TALK ABOUT SUPERMOMS REBECCA LUKENS MOTHER OF SIX TOOK OVER AN OLD STEEL MILL AND MADE IT PROFITABLE SHE AND HER HUSBAND ANTICIPATED THE INDUSTRIAL REVOLUTION AND DIVERSIFIED INTO BOILERPLATE ALL 100 YEARS BEFORE WOMEN HAD THE RIGHT TO VOTE YET WHEN THE NAMES OF AMERICA'S PIONEER INDUSTRIALISTS COME UP MRS LUKENS IS RARELY ON THE LIST LUKENS INC THE COATESVILLE PABASED DESCENDANT OF THE COMPANY SHE RAN WANTS TO CHANGE THAT SHE WENT THROUGH THE GLASS CEILING VERY EARLY SAYS R WILLIAM VAN SANT LUKENS'S CHAIRMAN THE STEELMAKER TODAY IS HONORING MRS LUKENS ON THE BICENTENNIAL OF HER BIRTH STATE AND COUNTY OFFICIALS WILL LAY A WREATH ON HER GRAVE AND ATTEND A RECEPTION IN THE QUAKER MEETING HALL WHERE SHE WAS MARRIED IN 1813 THE PENNSYLVANIA SENATE ALREADY SENT CONGRATULATIONS PROCLAIMING THAT MRS LUKENS WAS THE NATION'S FIRST WOMAN INDUSTRIAL LEADER AND THE COMPANY IS PUTTING TOGETHER BIOGRAPHICAL MATERIAL ON MRS LUKENS FOR LOCAL SCHOOLCHILDREN MRS LUKENS WAS ALWAYS A LITTLE AVANTGARDE SHE WORE THE HEAVY DRESSES OF THE QUAKERS BUT SECRETLY LOVED HORSEBACK RIDING AND READING FANTASY NOVELS BOTH CONSIDERED A LITTLE TOO WORLDLY FOR HER FELLOW CHURCHGOERS WHEN CHURCH ELDERS CAME IN AND SAW A NOVEL IN HER HOUSE THEY INTERROGATED HER HISTORIANS SAY SHE REPLIED THAT SHE WANTED TO MAKE SURE IT CONTAINED NOTHING RACY IN CASE HER CHILDREN WANTED TO READ IT HER HUSBAND CHARLES LUKENS GAVE UP HIS MEDICAL PRACTICE TO HELP STEER THE MILL TOWARD MAKING BOILERPLATE BUT THE VENTURE WAS FLEDGLING WHEN HE DIED MRS LUKENS THEN 30 WAS PREGNANT SHE MOVED AHEAD WITH THE BOILERPLATE VENTURE EVEN AGAINST HER MOTHER'S WISHES DURING AN ECONOMIC PANIC IN 1837 SHE HALTED PRODUCTION AND PUT HER EMPLOYEES TO WORK REPAIRING THE MILL SHE DID THE RIGHT THING SAYS EUGENE DIORIO A LOCAL HISTORIAN AND FORMER LUKENS EMPLOYEE WHEN BUSINESS IS BAD YOU DO MAINTENANCE BECAUSE WHEN IT'S GOOD YOU DON'T HAVE TIME SHE RETIRED IN THE LATE 1840S AFTER HAVING DONE A PRETTY GOOD JOB IF SHE DID SAY SO HERSELF I HAD BUILT A VERY SUPERIOR MILL THOUGH A PLAIN ONE AND OUR CHARACTER FOR MAKING BOILER PLATE STOOD FIRST IN THE MARKET HENCE WE HAD AS MUCH BUSINESS AS WE COULD DO SHE WROTE 9401060025 940106 POLITICS & POLICY CLINTON LAWYER SECURED US SUBPOENA TO PREVENT RELEASE OF WHITEWATER FILES BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S PERSONAL LAWYER HAD THE JUSTICE DEPARTMENT SUBPOENA DOCUMENTS REGARDING THE WHITEWATER DEVELOPMENT CO A MOVE THAT PROBABLY PREVENTS THEIR RELEASE UNDER THE FREEDOM OF INFORMATION ACT WHITE HOUSE ADVISER BRUCE LINDSEY SAID IN A STATEMENT LAST NIGHT THAT THE SUBPOENA WAS SOUGHT TO ASSURE THE INTEGRITY OF THE DOCUMENTS AND THE PRIVACY OF THE PROCESS AS PROVIDED FOR BY FEDERAL LAW THE ANNOUNCEMENT WAS MADE THE SAME DAY THAT DAVID MARSTON A REPUBLICAN LAWYER AND FORMER US ATTORNEY IN PHILADELPHIA FILED A FREEDOM OF INFORMATION ACT REQUEST SEEKING COPIES OF THE DOCUMENTS THAT THE PRESIDENT HAD SAID HE WAS TURNING OVER VOLUNTARILY TO THE JUSTICE DEPARTMENT MR MARSTON WAS SEEKING THE DOCUMENTS FOUND IN THE OFFICE OF WHITE HOUSE DEPUTY COUNSEL VINCENT FOSTER AFTER HE COMMITTED SUICIDE LAST JULY IN ADDITION MR MARSTON'S FOIA REQUEST SOUGHT OTHER DOCUMENTS REGARDING WHITEWATER AND MADISON GUARANTY SAVINGS & LOAN ASSOCIATION WHICH IS UNDER INVESTIGATION BY FEDERAL AUTHORITIES IN HIS FOIA REQUEST MR MARSTON ARGUED THAT BECAUSE THE DOCUMENTS WERE TO BE TURNED OVER VOLUNTARILY THE JUSTICE DEPARTMENT COULDN'T LAWFULLY ASSERT ANY EXCEPTION TO FOIA HOWEVER MR LINDSEY'S STATEMENT APPEARS TO RULE OUT THE POSSIBILITY THAT THE DOCUMENTS CAN BE MADE PUBLIC MR LINDSEY SAID THAT ON DEC 23 THE DAY THE PRESIDENT AGREED TO VOLUNTARILY TURN OVER THE DOCUMENTS DAVID KENDALL THE PRESIDENT'S ATTORNEY REQUESTED THE PROTECTION OF A SUBPOENA THE SUBPOENA WAS ISSUED THE NEXT DAY ADMINISTRATION OFFICIALS SAID THE WHITE HOUSE HADN'T DISCLOSED THE EXISTENCE OF A SUBPOENA UNTIL YESTERDAY MR LINDSEY SAID THAT THE DOCUMENTS WILL BE TURNED OVER TO THE JUSTICE DEPARTMENT BEGINNING TODAY AND THAT THE SUBPOENA ORDERS THAT THEY ALL BE PRODUCED BY JAN 18 THE WHITE HOUSE HAS SAID THAT THE DELAY IN DELIVERING THE DOCUMENTS OCCURRED BECAUSE MR KENDALL WAS CATEGORIZING THE DOCUMENTS MR MARSTON A PARTNER IN THE LAW FIRM BUCHANAN INGERSOLL ASSAILED THE CLINTONS AND THEIR PERSONAL ATTORNEY FOR POLITICAL MISUSE OF THE JUSTICE DEPARTMENT THE JUSTICE DEPARTMENT CAN'T BE A REPOSITORY FOR WHATEVER INCONVENIENT RECORDS SOME PUBLIC OFFICIAL WOULD LIKE TO PUT THERE SO AS TO HAVE AN EXCUSE FOR AVOIDING PUBLIC SCRUTINY HE SAID IN AN INTERVIEW THE CLINTONS HAVE BEEN TRYING TO QUELL THE GROWING CONTROVERSY OVER THEIR WHITEWATER PARTNERSHIP WITH JAMES MCDOUGAL AND HIS FORMER WIFE SUSAN SINCE THE JULY 20 SUICIDE OF MR FOSTER ACTING AS THE CLINTONS' PERSONAL ATTORNEY MR FOSTER HAD HANDLED THE 1992 SALE OF THEIR STAKE IN THE ARKANSAS VACATIONHOME DEVELOPMENT TO MR MCDOUGAL AND HAD OVERSEEN THE PREPARATION OF DELINQUENT WHITEWATER TAX RETURNS MR MCDOUGAL A LONGTIME CAMPAIGN FUNDRAISER AND FRIEND OF MR CLINTON'S OWNED MADISON GUARANTY UNTIL FEDERAL REGULATORS TOOK IT OVER IN 1989 A TEAM OF CAREER JUSTICE DEPARTMENT PROSECUTORS IS INVESTIGATING AMONG OTHER THINGS WHETHER MADISON GUARANTY DEPOSITS WERE IMPROPERLY FUNNELED TO WHITEWATER OR MR CLINTON'S 1984 REELECTION CAMPAIGN FOR GOVERNOR OF ARKANSAS MR MCDOUGAL DENIES ANY WRONGDOING THERE'S NOTHING TO WHITEWATER SAID SAMUEL HEUER MR MCDOUGAL'S ATTORNEY IN LITTLE ROCK ARK JIM IS BEING CASTIGATED LIKE A WITCH IN THE SALEM WITCHTRIAL ERA 9401060024 940106 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO CORPORATE LIBRARIES TAKE A MORE ACTIVE ROLE IN BUSINESS BRIEFINGS SHEDDING THEIR IMAGE AS MERE WAREHOUSES OF DATA SOME COMPANY LIBRARIES ARE AMASSING AND PACKAGING UPTOTHEMINUTE DATA ON THE MARKET AND COMPETITION BANKERS TRUST'S LIBRARY PROVIDES A DAILY ALERTING SERVICE COMBINING SEC TAKEOVER FILINGS WITH MERGER NEWS IN A PACKAGE SENT ELECTRONICALLY TO 80 STAFFERS WORLDWIDE AT APPLE COMPUTER LIBRARIANS ARE STARTING TO SIT IN ON PROJECTTEAM MEETINGS SO THEY CAN PULL TOGETHER INFORMATION FOR EACH PHASE OF A PRODUCT'S DEVELOPMENT CASES LIKE APPLE'S ARE STILL THE EXCEPTION TO THE RULE BUT IT'S HAPPENING MORE AND MORE SAYS DONALD W KING A KNOXVILLE TENN CONSULTANT WHO HAS STUDIED SEVERAL CORPORATE LIBRARIES LIBRARY INVESTMENT HOWEVER IS LIKELY TO STAY LEVEL HE SAYS INSTEAD RESOURCES ARE REALLOCATED FOR INSTANCE FROM BUILDING A COLLECTION OF JOURNALS TO INCREASING STAFF NORTHERN TELECOM PLANS TO ENLIST ITS LIBRARIES TO ORGANIZE AND DISSEMINATE STRATEGIC PLANS AND OTHER INTERNAL DATA ORGANIC WINE IGNORED BY LIQUOR STORES FINDS FANS IN HEALTHFOOD OUTLETS WINES FROM ORGANICALLY GROWN GRAPES MAKE UP 33 OF WINE SALES AT BREAD AND CIRCUS A CAMBRIDGE MASS STORE PETER MCCANN THE STORE'S WINE BUYER CREDITS A WIDER SELECTION OF DECENT ORGANIC WINES FRESH FIELDS MARKETS' FIVE VIRGINIA STORES STOCK 20 ORGANIC VARIETIES WHILE ORGANICWINE SALES BARELY MAKE 10 MILLION THERE ARE VERY EDUCATED AND COMMITTED CONSUMERS WHO WANT ORGANIC WINE AS WELL AS ORGANIC FRUITS AND VEGETABLES SAYS STEVEN FRENKEL A DISTRIBUTOR IN NEW YORK AS FOR GROWERS ABOUT 62 HAVE 6000 ACRES CERTIFIED IN CALIFORNIA FOR ORGANIC WINEMAKING AND 40 MORE SEEK CERTIFICATION FOR ANOTHER 6000 ACRES SAYS BRIAN BAKER OF THE CALIFORNIA CERTIFIED ORGANIC FARMERS INC SANTA CRUZ CALIF IN 1992 ONLY 40 GROWERS AND 2000 ACRES WERE CERTIFIED APART FROM SHUNNING GRAPES SPRAYED WITH PESTICIDES AND HERBICIDES ORGANIC WINEMAKERS DON'T USE SULFITES WHICH PROLONG SHELF LIFE AND OTHER CHEMICAL ADDITIVES A SURETY THING IN 1994 BOND AGENTS EYE MORE BUSINESS BUT PROFITS MAY DIP SURETY BOND FIRMS WHICH MAKE FINANCIAL GUARANTEES CONTRACTORS NEED TO SECURE JOBS EXPECT MORE VOLUME THIS YEAR AS PLANS UNFOLD FOR WORK ON SUCH INFRASTRUCTURE AS ROADS AND BRIDGES SAYS CONSULTANT GRANT THORNTON BUT CONTRACTOR LOSSES WHICH CAN LAG MAY HIT AT THE SAME TIME THIS WOULD ERODE SURETY PROFITS SAYS J MARTIN HUBER OF THE NATIONAL ASSOCIATION OF SURETY BOND PRODUCERS AFTER THE 1980S BOND FIRMS TIGHTENED CREDIT CRITERIA AND THE 1990S HAVE BEEN PROFITABLE AS FOR CONTRACTORS THOSE WHO MADE IT THROUGH THE COMPETITIVE CASHPINCHED EARLY '90S MAY FIND THEIR CHANCES ARE ROSIER SAYS MR HUBER SOME MIDWEST CONTRACTORS HAVE THE BIGGEST BACKLOGS IN YEARS AS THEY REBUILD ROADS AND SUCH AFTER LAST YEAR'S FLOODS SAYS HAAS & WILKERSON INSURANCE AGENCY SHAWNEE MISSION KAN THE INSURER EXPECTS ITS SURETY PREMIUMS TO RISE 10 TO 15 THIS YEAR BUT COMPETITION IS KEEN AMONG CONTRACTORS AND CASHFLOW ILLS STILL LURK ADDS JERRY FALLEN OF HAAS & WILKERSON THE PROFIT MARGINS ARE AWFUL TIGHT FOR CONTRACTORS SAYS MR FALLEN WHICH CIGARETTE BRANDS ARE MORE LIKELY TO SET FIRE TO FURNITURE THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY SAYS IT HAS DEVISED TWO TESTS TO TELL JUST THAT THE TESTS CAN BE USED TO SET A STANDARD FOR A CIGARETTE'S IGNITION PROPENSITY SAYS THE FEDERAL AGENCY'S RICHARD GANN BAD WORDOFMOUTH TRAVELS FASTER AND FARTHER THANKS TO ELECTRONICBULLETIN BOARDS SAYS THE SERVICE EDGE NEWSLETTER IN MINNEAPOLIS MINN IT SUGGESTS BUSINESSES MAY HAVE TO RETHINK THE OLD RULEOFTHUMB THAT CONTENDS AN UNHAPPY CUSTOMER WILL TELL FIVE TO 10 PEOPLE ABOUT BAD SERVICE OR EXPERIENCES WITH A POORQUALITY PRODUCT A BUSINESS DEGREE IN NONPROFIT MANAGEMENT IS IN THE WORKS AT INDIANA UNIVERSITY WHICH CITES STUDENT INTEREST IN COMMUNITY SERVICE THE SCHOOL IS STARTING THE UNDERGRADUATE PROGRAM NEXT FALL BE THEIR GUEST SAY HOTELS AS MORE CONSIDER LEASING OUT THEIR DINING ROOMS MORE HOTELS ARE LIKELY TO WEIGH CEDING CONTROL OF THEIR DINING ROOMS AND GENERAL FOOD SERVICES TO OUTSIDE OPERATORS AS STAGNANT ROOM RATES FORCE THEM TO WRING PROFITS FROM OTHER AREAS IT'S BEEN DONE TO A LIMITED EXTENT SAYS BRUCE BALTIN OF PKF CONSULTING LOS ANGELES NOW IT'S GAINING MORE ATTENTION WITH LEASING HOTELS GET A STEADY INCOME FROM WHAT MIGHT HAVE BEEN A PROFIT DRAIN IN NEW YORK THE PARKER MERIDIEN JUST LEASED ITS DINING ROOM TO A JAPANESE RESTAURANT THE MARRIOTT IN THE WALL STREET AREA WEIGHED LEASING BUT NIXED IT THE HOTEL AND RESTAURATEUR COULDN'T AGREE ON WHO WOULD HANDLE ROOM SERVICE CAROL GREENBERG OF COOPERS & LYBRAND'S HOSPITALITY GROUP SAYS THAT WHILE UPSCALE HOTELS ARE LIKELY CANDIDATES FOR LEASING A DINING ROOM MIDMARKET PROPERTIES MAY OPT TO LEASE CATERING AND ROOM SERVICE AS WELL A SOLUTION TO THE FOOD AND BEVERAGE DRAIN MANY NEW HOTELS DON'T HAVE DINING ROOMS AT ALL SHE ADDS BRIEFS THE MEADOWLANDS CONVENTION CENTER IN NEW JERSEY WILL HOLD THE NATIONAL GAY AND LESBIAN BUSINESS EXPO IN APRIL THE MARKET FOR BUSINESSCARD READERS WHICH SCANS CARD DATA INTO PCS WILL RISE TO 200000 UNITS IN 1997 FROM 4000 IN 1993 SAYS BIS STRATEGIC DECISIONS IN MASSACHUSETTS 9401060020 940106 GE GETS 20 MILLION CONTRACT FAIRFIELD CONN GENERAL ELECTRIC CO'S GE INDUSTRIAL & POWER SYSTEMS UNIT SAID IT WON A 20 MILLION CONTRACT TO PROVIDE A GAS TURBINEGENERATOR AND OTHER SERVICES FOR MIDWEST POWER SYSTEMS INC DES MOINES IOWA THE 80MEGAWATT UNIT WILL BE INSTALLED AS UNIT 3 AT MIDWEST POWER'S PLEASANT HILL ENERGY CENTER GE POWER GENERATION SERVICES DEPARTMENT OVERLAND PARK KAN WILL PROVIDE INSTALLATION AND CONSTRUCTION SERVICES FOR THE PROJECT GE INDUSTRIAL & POWER SYSTEMS IS BASED IN SCHENECTADY NY 9401060017 940106 MARKETING & MEDIA ABC TAPS KAPLAN AS CHIEF PRODUCER OF EVENING NEWS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ABC NEWS'S LONGDOMINANT WORLD NEWS TONIGHT WITH PETER JENNINGS NAMED A NEW EXECUTIVE PRODUCER IN THE FACE OF INCREASINGLY STRONG RATINGS COMPETITION FROM NBC NIGHTLY NEWS EMILY ROONEY 42 YEARS OLD WHO JOINED THE SHOW ONLY LAST MAY FROM BOSTON'S WCVB WHERE SHE WAS NEWS DIRECTOR OF THE ABC AFFILIATE WILL BE SUCCEEDED BY RICHARD KAPLAN MR KAPLAN 46 IS CURRENTLY THE EXECUTIVE PRODUCER OF ABC'S PRIMETIME LIVE NEWSMAGAZINE BUT THERE HAVE BEEN WIDESPREAD REPORTS OF DISAGREEMENTS BETWEEN MR KAPLAN AND THE SHOW'S COANCHOR DIANE SAWYER MS ROONEY WHOSE JOB GAVE HER PRIMARY RESPONSIBILITY FOR THE NEWS BROADCAST WAS RESPECTED AS A LOCAL NEWS DIRECTOR IN BOSTON BUT HAD A TOUGH TIME MAKING THE TRANSITION TO THE NETWORK LEVEL ACCORDING TO STAFF MEMBERS IT JUST DIDN'T WORK OUT AN ABC SPOKESWOMAN SAID IT'S UNCLEAR WHETHER MS ROONEY THE DAUGHTER OF CBS 60 MINUTES PUNDIT ANDY ROONEY WILL REMAIN AT THE NETWORK ALTHOUGH SHE HAS BEEN OFFERED ANOTHER POSITION MS ROONEY WASN'T AVAILABLE FOR COMMENT NBC NIGHTLY NEWS WITH TOM BROKAW FROM GENERAL ELECTRIC CO UNIT NBC HAS IMPROVED 4 TO 96 OF THE VIEWING HOMES FROM 92 A YEAR EARLIER LAST WEEK'S RATINGS WERE EVEN CLOSER SHOWING ABC LEADING NBC BY A MERE TWOTENTHS OF A RATINGS POINT MR KAPLAN IS A FORMER EXECUTIVE PRODUCER OF NIGHTLINE AND THUS A LOGICAL CHOICE TO RUN WORLD NEWS TONIGHT HE DIDN'T RETURN CALLS FOR COMMENT AND THE ABC SPOKESWOMAN DECLINED TO DISCUSS WHETHER ANY OTHER CHANGES ARE PLANNED IN THE BROADCAST MR JENNINGS WAS ALSO NOT AVAILABLE MR KAPLAN WILL BE SUCCEEDED AT PRIMETIME LIVE BY PHYLLIS MCGRADY WHO WILL ADD THE POST TO HER CURRENT POSITION AS EXECUTIVE PRODUCER OF A PLANNED PRIMETIME NEWS HOUR TURNING POINT 9401060016 940106 MARKETING & MEDIA DAWN STEEL REJECTS OFFER TO HEAD TURNER FILM UNIT ATLANTA HOLLYWOOD PRODUCER DAWN STEEL HAS TURNED DOWN AN OFFER TO HEAD TURNER PICTURES A DIVISION OF TURNER BROADCASTING SYSTEM INC ACCORDING TO PEOPLE CLOSE TO MS STEEL TURNER BROADCASTING HAD BEEN NEGOTIATING WITH MS STEEL SINCE LAST FALL WITH CHAIRMAN RE TED TURNER PERSONALLY TRYING TO WOO THE 47YEAROLD FORMER PRESIDENT OF COLUMBIA PICTURES MS STEEL WAS IMPRESSED WITH MR TURNER BUT WAS A RELUCTANT BRIDE FROM THE BEGINNING ACCORDING TO ONE PERSON CLOSE TO THE SITUATION MR TURNER HAS BEEN SEEKING A HIGHPROFILE MOVIE EXECUTIVE TO LEAD TURNER PICTURES BUT MS STEEL WHO IS RAISING A YOUNG DAUGHTER WAS SAID TO BE PRIMARILY INTERESTED IN A KEY PRODUCTION ROLE AT TURNER THAT WOULD ALSO HAVE GIVEN HER AN UNUSUAL DEGREE OF AUTONOMY IN THE END ACCORDING TO THE PERSON CLOSE TO THE SITUATION SHE WANTED TO REMAIN AN INDEPENDENT PRODUCER HER LAST MOVIE WALT DISNEY CO'S COOL RUNNINGS WAS THE HIGHESTGROSSING MOVIE DISNEY RELEASED LAST YEAR SO FAR IT HAS TAKEN IN 618 MILLION MS STEEL AND OFFICIALS AT TURNER BROADCASTING DECLINED TO COMMENT 9401060015 940106 VIACOM NEARS PACT WITH BLOCKBUSTER ON PARAMOUNT BID BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL VIACOM INC AND BLOCKBUSTER ENTERTAINMENT CORP MADE PROGRESS TOWARD AN AGREEMENT FOR BLOCKBUSTER TO PUMP ADDITIONAL FUNDS INTO AN INCREASED VIACOM BID FOR PARAMOUNT COMMUNICATIONS INC ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION VIACOM CHAIRMAN SUMNER REDSTONE AND HIS ADVISERS WERE SAID TO BE SCRAMBLING TO ARRANGE THE NEW FINANCING WITH MORE THAN ONE OPTION UNDER CONSIDERATION FOR STRUCTURING ANY NEW BLOCKBUSTER INVESTMENT BUT VIACOM AND BLOCKBUSTER WERE ALSO DESCRIBED AS GETTING CLOSE TO AN AGREEMENT AFTER MEETING WITH BLOCKBUSTER CHAIRMAN H WAYNE HUIZENGA OVER THE PAST TWO DAYS VIACOM HAS UNTIL MIDNIGHT TOMORROW TO TOP A 99 BILLION 8240ASHARE OFFER FOR PARAMOUNT BY QVC NETWORK INC IF VIACOM DOESN'T BOOST ITS 93 BILLION 7784ASHARE BID AND HOLDERS OF 51 OF PARAMOUNT SHARES SUBMIT THEIR STOCK TO QVC THAT WOULD END THE PROTRACTED BIDDING WAR FOR PARAMOUNT THE PUBLISHING AND ENTERTAINMENT GIANT VIACOM NEEDS AT LEAST 600 MILLION MORE IN CASH TO SUCCEED TRADERS SAY TRADERS ARE FOCUSING ON THE AMOUNT OF CASH IN THE BIDS QVC IS OFFERING 92 A SHARE IN CASH FOR 51 OF PARAMOUNT COMPARED WITH VIACOM'S CURRENT CASH BID OF 85 A SHARE FOR A SIMILAR 51 STAKE THE AMOUNT OF CASH IS CONSIDERED IMPORTANT BECAUSE THE VALUE OF SECURITIES BEING OFFERED FOR THE REMAINDER OF PARAMOUNT FLUCTUATES FROM DAY TO DAY AND THE WINNING SUITOR'S STOCK IS EXPECTED TO SINK ONCE THE OUTCOME OF THE BIDDING WAR IS KNOWN PARAMOUNT SHARES WHICH FELL 1375 A SHARE EARLY IN THE DAY ON REPORTS THAT MR REDSTONE WAS LEANING AGAINST MAKING A HIGHER BID REVERSED COURSE AT MIDDAY ON MARKET REPORTS THAT VIACOM WOULD MAKE A HIGHER BID PARAMOUNT STOCK CLOSED UP 75 CENTS A SHARE AT 7825 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE VIACOM'S STOCK ACTIVITY ALSO SUGGESTED THAT VIACOM IS LIKELY TO RAISE ITS BID ITS CLASS B SHARES DROPPED 1 TO 4350 ON THE AMERICAN STOCK EXCHANGE QVC'S STOCK ROSE 75 CENTS TO 4050 ON THE NASDAQ STOCK MARKET ONE MARKET WATCHER SAID IT APPEARED THAT VIACOM MIGHT NOT BE READY TO RAISE ITS BID UNTIL TOMORROW A LASTMINUTE APPROACH THAT RUNS THE RISK OF CONFUSING SOME PARAMOUNT SHAREHOLDERS ABOUT THE VALUE OF A NEW BID TRADERS SAID VIACOM'S INVESTMENT BANKERS WERE WORKING THE PHONES YESTERDAY PROMOTING THE VALUE OF VIACOM'S STOCK TO PARAMOUNT SHAREHOLDERS AND WARNING THAT QVC'S STOCK PRICE COULD PLUMMET IF QVC SUCCEEDS IN ACQUIRING PARAMOUNT THE TRADERS SAID THAT WAS ANOTHER INDICATION THAT VIACOM PLANS TO COME BACK WITH A HIGHER BID THE BANKERS ALSO SUGGESTED THAT PARAMOUNT HOLDERS CONSIDER NOT TENDERING THEIR SHARES TO QVC EVEN IF VIACOM DOESN'T RAISE ITS BID A SUGGESTION MOST TRADERS REJECTED BECAUSE THEY WANT TO ENSURE THAT QVC OBTAINS THE 51 OF PARAMOUNT SHARES REQUIRED TO PROCEED WITH THE ACQUISITION IF QVC DOESN'T GAIN 51 VIACOM WOULD GET EXTRA TIME TO RAISE ITS BID 9401060014 940106 NEW JERSEY RESOURCES UNIT WALL TOWNSHIP NJ NEW JERSEY NATURAL GAS CO SAID STATE REGULATORS APPROVED A 75 MILLION OR 2 RATE INCREASE EFFECTIVE YESTERDAY THE UTILITY ORIGINALLY REQUESTED A 26 MILLION OR 7 INCREASE FROM STATE REGULATORS NEW JERSEY NATURAL GAS A UNIT OF NEW JERSEY RESOURCES INC SAID IT DIDN'T PLAN TO FILE FOR ANOTHER RATE INCREASE FOR AT LEAST TWO YEARS BARRING UNFORESEEN CIRCUMSTANCES NEW JERSEY NATURAL GAS WITH 300000 CUSTOMERS IN CENTRAL NEW JERSEY SAID THE IMPACT OF THE RATE INCREASE ON CUSTOMER BILLS WILL LARGELY BE OFFSET BY CHANGES IN STATE TAX LAW 9401060013 940106 THIS BLOB' MAKES TASTY SPACESUITS A NICE FILET MIGNON DR BROWN'S QUIVERING GOO WILL CREATE ANYTHING HE SAYS BUT SKEPTICS ABOUND BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS WHAT IS STRONGER THAN LEATHER MORE ABSORBENT THAN COTTON AND OCCASIONALLY MISTAKEN FOR HUMAN REMAINS TO R MALCOLM BROWN JR IT'S THE STUFF BILLIONDOLLAR DREAMS ARE MADE OF DR BROWN A UNIVERSITY OF TEXAS BOTANIST IS THE REIGNING EXPERT ON BACTERIAL CELLULOSE A DISTANT COUSIN OF PAPER AND WOOD THAT HE CLAIMS CAN BE FASHIONED INTO DOZENS OF PRODUCTS RANGING FROM ROCKET BOOSTERS TO PAPER FROM SUPERSTRONG PLYWOOD TO LOWCALORIE FAUX FILET MIGNON OH AND HE ALSO BELIEVES IT CAN HELP SAVE THE FORESTS AND REDUCE GLOBAL WARMING TRUE THE FLOPPY SLIMY SHEET OF WHITE GOO DR BROWN PROUDLY PRESENTS TO A VISITOR IN HIS DANK BASEMENT LABORATORY IN A UNIVERSITY BOTANY BUILDING ISN'T MUCH TO LOOK AT AND EVEN DR BROWN'S SUPPORTERS ARE SKEPTICAL ABOUT SOME OF HIS MOST OUTRAGEOUS CLAIMS IT JUST SOUNDS BUCK ROGERS SAYS JESSE DEMING A MANAGER WITH THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION HE SAYS DR BROWN PROVOKED WINCES AT NASA WHEN HE EARNESTLY SUGGESTED MAKING EDIBLE SPACESUITS SAYS MR DEMING DR BROWN IS NOT THE BEST SALESMAN YET NASA WAS SUFFICIENTLY IMPRESSED WITH DR BROWN'S FINDINGS TO BACK HIS RESEARCH AS THE US DEPARTMENT OF AGRICULTURE AND THE STATE OF TEXAS ALSO DO AND THE GELATINOUS GOO IS DEVELOPING A FOLLOWING ELSEWHERE ALREADY A BRAZILIAN COMPANY HAS DEVELOPED A TEMPORARY HUMANSKIN SUBSTITUTE OUT OF THE QUIRKY STUFF A BRITISH COMPANY HAS PATENTED A METHOD TO USE IT AS A FOOD TEXTURIZER WHILE SONY CORP USES IT FOR HIGHQUALITY AUDIO SPEAKERS TIMBER GIANT WEYERHAEUSER CO AND A JAPANESE CONSORTIUM HAVE POURED MILLIONS OF DOLLARS INTO RESEARCH TOUCHING OFF A WHOLE NEW KIND OF JAPANESEAMERICAN COMPETITION AND FOR DECADES THE SUBSTANCE HAS BEEN MADE INTO A TOFULIKE ASIAN DESSERT DELICACY CALLED NATA DE COCO THE JELLIED CUBES SOAKED IN COCONUT OIL SELL FOR 149 A JAR IN GOURMET GROCERY STORES BELIEVERS INSIST THE RUBBERY STUFF COULD SOMEDAY REPLACE TRADITIONAL CELLULOSE THE BASIC BUILDING BLOCK OF PLANTS AND TREES WHICH IS USED FOR EVERYTHING FROM THICKENING CANNED SOUPS TO MAKING CARDBOARD BOXES DR BROWN'S BACTERIAL CELLULOSE IS SIMILAR IN COMPOSITION BUT IS STRONGER IT IS CREATED BY FERMENTING SUGAR USING A PARTICULAR BACTERIA STRAIN SINCE HARVESTING TRADITIONAL CELLULOSE REQUIRES CUTTING DOWN TREES AND PLANTS HE SAYS HIS ALTERNATIVE COULD HELP SAVE FORESTS REDUCE GLOBAL WARMING AND CREATE A NEW BUSINESS FOR SUGARCANE FARMERS WHO COULD GROW THE STUFF IN FERMENTATION BINS I DON'T WANT THIS TO BE JUST CREATING CELLULOSE AND THAT'S IT DR BROWN SAYS I WANT TO CREATE A NEW INDUSTRY THAT IS A LOFTY GOAL FOR THE QUIVERING SUBSTANCE WHICH APPEARS IN NATURE WHEN ROTTING FRUIT OR OTHER TREACLY ITEMS COME IN CONTACT WITH THE BACTERIA STRAIN SOMETIMES ORDINARY PEOPLE EVEN BREED THE STUFF IN THEIR BASEMENTS OR GARAGES ALMOST ALWAYS YOU CAN BE SURE BY MISTAKE THERE WAS FOR EXAMPLE THE CRIMSON ORGANLIKE MASS FOUND ALONGSIDE A ROAD IN ST LOUIS TWO YEARS AGO DUBBED THE BLOB AFTER THE MANEATING BLOB FROM THE 1950S BMOVIE THRILLER IT HAD FOLDS CAVITIES AND ONE LARGE TENTACLE AND FOR 18 MONTHS IT DEFIED IDENTIFICATION POLICE ORDERED AN AUTOPSY FEARING IT WAS HUMAN REMAINS THE TABLOIDS RAISED THE SPECTER OF ALIENS SAMPLES WERE SENT TO PATHOLOGISTS ZOO OFFICIALS MEAT SCIENTISTS AND ASSORTED BOTANISTS BACTERIOLOGISTS AND MYCOLOGISTS EVEN THE VAUNTED WOODS HOLE OCEANOGRAPHIC INSTITUTE FINALLY THE OWNERS OF A FRENCH BISTRO SAW THE BLOB ON TELEVISION AND SHEEPISHLY CALLED TO CLAIM PARENTHOOD THEY EXPLAINED THE STUFF HAD GROWN IN A LARGE JUG WHEN THEY TRIED TO FERMENT WINE VINEGAR THEY THREW IT OUT AS THE REMAINS OF AN UGLY CULINARY CATASTROPHE A COUNTY HEALTH INVESTIGATOR ULTIMATELY TRACKED DOWN DR BROWN WHO CONFIRMED THE DIAGNOSIS IT WAS UNBELIEVABLE TO US THAT THE BLOB MIGHT BE THE SAME STUFF THAT COULD SAVE THE RAIN FORESTS MARVELS THE INVESTIGATOR BARRY DRUCKER CRITICS SCOFF AT THE IDEA THAT THE SLIMY STUFF COULD SAVE THE FORESTS BACTERIAL CELLULOSE IS TOO EXPENSIVE AND NOT SUPERIOR ENOUGH TO TRADITIONAL CELLULOSE TO EVER BECOME WIDELY USED THEY SAY IT COULD BECOME A COMMERCIAL PRODUCT BUT NOT ON A LARGE SCALE SAYS TOR TIMELL A CELLULOSE EXPERT AT THE COLLEGE OF ENVIRONMENTAL SCIENCE AND FORESTRY STATE UNIVERSITY OF NEW YORK AT SYRACUSE IT WILL NEVER REPLACE TREES JOHNSON & JOHNSON INC IN FACT ABANDONED EFFORTS TO FASHION MEDICAL PRODUCTS FROM BACTERIAL CELLULOSE AFTER CONCLUDING THAT IT DIDN'T OFFER ANY SIGNIFICANT ADVANTAGE OVER EXISTING CELLULOSE TRY TELLING THAT TO TRUE BELIEVERS THOUGH MR DEMING THE NASA MANAGER CHECKED OUT DR BROWN'S CLAIMS BY WRAPPING HIS ARM IN A BACTERIAL CELLULOSE BLANKET AND PLUNGING IT INTO A BEEHIVE HE CAME AWAY UNSTUNG AND CONVINCED IT'S STRONGER THAN STEEL LIGHTER THAN ALUMINUM AND HAS THE COMFORT INDEX OF COTTON HE REPORTS AND THE AGRICULTURE DEPARTMENT RECENTLY TESTED A SAMPLE OF DR BROWN'S LABMADE FABRIC AND FOUND IT IMPOSSIBLE TO RIP APART BY HAND I'VE NEVER SEEN ANYTHING LIKE IT SAYS NOELIE BERTONIERE A RESEARCH LEADER FOR THE USDA'S AGRICULTURAL RESEARCH SERVICE IN NEW ORLEANS I THINK IT'S GOT A FUTURE SOMEWHERE DR BROWN SEES THAT FUTURE AT EVERY TURN ON A RECENT DAY HE LAYS OUT HIS VISION IN HIS UNMARKED BASEMENT LAB WHERE HE FERMENTS BACTERIAL CELLULOSE IN 12FOOTLONG TRAYS THE LAB HAS THE FETID ODOR OF A BREWERY AND SHEETS OF WHITE GEL GLINT UNDER FLUORESCENT LIGHTS AS DR BROWN LOOKS AT THE STUFF THOUGH HE SEES ELEGANT ART CANVASES PERFECT SURGICAL GLOVES FILTERS FOR PURIFYING BLOOD TOUGHER BULLETPROOF CLOTHING MEDICAL IMPLANTS SUPERABSORBENTS THICKENERS FOR COSMETICS EVEN FAKE FILET MIGNON THE BOOKISH 54YEAROLD RESEARCHER SEEMS SUDDENLY TRANSFORMED AS HE TALKS ABOUT HIS PET PROJECT SPOUTING A STREAM OF FREEASSOCIATION IDEAS I KNOW THAT'S WAYOUT BUT THAT'S HOW I THINK HE BLUSHES AFTER TAKING OFF ON A TANGENT ABOUT THE POSSIBILITIES OF ROCKET CASINGS THAT COULD BE EATEN BY ASTRONAUTS ONCE THEY REACH MARS ADMITTEDLY SELLING ANYONE ELSE EVEN HIS BACKERS ON HIS VISIONS ISN'T ALWAYS EASY WHEN NASA'S MR DEMING SET UP A MEETING BETWEEN DR BROWN AND NASA'S SPACESUIT MANAGERS THE RESEARCHER WALKED IN WITH A PIECE OF BACTERIAL CELLULOSE THAT HE HAD DRIED AND DYED BLACK AND THAT LOOKED LIKE A CROSS BETWEEN A SKINNED ALLIGATOR AND TREE BARK ONE NASA OFFICIAL REARED BACK FROM THE TABLE AT THE SIGHT THE OFFICIAL COULDN'T SEE ANYTHING EXCEPT SOMETHING THAT WOULD SCRATCH ASTRONAUTS MR DEMING SAYS SHE NEVER SAW THE BEAUTY OF THE FINISHED PRODUCT 9401060012 940106 CREDIT MARKETS TREASURY YIELDS RESUME THEIR UPWARD TREND AS PLAYERS SELL ON JUMP IN COMMODITY PRICES BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE TREASURY BOND MARKET RETURNED TO ITS LOSING WAYS YESTERDAY POSTING MODERATE LOSSES THAT ERASED THE GAINS OF THE PREVIOUS SESSION THE MARKET SHOWED YOU THAT TUESDAY'S RALLY WAS THE EXCEPTION AND THAT THE MARKET IS STILL VERY DEFENSIVE SAID CARY LEAHEY SENIOR FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES CONTRIBUTING TO THE MARKET'S SOUR TONE WAS A RISE IN PRICES OF SOME COMMODITIES ESPECIALLY CRUDE OIL IN ADDITION TRADERS ARE WORRIED THAT TOMORROW'S KEY EMPLOYMENT REPORT WILL SHOW THAT THE ECONOMY CONTINUED TO EXPAND AT A FAST PACE DURING DECEMBER THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND FELL MORE THAN 3/4 POINT OR MORE THAN 750 FOR A BOND WITH A 1000 FACE VALUE TO 97 28/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 640 FROM 634 ON TUESDAY TREASURY NOTES AND MOST BILLS ALSO FELL IN PRICE ALTHOUGH NOT AS SHARPLY AS THE 30YEAR BOND THE 10YEAR NOTE FOR INSTANCE FELL MORE THAN 5/16 POINT PUSHING ITS YIELD TO 587 FROM 582 THE PRICE OF THE TWOYEAR NOTE MEANWHILE FELL JUST 1/16 POINT EDGING ITS YIELD UP TO 428 FROM 425 THE BOND MARKET ACTUALLY BEGAN THE DAY HIGHER AFTER EXTENDING TUESDAY'S RALLY IN OVERNIGHT TRADING HOWEVER THE MARKET WAS UNABLE TO SUSTAIN GAINS FOR LONG THERE JUST WASN'T ANY FOLLOWTHROUGH FROM TUESDAY SAID FRED LEINER A MARKET STRATEGIST AT CONTINENTAL BANK IN CHICAGO OF THE FACTORS CITED BY TRADERS FEBRUARY CRUDE OIL ON THE NEW YORK MERCANTILE EXCHANGE JUMPED 67 CENTS TO 1534 YESTERDAY WHILE THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX GAINED 057 POINT TO 22731 GOLD WHICH IS OFTEN REGARDED AS A BAROMETER OF INFLATION EXPECTATIONS ALSO SURGED IN PRICE DURING THE MORNING BUT THE TREND REVERSED ITSELF LEAVING GOLD LOWER ON THE DAY THE REAL STORY TODAY WAS OIL WHICH SKYROCKETED PRESSURING THE BOND MARKET THROUGHOUT THE SESSION SAID JACK MCINTYRE A SENIOR FIXEDINCOME ANALYST WITH TECHNICAL DATA A UNIT OF THOMSON FINANCIAL IF THIS IS THE START OF A BIGGER MOVE HIGHER IN OIL PRICES THEN THE BOND MARKET WILL REMAIN UNDER PRESSURE HOWEVER MOST PARTICIPANTS SAID THE RISE IN COMMODITY PRICES SIMPLY COMPLEMENTED THE MARKET'S PREDISPOSITION TO HEAD LOWER PEOPLE WERE TALKING ABOUT COMMODITY PRICES BUT I THINK IT WAS MORE AN EXCUSE THAN ANYTHING ELSE SAID CONTINENTAL BANK'S MR LEINER ADDING TO THE PRESSURE ON PRICES WERE FEARS THAT THE MARKET WOULD HAVE TO CONTEND WITH STILL MORE STRONG ECONOMIC NEWS IN COMING DAYS DEALERS ARE ESPECIALLY CONCERNED ABOUT WHAT THE LABOR DEPARTMENT'S EMPLOYMENT REPORT WILL SHOW TOMORROW MORNING TRADERS AND INVESTORS ARE GENERALLY HESITANT TO TAKE ON ANY NEW POSITIONS GOING INTO THE REPORT TOMORROW BECAUSE THERE IS SOME EXPECTATION THAT WE WILL SEE A RELATIVELY STRONG PAYROLL GAIN MR LEINER SAID MOST ECONOMISTS ARE FORECASTING A RISE IN NONFARM PAYROLL EMPLOYMENT OF ABOUT 225000 IF THE REPORT COMES IN AS EXPECTED IT WOULD MARK AN ACCELERATION FROM A GAIN OF 208000 REGISTERED IN NOVEMBER BUT A GROWING NUMBER OF TRADERS ARE WORRIED THAT ABOVECONSENSUS FORECASTS CALLING FOR A RISE IN PAYROLLS OF 300000 FOR DECEMBER WILL PROVE THE MOST ACCURATE WE HAVE A SIGNIFICANT ECONOMIC INDICATOR TOMORROW AND THAT MORE THAN ANYTHING ELSE IS GOING TO SET THE TONE AS FAR AS INTEREST RATES ARE CONCERNED FOR THE NEXT SEVERAL WEEKS SAID MATTHEW ALEXY MARKET STRATEGIST AT CS FIRST BOSTON INC THE RELUCTANCE TO TAKE ON NEW POSITIONS MEANT THE MARKET WAS DOMINATED BY SHORTTERM TRADERS YESTERDAY REAL RETAIL ACCOUNTS HAVE BEEN PRETTY MUCH ON THE SIDELINES AND THAT LEAVES THE MARKET WITH THE DEALERS AND MORESPECULATIVE ACCOUNTS SAID BOB MCCORKLE A SALESMAN AT SEATTLE NORTHWEST SECURITIES THE CORPORATE BOND MARKET WAS DEFINITELY BACK FROM THE HOLIDAYS WITH 26 BILLION OF DEBT PRICED THE DAY'S NEW ISSUES INCLUDED SHIPPING CONCERN AMERICAN PRESIDENT COS' 150 MILLION DEBT OFFERING INSURANCE CONCERN PROGRESSIVE CORP'S 200 MILLION DEAL BANK OF BOSTON CORP'S 300 MILLION OFFERING AND A 100 MILLION ISSUE FROM FIRST NATIONAL BANK OF MARYLAND A UNIT OF FIRST MARYLAND BANCORP AGENCY OFFERINGS INCLUDED THE STUDENT LOAN MARKETING ASSOCIATION'S 700 MILLION ISSUE AND A 429 MILLION ISSUE FROM THE FEDERAL HOME LOAN BANK SYSTEM TRADING IN THE INVESTMENTGRADE MARKET WAS ACTIVE AS PRICES FOLLOWED TREASURYS DOWN AND SPREADS CONTINUED TO TIGHTEN THE DIFFERENCE BETWEEN TREASURY AND CORPORATE BOND YIELDS ALSO KNOWN AS THE SPREAD NARROWED FOR THE DEBT OF STRONGERRATED COMPANIES BY 002 TO 003 PERCENTAGE POINT THAT WAS PRIMARILY DUE TO THE LACK OF NEW HIGHLY RATED PAPER IN THE MARKET TRADERS SAID SPREADS NARROWED BY AS MUCH AS 015 PERCENTAGE POINT FOR LOWERRATED TRIPLEB DEBT TRADERS SAID THE 975 COUPON BONDS OF AEROSPACE CONCERN MCDONNELL DOUGLAS CORP MATURING IN 2012 TRADED UP BY 5/8 TO 116 1/8 THE YIELD DROPPED TO 805 FROM 81 SIMILARLY USX CORP'S 9125 COUPON DEBENTURES MATURING IN 2013 TRADED UP BY 125 POINTS TO 103 THE YIELD DROPPED TO 879 FROM 893 THE MOVEMENT IN USX'S BONDS WAS AIDED BY AN INCREASE IN OIL PRICES SINCE A MAJORITY OF THE COMPANY'S PROCEEDS COME FROM ITS SUBSIDIARY MARATHON OIL CO ONE TRADER NOTED PRICES OF MUNICIPAL BONDS ENDED NARROWLY MIXED IN SECONDARY TRADING VALDEZ ALASKA'S 565 BONDS OF 2028 FINISHED UNCHANGED AT 98 3/4 TO YIELD 572 HOWEVER THE FLORIDA MUNICIPAL POWER AGENCY'S 510 BONDS OF 2025 DECLINED IN PRICE CAUSING THE YIELD TO RISE TO 545 FROM 543 TUESDAY MARKET PARTICIPANTS ARE APPARENTLY MOVING TO THE SIDELINES BEFORE THE RELEASE OF THE DECEMBER EMPLOYMENT DATA TOMORROW TRADERS SAID ALTHOUGH IT'S POSSIBLE THAT SALES OF MUNIS AND OTHER US BONDS MAY RESUME IF THE JOBS DATA ARE YET ANOTHER SET OF SURPRISINGLY STRONG STATISTICS SOME MUNI SPECIALISTS SAY IT'S FAR TOO SOON TO ABANDON HOPES FOR AN ENCOURAGING MUNI PERFORMANCE EARLY THIS YEAR BECAUSE OF HEAVY BOND CALLS AND REDEMPTIONS THIS MONTH THERE IS THE POTENTIAL FOR PLENTY OF REINVESTMENT ACCORDING TO SOME MARKET PARTICIPANTS MUCH OF THE BUYING WAS ALREADY DONE LAST MONTH AS EVIDENCED BY A STRONG MUNI RISE HOWEVER OTHER MUNI SPECIALISTS SAY FURTHER PURCHASES ARE AHEAD SECURITIES PRICES OF MORTGAGE SECURITIES ENDED HIGHER PARTLY DUE TO GOOD BIDDING FROM UNDERWRITERS LOOKING TO GATHER COLLATERAL REAL INTEREST FROM BUYERS OUTSIDE THE WALL STREET DEALER COMMUNITY HELPED TOO THOUGH IT WASN'T THE PREMIER CATALYST BUT OF THE BUYING FROM OUTSIDE THE STREET MANY FUND MANAGERS SEEM TO BE INTERESTED IN SOCALLED CUSP THOSE THOUGHT MOST LIKELY TO PREPAY OR BE CALLED EARLY DUE TO HOMEOWNER REFINANCING AND HIGHER COUPONS A BUYING TREND THAT HAS BEEN DEVELOPING OVER THE PAST COUPLE OF WEEKS AND SOME OF THESE BUYERS ARE MOVING MONEY OUT OF TREASURYS THOUGH SOME OF THESE COUPONS YIELD LESS THAN CURRENTCOUPON 65 ISSUES MANY MANAGERS WERE USED TO OWNING 7 TO 8 MORTGAGE BONDS AND MAY BE RETURNING TO THE LAST PLACE THEY WERE SEEN IN THE MARKET AS FOR THE UNDERWRITERS THEY NEEDED CURRENT COUPONS TO BACK THEIR NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS AND THERE SHOULD BE MORE SUCH BUYING IN THE SESSIONS AHEAD AS TWO NEW DEALS TOTALING 880 MILLION WERE ANNOUNCED YESTERDAY AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION INCREASED THE SIZE OF ITS SERIES 199410 REMIC TO 885 MILLION FROM THE PREVIOUS 600 MILLION AMONG HIGHER COUPONS GINNIE MAE 7 ISSUES ENDED 6/32 HIGHER AT 101 23/32 WHILE 75 ISSUES ENDED 5/32 HIGHER AT 103 27/32 9401060011 940106 BUSINESS BRIEF UNISYS CORP DEFENSE IS PLANNED AGAINST A LAWSUIT BY STATE WORKERS UNISYS CORP SAID IT WILL VIGOROUSLY DEFEND ITSELF AGAINST A 75 MILLION LAWSUIT FILED BY ONE RETIRED AND TWO CURRENT NEW YORK STATE WORKERS WHO ALLEGED THE COMPUTER COMPANY USED THEIR NAMES IN HUNDREDS OF FALSE EXPENSE VOUCHERS FILED FROM 1988 THROUGH 1991 THE LAWSUIT FILED IN NOVEMBER BY JOHN DIPALERMO DEPUTY COMMISSIONER IN CHARGE OF COMPUTER OPERATIONS FOR THE NEW YORK DEPARTMENT OF SOCIAL SERVICES ROBERT WAHRMAN COORDINATOR OF POLICY FOR THE COMPUTER UNIT AND EUGENE BOICE RETIRED DIRECTOR OF SYSTEMS DEVELOPMENT CAME TO LIGHT IN A STORY PUBLISHED YESTERDAY BY THE ALBANY TIMES UNION THE SUIT FILED IN STATE SUPREME COURT IN ALBANY AND TRANSFERRED LAST MONTH TO FEDERAL DISTRICT COURT THERE ALLEGES THAT UNISYS EMPLOYEES SUBMITTED HUNDREDS OF VOUCHERS DURING THE FOURYEAR PERIOD FALSLY NAMING THE THREE AS RECIPIENTS OF ALMOST DAILY ENTERTAINMENT BELIEVED TO BE MOSTLY MEALS PAID FOR BY UNISYS EMPLOYEES THE THREE MEN ALSO ALLEGE THAT UNISYS DIRECTED AND CONDONED THE SUBMISSION OF THE PHONY EXPENSE VOUCHERS J PETER HYNES A SPOKESMAN FOR UNISYS WHICH IS BASED IN BLUE BELL PA SAID THE LAWSUIT HAS NO MERIT 9401060010 940106 CORRECTIONS & AMPLIFICATIONS THE DOW JONES 20BOND AND INDUSTRIAL BOND AVERAGES HAVE BEEN RECALCULATED FOR DECEMBER BECAUSE OF UNUSUAL TRADING ACTIVITY IN ONE OF THE COMPONENT ISSUES THE REVISED DAYBYDAY RUNDOWN APPEARS IN THIS ISSUE ABSOLUTE ENTERTAINMENT INC SADDLE RIVER NJ REPORTED A LOSS OF 438000 IN THE FIRST NINE MONTHS OF 1993 YESTERDAY'S ENTERPRISE ARTICLE ABOUT A STOCKOPTION ACCOUNTING PROPOSAL INCORRECTLY STATED THAT THE LOSS WAS 438 MILLION THE JP MORGAN INDEX OF THE DOLLAR WAS EXPANDED TO 18 CURRENCIES NOT INCLUDING THE US FROM 15 CURRENCIES ON JAN 1 THE CURRENCIES OF FINLAND GREECE AND PORTUGAL WERE ADDED AN ARTICLE TUESDAY INDICATED THE INDEX FOLLOWING A CHANGE IN THE BASE PERIOD WAS STILL BASED ON 15 CURRENCIES 9401060009 940106 SMALL STOCK FOCUS ISSUES SHRUG OFF SINKING BOND MARKET TO END SESSION MODERATELY HIGHER BY LARRY BAUMAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCKS UNFAZED BY A SINKING BOND MARKET MANAGED TO END THE DAY MODERATELY HIGHER THE ABILITY OF THE SMALLCAPITALIZATION MARKET TO SEPARATE ITS FATE FROM THAT OF THE BOND MARKET IS SIGNIFICANT GIVEN THE RECENT STRONG CORRELATION BETWEEN THE TWO TRADERS AND ANALYSTS SAID THE SMALLCAP MARKET WAS ABLE TO RISE DESPITE THE MORE THAN 3/4 POINT DECLINE IN THE PRICE OF THE LONG BOND WHICH PUSHED ITS YIELD UP TO 640 SOME INVESTORS WERE REVERSING PREVIOUS EXPECTATIONS THAT STOCK PRICES WOULD DECLINE AND OTHERS ANTICIPATED THE STRENGTH OF THE ECONOMY IN THE FOURTH QUARTER WILL TRANSLATE INTO STRONG EARNINGS ESPECIALLY IN THE MORE CYCLICAL ISSUES THE RUSSELL 2000 INDEX OF SMALLCAPITALIZATION STOCKS TRADED ON THE MAJOR EXCHANGES AND OVER THE COUNTER WAS UP 105 OR 041 AT 25802 THE NASDAQ COMPOSITE INDEX ROSE 377 OR 049 TO 77805 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX AT 25931 WAS UP 044 OR 017 THE DOW JONES INDUSTRIAL AVERAGE GAINED 1492 OR 039 TO CLOSE AT A RECORD 379882 ON THE NASDAQ ADVANCERS LED DECLINERS 1690 TO 1388 ON TOTAL VOLUME OF 350 MILLION SHARES UP FROM 299 MILLION TUESDAY NATIONAL MARKET VOLUME WAS 293 MILLION COMPARED WITH 254 MILLION TUESDAY MOTHERS WORK POSTED A GAIN OF 3 1/4 OR 25 TO 16 1/4 AFTER THE MATERNITYAPPAREL RETAILER SAID IT AGREED TO PURCHASE ITS COMPETITOR PAGE BOY THE TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT THE COMPANY EXPECTS THE DEAL TO CLOSE WITHIN A MONTH IOMEGA POSTED A SHARP GAIN OF 1/2 OR 21 TO 2 15/16 AFTER THE COMPANY AND ARCHIVE CORP A UNIT OF CONNER PERIPHERALS SAID THEY SETTLED A PATENT DISPUTE THAT CENTERED ON COMPUTERRELATED TAPE DRIVE PRODUCTS GLYCOMED WAS UP 1 OR 14 AT 8 1/4 AFTER THE COMPANY CITING FAVORABLE TEST RESULTS SAID IT IS IN THE FINAL STAGES OF FILING AN INVESTIGATIONAL NEW DRUG APPLICATION FOR ITS ASTENSONE TREATMENT FOR VASCULAR RESTENOSIS FOLLOWING ANGIOPLASTY NEWS THAT FOURTHQUARTER FLYING LEVELS AT WORLD AIRWAYS WERE UP 40 FROM A YEAR EARLIER DROVE PARENT WORLDCORP'S STOCK UP 5/8 OR 11 TO 6 1/4 SUBMIRCON SYSTEMS SURGED 5/8 OR 10 TO 6 5/8 ON NEWS THE COMPANY GOT AN ORDER TO SUPPLY WET STATIONS WHICH ARE USED TO PRODUCE HIGHTECHNOLOGY SEMICONDUCTOR DEVICES TO NATIONAL SEMICONDUCTOR'S PLANTS IN ARLINGTON TEXAS AND IN WEST JORDAN UTAH SUBMICRON SAID THE MULTIMILLION DOLLAR ORDER INCLUDES ITS PREDIFFUSION CLEAN AND RESIST STRIP SYSTEMS REVCO DS ROSE 1 1/8 OR 78 TO 15 1/2 FOLLOWING MORGAN STANLEY'S INITIATION OF COVERAGE OF THE COMPANY WITH A BUY RATING CITING THE COMPANY'S STRONG SALES PROSPECTS SPS TECHNOLOGIES ROSE 1 3/8 OR 7 TO 21 1/8 AFTER THE COMPANY SAID IT EXPECTS TO RECORD A FOURTHQUARTER RESTRUCTURING CHARGE OF ABOUT 20 MILLION TO 25 MILLION THE COMPANY ALSO SAID IT IS REDUCING EMPLOYMENT BY MORE THAN 200 NONDIRECT EMPLOYEES IS REDUCING ITS EXECUTIVE PAYROLL AND OTHER NONESSENTIAL EXPENSES TO REDUCE OVERHEAD SPS EXPECTS IT WILL BE IN VIOLATION OF CERTAIN LOANAGREEMENT COVENANTS AS A RESULT OF THE RESTRUCTURING CHARGE BUT IT BELIEVES THE COST REDUCTIONS WILL BE FAVORABLY RECEIVED BY ITS LENDERS AND NEW COVENANTS WILL BE NEGOTIATED MOBILE TELECOMMUNICATIONS TECHNOLOGIES PLUNGED 9 5/8 OR 37 TO CLOSE AT 16 1/2 ON NEWS THAT AS PART OF A LONGTERM STRATEGIC BUSINESS PLAN IT WILL REDUCE ITS SKYTEL CORP UNIT'S PRICING WHICH IN TURN WILL REDUCE SKYTEL'S PROFITS IN 1994 THE COMPANY ADDED THAT SKYTEL'S PROFITS ARE EXPECTED TO REBOUND IN 1995 AND 1996 ON HIGHER VOLUME INTELLICALL FELL 1/2 OR 55 TO 8 5/8 AFTER THE COMPANY SAID IT EXPECTS TO REPORT LOSSES FOR THE FOURTH QUARTER AND YEAR INTELLICALL ATTRIBUTED THE EXPECTED LOSSES TO PROLONGED TESTING OF ITS INTELLIGENT PAY TELEPHONES IN INDONESIA AND ARGENTINA WHICH PREVENTED IT FROM MAKING PLANNED SHIPMENTS TO CUSTOMERS IN THOSE MARKETS SYMANTEC LOST 1 5/8 OR 10 FALLING TO 15 3/8 AFTER ROBERTSON STEPHENS & CO LOWERED ITS SHORTTERM RATING ON THE COMPANY TO HOLD FROM BUY WHILE MAINTAINING A LONGTERM BUY RATING ON THE STOCK ROBERTSON STEPHENS ALSO REDUCED ITS REVENUE PROJECTIONS FOR THE SECOND HALF OF FISCAL 1994 AND FOR FISCAL 1995 AND REVISED FISCAL 1994 PERSHARE EARNINGS ESTIMATES TO 38 CENTS FROM 40 CENTS DATA RACE WAS OFF 1/2 OR 51 TO 9 1/4 FOLLOWING AN ANNOUNCEMENT BY THE COMPANY THAT IT WILL RECORD AN ESTIMATED 6 MILLION PROVISION DUE TO EXCESS INVENTORY RESULTING FROM THE SHORT LIFE CYCLE OF CERTAIN NOTEBOOK COMPUTERS AND LOWERTHANEXPECTED MODEM SALES AND TO COMPONENT PRICE CHANGES FOR INTEGRATED CIRCUITS DATA RACE ALSO SAID IT ANTICIPATES ITS SECONDQUARTER REVENUE WILL BE BELOW FIRSTQUARTER REVENUE OF 74 MILLION AND EXPECTS AN OPERATING LOSS FOR THE SECOND QUARTER ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE NOTED THAT SMALLCOMPANY STOCKS HAD TAKEN IT ON THE CHIN AT THE CLOSE OF 1993 AND SAID WE'RE GETTING A BOUNCE OFF OF THAT HE SAID A SIGNIFICANT PORTION OF THE DAY'S GAINS WERE BROUGHT ON BY WIDESPREAD SHORTCOVERING MR ANTOLINI SAID THE STRENGTH OF THE SMALLCAP MARKET IN THE FACE OF RISING INTEREST RATES FEARS OF A RESURGENCE OF INFLATION AND THE POTENTIAL FOR A TIGHTENING OF MONETARY POLICY CAUGHT MANY MARKET PARTICIPANTS BY SURPRISE HE ADDED THAT THE RESPONSE TO THE DAY'S EARLY GAINS HELPED FUEL THE MARKET AS PEOPLE DIDN'T WANT TO MISS OUT ON THE RALLY HE ALSO NOTED THAT THE DAY'S GAINS CAME ON STRONG VOLUME REFLECTING A POTENTIAL FOR THE RALLY TO SUSTAIN ITSELF CLAUDIA MOTT DIRECTOR OF SMALLCAP RESEARCH AT PRUDENTIAL SECURITIES SAYS MANY SMALLCOMPANY STOCKS ARE BENEFITING FROM SEASONAL FACTORS SHE SAID THAT IN ADDITION TO BOUNCING BACK FROM MONDAY'S BEATING SMALLCOMPANY STOCKS IN GENERAL DO BETTER AT THE START OF THE YEAR 9401060008 940106 BUSINESS BRIEF INTERGRAPH CORP PRETAX CHARGE OF 70 MILLION IS PLANNED FOR LATE THIS YEAR INTERGRAPH CORP WILL TAKE A 70 MILLION PRETAX RESTRUCTURING CHARGE IN THIS YEAR'S FOURTH QUARTER TO MOVE ITS EUROPEAN MANUFACTURING AND DISTRIBUTION FACILITY TO ITS HEADQUARTERS IN HUNTSVILLE ALA THE COMPANY A MAJOR PRODUCER OF COMPUTER GRAPHICS SYSTEMS SAID THE MOVE IS EXPECTED TO SAVE THE COMPANY 30 MILLION A YEAR BEGINNING THIS YEAR INTERGRAPH PLANS LATER THIS MONTH TO RELEASE FULL OPERATING RESULTS FOR LAST YEAR'S FOURTH QUARTER THE COMPANY SAID IT EXPECTS REVENUE OF 270 MILLION TO 275 MILLION COMPARED WITH YEAREARLIER REVENUE OF 3073 MILLION 9401060007 940106 BUSINESS BRIEF ZYGO CORP STOCKHOLDERS' PACT THAT PUT CONTROL IN FEW HANDS ENDS ZYGO CORP MIDDLEFIELD CONN SAID IT TERMINATED A STOCKHOLDERS' AGREEMENT