 INTERNATIONAL BUNDESBANK WON'T CHANGE INTEREST RATES BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT BUNDESBANK PRESIDENT HANS TIETMEYER SAID THE GERMAN CENTRAL BANK WOULD KEEP INTERESTRATE POLICY UNCHANGED FOR THE TIME BEING BUT HE WOULDN'T RULE OUT FURTHER REDUCTIONS IF CONDITIONS WERE RIGHT THE BUNDESBANK'S POLICYSETTING CENTRAL BANK COUNCIL DECIDED YESTERDAY IN ITS FIRST MEETING OF THE YEAR TO KEEP ITS DISCOUNT AND LOMBARD RATES AT CURRENT LEVELS IT ALSO KEPT THE INTEREST RATE ON ITS OPENMARKET SECURITIESREPURCHASE AGREEMENTS FIXED AT 6 FOR TWO WEEKS WE WANTED TO SHOW THAT WE DON'T PLAN ANY CHANGES IN OUR POLICY NOW AND IN THE FORESEEABLE FUTURE MR TIETMEYER TOLD A GROUP OF FOREIGN JOURNALISTS LAST NIGHT AFTER THE COUNCIL'S DECISION WE WILL WAIT AND SEE HOW THINGS DEVELOP THE BUNDESBANK LAST REDUCED ITS OFFICIAL INTEREST RATES OCT 22 WHEN IT BROUGHT ITS DISCOUNT RATE THE RATE CHARGED FOR OVERNIGHT LOANS TO BANKS DOWN TO 575 AND LOWERED ITS LOMBARD RATE WHICH THE BANK CHARGES ON BORROWINGS THAT USE SECURITIES AS COLLATERAL TO 675 SINCE THEN THE CENTRAL BANK HAS BEEN SEEN INTERRUPTING ITS GRADUAL EASING PROCESS AS GROWTH IN ITS M3 BROADLYDEFINED MONEY SUPPLY CONTINUED TO OVERSHOOT GROWTH TARGETS IN LATE 1993 MR TIETMEYER SAID THAT POLICY COULD CHANGE IF INFLATION INDICATORS TURN MORE FAVORABLE EARLIER IN THE WEEK BUNDESBANK COUNCIL MEMBER HANSJUERGEN KOEBNICK SAID CENTRAL BANK POLICY MAKERS WERE PLANNING TO BRING SHORTTERM INTEREST RATES DOWN FURTHER OVER THE COURSE OF THE YEAR CLAIMING THEY WERE TOO HIGH FOR A COUNTRY STILL IN RECESSION MR TIETMEYER SAID HE DIDN'T DISAGREE WITH MR KOEBNICK BUT ADDED THAT HE MIGHT HAVE PUT IT A LITTLE DIFFERENTLY I HAVE ALWAYS SAID THAT OUR M3 TARGET DOESN'T RULE OUT FURTHER INTERESTRATE REDUCTIONS IF THE OTHER PREREQUISITES ARE IN PLACE MR TIETMEYER SAID AMONG THEM ARE INFLATION AND SUCH FACTORS AS THE EXCHANGE RATE FOR THE MARK WHICH MR TIETMEYER SAID THE BUNDESBANK CONTINUES TO MONITOR CLOSELY MR TIETMEYER ALSO SAID HE DIDN'T EXPECT A BROADBASED RECOVERY IN THE WESTERN GERMAN ECONOMY THIS YEAR HE SAID THAT ONLY EXPORTS CAN PULL THE ECONOMY OUT OF ITS MALAISE ASSERTING THAT THE GERMAN ECONOMY HAS NEVER RECOVERED FROM PAST SLUMPS ON ITS DOMESTIC ECONOMY ALONE BUNDESBANK OFFICIALS FEAR THAT MOVING SHORTTERM RATES DOWN TOO QUICKLY COULD REKINDLE INFLATION PRESSURES AND UNDERMINE THE CONFIDENCE OF FINANCIAL MARKETS IN THE MARK THIS COULD SLOW THE INFLOW OF CAPITAL GERMAN NEEDS TO FINANCE PUBLICSECTOR AND CURRENT ACCOUNT DEFICITS CAPITAL SHORTAGES COMBINED WITH NEW INFLATION CONCERNS COULD FORCE LONGTERM INTEREST RATES BACK UP FROM NEARHISTORIC LOWS OF 544 CURRENTLY THE BUNDESBANK ASSERTS THAT LONGTERM RATES ARE THE DECISIVE RATES FOR INVESTMENT DECISIONS BY GERMAN INDUSTRY BUT THE BUNDESBANK'S GOSLOW POLICY HAS BEEN CRITICIZED FOR PROLONGING GERMANY'S ECONOMIC SLUMP 9401070121 940107 TECHNOLOGY & MEDICINE EPA TO EXPAND LIST OF CHEMICALS ON TOXIC REPORT BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED DOUBLING THE NUMBER OF CHEMICALS WHOSE RELEASE INTO WATER OR AIR MUST BE REPORTED TO THE AGENCY BY MANUFACTURERS IN A RULE ISSUED UNDER THE 1986 EMERGENCY PLANNING AND COMMUNITY RIGHTTOKNOW ACT THE EPA PROPOSED ADDING 313 CHEMICALS TO THE LIST OF 320 CHEMICALS WHOSE EMISSIONS MANUFACTURERS ARE REQUIRED TO REPORT FOR THE EPA'S ANNUAL TOXIC RELEASE INVENTORY THE INCREASED REPORTING REQUIREMENTS WOULD BE ESPECIALLY SIGNIFICANT FOR PESTICIDE MANUFACTURERS AND PROCESSORS WHO EMIT MORE THAN HALF THE CHEMICALS THAT THE EPA PROPOSES TO ADD TO THE LIST UNDER THE PLAN THE PESTICIDE INDUSTRY WOULD HAVE TO MONITOR EMISSIONS OF 170 NEW CHEMICALS IN ADDITION TO THE 24 CHEMICALS THEY CURRENTLY MONITOR OTHER AFFECTED INDUSTRIES INCLUDE CHEMICAL MANUFACTURERS METAL FABRICATORS AND FOOD PROCESSORS THOMAS GILDING ENVIRONMENTAL AFFAIRS DIRECTOR FOR THE NATIONAL AGRICULTURAL CHEMICALS ASSOCIATION WHICH REPRESENTS THE PESTICIDE INDUSTRY SAID HIS GROUP WOULD SUPPORT THE NEW REQUIREMENT IF THE CRITERIA FOR INCLUDING THE NEW CHEMICALS ARE BASED ON RISK BUT IF A CHEMICAL IS ON THERE BECAUSE IT HAPPENS TO BE CALLED A PESTICIDE THEN WE'LL HAVE AN ISSUE WITH THAT HE SAID SINCE 1989 THE EPA HAS USED THE TOXIC RELEASE INVENTORY TO ALERT COMMUNITIES TO POTENTIALLY HARMFUL EMISSIONS OF CHEMICALS BY FACTORIES THE DATA HAVE BEEN A SIGNIFICANT PROD TO INDUSTRY TO REDUCE EMISSIONS SERVING AS AN EYE OPENER TO LOTS OF CEOS WHO ARE EMBARRASSED BY THE PUBLICITY THE FINDINGS RECEIVE ACCORDING TO EPA ADMINISTRATOR CAROL BROWNER THE EPA ALSO USES THE DATA IN ITS OWN ENFORCEMENT ACTIONS IN ADDITION TO PROPOSING YESTERDAY'S RULE THE AGENCY PLANS TO PROPOSE A REGULATION EXPANDING THE NUMBER OF INDUSTRIAL SECTORS THAT MUST REPORT TO THE TOXIC RELEASE INVENTORY CURRENTLY ONLY MANUFACTURERS ARE COVERED THE AGENCY IS CONSIDERING ADDING UTILITIES WHOLESALE DISTRIBUTORS AND MINING CONCERNS AMONG OTHERS 9401070120 940107 FOREIGN EXCHANGE DOLLAR RISES AGAINST MOST CURRENCIES DESPITE BEARISH US JOBLESS REPORT BY GARY ROSENBERGER AND XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE AGAINST EUROPEAN CURRENCIES UNDETERRED BY BEARISH US JOBLESS DATA AND A DECISION BY THE BUNDESBANK TO LEAVE GERMAN INTEREST RATES UNCHANGED BUT THE US CURRENCY FELL SLIGHTLY AGAINST THE YEN DAMPED BY REPORTS DURING ASIAN TRADING THAT US ECONOMIST C FRED BERGSTEN HAD URGED THE FEDERAL RESERVE TO PROP UP THE JAPANESE CURRENCY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17445 MARKS UP FROM 17395 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11265 YEN DOWN FROM 11290 YEN STERLING WAS TRADING AT 14815 DOWN FROM 14872 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11255 YEN AND AT 17435 MARKS THE DOLLAR BEGAN THE DAY TESTING THE DOWNSIDE WITH MR BERGSTEN'S REMARKS PROVIDING AN EARLY EXCUSE TO SELL THE US CURRENCY AGAINST THE YEN THE DOLLAR REMAINED MOSTLY STAGNANT UNTIL IT WENT INTO A SKID AFTER THE BUNDESBANK ANNOUNCED ITS INTENTION TO LEAVE ITS KEY LOMBARD AND DISCOUNT RATES UNDISTURBED AN HOUR LATER DATA WERE RELEASED SHOWING US JOBLESS CLAIMS UP 70000 IN THE WEEK ENDED JAN 1 THAT WAS ALMOST THREE TIMES THE EXPECTED RATE OF INCREASE AND IT APPEARED TO UNDERMINE WIDESPREAD HOPES THAT TODAY'S NONFARM PAYROLL DATA FOR DECEMBER WOULD PROVE BULLISH FOR THE US ECONOMY THE DOUBLE BLOW PUSHED THE DOLLAR TO A DAY'S LOW OF 17350 MARKS BUT IT HELD FAST AT THAT LEVEL BOOSTING TRADERS' OPTIMISM ABOUT THE US CURRENCY'S INNATE STRENGTH WE HAD LOUSY JOBLESS NUMBERS YET FAILED TO BREAK BELOW 17350 MARKS SAID DAVID WALKER SENIOR MANAGER OF TORONTO DOMINION SECURITIES INC THAT CAUSED PEOPLE TO TEST THE OTHER END OF THE RANGE HE ADDED AND TARGET LAST YEAR'S HIGH OF 17473 MARKS TRADERS SAID TODAY'S US MONTHLY NONFARM PAYROLL NUMBERS WOULD BE A CRITICAL TEST OF DOLLAR MOVEMENTS THE NUMBERS ARE OFTEN SEEN AS AN IMPORTANT MEASURE OF THE NATION'S ECONOMIC HEALTH AND BULLISH EXPECTATIONS ABOUT THOSE NUMBERS WERE CREDITED FOR SOME OF THE DOLLAR'S RISE LATE YESTERDAY ECONOMISTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT PREDICTED NONFARM PAYROLLS ROSE 239000 FOR DECEMBER SOME TRADERS HOWEVER SAY THE MARKET MAY BE TOO OPTIMISTIC AND THAT COULD PUT THE DOLLAR AT RISK TODAY IF THE PAYROLL NUMBER IS ANYTHING SHORT OF SPECTACULAR AS IF TO SUPPORT THAT CAUTION US LABOR SECRETARY ROBERT REICH SAID EARLY YESTERDAY THAT THE MONTHLY DATA WOULD SHOW A RISE OF 160000200000 THE BUREAU OF LABOR STATISTICS LATER EMPHASIZED THAT MR REICH HADN'T SEEN THE ACTUAL DECEMBER FIGURES AND WAS MAKING ONLY AN ESTIMATE IF TODAY'S EMPLOYMENT NUMBERS ARE SOFT WE MAY WELL SEE THE DOLLAR DROP TO 16900 MARKS AGAIN SAID CARL AMENDOLA VICE PRESIDENT OF BAYERISCHE HYPOTHEKENUND WECHSELBANK AG YET THE DOLLAR HELD FIRM YESTERDAY AGAINST THE MARK DESPITE AN ANNOUNCEMENT THAT THE BUNDESBANK WOULD LEAVE ITS MAIN INTEREST RATES UNCHANGED THE GERMAN CENTRAL BANK'S DECISION CAME AGAINST A BACKDROP OF A CURRENCY THAT HAD BEEN WEAKENING STEADILY SINCE THE CHRISTMAS HOLIDAYS MR AMENDOLA ARGUED THAT TRADERS WERE WELL PREPARED FOR THE BUNDESBANK'S NEWS THE MARKET WAS 75 SURE NOTHING WOULD HAPPEN AT THE 17400 LEVEL HE SAID NOTING THAT THE BUNDESBANK'S DIRECTORS FEARED THAT A RATE CUT WOULD FURTHER WEAKEN THE MARK AND POSSIBLY FUEL DOMESTIC INFLATION BY RAISING IMPORT PRICES 9401070119 940107 QUARTERLY MUTUAL FUNDS REVIEW CLOSEDEND BOND FUNDS LOOK CHEAP BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL DEPARTMENT STORES AREN'T THE ONLY PLACE FOR AFTERCHRISTMAS SALES BARGAINS ALSO BECKON IN PUBLICLY TRADED BOND FUNDS THERE ARE LOTS OF BARGAINS AROUND IN SUCH FUNDS SAYS THOMAS HERZFELD PRESIDENT OF THOMAS HERZFELD ADVISORS A MIAMI FIRM SPECIALIZING IN PUBLICLY TRADED MUTUAL FUNDS THIS IS HUNTING SEASON FOR CLOSEDEND BOND FUNDS AMONG MR HERZFELD'S FAVORITES ARE NUVEEN INSURED PREMIUM INCOME MUNICIPAL 2 AND NUVEEN PREMIUM INCOME MUNICIPAL 4 CURRENTLY AT DISCOUNTS OF 76 AND 97 RESPECTIVELY THESE TAXEXEMPT BOND FUNDS CAME TO MARKET LAST YEAR AT 15 A SHARE A 68 PREMIUM AND NOW TRADE AT ABOUT 13 A SHARE THEIR ASSETS MEANWHILE HAVE EDGED UP IN VALUE AND SHOULD CONTINUE TO GAIN ON RISING INVESTOR DEMAND AS THE TAX SEASON APPROACHES HE SAYS OF COURSE THE OUTLOOK FOR INTEREST RATES MAY JUSTIFY BOND FUNDS' DISCOUNTS AND THERE'S NO GUARANTEE THEIR CHEAP PRICES WON'T GET EVEN CHEAPER IN THE FUTURE THE APPARENT BARGAINS MAY ACCURATELY REFLECT REAL RISKS LURKING IN THESE FUNDS SOME ANALYSTS SAY IN PARTICULAR THE ANALYSTS POINT TO RIGHTS OFFERINGS NOW BEING PROMOTED BY CHICAGOBASED JOHN NUVEEN & CO ONE OF THE US'S BIGGEST SPONSORS OF CLOSEDEND BOND FUNDS TWO OF NUVEEN'S BIGGEST OLDEST FUNDS NUVEEN MUNICIPAL VALUE FUND AND NUVEEN PREMIUM INCOME MUNICIPAL FUND A PREDECESSOR TO MR HERZFELD'S PICKS ARE TARGETS OF SUCH OFFERINGS WHICH GIVE CURRENT SHAREHOLDERS THE RIGHT TO BUY NEW SHARES BEING ISSUED BY A FUND RIGHTS OFFERINGS ARE CONSIDERED TO BE BAD FOR FUND SHAREHOLDERS BECAUSE THEY DILUTE THEIR HOLDINGS AND OFTEN LEAD THEM TO BUY MORE SHARES WHEN PRICES ARE PEAKING THE MARKET IS SPOOKED THAT MORE SUCH DILUTING RIGHTS ISSUES WILL FOLLOW BUT FANS OF CLOSEDEND FUNDS SAY THE POTENTIAL HAZARDS ALREADY HAVE BEEN DISCOUNTED IN TODAY'S LOW PRICES AT LEAST TWO DOZEN OF PUBLICLY TRADED BOND FUNDS NOW ALLOW INVESTORS TO BUY A DOLLAR'S WORTH OF DIVERSIFIED BOND HOLDINGS FOR AS LITTLE AS 90 CENTS THEY SAY THAT'S A SWITCH FROM JUST A FEW MONTHS AGO WHEN THE SAME FUNDS SOLD FOR PRICES THAT WERE HIGHER THAN THE VALUE OF THE UNDERLYING BONDS PUBLICLY TRADED FUNDS OR CLOSEDEND FUNDS RESEMBLE NORMAL OPENEND MUTUAL FUNDS BUT WITH A FEW KEY DIFFERENCES UNLIKE OPENEND FUNDS WHICH CONSTANTLY ADJUST THE NUMBER OF SHARES OUTSTANDING IN LINE WITH INVESTOR DEMAND CLOSEDEND FUNDS ISSUE A FIXED NUMBER OF SHARES WHEN INDIVIDUALS PURCHASE OR CASH IN ON CLOSEDEND FUNDS THEY'RE AT THE MERCY OF WHAT OTHER INVESTORS THINK THOSE SHARES ARE WORTH AS A RESULT PRICES OF CLOSEDEND FUNDS UNLIKE THOSE OF OPENEND FUNDS DON'T NECESSARILY MATCH THEIR NET ASSET VALUES OR THE PERSHARE VALUE OF THE ASSETS IN THE FUNDS' PORTFOLIOS DEPENDING ON PREVAILING MARKET VIEWS PRICES MAY RISE ABOVE THE FUNDS' NET ASSET VALUES OR AS IS TYPICAL NOW SINK BELOW THEM IDENTIFYING A CHEAP CLOSEDEND FUND IS EASY IT MERELY REQUIRES COMPARING THE FUND'S PUBLICLY TRADED SHARE PRICE WITH ITS NET ASSET VALUE PER SHARE FUNDS USUALLY CALCULATE THEIR PERSHARE NET ASSET VALUE AT LEAST ONCE A WEEK THE WALL STREET JOURNAL PUBLISHES THIS DATA ON MONDAYS ALONG WITH THE FUND'S SHARE PRICE AND THE SIZE OF THE DISCOUNT OR PREMIUM DISCOUNTS PREDOMINATE AMONG BOND FUNDS LATELY CLOSEDEND FUNDS SPECIALIZING IN TAXEXEMPT MUNICIPAL BONDS HAVE BEEN TRADING AT AN AVERAGE DISCOUNT OF 42 ACCORDING TO LIPPER ANALYTICAL SERVICES LAST SUMMER THESE SAME FUNDS TRADED AT AN AVERAGE PREMIUM OF 07 SIMILARLY CLOSEDEND FUNDS THAT INVEST IN TAXABLE BONDS HAVE BEEN SHOWING AN AVERAGE DISCOUNT OF 14 COMPARED WITH AN AVERAGE PREMIUM OF 06 AS RECENTLY AS SEPT 30 WHY THE TURNABOUT SUPPLY HAS DEMONSTRABLY EXCEEDED DEMAND SAYS RON OLIN OF DEEP DISCOUNT ADVISERS AN ASHEVILLE NC MONEY MANAGER SPECIALIZING IN CLOSEDEND FUNDS ON THE SUPPLY SIDE FUND SPONSORS FLOODED THE MARKET LAST YEAR WITH NEW FUND OFFERINGS DESIGNED TO PROFIT FROM THENFALLING INTEREST RATES DEMAND MEANWHILE HAS FALLEN AFTER A REBOUND IN RATES IN THE AUTUMN DAMPED ENTHUSIASM FOR BONDS BETWEEN THOSE TWO FORCES DEMAND HAS BEEN SATED SAYS CATHERINE GILLIS EDITOR OF MORNINGSTAR CLOSEDEND FUNDS A CHICAGO NEWSLETTER MAKING MATTERS WORSE WERE NUVEEN'S SURPRISE ANNOUNCEMENTS OF RIGHTS OFFERINGS IN NOVEMBER TERMS OF THOSE TWO OFFERINGS ALLOW NUVEEN TO ADD AT MOST ONE NEW SHARE FOR EVERY THREE SHARES OUTSTANDING PRICES FOR THE OFFERINGS WILL BE SET AT THE LOWER OF THE FUNDS' NET ASSET VALUE ON JAN 21 OR 95 OF THE FUNDS' AVERAGE MARKET PRICE FOR THE WEEK ENDING JAN 21 FUND WATCHERS SAY NUVEEN'S OFFERINGS ARE EVEN WORSE FOR INVESTORS THAN THEY MAY APPEAR THAT'S BECAUSE BROKERAGE HOUSES AND INVESTMENT ADVISERS WILL SKIM AS MUCH AS 3 OF THE PROCEEDS RAISED MR OLIN CALLS THE FEES TOTALLY UNNECESSARY AND COSTLY TO SHAREHOLDERS NOTING THAT SOME TOTALLY SUCCESSFUL RIGHTS OFFERINGS FOR BOND FUNDS HAVEN'T CHARGED SUCH FEES NUVEEN VICE PRESIDENT JEFF KRATZ ARGUES THAT BROKERS AND OTHER ADVISERS SHOULD BE REWARDED FOR EXPLAINING THE COMPLEXITIES OF THE OFFERINGS TO FUNDHOLDERS FAR FROM HURTING INVESTORS HE CONTENDS THE OFFERINGS ALLOW THEM TO BOOST HOLDINGS AHEAD OF AN EXPECTED RALLY IN MUNICIPAL BONDS BUT MR KRATZ ACKNOWLEDGES THAT NUVEEN HAS A FINANCIAL STAKE IN THE DEAL AFTER SWELLING THE FUNDS THE COMPANY WILL RAKE IN MORE ANNUAL MANAGEMENT FEES THE FACT THAT NUVEEN ISN'T RULING OUT MORE RIGHTS OFFERINGS HAS DEPRESSED PRICES OF MANY NUVEEN MUNICIPAL FUNDS AT TODAY'S PRICES MANY OF THOSE FUNDS ARE ATTRACTIVE ESPECIALLY BECAUSE MANY EXPERTS DO EXPECT MUNICIPALS TO DO WELL AS TAX DEADLINES APPROACH IN APRIL WHEN TAX BILLS ARE PAID THAT'S WHEN IT WILL HIT PEOPLE HOW MUCH THEY NEED TO SHELTER THEIR INCOME SAYS STUART GOLDBERG FORMER HEAD OF MUTUALFUND RESEARCH AT MERRILL LYNCH & CO BESIDES THE TAXEXEMPT FUNDS SUGGESTED BY MR HERZFELD MR OLIN FAVORS OTHER HEAVILY DISCOUNTED NUVEEN MUNICIPAL FUNDS IN ITS NUMBERED PREMIUM SERIES BECAUSE THESE FUNDS ARE LESS THAN A YEAR OLD THEY'RE UNLIKELY CANDIDATES FOR RIGHTS OFFERINGS HE SAYS HE PREFERS FUNDS WITH DISCOUNTS OF ABOUT 10 OR MORE AMONG TAXABLE BOND FUNDS MR OLIN LIKES FORT DEARBORN INCOME SECURITIES FUND A CONSERVATIVELY RUN FUND THAT TRADES AT A 52 DISCOUNT THIS TOO IS AN UNLIKELY CANDIDATE FOR A RIGHTS OFFERING BECAUSE ITS SPONSOR JUST COMPLETED ONE DEC 10 FOR THE ADVENTUROUS MR HERZFELD RECOMMENDS HYPERION 1999 TERM TRUST A TAXABLE BOND FUND THAT DIPPED DISASTROUSLY INTO RISKY MORTGAGEBACKED SECURITIES A PENDING SHAREHOLDER LAWSUIT AGAINST THE FUND HAS HAMMERED ITS IMAGE AS WELL AS ITS SHARE PRICE MR HERZFELD THINKS IT'S A BARGAIN AT TODAY'S 77 DISCOUNT GIVEN THE FACT THAT THE LEGAL PROBLEMS MEAN THE FUND SHOULD ACT MORE CONSERVATIVELY FROM NOW ON 9401070118 940107 AIR FORCE RECLAIMS LOST 360000 GIZMO FROM AUCTIONGOER A MECHANIC PAID 75 FOR IT THOUGH ONLY CIVILIAN USE IS CLOBBERING LOCAL TVS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A 360000 PIECE OF A PENTAGON SATELLITE WAS MISPLACED AND THEN BOUGHT FOR 75 AT AN AUCTION BY AN AUTOMOBILE MECHANIC IN RURAL NORTH CAROLINA ROGER SPILLMAN WHO ALSO SELLS AUTO PARTS AND DELIVERS FUEL OIL IN COOLEEMEE NC SAID AIR FORCE INVESTIGATORS WEREN'T EVEN VERY POLITE IN RETRIEVING THE PART A SHOEBOXSIZED RADIO AMPLIFIER INTENDED FOR THE MILSTAR MILITARY COMMUNICATIONS SATELLITE THEY WERE A LITTLE BIT HUFFY WHEN THEY TOOK IT FROM THE HOUSE OF A HAMRADIO OPERATOR TO WHOM HE HAD LENT THE PART MR SPILLMAN SAID IN AN INTERVIEW THE SAGA OF THE MISSING PART WAS REPORTED YESTERDAY IN THE WINSTONSALEM NC JOURNAL MR SPILLMAN SAID HE HASN'T BEEN REIMBURSED YET BY THE AIR FORCE BUT ADDED THAT HIS LAWYER WAS TOLD BY AN AIR FORCE OFFICIAL THAT IF HE HAD ATTEMPTED TO USE THE DEVICE IN HIS OWN RADIOS IT WOULD HAVE KNOCKED OUT EVERY TV FOR TWO MILES IN EVERY DIRECTION THE AIR FORCE DIDN'T HAVE AN IMMEDIATE COMMENT BUT A SPOKESMAN FOR THE DEFENSE LOGISTICS AGENCY WHICH OPERATES WAREHOUSES FOR THE AIR FORCE SAID THAT THE PAPERWORK FOR THE AMPLIFIER APPARENTLY WAS LOST BY WATKINS MOTOR LINES INC THE TRUCKING COMPANY THAT WAS SUPPOSED TO CONVEY THE PART FROM ITS MAKER RAYTHEON CO TO MCCLELLAN AIR FORCE BASE IN SACRAMENTO CALIF WATKINS THEN APPARENTLY PUT THE PIECE IN A LOSTFREIGHT COLLECTION WHICH IT EVENTUALLY TURNED OVER TO AN AUCTION HOUSE BILL PAUL A VICE PRESIDENT OF THE LAKELAND FLA TRANSPORTATION CONCERN DECLINED TO COMMENT IT ISN'T CLEAR WHY IT TOOK SEVERAL MONTHS FOR THE AIR FORCE TO RECOGNIZE THAT THE EXPENSIVE PIECE OF EQUIPMENT HADN'T BEEN DELIVERED INDEED IT APPEARS THAT THE AIR FORCE DIDN'T DETECT THE MISPLACEMENT AND INSTEAD WAS INFORMED OF THE SITUATION BY RAYTHEON AFTER MR SPILLMAN'S FRIEND REPEATEDLY CONTACTED THE COMPANY SEEKING INSTRUCTIONS ON HOW TO USE THE AMPLIFIER THE EMBARRASSING INCIDENT CAN ONLY ADD TO THE TROUBLES OF THE MULTIBILLIONDOLLAR MILSTAR PROGRAM THE AIR FORCE RUNS THE PROGRAM BUT DOESN'T PARTICULARLY LIKE CARRYING ITS COSTS AND HAS TRIED TO TRIM THE PROGRAM IN THE PAST ONLY TO BE REBUFFED BY THE JOINT CHIEFS OF STAFF A RECENT RAND CORP STUDY CRITICIZED THE PROGRAM WHICH IS BEING INVESTIGATED BY A CONGRESSIONAL COMMITTEE 9401070117 940107 TECHNOLOGY & MEDICINE COPLEY'S DRUG RECALL SENDS STOCK DOWN IN TRADING YESTERDAY CANTON MASS COPLEY PHARMACEUTICAL INC'S NATIONWIDE RECALL OF ITS ASTHMA DRUG ALBUTEROL SENT A CHILL THROUGH THE MARKET YESTERDAY IN UNUSUALLY ACTIVE OVERTHECOUNTER TRADING COPLEY SHARES WERE QUOTED AT 2950 DOWN 8 A GERMAN COMPANY HOECHST CELANESE CORP LAST YEAR ACQUIRED 51 OF THE GENERIC DRUG MANUFACTURER FOR 546 MILLION COPLEY SAID IT RECALLED ALBUTEROL SULFATE INHALATION SOLUTION 05 BECAUSE A POTENTIALLY HARMFUL BACTERIA PSEUDOMONAS FLUORESCENS WAS FOUND IN SOME MANUFACTURING UNITS THE COMPANY'S MEDICAL DIRECTOR KENNETH ZACK SAID THAT THE RECALL IS PRECAUTIONARY AND THAT NO CONSUMERS ARE KNOWN TO HAVE BEEN AFFECTED THIS IS NOT A SITUATION FOR PEOPLE TO PANIC DR ZACK SAID NONETHELESS THE MARKET WAS JITTERY ALBUTEROL IS A SIGNIFICENT COPLEY PRODUCT THE COMPANY'S SALES OF AUTONOMIC DRUGS INCLUDING ALBUTEROL ACCOUNT FOR ABOUT 14 OF ITS SALES COPLEY ESTIMATED THE RECALL WILL COST 6 MILLION OVER THE NEXT SIX MONTHS FOR THE NINE MONTHS ENDED OCT 31 COPLEY REPORTED NET INCOME OF 148 MILLION OR 80 CENTS A SHARE ON SALES OF 646 MILLION COPLEY SAID IT DISCOVERED THE CONTAMINATED UNITS THROUGH ITS OWN QUALITYCONTROL OPERATIONS COPLEY SAID IT WAS COOPERATING WITH THE FOOD AND DRUG ADMINISTRATION IN THE RECALL A SPOKESWOMAN FOR HOECHST SAID WE HAVE FULL CONFIDENCE IN COPLEY WE HAVE BOUGHT 51 OF COPLEY AND WE INTEND TO KEEP IT 9401070116 940107 ABREAST OF THE MARKET INDUSTRIALS BREAK THE 3800 BARRIER BUT ANALYSTS TAKE CAUTIOUS VIEW BY DAVE PETTIT AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE CRACKED THE 3800 LEVEL FOR THE FIRST TIME BUT THE NARROW NATURE OF THE ADVANCE LEFT ANALYSTS UNIMPRESSED STRENGTH IN THE BOND MARKET AND CONTINUED ENTHUSIASM FOR ECONOMICALLY SENSITIVE ISSUES PROPELLED THE INDUSTRIALS WHICH ROSE 506 OR 013 TO 380388 A SECOND STRAIGHT CLOSING HIGH THE AVERAGE HAD FLIRTED WITH 3800 FOR NEARLY TWO WEEKS CYCLICAL TRANSPORTATION ISSUES SURGED LIFTING THE DOW JONES TRANSPORTATION AVERAGE 2338 OR 131 TO 180221 ALSO A SECOND CONSECUTIVE RECORD IT ROSE 138 WEDNESDAY BUT ANALYSTS SAID THE RALLY THAT HAS POWERED THE DOW AVERAGES TO THESE HEIGHTS MIGHT BE LOSING STEAM MOST BROADBASED INDEXES LOST GROUND AND ADVANCERS BARELY TOPPED DECLINERS ON THE NEW YORK STOCK EXCHANGE 1076 TO 1054 VOLUME ON THE BIG BOARD MEANWHILE WAS HEAVY FOR A SECOND STRAIGHT DAY AT 3634 MILLION SHARES MORE THAN 3751 MILLION SHARES CHANGED HANDS WEDNESDAY A NEARLY FOURMONTH HIGH MODEST PRICE MOVEMENT IN THE FACE OF SUCH HEAVY ACTIVITY IS ANOTHER NEGATIVE INDICATOR ANALYSTS SAID MY GUT FEELING IS WE HAVE MOVED A LITTLE TOO FAR TOO FAST I THINK WE COULD GET A LITTLE CORRECTION SAID EDWARD COLLINS HEAD OF US EQUITY TRADING AT DAIWA SECURITIES EVEN THE STRENGTH OF THE HIGHFLYING CYCLICAL GROUP SHOWED SIGNS OF EASING ALLIEDSIGNAL ROSE 1 TO 77 1/2 GOODYEAR TIRE ADDED 1 TO 46 AND MINNESOTA MINING & MANUFACTURING CLIMBED 1 1/2 TO 107 1/4 BUT GENERAL MOTORS ADVANCED ONLY 1/4 AND DEERE 1/8 ONE REASON FOR CAUTION WAS A WEAKERTHANEXPECTED READING FROM THE LABOR DEPARTMENT SHOWING THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE SURGED 70000 LAST WEEK THE MORE IMPORTANT DECEMBER REPORT ON PAYROLLS COMES THIS MORNING THE STANDARD & POOR'S 500 STOCK INDEX LOST 043 OR 009 TO 46712 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 031 OR 012 TO 25900 AND THE DOW JONES EQUITY MARKET INDEX DROPPED 038 OR 009 TO 44219 THE NASDAQ STOCK MARKET THOUGH GAINED FOR A THIRD STRAIGHT DAY THE NASDAQ COMPOSITE INDEX WAS UP 236 OR 030 TO 78041 BUOYED BY STOCKS INCLUDING MICROSOFT WHICH ROSE 2 3/8 TO 84 5/8 MCI COMMUNICATIONS WHICH GAINED 1 3/8 TO 28 1/4 AND ADOBE SYSTEMS UP 4 TO 26 1/2 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX EXTENDED ITS WINNING STREAK TO 11 SESSIONS INCHING UP 021 OR 004 TO 47900 MANY RETAILING STOCKS HAD A ROUGH RIDE WITH CIRCUIT CITY STORES DOWN 4 1/2 OR 20 ON MARKETLEADING VOLUME OF 76 MILLION SHARES THE ELECTRONICS GOODS RETAILER SAID IT WILL BREAK FROM TRADITION AND POSSIBLY TAKE THE LEAD IN PRICECUTTING INITIATIVES IN CONSUMER ELECTRONICS RETAILING SHARES OF BEST BUY WHICH COMPETES WITH CIRCUIT CITY IN MANY REGIONS SKIDDED 7 1/2 OR 16 TO 39 3/4 TANDY CORP WHICH OPERATES RADIO SHACK STORES LOST 1 1/4 TO 46 1/8 INVESTORS ALSO WERE DISAPPOINTED BY THE GENERALLY LACKLUSTER TONE OF RETAILERS' DECEMBER SALES FIGURES RELEASED YESTERDAY SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH AMONG DECLINERS KMART SLUMPED 1 1/2 TO 19 1/2 WOOLWORTH 7/8 TO 24 7/8 JC PENNEY 1 TO 51 5/8 WALMART 7/8 TO 24 5/8 AND BARNES & NOBLE 2 TO 22 7/8 LIMITED INC THOUGH ROSE 7/8 TO 18 THE APPAREL RETAILER SAID DECEMBER SALES ROSE 8 GAP ROCKETED 3 1/8 TO 41 1/2 SALES WERE UP 14 IN THE PERIOD AT THE APPAREL STORE COMPANY COPLEY PHARMACEUTICAL PLUNGED 8 OR 213 TO 29 1/2 ON NEWS LATE WEDNESDAY THAT THE COMPANY IS VOLUNTARILY RECALLING ALL LOTS OF ITS 20MILLILITER VIALS OF ALBUTEROL SULFATE INHALATION SOLUTION COPLEY SAID THE MOVE WILL COST ABOUT 6 MILLION OVER THE CURRENT AND NEXT FISCAL QUARTER SHARES OF VALUE HEALTH JUMPED 3 1/4 OR 101 TO 35 1/2 AFTER THE COMPANY SAID FORD MOTOR AND THE UNITED AUTO WORKERS SELECTED ITS VALUERX UNIT TO ADMINISTER A NATIONWIDE RETAIL AND MAIL ORDER DRUGBENEFITS PROGRAM VALUE HEALTH SAID IT EXPECTS THE AGREEMENT TO PRODUCE 90 MILLION IN ANNUAL REVENUE TWO PROMINENT MEDIA COMPANIES ON THE BIG BOARD WERE UP SHARPLY SHARES OF WASHINGTON POST GAINED 20 3/4 OR 79 TO 282 1/4 AND CBS 4 5/8 TO 284 7/8 OFFICIALS AT WASHINGTON POST RESPONDING TO A BIG BOARD REQUEST TO EXPLAIN UNUSUAL ACTIVITY IN ITS STOCK SAID NO ANNOUNCEMENTS REGARDING COMPANY ACTIVITIES HAD BEEN MADE OR WERE PLANNED LIKEWISE THERE WAS NO NEWS TO EXPLAIN THE JUMP IN CBS GERRITY OIL & GAS SHED 1 1/2 TO 10 5/8 AFTER IT SAID IT IS NO LONGER SEEKING POTENTIAL BUYERS FOR THE COMPANY GERRITY SAID IT ADOPTED A BUSINESS PLAN UNDER WHICH IT WILL EXPAND INTO NEW MARKETS ON A SELECTED BASIS PS GROUP WAS OFF 1 3/4 OR 12 AT 13 LATE WEDNESDAY THE COMPANY SAID IT HAD DISCONTINUED TALKS WITH A GROUP CONTROLLED BY THE PRITZKER FAMILY REGARDING THE SALE OF PS GROUP'S TRAVEL MANAGEMENT UNIT SHARES OF GENSIA SLIPPED 2 TO 23 1/8 AFTER THE COMPANY LATE WEDNESDAY SAID IT WAS NOTIFIED BY REGULATORY AUTHORITIES THAT SUCCESSFUL RESULTS FROM ITS ONGOING STUDY WITH PROTARA USED IN CORONARY SURGERY WILL BE REQUIRED PRIOR TO POTENTIAL APPROVAL TO MARKET THE DRUG SHANGHAI PETROCHEMICAL DROPPED 3 1/8 TO 39 5/8 THE COMPANY SAID IT INCREASED ITS INVESTMENTS IN TWO ASSOCIATED COMPANIES INVOLVED IN TRADING AND INVESTMENTS AND FORMED A NEW COMPANY THAT WILL OWN GAS STATIONS AND TRADE IN PETROCHEMICAL PRODUCTS BRUNSWICK JUMPED 1 3/8 TO 20 ON HEAVY VOLUME ANALYSTS ATTRIBUTED THE ACTION IN PART TO INCREASING CONSUMER CONFIDENCE AND TO INTEREST SPURRED BY THE FORTHCOMING NEW YORK BOAT SHOW 9401070115 940107 HEARD ON THE STREET CUC INTERNATIONAL DRAWS RAVES ON WALL STREET ALTHOUGH SOME SKEPTICS SAY IT'S RIPE FOR A FALL BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL DIM THE LIGHTS PUT FRESH FLOWERS ON THE TABLE AND SUMMON THE STROLLING VIOLINIST WALL STREET JUST LOVES CUC INTERNATIONAL ACCORDING TO ZACKS INVESTMENT RESEARCH 10 OF THE 11 WALL STREET FIRMS THAT FOLLOW CUC RATE IT AS A BUY THE STOCK ROSE 41 IN 1992 AND 86 IN 1993 IT IS AMONG THE 10 MOST EXPENSIVE STOCKS ON THE NEW YORK STOCK EXCHANGE ACCORDING TO A RECENT TALLY BY KIDDER PEABODY SKEPTICS CONCEDE THAT CUC IS A GOOD COMPANY BUT THEY ARGUE THAT THE SHARES ARE DUE FOR A FALL IT'S TIME TO TAKE SOME MONEY OUT SAYS ANALYST JOHN B FRANCK AT PNC FINANCIAL IN PHILADELPHIA LONE BEAR AMONG THE 11 ANALYSTS WHY BE GREEDY AT YESTERDAY'S PRICE OF 34 1/2 DOWN 1 CUC SHARES SELL FOR A TOWERING 48 TIMES THE PAST FOUR QUARTERS' EARNINGS THAT'S THE KIND OF GIDDY MULTIPLE INVESTORS ATTACH TO COMPANIES WHEN WALL STREET VIEWS THEM THROUGH A ROMANTIC HAZE WALMART STORES HOME DEPOT AND US SURGICAL CARRIED SUCH MULTIPLES A YEAR OR TWO AGO THOSE STOCKS HAVE STUMBLED NOT BECAUSE THEY WERE BAD COMPANIES BUT BECAUSE REDHOT EARNINGS GROWTH IS HARD TO SUSTAIN CUC BASED IN STAMFORD CONN OPERATES VARIOUS DISCOUNTBUYING SERVICES CONSUMERS PAY AN ANNUAL FEE SUCH AS 50 A YEAR TO GET DISCOUNTS ON SHOPPING TRAVEL RESTAURANT DINING OR OTHER ITEMS THE DISCOUNT PROGRAMS ARE SOLD MAINLY THROUGH CREDITCARD ISSUERS SUCH AS BANKS WHICH OFTEN PUT THEIR OWN NAMES ON THEM THE STOCK'S SIZZLE STEMS FROM CUC'S PROSPECTS AS A FIRSTCLASS TRAVELER ON THE INFORMATION SUPERHIGHWAY INVESTORS SEE THE TELEVISION TELEPHONE AND COMPUTER BLENDING INTO ONE HIGHPOWERED DEVICE THEY FIGURE THE COMPANIES THAT CAN PROVIDE CONTENT FOR IT WILL THRIVE CUC IS ONE SUCH COMPANY IT ALREADY SELLS ITS SERVICES THROUGH SEVERAL COMPUTER NETWORKS SUCH AS COMPUSERVE AND AMERICA ONLINE AND IT HAS SIGNED AGREEMENTS TO PROVIDE CONTENT FOR INTERACTIVE TELEVISION PILOT PROGRAMS IN ORLANDO FLA WITH TIME WARNER AND CASTRO VALLEY CALIF WITH A JOINT VENTURE OF AMERICAN TELEPHONE & TELEGRAPH AND VIACOM THE WHOLE INTERACTIVEMEDIA AREA HAS TREMENDOUS POTENTIAL FOR THE 1990S SAYS RAY HIRSCH A MONEY MANAGER AT IDS IN MINNEAPOLIS WHICH OWNS THE STOCK HE CAUTIONS HOWEVER THAT IT'S IMPOSSIBLE TO TELL WHICH COMPANIES WILL BE THE WINNERS AND LOSERS OVER THE NEXT COUPLE OF YEARS SO INVESTORS WHO WANT TO CRUISE THE INFORMATION HIGHWAY SHOULD BUY A CARAVAN OF SEVERAL STOCKS CONSUMERS TODAY ARE VERY COSTCONSCIOUS AND CUC FITS RIGHT INTO THAT THEME FOR THE 1990S SAYS CHARLES W HOOPER OF FOUNDERS SPECIAL FUND IN DENVER MR HOOPER'S FUND OWNS 125000 CUC SHARES HE SOLD 75000 LAST FALL BECAUSE I THOUGHT IT WAS EXPENSIVE BUT PLANS TO HANG ON TO THE REST HE LIKES CUC'S EXPOSURE TO INTERACTIVE TELEVISION AND IS ENTHUSIASTIC ABOUT ITS PLANS TO EXPAND IN EUROPE NAOMI TALISH AN ANALYST AT MORGAN STANLEY IS A MAJOR PROPONENT OF THE STOCK CUC CONTINUES TO ADD NEW MEMBERS SHE SAYS IT ALREADY HAS SOME 28 MILLION ALTHOUGH PEOPLE ARE DOUBLECOUNTED IF THEY BELONG TO SAY A TRAVEL CLUB AND A DISCOUNTDINING SERVICE AND MS TALISH THINKS IT WILL ADD ABOUT 25 MILLION THIS YEAR AT THE SAME TIME SHE SAYS CUC HAS LOWERED THE COST OF ACQUIRING MEMBERS ALLOWING IT TO BOOK A SLIGHT PROFIT IN THE FIRST YEAR MS TALISH ESTIMATES THAT CUC WILL EARN 76 CENTS A SHARE IN THE CURRENT FISCAL YEAR THAT ENDS JAN 31 THEN 98 CENTS A SHARE NEXT YEAR AND 127 IN THE YEAR ENDING IN JANUARY 1996 MY FIVEYEAR PROJECTED GROWTH RATE IS 30 SHE SAYS I THINK THE GROWTH IS VERY PREDICTABLE AND THAT DOESN'T INCLUDE IMPACT FROM THE INTERACTIVE SIDE SHE THINKS THE SHARES COULD HIT 45 BY MID1995 BUT MR FRANCK OF PNC WONDERS WHETHER INVESTORS ARE WISE TO ASSUME THAT ANY COMPANY'S EARNINGS CAN GROW 30 A YEAR CONSISTENTLY IN INTERACTIVE COMMUNICATIONS HE SAYS A MYRIAD OF THINGS WILL COME INTO THE MARKETPLACE NOBODY KNOWS WHAT WILL CATCH ON TO LOOK AT CUC'S STOCK PRICE SAYS MR FRANCK YOU WOULD THINK THAT PEOPLE ARE GOING TO DO ALL THEIR SHOPPING BY PUNCHING BUTTONS AT HOME IF THIS IS REALLY THE WAVE OF THE FUTURE CAN YOU IMAGINE THE VACANT RETAIL SPACE ALL THE MALLS SHORT SELLERS INVESTORS WHO BET THAT A PARTICULAR STOCK WILL DECLINE HAVE LOST A LOT OF MONEY IN CUC ROBERT L RENCK HEAD OF A SMALL BROKERAGE AND MONEYMANAGEMENT FIRM SAYS HE URGED SHORT SALES A YEAR OR TWO AGO BUT ISN'T DOING SO NOW MY GRANDDADDY SAID NEVER STAND IN FRONT OF A FREIGHT TRAIN HE SAYS STILL MR RENCK SAYS HE WOULD RATHER SELL CUC SHARES THAN BUY THEM IT REMAINS TO BE SEEN WHETHER THEY HAVE A PROPRIETARY POSITION IN ELECTRONIC SHOPPING HE SAYS THE STOCK'S VALUATION IS EXCESSIVE IT'S ALWAYS BEEN HIGH BUT NOW IT'S EXTREMELY HIGH 9401070114 940107 QUARTERLY MUTUAL FUNDS REVIEW RISKS HAVE THEIR REWARDS AS AREAS FRAUGHT WITH DANGER POST GAINS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RISKY BETS NABBED THE NO 1 SPOTS IN THE LATEST MUTUALFUND PERFORMANCE WARS LEADING THE PACK FOR THE QUARTER YEAR AND LONGER PERIODS WERE FOUR AREAS FRAUGHT WITH TREACHERY GOLD BIOTECHNOLOGY SMALL COMPANIES AND SOUTHEAST ASIAN STOCKS THESE FUNDS LOOK GREAT NOW IN THE PERFORMANCE CHARTS BUT MANY HAVE HAD WILD UPS AND DOWNS IN THE PAST AND PROBABLY WILL HAVE MORE THE BESTPERFORMING FUND FOR THE YEAR LEXINGTON STRATEGIC INVESTMENTS PUTS ITS MONEY IN SMALLER SOUTH AFRICAN MINING COMPANIES THE RISE IN GOLD PRICES CATAPULTED THE FUND OUT OF ITS POSITION AS ONE OF THE WORSTPERFORMING FUNDS FOR THE PAST 10 YEARS FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO RACKED UP THE BEST FIVEYEAR PERFORMANCE DESPITE SOME MAJOR CORPORATE DISASTERS IN THE INDUSTRY IN THE PAST TWO YEARS IN THE FOURTH QUARTER THE BEST PERFORMER WAS MORGAN STANLEY INSTITUTIONAL FUNDASIAN EQUITY PORTFOLIO WHICH IS HEAVILY INVESTED IN MALAYSIA THAILAND AND HONG KONG TWENTIETH CENTURY GIFTRUST INVESTORS IS CELEBRATING ITS RECENT 10YEAR ANNIVERSARY BY BEING THE LEADING FUND IN THAT TIME PERIOD THE FUND INVESTS IN SMALL COMPANIES THAT ARE GROWING QUICKLY WE ARE BUYING HOT ACCELERATING COMPANIES WITH GREAT EARNINGS GROWTH SAYS JAMES E STOWERS III WHO HEADS THE TEAM THAT MANAGES THE KANSAS CITY MOBASED GIFTRUST FUND LAUNCHED IN NOVEMBER 1983 THE FUND FAVORS SHARES OF SMALL YOUNG COMPANIES THAT HAVE EXCITING PROSPECTS THE 50 OR SO STOCKS IN THE FUND HAVE AN AVERAGE MARKET VALUE OF 250 MILLION AND THE FUND'S SMALL SIZE 164 MILLION IN TOTAL ASSETS PERFECTLY SUITS THIS STYLE OF INVESTING ANALYSTS SAY THE HOT MARKET FOR INITIAL PUBLIC OFFERINGS IN 1993 PROVIDED A SLEW OF ADDITIONAL SMALL STOCKS WITH FASTGROWTH PROSPECTS THE IPOS AND OTHER STOCK OFFERINGS HELPED TO GIVE AN EXTRA BOOST TO THE FUND WHICH HAD A TOTAL RETURN PRICE CHANGE PLUS DIVIDENDS OF 314 IN 1993 THE FUND IS SMALL ENOUGH THAT WE ARE ABLE TO BUY INTO THOSE DEALS THAT GIVE SOME PERK TO THE FUND MR STOWERS SAYS AMONG THE HOT IPOS BOUGHT BY THE FUND ARE MICROCHIP TECHNOLOGY INC AND GENERAL NUTRITION INC WHEN INVESTING IN SUCH SMALL STOCKS MR STOWERS SAYS IT'S IMPORTANT TO BE ABLE TO REACT QUICKLY THE FUND HAS A RELATIVELY HIGH ANNUAL AVERAGE TURNOVER RATE OF 140 IN THE PAST FIVE YEARS WE DON'T TURN OVER THE WHOLE FUND EVERY YEAR BUT WE HAVE TO MOVE QUICKLY HE SAYS IN THE SMALLCAP AREA YOU OFTEN SEE A SHOOTING STAR THAT FLAMES OUT REALLY FAST IF WE SEE THAT HAPPENING WE'RE HEADED FOR THE DOOR VERY QUICKLY AS OF OCT 31 THE FUND WAS WEIGHTED 11 IN COMPUTER SOFTWARE 8 IN COMMUNICATIONS SERVICES 12 IN SEMICONDUCTOR AND RELATED ELECTRONIC COMPONENTS AND 11 IN RETAIL STOCKS MR STOWERS SAYS THERE ARE FIVE PORTFOLIO MANAGERS PICKING STOCKS FOR THE FUND BY TRACKING SOME 10000 TO 12000 COMPANIES EVERY QUARTER THE STOCKPICKERS ARE LOOKING FOR COMPANIES WITH TOP AND BOTTOMLINE THAT MEANS REVENUE AND EARNINGS GROWTH HE SAYS THEY DON'T WANT TO OWN COMPANIES THAT ARE JUST INCREASING EARNINGS BY CUTTING EXPENSES WE'RE CAREFUL NOT TO OWN THE KIND OF NAMES THAT GET GLORIFIED OR HAVE THE FEELING OF WALKING ON WATER HE SAYS BUT THIS FUND IS NOT FOR THE GREEDY INDIVIDUALS CAN'T INVEST IN THE GIFTRUST PORTFOLIO FOR THEMSELVES SHARES OF THE FUND MUST BE GIVEN AS A GIFT TO ANOTHER INDIVIDUAL OR ORGANIZATION AND MUST BE HELD EITHER FOR A 10YEAR PERIOD OR FOR THE TIME IT TAKES A MINOR TO REACH ADULTHOOD THESE RESTRICTIONS HELP TO KEEP THE FUND SMALL AND AGILE IT'S A NOLOAD FUND WITH AN ANNUAL MANAGEMENT FEE OF 1 FIDELITY SELECT BIOTECHNOLOGY PORTFOLIO MANAGED TO BE THE BEST PERFORMER FOR THE PAST FIVE YEARS EVEN THOUGH MANY OF THE STOCKS IT OWNS ARE UNLOVED TODAY THE FUND IN 1993 HAD ONLY A GAIN OF 07 THAT FOLLOWED A 1992 LOSS OF 1038 ONLY AFTER 1991'S LEAP OF 9951 GETS FACTORED INTO THE FIVEYEAR PERFORMANCE DOES THE FUND RISE TO THE TOP DURING THAT PERIOD WOW I CAN'T BELIEVE WE'RE ON THE LIST SAYS KAREN FIRESTONE THE PORTFOLIO MANAGER THE GROUP WAS ABYSMAL IN 1992 AND IT STARTED OUT REALLY BAD IN 1993 THE STOCKS SHOWED SIGNS OF LIFE LATE IN THE YEAR BUT THE BIOTECHNOLOGY GROUP OF THE DOW JONES EQUITY MARKET INDEX WOUND UP DOWN 752 IN 1993 IN THE FIRST QUARTER OF 1993 BIOTECHNOLOGY STOCKS HIT BOTTOM AND DIDN'T START TO LOOK BETTER UNTIL THE SECOND HALF AND MUCH OF THE GAINS HAVE COME IN ONLY A FEW INDIVIDUAL STOCKS MS FIRESTONE SAYS ONE OF THE FUND'S BIGGEST HOLDINGS CHIRON CORP AT 84 IS TRADING AT MORE THAN DOUBLE ITS 52WEEK LOW OF 40 THE STOCK HAS BEEN RISING ON THE BELIEF THAT EARNINGS WILL BENEFIT FROM SALES OF BETASERON ITS NEW DRUG FOR MULTIPLE SCLEROSIS ANOTHER BIG HOLDING GENENTECH INC AT 4925 IS UP MORE THAN 57 FROM ITS 52WEEK LOW GENENTECH HAS AN IMPRESSIVE PIPELINE OF NEW PRODUCTS THE BACKING OF GIANT ROCHE HOLDING OF SWITZERLAND AND THE POSSIBILITY OF A TAKEOVER BY ROCHE THE FOOD AND DRUG ADMINISTRATION RECENTLY APPROVED GENENTECH'S DNASE TREATMENT FOR CYSTIC FIBROSIS TO BE MARKETED UNDER THE BRAND NAME PULMOZYME OWNING SOME STOCKS WITH GIANT GAINS IS ONLY PART OF THE STORY THE FUND WAS HELPED GREATLY BY NOT OWNING SEVERAL STOCKS THAT DIVED THE FUND DIDN'T OWN MEDIMMUNE INC WHICH IS NOW TRADING AT 12 LESS THAN HALF OF ITS 52WEEK HIGH OF 32625 WE CAN SAY WE DODGED SOME DISASTERS BUT THE FUND ISN'T UP 20 SHE SAYS NOT EVERY BUST WAS AVOIDED IF I COULD DO SOMETHING OVER AGAIN IN 1993 IT WOULD BE SYNERGEN MS FIRESTONE SAYS THE DATA WERE SO ENCOURAGING I WAS SEDUCED INTO BELIEVING IN ONE DAY SYNERGEN INC PLUNGED 68 WHEN IT ANNOUNCED DISAPPOINTING RESULTS OF ITS DRUG ANTRIL FOR SEPSIS A BLOOD INFECTION THE STOCK CLOSED AT 1325 YESTERDAY COMPARED WITH A YEARLY HIGH IN THE MID60S MS FIRESTONE BELIEVES THE GROUP WILL START DRAWING A LOT OF ATTENTION IN 1994 AS MANY MORE PRODUCTS GO THROUGH LATESTAGE CLINICAL TRIALS AND START SHOWING STRONG RESULTS ASCENDING TO BEST FROM WORST LEXINGTON STRATEGIC INVESTMENTS POSTED A GAIN OF 26978 FOR 1993 JUST 12 MONTHS AGO THE FUND WAS LISTED AS THE WORSTPERFORMING FUND OF 1992 WITH A LOSS OF 6071 YOU WIN SOME YOU LOSE SOME SAYS CAESAR BRYAN WHO BEGAN MANAGING THE FUND AT THE BEGINNING OF 1992 IT WAS JUST HORRIBLE IN 1992 IT'S WHAT HAPPENS TOMORROW THAT COUNTS MR BRYAN IS STICKING WITH GOLD WHEN HE TOOK CHARGE HE DECIDED TO CONCENTRATE THE FUND'S HOLDINGS WHICH NOW COMPRISE 26 STOCKS IN SMALL SOUTH AFRICAN GOLDMINING COMPANIES IN 1993 MANY OF THOSE COMPANIES MANAGED TO BOUNCE BACK FROM TOUGH TIMES AND THEIR STOCK PRICES SOARED GOLD PRICES GOT AS HIGH AS AROUND 415 AN OUNCE DURING THE SUMMER AFTER STARTING THE YEAR AT 330 AN OUNCE GOLD PRICES ARE NOW AROUND 390 MR BRYAN BELIEVES THE BULL MARKET FOR GOLD STILL HAS A WAYS TO GO GOLD HAS BEEN IN A BEAR MARKET FOR THE LAST 13 YEARS AND IT IS JUST OFF THE BOTTOM HE SAYS THERE IS CONTINUED STRONG DEMAND FOR GOLD FROM THE FAR EAST AND SOUTHEAST ASIA SAYS MR BRYAN SOME INVESTORS ARE BUYING GOLD AS A HEDGE AGAINST THE CHANCE OF INCREASING INFLATION IN THEIR GROWING ECONOMIES GOLD IS A LITTLE LIKE CARS OR MINK COATS HE ADDS WHERE WEALTH IS BEING CREATED THERE IS A GREATER DEMAND FOR GOLD ONE OF THE BIGGEST SUCCESS STORIES IN THE FUND IS WESTERN AREAS GOLD MINING NOW TRADING AROUND 850 MORE THAN 11 TIMES ABOVE THE BEGINNING OF 1993 SOME OF THE FUND'S OTHER BIG WINNING POSITIONS ARE KINROSS MINES AND RANDFONTEIN ESTATES GOLD MINING AN EASING OF THE SOUTH AFRICAN POLITICAL SITUATION ALSO HELPED TO BOOST THE FUND A YEAR AGO MR BRYAN TOOK A TRIP TO SOUTH AFRICA TO MAKE THE DECISION TO STAY IN THESE STOCKS MANY OF WHICH NEED TO CUT COSTS AND FIND NEW ORE AFTER WAITING OUT THE WORST MR BRYAN SAYS HE IS STAYING WHERE I AM RIGHT NOW IN GOLD STOCKS THE FUND IS SLATED AS A NATURAL RESOURCES FUND AND COULD MOVE INTO OTHER AREAS SUCH AS BASE METALS SOMETHING HE IS STARTING TO STUDY LEXINGTON MANAGEMENT CORP TOOK OVER THE MANAGEMENT OF LEXINGTON STRATEGIC INVESTMENTS IN 1992 THE FUND CARRIES A CHARGE OR LOAD OF AS MUCH AS 575 THE FUND'S OPERATING EXPENSES WERE A HIGH 408 OF THE FUND'S ASSETS AT THE END OF 1992 WHEN THE FUND HELD 86 MILLION BUT EXPENSES AS A PERCENTAGE OF ASSETS SHOULD DECLINE WITH THE RAPID GROWTH OF THE FUND SINCE THEN WHICH HAS JUMPED TO 81 MILLION MORGAN STANLEY INSTITUTIONAL FUNDASIAN EQUITY PORTFOLIO HAS HAD A DAZZLING PERFORMANCE SINCE ITS INCEPTION THREE YEARS AGO THE SINGAPOREBASED FUND HAD A FOURTHQUARTER GAIN OF 4956 A SHINING ENDING TO A YEAR THAT BROUGHT A 1057 LEAP THIS ISN'T A FUND FOR EVERYONE IT'S ONLY FOR WEALTHY INVESTORS WHO CAN PUT UP THE 500000 MINIMUM INITIAL PURCHASE THE FUND INVESTS HEAVILY IN HONG KONG MALAYSIA SINGAPORE AND THAILAND IT ALSO HAS STOCKS FROM CHINA INDONESIA THE PHILIPPINES AND TAIWAN EAN WAH CHIN PORTFOLIO MANAGER SAYS THE ASIAN MARKETS SHOULD DO REASONABLY WELL IN THIS YEAR'S FIRST HALF BUT NOT AS SPECTACULARLY AS THEY HAVE BEEN THESE MARKETS HAVE GOTTEN VERY SPECULATIVE THERE'S NO ARGUMENT ABOUT IT SHE SAYS NOW SMALL LOCAL INVESTORS ARE STARTING TO SNATCH UP SHARES SHE SAYS ASIANS ARE STARTING TO BENEFIT FROM THE REGION'S GROWING ECONOMIES AND HAVE SOME MONEY TO INVEST LOCAL GOVERNMENTS ARE PROMOTING THE USE OF THE STOCK MARKET THESE FACTORS ADDED TO THE MONEY POURING INTO THE MARKETS FROM THE US AND JAPAN ARE PUSHING STOCK PRICES EVEN HIGHER THE FUND HAS ONLY ABOUT 283 MILLION IN TOTAL ASSETS WHICH IS SPREAD OUT AMONG 160 STOCKS THE PORTFOLIO MANAGER SAYS THE FUND HOLDS ONLY A SMALL PORTION OF EACH COMPANY BECAUSE SUCH STOCKS CAN BE DIFFICULT TO TRADE SOME OF THE LARGER HOLDINGS INCLUDE HUTCHISON WHAMPOA A HONG KONG CONGLOMERATE IN THE TRANSPORTATION AND TELECOMMUNICATIONS INDUSTRIES AND BANGKOK BANK IN THAILAND THE STOCKPICKING TEAM'S MEMBERS ARE ALL FROM THE AREA WHERE THE FUND CHOOSES ITS STOCKS WE OPERATE FROM ASIA OUR WHOLE LIFE IS ASIA OUR FUTURE IS ASIA THE FUND MANAGER SAYS WE KNOW HOW TO GET THE RIGHT COMPANY BOOKS NOT THE ONES THEY SHOW THE TAX COLLECTORS 9401070113 940107 LETTERS TO THE EDITOR DON'T BE FLIPPANT ABOUT OUR CAREERS YOUR OTHERWISE EXCELLENT DEC 16 PAGEONE EXPOSE ON FEDERAL JOBS PROGRAMS RECYCLED AN ELITIST CLICHE ABOUT JOBS IN THE FASTFOOD INDUSTRY WHY SHOULD OUR JOBS BE PASSED OFF AS MERELY FLIPPING HAMBURGERS WHEN IN REALITY OURS IS AN INDUSTRY FILLED WITH OPPORTUNITY FOR HARD WORKERS HOW ELSE CAN YOU EXPLAIN THE HUNDREDS OF THOUSANDS OF SUPERVISORS MANAGERS AND ASSISTANT MANAGERS EARNING SOLID SALARIES IN AN INDUSTRY THAT BOASTS 250000 CHAIN RESTAURANT OUTLETS MOST OF THESE DETERMINED MEN AND WOMEN GOT THEIR START PREPARING FOOD LEARNING TEAMWORK AND ALL THE OTHER CHALLENGING SKILLS THAT ENABLE CHAIN RESTAURANTS TO SERVE MILLIONS OF CUSTOMERS DAILY FLIPPING HAMBURGERS DOESN'T ACCURATELY DESCRIBE OUR BUSINESS ANY MORE THAN FLIPPING NEWSPAPERS ONTO DOORSTEPS DESCRIBES JOBS IN JOURNALISM 9401070112 940107 THE AMERICAS THE US SHOULD PUNISH FIDEL BY GRANTING HIS WISH BY DAVID ASMAN AFTER FIVE MONTHS OF PHONE CALLS LETTER WRITING AND SCHMOOZING AT EMBASSY RECEPTIONS I FINALLY GOT THE CALL MY CUBAN VISA HAD ARRIVED FROM HAVANA HOWEVER LESS THAN 24 HOURS BEFORE I WAS TO LEAVE I WAS TOLD THE VISA HAD BEEN REVOKED DUE TO INCORRECT POLITICAL STATEMENTS MADE BY ME AT A COUNCIL ON FOREIGN RELATIONS MEETING SEVERAL DAYS BEFORE THE STORY OF MY FAILED ATTEMPTS TO GET INTO CUBA REVEALS MORE THAN THE EXTRAORDINARY DIFFICULTIES INVOLVED IN DEALING WITH THE FICKLE CUBAN BUREAUCRACY IT SUGGESTS THAT THE US ECONOMIC EMBARGO OF CUBA IS NOT THE OVERRIDING CONCERN OF THE CUBAN LEADERSHIP AT THE MOMENT AS THE READERS OF THESE PAGES ARE LIKELY AWARE THE JOURNAL EDITORIAL POLICY HAS HARDLY BEEN SYMPATHETIC TO FIDEL CASTRO'S CALLS FOR LIFTING THE EMBARGO IN FACT THE EMBARGO SEEMED JUSTIFIABLE AS LONG AS MR CASTRO ACTED AS THE FUNDING MECHANISM FOR POLITICAL SUBVERSION AROUND THE WORLD AND AS LONG AS THE CUBAN ECONOMY WAS CLEARLY UNDER HIS CONTROL HOWEVER LAST YEAR THERE OCCURRED IN CUBA SOME REMARKABLE ECONOMIC TRANSFORMATIONS THAT HAVE FORCED MANY TO RETHINK THE EMBARGO WHEN CUBA LOST ITS AID FROM THE OLD SOVIET BLOC THE CUBAN ECONOMY WENT INTO A NOSEDIVE THIS WAS NOT UNEXPECTED SINCE THE SOVIETS AND THEIR SATELLITES WERE SUBSIDIZING APPROXIMATELY 25 OF CUBA'S GROSS NATIONAL PRODUCT AND PROVIDING ALMOST ALL OF CUBA'S HARDCURRENCY EARNINGS THROUGH FAVORABLE TRADE DEALINGS THE INABILITY OF THE CUBAN ECONOMIC MODEL SUCH AS IT WAS TO SUSTAIN ITSELF WAS CLEAR TO ANY ANALYST EXCEPT FIDEL AND THE SYCOPHANTS WITH WHOM HE SURROUNDS HIMSELF BUT DESPERATE SITUATIONS CALL FOR DESPERATE MEASURES AND LAST SUMMER THE CLOSED DOOR OF THE CUBAN ECONOMY BEGAN TO CRACK OPEN THE FIRST AND MOST DRAMATIC MEASURE WAS THE DECISION LAST JULY TO ALLOW MOST CUBAN CITIZENS TO HOLD AND TRADE US DOLLARS THE SIGNIFICANCE OF ALLOWING CUBANS TO LEGALLY TRADE IN DOLLARS IS THAT THE CUBAN GOVERNMENT IS NO LONGER THE SOLE EMPLOYER OR INSTIGATOR OF ECONOMIC ACTIVITY CUBANS WHO GET DOLLARS FROM TIPS RELATIVES ABROAD OR BARTER CAN NOW PAY OTHER CUBANS FOR GOODS AND SERVICES IN A CURRENCY OUTSIDE THE GOVERNMENT'S CONTROL WHILE MUCH OF THIS ECONOMIC ACTIVITY IS STILL UNDERGROUND THE DOLLAR PROFITS ACCRUED CAN BE OPENLY SPENT AND EVEN PLACED IN DOLLAR SAVINGS ACCOUNTS AT ABOUT THE SAME TIME THE DOLLAR WAS LEGALIZED MORE THAN 100 PRIVATE OCCUPATIONS WERE LEGALIZED INCLUDING SHOEMAKERS TAXI DRIVERS REPAIRMEN AND CERTAIN FARMERS MANY OF THE RESTRICTIONS PLACED ON THE CUBAN BUSINESS SECTOR REMAIN ONEROUS UNIVERSITY GRADUATES ARE PROHIBITED FROM OPERATING BUSINESSES THE GOVERNMENT RESERVES THE RIGHT TO SUSPEND ANY BUSINESS ARBITRARILY ETC AND CUBAN CITIZENS ARE STILL DENIED MANY ECONOMIC RIGHTS OF OWNERSHIP NOW ENJOYED BY FOREIGNERS HOWEVER DESPITE THE RESTRICTIONS THE LEGENDARY CUBAN ENTREPRENEURIAL SPIRIT HAS KICKED IN AND SPREAD LIKE WILDFIRE ACCORDING TO HARVARDBASED CUBAN EXPERT JORGE DOMINGUEZ BY THE END OF THE YEAR ENTREPRENEURS WERE REGISTERING NEW BUSINESSES AT THE ASTOUNDING RATE OF 800 A DAY AND THAT COUNT MERELY RECORDS THOSE WHO BOTHERED TO REGISTER PERHAPS NOTHING BETTER SHOWS THE POWER OF CUBA'S ENTREPRENEURS THAN THE VEHEMENCE WITH WHICH COMMUNIST HARDLINERS ARE FIGHTING AGAINST THEM LAST WEEK COMMUNIST LEGISLATORS SUCCEEDED IN OUTLAWING SEVERAL ENTERPRISES RECENTLY LEGALIZED IN THE PAST WHEN CASTRO FELT THAT MARKET FORCES WERE GETTING OUT OF CONTROL HE RELIED ON THE UNSWERVING SUPPORT OF HIS INTERNAL SECURITY APPARATUS TO CLOSE DOWN ENTERPRISES SOVIET FUNDS WERE ALSO AVAILABLE TO BLUNT THE EFFECTS BUT SUPPORT FROM THE MILITARY FOR SUCH A CRACKDOWN IS NO LONGER A GIVEN AND OF COURSE THERE IS NO LONGER ANY SOVIET CASH TO MAKE UP FOR LOST MARKETS THIS TIME IT'S UNLIKELY THAT CASTRO CAN PREVENT THE SPREAD OF THE MARKET FORCES THAT HAVE BEEN UNLEASHED IN LIGHT OF ALL THESE CHANGES JOURNAL EDITORIALISTS BEGAN TO FEEL THAT IF INDIVIDUAL CUBANS HAD THE OPPORTUNITY TO RECEIVE FINANCING FROM ABROAD AND TO TRADE WITH THE US A CRITICAL MASS MIGHT DEVELOP THAT WOULD HASTEN THE TRANSITION TO A MORE OPEN ECONOMIC AND POLITICAL SYSTEM UNDER CURRENT CONDITIONS IT BEGAN TO LOOK LIKE THE ECONOMIC EMBARGO HAD OUTLIVED ITS USEFULNESS I MADE MY FEELINGS ABOUT THE EMBARGO KNOWN TO CUBAN REPRESENTATIVES IN THE US AND THEY APPEARED TO BE ENTHUSIASTIC ABOUT MY VISIT UNTIL I SPOKE AT THE COUNCIL ON FOREIGN RELATIONS A CUBAN REPRESENTATIVE TO THE UNITED NATIONS WAS AT THE COUNCIL MEETING AND DUTIFULLY REPORTED MY REMARKS BACK TO HAVANA WHEREUPON MY VISA WAS REVOKED WHILE I NOTED IN MY TALK THE DESPERATE ECONOMIC CIRCUMSTANCES ON THE ISLAND I SAID NOTHING NOT ALREADY WRITTEN IN DETAIL ON MY VISA APPLICATIONS SINCE THE MEETING WAS SUPPOSED TO BE OFFTHERECORD COUNCIL REPRESENTATIVES THREATENED TO BAR CUBANS FROM FUTURE MEETINGS IF MY VISA WAS NOT REISSUED BUT DESPITE THE RISK OF LOSING THE INFORMAL CONTACTS MADE AT THE COUNCIL WITH US DIPLOMATS AND BUSINESS INTERESTS THE CUBANS WERE UNMOVED MORE RECENTLY SEVERAL OTHER JOURNALISTS AND SCHOLARS WHO FAVORED A NEW LOOK AT THE ECONOMIC EMBARGO HAD THEIR VISA REQUESTS EITHER DENIED OR REVOKED IF FIDEL REALLY OPPOSES THE EMBARGO WHY IS HE NOW PREVENTING THE VISITS OF THOSE WHO FAVOR LIFTING IT PARTICULARLY OF THOSE WHO FORMERLY SUPPORTED IT COULD IT BE BECAUSE THE EMBARGO REMAINS THE ONLY EXCUSE HE HAS TO DEFLECT ATTENTION FROM HIS GOVERNMENT'S FAILURE TO END THE ECONOMIC CRISIS WHILE ENDING THE ECONOMIC EMBARGO OF CUBA MAY INDEED ACCELERATE THE MOMENT OF RECKONING FOR THE CUBAN LEADERSHIP THERE ARE MEASURES SHORT OF SUCH A DRAMATIC UNILATERAL ACTION THAT THE CLINTON ADMINISTRATION COULD TAKE TO AFFECT CHANGE IN CUBA PRESIDENT CLINTON SHOULD THROW DOWN THE GAUNTLET AND OFFER TO LIFT THE EMBARGO WITH JUST ONE ECONOMIC CONDITION GRANT THE CUBAN PEOPLE THE SAME ECONOMIC RIGHTS THE CUBAN GOVERNMENT NOW AFFORDS FOREIGNERS NAMELY THE RIGHT TO PRIVATE PROPERTY AND THE PROPER EXECUTION OF CONTRACT RIGHTS AND REASONABLE RETURNS ON INVESTMENT THEN INDIVIDUAL CUBANS COULD TRADE DIRECTLY WITH THE US WITH A MINIMUM OF INTERFERENCE OR CONTACT WITH THE CUBAN GOVERNMENT AS FOR POLITICAL RECOGNITION AND THE OPENING OF INTERNATIONAL PIGGY BANKS FOR DEVELOPMENT LET SUCH POLITICAL REWARDS ACCRUE ONLY AS THE POLITICAL REALITIES CHANGE ON THE ISLAND PERHAPS IN PREPARATION FOR JUST SUCH A CHALLENGE THE CUBAN FOREIGN MINISTER RECENTLY SAID THAT THE GOVERNMENT WILL ACCEPT ONLY UNCONDITIONAL WITHDRAWAL OF THE EMBARGO BUT FOR HOW LONG COULD THE CUBAN LEADERSHIP INSIST THAT GRANTING CUBANS THE SAME RIGHTS ENJOYED BY FOREIGNERS WAS MORE EVIL THAN THE SUFFERING CAUSED BY A SUFFOCATING ECONOMIC EMBARGO MR ASMAN EDITS THE AMERICAS COLUMN 9401070111 940107 PRUDENTIAL LOSES ROUND OVER CLAIMS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS WHO BOUGHT LIMITED PARTNERSHIPS MORE THAN SIX YEARS AGO CAN STILL PURSUE A PRIVATE ARBITRATION CLAIM AGAINST PRUDENTIAL SECURITIES INC A STATE JUDGE RULED IN A TERSE RULING MASSACHUSETTS SUPERIOR COURT JUDGE REGINA QUINLAN DENIED PRUDENTIAL'S BID TO BAR THE INVESTORS FROM FILING AN ARBITRATION CLAIM AGAINST THE FIRM PRUDENTIAL HAD ARGUED THAT THE CASE SHOULD BE THROWN OUT BECAUSE THE INVESTORS HAD FILED THE CLAIM MORE THAN SIX YEARS AFTER BUYING THE PARTNERSHIPS IN VIOLATION OF ARBITRATION RULES THE DECISION HAS BROAD SIGNIFICANCE FOR INVESTORS OF THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT CURRENTLY PRUDENTIAL IS MAILING OUT CLAIM FORMS TO 340000 INVESTORS WHO MUST DECIDE WHETHER TO TAP INTO A 330 MILLION RESTITUTION FUND SET UP BY THE FIRM AS PART OF AN OCTOBER SETTLEMENT WITH REGULATORS OR FILE PRIVATE LEGAL CLAIMS AGAINST THE FIRM MANY INVESTORS BELIEVE THAT IF THEY BOUGHT PARTNERSHIPS MORE THAN SIX YEARS AGO THEIR ONLY SHOT AT RECOVERING MONEY WAS THROUGH THE RESTITUTION FUND THAT'S BECAUSE THE REGULATORY SETTLEMENT ISN'T GOVERNED BY THE STATUTE OF LIMITATIONS THAT NOW APPARENTLY BARS MANY INVESTORS FROM PURSUING OLDER LEGAL CLAIMS UNDER THE REGULATORY ACCORD HOWEVER INVESTORS CAN RECOVER ONLY COMPENSATORY DAMAGES THAT COVER LOSSES NOT PUNITIVE DAMAGES OR ATTORNEYS' FEES THE MASSACHUSETTS CASE DOESN'T HAVE BROAD PRECEDENTIAL VALUE SECURITIES LAWYERS SAY AND IT'S BY NO MEANS THE FIRST RULING OF ITS KIND BUT THE DECISION SHOWS THAT INVESTORS AREN'T NECESSARILY LOCKED INTO THE REPARATIONS FUND TO PURSUE OLDER CLAIMS AGAINST PRUDENTIAL PARTICULARLY IF THEY CAN PROVE THERE WAS NO WAY THEY COULD HAVE DISCOVERED ALLEGED FRAUD UNTIL LONG AFTER THEY BOUGHT THE PARTNERSHIPS LAWYERS SAY PRUDENTIAL WON'T APPEAL THE RULING WHICH NOW GOES TO AN ARBITRATION PANEL THIS RULING DOESN'T PREVENT US FROM ARGUING THE TIME LIMIT IN ARBITRATION SAID JOHN MURRAY PRUDENTIAL'S DIRECTOR OF CORPORATERISK MANAGEMENT THE ARBITRATION PANEL WILL MAKE ITS OWN DECISION A PRUDENTIAL SECURITIES SPOKESMAN ADDED THIS ISN'T EARTHSHATTERING IT HAS HAPPENED BEFORE OVER THE YEARS IN THE MASSACHUSETTS CASE FILED LAST YEAR TWO INVESTORS ACCUSED PRUDENTIAL AND A BROKER OF FRAUD AND UNAUTHORIZED TRADING AMONG OTHER THINGS IN SIX PARTNERSHIPS ALL BOUGHT BETWEEN 1985 AND 1987 BUT PRUDENTIAL TRIED TO BLOCK THE CASE FROM PROCEEDING TO ARBITRATION BEFORE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS CITING THE SIXYEAR TIME LIMIT FOR FILING CLAIMS PRUDENTIAL CITED AN NASD RULE THAT SAYS IN PART THAT NO DISPUTE CLAIM OR CONTROVERSY SHALL BE ELIGIBLE FOR SUBMISSION TO ARBITRATION UNDER THIS CODE WHERE SIX YEARS HAVE ELAPSED FROM THE OCCURRENCE OR EVENT GIVING RISE TO THE ACT OR DISPUTE CLAIM OR CONTROVERSY BUT THE PLAINTIFFS' LAWYERS ARGUED THAT THE CASE WAS FILED ONLY AFTER THE INVESTORS DISCOVERED PROBLEMS WITH THE PARTNERSHIPS THE CLAIMS CLEARLY DIDN'T ARISE WHEN THE INVESTMENTS WERE MADE BUT RATHER WHEN THE INVESTMENTS LOST THEIR VALUE AND THE DEFENDANTS FAILED TO ADVISE THEM THE INVESTORS OF SUCH A LOSS ACCORDING TO PAPERS FILED BY MICHAEL SOBOL AND HARRY MILLER OF SHAFNER & GILLERAN A BOSTON LAW FIRM MANY PRUDENTIAL PARTNERSHIP INVESTORS DIDN'T REALIZE THEIR INVESTMENTS HAD SOURED FOR SEVERAL YEARS THAT'S BECAUSE PRUDENTIAL ALONG WITH MANY OTHER WALL STREET BROKERAGE FIRMS FOR MANY YEARS LISTED INVESTORS' PARTNERSHIP INVESTMENTS AT COST ON MONTHLY BROKERAGEACCOUNT STATEMENTS IN DECEMBER 1991 PRUDENTIAL ADDED A DISCLAIMER THAT THE PARTNERSHIP AMOUNTS ON THE STATEMENTS WERE FACE VALUE ONLY BUT IT STILL DIDN'T DISCLOSE WHAT IN MANY CASES WERE SIGNIFICANT LOSSES THE PROBLEM WAS FURTHER COMPLICATED BECAUSE MANY PARTNERSHIPS WERE HIGHLY ILLIQUID THAT IS THEY COULDN'T EASILY BE RESOLD IN THE SECONDARY MARKETPLACE AS RECENTLY AS JUNE 1993 THE INVESTORS RECEIVED MONTHLY ACCOUNT STATEMENTS WHICH CARRIED THE LIMITED PARTNERSHIPS AT THEIR COST/BASIS ACCORDING TO PAPERS FILED IN THE CASE THIS METHOD OF ACCOUNTING FRAUDULENTLY CONCEALED THE ACTUAL VALUE OF THE LIMITED PARTNERSHIPS INVESTORS WHOSE ACCOUNT STATEMENTS DIDN'T PROPERLY SHOW THE DROP IN PARTNERSHIP VALUES STAND A BETTER CHANCE OF PROVING THAT THEY WEREN'T AWARE OF FRAUD UNTIL LONG AFTER THEY BOUGHT THE INVESTMENT SECURITIES LAWYERS SAY CERTAINLY IF YOU PAID 10000 AND PICKED UP YOUR STATEMENT EVERY MONTH AND IT SHOWED 10000 VALUE THAT COULD HAVE HAD THE EFFECT OF GIVING YOU COMFORT THAT THINGS WERE STILL OK SAYS SAM SCOTT MILLER A NEW YORK SECURITIES LAWYER AND FORMER GENERAL COUNSEL FOR PAINEWEBBER GROUP INC 9401070110 940107 REVIEW & OUTLOOK EDITORIAL ASIDES THREE STRIKES TWICE THIS WEEK THE GOVERNORS OF OUR TWO LARGEST STATES FOCUSED ON CRIMINAL CONTROL IN THEIR ANNUAL STATE MESSAGES PETE WILSON OF CALIFORNIA AND MARIO CUOMO OF NEW YORK BOTH ENDORSED A VERSION OF WASHINGTON STATE'S THREE STRIKES YOU'RE OUT LAW GOVERNOR CUOMO SAID IT'S TIME FELONS WERE TAUGHT A SIMPLE LESSON THREE VIOLENT CRIMES AND YOU'RE IN FOR LIFE WITHOUT PAROLE WHEN AN IDEA IS ENDORSED ON THE SAME DAY BY TWO GOVERNORS OF MEGASTATES ONE DEMOCRAT AND ONE REPUBLICAN IT'S SAFE TO CONCLUDE THE IDEA HAS NOW MOVED TO THE CENTER OF THE NATION'S POLITICAL RADAR SCREEN 9401070109 940107 QUARTERLY MUTUAL FUNDS REVIEW PENDULUM SAYS GROWTH STOCKS AREN'T THE PITS BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE GOOD GUYS ALWAYS WIN IN THE END THAT'S THE BETTING OF SOME MUTUALFUND ANALYSTS WHO ARE RECOMMENDING FUNDS THAT SPECIALIZE IN THE HIGHQUALITY GROWTH STOCKS THAT HAVE BECOME SO DESPISED IN THE PAST TWO YEARS HIGHLY REGARDED FUNDS SUCH AS DREYFUS APPRECIATION FUND PASADENA GROWTH FUND AND VANGUARD US GROWTH PORTFOLIO EITHER SUFFERED SMALL LOSSES OR POSTED ONLY MINUSCULE GAINS LAST YEAR MEANWHILE MOST STOCK FUNDS ROARED AHEAD CLIMBING AN AVERAGE OF 125 IN 1993 FOR MANY GROWTHSTOCK FUNDS IT WAS THE SECOND CONSECUTIVE YEAR OF POOR PERFORMANCE YOU'VE HAD THE PENDULUM SWING FROM 1991 WHEN THE MARKET BELIEVED THAT THESE QUALITY BRANDEDGOODS GROWTH COMPANIES HAD INFINITE PRICING POWER TO THE POINT NOW WHERE THE MARKET THINKS THESE COMPANIES HAVE NO PRICING POWER AT ALL SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IT'S ONE OF THE FEW AREAS OF THE MARKET THAT IS REALLY OUT OF FAVOR MUTUALFUND ANALYSTS OFTEN DIVIDE US STOCK FUNDS INTO FOUR CAMPS LARGECOMPANY GROWTH FUNDS LARGECOMPANY VALUE FUNDS SMALLCOMPANY GROWTH FUNDS AND SMALLCOMPANY VALUE FUNDS GROWTH FUNDS BUY COMPANIES THAT HOLD THE PROMISE OF RAPID FUTURE EARNINGS GROWTH VALUE PLAYERS FAVOR STOCKS THAT ARE CHEAP COMPARED WITH CORPORATE ASSETS OR CURRENT EARNINGS SOME ANALYSTS THINK THAT LARGECOMPANY GROWTH FUNDS NOW ARE AMONG THE MOST ATTRACTIVE SECTORS OF THE STOCKFUND UNIVERSE DESPITE THE RIPROARING BULL MARKET OF THE PAST FEW YEARS THESE FUNDS HAVE TAKEN IT ON THE CHIN AS TOBACCO FOOD AND DRUG STOCKS HAVE FALLEN FROM FAVOR OVER THE PAST YEAR AND A HALF IT'S BEEN ONE OF THE MOST BEATENUP SECTORS OF THE MARKET SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER OVER THE NEXT TWO OR THREE YEARS IT MAY BE ONE OF THE BEST STYLES TO PLAY MR GREGORY IS ADVISING HIS SUBSCRIBERS TO BUY THE VANGUARD US GROWTH PORTFOLIO A NOLOAD NOCOMMISSION MUTUAL FUND WITH A 3000 MINIMUM THAT'S RUN BY CHICAGO'S LINCOLN CAPITAL MANAGEMENT WHILE EARNINGS GROWTH HAS SLOWED IN THE GROWTHSTOCK GROUP YOU'RE STILL GETTING BETTERTHANAVERAGE GROWTH HE NOTES IF THE EARNINGS CONTINUE TO COME THROUGH THE PRICE/EARNINGS MULTIPLES WILL KEEP GETTING BETTER AND BETTER AND THAT SHOULD EVENTUALLY CATCH INVESTORS' ATTENTION THE SELLOFF IN COMPANIES SUCH AS MERCK & CO PFIZER INC AND PHILIP MORRIS COS HAS PUT LARGE DENTS IN THE PERFORMANCES OF SOME WIDELY ADMIRED MUTUALFUND MANAGERS AMONG THOSE WHO HAVE BEEN HIT HARD ARE FAYEZ SAROFIM A PRIVATE MONEY MANAGER WHO HAS RUN THE DREYFUS APPRECIATION FUND SINCE OCTOBER 1990 AND ROGER ENGEMANN MANAGER OF THE PASADENA GROWTH FUND AND THE PASADENA NIFTY FIFTY FUND THE DREYFUS AND PASADENA FUNDS DEMAND A 2500 MINIMUM INVESTMENT THE DREYFUS FUND CAN BE BOUGHT WITHOUT PAYING A LOAD BOTH PASADENA FUNDS CHARGE A 55 SALES COMMISSION LARGECOMPANY GROWTH STOCKS HAVE BEEN SO BATTERED THAT THE SHARES HAVE EVEN ATTRACTED SOME VALUE INVESTORS INCLUDING CLIPPER FUND'S JAMES GIPSON AND YACKTMAN FUND'S DONALD YACKTMAN DESPITE A LARGE STAKE IN TOBACCO AND DRUG STOCKS CLIPPER FUND GAINED 113 LAST YEAR YACKTMAN FUND WASN'T NEARLY SO LUCKY TUMBLING 66 OVER THE PAST 12 MONTHS MORNINGSTAR CALCULATES THE YACKTMAN FUND HAS MORE THAN 32 OF ITS STOCK MARKET MONEY IN HEALTHCARE COMPANIES AND ALMOST 27 IN CONSUMER STAPLES WHICH INCLUDES FOOD AND TOBACCO STOCKS I'M INTERESTED IN THE LOW PRICE/EARNINGS PART AND YACKTMAN FUND FITS THAT TO A T SAYS LEWIS ALTFEST PRESIDENT OF LJ ALTFEST & CO A NEW YORK INVESTMENT ADVISER I THINK THE NEXT YEAR IS GOING TO BE A GOOD YEAR FOR YACKTMAN YACKTMAN IS THE PUREST PLAY ON WHAT'S DONE POORLY GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER A CHICAGO NEWSLETTER IS INTRIGUED BY BOTH THE YACKTMAN FUND AND THE VANGUARD INDEX TRUSTGROWTH PORTFOLIO AN INDEX FUND THAT OWNS THE GROWTH STOCKS IN THE STANDARD & POOR'S 500STOCK INDEX VANGUARD INDEX TRUSTGROWTH PORTFOLIO EKED OUT A GAIN OF 15 LAST YEAR WHILE THE VANGUARD INDEX TRUSTVALUE PORTFOLIO WHICH OWNS THE VALUE STOCKS IN THE S&P 500 SOARED 183 WE'RE WATCHING THE GROWTHSTOCK SECTOR VERY VERY CLOSELY SAYS MR PERRITT I THINK IT'S A LITTLE TOO EARLY I SUSPECT THAT SOMETIME THIS YEAR PROBABLY IN THE FIRST HALF THERE WILL BE A NEGATIVE SURPRISE WHICH WILL SET OFF A CORRECTION AND THAT'S WHEN I JUMP IN WITH BOTH FEET NOT EVERYBODY IS BULLISH ON LARGECOMPANY GROWTH STOCKS YOU'RE STILL BUYING INTO A PRICEY MARKET SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH AND IF THE MARKET GOES DOWN THOSE FUNDS WILL PROBABLY STILL GO DOWN MORE THAN THE VALUE FUNDS MORNINGSTAR'S MR PHILLIPS WHO OWNS BOTH THE PASADENA NIFTY FIFTY FUND AND THE YACKTMAN FUND CONCEDES THAT THE LARGECOMPANY GROWTH FUNDS WILL TAKE A TUMBLE IF THE BROAD MARKET FALLS BUT HE THINKS THAT BECAUSE THE STOCKS ARE DOWN A LOT ALREADY THAT COULD PROVIDE A CUSHION IF THERE'S A MARKETWIDE SELLOFF 9401070108 940107 BUSINESS OF LAW LEGAL BEAT AIG WILL OFFER INSURANCE POLICY FOR DEFENDANTS IN PATENT CASES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL A MAJOR INSURER IS SET TO OFFER PATENTINFRINGEMENT INSURANCE A MOVE THAT REFLECTS THE GROWING IMPORTANCE OF PATENT PROTECTION IN HIGHTECHNOLOGY INDUSTRIES AMERICAN INTERNATIONAL GROUP INC'S POLICY WILL COVER UP TO 5 MILLION A YEAR FOR LIABILITY AND LEGAL EXPENSES INCURRED BY DEFENDANTS IN PATENT CASES THE POLICY IS DESIGNED PRIMARILY FOR LARGE COMPANIES ACCUSED OF ILLEGALLY MARKETING PATENTED PRODUCTS OR USING PATENTED TECHNOLOGY AIG'S MOVE COMES IN RESPONSE TO THE GROWING TENDENCY OF SUCH DISPUTES TO LAND IN THE COURTS AS PATENT OWNERS SEEK LEGAL PROTECTION FOR THEIR EXCLUSIVE SALES RIGHTS IN 1992 1474 PATENT CASES WERE FILED IN FEDERAL COURTS NEARLY A 75 INCREASE OVER A DECADE EARLIER ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE US COURTS THE RISE IN LITIGATION HAS BEEN FUELED BY THE ENORMOUS VALUE OF PATENTED INVENTIONS IN HIGHTECHNOLOGY INDUSTRIES AND BY THE LURE OF BIG JURY AWARDS IN SOME RECENT CASES DECLINING SALES IN SOME RECESSIONPLAGUED INDUSTRIES HAVE ALSO PLAYED A ROLE MAKING COMPANIES THAT HOLD PATENTS MORE ZEALOUS ABOUT TRYING TO KEEP INFRINGERS AWAY FROM THEIR TURF BECAUSE PATENT SUITS TYPICALLY REVOLVE AROUND COMPLICATED TECHNOLOGY THEY ARE AMONG THE MOST CUMBERSOME AND EXPENSIVE CASES IN THE LEGAL SYSTEM AND SOME PATENT SPECIALISTS WORRY THAT THE AVAILABILITY OF INSURANCE WILL BOG THE COURTS DOWN WITH EVEN MORE COMPLEX LITIGATION THE MORE BROADLY YOU'RE INSURED AGAINST THIS SORT OF THING THE MORE YOU LOOK LIKE A SUITABLE TARGET BY SOMEBODY WHO HAS A PATENT SAYS KENNETH MADSEN A PATENT LAWYER AT THE NEW YORK LAW FIRM KENYON & KENYON IT'S A STEP IN THE DIRECTION OF PERSONALINJURY LITIGATION MR MADSEN ADDS WHICH WOULD BE GREATLY DIMINISHED WERE IT NOT FOR THE INSURANCE COVERAGE PATENT OWNERS THEMSELVES ALREADY HAVE ACCESS TO INSURANCE THAT COVERS THEIR EXPENSES AS PLAINTIFFS INTELLECTUAL PROPERTY INSURANCE SERVICES CORP LOUISVILLE KY FOR EXAMPLE OFFERS SMALL COMPANIES POLICIES THAT WILL PAY UP TO 500000 TO ENFORCE PATENTS THEY BELIEVE ARE BEING INFRINGED ALSO A NUMBER OF INVESTMENT POOLS AND LIMITED PARTNERSHIPS RECENTLY HAVE EMERGED TO HELP FUND SMALL INVENTORS' LAWSUITS IN RETURN FOR A CUT OF ANY JUDGMENT OR SETTLEMENT ROBERT FLETCHER PRESIDENT OF INTELLECTUAL PROPERTY INSURANCE SERVICES ACKNOWLEDGES THAT FINANCING PATENT LAWSUITS MAY ENCOURAGE MORE LITIGATION HOWEVER HE SAYS MANY OF THOSE SUITS ARE NECESSARY TO ENFORCE THE RIGHTS OF LITTLE GUYS WHO AREN'T BEING TREATED FAIRLY BY THE PATENT SYSTEM IN THE PAST MANY DEFENDANTS IN PATENT CASES HAVE TRIED TO OBTAIN INSURANCE COVERAGE THROUGH THEIR SOCALLED COMPREHENSIVE GENERAL LIABILITY POLICIES BUT INSURERS INCLUDING AIG HAVE BALKED AT THOSE EFFORTS INSISTING THAT THE COMPREHENSIVE POLICIES WEREN'T DESIGNED FOR PATENT DISPUTES LAST SEPTEMBER A CALIFORNIA APPEALS COURT AGREED WITH THE INSURERS RULING THAT AN AETNA CASUALTY & SURETY CO COMPREHENSIVE POLICY DOESN'T COVER PATENT CASES ONE REASON AIG AND OTHER INSURERS HAVE AVOIDED PATENTINFRINGEMENT INSURANCE UNTIL NOW IS THE DIFFICULTY IN ASSESSING THE EXTENT OF A COMPANY'S VULNERABILITY PARTICULARLY WITH HIGHTECH PRODUCTS IT IS OFTEN UNCLEAR EXACTLY WHAT A PARTICULAR PATENT COVERS OR HOW SIMILAR ONE INVENTION IS TO ANOTHER AS A RESULT EVEN COMPANIES THAT APPEAR TO BE ACTING WITHIN THEIR RIGHTS OFTEN FIND THEMSELVES TARGETS OF INFRINGEMENT SUITS IN ADDITION UNLIKE PERSONALINJURY CASES IN WHICH ONE SIDE OFTEN CONCEDES LIABILITY BUT FIGHTS OVER THE AMOUNT OF DAMAGES PATENT CASES USUALLY INVOLVE CONTESTS OVER BOTH LIABILITY AND DAMAGES IN A PATENT CASE YOU HAVE TWO BIG UNKNOWNS INSTEAD OF ONE BIG UNKNOWN SAYS MR MADSEN THE PATENT LAWYER BY INSURING SUCH CASES YOU'RE BUYING A VERY HIGH RISK SOME INSURERS HAVEN'T OFFERED PATENTLIABILITY POLICIES BECAUSE OF THE FEAR THAT SOME COMPANIES MIGHT INTENTIONALLY INFRINGE PATENTS KNOWING THAT THE INSURER WOULD PICK UP THE TAB OF ANY LITIGATION IT'S LIKE INSURING MURDER SAYS SEAN MOONEY AN ECONOMIST AT THE INSURANCE INFORMATION INSTITUTE A TRADE ASSOCIATION PROTECTING PEOPLE FROM LIABILITY OFTEN ENCOURAGES THAT KIND OF BEHAVIOR AIG WILL ATTEMPT TO CONTROL ITS RISK ON THE NEW POLICIES BY REQUIRING HIGHER DEDUCTIBLES AND CHARGING HIGHER PREMIUMS FOR COMPANIES THAT HAVE A HISTORY OF LITIGATION OR THAT HAVEN'T CLOSELY SCRUTINIZED THEIR OWN VULNERABILITY TO LAWSUITS ANNUAL PREMIUMS FOR 5 MILLION OF COVERAGE ARE EXPECTED TO AVERAGE BETWEEN 150000 AND 200000 A YEAR AN AIG SPOKESMAN SAID THE POLICY DOESN'T COVER PUNITIVE DAMAGES WHICH COULD BE AWARDED IN CASES WHERE A COMPANY INTENTIONALLY INFRINGES A PATENT MILBANK TWEED HADLEY & MCCLOY LOST THE APPEAL OF A 2 MILLION JURY VERDICT AGAINST IT STEMMING FROM AN ALLEGED CONFLICT OF INTEREST IN A RULING BY THE SECOND US CIRCUIT COURT OF APPEALS MILBANK WAS FOUND TO HAVE COMMITTED A SERIOUS BREACH OF ITS FIDUCIARY DUTY WHEN WITHOUT ITS CLIENT'S CONSENT IT REPRESENTED THE CLIENT'S AGENT IN A DEAL THAT WAS ALLEGEDLY AGAINST THE CLIENT'S INTERESTS THE DECISION INVOLVED FORMER CLIENT CAROL SUIHAN LEO THE DAUGHTER OF MALAYSIAN INVESTOR TK WEN MRS LEO RETAINED THE BIG NEW YORK LAW FIRM IN 1985 TO REPRESENT HER IN THE TWOSTEP PURCHASE OF CERTAIN ASSETS OF THE BANKRUPT DEAK & CO THE NATURE AND EXTENT OF THE ATTORNEYCLIENT RELATIONSHIP WAS CLOSELY CONTESTED BY MILBANK AT TRIAL WHEN MRS LEO HESITATED TO COMPLETE THE SECOND STAGE OF THE 52 MILLION DEAL HER AGENT SINGAPORE ATTORNEY CHAN CHER BOON EXPRESSED INTEREST AFTER STATING IN WRITING THAT IT WOULDN'T COUNSEL HIM IN ANY RELATED MATTER WITHOUT MRS LEO'S PERMISSION MILBANK PROCEEDED TO REPRESENT MR CHAN IN A SUCCESSFUL BID FOR THE REMAINING ASSETS ACCORDING TO THE COURT'S OPINION MILBANK ARGUED THAT MRS LEO WAS NOT HARMED BY ITS SUBSEQUENT REPRESENTATION OF MR CHAN BECAUSE SHE COULD NOT SHOW THAT THE FIRM'S CONDUCT CAUSED HER TO LOSE ASSETS FOR WHICH SHE NEVER BID BUT THE THREECOURT PANEL REJECTED THE ARGUMENT SHE WAS PREVENTED FROM OBTAINING THE SECONDSTAGE ASSETS BY HER FORMER AGENT ASSISTED BY HER FORMER ATTORNEY THE COURT WROTE ANDREW S O'CONNOR AN ATTORNEY WITH THE NEW YORK FIRM LIDDLE O'CONNOR FINKELSTEIN & ROBINSON WHICH REPRESENTED MILBANK SAID THE LAW FIRM HAD NOT DECIDED WHETHER TO PURSUE AN APPEAL MILBANK TWEED VS CHAN CHER BOON NO 937418 A NEW YORK LAWYER WAS ARRAIGNED IN FEDERAL COURT IN MANHATTAN FOR HIS ALLEGED PARTICIPATION IN TWO SEPARATE INSIDERTRADING RINGS ONE INVOLVING ILLEGAL TRADES IN THE SHARES OF NORTON CO AND THE OTHER INVOLVING THE SHARES OF MOTEL 6 LP THE ARRAIGNMENT MARKS THE FIRST TIME PROSECUTORS HAVE CHARGED ANY INDIVIDUAL WITH PARTICIPATION IN BOTH RINGS THE US ATTORNEY'S OFFICE IN MANHATTAN CHARGED JOSEPH GREENWALD WITH CONSPIRACY IN RELATION TO TRADES IN THE SHARES OF BOTH COMPANIES' STOCK IN 1990 BEFORE THE PUBLIC ANNOUNCEMENT THAT THEY WERE TARGETS OF TENDER OFFERS MR GREENWALD OPERATES GREENWALD SECURITIES TRADING INC FROM OFFICES IN LOWER MANHATTAN WHERE MICHAEL BORLINGHAUS A GERMAN INVESTOR WHO PLEADED GUILTY TO CHARGES STEMMING FROM THE NORTON INVESTIGATION ALSO LEASED SPACE MR GREENWALD 33 YEARS OLD WAS ALSO A FRIEND AND COLLEGE CLASSMATE OF JOHN ANDERSON A CALIFORNIA TANNINGSALON OWNER WHO PLEADED GUILTY TO CONSPIRACY IN THE MOTEL 6 CASE AND FROM WHOM PROSECUTORS CONTEND MR GREENWALD RECEIVED CERTAIN INSIDE INFORMATION BOTH MR BORLINGHAUS AND MR ANDERSON AWAIT SENTENCING TO DATE 11 INDIVIDUALS HAVE BEEN CRIMINALLY CHARGED IN ONE OR ANOTHER OF THE TWO CASES ACCORDING TO ASSISTANT US ATTORNEY DAVID MEISTER WHO SAID INVESTIGATIONS INTO BOTH MATTERS CONTINUE NOTED JAY B STEPHENS FORMER US ATTORNEY IN WASHINGTON DC IS JOINING THE WASHINGTON OFFICE OF PILLSBURY MADISON & SUTRO MR STEPHENS FREQUENTLY MENTIONED AS A POSSIBLE REPUBLICAN CANDIDATE FOR THE US SENATE IN VIRGINIA SAID HE IS WITHDRAWING FROM CONSIDERATION IN THE RACE AND WILL BE AN ACTIVE LITIGATION PARTNER AT THE TIME HE WAS REMOVED AS US ATTORNEY BY THE NEW ADMINISTRATION LAST APRIL MR STEPHENS WAS OVERSEEING AN INVESTIGATION OF THE HOUSE POST OFFICE AND ITS DEALINGS WITH WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL THE PROBE IS CONTINUING MR ROSTENKOWSKI HAS NOT BEEN CHARGED WITH ANY WRONGDOING MARGARET A JACOBS CONTRIBUTED TO THIS ARTICLE 9401070107 940107 LETTERS TO THE EDITOR TOUGH ENOUGH A DEC 10 WASHINGTON WIRE ITEM GIVES THE FALSE IMPRESSION ABOUT MY FRIEND PHIL LADER IE THAT HE IS NOT TOUGH ENOUGH TO BE DEPUTY CHIEF OF STAFF AT THE WHITE HOUSE HIS CRITICS ARE CONFUSING STYLE WITH SUBSTANCE WHEN PHIL RAN FOR GOVERNOR IN SOUTH CAROLINA IN 1986 I WAS THE COORDINATOR OF HIS CAMPAIGN IN CHARLESTON HE EXPECTED ALL TASKS TO BE PERFORMED SWIFTLY AND COMPETENTLY MORE IMPORTANT HE INSPIRES THE PEOPLE WHO WORK FOR HIM TO PLAY AT THE TOP OF THEIR GAME IT WILL BECOME QUICKLY APPARENT TO ANYONE IN DOUBT THAT PRESIDENT CLINTON HAS CHOSEN WISELY 9401070106 940107 QUARTERLY MUTUAL FUNDS REVIEW CANADIAN WHIZZES COIN NEW FUNDFINANCING VEHICLES BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADA'S FINANCIAL WIZARDS ARE CRAFTING WAYS FOR AFFLUENT INVESTORS TO KEEP TAXES AT BAY WHILE THEY HELP TO FINANCE THE SURGING SALES OF CANADIAN MUTUAL FUNDS AS MUCH AS 80 OF NEW FUND SALES IN CANADA ARE OF THE DEFERREDLOAD VARIETY WHERE THE INVESTOR DOESN'T PAY A SALES CHARGE UPFRONT BUT RATHER PAYS IT UPON LEAVING THE FUND THE LOAD DECLINES AS INVESTORS STAY IN THE FUND TYPICALLY REACHING ZERO AFTER ABOUT SIX YEARS THIS STRUCTURE HAS HELPED CANADIAN INDUSTRY ASSETS TO SOAR BUT IT IS A CASH DRAIN FOR FUND COMPANIES WHICH FIND THEMSELVES IN THE AWKWARD POSITION OF HAVING TO PAY SALES COMMISSIONS UPFRONT TO A FUNDSELLING BROKER WHILE WAITING FOR MONTHS OR YEARS TO COLLECT A LOAD TO MEET THEIR CASH NEEDS MOST FUND COMPANIES PREVIOUSLY TURNED TO LIMITED PARTNERSHIPS OFFERING RETURNS OF AS MUCH AS 20 ANNUALLY IN EXCHANGE FOR CAPITAL BUT TODAY THE CANADIAN GOVERNMENT IS CHIPPING AWAY AT THE TAX BREAKS AND INCENTIVES THAT HAVE MADE THEM ATTRACTIVE TO INVESTORS SO NOW CANADA'S INVESTMENT DEALERS ARE RUSHING TO THE RESCUE OF THE FUND COMPANIES OFFERING A VARIETY OF NEW WAYS TO PACKAGE INTO SECURITIES THE LOANS THAT FINANCE THE BROKERS' FUNDSALES COMMISSIONS SCOTIAMCLEOD INC A TORONTO INVESTMENT DEALER IS OFFERING TO ACQUIRE AND ROLL UP INTO ONE BIGGER ENTERPRISE 12 SMALL LIMITED PARTNERSHIPS VALUED AT A TOTAL OF ABOUT 90 MILLION CANADIAN DOLLARS US682 MILLION IN EXCHANGE INVESTORS WOULD RECEIVE SHARES IN A PUBLICLY TRADED LIMITED PARTNERSHIP MASTER MUTUAL LIMITED PARTNERSHIP WHICH UNDER NEW TAX RULES WOULD BE ELIGIBLE FOR INCLUSION IN RETIREMENTSAVINGS PLANS THUS SHELTERING THE HIGHYIELDING INVESTMENT FROM TAX HOLDERS OF THE ENTITIES SCOTIAMCLEOD IS SEEKING TO ACQUIRE ALREADY HAVE REAPED ALL OF THEIR UPFRONT TAX SAVINGS A 50 WRITEOFF IN THE FIRST YEAR AND A 25 DEDUCTION IN EACH OF THE NEXT TWO YEARS WITH THOSE TAX SAVINGS USED UP INVESTORS FACE A PRETTY HEAVY TAX BURDEN SAYS ROBERT WILLIAMS SENIOR VICE PRESIDENT AND DIRECTOR OF EQUITY CAPITAL MARKETS AT SCOTIAMCLEOD THIS WOULD GIVE THEM LIQUIDITY AND ALLOW THEM TO SHELTER THE INCOME STREAM STEVE KANGAS A MUTUALFUND ANALYST AT MIDLAND WALWYN CAPITAL SAYS THE POOLING OF THE PARTNERSHIPS OFFERING INVESTORS LIQUIDITY AND FURTHER TAX BREAKS COULD HELP TO ENSURE THE FUTURE OF THE FINANCING VEHICLE EVEN IF AS EXPECTED THE CANADIAN GOVERNMENT REMOVES SOME OF THE UPFRONT TAX BREAKS FOR OTHER PARTNERSHIPS IT REMAINS TO BE SEEN WHETHER THE SCOTIAMCLEOD OFFER WILL SUCCEED IT ALREADY HAS BEEN AMENDED TO RESPOND TO CONCERNS OVER NEW MANAGEMENT FEES AND OTHER ISSUES THE BID EXPIRES JAN 18 THE MUTUALFUND CONCERNS THAT FORMED THE LIMITED PARTNERSHIPS SCOTIAMCLEOD IS SEEKING TO ACQUIRE HAVE YET TO RECOMMEND EITHER ACCEPTANCE OR REJECTION AT LEAST ONE MAJOR FUND CONCERN MACKENZIE FINANCIAL CORP OPTED INSTEAD TO FORGE AHEAD WITH ITS OWN SIMILAR PLAN WITH NEARLY C8 BILLION IN ASSETS UNDER MANAGEMENT THE COMPANY HAS ENOUGH OF ITS OWN LIMITED PARTNERSHIPS OUTSTANDING TO CONSOLIDATE THEM AND LIST THE NEW ENTITY ON THE TORONTO STOCK EXCHANGE EARLY THIS YEAR UNLIKE THE SCOTIAMCLEOD PROPOSAL MACKENZIE WON'T CHARGE INVESTORS A MANAGEMENT FEE IN THE MEANTIME ANOTHER CANADIAN INVESTMENT DEALER HAS COME UP WITH A SOLUTION IT HOPES WILL PROVIDE AN ALTERNATIVE TO THE LIMITED PARTNERSHIPS BURNS FRY LTD PLANS TO LAUNCH THIS MONTH A PLAN TO SECURITIZE THE FUTURE INCOME STREAM FROM A DEFERREDLOAD FUND AND MARKET A FIXEDINCOME SECURITY TO INSTITUTIONAL INVESTORS THESE WOULD BE ATTRACTIVE INVESTMENTS SINCE UNLIKE CAR LOANS OR CREDITCARD SECURITIZATIONS THE RISK OF DEFAULT IS ZERO SAYS KEN SCOTT AN ASSOCIATE AT BURNS FRY IN OTHER WORDS PEOPLE CAN'T PULL THEIR MONEY OUT OF A FUND WITHOUT PAYING THE REQUIRED FEES PRINCIPAL PAYMENTS ARE SPREAD OVER THE LIFE OF THE NOTES WITH THE TERM MATCHING THE PERIOD DURING WHICH INVESTORS HAVE TO PAY A LOAD UPON EXITING BY THE TIME SAY SIX YEARS HAVE PASSED AND NO LOAD IS BEING CHARGED TO INVESTORS WHO HAVE STAYED IN THE FUND THE NOTE WOULD HAVE BEEN PAID OFF IN FULL BECAUSE INSTITUTIONAL INVESTORS IN RETURN FOR A SECURE FIXEDINCOME INVESTMENT WON'T SEEK THE SAME HIGH RETURNS AS INDIVIDUALS BUYING INTO THE LIMITED PARTNERSHIPS MR SCOTT SAYS HE BELIEVES THIS WILL BE A CHEAPER OPTION FOR MUTUALFUND COMPANIES THESE INITIATIVES ARE IMPORTANT BECAUSE FOR MOST COMPANIES THE COMMISSION COSTS CAN'T BE FINANCED THROUGH NORMAL BANK LOANS SAYS MR KANGAS ONE OPTION THAT NO ONE SEEMS TO BE CONSIDERING IS ABANDONING THE TACTIC OF USING DEFERREDLOAD FUNDS EVEN EXECUTIVES AT TRIMARK FINANCIAL CORP WHICH WAS FORCED TO GO PUBLIC MUCH EARLIER THAN PLANNED TO RAISE CAPITAL TO PAY COMMISSIONS SAY THEY EXPECT THESE FUNDS TO CONTINUE TO REPRESENT A SIGNIFICANT PART OF FUTURE SALES TO DATE TRIMARK IS THE ONLY LARGE FUND MANAGER THAT HASN'T TURNED TO LIMITED PARTNERSHIPS TO FINANCE COMMISSION COSTS ANALYSTS AGREE THE PROBLEM IS ONE THAT MAY SOON REAR ITS HEAD IN THE US WHERE DEFERRED LOAD FUNDS ARE GAINING IN POPULARITY AS COMPETITION WITH NOLOAD FUNDS GROWS FUND COMPANIES ARE BEING PUSHED INTO LOWERING FEES OR OFFERING A DEFERREDLOAD PRODUCT ANALYSTS EXPECT THE DEFERREDLOAD FUNDS NOW THE FASTESTGROWING SEGMENT OF THE MARKET TO REPRESENT AS MUCH AS 20 OF THE US FUND INDUSTRY'S LONGTERM ASSETS UNDER MANAGEMENT BY YEAR END UP FROM ABOUT 15 LAST YEAR 9401070105 940107 ECONOMY RETAILERS POST MODERATE GAINS IN HOLIDAY SALES BETTER RESULTS ATTRIBUTED TO STEEP DISCOUNTING IMPACT ON PROFITS SEEN BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL STRONG CONSUMER BUYING JUST BEFORE AND AFTER CHRISTMAS HELPED THE NATION'S BIGGEST RETAIL CHAINS RING UP MODEST SALES GAINS FOR THE HOLIDAY PERIOD BUT THE RESULTS REPORTED YESTERDAY WERE ACHIEVED ONLY AFTER RETAILERS RESORTED TO STEEP DISCOUNTING ESPECIALLY IN THE WEAKERTHANUSUAL APPAREL AREA ANALYSTS EXPECT THIS TO HURT FOURTHQUARTER PROFITS AT MANY STORES OVERALL SALES IN STORES OPEN AT LEAST A YEAR INCREASED 43 IN DECEMBER ACCORDING TO AN INDEX COMPILED BY SALOMON BROTHERS ANOTHER INDEX PREPARED BY MERRILL LYNCH & CO PUT THE SAMESTORE SALES GAIN AT 36 FOR THE MONTH BOTH FIGURES WERE IN LINE WITH WHAT ANALYSTS SAID THEY EXPECTED AT THE END OF THE HOLIDAY SEASON THE BUOYANT FINISH TO DECEMBER HAS RETAIL WATCHERS DISAGREEING ABOUT WHAT WILL HAPPEN IN THE FIRST MONTHS OF THIS YEAR SOME SAID CONSUMERS WILL CONTINUE THEIR AGGRESSIVE SPENDING OTHERS BELIEVE SHOPPERS WILL BEHAVE AS THEY DID LAST YEAR WHEN THE FIRST QUARTER SAW A BROAD CONSUMER PULLBACK RETAILERS' FORTUNES CONTINUED TO HINGE ON THE TYPE OF STORES THEY OPERATED DEPARTMENT STORES BUOYED BY CONSUMER INTEREST IN HOME FURNISHINGS REPORTED STRONGER SALES THAN ANALYSTS EXPECTED EVEN THOUGH APPAREL SALES WERE ANEMIC SPECIALTY APPAREL CHAINS HAD A WEAK SHOWING UNDERPERFORMING ANALYSTS' MODEST EXPECTATIONS DISCOUNT STORES HAD MODERATE GAINS MEETING ANALYSTS' EXPECTATIONS BUT WAREHOUSE CLUBS DID POORLY FAILING TO MEET EXPECTATIONS WITH THE EXCEPTION OF TOY SALES THE HOLIDAY PERIOD IS LESS IMPORTANT FOR DISCOUNT STORES THAN FOR OTHER RETAIL FORMATS MANY RETAILERS ATTRACTED CUSTOMERS THE WEEK AFTER CHRISTMAS BY CUTTING PRICES THE WEEK AFTER CHRISTMAS IS USUALLY A GOOD WEEK BUT IT WAS A VERY GOOD WEEK THIS YEAR A DAYTON HUDSON CORP SPOKESWOMAN SAID THERE WAS A LOT OF APPAREL ON SALE BECAUSE CONSUMERS DIDN'T BUY IT BEFORE CHRISTMAS SHE SAID FOR DECEMBER AS A WHOLE AUTO SALES AND HOME PRODUCT SALES CROWDED OUT APPAREL SALES SAID EDWARD JOHNSON A RETAIL ANALYST WITH LYNCH JONES & RYAN INC THAT WILL CONTINUE THIS YEAR BUT IT WON'T BE AS DESTRUCTIVE TO CLOTHING SALES HE SAID SOME DEPARTMENT STORES DID EXCEPTIONALLY WELL JC PENNEY CO SAID STRONG SALES OF HOME FURNISHINGS AND APPAREL AND ITS BIGGER HOLIDAY ADVERTISING BUDGET PRODUCED A 10 GAIN IN SAMESTORE SALES WHICH REPRESENT SALES AT STORES OPEN AT LEAST A YEAR SEARS ROEBUCK & CO BENEFITED FROM IMPROVED CONSUMER ELECTRONICS APPLIANCE AND HOMEFURNISHING SALES AS WELL AS STRONG APPAREL SALES WHICH HELPED THE COMPANY SCORE A 133 SAMESTORE SALES GAIN SALES AT OTHER DEPARTMENT STORE CHAINS WERE LESS BUOYANT MAY DEPARTMENT STORES CO THE NATION'S LARGEST OPERATOR OF TRADITIONAL DEPARTMENT STORES REPORTED A 49 SALES GAIN IN DECEMBER FEDERATED DEPARTMENT STORES INC SAID IT GOT TWO SURPISES FOR CHRISTMAS STEEPERTHANPLANNED DISCOUNTS AND HIGHERTHANEXPECTED SALES FEDERATED'S SAMESTORE SALES INCREASED 48 FOR THE MONTH SPECIALTY APPAREL SELLERS WEREN'T SO LUCKY LIMITED INC REPORTED A 1 DECLINE IN SAMESTORE SALES IN DECEMBER WHILE MELVILLE CORP SAID ITS SALES DROPPED 08 IN THE MONTH GAP INC HOWEVER FARED BETTER THAN MOST CLOTHING SELLERS REGISTERING A 4 SAMESTORE SALES GAIN TJX CO'S SAMESTORE SALES INCREASED 3 DISCOUNTSTORE OPERATORS POSTED MODERATE GAINS WALMART STORES INC THE NATION'S LARGEST RETAILER SAID ITS DECEMBER SAMESTORE SALES ROSE 4 THE COMPANY WAS HURT BY A 5 SAMESTORE SALES DECLINE AT ITS SAM'S CLUB WAREHOUSE STORES KMART CORP HURT BY POOR PERFORMANCE IN ITS WAREHOUSE AND DRUGSTORE UNITS EKED OUT A 11 SAMESTORE SALES INCREASE DAYTON HUDSON CORP WHICH OPERATES TARGET DISCOUNT STORES MERVYN'S MODERATEPRICE STORES AND UPSCALE DEPARTMENT STORES REPORTED A 32 SAMESTORE SALES GAIN LOOKING AHEAD KAREN SACK A STANDARD & POOR'S CORP RETAIL ANALYST BELIEVES 1994 WILL HAVE ITS UPS AND DOWNS AS 1993 DID THE FIRST QUARTER WILL PROBABLY BE VERY WEAK SHE SAID BEFORE PICKING UP LATER IN THE YEAR I'M LOOKING FOR A SAWTOOTHED PATTERN TO RETAIL SALES THIS YEAR 9401070104 940107 ADVERTISING DEAD CELEBRITIES ARE RESURRECTED AS PITCHMEN BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL DEAD MEN MAY TELL NO TALES BUT MADISON AVENUE IS COUNTING ON THEM TO SELL PRODUCTS DECEASED NOTABLES ARE BEING FEATURED IN PRINT AND TELEVISION ADS TO HAWK EVERYTHING FROM THE INTEGRITY OF BROKERAGE HOUSES TO THE COMFORT OF KHAKI TROUSERS COMPANIES SUCH AS MCDONALD'S GAP AND PEPSICO ARE SEARCHING THROUGH THE ESTATES OF THE DEPARTED TO GET PERMISSION AND PAY FEES FOR THE USE OF THE CELEBRITY ONE REASON FOR THE TREND SAY ADVERTISING INDUSTRY OFFICIALS IS THAT THERE'S VIRTUALLY NO RISK OF BEING EMBARRASSED NO MICHAEL JACKSON OR MADONNA TO WORRY PEPSI EXECUTIVES WITH THEIR ALLEGED MISBEHAVIOR LAST YEAR THE FLORIDA DEPARTMENT OF CITRUS AIRED COMMERCIALS WITH BURT REYNOLDS WHILE HIS MESSY SEPARATION FROM LONI ANDERSON WAS BEING PLAYED OUT IN TABLOIDS AND ON TALK SHOWS THE COMMERCIALS WERE PULLED IN JULY FOUR MONTHS BEFORE THE CONCLUSION OF MR REYNOLDS' ONEYEAR CONTRACT PEOPLE STARTED TALKING MORE ABOUT BURT REYNOLDS AND HIS DIVORCE THAN BURT REYNOLDS AND ORANGE JUICE SAYS GENE RICHMOND THE STATE AGENCY'S DIRECTOR OF ADVERTISING A DEAD CELEBRITY IS A VERY SAFE COMMODITY FOR AN ADVERTISER TO USE THE CLIENT KNOWS WHAT HE IS GETTING SAYS MARK ROESLER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CURTIS MANAGEMENT IN INDIANAPOLIS WHICH REPRESENTS THE ESTATES AND FAMILIES OF DECEASED NOTABLES THE IMAGE THEY PROJECT DOESN'T DEVIATE FROM ONE MOMENT TO THE NEXT WITH LIVING CELEBRITIES A COMPANY MAY SIGN SOMEONE WHO IS CONSIDERED HOT AND SPEND MILLIONS BUILDING A MARKETING CAMPAIGN AROUND THAT PERSON IF THE CELEBRITY'S POPULARITY FADES QUICKLY THE AGENCY AND THE CLIENT ARE LEFT LOOKING FOR A NEW SPOKESMAN PERHAPS THAT IS WHY THE GAP'S WELLRECEIVED PRINT CAMPAIGN FOR ITS LINE OF KHAKI TROUSERS FEATURES SUCH STARS AS HUMPHREY BOGART ORSON WELLS ROCK HUDSON SAMMY DAVIS JR MARILYN MONROE PHOTOGRAPHER ANSEL ADAMS AND BROADWAY PRODUCER AND COMPOSER MOSS HART THERE ARE TWO LIVING CELEBRITIES IN THE GAP CAMPAIGN GENE KELLY AND PLAYWRIGHT ARTHUR MILLER A SPOKESMAN FOR THE SAN FRANCISCOBASED COMPANY SAYS THE CAMPAIGN BEGAN WHEN SOME MARKETING EXPERTS SUGGESTING USING PRESIDENT JOHN F KENNEDY IN THE KHAKI ADS THAT WAS INSTANTLY RULED OUT BY OTHER GAP EXECUTIVES THE SPOKESMAN SAYS BUT GAP MARKETERS WERE TOLD TO DRAW UP A WISH LIST OF CELEBRITIES WHO ILLUSTRATE LEGENDARY STYLE MR BOGART WHO DIED IN 1957 ALSO WAS ONE OF THE DEAD STARS ALONG WITH LOUIS ARMSTRONG JAMES CAGNEY AND CARY GRANT FEATURED IN A POPULAR DIET COKE CAMPAIGN IN 1992 CURTIS MANAGEMENT WHICH HANDLES USE OF MR BOGART'S IMAGE SAYS IT IS NEGOTIATING TO HAVE MR BOGART'S IMAGE APPEAR IN ADS FOR A TELECOMMUNICATIONS COMPANY IT DECLINES TO NAME THE COMPANY MCDONALD'S COMPLETED A CAMPAIGN LATE LAST YEAR WITH ACTORS PORTRAYING THE COMEDY TEAM OF ABBOTT AND COSTELLO FOR A TAKEOFF ON THE DUO'S FAMOUS WHO'S ON FIRST ROUTINE EVEN THOUGH IMAGES OF NEITHER BUD ABBOTT NOR LOU COSTELLO WERE IN THE SPOTS MCDONALD'S HAD TO PAY A FEE TO CURTIS MANAGEMENT FOR USE OF THEIR LIKENESSES AND PEPSI IS USING A BUDDY HOLLY LOOKALIKE FOR AN INTERNATIONAL TELEVISION CAMPAIGN IN THE SPOT A BORED STUDENT IN AN ALGEBRA CLASS SAYS TO NO ONE IN PARTICULAR AS BUDDY HOLLY WOULD SAY BE THERE OR BE SQUARE' THE CAMERA THEN FLASHES ON THE LOOKALIKE MARKETING EXPERTS SAY THE PARADE OF DECEASED STARS ISN'T GHOULISH CELEBRITIES LIKE BOGART RESONATE WITH BABY BOOMERS AND THEIR PARENTS SAYS LILLIAN MARESCH FOUNDER AND PRESIDENT OF GENERATION INSIGHTS IN MINNEAPOLIS THE BOOMERS ARE COMING TO TERMS WITH THEIR OWN MORTALITY AS THEY GET OLDER SO THEY DON'T NECESSARILY RUN FROM DEATH OR GET THE SAME GOOSE BUMPS AS WHEN THEY WERE CHILDREN OR YOUNG ADULTS BY NOW THEY'VE BEEN EXPOSED TO DEATH GARY STIBEL FOUNDER AND PRINCIPAL OF NEW ENGLAND CONSULTING A MANAGEMENT CONSULTING FIRM IN WESTPORT CONN DOESN'T THINK THE GAP ADS MAKE THE BEST USE OF DEAD CELEBRITIES BUT HE PRAISES THE DIET COKE ADS BECAUSE THEIR USE OF FILM CLIPS MAKES THEM MORE MEMORABLE I'M NOT SURE PEOPLE REMEMBER BOGART IN GAP ADS HE SAYS THEY'RE MORE LIKELY TO REMEMBER HIM FROM THE DIET COKE SPOTS MR STIBEL BELIEVES INTERNATIONAL BUSINESS MACHINES' USE OF CHARLIE CHAPLIN'S LITTLE TRAMP CHARACTER IN ITS PERSONAL COMPUTER COMMERCIALS THAT BEGAN RUNNING IN 1981 IS THE BEST EXAMPLE OF USING THE DECEASED THE CHARACTER COMPLEMENTED THE PRODUCT AND NEVER TOOK TOP BILLING INSTEAD THE CHARACTER WAS THE MESSENGER AND DIDN'T OVERSHADOW THE PRODUCT BUT IBM DISCONTINUED THE CHAPLIN SPOTS IN 1987 AND REPLACED THEM WITH CHARACTERS FROM THE HIT TELEVISION SERIES MASH THE SHOW HAD GONE OFF THE AIR FOUR YEARS EARLIER BUT WAS STILL POPULAR IN RERUNS ALL THE ACTORS FROM THE SITUATION COMEDY WERE ALIVE THE SPOTS BOMBED GERBER PRODUCTS CO FREMONT MICH AND GREY ADVERTISING NEW YORK HAVE ENDED THEIR RELATIONSHIP IN THE US AFTER THREE YEARS THE AGENCY SAID ANNUAL BILLINGS FROM GERBER'S BABYFOOD LINES ARE ABOUT 10 MILLION ACCORDING TO COMPETITIVE MEDIA REPORTING THE AGENCY ATTRIBUTED THE MUTUAL SPLIT TO POTENTIAL CONFLICTS BETWEEN EXISTING CLIENTS AND THE GERBER'S GRADUATES LINE OF READYTOEAT TODDLER FOOD GERBER HAS PLANS TO EXPAND THE LINE INTO FOOD CATEGORIES THAT COMPETE WITH BRANDS FROM OTHER GREY CLIENTS EXECUTIVES CLOSE TO THE SITUATION SAID GERBER DOESN'T HAVE IMMEDIATE PLANS TO HIRE A NEW FULLTIME AD AGENCY AND HAS ALREADY ASSIGNED ONE PROJECT TO A SMALL SHOP A GERBER SPOKESMAN COULDN'T BE REACHED FOR A COMMENT GREY WILL RETAIN THE GERBER ACCOUNT IN LATIN AMERICA AND THE AGENCY'S PUBLIC AFFAIRS AND LOBBYING UNIT APCO ALSO WILL CONTINUE TO WORK FOR GERBER THE LOSS FOLLOWS BY TWO DAYS GREY'S LOSS OF THE BIG QUAKER STATE MOTOROIL AD ACCOUNT WHICH LEFT THE AGENCY FOR CHIAT/DAY ACCOUNT MUSICLAND STORES CORP MINNEAPOLIS TAPPED WB DONER & CO DETROIT TO HANDLE THE CREATIVE PORTION OF ITS NATIONAL TV ADVERTISING FOR THE MUSICLAND AND SAM GOODY MUSIC CHAINS A NEW ACCOUNT THE CLIENT WILL CONTINUE TO HANDLE MEDIA PLANNING AND BUYING BILLINGS ARE ESTIMATED AT ABOUT 10 MILLION PEPSICO'S KENTUCKY FRIED CHICKEN TAPPED MINGO GROUP NEW YORK FOR ADVERTISING TO THE AFRICANAMERICAN MARKET AN ASSIGNMENT PREVIOUSLY AT EQUINOX GROUP CHICAGO ACQUISITION FALLONMCELLIGOTT MINNEAPOLIS SAID IT HAS ACQUIRED JOE DUFFY DESIGN INC A MINNEAPOLIS PACKAGEDESIGN SHOP TERMS WEREN'T DISCLOSED MR DUFFY WILL HAVE A SEAT ON THE AGENCY'S BOARD AN AGENCY SPOKESWOMAN SAID FALLON AND DUFFY SHARE AN IMPORTANT CLIENT COCACOLA CO FOR WHICH THEY WORK ON SPECIAL PROJECTS WHO'S NEWS SAATCHI & SAATCHI'S CME KHBB NAMED HOWARD LISZT TO THE POST OF PRESIDENT AND CHIEF OPERATING OFFICER A NEW POSITION PREVIOUSLY MR LISZT 47 YEARS OLD OVERSAW THE AGENCY'S CHICAGO AND MINNEAPOLIS OFFICES KETCHUM ADVERTISING A UNIT OF KETCHUM COMMUNICATIONS NAMED JAMES FICCO III 39YEAROLD EXECUTIVE VICE PRESIDENT TO THE POST OF PRESIDENT OF THE PITTSBURGH OFFICE SUCCEEDING JAN HEDQUIST WHO WAS NAMED VICE CHAIRMAN IN CHARGE OF AGENCY OPERATIONS AT THE PARENT COMPANY 9401070103 940107 QUARTERLY MUTUAL FUNDS REVIEW NOLOAD BUYERS LOAD UP THROUGH DISCOUNT BROKERS BY DEBORAH LOHSE STAFF REPORTER OF THE WALL STREET JOURNAL MORE AND MORE PEOPLE ARE BUYING MUTUAL FUNDS THROUGH DISCOUNT BROKERAGE FIRMS ATTRACTED BY CONVENIENCE AND THE FACT THAT THE BROKERS ARE ELIMINATING THEIR USUAL TRANSACTION FEES FOR A GROWING NUMBER OF FUNDS DISCOUNTERS SUCH AS CHARLES SCHWAB & CO FIDELITY DISCOUNT BROKERAGE AND JACK WHITE & CO OFFER A SELECTION OF SOME 200 FUNDS THAT CAN BE BOUGHT WITHOUT THE FEES THAT NORMALLY GET TACKED ON WHEN EVEN NOLOAD FUNDS ARE BOUGHT THROUGH A BROKER THE SAVINGS CAN BE ANYWHERE FROM 20 TO SEVERAL HUNDRED DOLLARS PER TRANSACTION DEPENDING ON THE BROKERAGE FIRM AND THE SIZE OF THE INVESTMENT MANY FINANCIAL ADVISERS SAY THE NOTRANSACTIONFEE SERVICES ARE A TREMENDOUS BOON FOR INVESTORS BUT THEY CAUTION THAT INVESTORS SHOULDN'T NECESSARILY LIMIT THEMSELVES TO FUNDS THAT ARE BEING SOLD THAT WAY ESPECIALLY IF THAT MEANS FORGOING DIVERSITY OR TOPQUALITY TOPPERFORMING FUNDS FROM GROUPS NOT ON A PARTICULAR BROKERAGE FIRM'S NOFEE LIST FOR YEARS DISCOUNT BROKERS SUCH AS SCHWAB HAVE BEEN A QUICK ONESTOP MARKETPLACE FOR INVESTORS TO BUY SHARES OF ANY OF A THOUSAND OR MORE MUTUAL FUNDS FROM HUNDREDS OF THE MAJOR MUTUALFUND COMPANIES FOR THE MOST PART THE FUNDS THEY SELL ARE NOLOAD FUNDS OR FUNDS WITH LOW UPFRONT SALES CHARGES THIS SERVICE ENABLES INVESTORS TO CONVENIENTLY ASSEMBLE A DIVERSIFIED PORTFOLIO OF FUNDS AND MAKES IT EASY TO SWITCH FROM ONE FUND COMPANY'S OFFERINGS TO ANOTHER'S WITHIN A SINGLE DAY IT CAN TAKE A WEEK OR LONGER TO SWITCH AMONG FUND COMPANIES IF AN INVESTOR BUYS DIRECTLY FROM FUND COMPANIES DISCOUNT BROKERAGE CUSTOMERS ALSO GET ONE CONSOLIDATED STATEMENT OUTLINING THE ACTIVITY IN EACH OF THEIR FUNDS RATHER THAN MULTIPLE MAILINGS FROM SEVERAL FUND GROUPS MORE RECENTLY SEVERAL DISCOUNTERS HAVE SWEETENED THE DEAL WITH NOTRANSACTIONFEE FUNDS IN LIEU OF CHARGING INVESTORS TO BUY AND SELL THE BROKERAGES CHARGE THE FUND GROUPS TO HAVE THEIR FUNDS ON A NOTRANSACTIONFEE LIST HORDES OF INVESTORS HAVE ENTHUSIASTICALLY EMBRACED THE CONCEPT IN ONLY 16 MONTHS SCHWAB HAS SEEN A WHOPPING 8 BILLION IN PURCHASES THROUGH ITS ONESOURCE PROGRAM WITH 250 MILLION MORE COMING IN EVERY WEEK ON AVERAGE MORE COMPANIES ARE SCRAMBLING TO MEET THE NEWFOUND DEMAND BULL & BEAR SECURITIES A NEW YORK DISCOUNT BROKER CURRENTLY OFFERS ONLY EIGHT BULL & BEAR FUNDS WITHOUT TRANSACTION FEES BUT BEGINNING EARLY THIS YEAR IT PLANS TO OFFER 75 NOTRANSACTIONFEE FUNDS FROM FIVE SEPARATE FUND GROUPS SAYS MARK WINMILL THE COMPANY'S PRESIDENT BUT DESPITE THE POPULARITY OF NOFEE INVESTING SOME ADVISERS SAY IT WOULD BE A MISTAKE TO OVERLOOK OTHER FUNDS SIMPLY BECAUSE BUYERS HAVE TO PAY A FEE TO BUY INTO THEM THROUGH THEIR FAVORITE DISCOUNTER PAUL SOLLI MANAGING DIRECTOR OF FINANCIAL DESIGN AN INVESTMENTADVISORY FIRM IN LARKSPUR CALIF SAYS INVESTORS SHOULD STILL SEEK OUT FUNDS THAT HAVE A LOW OVERALL EXPENSE RATIO WHILE A DISCOUNT BROKER'S TRANSACTION FEE IS A ONETIME HIT FOR A BUYANDHOLD INVESTOR ANNUAL MANAGEMENT FEES AND OTHER COSTS REFLECTED IN A FUND'S EXPENSE RATIO CAN DIMINISH YOUR OVERALL RETURN YEAR AFTER YEAR HE NOTES THAT TWO QUALITY FUND FAMILIES T ROWE PRICE ASSOCIATES AND VANGUARD GROUP HAVE UNUSUALLY LOW EXPENSE RATIOS ALTHOUGH THEY AREN'T OFFERED ON DISCOUNTERS' NOTRANSACTIONFEE MENUS THE FEEFREE PHENOMENON MAY TAKE ATTENTION AWAY FROM LOWEXPENSERATIO FUNDS MR SOLLI SAYS FOR INVESTORS LOOKING TO INVEST IN THE NEWLY FEEFREE FUNDS IT MIGHT PAY TO LOOK AT THE MENU AT MORE THAN ONE DISCOUNTER SOME FUNDS MAY BE SOLD WITHOUT TRANSACTION FEES AT ONE FIRM BUT NOT ANOTHER JACK WHITE IN SAN DIEGO OFFERS PIMCO FUNDS WHICH ARE NORMALLY SOLD ONLY TO LARGE INSTITUTIONAL INVESTORS FOR A 5000 MINIMUM INVESTMENT INDIVIDUALS CAN BUY THE PIMCO FUNDS OFFERED BY JACK WHITE WITHOUT TRADING FEES SCHWAB CUSTOMERS CAN ALSO BUY OR SELL PIMCO FUND SHARES BUT THEY HAVE TO PAY SCHWAB'S USUAL MUTUALFUND TRANSACTION FEES SIMILARLY ONLY FIDELITY'S DISCOUNT BROKERAGE FIRM SELLS FIDELITY FUNDS WITHOUT TRANSACTION FEES SOME DISCOUNT BROKERAGE FIRMS ALSO LIMIT INANDOUT TRADING INVESTORS WHO BUY FUNDS THROUGH FIDELITY'S FUNDSNETWORK FOR INSTANCE ARE ALLOWED TO SELL FUND SHARES THEY HAVE HELD LESS THAN SIX MONTHS ONLY FOUR TIMES EVERY 12 MONTHS BEYOND THAT LIMIT CUSTOMERS MUST PAY TRANSACTION FEES AS A RESULT ACTIVE FUND TRADERS MAY FIND THAT THE NOFEE SERVICE ISN'T A HUGE SAVINGS SOME BROKERAGES ALSO CHARGE TRANSACTION FEES IF THE AMOUNT AN INVESTOR REDEEMS IS TOO SMALL AT MURIEL SIEBERT & CO AND JACK WHITE CUSTOMERS WHO REDEEM SHARES VALUED AT LESS THAN 5000 PAY A TRANSACTION FEE EVEN ON NOTRANSACTIONFEE FUNDS EVEN IF INVESTORS HAVE TO PAY TRANSACTION FEES MANY INVESTMENT ADVISERS SAY DISCOUNT BROKERS ARE HARD TO BEAT NOT LEAST FOR THE CONSOLIDATED STATEMENTS THEY PROVIDE WITHOUT THIS FEATURE INVESTORS ARE OFTEN OVERWHELMED WITH PAPERWORK MR SOLLI SAYS AND IN SOME CASES INVESTORS HAVE ACCESS TO FUNDS THROUGH DISCOUNT BROKERS THAT THEY PROBABLY COULDN'T GET INTO ELSEWHERE AT SCHWAB INVESTORS CAN GET INTO THREE FUNDS FROM MUTUAL SERIES FUNDS THAT ARE GENERALLY CLOSED TO NEW INVESTORS AND FOR A 2500 MINIMUM INVESTMENT A SCHWAB INVESTOR COULD BUY SHARES OF ONE OF SIX MAS FUNDS THAT ARE NORMALLY AVAILABLE ONLY TO INSTITUTIONAL INVESTORS WITH A MILLION DOLLARS OR SO TO INVEST DISCOUNT BROKERAGE CUSTOMERS CAN ALSO BORROW AGAINST THEIR MUTUAL FUNDS THROUGH MARGIN LOANS WITH SUCH LOANS YOU CAN GENERALLY BORROW AS MUCH AS HALF OF YOUR ACCOUNT BALANCE AT RATES THAT ARE CURRENTLY AROUND 6675 INVESTORS CAN BORROW TO BUY ADDITIONAL SHARES OF THE FUND OR OTHER SECURITIES OR TO FREE UP LOWCOST CASH GERALD PERRITT EDITOR AND PUBLISHER OF THE MUTUAL FUND LETTER IN CHICAGO SAYS MOST INVESTORS SHOULD BE ABLE TO BUILD A SOLID PORTFOLIO THROUGH DISCOUNT BROKERS CAN YOU GET EVERY FUND NO BUT CAN YOU GET ENOUGH DIVERSITY THAT YOU CAN PUT TOGETHER A PORTFOLIO OF BETTERPERFORMING FUNDS YES 9401070102 940107 REVIEW & OUTLOOK EDITORIAL ASIDES ARIZONA'S CHOICE ARIZONA IS THE LATEST BATTLEGROUND OVER SCHOOL CHOICE CHILDREN ARE ACTUALLY BEING SENT HOME WITH FLYERS FROM THEIR TEACHERS OPPOSING THE ADDITION OF VOUCHERS TO AN EDUCATION REFORM BILL NOW BEFORE THE LEGISLATURE NONETHELESS GOVERNOR FIFE SYMINGTON AND LEGISLATIVE LEADERS BOTH FAVOR VOUCHERS THEY NOTE 2000 PARENTS OF SPECIALED KIDS ALREADY GET STATE VOUCHERS FOR USE IN PRIVATE SCHOOLS BUT TEACHERS' UNIONS VOW TO OPPOSE ANY LEGISLATOR WHO WANTS TO EXPAND THE PROGRAM TO OTHER PARENTS BEV HERMON CHAIRMAN OF THE SENATE EDUCATION COMMITTEE TOLD HER COLLEAGUES THIS WEEK SHE PHILOSOPHICALLY SUPPORTS VOUCHERS BUT WORRIES THEIR INCLUSION MIGHT DOOM THE ENTIRE