THAT ESSENTIALLY HAS KEPT CONTROL OF THE COMPANY IN THE HANDS OF FIVE KEY SHAREHOLDERS SINCE DECEMBER 1983 THE FIVE HOLDERS WHICH INCLUDED THREE EXECUTIVES WESLEYAN UNIVERSITY AND CANON INC TOGETHER CONTROLLED 49 OF THE COMPANY ESSENTIALLY CONTROLLING BOARD ELECTIONS AND OTHER SHAREHOLDER ACTIONS ZYGO WHICH MAKES HIGHTECHNOLOGY DEVICES TO MEASURE FINE GLASSWORK AND COMPUTERRELATED MATERIALS SAID IT FELT THE STOCKHOLDERS' AGREEMENT WAS SUPPRESSING THE MARKET VALUE OF THE COMPANY IN NASDAQ STOCK MARKET TRADING YESTERDAY ZYGO SHARES GAINED 375 CENTS TO 8125 9401060005 940106 WHO'S NEWS FIRST BANK SYSTEM INC FIRST BANK SYSTEM INC MINNEAPOLIS PHILIP G HEASLEY 44 YEARS OLD EXECUTIVE VICE PRESIDENT AND PRESIDENT OF THE COMPANY'S RETAILPRODUCT GROUP WAS NAMED A VICE CHAIRMAN OF THIS REGIONAL BANKHOLDING COMPANY MR HEASLEY CONTINUES AS PRESIDENT OF THE RETAIL PRODUCT GROUP SUSAN E LESTER 37 SENIOR VICE PRESIDENT WAS NAMED AN EXECUTIVE VICE PRESIDENT AND CONTINUES AS CONTROLLER 9401060003 940106 BUSINESS BRIEF SMALL COMPUTERS GOT BIGGER MARKET SHARE IN 1993 REPORT SAYS SALES OF SMALL COMPUTERS CONTINUED TO ROCKET LAST YEAR AT THE EXPENSE OF MIDSIZED COMPUTERS AND MAINFRAMES ACCORDING TO A REPORT BY DATAQUEST INC THE SAN JOSE CALIF MARKETRESEARCH FIRM SAID WORLDWIDE SALES OF PERSONAL COMPUTERS ROSE 16 TO 663 BILLION IN 1993 WHILE WORKSTATION SALES WERE UP 86 TO 101 BILLION REVENUES FROM MAINFRAMES MULTIMILLION DOLLAR COMPUTERS TRADITIONALLY USED BY COMPANIES DROPPED 95 TO 211 BILLION DATAQUEST SAID ALL ITS 1993 NUMBERS ARE PRELIMINARY IN MAINFRAMES NO 1 INTERNATIONAL BUSINESS MACHINES CORP HAD 106 BILLION REVENUE LAST YEAR OR 504 OF THE MARKET DOWN FROM 122 BILLION OR 523 OF THE MARKET IN 1992 NO 2 FUJITSU LTD POSTED THE BIGGEST GAIN AGAINST IBM WITH 75 OF THE MAINFRAME MARKET IN 1993 UP FROM 67 IN 1992 IN WORKSTATIONS NO 1 SUN MICROSYSTEMS INC LOST MARKET SHARE FOR THE FIRST TIME SUN'S REVENUE IN THE SEGMENT EDGED UP TO 322 BILLION LAST YEAR FROM 299 BILLION IN 1992 BUT ITS SHARE FELL TO 318 FROM 321 HEWLETTPACKARD CO'S SALES ROSE TO 22 BILLION LAST YEAR GIVING IT A 226 MARKET SHARE FROM 17 BILLION IN 1992 OR 188 OF THE MARKET IN PCS IBM WAS NO 1 WITH 9 BILLION OF PC REVENUE OR 131 OF THE MARKET UP FROM 74 BILLION OR A 131 SHARE IN 1992 NO 2 APPLE COMPUTER INC'S SALES ROSE TO 727 BILLION LAST YEAR OR 11 OF THE MARKET FROM 605 BILLION IN 1992 OR A 106 SHARE THE BIGGEST LOSERS IN THE PC SEGMENT WERE SMALL CLONE MAKERS WHICH STILL DOMINATE THE MARKET THEIR REVENUES ROSE TO 3705 BILLION LAST YEAR FROM 3548 BILLION IN 1992 BUT THEIR MARKET SHARE SLIPPED TO 559 FROM 621 DATAQUEST SAID 9401060002 940106 WHO'S NEWS EXGM HEAD STEMPEL JOINS BOARDS OF ENERGY CONVERSION AND UNIT DETROIT ROBERT C STEMPEL WHO LOST HIS JOB AS CHAIRMAN OF GENERAL MOTORS CORP BECAUSE HE WASN'T TURNING THE AUTO MAKER AROUND FAST ENOUGH IS JOINING THE BOARD OF A PERENNIAL MONEY LOSER ENERGY CONVERSION DEVICES INC MR STEMPEL ALSO WAS NAMED A DIRECTOR OF ENERGY CONVERSION'S SUBSIDIARY OVONIC BATTERY COMPANY INC WHICH IS TRYING TO DEVELOP BATTERIES FOR AN ELECTRIC CAR BOTH COMPANIES ARE LED BY CHIEF EXECUTIVE STANFORD OVSHINSKY AN INVENTOR WHOSE COMPANIES FOR YEARS HAVE BEEN ON THE CUSP OF EITHER TECHNOLOGICAL BREAKTHROUGH OR FINANCIAL DISASTER ENERGY CONVERSION DEVICES HASN'T PRODUCED AN ANNUAL NET PROFIT IN MORE THAN A DECADE AND AT TIMES REPORTED A NEGATIVE NET VALUE BUT MR STEMPEL SAID THAT ONLY WILL MAKE HIS ROLE AS A DIRECTOR MORE CHALLENGING I TEND TO LOOK AT IT FROM A FUTURISTIC PERSPECTIVE HE SAID IF WE ALL LOOK BACK ALL THE TIME WE'LL NEVER ACCOMPLISH ANYTHING MR STEMPEL SAID HE WAS ATTRACTED TO THE COMPANY BECAUSE OF ITS PROMISING BATTERY TECHNOLOGY MR OVSHINSKY SAID HE HAS A BATTERY THAT MAKES ELECTRIC VEHICLES PRACTICAL AND POSSIBLE HE MAINTAINED THAT WHILE ACCOUNTING RULES MAY REQUIRE HIS COMPANY TO REPORT ITS RESULTS AS LOSSES THEY ARE NOT LOSSES THEY ARE INVESTMENTS DESPITE SKEPTICISM IN SOME QUARTERS MR OVSHINSKY ISN'T ALONE IN HIS BELIEF IN THE PROMISE OF HIS BATTERY THIS WEEK ENERGY CONVERSION DEVICES AND OVONIC REACHED A 13 MILLION AGREEMENT WITH HONDA MOTOR CO TO BUILD PROTOTYPE BATTERIES FOR AN ELECTRIC VEHICLE OVONIC ALSO HAS A CONTRACT WITH A CONSORTIUM CREATED BY THE BIG THREE CAR COMPANIES TO DEVELOP BATTERIES 9401060001 940106 WHAT'S NEWS BUSINESS AND FINANCE KMART ANNOUNCED A PRETAX CHARGE OF 13 BILLION MAINLY FOR REPLACING 500 DISCOUNT STORES WITH LARGER ONES IN AN ADMISSION THAT MANY OF ITS STORES AREN'T BIG ENOUGH TO COMPETE THE RETAILER ALSO PLANS TO SELL TO THE PUBLIC 20 TO 30 STAKES IN ITS FOUR SPECIALTY UNITS KMART SAID IT EXPECTS EARNINGS IN THE FISCAL FOURTH QUARTER AND YEAR TO BE WELL BELOW YEARAGO LEVELS DISCLOSING THAT HOLIDAY SALES WERE LOWER THAN EXPECTED BORDEN'S STOCK DECLINED 13 ON DISAPPOINTMENT WITH THE FIRM'S RESTRUCTURING PLAN WHICH CALLS FOR THE SALE OF ITS NORTH AMERICAN SNACKS LINE AND WILL RESULT IN A 650 MILLION CHARGE INVESCO FUNDS GROUP FIRED STAR PORTFOLIO MANAGER JOHN KAWESKE FOR ALLEGEDLY VIOLATING ITS RULES ABOUT REPORTING PERSONAL SECURITIES TRADES PRUDENTIAL SECURITIES NAMED LEE SPENCER A FORMER SEC OFFICIAL INTERIM GENERAL COUNSEL ACTING QUICKLY TO BRING IN AN OUTSIDER NOT ASSOCIATED WITH ITS LIMITEDPARTNERSHIP TROUBLES THE CLINTON ADMINISTRATION IS SET TO SLASH CHINA'S TEXTILE QUOTAS BY AS MUCH AS ONETHIRD WHILE SIMULTANEOUSLY LIFTING A BAN ON THE SALE OF TWO COMMUNICATIONS SATELLITES TO BEIJING THE MORTGAGEREFINANCING BOOM HAS SLOWED SHARPLY AFTER SOARING TO RECORD LEVELS LAST YEAR AS INTEREST RATES PLUNGED A WEEKLY INDEX OF REFINANCING ACTIVITY LAST WEEK STOOD 65 BELOW ITS HIGH REPORTED IN SEPTEMBER AN ACCORD WAS REACHED IN MELLON'S SUIT ACCUSING SMITH BARNEY OF DIVERTING BUSINESS AWAY FROM BOSTON CO GM'S SATURN UNIT REPORTED A 1993 PROFIT WITH SOME BIG QUALIFICATIONS SETTING THE STAGE FOR A STRUGGLE WITHIN GM OVER WHETHER TO INVEST ANOTHER 1 BILLION OR MORE IN THE PROJECT HONDA'S ACURA WILL LAUNCH A MODEL IN 1995 THAT WILL BE ENTIRELY DESIGNED AND BUILT IN THE US SEPARATELY VOLKSWAGEN IS STARTING A CAMPAIGN TO MORE THAN DOUBLE ITS US SALES THIS YEAR HEWLETTPACKARD AGREED TO ACQUIRE A 15 STAKE IN TALIGENT THE SOFTWARE JOINT VENTURE OF IBM AND APPLE IVAX PLANS TO BUY MCGAW FOR ABOUT 440 MILLION IN STOCK MARKING ANOTHER CONSOLIDATION IN THE HEALTHCARE FIELD AT&T'S PLAN TO BUY MCCAW MAY HAVE HIT A SNAG AFTER THE JUSTICE DEPARTMENT SAID AT&T SHOULD SEEK SPECIAL PERMISSION FROM A FEDERAL COURT JP MORGAN'S VICE CHAIRMAN ROBERTO MENDOZA APPEARS TO HAVE BEEN THE CHIEF PROPONENT BEHIND ITS FAILED STAKE IN BANCO ESPANOL DE CREDITO BANESTO OVERSTATED ITS PERFORMANCE IN 1991 AND 1992 AND ITS REORGANIZATION PLAN WAS COMPLETELY UNREALISTIC SPAIN'S CENTRAL BANK REPORTED AMONG ITS REASONS FOR OUSTING THE BANK'S CHAIRMAN AND BOARD RR DONNELLEY WAS ORDERED TO SHED OPERATIONS IT PAID 4875 MILLION TO ACQUIRE OVER THREE YEARS AGO A SETBACK IN ITS FEDERAL ANTITRUST DISPUTE NEW ORDERS FOR FACTORY GOODS ROSE 14 IN NOVEMBER THE FOURTH CONSECUTIVE MONTHLY INCREASE THE PICKUP WHICH REFLECTS GAINS IN NEARLY EVERY MAJOR INDUSTRY SUGGESTS A SIGNIFICANT RISE IN FACTORY JOBS WILL SOON FOLLOW THE SELLING PACE OF NORTH AMERICANBUILT VEHICLES SLID IN THE FINAL 10 DAYS OF DECEMBER TO THE LOWEST LEVEL SINCE THE SUMMER LARGELY REFLECTING SLOWER SALES OVER THE HOLIDAY SEASON JAPANESE STOCKS JUMPED 24 AS EXPORT PROSPECTS BRIGHTENED DUE TO A WEAKENING YEN THE NIKKEI 225STOCK AVERAGE SURGED 41374 TO 1778348 THE ADVANCE WAS LED BY MAJOR EXPORTING SECTORS SUCH AS AUTOS AND ELECTRONICS BONDS LEHMAN BROTHERS TREASURY INDEX 548802 OFF 2260 COMMODITIES OIL 1534 A BARREL UP 67 CENTS DOW JONES FUTURES INDEX 14122 OFF 048 SPOT INDEX 12846 UP 046 DOLLAR 11290 YEN UP 020 17395 MARKS UP 00040 9401050188 940105 TEXAS JOURNAL ECONOMIC FOCUS THE SOOTHSAYERS SAY IT WILL BE A HAPPY NEW YEAR BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL NINETEEN NINETYFOUR IS ONLY FIVE DAYS OLD BUT IT'S ALREADY SHAPING UP AS A PRETTY HEALTHY YEAR FOR THE TEXAS ECONOMY THAT IS TO HEAR ECONOMIC FORECASTERS TALK ABOUT IT WITH THE NORTH AMERICAN FREE TRADE AGREEMENT OFFICIALLY UNDER WAY THE US ECONOMY FINALLY PICKING UP STEAM AND HOUSING CONSTRUCTION SHOWING NO SIGN OF SLACKENING ECONOMISTS ARE OPTIMISTIC ABOUT THE OUTLOOK FOR TEXAS THIS YEAR EVEN WITH OIL PRICES AT A FIVEYEAR LOW THE CONSENSUS AMONG 11 ECONOMISTS POLLED BY TEXAS JOURNAL IS THAT THE STATE WILL OUTPERFORM THE NATION IN JOB CREATION PERSONALINCOME GROWTH AND RETAILSALES GAINS HERE ARE SOME OF THEIR COMMENTS TAMARA PLAUT CHIEF ECONOMIST TEXAS COMPTROLLER OF PUBLIC ACCOUNTS AUSTIN I THINK ALL THE RISKS TO MY FORECAST ARE ON THE UPSIDE SAYS DR PLAUT WHO SAYS A BIGGERTHANEXPECTED BOUNCE IN THE US ECONOMY WOULD RAISE TEXAS EMPLOYMENT GROWTH BEYOND HER PROJECTION OF 17 I DON'T REALLY THINK OIL PRICES WILL BE A BIG FACTOR UNLESS WE HAVE A REALLY HUGE DROP SHE ADDS M RAY PERRYMAN PRESIDENT PERRYMAN CONSULTANTS INC WACO BUSINESS SERVICES TELECOMMUNICATIONS AND CONSUMER ELECTRONICS WILL BE SOME OF THE HOT SECTORS THIS YEAR SAYS DR PERRYMAN HE ALSO EXPECTS THE HEALTHCARE INDUSTRY TO CONTINUE ITS RAPID EXPANSION FUELED BY TEXAS' LARGE POPULATION OF THE VERY YOUNG AND THE VERY OLD JAMES F SMITH PROFESSOR OF FINANCE UNIVERSITY OF NORTH CAROLINA CHAPEL HILL NC NAFTA WILL EASILY ADD A POINT TO TEXAS GROSS STATE PRODUCT GROWTH IN 1994 CONTENDS DR SMITH WHO PREDICTS A BOOM IN TRANSPORTATIONRELATED JOBS AS WELL AS A BIG JUMP IN FINANCIALSERVICE JOBS ALL ASSOCIATED WITH INCREASED ECONOMIC ACTIVITY WITH MEXICO JARED HAZLETON DIRECTOR OF THE CENTER FOR BUSINESS AND ECONOMIC ANALYSIS TEXAS A&M COLLEGE STATION I THINK TEXAS IS GOING TO BE NO MORE THAN AVERAGE THIS NEXT YEAR COMPARED WITH THE NATION SAYS DR HAZLETON CITING LOW OIL PRICES AND STILLSHAKY CONSUMER CONFIDENCE HE ADDS IT'S AMAZING TO ME WE'VE BEEN ABLE TO DO AS WELL AS WE HAVE HOUSTON'S BEEN AS FLAT AS A FRITTER AND DALLAS ISN'T MUCH BETTER MICHAEL COSGROVE PRINCIPAL ECONOCLAST INC DALLAS SAUDI ARABIA WILL COME TO THE AID OF TEXAS IN 1994 BY CUTTING BACK OIL PRODUCTION TO BOOST PRICES PREDICTS DR COSGROVE THE RESULT OIL PRICES WILL SNAP BACK TO 20 A BARREL BY YEAREND JON HOCKENYOS MANAGING PARTNER TEXAS PERSPECTIVES INC AUSTIN YOU'RE NOT LOOKING AT REAL SUBSTANTIAL CHANGE FROM 1993 MR HOCKENYOS SAYS THE UNEMPLOYMENT RATE IS RELATIVELY HIGHER THAN THE PERFORMANCE OF THE ECONOMY WOULD SUGGEST BECAUSE WE'RE STILL SEEING LAYOFFS CONSOLIDATIONS RESTRUCTURINGS AND MOVEMENT AWAY FROM WAGE AND SALARY JOBS VICTOR GRADO ASSOCIATE ECONOMIST DRI/MCGRAWHILL LEXINGTON MASS ONE THING THAT'S DIFFERENT IN TEXAS THAN ELSEWERE IS HOW WELL THE MANUFACTURING SECTOR IS DOING MR GRADO SAYS HE ADDS THOUGH THAT SOME NONDURABLE MANUFACTURING SUCH AS IN THE APPAREL INDUSTRY SHOULD SEE SOME SLOWING DUE TO COMPETITION FROM MEXICO MR GRADO ALSO EXPECTS HOUSING STARTS TO LEAP 23 IN PART DUE TO LOWINCOMEDEVELOPMENT PROJECTS IN THE BORDER AREA KEITH R PHILLIPS ECONOMIST FEDERAL RESERVE BANK OF DALLAS CORPORATE RESTRUCTURINGS CONTINUE TO HOLD BACK EMPLOYMENT GROWTH SAYS MR PHILLIPS WHO EXPECTS THE NUMBER OF JOBS TO INCREASE JUST 22 THIS YEAR ROUGHLY THE SAME AS 1993 AND FAR BELOW THE 32 AVERAGE DURING THE PAST 25 YEARS EDWARD MCCLELLAND ECONOMIC CONSULTANT DALLAS I THINK THE WEAKEST QUARTER WILL BE THE SECONDQUARTER WHEN HIGHER TAX PAYMENTS COME DUE LARGELY FROM THE RICH DR MCCLELLAND SAYS A MOVEMENT UP IN INTEREST RATES MAY STIMULATE HOME BUYING AND NEWCAR SALES IT MIGHT PROMPT SOME PEOPLE TO JUMP ON THE BANDWAGON BEFORE THE WAGON MOVES OUT OF TOWN ALL FIGURES ARE AVERAGE GROWTH RATES FOR 1994 VS 1993 EXCEPT FOR THE UNEMPLOYMENT RATE AND THE PRICE OF OIL 9401050186 940105 TEXAS JOURNAL ALL BIDDERS ARE WELCOME HERE WELL ALMOST ALL BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL THE HTC RANCH IN TYLER THE NOTORIOUS STOMPING GROUND OF DALLAS JET SETTER CONNIE C CHIP ARMSTRONG JR IS HEADED FOR THE AUCTION BLOCK THE 1700ACRE RANCH INCLUDING A LAKEFRONT MANSION FOUR GUEST HOUSES AND A HELICOPTER PAD IS ONE OF THE LAST REMNANTS OF MR ARMSTRONG'S LUXURIOUS LIFESTYLE AS OWNER OF HAMILTON TAFT & CO A CALIFORNIA TAX PROCESSOR THAT FILED FOR BANKRUPTCY PROTECTION IN 1991 THE RANCH WHICH AN ATTORNEY FOR MR ARMSTRONG CONCEDES WAS BOUGHT WITH COMPANY FUNDS WAS DEEDED BY MR ARMSTRONG TO THE BANKRUPTCY ESTATE THIS RANCH IS TEXAS SAYS WILLIAM BONE PRESIDENT OF HOUSTONBASED NATIONAL AUCTION GROUP WHICH WILL HOLD THE AUCTION NEXT MONTH IT'S THE EXTRAVAGANCE OF THE '80S THE BANKRUPTCY TRUSTEE FOR HAMILTON TAFT HOPES TO COLLECT SOME 85 MILLION FOR THE RANCH POTENTIAL BUYERS WILL HAVE TO POST A 250000 CASHIER'S CHECK TO QUALIFY FOR THE AUCTION BUT THIS AUCTION COULD BE PARTICULARLY INTERESTING BECAUSE MR ARMSTRONG HIMSELF NOW THE MAJORITY SHAREHOLDER OF COMPUCHECK DALLAS MAY SHOW UP FOR THE BIDDING HE'S LOOKING AT IT WITH INTEREST SAYS A SPOKESMAN FOR MR ARMSTRONG BUT HIS PLANS AREN'T FORMULATED AN APPEARANCE BY MR ARMSTRONG IS CERTAIN TO INTEREST ATTORNEYS TRYING TO SETTLE THE HAMILTON TAFT BANKRUPTCY THREE WEEKS AGO A 293 MILLION JUDGMENT IN THE ESTATE'S FAVOR AGAINST MR ARMSTRONG FOR DIVERSION OF HAMILTON TAFT FUNDS WAS REGISTERED IN US DISTRICT COURT IN DALLAS WHICH MAY PERMIT THE ESTATE TO SEIZE MR ARMSTRONG'S TEXAS ASSETS IF THERE ARE ANY MR ARMSTRONG IS APPEALING THE JUDGMENT IF HE HAD THE MONEY TO BUY THE RANCH WE WOULD SAY HE WOULD HAVE THE MONEY TO APPLY TOWARD THE 29 MILLION HE OWES US SAYS PATRICIA MAR THE ATTORNEY FOR THE HAMILTON TAFT BANKRUPTCY TRUSTEE AND IF MR ARMSTRONG SHOWS UP WITH THE 250000 CASHIER'S CHECK WE'VE BEEN WAITING SINCE APRIL FOR HIM TO MAKE GOOD ON A 235000 CHECK THAT BOUNCED MS MAR SAYS 9401050185 940105 TECHNOLOGY & HEALTH APPLE PLANS TO OFFER ONLINE' SERVICE IN BID TO GAIN STEADY REVENUE STREAM BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC HOPES TO GAIN A RELIABLE SOURCE OF REVENUE FROM A NEW COMPUTER ONLINE SERVICE EVEN THOUGH IT FACES THE SAME HIGH STARTUP COSTS AND OTHER HURDLES THAT HAVE TROUBLED ESTABLISHED SERVICE PROVIDERS TODAY THE COMPANY FORMALLY ANNOUNCES ITS EWORLD ONLINE SERVICE WHICH WILL ALLOW USERS OF APPLE'S MACINTOSH COMPUTERS TO DIAL INTO AN INFORMATION BASE CONTAINING NEWS BULLETINS TRAVELRESERVATION SERVICES AND SHOPPING CATALOGS APPLE IS A RELATIVE LATECOMER IN THE RAPIDLY GROWING MARKET FOR ONLINE NETWORKS WHICH PROVIDE SERVICES TO ABOUT 65 MILLION PC USERS BUT ALTHOUGH PRODIGY AND COMPUSERVE DOMINATE THE INDUSTRY WITH ABOUT TWO MILLION SUBSCRIBERS EACH ONLY A SMALL FRACTION OF PCS ARE CURRENTLY HOOKED UP TO SUCH SERVICES ANALYSTS SAID AS MORE PC USERS HOOK UP TO PHONE LINES APPLE AND OTHER NEWCOMERS COULD BENEFIT ANALYSTS SAID APPLE WILL BE INTRODUCING EWORLD FOR A SUBSCRIPTION FEE OF 895 A MONTH INCLUDING TWO FREE HOURS OF USE A MONTH COMPARED WITH PRODIGY'S 1495AMONTH BASIC FEE ANALYSTS SAID THAT APPLE WHICH LICENSED ITS ONLINE TECHNOLOGY FROM AMERICA ONLINE INC APPEARS TO HAVE AN EASIER SYSTEM TO USE WITH ITS HIGH BRANDNAME RECOGNITION AND LARGE POOL OF EXISTING MACINTOSH USERS APPLE EXPECTS TO SIGN BETWEEN 100000 AND 400000 SUBSCRIBERS IN THE FIRST YEAR OF OPERATION APPLE OFFICIALS WOULDN'T SAY HOW MUCH REVENUE THEY EXPECT FROM THE NEW SERVICE BUT AT 400000 SUBSCRIBERS THE COMPANY WOULD MAKE AS MUCH AS 100 MILLION IN ANNUAL REVENUE FROM MONTHLY FEES AND EXTRA HOURLY FEES THERE IS CERTAINLY AN ATTRACTIVENESS TO A RENEWABLE REVENUE STREAM BASED ON SERVICES SAID CHRIS BRYANT GROUP PRODUCT MANAGER FOR APPLE'S ONLINE SERVICES APPLE DESPERATELY NEEDS A NEW SOURCE OF REVENUE TO OFFSET SLIDING PROFIT IN ITS PERSONAL COMPUTER BUSINESS WHICH HAS BEEN UNDER ASSAULT FROM COMPETITORS THE CUPERTINO CALIF COMPANY STILL DERIVES MUCH OF ITS 8 BILLION IN ANNUAL REVENUE FROM SALES OF ITS FLAGSHIP LINE OF MACINTOSH COMPUTERS WITH MACINTOSH PROFIT MARGINS UNDER INTENSE PRESSURE APPLE IS TRYING TO BROADEN ITS PRESENCE IN SOFTWARE AND NEW TECHNOLOGY THOUGH ONLINE SERVICES CARRY GREAT PROFIT POTENTIAL SOME CARRIERS HAVE STRUGGLED AGAINST HIGH COSTS OF SETTING UP WAREHOUSES OF INFORMATION FOR USERS AND MARKETING FOR NEW CUSTOMERS PRODIGY SERVICES CO FOR EXAMPLE SAID IT JUST TURNED A PROFIT IN 1993 AFTER LOSING MONEY SINCE LAUNCHING ITS SERVICE IN 1989 THE LOSSES CAME DESPITE PRODIGY'S EXPLOSION IN SUBSCRIBERS TO SOME TWO MILLION TODAY FROM ABOUT 50000 IN 1989 THE PRIMARY REASON WE HAVE NOT BEEN PROFITABLE TO THIS POINT IS THAT WE INVESTED UP FRONT IN A COMPUTER NETWORK SAID A SPOKESMAN FOR WHITE PLAINS NYBASED PRODIGY A PARTNERSHIP OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO ALTHOUGH COMPUSERVE INC A UNIT OF H&R BLOCK INC HAS FARED BETTER WITH ITS COMPUSERVE ONLINE SERVICE THE SERVICE STARTED 15 YEARS AGO AND THUS HAS HAD MORE TIME TO WORK OUT ANY WRINKLES APPLE OFFICIALS SAID THEY BELIEVE THEIR STARTUP COSTS WILL BE LOWER BECAUSE THE COMPANY CAN DISTRIBUTE AND MARKET EWORLD TO CURRENT MACINTOSH USERS THROUGH EXISTING SALES CHANNELS WE CAN REACH AN INTERESTED AUDIENCE AND ROLL BEYOND THAT SAID MR BRYANT WHO ADDED THAT APPLE PLANS TO EXPAND EWORLD TO USERS OF RIVAL PCS OPERATED BY MICROSOFT CORP'S WINDOWS SYSTEM AT A LATER DATE IN OTHER DEVELOPMENTS YESTERDAY APPLE AND CITIBANK INTRODUCED THE APPLE CITIBANK MASTERCARD AND VISA THE FIRST CREDIT CARD TO OFFER CONSUMERS REBATES ON APPLE PRODUCTS CARD HOLDERS CAN EARN REBATES OF UP TO 5 ON PURCHASES OR AS MUCH AS 500 PER YEAR 9401050184 940105 AMBER'S SAMESTORE SALES FELL DALLAS AMBER'S STORES INC SAID ITS SALES AT STORES OPEN MORE THAN A YEAR FELL 47 LAST MONTH FROM A YEAR EARLIER THE ARTSANDCRAFTS RETAILER'S TOTAL DECEMBER SALES ROSE 38 TO 116 MILLION FROM 83 MILLION 9401050183 940105 ENERGY DEPARTMENT PAID OUT 47 MILLION FOR FIRMS' LEGAL FEES WASHINGTON THE ENERGY DEPARTMENT SPENT 47 MILLION IN LEGAL FEES DURING THE PAST THREE YEARS TO DEFEND NUCLEARWEAPONS PLANT CONTRACTORS AGAINST ENVIRONMENTAL CLASSACTION LAWSUITS THE TALLY WAS INCLUDED IN AN ENERGY DEPARTMENT MEMO OBTAINED BY THE MILITARY PRODUCTION NETWORK AN ENVIRONMENTAL GROUP FOCUSED ON ENVIRONMENTAL HAZARDS POSED BY NUCLEARWEAPONS PLANTS THE MEMO WAS REPORTED IN YESTERDAY'S EDITIONS OF THE NEW YORK TIMES NUCLEARWEAPONS PLANTS ARE RUN FOR THE ENERGY DEPARTMENT BY PRIVATE CONTRACTORS THE CONTRACTS TEND TO BE MORE GENEROUS TO PRIVATE INDUSTRY THAN AT OTHER FEDERAL AGENCIES MAINLY BECAUSE OF PATTERNS ESTABLISHED DURING THE EARLY DAYS OF THE COLD WAR WHEN A FEVERISH CONCERN ABOUT GETTING BOMB PLANTS UP AND RUNNING SUPERCEDED INTEREST IN COSTEFFECTIVENESS THE ENERGY DEPARTMENT'S PRACTICE OF PAYING LEGAL BILLS FOR CONTRACTORS BEING SUED BY WORKERS AND LOCAL RESIDENTS EXPOSED TO ENVIRONMENTAL HAZARDS AT OR NEAR THE PLANTS HAS LONG BEEN THE TARGET OF CRITICISM ENERGY DEPARTMENT COUNSEL ROBERT NORDHAUS WHOSE OFFICE PREPARED THE MEMO CONCEDED THAT THE PRACTICE IS MUCH LESS COMMON FOR OTHER AGENCIES THAN FOR THE DEPARTMENT OF ENERGY BUT HE SAID THE DEPARTMENT IS REQUIRED TO REIMBURSE CONTRACTORS' LEGAL BILLS UNDER THE 1957 PRICEANDERSON ACT THOUGH THAT REQUIREMENT IS SUBJECT TO THE ENERGY SECRETARY'S DISCRETION HE ADDED THAT BECAUSE THE DEPARTMENT IS ULTIMATELY LIABLE IN SUCH LAWSUITS IT'S IN THE DEPARTMENT'S INTEREST TO SUBSIDIZE SUCH LEGAL COSTS TO SOME EXTENT MR NORDHAUS SAID THE DEPARTMENT WILL RELEASE A PLAN IN THE COMING WEEKS ON HOW TO IMPOSE MUCH MORE STRINGENT PROCEDURES TO REDUCE THE DEPARTMENT'S LEGAL BILLS INCLUDING ELIMINATION OF DUPLICATION OF LEGAL WORK DONE FOR DIFFERENT CONTRACTORS AT THE SAME WEAPONS PLANT THE CONTRACTORS REIMBURSED FOR LEGAL FEES IN THE THREEYEAR PERIOD INCLUDE GENERAL ELECTRIC CO ROCKWELL INTERNATIONAL CORP AND WESTINGHOUSE ELECTRIC CORP THE LAW FIRMS INVOLVED INCLUDE GIBSON DUNN & CRUTCHER KIRKLAND & ELLIS AND SHEA & GARDNER 9401050182 940105 WHO'S NEWS SYMMETRICOM INC SYMMETRICOM INC SAN JOSE CALIF HOWARD ANDERSON MANAGING DIRECTOR OF YANKEE GROUP 49 YEARS OLD WAS NAMED TO THE BOARD OF THIS TELECOMMUNICATIONS OPERATING SYSTEMS CONCERN HE FILLS THE SEAT OF DANIEL MCMILLAN WHO DIED IN JUNE 1993 AT THE AGE OF 61 9401050180 940105 TEXAS JOURNAL AS FIRM FAILS DRIVERS LOSE INSURANCE BY MICHAEL TOTTY STAFF REPORTER OF THE WALL STREET JOURNAL IF SOMEONE HADN'T STOLEN HIS CAR DANNY GOODEN MIGHT HAVE TAKEN MUCH LONGER TO DISCOVER HE HAD BEEN ROBBED OF HIS AUTO INSURANCE AS WELL MR GOODEN A CHEMICALPLANT OPERATOR IN HUMBLE HAD FINANCED HIS INSURANCE PREMIUM BY BORROWING FROM WESTERN ACCEPTANCE CORP A LAS VEGAS PREMIUMFINANCE COMPANY THAT HAD ABOUT 3800 TEXAS CUSTOMERS HE MADE NEARLY 1600 IN PAYMENTS TO WESTERN FOR INSURANCE ON HIS USED FORD MUSTANG BUT HIS POLICY WAS CANCELED AFTER WESTERN'S CHECK TO THE INSURANCE COMPANY BOUNCED A MOVE MR GOODEN WASN'T AWARE OF UNTIL HIS CAR WAS TAKEN IN JUNE AND HE TRIED TO FILE A CLAIM THEY NEVER TOLD ME ANYTHING MR GOODEN SAYS THEY WERE STILL ACCEPTING MY PAYMENTS WESTERN CEASED OPERATING IN JUNE AFTER ITS LENDER BANK ONE TEXAS REVOKED A 75 MILLION LINE OF CREDIT LEAVING HUNDREDS OF TEXAS DRIVERS WITHOUT THE AUTO INSURANCE THEY THOUGHT THEY HAD PURCHASED WESTERN DID 70 OF ITS BUSINESS IN TEXAS AND STATE INSURANCE OFFICIALS ESTIMATE THAT AT LEAST 8 MILLION IN PAYMENTS BY POLICYHOLDERS IS UNACCOUNTED FOR MAKING WESTERN ONE OF THE MOST COSTLY FAILURES IN AUTOINSURANCEPREMIUM FINANCING AN INDUSTRY THAT GIVES REGULATORS LOTS OF HEADACHES REGULATORS SAY CASHFLOW PROBLEMS AT PREMIUMFINANCE COMPANIES OFTEN LEAD TO CONSUMER COMPLAINTS THAT THEIR INSURANCE POLICIES AREN'T BEING PAID FOR THE TEXAS DEPARTMENT OF INSURANCE WHICH REGULATES PREMIUMFINANCE COMPANIES IN THE STATE SAYS THAT SINCE WESTERN SHUT DOWN IT HAS RECEIVED MORE THAN 600 COMPLAINTS FROM TEXAS POLICYHOLDERS WHO BORROWED FROM WESTERN AND LATER DISCOVERED THEIR POLICIES WERE CANCELED FOR LACK OF PAYMENT THE DEPARTMENT HAS TURNED THE MATTER OVER TO THE FEDERAL BUREAU OF INVESTIGATION TEXAS LAW REQUIRES ONLY MINIMAL CAPITAL RESERVES FOR PREMIUMFINANCE COMPANIES 25000 IS ENOUGH TO QUALIFY FOR A LICENSE INSURANCE DEPARTMENT OFFICIALS SAY REPORTING REQUIREMENTS ARE INADEQUATE AND THE LAW GIVES REGULATORS LITTLE AUTHORITY TO TAKE CONTROL OF TROUBLED FINANCE COMPANIES ABOUT 300 COMPANIES IN TEXAS FINANCE PREMIUMS FOR WORKERS' COMPENSATION LIFE AND CONSUMER AUTO INSURANCE ABOUT TWOTHIRDS OF THEM SPECIALIZE IN FINANCING AUTO POLICIES MAINLY FOR HIGHRISK DRIVERS WHO CAN'T FIND LOWCOST INSURANCE IT IS IN THE AUTOINSURANCE SECTOR OF THE MARKET WHERE THE MOST PROBLEMS LIE SAY REGULATORS AND CONSUMER ADVOCATES MANY PREMIUMFINANCE COMPANIES INCLUDING 18 OF THE LARGEST ARE OWNED BY INSURANCE AGENTS OPENING THE POSSIBILITY OF CONFLICTS OF INTEREST AND INTEREST RATES CAN RUN AS HIGH AS 315 ON A 1000 PREMIUM AND AS HIGH AS 86 FOR A 300 PREMIUM AMY JOHNSON THE STATE'S PUBLIC INSURANCE COUNSEL WHO REPRESENTS CONSUMERS ON INSURANCE MATTERS HAS CALLED FOR RULES REQUIRING INSURANCE AGENTS TO OFFER LOWERCOST ALTERNATIVES TO PREMIUMFINANCE COMPANIES BUT INDUSTRY REPRESENTATIVES SAY NO ONE ELSE WANTS THE HASSLES OF DEALING WITH HIGHRISK LOANS BESIDES SAYS ROBERT DUKE GENERAL COUNSEL OF THE INSURANCE PREMIUM FINANCE ASSOCIATION OF TEXAS FEW POLICYHOLDERS HAVE TO PAY THE MAXIMUM RATES MARKET RATES HE SAYS ARE CLOSER TO THOSE CHARGED BY CREDITCARD AND OTHER CONSUMERFINANCE COMPANIES WESTERN ACCEPTANCE ILLUSTRATES THE PITFALLS OF THE INDUSTRY THE COMPANY WAS FORMED IN 1985 AND RECEIVED THE FIRST PREMIUMFINANCING LICENSE ISSUED BY NEVADA IN 1990 IT ACQUIRED AUTO PREM PLAN OF HOUSTON WESTERN OPERATED IN PENNSYLVANIA NEW JERSEY ILLINOIS AND TEXAS ALTHOUGH ITS REVENUE SOARED WESTERN SHOWED OPERATING AND NET LOSSES EVERY YEAR IT WAS IN BUSINESS IN 1992 THE COMPANY REPORTED A NET LOSS OF 15 MILLION ON REVENUE OF 5 MILLION PREMIUMFINANCE COMPANIES ARE TYPICALLY CONSTRAINED IN THE AMOUNT OF LOANS THEY CAN FINANCE BY THEIR WORKING CAPITAL WESTERN WAS ABLE TO GET AROUND THESE CONSTRAINTS BY ADOPTING A TECHNIQUE COMMON AMONG PERSONALFINANCE COMPANIES IT SOLD ASSETBACKED SECURITIES THAT USED ITS PREMIUMFINANCE NOTES AS COLLATERAL IN 1991 AND 1992 IT SOLD NEARLY 15 MILLION OF THE SECURITIES TO LARGE INSTITUTIONAL INVESTORS INCLUDING COMERICA INC AND TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA A LARGE PENSION FUND YET THE INFUSION WASN'T ENOUGH TO SOLVE THE CASHFLOW TROUBLES BANK ONE TEXAS REFUSED TO RENEW THE CREDIT LINE WHEN IT EXPIRED AND WESTERN SHUT ITS DOORS BOB MORGAN A WESTERN ACCEPTANCE OUTSIDE DIRECTOR AND FORMER PARTNER OF AUTO PREM PLAN BLAMED THE COMPANY'S TROUBLES ON A FASTGROWTH STRATEGY THAT FELL APART WHEN SALES PROJECTIONS DIDN'T MATERIALIZE THE COST OF MOVING ITS HOUSTON LOANPROCESSING OFFICE TO LAS VEGAS AND TROUBLES WITH A NEW AUTOMATED TELEPHONE SYSTEM CONTRIBUTED TO ITS WOES AND WITH ITS CREDIT GONE THE COMPANY COLLAPSED TEXAS REGULATORS ARE SIFTING THROUGH THE WRECKAGE TRYING TO DISCOVER HOW MUCH WESTERN COLLECTED IN PREMIUMS THAT WERE NEVER USED TO FUND INSURANCE POLICIES MEANWHILE THEY ARE WRANGLING OVER WESTERN'S REMAINING CASH WITH TEXAS COMMERCE BANK WHICH HAS TAKEN OVER SERVICING THE BANK ONE CREDIT LINE AND WITH TRUSTEES FOR THE INVESTMENT TRUSTS THAT OWN THE ASSETBACKED SECURITIES BUT REGULATORS ARE HINDERED BY WESTERN'S RECORDKEEPING WHICH THEY SAY IS IN SHAMBLES AND BY A LACK OF CLEAR AUTHORITY TO CLAIM WESTERN'S ASSETS ON BEHALF OF POLICYHOLDERS NOTES FIGURES ARE FOR 1992 DOLLAR FIGURES ARE ESTIMATES 9401050179 940105 TEXAS JOURNAL WHY DO SO FEW TEXANS OWN HOMES AMONG THE ANSWERS LOW INCOMES AGE AND FEARS OF A BUST BY TARA PARKERPOPE STAFF REPORTER OF THE WALL STREET JOURNAL IN TEXAS HOME SWEET HOME IS PROBABLY A RENTAL ALTHOUGH THE STATE BOASTS SOME OF THE NATION'S CHEAPEST HOUSES JUST 61 OUT OF 10 TEXANS OWN THEIR HOMES RANKING TEXAS 43RD IN THE COUNTRY AND IN SOME PARTS OF THE STATE SUCH AS AUSTIN AND HOUSTON THE RATIO IS CLOSER TO FIVE OUT OF 10 PUT PART OF THE BLAME ON MONEY OR RATHER A LACK OF IT WHILE TEXAS HOUSING PRICES MAY BE LOW BY NATIONAL STANDARDS TEXAS INCOMES ARE EVEN LOWER PUTTING HOMES OUT OF FINANCIAL REACH FOR MANY BUT THAT'S NOT THE ONLY REASON HOUSING EXPERTS ALSO SAY THAT TEXANS' ETHNIC MIX LINGERING MEMORIES ABOUT PAST HOUSING BUSTS AND THE RELATIVE YOUTH AND MOBILITY OF THE STATE ALL CONTRIBUTE TO THE LOW HOMEOWNERSHIP RATE WHATEVER THE REASON THOUGH NEARLY EVERYONE AGREES ON THE RESULT IT HURTS TEXAS ON A SOCIOLOGICAL LEVEL HOME OWNERSHIP BUILDS A SENSE OF COMMUNITY AND CONTRIBUTES TO STABILITY AND IT'S EQUALLY IMPORTANT TO THE ECONOMY ALTHOUGH NEW HOME CONSTRUCTION A MAJOR ENGINE OF ECONOMIC GROWTH WAS UP SHARPLY LAST YEAR IN TEXAS HOUSING STARTS AS WELL AS EXISTING HOME SALES WOULD HAVE BEEN EVEN HIGHER IF A GREATER PERCENTAGE OF TEXANS OWNED HOMES INDEED IF THE TEXAS OWNERSHIP LEVEL WERE TO SUDDENLY JUMP TO THE NATIONAL MEDIAN OF 674 AN ADDITIONAL 400000 BUYERS WOULD FLOOD THE MARKET THAT'S SEVEN TIMES MORE THAN THE 56500 HOMEBUILDING PERMITS ISSUED IN TEXAS IN THE 12 MONTHS ENDED IN OCTOBER ON THE ECONOMIC SIDE HOME OWNERSHIP MORE SO THAN RENTING HAS ENORMOUS SPREAD EFFECTS SAYS JAMES W CHRISTIAN DIRECTOR OF TEXAS A&M UNIVERSITY'S REAL ESTATE CENTER WHICH HAS BEGUN A STUDY TO FIGURE OUT WHAT CAN BE DONE TO INCREASE THE TEXAS OWNERSHIP RATE EVERY TIME YOU HAVE A HOME PURCHASE YOU PURCHASE CARPETING AND DRAPERIES AND FURNITURE AND ALL THOSE THINGS THAT GO WITH IT ONE OBVIOUS PROBLEM AND ONE THAT DEFIES EASY SOLUTIONS IS THE FACT THAT TEXAS INCOMES ARE RELATIVELY LOW HOME PRICES IN TEXAS MAY LOOK LOW TO OUTSIDERS COMING FROM CALIFORNIA OR THE EAST COAST BUT NOT SO FOR PEOPLE WHO LIVE HERE ACCORDING TO A STUDY BY THE NATIONAL ASSOCIATION OF HOMEBUILDERS EL PASO IS ONE OF THE LEAST AFFORDABLE CITIES IN THE NATION WHEN COMPARING HOME PRICES TO THE AREA'S MEDIAN INCOME OF 27700 THE STUDY ASSUMES THAT A FAMILY CAN AFFORD TO PURCHASE A HOME COSTING 34 TIMES ITS ANNUAL INCOME OR IN EL PASO'S CASE 94180 THE STUDY THEN LOOKS AT THE PERCENTAGE OF HOMES THAT ARE PRICED AT OR BELOW THAT FIGURE THE RESULT MORE THAN 40 OF THE HOUSING IN EL PASO IS PRICED HIGHER THAN ITS RESIDENTS CAN AFFORD THAT COMPARES WITH 349 NATIONALLY BASED ON A NATIONAL MEDIAN INCOME OF 39700 SAN ANTONIO AND AUSTIN ALSO WERE IN THE BOTTOM 25 OF THE NATION IN TERMS OF AFFORDABILITY AND HOUSTON AND DALLAS DIDN'T FARE MUCH BETTER RANKING 124 AND 129 RESPECTIVELY OUT OF 186 CITIES THE MOST AFFORDABLE CITY IN TEXAS BRAZORIA NEAR HOUSTON WHERE ONLY ABOUT 7 OF THE HOMES ARE PRICED OUT OF REACH THE FIGURES DON'T SURPRISE EL PASO REALESTATE BROKER CHARLIE CLARK WHEN YOU HAVE A LARGE PERCENTAGE OF YOUR POPULATION JUST BARELY MAKING 10000 TO 12000 A YEAR HE SAYS IT'S VERY DIFFICULT TO QUALIFY FOR A HOME ANOTHER BIG AND LITTLE UNDERSTOOD FACTOR IS ETHNICITY BOTH THE TEXAS A&M REAL ESTATE CENTER'S STUDY AND RELATED INQUIRY BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE ARE FOCUSING ON MINORITY GROUPS TO LEARN MORE ABOUT THEIR HOMEBUYING HABITS IT'S A CRUCIAL ISSUE IN TEXAS WHERE MINORITIES MAKE UP 40 OF THE POPULATION ALTHOUGH 65 OF ANGLO HOUSEHOLDS IN TEXAS ARE OWNEROCCUPIED THAT NUMBER DROPS TO 53 FOR HISPANIC HOUSEHOLDS BLACKS FARE EVEN WORSE ONLY 454 OF BLACK HOUSEHOLDS IN TEXAS ARE OWNEROCCUPIED ACCORDING TO 1990 CENSUS DATA AND IN SOME PARTS OF THE STATE THE NUMBERS DROP EVEN LOWER IN THE DALLAS/FORT WORTH AREA FOR INSTANCE BARELY 40 OF BLACK AND HISPANIC HOUSEHOLDS ARE OWNEROCCUPIED ALTHOUGH PART OF THE TREND CAN BE EXPLAINED BY THE FACT THAT MINORITIES TEND TO HAVE LOWER INCOMES THAN WHITES NOT ALL OF IT CAN MR CHRISTIAN SAYS HISPANICS FOR INSTANCE ARE POWERFULLY FAMILYORIENTED AND THAT JUST GOES ALONG WITH HOME OWNERSHIP SAYS MR CHRISTIAN EDUCATION INCOME THOSE OTHER THINGS MAY GET IN THE WAY BUT WE THINK IF YOU UNDERSTAND HOW TO BUILD AND SERVE THE HISPANIC MARKET WE CAN OVERCOME THOSE OBSTACLES FANNIE MAE HAS BEGUN A NATIONWIDE ADVERTISING AND INFORMATION CAMPAIGN TO APPEAL TO PROSPECTIVE BLACK AND HISPANIC HOME BUYERS WITH COMMERICALS FEATURING MINORITY ACTORS IN BOTH ENGLISH AND SPANISH THE PROGRAM BEGAN IN DALLAS IN 1992 AND LAST FALL HIT SAN ANTONIO WHERE FANNIE MAE HOSTED A HOUSING FAIR STILL FOR SOME REASON MANY PEOPLE SIMPLY AREN'T GETTING THE MESSAGE OR ARE CONFUSED BY THE LINGO DURING THE SAN ANTONIO HOUSING FAIR ONE WOMAN WAS CONCERNED BECAUSE ALTHOUGH SHE IS SINGLE SHE HAS TWO CHILDREN COULD SHE STILL BUY A SINGLEFAMILY HOME SOME FOLKS WHO HAVE NEVER OWNED A HOME BUT HAVE EXPERIENCE WITH CREDIT CARDS THINK THEY HAVE TO PAY 7000 TO 8000 A MONTH TO AFFORD A 70000 HOUSE SAYS SUZANNE PARKER DIRECTOR OF FANNIE MAE'S COMMUNITYHOUSING PROGRAM EMELDA MENENDEZ A SAN ANTONIO SCHOOL TEACHER IS IN THE PROCESS OF BUYING HER FIRST HOME WITH HER HUSBAND ADOLFO FOR THE PAST 12 YEARS THE FAMILY FACED UNEMPLOYMENT AND CREDIT PROBLEMS AND NEVER THOUGHT THEY COULD AFFORD A HOME ONLY WHEN MR MENENDEZ TOOK A JOB WITH A LENDING ORGANIZATION DID THE FAMILY BECOME AWARE OF ALL THE PROGRAMS AVAILABLE FOR LOWINCOME FAMILIES IF WE WOULD HAVE KNOWN A LOT OF THE THINGS THAT WERE AVAILABLE FOR LOWINCOME FAMILIES WE WOULD HAVE GOTTEN A HOME A LONG TIME AGO MRS MENENDEZ SAYS MONEY AND CULTURAL BACKGROUND AREN'T THE ONLY IMPEDIMENTS TO OWNING A PIECE OF TEXAS EVEN MANY SEEMINGLY AFFLUENT WHITE TEXANS ARE RELUCTANT TO BUY HOMES THESE DAYS INDEED HOUSTON MAYOR BOB LANIER RECENTLY SOLD HIS RIVER OAKS MANSION AND MOVED INTO A HIGHRISE APARTMENT SIMPLY FOR THE CONVENIENCE MOREOVER MANY TEXANS CHOOSE TO RENT BECAUSE THEY FEAR THE COMMITMENT AND FINANCIAL RESPONSIBILITY OF OWNING A HOUSE JUST FIVE YEARS AGO AN ESTIMATED 43000 TEXANS LOST THEIR HOMES IN FORECLOSURES WHILE COUNTLESS OTHERS LOST MONEY OR ARE STILL STUCK WITH A HOUSE THEY CAN'T SELL JEANETTE RICE IS A PRIME EXAMPLE A REALESTATE ANALYST FROM HOUSTON MS RICE 39 USED TO BE A HOMEOWNER BUT NOW PROUDLY DECLARES HERSELF IN THE RANKS OF RENTERS MANY OF US GOT BURNED SHE SAYS LOTS OF PEOPLE GAVE THEIR HOMES BACK TO BANKS PEOPLE LOST A LOT OF MONEY I'M RELUCTANT TO BUY BECAUSE MY LAST PURCHASE I LOST MONEY ON TEXANS ARE ALSO BELIEVED TO MOVE MORE THAN OTHER PEOPLE AND THAT TOO MAY BE A FACTOR IN THE LOW HOMEOWNERSHIP RATE WHEN 34YEAROLD EXECUTIVE DAVID BECK MOVED HIS FAMILY TO EL PASO LAST YEAR HE STILL OWNED A HOME IN ALLEN NEAR DALLAS THE HOUSE EVENTUALLY SOLD BUT MR BECK DECIDED HE PREFERRED LIFE AS A RENTER WE'VE MOVED EIGHT TIMES IN 10 YEARS SO WE'RE A LITTLE LEERY SAYS MR BECK WHO STILL WINCES WHEN HE TELLS OF BUYING A HOME IN FLORIDA IN 1992 ONLY TO BE TRANSFERRED SIX MONTHS LATER IT'S HOW WE'VE CHOSEN TO LIVE FOR NOW TEXAS ALSO IS UNIQUE IN THAT IT'S THE ONLY STATE THAT PROHIBITS HOMEEQUITY LOANS THAT MAY DISCOURAGE TEXANS FROM INVESTING THEIR SAVINGS IN A HOME SINCE THEY CAN'T BORROW AGAINST IT IT ALSO MAY EXPLAIN WHY FANNIE MAEBACKED LOANS BASED ON JUST A 5 DOWN PAYMENT ARE MORE COMMON IN TEXAS THAN ANY OTHER STATE SOME RESEARCHERS SAY THERE ARE SIGNS THAT THE STATE'S ABYSMAL HOMEOWNERSHIP STANDING MAY BEGIN TO IMPROVE THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS IS PLANNING AN 83 MILLION TAXEXEMPT BOND PROGRAM BEGINNING NEXT MONTH TO PROVIDE MORTGAGE LOANS TO LOWINCOME AND FIRSTTIME HOME BUYERS HOME PRICES WHICH HAVE BEEN RELATIVELY FLAT ARE BEGINNING TO RISE A TREND RESEARCHERS SAY WILL ENCOURAGE MORE HOME BUYERS WHO HAVE BEEN WAITING FOR THE MARKET TO BOTTOM OUT TO JUMP IN AND LOW INTEREST RATES PROMPTED AN 84 INCREASE IN EXISTING HOME SALES LAST YEAR AND PERSUADED EVEN THE MOST RELUCTANT HOME BUYERS TO RECONSIDER THAT'S WHAT HAPPENED TO SCOTT DURFEE 29 A HARRIS COUNTY ASSISTANT DISTRICT ATTORNEY WHO PREFERRED THE IDEA OF A LONG VACATION TO BUYING A HOME IN THE SPRING WE HAD ALL THIS MONEY IN THE BANK ACCOUNT AND NO INCLINATION TOWARD BUYING A HOUSE SAYS MR DURFEE WHOSE WIFE IS ALSO A LAWYER WE WERE VERY CLOSE TO GOING TO FRANCE ON IT AND SAYING THE HECK WITH IT BUT MR DURFEE AND HIS WIFE DIDN'T GO TO FRANCE INSTEAD THEY DECIDED TO TAKE THE PLUNGE THE RIGHT OPPORTUNITY CAME UP AND WE DECIDED TO MAKE THE COMMITMENT MR DURFEE SAYS AFTER WE GOT INTO THE PROCESS I WAS SURPRISED HOW EASY IT IS 9401050178 940105 QUAKER STATE UNIT TO PAY 995 MILLION IN WESCAL SETTLEMENT OIL CITY PA HERITAGE LIFE INSURANCE CO A SUBSIDIARY OF QUAKER STATE CORP SAID IT REACHED AN OUTOFCOURT SETTLEMENT WITH OWNERS OF WESCAL CREDIT INSURANCE AGENCY THAT SETS ASIDE A 217 MILLION CALIFORNIA COURT VERDICT HERITAGE BASED IN AGOURA HILLS CALIF HAD APPEALED THE VERDICT UNDER THE SETTLEMENT HERITAGE WILL PAY WESCAL 995 MILLION QUAKER STATE SAID THE SETTLEMENT WOULD HAVE NO NET IMPACT ON ITS SUBSIDIARY'S EARNINGS A RESERVE OF 5 MILLION WAS RECORDED IN THE THIRD QUARTER OF 1993 IN ANTICIPATION OF LIABILITY ARISING FROM THE CASE THE REMAINING 495 MILLION WILL BE CHARGED TO EARNINGS IN THE FOURTH QUARTER BUT THIS WILL BE FULLY OFFSET BY THE SALE OF SECURITIES BY HERITAGE SAID R SCOTT KEEFER VICE PRESIDENT/FINANCE AND CHIEF FINANCIAL OFFICER OF QUAKER STATE WESCAL BASED IN ORANGE COUNTY CALIF HAD ACCUSED HERITAGE OF BREACH OF CONTRACT DURING THE TIME WESCAL WAS GENERAL AGENT OF HERITAGE FROM 1984 TO 1990 QUAKER STATE INSISTED THE SETTLEMENT DOES NOT IMPLY HERITAGE'S GUILT BUT RATHER A DECISION BY THE COMPANY TO CURTAIL COSTS ASSOCIATED WITH A PROTRACTED LEGAL BATTLE 9401050177 940105 POLITICS & POLICY FED'S BANK PLAN MEETS CRITICISM FROM TREASURY BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY DEPARTMENT OFFICIALS SHARPLY CRITICIZED A FEDERAL RESERVE BOARD PROPOSAL TO TAKE OVER REGULATION OF ALL STATECHARTERED BANKS SAYING SUCH A MOVE WOULD BE COUNTERPRODUCTIVE AND WOULD BREED CONFUSION THE FED PROPOSAL WAS ADVANCED AS AN ATTEMPT TO BLUNT THE CLINTON ADMINISTRATION'S OWN PLAN WHICH WOULD CONSOLIDATE THE FOUR FEDERAL FINANCIAL REGULATORS INTO A SINGLE FEDERAL BANKING COMMISSION THAT PLAN PART OF THE CLINTON REINVENTING GOVERNMENT INITIATIVE WAS PROPOSED AS A WAY TO PROMOTE EFFICIENCY AND REDUCE THE REGULATORY BURDEN ON BANKS AND THRIFTS BUT THE FED HAS OPPOSED THE ADMINISTRATION'S PLAN FED OFFICIALS HAVE ARGUED THAT THE PROPOSAL THREATENS TO UNDERMINE THE FED'S HANDSON ROLE IN BANKING SUPERVISION AND THEREFORE ITS TASK OF MAINTAINING THE STABILITY OF THE NATION'S FINANCIAL SYSTEM THE FED'S PROPOSAL WOULD PLACE 8500 STATECHARTERED BANKS UNDER ITS REGULATORY UMBRELLA COMBINING THE 1000 ALREADY SUPERVISED BY THE FED WITH THE 7500 CURRENTLY REGULATED BY THE FEDERAL DEPOSIT INSURANCE CORP THE PROPOSAL ALSO CALLS FOR THE OFFICE OF THE COMPTROLLER OF THE CURRENCY WHICH REGULATES 3600 NATIONALLY CHARTERED BANKS TO BE COMBINED WITH THE OFFICE OF THRIFT SUPERVISION WHICH REGULATES 1800 SAVINGSANDLOAN INSTITUTIONS THE PROPOSAL HAS THE INFORMAL SUPPORT OF THE FED'S SEVENMEMBER BOARD OF GOVERNORS A SPOKESWOMAN SAID IT WAS ADVANCED IN AN ARTICLE BY JOHN LAWARE A FED GOVERNOR IN YESTERDAY'S ISSUE OF THE AMERICAN BANKER A BANKINGINDUSTRY NEWSPAPER UNDER THE PROPOSAL THE FED WOULD CONTINUE TO SUPERVISE 6300 BANKHOLDING COMPANIES WHILE THE FDIC WOULD CONTINUE TO INSURE DEPOSITS AND DEAL WITH FAILED BANKS AND S&LS BUT AT A NEWS CONFERENCE YESTERDAY TREASURY OFFICIALS SAID THAT UNDER THE FED PROPOSAL THE FED WOULD HAVE TO REPLICATE THE EXPERTISE OF OTHER REGULATORS IN CASES WHERE A BANKHOLDING COMPANY OWNS DIFFERENT TYPES OF INSTITUTIONS IF THE LEAD BANK IN THE COMPANY IS A STATE BANK THE FED WOULD REGULATE THE LEAD BANK AS WELL AS AFFILIATED NATIONALLY CHARTERED BANKS OR THRIFTS THUS THE FED WOULD HAVE TO ENFORCE RULES OF THE COMBINED COMPTROLLEROTS AGENCY THEY WOULD BE CONSTANTLY IN EACH OTHER'S HAIR SAID RICHARD CARNELL AN ASSISTANT SECRETARY FOR DOMESTIC FINANCE SIMILARLY IF THE LEAD BANK IS NATIONALLY CHARTERED THE COMPTROLLEROTS WOULD HAVE TO REGULATE ALL THE AFFILIATES UNDER THE CLINTON PLAN ALL FINANCIALREGULATORY KNOWHOW WOULD BE COMBINED UNDER A FIVEMEMBER BOARD THE TREASURY OFFICIALS ALSO SAID THE FED PROPOSAL WOULD BOOST FED SUPERVISION FROM 18 OF COMMERCIALBANK ASSETS TO MORE THAN 40 OF THOSE ASSETS THE POLITICAL FEASIBILITY OF THAT APPROACH IN CONGRESS IS DOUBTFUL MR CARNELL SAID FRANK NEWMAN TREASURY UNDERSECRETARY FOR DOMESTIC FINANCE NOTED THAT HOUSE AND SENATE BANKING COMMITTEE LEADERS HAVE ENDORSED CONSOLIDATION OF THE FOUR REGULATORY AGENCIES AND EVEN ASKED FOR THE CLINTON PLAN THOSE LEADERS PROBABLY ARE HEADED IN OUR DIRECTION HE SAID YESTERDAY REP HENRY GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING COMMITTEE REITERATED HIS SUPPORT FOR A SINGLE REGULATOR HE TERMED THE FED PROPOSAL CLEARLY UNACCEPTABLE CALLING IT SIMPLY A POWER PLAY MR LAWARE SAID IN HIS ARTICLE THAT THE FED PROPOSAL MEETS THE ADMINISTRATION'S GOALS WITH LESSCOSTLY MOREMODEST CHANGES THAT POSE FAR LESS RISK TO THE BANKING SYSTEM HE SAID IT WOULD ALSO CONTINUE TO ALLOW AN INSTITUTION THAT FEELS IT IS TOO RIGIDLY REGULATED TO FIND A NEW FEDERAL EXAMINER BY CHANGING THE CHARTER OF ITS LEAD BANK FROM NATIONAL TO STATE FOR EXAMPLE FURTHER THE PROPOSAL WOULD MAINTAIN REGULATORY FLEXIBILITY AND DYNAMIC TENSION BETWEEN REGULATORS HE SAID MR NEWMAN SAID THAT WHILE THE CLINTON ADMINISTRATION WILL CONSIDER THE BANKING INDUSTRY'S VIEWS ON THE VARIOUS PROPOSED CHANGES OUTRIGHT NEGOTIATION WITH A REGULATED INDUSTRY TO WIN ITS SUPPORT WOULDN'T BE SEEMLY 9401050176 940105 SOME MAY WONDER WHETHER THIS WAS IN USE BEFORE THE RECESSION BY ALAN YONAN JR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHY BE KING FOR A DAY WHEN YOU CAN BE CHAIRMAN OF THE FEDERAL RESERVE BOARD ALL YOU HAVE TO DO IS SUCCESSFULLY GUIDE THE COURSE OF MONETARY POLICY THROUGH A SERIES OF VIDEOGAME CRISES AND HONORARY CHAIRMAN STATUS IS YOURS THE VIDEO MACHINE IS IN THE LOBBY OF THE FED'S HEADQUARTERS HERE DOWNSTAIRS FROM WHERE OFFICIALS OF THE NATION'S CENTRAL BANK PULL THE REAL LEVERS THAT DETERMINE THE VALUE OF YOUR MONEY YOU START WITH A SIMPLE TEXTBOOK CASE AFTER A PERIOD OF STRONG ECONOMIC GROWTH THE ECONOMY BEGINS TO OVERHEAT INFLATIONARY PRESSURES ARE BUILDING AND THE CONSUMERPRICE INDEX IS POISED TO TAKE A SHARP UPTURN DO YOU A BUY GOVERNMENT SECURITIES AND INCREASE THE MONEY SUPPLY B SELL GOVERNMENT SECURITIES AND DECREASE THE MONEY SUPPLY OR C HOLD THE PRESENT COURSE OF MONETARY POLICY DID YOU CHOOSE B GOOD ANSWER YOU WANT TO REIN IN GROWTH BY TIGHTENING THE MONEY SUPPLY BUT DON'T START MEASURING FOR DRAPES IN CHAIRMAN ALAN GREENSPAN'S OFFICE YET AFTER A MONTH OF UNCERTAINTY IT IS CLEAR THAT THE ECONOMY HAS ENTERED RECESSION WORKERS ARE LAID OFF THE VIDEO SCREEN SHOWS A FACTORY WITH ITS GATE SWINGING SHUT A SMART CENTRAL BANKER WOULD BUY GOVERNMENT SECURITIES THEREBY INCREASING THE MONEY