EDUCATION REFORM BILL BUT VOUCHERS HAVE BECOME THE LITMUS TEST OF WHETHER AN EDUCATION BILL IS TRUE REFORM SEVERAL SENATORS PROMISE TO VOTE AGAINST THE BILL IF IT DOESN'T INCLUDE VOUCHERS TAXPAYERS ARE TIRED OF REFORM BILLS THAT DON'T HOLD SCHOOLS ACCOUNTABLE ADDING A MODEST VOUCHER PROGRAM IS THE CLEAREST WAY ANY LEGISLATURE CAN SIGNAL SCHOOL BUREAUCRATS THEY'RE PUTTING AN END TO SPENDINGASUSUAL 9401070101 940107 TECHNOLOGY PURITAN TO CLOSE PLANT TAKE OVERHAUL CHARGE AFTER AN FDA DECREE OVERLAND PARK KAN PURITANBENNETT CORP AFTER REACHING A CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION THAT TEMPORARILY STOPS ITS SALE OF PORTABLE VENTILATORS AND BLOODGAS MONITORING EQUIPMENT IN THE US SAID IT WILL CLOSE A BOULDER COLO PLANT THE COMPANY ALSO WILL TAKE A RESTRUCTURING CHARGE IN THE CURRENT FISCAL FOURTH QUARTER THE FDA REQUIRED THE TEMPORARY HALT OF SHIPMENTS UNTIL IT CAN DETERMINE IF PURITANBENNETT IS MEETING FEDERAL MEDICALDEVICE MANUFACTURING REGULATIONS AT CERTAIN PRODUCTION PLANTS PURITANBENNETT ALSO SAID IT PLANS TO SUBSTANTIALLY CURTAIL THE PRODUCTION OF BLOODGAS MONITORING DEVICES SALES OF WHICH HAVE BEEN DISAPPOINTING EMPLOYMENT IN THE DIVISION WILL BE CUT AND THE COMPANY WILL SEEK A PARTNER IN THAT BUSINESS THE COMPANY ONCE HAD HIGH HOPES FOR THE RELATIVELY NEW BUSINESS OF MAKING THE GASMONITORING DEVICES BUT ITS SALES IN THIS FIELD FOR THE YEAR ENDING THIS MONTH ONLY WILL BE BETWEEN 2 MILLION AND 5 MILLION ANALYSTS ESTIMATED SEPARATELY THE FDA CONCLUDED THAT A PURITANBENNETT HUMIDIFIER AND VENTILATOR PROBABLY WEREN'T TO BLAME FOR A FATAL FIRE SEPT 1 AT MAIMONIDES MEDICAL CENTER IN NEW YORK THE AGENCY HAD SAID THE FIRE WAS BELIEVED TO HAVE ORIGINATED IN ONE OF THE DEVICES 9401070100 940107 VISIONING' MISSIONS BECOMES ITS OWN MISSION BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL EVERY MARRIOTT HOTEL BOASTS A DIFFERENT ONE SIGNED BY THE BELLHOPS CLERKS AND MAIDS AVIS INC HAS 150 ALL HANGING ON A WALL AT CORPORATE HEADQUARTERS HUNDREDS OF WORKERS AT A HOUSTON METALWORKING COMPANY CARRY CREDITCARD SIZED VERSIONS IN THEIR SHIRTPOCKETS AND WALLETS THEY'RE MISSION STATEMENTS AND THEY'RE FAST BECOMING THE LATEST MANAGEMENT MANIA FACING TOUGHER COMPETITION AND TIGHTER BUDGETS MORE COMPANIES CITIES SCHOOLS AND EVEN INDIVIDUALS ARE TAKING STOCK OF WHO THEY ARE WHAT THEY DO AND HOW THEY PLAN TO DO IT BETTER THEN THEY'RE WRITING IT ALL DOWN THE RESULT A PROLIFERATION OF MISSIONS VISIONS VALUES AND THE LIKE EMBLAZONED ON ANNUAL REPORTS FACTORY WALLS AND COMPANIES HOPE THE PSYCHES OF THEIR WORKERS IT'S THE NEW GROUPTHINK IF WE STATE OUR GOALS WE'RE MORE LIKELY TO MEET THEM IT'S SORT OF LIKE THE TEN COMMANDMENTS SAYS ASHLEY E LEBLANC DIRECTOR OF NORTHERN PENOBSCOT TECH A VOCATIONAL HIGH SCHOOL IN LINCOLN MAINE WHICH RECENTLY DRAFTED MISSION AND VISION STATEMENTS MORE THAN 50 OF BIG COMPANIES HAVE MISSION STATEMENTS NOW TWICE AS MANY AS FIVE YEARS AGO SAYS MARY RABAUT A VICE PRESIDENT WITH GEMINI CONSULTING MORRISTOWN NJ CAVAS M GOBHAI A CAMBRIDGE MASS CONSULTANT SAYS COMPANIES ARE CLAMORING TO HIRE HIM AT 3000 A DAY TO HELP DIVINE THEIR VISIONS SUCH WORK NOW MAKES UP HALF HIS BUSINESS UP FROM 10 FIVE YEARS AGO LESS COSTLY APPROACHES ARE ALSO BOOMING JAN COOK REICHER A HOBOKEN NJ SMALLBUSINESS CONSULTANT GOT SO MANY CLIENT INQUIRIES ABOUT VISION STATEMENTS THAT SHE PUT TOGETHER A SIXPAGE GUIDE TO WRITING THEM THE GUIDE SUGGESTS SENTENCES LIKE WE ARE COMMITTED TO PROVIDING UNEQUALED QUALITY SHE SAYS SHE HAS DISTRIBUTED 1500 COPIES IN THE LAST YEAR AT 10 APIECE BUT MANY VISION STATEMENTS ARE UNINSPIRING DESPITE ALL THE EFFORT DEVOTED TO DEVELOPING THEM OFFICIALS AND FACULTY AT STANFORD'S BUSINESS SCHOOL SPENT MORE THAN A YEAR DEBATING THEIR MISSION AND STRATEGY BEFORE UNVEILING THE RESULTS IN NOVEMBER SURPRISE THE SCHOOL'S GOAL IS TO BE THE LEADING ACADEMIC SCHOOL OF MANAGEMENT IN THE WORLD IN TERMS OF ITS IMPACT ON MANAGEMENT THEORY THINKING PRACTICE AND PERFORMANCE BASICALLY THE SCHOOL'S GOAL BEFORE THE MISSION STATEMENT WAS WRITTEN YET ONE MISSION ISN'T ALWAYS ENOUGH BELL ATLANTIC CORP BOASTS A WHOLE PACKAGE DETAILING ITS BUSINESS PURPOSE VISION VALUES GOALS KNOWN AS BLUE CHIPS A FIVESTEP MANAGEMENT BY COMMITMENT PROCESS AND THE BELL ATLANTIC WAY SEVEN BEHAVIORS AND PROCESSES DESIGNED TO PROMPT CHANGES IN THE COMPANY'S CULTURE SOMERSET COUNTY NJ RECENTLY DEVELOPED MORE THAN 50 MISSION STATEMENTS ONE FOR THE COUNTY AND SEPARATE ONES FOR EACH ADMINISTRATIVE DEPARTMENT AND DIVISION BUT BEFORE DOING SO OFFICIALS SURVEYED 1400 COUNTY WORKERS TO GLEAN KEYWORDS AND PHRASES DESCRIBING WHAT THEY DO FOR COUNTY RESIDENTS MARRIOTT INTERNATIONAL INC WENT EVEN FURTHER AFTER DEVELOPING SEPARATE MISSION STATEMENTS FOR THE CORPORATION AND FOR ITS HOTEL DIVISION THE COMPANY IN 1992 ASKED EACH OF SOME 250 HOTELS TO CRAFT MISSION STATEMENTS OF THEIR OWN EACH HOTEL'S TOP MANAGERS WROTE A FIRST DRAFT THEN STAFF MEMBERS REFINED THE STATEMENTS DURING THREE DAYS OF VISIONING EXERCISES SITTING AT ROUND TABLES OF EIGHT OR 10 HOUSEKEEPERS COOKS DESK CLERKS AND OTHERS GRILLED MANAGERS INTERVIEWED CUSTOMERS AND TORE THROUGH THE DRAFTS PLASTERING WALLCHARTS WITH SUGGESTIONS FOR IMPROVEMENTS THOSE EVENTS WERE INCREDIBLY POWERFUL SAYS BOB NICHOLS A SENIOR VICE PRESIDENT FOR MARRIOTT'S HOTEL UNIT AND COSTLY TOO THE COMPANY ASSIGNED 70 PEOPLE TO TRAVEL FULLTIME TO OVERSEE THE MISSION SESSIONS AND IT MOVED STAFF FROM NEARBY HOTELS TO COVER FOR PARTICIPANTS WHEN SESSIONS TOOK PLACE NOT HAVING A MISSION THESE DAYS CAN MEAN TROUBLE IN ONE OF HIS FIRST PUBLIC STATEMENTS AFTER ASSUMING THE HELM AT INTERNATIONAL BUSINESS MACHINES CORP LOUIS V GERSTNER JR MADE HEADLINES AND STIRRED SHAREHOLDER CONCERN WHEN HE SAID THIS PAST SUMMER THAT THE LAST THING IBM NEEDS RIGHT NOW IS A VISION EXPLAINS A COMPANY SPOKESMAN WHAT LOU GERSTNER WAS SAYING WAS THAT A 25 OR 30WORD SENTENCE IS SIMPLISTIC AND NOT REALISTIC AND NOT HIS FIRST PRIORITY BUT SINCE THEN MR GERSTNER HAS DISTRIBUTED TO EMPLOYEES A LIST OF IBM PRINCIPLES CONSISTING OF EIGHT SENTENCES OF EIGHT TO 18 WORDS EACH THE PRINCIPLES PLEDGE A MINIMUM OF BUREAUCRACY AND SENSITIVITY TO STAFF AND OTHERS AND THE SPOKESMAN SAYS MR GERSTNER DOES PLAN TO ARTICULATE AN EXPLICIT VISION FOR THE COMPANY SOMETIME IN 1994 SOME MANAGEMENT EXPERTS SAY THAT MANY ORGANIZATIONS DEVOTE TOO MUCH TIME TO DEVELOPING MISSION STATEMENTS AND NOT ENOUGH TO MEETING THEM A LOT OF COMPANIES SEE THIS AS A QUICK FIX SAYS JAMES C SHAFFER A VICE PRESIDENT WITH CONSULTANTS TOWERS PERRIN THESE ORGANIZATIONS USE VISION AS A PUBLIC RELATIONS TOOL NOT AS SOMETHING TO CHANGE THE FUNDAMENTAL CULTURE MS RABAUT OF GEMINI CONSULTING CITES A COMMON PROBLEM EMPLOYEES WHO ARGUE WITH CUSTOMERS BLATANTLY IGNORING THEIR COMPANY'S MISSION PROCLAMATION THAT THE CUSTOMER IS ALWAYS RIGHT STILL EXPERTS CONTEND THAT COMPANIES CAN BENEFIT FROM A VISION IF IT IS IMPLEMENTED THE RIGHT WAY ONE STUDY SHOWS THAT 18 VISIONARY COMPANIES OUTPERFORMED A CONTROL GROUP IN THE STOCK MARKET BY MORE THAN SIX TO ONE MEASURED OVER THE PERIOD 1926 TO 1990 JERRY PORRAS PROFESSOR OF ORGANIZATIONAL BEHAVIOR AT STANFORD AND THE STUDY'S COAUTHOR SAYS VISIONARY COMPANIES STAND OUT PARTLY BY SETTING AMBITIOUS GOALS COMMUNICATING THEM TO EMPLOYEES AND FOLLOWING WHAT HE TERMS A CORE IDEOLOGY A PURPOSE BEYOND MAKING MONEY FOR INSTANCE HE CITES WALT DISNEY CO'S AIM OF MAKING PEOPLE HAPPY AS CRITICAL TO ITS SUCCESS YOU CAN SIT DOWN AND GENERATE A VISION IN A FEW DAYS BUT THAT ISN'T ENOUGH MR PORRAS SAYS YOU NEED TO ALIGN THE ORGANIZATION TO ACHIEVE IT ORGANIZATIONS MUST ALSO CHANGE THEIR MISSIONS AND VISIONS TO KEEP UP WITH THE TIMES MR PORRAS AND OTHER EXPERTS SAY MARS INC MODIFIED ITS FIVE PRINCIPLES LAST YEAR TO INCORPORATE REFERENCES TO THE CANDY COMPANY'S AMBITIONS ABROAD BELL ATLANTIC PLANS TO MODIFY ITS VISION TO BE THE WORLD'S BEST COMMUNICATIONS AND INFORMATION MANAGEMENT COMPANY TO INCORPORATE ENTERTAINMENT FOLLOWING ITS ACQUISITION OF CABLE GIANT TELECOMMUNICATIONS INC AND JOHNSON & JOHNSON THIS YEAR WILL CONVENE EXECUTIVES AND SURVEY ITS 80000 EMPLOYEES TO SOLICIT POSSIBLE CHANGES FOR ITS 50YEAROLD CREDO A REVIEW THAT TAKES PLACE EVERY FEW YEARS THE LAST CREDO CHANGE CAME IN 1989 WHEN THE COMPANY DECLARED ITS FIRST RESPONSIBILITY NOT JUST TO THE DOCTORS NURSES PATIENTS AND MOTHERS WHO USE ITS PRODUCTS BUT TO FATHERS TOO ANOTHER CHALLENGE IS EXPRESSING A MISSION OR VISION BRIEFLY BOOSTING THE CHANCE THAT EMPLOYEES WILL REMEMBER IT HEWLETTPACKARD CO TRIED THAT LAST YEAR AFTER CONCLUDING THAT ITS DETAILED STATEMENTS OF ORGANIZATIONAL VALUES CORPORATE OBJECTIVES AND STRATEGIES AND PRACTICES WERE NOT IMMEDIATELY SUCCINCT AND QUITE WORDY SAYS JOHN R EATON THE COMPANY'S BUSINESS DEVELOPMENT MANAGER THE SOLUTION A NEW ONELINE PURPOSE STATEMENT JUST 19 WORDS LONG BUT THE COMPANY COULDN'T STOP THERE FOLLOWING THE PURPOSE IS A FIVELINE EXPLANATION HEADLINED WHAT DOES IT ALL MEAN 9401070099 940107 FINANCING BUSINESS GULF CANADA RESOURCES LTD GULF CANADA RESOURCES LTD A CALGARY ALBERTA OIL PRODUCER SAID IT PLANS TO ISSUE 300 MILLION OF SENIOR SUBORDINATED DEBENTURES IN THE US GULF CANADA SAID IT FILED A PRELIMINARY PROSPECTUS SUPPLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND THE ALBERTA SECURITIES COMMISSION FOR THE ISSUE WHICH IT SAID IS TO BE UNDERWITTEN BY SALOMON BROTHERS INC AND MORGAN STANLEY & CO GULF WHICH IS 70OWNED BY CREDITORS OF THE REICHMANN FAMILY'S BANKRUPT OLYMPIA & YORK DEVELOPMENTS LTD SAID IT WILL USE THE PROCEEDS TO PREPAY PART OF ITS SENIOR BANK DEBT DUE IN 1996 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 9401070098 940107 LETTERS TO THE EDITOR A TACTICAL CHANGE IN CULTURE WARS' FOR YEARS OR MAYBE IT JUST SEEMS LIKE YEARS YOUR EDITORIALS HAVE GROUSED ABOUT AMERICA'S CRUMMY ARTISTS THE BLIGHT OF GANGSTA RAP MURPHY BROWN ETC UNDER THE RUBRIC OF SOMETHING YOU'VE BEEN PLEASED TO CALL THE CULTURE WARS YET IN YOUR DEC 16 EDITORIAL CAPTIVE CULTURE YOU SNEER AT GATT NEGOTIATORS WHO FEAR THAT AMERICAN FILMS AND MUSIC INJECT AN ALIEN VIRUS INTO THE PURITY OF EUROPEAN LIFE THIS SUDDEN CONVERSION ON YOUR PART SEEMS STRANGE YOU EVEN CITE AS COUNTERVAILING EVIDENCE OF EUROPE AND AMERICA'S ROBUST COMMON CULTURAL TRADITION THE INFLUENCE OF AMERICAN R&B ON JOHN LENNON WHO GIVEN HIS LIFELONG COMMITMENT TO RADICAL CAUSES IS A STRANGE CHAMPION FOR CONSERVATIVE CULTUREWARRIORS SUCH AS YOURSELVES ALSO IN AN ACCOMPANYING ASIDE TV VIOLENCE YOU SCOFF AT A TASK FORCE'S REQUEST THAT VIOLENCE BE KEPT OFF PRIMETIME TV SUGGESTING THAT A LOT OF PEOPLE WHO BEAT THEIR BRAINS OUT ALL DAY TRADING DERIVATIVES AND SUCH LIKE TO UNWIND FROM 8 PM ONWARD WITH OLD FRIENDS LIKE DIRTY HARRY' THE GODFATHER' OR BRUCE LEE MAY ONE ASSUME FROM THIS THAT IF YOUNG AFRICANAMERICANS WISH TO UNWIND AFTER A LONG DAY WITH OLD FRIENDS SUCH AS SNOOP DOGGY DOGG OR ICET THE NEW POPCULTUREFRIENDLY JOURNAL WILL BE SIMILARLY SUPPORTIVE 9401070097 940107 LETTERS TO THE EDITOR HOT COMMODITIES YOUR DEC 6 PAGEONE ARTICLE RED MERCURY IS HOT ALLEGES THAT RED MERCURY IS USED FOR NUCLEAR PURPOSES IN MY DISCUSSION WITH YOUR REPORTER I MADE THE ANALOGY THAT ETHANOL IS USED IN BRAZIL AS A FUEL BUT CAN ALSO BE USED TO MAKE EXPLOSIVE MATERIALS IN OTHER WORDS THE POTENTIAL TO CONVERT INNOCUOUS MATERIALS INTO DANGEROUS ONES IS A MODERNDAY REALITY THAT THE WORLD MUST FACE ADDITIONALLY COUNTRIES PRODUCING IMPORTING AND EXPORTING SUCH COMMODITIES IMPOSE STRICT REGULATIONS ON THEIR COMMERCE THEREFORE RED MERCURY WHICH IS NOT RADIOACTIVE POSES LESS OF A THREAT THAN MANY OTHER SUBSTANCES SOLD ON THE WORLD MARKET 9401070096 940107 NOTABLE & QUOTABLE IN THE DEC 27JAN 3 NEW YORK OBSERVER COLUMNIST RICHARD BROOKHISER COMMENTS ON THE LONG ISLAND RAIL ROAD'S RECENT MASS MURDER IF EVER THERE WAS A HATE CRIMINAL COLIN FERGUSON IS IT HE HATED WHITES ASIANS AND UNCLE TOM NEGROES WHO DID THEIR BIDDING HIS WIFE DIVORCED HIM BECAUSE OF THE VIRULENCE OF HIS RACIAL VIEWS HIS LANDLORD WAS ABOUT TO EVICT HIM FOR THE SAME REASON HE HAD BEEN ARRESTED BY THE TRANSIT POLICE AS IT HAPPENS FOR A RACIAL TIFF AFTER HIS MURDEROUS DEED WAS DONE HIS POCKETS WERE FOUND STUFFED WITH RACIST RANTINGS THE USUAL WATCHDOGS OF HATE CRIME HAVE FALLEN STRANGELY SILENT IN THIS CASE HOWEVER FOR THE OBVIOUS REASON THAT COLIN FERGUSON'S HATRED WAS NOT THE KIND OF HATRED THEY EXPECTED TO BE PUNISHING THE CATEGORY OF THE HATE CRIME WAS MEANT TO DRAW ATTENTION TO THE LEVEL OF WHITE RACISM IN AMERICA 9401070095 940107 WORLD STOCK MARKETS HONG KONG STOCKS PLUNGE SOME SEE FURTHER DECLINES BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL THE HONG KONG STOCK MARKET ONE OF THE WORLD'S HIGHEST FLYING PLUNGED 65 THURSDAY AND LEFT MANY INVESTORS WONDERING WHETHER THE DECLINE SIGNALED THE END OF A LONG BULL RUN THAT HAS BEEN FUELED BY CHINA'S BOOMING ECONOMY SEVERAL MONEY MANAGERS FORECAST FURTHER DECLINES ADDING THAT IT WOULD TAKE AN EXTENDED RETREAT TO CONVINCE THEM TO BUY MORE HONG KONG STOCKS AND EVEN THOSE WHO FELT PRICES WILL RECOVER QUICKLY WARNED THAT INVESTORS SHOULD READ THURSDAY'S EVENTS AS AN OMEN THAT THE EASY RIDE UPWARD IN HONG KONG SHARES IS OVER THE BENCHMARK HANG SENG INDEX FELL 79343 POINTS TO 1137450 FROM 1216793 ON WEDNESDAY REGISTERING ITS BIGGEST SINGLEDAY POINT DROP SINCE THE OCTOBER 1987 GLOBAL STOCKMARKET CRASH WHAT WE SAW IN HONG KONG TODAY WAS INEVITABLE GIVEN THE PACE AND EXTENT OF THE RECENT RISE IN THE MARKET SAID HEATHER MANNERS A DIRECTOR AT HENDERSON INVESTMENT MANAGEMENT IN LONDON REGARDED AS THE BEST WAY TO PLAY CHINA'S FAST ECONOMIC GROWTH THE HONG KONG STOCK MARKET SOARED 116 LAST YEAR 30 IN DECEMBER ALONE FERMIN DA COSTA GOMEZ A PORTFOLIO MANAGER AT PACIFIC ASSET MANAGEMENT NV IN AMSTERDAM COMPARED THE MARKET TO A JET FIGHTER THAT KEPT GOING STRAIGHT UP UNTIL IT STALLED AND THEN BEGAN TO FALL HE SAID HE WOULDN'T BE SURPRISED IF THE HONG KONG STOCK MARKET FELL ANOTHER 25 NOTING THAT THE BRITISHCHINESE CONFLICT OVER INCREASED DEMOCRACY FOR HONG KONG'S RESIDENTS REMAINS UNRESOLVED MR DA COSTA GOMEZ SAID THERE IS A DEFINITE RISK FACTOR ASSIGNED TO HONG KONG WHICH DOESN'T JUSTIFY IT TRADING AT CURRENT LEVELS IT NEEDS TO TAKE A BREATHER MONEY MANAGERS AND BROKERS HAD MANY EXPLANATIONS FOR THE PLUNGE ALTHOUGH MOST WERE SHOCKED BY ITS SHARPNESS BETWEEN CHRISTMAS AND THE NEW YEAR THE FLOOD OF MONEY COMING IN FROM JAPANESE INVESTORS TURNED INTO A TORRENT SAID WILLIAM MURRAY HEAD OF SOUTHEAST ASIAN EQUITY SALES AT BARING SECURITIES LTD IN LONDON THAT MONEY HE ADDED HELPED DRIVE THE MARKET UP 6 AT ONE POINT ON THE FIRST DAY OF TRADING IN 1994 BUT HE SAID THAT IN THE LAST 24 HOURS IT APPEARS THIS BUYING HAS RUN OUT OF STEAM JAPANESE INVESTORS WEREN'T THE ONLY ONES TO CHANGE THEIR MINDS COMING OFF EARLY 1994 STRATEGY MEETINGS EUROPEAN FUND MANAGERS DECIDED THE MARKET WAS TOO PRICEY FOR COMFORT AND THAT THEY WERE NO LONGER WILLING TO COMMIT NEW MONEY SAID MR MURRAY CONTRIBUTING TO THE CUTANDRUN MOOD WERE JAPAN'S NOMURA SECURITIES CO WHICH REDUCED THE HONG KONG MARKET'S WEIGHTING IN MODEL PORTFOLIOS MERRILL LYNCH & CO AND MORGAN STANLEY & CO MADE SIMILAR MOVES LAST FALL MR MURRAY SAID HONG KONG SHARES WERE ALSO HURT BY UNCONFIRMED ACCOUNTS OF SOCIAL UNREST IN CHINA AND REPORTS SUGGESTING THAT CHINA WAS IMPOSING TAX MEASURES THAT WOULD AFFECT THE INTERESTS OF HONG KONG PROPERTY INVESTORS IN CHINA MR DA COSTA GOMEZ OF PACIFIC ASSET MANAGEMENT SAID THAT ANOTHER IMPORTANT FACTOR WAS A DECISION BY HONG KONG BANKS THURSDAY TO REDUCE THE AMOUNT THEY WOULD LEND FOR PURCHASERS OF RESIDENTIAL PROPERTY TO 60 OF THE SALE PRICE FROM 70 THE PROPERTY MARKET IS THE MOST IMPORTANT SECTOR IN HONG KONG HE SAID IF THE PROPERTY SECTOR COUGHS THE MARKET AS A WHOLE CATCHES A COLD WHATEVER THE REASONS MS MANNERS OF HENDERSON SAID IN HONG KONG THERE'S A LEMMING INSTINCT IF THE MARKET'S DUE FOR A CORRECTION AND STARTS FALLING PEOPLE FIND THE EXCUSES TO JUSTIFY THEIR SALES MANY MONEY MANAGERS PREDICTED THAT HONG KONG STOCKS HAVE STILL FURTHER TO FALL WE'VE BEEN CUTTING BACK IN HONG KONG IT ROSE TOO FAR TOO FAST SAID THOMAS TULL A PRINCIPAL AT GULFSTREAM GLOBAL INVESTORS IN DALLAS HE SAID THAT AT CURRENT PRICE LEVELS THE BRITISH COLONY'S SHARES WERE SUSCEPTIBLE TO ANY PROBLEM WITH CHINA'S MOSTFAVOREDNATION TRADING STATUS ANY PROBLEM WITH INFLATION IN CHINA ANY INDICATION THAT CHINESE EXPORTS CAN BE HURT IN ANY WAY THAT WOULD IMPLY A HICCUP EFFECT ON HONG KONG AND PRECIPITATE A DRAG ON PRIVATE CONSUMPTION THE MARKET WOULD HAVE TO FALL TO 9000 BEFORE WE WOULD BEGIN THINKING ABOUT PUTTING MONEY BACK INTO THE HONG KONG STOCK MARKET SAID MR TULL MORE SANGUINE THAN OTHERS MR MURRAY OF BARING SECURITIES PREDICTED THE HANG SENG INDEX COULD FALL TO 10500 AT THAT LEVEL THE HONG KONG STOCK MARKET WOULD BE SELLING AT 145 TIMES 1994 EARNINGS WHICH PUTS IT BACK INTO THE VALUE BRACKETS THAT MOST OF OUR CLIENTS WOULD FEEL MORE COMFORTABLE WITH HE SAID MR MURRAY SAID HIS FIRM HADN'T CHANGED ITS FORECAST OF 14500 FOR THE HANG SENG INDEX WHICH WAS MADE EARLY IN DECEMBER WHEN THE INDEX STOOD AT ABOUT 9300 THAT WOULD MEAN A 27 RISE ABOVE CURRENT LEVELS LONDON SHARES CHALKED UP STRONG GAINS YESTERDAY FINISHING NEAR THE DAY'S HIGHS ON OPTIMISM ABOUT THE ECONOMY FRANKFURT STOCKS CONTINUED TO CONSOLIDATE THOUGH THE MARKET HAD LITTLE REACTION WHEN THE GERMAN BUNDESBANK THE CENTRAL BANK LEFT ITS KEY INTEREST RATES UNCHANGED TOKYO STOCKS ADVANCED HELPED BY ARBITRAGE BUYING AND CONTINUED STRENGTH FOR EXPORTERS' SHARES PROMPTED BY THE YEN'S WEAKENING AGAINST THE DOLLAR WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11165 DOWN 009 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS AIRFREIGHT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15053 UP 273 OR 185 WITH PITTSTON SERVICES OF THE US RISING 37 IN ITS LOCAL CURRENCY CASINO STOCKS TRAILED AT 22798 DOWN 950 OR 4 WITH GENTING OF MALAYSIA SLIDING 11 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 238 POINTS TO 34030 NEAR THE INTRADAY HIGH OF 34077 THE FT 30STOCK INDEX RALLIED 343 POINTS OR 14 TO 25805 VOLUME WAS 103 BILLION SHARES COMPARED WITH 908 MILLION SHARES A DAY EARLIER PRICES OPENED SHARPLY LOWER WITH THE FT 100 DROPPING 239 POINTS TO THE SESSION'S LOW IN REACTION TO THE HONG KONG MARKET'S PLUNGE BUT LONDON'S DESCENT WAS QUICKLY REVERSED FOLLOWING A RECOVERY IN THE STOCKINDEXFUTURES MARKET AND HEALTHY BUYING BY BRITISH AND FOREIGN INSTITUTIONAL INVESTORS THE MARKET ALSO GATHERED STRENGTH FROM OPTIMISM ABOUT FURTHER CUTS IN BRITISH BASELENDING RATES A RESILIENT EARLY PERFORMANCE ON WALL STREET AFTER US BONDMARKET DECLINES AND SPECULATION ABOUT BRITISH INSURANCESECTOR TAKEOVERS IN FRANKFURT THOUGH GERMANY'S RATE MAINTENANCE HAD LITTLE EFFECT THE DAX 30SHARE INDEX DROPPED 1319 POINTS TO 222022 AFTER LOSING 20 POINTS A DAY EARLIER THIS WEEK'S LOSS IS 21 THE MARKET DECLINED ON PROFITTAKING LINKED TO EXPECTATIONS OF FURTHER PRICE DROPS IN PARIS SHARES CLIMBED 11 AS TRADERS SHRUGGED OFF THE BUNDESBANK'S DECISION ON RATES AND INSTITUTIONAL INVESTORS LED A RALLY THE GAINS WERE HELPED BY A POSITIVE US REPORT ON EMPLOYMENT FOLLOWING TWO DAYS OF PROFITTAKING BARGAIN HUNTERS MOVED IN AMID HOPES FOR LOWER EUROPEAN INTEREST RATES INDEED THE BELGIAN AND DANISH CENTRAL BANKS CUT KEY RATES YESTERDAY IN BRUSSELS STOCKS ROSE TO ANOTHER RECORD THE BELGIAN CENTRAL BANK'S MONEYMARKET RATE CUT CAME AFTER TRADING ENDED BUT HAD BEEN WIDELY ANTICIPATED BY THE BOND AND EQUITIES MARKETS HELPING TO BOOST MOST ISSUES IN ZURICH SHARES ROSE IN ACTIVE TRADING FOCUSED ON BANKING CHEMICAL AND FOOD ISSUES FOREIGN INVESTORS ESPECIALLY FROM GERMANY SNAPPED UP SHARES AND WERE JOINED BY SWISS INSTITUTIONAL INVESTORS BROADENING THE GAINS IN MEXICO CITY THE IPC INDEX CLIMBED 1 TO YET ANOTHER RECORD LED BY FOREIGN BUYERS THE MARKET WAS ENCOURAGED WHEN A PEASANT UPRISING TURNED DORMANT WHICH COULD SPUR GOVERNMENT SPENDING IN POOR AREAS PRIOR TO THE AUGUST PRESIDENTIAL ELECTIONS BOOSTING THE ECONOMY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 41374 POINTS WEDNESDAY ROSE 9851 TO 1788199 ON FRIDAY THE NIKKEI INDEX ROSE 6240 POINTS TO CLOSE THE MORNING SESSION AT 1794439 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP FROM 2906 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 626422 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 1688 POINTS WEDNESDAY ROSE 642 TO 146927 THE NIKKEI COULDN'T OVERCOME SELLING PRESSURE ABOVE 18000 WHICH IT TOPPED FOR THE FIRST TIME SINCE DEC 20 AND EXPORTER ISSUES WERE KNOCKED BACK ON LATE PROFITTAKING AFTER THE DOLLAR RETREATED IN CURRENCY DEALINGS IN SYDNEY AFTER LANGUISHING IN THE RED FOR MUCH OF THE SESSION SHARE PRICES EDGED UP TO ANOTHER SIXYEAR HIGH FOLLOWING A RALLY IN THE STOCKINDEX MARCH FUTURES CONTRACT OVERSEAS BUYERS CONTINUED TO CONTRIBUTE TO THE MARKET'S RISE IN SINGAPORE STOCKS SANK 18 AFTER DROPPING 16 WEDNESDAY BLUE CHIPS AND FOREIGNHELD SHARES LED LOSERS WITH SOME ISSUES GIVING UP MORE THAN 10 ON SOME PANIC SELLING AMID CONCERNS ABOUT ANY GOVERNMENT REACTION TO AN OVERHEATED MARKET THE BROAD DECLINE WAS BLAMED ON DROPS IN MALAYSIAN STOCKS IN KUALA LUMPUR STOCKS PLUNGED 5 ON PROFITTAKING AFTER A RECENT RALLY IN MANILA EQUITIES JUMPED 19 HELPED BY BARGAINHUNTING AFTER THE MARKET'S 23 SKID A DAY EARLIER IN BANGKOK STOCKS SLUMPED 24 IN ACTIVE CHOPPY TRADING MARKING THE SECOND CONSECUTIVE DROP FOLLOWING A STREAK OF EIGHT RECORD HIGHS IN A ROW THAT ENDED TUESDAY 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 9401070094 940107 QUARTERLY MUTUAL FUNDS REVIEW ECONOMY'S STRENGTH WILL TUG AT BOND FUNDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL A REVIVING ECONOMY DICTATED THE FOURTHQUARTER BONDMARKET RANKINGS THE FIRST QUARTER PROMISES MORE OF THE SAME HIGHYIELD JUNKBOND FUNDS ARE LIKELY TO OUTPERFORM MOST OTHER BOND SECTORS ONCE AGAIN THIS QUARTER BUT PROBABLY WITH LOWER TOTAL RETURNS THAN IN THE RECENT PAST RETURNS MAY REMAIN UNDER PRESSURE FOR LONGTERM US TREASURY BONDS ANALYSTS HAVE HIGH HOPES FOR BONDS FROM FOREIGN NATIONS ESPECIALLY DEVELOPING NATIONS A PARTICULARLY RISKY BUT REWARDING SECTOR SO FAR THERE WILL BE A GREAT EQUALIZATION OF TOTAL RETURNS IN 1994 SAYS IAN A MACKINNON HEAD OF FIXEDINCOME INVESTING AT VANGUARD GROUP JUNKBOND FUNDS WHICH BOOKED RETURNS OF 475 IN THE FOURTH QUARTER ACCORDING TO PRELIMINARY DATA FROM LIPPER ANALYTICAL SERVICES INC ARE LIKELY TO DO WELL AGAIN BECAUSE THEY BEHAVE A LOT LIKE STOCKS THEY WILL BENEFIT FROM IMPROVEMENT IN THE ECONOMY SAYS MR MACKINNON IT WILL SPELL GENERALIZED RELIEF FOR HIGHYIELD CREDITS ALTHOUGH SOME MAY STUMBLE HE ADDS HE LIKES JUNK BONDS FROM INDUSTRIAL BANKING OR OTHER FINANCIAL CONCERNS EVEN IF INTEREST RATES RISE MODERATELY THIS YEAR JUNK BONDS WOULD STILL BE A GOOD BET SAYS MR MACKINNON THAT'S BECAUSE THE HIGHYIELD SECTOR CONSISTS MAINLY OF INTERMEDIATETERM BONDS AND WILL HAVE SOME PROTECTION AGAINST MODERATELY RISING RATES MR MACKINNON SAYS THAT THE ENVIRONMENT WILL BE GOOD FOR FUND MANAGERS INTERESTED IN BOOSTING THEIR RETURNS BY BUYING LOWERGRADE CORPORATE JUNK THE JUNKBOND MARKET WILL CONTINUE TO BE ATTRACTIVE SAYS GARY COBURN HEAD OF FIXEDINCOME INVESTMENTS AT PUTNAM INVESTMENTS BUT YOU PROBABLY WON'T SEE THE DOUBLEDIGIT RETURNS THAT YOU DID IN 1993 JUNKBOND FUNDS HAD TOTAL RETURNS OF 1950 IN 1993 ACCORDING TO LIPPER TOTAL RETURNS COMBINE THE EFFECT OF PRICE CHANGES AND INCOME THERE'S NO SIGN OF RECESSION AND THAT'S TYPICALLY THE TIME WHEN HIGHYIELD BONDS UNDERPERFORM SAYS DON KELLER A SENIOR PORTFOLIO MANAGER AT KEYSTONE CUSTODIAN FUNDS INC A UNIT OF KEYSTONE GROUP INC IF YOU SEE JUNKBOND FUNDS PROMISING TO MATCH LAST YEAR'S TOTAL RETURNS BE LEERY THE EASIEST WAY TO DO IT SAY THE EXPERTS IS BY LOADING UP ON RISKIER BONDS FOR INVESTORS IN FUNDS SPECIALIZING IN LONGTERM SECURITIES ESPECIALLY TREASURYS THE FOURTH QUARTER MAY BE A HARBINGER OVER THE WHOLE YEAR FUNDS SPECIALIZING IN LONGTERM US TREASURYS AND ZEROCOUPON BONDS WHICH PAY NO INTEREST DID VERY WELL WITH RETURNS OF 1333 AND 2076 RESPECTIVELY BUT IN THE FOURTH QUARTER THEY LOST 123 AND 107 RESPECTIVELY THE DAYS OF BIG RETURNS IN TREASURYS ARE CLEARLY BEHIND US SAYS MR COBURN OF PUTNAM INVESTORS SHOULD BE BUILDING EXPECTATIONS FOR SINGLEDIGIT RETURNS IN THE TREASURY MARKET HE SAYS PERHAPS EVEN LESS THAN THE GIVEN COUPONS FOR SOME SHORTTERM SECURITIES LOW RETURNS OR EVEN LOSSES ARE LIKELY THIS QUARTER FOR FUNDS SPECIALIZING IN SHORTERTERM TREASURYS SAY FUND MANAGERS THAT'S BECAUSE THEY BELIEVE ALL INTEREST RATES WILL RISE THIS YEAR BUT SHORTTERM RATES WILL BE RISING FASTER THAN LONGTERM BOND YIELDS NOTE PRICES FALL WHENEVER RATES RISE ERODING INVESTORS' TOTAL RETURN WE EXPECT A RISE IN RATES WITH THE 30YEAR BOND YIELD ENDING ABOUT 1/2 PERCENTAGE POINT FROM WHERE WE ARE NOW OR ABOUT 685 SAYS MR MACKINNON OF VANGUARD SHORTTERM RATES COULD RISE AS MUCH AS A FULL PERCENTAGE POINT HE SAYS WHICH WOULD PUT THE THREEMONTH TREASURY BILL'S COUPON EQUIVALENT YIELD AT ABOUT 414 A STRONGER ECONOMY AND MODERATE RATE INCREASES MAY MEAN LOWER RETURNS FOR MANY BOND FUNDS BUT NOT NECESSARILY NEGATIVE RETURNS THAT'S BECAUSE INFLATION THE BANE OF BOND INVESTORS IS LIKELY TO REMAIN SUBDUED BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE BUYING POWER OF A FIXED RATE OF RETURN THE BIG CAVEAT IS INFLATION SAYS MR COBURN OF PUTNAM IT WILL BE PRETTY WELL SUBDUED IN 1994 AND THAT WILL PROVIDE A BIT OF A CUSHION TO BOND INVESTMENTS WITH LONG MATURITIES IF YOU WANT TO EVEN COME CLOSE TO 1993'S RETURNS YOU MUST BE WILLING TO TAKE ON GREATER RISKS ANALYSTS SAY THE BEST PLACE FOR THAT SAY THE MANAGERS ARE FUNDS THAT SPECIALIZE IN FOREIGN SECURITIES GLOBAL BOND FUNDS HAD TOTAL RETURNS OF 366 IN THE FOURTH QUARTER JUST BEHIND JUNKBOND FUNDS AND TOTAL RETURNS OF 1761 OVER THE WHOLE YEAR FOR FUNDS SPECIALIZING IN BONDS OF INDUSTRIALIZED NATIONS RETURNS ARE LIKELY TO BE LOWER BUT STILL IN THE HIGH SINGLE DIGITS SAY FUND MANAGERS FOR FUNDS SPECIALIZING IN BONDS OF DEVELOPING NATIONS RETURNS COULD BE EVEN GREATER ESPECIALLY POPULAR AMONG FUND MANAGERS ARE MEXICO ARGENTINA AND VENEZUELA BUT THE RISKS ARE LARGE CURRENCY SHIFTS CAN WIPE OUT ALL RETURNS EVEN WHEN A MARKET DOES WELL AND THERE ARE POLITICAL RISKS SO FAR THE REBELLION IN SOUTHERN MEXICO HASN'T MADE MUCH OF A DENT IN THAT NATION'S BOND MARKETS BUT WHO KNOWS WHAT OTHER SURPRISES LURK IT'S CLEARLY AN ATTRACTIVE AREA BUT NOT FOR WIDOWS AND ORPHANS SAYS MR COBURN TWO OTHER GOOD SECTORS TO BET ON ANALYSTS SAY ARE MUNICIPAL BOND FUNDS AND MORTAGEBACKED BOND FUNDS TAXEXEMPT MUNICIPAL BONDS HAVE BECOME THE POSTER CHILD OF THE BOND MARKET THESE DAYS AS MANAGERS EXTOL THE ADVANTAGES OF MINIMIZING DAMAGE FROM HIGHER TAX RATES BUT THERE IS SOME TRUTH TO ALL THE HYPE FOR ONE THING THERE WILL BE FEWER MUNICIPAL BONDS SOLD THIS YEAR SAY FUND MANAGERS SO IF SUPPLY DROPS AND DEMAND RISES THEY THEORIZE RETURNS WILL BE SMASHING PEOPLE WILL START LOOKING AT WHERE THEIR TAX WITHHOLDING IS AND FINDING MORE REASONS FOR OWNING MORE MUNICIPAL BONDS SAYS MR MACKINNON ONCE AGAIN FUND MANAGERS SAY THE WORST IS OVER WITH MORTGAGEBACKED BOND FUNDS AT LEAST TWO TIMES IN THE PAST TWO YEARS THE SAGES OF WALL STREET BEGAN PUSHING MORTGAGEBACKED SECURITIES BY CLAIMING THAT INTEREST RATES HAD BOTTOMED THEY WERE WRONG BOTH TIMES FUNDS SPECIALIZING IN GOVERNMENT NATIONAL MORTGAGE ASSOCIATION BONDS WERE PUMMELED IN THE FOURTH QUARTER AND POSTED TOTAL RETURNS OF JUST 036 WHILE THEY HAD TOTAL RETURNS OF 644 FOR THE ENTIRE YEAR DESPITE THE RELATIVELY LOW RETURNS LAST YEAR AND BEING BURNED TWICE ALREADY FUND MANAGERS SAY IT MIGHT BE TIME TO CONSIDER MORTGAGES AGAIN WITH INTEREST RATES RISING A BIT THE LOGIC GOES FEWER HOMEOWNERS WILL BE REFINANCING THEIR MORTGAGES THIS IS GOOD NEWS FOR THE FUNDS THAT INVEST IN SECURITIES BACKED BY THE MORTGAGES BUT NOT EVERYONE IS EBULLIENT THERE MAY BE RELIEF FOR THE MORTGAGE SECTOR THIS YEAR SAYS MR MACKINNON BUT I'M NOT SAYING THAT TODAY YOU SHOULD GO OUT AND BUY LOTS OF MORTGAGE SECURITIES ACCORDING TO MR MACKINNON THE WORST OF MORTGAGE REFINANCING IS EITHER NEARLY UPON US OR PAST US 9401070093 940107 BONDHOLDERS OF MACY COULD GET HURT IF SENIOR CREDITORS TRY CRAM DOWN' BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BONDHOLDERS OF RH MACY & CO COULD END UP ON THE LOSING END OF THE RETAILER'S REORGANIZATION IF SENIOR CREDITORS ATTEMPT A CRAM DOWN A CRAM DOWN IS AN OFTENTHREATENED BUT LITTLEUSED MANEUVER IN BANKRUPTCY WORKOUTS SO CALLED BECAUSE IT CRAMS AN UNPALATABLE REORGANIZATION PLAN DOWN THE THROATS OF CREDITORS WITH THE LEAST AMOUNT OF CLOUT IN THIS CASE THE BONDHOLDERS WHO ARE THE MOST JUNIOR AMONG THE CREDITORS PRESSING CLAIMS ON MACY MACY HAS BEEN MIRED IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SINCE JANUARY 1992 MACY'S MANAGEMENT HAS THE EXCLUSIVE RIGHT TO PUT FORTH A PLAN OF REORGANIZATION BUT RIVAL FEDERATED DEPARTMENT STORES INC IS NOW A CREDITOR AND SAYS IT WANTS TO MERGE THE TWO COMPANIES MACY'S CREDITORS INCLUDING THE BANKS THAT HOLD SENIOR DEBT SECURED BY THE RETAILER'S STORES AND TRADEMARKS AND INVESTORS WHO OWN MACY'S UNSECURED BONDS MUST APPROVE ANY PLAN OF REORGANIZATION BEFORE THE COMPANY CAN EMERGE FROM BANKRUPTCY COURT CREDITORS' CLAIMS TOTAL ABOUT 43 BILLION EXCLUDING INTEREST ORDINARILY WHEN A COMPANY EMERGES FROM BANKRUPTCY COURT SENIOR CREDITORS' CLAIMS ARE PAID OFF AT FACE VALUE PLUS ACCRUED INTEREST JUNIOR CREDITORS MEANWHILE GET THE BULK OF THE STOCK DISTRIBUTED BY THE REORGANIZED COMPANY WHICH EFFECTIVELY MAKES THEM THE CONTROLLING SHAREHOLDERS JUNIOR CREDITORS IN MACY'S CASE ARE INVESTORS IN ITS PUBLICLY TRADED BONDS WITH A FACE VALUE OF 13 BILLION BUT THE SENIOR CREDITORS' GRIP ON THE COMPANY COULD PROVE SO TIGHT THAT LITTLE VALUE SEEPS THROUGH TO MACY'S BONDHOLDERS THE REASON HOLDERS OF MACY'S SENIOR BANK DEBT HAVE A TRUMP CARD TO PLAY BECAUSE OF SEVERAL OVERLOOKED FACETS OF THEIR CLAIMS THE RIGHTS OF THESE BANKDEBT HOLDERS ARE DEFINED BY COVENANTS ARCANE TECHNICAL LANGUAGE BURIED DEEP IN REAMS OF MACY'S FINANCIAL DOCUMENTS DATING BACK AS FAR AS 1986 WHEN THE COMPANY WAS TAKEN PRIVATE IN A LEVERAGED BUYOUT THOSE COVENANTS SPECIFY THAT MACY'S BANK CREDITORS WHO ARE OWED ABOUT 14 BILLION MUST BE PAID ALL INTEREST DUE ON THEIR CLAIMS SINCE THE JANUARY 1992 BANKRUPTCYLAW FILING BEFORE BONDHOLDERS RECEIVE A PENNY MOREOVER THE BANK CREDITORS ACTUALLY CONTROL A SIGNIFICANT PORTION OF MACY BONDS THAT'S BECAUSE WHEN SOME OF THE CURRENT MACY SHAREHOLDERS PUT MONEY INTO THE COMPANY IN 1991 TO ALLOW IT TO BUY BACK ABOUT 420 MILLION OF ITS BONDS THOSE BONDS BECAME PART OF THE COLLATERAL BACKING THE BANKDEBT HOLDERS' CLAIMS THE BANK CREDITORS ARE STRENGTHENED BY THE LANGUAGE IN THE INDENTURE AND BY THEIR COLLATERAL POSITION NOTED ISAAC PACHULSKI A BANKRUPTCY SPECIALIST WITH STUTMAN TREISTER & GLATT A LOS ANGELES LAW FIRM SENIOR CREDITORS COULD USE THESE POWERS TO FORCE THROUGH A PLAN OF REORGANIZATION THAT FAVORS THEM IN EFFECT LEAVING THE BONDHOLDERS WITH LITTLE OR NOTHING IN PRACTICAL TERMS THAT MEANS INVESTORS WHO HAVE PAID AS MUCH AS 51 CENTS ON THE DOLLAR FOR MACY SENIOR BONDS MAY FACE STEEP LOSSES FOR HOLDERS OF MACY SUBORDINATED BONDS AND ZEROCOUPON BONDS THE PICTURE LOOKS EVEN GRIMMER THESE BONDS HAD SOARED IN PRICE AFTER FEDERATED ANNOUNCED THAT IT HAD BOUGHT HALF OF A 1 BILLION POOL OF MACY'S MORTGAGES FROM PRUDENTIAL INSURANCE CO OF AMERICA ON HOPES THAT THE RETAILER'S PRESENCE WOULD SPARK A BIDDING WAR THE LIKELIHOOD OF DISAPPOINTMENT LOOMS ESPECIALLY LARGE IF MACY IS UNABLE TO IMPROVE ITS OPERATING PERFORMANCE INVESTORS HAVE ALREADY PUSHED UP THE PRICE OF MACY BONDS SO HIGH THAT THE COMPANY'S MARKET VALUE IS ABOUT 3 BILLION OR A HEADY 13 TIMES CASH FLOW FOR THE YEAR ENDED IN AUGUST EVEN AT THESE ELEVATED VALUES CLAIMS OF SENIOR CREDITORS LEAVE LITTLE ON THE TABLE FOR ANYONE ELSE THAT'S BECAUSE BY DECEMBER THE EARLIEST THAT MACY IS LIKELY TO EMERGE FROM BANKRUPTCY COURT SENIOR CREDITORS' CLAIMS WOULD EXCEED 3 BILLION INCLUDING 26 BILLION CURRENTLY OWED AND AN ADDITIONAL 600 MILLION OR SO IN INTEREST THAT WOULD BE DUE THESE CREDITORS INCLUDE FEDERAL AND LOCAL TAX COLLECTORS AS WELL AS FEDERATED AND FIDELITY INVESTMENTS MACY'S SECONDLARGEST CREDITOR WITH A 490 MILLION HOLDING OF BANK DEBT DAVID G HEIMAN A BANKRUPTCY LAWYER AT CLEVELANDBASED JONES DAY REAVIS & POGUE WHICH IS REPRESENTING FEDERATED SAID HE PREFERRED NOT TO COMMENT ON THE POSSIBILITY OF A CRAM DOWN SEPARATELY DANIEL HARMETZ THE FIDELITY INVESTMENTS FUND MANAGER WHO HAS BEEN COURTING RIVAL BIDDERS IN HOPES OF PERSUADING THEM TO TRY TO TAKE CONTROL OF MACY TALKED WITH MANAGEMENT OF DILLARD DEPARTMENT STORES INC YESTERDAY TO BROACH THE TOPIC OF A FIDELITYDILLARD BID FOR MACY MR HARMETZ CALLED THE DISCUSSION NONEVENTFUL AND SAID IT WAS BRIEF TO SAY THE LEAST DILLARD DID NOT RETURN PHONE CALLS REQUESTING COMMENT FIDELITY INVESTMENTS ANNOUNCED THAT MR HARMETZ WHO HAD BEEN COHEAD OF FIDELITY'S CAPITAL & INCOME FUND CEDED MANAGEMENT OF THAT MUTUAL FUND TO HIS COMANAGER DAVID BREAZZANO EFFECTIVE JAN 14 MR HARMETZ WILL FOCUS ON FIDELITY'S PRIVATE BANKRUPTCY FUNDS BUT WILL CONTINUE TO BE RESPONSIBLE FOR FIDELITY'S MACY HOLDING 9401070092 940107 LETTERS TO THE EDITOR IT'S RUSSIAN BUT IT ISN'T CAPITALISM IN RESPONSE TO ARTHUR SCHLESINGER'S DEC 27 EDITORIALPAGE ESSAY FASCISM'S LENGTHENING SHADOW IT SEEMS STRANGE FOR ARTHUR SCHLESINGER TO ATTRIBUTE THE PROBLEMS IN RUSSIA TO CAPITALISM GIVEN THAT ONLY 5 OF THE CAPITAL STOCK IS IN PRIVATE HANDS THERE ARE NO LAWS TO PROTECT PRIVATE PROPERTY THE CENTRAL BANK CONTINUES TO PRINT RUBLES LIKE MAD AND FORMER COMMUNISTS AND THEIR SUPPORTERS STILL DOMINATE RUSSIAN POLITICS MORE THAN 80 OF THOSE EMPLOYED IN RUSSIA WORK IN THE PUBLIC SECTOR AND TAXES AS A PERCENTAGE OF GDP ARE TWICE AS HIGH AS THOSE IN THE US RUSSIA'S ECONOMY IS ALMOST AS SOCIALIST NOW AS IT WAS UNDER MIKHAIL GORBACHEV IT IS EQUALLY ABSURD FOR MR SCHLESINGER TO HOLD UP THE NEW DEAL AS A SOLUTION TO RUSSIA'S PROBLEMS WHEN DESCRIBING RUSSIA'S INCREASING GAP BETWEEN THE RICH AND POOR ITS CORRUPTION CRIME MISERY RESENTMENT ETC ONE WOULD HAVE THOUGHT THAT MR SCHLESINGER WAS CHARACTERIZING HIS OWN NEW YORK CITY OR ANY OTHER MAJOR URBAN AREA IN THE US POVERTY MISERY AND CRIME HAVE PERSISTED IN THE US DESPITE NEW DEALTYPE PROGRAMS IN FACT SOME WOULD MAINTAIN THAT THE INCREASE IN THESE PROBLEMS CAN BE LINKED TO SUCH GOVERNMENT SOLUTIONS HAVING SPENT TIME IN EASTERN EUROPE IT IS OBVIOUS TO ME THAT MANY OF THE PROBLEMS THERE AS IN THE US RESULT FROM A LACK OF CAPITALISM CAPITALISM REQUIRES A PRIVATE CAPITAL STOCK WHICH RUSSIA DOES NOT HAVE IT REQUIRES LAWS PROTECTING PRIVATE PROPERTY UNHEARD OF IN RUSSIA IT FUNCTIONS BEST WITH A STABLE CURRENCY SATURATING RUSSIA WITH RUBLES IS NOT CAPITALISM INSTITUTE THESE REFORMS AND RUSSIA AND ITS PEOPLE WILL BEGIN TO THRIVE AS IT IS MOST OF EUROPE RUSSIA AND THE US ARE ALREADY FOLLOWING MR SCHLESINGER'S ADVICE SO CAPITALISM CANNOT BE BLAMED FOR THE ENSUING CHAOS MR SCHLESINGER ARGUES THAT THE WEST IS PARTIALLY TO BLAME FOR THE RISE OF FASCISM IN RUSSIA BECAUSE IT HAS SUPPORTED ECONOMIC POLICIES LAISSEZFAIRE CAPITALISM THAT HAVE LED TO SUCH ECONOMIC DETERIORATION THAT RUSSIANS HAVE TURNED TO EXTREMISM IN THE FORM OF FASCISM AS A RESPONSE THIS ARGUMENT IS FLAWED FIRST FASCIST BEHAVIOR IS NOT A NEW PHENOMENON IN RUSSIA UNDER THE CZARS IT HAD FASCISTLIKE REGIMES FOR HUNDREDS OF YEARS SECOND THE CAUSE OF RUSSIA'S ECONOMIC DECLINE HAS BEEN YEARS OF SOCIALISTIC ECONOMIC POLICIES RUSSIA IN NO WAY RESEMBLES A CAPITALISTIC FREEMARKET ECONOMY LEGITIMATE FREEMARKET REFORMS HAVE YET TO BE IMPLEMENTED CLEARLY THE RUSSIAN ECONOMY IS GOING THROUGH A TRANSITION WHAT IT IS IN TRANSITION TO IS NOT CLEAR WHAT IS CLEAR IS THAT ANY ECONOMIC TRANSFORMATION WILL TAKE TIME AND NOT BE COSTLESS BUT HISTORY HAS SHOWN THAT COUNTRIES THAT HAVE ADAPTED FRIEDMANESQUE FREEMARKET POLICIES HAVE DRAMATICALLY INCREASED THEIR STANDARD OF LIVING WHILE ADDING TO SOCIAL STABILITY THE LIBERTE EGALITE FRATERNITE FOR WHICH PROF SCHLESINGER YEARNS IS SIMPLY AN EARLIER EXAMPLE OF THE COLLECTIVES' PRIORITY OVER THE INDIVIDUAL LET US EXAMINE ROUSSEAU'S OWN WORDS FROM HIS DISCOURSE ON POLITICAL ECONOMY EACH OF US PUTS HIS PERSON AND ALL HIS POWER IN COMMON UNDER THE SUPREME DIRECTION OF THE GENERAL WILL AND IN OUR CORPORATE CAPACITY WE RECEIVE EACH INDIVIDUAL MEMBER AS AN INDIVISIBLE PART OF THE WHOLE IS THIS WHAT THE PROFESSOR MEANS BY LIBERAL DEMOCRACY IF SO HOW DOES HE DIFFERENTIATE THIS FORM OF COLLECTIVE FROM OTHERS SUCH AS THE COMMUNISM AND FASCISM HE CLAIMS TO HATE PROF SCHLESINGER HAS NEVER DISGUISED HIS DISDAIN FOR THE LAISSEZFAIRE MARKET AND ITS ALLEGED TRANSGRESSIONS WHERE DOES HE BELIEVE IT EVER EXISTED NO STUDENT OF ECONOMIC HISTORY CAN IDENTIFY ANY PLACE IN ANY PERIOD WITH A TOTALLY FREE MARKET GOVERNMENT IN WHATEVER FORM HAS ALWAYS INTERVENED TO FAVOR ONE GROUP OVER ANOTHER VOLUNTARY EXCHANGE IS THE MOST JUST AND CIVILIZED SYSTEM OF GOODS AND SERVICES TRANSFER EVER EVOLVED AT THE INDIVIDUAL LEVEL IT IS EXCRUCIATINGLY SIMPLE VIEWED FROM THE AUGUST POSITION OF PROF SCHLESINGER AND HIS FELLOWS IT IS SO COMPLEX THEIR GUIDANCE IS NEEDED PERHAPS HE SHOULD FINALLY BREAK OPEN HIS UNIVERSITY COCOON AND COME JOIN THOSE OF US WHO MUST SATISFY THE VOLUNTARY MARKET EACH DAY PROF SCHLESINGER PREMATURELY BEMOANS THE SUCCESS OF FREEMARKET PHILOSOPHY WHICH HE SAYS HAS GIVEN RUSSIA A STRONG DOSE OF FREEBOOTING EXPLOITATIVE HARDHEARTED 19THCENTURY CAPITALISM PATIENCE PROFESSOR A COUNTRY CANNOT ENJOY A RESPONSIBLE JUST COMPASSIONATE 20THCENTURY MIXEDUP ECONOMY UNLESS THERE ARE FIRST ENOUGH RICH PEOPLE TO SOAK WEALTH TO BE CONFISCATED MUST FIRST BE PRODUCED 9401070091 940107 CREDIT RATINGS AMOCO CORP CHICAGO MOODY'S INVESTORS SERVICE INC SAID IT PLACED ABOUT 45 BILLION OF TRIPLEARATED LONGTERM DEBT FOR CERTAIN OF THIS ENERGY COMPANY'S SUBSIDIARIES UNDER REVIEW FOR POTENTIAL DOWNGRADE AMONG THE DEBT ISSUES BEING REVIEWED ARE AMOCO CO'S GUARANTEED DEBENTURES NOTES AND EURONOTES AND AMOCO CANADA PETROLEUM CO LTD'S GUARANTEED NOTES AND EURONOTES THE RATINGS CONCERN CITED PROBLEMS ASSOCIATED WITH REVERSING THE NEGATIVE TRENDS IN AMOCO'S FINANCIAL RETURNS CASH FLOW PROTECTION MEASURES AND PETROLEUM RESERVES EQUITABLE BAG CO LONG ISLAND CITY NY MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS BAG MAKER'S SENIOR NOTES TO CAA FROM SINGLEB2 ABOUT 105 MILLION IN DEBT WAS AFFECTED THE RATINGS AGENCY CITED CONTINUED OPERATING DIFFICULTIES A HIGH DEBT BURDEN AND NONCOMPLIANCE WITH A DEBT COVENANT IN ADDITION EQUITABLE HAS SHOWN DECLINING SALES IN THE PAST NINE MONTHS AND ITS OPERATING PROFIT IS BEING OVERWHELMED BY HIGH DEBT SERVICING COSTS MOODY'S SAID MOODY'S ADDED THAT WITHOUT A SIGNIFICANT OR SUCCESSFUL PENETRATION OF NEW MARKET SEGMENTS SERVICING EQUITABLE'S FINANCIAL OBLIGATIONS WILL BE A DIFFICULT TASK THE COMPANY COULD NOT BE REACHED TO COMMENT ON THE DOWNGRADE MITCHELL ENERGY & DEVELOPMENT CORP MOODY'S INVESTORS SERVICE INC RAISED ITS RATINGS ON ABOUT 550 MILLION OF DEBT ISSUED BY THIS OIL NATURALGAS AND REALESTATE DEVELOPMENT COMPANY BASED IN THE WOODLANDS TEXAS THE RATING SERVICE RAISED MITCHELL'S SENIOR UNSECURED DEBT TO BAA3 FROM BA1 MOODY'S SAID MITCHELL'S RATED DEBT IS ISSUED BY THE PARENT COMPANY RATHER THAN THE ENERGY SUBSIDIARY WHICH IS ITS MAIN SOURCE OF CASH TO SUPPORT BONDS THUS THERE HAD BEEN SOME CONCERN ABOUT THE FINANCIAL IMPLICATIONS OF A LONGRUMORED SPINOFF MOODY'S SAID THE SERVICE ADDED THAT MITCHELL HAS STATED IT WILL IMPLEMENT ENHANCED BONDHOLDER PROTECTION PROVISIONS REGARDING THE COMPANY'S ABILITY TO PAY A DIVIDEND OR DISTRIBUTE ITS ENERGY ASSETS WITHOUT RESTRICTING THE DISTRIBUTION OF ITS REALESTATE ASSETS 9401070090 940107 ENTERTAINMENT THE EVOLUTION OF AMERICA'S LEADING MEN FROM RUDOLPH VALENTINO TO DAVID CARUSO BY LISA MILLER STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S A NEW HUNK IN TOWN HE'S GOT PALE SKIN THINNING RED HAIR AND A PHYSIQUE THAT'S SLOUCHING TOWARD MIDDLE AGE HE'S DAVID CARUSO THE STAR OF ABC'S CONTROVERSIAL POLICE SERIES NYPD BLUE MR CARUSO EMPHATICALLY DOES NOT HAVE LEADINGMAN LOOKS BUT AS JOHN KELLY AN IRISHAMERICAN POLICE DETECTIVE WITH ROUGH EDGES AND A GENTLE SOUL HE HAS ATTRACTED THE INTEREST OF MANY WOMEN WOMEN ARE THE PRIMARY AUDIENCE FOR PRIMETIME PROGRAMS SO THEIR REACTION TO TELEVISION CHARACTERS IS CRUCIAL TO THE SUCCESS OF A SHOW FOR WOMEN AGED 18 TO 49 NYPD BLUE IS THE THIRTEENTH RATED PRIMETIME PROGRAM THE FIRST IS HOME IMPROVEMENT VERY HIGH FOR A POLICE SHOW WHICH TRADITIONALLY DRAWS MALE VIEWERS DAVID MILCH WHO ALONG WITH STEVEN BOCHCO PRODUCES NYPD BLUE SAYS WOMEN ARE DRAWN TO THE SHOW BY THE COMPLEX DRAMATIC CHARACTERS PARTICULARLY KELLY JOHN KELLY IS THE LATEST INCARNATION IN WHAT LYNN SPIGEL AN ASSOCIATE PROFESSOR OF CINEMA AND TELEVISION CALLS TV'S NEW MASCULINITY THE ERA CAN BE TRACED TO THE MID'80S WHEN THE MOVIE THREE MEN AND A BABY AND THE POPULAR TELEVISION SERIES THIRTYSOMETHING BEGAN PORTRAYING MEN WHO HAVE MACHO SEXUALITY BUT WHO ALSO EXPRESS EMOTION AND DO HOUSEWORK OTHER EXAMPLES TODAY SAYS DR SPIGEL WHO TEACHES AT THE UNIVERSITY OF SOUTHERN CALIFORNIA'S SCHOOL OF CINEMA AND TELEVISION ARE TIM TAYLOR IN THE ABC SITCOM HOME IMPROVEMENT AND THE SHIRTLESS CHISELJAWED MEN OF FOX'S MELROSE PLACE WHO ARE OFTEN SEEN DRYING THE DISHES IN BOXER SHORTS IN RECENT YEARS WOMEN HAVE HAD TO BALANCE THEIR PROFESSIONAL AND PERSONAL LIVES WHICH MAY EXPLAIN WHY THEIR TELEVISION HEROES HAVE EVOLVED INTO MORE REALISTIC MEN CERTAINLY FEMALE ROLES ON TELEVISION HAVE ALSO CHANGED SAYS RICHARD PENA DIRECTOR OF THE FILM SOCIETY OF LINCOLN CENTER IN THE 1970S HE SAYS FARRAH FAWCETT WAS TELEVISION'S PINUP GIRL NOW IT'S 47YEAROLD CANDICE BERGEN AS MURPHY BROWN AND SHARPTONGUED JULIA LOUISDREYFUSS FROM SEINFELD A WHOLE NUMBER OF WOMEN PASSED THROUGH LA LAW' ADDS MR PENA WHO WERE SMART GOOD LAWYERS AS WELL AS ATTRACTIVE SEXY WOMEN REALSEEMING MEN ON TELEVISION AND IN THE MOVIES LIKE AL PACINO AND MR CARUSO HAVE APPEAL BECAUSE THEY HAVE TO USE THEIR BRAINS NOT THEIR LOOKS TO GET THE GIRL SAYS ELIZABETH CAUSEY 31 A SCHOOL ADMINISTRATOR IN MANHATTAN THEY'RE SMART YOU THINK MAYBE THEY'RE SMART ENOUGH NOT TO LIKE KIM BASINGER THE FAVORED TYPE OF MAN IN AMERICAN POPULAR CULTURE TODAY IS A TOUGH BUT GENTLE GUY WHO SHOWS PSYCHOLOGICAL DEPTH AND COMPLEXITY SAYS DAVID SCHWARTZ HEAD OF FILM AND VIDEO AT THE AMERICAN MUSEUM OF THE MOVING IMAGE THUS CLINT EASTWOOD'S EVOLUTION FROM DIRTY HARRY TO A REPRESSED SECRET SERVICE AGENT WITH A BATTERED EGO IN IN THE LINE OF FIRE IN THE 1970S YOU SAW THE SENSITIVE QUIET MALE LIKE ALAN ALDA AND WOODY ALLEN SAYS MR SCHWARTZ THEN IN THE 1980S THERE WAS A BACKLASH AGAINST THAT WITH THE BIG MACHO STARS LIKE SCHWARZENEGGER OR STALLONE BUT THAT SORT OF CHARACTER HAS NO DIMENSIONS THE HARDBOILED GUY WITH THE HEART OF GOLD IS A STOCK CHARACTER IN AMERICAN TELEVISION AND FILM AND THE ACTORS WHO HAVE PLAYED HIM SPRING EASILY TO MIND TRACY BOGART AND CAGNEY THE ACTOR WITH WHOM MR CARUSO IS MOST OFTEN COMPARED MY IMMEDIATE RESPONSE TO CARUSO WAS THE SAME RESPONSE I HAD AS A CHILD TO JAMES CAGNEY SAYS ANITA BETHEL 40 AN NYPD BLUE FAN I ALWAYS FELT INSTINCTIVELY THAT CAGNEY WAS A VERY NICE MAN EVEN IN THOSE TOUGHGUY ROLES HE WAS A GUY WITH A BIG HEART MR PENA OF LINCOLN CENTER'S FILM SOCIETY SAYS MR CARUSO HAS SOMETHING ELSE TOO A CONTEMPORARY PSYCHOLOGY HE OFTEN FACES MODERN SITUATIONS IN WHICH RIGHT AND WRONG ARE OBSCURE IN WHICH GHASTLY URBAN VIOLENCE MAKES MORAL OR RATIONAL BEHAVIOR DIFFICULT KELLY SAYS MR CARUSO WANTS TO DO THE RIGHT THING BUT HE DOESN'T ALWAYS HAVE THE ANSWERS KELLY ALSO TAKES HIS CLOTHES OFF WHICH SETS HIM APART FROM HEARTTHROBS AND COPS OF THE PAST MR CARUSO'S IMPERFECT BACK IS SPORADICALLY DISPLAYED ON NYPD BLUE USUALLY ON ITS WAY FROM RUMPLED BED TO SHOWER ADVERTISERS KNOW THAT BOTH MEN AND WOMEN ARE RESPONDING TO MALE NUDITY SAYS NAOMI WOLF THE FEMINIST AUTHOR OF FIRE WITH FIRE WOMEN PERHAPS WITH ENTHUSIASM AND MEN PERHAPS WITH ANXIETY THAT KEEPS EVERYBODY TUNED IN COSMETICS FRAGRANCE DETERGENT AND DIETPLAN COMPANIES HAVE RESPONDED BY BUYING TIME ON NYPD BLUE KELLY'S RED HAIR IS A TIPOFF THAT HE'S A POSTMODERN HEARTTHROB NEITHER TALL DARK AND HANDSOME LIKE CARY GRANT NOR PRETTY AND WHOLESOME LIKE ROBERT REDFORD MR PENA SAYS MR CARUSO'S OFFBEAT LOOKS ENHANCE THE SENSE THAT JOHN KELLY IS A REAL PERSON A HEARTTHROB IS A VALENTINO A TOM CRUISE WHO HAS A CERTAIN KIND OF BEAUTY SAYS MR PENA CARUSO LOOKS LIKE A GUY WHO COULD BE A MILKMAN ERROL FLYNN COULD NEVER BE A MILKMAN DAVID CARUSO REPRESENTS A MAN WITH A CERTAIN KIND OF MACHISMO WHO HAS COME TO TERMS WITH FEMINISM HE KNOWS HE HAS TO NEGOTIATE AND COMPROMISE WHILE NOT BEING EITHER SEDUCED OR CONVINCED BY IT MR PENA ADDS MR CARUSO HIMSELF SAYS WOMEN LIKE HIS CHARACTER BECAUSE HE MAKES THEM FEEL SAFE HE'S EMOTIONAL MORAL AND VULNERABLE HE SAYS HE GOES TO CONFESSION BUT HE CARRIES A GUN MR CARUSO CREDITS HIS PHYSICAL CHARISMA TO HAVING BEEN AN ATHLETE IN HIGH SCHOOL I WASN'T THE TOP DOG HE SAYS BUT I COULD HOLD MY OWN IN ANY SITUATION WHATEVER MR CARUSO'S OWN CHARACTERISTICS THE PARTICULAR MIX OF WRITING ACTING AND PHYSICAL TRAITS THAT COMPRISE DETECTIVE JOHN KELLY APPEAL TO MANY AMERICAN WOMEN MOIRA SULLIVAN 26 AN ASSOCIATE AT MORGAN STANLEY SAYS THE PROCESS IS GRADUAL HE'S NOT NICE LOOKING AND HE'S GOT THAT REALLY BAD NEW YORK ACCENT THOSE TWO THINGS WERE HARD TO GET PAST AT FIRST SHE SAYS OF COURSE THERE ARE MANY WHO REMAIN UNSWAYED HE'S SO PERFECT COMPLAINS A 33YEAROLD SOCIAL WORKER IN NEW YORK PART OF THE TIME HE'S YOUR TYPICAL COP AND PART OF THE TIME HE TALKS LIKE HE HAS A PHD IN PSYCHOLOGY IT'S BEGINNING TO BUG ME 9401070089 940107 LEISURE & ARTS THE MOBILE GUIDE THE HIPPIE WAY TO TRAVEL BY SUSAN G HAUSER PORTLAND ORE TO SAN FRANCISCO EVEN BEFORE BOARDING THE GREEN TORTOISE THE HIPPIE VERSION OF THE GREYHOUND BUS THAT HAS BEEN PLYING AMERICA'S HIGHWAYS FOR NEARLY 25 YEARS I WAS BERATING MYSELF FOR BEING AN UNFIT MOTHER FROM THE LOOKS OF THE PASSENGERS WAITING TO LOAD THEIR SLEEPING BAGS AND BACKPACKS I WOULD BE EXPOSING MY CHILDREN TO SOME REAL WEIRDOS THERE WAS THE GUY WITH THE GREEN HAIR AND THE TATTOOS ALL OVER HIS LEGS I LOOKED ASKANCE AT THE FIFTYSOMETHING MAN WITH THE JOHN LENNON SPECTACLES THE BLACK SLIPPERS AND THE CONICAL CROCHETED CAP THE GIRL WITH THE DOG WAITED UNTIL THE ASSISTANT DRIVER WHO LOOKED LIKE A REFUGEE FROM A GRUNGE BAND CHECKED TO SEE IF ANY PASSENGERS WERE ALLERGIC TO DOGS COOL HE SAID WHEN ALL RESPONSES WERE NEGATIVE HE BECKONED THE GIRL ABOARD AND AS ORION THE DOG SNUFFLED UP AND DOWN THE AISLE LIKE A VACUUM CLEANER THE HIRSUTE DRIVER IN THE RAINBOW BERET PUT THE TORTOISE INTO GEAR AND WE WERE OFF ON A 22HOUR TRIP IN EVERY SENSE OF THE WORD TO SAN FRANCISCO OUR BUS'S NAME WAS ABIOGENESIS WHICH MEANS BRINGING A NONLIVING THING TO LIFE IT IS ONE OF A FLEET OF GREEN TORTOISE BUSES THAT JOURNEY ACROSS COUNTRY AND AS FAR SOUTH AS CENTRAL AMERICA CHEAPLY TRANSPORTING COUNTERCULTURE TYPES WHO SEEK TO ARRIVE INSPIRED NOT DOGTIRED AS THE COMPANY SLOGAN GOES THE PORTLANDSAN FRANCISCO RUN COSTS 39 COMPARED WITH 48 ON GREYHOUND THE OWNER OF THE BUS LINE GARDINER KENT NOW LIVES IN SAN FRANCISCO WHERE HE OPERATES A YOUTH HOSTEL BUT HE STILL OWNS COW CREEK THE SOUTHERN OREGON REST STOP THAT MAKES THE PORTLANDSAN FRANCISCO RUN UNIQUE IT'S A 117ACRE SPREAD NEAR THE TOWN OF ROSEBURG SMACK IN THE HEART OF TIMBER COUNTRY THE GOD AND SPOTTED OWLFEARIN' LOCALS HAVE INDICATED THAT THEY DON'T WANT NO DAMN HIPPIES STOPPING HERE SO A DINNER BREAK AT THE OWNER'S PROPERTY WAS A REASONABLE ALTERNATIVE IN A RETIRED BUS THAT HAD BEEN CONVERTED INTO A KITCHEN WE PREPARED OUR COMMUNAL MEAL THEN WE DISHED UP THE FISH AND VEGETABLES IN A LARGE GEODESIC DOME MADE FROM THREE BRANCHES AND PLASTIC THE DOME IS CALLED THE THOUGHTPROVOKING STRUCTURE NUMEROUS PEOPLE ASKED IF OUR REPAST CONTAINED ANY MEAT PRODUCTS AND WERE RELIEVED TO LEARN THAT NOTHING ANIMALISH SULLIED THE FOOD HOWEVER THE DRIVER AND MORE THAN HALF THE PASSENGERS SMOKED CIGARETTES THIS SITUATION I FOUND THOUGHTPROVOKING AT COW CREEK MY 12YEAROLD SON SAW A NAKED WOMAN UP CLOSE FOR THE FIRST TIME I THINK WE HAD WALKED DOWN TO THE CREEK TO SEE THE SAUNA BUILT ON THE BANK SUDDENLY A SHAPELY BLOND HIPPIE EMERGED NUDE AND GAILY WAVING HER HANDS ABOVE HER HEAD SCAMPERED INTO THE ICECOLD CREEK I TOLD CORY TO AVERT HIS EYES WHICH HAD MYSTERIOUSLY GROWN TO THE SIZE OF SAUCERS SPEAKING OF SAUCERS AFTER CONVERSING WITH MANY OF MY FELLOW PASSENGERS IT DAWNED ON ME THAT I WAS ABOUT THE ONLY ONE ON THE BUS WHO HAD NEVER ENCOUNTERED AN ALIEN OR A UFO I FEEL LEFT OUT I COMPLAINED GOODNATUREDLY TO THE COSMIC WOMAN AT MY SIDE I'VE NEVER SEEN A UFO SHE OFFERED A SUCCINCT SOLUTION CALL IT FORTH SHE WHISPERED BY THE TIME WE HIT THE ROAD AFTER DINNER MY KIDS HAD MADE LOTS OF NEW FRIENDS PEOPLE WHO SAW IN THEM FERTILE NEW GROUND FOR EXPOSTULATING ON STALE OLD HIPPIE POINTS OF VIEW I HAD HEARD THE SAME OLD STUFF A ZILLION TIMES SINCE COLLEGE DAYS SO I DIDN'T GREET THE THEORIES WITH THE SAME ENTHUSIASM FELT BY MY YOUNG SON MOM HE GASPED DID YOU KNOW OUR BODIES ARE JUST FIGMENTS OF OUR IMAGINATION YES I ANSWERED CURTLY I DID HE LOOKED AT ME WITH AMAZEMENT AND WITH A NEW RESPECT NEVER DID HE REALIZE THAT HIS MOTHER KNEW QUITE SO MUCH WE ROLLED DOWN THE HIGHWAY FOR ANOTHER HOUR OR TWO BEFORE OUR NEXT STOP THE DRIVER PLAYED GRATEFUL DEAD TAPES ON THE GENEROUS SOUND SYSTEMSPEAKERS LINED THE CEILING SO THAT NO PASSENGERS EXPERIENCE MUSIC WITHDRAWAL MIKE THE MAN SITTING ACROSS FROM ME TOLD ME HE HAD ATTENDED 30 GRATEFUL DEAD CONCERTS IN HIS LIFETIME HE SANG ALONG WITH EVERY SINGLE TUNE THE GRATEFUL DEAD SUPPLIED OUR LULLABY AS WE CONVERTED THE GREEN TORTOISE INTO ONE HUGE BED A PROCESS KNOWN AS DOING THE MIRACLE THE VERY FRONT AND BACK OF THE BUS BECAME CARPETED WITH FUTONS UPON WHICH PEOPLE STRETCHED OUT IN ROWS OF SLEEPING BAGS THE MIDDLE OF THE BUS WHICH DURING THE DAY HOUSED TWO CAFE BOOTHS BECAME THREETIERED BUNK BEDS ON EITHER SIDE CORY TOOK A TOP BUNK WHILE MY DAUGHTER AND I SQUEEZED TOGETHER ON A MIDDLE BUNK THE DRIVER TURNED OFF THE MUSIC AND SOON NOTHING WAS HEARD BUT SOFT SNORING AND THE WHEELS ON THE BUS GOING ROUND AND ROUND IN THE MORNING I AWOKE TO SEE THE SUN RISING ABOVE PALM TREES THE GREEN TORTOISE WAS INCHING ALONG IN RUSHHOUR TRAFFIC APPROACHING SAN FRANCISCO I GLANCED OVER AT THE VEHICLES IN THE OTHER LANES AND SAW PEOPLE STARING I ADMIT WE WERE QUITE A SIGHT A BUSLOAD OF PEOPLE IN BED THE GOLDEN GATE BRIDGE WAS IN VIEW WHEN PEOPLE STARTED ROLLING UP THEIR SLEEPING BAGS SITTING CROSSLEGGED ON THE FUTONS AND CONVERSING ABOUT THEIR TRAVEL PLANS A MAN MY AGE WHO TOLD ME HE HADN'T BEEN THE SAME SINCE VIETNAM SAID HE WOULD NOT BE LINGERING IN SAN FRANCISCO BUT WOULD LEAVE AS QUICKLY AS POSSIBLE TO CONTINUE HIS TRIP TO COSTA RICA IF I STAY TOO LONG IN SAN FRANCISCO HE COMPLAINED I GET ACID FLASHBACKS BY THE TIME WE ALL PARTED IN DOWNTOWN SAN FRANCISCO EVERYONE ON THE BUS WAS BEGINNING TO LOOK NORMAL TO ME EVEN THE GUY WITH THE GREEN HAIR I ACCEPTED THEM ALL AS PROPER TRAVELING COMPANIONS FOR ME AND MY CHILDREN THE KIDS AND I HOISTED OUR SLEEPING BAGS TO OUR SHOULDERS GRABBED OUR LUGGAGE TURNED OUR BACKS ON OUR FELLOW TRAVELERS AND WALKED AWAY I WONDERED HOW LONG IT WOULD BE BEFORE THE SPELL WAS BROKEN AND ONCE AGAIN THEY WOULD ALL SEEM LIKE WEIRDOS TO ME MS HAUSER IS A WRITER IN PORTLAND 9401070088 940107 TECHNOLOGY BRIEF TULARIK INC THERAPYCOLLABORATION PACT IS SIGNED WITH MERCK & CO CLOSELY HELD TULARIK INC SOUTH SAN FRANCISCO WON A BIG BOOST WHEN PHARMACEUTICAL GIANT MERCK & CO SIGNED AN AGREEMENT TO COLLABORATE ON A THERAPY TO IMPEDE THE PROGRESS OF SEVERAL SEXUALLY TRANSMITTED VIRUSES TERMS WEREN'T DISCLOSED MERCK HAS RIGHTS TO ANY PRODUCTS TULARIK DEVELOPS TO TREAT HERPES HUMAN PAPPILOMA VIRUS OR THE AIDS VIRUS AND HAS OPTIONS TO PRODUCTS THAT TREAT CYTOMEGALOVIRUS WHICH CAN LEAD TO LOSS OF VISION IN AIDS PATIENTS RESPIRATORY SYNCYTIAL VIRUS AND EPSTEIN BARR VIRUS 9401070087 940107 REVIEW & OUTLOOK EDITORIAL ATTORNEY ARMADA A FEW DAYS BEFORE THE NEW YEAR THE CLINTON JUSTICE DEPARTMENT FILED A LAWSUIT AGAINST THE CITY OF AURORA ILL FOR WHAT IT CALLED THE POLICE AND FIRE DEPARTMENTS' PATTERN AND PRACTICE OF DISCRIMINATION AGAINST JOB APPLICANTS WITH DISABILITIES SUCH AS CHRONIC BACK PROBLEMS JUSTICE'S CIVIL RIGHTS LAWYER CALLED THE SUIT A VENTURE INTO A NEW FIELD OF ANTIDISCRIMINATION LAW WELCOME TO THE NEXT BIG CHAPTER IN THE US LITIGATION EXPLOSION NOW BEING UNFOLDED BY THE CLINTON PRESIDENCY WHAT'S SO WRONG WITH MANDATING AN END TO BIAS IN AMERICA THE WAY IT WILL BE DONE INSTEAD OF CONCENTRATING ON INDIVIDUAL CASES OF DEMONSTRABLE DISCRIMINATION AS WAS THE GENERAL FEDERAL POLICY OF THE 1980S THE CLINTONITES SHOW EVERY INTENTION OF USING BROAD STATISTICAL MEASURES AS WITH AURORA THESE WILL SUBSTANTIATE A COMPANY'S PATTERNS AND PRACTICES OR MORE SPECULATIVELY THE ADVERSE IMPACT OF ITS POLICIES ON ACTUAL OR PROSPECTIVE EMPLOYEES SUPPLIERS OR CUSTOMERS ALL WITH REGARD TO PROTECTED CLASSES OF PEOPLE AND THOSE CATEGORIES KEEP INCREASING ONCE THE ACTIVIST LAWYERS ARE TURNED LOOSE AS THEY LAST WERE UNDER JIMMY CARTER WITH LESS SWEEPING LAWS TO WORK WITH US BUSINESSES CAN EXPECT TO BE DRAGGED INTO COURT OR OTHERWISE BROWBEATEN INTO SETTLEMENTS THAT BOOST THE STOCK OF SOME GROUPS AT THE EXPENSE OF OTHERS AND WE ARE TALKING ABOUT GROUPS BECAUSE THAT IS HOW REMEDIES ARE APPLIED WHEN THE MORE CONCRETE BUT DIFFICULT STANDARD OF BIAS AGAINST INDIVIDUALS IS DISCARDED BILL CLINTON'S COMPTROLLER OF THE CURRENCY EUGENE LUDWIG IS A LEADER IN THE NEW ANTIBIAS WAVE AT OTHER AGENCIES GENERAL COUNSELS ITCHING TO BREAK NEW GROUND ARE THE VANGUARD OF THE LEGAL ASSAULT MOREOVER THERE'S A PENTUP IMPATIENCE IN WASHINGTON'S LIBERAL COMMUNITY THAT WILL BE EASED ONLY BY THE KIND OF BROADBRUSH LITIGATION THAT WOULD SATISFY THOSE WHO THINK THE US IS A PATHOLOGICALLY BIASED SOCIETY THE SIGNALCALLER FOR THIS NEW GAME PLAN IS NONE OTHER THAN WEBSTER HUBBELL THE OFFENSIVE COACH AT THE JUSTICE DEPARTMENT THE ASSOCIATE ATTORNEY GENERAL FROM LITTLE ROCK'S ROSE LAW FIRM RECENTLY TOLD A LUNCHEON OF THE WASHINGTON COUNCIL OF LAWYERS A PRO BONO BASTION THAT HELP WOULD BE ON THE WAY SOON MOST SPECIFICALLY THERE WOULD BE A FRONTLOADED AGENDA FOR THE NEW ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS ONCE A REPLACEMENT FOR LANI GUINIER IS FINALLY FOUND AND FOR THE NEW TOP COMMAND AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WE WILL BRING PEOPLE IN WHO INTEND TO BE ACTIVE SOUNDS LIKE THE RECRUITERS WILL BE VISITING THE UNIVERSITY OF WISCONSIN LAW SCHOOL THE CSPAN CAMERA WAS ON HAND TO RECORD HILLARY CLINTON'S FORMER LAW PARTNER ALSO PROMISING AGGRESSIVE PROSECUTION OF THE DISABILITIES ACT THE EDUCATION PERIOD IS OVER HE SAID SPECIFICALLY CITING DENTISTS WHO AVOID AIDS PATIENTS THERE WILL BE SCRUTINY OF INSURERS WHO SKIRT HIGHRISK AREAS DEMOLITION OF GLASS CEILINGS IN THE WORKPLACE AND ENFORCEMENT OF ENVIRONMENTAL EQUITY MEANING THEY'LL DISCOURAGE JOBCREATING NOXIOUS PLANTS IN POOR MINORITY AREAS WHERE LAND PRICES MIGHT INVITE THEM MR HUBBELL PRONOUNCED HIMSELF IN FAVOR OF BROADBASED REMEDIES ALL OF WHICH MEANS LAWYERS ON THE LEFT CAN START PUTTING THOSE NEW ADDITIONS ON THEIR HOMES THE CIVIL RIGHTS DIVISION AT JUSTICE IS A TURNKEY OPERATION FOR WHOMEVER THE CLINTONITES CHOOSE TO RUN IT ITS CAREER STAFF WAS BARELY AFFECTED BY THE REAGAN REVOLUTION AND IT'S DISPOSED TO FIND GROUNDS FOR SWEEPING LEGAL ACTION THE SITUATION IS DIFFERENT AT THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WHERE CLARENCE THOMAS LED A GENUINE REFORMATION TOWARD AN INDIVIDUALRIGHTS MODEL IT WILL TAKE MANY MONTHS OF DILIGENT EFFORT TO IMPLANT THE GROUP VICTIMIZATION MENTALITY BACK INTO THAT AGENCY INDEED THE CASES OF MR THOMAS AND FORMER SUPREME COURT NOMINEE ROBERT BORK RECALL TO MIND WHAT THIS IMPENDING CLINTON COUNTERREVOLUTION IS ALL ABOUT BOTH WERE SAVAGED BY AN ALLIANCE OF LEGALPOLITICAL INTERESTS WHOSE AGENDA PUTTING ASIDE THE ABORTION ISSUE IS A STREAM OF CLASSBASED DISCRIMINATION CLAIMS IT'S PAYBACK TIME NOW AND THE CLINTONS ARE TRYING TO FILL THE SEATS OF LAWYERLY POWER IN THEIR EXECUTIVE BRANCH WITH THE PEOPLE WHO FOUGHT MESSRS THOMAS AND BORK WE SUSPECT MANY BUSINESS PEOPLE STILL REGARD THESE LEGAL STRUGGLES AS RATHER ARCANE OR PAROCHIAL STUFF THE YEARS JUST AHEAD ARE LIKELY TO TEACH THEM DIFFERENT COMPANIES AND OTHER INSTITUTIONS MAY FIND THAT THEIR BOTTOM LINE HAS A BALANCE DUE THAT SOME LEGAL MIND HAS TRACED TO UNCONSCIOUS DISCRIMINATION AGAIN THERE IS A BIG GAP HERE BETWEEN IDEALISTIC RHETORIC AND THE WAY THESE STRATEGIES GET PLAYED OUT THE ARGUMENTS FOR FAIRNESS AND DIVERSITY HAVE SUPERFICIAL APPEAL TO MOST PEOPLE BUT THEY GET TWISTED IN THE BIZARRE COURSE OF THE ACTUAL LITIGATION OVER STATISTICALLY DERIVED COMPLAINTS IN THE END THE CAUSE OF JUSTICE AMOUNTS TO FOUR WORDS SEE YOU IN COURT 9401070086 940107 MEDICALDEVICE FIRMS' NETS SEEN WEAK IN QUARTER CHARGES LIKELY TO BE TAKEN TO ADJUST TO PROPOSALS ON HEALTHCARE REFORM BY FELICIA PAIK SPECIAL TO THE WALL STREET JOURNAL NEW YORK RESTRUCTURING CHARGES AND SLUGGISH EARNINGS WILL STRIKE SOME MAJOR MEDICALDEVICE COMPANIES IN THE 1993 FOURTH QUARTER AN ILL EFFECT OF THE HEALTHCARE INDUSTRY'S RESPONSE TO THE CLINTON ADMINISTRATION'S REFORM PLANS ANALYSTS SAID THE CLINTON PLANS HAVE FORCED THE MARKETPLACE THE DOCTORS AND THE HOSPITALS TO PRACTICE MORE CONSERVATIVELY AND BE MORE COSTCONSCIOUS AND THAT HAS SPILLED DOWN TO MANUFACTURERS AND MEDICALSUPPLY COMPANIES SAID ANALYST EUGENE MELNITCHENKO OF LEGG MASON WOOD WALKER INC THE WRITEOFFS AND CHARGES ARE THE ADJUSTMENTS MADE FOR THE NEW ENVIRONMENT ANALYST SAM NAVARRO OF FURMAN SELZ INC SAID THE PROPOSED HEALTHCARE REFORMS RESULTED IN THE FREEZING OF HOSPITAL BUDGETS HALTING SOME SURGICAL PROCEDURES AND SLOWING THE PURCHASE OF HOSPITAL SUPPLIES WHICH HAS HURT THE MEDICALSUPPLY COMPANIES MR NAVARRO SAID 1993 WAS A TOUGH YEAR FOR THE INDUSTRY MOST COMPANIES WILL END UP SEEING FINANCIAL PERFORMANCES BELOW THE PROJECTED NUMBERS IN 1993 MEDICALSUPPLY HOUSES ARE EXPECTED TO SHOW 2 TO 4 GROWTH IN REVENUE COMPARED WITH THE 5 TO 7 RISE IN 1992 MR MELNITCHENKO SAID HE SAID PROFITS SHOULD INCREASE BY 6 TO 8 AGAINST THE 10 TO 15 GROWTH OF 1992 BAXTER INTERNATIONAL INC SAID IT WILL TAKE A PRETAX CHARGE AGAINST EARNINGS IN THE FOURTH QUARTER OF 700 MILLION TO RESTRUCTURE ITS BUSINESS AND CUT 4500 EMPLOYEES OR 73 OF ITS WORK FORCE ACCORDING TO A FIRST CALL RESEARCH NETWORK SURVEY 19 ANALYSTS ON AVERAGE ESTIMATE BAXTER WILL EARN 59 CENTS A SHARE FOR FOURTH QUARTER OF 1993 COMPARED WITH THE 62 CENTS REPORTED BY BAXTER IN THE YEARAGO PERIOD US SURGICAL CORP SAID IT EXPECTS A 125 MILLION RESTRUCTURING CHARGE IN THE 1993 FOURTH QUARTER THE COMPANY SAID THE CHARGE REPRESENTS COSTS ASSOCIATED WITH SCUTTLING OF PLANS TO OPEN A EUROPEAN HEADQUARTERS IN PARIS AND THE ELIMINATION OF 300 TO 500 EMPLOYEES FIRST CALL PROJECTS A FOURTHQUARTER LOSS OF NINE CENTS A SHARE COMPARED WITH NET INCOME OF 64 CENTS REPORTED FOR THE YEARAGO PERIOD IT WILL TAKE US SURGICAL A COUPLE OF YEARS TO RETURN TO ITS OLD EARNINGS POWER SAID ANALYST GLENN REICIN OF MORGAN STANLEY & CO THEY HAVE TO EMPHASIZE CONTROL OF COSTS AND GET AN INCREASED DEMAND FOR THEIR PRODUCTS MR REICIN ALSO NOTED THAT CR BARD INC HAS BEEN STRUGGLING TO INCREASE ITS SHARE OF THE ANGIOPLASTY MARKET FOR THE PAST THREE YEARS BUT HE EXPECTS THE COMPANY TO DO WELL IN 1994 WITH TWO NEW PRODUCTS UROLASE A LASER TREATMENT FOR PROSTATE CANCER AND CONTIGEN WHICH ALLEVIATES URINARY INCONTINENCE FIRST CALL ESTIMATES EARNINGS OF 43 CENTS A SHARE FOR CR BARD IN FOURTHQUARTER 1993 COMPARED WITH 40 CENTS A YEAR AGO ANALYSTS SAID ST JUDE MEDICAL INC ALSO SHOULD POST MODEST EARNINGS GROWTH FOR THE QUARTER ANALYSTS ARE WAITING FOR THE COMPANY TO DIVERSIFY IN 1994 PERHAPS THROUGH A MAJOR ACQUISITION AS PROMISED BY ST JUDE MEDICAL PRESIDENT AND CHIEF EXECUTIVE RONALD MATRICARIA WHO JOINED THE COMPANY IN MARCH 1993 FIRST CALL ESTIMATES ST JUDE EARNINGS AT 59 CENTS A SHARE FOR THE FOURTH QUARTER COMPARED WITH 55 CENTS IN 1992 MR REICIN SAID THIS YEAR'S MERGER OF COLUMBIA HEALTHCARE CORP AND HCAHOSPITAL CORP OF AMERICA WHICH JOINED THE NATION'S TWO LARGEST FORPROFIT HOSPITAL CHAINS AND THE MERGER OF MERCK & CO AND MEDCO CONTAINMENT SERVICES INC WHICH MADE MERCK THE BIGGEST PRODUCER AND DISTRIBUTOR OF PHARMACEUTICALS SPURRED EXECUTIVES OF OTHER HOSPITAL AND PHARMACEUTICAL COMPANIES TO CONSIDER A MERGER AS A WAY TO IMPROVE OPERATING EFFICIENCY BUT THERE HASN'T BEEN ANYTHING LIKE THAT IN THE MEDICALDEVICE ARENA YET FOR MANAGEMENT TO RESPOND TO MR REICIN SAID SUCH MERGER ACTION IN THE MEDICALSUPPLY SECTOR WOULD IMPROVE ITS EARNINGS PERFORMANCE HE SAID MR REICIN SAID HE EXPECTS SLOWER PERSHARE EARNINGS GROWTH FOR THE GROUP OF STOCKS HE FOLLOWS WHICH INCLUDES BAXTER US SURGICAL ST JUDE MEDICAL JOHNSON & JOHNSON AND CR BARD HE SAID THE GROUP'S EARNINGS SHOULD RISE 145 IN 1994 AFTER RISING 17 IN 1993 AND 19 IN 1992 FURMAN SELZ ANALYST MR NAVARRO SAID THE NEW FISCAL YEAR WILL SHOW A PICKUP FOR THE INDUSTRY BECAUSE HE BELIEVES THE MARKETPLACE ADJUSTMENTS TO THE CLINTON HEALTHCARE PROPOSALS ARE COMPLETE MR MELNITCHENKO ALSO SAYS HE THINKS MEDICALSUPPLY COMPANIES WILL SHOW HIGHER GROWTH IN 1994 HE PROJECTS AN IMPROVEMENT IN REVENUE OF 6 TO 8 AND A RISE IN PROFIT OF 10 TO 15 FROM 1993 9401070085 940107 QUARTERLY MUTUAL FUNDS REVIEW MUTUALFUND GAINS PUT INVESTORS ON TOP OF THE WORLD BY ROBERT MCGOUGH IT WAS A YEAR OF EXTRAORDINARY STRENGTH ACROSSTHEBOARD IN THE FUND BUSINESS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO AFTER THE THIRD YEAR IN A ROW OF STRONG STOCKFUND RETURNS YOU PINCH YOURSELF THE ECONOMIC UPTURN HELPED ALL YEAR LONG I'VE BEEN A BULL ON THE ECONOMY SAYS G KENNETH HEEBNER WHOSE CGM CAPITAL DEVELOPMENT FUND GAINED 287 IN 1993 WITH HELP FROM A BIG STAKE IN CYCLICAL STOCKS TIED TO THE UPS AND DOWNS OF THE BUSINESS CYCLE THE GUIDING PRINCIPLE AT THIS POINT IN TIME IS RISKMANAGEMENT INSTEAD OF RETURNGATHERING SAYS GERALD PERRITT EDITOR OF THE MUTUAL FUND LETTER IN CHICAGO TAKE A MODESTLY AGGRESSIVE APPROACH BUT HEDGE BY HOLDING SOME CASH OR INVESTMENTS SUCH AS GOLD FUNDS WHICH TEND TO GO UP WHEN STOCKS GO DOWN STOCK FUNDS BEAT THE S&P 500 IN 1993 BECAUSE THEY OWNED STOCKS OF SMALL AND MIDSIZED COMPANIES THAT ARE RIDING THE ECONOMIC RECOVERY WITH MORE POISE THAN THE BIG BLUE CHIPS IN THE INDEX US STOCK FUNDS ALSO BOOSTED THEIR RETURNS BY SPLURGING ON HOT FOREIGN STOCKS WHILE US INVESTORS WHO STUCK TO HOME MADE GOOD MONEY IN 1993 THE YEAR WILL GO DOWN AS THE ONE WHEN AMERICAN FUND INVESTORS DISCOVERED FOREIGN STOCK MARKETS FUELED BY RECORD SUMS POURING INTO US MUTUAL FUNDS AND ACCELERATING INVESTMENTS BY INSTITUTIONAL INVESTORS LATIN AMERICAN MARKETS EXPLODED UPWARD IN THE FOURTH QUARTER CATCHING THE WAVE STOCK FUNDS INVESTING IN LATIN AMERICA ROSE 2896 IN THE LAST THREE MONTHS OF 1993 WHILE FOR THE YEAR THEY WERE UP 5705 FUNDS INVESTING IN THE PACIFIC ROSE 2662 IN THE FOURTH QUARTER CAPPING OFF A GAIN OF 6381 FOR THE YEAR ENTRANCED BY THE RETURNS THAT THEIR OWN MONEY HAD CREATED FUND INVESTORS CONTINUED TO POUR MONEY INTO INTERNATIONAL FUNDS AT THE END OF THE YEAR ONE OF THE INVESTORS MAKING MONEY IN PACIFIC FUNDS WAS CAROL SHEARER A SEMIRETIRED HEALTHCARE CONSULTANT IN IRVINE CALIF STARTING A YEAR OR TWO AGO MRS SHEARER MOVED OUT OF T ROWE PRICE INTERNATIONAL FUND AND TRADED AMONG SEVERAL OTHER PRICE FUNDS INCLUDING JAPAN AND NEW ASIA STOCK FUNDS BEAT THE PRELIMINARY 1034 ANNUAL RETURN OF TAXABLEBOND FUNDS IN 1993 BUT FEW INVESTMENT ADVISERS HAD EXPECTED INTEREST RATES TO FALL AS LOW AS THEY DID OR BOND FUNDS TO REGISTER SUCH GOOD GAINS BOTH BONDFUND AND STOCKFUND INVESTORS BEAT THE MEAGER 261 RETURN OF RETAIL MONEYMARKET FUNDS FOR THE YEAR IN FACT EVERY CATEGORY OF STOCK FUND MEASURED BY LIPPER ANALYTICAL SERVICES INC BEAT THE RETURN ON MONEYMARKET FUNDS THE TOTALRETURN FIGURES FOR STOCK AND BOND FUNDS MEASURE PRICE CHANGES AND REINVESTED DIVIDENDS DESPITE A REBOUND IN INTEREST RATES IN THE FOURTH QUARTER BOND FUNDS EKED OUT A SLIM GAIN OF 089 FUNDS INVESTING IN INTERESTRATESENSITIVE STOCKS ALSO FLAGGED IN THE FINAL THREE MONTHS OF 1993 UTILITY FUNDS DROPPED 276 ON AVERAGE FINANCIAL SERVICES FUNDS SLID 369 AND REALESTATE FUNDS FELL 102 ONLY JAPAN SUFFERED AMONG BIG OVERSEAS MARKETS IN THE FOURTH QUARTER AS THE JAPANESE ECONOMY SEEMED TO SINK EVER DEEPER BUT DESPITE A LOSS OF 1222 FOR JAPANESE STOCK FUNDS IN THE FOURTH QUARTER THE FUNDS STILL TURNED IN A STRONG 2294 TOTAL RETURN FOR US INVESTORS IN 1993 GOLD RESUMED ITS SURPRISINGLY STRONG RALLY LIFTING GOLD FUNDS 2478 IN THE FOURTH QUARTER AND 8087 IN THE YEAR EVEN HERE MUCH OF THE IMPETUS SEEMS TO BE COMING FROM GROWING WEALTH IN DEVELOPING NATIONS SAYS ANTHONY ORPHANOS MANAGER OF WARBURG PINCUS GROWTH & INCOME UP 371 IN 1993 THERE'S BEEN TREMENDOUS DEMAND AS A RESULT OF THEIR TREMENDOUS INCREASE IN WEALTH OVER THE LAST SEVERAL YEARS AND THE LACK OF DEPTH IN THEIR OWN CAPITAL MARKETS AS A PLACE TO INVEST THE SAVINGS BEING BUILT UP MR ORPHANOS SAYS THE SURFEIT OF GOOD NEWS IN STOCK MARKETS AROUND THE WORLD LEAVES SOME INVESTORS WONDERING ARE THERE ANY BARGAINS LEFT OUT THERE IT'S HARD TO GET EXCITED ABOUT ONE OR TWO ASSET CLASSES INTO WHICH INVESTORS COULD THROW A LOT OF NEW MONEY SAYS KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A NEWSLETTER IN SAN FRANCISCO THAT SUGGESTS THAT INVESTORS MIGHT LOOK TO 1994 AS THE YEAR THAT THEY WANT TO BE REALLY DIVERSIFIED AND NOT MAKE A LOT OF BIG BETS FOR INVESTORS SAVING TOWARD A GOAL OF AT MOST 10 YEARS YOU REALLY WANT TO BE IN THREE AREAS DOMESTIC EQUITIES INTERNATIONAL EQUITIES AND SHORTTERM FIXEDINCOME OR CASH SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR AT FINANCIAL DESIGN AN INVESTMENT ADVISORY FIRM IN LARKSPUR CALIF THE SHORTER YOUR TIME HORIZON HE SAYS THE MORE YOU SHOULD HOLD IN CASH OR IN SHORTTERM BOND FUNDS DESPITE THEIR FABULOUS RETURNS IN 1993 DON'T BET THE RANCH ON EMERGINGMARKETS FUNDS IN 1994 ADVISERS SAY EVEN IN THE BEST OF WORLDS THEY AREN'T LIKELY TO REPEAT SUCH A HUGE JUMP IN PRICES 9401070083 940107 ECONOMY GOLDEN WEST TALKS TO CALFED HOLDERS ABOUT BUYING THRIFT FOR 630 MILLION BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN WEST FINANCIAL CORP CHAIRMAN HERBERT M SANDLER TOOK HIS 630 MILLION OFFER FOR TROUBLED CALIFORNIA FEDERAL BANK DIRECTLY TO KEY SHAREHOLDERS AFTER AN OVERTURE WAS REBUFFED BY CALFED'S BOARD THE SHAREHOLDERS MOSTLY INSTITUTIONAL INVESTORS WHO COLLECTIVELY OWN MORE THAN 50 OF CALFED WERE STILL MEETING WITH MR SANDLER LAST NIGHT AND COULDN'T BE REACHED FOR COMMENT GOLDEN'S UNUSUAL MOVE WHICH CAME WEEKS AFTER CALFED'S BOARD REJECTED A LETTER OF INTENT OUTLINING GOLDEN'S BID CLASHES WITH THE OAKLAND CALIF THRIFT'S REPUTATION AS A STAID INSTITUTION THAT EVADED THE SAVINGSANDLOAN CRISIS UNDER ITS HUSBANDANDWIFE CHIEF EXECUTIVE TEAM HERBERT AND MARION SANDLER GOLDEN WITH 284 BILLION IN ASSETS NOW ENJOYS A 143 PROFIT MARGIN AMONG THE FATTEST IN THE INDUSTRY MEANWHILE CALFED WITH 157 BILLION IN ASSETS IS STRUGGLING AGAINST CONTINUED LOSSES BY ACQUIRING LOS ANGELESBASED CALFED GOLDEN WOULD EXPAND ITS PRESENCE IN SOUTHERN CALIFORNIA AND GIVE ITSELF FOOTHOLDS IN NEVADA AND GEORGIA AND BY CONSOLIDATING STAFF POSITIONS GOLDEN ALSO COULD WRING OUT ABOUT 60 MILLION TO 70 MILLION A YEAR SAID JONATHAN GRAY AN ANALYST AT SANFORD C BERNSTEIN & CO THE SANDLERS' INTEREST IN CALFED WAS APPARENTLY PIQUED BY AN ESSAY THAT EDWARD G HARSHFIELD CALFED'S NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER WROTE IN CALFED'S SEPT 30 REPORT TO SHAREHOLDERS THE TURNAROUND BANKER SAID CALFED WAS HURT BY NONPERFORMING LOANS AND HAD RETAINED INVESTMENT BANKER SMITH BARNEY SHEARSON INC TO EXPLORE WAYS TO MAXIMIZE SHAREHOLDER VALUE BUT IN AN INTERVIEW MR HARSHFIELD POOHPOOHED MR SANDLER'S OVERTURES THAT'S NOT AN OFFER IT'S A STARTING POINT TO MARK DOWN HE ADDED I'M WILLING TO SELL THIS PLACE AT FAIR VALUE I HAVEN'T SEEN A FAIR VALUE YET IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SHARES OF CALFED CLOSED AT 16125 UP 125 OR 84 ON VOLUME OF 13 MILLION SHARES THE COMPANY'S SEPT 30 BOOK VALUE WAS 2150 A SHARE SPECULATION ABOUT AN OFFER HAS CAUSED CALFED'S STOCK TO JUMP 32 SINCE EARLY NOVEMBER MEANWHILE GOLDEN'S STOCK ALSO LISTED ON THE BIG BOARD ROSE 75 CENTS TO CLOSE AT 3925 A SHARE ON VOLUME OF 204400 SHARES GOLDEN'S 630 MILLION BID INCLUDES 2150 A SHARE FOR CALFED'S 25 MILLION COMMON SHARES OUTSTANDING PLUS 90 MILLION FOR PREFERRED STOCK SUBJECT TO DUE DILIGENCE SMITH BARNEY WHICH BEGAN STUDYING CALFED IN JULY DECIDED TO HOLD AND FIX THE COMPANY RATHER THAN SELL IT TO A BIDDER UNDER THIS STRATEGY CALFED WILL SELL ITS SOUTHEAST DIVISION WHICH INCLUDES 43 BRANCHES WITH TOTAL ASSETS OF 4 BILLION AND RAISE 200 MILLION TO 300 MILLION IN NEW CAPITAL BY ISSUING AND SELLING PREFERRED STOCK AND THROUGH A RIGHTS OFFERING SEVERAL SHAREHOLDERS WHO DECLINED TO BE IDENTIFIED CRITICIZED THE HOLD AND FIX STRATEGY AS DILUTIVE TO THEIR HOLDINGS I HAVE TO THINK THAT SHAREHOLDERS ARE INFINITELY BETTER SERVED BY MR SANDLER'S OFFER SAID ONE HOLDER IN A LETTER SENT WITH THE BID MR SANDLER SAID THE PROPOSED ACQUISITION WOULD ALLOW CALFED TO QUICKLY PUT BEHIND IT THE UNCERTAINTY IN WHICH THE BANK CURRENTLY FINDS ITSELF AND TO FACE CONFIDENTLY ANY CONTINUING LOSSES 9401070082 940107 TECHNOLOGY & MEDICINE NEC SEEKING HELP FROM DELL IN SALES OF ITS COMPUTERS BY JACOB M SCHLESINGER AND DAVID P HAMILTON STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO NEC CORP ENCIRCLED BY A NEW WAVE OF US PERSONALCOMPUTER COMPETITORS IN ITS HOME MARKET IS TRYING TO DRAFT ONE OF THEM DELL COMPUTER CORPTO HELP PRESERVE ITS KINGDOM JAPAN'S LEADING PC MAKER WITH OVER 50 OF THE DOMESTIC MARKET IS NEGOTIATING TO SUPPLY NECSTANDARD PCS TO DELL WHICH WOULD SELL THE MACHINES IN JAPAN UNDER THE DELL LABEL AN NEC SPOKESMAN SAID NEC SELLS PCS IN JAPAN THAT AREN'T COMPATIBLE WITH THE STANDARD ESTABLISHED BY INTERNATIONAL BUSINESS MACHINES CORP DELL REFUSED TO COMMENT ON THE DISCUSSIONS AT THIS TIME THERE HAS BEEN NO DECISION MADE ON THIS PROJECT SAID A COMPANY SPOKESWOMAN IN TOKYO SHE ADDED HOWEVER THAT THERE IS MUCH POSSIBILITY THE COMPANY MIGHT OFFER PCS OTHER THAN THOSE HEWING TO THE IBM STANDARD SINCE IT IS DELL POLICY TO SUPPLY WHAT THE CUSTOMER NEEDS IF SUCH A DEAL BECOMES REALITY IT WOULD BE THE FIRST SUCCESS IN THE US ASSAULT ON NEC'S NEARMONOPOLY ON PCS IN JAPAN US MANUFACTURERS ENTERED JAPAN MORE THAN A YEAR AGO WITH IBMSTYLE MACHINES AND A PRICECUTTING ATTACK INTENDED TO ESTABLISH A BEACHHEAD IN THE WORLD'S SECONDLARGEST PC MARKET AND THE ONLY ONE THEY DON'T DOMINATE SO FAR US FIRMS HAVE RALLIED ALL OF JAPAN'S MAJOR PC MAKERS EXCEPT NEC TO THEIR STANDARD THE NEGOTIATIONS ALSO APPEAR TO SIGNIFY A NEW OFFENSIVE IN THE JAPANESE PC WARS SINCE NEC HAS NEVER BEFORE ALLOWED OTHER COMPANIES TO SELL ITS MACHINES IN THE JAPANESE MARKET IT'S AN ADMISSION THAT NEC IS HAVING TROUBLE RETAINING ITS SHARE AND WANTS TO SOLICIT OTHER MANUFACTURERS HELP SAID CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC FOR DELL TOO A DEAL WITH NEC WOULD MARK A MAJOR CHANGE IN ITS STRATEGY THE ONCE HIGHFLYING COMPUTER MAKER HAS BEEN PLAGUED BY TROUBLE IN ITS PRODUCT LINES ESPECIALLY LAPTOP COMPUTERS WHICH MAKE UP ROUGHLY 40 OF ALL PCS SOLD IN JAPAN DELL HAS ALSO BEEN IN RECENT NEGOTIATIONS TO BUY LAPTOP MACHINES FROM SONY CORP AND AST RESEARCH INC THE NEWS SHARPLY BOOSTED NEC'S SHARE PRICE IN TOKYO AT MIDMORNING ON THE TOKYO STOCK EXCHANGE NEC SHARES WERE UP 17 YEN OR NEARLY 2 AT 923 IN HEAVY DEALINGS AFTER ONLY AN HOUR OF TRADING MORE THAN FOUR MILLION SHARES HAD CHANGED HANDS THE NEC SPOKESMAN SAID DELL APPROACHED NEC ABOUT THE POSSIBLE TIEUP NEC AGREED TO THE TALKS HE ADDED BECAUSE DELL IS DOING DIRECT MARKETING OR SELLING BY MAIL ORDER SUCH SALES METHODS ARE RARE IN JAPAN AND CURRENTLY NEC DOES NOT HAVE A DIRECT SALES CHANNEL LIKE THAT THE SPOKESMAN SAID SO IT WOULDN'T HAVE ANY DIRECT IMPACT OR COMPETITION WITH OUR REGULAR RESALE CHANNELS HE SAID DELL WAS CONSIDERING SELLING NEC NOTEBOOKSIZED PCS AND DESKTOP MODELS AND THAT NEC HOPED TO START SELLING UNDER THE DELL NAME BY SPRING HE SAID NEC WAS AIMING TO SUPPLY DELL WITH AT LEAST 1000 UNITS A MONTH 9401070081 940107 KAWESKE PROBED BY SEC OVER PERSONAL TRADES FORMER PORTFOLIO MANAGER FIRED BY INVESCO BOUGHT ISSUE PUSHED BY KHAN BY LAURIE P COHEN AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER FORMER INVESCO FUNDS GROUP PORTFOLIO MANAGER JOHN KAWESKE VIOLATED FEDERAL SECURITIES LAWS BY ALLEGEDLY FAILING TO REPORT CERTAIN TRADES IN HIS PERSONAL ACCOUNT TO HIS EMPLOYER LAWYERS FOR BOTH MR KAWESKE AND FOR INVESCO WHICH FIRED THE STAR PORTFOLIO MANAGER TUESDAY CONFIRMED THAT DOCUMENTS RELATING TO CERTAIN TRADES BY MR KAWESKE HAD BEEN TURNED OVER TO THE DENVER OFFICE OF THE SEC THIS WEEK AND THAT THE AGENCY WAS EXAMINING SOME OF MR KAWESKE'S TRADES DENVERBASED INVESCO PREVIOUSLY SAID IT DISMISSED MR KAWESKE FOR VIOLATING THE BIG MUTUALFUND COMPANY'S RULES ABOUT REPORTING PERSONAL SECURITIES TRADES IT SAID MR KAWESKE HADN'T GOTTEN APPROVAL FOR OR DIDN'T REPORT CONFIRMATION OF SOME 10 TO 20 TRADES IN HIS PERSONAL ACCOUNT MUTUAL FUNDS ARE REQUIRED BY THE SEC TO KEEP TRACK OF FUND MANAGERS' PERSONAL TRADES MR KAWESKE 52 YEARS OLD MANAGED OR COMANAGED THREE INVESCO FUNDS WITH ASSETS OF 46 BILLION OR NEARLY HALF THE 10 BILLION MANAGED BY INVESCO FUNDS GROUP THE GROUP IS OWNED BY UNITED KINGDOMBASED INVESCO PLC AN INVESTMENT MANAGER WITH 64 BILLION IN ASSETS INVESCO WOULDN'T GIVE SPECIFICS OF MR KAWESKE'S TRADES YESTERDAY BUT AT LEAST ONE OF THE TRADES IN QUESTION INVOLVED A PERSONAL INVESTMENT BY MR KAWESKE IN A PRIVATE OFFERING PUSHED BY RAFI KHAN A CALIFORNIA STOCK PROMOTER WHO IS WAGING A PROXY FIGHT FOR CONTROL OF ICN PHARMACEUTICALS ACCORDING TO INDIVIDUALS FAMILIAR WITH THE MATTER THEY SAID THE DEAL INVOLVED WAS TOO SMALL TO BE BOUGHT BY INVESCO FUNDS FUNDS MR KAWESKE MANAGED HAD BEEN LARGE BUYERS OF ICN AND OTHER STOCKS PROMOTED BY MR KHAN LAST MONTH A FEDERAL DISTRICT JUDGE PRESIDING OVER A LAWSUIT BROUGHT BY ICN FOUND THAT MR KHAN SCHEMED TO BUY STOCK IN BRITISH GAS ILLEGALLY IN 1986 THE JUDGE HAD ASKED FEDERAL PROSECUTORS TO EXAMINE WHETHER MR KHAN PERJURED HIMSELF DURING THE ICN PROCEEDINGS ACCORDING TO DAN HESSER INVESCO'S CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY ALSO LEARNED THIS WEEK OF UNREPORTED TRADES IN MR KAWESKE'S WIFE'S NAME MR HESSER SAID THESE TRADES VIOLATED THE FIRM'S RULES ROBERT DAVENPORT THE HEAD OF THE SEC'S REGIONAL OFFICE IN DENVER DECLINED TO CONFIRM OR DENY THE EXISTENCE OF AN INVESTIGATION INTO TRADING BY MR KAWESKE GLEN PAYNE INVESCO'S GENERAL COUNSEL SAID INVESCO'S FIRING OF MR KAWESKE WAS RELEVANT TO OUR SEC REPORTING REQUIREMENTS ANDREW LEVANDER THE ATTORNEY REPRESENTING MR KAWESKE SAID HE BELIEVED THE SEC INVESTIGATION WOULDN'T UNCOVER ANYTHING MORE THAN VIOLATIONS OF A TECHNICAL REPORTING REQUIREMENT HE SAID THAT THIS ISN'T A QUESTION OF INTEGRITY OR HARM TO SHAREHOLDERS AND THAT MR KAWESKE ALWAYS KEPT THE SHAREHOLDERS' INTERESTS FIRST MR LEVANDER SAID MR KAWESKE WASN'T AS CLOSE TO MR KHAN AS OTHER INVESCO FUND MANAGERS WERE INDEED INVESCO'S STRATEGIC PORTFOLIOS TECHNOLOGY FUND MANAGED BY DAN LEONARD CONTINUES TO HOLD STOCKS IN ITS PORTFOLIO FIRST INTRODUCED TO INVESCO BY MR KHAN ACCORDING TO INVESCO'S MR PAYNE HOWEVER MR PAYNE SAID WE AS A FIRM HAVE NOT DONE BUSINESS WITH RAFI KHAN FOR AT LEAST THE LAST THREE MONTHS MR PAYNE ADDED THAT WE HAVE ABSOLUTELY NO INFORMATION THAT ANY OTHER PORTFOLIO MANAGER HAS VIOLATED OUR CODE OF CONDUCT MR KAWESKE WHO SPECIALIZED IN HEALTHCARE AND BIOTECHNOLOGY STOCKS ALSO SEEMED TO HAVE A CLOSE RELATIONSHIP WITH ANOTHER STOCK PROMOTER DAVID BLECH MR BLECH IS THE CHAIRMAN OF D BLECH & CO A NEW YORK BROKERAGE FIRM THAT SPECIALIZES IN FINANCING BIOTECHNOLOGY COMPANIES AS OF OCT 31 MR KAWESKE'S FUNDS OWNED SEVERAL STOCKS SPONSORED BY D BLECH LAST YEAR MR KAWESKE'S SON JOHN KAWESKE JR WORKED AT D BLECH AS A VICE PRESIDENT OF INVESTMENTS AS PREVIOUSLY REPORTED SEC ENFORCEMENT INVESTIGATORS ARE LOOKING AT WHETHER MR BLECH MAY HAVE VIOLATED SECURITIES LAWS BY BESTOWING CHEAP STOCK ON MONEY MANAGERS AND OTHERS PRIOR TO PUBLIC OFFERINGS IN THE PAST MR BLECH SOLD CHEAP STOCK AND WARRANTS TO BROKERS AND INFLUENTIAL WALL STREET EXECUTIVES WHO THEN HAD A VESTED INTEREST IN PROMOTING HIS DEALS TO INVESTORS INVESCO'S MR PAYNE SAID NOBODY KNEW THAT MR KAWESKE'S SON WORKED FOR BLECH HE SAID THAT IF AS A RESULT OF KAWESKE'S SON GOING TO WORK FOR BLECH THERE IS EVIDENCE THAT OUR FUNDS BOUGHT DEALS THAT WOULD BE VERY SERIOUS MR LEVANDER SAID THAT MR KAWESKE HAD DISCLOSED HIS SON'S EMPLOYMENT TO INVESCO THE AGREEMENT WAS THAT INVESCO WOULDN'T COMPENSATE HIS SON IN ANY WAY FOR INVESCO PURCHASES OF BLECHSPONSORED DEALS MR LEVANDER SAID MR KAWESKE ACCEPTED ONLY ONE BLECHSPONSORED STOCK ON BEHALF OF HIS FUNDS DURING THE TIME HIS SON WORKED AT D BLECH REJECTING FOUR OTHERS MR KAWESKE SR NEVER PERSONALLY INVESTED IN A BLECH DEAL MR LEVANDER SAID THE PERFORMANCE OF MR KAWESKE'S FUNDS HAS BEEN HURT BY A GENERAL DECLINE IN THE PRICES OF MEDICAL AND BIOTECHNOLOGY STOCKS PEOPLE CLOSE TO MR KAWESKE SAY HE RECENTLY INDICATED TO INVESCO'S MANAGEMENT THAT HE WAS PLANNING TO LEAVE THE FIRM INDIVIDUALS WHO KNOW HIM SAY HE BELIEVES THAT THE FIRM FIRED HIM BECAUSE IT WAS ANGRY ABOUT HIS IMPENDING DEPARTURE BUT MR HESSER INVESCO'S CHAIRMAN SAID THE FIRING IS NOT A VENDETTA AGAINST KAWESKE MR PAYNE THE GENERAL COUNSEL SAID THE FIRM DISCOVERED THE ALLEGED TRADING VIOLATIONS DURING AN ONGOING REVIEW OF OUR EMPLOYEES' PERSONAL SECURITIES TRANSACTIONS MR PAYNE SAID INVESCO HAS SO FAR EXAMINED TWO YEARS WORTH OF MR KAWESKE'S PERSONAL TRADES AND IS PLANNING TO CONTINUE ITS INVESTIGATION 9401070080 940107 SMALL STOCK FOCUS ISSUES EKE OUT 012 GAIN IN SHADOW OF ANOTHER RECORD DAY FOR INDUSTRIALS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK ANOTHER SLOW STEADY MOVE HIGHER BY SMALLCOMPANY STOCKS WAS OVERSHADOWED BY A SECONDSTRAIGHT RECORD CLOSE BY THE DOW JONES INDUSTRIAL AVERAGE BUT OBSERVERS SAID NOT TO COUNT SMALLER STOCKS OUT SMALL STOCKS HAD THAT TERRIFIC RUN FROM APRIL TO OCTOBER AND THE DOW INDUSTRIALS KIND OF TRUDGED FORWARD SAID ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS INC A LITTLE SLUGGISHNESS HERE IS UNDERSTANDABLE AND NORMAL THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES EKED OUT A 031POINT OR 012 GAIN TO END AT 25833 JUST 184 POINTS OR 071 FROM ITS RECORD OF 26017 SET NOV 2 NASDAQ STOCKS CHURNED A BIT IN A NARROW RANGE BUT THE COMPOSITE INDEX CHALKED UP 236 POINTS OR 030 TO 78041 ONLY 699 POINTS OR 089 FROM ITS RECORD CLOSING HIGH HIT OCT 15 NASDAQ ADVANCERS BEAT RETREATERS 1634 TO 1430 BUT THE INDUSTRIALS CLIMBED 506 POINTS OR 013 TO 380388 BREAKING THE RECORD SET WEDNESDAY AND BUSTING THROUGH THE 3800 BARRIER FOR THE FIRST TIME INDEED TODAY'S NEW YORK STOCK EXCHANGE RALLY WAS POWERED BY ECONOMICALLY SENSITIVE ISSUES WITH BIG BOARD ADVANCERS BARELY SCRAPING PAST DECLINERS SOME FEEL THIS NARROWBASED STRENGTH MIGHT NOT BE SUSTAINABLE NASDAQ NATIONAL MARKET ROSE SLIGHTLY TO 296513337 SHARES FROM 295128300 SHARES WEDNESDAY TOTAL VOLUME FELL BACK A BIT TO 349206000 SHARES FROM 249880300 WEDNESDAY IN THE MEDICALRELATED GROUP MCGAW AN IRVINE CALIF PRODUCER AND DISTRIBUTOR OF INTRAVENOUS SOLUTIONS AND ASSEMBLIES SURGED 4 1/2 OR 42 TO 15 1/4 LATE WEDNESDAY IVAX TRADED ON THE AMERICAN STOCK EXCHANGE SAID IT HAS ENTERED INTO A DEFINITIVE MERGER AGREEMENT TO BUY MCGAW FOR ABOUT 440 MILLION SEVERAL WAVES OF GOOD NEWS CAUSED MONARCH CASINO & RESORT TO RALLY 2 TO 11 1/4 THE COMPANY SAID REVENUE ROSE 26 FOR THE FOURTH QUARTER AND 16 FOR THE FULL YEAR BASED ON A PRELIMINARY REVIEW MONARCH ALSO SAID IT WILL EXPAND ITS CLARION HOTEL CASINO IN RENO NEV SEPARATELY THE COMPANY SAID THE CITY OF GARY IND AGREED TO ENDORSE DUNES MARINA RESORT & CASINOS INC A MAJORITYOWNED SUBSIDIARY OF MONARCH AS ONE OF TWO CODEVELOPERS OF GAMING FACILITIES IN GARY SUBJECT TO ADDITIONAL APPROVALS A DISAPPOINTING 1994 EARNINGS OUTLOOK TOOK DOWN UNITED STATES BANKNOTE NYSE 1 3/4 TO 4 3/8 THE NEW YORK DESIGNER AND PRODUCER OF DOCUMENTS OF VALUE SAID A LOSS OF STAMP BUSINESS FROM THE US POSTAL SERVICE COULD REDUCE EARNINGS BY ABOUT 15 CENTS A SHARE THIS YEAR STRUCTURAL DYNAMICS RESEARCH RETREATED 1 1/8 TO 13 3/4 MORGAN STANLEY AND HANCOCK INSTITUTIONAL EQUITY SERVICES LOWERED THEIR RATINGS ON THE SOFTWARE COMPANY IN MILFORD OHIO TO HOLD FROM BUY THE BROKERAGE FIRMS CITED THE COMPANY'S ANNOUNCEMENT WEDNESDAY THAT IT EXPECTS FOURTHQUARTER REVENUE AND EARNINGS TO FALL SHORT OF ANALYSTS' EXPECTATIONS SOME SMALLER INTERESTRATE SENSITIVE STOCKS FELL BACK DESPITE A BOND RALLY FOR EXAMPLE ANCHOR BANCORP WISCONSIN MADISON WIS WAS DOWN 1/2 TO 22 3/4 FIRST INDIANA CORP INDIANAPOLIS WAS OFF 1/4 TO 23 1/4 AND CENTERBANK LOST 1/4 TO 11 1/4 BUT CALIFORNIA FEDERAL BANK NYSE ROSE 1 1/4 TO 16 1/8 THE COMPANY SAID LATE WEDNESDAY THAT IT HAS HIRED SMITH BARNEY SHEARSON INC TO SELL ITS SOUTHEAST DIVISION TO ENABLE IT TO CONCENTRATE ITS OPERATIONS IN CALIFORNIA AND NEVADA AND FOCUS ALL EFFORTS ON MAXIMIZING ITS OPERATING PROFITS IN THAT REGION ALSO CALIFORNIA FEDERAL SAID IT PLANS TO RAISE 200 TO 300 MILLION IN NEW CAPITAL THROUGH THE SALE OF PREFERRED STOCK AND A RIGHTS OFFERING TO ITS STOCKHOLDERS RETAILERS WERE IN THE SPOTLIGHT AND MANY FELL FOLLOWING DISAPPOINTING DECEMBER RESULTS FOR STORES OPEN AT LEAST A YEAR SOLO SERVE PLUMMETED 7/8 TO 3 1/8 THE COMPANY IN SAN ANTONIO TEXAS SAID DECEMBER SAMESTORE SALES FELL 56 WHILE SAMESTORE SALES FOR THE 48 WEEKS ENDED JAN 1 DECLINED 57 OTHER COMPANIES THAT SHOWED DECLINES AFTER REPORTING A DECREASE IN SAMESTORE SALES WERE MERRYGOROUND ENTERPRISES JOPPA MD DOWN 1/2 TO 3 1/2 AND ANNTAYLOR STORES NEW YORK DOWN 1 TO 24 7/8 BOTH ARE LISTED ON THE NYSE NASDAQTRADED DRESS BARN STAMFORD CONN SAGGED 1 TO 12 7/8 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 121 WHILE 23 HIT NEW LOWS OBSERVERS SUCH AS AG EDWARDS'S GOLDMAN HOWEVER THINK THE RUSSELL 2000 AND THE NASDAQ COMPOSITE WILL BOTH MAKE NEW HIGHS SOON IT'S NOT LIKE THEY'RE WALLFLOWERS HE SAID SMALLER STOCKS ARE STILL IN A STRONG BULL MARKET ANALYSTS NOTE HOWEVER THAT IT'S A SELECTIVE MARKET RECENT TRENDS HAVE SHOWN BUYERS THROWING MONEY AT A VARIETY OF STOCKS ON A CASEBYCASE BASIS RATHER THAN BUILDING UP ANY ONE SECTOR OUR MARKET DOESN'T HAVE TO ACT GREAT TO TRADE WELL SAID JIM WHIPPLE SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS INC WHIPPLE ADDED THAT FIRSTOFTHEYEAR EUPHORIA IS SPURRING MARKET PLAYERS TO PUT THEIR MONEY INTO THE MOST EASILY ACCESSIBLE STOCKS THE LARGE CYCLICALS 9401070079 940107 LEISURE & ARTS BOOKSHELF A LIFE AT THE MERCY OF IDEOLOGY BY BRUCE BAWER IDEOLOGY THE ELDERLY SOVIET EMIGRE AVIGDOR BARKOV DECLARES IN NATHAN SHAHAM'S PENETRATING NEW NOVEL BONE TO THE BONE GROVE PRESS 345 PAGES 22 HAS PLAYED AN IMPORTANT ROLE IN MY LIFE MR SHAHAM MAKES THAT ABUNDANTLY CLEAR IN THIS BOOK WHICH TAKES THE FORM OF A JOURNALCUMMEMOIR BEGUN BY AVIGDOR AFTER ARRIVING IN ISRAEL THOUGH HE HAS WORKED AS AMONG OTHER THINGS A MINER PRINTER ROAD BUILDER FARMHAND SHEPHERD COWBOY AND LUMBERJACK AND THOUGH HE HAS LOVED TWO WOMEN AND FATHERED A CHILD BY EACH OF THEM AVIGDOR'S LIFE HAS CENTERED NOT ON THESE OCCUPATIONS AND ATTACHMENTS BUT ON MARXIST POLITICS BORN WITH THE CENTURY AVIGDOR CAME OF AGE ABOUT THE TIME OF THE RUSSIAN REVOLUTION INSPIRED IN HIS YOUTH BOTH BY THE ZIONISM HE SHARED WITH HIS FATHER A TALMUDIC SCHOLAR AND BY A ZEALOUS DEVOTION TO INTERNATIONAL COMMUNISM HE LEFT HIS NATIVE UKRAINE FOR PALESTINE THERE HE WAS ACTIVE IN THE COMMUNIST PARTY AND THE REVOLUTIONARY UNDERGROUND BUT WHEN HE CAME TO RECOGNIZE THE CONFLICT BETWEEN MARXISM AND JEWISH NATIONALISM AND TO FEEL THAT SOVIET RUSSIA WAS A BRAVE NEW WORLD AND ZIONISM A TOOL OF WESTERN IMPERIALISTS HE RETURNED HOME ONLY TO SPEND MOST OF THE STALINIST PERIOD EITHER IN PRISON FOR BEING INSUFFICIENTLY ORTHODOX OR IN THE RED ARMY THERE IS NO CHRONOLOGICAL ORDER TO AVIGDOR'S RECOLLECTIONS HE RECOUNTS HIS MEMORIES HAPHAZARDLY AS THEY ARE TRIGGERED BY CURRENT EVENTS HIS MANNER IS BRISK BLUNT COLLOQUIAL AND DESPITE HIS AVOWALS OF PASSION ODDLY DISPASSIONATE THOUGH NO LONGER AN IDEALIST HE SEES LIFE NEITHER THROUGH A TRAGIC NOR AN ABSURDIST LENS HE BELIEVES IN TRUTH IN UNDERSTANDING HIS PAST IN SERVING HUMANITY'S GREATER GOOD YET HE DOESN'T SEEM OVERBURDENED BY GUILT OVER HIS LONGTIME SUPPORT OF TOTALITARIANISM A DOCUMENTARY MAKER SHELVES A PLANNED PROJECT ABOUT HIS LIFE BECAUSE THE CAMERA LIKES SHARP CONTRADICTIONS VIVID COLORS CLOSED CIRCLES WHILE FOR AVIGDOR LIFE IS A MATTER OF LOOSE ENDS MORAL AMBIGUITIES SHADES OF GRAY TO HIS MIND INDEED THE HISTORY OF SOVIET COMMUNISM IS A STORY NOT OF DEMONS AND SAINTS BUT OF HUMAN SUBTLETIES AND UNCERTAINTIES WHEN HE ADDRESSED AN ISRAELI AUDIENCE ABOUT THE LEADERS OF THE SOVIET DEMOCRACY MOVEMENT A NUMBER OF MY LISTENERS WERE DISPLEASED THAT I HADN'T GIVEN THEM HALOS BUT HAD PORTRAYED THEM AS MODEST UNASSUMING PEOPLE WHOSE CELEBRATED HEROISM GREW OUT OF AN INABILITY AT SOME POINT IN THEIR LIVES TO ACCEPT SOME PIECE OF ARBITRARY INJUSTICE OR SOME TOO BLATANT LIE AVIGDOR QUOTES A FRIEND AS SAYING THAT SHAKESPEARE COULD NEVER HAVE WRITTEN A SOVIET TRAGEDY BECAUSE IT WOULD HAVE BEEN BEYOND THE POWER OF HIS IMAGINATION YET WHAT MR SHAHAM WHO HAS LIVED HIS ENTIRE LIFE ON A KIBBUTZ HAS WRITTEN IS JUST SUCH A TRAGEDY OF A MAN WHOSE MISGUIDED IDEOLOGICAL FERVOR MADE HIM AN INSTRUMENT OF TYRANNY DROVE HIM TO REJECT HIS FAMILY OBLIGATIONS AND HAS LEFT HIM IN HIS OLD AGE STRUGGLING TO FORGE NEW TIES TO CHILDREN AND GRANDCHILDREN TO WHOM HE IS A STRANGER AVIGDOR IS ALSO ONE MIGHT ADD STRUGGLING TO COME TO TERMS WITH THE GOD OF HIS FATHERS ABOUT WHOM HE SAYS ALL MY LIFE I HAVE MAINTAINED THAT HE DOES NOT EXIST AND BEHAVED AS IF HE DOES THERE IS A DEEP IRONY IN THIS FOR IN FACT AVIGDOR THE MARXIST ZEALOT WAS LIKE HIS TALMUDIST FATHER A MAN PROPELLED BY FAITH EVEN THOUGH HIS OWN PARTICULAR FAITH WAS ONE THAT SOUGHT TO EXTINGUISH THE VERY IDEA OF A SPIRITUAL REALM AND A SUPREME BEING AS A YOUNG MEMBER OF THE PARTY FAITHFUL IN PALESTINE FOR INSTANCE HE FELT THAT THE REVOLUTION HAD CHOSEN HIM AND HIS COMRADES TO BE THE JESUS OF OUR TIMES HIS RETURN TO RUSSIA WAS MOTIVATED BY A FRIEND WHO TALKED MARXISM IN THE LANGUAGE OF THE PROPHETS ORIGINALLY PUBLISHED IN HEBREW IN 1981 AND RENDERED INTO A VIGOROUS ENGLISH BY DALYA BILU BONE TO THE BONE IS AN IMPRESSIVELY IMAGINED STUDY OF A MAN WHO COMES OFF AS A REPRESENTATIVE 20THCENTURY FIGURE WITHOUT EVER CEASING TO BE A PLAUSIBLE INDIVIDUAL THE BOOK IS AT ITS MOST EFFECTIVE WHEN IT FOCUSES ON THE THREAT TO CIVILIZED VALUES POSED BY IDEOLOGY THAT DISCOUNTS THE INDIVIDUAL AND VIEWS HUMAN BEINGS AS MEANS OF PRODUCTION COLD SHIVERS RUN DOWN MY SPINE WRITES AVIGDOR WHEN I REMEMBER THINGS THAT I MYSELF SAID IN THOSE YEARS OF PASSIONATE ENTHUSIASM IS IT REALLY POSSIBLE FOR A STUPID MOB OF GREEDY KULAKS TO HOLD BACK THE GALLOPING CHARIOT OF HISTORY' AND THAT WAS ENOUGH TO MAKE ME INDIFFERENT TO THE FATE OF MILLIONS AVIGDOR HAS A COUPLE OF REASONS FOR WRITING HIS MEMOIR ONE OF THEM HE EXPLAINS IS A SOCIALISTBRED SLAVERY TO DOCUMENTS AND ONE IS HIS RECOGNITION OF THE POWER OF WORDS AT THE OLDAGE HOME TO WHICH HE EVENTUALLY MOVES HE'S ASSIGNED TO A ROOM THAT FORMERLY BELONGED TO A POLISH JUDGE READING THROUGH THE MAN'S LIFETIME OF CORRESPONDENCE AVIGDOR COMES TO FEEL THAT HE KNOWS HIM INTIMATELY I COULD HAVE LIVED THE REST OF MY LIFE WITHOUT EVER KNOWING THAT HE HAD EXISTED AVIGDOR NOTES AND YET NOW THAT I AM BREATHING HIS LONELINESS INTO MY LUNGS I CANNOT BANISH HIM FROM MY ROOM MANY A READER OF BONE TO THE BONE MAY FIND AVIGDOR EQUALLY DIFFICULT TO BANISH 9401070078 940107 THURSDAY'S MARKETS INDUSTRIALS PUSH ABOVE 3800 BONDS SURGE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE BROKE THROUGH THE 3800 LEVEL TO ITS SECONDCONSECUTIVE RECORD IN HEAVY TRADING BOND PRICES SURGED AND THE DOLLAR WAS MIXED AFTER CLIMBING MORE THAN 14 POINTS THE INDUSTRIAL AVERAGE RETREATED A BIT TO END WITH A 506POINT GAIN TO A RECORD 380388 STANDARD & POOR'S 500STOCK INDEX EDGED DOWN 043 TO 46712 AND THE NASDAQ COMPOSITE INDEX ADDED 236 TO 78041 THE DOW INDUSTRIALS BOLTED THROUGH THE 3800 LEVEL AFTER THE OPENING BELL CARRIED BY A VIGOROUS ADVANCE IN BOND PRICES INVESTORS CONTINUED TO FAVOR CYCLICAL STOCKS DRIVING THE ECONOMICALLY SENSITIVE DOW JONES TRANSPORTATION AVERAGE TO ITS SECONDSTRAIGHT NEW HIGH THE TRANSPORTS SOARED 2338 TO A RECORD 180221 DURING THE PAST TWO DAYS THE AVERAGE HAS GAINED 27 TRADING VOLUME ON THE NEW YORK STOCK EXCHANGE YESTERDAY WAS THE NINTH HEAVIEST IN HISTORY ANALYSTS SAID LARGE INSTITUTIONAL INVESTORS ARE REENTERING THE MARKET READJUSTING PORTFOLIOS AS THEY OFTEN DO AT THE BEGINNING OF A YEAR BOND PRICES JUMPED EARLY AFTER LABOR SECRETARY ROBERT REICH ESTIMATED IN A TELECONFERENCE THAT TODAY'S EMPLOYMENT REPORT WOULD SHOW A SMALLERTHANEXPECTED GROWTH IN JOBS AFTER THE MARKET MISINTERPRETED HIS REMARK AS FACT THE BUREAU OF LABOR STATISTICS SAID IT WAS JUST AN EDUCATED GUESS AND NOT BASED ON ACTUAL FIGURES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 009 TO 11165 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 3634 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1076 ISSUES ROSE AND 1054 FELL THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17445 MARKS AND 11265 YEN COMPARED WITH 17395 MARKS AND 11290 YEN WEDNESDAY 9401070077 940107 PRESSURE GROWS FOR RELEASE OF IRANCONTRA REPORT WASHINGTON LAWYERS FOR NEWS AND RESEARCH ORGANIZATIONS STEPPED UP PRESSURE FOR THE RELEASE OF INDEPENDENT PROSECUTOR LAWRENCE WALSH'S LONGAWAITED REPORT ON THE IRANCONTRA AFFAIR A THREEJUDGE PANEL SIGNALED LAST MONTH THAT THE FINDINGS WOULD BE RELEASED SOON WITH ONLY MINOR DELETIONS BUT SO FAR THERE HAS BEEN NO ACTION WHILE THE COURT CONSIDERS SEALED MOTIONS ON BEHALF OF FORMER REAGAN ADMINISTRATION OFFICIALS SEEKING TIME TO APPEAL THE ORDER TO THE SUPREME COURT ATTORNEYS FOR THE SOCIETY OF PROFESSIONAL JOURNALISTS REPORTERS COMMITTEE FOR FREEDOM OF THE PRESS AND THE NATIONAL SECURITY ARCHIVE COUNTERED YESTERDAY BY ASKING THE COURT TO MAKE THESE MOTIONS PUBLIC TO FORCE AT LEAST A MORE PUBLIC AIRING OF THE JUSTIFICATION FOR THE DELAY THE ACTION CAME AS LEE HAMILTON D IND CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE WROTE TO THE PANEL ASKING FOR RELEASE OF THE REPORT RELEASING THIS MATERIAL WILL CONTRIBUTE GREATLY TO PUBLIC UNDERSTANDING OF THE AFFAIR SAID REP HAMILTON WHO SERVED AS CHAIRMAN OF THE SPECIAL HOUSE IRANCONTRA INVESTIGATIVE COMMITTEE IN 1987 SUPPRESSION OF THIS MATERIAL COULD DAMAGE RATHER THAN PROTECT INDIVIDUAL REPUTATIONS AND THE PUBLIC RECORD 9401070076 940107 BUSINESS BRIEF TELEPANEL SYSTEMS INC FIRST MAJOR CONTRACT WON FOR SHELFLABELING PRODUCT TELEPANEL SYSTEMS INC TORONTO SAID IT WON A CONTRACT TO INSTALL ITS ELECTRONIC SHELFLABELING SYSTEM IN AS MANY AS 60 GROCERY STORES OWNED BY LOBLAW COS OF TORONTO THE CONTRACT VALUED AT ABOUT 3 MILLION US OVER TWO YEARS MARKS TELEPANEL'S FIRST MAJOR CONTRACT FOR ITS PRODUCT CURRENTLY TELEPANEL'S SYSTEM IS INSTALLED IN 18 STORES IN THE US AND CANADA INCLUDING EIGHT LOBLAW OUTLETS THE TELEPANEL SYSTEM USES RADIO TRANSMITTERS TO SEND DATA TO ELECTRONIC DISPLAY TAGS ON STORE SHELVES PRODUCT PRICE CHANGES ARE MADE AT A CENTRAL COMPUTER LINKED TO THE STORE'S SCANNING SYSTEM ENSURING THAT THE PRICE MARKED IS THE PRICE CHARGED 9401070075 940107 QUARTERLY MUTUAL FUNDS REVIEW WORLD MARKETS CAN'T BE FOREIGN TO US INVESTORS ANYMORE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD IS GETTING SMALLER WHETHER INVESTORS LIKE IT OR NOT THEIR WALLETS ARE INFLUENCED NOT ONLY BY CLOAKROOM CONVERSATIONS IN WASHINGTON BUT BY BULL SESSIONS IN BRUSSELS THEIR MONTHLY STATEMENTS REFLECT THE POISE OR PANIC ON THE TRADING FLOORS OF TOKYO AND LONDON JUST AS AN AMERICANMADE CAR IS INCREASINGLY LIKELY TO CONTAIN PARTS FROM JAPAN OR MEXICO MANY US MUTUAL FUNDS NOW BUY FOREIGN STOCKS AS A MATTER OF COURSE TAKE JANUS FUND FOR EXAMPLE JAMES CRAIG MANAGER OF THE 9 BILLION DENVERBASED FUND IS KNOWN FOR HIS PROWESS AS A PICKER OF US GROWTH STOCKS BUT HE SAYS THE US MARKET IS PICKED OVER I HAVE FOUND WONDERFUL STOCKS IN SWITZERLAND OF JANUS FUND'S 10 BIGGEST STOCK POSITIONS RECENTLY FIVE WERE SWISS IN ADDITION MUTUAL FUNDS SPECIFICALLY CHARTERED TO INVEST OVERSEAS ARE WINNING A BIGGER SHARE OF US INVESTORS' DOLLARS THE MERRILL LYNCH GLOBAL ALLOCATION FUND FOR EXAMPLE FIRST HIT 1 BILLION IN ASSETS AROUND LABOR DAY 1992 ONE YEAR LATER THE FUND CONTAINED 46 BILLION AND TODAY IT IS CLOSING IN ON 6 BILLION FUND MANAGER BRYAN ISON SAYS THAT A YEAR AGO HE WOULD HAVE CONSIDERED SUCH GROWTH ABSOLUTELY IMPOSSIBLE EVEN INDEX FUNDS FUNDS THAT ATTEMPT TO MIMIC THE PERFORMANCE OF THE OVERALL US STOCK MARKET ARE FEELING A JOLT FROM THE FLOW OF AMERICAN INVESTORS' MONEY ABROAD IN 1993 VANGUARD INDEX TRUST500 PORTFOLIO THE US'S LARGEST INDEX FUND WAS UP 99 THE THIRDLOWEST RETURN AMONG THE COUNTRY'S 25 BIGGEST STOCK FUNDS ONE REASON OTHER BIG STOCK FUNDS WANDERED FAR AFIELD FROM THE US AND IT PAID OFF MANY OF THE LARGE FUNDS HAVE HAD SUBSTANTIAL BETS INTERNATIONALLY SAYS GEORGE U SAUTER THE VANGUARD MANAGER WHO RUNS THE INDEX FUND HERE'S WHAT THE MANAGERS OF FIVE OF THE US'S JUMBO FUNDS ARE SAYING AT THE MOMENT ABOUT THE INTERNATIONAL TREND AND OTHER INVESTMENT ISSUES JANUS FUND'S MR CRAIG SAYS THAT SWISS COMPANIES USED TO BE INDIFFERENT OR EVEN HOSTILE TO US INVESTORS COMPANY OFFICIALS WOULDN'T MEET WITH US EVEN THOUGH WE WERE SHAREHOLDERS HE RECALLS DISCLOSURE OF CORPORATE DEVELOPMENTS AND STRATEGIES WAS SKETCHY BUT ALL OF THAT HAS CHANGED IN THE PAST COUPLE OF YEARS HE SAYS COMPANIES IN SWITZERLAND HAVE COME TO REALIZE THE VALUE OF TAPPING THE US MARKET THEY NOT ONLY WILL MEET WITH AMERICAN INVESTORS THEY COME TO THE US TO SEEK THEM OUT ENGLISHLANGUAGE VERSIONS OF SWISS ANNUAL REPORTS ARE BECOMING COMMON MR CRAIG HAS BIG POSITIONS IN A HANDFUL OF SWISS STOCKS INCLUDING ROCHE HOLDING SCHWEIZERISCHER BANKVEREIN CREDIT SUISSE AND SCHWEIZENSCHE BANK GESELLSCHAFT HIS FAVORITE IS SWISS RE WHICH DEALS BOTH IN REINSURANCE HENCE ITS NAME AND CONVENTIONAL INSURANCE SWISS RE HAS BEEN GAINING MARKET SHARE IN EUROPE PARTLY BECAUSE OF RECENT TROUBLES AT LLOYD'S OF LONDON HE SAYS MR CRAIG IS SKEPTICAL ABOUT THE RECENT TRENDINESS OF STOCKS FROM DEVELOPING COUNTRIES SUCH AS COLOMBIA AND BRAZIL THEY HAVE WORKED GREAT HE SAYS BUT US INVESTORS MAY BOLT IF THE US MARKET RUNS INTO TURBULENCE AND IN MANY CASES THERE'S NO STRONG HOME MARKET TO SUPPORT THESE FARFLUNG STOCKS AMONG US STOCKS HIS BIGGEST HOLDING IS WALMART STORES I'VE REBUILT MY WALMART POSITION AS THE STOCK FELL TO 25 FROM 35 HE SAYS HE THINKS THE SAM'S WAREHOUSESTORE DIVISION WHICH HAD BEEN A WEAK POINT WILL BECOME A STRONG POINT AS TWO MAJOR COMPETITORS COSTCO AND PRICE HAVE MERGED TO FORM PRICE/COSTCO AND A THIRD THE PACE UNIT OF KMART HAS SOLD MANY OF ITS STORES TO WALMART VANGUARD INDEX THE VANGUARD INDEX TRUST500 PORTFOLIO WHICH CLOSELY TRACKS THE PERFORMANCE OF THE STANDARD & POOR'S 500STOCK INDEX OUTPERFORMED MOST MUTUAL FUNDS IN 1988 1989 AND 1990 SINCE THEN IT HAS OUTPERFORMED ONLY 45 TO 47 OF THE FIELD THAT'S MOSTLY BECAUSE SMALL STOCKS AND RECENTLY FOREIGN STOCKS HAVE OUTPACED THE BIG US STOCKS IN THE INDEX MR SAUTER THE FUND'S MANAGER THINKS SMALL STOCKS MIGHT CONTINUE TO DO WELL ACCORDINGLY HE URGES INVESTORS TO CONSIDER A SISTER FUND THE VANGUARD TOTAL STOCK MARKET PORTFOLIO AS FOR FOREIGN STOCKS MR SAUTER SAYS HE ISN'T AT ALL SURE THAT THEIR RECENT HOT STREAK WILL CONTINUE MANY PEOPLE WHO HOLD EUROPEAN STOCKS EXPECT THAT INTEREST RATES WILL BE LOWERED IN EUROPE THAT WOULD HELP STOCKS ALL RIGHT SAYS MR SAUTER BUT IT COULD ALSO CAUSE EUROPEAN CURRENCIES TO DECLINE AGAINST THE DOLLAR SHAVING THE FOREIGN PORTFOLIOS' VALUE AFTER TRANSLATION TO DOLLARS THE ARGUMENT FOR INDEXING IS THAT IT IS NEARLY IMPOSSIBLE TO PREDICT IN ADVANCE WHICH MUTUAL FUNDS WILL SHOW ABOVEAVERAGE PERFORMANCE BECAUSE INDEX FUNDS DO VERY LITTLE TRADING OF STOCKS THEY HAVE LOW ADMINISTRATIVE COSTS AND GENERATE RELATIVELY SMALL TAX OBLIGATIONS IN LIGHT OF THAT A CONVENTIONAL FUND NEEDS TO BEAT AN INDEX FUND BY ONE PERCENTAGE POINT EVERY YEAR TO COME OUT EVEN MR SAUTER SAYS SOUND SMALL THAT'S ACTUALLY HUGE HE SAYS OVER THE 10 YEARS THROUGH DECEMBER 1992 ONLY 16 FUNDS OUT OF 205 STUDIED BY VANGUARD MANAGED TO BEAT THE WILSHIRE 5000 A BROAD STOCK MARKET INDEX BY ONE PERCENTAGE POINT A YEAR AND AN INVESTOR MIGHT NOT BE ABLE TO PICK THOSE 16 FUNDS IN ADVANCE FIDELITY ASSET MANAGER AN ASSET ALLOCATION FUND CHANGES ITS BLEND OF INVESTMENTS STOCKS BONDS AND CASH IN THE US AND ABROAD ACCORDING TO MANAGER ROBERT BECKWITT'S VIEW OF WHERE THE BEST RATIO OF RISK TO REWARD LIES MR BECKWITT CURRENTLY HAS ABOUT HALF OF HIS STOCK AND BOND PORTFOLIO OUTSIDE THE US FOREIGN INVESTING STILL HAS A LOT OF OPPORTUNITIES HE SAYS ENOUGH TO ENCOURAGE ME TO TAKE MONEY THAT WOULD NORMALLY BE IN THE US AND MOVE IT OVERSEAS HIS FAVORITE FOREIGN STOCK MARKETS NOW ARE BRITAIN AND MEXICO IN BRITAIN HE SAYS YOU'VE GOT A GREAT FUNDAMENTAL PICTURE OF LOW INFLATION INTEREST RATES THAT WILL BE LOWERED MORE AND ECONOMIC GROWTH THE MARKET SHOULD BE VERY PLEASANT MEXICO'S CENTRAL BANK HAS LARGELY WON ITS LONGTIME WAR AGAINST RAMPANT INFLATION MR BECKWITT SAYS SO IT CAN AFFORD TO TAKE ITS FOOT OFF THE BRAKE AND ALLOW THE COUNTRY'S MONEY SUPPLY TO GROW MORE FREELY ALSO HE SAYS MEXICO IS ONE OF THE CHEAPER MARKETS AROUND WITH MANY STOCKS SELLING FOR LESS THAN 10 TIMES THE COMPANIES' EARNINGS THE US STOCK MARKET HE SAYS ISN'T CHEAP BUT HAS SOME ATTRACTIVE COMPANIES WITHIN IT NOW THAT EMPLOYERS ARE LIKELY TO HAVE TO PAY MORE FOR THEIR WORKERS' HEALTH CARE HE THINKS COMPANIES WILL TRY TO REPLACE LABOR WITH CAPITAL SO HE'S BUYING COMPUTEREQUIPMENT MAKERS SUCH AS COMPAQ COMPUTER INTERNATIONAL BUSINESS MACHINES CISCO SYSTEMS AND CABLETRON SYSTEMS HE ALSO LIKES JUNK BONDS CALLING THEM THE CHEAPEST FINANCIAL ASSET IN THE UNITED STATES THOUGH HE CAUTIONS THEY SHOULD BE BOUGHT ONLY AS PART OF A DIVERSIFIED PORTFOLIO MR ISON OF MERRILL LYNCH GLOBAL ALLOCATION FUND IS CARRYING A HEAVIERTHANUSUAL CASH POSITION AND IS LIGHTER THAN USUAL IN STOCKS ONLY 37 I DON'T HAVE A STRONG FEELING THAT STOCKS WILL DECLINE MR ISON SAYS RATHER HIS CAUTIOUS STANCE STEMS FROM WHAT HE CALLS A DISTINCT SHORTAGE OF BARGAINS IN STOCK MARKETS AROUND THE GLOBE FOR THE PAST COUPLE OF YEARS WE GENUINELY DID PERCEIVE THERE TO BE BARGAINS IN EUROPEAN STOCKS HE SAYS I HAVE TO SAY THAT'S LESS TRUE TODAY BECAUSE EUROPEAN STOCK MARKETS HAVE BEEN RALLYING SINCE THE FALL OF 1992 HE BELIEVES INVESTORS HAVE PAID IN ADVANCE FOR A EUROPEAN ECONOMIC RECOVERY THAT'S STILL ON THE HORIZON IN THE US PHILIP MORRIS IS MR ISON'S BIGGEST STOCK POSITION THE STOCK FELL FROM A PEAK OF 77625 TO A TROUGH OF 45 LAST YEAR AS THE COMPANY SLASHED THE PRICE OF MARLBORO CIGARETTES AFTER THE HIT IT TOOK IT SIMPLY GOT TO PRICES WHERE WE FELT THE MARKET WAS PAYING CLOSE TO NOTHING FOR THE DOMESTIC TOBACCO BUSINESS RECALLS MR ISON AT ITS CURRENT PRICE OF 58375 HE CALLS PHILIP MORRIS A REASONABLE HOLD ALSO BATTERED LAST YEAR WERE THE DRUG STOCKS MR ISON MOVED INTO THE SEGMENT IN THE SPRING AND IS HOLDING BRISTOLMYERS SQUIBB SMITHKLINE BEECHAM MERCK AND AMERICAN HOME PRODUCTS FINANCIAL STOCKS ALSO INTEREST MR ISON IN THE PAST FOUR MONTHS THESE STOCKS HAVE FALLEN AS THE MARKET GOT A WHIFF OF HIGHER INTEREST RATES MR ISON DOES BELIEVE THAT HIGHER RATES ARE A THREAT BUT IN HIS VIEW STOCKS SUCH AS CHEMICAL BANKING FIRST UNION AND STUDENT LOAN MARKETING ASSOCIATION SIMPLY GOT TO PRICES THAT WERE ATTRACTIVE WOLODYMYR WRONSKYJ DREYFUS FUND'S MANAGER THINKS 1994 WILL BE A DECENT YEAR IN THE STOCK MARKET BUT NOTHING SPECTACULAR THE US ECONOMY WILL PROBABLY CONTINUE AT THE SAME PACE AS IN 1993 HE SAYS IT IS DIFFICULT TO SEE A MUCH STRONGER PICKUP FOR THAT YOU WOULD NEED BETTER FOREIGN ECONOMIES HE ALSO FIGURES THAT HIGHER TAXES WILL RETARD US GROWTH MR WRONSKYJ IS MAKING A BIG BET ON THE AUTO INDUSTRY INCLUDING CHRYSLER FORD MOTOR TRW WHICH MAKES AIR BAGS EATON STRONG IN TRUCK PARTS AND VARITY ANTISKID BRAKES HIS FAVORITE IS CHRYSLER WHICH HE SAYS IS ROLLING OUT GOOD PRODUCTS THAT PEOPLE ARE BUYING AMONG STOCKS THAT ARE SOMEWHAT BEATEN UP HE FAVORS COMPUTER MAKER HEWLETTPACKARD AND CHIP MAKER INTEL HE IS ALSO FOND OF DIAL CONSOLIDATED RAIL AND COLGATEPALMOLIVE 9401070074 940107 REVENUESHARING PLAN FOR BASEBALL TEAMS FAILS ROSEMONT ILL MAJOR LEAGUE BASEBALL OWNERS FELL ONE VOTE SHORT OF ENACTING A REVENUESHARING PLAN FOLLOWING A SEVENHOUR MEETING HERE TWENTY OF THE 28 TEAMS BACKED A PLAN PROPOSED BY THE PLAYER RELATIONS COMMITTEE THE OWNERS' LABOR ARM SHORT OF THE 75 MAJORITY REQUIRED FOR PASSAGE THE OWNERS WILL TRY AGAIN AT THEIR NEXT ROUND OF MEETINGS SCHEDULED TO BEGIN IN FORT LAUDERDALE FLA JAN 17 I'D BE A LIAR IF I DIDN'T SAY I'D HOPED TO COME TO A CONCLUSION AND GET ON TO THE MAIN EVENT OF NEGOTIATING WITH THE UNION SAID RICHARD RAVITCH HEAD OF THE COMMITTEE BUT HE ADDED I'M STILL AN OPTIMIST THE OLD LABOR CONTRACT EXPIRED DEC 31 THE OWNERS MUST APPROVE A REVENUESHARING PLAN TO PUT FORTH A SALARYCAP PROPOSAL TO THE PLAYERS IN ADDITION SMALLMARKET CLUBS THAT ARE STRAPPED FOR REVENUE HAVE PRESSED FOR AID FROM BIGMARKET TEAMS AS THE REVENUE GAP BETWEEN THE TWO HAS GROWN THE BIGMARKET TEAMS OFFERED THEIR OWN REVENUESHARING MEASURE WHICH GARNERED 11 VOTES IT PROPOSED TO TRIPLE THE AMOUNT OF MONEY NOW TRANSFERRED AMONG CLUBS ACCORDING TO BOSTON RED SOX GENERAL PARTNER JOHN HARRINGTON CURRENTLY REVENUESHARING IS RESTRICTED TO SPLITTING GATE RECEIPTS AND CABLETV INCOME 9401070073 940107 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN UNION RESIDENTS CONTINUE TO GET HASSLED AT BORDERS A YEAR AFTER THE 12COUNTRY TRADE BLOC BECAME A UNIFIED MARKET A CITIZENRIGHTS LOBBY SAID EURO CITIZEN ACTION SERVICE REPORTED THAT TRAVELERS IN THE FORMER EUROPEAN COMMUNITY STILL FACE BARRIERS TO THEIR FREEDOM OF MOVEMENT CUSTOMS POSTS REMAIN IN PLACE TRAIN FERRY AND AIRPLANE PASSENGERS ARE ASKED TO SHOW PASSPORTS AND NONEU NATIONALS WHO LEGALLY RESIDE IN ONE MEMBER STATE OFTEN MUST GET A VISA TO VISIT ANOTHER WORSE STILL THE GROUP SAID THE NINE EU STATES THAT PLEDGED UNDER THE TREATY TO ABOLISH INTERNAL BORDER CONTROLS MISSED THREE DEADLINES LAST YEAR AND SEEM LIKELY TO BREAK THEIR LATEST PLEDGE TO PUT THE ACCORD INTO EFFECT BY FEB 1 THUS THE LOBBY REVIVED ITS CAMPAIGN TO PRESS FOR A FRONTIERLESS BLOC BY GATHERING MORE ANECDOTAL EVIDENCE OF TRAVELERS' TANGLES AT THE BORDER SUCH PROBLEMS STEM PARTLY FROM CUSTOMS AGENCIES' EFFORTS TO FIGHT ILLEGAL IMMIGRATION AND SMUGGLING CHINA MOVED TO COUNTER A STRATEGY USED BY HONG KONG WOMEN TO OBTAIN CANADIAN CITIZENSHIP FOR THEIR CHILDREN BEIJING'S CONSULATE IN VANCOUVER SAID THAT UNDER A RECENT POLICY CHANGE HONG KONG RESIDENTS WILL BE BARRED FROM DUAL CITIZENSHIP WHEN CHINA TAKES CONTROL OF THE BRITISH COLONY IN 1997 NONRESIDENT BIRTHS IN THE VANCOUVER AREA TOTAL ABOUT 300 A YEAR OFTEN TO HONG KONG WOMEN WITH TOURIST VISAS CHILDREN BORN TO FOREIGNERS ARE ELIGIBLE FOR CANADIAN CITIZENSHIP AND AT AGE 18 MAY SPONSOR THEIR PARENTS FOR CITIZENSHIP THIS POLICY HAS BEEN USED BY RESIDENTS OF HONG KONG AS INSURANCE AGAINST POTENTIAL REPRESSION ONCE SOVEREIGNTY REVERTS TO CHINA THE PARIS SUBURB OF ISSYLESMOULINEAUX WILL INSTALL BRAILLE TERMINALS LINKED TO EIGHT TRAFFIC LIGHTS TO HELP BLIND PEOPLE CROSS BUSY INTERSECTIONS PUSHING A BUTTON ON THE DEVICE TURNS THE TRAFFIC SIGNAL RED WHEN THE BUTTON VIBRATES INDICATING A PEDESTRIAN MAY SAFELY CROSS THE TERMINALS ALSO ALLOW THE BLIND TO READ THE NAME OF THE STREET THE DIRECTION OF TRAFFIC AND THE STREET NUMBER OF THE NEAREST BUILDING CHINA'S XINHUA NEWS AGENCY DIDN'T HINT HOW IT KNOWS BUT SAID THE NUMBER OF CARS AND VANS SMUGGLED INTO THE COUNTRY LAST YEAR JUMPED 11 TO 100000 BRAZEN THIEVES HAVE BEEN SEEN DRAGGING VEHICLES ON HUGE FLOATS BEHIND SPEEDBOATS IMPORTED CARS ARE PRIZED AS STATUS SYMBOLS BY NEWLY RICH ENTREPENEURS IN THE BOOMING ECONOMY YET HIGH TARIFFS MAKE SMUGGLED CARS ATTRACTIVE EVEN AFTER CHINA ON JAN 1 SHARPLY CUT TAXES ON CARS LEVIES STILL DOUBLE THE PRICE OF AN IMPORTED AUTO MOREOVER LOOPHOLES FOR AVOIDING TAXES ON LUXURY CARS WERE CLOSED AND MONETARY REFORM THAT DEVALUED THE CURRENCY MADE IMPORTS MORE EXPENSIVE PROPOSALS IN 1993 FOR MANUFACTURING PROJECTS IN MALAYSIA SHRANK FOR THE THIRD CONSECUTIVE YEAR BOTH IN TERMS OF THE TOTAL NUMBER AND ESTIMATED VALUE THE GOVERNMENT RECEIVED 802 APPLICATIONS TO SET UP MANUFACTURING OPERATIONS DOWN 68 FROM A YEAR EARLIER AND THEIR VALUE TOTALED 694 BILLION OFF 20 PROPOSED FOREIGN INVESTMENT IN MANUFACTURING SANK 38 TO 282 BILLION ATTRIBUTED MAINLY TO STIFFER COMPETITION FOR FOREIGN CAPITAL AND TROUBLES IN MAJOR GLOBAL ECONOMIES DOMESTIC CAPITAL INVESTMENT WAS FLAT AS INDUSTRIES PURSUED FEWER AND SMALLER EXPANSIONS CHINA'S CENTRAL BANK AUTHORIZED CIRCULATION OF THE HONG KONG DOLLAR IN TWO SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE THE PEOPLE'S BANK OF CHINA SAID THE BRITISH TERRITORY'S DOLLAR SHOULD BECOME THE MAIN CURRENCY IN SHENZHEN AND ZHUHAI BECAUSE THE ZONES IN SOUTHERN CHINA NEAR HONG KONG REQUIRE A DIFFERENT MONETARY SYSTEM THAN THAT USED IN INLAND CITIES THE HONG KONG UNIT ALREADY ISWIDELY USED BY BUSINESSES AND RESIDENTS IN THE ZONES WHICH HAVE HELPED PACE CHINA'S ECONOMIC BOOM IN RECENT YEARS US COMPANIES SPELLED OUT THEIR PREFERENCES FOR ANY EUROPEAN UNION LEGISLATION TO INVOLVE WORKERS IN CORPORATE PLANNING IN A PAPER SENT TO THE COMMISSION OF THE EU FORMERLY THE EUROPEAN COMMUNITY AN AMERICAN CHAMBER OF COMMERCE COMMITTEE OUTLINED PRINCIPLES FOR ANY EU RULES REQUIRING MULTINATIONAL COMPANIES TO CONSULT WORKERS ABOUT THE EMPLOYERS' PLANS THE PANEL WHICH REPRESENTS EUROPEAN UNITS OF MAJOR US COMPANIES OPPOSES EU LEGISLATION ON THE MATTER ARGUING THAT VOLUNTARY AND NONREGULATED METHODS ARE THE MOST EFFECTIVE WAYS OF FOSTERING WORKER PARTICIPATION BUT THE COMMITTEE SEEMED RESIGNED TO SOME FORM OF REGULATION EITHER THROUGH EU LEGISLATION OR A PANEUROPEAN ACCORD BETWEEN EMPLOYERS AND UNIONS THE PANEL SAID ANY EUROPEAN INITIATIVE SHOULD PROVIDE A BROAD FRAMEWORK LEAVING DETAILS TO BE WORKED OUT AT THE COMPANY LEVEL TO IMPROVE THE PHILIPPINES' IMAGE AQUINO AIRPORT IS URGING ITS EMPLOYEES TO REPLACE THEIR SNEER AND ZOMBIE LOOKS WITH SMILES THE GOVERNMENTRUN MANILA AIRPORT WHICH HAS A REPUTATION FOR INEFFICIENCY AND CORRUPTION BEGAN A CAMPAIGN TO TEACH PERSONNEL PROPER ETIQUETTE TOWARD PASSENGERS A BRITISH CONSUMER GROUP DEMANDED CLEARER FOOD LABELING BY PRODUCERS AND RESTAURANTS FOLLOWING THE COUNTRY'S FIFTH KNOWN DEATH IN THE PAST YEAR FROM AN ALLERGIC REACTION TO PEANUTS 9401070072 940107 BUSINESS BRIEF MAGNETEK INC CHARGE TO RESULT IN LOSS FOR FISCAL SECOND QUARTER MAGNETEK INC SAID THAT IT WILL REPORT A LOSS FOR THE SECOND QUARTER ENDED DEC 31 RESULTING FROM A RESTRUCTURING CHARGE THAT ISN'T EXPECTED TO EXCEED 60 MILLION AS PART OF THE RESTRUCTURING WHICH THE COMPANY ANNOUNCED ONLY IN BROAD TERMS LAST OCTOBER MAGNETEK IN LOS ANGELES YESTERDAY SAID IT HAS IDENTIFIED SIX OF ITS BUSINESS GROUPS AS CANDIDATES FOR DIVESTITURE THE OPERATIONS RANGING FROM PLANTS THAT MANUFACTURE HIGHVOLTAGE ELECTRIC COILS TO FACILITIES THAT PRODUCE POWER CONVERTERS MEDIUMPOWER TRANSFORMERS AND INDUSTRIAL BRAKES ACCOUNT FOR ABOUT 29 OF THE COMPANY'S ANNUAL 15 BILLION IN REVENUE THE RESTRUCTURING IS EXPECTED TO BE COMPLETED BY SEPTEMBER SOME OF THE OPERATIONS MAY BE SOLD FOR LESS THAN BOOK VALUE THE COMPANY INDICATED 9401070071 940107 MARKETING BRIEF MEDIA GENERAL INC FIRM TO SELL NEWSPAPER STAKE IN 627 MILLION TRANSACTION MEDIA GENERAL INC RICHMOND VA SAID IT AGREED TO SELL ITS 40 STAKE AND ITS SERIES A AND SERIES C PREFERRED STOCK IN GARDEN STATE NEWSPAPERS TO AN ENTITY CONTROLLED BY RICHARD B SCUDDER AND WILLIAM DEAN SINGLETON FOR ABOUT 627 MILLION MESSRS SINGLETON AND SCUDDER EXECUTIVES AT CLOSELY HELD MEDIANEWS GROUP IN HOUSTON ALREADY CONTROL 60 OF THE GARDEN STATE COMMUNITY NEWSPAPERS CHAIN THIS WEEK MEDIA GENERAL SAID GARDEN STATE NEWSPAPERS FAILED TO REDEEM THE SERIES A AND SERIES C PREFERRED STOCK BY JAN 1 AS REQUIRED UNDER THE ISSUE'S TERMS MEDIA GENERAL SAID IT WANTED TO SELL ITS GARDEN STATE NEWSPAPERS STAKE OR BUY THE REST OF THE CHAIN MEDIA GENERAL ALSO AGREED TO EXCHANGE ITS SERIES B PREFERRED STOCK IN GARDEN STATE NEWSPAPERS FOR THE 9 PREFERRED STOCK IN DENVER NEWSPAPERS INC HELD BY GARDEN STATE NEWSPAPERS MEDIA GENERAL STILL WOULD HOLD A WARRANT TO BUY 40 OF THE COMMON EQUITY OF DENVER NEWSPAPERS WHICH OWNS THE DENVER POST 9401070070 940107 MARKETING & MEDIA CDS OUTSELL CASSETTES IN '93 FOR FIRST TIME IN BUSINESS FOR THE FIRST TIME IN THE MUSIC BUSINESS COMPACT DISKS OUTSOLD CASSETTES IN 1993 ACCORDING TO YEAREND DATA RELEASED BY SOUNDSCAN INC A POINTOFSALE INFORMATION SYSTEM OVERALL UNIT SALES OF ALBUMS AND SINGLES ON ALL FORMATS WERE UP ABOUT 427 LAST YEAR WITH ABOUT 683 MILLION UNITS SOLD IN THE US COMPARED WITH 655 MILLION IN 1992 SOUNDSCAN SAID THIS INCREASE TRANSLATED TO A 10 TO 12 INCREASE IN SALES REVENUE TO THE MUSIC INDUSTRY IT'S A HEALTHY BUSINESS CONSIDERING THE ECONOMY'S NOT SO GREAT SAID MIKE SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN BASED IN HARTSDALE NY SOUNDSCAN WHICH MONITORS STORES ACCOUNTING FOR ABOUT 70 OF US SALES DOESN'T HAVE COMPLETE FIGURES ON 1991 MUSIC DISTRIBUTORS BEGAN SHIPPING MORE CDS THAN CASSETTES DURING THE FOURTH QUARTER OF 1992 BUT CONSUMERS DIDN'T RESPOND UNTIL THE NEXT YEAR OVERALL SALES OF ALBUM CASSETTES IN 1992 WERE 2996 MILLION UNITS OR 55 OF SALES COMPARED WITH 2482 MILLION UNITS OR 45 OF CDS IN 1993 3043 MILLION CDS OR 53 WERE SOLD COMPARED WITH 2677 MILLION CASSETTES OR 47 THE SALE OF SINGLES WAS STILL STRONG WITH 1108 MILLION UNITS SOLD COMPARED WITH 1073 THE YEAR BEFORE MOST OF THESE SINGLES WERE SOLD IN CASSETTE FORM 9401070069 940107 BUSINESS BRIEF MYCOGEN CORP AGRIGENETICS STAKE BOOSTED LOSS FOR QUARTER YEAR SEEN MYCOGEN CORP SAID IT WOULD TAKE FOURTHQUARTER CHARGES OF 34 MILLION RELATED TO ITS ACQUISITION OF AN ADDITIONAL 295 STAKE IN A JOINT VENTURE IT OWNS WITH LUBRIZOL CORP THE ACQUISITION FOR 7 MILLION IN CASH AND TWO MILLION SHARES OF MYCOGEN STOCK INCREASES MYCOGEN'S STAKE IN THE PARTNERSHIP MYCOGEN PLANT SCIENCES TO 80 THE TWO COMPANIES AGREED IN 1992 TO DEVELOP CROP VARIETIES GENETICALLY ENGINEERED TO BE INSECTRESISTANT AND LUBRIZOL SWAPPED A MAJORITY STAKE IN ITS AGRIGENETICS SEED UNIT FOR CASH AND STOCK VALUED AT 135 MILLION NOW MYCOGEN BASED IN SAN DIEGO SAYS IT HAS AGREED TO PURCHASE LUBRIZOL'S REMAINING STAKE OVER TIME LUBRIZOL'S OWNERSHIP STAKE IN MYCOGEN INCREASES TO ABOUT 32 FROM ABOUT 25 MYCOGEN SAID IT WILL REPORT AN OPERATING LOSS FOR THE QUARTER AND THAT COMBINED WITH THE ONETIME ITEMS THE COMPANY'S NET LOSS FOR 1993 WILL SURPASS THAT OF 1992 WHEN A 304 MILLION LOSS WAS POSTED IN NASDAQ STOCK MARKET TRADING YESTERDAY MYCOGEN SHARES FELL 50 CENTS TO 1150 9401070068 940107 BUSINESS BRIEF CIRCUIT CITY SHARES FALL 20 ON FORECAST OF FLAT YEARLY NET RICHMOND VA CIRCUIT CITY STORES INC REPORTED STRONG SALES GAINS FOR THE CHRISTMAS SEASON BUT THE ELECTRONICS RETAILER'S STOCK PLUNGED 20 ON THE NEWS THAT A PREVIOUSLY ANNOUNCED EXPANSION PLAN AND MORE PRICE CUTTING WOULD RESULT IN VIRTUALLY NO EARNINGS GROWTH IN FISCAL 1995 THE COMPANY THE NATION'S LARGEST SPECIALTY RETAILER OF BRANDNAME CONSUMER ELECTRONICS AND MAJOR APPLIANCES REPORTED THAT DECEMBER SALES AT STORES OPEN ONE YEAR OR LONGER JUMPED 8 FROM THE SAME PERIOD IN 1992 BETTER THAN THE COMPANY HAD EXPECTED TOTAL SALES INCREASED 25 TO 7138 MILLION FROM DECEMBER 1992 HOWEVER THE COMPANY'S SHARES FELL AFTER IT ANNOUNCED THAT IT DOESN'T EXPECT EARNINGS GROWTH IN FISCAL 1995 WHICH BEGINS MARCH 1 ANALYSTS HAD BEEN ESTIMATING THAT EARNINGS FOR FISCAL 1994 ENDING FEB 28 WILL BE ABOUT 140 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CIRCUIT CITY'S STOCK FELL 450 TO 17625 IN HEAVY TRADING DESPITE STRONG EARNINGS OF LATE CIRCUIT CITY'S SHARES HAVE FALLEN RECENTLY FROM A HIGH IN THE LAST YEAR OF ABOUT 33 BECAUSE OF CONCERNS OVER GROWING COMPETITION IN ELECTRONICS RETAILING THE STOCK OF RIVAL BEST BUY CO ALSO WAS BATTERED YESTERDAY TUMBLING 750 OR 16 TO CLOSE AT 3975 IN HEAVY BIG BOARD TRADING RICHARD L SHARP CIRCUIT CITY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID YESTERDAY THAT THIS YEAR HIS COMPANY PLANS A MORE AGGRESSIVE MARKETING APPROACH TO INCREASE ITS MARKET SHARE WHICH WILL INCLUDE LOWER PRICES ESPECIALLY IN COMPETITIVE MARKETS CIRCUIT CITY IS CURRENTLY LOCKED IN A BATTLE FOR NEW MARKETS WITH BEST BUY AND OTHER ELECTRONICSSTORE CHAINS MR SHARP SAID CIRCUIT CITY EXPECTS THAT REDUCTIONS IN GROSS PROFIT MARGINS AND INCREASED COSTS ASSOCIATED WITH THE ACCELERATION IN STORE EXPANSION PLANS WILL RESULT IN NO MATERIAL EARNINGS GROWTH IN FISCAL 1995 LAST MONTH CIRCUIT CITY SAID IT PLANNED TO OPEN 180 NEW SUPERSTORES IN THE NEXT THREE YEARS 9401070067 940107 BUSINESS BRIEF DELTA AIR LINES PETITION IS FILED WITH DOT ON LONDON ROUTE DECISION DELTA AIR LINES SAID IT FILED A PETITION WITH THE FEDERAL APPEALS COURT IN THE DISTRICT OF COLUMBIA CHALLENGING A DECISION BY THE DEPARTMENT OF TRANSPORTATION TO GIVE AMR CORP'S AMERICAN AIRLINES TWO NEW ROUTES TO LONDON THE DOT MOVE LAST NOVEMBER WAS A BLOW TO DELTA AND TO SALT LAKE CITY WHERE THAT AIRLINE HAD PROPOSED ESTABLISHING ONE OF THE ROUTES AT ITS WESTERNMOST HUB INSTEAD THE DOT SELECTED NASHVILLE TENN AND THE RALEIGHDURHAM AREA OF NORTH CAROLINA AMERICAN AIRLINES PLANS TO BEGIN FLYING BOTH ROUTES MAY 26 LAST MONTH DELTA APPEALED THE DOT DECISION BUT THE AGENCY REJECTED THAT REQUEST AS PREVIOUSLY REPORTED THE DOT SAID IT CHOSE THE TWO MARKETS BECAUSE EACH SERVES MORE PEOPLE THAN SALT LAKE CITY BUT IN A STATEMENT YESTERDAY DELTA SAID THE DOT'S CHOICE IGNORES THE LACK OF LONDON SERVICE IN SALT LAKE CITY 9401070066 940107 ECONOMY UNDERFUNDING OF PENSIONS ROSE 40 IN '92 US SAYS WASHINGTON UNDERFUNDING IN FEDERALLY INSURED PENSION PLANS CLIMBED NEARLY 40 TO AN ESTIMATED 53 BILLION IN 1992 INCREASING THE NEED FOR LEGISLATION TO FORCE A NARROWING OF THE FUNDING GAPS THE GOVERNMENT INSURER SAID PENSION BENEFIT GUARANTY CORP EXECUTIVE DIRECTOR MARTIN SLATE SAID THAT WHILE THE MAJORITY OF SINGLEEMPLOYER PENSION FUNDS INSURED BY THE AGENCY ARE FUNDED FULLY THE FIGURE SENDS A CLEAR SIGNAL THAT WE HAVE A GROWING PROBLEM DESPITE THE PBGC'S OWN DEFICIT OF 27 BILLION IN 1992 HOWEVER THE AGENCY HAS AMPLE ASSETS TO PAY BENEFITS FOR MANY YEARS TO COME HE SAID ABOUT 72 OF THE UNDERFUNDING IS IN PLANS SPONSORED BY 50 COMPANIES AS PREVIOUSLY REPORTED ESPECIALLY IN THE STEEL AUTO TIRE AND AIRLINE INDUSTRIES LEGISLATION PROPOSED LATE LAST YEAR BY THE CLINTON ADMINISTRATION WOULD REQUIRE EMPLOYERS WITH UNDERFUNDED PLANS TO SPEED UP CONTRIBUTIONS TO THEIR PENSION FUNDS IT ALSO WOULD BOOST INSURANCE PREMIUMS FOR PLANS THAT POSE THE GREATEST RISK OF FAILURE THAT WOULD REQUIRE THE PBGC TO STEP IN AND PROVIDE LIMITED PENSION BENEFITS FOR THE COMPANY'S CURRENT AND FUTURE RETIREES ABOUT THREEFOURTHS OF THE UNDERFUNDING WHICH ROSE FROM 38 BILLION IN 1991 IS IN PLANS SPONSORED BY FINANCIALLY HEALTHY COMPANIES AND DOESN'T NECESSARILY PRESENT A RISK TO PLAN PARTICIPANTS OR THE PBGC THE AGENCY SAID BUT ABOUT 14 BILLION IN UNDERFUNDING IN THE REMAINING PLANS INVOLVES ABOUT 12 MILLION WORKERS AND RETIREES AT COMPANIES WITH BELOW INVESTMENTGRADE RATINGS THE PBGC SAID 9401070065 940107 PEPPERAND SALT TODAY A MILLIONAIRE I WISH THAT I COULD THINK OF IT MY COMPLIMENTS TO THE CEO 9401070064 940107 BUSINESS BRIEF CARNIVAL CORP CRUISE LINE CONCERN'S PROFIT ROSE 16 IN ITS 4TH QUARTER CARNIVAL CORP SAID FISCAL FOURTHQUARTER EARNINGS ROSE 16 REFLECTING CONTINUED IMPROVEMENT IN REVENUE YIELDS NET INCOME ROSE TO 501 MILLION OR 35 CENTS A SHARE FROM 431 MILLION OR 31 CENTS A SHARE FOURTHQUARTER REVENUE CLIMBED 47 TO 3257 MILLION FROM 311 MILLION IN THE 1992 FOURTH QUARTER FOR THE FISCAL YEAR ENDED NOV 30 NET INCREASED 15 TO 3182 MILLION OR 225 A SHARE FROM 2766 MILLION OR 196 A SHARE A YEAR EARLIER REVENUE CLIMBED 57 TO 156 BILLION FROM 147 BILLION A YEAR EARLIER THE MIAMI CRUISE LINE COMPANY SAID THE FISCALYEAR RECORD RESULTS WERE AIDED BY THE INTRODUCTION OF ADVANCEPURCHASE DISCOUNT PROGRAMS THAT ENABLED EACH LINE TO BETTER MANAGE ITS YIELDS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CARNIVAL SHARES CLOSED AT AT 46375 DOWN 50 CENTS 9401070063 940107 NESTLE ACQUISITION IN POLAND ZURICH NESTLE SA THE SWISSBASED FOOD AND BEVERAGES CONCERN SAID IT HAS TAKEN A 47 STAKE IN GOPLANA POLAND'S SECONDLARGEST CHOCOLATE AND CONFECTIONERY MAKER THE TRANSACTION IS VALUED AT 43 MILLION NESTLE SAID UNDER THE ACQUISITION NESTLE WILL BE ALLOWED TO INCREASE ITS STAKE TO 51 POLISH STATE ENTITIES CURRENTLY CONTROL 47 OF GOPLANA WHILE WORKERS CONTROL 6 A NESTLE SPOKESMAN SAID GOPLANA LOCATED IN POZNAN EMPLOYS AROUND 2400 PEOPLE AND HAD SALES IN 1993 OF 64 MILLION 9401070062 940107 LWT NOT ABLE TO JOIN YORKSHIRE MAY FACE TAKEOVER SPECIAL TO THE WALL STREET JOURNAL LONDON LWT HOLDINGS PLC SAID ITS MERGER TALKS WITH YORKSHIRETYNE TEES TELEVISION HOLDINGS PLC HAVE BEEN DISCONTINUED THE MERGER HAD BEEN SOUGHT BY LWT THE PARENT OF LONDON WEEKEND TELEVISION IN AN ATTEMPT TO WARD OFF A HOSTILE BID FOR LWT FROM GRANADA GROUP PLC THE BREAKDOWN OF THE TALKS BETWEEN THE BRITISH BROADCASTERS ENHANCES THE CHANCE OF GRANADA SUCCEEDING IN ITS BID FOR LWT REACTING TO THE NEWS THE SHARES OF LWT ROSE 22 PENCE 32736 CENTS TO CLOSE AT 648 PENCE 9642 AFTER THE ANNOUNCEMENT SIR CHRISTOPHER BLAND CHAIRMAN OF LWT SAID IN AN INTERVIEW THAT A PROFIT FORECAST TO BE RELEASED NEXT WEEK WILL HELP LWT DEFEND ITSELF AGAINST GRANADA'S HOSTILE BID MR BLAND SAID HE WILL USE THE FORECAST PAIRED WITH THE COMPANY'S PAST RECORD TO CONVINCE SHAREHOLDERS THAT GRANADA'S BID FOR THE COMPANY IS TOO LOW GRANADA LAUNCHED A TAKEOVER DEC 6 WITH AN OFFER THAT VALUED LWT AT ABOUT 660 MILLION 9821 MILLION MR BLAND WOULDN'T COMMENT ON WHETHER HE WOULD CONSIDER ACCEPTING A LARGER BID FROM GRANADA SAYING ONLY THAT THE CURRENT BID WAS INADEQUATE MR BLAND HAD BEEN EAGER TO FORM AN ALLIANCE WITH YORKSHIRE TV AS WELL AS OTHERS AS PART OF A STRATEGY TO STRENGTHEN AND EXPAND HIS GROUP HE WAS TRYING TO CAPITALIZE ON REGULATORY RESTRICTIONS ON ITV COMPANIES THAT BLOCK ONE ITV FRANCHISE HOLDER FROM OWNING MORE THAN TWO OTHERS GRANADA ALREADY HAS ONE FRANCHISE IN A NEWS RELEASE LWT AND YORKSHIRE SAID THAT ALTHOUGH THEY RECOGNIZED THE COMMERCIAL ARGUMENTS FOR A CLOSER RELATIONSHIP THEY WERE UNABLE TO MEET THE INDEPENDANTTELEVISIONNETWORK OR ITV OWNERSHIP RULES AT THE DECEMBER OFFER GRANADA OWNED 1751 OF LWT'S SHARES LAST WEEK GRANADA SAID IT ACCUMULATED AN ADDITIONAL 231 OF LWT SHARES AND IT EXTENDED THE OFFER UNTIL WEDNESDAY GRANADA IS A LEISURE COMPANY WITH MOTORWAY SERVICES BOWLING CENTERS NIGHTCLUBS THEME PARKS TRAVEL SERVICES AND RENTAL BUSINESSES BUT IT IS GAINING PROMINENCE FOR ITS TELEVISION OPERATIONS WHICH INCLUDE PART OF THE UK INDEPENDENT TELEVISION NETWORK AND A STAKE IN BRITISH SKY BROADCASTING 9401070060 940107 ECONOMY LABOR SECRETARY'S EDUCATED GUESS' ON JOBS DATA IGNITES BOND MARKETS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH LEARNED AN IMPORTANT LESSON WHEN HE TALKS THE BOND MARKETS LISTEN IN A TELECONFERENCE BROADCAST FROM THE US INFORMATION AGENCY IN WASHINGTON TO AN ECONOMIC CONFERENCE IN PARIS MR REICH WAS ASKED ABOUT THE DECEMBER UNEMPLOYMENT FIGURES A CLOSELY WATCHED ECONOMIC INDICATOR TO BE RELEASED TODAY I'M SURE YOU HAVE SEEN THEM CAN YOU GIVE US AN INDICATION OF WHAT THEY SHOW MR REICH WAS ASKED HIS REPLY I CAN'T TELL YOU EXACTLY WHAT THEY WILL SHOW BUT I THINK THEY WILL SHOW EMPLOYMENT RISING IN THE AREA OF PROBABLY ANOTHER 160 THOUSAND TO 200000 MR REICH'S RESPONSE INSTANTLY REPORTED BY FINANCIAL WIRE SERVICES GAVE SOME TRADERS THE IMPRESSION THAT HE HAD ACTUALLY SEEN THE EMPLOYMENT FIGURES AND WAS GIVING THE MARKETS AN UNPRECEDENTED HEADSUP THE BOND MARKET WENT INTO A TIZZY SHOOTING UP ON THE NEWS THAT JOB GROWTH IN DECEMBER WAS BELOW WHAT MARKET ANALYSTS WERE EXPECTING BOND PRICES RISE AND INTEREST RATES FALL ON BAD ECONOMIC NEWS BECAUSE THAT IS SEEN AS LESSENING THE RISK OF INFLATION TIMING MADE MATTERS WORSE MR REICH'S STATEMENTS TOOK PLACE AT ABOUT 8 AM NEW YORK TIME AT 830 THE LABOR DEPARTMENT RELEASED ITS WEEKLY REPORT ON CLAIMS FOR UNEMPLOYMENT BENEFITS WHICH SHOWED A HUGE 70000 INCREASE FOR LAST WEEK THAT BAD NEWS SENT THE MARKET SOARING EVEN MORE THE COMBINATION HELPED PUSH INTEREST RATES ON LONGTERM TREASURY SECURITIES DOWN TO 634 FROM 640 KATHERINE ABRAHAM HEAD OF THE LABOR DEPARTMENT'S BUREAU OF LABOR STATISTICS INSISTED THAT MR REICH WAS SIMPLY MAKING A FORECAST AND DIDN'T KNOW FOR SURE HOW MANY JOBS WERE CREATED IN THE ECONOMY DURING DECEMBER FOR SECURITY REASONS THE BUREAU SAID IT DOESN'T SHARE ITS FIGURES WITH THE LABOR SECRETARY UNTIL THE MORNING THEY ARE RELEASED MARY MEAGHER MR REICH'S SPOKESWOMAN CALLED HIS STATEMENTS AN EDUCATED GUESS WE SUSPECT STRONGLY THAT NEXT WEEK'S DATA WILL REGISTER A SIGNIFICANT DECLINESAID MARILYN SCHAJA DONALDSON LUFKIN & JENRETTE CORP MONEYMARKET ECONOMIST THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS CONSIDERED A MORE RELIABLE MEASURE OF LABORMARKET CONDITIONS ROSE ONLY 6500 TO 328500 DURING THE LATEST PERIOD THE FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9401070059 940107 CORPORATE FOCUS STRIKE FEARS IMPERIL GM'S BID TO REV UP ITS TURNAROUND SMITH'S OPTIMISTIC INTERVIEW CONTRASTS WITH UAW'S TRUCKPLANT THREAT BY ROBERT L SIMISON AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT THE UNITED AUTO WORKERS UNION IS THREATENING TO STRIKE A KEY GENERAL MOTORS CORP TRUCK PLANT AS SOON AS TUESDAY UNDERSCORING THE CHALLENGE GM PRESIDENT JOHN F SMITH JR FACES AS HE TRIES TO KICK THE NO 1 AUTO MAKER'S TURNAROUND INTO HIGHER GEAR IN AN INTERVIEW YESTERDAY MR SMITH SAID THERE IS SOME NOISE AND SOME TENSION IN RELATIONS BETWEEN THE COMPANY AND THE UAW BUT HE MAINTAINED THAT GENERALLY WE'RE WORKING VERY WELL TOGETHER WE NEED TO OVER TIME HOWEVER EVEN AS MR SMITH SPOKE UAW OFFICIALS ANGRY AT THE SLOW PROGRESS OF PLANTLEVEL CONTRACT TALKS WERE STARTING THE COUNTDOWN FOR A STRIKE AT GM'S BIG SHREVEPORT LA ASSEMBLY PLANT THAT BUILDS CHEVROLET S10 AND GMC SONOMA PICKUPS THE TRUCKS REDESIGNED FOR LAST FALL ARE AMONG GM'S LARGESTSELLING VEHICLES THE FLAREUP AT SHREVEPORT COMING JUST TWO MONTHS AFTER GM AND THE UAW REACHED A NEW NATIONAL CONTRACT WITHOUT A STRIKE THREAT CAST A CLOUD OVER MR SMITH'S EFFORTS TO HIGHLIGHT GM'S PROGRESS DURING 1993 AND ITS IMPROVED OUTLOOK GM WAS IN THE BLACK OVERALL FOR 1993 AND WILL SHOW MORE IMPROVEMENT IN 1994 MR SMITH SAID DURING HIS INTERVIEW AT THE DETROIT AUTO SHOW THE GM PRESIDENT ALSO SAID GM EUROPE WAS PROFITABLE FOR 1993 AND SOLD SOME 15000 MORE VEHICLES THAN FORECAST IN DECEMBER HOWEVER MR SMITH CAUTIONED THAT THE EUROPEAN MARKET OUTLOOK REMAINS WEAK THE REORGANIZATION OF GM'S NORTH AMERICAN OPERATIONS AND REFOCUSING OF ITS PARTSPROCUREMENT EFFORTS HAVE CUT THE COSTS OF DEVELOPING NEW PRODUCTS 20 TO 30 GM'S NORTH AMERICAN PASSENGERCAR BUSINESS IS STILL FAR FROM HEALTHY BUT GM CAN'T MOVE ANY FASTER TO REPLACE AGING AND UNPROFITABLE PRODUCTS BECAUSE WE HAVE AS MUCH ON OUR PLATTER AS WE CAN HANDLE FROM A HUMANRESOURCES STANDPOINT MR SMITH LATER TOLD THE ASSOCIATED PRESS THAT GM WILL HIRE AS MANY AS 2000 NEW ENGINEERS THIS YEAR BECAUSE WE NEED THOSE RESOURCES MR SMITH DECLINED TO FORECAST GM'S PROFITS FOR 1994 EXCEPT TO SAY THEY WOULD BE BETTER THAN IN 1993 HE REITERATED THAT NORTH AMERICAN OPERATIONS ARE EXPECTED TO SHOW A PROFIT IN 1994 MR SMITH ALSO SAID THE AVAILABILITY OF CAPITAL ISN'T ANY LONGER A CONSTRAINT IN DEVELOPING NEW PRODUCTS IN 1991 GM DELAYED SEVERAL NEWPRODUCT PROGRAMS FOR LACK OF CASH CASH FLOW HAS BEEN VERY FAVORABLE EXCELLENT MR SMITH SAID THAT REFLECTS REDUCED LOSSES LOWER CAPITAL SPENDING AND IMPROVED TURNOVER OF INVENTORIES MR SMITH WAS SWEPT IN AS GM'S CHIEF EXECUTIVE OFFICER IN NOVEMBER 1992 IN A COUP BY GM'S INDEPENDENT DIRECTORS AT A TIME WHEN GM WAS HEMORRHAGING 1 BILLION IN CASH EVERY QUARTER HIS FIRST MANDATE WAS TO STOP THE BLEEDING BY CUTTING COSTS WHILE MR SMITH IS CAREFUL NOT TO MAKE BOLD CLAIMS FOR A TURNAROUND IT'S CLEAR GM IS WELL OFF THE CRITICAL LIST HOWEVER MR SMITH IS QUICK TO SAY THAT GM HAS A LONG WAY TO GO TO REGAIN ITS FORMER PROFITABILITY AND FINANCIAL STRENGTH THE COMPANY MUST BOLSTER ITS BALANCE SHEET WITH BILLIONS IN NEW CASH TO PREPARE FOR THE NEXT AUTOINDUSTRY DOWNTURN MR SMITH SAID TO DO THAT HE SAID WE MUST GET LEAN AND DRASTICALLY IMPROVE PRODUCTIVITY GETTING LEAN OFTEN TRANSLATES INTO FEWER UAW JOBS UAW LEADERS HAD PRAISED MR SMITH'S EFFORTS TO IMPROVE LABORMANAGEMENT RELATIONS AND MR SMITH AND HIS AIDES JUSTIFIED ACCEPTING A COSTLY NEW CONTRACT LAST NOVEMBER BY ARGUING THAT PRESERVING A GOOD RELATIONSHIP WITH THE UAW WAS WORTH THE SACRIFICE OF AN UNFAVORABLE LABOR DEAL MR SMITH'S EFFORT TO MAKE THE BEST OF THE NEW AGREEMENT BY ACCELERATING PRODUCTIVITY IMPROVEMENTS AT GM PLANTS HAS BEGUN TO PROVOKE A UNION BACKLASH IN DECEMBER THE UAW'S TOP BARGAINER AT GM STEPHEN P YOKICH UNLEASHED A TIRADE AT MR SMITH DURING THE SIGNING CEREMONY FOR THE NATIONAL CONTRACT COMPLAINING THAT GM BARGAINERS WERE PUTTING UNDUE PRESSURE ON LOCAL UNIONS TO MAKE CONCESSIONS AND AGREE TO BIG WORK FORCE CUTS RAISING PRODUCTIVITY IS SOMETHING EVERYBODY CAN AGREE ON IN THE ABSTRACT SAID HARLEY SHAIKEN A PROFESSOR AT UNIVERSITY OF CALIFORNIA AT BERKELEY BUT IT GETS MUCH MORE DIFFICULT WHEN YOU GET DOWN TO SPECIFICS SHREVEPORT UNION OFFICIALS SAY ONE OF THEIR COMPLAINTS IS THAT GM IS TRYING TO RUN THE PLANT WITH TOO FEW WORKERS ESSENTIALLY PUSHING FOR IMPROVED PRODUCTIVITY SHREVEPORT CURRENTLY HAS ABOUT 2300 HOURLY EMPLOYEES ON TWO SHIFTS SHREVEPORT IS ONE OF 48 UAWREPRESENTED GM PLANTS THAT HAVEN'T CONCLUDED A LOCAL AGREEMENT GM HAS 112 UAWREPRESENTED FACTORIES WE ARE HOPEFUL WE CAN GET THIS RESOLVED A GM SPOKESWOMAN SAID ADDING THAT TALKS ARE CONTINUING THE SHREVEPORT FACTORY LIKELY WON'T BE THE LAST GM OPERATION TO BRIDLE AT MR SMITH'S PROGRAM OF DOING MORE WITH LESS BUT MR SMITH SAID HE'S DETERMINED THAT GM MUST DO THAT TO REESTABLISH ITSELF AS A STRONG PROFITABLE COMPANY ANOTHER ASPECT OF MR SMITH'S STRATEGY IS TO USE JOINT VENTURES TO EXPAND GM'S BUSINESS WITH LESS CAPITAL INVESTMENT YESTERDAY FOR EXAMPLE GM'S PARTSMAKING UNIT SAID IT IS SETTING UP JOINT VENTURES WITH CHINA TO SELL ENGINEMANAGEMENT SYSTEMS THERE AND A SEPARATE VENTURE WITH ALLIEDSIGNAL INC TO PURSUE DEVELOPMENT AND PRODUCTION OF ADVANCED MATERIALS FOR USE IN CATALYTIC CONVERTERS WHICH SCRUB POLLUTANTS OUT OF ENGINE EXHAUST IN A SEPARATE INITIATIVE MR SMITH SAID GM EXECUTIVES ARE WORKING ON A NEW MORE RIGOROUS METHOD FOR MEASURING THE PERFORMANCE OF EACH OPERATING UNIT MANAGERS WILL BE EXPECTED TO PRODUCE PROFITS EQUIVALENT TO 125 OR MORE OF THE VALUE OF ASSETS INVESTED IN THEIR OPERATIONS AT GM'S SATURN SUBSIDIARY THAT TRANSLATES TO A PROFIT OF ABOUT 300 MILLION A YEAR ON ROUGHLY 25 BILLION IN ASSETS GM WON'T DISCLOSE THE ASSET BASE IT WILL USE IN MEASURING OVERALL OPERATIONS THE RETURNONNETASSETS MEASUREMENT IS USED BY SEVERAL OTHER COMPANIES MR SMITH SAID GM MANAGERS SAY THE MEASUREMENT PUSHES THEM TO SPEND LESS ON NEW EQUIPMENT AND BUILDINGS BECAUSE THE LARGER THE BASE OF ASSETS THE MORE PROFIT REQUIRED TO HIT THE RETURN TARGET THIS COMPANY FOR TOO LONG WAS AN OPERATING INCOMEDRIVEN COMPANY HEIDI KUNZ THE NEW YORKBASED TREASURER OF GM SAID IN A SEPARATE INTERVIEW RECENTLY MS KUNZ'S OFFICE HAS LED THE STUDY OF HOW GM IS TO MEASURE SUCCESS THE COMPANY HAS BEEN VERY PROFITABLE IN THE PAST IN DOLLARS BUT NOT IN RELATION TO ASSETS OR SALES THE PROFITS WERE SO LARGE IT WAS INEBRIATING SHE SAID MR SMITH WON'T REVEAL WHAT KIND OF PROFIT GM WOULD EARN IF IT HIT HIS TARGET FOR RETURN ON NET ASSETS BUT MR SMITH ALSO HAS SAID THAT GM EVENTUALLY SHOULD SHOW FIVE CENTS OF PROFIT FOR EVERY DOLLAR OF SALES ON GM'S 132 BILLION OF 1992 REVENUE THAT PROFIT MARGIN WOULD HAVE YIELDED A RECORD 66 BILLION IN NET INCOME 9401070058 940107 BUSINESS BRIEF GERRITY OIL & GAS CORP SEARCH FOR A POTENTIAL BUYER BEGUN LAST OCTOBER IS ENDED GERRITY OIL & GAS CORP DENVER SAID IT'S TERMINATING THE SEARCH FOR POTENTIAL BUYERS OF THE COMPANY THAT WAS STARTED LAST OCTOBER IN A PREPARED STATEMENT THE COMPANY SAID AFTER INVESTIGATING THE POSSIBILITY OF SELLING THE COMPANY OVER THE PAST THREE MONTHS THE BOARD OF DIRECTORS HAS DETERMINED BASED ON INTERNAL VALUATIONS AND ON THE ADVICE OF SENIOR MANAGEMENT THE INDICATIONS OF INTEREST WHICH HAVE BEEN RECEIVED AND CURRENT INDUSTRY FACTORS THAT GREATER SHAREHOLDER VALUE IS LIKELY TO BE ACHIEVED BY CONTINUING AS AN INDEPENDENT COMPANY RATHER THAN BY SELLING OR MERGING THE COMPANY IN TODAY'S CIRCUMSTANCES IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GERRITY CLOSED AT 12 DOWN 125 CENTS FOR THE NINE MONTHS ENDED SEPT 30 THE COMPANY HAD NET INCOME OF 98 MILLION OR 58 CENTS A SHARE ON REVENUE OF 501 MILLION 9401070057 940107 BUSINESS BRIEF WAHLCO ENVIRONMENTAL SYSTEMS INC COMPANY TO SHUT 2 UNITS TAKE A CHARGE OF 10 MILLION WAHLCO ENVIRONMENTAL SYSTEMS INC ANNOUNCED SEVERAL RESTRUCTURING MOVES IT SAID WOULD RESULT IN A FOURTHQUARTER CHARGE OF ABOUT 10 MILLION OR 37 CENTS TO 42 CENTS A SHARE THE CHARGE ACCOUNTS FOR COSTS ASSOCIATED WITH THE PHASING DOWN IN 1994 OF THE COMPANY'S WAHLCO POWER PRODUCTS UNIT IN FAIRMONT WVA AND WAHLCO ENGINEERED PRODUCTS CANADA UNIT IN MONTREAL MANUFACTURING EARMARKED FOR CANADA WILL BE TAKEN OVER BY THE COMPANY'S LEWISTON MAINE FACILITY THE MOVES WILL CUT A TOTAL OF ABOUT 105 JOBS OR ABOUT 13 OF THE COMPANY'S WORK FORCE IN THE 1992 FOURTHQUARTER THE SANTA ANA CALIF COMPANY WHICH PROVIDES AIRPOLLUTIONCONTROL SYSTEMS FOR UTILITIES POSTED A NET LOSS OF 48 MILLION OR 27 CENTS A SHARE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY WAHLCO SHARES ROSE 25 CENTS OR 56 TO 475 9401070056 940107 LLOYD'S OF LONDON AMENDS SETTLEMENT WITH INVESTORS LONDON AP LLOYD'S OF LONDON AMENDED ITS OFFER TO SETTLE CLAIMS FROM HARDHIT INVESTORS CORRECTING A CALCULATION ERROR THE INSURANCE MARKET ALSO EXTENDED ITS DEADLINE FOR ACCEPTANCE OF THE 900 MILLIONPOUND 134 BILLION SETTLEMENT BY TWO WEEKS TO FEB 14 LLOYD'S SAID NEARLY HALF OF THE 21000 NAMES AS LLOYD'S INVESTORS ARE CALLED WILL RECEIVE LESS THAN THEIR ORIGINAL OFFER SOME 12000 NAMES WILL RECEIVE AN INCREASED OFFER LLOYD'S SAID THE CHANGES INVOLVE 20 BILLION POUNDS BUT THE TOTAL AMOUNT OF THE OFFER REMAINS UNCHANGED THERE IS NO QUESTION OF INCREASING THE OFFER AND IF THE OFFER FAILS WE SHALL CONTINUE TO HELP THE NAMES IN SETTLING THEIR LOSSES BUT IT WILL NOT BE IN THE FORM OF ANOTHER OFFER LLOYD'S CHAIRMAN DAVID ROWLAND SAID MANY NAMES ARE FACING BANKRUPTCY AS A RESULT OF INSURANCE LOSSES IN THE LATE 1980S AND EARLY 1990S GROUPED INTO SYNDICATES THAT UNDERWRITE INSURANCE POLICIES THE NAMES RISKED UNLIMITED PERSONAL FINANCIAL LIABILITY IN EXCHANGE FOR THE CHANCE TO SHARE PROFITS MANY BLAME MISMANAGEMENT AND LACK OF REGULATION WITHIN THE INSURANCE MARKET FOR THE LOSSES MEMBERS OF LLOYD'S WHO ACCEPT THE SETTLEMENT OFFER WILL GIVE UP THE RIGHT TO BRING LEGAL ACTION AGAINST LLOYD'S FOR DAMAGES 9401070055 940107 ZALE'S SAMESTORE SALES ROSE DALLAS ZALE CORP SAID ITS SALES AT STORES OPEN MORE THAN A YEAR ROSE 69 IN DECEMBER FROM A YEAR EARLIER THE JEWELRY RETAILER WHICH DIDN'T PROVIDE FIGURES ON ITS TOTAL SALES DURING THE MONTH SAID THE INCREASE IN SAMESTORE SALES WOULD BE OFFSET BY CONTINUING PRESSURE ON THE COMPANY'S PROFIT MARGINS 9401070054 940107 COMMODITIES GOLD FUTURES PRICES SETTLE LOWER AMID CONCERN ABOUT PROSPECTS OF MIDEAST SYNDICATES' SELLING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES PRICES SETTLED LOWER AFTER A DAY OF TURBULENT TRADING SPAWNED BY CONCERNS ABOUT THE PROSPECTS OF SELLING BY MIDDLE EASTERN INVESTOR SYNDICATES AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR FEBRUARY DELIVERY WAS DOWN 2 TO 39010 AN OUNCE WHILE THE ACTIVELY TRADED MARCH SILVER FUTURES CONTRACT ROSE 52 CENTS TO 5137 AN OUNCE MUCH OF THE STRENGTH IN A PRECIOUSMETALS PRICE RALLY OVER THE PAST TWO MONTHS HAS FLOWED FROM THE MIDDLE EAST WHERE INVESTOR SYNDICATES HAVE BEEN BUYING LARGE QUANTITIES OF SILVER BULLION THESE SYNDICATES ANALYSTS SAY HAVE BEEN HOARDING THE SILVER AS A HEDGE AGAINST POSSIBLE DEVALUATION OF THEIR CURRENCY THE RIYAL YET RECENT AUSTERITY MEASURES TAKEN BY SAUDI ARABIA APPEAR TO HAVE EASED THE PROSPECT OF DEVALUATION OF THE CURRENCY SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH AS A RESULT THERE HAS BEEN SOME LIQUIDATION OF SILVER BY THE MIDDLE EASTERN SYNDICATES SILVER HAS BEEN THE LEADER MR O'NEILL SAID MOST OF THE STRENGTH AND WEAKNESS THAT HAS DEVELOPED IN THE PRECIOUSMETALS MARKET RECENTLY HAS FOLLOWED SILVER SELLING BY THE MIDDLE EASTERN SYNDICATES AND OTHERS PUSHED FUTURES PRICES DOWN SHARPLY AT THE COMEX EARLY YESTERDAY AS PRICES MOVED LOWER PREARRANGED ORDERS TO SELL FUTURES CONTRACTS WERE ACTIVATED ACCELERATING THE PACE OF THE DECLINE BUT BY THE END OF THE TRADING SESSION PRICES RALLIED BACK AS BUYERS RETURNED TO THE MARKET GOLD TRADED ALL THE WAY DOWN TO 385 IN THE FEBRUARY CONTRACT BUT IT REBOUNDED NICELY FROM THAT LEVEL SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORP I THINK THIS IS HEALTHY FOR THE MARKET THE PRICE OF GOLD HAS BEEN BUILDING MORE OR LESS STEADILY SINCE EARLY LAST YEAR IT ROSE AS HIGH AS 414 AN OUNCE LAST SUMMER BEFORE FALLING AGAIN TO THE MID300 RANGE A SPATE OF POSITIVE GOVERNMENT ECONOMIC DATA HAS RECENTLY BROUGHT THE PRICE BACK FOR A SECOND TRY AT 400ANOUNCE MOST ANALYSTS THINK GOLD WILL TOP THE 400ANOUNCE LEVEL WITHIN THE NEXT FEW WEEKS AS THE US ECONOMY CONTINUES TO STRENGTHEN IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDEOIL FUTURES PRICES FINISHED SLIGHTLY HIGHER AFTER TRADING IN A WIDE RANGE DESCRIBED BY TRADERS AS A REAL ROLLERCOASTER RIDE SOME MARKET PARTICIPANTS HAVE BEGUN TO QUESTION WHETHER THE MARKET BEARISH FOR WEEKS MAY BE POISED FOR A TURNAROUND DATA ON INVENTORY LEVELS RELEASED BY THE AMERICAN PETROLEUM INSTITUTE AND THE ENERGY DEPARTMENT DURING THE MIDDLE OF THE WEEK PROVIDED SUPPORT FOR THE PRICE RISE THEIR NUMBERS SHOWED CRUDE STOCKS DROPPED BY 63 MILLION TO 66 MILLION BARRELS LAST WEEK IN REACTION TO A SUDDEN UNEXPECTED JUMP IN REFINERY OPERATIONS ANALYSTS AND TRADERS SAID THEY WERE MOST SURPRISED BY THE FACT THAT DATA SHOWED REFINERY OPERATIONS INCREASED TO AS MUCH AS 935 OF CAPACITY A GAIN OF 27 ON THE WEEK ANALYSTS HAD EXPECTED REFINERY OPERATIONS TO DECLINE SOME TRADERS SAID THEY BELIEVE THE JUMP IN REFINERY UTILIZATION COULD REPRESENT A LASTMINUTE EFFORT TO BUILD PRODUCT INVENTORIES BEFORE REFINERIES ARE SHUT DOWN FOR SCHEDULED MAINTENANCE BRITISH PETROLEUM CO'S HUGE LOUISIANA REFINERY IS SCHEDULED FOR A 42DAY SHUTDOWN BEGINNING FEB 17 AND PHILLIPS PETROLEUM CO PLANS A 22DAY CLOSURE AT ITS PLANT IN BORGER TEXAS GRAINS PRICES OF CORN FUTURES CONTRACTS ROSE AMID SPECULATION THAT THE AGRICULTURE DEPARTMENT ON WEDNESDAY WILL REVISE ITS TWOMONTHOLD HARVEST ESTIMATE TO REFLECT MORE DAMAGE FROM EXCESSIVE RAIN AND FLOODING TRADERS EXPECT THE GOVERNMENT TO PUT THE SIZE OF THE RECENTLY HARVESTED CROP BETWEEN 63 BILLION BUSHELS AND 65 BILLION BUSHELS THE AGRICULTURE DEPARTMENT IN NOVEMBER ESTIMATED THAT THE US CORN HARVEST DECLINED 31 TO 65 BILLION BUSHELS FROM THE 1992 CROP US CORN PRICES HAVE SOARED SINCE THE POOR FALL HARVEST AND PRICES WOULD CLIMB EVEN HIGHER THIS WINTER IF THE GOVERNMENT'S FINAL HARVEST ESTIMATE IS REVISED LOWER CORN STOCKPILES THIS YEAR ARE ALREADY EXPECTED TO BE THE TIGHTEST SINCE THE MID1970S MUCH OF THE CORN CROP IS USED TO FEED LIVESTOCK AND TO MAKE FRUCTOSE SWEETENER AND ETHANOL FUEL AMONG OTHER THINGS REVISING THE CORN HARVEST COULD SIGNAL THAT THE US WILL HAVE PROBLEMS SUPPLYING FOREIGN CUSTOMERS IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY ROSE THREE CENTS A BUSHEL TO SETTLE AT 30850 A BUSHEL WHEAT PRICES ROSE AMID FORECASTS THAT COLD TEMPERATURES ACROSS THE SOUTHERN PLAINS OVER THE WEEKEND MIGHT DAMAGE THE DORMANT WHEAT CROP THERE 9401070053 940107 BUSINESS BRIEF AZTEC ENERGY CORP COMPANY FORESEES NET LOSS OF 12 MILLION FOR FISCAL '93 AZTEC ENERGY CORP SAID IT EXPECTS TO REPORT A NET LOSS OF MORE THAN 12 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 THE DALLAS COMPANY ALSO SAID IT EXPECTS TO RESTATE EARNINGS FOR THE FIRST NINE MONTHS OF FISCAL 1993 WHICH HAD BEEN REPORTED AS PROFITABLE AS A LOSS FOR THE FIRST NINE MONTHS AZTEC HAD REPORTED NET INCOME OF 152637 OR FOUR CENTS A SHARE ON REVENUE OF 695719 FOR FISCAL 1992 AZTEC HAD A NET LOSS OF 47000 OR SEVEN CENTS A SHARE ON REVENUE OF 105000 THE TOTAL SHARES OUTSTANDING ROSE TO 43 MILLION CURRENTLY FROM 15 MILLION IN SEPTEMBER 1992 THE OIL AND NATURALGAS COMPANY BLAMED ITS EXPECTED LOSS FOR THE YEAR ON OPERATING COSTS DELAYS IN GAS PRODUCTION AND RECLASSIFYING CERTAIN ITEMS ON ITS BALANCE SHEET AND INCOME STATEMENT AZTEC WHOSE OVERTHECOUNTER TRADING WAS HALTED TEMPORARILY YESTERDAY CLOSED AT 184375 DOWN 59375 CENTS OR 24 9401070052 940107 US TO CUT CHINA'S QUOTAS FOR TEXTILES AND APPAREL WASHINGTON THE CLINTON ADMINISTRATION SAID IT PLANS TO SLASH CHINA'S TEXTILE AND APPAREL QUOTAS 25 TO 35 IN A MOVE CERTAIN TO PUT FURTHER STRAIN ON THE US RELATIONSHIP WITH CHINA US TRADE REPRESENTATIVE MICKEY KANTOR SAID WASHINGTON TOOK ACTION BECAUSE HE CLAIMED CHINESE COMPANIES SHIP GOODS THROUGH OTHER COUNTRIES TO AVOID US QUOTA LIMITS FOR GOODS MADE IN CHINA HE SAID THE CHINESE GOVERNMENT IS INVOLVED TO SOME DEGREE IN THE ILLEGAL SHIPMENTS BECAUSE MANY OF THOSE COMPANIES ARE GOVERNMENTRUN YESTERDAY'S ACTION WAS EXPECTED TALKS OVER CREATING A NEW QUOTA SYSTEM FELL APART LAST MONTH AND US OFFICIALS SAID CHINA DIDN'T RESPOND TO AN INVITATION TO MEET AGAIN OVER THE DISPUTE THE REDUCED QUOTAS TAKE EFFECT JAN 17 RETROACTIVE TO THE BEGINNING OF THE MONTH MR KANTOR SAID THE US CUSTOMS SERVICE CLAIMS AN ESTIMATED 2 BILLION IN CHINESE TEXTILES ARE SHIPPED ILLEGALLY THROUGH OTHER COUNTRIES EACH YEAR LEGAL IMPORTS OF CHINESE TEXTILES AND APPAREL TOTALED ABOUT 45 BILLION IN 1992 MR KANTOR ESTIMATED THE CUTS WOULD COST CHINA BETWEEN 11 BILLION AND 12 BILLION IN EXPORT RECEIPTS ANNUALLY US OFFICIALS SAID THE 35 CUT WOULD APPLY TO EIGHT CATEGORIES OF TEXTILES AND APPAREL IDENTIFIED BY THE CUSTOMS SERVICE AS ITEMS WHERE ALLEGED SHIPMENT VIOLATIONS ARE MOST PREVALENT BY CHINA THE 25 REDUCTION IS EXPECTED TO APPLY TO THE OTHER CATEGORIES OF CHINESE GOODS 9401070051 940107 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON DEFENDERS COME OUT SWINGING ON WHITEWATER ADVISER BEGALA FINALLY OFFERS AN EXPLANATION WHY THE CLINTONS NEVER CLAIMED THEIR REALESTATE LOSSES ON THEIR TAX RETURNS HE SAYS THEY COULD ONLY HAVE DONE SO WHEN THEY LIQUIDATED THEIR INVESTMENT IN 1992 THEY COULD HAVE SAVED 280 IF THEY CLAIMED THE LOSSES AGAINST A 1000 CAPITAL GAIN THEY REPORTED HE SAYS BUT IT WASN'T WORTH IT BECAUSE OF THE HASSLE FACTOR WE WANT TO FIGHT BACK HE SAYS OF THE CHARGES AGAINST THE FIRST COUPLE WE ARE TIRED OF PEOPLE USING BILL AND HILLARY CLINTON AS PUNCHING BAGS CLINTON AIDES SOUGHT UNSUCCESSFULLY TO PLACE A DEFENDER ON CBS'S MORNINGNEWS SHOW YESTERDAY TO CONFRONT SENATE GOP LEADER DOLE GORE IS ITCHING TO BE ASKED ABOUT WHITEWATER SO HE CAN UNLEASH AN ATTACK ON THE CLINTONS' TORMENTORS THE FED WILL WAIT BEFORE RAISING INTEREST RATES UNLESS INFLATION HEATS UP DESPITE WALL STREET SPECULATION TO THE CONTRARY OFFICIALS APPEAR TO HAVE VOTED TO LEAN TOWARD NEITHER HIGHER NOR LOWER RATES AT THEIR CLOSEDDOOR DECEMBER MEETING SOME REGIONAL FED PRESIDENTS ARE RELUCTANT TO GIVE GREENSPAN THE LEEWAY TO MOVE RATES BECAUSE THEY WANT THE PIVOTAL CALL TO BE MADE AT A FORMAL POLICYCOMMITTEE MEETING OTHERS UNSURE HOW STRONG THE FIRST QUARTER WILL BE WANT TO AVOID LAST YEAR'S FLIPFLOP WHEN THE FED LEANED TOWARD HIGHER RATES IN MAY AND REVERSED ITSELF IN AUGUST STILL THE FED PROBABLY WILL PUSH UP RATES BEFORE MIDYEAR THE NEW WHITE HOUSE ECONOMIC FORECAST ANTICIPATES AN INCREASE OF ABOUT A HALF PERCENTAGE POINT THIS YEAR INMAN'S INTERESTS MAY RANGE WELL BEYOND TRADITIONAL PENTAGON CONCERNS THE DEFENSE CHIEFDESIGNATE IS LIKELY TO WEIGH IN ON TRADE MATTERS THOUGH A FREETRADER HE BELIEVES THE GOVERNMENT SHOULD HELP INDUSTRY COMPETE VIGOROUSLY WITH FOREIGN FIRMS HE ALSO FAVORS LOOSENING ANTITRUST REGULATIONS PENTAGON OFFICIALS HAVE BEEN TANGLING OVER THE ISSUE WITH JUSTICE BUT ASPIN NEVER SPOKE OUT ON THEIR BEHALF INMAN IS LIKELY TO ARGUE FOR RELATIVELY ROBUST DEFENSE BUDGETS BUT ALSO FOR SKEWING SPENDING AWAY FROM BIGTICKET WEAPONS PROCUREMENT AND TOWARD RESEARCH AND DEVELOPMENT TO MAINTAIN THE US TECHNOLOGICAL EDGE TO FIND R&D FUNDS HE ALMOST CERTAINLY WILL ORDER MORE PERSONNEL CUTS WHICH COULD BRING HIM INTO CONFLICT WITH THE SERVICES ESPECIALLY THE ARMY HOUSE INTELLIGENCE CHAIRMAN GLICKMAN SAYS INMAN AN INTELLIGENCE SPECIALIST COULD CHALLENGE THE AUTHORITY A LITTLE BIT OF CIA CHIEF WOOLSEY ALARMED BY THE PUBLIC SQUABBLE BETWEEN THE TREASURY AND FED OVER BANKREGULATORY CONSOLIDATION WHITE HOUSE ECONOMIC AIDES TRY TO BROKER A COMPROMISE SOME ADMINISTRATION AND FED OFFICIALS ASK PRIVATELY WHY GREENSPAN DIDN'T PERSONALLY ALERT THE WHITE HOUSE TO HIS CONCERNS WHEN EARLIER TALKS WITH TREASURY BROKE DOWN WILLIAM KRISTOL THE GOP STRATEGIST WHO SHOOK UP REPUBLICANS' HEALTHREFORM THINKING LAST MONTH BY ARGUING THERE IS NO HEALTHCARE CRISIS READIES A FOLLOWUP STRATEGY HE ARGUES THAT RATHER THAN PUSH BIG PLANS TO COUNTER CLINTON'S THE GOP SHOULD PRODUCE A LIMITED SET OF INSURANCE AND MALPRACTICE REFORMS AND TAX INCENTIVES GEORGIA SEN COVERDELL SEEMS ATTRACTED TO THE APPROACH KRISTOL HOPES ABOVE ALL TO CONVERT GINGRICH AND DOLE GLASNOST THE CIA ISSUES ITS FIRST NEWSLETTER TO JOURNALISTS SCHOLARS AND PUBLICINTEREST GROUPS SENT IN AN ENVELOPE BEARING A HOLOGRAM OF A SPY SATELLITE INSTEAD OF A STAMP THE NEWSLETTER PROMISES THAT THE AGENCY WILL RELEASE LARGE QUANTITIES OF ITS SECRET COLD WAR FILES LATER THIS YEAR SOME DEALING WITH THE 1961 BAY OF PIGS INVASION CLINTON'S EMERGING PLAN TO OVERHAUL THE SUPERFUND TOXICCLEANUP PROGRAM MAY PROVE AN EASIER SELL TO REPUBLICANS THAN TO MEMBERS OF HIS OWN PARTY KEY LEGISLATIVE DEMOCRATS WHO HAVE BEEN BRIEFED ON THE PLAN ARE WARY THEY PREFER A GREENER PROPOSAL PUT FORWARD BY A PANEL OF ENVIRONMENTALISTS AND INDUSTRY REPRESENTATIVES JUSTICES RETURN TO FACE CASES ON THE ENVIRONMENT CRIME AND MILITARY BASES THE HIGH COURT RECONVENES MONDAY AMID GROWING BLACKMUN RETIREMENT RUMORS THE JUSTICES WILL USE THE FIGHT OVER THE PROPOSED CLOSING OF THE HUGE PHILADELPHIA NAVY YARD TO DECIDE WHETHER POLITICIANS MAY ASK THE JUDICIARY TO SECONDGUESS THE DECISIONS OF THE BASECLOSING COMMISSION CREATED BY CONGRESS BIG MONEY RIDES ON A CASE FROM CHICAGO INVOLVING WHETHER ASH LEFT AFTER INCINERATION OF CITY TRASH MUST BE TREATED AS HAZARDOUS WASTE IF SO INCINERATORS IN MANY CITIES COULD FAIL PROMPTING DEFAULT ON BILLIONS OF DOLLARS IN MUNICIPAL BONDS THE COURT ALSO WILL CONSIDER WHETHER STATE TAXATION OF ILLEGAL NARCOTICS POSSESSED BY A DEFENDANT SHOULD BE BARRED UNDER THE DOUBLE JEOPARDY CLAUSE MINOR MEMOS CLINTON MOMENTARILY NONPLUSED WHEN A SUPPORTER ASKS HIM AT A WHITE HOUSE RECEPTION WHETHER HE FAVORS ARKANSAS OR GEORGETOWN IN COLLEGE BASKETBALL FINALLY RESPONDS ARKANSAS BUT DON'T TELL JOHN THOMPSON EPA ADMINISTRATOR CAROL BROWNER TAKES FEARSOME CAPITOL HILL BARON JOHN DINGELL TO THE MOVIES TO SEE GRUMPY OLD MEN CLINTON'S BUDGET OFFICE DECIDES TO ISSUE THE BUDGET IN FOUR SEPARATE VOLUMES AS WAS DONE IN THE PRERICHARD DARMAN ERA GONE IS THE SINGLE VOLUME THE SIZE OF THE MANHATTAN PHONE BOOK 9401070050 940107 BUSINESS BRIEF S&K FAMOUS BRANDS INC SHARES DROP MORE THAN 13 AFTER STATEMENT ON SALES SHARES OF S&K FAMOUS BRANDS INC TUMBLED MORE THAN 13 AFTER THE COMPANY ACKNOWLEDGED THAT ITS SALES LEVELS FOR THE FOURTH QUARTER WON'T MEET ANALYSTS' EXPECTATIONS THE RICHMOND VA MENSWEAR RETAILER SAID IT EXPECTS FOURTHQUARTER GROSS SALES TO BE BETWEEN 33 MILLION AND 35 MILLION ABOUT AN 8 TO 15 GAIN OVER THE YEARAGO PERIOD ANALYSTS HAD ESTIMATED FOURTHQUARTER SALES WOULD BE ABOUT 39 MILLION S&K SAID IT BELIEVES LOWERTHANEXPECTED SALES STEMMED FROM SOFT DEMAND FOR MEN'S APPAREL IN SOME LOCATIONS DURING THE HOLIDAY SEASON S&K HAS 154 STORES IN 26 STATES IN NASDAQ MARKET TRADING S&K SHARES FELL 250 TO 16 IN HEAVY TRADING 9401070049 940107 TECHNOLOGY & MEDICINE AT&T EXECUTIVE ATTACKS CABLE INDUSTRY AS WAR OVER INTERACTIVE TV HEATS UP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS AMERICAN TELEPHONE & TELEGRAPH CO LAUNCHED A BROADSIDE AGAINST THE CABLE TELEVISION INDUSTRY WARNING THAT CABLE PURVEYORS COULD ACT AS GATEKEEPERS RESTRICTING WHAT GOES INTO HOMES OVER THE EMERGING INFORMATION HIGHWAY IN HIS KEYNOTE ADDRESS TO THE CONSUMER ELECTRONICS SHOW HERE YESTERDAY ROBERT KAVNER AT&T EXECUTIVE VICE PRESIDENT AND CHIEF STRATEGIST FOR THE COMPANY'S WIDENING FORAY INTO INTERACTIVE COMMUNICATIONS SAID CABLE AND LOCAL TELEPHONE DISTRIBUTION FIRMS WOULD IMPEDE THE FLOW OF INFORMATION IF THEY FOLLOW CABLE'S CURRENT PRACTICES MR KAVNER SAID TV PRODUCERS HAVE GREAT DIFFICULTY GETTING THEIR IDEAS AND PROGRAMS THROUGH THE CABLE INDUSTRY'S GATE AND HE PREDICTED PROVIDERS OF NEW INTERACTIVE PROGRAMS WOULD FACE THE SAME OBSTACLE IF THE GATE IS NOT OPENED GETTING A PROGRAM ON CABLE WHICH PROVIDES PROGRAMMING TO 624 OR 58 MILLION OF ALL AMERICAN HOMES IS ROUGHLY AKIN TO PICNICKING WITH A TIGER MR KAVNER SAID YOU MIGHT ENJOY THE MEAL BUT THE TIGER ALWAYS EATS LAST MR KAVNER'S SPEECH IS A PRIME EXAMPLE OF HOW PITCHED AND HYPED THE RACE TO OFFER INTERACTIVE SERVICES HAS BECOME AMONG THE RUNNERS IN ADDITION THE AT&T ATTACK COULD BE DISMISSED BY SOME AS SELFSERVING THE COMPANY AND GENERAL MAGIC INC A SILICON VALLEY STARTUP BACKED BY AT&T AND OTHER MAJOR COMPANIES INTRODUCED AT THE SHOW A NEW TECHNOLOGY THAT WILL USE ELECTRONIC AGENTS TO SIFT THROUGH THOUSANDS OF PROGRAMMING CHOICES AND THAT WILL NEED ACCESS TO THE CABLE BOXES THAT OPERATORS CONTROL MR KAVNER'S WORDS BROUGHT A STRONG REBUTTAL FROM THE CABLE INDUSTRY WE WOULD DISAGREE WITH THE GATEKEEPER MODEL AS EVIDENCED BY THE VAST ARRAY OF CREATIVE AND INNOVATIVE PROGRAMS SEEN DAILY ON CABLE TV SAID PEGGY LARAMIE A NATIONAL CABLE TELEVISION ASSOCIATION SPOKESWOMAN WHO ADDED THAT SHE HAD NOT YET SEEN THE FULL TEXT OF THE SPEECH SHE POINTED OUT THAT THERE ARE DOZENS OF NEW NETWORKS BEING LAUNCHED THIS YEAR SHE ADDED WE'RE IN A NEW ERA OF COMPETITION WHICH WILL BE MARKED BY INTEROPERABILITY AND MANY PROVIDERS CABLE EXECUTIVES HAVEN'T INDICATED WHETHER THEY PLAN TO RENT NEW SETTOP BOXES THAT WILL BE NEEDED TO ALLOW TELEVISION VIEWERS AT HOME TO INTERACT WITH VARIOUS SERVICES SUCH AS ELECTRONIC SHOPPING AND VIDEO GAMES THAT CAN BE PLAYED TOGETHER BY PEOPLE IN DIFFERENT CITIES IF THOSE BOXES ARE RENTED MR KAVNER SAID THAT WOULD SEVERELY CRIMP THE ABILITY OF CONSUMER ELECTRONICS COMPANIES TO MAKE COMPETITIVE AND PROFITABLE PRODUCTS WE BELIEVE IT'S A THREAT TO THE VERY SURVIVAL OF THE CONSUMER ELECTRONICS INDUSTRY HE SAID AT&T'S ASSAULT ON CABLE COMES AT A TIME WHEN THE CLINTON ADMINISTRATION IS CONTEMPLATING HOW TO ENSURE THAT BOTH USERS AND PROVIDERS OF THE INFORMATION HIGHWAY GAIN OPEN ACCESS VICE PRESIDENT AL GORE IS TO DISCUSS THE ISSUE NEXT TUESDAY AT A GATHERING IN LOS ANGELES WITH INDUSTRY OFFICIALS MARK ROBICHAUX IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9401070048 940107 BUSINESS BRIEF RAYTHEON CO BEECH AIRCRAFT UNIT WINS PACT VALUED AT 133 MILLION RAYTHEON CO'S BEECH AIRCRAFT UNIT SAID IT RECEIVED A 133 MILLION CONTRACT FROM THE AIR FORCE FOR PILOT TRAINING AIRCRAFT THE CONTRACT CALLS FOR 35 T1A JAYHAWK AIRCRAFT TO BE DELIVERED FROM JULY 1995 TO JUNE 1996 THE PLANE IS A MILITARY VERSION OF THE BEECHJET 400A BUSINESS JET BEECH AIRCRAFT LOCATED IN WICHITA KAN SAID IT HAS RECEIVED OVERALL AIR FORCE CONTRACTS TOTALING 628 MILLION FOR 148 JAYHAWKS THE TOTAL ORDER IS EXPECTED TO BE FOR 180 JAYHAWKS RAYTHEON WHICH IS BASED IN LEXINGTON MASS IS AN ELECTRONICS AND AEROSPACE CONCERN 9401070047 940107 US CANADA MEXICO SEEK TO SPUR NAFTA TARIFF CUTS OTTAWA THE US CANADA AND MEXICO ARE CONSIDERING INDUSTRY PROPOSALS TO SPEED UP TARIFF CUTS UNDER THE NORTH AMERICAN FREE TRADE AGREEMENT THE NAFTA ACCORD WHICH TOOK EFFECT JAN 1 REQUIRES THE THREE COUNTRIES TO REMOVE MOST TARIFFS ON EACH OTHER'S GOODS WITHIN THE NEXT 10 YEARS A CANADIAN OFFICIAL SAID PRODUCTS THAT MAY BE ALLOWED TO TRADE FREE OF TARIFF SOONER THAN PLANNED INCLUDE DRY BEANS FLAT GLASS MAJOR HOUSEHOLD APPLIANCES POTATOES WINE APPLIANCE TIMERS PADLOCKS AND VARIOUS RAILCAR COMPONENTS THE OFFICIAL SAID THE THREE COUNTRIES EXPECT TO RECEIVE INDUSTRY PROPOSALS WITHIN THE NEXT FEW WEEKS TO ACCELERATE TARIFF CUTS ON OTHER GOODS THE NAFTA ACCORD BROADENS THE FIVEYEAROLD USCANADA FREE TRADE AGREEMENT TO INCLUDE MEXICO THE US AND CANADA IN RESPONSE TO INDUSTRY REQUESTS MADE ACCELERATED TARIFF CUTS ON THREE OCCASIONS IN 1990 1991 AND 1993 UNDER THE ORIGINAL USCANADA PACT 9401070046 940107 BUSINESS BRIEF CITY HOLDING CO STOCK SWAP TO BUY THRIFT IS VALUED AT 68 MILLION CITY HOLDING CO IN CHARLESTON WVA SAID IT AGREED TO ACQUIRE LINCOLN SAVINGS BANK IN A STOCK SWAP WITH AN INDICATED VALUE OF ABOUT 68 MILLION THE MOVE MARKS CITY HOLDING'S FIRST FORAY OUTSIDE WEST VIRGINIA AND IS ITS FIFTH ACQUISITION IN THE PAST TWO YEARS THE AGREEMENT WHICH IS STILL SUBJECT TO APPROVAL OF REGULATORY AUTHORITIES AND THE SHAREHOLDERS OF BOTH COMPANIES CALLS FOR A TAXFREE EXCHANGE OF 225 SHARES OF CITY HOLDING COMMON STOCK FOR EACH SHARE OF LINCOLN SAVINGS COMMON SHARES BASED ON THE JAN 5 CLOSING PRICE OF CITY HOLDING SHARES SHAREHOLDERS OF LINCOLN SAVINGS IN CARNEGIE PA WILL RECEIVE CITY HOLDING STOCK WORTH 7594 A SHARE THE TRANSACTION EXPECTED TO BE COMPLETED IN MID1994 WILL BE ACCOUNTED FOR AS A POOLINGOFINTERESTS AND RESULT IN A MARKET CAPITALIZATION OF ABOUT 169 MILLION LINCOLN SAVINGS WHICH OPERATES SEVEN BRANCHES IN THE PITTSBURGH REGION WILL BE A WHOLLYOWNED SUBSIDIARY OF CITY HOLDING RETAINING ITS NAME AND MANAGEMENT 9401070045 940107 BUSINESS BRIEF INTERNATIONAL PAPER CO FOURTHPERIOD EARNINGS ARE LIKELY TO EXCEED ESTIMATES INTERNATIONAL PAPER CO PURCHASE NY SAID IMPROVING RESULTS AT ITS US BUSINESSES ESPECIALLY IN ITS FORESTPRODUCTS OPERATION WILL LEAD TO BETTERTHANEXPECTED FOURTHQUARTER EARNINGS THE PAPER AND FORESTPRODUCTS COMPANY SAID NET INCOME WILL BE BETWEEN 75 CENTS AND 80 CENTS A SHARE IN THE FOURTH QUARTER ENDED DEC 31 1992 NET INCOME EXCLUDING A CHARGE WAS 87 MILLION OR 71 CENTS A SHARE ON SALES OF 34 BILLION INTERNATIONAL PAPER ADDED THAT FAVORABLE PERFORMANCE AT ITS MILLING OPERATIONS ALSO WILL CONTRIBUTE TO THE STRONGERTHANEXPECTED FOURTHQUARTER PERFORMANCE THE COMPANY SAID IT EXPECTS TO RELEASE FOURTHQUARTER AND FULLYEAR EARNINGS TUESDAY IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY INTERNATIONAL PAPER FELL 875 CENTS TO 7150 THE COMPANY ANNOUNCEMENT CAME AFTER THE MARKET CLOSED 9401070044 940107 BUSINESS BRIEF SOUTHWESTERN BELL CORP COMPANY CLOSES PURCHASE OF TWO CABLETV SYSTEMS SOUTHWESTERN BELL CORP SAN ANTONIO SAID IT COMPLETED ITS 650 MILLION ACQUISITION OF TWO WASHINGTON AREA CABLETELEVISION SYSTEMS FROM CLOSELY HELD HAUSER COMMUNICATIONS INC THE REGIONAL TELEPHONE COMPANY TOOK OVER CABLE TV MONTGOMERY SERVING MONTGOMERY COUNTY MD AND CABLE TV ARLINGTON SERVING ARLINGTON COUNTY VA AFTER RECEIVING THE NECESSARY REGULATORY AND LICENSING APPROVALS THE TRANSACTION WAS FIRST ANNOUNCED IN FEBRUARY 1993 9401070042 940107 WHAT'S NEWS WORLDWIDE SARAJEVO SUFFERED INTENSE SERB SHELLING AND FIGHTING FLARED ACROSS BOSNIA BOSNIA'S CAPITAL WAS HIT BY 732 SHELLS BEFORE NOON UN MONITORS SAID LOCAL AUTHORITIES REPORTED EIGHT PEOPLE KILLED INCLUDING A TWOMONTHOLD BABY AND 61 WOUNDED INCLUDING SEVERAL FRENCH PEACEKEEPERS FOR SARAJEVO THIS IS ONE OF THE WORST DAYS SINCE THE BEGINNING OF THE AGGRESSION STATERUN BOSNIAN RADIO SAID CLASHES ACROSS THE FORMER YUGOSLAV REPUBLIC DIMMED PROPECTS FOR JAN 18 GENEVA PEACE TALKS SEPARATELY A FORMER AMERICAN AMBASSADOR TO YUGOSLAVIA BECAME THE FIFTH US CAREER DIPLOMAT IN 17 MONTHS TO RESIGN FROM THE FOREIGN SERVICE BECAUSE OF DISAGREEMENT WITH US POLICY TOWARD BOSNIA THE US AMBASSADOR TO THE UN SHAKEN BY A VISIT TO A MASS GRAVE IN CROATIA FOR AS MANY AS 300 PEOPLE BELIEVED EXECUTED BY SERBS SAID THAT THE WORLD MUST KNOW THE DREADFUL STORY ATTORNEY GENERAL RENO IS LIKELY TO SEEK APPOINTMENT OF AN INDEPENDENT COUNSEL TO PROBE CLINTON'S ROLE IN AN ARKANSAS VENTURE IF CONGRESS PASSES A NEW ETHICS LAW ENABLING SUCH AN APPOINTMENT AND IF THE REENACTED LAW IS APPROPRIATE FOR THIS CASE THE OLD LAW PROVIDING FOR COURTNAMED INDEPENDENT COUNSELS TO INVESTIGATE HIGHLEVEL ADMINISTRATION OFFICIALS EXPIRED A YEAR AGO MEXICO'S PRESIDENT DECLARED THAT A SIXDAY UPRISING IN THE SOUTHERN STATE OF CHIAPAS WASN'T AN INDIAN REBELLION AND THAT THE INDIGENOUS POPULATION HAD REJECTED THE VIOLENCE SALINAS SPOKE AS THOUSANDS OF TROOPS PUSHED THROUGH THE EMBATTLED REGION DRIVING THE REBELS INTO THE HILLS PRESIDENT CLINTON FLEW FROM WASHINGTON TO HOT SPRINGS ARK TO BEGIN MAKING FUNERAL ARRANGEMENTS FOR HIS MOTHER VIRGINIA KELLEY 70 WHO DIED EARLY YESTERDAY FROM COMPLICATIONS RELATED TO BREAST CANCER THE FUNERAL WILL BE TOMORROW MORNING THE US WOULD BE FOOLISH TO IGNORE THE STRONG SHOWING OF EXTREME NATIONALISTS IN RUSSIAN ELECTIONS GORE SAID BUT SUCH CONCERNS ARE NO REASON TO STEER CLEAR HE SAID SUBBING FOR CLINTON THE VICE PRESIDENT OUTLINED THE ADMINISTRATION'S VIEW OF THE IMPORTANCE OF US INVOLVEMENT IN EUROPE AND RUSSIA ISRAEL ANNOUNCED THAT IT WOULD RELEASE 101 PALESTINIAN PRISONERS FROM THE GAZA STRIP AND WEST BANK TODAY AS A GOODWILL GESTURE ISRAEL AND THE PLO REPORTEDLY ARE PLANNING TO RESUME TALKS IN EGYPT ON MONDAY CONCERNING AN ISRAELI TROOP WITHDRAWAL FROM GAZA AND JERICHO THE EPA PROPOSED DOUBLING THE NUMBER OF CHEMICALS WHOSE RELEASE INTO WATER OR AIR MUST BE REPORTED TO THE AGENCY BY MANUFACTURERS THE AGENCY SAID 313 CHEMICALS SHOULD BE ADDED TO THE LIST OF 320 CHEMICALS WHOSE EMISSIONS MANUFACTURERS ARE REQUIRED TO REPORT FOR AN ANNUAL EPA TOXIC RELEASE INVENTORY DEFENSE SECRETARY ASPIN SENT BACK FOR FURTHER REVIEW A DOCUMENT DEFINING RULES FOR WOMEN IN COMBAT A DEFENSE OFFICIAL SAID ASPIN WASN'T SATISFIED THAT THE DRAFT RULES DRAWN UP BY THE PENTAGON WITH ARMY AND MARINE CORPS INPUT SUFFICIENTLY OPENED COMBAT JOBS TO WOMEN THE RULES WERE TO HAVE BEEN MADE PUBLIC THIS WEEK THE WHITE HOUSE TOLD STATES THEY MUST COMPLY WITH A RULE REQUIRING THEM TO PAY FOR ABORTIONS FOR POOR WOMEN WHO ARE VICTIMS OF RAPE OR INCEST OBJECTIONS TO THE NEW ADMINISTRATION POLICY HAVE COME FROM SOME STATES THAT HAVE LAWS PERMITTING MEDICAIDFUNDED ABORTION ONLY IN CASES WHERE A MOTHER'S LIFE IS IN DANGER OHIO'S SEN GLENN URGED EXPANSION OF A FEDERAL INVESTIGATION ON RADIATION TESTING TO INCLUDE EXPERIMENTS WITH DRUGS CHEMICALS AND PESTICIDES THE DEMOCRATIC LAWMAKER SAID IT COULDN'T BE STATED WITH CERTAINTY THAT SUCH EXPERIMENTS CONDUCTED ON US CITIZENS WITHOUT THEIR INFORMED CONSENT WERE NO LONGER TAKING PLACE UN CHIEF BOUTROSGHALI PLANS TO RECOMMEND SHORTLY THAT A REDUCED FORCE OF AT LEAST 15000 TROOPS STAY IN SOMALIA AFTER THE US WITHDRAWS ITS SOLDIERS IN MARCH A SENIOR UN OFFICIAL SAID THE CURRENT UN TROOP LEVEL THERE IS 28000 THE UN IS PUSHING THE BAGHDAD GOVERNMENT TO SELL A ONETIME LIMITED QUANTITY OF OIL ARGUING THAT SUCH A MOVE WOULD HELP LEAD TO RATHER THAN DETRACT FROM A FULL LIFTING OF AN INTERNATIONAL OIL EMBARGO IN THE FUTURE THE IRAQIS ARE BEING URGED BY UN AUTHORITIES TO SELL 16 BILLION IN OIL FOR HUMANITARIAN AID AND TO DEFRAY OTHER UN COSTS 9401070041 940107 PIER 1 IMPORT SALES CLIMB 118 FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FIVE WEEKS ENDED JAN 1 ROSE 118 TO 972 MILLION FROM 869 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR INCREASED 68 YEARTODATE SALES JUMPED 92 TO 6006 MILLION FROM 5503 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR WERE UP 54 IN THE YEARTODATE PERIOD 9401070040 940107 BUSINESS BRIEF MORNINGSTAR GROUP INC DAIRY BUSINESS TO BE SOLD PAYOUT WILL BE SUSPENDED MORNINGSTAR GROUP INC DALLAS SAID IT IS SELLING ITS FLORIDA DAIRY BUSINESS FOR 48 MILLION REORGANIZING THE REST OF THE COMPANY'S OPERATIONS AND SUSPENDING ITS DIVIDEND THE DAIRY BUSINESS MIAMIBASED VELDA FARMS ACCOUNTS FOR 130 MILLION OF MORNINGSTAR'S ROUGHLY 400 MILLION IN ANNUAL SALES THE SPECIALTYFOODPRODUCTS COMPANY SAID IT SIGNED A LETTER OF INTENT TO SELL VELDA BUT WOULDN'T IDENTIFY THE BUYER THE REORGANIZATION WHICH WILL INVOLVE AN UNSPECIFIED NUMBER OF JOB CUTS IS EXPECTED TO SAVE AT LEAST 5 MILLION A YEAR IT IS RESULTING IN A 9 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS MORNINGSTAR SAID IT WILL SUSPEND ITS DIVIDEND AFTER PAYMENT ON JAN 20 OF AN ALREADY DECLARED 375CENT DIVIDEND TO STOCK OF RECORD DEC 31 THE MOVES ARE THE COMPANY'S FIRST MAJOR STEPS SINCE C DEAN METROPOLOUS FORMER PRESIDENT AND CHIEF EXECUTIVE OF STELLA FOODS INC WAS NAMED CHAIRMAN 9401070039 940107 BUSINESS BRIEF ULTRALIFE BATTERIES INC PREPAYMENT OF KODAK NOTE COMPLETES ASSET PURCHASE ULTRALIFE BATTERIES INC SAID IT PAID ABOUT 2 MILLION TO EASTMAN KODAK CO IN FINAL SETTLEMENT OF A NOTE PAYABLE FUTURE ROYALTIES PAST INVENTORY PURCHASES AND ACCRUED INTEREST ON THE PROMISSORY NOTE ULTRALIFE BASED IN NEWARK NY WAS FORMED IN 1991 WHEN IT AGREED TO ACQUIRE LITHIUMBATTERY TECHNOLOGY AND THE ULTRALIFE BRAND NAME FROM KODAK ROCHESTER NY ULTRALIFE SAID THE PROMISSORY NOTE IN THE AMOUNT OF 18 MILLION AND ACCRUED INTEREST WAS DUE MARCH 12 1997 ULTRALIFE SAID PREPAYMENT COMPLETES ALL OBLIGATIONS UNDER THE ASSET PURCHASE AGREEMENT BETWEEN ULTRALIFE AND KODAK SEPARATELY ULTRALIFE SAID IT HAS BEEN NOTIFIED THAT IT WON A 750000 US ARMY CONTRACT FOR DEVELOPMENT OF HIGHENERGY LITHIUM BATTERIES UNDER THE CONTRACT WHICH THE COMPANY SAID IT PLANS TO FINALIZE SHORTLY IT WILL PROVIDE THE ARMY WITH A LITHIUM MANGANESE DIOXIDE BATTERY 9401070038 940107 INTERNATIONAL BRIEF DIXONS PLC LOSS TOTALED 2927 MILLION FOR 6 MONTHS ENDED NOV 13 DIXONS PLC A UK ELECTRONICS CONCERN SAID IT HAD A PRETAX LOSS OF 1967 MILLION 2927 MILLION IN THE SIX MONTHS ENDED NOV 13 AFTER AN EXCEPTIONAL LOSS OF 2105 MILLION THE LOSS COMPARED WITH PROFIT OF 14 MILLION A YEAR EARLIER SALES ROSE 25 TO 11 BILLION 164 BILLION FROM 8734 MILLION DIXONS SAID HOLIDAY SALES WERE CLOSE TO A YEAR EARLIER AND UK RETAIL OPERATING PROFIT FOR THE CURRENT FINANCIAL YEAR NOW APPEARS UNLIKELY TO EQUAL LAST YEAR'S LEVEL ON THE LONDON STOCK EXCHANGE STORES SHARES ENDED GENERALLY WEAKER AFTER DIXONS NOTED THE FLAT HOLIDAY SALES DIXON FELL 15 TO 240 PENCE 3571 FROM 283 PENCE THE EXCEPTIONAL LOSS OF 2105 MILLION WAS DUE TO THE DISPOSAL OF ITS SILO RETAILING UNIT IN THE US IN SEPTEMBER BEFORE EXCEPTIONALS DIXONS PRETAX PROFIT WAS 173 MILLION 9401070037 940107 CREDIT MARKETS BOND PRICES SURGE ON RISE IN JOBLESS CLAIMS REICH FORECAST FOR JOBS REPORT DUE OUT TODAY BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOTION SICKNESS NOT EUPHORIA IS WHAT BOND MARKET PLAYERS ARE FEELING AFTER YESTERDAY'S RALLY THAT'S BECAUSE FOR THE FOURTH CONSECUTIVE SESSION BOND PRICES SHARPLY REVERSED THEMSELVES ON MONDAY THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED A POINT OR 10 FOR A BOND WITH 1000 FACE VALUE ON TUESDAY IT ROSE NEARLY A POINT ON WEDNESDAY IT DROPPED 3/4 POINT AND YESTERDAY IT ROSE 3/4 POINT TO 98 21/32 VERY CLOSE TO WHERE IT STARTED THE WEEK TO YIELD 634 PART OF THE REASON FOR THE ROCKY RIDE IS WORRY ABOUT THE STATE OF THE NATION'S ECONOMY AFTER ECONOMIC GROWTH PICKED UP IN THE FOURTH QUARTER OF LAST YEAR INVESTORS ARE BEGINNING TO BELIEVE THAT GROWTH COULD CONTINUE THIS QUARTER GREATER ECONOMIC GROWTH COULD MEAN HIGHER INFLATION WHICH HURTS BOND RETURNS THERE WERE TWO FACTORS RESPONSIBLE FOR YESTERDAY'S PRICE BOUNCE ONE WAS A REPORT ON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE WHICH SHOWED A LARGER JUMP THAN EXPECTED FOR THE WEEK ENDED JAN 1 THE OTHER WAS LABOR SECRETARY ROBERT REICH WHO OFFERED HIS OWN PREDICTION FOR THE STATE OF THE COUNTRY'S JOB MARKET WITH THE OFFICIAL REPORT DUE TO BE RELEASED THIS MORNING AND MR REICH'S PRESUMED ACCESS TO ALL THE LATEST EMPLOYMENT DATA THE BOND MARKET TOOK MR REICH'S ESTIMATE AT FACE VALUE AND RALLIED THAT'S BECAUSE MR REICH'S PERSONAL ESTIMATE SHOWED FEWER JOBS BEING CREATED IN DECEMBER THAN MANY ON WALL STREET HAVE BEEN EXPECTING THIS WAS A RELIEF TO MANY BOND INVESTORS WHO HAD BEEN WORRYING THAT THE REPORT MIGHT SHOW A SURPRISING JUMP BUT MR REICH'S OFFICE DENIED THAT HE HAD ANY ADVANCE KNOWLEDGE OF THE DATA HE HAS NO IDEA ABOUT WHAT THE NUMBER WILL BE A SPOKESPERSON FOR MR REICH SAID HE WAS SIMPLY MAKING AN ESTIMATE BUT MANY BOND TRADERS SHRUGGED OFF THE COMMENTS FROM MR REICH'S OFFICE AND CONTINUED TO ASSUME THAT MR REICH'S ESTIMATE OF 160000 TO 200000 NEW NONFARM POSITIONS IN DECEMBER WOULD COME CLOSE TO THE FINAL REPORTED NUMBER OF THE LABOR DEPARTMENT'S ATTEMPTS TO PUT A DIFFERENT SPIN ON THE REMARKS ONE HEAD BOND TRADER REMARKED THAT'S LIKE SAYING HE'S ONLY MAKING A PERSONAL ESTIMATE OF HIS OWN SALARY GIVEN THE INFORMATION THAT ONE WOULD THINK HE HAS ACCESS TO SAID JOHN COSTAS HEAD OF GOVERNMENTBOND TRADING AT CS FIRST BOSTON INC IT'S A HIGHLY CREDIBLE ESTIMATE THE BOND MARKET HAD BEEN BRACING FOR A LARGER INCREASE OF AT LEAST 225000 IN NONFARM PAYROLL EMPLOYMENT AND THE COMMENTS PROVOKED A ROUND OF BUYING AS TRADERS ASSUMED THAT MR REICH KNEW FOR A FACT WHAT THE REPORT WOULD SHOW PRICES BEGAN TO MOVE HIGHER IN EARLY TRADING AFTER MR REICH MADE HIS COMMENTS DURING A TELECONFERENCE BROADCAST FROM WASHINGTON TO AN ECONOMIC CONFERENCE IN PARIS ACCORDING TO GEORGE WERKING CHIEF OF THE DIVISION OF MONTHLY INDUSTRY EMPLOYMENT AT THE BUREAU OF LABOR STATISTICS WHICH PRODUCES THE PAYROLL STATISTICS MR REICH COULDN'T YET HAVE KNOWN THE ACTUAL FIGURES THE DATA ARE UNDER LOCK AND KEY AT BLS HE SAID MR WERKING SAID MR REICH WOULD BE BRIEFED ON THE REPORT EARLY FRIDAY MORNING BEFORE THE CONFUSION OVER MR REICH'S COMMENTS COULD BE CLEARED UP INITIAL JOBLESS CLAIMS WERE REPORTED UP A GREATERTHANEXPECTED 70000 TO 363000 FOR THE WEEK ENDED JAN 1 ANALYSTS SAID THE CLAIMS DATA ARE TYPICALLY VERY VOLATILE DURING THE HOLIDAY SEASON AND THAT THE RISE WAS SIMPLY A REBOUND FROM THE PREVIOUS WEEK BUT COMING ON THE HEELS OF MR REICH'S REMARKS THE FIGURES MERELY ADDED FUEL TO THE FIRE AND BOND PRICES SURGED THE COMBINATION OF THE TWO WAS PRETTY DAMN POWERFUL SAID MR COSTAS OF FIRST BOSTON CONTRIBUTING TO THE RALLY WAS A NEGATIVE BIAS ON WALL STREET AGAINST THE BOND MARKET SAID MR COSTAS MANY WALL STREET FIRMS EITHER DIDN'T OWN ENOUGH BONDS TO MEET DEMAND YESTERDAY OR HAD ACTUALLY SOLD SHORT TO PROFIT FROM AN EXPECTED DROP IN BOND PRICES SAID MR COSTAS THE RESULT WAS THAT FIRMS WERE FORCED TO BUY BONDS IN THE OPEN MARKET WHICH ADDED TO THE RALLY A TRADER TAKES A SHORT POSITION BY SELLING A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE THE COMBINATION OF THE INITIAL CLAIMS DATA AND MR REICH'S STATEMENT CAUGHT THE MARKET SHORT SAID MARCELLO FRUSTACI A TRADER AT DAIWA SECURITIES AMERICA INC AND DESPITE THE CLARIFICATIONS OF MR REICH'S REMARK AND A BELIEF THAT THE CLAIMS RISE WAS FLUKE THE BOND PRICES SUSTAINED THEIR GAINS THE TIMING OF MR REICH'S COMMENTS PUZZLED MANY TRADERS AND ANALYSTS IN THE BOND MARKET GIVEN THE FACT THAT HE'S THE SECRETARY OF LABOR IT STANDS TO REASON THAT HE HAS A CONCEPT OF THE NUMBER SAID DONALD FINE CHIEF MARKET ANALYST AT CHASE SECURITIES INC WHO ADDED THAT IT MAY NOT NECESSARILY BE THE FINAL NUMBER BUT MR FINE SAID IT'S FAIR TO SAY THAT IF HE'S FAR FROM THE MARK WHEN THE NUMBERS ARE ANNOUNCED THIS MORNING THERE WILL BE A CREDIBILITY PROBLEM AND IF MR REICH'S PREDICTION WAS ACCURATE POINTED OUT WILLIAM SULLIVAN A SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC IT RAISES THE QUESTION OF WHETHER AN OFFICIAL NEWS EMBARGO ON THE EMPLOYMENT REPORT IS BEING OBSERVED ACCORDING TO ANALYSTS SURVEYED BY DOW JONES CAPITAL MARKETS REPORT NONFARM PAYROLL EMPLOYMENT SHOULD POST AN INCREASE OF 239000 THAT WOULD FOLLOW A 208000 INCREASE REGISTERED IN NOVEMBER THE UNEMPLOYMENT RATE MEANWHILE IS EXPECTED TO RISE TO 65 FROM 64 MEANWHILE YESTERDAY THE TREASURY SOLD 1603 BILLION OF ONEYEAR BILLS AT AN AVERAGE DISCOUNT RATE OF 352 HERE ARE DETAILS FROM THE AUCTION 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 COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED JAN 13 AND MATURE JAN 12 1995 ISSUERS SOLD 141 BILLION OF CORPORATE DEBT PRIMARILY IN SHORTER MATURITIES FORD MOTOR CREDIT CO A UNIT OF FORD MOTOR CO WAS ABLE TO TAKE ADVANTAGE OF IMPROVING YIELD SPREADS AMONG AUTOMOBILECOMPANY BONDS TO SELL 500 MILLION OF DEBT A YIELD SPREAD IS THE DIFFERENCE BETWEEN TREASURY AND CORPORATE BOND YIELDS A NARROWER YIELD SPREAD CAN BE A SIGN OF INCREASING DEMAND FOR A COMPANY'S BONDS AS WELL AS IMPROVEMENT IN ITS BALANCE SHEETS FORD SOLD FIVEYEAR NOTES WITH 5625 COUPONS AT 99857 TO YIELD 5658 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 045 PERCENTAGE POINT ABOVE TREASURYS WITH COMPARABLE MATURITIES THE NOTES ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP AND WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC PRICES OF INVESTMENTGRADE BONDS FOLLOWED THE TREASURY MARKET HIGHER WHILE MANY PRICES IN THE JUNKBOND MARKET ALSO ROSE CANADIAN YANKEE BONDS OR DOLLARDENOMINATED DEBT SOLD BY CANADIAN ENTITIES IN THIS COUNTRY IMPROVED SLIGHTLY YESTERDAY THERE WAS ACTIVE BUYING BY DEALERS WHILE INVESTORS REACTED TO NEWS THAT UTILITY HYDROQUEBEC PLANS TO ISSUE 1 BILLION CANADIAN DOLLARS 7576 MILLION OF 10YEAR GLOBAL BONDS TRADERS SAID PRICES OF MOST MUNICIPAL BONDS ENDED HIGHER BUT BUYING WAS LIMITED BEFORE THE RELEASE OF THE DECEMBER EMPLOYMENT DATA IN SECONDARY TRADING CHICAGO'S 575 GASSUPPLY REVENUE BONDS OF 2023 CLOSED 1/8 POINT HIGHER AT 98 7/8 TO YIELD 580 IN THE PRIMARY MARKET A PAINEWEBBER INC GROUP SET YIELDS FOR THE CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY'S 3338 MILLION ISSUE OF REFUNDING BONDS THERE WAS A REPRICING YESTERDAY AFTERNOON DUE TO STRONG DEMAND AND SOME YIELDS WERE LOWERED 003 TO 005 PERCENTAGE POINT FOR BOTH THE 1306 MILLION OF 1994 SERIES A HEALTH FACILITY REFUNDING REVENUE BONDS AND THE 2032 MILLION OF 1994 SERIES B HEALTH FACILITY REFUNDING REVENUE BONDS AFTER THE REPRICING THE 1994 SERIES A BONDS WERE PRICED TO YIELD FROM 234 IN 1994 TO 542 IN 2019 THOSE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE 1994 SERIES B BONDS WERE PRICED TO YIELD FROM 234 IN 1994 TO 547 IN 2021 THEY ARE INSURED BY AMBAC INDEMNITY CORP AND ALSO CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P PRICES OF MORTGAGE SECURITIES MOVED HIGHER THOUGH NOT MATCHING THE GAINS OF THE TREASURY MARKET MORTGAGES OFTEN LAG BEHIND TREASURYS IN A MARKET RALLY IN PART BECAUSE OF THE PREPAYMENT CONCERNS THAT GREET ANY SLIP IN RATES BUT MORTGAGES ALSO MAY HAVE BEEN UNDER SOME PRESSURE AFTER HAVING REACHED FAIRLY HIGH LEVELS THE YIELDS ON CURRENT COUPONS OR MORTGAGES WITH COUPONS OF 65 HAVE NARROWED CONSIDERABLY TO THE BENCHMARK TREASURY 10YEAR NOTE SINCE LAST FRIDAY AS DEALERS HAVE SCOOPED UP COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT TRUSTS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FOR JANUARY DELIVERY ENDED 8/32 HIGHER AT 99 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ENDED 9/32 HIGHER AT 99 14/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES ENDED 9/32 HIGHER AT 99 10/32 DESPITE YESTERDAY'S DROP IN RATES THE PREVAILING VIEW IN THE MORTGAGE MARKET IS THAT PREPAYMENTS DUE TO HOMELOAN REFINANCINGS WILL SLOW MARKEDLY THIS YEAR THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9401070036 940107 BUSINESS BRIEF ASAHI BREWERIES LTD VENTURE WITH ITOCHU TO BUY 75 STAKE IN CSI BREWERY JAPANESE CONCERNS ASAHI BREWERIES LTD AND ITOCHU CORP ANNOUNCED THURSDAY THAT THEY REACHED AN AGREEMENT TO BUY A 75 STAKE IN HONG KONGBASED CSI BREWERY LTD FROM CHINA STRATEGIC INVESTMENT LTD THE PURCHASE GIVES THE BEER MAKER AND THE TRADING HOUSE MANAGEMENT RIGHTS OVER THREE BREWERS IN CHINA HONGZHOU ZHONGCE BEER CO QUANZHOU CSI BEER CO AND HONGZHOU ZHONGCE BEER CO'S JIAXING CO THE INVESTMENT INCLUDING VALUE OF SHARES AND OUTLAYS TO EXPAND PRODUCTION EQUIPMENT AT HONGZHOU ZHONGCE TOTALS ABOUT 35 MILLION AN ASAHI SPOKESMAN SAID ASAHI BREWERIES WILL PROVIDE TECHNICAL SUPPORT AND WILL LICENSE PRODUCTION TO THE THREE BREWERIES IN CHINA THE TWO JAPANESE COMPANIES WILL CONTROL THE BREWERIES THROUGH A STAKE IN CHINA STRATEGIC INVESTMENT OF WHICH ASAHI BREWERIES WILL TAKE 45 WHILE ITOCHU WILL HOLD 30 OF THE HONG KONGBASED COMPANY 9401070035 940107 BUSINESS BRIEF GENERAL ELECTRIC CO UNIT PLANS TO OFFER A LINE OF FUNDS THROUGH BANKS GENERAL ELECTRIC CO STAMFORD CONN SAID ITS GE INVESTMENTS UNIT WILL OFFER A LINE OF MUTUAL FUNDS THROUGH BANKS THE FAMILY OF SIX FUNDS WAS LAUNCHED A YEAR AGO BUT THEY HAVEN'T BEEN AVAILABLE THROUGH BANKS INCLUDED ARE US EQUITY GLOBAL EQUITY TAXEXEMPT FIXED INCOME STRATEGIC INVESTMENT AND MONEYMARKET MUTUAL FUNDS GE INVESTMENTS WHICH CURRENTLY MANAGES ABOUT 9 BILLION IN MUTUAL FUNDS FOR EMPLOYEES AS WELL AS SAVINGS AND BENEFIT PLANS SAID THE NEW MUTUAL FUNDS WILL INITIALLY BE OFFERED THROUGH NEW YORKBASED CHEMICAL BANKING CORP AND FOUNDERS BANK NAPLES FLA 9401070034 940107 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION COLOMBIA AN OFFERING OF UP TO 200 MILLION OF NOTES VIA MERRILL LYNCH & CO JP MORGAN SECURITIES INC AND SALOMON BROTHERS INC EASTMAN CHEMICAL CO A SHELF OFFERING FOR 900 MILLION OF DEBT SECURITIES VIA GOLDMAN SACHS & CO MERRILL LYNCH AND MORGAN STANLEY & CO HEALTHDYNE INC AN OFFERING OF 1720000 COMMON SHARES AND A PARTIAL EXCHANGE OFFERING UPON EFFECTIVENESS OF THE REGISTRATION STATEMENT FOR 2150000 SHARES OF THE COMMON STOCK OF ITS HOME NUTRITIONAL SERVICES INC UNIT BASED ON 08 SHARE OF HEALTHDYNE STOCK FOR EACH SHARE OF HOME NUTRITIONAL SERVICES STOCK TENDERED LA T SPORTSWEAR INC AN INITIAL OFFERING OF 12 MILLION COMMON SHARES VIA ROBINSONHUMPHREY CO 9401070033 940107 POTOMAC WATCH WHAT DID HE KNOW AND WHEN DID HE KNOW IT BY PAUL A GIGOT WHEN THE WHITE HOUSE SACKED EVERY SITTING US ATTORNEY LAST MARCH THIS SPACE HYPERBOLICALLY DEPLORED THE MOST SECRETIVE AND DEEPLY POLITICAL ADMINISTRATION SINCE RICHARD NIXON'S BY NOW THAT LOOKS UNDERSTATED WHITEWATER MAY NOT BE WATERGATE BUT THE CLINTON WHITE HOUSE'S SKILL IN HANDLING THE REAL ESTATES&L SUSPICIONS HAS CERTAINLY EARNED IT THE RIGHT TO BE CALLED NIXONIAN ITS GIFT FOR INSPIRING SUSPICION IN REPORTERS ITS MASTERY OF THE SELFINFLICTED WOUND AND ITS TALENT FOR SEEMING UNCOOPERATIVE AND SLIPPERY ARE ALL QUALITIES WORTHY OF THE MASTER HIMSELF HAVING WORKED AS STAFFERS ON THE HOUSE COMMITTEE TO IMPEACH MR NIXON HILLARY CLINTON AND WHITE HOUSE COUNSEL BERNIE NUSSBAUM MAY HAVE ABSORBED MORE POLITICAL LESSONS THAN THEY EVER IMAGINED AS JOHN LE CARRE ONCE WROTE ABOUT THE CIA AND KGB MAYBE THEY FOUGHT A LOOKINGGLASS WAR LET'S EXAMINE HOW THE CLINTONS HAVE TURNED A SEEMINGLY SMALL SCANDAL INTO A POTENTIALLY MUCH BIGGER ONE INVOLVING THE ABUSE OF PRESIDENTIAL POWER THE NONDENIAL DENIAL THIS WHITE HOUSE IS ADEPT AT NOT GIVING A STRAIGHT ANSWER SO WHITEWATER WAS JUST OLD STORIES THAT WERE ALREADY INVESTIGATED NATURALLY THESE DISMISSALS NONDENIALS ONLY RAISED SUSPICIONS WHEN REPORTERS DISCOVERED NEW STORIES EG THAT THE LAWYER RETAINED BY THE CLINTONS TO INVESTIGATE WHITEWATER IN 1992 HAD IGNORED LARGE TRANSACTIONS THE COVERUP WHEN VINCENT FOSTER THE CLINTONS' PERSONAL LAWYER SHOT HIMSELF IN SECLUDED FORT MARCY LAST SUMMER THE WHITE HOUSE RESPONSE WAS TO BLAME THE PRESS A CHORUS LINE OF COMMENTARY ACCUSED THIS NEWSPAPER IN PARTICULAR BUT WE'VE SINCE LEARNED THAT THE TROUBLED MR FOSTER HAD MORE ON HIS MIND THAN TART EDITORIALS AS THE LAWYER PUTTING TOGETHER THE CLINTONS' PRESIDENTIAL BLIND TRUST HE HANDLED THE FIRST COUPLE'S PERSONAL FINANCES YET HE WAS WELL BEHIND THE PACE OF ANY RECENT PRESIDENCY IN ESTABLISHING THAT BLIND TRUST WHICH WAS FINALLY AND QUIETLY FILED A WEEK AFTER HE DIED WHAT TOOK SO LONG ON THE DAY HE DIED MR FOSTER RECEIVED A PHONE CALL FROM JAMES LYONS THE LAWYER HE'D HIRED TO FILE THE CLINTONS' 1992 WHITEWATER REPORT ON THE SAME DAY TOO A SUBPOENA WAS ISSUED TO SEARCH THE LITTLE ROCK OFFICES OF DAVID HALE A FORMER JUDGE APPOINTED BY MR CLINTON MR HALE HAS SINCE BEEN INDICTED AND HAS ACCUSED MR CLINTON OF BENEFITING FROM A 300000 LOAN MR HALE MADE TO A BUSINESS PARTNER OF THE CLINTONS PERHAPS THESE ARE COINCIDENCES BUT THEY RAISE DOUBTS ESPECIALLY BECAUSE THE WHITE HOUSE HAS BEEN SO EAGER TO BLUNT QUERIES ABOUT MR FOSTER THE PROBE OF HIS DEATH WAS CONFINED TO THE PARK POLICE WHO HAVE NO EXPERTISE IN MYSTERIOUS DEATHS THEIR REPORT ALSO REMAINS A SECRET THOUGH THE JUSTICE DEPARTMENT PROMISED TO MAKE IT PUBLIC AND DON'T FORGET THE EARLY SACKING OF THOSE US ATTORNEYS THAT MEANT MR CLINTON COULD NOMINATE PAULA CASEY A FORMER CAMPAIGN WORKER OF HIS TO THE LITTLE ROCK US ATTORNEY'S POST THAT WOULD INVESTIGATE WHITEWATER SHE HAS SINCE RECUSED HERSELF BUT NOT BEFORE RECOMMENDING TO WASHINGTON THAT A CRIMINAL REFERRAL OF THE CASE TO JUSTICE BY THE RESOLUTION TRUST CORP NOT BE PURSUED A MODIFIED LIMITED HANGOUT CLINTON SPINMEISTERS KNOW THE ZIEGLERESQUE VALUE OF APPEARING TO BE FORTHCOMING EVEN WHILE STONEWALLING SO A DEC 23 DECISION TO RELEASE WHITEWATER DOCUMENTS TAKEN IN SECRET FROM MR FOSTER'S OFFICE WAS HAILED BY THE LIKES OF GEORGE STEPHANOPOULOS AS COMING CLEAN BUT NOW WE LEARN THAT THIS DISCLOSURE WAS RIGGED BY THE WHITE HOUSE SO AS TO AVOID HAVING TO MAKE ANY DOCUMENTS PUBLIC BY CONSPIRING TO HAVE JUSTICE ISSUE A SUBPOENA FOR THE DOCUMENTS THE WHITE HOUSE MADE SURE NOSY REPORTERS CAN'T OBTAIN THOSE DOCUMENTS UNDER THE FREEDOM OF INFORMATION ACT BILL CLINTON HAS ONE ADVANTAGE RICHARD NIXON NEVER HAD A CONGRESS OF HIS OWN PARTY HOUSE BANKING CHAIRMAN HENRY GONZALEZ WHO DID YEOMAN WORK ON THE KEATING FIVE HAS SUDDENLY LOST INTEREST IN S&LS THAT'S WHY EVEN IOWA REPUBLICAN JIM LEACH THE LEAST PARTISAN MEMBER OF CONGRESS HAS CALLED FOR A SPECIAL COUNSEL THIS IS NOT DESPITE CLAIMS BY CLINTON PARTISANS THE SAME THING AS A LAWRENCE WALSHTYPE INDEPENDENT COUNSEL BARNEY FRANK D MASS WANTS TO USE WHITEWATER TO REVIVE THAT LAW RAMMING IT THROUGH THE HOUSE WITHOUT ALLOWING A VOTE ON WHETHER IT SHOULD COVER CONGRESS AS WELL AS THE EXECUTIVE BRANCH BUT THIS COULD ACTUALLY HELP A COVERUP BECAUSE A WHITEWATER WALSH COULD KEEP DOCUMENTS UNDER WRAPS FOR YEARS AS SCHOLAR TERRY EASTLAND REMINDS ME WATERGATE AND EVEN TEAPOT DOME WERE INVESTIGATED BY SPECIAL PROSECUTORS WITHOUT THE RUNAWAY HAIRTRIGGER WALSHTYPE STATUTE WHITEWATER COULD BE AS WELL IF THE COUNSEL WERE SOMEONE WITH THE PROVEN INTEGRITY OF MANHATTAN DA ROBERT MORGENTHAU SUCH A COUNSEL WOULD AT LEAST BE SUBJECT TO POLITICAL CONSTRAINTS THE WAY A WALSHTYPE COUNSEL ISN'T EVEN BETTER WOULD BE A TELEVISED CONGRESSIONAL HEARING A LA THE KEATING FIVE SO VOTERS COULD DECIDE FOR THEMSELVES WITH AN ADMINISTRATION AS NIXONIAN AS THIS ONE HOW ELSE IS IT GOING TO RESTORE ITS CREDIBILITY 9401070032 940107 INTERNATIONAL BRIEF AIRBUS INDUSTRIE EUROPE'S AIRCRAFT ALLIANCE POSTS 78 REVENUE INCREASE AIRBUS INDUSTRIE EUROPE'S LARGE COMMERCIAL AIRCRAFT CONSORTIUM SAID ITS REVENUE ROSE 78 IN 1993 TO 83 BILLION DESPITE A DEPRESSED MARKET THE GROUP CONSISTING OF AEROSPATIALE SA OF FRANCE DAIMLERBENZ AG'S DEUTSCHE AEROSPACEAIRBUS GMBH OF GERMANY BRITISH AEROSPACE PLC OF THE UK AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN SAID IT SAW SOME SIGNS IN 1993 THAT THE MARKET DOWNTURN WAS BOTTOMING OUT WITH SOME AIRLINES APPARENTLY MOVING OUT OF THE RED IT ADDED THERE ARE GROUNDS FOR CAUTIOUS OPTIMISM BUT AIRBUS INDUSTRIE SAID IT DOESN'T ANTICIPATE A FULL RECOVERY IN DEMAND FOR AIRLINERS BEFORE THE SECOND HALF OF THE DECADE UNDERLINING THE WEAKNESS OF THE MARKET THE CONSORTIUM BOOKED 38 NEW FIRM ORDERS LAST YEAR VALUED AT 35 BILLION COMPARED WITH 136 ORDERS VALUED AT 98 BILLION IN 1992 THE NEW ORDERS HOWEVER WERE MORE THAN OFFSET BY 69 CANCELLATIONS 9401070031 940107 BUSINESS BRIEF HEALTHSOUTH REHABILITATION CORP DEAL WITH NATIONAL MEDICAL FOR HOSPITALS IS COMPLETED HEALTHSOUTH REHABILITATION CORP BIRMINGHAM ALA SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF 28 REHABILITATION HOSPITALS AND 45 OUTPATIENT CENTERS FROM NATIONAL MEDICAL ENTERPRISES INC REHABILITATION HOSPITALS OFFER INTENSIVE TREATMENT TO HELP PATIENTS IMPROVE THEIR PHYSICAL CAPABILITIES AFTER A STROKE WORKPLACE INJURY OR OTHER TRAUMA NATIONAL MEDICAL SAID IT PLANNED TO CONCENTRATE ON ITS ACUTECARE HOSPITALS NATIONAL MEDICAL IS UNDER SERIOUS FINANCIAL STRAIN BECAUSE IT FACES ENORMOUS LEGAL LIABILITIES IN PENDING INSURANCECOMPANY MALPRACTICE AND SHAREHOLDER LAWSUITS ACCUSING IT OF BILLING FRAUD AND PATIENT ABUSE AT ITS PSYCHIATRIC HOSPITALS IT ALSO IS THE SUBJECT OF A JUSTICE DEPARTMENT INVESTIGATION OF SUSPECTED CRIMINAL MISCONDUCT BUT ANALYSTS TENDED TO ENDORSE THE COMPANY'S CONTENTION THAT THE DEAL WAS DRIVEN AS MUCH BY STRATEGIC CONSIDERATIONS AS BY THE NEED TO RAISE CASH 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 9401070029 940107 PHILIPPINE INFLATION GROWS MANILA PHILIPPINES THE PHILIPPINES' YEARONYEAR INFLATION RATE IN DECEMBER ROSE TO 84 FROM 8 IN NOVEMBER AND FROM 82 IN THE YEARAGO PERIOD THE NATIONAL STATISTICS OFFICE REPORTED FOR THE YEAR THE AVERAGE INFLATION RATE REACHED 76 NATIONWIDE WHICH IS ALMOST ON PAR WITH THE GOVERNMENT'S TARGET AVERAGE INFLATION RATE OF 75 FOR 1993 AND LOWER THAN THE AVERAGE OF 89 IN 1992 9401070028 940107 SOVEREIGN BANCORP'S CHAIRMAN STRIKES BACK BY FILING COUNTERSUIT WYOMISSING PA IN THE LATEST CHAPTER OF AN UNUSUAL CORPORATE DISPUTE THE CHAIRMAN OF SOVEREIGN BANCORP INC STRUCK BACK AT COMPANY OFFICERS WHO FILED A LAWSUIT AGAINST HIM TWO WEEKS