SUPPLY AND ENCOURAGING ECONOMIC GROWTH THE THIRD SCENARIO THE BLACK MONDAY STOCKMARKET CRASH OF 1987 ON THE SCREEN A GRAPH OF THE DOW JONES INDUSTRIAL AVERAGE PLUMMETS FASTER THAN AN ANVILDROPPED FROM THE TOP OF THE EMPIRE STATE BUILDING IN THIS CASE YOU WOULD AGAIN BUY SECURITIES AS THE FED DID IN 1987 INCREASING THE MONEY SUPPLY AND ENSURING ENOUGH LIQUIDITY IN THE ECONOMY TO CALM THE MARKETS FINALLY THE UNEMPLOYMENT RATE TAKES AN UNEXPECTED TURN UPWARD TO 59 FROM 55 IN ONE MONTH THIS IS CLEARLY AN OLD VIDEO GAME THE WISE MOVE WOULD BE TO HOLD POLICY STEADY BUT WITH A CLOSE EYE ON THE UNEMPLOYMENT RATE TO SEE WHETHER THE MOVEMENT IS THE START OF A TREND IF YOU HANDLED ALL FOUR SITUATIONS CORRECTLY CONGRATULATIONS BECAUSE OF YOUR MONETARYPOLICY DECISIONS THE PRESIDENT HAS DECIDED TO REAPPOINT YOU AS CHAIRMAN FOR THE REST OF YOU IT'S BACK TO THE DAY JOB 9401050175 940105 BUSINESS BRIEF FORD RECALLS 11 MILLION MORE SEDANS DUE TO SUBFRAME CORROSION PROBLEMS DETROIT FORD MOTOR CO IS EXPANDING AN EARLIER RECALL TO INCLUDE AN ADDITIONAL 11 MILLION FORD TAURUS MERCURY SABLE AND LINCOLN CONTINENTAL SEDANS BECAUSE SALT AND MOISTURE MAY EAT THROUGH THE VEHICLES' SUBFRAMES WHICH HOLD THE CARS' ENGINES AND TRANSMISSIONS IN PLACE THE LATEST ACTION BRINGS THE RECALL TOTAL TO 16 MILLION OR 45 OF THE TAURUS SABLE AND CONTINENTAL SEDANS SOLD IN 1986 THROUGH 1993 A FORD SPOKESWOMAN SAID FORD RECALLED 500000 OF THE SEDANS IN JULY THE RECALLS AFFECT VEHICLES IN 14 MIDWESTERN AND NORTHEASTERN STATES WHERE ROAD SALT WHICH CONTRIBUTES TO SUBFRAME CORROSION IS REGULARLY USED FORD HAS RECEIVED AT LEAST 20 REPORTS OF SUBFRAMES COMING LOOSE AND DROPPING ONTO THE MAIN VEHICLE FRAME WHEN THIS HAPPENS THE VEHICLES BECOME DIFFICULT TO STEER FORD SAID THE LATEST RECALL INVOLVES 198993 FORD TAURUSES AND MERCURY SABLES AND 198893 LINCOLN CONTINENTALS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAID FORD SAID IT WILL NOTIFY DEALERS SHORTLY AND THEN ADVISE THE 11 MILLION SEDAN OWNERS OF THE RECALL THE RECALL LAST SUMMER INVOLVED 500000 198688 TAURUSES AND SABLES AND 1988 CONTINENTALS AS PREVIOUSLY REPORTED THOSE VEHICLES ACCOUNTED FOR 19 OF THE 20 REPORTED CORROSION INCIDENTS RESULTING IN TWO ACCIDENTS BUT NO INJURIES SEPARATELY FEDERAL SAFETY REGULATORS REPORTED THAT HYUNDAI MOTOR CORP IS RECALLING 100000 198994 HYUNDAI SONATAS TO FIX FAULTY MOTORIZED SHOULDER BELTS AND 257000 199094 HYUNDAI EXCELS THAT MAY LEAK TOO MUCH FUEL IN SIDE IMPACTS CREATING A FIRE HAZARD THERE HAVE BEEN NO REPORTS OF ACCIDENTS OR INJURIES RESULTING FROM EITHER PROBLEM HYUNDAI SAID GENERAL MOTORS CORP IS RECALLING 108898 199293 PONTIAC SUNBIRDS BECAUSE OF DEFECTIVE ACCELERATOR CABLES IN COLD WEATHER ICE CAN CAUSE THE THROTTLE TO STICK AND THE VEHICLE MIGHT NOT SLOW DOWN WHEN THE DRIVER'S FOOT COMES OFF THE GAS PEDAL GM WAS UNAVAILABLE FOR COMMENT JAGUAR MOTORS INC FORD'S BRITISH LUXURYCAR UNIT IS RECALLING 52102 19871992 JAGUAR SEDANS AND COUPES BECAUSE OF PROBLEMS WITH AUTOMATIC SEAT BELTS THAT MAY PREVENT THEIR USE NO ACCIDENTS OR INJURIES HAVE BEEN REPORTED FEDERAL REGULATORS SAID 9401050174 940105 WHO'S NEWS SANDOZ LTD SANDOZ LTD BASEL SWITZERLAND LAWRENCE S OLANOFF 41 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT WORLDWIDE CLINICAL RESEARCH AT THIS DRUG MAKER'S SANDOZ PHARMACEUTICALS CORP UNIT DR OLANOFF WAS MOST RECENTLY CORPORATE VICE PRESIDENT CLINICAL DEVELOPMENT AND MEDICAL AFFAIRS AT UPJOHN CO 9401050173 940105 TECHNOLOGY & HEALTH QUALMED DELAYS SHAREHOLDER VOTE ON HMO MERGER BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL PUEBLO COLO QUALMED INC POSTPONED A SHAREHOLDER VOTE ON ITS PROPOSED 775 MILLION MERGER WITH THE OPERATOR OF A CALIFORNIA HEALTH MAINTENANCE ORGANIZATION IN THE WAKE OF AN 89 MILLION COURT AWARD AGAINST THE CALIFORNIA COMPANY QUALMED AN HMO OPERATOR DELAYED A SPECIAL SHAREHOLDERS MEETING PLANNED FOR FRIDAY TO VOTE ON THE MERGER WITH CLOSELY HELD HN MANAGEMENT HOLDING INC QUALMED SAID IT WANTED TO ASSESS THE IMPACT OF THE AWARD BY A CALIFORNIA STATE COURT JURY TO THE FAMILY OF A BREASTCANCER PATIENT WHO DIED AFTER HN MANAGEMENT'S HMO UNIT HEALTH NET REFUSED TO PAY FOR AN EXPERIMENTAL BONEMARROW TRANSPLANT HEALTH NET CALIFORNIA'S SECONDLARGEST HMO IS SELFINSURED AND WOULD HAVE TO PAY ANY DAMAGE AWARD FROM OPERATING REVENUE A HEALTH NET SPOKESMAN SAID IN AN INTERVIEW A QUALMED EXECUTIVE SAID THE MOVE WAS NOT A SIGN THAT THE COMPANY INTENDED TO WITHDRAW FROM THE ACQUISITION AGREEMENT OR HAD BROADER CONCERNS ABOUT HEALTH NET'S OPERATIONS AT THIS POINT WE ARE NOT PULLING OUT SAID E KEITH HOVLAND QUALMED EXECUTIVE VICE PRESIDENT WHAT WE ARE DOING IS BASICALLY TAKING SOME ADDITIONAL TIME TO REVIEW THIS CASE AND ASSESS THE ALTERNATIVES AND THE IMPACT GOING FORWARD QUALMED SAID THAT A SPECIAL COMMITTEE OF ITS OUTSIDE DIRECTORS WOULD REVIEW THE SITUATION AND THAT IT WOULD RESCHEDULE THE SPECIAL SHAREHOLDER MEETING FOR NO LATER THAN MARCH 31 QUALMED ANNOUNCED AUG 30 THAT IT WOULD COMBINE WITH HN MANAGEMENT IN A STOCK TRANSACTION VALUED AT 775 MILLION HEALTH NET HAD 1992 NET INCOME OF ABOUT 275 MILLION ON REVENUE OF ABOUT 12 BILLION A SPOKESMAN FOR HEALTH NET BASED IN WOODLAND HILLS CALIF SAID HIS COMPANY HAD EXPECTED THE DELAY IT'S A PRUDENT MOVE HE SAID ADDING THAT HEALTH NET PLANNED TO ASK THE STATE JUDGE WHO HEARD THE CASE IN RIVERSIDE CALIF FOR A NEW TRIAL AND EXPECTED A RULING ON THE REQUEST NEXT MONTH IF THE REQUEST IS DENIED WE WILL APPEAL TO THE FULLEST EXTENT POSSIBLE HE SAID INDUSTRY ANALYSTS SAID THEY EXPECTED THE DEAL TO PROCEED EVENTUALLY ALTHOUGH THE TERMS COULD BE CHANGED SLIGHTLY TO ALLOW FOR THE IMPACT OF A FINAL DAMAGES AWARD STILL THE DELAY IS A DISAPPOINTMENT FOR QUALMED WHICH AT A TIME OF RAPID INDUSTRYWIDE CONSOLIDATION IS BANKING ON THE HEALTH NET ACQUISITION TO MAKE IT A MAJOR NATIONWIDE COMPETITOR IN THE MANAGEDCARE FIELD IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TUESDAY QUALMED SHARES FELL 375 CENTS TO 1675 9401050172 940105 WHO'S NEWS DIED F OTTO HAAS 78 RETIRED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROHM & HAAS CO SUNDAY IN AMBLER PA 9401050171 940105 INFORMIX SIEMENS NIXDORF PACT MENLO PARK CALIF INFORMIX SOFTWARE INC AND SIEMENS NIXDORF INFORMATIONSSYSTEME AG AGREED TO BUILD AND STAFF A RESEARCH AND DEVELOPMENT LABORATORY AT INFORMIX'S HEADQUARTERS HERE THE PURPOSE OF THE LAB IS TO MAXIMIZE THE PERFORMANCE OF SIEMENS RM400 AND RM600 HARDWARE PLATFORMS WITH THE INFORMIXONLINE DYNAMIC SERVER 60 A SOFTWARE SYSTEM FOR DATABASE MANAGEMENT INFORMIX A UNIT OF INFORMIX CORP PROVIDES DATABASE TECHNOLOGY TO BUILD DEPLOY AND RUN APPLICATIONS SOFTWARE SIEMENS NIXDORF A UNIT OF SIEMENS AG IS AN INFORMATION TECHNOLOGY CONCERN BASED IN PADERBORN GERMANY 9401050170 940105 KOREA CLINTON'S CUBAN MISSILE CRISIS BY KAREN ELLIOTT HOUSE AS THE CLINTON ADMINISTRATION BEGINS ITS SECOND YEAR A GROUP OF OLD MEN IN THE WORLD'S VESTIGIAL COMMUNIST CAPITALS OF PYONGYANG AND BEIJING ARE ABOUT TO FORCE THE CLINTONITES TO DO WHAT CAME HARDEST IN 1993 MAKE DIFFICULT FOREIGN POLICY DECISIONS EVIDENCE MOUNTS THAT NORTH KOREA ALREADY HAS NUCLEAR WEAPONS THE CLINTON ADMINISTRATION CAN NO LONGER INDULGE THE FANTASY THAT SOME PACKAGE OF ECONOMIC AND POLITICAL INCENTIVES WILL INDUCE NORTH KOREA TO ABANDON ITS DETERMINATION TO OWN AND PROBABLY EXPORT NUCLEAR WEAPONS LIKEWISE IN DEALING WITH CHINA THE NATION WITH THE MOST LIKELY LEVERAGE ON NORTH KOREA THE US CAN NO LONGER INDULGE THE PRETENSE THAT HUMAN RIGHTS IS THE HIGHEST AMERICAN PRIORITY WHEN CHINA NOT ONLY TACITLY SUPPORTS NORTH KOREA BUT ITSELF EXPORTS NUCLEAR AND MISSILE TECHNOLOGY TO SOME OF THE WORLD'S LEAST STABLE NATIONS INCLUDING IRAN WHAT'S AT STAKE FOR AMERICA IN NORTH ASIA THIS WINTER IS NOTHING LESS THAN THE SAFETY OF 37000 US TROOPS IN SOUTH KOREA THE SECURITY OF SOUTH KOREA ITSELF AND THE STABILITY AND PROSPERITY OF ASIA PRESIDENT CLINTON ISN'T THE FIRST TO FACE A HISTORIC DECISION IN WHICH ALL CHOICES LOOK GRIM BUT IN WHICH THE WORST CHOICE OF ALL IS INDECISION FOR THE KENNEDY ADMINISTRATION MOSCOW'S ATTEMPT TO BASE NUCLEAR MISSILES IN CUBA WAS SUCH A MOMENT FOR PRESIDENT REAGAN IT WAS THE DECISION TO INSTALL PERSHING II MISSILES IN WESTERN EUROPE DESPITE SOVIET THREATS FOR GEORGE BUSH SUCH A MOMENT WAS DECIDING TO GO TO WAR TO REVERSE IRAQ'S AGGRESSION FOR THE PAST YEAR THE COMPONENTS OF A KOREAN CRISIS HAVE BEEN STEADILY BUILDING NORTH KOREA HAS REFUSED REGULAR INSPECTIONS OF ITS YONGBYON REACTOR SOME 50 MILES NORTH OF PYONGYANG HEIGHTENING CONCERN IT IS PRODUCING WEAPONSGRADE PLUTONIUM A PARTIAL INSPECTION CONVINCED EXPERTS THAT NORTH KOREA HAD PRODUCED PLUTONIUM SOME 26 POUNDS OR ENOUGH FOR SEVERAL BOMBS BY US ESTIMATES THIS WEEK BROUGHT REPORTS THAT PYONGYANG WILL ALLOW LIMITED INSPECTIONS BUT THIS IS INSUFFICIENT TO SATISFY INTERNATIONAL EXPERTS THE RESPONSE OF THE US AND NORTH KOREA'S NEIGHBORS IS A COMBINATION OF WISHFUL THINKING AND PASSTHEBUCK JAPAN IN RANGE OF NORTH KOREA'S NEWEST MISSILES HAS ASSUMED ITS NORMAL OSTRICH STANCE PRETENDING THE PROBLEM WILL SOMEHOW GO AWAY MEANWHILE TOKYO IS NORTH KOREA'S MAJOR SOURCE OF DESPERATELY NEEDED HARD CURRENCY WITH REMITTANCES OF ALMOST 600 MILLION ANNUALLY FROM NORTH KOREAN IMMIGRANTS AND SYMPATHIZERS IN JAPAN SOUTH KOREA FACES THE MOST DIRECT THREAT ITS CAPITAL CITY IS LESS THAN 50 MILES FROM THE NORTH KOREAN BORDER YET ITS NEW DOMESTIC PRESIDENT KIM YOUNG SAM DITHERS LIKE HIS COUNTERPART IN WASHINGTON IN AN INTERVIEW DURING HIS NOVEMBER US VISIT PRESIDENT KIM CAREFULLY AVOIDED ANY POSITION THAT WOULD PUT HIM OUT IN FRONT OF PRESIDENT CLINTON MEANWHILE MR CLINTON'S ADVISERS STRESS THAT THE US CAN'T CONFRONT THE NORTH BECAUSE WASHINGTON MUSTN'T BE OUT IN FRONT OF JAPAN AND SOUTH KOREA IF THERE IS A SOLUTION TO THE NORTH KOREAN PROBLEM SHORT OF DIRECT AND LIKELY MILITARY CONFRONTATION IT PROBABLY LIES IN BEIJING WITHOUT THE SOVIET UNION CHINA IS PYONGYANG'S ONLY POLITICAL ALLY AND THE MAJOR SOURCE OF THE OIL THAT KEEPS NORTH KOREA'S INDUSTRY RUNNING CHINA CLAIMS TO PLAY A CONSTRUCTIVE ROLE BUT IF SO THE RESULTS DON'T BEAR IT OUT HERE TOO US POLICY IS WARPED BY PERIPHERAL VISION THERE'S NO VISIBLE EVIDENCE WASHINGTON HAS SERIOUSLY SOUGHT TO INDUCE CHINA'S COOPERATION AGAINST NORTH KOREA DESPITE SIGNIFICANT US INTEREST AND LEVERAGE THE PACE OF CHINA'S EXTRAORDINARY ECONOMIC MOMENTUM DEPENDS IN NO SMALL PART ON CONTINUED ACCESS TO THE US MARKET AMERICAN INVESTMENT AND US TECHNOLOGY CHINA'S LEADERS UNDERSTAND THEIR POLITICAL SURVIVAL DEPENDS ON RAPID ECONOMIC GROWTH SO WHILE THE US CAN'T SINGLEHANDEDLY BLOCK CHINA'S ECONOMIC DEVELOPMENT IT CAN SLOW GROWTH SUFFICIENTLY TO PUT AT RISK CHINA'S POLITICAL STABILITY THE NIGHTMARE OF BEIJING'S LEADERS IN SHORT THERE IS A PRESSURE POINT THUS A START FOR A REALISTIC POLICY IS TO SET AMERICA'S PRIORITIES STRAIGHT IN AN IMPERFECT WORLD THIS MEANS CHOOSING BETWEEN CRUSADING FOR HUMAN RIGHTS OR STANCHING NUCLEAR PROLIFERATION THUS FAR THE PRESIDENT CURRYING FAVOR WITH CONGRESSIONAL DEMOCRATS HAS PRESSED HUMAN RIGHTS BUT WHAT MATTERS MOST TO AMERICA'S SECURITY ISN'T THE FATE OF CHINESE DISSIDENTS BUT THE FATE OF AMERICAN TROOPS IN SOUTH KOREA AND OF AMERICAN ALLIES FROM SOUTH KOREA TO SAUDI ARABIA WHO ARE WITHIN REACH OF NUCLEAR WEAPONS AND MISSILES BEING EXPORTED BY NORTH KOREA AND CHINA THE POINT ISN'T TO CODDLE CHINA BUT TO GET TOUGH ON THE RIGHT ISSUE SURELY MR CLINTON CAN MAKE CONGRESS SEE THIS AN ESSENTIAL NEXT STEP IS TO DROP THE DELUSION THAT NORTH KOREA IS JUST ANOTHER POOR MISUNDERSTOOD THIRD WORLD COUNTRY THAT CAN BE LURED INTO THE COMMUNITY OF NATIONS BY A COMBINATION OF ECONOMIC INCENTIVES AND POLITICAL APPEASEMENT NORTH KOREA ISN'T BUILDING NUCLEAR WEAPONS BECAUSE IT FEELS UNLOVED PYONGYANG BUILDS BOMBS BECAUSE IT IS THE VERY LAST OF TOTALITARIAN COMMUNIST REGIMES A SLAVESYSTEM RULED BY A DELUSIONARY DESPOT AND HIS POWERHUNGRY SON WHO CLING TO THE MAD DREAM OF RULING THE ENTIRE KOREAN PENINSULA THEY CAN'T BE SWAYED BY DEFT DIPLOMACY OR THE PROMISE OF ECONOMIC PROGRESS FOR THEIR PEOPLE INDEED A LARGE PART OF THE REASON NORTH KOREANS HAVE BEEN REDUCED TO ONE MEAL A DAY IS THAT KIM IL SUNG AND HIS SON HAVE DIVERTED THE NATION'S SCARCE RESOURCES TO BUILDING A BOMB DESIGNED TO ENTRENCH AND ENHANCE THEIR POWER SO THE NORTH'S NUCLEAR AMBITIONS CAN'T BE BLOCKED BY A COMING TOGETHER OF THE INTERNATIONAL COMMUNITY OR THE PEREGRINATIONS OF UNITED NATIONS' OFFICIALS TO PYONGYANG NORTH KOREA'S BEHAVIOR CONCEIVABLY CAN BE AFFECTED BY JAPAN AND CHINA IF THEY IN TURN CAN BE PRODDED TO DENY PYONGYANG FUNDS AND FUEL THIS MEANS PUTTING IN PLACE NOW A TOTAL EMBARGO OF NORTH KOREA INCLUDING A NAVAL BLOCKADE BY US AND JAPANESE WARSHIPS CHINA MUST SHUT ITS OVERLAND BORDER TO NORTH KOREA BUT MAY BE EXCUSED FROM PROVIDING NAVAL VESSELS TO CONFRONT ITS OLD ALLY NOT SO JAPAN WHAT REASON AFTER ALL IS THERE FOR JAPAN TO HAVE A POWERFUL NAVY BUT FOR ITS OWN DEFENSE THE TIME TO DO THIS IS YESTERDAY YET THE US ADMINISTRATION REMAINS DIVIDED BETWEEN DOVES WHOSE AIM IS TO AVOID ANY CONFRONTATION WITH NORTH KOREA AND HAWKS WHO BELIEVE THAT BY INCHING THEIR WAY TOWARD ECONOMIC SANCTIONS IN CONCERT WITH THE UN THEY CAN SOMEHOW BRING CHINA AND JAPAN ALONG THE DIFFERENCE IS BETWEEN APPEASEMENT NOW AND FAILURE LATER THE REASON JAPAN CAN'T BE COUNTED ON TO TAKE A STAND EVEN WHEN ITS OWN INTEREST IS AT STAKE CHINA BY CONTRAST CAN BE COUNTED ON TO TAKE A STAND ONLY WHEN ITS OWN INTEREST IS AT STAKE AND CHINA DOESN'T TRULY FEAR A NORTH KOREAN BOMB FOR THESE DIVERSE REASONS BOTH LARGELY DUCKED ENGAGEMENT IN THE WAR AGAINST IRAQ TO ENSURE A DIFFERENT OUTCOME ON NORTH KOREA THE US MUST PLAY HARDBALL NOW WITH JAPAN AND CHINA THIS MEANS FORCING JAPAN TO FACE THE GRIM REALITY THAT IT NOW IS SURROUNDED BY THREE NUCLEAR NATIONS RUSSIA CHINA AND NORTH KOREA AND MORE IMPORTANT THAT AMERICA'S NUCLEAR UMBRELLA WILL SHIELD JAPAN ONLY IF IT ACTS TO PROTECT ITS OWN INTERESTS IN SHORT MR CLINTON HAD BETTER ASK JAPAN WHY THE US SHOULD RISK WAR TO PROTECT A NATION THAT APPEASES NORTH KOREA WITH HARD CURRENCY WITH CHINA AMERICA SHOULD WIELD BOTH CARROT AND STICK THE CARROT A CLEAR INDICATION THAT THE US WILL PRESERVE AND EXPAND ECONOMIC TIES IF CHINA COOPERATES ON NUCLEAR NONPROLIFERATION IN SHORT A NEW STRATEGIC UNDERSTANDING BETWEEN BEIJING AND WASHINGTON TO REPLACE THEIR NOW DEFUNCT ANTISOVIET ALLIANCE AT THE SAME TIME THE US MUST UNDERSCORE TO CHINA THAT ITS TOLERANCE OF NORTH KOREA'S JOINING THE NUCLEAR CLUB RISKS THE ADDITION OF A FAR MORE POWERFUL MEMBER JAPAN WHILE CHINA SEES LITTLE REASON TO FEAR A NUCLEAR NORTH KOREA IT HAS EVERY REASON TO FEAR A NUCLEAR JAPAN AN EMBARGO OF NORTH KOREA SEEMS PREFERABLE TO OTHER OPTIONS A DIRECT MILITARY STRIKE ON PYONGYANG'S NUCLEAR INSTALLATIONS IS RISKY BOTH BECAUSE SOME APPARENTLY ARE HARDENED TO SURVIVE AIR STRIKES AND BECAUSE A DIRECT HIT ON STORED PLUTONIUM RISKS SPREADING NUCLEAR CONTAMINATION ACROSS BOTH KOREAS AT THE OTHER EXTREME PLAYING OUT A POLICY OF INCREMENTALISM ON A WORLD STAGE WITH ENDLESS UN PLEAS FOR RESTRAINT RAISES THE RISK OF A PREEMPTIVE NORTH KOREAN STRIKE ON US TROOPS IN SOUTH KOREA THE ONE LESSON DICTATORS LIKE KIM IL SUNG LEARNED FROM IRAQ'S DEFEAT IS NOT TO LET AMERICA CHOOSE THE HOUR OF CONFRONTATION IN DEALING WITH ISOLATED EGOMANIACS LIKE SADDAM AND KIM IT PAYS TO ASSUME THE WORST THAT WAR ISN'T ANATHEMA TO THEM THUS IN THE MIND OF KIM IL SUNG HIS NEW WEAPONRY PUTS HIM IN A WINWIN SITUATION HE CAN USE THE NUCLEAR THREAT TO BLACKMAIL SOUTH KOREA AND THE US WHICH HE ALREADY HAS SUCCEEDED IN DOING BY CAUSING BOTH TO CANCEL JOINT MILITARY EXERCISES AND UNILATERALLY TO DECLARE SOUTH KOREA A NONNUCLEAR ZONE OR AT WHATEVER POINT THE BLACKMAIL FAILS TO YIELD RESULTS HE CAN PRECIPITATE A MILITARY CONFLICT INCLUDING USE OF HIS NASCENT NUCLEAR WEAPONS THAT THIS WOULD RESULT IN DEVASTATING HUMAN CONSEQUENCES FOR HIS OWN COUNTRYMEN IS IRRELEVANT TO HIM ONE NEED ONLY LOOK AT THE INSTRUCTIVE EXAMPLE OF SADDAM HUSSEIN TO SEE HOW CHEAP HUMAN LIFE IS TO DICTATORS THE FACT THAT NUCLEAR BLACKMAIL WASN'T AN ELEMENT IN THE IRAQ WAR WAS THANKS ONLY TO A PREEMPTIVE STRIKE ON SADDAM'S NUCLEAR REACTOR BY ISRAEL A DECADE BEFORE JUST AS DESPOTS DO NOT SHY FROM MILITARY CONFRONTATION SO TOO MUST AMERICA BE WILLING TO FACE THAT PROSPECT THE ALTERNATIVE IS THE CERTAINTY OF STEADILY BEING BLACKMAILED BY NORTH KOREA NOW AND BY PROSPECTIVE NUCLEAR NATIONS LIKE IRAN A LITTLE LATER WHILE THESE ARE UNPLEASANT SUBJECTS NUCLEAR WEAPONRY REMAINS THE REAL ARBITER OF POWER IN A WORLD THAT STILL INCLUDES ZEALOTS AND MADMEN THUS MR CLINTON HAS TO DO WHAT PRESIDENT KENNEDY DID THREE DECADES AGO FACE DOWN NUCLEAR BLACKMAIL MS HOUSE IS VICE PRESIDENT INTERNATIONAL OF DOW JONES 9401050169 940105 CALIFORNIA MICROWAVE CONTRACT SUNNYVALE CALIF CALIFORNIA MICROWAVE INC SAID ITS AIRBORNE SYSTEMS INTEGRATION DIVISION RECEIVED 316 MILLION IN CONTRACT OPTIONS FROM THE US ARMY FOR ADDITIONAL AIRBORNE RECONNAISSANCE LOW SYSTEMS THE SATELLITE AND WIRELESS COMMUNICATIONS CONCERN SAID THE AWARD INCLUDES FUNDS TO DESIGN AND INTEGRATE TWO ARL AIRCRAFT AND SPARE EQUIPMENT AND TO CONTINUE SUPPORT OF AN EXISTING SYSTEM THAT IT DELIVERED TO THE ARMY LAST YEAR 9401050168 940105 WHO'S NEWS DISCOVERY ZONE INC DISCOVERY ZONE INC CHICAGO JAMES H GARDNER 50 YEARS OLD FORMERLY CHIEF OPERATING OFFICER AND A DIRECTOR OF KINDERCARE LEARNING CENTERS INC WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS OPERATOR AND FRANCHISER OF INDOOR PLAY ENVIRONMENTS FOR CHILDREN HE SUCCEEDS GERALD E SEEGERS 60 WHO WAS NAMED TO THE NEW POST OF VICE CHAIRMAN 9401050167 940105 WHO'S NEWS ALFIN INC ALFIN INC NEW YORK LAWRENCE PESIN 58 YEARS OLD HAS RESIGNED AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS FRAGRANCE AND COSMETICS MAKER ALFIN CHAIRMAN MAYER D MOYAL SAID MR PESIN HAD BEEN WITH THE COMPANY FOR JUST EIGHT MONTHS AND LEFT FOR PERSONAL REASONS MR MOYAL WILL ASSUME THE ADDITIONAL POSITION OF CHIEF EXECUTIVE OFFICER PENDING THE APPOINTMENT OF A NEW PRESIDENT 9401050166 940105 WHO'S NEWS KMART CORP KMART CORP TROY MICH DONALD W KEEBLE 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT MERCHANDISING AND OPERATIONS AT THIS RETAILER MR KEEBLE FORMERLY SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE MANAGER OF FASHIONS SUCCEEDS GLENN B SMITH 64 WHO RETIRED EFFECTIVE JAN 1 AFTER 40 YEARS WITH THE COMPANY ALSO KMART NAMED PAUL J HUEBER SENIOR VICE PRESIDENT SALES AND OPERATIONS A NEW POSITION MR HUEBER 45 WAS PREVIOUSLY VICE PRESIDENT OF THE WEST/CENTRAL REGION 9401050165 940105 WHO'S NEWS GOODYEAR TIRE & RUBBER CO GOODYEAR TIRE & RUBBER CO AKRON OHIO HOYT M WELLS 67 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE NEW POST OF VICE CHAIRMAN OF THIS TIRE MAKER MR WELLS WILL CONTINUE AS CHIEF OPERATING OFFICER GOODYEAR SAID THE POST OF COMPANY PRESIDENT HAS BEEN DISCONTINUED MR WELLS WHO HAS BEEN WITH THE COMPANY FOR 42 YEARS HAS SERVED ON ITS BOARD SINCE 1988 9401050164 940105 DRUG EMPORIUM'S CREDIT COLUMBUS OHIO DRUG EMPORIUM INC SAID IT ENTERED AN EXPANDED SECURED CREDIT AGREEMENT WITH BANK ONE OF COLUMBUS AND NATIONAL CITY BANK THE CHAIN SAID INITIAL FUNDS BORROWED UNDER THE AGREEMENT WILL BE USED TO PAY OFF BORROWINGS UNDER A PREVIOUS LINE OF CREDIT WITH BANK ONE THAT CREDIT LINE IS DUE TO EXPIRE IN 1996 THE NEW AGREEMENT CONSISTS OF A REVOLVING CREDIT LINE OF UP TO 30 MILLION AND AN ADDITIONAL TERM DEBT OF 15 MILLION DRUG EMPORIUM IS A NATIONAL CHAIN OF 132 COMPANYOWNED AND 102 FRANCHISED STORES SPECIALIZING IN HEALTH AND BEAUTY AIDS COSMETICS AND PRESCRIPTION DRUGS 9401050163 940105 WHO'S NEWS UNIQUE MOBILITY INC UNIQUE MOBILITY INC GOLDEN COLO FRANK HODSOLL WAS NAMED A DIRECTOR OF THIS ENGINEERING AND MANUFACTURING CONCERN FILLING ONE OF TWO VACANCIES ON A SEVENSEAT BOARD MR HODSOLL 55 YEARS OLD IS A BUSINESS AND GOVERNMENT CONSULTANT AND A FORMER DEPUTY DIRECTOR FOR MANAGEMENT AT THE FEDERAL OFFICE OF MANAGEMENT AND BUDGET 9401050162 940105 ICH COMPLETES REDEMPTION LOUISVILLE KY ICH CORP SAID IT COMPLETED REDEMPTION OF THE REMAINING 458 MILLION PRINCIPAL AMOUNT OF ITS 165 SENIOR SUBORDINATED DEBENTURES DUE 1994 THE COMPANY SAID THE REDEMPTION WILL REDUCE ICH'S ANNUAL INTEREST EXPENSE BY 76 MILLION ICH IS A HOLDING COMPANY FOR INDIVIDUAL AND GROUP HEALTH INSURANCE SUBSIDIARIES 9401050161 940105 INTERNATIONAL PENTLAND GROUP ACQUIRES ELLESSE LONDON UK SPORTINGGOODS CONCERN PENTLAND GROUP PLC SAID IT BOUGHT A 90 INTEREST IN ELLESSE SPA THE ITALIAN SPORTSEQUIPMENT COMPANY PENTLAND WHICH HAS DISTRIBUTED ELLESSE CLOTHING IN THE UK SINCE 1981 SAID IT PAID ABOUT 20 MILLION 295 MILLION CASH FOR ELLESSE INCLUDING ITS TRADEMARKS AND OTHER INTELLECTUAL PROPERTY OUTSIDE THE US CANADA AND JAPAN STOCK DEBTORS AND CERTAIN FIXED ASSETS PENTLAND SAID THAT ELLESSE WILL BECOME ELLESSE INTERNATIONAL SPA WITH FOUNDER LEONARDO SERVADIO OWNING 10 ELLESSE'S 1992 PRETAX PREINTEREST PROFIT WAS 18 MILLION ELLESSE WILL KEEP ITS HEADQUARTERS IN PERUGIA ITALY PENTLAND SAID 9401050160 940105 BOMBAY CO SALES UP 46 FORT WORTH TEXAS BOMBAY CO SAID SALES FOR THE FIVE WEEKS ENDED SUNDAY ROSE 46 TO 668 MILLION FROM 458 MILLION IN THE COMPARABLE PERIOD A YEAR AGO ENDING DEC 27 1992 SALES IN STORES OPEN AT LEAST A YEAR ROSE 26 FOR THE FIVE WEEKS THE SPECIALTY HOME FURNISHINGS RETAILER SAID 9401050159 940105 WHO'S NEWS UNITED SYSTEMS TECHNOLOGY INC UNITED SYSTEMS TECHNOLOGY INC IRVING TEXAS THOMAS E GIBBS WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE CONCERN SUCCEEDING JORDAN ISSACKEDES WHO RESIGNED LAST WEEK MR ISSACKEDES 62 YEARS OLD WILL REMAIN A DIRECTOR MR GIBBS 45 WAS PRESIDENT OF SCT PUBLIC SECTOR LEXINGTON KY A UNIT OF SYSTEMS & COMPUTER TECHNOLOGY CORP MALVERN PA AS PART OF THE MANAGEMENT CHANGE RON KELLER 49 RESIGNED AS CHIEF OPERATING OFFICER THE COMPANY DOESN'T PLAN TO NAME A SUCCESSOR TO MR KELLER 9401050158 940105 TECHNOLOGY & HEALTH BRISTOLMYERS PLANS TO REDUCE STAFF BY 5000 PEOPLE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BRISTOLMYERS SQUIBB CO ANNOUNCING ITS THIRD ROUND OF JOB CUTS SAID IT WILL PARE 5000 PEOPLE OR 10 OF ITS WORK FORCE OVER THE NEXT TWO YEARS THE LATEST CUTS BRING THE COMPANY'S TOTAL WORKFORCE REDUCTIONS TO 7200 INCLUDED IN THE LATEST GROUP OF 5000 EMPLOYEES ARE 1500 WHO ELECTED EARLY RETIREMENT UNDER A PROGRAM ANNOUNCED IN SEPTEMBER IN OCTOBER 1992 BRISTOLMYERS ANNOUNCED IT WOULD CUT ABOUT 2200 JOBS THE BRISTOLMYERS MOVE BRINGS TOTAL WORK FORCE REDUCTIONS IN THE PHARMACEUTICAL INDUSTRY TO ABOUT 34000 JOBS OVER THE PAST 15 MONTHS ACCORDING TO THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION THE JOB CUTS REFLECT THE INDUSTRY'S STRUGGLE WITH SLOWER RATES OF GROWTH IN REVENUE AND PROFIT AS PRESSURE ON PRICES INTENSIFIED DURING THE PAST FEW YEARS BRISTOLMYERS DIDN'T SPECIFY THE COST OF THE CURRENT ROUND OF JOB LOSSES AND RESTRUCTURING BUT A SPOKESMAN POINTED TO AN 890 MILLION CHARGE TAKEN AGAINST THE FOURTHQUARTER 1992 EARNINGS FOR FUTURE RESTRUCTURING COSTS OVER THE NEXT TWO YEARS AS SPECIFIC DETAILS OF OUR RESTRUCTURING ACTIVITIES ARE DETERMINED WE WILL REVIEW THE ADEQUACY OF OUR RESTRUCTURING RESERVES THE SPOKESMAN SAID I SEE THESE AS NECESSARY ACTIONS BUT I WOULD LIKE TO SEE A MORE PROACTIVE APPROACH TO WHAT SHOULD BE ONE OF THEIR KEY CONCERNS A HIGH PORTION OF THEIR PHARMACEUTICAL SALES IS SUBJECT TO THERAPEUTIC OR GENERIC SUBSTITUTION SAID KRISTINE BRYAN AN ANALYST AT SG WARBURG & CO THE RESTRUCTURING WILL INVOLVE THE COMPANY'S FOUR CORE HEALTHCARE AND CONSUMER BUSINESSES AND HEADQUARTER STAFF BUT THE INITIAL FOCUS IS ON THE SALES AND MARKETING OPERATIONS OF ITS PHARMACEUTICAL BUSINESS REORGANIZING THE PHARMACEUTICAL GROUP'S US AND EUROPEAN BUSINESS AND OTHER ACTIONS ACCOUNT FOR 3000 OF THE 5000 JOB LOSSES 9401050156 940105 WHO'S NEWS DIVERSIFIED COMMUNICATIONS INDUSTRIES LTD DIVERSIFIED COMMUNICATIONS INDUSTRIES LTD WEST PALM BEACH FLA CHARLES T CONNER 57 YEARS OLD WAS NAMED TO THE NEW POST OF VICE CHAIRMAN OF THIS HOLDING COMPANY WITH INTERESTS IN ELECTRONIC PRODUCTS AND PARTS FOR THE TELECOMMUNICATIONS INDUSTRY MR CONNER WHO HAS BEEN A BOARD MEMBER FOR SEVERAL YEARS AND WILL RETAIN THAT POSITION FORMERLY SERVED AS MANAGER OF CASH AND FORECASTING FOR CONRAIL INC 9401050155 940105 WESTERN RESOURCES REDEMPTION TOPEKA KAN WESTERN RESOURCES INC SAID IT EXPECTS TO PAY APPROXIMATELY 26 MILLION TO REDEEM ITS 8 1/2 SERIES FIRST MORTGAGE BONDS DUE 1997 THE REDEMPTION DATE WILL BE JAN 31 THE NATURALGAS SERVICE COMPANY SAID IT WILL PAY A REDEMPTION PRICE OF 1013 PLUS ACCRUED INTEREST TO THE REDEMPTION DATE A SPOKESWOMAN FOR WESTERN RESOURCES SAID THE COMPANY IS REDEEMING THE BONDS SO THAT IT CAN TAKE ADVANTAGE OF LOWER INTEREST RATES 9401050153 940105 INTERNATIONAL HAVAS ALSTHOM LIFT CEP STAKE PARIS FRENCH COMMUNICATIONS AND TRAVEL GROUP HAVAS SA AND ALCATELALSTHOM NV'S GENERALE OCCIDENTALE UNIT HAVE INCREASED THEIR STAKES IN CEP COMMUNICATION A PUBLISHING GROUP BY BUYING THE INTERESTS OF CIE DE SUEZ 9401050152 940105 WHO'S NEWS FORTUNE PETROLEUM CORP FORTUNE PETROLEUM CORP AGOURA HILLS CALIF WILLIAM T WALKER JR WAS ELECTED A DIRECTOR OF THE INDEPENDENT OIL AND GAS CONCERN FILLING A LONGSTANDING VACANCY MR WALKER 62 YEARS OLD IS FOUNDER OF WALKER ASSOCIATES HE ALSO SERVES AS A DIRECTOR OF CMS ENHANCEMENTS INC AND GOVIDEO INC 9401050151 940105 WHO'S NEWS FIGGIE INTERNATIONAL INC FIGGIE INTERNATIONAL INC WILLOUGHBY OHIO MARCQ H KAUFMANN 68 YEARS OLD WAS APPOINTED PRESIDENT OF THE COMPANY'S PACKAGING SYSTEMS DIVISION MR KAUFMANN SUCCEEDS WILLIAM KRISS WHO LEFT TO JOIN ANOTHER COMPANY MR KAUFMANN IS CURRENTLY PRESIDENT OF FIGGIE INTERNATIONAL'S EUROPEAN OPERATIONS AND A CORPORATE VICE PRESIDENT HE WILL RETAIN THESE RESPONSIBILITIES FIGGIE INTERNATIONAL IS A DIVERSIFIED COMPANY SERVING CONSUMER INDUSTRIAL TECHNICAL AND SERVICE MARKETS WORLDWIDE 9401050150 940105 DANIELSON TO BUY FIRM'S ASSETS NEW YORK DANIELSON HOLDING CORP SAID IT AGREED TO ACQUIRE THE ASSETS OF WESTERN TRUST SERVICES A UNIT OF GROSSMONT BANK OF LA MESA CALIF TERMS WEREN'T DISCLOSED DANIELSON IS MAKING THE ACQUISITION THROUGH ITS DANIELSON TRUST UNIT WHICH HAS 36 BILLION IN ASSETS UNDER ADMINISTRATION WESTERN TRUST SERVICES OF SAN DIEGO HAS MORE THAN 800 MILLION IN ASSETS 9401050149 940105 HAROLD'S STORES DECEMBER SALES NORMAN OKLA HAROLD'S STORES INC SAID SALES FOR DECEMBER INCREASED 243 TO 89 MILLION FROM 71 MILLION SAMESTORE SALES AT THE SPECIALTY APPAREL STORE CHAIN INCREASED 62 9401050148 940105 WHO'S NEWS BORLAND INTERNATIONAL INC BORLAND INTERNATIONAL INC SCOTTS VALLEY CALIF DAVID LIDDLE 48 YEARS OLD WAS ELECTED TO THE BOARD OF THIS APPLICATION DEVELOPMENT SOFTWARE CONCERN HE IS PRESIDENT OF CLOSELY HELD RESEARCH AND DEVELOPMENT CONCERN INTERVAL RESEARCH CORP OF PALO ALTO CALIF HE ALSO FOUNDED METAPHOR COMPUTER SYSTEMS INC A SOFTWARE CONCERN THAT WAS PURCHASED BY INTERNATIONAL BUSINESS MACHINES CORP IN OCTOBER 1991 HIS ELECTION EXPANDS BORLAND'S BOARD TO FIVE MEMBERS 9401050147 940105 HOME FEDERAL STAKE IS INCREASED SAN FRANCISCO HOME FEDERAL FINANCIAL CORP SAID A NEW YORK INVESTOR GROUP INCLUDING DELTEC INTERNATIONAL SA RECENTLY RAISED ITS STAKE IN THE COMPANY TO 23 OR 765591 SHARES THE GROUP ACQUIRED ITS SHARES BETWEEN DEC 13 AND 22 AT BETWEEN 1875 AND 1962 A SHARE THE GROUP SAID IT INTENDS TO ACQUIRE ADDITIONAL SHARES OF HOME FEDERAL WITH THE OBJECTIVE OF OWNING 25 OF THE SHARES OUTSTANDING HOME FEDERAL IS THE PARENT COMPANY OF HOME FEDERAL SAVINGS & LOAN ASSOCIATION OF SAN FRANCISCO 9401050146 940105 WHO'S NEWS TELIOS PHARMACEUTICALS INC TELIOS PHARMACEUTICALS INC SAN DIEGO ROBERT J ERICKSON PRESIDENT AND CHIEF EXECUTIVE OFFICER RESIGNED FOR HEALTH REASONS THEODOR H HEINRICHS THE 65YEAROLD CHAIRMAN OF THE THERAPEUTIC PRODUCTS CONCERN IS ASSUMING THE ADDITIONAL DUTIES OF CHIEF EXECUTIVE UNTIL A NEW CHIEF IS RECRUITED DR ERICKSON 51 REMAINS A DIRECTOR 9401050145 940105 ANTHEM TO SELL UNIT TO ARTISOFT SAN JOSE CALIF ANTHEM ELECTRONICS INC SAID IT AGREED TO SELL ITS EAGLE TECHNOLOGY BUSINESS UNIT TO ARTISOFT INC FOR 99 MILLION AS A RESULT OF THE TRANSACTION ANTHEM WILL RECORD A FOURTHQUARTER PRETAX RESTRUCTURING CHARGE OF LESS THAN 8 MILLION IN THE YEAREARLIER QUARTER ENDED DEC 31 1992 ANTHEM HAD NET OF 79 MILLION OR 64 CENTS A SHARE ON 150 MILLION IN REVENUE EAGLE IS A MAKER OF COMPUTER HARDWARE USED TO CONNECT COMPUTERS ANTHEM DISTRIBUTES SEMICONDUCTOR AND COMPUTER PARTS INCLUDING DISK DRIVES ARTISOFT IN TUCSON ARIZ DEVELOPS AND MAKES NETWORK COMMUNICATION SYSTEMS 9401050144 940105 DIVIDEND NEWS IDB COMMUNICATIONS GROUP INC IDB COMMUNICATIONS GROUP INC A LOS ANGELES TELECOMMUNICATIONS CONCERN DECLARED A 3FOR1 STOCK SPLIT AND A 5 STOCK DIVIDEND THE ADDITIONAL SHARES WILL BE DISTRIBUTED ON OR ABOUT FEB 28 TO STOCK OF RECORD JAN 31 IDB SAID THE ACTIONS REFLECT ITS STRONG FINANCIAL PERFORMANCE LAST YEAR AND ITS AIM TO ENHANCE ITS SHARES' ATTRACTIVENESS BY REDUCING THEIR INDIVIDUAL COST FOLLOWING THE STOCK SPLIT AND 5 DIVIDEND IDB WILL HAVE ABOUT 712 MILLION SHARES OUTSTANDING 9401050143 940105 SEAGULL COMPLETES ACQUISITION HOUSTON SEAGULL ENERGY CORP SAID IT COMPLETED THE 2029 MILLION ACQUISITION OF NOVALTA RESOURCES INC THE OIL AND GAS EXPLORATION SUBSIDIARY OF NOVA CORP OF ALBERTA SEAGULL SAID THE ACQUISITION WAS FUNDED THROUGH A NEW CREDIT FACILITY PROVIDED BY A GROUP OF 10 CANADIAN BANKS SEAGULL ESTIMATED THAT NOVALTA HAS NATURALGAS RESERVES OF 260 BILLION CUBIC FEET CONCENTRATED IN ALBERTA 9401050142 940105 INTERNATIONAL HONG KONG RETAIL SALES RISE HONG KONG HONG KONG GOVERNMENT RETAIL SALES DATA SHOW PROVISIONAL SALES IN OCTOBER GREW 14 TO 153 BILLION HONG KONG DOLLARS US198 BILLION EXCLUDING INFLATIONARY PRESSURES SALES WERE AHEAD 7 IN VOLUME TERMS THE GOVERNMENT ATTRIBUTED THE INCREASE TO STRONG GROWTH IN SPENDING ON CLOTHING AND FOOTWEAR AS WELL AS ON JEWELRY WATCHES AND CLOCKS AND VALUABLE GIFTS COMPARING THE FIRST 10 MONTHS OF THE YEAR WITH THE SAME PERIOD IN 1992 RETAIL SALES ROSE BY 13 IN VALUE AND 7 IN VOLUME 9401050140 940105 WHO'S NEWS INTERNATIONAL YOGURT CO INTERNATIONAL YOGURT CO PORTLAND ORE CHARLES E CARLBOM 59 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OF CLOSELY HELD WESTERN FAMILY FOODS INC TIGARD ORE WAS NAMED TO THE BOARD OF THIS MAKER AND WHOLESALER OF FROZEN YOGURT CARL G BEHNKE 48 PRESIDENT OF CLOSELY HELD REB ENTERPRISES INC SEATTLE WAS ALSO NAMED A DIRECTOR THEIR APPOINTMENTS EXPAND THE SIZE OF THE BOARD TO EIGHT FROM SIX 9401050138 940105 TREASURY PLANS TO RAISE 500 MILLION IN OFFERING WASHINGTON THE TREASURY PLANS TO RAISE 500 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 252 BILLION IN SHORTTERM BILLS TO REDEEM 257 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON APRIL 14 AND JULY 14 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794J96 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794M43 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9401050137 940105 CITIBANK APPLE COMPUTER LINK TO OFFER CREDIT CARDS IN THE LATEST EFFORT BY A CREDITCARD ISSUER TO TEAM UP WITH A CONSUMERPRODUCT COMPANY CITICORP'S CITIBANK UNIT AND APPLE COMPUTER INC ARE OFFERING MASTERCARD AND VISA CARDS THAT WILL PRODUCE REBATES TOWARD PURCHASES OF APPLE HARDWARE SOFTWARE AND PERIPHERALS CARD MEMBERS WILL EARN CREDITS EQUAL TO 25 OF THE FIRST 3000 OF PURCHASES MADE WITH THE CARD AND 5 OF ADDITIONAL CHARGES UP TO A MAXIMUM OF 500 A YEAR OR 1500 OVER ANY THREEYEAR PERIOD CARD USERS MAY REDEEM CREDITS FOR PURCHASES AS SMALL AS 20 OR CONTRIBUTE THEIR REBATES TO AN APPLE PROGRAM THAT DONATES COMPUTERS TO SCHOOLS THE CITIBANKAPPLE CARD IS THE LATEST IN AN AVALANCHE OF COBRANDED CARDS THAT LINK A CARD ISSUER WITH OTHER COMPANIES OR PRODUCTS INCLUDING AIRLINES AND AUTOMOBILES FOR EXAMPLE CITIBANK THE NATION'S LARGEST CARD ISSUER HAS A COBRANDED CARD WITH FORD MOTOR CO THAT OFFERS CARDHOLDERS INCENTIVES TOWARD THE PURCHASE OF A FORD AUTOMOBILE 9401050136 940105 WHO'S NEWS CMS ENERGY CORP CMS ENERGY CORP DEARBORN MICH WILLIAM J HAENER 52 YEARS OLD FORMER EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF ANR PIPELINE CO WAS NAMED PRESIDENT OF THIS UTILITY'S CMS GAS TRANSMISSION & STORAGE CO 9401050135 940105 CYPRUS AMAX UMW AGREE ON NEW LABOR CONTRACT DENVER CYPRUS AMAX MINERALS CO SAID ITS COAL SUBSIDIARY AND THE UNITED MINE WORKERS OF AMERICA AGREED ON A NEW CONTRACT COVERING SOME 2500 MINE WORKERS AT CYPRUS AMAX COAL CO OPERATIONS IN EASTERN AND MIDWESTERN STATES THE COMPANY SAID THE PACT WHICH TOOK EFFECT DEC 30 AND RUNS UNTIL AUG 1 1998 IS ESSENTIALLY THE SAME AS THE NEW NATIONAL BITUMINOUS COAL WAGE AGREEMENT UNION WORKERS AT CYPRUS AMAX AND OTHER COMPANIES INCLUDING THOSE REPRESENTED BY THE BITUMINOUS COAL OPERATORS' ASSOCIATION RATIFIED THE AGREEMENT DEC 14 THE COMPANY SAID THE AGREEMENT'S PROVISIONS INCLUDE JOB OPPORTUNITY GUARANTEES PENSION INCREASES HEALTHBENEFIT SAFEGUARDS AND WAGE INCREASES TOTALING 130 AN HOUR THROUGH 1996 9401050134 940105 WHO'S NEWS GLOBAL INDUSTRIES BUYS A LEGEND RED ADAIR CO HOUSTON LEGENDARY OILWELL FIREFIGHTER RED ADAIR IS RETIRING FROM DAYTODAY OPERATIONS AND SELLING THE ASSETS OF THE COMPANY BEARING HIS NAME RED ADAIR CO TO GLOBAL INDUSTRIES LTD FOR DECADES MR ADAIR 78 YEARS OLD HAS BEEN THE WORLD'S BESTKNOWN FIREFIGHTER AND SNUFFER OF OIL WELLS THAT BURST OUT OF CONTROL IN WHAT THE INDUSTRY CALLS A BLOWOUT HIS FEATS WERE MEMORIALIZED IN A 1969 MOVIE CALLED HELLFIGHTERS WHICH STARRED JOHN WAYNE MR ADAIR'S MOST RECENT LARGESCALE VENTURE WAS HELPING TO PUT OUT FIRES AND PLUG WELLS IN KUWAIT AFTER TROOPS OF IRAQ'S SADDAM HUSSEIN SET OFF EXPLOSIVES WHEN THEY FLED THE COUNTRY GLOBAL AN OILSERVICE COMPANY WOULDN'T DISCLOSE THE PURCHASE PRICE OF THE CLOSELY HELD COMPANY BUT SAID IT IS NOT LARGE ENOUGH TO BE CONSIDERED MATERIAL GLOBAL SAID MR ADAIR WILL WORK FOR THE COMPANY IN A PUBLIC RELATIONS AND BUSINESS DEVELOPMENT CAPACITY 9401050133 940105 TECHNOLOGY & HEALTH KODAK TO EXPAND PHOTO CD BUSINESS TO PRINTING TRADE BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO TAPPING A NEW MARKET FOR ITS PHOTO CD SYSTEM WILL EXPAND THE TECHNOLOGY BEYOND PHOTOFINISHERS AND INTO PRINTING BUSINESSES INCLUDING THE FRANCHISE CHAIN SIR SPEEDY INC THE MOVE WILL ALLOW KODAK TO REACH MORE BUSINESS CUSTOMERS IN ADDITION TO THE LAGGING CONSUMER BASE IT ORIGINALLY TARGETED WITH PHOTO CD WHICH STORES PHOTOS ON COMPACT DISKS SO THEY CAN BE VIEWED AND EDITED ON TV SETS AND COMPUTERS BUT THE ROCHESTER NY PHOTOGRAPHY AND HEALTH COMPANY RISKS CREATING A COMPETITIVE ATMOSPHERE BETWEEN THE PRINTERS AND THE PHOTOPROCESSORS WHO HAVE NURTURED PHOTO CD SINCE IT CAME OUT IN 1992 AND WHO SUPPORT KODAK'S CORE FILM PRODUCT PHOTOPROCESSORS DEVELOP FILM WHILE PRINTERS LIKE SIR SPEEDY CAN PRODUCE PAMPHLETS AND BROCHURES USING PHOTOS THERE IS SOME SENSITIVITY THROUGHOUT THE COMPANY SO OUR PHOTOFINISHING PARTNERS WON'T THINK WE ARE ABANDONING THEM SAID MIKE HEACOCK KODAK'S BUSINESS UNIT DIRECTOR FOR OFFICE IMAGING WHAT WE HOPE IS THAT MOST OF THE PRINTERS WILL STICK TO THE KNITTING' AND USE THE SUPPORT OF PHOTOFINISHERS OUT THERE BY KNITTING MR HEACOCK WAS REFERRING TO KODAK'S LATEST PHOTO CD ADVANCEMENT WHICH ALLOWS USERS TO CREATE A SLIDE SHOW OF SORTS WITH SOUND GRAPHICS TEXT AND PHOTOS ON A DISK KODAK HOPES THIS UPDATE KNOWN AS PORTFOLIO CD WILL APPEAL TO PROFESSIONALS TRYING TO STREAMLINE AND UPDATE PRESENTATION AND MARKETING METHODS DURING THE HOLIDAY SEASON SOME DEPARTMENT STORES USED PORTFOLIO CD FOR GIFT GUIDE INFORMATION DISPLAYS SIR SPEEDY WILL OFFER PHOTO CD AUTHORING SERVICES IN NEARLY 40 OF ITS 885 STORES THE SIR SPEEDY ALLIANCE IS KODAK'S BIGGEST THUS FAR WITH A PRINTING COMPANY ALTHOUGH SIR SPEEDY EXPECTS TO HANDLE MUCH OF THE CREATIVE WORK IT WILL ALSO SELL KODAK SOFTWARE TO CUSTOMERS WHO WANT TO DESIGN THEIR OWN CDS THUS CREATING ANOTHER SALES OUTLET FOR KODAK PRODUCTS WHILE MANY PHOTOFINISHERS USING THE PHOTO CD TECHNOLOGY WILL OFFER IDENTICAL SERVICES THE GOOD NEWS FOR THEM IS THAT SIR SPEEDY AND MOST OTHER PRINTERS WILL SEEK PHOTOFINISHING PARTNERS TO HELP PROCESS FILM ORDERS ADDITIONALLY SIR SPEEDY WILL INITIALLY SHIP ALL FINAL PORTFOLIO CD ORDERS TO ITS CALIFORNIA HEADQUARTERS FOR CD PRODUCTION A NICHE SOME REGIONAL PHOTOFINISHERS HOPE THEY MIGHT FILL CERTAINLY IT IS A COMPETITION SITUATION BUT IT IS ALSO AN OPPORTUNITY SAID BILL SMITH OWNER OF BOSTON PHOTO LAB AND PRESIDENT OF A PHOTO CD USERS GROUP WHY SHOULD SIR SPEEDY SEND THEIR WORK OFF TO CALIFORNIA IF I CAN DO IT HERE SIR SPEEDY EXPECTS ITS PHOTO CD SERVICES INCLUDING PORTFOLIO CD TO BE AVAILABLE IMMEDIATELY MOST PHOTOFINISHERS EXPECT PORTFOLIO SERVICE BY THE END OF JANUARY 9401050132 940105 INTERNATIONAL ABB ASEA BROWN WINS CONTRACT ZURICH ABB ASEA BROWN BOVERI LTD SAID IT RECEIVED A CONTRACT TO SUPPLY SPARE GASTURBINE PARTS ABB IS AN ELECTRICALENGINEERING GROUP OWNED JOINTLY BY ASEA AB OF SWEDEN AND BBC BROWN BOVERI AG OF SWITZERLAND THE PARTS IN THE CONTRACT ARE FOR THE MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP OF MIDLAND MICH ABB VALUED THE CONTRACT AT MORE THAN 150 MILLION AND THE CONTRACT WAS BOOKED IN ITS 1993 ORDER INTAKE ABB WILL PROVIDE SPARE TURBINE PARTS OVER THE NEXT NINE YEARS FOR THE 12 EXISTING GAS TURBINES AT MCV'S 1370MEGAWATT GASFIRED COGENERATION PLANT AT MIDLAND 9401050131 940105 RADIATION SYSTEMS CONTRACT STERLING VA RADIATION SYSTEMS INC SAID ITS PRIME CONTRACTOR GULF DEEP FOUNDATION INTERNATIONAL CONTRACTING CO WAS CHOSEN BY THE KUWAITI MINISTRY OF COMMUNICATIONS TO BUILD A SATELLITE COMMUNICATIONS COMPLEX NEAR KUWAIT CITY RADIATION SYSTEMS SAID ITS SUBCONTRACT WITH THE CONTRACTOR IS EXPECTED TO EXCEED 18 MILLION SUBJECT TO NEGOTIATIONS GULF'S PACT IS VALUED AT ABOUT 32 MILLION RADIATION SYSTEMS SAID THE SYSTEM TO BE SUPPLIED BY RADIATION SYSTEMS WILL ENABLE KUWAIT TO EXPAND ITS LONGDISTANCE CAPACITY TO 58 COUNTRIES FROM 28 COUNTRIES AND IS EXPECTED TO BE COMPLETED IN LATE 1995 9401050130 940105 GILEAD BEGINS CMV DRUG TRIALS FOSTER CITY CALIF GILEAD SCIENCES INC SAID IT BEGAN COMBINED PHASE II/PHASE III TRIALS FOR ITS GS 504 DRUG DESIGNED TO DELAY THE PROGRESS OF PERIPHERAL RETINITIS DUE TO CYTOMEGALOVIRUS ALSO CALLED CMV A DISEASE THAT CAN LEAD TO LOSS OF SIGHT IN AIDS PATIENTS 9401050129 940105 FOREST OIL BUYS PROPERTIES DENVER FOREST OIL CORP SAID IT COMPLETED THE PURCHASE OF AN INTEREST IN A TEXAS NATURAL GAS FIELD IN ZAPATA AND JIM HOGG COUNTIES FOR 60 MILLION FOREST AN EXPLORATION AND PRODUCTION COMPANY DECLINED TO IDENTIFY THE SELLER 9401050128 940105 BUSINESS BRIEF BOSTON CHICKEN INC TO ACQUIRE 84 OUTLETS OF ROY ROGERS CHAIN NAPERVILLE ILL BOSTON CHICKEN INC INDICATING A FASTTRACK GROWTH PLAN FOR ITS FLEDGLING CHAIN AGREED TO ACQUIRE 84 ROY ROGERS RESTAURANTS FROM HARDEE'S FOOD SYSTEMS INC FOR 223 MILLION ALL THE RESTAURANTS ARE IN PHILADELPHIA WHICH HAS BEEN A DISAPPOINTING MARKET FOR HARDEE'S BUT ONE WHICH BOSTON CHICKEN INTENDS TO TURN INTO A PROTOTYPE FOR FURTHER EXPANSION IF COMPLETED THE ACQUISITION WOULD MAKE THE GREATER PHILADELPHIA MARKET WHICH INCLUDES PARTS OF DELAWARE AND NEW JERSEY BOSTON CHICKEN'S LARGEST WITH PERHAPS 100 STORES EVENTUALLY IT NOW HAS ABOUT A DOZEN RESTAURANTS IN THE AREA HARDEE'S A UNIT OF IMASCO LTD IN MONTREAL SAID THE SALE WOULD RESULT IN A ONETIME CHARGE OF 11 MILLION AGAINST ITS 1993 FOURTHQUARTER EARNINGS HARDEE PRESIDENT ROBERT AUTRY SAID THE FINANCIAL RETURNS FROM THE PHILADELPHIA MARKET HAVE HISTORICALLY BEEN WEAK RELATIVE TO OTHER ROY ROGERS MARKETS THIS SALE WILL ENABLE US TO FOCUS ON BALTIMORE WASHINGTON AND NEW YORK WHERE THE ROY ROGERS TRADEMARK IS STRONGER BOSTON CHICKEN OPERATES 218 STORES SERVING ROTISSERIE CHICKEN MOST ARE IN FLORIDA AND THE NEW YORKCONNECTICUT MARKETS OUR BLUEPRINT IS TO HAVE 25 MARKETS ACROSS THE COUNTRY THAT LOOK JUST LIKE PHILLY IN TERMS OF STORE CONCENTRATION SAID MARK W STEPHENS BOSTON CHICKEN'S CHIEF FINANCIAL OFFICER PLANS CALL FOR BOSTON CHICKEN TO CONVERT BETWEEN 50 AND 54 OF THE ROY ROGERS OUTLETS TO ITS FORMAT BY THE END OF 1995 AT A COST OF ABOUT 500000 A UNIT MR STEPHENS SAID AS CONVERSIONS OCCUR THE COMPANY WILL DECIDE THE FATE OF THE REMAINING UNITS WE NEED TO GET A FEEL FOR HOW THE STORE BASE WILL BEHAVE BEFORE WE MAKE A DECISION ON THE REST MR STEPHENS SAID THE COMPANY WOULD FINANCE THE ACQUISITION WITH FUNDS FROM ITS RECENT EXTRAORDINARILY SUCCESSFUL INITIAL PUBLIC OFFERING AND RENEGOTIATED BANK FACILITY BOSTON CHICKEN REPLACED ITS PREVIOUS FACILITY WITH A 50 MILLION UNSECURED