AGO BY FILING A COUNTERSUIT SOVEREIGN CHAIRMAN FREDERICK J JAINDL CHARGES IN A LAWSUIT FILED IN PHILADELPHIA FEDERAL DISTRICT COURT THAT PRESIDENT AND CHIEF EXECUTIVE OFFICER JAY S SIDHU AND OTHERS ACTED ILLEGALLY BY PERSUADING THE BANK TO SUE HIM AND SEVERAL OTHER DIRECTORS ON DEC 20 THE BANK HOLDING COMPANY ANNOUNCED THAT IT HAD BROUGHT SUIT AGAINST MR JAINDL AND OTHERS FOR ALLEGEDLY FAILING TO DISCLOSE EFFORTS TO SELL THE COMPANY UNDER TERMS THAT WEREN'T IN THE BEST INTERESTS OF SHAREHOLDERS TERMING THE ACTION A JOKE MR JAINDL SAID AT THE THE TIME THAT THE OFFICERS SUED IN ORDER TO BLOCK SOVEREIGN FROM CONSIDERING OVERTURES MADE BY TWO OTHER LARGE BANKING CONCERNS MR JAINDL MAINTAINED THAT MR SIDHU HOLDS OPTIONS THAT WOULD BE MADE WORTHLESS IF THE COMPANY'S OWNERSHIP WERE TO CHANGE IN THE COUNTERSUIT MR JAINDL ASSERTS THAT MR SIDHU STANDS TO ENJOY SUBSTANTIAL MONETARY GAINS IF A SALE OF SOVEREIGN IS POSTPONED OR AVOIDED THE SUIT ASKS THE COURT TO ENJOIN THE BANK'S OFFICERS FROM CONTINUING THEIR LAWSUIT TO PAY UNSPECIFIED DAMAGES TO SOVEREIGN AND TO BE REQUIRED TO PAY THEIR OWN LEGAL FEES MR SIDHU DENIED THE CHARGES AGAINST HIM AND SAID THAT CONTRARY TO MR JAINDL'S ALLEGATIONS AS SOVEREIGN'S SECONDLARGEST INDIVIDUAL SHAREHOLDER HE STANDS TO GAIN A GREAT DEAL FROM THE SALE OF THE COMPANY THE WHOLE POINT ISN'T WHETHER THE BANK SHOULD BE SOLD HE SAID BUT IS IT IN THE INTEREST OF SHAREHOLDERS TO PURSUE ALL OFFERS OR JUST THOSE THAT MR JAINDL IS INTERESTED IN SEPARATELY MR JAINDL RENEWED HIS CALL TO THE BOARD TO HIRE AN INVESTMENT BANK TO EXAMINE THE POSSIBLE SALE OF THE COMPANY SOVEREIGN IS A SAVINGS BANK WITH 43 BILLION IN ASSETS AND 79 OFFICES IN EASTERN PENNSYLVANIA AND CENTRAL NEW JERSEY 9401070027 940107 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANK OF NEW YORK DELAWARE 250 MILLION OF FLOATINGRATE BANK NOTES DUE JAN 13 1996 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT WEEKLY AT 18 BASIS POINTS OVER THREEMONTH TREASURY BILLS THE FIRST COUPON WILL BE SET JAN 10 RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC BANK OF NEW YORK DELAWARE IS A UNIT OF BANK OF NEW YORK CO CENCALL COMMUNICATIONS CORP 250 MILLION PROCEEDS OF SENIOR REDEEMABLE DISCOUNT NOTES DUE JAN 15 2004 PRICED AT 60994 TO YIELD 10125 ACCORDING TO MCM CORPORATEWATCH THE BONDS PAY NO INTEREST FOR FIVE YEARS AND THEREAFTER HAVE A 10125 COUPON THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED CAA BY MOODY'S THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CIT GROUP HOLDINGS INC 250 MILLION OF FLOATINGRATE NOTES DUE JAN 15 1999 PRICED AT PAR ACCORDING TO BONDATA CORPORATE SERVICE THE COUPON ON THE NONCALLABLE NOTES WILL BE SET JAN 11 AND WILL PAY AND FLOAT QUARTERLY AT 0125 BASIS POINT OVER THREEMONTH LONDON INTERBANK OFFERED RATE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CIT IS 40 OWNED BY CHEMICAL BANKING CORP AND 60 OWNED BY DAIICHI KANGYO BANK LTD FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP MEDIUMTERM NOTES DUE JAN 19 1999 PRICED AT PAR TO YIELD 432 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 28 BASIS POINTS ABOVE TREASURYS THE COUPON RISES TO 584 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FORD MOTOR CREDIT CO 500 MILLION OF NOTES DUE JAN 15 1999 PRICED AS 5625S AT 99857 TO YIELD 5658 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO UNION PACIFIC CORP 879 MILLION OF EQUIPMENT TRUST CERTIFICATES DUE FEB 1 2004 PRICED INITIALLY AT PAR TO YIELD 612 ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES NONCALLABLE FOR SEVEN YEARS WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED DOUBLEA1 BY MOODY'S AND DOUBLEAPLUS BY S&P AND SOLD THROUGH A COMPETITIVE BID WON BY GOLDMAN SACHS & CO WACHOVIA BANKNORTH CAROLINA 100 MILLION OF FLOATINGRATE MEDIUMTERM BANK NOTES DUE JAN 15 1996 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE COUPON WILL PAY AND FLOAT QUARTERLY AT 625 BASIS POINTS UNDER THE THREEMONTH LIBOR THE FIRST COUPON WILL BE SET JAN 14 RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY S&P THE NONCALLABLE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO WACHOVIA IS A UNIT OF FIRST WACHOVIA CORP ADELPHIA COMMUNICATIONS CORP 88 MILLION CLASS A COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CALIFORNIA HEALTH FACILITIES FINANCING AUTHORITY 3338 MILLION OF BONDS PRICED BY A PAINEWEBBER INC GROUP THE 1306 MILLION OF 1994 SERIES A HEALTHFACILITY REFUNDING REVENUE BONDS ARE PRICED TO YIELD FROM 234 IN 1995 TO 542 IN 2019 THESE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P YIELDS FOR THE 2032 MILLION OF 1994 SERIES B HEALTHFACILITY REFUNDING REVENUE BONDS RANGE FROM 234 IN 1995 TO 547 IN 2021 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P AMERICAN EXPRESS BANK LTD US PARENT 200 MILLION OF SUBORDINATED FLOATINGRATE EURONOTES DUE FEBRUARY 2004 AT ISSUE AND REOFFER PRICE 9975 VIA LEHMAN BROTHERS INTERNATIONAL PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 10 BASIS POINTS MINIMUM COUPON 5 FEES 05 AMERICAN TELEPHONE & TELEGRAPH CO US 400 MILLION OF 55 EUROBONDS DUE FEB 1 1999 AT ISSUE PRICE 10117 VIA CS FIRST BOSTON LTD REOFFERED AT 99595 TO YIELD 56 A MARGIN OF 25 BASIS POINTS ABOVE FIVEYEAR US TREASURY FEES 1875 AUSTRIA SOVEREIGN 60 BILLION YEN OF 375 EUROBONDS DUE FEB 3 2009 AT ISSUE AND REOFFER PRICE 9921 VIA GOLDMAN SACHS INTERNATIONAL LTD AND IBJ INTERNATIONAL LTD BONDS YIELD 382 FEES 0375 BHF FINANCE NETHERLANDS BV GERMAN PARENT 200 MILLION MARKS OF 6 BONDS DUE FEB 10 2004 AT ISSUE PRICE PAR VIA BERLINER HANDELSUND FRANKFURTER BANK GUARANTOR BHF BANK FEES UNDISCLOSED CANADIAN WHEAT BOARD CANADIAN AGENCY 250 MILLION OF 475 EUROBONDS DUE FEB 3 1997 AT ISSUE PRICE 1011075 VIA UBS LTD REOFFERED AT 9992 TO YIELD 478 LAUNCHED OFF EUROMEDIUMTERM NOTE PROGRAM FEES 1375 DEUTSCHE BAUUND BODEN BANK AG GERMANY 100 MILLION MARKS OF REVERSECOUPON COLLARED FLOATINGRATE NOTES DUE FEB 4 2004 AT ISSUE PRICE 1013 VIA DEUTSCHE GENOSSENSCHAFTSBANK COUPON 56 ANNUAL FOR FIRST THREE YEARS THEREAFTER SEMIANNUAL COUPON FLAT AT SIXMONTH MARK LIBOR MINIMUM COUPON 5 MAXIMUM 725 FEES 17 LESS 015 FOR LEAD MANAGER DSL FINANCE BV AMSTERDAM GERMAN PARENT ONE BILLION MARKS OF 5 EUROBONDS DUE FEB 9 1999 AT ISSUE PRICE 10115 VIA DRESDNER BANK AG REOFFERED AT 994 TO YIELD 514 A MARGIN OF 12 BASIS POINTS ABOVE COMPARABLE GERMAN GOVERNMENT NOTE GUARANTOR DEUTSCHE SIEDLUNGSUND LANDESRENTENBANK FEES TWO EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL 50 MILLION OF 6875 EUROBONDS DUE JAN 25 2019 AT ISSUE AND REOFFER PRICE 99718 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 69 A SPREAD OF 25 BASIS POINTS ABOVE 875 UK GILT OF 2017 FEES UNDISCLOSED FORD CREDIT EUROPE PLC US PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE FEBRUARY 1999 AT ISSUE AND REOFFER PRICE 9985 VIA BARING BROTHERS & CO PAYABLE QUARTERLY AT THREEMONTH POUND LIBOR PLUS 025 BONDS CALLABLE AT PAR AFTER THREE YEARS LAUNCHED OFF EURO MEDIUMTERM NOTE PROGRAM FEES 0225 STATE BANK OF NEW SOUTH WALES AUSTRALIA 250 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 101375 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 725 AFTER FEES OF 2125 A MARGIN OF 23 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND GUARANTOR GOVERNMENT OF NEW SOUTH WALES 9401070026 940107 CORRECTIONS & AMPLIFICATIONS TIBOR NAGY JR OF THE TUCSON ARIZ LAW FIRM SNELL & WILMER REPRESENTED MCDONNELL DOUGLAS HELICOPTER CO A UNIT OF MCDONNELL DOUGLAS CORP IN A WRONGFULTERMINATION SUIT THAT WAS DESCRIBED IN AN ARTICLE LAST FRIDAY THE ARTICLE INCORRECTLY REPORTED THAT MR NAGY REPRESENTED THE PLAINTIFF IN THE CASE 9401070025 940107 AMERICA WEST STOCK POSTED STRONG GAINS IN '93 AS FIRM WEIGHED TAKEOVER OFFERS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL THE DISCLOSURE LAST MONTH THAT AMERICA WEST AIRLINES HAS ONE FIRM BUYOUT OFFER AND AS MANY AS FIVE MORE IN THE WINGS HAS SENT THE STOCK OF THE PHOENIXBASED CARRIER FLYING IN RECENT WEEKS THE STOCK WHICH CLOSED AT 153 A SHARE YESTERDAY IN NASDAQ STOCK MARKET TRADING IS BARELY AIRBORNE IN COMPARISON TO RIVALS BUT THE SURGE FROM 19 CENTS A SHARE IN DECEMBER 1992 TO 143 LAST MONTH MADE AMERICA WEST THE BESTPERFORMING AIRLINE STOCK IN 1993 WITH ITS SHARES RISING MORE THAN 600 IN VALUE WE HAVE INDIVIDUALS SEEING A VERY PROFITABLE COMPANY AND A LOWPRICED EQUITY AND SAYING AHA HERE'S A WAY TO MAKE SOME MONEY' SAYS SAM BUTTRICK AN AIRLINE ANALYST WITH KIDDER PEABODY INC THEY'RE OVERLOOKING THE SOMEWHAT DELICATE FACT THAT AMERICA WEST IS OPERATING IN CHAPTER 11 AND THE DISPOSITION OF ITS EQUITY IS UNCERTAIN AT BEST AMERICA WEST HAS BEEN OPERATING UNDER BANKRUPTCYCOURT PROTECTION SINCE 1991 INDEED MUCH OF THE STOCK'S RECENT MOVEMENT APPEARS TO BE THE RESULT OF A SHORT SQUEEZE AMONG INVESTORS BETTING THE AIRLINE'S WARNINGS ARE TRUE THAT IT WILL WIPE OUT COMMON AND PREFERRED SHARES ONCE IT EMERGES FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION THE NUMBER OF SHARES HELD BY SHORTSELLERS THOSE WHO SELL BORROWED STOCK HOPING TO MAKE A PROFIT WHEN THE PRICE DROPS NEARLY DOUBLED SINCE MIDOCTOBER RISING TO 71 OF THE AIRLINE'S 253 MILLION SHARES OUTSTANDING AT DEC 15 FROM 37 ON OCT 15 BENJAMIN WAISBRAN AN ATTORNEY REPRESENTING AMERICA WEST EQUITY HOLDERS SAYS REPORTS THAT THE COMPANY MAY WIPE OUT EQUITY ARE PREMATURE MR WAISBRAN A PARTNER IN THE CHICAGO LAW FIRM LORD BISSEL & BROOK SAYS WE'RE TAKING THE POSITION IN THIS CASE THAT THIS COMPANY HAS VALUE SUFFICIENT TO PROVIDE RECOVERY FOR SHAREHOLDERS THE EXTENT OF THAT RECOVERY WE DO NOT KNOW HE MAINTAINS THAT THE COMPANY BY REISSUING WARNINGS ABOUT THE EQUITY IS PLAYING INTO THE HANDS OF SHORTSELLERS SPECULATING ON THE STOCK AMERICA WEST CURRENTLY IS WEIGHING A 250 MILLION BID FOR 80 OF THE COMPANY FROM NEW YORK INVESTOR MICHAEL STEINHARDT THE COMPANY SAYS IT HAS SIGNED NONDISCLOSURE AGREEMENTS WITH FIVE OTHER COMPANIES AND THE DEADLINE FOR BIDS IS FEB 10 IN THE MEANTIME AMERICA WEST HASN'T CHANGED ITS POSITION ON THE STOCK WE'VE BEEN TELLING PEOPLE IT'S RISKY TO HOLD THE STOCK A SPOKESMAN SAID 9401070024 940107 MEN'S WEARHOUSE SALES RISE FREMONT CALIF MEN'S WEARHOUSE SAID DECEMBER SALES INCREASED 42 TO 405 MILLION FROM 285 MILLION A YEAR EARLIER THE MEN'S RETAILER SAID SALES AT STORES OPEN AT LEAST A YEAR GREW 18 9401070023 940107 US JUDGE ORDERS KOREAN FIRM TO STOP MAKING DIAMONDS IN GE THEFT CASE BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN AN UNUSUALLY TOUGH INJUNCTION A FEDERAL JUDGE ORDERED THAT A SOUTH KOREAN COMPANY BE BANNED FROM MAKING HIGHGRADE INDUSTRIAL DIAMONDS BECAUSE THE TECHNOLOGY WAS STOLEN FROM GENERAL ELECTRIC CO IN BOSTON US DISTRICT COURT JUDGE NATHANIEL GORTON RULED THAT ILJIN CORP OF SEOUL IS FORBIDDEN TO PRODUCE THE INDUSTRIAL DIAMONDS FOR A PERIOD OF SEVEN YEARS IN MOST CASES WHERE TECHNOLOGY IS STOLEN US JUDGES ORDER ONLY THAT THE OFFENDER NOT USE THE TECHNOLOGY ONLY RARELY DO THEY IMPOSE A PRODUCTION BAN JUDGE GORTON ALSO ORDERED THAT ILJIN EITHER DESTROY OR RETURN TO GENERAL ELECTRIC THE TOOLING BASED ON GE'S TRADE SECRETS IN SEOUL ILJIN HAS 20 HUGE PRESSES MAKING INDUSTRIAL DIAMONDS AND THE ORDER WOULD MEAN THAT THE COMPANY WOULD HAVE TO REMOVE CRITICAL TOOLING FROM THOSE PRESSES THE RULING WOULD RESHAPE THE WORLD'S INDUSTRIAL DIAMOND INDUSTRY IN ADDITION TO ILJIN AND GE THERE ARE ONLY THREE OTHER MAJOR MAKERS OF HIGH GRADE SYNTHETIC DIAMONDS INCLUDING A GERMAN COMPANY A JAPANESE COMPANY AND THE BIGGEST PRODUCER A UNIT OF DE BEERS CONSOLIDATED MINES LTD REMOVING ILJIN WOULD ELIMINATE ONE OF THE FIVE MAJOR PRODUCERS OF THE DIAMONDS WHICH ARE USED IN INDUSTRY TO CUT VERY HARD MATERIALS THE SIZE OF THE WORLDWIDE INDUSTRIAL DIAMOND MARKET ISN'T KNOWN BECAUSE THE COMPANIES DON'T BREAK OUT THEIR SALES FIGURES IT IS HOWEVER CONSIDERED HIGHLY PROFITABLE WITH GE MAKING A 70 MILLION PROFIT IN 1989 ACCORDING TO A COURT DOCUMENT IN A DIFFERENT CASE ANOTHER QUESTION IS WHETHER THE KOREAN COMPANY WILL OBEY THE US COURT ORDER ILJIN HAS SOME ASSETS IN THIS COUNTRY WHICH COULD BE FROZEN IF IT DISOBEYS BUT IT ISN'T KNOWN HOW SUBSTANTIAL THE ASSETS ARE ILJIN'S ATTORNEY MICHAEL KEATING OF FOLEY HOAG & ELIOT IN BOSTON SAID THAT THE COMPANY WOULD BE APPEALING NOT ONLY THE INJUNCTION BUT ALSO THE EARLIER JURY VERDICT THAT ILJIN HAD MISAPPROPRIATED GE'S SECRETS MR KEATING SAID THAT THE INJUNCTION IS MORE BROAD THAN NECESSARY TO PROTECT GE'S INTERESTS ASKED WHETHER HIS CLIENT WOULD OBEY IT MR KEATING SAID THEY HAVE PARTICIPATED IN THE JUDICIAL PROCESS PLAYING BY US RULES AND I FULLY EXPECT THAT THEY WILL CONTINUE TO DO SO IN NEW YORK GE ATTORNEY SALEM KATSH OF WEIL GOTSHAL & MANGES REPLIED THAT THE JUDGE ENTERED THE ONLY KIND OF RELIEF THAT WOULD BE EFFECTIVE THE ILJIN CASE STEMS FROM THE DEPARTURE OF A SCIENTIST CHIENMIN SUNG FROM GE'S INDUSTRIAL DIAMOND UNIT IN 1984 WHEN MR SUNG TOOK ALONG ARMFULS OF GE CONFIDENTIAL DOCUMENTS IN 1988 MR SUNG AGREED TO SELL ILJIN TECHNOLOGY ON MAKING INDUSTRIAL DIAMONDS MR SUNG WAS SUBSEQUENTLY INDICTED AND CONVICTED OF TRANSPORTING STOLEN GE DOCUMENTS IN FEDERAL COURT IN BOSTON GE FILED ITS CIVIL SUIT AGAINST ILJIN CLAIMING THAT THE KOREAN COMPANY HAD KNOWINGLY PURCHASED STOLEN TECHNOLOGY IN HIS RULING JUDGE GORTON SAID THAT THE DIMENSIONS AND MATERIAL SPECIFICATIONS OF THE ILJIN EQUIPMENT ARE SUBSTANTIALLY SIMILAR AND IN SOME RESPECTS IDENTICAL TO GE'S EQUIPMENT JUDGE GORTON ADDED THAT HE WAS IMPOSING THE UNUSUAL PRODUCTION BAN BECAUSE THE TRADE SECRETS ARE INEXTRICABLY CONNECTED TO MANUFACTURING THE HIGHGRADE DIAMONDS IT TOOK GE AND OTHER PRODUCERS 20 YEARS TO DEVELOP THE TECHNOLOGY WHILE IT TOOK ILJIN ONLY TWO THE JUDGE NOTED ILJIN THE JUDGE SAID MADE A CALCULATED DECISION TO CIRCUMVENT THE EXPENSIVE AND DIFFICULT PROCESS OF DEVELOPING THEIR OWN HIGH GRADE DIAMOND TECHNOLOGY BY PURCHASING STOLEN GE TRADE SECRETS THE JUDGE MADE ONE EXCEPTION IN HIS ORDER ALLOWING ILJIN TO PRODUCE THE DIAMONDS IF IT LICENSES THE TECHNOLOGY FROM ANOTHER COMPANY BUT ONE INDUSTRY EXPERT SAID LICENSING COSTS MAY BE SO HIGH AS TO MAKE THIS OPTION IMPRACTICAL 9401070022 940107 REVIEW & OUTLOOK EDITORIAL MORE BILLETS THAN BODIES WITH THE ECONOMY GROWING AND STATE COFFERS FILLING WE CAN EXPECT A PUSH FOR PUBLIC EMPLOYMENT GROWTH BUT THE FACT IS IN MOST JURISDICTIONS THE GOVERNMENT PAYROLL GROWTH NEVER STOPPED FOR THE RECESSION THIS CAN BE SEEN BY COMPARING STATE AND LOCAL EMPLOYMENT FIGURES FOR JUNE 1990 TO JUNE 1993 FROM THE CENTER FOR THE STUDY OF THE STATES WITH CENSUS DATA FROM APRIL 1990 AND JULY 1993 THIS ALLOWS FOR POPULATION CHANGES WHICH OUGHT TO BE THE PRIMARY BASIS FOR ADJUSTMENTS IN THE SIZE OF THE PUBLIC SECTOR WHAT YOU SEE ARE SEVERAL CASES OF UNJUSTIFIED GOVERNMENT GROWTH MANY OF THEM IN THE SOUTH THE MOST FLAGRANT WAS KENTUCKY PUBLIC PAYROLL UP 121 POPULATION UP 28 THEN THERE'S ALABAMA 96 VS 36 AND MISSISSIPPI 82 VS 27 LESSER BUT SIZABLE DISPARITIES WERE SEEN IN ARKANSAS LOUISIANA SOUTH CAROLINA AND WEST VIRGINIA THE CONTRARY EXAMPLE WAS GEORGIA WHICH RESTRAINED TAXPAID EMPLOYEE GROWTH TO 1 WHILE THE STATE GREW BY 68 ELSEWHERE SOME BIG STATES WITH BUDGET TROUBLES MANAGED TO TIGHTEN THEIR BELTS MASSACHUSETTS WITH A STABLE POPULATION CUT ITS PUBLIC PAYROLL 64 NEW YORK LOPPED OFF 28 WHILE THE RESIDENT COUNT FOR THE STATE GREW A MEAGER 12 MARYLAND SLIGHTLY CUT ITS STATE AND LOCAL WORK FORCE EVEN AS IT ADDED 38 TO THE POPULATION AND CALIFORNIA'S POPULATION GREW 49 BUT ADDED ONLY 19 TO THE PUBLIC PAYROLL NEW ENGLAND WAS GENERALLY DISCIPLINED EXCEPT FOR MAINE WHERE THE PUBLIC WORK FORCE GREW AT THREE TIMES THE CENSUS COUNT IN THE MIDWEST NEBRASKA'S OFFICIAL RANKS EXPANDED MORE THAN TWICE AS FAST AS THE NUMBER OF RESIDENTS PUBLIC PAYROLLS IN MINNESOTA SOUTH DAKOTA MISSOURI AND IOWA ALSO OUTPACED THEIR POPULATIONS FLORIDA KEPT ITS RATIO NEARLY EVEN BUT THE RECORD WASN'T AS GOOD IN TEXAS AN 114 INCREASE IN THE GOVERNMENT SECTOR VS A 61 POPULATION GAIN NEXTDOOR OKLAHOMA HAD THE SAME PROBLEM UP 74 IN PAYROLL AND JUST 27 IN PEOPLE OTHER GROWTH STATES THAT RAN AHEAD OF THEMSELVES IN PUBLIC HIRING WERE UTAH 122 VS 8 POPULATION WASHINGTON 113 VS 8 NEVADA 238 VS 156 AND HAWAII 120 VS 58 WHEN THE POLITICIANS COME CALLING FOR MORE MONEY THE FIRST THING THAT VOTERS AND THEIR WATCHDOGS IN THE PRESS SHOULD DO IS TAKE A LOOK AT THIS KIND OF COMPARISON AND ASK THE OBVIOUS QUESTIONS 9401070021 940107 TJX COS POSTS GAINS FRAMINGHAM MASS TJX COS SAID SALES FOR THE FIVE WEEKS ENDED SATURDAY WERE 508 MILLION UP 13 FROM A YEAR AGO SALES AT STORES OPEN AT LEAST A YEAR ROSE 3 FOR THE 48 WEEKS ENDED SATURDAY SALES REACHED 345 BILLION UP 13 FROM 306 BILLION 9401070020 940107 CALIFORNIA INDEPENDENT CRUDEOIL FIRMS ARE CLOSING WELLS AS LOW PRICES PERSIST BY JULIE TRIEDMAN SPECIAL TO THE WALL STREET JOURNAL MANY INDEPENDENT OIL PRODUCERS IN CALIFORNIA ARE CLOSING MARGINALLY PRODUCTIVE WELLS AND SOME SMALLER OUTFITS SAY THEY MAY FACE BANKRUPTCY WITHIN MONTHS IF OIL PRICES STAY WHERE THEY ARE CALIFORNIA PRODUCERS HAVE LAID OFF PEOPLE BANKS ARE REVIEWING THEIR LOANS AND THEY HAVE SIMPLY SHUT DOWN THE PUMPS IN SOME CASES SAID JUDY LEON A SPOKESWOMAN FOR THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA IN WASHINGTON DC THE SLIDE IN CRUDE OIL PRICES SINCE OCTOBER HAS SHAKEN OILDRIVEN ECONOMIES WORLDWIDE CURRENTLY CALIFORNIA HEAVY CRUDES SELL FOR ABOUT 8 A BARREL ROUGHLY 6 BELOW THE US BENCHMARK WEST TEXAS INTERMEDIATE PRODUCERS SAY THAT NOT ONLY CALIFORNIA'S ECONOMIC HEALTH BUT LONGTERM PRODUCTION CAPACITY ITSELF COULD DETERIORATE RAPIDLY IF CURRENT PRICES CONTINUE THE INDEPENDENTS AT HIGHEST RISK CARRY HIGH DEBT AND DON'T OWN THE LAND ON WHICH THEY MINE INSTEAD THEY MUST SHELL OUT STEEP ROYALTY FEES TO LANDOWNERS FOR THE RIGHT TO PUMP THE OIL IN ADDITION MOST OF THE CRUDE PRODUCED IN CALIFORNIA IS HEAVY CRUDE THE DAYTODAY COST OF EXTRACTING HEAVY CRUDES EXCEEDS THAT OF THE LIGHTER GRADES FOUND IN MOST OTHER REGIONS OF THE US UNLIKE LIGHTERGRADE FREEFLOWING CRUDES CALIFORNIA HEAVY CRUDES MUST FIRST BE SOFTENED BY HEAT AND THEN FORCED OUT OF THE GROUND BY STEAM AFTER THREE MONTHS OF CELLAR PRICES MOST OF THE STATE'S ROUGHLY 535 ACTIVE INDEPENDENT PRODUCERS REALLY ONLY HAVE 60 DAYS OF CASH RESERVES LEFT SAID VIRGINIA LAZENBY SPOKESWOMAN FOR THE NATIONAL STRIPPER WELLS ASSOCIATION A GROUP REPRESENTING THE INTERESTS OF THE SMALLEST OIL PRODUCERS ONCE THEY'VE CLOSED THESE WELLS THEY'VE LOST THEIR ABILITY TO REVIVE THEM AND COSTS JUST SNOWBALL AL OVERSTREET 62YEAROLD OWNER AND FOUNDER OF CAPITAL PRODUCTION CO BAKERSFIELD CALIF SAID HE HAS CLOSED FIVE OF EIGHT WELLS DURING THE PAST SIX MONTHS HIS COMPANY FACES BANKRUPTCY IN THE NEXT FEW MONTHS IF PRICES REMAIN FLAT HE ADDED A SURVEY OF INDEPENDENTS CONDUCTED BY THE CONSERVATION COMMITTEE OF CALIFORNIA OIL AND GAS PRODUCERS A GROUP AIMED AT PRESERVING THE STATE'S OILPRODUCTION CAPACITY FOUND THAT COMPANIES WERE LOSING MONEY ON ALMOST ONETHIRD OF BARRELS PUMPED IN CALIFORNIA AT CURRENT PRICES ON A DAILY CASHFLOW BASIS IF STARTUP COSTS EQUIPMENT LIABILITY AND DEBT LOAD ARE FACTORED IN ALMOST TWOTHIRDS OF THE STATE'S BARRELS ARE UNPROFITABLE THE STUDY FOUND STOCKDALE OIL & GAS INC A 14PERSON OPERATION HAS CLOSED HALF OF ITS 200 WELLS DURING THE PAST SIX MONTHS ACCORDING TO PHILIP RYALL STOCKDALE'S PRESIDENT THE CLOSURES HAVE CUT OUTPUT ALMOST ONETHIRD SINCE AUGUST TO 700 BARRELS A DAY FROM 1000 AT THIS POINT A COMPANY OUR SIZE MAY NOT STAY IN BUSINESS FOR LONG IN CALIFORNIA SAID MR RYALL ADDING BELIEVE ME WE'RE NERVOUS MR RYALL SAID THE COMPANY CAN PROBABLY SURVIVE LONGER THAN SOME OTHERS OF SIMILAR SIZE BECAUSE STOCKDALE HAS OTHER HOLDINGS ACROSS THE US AND IN OTHER COUNTRIES WHERE LOCAL CRUDES FETCH HIGHER PRICES ANALYSTS AGREE THAT THE FACE OF CALIFORNIA'S OIL INDUSTRY IS CHANGING UNDER THE ONSLAUGHT OF PRICE WEAKNESS BUT SOME SEE THE CURRENT TREND AS AN EVOLUTION TOWARD A MORE STREAMLINED RESILIENT INDUSTRY WITH STRONGER COMPANIES GOBBLING UP WEAKER ONES THE LOWPRICE ENVIRONMENT IS GOING TO PRODUCE SOME WINNERS AS WELL AS SOME LOSERS SAID SANDY KIRKPATRICK PRESIDENT OF KIRKPATRICK ENERGY ASSOCIATES INC A DENVER INVESTMENT FIRM THAT ANALYZES WEST COAST OIL COMPANIES MUCHDEBATED FEDERAL EFFORTS TO HELP SMALL ENERGY COMPANIES ARE ALL FOCUSED ON THE LONG TERM HOWEVER THE STATE OF CALIFORNIA RESPONDING TO THE PLEAS OF PRODUCERS AND TO ITS OWN CONCERN TO PROTECT ITS EMPLOYMENT BASE IS LOOKING FOR WAYS TO EASE THE REGULATORY BURDEN FOR INSTANCE THE STATE HAS THE STIFFEST ENVIRONMENTAL AND AIRQUALITY REGULATIONS IN THE NATION AT THE END OF THIS MONTH THE STATE WILL RELEASE A REPORT EXAMINING THE COST OF ENVIRONMENTAL REGULATIONS TO CALIFORNIA'S OIL INDUSTRY AND WHAT MEASURES COULD BE TAKEN TO REDUCE COSTS IN THE FACE OF CURRENT PRICE DECLINES BUT FOR THE SMALLEST COMPANIES GOVERNMENT HELP MAY BE A CASE OF TOO LITTLE TOO LATE I'VE WORKED SINCE I WAS NINE YEARS OLD IN THIS BUSINESS FROM THE ALASKA NORTH SLOPE TO THE MIDDLE EAST SAID CAPITAL PRODUCTION'S MR OVERSTREET FROM HIS NEW HEADQUARTERS INSIDE HIS HOME NOW I'M LOOKING AT GOING BANKRUPT AT THE TWILIGHT OF MY LIFE 9401070019 940107 T2 MEDICAL DISCLOSES SEC INVESTIGATION RELATING TO TWO EARNINGS RESTATEMENTS BY EMORY THOMAS STAFF REPORTER OF THE WALL STREET JOURNAL ALPHARETTA GA T2 MEDICAL INC DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING EVENTS SURROUNDING THE COMPANY'S RESTATEMENT LAST SUMMER OF TWO QUARTERLY EARNINGS REPORTS THE COMPANY A PROVIDER OF INTRAVENOUS DRUG THERAPY IN THE HOME AND OTHER MEDICAL SERVICES SAID IT IS RESPONDING TO THE SEC'S REQUEST A SPOKESMAN DECLINED TO ELABORATE T2 MEDICAL ALSO DISCLOSED IN THE FILING THAT IT NO LONGER WOULD PURSUE THE CONTROVERSIAL PHYSICIANOWNERSHIP ARRANGEMENTS THAT HAVE DRIVEN ITS SUCCESS IN THE PAST THE SEC INQUIRY REPRESENTS THE LATEST REVERSAL IN T2 MEDICAL'S FORTUNES ONCE A DARLING OF WALL STREET THE COMPANY IN 1992 LEARNED THAT IT WAS ONE OF SEVERAL FIRMS UNDER INVESTIGATION BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR POSSIBLE MEDICARE FRAUD LAST SUMMER ACCOUNTING PROBLEMS AT THE COMPANY SPARKED A SLEW OF STILLUNRESOLVED SHAREHOLDER LAWSUITS IN AUGUST T2 MEDICAL PRONOUNCED TSQUARED RESTATED ITS EARNINGS SHARPLY DOWNWARD FOR THE FIRST AND SECOND QUARTERS OF ITS 1993 FISCAL YEAR AFTER THE COMPANY SAID IT DISCOVERED ACCOUNTING IRREGULARITIES AND ERRORS THE ORIGINAL DISCLOSURE OF THE ACCOUNTING PROBLEMS WAS ACCOMPANIED BY THE RESIGNATION OF T2 MEDICAL'S CHIEF EXECUTIVE OFFICER JOSEPH C ALLEGRA IN ADDITION THE COMPANY'S CHIEF FINANCIAL OFFICER DAVID HERSH TOOK ADMINISTRATIVE LEAVE WITH PAY AT THE TIME NEITHER THE COMPANY NOR THE EXECUTIVES WOULD SAY WHETHER THEIR DEPARTURES WERE LINKED TO THE ACCOUNTING DISCLOSURES THE EARNINGS RESTATEMENTS STEMMED LARGELY FROM INADEQUATE PROVISIONS FOR DOUBTFUL ACCOUNTS THE COMPANY SAID AT THE TIME DOUBTFUL ACCOUNTS ARE BILLINGS THAT NEITHER INSURERS NOR PATIENTS ARE LIKELY TO COVER MEANWHILE MOUNTING CRITICISM OF DOCTOROWNERSHIP ARRANGEMENTS BY THE PUBLIC AND IN WASHINGTON APPEARS TO HAVE FORCED T2 MEDICAL'S HAND IN RESTRUCTURING ITS CORPORATE DEALINGS THE COMPANY HISTORICALLY HAS GROWN BY MANAGING DOCTOROWNED HOMEHEALTH FIRMS AND LATER BUYING OUT THE DOCTORS' INTERESTS WITH COMPANY STOCK THROUGHOUT THESE RELATIONSHIPS T2 MEDICAL HAS BENEFITED FROM THE CONSTANT FLOW OF PATIENT REFERRALS BY THOSE DOCTORS INCREASINGLY THE PROPRIETY OF SUCH ARRANGEMENTS HAS BEEN CALLED INTO QUESTION BY MEDICAL ETHICISTS AND LEGISLATORS IN THE SEC FILING THE COMPANY SAID IT WOULD EITHER ACQUIRE OR REVISE THE MANAGEMENT AGREEMENTS WITH EXISTING FIRMS THAT ARE MANAGED BUT NOT YET OWNED BY T2 MEDICAL FURTHER THE COMPANY SAID IT IS BOLSTERING ITS SALES AND MARKETING STAFFS IN AN EFFORT TO ESTABLISH ACCOUNTS WITH HOSPITALS AND MANAGEDCARE ORGANIZATIONS T2 MEDICAL'S STRATEGIC SHIFT IS BEING APPLAUDED BY INDUSTRY ANALYSTS THOUGH THEY SUGGEST THAT THE COMPANY SHOULD HAVE MADE THE DECISION EARLIER THIS JUST MOVES THEM CLOSER TO WHERE THE INDUSTRY IS ALREADY SAID LORI PRICE SENIOR ANALYST WITH OPPENHEIMER & CO MS PRICE AND OTHERS ALSO WARN THAT THE COST OF CONVERTING TO A MORE TRADITIONAL SALES STRUCTURE WILL BE HIGH SO FAR ACCORDING TO THE FILING T2 MEDICAL HAS TAKEN SEVERAL MEASURES TO BOLSTER ITS SALES AND MARKETING CAPABILITIES THE COMPANY HAS RECRUITED A NUMBER OF HEALTHCARE EXECUTIVES REDEPLOYED MANY SENIOR EXECUTIVES AND BUILT A SMALL TRADITIONAL SALES STAFF THE DOCUMENT STATES IT'S NOT YET CLEAR HOW EFFECTIVE THESE MOVES WILL BE GIVEN THE TREMENDOUS COMPETITION IN HOME HEALTHCARE TODAY ACCORDING TO MICHAEL BOROCH A HEALTHCARE INDUSTRY CONSULTANT WITH LOUDEN & CO IN NASHVILLE TENN THEY'RE REALLY GOING TO BE CHALLENGED TO GO OUT AND SELL AGAINST EVERYBODY ELSE HE SAID PRICING CONTINUES TO COME DOWN AND THE MARKET ISN'T GROWING NEARLY AS IT HAD IN THE PAST 9401070018 940107 INTERNATIONAL TRW PLANS MEXICAN VENTURE TO START A CREDIT OPERATION IN GUADALAJARA BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY TRW INC WILL ANNOUNCE TODAY A MULTIMILLIONDOLLAR JOINT VENTURE WITH GRUPO CIS AN INVESTOR GROUP TO ESTABLISH A CONSUMER CREDIT REPORTING AGENCY IN MEXICO THE NEW COMPANY CALLED COMCRED IS EXPECTED TO START OPERATIONS IN GUADALAJARA IN 12 TO 18 MONTHS WITH 40 EMPLOYEES DV SKILLING GENERAL MANAGER OF TRW'S INFORMATION SYSTEMS AND SERVICES DECLINED TO DISCLOSE THE EXACT VALUE OF THE AGREEMENT SAYING ONLY THAT THE TRANSACTION WAS IN THE MULTITENS OF MILLIONS OF DOLLARS ACCESSIBLE COMPUTERIZED INFORMATION ON THE CREDIT HISTORY OF INDIVIDUALS HARDLY EXISTS IN MEXICO MANY BANKS STILL KEEP CREDIT RECORDS ON PAPER FURTHERMORE MEXICAN CONSUMERS DON'T HAVE LENGTHY CREDIT HISTORIES BECAUSE THEY PAID CASH FOR MOST OF THEIR PURCHASES DURING THE 1980S AND UNTIL AUGUST 1993 IT WAS ILLEGAL TO SHARE CREDIT INFORMATION OUTSIDE THE BANKING SYSTEM THIS IS A BRANDNEW BUSINESS PABLO GERBER S A PRINCIPAL IN GUADALAJARABASED GRUPO CIS SAID IN AN INTERVIEW IT IS DIFFICULT TO KNOW WHAT KIND OF INFORMATION IS OUT THERE BANKS HAVE AN URGENT NEED FOR CREDIT BUREAUS MEXICAN BANKS ISSUED THOUSANDS OF CREDIT CARDS IN THE PAST THREE YEARS BUT WERE LATER STUNG BY DEFAULTS MANY MEXICAN CONSUMERS INEXPERIENCED USERS OF CREDIT SIMPLY COULDN'T AFFORD THE HIGH FINANCING COSTS CREDIT CARDS WERE ONE OF THE KEY PROBLEM LOAN AREAS FOR BANKS IN 1992 AND IN 1993 SAID LAURA Z BERDEJA BANK ANALYST FOR BARING RESEARCH HERE AT LEAST 10 OF ALL CREDIT CARDS ISSUED WERE IN DEFAULT AT ONE POINT SHE SAID IN SOME INDIVIDUAL BANKS DEFAULT RATES WERE EVEN HIGHER THAN THAT BANKS HAVE SINCE WRITTEN DOWN MANY OF THESE LOANS SHARING CREDIT HISTORIES WITH A THIRD PARTY REPRESENTS A SIGNIFICANT CULTURAL CHANGE FOR MEXICAN BANKS WHICH TRADITIONALLY VIEWED SUCH DATA AS PROPRIETARY TRW SAYS IT NOW HAS INFORMAL COMMITMENTS FROM SEVERAL BANKS TO SHARE CREDIT INFORMATION TRW ALREADY FACES COMPETITION HERE HOWEVER LAST MONTH TRANS UNION CORP AND THE ASSOCIATION OF MEXICAN BANKS SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE TO PROVIDE ELECTRONIC CREDIT INFORMATION SERVICES BANKS AREN'T THE ONLY ISSUERS OF CREDIT CARDS HERE SEVERAL RETAIL CHAINS EXTEND CREDIT TO SHOPPERS AND A NUMBER OF NONBANK CREDIT CARD COMPANIES OPERATE IN MEXICO CURRENTLY BANKS CHARGE INTEREST RATES OF 30 TO 35 ON CREDIT CARDS HIGH RATES ARE ALSO CHARGED ON AUTO AND HOUSING LOANS BECAUSE MANY BANKS DON'T DISCRIMINATE BETWEEN GOOD CREDIT RISKS AND BAD ONES CREDIT BUREAUS COULD ACTUALLY HELP MEXICAN CONSUMERS BY DISTINGUISHING THOSE INDIVIDUALS WHO ARE GOOD CREDIT RISKS IN THE PAST THERE HAS BEEN NO CONCERN FOR BUILDING A CREDIT HISTORY AMONG CONSUMERS IN MEXICO MS BERDEJA SAID WITH THESE CREDIT BUREAUS YOU WILL BE ABLE TO DISTINGUISH YOURSELF AND MAYBE GET A LOWER INTEREST RATE 9401070017 940107 FOSTER'S BREWING REVAMPS IMAGE SEEKS TO REFRESH ITS SHARE IN CROWDED MARKET BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA THE BEER THAT PUT AUSTRALIA ON THE WORLD BREWING MAP IS TRYING TO RECAPTURE ITS HOME MARKET BACK IN THE 1980S THE GOGO ENTREPRENEURS WHO RAN THE COMPANY NOW KNOWN AS FOSTER'S BREWING GROUP LTD SPENT MOST OF THAT DECADE BENT ON FOSTERIZING THE WORLD WITH THEIR LAGER BEER FOSTER'S NOW THOSE MEN ARE GONE AND THE COMPANY IS CHANGING ITS ACT ENTER LES HIDDINS OTHERWISE KNOWN AS THE STAR OF BUSH TUCKER MAN AN AUSTRALIAN TELEVISION SERIES THAT SHOWS SURVIVAL TECHNIQUES IN THE WILD IN A TELEVISION CAMPAIGN LAUNCHED LAST MONTH MR HIDDINS FEATURES AGAINST A STRIKING OUTBACK SETTING WITH A CAN OF FOSTER'S IN HAND THE COLOR OF THE CAN REMAINS ITS TRADEMARK BLUE THOUGH A SHADE OR TWO DARKER AND THE REVAMPED THEME IS IT DOESN'T GET ANY BETTER THAN THIS THE AIM IS TO CELEBRATE THE BRAND'S LOCAL HERITAGE FOSTER'S SAYS IN ITS PROMOTIONAL MATERIAL THE COMPANY NEGLECTS TO MENTION THAT FOSTER'S WAS FOUNDED IN MELBOURNE 107 YEARS AGO BY TWO BROTHERS NAMED FOSTER WHO HAILED FROM NEW YORK THE OLD FOSTER'S WAS A PRODUCT OF THE '80S IN A MARKETING SENSE AND WENT THE WAY OF THE '80S BECAUSE IT HAD A LOT OF ASSOCIATION WITH BUSINESS IN GENERAL AND HIGHFLYING SAYS ROBIN HUXLEY MARKETING DIRECTOR AT CARLTON & UNITED BREWERIES LTD A FOSTER'S UNIT THAT IMAGE IN PART HELPED DRIVE THE LAGER'S MARKET SHARE IN AUSTRALIA DOWN TO BETWEEN 7 AND 10 FROM AROUND 16 IN THE MIDTOLATE 1980S HE SAYS THE FOSTER'S STABLE OF BRANDS HOWEVER CONTROLS AN ESTIMATED 53 OF THE COUNTRY'S BEER MARKET WHICH TOTALS ABOUT 55 BILLION AUSTRALIAN DOLLARS US378 BILLION A YEAR IMPORTED BEERS ACCOUNT FOR ONLY ABOUT 1 OF TOTAL BEER SALES IN AUSTRALIA THE RELAUNCHING OF THE FOSTER'S BRAND IS PART OF A TREND IN AUSTRALIA OVER THE PAST TWO YEARS NEW BEERS OR REMAKES HAVE HIT THE SHELVES AT THE RATE OF ABOUT ONE A MONTH THOUGH SOME ARE DIRECTED ONLY AT SMALL REGIONAL MARKETS IT'S THE CLASSIC COMBINATION OF A FALLING MARKET AND TWO MAJOR COMPETITORS SAYS MR HUXLEY WHO NOTES THAT EACH POINT OF MARKET SHARE IN AUSTRALIA IS WORTH A55 MILLION THE CURRENT BLITZ OF BRANDS ISN'T PECULIAR TO AUSTRALIA BREWERS IN OTHER MATURE MARKETS INCLUDING THE US AND CANADA PURSUE A SIMILAR STRATEGY HE AND OTHERS SAY IN AUSTRALIA FOSTER'S AND ITS MAJOR COMPETITOR LION NATHAN LTD WHOSE TOP BRANDS INCLUDE TOOHEYS AND SWAN ARE CONSTANTLY TRYING TO GET THE ATTENTION OF THE CONSUMER SAYS JUSTIN ARTER WHO TRACKS THE BREWING INDUSTRY FOR STOCKBROKERAGE FIRM JB WERE & SON HE THINKS IT IS A TREND THAT IS HERE TO STAY THE RISK MR ARTER ADDS IS THAT IT'S CANNIBALIZING A SHRINKING MARKET PER CAPITA BEER CONSUMPTION HAS PLUNGED 21 TO 956 LITERS IN THE LATEST YEAR FROM 1216 LITERS A DECADE AGO GOVERNMENT FIGURES SHOW MEANWHILE OVER THE PAST FIVE YEARS SOCALLED LIGHT BEERS WITH LOWER ALCOHOL CONTENT HAVE GROWN TO ABOUT 25 OF CONSUMPTION FROM JUST 10 REFLECTING AMONG OTHER FACTORS TOUGHER DRUNKDRIVING REGULATIONS IN AUSTRALIA THE BRIGHT SPOT LATELY ON THE DOMESTIC BEER FRONT INDUSTRY ANALYSTS SAY IS THE INTRODUCTION OF SOCALLED ICE BEERS AND COLDFILTERED PRODUCTS BOTH OF WHICH UNDERGO SPECIAL LOWTEMPERATURE BREWING PROCESSES FOR INSTANCE DESPITE ITS RELATIVELY HIGH ALCOHOL CONTENT FOSTER'S MAINTAINS THAT ITS NEW CARLTON COLD FILTERED BITTER LAUNCHED LAST JUNE ALREADY HAS CAPTURED 45 OF THE NATIONAL MARKET FOR PACKAGED BEER SOME ANALYSTS ATTRIBUTE THE BREW'S SUCCESS TO A CLEAR BOTTLE THAT IS NOVEL FOR AUSTRALIA AND A TASTE THAT IS SWEETER THAN MOST BITTERS AND APPEALS TO THE 18 TO 25YEAROLD SET 9401070016 940107 MARKETING BY YUMIKO ONO AS JAPAN HUNKERS DOWN IN THE ECONOMIC DOLDRUMS FATHERS ARE MOVING INTO THE SPOTLIGHT ON THE SCREEN FATHERS ALWAYS HAVE BEEN REPRESENTED IN TELEVISION ADS BUT THEY TENDED TO PLAY A MINOR ROLE JUST AS JAPANESE FATHERS IN REAL LIFE BUSY AT WORK AND NEVER AT HOME BUT NOW THAT COMPANIES ARE REDUCING OVERTIME BUSINESSMEN ARE COMING HOME MANY HOURS EARLIER AND MORE COMMERCIALS ARE SHOWING FATHERS AS CENTRAL CHARACTERS COOKING CURRY AND WASHING DISHES NAKANO VINEGAR CO WHICH SELLS DRIED FISH FLAKES FOR RICE RECENTLY AIRED AN AD SHOWING A FATHER MOTHER AND CHILD MAKING RICE BALLS IN A PARK A BIG CHANGE FROM LAST YEAR'S AD OF A POPULAR TEENAGE CELEBRITY PLAYING VOLLEYBALL EVEN ROCK STARS ARE PUSHING A FATHERLY IMAGE FUJI PHOTO FILM CO JAPAN'S BIGGEST FILM MAKER RECENTLY SHOWED A POPULAR HEAVYMETAL SINGER HIS FACE PAINTED LIKE THE AMERICAN ROCK BAND KISS AND CLAD IN A BUSINESS SUIT RUNNING AFTER HIS DAUGHTER WITH HER LUNCHBOX AMONG THE 20 HIGHESTRATED ADS ARE SEVERAL COMMERCIALS PORTRAYING FATHER FIGURES SAYS TATSUO SEKINE PRESIDENT OF TOKYO KIKAKU CO A MARKETING RESEARCH COMPANY A FEW YEARS AGO HE SAYS THE TOP ADS WERE DOMINATED BY TEENAGE MODELS BUT THE TREND DOESN'T NECESSARILY MEAN JAPANESE MEN SUDDENLY ARE HELPING OUT WITH THE HOUSEWORK RATHER THE ADS ARE POPULAR BECAUSE FATHERS ARE A SYMBOL OF ENDURANCE SAYS TOKYO KIKAKU'S MR SEKINE AND AMID THE GLOOM OF THE ECONOMIC RECESSION HE SAYS PEOPLE WANT SOMEONE TO RELY ON IN JAPAN'S COMPETITIVE SOFT DRINK MARKET COCACOLA CO'S AMBITIOUS ATTEMPT TO SELL TAB CLEAR HAS FIZZLED LAST MARCH COKE ENTHUSIASTICALLY LAUNCHED ITS LOWCALORIE CLEAR COLA IN JAPAN FLOODING TELEVISION WITH ADS THAT SAID THE BEVERAGE WAS A COMPLETELY NEW IDEA WITH A TASTE THAT'S NOT WHAT YOU THINK AT FIRST CURIOUS TEENAGERS THE MAIN CONSUMERS OF SOFT DRINKS RUSHED TO SAMPLE THE DRINK WHICH COSTS 110 YEN FOR AN EIGHTOUNCE CAN COKE'S JAPANESE UNIT SAYS IT SOLD FOUR MILLION CASES THE FIRST TWO MONTHS A STRONG PERFORMANCE FOR A NEW BRAND BUT FEW PEOPLE CAME BACK FOR MORE AN OFFICIAL FROM COKE'S CONSUMER INFORMATION DEPARTMENT IN JAPAN SAID THE COMPANY DECIDED TO HALT SALES LAST SUMMER IT'S NOT UNCOMMON FOR NEW DRINKS TO QUICKLY VANISH IN JAPAN'S SOFT DRINK MARKET WHICH POSTS ANNUAL SALES OF 42 TRILLION YEN AND INCLUDES MORE THAN 1000 BRANDS IN FACT MANY COMPANIES TEST PRODUCTS BY ROLLING THEM OUT STRAIGHT TO CONSUMERS RECENT ENTRIES INCLUDE SUCH EXOTIC ITEMS AS YOGURT DRINKS INCLUDING CHUNKS OF FERMENTED COCONUT AND PUMPKIN AU LAIT BUT IT'S RARE FOR A DRINK THAT'S MARKETED SO HEAVILY TO BE WITHDRAWN SO SOON ANALYSTS SAY JAPANESE CONSUMERS WEREN'T READY FOR A DRINK LIKE TAB CLEAR FOR ONE THING ORIGINAL TAB HAD LITTLE BRAND RECOGNITION IN A COUNTRY THAT DOESN'T HAVE AS MUCH OF A TASTE FOR COLA AS AMERICA MOREOVER THE NOVELTY OF A CLEAR COLA DIDN'T EXCITE JAPANESE CONSUMERS WHAT'S MORE DIET DRINKS HAVE JUST STARTED TO GAIN ATTENTION AND MANY CONSUMERS WERE PUZZLED BY TAB CLEAR'S ARTIFICIALLY SWEET AFTERTASTE A POPULAR LOWCALORIE DRINK IS CANNED GREEN TEA WHICH ISN'T SWEET AT ALL PEOPLE WANT DRINKS THAT SOUND HEALTHY SAYS A SPOKESMAN FOR THE JAPAN SOFT DRINKS ASSOCIATION WHICH TRACKS BEVERAGE SALES FOR TAB CLEAR HE SAYS THE SWEETNESS MAY HAVE LINGERED A BIT JAPANESE DRIVERS ARE SPENDING A BUNDLE TO STAY ON THE RIGHT ROAD AT A TIME WHEN CONSUMER ELECTRONICS SALES ARE PLUNGING AMID THE RECESSION COMPANIES ARE CASHING IN BY PUSHING COMPUTERIZED SATELLITENAVIGATION SYSTEMS THE DEVICES ATTACHED NEXT TO THE DRIVER'S SEAT SHOW A CAR'S EXACT LOCATION AND GUIDE THE DRIVER TO A DESTINATION WITH AN ARROW ON A TINY TELEVISION SCREEN FIVE MONTHS AFTER ENTERING THE MARKET SONY CORP SAYS IT HAS SOLD NEARLY 40000 OF ITS NVXF10 MODEL DESPITE ITS HEFTY 210000 YEN 1861 PRICE IT'S ONE AREA IN THIS GLOOMY MARKET WHERE THERE'S ACTION GOING ON SAYS A SONY SPOKESMAN A HANDFUL OF RIVAL PRODUCTS HAS SPURRED A PRICE WAR BOOSTING SALES IN THE YEAR ENDED MARCH 31 CARNAVIGATION SYSTEMS SALES IN JAPAN MORE THAN QUADRUPLED FROM A YEAR EARLIER TO 150000 UNITS OBSERVERS ESTIMATE VOLUME TO AT LEAST DOUBLE IN THE NEXT YEAR IT'S A BIT OF A HASSLE TO SCROLL THE DEVICE'S MAPS WITH A REMOTECONTROL OPERATOR WHILE DRIVING BUT THE NAVIGATOR SOLVES A DILEMMA IN JAPAN'S FREQUENT TRAFFIC JAMS WHETHER TO SHOOT OFF ON SOME BACKALLEY SHORTCUT THE MACHINE TELLS WHETHER AND HOW THE DRIVER CAN GET BACK ON TRACK THE CDROM SOFTWARE COVERS ONLY JAPANESE ROADS SONY SAYS IT DOESN'T PLAN TO EXPORT THE DEVICE TO THE US WHERE OLDSMOBILE JUST UNVEILED A SELFNAVIGATING CAR THE DEVICES DETERMINE THE DRIVER'S WHEREABOUTS THROUGH MARITIME GLOBAL POSITIONING SYSTEM NETWORK OF SATELLITES USUALLY USED TO NAVIGATE SHIPS IN ADDITION SANYO ELECTRIC CO'S MACHINE RECOGNIZES VOICE SIGNALS AND PIONEER CORP OFFERS SOFTWARE FOR COMPUTER GAMES AND ENGLISH LANGUAGE LESSONS EYEING THE RISE IN INTEREST IN JAPAN FOR NATURE MAGAZINES NIKKEI BUSINESS PUBLICATIONS INC A TOKYOBASED PUBLISHER SAYS IT'S STUDYING THE POSSIBILITY OF PUBLISHING A JAPANESE VERSION OF NATIONAL GEOGRAPHIC SOCIETY'S MONTHLY MAGAZINE AS EARLY AS NEXT YEAR HOPING TO GAIN FROM JAPAN'S MINERALWATER BOOM SUNTORY LTD ADVERTISES ITS DYNAMIC BRAND BEER NOT FOR ITS TASTE BUT FOR USING NATURAL WATER THAT'S PUMPED FROM A WELL INSIDE ITS BREWING PLANT SUNTORY WHICH LAUNCHED THE BREW IN MARCH AIMS TO SELL 63300 KILOLITERS IN THE FIRST YEAR 9401070015 940107 PETRON CORP PLANS OFFERING OF 20 STAKE IN NEXT FEW MONTHS MANILA PHILIPPINES GOVERNMENTOWNED PETRON CORP WHICH PLANS A PUBLIC OFFERING OF 20 OF ITS EQUITY IN THE NEXT FEW MONTHS ANNOUNCED ITS NET INCOME SURGED BY 84 TO AROUND 27 BILLION PESOS 1 MILLION LAST YEAR PETRON PRESIDENT MONICO JACOB ATTRIBUTED THE SHARP RISE ON AN INCREASE IN REVENUE TO BETWEEN 44 BILLION PESOS TO 45 BILLION PESOS FROM 407 BILLION IN 1992 TO INCREASED VOLUMES INCREASED MARGINS AND BETTER EFFICIENCY HE COULDN'T GIVE FURTHER DETAILS PETRON THE PHILIPPINES' LARGEST OIL REFINING AND MARKETING COMPANY ALSO INCREASED ITS MARKET SHARE TO 44 FROM 40 IN 1992 THE 1993 FIGURES ARE UNAUDITED LAST MONTH IN THE COUNTRY'S LARGEST PRIVATIZATION SAUDI ARABIAN OIL CO SUBMITTED THE HIGHEST BID OF 502 MILLION FOR A 40 STAKE IN PETRON DETAILS OF THE SALE HAVE YET TO BE WORKED OUT BUT AT LEAST ONE OBSTACLE HAS BEEN OVERCOME MALAYSIA'S WESTMONT HOLDINGS SDN BHD WHICH WAS DISQUALIFIED FROM BIDDING FOR PETRON ON TECHNICAL GROUNDS HAS WITHDRAWN ITS PROTEST OVER THE CONDUCT OF THE EXERCISE WESTMONT GAVE NO REASON FOR ITS CHANGE OF HEART PETRON THE WHOLLY OWNED SUBSIDIARY OF THE STATE PHILIPPINE NATIONAL OIL CO HOPES TO GARNER PERHAPS EVEN MORE THAN THE SAUDI ARAMCO DEAL FROM A SECONDARY PUBLIC OFFERING OF A BILLION ONEPESO PARVALUE SHARES REPRESENTING 20 OF THE COMPANY IN DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PETRON SAID IT EXPECTED THE ISSUE TO TOTAL BETWEEN 6 BILLION PESOS AND 16 BILLION PESOS EVEN AT THE MINIMUM AMOUNT THE OFFERING WOULD BE BY FAR THE COUNTRY'S LARGEST STOCK OFFERING EVER 9401070014 940107 QUARTERLY MUTUAL FUNDS REVIEW EMERGING MARKETS' BOOM MAKES A TOP MANAGER QUEASY BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE SCORCHINGHOT DOMAIN OF EMERGINGMARKET STOCK FUNDS ONE OF THE HOTTEST HANDS AROUND IS MORGAN STANLEY'S 32YEAROLD MADHAV DHAR THE SHARES OF MORGAN STANLEY EMERGING MARKETS A CLOSEDEND FUND MR DHAR MANAGES GAINED 925 IN 1993 IT'S BOOM TIME MR DHAR SAYS WITH AN EXPANSIVE SWEEP OF HIS ARMS INVESTORS ARE POURING MONEY INTO THE STOCK MARKETS OF FASTGROWING DEVELOPING NATIONS SUCH AS ARGENTINA MALAYSIA AND TURKEY PUSHING UP PRICES YET MR DHAR SAYS THE EUPHORIA IN EMERGING STOCK MARKETS SORT OF FRIGHTENS ME BECAUSE IT MAY PORTEND A SETBACK MR DHAR NEATLY FRAMES THE DILEMMA FACING INVESTORS WATCHING THE HOT RETURNS OF EMERGING MARKETS FUNDS SHOULD INVESTORS DIVE INTO THESE MARKETS WHILE THEY'RE MOVING UP OR WAIT TO INVEST AFTER A CORRECTION MR DHAR'S ADVICE PUT YOUR MONEY IN NOW IF YOU'RE INVESTING FOR THE LONG HAUL BUT REGULAR OPENEND FUNDS MIGHT MAKE MORE SENSE THAN PUBLICLY TRADED CLOSEDEND FUNDS SELLING AT HIGH PRICES AND IF YOU'RE INVESTING FOR THE SHORTTERM OR YOU CAN'T STAND TO SUFFER ANY LOSS STAY AWAY THERE MAY BE A ROUGH RIDE IN THE YEAR AHEAD MR DHAR SAYS I FEEL A LITTLE QUEASY AT INVESTORS' NEWFOUND ENTHUSIASM FOR EMERGING MARKETS HE SAYS GIVEN THE FROTHY PSYCHOLOGY OF THESE MARKETS HE SAYS A SCARE TO INVESTORS COULD TRIGGER A ROUT IN THE STOCKS MOREOVER INVESTORS GOING THE ROUTE OF CLOSEDEND FUNDS MUST TODAY PAY HEFTY PREMIUMS MEANING THEY PAY MUCH MORE THAN 1 FOR EVERY DOLLAR'S WORTH OF STOCK HELD IN THE FUND BECAUSE THE SHARES OF CLOSEDEND FUNDS TRADE ON EXCHANGES THEY FLUCTUATE ABOVE AND BELOW THE VALUE OF THE SECURITIES HELD IN THE FUNDS' PORTFOLIOS SHARES IN MR DHAR'S FUND FOR INSTANCE TRADE AT A SIZABLE PREMIUM OF ABOUT 17 OVER THE FUND'S NET ASSETS IF INVESTOR PSYCHOLOGY TURNS BEARISH INVESTORS COULD BE WHIPSAWED AS THE SHARES PLUNGE FROM A PREMIUM TO A DISCOUNT TO THE UNDERLYING PORTFOLIO BUT FOR THE PATIENT INVESTOR MR DHAR SAYS THAT PUTTING PART OF A PORTFOLIO INTO THESE MARKETS COULD TURBOCHARGE RETURNS OVER THE NEXT FIVE OR 10 YEARS DESPITE THEIR SWIFT RUNUP LAST YEAR THE FUNDAMENTALS ARE FINE IN EMERGING MARKETS HE SAYS THE STOCKS HELD IN MORGAN STANLEY EMERGING MARKETS' 400 MILLION PORTFOLIO SELL FOR 17 TIMES PROJECTED 1994 EARNINGS ABOUT IN LINE WITH THE US MARKET BUT MR DHAR EXPECTS EARNINGS AT THE COMPANIES TO GROW 15 TO 18 IN DOLLAR TERMS THAT'S FAR FASTER THAN THE 6 TO 8 GROWTH EXPECTED IN US CORPORATE EARNINGS IN TIME MR DHAR SAYS SWIFTLY RISING EARNINGS SHOULD BOOST EMERGINGMARKET STOCKS FASTER THAN SHARES IN DEVELOPED MARKETS SUCH AS THE US MR DHAR SAYS HE HAS 80 OF HIS PERSONAL FINANCIAL ASSETS INVESTED IN EMERGING MARKETS A FAR HIGHER PROPORTION THAN HE WOULD PROPOSE FOR MOST PEOPLE THAT 80 ALLOCATION MAY BE TOO HIGH FOR THE NEXT MONTH OR YEAR IF A CORRECTION HITS HE SAYS BUT IT'S CERTAINLY NOT TOO HIGH FOR THE NEXT FIVE YEARS A LOT OF FUND WATCHERS AGREE THESE THINGS HAVE RUN PRETTY HARD THE LAST FEW MONTHS SAYS SUSAN PALUCH AN ANALYST AT MORNINGSTAR CLOSEDEND FUNDS A NEWSLETTER IN CHICAGO WHO KNOWS HOW LONG THEY CAN SUSTAIN THAT BUT AS LONGTERM PLAYS THEY HAVE A LOT OF POTENTIAL MR DHAR ALONG WITH MARKET GURU BARTON BIGGS HEADS A MORGAN STANLEY GROUP THAT MANAGES 45 BILLION IN EMERGINGMARKETS ASSETS BESIDES THE EMERGING MARKETS CLOSEDEND FUND MORGAN STANLEY RUNS A HOST OF SINGLECOUNTRY AND REGIONAL CLOSEDEND FUNDS AND MANAGES MONEY FOR INSTITUTIONAL INVESTORS AS WELL MORGAN STANLEY RUNS AN OPENEND FUND AIMED AT INSTITUTIONS WITH A HIGH MINIMUM INVESTMENT OF 500000 THAT FUND HAD A TOTAL RETURN IN 1993 OF 8581 INCLUDING PRICE GAINS AND REINVESTED DIVIDENDS MR DHAR'S FUNDS HAVE A TEAM OF MANAGERS AND ANALYSTS WHO PICK STOCKS MR DHAR OVERSEES THE TEAM AND DECIDES WITH MR BIGGS WHO ALSO HEADS UP ALL OF MORGAN STANLEY ASSET MANAGEMENT HOW MUCH SHOULD GO INTO EACH COUNTRY THE BIGGEST COUNTRIES FOR THE FUNDS CLOSEDEND AND OPENEND NOW ARE BRAZIL 14 INDIA 12 AND HONG KONG AND CHINA 12 MR DHAR WHO TALKED HIS WAY INTO A JOB AT MORGAN STANLEY DURING A HIRING FREEZE WEAVES A COLORFUL CASE FOR EMERGINGMARKETS' PROSPECTS SURPRISINGLY HE SAYS DEVELOPING NATIONS ARE BOOMING THANKS TO THE COLLAPSE OF THE SOVIET UNION PREVIOUSLY DEVELOPING COUNTRIES DID NOT DEVELOP' BECAUSE THEY WERE SEDUCED AWAY FROM CAPITALISM BY ANOTHER MORE NOBLE' IDEOLOGY HE SAYS THE SOVIET UNION OFFERED A MODEL FOR ECONOMIC DEVELOPMENT WITHOUT BIG MACS BUT NOW DEVELOPING NATIONS ARE EMBRACING MARKET ECONOMIES EVEN THOUGH COMPETITION HURTS VERY BADLY UNTIL A SYSTEM STABILIZES WHAT STOCKS DOES HE LIKE HOUSING DEVELOPMENT FINANCE CORP IS A MONOPOLY MORTGAGE FINANCE COMPANY IN INDIA WHILE THE STOCK PRICE IS EXPENSIVE AT 20 TIMES EARNINGS IT'S BENEFITING FROM THE GROWTH OF THE INDIAN MIDDLE CLASS AT A 10 ANNUAL RATE AND A CHANGE IN CUSTOMS LEADING YOUNG INDIANS TO MOVE OUT OF THEIR FAMILIES' HOMES ENTERPRISES QUILMES IN ARGENTINA IS AN EXTREMELY WELLMANAGED BEER COMPANY MR DHAR SAYS WHILE PHILIP MORRIS AND OTHER US COMPANIES ARE TAKING SHARE AWAY FROM FOREIGN TOBACCO COMPANIES BEER TASTES ARE QUITE LOCAL IN BRAZIL THE STOCK OF ELECTROBRAS THE ELECTRIC MONOPOLY IS CHEAP IT'S HAD A 200 MOVE BUT IT STILL SELLS FOR ONLY 30 OF BOOK VALUE HE'S ALSO INVESTED IN BRADESCO A BRAZILIAN COMMERCIAL BANK EVEN THOUGH NO CREDIT IS AVAILABLE IN BRAZIL CURRENTLY IF INFLATION COMES DOWN THERE WILL BE A BOOM IN CREDIT IN BRAZIL INDOCEMENT IN INDONESIA IS A BIG POSITION BECAUSE THE DEVELOPMENT OF THE COUNTRY WILL REQUIRE HEAVY INFRASTRUCTURE SPENDING BUT IT'S HARDER TO FIND AFFORDABLE INFRASTRUCTURE PLAYS AROUND THE WORLD THAN PREVIOUSLY MR DHAR SAYS BECAUSE THERE ARE SO MANY INVESTORS CHASING THEM MR DHAR LIKES PEC ISRAEL ECONOMIC CORP WHICH IS A QUASICLOSEDEND FUND THAT BUYS TROUBLED COMPANIES FIXES THEM UP AND TAKES THEM PUBLIC IT HAS ONE OF THE SMARTEST MANAGEMENTS WE'VE SEEN EASTERN EUROPE WE OWN A LOT OF RUSSIAN DEBT WHICH HAS BEEN FABULOUS MR DHAR SAYS AFRICA THE FUND HAS AMONG OTHER THINGS A STAKE IN A CLOSELY HELD CHICKENRANCHING FIRM IN ZIMBABWE CALLED TRANSZAMBEZE YOU CAN'T BUY STOCKS OFF THE COMPUTER SCREEN IN EMERGING MARKETS MR DHAR SAYS WE LIKE COMPANIES THAT ARE HARD TO ANALYZE MR DHAR GOT INTO MORGAN STANLEY DURING A HIRING FREEZE BY OFFERING TO WORK WITHOUT PAY FOR SIX MONTHS SAYS MR BIGGS HE REALLY JUST SORT OF TALKED HIS WAY FROM BUSINESS SCHOOL INTO GETTING A JOB MR BIGGS SAYS THE GUY SAID I REALLY WANT TO DO THIS YOU DON'T HAVE TO PAY ME' IT WAS CLEAR AFTER HE'D BEEN HERE FOR A WHILE THAT HE WAS A REAL DYNAMO MR DHAR'S INTEREST IN EMERGING MARKETS GOES BEYOND A PROFESSIONAL ONE HE WAS BORN IN DELHI INDIA TO A PRIVILEGED FAMILY HIS FATHER A PROFESSOR WAS AN ADVISER TO INDIAN LEADER INDIRA GANDHI MR DHAR STUDIED ASTROPHYSICS AT ST STEPHENS COLLEGE DELHI UNIVERSITY INDIA BUT DISAPPOINTED HIS FATHER AN ARDENT SOCIALIST BY GOING TO CARNEGIE MELLON IN PITTSBURGH TO GET AN MBA TEN YEARS AGO HE WAS CRUSHED THAT I WAS GOING TO MORGAN STANLEY MR DHAR SAYS I SOLD MY SOUL BUT WHILE HIS OWN BACKGROUND WAS AFFLUENT I GREW UP AROUND EXTREME POVERTY YOU NEVER FORGET THAT THAT'S WHY HE SAYS HE TAKES SUCH PLEASURE IN WATCHING THE BOOM IN DEVELOPING COUNTRIES YOU'RE SEEING POOR PEOPLE GET RICH IN FRONT OF YOU HE SAYS I CAN'T GET VERY EXCITED DECIDING WHETHER TO BUY GM OR CHRYSLER 9401070013 940107 MARKETING & MEDIA JUDGE THROWS OUT BULK OF MGM SUIT AGAINST KERKORIAN BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES A STATE COURT JUDGE HERE ISSUED A PRELIMINARY ORDER THROWING OUT THE BULK OF THE CLAIMS IN A LAWSUIT FILED IN 1992 BY METROGOLDWYNMAYER INC AGAINST THE STUDIO'S FORMER OWNER KIRK KERKORIAN AND OTHERS BUT A SIMILAR SUIT FILED BY MGM'S OWNER FRENCH BANK CREDIT LYONNAIS SA WASN'T DIRECTLY AFFECTED NEITHER WERE CLAIMS AGAINST THE LOS ANGELES ACCOUNTING FIRM HOULIHAN LOKEY HOWARD & ZUKIN WHICH ALSO HAD BEEN A DEFENDANT THE SUIT WHICH SOUGHT 750 MILLION IN DAMAGES HAD CHARGED THAT MR KERKORIAN HIS TRACINDA CORP AND TWO ASSOCIATES BREACHED FIDUCIARY DUTY BY NOT DISCLOSING THE STUDIO'S TRUE FINANCIAL PROBLEMS WHEN THEY SOLD IT TO ITALIAN FINANCIER GIANCARLO PARRETTI IN 1990 FOR 13 BILLION THE BANK FOLLOWED UP QUICKLY WITH ITS OWN LAWSUIT CHARGING FRAUD TRACINDA COUNTERSUED CREDIT LYONNAIS HAD LOANED MR PARRETTI MUCH OF THE MONEY FOR THE 1990 ACQUISITION HOULIHAN LOKEY ISSUED A SOLVENCY OPINION AT THE TIME OF THE SALE BUT MR PARRETTI ENCOUNTERED CASH FLOW PROBLEMS ALMOST IMMEDIATELY AND AFTER A YEAR THE BANK OUSTED HIM THEN FOUGHT HIM IN COURT FOR NEARLY ANOTHER YEAR TO GET THE OUSTER APPROVED THE BANK WOUND UP TAKING POSSESSION OF THE STUDIO IN A DEFAULT ITS EXPOSURE WELL OVER 1 BILLION TRACINDA'S ATTORNEY IN THE MGM MATTER SETH HUFSTEDLER SAID WE'RE OBVIOUSLY PLEASED WITH THE JUDGE'S RULING BUT WOULDN'T COMMENT FURTHER UNTIL THE ORDER WAS FINALIZED A CREDIT LYONNAIS SPOKESMAN CALLED THE ORDER BY LOS ANGELES SUPERIOR COURT JUDGE RICHARD C HUBBELL UNCLEAR AND ADDED WE ARE SEEKING CLARIFICATION FROM JUDGE HUBBELL OF HIS BRIEF ORDER BUT ONE THING THAT IS CLEAR IS THAT THE BANK'S CASE AGAINST THE TRACINDA DEFENDANTS SURVIVES IN FULL AND MGM'S CASE AGAINST HOULIHAN LOKEY SURVIVES THE BANK AND MGM WILL VIGOROUSLY PROSECUTE THESE CLAIMS JUDGE HUBBELL GAVE NO REASONS FOR HIS ORDER WHICH WAS A REVERSAL OF AN EARLIER RULING BY A RETIRED JUDGE ACTING AS A COURT REFEREE ONE ARGUMENT USED BY TRACINDA WAS THAT BECAUSE CREDIT LYONNAIS ACTUALLY ACQUIRED THE STUDIO ALMOST TWO YEARS AFTER IT SAYS IT WAS MISLED IT KNEW FULL WELL BY THAT TIME THE EXTENT OF THE PROBLEMS THE STUDIO ARGUED THAT THE BANK DIDN'T HAVE MUCH CHOICE IN ACQUIRING MGM BECAUSE OF ITS LOAN EXPOSURE AND THAT THE SALE WAS MORE OR LESS A FORECLOSURE PEOPLE CLOSE TO BOTH SIDES WEREN'T CERTAIN WHETHER THE BANK'S LAWSUIT WOULD BE AFFECTED BUT JUDGE HUBBELL IS PRESIDING OVER THAT LAWSUIT AS WELL 9401070012 940107 NOT TONIGHT DEER OR HOW TO LIMIT WHITETAIL POPULATION RESTRAINING HUNGERING HERDS STIRS HUMAN PASSION TALK OF BAMBI BIRTH CONTROL BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL IRONDEQUOIT NY IF IT WEREN'T FOR THE BATTLE OVER DEER CONTRACEPTIVES ARNOLD ECKERT AND SANDY BAKER MIGHT BE MORE CIVIL TO EACH OTHER DEER CONTRACEPTIVES WAIT IT GETS WEIRDER MR ECKERT CALLS MS BAKER AND HER SUPPORTERS LOONEY TUNES BECAUSE THEY WANT TO USE BIRTH CONTROL TO LIMIT THE BURGEONING DEER POPULATION HERE THESE DEER HUGGERS HE SAYS ARE A HATEFUL BUNCH WHO PLANTED A FAKE PIPE BOMB UNDER HIS CAR I'VE NEVER SEEN SUCH VINDICTIVE VICIOUS PEOPLE IN MY LIFE SPUTTERS MR ECKERT WHO HEADS AN EFFORT TO CULL THE NUMBER OF DEER BY LURING THEM TO ISOLATED SPOTS WITH FOOD AND SHOOTING THEM MS BAKER A MEMBER OF THE MONROE COUNTY ALLIANCE FOR WILDLIFE PROTECTION IS A PETITE WOMAN WHO SEEMS TO SHRINK BEHIND THE WHEEL OF HER GRAY CADILLAC SHE DENIES HAVING ANYTHING TO DO WITH THE PHONY BOMB INDEED SHE WONDERS IF MR ECKERT STAGED THE WHOLE THING TO DEFLECT ATTENTION FROM THE DEER SLAUGHTER I'M NO ANIMALRIGHTS FANATIC I'M NOT EVEN A VEGETARIAN SHE SAYS I JUST THINK WE SHOULD LOOK AT ALTERNATIVES BEFORE WE START KILLING THE DEER WARS HAVE DIVIDED THE STREETS AND CULDESACS OF THIS ROCHESTER SUBURB HOME TO 60000 PEOPLE AND A HOTLY DISPUTED NUMBER OF DEER THOSE WHO HATE THEM SAY THERE MUST BE 500 OR MORE DEER ROAMING AROUND PRODEER FORCES SAY THERE IS NO SCIENTIFIC BASIS TO ESTIMATE THE NUMBER BUT MAINTAIN THAT WHATEVER THE ANTIDEER FORCES CALCULATE IT'S INFLATED MANY SUBURBAN COMMUNITIES ARE STRUGGLING TO CONTEND WITH WHITETAILED DEER WHICH MUNCH ON SHRUBBERY AND GARDEN PLANTS LIKE GRAZERS AT A SALAD BAR WHILE THEIR SHARP HOOVES LACERATE THE LAWNS WORSE THE GRACEFUL ANIMALS HAVE FEW NATURAL PREDATORS IN THE SUBURBS BESIDES DODGE MINIVANS AND BUICK SKYLARKS AND AS THE NUMBER OF DEER IN POPULATED AREAS INCREASES SO DO RELATED ROAD ACCIDENTS HITTING A DEER OR GETTING HIT BY ONE CAN KILL THE ANIMAL AND MANGLE THE CAR SWERVING WILDLY TO AVOID COLLISION CAN BE JUST AS DANGEROUS ALSO NO ONE WANTS TO SEE WHITETAILED CARCASSES ALONG THE HIGHWAY ESPECIALLY IN THE SUMMER SUN THE SITUATION HAS TURNED PARTICULARLY NASTY IN IRONDEQUOIT WHERE MANY OF THE PRICIEST HOMES ARE BUILT ALONG THE FRINGES OF DURAND EASTMAN PARK 961 LUSH ACRES THAT INCLUDE AN 18HOLE GOLF COURSE AND MOST OF THE TOWN'S DEER THOMAS GRISWOLD AN 81YEAROLD RETIRED ENGINEER LIVES ON A WINDING LANE NEXT TO THE PARK AND POINTS TO SKELETAL REMAINS OF SHRUBS LEFT BY WHITETAILS WHO AMBLE OVER FOR A SNACK THIS IS NO WAY TO LIVE HE FUMES WHAT MOST GALLS DEER LOVERS IN IRONDEQUOIT IS OFFICIALS' REFUSAL TO CONSIDER SUCH HUMANE ALTERNATIVES TO KILLING AS BIRTH CONTROL BIZARRE AS IT SOUNDS RESEARCHERS SAY THEY ARE WITHIN A FEW YEARS OF DISTRIBUTING A CHEAP AND EFFECTIVE CONTRACEPTIVE VACCINE FOR DEER THAT COULD BE USED IN CERTAIN CONTROLLED SETTINGS SUCH AS IRONDEQUOIT'S PARK SUCH CONTRACEPTIVE INJECTIONS ALREADY HAVE BEEN SUCCESSFULLY TESTED ON WILD HORSES AND 27 SPECIES OF ZOO ANIMALS INCLUDING AFRICAN LIONS AND RIVER HIPPOS IRONDEQUOIT TURNED DOWN AN OFFER TO PARTICIPATE IN A TEST OF THESE BIRTHCONTROL INJECTIONS WHICH ARE ADMINISTERED BY DART GUNS INSTEAD THE TOWN AND COUNTY DECIDED LAST FALL TO LAUNCH A BAITANDSHOOT PROGRAM OVER A SERIES OF NIGHTS OFFDUTY POLICEMEN LURED ABOUT 80 DEER TO ISOLATED SPOTS WITH HEAPS OF CORN FLIPPED ON LIGHTS AND BLASTED AWAY HUNDREDS OF ROUNDS OF GUNSHOTS ECHOED THROUGH THIS TOWN'S NORMALLY QUIET LEAFY STREETS AND CAUSED AN UPROAR ANGRY RESIDENTS MARCHED IN FRONT OF TOWN HALL AND OPPONENTS OF THE SHOOTING STARTED TYING PURPLE RIBBONS TO LAMPPOSTS AND MAILBOXES SOME PARENTS COMPLAINED THE NOISE KEPT CHILDREN AWAKE WHILE DEER ADVOCATES TRIED TO SNEAK PAST POLICE BARRICADES TO DISRUPT THE PROGRAM ANOTHER 160 DEER ARE SLATED TO BE KILLED THIS WINTER ALTHOUGH OFFICIALS NOW SAY THEY HAVE BOUGHT SUPPRESSORS TO MUFFLE THE GUNSHOTS IT WAS DURING THIS CULLING PROGRAM THAT MR ECKERT WHO IS PRESIDENT OF THE MONROE COUNTY LEGISLATURE STARTED OUT ONE MORNING ON HIS DAILY WALK AND FOUND THE FAKE PIPE BOMB LYING IN HIS DRIVEWAY HIS CAR HAD BEEN VANDALIZED WITH SWASTIKAS SCRATCHED ON THE TRUNK AND THE WORDS DEER KILLER ETCHED ON A DOOR THESE ARE THE SAME FOLKS WHO CAN'T BEAR TO SEE AN ANIMAL DIE HE SAYS MR ECKERT ADDS THAT HE TALKED TO JAY KIRKPATRICK ONE OF THE WILDLIFECONTRACEPTIVE EXPERTS ABOUT THE VACCINE LAST YEAR BUT DECIDED IT WAS UNPROVEN IF YOU'RE GOING TO USE A HIGHPOWERED RIFLE TO DART DEER WHY NOT JUST PUT A BULLET IN THEIR HEADS HE ASKS MR KIRKPATRICK DIRECTOR OF CONSERVATION BIOLOGY FOR ZOOMONTANA A REGIONAL ZOO IN BILLINGS MONT CONCEDES THE VACCINE STILL HAS SOME DRAWBACKS CURRENTLY ANIMALS MUST BE DOSED TWICE IN ONE MONTH TO BE INFERTILE FOR A YEAR THE TECHNOLOGY IS DESIGNED FOR SMALL URBAN POPULATIONS HE SAYS WHERE ANIMALS ARE EASILY MONITORED AND LESS FRIGHTENED OF PEOPLE HE IS NOW WORKING ON A ONESHOT TREATMENT WHICH SHOULD BE READY IN A FEW YEARS ONCE WE HAVE THAT HE SAYS WE WILL BE READY TO DISTRIBUTE IT WIDELY DRIVING IRONDEQUOIT'S WINDING STREETS IT'S EASY TO SEE WHO IS ON WHICH SIDE OPPONENTS OF THE BAITANDSHOOT PROGRAM HAVE HUNG OUT PURPLE RIBBONS WHILE THOSE WHO HATE THE DEER TEND TO HAVE THE BESTKEPT YARDS OFTEN FENCED THAT GUY OVER THERE ACTUALLY USES A VACUUM CLEANER IN HIS YARD SAYS MURIEL ARNOLD WHO HAS TWO PURPLE RIBBONS DISPLAYED AND DEER CARVED ON HER MAILBOX MS ARNOLD SAYS ONCEFRIENDLY NEIGHBORS BEGAN SNUBBING HER WHEN THEY LEARNED SHE LIKES DEER ONE MAN SHOWED UP AT HER DOOR WITH A BAG OF DEER DROPPINGS IN HIS HAND DEMANDING SHE STOP TOSSING APPLES IN HER YARD FOR THE ANIMALS HE SHOOK THIS STUFF IN MY FACE AND SAID IT WAS MY FAULT IT WAS IN HIS LAWN SHE RECALLS SHE'S ONE OF THESE BAMBI LOVERS ALL RIGHT SAYS DONALD BURNESS THE NEIGHBOR HE ADMITS CARRYING OVER THE BAG OF DROPPINGS BUT SAYS HE WAS ONLY TRYING TO DRIVE HOME HIS POINT IT MUST HAVE WEIGHED 10 POUNDS HE SAYS MS BAKER WHO LIVES ON THE OTHER SIDE OF THE PARK SAYS SHE HAS GOTTEN PHONE CALLS FROM PEOPLE WHO MUTTERED SHE SHOULD BE SHOT ALONG WITH THE ANIMALS ANOTHER DEER FAN WAS CONFRONTED THREE TIMES BY AN IRATE ANTIDEER MOM WHO IS SO SPOOKED AT THE NUMBER OF DEER ON THE ROAD SHE THREATENED TO COME AFTER THE DEERLOVER'S SON AND DAUGHTER IF HER OWN CHILDREN EVER ARE HURT IN A DEERCAR COLLISION LARAMIE BROWN A SEVENTHGRADE SCIENCE TEACHER WHO HEADS THE IRONDEQUOIT DEER ACTION COMMITTEE THAT ADVOCATES THE CULLING PROGRAM SAYS IT'S NOT THE DEERBUT THE DEER LOVERS WHO IRRITATE HER MOST SHE SAYS SHE ONCE WAS INTENTIONALLY TRIPPED BY AN OPPONENT AT A PUBLIC HEARING AND A FAKE BOMB TURNED UP IN HER MAILBOX JUST DAYS AFTER MR ECKERT FOUND HIS DEER ARE OUR ABORTION ISSUE SHE SAYS IT BRINGS OUT THE EXTREMISTS 9401070011 940107 WHO'S NEWS CYTEC INDUSTRIES TAPS FRY TO HEAD COMPANY WEST PATERSON NJ CYTEC INDUSTRIES INC A RECENT SPINOFF OF AMERICAN CYANAMID CO ANNOUNCED SEVERAL KEY EXECUTIVE APPOINTMENTS THE CHEMICAL MANUFACTURER NAMED DARRYL D FRY 54 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER MR FRY WAS FORMERLY AN EXECUTIVE VICE PRESIDENT OF CYANAMID AND PRESIDENT OF THE COMPANY'S CHEMICAL GROUP IN A MOVE TO TRANSFORM ITSELF FURTHER INTO A MEDICAL AND AGRICULTURAL PRODUCTS COMPANY CYANAMID ANNOUNCED ITS INTENTIONS TO SPINOFF ITS CYTEC UNIT EARLY LAST YEAR IN ADDITION JAMES P CRONIN 40 WAS ALSO NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR CRONIN WAS PREVIOUSLY CONTROLLER AT CYANAMID'S CHEMICAL GROUP CYTEC ALSO NAMED TWO FORMER VICE PRESIDENTS OF CYANAMID'S CHEMICAL GROUP EXECUTIVE VICE PRESIDENTS STEPHEN M CRUM 42 AND CHARLES A RUIBAL 46 9401070010 940107 TECHNOLOGY ZEOS INTERNATIONAL SIGNS LETTER OF INTENT TO BUY COMPUADD MINNEAPOLIS ZEOS INTERNATIONAL LTD FURTHERING THE CONSOLIDATION IN THE PERSONALCOMPUTER INDUSTRY SAID IT SIGNED A LETTER OF INTENT TO BUY COMPUADD CORP A COMPETITOR IN THE MAILORDER COMPUTER BUSINESS ZEOS IN A STATEMENT DIDN'T DISCLOSE THE PURCHASE PRICE ALTHOUGH IT SAID IT PLANNED TO PAY FOR COMPUADD WITH A COMBINATION OF CASH AND STOCK RICHARD W KRAUSE COMPUADD'S PRESIDENT DECLINED TO DISCLOSE FURTHER DETAILS NOTING THAT THE DEAL HAS NOT YET BEEN COMPLETED HE SAID IT WAS TOO EARLY TO TELL WHETHER THE COMPUADD NAME WOULD SURVIVE OR WHETHER HE WOULD HAVE A ROLE IN THE COMBINED COMPANY IN NOVEMBER ZEOS DISCLOSED THAT IT HAD BEGUN VERY PRELIMINARY MERGER TALKS WITH COMPUADD WHICH EMERGED FROM BANKRUPTCYCOURT PROTECTION TWO MONTHS AGO CLOSELY HELD COMPUADD FILED FOR CHAPTER 11 PROTECTION AFTER STUMBLING IN ITS ATTEMPTS TO EXPAND INTO PC RETAILING THE COMPANY HAS SAID IT EXPECTS REVENUE THIS YEAR OF ABOUT 250 MILLION ZEOS HAD SALES OF 169 MILLION FOR THE FIRST NINE MONTHS OF 1993 AND A NET LOSS OF 9 MILLION OR 105 A SHARE IN THE YEAREARLIER NINE MONTHS ZEOS REPORTED A LOSS OF 21 MILLION OR 245 A SHARE ON REVENUE OF 1592 MILLION NEWS OF THE DEAL CAME AFTER THE CLOSE OF THE STOCK MARKET YESTERDAY ZEOS WAS QUOTED AT 3375 UP 125 CENTS IN NASDAQ STOCK MARKET TRADING ZEOS CHAIRMAN GREGORY E HERRICK SAID IN A STATEMENT THAT HE WAS ATTRACTED TO COMPUADD BY ITS WINNING GROUP OF EMPLOYEES AND A LOYAL CUSTOMER BASE THE COMPANY SAID THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT REGULATORY APPROVAL AND THE CONSENT OF COMPUADD'S LENDERS 9401070009 940107 WHO'S NEWS MGM NAMES COHEN TO POST SANTA MONICA CALIF METROGOLDWYNMAYER INC SAID IT NAMED RICHARD COHEN PRESIDENT OF THE STUDIO'S HOME VIDEO AND NEW MEDIA ELECTRONIC PUBLISHING UNIT MGM/UA HOME ENTERTAINMENT MR COHEN 43 YEARS OLD IS BEST KNOWN IN HOLLYWOOD FOR SERVING AS EXECUTIVE VICE PRESIDENT OF WALT DISNEY CO'S HOME VIDEO UNIT LATE IN 1992 HE DEPARTED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INTERNATIONAL CABLECASTING TECHNOLOGIES INC BASED IN LONDON MGM IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA 9401070008 940107 BLOCKBUSTER AND VIACOM DISCUSS MERGER MOVE COULD ALLOW PARTNERS TO OUTBID RIVAL QVC IN FIGHT FOR PARAMOUNT BY WALL STREET JOURNAL REPORTERS RANDALL SMITH JOHNNIE L ROBERTS AND LAURA LANDRO NEW YORK VIACOM INC AND BLOCKBUSTER ENTERTAINMENT CORP ARE NEGOTIATING A MERGER AIMED AT ENABLING VIACOM TO OUTBID RIVAL QVC NETWORK INC IN THE BATTLE FOR PARAMOUNT COMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION VIACOM AND BLOCKBUSTER WERE SCRAMBLING TO PUT THE FINISHING TOUCHES ON A DEAL VALUING BLOCKBUSTER AT ABOUT 7 BILLION THAT COULD BE ANNOUNCED TODAY AS AN INTERIM STEP TO THE MERGER PLAN THESE PEOPLE SAID BLOCKBUSTER MIGHT INCREASE AN EARLIER 600 MILLION INVESTMENT IN VIACOM BY AS MUCH AS 1 BILLION VIACOM COULD USE THE CASH TO SWEETEN ITS PARAMOUNT BID CURRENTLY VALUED AT 93 BILLION TONIGHT IS THE DEADLINE FOR VIACOM TO TOP QVC'S OFFER CURRENTLY VALUED AT 98 BILLION IF VIACOM DOESN'T MAKE A NEW BID BY THE END OF TODAY QVC CHAIRMAN BARRY DILLER COULD WIN THE FOURMONTH CONTEST PROVIDED THAT HOLDERS OF 51 OF PARAMOUNT SHARES TENDER THEIR STOCK TO QVC THE CABLETV HOMESHOPPING CHANNEL BUT A VIACOMBLOCKBUSTER MERGER ALONG WITH A HIGHER VIACOM BID COULD PROLONG THE CONTEST FOR WEEKS THE BOARDS OF VIACOM AND BLOCKBUSTER WERE MEETING LATE YESTERDAY TO DISCUSS THE MERGER PLAN BUT THE PEOPLE FAMILIAR WITH THE PLAN CAUTIONED THAT AN AGREEMENT WASN'T GUARANTEED AND THAT IMPORTANT POINTS REMAINED UNRESOLVED FOR EXAMPLE ONE PERSON SAID THAT THE MERGER AGREEMENT MIGHT BE CONTINGENT ON VIACOM'S WINNING THE BIDDING CONTEST ANOTHER REMOTE POSSIBILITY WAS THAT THE TWO COMPANIES WOULD FORM A JOINT VENTURE POOLING SOME OF THEIR ASSETS IF THEY COULDN'T REACH A MERGER ACCORD BUT THE BROAD OUTLINES OF A MERGER HAD BEEN WORKED OUT THE PEOPLE SAID IN THE MERGER BEING DISCUSSED VIACOM WHICH OWNS MTV NICKELODEON SHOWTIME AND OTHER CABLETV CHANNELS WOULD ISSUE STOCK TO ACQUIRE BLOCKBUSTER A FASTGROWING CHAIN OF VIDEO RENTAL STORES A VIACOMBLOCKBUSTER MERGER WOULD TAKE LONGER TO COMPLETE THAN THE PARAMOUNT BIDDING TIMETABLE ALLOWS BUT BLOCKBUSTER'S POSSIBLE 1 BILLION ADDITIONAL INVESTMENT WOULD ENABLE VIACOM TO MOVE MORE SWIFTLY TO IMPROVE ITS OFFER FOR PARAMOUNT IF THE TWO COMPANIES CAN'T REACH AGREEMENT IN TIME THEY MIGHT SIMPLY DISCLOSE TODAY THAT THEY ARE HOLDING MERGER TALKS AND APPEAL TO PARAMOUNT SHAREHOLDERS FOR MORE TIME TO MAKE A NEW BID WHICH COULD DEPRIVE QVC OF THE NEEDED 51 TRADERS SAID THAT BLOCKBUSTER AND VIACOM TOGETHER WOULD HAVE A STRONGER BALANCE SHEET AND MORE BORROWING POWER TO SWEETEN VIACOM'S OFFER THE COMBINATION WOULD ALSO EXPAND BLOCKBUSTER'S ROLE FROM SIMPLY AN INVESTOR IN VIACOM TO A MAJOR SHAREHOLDER AND PARTNER IN ANY ACQUISITION OF PARAMOUNT THE PEOPLE SAID A HIGHER OFFER FROM THE VIACOM CAMP COULD ALSO HEIGHTEN THE DRAMA IN THE BATTLE FOR PARAMOUNT BY FORCING QVC TO SWEETEN ITS OFFER FOR A THIRD TIME EXACT TERMS OF THE PROPOSED VIACOMBLOCKBUSTER MERGER COULDN'T BE LEARNED VIACOM CHAIRMAN SUMNER REDSTONE WHO HAS AN 84 VOTING STAKE AND 76 ECONOMIC STAKE IN VIACOM IS EXPECTED TO REMAIN IN CONTROL THOUGH HIS OVERALL STAKE WOULD LIKELY BE DIMINISHED BUT BLOCKBUSTER CHAIRMAN WAYNE HUIZENGA WHO CONTROLS A 92 STAKE IN THE FORT LAUDERDALE FLA COMPANY WOULD BECOME A POWER IN THE MERGED COMPANY AS WELL IT WASN'T CLEAR HOW THE MERGER WOULD ADDRESS ISSUES OF MANAGEMENT CONTROL AND SUCCESSION IF VIACOM SUCCEEDS IN MAKING A HIGHER BID IT WOULD FORCE QVC'S MR DILLER TO CONFRONT SIMILAR ISSUES OF HOW MUCH POWER HE WANTS TO GIVE UP TO OBTAIN INCREASED FINANCING FROM BELLSOUTH CORP THE REGIONAL TELEPHONE COMPANY THAT IS BACKING HIS BID IT COULD ALSO ADD AT LEAST ANOTHER TWO WEEKS TO THE CONTEST WHICH BEGAN WHEN VIACOM AND PARAMOUNT ANNOUNCED A FRIENDLY 82 BILLION ACQUISITION AGREEMENT ON SEPT 12 THAT'S BECAUSE EACH NEW BID MUST REMAIN OPEN FOR 10 ADDITIONAL BUSINESS DAYS A VIACOMBLOCKBUSTER MERGER WOULD BE THE LATEST IN A DIZZYING SUCCESSION OF ALLIANCES AMONG COMPANIES ACROSS THE MEDIA SPECTRUM ALL VYING FOR A STAKE IN PARAMOUNT THE ENTERTAINMENT AND PUBLISHING GIANT UNDER THE BIDDING RULES AGREED TO BY VIACOM AND QVC TWO WEEKS AGO IF 51 OF PARAMOUNT'S SHARES ARE TENDERED TO QVC TODAY UNDER ITS CURRENT BID OF 8170 A SHARE AND IF VIACOM DOESN'T RAISE ITS BID QVC WOULD WIN AND VIACOM WOULD HAVE TO BOW OUT SHAREHOLDERS WHO HADN'T TENDERED THEIR SHARES TO QVC WOULD THEN HAVE 10 DAYS TO DO SO BLOCKBUSTER AGREED IN SEPTEMBER TO INVEST 600 MILLION IN VIACOM TO BOLSTER ITS BID TO BUY PARAMOUNT WHILE NYNEX CORP INVESTED 12 BILLION IN VIACOM FACED WITH THE NEED TO COME UP WITH MORE CASH TO TOP QVC'S BID VIACOM WENT BACK TO BOTH INVESTORS LATE LAST MONTH REGIONAL TELEPHONE GIANT NYNEX FACED PRESSURES FROM CONSUMER GROUPS AND REGULATORS HOWEVER AND VIACOM'S TALKS WITH BLOCKBUSTER TOOK PRECEDENCE PEOPLE CLOSE TO THE SITUATION SAID TOP EXECUTIVES OF BLOCKBUSTER MET OVER SEVERAL DAYS THIS WEEK WITH VIACOM INITIALLY DISCUSSING A PLAN FOR BLOCKBUSTER TO INVEST MORE CASH TO BOOST VIACOM'S OFFER FOR PARAMOUNT PEOPLE FAMILIAR WITH THE SITUATION SAID THAT EARLY TALKS WITH VIACOM AND BLOCKBUSTER WERE FRAUGHT WITH DIFFICULTY OVER ISSUES OF VALUE AND CONTROL UNDER THE ORIGINAL AGREEMENT TO INVEST 600 MILLION IN VIACOM BLOCKBUSTER DIDN'T GET VOTING STOCK IN VIACOM BUT COLLECTED A BOARD SEAT AND PREFERRED STOCK WITH A 5 DIVIDEND THE STOCK IS CONVERTIBLE TO VIACOM NONVOTING CLASS B SHARES AT 70 A SHARE IN RECENT TALKS BLOCKBUSTER WAS SAID TO BE DEMANDING MORE FAVORABLE TERMS FROM VIACOM IN RETURN FOR A FURTHER CASH INVESTMENT THE DISCUSSION THEN TURNED TO A COMBINATION OF SOME OR ALL OF VIACOM'S AND BLOCKBUSTER'S BUSINESSES ONE PERSON FAMILIAR WITH BLOCKBUSTER SAID THAT BLOCKBUSTER'S MR HUIZENGA HAD PRESSED FOR A COMBINATION OUT OF GROWING CONCERN FOR THE FUTURE OF BLOCKBUSTER'S OWN BUSINESS BLOCKBUSTER THE NATION'S LARGEST VIDEO CHAIN FACES INCREASING COMPETITION FROM CABLETV PAYPERVIEW CHANNELS AND THE PROMISE OF MOVIES ON DEMAND FROM PHONE AND CABLETV COMPANIES FOR THAT REASON BLOCKBUSTER HAS ALREADY INVESTED IN SMALLER ENTERTAINMENT PRODUCTION CONCERNS SUCH AS SPELLING ENTERTAINMENT DURING THE DAY TRADERS HEARD RUMORS THAT VIACOM'S NEXT MOVE MIGHT BE BIGGER THAN YOU THINK BUT WITHOUT ANY SPECIFICS ONLY AFTER THE STOCK MARKET CLOSED AT 4 PM DID THE RUMORS ABOUT A POSSIBLE MERGER TAKE OFF THOUGH THE VIACOM CAMP HAS BEEN MUM ON ITS PLANS ALL WEEK TRADERS AND ENTERTAINMENT INDUSTRY EXECUTIVES SAY PEOPLE IN THE VIACOM CAMP HAVE BEEN BROADLY HINTING AT A DRAMATIC MOVE TO BE ANNOUNCED TODAY BLOCKBUSTER HAS ABOUT 2221 MILLION SHARES OUTSTANDING VALUED AT ABOUT 66 BILLION AT YESTERDAY'S CLOSING PRICE OF 29875 A SHARE ACCORDING TO THE VALUE LINE INVESTMENT SURVEY BLOCKBUSTER HAS TOTAL DEBT OF 4953 MILLION AND EXPECTED 1993 REVENUES OF ABOUT 21 BILLION IN 1992 IT REPORTED PROFITS OF 142 MILLION OR 76 CENTS A SHARE ON REVENUE OF 12 BILLION BLOCKBUSTER LATE LAST MONTH TRIPLED ITS CREDIT AGREEMENT WITH A GROUP OF BANKS TO 1 BILLION THE SHARE PRICE OF THE FASTGROWING COMPANY HAS RISEN ABOUT 30FOLD SINCE 1988 BASED ON THE RAPID EXPANSION OF ITS CORE BUSINESS OF VIDEO RENTAL STORES WHICH NOW NUMBER MORE THAN 3000 THE STOCK SHOWS LITTLE SIGN OF WEAKENING DESPITE THE THREATS TO ITS BUSINESS POSED BY NEW TECHNOLOGIES BLOCKBUSTER HAS A MUCH STRONGER BALANCE SHEET THAN VIACOM WHOSE STOCKMARKET VALUE IS 54 BILLION BUT WHICH HAS 25 BILLION IN DEBT NOT INCLUDING THE ADDITIONAL 37 BILLION IN DEBT IT WILL ASSUME TO FINANCE ITS CURRENT OFFER FOR PARAMOUNT 9401070007 940107 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED DEC 31 ACCOUNTED FOR 103 OR AN AVERAGE 207 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL SEVEN MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 28 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 302 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 551 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 396 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 53 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES AND GOLDMAN SACHS EXECUTED MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY BEAR STEARNS AND KIDDER PEABODY DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9401070006 940107 INTERNATIONAL NATO SEEKS TO EXTEND UMBRELLA WITHOUT FUELING RUSSIAN FEARS USBROKERED COMPROMISE FALLS SHORT OF COVERAGE EASTERN EUROPE WANTS BY PETER GUMBEL AND MARK M NELSON STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS AT A SUMMIT MEETING HERE NEXT WEEK THE NORTH ATLANTIC TREATY ORGANIZATION WILL PROVIDE ITS FIRST ANSWERS TO A STRATEGIC CONUNDRUM HOW TO ENSURE STABILITY IN EUROPE AT A TIME WHEN RUSSIA THE BIGGEST MILITARY POWER IN THE REGION IS BECOMING INCREASINGLY UNSTABLE THAT QUESTION ALREADY ONE OF THE MOST VEXING ISSUES OF THE POSTCOMMUNIST ERA HAS BEEN MADE MORE URGENT BY THE SUCCESS OF MILITANT NATIONALISTS IN RUSSIA'S RECENT PARLIAMENTARY ELECTIONS BUT NATO'S EXPECTED RESPONSE A USINITIATED PLAN KNOWN AS PARTNERSHIPS FOR PEACE IS UPSETTING EAST EUROPEAN NATIONS WHO FEEL LET DOWN BY THE WEST JUST AS THE THREAT FROM THEIR HUGE EASTERN NEIGHBOR SEEMS TO BE ON THE RISE THE INITIATIVE ALSO IS CREATING MISGIVINGS IN WESTERN EUROPE PARTICULARLY IN GERMANY AND FRANCE WHICH ARE NONETHELESS PUBLICLY SUPPORTING IT THE PLAN SAYS AN AIDE TO FRENCH PRESIDENT FRANCOIS MITTERRAND IS A HALFMEASURE IMPOSED BY THE CIRCUMSTANCES THAT DOESN'T COMPLETELY SATISFY ANYONE ONE MAIN CAUSE FOR COMPLAINT IS THAT THE PROPOSAL RISKS CREATING THE IMPRESSION THAT RUSSIA FROM A POSITION OF WEAKNESS NOW IS DICTATING NATO POLICY IT AMOUNTS TO A SUPREME TWIST OF IRONY FOR AN ALLIANCE FOUNDED FOUR DECADES AGO TO PREVENT RUSSIA FROM IMPOSING ITS WILL FROM A POSITION OF MILITARY STRENGTH THIS APPEARANCE IS OF PARTICULAR CONCERN IN EUROPE WHERE GOVERNMENTS ALREADY ARE FACING A TEST OF THEIR CREDIBILITY OVER THEIR LACK OF DECISIVE ACTION TO RESOLVE THE CONFLICT IN BOSNIA US OFFICIALS HOWEVER INSIST THAT THE PROPOSAL IS A REALISTIC INTERIM STEP THAT ULTIMATELY SHOULD SATISFY ALL SIDES THE INITIAL REACTION TO PARTNERSHIPS FOR PEACE MAY BE MIXED BEYOND THAT HOWEVER THE POPULARITY WILL JUMP TREMENDOUSLY AS COUNTRIES LEARN THAT IT WORKS FOR THEM ROBERT HUNTER THE US AMBASSADOR TO NATO SAID IN AN INTERVIEW THE INITIATIVE WHILE CONFIRMING WASHINGTON'S PREOCCUPATION WITH RUSSIA TRIES TO BRIDGE THE SEEMINGLY IRRECONCILABLE POSITIONS OF MOSCOW AND ITS EAST EUROPEAN NEIGHBORS IT WOULD OPEN THE WESTERN ALLIANCE TO MILITARY COOPERATION WITH THE EAST TO AVOID PROVOKING MOSCOW HOWEVER NATO WOULD NOT GRANT SPECIFIC SECURITY GUARANTEES OR EXTEND ITS MEMBERSHIP TO EASTERN NATIONS ANY TIME SOON THAT COMES AS A DISAPPOINTMENT TO EAST EUROPEAN NATIONS WHICH HAVE SEEN MEMBERSHIP IN NATO AS THEIR BEST HOPE FOR ENSURING MILITARY STABILITY FOLLOWING THE COLLAPSE OF SOVIET COMMUNISM UNTIL RECENTLY THE WEST DID LITTLE TO DISCOURAGE THEIR HOPES BUT RUSSIAN PRESIDENT BORIS YELTSIN HAS TAKEN AN INCREASINGLY TOUGH STANCE ON THE ISSUE WARNING THAT AN ENLARGEMENT OF NATO WOULD BE VIEWED AS A HOSTILE MOVE MOSCOW'S TOUGH TALK IS STIRRING CONCERN AND IRRITATION KARL LAMERS THE FOREIGNPOLICY SPOKESMAN OF GERMANY'S RULING CHRISTIAN DEMOCRATIC PARTY YESTERDAY ISSUED A STRONG REBUKE ABOUT THE THREATENING UNDERTONE OF RECENT RUSSIAN STATEMENTS WHICH HE DESCRIBED AS TANTAMOUNT TO LATENT IMPERIALISM HE SAID THE MANNER IN WHICH RUSSIA WAS SEEKING TO PUT PRESSURE ON NATO GIVES PAUSE FOR THOUGHT MOREOVER BOTH LECH WALESA THE POLISH PRESIDENT AND VACLAV HAVEL THE CZECH LEADER HAVE EXPRESSED PUBLIC IRRITATION ABOUT WHAT THEY SEE AS BEING LEFT IN LIMBO MR WALESA HAS CONDEMNED THE WEST'S HESITATION TO ALLOW EASTERN EUROPE TO JOIN NATO AS IRRESPONSIBLE AND SHORTSIGHTED WHILE MR HAVEL HAS COMPARED IT TO THE YALTA TREATY SIGNED AT THE END OF WORLD WAR II THAT PAVED THE WAY FOR SOVIET DOMINATION OF EASTERN EUROPE BEHIND THE RHETORIC ON ALL SIDES HOWEVER THERE IS SOME UNDERSTANDING OF THE TRICKY POSITION NATO FINDS ITSELF IN THE STUNNING SUCCESS OF VLADIMIR ZHIRINOVSKY A FIREBRAND RUSSIAN NATIONALIST IN RUSSIA'S ELECTIONS HAS MADE THE WEST EVEN MORE WARY ABOUT ALIENATING RUSSIA IN WARSAW JERZY MILEWSKI HEAD OF POLAND'S NATIONAL SECURITY ADMINISTRATION AND FIRST DEPUTY DEFENSE MINISTER SAYS HE REALIZES THAT IMMEDIATE NATO MEMBERSHIP ISN'T POSSIBLE BUT HE ADDS WE NEED TO KNOW THAT THE EXISTENCE OF THE NATION IS NOT THREATENED PARTNERSHIPS FOR PEACE DOESN'T PROVIDE A SUFFICIENTLY STRONG SIGNAL HE ARGUES TO PUT FLESH ON ITS BONES HE WANTS NATO TO PROVIDE CLEARER CRITERIA AND A TIMETABLE FOR EVENTUAL MEMBERSHIP IN THE MEANTIME HE SAYS POLAND WILL ASK FOR PERMISSION TO STATION A MILITARY EMISSARY IN MONS BELGIUM THE LOCATION OF SUPREME HEADQUARTERS OF ALLIED POWERS IN EUROPE AND FOR NATO TO SEND AN AMBASSADOR TO WARSAW HE ALSO WANTS NATO TO PROVIDE AIR SURVEILLANCE COVERING POLISH TERRITORY HELP IN DEVELOPING A CLEAR PLAN FOR INTEGRATION OF POLISH FORCES INTO NATOCOMPATIBLE EQUIPMENT AND COMMUNICATIONS AND ACCESS TO NATO MILITARY SCHOOLS MR HUNTER THE US NATO AMBASSADOR SAYS POLAND AND ITS NEIGHBORS WILL GET MANY OF THE THINGS THEY ARE ASKING FOR AND LONGER TERM HE ADDS THERE WILL BE NEW MEMBERS OF NATO IN THE FUTURE SOME WEST EUROPEAN NATIONS PARTICULARLY FRANCE AND GERMANY ARE EAGER TO FIND WAYS TO INTEGRATE EASTERN EUROPE MORE RAPIDLY THEY SEE THE WEST EUROPEAN UNION THE EMBRYONIC MILITARY WING OF THE 12NATION EUROPEAN UNION AS THE EUROPEAN COMMUNITY NOW IS CALLED AS PLAYING A GROWING ROLE IN EUROPEAN DEFENSE AND THEY ARE OFFERING SPECIAL ASSOCIATE STATUS IN THAT BODY TO POLAND PRESIDENT CLINTON IS EXPECTED TO SIGNAL AT THE SUMMIT THAT THE US IS PREPARED TO SUPPORT FULL DEVELOPMENT OF THE WEU SHIFTING AWAY FROM WASHINGTON'S TRADITIONAL WARINESS TOWARD THAT ORGANIZATION BUT THE WEU IS STILL YOUNG AND MOST EAST EUROPEAN OFFICIALS ARE SKEPTICAL THAT IT WILL BECOME AS RELIABLE A GUARANTOR OF THEIR SECURITY AS NATO WOULD BE 9401070005 940107 ECONOMY ADMINISTRATION TO SKIP DETAILS IN PHONE LAWS ESTABLISHING SPECIFIC RULES ON WIDER COMPETITION IS LEFT TO REGULATORS BY DANIEL PEARL AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CLINTON ADMINISTRATION OFFICIALS WHILE DRAFTING PROPOSED LAWS TO GOVERN TELECOMMUNICATIONS COMPETITION ARE PLANNING TO LEAVE MANY OF THE THORNY DETAILS TO OTHERS THE OFFICIALS SAID THE FEDERAL COMMUNICATIONS COMMISSION AND OTHER REGULATORS WOULD PLAY A BIG ROLE IN DETERMINING THE GROUND RULES FOR COMPETITION AMONG TELEPHONE CABLETELEVISION AND LONGDISTANCE COMPANIES ONE OFFICIAL SAID THEIR ROLE WOULD INCLUDE DECIDING WHAT SAFEGUARDS ARE NEEDED TO KEEP SINGLE COMPANIES FROM DOMINATING MARKETS AND DETERMINING WHEN THE GOVERNMENT SHOULD DRAFT REGULATIONS THAT APPLY TO PARTICULAR SERVICES SUCH AS TWOWAY VIDEO INSTEAD OF THE TECHNOLOGY THAT DELIVERS IT SUCH AS CABLE OR TELEPHONE MANY OF THE JUDGMENTS CAN BE DEALT WITH BETTER IN THE REGULATORY PROCESS RATHER THAN IN LEGISLATION COMMERCE SECRETARY RON BROWN TOLD REPORTERS HERE HE CITED RAPIDLY CHANGING TECHNOLOGY AND THE LAW OF UNINTENDED CONSEQUENCES AS REASONS CRITICS OF THE 1992 CABLE REGULATION LAW WHICH SET SPECIFIC PRICE BENCHMARKS FOR BASIC CABLE SERVICE SAY IT HAD THE UNINTENDED EFFECT OF SPURRING CABLE OPERATORS TO RAISE RATES FOR OTHER SERVICES STILL THE ADMINISTRATION HASN'T YET DETERMINED HOW MUCH TO SPELL OUT RULES ABOUT ISSUES SUCH AS CROSSSUBSIDIES AND HOW MUCH TO LEAVE THE ISSUES TO THE FCC AND STATE UTILITY COMMISSIONS DIFFERENT PEOPLE HAVE DIFFERENT IDEAS OF WHAT CONSTITUTES THE RIGHT LEVEL OF DETAIL ONE ADMINISTRATION OFFICIAL SAID DAYS BEFORE VICE PRESIDENT AL GORE IS SCHEDULED TO DESCRIBE THE ADMINISTRATION'S PLANS IN A LOS ANGELES SPEECH OFFICIALS INDICATE THAT MR GORE WILL USE THE SAME BROAD BRUSH THE WHITE HOUSE HAS USED FOR THE PAST SEVERAL MONTHS TO DESCRIBE ITS VISION FOR SPURRING INVESTMENT IN FIBEROPTIC NETWORKS THAT WILL CONVEY VOICE VIDEO AND INFORMATION THE SPEECH WILL LAY OUT THE BASIC PRINCIPLES OF THE ADMINISTRATION'S LEGISLATION MR BROWN SAID MEMBERS OF CONGRESS AND LOBBYISTS HAD BEEN EXPECTING SPECIFIC DETAILS NEXT WEEK BUT MR BROWN TOLD BUSINESS LEADERS THAT THE ADMINISTRATION HADN'T YET ANSWERED SEVERAL BASIC QUESTIONS ABOUT FUTURE GROUND RULES FOR TELECOMMUNICATIONS COMPETITION INCLUDING WHETHER EACH HOME SHOULD BE SERVED BY TWO LINES AND HOW TO ENSURE THAT EVERY HOME CAN AFFORD THE NEW INTERACTIVE SERVICES WHITE HOUSE AIDES MAINTAINED THAT SOME IMPORTANT ISSUES WILL BE LEFT TO THE FCC BECAUSE IT IS MORE FLEXIBLE AND WILL BE BETTER ABLE TO DEAL WITH ISSUES THAT CROP UP FIVE YEARS FROM NOW FOR INSTANCE IT IS UNLIKELY THAT MR GORE WILL ANSWER QUESTIONS INVOLVING HOW TO PROVIDE SUBSIDIES TO GUARANTEE UNIVERSAL SERVICE THAT ISSUE IS TOO COMPLEX TO RESOLVE TODAY WHEN NO ONE EVEN KNOWS HOW UNIVERSAL SERVICE WILL BE DEFINED IN FIVE OR 10 YEARS THE FCC HASN'T EXACTLY BEEN KNOWN FOR LIGHTNING SPEED IN REACTING TO CHANGE BUT FCC CHAIRMAN REED HUNDT IS A CLOSE FRIEND OF MR GORE A LEADER OF THE CLINTON ADMINISTRATION'S TELECOMMUNICATIONS PUSH IT'S FAIR TO SAY THE PRESIDENT VICE PRESIDENT AND SECRETARY HAVE A GREAT DEAL OF RESPECT FOR AND CONFIDENCE IN THE ABILITY OF REED HUNDT AND THE TEAM HE'S PUTTING TOGETHER SAID LARRY IRVING ASSISTANT COMMERCE SECRETARY ANOTHER REASON ADMINISTRATION OFFICIALS WISH TO AVOID SPECIFICS IN THEIR LEGISLATION IS TO AVERT BATTLES WITH CONGRESS WHICH WILL CONSIDER IN ADDITION TO THE ADMINISTRATION'S LEGISLATION AS MANY AS FOUR OTHER BILLS RELAXING BARRIERS TO COMPETITION IN TELECOMMUNICATIONS WITH A GENERAL BILL WE CAN SAY WHERE WE'RE HEADED WITHOUT PAINTING OURSELVES INTO A CORNER WHERE WE CAN'T WORK WITH HILL MEMBERS AN ADMINISTRATION OFFICIAL SAID INDEED AN AIDE TO REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE SAID ADMINISTRATION OFFICIALS HAVE TOLD MR DINGELL IN RECENT DAYS THEIR LEGISLATION WON'T CONFLICT WITH A COMPROMISE BILL MR DINGELL INTRODUCED WITH REP JACK BROOKS D TEXAS CHAIRMAN OF THE HOUSE JUDICIARY COMMITTEE THAT BILL WOULD ALLOW REGIONAL TELEPHONE COMPANIES TO PROVIDE LONGDISTANCE SERVICES ADMINISTRATION OFFICIALS WILL CONTINUE SOLICITING ADVICE FROM BUSINESSES EVEN AFTER THE WHITE HOUSE FILES ITS LEGISLATION YESTERDAY MR BROWN ANNOUNCED A 27MEMBER ADVISORY COUNCIL TO HELP DEVELOP THE ADMINISTRATION'S TELECOMMUNICATIONS POLICIES AND BRING US THE WISDOM OF MANY PERSPECTIVES BUT INDUSTRY OFFICIALS NOTED THAT SOME PERSPECTIVES ARE MUCH MORE APPARENT ON THE PANEL THAN OTHERS FOR EXAMPLE TWO LONGDISTANCE COMPANIES HAVE REPRESENTATIVES ON THE ADVISORY COUNCIL BUT LOCAL AND REGIONAL PHONE COMPANIES DON'T NOR DO ANY TELEVISION NETWORKS OR STUDIOS THOUGH THE COUNCIL DOES INCLUDE OFFICIALS OF TWO CABLE PROGRAMMERS JOHN COOKE OF THE DISNEY CHANNEL AND ROBERT JOHNSON OF BLACK ENTERTAINMENT TELEVISION THE PANEL WILL BE HEADED BY EDWARD MCCRACKEN CHIEF EXECUTIVE OF SILICON GRAPHICS INC A MOUNTAIN VIEW CALIF MAKER OF COMPUTER WORKSTATIONS AND DELANO LEWIS PRESIDENT OF NATIONAL PUBLIC RADIO OTHER MEMBERS INCLUDE NATHAN MYHRVOLD OF MICROSOFT CORP ALEX MANDL OF AMERICAN TELEPHONE & TELEGRAPH CO BERT ROBERTS OF MCI COMMUNICATIONS CORP STANLEY HUBBARD OF HUBBARD BROADCASTING MITCH KAPOR OF THE ELECTRONIC FRONTIER FOUNDATION AND BONNIE BRACEY A VIRGINIA ELEMENTARY SCHOOL TEACHER MR BROWN INSISTED THAT THE COUNCIL IS A DIVERSE GROUP AND SAID IT WON'T BE THE ONLY AVENUE FOR BUSINESSES TO INFLUENCE ADMINISTRATION POLICY A SPOKESWOMAN ALSO SAID THE ADMINISTRATION MAY ADD A BABY BELL REPRESENTATIVE THOUGH THE BELL COMPANIES ARE REPRESENTED THROUGH THEIR RESEARCH ARM BELLCORE 9401070002 940107 LEISURE & ARTS ON SPORTS BASKETBALL IS BEAUTIFUL BY FREDERICK C KLEIN WOODSTOCK NY CHARLEY ROSEN SAYS IT'S NOT TRUE THAT HE'S A LUNATIC WELL NOT ALL THE TIME ANYWAY I'M A PURIST AN HONEST MAN AND I HATE TO SEE A BEAUTIFUL THING DEFILED HE SAYS THERE HAVE BEEN TIMES WHEN MY SENSE OF INJUSTICE HAS GOTTEN THE BETTER OF ME THE BEAUTIFUL THING OF WHICH ROSEN SPEAKS IS BASKETBALL HE HAS COACHED IT FOR A GOOD MANY YEARS AND WHILE HIS PRESENT POST IS A MODEST ONE HE DIRECTS THE WOMEN'S TEAM AT THE STATE UNIVERSITY OF NEW YORK AT NEW PALTZ HIS PERSPECTIVE REMAINS UNIQUE FOR NINE YEARS HE WAS AN ASSISTANT OR HEAD COACH IN THE CONTINENTAL BASKETBALL ASSOCIATION THE SPORT'S MINORLEAGUE NETHERWORLD AND WITH SEVEN BOOKS ON BASKETBALL TO HIS CREDIT SIX OF THEM NOVELS HE'S THE GAME'S FOREMOST LITERARY CHRONICLER AT HIS EASE THE 6FOOT8 52YEAROLD IS A PLEASANT AND REFLECTIVE PERSON A SELFDESCRIBED OVERAGE HIPPIE WHOSE IDENTIFICATION WITH THE 1970S COUNTERCULTURE LED HIM TO ESTABLISH HIS HOME IN THIS UPSTATE NEW YORK COMMUNITY THAT IS ITS SPIRITUAL CAPITAL ONCE BALL MEETS FLOOR HOWEVER THAT TRANQUILITY HAS OFTTIMES PROVED FRAGILE ROSEN ONCE SPENT A DISMAL HOUR OR SO IN A CEDAR RAPIDS IOWA JAIL FOR TAKING A SWING AT AN OPPOSING COACH AFTER A GAME IN THAT CITY BUT MOST OF THE DISTURBERS OF HIS PEACE HAVE BEEN REFEREES HE RACKED UP 1700 IN FINES FOR TECHNICAL FOULS DURING ONE CBA SEASON AT 25 A CLIP THAT COMES OUT TO QUITE A FEW HE DISPUTES PUBLISHED REPORTS THAT FUMING OVER A CALL HE CONSIDERED UNJUST HE ATTEMPTED TO THROW HIS 50THBIRTHDAY CAKE AT A REFEREE DURING A HALFTIME CEREMONY HONORING HIM IN OKLAHOMA CITY WHEN HE COACHED THERE I WAS HOLDING A BALLOON IN ONE HAND AND THIS VERY BIG CAKE IN THE OTHER AND THE CAKE SLIPPED HE CLAIMS BUT HE ADDS AS I WAS LOSING CONTROL OF IT I DID THINK OF TRYING TO FLIP IT IN HIS THE REF'S DIRECTION AS ROSEN SEES IT THE PROBLEM WITH MANY YEA MOST REFEREES IS SIMPLE THEY DON'T UNDERSTAND THE GAME HE DESCRIBES AS BALLET WITH DEFENSE BASKETBALL AT ITS BEST HE SAYS IS NOT FIVE PLAYERS AGAINST FIVE OTHERS INSTEAD ALL 10 PLAY THE SAME GAME THIS CONDITION DOES NOT OBTAIN AUTOMATICALLY IT MUST BE DEVELOPED BY SKILLED ATHLETES FOLLOWING THE SPORT'S PRINCIPLES AND THEIR OWN INSTINCTS BUT ONCE IT DOES THERE'S A FLOW TO IT THAT HAS A LIFE OF ITS OWN THE PLAYERS DON'T KNOW IF THEY'RE WINNING OR LOSING OR VERY MUCH CARE IT TRANSCENDS THAT SORT OF CONCERN BUT JUST WHEN THE ACTION IS GETTING GROOVY SOME DUMB REF'LL BLOW HIS WHISTLE AND BRING EVERYONE BACK TO EARTH JUST ABOUT ALL REFEREES THINK THEY HAVE TO GRAB THE GAME AND BEND IT HE SAYS MOST HAVE NEVER REALLY PLAYED BASKETBALL SO THEY HAVE NO FEEL FOR IT THEY'RE LIKE BLIND MEN TALKING ABOUT ART BUT THERE THEY ARE IN TOTAL CONTROL CAN YOU BLAME ME FOR FREAKING OUT THE REAL WONDER IS WHY ANYONE WITH SENSE KEEPS COMING BACK FOR MORE BUT COME BACK ROSEN DID AGAIN AND AGAIN BIG AND STRONG AS A YOUTH AND ANYTHING BUT BALLETIC HE PLAYED COLLEGE BALL AT HUNTER COLLEGE IN HIS NATIVE NEW YORK HARDLY THE GAME'S BIG TIME REASON TOLD HIM HIS FUTURE LAY ELSEWHERE BUT HE STILL CONTINUED TO DELIVER HOOK SHOTS AND ELBOWS IN GOTHAM'S PLAYGROUNDS HE TAUGHT ENGLISH IN HIGH SCHOOL AND COLLEGE HIS FIRST PUBLISHED NOVEL HAVE JUMP SHOT WILL TRAVEL WAS NOMINATED FOR A NATIONAL BOOK AWARD HE GOT THIS FAR FROM RECEIVING A PHD IN MEDIEVAL STUDIES FROM ST JOHN'S UNIVERSITY BUT BALKED WHEN ASKED TO REVISE HIS DISSERTATION TITLED PSEUDODIONYSIUS AND THE ALLEGORY IN THE GENERAL PROLOGUE TO THE CANTERBURY TALES AND SOON AFTER FLED ACADEME FOR HIS FIRST LOVE HE EXPLAINS WRITING THAT BS THE FIRST TIME CONVINCED ME I DIDN'T WANT TO SPEND A LIFETIME TEACHING IT HE COACHED FOR A COUPLE SEASONS AT BARD COLLEGE IN NEW YORK AND DID SOME NBA SCOUTING THEN FRIEND PHIL JACKSON A FORMER NEW YORK KNICK ASKED HIM TO BE HIS ASSISTANT WITH THE CBA'S ALBANY PATROONS FOR JACKSON THE POST LED TO NBA TITLES WITH THE CHICAGO BULLS FOR ROSEN IT LED TO MORE CBA JOBS AS HEAD COACH IN SAVANNAH GA ROCKFORD ILL OKLAHOMA CITY AND FINALLY IN 199192 ALBANY HIS CBA STAY WAS HIGHLIGHTED BY A CHAMPIONSHIPFINALS BERTH AT ROCKFORD IN 1989 THE DOZEN OR SO OF HIS PLAYERS WHO GRADUATED TO THE BIGS AND HIS 1992 NOVEL THE COCKROACH BASKETBALL LEAGUE WHICH HE SAYS WAS AIMED AT CAPTURING THE BASIC ABSURDITY OF THE CIRCUIT THE MAIN THINGS ABOUT THE CBA WERE THAT EVERYBODY COACHES PLAYERS REFS WANTED TO BE SOMEWHERE ELSE AND THOUGHT HE WAS THERE ONLY BECAUSE SOMEBODY SCREWED HIM HE AVERS UNFORTUNATELY THAT INCLUDED HIM THE PLAN WAS FOR ME TO JOIN PHIL AS AN ASSISTANT IN CHICAGO BUT I GUESS I DIDN'T FIT THE BULLS' CORPORATE IMAGE HE ALLOWS I'M THE SPIRIT OF WOODSTOCK PAST AND ALL THE TROUBLE I GOT INTO DIDN'T HELP AS A CHARACTER IN COCKROACH PUTS IT THOUGH COACHING BEATS WORKING IT ALSO BEATS NOT WORKING SO AFTER A YEAR DEVOTED TO PENNING HIS NEXT NOVEL THE HOUSE OF MOSES ALLSTARS IT'S ABOUT A BEARDED TOURING BASKETBALL TEAM IN THE '30S ROSEN IS BACK ON THE BENCH WITH THE NEW PALTZ WOMEN EVEN THE CBA IT AIN'T SIX OF HIS 10 CHARGES ARE FRESHMEN ONE OF THE OTHERS IS A 31YEAROLD MOTHER OF TWO AND HIS TALLEST PLAYER WHO STANDS 6FOOT0 HAS SMALL HANDS AND FEET AND WANTS TO PLAY THE GAME WITH HER FINGERTIPS HE'S HAD TO CLEAN UP HIS LANGUAGE AND CEASE THREATENING TO TRADE HIS PLAYERS TO YAKIMA IF THEY BOTCH A PATTERN AND HIS TECHNICALFOUL TOTAL THROUGH EIGHT GAMES STANDS AT WHAT THE TV PITCHMEN MIGHT CALL A LOW LOW THREE HE'S LOVING IT THE GIRLS ARE BRIGHT AND HARDWORKING AND WANT NOTHING MORE FROM THE GAME THAN TO PLAY IT IT DOESN'T GET ANY PURER THAN THAT HE SAYS NOW IF THE REFS WOULD JUST GET LOST 9401070001 940107 WHAT'S NEWS BUSINESS AND FINANCE VIACOM AND BLOCKBUSTER ARE NEGOTIATING A MERGER AIMED AT ENABLING VIACOM TO TOP RIVAL QVC'S 98 BILLION BID IN THE BATTLE FOR PARAMOUNT IF VIACOM DOESN'T MAKE A NEW OFFER BY THE END OF TODAY QVC'S DILLER COULD WIN THE CONTEST BUT A VIACOMBLOCKBUSTER MERGER COULD PROLONG THE FIGHT FOR WEEKS WITH VIACOM LIKELY TO RAISE ITS CURRENT BID VALUED AT 93 BILLION THE BIGGEST US RETAIL CHAINS REPORTED MODERATE SALES GAINS FOR THE HOLIDAY PERIOD BUT THE RESULTS WERE ACHIEVED ONLY AFTER STEEP DISCOUNTING ESPECIALLY IN THE WEAK APPAREL SECTOR THE SEC IS INVESTIGATING WHETHER FORMER INVESCO FUNDS GROUP PORTFOLIO MANAGER JOHN KAWESKE VIOLATED FEDERAL SECURITIES LAWS BY ALLEGEDLY FAILING TO REPORT CERTAIN TRADES IN HIS PERSONAL ACCOUNT TO HIS EMPLOYER US MUTUAL STOCK FUNDS GAINED 1254 IN 1993 A YEAR IN WHICH INVESTORS SAW ACROSSTHEBOARD STRENGTH MUTUAL FUNDS INVESTING IN FOREIGN ISSUES SOARED 3940 ON AVERAGE PRUDENTIAL SECURITIES INVESTORS WHO BOUGHT LIMITED PARTNERSHIPS MORE THAN SIX YEARS AGO CAN STILL PURSUE A PRIVATE ARBITRATION CLAIM AGAINST THE BROKERAGE FIRM A STATE JUDGE RULED BONDHOLDERS OF RH MACY COULD END UP ON THE LOSING END OF THE RETAILER'S REORGANIZATION IF SENIOR CREDITORS ATTEMPT A CRAM DOWN AN OFTENTHREATENED THOUGH LITTLEUSED MANEUVER IN BANKRUPTCY WORKOUTS LABOR SECRETARY REICH SENT BOND PRICES SOARING BY SAYING THAT TODAY'S LABOR DATA PROBABLY WOULD SHOW PAYROLL GROWTH BELOW EXPECTATIONS THE LABOR DEPARTMENT LATER QUALIFIED HIS REMARKS THE TREASURY'S 30YEAR ISSUE ENDED UP 3/4 AND ITS YIELD FELL TO 634 HONG KONG STOCKS FELL 65 AND LEFT INVESTORS WONDERING WHETHER THE DROP MARKED THE END OF A LONG BULL RUN THE WHITE HOUSE UNVEILED ITS PLAN FOR CREATING A GOVERNMENT CORPORATION TO MANAGE THE NATION'S AIRTRAFFIC CONTROL SYSTEM IT ALSO PROPOSED LIMITING HOW LONG CARRIERS IN BANKRUPTCY PROCEEDINGS CAN HOLD LEASES AT AIRPORTS COMMERCE SECRETARY BROWN SUGGESTED A MAJOR ROLE FOR THE FCC AND OTHER REGULATORS IN LAYING GROUND RULES FOR TELECOMMUNICATIONS COMPETITION MERRYGOROUND IS ASKING ITS LARGEST SUPPLIERS FOR A NINEMONTH MORATORIUM ON PAYMENTS OF ITS TRADE DEBTS GOLDEN WEST FINANCIAL'S CHAIRMAN TOOK HIS 630 MILLION OFFER FOR TROUBLED CALFED DIRECTLY TO KEY SHAREHOLDERS AFTER BEING REBUFFED BY ITS BOARD THE BULK OF MGM'S 1992 LAWSUIT AGAINST THE STUDIO'S FORMER OWNER KIRK KERKORIAN AND OTHERS WAS THROWN OUT BY A STATE COURT JUDGE BUT A SIMILAR SUIT BY MGM'S OWNER CREDIT LYONNAIS WASN'T DIRECTLY AFFECTED T2 MEDICAL DISCLOSED THAT THE SEC IS STUDYING ITS RESTATEMENT LAST YEAR OF TWO QUARTERLY EARNINGS REPORTS AIG IS SET TO OFFER PATENTINFRINGEMENT INSURANCE THAT WILL COVER UP TO 5 MILLION A YEAR FOR LIABILITY AND LEGAL EXPENSES INCURRED BY DEFENDANTS IN PATENT CASES A MOVE THAT REFLECTS THE GROWING IMPORTANCE OF PATENT PROTECTION IN HIGHTECHNOLOGY INDUSTRIES AT&T LAUNCHED A BROADSIDE AGAINST THE CABLETV INDUSTRY WARNING THAT CABLE AND LOCAL TV DISTRIBUTION FIRMS WOULD IMPEDE THE FLOW OF INFORMATION IF THEY FOLLOW CABLE'S CURRENT GATEKEEPING PRACTICES BONDS LEHMAN BROTHERS TREASURY INDEX 552644 UP 3842 COMMODITIES OIL 1542 A BARREL UP 8 CENTS DOW JONES FUTURES INDEX 14107 OFF 015 SPOT INDEX 12857 UP 011 DOLLAR 11265 YEN OFF 025 17445 MARKS UP 00050 9401060187 940106 MARKETING & MEDIA MARKETSCAN PRIVATE LABELS SEEK TO SHAKE UP BEER MARKET BUT SO FAR FALL FLAT BY EBEN SHAPIRO NOW IT'S TUDOR TIME GUZZLERS OF MILLER AND OTHER BIG BRANDS NEVER DEVELOPED MUCH OF A TASTE FOR A&P'S NOW DEFUNCT TUDOR BEER BUT INTEREST IN PRIVATELABEL BEER IS BREWING AMONG SOME COMPANIES NOW THAT CONSUMERS HAVE GROWN ACCUSTOMED TO PUFFING CHEAP CIGARETTES AND DRINKING CHEAP COLAS WHILE TUDOR WON'T RETURN GREAT ATLANTIC & PACIFIC TEA CO THE BIG SUPERMARKET OPERATOR IS EXPLORING REINTRODUCING A BEER THIS TIME UNDER ITS MASTER CHOICE OR AMERICA'S CHOICE STORE BRAND NAMES OTHER RETAILERS AND BEVERAGE MAKERS ALSO ARE PLANNING PRIVATELABEL BEERS THE BEER MARKET IS A SITTING DUCK SAYS DAVID NICHOL A PRIVATELABEL CONSULTANT WITH LOBLAW COS AND OTHER COMPANIES THE BEER COMPANIES ARE AS VULNERABLE AS THE SOFTDRINK COMPANIES AND THE CIGARETTE COMPANIES PERHAPS BUT SO FAR THE NATION'S BIG BREWERS INCLUDING THE THREE LARGEST ANHEUSERBUSCH COS PHILIP MORRIS COS' MILLER BREWING SUBSIDIARY AND ADOLPH COORS CO HAVE FOUND AN EFFECTIVE ALBEIT PAINFUL WAY TO NEUTRALIZE PRIVATELABEL COMPETITION THEY ARE DISCOUNTING HEAVILY THEIR MAINSTAY PREMIUM BRANDS SUCH AS ANHEUSER'S BUDWEISER AND FOR TRULY STINGY QUAFFERS THEY'RE OFFERING UP CHEAP BRANDS SUCH AS NATURAL LIGHT ANHEUSER KEYSTONE COORS AND MILWAUKEE'S BEST MILLER SOME OF WHICH COST EVEN LESS THAN PRIVATE LABEL AS A RESULT PRIVATELABEL BEER PENETRATION IS ONE OF THE LOWEST IN ANY SUPERMARKET CATEGORY LESS THAN 1 AND FALLING ACCORDING TO DATA PROVIDED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SOME BEER OBSERVERS PLAY DOWN THE POTENTIAL FOR PRIVATELABEL BEER JERRY STEINMAN PUBLISHER OF BEER MARKETER'S INSIGHTS AN INDUSTRY NEWSLETTER BELIEVES CONSUMERS WILL GRAVITATE INSTEAD TO THE CHEAP BRANDS MADE BY THE BIG BREWERS BUT THE MOVES BY THE BIG BREWERS AREN'T STOPPING SOME COMPANIES FROM ENTERING THE MARKET IN CANADA PRIVATELABEL BEER SALES ARE ON THE RISE PROMPTING COTT CORP OF TORONTO A LARGE PRIVATELABEL BEVERAGE MAKER TO PLAN AN ASSAULT IN THE US COTT MAKES PRESIDENT'S CHOICE BEER IN CANADA HAVING LICENSED THE NAME FROM LOBLAW COTT DECLINES TO SAY WHETHER IT WOULD USE THE PRESIDENT'S CHOICE NAME IN THE US BUT ITS PRIVATELABEL BEER IS EXPECTED TO BE SOLD FIRST AT LUCKY STORES INC A BIG CALIFORNIA CHAIN LUCKY OFFICIALS DECLINE TO COMMENT ALREADY AT D'AGOSTINO SUPERMARKETS A NEW YORK SUPERMARKET CHAIN D'AGOSTINO BEER ACCOUNTS FOR ABOUT 3 OF BEER SALES AT THE STORES AND IS DEVELOPING A SMALL LOYAL FOLLOWING IT ATTEMPTS TO MIMIC MICROBREWERY FLAVOR SAYS MARK GEISTFELD A LAW PROFESSOR IN NEW YORK AND AN OCCASIONAL DRINKER OF D'AGOSTINO LIGHT BEER WHILE IT DOESN'T FULLY ACHIEVE THAT EFFECT THERE AREN'T ANY OTHER CHEAP LIGHT BEERS THAT ATTEMPT TO FILL THAT NICHE RETAILERS' INTEREST IN PRIVATELABEL BEER COULDN'T COME AT A WORSE TIME FOR THE BIG BREWERIES LAST MONTH ANHEUSERBUSCH TOLD DISTRIBUTORS IN CALIFORNIA THAT IT PLANNED TO CUT PRICES THERE TO BOLSTER SLUMPING SALES WITH PROFITS UNDER PRESSURE FROM THE EXTENSIVE DISCOUNTING THE THREE LARGEST BREWERS EACH RECENTLY ANNOUNCED JOB CUTS THERE'S LITTLE ROOM TO RAISE PRICES SO BREWERS HAVE BEEN FORCED TO CUT COSTS SAYS MR STEINMAN HE SAYS BEER SHIPMENTS WERE FLAT FOR THE FIRST NINE MONTHS OF 1993 AFTER LESS THAN A 1 INCREASE IN 1992 DESPITE THE PRESSURE TO CUT COSTS ADVERTISING BUDGETS FOR BREWERS REMAIN HIGH MAKING BEER A TEMPTING TARGET FOR PRIVATELABEL COMPETITION HEAVY AD SPENDING OFTEN SIGNALS THAT A CATEGORY IS RIPE FOR ATTACK FROM NONADVERTISED PRIVATELABEL PRODUCTS IN 1992 THE 10 MOST HEAVILY ADVERTISED BEER BRANDS ALONE SPENT 673 MILLION ON ADVERTISING ACCORDING TO COMPETITIVE MEDIA REPORTING PEOPLE ARE PAYING FOR A LOT OF ADVERTISING WHEN THEY BUY BUDWEISER OR MILLER SAYS RICHARD MCMAHON PRESIDENT OF MINNESOTA BREWING CO OF ST PAUL MINN THE COMPANY IS NEGOTIATING WITH SEVERAL RETAIL CHAINS ABOUT STARTING PRIVATELABEL BEER LINES MR MCMAHON ESTIMATES ADVERTISING ADDS ABOUT 2 TO 3 TO A CASE OF BEER THE AVERAGE COST OF A CASE OF BEER IS 1271 COMPARED WITH 907 FOR PRIVATE LABEL ACCORDING TO INFOSCAN DATA BUT BEERINDUSTRY EXECUTIVES CONTEND THAT ADVERTISING IMAGES OF BRAWNY CONSTRUCTION WORKERS AND POOLSHOOTING HIPSTERS PLAY A SIGNIFICANT ROLE IN SELLING BEER PEOPLE DO CARE WHAT BEER THEY DRINK THERE IS A KIND OF PRIDE SAYS A FORMER ANHEUSERBUSCH EXECUTIVE ROBERT S WEINBERG NOW A BEER CONSULTANT IN ST LOUIS HE ADDS THAT PRIVATELABEL BEERS DON'T HAVE MUCH OF AN IMAGE AND PROBABLY WON'T CATCH ON BEER IS A SOCIAL BEVERAGE AND AS SUCH HAS A BADGE VALUE SAYS A SPOKESMAN FOR MILLER BREWING PRIVATELABEL BEERS DON'T HAVE THE TRADITION HERITAGE OR QUALITY IMAGE THAT PREMIUM BRANDS FROM MAJOR BREWERS TYPICALLY HAVE BUT PHILIP MORRIS HAS ALREADY BEEN SEVERELY STUNG BY UNDERESTIMATING THE APPETITE FOR PRIVATELABEL BRANDS IN BOTH ITS CIGARETTE AND CHEESE BUSINESSES OFFICIALS AT ANHEUSERBUSCH AND COORS DECLINED TO COMMENT ON PRIVATELABEL COMPETITION PERHAPS THE MOST CONSIDERABLE OBSTACLE TO PRIVATELABEL BEER REMAINS THE COMPLEX AND VARIED LAWS THAT GOVERN BEER DISTRIBUTION MR MCMAHON OF MINNESOTA BREWING SAYS THAT ONLY ABOUT HALF OF THE STATES IN THE US ALLOW SUPERMARKETS TO SELL BEER WHAT'S MORE A NATIONAL THREETIER SYSTEM BREWER WHOLESALER AND RETAILER MANDATES THAT A MIDDLEMAN BUY BEER FROM BREWERS AND SELL IT TO RETAILERS IN ORDER FOR PRIVATELABEL BEER TO FLOURISH COMPANIES SUCH AS COTT WOULD NEED TO FIND A WAY TO SHIP DIRECTLY TO RETAILERS D'AGOSTINO GETS ITS BEER THROUGH A SMALL WHOLESALER WE FIND IT ABSOLUTELY AMAZING HOW MUCH POLITICAL CLOUT THE WHOLESALERS HAVE SAYS DAVID GOLDMAN A COTT VICE PRESIDENT 9401060186 940106 CANADA SELLS BONDS AT AUCTION OTTAWA THE CANADIAN GOVERNMENT SOLD AT AN AUCTION YESTERDAY 2 BILLION CANADIAN DOLLARS US152 BILLION OF 65 BONDS DUE JUNE 1 2004 AT AN AVERAGE YIELD OF 6673 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9401060185 940106 WHO'S NEWS BANK OF BOSTON CORP BANK OF BOSTON CORP BOSTON WILLIAM C VAN FAASEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BLUE CROSS AND BLUE SHIELD OF MASSACHUSETTS WAS ELECTED A DIRECTOR OF THIS BANK HOLDING COMPANY EXPANDING BOARD MEMBERSHIP TO 16 9401060184 940106 INDUSTRY FOCUS TOP STEELMAKERS WELCOME 1994 WITH 3 PRICE INCREASE GAINS MAY BE UNDERMINED AS STRONG MARKET SPURS IMPORTS OVERCAPACITY BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL BIG STEELMAKERS ARE STARTING THE NEW YEAR WITH A BANG A 3 PRICE INCREASE SLATED FOR THIS WEEK APPEARS TO BE HOLDING STRONG MOREOVER MOST MAJOR STEELMAKERS ARE BOOKED THROUGH THE FIRST QUARTER GIVING THEM CONFIDENCE ABOUT AN ADDITIONAL 2 PRICE INCREASE SCHEDULED FOR JULY WE FINISHED THE FOURTH QUARTER WITH OUR HIGHEST SHIPMENTS OF THE YEAR AND OUR FORWARD ORDER BOOK IS AS STRONG AS ITS BEEN IN THE LAST 12 MONTHS SAID THOMAS J USHER PRESIDENT OF US STEEL A UNIT OF USX CORP ALTHOUGH PURCHASES BY SERVICE CENTERS THE LARGEST BUYER OF STEEL WERE OFF IN JANUARY THEY'RE ALREADY SHOWING GAINS IN FEBRUARY AND MARCH HE SAID IRONICALLY THAT COULD BE A PROBLEM WITH THE US MARKET SO STRONG IMPORTS ARE CERTAIN TO SURGE SAYS PETER MARCUS AN ANALYST WITH PAINEWEBBER INC AND DOMESTIC STEELMAKERS CONFIDENT ABOUT FUTURE DEMAND ARE BEEFING UP CAPACITY INCLUDING NUCOR CORP WHICH IS ADDING SOME 17 MILLION TONS A YEAR AT ITS TWO FLATROLLED MILLS MR MARCUS FIGURES THAT CAPACITY TO PRODUCE HOTROLLED BAND STEEL WILL CLIMB IN 1994 BY THREE MILLION TONS OR ROUGHLY 17 MORE THAN 1993'S SHIPMENTS UNLESS DEMAND INCREASES PROPORTIONALLY EXCESS SUPPLY COULD UNDERMINE ANY PRICE RELIEF INDEED THERE ARE ALREADY SOME SMALL SIGNS OF WEAKNESS IN SOME CASES STEELMAKERS EXTENDED LOWER FOURTHQUARTER PRICES INTO THE FIRST QUARTER BUYERS ARE ALSO REPORTING DIFFICULTY PASSING ON THE PRICE INCREASE WHICH MAY PROMPT THEM TO BALK OR LOOK TO CHEAPER FOREIGN STEEL ROY WOLF PRESIDENT OF SUMMERVILLE STEEL CO IN SEATTLE SAYS HE ENCOUNTERED STRONG RESISTANCE WHEN HE TRIED TO PASS ALONG THE 10 INCREASE IN WHAT HE PAYS FOR BAR PRODUCTS WHILE HIS COMPETITORS ARE EATING THE PRICE RISE HE'S TRYING TO DEVELOP NICHE MARKETS SERVING SMALL TOOL AND DIE MAKERS WHICH ARE OFTEN IGNORED BY LARGER SERVICE CENTERS AND HAVE LITTLE CHOICE BUT TO ACCEPT HIS PRICES BIG STEEL SAYS IT NEEDS STEEPER PRICES TO OFFSET HIGHER COSTS EVEN AFTER THREE LARGELY SUCCESSFUL PRICE INCREASES IN 1993 SOME INTEGRATED PRODUCERS STILL POSTED LOSSES WELL INTO 1993 FOLLOWING BILLIONS IN LOSSES IN 1991 AND 1992 THIS PARTICULAR INCREASE SEEMS TO BE STICKING IN PART BECAUSE RENEGADE STEELMAKERS HAVEN'T TRIED TO GRAB MARKET SHARE BY UNDERMINING THE BOOST NO ONE HAS BROKEN RANKS SAYS ARNOLD W BRADBURD PRESIDENT OF INTERSTATE STEEL SUPPLY CO IN PHILADELPHIA THAT INCLUDES NUCOR THE CHARLOTTE NC MINIMILL THAT HAS OFTEN UNDERMINED PRICE INCREASES BY KEEPING ITS OWN PRICE LOW BUT IS INCREASING PRICES TO COVER THE HIGHER PRICE OF SCRAP ITS PRIMARY RAW MATERIAL IF NUCOR HADN'T GONE UP THE INTEGRATED PRODUCERS' PRICE INCREASE WOULDN'T FLY SAYS CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES BUT THERE ARE ALSO STRONG FUNDAMENTALS UNDERLYING THIS PRICE INCREASE INVENTORIES AT MILLS AND SERVICE CENTERS ARE AT A HISTORIC LOW COMPARED WITH SHIPMENTS SAYS CHRISTOPHER PLUMMER AN INDUSTRY CONSULTANT WITH RESOURCE STRATEGIES INC THE INDUSTRY SPENT MUCH OF 1993 RUNNING CLOSE TO 90 OF CAPACITY THANKS TO THE CONTINUED STRENGTH OF THE STEELCONSUMING AUTOMOTIVE MARKET NOW DEMAND IS COMING FROM OTHER SECTORS TOO SUCH AS APPLIANCE MAKERS AS HOUSING STARTS CLIMB SIGNALING THE ECONOMY'S BROADENING STRENGTH NOTES MICHELLE GALANTER APPLEBAUM AN ANALYST WITH SALOMON BROTHERS IN FACT STEELMAKERS ARE EXTENDING DELIVERY TIMES TO CATCH UP WITH DEMAND BUTLER MANUFACTURING CO HAS WATCHED ITS STEEL SUPPLIERS PUSH DELIVERY TIMES OUT AS MUCH AS TWO WEEKS IN JUST THE LAST SIX WEEKS SAYS DON PRATT PRESIDENT OF THE COMMERCIAL MAKER OF STEEL BUILDINGS IN KANSAS CITY MO HIGHER SPOTMARKET PRICES ALSO ARE LIKELY TO TRANSLATE INTO CONTRACTED INCREASES WITH BIG AUTO AND APPLIANCE MANUFACTURERS ALTHOUGH PROBABLY NOT AS HIGH AS THE SPOT MARKET'S 3 MOREOVER GIVEN THE CURRENT MARKET STRENGTH INTEGRATED STEELMAKERS ARE ELIMINATING OTHER DISCOUNTS THAT IN EFFECT LOWERED PRICES FOR EXAMPLE CUSTOMERS SAY THEY NO LONGER CAN BUY STEEL BASED ON A THEORETICAL WEIGHT A SYSTEM THAT TYPICALLY AMOUNTED TO FREEBIES FOR BUYERS THE NEW RULE ADDS ANYWHERE FROM 2 TO 10 TO THE COST SAYS MR PRATT OF BUTLER MANUFACTURING ALL THIS COULD CHANGE IF SUPPLY DOES SURGE AS MR MARCUS PREDICTS THERE'S ALREADY BEEN SOME SLIPPAGE IN PRICING HE SAYS ALONG WITH NUCOR'S EXPANSIONS THE INDUSTRY WILL HAVE INTEGRATED PRODUCER LTV CORP'S REVAMPED CLEVELAND WEST PLANT AND GENEVA STEEL'S NEW CONTINUOUS CASTER BOTH OF WHICH WILL ADD CAPACITY INDEED FEARS OF OVERCAPACITY CONTRIBUTED TO BIRMINGHAM STEEL CORP'S DECISION LAST WEEK TO DITCH AN ATTEMPT TO BUILD A MINIMILL IN ARIZONA NORTH STAR STEEL CO A UNIT OF CARGILL INC ALREADY WAS FURTHER ALONG WITH ITS PLANS FOR A SIMILAR VENTURE IN THE STATE IMPORTS ARE ON THE RISE AS WELL A TREND MR MARCUS SAYS BEGAN IN DECEMBER HAVING WON IN JULY THE BULK OF UNFAIR TRADE CASES FILED AGAINST THEM BY US STEELMAKERS FOREIGN PRODUCERS NOW FEEL FREE TO TARGET BUSINESS HERE AND FOREIGN STEELMAKERS HAVE A BIG COST ADVANTAGE FOR INSTANCE COLDROLLED SHEET COSTS 325 A TON IN EUROPE MUCH LESS THAN THE 520 A TON IN THE US MR MARCUS SAYS EVEN WITH 65 A TON SHIPPING COSTS US PRODUCERS HAVE APPEALED THE INTERNATIONAL TRADE COMMISSION RULINGS STRIKING DOWN DUTIES ON FOREIGN STEEL BUT OBSERVERS GIVE THEM LITTLE CHANCE OF SUCCESS AND NOTE THAT NEW CASES WOULDN'T BE REFILED BEFORE FALL US STEEL'S MR USHER SAID HE SEES NO EVIDENCE OF A SUPPLY SURGE IF WE WERE GOING TO SEE THAT WE'D BE SEEING MORE EVIDENCE OF THAT NOW HE SAID MR USHER SAID IT'S DIFFICULT TO FORECAST WHETHER THE JULY PRICE INCREASE WILL STICK THOUGH THE INDUSTRY'S FUNDAMENTALS LOOK STRONG NOW EVEN IF STEELMAKERS DO FACE PRICING PRESSURES OVER THE NEXT FEW MONTHS PAINEWEBBER'S MR MARCUS PREDICTS PRICING POWER WILL RETURN TO THE PRODUCERS BEGINNING IN 1995 THAT'S WHEN HE EXPECTS THE ECONOMIES IN EUROPE AND JAPAN WILL RECOVER FUELING WORLDWIDE DEMAND AND CREATING A STEEL SHORTAGE 9401060183 940106 WHO'S NEWS SIERRA PACIFIC RESOURCES CO SIERRA PACIFIC RESOURCES CO RENO NEV WALTER M HIGGINS 49 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THIS UTILITY HOLDING COMPANY SUCCEEDING AUSTIN W STEDHAM 65 WHO IS RETIRING MR HIGGINS RETAINS HIS POSITION AS PRESIDENT BUT WILL GIVE UP HIS POST OF CHIEF OPERATING OFFICER MR STEDHAM WILL KEEP HIS SEAT ON THE BOARD 9401060182 940106 BUSINESS BRIEF PACKARD BELL IS PLANNING A MAKEOVER OF ITS HOME PCS TO HUMANIZE' THEM PACKARD BELL ELECTRONICS INC THE LEADER IN THE BOOMING HOMECOMPUTER MARKET PLANS TO ANNOUNCE TODAY A DESIGN AND MARKETING MAKEOVER AIMED AT HUMANIZING ITS MACHINES THE COMPANY'S STRATEGY TO BE UNVEILED AT THE WINTER CONSUMER ELECTRONICS SHOW IN LAS VEGAS INCLUDES REDESIGNED EXTERIORS FOR ALL OF ITS DESKTOP COMPUTERS A NEW LOGO AND A NEW TELEVISION CAMPAIGN EXPECTED LATER THIS YEAR THAT WILL STRESS THE COMPUTERS' USEFULNESS TO TECHNOPHOBES OFFICIALS AT THE CLOSELY HELD COMPUTER MAKER WHICH IS BASED IN CHATSWORTH CALIF SAY THE REVAMPING IS AIMED AT SOFTENING THE IMAGE OF ITS PERSONAL COMPUTERS FOR CONSUMERS STILL INTIMIDATED BY TECHNOLOGY PEOPLE ARE STILL UNCOMFORTABLE WITH THE IDEA THAT A COMPUTER IS A FRIENDLY EASY THING TO USE SAYS MAL D RANSOM PACKARD BELL'S VICE PRESIDENT OF MARKETING PART OF OUR EFFORT IS TO HUMANIZE COMPUTERS TO ACCOMPLISH THAT PACKARD BELL WILL REPLACE ITS STRIPED LOGO WITH A STYLIZED HUMAN FACE AND SIMPLIFY THE PAMPHLETS AND PACKAGING THAT ACCOMPANY ITS PCS ON RETAIL SHELVES A NEW MULTIMEDIA COMPUTER SCHEDULED TO COME OUT NEXT MONTH WILL BE THE FIRST PACKARD BELL MACHINE REDESIGNED TO MAKE IT LOOK FRIENDLIER MR RANSOM SAYS HE WOULDN'T PROVIDE DETAILS OTHER THAN TO SAY THAT IT WILL HAVE A SMOOTHER SIMPLIFIED LOOK THE NEW STRATEGY REFLECTS THE INCREASED COMPETITION IN THE HOMECOMPUTER MARKET ALTHOUGH PACKARD BELL STILL DOMINATES THAT FASTGROWING NICHE IT NOW MUST COMPETE MORE DIRECTLY WITH MACHINES DESIGNED ESPECIALLY FOR HOME USE BY COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND EVEN MAILORDER MARKETER DELL COMPUTER CORP ALL HAVE EXPANDED THEIR RETAIL PRESENCE IN HOPES OF CAPTURING A HOME PC MARKET THAT HAS BECOME COMPUTING'S HOTTEST DESKTOP NICHE CHANNEL MARKETING CORP A DALLAS COMPUTER CONSULTING FIRM ESTIMATES THAT THE MARKET FOR HOME PCS WILL GROW ABOUT 58 THIS YEAR TO 93 MILLION COMPUTERS FROM 59 MILLION IN 1993 ANALYSTS SAY NEARLY A QUARTER OF ALL PCS SOLD THROUGH MASSMARKET RETAILERS CARRY THE PACKARD BELL LOGO MORE THAN DOUBLE THE MARKET SHARE OF IBM THE NEXTCLOSEST COMPETITOR PACKARD BELL'S MR RANSOM PREDICTS THAT THE COMPANY'S SALES WILL REACH 23 BILLION THIS YEAR COMPARED WITH 125 BILLION IN 1993 9401060181 940106 TANDY'S RETAIL SALES RISE FORT WORTH TEXAS TANDY CORP SAID DECEMBER RETAIL SALES IN THE US ROSE 18 TO 687 MILLION FROM 5814 MILLION A YEAR EARLIER THE ELECTRONICS RETAILER SAID SALES AT STORES OPEN MORE THAN A YEAR INCREASED 8 STORES CLOSED UNDER THE COMPANY'S RESTRUCTURING PLAN WEREN'T INCLUDED IN THE RESULTS 9401060180 940106 ASHLAND COAL SHELF REGISTRATION HUNTINGTON WVA ASHLAND COAL INC SAID MOST HOLDERS OF ASHLAND COAL COMMON STOCK ACQUIRED IN CONJUNCTION WITH THE COMPANY'S 1992 ACQUISITION OF DALTEX COAL CORP HAVE ACCEPTED THE COMPANY'S OFFER TO EXTEND THE EFFECTIVENESS OF THE SHELF REGISTRATION STATEMENT THE COMPANY SAID THE EXTENSION COVERS ABOUT 18 MILLION SHARES ASHLAND SAID ITS OBLIGATION TO MAINTAIN THE CURRENT REGISTRATION WOULD HAVE EXPIRED ON THE EARLIER OF THE DATE ALL REGISTERED SHARES ARE SOLD OR MAY 10 ASHLAND SAID IT WOULD MAINTAIN THE AMENDED REGISTRATION STATEMENT FOR A YEAR BEGINNING ON THE DATE THE SECURITIES AND EXCHANGE COMMISSION DECLARES THE AMENDED STATEMENT EFFECTIVE 9401060179 940106 WHO'S NEWS EL PASO ELECTRIC CO EL PASO ELECTRIC CO EL PASO TEXAS THREE SENIOR OFFICERS TOOK VOLUNTARY EARLY RETIREMENT FROM THIS UTILITY COMPANY THEY ARE WILLIAM J JOHNSON 52 YEARS OLD A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER IGNACIO R TRONCOSO 47 SENIOR VICE PRESIDENT OPERATIONS AND WILLIAM W ROYER 49 SENIOR VICE PRESIDENT SPECIAL PROJECTS A COMPANY SPOKESMAN SAID THE RETIREMENTS WERE PART OF THE COMPANY'S EFFORT TO ALIGN ITS CORPORATE STRUCTURE MORE CLOSELY WITH THAT OF CENTRAL & SOUTHWEST CORP OF DALLAS WHICH HAS AGREED TO ACQUIRE THE COMPANY 9401060178 940106 CREATIVE TECHNOLOGY SETTLEMENT SINGAPORE CREATIVE TECHNOLOGY LTD SAID IT WON A SETTLEMENT AGAINST COVOX INC FOR RIGHTS TO THE SOUND BLASTER TRADEMARK CREATIVE THE MAKER OF SOUND BLASTER AUDIO CARDS FOR PERSONAL COMPUTERS LAST YEAR SUED COVOX A SPEECHRECOGNITION SOFTWARE MAKER ALLEGING THAT COVOX'S VOICE BLASTER PRODUCT INFRINGED ON THE SOUND BLASTER NAME UNDER TERMS OF THE SETTLEMENT COVOX AGREED TO DROP ALL OPPOSITIONS TO CREATIVE'S TRADEMARK APPLICATIONS AND WILL PAY ROYALTIES TO CREATIVE FOR USE OF THE VOICE BLASTER NAME ON PRODUCTS SHIPPED BEFORE JUNE 30 1994 AFTER JULY 1 COVOX MAY NOT ADVERTISE OR PROMOTE ITS PRODUCT AS VOICE BLASTER CLOSELY HELD COVOX IN EUGENE ORE DIDN'T RETURN PHONE CALLS 9401060177 940106 WHO'S NEWS SEDGWICK GROUP PLC SEDGWICK GROUP PLC LONDON JIM PAYNE RETIRED AS CHAIRMAN OF SEDGWICK PAYNE LTD A UNIT OF THIS INSURANCE BROKERAGE CONCERN EFFECTIVE LAST FRIDAY MR PAYNE ALSO WILL RETIRE AS VICE CHAIRMAN AND A MEMBER OF SEDGWICK GROUP'S BOARD ON MARCH 3 THE COMPANY SAID THAT THE DEPARTURE OF MR PAYNE 56 YEARS OLD IS VOLUNTARY ADDING THAT HE HAD GRADUALLY REDUCED HIS RESPONSIBILITIES DURING 1993 MR PAYNE WILL BE SUCCEEDED IMMEDIATELY BY JONATHAN GILBERT A BOARD DIRECTOR OF SEDGWICK GROUP AND DEPUTY CHAIRMAN AND MANAGING DIRECTOR OF SEDGWICK PAYNE 9401060176 940106 INTERNATIONAL GOOD NEWS FUELS RUNUP IN SHARES OF EUROTUNNEL BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL COULD IT BE THERE'S A LIGHT AT THE END OF THE CHUNNEL STOCK IN EUROTUNNEL THE ANGLOFRENCH COMPANY THAT WILL OPERATE THE MUCHAWAITED TUNNEL UNDER THE ENGLISH CHANNEL IS ENJOYING A RUNUP THAT BEGAN IN EARLY DECEMBER IN LONDON YESTERDAY EUROTUNNEL PLC SHARES CLOSED AT 644 PENCE 956 UP 14 PENCE 21 CENTS WHILE IN PARIS SHARES OF EUROTUNNEL SA CLIMBED 16 FRENCH FRANCS 27 CENTS TO CLOSE AT 571 FRANCS 968 THAT'S UP ABOUT 40 FROM THE DEC 1 PRICE ON BOTH EXCHANGES BETTER STILL ANALYSTS SEE ROOM FOR EUROTUNNEL SHARES TO RISE EVEN FURTHER DESPITE HINTS OF A PRICE WAR BY CHANNEL FERRY OPERATORS THAT MARKS A BIG CHANGE FROM A YEAR AGO WHEN EUROTUNNEL WAS MIRED IN A DISPUTE WITH CONTRACTORS CASH WAS RUNNING LOW AN OPENING DATE PROVED ELUSIVE AND THE STOCK SANK TO 2810 FRANCS IN PARIS AND 339 PENCE IN LONDON THE TURNAROUND BEGAN DEC 10 WHEN EUROTUNNEL TOOK OVER THE CHANNEL FROM THE BUILDING CONTRACTORS LOWER BRITISH AND FRENCH INTEREST RATES GAVE THE SHARES ADDITIONAL STEAM THEN CAME NEWS THAT THE FRENCH AND BRITISH GOVERNMENTS HAD EXTENDED EUROTUNNEL'S RIGHT TO OPERATE THE TUNNEL FOR AN ADDITIONAL 10 YEARS THAT NEWS ADDED ABOUT 10 TO THE VALUE OF THE SHARES BECAUSE IT BOOSTS THE COMPANY'S LONGTERM REVENUE POTENTIAL ANALYSTS SAY FINALLY THE COMPANY'S LEAD BANKING SYNDICATE ON TUESDAY APPROVED EUROTUNNEL'S FUNDING PLAN WHICH INCLUDES A COMMITMENT BY LENDERS TO PROVIDE NEW FUNDS AND PAVES THE WAY FOR A LONGEXPECTED 500 MILLION 7425 MILLION RIGHTS ISSUE MEANWHILE EVERYTHING IS GO FOR THE MAY 6 OPENING DATE SOME ANALYSTS THINK THE RECENT GOOD NEWS IS JUST THE BEGINNING THEY POINT TO NEXT WEEK WHEN EUROTUNNEL UNVEILS ITS FARE STRUCTURE ON TUESDAY AND THEN A DAY LATER STARTS TO SELL TICKETS AT LONG LAST THE MONEY WILL START TO COME IN BRITISH NEWS REPORTS SAY THE TUNNEL'S BASIC TOURIST RATE FOR PASSENGERS PUTTING THEIR CAR ON EUROTUNNEL'S LE SHUTTLE SERVICE WILL RANGE FROM 160 TO 260 DEPENDING ON THE SEASON THAT WOULD MAKE IT SLIGHTY MORE EXPENSIVE THAN TRAVEL BY BOAT EUROTUNNEL DECLINES TO CONFIRM THE REPORTED FARES BUT THEY REASSURE INVESTORS WORRIED ABOUT AN AIRLINESTYLE ROUND OF FARE CUTS WE DON'T WANT A PRICE WAR BUT OUR PRICES WILL BE COMPETITIVE WITH THE FERRIES SAYS A EUROTUNNEL SPOKESWOMAN EUROTUNNEL UNDOUBTEDLY FACES STIFF COMPETITION FROM THE ESTABLISHED FERRY OPERATORS ON WEDNESDAY STENA SEALINK OWNED BY SWEDEN'S STENA LINE AB ANNOUNCED IT WILL ABANDON ITS PRACTICE OF CHARGING PASSENGERS ACCORDING TO DEPARTURE TIME IN FAVOR OF A SEASONAL FARE STRUCTURE A MOVE THE COMPANY SAYS WILL HELP IT COMPETE WITH EUROTUNNEL THE OTHER FERRY OPERATOR P&O EUROPEAN FERRIES LTD A UNIT OF PENINSULAR & ORIENTAL STEAM NAVIGATION CO OF THE UNITED KINGDOM SAID IT WILL WAIT FOR EUROTUNNEL TO ANNOUNCE ITS PRICE STRUCTURE BEFORE MAKING ANY CHANGES OF ITS OWN AND NOT EVERYONE THINKS EUROTUNNEL IS OUT OF THE DARK JUST YET SKEPTICS POINT FIRST TO THE FACT THAT THE CHANNEL TUNNEL IS AN UNPROVEN ENTERPRISE WITH A HUGE DEBT LOAD THEY NOTE THAT THE ENTIRE CROSSCHANNEL FERRY MARKET FOR PASSENGERS AND FREIGHT PRODUCES ONLY ABOUT 600 MILLION REVENUE A YEAR EUROTUNNEL STILL HAS SEVERAL OUTSTANDING FINANCIAL ISSUES TO RESOLVE AS IT NEARS COMPLETION OF THE 10 BILLION PROJECT ALTHOUGH THE BANK SYNDICATE HAS APPROVED THE COMPANY'S FUNDING PLAN EUROTUNNEL STILL MUST COMPLETE NEGOTIATIONS FOR AN ADDITIONAL 500 MILLION IN LOANS AND THE RIGHTS ISSUE PLANNED FOR THIS SPRING THERE STILL ARE A NUMBER OF HURDLES SUCH AS THE RIGHTS ISSUE AND THE COMPANY'S ABILITY TO GENERATE SUFFICIENT TRAFFIC SAYS ONE LONDON ANALYST WHO ASKS NOT TO BE IDENTIFIED IT'S AN INCREDIBLY SENTIMENTDRIVEN STOCK THAT YOYOS AROUND ON THE SLIGHTEST NEWS 9401060175 940106 ALASKA AIR'S TRAFFIC SEATTLE ALASKA AIR GROUP INC SAID DECEMBER TRAFFIC INCREASED FOR BOTH ITS UNITS ALASKA AIRLINES FLEW 5409 MILLION REVENUE PASSENGER MILES IN DECEMBER UP 31 FROM 4124 MILLION A YEAR EARLIER LOAD FACTOR WAS 622 UP FROM 545 A YEAR EARLIER HORIZON AIR FLEW 529 MILLION REVENUE PASSENGER MILES UP 20 FROM 40 MILLION A YEAR EARLIER LOAD FACTOR FOR THE MONTH WAS 616 UP FROM 574 A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PASSENGER FLOWN ONE MILE LOAD FACTOR IS THE PERCENTAGE OF A CARRIER'S SEATS FILLED BY PAYING PASSENGERS 9401060174 940106 ECONOMY FACTORY ORDERS INCREASED BY 14 DURING NOVEMBER BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW ORDERS FOR FACTORY GOODS CLIMBED A HEALTHY 14 IN NOVEMBER THE COMMERCE DEPARTMENT SAID ANOTHER SIGN THAT THE ECONOMY WAS SURGING TO CLOSE OUT 1993 NOVEMBER'S GROWTH CAME ON TOP OF A 12 GAIN IN OCTOBER AND WAS THE FOURTH CONSECUTIVE INCREASE IN FACTORY ORDERS THE PICKUP IN MANUFACTURING ACTIVITY SUGGESTS FACTORY EMPLOYMENT WILL INCREASE SIGNIFICANTLY IN THE COMING MONTHS THE NOVEMBER BOOST IN ORDERS WAS BROADBASED WITH GAINS IN NEARLY EVERY MAJOR INDUSTRY GROUP AIRCRAFT AND AUTO ORDERS WERE PARTICULARLY STRONG THE REPORT CONFIRMS EARLIER COMMERCE DEPARTMENT STATISTICS SHOWING STRONG NOVEMBER INCREASES IN ORDERS FOR DURABLE GOODS THESE BOOKINGS ROSE 19 IN NOVEMBER AFTER CLIMBING 26 IN OCTOBER ORDERS FOR NONDURABLE GOODS WHICH ARE LESS SENSITIVE TO LOW INTEREST RATES WEREN'T AS ROBUST RISING 09 IN NOVEMBER AFTER FALLING 04 IN THE PRECEDING MONTH SOME FIGURES IN THE REPORT CAST SHADOWS ON THE FACTORY JOBS OUTLOOK THE NUMBER OF UNFILLED ORDERS PLUNGED 06 TO ITS LOWEST LEVEL SINCE MAY 1988 ALSO ORDERS FOR INDUSTRIAL MACHINERY ROSE 49 FOLLOWING A 20 INCREASE IN OCTOBER ALTHOUGH THE GAINS BOOSTED THE INDUSTRY'S GROWTH THE MACHINERY SALES TRANSLATE TO FEWER FACTORY JOBS ACCORDING TO THOMAS RUNIEWICZ AN INDUSTRIAL ANALYST WITH THE WEFA GROUP IN SUBURBAN PHILADELPHIA MANUFACTURERS ARE CONTINUING TO GEAR UP TO IMPROVE EFFICIENCY MR RUNIEWICZ SAID THERE'S A LOT OF INVESTMENT IN PLANT MACHINERY WHICH MEANS LOWER JOB GROWTH STILL ANALYSTS WERE ENCOURAGED BY THE APPARENT TURNAROUND AT THE NATION'S FACTORIES AFTER MONTHS OF DISAPPOINTING GROWTH THE WHOLE INDUSTRY SYSTEM WILL BE LOOKING UPWARD MR RUNIEWICZ SAID THIS IS SETTING THE STAGE FOR A SOLID 1994 ORDERS FOR STONE AND GLASS PRODUCTS AND PRIMARY METALS ALL LINKED TO STEADY GROWTH IN THE CONSTRUCTION BUSINESS POSTED HEALTHY GAINS DURING THE MONTH ELECTRONICEQUIPMENT ORDERS PLUMMETED 77 OFFSETTING A 45 RISE IN OCTOBER THE CATEGORY THAT INCLUDES APPLIANCES POSTED A 203 DECLINE AFTER A 151 GAIN IN OCTOBER ALL FIGURES ARE SEASONALLY ADJUSTED HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9401060173 940106 INVESCO FUNDS FIRES KAWESKE A STAR MANAGER BY ROBERT MCGOUGH AND SARA CALIAN STAFF REPORTERS OF THE WALL STREET JOURNAL IN A MOVE THAT STUNNED THE MUTUALFUND INDUSTRY INVESCO FUNDS GROUP FIRED STAR PORTFOLIO MANAGER JOHN KAWESKE FOR ALLEGEDLY VIOLATING INVESCO'S RULES ABOUT REPORTING PERSONAL SECURITIES TRADES DENVERBASED INVESCO SAID MR KAWESKE WHOM IT DISMISSED ON TUESDAY HAD VIOLATED ITS CODE OF CONDUCT BY NOT GETTING APPROVAL FOR OR NOT REPORTING CONFIRMATION OF A NUMBER OF SECURITIES TRADES WE STRESS THAT THESE UNFORTUNATE CIRCUMSTANCES INVOLVE MR KAWESKE'S PERSONAL ACCOUNTS AND HAD ABSOLUTELY NO IMPACT ON INVESTORS IN THE INVESCO FUNDS DAN HESSER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INVESCO FUNDS GROUP SAID IN A PRESS RELEASE JOHN ZESCHIN EXECUTIVE VICE PRESIDENT AT INVESCO SAID MR KAWESKE APPARENTLY COMMITTED SOME TECHNICAL VIOLATIONS OF FEDERAL LAW GOVERNING MUTUAL FUNDS BUT HE STRESSED THAT THOSE VIOLATIONS WEREN'T MAJOR MATTERS HE SAID INVESCO REPORTED TO THE SECURITIES AND EXCHANGE COMMISSION WHAT HAS TRANSPIRED ANDREW LEVANDER MR KAWESKE'S ATTORNEY SAID I DON'T BELIEVE THERE ARE ANY VIOLATIONS THAT OCCURRED HERE BUT IF THERE ARE THEY ARE HIGHLY TECHNICAL IN NATURE MR KAWESKE 52 YEARS OLD WAS FIRED FROM HIS POSITIONS AS MANAGER OR COMANAGER FOR THREE INVESCO FUNDS WITH ASSETS OF 46 BILLION OR NEARLY HALF THE 10 BILLION MANAGED AT INVESCO FUNDS GROUP MR KAWESKE REACHED AT HIS HOME DESCRIBED HIS FIRING AS QUITE SHOCKING HE SAID THAT THE VIOLATIONS OF INVESCO'S CODE OF CONDUCT WERE TECHNICAL AND FEW IN NUMBER AND THAT INVESCO'S ACTION WENT BEYOND REASON JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A NEWSLETTER IN CHICAGO COMMENTED THAT THE DRACONIAN LANGUAGE USED IN THE ANNOUNCEMENT INDICATES THAT THERE IS MORE TO THIS STORY MOST MANAGERS JUST GET A SLAP ON THE WRIST IF THEY FAIL TO FILL OUT THE PAPERWORK MR KAWESKE ENJOYED CLOSE TO SUPERSTAR STATUS AMONG MUTUALFUND MANAGERS ESPECIALLY A COUPLE OF YEARS AGO WHEN THE HEALTHCARE STOCKS HE SPECIALIZED IN DROVE INVESCO STRATEGIC HEALTH SCIENCES FUND TO THE PINNACLE OF PERFORMANCE HIS FUNDS HAVE SUFFERED ALONG WITH THE DOWNTURN IN HEALTHCARE AND BIOTECHNOLOGY STOCKS DURING THE PAST TWO YEARS BUT INVESCO INDUSTRIAL INCOME FUND WHICH HE RAN IN CONJUNCTION WITH TWO OTHER PORTFOLIO MANAGERS WAS CONSIDERED ONE OF THE BESTPERFORMING LOWRISK MUTUAL FUNDS IN THE COUNTRY HE HAS FREQUENTLY BEEN PROFILED IN NATIONAL BUSINESS AND INVESTING PUBLICATIONS MR KAWESKE'S FALL FROM GRACE IS REALLY SURPRISING DEFINITELY OUT OF LEFT FIELD SAID KENNETH GREGORY EDITOR OF NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER I CAN'T THINK OF ANY OTHER INSTANCES OF A BIGNAME HIGHPROFILE MANAGER BEING FIRED FOR ETHICAL REASONS FROM THE '80S ON HE HAS MADE QUITE A NAME FOR HIMSELF IF THE ALLEGATIONS AGAINST MR KAWESKE ARE TRUE IT GIVES US ALL IN THE FUND INDUSTRY A BAD NAME SAID RODNEY LINAFELTER COMANAGER OF TWO FUNDS AT BERGER ASSOCIATES ALSO IN DENVER HISTORICALLY THIS INDUSTRY HAS BEEN VERY VERY CLEAN MR KAWESKE HASN'T BEEN CHARGED WITH DOING ANYTHING ILLEGAL SEVERAL YEARS AGO SOME FUND MANAGERS AND ANALYSTS WERE CAUGHT UP IN CHARGES THAT THEY HAD ACCEPTED ILLEGAL INDUCEMENTS TO BUY JUNK BONDS FROM DREXEL BURNHAM LAMBERT SECURITIES FIRMS INCLUDING FUND ADVISERS ARE BY FEDERAL LAW REQUIRED TO HAVE A COMPLIANCE MANUAL AND CODE OF ETHICS TO GUARD AGAINST THE USE OF INSIDE INFORMATION SAYS ROY ADAMS A FUND ATTORNEY AT HELLER EHRMAN WHITE & MCAULIFFE IN SAN FRANCISCO AMONG OTHER THINGS MUTUAL FUNDS WANT TO GUARD AGAINST AN EMPLOYEE FRONT RUNNING OR BUYING A STOCK BEFORE THE FUND BEGINS BUYING MR ADAMS SAID THE HEAVY BUYING POWER OF A MUTUAL FUND COULD BOOST THE PRICE OF A STOCK GIVING AN ARTIFICIAL GAIN TO THE FRONTRUNNING BUYER CODES OF CONDUCT ARE DESIGNED TO PREVENT SUCH ABUSES INVESCO STRESSED THAT MR KAWESKE DIDN'T ENGAGE IN FRONTRUNNING OR OTHER ILLEGAL TRADING IT FIRED HIM FOR VIOLATING THE REPORTING PROVISIONS OF THE CODE OF CONDUCT IT SAID MR ZESCHIN OBSERVED THAT MR KAWESKE SIMPLY HASN'T COMPLIED BY INVESCO'S RULES IN A SUBSTANTIAL WAY WHY WOULD INVESCO FIRE A TOPLEVEL FUND MANAGER FOR COMPLIANCE PROBLEMS ALONE THE PRINCIPAL REASON IS THAT WE TRY TO ESTABLISH AN ENVIRONMENT OF TRUST AND COMPLIANCE WITH INVESCO'S RULES MR ZESCHIN SAID IN THE SITUATION WITH KAWESKE WE FOUND THAT THE EXTENT OF NONCOMPLIANCE EVEN THOUGH IT DIDN'T AFFECT INVESTORS IN THE FUNDS WAS SUCH THAT WE DIDN'T THINK HE COULD CARRY ON HIS RESPONSIBILITIES MR KAWESKE SAID THAT IN ONLY ONE INSTANCE AMONG 20 PUBLIC STOCK PURCHASES HAD HE FAILED TO GET WRITTEN PRIOR APPROVAL HE ADDED THAT HE HAD STANDING INSTRUCTIONS TO CHARLES SCHWAB CORP HIS BROKER TO SEND CONFIRMATIONS OF HIS TRADES TO INVESCO AND HE SUSPECTED THAT INVESCO HAD LOST SOME OF THOSE INVESCO WHICH MANAGES 10 BILLION IN MUTUAL FUNDS IS OWNED BY UNITED KINGDOMBASED INVESCO PLC AN INVESTMENT MANAGER WITH 64 BILLION IN ASSETS IN THE PAST TWO YEARS TWO OTHER HIGHLY REGARDED FUND MANAGERS LEFT INVESCO IN ADDITION JOHN BUTLER FORMER PRESIDENT OF THE INVESCO FUNDS RETIRED IN LATE 1993 MR KAWESKE SAID HE HADN'T BEEN ON THE BEST OF RELATIONS WITH INVESCO RECENTLY I'VE BEEN A LITTLE UNHAPPY WITH THE WAY THINGS WERE GOING HE CITED A GROWING BUREAUCRACY THAT INTERFERED WITH SOME OF HIS INVESTMENT DECISIONS AND PERSONALITY PROBLEMS AFTER MR BUTLER'S DEPARTURE INVESCO'S MR ZESCHIN REPLIED THAT MR KAWESKE'S DEALINGS WITH MR BUTLER AND DAN HESSER HIS SUCCESSOR WOULD HAVE BEEN LIMITED BECAUSE THEY WERE ON THE MARKETING SIDE OF THE BUSINESS MR KAWESKE ALSO SAID HE WAS ASKED BY INVESCO MANAGEMENT IF HE WERE PLANNING TO SET UP ANOTHER FUND GROUP TO WHICH HE REPLIED THE THOUGHT HAD ENTERED MY MIND MR ZESCHIN SAID THAT GIVEN THE HEAVY DEMAND FOR FUND MANAGERS WITH STRONG RECORDS IT WOULD NOT BE UNUSUAL TO HEAR THAT A MANAGER SUCH AS MR KAWESKE WAS CONSIDERING ALTERNATIVE JOBS WHEN ASKED ABOUT HIS FUTURE PLANS MR KAWESKE SAID I HAVE A NUMBER OF OPPORTUNITIES AND OPTIONS ONE OPTION IS TAKING OVER BECOMING CHAIRMAN OF THE BOARD OF A BIOTECHNOLOGY COMPANY ANOTHER OPTION IS TO GET MORE INVOLVED WITH VENTURE CAPITAL THERE ARE TIMES WHEN PEOPLE SUFFER INJUSTICES MR KAWESKE ADDED 9401060172 940106 ITT'S ANTILOCK BRAKE SALES UP NEW YORK ITT CORP SAID ITS AUTOMOTIVE UNIT SOLD MORE THAN 1 BILLION IN ANTILOCK BRAKE SYSTEMS IN 1993 REPRESENTING A GAIN OF ABOUT 10 FROM 1992 SALES THE COMPANY WHICH ALSO HAS INTERESTS IN HOTELS FINANCIAL SERVICES AND INSURANCE SAID THE AUTOMOTIVE UNIT NOW HAS ABOUT 75 BILLION IN SALES BOOKED THROUGH 1998 FOR ITS ANTILOCK BRAKE AND TRACTION CONTROL SYSTEMS 9401060171 940106 FINANCING BUSINESS AGNICOEAGLE MINES LTD AGNICOEAGLE MINES LTD TORONTO SAID IT PLANS TO ISSUE AS MUCH AS 98 MILLION OF CONVERTIBLE 10YEAR NOTES IN BOTH CANADA AND THE US THE GOLD MINING CONCERN SAID IT WILL USE THE EXPECTED NET PROCEEDS OF 80 MILLION TO FINANCE DEVELOPMENT AND EXPLORATION PROJECTS AND FOR GENERAL CORPORATE PURPOSES THE ISSUE WILL BE UNDERWRITTEN BY A GROUP OF INVESTMENT DEALERS HEADED BY MERRILL LYNCH & CO TERMS OF THE ISSUE WHICH IS EXPECTED TO CLOSE BY THE END OF THE MONTH HAVEN'T BEEN DETERMINED 9401060170 940106 WHO'S NEWS CROWN AMERICAN REALTY TRUST CROWN AMERICAN REALTY TRUST JOHNSTOWN PA FRANK T LAZORCHAK 46 YEARS OLD EXECUTIVE VICE PRESIDENT OF ASSET MANAGEMENT AT THIS REAL ESTATE INVESTMENT TRUST RESIGNED EFFECTIVE DEC 31 FOR PERSONAL REASONS CROWN AMERICAN SAID IT IS ACTIVELY SEEKING A SUCCESSOR TO MR LAZORCHAK IN THE INTERIM THE COMPANY'S PRESIDENT MARK PASQUERILLA WILL ASSUME THE ASSETMANAGEMENT RESPONSIBILITIES 9401060169 940106 INTERNATIONAL MITSUKOSHI TO CUT PAYROLL 10 TOKYO MITSUKOSHI LTD ONE OF JAPAN'S MAJOR DEPARTMENTSTORE CHAINS IS PLANNING TO CUT ITS 12600PERSON LABOR FORCE BY 10 BY 1997 A SPOKESMAN SAID THE COMPANY PLANS TO SHED WORKERS THROUGH ATTRITION AND BY ELIMINATING THE HIRING OF NEW GRADUATES THE SPOKESMAN SAID THE LABOR ADJUSTMENT IS IN LINE WITH THE COMPANY'S LONGTERM MANAGEMENT PLAN AND DOESN'T REFLECT EROSION OF THE COMPANY'S RESULTS 9401060168 940106 WHO'S NEWS CLINTRIALS INC CLINTRIALS INC NASHVILLE TENN PAUL J OTTAVIANO 47 YEARS OLD WAS PROMOTED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT OF US OPERATIONS FOR THIS PHARMACEUTICAL AND BIOTECHNOLOGY CLINICAL RESEARCH CONCERN MR OTTAVIANO'S PREVIOUS POST WAS AS EXECUTIVE VICE PRESIDENT OF OPERATIONS FOR THE COMPANY'S NORTH CAROLINA LOCATION 9401060167 940106 WHO'S NEWS ESCAGENTICS CORP ESCAGENTICS CORP SAN CARLOS CALIF RICHARD E MOSER A PRUDENTIAL SECURITIES INC EXECUTIVE WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS BIOTECHNOLOGY COMPANY MR MOSER 52 YEARS OLD WAS PREVIOUSLY A SENIOR VICE PRESIDENT OF THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT AND PRESIDENT OF R&D FUNDING CORP AN AFFILIATE OF PRUDENTIAL SECURITIES AS PRESIDENT AND CHIEF EXECUTIVE AT ESCAGENTICS MR MOSER SUCCEEDS RAYMOND J MOSHY 68 WHO RETAINS HIS POSITION AS CHAIRMAN AS A DIRECTOR MR MOSER SUCCEEDS DOUGLAS J MACMASTER JR 62 WHO RETAINS HIS POST AS CHAIRMAN OF THE PHYTOPHARMACEUTICALS INC UNIT 9401060166 940106 WHO'S NEWS APPLIED MATERIALS INC APPLIED MATERIALS INC SANTA CLARA CALIF JAMES W BAGLEY 54YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE NEW POST OF VICE CHAIRMAN HE REMAINS CHIEF OPERATING OFFICER AS PRESIDENT HE WILL BE SUCCEEDED BY DAN MAYDAN 59 WHO WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT MESSRS BAGLEY AND MAYDAN JOIN THIS SEMICONDUCTOR SUPPLIER'S NEWLY FORMED THREEMEMBER OFFICE OF THE CHIEF EXECUTIVE THE OTHER MEMBER IS JAMES C MORGAN 55 CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9401060165 940106 WHO'S NEWS POLICY MANAGEMENT SYSTEMS CORP POLICY MANAGEMENT SYSTEMS CORP COLUMBIA SC TIMOTHY V WILLIAMS 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS SOFTWARE AND INFORMATIONSERVICES PROVIDER MR WILLIAMS WAS THE CHIEF FINANCIAL OFFICER AND EXECUTIVE VICE PRESIDENT FOR CORPORATE SERVICES OF HOLIDAY INN WORLDWIDE LAST SPRING POLICY MANAGEMENT CAME UNDER SCRUTINY BY THE SECURITIES AND EXCHANGE COMMISSION FOR ITS FINANCIAL REPORTING AND ACCOUNTING PROCEDURES AN INTERNAL AUDIT BY ACCOUNTING FIRM COOPERS & LYBRAND IS EXPECTED TO BE RELEASED EARLY THIS YEAR 9401060164 940106 MET LIFE GEORGIA REACH SETTLEMENT OVER SALES TACTICS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL GEORGIA HAS BECOME THE FIRST STATE TO REACH A SETTLEMENT WITH METROPOLITAN LIFE INSURANCE CO OVER ALLEGEDLY MISLEADING SALES TACTICS MET AGREED TO PAY A 250000 FINE TO THE GEORGIA INSURANCE DEPARTMENT WITHOUT ADMITTING OR DENYING ANY WRONGDOING HOWEVER THE COMPANY AGREED TO REIMBURSE ANY AGGRIEVED CUSTOMERS AND TO COOPERATE WITH GEORGIA INVESTIGATORS IN PROBES AGAINST INDIVIDUAL LIFEINSURANCE AGENTS THE GEORGIA ACTION IS SEPARATE FROM A JOINT INVESTIGATION BEING CONDUCTED BY 13 OTHER STATES LIKE GEORGIA THE OTHER STATES ARE LOOKING INTO ALLEGATIONS THAT MET TRICKED CUSTOMERS INTO BUYING LIFE INSURANCE BY PROMOTING IT AS A RETIREMENT ACCOUNT THE FINE WAS THE BIGGEST EVER IMPOSED BY GEORGIA AGAINST AN INSURANCE COMPANY AND IS LARGE BY THE STANDARDS OF ANY STATE INSURANCE COMPANIES WILL BE HELD ACCOUNTABLE WHEN THEY TAKE ADVANTAGE OF THE PUBLIC'S TRUST SAID TIM RYLES GEORGIA STATE INSURANCE COMMISSIONER INSURANCE EXPERTS SAY IT IS POSSIBLE THAT THE OTHER STATES COULD COME DOWN HARDER ON THE COMPANY THAN GEORGIA ALTHOUGH THEY BELIEVE IT IS UNLIKELY GIVEN THAT MET HAS ALREADY TAKEN STEPS TO COOPERATE WITH REGULATORS THEY ADD THAT INSURANCE COMMISSIONERS ALSO BELIEVE THE NEGATIVE PUBLICITY SURROUNDING A STATE DISCIPLINARY ACTION IS ENOUGH TO CHASTEN A COMPANY INSURANCE COMPANIES ARE AS CONCERNED ABOUT THE ADVERSE PUBLICITY AS THE FINE SAID DONALD GABAY AN INSURANCE ATTORNEY WITH STROOCK STROOCK & LAVAN IN NEW YORK MET SAID IT WAS PLEASED WITH THE GEORGIA SETTLEMENT WE WILL CONTINUE WORKING WITH REGULATORS IN OTHER AFFECTED STATES TO ADDRESS ANY OUTSTANDING ISSUES SAID A SPOKESMAN SEPARATELY THE NEW YORK INSURANCE DEPARTMENT WARNED INSURERS TO EXAMINE THEIR MARKETING PRACTICES AND OBTAIN MORE CONTROL OVER THEIR SALES FORCE THE DEPARTMENT WHICH IS INVESTIGATING THE SALES PRACTICES OF SIX OF THE NATION'S 20 BIGGEST LIFE INSURERS SAID IT WILL BEGIN TO INTENSIFY ITS AUDITS OF INSURANCE COMPANIES IN ORDER TO ROOT OUT UNLAWFUL OR IMPROPER ACTIVITIES THE DEPARTMENT DECLINED TO NAME THE SIX COMPANIES ADDING IT MAY INVESTIGATE MORE INSURERS 9401060163 940106 WHO'S NEWS CEDAR FAIR MANAGEMENT CO CEDAR FAIR MANAGEMENT CO SANDUSKY OHIO DONALD H MESSINGER 50 YEARS OLD JAMES L MIEARS 58 AND THOMAS A TRACY 61 WERE NAMED TO THE COMPANY'S BOARD FOR 1994 THE COMPANY IS THE MANAGING GENERAL PARTNER OF CEDAR FAIR LP AN AMUSEMENTPARK COMPANY RICHARD L KINZEL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOTH CONCERNS AND MARY ANN JORGENSON A PARTNER IN LAW FIRM SQUIRE SANDERS & DEMPSEY IN CLEVELAND BOTH RETAINED THEIR POSITIONS ON THE BOARD COMPANY OFFICIALS SAID SHAREHOLDERS DECIDED TO REDUCE THE SIZE OF THE BOARD TO FIVE FROM NINE MEMBERS 9401060162 940106 TEXAS INSTRUMENTS ACCORD DALLAS TEXAS INSTRUMENTS INC AND SAMSUNG ELECTRONICS CO SAID THEY REACHED A DEFINITIVE AGREEMENT TO JOINTLY OWN AND OPERATE TI'S COMPUTER CHIP PLANT IN PORTO PORTUGAL UNDER THE DEAL FIRST ANNOUNCED IN LATE 1992 THE TWO COMPANIES WILL INVEST MORE THAN 50 MILLION IN THE FACILITY TI AN ELECTRONICS COMPANY WILL REMAIN THE MAJORITY OWNER THOUGH SAMSUNG BASED IN SEOUL SOUTH KOREA HAS AN OPTION TO INCREASE ITS INVESTMENT IN THE PLANT TO 50 OVER THE NEXT THREE YEARS THE PORTUGAL PLANT WILL OPERATE SEPARATE MANUFACTURING LINES TO ASSEMBLE AND TEST EACH COMPANY'S INTEGRATED CIRCUITS 9401060161 940106 SPORTS INSIDE BASEBALL OWNERS GRAPPLE WITH REVENUE SHARING BY JOHN HELYAR STAFF REPORTER OF THE WALL STREET JOURNAL WITH BASEBALL INCREASINGLY BECOMING A SPORT OF THE HAVES AND THE HAVENOTS OWNERS ARE TAKING ANOTHER SWING AT THE THORNY ISSUE OF REVENUESHARING AT A MEETING IN CHICAGO TODAY REPRESENTATIVES OF MAJOR LEAGUE BASEBALL'S 28 TEAMS WILL TRY TO AGREE ON A FORMULA THAT HAS LONG ELUDED THEM HOW TO LEVEL THE FINANCIAL PLAYING FIELD BETWEEN TEAMS IN BIG CITIES LIKE NEW YORK AND LOS ANGELES AND THOSE IN SMALLER ONES LIKE MONTREAL AND SAN DIEGO THE PRESSURE FOR AN AGREEMENT HAS INCREASED IN RECENT YEARS AS THE REVENUE GAP HAS WIDENED BIGMARKET TEAMS NOW GROSS 100 MILLION A YEAR WHILE SMALLMARKET TEAMS TAKE IN ONLY ABOUT 40 MILLION YET THEY'RE ALL TIED TO THE SAME SALARY SCALE UNDER WHICH THE AVERAGE PLAYER'S SALARY HAS ABOUT DOUBLED TO 1060000 IN THE PAST FIVE YEARS TOP FREE AGENTS LIKE WILL CLARK AND RAFAEL PALMEIRO HAVE NEGOTIATED 6MILLIONAYEAR CONTRACTS THIS WINTER ABOUT HALF OF THE TEAMS WERE UNPROFITABLE IN 1993 AND THE NUMBER OF TEAMS WITH LOSSES IS EXPECTED TO INCREASE IN 1994 AS BASEBALL'S NETWORK TV REVENUES DROP SHARPLY BASEBALL'S CONTRACTS WITH CBS AND ESPN WHICH PAID EACH TEAM 14 MILLION A YEAR EXPIRED AFTER 1993 THE NEW DEALS WITH ESPN ABC AND NBC MAY YIELD ONLY 7 MILLION AND PERHAPS CONSIDERABLY LESS IN BASEBALL'S JOINT VENTURE WITH ABC AND NBC ITS REVENUE IS TIED TO TV AD SALES WHICH ARE OFF TO A SPUTTERING START REACHING A REVENUESHARING AGREEMENT IS ALSO CRUCIAL TO GET NEGOTIATIONS MOVING ON A NEW LABOR CONTRACT WITH PLAYERS THE OLD ONE EXPIRED DEC 31 AND THE TWO SIDES HAVEN'T HELD TALKS ON A NEW DEAL IN NEARLY A YEAR THEY HAVEN'T EVEN YET COME TO TERMS ON A SIMPLER MATTER A NEW THREEDIVISION SYSTEM WITH AN EXTRA ROUND OF PLAYOFFS RICHARD RAVITCH THE OWNERS' CHIEF NEGOTIATOR WANTS TO PRESS THE UNION FOR A SALARY CAP BUT HE FIRST NEEDS TO SECURE A REVENUESHARING AGREEMENT AMONG THE OWNERS THAT'S BECAUSE ANY SALARY CAP WILL ENTAIL A SALARY FLOOR AND LOWBUDGET TEAMS WANT THE ASSURANCE OF A SUBSIDY TO MEET THE MINIMUM REQUIREMENT THEY ALSO WANT TO KEEP BIGMARKET TEAMS FROM REAPING WINDFALL PROFITS IF THEIR PAYROLLS ARE REDUCED BY THE CAP SO UNDER REVENUESHARING THE RICHEST CLUBS WOULD ESSENTIALLY TRANSFER FUNDS TO THE POOREST THE MINNESOTA TWINS IS ONE TEAM FEELING THE PINCH LETTING TOPFLIGHT CATCHER BRIAN HARPER GO BECAUSE IT COULDN'T AFFORD HIS SALARY AND KEEP ITS PAYROLL AT AROUND 27 MILLION NETWORK TV IS SUCH A HUGE PERCENTAGE OF OUR TOTAL INCOME COMPARED TO A MAJORMARKET TEAM SAYS JERRY BELL THE TWINS PRESIDENT THE TWINS HAVE BEEN IN THE FOREFRONT OF SMALLMARKET TEAMS PRESSING FOR REVENUESHARING WHILE NEW YORK YANKEES GENERAL PARTNER GEORGE STEINBRENNER HAS BEEN THE MOST VOCAL OF THE BIGMARKET OPPONENTS BASEBALL HAS MORE SMALL OR MEDIUMMARKET TEAMS THAN WELLHEELED ONES BUT REVENUESHARING NEEDS 75 APPROVAL 21 OF THE 28 TEAMS WHEN THE OWNERS LAST MET ON THE ISSUE IN AUGUST IN KOHLER WIS MR RAVITCH WASN'T ABLE TO GET THAT PLURALITY THE OWNERS SPLIT INTO TWO CAUCUSES 10 TEAMS IDENTIFIED WITH BIGMARKET INTERESTS AND 18 ON THE OTHER SIDE AFTER VIRTUALLY ROUNDTHECLOCK TALKS FOR TWO DAYS THE SIDES WERE ABOUT 11 MILLION APART AND THE SUMMIT BROKE UP THE SMALLMARKET CLUBS SOUGHT 65 MILLION THE BIGMARKET CLUBS OFFERED 54 MILLION A NEGOTIATING COMMITTEE WAS FORMED WITH REPRESENTATIVES FROM BOTH CAMPS IT HAS SINCE MET SEVERAL TIMES WITH BOSTON RED SOX GENERAL PARTNER JOHN HARRINGTON DOING MUCH OF THE TALKING FOR BIGMARKET OWNERS AND THE TWINS' MR BELL AND SEATTLE MARINERS CHAIRMAN JOHN ELLIS TAKING LEAD ROLES AMONG THE SMALLMARKET CLUBS RECENTLY THE TWO SIDES HAVE GOTTEN CLOSER ON SOME ISSUES SUCH AS SETTING A LIMIT ON HOW LONG RICH CLUBS WOULD SUBSIDIZE THE POOREST ONES BUT AN AGREEMENT WILL STILL BE ELUSIVE AT THE CHICAGO MEETING WHICH COULD SPILL OVER INTO A SECOND DAY THE PROBLEM ISN'T JUST THE AMOUNT OF MONEY SAYS AN OWNER IT'S PEOPLE'S DIFFERENT MOTIVATIONS THE NEW YORK METS' OWNERS FOR INSTANCE ARE CONSIDERED DOVES ON LABOR ISSUES BY BOTTLING UP REVENUESHARING THEY CAN KEEP MR RAVITCH FROM GETTING OUT OF THE GATE AND INTO A CONFRONTATIONAL STANCE WITH THE UNION IN ADDITION SOME BIGMARKET TEAMS RESIST REVENUESHARING MAINLY BECAUSE IT WOULD ERODE THEIR COMPETITIVE ADVANTAGE THE TORONTO BLUE JAYS WHO HAVE WON THE LAST TWO WORLD SERIES AND CARRY BASEBALL'S HIGHEST PAYROLL AVERAGING 17 MILLION A PLAYER ARE SAID TO FIT THAT CATEGORY TODAY'S MEETING IS THE PRODUCT OF A REBELLION BY THE NATIONAL LEAGUE'S SMALLMARKET TEAMS FIVE OF THEM MONTREAL SAN DIEGO PITTSBURGH HOUSTON AND FLORIDA REFUSED TO SIGN THE NATIONAL LEAGUE BROADCAST AGREEMENT FOR 1994 THAT PACT WHICH HAD BEEN RENEWED ROUTINELY FOR YEARS ESTABLISHES TEAMS' BROADCAST RIGHTS FROM ONE ANOTHER'S BALLPARKS WITHOUT IT A TEAM CAN'T TELEVISE ROAD GAMES EXCEPT BY NEGOTIATING TERMS WITH EACH TEAM THE SMALLMARKET OWNERS WANT TO FORCE A MORE GENEROUS SPLIT OF LOCAL TV REVENUE WHICH ACCOUNTS FOR MUCH OF THE DISPARITY OF FORTUNES AMONG TEAMS THE METS AND LOS ANGELES DODGERS HAVE THE HIGHEST LOCAL BROADCAST PACKAGES IN THE LEAGUE ESTIMATED AT 20 MILLION TO 25 MILLION WHILE THE PITTSBURGH PIRATES ARE AT THE LOW END WITH 6 MILLION THE TEAM THAT PLAYS THE TEAM WITH THE TV RIGHTS DEAL GETS 25 OF THE REVENUE FOR GAMES ON CABLE TV BUT NOTHING FOR OVERTHEAIR BROADCASTS WE'RE PART OF THE ACT PEOPLE COME TO SEE BOTH THE DODGERS AND THE PIRATES SAYS DOUGLAS DANFORTH THE PIRATES' MANAGING PARTNER WE THINK WE DESERVE A BETTER SHARE OF THE REVENUE THE STANDOFF MEANS NATIONAL LEAGUE TEAMS AND THEIR TV RIGHTSHOLDERS CAN'T PLAN THEIR 1994 BROADCAST SCHEDULES OR SECURE ADVERTISING COMMITMENTS NATIONAL LEAGUE PRESIDENT BILL WHITE SCHEDULED A MEETING OF HIS OWNERS IN MIDDECEMBER TO TRY TO RESOLVE THE BROADCAST AGREEMENT AMONG OTHER ITEMS BUT BUD SELIG BASEBALL'S DE FACTO COMMISSIONER AND THE MILWAUKEE BREWERS' OWNER WANTED THE MATTER ADDRESSED IN THE CONTEXT OF REVENUESHARING HE PREVAILED ON THE LEAGUE TO SCRAP ITS MEETING AND SET UP TODAY'S PARLEY 9401060160 940106 WHO'S NEWS ELECTRONIC ARTS INC ELECTRONIC ARTS INC SAN MATEO CALIF DANIEL H CASE III 36 YEARS OLD WAS APPOINTED TO THIS ENTERTAINMENT AND EDUCATION SOFTWARE CONCERN'S BOARD HE FILLS A SEAT LEFT VACANT BY BROOKE BYERS 48 WHO DIDN'T RUN FOR REELECTION 9401060159 940106 ECONOMY BOOM IS FADING IN REFINANCINGS ON MORTGAGES WEEKLY INDEX OF ACTIVITY REGISTERS A 65 DROP FROM SEPTEMBER PEAK BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL THE BOOM IN MORTGAGE REFINANCINGS WHICH SOARED TO RECORD LEVELS LAST YEAR WHEN INTEREST RATES PLUNGED TO THEIR LOWEST POINT IN A QUARTER OF A CENTURY HAS SLOWED SHARPLY A WEEKLY INDEX OF REFINANCING ACTIVITY FELL TO 604 FOR THE LAST WEEK OF 1993 TUMBLING 65 FROM ITS PEAK OF 17273 IN SEPTEMBER IT WAS THE LOWEST LEVEL SINCE JANUARY 1993 ACCORDING TO THE MORTGAGE BANKERS ASSOCIATION OF AMERICA WHICH PUBLISHES THE INDEX AND WILL RELEASE THE FIGURES TODAY A RATE OF 100 IS CONSIDERED NORMAL MOREOVER REFINANCING APPLICATIONS ARE NOW RUNNING AT 45 OF ALL MORTGAGE ORIGINATIONS DOWN FROM ABOUT 70 APPLICATIONS FOR LOANS ON NEWLY PURCHASED HOMES MAKE UP THE REMAINDER OF ORIGINATIONS WE'RE OVER THE EDGE IN SEEING A SHARP CONTRACTION IN REFINANCING SAID JONATHAN E GRAY AN ANALYST FOR SANFORD C BERNSTEIN & CO MR GRAY ESTIMATES THAT REFINANCINGS WHICH TOTALED 533 BILLION LAST YEAR WILL DROP BY 50 TO 266 BILLION THIS YEAR ASSUMING INTEREST RATES STAY FLAT MR GRAY SAID HE EXPECTS ANOTHER DROP OF 60 IN 1995 SOME OF THE DECLINE IN REFINANCINGS IS DUE TO THE TRADITIONAL YEAREND HOLIDAY SLOWDOWN SAID WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION EVEN THOUGH MOST PEOPLE WHO ARE THINKING ABOUT REFINANCING HAVE ALREADY DONE SO HE SAID THAT THE RECENT UPTICK IN INTEREST RATES STILL LOW BY HISTORICAL STANDARDS WILL ENTICE MANY OF THE REMAINING HOMEOWNERS INTO THE MARKET NEVERTHELESS ANALYSTS EXPECT THAT 1994 WILL RANK AS THE THIRDHIGHEST YEAR ON RECORD FOR REFINANCINGS BECAUSE MANY HOMEOWNERS ARE STILL SCRAMBLING TO LOCK IN RATES THAT ARE HOVERING AT THEIR LOWEST LEVELS IN TWO DECADES THIS WEEK THE AVERAGE RATE SHOT UP TO 735 FROM 724 ON A CONVENTIONAL 30YEAR MORTGAGE ACCORDING TO A PRELIMINARY SURVEY BY HSH ASSOCIATES A BUTLER NJ MORTGAGE PUBLISHER STILL THOSE RATES WOULD BE ATTRACTIVE TO THE 15 TO 20 OF HOMEOWNERS THAT ARE STILL CHAINED TO INTEREST RATES OF 95 OR HIGHER MR GRAY SAID REFINANCING ACTIVITY IS STILL WELL ABOVE THE HISTORIC AVERAGE SAID MR LASKO OF THE MORTGAGE BANKERS ASSOCIATION ADDING PEOPLE ARE STILL TAKING ADVANTAGE OF LOW RATES ANALYSTS EXPECT RATES TO STAY RELATIVELY STABLE FOR THE NEXT YEAR PERHAPS INCHING UP TO 8 RATES FELL AS LOW AS 683 IN OCTOBER BEFORE RISING TO 740 IN NOVEMBER THE EARLIER RATES THE LOWEST IN MEMORY FOR MANY HOMEOWNERS SET OFF A FURY OF REFINANCING ACTIVITY WITH SOME PEOPLE COMING BACK TO THEIR BROKERS TWO OR THREE TIMES REFINANCING BOOMS ROLLED IN LIKE WAVES LAST YEAR ACTIVITY TOOK OFF EARLY IN THE YEAR AND SOARED TO 14 TIMES THE NORMAL VOLUME BY MARCH REACHING A RECORD 17 TIMES BETTER THAN NORMAL LEVEL IN SEPTEMBER THIS REFINANCING BOOM ABSOLUTELY DWARFS ANYTHING THAT HAS EVER HAPPENED BEFORE IN THE LARGEST FINANCIAL MARKET IN THE WORLD SAID MR GRAY THE MORTGAGE BANKERS' INDEX TRACKS THE VOLUME OF HOMEOWNERS APPLYING TO REFINANCE FROM A BASE OF 100 WHICH IS CONSIDERED NORMAL ANYTHING OVER 700 IS CONSIDERED A BOOM WITH SUCH A PRECIPITOUS FALL ANALYSTS SAY A PRICE WAR AMONG MORTGAGE BANKERS IS LIKELY SUCH A FIREFIGHT BROKE OUT BETWEEN 1986 AND 1987 AND PUT AN ESTIMATED ONETHIRD OF MORTGAGE BROKERS OUT OF BUSINESS IT'S ALREADY BECOME EXTREMELY COMPETITIVE SAID THOMAS R HENDRICKSON EXECUTIVE VICE PRESIDENT AT PORTLAND MORTGAGE CO HE SAID THAT IN PORTLAND MORE THAN 100 NEW LENDERS HAVE HIT TOWN IN THE LAST THREE YEARS IN A WAY IT'S A TIME BOMB FOR THE WHOLE BUSINESS THERE'S JUST AN AWFUL LOT OF PEOPLE WHO DON'T KNOW WHAT THEY'RE DOING NOW THE SWELL OF REFINANCING ANALYSTS SAY HAS HELPED THE AVERAGE HOMEOWNER SHAVE 240 OFF OF MONTHLY PAYMENTS EASING PERSONAL DEBT AND CONTRIBUTING TO A SPURT IN CONSUMER CONFIDENCE AND SPENDING LENDERS REPORT THAT INCREASINGLY THEY ARE DEALING WITH PEOPLE REFINANCING FOR THE FIRST TIME HOMEOWNERS THAT HAVE HELD OFF UNTIL NOW IN THE HOPE THAT RATES WOULD DROP EVEN LOWER LENDERS ALSO SAY THEY ARE SEEING MORE PEOPLE BUYING HOMES WHILE NEW MORTGAGES INCREASINGLY OUTPACE REFINANCED MORTGAGES THE TOTAL VOLUME HAS FALLEN SIGNIFICANTLY THE MORTGAGE BANKERS ASSOCIATION'S SEASONALLY ADJUSTED PURCHASE INDEX OF NEW MORTGAGES DROPPED 23 TO 1412 IN THE LAST WEEK OF 1993 FROM THE SEPTEMBER PEAK OF 1821 ANYTHING HIGHER THAN 150 IS CONSIDERED A BOOM MR LASKO SAYS HE IS PUZZLED BY THE DROP AND EXPECTS A SURGE IN HOME BUYING THIS QUARTER I'M LEERY OF USING THIS INDEX TO SAY THAT THE BOOM IN HOME SALES IS OVER HE SAID IT ISN'T 9401060158 940106 WHO'S NEWS AURTEX INC AURTEX INC SAN FRANCISCO TREVOR S SCHULTZ 50 YEARS OLD WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS GOLDEXPLORATION CONCERN MR SCHULTZ WAS GROUP GENERAL MANAGER AND SENIOR VICE PRESIDENT OF A BROKEN HILL PROPRIETARY CO MINERALS UNIT AS PRESIDENT AND CEO HE SUCCEEDS ALLAN KLINE 73 WHO REMAINS CHAIRMAN MR SCHULTZ'S APPOINTMENT AS DIRECTOR EXPANDS THE BOARD TO SIX MEMBERS 9401060157 940106 INTERNATIONAL FLAVORS IN CHINA NEW YORK INTERNATIONAL FLAVORS & FRAGRANCES INC SAID IT FORMED A 20 MILLION VENTURE WITH A CHINESE FRAGRANCEINGREDIENT MANUFACTURER INTERNATIONAL FLAVORS & FRAGRANCES SAID IT OWNS 80 OF THE VENTURE WITH HANGZHOU XIN'ANJIANG PERFUMERY LOCATED IN ZHEJIANG PROVINCE 200 MILES SOUTHWEST OF SHANGHAI THE VENTURE CALLED IFF HANGZHOU WILL MAKE INGREDIENTS USED IN FRAGRANCES FOR PERFUME COSMETICS SOAP AND HOUSEHOLD PRODUCTS THE VENTURE IS INTERNATIONAL FLAVORS' THIRD IN CHINA 9401060156 940106 UKRAINE TAKES WARHEADS FROM NUCLEAR MISSILES WASHINGTON AS A GOODWILL GESTURE TOWARD THE US TECHNICIANS IN UKRAINE HAVE BEGUN REMOVING THE NUCLEAR WARHEADS FROM THE SS24 THE COUNTRY'S MOST MODERN AND POTENT MISSILE THE MOVE WHICH HAS BEEN VERIFIED BY US SATELLITES IS A BEGINNING STEP TOWARD UKRAINE'S TREATY OBLIGATION TO DISMANTLE ITS MISSILES DESTROY THE SILOS AND SEND THE WARHEADS BACK TO RUSSIA WE REGARD THIS AS VERY GOOD NEWS A US OFFICIAL SAID ADDING THAT THE REMOVAL WAS BEING CARRIED OUT JOINTLY BY RUSSIAN AND UKRAINIAN CREWS THE ACTION FOLLOWED A CAMPAIGN BY US EXPERTS TO CONVINCE UKRAINIAN LEADERS THAT THEY HAVE NEITHER THE NEED NOR THE RESOURCES TO MAINTAIN A NUCLEAR ARSENAL THEY POINTED OUT THAT THE MISSILES WHICH CARRY SIX WARHEADS HAVE A MINIMUM RANGE OF AROUND 1700 MILES WHICH MAKES THEM EFFECTIVE FOR HITTING WASHINGTON BUT VERY DIFFICULT TO AIM AT MOSCOW WHICH IS 1100 MILES FROM UKRAINE'S MISSILE FIELDS THE WARHEADS ARE LIKELY TO REMAIN IN UKRAINE UNDER SEPARATE STORAGE FROM THE MISSILES UNTIL THE US NEGOTIATES A CONTRACT WITH RUSSIA TO BUY THE ENRICHED URANIUM FROM THE WARHEADS AND PAY THE PROCEEDS TO UKRAINE 9401060155 940106 NORD RESOURCES EXPANSION DAYTON OHIO NORD RESOURCES CORP SAID IT PLANS A 72 MILLION EXPANSION OF ITS WEST AFRICAN MINING OPERATION OVER THE NEXT FIVE YEARS THE OPERATION IS RUN BY SIERRA RUTILE LTD A COMPANY 50 OWNED BY CONSOLIDATED RUTILE LTD OF AUSTRALIA NORD SAID FINANCING FOR THE EXPANSION WILL COME FROM THE BALANCE OF A 48 MILLION DEVELOPMENT BANKS' LOAN FACILITY AND CASH FLOW GENERATED BY SIERRA RUTILE NORD PRODUCES NATURAL RUTILE A PREMIUM TITANIUM DIOXIDE MINERAL KAOLIN AND PERLITE AND OWNS A MAJOR INTEREST IN NORD PACIFIC LTD AN EXPLORATION COMPANY 9401060154 940106 WHO'S NEWS MCDONALD'S CORP MCDONALD'S CORP OAK BROOK ILL HENRY E GONZALEZ JR 43 YEARS OLD WAS NAMED CORPORATE VICE PRESIDENTOPERATIONS IN CHARGE OF ALL CORPORATE OPERATIONS AND TRAINING DEPARTMENTS IN THE US MR GONZALEZ THE FASTFOOD CHAIN'S ONLY CORPORATE VICE PRESIDENT AND ITS HIGHESTRANKING HISPANIC WILL BECOME A MEMBER OF MCDONALD'S SENIOR MANAGEMENT TEAM A 20YEAR COMPANY VETERAN HE HAS BEEN A REGIONAL VICE PRESIDENT OVERSEEING RESTAURANTS IN THE HARTFORD CONN REGION IN THAT CAPACITY HE LED MCDONALD'S CURRENT TEST OF HOME DELIVERY 9401060153 940106 WHO'S NEWS DIED FRANCIS E FERGUSON 72 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHWESTERN MUTUAL LIFE INSURANCE CO TUESDAY IN PHOENIX AFTER A LONG RESPIRATORY ILLNESS 9401060152 940106 WHO'S NEWS UNIVERSAL SEISMIC ASSOCIATES INC UNIVERSAL SEISMIC ASSOCIATES INC SUGAR LAND TEXAS RONALD L ENGLAND CONTROLLER WAS NAMED CHIEF FINANCIAL OFFICER OF THIS COMPANY WHICH PROVIDES SEISMIC DATA TO THE ENERGY INDUSTRY MR ENGLAND 36 YEARS OLD SUCCEEDS CALVIN G COBB 38 WHO SERVED AS INTERIM CHIEF FINANCIAL OFFICER AND WILL REMAIN A DIRECTOR THE COMPANY ALSO ELECTED TWO NEW OUTSIDE DIRECTORS EXPANDING THE BOARD TO FIVE MEMBERS THE NEW DIRECTORS ARE MATTHEW R BOB 37 CHIEF GEOPHYSICIST FOR PITTS GROUP AND ALFRED D LASAINE 55 AN INDEPENDENT ENERGY AND GEOPHYSICAL CONSULTANT 9401060151 940106 TECHNOLOGY MAGIC CAP SYSTEM IS EXPECTED TO GIVE USERS OF HANDHELD PCS AN EASIER TIME BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE WORLD'S LARGEST CONSUMERELECTRONICS COMPANIES ARE BETTING THAT THE MAGIC CAP OPERATING SYSTEM WILL DO FOR PERSONAL INTELLIGENT COMMUNICATORS WHAT THE MACINTOSH OPERATING SYSTEM DID FOR PERSONAL COMPUTERS MAKE THEM EASY AND FUN TO USE SONY CORP PHILIPS ELECTRONICS NV AND MATSUSHITA ELECTRIC INDUSTRIAL CO'S PANASONIC DIVISION ALONG WITH MOTOROLA INC ARE DEVELOPING HANDHELD DEVICES USING GENERAL MAGIC'S OPERATING SYSTEM SONY AND MOTOROLA EXPECT TO SHIP PERSONAL INTELLIGENT COMMUNICATORS PICS THIS SUMMER ABOUT THE TIME THAT AT&T'S PERSONALINK NETWORK SERVICE OPENS FOR BUSINESS PHILIPS AND PANASONIC ARE EXPECTED TO SHIP THEIR PRODUCTS LATE THIS YEAR OR EARLY NEXT PREVIOUSLY INTRODUCED PICS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO'S EO AND APPLE COMPUTER INC'S NEWTON HAVE BEEN CRITICIZED FOR BEING CLUNKY AND DIFFICULT TO USE THE NEWTON FOR INSTANCE HAS A FLAWED HANDWRITING RECOGNITION SYSTEM THAT MAKES DATA ENTRY A PERILOUS TASK AND COMMUNICATIONS CAPABILITY WAS OBVIOUSLY AN AFTERTHOUGHT IT CAN'T COMMUNICATE WITHOUT COSTLY EXTRA GEAR TO LINK IT TO A TELEPHONE LINE BUT THE MAGIC CAP OPERATING SYSTEM WAS DESIGNED PRETTY MUCH BY THE SAME TEAM THAT BUILT THE LOOK AND FEEL OF THE MAC OPERATING SYSTEM INCLUDING THE LEADERS OF THE MAC EFFORT ANDY HERTZFELD AND BILL ATKINSON THE KEY DESIGNERS ARE REALLY THE INTERFACE NINJAS OF OUR TIME OBSERVES STEVE LEVY AUTHOR OF A HISTORY OF THE MACINTOSH THIS IS DEFINITELY THE A TEAM LIKE THE MAC INTERFACE MAGIC CAP IS A BREAKTHROUGH IN THE SENSE THAT USING IT SEEMS NATURAL INTUITIVE AND EVEN WHIMSICAL UNLIKE THE MAC THE SYSTEM IS FOCUSED ALMOST ENTIRELY ON COMMUNICATION ATTEMPTING TO MAKE IT FAST EASY AND SEMIAUTOMATIC MAGIC CAP IS ALMOST ENTIRELY GRAPHICAL MEANING USERS ACCESS MESSAGE FORMS DRAWING TOOLS NAMES PHONE NUMBERS AND SIMILAR DEVICES BY TAPPING ICONS WITH A STYLUS IT TRIES TO REPLICATE THE PHYSICAL WORLD OF THE USER WITH THREE SCREENS SHOWING A DESK THE ROOMS IN A HALLWAY AND A DOWNTOWN POPULATED WITH THE BUSINESSES AND SERVICES THE USER WANTS TO FREQUENT IF A USER WANTS TO SEND A MESSAGE TO A COLLEAGUE HE CAN TAP A POSTCARD LAYING ON THE DESK THAT BRINGS UP THE POSTCARD PLUS A DIRECTORY OF NAMES WITH PHONE FAX OR EMAIL NUMBERS THE USER CAN WRITE A MESSAGE AND TAP A FEW MORE TIMES TO SEND IT OFF WIRELESSLY IN THE CASE OF MOTOROLA'S PIC AND VIA TELEPHONE MODEM IN SONY'S ANOTHER TAP CAN BRING UP A HALLWAY FULL OF ROOMS WITH SPECIFIC FUNCTIONS SUCH AS A LIBRARY FOR NEWS SERVICES OR A GAME ROOM FOR VIDEO GAMES A FEW MORE TAPS BRING THE SERVICES ONLINE TAPPING THE BUILDING ICONS ON THE DOWNTOWN SCREEN BRINGS UP THE PHONE NUMBERS OF SERVICES SUCH AS A RECORD STORE BROKERAGE OR BANK PURVEYORS OF THESE SERVICES AND INDEPENDENT SOFTWARE DEVELOPERS CAN PROVIDE SOFTWARE MODULES THAT ACTUALLY CREATE THE BUILDING ICONS IN THE USER'S DOWNTOWN AND ALLOW THE USER TO SEND ELECTRONIC AGENTS TO THESE STORES TO BUY THINGS SUCH AS TICKETS OR ALERT HIM TO THE ARRIVAL OF ORDERED GOODS IN FACT DEVELOPERS CAN BUILD NEW PROGRAMS AROUND EVERY FUNCTION ON MAGIC CAP LINKING THEM TO MODULES OR OBJECTS EMBEDDED IN THE SYSTEM THE OBJECTS CAN BE USED FOR EXAMPLE TO ADD ANIMATED CARTOONS OR BITS OF SONGS TO MESSAGES MAGIC CAP WILL INITALLY WORK BETTER ON PERSONAL COMPUTERS THAN ON PICS BECAUSE HANDHELD DEVICES WILL BE UNDERPOWERED FOR A WHILE INDUSTRY EXECUTIVES WHO HAVE TESTED MAGIC CAP ARE HIGH ON THE SYSTEM BUT SAY IT WILL PROBABLY BE ATTACKED BY COMPUTER SOPHISTICATES FOR BEING TOO CUTESY OR TOYLIKE AS THE MAC INITIALLY WAS BUT ROB MECHALEY SENIOR VICE PRESIDENT FOR MCCAW CELLULAR COMMUNICATIONS INC'S WIRELESS DATA DIVISION SAYS MAGIC CAP IS FASCINATING ADDING THAT INDUSTRY EXPERTS HAVE VOIDED THEMSELVES OF EMOTION AND SENTIMENT SOMETHING MORE GAMELIKE AND PLAYFUL IS DEFINITELY MORE CAPTIVATING FOR THE NOVICE MATT KURSH PRESIDENT OF ESHOP INC A SAN MATEO CALIF COMPANY THAT HAS DEVELOPED SOFTWARE THAT GIVES MAGIC CAP USERS VIRTUAL TOURS OF STORES SAYS THE OPERATING SYSTEM WILL REALLY SHINE ON HANDHELD DEVICES AS MORE POWERFUL PROCESSORS MEMORY DEVICES AND SCREENS BECOME AVAILABLE OVER THE NEXT TWO YEARS THEN SOME PHENOMENAL THINGS ARE GOING TO HAPPEN HE SAYS CURIOUSLY MAGIC CAP'S SUCCESS WOULD HURT TWO OF GENERAL MAGIC'S BIGGEST BACKERS AT&T AND APPLE SAY THEY ARE STICKING WITH THE OPERATING SYSTEMS THEY DEVELOPED FOR THEIR EXISTING PERSONAL COMMUNICATORS 9401060150 940106 AMR'S AMERICAN AIRLINES TRAFFIC FORT WORTH TEXAS AMERICAN AIRLINES A UNIT OF AMR CORP REPORTED THAT DECEMBER TRAFFIC FELL 38 FROM A YEAR EARLIER THE CARRIER FLEW 77 BILLION REVENUE PASSENGER MILES DOWN FROM DECEMBER 1992'S EIGHT BILLION MILES A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED FELL SLIGHTLY TO 588 FROM 599 FOR THE YEAR TRAFFIC DECLINED 03 TO 971 BILLION REVENUE PASSENGER MILES FROM 974 BILLION IN 1992 LOAD FACTOR DECLINED TO 604 FROM 637 9401060149 940106 PETROLEUM GEOSERVICES ACCORD HOUSTON PETROLEUM GEOSERVICES A/S AND CLOSELY HELD EDISON CHOUEST OFFSHORE INC SAID THEY AGREED TO BUY A SEISMIC VESSEL FROM SHELL OFFSHORE INC FOR ABOUT 20 MILLION THE COMPANIES SAID THEY WILL OPERATE THE VESSEL AND PROVIDE SEISMIC SERVICES TO SHELL A SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP 9401060148 940106 WHO'S NEWS BRANDON SYSTEMS CORP BRANDON SYSTEMS CORP SECAUCUS NJ PATRICIA KENNEDY 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF BRANCH OPERATIONS AT THIS COMPUTER AND TELECOMMUNICATIONS PROVIDER SHE WAS A CORPORATE VICE PRESIDENT OF BRANCH OPERATIONS ALSO PETER LORDI WAS NAMED TO THE ADDITIONAL POST OF SENIOR VICE PRESIDENT OF FINANCE AND ADMINISTRATION MR LORDI 50 IS TREASURER AND A DIRECTOR 9401060147 940106 INTERNATIONAL GAMSAKHURDIA DEPOSED PRESIDENT OF GEORGIA IS REPORTED TO BE DEAD BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW GEORGIA'S DEPOSED PRESIDENT ZVIAD GAMSAKHURDIA EITHER KILLED HIMSELF IN A GEORGIAN VILLAGE BESIEGED BY HIS FOES OR DIED IN A SKIRMISH JUST NORTH OF THE GEORGIAN BORDER ACCORDING TO REPORTS FROM GEORGIA YESTERDAY THE REPORTS CARRIED BY RUSSIAN AND GEORGIAN NEWS AGENCIES HAVE YET TO BE CONFIRMED IN THE VIOLENT FEUDING WORLD OF GEORGIAN POLITICS MR GAMSAKHURDIA PLAYED MANY PARTS AND SOME OBSERVERS AREN'T EVEN PERSUADED THAT HE IS DEAD AFTER BEING OVERTHROWN IN A BLOODY COUP TWO YEARS AGO MR GAMSAKHURDIA STUCK BY HIS CLAIM THAT HE NOT PRESIDENT EDUARD SHEVARDNADZE WAS THE LEGITIMATE LEADER OF GEORGIA LAST FALL MR GAMSAKHURDIA LAUNCHED A CIVIL WAR IN WHICH HIS LOYALISTS SEIZED MUCH OF WESTERN GEORGIA BEFORE THEY WERE LARGELY PUSHED BACK BY TROOPS FIGHTING FOR MR SHEVARDNADZE'S GOVERNMENT THE REPORT THAT MR GAMSAKHURDIA HAD KILLED HIMSELF CAME FROM MR GAMSAKHURDIA'S WIFE MANANA WHO SAID SHE HAD LEARNED OF HER HUSBAND'S DEATH FIVE DAYS AFTER IT HAPPENED MRS GAMSAKHURDIA TOLD RUSSIA'S ITARTASS NEWS SERVICE THAT GEORGIAN AUTHORITIES ARE AWARE OF GAMSAKHURDIA'S DEATH BUT HAVE CAREFULLY CONCEALED THE FACT TO THIS DAY MRS GAMSAKHURDIA WAS SPEAKING FROM GROZNY CAPITAL OF THE SECESSIONIST RUSSIAN REPUBLIC OF CHECHENYA JUST NORTH OF GEORGIA CHECHEN PRESIDENT DZHOKAR DUDAYEV HAS PROVIDED A HAVEN IN GROZNY FOR MR GAMSAKHURDIA AND HIS FAMILY SINCE THEY FLED THE GEORGIAN CAPITAL OF TBILISI A PURPORTED SUICIDE NOTE RELEASED BY THE PRESS SERVICE OF CHECHENYA'S PRESIDENT DUDAYEV AND TRANSLATED BY ITARTASS HAS MR GAMSAKHURDIA WRITING IN ODDLY PEDANTIC PROSE BEING IN CLEAR CONSCIENCE I COMMIT THIS ACT IN TOKEN OF PROTEST AGAINST THE RULING REGIME IN GEORGIA AND BECAUSE I AM DEPRIVED OF THE POSSIBILITY ACTING AS THE PRESIDENT TO NORMALIZE THE SITUATION TO RESTORE LAW AND ORDER GEORGIAN INTERIOR MINISTER SHOTA KVIRAYA LATER IN THE DAY TOLD ITARTASS THAT HIS MINISTRY HAS INFORMATION ABOUT ZVIAD GAMSAKHURDIA'S SUICIDE AND IS NOW DOUBLECHECKING IT STILL LATER THE GEORGIAN PRESS AGENCY GIA WEIGHED IN IT REPORTED THAT ACCORDING TO THE PRESS SERVICE OF THE MKHEDRIONI ONE OF GEORGIA'S STRONGEST PARAMILITARY GROUPS MR GAMSAKHURDIA HAD BEEN WOUNDED IN A SKIRMISH DEC 31 ON CHECHEN TERRITORY AND HAD DIED YESTERDAY IN GROZNY CAMPAIGNED FOR INDEPENDENCE IF THE 54YEAROLD MR GAMSAKHURDIA IS DEAD HIS DEATH CLOSES A MANIC CHAPTER IN RECENT GEORGIAN HISTORY A DISSIDENT WHO SERVED TIME IN PRISON UNDER SOVIET RULE HE LED GEORGIA'S CAMPAIGN FOR INDEPENDENCE AND IN MAY 1991 WAS ELECTED PRESIDENT WITHIN MONTHS HOWEVER MR GAMSAKHURDIA TURNED OUT TO BE AN EXTREME NATIONALIST INTOLERANT OF DISSENT EXALTING THE PURITY AND GRAND DESTINY OF THE GEORGIAN RACE AND ALSO TRYING TO HOLD TOGETHER A COUNTRY ALREADY FRACTURING AMONG VARIOUS WARLORDS MR GAMSAKHURDIA WAS RUN OUT OF OFFICE IN JANUARY 1992 HIS DEATH COULD MEAN THE END OF AN ARMED REBELLION AIMED AT REPLACING THE GOVERNMENT OF MR SHEVARDNADZE A GEORGIAN WHO SERVED AS SOVIET FOREIGN MINISTER UNDER MIKHAIL GORBACHEV BUT MR GAMSAKHURDIA'S DEMISE WOULD HARDLY SPELL THE END OF FIGHTING IN GEORGIA THE COUNTRY'S REGULAR ARMY AMOUNTS AT BEST TO A FEW THOUSAND MEN FAR STRONGER ARE THE VARIOUS PARAMILITARY GROUPS WHO SUPPORT MR SHEVARDNADZE BUT THAT ALSO RUN AN ARRAY OF RACKETS ROBBERY EXTORTION AND MURDER ARE RAMPANT GEORGIA LOST ITS NORTHWESTERN PROVINCE OF ABKHAZIA TO ARMED SEPARATISTS LAST SEPTEMBER AND MR SHEVARDNADZE HAS VOWED TO TAKE IT BACK THE PAST TWO YEARS HAVE ALSO SEEN SEPARATIST FIGHTING IN THE NORTHERN GEORGIAN PROVINCE OF SOUTH OSSETIA WHICH REMAINS RESTIVE ANALYSTS IN TBILISI WARN THAT THE SOUTHWESTERN PROVINCE OF ADJARIA BORDERING TURKEY IS ALSO RIPE FOR SEPARATIST REBELLION MANY GEORGIANS LEERY THAT RUSSIA MIGHT TRY TO REVIVE THE OLD SOVIET EMPIRE OPPOSE MR SHEVARDNADZE'S DECISION FOR GEORGIA TO JOIN THE COMMONWEALTH OF INDEPENDENT STATES AGGRAVATING ALL THESE TROUBLES IS AN UNREFORMED ECONOMY GEORGIA CUT OFF FROM ITS FORMER SOVIET UNION SUBSIDIES HAS BECOME ONE OF THE MOST DESTITUTE AMONG THE FORMER SOVIET REPUBLICS INFLATION HAS REDUCED THE GEORGIAN CURRENCY THE COUPON TO ABOUT ONETWENTIETH OF ITS VALUE SINCE LAST SPRING THE GOVERNMENT RECENTLY HAS BEEN POSTING MILITIA AROUND BAKERIES IN TBILISI TO STOP PEOPLE FROM STORMING THEM FOR BREAD 9401060145 940106 BORDEN STOCK DIVES ON PLAN TO RESTRUCTURE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC'S STOCK WAS BATTERED YESTERDAY AS INVESTORS EXPRESSED DISAPPOINTMENT WITH THE BELEAGUERED COMPANY'S NEW RESTRUCTURING PLAN AS EXPECTED BORDEN'S LONGAWAITED PLAN CALLS FOR THE SALE OF THE COMPANY'S NORTH AMERICAN SNACKS BUSINESS AND WILL RESULT IN A 650 MILLION CHARGE AGAINST FOURTHQUARTER EARNINGS BORDEN IS ALSO PUTTING ON THE BLOCK ITS TWO SMALLER SEAFOOD AND JAMS AND JELLIES BUSINESSES WHICH TOGETHER WITH SNACKS GENERATED 125 BILLION OR NEARLY 20 OF THE FOOD AND CHEMICAL COMPANY'S ESTIMATED 1993 SALES OF 675 BILLION AFTER HALVING ITS DIVIDEND SIX MONTHS AGO BORDEN YESTERDAY AGAIN SLASHED ITS ANNUAL DIVIDEND IN HALF THIS TIME TO 30 CENTS A SHARE IN A MEETING WITH ANALYSTS NEWLY APPOINTED CHIEF EXECUTIVE OFFICER ERVIN R SHAMES SAID THE DIVESTITURES WOULD HELP BORDEN REFOCUS ON ITS STRENGTHS PARTICULARLY IN THE PASTA AND NICHE GROCERY BUSINESSES WE WANT BORDEN TO BE THE ACKNOWLEDGED LEADER WITHIN THE FOOD INDUSTRY HE SAID BUT THE PLAN WHICH HAD BEEN IN THE WORKS FOR MONTHS FELL FAR SHORT OF WHAT MANY INVESTORS HAD BEEN HOPING FOR BORDEN'S SHARES TUMBLED 13 CLOSING AT 15875 A SHARE DOWN 2375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MANY INVESTORS HAD SPECULATED THAT BORDEN WOULD SELL LARGE CHUNKS OF ITS FLAGGING EMPIRE SUCH AS ITS TROUBLED DAIRY BUSINESS AND SOME HAD SNAPPED UP ITS STOCK IN HOPES THAT THE COMPANY WOULD BE SOLD TO A DEEPPOCKETED FOREIGN BUYER THE PLAN IS A BIG DUD SAID WILLIAM LEACH AN ANALYST AT DONALDSON LUFKIN & JENRETTE I DON'T SEE IT SOLVING ANY OF THEIR PROBLEMS ADDED GOLDMAN SACHS & CO'S NOMI GHEZ MANY PEOPLE ARE DISAPPOINTED BY THE FACT THAT THE RESTRUCTURING SEEMS TO BE SOMEWHAT TIMID IN SCALE BUT WHAT TROUBLED SOME ANALYSTS MORE WAS BORDEN'S FINANCIAL PROJECTIONS BORDEN SAID IT ANTICIPATES A LOSS OF A FEW CENTS A SHARE IN THE FOURTH QUARTER EXCLUDING THE BIG RESTRUCTURING CHARGE BUT INCLUDING A SMALL GAIN FROM THE SALE OF AN ASSET IN ITS CHEMICAL BUSINESS INCLUDING THE 650 MILLION CHARGE BORDEN SAID IT EXPECTS TO REPORT A LOSS OF 590 MILLION TO 600 MILLION FOR THE YEAR THE COMPANY SAID THE FIRST QUARTER OF 1994 WILL BE MARGINALLY PROFITABLE AND SAID FULLYEAR PERSHARE EARNINGS SHOULD BE AT THE UPPER END OF THE 75 CENTS TO 1 RANGE WHILE BORDEN IS PREDICTING SALES AND EARNINGS GROWTH BY 1995 MANY BORDEN WATCHERS ARE SKEPTICAL NOTING THAT THIS IS THE COMPANY'S THIRD RESTRUCTURING EFFORT IN FOUR YEARS EVERY TIME BORDEN MAKES AN ANNOUNCEMENT THEY SAY BY THE WAY THE CURRENT QUARTER IS TERRIBLE BUT THINGS ARE ABOUT TO GET BETTER' SAID MR LEACH STILL WHILE SOME INSTITUTIONAL INVESTORS AND ANALYSTS HAVE CHARACTERIZED BORDEN'S PLAN AS INADEQUATE OTHERS SAY THE COMPANY HAD FEW ALTERNATIVES GIVEN THE STATE OF ITS BUSINESSES AND ITS BALANCE SHEET WITH A PORTFOLIO OF TROUBLED FOOD BRANDS AND MORE THAN 2 BILLION IN DEBT BORDEN COULDN'T AFFORD TO LOSE THE CASH FLOW GENERATED BY ITS HEALTHIER CHEMICAL BUSINESS THEY SAY THE COMPANY ALSO COULDN'T AFFORD TO SELL ITS UNPROFITABLE DAIRY BUSINESS AND TAKE ANOTHER CHARGE SMART COMPANIES DO THINGS SEQUENTIALLY SAYS GARY STIBEL OF NEW ENGLAND CONSULTING GROUP OTHERWISE YOU LITERALLY OPEN THE DOORS UP FOR A FIRE SALE AND THAT'S RARELY A SMART COURSE OF ACTION INDEED SOME PEOPLE CLOSE TO THE COMPANY SAY THE SALE OF BORDEN'S CHEMICAL OR DAIRY BUSINESSES MAY BE CONSIDERED AS EARLY AS THIS YEAR IF THINGS START TO TURN AROUND YOU DON'T DUMP A BUSINESS WHEN YOU KNOW ITS PROBLEMS ARE CORRECTABLE SAID A FOOD INDUSTRY EXECUTIVE EXECUTIVES AT BIG FOOD COMPANIES SOME OF WHICH HAD BEEN HOPING TO SNAG A BARGAIN SUGGEST THAT BORDEN SHOULDN'T EXPECT TO SELL ITS SNACK FOOD BUSINESS WHICH IS MADE UP OF SUCH REGIONAL BRANDS AS WISE AND JAYS FOR TOP DOLLAR ANALYSTS SAID THE COMPANY EXPECTS ITS PLANNED DIVESTITURES TO GENERATE NO MORE THAN 350 MILLION IN THE 52 WEEKS ENDED DEC 5 1993 DOLLAR SALES IN THE CHIPS AND SNACKS CATEGORY INCREASED 28 BUT SALES OF BORDEN'S BRANDS SANK 13 TO 2188 MILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE INDEED BORDEN'S SNACK FOOD BUSINESS WOULD BE A REAL CHALLENGE FOR ITS BUYER SAYS ONE FOOD EXECUTIVE YOU BUY IT AND YOU GET TO GO TOETOTOE WITH INDUSTRY LEADER FRITOLAY CO WHILE SOME INDUSTRY EXECUTIVES HAVE SPECULATED THAT UNITED BISCUITS HOLDINGS PLC'S KEEBLER CO UNIT WOULD BE INTERESTED IN BORDEN'S SNACK FOOD BRANDS THE COMPANY SAYS THERE'S NO KEEBLER INTEREST IN THAT BUSINESS AT THIS TIME AS FOR FRITOLAY A UNIT OF PEPSICO INC THE COMPANY WILL SEE WHAT THEY HAVE TO OFFER SAID A SPOKESMAN BUT AT THIS POINT IT IS PURELY SPECULATIVE IN ADDITION TO THE DIVESTITURES BORDEN SAID IT PLANS COST REDUCTIONS THAT SHOULD REACH AN ANNUALIZED RATE OF 70 MILLION TO 80 MILLION BY YEAR END AND 100 MILLION TO 125 MILLION BY THE END OF 1995 AS PART OF THE PLAN MR SHAMES ALSO UNVEILED NEW STRATEGIES TO TRY TO TURN AROUND BORDEN'S DAIRY OPERATIONS AND FOCUS ON ITS PASTA BUSINESS WHICH IS FIGHTING TO KEEP ITS NO 1 POSITION HE SAID 1994 ADVERTISING SPENDING FOR THE PASTA BUSINESS WILL INCREASE TO 8 MILLION FROM 2 MILLION TO 3 MILLION HE ALSO STRESSED THE GROWTH POTENTIAL OF SOME WELLKNOWN BRANDS IN BORDEN'S NICHE GROCERY BUSINESS INCLUDING CRACKER JACK REALEMON LEMON JUICE EAGLE BRAND CONDENSED MILK AND WYLER'S BOUILLON WHAT'S SO STRIKING TO ME IS THE EXTENT TO WHICH THIS COMPANY HASN'T BEEN ABLE TO GET PEOPLE TO UNDERSTAND THE NUMBER OF GOOD BUSINESSES IT HAS MR SHAMES SAID IN AN INTERVIEW THIS BUSINESS IS IN A LOT BETTER SHAPE THAN A LOT OF OTHER COMPANIES MR SHAMES SAID 490 MILLION OF THE 650 MILLION FOURTHQUARTER CHARGE IS RELATED TO BUSINESS DIVESTITURES WHILE ANOTHER 77 MILLION IS NEEDED FOR ORGANIZATIONAL RESTRUCTURING AND 83 MILLION FOR ACCOUNTING CHANGES HE ADDED CASH FLOW IN 1994 IS EXPECTED TO REACH 400 MILLION TO 450 MILLION MOST OF WHICH WOULD BE APPLIED TO DEBT REPAYMENT 9401060144 940106 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK KRISTIN GERLACH WAS NAMED VICE PRESIDENT BROADCASTING LEGAL SHE SUCCEEDS CHARLES STANFORD WHO ASSUMES THE NEW POST OF VICE PRESIDENT PRODUCTION AND MULTIMEDIA LEGAL MS GERLACH WAS PREVIOUSLY SENIOR GENERAL ATTORNEY LAW AND REGULATION AT THIS BROADCASTING CONCERN 9401060142 940106 INTERNATIONAL VW AGREES NOT TO RECRUIT MORE WORKERS FROM GM BONN IN AN OTHERWISE INCONCLUSIVE COURT SESSION VOLKSWAGEN AG FORMALLY AGREED YESTERDAY NOT TO HIRE ANY MORE EMPLOYEES AWAY FROM GENERAL MOTORS CORP'S PURCHASING DIVISION A FRANKFURT JUDGE ADJOURNED COURT UNTIL FEB 2 WHEN HE WILL ANNOUNCE A DECISION IN THE CIVIL CASE INCLUDING A POSSIBLE EMPLOYMENT BAN ON SEVEN FORMER GM MANAGERS WHO FOLLOWED J IGNACIO LOPEZ DE ARRIORTUA TO VW THE COURT PROCEEDINGS ARE A LEGAL SIDESHOW TO THE ALLEGATIONS OF INDUSTRIAL ESPIONAGE HANGING OVER MR LOPEZ AND HIS FOLLOWERS AND HAVE NO DIRECT EFFECT ON THE CRIMINAL INVESTIGATIONS BEING CONDUCTED BY GERMAN PUBLIC PROSECUTORS AND THE US JUSTICE DEPARTMENT STILL LAWYERS FOR GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG TRIED TO MAKE THE CASE THAT THE ALLEGED THEFT OF SENSITIVE GM DOCUMENTS TOGETHER WITH WHAT IT CALLS A SYSTEMATIC CAMPAIGN TO POACH KEY EMPLOYEES AMOUNTS TO TRYING TO STEAL THE GM'S PURCHASINGSYSTEM KNOWHOW VW YESTERDAY TOLD THE COURT IT WOULDN'T CONTEST THE INJUNCTION BARRING FURTHER HIRING IN AN EFFORT TO SIMPLIFY COURT PROCEEDINGS THE GERMAN CAR MAKER DENIED THAT THIS DECISION INDICATED ANY ADMISSION OF WRONGDOING 9401060140 940106 BUSINESS BRIEFS HORIZON OUTLET CENTERS INC IS ACQUIRING THE GEORGIAN PLACE OUTLET CENTER SOMERSET PA IN A DEAL VALUED AT 181 MILLION HEILIGMEYERS CO ACQUIRED CERTAIN ASSETS OF 92 STORES OF MCMAHAN'S FURNITURE CO FOR 55 MILLION AN UNAFFILIATED PARTY WILL BUY 70 OF THE STORES FOR ABOUT 57 MILLION AND LEASE THEM BACK TO HEILIGMEYERS MONTEREY PASTA CO EXPANDED ITS RETAIL DISTRIBUTION INTO SOUTHERN CALIFORNIA THROUGH FOUR MAJOR GROCERY CHAINS AND AGREED TO OPEN 12 QUICKSERVICE GOURMET PASTA RESTAURANTS IN MAJOR SHOPPING MALLS IN THAT REGION DURING THE SECOND QUARTER OF THIS YEAR ACOI INC'S SHAREHOLDERS APPROVED A PROPOSAL TO CHANGE THE AUTOINSURANCE CONCERN'S NAME TO HALLMARK FINANCIAL SERVICES INC EFFECTIVE IMMEDIATELY TRINET CORPORATE REALTY TRUST INC ACQUIRED THREE DISTRIBUTION FACILITIES FROM VOLKSWAGEN OF AMERICA A UNIT OF VOLKSWAGEN AG FOR 26 MILLION STERIS CORP COMPLETED ITS ACQUISITION OF MICRODIMENSIONS INC MENTOR OHIO TERMS WEREN'T DISCLOSED 9401060139 940106 JUDGE ORDERS RR DONNELLEY TO SHED MEREDITH/BURDA ON ANTITRUST GROUNDS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL AN ADMINISTRATIVE LAW JUDGE DEALT RR DONNELLEY & SONS CO A SETBACK IN ITS LONGSIMMERING DISPUTE WITH FEDERAL ANTITRUST REGULATORS BY ORDERING THE COMPANY TO SHED OPERATIONS IT PAID 4875 MILLION TO ACQUIRE DESPITE STRENUOUS FEDERAL TRADE COMMISSION OBJECTIONS MORE THAN THREE YEARS AGO JUDGE LEWIS F PARKER FOUND IN FAVOR OF THE FTC'S CLAIM THAT THE CHICAGO COMPANY'S 1990 ACQUISITION OF MEREDITH/BURDA COS IMPROPERLY RESTRICTS COMPETITION IN THE FIELD KNOWN AS HIGHVOLUME PUBLICATION GRAVURE PRINTING DONNELLEY HE RULED MUST SELL THE FOUR PLANTS INVOLVED IN THE ACQUISITION TO AN ACQUIRER APPROVED BY THE FTC THE WORLD'S BIGGEST COMMERCIALPRINTING CONCERN SAID IT WILL APPEAL THE RULING THE APPEAL WILL HAVE THE EFFECT OF STAYING THE ORDER TO SHED THE CONTESTED OPERATIONS IN LATE 1989 DONNELLEY AGREED TO ACQUIRE MEREDITH/BURDA A JOINT VENTURE OWNED BY DES MOINES IOWABASED MEREDITH CORP AND MEMBERS OF GERMANY'S BURDA FAMILY AFTER A LENGTHY REVIEW THE FTC ASKED THE FEDERAL COURT FOR THE DISTRICT OF COLUMBIA TO BAR THE PURCHASE ON THE GROUNDS THAT COMPETITION IN THE GRAVURE PRINTING PROCESS COULD BE HARMED THE GRAVURE PRINTING PROCESS REPRESENTS LESS THAN 20 OF ALL US PRINTING AND IS OVERSHADOWED IN SCOPE BY A DIFFERENT TECHNOLOGY KNOWN AS OFFSET PRINTING IN AUGUST 1990 US DISTRICT COURT JUDGE STANLEY S HARRIS DECLINED THE FTC'S REQUEST TO ISSUE THE INJUNCTION THE REAGAN APPOINTEE FOUND AT THE TIME THAT ANY ANTICOMPETITIVE CONSEQUENCES ARISING OUT OF THE PROPOSED ACQUISITION ARE UNLIKELY THE FTC'S CHALLENGE HE WROTE MIGHT HAVE HAD CONSIDERABLE VALIDITY 10 OR EVEN FIVE YEARS AGO BUT TECHNOLOGICAL DEVELOPMENTS HAVE PERMITTED PRINTERS TO USE THE OFFSET METHOD FOR PRINTING MAGAZINES CATALOGS AND THE LIKE WHICH ARE INDISTINGUISHABLE FROM THOSE PRINTED BY THE GRAVURE METHOD HE ALSO WROTE THAT CUSTOMERS OF COMMERCIALPRINTING OPERATIONS ARE SOPHISTICATED AND POSSESS SUBSTANTIAL BARGAINING POWER EVEN IN MARKETS WHERE COMPETITION IS LIMITED THAT RULING CLEARED THE WAY FOR DONNELLEY TO CLOSE THE DEAL WHICH IT DID IN SEPTEMBER 1990 THE FTC APPEALED THE MATTER TO THE INTERNAL ADMINISTRATIVE LAW JUDGE SIX MONTHS OF HEARINGS ON THE MATTER CONCLUDED LAST JUNE JUDGE PARKER'S RULING THIS WEEK NOTED THAT PRIOR TO THE ACQUISITION MEREDITH/BURDA HAD BEEN THE NATION'S THIRDLARGEST COMMERCIAL PRINTER AND THAT IT AND DONNELLEY HAD BEEN DIRECT AND SUBSTANTIAL COMPETITORS IN THE GRAVURE MARKET THE MERGER HE SAID CREATED A FIRM WITH DOMINANT MARKET POWER OF AS MUCH AS 487 OF THE GRAVURE MARKET HE SPECIFICALLY REJECTED JUDGE HARRIS'S FINDING THAT COMPETITION WOULDN'T BE HURT BECAUSE THE OFFSETPRINTING TECHNOLOGY OFFERS AN ALTERNATIVE DONNELLEY REITERATED THAT IT BELIEVES THE ACQUISITION WAS LEGALLY PROPER THE COMPANY VOWED TO APPEAL THE RULING TO THE FULL FTC AND ON TO THE FEDERAL COURTS IF NEEDED DONNELLEY SHARES CLOSED YESTERDAY AT 30375 OFF 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401060138 940106 ORYX ENERGY BUYS OIL INTEREST DALLAS ORYX ENERGY CO SAID IT ACQUIRED AN ADDITIONAL 82 INTEREST IN THE NINIAN OIL FIELD IN THE NORTH SEA FROM ENTERPRISE OIL PLC FOR 33 MILLION NINIAN IS ORYX'S LARGEST PRODUCING FIELD AND THE COMPANY SAID THE ACQUISITION BOOSTS ITS INTEREST TO 295 FROM 213 ORYX'S SHARE OF PRODUCTION FROM THE FIELD WILL RISE TO 20000 BARRELS DAILY FROM 15000 THE COMPANY SAID 9401060137 940105 CORPORATE FINANCE BY JEFF D OPDYKE SURE INITIAL PUBLIC OFFERINGS RAISED A BUNDLE OF MONEY FOR TEXAS COMPANIES LAST YEAR MORE THAN 3 BILLION BUT THEY WERE ONLY A SMALL PART OF THE CAPITAL HARVESTED IN THE PUBLIC MARKETS IN 1993 ALSO HOT IN TEXAS SECONDARY AND PREFERRED STOCK OFFERINGS AND DEBT PLACEMENTS ALL TOLD TEXAS BUSINESS PULLED IN MORE THAN 291 BILLION THREE TIMES THE AMOUNT RAISED JUST THREE YEARS AGO FOR THE MOST PART THIS INCREASED ACTIVITY IS THE RESULT OF COMPANIES LOOKING TO CLEAN UP THEIR BALANCE SHEETS AFTER THE PROBLEMS OF THE 1980S THEY ARE ATTRACTED BY TODAY'S LOW INTEREST RATES A GENERALLY FAVORABLE ECONOMIC OUTLOOK AND WALL STREET OPTIMISM SO MANY COMPANIES THAT HAVE NEEDED TO REPAIR THEIR BALANCE SHEETS FOR SO LONG FINALLY FOUND A CONSTRUCTIVE MARKET THEY COULD TAKE ADVANTAGE OF SAYS RICK GORDON MANAGING DIRECTOR IN MERRILL LYNCH'S HOUSTON OFFICE HOUSTON'S TENNECO INC FOR EXAMPLE OUTGUNNED EVERYONE IN THE SECONDARYOFFERING ARENA ISSUING 106 BILLION OF COMMON STOCK IN APRIL TO RETIRE CERTAIN DEBT ALSO IN HOUSTON COASTAL CORP PICKED UP 200 MILLION IN AN APRIL PREFERRED STOCK OFFERING WHICH ALSO EXTINGUISHED SOME OF THAT COMPANY'S DEBT NOT THAT DEBT IS DEAD TEXAS COMPANIES LOADED ON NEARLY 19 BILLION IN 1993 THAT HOWEVER IS DOWN 16 FROM THE YEAR BEFORE WHEN MOST CORPORATIONS FIRST JUMPED AT LOW INTEREST RATES AS MIGHT BE EXPECTED DALLAS AND HOUSTON ACCOUNTED FOR NEARLY ALL THE FINANCING ACTIVITY OF THE 280 DIFFERENT OFFERINGS IN 1993 THE TWO METRO AREAS ACCOUNTED FOR 223 THE LARGEST CORPORATE DEALS OUTSIDE OF DALLAS AND HOUSTON GULF STATES UTILITIES INC BEAUMONT PICKED UP 170 MILLION IN DEBT IN JULY WHILE LAST MONTH SAN ANTONIO'S ARGYLE TELEVISION OPERATIONS INC RAISED 150 MILLION IN DEBT 9401060136 940106 WHO'S NEWS TURNER CORP TURNER CORP NEW YORK DAVID J SMITH 53 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THE BUILDING CONCERN MR SMITH SUCCEEDS ALLEN H WAHLBERG 60 WHO WAS NAMED SENIOR VICE PRESIDENT STRATEGIC PLANNING AND RISK ANALYSIS MR SMITH HAD BEEN VICE PRESIDENT AND TREASURER OF MACK TRUCKS INC A UNIT OF RENAULT VEHICULES INDUSTRIELS THE TRUCK DIVISION OF FRENCH AUTO MAKER RENAULT SA 9401060135 940106 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 LOW 3 1/16 NEAR CLOSING BID 3 1/8 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 314 30 TO 59 DAYS 316 60 TO 89 DAYS 320 90 TO 119 DAYS 322 120 TO 149 DAYS 325 150 TO 179 DAYS 333 180 TO 239 DAYS 343 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 323 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 256 ONE MONTH 259 TWO MONTHS 265 THREE MONTHS 281 SIX MONTHS 304 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 315 ONE MONTH 325 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 311 60 DAYS 315 90 DAYS 320 120 DAYS 326 150 DAYS 330 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 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 588 JAPAN 3 SWITZERLAND 750 BRITAIN 550 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JANUARY 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 707 60 DAYS 715 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 702 60 DAYS 712 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 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 9401060134 940106 WHAT'S NEWS WORLDWIDE THOUSANDS OF TROOPS SWEPT INTO SOUTHERN MEXICO TO QUELL A REBELLION ABOUT 12000 SOLDIERS ONEFIFTH OF MEXICO'S ARMED FORCES ATTACKED BY AIR AND BY LAND ON THE FIFTH DAY OF AN UPRISING BY ARMED PEASANTS IN THE SOUTHERN STATE OF CHIAPAS THE MEXICAN AIR FORCE DROPPED BOMBS AND FIRED ROCKETS ON SUSPECTED GUERRILLA STRONGHOLDS IN THE HILLS RINGING THE TOWN OF SAN CRISTOBAL DE LAS CASAS AND HUNDREDS OF REBELS WERE SAID TO BE FLEEING INTO THE HILLS THE MASSIVE MILITARY OFFENSIVE BY THE GOVERNMENT CAME VIRTUALLY ON THE HEELS OF ITS OFFER TO NEGOTIATE ARMY AUTHORITIES SAID THAT THE DEATH TOLL FROM THE UPRISING STOOD AT 95 BUT ROMAN CATHOLIC SOURCES SAID THE FIGURE WAS CLOSER TO 400 NORTH KOREA AND THE US HAVE REACHED AN AGREEMENT IN PRINCIPLE THAT WOULD OPEN PYONGYANG'S SEVEN DECLARED NUCLEAR RESEARCH SITES TO INTERNATIONAL INSPECTION THE STATE DEPARTMENT SAID NORTH KOREA WILL OPEN TALKS WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY TO REVIEW DETAILS OF THE INSPECTION CLINTON'S PERSONAL LAWYER HAD THE JUSTICE DEPARTMENT SUBPOENA DOCUMENTS REGARDING WHITEWATER DEVELOPMENT A MOVE THAT PROBABLY PREVENTS THEIR RELEASE UNDER THE FREEDOM OF INFORMATION ACT THE CLINTONS HAVE TRIED TO DEFUSE A CONTROVERSY OVER THEIR WHITEWATER PARTNERSHIP WITH THE OWNER OF A FAILED THRIFT SERB MILITARY FORCES UNLEASHED HEAVY ARTILLERY ANTIAIRCRAFT AND SNIPER FIRE ON SARAJEVO IN THE WORST BOMBARDMENT RESIDENTS COULD RECALL IN MONTHS MEANWHILE THE UN ANNOUNCED THAT LT GEN SIR MICHAEL ROSE OF BRITAIN WOULD SUCCEED BELGIAN LT GEN FRANCIS BRIQUEMONT AS THE UN'S COMMANDER FOR BOSNIA ISRAEL AND THE PLO AGREED TO MEET AGAIN IN EGYPT NEXT WEEK TO TRY TO IRON OUT DIFFERENCES OVER PALESTINIAN AUTONOMY BUT A SPOKESMAN FOR ISRAEL'S RABIN SAID IT WOULD TAKE MANY WEEKS TO REACH AN ACCORD MEANWHILE PLO CHIEF ARAFAT SENT AN AIDE TO JORDAN FOR EMERGENCY TALKS AMID SOURING RELATIONS THE AMA HAS MADE BIG CAMPAIGN CONTRIBUTIONS TO CONSERVATIVES WHO OPPOSED THE AMA ON SOME KEY ISSUES ACCORDING TO A STUDY IT FOCUSED ON THREE ISSUES PROMOTING TOBACCO EXPORTS REQUIRING A WAITING PERIOD FOR HANDGUN PURCHASES AND RESTRICTING WHAT DOCTORS CAN TELL PATIENTS ABOUT ABORTIONS GEORGIA'S DEPOSED PRESIDENT HAS DIED RUSSIAN AND GEORGIAN NEWS AGENCIES SAID GAMSAKHURDIA REPORTEDLY EITHER KILLED HIMSELF IN A GEORGIAN VILLAGE BESIEGED BY HIS RIVALS OR DIED IN A SKIRMISH JUST NORTH OF THE GEORGIAN BORDER A NASA INVESTIGATORY PANEL CONCLUDED THAT THE DISAPPEARANCE OF THE AGENCY'S MARS OBSERVER MOST LIKELY WAS CAUSED BY A FUELLINE LEAK THAT SENT THE SPACECRAFT SPINNING OUT OF CONTROL THE REPORT IS PROBABLY THE CLOSEST THAT NASA WILL EVER COME TO KNOWING WHAT CAUSED THE FAILURE OF ITS 1 BILLION MARS MISSION IN AUGUST THE FRENCH GOVERNMENT ANNOUNCED PLANS TO IMPOSE TIGHT CONTROLS OVER ARTIFICIAL FERTILIZATION AMID A CONTROVERSY CONCERNING THE BIRTH OF TESTTUBE TWINS TO A 59YEAROLD BRITISH WOMAN THE CONSERVATIVE GOVERNMENT SAID IT WOULD PROPOSE BILLS REQUIRING JUDGES TO APPROVE EMBRYO IMPLANTATIONS SOUGHT BY INFERTILE COUPLES TECHNICIANS IN UKRAINE HAVE BEGUN REMOVING THE NUCLEAR WARHEADS FROM THE SS24 THE COUNTRY'S MOST MODERN AND POTENT MISSILE THE MOVE WHICH HAS BEEN VERIFIED BY US SATELLITES IS A BEGINNING STEP TOWARD UKRAINE'S TREATY OBLIGATION TO DISMANTLE ITS MISSILES DESTROY THE SILOS AND SEND THE WARHEADS BACK TO RUSSIA US SOLDIERS BEGAN A ROADIMPROVEMENT AND SCHOOLCONSTRUCTION MISSION IN A JUNGLE REGION OF COLOMBIA WHERE REBELS AND COCAINE TRAFFICKERS OPERATE A GROUP OF 120 US SOLDIERS FLEW TO THE VILLAGE OF JUANCHACO TO BEGIN THE WORK WHICH SOME LOCAL POLITICIANS HAVE CONDEMNED AS A RUSE TO LET THE US INTERVENE IN COLOMBIA'S INTERNAL AFFAIRS THE IRA'S POLITICAL WING WILL SEND A LETTER TO THE BRITISH GOVERNMENT TO GET CLARIFICATION OF A NORTHERN IRELAND PEACE PLAN THE GROUP'S LEADER SAID GERRY ADAMS THE SINN FEIN PRESIDENT SAID IN A STATEMENT ISSUED IN BELFAST THAT HE IS BAFFLED BY BRITISH PRIME MINISTER MAJOR'S REFUSAL TO DISCUSS THE ANGLOIRISH PEACE PLAN WITH HIM DIED THOMAS P TIP O'NEILL JR 81 FORMER HOUSE SPEAKER WHOSE CAREER BROUGHT HIM FROM AN IRISH IMMIGRANT NEIGHBORHOOD TO THE HIGHEST LEVELS OF NATIONAL POWER LAST NIGHT IN BOSTON THE DEMOCRAT RETIRED IN 1987 AFTER 17 TERMS IN CONGRESS 9401060133 940106 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 AMERICAN PRESIDENT COS 150 MILLION OF DEBENTURES DUE JAN 15 2024 PRICED AS 8S AT 98956 TO YIELD 8093 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 155 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC BANK OF BOSTON CORP 300 MILLION OF SUBORDINATED NOTES DUE FEB 1 2004 PRICED AS 6625S AT 9948 TO YIELD 6696 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 83 BASIS POINTS ABOVE TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 429 MILLION OF NOTES DUE JAN 13 1997 PRICED AT PAR TO YIELD 475 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF DEBENTURES DUE JAN 12 2009 PRICED AT PAR TO YIELD 663 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS WAS PRICED AT A SPREAD OF 76 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF STEPUP NOTES DUE JAN 12 1999 PRICED INITIALLY AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES JAN 12 1996 TO 585 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 72 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STEPUP MEDIUMTERM NOTES DUE JAN 19 1999 PRICED INITIALLY AT PAR TO YIELD 5 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 59 JAN 19 1996 THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 24 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF STEPUP MEDIUMTERM NOTES DUE JAN 17 1997 PRICED INITIALLY AT PAR TO YIELD 415 ACCORDING TO MCM CORPORATEWATCH THE COUPON RISES TO 53 JAN 17 1995 THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FIRST NATIONAL BANK OF MARYLAND 100 MILLION OF FLOATINGRATE NOTES DUE JAN 9 1995 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT WEEKLY AND PAY QUARTERLY AT EIGHT BASIS POINTS ABOVE THREEMONTH TREASURY BILLS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FIRST NATIONAL BANK OF MARYLAND IS A UNIT OF FIRST MARYLAND BANCORP PROGRESSIVE CORP 200 MILLION OF NOTES DUE JAN 15 2004 PRICED AS 66S AT 99854 TO YIELD 662 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 75 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC STUDENT LOAN MARKETING ASSOCIATION 700 MILLION OF FLOATINGRATE NOTES DUE JAN 13 1999 PRICED AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY QUARTERLY AND FLOAT WEEKLY AT 21 BASIS POINTS ABOVE THREEMONTH TREASURY BILLS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC NEW JERSEY BUILDING AUTHORITY 315 MILLION OF 1994 SERIES STATEBUILDING REVENUE BONDS APPARENTLY WON BY GOLDMAN SACHS & CO YIELDS FOR REOFFERED BONDS RANGE FROM 325 IN 1996 TO 53 IN 201719 THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S AND DOUBLEAMINUS BY S&P FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1670 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 356 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 440 MILLION OF REMIC SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199412 IS BACKED BY FANNIE MAE 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 1 BILLION OF 5 EUROBONDS DUE JAN 31 1997 AT ISSUE PRICE 1013 VIA GOLDMAN SACHS INTERNATIONAL AND LEHMAN BROTHERS INTERNATIONAL REOFFERED AT 100125 TO YIELD 495 A MARGIN OF 32 BASIS POINTS OVER COMPARABLE US TREASURY GUARANTOR ABBEY NATIONAL PLC FEES 1375 BAYERNHYPO FINANCE NV GERMAN PARENT 500 MILLION MARKS OF 6 EUROBONDS DUE FEB 9 2004 AT ISSUE PRICE 1011 VIA BAYERISCHE HYPOTHEKENUND WECHSELBANK AG BONDS YIELD 619 AFTER FEES OF 25 A SPREAD OF 60 BASIS POINTS ABOVE GERMAN BUND OF SEPTEMBER 2003 GUARANTOR BAYERISCHE HYPOTHEKENUND WECHSELBANK AG CREDIT FONCIER DE FRANCE FRENCH AGENCY THREE BILLION FRENCH FRANCS OF 575 EUROBONDS DUE NOV 28 2002 AT ISSUE AND REOFFER PRICE 992 VIA BNP CAPITAL MARKETS LTD BONDS YIELD SPREAD OF 22 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY FEES 03 CREDIT LOCAL DE FRANCE FRENCH AGENCY 200 BILLION LIRE OF 75 EUROBONDS DUE JAN 26 1999 AT ISSUE PRICE 101875 VIA JP MORGAN SECURITIES LTD BONDS YIELD 75 AFTER FEES OF 1875 FINNISH EXPORT CREDIT LTD FINNISH AGENCY FIVE BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 11 1999 AT ISSUE PRICE 10368 VIA MERRILL LYNCH INTERNATIONAL LTD PAYABLE QUARTERLY AT 30 BASIS POINTS OVER THREEMONTH YEN LONDON INTERBANK OFFERED RATE UNTIL JAN 11 1997 THEREAFTER PAYABLE SEMIANNUALLY AT FIVEYEAR YEN SWAP RATE FEES 025 GENERAL ELECTRIC CAPITAL CORP US PARENT 250 BILLION LIRE OF 7375 EUROBONDS DUE FEB 8 1999 AT ISSUE PRICE 1014 VIA PARIBAS CAPITAL MARKETS LTD BONDS YIELD 749 AFTER FEES OF 1875 GENERAL ELECTRIC CAPITAL IS A GENERAL ELECTRIC CO UNIT LA CAISSE CENTRALE DES JARDINS DE QUEBEC CANADA 100 MILLION CANADIAN DOLLARS OF 625 EUROBONDS DUE DEC 29 1999 AT ISSUE PRICE 10125 VIA HAMBROS BANK LTD REOFFERED AT 9965 TO YIELD 632 A SPREAD OF 48 BASIS POINTS OVER COMPARABLE CANADIAN GOVERNMENT BOND FEES 1875 LANDESBANK SCHLESWIGHOLSTEIN GIROZENTRALE LUXEMBOURG BRANCH GERMAN PARENT 100 MILLION OF 65 SUBORDINATED EUROBONDS DUE FEB 4 2004 AT ISSUE PRICE 10005 VIA DAIWA EUROPE LTD REOFFERED AT 984 TO YIELD 672 A MARGIN OF 38 BASIS POINTS ABOVE COMPARABLE UK GILT FEES TWO OSTERREICHISCHE KONTROLLBANK AG AUSTRIAN AGENCY 30 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 27 2001 AT ISSUE PRICE 107816 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LIBOR PLUS 70 BASIS POINTS FEES UNDISCLOSED PRIMARY INDUSTRY BANK OF AUSTRALIA AUSTRALIA 50 MILLION AUSTRALIAN DOLLARS OF 675 EUROBONDS DUE FEB 25 1999 AT ISSUE PRICE 10115 VIA HAMBROS BANK LTD BONDS YIELD 693 AT 99275 COMANAGERS' BREAKEVEN PRICE FEES TWO LESS 0125 FOR LEAD MANAGER 9401060132 940106 ENTERPRISE VENTURE CAPITALISTS TARGET WOMENOWNED BUSINESSES NEW FUNDS SEE OPPORTUNITIES FOR INVESTMENT IN A MARKET LONG NEGLECTED BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL FOR YEARS THE VENTURECAPITAL INDUSTRY VIRTUALLY IGNORED BUSINESSES OWNED BY WOMEN BUT NOW SUCH ENTREPRENEURS CAN TAP A NEW SOURCE OF MONEY FUNDS TARGETED SOLELY AT WOMEN SEVERAL VENTURECAPITAL FUNDS RECENTLY HAVE SPRUNG UP TO PROVIDE FEMALE ENTREPRENEURS WITH CAPITAL AMONG THEM WOMEN'S EQUITY FUND IN BOULDER COLO NEW ERA CAPITAL PARTNERS IN LOS ANGELES AND INROADS CAPITAL PARTNERS IN CHICAGO TOGETHER THE FUNDS SAY THEY COULD PROVIDE WOMENOWNED BUSINESSES WITH AS MUCH AS 180 MILLION BY THE END OF THIS YEAR ALTHOUGH THE 180 MILLION IS STILL NOWHERE NEAR THE CAPITAL THAT WOMEN NEED IT'S AN IMPORTANT FIRST STEP SAYS DAWNMARIE DRISCOLL A CAPE CORAL FLA AUTHOR AND BUSINESS CONSULTANT THE MONEY MAY SERVE TO ENCOURAGE TRADITIONAL COMMERCIAL LENDERS AND OTHER CAPITAL PROVIDERS TO LOOK SERIOUSLY AT WOMEN AS ENTREPRENEURS SHE ADDS EXPERTS ESTIMATE THAT WOMENOWNED BUSINESSES RECEIVED LESS THAN 1 OF THE APPROXIMATELY 3 BILLION INVESTED BY INSTITUTIONAL VENTURE CAPITALISTS IN 1993 YET BUSINESSES OWNED BY WOMEN ACCOUNT FOR AN ESTIMATED 30 OF ALL US BUSINESSES FOR MANY WOMEN ENTREPRENEURS CREDIT CARDS ARE THE NO 1 SOURCE OF SHORTTERM FINANCING MS DRISCOLL SAYS SOME NEW VENTURE CAPITALISTS AIM TO CHANGE THAT THEY SEE THE MOST PROMISING OPPORTUNITIES IN HELPING ESTABLISHED WOMENOWNED BUSINESSES TO EXPAND THEY ALSO EXPECT BIG GAINS FROM FINANCING THE CONSOLIDATION OF SMALL FRAGMENTED BUSINESSES AND FUNDING TRANSITIONS IN FAMILYOWNED ENTERPRISES THE SPECIALIZED VENTURECAPITAL FUNDS SAY THEY PLAN TO CONCENTRATE ON INDUSTRIES SUCH AS RETAILING FOOD PRODUCTS HEALTH CARE AND MEDIA WHERE WOMEN PLAY MAJOR ROLES OR WHERE GROWTH IS EXPECTED THE LARGEST NUMBERS OF FEMALEOWNED BUSINESSES CURRENTLY ARE FOUND IN RETAILING AND IN BUSINESS AND PROFESSIONAL SERVICES WITH WOMEN CREATING BUSINESSES AT A RECORD RATE THEIR VENTURES OFFER EXTRAORDINARY OPPORTUNITIES FOR INVESTMENT SAYS AARON HARBER CHAIRMAN OF WOMEN'S EQUITY FUND TRADITIONAL FINANCIAL INSTITUTIONS HAVE OVERLOOKED OR MISSED A NUMBER OF EXCEPTIONAL INVESTMENT OPPORTUNITIES OFFERED BY WOMENOWNED BUSINESSES MR HARBER AN ECONOMIC CONSULTANT AND ANNETTE TAYLOR A FORMER BANKER HAVE PUT TOGETHER MORE THAN 55 MILLION IN DEBT AND EQUITY CAPITAL TO INVEST IN WOMENOWNED BUSINESSES BASED IN COLORADO ORGANIZED IN 1992 THEIR FUND COMPLETED ITS FINANCING LAST WEEK IT INTENDS TO BEGIN INVESTING WITHIN THE NEXT 60 TO 90 DAYS MR HARBER SAYS WOMEN HAVE BUILT SIGNIFICANT BUSINESSES IN SPITE OF BEING DENIED ACCESS TO TRADITIONAL SOURCES OF CAPITAL NOTES JUDITH FRANK COFOUNDER OF NEW ERA CAPITAL PARTNERS MANY OF THESE BUSINESSES ARE LEAN WELLMANAGED COMPANIES WITH EXCELLENT POTENTIAL THAT HAVE NOT BEEN OVERPRICED BY THE CAPITAL MARKETS MS FRANK A FORMER WARNER BROS EXECUTIVE TEAMED UP LAST SPRING WITH VENTURE CAPITALISTS RAYMOND DOIG AND ROBERT FLYNN THE TRIO NOW IS TRYING TO RAISE 50 MILLION FOR NEW ERA WHICH WILL INVEST IN WOMENOWNED ENTERPRISES ACROSS THE COUNTRY LAST MONTH SONA WANG MARGARET FISHER AND JERROLD CARRINGTON LAUNCHED INROADS CAPITAL PARTNERS WHICH PLANS TO RAISE 75 MILLION THE FUND PRIMARILY WILL INVEST IN BUSINESSES OWNED BY WOMEN EVEN THOUGH SUCH BUSINESSES HAVE RECEIVED SOME FUNDING FROM TRADITIONAL VENTURE CAPITALISTS MOST WOMEN AND MINORITY ENTREPRENEURS SELDOM FIND THEIR WAY TO THESE FUNDS EXPLAINS MS WANG A GENERAL PARTNER AT BATTERSON JOHNSON & WANG A TRADITIONAL