LINE WITH A SYNDICATE OF BANKS HEADED BY CONTINENTAL ILLINOIS OF CHICAGO 9401050127 940105 A MACY MERGER WOULD OFFER FEDERATED PRIME ASSETS GEOGRAPHICAL ADVANTAGE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN STATING ITS DESIRE TO MERGE WITH RH MACY & CO FEDERATED DEPARTMENT STORES INC IS SEEKING A VENERABLE RETAILER THAT IS HOBBLED BY DEBT BUT STILL HAS PRIME ASSETS ALTHOUGH MACY IS OPERATING UNDER BANKRUPTCYCOURT PROTECTION THE NEW YORK RETAILER OFFERS FEDERATED SOME TANTALIZING CROWN JEWELS AS WELL AS A GEOGRAPHIC SPREAD THAT WOULD MESH WELL WITH FEDERATED'S OWN NETWORK OF STORES MACY'S FLAGSHIP HERALD SQUARE STORE IN NEW YORK STILL THE WORLD'S LARGEST RETAIL STORE HAS REBOUNDED AS THE EAST COAST HAS SLOWLY PULLED OUT OF RECESSION ITS LOS ANGELESBASED BULLOCK'S CHAIN HAS REMAINED PROFITABLE DESPITE A NAGGING SOUTHERN CALIFORNIA RECESSION BULLOCK'S IS ESPECIALLY ATTRACTIVE TO FEDERATED BECAUSE IT WOULD GIVE THE CINCINNATIBASED RETAILER THE CALIFORNIA STORES THAT IT NOW LACKS IN ADDITION MACY'S FOUR FLORIDA STORES AND A FIFTH ONE PLANNED FOR THE FALLS A HIGHEND MIAMI MALL WOULD AUGMENT FEDERATED'S BURDINES CHAIN IN THAT FASTGROWING STATE THEY STILL HAVE A GREAT FRANCHISE AND PROBABLY THE BEST RECOGNIZED NAME IN THE WORLD IN DEPARTMENTSTORE RETAILING SAID PETER N SCHAEFFER PARTNER WITH JOHNSON REDBOOK SERVICES A RETAIL ANALYSIS FIRM MACY'S WEAKNESSES ARE JUST AS APPARENT ITS SAN FRANCISCOBASED I MAGNIN CHAIN THOUGH GLAMOROUS IS UNPROFITABLE ACCORDING TO INDUSTRY EXECUTIVES MACY HAS CLOSED 18 I MAGNIN STORES SINCE IT ACQUIRED THE CHAIN ALONG WITH BULLOCK'S FROM FEDERATED IN 1988 AND WHILE MACY HAS STREAMLINED OPERATIONS ITS STORES ARE NOT REGISTERING WHAT ANALYSTS BELIEVE ARE THE NECESSARY SAMESTORE SALES GAINS TO RETURN TO CONSISTENT PROFITABILITY AND EXPEDITE ITS EMERGENCE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS BUT UNDER MYRON E ULLMAN III MACY'S LOWKEY BUT WIDELY RESPECTED CHAIRMAN MACY IS RETURNING TO ITS MORE MAINSTREAM ROOTS AFTER AN ILLFATED FLIRTATION WITH GLITZ UNDER ITS FORMER CHAIRMAN EDWARD S FINKELSTEIN DURING THE 1980S INSTEAD OF EMPHASIZING COUTURE DESIGNERS MACY UNDER MR ULLMAN HAS CONCENTRATED ON MODERATEPRICED WOMEN'S APPAREL EXPANDED ITS HOMEGOODS DEPARTMENT AND BROUGHT BACK CROWD PLEASERS SUCH AS LEVI'S BLUE JEANS PROLETARIAN GARB THAT MR FINKELSTEIN BANNED DURING THE GOGO 1980S WHAT ULLMAN IS SAYING IS LET'S PUT MACY BACK TO WHAT IT USED TO BE SAYS BUD KONHEIM CHAIRMAN OF APPAREL MAKER NICOLE MILLER LTD MR ULLMAN HAS COOLLY REBUFFED FEDERATED'S ADVANCE WHICH INVOLVED ITS 4493 MILLION PURCHASE OF HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S CLAIM IN MACY'S CHAPTER 11 BANKRUPTCYCOURT REORGANIZATION MR ULLMAN HAS SAID THAT MACY WILL CONTINUE WITH ITS OWN PLANS TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS AND DEAL WITH ITS MORE THAN 6 BILLION IN CLAIMS FOR NOW MACY'S MANAGEMENT HAS EXCLUSIVE RIGHTS TO PREPARE A REORGANIZATION PLAN THAT PERIOD ENDS MARCH 15 AND MACY WHICH HAS OPERATED UNDER CHAPTER 11 PROTECTION SINCE JAN 27 1992 IS EXPECTED TO REQUEST AN EXTENSION INDUSTRY OBSERVERS DON'T ANTICIPATE MACY'S EMERGENCE FROM BANKRUPTCY PROTECTION BEFORE 1995 THE JURY IS STILL OUT ON MACY SAYS DAVID L FINKELSTEIN SENIOR EXECUTIVE VICE PRESIDENT OF CENTURY BUSINESS CREDIT CORP A FACTORING COMPANY HE SAYS HE HAS APPROVED ALL ORDERS FOR THE RETAILER BUT WARNS THEY STILL HAVE TO COME UP WITH A PLAN SO FAR MR ULLMAN HAS BEEN TAKING A METHODICAL APPROACH TO FIXING MACY'S PROBLEMS FOLLOWING A FIVEYEAR BUSINESS PLAN HE UNVEILED IN LATE 1992 HIS PREDECESSOR FOR INSTANCE HAD ALL BUT IGNORED THE NEED FOR UPTODATE INVENTORY AND SALES DATA COMPUTER SYSTEMS BUT MACY IS NOW SPENDING 90 MILLION ON COMPUTERIZED CASH REGISTERS HALF OF WHICH HAVE BEEN INSTALLED NATIONWIDE THE HIGHTECH REGISTERS CAN FEED SALES INFORMATION DIRECTLY TO INVENTORY CONTROL CONDUCT TRANSACTIONS MORE QUICKLY ISSUE GIFT CERTIFICATES AND TAKE MERCHANDISE RETURNS IN THE PAST MACY ALSO RELIED HEAVILY ON PRIVATELABEL GOODS OFTEN LEAVING STORES WITH STACKS OF MERCHANDISE THAT DIDN'T SELL WELL MACY CONTINUES TO STOCK A WIDE ASSORTMENT OF NATIONAL BRANDS WHILE SCALING BACK THE NUMBER OF PRIVATELABEL LINES TO 20 FROM 60 FASTSELLING PRIVATELABEL COOKWARE WAS KEPT BUT MACY THREW OUT ITS PRIVATELABEL LINE OF YOUNG WOMEN'S APPAREL THE MOVE HAS ALLOWED MACY TO REDUCE DESIGN STAFF AND REACT MORE QUICKLY TO FASHION TRENDS TO BUILD STORE PROFITS MR ULLMAN HAS PICKED APART CERTAIN MERCHANDISE LINES AND DECIDED TO CARRY ONLY WHAT SELLS BEST IN A GIVEN LOCATION IN CALIFORNIA FOR EXAMPLE MACY STOPPED SELLING VIDEOCASSETTE RECORDERS STEREO SYSTEMS AND TELEVISION SETS BECAUSE IT FACES STIFF COMPETITION THERE FROM ELECTRONICS SUPERSTORES INSTEAD THE STORES EMPHASIZE THE MOREPROFITABLE LINES OF MOBILE AND PERSONAL ELECTRONICS SUCH AS SMALL PERSONAL COMPUTERS AND CELLULAR PHONES THE 47YEAROLD MR ULLMAN A FORMER COLLEGE ADMINISTRATOR AND INTERNATIONAL BUSINESS MACHINES CORP COMPUTER SALESMAN ARRIVED AT MACY IN 1988 FROM HONG KONGBASED WHARF HOLDINGS CORP A TRANSPORTATION AND REAL ESTATE CONGLOMERATE EARLIER HE SPENT FOUR YEARS AS A RISING STAR AT A FEDERATED DIVISION A DETAILMINDED OPERATIONS SPECIALIST HE HAS WORKED IN RECENT MONTHS TO RETURN MUCHNEEDED MERCHANDISING PIZAZZ TO THE MACY RETAIL EMPIRE TO THAT END HE RECENTLY HIRED AWAY FEDERATED'S TOP MERCHANDISING EXECUTIVE ROGER FARAH TO BE MACY'S TOP MERCHANT IN A NASTY LEGAL TUSSLE THAT SOURED RELATIONS BETWEEN MR ULLMAN AND ALLEN I QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE MR FARAH'S CONTRACT WITH FEDERATED RESTRICTS HIM FROM STARTING WORK AT MACY UNTIL JULY WHILE MR QUESTROM FUNCTIONS AS FEDERATED'S TOP MERCHANT MACY BADLY NEEDS SOMEONE WITH MR FARAH'S EXPERTISE AND EXPERIENCE WORKING WITH SUPPLIERS MR FARAH 41 WILL GUIDE MACY'S STRATEGIES FOR ACQUIRING PRICING AND DISPLAYING GOODS THE CHIEF MERCHANT JOB HAS BEEN VACANT SINCE THE RESIGNATION LAST MAY OF MARK HANDLER WHO WAS COCHAIRMAN AND COCHIEF EXECUTIVE 9401050123 940105 A STUDENT OF VALUE' MEANS A STUDENT WHO CAN PAY THE RISING COST OF COLLEGE BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN THE FIRST FEW COLLEGES STARTED CALLING DAVID ALPERN WAS FLATTERED THIS IS GREAT PEOPLE WANT ME TO COME THOUGHT THE 17YEAROLD HIGH SCHOOL SENIOR WHO IS IN THE BOTTOM HALF OF HIS CLASS AT FLINTRIDGE PREPARATORY SCHOOL IN THE AFFLUENT LOS ANGELES SUBURB OF LA CANADA THE THRILL WAS SHORTLIVED ONCE MR ALPERN HEARD THAT HIS CLASSMATES WERE GETTING THE SAME TREATMENT FROM TUITIONHUNGRY SCHOOLS THE MEANING KIND OF LESSENED HE SAYS COLLEGES ARE TRYING TO GET AS MANY PEOPLE AS THEY CAN ALL THEY CARE ABOUT ARE THE NUMBERS DEMOGRAPHICALLY SPEAKING MR ALPERN IS RIGHT BETWEEN 1988 AND 1991 FIRSTTIME FRESHMAN ENROLLMENT IN BOTH PUBLIC AND PRIVATE FOURYEAR COLLEGES AND UNIVERSITIES DROPPED TO 11 MILLION FROM 12 MILLION A DECREASE OF 8 THE SITUATION HAS BEEN EVEN WORSE AT PRIVATE SCHOOLS WHICH HAVE SUFFERED THE TWIN BLOWS OF RECESSION AND A 15YEAR DROP IN THE NUMBER OF 17 AND 18YEAROLDS A TREND THAT IS JUST BEGINNING TO REVERSE THE DISMAL STATISTICS HAVE MADE MANY COLLEGES PARTICULARLY SMALL SECONDTIER PRIVATE INSTITUTIONS INCREASINGLY AGGRESSIVE ABOUT SEEKING STUDENTS WHO CAN PAY FULL OR CLOSE TO FULL TUITION IVY LEAGUE AND OTHER TOP SCHOOLS STILL HAVE SO MANY APPLICANTS AND SUCH HEALTHY ENDOWMENTS THAT THEY DO FAR LESS SUCH RECRUITING FOR THE LESS WEALTHY AND PRESTIGIOUS SCHOOLS HOWEVER TACTICS RANGE FROM REPEATED PHONE CALLS AND LETTERS TO OFFERS OF DISCOUNTED TUITION AND SOMETIMES EVEN INCLUDE RAIDS ON RIVAL INSTITUTIONS' STUDENT ROSTERS THE EXPRESSION A STUDENT OF VALUE' USED TO MEAN A VALEDICTORIAN STUDENTBODY PRESIDENT OR VARSITY ATHLETE SAYS ROSS LENHAM HEAD OF THE EDUCATIONAL DIVISION OF ATLANTABASED PHOENIX COMMUNICATIONS INC WHICH DESIGNS SCHOOL BROCHURES NOW THE PHRASE MORE AND MORE MEANS A STUDENT WHO CAN PAY AND THEY ARE PAYING MORE FEDERAL STATISTICS SHOW THAT CHARGES AT PRIVATE COLLEGES ROSE BY 127 BETWEEN THE 198182 AND 199192 SCHOOL YEARS FAR SURPASSING A 47 RISE IN THE CONSUMER PRICE INDEX DURING THE SAME PERIOD TO FIND HIGHSCHOOL SENIORS WHO CAN PAY THE BILLS FOR COLLEGE A GROWING NUMBER OF SCHOOLS ARE RELYING ON SOCALLED GEODEMOGRAPHICSINFORMATION CULLED FROM CENSUS DATA MAILING LISTS AND EVEN PRODUCT WARRANTIES THAT IS USED TO TARGET STUDENTS LIVING IN WELLOFF NEIGHBORHOODS SUCH STUDENTS MR ALPERN IS ONE GET BOMBARDED WITH SCHOOL LITERATURE AND PERSONAL TELEPHONE CALLS MORE SCHOOLS ALSO GIVE OUT PARTIAL SCHOLARSHIPS INDEPENDENT OF FINANCIAL NEED ESSENTIALLY DISCOUNTING TUITION IN HOPES OF ATTRACTING STUDENTS WHO CAN PAY THE BALANCE DEPAUW UNIVERSITY IN GREENCASTLE IND BREAKS OUT THREE TOP SOCIOECONOMIC CATEGORIES THAT THE SCHOOL'S MARKETERS USE TO PROFILE POTENTIAL STUDENTS ONE IS THE YOUNG SUBURBIA BRACKET THE OTHER TWO SAYS DAVID MURRAY DEPAUW'S DIRECTOR OF ADMISSIONS ARE BLUEBLOOD ESTATES AND FURSANDSTATION WAGONS MR MURRAY SAYS DEPAUW DOESN'T USE GEODEMOGRAPHICS SPECIFICALLY TO TARGET THE WEALTHY BUT HE ALLOWS IF YOU HAVE ENOUGH FULLPAYING STUDENTS IT WILL IN EFFECT ALLOW YOU TO FUND OTHER STUDENTS OTHER SCHOOLS ARE BLUNTER IT IS IMPERATIVE FOR US TO ATTRACT MORE STUDENTS WHO CAN PAY A GREATER PERCENTAGE OF THE COST SAYS DENNIS DEPERRO DEAN OF ADMISSIONS AT MARIETTA COLLEGE IN MARIETTA OHIO WHICH RECRUITS HEAVILY IN WEALTHY AREAS ABOUT 70 OF MARIETTA'S STUDENTS NEED FINANCIAL AID WHILE THE 1200STUDENT COLLEGE DOESN'T USE GEODEMOGRAPHICS MR DEPERRO SAYS MARIETTA MIGHT CONSIDER IT MEANTIME MR DEPERRO SAYS MARIETTA HAS BEGUN OFFERING PARTIAL MERIT SCHOLARSHIPS NOT LINKED TO FINANCIAL NEED WITH THE HOPE WE'LL ATTRACT STUDENTS WHO ARE QUALIFIED BUT DON'T NEED AID BUT THE NATIONAL ASSOCIATION OF COLLEGE ADMISSION COUNSELORS IS CONCERNED ABOUT THE RISE OF MERIT SCHOLARSHIPS SAYS MARY LEE HOGANSON THE GROUP'S VICE PRESIDENT OF ADMISSIONS PRACTICES BECAUSE THEY DRAIN OFF FUNDS AVAILABLE FOR NEEDBASED AID COMPANIES HAVE PROSPERED BY HELPING SCHOOLS TARGET AFFLUENT STUDENTS IMAGE PRESENTATIONS A BOSTON MARKETINGCONSULTING FIRM HAS SEEN DEMAND FOR ITS COLLEGIATE GEODEMOGRAPHIC SERVICES DOUBLE ANNUALLY SINCE THE COMPANY BEGAN OFFERING THEM IN 1990 THERE'S NO QUESTION THAT STUDENTS WHO CAN PAY THEIR OWN WAY ARE IN DEMAND SAYS JONATHAN SPRING A FOUNDING PARTNER OF IMAGE IMAGE SELLS INFORMATION DRAWN FROM CENSUS DATA AND MAILING LISTS INCLUDING NAMES OF BUYERS OF BIGTICKET ITEMS SUCH AS CARS AND MAJOR APPLIANCES MR SPRING WON'T REVEAL IMAGE'S CLIENTS BUT SAYS THEY INCLUDE WELLKNOWN PRIVATE UNIVERSITIES OTHER COMPANIES SELLING GEODEMOGRAPHICS TO COLLEGES INCLUDE POSTSCRIPT INC IN BURLINGTON VT AND COLLEGE MARKETING TECHNOLOGIES INC IN CRYSTAL LAKE ILL IN THE PAST 18 MONTHS COLLEGE MARKETING HAS ANALYZED POTENTIAL STUDENTS' PAYING ABILITY FOR ABOUT 50 COLLEGES EVERYONE WANTS TO KNOW WHICH STUDENTS CAN PAY SAYS TIM DODGE THE FIRM'S SENIOR VICE PRESIDENT SOME MARKETING CONSULTANTS VIEW GEODEMOGRAPHICS AS A SIMPLISTIC STRATEGY AT BEST ANY INSTITUTION THAT THINKS FINDING MORE FULLPAYING STUDENTS IS A PANACEA TO ITS FINANCIAL PRESSURES IS KIDDING ITSELF SAYS RICHARD HESEL EXECUTIVE VICE PRESIDENT OF BARTON GILLET CO A BALTIMORE MARKETINGCOMMUNICATIONS FIRM NEVERTHELESS ONE POSTSCRIPT CLIENT NORWICH UNIVERSITY IN NORTHFIELD VT SAYS TARGETED MAILING HAS HELPED BRING IN MORE WELLOFF STUDENTS THE MORE FULLPAY STUDENTS WE GET THE MORE AID WE CAN OFFER SAYS FRANK GRIFFITHS NORWICH'S DIRECTOR OF ADMISSIONS VOICING A COMMON COLLEGE JUSTIFICATION FOR TARGETING THE WEALTHY BUT STUDENTS DON'T ALWAYS RESPOND WELL TO THE BARRAGE OF MAIL AND PHONE CALLS LINDA CONTI FLINTRIDGE PREP'S GUIDANCE COUNSELOR SAYS HER STUDENTS FEEL PURSUED BUT AT THE SAME TIME A LITTLE HARASSED BY INCREASINGLY PERSISTENT COLLEGE SOLICITING AMONG MS CONTI'S STUDENTS IS JILL SUMNER A CLASSMATE OF MR ALPERN'S WHO LIVES IN NEARBY PASADENA CALIF AND SAYS SHE DOESN'T NEED FINANCIAL AID MS SUMNER 17 SAYS SHE GOT TWO PHONE CALLS AND A CHRISTMAS CARD FROM CALIFORNIA LUTHERAN UNIVERSITY DESPITE HER B AVERAGE AND MIDDLING SCHOLASTIC APTITUDE TEST SCORES SHE DOESN'T PLAN TO APPLY TO THE SCHOOL ERNIE SANDLIN DIRECTOR OF ADMISSIONS AT CAL LUTHERAN IN THOUSAND OAKS CALIF SAYS THE UNIVERSITY CONTINUES TO CALL STUDENTS IT CONSIDERS SOMEWHAT INTERESTED RIGHT UP TO ITS MARCH 1 APPLICATION DEADLINE HOME VISITS ARE ON THE RISE AS WELL JOHN KOESEL DIRECTOR OF GUIDANCE AT UPPER ST CLAIR HIGH SCHOOL IN A WELLOFF PITTSBURGH SUBURB SAYS SOME LOCAL PRIVATE COLLEGES ARE DOING A LOT OF RECRUITING IN EVENING HOURS WITH STUDENTS' PARENTS ALMOST LIKE THE FOOTBALL COACH AND THE ATHLETIC COACH GOING TO THE HOUSE BUT MR KOESEL ADDS THAT WHILE HIS STUDENTS INITIALLY FEEL FLATTERED THE RELENTLESS FOLLOWUPS END UP WITH A TOTAL TURNOFF AMONG THE MORE UNSAVORY RECRUITING TACTICS REPORTED TO BE IN USE THESE DAYS ARE PIRATING AND HEADHUNTING MS HOGANSON OF THE ADMISSION COUNSELORS' ASSOCIATION SAYS SHE KNOWS OF SEVERAL CASES IN WHICH COLLEGES HAVE OFFERED SCHOLARSHIPS TO FRESHMEN ALREADY ENROLLED IN OTHER SCHOOLS MS HOGANSON AND OTHER NACAC MEMBERS ALSO SAY THEY HAVE SEEN LETTERS OFFERING THEIR ALREADYENROLLED STUDENTS 50 DISCOUNTS ON BOOKS OR TUITION IN EXCHANGE FOR NAMES OF LIKELY APPLICANTS FROM THEIR FORMER HIGH SCHOOLS IT LOOKS LIKE PEOPLE ARE OUT THERE BUYING STUDENTS SHE SAYS MS HOGANSON WHO WON'T DISCLOSE THE NAMES OF THE SCHOOLS SAYS SEVERAL HAVE BEEN REPRIMANDED FOR PRACTICES SUCH AS PIRATING WHICH VIOLATE THE NACAC'S STATEMENT OF PRINCIPLES OF GOOD PRACTICES SHE SAYS THOSE CALLED ON THE CARPET TEND TO BE TINY SCHOOLS THAT ARE STRUGGLING FOR SURVIVAL WHILE TARGETED MARKETING OF WEALTHY STUDENTS IS CLEARLY ON THE RISE MS HOGANSON SAYS IT ISN'T IN THE SPIRIT OF WHAT WE DO 9401050122 940105 WHO'S NEWS BROOKINGS' PERRY IS SAID TO ENTER CONTEST FOR FED SEAT BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONTEST FOR A SEAT ON THE FEDERAL RESERVE BOARD IS A THREEMAN RACE AGAIN GEORGE PERRY A SENIOR BROOKINGS INSTITUTION FELLOW WHO INITIALLY SHUNNED ADMINISTRATION OVERTURES IS NOW A CONTENDER AND HAS BEEN INTERVIEWED RECENTLY BY PRESIDENT CLINTON'S ECONOMIC ADVISERS ADMINISTRATION OFFICIALS SAID AS REPORTED THE OTHER LEADING CANDIDATES FOR THE NOMINATION ARE PRINCETON UNIVERSITY ECONOMIST PETER KENEN AND VAN DOORN OOMS CHIEF ECONOMIST FOR THE COMMITTEE ON ECONOMIC DEVELOPMENT A BUSINESSBACKED RESEARCH GROUP IN WASHINGTON MR CLINTON'S ECONOMIC ADVISERS HAVE YET TO AGREE ON WHICH OF THE THREE ECONOMISTS TO RECOMMEND THE PRESIDENT MIGHT NOT MAKE A DECISION BEFORE HE LEAVES FOR EUROPE AT WEEK'S END MR PERRY 59 YEARS OLD WOULDN'T COMMENT YESTERDAY HE HAS BEEN AT BROOKINGS A WASHINGTON THINK TANK SINCE 1969 AND IS THE DIRECTOR OF ITS PANEL ON ECONOMIC ACTIVITY WHICH PUBLISHES A SEMIANNUAL VOLUME OF PAPERS ON MACROECONOMIC POLICY ISSUES AFTER EARNING HIS DOCTORATE AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY MR PERRY SERVED ON THE STAFF OF PRESIDENT KENNEDY'S COUNCIL OF ECONOMIC ADVISERS AND LATER TAUGHT AT THE UNIVERSITY OF MINNESOTA ALL THREE OF THE CANDIDATES ARE MILDMANNERED WELLCREDENTIALED AND WELLKNOWN ECONOMISTS OF A DEMOCRATIC BENT ADMINISTRATION OFFICIALS HAVE CAUTIONED THAT THERE IS STILL A CHANCE THAT THE WHITE HOUSE WILL WIDEN THE SEARCH IN THE HOPES OF FINDING A WOMAN OR MINORITYGROUP MEMBER FOR THE POST ALICE RIVLIN DEPUTY DIRECTOR OF THE WHITE HOUSE BUDGET OFFICE DECIDED NOT TO BE CONSIDERED FOR THE FED SEAT THE OPENING ON THE SEVENMEMBER FEDERAL RESERVE BOARD OCCURS AT THE END OF THIS MONTH WHEN REAGAN APPOINTEE WAYNE ANGELL'S TERM EXPIRES MR CLINTON ISN'T GUARANTEED ANOTHER CHANCE TO PICK A FED GOVERNOR UNTIL VICE CHAIRMAN DAVID MULLINS'S TERM EXPIRES IN JANUARY 1996 THE PRESIDENT'S NOMINATION IS SUBJECT TO CONFIRMATION BY THE SENATE 9401050120 940105 CORRECTIONS & AMPLIFICATIONS MUTUAL FUNDS LISTINGS THAT APPEARED IN THE YEAREND REVIEW OF MARKETS AND FINANCE SECTION IN MONDAY'S PAPER WERE INCOMPLETE A REVISED TABLE APPEARS IN TODAY'S EDITION TIME WARNER INC AND SPIEGEL INC ARE JOINTLY DEVELOPING AN INTERACTIVE TELEVISION SHOPPING NETWORK A PAGEONE ARTICLE YESTERDAY ON DEPARTMENT STORES INCORRECTLY IDENTIFIED PARAMOUNT COMMUNICATIONS AS SPIEGEL'S PARTNER 9401050119 940105 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9401050118 940105 ADVERTISING CDC ADVOCATES USE OF CONDOMS IN BLUNT AIDSPREVENTION SPOTS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL THE US DEPARTMENT OF HEALTH UNVEILED A SERIES OF NEW AND UNUSUALLY EXPLICIT TELEVISION AND RADIO ADVERTISEMENTS URGING SEXUALLY ACTIVE YOUNG PEOPLE TO USE LATEX CONDOMS THE ADS REPRESENT A SHIFT FROM REPUBLICANERA POLICIES THAT STRESSED ABSTINENCE FOR AIDS PREVENTION THE SPOTS PART OF THE CENTERS FOR DISEASE CONTROL AND PREVENTION'S NEW HIV PREVENTION CAMPAIGN ALSO WILL INCLUDE MESSAGES ENCOURAGING YOUTHS TO REFRAIN FROM SEXUAL ACTIVITY NEVERTHELESS THE COMMERCIALS ARE PROMPTING AN OUTCRY FROM CONSERVATIVE GROUPS WHILE THIS ISN'T THE FIRST TIME THE CDC HAS PROMOTED THE USE OF CONDOMS AS A WAY OF REDUCING THE RISK OF CONTRACTING AIDS THE CAMPAIGN FURTHERS THE LEVEL OF PLAINSPEAK THAT MANY AIDSPREVENTION ADVOCATES HAVE WANTED CERTAINLY THERE HAS NOT BEEN THIS LEVEL OF PREVENTION MARKETING IN THE PAST SAID DR DAVID SATCHER DIRECTOR OF THE CDC BUT WE'VE GOT TO REALIZE WHAT WE'RE DEALING WITH HERE WHAT ARE WE GOING TO TELL OUR KIDS WHEN THEY ASK US WHY WE ALLOWED THIS DISEASE TO SPREAD CONSERVATIVE AND RELIGIOUS GROUPS WERE FUMING THESE ADS BORDER ON LIGHT PORNOGRAPHY SAID THE REV LOU SHELDON CHAIRMAN OF TRADITIONAL VALUES COALITION A CONSERVATIVE LOBBYING GROUP IN WASHINGTON DC MARK MY WORD THEY WILL DO NOTHING BUT INCITE SEXUAL AROUSAL FOR THE YOUNG ADULT ONE OF THE RADIO ADS WHICH FEATURES ANTHONY KIEDIS OF THE ROCK GROUP RED HOT CHILI PEPPERS WAS PARTICULARLY PILLORIED BY CONSERVATIVES IN THE SPOT MR KIEDIS LOUDLY OPENS A CONDOM AND SAYS I'VE BEEN NAKED ON STAGE I'M NAKED WHENEVER I HAVE SEX BUT NOW I'M ON THE RADIO SO I MIGHT AS WELL GET NAKED AGAIN THERE I'M NAKED SEE AND WHAT I HAVE HERE IS A CONDOM I WEAR ONE WHENEVER I HAVE SEX LOOK THEY'RE VERY EASY TO OPEN A BREEZE TO PUT ON HE USES LASCIVIOUS TONES COMPLAINS ROBERT KNIGHT A SPOKESMAN WITH FAMILY RESEARCH COUNCIL A CONSERVATIVE GROUP IN WASHINGTON THEY'RE VERY OFFENSIVE I THOUGHT I WAS WATCHING NYPD BLUE' A CONTROVERSIAL TELEVISION DRAMA ONE TELEVISION AD OFFERED IN BOTH ENGLISH AND SPANISH FEATURES A COUPLE KISSING AND CARESSING DID YOU BRING IT THE WOMAN ASKS UHOH I FORGOT IT THE MAN REPLIES THEN FORGET IT THE WOMAN SAYS ANOTHER FEATURES A COUPLE MAKING LOVE WHEN A CONDOM SCURRIES UP THE SIDE OF THE BED THE VOICEOVER SAYS IT WOULD BE NICE IF LATEX CONDOMS WERE AUTOMATIC BUT SINCE THEY'RE NOT USING THEM SHOULD BE CONSERVATIVES SAID THE CLINTON ADMINISTRATION WOULD DO WELL TO FOLLOW THE BUSH AND REAGAN ADMINISTRATIONS WHICH STRESSED ABSTINENCE IN PREVENTING THE SPREAD OF AIDS AMONG YOUNG PEOPLE BUT FEDERAL HEALTH OFFICIALS SAID THEY HAVE TO BE REALISTIC OF THE 12 MILLION NEW CASES OF SEXUALLY TRANSMITTED DISEASES EACH YEAR TWOTHIRDS OCCUR IN PEOPLE UNDER 25 YEARS OLD SAID DR SATCHER OF THE CDC THE ADS WHICH STARTED LAST NIGHT WILL RUN AS PUBLICSERVICE ANNOUNCEMENTS DURING PRIME TIME AND OTHER TIMES THE FOUR NETWORKS AS WELL AS MOST OTHER BROADCASTERS AIR OTHER PUBLICSERVICE ADS ABOUT CONDOMS AND SAFE SEX GENERAL ELECTRIC CO'S NBC AND CAPITAL CITIES/ABC SAID THEY PLAN TO BROADCAST ALL THE COMMERCIALS IN THE CDC LINEUP CBS INC SAID THE NETWORK PLANS ON AIRING CERTAIN PUBLICSERVICE ADVERTISEMENTS FROM THE CDC'S NEW HIVPREVENTION CAMPAIGN A SPOKESMAN DECLINED TO ELABORATE NEWS CORP'S FOX BROADCASTING SAID IT WILL BROADCAST ALL THE ADS A SPOKESWOMAN SAID THAT SINCE THE SPOTS ARE FAIRLY SOPHISTICATED THEY PROBABLY WILL BE BROADCAST LATER IN THE EVENING ALTHOUGH DURING PRIME TIME DOOR CLOSES MAN AND WOMAN KISSING GIGGLING WOMAN DID YOU BRING IT MAN UHOH I FORGOT IT WOMAN THEN FORGET IT LIGHT CLICKS ON FEMALE ANNOUNCER NEXT TIME DON'T FORGET IT AND EVERY TIME MAKE IT PART OF THE RELATIONSHIP QUAKER STATE CORP FIRED GREY ADVERTISING NEW YORK FROM ITS 15 MILLION TO 20 MILLION MOTOROIL ACCOUNT AND CONSOLIDATED THE BULK OF ITS 25 MILLION IN ADVERTISING WITH CHIAT/DAY OF VENICE CALIF WHICH HAS CREATED ADS FOR THE COMPANY'S MINITLUBE CHAIN SINCE 1989 MADISON AVENUE HAD BEEN WATCHING THE ACCOUNT CAREFULLY GREY HAD BEEN TRYING FOR MONTHS TO CREATE A CAMPAIGN TO REPLACE AN ILLFATED EFFORT STARRING BURT REYNOLDS TAGGED ONE TOUGH MOTOR OIL THE SPOTS STOPPED AIRING LAST SUMMER SOON AFTER HERB BAUM A FORMER SENIOR EXECUTIVE AT CAMPBELL SOUP WAS NAMED QUAKER STATE CHAIRMAN AND CHIEF EXECUTIVE I DIDN'T THINK THE CAMPAIGN WAS EFFECTIVE MR BAUM SAID WE WERE SELLING BURT MORE THAN THE PRODUCT SEVERAL AGENCIES HAD PURSUED THE MOTOROIL BUSINESS MR BAUM SAID BUT THE COMPANY STOPPED SHORT OF HOLDING A FORMAL REVIEW WE WEREN'T SHOPPING THE ACCOUNT HE SAID BUT WHEN A TEAM OF EXECUTIVES FROM CHIAT/DAY PRESENTED A SPECULATIVE CAMPAIGN THAT MR BAUM LIKED HE BOUGHT IT WE WEREN'T MAKING A WHOLE LOT OF PROGRESS AT GREY HE SAID IT'S A NEW YEAR AND IT'S TIME TO MAKE THE CHANGE SEVERAL GREY SUBSIDIARIES RETAIN ASSIGNMENTS IN SALES PROMOTION AND HISPANIC ADVERTISING CHIAT'S QUAKER STATE ADS ARE EXPECTED TO START AIRING IN MARCH THEY CONCENTRATE ON PRODUCT BENEFITS YET ARE OF THE CHIAT/DAY ILK MR BAUM SAID THE AGENCY'S PREVIOUS WORK FOR THE CLIENT INCLUDES ADS FOR MINITLUBE WHICH QUAKER STATE IS RENAMING Q LUBE ONE AD INCLUDED GEESE FLYING IN A Q' FORMATION ACCOUNT SUNMAID GROWERS OF CALIFORNIA A COOPERATIVE OF RAISIN PRODUCERS MOVED ITS ESTIMATED 5 MILLION ACCOUNT TO HAL RINEY & PARTNERS SAN FRANCISCO AFTER A REVIEW THAT INCLUDED SAN FRANCISCO AGENCIES GOODBY BERLIN & SILVERSTEIN AND GOLDBERG MOSER O'NEILL THE SAN FRANCISCO OFFICE OF YOUNG & RUBICAM AND THE INCUMBENT THE LOS ANGELES OFFICE OF GREY ADVERTISING WHO'S NEWS SEATTLE SHOP BORDERS PERRIN & NORRANDER A UNIT OF FOOTE CONE & BELDING COMMUNICATIONS NAMED TRAVIS ASHBY ITS CREATIVE DIRECTOR THE POST WAS VACATED IN OCTOBER BY DAVID AYRISS WHO LEFT TO BECOME A SENIOR ART DIRECTOR AT OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN MR ASHBY 32 YEARS OLD HAD BEEN A VICE PRESIDENT AT AMMIRATI & PURIS NEW YORK 9401050117 940105 TECHNOLOGY BRIEF SEAGATE TECHNOLOGY INC PATENT CROSSLICENSE PACT IS SIGNED WITH HITACHI LTD SEAGATE TECHNOLOGY INC SAID IT SIGNED A WORLDWIDE PATENT CROSSLICENSING AGREEMENT WITH HITACHI LTD WHICH PERMITS EACH COMPANY TO USE MASS STORAGE TECHNOLOGIES COVERED BY THE OTHER'S PATENTS SEAGATE SAID THE AGREEMENT SHOWS THAT THE TWO DATA STORAGE MAKERS WANT TO COMPETE ON COMMERCIAL VALUES UNENCUMBERED BY THE RISK OF PATENT LITIGATION BASED IN SCOTTS VALLEY CALIF SEAGATE IS THE WORLD'S LARGEST MAKER OF HARD DISK DRIVES AND PARTS HITACHI LTD IN TOKYO IS A DIVERSIFIED ELECTRONICS CONCERN THAT MAKES DATA STORAGE AND OTHER PRODUCTS 9401050116 940105 INTERNATIONAL IN REAL ESTATE COUP YELTSIN AND HIS MEN EVICT LEGISLATORS LOCATION LOCATION LOCATION BUILDING SHELLED BY ARMY REMAINS A HOT PROPERTY BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE RUSSIAN FLAG FLIES AGAIN ATOP MOSCOW'S WHITE HOUSE NEW OCCUPANTS BEGAN MOVING IN YESTERDAY THE ACTIVITY COMES A SCANT THREE MONTHS AFTER THE BUILDING WAS SHELLED AND PARTLY BURNED DURING A DAYLONG TANK AND GUN BATTLE BETWEEN PRESIDENT BORIS YELTSIN'S GOVERNMENT AND THE NOWDEFUNCT SOVIETERA PARLIAMENT BELOW THE FLAG THE BIG GOLD CLOCK WHICH HAD BEEN STOPPED AT 1003 EVER SINCE THE OCT 4 ASSAULT IS WORKING ONCE MORE TICKING OFF THE HOURS UNTIL THE NEWLY ELECTED PARLIAMENT CONVENES NEXT TUESDAY BUT THE SPEEDY FACELIFT ISN'T FOR THE NEW PARLIAMENT TO MEET IN THE WHITE HOUSE IT WON'T INSTEAD PRESIDENT YELTSIN HAS APPROPRIATED THE WHITE HOUSE FOR HIS GOVERNMENT MINISTERS AND THE MINISTERS ARE RUSHING TO CLAIM THEIR NEW QUARTERS BEFORE THE NEW PARLIAMENTARIANS CAN GET ORGANIZED TO MAKE A SERIOUS GRAB FOR THE TURF AS THE SITE NOT ONLY OF LAST OCTOBER'S SHOWDOWN BUT ALSO OF MR YELTSIN'S 1991 ANTICOUP STAND ATOP A TANK THE WHITE HOUSE HAS BECOME CENTER STAGE IN RECENT RUSSIAN POLITICAL FIGHTS FORTIFIED BY THE STRONG POWERS HANDED HIM IN THE NEW CONSTITUTION APPROVED DEC 12 MR YELTSIN SEEMS DETERMINED NOT TO LET THE BUILDING FALL INTO ANYONE ELSE'S HANDS ANYTIME SOON BESIDES THE WHITE HOUSE'S SPACIOUS MEETING HALLS AND BIG OFFICES OVERLOOKING THE MOSCOW RIVER MAKE FOR SOME OF THE MOST COMFORTABLE REAL ESTATE IN MOSCOW PRIME MINISTER VIKTOR CHERNOMYRDIN HELD HIS FIRST OFFICIAL MEETING YESTERDAY IN A FIFTHFLOOR WHITE HOUSE OFFICE LAST OCCUPIED BY THE DEPOSED AND IMPRISONED PARLIAMENT SPEAKER RUSLAN KHASBULATOV ACCORDING TO THE INTERFAX NEWS SERVICE MR CHERNOMYRDIN'S FIRST OFFICIAL GUEST WAS THE BISHOP OF ISTRA WHO ALONG WITH SOME OTHER MEMBERS OF THE RUSSIAN ORTHODOX CHURCH CONSECRATED THE BUILDING FOR ITS NEW PURPOSE OF HOUSING NOT THE LEGISLATURE BUT THE GOVERNMENT A SPOKESMAN FOR THE GOVERNMENT PRESS OFFICE NOTED THAT DESPITE THE BLESSING SOME ASPECTS OF THE MOVE ARE NOT COMPLETE BECAUSE THE ESTIMATED 80 MILLION OF REPAIRS ON THE BUILDING HAVEN'T BEEN FINISHED A VAST WHITE TARPAULIN COVERS THE BUILDING'S CENTRAL TOWER ON THE UPPER LEDGES CONSTRUCTION WORKERS CONTINUE TO TOIL AT REPLACING PARTS OF THE MARBLE FACADE PLYWOOD STILL SERVES AS TEMPORARY COVER FOR MANY OF THE TOP WINDOWS ONE AXIOM OF RUSSIAN POLITICS WOULD SEEM TO BE THAT TURF GRABS DON'T COME TROUBLEFREE A WOMAN PHONED THE EMERGENCY NUMBER FOR THE MOSCOW POLICE LAST NIGHT WITH AN ANONYMOUS TIP THAT A BOMB HAD BEEN PLANTED IN THE WHITE HOUSE ACCORDING TO INTERFAX POLICE AND BOMB SQUADS WERE SENT TO INVESTIGATE STILL VICE PREMIER OLEG SOSKOVETS AND SOME OTHER GOVERNMENT MEMBERS ALSO HAVE STARTED SETTLING INTO WHITE HOUSE OFFICES ACCORDING TO INTERFAX A NEW TELEPHONE EXCHANGE IS IN THE WORKS WHICH WILL BETTER CONNECT THE BUILDING TO THE KREMLIN WHERE THE GOVERNMENT ALSO WILL MAINTAIN OFFICES UNDER MR YELTSIN'S ORDERS THE NEW PARLIAMENT IS SLATED TO SQUEEZE INTO TWO FAR LESS CONVENIENT BUILDINGS IN THE CAPITAL THE LOWER CHAMBER OF THE PARLIAMENT CALLED THE STATE DUMA WILL BE IN THE TALL NARROW FORMER COMECON BUILDING ACROSS FROM THE WHITE HOUSE THE UPPER CHAMBER OR FEDERATION COUNCIL IS SUPPOSED TO MEET IN WHAT USED TO BE THE HOUSE OF THE RUSSIAN PRESS A BUILDING SEPARATED FROM THE STATE DUMA BY A FEW MILES OF ROAD THAT DURING RUSH HOUR CAN TURN INTO A NIGHTMARE ALONG WITH INCONVENIENCING THE NEW PARLIAMENTARIANS THIS MOVE HAS IRKED MANY OF THE ABRUPTLY DISPLACED MEMBERS OF THE RUSSIAN PRESS SO TO APPEASE THE PRESS IN THIS POLITICAL VERSION OF MUSICAL CHAIRS THE GOVERNMENT IS OFFERING THEM SPACE IN A BUILDING ON NOVY ARBAT STREET WHICH HAPPENS TO BE MUCH CLOSER TO THE DUMA 9401050115 940105 JOSEPH HORNE WEIGHS OPTIONS TO MERGE TO BE ACQUIRED OR TO REFINANCE DEBT BY TIMOTHY D SCHELLHARDT AND TIMOTHY AEPPEL STAFF REPORTERS OF THE WALL STREET JOURNAL PITTSBURGH JOSEPH HORNE CO AN INDEPENDENTLY OWNED OPERATOR OF 10 DEPARTMENT STORES IN PENNSYLVANIA SAID IT IS WEIGHING A POSSIBLE COMBINATION WITH ANOTHER RETAILER HORNE SAID IT HAS RETAINED CS FIRST BOSTON CORP A UNIT OF SWISS CS HOLDING AG TO EVALUATE THE COMPANY'S OPTIONS INCLUDING A MERGER BEING ACQUIRED BY ANOTHER COMPANY OR DEBT REFINANCING SOME DECISION IS LIKELY IN THE NEXT MONTH OR SO SAID ONE PERSON FAMILIAR WITH THE SITUATION HORNE WAS THE TARGET OF AN UNSUCCESSFUL 1988 ATTEMPT BY DILLARD DEPARTMENT STORES OF LITTLE ROCK ARK AND EDWARD J DEBARTOLO CORP THE YOUNGSTOWN OHIO DEVELOPER TO ACQUIRE IT FOR 234 MILLION HORNE FILED SUIT AGAINST THEM CHARGING THE TWO WITH RACKETEERING AND IN 1992 SETTLED THE DISPUTE BY SELLING ITS FIVE OHIO DEPARTMENT STORES TO DILLARD AND DEBARTOLO MICHAEL L PULTE HORNE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY HAS HAD A BURST OF INQUIRIES IN RECENT MONTHS INCLUDING CALLS ABOUT TAKEOVERS AS WELL AS MERGERS ALL OF A SUDDEN PEOPLE SEE THE RETAILING BUSINESS ESPECIALLY THE DEPARTMENTSTORE BUSINESS BOTTOMING OUT AND STARTING TO COME BACK AND THEY FIGURE IT'S TIME TO START EXPANDING AGAIN THROUGH ACQUISITIONS WE HAPPEN TO BE ONE OF THE PEOPLE GETTING UNSOLICITED INQUIRIES HE SAID MR PULTE WOULDN'T IDENTIFY SUITORS BUT SAID THEY WERE ALL LOOKING TO ENTER THE PITTSBURGH MARKET HE ALSO SAID HORNE HAS APPROACHED ANOTHER UNIDENTIFIED RETAILER ABOUT A POSSIBLE MERGER ONE DEPARTMENTSTORE OPERATOR CONSIDERED INTERESTED IN THE PITTSBURGH AREA IS FEDERATED DEPARTMENT STORES INC WHICH THIS WEEK PROPOSED A MERGER WITH RH MACY & CO BUT A FEDERATED SPOKESMAN DENIED INTEREST IN HORNE'S SAYING WE'RE INTERESTED IN A COMBINATION OF FEDERATED AND MACY'S MR PULTE MAINTAINED THAT PITTSBURGH IS VERY MUCH A DEPARTMENT STORE TOWN BECAUSE THERE ARE FEW OF THE BIG DISCOUNT OPERATORS SUCH AS WALMART STORES INC'S SAM'S WAREHOUSE UNIT IN THE AREA IT'S ALSO VIRTUALLY IMPOSSIBLE FOR DEPARTMENTSTORE NEWCOMERS TO GET INTO LOCAL SHOPPING MALLS BECAUSE OF BUILDING RESTRICTIONS AND COVENANTS CONTROLLED BY HORNE'S AND KAUFMANN'S HORNE WHICH HAS ANNUAL SALES OF BETWEEN 200 MILLION AND 250 MILLION HAS ALSO WEATHERED PITTSBURGH'S WEAK ECONOMY FAIRLY WELL HORNE'S SAMESTORE SALES OR SALES OF STORES OPENED AT LEAST A YEAR ROSE 5 IN NOVEMBER FROM THE PRIOR YEAR AND INCREASED 32 IN DECEMBER FROM THE YEAR EARLIER THE DECEMBER INCREASE IS NOTABLE SINCE THE YEARAGO SALES WERE ESPECIALLY STRONG UP 11 FROM DECEMBER 1991 9401050114 940105 TEXAS JOURNAL LETTERS TO THE EDITOR DOCTORS VS LAWYERS IN READING THE TRIAL LAWYERS' RESPONSE IN YOUR DEC 22 ARTICLE HOW MUCH DO FIRMS HATE PUNITIVE DAMAGES A LOT I HAD A PAINFUL CHUCKLE THE NUMBERS THAT WERE USED ARE PROBABLY TRUE HOWEVER HAVING BEEN INVOLVED AS A PHYSICIAN IN A SUIT I CAN TELL YOU THAT PUNITIVE DAMAGES ARE A MEANS WHEREBY LAWYERS ARE ABLE TO EFFECT MOREFAVORABLE OUTOFCOURT SETTLEMENTS IT IS A FORM OF EXTORTION AND IT SHOULD BE STOPPED IMMEDIATELY MANY CASES WITHOUT MERIT ARE SETTLED BECAUSE OF THE THREAT OF PUNITIVE DAMAGES ALTHOUGH THE PUNITIVE DAMAGES ARE NEVER SHOWN IN THE STATISTICS AS HAVING BEEN COLLECTED 9401050113 940105 ENTERPRISE ACCOUNTING RULEMAKING BOARD'S PROPOSAL DRAWS FIRE SUGGESTED SWITCH ON EMPLOYEE STOCK OPTIONS SEEN HURTING PROFIT HIRING BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL FORGET HIGH TAXES GOVERNMENT RED TAPE AND CHEAP IMPORTS SMALL BUSINESSES HAVE FOUND A NEW ENEMY THE FINANCIAL ACCOUNTING STANDARDS BOARD SMALLBUSINESS OWNERS ARE TAKING AIM AT THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS BECAUSE IT WANTS COMPANIES TO DEDUCT THE VALUE OF EMPLOYEE STOCK OPTIONS FROM PROFITS CURRENTLY STOCKOPTION COSTS DON'T PENALIZE EARNINGS THE FASB PROPOSAL IS STIRRING AN UNEXPECTEDLY FIERCE OUTCRY ESPECIALLY FROM THE SMALLBUSINESS SECTOR THE ACCOUNTING BOARD HAS BEEN DELUGED WITH ABOUT 500 LETTERS OPPOSING ITS SUGGESTED RULE MANY FROM SMALLER COMPANIES THOUGH THE COMMENT PERIOD ENDED LAST WEEK LETTERS ARE STILL ARRIVING IN ADDITION SMALLBUSINESS GROUPS ARE LOBBYING CONGRESS TO BLOCK THE POSSIBLE ACCOUNTING CHANGE MANY ENTREPRENEURS FEAR THE PROPOSED SWITCH COULD HURT THEIR PROFITS AND RECRUITMENT EFFORTS SOME SMALL BUSINESSES SAY THEY MAY HAVE TO STOP GIVING STOCK OPTIONS ALTOGETHER OR CURB THEIR USE BELOW SENIOR MANAGEMENT LEVELS SMALL BUSINESSES DISLIKE THE FASB PROPOSAL BECAUSE THEY GENERALLY USE STOCK OPTIONS RATHER THAN HIGH SALARIES TO COMPETE WITH BIGGER COMPANIES FOR EXECUTIVE TALENT THE FASB RULE ALSO WOULD HURT PROFITS OF SMALL COMPANIES THAT LIBERALLY USE OPTIONS MORE WIDELY THAN BIGGER COMPETITORS CONCLUDES A RECENT SURVEY BY ACCOUNTANTS COOPERS & LYBRAND THE SURVEY OF 27 CONCERNS FOUND THAT THE FASB PROPOSAL WOULD REDUCE STARTUP OR HIGHTECH FIRMS' NET PROFITS BY A DEVASTATING 27 COMPARED WITH ONLY A 34 DROP FOR MATURE BIGGER COMPANIES YOUR EXPOSURE DRAFT ON THE ACCOUNTING FOR STOCK OPTIONS IS A DISASTER FOR AMERICA CRAIG M SWANSON VICE PRESIDENT FOR FINANCE OF PROTOCOL SYSTEMS INC A BEAVERTON ORE MEDICALEQUIPMENT MAKER DECLARED IN HIS LETTER TO THE FASB YOUR CURRENT PATH IS GOING TO KILL AMERICAN ENTREPRENEURISM AND LEAD TO THE END OF THE FASB AS AN INDEPENDENT BODY AT THIS POINT HOWEVER SUCH STIFF OPPOSITION SEEMS UNLIKELY TO DISSUADE THE FASB WE ARE AWARE OF THE CONCERNS OF SMALL BUSINESSES SAYS DENNIS BERESFORD CHAIRMAN OF THE ACCOUNTING BOARD BUT WE FEEL THAT ISSUING STOCK OPTIONS WITHOUT ANY COST GIVES THE ISSUING COMPANY AN UNFAIR ADVANTAGE AND IS AN ACCOUNTING LOOPHOLE THAT NEEDS TO BE ADDRESSED THE FASB WILL HOLD HEARINGS IN MARCH AS A RESULT SOME SMALL BUSINESSES ARE ALREADY MULLING STEPS TO LESSEN THE IMPACT OF THE PROPOSED STOCKOPTION RULE PROTOCOL WOULD ISSUE OPTIONS ONLY TO ITS TOP FIVE TO 10 EXECUTIVES MR SWANSON SAYS THAT'S BECAUSE OUR CURRENT PRACTICE OF GIVING OPTIONS TO 200 OF OUR 250 EMPLOYEES WOULD REDUCE OUR ANNUAL NET PROFIT OF 32 MILLION BY CLOSE TO 50 HE SAYS THAT PROTOCOL'S SALES TOPPED 36 MILLION IN 1993 WITHOUT OPTIONS TALENTED PEOPLE WON'T WANT TO TAKE THE RISK OF GROWING WITH US MR SWANSON CONTENDS THE ACCOUNTING BOARD IS ERODING THE AMERICAN DREAM AT OUTBACK STEAKHOUSE INC ADOPTION OF THE FASB PROPOSAL MEANS WE WOULD PROBABLY DISCONTINUE SUBSTANTIALLY ALL OF THE OPTIONS WE ISSUE TO 140 OF OUR EXECUTIVES AND STORE MANAGERS SAYS ROBERT MERRITT SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE TAMPA FLA RESTAURANT CHAIN WITH 146 OUTLETS IN 20 STATES THE COMPANY POSTED REVENUE OF 195 MILLION DURING THE FIRST NINE MONTHS OF 1993 MR MERRITT SAYS OUTBACK USES STOCK OPTIONS NOT JUST TO ATTRACT GOOD PERSONNEL BUT TO KEEP OUR PEOPLE INTERESTED IN THE OVERALL PERFORMANCE OF THE COMPANY OUTBACK HAS FOUND THAT GIVING STORE MANAGERS A SHARE OF ITS BUSINESS MAKES THEM PARTNERS WITH THE COMPANY HE INSISTS DROPPING STOCK OPTIONS COULD MAKE IT HARDER TO CONVINCE EMPLOYEES THAT THEIR HARD WORK ENHANCES THEIR OWN WEALTH MR MERRITT ADDS SOME SMALL COMPANIES WORRY THAT THEY MAY NOT SURVIVE IF THEY NO LONGER CAN AFFORD TO EMPLOY STOCK OPTIONS AS A RECRUITMENT TOOL WITHOUT THE USE OF STOCK OPTIONS MY COMPANY WOULDN'T BE ABLE TO COMPETE WITH LARGER COMPANIES TO ATTRACT EXECUTIVE TALENT SAYS JAMES I CHARNE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF ABSOLUTE ENTERTAINMENT INC A SMALL MAKER OF COMPUTERGAME SOFTWARE IN SADDLE RIVER NJ HE CONTINUES INABILITY TO ISSUE STOCK OPTIONS TO KEEP TALENTED PEOPLE COULD BE A FACTOR IN PUTTING US OUT OF BUSINESS SEVERAL YEARS AGO MR CHARNE RECALLS ABSOLUTE WAS ABLE TO RECRUIT A LEADING SOFTWARE DESIGNER BY OFFERING A GENEROUS NUMBER OF STOCK OPTIONS THAT DESIGNER NOW OWNS MORE STOCK OPTIONS THAN ANYONE ELSE AT THE COMPANY MR CHARNE NOTES AND THE DESIGNER PLANS TO STAY EVEN THOUGH ABSOLUTE REPORTED A NET LOSS OF 438 MILLION IN THE FIRST NINE MONTHS OF 1993 DURING THE SAME 1992 PERIOD ABSOLUTE HAD NET INCOME OF 606000 FOR OTHER SMALL COMPANIES ISSUANCE OF THE FASB STOCKOPTION RULE COULD AFFECT BOTH MANAGERS AND RANKANDFILE EMPLOYEES DAVEY TREE EXPERT CO WOULD HAVE TO TAKE A HARD LOOK AT ITS SPECIAL STOCKOPTION PROGRAM FOR KEY EMPLOYEES SAYS BRADLEY L COMPORT CONTROLLER OF THE TREE AND LAWNSERVICE COMPANY IN KENT OHIO MR COMPORT SAYS DAVEY CURRENTLY HAS 116000 OPTIONS AVAILABLE FOR KEY EMPLOYEES THESE STAFF MEMBERS CAN USE THE OPTIONS TO BUY SHARES FROM THE EMPLOYEEOWNED COMPANY WHILE THE OPTIONS DON'T TRADE PUBLICLY DAVEY IS WILLING TO BUY THEM BACK LATER BUT DAVEY MIGHT HAVE TO STOP THE PROGRAM OR GEAR IT DOWN IF THE FASB RULE TAKES EFFECT SAYS MR COMPORT ABOUT HALF OF THE COMPANY'S 5000 EMPLOYEES OWN STOCK PURCHASED IN A 1979 EMPLOYEE BUYOUT WITH THE AVERAGE HOLDING TOTALING 1250 SHARES THE DAVEY CONTROLLER ESTIMATES AN OUTSIDE APPRAISER VALUES THE STOCK EACH YEAR PARTLY BASED ON DAVEY'S PROFIT AND ACCOUNTING CHANGES MR COMPORT SAYS THAT A MANDATORY EARNINGS CHARGE FOR STOCK OPTIONS COULD REDUCE THE WORTH OF EACH EMPLOYEEOWNER'S STOCK NOW VALUED AT 2765 A SHARE BY PENALIZING PROFITS WITH STOCKOPTION COSTS THE FASB WOULD BE DOING A DISSERVICE TO OUR EMPLOYEES SMALL BUSINESS AND THE INVESTING PUBLIC IN GENERAL MR COMPORT ASSERTS IF THE FASB PURSUES ITS STOCKOPTION PROPOSAL HE SAYS DAVEY TREE WILL URGE OHIO LEGISLATORS IN CONGRESS TO INTERVENE FIVE PENDING FEDERAL BILLS AIM TO HALT THE PROPOSED RULE ONE BILL SUPPORTS IT ABSOLUTE ENTERTAINMENT INC SADDLE RIVER NJ REPORTED A LOSS OF 438000 IN THE FIRST NINE MONTHS OF 1993 YESTERDAY'S ENTERPRISE ARTICLE ABOUT A STOCKOPTION ACCOUNTING PROPOSAL INCORRECTLY STATED THAT THE LOSS WAS 438 MILLION 9401050112 940105 UNITED AIRLINES TO EXPAND FLIGHTS TO PACIFIC REGION CHICAGO UNITED AIRLINES EXPANDING ITS PRESENCE IN THE PACIFIC REGION SAID IT PLANS TO ADD FLIGHTS TO CHINA HONG KONG AND AUSTRALIA THE UAL CORP UNIT SAID IT WILL START DAILY NONSTOP SERVICE BETWEEN TOKYO AND BOTH BEIJING AND SHANGHAI THE NEW FLIGHTS 14 A WEEK ARE SET TO BEGIN FEB 13 UNITED SAID IT HAS RECENTLY OFFERED ONLY THREE FLIGHTS A WEEK TO CHINA UAL IS ADDING FOUR FLIGHTS A WEEK TO HONG KONG FROM SAN FRANCISCO BOOSTING ITS USTOHONG KONG SCHEDULE TO 18 WEEKLY FLIGHTS SERVICE IS SET TO BEGIN IN JUNE DEPENDING ON THE AVAILABILITY OF LANDING SLOTS IN HONG KONG UNITED ALSO MAKES SEVEN FLIGHTS TO HONG KONG FROM LOS ANGELES UNITED ALSO WILL ENTER THE SAN FRANCISCOSYDNEY NONSTOP MARKET WITH THREE FLIGHTS A WEEK SET TO BEGIN IN JUNE ADDING INTERNATIONAL FLIGHTS FROM SAN FRANCISCO WILL ALLOW UNITED TO GENERATE COST EFFICIENCIES BY BRINGING MORE PASSENGERS THROUGH ITS SAN FRANCISCO HUB ALREADY THE LARGEST TRANSPACIFIC CARRIER UNITED IS POISED TO CAPITALIZE ON GROWING ECONOMIES IN THE PACIFIC REGION STILL IT FACES A NUMBER OF COMPETITORS INCLUDING SINGAPORE AIRLINES JAPAN AIR LINES AND CATHAY PACIFIC 9401050111 940105 CENTERIOR TAKES MAJOR CHARGE HALVES DIVIDEND MOVES TIED TO OVERBUILDING BY OHIO UTILITY IN 1980S AND A SQUEEZE ON RATES BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL CENTERIOR ENERGY INC INDEPENDENCE OHIO TOOK A 102 BILLION FOURTHQUARTER CHARGE AND SLASHED ITS DIVIDEND IN HALF AS IT SEEKS TO REPOSITION ITSELF IN THE INCREASINGLY COMPETITIVE ELECTRIC UTILITY INDUSTRY THE ACTIONS STEM FROM AN OVERLY AMBITIOUS BUILDING PLAN IN THE 1980S THAT HAS SADDLED THE COMPANY WITH HIGH COSTS AND DEBT EXPENSES MOREOVER INCREASING COMPETITION HAS MADE RATE BOOSTS IMPRACTICAL BECAUSE THE COMPANY ALREADY IS A HIGHCOST ENERGY PROVIDER IN COMPARISON WITH NEIGHBORING UTILITIES RECOGNIZING THE LIKELIHOOD OF MORE OPEN COMPETITION FOR CUSTOMERS CENTERIOR WROTE OFF 590 MILLION OR 408 A SHARE IN DEFERRED RATE INCREASES THE COMPANY ALSO TOOK A CHARGE OF 430 MILLION OR 297 A SHARE TO WRITE OFF ITS INVESTMENT IN THE HALFFINISHED PERRY UNIT 2 NUCLEAR POWER PLANT LOSS FOR YEAR THE CHARGES WILL RESULT IN A LOSS FOR 1993 THE COMPANY SAID IN 1992 IT EARNED 212 MILLION OR 150 A SHARE ON REVENUE OF 24 BILLION THE QUARTERLY DIVIDEND CUT TO 20 CENTS A SHARE FROM 40 CENTS WILL BE PAYABLE FEB 15 TO SHARES OF RECORD JAN 21 THE ACTIONS WE ARE TAKING ARE IN RESPONSE TO INCREASING COMPETITION IN OUR SERVICE TERRITORY IN PART DUE TO SURPLUS GENERATING CAPACITY SAID ROBERT J FARLING CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CENTERIOR ENERGY ESTIMATES MADE IN THE 1980S FOR FUTURE DEMAND DID NOT MATERIALIZE IN THIS REGION SEVERAL ANALYSTS HOWEVER EXPECTED STERNER MEASURES ESPECIALLY CONCERNING THE COMPANY'S PAYOUT THE DIVIDEND CUT REALLY WASN'T ENOUGH SAID DAN SCOTTO A UTILITIES ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP ANALYSTS WERE HOPING THAT THE DIVIDEND WOULD BE CUT STEEPER OR BETTER YET OMITTED ENTIRELY BY CUTTING THE DIVIDEND CENTERIOR WILL CONSERVE ABOUT 117 MILLION A YEAR IN CASH THE EXTENSIVE WRITEDOWNS AREN'T EXPECTED TO AFFECT THE DIVIDEND PAYMENT DESPITE EXPECTED YEAREND NEGATIVE RETAINED EARNINGS WHICH WOULD PLACE THE COMPANY IN VIOLATION OF CERTAIN LENDING AGREEMENTS THE COMPANY SAID IT EXPECTS LENDERS TO GRANT WAIVERS ALLOWING THE DIVIDENDS TO BE PAID BUT THE MOST CRUCIAL PROBLEM FACING CENTERIOR HIGH ENERGY RATES AT ITS OPERATING UNITS TOLEDO EDISON CO AND CLEVELAND ELECTRIC ILLUMINATING CO REMAIN A VEXING ISSUE THE COMPANY HAS A RATE FREEZE IN EFFECT THROUGH 1995 THE COMPANY NEEDS TO FIND WAYS TO REDUCE THEIR RATES BECAUSE THEY REMAIN ESSENTIALLY THE HIGHEST COST PROVIDER IN THEIR REGION SAID BARRY ABRAMSON UTILITIES ANALYST AT PRUDENTIAL SECURITIES INC LOWER RATES ARE IMPORTANT BECAUSE OF THEIR LARGE INDUSTRIAL BASE WHICH IS ALSO UNDER PRESSURE TO CUT COSTS ACCORDING TO MR ABRAMSON CENTERIOR'S AVERAGE INDUSTRIAL RATE IS ABOUT 662 CENTS PER KILOWATT