VENTURECAPITAL CONCERN IN CHICAGO THE NEW FUND HAS NO OFFICIAL LINK TO BATTERSON JOHNSON MS WANG SAYS THAT ONE MAJOR PROBLEM IS THE PAUCITY OF FEMALE PARTNERS AT TRADITIONAL VENTURECAPITAL FUNDS EVEN AT THE HANDFUL OF FUNDS WITH FEMALE PARTNERS WOMENOWNED BUSINESSES RARELY GET THE NOD OF THE 16 INVESTMENTS MADE BY BATTERSON JOHNSON SINCE 1988 MS WANG NOTES ONLY ONE WAS A STARTUP FOUNDED BY A WOMAN BUT NOT EVERY FEMALE ENTREPRENEUR SEES A NEED FOR VENTURE FUNDS THAT INVEST EXCLUSIVELY IN WOMEN IN INDUSTRIES SUCH AS COMPUTER TECHNOLOGY AND BIOTECHNOLOGY VENTURES FOUNDED BY WOMEN GET FUNDED WITHOUT GENDER DISCRIMINATION SAYS ANN WINBLAD A SUCCESSFUL SOFTWARE ENTREPRENEUR WHO LATER BECAME A MANAGING PARTNER OF HUMMER WINBLAD VENTURE PARTNERS IN EMERYVILLE CALIF THE VENTURECAPITAL FUND INVESTS ONLY IN SOFTWARE FIRMS IT COULD BE COUNTERPRODUCTIVE TO SEGREGATE WOMEN INTO AN ALLWOMEN'S FUND MS WINBLAD SAYS MOREOVER WOMEN BUSINESS OWNERS THEMSELVES MAY SHY AWAY FROM SUCH FUNDS THE VENTURE CAPITALIST ADDS WOULD I BE ATTRACTED TO A FUND THAT INVESTS ONLY IN WOMEN SHE ASKS IT ISN'T AS APPEALING AS A BROADER FUND WHETHER THE SPECIALIZED FUNDS ULTIMATELY SUCCEED ALSO IS AN OPEN QUESTION ONLY ONE FUND HAS COMPLETED RAISING ITS CAPITAL INROADS AND NEW ERA ADMIT THAT THE TASK WON'T BE EASY BECAUSE INVESTORS ARE WARY OF NEW VENTURECAPITAL FUNDS BUT BOTH FUNDS ARE ENCOURAGED BY THE GROWING DESIRE OF PUBLIC PENSION FUNDS TO INVEST IN ENTERPRISES OWNED BY WOMEN AND MINORITIES MORE PENSION FUNDS UNDER PRESSURE TO MAKE SOCIALLY RESPONSIBLE INVESTMENTS ARE ATTRACTED TO BUSINESSES OWNED BY WOMEN AND MINORITIES BECAUSE SUCH BUSINESSESS HAVE LARGELY BEEN OVERLOOKED IN THE PAST THE OPPORTUNITY TO MAKE MONEY BY INVESTING IN THEM IS SEEN TO BE EVEN GREATER SAYS KELLY MOYLAN A PRINCIPAL AT HAMILTON LANE ADVISERS THE PHILADELPHIA CONCERN EVALUATES ALTERNATIVE INVESTMENTS FOR PUBLIC PENSION FUNDS 9401060131 940106 TECHNOLOGY BRIEF BRISTOLMYERS SQUIBB CO COMPANY FILES TO MARKET EXPERIMENTAL AIDS DRUG BRISTOLMYERS SQUIBB CO NEW YORK SAID IT FILED AN APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR APPROVAL TO MARKET ITS EXPERIMENTAL AIDS DRUG KNOWN AS D4T THE DRUG WHICH BRISTOLMYERS HOPES TO MARKET UNDER THE BRAND NAME ZERIT IS IN THE SAME CHEMICAL FAMILY AS THE THREE ANTIVIRAL DRUGS CURRENTLY APPROVED FOR USE AGAINST HUMAN IMMUNODEFICIENCY VIRUS WHICH CAUSES AIDS BRISTOLMYERS SAID ABOUT 4000 AIDS PATIENTS ALREADY HAVE TAKEN THE DRUG AS PART OF THE COMPANY'S CLINICAL TRIALS MOREOVER NEARLY 11000 MORE PATIENTS HAVE RECEIVED THE DRUG FOR FREE THE DONATIONS WERE PART OF A SPECIAL PROGRAM FOR AIDS PATIENTS WHO HAVEN'T RESPONDED TO THE OTHER DRUGS MAKING THE DRUG AVAILABLE BEFORE ITS APPROVAL BRISTOLMYERS ALREADY SELLS ANOTHER OF THE DRUGS IN THE CHEMICAL CLASS UNDER THE BRAND NAME VIDEX THE OTHER DRUGS ARE AZT SOLD BY WELLCOME PLC OF BRITAIN AND DDI SOLD BY ROCHE HOLDING LTD OF SWITZERLAND 9401060130 940106 WHO'S NEWS AMETECH INC AMETECH INC OKLAHOMA CITY DENNIS SENKOWSKI RESIGNED AS PRESIDENT OF THE HAZARDOUSWASTE MANAGEMENT CONCERN TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID MR SENKOWSKI 49 YEARS OLD COULDN'T BE REACHED FOR COMMENT AMETECH'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CARL B ANDERSON JR WILL SERVE AS INTERIM PRESIDENT UNTIL A SUCCESSOR TO MR SENKOWSKI IS NAMED 9401060129 940106 TECHNOLOGY CONSUMER GROUP SUES TO GET CLINICAL TRIALS ON ELI LILLY DRUG WASHINGTON A CONSUMER HEALTH GROUP SUED THE FOOD AND DRUG ADMINISTRATION TO OBTAIN COMPLETE CLINICAL STUDIES ON THE ELI LILLY & CO HEPATITIS DRUG FIALURIDINE WHICH KILLED FIVE PATIENTS IN TESTS LAST YEAR PUBLIC CITIZEN HEALTH RESEARCH GROUP SAID THE FDA HASN'T DISCLOSED EARLY CLINICAL FINDINGS ON THE DRUG ALSO CALLED FIAU THE DRUG HAD BEEN CONSIDERED A PROMISING REMEDY FOR HEPATITIS B BUT IN LATER CLINICAL TRIALS AT THE NATIONAL INSTITUTES OF HEALTH FIAU CAUSED IRREVERSIBLE LIVER DAMAGE AND DEATHS THE HEALTH GROUP'S DIRECTOR SIDNEY M WOLFE WROTE FDA COMMISSIONER DAVID KESSLER LAST MONTH CLAIMING THIS TRAGEDY COULD HAVE BEEN PREVENTED BUT FOR A COVERUP OF DATA ON LIVER TOXICITY BY ELI LILLY THE LAWSUIT FILED IN US DISTRICT COURT HERE SAID THE FDA DECLINED TO PROVIDE EARLY ANIMAL AND HUMAN STUDY DATA FROM THE TRIALS WHICH THE GROUP HAD REQUESTED INDIANAPOLISBASED LILLY SAID IT AND THE NATIONAL INSTITUTES OF HEALTH STOPPED THE TRIALS LAST YEAR AS SOON AS THEY REALIZED FIAU WAS CAUSING LIVER DAMAGE IN PATIENTS THE FDA DECLINED TO COMMENT THE GROUP'S DEC 9 LETTER TO THE FDA SAID LILLY CONDUCTED EARLY CLINICAL TRIALS ON 16 NORMAL VOLUNTEERS BEFORE THE NIH RESEARCH AND FOUND A CLEAR WARNING SIGNAL ABOUT LIVER TOXICITY THEN THERE IS NO QUESTION THAT ELI LILLY SHOULD HAVE STOPPED THE NIH TRIAL BEFORE THREE OF THE FIVE PATIENTS WHO EVENTUALLY DIED HAD GOTTEN ANY DOSES OF FIAU WROTE DR WOLFE BUT A LILLY SPOKESMAN SAID EARLY FIAU STUDIES HAVE BEEN REVIEWED BY MANY EXPERTS WHO SAY THE LATER TOXICITY WAS NOT PREDICTABLE SEPARATELY STANDARD & POOR'S CORP SAID IT LOWERED ITS OUTLOOK ON LILLY LONGTERM DEBT TO NEGATIVE FROM STABLE BUT AFFIRMED ITS CURRENT RATINGS ON LILLY SENIOR UNSECURED DEBT AND COMMERCIAL PAPER 9401060128 940106 DELTA'S DECEMBER TRAFFIC ROSE ATLANTA DELTA AIR LINES SAID ITS DECEMBER TRAFFIC ROSE 63 TO 666 BILLION REVENUE PASSENGER MILES FROM 626 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO A DECEMBER RECORD OF 61 UP FROM 57 A YEAR EARLIER FOR ALL OF 1993 DELTA SAID IT FLEW 8286 BILLION REVENUE PASSENGER MILES A 29 RISE FROM 805 BILLION A YEAR EARLIER LOAD FACTOR FOR THE YEAR ROSE TO 62 FROM 61 9401060127 940106 WHO'S NEWS BESSEMER GROUP INC BESSEMER GROUP INC NEW YORK FRANK E HELSOM 51 YEARS OLD WAS NAMED AN EXECUTIVE VICE PRESIDENT AT THE BESSEMER TRUST COS SUBSIDIARY OF THIS BANK HOLDING CONCERN SUCCEEDING WARD CAREY WHO LEFT THE COMPANY MR HELSOM WILL ACT AS SENIOR RESIDENT OFFICER OF THE BESSEMER TRUST CO OF FLORIDA UNIT HE WAS CHAIRMAN AND CHIEF INVESTMENT OFFICER FOR TEMPLETON PORTFOLIO ADVISORY INC AND VICE CHAIRMAN OF TEMPLETON INVESTMENT COUNSEL BOTH COMPANIES ARE DIVISIONS OF TEMPLETON WORLDWIDE AN INVESTMENT FIRM IN FORT LAUDERDALE FLA 9401060126 940106 WHO'S NEWS DIME FINANCIAL CORP DIME FINANCIAL CORP WALLINGFORD CONN RALPH D LUKENS WAS NAMED CHAIRMAN OF THIS BANK HOLDING COMPANY AND ITS DIME SAVINGS BANK UNIT BOTH NEW POSITIONS MR LUKENS 64 YEARS OLD HAD BEEN A DIRECTOR OF BOTH COMPANIES HE IS ALSO PROBATE COURT ADMINISTRATOR FOR THE STATE OF CONNECTICUT 9401060125 940106 SANGSTAT STOCK OPTION EXERCISED MENLO PARK CALIF SANGSTAT MEDICAL CORP SAID ITS UNDERWRITERS HAVE FULLY EXERCISED THEIR OPTION TO PURCHASE AN ADDITIONAL 235714 SHARES TO COVER OVERALLOTMENTS IN CONNECTION WITH THE COMPANY'S INITIAL PUBLIC OFFERING DEC 13 THAT BRINGS THE TOTAL NUMBER OF COMMON SHARES SOLD TO 18 MILLION FOR TOTAL PROCEEDS OF 127 MILLION THE BIOPHARMACEUTICALS CONCERN WILL USE THE MONEY FOR RESEARCH AND DEVELOPMENT AND TO FUND CLINICAL TRIALS 9401060124 940106 DYNCORP WINS NASA CONTRACT RESTON VA DYNCORP SAID IT RECEIVED A FIVEYEAR 97 MILLION CONTRACT TO PROVIDE THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WITH AIRCRAFT MAINTENANCE AND MODIFICATION SERVICES DYNCORP A PROFESSIONAL AND TECHNICAL SERVICES COMPANY SAID THAT ABOUT 230 OF ITS EMPLOYEES WILL SERVICE THE AIRCRAFT ASSOCIATED WITH ASTRONAUT SPACEFLIGHT TRAINING THE COMPANY SAID IT ALSO WILL PROVIDE SUPPORT TO OTHER NASA PROGRAMS 9401060123 940106 RAYTHEON AIR FORCE CONTRACT LEXINGTON MA RAYTHEON CO SAID IT RECEIVED A 2193 MILLION CONTRACT FROM THE AIR FORCE TO BUILD 769 MEDIUMRANGE AIRTOAIR MISSILES RAYTHEON SAID 604 OF THE MISSILES WILL GO TO THE AIR FORCE 45 TO THE NAVY 166 TO THE UNITED KINGDOM 12 TO TURKEY AND 42 TO NORWAY THE MISSILES PRODUCED AT RAYTHEON'S FACILITY IN LOWELL MASS ARE THE PRIMARY MEDIUMRANGE AIRTOAIR WEAPON ON AIR FORCE AND NAVY FIGHTER AIRCRAFT 9401060122 940106 SOUTHWEST AIRLINES LATEST TRAFFIC DALLAS SOUTHWEST AIRLINES SAID ITS DECEMBER TRAFFIC ROSE 20 TO 136 BILLION REVENUE PASSENGER MILES FROM 113 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE IN DECEMBER TO 64 FROM 61 A YEAR EARLIER FOR ALL OF 1993 SOUTHWEST SAID IT FLEW 1671 BILLION REVENUE PASSENGER MILES A 21 RISE FROM 1379 BILLION A YEAR EARLIER LOAD FACTOR FOR THE YEAR ROSE TO 68 FROM 65 9401060121 940106 IVAX CORP PLANS TO BUY MCGAW INC IN A STOCK SWAP BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL IVAX CORP IN YET ANOTHER MOVE TOWARD CONSOLIDATION IN THE HEALTHCARE INDUSTRY SAID IT PLANS TO ACQUIRE MCGAW INC A MEDICAL SUPPLY COMPANY FOR ABOUT 440 MILLION IN STOCK MCGAW STOCKHOLDERS WILL RECEIVE 16 A SHARE IN IVAX COMMON STOCK MCGAW HAS 274 MILLION SHARES OUTSTANDING WHILE IVAX HAS 722 MILLION SHARES OUTSTANDING THE TRANSACTION IS EXPECTED TO CLOSE IN THE FIRST OR SECOND QUARTER OF 1994 UNDER THE AGREEMENT MCGAW WILL BECOME A SUBSIDIARY OF IVAX A SPECIALTY CHEMICAL AND PHARMACEUTICALS HOLDING COMPANY BASED IN MIAMI THE MOVE IS THE LATEST IN A SERIES OF MERGERS IN THE HEALTHCARE INDUSTRY IN THE FACE OF CALLS FOR REFORM MEDICAL PROVIDERS SUPPLIERS AND OTHERS ARE JOINING FORCES TO MEET DEMANDS FOR COSTEFFECTIVE CARE PHILLIP FROST CHAIRMAN OF IVAX CALLED MCGAW AN ATTRACTIVE ACQUISITION BECAUSE OF ITS STRONG DISTRIBUTION NETWORK IN HOSPITALS AND NURSING FACILITIES HE NOTED THAT IVAX HAS ESTABLISHED GOOD RELATIONSHIPS WITH PHARMACIES PHYSICIANS CLINICS AND HEALTH MAINTENANCE ORGANIZATIONS WHEN COMBINED WE CAN MARKET A PACKAGE OF DRUG THERAPY PRODUCTS AND SERVICES THAT ADDRESS A BROAD CONTINUUM OF PATIENT NEEDS DR FROST SAID HE SAID TALKS BETWEEN THE COMPANIES STARTED SEVERAL MONTHS AGO AFTER LEHMAN BROTHERS AN ADVISER TO MCGAW APPROACHED IVAX IVAX IS A HOLDING COMPANY WITH SUBSIDIARIES INVOLVED IN SPECIALTY CHEMICALS PHARMACEUTICALS AND MEDICAL DIAGNOSTICS THE COMPANY HAS MADE A SERIES OF ACQUISITIONS MOST NOTABLY THE PURCHASE LAST SUMMER OF JOHNSON PRODUCTS CO THE BLACKOWNED HAIRPRODUCTS PIONEER FOR ABOUT 61 MILLION IN STOCK THROUGH THE FIRST NINE MONTHS OF 1992 IVAX REPORTED EARNINGS OF 593 MILLION OR 82 CENTS A SHARE ON REVENUE OF 4665 MILLION MCGAW BASED IN IRVINE CALIF IS A PROVIDER OF IV THERAPY PRODUCTS AND SERVICES TO HOSPITALS HOME IV THERAPY PROVIDERS SURGICENTERS AND NURSING FACILITIES THE COMPANY WENT PUBLIC EARLIER THIS YEAR NET INCOME THROUGH THE FIRST NINE MONTHS OF 1992 TOTALED 22 MILLION OR NINE CENTS A SHARE ON REVENUE OF 2457 MILLION NEWS OF THE PLANNED ACQUISITION WAS MADE AFTER MARKETS CLOSED YESTERDAY IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING IVAX CLOSED AT 28125 UP 50 CENTS MCGAW CLOSED AT 1075 A SHARE DOWN 125 CENTS IN NASDAQ STOCK MARKET TRADING 9401060120 940106 LAW LEGAL BEAT MORE AND MORE COMPANIES ASK LAW FIRMS TO BID FOR LEGAL WORK BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL COMPANIES ARE INCREASINGLY ASKING OUTSIDE LAW FIRMS TO BID FOR LEGAL WORK A DEVELOPMENT THAT LAWYERS ARE NONE TOO ENTHUSIASTIC ABOUT THAT'S THE UPSHOT OF A NEW SURVEY OF HOW CORPORATIONS ARE USING REQUESTS FOR PROPOSALS TO DOLE OUT LEGAL ASSIGNMENTS MORE THAN ONETHIRD OF THE COMPANIES THAT RESPONDED SAID THEY HAD BEGUN TO USE THIS PROCEDURE WHICH REPRESENTS A MAJOR DEPARTURE FROM COMPANIES' TRADITIONAL APPROACH OF ROUTINELY AWARDING MOST WORK TO REGULAR OUTSIDE COUNSEL ABOUT 80 OF COMPANIES SAID THEY WOULD INCREASE THEIR USE OF PROPOSALS OVER THE NEXT TWO YEARS IN CONTRAST ONLY 29 OF LAWFIRM RESPONDENTS CONSIDERED THEIR CLIENTS' BIDDING PROCEDURE TO BE AN EFFECTIVE OR VERY EFFECTIVE METHOD OF ASSIGNING LEGAL WORK THE SURVEY WAS CONDUCTED BY OF COUNSEL A NEWSLETTER FOR THE LEGAL PROFESSION ABOUT FIVE YEARS AGO SOME INNOVATIVE INHOUSE LAWYERS BEGAN BORROWING THE REQUESTFORPROPOSAL TECHNIQUES USED BY THE CONSTRUCTION AND DEFENSE INDUSTRIES AND ADAPTED IT FOR THEIR OWN USE THEIR PRIMARY GOAL AT THE TIME WAS TO REQUIRE LARGE LAW FIRMS TO COMPETE ON THE BASIS OF PRICE BUT THE GROWING POPULARITY OF THE BIDDING SYSTEM NOW SEEMS TO OWE NEARLY AS MUCH TO STRATEGY CONCERNS AS TO PRICING ISSUES THESE DAYS INHOUSE LAWYERS TYPICALLY TARGET A HANDFUL OF LAW FIRMS AND REQUIRE THEM TO LAY OUT THEIR LEGAL APPROACH AND STAFFING PLANS FOR A PARTICULAR LEGAL MATTER INHOUSE LAWYERS SAY THEY HAVE ADOPTED THE BIDDING PROCESS BECAUSE IT ENCOURAGES OUTSIDE COUNSEL TO COME UP WITH CREATIVE SOLUTIONS AND GIVES THEM INCENTIVE TO KEEP COSTS DOWN IN THE SURVEY 60 OF THE COMPANIES RESPONDING DESCRIBED THEIR USE OF PROPOSALS AS BEING EITHER EFFECTIVE OR VERY EFFECTIVE I LIKE IT BECAUSE IT CREATES COMPETITION WHICH I THINK FOSTERS INNOVATION AND BETTER STRATEGIES SAYS PETER D ZEUGHAUSER OF IRVINE CO ONE OF THE FIRST GENERAL COUNSEL TO TRY BIDDING OUT WORK IT FORCES THE LAW FIRM TO FOCUS ON COST AND STRATEGY EARLY BEFORE THEY GET THE MATTER AND CAUSES A LOT OF BRAINSTORMING EARLY MR ZEUGHAUSER ADDS THAT HIS COMPANY HAS SAVED MILLIONS OF DOLLARS BY BIDDING OUT WORK YOU WOULD BE SHOCKED AT THE COST DISCREPANCIES IN PROPOSALS HE SAYS THERE ARE SOME VERY AGGRESSIVE COST PROPOSALS MADE NOT SURPRISINGLY LAWFIRM PARTNERS ARE LESS EXCITED BY THE DEVELOPMENT SOME RESPONDENTS SAID THEY FELT THAT CLIENTS DIDN'T ASK THE RIGHT QUESTIONS OF THE LAW FIRMS COMPETING FOR THE WORK OR THAT PROPOSALS PROVIDED NO BASIS ON WHICH TO COMPARE QUALITY ONE CONSTANT GRIPE WHICH GENERAL COUNSEL SAY THEY UNDERSTAND IS THAT DRAFTING PROPOSALS IS TIMECONSUMING AND UNREMUNERATIVE LAW FIRMS AFTER ALL ARE DOING ALL THAT BRAINSTORMING FOR FREE SOMETIMES I THINK THE CLIENTS THAT USE THESE SORTS OF THINGS ARE NOT SENSITIVE TO THE AMOUNT OF TIME AND RESOURCES THAT NEED TO BE DEVOTED SAYS JAMES W JONES MANAGING PARTNER OF ARNOLD & PORTER IN WASHINGTON DESPITE SOME RESERVATIONS MR JONES SAYS HE THINKS PROPOSALS ARE PROBABLY A PRETTY GOOD WAY TO SELECT LAWYERS AS LONG AS A CLIENT IS MINDFUL OF NOT ASKING FOR TOO MUCH UP FRONT JULIE SAVARINO A DETROITBASED MARKETING CONSULTANT WHO COSPONSORED THE OF COUNSEL SURVEY SAYS THE RESULTS SHOW THAT THERE'S A LOT OF DENIAL STILL GOING ON BY LAW FIRMS THAT WOULD PREFER TO AVOID THE BIDDING PROCESS OUTSIDE COUNSEL ARE HOPING THIS WILL GO AWAY SHE SAYS MS SAVARINO NOTES THAT LAW FIRMS ARE TREMENDOUSLY INEFFICIENT IN THE WAY THEY RESPOND TO REQUESTS FOR PROPOSALS FOR EXAMPLE FEWER THAN HALF OF THE FIRMS THAT RESPONDED TO THE SURVEY HAVE A CENTRALIZED OFFICE OR FACILITY FOR PREPARING PROPOSALS AND 17 OF THE FIRMS HAVEN'T KEPT TRACK OF THEIR SUCCESS RATE I LOOK BACK WITH A CERTAIN AMOUNT OF NOSTALGIA TO THE OLD DAYS HE ADDS BUT I DON'T THINK THERE'S MUCH USE IN DOING THAT CALIFORNIA DOCTORS WON AN ORDER TEMPORARILY BLOCKING THE STATE'S MEDICAL BOARD FROM PUBLICLY RELEASING INFORMATION ABOUT CURRENT DISCIPLINARY INVESTIGATIONS SUPERIOR COURT JUDGE RONALD ROBIE IN SACRAMENTO RULED THAT PHYSICIANS' PRIVACY RIGHTS OUTWEIGH THE PUBLIC'S INTEREST IN FINDING OUT ABOUT COMPLAINTS THAT HAVE BEEN FILED AGAINST DOCTORS THE STATE'S MEDICAL BOARD HAD IMPLEMENTED NEW RULES IN OCTOBER ALLOWING DISCLOSURE OF ALLEGATIONS AGAINST A DOCTOR BEFORE A FORMAL DISCIPLINARY CHARGE WAS MADE THE BOARD INVESTIGATES COMPLAINTS AGAINST DOCTORS AND IF APPROPRIATE CAN RECOMMEND THAT THE STATE ATTORNEY GENERAL'S OFFICE ISSUE FORMAL CHARGES THE CALIFORNIA MEDICAL ASSOCIATION A PHYSICIANS GROUP SUED TO BLOCK THE NEW RULE THE MEDICAL BOARD ARGUED IN THE CASE THAT PATIENTS NEED TO KNOW ABOUT ALLEGATIONS BEFORE THE ATTORNEY GENERAL'S OFFICE MAKES A DECISION BECAUSE THE CHARGING PROCESS SOMETIMES TAKES MANY MONTHS BUT JUDGE ROBIE COUNTERED IN HIS PRELIMINARY RULING THAT IF A DOCTOR IS POTENTIALLY DANGEROUS TO PATIENTS THE STATE SHOULD SPEED UP THE INVESTIGATIVE PROCESS A FORMAL TRIAL IN THE CASE IS EXPECTED EARLY THIS YEAR BUT A DATE HASN'T BEEN SET PUBLIC DISCLOSURE OF DISCIPLINARY PROCEEDINGS NOT YET RESOLVED IS NOT A SUBSTITUTE FOR PROMPT EVALUATION OF COMPLAINTS PROMPT DECISIONS BY THE ATTORNEY GENERAL AS TO WHETHER TO PROCEED AND TIMELY IMPOSITION OF DISCIPLINE WHEN WARRANTED THE JUDGE WROTE A REFERRAL TO THE ATTORNEY GENERAL IS MUCH LIKE AN ARREST WITHOUT A CONVICTION CANDIS COHEN A SPOKESWOMAN FOR THE BOARD DISAGREED WITH THE DECISION NOTING THAT ARRESTS GENERALLY ARE MATTERS OF PUBLIC RECORD WHY SHOULD CONSUMERS BEAR THE BURDEN OF A LEGAL SYSTEM THAT DOESN'T OPERATE AS QUICKLY AS WE'D ALL LIKE MS COHEN SAID EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9401060119 940106 IN THE LAB DNA EXPERT PEERS AT CROOKS SOLDIERS LITTLE BIGHORN BONES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GERMANTOWN MD IN A LABORATORY THE SIZE OF A KITCHENETTE NEXT TO A REFRIGERATOR FULL OF RAPISTS MURDERERS AND GULF WAR SOLDIERS MARK WADHAMS IS PLAYING WITH LIFE HE IS MAKING COPIES OF DNA OR DEOXYRIBONUCLEIC ACID THE STRING OF MOLECULES THAT COMPRISE GENES AND DISTINGUISH ONE HUMAN FROM ANOTHER THE PEOPLE IN HIS FRIDGE ARE IN DNA FORM IN MINIATURE PLASTIC TESTTUBES HELD BY RACKS IN FLUORESCENT RAINBOW COLORS ONE OF THE PEOPLE MR WADHAMS WON'T SAY WHICH IS IN A THERMOCYCLER A MACHINE WITH CONTROLLED HEAT AND PRESSURE THAT CHEMICALLY DUPLICATES SEGMENTS OF DNA PRODUCING ONE BILLION COPIES OF A SEGMENT IN JUST 2 1/2 HOURS BUT THE 33YEAROLD MOLECULAR BIOLOGIST ISN'T TRYING TO MAKE HIS OWN HUMAN WORKING FOR ZENECA INC'S CELLMARK DIAGNOSTICS LAB HE'S EXPERIMENTING WITH A NEW DNA IDENTIFICATION TECHNOLOGY THAT MAY SOON BE USED TO SOLVE CRIMES AND HISTORICAL RIDDLES WHERE THE PHYSICAL EVIDENCE WAS SO DEGRADED THAT IT COULDN'T BE IDENTIFIED USING STANDARD DNA TESTING SO FAR MR WADHAMS HAS USED THE TECHNOLOGY LICENSED FROM BAYLOR COLLEGE OF MEDICINE IN HOUSTON TO IDENTIFY DECIMATED CORPSES FROM THE GULF WAR THE ARMED FORCES INSTITUTE OF PATHOLOGY SENT HIM SAMPLES FROM REMAINS OF SOLDIERS WHO HAD BEEN BLOWN UP AND FROM SOME THAT WERE SUBMERGED FOR SIX WEEKS IN THE PERSIAN GULF AFTER THEIR PLANE WENT DOWN MR WADHAMS HAD TO SAY WHICH SAMPLES CAME FROM THE SAME BODY SO THE CORRESPONDING REMAINS COULD BE PUT INTO INDIVIDUAL BODY BAGS INSTEAD OF ONE MASS GRAVE MR WADHAMS ISN'T FAZED BY THE GRISLY DETAILS HIS FATHER WAS A POLICEMAN AND HE HIMSELF IS AN AVID FAN OF HORROR MYSTERY WRITERS STEPHEN KING AND DEAN R KOONTZ YOU WORK EVERYTHING ALMOST LIKE A MYSTERY KIND OF THING IT HAS THAT KIND OF INTRIGUE MR WADHAMS SAYS YOU HAVE A RESPONSIBILITY TO GET THE RIGHT ANSWER THE DNA IN THE PERSIAN GULF SAMPLES HAD BEEN DEGRADED BY BACTERIA WATER AND HEAT LEAVING MR WADHAMS WITH SNIPPETS OF THE NECKLACELIKE STRAND OF MOLECULES INSTEAD OF ENTIRE STRANDS NEEDED FOR CONVENTIONAL DNA TESTING HE COPIED OR AMPLIFIED THE DNA IN THE THERMOCYCLER AND THEN ANALYZED IT TO SEE WHERE IT CAME FROM SCIENTISTS ALREADY IDENTIFY DNA USING A METHOD CALLED DQ ALPHA NAMED FOR THE SET OF GENETIC MARKERS FOUND ON EVERYONE'S DNA EACH PERSON HAS ONE OF 21 POSSIBLE COMBINATIONS OF DQ ALPHA MARKERS SOME MORE RARE THAN OTHERS THE TROUBLE WITH THE METHOD IS THAT IT'S NOT PRECISE THE ODDS THAT TWO PEOPLE WILL HAVE THE SAME COMBINATION OF DQ ALPHA MARKERS RANGE FROM 1 TO 20 BAYLOR'S METHOD HOWEVER USES BETWEEN 12 AND 20 GENETIC MARKERS KNOWN AS SHORT TANDEM REPEATS OR STRS EACH MARKER CAN VARY FROM ONE PERSON TO THE NEXT AND THERE ARE ANYWHERE FROM 21 TO ABOUT 256 POSSIBLE VERSIONS OF EACH MARKER THE ODDS THAT TWO PEOPLE WILL HAVE THE SAME FOUR STR MARKERS ARE ABOUT ONE IN FOUR MILLION THE ODDS THAT THEY'LL HAVE THE SAME EIGHT STR MARKERS ARE ONE IN 25 BILLION BASED ON TODAY'S WORLDWIDE POPULATION OF ABOUT FIVE BILLION THAT MEANS THE STR METHOD CAN BE USED TO DETERMINE VIRTUALLY CONCLUSIVELY WHETHER DNA FOUND AT THE SCENE OF A CRIME CAME FROM A PARTICULAR SUSPECT THAT COULD HAVE STRENGTHENED THE CASE FOR LAWRENCE PRESLEY THE HEAD OF THE DNA UNIT AT THE FEDERAL BUREAU OF INVESTIGATION MR PRESLEY ANALYZED DRIED SALIVA FOUND ON THE BACK OF AN ENVELOPE USED TO MAIL TO THE NEW YORK TIMES A LETTER CLAIMING CREDIT FOR THE WORLD TRADE CENTER BOMBING THIS YEAR USING THE DQ ALPHA METHOD MR PRESLEY TESTIFIED IN THE CURRENT FEDERALCOURT TRIAL THAT THE SALIVA COULD HAVE ONLY COME FROM 2 TO 3 OF THE US POPULATION AND THAT IT MATCHED THE DNA FROM ONE OF THE SUSPECTS CHEMICAL ENGINEER NIDAL AYYAD THAT EVIDENCE ISN'T CONCLUSIVE IT'S TECHNICALLY POSSIBLE THE SALIVA CAME FROM SOMEONE ELSE IT'S NEVER A POSITIVE ID MR PRESLEY CONCEDED IN AN INTERVIEW INSTEAD THE FBI'S DNA EVIDENCE MAY HAVE BEEN GOOD CORROBORATION INVESTIGATORS HAVE CONNECTED MR AYYAD TO THE BOMBING WITH OTHER EVIDENCE IF THE FBI HAD USED STR TESTING IT MIGHT HAVE PROVED A MORE POWERFUL CONNECTION BETWEEN THE SALIVA AND THE SUSPECT WITH THE ODDS MILLIONS OR BILLIONS TO ONE THAT HE WAS THE SOURCE CELLMARK DOESN'T USE STR TESTING TO SOLVE CRIMES YET BECAUSE IT HAS TO SCIENTIFICALLY VALIDATE THE METHOD BY USING IT REPEATEDLY ON DIFFERENT TYPES OF PHYSICAL EVIDENCE INCLUDING HAIR BLOOD BONE AND MUSCLE TISSUE THEN THE RESULTS MUST BE PUBLISHED IN A PEERREVIEWED JOURNAL WITHOUT SUCH VALIDATION THE METHOD WOULDN'T BE DEEMED GOOD ENOUGH FOR USE IN COURT CELLMARK HOPES TO USE STR TESTING FOR FORENSIC CASES BY SPRING CRIMESOLVERS CAN HARDLY WAIT CELLMARK ESTIMATES THAT ABOUT 20 OF THE PHYSICAL EVIDENCE IT GETS IN POLICE CASES CAN'T BE ANALYZED USING CURRENT METHODS BECAUSE THERE ISN'T ENOUGH EVIDENCE TO WORK WITH SOME OF THESE COULD BE ANALYZED USING THE STR MARKERS AT THE VERY LEAST STR IDENTIFICATION WOULD GIVE PROSECUTORS ANOTHER PIECE OF EVIDENCE TO HELP CONVICT A SUSPECT ROCKNE HARMON A DEPUTY DISTRICT ATTORNEY IN ALAMEDA COUNTY CALIF SAYS STRS COULD GIVE HIM A MORE POWERFUL LINK IN RAPE CASES WHERE THERE WASN'T MUCH SEMEN TO RECOVER HISTORICAL RIDDLES THE STR METHOD MAY ALSO GIVE RESEARCHERS A BETTER SHOT AT SOLVING HISTORICAL RIDDLES CELLMARK SAYS THAT BASED ON ITS PRELIMINARY RESEARCH THE STR PORTIONS OF DNA MAY RESIST DEGRADATION BETTER THAN THE DQ ALPHA PORTION THAT MEANS IT MAY BE A BETTER METHOD FOR TESTING VERY OLD SAMPLES FOR INSTANCE IT MIGHT BE USED TO ANALYZE DNA IN THE BLOOD ON THE SHIRT PRESIDENT LINCOLN WAS WEARING WHEN HE WAS ASSASSINATED BY DOING THAT RESEARCHERS MAY BE ABLE TO DETERMINE WHETHER MR LINCOLN SUFFERED FROM MARFAN SYNDROME AS HISTORIANS SUSPECT MARFAN SYNDROME IS A CONNECTIVE TISSUE DISORDER LINKED TO HEART AND VISUAL ABNORMALITIES AND ABNORMALLY LONG LEGS AND FINGERS BUT NO DNA LASTS FOREVER LAST YEAR MR WADHAMS TRIED TO ANALYZE DNA FROM THE BONES FOUND AT CUSTER'S LAST STAND AT LITTLE BIGHORN MR WADHAMS RECEIVED A SAMPLE OF THE 118YEAROLD BONES IN THE MAIL AND PULVERIZED THEM WITH A MORTAR AND PESTLE YOU CAN ALSO USE COFFEE GRINDERS HE CONFIDES BUT SAYS HE HAS NEVER DONE SO HIMSELF BUT THAT PART OF HISTORY WILL STAY IN THE DOMAIN OF SPECULATING SCHOLARS AND HOLLYWOOD HE COULDN'T GET ANY DNA AT ALL OUT OF THE BONES HE WAS TOO OLD MR WADHAMS SAYS 9401060118 940106 THE ASSAULT ON ASSAULT WEAPONS BY JAMES BOVARD PRESIDENT CLINTON IS BACKING LEGISLATION THAT COULD LEAD TO THE CONFISCATION OF TENS OF MILLIONS OF PRIVATE RIFLES SHOTGUNS AND PISTOLS THOUGH THE BILL MR CLINTON SUPPORTS PURPORTEDLY TARGETS ONLY ASSAULT WEAPONS THE LOOSE DEFINITIONS AND EXPANSIVE GOALS OF THE ANTIGUN LOBBY WILL ALMOST CERTAINLY LEAD TO A VAST INCREASE IN THE NUMBER OF WEAPONS TO BE BANNED IN NOVEMBER THE SENATE PASSED AN AMENDMENT TO ITS CRIME BILL THAT WOULD BAN OWNERSHIP OF ASSAULT WEAPONS AND A HOUSESENATE CONFERENCE IN THE COMING WEEKS WILL DECIDE THE PROVISION'S FATE MR CLINTON ATTORNEY GENERAL JANET RENO AND FBI DIRECTOR LOUIS FREEH HAVE ALL COME OUT IN FAVOR OF BANNING ASSAULT WEAPONS OTHERS ARE JUMPING ON THE BANDWAGON GOV WILLIAM WELD HAS ENDORSED A BAN IN MASSACHUSETTS AND GOV MARIO CUOMO IS CALLING A SPECIAL SESSION OF THE NEW YORK STATE LEGISLATURE ON MARTIN LUTHER KING DAY FOR THE PURPOSE OF CONSIDERING BANNING ASSAULT WEAPONS IN RECENT YEARS THREE STATES AND DOZENS OF CITIES AND COUNTIES HAVE BANNED OR SEVERELY RESTRICTED THE OWNERSHIP OF ASSAULT WEAPONS ACCORDING TO THE DEFENSE DEPARTMENT AN ASSAULT WEAPON IS A RIFLE THAT IS CAPABLE OF BOTH AUTOMATIC MACHINEGUN FIRE AND SEMIAUTOMATIC ONESHOTPERTRIGGERPULL FIRE BUT MOST BANS FOCUS ON SEMIAUTOMATIC RIFLES AND MEDIA COVERAGE ROUTINELY CONFUSES SEMIAUTOMATIC WITH AUTOMATIC MACHINE GUNS OWNERSHIP OF WHICH HAS BEEN SEVERELY RESTRICTED BY THE FEDERAL GOVERNMENT SINCE 1934 AS A RESULT OF MUDDLED DEFINITIONS OF ASSAULT WEAPONS BANS ON SUCH GUNS HAVE BEEN EXTREMELY ARBITRARY IN 1989 CALIFORNIA BANNED THE SALE OR TRANSFER OF ASSAULT WEAPONS AND REQUIRED ALL EXISTING OWNERS TO REGISTER THEIR GUNS THE CALIFORNIA LAW WAS VERY POORLY DRAFTED CALIFORNIA ATTORNEY GENERAL DAN LUNGREN LATER ADMITTED THAT SOME OF THE GUN MODELS BANNED BY THE CALIFORNIA LEGISLATURE DID NOT EXIST SAN FRANCISCO LAWYER DON KATES SUGGESTED THAT LEGISLATORS IN COMPILING THE LIST OF PROHIBITED GUNS APPEARED TO HAVE SELECTED FROM SOME PICTURE BOOK OF MISLABELED FIREARMS THEY THOUGHT LOOKED EVIL THE VAST MAJORITY OF CALIFORNIANS DID NOT REGISTER THEIR GUNS THUS THE LAW MAY HAVE CREATED AS MANY AS 300000 NEW CRIMINALS ACCORDING TO MICHAEL MCNULTY CHAIRMAN OF THE PRIVATE CALIFORNIA ORGANIZATION FOR PUBLIC SAFETY WE ESTIMATE THAT HUNDREDS OF CITIZENS HAVE BEEN ARRESTED AND PROSECUTED FOR FIREARMS NOT ON THE REGULATED LIST IN NUMEROUS CASES POLICE CARRYING OUT SEARCHES OF PEOPLE'S HOMES HAVE SEIZED WEAPONS THEY ALLEGE TO BE ILLEGAL ASSAULT WEAPONS AND THEN HAVE REFUSED TO RETURN THEM EVEN AFTER RECEIVING PROOF THAT THE GUNS ARE NOT LEGALLY BANNED UNDER CALIFORNIA LAW THE ASSAULT WEAPON BAN WAS ENACTED AFTER POLITICIANS CLAIMED THAT SUCH GUNS WERE A GRAVE PUBLIC MENACE BUT TORREY JOHNSON OF THE CALIFORNIA BUREAU OF FORENSIC SERVICES CONCLUDED IN A CONFIDENTIAL REPORT IT IS OBVIOUS TO THOSE OF US IN THE STATE CRIME LAB SYSTEM THAT THE PRESUMPTION THAT ASSAULT WEAPONS' CONSTITUTE A MAJOR THREAT IN CALIFORNIA IS ABSOLUTELY WRONG SIMILAR TRAVESTIES HAVE HAPPENED ELSEWHERE IN 1989 THE DENVER CITY COUNCIL BANNED DENVER RESIDENTS FROM OWNING OR SELLING SOCALLED ASSAULT WEAPONS RESIDENTS COULD APPLY FOR POLICE PERMISSION TO CONTINUE POSSESSING WEAPONS OBTAINED PRIOR TO THE DATE OF THE BAN DENVER EVEN BANNED RESIDENTS FROM USING ASSAULT WEAPONS FOR SELFDEFENSE IN THEIR OWN HOMES AS IF GOVERNMENT OFFICIALS SOUGHT TO PREVENT CITIZENS FROM HAVING AN UNFAIR ADVANTAGE OVER BURGLARS OR RAPISTS WHO BREAK INTO THEIR HOMES IN FEBRUARY OF LAST YEAR A LOCAL COURT STRUCK DOWN THE LAW AS UNCONSTITUTIONALLY VAGUE AND A VIOLATION OF THE STATE CONSTITUTION IN 1990 NEW JERSEY BANNED OWNERSHIP OF SOCALLED ASSAULT RIFLES GOV JIM FLORIO DECLAIMED THERE ARE SOME WEAPONS THAT ARE JUST SO DANGEROUS THAT SOCIETY HAS A RIGHT AND THE OBLIGATION EVEN TO TAKE THOSE WEAPONS OUT OF CIRCULATION MR CLINTON PRAISED THE NEW JERSEY LAW AS A MODEL FOR THE NATION BUT THE BAN WAS SO EXTENSIVE THAT EVEN SOME MODELS OF BB GUNS WERE OUTLAWED JOSEPH CONSTANCE DEPUTY CHIEF OF THE TRENTON NJ POLICE DEPARTMENT TOLD THE SENATE JUDICIARY COMMITTEE IN AUGUST OF LAST YEAR SINCE POLICE STARTED KEEPING STATISTICS WE NOW KNOW THAT ASSAULT WEAPONS ARE/WERE USED IN AN UNDERWHELMING 026 OF 1 OF CRIMES IN NEW JERSEY THIS MEANS THAT MY OFFICERS ARE MORE LIKELY TO CONFRONT AN ESCAPED TIGER FROM THE LOCAL ZOO THAN TO CONFRONT AN ASSAULT RIFLE IN THE HANDS OF A DRUGCRAZED KILLER ON THE STREETS NEW JERSEY HAS AN ESTIMATED 300000 OWNERS OF ASSAULT WEAPONS EACH POTENTIALLY FACING UP TO FIVE YEARS IN PRISON FOR VIOLATING THE STATE LAW IF THEY DO NOT TURN IN THEIR GUNS NEW YORK CITY REQUIRED RIFLE OWNERS TO REGISTER THEIR GUNS IN 1967 CITY COUNCIL MEMBERS AT THAT TIME PROMISED THAT THE REGISTRATION LISTS WOULD NOT BE USED FOR A GENERAL CONFISCATION OF LAWABIDING CITIZENS' WEAPONS ROUGHLY ONE MILLION NEW YORKERS WERE OBLIGED TO REGISTER WITH POLICE IN 1991 MAYOR DAVID DINKINS RAILROADED A BILL THROUGH THE CITY COUNCIL BANNING POSSESSION OF MANY SEMIAUTOMATIC RIFLES CLAIMING THAT THEY WERE ACTUALLY ASSAULT WEAPONS SCORES OF THOUSANDS OF RESIDENTS WHO HAD REGISTERED IN 1967 AND SCRUPULOUSLY OBEYED THE LAW WERE STRIPPED OF THEIR RIGHT TO OWN THEIR GUNS POLICE ARE NOW USING THE REGISTRATION LISTS TO CRACK DOWN ON GUN OWNERS POLICE SENT OUT THREATENING LETTERS AND POLICEMEN HAVE GONE KNOCKING ON DOORS DEMANDING THAT PEOPLE SURRENDER THEIR GUNS ACCORDING TO STEPHEN HALBROOK A LAWYER AND AUTHOR OF TWO BOOKS ON GUN CONTROL MR HALBROOK NOTES THAT THE NEW YORK BAN PROHIBITS SO MANY GUNS THAT THEY DON'T EVEN KNOW HOW MANY ARE PROHIBITED AND THAT THE LAW IS SO VAGUE THAT THE CITY POLICE ARBITRARILY APPLY IT TO ALMOST ANY GUN OWNER JEROLD LEVINE COUNSEL TO THE NEW YORK RIFLE ASSOCIATION OBSERVED TENS OF THOUSANDS OF NEW YORK VETERANS WHO KEPT THEIR RIFLES FROM WORLD WAR II OR THE KOREAN WAR HAVE BEEN TURNED INTO FELONS AS A RESULT OF THIS LAW EVEN THE PUNY TARGET SHOOTING GUNS IN CONEY ISLAND ARCADES HAVE BEEN BANNED UNDER THE NEW LAW BECAUSE THEIR MAGAZINES HOLD MORE THAN FIVE ROUNDS MANY LOCAL AND STATE ASSAULT WEAPONS LAWS AS WELL AS THE BILL THAT THE SENATE PASSED IN NOVEMBER CONTAIN PROVISIONS APPARENTLY WRITTEN BY PEOPLE SPOOKED AFTER WATCHING TOO MANY ARNOLD SCHWARZENEGGER MOVIES THE SENATE BILL BANS GUNS THAT HAVE GRENADELAUNCHER AND BAYONETMOUNT ATTACHMENTS BUT NEITHER THE JUSTICE DEPARTMENT NOR THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS COULD PROVIDE A SINGLE EXAMPLE OF EITHER GRENADE LAUNCHERS OR BAYONETS ATTACHED TO ASSAULT WEAPONS BEING USED IN ANY VIOLENT CRIME IN THE US GRENADE LAUNCHERS WERE USED BY THE FBI IN THEIR FINAL ASSAULT IN WACO BUT THE FBI WOULD NOT BE AFFECTED BY THE BILL THE ASSAULTWEAPON AMENDMENT SPONSORED BY SEN DIANNE FEINSTEIN D CALIF IS WIDELY PERCEIVED AS A FOOT IN THE DOOR TO FAR MORE EXTENSIVE GUN BANS WHEN A CHRISTIAN SCIENCE MONITOR REPORTER ASKED MS FEINSTEIN WHY HER AMENDMENT DID NOT BAN ALL SEMIAUTOMATIC GUNS SHE REPLIED WE COULDN'T HAVE GOTTEN IT THROUGH CONGRESS REP CHARLES SCHUMER D NY DECLARED WE'LL BE CARRYING THE FEINSTEIN BANNER IN THE HOUSE WHEN IT COMES TO SEMIAUTOMATIC WEAPONS IF ALL SEMIAUTOMATIC GUNS WERE BANNED THE FEDERAL GOVERNMENT COULD CONFISCATE 35 MILLION WEAPONS THE CLINTON ADMINISTRATION HAS TENTATIVELY EMBRACED A PROPOSAL TO REQUIRE ALL GUN OWNERS TO BE LICENSEDWHICH COULD BE A PRELUDE TO THE TYPE OF GUN CONFISCATIONS NOW GOING ON IN NEW YORK ASSAULT WEAPONS LAWS RESEMBLE HATE SPEECH LAWS HATE SPEECH LAWS USUALLY BEGIN BY TARGETING A FEW WORDS THAT ALMOST NO ONE APPROVES ONCE THE SYSTEM FOR CONTROLLING AND PUNISHING HATE SPEECH IS PUT INTO PLACE THERE IS LITTLE OR NOTHING TO STOP IT FROM EXPANDING TO PUNISH MORE AND MORE TYPES OF EVERYDAY SPEECH SIMILARLY ONCE AN ASSAULT WEAPONS LAW IS ON THE BOOKS THERE IS LITTLE TO PREVENT POLITICIANS FROM VASTLY INCREASING THE NUMBER OF WEAPONS BANNED UNDER THE LAW THE MAIN EFFECT OF BANNING ASSAULT WEAPONS IS TO GIVE GOVERNMENT AN EXCUSE TO ARREST OR IMPRISON MILLIONS OF AMERICANS WHILE DOING LITTLE OR NOTHING TO REDUCE CRIME AMERICA HAS A LIMITED NUMBER OF POLICE AND POLITICIANS MUST DECIDE WHO THE REAL PUBLIC ENEMIES ARE IF MR CLINTON SIGNS AN ASSAULT WEAPONS BAN IT COULD SIGNAL THE START OF AN ATTACK ON GUN OWNERS' CONSTITUTIONAL RIGHTS THAT COULD FAR SURPASS ALL PREVIOUS GUN BANS MR BOVARD IS THE AUTHOR OF THE FORTHCOMING LOST RIGHTS THE DESTRUCTION OF AMERICAN LIBERTY ST MARTIN'S APRIL 1994 9401060117 940106 ECONOMY MODEST INTERESTRATE RISE IS SEEN BY ADMINISTRATION WASHINGTON TREASURY SECRETARY LLOYD BENTSEN SAID THE ADMINISTRATION FORESEES SOME MODEST RISE IN SHORTTERM INTEREST RATES AT SOME POINT THOUGH HE WOULDN'T SPECULATE ABOUT THE TIMING OF ANY MOVE BY THE FEDERAL RESERVE I MUST SAY THAT IN OUR PROJECTIONS WE ASSUMED THERE WOULD BE A MODEST INCREASE IN SHORTTERM INTEREST RATES HE SAID BUT I MUST SAY ON THE OTHER SIDE OF IT THAT INFLATION HAS BEEN EVEN BETTER CONTAINED THAN WE ANTICIPATED AND THAT HAS BEEN VERY ENCOURAGING 9401060116 940106 EXSEC OFFICIAL NAMED TO POST BY PRUDENTIAL EMBATTLED BROKERAGE FIRM SELECTS LEE SPENCER 50 TO BE INTERIM COUNSEL BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC IN A MOVE TO SHORE UP ITS EMBATTLED LEGAL DEPARTMENT NAMED A FORMER SECURITIES AND EXCHANGE COMMISSION OFFICIAL TO BE INTERIM GENERAL COUNSEL THE APPOINTMENT OF LEE B SPENCER JR 50 YEARS OLD COMES LESS THAN A WEEK AFTER PRUDENTIAL RELIEVED LOREN SCHECHTER OF HIS DUTIES AS GENERAL COUNSEL THE INTERIM REPLACEMENT IS A STOPGAP MEASURE FOR PRUDENTIAL WHICH WANTED TO ACT QUICKLY TO BRING IN AN OUTSIDE EXECUTIVE NOT INVOLVED IN ITS LIMITEDPARTNERSHIP MESS THE MOVE COMES AT A SENSITIVE TIME FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT THE BIG BROKERAGE FIRM HAS BEGUN REVIEWING CLAIMS FORMS FROM AS MANY AS 340000 INVESTORS LOOKING TO TAP INTO A 330 MILLION RESTITUTION FUND SET UP BY PRUDENTIAL AS PART OF AN OCTOBER SETTLEMENT WITH FEDERAL AND STATE REGULATORS REGULATORS HAD ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING ABOUT 8 BILLION OF PARTNERSHIPS TO INVESTORS IN THE 1980S THE APPOINTMENT ALSO COMES AS FEDERAL PROSECUTORS EXAMINE WHAT ROLE PRUDENTIAL'S LEGAL DEPARTMENT WHICH MR SCHECHTER HEADED HAD IN REVIEWING AND APPROVING PROSPECTUSES SALES DOCUMENTS AND OTHER MARKETING MATERIALS INVOLVED IN SELLING THE PARTNERSHIPS PEOPLE FAMILIAR WITH THE MATTER SAID MR SPENCER A PARTNER AT GIBSON DUNN & CRUTCHER HAS MORE THAN SEVEN YEARS OF EXPERIENCE AT THE SEC INCLUDING STINTS AS DIRECTOR OF THE AGENCY'S DIVISION OF CORPORATE FINANCE AND CHIEF COUNSEL FOR ITS INVESTMENTMANAGEMENT DIVISION HE'S AN OUTSTANDING LAWYER WHO IS VERY KNOWLEDGABLE ABOUT THE FEDERAL SECURITIES LAWS SAID HARVEY PITT A NEW YORK SECURITIES LAWYER BUT MR SPENCER'S SEC EXPERIENCE LARGELY CENTERED ON THE PUBLICOFFERING AREA NOT THE REGULATORY ARENA FOR BROKERAGE FIRMS AND STEPPING INTO THE ROLE ON AN INTERIM BASIS PROVIDES SEVERAL CHALLENGES ONE OF THE POTENTIAL PROBLEMS IS THAT MR SPENCER WILL BE PERCEIVED AS ONLY A CARETAKER WHO HAS NO REAL PERMANENT POWER DESPITE HAVING TO MAKE DECISIONS WITH LONGTERM RAMIFICATIONS FOR THE FIRM SECURITIES LAWYERS SAID HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE TOOK PAINS TO PLAY DOWN THOSE RISKS LEE WILL HAVE FULL AUTHORITY HERE MR SIMMONS SAID IN AN INTERVIEW HE WILL STEP IN AND TRY TO BRING HIMSELF UP TO SPEED ON THE EVENTS AT HAND PARTICULARLY THE REGULATORY SETTLEMENT MR SIMMONS SAID PRUDENTIAL WILL NAME A PERMANENT SUCCESSOR TO MR SCHECHTER WITHIN THREE MONTHS MR SIMMONS SAID AMONG THE CANDIDATES WILL BE MR SPENCER PEOPLE FAMILIAR WITH THE MATTER SAID ANOTHER POTENTIAL CANDIDATE IS EDWARD FLEISCHMAN A FORMER SEC COMMISSIONER WHO RESIGNED TWO YEARS AGO AFTER SIX YEARS ON THE PANEL MR FLEISCHMAN DECLINED TO COMMENT IN A STATEMENT MR SIMMONS SAID THAT MR SPENCER'S APPOINTMENT WILL SEND A STRONG MESSAGE THAT WE ARE COMMITTED TO MAINTAINING THE HIGHEST ETHICAL STANDARDS THROUGHOUT THE FIRM AND HAVING THE BEST COMPLIANCE PROGRAMS IN THE INDUSTRY AND THAT WE WILL CONTINUE TO RESOLVE OUR UNFORTUNATE PARTNERSHIP LEGACY FAIRLY AND EXPEDITIOUSLY IN HIS NEW POST MR SPENCER WILL MANAGE THE FIRM'S DAYTODAY LEGAL AND COMPLIANCE ACTIVITIES AND OVERSEE THE REPARATIONS FUND HE WILL CONTROL A STAFF OF 87 LAWYERS THAT HAS BEEN CRITICIZED BY SOME AS NOT MOVING QUICKLY ENOUGH TO SETTLE BIG PARTNERSHIP CASES WITH INVESTORS AS OTHER MAJOR WALL STREET BROKERAGE FIRMS DID AMONG THE FIRM'S GOALS MR SPENCER SAID IN AN INTERVIEW IS FAIRNESS TO CUSTOMERS AND FORMER CUSTOMERS AND CAREFULLY LISTENING TO CUSTOMER CONCERNS HE ADDED WE ARE GOING TO ADDRESS LITIGATION STRATEGY WITH THE GREATEST CARE MR SCHECHTER FOR ONE HAS BEEN BLAMED BY SOME PLAINTIFFS' LAWYERS FOR HARDBALL TACTICS TAKEN BY PRUDENTIAL IN HANDLING MANY ARBITRATION AND COURT CASES INVOLVING THE PARTNERSHIPS IN AN INTERVIEW MR SCHECHTER SAID THE FIRM IS COMMITTED TO ACTING IN AN ENTIRELY FAIR FASHION WITH REGARD TO CLAIMS AGAINST IT MR SCHECHTER'S NEW ROLE WILL BE TO PROVIDE SENIOR COUNSEL TO JOHN MURRAY PRUDENTIAL SECURITIES' DIRECTOR OF CORPORATERISK MANAGEMENT LOREN HAS GOT AN AWFUL LOT IN HIS HEAD MR SIMMONS SAID HE'S NOT SOMEONE WE WANT TO LET GO HERE HE'LL PROVIDE COUNSEL WE NEED GOING AHEAD BUT MR SCHECHTER WON'T PROVIDE DIRECT COUNSEL ON THE REGULATORY REPARATIONS FUND MATTER MR SIMMONS SAID THE FUND IS LEE'S PURVIEW 9401060115 940106 PEPPERAND SALT THEY TYPIFY A THOROUGHBRED PLUS WINGTIPS BLACK AND CORDOVAN CLOTHES MAKE THE MAN A GOOD DEAL POORER THIS SMALL ASSIST I FEED IT AND THEN FORGET TO READ IT 9401060114 940106 BOTTOMLINE ACTIVISM OF CALPERS PAYS OFF NEW STUDY INDICATES BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AT LAST SEEMS TO HAVE DISCOVERED HOW TO PROFIT FROM SHAREHOLDER ACTIVISM FOCUS ON THE BOTTOM LINE IT MAY SOUND LIKE OLDFASHIONED INVESTMENT SENSE BUT THE 80 BILLION CALIFORNIA FUND THE NATION'S LARGEST PENSION PLAN FOR STATE EMPLOYEES ONLY REVAMPED ITS SHAREHOLDERRIGHTS CRUSADE IN 1990 TO FOCUS ON ENSURING BETTER OPERATING PERFORMANCE AT COMPANIES IN WHICH IT INVESTS A NEW STUDY ONE OF THE FIRST REPORT CARDS EVER OF THE LONGTERM EFFECTIVENESS OF CALPERS'S CORPORATEGOVERNANCE ACTIVITIES INDICATES THAT THE FUND'S BACKTOBASICS APPROACH IS PAYING OFF SHARES OF COMPANIES THE FUND HAS PRESSURED TO IMPROVE OPERATING PERFORMANCE ARE HANDILY BEATING THE STANDARD & POOR'S 500 INDEX ACCORDING TO THE STUDY BY WILSHIRE ASSOCIATES INC A PENSIONCONSULTING FIRM BEFORE THE 1990 STRATEGY CHANGE CALPERS'S ACTIVISM CONSISTED OF RAPPING CORPORATE KNUCKLES OVER POISON PILLS AND OTHER ANTITAKEOVER DEVICES UNDER THAT APPROACH THE INVESTMENT PERFORMANCE OF A MAJORITY OF CALPERS'S TARGETS EITHER CONTINUED TO UNDERPERFORM OR ACTUALLY DETERIORATED ONCE THE FUND PRODDED THEM TO SHAPE UP THE DATA SHOW SINCE CALPERS STARTED BECOMING INVOLVED IN LONGTERM OPERATING PERFORMANCE ISSUES THEIR SABERRATTLING IS PRODUCTIVE SAYS STEPHEN NESBITT A SENIOR VICE PRESIDENT AT WILSHIRE WHO WROTE THE STUDY ALTHOUGH CALPERS IS A CLIENT OF WILSHIRE ACCOUNTING FOR ABOUT 1 OF THE CONSULTING FIRM'S REVENUE IT WASN'T INVOLVED IN FINANCING THE STUDY TAKE THE EXAMPLE OF SEARS ROEBUCK & CO ONE OF THE FIRST COMPANIES TO RECEIVE CALPERS'S REVISED TREATMENT THE COMPANY'S STOCK TRAILED THE S&P 500 INDEX BY A CUMULATIVE 102 PERCENTAGE POINTS ON A TOTALRETURN BASIS INCLUDING PRICE CHANGE PLUS DIVIDENDS IN THE FIVE YEARS BEFORE THE FUND CAME KNOCKING IN 1990 SINCE THEN THE COMPANY HAS OUTPERFORMED THE S&P 500 BY 130 PERCENTAGE POINTS OTHER BIG WINNERS UNDER THE NEW APPROACH INCLUDE AMERICAN EXPRESS CO NORTHROP CORP ITT CORP HERCULES INC AND CHRYSLER CORP ACCORDING TO WILSHIRE TO BE SURE SOME TARGETS OF CALPERS'S NEW ACTIVISM INCLUDING WESTINGHOUSE ELECTRIC CORP FAILED TO OUTPERFORM THE MARKET DESPITE THE FUND'S BEST EFFORTS BUT EVEN SUCH SOSO RESULTS ARE A BIG IMPROVEMENT FROM PRIOR YEARS AS A GROUP THE 24 STOCKS TARGETED BY CALPERS SINCE THE 1990 POLICY CHANGE HAVE RACKED UP AVERAGE CUMULATIVE TOTAL RETURNS THAT ARE 109 PERCENTAGE POINTS AHEAD OF THE S&P 500 INDEX THE DATA SHOW THOSE SAME STOCKS LAGGED THE INDEX BY AN AVERAGE 86 PERCENTAGE POINTS BEFORE CALPERS STARTED AGITATING FOR BETTER OPERATING RESULTS THE PERFORMANCE DATA PROVE THAT CALPERS OFFICIALS AREN'T JUST BEATING THEIR CHESTS AND STIRRING THINGS UP SAYS MR NESBITT SUCH IMPROVED PERFORMANCE IS AN IMPORTANT AFFIRMATION OF CALPERS'S ACTIVISM WHOSE WHOLE POINT AFTER ALL IS TO IMPROVE THE FUND'S OWN BOTTOM LINE BECAUSE CALPERS'S PORTFOLIO IS SO VAST IT CAN'T DUMP UNDERPERFORMING SHARES WITHOUT DISRUPTING THE MARKET THE PENSION FUND'S PERMANENT OWNER STATUS SUGGESTS THAT THE ONLY WAY IT CAN RAISE ITS OWN STOCK RETURNS IS TO HELP REMEDY PROBLEMS AT THE COMPANIES THEMSELVES TO BACK UP CONCERNS ABOUT POOR PERFORMANCE THE CALIFORNIA FUND IN 1990 STARTED PAYING OUTSIDE RESEARCH FIRMS TO DO BUSINESS AUDITS OF TROUBLED COMPANIES WHICH IT SHARES WITH MANAGEMENT IN MANY CASES CALPERS ALSO PRESSED COMPANIES TO INSTALL MORE INDEPENDENT DIRECTORS ESPECIALLY ON IMPORTANT BOARD COMMITTEES BEFORE THAT POLICY SHIFT CALPERS'S EFFORTS HAD BEEN CRITICIZED FOR MEDDLING IN CORPORATE AFFAIRS AT THE EXPENSE OF THE FUND'S OWN BENEFICIARIES WHILE THE OLD STRATEGY OFTEN GENERATED BRIEF JUMPS IN STOCK PRICES IT DIDN'T ADDRESS MORE SERIOUS SHORTCOMINGS IN LONGTERM PERFORMANCE ON AVERAGE THE 18 STOCKS CALPERS TARGETED UNDER THE OLD POLICY CONTINUED TO LAG BEHIND THE INDEX BY SIX PERCENTAGE POINTS IN THE SUBSEQUENT FIVE YEARS IN MORE THAN A QUARTER OF THE PRE1990 CASES CALPERS'S EFFORTS BACKFIRED FOR EXAMPLE CONSOLIDATED FREIGHTWAYS INC WAS A STOCKMARKET LAGGARD BEFORE THE PENSION FUND ARRIVED ON THE SCENE IN 1988 BUT ITS RESULTS RAPIDLY DETERIORATED AFTER CALPERS TRIED TO FORCE IT TO DROP ITS POISON PILL A ANTITAKEOVER DEVICE THAT PROTECTS ENTRENCHED MANAGEMENT OFTEN TO THE DETRIMENT OF SHAREHOLDERS CONSOLIDATED FREIGHTWAYS' TOTAL RETURN FELL 139 PERCENTAGE POINTS BEHIND THE S&P 500 IN THE FIVE YEARS AFTER CALPERS BECAME INVOLVED COMPARED WITH ONLY 30 PERCENTAGE POINTS IN THE PRIOR FIVE YEARS THE DATA SHOW WHILE WILSHIRE'S STUDY IS ADJUSTED FOR FACTORS THAT COULD BIAS ITS RESULTS SUCH AS COMPANY SIZE RISK INDUSTRY CONCENTRATION AND GROWTH AND VALUE CHARACTERISTICS THE FIRM IS CAREFUL TO ALLOW THAT CALPERS'S REVISED ACTIVISM ALONE MAY NOT HAVE SPURRED THE IMPROVEMENT STATISTICALLY WE CAN'T PROVE THAT THE CAUSE IS CALPERS INVOLVEMENT MR NESBITT SAYS BUT WE HAVE A STRONG ASSOCIATION BETWEEN THE CALIFORNIA FUND'S PRESENCE AND THE STOCKS' TURNAROUNDS CALPERS FOR ITS PART IS SHY ABOUT TAKING CREDIT THIS REPORT SHOULD NOT BE TAKEN THAT WE WERE THE KEY TO THE TURNAROUND IN EVERY CIRCUMSTANCE SAYS RICHARD KOPPES THE FUND'S GENERAL COUNSEL 9401060112 940106 WHO'S NEWS USLIFE CORP USLIFE CORP NEW YORK DANIEL W ARNOLD 39 YEARS OLD WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT OPERATIONS AT THE USLIFE CREDIT LIFE INSURANCE CO UNIT OF THE INSURANCE HOLDING COMPANY MR ARNOLD WAS PREVIOUSLY VICE PRESIDENT OPERATIONS AT THE UNION FIDELITY LIFE INSURANCE CO UNIT OF AON CORP A CHICAGOBASED INSURANCE HOLDING COMPANY 9401060111 940106 INTERNATIONAL NORTH KOREA US REACH AGREEMENT OPENING NUCLEAR SITES TO INSPECTION BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NORTH KOREA AND THE US HAVE REACHED AN AGREEMENT IN PRINCIPLE THAT WOULD OPEN THE ISOLATED NATION'S SEVEN DECLARED NUCLEAR RESEARCH SITES TO INTERNATIONAL INSPECTION LYNN DAVIS AN UNDERSECRETARY AT THE STATE DEPARTMENT SAID THAT NORTH KOREA WILL OPEN TALKS WITH THE INTERNATIONAL ATOMIC ENERGY AGENCY WITHIN THE NEXT FEW DAYS TO GO OVER THE DETAILS OF THE INSPECTION WHICH WILL BE THE FIRST FULL STUDY OF THE SITES SINCE LAST FEBRUARY THE ARRANGEMENT FALLS SHORT OF THE ADMINISTRATION'S ORIGINAL GOAL OF GETTING NORTH KOREA TO REAFFIRM ITS OBLIGATIONS TO THE NUCLEAR NONPROLIFERATION TREATY WHICH REQUIRES A NATION TO SUBMIT TO PERIODIC INSPECTIONS OF NUCLEAR SITES HOWEVER PRESIDENT CLINTON AND OTHER ADMINISTRATION OFFICIALS YESTERDAY DENIED A NEWS ACCOUNT THAT SUGGESTED THE US HAS RETREATED FROM THAT GOAL WE DIDN'T SETTLE FOR LESS MR CLINTON TOLD A GROUP OF JOURNALISTS SIMILARLY MS DAVIS SAID WE HAVE NOT BACKED DOWN IN TERMS OF ANY OF OUR DEMANDS EXPLAINING THAT THE INSPECTION IS ONE OF TWO INTERIM STEPS THE US HAS REQUIRED BEFORE UNDERTAKING A THIRD ROUND OF MORE GENERAL TALKS WITH NORTH KOREA THE TALKS PROBABLY WILL BE HELD IN GENEVA NEXT MONTH OR AS SOON AS THE RESULTS OF THE INSPECTION ARE KNOWN THOSE TALKS WOULD INCLUDE THE POSSIBILITY OF INSPECTING TWO CONTROVERSIAL ADDITIONAL SITES SEPARATELY ADMINISTRATION SOURCES TRIED TO CREATE SOME FLEXIBILITY IN THE US'S PUBLIC STANCE TOWARD NORTH KOREA A SENIOR ADMINISTRATION OFFICIAL SAID MR CLINTON MISSPOKE IN NOVEMBER WHEN HE SAID THAT NORTH KOREA CANNOT BE ALLOWED TO DEVELOP A NUCLEAR BOMB INSTEAD THE OFFICIAL SAID THE US POSITION IS THAT NORTH KOREA CAN'T DEVELOP ITS NUCLEAR CAPABILITY ANY FURTHER AND MUST BE OPEN TO FULL INSPECTION REGARDING THE OTHER INTERIM STEP MS DAVIS SAID THAT NORTH KOREA IS PREPARING TO CONTINUE ITS OFFAGAINONAGAIN DIALOGUE WITH SOUTH KOREA AS PART OF THE AGREEMENT IN RETURN THE US HAS SAID IT WOULD CANCEL TEAM SPIRIT AN ANNUAL EXERCISE BETWEEN US TROOPS AND THE SOUTH KOREAN ARMY DESIGNED TO PRACTICE RAPID REINFORCEMENT OF THE PENINSULA IN CASE OF AN ATTACK FROM THE NORTH THE COMING IAEA INSPECTION IS INTENDED TO GIVE THE AGENCY THE OPPORTUNITY TO MAKE SURE THAT NONE OF THE SITES IT REGULARLY INSPECTS HAS CHANGED SINCE FEBRUARY THE AGENCY ALSO WOULD REPLACE SEALS BATTERIES AND VIDEOCASSETTES IN EQUIPMENT IT USES FOR REMOTE MONITORING OF ACTIVITY AT THE SITES ONE OFFICIAL SAID THE US HASN'T PERSUADED NORTH KOREA TO RESUME HIGHLEVEL TALKS WITH SOUTH KOREA ONLY TALKS AT THE WORKINGGROUP LEVEL CURRENTLY HIGHLEVEL CONTACTS BETWEEN THE TWO COUNTRIES ARE APPROACHING WHAT MAY BE A NEW LOW A NORTH KOREAN NEWSPAPER CONTROLLED BY THE GOVERNMENT ATTACKED SOUTH KOREA'S PRESIDENT THIS WEEK FOR MAKING REMARKS ABOUT THE NORTH'S ALLEGED NUCLEAR WEAPONS PROGRAM THE TRAITOR KIM YOUNGSAM HAD BETTER ACT WITH DISCRETION MINDFUL THAT HIS TREACHEROUS UTTERANCES AT THE BEGINNING OF THE YEAR WILL ONLY LEAD HIM MORE QUICKLY TO HIS GRAVE ONCE THE STATUS OF NORTH KOREA'S RESEARCH SITES IS KNOWN US OFFICIALS WILL MEET WITH THEIR NORTH KOREAN COUNTERPARTS IN GENEVA FOR A WIDERANGING DISCUSSION THAT WILL BEGIN WITH AN ATTEMPT BY THE US TO GET THE STALINIST STATE TO REAFFIRM ITS OBLIGATIONS UNDER THE TREATY THEY INCLUDE ALLOWING THE IAEA TO CONDUCT PERIODIC REGULAR INSPECTIONS AS WELL AS SPECIAL INSPECTIONS OF SUSPICIOUS UNDECLARED SITES THERE ARE TWO AREAS THAT THE IAEA BELIEVES ARE WASTE SITES THAT CONTAIN EVIDENCE OF NORTH KOREA'S EFFORTS TO DRAW OFF PLUTONIUM FROM ITS RESEARCH REACTOR FUEL TO MAKE NUCLEAR WEAPONS NORTH KOREA TRIGGERED THE INTERNATIONAL FUROR OVER ITS YONGBYON FACILITY IN FEBRUARY WHEN IT DENIED IAEA INSPECTORS ACCESS TO THE SUSPECTED WASTE SITES A MONTH LATER IT ANNOUNCED IT WAS WITHDRAWING FROM THE TREATY SOMETHING NO OTHER NATION HAS DONE IN JUNE THE US GOT NORTH KOREA TO AGREE TO SUSPEND THE WITHDRAWAL US OFFICIALS BELIEVE THAT NORTH KOREA MAY HAVE ENOUGH PLUTONIUM TO MAKE ONE OR TWO NUCLEAR WEAPONS WHETHER THEY HAVE DONE THAT HOWEVER IS A SUBJECT OF WIDERANGING DISPUTES AMONG THE EXPERTS ONE THEORY IS THAT NORTH KOREA MAY HAVE A RUDIMENTARY BOMB BUT THAT IT IS TOO HEAVY TO DELIVER EXCEPT BY BARGE OR TRUCK THERE HAVE BEEN REPORTS FROM DIPLOMATS AND OTHERS WITH CONTACTS IN PYONGYANG THAT NORTH KOREAN DICTATOR KIM ILSUNG AND HIS LEADERSHIP ARE PREPARED TO MAKE CONCESSIONS PERHAPS EVEN GIVING UP THE NATION'S NUCLEAR PROGRAM IN EXCHANGE FOR DESPERATELY NEEDED AID FROM THE WEST THERE HAVE ALSO BEEN REPORTS THAT NORTH KOREA HAS ACCEDED TO ANOTHER US DEMAND AND CANCELED ITS PROPOSED SALE OF LONGRANGE NODONG1 MISSILES TO IRAN A US OFFICIAL SAID REPORTS OF THE CANCELLATION HAVEN'T BEEN CONFIRMED 9401060110 940106 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG OVER THE HOLIDAYS LOTS OF PEOPLE GOT NEW COMPUTERS WITH MODEMS ESSENTIALLY TELEPHONES USED TO TRANSMIT AND RECEIVE COMPUTER DATA THOSE LUCKY ENOUGH TO HAVE THEM HOOKED UP PROPERLY BY NOW PROBABLY ARE ANXIOUS TO FIGURE OUT WHAT TO DO WITH THEM IT'S BEEN A WHILE SINCE I'VE REVIEWED THE MAJOR COMMERCIAL ONLINE SERVICES THOSE HUGE REPOSITORIES OF NEWS DATA AND ELECTRONIC MESSAGES YOU REACH THROUGH YOUR MODEM IN THE PAST SIX MONTHS OR SO COMPETITION AMONG THESE SERVICES HAS HEATED UP FIERCELY WITH NEW FEATURES AND PRICES SO HERE'S A BRIEF UPDATE ON THE BIG THREE GENERALINTEREST CONSUMER SERVICES COMPUSERVE AMERICA ONLINE AND PRODIGY AS WELL AS NEWS ON SOME NEW COMPETITORS SCHEDULED TO SHOW UP THIS YEAR COMPUSERVE STILL HAS THE RICHEST OFFERINGS BUT IT HAS BEEN THE SLOWEST TO CHANGE AND CAN BE MUCH COSTLIER THAN THE OTHER TWO SERVICES ESPECIALLY IF YOU MAKE HEAVY USE OF SOME OF ITS BEST FEATURES THE 15YEAROLD SERVICE OWNED BY H&R BLOCK CLAIMS 16 MILLION SUBSCRIBERS IT HAS ADDED RELATIVELY FEW SIGNIFICANT FEATURES TO ITS TRADITIONAL CORE OF NEWS AND FORUMS BULLETIN BOARDS THAT ARE ESPECIALLY STRONG ON COMPUTER ADVICE AND SUPPORT THE MOST IMPORTANT RECENT ADDITION HAS BEEN AN ONLINE EDITION OF THE WEEKLY MAGAZINE US NEWS AND WORLD REPORT BUT A NUMBER OF INTERESTING THINGS ARE IN THE WORKS INCLUDING ACCESS TO PARTS OF THE INTERNET NETWORK AND A WINDOWS PROGRAM CALLED NAVIGATOR THAT LETS YOU SCAN THE SYSTEM QUICKLY AND SO SAVE MONEY COMPUSERVE MEMBERS PAY 895 A MONTH FOR UNLIMITED ACCESS TO NEWS WEATHER SPORTS STOCK QUOTES AND BASIC REFERENCES USING ANYTHING ELSE INCLUDING THE VALUABLE FORUMS COSTS A STIFF 8 AN HOUR AT STANDARD MODEM SPEEDS AND A TRULY PAINFUL 16 AN HOUR FOR HIGHSPEED MODEMS IT ALSO COSTS EXTRA TO SEND MORE THAN 60 ELECTRONIC MAIL MESSAGES MONTHLY AND TO RECEIVE ELECTRONIC MAIL FROM PEOPLE ON OTHER SERVICES BUT THE SERVICE IS ADDING SOME LOWERCOST TECHNOLOGY THAT MAY ALLOW PRICE CUTS THIS YEAR AMERICA ONLINE AOL REMAINS THE HOTTEST EASIESTTOUSE AND MOST INTERESTING OF THE SERVICES DURING 1993 THE UPSTART SYSTEM MORE THAN DOUBLED ITS MEMBERSHIP HITTING 500000 DUE TO AGGRESSIVE PRICING AND THE INTRODUCTION OF MANY FEATURES AOL OFFERS TIME MAGAZINE ONLINE AS WELL AS THE ATLANTIC MONTHLY THE CHICAGO TRIBUNE AND FEATURES PROVIDED BY NATIONAL PUBLIC RADIO AND CSPAN AMONG OTHERS IT EVEN HAS INTRODUCED A USERFRIENDLY WAY TO REACH PARTS OF THE VAST BUT COMPLEX INTERNET ONLINE SYSTEM WHEN IT COMES TO BASIC NEWS AND REFERENCE SERVICES AMERICA ONLINE LAGS BEHIND ITS COMPETITORS BUT THE COMPANY SAYS IT HAS DEALS IN THE PIPELINE TO REMEDY THAT OVER THE NEXT FEW MONTHS ALSO ITS EXPLOSIVE GROWTH HAS CAUSED PROBLEMS DURING THE PAST FEW MONTHS THE SERVICE HAS CRAWLED AT TIMES THOUGH IT SEEMS TO HAVE RECOVERED LATELY AMERICA ONLINE CHARGES 995 A MONTH FOR THE FIRST FIVE HOURS YOU'RE CONNECTED REGARDLESS OF MODEM SPEED OR THE FEATURES YOU USE WITH A FEW MINOR EXCEPTIONS AFTER THAT IT'S 350 AN HOUR ELECTRONIC MAIL IS FREE PERIOD PRODIGY A JOINT VENTURE OF IBM AND SEARS ROEBUCK FINALLY HAS STARTED TO IMPROVE ITS GARISH JUMBLED LOOK AND CONFUSING SYSTEM FOR NAVIGATING AMONG FEATURES THE NEW MAIN SCREENS ARE CLEANER AND SIMPLER WITH BLACK TEXT ON WHITE INSTEAD OF THE AWFUL COLORED TEXT ON BLACK AND COLORCODED BUTTONS TO TAKE YOU TO VARIOUS FEATURES AND ADS THAT HIDE THEIR GAUDY GRAPHICS UNLESS YOU ASK TO SEE THEM THERE'S ALSO A WINDOWS VERSION OF THE PRODIGY SOFTWARE WITH MENUS AND A COMPANION PROGRAM THAT LETS YOU COMPOSE AND READ ELECTRONIC MAIL OFFLINE THAT'S THE GOOD NEWS BUT THE BAD NEWS IS THAT THE IMPROVEMENTS AFFECT ONLY A SMALL MINORITY OF PRODIGY'S SCREENS SO FAR AND THE NEW LOOK WAS ACCOMPANIED BY STIFF PRICE INCREASES PRODIGY'S NEW PRICING STRUCTURE IS COMPLEX AND CAN GET EXPENSIVE THE SERVICE CHARGES A STANDARD FLAT FEE OF 1495 A MONTH FOR UNLIMITEDUSE CORE SERVICES SUCH AS NEWS AND REFERENCE BUT BULLETIN BOARDS COST 360 AN HOUR AFTER THE FIRST TWO HOURS AND ELECTRONIC MAIL COSTS EXTRA AFTER 30 MESSAGES A MONTH THERE ALSO ARE EXTRA CHARGES FOR SOFTWARE DOWNLOADING AND CERTAIN PREMIUM GAMES AND FINANCIAL FEATURES AND YOU CAN ONLY SEND EMAIL TO PEOPLE ON OTHER SYSTEMS WITH THE OFFLINE MAIL PROGRAM PRODIGY NOW OFFERS FEATURES IN WHICH CABLE TV NETWORKS WILL POST VIEWER INFORMATION AFTER LOSING MEMBERS LAST SUMMER DUE TO THE PRICE RISES THE SERVICE CLAIMS TO HAVE RECOVERED TO ABOUT A MILLION HOUSEHOLD SUBSCRIPTIONS WITH ABOUT TWO MILLION USERS SOME NEW SERVICES ARE DUE TO ENTER THE FRAY THIS YEAR APPLE COMPUTER PLANS A SERVICE CALLED EWORLD WHICH LETS USERS NAVIGATE AMONG FEATURES USING A 3D MAP OF A FICTIONAL TOWN IN WHICH THE BUILDINGS REPRESENT THE SECTIONS OF THE SERVICE EWORLD WILL ONLY BE AVAILABLE ON APPLE'S MACINTOSH COMPUTERS AT FIRST BUT AN IBMCOMPATIBLE VERSION IS PLANNED AT&T ALSO IS BELIEVED TO BE ABOUT TO LAUNCH AN ONLINE SERVICE BUILT AROUND EMAIL MICROSOFT IS WORKING ON ANOTHER SERVICE THAT MAY DEBUT IN LIMITED FASHION LATE THIS YEAR AND A MAJOR TRADEMAGAZINE PUBLISHER IS READYING A NEW SERVICE MAINLY FOR PEOPLE INTERESTED IN COMPUTERS SO KEEP THOSE MODEMS OILED AND READY BUT HAVE YOUR WALLET OPEN THERE'S A LOT TO DO OUT THERE ON THE COMMERCIAL LANES OF THE INFORMATION HIGHWAY IF YOU'RE WILLING TO PAY THE TOLLS 9401060109 940106 CHYRON BONDS CONVERTED BY PESA MELVILLE NY CHYRON CORP SAID ITS LARGEST SHAREHOLDER PESA INC CONVERTED 28 MILLION IN NOTES INTO CHYRON'S COMMON STOCK AND RESOLD THE 14 MILLION SHARES TO EUROPEAN INVESTORS THE NOTES HAD A CONVERSION RATE OF 20 CENTS A SHARE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING CHYRON SHARES WERE UNCHANGED AT 625 CENTS YESTERDAY AS PART OF CHYRON'S REORGANIZATION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE THE VIDEO GRAPHICS EQUIPMENT MAKER HAD SOLD 5 MILLION IN FOURYEAR CONVERTIBLE NOTES TO PESA A SPANISH BROADCAST ELECTRONICS COMPANY IN THE BANKRUPTCYLAW PROCEEDINGS PESA SAID IT WOULD RESELL THE NOTES OR THE UNDERLYING SHARES WITH THE LATEST TRANSACTION PESA WHICH HOLDS 69 OF CHYRON'S SHARES HAS RESOLD 48 MILLION OF THE NOTES 9401060105 940106 REVIEW & OUTLOOK EDITORIAL ASIDES KILLJOYS RECESSIONWEARY CALIFORNIANS AT LEAST CAN CONSOLE THEMSELVES WITH THE FACT THAT THEIR AIR IS GETTING CLEANER ALL THE FASTER WITHOUT SO MUCH COMMERCE GOING ON THE FLIP SIDE OF THE STORY IS FOUND IN COLORADO WHERE MANY ARE MOVING FOR A BETTER LIFE MONSTER SMOG WOES LOOM HEADLINES THE DENVER POST WITH THE INFLUX OF DRIVERS BLAMED ACTUALLY BOTH PARTS OF THE COUNTRY HAVE DRAMATICALLY IMPROVED THEIR POLLUTION RECORDS IN RECENT YEARS BUT IT'S STILL EASY TO TRIP OVER THE EXCEEDINGLY LOW THRESHOLDS UNDER THE NEW CLEAN AIR ACT HEAVY SANCTIONS FOLLOW THE POST WARNS WILL WASHINGTON CUDGEL COLORADO'S COMEBACK 9401060104 940106 BUSINESS BRIEF AMDAHL CORP COMPUTER FIRM TO DEVELOP MAINFRAMES WITH FUJITSU AMDAHL CORP SEEKING TO CUT ITS RESEARCH AND DEVELOPMENT COSTS SAID IT AND FUJITSU LTD WILL TEAM UP TO JOINTLY DEVELOP BOTH COMPANIES' NEXT GENERATION OF MAINFRAME COMPUTERS AMDAHL'S COMPUTERS WILL BE COMPATIBLE WITH INTERNATIONAL BUSINESS MACHINES CO SYSTEMS FUJITSU'S WILL RUN THEIR OWN OPERATING SYSTEM AMDAHL AND FUJITSU HAVE COLLABORATED IN THE PAST AMDAHL SUNNYVALE CALIF IS A MAINFRAME COMPUTER MAKER FUJITSU BASED IN TOKYO IS A TELECOMMUNICATIONS SEMICONDUCTOR AND ELECTRONICS CONCERN THAT OWNS 44 OF AMDAHL 9401060103 940106 BUSINESS BRIEF BECHTEL GROUP INC UNIT WINS CONTRACT TO BUILD OFFICE COMPLEX IN THAILAND BECHTEL GROUP INC'S BECHTEL CIVIL CO UNIT SAID IT WON A THREEYEAR CONTRACT VALUED AT MORE THAN 200 MILLION TO BUILD A LUXURY OFFICE COMPLEX THAT WILL BE THE TALLEST BUILDINGS IN BANGKOK THAILAND THE 33 MILLIONSQUAREFOOT EMPIRE TOWERS BEING BUILT FOR THAIHONG KONG REAL ESTATE LTD WILL INCLUDE THREE INTERCONNECTED TOWERS OF 62 58 AND 54 FLOORS THE COMPLEX WILL INCLUDE 15 FLOORS OF PARKING THAT CAN FIT AS MANY AS 2700 CARS CONSTRUCTION BEGAN LAST WEEK AND IS EXPECTED TO BE COMPLETE BY LATE 1996 BECHTEL GROUP SAN FRANCISCO IS A LARGE ENGINEERING CONSTRUCTION AND MANAGEMENT COMPANY 9401060102 940106 ON MACY FUND MANAGER SPEAKS LOUDLY BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL THE FUTURE OF RH MACY & CO WILL DEPEND HEAVILY ON DANIEL HARMETZ A 31YEAROLD MONEY MANAGER LITTLE KNOWN OUTSIDE THE ARCANE WORLD OF BANKRUPTCY INVESTING MR HARMETZ WHO SHARES THE RESPONSIBILITY FOR RUNNING FIDELITY INVESTMENTS' CAPITAL & INCOME FUND HAS BEEN THE MOST VOCAL AGITATOR BEHIND THE SCENES DURING MACY'S BANKRUPTCY PROCEEDING AT HIS URGING FIDELITY HAS ACCUMULATED A 490 MILLION POSITION HELD BY A HANDFUL OF THE BOSTONBASED FUND GROUP'S MUTUAL FUNDS THAT MAKES FIDELITY THE RETAILER'S SECONDLARGEST CREDITOR BEHIND FEDERATED DEPARTMENT STORES INC A FORMER BANKRUPTCY LAWYER WHO FIRST BECAME INTERESTED IN BANKRUPTCY INVESTING WHILE AN UNDERGRADUATE AT THE UNIVERSITY OF CALIFORNIA IN BERKELEY MR HARMETZ MANAGES A TOTAL OF 3 BILLION HE MADE HIS NAME DABBLING IN THE DEBT OF DISTRESSED CASINO PROPERTIES MACY IS HIS FIRST BIG BET ON A RETAILER DRAWN TO WHAT HE HOPED WOULD BE A QUICK TURNAROUND OF A FAMOUS NAME MR HARMETZ BEGAN AGGRESSIVELY PUSHING FOR MACY'S EMERGENCE FROM BANKRUPTCY COURT WITHIN DAYS OF ITS JANUARY 1992 FILING FOR PROTECTION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE HE MET WITH REPRESENTATIVES OF THE RETAILER TO URGE A SPEEDY RESOLUTION AT THE SAME TIME HE BEGAN VISITING RIVAL RETAILERS AND OTHER SOCALLED VULTURE INVESTORS WHO PREY ON TROUBLED COMPANIES IN THE HOPES OF SPURRING MACY'S MANAGEMENT TO ACTION HE WAS SO CONFIDENT THAT MACY'S STRONG PRESENCE AND FAMILIAR NAME WOULD APPEAL TO A BUYER THAT HE BOUGHT AS MUCH BANK DEBT AS HE COULD TRADERS SAY UNDAUNTED BY MACY'S STONEWALLING MR HARMETZ INCREASED FIDELITY'S HOLDINGS TENFOLD FROM ABOUT 20 MILLION WITHIN THE FIRST YEAR OF THE BANKRUPTCY FILING TRADERS SAY HE ADDED THE BALANCE BY BUYING JAPANESE BANKS' MACY LOANS FOR AS LITTLE AS 60 CENTS ON THE DOLLAR FIDELITY'S MACY HOLDINGS ARE TOO LARGE TO BE HELD BY FIDELITY CAPITAL & INCOME ALONE IN FACT THAT FUND HOLDS ONLY 84 MILLION OF MACY BANK DEBT THE REST IS SPRINKLED AMONG FIDELITY'S MAGELLAN PURITAN AND EQUITY INCOME FUNDS THE SEARCH FOR A CATALYST FOR CHANGE AT MACY NARROWED QUICKLY TO FEDERATED DEPARTMENT STORES AND DILLARD DEPARTMENT STORES INC ACCORDING TO A PERSON FAMILIAR WITH THE TALKS BY DECEMBER OF LAST YEAR HOWEVER MR HARMETZ WAS BECOMING DISCOURAGED TALKS WITH FEDERATED FLAGGED WHEN THE CINCINNATIBASED RETAILER SEEMED UNWILLING TO PURSUE A HOSTILE STRATEGY FOR GAINING CONTROL OF MACY AND DILLARD'S INTEREST SEEMED LIKEWISE TO LANGUISH IF DAN HAD KNOWN THIS WOULD TURN INTO A TWOYEAR BANKRUPTCY HE WOULD NEVER HAVE BOUGHT THE POSITION SAYS A RIVAL VULTUREFUND MANAGER SO FAR MR HARMETZ HASN'T STATED WHETHER HE'LL SUPPORT ANY BID FROM FEDERATED UNDER BANKRUPTCY LAW FEDERATED CANNOT FILE A PLAN OF REORGANIZATION UNTIL MACY'S EXCLUSIVE RIGHT TO PROPOSE ITS OWN PLAN HAS EXPIRED THAT EXCLUSIVITY PERIOD TERMINATES IN MIDMARCH BUT IT COULD BE EXTENDED BY JUDGE BURTON LIFLAND OF FEDERAL BANKRUPTCY COURT IN NEW YORK MR HARMETZ SAYS HE ISN'T STANDING STILL UNTIL THEN YESTERDAY HE MET WITH MACY MANAGEMENT HE ALSO MET WITH FEDERATED AND TODAY HE IS EXPECTED TO MEET WITH REPRESENTATIVES FROM DILLARD TO DISCUSS THE POSSIBILITY OF A JOINT BID MR HARMETZ REFUSES TO DESCRIBE HOW SUCH A BID MIGHT BE STRUCTURED RIGHT NOW HE SAYS WE ARE JUST DIGESTING THE SITUATION BUT PEOPLE WITH WHOM HE HAS DISCUSSED THE POTENTIAL MOVE SAY MR HARMETZ HAS BEEN MULLING OVER THE IDEA OF JOINING WITH DILLARD TO MAKE A FURTHER INVESTMENT IN MACY IN ORDER TO BUY IT AND BREAK IT UP MR HARMETZ'S INTEREST IN MACY'S DEBT REFLECTS HIS PREFERENCE FOR SENIOR DEBT THAT IS SECURED BY CLAIMS ON A TROUBLED COMPANY'S ASSETS WHENEVER POSSIBLE HE SAYS HE LIKES TO ACCUMULATE A POSITION LARGE ENOUGH TO BLOCK ANY PLAN OF REORGANIZATION THAT HE DOESN'T LIKE THAT'S WHY FIDELITY OWNS THE MACY'S SECURITIES IT DOES BANK DEBT SECURED BY STORES AND BY THE MACY NAME SUCH SECURITY LIMITS THE POSSIBILITY OF LOSS ONCE A REORGANIZED COMPANY EMERGES FROM BANKRUPTCY PROCEEDINGS SECURED DEBT GENERALLY RECEIVES A RECOVERY EQUAL TO THE VALUE OF THE ASSETS BACKING THE ORIGINAL LOAN THIS HAS BEEN A VERY SUCCESSFUL STRATEGY LAST YEAR THE CAPITAL & INCOME FUND THAT MR HARMETZ COMANAGES PRODUCED A TOTAL RETURN OF JUST UNDER 25 ACCORDING TO A FIDELITY SPOKESWOMAN THE RETURN WAS EVEN HIGHER THE YEAR BEFORE AND IT HIT A PEAK OF NEARLY 30 IN 1991 WHEN MR HARMETZ JOINED FROM COLUMBIA SAVINGS & LOAN ONE OF THE LARGEST BUYERS OF HIGHYIELD DEBT AND THE PLACE HE BEGAN WORKING ON RESTRUCTURINGS MR HARMETZ HAS SHARED IN HIS INVESTORS' RETURNS HE SAID HIS ANNUAL COMPENSATION IS IN THE RANGE OF 15 MILLION I MAKE A LOT OF MONEY HE CONCEDES BUT WON'T SPECIFY HOW MUCH MR HARMETZ IS ALSO IN THE UNUSUAL POSITION OF RUNNING A MUTUAL FUND OPEN TO THE PUBLIC WHILE ALSO MANAGING NEARLY 1 BILLION OF PRIVATE FUNDS WITHIN FIDELITY A PERSON FAMILIAR WITH THE FUNDS SAYS THAT MR HARMETZ WILL MANAGE ONLY THE PRIVATE MONEY AS OF THE END OF THIS WEEK 9401060101 940106 GM SATURN UNIT TRUMPETS PROFIT TURNED IN 1993 RESULTS WITH QUALIFICATIONS SET STAGE FOR STRUGGLE OVER FUNDING 2ND PLANT BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S SATURN UNIT TURNED A PROFIT IN 1993 WITH SOME BIG QUALIFICATIONS GENERATING BONUSES FOR ITS WORKERS AND SETTING THE STAGE FOR A STRUGGLE WITHIN GM OVER WHETHER TO SINK ANOTHER 1 BILLION OR MORE INTO THE CLOSELY WATCHED EXPERIMENT IN SMALLCAR MAKING FOR GM'S PRESIDENT JOHN F SMITH JR SATURN IS A DILEMMA THE HIGHVISIBILITY PROJECT WITH ITS INNOVATIVE LABOR RELATIONS AND CUSTOMERFRIENDLY SALES STYLE COULD LOSE MOMENTUM UNLESS IT GETS MONEY TO REDESIGN ITS CARS BY 1996 AND EXPAND ITS PRODUCTION CAPACITY BUT MR SMITH CAN ILL AFFORD APPEARING TO FAVOR SATURN AT A TIME WHEN OTHER GM DIVISIONS WITH GREATER PROFIT POTENTIAL ARE STARVED FOR CAPITAL SATURN OFFICIALS LOOKING TO DOWNPLAY SIGNS THAT THE UNIT'S SALES HAVE COOLED USED A PRESS CONFERENCE AT THE DETROIT AUTO SHOW YESTERDAY TO TRUMPET NEWS THAT THE SUBSIDIARY TURNED A PROFIT BEFORE INTEREST PAYMENTS TAXES AND CERTAIN OTHER CHARGES TO CELEBRATE SATURN PLANS TO INVITE 700000 BUYERS TO DESCEND ON THE HAMLET OF SPRING HILL TENN IN JUNE FOR A SORT OF AUTOMOTIVE WOODSTOCK FESTIVAL AT THE SATURN FACTORY THOMAS MANOFF SATURN'S VICE PRESIDENT OF FINANCE SAID THE UNIT'S QUALIFIED PROFIT WHICH HE DIDN'T DISCLOSE WILL GENERATE BONUSES FOR ALL 8000 SATURN EXECUTIVES AND HOURLY WORKERS THOSE BONUSES WILL BE ABOUT 1000 A WORKER A SATURN OFFICIAL INDICATED WORKERS AND EXECUTIVES AT GM'S OTHER NORTH AMERICAN VEHICLE DIVISIONS WON'T RECEIVE PROFITSHARING OR BONUSES THIS YEAR DESPITE ACHIEVING THEIR GOAL OF BREAKING EVEN BEFORE TAXES INTEREST AND OTHER CHARGES SATURN EXECUTIVES NOW WANT TO PERSUADE MR SMITH AND GM'S BOARD TO APPROVE A SECOND SATURN PRODUCTION FACILITY TO BOOST THE UNIT'S CAPACITY TO 500000 VEHICLES A YEAR FROM 322000 VEHICLES A YEAR NOW WITHOUT THE ADDITIONAL PLANT SATURN MAY GO BACK INTO THE RED AND WON'T BE CAPABLE OF GENERATING ITS OWN NEW PRODUCT CAPITAL MR MANOFF INDICATED LONG TERM GM WANTS SATURN TO EARN A 125 RETURN ON ASSETS SAID WILLIAM E HOGLUND GM EXECUTIVE VICE PRESIDENT WHO OVERSEES SATURN OPERATIONS THAT TRANSLATES TO ABOUT 300 MILLION PROFIT A YEAR ON SATURN'S CURRENT OPERATIONS EXECUTIVES AT SOME OF GM'S OTHER DIVISIONS HOWEVER ARE VOICING SKEPTICISM THAT SATURN CAN JUSTIFY A SECOND PLANT SO SOON GIVEN THE FLOOD OF NEW ENTRIES INTO THE SMALLCAR MARKET SUCH AS THE DODGE NEON AND THE REDONE CHEVROLET CAVALIER SCHEDULED OUT THIS FALL GOD LOVE 'EM SAID JC PERKINS THE GM VICE PRESIDENT IN CHARGE OF THE CHEVROLET DIVISION OF SATURN ON TUESDAY HE ADDED THE CASE HASN'T BEEN MADE FOR ADDITIONAL SATURN CAPACITY SATURN'S CASE ISN'T BEING HELPED BY THE RECENT SLOWDOWN IN SALES OF ITS THREEYEAROLD SEDANS AND COUPES SATURN DEALERS WHO ONCE BEGGED FOR CARS NOW HAVE ABOUT 90 DAYS' SUPPLY OF UNSOLD VEHICLES ON HAND THAT'S NEARLY 40 MORE THAN IS CONSIDERED IDEAL SOME ANALYSTS SAY SATURN'S LOT WILL ONLY GET HARDER IN 1994 THE NEON AT 8975 CHANGES ALL THE COMPETITIVE PARAMETERS IN THE SMALL CAR FIELD SAID LEHMAN BROTHERS ANALYST JOSEPH PHILLIPPI WHO ATTENDED SATURN'S PRESS BRIEFING MR SMITH SAID EARLIER THIS WEEK THAT SATURN WON'T GET SPECIAL TREATMENT AS IT DID DURING THE 1980S WHEN GM PLOWED 5 BILLION INTO THE EFFORT TO MATCH JAPANESE SMALL CARS GM NOW LOOKS TO SPEND LESS THAN HALF THAT ON ITS FUTURE NEWVEHICLE PROGRAMS SATURN HAS TO COME IN WITH A PLAN THAT MAKES ECONOMIC SENSE MR SMITH SAID TUESDAY MR MANOFF INDICATED THAT SATURN'S 1993 PROFIT HAD SOME BIG QUALIFICATIONS SATURN ISN'T REPAYING GM IN CASH FOR SOME 3 BILLION IN DEVELOPMENT COSTS MR MANOFF SAID INSTEAD SATURN WILL TAKE CREDIT FOR THE VALUE OF KNOWLEDGE TRANSFERRED TO GM'S OTHER DIVISIONS AND FOR PROFITS EARNED ON SATURN BUSINESS BY OTHER GM OPERATIONS SATURN'S PROFIT ALSO DOESN'T INCLUDE INTEREST ON ABOUT 19 BILLION IN BONDS USED TO FINANCE THE SPRING HILL FACTORY 9401060100 940106 TWA CHIEF SEES IMPROVED RESULTS ON '94 OPERATIONS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL TRANS WORLD AIRLINES FOLLOWING A SURPRISE MANAGEMENT SHAKEUP TUESDAY SAID IT EXPECTS TO REPORT AT LEAST BREAKEVEN OPERATING EARNINGS IN 1994 FOLLOWING SEVERAL YEARS OF OPERATING LOSSES THE FORECAST MADE YESTERDAY IN AN INTERVIEW WITH THE NEWLY APPOINTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER DONALD F CRAIB JR CAME AT A TIME WHEN INVESTOR CONFIDENCE IN THE COMPANY WAS JOLTED BY NEWS THAT WILLIAM R HOWARD QUIT TWA'S TOP JOBS HE HAD JOINED JUST SIX MONTHS BEFORE AND HAD GUIDED IT OUT OF BANKRUPTCY COURT WHENEVER THERE ARE SUDDEN AND UNEXPECTED MANAGEMENT CHANGES IT'S ALWAYS A RED FLAG SAID RAYMOND NEIDL AN AIRLINE ANALYST WITH FURMAN SELZ INC THE DEPARTURES OF MR HOWARD AND GLENN ZANDER A TWA VETERAN AND COVICE CHAIRMAN CAPPED SEVERAL MONTHS OF QUESTIONS ABOUT WHETHER TWA WOULD SURVIVE THE SLACK WINTER TRAFFIC SEASON FOR THE THIRD QUARTER TRADITIONALLY THE AIRLINE INDUSTRY'S STRONGEST PERIOD TWA REPORTED A LOSS OF 617 MILLION AND SOME ANALYSTS HAVE QUESTIONED WHETHER THE COMPANY WOULD HAVE ENOUGH CASH TO MAKE IT TO THE CRUCIAL SPRING AND SUMMER TRAVEL PERIOD MR CRAIB 68 YEARS OLD IS A TWA DIRECTOR AND FORMER CHAIRMAN AND CHIEF EXECUTIVE OF ALLSTATE INSURANCE GROUP IN YESTERDAY'S INTERVIEW HE SAID HE COULDN'T SPECIFICALLY FORECAST TWA'S NET RESULT FOR 1994 BUT AFTER A DAY OF MEETING WITH SENIOR OFFICERS AT HEADQUARTERS IN MOUNT KISCO NY MR CRAIB SAID THE AIRLINE IS LOOKING FOR A MINIMUM OF A BREAKEVEN IN 1994 ON AN OPERATING BASIS TWA HASN'T YET REPORTED FULL 1993 RESULTS BUT IN THE FIRST NINE MONTHS TWA POSTED AN OPERATING LOSS OF 5894 MILLION AFTER TAXES AND A BIG PENSION SETTLEMENT CHARGE AND A NET LOSS OF 4175 MILLION FOR ALL OF 1992 THE CARRIER'S OPERATING LOSS WAS 3143 MILLION AND ITS NET LOSS WAS SLIGHTLY HIGHER TWA FILED FOR PROTECTION FROM CREDITORS IN JANUARY 1992 UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND EMERGED FROM THOSE PROCEEDINGS TWO MONTHS AGO MR CRAIB DISMISSED GLOOMY PROGNOSTICATIONS ABOUT THE AIRLINE SAYING TWA HAD ABOUT 160 MILLION IN CASH AT THE END OF DECEMBER HE SAID THAT WILL BE PLENTY TO SEE THE COMPANY THROUGH THE SLOW WINTER MONTHS AS TO 1994 HE SAID THE CARRIER WILL ENHANCE ITS CASH POSITION SOME TWA MANAGERS AND INDUSTRY CONSULTANTS BELIEVE MR HOWARD RESIGNED TUESDAY OVER DIFFERENCES ABOUT STRATEGY WITH OTHER TWA OFFICERS BUT MR CRAIB SAID HE KNEW OF NO SUCH CONFLICTS BILL FELT HE HAD FULFILLED HIS OBLIGATION TO THE COMPANY IN SEEING IT SUCCESSFULLY THROUGH BANKRUPTCY MR CRAIB SAID MR HOWARD DIDN'T RETURN PHONE CALLS MR CRAIB SAID MR ZANDER THE COVICE CHAIRMAN LEFT FOR PERSONAL REASONS WHICH HE DIDN'T DETAIL MR ZANDER COULDN'T BE REACHED ROBIN WILSON TWA'S REMAINING VICE CHAIRMAN SAID THE BOARD RECENTLY APPROVED THE ACQUISITION OF 15 AIRCRAFT ALL OF WHICH ARE EXPECTED TO BE IN SERVICE BY THE SUMMER HE SAID THE AIRLINE PLANS TO BUY EIGHT MCDONNELL DOUGLAS CORP MD80S SIX BOEING CO 767300S AND A BOEING 747200 MR CRAIB NOTING THAT MORE NONAIRLINE OFFICERS HAVE BEEN NAMED TO SENIOR POSTS AT CARRIERS RECENTLY SAID I CONSIDER THIS A PERMANENT SITUATION 9401060099 940106 WHO'S NEWS ICO INC ICO INC HOUSTON STEPHEN D HOUK 37 YEARS OLD RESIGNED AS SENIOR VICE PRESIDENT SECRETARYTREASURER AND CHIEF FINANCIAL OFFICER OF THIS PIPELINE INSPECTION AND COATINGS COMPANY A SPOKESMAN SAID THE COMPANY AND MR HOUK MUTUALLY AGREED TO THE SEPARATION LINDA C BRADY 30 WAS NAMED ACTING CHIEF FINANCIAL OFFICER AND THE BOARD HAS FORMED A COMMITTEE TO FIND A PERMANENT CHIEF FINANCIAL OFFICER 9401060098 940106 AGENCIES URGE RUSSIAN AID BE TIED TO SOCIAL POLICY WASHINGTON THE INTERNATIONAL MONETARY FUND AND THE WORLD BANK ARE STRESSING THE IMPORTANCE OF LINKING FINANCIAL ASSISTANCE TO RUSSIA MORE CLOSELY TO SOCIAL AND ECONOMIC POLICIES RATHER THAN MAINLY POLITICAL MOTIVATIONS THE INSTITUTIONS IN A HIGHLY UNUSUAL JOINT STAFF NOTE ALSO DEFEND THEMSELVES AGAINST SENIOR US OFFICIALS' RECENT CRITICISM OF THE HANDLING OF MULTILATERAL ASSISTANCE TO RUSSIA THOSE OFFICIALS SAID INSUFFICIENT ATTENTION IS BEING PAID TO SOCIAL SAFETYNET PROGRAMS THE NOTE STRESSES THAT MISGUIDED FISCAL SPENDING IS A CRITICAL PROBLEM THAT RUSSIA MUST ADDRESS TO CREATE A MORE EFFICIENT SOCIAL SAFETY NET THE SOCIAL DIMENSION IS BEST ADDRESSED THROUGH TARGETED SOCIAL SAFETY NET POLICIES AS RECOMMENDED BY THE WORLD BANK AND IMF RATHER THAN THROUGH GENERALIZED SUBSIDIES AND CREDITS THE STAFF NOTE STATES THE STAFF NOTE UNDERSCORES THE DESIRE OF THE IMF AND WORLD BANK STAFF TO HOLD RUSSIA MORE ACCOUNTABLE STRESSING THAT WITHOUT POLICY CONDITIONALITY INCREASED CAPITAL FLIGHT AND A PROLONGED PERIOD OF REDUCED LIVING STANDARDS IS MORE LIKELY 9401060097 940106 OLD AMERICA STORES SALES GAIN HOWE TEXAS OLD AMERICA STORES INC SAID SALES LAST MONTH INCREASED 22 TO 143 MILLION FROM 118 MILLION A YEAR EARLIER SALES AT STORES OPEN MORE THAN A YEAR ROSE 39 OLD AMERICA IS A RETAILER OF HOMEDECORATING PRODUCTS AND ARTS AND CRAFTS ITEMS 9401060096 940106 TRUMP IS NEAR AGREEMENT TO BUY LAS VEGAS CASINO NEW YORK DONALD TRUMP IS CLOSE TO A DEAL TO ACQUIRE THE AILING ALADDIN HOTEL CASINO IN LAS VEGAS FOR ABOUT 60 MILLION ACCORDING TO TWO INDIVIDUALS FAMILIAR WITH THE NEGOTIATIONS MR TRUMP WHO HAS SPOKEN FOR YEARS ABOUT EXPANDING INTO LAS VEGAS HOPES TO FINANCE THE PURCHASE THROUGH A BOND OFFERING ACCORDING TO A PERSON FAMILIAR WITH HIS PLANS IT'S UNCLEAR WHETHER THAT OFFERING WOULD BE LINKED TO AN INTENDED PUBLIC OFFERING OF HIS THREE ATLANTIC CITY NJ CASINO PROPERTIES THE PURCHASE AGREEMENT IS EXPECTED TO BE SIGNED WITHIN TWO WEEKS THE ALADDIN IN A PRIME LOCATION NEAR THE NEW MGM GRAND HOTEL HAS BEEN ON THE MARKET FOR MORE THAN TWO YEARS BELL ATLANTIC TRICON LEASING CORP A UNIT OF BELL ATLANTIC CORP TOOK OWNERSHIP OF THE PROPERTY FOLLOWING THE BANKRUPTCY AND DEATH OF ITS FORMER OWNER AN ATTEMPT TO AUCTION THE PROPERTY IN 1991 FAILED TO ATTRACT A SUITABLE BID MR TRUMP DECLINED COMMENT AS DID A SPOKESWOMAN FOR BELL ATLANTIC MR TRUMP IS PREPARING FOR AN OFFERING OF HIS CASINO PROPERTIES TO RAISE MONEY TO PAY OFF ABOUT 200 MILLION IN PERSONALLY GUARANTEED BANK DEBT 9401060095 940106 TEAMSTERS TO VOTE ATLARGE ON RAISING DUES FOR FUND WASHINGTON TOP MANAGEMENT OF THE TEAMSTERS WILL SEEK A DUES INCREASE AS EARLY AS NEXT MONTH IN A BID TO SHORE UP THE TRUCKING UNION'S STRIKE FUND TEAMSTERS OFFICIALS SAID THIS WILL BE THE FIRST TIME THE UNION'S 14 MILLION MEMBERS IN THE US AND CANADA WILL VOTE DIRECTLY ON WHETHER TO RAISE DUES PREVIOUS DUES INCREASES WERE VOTED ON BY DELEGATES AT A CONVENTION AT THE UNION'S 1991 CONVENTION STRIKE BENEFITS WERE RAISED TO 200 A WEEK FROM 55 BUT NO PLAN WAS ADOPTED TO PAY FOR THE INCREASE IN PART AS A RESULT OF THAT INCREASE STRIKE BENEFITS ARE RUNNING ABOUT 34 MILLION A YEAR ABOUT NINE TIMES WHAT THEY WERE BEFORE 1991 UNION MANAGEMENT SAID A UNION SPOKESMAN SAID IT ISN'T CLEAR HOW LARGE AN INCREASE WILL BE SOUGHT EVERYTHING IS STILL UP FOR GRABS FOR HOW MUCH IT MIGHT BE THE SPOKESMAN SAID DUES TO THE INTERNATIONAL STAND AT 370 A MONTH FOR EACH MEMBER WHICH THE UNION SAID IS THE LOWEST OF ANY MAJOR US INTERNATIONAL UNION THE UNION LAST RAISED DUES TO THE INTERNATIONAL IN 1983 THE UNION IS IN SUCH WEAK FINANCIAL CONDITION THAT DURING NEGOTIATIONS WITH UNITED PARCEL SERVICE INC LATE LAST YEAR THE AFLCIO SET UP A 50 MILLION LINE OF CREDIT TO BOLSTER THE TEAMSTERS' STRIKE FUND THAT CREDIT LINE WASN'T TAPPED AS THE UNION AND UPS REACHED A CONTRACT WITHOUT A STRIKE 9401060094 940106 LETTERS TO THE EDITOR CLOSED DOORS HOUSING DISCRIMINATION ILLEGAL HOUSING DISCRIMINATION CONTINUES AT ALARMING RATES IN AMERICAN SOCIETY AS DOCUMENTED BY HUD THE JUSTICE DEPARTMENT AND NUMEROUS ACADEMIC STUDIES UNFORTUNATELY THE APPROACH TAKEN BY YOUR DEC 13 EDITORIAL POLITICALLY CORRECT CLASSIFIEDS TO THIS PROBLEM NOT ONLY FOCUSES ON ONE SPECIFIC CASE IN WHICH MANY OF THE FACTS WERE MISREPRESENTED BUT DISREGARDS THOSE EFFORTS NECESSARY TO ERADICATE HOUSING DISCRIMINATION THE WOMAN WHO PLACED THE CLASSIFIED AD APARTMENT FOR RENT 1 BEDROOM ELECTRIC INCLUDED MATURE CHRISTIAN HANDYMAN WAS OFFERED THE OPPORTUNITY TO DISCUSS SETTLEMENT OPTIONS ON THREE SEPARATE OCCASIONS THROUGH THE STATE'S ADMINISTRATIVE PROCESS IN SIMILAR CASES THE METROPOLITAN MILWAUKEE FAIR HOUSING COUNCIL HAS SETTLED FOR ONLY AN AGREEMENT BY THE HOUSING PROVIDER TO ATTEND A FAIR HOUSING TRAINING SEMINAR TO LEARN ABOUT THE LAWS HOWEVER THE WOMAN REFUSED TO DISCUSS THESE OPTIONS THE ADVERTISER WAS REPRESENTED BY AN ATTORNEY FROM THE RUTHERFORD INSTITUTE IF AS YOUR EDITORIAL STATES SHE HEARD NOTHING ABOUT THE CASE THAT MAY BE ATTRIBUTABLE TO HER ATTORNEY/CLIENT RELATIONSHIP RATHER THAN THE PROCESS ITSELF YOU STATE THAT THE MMFHC WAS TROLLING THE ADS TO NAIL PEOPLE ON THIS IN FACT AS PART OF ITS PROGRAM SERVICES WE PROVIDE LISTINGS OF RENTAL ADS FOR ITS CLIENTS WHO ARE LOOKING FOR HOUSING WHEN COMPILING SUCH LISTINGS THESE ILLEGAL ADS CAME TO OUR ATTENTION YOUR QUERY REGARDING WHERE THE LIMITS ARE ON THIS SORT OF LITIGATION AND ADMINISTRATIVE POLICING REFLECTS THE LACK OF UNDERSTANDING ABOUT THE DAMAGE THESE TYPES OF ADS CREATE THEY NOT ONLY DISCOURAGE POTENTIAL HOMESEEKERS FROM CONSIDERING SUCH HOUSING BUT ALSO SENDS THE ERRONEOUS MESSAGE THAT THIS TYPE OF DISCRIMINATION IS LEGALLY PERMISSIBLE IN FACT THE WOMAN WHO PLACED THE AD CONTENDS SHE FASHIONED HER AD AFTER SHE HAD SEEN SIMILAR ADS PLACED IN NEWSPAPERS INSTEAD OF APPLAUDING THE MILWAUKEE HOUSING COUNCIL FOR ENFORCING A NECESSARY AND WISE LAW YOU PERVERSELY PILLORIED IT FOR DOING WHAT IT IS SUPPOSED TO DO TO ACT UNEQUIVOCALLY AGAINST ETHNIC RELIGIOUS AND GENDER DISCRIMINATION WHENEVER AND WHEREVER IT OCCURS THE COUNCIL'S ATTORNEY WAS BEING UNNECESSARILY KIND WHEN SHE SAID SHE ACCEPTED THE PERPETRATOR'S CONTENTION THAT SHE HADN'T INTENDED TO DISCRIMINATE I NOT ONLY DO NOT ACCEPT HER ALLEGATION BUT TAKE IT AS A FALSEHOOD FOR ONCE BEING INFORMED OF THE INSIDIOUSNESS OF THE AD FOR A RENTER WHO WAS A MATURE CHRISTIAN HANDYMAN SHE COMPOUNDED THE OFFENSE BY INSISTING SHE WAS NOT DOING ANYTHING WRONG AS A CHRISTIAN WHO FELT SHE HAD AN OBLIGATION TO HELP OTHER CHRISTIANS FIRST YOUR WORDS I PRESUME ARE A PARAPHRASE OF HERS THAT OBLIGATION IS AS YOU SHOULD WELL KNOW THE BLOODY PIT FROM WHICH DISCRIMINATION SPRINGS I REMEMBER AS A YOUNG PERSON LOOKING FOR A JOB IN THE CLASSIFIED ADS AND SEEING EACH DOOR SEALED AGAINST ME BY THE ABBREVIATIONS IN THE LOWER CORNER CHR WHITE ONLY HAD YOUR EDITORIAL WRITER BEEN A HANDY WOMAN OR MALE OR FEMALE A JEW OR MUSLIM OR HINDU ETC SEEKING A SITUATION LIKE THE ONE ADVERTISED HE OR SHE MIGHT HAVE REACTED WITH THE LUMP IN THE CHEST THE RIGHTEOUS INDIGNATION AND THE SEETHING ANGER I EXPERIENCED ON READING YOUR EDITORIAL I COMMEND LOCAL STATE AND FEDERAL LAWS THAT LONG AGO BANNED SUCH ADS AS IN CLEAR VIOLATION OF ANTIDISCRIMINATION STATUTES THIS IS NOT POLITICAL CORRECTNESS RUN AMOK IT IS RATHER A SIMPLE CASE OF LEGALIZED EXTORTION SANCTIONED AND ENCOURAGED BY GOVERNMENT IN THE NAME OF FAIRNESS THE ADVERTISER HOWEVER SHOULD CONSIDER HERSELF FORTUNATE THE BUREAUCRATS NABBED HER ON SEXUAL AND RELIGIOUS GROUNDS ONLY HER USE OF THE WORD MATURE IN THE AD CONSTITUTES AGE DISCRIMINATION AS WELL 9401060093 940106 WHO'S NEWS NOVACARE INC NOVACARE INC KING OF PRUSSIA PA C ARNOLD RENSCHLER 51 YEARS OLD WAS NAMED PRESIDENT AND GENERAL MANAGER OF THE REHABILITATIONTHERAPY COMPANY'S HOSPITAL BUSINESS DR RENSCHLER'S FORMER POST PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S CONTRACT SERVICES GROUP WILL BE FILLED BY DARYL A DIXON 33 WHO WAS VICE PRESIDENT OF FIELD OPERATIONS FOR THE GROUP 9401060092 940106 PROPOSED MUNIGIFT RULE MAY INCLUDE FEDERAL RACES WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD SAID SOME CONTRIBUTIONS BY MUNICIPALBOND DEALERS TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE MAY IN FACT BE COVERED BY ITS PROPOSAL TO END PAYTOPLAY POLITICAL GIFTS ON MONDAY MSRB EXECUTIVE DIRECTOR CHRISTOPHER TAYLOR SAID THE RULE DOES NOT COVER CONTRIBUTIONS MADE TO A FEDERAL ELECTION BUT THE MSRB YESTERDAY CLARIFIED THIS TO SAY THAT WHILE IT IS GENERALLY TRUE THAT THE RULE WON'T COVER CONTRIBUTIONS MADE IN FEDERAL ELECTIONS THERE MAY BE INSTANCES WHERE THE RULE COVERS POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS RUNNING FOR FEDERAL OFFICE BOARD OFFICIALS DEFERRED ANY FURTHER COMMENT ON THE MATTER UNTIL THE PROPOSED RULE IS SENT TO THE SECURITIES AND EXCHANGE COMMISSION FOR CONSIDERATION SOON THE MSRB IS A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT AND ITS RULES ARE SUBJECT TO SEC APPROVAL SEC OFFICIALS INDICATED THAT COMMISSION CHAIRMAN ARTHUR LEVITT WHO HAS TAKEN A HANDSON ROLE IN TRYING TO RID THE MUNI MARKET OF ITS PAYTOPLAY CULTURE WANTS THE MSRB'S RULE TO BE AS INCLUSIVE AS POSSIBLE AMONG THE GIFTS COVERED BY THE PROPOSED RULE OFFICIALS INDICATED WOULD BE THOSE MADE TO MEMBERS OF CONGRESS WHO ARE RUNNING FOR STATE AND LOCAL OFFICE UNDER THE MSRB'S PROPOSAL A BOND DEALER COULDN'T DO BUSINESS WITH A JURISDICTION WITHIN TWO YEARS OF WHEN THE DEALER ITS POLITICALACTION COMMITTEE OR ITS MUNI PROFESSIONALS CONTRIBUTED TO AN OFFICIAL OF THE JURISDICTION 9401060091 940106 ABREAST OF THE MARKET INDUSTRIALS HIT A RECORD 379882 ON GAINS IN CYCLICAL OIL STOCKS BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK SHARP GAINS IN ECONOMICALLY SENSITIVE AND OILRELATED STOCKS CATAPULTED THE DOW JONES INDUSTRIAL AVERAGE TO A RECORD JUST SHY OF THE 3800 MARK STOCKS SPENT MUCH OF THE EARLY PART OF THE SESSION IN NEGATIVE TERRITORY FOLLOWING THE COURSE SET BY THE BOND MARKET BUT BUYERS EMERGED IN THE AFTERNOON CARRYING THE AVERAGE TO A GAIN OF 1492 OR 039 TO 379882 THAT TOPPED A RECORD OF 379433 SET DEC 29 TRADING ACTIVITY SWELLED TO 375134490 SHARES ON THE NEW YORK STOCK EXCHANGE UP FROM 322450880 TUESDAY AND THE HIGHEST ONEDAY TALLY SINCE SEPT 17 FOR A SECOND STRAIGHT DAY ANALYSTS ATTRIBUTED SOME OF THE BUYING TO INSTITUTIONAL INVESTORS SUCH AS PENSION FUNDS INVESTING PART OF THE NEW CASH THEY RECEIVED AT THE START OF THE YEAR CYCLICALS WERE TARGETED BECAUSE OF THE STEADY FLOW OF UPBEAT ECONOMIC STATISTICS THAT THE GOVERNMENT HAS RELEASED OVER THE PAST SEVERAL MONTHS ANOTHER DOSE OF GOOD NEWS CAME YESTERDAY MORNING WITH LABOR DEPARTMENT DATA SHOWING FACTORY ORDERS JUMPED 14 IN NOVEMBER OIL STOCKS BENEFITED FROM A SHARP RALLY IN THE PRICE OF CRUDE OIL LIGHT SWEET CRUDE FOR FEBRUARY DELIVERY JUMPED 71 CENTS TO 1535 A BARREL IN NEW YORK THE FIRST MOVE OVER 15 SINCE DEC 13 BIG GAINERS INCLUDED INTERNATIONAL PAPER WHICH RALLIED 2 3/4 TO 72 3/8 ALUMINUM CO OF AMERICA WHICH INCREASED 1 3/4 TO 72 1/4 DEERE & CO WHICH CLIMBED 1 1/4 TO 73 1/2 AND CHEVRON WHICH JUMPED 1 1/4 TO 90 3/4 BROADBASED INDEXES ALSO ADVANCED BUT LAGGED BEHIND THE DOW JONES INDUSTRIAL AND TRANSPORTATION AVERAGES THE STANDARD & POOR'S 500STOCK INDEX ROSE 060 OR 014 TO 44257 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 044 OR 017 TO 25931 AND THE DOW JONES EQUITY MARKET INDEX GAINED 058 OR 013 TO 44256 THERE WERE 1196 BIG BOARD ADVANCERS AND 999 DECLINERS THE NASDAQ COMPOSITE INDEX INCREASED 377 OR 049 TO 77805 TECHNOLOGY ISSUES WHICH ARE WELL REPRESENTED IN THE NASDAQ STOCK MARKET WERE AMONG THE STRONGEST AREAS APPLE COMPUTER JUMPED 2 1/4 TO 33 3/4 MICROSOFT INCREASED 1 3/4 TO 82 1/4 AND CISCO GAINED 1 1/2 TO 66 1/2 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 143 OR 030 TO 47879 ITS 10TH STRAIGHT DAILY RISE WHILE THE MARKET AS A WHOLE MANAGED TO SHAKE OFF THE BOND MARKET TREND BEFORE THE CLOSE MANY FINANCIALRELATED AND UTILITY STOCKS COULDN'T BANKS WERE MODERATELY LOWER WITH WELLS FARGO & CO DOWN 1 3/4 TO 128 1/8 AND CHASE MANHATTAN OFF 3/8 TO 33 1/8 THE DOW JONES UTILITIES AVERAGE FELL 257 OR 113 TO 22403 AMID THE BUYING THERE WERE ALSO SHARP LOSSES BORDEN PLUNGED 2 3/8 OR 13 TO 15 7/8 AFTER THE NEW YORK FOOD COMPANY DISCLOSED DETAILS OF ITS RESTRUCTURING PLANS INVESTORS WERE DISAPPOINTED THE COMPANY WON'T BE MORE AGGRESSIVE IN SELLING ASSETS ALSO BORDEN SAID IT MAY HALVE ITS ANNUAL DIVIDEND TO 30 CENTS A SHARE VOLUME WAS 44 MILLION SHARES ON NASDAQ MOBILE TELECOMMUNICATIONS PLUMMETED 9 5/8 OR 37 TO 16 1/2 ON VOLUME OF NEARLY 14 MILLION SHARES FACING CHEAPER RATES FROM ITS COMPETITION THE JACKSON MISS COMPANY CUT ITS MONTHLY BASE PRICE ON ITS 90OWNED SKYTEL NATIONWIDE PAGING SERVICE TO 39 FROM 69 ITS PLANO TEXAS RIVAL PAGING NETWORK INC LOST 1 3/4 TO 27 3/4 ALSO ON NASDAQ EUGENE PERONI TECHNICAL ANALYST AT JANNEY MONTGOMERY SCOTT SAID SOME OF THE LAGGARDS IN 1993 ROSE AS INVESTORS BET ON A TURNAROUND MERCK & CO HURT LAST YEAR BY WORRIES ABOUT HEALTHCARE REFORMS JUMPED 1 1/4 TO 37 1/4 ON MARKETLEADING VOLUME OF 111 MILLION INTERNATIONAL BUSINESS MACHINES BATTERED BY A STRING OF RECENT QUARTERLY LOSSES ADDED 1/2 TO 59 1/2 PARAMOUNT COMMUNICATIONS ADDED 3/4 TO 78 1/4 BLOCKBUSTER ENTERTAINMENT EASED 3/8 TO 29 3/4 AND ON THE AMEX VIACOM'S CLASS B SHARES SLIPPED 1 TO 43 1/2 VIACOM HELD LASTMINUTE TALKS WITH BLOCKBUSTER ON FINANCING FOR A SWEETENED BID FOR PARAMOUNT WITH A DEADLINE TOMORROW QVC NETWORK HAS MADE THE HIGHEST OFFER FOR THE NEW YORK MEDIA COMPANY QVC SHARES ROSE 3/4 TO 40 1/2 ON NASDAQ AMERICAN DEPOSITARY RECEIPTS OF MEXICAN COMPANIES RALLIED AS THE MEXICAN STOCK MARKET JUMPED TO A RECORD WORRIES ABOUT UNREST IN SOUTHERN MEXICO CONTINUED TO FADE AS THIS WEEK'S PEASANT UPRISING APPEARED TO BE NEUTRALIZED TELEFONOS DE MEXICO A TELEPHONE SERVICE ISSUE ADDED 1 3/4 TO 68 1/2 GRUPO TRIBASA A CONSTRUCTION ISSUE ADDED 3 5/8 TO 36 1/4 SHARES OF THE REGIONAL TELEPHONE COMPANIES SLID FOR A SECOND STRAIGHT DAY AFTER MCI COMMUNICATIONS DISCLOSED DETAILS OF ITS PLANS TO BUILD LOCAL NETWORKS EXPERTS CALCULATE THAT 25 TO 30 OF REVENUES AT THE BABY BELLS COME FROM ACCESS CHARGES ASSESSED AGAINST LONG DISTANCE SERVICE PROVIDERS SUCH AS MCI SOUTHWESTERN BELL DROPPED 1 3/4 TO 38 7/8 NYNEX SLIPPED 7/8 TO 39 3/8 AMERITECH DECLINED 1 TO 73 1/2 AND U S WEST LOST 1 1/8 TO 43 3/4 MCI MEANWHILE ADDED 1/4 TO 26 7/8 ON NASDAQ KMART SLIPPED 1/2 TO 21 AFTER THE TROY MICH RETAILER DISCLOSED A RESTRUCTURING THAT INCLUDES ISSUING STOCK TARGETED AT FOUR OF ITS UNITS AND THE CLOSURE OF HUNDREDS OF STORES THE REVAMPING WILL RESULT IN A HUGE CHARGE THE COMPANY SAID 9401060090 940106 HEARD ON THE STREET DISNEY STOCK AFTER DISMAL '93 PERFORMANCE IS PRESENTING BETTER PICTURE SOME INVESTORS SAY BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS IN MOST ENTERTAINMENT COMPANIES HAD GOOD REASON TO BE POPPING THE CHAMPAGNE CORKS AT YEAR END AS THE GROUP'S STOCKS FINISHED 1993 WITH AN AVERAGE GAIN OF 46 BUT WALT DISNEY INVESTORS DIDN'T JOIN THE FESTIVITIES WHILE THEIR PEERS CELEBRATED DISNEY HOLDERS FINISHED THE YEAR DOWN 9 AMID WORRIES ABOUT THE COMPANY'S EURO DISNEY THEME PARK DECLINING THEMEPARK ATTENDANCE IN THE US AND A DROP IN INVESTORS' CONFIDENCE IN DISNEY MANAGEMENT BUT SOME HEAVYWEIGHT INVESTORS NOW ARE BEGINNING TO TALK POSITIVELY ABOUT THE STOCK FOR THE FIRST TIME IN NEARLY TWO YEARS SINCE THE STOCK BEGAN TO FALL OUT OF FAVOR AND THEN SETTLED INTO A TRADING RANGE OF 36 TO 47 LAST YEAR THE OUTLOOK MAY BRIGHTEN SOON INVESTORS ARE EXPECTING THE COMPANY TO REPORT STRONG RESULTS FOR ITS FISCAL FIRST QUARTER ENDED IN DECEMBER DREW MARCUS AN ANALYST AT ALEX BROWN & SONS RAISED HIS QUARTERLY ESTIMATE TO 60 CENTS A SHARE FROM 55 CENTS A SHARE AS A RESULT OF GANGBUSTER VIDEO AND BOXOFFICE SALES HE THINKS FILM PROFITS INCLUDING VIDEO SALES GREW 30 FOR THE QUARTER LED BY 21 MILLION COPIES OF ALADDIN VIDEO SALES AND STRONG INTERNATIONAL VIDEO SALES OF BEAUTY AND THE BEAST AND JUNGLE BOOK BUT JUST AS IMPORTANT FOR THE LONG TERM INVESTORS HAVE BEEN CHEERED BY THE GETTOUGH ATTITUDE CHAIRMAN MICHAEL EISNER HAS TAKEN RECENTLY WITH CREDITORS OF EURO DISNEY LAST WEEK MR EISNER SAID HE WOULDN'T RULE OUT CLOSING THE PARK IN FRANCE IF THE COMPANY IS UNABLE TO REACH A RESTRUCTURING WITH CREDITORS OF 6 BILLION IN EURO DISNEY DEBT INVESTORS IN THE PAST HAVE WORRIED ABOUT THE POSSIBILITY OF A LONGTERM DRAIN ON DISNEY FROM THE FRENCH THEME PARK DISNEY INITIALLY INVESTED 160 MILLION IN EURO DISNEY AND CURRENTLY OWNS 49 THE PARK HAS BEEN PLAGUED BY POOR ATTENDANCE INVESTORS ARE RECOGNIZING THAT DISNEY IS BEING COLDBLOODED ABOUT THE PARK AND THAT MEANS A SOLUTION COULD COME EARLIER RATHER THAN LATER SAID CHRISTOPHER DIXON AN ANALYST AT PAINEWEBBER WHICH RECENTLY ADDED DISNEY TO ITS FOCUS LIST OF A DOZEN OR SO STOCKS THAT IT EXPECTS WILL OUTPERFORM THE MARKET AMONG DISNEY STOCK'S BIGGEST SUPPORTERS IS GORDON CRAWFORD A HIGHLY REGARDED PORTFOLIO MANAGER AT CAPITAL RESEARCH & MANAGEMENT WHO PRAISED THE STOCK AT A BEAR STEARNS CONFERENCE IN ARIZONA LAST FALL MR CRAWFORD SAID THE IMPROVING PROSPECTS FOR A RESTRUCTURING OF EURO DISNEY ARE A MAJOR REASON TO BUY THE US COMPANY'S STOCK TOGETHER THE IMPROVING OUTLOOK FOR EURO DISNEY AND A PICKUP IN DISNEY'S US VIDEO AND BOXOFFICE SALES HAVE HELPED TO BOOST THE STOCK IN RECENT WEEKS TO THE TOP END OF THE PAST YEAR'S TRADING RANGE YESTERDAY DISNEY CLOSED AT 44 7/8 UP 1/4 INVESTORS HAVE ALSO BEGUN TO TAKE NOTICE OF DISNEY'S STOCK PRICE WHEN COMPARED WITH THE REST OF THE GROUP YOU'VE BEEN SEEING SOME SWAPPING OUT OF PARAMOUNT AND TIME WARNER WHICH PERFORMED WELL LAST YEAR AND INTO DISNEY SAYS PAINEWEBBER'S MR DIXON PARAMOUNT HAS BEEN TRADING AT AROUND 18 TIMES CASH FLOW WHILE TIME WARNER HAS TRADED AT AROUND 12 TIMES A MONEY MANAGER SAYS DISNEY STOCK EVEN AFTER ITS RECENT CLIMB TRADES AT ONLY ABOUT 10 TIMES THE COMPANY'S CASH FLOW UNLIKE OTHER ENTERTAINMENT COMPANIES BULLS SAY DISNEY HASN'T YET BENEFITED FROM TWO THINGS ITS FILMS AND CHARACTERS HAVE INCREASING VALUE AS POTENTIAL PROGRAMMING FOR EMERGING MULTIMEDIA TECHNOLOGIES AND THEY ALSO CAN BE BIG SELLERS ABROAD DISNEY HAS THE KIND OF PRODUCT WITH WORLDWIDE APPEAL THAT WILL BENEFIT FROM GATT AND NAFTA SAID MORRIS MARK A MONEY MANAGER WHO RECENTLY HAS BEEN ADDING TO HIS DISNEY HOLDINGS DISNEY HAS SHOWN A LOT OF IMAGINATION AND AN ABILITY TO CONTINUE TO CREATE NEW PRODUCTS MR MARK SAID IN FACT DISNEY IN 1994 WILL BE CHURNING OUT MOVIES AT ABOUT TWICE LAST YEAR'S PACE WE'RE BEGINNING TO SEE A RECOGNITION AMONG INVESTORS ABOUT WHAT IT WILL MEAN FOR DISNEY TO RELEASE ONE OUT OF EVERY FOUR MOVIES THAT COMES OUT OF HOLLYWOOD THIS YEAR SAYS MR DIXON DISNEY IS SCHEDULED TO RELEASE 40 MAJOR FILMS THIS YEAR ABOUT 25 OF HOLLYWOOD'S TOTAL EXPECTED OUTPUT EXCLUDING INDEPENDENT FILMS 9401060089 940106 WHO'S NEWS FORMER IBM AIDE IS NAMED CHIEF OF BOLT BERANEK BY TOM KNUDSON STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS GEORGE CONRADES A FORMER SENIOR VICE PRESIDENT AT INTERNATIONAL BUSINESS MACHINES CORP WHO WAS SHOVED ASIDE IN A MANAGEMENT SHAKEUP IN 1991 HAS BEEN HIRED TO REJUVENATE BOLT BERANEK & NEWMAN INC MR CONRADES 54 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOLT BERANEK SUCCEEDING STEPHEN R LEVY WHO WILL REMAIN CHAIRMAN AT IBM MR CONRADES WAS KNOWN FOR HIS MARKETING PROWESS AND ABILITY TO MOTIVATE EMPLOYEES CHARACTERISTICS THAT WILL BE MUCH IN DEMAND AT BOLT BERANEK WHICH HAS INCURRED LAYOFFS AND LOSSES AS CUSTOMERS IN THE THE MILITARY AND FEDERAL AGENCIES HAVE CUT SPENDING ONE MAJOR CHALLENGE FOR MR CONRADES IS TO BROADEN THE COMPANY'S REVENUE SOURCES AFTER ESTABLISHING ITSELF AS A PIONEERING HIGHTECHNOLOGY COMPANY THAT SPECIALIZES IN PACKETSWITCHING DATA COMMUNICATION BOLT BERANEK NOW RELIES ON GOVERNMENT CONTRACTS FOR ABOUT TWOTHIRDS OF ITS REVENUE MAINLY IN RESEARCH AND COMPUTER AND ACOUSTIC SYSTEMS DESIGN AN UPBEAT MR CONRADES SAYS HE SEES OPPORTUNITIES IN A NUMBER OF NEW BOLT BERANEK TECHNOLOGIES AIMED AT IMPROVING THE WAY PEOPLE AND COMPUTERS COMMUNICATE INCLUDING A HIGHSPEED COMPUTER SWITCHING DEVICE AND SOFTWARE FOR MAKING PICTURES FROM NUMERICAL DATA BY EXPANDING INTO SUCH AREAS BOLT BERANEK WILL HAVE KIND OF A NEW PAN IN WHICH TO PREPARE OUR MEALS SAYS MR CONRADES THE COMPANY'S NET LOSS FOR THE FISCAL YEAR ENDED JUNE 30 WAS 323 MILLION OR 205 A SHARE COMPARED WITH A PROFIT OF 78 MILLION OR 46 CENTS A SHARE A YEAR EARLIER REVENUE FELL 95 TO 2335 MILLION FROM 258 MILLION IN FISCAL 1992 MR CONRADES EARNED A REPUTATION AS A SHARP MARKETER BY HELPING TURN AROUND IBM'S ASIAN OPERATIONS IN 1991 AS A SENIOR VICE PRESIDENT HE WAS A CANDIDATE FOR THE COMPANY'S CHAIRMANSHIP UNTIL HE WAS PUSHED ASIDE IN A SURPRISINGLY PUBLIC MOVE BY THENCHAIRMAN JOHN AKERS MR CONRADES LANDED IN A LESS POWERFUL POSITION WITH LIMITED STAFF AND DUTIES AND LEFT THE COMPANY A FEW MONTHS LATER MANY IBM INSIDERS FELT HE WAS UNFAIRLY VICTIMIZED FOR MR AKERS'S OWN FAILINGS BOLT BERANEK OFFICIALS ARE BETTING THAT MR CONRADES CAN FIND NEW CUSTOMERS FOR TECHNOLOGIES THAT ARE PROMISING BUT HAVEN'T YET GENERATED BIG SALES MR LEVY 53 WHO IS STEPPING DOWN AS BOLT BERANEK'S TOP EXECUTIVE SAID HE WASN'T ASKED TO MOVE ASIDE THIS WAS ENTIRELY INITIATED BY ME HE SAID I'VE BEEN CHIEF EXECUTIVE OFFICER FOR 17 YEARS THERE AREN'T TOO MANY PEOPLE I WOULD STEP ASIDE FOR JOHN LOGAN EXECUTIVE VICE PRESIDENT OF THE ABERDEEN GROUP INC A MARKET RESEARCH AND CONSULTING COMPANY IN BOSTON APPLAUDED THE MOVE FANTASTIC MR LOGAN SAID BBN IS A TERRIFIC TECHNOLOGICAL COMPANY AND CONRADES IS THE KIND OF PERSON WHO CAN TAKE THAT KNOWLEDGE TO THE MARKETPLACE MR LOGAN SAID HE KNOWS WHAT THE BIG DATA CENTERS NEED HOW THEY NEED IT SUPPLIED AND THROUGH WHAT CHANNELS 