HOUR BY COMPARISON CINCINNATI GAS & ELECTRIC CO HAS AN AVERAGE INDUSTRIAL RATE OF 444 CENTS A KILOWATT HOUR AND THAT RATE IS EXPECTED TO FALL IF THE COMPANY SUCCESSFULLY COMPLETES ITS PLANNED MERGER WITH PSI RESOURCES INC PLAINFIELD IND AND COMPETITION PROBLEMS HAVE HIT THE COMPANY'S RESIDENTIAL SERVICE AREAS CLEVELAND PUBLIC POWER A MUNICIPAL POWER PROVIDER HAS BEEN GRABBING ABOUT 15000 CUSTOMERS A YEAR FROM CENTERIOR CENTERIOR SAID THE COMPANY ALSO UNVEILED A CORPORATE STRATEGIC PLAN AIMED AT ENHANCING ITS COMPETITIVE POSITION IN THE EVOLVING ELECTRIC UTILITY INDUSTRY UNDER THE PLAN WHICH RUNS THROUGH 2001 CENTERIOR WON'T BUILD ANY NEW CAPACITY WILL KEEP CAPITAL EXPENDITURE AT ABOUT 250 MILLION A YEAR AND CONTINUE COSTCUTTING PROGRAMS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CENTERIOR SHARES FINISHED UNCHANGED AT 13125 ON SLIGHTLY ABOVEAVERAGE TRADING YESTERDAY'S ACTIONS ARE A MOVE IN THE RIGHT DIRECTION BUT IT DOESN'T SOLVE ALL THEIR PROBLEMS SAID ANALYST JAY DOBSON AT SMITH BARNEY SHEARSON INC AND THE STOCK HAS REALLY HAD THE STUFFING PUNCHED OUT OF IT IN THE LAST FEW MONTHS SO IT'S HARD FOR IT TO DROP TOO MUCH FURTHER 9401050110 940105 MARKETING BRIEF ARGYLE TELEVISION HOLDING INC CONCERN COMPLETES PURCHASE OF TIMES MIRROR TV STATIONS ARGYLE TELEVISION HOLDING INC SAID IT COMPLETED THE ACQUISITION OF TWO TEXAS TELEVISION STATIONS FROM TIMES MIRROR CO THE CBSAFFILIATED STATIONS KDFW IN DALLAS AND KTBC IN AUSTIN WERE PART OF A FOURSTATION PACKAGE TIMES MIRROR AGREED LAST YEAR TO SELL TO ARGYLE FOR ABOUT 335 MILLION ARGYLE BASED IN SAN ANTONIO COMPLETED THE PURCHASE OF THE OTHER TWO STATIONS IN JULY A TIMES MIRROR SPOKESWOMAN SAID THE FINAL PRICE WAS 320 MILLION IN CASH PLUS WARRANTS THAT SHE COULDN'T VALUE TIMES MIRROR IS A MEDIA AND INFORMATION COMPANY BASED IN LOS ANGELES ARGYLE IS AN AFFILIATE OF ARGYLE COMMUNICATIONS PARTNERS LP IN SAN ANTONIO 9401050109 940105 INTERNATIONAL LATEST GERMAN ECONOMIC DATA SHOW TENTATIVE RECOVERY MAY BE FALTERING BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT WESTERN GERMANY'S INDUSTRIAL PRODUCTION FELL A PRELIMINARY 21 IN NOVEMBER FROM OCTOBER FEEDING FEARS THAT THE TENTATIVE ECONOMIC RECOVERY WAS HEADING FOR A DOWNTURN IN LATE 1993 GERMANY'S JOBS CRISIS ALSO HAS TAKEN A TURN FOR THE WORSE TOTAL GERMAN UNEMPLOYMENT ROSE TO ABOUT 37 MILLION LAST MONTH FROM 3560000 IN NOVEMBER ACCORDING TO URSULA ENGELENKEFER A SENIOR TRADE UNION OFFICIAL WHO SITS ON THE ADMINISTRATIVE BOARD OF THE GOVERNMENT'S FEDERAL LABOR OFFICE IN NUREMBURG THE AGENCY IS SCHEDULED TO ANNOUNCE DECEMBER JOBS DATA TODAY INCLUDING THE PERCENTAGE OF UNEMPLOYED MS ENGELENKEFER SAID THAT WESTERN GERMANY'S DECEMBER JOBLESS TOTAL ROSE TO MORE THAN 25 MILLION FROM 24 MILLION IN NOVEMBER SHE SAID 1175000 EASTERN GERMANS WERE OUT OF WORK LAST MONTH UP FROM 1150000 A MONTH EARLIER MEANWHILE THE ECONOMICS MINISTRY LOWERED ITS INDUSTRIAL OUTPUT FIGURES WHICH NOW SHOW A 07 DECLINE IN OCTOBER FROM SEPTEMBER COMPARED WITH THE 04 CONTRACTION INITIALLY REPORTED THE MINISTRY ALSO SAID NOVEMBER OUTPUT FELL 45 FROM NOVEMBER 1992 ACCELERATING THE YEARTOYEAR DECLINE CLOCKED AT 4 IN OCTOBER IN WHAT IS OFTEN DEFINED AS A BETTER INDICATOR INDUSTRIAL PRODUCTION IN THE TWOMONTH PERIOD OF OCTOBERNOVEMBER WAS REPORTED TO HAVE BEEN 15 BELOW THE AUGUSTSEPTEMBER AVERAGE AND OFF 45 FROM THE LIKE 1992 PERIOD THE ECONOMICS MINISTRY ATTRIBUTED THE SHARPERTHANEXPECTED DECLINE TO NOVEMBER'S UNUSUAL SPELL OF COLD WEATHER WHICH HELPED TO DEPRESS CONSTRUCTION ACTIVITY BY 65 IN THE MONTH AFTER A POSITIVE THIRD QUARTER WESTERN GERMANY NOW FACES A DECLINE IN FOURTH QUARTER GROSS DOMESTIC PRODUCT MANY ANALYSTS SAY AND WITH 1994 A BIG ELECTION YEAR CHANCELLOR HELMUT KOHL'S GOVERNMENT IS COMING UNDER PRESSURE TO PRODUCE A SUSTAINABLE ECONOMIC UPSWING ECONOMISTS SAY DEMAND IS KEPT SLACK BY CONSUMERS WHO WORRY ABOUT THEIR JOBS FORECASTS BY BONN'S ECONOMIC ADVISERS OF NEARZERO GROWTH IN WESTERN GERMANY'S ECONOMY THIS YEAR AFTER A 2 CONTRACTION IN 1993 ALSO HAVEN'T HELPED BUILD BUSINESS CONFIDENCE WHILE COUNTING ON A REVIVAL IN FOREIGN DEMAND TO LIFT EUROPE'S LARGEST ECONOMY OUT OF ITS TROUGH ECONOMISTS SEE LITTLE IMPULSE COMING FROM THE REST OF WESTERN EUROPE IN 1994 WHEN THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SEES ONLY 15 GROWTH FOR THE REGION THE PROBLEM IS WHERE WILL RECOVERY COME FROM ASKS HOLGER FAHRINKRUG AN ECONOMIST AT THE UNION BANK OF SWITZERLAND IN FRANKFURT OUR EUROPEAN EXPORT MARKETS ARE WEAK AND ON THE DOMESTIC SIDE THERE WILL BE MORE HITS THAN POSITIVE EFFECTS THOSE HITS RISE FROM BONN'S EFFORTS TO CURB PUBLICSECTOR SPENDING AND INDUSTRY EFFORTS TO CUT COSTS RESPONDING TO THE HIGHEST JOBLESS LEVELS SINCE GERMANY'S POSTWAR RECONSTRUCTION TRADE UNIONS HAVE ISSUED DEMANDS FOR NEW STIMULUS PROGRAMS THAT SECURE RECOVERY AND CREATE NEW JOBS THE BUNDESBANK MUST SUPPORT THIS AIM WITH FURTHER INTERESTRATE CUTS MS ENGELENKEFER SAID IN HER STATEMENT 9401050108 940105 GM EXECUTIVES WON'T RECEIVE STOCK BONUSES AUTO MAKER'S FUTURE GRANTS MAY BE TIED TO PAYOUTS FOR HOURLY WORKERS BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP IN A BREAK WITH PAST PRACTICE WON'T PAY BONUSES TO NORTH AMERICAN EXECUTIVES DESPITE THE FACT THAT IT SHOWED AN OVERALL PROFIT IN 1993 AND IS CONSIDERING LINKING FUTURE BONUSES TO PROFITSHARING PAYMENTS FOR HOURLY WORKERS SEPARATELY GM'S PRESIDENT JOHN F SMITH JR SAID THE AUTO MAKER PLANS TO IMPORT A VERSION OF THE OPEL OMEGA THAT GM WILL BUILD IN GERMANY AND SELL IT IN THE US AS A CADILLAC GM OFFICIALS SAID THE CAR TO BE CALLED THE CADILLAC LSE COULD ARRIVE IN THE US IN EARLY 1996 MR SMITH SAID THE CAR HAS BROAD STRATEGIC SIGNIFICANCE BECAUSE IT SHOWS GM'S FOREIGN AND DOMESTIC OPERATIONS CAN LEARN TO SHARE PRODUCTS INSTEAD OF SPENDING BILLIONS TO DESIGN SEPARATEBUTSIMILAR VEHICLES THE DECISIONS UNDERSCORE THAT MR SMITH AND GM'S BOARD ARE CONTINUING TO PUSH FOR DEEP REFORMS OF THE NO 1 AUTO MAKER'S HIDEBOUND CULTURE EVEN THOUGH US SALES ARE REBOUNDING AND THE CORPORATE BOTTOM LINE IS BACK IN THE BLACK ONE OFTENVOICED FEAR OF GM CRITICS HAS BEEN THAT ONCE THE CURRENT CRISIS SEEMS PAST THE COMPANY WILL REVERT TO ITS OLD WAYS ONE OF THE TOUCHIEST ISSUES HAS BEEN EXECUTIVE BONUSES WHICH HAVE MADE GM A LIGHTNING ROD FOR CRITICS OF CORPORATE COMPENSATION PRACTICES IN 1987 GM RAISED UNION HACKLES WHEN IT PAID ITS TOP 5000 EXECUTIVES BONUSES TOTALING 157 MILLION EVEN THOUGH PROFITS FROM US AUTO OPERATIONS WERE SO SLIM THAT HOURLY WORKERS RECEIVED NO PROFITSHARING PAYMENTS UNDER THE TERMS OF THE COMPANY'S AGREEMENT WITH THE UNITED AUTO WORKERS BONUSES PAID IN THE FORM OF OUTRIGHT GRANTS OF STOCK USED TO ACCOUNT FOR AS MUCH AS 40 OF A GM EXECUTIVE'S TOTAL ANNUAL PAY BUT GM HASN'T PAID BONUSES TO NORTH AMERICAN EXECUTIVES SINCE EARLY 1990 FOR THE 1989 YEAR THIS YEAR AS IT HAS IN THE PAST GM WILL GIVE EXECUTIVES OPTIONS TO BUY GM STOCK AT MARKET PRICES BUT IT WON'T MAKE OUTRIGHT GRANTS OF STOCK TO DOMESTIC EXECUTIVES UNTIL THERE IS DRAMATIC IMPROVEMENT IN OUR OVERALL PROFITABILITY SAID HARRY J PEARCE GM EXECUTIVE VICE PRESIDENT IN AN INTERVIEW SOME EXECUTIVES IN GM'S PROFITABLE OVERSEAS OPERATIONS MAY RECEIVE STOCKGRANT BONUSES GM EXECUTIVES SAID FURTHER GM IS CONSIDERING A MAJOR CHANGE IN ITS COMPENSATION SYSTEM THAT WOULD FOR THE FIRST TIME LINK FUTURE BONUSES FOR NORTH AMERICAN EXECUTIVES TO PROFITSHARING PAYMENTS FOR HOURLY EMPLOYEES SAID WILLIAM E HOGLUND EXECUTIVE VICE PRESIDENT AND BOARD MEMBER IN AN INTERVIEW AT THE DETROIT AUTO SHOW YESTERDAY THE TRIGGER POINT FOR BONUSES AND PROFITSHARING SHOULD BE EXPLAINABLE AND THE SAME FOR THE WHOLE TEAM MR HOGLUND SAID ADDING THAT GM'S BOARD HASN'T REACHED A FINAL DECISION THE IDEA OF LINKING EXECUTIVE BONUSES TO PROFITSHARING FOR HOURLY WORKERS ISN'T NEW AT GM BUT WHEN ELMER JOHNSON WHO WAS A GM EXECUTIVE VICE PRESIDENT AT THE TIME LAST SUGGESTED IT IN APRIL 1988 HE GOT THE COLD SHOULDER FROM MOST OF HIS COLLEAGUES AND WITHIN A FEW WEEKS HE QUIT TO REJOIN HIS LAW PRACTICE IN CHICAGO 9401050107 940105 VF BUYS HH CUTLER WYOMISSING PA APPAREL MAKER VF CORP SAID IT COMPLETED THE ACQUISITION OF CLOSELY HELD CLOTHING MAKER HH CUTLER CO FOR ABOUT 155 MILLION WHICH INCLUDES THE ASSUMPTION OF DEBT CUTLER BASED IN GRAND RAPIDS MICH MARKETS WALT DISNEY FISHERPRICE CUTLER AND PRIVATELABEL CHILDREN'S CLOTHES THE COMPANY HAD 1993 REVENUE OF ABOUT 210 MILLION 9401050106 940105 LAW LEGAL BEAT PRODUCT'S COLOR ALONE CAN'T GET TRADEMARK PROTECTION COURT SAYS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL COMPANIES CAN'T GET TRADEMARK PROTECTION FOR A PRODUCT'S COLOR ALONE A FEDERAL APPEALS COURT RULED IN A DECISION THAT COULD COMPLICATE SOME NATIONAL MARKETING CAMPAIGNS THE RULING BY A THREEJUDGE PANEL IN SAN FRANCISCO ADDS TO THE SHARP DIVISION AMONG FEDERAL APPEALS COURTS ON THE QUESTION OF WHETHER A SINGLE COLOR CAN EVER MERIT TRADEMARK PROTECTION WITH THE LATEST DECISION MARKETERS OF DISTINCTIVELY COLORED PRODUCTS FACE A CONFUSING PATCHWORK OF LAWS A PRODUCT COULD GET TRADEMARK PROTECTION IN MINNESOTA AND WASHINGTON DC BUT NOT IN ILLINOIS OR IN CALIFORNIA THE RULING CAME IN A LAWSUIT BY QUALITEX CO A SMALL CHICAGO MANUFACTURER OF GREENGOLD PADDING THAT IS USED BY DRY CLEANERS AND GARMENT MAKERS ON MACHINES THAT PRESS CLOTHES A COMPETITOR HAD STARTED SELLING PADDING OF THE SAME HUE IN REJECTING PROTECTION FOR THE COLOR ALONE THE COURT SAID MANUFACTURERS WITH DISTINCTIVELY COLORED PRODUCTS CAN SEEK TO RELY ON EXISTING LAW THAT PROTECTS TRADE DRESS THAT IS THE OVERALL APPEARANCE OF A PRODUCT COLOR IS ONE FACTOR BUT NOT A DETERMINATIVE ONE UNDER A TRADE DRESS ANALYSIS DRAWING DISTINCTIONS BETWEEN CLOSE SHADES OF COLOR COULD PRESENT UNNECESSARY PROBLEMS THE COURT SAID ADEQUATE PROTECTION IS AVAILABLE WHEN COLOR IS COMBINED IN DISTINCTIVE PATTERNS OR DESIGNS OR COMBINED IN DISTINCTIVE LOGOS BASED ON THE OVERALL APPEARANCE OF THE QUALITEX PADS THE COURT AFFIRMED THAT THE SECOND COMPANY HAD ENGAGED IN UNFAIR COMPETITION BY PRODUCING A PRODUCT WITH A CONFUSINGLY SIMILAR LOOK BUSINESSES AND COURTS THAT OPPOSE TRADEMARK PROTECTION FOR COLORS SAY IT'S UNREASONABLE TO ALLOW ONE COMPANY IN ESSENCE TO OWN A COLOR PROPONENTS SAY BUSINESSES SHOULD BE ALLOWED TO USE COLOR AS A DISTINCTIVE AND KEY PROMOTIONAL TOOL FOR INSTANCE THE PINK OF OWENSCORNING FIBERGLAS CORP INSULATION WHICH FIGURED IN A LANDMARK CASE IN COLORTRADEMARK LAW IN THAT CASE A SPECIAL WASHINGTON COURT THAT HEARS PATENT AND TRADEMARK CASES RULED IN 1985 THAT COLORS DO DESERVE TRADEMARK PROTECTION ALTHOUGH THE OWENSCORNING RULING WASN'T BINDING IN OTHER JUDICIAL CIRCUITS A FEDERAL APPEALS COURT IN ST LOUIS RULED SIMILARLY LAST YEAR IN A CASE INVOLVING BLUE PHOTOSPLICING TAPE BUT AT LEAST TWO APPEALS COURTS IN OTHER REGIONS OF THE COUNTRY HAVE SAID COLORS CAN'T BE TRADEMARKED IF BUSINESSES ARE PLANNING A NATIONAL CAMPAIGN THEY CAN'T REALLY RELY ON TRADEMARK PROTECTION FOR COLORS SAID MICHAEL A EPSTEIN AN ATTORNEY AT THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES THEY HAVE TO RELY ON TRADEDRESS ARGUMENTS WHICH ARE HARDER TO PROVE THE TRADEMARK RULINGS APPLY ONLY IN SITUATIONS IN WHICH COLOR ISN'T AN INTEGRAL PART OF THE PRODUCT IN THE QUALITEX CASE PRESS PADS WERE AT ISSUE THEY PROTECT GARMENTS FROM DIRECTLY TOUCHING HOT PRESSING SURFACES AND DON'T HAVE TO BE ANY PARTICULAR COLOR IN THE PRESSPAD CASE THE COURT NOTED THAT QUALITEX TOUTED THE COLOR OF ITS PRODUCT FOR 30 YEARS ON THE OTHER HAND EXECUTIVES OF THE COMPETING COMPANY ACKNOWLEDGED THAT THEY COPIED THE HUE THE COURT FOUND THAT CUSTOMERS WERE LIKELY TO BE CONFUSED BY THE SIMILARITY PARTICULARLY BECAUSE MANY DON'T SPEAK OR READ ENGLISH WELL ACCORDING TO EVIDENCE BEFORE THE COURT LAURENCE D STRICK A BEVERLY HILLS CALIF ATTORNEY FOR THE COMPETING COMPANY SAID HIS CLIENT JACOBSON PRODUCTS CO IS WELLKNOWN IN THE DRYCLEANING FIELD AND HAD NO NEED TO PIGGYBACK OFF THE REPUTATION OR DESIGN OF ANOTHER COMPANY HE DENIED THAT THE COMPANY HAD ENGAGED IN UNFAIR COMPETITION DONALD G MULACK AN ATTORNEY FOR QUALITEX AT THE CHICAGO OFFICE OF KECK MAHIN & CATE SAID HE DISAGREED WITH PART OF THE COURT'S RULING BECAUSE DRAWING DISTINCTIONS BETWEEN SHADES OF COLORS IS NO MORE DIFFICULT THAN MAKING DISTINCTIONS IN OTHER KINDS OF TRADEMARK CASES RESOLUTION TRUST CORP HAS WON 11 AND LOST 19 OF THE PROFESSIONALLIABILITY CASES THAT HAVE RESULTED IN COURT JUDGMENTS SO FAR ACCORDING TO BANK BAILOUT LITIGATION NEWS THE PROFESSIONALLIABILITY CASES AGAINST ATTORNEYS DIRECTORS ACCOUNTANTS AND OTHERS FOR THEIR ALLEGED ROLES IN THE SAVINGS AND LOAN DEBACLE HAVE GENERATED SOME CONTROVERSY MANY IN THE LEGAL PROFESSION AND ACCOUNTING INDUSTRY CLAIM THAT THEY ARE BEING TARGETED MERELY BECAUSE THEY PROVIDE DEEP POCKETS FOR RECOVERY AND THAT REGULATORS ARE HOLDING THEM TO UNFAIR STANDARDS THE REGULATORS MAINTAIN THAT THEY ARE SUING PROFESSIONALS AND DIRECTORS FOR MISCONDUCT FOR WHICH THEY WERE RESPONSIBLE IN CONNECTION WITH THE PLUNDERING OF S&LS NO CONCLUSIONS CAN NECESSARILY BE DRAWN FROM THE RTC'S WINLOSS RECORD ESPECIALLY SINCE THE HUGE MAJORITY OF PROFESSIONALLIABILITY CLAIMS ARE SETTLED BUT THE WINLOSS TALLY SUGGESTS ONE POSSIBLE PROBLEM FACING THE CASES THAT GO TO COURT THE NEWSLETTER FOUND THAT IN SEVERAL OF THE CASES THE THRIFTBAILOUT AGENCY'S CLAIMS WERE DISMISSED BECAUSE THE SUITS WERE BROUGHT TOO LONG AFTER THE ALLEGED WRONGDOING OCCURRED MOST OF THE RTC'S DEFEATS IN THE PAST SIX MONTHS WERE ON STATUTEOFLIMITATION GROUNDS SAID VICTOR SIMON EDITOR OF THE BURAFF PUBLICATIONS NEWSLETTER IN WASHINGTON THE TALLY IS APPARENTLY THE MOST COMPLETE LIST CURRENTLY AVAILABLE OF CASES IN WHICH THERE HAVE BEEN JUDGMENTS A SPOKESWOMAN FOR THE RTC SAID THAT IT IS TOO EARLY TO EVALUATE THE AGENCY'S WINLOSS RECORD THE CASES BROUGHT BY THE RTC WHICH WAS STARTED IN 1989 HAVE ONLY RECENTLY BEGUN GOING TO TRIAL SHE SAID AND MANY OF THE CASES THAT HAVE BEEN LITIGATED THROUGH TO A JUDGMENT ARE UNDER APPEAL THE WINLOSS COLUMN DOESN'T MEAN A WHOLE LOT AT THIS POINT SHE SAID MOREOVER THE AGENCY HAS SETTLED 246 CASES INCLUDING 114 BEFORE A SUIT WAS FILED FOR A TOTAL RECOVERY OF 663 MILLION THE SPOKESWOMAN SAID SHE SAID THE RTC HAS RECOVERED JUDGMENTS TOTALING 52 MILLION THE RTC SAID MORE THAN 300 PROFESSIONALLIABILITY CASES ARE PENDING CHILD SUPPORT A MAN WHO AGREED TO FATHER A CHILD FOR A FELLOW TEACHER MUST PAY 100000 IN BACK CHILD SUPPORT DESPITE THE WOMAN'S WRITTEN PROMISE NOT TO SEEK MONEY FROM HIM AN APPEALS COURT RULED THE ASSOCIATED PRESS REPORTED THAT THE INDIANA COURT OF APPEALS SAID FRANCINE TODD HAD NO RIGHT TO SIGN AWAY HER DAUGHTER'S RIGHT TO FINANCIAL SUPPORT FROM HER FATHER EDWARD STRAUB MR STRAUB'S LAWYER S FRANK MATTOX RESPONDED THAT THE COUPLE'S AGREEMENT SHOULD BE BINDING THERE IS AN UNQUALIFIED CONSTITUTIONAL RIGHT FOR A SINGLE WOMAN TO HAVE A CHILD IT IS THE CLASSIC MURPHY BROWN SITUATION WADE LAMBERT CONTRIBUTED TO THIS ARTICLE 9401050105 940105 ROHR IS SAID TO AGREE TO PLEAD GUILTY IN 7 MILLION SETTLEMENT OF US CHARGES BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES ROHR INC HAS AGREED TO PLEAD GUILTY TO CRIMINAL CHARGES OF FRAUD AND FALSIFYING TESTS OF MILITARY AIRCRAFT EQUIPMENT AS PART OF AN ANTICIPATED 7 MILLION SETTLEMENT WITH THE US ACCORDING TO LAWENFORCEMENT AND INDUSTRY OFFICIALS UNDER A PLEA AGREEMENT WITH THE U S ATTORNEY'S OFFICE HERE SCHEDULED TO BE ANNOUNCED IN THE NEXT FEW WEEKS ROHR IS EXPECTED TO ADMIT THAT IT IMPROPERLY TESTED CERTAIN PARTS THAT ATTACH THE ENGINES TO THE WINGS OF AIR FORCE C5 TRANSPORT PLANES THE SETTLEMENT ACCORDING TO THESE PERSONS ALSO WILL INCLUDE UNUSUAL PROVISIONS REQUIRING THE FIRM TO PROVIDE EXTENSIVE WARRANTIES FOR THE SUSPECT ENGINE PYLONS ROHR OFFICIALS PREVIOUSLY ACKNOWLEDGED THE CRIMINAL INVESTIGATION AND SAID THEY HOPED IT WOULD BE RESOLVED BUT THE COMPANY DIDN'T INDICATE THE SIZE OF ANY POTENTIAL SETTLEMENT OR THAT IT WAS READY TO ADMIT BREAKING THE LAW BY COOPERATING WITH THE INQUIRY AND ADMITTING GUILT THE COMPANY PROBABLY WILL AVOID ADMINISTRATIVE SANCTIONS BARRING IT FROM RECEIVING ADDITIONAL GOVERNMENT BUSINESS ROHR'S POSITION CONSISTENTLY HAS BEEN THAT THE TESTING IRREGULARITIES AT ITS RIVERSIDE CALIF PLANT INCLUDING ALLEGATIONS THAT CERTAIN MANDATORY TESTS WEREN'T PERFORMED AT ALL DON'T POSE ANY SAFETY HAZARDS FOR AIRCRAFT IN ADDITION TO C5 PARTS FEDERAL INVESTIGATORS HAVE BEEN LOOKING AT PARTS ROHR PROVIDED TO THE NAVY FOR USE ON F14 JET FIGHTERS A TENTATIVE PLEA AGREEMENT ALREADY HAS BEEN DRAFTED AND THE COMPANY WEEKS AGO TOLD FEDERAL INVESTIGATORS IT WAS READY TO ACKNOWLEDGE THE VIOLATIONS ACCORDING TO PERSONS WHO HAVE SEEN THE DOCUMENTS IN ADDITION THE CHULA VISTA CALIF MANUFACTURER OF AIRCRAFT AND ROCKET PARTS IS CLOSE TO WRAPPING UP SEPARATE NEGOTIATIONS WITH THE AIR FORCE TO SETTLE LONGSTANDING ADMINISTRATIVE CLAIMS OVER C5 PARTS AND OTHER MATTERS THAT SETTLEMENT ALSO EXPECTED TO BECOME FINAL SHORTLY COULD COST THE FIRM 10 MILLION OR MORE ACCORDING TO GOVERNMENT AND INDUSTRY OFFICIALS THE ANTICIPATED SETTLEMENTS WITH THE PENTAGON AND THE JUSTICE DEPARTMENT HOWEVER WON'T RESOLVE ALL OF THE COMPANY'S LEGAL HEADACHES LAW ENFORCEMENT OFFICIALS CONFIRMED THAT ROHR IS THE SUBJECT OF AN ONGOING INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION'S ENFORCEMENT DIVISION INTO A 261 MILLION ACCOUNTING CHANGE INVOLVING LONGTERM CONTRACTS THAT THE COMPANY ANNOUNCED IN MAY IN FILINGS WITH THE SEC ROHR HAS SAID THAT IT COMPLIED WITH AN AUGUST SEC REQUEST FOR DOCUMENTS CONCERNING THAT CHANGE TAKEN TOGETHER THE CRIMINAL AND CIVIL PROBES ILLUSTRATE THE EXTENT OF ROHR'S PROBLEMS SHRINKING COMMERCIAL AND DEFENSE ORDERS HAVE FORCED IT TO LAY OFF NEARLY HALF OF ITS WORK FORCE OVER THE PAST THREE YEARS AND SPARKED SPECULATION THAT ROHR WAS A LIKELY TAKEOVER TARGET FOR A LARGER FIRM IN THE CONSOLIDATING AEROSPACE INDUSTRY PROSECUTORS AND COMPANY OFFICIALS DECLINED TO COMMENT ON THE STATUS OF SETTLEMENT DISCUSSIONS PRESIDENT AND CHIEF EXECUTIVE OFFICER ROBERT RAU WHO JOINED THE COMPANY A YEAR AFTER THE GRAND JURY INQUIRY INTO FALSE TESTING BECAME PUBLIC IN EARLY 1992 SAID ONLY THAT ROHR'S MANAGEMENT IS ANXIOUS TO RESOLVE THE ISSUES IN THE CRIMINAL CASE TO PUT THESE THINGS BEHIND US AND GET ON WITH THE FUTURE CONCERNING THE AIR FORCE'S CIVIL CLAIMS MR RAU SAID WE ARE HOPEFUL OF GETTING THE ISSUES RESOLVED BUT HE DECLINED TO PROVIDE ANY DETAILS ROHR PREVIOUSLY SAID THAT IT PUT ASIDE RESERVES FOR BOTH PENDING CIVIL AND CRIMINAL INVESTIGATIONS AND IT TOLD THE SEC IN A FILING AT THE END OF OCTOBER THAT POTENTIAL FINES AND DAMAGES REQUESTED BY THE GOVERNMENT MIGHT BE SUBSTANTIAL THE COMPANY ALSO HAS DECIDED TO MAKE A SERIES OF PERSONNEL MOVES SHORTLY BEFORE THE EXPECTED SUBMISSION OF SETTLEMENT AGREEMENT FOR FEDERAL COURT APPROVAL YESTERDAY ROHR ANNOUNCED THAT ROBERT DALY WHO HAD BEEN EXPECTED TO RETIRE AS SENIOR VICE PRESIDENT AND CHIEF OPERATING OFFICER MARCH 31 WILL GET A NEW JOB IMMEDIATELY AS SENIOR VICE PRESIDENT FOR SPECIAL PROJECTS MR DALY WHO COULDN'T BE REACHED FOR COMMENT WILL REPORT TO MR RAU UNTIL HIS RETIREMENT MR RAU SAID THE SHIFT WAS UNRELATED TO THE INVESTIGATIONS ROHR SAID BUD WETZLER FORMERLY VICE PRESIDENT OF TECHNOLOGY AND QUALITY ASSURANCE WAS PROMOTED TO SENIOR VICE PRESIDENT FOR OPERATIONS AND EFFECTIVELY WOULD TAKE OVER MR DALY'S RESPONSIBILITIES 9401050104 940105 CD YIELDS END MIXED IN THE LATEST WEEK MOST CHANGES SMALL NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MIXED IN THE LATEST WEEK ALTHOUGH MOST CHANGES WERE SLIGHT THE AVERAGE YIELD ON SIXMONTH SMALL DENOMINATION OR SAVINGS CDS AT MAJOR BANKS INCHED UP TO 274 FROM 273 IN THE WEEK ENDED YESTERDAY ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS CREPT TO 446 FROM 445 THE AVERAGE YIELD ON SIXMONTH CDS SOLD BY MAJOR BROKERAGE FIRMS SLIPPED TO 317 FROM 323 BANXQUOTE REPORTED ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD ROSE TO 444 FROM 431 THE SURVEY SAID 9401050103 940105 INLAND STEEL SUBSIDIARY BONDS CHICAGO INLAND STEEL INDUSTRIES INC'S INLAND STEEL CO UNIT SAID IT WILL REDEEM ALL ITS OUTSTANDING SERIES O P AND Q FIRST MORTGAGE BONDS JAN 28 THERE ARE 751 MILLION OF THE BONDS OUTSTANDING THE SERIES O BONDS HAVE AN 8 3/4 COUPON AND ARE DUE JULY 15 1995 THE SERIES P BONDS HAVE AN 8 7/8 COUPON AND ARE DUE APRIL 15 1999 AND THE SERIES Q BONDS HAVE A 9 1/2 COUPON AND ARE DUE SEPT 9401050102 940105 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB NOTHING ABOUT THE CONTROVERSY OVER PRESIDENT CLINTON'S CONNECTIONS TO AN ARKANSAS REALESTATE VENTURE AND A FAILED SAVINGS AND LOAN IS CERTAIN RIGHT NOW EXCEPT THIS THE ISSUE WON'T DIE UNTIL MORE INFORMATION BECOMES PUBLIC ONE WAY OR ANOTHER AND THAT SUGGESTS THE WHITE HOUSE MIGHT WANT TO RETHINK ITS CURRENT APPROACH AT THE MOMENT CLINTON AIDES AND ATTORNEYS ARE FOCUSED ON TURNING THE PRESIDENT'S FILES OVER TO JUSTICE DEPARTMENT INVESTIGATORS AND THE WHITE HOUSE IS ENGAGED IN POLITICALLY TINGED JOUSTING WITH REPUBLICANS OVER WHETHER TO APPOINT A SPECIAL PROSECUTOR BUT IN THE LONG RUN BOTH THE VOTERS' AND THE PRESIDENT'S INTERESTS MIGHT BE BETTER SERVED IF THE WHITE HOUSE SIMPLY FOUND A WAY TO RELEASE THE CLINTONS' RECORDS PUBLICLY IT'S NAIVE TO THINK THAT SUCH A STEP ALONE WOULD END THE CONTROVERSY BUT IT MIGHT BE A START DOWN THAT ROAD AND AT A MINIMUM WOULD ADDRESS HEADON THE SUSPICIONS THAT THE WHITE HOUSE IS MANEUVERING TO HIDE SOMETHING THE WHITE HOUSE ISN'T CONVINCED OF THAT AIDES SEE THEMSELVES AS CAUGHT IN A CLASSIC CATCH22 IN WHICH WHATEVER INFORMATION THEY PROVIDE WON'T BE COMPREHENSIVE ENOUGH TO ANSWER EVERYONE'S QUESTIONS BUT WILL BE SUFFICIENT TO INSPIRE DOZENS OF NEW STORIES AND LAUNCH NEW INVESTIGATIVE FISHING EXPEDITIONS THE WHITE HOUSE IS FUMING THAT IT HASN'T BEEN GIVEN MORE CREDIT FOR AGREEING TO TURN THE PRESIDENT'S PERSONAL FILES OVER TO THE JUSTICE DEPARTMENT BEFORE BEING FORMALLY ASKED AND THEREFORE DOUBTS THAT ITS CRITICS WOULD GIVE IT MUCH CREDIT FOR DOING MORE NOW THAT'S PROBABLY TRUE BUT GIVEN ALL THE JOURNALISTIC AND PROSECUTORIAL DIGGING THAT'S GOING ON RIGHT NOW THE ISSUE IS GOING TO LINGER ANYWAY THE BIGGER DANGER FOR THE WHITE HOUSE MAY WELL BE THAT THE PUBLIC GETS THE SENSE THAT SOMETHING IS BEING HIDDEN AT THIS POINT IT'S A SAFE BET THAT MOST VOTERS HAVE ONLY A FOGGY NOTION WHAT THIS TANGLED CONTROVERSY IS ALL ABOUT IN A NUTSHELL THE ISSUE IS BILL AND HILLARY CLINTON'S INVESTMENT IN WHITEWATER DEVELOPMENT CO A REALESTATE DEVELOPMENT PARTNERSHIP WITH JAMES MCDOUGAL A LONGTIME ARKANSAS ACQUAINTANCE MR MCDOUGAL ALSO WAS THE PROPRIETOR OF MADISON GUARANTY SAVINGS & LOAN THE FAILURE OF WHICH IS BEING INVESTIGATED BY JUSTICE DEPARTMENT ATTORNEYS THE WHITE HOUSE SAYS THAT THE CLINTONS LOST THEIR ENTIRE 69000 INVESTMENT IN WHITEWATER AND IT'S LIKELY THAT THE STORY WOULD HAVE ENDED THERE IF NOT FOR THE FACT THAT VINCENT FOSTER THE CLINTONS' PERSONAL ATTORNEY WHO HANDLED THEIR DEALINGS WITH WHITEWATER SHOT HIMSELF EARLIER THIS YEAR HIS DEATH AND THE FACT THAT HIS OFFICE CONTAINED FILES ON THE WHITEWATER INVESTMENT THAT WERE TURNED OVER TO THE CLINTONS' NEW PERSONAL ATTORNEY HAVE DONE AS MUCH AS ANYTHING TO REKINDLE INTEREST IN WHITEWATER FOR THE CLINTONS THE MOST PERTINENT QUESTIONS ARE WHETHER AND HOW THEY LOST THEIR INVESTMENT AND WHETHER FUNDS FROM THE FAILED SAVINGS AND LOAN WERE IMPROPERLY USED EITHER TO SUSTAIN WHITEWATER OR TO PAY OFF CLINTON CAMPAIGN DEBTS THE CLINTONS' PERSONAL RECORDS AREN'T SUFFICIENT TO ANSWER ALL THOSE QUESTIONS DEFINITIVELY ONLY ACCESS TO WHITEWATER'S AND MADISON GUARANTY'S RECORDS WOULD DO THAT AND THERE IS NO SIGN THE CLINTONS OR ANYBODY ELSE FOR THAT MATTER HAVE ALL THE RECORDS OF WHAT SEEM TO HAVE BEEN TWO LOOSELY RUN ENTERPRISES SO AS WHITE HOUSE AIDES POINT OUT RELEASE OF THE CLINTONS' FILES WOULDN'T LAY TO REST ALL SUSPICIONS AND RELEASING FRAGMENTARY INFORMATION MIGHT SIMPLY RAISE NEW QUESTIONS GENERATE A NEW SET OF CHARGES THAT INFORMATION IS BEING WITHHELD AND FURTHER FUEL A JOURNALISTIC AND POLITICAL FEEDING FRENZY BUT THAT FEEDING FRENZY IS UNDER WAY ANYWAY ABOUT A DOZEN NEWS ORGANIZATIONS HAVE FILED REQUESTS UNDER THE FREEDOM OF INFORMATION ACT FOR COPIES OF STATE FILES ON MADISON GUARANTY LITTLE ROCK IS PEPPERED WITH REPORTERS CHASING THE STORY EVENTUALLY THE INFORMATION IN THE CLINTONS' FILES SEEMS LIKELY TO EMERGE ONE WAY OR THE OTHER AT THIS POINT EVEN SENATE REPUBLICAN LEADER ROBERT DOLE SAYS THERE IS LITTLE EVIDENCE TO SUGGEST THE WHITEWATER SAGA HAS THE MAKINGS OF A MAJOR SCANDAL IRONICALLY ONE REASON THE CLOUDS HAVE DARKENED IS SIMPLY THAT THE CLINTONS THEMSELVES MADE IT APPEAR LAST MONTH THAT THEY WOULD BE UNWILLING TO TURN THEIR FILES OVER TO INVESTIGATORS IF THERE WAS AN ERROR IT WAS THE DEFENSIVENESS OF CLINTON SAYS PRESIDENTIAL HISTORIAN WILLIAM LEUCHTENBURG HE HAS TO UNDERSTAND THAT ONCE HE'S IN THE WHITE HOUSE THERE IS NOTHING PRIVATE ABOUT HIS PAST OR CURRENT FINANCIAL DEALINGS THE WHITE HOUSE KNOWS IT HAS TO DO SOMETHING TO PUT THE CONTROVERSY BEHIND IT UNDER THOSE CONDITIONS LETTING THE SUN SHINE IN SEEMS BOTH THE RIGHT THING AND THE BEST THING FOR THE PRESIDENT TO DO 9401050101 940105 PAYATTHEPUMP' PLAN FOR AUTO INSURANCE SHELVED LOS ANGELES SPONSORS OF AN UNUSUAL PAYATTHEPUMP AUTO AND TRUCK INSURANCE PLAN IN CALIFORNIA SAID THEY HAVE PUT OFF UNTIL 1996 A BALLOT INITIATIVE PREVIOUSLY PLANNED FOR THIS NOVEMBER THE MEASURE BACKED FINANCIALLY BY VETERAN FINANCIAL WRITER AND COMPUTERPROGRAM AUTHOR ANDREW TOBIAS HAS BEEN OPPOSED BY INSURERS AND WAS EXPECTED TO MEET STRONG RESISTANCE FROM OIL REFINERS AND OTHER INDUSTRIAL INTERESTS AS WELL AS TRIAL LAWYERS' GROUPS MR TOBIAS SAID YESTERDAY THAT THE ORGANIZATION BACKING THE PROPOSAL WILL CONTINUE TO RECEIVE HIS FINANCIAL SUPPORT AND WILL BE ENLARGED THE PROBLEM SAID MR TOBIAS WAS INSUFFICIENT TIME TO EDUCATE THE PUBLIC ABOUT THE PROPOSALS BUT OTHER POLITICAL REALITIES SEEM TO HAVE INTERVENED INCLUDING THE LACK OF SUPPORT AMONG TRUCK AND AUTO FLEET OPERATORS WHO HAD BEEN COUNTED ON FOR FINANCIAL CONTRIBUTIONS SOMETIMES A HOT ISSUE IN CALIFORNIA POLITICS THE COST OF AUTO AND TRUCK INSURANCE HAS ATTRACTED REDUCED ATTENTION LATELY IN PART BECAUSE RATES HAVE CHANGED LITTLE IN THE PAST FEW YEARS AFTER A CONTROVERSIAL 1988 INITIATIVE ROLLED BACK SOME RATES AND SHARPENED REGULATORY OVERSIGHT UNDER THE INITIATIVE FILED BY PAYATTHEPUMP SUPPORTERS LAST NOVEMBER CALIFORNIA DRIVERS WOULD HAVE TO PAY A SURCHARGE OF 25 CENTS ON EACH GALLON OF GASOLINE AS THE PRINCIPAL CONTRIBUTION TO A GIANT STATEADMINISTERED AUTO INSURANCE POOL THE MEASURE WOULD ALSO HAVE ELIMINATED DRIVERS' RIGHTS TO SUE ONE ANOTHER EXCEPT IN SPECIAL CIRCUMSTANCES 9401050100 940105 HEARD ON THE STREET SCRAMBLE FOR MACY BONDS MAY NOT PROVE REWARDING BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL SMALL INVESTORS ARE RUSHING TO SNAP UP BONDS OF RH MACY & CO IN THE HOPE THAT FEDERATED DEPARTMENT STORES' INVESTMENT IN THE BANKRUPTCYMIRED RETAILER SIGNALS THE BEGINNING OF A BIDDING WAR BUT ANALYSTS WARN THAT THESE COMELATELY INVESTORS COULD WELL BE DISAPPOINTED NO MATTER WHO ENDS UP CONTROLLING THE NEW YORKBASED RETAILER MORE THAN 50 MILLION OF MACY BONDS HAVE CHANGED HANDS SINCE MONDAY MORNING WHEN NEWS OF FEDERATED'S INVOLVEMENT IN ITS RIVAL BECAME PUBLIC ACCORDING TO TRADERS ON SUNDAY FEDERATED ANNOUNCED THAT IT HAD BOUGHT HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S CLAIM FOR 4493 MILLION ONLY 1093 MILLION OF THAT IN CASH UP FRONT INVESTORS ARE BETTING THAT FEDERATED WILL PROCEED WITH ITS STATED GOAL OF MERGING WITH MACY YET EVEN IF FEDERATED TRIES TO UNSEAT MACY'S MANAGEMENT BONDHOLDERS MAY FAIL TO BENEFIT EVEN IF THERE'S A BIDDING WAR FOR MACY SAYS MAX HOLMES WHO HEADS HIGHYIELD RESEARCH AT SALOMON BROTHERS THERE'S STILL ONLY A LOW PROBABILITY THAT THE BONDS WILL MAKE OUT WELL WITH 43 BILLION IN DEBT MACY SEEMS A NATURAL CANDIDATE TO ATTRACT A CERTAIN AMOUNT OF TAKEOVER SPECULATION IN ITS BONDS IF ONLY BECAUSE THERE'S NO PUBLICLY TRADED STOCK TO PLAY MACY ALSO IS THE LAST OF A FLOCK OF BIG COMPANIES LEAVING BANKRUPTCY COURT THAT HAVE GENERATED MUCHPUBLICIZED SUCCESSES FOR SOME SAVVY PLAYERS IN RECENT YEARS BUT TAKING CONTROL OF A COMPANY ENTANGLED IN BANKRUPTCY PROCEEDINGS ISN'T NEARLY AS SIMPLE AND STRAIGHTFORWARD AS BIDDING FOR SHARES IN THE OPEN MARKET A TAKEOVER BATTLE GENERALLY SPELLS GOOD NEWS FOR STOCKHOLDERS IN PART BECAUSE A RISING TIDE OF COMPETING BIDS LIFTS ALL SHARES EQUALLY BY CONTRAST NOT ALL CREDITORS ARE EQUAL IN A BANKRUPTCYCOURT PROCEEDING SECURED CREDITORS NOTABLY THE BANKS WHO FUNDED MACY'S ILLFACTED LEVERAGED BUYOUT HAVE TO BE MADE WHOLE BEFORE BONDHOLDERS GET ONE RED CENT TO COMPLICATE MATTERS FURTHER THE BANKRUPTCY PROCESS PREVENTS RIVAL BIDDERS FROM WOOING CREDITORS UNTIL THE DEBTOR COMPANY HAS HAD A SHOT AT PRESENTING ITS OWN REORGANIZATION PLAN EVEN THOUGH MACY HAS BEEN OPERATING UNDER THE PROTECTION OF CHAPTER 11 OF THE BANKRUPTCY CODE FOR ALMOST TWO YEARS THE COMPANY'S MANAGEMENT HAS YET TO PRESENT CREDITORS WITH A PROPOSAL FOR EMERGING THAT MEANS EVEN IF FEDERATED WANTED TO MAKE A BID FOR MACY IT COULDN'T RIGHT NOW MACY STILL HAS THE EXCLUSIVE RIGHT TO PROPOSE A PLAN OF REORGANIZATION UNDER BANKRUPTCY LAW THAT RIGHT EXPIRES IN MIDMARCH BUT US BANKRUPTCY COURT JUDGE BURTON LIFLAND VIEWED AS A PRODEBTOR JUDGE COULD EXTEND MACY'S EXCLUSIVITY ONCE FEDERATED IS ALLOWED TO PROPOSE ITS PLAN OF REORGANIZATION IT WILL HAVE TO COMPETE AGAINST ANY PLAN PROPOSED BY MACY'S MANAGEMENT TO WIN CREDITORS' SUPPORT EVEN SOPHISTICATED INVESTORS HAVE TRIPPED UP TRYING TO WREST CONTROL OF BANKRUPTCYCOURT WARDS EII HOLDINGS DEFLECTED CARL ICAHN'S EFFORT TO SEIZE THE LUGGAGE MEN'S WEAR AND BOTTLING COMPANY BEFORE IT EMERGED FROM BANKRUPTCY COURT LAST YEAR THE PRITZKER FAMILY OF CHICAGO WAS LIKEWISE REBUFFED DURING THE BATTLE FOR INTEGRATED RESOURCES MANY OF THE VULTURE INVESTORS WHO PREY ON COMPANY CARCASSES HAVE REFRAINED FROM TAKING BIG STAKES IN MACY'S 13 BILLION OF PUBLICLY TRADED BONDS OUTSTANDING BUT ODYSSEY PARTNERS AND OMEGA ADVISORS EACH HAVE ACCUMULATED ABOUT 40 MILLION OF THE SENIORMOST BOND ISSUE THE 145 SENIOR SUBORDINATED BONDS DUE IN 1998 MUTUAL FUNDS MANAGED BY T ROWE PRICE ASSOCIATES ALSO OWN SOME OF THE 145 BONDS AS WELL AS SOME BANK DEBT BUT NONE OF THESE INVESTORS IS LIKELY TO BECOME A TABLEPOUNDING ACTIVIST THEY HAVEN'T JOINED THE BONDHOLDERS COMMITTEE BECAUSE AS SPECULATORS THEY PREFER TO BE UNFETTERED BY BANKRUPTCY RULES THAT WOULD RESTRICT THEM FROM TRADING WERE THEY TO JOIN THE COMMITTEE MOREOVER THEY ALREADY HAVE SUBSTANTIAL PAPER PROFITS BECAUSE THE BONDS HAVE RISEN SO SIGNIFICANTLY IN PRICE HEAVY BUYING BY INDIVIDUALS YESTERDAY HELPED PUSH UP THE PRICE OF THE 145 BONDS DUE IN 1998 TO 51 1/2 CENTS ON THE DOLLAR FROM 50 CENTS THE DAY BEFORE THAT'S AN INCREASE SINCE LATE FRIDAY OF 105 FOR EVERY 1000 FACE AMOUNT OF BONDS YESTERDAY EVEN THE MORE SPECULATIVE ISSUES ROSE SHARPLY FOR A SECONDSTRAIGHT DAY THE 14 1/2 SUBORDINATED BONDS DUE IN 2001 CLOSED AT 25 1/2 UP 1 1/2 POINTS ON THE DAY WHILE THE ZEROCOUPON BONDS DUE IN 2006 ENDED AT 8 1/2 A HALFPOINT ABOVE MONDAY'S CLOSE I CAN'T TELL YOU HOW OFTEN I AM GETTING CALLS FROM RETAIL INVESTORS MEANING SMALL INVESTORS SAYS DAVID FORD A SENIOR ANALYST WITH DELAWARE BAY CO A BANKRUPTCY RESEARCH AND TRADING BOUTIQUE IN NEW YORK MR FORD LIKE OTHER ANALYSTS FRETS THAT INDIVIDUALS ARE BEING LURED INTO A POTENTIAL MINEFIELD BY THE FAMILIARITY OF THE MACY NAME TO BEGIN WITH THE SKEPTICS SAY MACY'S OPERATIONS WOULD HAVE TO TOP ALREADY OPTIMISTIC GOALS IN ORDER TO JUSTIFY CURRENT BOND PRICES IN THE BUSINESS PLANS IT SHARES WITH CREDITORS MACY'S MANAGEMENT HAS BEEN PROJECTING HEADY 5PLUS GROWTH IN STORES OPEN AT LEAST ONE YEAR THAT WOULD MEAN THE COMPANY COULD GENERATE ABOUT 500 MILLION OF CASH FLOW A MEASURE OF THE COMPANY'S FINANCIAL STRENGTH BY THE YEAR ENDING IN AUGUST 1995 TO PUT THAT IN PERSPECTIVE THE COMPANY PRODUCED ONLY 229 MILLION IN CASH FLOW DURING THE YEAR THAT ENDED IN AUGUST 1993 AND SAMESTORE SALES HAVEN'T BEEN MEETING EXPECTATIONS EVEN IF THE COMPANY TAKES OFF AND CREDITORS AGREE TO VALUE IT AT A GENEROUS SEVEN TIMES THE BULLS' PROJECTED 500 MILLION OF CASH FLOW MACY WOULD BE VALUED AT 35 BILLION BUT MOST OF THE BENEFIT OF A TURNAROUND WOULDN'T FLOW TO BONDHOLDERS THAT'S BECAUSE MACY IS TOPHEAVY WITH SECURED DEBT AND PRIORITY CLAIMS 28 BILLION OR SO OF DEBT THAT HAS TO BE PAID OFF IN FULL BEFORE BONDHOLDERS ARE ENTITLED TO RECEIVE ANYTHING FOR THEIR CLAIMS BY THE TIME MACY IS READY TO EMERGE FROM BANKRUPTCY COURT PROBABLY 12 MONTHS OR MORE FROM NOW THOSE SECURED CREDITORS' CLAIMS WILL TOP 32 BILLION INCLUDING INTEREST FEDERATED CONTROLS THE BIGGEST PIECE OF SECURED DEBT A POOL OF ABOUT 1 BILLION OF FIRST MORTGAGES ON 70 PROPERTIES INCLUDING MACY'S FLAGSHIP STORE IN NEW YORK'S HERALD SQUARE THE NEXT LARGEST PIECE 490 MILLION OF BANK DEBT IS CONTROLLED BY FIDELITY MANAGEMENT & RESEARCH'S DANIEL HARMETZ A FUND MANAGER WHO IS A WHIZ AT BANKRUPTCY INVESTING BOTH BEHEMOTHS HAVE LET IT BE KNOWN THEY WANT TO OWN STOCK IN A REORGANIZED MACY A STANCE THAT IS LIKELY TO REDUCE ANY POTENTIAL STAKE FOR BONDHOLDERS THE BOND PRICES ASSUME THAT THE REORGANIZATION IS HAPPENING SOON AT A FANCY PRICE SAYS HERBERT C LUST III A RESEARCH ANALYST WITH BEAR STEARNS I WOULD BE WORRIED ESPECIALLY IF I OWNED ANY OF THE JUNIOR BONDS THE BIGGEST PIECES ARE BANKRUPTCY COURT PROCEEDING BECAUSE THE COMPANY ISN'T WORTH ENOUGH FOR CONTROL TO PASS TO SUBORDINATED DEBT BONDS IS UNSECURED THE LARGEST HOLDERS OF THE 379 MILLION OF 145 SENIOR SUBORDINATED BONDS INCLUDE PAY THE SECURED CREDITORS OFF IN FULL SO THAT THE UNSECURED CREDITORS WOULD RECEIVE THE BULK OF NEW SHARES OF A REORGANIZED COMPANY 9401050099 940105 BUSINESS BRIEFS FREEPORTMCMORAN RESOURCE PARTNERS LP A UNIT OF FREEPORTMCMORAN INC SOLD A FLORIDA TRACT TO TAMPA ELECTRIC CO A UNIT OF TECO ENERGY INC FOR 129 MILLION COSMETIC CENTER INC SAVAGE MD SIGNED LEASES FOR NINE NEW STORES AND ANNOUNCED ITS EXPANSION INTO PHILADELPHIA AND SOUTH NEW JERSEY AREAS BEDFORD PROPERTY INVESTORS INC CONCLUDED AN AGREEMENT WITH BANKAMERICA CORP'S BANK OF AMERICA UNIT FOR A 20 MILLION REVOLVING LINE OF CREDIT FOR REALESTATE LOANS HEALTHVEST COMPLETED ITS MERGER WITH HEALTHCARE INTERNATIONAL INC THE COMBINED COMPANY IS NOW CALLED HEALTHCARE AMERICA INC REYNOLDS & REYNOLDS CO COMPLETED ITS ACQUISITION OF LAW PRINTING CO OXNARD CALIF TERMS WEREN'T DISCLOSED 9401050098 940105 U S WEST SALE TO SHORENSTEIN ENGLEWOOD COLO U S WEST INC SAID IT COMPLETED A SALE OF FOUR COMMERCIAL REALESTATE PROJECTS TO SHORENSTEIN CO SAN FRANCISCO FOR ABOUT 280 MILLION THE FOUR PROJECTS WITH ABOUT 19 MILLION COMBINED SQUARE FEET WERE SOLD BY U S WEST REAL ESTATE INC A UNIT FORMED IN 1990 WHEN THE REGIONAL BELL PHONE COMPANY DECIDED TO LEAVE THE COMMERCIAL REALESTATE DEVELOPMENT BUSINESS 9401050097 940105 INSIDE TRACK CEO SENDS STRONG SIGNAL ON LDDS STOCK BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL BERNARD EBBERS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE NATION'S FOURTHLARGEST PROVIDER OF LONGDISTANCE TELEPHONE SERVICE LIKES HIS COMPANY'S STOCK IN A BIG WAY IN MIDNOVEMBER HE PAID 336 MILLION OR ABOUT 49 A SHARE TO ACQUIRE 689000 SHARES OF LDDS COMMUNICATIONS INC OF JACKSON MISS AND THAT WAS AFTER HE SNAPPED UP 171000 LDDS SHARES FOR 79 MILLION OR ABOUT 46 A SHARE IN OCTOBER ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS THE LDDS EXECUTIVE WAS RELUCTANT TO COMMENT ABOUT HIS BUYING SPREE SAYING ONLY THAT PEOPLE DON'T BUY STOCK TO INTENTIONALLY LOSE MONEY ON TUESDAY THE STOCK CLOSED AT 50 UP 1 ON THE NASDAQ STOCK MARKET MR EBBERS WHOSE RECENT PURCHASES ENLARGED HIS LDDS STAKE FROM 5 TO 65 IS STEPPING UP TO THE PLATE AMID TALK THAT THE FASTGROWING LONGDISTANCE PROVIDER WITH SALES OF 16 BILLION COULD BE A HOT TAKEOVER CANDIDATE THIS YEAR LDDS LONG OPERATING IN THE SHADOWS OF INDUSTRY STALWARTS AMERICAN TELEPHONE & TELEGRAPH CO MCI COMMUNICATIONS CORP AND SPRINT CORP HAS BEEN AGGRESSIVELY ACQUIRING SMALLER CARRIERS NATIONWIDE AND LATE LAST YEAR COMPLETED A THREEWAY MERGER WITH METROMEDIA CO'S LONGDISTANCE UNIT AND RESURGENS COMMUNICATIONS CORP JOHN KLUGE BILLIONAIRE OWNER AND CHAIRMAN OF CLOSELY HELD METROMEDIA IS LDDS'S CHAIRMAN WITH METROMEDIA HOLDING 19 OF THE NEW COMPANY WHICH NOW TRADES UNDER THE SYMBOL LDDS ON NASDAQ INSTEAD OF THE PREVIOUS LDDSA MR KLUGE WAS TRAVELING ABROAD AND WAS UNAVAILABLE FOR COMMENT THE NEW COMPANY'S EXTRA REACH PARTICULARLY IN THE NORTHEAST AND THE WEST WHERE METROMEDIA AND RESURGENS RESPECTIVELY HAVE BEEN STRONG HAS MADE THE COMPANY AN ATTRACTIVE HYBRID BETWEEN FIRSTTIER AND SECONDTIER LONGDISTANCE COMPANIES SAYS RICHARD KLUGMAN AN ANALYST WITH MERRILL LYNCH IN NEW YORK THERE ARE A NUMBER OF POTENTIAL ACQUIRERS YOU'D HAVE TO LOOK AT ESPECIALLY AMONG THE BIG THREE' HE SAYS AN ACQUISITION OF LDDS WHICH NOW COMMANDS ALMOST 3 OF THE DOMESTIC LONGDISTANCE MARKET WOULD BE A VERY QUICK AND EASY WAY FOR AT&T MCI OR SPRINT TO INCREASE MARKET SHARE A COUPLE OF POINTS HE SAYS ADDING AS ECONOMIES OF SCALE BECOME MORE IMPORTANT THAT COULD MAKE A DIFFERENCE YESTERDAY MCI ANNOUNCED PLANS TO DOUBLE ITS CAPITAL EXPENDITURE IN A MOVE TO CIRCUMVENT REGIONAL BELL OPERATIONS AND TO LOWER ITS ACCESS CHARGES OR THE PART OF THE LONGDISTANCE PHONE CALL CARRIED BY THE LOCAL PHONE COMPANY ACCESS CHARGES TYPICALLY ACCOUNT FOR 40 TO 50 OF A LONGDISTANCE COMPANY'S COST OF SALES OTHER POTENTIAL ACQUIRERS BEING MENTIONED ARE CABLETELEVISION COMPANIES AND THE REGIONAL BELL COMPANIES BUT THE LATTER ARE FOR NOW BEING KEPT AT ARM'S LENGTH FROM THE LONGDISTANCE SECTOR BY THE ATTBREAKUP AGREEMENT OF THE EARLY 1980S EVENTUALLY THE REGIONAL BELLS WILL BE ALLOWED TO GET INTO THE LONGDISTANCE BUSINESS SAYS MR KLUGMAN THERE'S BEEN A LOT OF SPECULATION THAT THE CHANGE IN LEGISLATION WILL COME THIS YEAR BUT I THINK IT COULD BE A FEW YEARS OUT IN ANY CASE WHEN THE BABY BELLS DO ENTER THE MARKET I DON'T THINK THEY'LL POSE A THREAT TO A COMPANY LIKE LDDS I THINK THERE'S AN OPPORTUNITY FOR PARTNERSHIP JACK GRUBMAN AN INDUSTRY ANALYST FOR PAINE WEBBER SAYS A FOREIGNBASED TELEPHONE GIANT MIGHT BE MORE APT TO SEEK AN ALLIANCE WITH LDDS POINTING OUT THAT BRITISH TELECOM PLC ACQUIRED A 20 STAKE IN MCI FOR 43 BILLION LAST YEAR A FOREIGN TELEPHONE COMPANY WANTING A US PRESENCE MIGHT SEE LDDS AS A WAY OF OBTAINING A NATIONWIDE SWITCHING NETWORK HE SAYS LDDS PROVIDES DOMESTIC LONGDISTANCE SERVICE TO ALL 50 STATES AND OFFERS OVERSEAS SERVICE TO 250 COUNTRIES FOR NOW ANALYSTS EXPECT THE COMPANY TO KEEP GROWING RAPIDLY THROUGH INTERNAL SOURCES AND EXTERNAL ACQUISITIONS IN DECEMBER 1992 LDDS DOUBLED ITS SIZE BY MERGING WITH ADVANCED TELECOMMUNICATIONS CORP AN ATLANTA LONGDISTANCE CARRIER IN A 720 MILLION STOCK SWAP OUR EXPECTATION IS THAT THE COMPANY WILL CONTINUE TO GROW LARGELY THROUGH ACQUISITIONS SUPPORTED BY A 12 TO 14 INTERNAL GROWTH RATE SAYS BOB BOLEN AN ANALYST WITH JC BRADFORD A NASHVILLE TENN BROKERAGE HOUSE HE SAYS THE STOCK CAN CLIMB TO BETWEEN 55 AND 60 A SHARE A YEAR FROM NOW ADDING THAT TUESDAY'S ANNOUNCEMENT BY MCI WAS GENERALLY BULLISH FOR OTHER LONGDISTANCE CARRIERS LIKE LDDS IT'S GOING TO HELP PUSH ACCESS CHARGES DOWN HE SAYS MR EBBERS ALSO LIKES WHAT HE HEARD YESTERDAY FROM MCI WHICH HAS ROUGHLY 10 TIMES THE REVENUE OF LDDS AND COULD OFFER THE SMALLER PLAYER LOWCOST LOCAL CONNECTIONS IN THE FUTURE ALL OF US IN THIS BUSINESS ARE INTERESTED IN FINDING WAYS OF LOWERING OUR ACCESS COSTS HE SAYS ADDING THAT AT LDDS ACCESS COSTS COMPRISE AS MUCH AS 40 OF TOTAL OPERATING COSTS ALL MEANS OF REDUCING SUCH COSTS WILL BE EXPLORED WE'RE ALWAYS IN THE BUSINESS OF INVESTIGATING ACQUISITIONS OR MERGERS THAT WILL CONTRIBUTE TO IMPROVED EARNINGS OF THE COMPANY HE SAYS THE COMPANY REPORTED RECORD NET INCOME FOR THE THIRD QUARTER UP 72 TO 50 CENTS A SHARE MR KLUGMAN THE MERRILL ANALYST SAID THE THIRDQUARTER PERSHARE NET WAS TWO CENTS BETTER THAN HIS ESTIMATE FOR THE FOURTH QUARTER HE'S LOOKING FOR 45 CENTS A SHARE BUT I WOULDN'T BE SURPRISED IF IT TURNS OUT TO BE A LITTLE HIGHER I'M RECOMMENDING THE STOCK AT ITS CURRENT PRICE AS A NOTE OF CAUTION HE POINTS OUT THAT THERE COULD BE SOME LATENT GROWING PAINS THAT COULD CROP UP AT LDDS FOLLOWING THE RECENT THREEWAY MERGER THERE MAY BE SOME UNFORESEEN COSTS STEMMING FROM THE MERGER SOME INVESTORS MAY WANT TO WAIT A YEAR TO SEE IF THE MERGER WORKS OUT AS WELL AS THE COMPANY THINKS IT WILL BUT I THINK WE'LL SEE THE BENEFITS OF THE MERGER WITH THE COMPLETION OF ALL THE LOGISTICS INVOLVED THIS YEAR 9401050096 940105 NOTABLE & QUOTABLE MARVIN OLASKY DISCUSSING THE FAILURE OF ANTIPOVERTY PROGRAMS IN HIS 1992 BOOK THE TRAGEDY OF AMERICAN COMPASSION REGNERY GATEWAY THE MAJOR FLAW OF THE MODERN WELFARE STATE IS NOT THAT IT IS EXTRAVAGANT WITH MONEY BUT THAT IT IS STINGY WITH THE HELP THAT ONLY A PERSON CAN GIVE LOVE TIME CARE AND HOPE MOST OF OUR 20TH CENTURY SCHEMES BASED ON SOMEONE ELSE TAKING ACTION ARE PROVEN FAILURES IT'S TIME TO LEARN FROM THE WARM HEARTS AND HARD HEADS OF EARLIER CHARITABLE EFFORTS 9401050094 940105 REVIEW & OUTLOOK EDITORIAL TREADING SOFTLY AT NATO PRESIDENT CLINTON'S VENTURE INTO EUROPEAN DIPLOMACY NEXT WEEK BEGINS WITH A NATO SUMMIT IN BRUSSELS AND PROGRESSES TO A SITDOWN WITH BORIS YELTSIN IN MOSCOW THAT SEQUENCE SUGGESTS HOW THIS PRESIDENT VIEWS THE US ROLE IN EUROPE AT THE NATO SUMMIT MR CLINTON WILL PROMOTE PARTNERSHIP FOR PEACE A US PLAN FOR ESSENTIALLY DODGING THE ISSUE OF GRANTING NATO MEMBERSHIP TO THE FORMER SOVIET SATELLITES OF MIDDLE EUROPE THE PARTNERSHIP WILL LET THEM WORK WITH NATO BUT WILL DENY THEM THE SECURITY GUARANTEE OF ARTICLE 5 OF THE NORTH ATLANTIC TREATY THIS WILL ALLOW MR CLINTON TO TELL MR YELTSIN THAT NATO DOESN'T THREATEN RUSSIA'S SECURITY THE PRESIDENT'S EUROPEAN POLICY IS RUSSIACENTERED WITH THE GOAL OF PROMOTING PEACEFUL DEMOCRATIC DEVELOPMENT IN RUSSIA NATO EXPANSION IS NOT TO BE ALLOWED TO DISTURB THIS DELICATE TASK NO NEW POLITICAL REALIGNMENT IS SHAPING UP IN BRUSSELS WITH RUSSIA AS THE INTENDED ODD MAN OUT THERE IS SOME MERIT TO THIS APPROACH EUROPE'S HOPES FOR PEACE AND SECURITY SURELY WILL IMPROVE IF DEMOCRACY TAKES ROOT IN RUSSIA ASIA ALSO WOULD BE GLAD TO SEE MR YELTSIN BUILD A NONIMPERIALIST RUSSIA SO WOULD WE ALL MR CLINTON BELIEVES HE WILL BE BETTER ABLE TO DO THIS IF RUSSIAN MILITARISTS NATIONALISTS AND REVANCHISTS CAN'T CLAIM THAT THE WEST THREATENS RUSSIA BUT THIS LINE OF ARGUMENT NEEDS TO BE EXTENDED EUROPE'S A BIG PLACE RUSSIA IS BUT ONE OF SOME 40 SIGNIFICANT NATIONS THAT CAN CALL THEMSELVES EUROPEAN THE FORMER SOVIET SATELLITES HAVE TRULY LEGITIMATE SECURITY CONCERNS GIVEN THE FRAGILITY OF THEIR OWN DEMOCRACIES AND THE POTENTIAL IRREDENTIST CLAIMS OF THEIR NEIGHBORS THE INDEPENDENT BALTIC STATES HAVE PARTICULAR REASONS TO WORRY ABOUT RUSSIA'S PLANS FOR THEM ANY PURELY RUSSOCENTRIC US POLICY WILL LACK IMPORTANT DEPTH AND SCOPE IN MOSCOW PRESIDENT CLINTON SHOULD KICK BACK ANY NOTION THAT NATO IS A THREATENING ALLIANCE ITS ROLE IS DEFENSIVE THAT IT'S CAPABLE OF LITTLE ELSE WAS MADE PLAIN ENOUGH BY ITS INABILITY TO ACT IN A UNITED WAY TO IMPLEMENT UN PEACEKEEPING IN THE FORMER YUGOSLAVIA NOR SHOULD NATO'S IMPORTANCE BE SEEN SOLELY AS GUARDING AGAINST A DIMINISHED EXTERNAL THREAT IT CREATED AND SUSTAINED A COOPERATIVE AND HARMONIOUS RELATIONSHIP AMONG THE MILITARY ORGANIZATIONS OF 16 NATIONS THAT INCLUDES FRANCE EVEN THOUGH ITS FORCES ARE OUTSIDE THE NATO COMMAND THIS HAS CONTRIBUTED ENORMOUSLY TO THE POSTWAR DEVELOPMENT OF A PEACEFUL DEMOCRATIC WESTERN EUROPE EVEN TURKEY AND GREECE DESPITE MUTUAL ANIMOSITY HAVEN'T BROKEN FROM THIS ARRANGEMENT THE STRONGEST POINT THAT THE FORMER SATELLITES MAKE IS THAT TRUE MEMBERSHIP IN THIS COMMUNITY WILL ENSURE THEIR OWN DEVELOPMENT ALONG THE SAME LINES TENSIONS IN HUNGARY OVER THE TREATMENT OF ETHNIC HUNGARIANS IN ROMANIA FOR EXAMPLE MIGHT BE LESS LIKELY TO FLARE INTO WAR IF BOTH ARE PART OF THE SAME SECURITY ARRANGEMENT IT WILL BE ARGUED IN A DISTURBING ECHO OF NEVILLE CHAMBERLAIN THAT THESE ARE SMALL UNIMPORTANT STATES IN FACT SOME 100 MILLION PEOPLE LIVE IN THE FORMER SATELLITE NATIONS RUSSIA STRETCHING OVER A VAST TERRITORY HAS ONLY 50 MILLION MORE THE NONRUSSIAN EUROPEAN REPUBLICS OF THE FORMER SOVIET UNION WOULD ADD ANOTHER 100 MILLION SOULS THE 1991 ROME SUMMIT ORDAINED THE NORTH ATLANTIC COOPERATION COUNCIL TO STRENGTHEN TIES WITH CENTRAL AND EASTERN EUROPE NOW EAST EUROPEAN MILITARY AND DIPLOMATIC OFFICIALS REGULARLY WALK THE HALLS OF NATO'S HEADQUARTERS PARTAKE IN OFFICIAL DISCUSSIONS AND ENJOY NATO'S HELP ON DEFENSE CONVERSION AND OTHER ISSUES PARTNERSHIP FOR PEACE MIGHT EXPAND THAT INITIATIVE BUT THOUGH THE PARTNERSHIP WILL OSTENSIBLY INVOLVE CONCRETE MEASURES TO PREPARE EASTERN EUROPEAN AND FORMER SOVIET REPUBLICS FOR MEMBERSHIP IT STOPS SHORT OF SETTING CRITERIA FOR MEMBERSHIP A TIMETABLE OR EVEN SAYING THAT ONE DAY SOME LUCKY COUNTRY'S NUMBER WILL BE CALLED TO BE SURE INKONPAPER TREATY GUARANTEES MAY NOT BE NECESSARY FOR NATO TO ACT AS A STABILIZING FORCE IN EASTERN EUROPE BUT IT ISN'T CLEAR THAT THE PRESENT MEASURES ARE SUFFICIENT FOR THAT PURPOSE EITHER ALL OF WHICH MEANS THAT NEXT WEEK'S MEETING SHOULDN'T BE THE END OF THIS DEBATE SOME HIGH OFFICIALS OF NATO ARGUE PERSUASIVELY THAT THE ALLIANCE WILL BE IN DANGER OF WITHERING IF IT DOESN'T UNDERTAKE NEW TASKS FOR STABILIZING EUROPE BUT ITS MILITARY CAPABILITIES ARE DIMINISHING RAPIDLY UNDER DISARMAMENT PRESSURES FROM POLITICIANS WITH OTHER GOALS IN MIND AND FROM ITS OWN CONFUSIONS ABOUT ITS MISSION TODAY IT IS INDEED AN IMPORTANT GOAL FOR THE WEST TO BRING RUSSIA INTO THE COMMUNITY OF NATIONS BUT MOST LIKELY IT IS FEAR OF RUSSIAN REVANCHISM THAT WILL DO MORE TO ENCOURAGE THAN TO DISCOURAGE THAT PROCESS WE HOPE MR CLINTON AND THE OTHER NATO HEADS OF STATE WILL KEEP THAT IN MIND NEXT WEEK 9401050093 940105 CHRYSLER STOCK ROSE 47 ON LAUNCH OF NEW SEDAN DETROIT CHRYSLER CORP STOCK ROSE 47 AFTER THE AUTO MAKER YESTERDAY UNVEILED A NEW FAMILY SEDAN THAT WILL CHALLENGE THE HONDA ACCORD AND TOYOTA CAMRY AND THERE ARE MORE NEW PRODUCTS ON THE WAY ROBERT J EATON CHRYSLER'S CHAIRMAN SAID THE COMPANY WILL SPEND 199 BILLION ON NEWPRODUCT DEVELOPMENT IN THE NEXT FIVE YEARS UP FROM 173 BILLION THE COMPANY HAD PLANNED TO SPEND A YEAR AGO IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CHRYSLER SHARES ROSE 250 TO CLOSE AT 56 A SHARE THE AUTO MAKER ALSO REPORTED STRONG SALES FOR 1993 SETTING A RECORD OF 145 FOR ITS SHARE OF THE US MARKET THE NEW SEDAN WHICH WILL HIT SHOWROOMS THIS FALL AS THE CHRYSLER CIRRUS AND THE DODGE STRATUS WILL SELL FOR ROUGHLY 13000 TO 18000 ANALYSTS SAID CHRYSLER HASN'T PRICED ITS NEW SEDAN BUT SAID IT WILL UNDERCUT ITS JAPANESE COMPETITORS BY ABOUT 2000 JAPANESE AUTO EXECUTIVES AND ANALYSTS PREDICTED THE CIRRUS AND STRATUS WILL BE FORMIDABLE COMPETITORS 9401050092 940105 TECHNOLOGY & HEALTH SUN HEALTHCARE TO BUY MEDIPLEX IN BID TO OFFER MORE COMPREHENSIVE CARE BY ROBERT TOMSHO STAFF REPORTER OF THE WALL STREET JOURNAL ALBUQUERQUE NM JOINING THE GROWING RANKS OF NURSINGHOME OPERATORS SCRAMBLING TO OFFER MORE COMPLEX AND MORE PROFITABLE LEVELS OF HEALTH CARE SUN HEALTHCARE GROUP INC SAID IT HAD AGREED TO ACQUIRE THE MEDIPLEX GROUP INC FOR ABOUT 312 MILLION IN CASH AND STOCK AMID BROADBASED CONSOLIDATION IN THE HEALTHCARE INDUSTRY THE PROPOSED ACQUISITION IS AN EXAMPLE OF HOW PROVIDERS ARE POSITIONING THEMSELVES TO OFFER THE COMPREHENSIVE DELIVERY SYSTEMS ENVISIONED BY THE CLINTON ADMINISTRATION'S PROPOSED REFORMS THIS URGE TO MERGE CUTS ACROSS ALL SEGMENTS OF HEALTH CARE SAID JOHN HINDELONG AN INDUSTRY ANALYST WITH DONALDSON LUFKIN & JENRETTE THEY'VE GOT TO STREAMLINE OPERATIONS UPGRADE THEIR SERVICES ELIMINATE OR REDUCE OVERHEAD AND CREATE A MORE EFFICIENT HEALTHCARE DELIVERY SYSTEM IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MEDIPLEX SHARES CLOSED AT 30125 A SHARE UP 1125 CENTS WHILE SUN STOCK FELL TO 1650 A SHARE DOWN 75 CENTS PRESSURES WITH PROJECTED 1993 REVENUE OF NEARLY 400 MILLION MEDIPLEX IN WELLESLEY MASS IS A MAJOR PROVIDER OF SOCALLED SUBACUTE CARE WHICH INVOLVES THE TREATMENT OF PATIENTS THAT ARE STILL TOO SICK TO GO HOME BUT NO LONGER IN NEED OF THE INTENSIVE AND MORE EXPENSIVE SERVICES OF AN ACUTECARE HOSPITAL AS MANAGED CARE SYSTEMS AND THIRDPARTY PAYORS PRESSURE HOSPITALS TO RELEASE PATIENTS SOONER A GROWING NUMBER OF LONGTERM CARE PROVIDERS HAVE MOVED TO UPGRADE THEIR FACILITIES OR ACQUIRE EXISTING SUBACUTE CARE PROVIDERS CAPABLE OF CARING FOR PATIENTS DEPENDENT UPON VENTILATORS UNDERGOING CHEMOTHERAPY OR RECOVERING FROM BURNS OR SURGERY SUBACUTECARE FACILITIES GENERALLY CHARGE 600 TO 700 A DAY FOR THEIR SERVICES ROUGHLY 50 OF THE COST OF AN ACUTECARE HOSPITAL BED BUT UPWARD OF FOUR TIMES THE REVENUE BROUGHT IN FOR TRADITIONAL NURSINGHOME SERVICES SUN CURRENTLY OPERATES 69 LONGTERM CARE FACILITIES IN 10 STATES AFTER THE ACQUISITION IT WOULD HAVE 110 HEALTHCARE FACILITIES WITH 13073 BEDS IN 20 STATES INCLUDING A STRONG PRESENCE IN THE NORTHEAST WHERE THE TWO COMPANIES' SYSTEMS OVERLAP THIS REALLY BRINGS THEM INTO THE FOREFRONT OF THE SUBACUTE CARE INDUSTRY SAID TODD RICHTER AN INDUSTRY ANALYST WITH DEAN WITTER REYNOLDS UNDER THE TERMS OF THE PROPOSED ACQUISITION MEDIPLEX SHAREHOLDERS WOULD RECEIVE 11 IN CASH AND 128 SHARES OF SUN STOCK FOR EACH MEDIPLEX SHARE THAT THEY HOLD MEDIPLEX CURRENTLY HAS ABOUT 97 MILLION COMMON SHARES OUTSTANDING BASED ON THE 1650 CLOSING PRICE OF SUN SHARES THE TRANSACTION HAS AN ESTIMATED VALUE OF 312 MILLION ALTHOUGH THE ACQUISITION REMAINS SUBJECT TO SUN ACQUIRING NECESSARY FINANCING AND THE SIGNING OF A DEFINITIVE MERGER AGREEMENT AS WELL AS REGULATORY AND SHAREHOLDER APPROVAL THE COMPANIES SAID THEY HOPED TO COMPLETE THE TRANSACTION DURING THE SECOND QUARTER OF THIS YEAR FOR THE THIRD QUARTER ENDED SEPT 30 SUN REPORTED NET INCOME OF 31 MILLION OR 23 CENTS A SHARE COMPARED WITH A YEAREARLIER PRO FORMA NET INCOME OF 778000 OR NINE CENTS A SHARE REVENUE ROSE 56 TO 504 MILLION FROM 324 MILLION THE COMPANY COMPLETED ITS INITIAL PUBLIC OFFERING IN JULY FOR THE THIRD QUARTER ENDED SEPT 30 MEDIPLEX REPORTED NET INCOME OF 4 MILLION OR 43 CENTS A SHARE UP 54 FROM 26 MILLION OR 32 CENTS A SHARE A YEAREARLIER REVENUE ROSE 54 TO 1034 MILLION FROM 671 MILLION THE RESULTS REFLECTED A 134 INCREASE IN AVERAGE SHARES OUTSTANDING 9401050091 940105 DISTRIBUTION TO EMPLOYEES OF 115 MILLION IS PLANNED SAN FRANCISCO CHEVRON CORP CLAIMING THAT IT LEADS MAJOR US OIL COMPANIES IN TOTAL RETURN TO STOCKHOLDERS ANNOUNCED THAT IT WILL PASS OUT A TOTAL OF 115 MILLION IN ONETIME CASH BONUSES TO ALMOST ALL OF ITS EMPLOYEES WORLDWIDE THE PAYMENTS AMOUNTING TO 5 OF BASE PAY FOR 42500 FULLTIME AND PARTTIME EMPLOYEES REFLECT CHEVRON'S SUCCESS IN MOVING TO THE FOREFRONT OF THE COMPETITION BY AMONG OTHER THINGS REDUCING OPERATING EXPENSES ABOUT 12 BILLION ON AN ANNUALIZED BASIS ACCORDING TO CHAIRMAN KENNETH DERR EMPLOYEES ALSO WILL RECEIVE A COMMEMORATIVE WATCH EXCLUDED FROM THE BONUSES ARE ABOUT 500 SENIOR MANAGERS WHO PARTICIPATE IN A MANAGEMENTINCENTIVE PROGRAM CHEVRON SAID IT SET ASIDE A FOURTHQUARTER CHARGE OF 70 MILLION FOR THE BONUS PAYMENTS THROUGH THE FIRST NINE MONTHS OF LAST YEAR CHEVRON REPORTED OPERATING EARNINGS OF 163 BILLION EXCLUDING SPECIAL ITEMS OR CHARGES IT REPORTED NET INCOME OF 971 MILLION OR 298 A SHARE FOR THE PERIOD FOR ALL OF 1992 CHEVRON REPORTED NET OF 157 BILLION OR 463 CENTS A SHARE AFTER ACCOUNTING CHANGES IN A RECENT INTERVIEW MR DERR SAID THAT BASED ON FASTERTHANANTICIPATED COST REDUCTIONS HE FEELS VERY VERY COMFORTABLE THAT US EXPLORATION AND PRODUCTION WILL CONTINUE TO PROVIDE IN EXCESS OF 1 BILLION CASH FLOW ANNUALLY MUCH OF IT NEEDED TO FUEL THE COMPANY'S INCREASED EMPHASIS ON EXPLORATION AND REFINING OPERATIONS OVERSEAS 9401050090 940105 WHO'S NEWS SARA LEE'S BOONSTRA QUITS AS PRESIDENT OPERATIONS CHIEF AFTER JUST SIX MONTHS BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL SARA LEE CORP ANNOUNCED THE RETIREMENT OF ITS PRESIDENT AND CHIEF OPERATING OFFICER AFTER ONLY SIX MONTHS ON THE JOB THE COMPANY SAID CORNELIS BOONSTRA 55 YEARS OLD QUIT AS OF DEC 31 RELINQUISHING HIS SEAT ON THE BOARD AS WELL ALTHOUGH HE IS EXPECTED TO BECOME A MEMBER OF A EUROPEAN BOARD OF SUPERVISORS THAT OVERSEES ABOUT HALF OF SARA LEE'S 146 BILLION PORTFOLIO OF WORLDWIDE BUSINESSES OFFICIALLY SARA LEE PORTRAYED MR BOONSTRA'S UNEXPECTED DEPARTURE AS HIS DECISION ALONE FOR WHAT IT CALLED PERSONAL REASONS BUT THE COMPANY DECLINED TO ELABORATE NEITHER MR BOONSTRA NOR COMPANY CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN H BRYAN COULD BE REACHED FOR COMMENT MR BRYAN WAS SAID TO BE RETURNING FROM EUROPE DURING HIS BRIEF TENURE AS PRESIDENT OF THE CHICAGOBASED APPAREL FOOD AND PERSONALPRODUCTS CONCERN MR BOONSTRA GAINED A REPUTATION AS A NONONSENSE COSTCUTTER LIKED BY WALL STREET BUT WHO RUFFLED OTHER SENIOR OFFICERS SEVERAL OF WHOM LEFT THE COMPANY AMONG THOSE DEPARTING WAS THE HEAD OF SARA LEE'S BIG PERSONAL PRODUCTS BUSINESS IN EUROPE M WELDON SCHENCK SECURITIES ANALYSTS EXPRESSED SHOCK ON LEARNING OF MR BOONSTRA'S DEPARTURE I WOULD LIKE TO HAVE SEEN HIM STAY HE WAS A LEAN AND MEAN KIND OF PERSON WHO WOULD HAVE DONE GOOD THINGS FOR THE COMPANY SAID BONNIE WITTENBURG OF DAIN BOSWORTH INC MINNEAPOLIS JOHN MCMILLIN FOOD ANALYST AT PRUDENTIAL SECURITIES INC IN NEW YORK SAID THE COMPANY HAS GREAT DEPTH OF MANAGEMENT WHICH KIND OF MINIMIZES THIS LOSS BUT HE NOTED THAT SARA LEE'S 6 BILLION APPAREL BUSINESS WHICH HE CALLED THE COMPANY'S ENGINE OF GROWTH AND WHICH MR BOONSTRA HAD RECENTLY REORGANIZED HAD BEEN PERFORMING BELOW EXPECTATIONS THE ANALYST SAID HE NOW EXPECTS THE GROUP CALLED PERSONAL PRODUCTS TO REPORT LOWER EARNINGS FOR THE CURRENT FISCAL SECOND QUARTER WHICH INCLUDES THE CHRISTMAS SHOPPING SEASON SHARES OF SARA LEE CLOSED YESTERDAY AT 24875 DOWN 125 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING MR BOONSTRA WHO IS DUTCH SPENT NEARLY ALL HIS 20YEAR CAREER WITH SARA LEE IN EUROPE OVERSEEING ITS COFFEE AND GROCERY BUSINESSES AS WELL AS FERRETING OUT ACQUISITIONS IN VARIOUS COUNTRIES A MEMBER OF SARA LEE'S BOARD SINCE 1988 MR BOONSTRA LAST JULY 1 SUCCEEDED AS PRESIDENT PAUL FULTON THE MAN BEHIND THE COMPANY'S L'EGGS PANTYHOSE LINE WHO LEFT TO BECOME DEAN OF THE UNIVERSITY OF NORTH CAROLINA'S BUSINESS SCHOOL ALTHOUGH HIS NEW ASSIGNMENT REQUIRED MR BOONSTRA TO RELOCATE TO CHICAGO HIS WIFE REMAINED AT THEIR HOME IN THE BAHAMAS MR BOONSTRA'S RESPONSIBILITIES WILL BE ASSUMED BY TWO EXECUTIVES C STEVEN MCMILLAN 47 AN EXECUTIVE VICE PRESIDENT WILL OVERSEE PACKAGED MEATS AND BAKERY COFFEE AND GROCERY AND HOUSEHOLD AND PERSONAL CARE LINES DONALD J FRANCESCHINI 57 A SENIOR VICE PRESIDENT WILL MANAGE THE COMPANY'S PERSONAL PRODUCTS OPERATIONS BOTH WILL REPORT TO MR BRYAN AS PRESIDENT MR BOONSTRA WAS PAID A SALARY OF 601585 IN FISCAL 1993 AND RECEIVED A 553693 BONUS PLUS RESTRICTED STOCK AWARDS THE COMPANY VALUED AT 985000 THE COMPANY WOULDN'T DISCLOSE ITS FINANCIAL SEVERANCE ARRANGEMENTS WITH MR BOONSTRA NOR WOULD IT SAY WHETHER HE WOULD BECOME A CONSULTANT SAYING THOSE DETAILS WOULD BE SPELLED OUT IN FORTHCOMING PUBLIC DOCUMENTS 9401050089 940105 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 7/8 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 323 30 DAYS 325 60 DAYS 329 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 261 TWO MONTHS 266 THREE MONTHS 280 SIX MONTHS 301 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 320 ONE MONTH 330 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 312 60 DAYS 316 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 710 60 DAYS 718 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 709 60 DAYS 719 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401050088 940105 MAJOR AIRLINES FOLLOW NORTHWEST'S LEAD AND SLASH FARES TO BOOST WINTER TRAVEL BY MICHAEL J MCCARTHY AND JAMES S HIRSCH STAFF REPORTERS OF THE WALL STREET JOURNAL THE NATION'S MAJOR AIRLINES SERVED UP THE FIRST FARE SALE OF THE YEAR SLASHING TICKET PRICES NEARLY IN HALF TO STIMULATE SEASONALLY SLOW WINTER DEMAND DESPITE THE STEEPNESS OF THE FARE CUTS AIRLINE TICKET PRICES STILL ARE EXPECTED TO RISE 4 TO 6 IN 1994 ACCORDING TO SEVERAL INDUSTRY FORECASTS ALSO SINCE FARES ALREADY HAD BEGUN CREEPING UP AT YEAR END AIRLINES AREN'T EXPECTED TO BE HURT MUCH BY THE LATEST ROUND OF DISCOUNTS THIS YEAR'S WINTER SALE WAS LAUNCHED LATE MONDAY BY NORTHWEST AIRLINES THE NATION'S FOURTHLARGEST CARRIER AND A UNIT OF WINGS HOLDINGS INC IN THE SALE WHICH OFFERS FARE CUTS OF AS MUCH AS 45 TICKETS MUST BE PURCHASED BY NEXT TUESDAY AND PASSENGERS MUST TRAVEL BETWEEN JAN 18 AND APRIL 15 TICKETS WHICH AREN'T REFUNDABLE REQUIRE A 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY NORTHWEST'S OFFER COVERS ALL OF THE US CANADA AND MOST CARIBBEAN DESTINATIONS OTHER MAJOR AIRLINES RESPONDED IN KIND WHILE THE 45 MAXIMUM CUT APPEARS SUBSTANTIAL IT FOLLOWS TWO SEPARATE FARE INCREASES IN DECEMBER THAT RAISED ADVANCEPURCHASE ROUNDTRIP TICKET PRICES 15 TO 30 THAT PUSHED SOME COASTTOCOAST FARES UP TO 659 A PRICE MANY LEISURE TRAVELERS WON'T PAY AMERICAN EXPRESS CO ESTIMATES THAT BUSINESS TRAVELERS PAID 9 HIGHER FARES ON AVERAGE IN DECEMBER THAN THEY DID IN THE LAST MONTH OF 1992 AND THE PRICE FOR FULL COACH IN DECEMBER SOARED 27 FROM A YEAR EARLIER INDUSTRY OBSERVERS EXPECT FARE SALES THIS YEAR TO BE MORE FREQUENT AND STEEPER ALTHOUGH OFF A HIGHER BASE PRICE THAN IN 1993 THE TREND SEEMS TO HAVE BEGUN LAST MONTH WHEN AIRLINES OFFERED BACKTOBACK DOMESTIC FARE DISCOUNTS OF 35 AND 30 BOTH PROGRAMS RAN FOR ABOUT A WEEK AND INCLUDED HEAVY RESTRICTIONS THE LATEST PROMOTIONAL ACTIVITY IS AIMED SQUARELY AT THE SLUGGISH WINTER PERIOD AIRPLANE OCCUPANCIES AS MEASURED BY LOAD FACTOR OR THE PROPORTION OF SEATS FILLED FELL BELOW 60 INDUSTRYWIDE LAST WINTER FROM NEARLY 76 IN THE PEAK SUMMER MONTH OF AUGUST THAT KIND OF DROPOFF TYPICALLY SENDS AIRLINES SCRAMBLING TO LURE PASSENGERS WITH DISCOUNTS THIS NEW PROMOTION APPEARS TO BE TRYING TO STEER PEOPLE TOWARD TRAVELING DURING SLOWER PERIODS NAMELY THE EARLY PART OF THE WEEK WITH WEEKEND TRAVEL CARRYING A PRICE PENALTY BEFORE THE PROGRAM BEGAN A TYPICAL AIRFARE FOR A DALLASTOBOSTON FLIGHT WAS 543 ROUND TRIP ACCORDING TO BEST FARES AN ARLINGTON TEXAS TRAVEL PUBLICATION UNDER THE LATEST FARE PROMOTION TRAVELERS CAN TRAVEL BETWEEN THOSE CITIES FOR AS LITTLE AS 326 ON A WEEKDAY AND 380 ON A WEEKEND BEST FARES SAYS IF ANYBODY HAS A NEW YEAR'S RESOLUTION IT SHOULD BE 'I'LL NEVER PAY FULL FARE' SAID TOM PARSONS EDITOR OF BEST FARES DELTA AIR LINES AND CONTINENTAL AIRLINES BOTH SAID THEY WOULD MATCH NORTHWEST'S FARE INITIATIVE ON THEIR DOMESTIC ROUTES AND FLIGHTS TO CANADA AMR CORP'S AMERICAN AIRLINES SAID IT WOULD MATCH THE FARES IN 48 STATES AND ON CERTAIN ROUTES TO THE CARIBBEAN HAWAII AND CANADA UAL CORP'S UNITED AIRLINES SAID IT WOULD OFFER THE DISCOUNTED FARES ONLY ON ITS DOMESTIC ROUTES USAIR GROUP INC SAID IT WOULD MATCH THE PROMOTION IN ALL ITS DOMESTIC MARKETS 9401050087 940105 BUSINESS BRIEF ACCLAIM ENTERTAINMENT INC NET INCOME JUMPED 97 IN FISCAL FIRST QUARTER ACCLAIM ENTERTAINMENT INC A PUBLISHER OF INTERACTIVE ENTERTAINMENT SOFTWARE REPORTED FISCAL FIRSTQUARTER NET INCOME ROSE 97 ACCLAIM BASED IN OYSTER BAY NY SAID NET ROSE TO 123 MILLION OR 27 CENTS A SHARE FROM 63 MILLION OR 15 CENTS A SHARE A YEAR EARLIER REVENUE FOR THE QUARTER ENDED NOV 30 ROSE 62 TO 1274 MILLION FROM 788 MILLION A YEAR EARLIER THE WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING ROSE TO 453 MILLION FOR THE QUARTER FROM 422 MILLION A YEAR EARLIER COMMONSHARE INFORMATION WAS RESTATED TO REFLECT A 3FOR2 STOCK SPLIT DISTRIBUTED AUG 23 THE COMPANY SAID IN A STATEMENT THAT THE RECENT HOLIDAY SALES PERIOD WAS ITS BIGGEST HOLIDAY SELLING SEASON EVER 9401050086 940105 TECHNOLOGY & HEALTH STUDY FINDS NO LINK BETWEEN VACCINE FOR WHOOPING COUGH NEUROLOGICAL ILLS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A LARGE US STUDY FAILED TO FIND ANY EVIDENCE THAT THE WHOOPING COUGH VACCINE EXPOSES CHILDREN TO INCREASED RISK OF SERIOUS NEUROLOGICAL ILLNESS RESEARCHERS SAID THAT THE FINDINGS WHILE NOT ABSOLUTE PROVIDE REASSURANCE THAT CURRENT US AND INTERNATIONAL PUBLIC HEALTH POLICIES TO ADMINISTER THE VACCINE TO ALL CHILDREN UNDER AGE TWO ARE SOUND THE REPORT IS THE LATEST EPISODE IN A LONGRUNNING CONTROVERSY OVER THE SAFETY OF THE PERTUSSIS VACCINE WHICH IS GIVEN TO MILLIONS OF INFANTS AND CHILDREN WORLDWIDE TO PREVENT WHOOPING COUGH A PERTUSSIS VACCINE IS USUALLY ADMINISTERED IN COMBINATION WITH DIPHTHERIA AND TETANUS VACCINES IN WHAT ARE COMMONLY KNOWN AS DTP SHOTS WE CAN'T SAY THAT ABSOLUTELY THERE IS NO RISK WHATSOEVER SAID JAMES L GALE AN EPIDEMIOLOGIST AT THE UNIVERSITY OF WASHINGTON SCHOOL OF PUBLIC HEALTH IN SEATTLE BUT WE COULDN'T DETECT ANY INCREASED RISK AND WE THINK THE VACCINE IS SAFE DR GALE IS LEAD AUTHOR OF THE STUDY WHICH APPEARS IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION WHILE THE PERTUSSIS VACCINE IS HIGHLY SUCCESSFUL IN PREVENTING WHOOPING COUGH A DISEASE THAT ONCE KILLED FIVE OUT OF EVERY 1000 CHILDREN BORN IN THE US ANECDOTAL REPORTS AND A LARGE BUT FLAWED BRITISH STUDY DONE IN 1976 HAD ASSOCIATED THE SHOTS IN RARE INSTANCES WITH ENCEPHALOPATHY SEIZURES AND OTHER NEUROLOGICAL MALADIES IN THE EARLY 1980S A FLOOD OF PRODUCT LIABILITY LAWSUITS IN THE US PROMPTED SOME MANUFACTURERS OF THE VACCINES TO HALT PRODUCTION THREATENING SUPPLIES IN 1986 CONGRESS PASSED THE NATIONAL VACCINE INJURY COMPENSATION PROGRAM A NOFAULT APPROACH TO COMPENSATING FAMILIES PRESUMED TO HAVE BEEN INJURED BY THE VACCINES THEREBY ENDING THE THREAT TO SUPPLIES AND SPURRING RESEARCH ON NEW IMMUNIZATIONS FOR THEIR REPORT DR GALE AND HIS COLLEAGUES TRACKED 218000 CHILDREN AGED ONE MONTH TO 24 MONTHS IN WASHINGTON STATE AND OREGON BETWEEN AUG 1 1987 AND JULY 31 1988 THEIR CONCLUSIONS ARE BASED ON 424 CASES OF CHILDREN WHO DEVELOPED A NEUROLOGICAL ILLNESS AND WHO WERE EACH COMPARED WITH TWO OTHER CHILDREN OF THE SAME AGE GENDER AND COUNTY OF BIRTH THE FINDINGS INDICATED THAT CHILDREN WITH NEUROLOGICAL ILLNESSES HAD SOMEWHAT HIGHER ODDS OF BEING VACCINATED WITHIN SEVEN DAYS OF THE ONSET OF THEIR SYMPTOMS BUT RESEARCHERS SAID THE DIFFERENCES WERE TOO SMALL TO BE CONSIDERED STATISTICALLY SIGNIFICANT THE STUDY WAS DESIGNED MUCH LIKE THE EARLIER BRITISH REPORT BUT CORRECTED FOR FLAWS THAT INCLUDED FAILURES TO BLIND SOME RESEARCHERS FROM KEY ELEMENTS OF THE STUDY AND TO PRECISELY DETERMINE THE INTERVAL BETWEEN VACCINATION AND ONSET OF SYMPTOMS HOWEVER DR GALE SAID THE NEW REPORT IS ALSO FLAWED BECAUSE EVEN WITH THE LARGE NUMBER OF CHILDREN STUDIED THE STUDY WASN'T BIG ENOUGH TO RULE OUT ABSOLUTELY A LINK BETWEEN THE VACCINE AND THE ILLNESS BUT HE SAID A LARGER STUDY THAT MIGHT PROVIDE THE ANSWER WOULD BE TOO EXPENSIVE TO CONDUCT IN AN EDITORIAL ACCOMPANYING THE REPORT REGINA RABINOVICH AND ANTHONY ROBBINS OF THE US PUBLIC HEALTH SERVICE'S NATIONAL VACCINE PROGRAM IN WASHINGTON DC INDICATED A NEW GENERATION OF VACCINES MAY BE AVAILABLE BY LATE IN THIS DECADE MEANTIME RELIANCE ON THE CURRENT VERSIONS REMAINS IMPERATIVE THE US CENTERS FOR DISEASE CONTROL AND PREVENTION REPORTED RECENTLY THAT THROUGH EARLY DECEMBER LAST YEAR 5873 CASES OF WHOOPING COUGH WERE REPORTED IN THE US THE HIGHEST TOTAL SINCE 1967 9401050085 940105 BUSINESS BRIEF LONE STAR INDUSTRIES INC REORGANIZATION PLAN WINS APPROVAL IN EARLY VOTE TALLY LONE STAR INDUSTRIES INC SAID A PRELIMINARY VOTE TALLY SHOWED THAT SHAREHOLDERS AND CREDITORS APPROVED THE COMPANY'S REORGANIZATION PLAN THE STAMFORD CONN CONTRUCTIONMATERIAL COMPANY WHICH HAS BEEN OPERATING UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE DECEMBER 1990 SAID THE PLAN STILL MUST BE APPROVED BY US BANKRUPTCY COURT IN NEW YORK WHICH HAS SET A CONFIRMATION HEARING FOR FEB 9 IN THE MEANTIME LONE STAR SAID THE COURT WILL HOLD A HEARING MONDAY TO CONSIDER THE ADEQUACY OF A DISCLOSURE STATEMENT ABOUT THE PLAN PROPOSED BY THE COMMONSTOCK REPRESENTATIVES OF THE OFFICIAL COMMITTEE OF EQUITY HOLDERS LONE STAR SAID THAT MAJOR CONSTITUENCIES INVOLVED IN ITS BANKRUPTCY HAVE FILED OBJECTIONS TO THE STATEMENT 9401050084 940105 BUSINESS BRIEF AST RESEARCH INC COMPANY FILES PATENT SUIT AGAINST TEXAS INSTRUMENTS PERSONALCOMPUTER MAKER AST RESEARCH INC IRVINE CALIF SAID IT SUED TEXAS INSTRUMENTS INC ACCUSING TI OF INFRINGING ON AN AST PATENT AND BREAKING FEDERAL AND CALIFORNIA ANTITRUST LAWS BY OFFERING SECRET DISCOUNTS TO SELECTED CUSTOMERS THE SEALED LAWSUIT WAS FILED MONDAY IN US DISTRICT COURT IN SANTA ANA CALIF A TI SPOKESMAN SAID THE COMPANY COULDN'T COMMENT BECAUSE IT HADN'T YET SEEN THE LAWSUIT AN AST SPOKESMAN DECLINED TO SAY WHICH PATENT TI HAS ALLEGEDLY INFRINGED HE SAID THE SUIT SEEKS UNSPECIFIED DAMAGES AST SAID THAT UNDER TERMS OF ITS JULY 1993 ACQUISITION OF TANDY CORP'S PC MANUFACTURING BUSINESS AST IS ENTITLED TO PAY REDUCED ROYALTY RATES TO TI EQUAL TO THE RATES PAID BY AST COMPETITORS 9401050083 940105 SMALL STOCK FOCUS ISSUES POST MODERATE GAIN ON REBOUND IN TECHNOLOGY SECTOR AND BOND PRICES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE TECHNOLOGY SECTOR AND BOND PRICES BOUNCED BACK AFTER TAKING A THRASHING MONDAY GIVING SMALLCOMPANY STOCKS A MODERATE BOOST LAST WEEK WE WERE OVERSOLD SAID LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY & CO THE BUYING HAD BEEN LIGHT BUT BUYERS GOT THE CONFIDENCE TO STEP IN WHEN THE BOND MARKET STARTED ACTING BETTER BONDS WERE STRONG ALL SESSION WITH THE TREASURY'S LONG BOND RISING NEARLY A POINT PUSHING ITS YIELD DOWN TO 634 MONDAY A SHARP DECLINE IN THE BOND MARKET WAS A MAJOR DEPRESSANT FOR EQUITIES THE RUSSELL 2000 INDEX WHICH CHARTS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES CLIMBED 044 POINT OR 017 TO END AT 25697 MONDAY THE BAROMETER GAVE BACK NEARLY ALL OF FRIDAY'S 240POINT ADVANCE WHICH WAS TIED TO ENDOFTHEYEAR BUYING A COMEBACK IN THE TECHNOLOGY GROUP TOOK THE NASDAQ COMPOSITE INDEX 352 POINTS OR 046 HIGHER TO FINISH AT 77428 AFTER PLUNGING 604 POINTS MONDAY ADVANCING NASDAQ STOCKS ROUTED DECLINERS 1723 TO 1370 ON NASDAQ NATIONAL MARKET VOLUME OF 253196200 SHARES AND TOTAL VOLUME OF 298602000 SHARES MONDAY'S POSTHOLIDAY NATIONAL MARKET VOLUME WAS A THIN 212749800 SHARES WHILE OVERALL VOLUME REGISTERED 253023300 SHARES KIDDER PEABODY'S MR ZIPPER SAID INTEREST RATES ARE GOING TO DECIDE WHAT THE MARKET IS GOING TO DO FOR THE NEAR TERM RATES SHOULD CONTINUE TO BE THE PRIMARY FOCUS UNTIL THE RELEASE OF FOURTHQUARTER EARNINGS IN THE NEXT FEW WEEKS HE ADDED LOWER INTEREST RATES HELPED SOME BANK STOCKS POST GAINS COMMUNITY FIRST BANKSHARES FARGO ND MOVED UP 5/8 TO 13 1/4 HORIZON BANK ADDED 1/2 TO 16 1/4 AND BAY VIEW CAPITAL SAN MATEO CALIF EDGED UP 3/8 TO 21 3/4 PAUL STANTON HEAD OF OVERTHECOUNTER TRADING AT JOHNSTON LEMON & CO SAID BARGAINHUNTING FOR LARGER HIGHTECH STOCKS SPILLED OVER INTO SMALLER RECENTLY BATTERED ISSUES GAINERS INCLUDE INTEGRATED CIRCUITS DESIGNER VITESSE SEMICONDUCTOR CAMARILLO CALIF WHICH ROSE 5/8 TO 4 3/8 CAERE A LOS GATOS CALIF SOFTWARE COMPANY WHICH INCREASED 7/8 TO 10 1/2 AND CAMBEX CORP A WALTHAM MASS DESIGNER OF COMPUTER PRODUCTS WHICH ROSE 3/4 TO 4 7/8 A FEW TECH STOCKS RALLIED ON NEWS NETWORK IMAGING OF HERNDON VA WAS UP 1 3/8 TO 11 7/8 CNBC FINANCIAL CORRESPONDENT DAN DORFMAN CITED STARR SECURITIES ANALYST CASEY STERN'S BULLISH VIEWS ON THE MAKER OF OPTICAL DISK STORAGE SYSTEMS MR STERN SAID HE SEES NETWORK IMAGING'S SHARES RISING TO 25 TO 30 IN THE NEXT 18 MONTHS NEW YORK STOCK EXCHANGELISTED ANTHEM ELECTRONICS SAN JOSE CALIF JUMPED 2 1/2 TO 31 1/4 THE SEMICONDUCTOR COMPANY SAID IT SIGNED AN AGREEMENT TO SELL ITS EAGLE TECHNOLOGY BUSINESS SUBSIDIARY TO ARTISOFT FOR 99 MILLION ARTISOFT A TUCSON ARIZ DESIGNER OF LOCAL AREA NETWORK SOFTWARE AND SYSTEMS LEAPED 1 3/4 TO 16 1/4 BUT STRUCTURAL DYNAMICS RESEARCH DROPPED 1 TO 15 1/4 AS CAUTIOUS INVESTORS FOCUSED ON THE COMPANY'S EARNINGS REPORT TENTATIVELY SCHEDULED FOR RELEASE JAN 18 THE MILFORD OHIO SOFTWARE CONCERN DISAPPOINTED WALL STREET A COUPLE OF TIMES LAST YEAR BY MISSING EXPECTATIONS AND SPECULATION SEEMS TO BE IT COULD FALL SHORT AGAIN SAID BEN Z ROSE A HANCOCK INSTITUTIONAL EQUITY SERVICES ANALYST MANY MEDICALRELATED STOCKS WERE STRONG TECHNE A MINNEAPOLIS BIOTECHNOLOGY CONCERN ROSE 1 TO 11 1/4 CARE GROUP A HOME HEALTHCARE PROVIDER BASED IN LAKE SUCCESS NY MOVED UP 9/16 TO 4 1/8 AND SYNERGEN A BOULDER COLO PHARMACEUTICAL COMPANY ADVANCED 1 3/8 TO 13 1/2 SUMMIT TECHNOLOGY A WALTHAM MASS DESIGNER OF MEDICAL EQUIPMENT SOARED 4 TO 24 7/8 THE FOOD AND DRUG ADMINISTRATION REPORTEDLY ACCEPTED FOR FILING THE COMPANY'S PREMARKET APPROVAL APPLICATION TO COMMERCIALLY MARKET AND SELL ITS EXCIMER LASER SYSTEM TO TREAT NEARSIGHTEDNESS ENVIROTEST SYSTEMS INCREASED 1 3/4 TO 23 1/4 FOLLOWING AN INITIAL BUY RATING FROM GOLDMAN SACHS & CO ANALYST BARRY A MANNIS SEES THE STOCK PRICE OF THE TUCSON ARIZ PROVIDER OF VEHICLE EMISSIONS TESTING PROGRAMS REACHING 35 WITHIN A YEAR BABBAGE'S LOST 2 1/4 TO 11 LATE MONDAY THE DALLAS RETAILER SAID SALES AT STORES OPEN AT LEAST ONE YEAR WERE DOWN 15 IN DECEMBER HURT BY A DECLINE IN VIDEO GAME SALES GRAND CASINOS MINNEAPOLIS JUMPED 1 3/4 TO 25 1/2 SMITH BARNEY SHEARSON INC PUT AN INITIAL BUY ON THE STOCK AND MERRILL LYNCH & CO INITIATED COVERAGE WITH A NEARTERM NEUTRAL RATING SHAW GROUP BATON ROUGE LA ALSO BENEFITED FROM AN INITIAL BUY RECOMMENDATION FROM SMITH BARNEY THE SHARE PRICE OF THE MAKER OF PIPING SYSTEMS ADVANCED 2 1/4 TO 21 3/4 NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 100 WHILE 18 HIT NEW LOWS 9401050082 940105 BUSINESS BRIEF BETH ISRAEL MEDICAL CENTER SPACE IN TOWER COMPLEX BOUGHT FROM EQUITABLE COS BETH ISRAEL MEDICAL CENTER NEW YORK SAID IT PURCHASED FOUR FLOORS OF COMMERCIAL SPACE IN THE ZECKENDORF TOWERS COMPLEX FOR 34 MILLION FROM EQUITABLE LIFE ASSURANCE SOCIETY OF THE US BETH ISRAEL PLANS TO MOVE ITS OUTPATIENT SERVICES TO THE MIXEDUSE COMPLEX ON UNION SQUARE IN NEW YORK IN LATE 1995 AFTER RENOVATIONS ARE COMPLETED TO OCCUPY ABOUT HALF OF THE 306000 SQUARE FEET OF SPACE AND TO LEASE THE REMAINDER OUTPATIENT SERVICES FOR BETH ISRAEL A TEACHING HOSPITAL THAT IS THE MANHATTAN CAMPUS FOR THE ALBERT EINSTEIN COLLEGE OF MEDICINE OF YESHIVA UNIVERSITY ARE CURRENTLY AT 16TH STREET AND FIRST AVENUE EQUITABLE LIFE IS A UNIT OF EQUITABLE COS A FINANCIALSERVICES CONCERN 9401050081 940105 AUTOS SALES OF TRUCKS STILL SURGING TAURUS TOP CAR BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AMERICA'S LOVE AFFAIR WITH THE CAR IS CONTINUING ITS SHIFT TOWARD WELL TRUCKS ACCORDING TO EARLY RESULTS FOR 1993 FOUR OF THE TOP SIX VEHICLES SOLD IN THE US LAST YEAR WERE TRUCKS AS SALES OF PICKUPS VANS AND SPORTUTILITY VEHICLES SURGED PART OF THAT INCREASE REFLECTS THE NATURAL STRENGTH OF TRUCKS IN AN ECONOMIC RECOVERY BUT IT ALSO UNDERSCORES A SEA CHANGE IN VEHICLEBUYING HABITS COMPREHENSIVE INDUSTRY SALES RESULTS WEREN'T AVAILABLE YESTERDAY BECAUSE SEVERAL IMPORT AUTO MAKERS WON'T RELEASE SALES FIGURES UNTIL TODAY BUT BASED ON FIGURES REPORTED BY THE BULK OF THE INDUSTRY CAR SALES FOR 1993 ARE EXPECTED TO TOTAL ABOUT 14 MILLION CARS AND LIGHT TRUCKS THE HIGHEST AMOUNT SINCE 1989 THAT WOULD BE AN INCREASE OF 85 FROM 1992'S 129 MILLION CAR COMPANY EXECUTIVES AND ANALYSTS ARE PREDICTING THE INDUSTRY WILL SELL AS MANY AS 15 MILLION VEHICLES THIS YEAR THE TOPSELLING VEHICLE IN AMERICA FOR THE 12TH YEAR RUNNING WAS FORD MOTOR CO'S FULLSIZED PICKUP TRUCK WHICH FENDED OFF A CHALLENGE FROM GENERAL MOTORS CORP'S FULLSIZED CHEVROLET PICKUP TRUCK FORD SOLD 565089 FSERIES TRUCKS LAST YEAR A RISE OF 157 FROM THE PREVIOUS YEAR CHEVROLET SOLD 518027 C/K TRUCKS UP 20 TWO OTHER FORD TRUCKS THE RANGER COMPACT PICKUP AND THE EXPLORER SPORT UTILITY ALSO FINISHED AMONG THE TOP SIX SELLERS BOTH THE FORD AND CHEVROLET FULLSIZED PICKUPS ARE WORK VEHICLES THAT ALWAYS MAKE BIG GAINS DURING ECONOMIC RECOVERIES AS CONSTRUCTION COMPANIES AND OTHER BUSINESSES REPLACE AGING VEHICLES BUT FULLSIZED PICKUP TRUCKS ALSO ARE BEING PURCHASED INCREASINGLY FOR PERSONAL USE ESPECIALLY IN THE SOUTH AND WEST WE SELL THREE NEW TRUCKS FOR EVERY NEW CAR SAYS SCOTT BOGGESS WHOSE FAMILY OPERATES SEVERAL GM DEALERSHIPS IN MADISONVILLE KY MORE TRUCK BUYERS IN MADISONVILLE ARE OPTING FOR EXTENDEDCAB PICKUPS WHICH SEAT UP TO SIX ADULTS EVERY INDICATOR YOU CAN SEE SAYS WE'RE GOING TO HAVE A VERY STRONG INDUSTRY SAYS FORD'S MR ROBERTS WHO CITED LOW INTEREST RATES LOW INFLATION AND RISING CONSUMER CONFIDENCE JUST THE SAME TRUCK SALES ARE LIKELY TO INCREASE AT A SLOWER RATE THIS YEAR BECAUSE MANY TRUCK FACTORIES ALREADY ARE WORKING OVERTIME AND CAN'T INCREASE PRODUCTION SHARPLY ANALYST SUSAN JACOBS OF JACOBS & ASSOCIATES SEES BOTH CAR AND TRUCK SALES RISING ABOUT 6 IN 1994 THE BIGGEST MOVE CAME AT CHRYSLER CORP WHICH SOLD TWO MILLION VEHICLES IN 1993 UP 20 FROM THE PREVIOUS YEAR CHRYSLER'S CAR SALES BUOYED BY THE COMPANY'S NEW LH MIDSIZE CARS ROSE 231 WHILE ITS TRUCK SALES CLIMBED 18 THE JAPANESE CAR MAKERS DIDN'T DO AS WELL TOYOTA MOTOR CORP SOLD ONE MILLION VEHICLES AN INCREASE OF ONLY 13 HONDA MOTOR CO SOLD 717000 CARS A DECLINE OF 65 THE COMPLETE WALL STREET JOURNAL CARSALES TABLE WILL APPEAR IN TOMORROW'S PAPER 9401050080 940105 CREDIT MARKETS TREASURY PRICES BREAK SIXSESSION LOSING STREAK ON REPORT CASTING DOUBT ON ECONOMY'S STRENGTH BY THOMAS D LAURICELLA AND JACQUELINE DOHERTY SPECIAL TO THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME IN SIX TRADING SESSIONS PRICES OF US TREASURY SECURITIES ROSE AS INVESTORS WELCOMED A REPORT THAT CAST SOME DOUBT ON THE ECONOMY'S STRENGTH FOR THE PAST FEW WEEKS A BARRAGE OF REPORTS INDICATING THE ECONOMY IS GAINING STRENGTH HAS PUMMELED BOND PRICES BOND INVESTORS FEAR A GROWING ECONOMY WILL LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN BUT YESTERDAY INVESTORS EMBRACED A REPORT ON CONSUMER SPENDING THAT CAME IN A TOUCH BELOW EXPECTATIONS TO BE SURE MUCH OF THE BUYING YESTERDAY CAME FROM SPECULATIVE INVESTORS WHO PAY LESS ATTENTION TO ECONOMIC REPORTS THAN TO THE RELATIONSHIP BETWEEN THE PRICES OF DIFFERENT SECURITIES THE RESULT WAS A SHARP PRICE JUMP FOR TREASURY SECURITIES THE PRICE OF THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY A POINT OR NEARLY 10 FOR A BOND WITH A 1000 FACE VALUE TO 98 21/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 634 FROM 642 ON MONDAY THE MARKET WAS DOWN SIX DAYS IN A ROW SO IT'S NOT SURPRISING THAT WE'D HAVE A LITTLE BIT OF A BOUNCE SAID RON CONNORS MANAGER OF GOVERNMENT SECURITIES TRADING AT BEAR STEARNS & CO THE GAINS DIDN'T COME EASY HOWEVER IT WAS A ROLLERCOASTER SESSION IN WHICH THE MARKET MOVED HIGHER DURING THE MORNING AND PLUNGED TO LOWS AT MIDAFTERNOON BEFORE BOUNCING QUICKLY BACK TO NEW HIGHS OTHER TREASURY SECURITIES ALSO POSTED GAINS BY DAY'S END THE 10YEAR NOTE ROSE NEARLY 5/8 POINT TO 99 12/32 TO YIELD 582 COMPARED WITH 590 ON MONDAY THE COUPONEQUIVALENT YIELDS OF VERY SHORTTERM SECURITIES ALSO DROPPED WITH THE THREEMONTH BILL YIELDING 314 BY LATE YESTERDAY COMPARED WITH 315 ON MONDAY TRADERS SAID THE BULK OF THE BUYING WAS BY PLAYERS WHO HAD SET SHORT POSITIONS DURING THE MARKET'S DOWNDRAFT OF THE PAST WEEK IN A SHORT SALE A TRADER SELLS A BORROWED SECURITY IN HOPES OF BUYING THE ISSUE BACK AT A LOWER LEVEL AND POCKETING THE DIFFERENCE PROBABLY 50 TO 60 OF THE BUYING WAS PROFESSIONAL SHORT COVERING SAID MR CONNORS OF BEAR STEARNS AFTER POSTING EARLY GAINS THE MARKET HELD NARROW RANGES INTO THE AFTERNOON THE CALM WAS SHATTERED AT MIDAFTERNOON HOWEVER WHEN ACCORDING TO DEALERS PRICES WERE PUSHED DOWN BY A FEW LARGE SALES THE EMERGENCE OF A LARGE SELLER OF FIVEYEAR NOTES POSSIBLY AS MUCH AS 1 BILLION SENT THE MARKET CRASHING TO ITS LOWS THE 30YEAR BOND FOR EXAMPLE GAVE BACK ALL OF ITS HALFPOINT RALLY IN THE MIDAFTERNOON SELLOFF BUT WITHIN 35 MINUTES OF REACHING SESSION LOWS PRICES HAD BOUNCED BACK TO NEW HIGHS TRADERS SAID RELATIVELY FAVORABLE ECONOMIC NEWS FOLLOWED QUICKLY BY A LARGE PURCHASE OF 30YEAR BONDS COMBINED TO SEND THE MARKET HIGHER TRADERS SAID THE MARKET FOUND ENCOURAGEMENT IN A SLIGHT RETREAT IN AUTOMOBILE SALES DURING LATE DECEMBER AS THE MARKET WAS WINDING UP FOR THE DAY NOT EVERY CAR MAKER HAD REPORTED BUT WITH CAR SALES LOOKING AS IF THEY WOULD COME IN NEAR A 68 MILLIONUNIT RATE DEALERS VOICED RELIEF THAT CAR SALES WERE BELOW THE FROTHY 74 MILLION RATE THAT SOME HAD FEARED THE JOHNSON REDBOOK SERVICE MEANWHILE REPORTED THAT CHAIN AND DEPARTMENTSTORE SALES FELL 04 DURING DECEMBER FROM NOVEMBER WHILE THE REDBOOK DATA ACTUALLY SHOWED AN IMPROVEMENT IN SALES FROM THE 08 DECLINE SHOWN FOR THE FIRST THREE WEEKS OF THE MONTH SOME IN THE MARKET INTERPRETED THE DATA AS SUGGESTING THAT ECONOMIC GROWTH WAS EASING UP AS THE FOURTH QUARTER DREW TO A CLOSE THE BULLS WERE ABLE TO MAKE A CASE THAT THE ECONOMY IS LOSING MOMENTUM SAID JOSEPH LIRO CHIEF ECONOMIST AT SG WARBURG & CO SO SOME OF THE FACTORS THAT HAD BEEN DEPRESSING THE MARKET REVERSED THEMSELVES BUT MR LIRO AND OTHER ANALYSTS DIDN'T ATTACH TOO MUCH IMPORTANCE TO YESTERDAY'S DATA MARILYN SCHAJA A MONEYMARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP PREDICTED OVERALL RETAIL SALES FOR DECEMBER WILL BE IN THE PLUS COLUMN OVER NOVEMBER NOTING THAT THE DETAILS OF THE REDBOOK REPORT SHOWED AN ACCELERATION OF SALES IN THE FINAL WEEK OF THE MONTH WARBURG'S MR LIRO MEANWHILE SAID THE BOND MARKET WILL FACE STILL MORE OBSTACLES THE ECONOMIC NUMBERS WILL KEEP PUSHING YIELDS HIGHER AND PRICES LOWER FOR THE NEXT SEVERAL WEEKS MR LIRO ARGUED TRADERS WERE ALSO NOT THAT IMPRESSED BY THE BOND MARKET'S PERFORMANCE YESTERDAY WE STILL BELIEVE THE MARKET IS IN TROUBLE SAID MR CONNORS OF BEAR STEARNS THE PROPER BUILDING BLOCKS ARE IN PLACE TO ALLOW THE ECONOMY TO CONTINUE ITS MOMENTUM PROBABLY NOT AT THE SAME PACE AS IN THE FOURTH QUARTER BUT PROBABLY ABOVE 3 MANY PLAYERS HAVE ALREADY TURNED THEIR ATTENTION TO THE MARKET'S NEXT HURDLE WHICH TRADERS WILL FACE FRIDAY MORNING WHEN THE LABOR DEPARTMENT IS SLATED TO RELEASE THE DECEMBER EMPLOYMENT REPORT MOST ECONOMISTS BELIEVE NONFARM PAYROLL EMPLOYMENT WILL REGISTER AN INCREASE OF ABOUT 225000 FOR THE MONTH ALTHOUGH TRADERS ARE FOCUSING THEIR ATTENTION ON ESTIMATES FOR INCREASES CLOSER TO 300000 NONFARM PAYROLL EMPLOYMENT EXPANDEDED BY 208000 DURING NOVEMBER THE CORPORATE BOND MARKET SHOWED THE FIRST SIGNS OF POSTHOLIDAY LIFE YESTERDAY WITH 525 MILLION OF DEBT SOLD AND ACTIVE TRADING IN THE SECONDARY MARKETS TWO INVESTMENTGRADE OFFERINGS WERE PRICED FOR INTERNATIONAL LEASE FINANCE CORP AND BEAR STEARNS COS WHILE ICF KAISER INTERNATIONAL INC FINALLY PRICED ITS JUNK BONDS YIELD SPREADS IN THE INVESTMENTGRADE MARKET CONTINUED TO TIGHTEN SLIGHTLY IN REACTION TO THE SCARCE SUPPLY OF NEW ISSUES AND INVESTORS' NEED TO PUT THEIR MONEY TO WORK TRADERS SAID THE YIELD SPREAD IS THE DIFFERENCE BETWEEN A BOND'S YIELD AND THE YIELD OF THE TREASURY WITH A SIMILAR MATURITY A NARROWING SPREAD FOR A GIVEN BOND ISSUE IS OFTEN CONSIDERED A SIGN OF STRENGTHENING DEMAND SPREADS OVER TREASURYS FOR SOUTH KOREAN GOVERNMENTGUARANTEED BONDS NARROWED BY ABOUT 008 PERCENTAGE POINT AS NEGOTIATIONS BETWEEN THE U S AND NORTH KOREA ABOUT THE INSPECTION OF NORTH KOREA'S NUCLEAR SITES IMPROVED ONE TRADER SAID THE JUNKBOND MARKET SAW ACTIVE TRADING YESTERDAY WITH PRICES RISING ABOUT 1/8 POINT STEEL COMPANIES BENEFITED FROM THE JUNKBOND RALLY THE PRICE OF WEIRTON STEEL CORP'S 10875 COUPON SENIOR NOTES MATURING IN 1999 ROSE ONE POINT OR 10 FOR A BOND WITH A 1000 FACE VALUE TO 104 THE YIELD DROPPED TO 993 FROM 1016 REVLON WORLDWIDE CORP'S ZEROCOUPON SENIOR SECURED NOTES MATURING IN 1998 TRADED UP MORE THAN 2 5/8 POINTS OR 2625 FOR A BOND WITH A 1000 FACE VALUE TO 52 5/8 THE YIELD DROPPED TO 1597 FROM 1729 REVLON WORLDWIDE IS A UNIT OF MACANDREWS & FORBES HOLDINGS INC THE BONDS OF RH MACY & CO CONTINUED TO RISE YESTERDAY IN RESPONSE TO NEWS THAT FEDERATED DEPARTMENT STORES INC HAD INVESTED IN THE NEW YORK RETAILER THE PRICE OF THE COMPANY'S 145 COUPON SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 ROSE 1 1/2 POINTS 51 1/2 THE 145 COUPON SUBORDINATED DEBENTURES MATURING IN 2001 ROSE 1 3/8 POINTS AND THE ZEROCOUPON JUNIOR SUBORDINATED DEBENTURES MATURING IN 2006 ROSE 1/2 POINT TO 9 PRICES OF MUNICIPAL BONDS ENDED UNCHANGED TO SLIGHTLY LOWER IN SECONDARY TRADING CHICAGO'S 575 GASSUPPLY REVENUE BONDS OF 2023 ENDED UNCHANGED AT 98 3/4 TO YIELD 580 VALDEZ ALASKA'S 565 BONDS OF 2028 ENDED 1/8 LOWER AT 98 3/4 TO YIELD 570 MEANWHILE IN LIMITED NEWISSUE ACTIVITY A MERRILL LYNCH & CO GROUP WON THE SUFFOLK COUNTY NEW YORK WATER AUTHORITY ISSUE OF 102 MILLION OF WATERSYSTEM REVENUE BONDS THE DEAL'S 64 MILLION OF REVENUE BONDS WERE WON WITH A BID SETTING THE NET INTEREST COST AT 527 YIELDS FOR REOFFERED SECURITIES RANGE FROM 515 IN 2012 TO 527 IN 2017 MERRILL LYNCH WON THE 38 