9401060088 940106 WORLD MARKETS TOKYO STOCKS JUMP 24 ON BRIGHTER PROSPECTS FOR EXPORTERS AS THE JAPANESE YEN WEAKENS BY JATHON SAPSFORD STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE STOCKS JUMPED 24 WEDNESDAY AS INVESTORS ENCOURAGED BY BRIGHTER EXPORT PROSPECTS BECAUSE OF A WEAKENING YEN SNAPPED UP SHARES IN BLUECHIP EXPORTERS IN THE FIRST FULL TRADING SESSION OF THE YEAR THE NIKKEI 225STOCK AVERAGE SURGED 41374 POINTS TO 1778348 THE ADVANCE WAS LED BY KEY EXPORTING SECTORS SUCH AS AUTO AND ELECTRONICS MAKERS THE CURRENCY MARKET REALLY GAVE A BOOST TO STOCKS SAID ISAO TAKAHASHI GENERAL MANAGER OF JAPANESE EQUITY TRADING AT JAMES CAPEL PACIFIC LTD AT 11312 YEN TO THE DOLLAR AT THE CLOSE OF TRADING WEDNESDAY IN TOKYO THE GREENBACK WAS HOVERING NEAR ITS HIGHEST LEVELS AGAINST THE YEN IN ROUGHLY EIGHT MONTHS THE TREND MARKS A MODERATE REVERSAL OF THE SITUATION LAST YEAR A STRONG YEN MAKES GOODS PRODUCED IN JAPAN MORE EXPENSIVE IN FOREIGN MARKETS AFTER WATCHING THE DOLLAR FALL TO NEARLY 100 YEN TO THE DOLLAR LAST YEAR JAPANESE CORPORATIONS NOW ARE ENJOYING A LITTLE RELIEF FROM THE PRESSURES THE WEAK DOLLAR HAS PUT ON THEIR BALANCE SHEETS MANY TRADERS SAID THE BENEFITS HAVE BEEN BOOSTED BY ECONOMIC RECOVERY IN THE US A MAJOR JAPANESE EXPORT MARKET SUCH BULLISH TALK IS COMMON IN JAPAN AROUND THE BEGINNING OF EVERY YEAR THIS YEAR MANY INVESTORS EVEN SAID JAPAN'S EQUITY MARKETS MAY START TO ATTRACT SOME OF THE MONEY THAT HAS DRIVEN OTHER ASIAN BOURSES TO RECORD HIGHS IN RECENT MONTHS ONE OF THE ARGUMENTS THAT YOU HEAR IS THAT OTHER ASIAN MARKETS ARE SMALL AND ALREADY HAVE HAD A GOOD RUN SO SOONER OR LATER THE MONEY'S GOING TO HAVE TO FLOW TO TOKYO SAID JARDINE FLEMING SECURITIES SALESMAN PAUL MIGLIORATO STILL MR MIGLIORATO AND OTHERS SAID INVESTORS IN JAPANESE STOCKS FACE MANY UNCERTAINTIES NOT THE LEAST OF WHICH IS A FRACTIOUS PARLIAMENTARY DEBATE ABOUT POLITICAL REFORM MANY SEE THE DEBATE AS DELAYING GOVERNMENT STEPS TO BOOST JAPAN'S FLAGGING ECONOMY LONDON AND FRANKFURT SHARES RETREATED AS EACH MARKET WAS DRAGGED DOWN BY FUTURES DEALINGS BUT STOCKHOLM EQUITIES ROSE TO A SECOND CONSECUTIVE RECORD THE SYDNEY MARKET CLIMBED TO A NEW SIXYEAR HIGH AND TAIPEI PRICES SOARED 57 TO A THREEYEAR HIGH ON RECORD VOLUME WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11174 UP 026 REFLECTING HIGHER ASIA/PACIFIC AND AMERICAN MARKETS AND LOWER EUROPEAN MARKETS POLLUTION STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7642 UP 182 OR 24 WITH CLASS B SHARES OF LAIDLAW OF CANADA RISING 67 IN ITS LOCAL CURRENCY WATER UTILITIES STOCKS TRAILED AT 12568 DOWN 186 OR 15 WITH NORTH WEST WATER GROUP OF THE UNITED KINGDOM SLIDING 23 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 293 POINTS TO 33792 THE FT 30STOCK INDEX FELL 58 POINTS TO 25462 VOLUME WAS 908 MILLION SHARES COMPARED WITH 107 BILLION SHARES A DAY EARLIER PESSIMISM IN THE FUTURES MARKET ABOUT THE INTERESTRATE OUTLOOK PRESSURED BIG STOCKS RECENT SIGNS OF AN ECONOMIC PICKUP INCLUDING HIGHER CONSUMER SPENDING HAVE DASHED HOPES THAT LENDING RATES WILL FALL EARLY THIS YEAR A PROSPECT THAT SENT STOCKS UP SHARPLY LAST MONTH DESPITE PROFITTAKING IN LARGECAPITALIZATION STOCKS SOME SMALL COMPANIES POISED TO BENEFIT FROM ECONOMIC RECOVERY POSTED GAINS IN FRANKFURT THE DAX 30STOCK INDEX WHICH HAD SET A NEW HIGH IN THIS YEAR'S OPENING SESSION FELL 2017 POINTS TO 223341 AFTER LOSING 1440 POINTS A DAY EARLIER THE STOCK MARKET WAS PUSHED DOWN BY THE FUTURES MARKET BUT SENTIMENT ABOUT THE CORRECTION WAS POSITIVE FOLLOWING THE STRONG YEAREND GAINS SOME PARTICIPANTS SHRUGGED OFF GERMANY'S HIGHER UNEMPLOYMENT FIGURES FOR DECEMBER IN PARIS FOLLOWING A HIGHER OPENING STOCKS ENDED WITH A 11 LOSS FROM A SHARP BOUT OF PROFITTAKING WHICH DIDN'T SURPRISE PARTICIPANTS GIVEN EQUITIES' RECENT HEIGHTS AN UPSWING IN OIL PRICES FED FEARS THAT US INFLATION AND THUS INTEREST RATES WILL RISE AND CAUSE US STOCKS TO TUMBLE IN MILAN PRICES FELL BROADLY PARTLY FROM TECHNICAL DEADLINES AND FROM MORE LIGHTENING OF POSITIONS AHEAD OF TODAY'S ITALIAN HOLIDAY IN STOCKHOLM'S HALFDAY SESSION BEFORE THE MARKET'S CLOSURE FOR A SWEDISH HOLIDAY TODAY STOCKS' CLIMB INTO RECORD TERRITORY WAS LED BY THE TELECOMMUNICATIONS SECTOR AND IN BRUSSELS SHARES ENDED AT A RECORD HIGH TOPPING THE MARK SET MONDAY GAINS WERE EVENLY SPREAD AMONG CYCLICAL INDUSTRIAL FINANCIAL AND RETAILING SHARES IN MEXICO CITY THE IPC INDEX SOARED 39 TO A RECORD AS A PEASANT UPRISING APPEARED TO BE NEUTRALIZED AND FOREIGN BARGAIN HUNTERS ESPECIALLY US INVESTORS INJECTED FRESH CASH INTO THE MARKET IN SYDNEY STOCKS' GAIN WAS LED BY A STRONG PERFORMANCE BY GOLD ISSUES FOREIGN INVESTORS CONTINUED TO BE BIG BUYERS IN TAIPEI ON THE MARKET'S FIRST TRADING DAY THIS YEAR PRICES SKYROCKETED ON RECORD VOLUME OF 33 BILLION SHARES AS INVESTORS AND SPECULATORS REACTED FAVORABLY TO THE PROPOSED CAPITALGAINS TAX ON SECURITIES INVESTORS WERE OPTIMISTIC THAT THE TAX WOULDN'T AFFECT MOST INDIVIDUAL INVESTORS FINANCIAL ISSUES JUMPED 68 TEXTILES 58 AND ELECTRONICS ISSUES 57 AND IN SEOUL STOCKS CLIMBED 11 ON EXPECTATIONS OF A PEACEFUL SETTLEMENT OF CONFLICTS OVER NORTH KOREA'S SUSPECTED NUCLEARDEVELOPMENT PROJECTS SENTIMENT ALSO WAS BOOSTED BY SPECULATIVE NEWS REPORTS OF A SINOSOUTH KOREAN SUMMIT THESE FACTORS HEIGHTENED HOPES FOR EXPANDED ECONOMIC COOPERATION BY THE TWO KOREAS AND CHINA BUT IN HONG KONG SHARES FELL AS HEAVY PROFITTAKING BROKE A STREAK OF RECORD HIGHS THE BENCHMARK INDEX WAS TUGGED BACK AND FORTH BY BULLISH INVESTORS AND THOSE WHO WERE TURNING CAUTIOUS SHARES SLUMPED AT THE OPENING WEIGHED DOWN BY THE PREVIOUS DAY'S WEAKNESS OF HONG KONG STOCKS THAT ALSO TRADE IN LONDON AFTER BOUNCING BACK UP INTO POSITIVE TERRITORY PRICES WERE UNDERCUT IN LATE TRADING BANKS WERE AMONG THE FEW ADVANCERS AND UTILITIES POSTED THE BIGGEST LOSSES IN SINGAPORE STOCKS GAVE UP EARLY GAINS AND TUMBLED 16 ON RUMORS THAT SENIOR MINISTER LEE KUAN YEW WAS ILL SOME TALK OF COMING HIGHER INTEREST RATES ADDED TO THE JITTERS IN MANILA SHARES SLUMPED 23 IN HEAVY VOLUME HURT BY PROFITTAKING AFTER THREE STRAIGHT DAYS IN RECORD TERRITORY IN BANGKOK TALK OF A CAPITALGAINS TAX WAS PARTLY CITED FOR SPOOKING THE MARKET AND SPURRING A 25 SELLOFF ON RECORD VOLUME 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 9401060087 940106 MONEYFUND YIELDS SUBJECT TO TAX ROSE ASSETS FELL IN WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS ROSE A BIT WHILE ASSETS FELL IN THE WEEK ENDED TUESDAY IBC/DONOGHUE INC'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS INCHED UP TO 278 FROM 276 ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS CREPT TO 275 FROM 272 WHILE THE 30DAY SIMPLE YIELD ROSE TO 272 FROM 27 THE 30DAY COMPOUND YIELD ALSO EDGED UP TO 275 FROM 274 ASSETS OF 635 TAXABLE FUNDS TWO FEWER THAN THE PREVIOUS WEEK FELL BY 661 BILLION TO 47344 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS TOOK OUT 715 BILLION WHILE INDIVIDUAL INVESTORS PUT IN 5348 MILLION WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE CHANGES IN YIELDS AND ASSETS TO SEASONAL ADJUSTMENTS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 58 DAYS THE AVERAGE TAXEXEMPT SEVENDAY COMPOUND YIELD ROSE TO 236 FROM 219 IN THE LATEST WEEK COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST TAXFREE YIELD IS EQUIVALENT TO A TAXABLE 369 FOR SOMEONE PAYING 36 IN TAXES AND TO 391 FOR THOSE WHO PAY 396 ASSETS OF 339 TAXEXEMPT FUNDS ONE MORE THAN LAST WEEK FELL BY 226 BILLION TO 10569 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY SHORTENED BY TWO DAYS TO 60 DAYS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE A SUBSIDIARY OF IBC USA PUBLICATIONS INC 9401060086 940106 FEDERAL PANEL SEEN RECOMMENDING LAWS THAT FAVOR UNIONS WASHINGTON A FEDERAL COMMISSION SET UP TO LOOK AT LABORMANAGEMENT RELATIONS IS LIKELY TO RECOMMEND CHANGES THAT WILL TILT LABOR LAWS TOWARD UNIONS FORMER NATIONAL LABOR RELATIONS BOARD GENERAL COUNSEL JERRY HUNTER SAID MR HUNTER SAID IN AN INTERVIEW THAT HE EXPECTS THE PANEL CALLED THE COMMISSION ON WORKERMANAGEMENT RELATIONS TO PROVIDE A SPRINGBOARD FOR THE CLINTON ADMINISTRATION TO RETURN TO THE GOOD GRACES OF ORGANIZED LABOR RELATIONS HAVE BEEN STRAINED BETWEEN THE WHITE HOUSE AND UNIONS SINCE THE ADMINISTRATION STRONGLY BACKED THE NORTH AMERICAN FREE TRADE AGREEMENT SPECIFICALLY MR HUNTER BELIEVES THAT THE PANEL WILL PROPOSE SPEEDING UP THE MULTISTEP UNIONELECTION PROCESS A CHANGE THAT ORGANIZED LABOR HAS BEEN SEEKING FOR SEVERAL YEARS THE CURRENT SYSTEM FORCES UNIONS TO COLLECT SIGNATURES BEFORE THEY PETITION FOR FORMAL ELECTIONS THE PROCESS CAN TAKE YEARS AND DRAIN UNION COFFERS MR HUNTER SAID THE PANEL ALSO IS LIKELY TO BACK MORE SEVERE REMEDIES FOR VIOLATIONS OF LABOR LAW MOST CHARGES OF VIOLATIONS ARE BROUGHT BY UNIONS AGAINST MANAGEMENT AND ANY STIFFENING OF PENALTIES COULD MAKE COMPANY EXECUTIVES MORE RETICENT ABOUT FIGHTING UNIONS HE SAID MR HUNTER WHO WAS GENERAL COUNSEL AT THE AGENCY UNDER PRESIDENT BUSH WILL BE JOINING ST LOUISBASED BRYAN CAVE MCPHEETERS & MCROBERTS TO PRACTICE LABOR LAW MR HUNTER SAID HE IS OPTIMISTIC THAT PROPOSALS SUCH AS ESTABLISHING SEVERE PENALTIES OR MAKING UNION VOTES EASIER CAN BE STOPPED IN CONGRESS THE FACT THIS PROCESS WILL HAVE TO END UP IN CONGRESS WILL GIVE AN OPPORTUNITY TO SHOW THAT THE NLRB HAS BEEN EVENHANDEDNOT PROMANAGEMENT AS UNIONS HAVE ARGUED HE SAID MR HUNTER ALSO SAID THERE WILL BE SEVERAL SIGNIFICANT NEW CASES TO DETERMINE THE LEGALITY OF WORKERMANAGEMENT TEAMS IN CORPORATE AMERICA TWO MAJOR DECISIONS BY THE BOARD OVER THE PAST YEAR HAVE CAST DOUBT ON JUST HOW TO STRUCTURE THOSE TEAMS AND WHETHER THEY ARE LEGAL PARTICULARLY IN FIRMS WITH UNIONIZED WORK FORCES 9401060085 940106 COMPUTERS NEW SOFTWARE HELPS NETWORKS GET SMARTER BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL THE ERA OF INTELLIGENT COMPUTER NETWORKS FOR THE MASSES IS OFFICIALLY UNDER WAY TOTEM OF THE NEW AGE IS TELESCRIPT A TECHNOLOGY THAT WILL BE DEMONSTRATED TODAY BY SOFTWARE CONSORTIUM GENERAL MAGIC INC AND ITS LARGEST MEMBER AMERICAN TELEPHONE & TELEGRAPH CO TELESCRIPT ALLOWS COMPUTER USERS TO EASILY SEND ELECTRONIC AGENTS OUT ON COMPUTER NETWORKS TO FIND AND FILTER INFORMATION THESE AGENTS CAN PERFORM IN THE USERS' STEAD SUCH CHORES AS SHOPPING OR RETRIEVING NEWS TELESCRIPT CAN ALSO FILTER MESSAGES SELECT THE MOST APPROPRIATE FORM OF WIRED OR WIRELESS TRANSMISSION AND LINK DISPARATE TYPES OF COMPUTERS AND OTHER DEVICES AT&T PLANS TO HAVE A TELESCRIPTBASED NETWORK CALLED PERSONALINK UP AND RUNNING BY THIS SUMMER OVER THE NEXT DECADE GENERAL MAGIC'S BACKERS EXPECT SUCH INTELLIGENT NETWORKS TO GRADUALLY FORM LOCAL AND NATIONAL ELECTRONIC MARKETPLACES WHERE MILLIONS OF BUYERS OF PRODUCTS AND SERVICES DIRECTLY MEET SELLERS SUCH A DEVELOPMENT WOULD AMONG OTHER THINGS FUEL THE DEMAND FOR ONLINE COMPUTER SERVICES AND FOR HANDHELD PERSONAL INTELLIGENT COMMUNICATORS OR PICS AND ERODE THE MARKET SHARE OF TRADITIONAL RETAILERS AND DISTRIBUTORS IT'S A PRETTY BIG IDEA THAT HAS BEEN IN THE WORKS FOR 20 YEARS THE IDEA OF SENDING A PROGRAM FAR AWAY TO OPERATE ON YOUR BEHALF BUT THIS LOOKS LIKE ITS FIRST COMMERCIAL APPEARANCE SAYS BOB METCALFE A PIONEER IN COMPUTER NETWORKING AND NOW PUBLISHER OF INFOWORLD A COMPUTERTRADE PUBLICATION HERE IS HOW TELESCRIPT WORKS THE USER OF A DEVICE SUCH AS A PIC OR PC HAS A BUILTIN SOFTWARE ENGINE OR MODULE THAT INTERPRETS INSTRUCTIONS FROM THE USER THE INSTRUCTIONS ARE SENT IN THE FORM OF AN AGENT EITHER DIRECTLY TO SERVICE PROVIDERS SUCH AS TRAVEL AGENCIES AIRLINES NEWS SERVICES AND BANKS OR TO A HOST NETWORK SUCH AS PERSONALINK DESIGNED TO BE A CENTRALIZED ELECTRONIC MEETING PLACE FOR BUYERS AND SELLERS PERSONALINK FOR EXAMPLE MATCHES THE AGENT SENT BY THE USER TO BUY SAY A 1955 THUNDERBIRD WITH SELLERS OF THE CAR EACH SELLER HAS A COMPUTER WITH ITS OWN TELESCRIPT ENGINE THAT CAN TALK TO THE USER'S AGENT THE SELLERS' AGENTS AUTOMATICALLY RESPOND WITH BIDS THAT ARE PLACED IN THE USER'S PERSONALINK MAILBOX THERE ARE DOUBTERS HOWEVER WHO ARE CONCERNED MAINLY ABOUT THE COMPLEXITY OF BUILDING UP THE FIRST INTELLIGENT NETWORKS OF BUYERS AND SELLERS AND ABOUT THE SPEED AT WHICH PEOPLE WILL COTTON TO THE IDEA OF AUTOMATED ELECTRONIC MESSAGING EARLIER ATTEMPTS TO CREATE ELECTRONIC MARKETPLACES FOR SHOPPING BANKING AND NEWS RETRIEVAL WERE EXPENSIVE FLOPS THE CURRENT LEADING PROVIDERS OF ONLINE SERVICES ARE EXPERIENCING SOLID GROWTH NOW BUT STILL HAVE PENETRATED ONLY 5 OF THE PERSONALCOMPUTER UNIVERSE MOREOVER WHILE TELESCRIPT PERFORMS FLAWLESSLY IN SENDING OUT AGENTS GENERAL MAGIC AND AT&T CONCEDE IT MUST BE TWEAKED FOR GREATER PROCESSING SPEEDS IF IT IS TO SUPPORT A NETWORK AS BIG AS PERSONALINK MEANWHILE ALTHOUGH NO IMMEDIATE COMPETITORS LOOM OTHER POWERFUL COMPANIES SUCH AS ORACLE CORP SUN MICROSYSTEMS INC AND MICROSOFT CORP ARE WORKING ON THEIR OWN VERSIONS OF SMART APPLICATIONS THAT MAY NOT REQUIRE SMART NETWORKS LIKE OTHER TECHNOLOGICAL PIONEERS TELESCRIPT COULD BE SURPASSED BY A CLEVER ALTERNATIVE OR MUTATION BUT TELESCRIPT'S BACKERS ARE CONVINCED IT IS A BREAKTHROUGH BECAUSE ITS INTELLIGENT AGENTS WILL SAVE CONSUMERS A LOT OF TIME AND FIND PRODUCTS SERVICES AND INFORMATION THAT ARE OFTEN HARD OR IMPOSSIBLE TO FIND THIS IS THE BEGINNING OF CYBERSPACE WHERE YOU YOUR WISHES AND WANTS CAN BE REPRESENTED BY AGENT TECHNOLOGY SAYS MARC PORAT GENERAL MAGIC'S CHIEF EXECUTIVE OFFICER TELESCRIPT WAS DEVELOPED BY GENERAL MAGIC OVER THE PAST 3 1/2 YEARS AND IS NOW BEING SHIPPED TO THE CONSORTIUM'S PARTNERS WHICH ALONG WITH AT&T ARE MOTOROLA INC APPLE COMPUTER INC AND THE WORLD'S THREE BIGGEST CONSUMERELECTRONICS CONCERNS SONY CORP MATSUSHITA ELECTRIC INDUSTRIAL CO AND PHILIPS ELECTRONICS NV GENERAL MAGIC BASED IN MOUNTAIN VIEW CALIF IS ALSO SHIPPING MAGIC CAP A NEW OPERATING SYSTEM THAT FACILITATES THE USE OF ELECTRONIC AGENTS ON PICS PERSONAL COMPUTERS AND IN THE FUTURE SMART PHONES AND INTERACTIVE TELEVISION SETS BECAUSE MOST PEOPLE CAN'T EVEN PROGRAM THEIR VIDEOCASSETTE RECORDERS GENERAL MAGIC DOESN'T EXPECT THEM TO PROGRAM AGENTS IT DOES EXPECT THOUSANDS OF INDEPENDENT SOFTWARE DEVELOPERS AND PURVEYORS OF SERVICES AND PRODUCTS TO OFFER SIMPLE SOFTWARE MODULES ONLINE WHICH GREATLY SIMPLIFY THE SENDING OF AN AGENT THESE MODULES WILL ALLOW USERS TO SEND OUT AN AGENT TO FIND FOR INSTANCE A HOTEL AIRLINE AND CAR FOR A VACATION BY SIMPLY SELECTING THE NECESSARY INSTRUCTIONS WITH A CLICK OF A MOUSE OR TAP OF A STYLUS FOR EXAMPLE ESHOP INC A SAN MATEO CALIF SOFTWARE COMPANY HAS LICENSED TECHNOLOGY TO AT&T PERSONALINK THAT ALLOWS MERCHANTS EASILY TO CUSTOMIZE PROGRAMS THAT GIVE SHOPPERS TWO CHOICES A VIRTUAL TOUR OF THEIR STORES OR ALTERNATIVELY A SHOPPING ASSISTANT WHO CAN PROCESS ORDERS FROM AN ELECTRONIC AGENT THIS SOFTWARE WILL BE AVAILABLE WHEN PERSONALINK STARTS OPERATION OTHER INITIAL PERSONALINK SERVICES WILL INCLUDE AN ELECTRONIC MAIL SERVICE THAT ASSIGNS PRIORITIES TO MESSAGES A DAILY NEWS SERVICE FROM MEAD DATA CENTRAL AND A CONNECTION TO THE SKYTEL CORP PAGING NETWORK ABOUT 20 OTHER SOFTWARE DEVELOPERS SUCH AS NEWS ELECTRONIC DATA INC A NEWS CORP UNIT WILL ANNOUNCE APPLICATIONS DESIGNED INITIALLY JUST FOR THE MAGIC CAP OPERATING SYSTEM OR TO LINK MAGIC CAP DEVICES TO ONLINE SERVICES INDUSTRY EXPERTS PREDICT THAT TELESCRIPT AND MAGIC CAP WILL HELP ACCELERATE THE GROWTH IN SUBSCRIBERS TO ONLINE SERVICES AND RESEARCH FIRMS SUCH AS BIS STRATEGIC DECISIONS NORWELL MASS PREDICT THE NEW TECHNOLOGIES WILL HELP FOSTER GROWTH FOR PORTABLE WIRELESS DEVICES BIS EXPECTS ANNUAL SHIPMENTS OF SUCH DEVICES TO REACH TWO MILLION IN 1997 BUT IT MAY TAKE UP TO A DECADE FOR A UBIQUITOUS AGENTBASED ELECTRONIC MARKETPLACE TO EMERGE PARTLY BECAUSE OF INITIALLY HIGH COSTS FOR HANDHELD DEVICES AND FOR TRANSACTION AND TRANSMISSION FEES THEN THERE IS THE CHICKENANDEGG PROBLEM SELLERS WILL BE RELUCTANT TO INVEST IN AGENTBASED SERVICES UNTIL THEY SEE SUBSCRIBERS AND VICE VERSA AT&T IS IN EFFECT CREATING A BIG CHICKEN BY POURING AN ESTIMATED 20 MILLION TO 30 MILLION SO FAR INTO PERSONALINK WILLIAM FALLON AT&T'S DIRECTOR OF MARKETING FOR CONSUMER MESSAGING SAYS THE COMPANY PLANS TO KEEP ITS FEES LOW AND IS PREPARED FOR A SLOW GRADUAL ADOPTION OF ITS SERVICE WE DECIDED TO BUILD A NEW NETWORK SERVICE AROUND TELESCRIPT BECAUSE IT GIVES US THE ABILITY TO GIVE CUSTOMERS THESE PERSONALIZED INTELLIGENT AGENTS MR FALLON SAYS IT'S NOT JUST INFORMATION RETRIEVAL OR SHOPPING OR MESSAGING WHICH ANY NETWORK CAN DO THAT'S A BOLD STEP THAT IS MORE COSTLY TIMECONSUMING AND DIFFICULT THAN OTHER DECISIONS WE COULD HAVE MADE BUT I WOULD HUMBLY PREDICT IT'S THE WAY NETWORKS WILL BROADLY EVOLVE 9401060084 940106 INTERNATIONAL STATE DEFENDS DECISION TO OUST BANESTO BOARD BANK OF SPAIN DOCUMENT SAYS ACCOUNTS FAILED TO REFLECT PERFORMANCE BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID SPAIN'S CENTRAL BANK ISSUED A DOCUMENT OUTLINING THE REASONS BEHIND ITS DECISION LAST WEEK TO OUST THE CHAIRMAN AND BOARD OF BANCO ESPANOL DE CREDITO SPAIN'S FOURTHLARGEST BANK THE ACCOUNTS OF BANESTO AS THE BANK IS KNOWN FAIL TO REFLECT ITS PERFORMANCE IN 1991 AND 1992 AND THE REORGANIZATION PLAN IT PRESENTED TO THE BANK OF SPAIN IN NOVEMBER WAS COMPLETELY UNREALISTIC THE DOCUMENT INDICATES FOR INSTANCE BANESTO PROJECTED PROFIT FOR 1994 OF 50 BILLION PESETAS 3485 MILLION EVEN THOUGH THE BANK WASN'T GENERATING INCOME FICTITIOUS OR OVERVALUED ASSETS UNCALCULATED CREDIT RISKS AND INFLATED CAPITAL GAINS ON ASSET SALES ARE SOME OF THE FACTORS THAT EXPLAIN WHY BANESTO FACED A FINANCIAL SHORTFALL OF AT LEAST 500 BILLION PESETAS AT JUNE 30 1993 COMPARED WITH CAPITAL AND RESERVES OF 359 BILLION PESETAS ACCORDING TO THE BANK OF SPAIN REPORT MEANWHILE FORMER MANAGEMENT AT BANESTO ISSUED ITS FIRST STATEMENT SINCE IT WAS FIRED DEC 28 CLARIFYING THAT IT HADN'T YET RESPONDED TO THE BANK OF SPAIN'S TAKEOVER DECISION BANK OF SPAIN OFFICIALS SAID THEY EXPECTED THE FORMER BANESTO CHAIRMAN MARIO CONDE AND OTHER FORMER BOARD MEMBERS TO TAKE LEGAL ACTION AGAINST THEM MR CONDE IS EXPECTED TO ARGUE THAT THE FIGURES PRESENTED IN THE BANK OF SPAIN DOCUMENT ARE EXAGGERATED AND TO TRY TO FAULT THE CENTRAL BANK'S MOVE ON TECHNICAL GROUNDS UNDER SPANISH LAW MR CONDE HAS 15 DAYS FROM DEC 28 TO PRESENT HIS CASE AGAINST THE BANK OF SPAIN BEFORE THE MINISTRY OF ECONOMY THE UNDERFUNDING OF PROVISIONS AND THE OVERVALUATION OF ASSETS PRESENT POTENTIAL LOSSES FOR THE BANK OF 341 BILLION PESETAS THE CENTRAL BANK SAID THIS FIGURE DOESN'T INCLUDE PROVISIONS FOR LOSSES ON BANESTO'S STAKE IN ITS INDUSTRIAL HOLDING COMPANY CORP INDUSTRIAL Y FINANCIERA DE BANESTO NOR THE LACK OF PROVISIONS FOR LOANS ESTIMATED AT 28 BILLION PESETAS EXTENDED TO EMPLOYEES FOR THE PURCHASE OF THE BANK'S TREASURY STOCK SOME 3398 BILLION PESETAS OF THE BANK'S LOANS OF MORE THAN 250 MILLION PESETAS EACH FOR EXAMPLE SHOULD BE RECLASSIFIED AS NONPERFORMING WHICH REQUIRES ADDITIONAL PROVISIONING OF 1449 BILLION PESETAS THE CENTRAL BANK SAID A YEAR AGO THE CENTRAL BANK ESTIMATED THESE RECLASSIFICATIONS AT ONLY 120 BILLION PESETAS AND THEIR PROVISIONING REQUIREMENTS AT 528 BILLION PESETAS IN DETAILING BANESTO'S ALLEGED BOOKKEEPING SLEIGHT OF HAND THE BANK OF SPAIN DESCRIBES HOW BANESTO EXTENDED LOANS OF 619 BILLION PESETAS TO OASIS INTERNATIONAL GROUP A SPANISH LEISURE COMPANY IN WHICH THE BANK ALSO HAS A DIRECT AND INDIRECT STAKE VALUED AT 203 BILLION PESETAS THROUGH THE RELATIONSHIP BANESTO HID LOSSES FOR OASIS AND WAS IN A POSITION TO INCLUDE UNWARRANTED PROFITS ON ITS ACCOUNTS AND THOSE OF OTHER COMPANIES IN ITS GROUP THE REPORT SAID THE BANK OF SPAIN CALCULATES BANESTO'S UNACCOUNTED LOSSES ON ITS BUSINESS WITH OASIS AT MORE THAN 25 BILLION PESETAS ALSO INCLUDED IN THE 341 BILLION FIGURE ARE CAPITAL LOSSES OF 715 BILLION PESETAS THAT BANESTO FACED ON ITS STOCK INVESTMENT PORTFOLIO AT JUNE 30 1993 NOT INCLUDING ITS STAKE IN CORP INDUSTRIAL & FINANCIERA FOR EXAMPLE BANESTO'S SHAREHOLDING IN THE OFFSHORE COMPANIES BRIGHTSUN LTD AND BANESTO HOLDING LTD SUFFERED CAPITAL LOSSES OF 358 BILLION PESETAS CAUSED PRIMARILY BY EXCHANGERATE DIFFERENCES USED TO ARTIFICIALLY INFLATE THE TWO COMPANIES' NET WORTH THE REPORT SAYS IN ANOTHER INSTANCE BANESTO REPORTED UNJUSTIFIED PROFIT FROM ITS 28 STAKE IN SPANISH INSURER LA UNION & EL FENIX ESPANOL YESTERDAY ALBERTO DE LA PUENTE THE ADMINISTRATOR WHO HAS BEEN IN CHARGE OF LA UNION SINCE SPANISH AUTHORITIES REMOVED ITS MANAGEMENT DEC 30 SAID LA UNION HAS REVISED ITS 1992 ACCOUNTS TO SHOW A LOSS OF 118 BILLION PESETAS IN 1992 INSTEAD OF A PROFIT OF 408 MILLION PESETAS I JUST DON'T KNOW WHAT WAS GOING THROUGH THEIR HEADS FOR THEM TO REPORT A PROFIT HE SAID IT'S VERY SURPRISING LA UNION HE NOTED WILL MERGE WITH AGF SEGUROS THE SPANISH UNIT OF FRENCH INSURER ASSURANCES GENERALES DE FRANCE THE NATIONAL STOCK EXCHANGE COMMISSION APPROVED THE OPERATION TUESDAY AFTER MONTHS OF HEATED DEBATE BETWEEN AGF WHICH OWNS 24 OF LA UNION AND BANESTO OVER THE SPANISH INSURER'S ACCOUNTS IN ITS REPORT THE BANK OF SPAIN ALSO REVEALS THAT BANESTO FACES CAPITAL LOSSES OF 81 BILLION PESETAS ON ITS 80 STAKE IN CORP INDUSTRIAL Y FINANCIERA AS OF JUNE 1993 IT ALSO SHOWED A 13 BILLION PESETA SHORTFALL ON THE HOLDING COMPANY'S PROVISIONS LASTLY THE CENTRAL BANK SAYS THE BANK HAD 201 BILLION PESETAS OF EXPENDITURES INCLUDED AS ASSETS ON ITS ACCOUNTS IN JUNE BANKERS AND ANALYSTS SAID THEY WERE ASTONISHED THAT BANESTO WAS ABLE TO PUSH ITS ACCOUNTS PAST AUDITORS AND GOVERNMENT AUTHORITIES FOR AS LONG AS IT DID MANY WERE CONCERNED THAT THE BANK'S ACCOUNTS ARE SO OBFUSCATED THAT ITS FINANCING NEEDS COULD BE FAR HIGHER THAN THOSE OUTLINED BY THE CENTRAL BANK POSSIBLY DOUBLE THE AMOUNT 9401060082 940106 ON ARKANSAS SEX NOT INHALING AND WHITEWATER BY ROBERT L BARTLEY WHEN THE GENNIFER FLOWERS TAPES HIT THE HEADLINES DURING THE 1992 CAMPAIGN OUR ALBERT HUNT WROTE A COLUMN DEFENDING CANDIDATE BILL CLINTON AGAINST HER SORDID SLEAZY STORY AND ALSO LAYING OUT CONDITIONS THAT MIGHT MAKE A CANDIDATE'S SEX LIFE PERTINENT FOR EXAMPLE ONE IF THE CANDIDATE LIES WHILE MOST OF US WOULD INSTINCTIVELY AGREE THE EXCEPTION IS INTERESTING WE DON'T CARE WHETHER HE DID IT BUT WE DO CARE IF HE DID AND DENIES IT WHY PRECISELY WELL WE TEACH LITTLE CHILDREN NOT TO LIE BECAUSE IT'S WRONG MORALLY BUT ALSO BECAUSE IT OFTEN HAS SERIOUS PRACTICAL CONSEQUENCES IF YOU TELL ONE LIE YOU TYPICALLY HAVE TO COVER UP BY TELLING MORE AFTER A WHILE YOU REACH THE COMPLETELY IMPLAUSIBLE AND PEOPLE STOP BELIEVING YOU AND THEY DON'T BELIEVE YOU IN THE NEXT PINCH EVEN IF THEN YOUR STORY IS TRUE AT THE PRESIDENTIAL LEVEL WE CALL THIS CREDIBILITY A LEADER WHO ISN'T BELIEVED IS NOT LIKELY TO BE EFFECTIVE A PRESIDENT NEEDS BONDS OF TRUST WITH THE PEOPLE THE SHREDDING OF THESE BONDS NOT SOME TWOBIT BURGLARY IS WHY PRESIDENT NIXON HAD TO LEAVE OFFICE ELECTION AS PRESIDENT GIVES YOU A BIRTHRIGHT OF CREDIBILITY BUT YOU CAN ONLY GO TO THE WELL SO MANY TIMES AND HERE IS THE REAL DANGER TO PRESIDENT CLINTON IN THE NEW SEX ALLEGATIONS RAISED BY STATE TROOPERS IN ARKANSAS THEY ERODE CREDIBILITY JUST WHEN HE NEEDS ALL HE CAN MUSTER TO DEAL WITH THE FINANCIAL QUESTIONS WE CALL THE WHITEWATER ISSUE SEXUAL ISSUES ARE ALWAYS PROBLEMATICAL OF COURSE IT IS UNSEEMLY TO GOSSIP ABOUT THE MOST PRIVATE ASPECTS OF SOMEONE ELSE'S LIFE AND THERE'S NO CONSENSUS ON STANDARDS TO APPLY TO POLITICAL LEADERS WHILE SOME WOULD PUNISH ANY INFIDELITY OTHERS SCOFF THAT RULERS HAVE ALWAYS HAD CONCUBINES AND EVEN HAREMS STILL OTHERS STARTING HERE WOULD SAY THAT DWIGHT EISENHOWER SLEEPING WITH HIS DRIVER IN THE MIDST OF WORLD WAR II IS ONE THING WHILE THE WANTON PROMISCUITY THE TROOPERS ALLEGE IN ARKANSAS IS QUITE ANOTHER THESE ALLEGATIONS WERE FIRST DETAILED BY DAVID BROCK IN THE AMERICAN SPECTATOR AND THERE WAS AN INITIAL ATTEMPT TO IMPUGN HIS SCOOP WITH THE LABEL CONSERVATIVE AS IF THAT WERE A DREAD DISEASE BUT THE LOS ANGELES TIMES QUICKLY CONFIRMED THE ESSENCE OF THE BROCK REPORT BY PUBLISHING ITS OWN EXTENSIVE INVESTIGATION THE NET IS THAT TWO TROOPERS TOLD THE SAME STORIES ON THE RECORD TO TWO PUBLICATIONS AND WERE SUPPORTED BY TWO OTHER TROOPERS TALKING ON A NOTFORATTRIBUTION BASIS AMONG OTHER THINGS THEY SUPPORT MISS FLOWERS'S ORIGINAL ACCOUNT THERE ARE ALSO HER TAPES PLUS THE LA TIMES STUDY OF OFFICIAL PHONE RECORDS SUPPORTING AT LEAST ONE PART OF THE TROOPERS' STORY VOTERS WILL HAVE TO MAKE UP THEIR OWN MINDS ON BOTH TRUTH AND RELEVANCE BUT WITH DUE RESPECT FOR THE PROBLEM OF PROVING A NEGATIVE THE PRESIDENTIAL RESPONSE HAS SCARCELY BUILT CONFIDENCE THE WHITE HOUSE BRANDED THE TROOPERS' CHARGES AS OUTRAGEOUS BUT WHEN A REPORTER ASKED SO NONE OF THIS EVER HAPPENED THE PRESIDENT SUFFERED A FIT OF STAMMERING MR BROCK MAKES THE POINT THAT THE ORIGINAL GENNIFER FLOWERS DENIALS ALSO HAD A SLIPPERY QUALITY IN CONFESSING MARIJUANA EXPERIMENTS CANDIDATE CLINTON PROTESTED THAT HE DIDN'T INHALE ARE THE PRESENT PROTESTS OF THE SAME ILK AS THE TROOPERS' STORY SPREAD BETSEY WRIGHT THE SOMETIME CLINTON AIDE WHO POPULARIZED THE PHRASE BIMBO ERUPTION DECAMPED TO LITTLE ROCK ALONG THE WAY CONSULTING HER FAVORITE PRIVATE EYE SAN FRANCISCOBASED JACK PALLADINO SOON STORIES BEGAN TO APPEAR ABOUT THE TROOPERS' WARTS A SEX HARASSMENT CHARGE AGAINST ONE TROOPER TURNED OUT TO HAVE BEEN DISMISSED AN INSURANCE COMPANY LITIGATOR CHARGED THE TWO TROOPERS LIED IN AN INSURANCE SCAM IT TURNS OUT THEY DID GET DRUNK AND WRECK A STATE CAR BUT THE LITIGATION IS ABOUT WHO SHOULD PAY MEDICAL BILLS AND MS WRIGHT PROUDLY DISPLAYED AN AFFIDAVIT FROM TROOPER DANNY FERGUSON SAYING PRESIDENT CLINTON NEVER OFFERED OR INDICATED A WILLINGNESS TO OFFER ANY TROOPER A JOB IN EXCHANGE FOR SILENCE OR HELP IN SHAPING THEIR STORIES REINTERVIEWED BY THE LA TIMES MR FERGUSON SAID YES THE PRESIDENT CALLED YES THEY TALKED ABOUT WHAT TROOPERS WERE GOING TO SAY ABOUT THE SEX CHARGES YES THEY TALKED ABOUT TWO DIFFERENT JOBS BUT THE QUID PRO QUO WAS NEVER EXPLICITLY EXPRESSED THAT IS HE DIDN'T INHALE GETTING INTO A SPITTING MATCH WITH HIS OWN FORMER SECURITY GUARDS WILL SURELY DEPLETE A PRESIDENT'S RESERVOIR OF CREDIBILITY WORSE THIS AMPLIFIES ALL THE DOUBTS IN THE WHITEWATER CASE HERE THE SUSPICION IS THAT FUNDS FROM A FAILING SAVINGS AND LOAN WERE DIVERTED INTO WHITEWATER DEVELOPMENT A REAL ESTATE VENTURE PARTLY OWNED BY THE CLINTONS WHATEVER ELSE THE DEFENSIVE THEMES SOUND FAMILIAR IT'S AN OLD STORY WE HEAR FOR EXAMPLE IS THAT A DENIAL OR NOT IT WAS A MONEYLOSING VENTURE AS IF IT WOULD BE PERFECTLY OK TO FLOAT OFF YOUR REAL ESTATE INVESTMENT LOSS ON THE TAXPAYER THROUGH DEPOSIT INSURANCE SO LONG AS NOTHING NEW GETS INTO YOUR OWN POCKET THE LOSS WAS NEVER DEDUCTED FOR TAX PURPOSES BUT WAS DOCUMENTED IN AN ACCOUNTANT'S REPORT THOUGH AS THE JOURNAL'S BRUCE INGERSOLL JUST DEMONSTRATED THE REPORT IGNORES MAJOR TRANSACTIONS THE CLINTONS WERE PASSIVE SHAREHOLDERS THOUGH AT ONE POINT HILLARY REQUESTED A POWER OF ATTORNEY OVER THE WHOLE BUSINESS THE RECORDS FROM VINCENT FOSTER'S OFFICE WILL BE RELEASED THOUGH IT TURNS OUT ONLY TO THE JUSTICE DEPARTMENT AND IT FURTHER TURNS OUT ONLY AFTER A DELAY FOR INVENTORY AND OF COURSE WE'VE SAID ENOUGH THE DAMAGE FROM THE TROOPERS IS CONTAINED BY A NATURAL IN THIS LIBERTINE AGE EVEN TOUCHING RELUCTANCE TO TRAFFIC IN SEXUAL GOSSIP BUT IN BOTH CASES THE EXCUSES ARE SOUNDING INCREASINGLY LAME WHITEWATER COULD BECOME BILL CLINTON'S CREDIBILITY SINKHOLE SIMPLY BECAUSE NO ONE IS INHIBITED IN TALKING ABOUT DIRTY MONEY MR BARTLEY IS EDITOR OF THE JOURNAL SEE RELATED LETTER LETTERS TO THE EDITOR TROOPER AFFIDAVIT IS A FARCE WSJ JAN 11 1993 9401060081 940106 INTERNATIONAL METALLGESELLSCHAFT AG BANK CREDITORS AGREE TO HELP RESCUE FIRM FRANKFURT METALLGESELLSCHAFT AG AND ITS BANK CREDITORS AGREED TO RAISE 27 BILLION MARKS 16 BILLION AS PART OF A RESCUE PLAN FOR THE TROUBLED GERMAN METALS AND ENGINEERING COMPANY THE COMPANY PLANS TO INCREASE EQUITY BY ISSUING 56 MILLION NEW SHARES FOR 250 MARKS EACH 144 RAISING 14 BILLION MARKS THE STEP WOULD INCREASE THE COMPANY'S NOMINAL EQUITY CAPITAL BY 280 MILLION MARKS FROM THE CURRENT 4418 MILLION MARKS GERMAN EQUITY COMMONLY CARRIES A NOMINAL FACE VALUE OF 50 MARKS A SHARE THE COMPANY DIDN'T PROVIDE A DATE FOR THE NEW SHARE OFFERING BANK CREDITORS ALSO AGREED TO A DEBTFOREQUITY SWAP TO GENERATE ANOTHER 13 BILLION MARKS IN FRESH CASH FOR THE COMPANY UNDER THE PROPOSAL ITS ROUGHLY 100 BANK CREDITORS WOULD CONVERT METALLGESELLSCHAFT BANK DEBT INTO SUBORDINATED CONVERTIBLE PARTICIPATION EQUITY A GERMAN NONVOTING EQUITY INSTRUMENT THAT CAN BE CONVERTED INTO STOCK AT A LATER DATE METALLGESELLSCHAFT ALSO WILL GET A NEW 500 MILLIONMARK CREDIT LINE THE STEPS ARE AIMED AT RESTORING CONFIDENCE IN THE GERMAN COMPANY AFTER IT RAN INTO DIFFICULTIES LATE LAST YEAR FROM A COMBINATION OF OPERATING LOSSES DEEP EXPOSURE IN OIL FUTURES MARKETS AND HEAVY SHORTTERM BANK DEBT ACCUMULATED IN FOUR YEARS OF RAPID EXPANSION THE COMPANY ALSO IS EXPECTED TO ANNOUNCE A SERIES OF DIVESTITURES AND STAFF LAYOFFS IN COMING WEEKS 9401060080 940106 WHO'S NEWS WHITE WILL RETIRE AS HEAD OF SOFTWARE AT TEXAS INSTRUMENTS DALLAS TEXAS INSTRUMENTS INC SAID THE PRESIDENT OF ITS LOSSRIDDEN SOFTWARE DIVISION IS TAKING EARLY RETIREMENT THE ELECTRONICS GIANT SAID JOHN W WHITE 55 YEARS OLD WILL LEAVE THE COMPANY JAN 31 MR WHITE A CORPORATE VICE PRESIDENT HAS BEEN PRESIDENT OF TI'S INFORMATION TECHNOLOGY BUSINESS SINCE 1989 TURNING WHAT BEGAN AS THE COMPANY'S INTERNAL COMPUTER OPERATION INTO A SOFTWARE HEAVYWEIGHT WITH MORE THAN 250 MILLION IN ANNUAL SALES BUT THE UNIT HAS REPORTED LOSSES IN RECENT QUARTERS PROMPTING CONTINUING CRITICISM FROM ANALYSTS WHO THINK TI SHOULD STICK TO ITS FLAGSHIP COMPUTERCHIP BUSINESS IT HAS BEEN A DRAIN ON TI FOR SOME TIME SAID WILLIAM J MILTON JR AN ANALYST AT BROWN BROTHERS HARRIMAN IN NEW YORK I WOULD APPLAUD A MOVE TO SPIN IT OFF IN A MOVE LAST MONTH THAT ANALYSTS SAY REFLECTED THE COMPANY'S DISAPPOINTMENT IN THE UNIT'S RESULTS TI NAMED WILLIAM F HAYES FORMERLY CHIEF OF TI'S DEFENSE BUSINESS AS A CORPORATE EXECUTIVE VICE PRESIDENT IN CHARGE OF THE SOFTWARE UNIT BYPASSING MR WHITE IN AN INTERVIEW MR WHITE SAID THERE'S NOT A DIRECT CORRELATION BETWEEN MR HAYES'S PROMOTION AND HIS DECISION TO RETIRE I'VE BEEN THINKING ABOUT THIS FOR A COUPLE OF YEARS HE SAID A TI SPOKESWOMAN SAID MR HAYES WILL ASSUME MR WHITE'S DUTIES MR WHITE SAID HE'S PROUD OF THE PROGRESS THE UNIT MADE IN MOVING FROM MAINFRAME COMPUTER TECHNOLOGY TO SOFTWARE BUILT FOR NETWORKS OF SMALLER COMPUTERS AND HE POINTS OUT THAT TI'S PRINTER AND NOTEBOOK COMPUTER MANUFACTURING OPERATION WHICH WAS UNDER HIS CONTROL UNTIL A REORGANIZATION IN NOVEMBER HAS BEEN A STRONG PERFORMER RECENTLY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY TI STOCK JUMPED 4 TO 66 A SHARE 9401060079 940106 LATE DECEMBER VEHICLE SALES PACE DECLINED BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF NORTH AMERICANBUILT PASSENGER CARS AND LIGHT TRUCKS SLID IN THE FINAL 10 DAYS OF DECEMBER TO THE LOWEST LEVEL SINCE THE SUMMER LARGELY REFLECTING SLOWER SALES DURING THE HOLIDAY SEASON NORTH AMERICANBUILT VEHICLES SOLD AT A SEASONALLY ADJUSTED SELLING RATE OF 109 MILLION IN THE LATEST PERIOD DOWN SUBSTANTIALLY FROM A STRONG 129 MILLION SELLING PACE IN THE PREVIOUS 30DAY PERIOD THE SELLING RATE EASED SLIGHTLY FROM THE 11 MILLION PACE IN THE LAST 10 DAYS OF DECEMBER 1992 ALTOGETHER AMERICANS BOUGHT 346761 NORTH AMERICANBUILT CARS MINIVANS SPORTUTILITY VEHICLES AND LIGHT TRUCKS IN THE FINAL 10 DAYS OF DECEMBER THAT'S OFF 81 FROM THE 377499 VEHICLES SOLD IN THE YEAREARLIER PERIOD WHEN CAR COMPANIES OFFERED MORE SALES INCENTIVES THIS MARKED THE LAST PERIOD THAT AUTO MAKERS WILL REPORT 10DAY CAR SALES DATA LAST MONTH GENERAL MOTORS CORP AND FORD MOTOR CO SAID THEY WOULD STOP RELEASING THE 10DAY VEHICLE SALES CHRYSLER CORP QUIT REPORTING 10DAY SALES IN 1991 ALL OF THE AUTO MAKERS WILL NOW REPORT VEHICLESALES FIGURES ON A MONTHLY BASIS FOR THE ENTIRE MONTH OF DECEMBER AUTO MAKERS SOLD 1119541 NORTH AMERICANBUILT AND IMPORTED CARS AND LIGHT TRUCKS UP 68 FROM A YEAR EARLIER THAT IS THE EQUIVALENT OF AN 119 MILLION SELLING RATE COMPARED WITH AN 112 MILLION PACE A YEAR EARLIER A TOTAL OF 139 MILLION VEHICLES WERE SOLD IN 1993 UP 83 FROM THE 129 MILLION VEHICLES SOLD A YEAR EARLIER FORD AND CHRYSLER GAINED A BIGGER SHARE OF THE US VEHICLE MARKET LAST YEAR WHILE GM'S SHARE DROPPED FORD WHICH MAKES THE BESTSELLING PASSENGER CAR AND LIGHT TRUCK IN THE US SAW ITS SHARE OF THE US CAR AND LIGHTTRUCK MARKET GROW TO 256 UP FROM 248 A YEAR EARLIER CHRYSLER'S SHARE OF THE TOTAL MARKET SWELLED 14 PERCENTAGE POINTS TO 147 OF THE USVEHICLE MARKET GM'S SHARE OF THE US MARKET DROPPED TO 336 DOWN FROM 342 JAPANESE AUTO MAKERS HELD A COMBINED 231 OF THE US VEHICLE MARKET DOWN 12 PERCENTAGE POINTS FROM A YEAR EARLIER TOTALS INCLUDE ALL VEHICLE SALES REPORTED IN THE PERIOD EXCEPT TOURISTDELIVERY SALES OF IMPORTED MODELS NOTE THERE WERE 26 SELLING DAYS IN THE MOST RECENT MONTH AND 26 A YEAR EARLIER PERCENTAGE DIFFERENCES BASED ON DAILY SALES RATE RATHER THAN SALES VOLUME 9401060078 940106 WHO'S NEWS SABA PETROLEUM CO SABA PETROLEUM CO IRVINE CALIF WILLIAM L WINELAND 43YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED TO PURSUE OUTSIDE INTERESTS HE WAS SUCCEEDED BY ILYAS CHAUDHARY 45 THE COMPANY'S CHAIRMAN 9401060077 940106 INTERNATIONAL AUTONOMY ACCORD PUTS FURTHER STRAIN ON ARAFAT'S TIES TO JORDAN'S HUSSEIN BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL AMMAN JORDAN THE MIDEAST PEACE PROCESS HAS REVIVED AN OLD RIVALRY BETWEEN KING HUSSEIN OF JORDAN AND THE PALESTINE LIBERATION ORGANIZATION'S YASSER ARAFAT YESTERDAY AS ISRAEL AND THE PLO WERE TRYING TO AGREE ON WHEN TO MEET AGAIN TO IRON OUT THEIR DIFFERENCES OVER PALESTINIAN AUTONOMY MR ARAFAT DISPATCHED HIS FOREIGN MINISTER TO AMMAN FOR EMERGENCY TALKS WITH JORDANIAN OFFICIALS THE MEETING FOLLOWED TWO UNUSUALLY BARBED SPEECHES BY KING HUSSEIN ON SATURDAY AND TUESDAY IN WHICH THE MONARCH SAID THE PLO WOULD HAVE ONE LAST CHANCE THIS WEEK TO COORDINATE STRATEGY WITH JORDAN OR JORDAN MAY BREAK RANKS AND MAKE ITS OWN PEACE WITH ISRAEL BETWEEN THEIR TALKS YESTERDAY JORDANIAN AND PALESTINIAN OFFICIALS LED BY THE PLO'S FAROUK KADDOUMI PLAYED DOWN THE CURRENT RIFT INVOKING ARAB BROTHERHOOD AND THE SPECIAL RELATIONISHIP BETWEEN JORDANIANS AND PALESTINIANS WHO COMPRISE MORE THAN HALF OF JORDAN'S POPULATION OFFICIALS SAID THE TALKS YIELDED NOTHING DECISIVE AND WOULD RESUME TODAY BUT THE KING'S RECENT SPEECHES WERE ALL TOO CLEAR HIS DISTRUST OF YASSER ARAFAT HAS REACHED THE BREAKING POINT THE MAIN BONE OF CONTENTION IS THE PLO'S REFUSAL TO SIGN AN ECONOMICCOOPERATION AGREEMENT WITH JORDAN THAT THE TWO SIDES NEGOTIATED SEVERAL MONTHS AGO THAT AGREEMENT ESTABLISHES JORDAN'S CENTRAL BANK AS THE MAIN MONETARY AUTHORITY FOR THE WEST BANK AND GAZA STRIP UNDER AUTONOMY AND MAKES THE JORDANIAN DINAR THE TERRITORIES' PRIMARY CURRENCY MR ARAFAT HAS BALKED AT THE ACCORD PLO OFFICIALS SAY BECAUSE HE STILL HOPES ISRAEL WILL ALLOW THE PALESTINIANS TO HAVE THEIR OWN CURRENCY AND CENTRAL BANK WHICH ARE IMPORTANT TRAPPINGS MR ARAFAT BELIEVES IN THE PLO'S DRIVE FOR STATEHOOD TO JORDANIAN OFFICIALS MR ARAFAT'S REFUSAL TO SIGN THE ECONOMIC PACT UNDERSCORES THEIR BELIEF THAT THE PLO IS OBSESSED WITH INDEPENDENCE AT THE EXPENSE OF COOPERATION THE PALESTINIANS HAD SOMETHING TANGIBLE IN THE ECONOMIC AGREEMENT THAT WAS SHELVED BECAUSE THEY WANT TO RUN AFTER A SYMBOL OF SOVEREIGNTY SAID JAWAD ANANI JORDAN'S INFORMATION MINISTER AND ITS LEADING PEACE NEGOTIATOR AT A LUNCHEON WITH JOURNALISTS MONDAY AND JORDAN WILL WAIT NO LONGER SAID MR ANANI CLARIFYING KING HUSSEIN'S REMARKS SYRIA MR ANANI SAID IS EXPECTED TO SIGN A DECLARATION OF PRINCIPLES WITH ISRAEL SOON AFTER PRESIDENT HAFEZ ASSAD MEETS PRESIDENT CLINTON IN GENEVA LATER THIS MONTH THE PEACE PROCESS WILL SUDDENLY ACCELERATE AT AN ALARMING SPEED HE SAID AND JORDAN WHICH SIGNED ITS OWN AGENDA FOR PEACE WITH ISRAEL IN SEPTEMBER DOESN'T WANT TO BE LEFT BEHIND IN HIS TUESDAY SPEECH KING HUSSEIN MADE THE POINT THIS WAY WHAT IS OFFERED NOW TO THE PALESTINIANS IS EITHER THAT THEY ARE STRENGTHENED BY JOINING HANDS WITH US OR THE OTHER ALTERNATIVE THERE IS NO NEED FOR ME TO PUT IT FORTH BEHIND THIS THREAT OF ABANDONING THE PLO LURKS AN ABIDING RIVALRY BETWEEN KING HUSSEIN AND MR ARAFAT IN 1970 AFTER A FAILED COUP ATTEMPT JORDANIAN TROOPS FORCED MR ARAFAT'S GUERRILLA FORCES TO FLEE JORDAN IN A BLOODY CIVIL WAR CALLED BLACK SEPTEMBER ALTHOUGH THE TWO LEADERS APPEARED TO PATCH THINGS UP OVER THE YEARS THEIR ENMITY RESURFACED IN THE MID1980S WHEN MR ARAFAT THWARTED A PEACE PLAN HATCHED BY THE KING ISRAEL AND THE REAGAN ADMINISTRATION MR ARAFAT IS SAID TO LOATH KING HUSSEIN BELIEVING THAT HE IS TRYING TO USURP HIS LEADERSHIP OF THE PALESTINIANS KING HUSSEIN FOR HIS PART WANTS TO KEEP A STRONG HAND IN THE WEST BANK JORDANIANS SAY THE TERRITORY LEGALLY BELONGED TO JORDAN UNTIL THE KING RENOUNCED IT IN DEFERENCE TO THE PLO IN 1988 IN ADDITION TO THE ECONOMIC ADVANTAGES FOR JORDAN OF MAINTAINING CLOSE LINKS WITH THE NEWLY AUTONOMOUS TERRITORIES THE KING LIKE ISRAEL MAY HAVE REASON TO BE WARY OF THE EMERGENCE OF A STRONG INDEPENDENT PALESTINE SUCH A STATE JORDANIANS SAY COULD THREATEN MR HUSSEIN'S HASHEMITE RULE IN THE KINGDOM NEXT DOOR WHERE SO MANY OF THE PEOPLE ARE PALESTINIAN FOR THIS REASON KING HUSSEIN HASN'T APPEARED TO MAKE THINGS EASY FOR MR ARAFAT LATELY ON SEVERAL OCCASIONS THE KING HAS REASSERTED THE HASHEMITES' CLAIM TO THE HOLY SITES IN JERUSALEM A SLAP AT MR ARAFAT'S PLAN OF MAKING JERUSALEM THE CAPITAL OF AN INDEPENDENT PALESTINE THIS WEEK KING HUSSEIN ALSO RULED OUT A PALESTINIANJORDANIAN CONFEDERATION ANY TIME SOON TAKING A CLEAR SWIPE AT WHAT HAS BECOME MR ARAFAT'S ACHILLES' HEEL HIS GROWING IMAGE AS AN AUTOCRAT THE DECISION TO CONFEDERATE CAN BE TAKEN IN THE FUTURE THE KING SAID TUESDAY AFTER THE PALESTINIAN PEOPLE REGAIN THEIR LAND IN AN ATMOSPHERE OF DEMOCRACY AND FREEDOM BUT WHAT MAY HAVE BEEN MOST UNCOMFORTABLE FOR MR ARAFAT SAY JORDANIANS AND PALESTINIANS ALIKE HAS BEEN THE KING'S REPEATED THREATS TO MAKE PALESTINIANS IN JORDAN CHOOSE BETWEEN LIVING IN PALESTINE AND JORDAN THESE COMMENTS HAVE STRUCK FEAR IN THE HUNDREDS OF THOUSANDS OF PALESTINIANS WHO HAVE SETTLED AND PROSPERED IN JORDAN AND CAUSED MANY TO RUE MR ARAFAT'S INDELICATE HANDLING OF PALESTINIANJORDANIAN RELATIONS EVERY TIME THE KING SAYS WE MUST CHOOSE OUR HOMELAND BUSINESS DRIES UP FOR A WEEK COMPLAINS ONE PALESTINIAN TRADER 9401060076 940106 TECHNOLOGY SPRINT OFFERS SERVICE ACTIVATED BY VOICE OF CALLINGCARD USERS NEW YORK SPRINT CORP BEGAN MARKETING A VOICEACTIVATED LONGDISTANCE CALLINGCARD SERVICE THAT LETS A CUSTOMER TELL A PHONE TO DIAL A NUMBER RATHER THAN HAVING TO PUSH BUTTONS SPRINT WHICH PIONEERED MANY OF THE LONGDISTANCE INDUSTRY'S NEW TECHNOLOGIES INCLUDING EFFICIENT FIBEROPTIC LINES SAID ITS NEW CARD SERVICE USES CENTRAL COMPUTERS PROGRAMMED WITH SOFTWARE THAT AUTOMATICALLY RECOGNIZES A CALLER'S VOICE THE SYSTEM DOES THIS BY STORING A UNIQUE VOICE PRINT OF THE CALLER A CUSTOMER REGISTERS FOR THE SERVICE BY SPEAKING HIS CALLINGCARD NUMBER AND PASSWORD INTO THE PHONE THREE TIMES THE SYSTEM STORES THE VOICE PRINT LATER WHEN A CALL IS PLACED THE SYSTEM MATCHES THE SPOKEN COMMAND AGAINST THE PRINT BEFORE LETTING THE CALL PASS AND BILLING FOR IT AS MANY AS 10 NUMBERS CAN BE STORED IN THE SPRINT SYSTEM AND CALLED BY DIALING A TOLLFREE NUMBER AND ASKING THE PHONE TO DIAL FOR EXAMPLE MOM OR THE BARBER THERE ARE TWO LEVELS OF SECURITY THE VOICE PRINT AND THE PASSWORD SAID DAVE SCHMIEG PRESIDENT OF SPRINT'S CONSUMER SERVICES GROUP AND YOU CAN USE THE SERVICE FROM ANY TOUCHTONE OR OLDER ROTARYDIAL PHONE SPRINT IS OFFERING THE SERVICE TO CUSTOMERS OF ITS PREMIUM CALLING PLAN FOR A 5 EXTRA MONTHLY FEE THE FEE IS WAIVED IF CALLERS MAKE MORE THAN 50 A MONTH IN LONGDISTANCE CALLS SPRINT SAID NEITHER AMERICAN TELEPHONE & TELEGRAPH CO NOR MCI COMMUNICATIONS CORP OFFER VOICEACTIVATED CARDS SPRINT SAID IT SOON WILL BEGIN A NATIONAL MARKETING CAMPAIGN FOR THE SERVICE 9401060075 940106 CREDIT RATINGS BURNHAM PACIFIC PROPERTIES INC THIS SAN DIEGOBASED REAL ESTATE INVESTMENT TRUST SAID STANDARD & POOR'S CORP RAISED ITS RATING FOR THE COMPANY'S 42 MILLION OF CONVERTIBLE DEBENTURES TO TRIPLEBMINUS FROM DOUBLEBPLUS S&P SAID THE BURNHAM HAD AN IMPROVED CAPITAL STRUCTURE AND A MORE FOCUSED ACQUISITION STRATEGY THE RATING SERVICE ALSO SAID IT ASSIGNED A PRELIMINARY DOUBLEBPLUS/TRIPLEBMINUS TO THE COMPANY'S RECENTLY FILED 200 MILLION MIXED SECURITIES SHELF REGISTRATION 9401060074 940106 WHO'S NEWS CABLE SECTOR'S NCTA NAMES ANSTROM HEAD ON PERMANENT BASIS WASHINGTON THE NATIONAL CABLE TELEVISION ASSOCIATION NAMED ACTING PRESIDENT DECKER ANSTROM TO HEAD THE TRADE GROUP ON A PERMANENT BASIS MR ANSTROM A FORMER NCTA EXECUTIVE VICE PRESIDENT SUCCEEDS JAMES P MOONEY WHO STEPPED DOWN IN JULY AFTER A NINEYEAR STINT THAT ENDED IN A BRUISING BATTLE WITH CONGRESS OVER PASSAGE OF THE 1992 CABLE ACT FOLLOWING A BANNER YEAR OF UNPRECEDENTED CHANGE IN THE CABLE INDUSTRY THE 43YEAROLD MR ANSTROM FACES A BEVY OF CHALLENGES FOR STARTERS CABLE COMPANIES ARE STILL TRYING TO COMPLY WITH NEW RATE RULES SET BY THE FEDERAL COMMUNICATIONS COMMISSION BUT SMALL AND LARGE OPERATORS HAVE DIFFERENT CONCERNS NEW TECHNOLOGIES SUCH AS POCKET TELEPHONES ARE OPENING UP UNTRIED MARKETS AND RECENT MERGERS WITH TELEPHONE COMPANIES HAVE PRODUCED A NEW PARADIGM OF COMPETITIONOFTEN AMONGST NCTA MEMBERS WITH SUCH DIVERSE CONCERNS FROM AN INCREASINGLY BROAD RANGE OF INTERESTS MR ANSTROM'S BIGGEST TASK MAY BE BUILDING A CONSENSUS FROM THE CACOPHONY OF VOICES THE JOB WILL BE TO FIND THE ISSUES WE CAN AGREE ON AND GET A CONSENSUS WHERE POSSIBLE SAID MR ANSTROM HE ADDED THAT HIS FIRST TASK WILL BE TO PURSUE A STRATEGIC REVIEW OF NCTA'S ROLE WHICH IN THE PAST HAS BEEN PRIMARILY TO STAVE OFF REGULATION WE'VE BEEN IN A POLITICAL WAR FOR FIVE YEARS HERE HE SAID ADDING WE HAVE TO MAKE PEACE WITH PUBLIC OFFICIALS MR ANSTROM SAID NCTA ALSO WILL PUSH TO PASS A COMPREHENSIVE TELECOMMUNICATIONS BILL IN CONGRESS IN 1994 CULTIVATE AN IMPROVED RELATIONSHIP WITH THE FCC AND EDUCATE MORE CONSUMERS ABOUT THE VALUE OF CABLE HE'S GOT CONSIDERABLE PEACEMAKER SKILLS THAT CAN BE BROUGHT TO BEAR SAYS MR MOONEY NOT JUST IN CONGRESS BUT ALSO IN THE INDUSTRY PRIOR TO JOINING THE NCTA IN 1987 MR ANSTROM WAS PRESIDENT OF POLITICAL STRATEGIES A WASHINGTON DC CONSULTING FIRM BEFORE THAT HE WORKED IN THE OFFICE OF BUDGET AND MANAGEMENT AND IN THE WHITE HOUSE OFFICE OF PRESIDENTIAL PERSONNEL 9401060073 940106 HONDA VW SEEK TO REGAIN US GLORY ACURA PLANS A LUXURY CAR BUILT HERE BY KRYSTAL MILLER AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT TWO FORMER DARLINGS OF AMERICAN CAR BUYERS HONDA'S ACURA DIVISION AND VOLKSWAGEN UNVEILED COMEBACK CONCEPTS IN PRESS BRIEFINGS AT THE AUTO SHOW HERE HONDA MOTOR CO SAID ITS ACURA LUXURY DIVISION WILL INTRODUCE A MODEL IN 1995 THAT WILL BE DESIGNED AND MANUFACTURED ENTIRELY BY THE COMPANY'S US OPERATIONS THE NEW CAR IS INTENDED TO FILL A GAP FOR ACURA ECLIPSED IN RECENT YEARS BY LEXUS AND INFINITI THE LUXURY BRANDS OF TOYOTA MOTOR CORP AND NISSAN MOTOR CORP RESPECTIVELY HONDA WILL BECOME THE FIRST JAPANESE AUTO MAKER TO BUILD A LUXURY CAR IN THE US THE MOVE CONTINUES HONDA'S STRATEGY OF INCREASING CAR PRODUCTION IN THE US AND CUTTING EXPORTS TO THE US PRICES OF EXPORTS HAVE BEEN MADE NONCOMPETITIVE BY THE STRENGTH OF THE JAPANESE YEN AGAINST THE DOLLAR ANALYSTS SAID OTHER JAPANESE AUTO MAKERS ARE LIKELY TO FOLLOW HONDA SAID THE NEW ACURA MODEL WHICH WILL COST UNDER 30000 WILL COMPETE WITH SUCH MODELS AS TOYOTA'S LEXUS ES300 IT WILL BE DESIGNED AT HONDA'S TORRANCE CALIF CENTER AND BUILT AT AN ASSEMBLY PLANT IN EAST LIBERTY OHIO THE NEW MODEL WILL GO ON SALE DURING THE AUTUMN OF 1995 HONDA SAID THE AUTO MAKER WILL BUILD BETWEEN 50000 AND 60000 OF THE VEHICLES ANNUALLY A SPOKESMAN SAID VOLKSWAGEN AG SAID IT IS LAUNCHING A PUSH TO MORE THAN DOUBLE ITS US SALES THIS YEAR ATTEMPTING TO REVERSE A 35 PLUNGE IN SALES FROM 1992 TO 1993 VW WHOSE UBIQUITIOUS BEETLE BECAME A CULTURAL ICON IN THE 1960S IS THE ONLY REMAINING HIGHVOLUME EUROPEAN AUTO MAKER STILL TRYING TO COMPETE IN THE CUTTHROAT AMERICAN MARKET VW'S SALES LAST YEAR PLUNGED TO JUST 49000 VEHICLES FROM 75000 IN 1992 THE 1993 SALES DEBACLE WAS IN PART THE RESULT OF QUALITY AND PRODUCTION GLITCHES AT VW'S MEXICAN ASSEMBLY PLANT WHICH HOBBLED THE LAUNCH OF THE AUTO MAKER'S GOLF AND JETTA COMPACTS NONETHELESS ULRICH SEIFFERT THE COMPANY'S HEAD OF WORLDWIDE RESEARCH VOWED THAT THE NO 1 EUROPEAN AUTO MAKER WON'T BE FORCED OUT OF THE MARKET AS RENAULT FIAT SPA AND PSA PEUGEOT CITROEN WERE IN RECENT YEARS WE ARE FIGHTERS WE WILL STAY IN THIS MARKET WE WILL NOT GIVE UP SAID DR SEIFFERT WHOSE DECLARATION APPEARS TO ILLUSTRATE HOW PRECARIOUS VW'S POSITION HERE HAS BECOME DR SEIFFERT SAID VW WANTS TO RECLAIM ITS IMAGE FOR SELLING HONEST RELIABLE AFFORDABLE CARS EVENTUALLY HE SAID VOLKSWAGEN SEEKS TO INCREASE ANNUAL US SALES TO ABOUT 250000 VEHICLES DURING ITS PEAK YEARS THE COMPANY WAS SELLING A HALFMILLION CARS A YEAR IN THIS MARKET SEPARATELY MAZDA MOTOR CORP SAID ITS NEW MILLENIA LUXURY CAR WILL BE PRICED BETWEEN 25995 AND 31400 ALL MILLENIA MODELS COME EQUIPPED WITH DUAL AIRBAGS ANTILOCK BRAKES AUTOMATIC TRANSMISSION AND A V6 ENGINE THE CAR WILL BE POSITIONED BETWEEN MAZDA'S 626 MODEL AND ITS FLAGSHIP 929 MODEL MAZDA EXPECTS TO SELL 24000 MILLENIAS ANNUALLY THE CAR WILL GO ON SALE IN EARLY SPRING 9401060072 940106 LEISURE & ARTS BOOKSHELF WHO LET WHOM ARM IRAQ BY WILLIAM M CARLEY NORTH KOREA MAY HAVE THE BOMB SOME LATIN AMERICAN NATIONS HAVE BEEN BUYING SUBMARINES AND MIDDLE EASTERN COUNTRIES ARE AS USUAL BUSILY ARMING TO THE TEETH WITH THIS BACKDROP IT'S USEFUL TO HAVE A BOOK WHICH SHOWS HOW ONE NATION HAS EXPLOITED A COUPLE OF THE WORLD'S BIGGEST SHOPPING MALLS FOR WEAPONS TECHNOLOGY THE NATION IN QUESTION IS IRAQ AND THE BOOK ABOUT IRAQ'S MILITARY SHOPPING SPREE DURING THE 1980S IS SPIDER'S WEB THE SECRET HISTORY OF HOW THE WHITE HOUSE LEGALLY ARMED IRAQ BANTAM 455 PAGES 2395 BY ALAN FRIEDMAN UNTIL RECENTLY WITH THE FINANCIAL TIMES I AM ALWAYS SUSPICIOUS OF A BOOK FINANCED IN PART BY ANONYMOUS DONORS AND ONE THAT CONTAINS ITS SHARE OF ANONYMOUS SOURCES AS WELL BUT WHILE ONESIDED AND AT TIMES MURKY MR FRIEDMAN DELIVERS SOME USEFUL INSIGHTS INTO THE FINANCIAL UNDERPINNINGS OF GLOBAL POLITICS FROM THE BEGINNING IT IS CLEAR THAT MR FRIEDMAN SEES ANYONE WHO HELPED ISRAEL'S ARCHENEMY IRAQ AS A FOOL OR A KNAVE SOMETIMES BOTH AS IN THE CASE OF FORMER PRESIDENT BUSH AND HIS SECRETARY OF STATE JAMES BAKER AS WELL AS FORMER PRIME MINISTER MARGARET THATCHER AFTER THE IRANIRAQ WAR THE BUSHBAKER TEAM DECIDED TO FOSTER TRADE WITH IRAQ THE US WAS THEN ABLE TO PURCHASE IRAQI OIL AND SELL THEM GOODS TO REBUILD THEIR SHATTERED ECONOMY AND THE TRADE IT WAS HOPED JUST MIGHT MODERATE SADDAM'S BEHAVIOR BRITAIN TOOK MUCH THE SAME TACK AS THE US IT TURNED OUT THAT SOME OF THE GOODS SOLD TO IRAQ SUCH AS SOPHISTICATED MACHINE TOOLS COULD ALSO BE USED FOR A NUCLEAR BOMB PROGRAM SPIDER'S WEB WRITTEN IN A HECTORING ACCUSATORIAL TONE SUGGESTS THAT MESSRS BUSH AND BAKER AND MRS THATCHER DELIBERATELY CIRCUMVENTED US AND UK EXPORT CONTROLS IN ORDER TO ARM SADDAM BUT IT NEVER PROVES THIS POINT WHEN THE US POLICY OF TRADING WITH IRAQ WAS HATCHED IN OCTOBER 1989 NO ONE DREAMED THAT SADDAM WOULD ATTACK KUWAIT NEARLY A YEAR LATER CAREFULLY READ HOWEVER THE BOOK SHOWS HOW EVEN THE BEST INTENTIONED OF FOREIGN POLICIES CAN GO WRONG TUCKED INTO THE BOOK'S APPENDIX ARE DOZENS OF PREVIOUSLY SECRET US AND BRITISH GOVERNMENT DOCUMENTS THAT SHOW SOME OF THE DIFFICULTIES GOVERNMENTS GO THROUGH IN TRYING TO ADMINISTER THEIR POLICIES ONE GOOD EXAMPLE INVOLVES MATRIX CHURCHILL A COVENTRYBASED BRITISH FIRM SECRETLY OWNED BY IRAQI INTERESTS IN 1989 THE COMPANY HAD APPLIED FOR BRITISH GOVERNMENT PERMISSION TO EXPORT LATHES TO IRAQ THIS PRESENTED A PROBLEM AS A BRITISH GOVERNMENT INTERNAL MEMO POINTED OUTTHERE IS GOOD REASON TO BE SKEPTICAL ABOUT ALLOWING ANY EXPORT WHICH MIGHT HELP IN THE ACHIEVEMENT OF IRAQ'S NUCLEAR OBJECTIVES THE MEMO STATED HOWEVER OFFICIALS FROM INTERESTED DEPARTMENTS HAVE AGREED THAT THERE IS NO REASON TO BELIEVE THAT MATRIX CHURCHILL LATHE EQUIPMENT IS OF SPECIFIC INTEREST TO THE IRAQI NUCLEAR PROGRAMME WE KNOW OF COURSE THAT MACHINE TOOLS CAPABLE OF CONTOURING IN TWO AXES ARE ESSENTIAL FOR THE PRODUCTION OF NUCLEAR WEAPONS BUT THEY ALSO HAVE MANY OTHER LEGITIMATE INDUSTRIAL USES THE MEMO WENT ON TO POINT OUT THAT THERE WERE NO INTERNATIONAL AGREEMENTS PREVENTING EXPORTS OF SUCH DUALUSE EQUIPMENT SO IF BRITAIN DIDN'T SELL THE LATHES TO IRAQ SOME OTHER COUNTRY WOULD IN MATRIX CHURCHILL'S CASE THERE WAS ANOTHER CONSIDERATION UNKNOWN TO THE IRAQIS SOME OF THE COMPANY'S BRITISH EXECUTIVES WERE ACTING AS SPIES FOR BRITISH INTELLIGENCE THUS PROVIDING BRITAIN WITH AN INVALUABLE WINDOW INTO THE IRAQI PROCUREMENT NETWORK DENYING THE EXPORT MIGHT HAVE CLOSED IT THE POLICY AS WE ALL KNOW NOW BACKFIRED WHEN UNITED NATIONS INSPECTORS CHECKED UP ON SADDAM'S FACTORIES AFTER THE WAR THEY FOUND A NUCLEAR BOMB PROJECT FAR MORE ADVANCED THAN ANYONE OUTSIDE IRAQ HAD IMAGINED THE UN INSPECTORS ALSO FOUND MATRIX CHURCHILL MACHINES IN ONE OF THE NUCLEAR PROJECT PLANTS IT WAS WITHOUT DOUBT THE BEST INDUSTRIALTOOLING FACILITY WE HAD SEEN DAVID KAY FORMER NUCLEAR INSPECTOR FOR THE UN SAYS IN THE BOOK MR KAY ADDS WE JOKED ABOUT ONE MEMBER OF THE INSPECTION TEAM FROM BRITISH INTELLIGENCE WE KNEW WHY HE HAD SUCH GOOD INFORMATION ON THE NUMBER OF MATRIX CHURCHILL MACHINES THAT WOULD BE THERE ASTONISHINGLY THE SAME BRITISH GOVERNMENT THEN PROSECUTED IN 1992 SOME MATRIX CHURCHILL OFFICIALS FOR VIOLATING EXPORT LAWS A PROSECUTION THAT WAS DROPPED IN MIDTRIAL THE BOOK ALSO HAS CHAPTERS ON THE ATLANTA BRANCH OF BANCA NAZIONALE DEL LAVORO AND HOW IT FINANCED ARMS EXPORTS TO IRAQ FROM THE US AND PROVIDED LETTERS OF CREDIT FOR SOME OF MATRIX CHURCHILL'S EXPORTS FROM BRITAIN AND MR FRIEDMAN WITH CONVINCING DETAIL SHOWS HOW MR BAKER LOBBIED A US GOVERNMENT AGENCY TO GUARANTEE SOME OF BNL'S LOANS TO IRAQ THE JUSTICE DEPARTMENT'S INVESTIGATION EVENTUALLY LED TO THE INDICTMENT OF SEVERAL ATLANTA BRANCH OFFICIALS BUT THE BOOK FAILS TO ANSWER ONE OF THE MOST TANTALIZING QUESTIONS OF ALL IF THE BRITISH GOVERNMENT WAS USING MATRIX CHURCHILL FOR INTELLIGENCE PURPOSES AS IT SURELY WAS WHY ON EARTH DID THE CROWN EVER PROSECUTE COMPANY OFFICIALS WHO HAD BEEN COOPERATING WITH THAT INTELLIGENCE OPERATION MR CARLEY IS AN INVESTIGATIVE REPORTER FOR THE JOURNAL 9401060071 940106 ECONOMY AMA CONTRIBUTIONS SEEM TO CONTRADICT ITS STANCE ON 3 ISSUES POLITICALCAMPAIGN DONATIONS TO MEMBERS OF CONGRESS ARE ANALYZED IN ARTICLE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL SOME OF THE LARGEST POLITICALCAMPAIGN CONTRIBUTIONS BY THE AMERICAN MEDICAL ASSOCIATION HAVE GONE TO CONSERVATIVE MEMBERS OF CONGRESS WHO OPPOSED THE AMA ON THREE PUBLICHEALTH ISSUES THAT'S THE CONCLUSION OF A NEW STUDY ANALYZING CONGRESSIONAL VOTING RECORDS AND AMA CAMPAIGN FINANCING FROM 1989 TO 1992 OVER THAT PERIOD THE AMA'S POLITICAL ARM THE AMERICAN MEDICAL POLITICAL ACTION COMMITTEE CONTRIBUTED 53 MILLION TO CANDIDATES FOR CONGRESS THAT RANKED IT AMONG THE TOP HEALTHCARE LOBBYING GROUPS THE STUDY PUTS THE AMA'S LOBBYING PRIORITIES UNDER THE SPOTLIGHT AT AN AWKWARD TIME FOR THE 290000MEMBER PHYSICIANS' ORGANIZATION THE AMA LATELY HAS BEEN URGING CONGRESS TO TAKE A MORE GRADUAL APPROACH TO HEALTHCARE REFORM THAN CALLED FOR BY SOME PROPOSALS AT THE SAME TIME THE AMA IS CONTINUING LONGTIME CAMPAIGNS ON HEALTH ISSUES SUCH AS SMOKING THE AUTHORS OF THE STUDY HARVARD MEDICAL SCHOOL STUDENT JOSHUA SHARFSTEIN AND HIS FATHER BALTIMORE PSYCHIATRIST STEVEN SHARFSTEIN CONTEND THAT AMA LOBBYISTS MAY BE LETTING ECONOMIC INTERESTS SUPERSEDE QUESTIONS OF PUBLIC HEALTH THEIR REPORT IS PUBLISHED IN THE LATEST ISSUE OF THE NEW ENGLAND JOURNAL OF MEDICINE AMA OFFICIALS DISPUTED THE SHARFSTEINS' INTERPRETATION A SUBJECT OF THIS COMPLEXITY DOESN'T EASILY LEND ITSELF TO A RELATIVELY SIMPLISTIC APPRAISAL SAID JAMES TODD THE AMA'S EXECUTIVE VICE PRESIDENT HE SAID THE SHARFSTEINS' STUDY LOOKED AT MUCH TOO NARROW A RANGE OF HEALTH ISSUES TO BE REPRESENTATIVE OF THE AMA'S OVERALL LOBBYING THE SHARFSTEINS' STUDY FOCUSES ON CONGRESSIONAL VOTING ON THREE ISSUES PROMOTING TOBACCO EXPORTS REQUIRING A WAITING PERIOD FOR HANDGUN PURCHASES AND RESTRICTING WHAT PHYSICIANS IN FEDERALLY FUNDED CLINICS CAN TELL PATIENTS ABOUT ABORTIONS THE AMA REPEATEDLY HAS SPOKEN OUT ON ALL THREE ISSUES OPPOSING TOBACCOEXPORT AID FAVORING FIREARMS WAITING PERIODS AND OPPOSING LIMITS ON DOCTORS' RIGHTS TO COUNSEL PATIENTS DESPITE THE AMA'S PUBLIC STANDS THE SHARFSTEINS FOUND THAT MEMBERS OF CONGRESS WHO TOOK THE OPPOSITE POSITIONS GOT BIGGER CAMPAIGN CONTRIBUTIONS FROM THE AMA'S POLITICAL ARM REPRESENTATIVES WHO VOTED WITH THE AMA ON THE TOBACCO BILL FOR EXAMPLE GOT AN AVERAGE OF 9842 MEMBERS WHO VOTED AGAINST THE AMA POSITION GOT AN AVERAGE OF 11549 SUCH VARIATIONS IN CONTRIBUTIONS BELIE THE AMA POSITIONS ON SOME IMPORTANT PUBLIC HEALTH ISSUES THE SHARFSTEINS WROTE MEANWHILE THE AMA'S POLITICAL ARM CONTRIBUTED SIGNIFICANTLY MORE TO REPRESENTATIVES WITH HIGHER VOTE RATINGS FROM THE AMERICAN CONSERVATIVE UNION THE STUDY FOUND PERHAPS THE MORE CONSERVATIVE REPRESENTATIVES SUPPORTED THE AMA POSITIONS ON ECONOMIC ISSUES IMPORTANT TO PHYSICIANS THE SHARFSTEINS WROTE JOSHUA SHARFSTEIN SAID THE ARTICLE ORGINALLY WAS SUBMITTED TO THE AMA'S OWN LEAD PUBLICATION THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION BUT WAS REJECTED MR SHARFSTEIN SAID HE WASN'T ENTIRELY SURE WHY THE AMA JOURNAL CHOSE NOT TO TAKE THE ARTICLE THE NEW ENGLAND JOURNAL OF MEDICINE IS PUBLISHED BY THE MASSACHUSETTS MEDICAL SOCIETY WHICH IS A MEMBER OF THE AMA BUT THE MASSACHUSETTS SOCIETY HAS LONG GIVEN THE EDITOR OF THE NEW ENGLAND JOURNAL CONSIDERABLE INDEPENDENCE AND THE JOURNAL HAS FREQUENTLY PUBLISHED ARTICLES AND EDITORIALS THAT ARE AT VARIANCE WITH AMA POLICIES AND STANCES 9401060070 940106 ECONOMY CLINTON SET TO CUT CHINA TEXTILE QUOTAS LIFT BAN ON SALE OF SATELLITES TO BEIJING BY BOB DAVIS AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS SET TO SLASH CHINA'S TEXTILE QUOTAS BY AS MUCH AS ONETHIRD WHILE ALSO LIFTING A BAN ON THE SALE OF TWO COMMUNICATIONS SATELLITES TO BEIJING OFFICIALS SAID THEY WANT BEIJING TO GREATLY REDUCE THE ILLICIT EXPORT OF GARMENTS THROUGH OTHER COUNTRIES IN AN EFFORT TO EVADE US QUOTA LIMITS THE US CUSTOMS SERVICE ESTIMATES THAT THOSE ILLEGAL EXPORTS AMOUNT TO 2 BILLION ON TOP OF ITS LEGAL QUOTAS WHICH TOTALED ABOUT 45 BILLION LAST YEAR THE ADMINISTRATION IS TO LIFT A BAN ON THE SALE OF TWO SATELLITES BUILT BY MARTIN MARIETTA CORP IN EXCHANGE FOR BEIJING'S AGREEMENT TO BEGIN REGULAR DISCUSSIONS WITH THE US ON WEAPONSPROLIFERATION ISSUES US OFFICIALS SAID BOTH ANNOUNCEMENTS COULD COME AS EARLY AS TODAY THE TWIN MOVES WHICH OFFICIALS SAID AREN'T LINKED COME AS THE ADMINISTRATION IS TRYING TO SORT OUT ITS POLICY TOWARD CHINA CLINTON TRADE OFFICIALS WANT TO SEND A BROAD MESSAGE TO CHINA THAT THE US IS READY TO CRACK DOWN IF CHINA FAILS TO MEET US EXPECTATIONS BUT THAT IT'S ALSO READY TO REWARD CHINA IF IT MAKES DEMONSTRABLE PROGRESS THIS GOODCOP BADCOP STYLE OF TRADE POLICY MARKED THE ADMINISTRATION'S EARLY TRADE RELATIONS WITH EUROPE AND OFTEN LEFT THE EUROPEANS MORE CONFUSED THAN CONVINCED WITH CHINA THE ADMINISTRATION ALSO HAS BEEN SCURRYING TO FIND WAYS TO DEMONSTRATE TO CHINA AND TO CONGRESS THAT IT IS SERIOUS IN DEMANDING IMPROVEMENTS IN HUMAN RIGHTS PRESIDENT CLINTON MUST DECIDE BY JUNE 4 WHETHER CHINA HAS MADE SUFFICIENT IMPROVEMENTS TO JUSTIFY CONTINUING TO ASSESS THE LOWEST POSSIBLE TARIFF RATES ON CHINESE EXPORTS SECRETARY OF STATE WARREN CHRISTOPHER MIGHT MEET CHINA'S FOREIGN MINISTER IN EUROPE THIS MONTH FOR DISCUSSIONS OF THE BILATERAL RELATIONSHIP BOWMAN CUTTER A SENIOR ECONOMIC ADVISER TO PRESIDENT CLINTON TOLD FOREIGN JOURNALISTS LAST MONTH THAT CHINA WOULD BE THE FOCAL POINT OF THE ADMINISTRATION'S TRADE POLICY THIS YEAR IT IS IN THE BALANCE WHETHER OR NOT CHINA WILL BE A MERCANTILIST ECONOMY OR AN OPEN ECONOMY HE SAID THE CHINA QUESTION HAS BEEN THE SUBJECT OF INTERAGENCY MEETINGS THIS WEEK WHICH GAINED URGENCY WHEN CHINA REFUSED TO CONTINUE TEXTILE NEGOTIATIONS IN WASHINGTON WITHIN THE ADMINISTRATION OFFICIALS AT THE STATE DEPARTMENT AND ELSEWHERE WORRY THAT CUTTING CHINA'S QUOTA COULD LEAD TO CHINESE RETALIATION AGAINST US MANUFACTURERS OF AIRCRAFT AND TELECOMMUNICATIONS EQUIPMENT BUT IN THE END THE ADMINISTRATION DECIDED IT WAS MORE IMPORTANT TO FOLLOW THROUGH ON PREVIOUS THREATS THAT IF CHINA DIDN'T REACH AN AGREEMENT THE QUOTAS WOULD BE CUT THE US WANTS CHINA TO SIGN A TEXTILE AGREEMENT THAT WOULD ALLOW THE US TO DEDUCT FROM CHINA'S QUOTA THREE TIMES THE VOLUME OF GOODS SHIPPED IMPROPERLY THROUGH OTHER COUNTRIES OVER THE PAST SIX MONTHS SOUTH KOREA JAMAICA THE CZECH REPUBLIC AND A DOZEN SMALL COUNTRIES HAVE SIGNED SUCH AGREEMENTS IF CHINA AGREES QUOTA REDUCTIONS WOULD BE RESCINDED FOR THEIR PART CHINESE OFFICIALS SAID THEY ARE DOING THEIR BEST TO COMBAT ILLICIT SHIPMENTS AND COMPLAIN THEY ARE BEING UNFAIRLY TARGETED BY WASHINGTON TEXTILE AGREEMENTS ALSO HAVE LAPSED WITH INDIA PAKISTAN AND THAILAND BUT THE US IS LIMITING ITS RESPONSE SO FAR TO CHINA BK ZUTSHI INDIA'S DELEGATE TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE SAID INDIA WANTS TO WRAP UP TEXTILE NEGOTIATIONS WITH THE US BY FEBRUARY IN CHOOSING QUOTA REDUCTIONS THE US SIDESTEPPED POSSIBLE HARSHER ACTIONS SUCH AS PLACING PROHIBITIVELY HIGH TARIFFS ON ALL CHINESE TEXTILE EXPORTS THAT WOULD HAVE IMMEDIATELY CUT INTO CHINA'S TRADE QUOTA REDUCTIONS MAY PROMPT US IMPORTERS TO LOOK ELSEWHERE FOR TEXTILE SUPPLIERS BUT IN THE MAIN THE REDUCTIONS SHOULDN'T HARM CHINA MUCH UNTIL LATE SUMMER US TRADE OFFICIALS CALCULATE WHEN SHIPMENTS FOR THE CHRISTMAS SEASON PICK UP BY THAT TIME THE ADMINISTRATION HOPES BEIJING WILL HAVE AGREED TO THE CHANGES THE US IS SEEKING CONCERNING THE SATELLITE DEAL THE WHITE HOUSE HAS BEEN UNDER PRESSURE FROM US BUSINESSES TO LIFT THE SANCTIONS SINCE THEY WERE IMPOSED ON BEIJING LAST SUMMER FOR THE SALE OF M11 MISSILE TECHNOLOGY TO PAKISTAN A US OFFICIAL SAID THAT UNDER THE AGREEMENT TO HOLD NEGOTIATIONS ON PROLIFERATION QUESTIONS LICENSES WOULD BE APPROVED FOR THE SALE OF ECHOSTAR A 150 MILLION DIRECT BROADCAST SATELLITE AND ASIASAT II VALUED AT 55 MILLION LATER ON THE OFFICIAL SAID A LICENSE FOR A THIRD SATELLITE DEAL MIGHT BE APPROVED INVOLVING GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT THE COMPANY HAS CONTRACTS WITH CHINA TO LAUNCH TWO COMMUNICATIONS SATELLITES ONE IS A JOINT VENTURE WITH CHINA THE OTHER SATELLITE IS OWNED BY AN AUSTRALIAN COMPANY THE SATELLITES VALUED AT ABOUT 180 MILLION WOULD BE LAUNCHED BY THE CHINA GREAT WALL INDUSTRIAL CORP HUGHES ARGUES THAT THE BAN ON SATELLITE SALES COULD COST IT AS MUCH AS 1 BILLION IN FUTURE BUSINESS THE SANCTIONS WERE ORIGINALLY ASSESSED BECAUSE THE US SAID THE CHINESE MISSILE TECHNOLOGY SALE VIOLATED GUIDELINES SET BY THE MISSILE TECHNOLOGY CONTROL REGIME BEIJING HAD PROMISED THE BUSH ADMINISTRATION IN 1992 THAT IT WOULD ABIDE BY THE ACCORD IN WHICH SUPPLIER NATIONS AGREE TO PROHIBIT THE SALE OF CERTAIN TECHNOLOGIES TO OTHER COUNTRIES 9401060069 940106 LEISURE & ARTS A FEMINIST THEORY OF GREECE'S PARTHENON FRIEZE BY STEVE COATES NEW YORK A NEW YORK UNIVERSITY PROFESSOR HAS STARTLED AND DELIGHTED THE WORLD OF CLASSICAL ARCHAEOLOGY WITH A RADICAL REINTERPRETATION OF THE PARTHENON FRIEZE THIS ICON OF WESTERN CULTURE NOW IN THE COLLECTION OF THE BRITISH MUSEUM IN LONDON IS ONE OF THE MOST IMPORTANT AND ENIGMATIC SCULPTURES TO SURVIVE FROM ANCIENT GREECE IN HER NEW THEORY JOAN BRETON CONNELLY MOUNTS THE MOST SERIOUS CHALLENGE TO THE TRADITIONAL CONCEPTION OF THE FRIEZE IN OVER 200 YEARS SHE RAISES QUESTIONS ABOUT ATHENS'S ESTABLISHED REPUTATION AS A MISOGYNISTIC SOCIETY BY ARGUING THAT THE FRIEZE DEPICTS A MYTH IN WHICH WOMEN ARE VENERATED AS SOCIAL LEADERS AND MARTYRS MS CONNELLY ARGUES THAT THE FRIEZE AND IN SOME WAYS THE PARTHENON AS A WHOLE CELEBRATES THREE LEGENDARY PRINCESSES WHO AGREE TO DIE IN ORDER TO SAVE ATHENS AND A QUEEN WHO WILLINGLY GIVES UP HER FAMILY SO THE CITY MIGHT SURVIVE IF SHE IS EVEN PARTLY RIGHT IT IS A REVOLUTION FOR THE INTERPRETATION OF THE FRIEZE SAYS WERNER FUCHS AN AUTHORITY ON GREEK SCULPTURE WHO HAS WORKED AT THE UNIVERSITIES OF TUBINGEN AND MUNSTER IN GERMANY AND NOW LIVES IN OXFORD ENGLAND THE 528FOOT FRIEZE ONCE RAN COMPLETELY AROUND THE OUTSIDE WALL OF THE PARTHENON THE TEMPLE OF ATHENA THAT STILL STANDS ON THE ACROPOLIS HILL OVERLOOKING ATHENS A MONUMENTAL BAND OF CARVED HUMAN AND ANIMAL FIGURES IT RUNS UNDER THE ROOF OF THE MARBLE BUILDING'S OUTER COLONNADE IT CLEARLY REPRESENTS A RELIGIOUS PROCESSION OF SOME KIND WITH FIGURES LEADING ANIMALS TO BE SLAUGHTERED SACRIFICIAL ATTENDANTS AND MUSICIANS FOLLOWED BY CHARIOTS AND A CAVALCADE OF NEARLY 200 HORSEMEN THE PROCESSION CONVERGES ON A GROUP OF FIVE FIGURES THAT ONCE OCCUPIED A PROMINENT POSITION ABOVE THE MAIN DOOR OF THE TEMPLE A MAN DRESSED AS A PRIEST AND A YOUNG CHILD HANDLING A LARGE PIECE OF FABRIC FOLDED LIKE A SHEET A STATELY ADULT WOMAN BESIDE THEM AND TWO YOUNGER WOMEN CARRYING OBJECTS OF SOME SORT ON THEIR HEADS GODS ARE IN ATTENDANCE BUT TURN THEIR BACKS ON THE CENTRAL SCENE TAKING A CUE FROM THE FOLDED CLOTH JAMES STUART AND NICHOLAS REVETT ENGLISHMEN TRAVELING IN GREECE OVER TWO CENTURIES AGO SUGGESTED THAT THE FRIEZE MIGHT REPRESENT THE PANATHENAIC PROCESSION PART OF THE ATHENIANS' ANNUAL BIRTHDAY CELEBRATION FOR THEIR PATRON GODDESS ATHENA THE FABRIC THEY REASONED WAS THE PEPLOS A DRESS WHICH THE CITIZENS WOVE ANEW EACH YEAR AND PRESENTED TO THE GODDESS IN THE GREAT PROCESSION THE FIVE CENTRAL FIGURES WERE ALL TO BE CONNECTED IN SOME WAY WITH THE CLIMAX OF THE RITUAL STUART AND REVETT PUBLISHED THEIR HYPOTHESIS IN 1787 AND DESPITE SOME ADMITTED DIFFICULTIES IT HAS REMAINED THE BASIS FOR SERIOUS INTERPRETATIONS OF THE PARTHENON FRIEZE EVER SINCE BUT IF THE TWO AMATEUR SCHOLARS WERE CORRECT THEN THE FRIEZE IS UNIQUE AMONG KNOWN TEMPLE DECORATIONS FROM ANCIENT GREECE IN SHOWING A SCENE FROM CONTEMPORARY LIFE ON GREEK TEMPLES MYTHOLOGICAL SCENES ARE THE NORM IN HER NEW THEORY MS CONNELLY NEATLY SOLVES THIS PROBLEM BY CONNECTING THE FRIEZE WITH A MYTH SHE BELIEVES IS THE BASIS FOR THE SCENE IT DEPICTS SHE FOUND CLUES FOR HER INTERPRETATION IN A THIRDCENTURY BC PAPYRUS USED TO WRAP A MUMMY NOW IN THE LOUVRE FIRST PUBLISHED IN 1967 THE PAPYRUS PRESERVES ABOUT 150 PREVIOUSLY UNKNOWN LINES OF THE ERECHTHEUS A LOST TRAGEDY OF EURIPIDES DATED TO ABOUT 423 BC AROUND THE TIME THAT THE PARTHENON FRIEZE WAS CREATED WHILE THE STORY WAS FAMILIAR FROM OTHER SOURCES EVEN BEFORE THE DISCOVERY OF THE FRAGMENT THE NEW LINES BY EURIPIDES CONTAINED NUMEROUS REFERENCES TO GREEK CULT THAT MS CONNELLY SAYS ALLOWED HER TO CONNECT THE MYTH WITH THE FRIEZE IN THE PLAY ERECHTHEUS THE KING OF ATHENS FACES AN INVASION BY A THRACIAN ARMY HE SEEKS ADVICE AT DELPHI AND FOR ONCE THE ORACLE ANSWERS UNEQUIVOCALLY IN ORDER TO DEFEAT THE INVADERS ERECHTHEUS MUST SACRIFICE ONE OF HIS THREE DAUGHTERS BUT THE GIRLS HAD MADE A VOW THAT THE DEATH OF ONE WOULD MEAN THE DEATH OF THEM ALL HEARING THE GRIM NEWS PRAXITHEA THE QUEEN DELIVERS A STIRRING AND PATRIOTIC SPEECH THE RUIN OF ONE PERSON'S HOUSE IS OF LESS CONSEQUENCE AND BRINGS LESS GRIEF THAN THAT OF THE WHOLE CITY IF THERE WERE A HARVEST OF SONS IN OUR HOUSE RATHER THAN DAUGHTERS AND A HOSTILE FLAME CAME TO THE CITY WOULD I NOT HAVE SENT MY SONS INTO BATTLE FEARING FOR THEIR DEATH I HATE WOMEN WHO IN PREFERENCE FOR THE COMMON GOOD CHOOSE FOR THEIR OWN CHILDREN TO LIVE THE GIRLS AGREE TO BE SLAUGHTERED AND THE THRACIANS ARE DEFEATED THOUGH ERECHTHEUS FALLS IN THE FIGHTING ACCORDING TO THE CONNELLY THEORY THE FIVE FIGURES ABOVE THE DOOR OF THE PARTHENON REPRESENT THE ROYAL COUPLE PREPARING TO SACRIFICE THEIR DAUGHTERS BEFORE THE BATTLE THE FOLDED CLOTH IS THE DEATH SHROUD OF THE YOUNGEST DAUGHTER THE FIRST TO BE SACRIFICED THE ADULT FEMALE PRAXITHEA ATTENDS HER OTHER DAUGHTERS WHO WAIT THEIR TURN CARRYING THEIR OWN SHROUDS AS BUNDLES ON THEIR HEADS ALL MY LIFE I HAVE BEEN PUZZLED ABOUT WHY THE GODS ARE TURNED AROUND FROM THE CENTRAL SCENE SAYS MR FUCHS NOW FOR THE FIRST TIME THERE IS A POSSIBILITY TO KNOW WHY IN GREEK MYTHOLOGY HE SAYS GODS SOMETIMES TURN AWAY FROM THE DEATH THROES OF MORTALS TO AVOID POLLUTING THEIR DIVINE NATURA THERE ARE MANY SHADES OF OPINION ABOUT MS CONNELLY'S AS YET UNPUBLISHED THEORY BUT IT IS THE TALK OF ARCHAEOLOGICAL CIRCLES HER LECTURES ON THE SUBJECT HAVE BEEN GREETED ENTHUSIASTICALLY BY UNIVERSITY AUDIENCES ON BOTH SIDES OF THE ATLANTIC I'M INCLINED TO BELIEVE IT MYSELF SAYS MARTIN ROBERTSON THE FORMER LINCOLN PROFESSOR OF CLASSICAL ARCHAEOLOGY AT OXFORD UNIVERSITY BUT IT'S A BIT PREMATURE TO SAY WHAT THE FINAL REACTION WILL BE THERE HAS BEEN A STRONG RESPONSE SAYS BRUNILDE RIDGWAY RHYS CARPENTER PROFESSOR OF ARCHAEOLOGY AT BRYN MAWR COLLEGE NOT MANY PEOPLE BELIEVE IT SHE MAINTAINS BUT THEY LIKE IT VERY MUCH THE NEW POINT OF VIEW IS VERY STIMULATING CERTAINLY ONE REASON THE VIEW IS SO STIMULATING IS THE PROMINENCE THAT THE MYTH OF ERECHTHEUS'S DAUGHTERS ACCORDS THE HEROIC CAPACITY OF WOMEN EVEN THOUGH VIRGIN SACRIFICE MAY SEEM A PARADOXICAL WAY TO INTRODUCE THAT THEME AS MS CONNELLY PUTS IT IF THE CENTRAL MONUMENT OF WESTERN CULTURE CAN BE SEEN IN PART AS A MONUMENT TO THE HEROISM OF THE THREE MAIDENS WHO AS WILLING VICTIMS AND WITH THE ENCOURAGEMENT OF THEIR MOTHER GAVE THEIR LIVES TO SAVE THE POLIS SO MUCH FOR MISOGYNY IN GREEK MYTH AND WELCOME TO AN EXPANDED VIEW OF WOMEN AS HEROES IN GREEK MYTH AND CULT AS TRULY CELEBRATED IN THE PARTHENON THE GREAT TEMPLE SHE SAYS MIGHT HAVE BEEN THOUGHT TO LIE ABOVE THE TOMB OF THE THREE SLAIN MAIDENS THAT MONUMENTAL TRIBUTE WOULD STAND IN SHARP CONTRAST WITH THE DISMISSIVE ATTITUDE TOWARD WOMEN EXPRESSED BY THE FIFTH CENTURY BC ATHENIAN STATESMAN PERICLES IN A NOTORIOUS AND MUCHQUOTED LINE FROM HIS FUNERAL ORATION THE GLORY OF A WOMAN IS NOT TO FALL BENEATH A WOMAN'S NATURE AND NOT TO BE TALKED OF AMONG MEN WHETHER IN PRAISE OR IN CRITICISM SO FAR EVELYN HARRISON OF NEW YORK UNIVERSITY'S INSTITUTE OF FINE ARTS SEEMS TO BE THE MOST VIGOROUS CRITIC OF PROF CONNELLY'S PROPOSITION SHE DEFENDED A CONSERVATIVE READING OF THE FRIEZE IN A RECENT TALK AT PRINCETON UNIVERSITY I WASN'T ABLE TO BELIEVE ANY OF THIS FROM THE BEGINNING SAYS PROF HARRISON WHO AMONG OTHER OBJECTIONS BELIEVES THAT ERECHTHEUS IS REPRESENTED IN ANOTHER PART OF THE FRIEZE AND THAT THE CHILD IN THE CENTRAL SCENE IS ACTUALLY A BOY SEVERAL SCHOLARS NOTE THAT THERE IS OFTEN A RELUCTANCE TO TAKE STRONG SIDES ON A CONTROVERSIAL IDEA BEFORE IT IS ACTUALLY PUBLISHED ONE HAS TO WAIT UNTIL SHE GETS IT DOWN IN WRITING SAYS OXFORD'S CURRENT LINCOLN PROFESSOR SIR JOHN BOARDMAN WHO ADDS I'M SURE SHE ISN'T RIGHT BUT WHAT SHE SAYS HAS A LOT OF VALUE IN RELATION TO THE FRIEZE THIS PROBLEM MAY NOT EVER BE CONCLUSIVELY SOLVED BUT THE DISCUSSION WILL CONTINUE SAYS HOMER THOMPSON PROFESSOR OF HISTORY AT THE INSTITUTE FOR ADVANCED STUDY AT PRINCETON IT IS A VERY GREAT THEME IN THE HISTORY OF ATHENS IN HER PRIME AND IN HER GLORY 9401060068 940106 MARKETING & MEDIA MEMPHIS FLIGHTS PUT A TWIST ON ROCKING 'ROUND THE CLOCK DISCOUNT FARES TO GRACELAND IN A SINGLE DAY ARE PART OF LATEST MARKETING FAD BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FEW TRAVELERS ENJOY SQUEEZING ROUNDTRIP FLIGHTS INTO A SINGLE DAY BUT A NEW WAVE OF SPECIAL DISCOUNTS IS LURING FLYERS ON THESE HURRIED EXCURSIONS QUICKHIT FARE SALES THAT REQUIRE PASSENGERS TO DEPART AND RETURN ON THE SAME DAY ARE THE LATEST AIRLINE MARKETING FAD MAKING THEIR DEBUT WITH THE RECENT HOLIDAY SEASON IN THE LATEST EXAMPLE NORTHWEST AIRLINES ANNOUNCED YESTERDAY THAT IT WAS OFFERING DISCOUNT ELVIS FARES FOR TRAVEL TO AND FROM MEMPHIS ON THE LATE ROCK LEGEND'S BIRTHDAY THIS SATURDAY ONE EXAMPLE A ROUNDTRIP ELVIS FARE FROM ATLANTA IS 79 COMPARED WITH THE NORMAL WALKUP PRICE OF 874 MEMPHIS OF COURSE IS HOME TO ELVIS PRESLEY'S GRACELAND MANSION AND IS ALSO THE SITE OF A STRUGGLING NORTHWEST HUB ELVIS'S BIRTHDAY IS A ONEDAY EVENT AND PEOPLE MAKE PILGRIMAGES TO GRACELAND SAID A SPOKESMAN FOR NORTHWEST A UNIT OF WINGS HOLDINGS INC NOT TO BE OUTDONE AMR CORP'S AMERICAN AIRLINES RESPONDED BY OFFERING 79 ROUNDTRIP FARES FROM ITS THREE HUB CITIES DALLAS/FORT WORTH CHICAGO AND NASHVILLE AND THE AIRLINE WILL ALSO GIVE OUT 20 REFUNDS TO PASSENGERS DRESSED IN ELVIS GARB SIDEBURNS AREN'T NECESSARY SUCH SPECIALEVENT SALES ENABLE CARRIERS TO BUILD UP GOODWILL WITH GRATEFUL CUSTOMERS IN THIS CASE MR PRESLEY'S DETERMINED FOLLOWERS BUT THE DISCOUNT IS SO NARROW IN THIS CASE APPLYING TO ONE CITY ON ONE DAY THAT IT SHOULDN'T DILUTE REVENUE BY DISPLACING HIGHERFARE PASSENGERS THE SALES ARE ALSO ONLY OFFERED ON LIGHT TRAVEL DAYS WHEN MOST CARRIERS WOULD OTHERWISE BE FLYING HALFEMPTY PLANES AN INDEPENDENCE DAY FARE SALE IS LIKELY THIS YEAR FOR INSTANCE AIRLINE OFFICIALS SAY ONEDAY DISCOUNTS APPARENTLY WORKED FOR NORTHWEST WHEN IT SOLD CUTRATE TICKETS TO MINNEAPOLIS ON THE LAST SIX SATURDAYS BEFORE CHRISTMAS THE IDEA WAS TO DRAW HOLIDAY SHOPPERS FOR DAYLONG BUYING BINGES AT THE MALL OF AMERICA THE NATION'S LARGEST MALL NORTHWEST SAID THE LOW FARES GENERATED AN EXTRA 15000 TICKET SALES DELTA AIR LINES MEANTIME CUT TICKET PRICES FOR ROUNDTRIP TRAVEL ON CHRISTMAS DAY AND THEN ON DEC 31 AND JAN 1 MOST RIVALS MATCHED DELTA'S MOVE THE CHRISTMAS SALE WHICH CUT SOME ROUNDTRIP FARES TO 79 RESULTED IN AT LEAST 7000 EXTRA PASSENGERS AND 500000 IN EXTRA REVENUE A DELTA SPOKESMAN SAID I FIRST THOUGHT THAT A ONEDAY CHRISTMAS SALE WOULD HAVE SOME PEOPLE SAYING COME ON DELTA COULDN'T YOU BE A LITTLE BIT MORE GENEROUS' BUT WE HAVEN'T HAD ONE COMPLAINT THE SPOKESMAN SAID AIRLINE CRITICS SAY THE LATEST FARE FAD WILL HAVE LITTLE IMPACT IN SOLVING THE INDUSTRY'S WOES NAMELY HIGH COSTS WHICH LEAD TO HIGH FARES WHICH FORCE CARRIERS TO DISCOUNT TICKET PRICES TO BEGIN WITH BUT OTHER OBSERVERS CREDIT THE AIRLINES FOR DELIVERING A REASONABLY INNOVATIVE PROMOTION IT'S SHOWMANSHIP THROW SOMETHING OUT THERE THAT GRABS CONSUMERS' ATTENTION BUT IT MAY PRESAGE MORE CREATIVE MARKETING SUCH AS TARGETING SPECIFIC FLIGHTS AS OPPOSED TO ROUTES FOR DISCOUNTS SAID JOSE G DA ROSA PRESIDENT OF BALBOA TRAVEL INC IN SAN DIEGO 9401060067 940106 TECHNOLOGY BRIEF COPLEY PHARMACEUTICALS INC INHALATION SOLUTION RECALLED BECAUSE OF BACTERIA PROBLEM COPLEY PHARMACEUTICALS INC ANNOUNCED A NATIONWIDE RECALL OF A RESPIRATORY INHALATION SOLUTION BECAUSE OF BACTERIAL CONTAMINATION THE CANTON MASS COMPANY SAID IT RECALLED ALL UNITS OF ALBUTEROL SULFATE INHALATION SOLUTION A PRODUCT USED BY TO RELIEVE ASTHMA AND OTHER RESPIRATORY AILMENTS COPLEY SAID CONSUMERS USING ALBUTEROL SULFATE INHALATION SOLUTION 05 SHOULD STOP USING THE PRODUCT AT ONCE AND RETURN ANY UNUSED PORTIONS TO THEIR PHARMACIST COPLEY SAID IT WAS ISSUING THE RECALL IN COOPERATION WITH THE FOOD AND DRUG ADMINISTRATION THE RECALL DOESN'T AFFECT ALBUTEROL SULFATE INHALATION SOLUTION 0083 9401060066 940106 BUSINESS BRIEF COMPUTER SCIENCES CORP COMPANY ACQUIRES A UNIT OF SEQUA'S ATLANTIC RESEARCH COMPUTER SCIENCES CORP SAID IT ACQUIRED ARC PROFESSIONAL SERVICES GROUP A UNIT OF SEQUA CORP'S ATLANTIC RESEARCH CORP FOR ABOUT 64 MILLION IN CASH ARC A ROCKVILLE MD INFORMATION TECHNOLOGY CONCERN HAS 2000 EMPLOYEES AND ABOUT 170 MILLION IN ANNUAL REVENUE WITH ABOUT 80 COMING FROM FEDERAL CONTRACTS MUCH OF WHICH COMES FROM THE DEFENSE DEPARTMENT COMPUTER SCIENCES AN EL SEGUNDO CALIF INFORMATION TECHNOLOGY COMPANY GENERATES ABOUT HALF OF ITS REVENUE OR 125 BILLION A YEAR FROM FEDERAL CONTRACTS THE OPERATION WILL BECOME PART OF COMPUTER SCIENCES' SYSTEMS ENGINEERING UNIT BASED IN FALLS CHURCH VA 9401060065 940106 BUSINESS BRIEF BELLSOUTH CORP FLORIDA PUBLIC COUNCIL CLEARS UNIT'S 300 MILLION RATE CUT BELLSOUTH CORP ATLANTA SAID FLORIDA'S LEADING CONSUMER ADVOCATE FLORIDA PUBLIC COUNCIL APPROVED A 300 MILLION RATE CUT OVER THREE YEARS FOR THE COMPANY'S SOUTHERN BELL UNIT THE RATE CUT WHICH MUST STILL BE APPROVED BY THE FLORIDA PUBLIC SERVICE COMMISSION WOULD REDUCE THE MONTHLY PHONE BILL FOR THE AVERAGE CUSTOMER IN FLORIDA BY ABOUT 1 BY ELIMINATING THE CHARGE FOR TOUCHTONE SERVICE ABOUT 93 OF BELLSOUTH'S CUSTOMERS IN FLORIDA HAVE TOUCHTONE SERVICE A SPOKESMAN SAID THE RATE CUT HAS BEEN ENDORSED BY FLORIDA'S ATTORNEY GENERAL THE AMERICAN ASSOCIATION OF RETIRED PERSONS AND THE FLORIDA CONSUMER ACTION NETWORK 9401060064 940106 MENDOZA LED MORGAN TO BUY BANESTO STAKE BY STEVEN LIPIN AND NICHOLAS BRAY STAFF REPORTERS OF THE WALL STREET JOURNAL ROBERTO MENDOZA THE CONTROVERSIAL VICE CHAIRMAN OF JP MORGAN & CO APPEARS TO HAVE BEEN THE CHIEF PROPONENT BEHIND THE BANK'S FAILED INVESTMENT IN A SPANISH BANK PEOPLE CLOSE TO MORGAN SAY MR MENDOZA USED HIS CONSIDERABLE CLOUT TO FORCE THE INVESTMENT ON MORGAN'S CORSAIR PARTNERSHIP A LIMITED PARTNERSHIP OVER THE OBJECTIONS OF OTHER MORGAN STAFFERS INCLUDING FUND MANAGER NICHOLAS PAUMGARTEN BY MOST ACCOUNTS MR MENDOZA WAS THE ARCHITECT OF MORGAN'S ILLFATED INVESTMENT IN BANCO ESPANOL DE CREDITO OR BANESTO WHICH WAS EFFECTIVELY SEIZED BY SPANISH GOVERNMENT REGULATORS LAST WEEK MORGAN AND ITS CLIENTS INVESTED 166 MILLION LAST YEAR THROUGH THE CORSAIR PARTNERSHIP A 1 BILLION FUND SET UP TO INVEST IN TROUBLED BANKS AROUND THE WORLD SOON AFTER MORGAN TOOK THE POSITION IN BANESTO MR MENDOZA WAS NAMED TO THE SPANISH BANK'S BOARD BANESTO'S MANAGEMENT AND THE BOARD WERE OUSTED LAST WEEK AND CORSAIR IS AT RISK OF LOSING ITS INVESTMENT WITHIN THE BANK MR MENDOZA IS UNDERSTOOD TO HAVE TAKEN FULL RESPONSIBILITY MR MENDOZA FIRST GAINED WIDE PUBLIC ATTENTION IN 1988 WHEN HE PUSHED STAID JP MORGAN INTO BACKING ONE OF ITS CLIENTS IN A HOSTILE BID FOR ANOTHER MORGAN CLIENT WHILE HIS REPUTATION FOR PUSHING THE ENVELOPE HAD STOOD HIM IN GOOD STEAD AT THE FIRM EARLIER HIS CENTRAL ROLE IN THE BANESTO INVESTMENT THREATENS TO UNDERMINE HIS STANDING ACCORDING TO PEOPLE CLOSE TO THE BANK MR MENDOZA WOULDN'T COMMENT SO FAR THE BANK IS PUTTING A BRAVE FACE ON A BAD SITUATION RICHARD MAHONY A SPOKESMAN FOR THE BANK SAID MORGAN IS TAKING A LONGTERM VIEW AND WILL WATCH TO SEE WHAT THE FINAL OUTCOME WILL BE WE WILL WIN SOME AND LOSE SOME THE CORSAIR FUND'S INVESTMENT IN BANESTO ISN'T THE FIRST INTEREST THAT MR MENDOZA HAS EXPRESSED IN THE SPANISH BANK IN 1991 HE PROPOSED THAT MORGAN CAPITAL THE UNIT THAT INVESTS THE BANK'S OWN CAPITAL TAKE A 25 STAKE IN BANESTO'S NONBANKING SUBSIDIARY CORP INDUSTRIAL Y FINANCIERA DE BANESTO ACCORDING TO A PERSON FAMILIAR WITH THE PROPOSAL THAT IDEA MET RESISTANCE FROM MORGAN STAFFERS IN MADRID WHO EXPRESSED RESERVATIONS ABOUT THE AGGRESSIVE FINANCIAL TACTICS OF BANESTO'S FLASHY CHAIRMAN MARIO CONDE THOSE OBJECTIONS REACHED THE TOP ECHELONS AT MORGAN AND MR MENDOZA'S PROPOSAL WAS REJECTED THE BANK OF SPAIN IN A REPORT ISSUED YESTERDAY SAID BANESTO'S BOOKS FAILED TO REFLECT ITS TRUE PERFORMANCE MR MENDOZA WAS MORE SUCCESSFUL 14 MONTHS LATER DESPITE SIMILAR OBJECTIONS FROM MADRID STAFFERS AND MORE IMPORTANTLY FROM MR PAUMGARTEN THE CORSAIR FUND'S MANAGER SUPPORTERS OF MR PAUMGARTEN ON WALL STREET SAY HE VOICED HIS RESERVATIONS ABOUT THE INVESTMENT BUT ACKNOWLEDGE THAT HE SUPPORTED THE TRANSACTION ONCE IT WAS CLEAR MR MENDOZA WANTED IT TO PROCEED NEITHER MR PAUMGARTEN NOR MR MAHONY WOULD COMMENT THE BANK WON'T EVEN ACKNOWLEDGE THAT AN ARGUMENT TOOK PLACE MR MAHONY THE SPOKESMAN DECLINED COMMENT ON THAT SPECIFIC ISSUE BUT SAID IF THERE WAS A VIGOROUS DEBATE THAT'S NOT A BAD THING IT'S HEALTHY FOR THE PROCESS IT'S WHAT YOU'D EXPECT WHEN CONSIDERING AN INVESTMENT OF THIS KIND SOME POTENTIAL INVESTORS OF CORSAIR WHO DID THEIR OWN DUEDILIGENCE INQUIRIES ON BANESTO WERE PUT OFF BY SOME OF THE BANK'S PRACTICES AMONG THE COMPLAINTS WERE BANESTO'S INABILITY TO QUANTIFY ITS RESERVES FOR CREDIT LOSSES AND THE FACT THAT SIZABLE PARTS OF THE BANK'S BUSINESSES WEREN'T COMPUTERIZED BUT WERE TRACKED MANUALLY ON PIECES OF PAPER NOW CURRENT INVESTORS IN CORSAIR ARE GRIPING TO RIVAL BANKS THAT THEY INVESTED IN THE FUND SOLELY ON THE BASIS OF MORGAN'S REPUTATION BUT THEY BELIEVE MORGAN'S DUEDILIGENCE INVESTIGATION WAS INADEQUATE MR MAHONY SAID HOWEVER THAT WE WERE PLEASED TO SEE THAT SPANISH OFFICIALS LAST WEEK PRAISED THE THOROUGHNESS OF MORGAN'S DISCLOSURES IN THE EQUITY OFFERING CLEARLY MORGAN WAS EARNING SIGNIFICANT FEES FROM ITS RELATIONSHIP WITH BANESTO BUT MORGAN EXECUTIVES SAY IT WOULDN'T PUT ITS CLIENTS' FUNDS AT RISK JUST TO WIN UNDERWRITING ASSIGNMENTS FOR MORGAN CORSAIR WAS THE FIRST BIG FORAY INTO MERCHANT BANKING IN YEARS IT WAS A NATURAL EVOLUTION MR MENDOZA SAID IN AN INTERVIEW IN JULY AFTER ALL MORGAN HAD SPENT THE PREVIOUS 10 YEARS MOVING AWAY FROM TRADITIONAL BANKING TOWARD MORE SOPHISTICATED PRODUCTS DEMANDED BY ITS CLIENTS AND MERCHANT BANKING WAS ONE OF THE LAST OF THOSE PRODUCTS IT HAS BEEN CREATING AND IS EXPECTED TO CLOSE SOON ON TWO 500 MILLION FUNDS ONE TO INVEST IN REAL ESTATE THE OTHER TO INVEST IN INSURANCE MORGAN HAD BEEN INVESTING ON ITS OWN THROUGH MORGAN CAPITAL AND RACKED UP HUGE GAINS WITH INVESTMENTS IN SUCH DEALS AS THE LEVERAGED BUYOUT OF HOSPITAL CORP OF AMERICA MORGAN'S HCA STOCK IS NOW VALUED BY ANALYSTS AT CLOSE TO 1 BILLION AND ITS INSURANCE HOLDINGS HAVE ALSO BEEN A BIG MONEYWINNER CAPITAL IS SOMETHING TO BE HUSBANDED AND INVESTED CAREFULLY MR MENDOZA SAID IN THE JULY INTERVIEW ALTHOUGH MR MENDOZA A YALEEDUCATED CUBANBORN EXECUTIVE DOESN'T FIT THE TYPICAL MORGAN MOLD HE IS SAID TO BE DEEPLY DEVOTED TO THE COMPANY HE CAN BE GRACIOUS IN PERSON BUT DOMINEERING AND HARDNOSED IN BUSINESS MATTERS HE MORE THAN ANYONE ELSE BUILT MORGAN'S MERGER AND INVESTMENT BANKING BUSINESS FROM ALMOST NOTHING AND IS WIDELY REGARDED AS A RAINMAKER WHO CAN BRING IN DEALS HE'S A FIERCE COMPETITOR IN SPORTS AND HAS BEEN KNOWN TO ENGAGE IN MIDNIGHT TENNIS MATCHES WHEN HE WAS A RISING STAR AMONG WALL STREET'S MERGER PROS HE TURNED HEADS BY BECOMING THE FIRST PERSON IN A COMMERCIAL BANK TO EARN MORE THAN 2 MILLION HE FRUSTRATED RIVALS ON WALL STREET BECAUSE HE WAS WILLING TO COMPETE ON PRICE FOR M&A SERVICES HE HELPED BREAK THE CLUBBY OLDWORLD CULTURE OF MORGAN IN 1988 BY ADVISING ONE CLIENT F HOFFMANLA ROCHE TO TAKE A HOSTILE RUN AT STERLING DRUG ANOTHER MORGAN CLIENT HE LATER GOT INTO HOT WATER AGAIN WHEN HE ADVISED A COMPANY THEN CALLED SMITHKLINE BECKMAN ON ITS 37ASHARE BID FOR INTERNATIONAL CLINICAL LABS INC THE PROBLEM WAS THAT JAMES HOUGHTON CORNING GLASS CHAIRMAN WAS A MORGAN DIRECTOR AND HAD PREVIOUSLY BID 26 FOR THE COMPANY MR HOUGHTON THREATENED TO LEAVE THE MORGAN BOARD BUT ULTIMATELY WAS PERSUADED TO REMAIN MORGAN EARNED MORE ADVISING SMITHKLINE THAN ITS WORK FOR CORNING ACCORDING TO THE HOUSE OF MORGAN RON CHERNOW'S BOOK ABOUT THE BANK BUT THE BANESTO INVESTMENT IS CONSIDERED TO BE MR MENDOZA'S FIRST MAJOR BLEMISH AND MORGAN EMPLOYEES NOW WHISPER ABOUT THE AFTERSHOCKS WHAT REMAINS UNCLEAR IS WHY HE WAS SO DETERMINED TO DO BUSINESS WITH BANESTO AND MR CONDE INDEED ONE DAY BEFORE THE BANK OF SPAIN TOOK ACTION MR MENDOZA WROTE TO REGULATORS THAT A PLAN TO TURN AROUND THE BANK WAS SOUND AND HAS BEEN REVIEWED BY THE SENIOR MANAGEMENT OF JP MORGAN IN OUR ROLE AS FINANCIAL ADVISER TO BANESTO 9401060063 940106 TECHNOLOGY AT&T BID TO BUY MCCAW CELLULAR MAY HAVE HIT SNAG BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN TELEPHONE & TELEGRAPH CO'S PLAN TO BUY MCCAW CELLULAR COMMUNICATIONS INC MAY HAVE HIT A SNAG AFTER THE JUSTICE DEPARTMENT SAID AT&T SHOULD SEEK SPECIAL PERMISSION FROM FEDERAL COURT IN ITS AT&TMCCAW OPINION WHICH IS NONBINDING THE JUSTICE DEPARTMENT SAID THE COMBINATION SHOULD REQUIRE A WAIVER FROM DISTRICT JUDGE HAROLD H GREENE WHO OVERSEES THE CONSENT DECREE THAT BROKE UP AT&T AND ITS FORMER BELL SYSTEM AT&T HAS ARGUED THAT IT DOESN'T NEED SUCH DISPENSATION THE AGENCY'S OPINION FILED AT THE US DISTRICT COURT FOR THE DISTRICT OF COLUMBIA WAS CONSIDERED BY SOME ANALYSTS TO BE A MINOR TECHNICALITY GREENE CAN TAKE IT OR LEAVE IT SAID GEORGE DELLINGER ANALYST AT NATWEST SECURITIES CORP THIS IS NOT A DEALBREAKER FOR AT&T THE AGENCY WAS RESPONDING TO A PETITION BY BELLSOUTH CORP WHICH HAD SOUGHT A COURT REVIEW HOWEVER IN A RELATED DECISION THE JUSTICE DEPARTMENT SAID IT DIDN'T SUPPORT THE ATLANTABASED BABY BELL'S REQUEST THAT IT BE ALLOWED TO OFFER LONGDISTANCE WIRELESS SERVICES IN ITS REGION IN COMPETITION WITH INDEPENDENT CELLULAR OPERATORS AN AT&T SPOKESMAN BRUSHED ASIDE THE OPINION FAVORING BELLSOUTH'S WAIVER DEMANDS SAYING SUCH A WAIVER IS NOT REQUIRED AND EVEN IF IT IS WE EXPECT THERE WOULD BE NO SIGNIFICANT PROBLEM IN GETTING IT APPROVED AT&T'S SPOKESMAN NOTED THAT THE CONSENT DECREE THAT BROKE UP AT&T PROHIBITED THE COMPANY FROM REACQUIRING BELL ASSETS IT OWNED AT THE TIME OF ITS BREAKUP BUT THE INDEPENDENT CELLULAR FRANCHISES IN WHICH THE BELL COMPANIES HAVE MAJORITY STAKES WITH MCCAW AS A MINORITY PARTNER ARE PROPERTIES THAT THE BABY BELLS DID NOT OWN AT THE TIME OF AT&T'S GIANT DIVESTITURE THAT'S THE WHOLE REASON WE THINK THERE'S NO REASON TO GET A WAIVER THE AT&T SPOKESMAN SAID WE STILL MAINTAIN THAT THERE IS NO IMPEDIMENT TO CLOSING THE AT&TMCCAW MERGER QUICKLY BY THE MIDDLE OF THE YEAR INDEED BELLSOUTH MAY ITSELF HAVE RECEIVED A SETBACK YESTERDAY WHEN THE JUSTICE DEPARTENT SAID IT DIDN'T FAVOR BELLSOUTH'S REQUEST TO PROVIDE LONGDISTANCE SERVICES OVER ITS WIRELESS NETWORK BELLSOUTH HAS MAINTAINED THAT THE AT&TMCCAW COMBINATION WITH ITS LOCAL WIRELESS NETWORKS AND LONGDISTANCE LINES COULD TURN AN ENTIRE REGION INTO AN INEXPENSIVE LOCAL CALLING AREA BY CONTRAST A PHONE COMPANY SUCH AS BELLSOUTH WOULD HAVE TO USE LONGDISTANCE LINKS FROM ANOTHER CARRIER AND PRICE CELLULAR CALLS HIGHER TO RECOVER THESE ADDITIONAL COSTS A BELLSOUTH SPOKESMAN SAID EVEN SO THE BELLSOUTH SPOKESMAN CALLED THE OPINION ON LONGDISTANCE SERVICE A MINOR TECHNICAL POINT SUGGESTING THAT THE COMPANY COULD AGAIN SEEK PERMISSION TO PROVIDE THESE SERVICES IF AT&T IS ASKED TO FILE A REQUEST FOR A WAIVER THE OPINION IS NOT WHAT WE ASKED FOR BUT IT'S A POSITIVE OPINION IN THAT IT DEMONSTRATES THAT THE CONSENT DECREE IS OUTMODED 9401060062 940106 LEISURE & ARTS FILM DOWN BUT NOT OUT IN LONDON AND DUBLIN BY JULIE SALAMON YOU CAN'T MAKE AN OMELETTE WITHOUT CRACKING A FEW EGGS MANKIND IS THE EGGS AND THE OMELETTE STINKS THUS SPEAKS JOHNNY THE VAGRANT PHILOSOPHER ANTIHERO OF NAKED THE MUCHPRAISED FILM FROM BRITISH FILMMAKER MIKE LEIGH IT'S THE KIND OF FILM THAT CRITICS CALL BRAVE MAINLY BECAUSE IT'S SO GRIM AND BECAUSE ITS MAJOR CHARACTERS ARE SO RESOLUTELY UNAPPEALING THE MEN ARE CRUEL WOMENHATERS THE WOMEN ARE MASOCHISTS DARKNESS IS THE WORKING METAPHOR IN THIS FILM WHICH BILLS ITSELF AS AN EXCURSION INTO THE SEAMY UNDERSIDE OF LIFE AMONG THE RECESSIONRAVAGED WORKING CLASS THERE'S NO WAY TO MISS THE METAPHOR NOT WITH DICK POPE'S DEEPLY SHADOWED CINEMATOGRAPHY BUT EVEN WITHOUT THE PICTORIAL GLOOM SPENDING A COUPLE OF HOURS WITH THIS SORRY COLLECTION OF HUMANKIND WOULD BE DEPRESSING I FOUND THE PICTURE'S RELENTLESSLY BLEAK VISION OF BRITISH WORKINGCLASS LIFE TEDIOUS STILL AT TIMES I COULD UNDERSTAND THE PREVAILING FASCINATION WITH NAKED IF NOT THE EXUBERANT PRAISE IT'S RECEIVED MR LEIGH WHO WROTE AS WELL AS DIRECTED THE FILM HAS AN AGILE WIT THAT PERIODICALLY MANIFESTS ITSELF HERE WITH A STRANGE SULLEN FEROCITY HIS CHARACTERS MAY NOT BE MORE THAN THEY SEEM TO BE BUT MR LEIGH MANAGES TO MAKE THE POSSIBILITY PLAUSIBLE THE FILM BEGINS WITH JOHNNY ABUSING ONE WOMAN AND ENDS WITH HIM ABUSING ANOTHER IN BETWEEN HE ABUSES STILL OTHERS HE IS A TALL SKINNY 27YEAROLD DRIFTER WHO HAS RUN AWAY FROM MANCHESTER AND COME TO LONDON LANDING AT THE HOME OF AN OLD GIRLFRIEND LOUISE SHE ISN'T HOME SO HE HAS A CONVERSATION AND SEX WITH ONE OF HER ROOMMATES A WASTED WAIF NAMED SOPHIE JOHNNY HAS A STRANGE SEDUCTIVE POWER OVER ALL THE FILM'S WOMEN EVEN WHEN HE BEATS THEM AND PULLS THEIR HAIR AND TALKS MEANLY TO THEM BAD THINGS HAPPEN TO HIM TOO BUT THE FILM BEGS NO PITY FOR JOHNNY AND EARNS NONE JOHNNY PLAYED WITH SARDONIC POWER BY DAVID THEWLIS IS A FORCEFUL CHARACTER AND THAT FORCE IS MAINLY MENTAL HE ISN'T JUST ANOTHER BAD GUY WHO HATES WOMEN HE IS A TALKER AND A GOOD ONE A NIHILIST WITH A SHREWDLY CYNICAL INTELLIGENCE IF HE DIDN'T LIKE TO PROWL HE MIGHT BE HAPPY SITTING IN COFFEEHOUSES EXPOUNDING ON THE DISMAL STATE OF THE UNIVERSE HOWEVER HE WON'T SETTLE FOR HYPOTHETICALS HIS ODYSSEY THROUGH LONDON INTRODUCES HIM TO MANY SAD WEARY PEOPLE WHO SATISFY HIS SARDONIC WORLDVIEW WHICH HE THEN REINFORCES BY LEAVING THEM SADDER AND WEARIER THAN THEY WERE WHEN THEY MET HIM JOHNNY'S COUNTERPART IS A MYSTERIOUS MAN WHO CALLS HIMSELF JEREMY AND SEBASTIAN THIS MAN PLAYED WITH ROBOTIC COOLNESS BY GREG CRUTTWELL IS RICH AND CONVENTIONALLY HANDSOME AND IS EVEN MORE CRUEL TO WOMEN THAN JOHNNY IS THOUGH THEY EVENTUALLY END UP IN THE SAME HOUSE ABUSING THE SAME WOMEN IT WAS UNCLEAR TO ME WHAT PURPOSE JEREMY/SEBASTIAN SERVES OTHER THAN SHARING THE WOMANBEATING CHORES WHICH HE DOES WITH EXUBERANT VICIOUSNESS IT MUST BE SAID THAT MR LEIGH THE FILMMAKER DOESN'T SEEM TO BE A WOMANHATER HIMSELF UNLESS HE IS USING JOHNNY AND JEREMY/SEBASTIAN TO VENT SOME PRIVATE RAGE THE WOMEN IN NAKED AREN'T MERE PUNCHING BAGS THEY MAY NOT ARTICULATE THEIR DESPAIR AS PUNGENTLY AS JOHNNY BUT THEY EXPRESS IT VERY WELL THE DUBLIN WORKINGCLASS WORLD PRESENTED IN THE SNAPPER ON THE OTHER HAND IS A RATHER GOODNATURED PLACE WHERE PEOPLE APPROACH THE TRAVAILS AND PLEASURES OF EVERYDAY LIFE WITH WRY FORTITUDE THIS SLIGHT SWEET COMEDY DIRECTED WITH NICE WHIMSY BY STEPHEN FREARS WAS ADAPTED BY WRITER RODDY DOYLE FROM THE SECOND OF HIS BARRYTOWN TRILOGY NOVELS ABOUT LIFE IN THE DUBLIN NEIGHBORHOOD OF BARRYTOWN THE FIRST WAS THE COMMITMENTS ABOUT A LOCAL ROCKANDROLL BAND WHICH WAS TURNED INTO A CHARMING PICTURE BY ALAN PARKER IN 1991 THE SNAPPER IS SIMPLY THE STORY OF A YOUNG WOMAN WHO BECOMES PREGNANT OUTOFWEDLOCK AND HOW SHE HER PARENTS AND MANY BROTHERS AND SISTERS AND THE NEIGHBORS COPE SHE'S RELATIVELY BEATIFIC HER FAMILY IS DEAR THE NEIGHBORS GOSSIP ALL WITH QUIRKY WIT MOST ENDEARING IS THE UNBORN BABY'S GRANDFATHER COLM MEANEY AS HE FINDS THE EMBARRASSMENT OF HIS DAUGHTER'S PREGNANCY TURN INTO PLEASURE THE SNAPPER A GENTLY UNASSUMING PICTURE IS YET ANOTHER SURPRISE FROM STEPHEN FREARS THE DIRECTOR HASN'T MADE ALL THAT MANY FILMS BUT HE'S MADE A WIDE VARIETY MOST OF THEM QUITE GOOD HE FIRST MADE A SPLASH IN THIS COUNTRY WITH MY BEAUTIFUL LAUNDRETTE 1985 THIS IS A WONDERFULLY FRESH MOVIE ABOUT THE CLASH OF CULTURES IN WORKINGCLASS LONDON BETWEEN WHITE STREET GANGS ON THE DOLE AND PAKISTANI IMMIGRANTS TRYING TO MAKE THEIR WAY THIS CRYSTALLIZES CASUALLY INTO A LOVE AFFAIR BETWEEN TWO MEN ONE FROM EACH FACTION LATER IN THE US MR FREARS MADE DANGEROUS LIAISONS 1988 THE GRIFTERS 1990 AND HERO 1992 ALL ENJOYABLE ALL VERY DIFFERENT FROM EACH OTHER 9401060061 940106 WHO'S NEWS ROCKWELL INTERNATIONAL GIVES LONGTERM PAY TO TOP FIVE OFFICIALS SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP AFTER ELIMINATING ALL LONGTERM COMPENSATION FOR SENIOR EXECUTIVES IN 1992 GAVE ITS TOP FIVE OFFICIALS NEARLY 8 MILLION IN SUCH INCENTIVE PAY FOR 1993 CHAIRMAN DONALD R BEALL ACCORDING TO THE COMPANY'S PROXY STATEMENT COLLECTED 35 MILLION IN LONGTERM INCENTIVE PAY IN ADDITION TO THE 17 MILLION HE RECEIVED IN ANNUAL SALARY AND BONUS THE COMPANY'S OTHER FOUR HIGHESTPAID EXECUTIVES RECEIVED AN ADDITIONAL 45 MILLION IN LONGTERM INCENTIVE PAY OVERALL THE COMPANY'S STATEMENT LISTS TOTAL COMPENSATION FOR THE FIVE EXECUTIVES AT NEARLY 13 MILLION PROXY MATERIALS INDICATE ROCKWELL'S BOARD BELIEVES BASE SALARIES FOR THE EXECUTIVES REMAIN SOMEWHAT BELOW THE MEDIAN FOR INDUSTRY BUT LONGTERM INCENTIVES OFFER THE OPPORTUNITY FOR COMPENSATION AT THE HIGH END 9401060060 940106 WHO'S NEWS TLC BEATRICE TO REPLACE FUGETT AS CHAIRMAN CEO BY CONSTANCE MITCHELL FORD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TLC BEATRICE INTERNATIONAL HOLDINGS INC SAID IT WILL REPLACE JEAN S FUGETT JR AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER A MOVE THAT WAS GREETED WITH ENTHUSIASM BY SOME STOCKHOLDERS THE INTERNATIONAL FOOD COMPANY SAID THAT LOIDA NICOLAS LEWIS THE MAJORITY SHAREHOLDER OF TLC BEATRICE WILL ASSUME THE TITLE OF CHAIRMAN EFFECTIVE FEB 1 THE COMPANY SAID IT HAS BEGUN A SEARCH FOR A CHIEF EXECUTIVE WE ARE EXCITED THAT THEY ARE LOOKING FOR A NEW CEO SAID MARGARET SCHELL AN ANALYST AT JEFFERIES & CO WHICH TRADES THE COMPANY'S CLOSELY HELD STOCK TLC BEATRICE SHE SAID REALLY NEEDS SOMEONE RUNNING THE COMPANY WHO IS FAMILIAR WITH THE INDUSTRY MRS LEWIS IS THE WIDOW OF REGINALD F LEWIS TLC BEATRICE'S FOUNDER CHAIRMAN AND CEO WHO DIED A YEAR AGO AFTER A BRIEF ILLNESS PRIOR TO HIS DEATH MR LEWIS WAS ONE