MILLION OF SUBORDINATEDLIEN BONDS WITH A BID SETTING THE NET INTEREST COST AT 504 AND GAVE THEM YIELDS THAT RANGE FROM 425 IN 2001 TO 500 IN 2009 THE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP PRICES OF MORTGAGE SECURITIES ENDED HIGHER AMONG 65 ISSUES FOR JANUARY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES CLOSED AT 99 1/32 UP 14/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES GAINED 12/32 TO END AT 99 3/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 98 31/32 UP 11/32 CHIEF AMONG FACTORS SUPPORTING THE MORTGAGE MARKET IS AN INCREASINGLY BULLISH OUTLOOK ON PREPAYMENTS OR THE EARLY CALL OF A MORTGAGE BOND DUE TO THE DISAPPEARANCE OF THE UNDERLYING HOME LOAN WHEN PREPAYMENTS SLOW DOWN THE MORTGAGE MARKET IS SEEN AS LESS VOLATILE AND THUS GENERALLY POSTS GAINS ALSO THE ANNOUNCEMENT YESTERDAY OF FOUR NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS INDICATES THAT THERE IS DEMAND FOR MORTGAGE BONDS BY DEALERS WHO WILL NEED THE SECURITIES AS COLLATERAL THE FOUR REMICS TOTALED OVER 18 BILLION AND WERE BACKED BY 6 65 AND 7 COUPONS WITH THE 7 COLLATERAL INDICATING THAT HIGHER COUPONS ARE REGAINING VALUE AS PREPAYMENTS SLOW 9401050079 940105 MEDCO CHAIRMAN NAMED BY MERCK TO KEY POSITION BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WHITEHOUSE STATION NJ MERCK & CO IN ANNOUNCING A REORGANIZATION SAID MARTIN J WYGOD WILL BECOME HEAD OF THE PHARMACEUTICAL GIANT'S CORE BUSINESS ITS US AND CANADIAN PRESCRIPTION DRUG OPERATIONS THE APPOINTMENT OF MR WYGOD 53 YEARS OLD WHO CONTINUES AS CHAIRMAN OF RECENTLY ACQUIRED MEDCO CONTAINMENT SERVICES INC FURTHER FUELS SPECULATION THAT MR WYGOD IS A LEADING CANDIDATE TO SUCCEED MERCK'S CURRENT CHAIRMAN P ROY VAGELOS WHEN HE RETIRES IN NOVEMBER THE APPOINTMENT CLEARLY STRENGTHENS WYGOD'S HAND AS A CONTENDER FOR VAGELOS'S JOB SAID JOHN TW HAWKINS MANAGING DIRECTOR OF EXECUTIVE PLACEMENT FIRM RUSSELL REYNOLDS ASSOCIATES INC THE ORIGINAL LIST OF CONTENDERS FOR THE POSITION HAS NARROWED IN THE PAST YEAR AND YESTERDAY'S RESHUFFLING MAY BE A SIGN THAT THE FIELD HAS DWINDLED EVEN FURTHER IN THE REORGANIZATION MERCK SPLIT ITS HUMAN HEALTH DIVISION INTO TWO PARTS THE US AND CANADIAN PRESCRIPTION DRUG OPERATIONS TO BE HEADED BY MR WYGOD AND NONNORTH AMERICAN DRUG OPERATIONS TO BE HEADED BY JERRY T JACKSON EXECUTIVE VICE PRESIDENT WHO CURRENTLY HEADS THE HUMAN HEALTH DIVISION MR JACKSON WAS CONSIDERED TO BE A POSSIBLE CANDIDATE TO SUCCEED DR VAGELOS 64 BUT HIS CHANCES APPEAR TO DIMINISH WITH THE LOSS OF SOME OF HIS RESPONSIBILITIES SAID HEMANT SHAH AN INDEPENDENT ANALYST DR VAGELOS ACKNOWLEDGED THE SUCCESSION ISSUE IS A HOT TOPIC WITH OUR BOARD OF DIRECTORS AND IT'S BEING PURSUED BUT HE SAID THE REORGANIZATION WASN'T INTENDED TO SEND ANY SIGNALS ABOUT CANDIDATES' STANDINGS IN THE SUCCESSION QUESTION HE ADDED THAT THERE ARE A NUMBER OF MERCK PEOPLE WHO ARE SUITABLE CANDIDATES FOR THE CHAIRMANSHIP DR VAGELOS WAS ALSO CAREFUL TO EMPHASIZE THAT THE RECENT FOCUS ON THE COMPANY'S CHANGING MARKETING STRATEGY DOESN'T DIMINISH THE IMPORTANCE OF MERCK'S RESEARCH OPERATIONS HEADED BY EDWARD M SCOLNICK EXECUTIVE VICE PRESIDENT OF SCIENCE AND TECHNOLOGY FOR MERCK WHO RECENTLY TOOK ON RESPONSIBILITY FOR MANUFACTURING MR HAWKINS SAID HE DOESN'T EXPECT THE ANNOUNCEMENT OF DR VAGELOS'S SUCCESSOR BEFORE THE MIDDLE OF THE YEAR THEY PROBABLY WOULD WANT TO SEE HOW MR WYGOD DOES IN THE JOB FOR A CERTAIN NUMBER OF MONTHS HE SAID MR WYGOD WILL OVERSEE OPERATIONS ACCOUNTING FOR ABOUT 9 BILLION OF THE COMPANY'S ESTIMATED 1993 SALES OF 14 BILLION INCLUDED IS A NEW MANAGEDCARE UNIT ANNOUNCED YESTERDAY CONTAINING MEDCO AND MERCK'S EXISTING MANAGEDCARE UNIT MERCK DECIDED TO MOVE VIGOROUSLY INTO AN IMMEDIATE INTEGRATION OF MEDCO RATHER THAN KEEP THE COMPANIES SEPARATE TO ALLOW US TO GET THE SYNERGIES RAPIDLY DR VAGELOS SAID ABOUT 300 PEOPLE FROM MERCK AND MEDCO WILL BE TRANSFERRED TO THE NEW BUSINESS UNIT CALLED THE MERCKMEDCO US MANAGED CARE DIVISION THE MOVE RAISES ANEW QUESTIONS ABOUT MEDCO'S ABILITY TO MAINTAIN IMPARTIALITY AS A MANAGER OF PHARMACEUTICAL BENEFITS FOR HEALTH PLANS IN THAT CAPACITY MEDCO IS SUPPOSED TO NEGOTIATE LOWER DRUG COSTS FROM ALL DRUG COMPANIES DR VAGELOS SAID MEDCO AND MERCK HAVE TAKEN MEASURES TO KEEP SEPARATE FROM MERCK ANY SENSITIVE MARKETING INFORMATION PROVIDED TO MEDCO BY OTHER PHARMACEUTICAL COMPANIES MOREOVER MR WYGOD SAID MEDCO HAS INCREASED THE NUMBER OF DRUG COMPANIES IT DEALS WITH AND KEPT THE NUMBER OF HEALTHPLAN CUSTOMERS ABOUT THE SAME SINCE THE MERGER THE NEW MANAGEDCARE UNIT WILL BE HEADED BY PER GH LOFBERG WHO CONTINUES AS MEDCO'S SENIOR EXECUTIVE VICE PRESIDENT OF STRATEGIC PLANNING AND MARKETING RICHARD J LANE WILL CONTINUE TO RUN MERCK'S MARKETING TO TRADITIONAL CUSTOMERS SUCH AS PHYSICIANS HOSPITALS AND RETAIL PHARMACIES MR JACKSON WHO WILL OVERSEE THE PRESCRIPTION DRUG BUSINESS OUTSIDE THE US AND CANADA SAID HE WILL BE SELLING THE MEDCO PHARMACEUTICAL COSTMANAGEMENT CONCEPT TO COUNTRIES THAT ARE SEEKING TO REDUCE HEALTHCARE COSTS MERCK HAS SET UP A CLASSIC SUCCESSION SITUATION BY GIVING CONTENDERS THE OPPORTUNITY TO MANAGE DIFFERENT ASPECTS OF THE BUSINESS MR HAWKINS SAID SUCH HORSE RACES ARE VERY COMMON AND ULTIMATELY IT'S HEALTHY HE SAID ALTHOUGH IT DOES CREATE UNCERTAINTY WITHIN THE ORGANIZATION THE ORIGINAL LIST OF CONTENDERS FOR DR VAGELOS'S JOB HAS NARROWED IN THE PAST YEAR RICHARD J MARKHAM RESIGNED LAST SUMMER AND IS NOW PRESIDENT OF MARION MERRELL DOW INC JOHN L ZABRISKIE RECENTLY LEFT MERCK TO BECOME CHAIRMAN AT UPJOHN CO FRANCIS H SPIEGEL JR EXECUTIVE VICE PRESIDENT APPEARS TO BE MOVING AWAY FROM MERCK'S MAINSTREAM BUSINESS AND INTO ITS JOINT VENTURES SAID MR SHAH OTHER POTENTIAL CANDIDATES ARE JUDY C LEWENT MERCK'S CHIEF FINANCIAL OFFICER AND EDWARD M SCOLNICK WHO HEADS MERCK'S RESEARCH OPERATIONS MR SHAH SAID BUT HE ADDED I THINK IT'S WYGOD THERE SEEMS TO BE A CHEMISTRY BETWEEN MR WYGOD AND DR VAGELOS HE ADDED THAT MR WYGOD IS WELL REGARDED ON WALL STREET IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MERCK SHARES ROSE 75 CENTS TO 36 9401050078 940105 CORPORATE FOCUS DIGITAL EQUIPMENT ACTS TO TURN AROUND UNIT IN EUROPE DAMIANI FORMER IBM EXECUTIVE TO GET JOB OF STEMMING LOSSES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA DIGITAL EQUIPMENT CORP TRYING TO FIX ITS LOSSRIDDEN EUROPEAN OPERATIONS IS HIRING A SPECIALIST ON THE SUBJECT AN EXECUTIVE OF ANOTHER LOSSMAKING EUROPEAN COMPUTER BUSINESS TODAY DIGITAL IS SCHEDULED TO ANNOUNCE THE APPOINTMENT AS ITS PRESIDENT IN EUROPE OF VINCENZO DAMIANI FORMERLY GENERAL MANAGER OF EUROPEAN MARKETING AND SERVICES AT ARCHRIVAL INTERNATIONAL BUSINESS MACHINES CORP THOUGH PERHAPS IRONIC THE 53YEAROLD ITALIAN'S MOVE FROM ONE AILING COMPUTER COMPANY TO ANOTHER REFLECTS HIS REPUTATION AS A NONONSENSE EXECUTIVE WITH AN EYE FOR DETAIL RATHER THAN GRAND STRATEGIES JUST THE KIND OF MANAGEMENT SKILLS THAT ARE SUDDENLY IN VOGUE IN THE WORLD COMPUTER INDUSTRY AS SALES SLUMP AND LOSSES MOUNT I LIKE TO SEE PROJECTS EXECUTED THIS IS MY STRENGTH AS A MANAGER MR DAMIANI SAYS IN AN INTERVIEW I AM IMPATIENT I WANT TO SEE THINGS HAPPEN THAT COULD BE DIFFICULT AT DIGITALEUROPE ONCE THE MAINSTAY OF THE COMPANY'S PROFITS BUT NOW ONE OF ITS SICKEST CHILDREN AFTER TWO YEARS OF WEAK EUROPEAN ECONOMIES AND AN ILLFATED ACQUISITION BUT TRUE TO FORM MR DAMIANI ALREADY IS BOLTING TOGETHER A STEPBYSTEP 10POINT PLAN TO TRY REPAIRING DIGITAL'S BUSINESS IN EUROPE WHICH PRODUCES ABOUT HALF THE COMPANY'S WORLDWIDE SALES HE CALLS HIS PLAN TO BE UNVEILED STARTING TODAY TO DIGITAL EMPLOYEES AROUND EUROPE THE DAMIANI AGENDA AND HE SAYS IT MAY INCLUDE TRIMMING EVEN MORE JOBS FROM DIGITAL'S 30000MEMBER EUROPEAN WORK FORCE THAN ALREADY PLANNED AS PART OF A WORLDWIDE COSTCUTTING PROGRAM AT DIGITAL AN ADDITIONAL 3000 OR SO JOBS HAD ALREADY BEEN SLATED TO GO IN EUROPE FOR THE FISCAL YEAR THAT BEGAN LAST JULY 4 ON TOP OF 5000 CUT EARLIER NOW HE SAYS HE'S COMMISSIONING A SPECIAL STUDY TO DETERMINE THE RIGHT SIZE FOR DIGITALEUROPE HE SAYS HE DOESN'T KNOW YET HOW BIG THE FINAL CUT WILL BE BUT THAT IT MAY WELL BE BEYOND THE ORIGINAL ESTIMATES HE ADDS THAT HE WILL ANNOUNCE HIS DECISION QUICKLY WITHIN 60 TO 90 DAYS TO GET THE BLOODLETTING OVER WITH AND RESTORE EMPLOYEE MORALE EMPLOYEE MOTIVATION ISN'T AT THE LEVEL WE CAN CONSIDER SATISFACTORY HE SAYS HIS AGENDA WORKED UP SINCE HIS DEPARTURE FROM IBM LATE LAST NOVEMBER ALSO INCLUDES RETRAINING MANY DIGITAL SALES PEOPLE REVISING MARKETING STRATEGY AND PUSHING FOR MORE SALES TO SMALL AND MEDIUMSIZE BUSINESSES BUT ALMOST TOTALLY ABSENT FROM HIS RHETORIC IS ANY TALK OF GRAND CORPORATE STRATEGY OR VISIONS AND AS SUCH MR DAMIANI ILLUSTRATES THE LATEST FASHION IN COMPUTERINDUSTRY MANAGEMENT AS MANY INDUSTRY GIANTS STRUGGLE TO CUT LOSSES IN TOUGH ECONOMIC TIMES CORPORATE VISIONARIES ARE OUT COMPETENT COMPANY MECHANICS ARE IN DIGITAL ACTUALLY HELPED USHER IN THIS FASHION WHEN ITS BOARD OUSTED COMPANY FOUNDER KENNETH OLSEN IN JULY 1992 AND REPLACED HIM AS CHIEF EXECUTIVE WITH ROBERT B PALMER A PRECISE AND METHODICAL MAN WHO WAS PREVIOUSLY DIGITAL'S VICE PRESIDENT MANUFACTURING MR PALMER'S BACKTOBASICS STRATEGY OF CUTTING COSTS AND JOBS HAS SO FAR SUCCEEDED IN REDUCING THE COMPANY'S LOSSES BUT HAS YET TO PRODUCE THE GROWTH IN REVENUE THAT ANALYSTS SAY DIGITAL NEEDS TO ENSURE ITS FUTURE PROSPERITY IN THE FISCAL FIRST QUARTER ENDED OCT 2 DIGITAL REPORTED A NET LOSS OF 832 MILLION SLIMMER THAN THE YEAR AGO LOSS OF 2605 MILLION BUT REVENUE IN THE QUARTER FELL 9 TO 301 BILLION THE VISION THING AS SOME INDUSTRY PUNDITS HAVE CALLED IT IS SIMILARLY PASSE AT IBM WHERE A FORMER MANAGEMENT CONSULTANT LOUIS GERSTNER JR WAS HIRED LAST YEAR TO SUCCEED OUSTED CHIEF EXECUTIVE JOHN F AKERS AND DRAFT A NONONSENSE RECOVERY PLAN AND AT APPLE COMPUTER INC FORMER CHIEF EXECUTIVE JOHN SCULLEY WHO WENT SO FAR AS TO WRITE A BOOK LAYING OUT HIS ROSY VISIONS OF THE TECHNOLOGICAL FUTURE WAS SUCCEEDED BY MICHAEL SPINDLER A GERMAN APPLE EXECUTIVE WHOSE NICKNAME THE DIESEL IS SAID TO REFLECT HIS BUSINESS DRIVE AND TOUGH MANAGEMENT STYLE MR DAMIANI CERTAINLY FITS THAT MOLD A 29YEAR IBM VETERAN HIS PAST POSTS HAVE INCLUDED BEING THE DETAILMAN IN EUROPE RESPONSIBLE FOR PUTTING INTO ACTION THE COMPANY'S DRACONIAN TURNAROUND STRATEGIES AMONG HIS PROJECTS SLASHING IBM'S EUROPEAN HEADQUARTERS STAFF BY MORE THAN HALF AT DIGITAL HE SAYS HIS JOBCUTTING REVIEW WILL INCLUDE A CLOSE LOOK AT THAT COMPANY'S 400EMPLOYEE EUROPEAN HEADQUARTERS STAFF IN GENEVA HE DECLINES TO DETAIL HIS PLANS BUT SAYS THAT MY OBJECTIVE IS TO HAVE A DIGITAL HEADQUARTERS STAFF THAT'S EXTREMELY SLIM HIS WORK AT IBM CAN HARDLY BE CALLED AN UNQUALIFIED SUCCESS WHILE THE EUROPEAN UNIT HAS BEEN POSTING INCREASED OPERATING PROFITS RESTRUCTURING EXPENSES HAVE GIVEN IT A NET LOSS AND IBM HAS FORECAST MORE JOB CUTS IN EUROPE OVER THE NEXT TWO YEARS TO BRING THE LEDGER BACK INTO BALANCE BUT MR DAMIANI SAYS HIS KIND OF MANAGEMENT SKILLS CAN FIT IN WELL AT DIGITAL AS AT MANY OTHER COMPUTER COMPANIES THESE DAYS MOST BIG COMPUTER FIRMS ARE FACING SOME BROADLY SIMILAR PROBLEMS WEAK ECONOMIC CONDITIONS A CHANGE IN MARKET TASTE TO SMALL COMPUTERS FROM LARGE ONES AND RAPID TECHNOLOGICAL CHANGE INDEED BETTER MANAGEMENT IS WHAT DIGITAL IN EUROPE NEEDS MOST RIGHT NOW MANY INDUSTRY ANALYSTS SAY THE COMPANY IS STILL UNDERGOING A DIFFICULT TRANSITION SAYS JANE DOORLY WHO FOLLOWS THE EUROPEAN MARKET FOR DATAQUEST INC MORE THAN HALF ITS PRODUCT SALES ARE STILL BASED ON ITS AGING VAX MINICOMPUTER LINE WHILE SALES OF SOME OF ITS NEWER SMALLER MODELS HAVE RISEN MORE SLOWLY THAN EXPECTED CHIEF AMONG THESE ARE WORKSTATIONS AND OTHER MODELS BASED ON ITS NEW ULTRAFAST ALPHA COMPUTER CHIP THOUGH ALPHA PRODUCTS HAVE GOTTEN RAVE TECHNICAL REVIEWS THEIR SALES HAVE YET TO TAKE OFF AS PLANNED SAYS LARS MIERITZ OF A UNIT OF MARKET RESEARCHER INTERNATIONAL DATA CORP PART OF THE PROBLEM MR MIERITZ SAYS IS MARKETING AND COMMUNICATION SNAGS WITHIN DIGITALEUROPE HE SAYS HE SOMETIMES FINDS HE CAN GET TECHNICAL DATA ON NEW DIGITAL PRODUCTS FASTER THAN THE COMPANY'S OWN SALES PEOPLE WITH STRONG PRODUCTS HE SAYS DIGITAL CAN PROSPER IF ITS MANAGEMENT PROBLEMS CAN BE OVERCOME OF COURSE MANY OF DIGITAL'S PROBLEMS IN EUROPE ARE CORPORATEWIDE FAILINGS IT WAS LATE TO JUMP INTO THE FASTGROWING PERSONAL COMPUTER MARKET FOR EXAMPLE BUT ADDED PROBLEMS IN EUROPE INCLUDED AN UNHAPPY ACQUISITION IN 1990 OF THE COMPUTER BUSINESS OF GERMANY'S MANNESMANN AG DIFFICULTY CONVERTING MANNESMANN CUSTOMERS TO DIGITAL PRODUCTS AFFECTED FINANCIAL RESULTS AT THE UNIT AND ATE UP MANAGEMENT TIME SAYS PETER J SMITH GROUP VICE PRESIDENT IN EUROPE AND A 1992 ALLIANCE WITH ITALY'S ING C OLIVETTI & CO HAS RESULTED IN DIGITAL'S SELLING FEWER ALPHABASED COMPUTERS THROUGH OLIVETTI THAN PLANNED THOUGH MR SMITH ATTRIBUTES THAT TO THE ECONOMIC AND POLITICAL TURMOIL IN ITALY BUT MR SMITH POINTS OUT SOME BRIGHT SPOTS IN DIGITAL'S EUROPEAN PERFORMANCE ITS PERSONALCOMPUTER BUSINESS HAS BOOMED IN THE PAST TWO YEARS DOUBLING ITS SHARE OF THE PROFESSIONAL PC MARKET IN EUROPE TO ABOUT 25 HE SAYS AND ALPHA SALES THOUGH SLIGHTLY BEHIND PLAN ACCOUNTED FOR ABOUT 10 OF EUROPEAN REVENUE IN THE FISCAL FIRST QUARTER HE INDICATES AND A HIGHER PERCENTAGE IN THE JUSTENDED SECOND QUARTER WE'RE MAKING A LOT OF PROGRESS HE SAYS 9401050077 940105 ANTITRUST ACTION UNLIKELY IN FEDERATED MACY MERGER WASHINGTON A FEDERAL ANTITRUST CHALLENGE TO THE POSSIBLE MERGER OF FEDERATED DEPARTMENT STORES INC AND RH MACY & CO APPEARS UNLIKELY ALTHOUGH NEW YORK OFFICIALS SAID THEY ARE LOOKING INTO THE MATTER THERE'S SO MUCH COMPETITION IN THE RETAIL MARKET IT'S DIFFICULT TO SAY THE ACQUISITION OF DEPARTMENT STORES IS A PROBLEM SAID ONE FEDERAL ANTITRUST OFFICIAL IT MAY BE DIFFICULT TO JUSTIFY ANY GOVERNMENT ACTION ON ANTITRUST GROUNDS IF THERE IS ANY FEDERAL CHALLENGE IT WOULD BE MADE BY THE FEDERAL TRADE COMMISSION RATHER THAN THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION GOVERNMENT OFFICIALS SAID THE FTC HAS HANDLED DEPARTMENTSTORE TRANSACTIONS IN THE PAST NEW YORK ATTORNEY GENERAL G OLIVER KOPPELL SAID WE ARE CAREFULLY LOOKING INTO THIS SITUATION WE ARE CONCERNED ABOUT THE IMPACT ON DEPARTMENT STORE COMPETITION IN THE STATE THE ATTORNEY GENERAL'S OFFICE INVESTIGATED AN UNSUCCESSFUL ATTEMPT BY MACY TO BUY FEDERATED IN 1988 A SPOKESMAN SAID MACY AGREED THEN TO SELL 11 STORES IF IT ACQUIRED FEDERATED 9401050076 940105 ABREAST OF THE MARKET INDUSTRIALS RALLY BY 2730 POINTS ON LATE BURST OF PROGRAM BUYING BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK A LATE BURST OF PROGRAM BUYING LEFT BLUE CHIPS WITH THEIR BIGGEST GAIN IN SEVEN SESSIONS ECONOMICALLY SENSITIVE STOCKS LED THE ADVANCE AS THE DOW JONES INDUSTRIAL AVERAGE RALLIED 2730 OR 073 TO 378390 BROADER INDEXES WERE HIGHER BUT LAGGED BEHIND THE INDUSTRIAL AVERAGE CATERPILLAR ROSE 1 5/8 TO 91 INTERNATIONAL PAPER CLIMBED 1 5/8 TO 69 5/8 AND SEARS ROEBUCK & CO ADVANCED 2 1/8 TO 53 3/8 OBSERVERS TIED MUCH OF THE LATE BUYING TO INSTITUTIONAL INVESTORS REINVESTING CASH RAISED BY STOCK SALES LATE LAST WEEK AND DEPLOYING NEW MONEY THEY RECEIVED AT THE START OF THE YEAR PHILIP ROTH A TECHNICAL ANALYST AT DEAN WITTER REYNOLDS SAID EARLY JANUARY IS THE STRONGEST PERIOD OF THE YEAR FOR INFLOWS OF NEW CAPITAL TO MONEY MANAGERS SUCH AS THOSE AT PENSION FUNDS THE MARKET WAS HIGHER ALMOST ALL DAY HELPED MAINLY BY RENEWED GAINS IN THE BOND MARKET PLUNGING BOND PRICES MONDAY HAD LIFTED THE YIELD TO A MORE THAN FOURMONTH HIGH THE STANDARD & POOR'S 500STOCK INDEX INCREASED 145 OR 031 TO 46689 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 060 OR 023 TO 25887 AND THE DOW JONES EQUITY MARKET INDEX ADDED 112 OR 025 TO 44197 VOLUME WAS 322450880 UP FROM MONDAY'S 269161230 THERE WERE 1204 ADVANCERS AND 918 DECLINERS THE NASDAQ COMPOSITE INDEX ADVANCED 352 OR 046 TO 77428 BUOYED BY TECHNOLOGY ISSUES APPLE COMPUTER JUMPED 1 5/8 TO 31 1/2 AIDED BY SEVERAL RECENT NEW PRODUCT ANNOUNCEMENTS INTEL GAINED 2 1/2 TO 63 3/4 AND 3COM RALLIED 2 TO 48 3/4 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX CREPT UP 012 OR 003 TO 47736 ITS NINTH STRAIGHT DAILY ADVANCE RETAILING STOCKS WERE MOSTLY HIGHER NORDSTROM JUMPED 1 1/8 TO 33 1/8 ON NASDAQ AND JC PENNEY ADDED 1 7/8 TO 53 ON THE BIG BOARD LIMITED THOUGH LOST 1/4 TO 16 7/8 SHARES OF THE BIG THREE US AUTO MAKERS WERE HIGHER AFTER A FLOOD OF NEWS MUCH OF IT FUNNELED THROUGH THE DETROIT AUTO SHOW CHRYSLER JUMPED 2 1/2 TO 56 GENERAL MOTORS GAINED 1 3/8 TO 56 3/4 AND FORD MOTOR ADDED 1/2 TO 63 7/8 GM SAID ITS EXECUTIVES WON'T RECEIVE BONUSES FOR 1993 BECAUSE OF THE COMPANY'S LACKLUSTER RESULTS CHRYSLER SAID ITS MARKET SHARE CLIMBED TO 145 LAST YEAR A 23YEAR HIGH SEPARATELY GM SAID ITS US CAR SALES ROSE 46 IN LATE DECEMBER WHILE FORD REPORTED A DECREASE OF 156 CML GROUP CONTINUED TO SLUMP LOSING 4 TO 18 ON VOLUME OF ALMOST 71 MILLION SHARES THE COMPANY SAID IT KNOWS OF NO CORPORATE EVENT TO ACCOUNT FOR THE DROP THE STOCK LOST 1 5/8 MONDAY AFTER THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED THAT SOME INVESTORS ARE WORRIED THE ACTON MASS MAKER OF NORDICTRACK EXERCISE EQUIPMENT WILL BE UNABLE TO SUSTAIN ITS RECENT GROWTH CML SAID ITS NOVEMBER AND DECEMBER SALES GAINED 20 FROM A YEAR AGO AND NOTED IT IS CONTINUING A STOCKREPURCHASE PROGRAM TIME WARNER DROPPED 2 1/4 TO 41 7/8 ALEX BROWN & SONS TRIMMED ITS RATING ON THE NEW YORK MEDIA COMPANY TO BUY FROM STRONG BUY ANALYST DREW MARCUS IN PART SAID NEW CABLE TELEVISION REGULATIONS AND THE COMPANY'S AGGRESSIVE DEVELOPMENT SPENDING WILL HURT RESULTS AT ITS CABLE SYSTEMS MCI COMMUNICATIONS LOST 1 7/8 TO 26 5/8 ON NASDAQ AFTER THE WASHINGTON COMPANY FORMALLY UNVEILED ITS PLANS TO UPGRADE ITS DATA TRANSMISSION CAPABILITIES AND CREATE A LOCAL TELEPHONE SERVICE NETWORK THE STOCK HAD RALLIED EACH DAY SINCE THURSDAY WHEN THE WALL STREET JOURNAL INITIALLY REPORTED MCI'S PLANS TO ENTER THE LOCAL BELL MARKET MCI'S PLANS HELPED TO LIFT SHARES OF COMPANIES THAT MIGHT PROVIDE EQUIPMENT FOR ITS NETWORK UPGRADE DSC COMMUNICATIONS ADDED 4 1/8 TO 64 5/8 AND NEWBRIDGE NETWORKS GAINED 3 1/4 TO 57 1/2 BOTH ON NASDAQ BUT BABY BELL STOCKS SLUMPED AMERITECH LOST 1 1/8 TO 74 1/2 BELLSOUTH DROPPED 1 7/8 TO 54 7/8 BELL ATLANTIC DECLINED 1 3/8 TO 56 1/2 AND SOUTHWESTERN BELL EASED 3/8 TO 40 5/8 CHEYENNE SOFTWARE DROPPED 1 1/4 TO 25 3/4 ON THE AMEX INVESTORS ARE SAID TO BE CONCERNED ABOUT A MANAGEMENT CHANGE ANNOUNCED IN THE FALL AND ABOUT INCREASING COMPETITION IN THE BUSINESS OF PROVIDING BACKUP SOFTWARE FOR COMPUTER NETWORK SYSTEMS THE STOCK WAS AT 38 AS RECENTLY AS MIDOCTOBER AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO ADDED 1 1/4 TO 66 3/4 AS THE MEXICAN ARMY APPEARED TO REGAIN CONTROL OF MOST TOWNS TAKEN BY ARMED PEASANTS EARLIER THIS WEEK WORRIES ABOUT THE CONFLICT DEPRESSED THE ADRS MONDAY TOYS R US FELL AGAIN SLIPPING 1 1/8 TO 38 7/8 THE STOCK LOST 7/8 MONDAY AFTER THE PARAMUS NJ COMPANY RELEASED SALES RESULTS FOR THE EIGHT WEEKS LEADING UP TO CHRISTMAS ALTHOUGH RESULTS FROM US STORES OPEN AT LEAST A YEAR GAINED 74 SUCH SALES OVERSEAS SLID 23 IN LOCAL CURRENCIES AND 79 IN DOLLARS BOSTON CHICKEN JUMPED 1 1/4 TO 38 ON NASDAQ AFTER THE NAPERVILLE ILL RESTAURANT COMPANY AGREED TO BUY 84 ROY ROGERS LOCATIONS FROM HARDEE'S FOOD SYSTEMS FOR 223 MILLION MOST LOCATIONS WILL BE CONVERTED TO THE BOSTON CHICKEN FORMAT 9401050075 940105 WORLD MARKETS LONDON STOCKS SLIP AFTER REBOUNDING FROM DIVE HONG KONG SINGAPORE BOURSES NOTCH NEW HIGHS A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS WEAKENED THOUGH THEY RECOVERED FROM A ROLLERCOASTER RIDE THAT SENT PRICES CAREENING DOWN 11 AT ONE POINT FRANKFURT EQUITIES FELL ALSO FOLLOWING A BUMPY SESSION HONG KONG SHARES AGAIN SOARED TO NEW HIGHS ON RECORD TURNOVER EVEN AFTER PROFITTAKING CUT SOME GAINS AND SINGAPORE STOCKS ADVANCED STRONGLY TO A SECOND CONSECUTIVE RECORD BUT THE TOKYO MARKET FIZZLED ON PERSISTENT UNCERTAINTIES ABOUT JAPANESE POLITICS AND THE ECONOMY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11148 UP 058 REFLECTING HIGHER MARKETS IN ALL REGIONS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 31352 UP 1230 OR 41 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 19 GAIN IN ITS LOCAL CURRENCY ENTERTAINMENT STOCKS TRAILED AT 17029 DOWN 457 OR 26 WITH TIME WARNER OF THE US SLIDING 48 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DECLINED 99 POINTS TO 34085 THOUGH THIS REPRESENTED A BIG REBOUND FROM A 38POINT LOSS DURING THE DAY THE FT 30STOCK INDEX FELL 75 POINTS TO 25520 VOLUME WAS 107 BILLION SHARES COMPARED WITH 2506 MILLION SHARES IN THE PREVIOUS SESSION VOLUME WAS FAIRLY HEAVY AS FUND MANAGERS RETURNED FROM THE HOLIDAYS IN FULL FORCE TO ACTIVE MANAGEMENT OF THEIR PORTFOLIOS PRICES OPENED HIGHER BUT QUICKLY FELL AS THE BRITISH GOVERNMENT BOND MARKET TUMBLED IN REACTION TO THE PREVIOUS DAY'S SHARP SELLOFF IN US TREASURYS ON FEARS ABOUT RISING US RATES SOME INVESTORS BEGAN TO PANIC FOR FEAR BRITISH INTEREST RATES TOO WERE HEADED HIGHER WHILE OTHERS DISMISSED THIS CONCERN SAYING THEY EXPECTED A BRITISH LENDINGRATE CUT SHORTLY LONDON STOCKS' LATE TURNAROUND WAS HELPED BY YESTERDAY'S FIRM OPENING IN BOTH THE US BOND AND STOCK MARKETS IN FRANKFURT THE DAX 30STOCK INDEX FELL 1440 POINTS TO 225358 RETREATING FROM RECORD TERRITORY WITH THE POSTHOLIDAY RETURN OF LONDON INVESTORS THE FRANKFURT MARKET EXPERIENCED SOME PROFITTAKING IN THE AFTERMATH OF THE 24 SURGE IN YEAREND PRICES NEVERTHELESS VOLUME WAS MODERATE WITH LITTLE CORPORATE NEWS TO INSPIRE THE MARKET WHICH WAS PRESSURED BY PRELIMINARY DATA THAT SHOWED WESTERN GERMAN INDUSTRIAL OUTPUT IN NOVEMBER FELL MORE THAN EXPECTED FROM THE PREVIOUS MONTH AND FROM A YEAR EARLIER MOREOVER GERMAN UNEMPLOYMENT CLIMBED TO A RECORD IN DECEMBER PARTICIPANTS ALSO WERE DIVIDED ABOUT THE LIKELIHOOD THAT THE GERMAN CENTRAL BANK WILL CUT KEY INTEREST RATES TOMORROW TO SPUR THE ECONOMY IN PARIS STOCKS ALSO RECOVERED SOME LOST GROUND LATE IN THE DAY BUT STILL FINISHED IN THE RED AS A TECHNICAL CORRECTION PARED RECENT GAINS THOUGH SENTIMENT WAS STILL CONSIDERED BULLISH OVERALL SEVERAL OTHER EUROPEAN STOCK EXCHANGES ALSO CONSOLIDATED IN ACTIVE TRADING WITH POSITIVE AND NEGATIVE FACTORS OFFSETTING BIG MOVEMENTS AND LEAVING PRICES MIXED IN MILAN STOCKS FELL PUSHED DOWN BY TECHNICAL AND POLITICAL FACTORS SOME INVESTORS WERE LIGHTENING OR CLOSING POSITIONS AHEAD OF AN ITALIAN HOLIDAY TOMORROW AND OTHERS TOOK PROFITS AMID RENEWED UNCERTAINTIES ABOUT A NATIONAL ELECTION DATE IN MADRID SHARES FELL HIT BY PROFITTAKING AND GENERALLY WEAK PERFORMANCES ON OTHER EUROPEAN BOURSES BUT IN STOCKHOLM PRICES ROSE BROADLY IN A CHOPPY SESSION WITH LARGE PRICE SWINGS THE MARKET OPENED HIGHER AND THE BELLWETHER INDEX CLIMBED TO A NEW HIGH BEFORE DRIFTING DOWN VOLUME ROSE UNEXPECTEDLY AS THE RANKS OF INVESTORS WERE THINNED AHEAD OF A SWEDISH HOLIDAY TOMORROW IN TOKYO THE NIKKEI 225STOCK INDEX FELL 4750 POINTS TO 1736974 AFTER A 14521POINT RISE LAST THURSDAY BOTH IN HALFDAY SESSIONS THE MARKET WAS CLOSED LAST FRIDAY AND MONDAY FOR YEAREND HOLIDAYS ON WEDNESDAY THE NIKKEI INDEX ROSE 21452 POINTS TO CLOSE THE MORNING SESSION AT 1758426 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A LIGHT 110 MILLION SHARES DOWN FROM 1213 MILLION SHARES IN THE PREVIOUS ABBREVIATED SESSION LOSERS OUTNUMBERED GAINERS 529357 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 1004 POINTS LAST THURSDAY ROSE 666 TO 144597 TOKYO INVESTORS WERE WORRIED BECAUSE OF DELAYS IN PARLIAMENTARY CONSIDERATION OF JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA'S POLITICALREFORM PACKAGE THIS PROMPTED SPECULATION THAT THE LEGISLATURE WOULD BE DISSOLVED AND A SNAP ELECTION CALLED THE CURRENT SESSION OF THE DIET OR PARLIAMENT RUNS THROUGH JAN 29 THE MARKET ANTICIPATED LITTLE CHANCE OF A GOVERNMENT ECONOMIC STIMULUS UNTIL THE POLITICAL PROPOSALS ARE RESOLVED BUCKING THE MARKET'S DOWNWARD TREND WERE EXPORTORIENTED SHARES RANGING FROM ELECTRONICS TO AUTO MAKERS BECAUSE OF FAVORABLE FOREIGNCURRENCY DEALINGS IN HONG KONG THE HANG SENG INDEX VAULTED UP MORE THAN 512 POINTS IN MORNING DEALINGS ON A CONTINUED INFLUX OF OVERSEAS BUYING THE SUBSTANTIAL GAINS WERE LARGELY ERASED BY PROFITTAKING IN THE AFTERNOON YET THE INDEX STILL FINISHED WITH A GAIN OF 1146 POINTS OR ALMOST 1 TO 1220109 FOLLOWING A 17 SURGE MONDAY BULLISHNESS WAS UNABATED AS INVESTORS SWARMED TO BLUE CHIPS FUELED BY A PROPERTY COMPANY'S MORE THAN DOUBLING OF ITS NET ASSET VALUE AMID BOOMING PROPERTY AND STOCK MARKETS UTILITIES TURNED IN THE BIGGEST GAINS IN SINGAPORE SHARES CLIMBED 12 AS HEAVY BUYING BOOSTED SOME BLUE CHIPS THE BENCHMARK INDEX REACHED A SECOND CONSECUTIVE HIGH AFTER LATE SELLING WAS EASILY ABSORBED BUYING GENERALLY WAS LED BY SMALL INVESTORS THOUGH INSTITUTIONS PURCHASED BLUE CHIPS TO BALANCE THEIR PORTFOLIOWEIGHTING TARGETS AFTER THE MARKET'S CAPITALIZATION EXPANDED SHIPYARD STOCKS WERE AMONG THE TOP GAINERS IN SYDNEY SHARE PRICES CLOSED MIXED WITH GOLD AND RESOURCES STOCKS HIGHER BUT SOME LARGE INDUSTRIAL STOCKS BANKS AND MEDIA SHARES WEAKER IN BANGKOK STOCKS SKYROCKETED 42 IN ACTIVE TRADING JUMPING 7088 POINTS ON THE SET INDEX TO A RECORD 175373 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 9401050073 940105 REVIEW & OUTLOOK EDITORIAL DEMOCRACY DERAILED ANY DOUBTS ABOUT CHINA'S PLANS FOR HONG KONG ENDED LAST WEEK BEIJING ANNOUNCED THAT ON JUNE 30 1997 THE DAY BRITAIN HANDS OVER THE KEYS TO THE COLONY IT WILL DISSOLVE THE LEGISLATURE AND OTHER ELECTED BODIES IT ALSO SAID IT WILL SUBJECT EVERY EXISTING HONG KONG LAW TO REVIEW BY THE NATIONAL PEOPLE'S CONGRESS IN THE LOCAL LINGO THE THROUGH TRAIN PAST 1997 HAS BEEN DERAILED THE CATALYST FOR CHINA'S ACTION WAS HONG KONG GOVERNOR CHRIS PATTEN'S DECISION A FEW WEEKS AGO TO PROCEED WITH SEVERAL OF HIS PROPOSALS FOR CONSTITUTIONAL REFORM SEVENTEEN ROUNDS OF SINOBRITISH TALKS OVER SIX MONTHS HAD FAILED TO PRODUCE MORE THAN NAMECALLING FROM BEIJING ARGUING THAT TIME WAS SHORT AN EXASPERATED MR PATTEN DECIDED TO MOVE AHEAD WITH MINOR ISSUES LEAVING THE CONTROVERSIAL ONES FOR FURTHER DISCUSSION JUST WHAT ARE THE RADICAL REFORMS AT ISSUE HERE ONE LOWERS THE VOTING AGE FROM 21 TO 18 THE AGE AT WHICH MAINLAND CHINESE HAVE THE RIGHT SUCH AS IT IS TO VOTE ANOTHER ABOLISHES APPOINTED SEATS IN NEIGHBORHOOD COUNCILS IN FAVOR OF LETTING CITIZENS CHOOSE WHO WILL SPEAK FOR THEM ON SUCH ISSUES AS LOCAL PARKING OR NOISE POLLUTION MR PATTEN'S THIRD PROPOSAL IS TO CONVERT SOME LEGISLATIVE SEATS FROM DOUBLESEAT CONSTITUENCIES TO SINGLESEAT A MOVE LIKELY TO MEAN THE ELECTION OF MORE DEMOCRATS SINCE THE PROBEIJING CANDIDATES TO DATE HAVE HAD A HARD TIME GETTING PAST SECOND PLACE THAT'S IT NONE OF THIS ADDS UP TO ANYTHING CLOSE TO FULL DEMOCRACY ALL ARE REASONABLE SUBJECTS FOR DISCUSSION UNDER THE 1984 SINOBRITISH AGREEMENT THAT LEAVES HONG KONG'S CONSTITUTIONAL DEVELOPMENT TO NEGOTIATION OF COURSE IT'S IMPOSSIBLE TO NEGOTIATE IF ONE SIDE REFUSES TO TALK OR IF IT MAKES SUCH LUDICROUS STATEMENTS AS ACCUSING MR PATTEN OF REVIVING GUNBOAT DIPLOMACY OR INSTRUCTING HIM THAT HONG KONG'S POLITICAL STRUCTURE IS A CHINESE DOMESTIC AFFAIR AND SO NONE OF HIS BUSINESS WE'VE NEVER BEEN GREAT FANS OF THE THROUGHTRAIN APPROACH WE'D PREFER AN EXPRESS TRAIN TO DEMOCRACY FOR HONG KONG'S PEOPLE AND CHINA'S TOO THE CURRENT STRATEGY CHUGS ALONG AT HALFSPEED TO AN UNCERTAIN DESTINATION THAT SAID OUR ONLY QUARRELS WITH MR PATTEN'S REFORM PROPOSALS ARE THAT THEY SHOULD HAVE BEEN BROACHED YEARS AGO AND DON'T GO FAR ENOUGH TOWARD CREATING TRULY DEMOCRATIC INSTITUTIONS STILL WE AGREE IN PRINCIPLE WITH MR PATTEN AND APPLAUD HIS DETERMINATION TO STRENGTHEN THE INSTITUTIONS MOST LIKELY TO SERVE AND PROTECT HONG KONG AFTER 1997 WE ALSO APPLAUD HIS ATTEMPTS TO BRING HONG KONG PEOPLE INTO THE DISCUSSION ABOUT HOW HONG KONG WILL BE RUN AFTER 1997 CONTRARY TO BEIJING'S CONTENTION THAT THIS IS A MATTER STRICTLY BETWEEN IT AND LONDON ECONOMICALLY HONG KONG AND CHINA ARE ALREADY RUNNING ON THE SAME RAILS THE HONG KONG STOCK MARKET WHICH BROKE THE 12000 MARK MONDAY APPARENTLY ISN'T MUCH WORRIED BY BEIJING'S TOUGH TALK POLITICALLY HOWEVER HONG KONG'S BEST BET IS TO SAY GOODBYE TO THE THROUGH TRAIN AND WELCOME THE CHANCE TO MOVE AHEAD QUICKLY ON A SEPARATE TRACK IF IT DOES IT'S JUST POSSIBLE THAT HONG KONG'S DEMOCRATS EVENTUALLY WILL PEEK OUT FROM THE CABOOSE TO SEE CHINA CHUGGING ALONG AFTER THEM 9401050072 940105 WHO'S NEWS TWA SAYS HOWARD QUIT AS CHAIRMAN EXALLSTATE EXECUTIVE IS NAMED TO POST BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL MT KISCO NY TRANS WORLD AIRLINES IN A SURPRISE MANAGEMENT SHAKEUP SAID WILLIAM R HOWARD RESIGNED JUST SIX MONTHS AFTER BEING NAMED CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY SAID ITS BOARD WHICH IS CONTROLLED BY TWA'S CREDITORS NAMED DONALD F CRAIB JR 68 YEARS OLD TO SUCCEED MR HOWARD MR CRAIB A FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ALLSTATE INSURANCE GROUP WAS ONE OF 15 NEW DIRECTORS NAMED TO TWA'S BOARD AFTER THE AIRLINE EMERGED FROM FEDERAL BANKRUPTCYLAW PROTECTION THIS FALL TWA THE NATION'S SEVENTHLARGEST AIRLINE SAID THE BOARD ALSO ACCEPTED THE RESIGNATION OF GLENN ZANDER WHO WAS A VICE CHAIRMAN THE COMPANY SAID MR ZANDER 48 CITED PERSONAL REASONS FOR HIS DEPARTURE MR ZANDER A TWA VETERAN OF MORE THAN 20 YEARS WAS WIDELY BELIEVED TO BE DISAPPOINTED THIS SUMMER THAT HE WAS PASSED OVER FOR THE CHIEF EXECUTIVE'S JOB MESSRS HOWARD ZANDER AND CRAIB COULDN'T BE REACHED FOR COMMENT ROBIN WILSON ALSO A VICE CHAIRMAN AND CHIEF OPERATIONS OFFICER RETAINS THOSE POSITIONS AND MR ZANDER AND MR HOWARD WILL CONTINUE TO SERVE AS CONSULTANTS FOR TWA THE AIRLINE SAID ONE TWA MANAGER SAID THERE HAD BEEN A GROWING FEELING IN RECENT MONTHS THAT MR HOWARD 72 WASN'T A STRONG ENOUGH LEADER TO HELP THE LONGSTRUGGLING CARRIER UNDER HOWARD WE WERE KIND OF DRIFTING OVER OUR OWN TOW ROPE THE TWA MANAGER SAID HOWEVER WILLIAM COMPTON A TWA DIRECTOR SAID THE BOARD HAD NO COMPLAINTS WITH MR HOWARD'S MANAGEMENT HE SAID THAT MR HOWARD LEFT VOLUNTARILY AND HAD TOLD DIRECTORS IN RECENT WEEKS THAT HE FELT HE HAD BASICALLY ACCOMPLISHED HIS MISSION OF NAVIGATING THE COMPANY OUT OF BANKRUPTCY COURT SAID MR COMPTON WHO IS ALSO THE HEAD OF THE PILOTS UNION AT TWA WE'RE PERFORMING BETTER THAN PLANNED OPERATIONALLY AND FINANCIALLY THAT MAY BE BUT TWA WAS ONE OF THE ONLY MAJOR CARRIERS TO REPORT A THIRDQUARTER LOSS CITING INTERNATIONAL FARE WARS AND A SLOWERTHANEXPECTED EMERGENCE FROM BANKRUPTCY PROCEEDINGS TWA POSTED A THIRDQUARTER LOSS OF 617 MILLION ON AN OPERATING BASIS A SLIMMEDDOWN TWA WAS ABLE TO NEARLY HALVE ITS LOSSES FROM THE 1992 PERIOD BY CUTTING EXPENSES PARTLY BY WINNING BIG WAGE CONCESSIONS FROM EMPLOYEES IN EXCHANGE FOR A 45 STAKE IN THE COMPANY MR HOWARD AND MR ZANDER WEREN'T GOING TO PULL A RABBIT OUT OF THE HAT SAID KEVIN MURPHY A MORGAN STANLEY & CO ANALYST NOTING THE COMPANY'S LOSSES THEY WERE REARRANGING DECK CHAIRS ON THE TITANIC IN JULY TWA RECRUITED MR HOWARD WHO HAD ONCE BEEN A CANDIDATE FOR A FAILED EMPLOYEE BUYOUT ATTEMPT AT UAL CORP'S UNITED AIRLINES TO GIVE THE COMPANY A SEASONED INDUSTRY EXECUTIVE AT THAT TIME MORALE HAD SOURED CONSIDERABLY UNDER TWA'S FORMER CHAIRMAN CARL ICAHN BUT ANALYSTS IMMEDIATELY QUESTIONED WHETHER MR HOWARD'S BACKGROUND WAS ADEQUATE FOR THE TASK MR HOWARD HAD PREVIOUSLY BEEN CHAIRMAN AND CHIEF EXECUTIVE OF PIEDMONT AVIATION INC A HEALTHY REGIONAL CARRIER THAT WAS ACQUIRED BY USAIR GROUP INC IN 1987 IN A STATEMENT RELEASED YESTERDAY THE COMPANY CHARACTERIZED MR HOWARD'S ARRIVAL AT TWA AS A MOVE DESIGNED TO OVERSEE THE AIRLINE'S TRANSITION OUT OF BANKRUPTCY HOWEVER IN AN INTERVIEW IN JULY MR HOWARD WHILE NOT SPECIFYING THE PRECISE LENGTH OF HIS EXPECTED TENURE AT TWA SAID FIVE YEARS IS PROBABLY A GOOD GUESS 9401050071 940105 LEISURE & ARTS BOOKSHELF CREATING THE SANDWICH AND LOSING AMERICA BY LEE LESCAZE BY CONVENTIONAL WISDOM THE EARL OF SANDWICH WAS A NOTABLE FAILURE HE STANDS CHARGED WITH PLAYING A MAJOR ROLE IN BRITAIN'S LOSS OF AMERICA WITH DEGRADING BRITAIN'S PROUD ROYAL NAVY AND WITH PASSIONS FOR WOMEN AND GAMBLING THAT LED HIM INTO DEBAUCHERY STANDARD REFERENCE WORKS ARE UNKIND UNPOPULAR AND PROLIFIGATE SAYS THE COLUMBIA ENCYCLOPEDIA THE ENCYCLOPEDIA AMERICANA IS EVEN HARSHER DECLARING THAT PERHAPS NO MAN OF THE 18TH CENTURY WAS HELD IN MORE BITTER CONTEMPT IN ENGLAND EVEN HIS ENDURING GASTRONOMIC INVENTION REPORTEDLY WAS BORN FROM HIS BASE PASSIONS SO LOATH WAS THE EARL TO MISS A MOMENT OF GAMBLING ACTION THAT HE HAD BEEF PUT BETWEEN SLICES OF BREAD IN ORDER TO EAT WITHOUT LEAVING HIS SEAT AT THE TABLES NOT TRUE SAYS NAM RODGER IN HIS BIOGRAPHY THE INSATIABLE EARL A LIFE OF JOHN MONTAGU FOURTH EARL OF SANDWICH 17181792 NORTON 425 PAGES 30 MR RODGER DEFENDS HIS SUBJECT ON ALL FRONTS IN AN EFFORT TO REHABILITATE THE EARL'S SHABBY REPUTATION WHAT OF THE TRAVEL BOOK WHERE THE SANDWICH STORY ORIGINATED MERE GOSSIP HE SNIFFS MORE LIKELY MR RODGER WRITES THE EARL HIT UPON HIS IDEA BECAUSE HE NEEDED SUSTENANCE WHILE WORKING LONG HOURS AT HIS DESK ON SANDWICH'S PURSUIT OF WOMEN MR RODGER CONCEDES SOME GROUND DESPITE THE EARL'S LONG HOURS AT HIS DESK MR RODGER ADMITS HE WAS A BIT OF A RAKE BUT ARGUES THAT HIS LIBERTINAGE PALES BY COMPARISON WITH MANY CONTEMPORARY NOBLEMEN THIS IS LIKE A CLINTON BIOGRAPHER SAYING HE'S NO TED KENNEDY STILL SANDWICHES AND WOMEN DON'T MUCH CONCERN MR RODGER INDEED IN A BOOK FULL OF DETAIL ON OTHER SUBJECTS HE GIVES LESS THAN A PAGE TO THE FAMOUS SANDWICH MR RODGER'S PASSION AND ONE OF SANDWICH'S IS THE ROYAL NAVY HE IS A SPECIALIST ON 18THCENTURY NAVAL HISTORY AND THE AUTHOR OF THREE PREVIOUS BOOKS INCLUDING THE WIDELY PRAISED THE WOODEN WORLD AN ANATOMY OF THE GEORGIAN NAVY SANDWICH WAS TWICE SECRETARY OF STATE AND THREE TIMES FIRST LORD OF THE ADMIRALTY THE ROUGHLY 20 YEARS THAT HE SPENT AT THE ADMIRALTY WERE FULL OF DRAMATIC CHALLENGES CULMINATING IN THE WAR IN WHICH BRITAIN LOST AMERICA WITH FAR MORE DETAIL AND GREATER PASSION THAN HE DEVOTES TO SANDWICH'S PERSONAL LIFE MR RODGER DEFENDS THE EARL'S RECORD IN OFFICE THE INSATIABLE EARL IS A SCHOLARLY WORK BUOYED BY WIDE RESEARCH AND ARMED WITH FLOTILLAS OF FOOTNOTES MR RODGER MOST STRENUOUSLY MAKES THE CASE THAT FAR FROM DEGRADING THE ROYAL NAVY SANDWICH'S LEADERSHIP INCREASED THE FIGHTING CAPACITY OF THE FLEET THERE IS HOWEVER NO GETTING AROUND THE FACT THAT SANDWICH WAS AT THE HELM WHEN THE AMERICAN COLONIES WON THEIR WAR FOR INDEPENDENCE TOO MANY HISTORIANS MR RODGER SAYS HAVE SEEN THE AMERICAN WAR IN ISOLATION MORE PROPERLY IT SHOULD BE VIEWED AS PART OF A WORLDWIDE STRUGGLE BRITAIN WAS FIGHTING AGAINST HER ENEMIES FRANCE AND SPAIN IN THAT LIGHT HE CONCLUDES IF IT IS TRUE AS IN A CERTAIN SENSE IT IS THAT SANDWICH AS THE RESPONSIBLE MINISTER FOR THE NAVY WAS THE MAN WHO LOST THE AMERICAN WAR IT MUST BE TRUE IN THE SAME SENSE THAT HE WAS THE MAN WHO SAVED CANADA INDIA AND THE WEST INDIES MR RODGER RELYING ON NAVAL RECORDS ONLY MADE PUBLIC IN THE 1930S AMONG MANY SOURCES MAKES A STRONG CASE THAT SANDWICH'S PERFORMANCE WAS FAR FROM THE FOLLY THAT 19THCENTURY HISTORIANS WOULD HAVE US BELIEVE I WISH HOWEVER THAT MR RODGER HAD SOMEWHAT RESTRAINED HIS ENTHUSIASM FOR AFFAIRS OF THE ADMIRALTY AND FOUND MORE SPACE IN HIS SOMETIMES SLOWMOVING BIOGRAPHY FOR OTHER ASPECTS OF SANDWICH'S LIFE THE EARL WAS AS NEAR AS 18THCENTURY ENGLISH NOBILITY HAD TO A PROFESSIONAL POLITICIAN OTHER TITLED MEN COULD DABBLE BUT THEY HAD LARGER INCOMES SANDWICH COULD BARELY SUPPORT THE LIFESTYLE HE WAS EXPECTED TO LEAD HE ACTUALLY NEEDED THE SALARIES HIS OFFICES BROUGHT AND WAS FOREVER IN SEARCH OF FUNDS HIS LIFE WAS REPEATEDLY MARKED BY TRAGEDY AS MR RODGER TELLS US ALLTOOBRIEFLY HIS WIFE WENT MAD HIS MISTRESS OF 17 YEARS WAS MURDERED FOUR OF HIS SONS BOTH HIS DAUGHTERSINLAW AND ALL BUT ONE OF HIS GRANDCHILDREN DIED BEFORE HIM SANDWICH LOVED MUSIC HANDEL IN PARTICULAR AND PLAYED A MAJOR ROLE IN THE GREAT WESTMINSTER ABBEY HANDEL COMMEMORATION OF 1784 WHICH SOME HISTORIANS HAVE CALLED THE SINGLE MOST IMPORTANT EVENT IN ENGLISH MUSIC DURING THE 18TH CENTURY MR RODGER GRACEFULLY NOTES THAT THE TRADITION OF PERFORMING HANDEL AS IN THE INNUMERABLE CHRISTMASTIME MESSIAHS THROUGHOUT THE UNITED KINGDOM MAY BE SANDWICH'S GREATEST LEGACY APART FROM THE DELI COUNTER SANDWICH ALSO HAD A REPUTATION AS A WIT BUT NOT MUCH OF IT SHOWS UP IN MR RODGER'S PAGES IN DEFENDING SANDWICH MR RODGER HAS I'M AFRAID NOT DONE MUCH TO MAKE HIM LIVELY EVEN THOUGH THE EARL MUST HAVE BEEN A FASCINATING MAN IT'S ALSO A MYSTERY WHY MR RODGER AFTER WRITING A BOOK MINIMIZING SANDWICH'S APPETITES EXCEPT THAT FOR HIGH OFFICE TITLED IT THE INSATIABLE EARL 9401050070 940105 MCI PROPOSES A 20 BILLION CAPITAL PROJECT INVESTORS PARTNERS SOUGHT TO UPGRADE NETWORKS BATTLE THE BABY BELLS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MCI COMMUNICATIONS CORP'S CHAIRMAN VOWING TO WAGE THE BIGGEST WAR WE POSSIBLY CAN UNVEILED A SIXYEAR 20 BILLION SPENDING PLAN AIMED AT UPGRADING THE COMPANY'S NETWORKS AND BREAKING THE BABY BELLS' MONOPOLY OVER LOCAL PHONE SERVICE THE CAPITAL INVESTMENT IS ROUGHLY TWICE WHAT MCI HAD PREVIOUSLY EXPECTED TO SPEND BY THE END OF THE DECADE AND IT WILL UNDERWRITE THE COMPANY'S PREPARATIONS FOR THE MULTIMEDIA AGE MCI CHAIRMAN BERT C ROBERTS SAID THE COMPANY IS DISCUSSING JOINT VENTURES AND POSSIBLE EQUITY INVESTMENTS WITH CABLE COMPANIES AND WIRELESS CARRIERS TO HELP RAISE MONEY FOR THE HUGE CAMPAIGN BUT MCI'S CAMPAIGN COULD PROVE TO BE RISKY AND EXPENSIVE UNLEASHING A FIREFIGHT FOR LOCAL PHONE SERVICE AND ACCELERATING COUNTERMOVES BY THE BABY BELLS WHICH ARE BENT ON TAKING ON MCI AND OTHERS IN THE MARKET FOR LONGDISTANCE SERVICE INVESTORS APPARENTLY WARY OF A SOONERTHANEXPECTED ENTRY BY THE BELLS INTO A LONGDISTANCE MARKET THAT NOW HAS ONLY THREE MAIN PLAYERS DROVE DOWN MCI'S SHARE PRICE AND TRIMMED THE MARKET VALUES OF SOME BABY BELLS AS WELL MCI SHARES FELL 1875 TO 26625 IN NASDAQ STOCK MARKET TRADING ON UNUSUALLY HIGH VOLUME OF 102 MILLION SHARES BELLSOUTH'S STOCK FELL 1875 TO 54875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE WORLD IS COMING APART SAID BLAKE BATH AN ANALYST AT SANFORD C BERNSTEIN & CO HE ADDED THAT WALL STREET HASN'T YET RECOGNIZED THAT MCI IS DEPLOYING ITS CAPITAL IN HIGHLY TARGETED HIGHLY EFFECTIVE FASHION THE MOST PROVOCATIVE PART OF MCI'S STRATEGY WAS THE COMPANY'S PLAN TO SPEND 2 BILLION TO WIRE UP LOCALPHONE ACCESS NETWORKS IN 20 MAJOR MARKETS NOW DOMINATED BY THE SEVEN REGIONAL BELL COMPANIES THESE NEW LOCAL NETWORKS WILL CARRY CORPORATE COMMUNICATIONS TRAFFIC DIRECTLY TO MCI'S LONGDISTANCE LINES CONSTRUCTION OF THE FIRST NETWORK IS ALREADY UNDER WAY IN ATLANTA MR ROBERTS SAID BY ESSENTIALLY DOUBLING ITS CAPITAL PLANS MCI INTENDS TO COMPETE FOR COMMUNICATIONS TRAFFIC ANYWHERE A CUSTOMER DIALS A PHONE SENDS A COMPUTER MESSAGE OR WATCHES A TV PROGRAM THE SECONDLARGEST US LONGDISTANCE COMPANY ISN'T SATISFIED WITH BEING AN ITCH THAT AMERICAN TELEPHONE & TELEGRAPH CO CAN'T SCRATCH WE WANT TO BE A LOCAL PHONE COMPANY AND EXPECT TO BE MR ROBERTS SAID THE MOST IMMEDIATE BENEFIT FROM MCI'S LOCALPHONE PLANS HOWEVER MAY COME IN ITS LONGDISTANCE BUSINESS THE BELL COMPANIES BY VIRTUE OF THEIR MONOPOLY OVER ACCESS TO LOCAL PHONE LINES NOW FORCE MCI TO PAY THEM 45 CENTS OF EACH DOLLAR MCI TAKES IN THE PAYMENTS COVER ACCESS CHARGES FOR LETTING CALLS GO FROM THE MCI NETWORK TO THE PHONES AND COMPUTERS OF LOCAL BELL CUSTOMERS FOR MCI THIS TRANSLATES INTO MORE THAN 5 BILLION A YEAR IN SUCH FEES AND THE NEW VENTURE ANNOUNCED YESTERDAY DUBBED MCI METRO SHOULD BEGIN REDUCING THAT SUM BY 1995 THE COMPANY SAID THE REGIONAL BELL COMPANIES HAVE BEEN PUSHING TO ENTER THE LONGDISTANCE BUSINESS FROM WHICH THEY ARE NOW LEGALLY RESTRICTED THEY WILL USE MCI'S PLAN AS ANOTHER JUSTIFICATION FOR GAINING ACCESS TO THAT MARKET NOW DOMINATED BY AT&T MCI SAID IT WILL SELL LOCALACCESS SERVICES TO ITS RIVALS AT&T AND SPRINT CORP AT THE SAME RATES IT SELLS THEM TO ITSELF AN AT&T SPOKESWOMAN SAID AT&T WOULD WELCOME ANY EFFORTS TO INCREASE LOCAL COMPETITION DOES THAT INCLUDE USING THE LOCAL LINES OF ITS CHIEF RIVAL WE'D CONSIDER ALL ALTERNATIVES SHE SAID SPRINT THE FIRST LONGDISTANCE CARRIER TO INSTALL A FULL FIBEROPTIC NETWORK CALLED MCI'S ANNOUNCEMENT A SLICK ADMISSION OF BEING BEHIND IN TERMS OF TECHNOLOGY DEPLOYMENT BUT SPRINT ADDED THAT MCI'S LOCAL SERVICES FORAY HAS SOME MERIT AS ONE IN A LONG SERIES OF STEPS NECESSARY