OF AMERICA'S BESTKNOWN BLACK BUSINESS FIGURES AMASSING A FORTUNE ESTIMATED AT 400 MILLION CHIEFLY BY ACQUIRING COMPANIES IN LEVERAGED BUYOUTS AFTER HIS DEATH MANAGEMENT CONTROL OF TLC BEATRICE WAS HANDED TO MR FUGETT MR LEWIS'S HALFBROTHER MR LEWIS'S FAMILY OWNS ABOUT 55 OF THE COMPANY'S STOCK MOST OF THE REMAINING SHARES ARE OWNED BY TLC BEATRICE BONDHOLDERS SHAREHOLDER CONFIDENCE IN MR FUGETT A LAWYER WHO ONCE PLAYED PROFESSIONAL FOOTBALL QUICKLY DETERIORATED AS THE COMPANY'S FORTUNES DECLINED AND AFTER IT WAS DISCLOSED THAT THE COMPANY WAS CONSIDERING BIDDING ON THE BALTIMORE ORIOLES BASEBALL TEAM AT THAT POINT SHAREHOLDERS LOST PATIENCE WITH MR FUGETT'S LEADERSHIP AND FORCED THE COMPANY TO REGISTER ITS SECURITIES WITH THE SECURITIES AND EXCHANGE COMMISSION A MOVE THAT ESSENTIALLY WILL TAKE THE COMPANY PUBLIC THE COMPANY'S STOCK IS EXPECTED TO BEGIN TRADING ON THE NASDAQ STOCK MARKET SOON MR FUGETT SAID HE WILL SERVE AS CEO UNTIL A SUCCESSOR IS APPOINTED SUBSEQUENTLY HE WILL CONTINUE AS A MEMBER OF THE BOARD AND THE MANAGEMENT COMMITTEE MRS LEWIS AN IMMIGRATION ATTORNEY AND NATIVE OF THE PHILIPPINES IS CURRENTLY CHAIRMAN OF THE REGINALD F LEWIS FOUNDATION A PRIVATE ENTITY THAT HAS PLEDGED OR GIVEN 12 MILLION TO INSTITUTIONS AROUND THE WORLD WITH AN EMPHASIS ON AFRICANAMERICAN CAUSES 9401060059 940106 WEDNESDAY'S MARKETS STOCKS GAIN 1492 POINTS TO A RECORD BONDS SLUMP ON RISE IN FACTORY ORDERS THE DOLLAR ADVANCES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE OVERCAME A PLUNGE IN BOND PRICES TO SURGE TO A RECORD THE DOLLAR ROSE THE INDUSTRIAL AVERAGE JUMPED 1492 POINTS TO 379882 EDGING PAST THE PREVIOUS RECORD OF 379433 SET DEC 29 STANDARD & POOR'S 500STOCK INDEX GAINED 066 TO 46755 AND THE NASDAQ COMPOSITE INDEX ROSE 377 TO 77805 INVESTORS PILED INTO ECONOMICALLY SENSITIVE STOCKS BETTING ON STILL FURTHER STRENGTH IN THE ECONOMY IN THE LATEST SIGN OF THE ECONOMY'S VIGOR THE COMMERCE DEPARTMENT REPORTED THAT NEW FACTORY ORDERS ROSE 14 IN NOVEMBER TO A RECORD SEASONALLY ADJUSTED LEVEL THE DOW JONES TRANSPORTATION AVERAGE OFTEN VIEWED AS AN INDICATOR OF FUTURE ECONOMIC GROWTH SOARED 2424 POINTS TO A RECORD 177883 THAT'S A CLEAR CONFIRMATION THAT THE TREND IN THE INDUSTRIALS IS UP AND THAT WE SHOULD GET CLOSER TO 4000 ON THE DOW BEFORE THIS MOVE IS OVER SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES THE STOCK MARKET'S SURGE IN THE FACE OF SLUMPING BOND PRICES ALSO SHOWED INVESTORS' OPTIMISM ABOUT THE ECONOMY MR CANELO SAID WE'RE IN A PERIOD OF SUCH POSITIVE EXPECTATIONS FOR THE ECONOMY AND FOR EARNINGS THAT STOCKS AND BONDS CAN MOVE IN OPPOSITE DIRECTIONS HE SAID BOND PRICES TUMBLED IN WHAT IS SHAPING UP AS A VOLATILE WEEK OF BONDMARKET TRADING AFTER PLUNGING MORE THAN A POINT OR OVER 10 FOR EACH 1000 FACE AMOUNT ON MONDAY THE TREASURY'S BENCHMARK 30YEAR ISSUE SOARED NEARLY A POINT TUESDAY ONLY TO SINK 3/4 POINT YESTERDAY PUSHING THE YIELD UP TO 640 THIS KIND OF TRADING SUGGESTS A PRETTY STRONG DIVIDE BETWEEN THE BONDMARKET BULLS AND BEARS SAID EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE WHILE BOTH BULLS AND BEARS RECOGNIZE THE ECONOMY IS PICKING UP STRENGTH THEY DIFFER ON WHETHER THE ACCELERATION WILL BREED INFLATION EVENTUALLY THE DEBATE WILL BE RESOLVED IN FAVOR OF THE BULLS AS THE ECONOMY CONTINUES TO GROW BUT INFLATION STAYS LOW THANKS TO PRODUCTIVITYLED GROWTH MR YARDENI ARGUED HE EXPECTS THE BOND MARKET TO REMAIN VOLATILE THROUGH THE QUARTER AS THE YIELD ON THE TREASURY'S 30YEAR ISSUE SETTLES INTO A TRADING RANGE OF 62 TO 65 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 026 TO 11174 IN MAJOR MARKET ACTION STOCK PRICES CLIMBED VOLUME TOTALED 3751 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1196 ISSUES ROSE AND 999 FELL THE DOLLAR GAINED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17395 MARKS AND 11290 YEN COMPARED WITH 17355 MARKS AND 11270 YEN TUESDAY 9401060058 940106 BUSINESS BRIEF SOCIETY CORP KEYCORP AND SOCIETY SET MEETINGS FOR MERGER VOTE SPECIAL SHAREHOLDER MEETINGS HAVE BEEN SCHEDULED FOR CLEVELANDBASED SOCIETY CORP AND ALBANY NYBASED KEYCORP ON FEB 16 TO VOTE ON THE MERGER AGREEMENT BETWEEN THE TWO COMPANIES DETAILS ABOUT THE MEETINGS AND TERMS OF THE MERGER ARE BEING SENT TO SHAREHOLDERS IN PROXY MATERIALS SHAREHOLDERS OF RECORD AT THE CLOSE OF BUSINESS DEC 28 1993 WILL HAVE THE RIGHT TO VOTE AT THE MEETINGS THE TWO BANK HOLDING COMPANIES AGREED TO MERGE ON OCT 4 1993 WITH THE NEW CORPORATION TO BE NAMED KEY BANCSHARES INC THE TWO COMPANIES ALSO SAID SHAREHOLDERS WOULD VOTE ON A COMBINED BOARD OF DIRECTORS AT AN ANNUAL MEETING FOR THE NEW COMPANY ON MAY 19 1994 9401060057 940106 MELLON BANK SMITH BARNEY SHEARSON REACH ACCORD ON DIVERTING OF BUSINESS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MELLON BANK CORP AND SMITH BARNEY SHEARSON INC REACHED A SETTLEMENT IN MELLON'S LAWSUIT ACCUSING SMITH BARNEY SHEARSON OF DIVERTING MUTUALFUND BOOKKEEPING BUSINESS AWAY FROM THE BANK'S BOSTON CO UNIT UNDER THE AGREEMENT MELLON AND SMITH BARNEY SHEARSON WILL DIVVY UP THE BUSINESS OF PROVIDING ADMINISTRATIVE SERVICES TO CERTAIN SMITH BARNEY SHEARSON FUNDS WITH EACH RECEIVING FEES FOR SERVICES PROVIDED THE COMPANIES DIDN'T ELABORATE ON WHICH COMPANY WILL PROVIDE WHICH SERVICES THE AGREEMENT WHICH WAS ANNOUNCED AFTER THE CLOSE OF TRADING IS EFFECTIVE THROUGH MAY 2000 SMITH BARNEY SHEARSON IS OWNED BY TRAVELERS INC FORMERLY PRIMERICA CORP ANALYSTS WERE SURPRISED BY THE NATURE OF THE AGREEMENT SOME HAD EXPECTED ANY SETTLEMENT TO INVOLVE A SALE OF THE ADMINISTRATIVE CONTRACT TO SMITH BARNEY SHEARSON BY MELLON J RICHARD FREDERICKS AN ANALYST WITH MONTGOMERY SECURITIES SAID IT SOUNDS LIKE MELLON GOT AT LEAST WHAT IT BARGAINED FOR WHEN IT ACQUIRED BOSTON COAND THAT'S A POSITIVE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MELLON SHARES FELL 50 CENTS TO 52625 WHILE TRAVELERS SHARES DROPPED 25 CENTS TO 4025 MELLON ACQUIRED BOSTON CO LAST YEAR FROM AMERICAN EXPRESS CO FOR 145 BILLION ITS SUIT FILED IN SEPTEMBER IN US DISTRICT COURT IN PITTSBURGH CONTENDED THAT SMITH BARNEY SHEARSON SET UP MUTUAL FUNDS THAT ARE CLONES OR REPLICAS OF FUNDS THAT BOSTON CO ADMINISTERS FOR SHEARSON MELLON SAID THIS VIOLATED A NONCOMPETE AGREEMENT THAT WAS PART OF PRIMERICA'S 115 BILLION ACQUISITION OF SHEARSON FROM AMERICAN EXPRESS LAST YEAR IN EARLY DECEMBER A FEDERAL JUDGE ISSUED A PRELIMINARY INJUNCTION BARRING SMITH BARNEY SHEARSON FROM DIVERTING ITS MUTUALFUND BOOKKEEPING BUSINESS FROM MELLON THE INJUNCTION WAS CONSIDERED A VICTORY FOR MELLON AS THE BANK HAD CONSIDERED THE CASE CRITICAL TO THE FUTURE OF BOSTON CO'S MUTUALFUND BUSINESS THE SHEARSON FUNDS ACCOUNT FOR ABOUT 100 MILLION OF BOSTON CO'S ANNUAL MUTUALFUND SERVICING REVENUE OF 170 MILLION YESTERDAY'S SETTLEMENT COVERS ORIGINAL SHEARSON FUNDS AND ANY FUNDS SUBSEQUENTLY CREATED BY SMITH BARNEY SHEARSON THROUGH 2000 MELLON SAID THE AGREEMENT WILL RESULT IN A SLIGHT DECLINE IN EXPECTED BOSTON CO REVENUE AS MUCH AS 10 MILLION IN 1994 BUT GREATERTHANEXPECTED REVENUE IN THE FOLLOWING YEARS BECAUSE OF THE FUNDS' EXPECTED GROWTH IN ASSETS THE SETTLEMENT REVIVES WHAT ONCE WAS AN AMICABLE RELATIONSHIP BETWEEN THE TWO COMPANIES AND ITS LEADERS LONGTIME BUSINESS ASSOCIATES INDEED THE AGREEMENT WAS REACHED FOLLOWING A RECENT CONVERSATION IN NEW YORK BETWEEN THE CHAIRMEN MELLON'S FRANK V CAHOUET AND TRAVELERS' SANFORD I WEILL WE HAVE PRESERVED OUR RELATIONSHIP WITH THE SMITH BARNEY SHEARSON FUND FAMILY INTO THE NEXT CENTURY AND WILL BENEFIT FROM THE ONGOING GROWTH OF ONE OF THE NATION'S PREMIER FUND FAMILIES MR CAHOUET SAID MR WEILL SAID WE ARE PLEASED TO HAVE RESOLVED THIS HIGHLY COMPLEX MATTER IN A MUTUALLY SATISFACTORY MANNER 9401060056 940106 MERRILL LYNCH DECIDES TO HALT NEW BUSINESS WITH WASHINGTON DC NEW YORK AP MERRILL LYNCH & CO HAS TEMPORARILY SUSPENDED NEW BUSINESS WITH WASHINGTON DC AFTER ALLEGATIONS THAT MERRILL HAD A CONFLICT OF INTEREST WITH THE CITY'S INVESTMENT ADVISER LAZARD FRERES & CO MERRILL'S MOVE WILL PREVENT IT FROM COMPETING FOR ABOUT A MONTH FOR LUCRATIVE UNDERWRITING DEALS FOR DISTRICT OF COLUMBIA MUNICIPAL BONDS THE MOVE CAME AS TWO COUNCIL MEMBERS ASKED FOR AN INVESTIGATION INTO A FEESPLITTING AGREEMENT BETWEEN MERRILL AND LAZARD CONCERNING TWO FINANCIAL DEALS KNOWN AS INTERESTRATE SWAPS WITH THE DISTRICT IN 1991 AND 1992 MERRILL AND LAZARD WHICH FACE SIMILAR CONFLICT CHARGES IN MASSACHUSETTS DENY ANY WRONGDOING IN BOTH CASES THEY SAID THEY FULLY DISCLOSED AGREEMENTS IN BOTH CASES FOR LAZARD TO ADVISE MERRILL ON THE SWAPS THE SWAPS ARE COMPLEX TRANSACTIONS DESIGNED TO LOWER A CUSTOMER'S FINANCING COSTS BY EXCHANGING FIXEDINTEREST PAYMENTS FOR VARIABLE PAYMENTS MERRILL'S ACTION COMES AT A TIME OF INTENSE SCRUTINY OF THE 12 TRILLION MUNICIPALBOND MARKET AFTER ALLEGATIONS LAST YEAR FROM SEVERAL STATES OF INFLUENCEPEDDLING OR CONFLICTS OF INTEREST MERRILL IS THE NATION'S LARGEST MUNICIPALBOND UNDERWRITER 9401060054 940106 LETTERS TO THE EDITOR ANIMALRIGHTS EFFORTS HURT MEDICAL RESEARCH THE FACT THAT THERE IS AN INCREASE IN YOUNG LAWYERS INTERESTED IN ANIMAL RIGHTS LAW IS A FOREBODING SIGN FOR ANYONE CONCERNED WITH HEALTH CARE LAWYERS CHOOSE ANIMAL RIGHTS AS PET PROJECTS LEGAL BEAT DEC 2 ANIMALRIGHTS GROUPS HAVE SHIFTED THE JUDICIAL FOCUS FROM LEGITIMATE ANIMAL WELFARE ISSUES TO THE PROTECTION OF ANIMAL RIGHTS A MISGUIDED PHILOSOPHY THAT CALLS FOR THE IMMEDIATE ABOLITION OF THE USE OF ANIMALS FOR ANY REASON INCLUDING LIFESAVING MEDICAL RESEARCH AS A RESULT INSTEAD OF SECURING THE HUMANE TREATMENT OF ANIMALS ANIMALRIGHTS LAWYERS ARE NOW ASKED TO PROTECT THOSE EXTREMISTS WHO DESTROY RESEARCH FACILITIES AND CRIPPLE THE MEDICAL RESEARCH COMMUNITY THROUGH EXCESSIVE REGULATION ANIMAL RESEARCH IS ALREADY AMONG THE MOST HEAVILY REGULATED ACTIVITIES IN THE COUNTRY IN FACT DR DAVID KIPNIS OF WASHINGTON UNIVERSITY IN ST LOUIS REMARKED AT A CONGRESSIONAL BIOMEDICAL RESEARCH CAUCUS LUNCHEON RECENTLY THAT WITH ALL THESE REGULATIONS IT SEEMS IT COSTS AS MUCH OR MORE TO BUILD AN ANIMAL RESEARCH LABORATORY THAN TO BUILD A HOSPITAL MANY OF THESE REGULATIONS DO NOT CONTRIBUTE TO ANIMAL WELFARE BUT COST RESEARCHERS TIME AND MONEY THUS AMERICANS WAIT LONGER FOR CURES AND TREATMENTS AND PAY MORE FOR THEIR HEALTH CARE 9401060052 940106 TWO MEN ARE INDICTED IN SCHEME AT EXUNIT OF NATIONAL MEDICAL TOPEKA KAN A FEDERAL GRAND JURY HERE CHARGED A TOP HOSPITAL ADMINISTRATOR AND ANOTHER MAN WITH CONSPIRING TO OBTAIN PATIENT REFERRALS ILLEGALLY FOR PARKVIEW HOSPITAL OWNED BY NATIONAL MEDICAL ENTERPRISES INC AT THE TIME OF THE ALLEGED WRONGDOING MARK M JACKSON 43 YEARS OLD THE TOPEKA PSYCHIATRIC HOSPITAL'S CHIEF EXECUTIVE UNTIL MAY 1992 AND ROBERT MARTINEZ 39 A FORMER MARKETING CONSULTANT FOR THE FACILITY EACH WAS INDICTED ON 32 COUNTS RELATED TO THE ALLEGED CONSPIRACY CARRIED OUT BETWEEN NOVEMBER 1990 AND DECEMBER 1991 MR JACKSON'S INDICTMENT IS THE FIRST OF A NATIONAL MEDICAL EMPLOYEE IN CONNECTION WITH A FEDERAL INVESTIGATION OF SUSPECTED CRIMINAL MISCONDUCT IN ITS PSYCHIATRIC OPERATIONS IN NOVEMBER THE COMPANY IN SANTA MONICA CALIF AGREED TO PLEAD GUILTY TO FEDERAL CRIMINAL CHARGES INVOLVING ITS SHUTTERED PSYCHIATRIC HOSPITAL IN SAN ANTONIO NEITHER NATIONAL MEDICAL ENTERPRISES NOR PARKVIEW HOSPITAL WAS NAMED A DEFENDANT IN THE TOPEKA INDICTMENT AND NATIONAL MEDICAL DECLINED TO COMMENT ON THE ALLEGATIONS NATIONAL MEDICAL SOLD THE HOSPITAL IN JUNE ATTORNEYS FOR THE TWO INDICTED INDIVIDUALS COULDN'T BE REACHED ACCORDING TO THE INDICTMENT MR JACKSON AND MR MARTINEZ MET WITH A US POSTAL SERVICE EMPLOYEE IN NOVEMBER 1990 AND OFFERED TO PAY HIM 3000 A MONTH TO REFER PATIENTS TO PARKVIEW THE EMPLOYEE LOUIS ALBERT GARCIA WAS AN EMPLOYEE ASSISTANCE COUNSELOR MR GARCIA PLEADED GUILTY IN NOVEMBER FOR HIS ROLE IN THE SCHEME AND FACES A MAXIMUM SENTENCE OF FIVE YEARS IN PRISON AND A 50000 FINE PROSECUTORS SAID 9401060051 940106 BUSINESS BRIEF SPS TECHNOLOGIES INC COMPANY TO TAKE CHARGE FOR COSTCUTTING PROGRAM SPS TECHNOLOGIES INC SAID IT WOULD RECORD A 20 MILLION TO 25 MILLION FOURTHQUARTER CHARGE TO FUND A COSTREDUCTION PROGRAM THAT INCLUDES THE ELIMINATION OF 200 JOBS THE NEWTOWN PA COMPANY WHICH MAKES AIRCRAFT FASTENERS SAID IT HAS ALSO SUBSTANTIALLY REDUCED ITS CORPORATE STAFF IS MOVING ITS CORPORATE HEADQUARTERS TO ITS JENKINTOWN PA PLANT AND IS CUTTING NONESSENTIAL EXPENSES SPS SAID IT ANTICIPATES THAT THE FOURTHQUARTER CHARGE WILL PLACE IT IN VIOLATION OF CERTAIN LOANAGREEMENT COVENANTS BUT THE COMPANY SAID IT BELIEVES LENDERS WILL REACT FAVORABLY TO THE COSTCUTTING PROGRAM IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SPS CLIMBED 7 OR 1375 TO CLOSE AT 21125 IN THE 1992 FOURTH QUARTER SPS HAD A NET LOSS OF 94 MILLION OR 185 A SHARE ON SALES OF 748 MILLION THE QUARTER INCLUDED A RESTRUCTURING CHARGE OF 75 MILLION OR 147 A SHARE 9401060050 940106 LETTERS TO THE EDITOR THE 12 DAYS DECONSTRUCTED NOTE AFTER MEMBERS OF THE ANIMAL LIBERATION FRONT THREATENED TO THROW RED PAINT AT MY COMPUTER THE CALLING BIRDS FRENCH HENS AND PARTRIDGE HAVE BEEN REINTRODUCED TO THEIR NATIVE HABITAT TO AVOID FURTHER ANIMALAMERICAN ENSLAVEMENT THE REMAINING GIFT PACKAGE HAS BEEN REVISED TWO SIERRA CLUB CALENDARS PRINTED ON RECYCLED PROCESSED TREE CARCASSES AND A SPOTTED OWL ACTIVIST CHAINED TO AN OLDGROWTH PEAR TREE THE AUTHOR ACKNOWLEDGES INSPIRATION FROM THE LOS ANGELES TIMES BOOKLET GUIDELINES ON ETHNIC RACIAL SEXUAL AND OTHER IDENTIFICATION AND HENRY BEARD AND CHRISTOPHER CERF'S THE OFFICIAL POLITICALLY CORRECT DICTIONARY AND HANDBOOK 9401060049 940106 TECHNOLOGY MARS CRAFT'S FAILURE TIED TO FUEL LEAK BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MYSTERIOUS DISAPPEARANCE OF NASA'S MARS OBSERVER MOST LIKELY WAS CAUSED BY A FUELLINE LEAK THAT SENT THE SPACECRAFT SPINNING OUT OF CONTROL AN INVESTIGATION CONCLUDED WHILE THERE'S NO WAY OF KNOWING DEFINITIVELY WHAT HAPPENED TO THE ERRANT SPACECRAFT OUTSIDE INVESTIGATORS REPORTED A STRONGER POSSIBILITY EXISTS THAT IT IS FLOATING DEAD IN SPACE IN A LOOPING ORBIT AROUND THE SUN THAN THAT IT BLEW UP THE REPORT IS PROBABLY THE CLOSEST THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WILL EVER COME TO KNOWING WHAT CAUSED THE FAILURE OF ITS 1 BILLION MARS MISSION THIS SUMMER NASA PERMANENTLY LOST CONTACT WITH THE UNMANNED SPACE PROBE IN AUGUST ONLY THREE DAYS SHORT OF COMPLETING AN 11MONTH 450 MILLIONMILE JOURNEY TO THE RED PLANET INVESTIGATORS FAILED TO PINPOINT BLAME FOR THE LOSS OF THE SPACECRAFT WHICH WAS MANAGED BY NASA'S JET PROPULSION LABORATORY IN PASADENA CALIF THE SPACECRAFT WAS BUILT BY GENERAL ELECTRIC CO'S FORMER ASTRO SPACE DIVISION BOUGHT BY MARTIN MARIETTA CORP IN APRIL UNLIKE THE HUBBLE SPACE TELESCOPE IN WHICH A MANUFACTURING ERROR DISCOVERED AFTER LAUNCH WAS BLAMED FOR A FLAWED MIRROR THE MARS OBSERVER APPARENTLY DIDN'T FAIL BECAUSE OF ANY EGREGIOUS ERROR BY SUBCONTRACTORS OR NASA NONETHELESS THE REPORT IDENTIFIED DESIGN TECHNICAL AND MANAGEMENT PROBLEMS WITHIN NASA THAT COULD HAVE CONTRIBUTED TO THE LOSS OF THE SPACECRAFT LIKE HOMICIDE DETECTIVES WITHOUT A BODY TO EXAMINE THE MARS OBSERVER INVESTIGATORS WERE HAMPERED BY LACK OF ANY HARD EVIDENCE THE CRAFT'S TRANSMITTERS WERE PURPOSELY SHUT DOWN TEMPORARILY SO THAT ITS FUEL TANKS COULD BE PRESSURIZED TO PREPARE FOR DESCENT INTO MARTIAN ORBIT THE SPACECRAFT NEVER RENEWED CONTACT ESSENTIALLY IT'S IMPOSSIBLE TO PROVIDE CONCLUSIVE EVIDENCE OF A SMOKING GUN SAID TIMOTHY COFFEY RESEARCH DIRECTOR OF THE NAVAL RESEARCH LABORATORY WHO LED THE INVESTIGATION STILL AFTER EXAMINING 60 POSSIBLE SCENARIOS THE BOARD SAID THE MOST PROBABLE CULPRIT WAS A RUPTURE IN FUEL LINES DURING THE TANKPRESSURIZATION PROCESS CAUSING HELIUM GAS TO SPURT AND SEND THE SPACECRAFT ROTATING IN AN UNRECOVERABLE SPIN WITH THE SPACECRAFT'S ELECTRONICS SYSTEM TEMPORARILY SHUT DOWN THE SPACE PROBE COULDN'T CORRECT ITS POSITION OR POINT ITS ANTENNA TO MAKE CONTACT WITH EARTH THE SPINNING COULD HAVE CAUSED SOME HARDWARE SUCH AS THE ANTENNA TO BREAK LOOSE IF THE REPORT IS CORRECT AND THE MARS OBSERVER IS SPINNING OUT IN SPACE THE SPACECRAFT IS USELESS DR COFFEY SAID THE REPORT RULED OUT ONE OF NASA'S SUSPECTS THIS SUMMER SAYING IT IS UNLIKELY THAT THE CRAFT'S CENTRAL CLOCK FAILED BECAUSE OF A POSSIBLY FAULTY TRANSISTOR THE TRANSISTOR WAS MADE BY UNITRODE CORP NASA IS STILL CONSIDERING A LIST OF OPTIONS FOR REVISITING MARS TO MAKE UP CRUCIAL SCIENCE WORK THE MARS OBSERVER THE FIRST US SPACE PROBE TO THE PLANET IN 17 YEARS WAS SUPPOSED TO EXPLORE THE PLANET'S TERRAIN CLIMATE ATMOSPHERE AND MAGNETIC FIELDS 9401060048 940106 MET LIFE GOT CAUGHT OTHERS SENT SAME LETTER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL AGENTS FOR MET LIFE WEREN'T THE ONLY ONES WHO TRIED TO SELL LIFE INSURANCE TO NURSES WITHOUT TELLING THEM IT WAS LIFE INSURANCE SO DID AGENTS FOR PRUDENTIAL NEW YORK LIFE AND ALLSTATE LETTERS SENT BY AGENTS OF THE OTHER THREE COMPANIES PRUDENTIAL INSURANCE CO OF AMERICA NEW YORK LIFE INSURANCE CO AND ALLSTATE CORP ARE VIRTUAL REPRODUCTIONS OF LETTERS SENT BY METROPOLITAN LIFE INSURANCE CO AGENTS FROM THE TAMPA FLA OFFICE WHICH SPARKED INVESTIGATIONS BY INSURANCE REGULATORS THE LETTERS ARE ALL HEADED BY A VARIANT OF THE PHRASE NURSE'S RETIREMENT PLAN SINCE SEPTEMBER REGULATORS IN FLORIDA AND A DOZEN OTHER STATES HAVE BEEN INVESTIGATING WHETHER MET LIFE'S TAMPA AGENTS DUPED NURSES IN FLORIDA AND ELSEWHERE INTO BUYING LIFE INSURANCE BY CALLING IT A RETIREMENT PLAN FLORIDA'S INSURANCE DEPARTMENT IS NOW ALSO LOOKING INTO NEW YORK LIFE'S SALES LETTER NO ONE IS CERTAIN WHO FIRST DREAMED UP THE PROMOTION BUT THE LETTERS ILLUSTRATE HOW AGENTS IN ADDITION TO MIMICKING ONE ANOTHER SOMETIMES DON'T REFER TO THEIR PRODUCT AS INSURANCE EMPHASIZING INSTEAD THE SAVINGS ASPECTS OF THE PLAN FAILING TO DESCRIBE AN INSURANCE PRODUCT AS INSURANCE IS PROHIBITED BY STATE CONSUMERPROTECTION LAWS THE CONTROVERSIAL NURSES' RETIREMENT PLAN IS A TWIST ON AN INCREASINGLY POPULAR LIFEINSURANCE MARKETING PROGRAM KNOWN AS THE PRIVATE PENSION PLAN THE TERM IS SIMPLY ANOTHER NAME FOR LIFE INSURANCE PRODUCTS THAT HAVE BOTH A DEATH AND AN INVESTMENT BENEFIT IT'S JUST A HOOK SAID GLENN DAILY A NEW YORK INSURANCE CONSULTANT IT'S MARKETING PUFFERY SIMILAR PROGRAMS HAVE TARGETED BEAUTICIANS SMALLBUSINESS OWNERS AND OTHER GROUPS WHOSE EMPLOYERS DON'T PROVIDE PENSION PLANS AGENTS FOR MOST INSURERS SELL PRIVATE PENSION PLANS MOST SAY THEY ARE CAREFUL TO TELL CUSTOMERS THEY ARE SELLING INSURANCE AND ONLY OFFER IT TO PEOPLE WHO NEED BOTH LIFE INSURANCE AND SAVINGS MET CONCEDES THAT SOME OF ITS AGENTS WENT TOO FAR AND HAS ALREADY OFFERED REFUNDS TO UP TO 60000 POLICYHOLDERS NURSES AND OTHERS WHO MAY HAVE UNKNOWINGLY BOUGHT LIFE INSURANCE THE COMPANY EXPECTS TO REFUND AS MUCH AS 40 MILLION THE MET LIFE AND NEW YORK LIFE INVESTIGATIONS ARE PENDING INSURANCE DEPARTMENT OFFICIALS SAY THEY AREN'T INVESTIGATING ALLSTATE OR PRUDENTIAL ALL FOUR COMPANIES SAY ANY QUESTIONABLE SALES PRACTICES WITHIN THEIR ORGANIZATIONS AREN'T WIDESPREAD AGENTS HAVE FOUND THAT RENAMING INSURANCE AND STRESSING ITS TAX BENEFITS OVER ITS DEATH BENEFITS IS A SUCCESSFUL SALES TACTIC PEOPLE WHO DON'T WANT INSURANCE WILL BUY A PRIVATE PENSION PLAN' SAID MR DAILY IN ADDITION PEOPLE WHO WOULDN'T TALK TO A LIFE INSURANCE AGENT WILL BUY FROM A FINANCIAL ADVISER WHICH IS WHAT SOME AGENTS WHO SELL PRIVATE PENSION PLANS CALL THEMSELVES ANYTHING IS BETTER THAN CALLING ONESELF A LIFE INSURANCE AGENT IN TERMS OF PUBLIC RELATIONS SAID JAMES HUNT AN ACTUARY WITH THE NATIONAL INSURANCE CONSUMER ORGANIZATION BUT AGENTS WHO FAIL TO IDENTIFY THEMSELVES AS SUCH WHETHER IN MAILINGS OVER THE PHONE OR IN PERSON ARE BREAKING THE LAW SAID JOHN CALAGNA A SPOKESMAN WITH THE NEW YORK INSURANCE DEPARTMENT TO BE SURE LIFE INSURANCE CAN BE AN APPROPRIATE FORM OF SAVINGS BUT IT'S MOST USEFUL FOR PEOPLE WHO NEED FINANCIAL PROTECTION IN CASE OF UNTIMELY DEATH THIS IS SOMETHING PEOPLE USE ALL OVER THE INDUSTRY SAID JULIAN H GOOD JR AN INSURANCE AGENT IN NEW ORLEANS WHO LAST YEAR DELIVERED A SPEECH ON PRIVATE PENSION PLANS TO AN INDUSTRY SALES CONFERENCE IT'S APPROPRIATE IF IT FITS THE CLIENT'S SITUATION MR GOOD WHO HAS BEEN AN AGENT FOR 12 YEARS WITH VARIOUS COMPANIES INCLUDING MUTUAL BENEFIT LIFE INSURANCE CO AND MET LIFE SAYS HE IS SICKENED BY THE ABUSE OF THE CONCEPT IT TURNS MY STOMACH HE SAID THEY WERE EXPLOITING WHAT WAS A GOOD AND EFFECTIVE IDEA MET'S TAMPA OFFICE WAS RUN BY RICK URSO WHO IN 1992 EARNED 946000 SELLING LIFE INSURANCE MR URSO'S SUCCESS WAS NOTICED BY MANAGERS OF OTHER MET OFFICES WHO ASKED MR URSO TO MAKE PRESENTATIONS TO THEIR AGENTS A VIDEOTAPE OF ONE URSO PRESENTATION WAS MAILED TO MET OFFICES ACROSS THE COUNTRY MR URSO HIMSELF WAS FEATURED AS A SUCCESS STORY IN MET'S INTERNAL PUBLICATIONS BUT WHEN STORIES OF THE TAMPA OFFICE INVESTIGATION CAME TO LIGHT SEVERAL WEEKS AGO MR URSO WAS DISMISSED THROUGH HIS ATTORNEY MR URSO DENIES HE DID ANYTHING WRONG AND SAYS HIS SALES METHODS WERE COMMONPLACE AT MET LIFE MET DENIES THE CONTENTION IN THE CASE OF NEW YORK LIFE THE LETTER WAS SENT BY AN AGENT IN TAMPA STEVEN INGRAM NEW YORK LIFE SAYS MR INGRAM SENT THE LETTER WITHOUT ITS AUTHORIZATION AND ADDS THAT MAILINGS WERE HALTED BEFORE ANY SALES RESULTED MR INGRAM WHO STILL WORKS FOR NEW YORK LIFE COULDN'T BE REACHED FOR COMMENT IN RESPONSE TO THE FLORIDA INVESTIGATION NEW YORK LIFE HAS HIRED A LAW FIRM TO INVESTIGATE ITS SALES PRACTICES IN FLORIDA PRUDENTIAL SAYS THE AGENT WHO SENT ITS LETTER RONALD SCHRAM WHO WORKED IN PITTSBURGH IS NO LONGER WITH THE COMPANY AND THAT MR SCHRAM VIOLATED COMPANY RULES BY SENDING A LETTER NOT APPROVED BY THE HOME OFFICE IN NEWARK MR SCHRAM DECLINED COMMENT THE ALLSTATE LETTER WAS WRITTEN BY TAMPA AGENT JESSE HILL MR HILL WHO IS STILL EMPLOYED WITH ALLSTATE DIDN'T RETURN PHONE CALLS FOR COMMENT ALLSTATE SAID ABOUT 300 OF THE LETTERS WERE SENT OUT AND THAT MR HILL VIOLATED COMPANY RULES BY SENDING A LETTER NOT APPROVED BY HEADQUARTERS NURSES GUARANTEED RETIREMENT SAVINGS PLAN YOUR PRESENT NURSING POSITION YOU WILL NOT LOSE YOUR RETIREMENT BENEFITS METROPOLITAN SHOULD YOU BECOME DISABLED NURSE'S INDIVIDUAL RETIREMENT PLAN RETIREMENT PROGRAM WITH YOU TO HELP YOU REACH YOUR FINANCIAL GOALS MAKE YOUR DEPOSITS FOR YOU NURSES INSURED RETIREMENT PLAN PROGRAM CAN STAY WITH YOU TO HELP YOU REACH YOUR RETIREMENT GOALS BY ALLSTATE SHOULD YOU BECOME DISABLED NURSES INSURED RETIREMENT PLAN CAN STAY WITH YOU TO HELP YOU REACH YOUR RETIREMENT GOALS BY PRUDENTIAL SHOULD YOU BECOME DISABLED 9401060047 940106 TECHNOLOGY BRIEF COMPUSERVE INC TYPE FONTS DOWNLOADING ARE OPTIONS FOR SUBSCRIBERS COMPUSERVE INC COLUMBUS OHIO SAID SUBSCRIBERS TO THE ONLINE COMPUTER SERVICE CAN BUY TYPE FONTS AND DOWNLOAD THEM DIRECTLY TO THEIR COMPUTERS THE NEW ITC FONT LIBRARY PROVIDED BY FONTHAUS INC OF FAIRFIELD CONN IS AVAILABLE ON COMPUSERVE THROUGH DTP ONLINE WHICH OFFERS PRODUCTS AND SERVICES FOR DESKTOP PUBLISHING THE H&R BLOCK INC UNIT SAID THE DESKTOPPUBLISHING SERVICE LAUNCHED LAST WEEK WOULD ALSO INCLUDE CLIP ART AND PHOTOS IN THE COMING MONTHS OTHER ONLINE COMPUTER SERVICES SUCH AS AMERICA ONLINE INC ALSO OFFER FONTS AND CLIP ART TO THEIR CUSTOMERS ACCESS TO DTP ONLINE WILL COST 8 PER HOUR OR 16 PER HOUR FOR FASTER CONNECTIONS IN ADDITION TO THE BASIC MONTHLY 895 CHARGE FOR COMPUSERVE MEMBERS THE TYPE FONTS WHICH ARE NOW AVAILABLE ONLY FOR THE MACINTOSH WILL COST 29 EACH FONTS FOR WINDOWS PROGRAMS WILL SOON BE AVAILABLE THE COMPANY SAID 9401060046 940106 BUSINESS BRIEF SYNOPSYS INC COMPANY PLANS STOCK DEAL TO ACQUIRE LOGIC MODELING SYNOPSYS INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CLOSELY HELD LOGIC MODELING CORP OF BEAVERTON ORE FOR 26 MILLION SHARES OF STOCK SYNOPSIS SHARES CLOSED AT 4250 YESTERDAY GIVING THE TRANSACTION AN INDICATED VALUE OF 1105 MILLION THE TAXFREE TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTEREST SYNOPSYS BASED IN MOUNTAIN VIEW CALIF HAD 323 MILLION IN REVENUE FOR THE NINE MONTHS ENDED SEPT 30 IT DEVELOPS HIGHLEVEL DESIGN AUTOMATION SOFTWARE USED TO MAKE INTEGRATED CIRCUITS AND ELECTRONICS SYSTEMS LOGIC MODELING WITH 238 EMPLOYEES AND 1993 REVENUE OF 37 MILLION DEVELOPS SIMULATION MODELS THAT HELP ENGINEERS VERIFY THAT ELECTRONIC DESIGNS WORK 9401060045 940106 REVIEW & OUTLOOK EDITORIAL THE GUNS OF CLINTON THERE WAS AN IMPORTANT GUN CONTROL LESSON MISSED DURING PRESIDENT CLINTON'S RECENT BIRDSHOOTING TRIP TO MARYLAND'S EASTERN SHORE THE PRESIDENT USED A BORROWED BENELLI M1 SUPER 90 FIELD AUTO SHOTGUN TO BAG HIS QUARRY THAT'S A VERY HANDSOME UPSCALE ITALIAN SHOTGUN POPULAR AMONG COLLECTORS AND PERFECTLY LEGAL BUT UNDER SENATOR DIANNE FEINSTEIN'S ASSAULT WEAPONS LEGISLATION PASSED IN THE SENATE LAST YEAR THE PRESIDENT COULD HAVE FOUND HIMSELF ON THE WRONG SIDE OF THE LAW HOW BY MERELY MAKING COSMETIC CHANGES TO THE GUN FOR EXAMPLE IF THE PRESIDENT HAD USED A BENELLI ALTERED WITH A COLLAPSIBLE STOCK AND A PISTOL GRIP HE'D HAVE TRIPPED OVER TWO OF THE FEINSTEIN AMENDMENT CRITERIA THAT MAKE A PREVIOUSLY LEGAL AUTOMATIC SHOTGUN ILLEGAL A COLLAPSIBLE STOCK IS TYPICALLY A LIGHT ALLOY OR PLASTIC FRAME MUCH LIGHTER THAN THE SOLID WOODEN STOCKS TRADITIONAL WITH MOST SHOTGUNS THE COLLAPSIBLE STOCK MAKES THE GUN LIGHTER EASIER TO LUG THROUGH THE WOODS AND HELPS THE SHOOTER FOLLOW THROUGH WITH HIS SWINGING MOTION WHEN TRACKING THE FLIGHT OF SAY MR CLINTON'S BIRD ADD TO THIS A PISTOL GRIP WHICH SOME BIRD SHOOTERS BELIEVE GIVES THEM MORE CONTROL AND THE SHOTGUN IS ILLEGAL IN SHORT IF MR CLINTON'S SHOTGUN HAD THESE ACCESSORIES ADDED WHICH HAVE NOTHING TO DO WITH THE FIREPOWER OF THE SHOTGUN IT WOULD BE BANNED BUT AN UNALTERED VERSION OF THE BENELLI WHICH FIRES THE SAME SLUG AT THE SAME VELOCITY AT THE SAME RATE WOULD REMAIN LEGAL IT SHOULD ALSO BE NOTED THAT THE TERM AUTOMATIC REFERS TO THE LOADING MECHANISM NOT THE FIRING MECHANISM IN FACT MUCH GUN CONTROL LEGISLATION IS BASED ON APPEARANCE RATHER THAN FUNCTION AS DESCRIBED NEARBY BY JAMES BOVARD TAKE SENATOR FEINSTEIN'S HOME STATE OF CALIFORNIA UNDER THAT STATE'S MUCH CELEBRATED ASSAULT WEAPONS BAN THE COLT AR15 IS DEEMED ILLEGAL BUT THE RUGER MINI14 REMAINS LEGAL BOTH WEAPONS FIRE THE 556MM NATO ROUND BOTH COME STANDARD WITH A FIVEROUND CLIP BUT MAGAZINES OF UP TO 50 ROUNDS ARE READILY AND LEGALLY AVAILABLE FOR BOTH BOTH GUNS ARE SEMIAUTOMATICS WHICH SIMPLY MEANS THEY CAN BE FIRED ONLY AS FAST AS THE OPERATOR CAN PULL THE TRIGGER NOT FULLY AUTOMATIC AUTOMATIC WEAPONS OF ANY KIND HAVE BEEN ILLEGAL IN THIS COUNTRY SINCE 1934 ALSO READILY AND LEGALLY AVAILABLE FOR BOTH THE COLT AND THE RUGER ARE VARIOUS PARAMILITARY ACCESSORIES SUCH AS FLASH SUPPRESSORS FOLDING STOCKS TRIPODS BIPODS YOU NAME IT SO WITH SO MUCH IN COMMON WHY IS THE AR15 ILLEGAL AND THE MINI14 LEGAL LOOKS THE AR15 COMES WITH A PISTOL GRIP AND HAS A BLACK PLASTIC STOCK GIVING IT A MILITARY LOOK MUCH LIKE THE M16 THE RUGER ON THE OTHER HAND HAS A TRADITIONAL WOODEN STOCK THE REAL POINT HERE BEARS ON THE WAY LIBERALS TYPICALLY THINK ABOUT A PROBLEM SUCH AS VIOLENT CRIME THEY'LL TURN THEMSELVES INSIDE OUT TO GET A GUN BAN WHICH IN FACT IS LIKELY TO HAVE MINIMAL IMPACT ON THE PROBLEM IT'S SUPPOSEDLY GOING TO REMEDY BUT NO WAY WILL THEIR TORTURED POLITICS ALLOW THEM TO THEN DEVOTE THE SAME FEROCIOUS ENERGY TO TOUGHENING THE LAUGHABLE JUVENILE JUSTICE SYSTEM OR UNWRAPPING THE BUREAUCRACY AND PROCEDURALISM WITH WHICH THEY'VE STRANGLED COURTS AND CRIMINAL JUSTICE AGENCIES AS TO MR CLINTON AND HIS FELLOW SHOTGUNNERS WE WOULDN'T BE TOO SURPRISED IF THE FIRST PEOPLE ARRESTED UNDER THE FEINSTEIN PROVISIONS ARE SHOOTERS SITTING IN BLINDS IN DESOLATE SNOWY MARSHES RATHER THAN THE GUN CUSTOMIZERS RUNNING AROUND SENATOR FEINSTEIN'S BAN ON THE STREETS OF OUR CITIES 9401060044 940106 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE CHINESE YUAN'S DEVALUATION RESULTING FROM UNIFICATION OF CURRENCY EXCHANGE RATES PROMPTED HIGHER AIR FARES FOR FOREIGNERS USING THE COUNTRY'S AIRLINES CHINA'S NEW DUAL FARE SYSTEM FOR CHINESE AND FOREIGN TRAVELERS WILL HELP MAKE UP FOR REVENUES THAT WOULD BE LOST BECAUSE OF LAST SUNDAY'S DEVALUATION IN WHICH THE YUAN FELL 33 AGAINST THE DOLLAR FOR FOREIGNERS FLYING FROM BEIJING PRICES JUMPED ABOUT 50 TO 254 FOR A TICKET TO GUANGZHOU AND TO 153 TO SHANGHAI AND TO 800 FOR A BEIJINGTOKYO FLIGHT FARES FOR CHINESE TRAVELERS REMAIN UNCHANGED SEPARATE TICKET WINDOWS FOR FOREIGNERS ALSO WILL BE MAINTAINED MAJOR WESTERN HOTELS IN THE CAPITAL ALSO WERE RAISING THEIR RATES IN AN EFFORT TO OFFSET EFFECTS OF THE DEVALUATION A JAPANESE OIL REFINER PLANS TO BUILD THE COUNTRY'S FIRST SELFSERVICE GASOLINE STATIONS JAPAN ENERGY CORP EXPECTS TO INTRODUCE THE STATIONS BY MID1995 THE INDUSTRIAL DAILY NIKKEI SANGYO SHIMBUN REPORTED NOW ONLY LICENSED PEOPLE MAY HANDLE PETROLEUM PRODUCTS IN JAPAN BUT THIS RESTRICTION WILL BE EASED UNDER THE GOVERNMENT'S DEREGULATION PROGRAM OPENING THE WAY FOR SELFSERVICE THE PUBLIC HAS BEEN INCREASINGLY CRITICAL OF HIGH PRICES FOR PETROLEUM PRODUCTS AMID JAPAN'S PROLONGED RECESSION JAPAN ENERGY'S NEW STATIONS WOULD BE TWICE AS LARGE AS ITS CURRENT OUTLETS BUT REQUIRE FEWER WORKERS CHINESE RAILWAYS LAST YEAR TRANSPORTED A RECORD 156 BILLION TONS OF FREIGHT UP 28 FROM A YEAR EARLIER THE OFFICIAL CHINA DAILY SAID BUT THE INCREASE FELL FAR SHORT OF THE DEMAND FOR CARGO SPACE GENERATED BY CHINA'S 13 ECONOMIC GROWTH IN 1993 AND FREIGHT SHIPMENTS REMAINED BACKED UP FOR WEEKS AND EVEN MONTHS PASSENGER TRAFFIC ON TRAINS CLIMBED 85 TO 105 BILLION THE GOVERNMENT SAID IT SPENT 383 BILLION BUILDING RAIL LINES LAST YEAR WHEN EARNINGS ROSE 14 TO 931 BILLION FROM 1992 MOST TOURISTS FROM ABROAD SURVEYED BY BRITAIN'S TOURIST AGENCY COMPLAINED THAT LONDON IS OVERPRICED MORE THAN HALF THE VISITORS CHARACTERIZED HOTEL RATES AND STORE RESTAURANT AND THEATER PRICES AS EXPENSIVE OR VERY EXPENSIVE BUT THE FINDINGS REPRESENTED AN IMPROVEMENT FROM THE PREVIOUS YEAR PARTLY BECAUSE THE BRITISH POUND'S VALUE FELL AGAINST MAJOR FOREIGN CURRENCIES IN LATE 1992 LAST YEAR TOURISTS MOST COMMONLY USED THE SUBWAY TO GET AROUND THE CAPITAL A 68MILE UNDERGROUND EXPRESSWAY WILL BE BUILT IN CENTRAL TOKYO AIMED AT EASING TRAFFIC CONGESTION CONSTRUCTION IN THE 746 BILLION PROJECT IS TO BEGIN NEXT YEAR OFFICIALS SAID LAND PURCHASES WILL ACCOUNT FOR HALF THE COST AS PROPERTY RIGHTS EXTEND BELOW THE SURFACE A FOURTH OF THE LAND HAS BEEN ACQUIRED SO FAR THE TUNNEL WILL PASS THROUGH BUSINESS AND SHOPPING DISTRICTS IN A HEAVILY POPULATED AREA CRISSCROSSED BY UTILITY LINES RIVERS AND SUBWAYS COMPLICATING CONSTRUCTION RIOTS BROKE OUT IN YEMEN AS HUNDREDS OF RESIDENTS PROTESTED HIGH PRICES AND A SHARP DROP IN THE VALUE OF THE RIAL CURRENCY THE GOVERNMENT DEPLOYED TROOPS WHO QUELLED THE PROTESTS IN THE CAPITAL OF SANAA AND THE CITY OF TAIZZ 160 MILES TO THE SOUTH THE GOVERNMENT HAS INTRODUCED ECONOMIC REFORMS SINCE NORTH AND SOUTH YEMEN UNITED IN MAY 1990 BUT THE COUNTRY IS ONE OF THE POOREST IN THE REGION ANNUAL INFLATION IS RUNNING AT 100 AND THE RIAL HAS BEEN DROPPING SHARPLY ONE US DOLLAR BOUGHT 75 RIALS YESTERDAY COMPARED WITH 56 RIALS 10 DAYS AGO THE OFFICIAL EXCHANGE RATE IS 12 TO THE DOLLAR VIETNAM SAID IT SLASHED ITS 1993 INFLATION TO 52 FROM 175 IN 1992 THE RATE HAD SOARED AS HIGH AS 500 IN THE MID1980S WHEN HUGE BUDGET DEFICITS WERE FUNDED BY UNFETTERED PRINTING OF MONEY THE 1993 PACE WAS 4 THROUGH NOVEMBER BUT FOOD PRICES SWELLED LAST MONTH JUMPING 10 IN THE CAPITAL OF HANOI THE LATE PICKUP WAS ATTRIBUTED TO A CONSUMERSPENDING SPLURGE AHEAD OF THE LUNAR NEW YEAR FESTIVAL A MAJOR HOLIDAY ON FEB 10 IN ITS TRANSITION TO FREE MARKETS BEGUN IN LATE 1986 VIETNAM HAS REINED IN INFLATION BY STOPPING SUBSIDIES OF THE DEFICIT CONTROLLING CREDIT AND ADJUSTING INTEREST RATES TO MORE REALISTIC LEVELS SEPARATELY THE GOVERNMENT SAID FOOD PRODUCTION LAST YEAR ROSE 33 TO 25 MILLION TONS CITING ECONOMIC REFORMS UPGRADED IRRIGATION SYSTEMS AND GOOD WEATHER VIETNAM WHICH ONCE HAD FOOD DEFICITS HAS BECOME A LEADING RICE EXPORTER FARM EXPORTS TOTALED 791 MILLION IN 1993 UNDER NEW ANTINOISE LAWS IN BRITAIN AUTHORITIES MAY QUICKLY SILENCE BUSKERS IN RESPONSE TO COMPLAINTS THAT THE STREET ENTERTAINERS ARE TOO LOUD AND MAY TOW AWAY OR BREAK INTO CARS TO TURN OFF UNHEEDED ALARMS EIGHTEEN MALAYSIAN GROUPS RANGING FROM INTELLECTUALS TO BUSINESS PEOPLE AND LAWYERS FAULTED A GOVERNMENT DECISION TO LET COLLEGES AND UNIVERSITIES TEACH TECHNICAL SUBJECTS IN ENGLISH DISCONTINUED IN 1980 AS A VESTIGE OF BRITISH COLONIALISM THE GROUPS WANT INSTRUCTION TO CONTINUE IN THE MALAY LANGUAGE 9401060043 940106 POLITICS & POLICY TELECOMMUNICATIONS BILL OPEN TO CHANGE US SAYS WASHINGTON THE CLINTON ADMINISTRATION SAID THAT IT HAS GRAPPLED WITH BROAD QUESTIONS IN DRAFTING A BILL TO ELIMINATE BARRIERS TO TELECOMMUNICATIONS COMPETITION AND THAT THE ADMINISTRATION'S PLAN WILL REMAIN OPEN TO CHANGE IN A MEETING WITH TELEPHONE AND CABLE EXECUTIVES AND CONSUMER ACTIVISTS VICE PRESIDENT AL GORE AND COMMERCE SECRETARY RONALD BROWN SAID THE ADMINISTRATION IS STILL PUSHING TO FILE A BILL SOON TO FREE UP COMPETITION PARTICIPANTS SAID HOUSE LEADERS PLAN TO START HEARINGS LATER THIS MONTH ON TWO BILLS FREEING CABLE LONGDISTANCE AND BABY BELL COMPANIES TO COMPETE WITH ONE ANOTHER AND THE HOUSE ENERGY AND COMMERCE COMMITTEE HAS COMMITTED TO FINISHING ITS WORK ON TELECOMMUNICATIONS REFORM BY MARCH TO TURN TO PRESIDENT CLINTON'S HEALTH PACKAGE A TOP ADMINISTRATION OFFICIAL INSISTED THE WHITE HOUSE HADN'T FALLEN BEHIND SCHEDULE IN ITS YEARLONG EFFORT TO PROMOTE INVESTMENT IN FIBEROPTIC NETWORKS CARRYING VOICE VIDEO AND INFORMATION MR GORE HAS SCHEDULED TWO MORE MEETINGS SIMILAR TO YESTERDAY'S AND MR BROWN IS EXPECTED TO ANNOUNCE TODAY THE FORMATION OF A COMMITTEE OF INDUSTRY EXECUTIVES AND PUBLICINTEREST GROUPS TO CONTINUE ADVISING THE ADMINISTRATION 9401060042 940106 COMMODITIES OIL FUTURES SOAR IN ANTICIPATION OF GLOBAL PUSH FROM PRODUCERS TO CUT OUTPUT PROP UP PRICES BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRICES SOARED AS TRADERS ANTICIPATED A GROWING MOVEMENT BY GLOBAL OIL PRODUCERS TO PARE BACK OUTPUT IN ORDER TO PROP UP PRICES REPORTS THAT OIL MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE DISCUSSING PLANS TO MEET LATER THIS MONTH OR DURING EARLY FEBRUARY HAVE BUOYED PRICES THE GROUP WAS SCHEDULED TO MEET IN MARCH BUT DETERIORATING OIL PRICES COULD BRING THEM TOGETHER SOONER CONCERN THAT PRICES WILL REMAIN SOFT THROUGH THE FIRST QUARTER HISTORICALLY THE STRONGEST MARKETING PERIOD OF THE YEAR IS MAKING OIL MINISTERS JUMPY IN ADDITION SAID ALSHANFARI THE OIL MINISTER OF OMAN WILL CONTINUE HIS TOUR OF NONOPEC PRODUCERS IN AN EFFORT TO ELICIT PROMISES FROM THEM TO CUT BACK THEIR OIL PRODUCTION OIL PRICES WERE ALSO SUPPORTED BY REPORTS THAT KUWAIT A POWERFUL MEMBER OF OPEC WAS CONSIDERING A PLAN TO CLOSE DOWN CERTAIN OIL FIELDS IF THE COSTS TO RUN THEM EXCEEDED THE PRICE OF OIL CRUDE OIL FOR FEBRUARY DELIVERY ROSE BY 67 CENTS A BARREL TO FINISH AT 1534 THE FIRST TIME THAT OIL PRICES HAVE BREACHED 15 A BARREL SINCE EARLY DECEMBER HEATING OIL AND GASOLINE PRICES ALSO JUMPED BUT MARKET PARTICIPANTS REMAIN SKEPTICAL ABOUT WHETHER MARKET FUNDAMENTALS HAVE REALLY CHANGED ENOUGH TO SUPPORT YESTERDAY'S PRICE RALLY THE OMANI EFFORT HASN'T RESULTED IN ANY SUBSTANTIVE PROMISES TO HOLD BACK OUTPUT AND STATEMENTS FROM KUWAIT WERE SEEN BY OIL INDUSTRY EXPERTS AS NOTHING MORE THAN EMPTY PROMISES BECAUSE THE COST OF PRODUCING OIL IN THAT TINY PERSIAN GULF COUNTRY DOESN'T RUN MORE THAN 2 A BARREL THAT MARKET PARTICIPANTS PURCHASED OIL CONTRACTS ON THOSE REPORTS REFLECTS A HIGH LEVEL OF NERVOUSNESS WITHIN THE MARKET SAYS MICHAEL ROTHMAN SENIOR ENERGYFUTURES ANALYST FOR MERRILL LYNCH MR ROTHMAN AND OTHER ANALYSTS BELIEVE YESTERDAY'S RALLY MIGHT PROVE TRANSITORY AND DATA RELEASED BY THE AMERICAN PETROLEUM INSTITUTE LATE YESTERDAY WILL PLAY A MAJOR ROLE IN PRICE DIRECTION TODAY THEY SAY THE INSTITUTE REPORTED THAT US CRUDEOIL INVENTORIES FELL BY 66 MILLION BARRELS TO 3418 MILLION BARRELS PRODUCT INVENTORIES HOWEVER UNEXPECTEDLY ROSE WITH DISTILLATE OR HEATING OIL STOCKS GROWING BY 22 MILLION BARRELS TO 1447 MILLION BARRELS GASOLINE SUPPLIES GREW BY 300000 BARRELS TO 225 MILLION BARRELS REFINERY OUTPUT ALSO GREW BUT SOME ANALYSTS POINT OUT THAT THIS INCREASE MAY ULTIMATELY BE MILDLY BULLISH REFLECTING A LASTMINUTE PUSH TO PRODUCE BEFORE A NUMBER OF REFINERIES SHUT DOWN UNITS FOR SEASONAL MAINTENANCE FOR INSTANCE AFTER TRADING YESTERDAY THE US UNIT OF BRITISH PETROLEUM BASED IN CLEVELAND REPORTED THAT ITS HUGE REFINERY IN LOUISIANA WOULD BE SHUT DOWN DURING FEBRUARY FOR 42 DAYS FOR MAINTENANCE PURPOSES IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS FUTURES PRICES FELL FOLLOWING THE LEAD OF SILVER WHOSE PRICE WAS SWAMPED BY PROFITTAKING AT NEW YORK'S COMMODITY EXCHANGE SILVER FOR MARCH DELIVERY WAS DOWN 145 CENTS TO 5085 AN OUNCE WHILE THE PRICE OF THE FEBRUARY GOLD FUTURES CONTRACT FELL 3 TO 39210 AN OUNCE SOME ANALYSTS EXPRESSED SURPRISE THAT PRECIOUSMETALS PRICES WERE FALLING AS CRUDE OIL PRICES ROSE GENERALLY CRUDE AND METALS PRICES MOVE IN TANDEM BERNARD SAVAIKO SENIOR ANALYST FOR PAINEWEBBER INC THEORIZED THAT ONE REASON FOR THE CHANGE MAY BE THE TRADING ACTIVITY OF MIDDLE EASTERN INVESTOR SYNDICATES MANY MIDDLE EASTERN BUYERS HAVE BOUGHT SILVER AS A HEDGE AGAINST POSSIBLE DEVALUATION OF THEIR CURRENCY THE RIYAL WHICH MIGHT OCCUR IF OIL PRICES STAY DOWN MR SAVAIKO SAID BUT WITH OIL PRICES RISING THAT COULD STAVE OFF A DEVALUATION OF THE CURRENCY AND EASING OF THE DEVALUATION FEARS COULD PROMPT PROFITTAKING IN THE SILVER MARKET OTHER BIG PLAYERS INCLUDING COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY ALSO HELPED TO DRIVE METALS PRICES LOWER YESTERDAY BY SELLING AGGRESSIVELY ANALYSTS SAID GRAINS THE WHEAT FUTURES CONTRACT FOR MARCH DELIVERY AT THE CHICAGO BOARD OF TRADE ROSE BECAUSE THE AGRICULTURE DEPARTMENT CONFIRMED CHINA BOUGHT 299 MILLION BUSHELS OF SUBSIDIZED US WHEAT THE MARCH CONTRACT ROSE 475 CENTS A BUSHEL TO SETTLE AT A LIFEOFCONTRACT HIGH OF 3855 A BUSHEL GRAIN TRADERS SAID YESTERDAY THAT CHINA IS INTERESTED IN BUYING AN ADDITIONAL 105 MILLION BUSHELS WHEAT PRICES HAD CLIMBED EARLIER THIS WEEK ON SPECULATION CHINA WOULD BUY A TOTAL OF 404 MILLION BUSHELS OF US WHEAT PRICES OF CORN FUTURES PRICES SETTLED MIXED AS TRADERS EVENED THEIR POSITIONS IN ANTICIPATION OF A HARVEST REPORT DUE WEDNESDAY FROM THE US AGRICULTURE DEPARTMENT MOST TRADERS EXPECT THE GOVERNMENT TO LOWER ITS TWOMONTHOLD ESTIMATE OF THE 1993 CORN HARVEST THE DEPARTMENT SAID IN NOVEMBER THAT EXCESSIVE RAIN AND FLOODING PROBABLY SHRUNK THE US CORN HARVEST BY 31 TO 65 BILLION BUSHELS FROM THE RECORD 948 BILLION BUSHELS HARVESTED IN 1992 TRADERS SAID YESTERDAY THAT SPARKS COS A WIDELY FOLLOWED MEMPHIS TENN FORECASTING CONCERN TOLD CLIENTS THAT CORN FARMERS HARVESTED 632 BILLION BUSHELS 9401060041 940106 BUSINESS BRIEF BALL CORP COMPANY LOWERS OUTLOOK FOR 4TH PERIOD PLANT TO SHUT BALL CORP SAID ITS EARNINGS FOR THE FOURTH QUARTER ARE EXPECTED TO BE WELL BELOW CURRENT ANALYSTS' MEAN ESTIMATES OF 26 CENTS A SHARE SEPARATELY THE MUNCIE IND MAKER OF METAL AND GLASS CONTAINERS SAID THAT ON APRIL 6 IT WILL CLOSE ITS ASHEVILLE NC GLASSCONTAINER PLANT CUTTING 300 JOBS THE COMPANY SAID THE LOWER FOURTHQUARTER RESULTS ARE LIKELY BECAUSE OF SOFT SALES OF FOOD CANS AND GLASS CONTAINERS AND DOWNTIME TAKEN IN ITS GLASS OPERATIONS TO REDUCE EXCESS INVENTORIES IN THE 1992 FOURTH QUARTER BALL EARNED 116 MILLION OR 39 CENTS A SHARE BALL SAID IT WILL TAKE A CHARGE ASSOCIATED WITH THE PLANT CLOSING BUT THE AMOUNT HASN'T BEEN DETERMINED YET THE COMPANY ALSO SAID IT IS PLANNING TO CLOSE ITS AUGUSTA WIS FOOD CAN PLANT IN MID1994 AS A PART OF THE CONTINUING CONSOLIDATION OF HEEKIN CAN INTO BALL'S NORTH AMERICAN METAL PACKAGING ORGANIZATION 9401060040 940106 BUSINESS BRIEF PS GROUP INC FIRM ISN'T ABLE TO COMPLETE SALE OF SUBSIDIARY TO GROUP PS GROUP INC SAID IT WASN'T ABLE TO REACH A DEFINITIVE AGREEMENT TO SELL AN 85 STAKE IN USTRAVEL SYSTEMS FOR 46 MILLION TO A GROUP CONTROLLED BY THE PRITZKER FAMILY WHICH ALREADY OWNS 15 OF THE TRAVELMANAGEMENT UNIT THE SAN DIEGO COMPANY HAD INTENDED TO USE PROCEEDS OF THE TRANSACTION WHICH WAS ANNOUNCED LAST NOVEMBER TO PAY DOWN DEBT NOW IT SAYS IT IS PURSUING THE ISSUANCE OF ABOUT 14 MILLION DEBT ON A BOEING 737300 LEASED TO A MAJOR AIRLINE PROCEEDS FROM THIS FINANCING PLUS A COMBINATION OF DEBT ON ITS MAJOR TEXAS OIL PROPERTY SALE OF MARKETABLE SECURITIES AND INTERNAL CASH FLOW ARE EXPECTED TO GENERATE SUFFICIENT FUNDS TO REPAY THE COMPANY'S 23 MILLION IN BANK BORROWINGS THE COMPANY SAID PS GROUP ALSO SAID IT IS IN DISCUSSIONS WITH SEVERAL BANKS ABOUT A NEW CREDIT FACILITY TO PROVIDE COLLATERAL FOR CERTAIN LETTERS OF CREDIT 9401060039 940106 BUSINESS BRIEF ADOBE SYSTEMS INC NET INCOME ALMOST DOUBLED FOR THE FISCAL 4TH QUARTER ADOBE SYSTEMS INC BENEFITING FROM SALES OF NEW SOFTWARE PRODUCTS SAID FISCAL FOURTHQUARTER NET INCOME ALMOST DOUBLED DESPITE SOFT PRICING IN ITS FLAGSHIP ADOBE POSTSCRIPT SOFTWARE NET FOR THE QUARTER ENDED NOV 26 WAS 158 MILLION OR 34 CENTS A SHARE AFTER A 1 MILLION CHARGE FOR THE WRITE OFF OF AN INVESTMENT REVENUE TOTALED 865 MILLION IN THE YEAREARLIER QUARTER THE SOFTWARE CONCERN HAD NET OF 84 MILLION OR 18 CENTS A SHARE AFTER A 6 MILLION CHARGE FOR THE WRITE OFF OF A LIMITED PARTNERSHIP INTEREST REVENUE WAS 707 MILLION FOR ALL OF FISCAL 1993 ADOBE'S NET WAS 57 MILLION OR 122 A SHARE AFTER A GAIN OF 39 MILLION OR FIVE CENTS A SHARE FROM THE SALE OF COMMON STOCK REVENUE TOTALED 3134 MILLION IN FISCAL 1992 NET WAS 436 MILLION OR 94 CENTS A SHARE AFTER CHARGES TOTALING 123 MILLION OR 16 CENTS A SHARE FROM A WRITE OFF OF INCOMPLETE RESEARCH AND DEVELOPMENT PROJECTS ASSOCIATED WITH TWO ACQUISITIONS AND FROM A WRITE OFF OF A REALESTATE PARTNERSHIP REVENUE TOTALED 2659 MILLION 9401060038 940106 BUSINESS BRIEF CALIFORNIA ENERGY CO TWO JOINT VENTURES ARE SET TO PROMOTE GROWTH ABROAD CALIFORNIA ENERGY CO OMAHA NEB SAID IT SIGNED TWO JOINTVENTURE AGREEMENTS TO HELP ITS PUSH TO DEVELOP INTERNATIONAL ENERGY PROJECTS IN ONE AGREEMENT THE ENERGY CONCERN FORMED A VENTURE WITH DISTRAL SA PART OF THE LANCASTER DISTRAL GROUP A BOGOTA COLUMBIA ENGINEERING AND MANUFACTURING CONCERN THE COMPANIES WILL DEVELOP POWER PROJECTS IN CENTRAL AND SOUTH AMERICA AS WELL AS IN THE CARIBBEAN THE SECOND AGREEMENT EXPANDS A LINK WITH CLOSELY HELD MINING AND CONSTRUCTION CONCERN PETER KIEWIT SONS' INC WHICH OWNS 35 OF CALIFORNIA ENERGY THE COMPANIES WILL DEVELOP POWER PROJECTS IN THE PHILIPPINES INDONESIA AND COUNTRIES OUTSIDE THE REGION COVERED BY THE DISTRAL VENTURE BOTH AGREEMENTS HAVE INITIAL THREEYEAR TERMS CALLING FOR EQUAL SHARING OF DEVELOPMENT EXPENSES CALIFORNIA ENERGY WILL HOLD A MINIMUM 50 OF THE EQUITY IN THE PROJECTS AND WILL ACT AS OPERATOR 9401060037 940106 BUSINESS BRIEF INTELLICALL INC CONCERN EXPECTS TO REPORT LOSS FOR QUARTER AND YEAR INTELLICALL INC SAYING TWO FOREIGN ORDERS FOR ITS PAY PHONES HAVE BEEN STUCK IN A TESTING AND CERTIFICATION STAGE ANNOUNCED IT WOULD REPORT LOSSES FOR THE FOURTH QUARTER AND ALL OF 1993 THE NEWS SENT THE DALLAS COMPANY'S STOCK SLIDING 50 CENTS OR 55 TO 8625 IN LATE NEW YORK STOCK EXCHANGE TRADING INTELLICALL SAID THE DELAYS KEPT IT FROM SHIPPING PHONES TO INDONESIA AND ARGENTINA IN THE FOURTH QUARTER AS PLANNED A COMPANY SPOKESMAN SAID INTELLICALL HAS ORDERS TOTALING 23 MILLION TO DELIVER 21000 PHONES AND RELATED EQUIPMENT TO THE TWO COUNTRIES THE COMPANY SAID IT COULDN'T PREDICT THE TIMING OF THE SHIPMENTS IT ALSO SAID THE QUALITY OF ITS PRODUCTS WASN'T TO BLAME FOR THE DELAYS IN THE FOURTH QUARTER OF 1992 INTELLICALL HAD A LOSS OF 22 MILLION OR 327 A SHARE ON REVENUE OF 288 MILLION THE RESULTS INCLUDED PRETAX CHARGES TOTALING 22 MILLION FOR ALL OF 1992 THE COMPANY HAD A LOSS OF 249 MILLION OR 371 A SHARE ON REVENUE OF 1545 MILLION 9401060036 940106 FOREIGN EXCHANGE DOLLAR ENDS LITTLE CHANGED AGAINST YEN DESPITE SPEECH ABOUT TRADE BY BENTSEN BY XANDER MELLISH AND GARY ROSENBERGER SPECIAL TO THE WALL STREET JOURNAL NEW YORK A MUCHAWAITED SPEECH BY US TREASURY SECRETARY LLOYD BENTSEN ON USJAPAN TRADE DID NOTHING FOR THE DOLLAR WHICH ENDED LITTLE CHANGED AGAINST THE YEN THE MARK MEANWHILE ENDED LOWER WITH MARKET OPINIONS MIXED ABOUT WHETHER TODAY'S BIWEEKLY BUNDESBANK POLICY MEETING WOULD PRODUCE A CUT IN GERMANY'S KEY INTEREST RATES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17395 MARKS UP FROM 17355 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11290 YEN UP A BIT FROM 11270 YEN STERLING WAS TRADING AT 14872 UP FROM 14865 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 11272 YEN AND AT 17413 MARKS MARKETS WERE GEARED UP FOR MR BENTSEN'S SPEECH FROM THE TIME ASIAN TRADING OPENED ANTICIPATING SOME REPLY TO THE DOLLAR'S RECENT APPRECIATION AGAINST THE YEN THE US CURRENCY HIT AN EIGHTMONTH HIGH OF 11355 YEN EARLY WEDNESDAY AND A JAPANESE NEWS SERVICE QUOTED AN UNNAMED JAPANESE OFFICIAL WISHING THE DOLLAR WOULD REACH 115 YEN SOON WHEN MR BENTSEN TOOK THE PODIUM IN WASHINGTON YESTERDAY HE WARNED JAPAN NOT TO PEG ITS ECONOMIC RECOVERY PLANS TO A DEPRECIATION OF ITS CURRENCY ALLOWING THE YEN TO SLIDE IS NOT AN ACCEPTABLE WAY OUT OF RECESSION FOR JAPAN MR BENTSEN SAID ADDING THAT THE US STILL EXPECTS JAPAN TO REDUCE ITS TRADE SURPLUS AND OPEN ITS MARKETS TO FOREIGN GOODS TRADERS SAID MR BENTSEN'S WORDS HAD LESS IMPACT THAN THEY MIGHT HAVE HAD A YEAR AGO WHEN HIS COMMENTS SHOOK THE DOLLAR TO RECORD LOWS THE DIFFERENCE THEY SAID IS IN PART DUE TO THE STRENGTH OF THE US RECOVERY AND THE DEPTH OF JAPAN'S RECESSION HAS LEFT THE MARKET SO INTRACTABLY BULLISH ON THE DOLLAR AGAINST THE YEN THE DOLLAR DIPPED TO ITS INTRADAY LOW OF 11235 YEN IN THE MOMENTS AFTER HEADLINES FROM MR BENTSEN'S SPEECH WERE RELEASED BUT IT WAS BACK AT ITS PRESPEECH LEVELS OF AROUND 11280 YEN WITHIN AN HOUR TRADERS SAID THEY SEE THE DOLLAR TRYING TO CRACK 11350 YEN AGAIN TODAY WITH A RUN AT 115 YEN POSSIBLE WITHIN A WEEK BECAUSE THE FUNDAMENTALS WEIGH IN FAVOR OF THE DOLLAR IT WILL TAKE MORE THAN JAWBONING TO GET THE DOLLAR DOWN SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER FOR THE LONG TERM CREDIT BANK OF JAPAN IN NEW YORK EARLY LAST YEAR MR BENTSEN AND OTHER US OFFICIALS EXPRESSED A PREFERENCE FOR A WEAKER DOLLAR AS A MEANS TO RAISE THE PRICE OF JAPANESE GOODS OVERSEAS AND THUS CUT JAPAN'S TRADE SURPLUS WITH THE US THOSE STATEMENTS HELPED DRAG THE DOLLAR FROM 12025 YEN ON FEB 17 WHEN MR BENTSEN FIRST BROACHED THE SUBJECT TO A POSTWAR LOW OF 10040 YEN ON AUG 17 MR BENTSEN'S COMMENTS YESTERDAY DID HOWEVER CAUSE A BRIEF DOLLAR SELLOFF THAT TRIPPED TECHNICAL LEVELS FOR STERLING SENDING IT ON A SUDDEN JUMP TO 14898 FROM 14825 AND TO 25911 MARKS FROM 25776 MARKS WITHIN A COUPLE OF HOURS THE POUND HAS BEEN A MARKET FAVORITE LATELY ON A GENERAL SENSE THAT BRITISH FUNDAMENTALS ARE STRONG AND INTEREST RATES THERE ARE SOLID FOR THE TIME BEING THE POUND ALSO BENEFITED FROM A GENERAL MALAISE IN THE MARK WHICH DECLINED AGAINST THE DOLLAR AND ALMOST ALL OF ITS EUROPEAN COUNTERPARTS VAGUE RUMORS OF INSTABILITY IN RUSSIA TO WHICH GERMAN BANKS HAVE MAJOR LOAN EXPOSURE WEIGHED ON THE CURRENCY AS DID CONCERNS THAT TODAY'S BUNDESBANK COUNCIL MEETING MAY PRODUCE CUTS IN BENCHMARK INTEREST RATES 9401060035 940106 INTERNATIONAL BRIEF AEROSPATIALE SA FRENCH COMPANY EXPECTS TO BE OUT OF RED BY 1995 DESPITE AN APALLING YEAR FOR CIVIL AIRCRAFT SALES IN LAST YEAR FRANCE'S AEROSPATIALE SA SAID IT MANAGED TO REDUCE ITS LOSSES SUBSTANTIALLY IN 1993 AND PREDICTED IT WILL BE OUT OF THE RED BY 1995 AT THE LATEST THAT IS A MORE PESSIMISTIC FORECAST THAN AEROSPATIALE CHAIRMAN LOUIS GALLOIS'S AFFIRMATION AT THE PARIS AIR SHOW IN MID1993 THAT HIS GROUP WOULD BREAK EVEN IN 1994 STATECONTROLLED AEROSPATIALE IS STRUGGLING TO RETURN TO PROFITABILITY IN PREPARATION FOR PRIVATIZATION AFTER 1995 AT A NEWS CONFERENCE ON WEDNESDAY MR GALLOIS CAUTIONED THAT A REAL RECOVERY IN THE AEROSPACE SECTOR IS UNLIKELY UNTIL 1996 OR EVEN 1997 NOTING THAT AROUND THE WORLD THERE ARE ABOUT 500 COMMERCIAL AIRCRAFT SITTING WAITING FOR CUSTOMERS OR APPROXIMATELY THE EQUIVALENT OF ONE YEAR'S PRODUCTION BY THE AVIATION INDUSTRY FOR THE FIRST SIX MONTHS OF 1993 AEROSPATIALE REPORTED A NET LOSS OF 870 MILLION FRENCH FRANCS 1474 MILLION PARTLY REFLECTING RESTRUCTURING COSTS RELATED TO STAFF REDUCTIONS 9401060034 940106 BUSINESS BRIEF CINCINNATI MICROWAVE INC COMPANY EXPECTS TO POST STRONG 4THQUARTER PROFIT CINCINNATI MICROWAVE INC EXPECTS TO POST STRONG FOURTHQUARTER PROFIT AND A NARROWER 1993 LOSS JACQUES ROBINSON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID FOR THE FOURTH QUARTER CINCINNATI MICROWAVE EXPECTS TO REPORT NET INCOME OF 26 MILLION TO 29 MILLION OR 23 CENTS TO 26 CENTS A SHARE COMPARED WITH A LOSS OF 58 MILLION OR 53 CENTS A SHARE A YEAR EARLIER MR ROBINSON SAID FOURTHQUARTER RESULTS INCLUDED A ONETIME GAIN OF ABOUT SIX CENTS A SHARE FROM THE SALE OF LAND HE SAID FOURTHQUARTER SALES ROSE 11 TO 229 MILLION AN INCREASE FUELED BY DEMAND FOR THE COMPANY'S PASSPORT AND ESCORT RADAR DETECTION DEVICES MR ROBINSON SAID CINCINNATI MICROWAVE PRODUCES CORDLESS TELEPHONES AND WIRELESS MODEMS IN ADDITION TO RADAR DETECTION DEVICES CITING A STRONGER THIRD AND FOURTH QUARTER CINCINNATI MICROWAVE EXPECTS TO REPORT THAT ITS 1993 LOSS NARROWED TO 28 MILLION TO 3 MILLION OR 26 CENTS TO 28 CENTS A SHARE FROM A 1992 LOSS OF 64 MILLION OR 59 CENTS A SHARE SALES FOR THE YEAR ROSE ABOUT 14 TO 585 MILLION FROM 513 MILLION 9401060033 940106 GOLDEN WEST PLANS TO DISCUSS A BID FOR CALIFORNIA FED BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN WEST FINANCIAL CORP WILL MEET TODAY WITH THE 10 LARGEST SHAREHOLDERS OF CALIFORNIA FEDERAL BANK TO DISCUSS A TENDER OFFER FOR THE TROUBLED THRIFT EXPECTED TO BE VALUED AT 615 MILLION PEOPLE CLOSE TO THE TALKS SAID THE MEETING TO BE HELD IN NEW YORK COMES AFTER LOS ANGELESBASED CALFED REJECTED RECENT OVERTURES FROM GOLDEN WEST BASED IN OAKLAND CALIF THE 10 SHAREHOLDERS PRIMARILY INSTITUTIONAL INVESTORS HELD MORE THAN HALF OF CALFED'S COMMON STOCK AS OF TWO MONTHS AGO GOLDEN WEST IS EXPECTED TO BID ABOUT 21 A SHARE FOR CALFED'S 25 MILLION COMMON SHARES OUTSTANDING OR 525 MILLION WHICH IS ROUGHLY CALFED'S BOOK VALUE PLUS 90 MILLION FOR CALFED'S PREFERRED STOCK SHARES OF CALFED WHICH CLOSED YESTERDAY AT 14875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING HAVE JUMPED 32 SINCE EARLY NOVEMBER WHEN NEWS OF A POSSIBLE OFFER BEGAN TO SURFACE EDWARD G HARSHFIELD CALFED'S PRESIDENT AND CHIEF EXECUTIVE SAID HE LEARNED ABOUT THE POSSIBILITY OF A GOLDEN WEST TENDER OFFER LATE YESTERDAY HE SAID GOLDEN WEST CHAIRMAN HERBERT M SANDLER APPROACHED HIM IN NOVEMBER TO TALK ABOUT AN OFFER FOR CALFED BUT IN MR HARSHFIELD'S VIEW INDICATED HE WOULDN'T PAY FULL VALUE FOR THE CALFED FRANCHISE I TOLD HIM IT WASN'T APPROPRIATE SAID MR HARSHFIELD WHO WAS NAMED CEO IN OCTOBER AFTER THE BOARD OUSTED THENCHAIRMAN JERRY ST DENNIS AND CEO WILLIAM CALLENDER MR SANDLER AND HIS WIFE MARION WHO IS GOLDEN WEST'S COCHIEF EXECUTIVE OFFICER ARE CREDITED WITH STEERING THE THRIFT SAFELY THROUGH THE SAVINGSANDLOAN CRISIS OF THE 1980S THEY DIDN'T RETURN A PHONE CALL LATE YESTERDAY SEEKING COMMENT AFTER MR SANDLER'S VISIT CALFED RETAINED SMITH BARNEY SHEARSON TO DEFINE A STRATEGY THE COMPANY THEN DECIDED ON A HOLD AND FIX STRATEGY WHICH IT ANNOUNCED YESTERDAY AFTERNOON IT PLANS TO SELL ITS SOUTHEAST DIVISION WHICH INCLUDES 43 BRANCHES WITH TOTAL ASSETS OF 4 BILLION AND TO RAISE 200 MILLION TO 300 MILLION IN NEW CAPITAL BY ISSUING AND SELLING PREFERRED STOCK AND THROUGH A RIGHTS OFFERING MR HARSHFIELD WOULDN'T COMMENT ON CALFED'S RESPONSE TO GOLDEN WEST'S OVERTURES I DON'T KNOW WHAT THEY'RE GOING TO DO AND I DON'T WHAT THE RESPONSE IS GOING TO BE FOR ME HE SAID 9401060032 940106 BUSINESS BRIEF STRUCTURAL DYNAMICS RESEARCH CORP FOURTHQUARTER EARNINGS SEEN TO BE BELOW ESTIMATES STRUCTURAL DYNAMICS RESEARCH CORP SAID IT EXPECTS TO REPORT EARNINGS FOR THE FOURTH QUARTER ENDED DEC 31 TO BE IN THE RANGE OF 14 CENTS TO 15 CENTS A SHARE WHICH IS BELOW ANALYSTS' ESTIMATES OF ABOUT 19 CENTS A SHARE HOWEVER THE COMPANY IN MILFORD OHIO SAID IT EXPECTS TOTAL REVENUE FOR THE QUARTER TO BE ABOUT 54 MILLION A RECORD HIGH FOR THE SOFTWARE MAKER IN THE YEARAGO FOURTH QUARTER STRUCTURAL DYNAMICS EARNED 19 MILLION OR SEVEN CENTS A SHARE ON REVENUE OF 455 MILLION STRUCTURAL DYNAMICS SAID IT EXPECTS TO REPORT RESULTS FOR THE QUARTER ON OR ABOUT JAN 18 THE COMPANY SAID THAT FOR THE QUARTER REVENUE OF ITS SOFTWARE DIVISION JUMPED ABOUT 23 FROM A YEAR AGO TO AN ESTIMATED 49 MILLION THE COMPANY SUPPLIES MECHANICAL DESIGN AUTOMATION SOFTWARE AND ENGINEERING SERVICES USED BY MANUFACTURERS FOR THE DESIGN ANALYSIS TESTING AND MANUFACTURING OF MECHANICAL PRODUCTS 9401060031 940106 MARKETING & MEDIA ADVERTISING SENDING ADS BY FAX IS GROWING DESPITE USUALLY VIOLATING THE LAW BY KEVIN GOLDMAN LAST SUMMER KATE MCKEOWN'S FAX MACHINE IN PERRYOPOLIS PA HUMMED ALONG AT A FEVERISH PITCH HER COMPANY COLD WAR'S OVER GOT ITS HANDS ON ABOUT 40 BEAUTIFULLY TAILORED OFFICER'S GREATCOATS PREVIOUSLY RESERVED FOR THE UPPER ECHELONS OF THE RED ARMY IN RUSSIA TO GET THE WORD OUT MS MCKEOWN FAXED ADS TO ABOUT 1000 COMPANY EXECUTIVES IN COLD CLIMATES SHE AND A GROWING NUMBER OF ENTREPRENEURS HAVE DISCOVERED THE VALUE OF FACSIMILE MACHINES AS A DIRECTMARKETING TOOL THERE'S JUST ONE HITCH IT IS GENERALLY AGAINST THE LAW ACCORDING TO THE TELEPHONE CONSUMERS PROTECTION ACT OF 1991 IT IS ILLEGAL TO TRANSMIT ADS BY FAX UNLESS THE SENDER HAS THE PERMISSION OF THE RECIPIENT THE LAW IS ROUTINELY IGNORED BUT AN ATTORNEY IN PORTLAND ORE CHARLES HINKLE IS TRYING TO HAVE IT OVERTURNED LAST MONTH A FEDERAL MAGISTRATE UPHELD THE LAW AND MR HINKLE APPEALED THE APPEAL IS CURRENTLY BEFORE A DISTRICT JUDGE IN OREGON AND MR HINKLE EXPECTS A RULING WITHIN A MONTH THE RULING BY THE MAGISTRATE MUST BE REVIEWED BY A DISTRICT JUDGE BEFORE IT BECOMES FINAL OPPONENTS OF THE LAW SAY ADVERTISING BY FAX IS A QUICK AND EFFECTIVE WAY TO GET SOMEONE'S ATTENTION SENDING A FAX IS LESS EXPENSIVE THAN MAILING A LETTER THEY SAY AND IT IS HARMLESS IF THE RECEIVER ISN'T INTERESTED HE CAN SIMPLY TOSS THE FAX IN THE TRASH PEOPLE SHOULD BE FREE TO SEND ANY TYPE OF FAX MESSAGE THEY WANT SAYS MR HINKLE WHO IS REPRESENTING FIVE PLAINTIFFS CHALLENGING THE BAN ON FAX ADVERTISING BUT CRITICS COMPLAIN THAT AN UNSOLICITED FAX IS A NUISANCE TO THE RECEIVER TIES UP FAX MACHINES DELAYING IMPORTANT MESSAGES FROM GETTING THROUGH AND COSTS THE RECIPIENT MONEY IN OFFICE SUPPLIES SUCH AS FAX PAPER AND TONER THE CENTER FOR THE STUDY OF COMMERCIALISM IN WASHINGTON DC IS CONSIDERING FILING A SUIT AGAINST A JUNK FAXER SAYS KAREN BROWN ITS RESEARCH DIRECTOR ALTHOUGH THE ORGANIZATION HASN'T DECIDED ON A TARGET FOR THE POTENTIAL LEGAL ACTION YET OF COURSE MAJOR ADVERTISERS SUCH AS PROCTER & GAMBLE OR COCACOLA AREN'T ABOUT TO FAX ADS TO CONSUMERS INSTEAD FAX ADS ARE USED PRIMARILY BY SERVICE BUSINESSES INCLUDING SOME TRAVEL AGENCIES AND HOTELS THERE ARE ABOUT 18 MILLION FAX MACHINES ACCORDING TO DON MCGRATH PRESIDENT OF NATIONAL FAXLIST WHICH COLLECTS AND SELLS FAX TELEPHONE NUMBERS TO COMPANIES INTERESTED IN SOLICITING INDIVIDUALS VIA THE FAX MACHINES NATIONAL FAXLIST HAS A DATABASE OF ABOUT ONE MILLION BUSINESSES AROUND THE COUNTRY A FAX AD WORKS BECAUSE IT HAS A SENSE OF URGENCY AND ISN'T COVERED BY AN ENVELOPE MR MCGRATH SAYS YOU HAVE TO READ IT IN ORDER TO KNOW IF YOU WANT TO THROW IT OUT JIM SMATHERS EXECUTIVE VICE PRESIDENT OF UNITED ENERGY ASSOCIATES RECENTLY SENT FAXES TO 1200 MACHINES IN THE MIDWEST AND 1200 MACHINES IN THE SOUTHEAST ADVERTISING A NEW PRODUCT TO MAKE EXIT SIGN BULBS BURN LONGER MR SMATHERS SAYS HE HAD A 10 RESPONSE RATE HIGHER THAN IF HE HAD SENT THE SAME AD THROUGH THE MAIL I GUESS WE DIDN'T OFFEND ANYBODY HE SAYS BECAUSE NO ONE TOLD US NOT TO DO IT AGAIN BUT PEOPLE INVOLVED WITH FAX ADVERTISING BELIEVE SOME DEGREE OF FORMAL REGULATION IS IN ORDER MR MCGRATH FOR INSTANCE SAYS COMMONSENSE RULES SHOULD PREVAIL SUCH AS ASKING WHETHER ADDITIONAL FAXES ARE WELCOME AFTER THE INITIAL MISSIVE IS SENT EVEN MR SMATHERS BELIEVES ADS SHOULD BE FAXED ONLY TO PEOPLE WHO GIVE THEIR PERMISSION EVEN THOUGH HIS ADS WERE SENT WITHOUT PRIOR APPROVAL I DON'T WANT TO COME INTO MY OFFICE AND FIND MY FAX BASKET FILLED WITH ADS MR SMATHERS SAYS JAMES F LOCK WHO OPERATES A TRAVEL AGENCY IN SPENCER MASS SAYS THAT OUT OF 500 FAXES HE RECEIVED ONLY EIGHT RESPONSES THAT TOLD HIM NOT TO SEND MORE ADS BUT HE NOTES THAT HE SENDS HIS FAXES AFTER NORMAL BUSINESS HOURS TO AVOID ANY DISRUPTIONS THOUGH NOT AFTER 10 PM BECAUSE THE FAX MAY BE IN SOMEONE'S HOUSE MS MCKEOWN THE ENTREPRENEUR WITH THE RED ARMY COATS WITH BUTTONS WITH THE HAMMER AND SICKLE EMBLAZONED ON A STAR EVEN APOLOGIZED IN HER FAX AD I ASK YOU TO FORGIVE THE UNSOLICITED FAX THE FAX LETTER READS IF YOU'D LIKE REPARATION FOR OUR UNINVITED USE OF YOUR FAX CALL OR FAX ME AND I'LL SEND YOU AT MY EXPENSE A SOVIET LENIN ENAMEL PIN MS MCKEOWN IS A BELIEVER IN ADVERTISING THROUGH FAXES OF THE 40 COATS SHE SAYS SHE SOLD 12 FROM RESPONSES TO THE FAXES D'ARCY MASIUS BENTON & BOWLES SAID IT REORGANIZED ITS TWO HISPANIC AD AGENCIES IN THE US AND EIGHT LATIN AMERICAN AGENCIES INTO A SINGLE NETWORK CAPABLE OF CREATING PANAMERICAN AD CAMPAIGNS TARGETING SPANISHSPEAKING CONSUMERS THE NEW NETWORK CALLED DMB&B AMERICAS INCLUDES SOSA BROMLEY AGUILAR & ASSOCIATES OF SAN ANTONIO AND NOBLE & ASSOCIADOS OF IRVINE CALIF AS WELL AS DMB&B OFFICES IN EIGHT OTHER COUNTRIES CLIENTS INCLUDE COCACOLA CO WHICH AT PRESENT RELIES ON SOSA BROMLEY FOR HISPANIC CAMPAIGNS IN THE US LIONEL SOSA CHAIRMAN AND CHIEF EXECUTIVE OF SOSA BROMLEY WAS NAMED CHAIRMAN OF THE NEW NETWORK KEN LAMBERT A DMB&B EXECUTIVE VICE PRESIDENT IN MEXICO WAS NAMED MANAGING DIRECTOR MR SOSA SAID THE AGENCY ACCELERATED PLANS FOR THE NETWORK AFTER THE NORTH AMERICAN FREE TRADE AGREEMENT PASSED ANTICIPATING THAT PANAMERICAN CAMPAIGNS WILL BE IN GREATER DEMAND WHEN CONSUMER GOODS FLOW FREELY BETWEEN THE US AND MEXICO WE BELIEVE AN AD PRODUCED FOR THE US HISPANIC MARKET CAN WORK AS WELL FOR CHILE OR ARGENTINA MR SOSA SAID NOTING THAT MOST OF THE US SHOPS' HISPANIC ADS ARE IN SPANISH SEPARATELY ANOTHER EXECUTIVE OVERSEEING DMB&B'S LATIN AMERICAN ADVERTISING GEORGE A BURNETT IS LEAVING THE AGENCY MR BURNETT SENIOR VICE PRESIDENT IN CHARGE OF DMB&B'S LATIN AMERICAN REGION WAS NAMED GENERAL MANAGER FOR MARKETING COMMUNICATIONS AT AMERICAN TELEPHONE & TELEGRAPH REPORTING TO JOHN NACCHIO PRESIDENT OF AT&T'S CONSUMER LONGDISTANCE UNIT EXLAX SANDOZ PHARMACEUTICALS A UNIT OF SANDOZ CORP TAPPED GREY ADVERTISING NEW YORK TO CREATE ADS FOR EXLAX LAXATIVE PREVIOUSLY AT BLOOM FCA NEW YORK BILLINGS ARE ESTIMATED AT 8 MILLION BLOOM RETAINS SANDOZ'S TAVIST THERAFLU TRIAMINIC AND TRIAMINICIN ACCOUNTS REVIEW CITIZENS FINANCIAL GROUP PROVIDENCE RI SAID IT HAS PUT ITS 5 MILLION ACCOUNT INTO REVIEW THE INCUMBENT PROVIDENCE SHOP DUFFY & SHANLEY IS PARTICIPATING CITIZENS SAID CITIZENS FINANCIAL A UNIT OF THE ROYAL BANK OF SCOTLAND PLC OPERATES CITIZENS BANK IN SOUTHERN NEW ENGLAND STATES AND CITIZENS MORTGAGE CO BASED IN ATLANTA ACQUISITION AGENCY HOLDING COMPANY OMNICOM GROUP SAID IT HAS ACQUIRED WWAV GROUP PLC WITH BILLINGS OF ABOUT 95 MILLION IN DIRECTRESPONSE AND DATABASE MARKETING TERMS OF THE CASH TRANSACTION WEREN'T DISCLOSED OMNICOM SAID IT WOULD MERGE THE UK OPERATIONS OF ITS RAPP COLLINS WORLDWIDE MARKETING UNIT INTO THE WWAV SHOP FORMING A DIRECTRESPONSE AGENCY IN EUROPE WITH 135 MILLION IN BILLINGS 9401060030 940106 KMART TO REVAMP BUSINESS TAKE CHARGE OF 13 BILLION RETAILER TO SELL OFF STAKES IN SPECIALTY DIVISIONS RELOCATE MORE STORES BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP ADMITTING THAT MANY OF ITS DISCOUNT STORES AREN'T BIG ENOUGH TO COMPETE IN TODAY'S FIERCE RETAIL ENVIRONMENT ANNOUNCED A 13 BILLION PRETAX CHARGE MAINLY FOR REPLACING 500 STORES WITH LARGER ONES IN A FURTHER EFFORT TO FOCUS ON ITS CORE DISCOUNT STORES THE NATION'S SECONDLARGEST RETAILER SAID IT PLANS TO SELL TO THE PUBLIC STAKES OF 20 TO 30 IN FOUR SPECIALTY DIVISIONS KMART WILL CREATE FOUR SEPARATE SERIES OF STOCK TIED TO EARNINGS OF EACH DIVISION THE BORDERSWALDEN BOOKSTORE GROUP THE BUILDERS SQUARE HOMEIMPROVEMENT CHAIN THE OFFICEMAX OFFICESUPPLY UNIT AND THE SPORTS AUTHORITY SPORTINGGOODS GROUP THE MOVE WILL ALLOW KMART TO CONTROL THE BUSINESSES BUT LET THEM TRADE SEPARATELY THE TROY MICH RETAILER MADE CLEAR WHY SUCH MAJOR STEPS ARE NECESSARY IT SAID EARNINGS BEFORE SPECIAL CHARGES FOR THE FOURTH QUARTER AND YEAR ENDING JAN 26 WILL BE WELL BELOW YEAREARLIER LEVELS AND DISCLOSED THAT SALES IN THE CRITICAL CHRISTMAS SEASON WERE LOWER THAN EXPECTED ESPECIALLY FOR APPAREL WHERE RECEIPTS WERE FLAT A YEAR EARLIER KMART EARNED 115 A SHARE FOR THE QUARTER AND 206 A SHARE FOR THE YEAR KMART SAID THE FOURTHQUARTER CHARGE WHICH WILL BE 850 MILLION AFTER TAXES WILL RESULT IN A LOSS FOR THE YEAR WHEN COMBINED WITH TWO OTHER CHARGES TOTALING 450 MILLION RELATED TO PLANNED SALES OF TWO OTHER SPECIALTY DIVISIONS IN 1993 KMART POSTED NET INCOME OF 941 MILLION ON SALES OF 377 BILLION THE RETAILER'S LACKLUSTER CHRISTMAS RESULTS FOLLOW THREE CONSECUTIVE QUARTERS OF DECLINING EARNINGS AND FIVE YEARS OF FLAT PERSHARE RESULTS UNDER PRESSURE TO BOLSTER KMART'S STRUGGLING DISCOUNTSTORE OPERATION CHAIRMAN JOSEPH E ANTONINI HAS EMBARKED ON A BROAD RESTRUCTURING PLAN THAT INVOLVES SHARPLY SCALING BACK THE SPECIALTYSTORE OPERATIONS KMART BEGAN ACQUIRING ONLY A FEW YEARS AGO WITH YESTERDAY'S ANNOUNCEMENT KMART OFFICIALS ALSO ACKNOWLEDGED THE NEED TO ALTER GREATLY THE DIRECTION OF THE 35 BILLION STORERENOVATION PLAN UNDER WAY SINCE 1990 FOR THE COMPANY'S 2347 US DISCOUNT STORES THEY NOW HAVE CONCLUDED THAT THEIR BIGGER STORES THOSE WITH 110000 OR MORE SQUARE FEET PERFORM MUCH BETTER THAN THE OLDER 40000TO65000SQUAREFOOT STORES IT IS APPARENT THAT MANY OF THE STORES ORIGINALLY SLATED FOR REFURBISHMENT ARE NOT LARGE ENOUGH TO PROVIDE A STRONG COMPETITIVE VEHICLE FOR THE FUTURE SAID JOSEPH R THOMAS EXECUTIVE VICE PRESIDENT OF US KMART STORES RETAIL ANALYST WALTER LOEB SAID THAT KMART'S DECISION TO CLOSE 500 MORE STORES THAN ORIGINALLY PLANNED AND REPLACE THEM ALL WITH LARGER ONES IS AN ADMISSION THAT IF THEY DIDN'T DO THIS THEY WOULD LOSE SHARE TO OTHER COMPETITORS UNDER THE RENOVATION PROGRAM KMART ALREADY HAS RELOCATED 300 STORES KMART IS ENGAGED IN A FIERCE COMPETITION WITH INDUSTRY LEADER WALMART STORES INC OF BENTONVILLE ARK IN CONTRAST TO KMART'S EXPANSION PROGRAM WHICH MOSTLY INVOLVES RENOVATING OR RELOCATING OLD STORES WALMART IS AGGRESSIVELY BUILDING NEW ONES KMART ALSO FACES COMPETITIVE PRESSURES FROM DEPARTMENT STORES SUCH AS JC PENNEY CO AND SEARS ROEBUCK & CO WHICH HAVE IMPROVED THEIR APPAREL OFFERINGS AND FROM OUTLET MALLS AND CATEGORY KILLERS SUCH AS TOYS R' US INC REACTION TO KMART'S ACTIONS WAS SWIFT ON WALL STREET TRADING IN KMART STOCK WAS HEAVY WITH 37 MILLION SHARES CHANGING HANDS THE STOCK FELL 50 CENTS A SHARE TO 21 NEAR THE 52WEEK LOW OF 1950 AND TWO DEBTRATING SERVICES STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC PUT KMART STOCK ON REVIEW FOR POSSIBLE DOWNGRADE S&P SAID THAT WHILE KMART IS TAKING STEPS TO IMPROVE ITS PROFITABILITY AND COMPETITIVE POSITION THE RATING AGENCY IS CONCERNED THAT THE CORE DISCOUNTSTORE BUSINESS MAY NOT GENERATE SUFFICIENT RETURNS IN THE FUTURE RETAIL ANALYSTS MOSTLY APPLAUDED KMART FOR TAKING ACTIONS TO BOLSTER ITS DISCOUNT STORES BUT SEVERAL MAINTAINED THAT THE RENOVATED STORES WHILE SHARPER AREN'T PERFORMING AS WELL AS EXPECTED AND ARE LOSING MARKET SHARE FOR ITS PART KMART CLAIMS THE STORES THAT FEATURE ITS SOCALLED LOOK OF THE 90S OUTPERFORM OTHER STORES GARNERING 17 MORE SALES AND 12 MORE CUSTOMERS BECAUSE OF KMART'S POOR PROFIT PERFORMANCE IN RECENT YEARS IT'S VERY HARD TO JUMP UP AND DOWN ABOUT ANY MOVES THE COMPANY MAKES IN A POSITIVE DIRECTION SAID MARGO MCGLADE A PAINEWEBBER ANALYST AND VETERAN KMART FOLLOWER EVEN WITH SHINY NEW STORES SHE SAID KMART HAS YET TO PROVE IT CAN RUN THE STORES WELL NEARLY 70 OF THE 13 BILLION CHARGE WILL COVER CLOSING AND RELOCATING THE 500 STORES THE REST WILL COVER KMART'S PLAN ALSO ANNOUNCED YESTERDAY TO MERGE ITS 1232STORE WALDENBOOKS SPECIALTY DIVISION WITH ITS 43STORE BORDERS BOOKS UNIT AND TO CLOSE 187 UNDERPERFORMING WALDENBOOK STORES THE CHARGE ALSO COVERS KMART'S PLAN TO ACCELERATE RENOVATIONS OF ITS BUILDERS SQUARE HOMEIMPROVEMENT STORES MANY ANALYSTS THINK KMART ERRED WHEN IT STARTED BUYING SPECIALTY STORES IN THE 1980S AFTER MUCH CRITICISM MR ANTONINI ANNOUNCED LATE LAST YEAR THAT KMART WOULD SELL THE UNPROFITABLE PACE MEMBERSHIP WAREHOUSE UNIT TO WALMART AND THE PAYLESS DRUGSTORE OPERATIONS TO A LOS ANGELES INVESTMENT FIRM THE SALE OF MINORITY STAKES IN THE FOUR REMAINING SPECIALTY BUSINESSES IS THE LATEST STEP TO SCALE BACK SPECIALTY OPERATIONS GEORGE MRKONIC HEAD OF KMART'S SPECIALTY RETAILING DIVISION SAID INVESTMENT BANKERS PLACED THE TOTAL MARKET VALUE OF THE FOUR DIVISIONS AT ABOUT 3 BILLION WHICH INDICATES THAT KMART PROBABLY WILL GENERATE 600 MILLION TO 900 MILLION FROM THE OFFERINGS THE COMPANY WHICH WILL CONTINUE TO CARRY THOSE BUSINESSES' EARNINGS ON ITS BOOKS SAID ITS BOARD WILL DETERMINE AT A LATER DATE THE TIMING AND SIZE OF SUCH PUBLIC OFFERINGS AS WELL AS THE SHARE PRICES MR ANTONINI SAID THE OFFERINGS WOULD ENHANCE SHAREHOLDER VALUE AND GIVE KMART GREATER FLEXIBILITY IN RAISING CAPITAL AND STRUCTURING EMPLOYEEINCENTIVE PLANS FOR THE INDIVIDUAL BUSINESSES AS FOR KMART'S CORE DISCOUNT STORES NEW YORK RETAIL CONSULTANT KURT BARNARD SAID THE RETAILER MUST STRENGTHEN ITS APPAREL DEPARTMENTS HE SAID THE COMPANY HASN'T MATCHED THE OUTSTANDING EXPECTATIONS IN APPAREL RAISED BY ITS MUCHTOUTED TELEVISION ADVERTISING CAMPAIGN BEGUN LAST YEAR INDEED MR ANTONINI SAID THAT KMART HAD A DIFFICULT TIME COAXING CUSTOMERS INTO ITS APPAREL DEPARTMENTS THIS CHRISTMAS EVEN DURING CLEARANCE PERIODS IT WAS RATHER AMAZING FOR ME TO SEE HE SAID BLAMING CONSUMERS' PENCHANT ALL YEAR FOR ACQUIRING GOODS FOR THE HOME SLUGGISH CLOTHING SALES HURT FULLYEAR RESULTS HE SAID AS DID A DECLINE IN BUILDERS SQUARE PROFIT CAUSED BY SEVERE WINTER STORMS IN THE FIRST QUARTER AN 87 MILLION OPERATING LOSS AT PACE THROUGH THE FIRST NINEMONTH PERIOD AND HIGHER INTEREST EXPENSE ACTIONS TAKEN BY KMART SINCE 1990 TO BOLSTER ITS CORE DISCOUNTSTORE OPERATIONS FEBRUARY 1990 UNVEILS PLANS TO SPEND 23 BILLION OVER NEXT FIVE YEARS 1 BILLION MORE THAN EARLIER FORECAST TO EXPAND AND RELOCATE MORE STORES THAN PREVIOUSLY PROJECTED AND TO DO IT MORE QUICKLY TOOK A 422 MILLION AFTERTAX 640 MILLION PRETAX CHARGE TO COVER THE COST AUGUST 1991 SELLS 1 BILLION OF A NEW SECURITY TO ENSURE THAT ITS STOREEXPANSION EFFORT ISN'T CRIMPED BY LENDERS' WARINESS TO LEND TO DEVELOPERS MAY 1993 AGREES TO SELL 14 OF ITS AILING PACE MEMBERSHIP WAREHOUSE DIVISION STORES TO RIVAL WALMART STORES INC DISCLOSES IT MIGHT SELL MINORITY INTERESTS IN ONE OR MORE SPECIALTYSTORE CHAINS JUNE 1993 TESTS SUPER KMART STORES WHERE GROCERIES ARE SOLD ALONG WITH GENERAL MERCHANDISE RIVAL WALMART ALREADY HAS 40 SUCH COMBINATION STORES AUGUST 1993 PUTS ITS 560STORE PAYLESS DRUGSTORES UNIT ON THE AUCTION BLOCK IN HOPES OF GETTING AS MUCH AS 1 BILLION FOR IT NOVEMBER 1993 AGREES TO SELL PAYLESS UNIT FOR OVER 1 BILLION TO A LOS ANGELES INVESTMENT FIRM AND ALSO ARRANGES SALE OF 91 MORE PACE WAREHOUSE CLUBS TO WALMART JANUARY 1994 INCREASES TO 800 FROM 300 THE NUMBER OF CORE DISCOUNT STORES IT WILL CLOSE AND RELOCATE AND TO 700 FROM 620 THE NUMBER OF STORE EXPANSIONS SAYS IT INTENDS TO SELL STOCK IN FOUR SPECIALTYSTORE DIVISIONS AND ANNOUNCES AN 850 MILLION AFTERTAX 13 BILLION PRETAX CHARGE 9401060029 940106 OIL LEAKS GLOBAL SPY NETWORKS EAVESDROP ON PROJECTS OF PETROLEUM FIRMS ENGINEER WHO WORE A BUG TO LUNCH HELPED CRACK RING WORKING IN BRITAIN THE DIRTY DOZEN' INSIDE BP BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IT WAS A LUNCHEON FOR THREE AT THE LUXURIOUS INN ON THE PARK ONE WAS AN EXXON CORP ENGINEER THE OTHER TWO MEN HAD A PROPOSITION WOULD THE ENGINEER BE WILLING THEY WANTED TO KNOW TO PERFORM A LITTLE INDUSTRIAL ESPIONAGE IT WOULD BE SIMPLE WHEN EXXON ASKED SUPPLIERS TO PROVIDE NEW EQUIPMENT SUCH AS COMPONENTS FOR PETROCHEMICAL PLANTS PARTS FOR OFFSHORE OIL RIGS OR STEEL PIPE FOR VAST PIPELINE PROJECTS ALL THE ENGINEER HAD TO DO WAS PROVIDE INSIDE INFORMATION WHAT WAS EXXON'S BUDGET FOR THE JOB WHO WERE THE POTENTIAL SUPPLIERS HOW MUCH WERE COMPETITORS BIDDING TO WIN THE CONTRACT IF THE EXXON ENGINEER COULD SUPPLY THAT SORT OF DATA HE WAS TOLD THE OTHER MEN WOULD ACT AS INFORMATION BROKERS SELLING THE INSIDE INFORMATION TO SUPPLIERS IN BRITAIN GERMANY OR JAPAN WHO WERE ANXIOUS TO WIN THE BIDS ONE BROKER AT THE LUNCH MICHAEL SZRAJBER TOLD THE EXXON ENGINEER THAT HE WOULD BE PAID HANDSOMELY FOR HIS INFORMATION AND THAT HIS IDENTITY WOULD BE KEPT SECRET PROTECTED BY CLANDESTINE MEETINGS I NEVER TALK TO PEOPLE AT THE OFFICE EITHER I MEET THEM AFTER OFFICE HOURS OR TALK AT NIGHT YOU KNOW IT'S THE ONLY WAY YOU CAN DO IT MR SZRAJBER SAID THAT LUNCHTIME CONVERSATION RECORDED IN 1990 BY THE EXXON ENGINEER WHO WAS COOPERATING WITH BRITISH POLICE TOUCHED OFF INVESTIGATIONS THAT HAVE UNCOVERED A SERIES OF SPY NETWORKS AROUND THE WORLD THESE NETWORKS US AND BRITISH INVESTIGATORS SAY HAVE PENETRATED MANY OF THE MAJOR INTERNATIONAL OIL COMPANIES INCLUDING THE ROYAL DUTCH/SHELL GROUP BRITISH PETROLEUM CO MOBIL CORP THE MARATHON OIL UNIT OF USX CORP AND STATOIL THE NORWEGIAN GOVERNMENT'S OIL CONCERN THE OIL COMPANIES WON'T COMMENT ON THE RECORD HOWEVER AN INTERNAL BRIEFING PAPER WRITTEN LATE LAST YEAR AT ONE US OIL COMPANY STATES WE ARE NOW AWARE OF THE EXISTENCE OF MANY HIGHLY ORGANIZED SOPHISTICATED NETWORKS OF CORRUPTION OPERATING ON AN INTERNATIONAL SCALE THE DISCOVERY HAS TRIGGERED A HUNT FOR MOLES WITHIN THE BIG OIL COMPANIES IN EUROPE THE US AND ASIA EMPLOYEE PHONE CALLS ARE BEING TRACED SUSPICIOUS TRIPS ARE BEING CHECKED AND COMPANY SECURITY OFFICIALS ARE COMBING THROUGH THE BIDDING PROCESSES FOR CERTAIN CONTRACTS LOOKING FOR MINUTE IRREGULARITIES THAT MIGHT INDICATE A SPY AT WORK IT'S LIKE A JOHN LE CARRE NOVEL SAYS ONE OIL COMPANY SECURITY DIRECTOR BECAUSE PAYMENTS ARE OFTEN CONCEALED IN SWISS OR PANAMANIAN BANKS PROVING THAT A SPY IS AT WORK CAN BE DIFFICULT IN THE US THE FEDERAL BUREAU OF INVESTIGATION HAS BEEN CONDUCTING AN INQUIRY BUT LACKS ENOUGH EVIDENCE FOR INDICTMENTS IN NORWAY POLICE HAVE MADE A FEW ARRESTS IN BRITAIN HOWEVER A TROVE OF DOCUMENTS FOUND IN MR SZRAJBER'S LONDON OFFICE HAS LED TO A SERIES OF INDICTMENTS AND CONVICTIONS INCLUDING THAT OF MR SZRAJBER NAMES OF SOME SUPPLIERS WHO ALLEGEDLY HAVE BOUGHT INSIDE INFORMATION FROM THE BROKERS HAVE ALSO SURFACED INCLUDING TWO PROMINENT JAPANESE TRADING COMPANIES ITOCHU CORP AND MARUBENI CORP AND THYSSEN AG AND MANNESMANN AG BIG GERMAN PRODUCERS OF STEEL AND PIPE WHEN BRITISH POLICE RAIDED THE LONDON OFFICES OF THE TWO JAPANESE FIRMS THEY FOUND NUMEROUS BP INTERNAL DOCUMENTS SOME MARKED CONFIDENTIAL A MARUBENI OFFICIAL WAS ARRESTED AND RELEASED ON POLICE BAIL BUT HE THEN LEFT BRITAIN AND HASN'T RETURNED MARUBENI DECLINES TO COMMENT AN ITOCHU OFFICIAL WAS CHARGED WITH CONSPIRACY TO DEFRAUD BP AND PUT ON TRIAL LAST YEAR BUT EVEN THOUGH HE ADMITTED HE PAID AN INFORMATION BROKER AND GOT BP INTERNAL DOCUMENTS A JURY ACQUITTED HIM IN A STATEMENT ITOCHU SAYS THAT ITS EMPLOYEE HAD NO IDEA THE BP DOCUMENTS WERE CONFIDENTIAL OR OBTAINED ILLEGALLY AND THAT HE DIDN'T ACT IN ANY WAY DETRIMENTAL TO BP IT WAS FOR THESE REASONS WE BELIEVE THAT THE JURY ACQUITTED OUR EMPLOYEE AND CLEARED OUR NAME ITOCHU SAYS THYSSEN HAS ISSUED A STATEMENT THAT THE COMPANY IS NOW AWARE THAT THE PRACTICES OF SOME INDEPENDENT CONSULTANTS HAS BEEN CRITICIZED AND THE USE OF CONSULTANTS IS CURRENTLY UNDER REVIEW BY SENIOR MANAGEMENT MANNESMANN CONCEDES THAT IN ONE CASE THE COMPANY MADE IMPROPER PAYMENTS THE STAKES ARE HUGE EVERY YEAR THE BIG OIL COMPANIES BUY BILLIONS OF DOLLARS OF EQUIPMENT TO PUMP TRANSPORT AND REFINE OIL AND GAS WITH A SINGLE CONTRACT OFTEN WORTH MORE THAN 100 MILLION SOME SUPPLIERS ARE ALL TOO WILLING TO BUY INSIDE INFORMATION IN ORDER TO WIN IF THEY ARE NOT SO WILLING INFORMATION BROKERS PUSH THEM TO BUY IT ACCORDING TO THE BRIEFING PAPER WRITTEN BY THE US OIL COMPANY VENDORS SUPPLIERS AND SUBCONTRACTORS HAVE OFTEN FELT INTIMIDATED BY THESE BROKERS WHO OFTEN PROVIDE CONVINCING EVIDENCE OF THEIR ABILITY TO STEER AN AWARD IN THE DIRECTION THAT SUITS THEM THE DOCUMENT SAYS IF VENDOR A' WILL NOT ENGAGE THEIR SERVICES THEY WILL THREATEN TO REPRESENT VENDOR B' AND ENSURE THAT VENDOR A IS DISADVANTAGED USUALLY AN INFORMATION BROKER CONCENTRATES ON TRYING TO MAKE A DEAL WITH THE VENDOR MOST LIKELY TO WIN SINCE THE INFORMATION BROKER GETS PAID HIS COMMISSION 2 TO 4 OF THE CONTRACT ONLY IF HIS VENDOR GETS THE CONTRACT SOMETIMES A BROKER IN ONE CITY WILL OBTAIN INSIDE INFORMATION AND PASS IT TO A BROKER IN ANOTHER CITY WHO IN TURN PASSES IT TO A SUPPLIER AND THEN THE COMMISSION IS SPLIT US AND BRITISH INVESTIGATORS SAY INFORMATION BROKERS ARE OPERATING IN BOSTON HOUSTON SINGAPORE HONG KONG GENEVA PARIS AND TRIPOLI LIBYA AND ABERDEEN SCOTLAND AS WELL AS LONDON THE SPY NETWORK CAME TO LIGHT ALMOST BY CHANCE WHEN EXXON'S PETROCHEMICAL PLANT IN FAWLEY ENGLAND HAD SOME NEW PROCESSING FACILITIES BUILT PARTLY BY DUTTON ENGINEERING OF BRITAIN A DISPUTE BROKE OUT OVER CONTRACT OVERRUNS TO RESOLVE IT COLIN STUART MANAGING DIRECTOR OF DUTTON INVITED ROBERT WANSTALL AN EXXON ENGINEER TO A PRELIMINARY MEETING AT THE INN ON THE PARK IN LONDON SETTLE THE DISPUTE FOR ABOUT 130000 HE SUGGESTED TO MR WANSTALL AND THE EXXON ENGINEER WOULD GET 10000 FOR HIMSELF MR WANSTALL TOLD HIS SUPERIORS WHO GOT IN TOUCH WITH SECURITY OFFICIALS AT EXXON INTERNATIONAL HEADQUARTERS IN NEW JERSEY WHO INFORMED BRITISH POLICE MR WANSTALL THEN FEIGNED AGREEMENT WITH MR STUART THAT HE WOULD TAKE THE BRIBE THE PAYOFF WAS SCHEDULED FOR JULY 17 1990 AT INN ON THE PARK MR WANSTALL WAS WEARING A CONCEALED TAPE RECORDER AT LUNCH MR WANSTALL WAS HANDED A BROWN ENVELOPE WITH 10000 IN CASH HE WAS ALSO INTRODUCED BY MR STUART TO MR SZRAJBER WHO SAID MR WANSTALL COULD MAKE MUCH BIGGER MONEY IN RETURN FOR INFORMATION ON EXXON CONTRACTS WHAT DO YOU WANT ER ME TO DELIVER TO YOU MR WANSTALL ASKED THING STARTS WITH THE VENDOR'S LIST MR SZRAJBER REPLIED NEXT THING YOU KNOW FIND OUT WHO'S MOST LIKELY TO GET THE JOB ONCE THE BIDS COME IN WE NEED PRICES DELIVERIES COMMERCIAL TERMS ETC THEN KEEP OUR VENDORS INFORMED PUT THEM IN THE NUMBER ONE POSITION A VENDOR THAT KNOWS WHAT COMPETITORS ARE BIDDING MR SZRAJBER ADDED CAN INCREASE ITS BID WHILE STILL UNDERCUTTING THE COMPETITION THAT MEANS EVEN FATTER COMMISSION PAYMENTS FOR THE INFORMATION MR SZRAJBER SAID MR WANSTALL WANTED TO KNOW HOW HE WOULD BE PAID MR SZRAJBER SAID A WINNING SUPPLIER WOULD PAY THE COMMISSION TO ASTAR INTERNATIONAL A SWISS COMPANY CONTROLLED BY MR SZRAJBER WHICH WOULD FORWARD A SHARE OF THE PROCEEDS TO MR WANSTALL MR SZRAJBER ADDED NOW OBVIOUSLY IT MAY BE A BIT EMBARRASSING IF YOU TELL ASTAR TO SEND IT TO BARCLAYS BANK TO YOUR ACCOUNT IN ENGLAND BECAUSE THERE IS A RECORD INSTEAD MR WANSTALL SHOULD SET UP A NUMBERED SWISS BANK ACCOUNT AND WHEN THE MONEY COMES IN AUTOMATICALLY IT GOES TO YOUR NUMBERED ACCOUNT TWO WEEKS LATER BRITISH POLICE RAIDED MR SZRAJBER'S OFFICE IN LONDON IN ADDITION TO LETTERS FAXES AND CONFIDENTIAL BP OIL COMPANY DOCUMENTS THE POLICE FOUND TWO OTHER ITEMS ONE WAS MR SZRAJBER'S DIARY IN WHICH HE DETAILED THE FLOW OF INFORMATION FROM OILCOMPANY SPIES THROUGH INFORMATION BROKERS TO SUPPLIERS POLICE ALSO FOUND RECORDS OF MR SZRAJBER'S SWISS BANK ACCOUNTS SWISS AUTHORITIES HAVE REFUSED TO TURN OVER BANK RECORDS TO AID THE INVESTIGATION BRITISH AUTHORITIES SAY IN BERN A SPOKESMAN FOR THE SWISS DEPARTMENT OF JUSTICE SAYS THE GOVERNMENT REFUSED THE BRITISH REQUEST BECAUSE THERE WAS NO TREATY WITH BRITAIN COVERING SUCH REQUESTS AND BECAUSE THE MATTER WAS NOT CONSIDERED A CRIME UNDER SWISS LAW THE SZRAJBER DOCUMENTS HAVE HELPED UNMASK SEVERAL OF THE RINGS SPYING ON OIL COMPANIES ONE TARGETED SHELL'S BRITISH OPERATION INCLUDING ITS ACQUISITION OF A VESSEL TO HOUSE WORKERS AT A NORTH SEA OIL RIG ACCORDING TO BRITISH PROSECUTORS A SHELL ENGINEER IN LONDON FRANCIS HEMSWORTH WAS GIVING INSIDE INFORMATION ON THE BIDDING PROCESS TO A LONDON BROKER NAMED JOHN NAPIER THE SHELL ENGINEER WAS PAID 45000 FOR THE INFORMATION THE DATA WERE THEN PASSED THROUGH TWO OTHER BROKERS TO A SCANDINAVIAN COMPANY BIDDING FOR THE CONTRACT IN OCTOBER MESSRS NAPIER AND HEMSWORTH PLEADED GUILTY TO MAKING AND RECEIVING CORRUPT PAYMENTS EACH WAS SENTENCED TO A YEAR IN JAIL THE TWO OTHER BROKERS WERE PUT ON TRIAL IN LONDON BUT WERE ACQUITTED IN ANOTHER CASE POLICE IN STAVANGER NORWAY HAVE CHARGED THAT AN ENGINEER WORKING FOR STATOIL THE NORWEGIAN OIL COMPANY HAD BEEN FEEDING INSIDE INFORMATION AND DOCUMENTS ON THE COMPANY'S OILPIPELINE CONTRACTS TO MANNESMANN THE GERMAN PIPE PRODUCER IN RETURN POLICE SAY THE ENGINEER GOT PAYMENTS WORTH MORE THAN 600000 STAVANGER POLICE ARRESTED THE ENGINEER AND TWO MANNESMANN OFFICIALS THE CASE IS HEADING TOWARD TRIAL A MANNESMANN SPOKESMAN IN DUSSELDORF CONCEDES THE COMPANY MADE THE PAYMENTS AND THAT THEY WERE IMPROPER THE SPOKESMAN ADDS THAT FOUR EMPLOYEES INVOLVED IN THE PAYMENTS HAVE LEFT THE COMPANY IN THE US THE SZRAJBER DOCUMENTS HAVE POINTED TO A SPY IN MOBIL THE DOCUMENTS INDICATE HE WAS RECRUITED AND OVERSEEN BY AN INFORMATION BROKER IN THE US WHO IN TURN WAS COOPERATING WITH INFORMATION BROKERS IN LONDON MOBIL DECLINES TO COMMENT FBI AGENTS ARE STILL TRYING TO TRACK THE SPY DOWN IN THE EXXON CASE MESSRS SZRAJBER AND STUART PLEADED GUILTY LAST FEBRUARY TO PAYING THE 10000 BRIBE TO THE EXXON ENGINEER BUT THE SZRAJBER DOCUMENTS SHOWED THAT A FAR BIGGER SCHEME A BROAD SPY OPERATION AGAINST BRITISH PETROLEUM WAS BEING CARRIED OUT BY MR SZRAJBER AND PAOLO SORELLI ANOTHER LONDON INFORMATION BROKER ACCORDING TO CHARGES BROUGHT BY BRITAIN'S SERIOUS FRAUD OFFICE IN A TRIAL IN LONDON'S SOUTHWARK CROWN COURT PROSECUTORS SAID THAT A SPY INSIDE BP'S PROCUREMENT OFFICE KNOWN ONLY AS MR X WAS FEEDING INFORMATION TO MR SORELLI MR SORELLI ALLEGEDLY WAS PASSING THE DATA ON TO MR SZRAJBER WHO IN TURN WAS SELLING THE INFORMATION TO VARIOUS SUPPLIERS IN THE CASE OF ONE BIG PIPELINE PROJECT TO A JOINT VENTURE OF THE GERMAN COMPANIES MANNESMANN AND THYSSEN IN SUCH PROJECTS OIL COMPANIES TRY TO KEEP THE LIST OF BIDDERS SECRET TO PREVENT COLLUSION AMONG SUPPLIERS OIL COMPANIES ALSO DON'T DISCLOSE WHICH WAY THEY ARE LEANING PRIOR TO AWARDING A CONTRACT TO KEEP COMPETITION BRISK DOCUMENTS AND TESTIMONY AT THE TRIAL OF MESSRS SORELLI AND SZRAJBER SHOW HOW THE ESPIONAGE SYSTEM WORKED FIVE YEARS AGO FOR EXAMPLE BP DISCOVERED THAT AN UNDERWATER PIPELINE BRINGING OIL FROM THE NORTH SEA HAD CORRODED IN A MARCH 3 1989 INTERNAL MEMO ONE OF THE EARLIEST BP DOCUMENTS ON THE PROBLEM A BP STUDY TEAM CONCLUDED THAT THE PIPELINE SHOULD BE REPLACED IMMEDIATELY THE TEAM ADDED MANNESMANN IS KNOWN TO HAVE SUFFICIENT CAPACITY SUMITOMO'S CAPACITY HAS TO BE CLARIFIED THE COST WAS ESTIMATED AT 79 MILLION THE MR XSORELLISZRAJBER INFORMATION NETWORK WAS ALREADY WORKING WELL TWO WEEKS BEFORE THE BP INTERNAL MEMO WAS EVEN WRITTEN MR SZRAJBER HAD JOTTED SOME NOTES IN HIS DIARY MAKING REFERENCE TO PAOLO MR SORELLI'S FIRST NAME PAOLOPIPE REPLACEMENT MANNESMANN & SUMITOMO ONLY VALUE 50 M ABOUT 74 MILLION BP SUBSEQUENTLY EXPANDED ITS LIST OF BIDDERS A FEW DAYS LATER MR SZRAJBER WROTE PAOLOBIDDERS 1 NIPPON STEEL 2 NKK 3 SUMITOMO 4 MANNESMANN THAT ACCURATELY IDENTIFIED ALL FOUR COMPANIES ON THE BIDDERS LIST BY THIS TIME ACCORDING TO COURT DOCUMENTS MR SZRAJBER HAD AGREED TO WORK FOR THE MANNESMANNTHYSSEN JOINT VENTURE IN RETURN FOR A COMMISSION WITH A SHARE OF THE COMMISSION GOING TO MR SORELLI MEANWHILE THE LINEUP OF BIDDERS CHANGED AGAIN WITH THE JAPANESE MILLS NIPPON STEEL CORP NKK CORP AND SUMITOMO CORP FORMING A CONSORTIUM TO MAKE A SINGLE BID THAT ANGERED BP OFFICIALS WHO TO AVOID TECHNICAL PROBLEMS WANTED JUST ONE MILL TO SUPPLY THE PIPE SINCE TECHNICAL CONSIDERATIONS CAN BE MORE IMPORTANT THAN PRICE IN DETERMINING WHO WINS SUCH PROJECTS THESE WERE IMPORTANT DEVELOPMENTS THE MR XSORELLISZRAJBER NETWORK SWUNG INTO ACTION TO FEED THIS INFORMATION TO THE MANNESMANNTHYSSEN VENTURE MR SZRAJBER JOTTED IN HIS DIARY MR X FROM BP BP DID NOT LIKE JAPANESE CONSORTIUM THEY ARE NOT FULLY ACCEPTED AND SO FAR HAVE NOT BEEN ASKED ANY QUESTIONS ON THE TECHNICAL SIDE ASK MANNESMANN TO AGREE EVERYTHING BP REQUESTS TECHNICALLY MANNESMANN'S BID HE ADDED IS 10 CHEAPER THAN THE JAPANESE BID THIS CRUCIAL INFORMATION WAS ALL RIGHT ON TARGET IT LOOKED AS IF THE MANNESMANNTHYSSEN VENTURE COULD COAST TO VICTORY AND WOULDN'T HAVE TO SHAVE PRICES TO WIN BUT THE GERMANS STILL WORRIED ABOUT THE JAPANESE THREAT AND DIDN'T HESITATE TO SEEK INFORMATION ON THEIR COMPETITOR INCLUDING THE JAPANESE BID THE SZRAJBER DIARY INDICATES ON APRIL 21 MR SZRAJBER WROTE TERNIEDEN MUST HAVE COPY JAP'S OFFER THE REFERENCE WAS TO JURGEN TERNIEDEN DIRECTOR OF PIPE SALES FOR THYSSEN'S TRADING SUBSIDIARY INTERVIEWED BY PHONE IN DUSSELDORF MR TERNIEDEN DENIES ASKING FOR OR RECEIVING INFORMATION ON THE JAPANESE BID WE WORKED WITH MR SZRAJBER HE SAYS BUT THERE IS A LOT OF CONFUSION IN MR SZRAJBER'S DIARY AND HE MAY HAVE MIXED THINGS UP ON MAY 22 1989 A BP OFFICIAL WROTE A CONFIDENTIAL INTERNAL MEMO RECOMMENDING THAT MANNESMANNTHYSSEN GET THE ORDER BECAUSE OF THE PRICE ADVANTAGE AND TECHNICAL ACCEPTABILITY FOUR DAYS LATER MR SZRAJBER GOT THE WORD AND JOTTED IN HIS DIARY MR X DON'T WORRY ABOUT THE TECHNICAL IN JUNE 1989 BP AWARDED THE PIPE CONTRACT TO THE MANNESMANNTHYSSEN VENTURE A THYSSEN UNIT IN DUSSELDORF THEN PAID NEARLY 15 MILLION TO MR SZRAJBER'S ASTAR INTERNATIONAL IN GENEVA WHICH FORWARDED NEARLY 400000 ABOUT 600000 TO A SORELLI NUMBERED ACCOUNT IN LUGANO SWITZERLAND PROSECUTORS SAID DURING THE COMPETITION FOR THE CONTRACT MR SZRAJBER HAD JOTTED IN HIS DIARY PAOLO WILL GIVE 400000 DOES NOT WANT TO REDUCE HIS MAN A REFERENCE TO MR SORELLI'S SPY INSIDE BP ASTAR SENT ANOTHER 400000 TO A SECOND NUMBERED ACCOUNT IN LUGANO WHICH PROSECUTORS SAID WAS MR X'S ACCOUNT ASKED FOR COMMENT THYSSEN'S MR TERNIEDEN SAYS THAT BECAUSE THE THYSSENMANNESMANN VENTURE WAS THE LOW BIDDER ANYWAY THYSSEN'S PAYMENTS TO MR SZRAJBER DIDN'T HAVE ANY IMPACT ON BP A MANNESMANN SPOKESMAN ALSO ASKED TO COMMENT SAYS HIS COMPANY HAD NO DIRECT CONTACT WITH MR SZRAJBER THYSSEN WHICH OWNS 25 OF THE MANNESMANN PIPE MILL REPRESENTS MANNESMANN IN BRITAIN FOR PIPE SALES ACCORDING TO MR TERNIEDEN AT THE TRIAL MR SZRAJBER DIDN'T TESTIFY MR SORELLI TOOK THE STAND AND DENIED PASSING CERTAIN INFORMATION TO MR SZRAJBER SAYING THAT THE SZRAJBER DIARY MAY HAVE CITED PAOLO AS THE SOURCE BUT SOMEONE ELSE MUST HAVE PROVIDED IT IN OTHER CASES MR SORELLI ADMITTED PASSING INFORMATION BUT SAID HE JUST MADE IT UP TO JUSTIFY HIS SHARE OF THE COMMISSION AS FOR DATA THAT OBVIOUSLY CAME FROM BP INCLUDING INTERNAL BP DOCUMENTS FAXED FROM MR SORELLI'S OFFICE TO MR SZRAJBER'S MR SORELLI TESTIFIED THAT HE HAD NO MR X INSIDE BP PROVIDING THE DATA INSTEAD HE SAID HE GOT IT FROM A MYSTERIOUS SWISS BANKER WHO UNFORTUNATELY HAD RECENTLY DIED ON MARCH 26 1993 THE JURY CONVICTED BOTH MR SZRAJBER AND MR SORELLI OF CONSPIRACY TO COMMIT FRAUD EACH WAS LATER SENTENCED TO THREE YEARS IN PRISON AND 600000 OF THEIR FUNDS WAS CONFISCATED MR X HAS NEVER BEEN PUBLICLY IDENTIFIED POLICE INVESTIGATORS SAY HOWEVER THAT MR X WASN'T ACTING ALONE BUT WAS PART OF A RING OF BP EMPLOYEES SELLING CONFIDENTIAL INFORMATION INVESTIGATORS CALL THE RING THE DIRTY DOZEN BECAUSE OF SWISS BANKSECRECY LAWS PAYOFFS FOR INFORMATION CAN'T BE TRACED WITH LEGAL CERTAINTY TO ANY BP EMPLOYEES TRIAL PROSECUTOR STEPHEN BATTEN SAID IN COURT SEVERAL OF THE SUSPECT EMPLOYEES HAVE LEFT BP SINCE THE CASE BECAME PUBLIC BUT NONE HAVE BEEN INDICTED WHETHER THE OIL INDUSTRY WILL BE ABLE TO STAMP OUT THE SPY RINGS IS UNCERTAIN ACCORDING TO A PROSECUTOR IN THE SHELL CASE INFORMATION BROKER NAPIER TOLD POLICE THAT THE PRACTICE OF GETTING CONFIDENTIAL INFORMATION WAS COMMONPLACE IN EVERY OIL COMPANY HE HAD DEALT WITH FOR 20 YEARS THAT MR NAPIER TOLD THE POLICE IS HOW PEOPLE WIN CONTRACTS 9401060028 940106 TECHNOLOGY HEWLETTPACKARD AGREES TO BUY 15 OF APPLEIBM SOFTWARE JOINT VENTURE BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL HEWLETTPACKARD CO AGREED TO BUY A 15 STAKE IN TALIGENT INC MARKING A MAJOR STRATEGY CHANGE FOR THE CLOSELY WATCHED SOFTWARE JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC HP'S MOVE MAKES IT THE FIRST NEW INVESTOR IN TALIGENT SINCE THE VENTURE WAS ESTABLISHED IN MARCH 1992 AN IBM EXECUTIVE SAID THE TWO COMPUTER HEAVYWEIGHTS MAY SIGN UP ONE OR TWO ADDITIONAL PARTNERS OVER TIME AS WELL THE HP INVESTMENT MARKS AN ENDORSEMENT OF TALIGENT'S TECHNICAL APPROACH BUT THE APPLEIBM PARTNERSHIP HAS SIGNIFICANTLY SCALED BACK ITS ORIGINAL MUCHBALLYHOOED PLANS FORMED IN 1992 TALIGENT TOOK AIM AT CREATING A UNIFIED SOFTWARE OPERATING SYSTEM THAT WOULD BREAK THE VIRTUAL MONOPOLY HELD BY MICROSOFT CORP VARIOUS NEWS REPORTS SAID THE NEW SYSTEM WOULD COME OUT IN LATE 1993 OR SOMETIME IN 1994 OR PERHAPS IN MID1995 TALIGENT EXECUTIVES WON'T SAY WHAT THEIR ORIGINAL DELIVERY DATE WAS BUT THEY NOW CONCEDE THAT TALIGENT WON'T DELIVER SUCH A SYSTEM FOR ANOTHER TWO YEARS GIVING MICROSOFT TIME TO COME OUT WITH A JAZZEDUP ENTRY OF ITS OWN INSTEAD TALIGENT WILL FIRST SELL SOFTWAREDEVELOPMENT TOOLS USING ITS APPROACH KNOWN AS OBJECTORIENTED PROGRAMMING INDEED HP HASN'T PLEDGED TO USE THE NEW OPERATING SYSTEM EVEN THOUGH IT IS INVESTING MORE THAN 10 MILLION FOR THE 15 STAKE ACCORDING TO AN INDIVIDUAL FAMILIAR WITH THE PARTNERSHIP AN OPERATING SYSTEM CONTROLS THE BASIC FUNCTIONS OF A COMPUTER HP WILL SIMPLY MAKE USE OF TALIGENTDEVELOPED TOOLS FOR WORKING ON HP'S OWN PROGRAMMING THE COMPANY SAID A FEW MONTHS AGO THE IBMAPPLE UNIT CONSCIOUSLY PUSHED BACK THE IDEA OF BRINGING FORTH A FULL NEW OPERATING SYSTEM FIRST SAID WILLIAM FILIP AN IBM GENERAL MANAGER WHO OVERSAW THE NEGOTIATIONS WITH HP TALIGENT DECIDED TO BRING THE TOOLS TO MARKET FIRST TO LET OTHER COMPUTER MAKERS INTEGRATE THEM INTO THEIR EXISTING OPERATING SYSTEMS HP WILL RECEIVE A BOARD SEAT AND NEW SHARES IN TALIGENT AND IBM AND APPLE WILL EACH RETAIN A 425 STAKE IN THE CONCERN BESIDES MONEY TO HELP FUND DEVELOPMENT FOR THREE YEARS AT TALIGENT WHICH NOW HAS 350 EMPLOYEES AND EXPECTS TO GROW TO 450 THIS YEAR HP ALSO WILL CONTRIBUTE SOME OF ITS OWN OBJECTORIENTED TECHNOLOGY TO THE VENTURE HP SAID IT WILL LICENSE AND USE TALIGENT TOOLS ON COMPUTERS THAT USE THE UNIX OPERATING SYSTEM AND AN HP CHIP CALLED PARISC IN THE HOPES OF MAKING THE MACHINES EASIER TO PROGRAM WITH OBJECT TECHNOLOGY PROGRAMMERS COMBINE REUSEABLE BUILDING BLOCKS OF SOFTWARE OR OBJECTS THAT COMMUNICATE WITH EACH OTHER AND HELP SOFTWARE WRITERS ASSEMBLE COMPLEX PROGRAMS QUICKLY NOW TALIGENT PLANS TO MAKE ITS SOFTWARE TOOLS AVAILABLE TO WORK WITH OTHER CHIPS AND OPERATING SYSTEMS INCLUDING IBM'S OS/2 APPLE'S SYSTEM 7 FOR THE MACINTOSH AND VARIOUS VERSIONS OF THE UNIX OPERATING SYSTEM THAT MOVE MIGHT UNDERCUT TALIGENT'S OWN EFFORTS TO GET COMPUTER MAKERS TO COMMIT TO THE FULLFLEDGED OPERATING SYSTEM IT WANTS TO DELIVER TWO YEARS HENCE BUT TALIGENT APPARENTLY HOPES TO BLUNT SUPPORT FOR AN OBJECTORIENTED SYSTEM FROM MICROSOFT DUE SOMETIME NEXT YEAR AND CODENAMED CAIRO BY GETTING SOFTWARE DEVELOPERS AND HARDWARE MAKERS TO BEGIN USING TALIGENTGEARED TOOLS NOW THIS MAY WELL SAVE TALIGENT SAID JOHN GAGE DIRECTOR OF SUN MICROSYSTEMS INC'S SCIENCE OFFICE THEY HAD GOOD ENGINEERS AND SOME GOOD WORK BUT NO PRODUCT AND NO CUSTOMERS JOSEPH GUGLIELMI TALIGENT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE STRATEGY WILL ALLOW APPLICATION SOFTWARE WRITTEN WITH TALIGENT'S PROGRAMMING TOOLS TO WORK ON COMPUTERS FROM MANY DIFFERENT VENDORS WE GET SUPPORT FROM THE WIDEST RANGE OF HARDWARE HE SAID IT ALSO SPEEDS TALIGENT'S TIME TO MARKET MR GUGLIELMI SAID IT WILL BEGIN SHIPPING EARLY VERSIONS OF ITS PROGRAMMING TOOLS TO SOFTWARE DEVELOPERS IN THE FIRST HALF OF THIS YEAR ALLOWING PROGRAMS WRITTEN WITH THEM TO START HITTING THE MARKET IN 1994 THE THIRD MAJOR PLAYER IN THE SOFTWARE RACE IS NEXT INC WHOSE OBJECTORIENTED TECHNOLOGY HAS ALSO BEEN LICENSED BY HP AND WHICH RECENTLY AGREED TO LICENSE IT TO SUN A KEY HP COMPETITOR WHAT'S GOING TO HAPPEN IN THE NEXT TWO OR THREE YEARS IS THE WAY THAT SOFTWARE IS WRITTEN IS GOING TO CHANGE SAID GARY EICHHORN GENERAL MANAGER OF HP'S WORKSTATIONSYSTEMS GROUP IN EVERY MAJOR CHANGE IN THE INDUSTRY THERE IS AN OPPORTUNITY FOR A NEW LEADER TO EMERGE HE EXPECTS TO BEGIN SHIPPING COMPUTERS THAT USE THE TALIGENT TECHNOLOGY BY 1995 HP HAS THE RIGHT TO USE THE FULLFLEDGED TALIGENT OPERATING SYSTEM WHEN IT FINALLY IS READY BUT HASN'T DECIDED WHETHER IT WILL