BEFORE LOCAL COMPETITION WILL EXIST NOTING THE LONGDISTANCE CARRIERS' OPPOSITION TO A BELL ENTRANCE INTO THEIR MARKET AMERITECH CORP A CHICAGOBASED BABY BELL SAID MCI'S ANNOUNCEMENT SHOULD FURTHER ENERGIZE REGULATORS AND POLICY MAKERS THIS INDUSTRY AND COUNTRY URGENTLY NEED ALL OUT COMPETITION IF SUCCESSFUL MCI'S PLAN COULD PROFOUNDLY CHANGE THE WAY CONSUMERS AND BUSINESSES RECEIVE THEIR PHONE SERVICES COMPETITIVE ACCESS PROVIDERS SUCH AS MFS COMMUNICATIONS CO INC OMAHA NEB AND TELEPORT COMMUNICATIONS GROUP OF NEW YORK CURRENTLY OFFER CORPORATIONS ONLY LIMITED LOCAL CONNECTIONS TO LONGDISTANCE COMPANIES THEY ARE SMALL OPERATIONS THAT ARE NO MATCH FOR THE BABY BELLS WHILE MCI HAS GROWN INTO A FAR LARGER RIVAL CHALLENGING AT&T IN LONGDISTANCE SERVICES BUT STATES WOULD HAVE TO SUBSTANTIALLY CHANGE THE WAY THEY REGULATE LOCAL PHONE SERVICES TO LET MCI POSE NEW AND INTENSIFIED COMPETITION ON THE LOCAL FRONT PROGRESS SO FAR HAS BEEN SLOW OF THE ROUGHLY 20 STATES WHERE ALTERNATIVE LOCAL COMPETITION IS CURRENTLY ALLOWED ONLY FOUR NEW YORK MASSACHUSETTS ILLINOIS AND WASHINGTON WILL ALLOW A COMPETITIVE CARRIER TO SELL A FULL RANGE OF SWITCHED SERVICES THAT RIVAL LOCAL PHONE COMPANIES ONE OF OUR PRIMARY RESPONSIBILITIES WILL BE TO HAVE THOSE REGULATIONS CHANGED SAID GARY PARSONS MCI'S EXECUTIVE VICE PRESIDENT WHO WILL ALSO RUN MCI METRO SOMEBODY HAS TO TAKE THE INITIATIVE TO FORCE COMPETITION TO OCCUR IF FULL COMPETITION WERE ALLOWED STATE REGULATORS WOULD HAVE TO ADDRESS NUMEROUS ISSUES NOT THE LEAST OF WHICH IS WHAT HAPPENS WHEN A CUSTOMER CHANGES SERVICE TO A COMPETITIVE CARRIER CAN THE CUSTOMER TAKE HIS REGULAR PHONE NUMBER WITH HIM MR ROBERTS SAID MCI METRO WILL SEEK TO BE A FULL LOCAL PLAYER HANDLING LOCAL PHONE AND DATA TRAFFIC AND EVEN ASSIGNING ITS CUSTOMERS THEIR OWN PHONE NUMBERS EVENTUALLY THE COMPANY PLANS TO EXPAND THESE DIGITAL ONOFF RAMPS TO THE INFORMATION SUPERHIGHWAY TO HUNDREDS OF US CITIES WHERE MCI HAS OLD TELEGRAPH CONDUITS IT BOUGHT IN 1990 FROM THE FORMER WESTERN UNION CORP MUCH OF THE CAPITAL FOR MCI'S PROJECT WILL COME FROM THE 43 BILLION THAT BRITISH TELECOMMUNICATIONS PLC HAS AGREED TO INVEST IN THE COMPANY FOR A 20 STAKE MCI HAS ALREADY RECEIVED ABOUT 830 MILLION OF BT'S PAYMENT AND WILL GET THE REMAINDER WHEN THE DEAL IS CLOSED LATER THIS YEAR MCI HOWEVER ALSO IS ON THE PROWL FOR OTHER PARTNERS WHILE IT DOESN'T SEEM LIKELY THAT IT WOULD SELL ANOTHER SIZABLE EQUITY INVESTMENT MCI IS LOOKING FOR PARTNERS THAT WOULD ACQUIRE STAKES IN JOINT VENTURES THAT COULD INCLUDE THE SALE OF EQUITY IN MCI METRO COMPANY EXECUTIVES SAID MCI'S MR ROBERTS SAID HE IS LOOKING FOR JOINT VENTURES IN THE US AND IN SUCH COUNTRIES AS MEXICO ANNOUNCEMENTS IDENTIFYING SOME OF THESE PARTNERS COULD BE MADE IN A FEW MONTHS HE ADDED MCI ALREADY USES FIBEROPTIC TRANSMISSION THROUGHOUT ALMOST ALL OF ITS LONGDISTANCE NETWORK THE NEW PROJECT CALLS FOR ACCELERATING ITS EFFORTS TO JAZZ UP THE ELECTRONICS FOR SENDING TRAFFIC DOWN THE FIBER NETWORK MCI HAD ORIGINALLY PLANNED TO TAKE UNTIL 2000 TO FULLY INSTALL SOCALLED SYNCHRONOUS OPTICAL NETWORK GEAR WHICH CAN SEND DATA AT A RATE OF AS MANY AS 25 BILLION BITS A SECOND ABOUT 15 TIMES FASTER THAN CURRENT EQUIPMENT NOW IT WILL INSTALL THE SONET EQUIPMENT BY THE END OF THIS YEAR AND BY NEXT YEAR MAKE IMPROVEMENTS TO HANDLE A RATE OF 10 BILLION BITS THIS WILL ALLOW MCI TO HANDLE HUGE TRAFFIC DEMANDS INCLUDING CAPACITYDRAINING VIDEO SIGNALS 9401050069 940105 LEISURE & ARTS THE MOBILE GUIDE THE BANDIT AS HERO BY ANDREW BLUM KIRKLEES ENGLAND WHETHER ROBIN HOOD TRULY LIVED IN THE 12TH 13TH OR 14TH CENTURIES OR IS ONLY A MYTH HIS LEGEND IS GROWING EVEN LARGER THESE DAYS THANKS IN PART TO THE FIRSTEVER PUBLIC WALKING TOURS TO HIS GRAVE A PLACE NEITHER KEVIN COSTNER NOR THE SHERIFF OF NOTTINGHAM COULD EASILY FIND THE TRAIL TO THE GRAVE IS THROUGH FIELDS AND WOODS AND ONTO A PRIVATE ESTATE A FAR CRY FROM NOTTINGHAM OR EVEN SHERWOOD FOREST 85 MILES AND 65 MILES TO THE SOUTH RESPECTIVELY WHERE ROBIN HOOD AND HIS MERRY MEN WERE SAID TO HAVE LIVED AS THEY ROBBED FROM THE RICH AND GAVE TO THE POOR ON THE WAY ONE HEARS STORIES OF HOW THE ESTATE OWNERS USED WARNINGS OF ROBIN HOOD'S GHOST TO KEEP THE RABBLE OUT IN THE 16TH CENTURY AND HOW LATER RAILROAD WORKERS PICKED AT THE GRAVE TO SOOTHE TOOTHACHES MEMBERS OF A FEW LOCAL HISTORICAL SOCIETIES AND OPERATORS OF A ROBIN HOOD TOURIST ATTRACTION IN NOTTINGHAM HAD SEEN THE GRAVE IN PHOTOS AND IN PERSON BUT IT WASN'T UNTIL LAST SUMMER THAT THE PUBLIC GOT A LOOK TWO PUBLIC WALKS LED BY NIGEL BURTON A FRIAR TUCK LOOKALIKE TOOK PLACE JUST BEFORE THE US OPENING OF THE MEL BROOKS FILM ROBIN HOOD MEN IN TIGHTS THE FILM WHICH SPOOFS MR COSTNER'S 1991 ROBIN HOOD PRINCE OF THIEVES BEGAN ITS EUROPEAN RUN IN DECEMBER IN GERMANY AND THE UNITED KINGDOM ROBIN HOOD IS SAID TO HAVE LIVED SOMETIME BETWEEN 1189 AND 1377 THE DILAPIDATED GRAVE CONSISTS OF FOUR STONE WALLS SURROUNDED BY IRON RAILINGS ERECTED LATER TO KEEP OUT RAILROAD WORKERS ON THE INSIDE OF ONE OF THE WALLS IS THE DATE 1247 AND THE INSCRIPTION HERE LIES THE EARL OF HUNTINGDON ONE OF THE NAMES OF ROBIN HOOD IT'S BEEN THIS MYSTERIOUS FOR 700 YEARS HERE RESTS A MAN WHOM NO ONE WROTE OF KNOWING OR SEEING AND THERE IS NO RECORD OF HIS CRIMES BUT HIS NAME IS KNOWN WORLDWIDE MR BURTON A PARTTIME VOLUNTEER RANGER WITH THE KIRKLEES COUNTRYSIDE UNIT THE LOCAL PARKS DEPARTMENT CONDUCTED A TWOHOUR WALK IN THE MORNING AND AGAIN IN THE AFTERNOON FIFTYNINE PEOPLE MOSTLY LOCALS ALONG WITH EIGHT OR NINE AMERICANS PAID 15 ABOUT 230 EACH THE PROCEEDS WENT TO A WOODLANDS TRUST AS THE FIRST GROUP SET OFF ON THE JAUNT MR BURTON BEGAN WEAVING TALES ABOUT THE WEST YORKSHIRE AREA AND EXPLAINED HOW HE GOT ACCESS TO THE GRAVE HE SAID HE FIRST FOUND OUT ABOUT IT THROUGH A HISTORICAL SOCIETY TO WHICH HE BELONGS AND THEN SPENT SEVERAL YEARS WINNING OVER THE ESTATE OWNERS THE ARMYTAGE FAMILY TO THE IDEA OF OPENING THE GRAVE TO THE PUBLIC MR BURTON GOT THE ARMYTAGES' APPROVAL ONLY AFTER ASSURING THEM THAT THE WALK WOULD NOT DISTURB THEIR PRISTINE 12ACRE ESTATE NOR THE FAMILY'S PRIVACY AS SUCH THE MAIN HOUSE A FORMER PRIORY HALL FROM WHERE ROBIN HOOD IS SAID TO HAVE SHOT AN ARROW A QUARTER OF A MILE TO PICK HIS GRAVE SITE IS OFFLIMITS AS LEGEND HAS IT HE WAS ILL AND CAME TO KIRKLEES SO HIS COUSIN WHO WAS A PRIORESS COULD CURE HIM BY BLEEDING INSTEAD THE STORY GOES SHE BLED HIM TO DEATH MR BURTON ACKNOWLEDGED THAT EVEN IF THIS TALE WERE TRUE THE MAN INVOLVED COULD HAVE BEEN SOMEONE OTHER THAN THE ROBIN HOOD THERE WERE PROBABLY MANY SUCH MEN IN ENGLAND IN THOSE DAYS ENGLAND WAS QUITE LAWLESS THEN THE FACT THAT ROBIN HOOD'S IDENTITY AND EVEN VERY EXISTENCE REMAINS MURKY HASN'T HURT BUSINESS AT THE TALES OF ROBIN HOOD A DISNEYLANDLIKE ATTRACTION IN NOTTINGHAM IT HAS DRAWN NO FEWER THAN 850000 VISITORS SINCE OPENING IN 1989 ADMISSION 395 POUNDS ABOUT 6 MARKETING MANAGER STELLA PEARSON SAID THE PARK ENCOURAGES PEOPLE TO COME TO THEIR OWN CONCLUSIONS WITH A SIGN AT THE ENTRANCE READING DECIDE FOR YOURSELF IF HE WAS REAL MS PEARSON'S PERSONAL OPINION IS HE WAS KIND OF A CHARACTER A RASCAL WHO GOT AWAY WITH IT THERE IS EVIDENCE THAT HE WAS A REAL PERSON BUT MS PEARSON IS DOUBTFUL ABOUT THE AUTHENTICITY OF THE GRAVE AT KIRKLEES SHE SAID THAT IT IS DATED AFTER THE FIRST MENTION OF ROBIN HOOD IN FOLK TALES AND THEREFORE HE WAS NOT THE FIRST ROBIN HOOD MR BURTON ADMITTED THAT NO ONE KNOWS FOR SURE HE WAS A CHARACTER MADE UP OF THREE OR FOUR OUTLAWS WHO LIVED IN THAT 170ODD YEAR PERIOD BUT HE ADDED NO ONE ELSE HAS COME FORWARD TO PUBLICLY CLAIM THEY HAVE A GRAVE ONE THING IS CLEAR ALTHOUGH HE HAS TALKED TO THE ARMYTAGE FAMILY ABOUT SPRUCING UP THE GRAVE MR BURTON SAID THERE'S NO CHANCE IT WILL BE TURNED INTO A TALES OF ROBIN HOODTYPE ATTRACTION UNDER THE CURRENT OWNERS NONETHELESS HE HOPES TO CONDUCT MORE WALKS TO THE GRAVE LIKELY ONLY EVERY OTHER YEAR AS THE ARMYTAGES STILL TREASURE THEIR PRIVACY MEANTIME THE SPIRIT OF ROBIN HOOD LIVES ON ONE PERSON ON THE MORNING WALK PAID MR BURTON WITH AN 8 CHECK DRAWN ON AN AMERICAN BANK IT'LL COST US 20 QUID TO CASH IT QUIPPED MR BURTON ROBIN HOOD WOULD HAVE LOVED IT ANYONE INTERESTED IN JOINING ONE OF MR BURTON'S WALKS SHOULD CONTACT HIM AT KIRKLEES COUNTRYSIDE UNIT TUNNEL END CANAL AND COUNTRYSIDE CENTER WATERS ROAD MARSDEN WEST YORKSHIRE HD7 NQ ENGLAND PHONE 484846062 MR BLUM IS A REPORTER FOR THE NATIONAL LAW JOURNAL IN NEW YORK 9401050068 940105 TUESDAY'S MARKETS BOND PRICES ROAR BACK STOCKS GAIN REPORT ON AUTO SALES SPARKS A REBOUND DOLLAR ENDS MIXED BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES ROARED BACK AFTER STEEP DECLINES MONDAY AND PROPELLED STOCK PRICES SHARPLY HIGHER THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE JUMPED 2730 POINTS TO 378390 STANDARD & POOR'S 500STOCK INDEX ROSE 145 TO 46689 AND THE NASDAQ COMPOSITE INDEX SURGED 352 TO 77428 THE BONDPRICE REBOUND WAS SPURRED BY SOME WEAKERTHANEXPECTED ECONOMIC NEWS US AUTO SALES IN LATE DECEMBER WERE SLIGHTLY LOWER THAN MANY ECONOMISTS HAD FORECAST ALSO THE JOHNSON REDBOOK SERVICE A PRIVATE SURVEY REPORTED RETAIL SALES EDGED DOWN IN DECEMBER FROM NOVEMBER THOSE ECONOMIC REPORTS SUGGESTED TO SOME BOND MARKET INVESTORS THAT FIRSTQUARTER GROWTH MAY SLOW SOMEWHAT AFTER A ROBUST FOURTH QUARTER MANY BOND INVESTORS WERE NERVOUS ABOUT THE STRENGTH OF THE ECONOMY AND THE POSSIBILITY OF HIGHER SHORTTERM INTEREST RATES AND RISING INFLATION YESTERDAY'S SALES REPORTS QUELLED SOME OF THOSE FEARS AT LEAST TEMPORARILY THE BOND MARKET IS STARTING TO HEDGE AGAINST THE POSSIBILITY THAT THE FIRST QUARTER WON'T BE QUITE AS STRONG AS EXPECTED SAID DONALD FINE CHIEF MARKET ANALYST WITH CHASE SECURITIES BUT THE REAL ISSUE IS HOW MUCH WILL THE ECONOMY SLOW DOWN AND HOW WILL THE FEDERAL RESERVE REACT MR FINE EXPECTS GROWTH IN THE GROSS DOMESTIC PRODUCT TO SLOW TO AN ANNUAL RATE OF 25 TO 3 IN THE FIRST QUARTER FROM ABOUT 45 IN THE FOURTH QUARTER WITH THAT KIND OF ECONOMIC SLOWDOWN MR FINE SAID HE CAN'T FORESEE THE FED RAISING SHORTTERM INTEREST RATES DURING THE FIRST QUARTER AFTER STARTING SLOWLY THE STOCK MARKET FOLLOWED THE BOND MARKET'S LEAD THE DOW INDUSTRIALS SLIPPED IN EARLY TRADING BUT FINISHED WITH A FLURRY OF BUYING HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP SAID STOCK INVESTORS PUT A POSITIVE SPIN ON THE WEAKERTHANEXPECTED ECONOMIC NEWS IT'S NOT THAT THE NUMBERS ARE SO WEAK AS TO SUGGEST THE ECONOMY IS COMPLETELY LOSING STEAM HE SAID THE MESSAGE OF THE MARKET IS SIMPLY THAT THE ECONOMY IS SLOWING FROM A FAST PACE TO A MORE MODERATE AND THAT'S GOOD NEWS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 058 TO 11148 IN MAJOR MARKET ACTION STOCK PRICES CLIMBED VOLUME TOTALED 3225 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1204 ISSUES ROSE AND 918 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY ONE POINT OR ALMOST 10 FOR EACH 1000 FACE AMOUNT TO YIELD 634 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17355 MARKS AND 11270 YEN COMPARED WITH 17435 MARKS AND 11261 YEN MONDAY 9401050067 940105 CHAMBERS OF HORRORS SELFSTORAGE LOCKERS OFTEN HARBOR SECRETS BOMBS DRUGS TOXIC WASTE AND EVEN MURDER VICTIMS HAVE BEEN STASHED AWAY BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CHARLES OSTERHOLM AND HIS STEPFATHER BID 8990 FOR THE CONTENTS OF A LOCKER AT A SEATTLEAREA SELFSTORAGE WAREHOUSE THEY HOPED TO STRIKE GOLD THEY KNEW FROM OPERATING A THRIFT SHOP THAT LOCKERS UNDER LEASE FOR A LONG TIME LIKE THIS ONE COULD HARBOR SOMETHING OF REAL VALUE WHAT THEY BOUGHT HOWEVER WERE THE RATHER DRAB BELONGINGS OF A FEDERAL WAY WASH HOUSEHOLD ENOUGH FURNITURE CLOTHING AND OTHER POSSESSIONS TO FILL A SMALL TRUCK TWICE THE MEN WERE PERPLEXED WE DIDN'T UNDERSTAND WHY SOMEONE HAD SPENT THAT MUCH MONEY FOR THAT MANY YEARS STORING THAT MUCH GARBAGE MR OSTERHOLM SAYS THE REASON SOON BECAME CLEAR BURIED UNDER PILES OF CLOTHING THEY FOUND THE WIFE AND TWO SONS OF CAR SALESMAN MARK J BENDER ALL KILLED WITH A HATCHET THE YOUNGEST BOY HAD BEEN WRAPPED IN HIS BEDDING HIS HEAD STILL NESTLED AGAINST HIS SNOOPY PILLOW SUDDENLY MR OSTERHOLM SAYS EVERYTHING MADE SENSE IT WAS THE KIND OF SITUATION THAT LATELY HAS BECOME AN ACUTE EMBARRASSMENT TO THE SELFSTORAGE INDUSTRY CRIMINALS HAVE DISCOVERED THAT SELFSTORAGE UNITS THOSE GARAGELIKE STRUCTURES OUTSIDE NEARLY EVERY CITY IN AMERICA CAN BE TERRIFIC PLACES TO STORE BOMBS DRUGS AND BODIES AND TO DUMP TOXIC CHEMICALS TOO DIFFICULT TO DISPOSE OF LEGALLY THE ANNALS OF STORAGE ABUSE INCLUDE SUCH WELLPUBLICIZED CRIMES AS THE WORLD TRADE CENTER BOMBING INVESTIGATORS FOUND SUSPICIOUS CHEMICALS POSSIBLY BOMB INGREDIENTS IN A LOCKER ALLEGEDLY RENTED BY A SUSPECT AND THE 1992 KIDNAPPING AND MURDER OF EXXON CORP EXECUTIVE SIDNEY RESO WHO DIED IN A STORAGE UNIT WHERE HE HAD BEEN HELD CAPTIVE NO ONE KNOWS WHAT ELSE OR WHO ELSE MAY BE STORED IN AMERICA'S 918 MILLION SQUARE FEET OF SELFSTORAGE SPACE IF YOU WERE SUPERMAN AND YOU TRIED OUT YOUR XRAY VISION ON THESE THINGS YOU'D CERTAINLY BE SHOCKED SAYS JAMES NEILSON A BOMB TECHNICIAN WITH THE AUSTIN TEXAS POLICE HIS SQUAD GETS SUMMONED TO STORAGE UNITS FOUR OR FIVE TIMES A YEAR HE SAYS LAST JULY IT REMOVED SEVEN BOMBS AND INCENDIARY BOOBY TRAPS FROM ONE STORAGE UNIT COMPANIES PROTEST THAT THE VAST MAJORITY OF SELFSTORAGE CUSTOMERS ARE LAWABIDING CITIZENS WE RENT PROBABLY 300000 UNITS A YEAR SAYS MICHAEL ROWE PRESIDENT OF SHURGARD STORAGE CENTERS WHICH OWNS THE COMPLEX WHERE THE BENDER FAMILY WAS FOUND THE PROBLEMS WE'VE HAD YOU COULD PROBABLY DESCRIBE ON ONE HAND OR LESS THAN TWO THE APPEAL OF SELFSTORAGE TO CROOKS HOWEVER SHOULD COME AS NO SURPRISE UNLIKE OPERATORS OF TRADITIONAL WAREHOUSES WHO ACCEPT LEGAL RESPONSIBILITY FOR THE THINGS THEY HOUSE SELFSTORAGE COMPANIES LONG AGO JOINED TOGETHER TO CRAFT MODEL LEGISLATION ADOPTED BY MOST STATES THAT ELIMINATES ANY LEGAL LIABILITY FOR A CUSTOMER'S POSSESSIONS EVEN MEMBERS OF THE INDUSTRY CONCEDE THAT SOME OF ITS COMMON PRACTICES MAY INVITE CRIMINAL MISUSE SELFSTORAGE BECAME A HOT BUSINESS IN THE 1970S AS INVESTORS DISCOVERED THAT THESE VAST COMPLEXES MANY WITH 300 OR MORE STORAGE SPACES COULD BE BUILT ON CHEAP LAND AND RUN AT PRETAX PROFIT MARGINS APPROACHING 70 SECURITY IS MINIMAL ACCORDING TO AN INDUSTRY SURVEY ONLY 22 OF THE NATION'S SELFSTORAGE FACILITIES HAVE ANY KIND OF CAMERA OR VIDEO SURVEILLANCE TO KEEP COSTS DOWN CRITICS SAY COMPANIES PAY THEIR MANAGERS POORLY GIVING THEM LITTLE INCENTIVE TO MONITOR INCOMING MATERIALS SAYS BOB WINET A SANTA MONICA CALIF STORAGEUNIT OPERATOR CRITICAL OF HOW COMPANIES PAY THEIR ONSITE MANAGERS OUR INDUSTRY HAS GOTTEN AWAY WITH MURDER AS THE INDUSTRY GREW SOME MARKETS BECAME SATURATED AS IN THE SOUTH AND WEST INSIDERS FEAR THAT AGGRESSIVE MARKETING TACTICS IN PARTICULAR THE DOLLARAMONTH PROMOTIONS OF PUBLIC STORAGE INC OF GLENDALE CALIF THE LARGEST SELFSTORAGE COMPANY MAKE RENTAL RATES IRRESISTIBLE TO CRIMINALS WHEN YOU CHEAPEN WHAT YOU HAVE TO A POINT WHERE IT BECOMES JUST TOTALLY ACCESSIBLE YOU'RE INVITING PROBLEMS SAYS RONALD BOORSTEIN A PAST PRESIDENT OF THE SELF STORAGE ASSOCIATION HARVEY LENKIN CHAIRMAN OF PUBLIC STORAGE MANAGEMENT INC WHICH MANAGES ALL THE COMPANY'S FACILITIES DISAGREES IF PEOPLE WANT TO DUMP STUFF HE SAYS THEY'RE GOING TO DUMP STUFF WHETHER YOU CHARGE 1 A MONTH OR 50 A MONTH HE SAYS CRIMINAL MISUSE OF PUBLIC STORAGE UNITS IS INFINITESIMAL STILL POLICE HAVE FOUND EXPLOSIVES STOLEN GOODS AND THE BODY OF A MURDER VICTIM IN PUBLIC STORAGE FACILITIES LAST JULY CUSTOMERS OF A PUBLIC STORAGE COMPLEX IN HOLLYWOOD COMPLAINED OF AN UNPLEASANT ODOR SEEPING FROM AN ADJACENT LOCKER INSIDE POLICE FOUND A CEMENTFILLED FREEZER THAT CONTAINED THE BODY OF CHARLES DEDAVIES A 29YEAROLD MAN STRANGLED A WEEK EARLIER IN SCOTTSDALE ARIZ THE KILLERS HAD NEEDED 15 MEN MOST OF THEM DAYLABORERS FROM THE SURROUNDING NEIGHBORHOOD TO MOVE THE HEAVY FREEZER FROM THEIR TRUCK INTO THE LOCKER ACCORDING TO ONE SUSPECT IN SOME CASES SELFSTORAGE UNITS HAVE SERVED FOR YEARS AS THE BASE OF OPERATIONS FOR THRIVING CRIMINAL ENTERPRISES THE FEDERAL BUREAU OF INVESTIGATION IN 1992 EXPOSED AN EXTENSIVE FRAUD RUN LARGELY FROM STORAGE UNITS IN LONG ISLAND NY MEDICAID RECIPIENTS ACQUIRED EXPENSIVE PRESCRIPTION DRUGS AT NO CHARGE THEN RESOLD THEM INTO A BLACKMARKET NETWORK OF BUYERS AND DISTRIBUTORS THESE DISTRIBUTORS IN TURN SOLD THE DRUGS AT DEEP DISCOUNT TO CROOKED PHARMACISTS WHO RESOLD THEM TO CONSUMERS AT FULL PRICE POCKETING THE DIFFERENCE THIS WAS BIG BUSINESS ONE SUSPECT WAS ARRESTED WITH 500000 AND DRUGS VALUED AT 1 MILLION THE NEWEST BRAND OF CRIMINAL MISUSE TOXIC DUMPING MAY AT LAST HAVE BEGUN TO ERODE THE INDUSTRY'S LAISSEZFAIRE ATTITUDE OPERATORS HAVE FOUND THAT EVEN THE INDUSTRY'S OWN LAWS CAN'T DEFLECT LIABILITY FROM SUCH CRIMES UNDER FEDERAL SUPERFUND LEGISLATION THE OWNER OF A PROPERTY ON WHICH POLLUTANTS ARE DUMPED IS JUST AS LIABLE FOR THE COSTS OF ANY CLEANUP AS THE DUMPER HIMSELF SUCH COSTS CAN BE HIGH IN ONE RECENT CASE A SHURGARD COMPLEX OUTSIDE SAN FRANCISCO PAID 200000 THE EQUIVALENT OF MORE THAN 5000 MONTHS OF RENT ON A STANDARD 5BY10 CHAMBER TO CLEAN UP A CACHE OF 1000 CHEMICALS LEFT BY A TENANT THE FEAR OF SUCH OUTLAYS HAS DRIVEN COMPANIES TO STEP UP SECURITY MANAGEMENT CO OF LITTLE FERRY NJ HAD TO PAY 39000 TO CLEAN UP CHEMICALS LEFT BY TWO DIFFERENT TENANTS SAYS KENNETH COOLEY PRESIDENT NOW IN A DEPARTURE FROM INDUSTRY PRACTICE ACCESS RESERVES THE RIGHT TO INSPECT UNITS AND INSISTS RENTERS PROVIDE A COPY OF THE KEYS TO THEIR PADLOCKS SELFSTORAGE RENTERS TYPICALLY SUPPLY THEIR OWN LOCKS THE COMPANY ALSO INSTALLED DUALEXPOSURE CAMERAS THAT SIMULTANEOUSLY PHOTOGRAPH THE RENTER AND A PORTION OF THE LEASE OFTEN HOWEVER THERE IS LITTLE A COMPANY CAN DO TO KEEP CRIMINALS FROM MISUSING ITS STORAGE CHAMBERS SHURGARD FOR EXAMPLE INHERITED THE BENDER LOCKER WHEN IT ACQUIRED ANOTHER COMPANY'S COMPLEX THE BODIES CAME TO LIGHT IN 1992 WHEN MR BENDER'S SECOND WIFE ANGRY AT WRITING A MONTHLY CHECK TO STORE WHAT SHE BELIEVED WERE HIS EXWIFE'S BELONGINGS STOPPED PAYMENT WITHOUT TELLING HIM WHEN SEATTLE DETECTIVES CAUGHT UP WITH HIM MR BENDER BY THEN A USEDCAR SALESMAN AT HAPPY DAYS FORD IN NAMPA IDAHO WAS STUNNED AND SOON CONFESSED TO THE MURDERS I THOUGHT THE STORAGE UNIT WAS PAID FOR HE SAID THE FAMILY HAD BEEN THERE FOR 12 YEARS 9401050065 940105 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN SUPPORT GROWS FOR SOME TAXLAW TINKERING IN CONGRESS THIS YEAR LAWMAKERS FACE PRESSURE TO PASS SEVERAL TAX BILLS THIS YEAR INCLUDING ONE THAT WOULD CORRECT TECHNICAL ERRORS IN PAST TAX LAWS CONGRESS PROBABLY WILL ENACT THIS AND A SEPARATE BILL THAT WOULD OVERHAUL THE HEAVILY CRITICIZED RULES FOR HOUSEHOLD EMPLOYEES SUCH AS BABY SITTERS AND HOUSEKEEPERS PREDICTS PAMELA PECARICH OF COOPERS & LYBRAND UNDER CURRENT LAW EMPLOYERS WHO PAY MORE THAN 50 A QUARTER MUST PAY SOCIAL SECURITY TAXES AND FILE RETURNS QUARTERLY TREASURY OFFICIALS SENATE FINANCE CHAIRMAN MOYNIHAN D NY AND MANY OTHER LAWMAKERS FAVOR RAISING THE NANNYTAX THRESHOLD AND REQUIRING RETURNS TO BE FILED JUST ONCE A YEAR BUT IT IS AN ELECTION YEAR WHICH MUDDIES THE OUTLOOK FOR ANY TAX BILLS EVEN MINOR ONES THE FIGHT OVER CLINTON'S HEALTHCARE PLAN FURTHER CLOUDS THE PICTURE EVEN SO THERE IS A REASONABLE CHANCE CONGRESS WILL PASS NANNYTAX CHANGES TECHNICAL CORRECTIONS AND A SIMPLIFICATION ACT SAYS CLINT STRETCH OF DELOITTE & TOUCHE PHONING THE IRS FOR HELP CAN BE AS FRUSTRATING AS FILLING OUT TAX FORMS DON'T WAIT UNTIL MARCH OR APRIL TO CALL THE IRS TAX ADVISERS AND IRS OFFICIALS WARN DO IT NOW OTHERWISE BE PREPARED TO GET A BUSY SIGNAL ONE TIP AVOID CALLING AT LUNCHTIME OR ON MONDAYS THOSE ARE ESPECIALLY BUSY PERIODS AN IRS SPOKESMAN SAYS A GENERAL ACCOUNTING OFFICE REPORT SAYS ABOUT 74 OF CALLERS GOT BUSY SIGNALS IN THE 1993 TAXFILING SEASON UP FROM 65 IN 1992 AND THE IRS REPORTS A LARGE DROP IN THE PERCENTAGE OF CALLERS ABLE TO GET THROUGH IN 1993 COMPARED WITH 1992 OFFICIALS SAY IT IS TOUGH TO IMPROVE DUE TO A SURGE IN TAXPAYER CALLS REACHING THE IRS MAY BE ESPECIALLY HARD THIS YEAR BECAUSE THE COMPLEX NEW LAW PASSED LAST AUGUST IS LIKELY TO GENERATE EVEN MORE QUESTIONS AND CONFUSION TRADE AID A USMEXICO TAX TREATY DRAWS WARM REVIEWS TAX EXPERTS PREDICT THE TREATY WHICH TOOK EFFECT JAN 1 WILL PROVIDE A POWERFUL LIFT TO USMEXICO TRADE IN COMING YEARS THE PACT APPROVED BY THE US SENATE IN NOVEMBER IS SEPARATE FROM NAFTA BUT MESHES CLOSELY WITH IT FOR EXAMPLE THE TREASURY SAYS SOME JOINT VENTURES INVOLVING US CANADIAN AND MEXICAN INVESTORS WILL BE ABLE TO TAKE ADVANTAGE OF KEY TAXTREATY BENEFITS SUCH AS LOWER WITHHOLDING RATES ON INTEREST DIVIDENDS AND ROYALTIES THE PACT THE FIRST COMPREHENSIVE US TAX TREATY WITH MEXICO ALSO WILL HELP COMPLEMENT AN EXISTING AGREEMENT ON EXCHANGE OF TAX INFORMATION SAYS ALAN GRANWELL A PARTNER AT THE LAW FIRM OF KAYE SCHOLER IN WASHINGTON AND A FORMER TREASURY INTERNATIONALTAX COUNSEL ELI FINK OF DELOITTE & TOUCHE SAYS THE ACCORD PAVES THE WAY FOR INCREASED US INVESTMENT IN MEXICO AND VICE VERSA BUT THE FULL IMPACT WON'T BE FELT IMMEDIATELY SINCE CERTAIN ADDITIONAL WITHHOLDING CUTS WON'T OCCUR FOR FIVE YEARS SAYS JAMES CIGLER OF PRICE WATERHOUSE THE JUSTICE DEPARTMENT WILL FILE A FRIENDOFTHECOURT BRIEF IN A SUPREME COURT CASE INVOLVING A CONTROVERSIAL METHOD OF TAXING MULTINATIONAL COMPANIES JUSTICE WHICH ONCE URGED THE COURT NOT TO HEAR THE CASE WILL EITHER BACK CALIFORNIA OR OFFER A COMPROMISE CALIFORNIA HAS CHANGED THE LAW UNDER ATTACK BUT AN UNFAVORABLE RULING COULD COST IT MORE THAN 4 BILLION A HEAVY WORKLOAD THE IRS FACED 566 REGULATIONWRITING PROJECTS AS OF OCT 31 LITTLE CHANGED FROM 570 AT THE END OF 1992 MEANWHILE THE CLINTON ADMINISTRATION STILL HASN'T NAMED A NEW IRS CHIEF COUNSEL AFTER NEARLY A YEAR OF SEARCHING DAVID JORDAN IS ACTING CHIEF COUNSEL INSIDE THE BELTWAY HUMOR IN THE WAKE OF REPORTS OF CLINTON DEDUCTIONS FOR DONATING OLD CLOTHES IRS COMMISSIONER RICHARDSON TELLS REPORTERS SHE WILL BE DELIGHTED TO ANSWER ANY QUESTIONS EXCEPT THOSE THAT RELATE TO THE FAIR MARKET VALUE OF LONG UNDERWEAR TAXCUT FEVER MOUNTS AT LEAST IN A FEW BIG STATES TODAY NEW YORK GOV CUOMO IS EXPECTED TO PROPOSE CUTS IN CORPORATE TAXES AND A FEW OTHER LEVIES NEW JERSEY GOV WHITMAN HAS PLEDGED TO CUT INDIVIDUAL INCOME TAXES BY 30 OVER THREE YEARS SEVERAL OTHER STATES SUCH AS MASSACHUSETTS GEORGIA AND SOUTH CAROLINA ALSO MAY CUT SOME TAXES SAYS STEVEN D GOLD AT THE CENTER FOR THE STUDY OF THE STATES IN ALBANY NY ASIDE FROM NEW JERSEY THOUGH MOST OF THE PROPOSED CUTS ARE RELATIVELY SMALL SAYS GOLD EVEN THOUGH STATE TAX REVENUES ARE EXPANDING BECAUSE OF THE ECONOMIC UPSWING STATES CAN'T AFFORD TO LOWER THEIR TAXES MUCH BECAUSE THERE IS SO MUCH PRESSURE ON SPENDING FOR HEALTH AND PRISONS HE SAYS LAST YEAR NINE STATES APPROVED TAX CUTS WHILE 30 RAISED TAXES GOLD SAYS BRIEFS THANKS BUT IS IT TAXABLE MORE THAN 500 HUNGRY TAXPAYERS HAVE RESPONDED TO AN OFFER BY EMPIRE KOSHER POULTRY OF MIFFLINTOWN PA TO SEND A FREE CHICKEN TO ANYONE AUDITED BY THE IRS IN 1993 RETROACTIVE IGNORANCE IS BLISS THINK BACK TO THE GOOD OLD DAYS ONE YEAR AGO SAYS COMEDIAN MARK RUSSELL MANY OF US WERE ALREADY PAYING HIGHER TAXES BUT AT LEAST WE DIDN'T KNOW IT TAX HUMOR CONRAD TEITELL A TAX LAWYER SENDS FRIENDS HIS BEST WISHES FOR A HAPPY NEW YEAR INCLUDING BUT NOT LIMITED TO ALL CALENDAR FISCAL AND TAXABLE YEARS 9401050064 940105 BORDEN TO SELL SNACK FOOD LINE IN RESTRUCTURING PLAN TO BE UNVEILED TODAY WILL RESULT IN CHARGE TOTALING 650 MILLION BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BORDEN INC'S BOARD APPROVED A RESTRUCTURING PLAN THAT INVOLVES SELLING THE COMPANY'S SNACKFOOD BUSINESS AND WILL RESULT IN A 650 MILLION CHARGE TO FOURTHQUARTER EARNINGS PEOPLE CLOSE TO THE SITUATION SAID THE LONGAWAITED PLAN WHICH IS EXPECTED TO BE ANNOUNCED TODAY WAS APPROVED AT A SPECIAL MEETING OF BORDEN'S BOARD YESTERDAY AFTERNOON COMPANY OFFICIALS DECLINED TO COMMENT BUT INDUSTRY EXECUTIVES AND THOSE CLOSE TO THE SITUATION SAID MUCH OF THE CHARGE IS RELATED TO THE PLAN'S PROPOSALS TO SELL AMONG OTHER THINGS BORDEN'S LAGGING SNACKFOOD BUSINESS AS WELL AS SOME BRANDS IN ITS NICHE GROCERY UNIT THE SNACKFOOD BUSINESS GENERATED 1992 SALES OF ABOUT 125 BILLION THE ANNOUNCEMENT OF BORDEN'S RESTRUCTURING PLAN WILL CAP A TUMULTUOUS YEAR AT THE FOOD AND CHEMICAL CONGLOMERATE WHICH HAD QUARTER AFTER QUARTER OF POOR EARNINGS PERFORMANCES BORDEN'S CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO RESIGNED UNDER PRESSURE IN DECEMBER AND THE COMPANY'S BOARD CONSIDERED PUTTING THE ENTIRE COMPANY ON THE BLOCK HANSON PLC WAS THE MOST RECENT SUITOR TO CONSIDER PURCHASING BORDEN UNTIL TALKS BROKE DOWN A FEW WEEKS AGO WHILE WALL STREET HAS GENERALLY CAST A KIND EYE ON MAJOR RESTRUCTURING EFFORTS MANY INVESTORS HAVE LOST PATIENCE WITH BORDEN WHICH HAS UNDERGONE TWO RESTRUCTURING EFFORTS SINCE 1989 LAST YEAR UNDER MR D'AMATO BORDEN TOOK A 450 MILLION RESTRUCTURING CHARGE TO STREAMLINE ITS OPERATIONS AND PURSUE A ONECOMPANY MARKETING APPROACH THAT HAS SINCE BEEN ABANDONED INDEED BORDEN'S BUSINESSES HAVE SUFFERED SO MUCH THIS YEAR THAT FEW BELIEVE THAT THE COMPANY COULD SELL ANY OF ITS MAJOR FOOD UNITS WITHOUT TAKING SOME SORT OF A CHARGE THIS MAY SHOW PEOPLE THAT BORDEN'S ASSETS AREN'T WORTH AS MUCH AS SOME THINK SAYS JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INC PEOPLE FAMILIAR WITH THE COMPANY'S PLANS SAY BORDEN IS PUTTING THE SNACKFOOD BUSINESS AND NICHE GROCERY BRANDS ON THE AUCTION BLOCK SOME BIG FOOD MARKETERS SUCH AS RJR NABISCO HOLDINGS CORP AND UNILEVER GROUP ARE SAID TO HAVE SHOWN INTEREST IN SNAGGING SOME OF BORDEN'S BRANDS RESTRUCTURING BORDEN'S FARFLUNG OPERATIONS WILL BE A DIFFICULT TASK THE COMPANY'S 1992 SALES OF 71 BILLION CAME FROM A DIVERSE COLLECTION OF BUSINESSES INCLUDING EVERYTHING FROM HOUSEHOLD GLUES TO CHEESE TO CRACKER JACK BORDEN'S FOOD PORTFOLIO IS CRAMMED WITH REGIONAL AND NICHE PRODUCTS WHILE PROFITS AT ITS LARGER DAIRY AND PASTA BUSINESSES HAVE BEEN DECLINING IN THE THIRD QUARTER BORDEN REPORTED A MEAGER 200000 IN NET INCOME THAT REFLECTED SIGNIFICANT PROFIT DECLINES IN NEARLY ALL OF ITS BUSINESS UNITS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BORDEN CLOSED AT 1825 UP 50 CENTS 9401050063 940105 ALASKA AIR UNITS CUT FARES SEATTLE ALASKA AIR GROUP INC SAID ITS ALASKA AIRLINES AND HORIZON AIR UNITS HAVE SLASHED ROUNDTRIP FARES BETWEEN THE PACIFIC NORTHWEST AND SEVERAL WEST COAST CITIES AS OF YESTERDAY THE LOWEST ROUNDTRIP FARES FROM SEATTLE AND PORTLAND ORE TO SOUTHERN CALIFORNIA CITIES ARE 159 TO 179 DOWN FROM 208 TO 248 9401050062 940105 POLITICS & POLICY BROWN BOOSTS BUDGET FOR COMMERCE DEPARTMENT BY APPEALING TO CLINTON'S INVESTMENT AGENDA BY MICHAEL K FRISBY AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WHEN COMMERCE SECRETARY RON BROWN ASKED PRESIDENT CLINTON TO PROPOSE GIVING HIS DEPARTMENT SIGNIFICANTLY MORE IN NEXT YEAR'S BUDGET THAN THE WHITE HOUSE BUDGET OFFICE HAD RECOMMENDED SOME ADMINISTRATION OFFICIALS CHUCKLED AT MR BROWN'S NERVE MR BROWN HAD THE LAST LAUGH ADMINISTRATION OFFICIALS SAY THE PRESIDENT PLANS TO PROPOSE A 12 INCREASE IN THE DEPARTMENT'S BUDGET WITH MOST OF THE EXTRA MONEY GOING TO MR CLINTON'S PET INVESTMENT PROGRAMS PARTICULARLY PROGRAMS AIMED AT HELPING MANUFACTURERS MODERNIZE AND SPEEDING THE DEVELOPMENT OF NEW TECHNOLOGIES BY FORCING MR CLINTON TO LIVE WITH TIGHT CAPS ON SPENDING CONGRESS FORCED HIM TO SCALE BACK HIS INVESTMENT AGENDA BUT AS DETAILS OF HIS NEW BUDGET BEGIN TO SEEP OUT IT'S CLEAR THE PRESIDENT FIGURES THAT LAST YEAR WAS THE YEAR OF DEFICITREDUCTION AND THAT THIS YEAR HE IS FREER TO FOCUS ON THE INVESTMENT AGENDA HE TALKED ABOUT DURING HIS CAMPAIGN MR CLINTON WILL SUCCEED IN GETTING MORE MONEY FOR HIS TOPPRIORITY INVESTMENT PROGRAMS ONLY IF HE CAN PERSUADE CONGRESS TO SQUEEZE MONEY OUT OF LESSFAVORED PROGRAMS AND IT WILL BE FAR EASIER FOR THE PRESIDENT TO DRAW UP A LIST OF PROGRAMS TO SQUEEZE THAN TO PERSUADE CONGRESSIONAL APPROPRIATIONS COMMITTEES TO ACTUALLY SQUEEZE THEM THE PRESIDENT FOR INSTANCE IS PLANNING TO ASK CONGRESS TO SAVE ABOUT 12 MILLION BY PHASING OUT THE STATE JUSTICE INSTITUTE WHICH MAKES GRANTS TO IMPROVE THE OPERATION OF STATE COURTS BUT MR CLINTON SUGGESTED THAT LAST YEAR AND CONGRESS IGNORED HIM ACCORDING TO ADMINISTRATION OFFICIALS THE WHITE HOUSE BUDGET OFFICE INITIALLY RECOMMENDED THAT THE COMMERCE DEPARTMENT GET 36 BILLION IN DISCRETIONARY SPENDING FOR FISCAL 1995 SLIGHTLY LESS THAN CONGRESS APPROPRIATED FOR THE CURRENT FISCAL YEAR LIKE ALL CABINET SECRETARIES MR BROWN WAS GIVEN ONE CHANCE TO MAKE A PITCH TO THE PRESIDENT ON WHY THE BUDGET OFFICE WAS BEING TOO STINGY BUDGET DIRECTOR LEON PANETTA MADE HIS CASE FIRST BACKED UP BY ONE OF HIS DEPUTIES CHRISTOPHER EDLEY MR BROWN OFFICIALS SAY TOLD MR CLINTON THAT WITH MORE MONEY HIS AGENCY COULD DELIVER ON ONE OF THE PRESIDENT'S MAJOR GOALS A STRONGER PARTNERSHIP BETWEEN GOVERNMENT AND BUSINESS IN BUILDING NEW TECHNOLOGIES AND FINDING NEW MARKETS HE IS SAID TO HAVE TOLD THE PRESIDENT THAT UNDER REPUBLICAN ADMINISTRATIONS COMMERCE DEPARTMENT BUDGETS WERE SLASHED BECAUSE REPUBLICANS DIDN'T BELIEVE IN THE PROGRAMS THAT MR CLINTON WANTS TO EXPAND AT THE CONCLUSION OF THE PRESENTATION MR CLINTON TURNED TO BUDGET DIRECTOR LEON PANETTA AND QUIPPED WOULDN'T YOU LIKE TO HAVE RON AS YOUR LAWYER IN THE END THE PRESIDENT DECIDED TO ASK CONGRESS FOR 408 BILLION FOR THE DEPARTMENT A DECISION THAT WILL FORCE SOME OTHER AGENCY TO GET BY WITH NEARLY 500 MILLION LESS AMONG THE BIGGEST WINNERS IN THE COMMERCE DEPARTMENT'S BUDGET IS THE ADVANCED TECHNOLOGY PROGRAM WHICH MAKES RESEARCH GRANTS TO COMPANIES DEVELOPING NEW TECHNOLOGIES MR CLINTON PLANS TO ASK CONGRESS TO APPROPRIATE 451 MILLION FOR THIS UP FROM 190 MILLION IN THE CURRENT YEAR LONG A FAVORITE OF VICE PRESIDENT AL GORE THE PROGRAM IS THE CIVILIAN EQUIVALENT OF THE PENTAGON'S HIGHLY LAUDED EFFORT TO FOSTER ADVANCES IN COMPUTING ELECTRONICS AND MILITARY TECHNOLOGY THE PRESIDENT ALSO PLANS TO PROPOSE MORE THAN DOUBLING THE BUDGET FOR MANUFACTURING EXTENSION CENTERS WHICH ARE DESIGNED TO GIVE SMALL AND MEDIUMSIZED MANUFACTURERS ACCESS TO ADVANCED TECHNOLOGY THAT MAKES THEM MORE PRODUCTIVE TO PROVIDE FOR MORE CENTERS MR CLINTON IS EXPECTED TO ASK FOR 68 MILLION UP FROM 33 MILLION THIS YEAR IN A DECISION AIMED PARTLY AT DEMONSTRATING CONCERN FOR THE AILING CALIFORNIA ECONOMY THE COMMERCE DEPARTMENT'S DEFENSE CONVERSION PROGRAM WHICH WAS FUNDED AT 80 MILLION THIS YEAR IS TO GET 140 MILLION IN NEXT YEAR'S BUDGET THE MONEY IS SUPPOSED TO CUSHION THE PAIN IN COMMUNITIES WHERE BASES ARE CLOSING OR DEFENSE CONTRACTORS ARE CUTTING BACK A SUBSTANTIAL SHARE IS TO GO TO CALIFORNIA ELSEWHERE IN THE BUDGET WHICH IS TO BE UNVEILED ON FEB 7 MR CLINTON IS EXPECTED TO PROPOSE SPENDING 100 MILLION ANNUALLY OVER THE NEXT FOUR YEARS TO HELP OTHER NATIONS FULFILL COMMITMENTS THEY MADE AT THE 1992 EARTH SUMMIT IN RIO DE JANEIRO LIKE THE ADVANCED TECHNOLOGY PROGRAM THIS IS ANOTHER OF VICE PRESIDENT GORE'S PRIORITIES CONGRESS PREVIOUSLY BUDGETED 30 MILLION FOR THIS BUT THE MONEY HASN'T BEEN SPENT SEPARATELY ADMINISTRATION OFFICIALS SAID THAT FOR THE FIRST TIME THE DEFENSE BUDGET WILL INCLUDE 300 MILLION TO SUPPORT UNITED NATIONS PEACEKEEPING AND PEACEMAKING OPERATIONS IN THE PAST THAT MONEY HAS BEEN FUNDED ENTIRELY FROM THE STATE DEPARTMENT WHICH WILL CONTINUE TO PAY A PORTION OF THE COSTS THE PENTAGON HAD FEARED THAT IT MIGHT BE FORCED TO ABSORB THE COST OF OTHER PROGRAMS TRADITIONALLY FUNDED BY THE STATE DEPARTMENT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND OTHER AGENCIES BUT IT HAS LARGELY AVOIDED THAT JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9401050061 940105 BUSINESS BRIEF ECKERD CORP VISION GROUP IS TO BE SOLD TO GROUP LED BY EXECUTIVE ECKERD CORP CLEARWATER FLA SAID IT IS SELLING ITS VISION GROUP DIVISION TO AN INVESTMENT GROUP HEADED BY AN ECKERD SENIOR VICE PRESIDENT RICHARD ROBERSON WHO HAS RUN THE DIVISION SINCE 1988 SUBMITTED A BID TO PURCHASE ECKERD'S 47 VISIONWORKS OPTICAL SUPERSTORES AND 29 ECKERD OPTICAL CENTERS DETAILS OF THE TRANSACTION WEREN'T DISCLOSED BUT THE DEAL IS EXPECTED TO CLOSE IN THE NEXT 60 DAYS THE COMPANY SAID ECKERD A DRUGSTORE CHAIN DOESN'T EXPECT ANY SIGNIFICANT GAIN OR LOSS ON THE SALE OF THE ASSETS BUT WITH THE SALE OF THE OPTICAL OUTLETS ECKERD WILL BE ABLE TO FOCUS ON ITS CORE PHARMACEUTICAL RETAIL BUSINESS A COMPANY SPOKESMAN SAID IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ECKERD SHARES CLOSED 18625 UP 625 CENTS 9401050060 940105 FOREIGN EXCHANGE DOLLAR TAKES BREATHER AFTER WEEK'S RISE AGAINST MOST CURRENCIES STERLING SURGES BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR PAUSED FOR BREATH TUESDAY AFTER A WEEKLONG CLIMB AGAINST MOST MAJOR CURRENCIES GIVING BACK SOME OF ITS RECENT GAINS AGAINST THE MARK BUT HOLDING STEADY AGAINST THE YEN STERLING ROARED AHEAD MEANWHILE AFTER A SURPRISINGLY STRONG RISE IN THE UK MONEY SUPPLY SUGGESTED THAT FURTHER BRITISH BASERATE CUTS MAY BE SLOW IN COMING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 17355 MARKS DOWN FROM 17435 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11270 YEN UP A BIT FROM 11261 STERLING WAS TRADING AT 14865 UP FROM 14750 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11333 YEN AND AT 17356 MARKS AFTER RISING ALMOST FIVE PFENNIGS DURING THE YEAREND HOLIDAY PERIOD ON OPTIMISM OVER THE US ECONOMY AND EXPECTATIONS OF LOWER INTEREST RATES IN EUROPE TRADERS SAID THE DOLLAR SLIPPED BACK AGAINST THE MARK TUESDAY AS INVESTORS CASHED IN SOME OF THEIR GAINS BUT ALONG WITH NORMAL AMOUNTS OF PROFITTAKING TRADERS NOTED THE MARKET ALSO APPEARED TO BE STEPPING BACK TO CONSIDER THE DOLLAR'S SURGE WHICH ARRIVED SOMEWHAT UNEXPECTEDLY WHILE MANY TRADERS WERE TAKING THEIR YEAREND HOLIDAYS THE MARKET IS A LITTLE APPREHENSIVE ABOUT WHETHER THE DOLLAR'S RISE HAS GONE TOO FAR SAID BENOIT JADOUL A VICE PRESIDENT AT CHASE MANHATTAN BANK IN NEW YORK TRADERS GENERALLY BELIEVE THAT A HOST OF FACTORS SUCH AS IMPRESSIVE US ECONOMIC GROWTH AND EXPECTATIONS THAT GERMAN INTEREST RATES WILL FALL WHILE THOSE IN THE US COULD RISE ALL POINT TO A HIGHER DOLLAR THIS YEAR BUT AT THE SAME TIME THEY CAUTION THAT THE MARKET HAD SIMILAR HOPES FOR 1993 ONLY TO BE FRUSTRATED BY A SPUTTERING US ECONOMIC RECOVERY AND STUBBORNLY HIGH GERMAN INTEREST RATES THE NEW ERA OF THE DOLLAR HAS BEEN SO WELL ANTICIPATED THAT A LOT OF PEOPLE ARE A BIT FEARFUL ABOUT EMBRACING IT SAID MARC COHEN MANAGING DIRECTOR AT CWAVE CAPITAL MANAGEMENT CORP FORT LEE NJ PEOPLE ARE AFRAID TO BRING THE DOLLAR INTO NEW GROUND HE ADDED THE PROFITTAKING BEGAN DURING EUROPEAN TRADING AND PICKED UP AS NORTH AMERICAN TRADERS FOLLOWED THE LEAD IT THEN SPREAD TO TRADING IN THE DOLLAR AGAINST THE YEN DEALERS NOTED AS PLAYERS DECIDED THAT THE US CURRENCY HAD RISEN A BIT TOO FAR TO JUSTIFY AMID LINGERING UNCERTAINTY OVER THE CONTINUING USJAPAN TRADE TALKS WE SAW A LOT OF GOOD DOLLAR SELLING COMING FROM THE FUND MANAGERS SAID MARK SCHWARTZ A VICE PRESIDENT AT LEHMAN BROTHERS INC IN NEW YORK DOLLARYEN IS GOING TO HAVE TO TAKE A LITTLE REST HE ADDED MARKETS CAN'T JUST GO ONE WAY FOREVER TRADERS NOTED THAT THOSE SALES OF DOLLARS FOR YEN KNOCKED DOWN THE DOLLAR FROM AN EIGHTMONTH HIGH OF 11348 YEN AND AFTER THE DOLLAR HAD BEEN BID HIGHER DURING TOKYO TRADING THEY SAID JAPANESE TRADERS WHO HAD MISSED THE DOLLAR'S RALLY BECAUSE OF RECENT HOLIDAYS IN TOKYO SCRAMBLED TO BUY SOME MEANWHILE THE POUND ROSE AS INVESTORS DECIDED THAT SURPRISINGLY STRONG GROWTH IN THE MONEY SUPPLY DURING DECEMBER COULD DELAY A LONGEXPECTED CUT IN BRITAIN'S 55 BASE LENDING RATES THE BANK OF ENGLAND SAID ITS NARROW M0 MONEYSUPPLY GAUGE OF CASH IN CIRCULATION PLUS BANKS' OPERATIONAL BALANCES WITH THE CENTRAL BANK GREW 1 IN DECEMBER FROM NOVEMBER MORE THAN DOUBLE THE 04 INCREASE RECORDED IN NOVEMBER 9401050059 940105 BUSINESS BRIEF CHEMED CORP COMPANY BUYS PATIENT CARE IN 214 MILLION TRANSACTION CHEMED CORP SAID IT COMPLETED THE ACQUISITION OF PRIVATELY HELD PATIENT CARE INC A WEST ORANGE NJ HOME HEALTHCARE CONCERN CHEMED BASED IN CINCINNATI SAID IT PAID AN AGGREGATE OF 214 MILLION FOR PATIENT CARE INCLUDING DEFERRED PAYMENTS OF ABOUT 6 MILLION ADDITIONAL CASH PAYMENTS OF UP TO 104 MILLION MAY BE MADE CONTINGENT ON EARNINGS DURING THE THREEYEAR PERIOD ENDING DEC 31 1995 PATIENT CARE HAD 1993 REVENUE OF ABOUT 53 MILLION ACCORDING TO CHEMED CHEMED HAS BUSINESSES IN THE MANUFACTURE AND DISTRIBUTION OF MEDICAL AND DENTAL SUPPLIES FOR PRIVATE PRACTICES HOME HEALTHCARE SERVICES HOSPICE CARE AND PHARMACY MANAGEMENT FOR THE LONGTERM CARE MARKET PLUMBING DRAIN CLEANING AND REPAIR AND MAINTENANCE OF APPLIANCES AND AIR CONDITIONERS AND SANITARY MAINTENANCE PRODUCTS AND SERVICES 9401050058 940105 THINKING SMALL SPECIALTY BEERS' SUCCESS PROMPTS BIG BREWERS TO TRY OUT THE NICHE COORS SCORES WITH KILLIAN'S BY FORGOING TV ADS USING A MORELOCAL PUSH ANHEUSER STICKS WITH BUD BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN COLO ADOLPH COORS CO SOLD ONLY 300000 BARRELS OF KILLIAN'S IRISH RED IN 1992 A DROP IN THE MUG COMPARED WITH COORS LIGHT WITH ALMOST 13 MILLION BARRELS SHIPPED YET IT IS KILLIAN'S A BREW MUCH OF THE BEERDRINKING PUBLIC DOESN'T EVEN ASSOCIATE WITH COORS THAT IS EXCITING COMPANY EXECUTIVES BESIDES BEING THEIR FASTESTGROWING BEER WITH SALES RISING 60 LAST YEAR KILLIAN'S REPRESENTS AN AGGRESSIVE EFFORT TO REVERSE THE THINKBIG MARKETING STRATEGY THAT HAS DOMINATED THE BEER INDUSTRY FOR DECADES THAT CONVENTIONAL WISDOM FORCED THE ONCEREGIONAL BREWER TO EXPAND NATIONWIDE AND GO TOE TO TOE WITH GIANTS LIKE ANHEUSERBUSCH COS THESE DAYS SOCALLED SPECIALTY BEERS SUCH AS SIERRA NEVADA RED HOOK SAMUEL ADAMS BREWSKI AND RED TAIL ALE ARE GRABBING MEDIA ATTENTION VOLUME GAINS AND HIGH PRICES THAT BIG BREWERS ENVY THOUGH SPECIALTY BEERS REGIONAL LABELS AND OTHER SMALL BEERS ACCOUNT FOR JUST 1 OF THE NATION'S 6 BILLION BEER MARKET THEIR GAINS HAVE COME AT THE EXPENSE OF SUCH BRANDS AS ANHEUSER'S MICHELOB AND MILLER BREWING CO'S LOWENBRAU SAYS ROBERT WEINBERG A BREWERY CONSULTANT AND FORMER ANHEUSER MARKETING CHIEF SO WITH SALES STAGNATING BRUTAL PRICE WARS SPREADING AND CONSUMERS REJECTING MANY NEW MASSAUDIENCE CONCOCTIONS ICE BEER CLEAR BEER DRY BEER SOME OF THE BIG BOYS HAVE DECIDED TO GO WHERE THE GROWTH IS BY DEVELOPING THEIR OWN MICROBREWS SMALLVOLUME BEERS TARGETED TO SMALL AUDIENCES AND AMONG THOSE THINKING SMALL COORS HAS DONE IT IN THE BIGGEST WAY WITH A HOST OF NEW PRODUCTS INTRODUCED BY A NEW MARKETING UNIT UNIBEV LTD THAT IS DEDICATED TO DEVELOPING BOUTIQUE BEERS THIS FALL THE COMPANY SAID IT WOULD CREATE A LINE OF SEASONAL BEERS STARTING WITH ITS SEVENYEAROLD WINTERFEST CHRISTMAS BREW WHICH IS REFORMULATED EACH YEAR IN A TINY SHOP DEEP WITHIN THE HUGE COORS BREWERY HERE COORS WILL ADD A SPRINGTIME BOCK A SUMMERTIME WHEAT BEER AND A FALL OCTOBERFEST BEER WE MAY HAVE THE BIGGEST BREWERY IN THE WORLD BUT WE ALSO HAVE THE BEST MICROBREWERY BOASTS BOB JONAS NEWPRODUCTS DIRECTOR SEVERAL ARE TRYING BESIDES COORS STROH BREWERY CO OF DETROIT IS PROMOTING THE AUGSBERGER BRANDS IT BOUGHT A FEW YEARS AGO FROM REGIONAL HUBER BREWING CO IN MONROE WIS ITS AUGSBERGER DARK LAGER AND OKTOBERFEST BEERS HAVE BEEN JOINED THIS CHRISTMAS BY A DOPPLEBOCK AND SALES ARE UP ABOUT 60 IT SAYS MILLER A UNIT OF PHILIP MORRIS COS BOUGHT LEINENKUGEL BREWING CO OF CHIPPEWA FALLS WIS IN 1987 AND HAS TURNED IT INTO A KIND OF MICROBREWERY WITHIN A BREWERY IT ALSO CREATED MILLER RESERVE BRANDS INCLUDING MILLER RESERVE AMBER ALE A KILLIAN'S LOOKALIKE CANADA'S BIG BREWER JOHN LABATT LTD BOUGHT LATROBE BREWING CO OF PENNSYLVANIA WHICH RECENTLY INTRODUCED AN AMBERCOLORED ROLLING ROCK BOCK AND IN DISCUSSING THE RECENTLY ANNOUNCED BUYOUT OF G HEILEMAN BREWING CO BY HICKS MUSE & CO OF DALLAS CHAIRMAN THOMAS HICKS SAID SPECIALTY BEERS WILL BE PART OF THAT COMPANY'S STRATEGY FOR GROWTH CONSPICUOUSLY ABSENT FROM THIS TREND IS THE NATION'S LARGEST BREWER ANHEUSERBUSCH IT HAS EXPERIMENTED WITH SPECIALTY BRANDS AND ALTHOUGH DISTRIBUTORS AROUND THE COUNTRY REPORT THEY WERE WELL ACCEPTED THE COMPANY DISCONTINUED THEM ANHEUSER SEEMS TO BE MORE INTERESTED IN SPENDING ITS MONEY IN EXPANDING OVERSEAS WHERE GROWTH POTENTIAL FOR BUDWEISER IS STILL BIG RATHER THAN TRYING TO NIBBLE AWAY AT THE MUCH SMALLER SPECIALTY MARKET IN THE US SAYS EMANUEL GOLDMAN BREWERY ANALYST AT PAINEWEBBER INC ANHEUSERBUSCH OFFICIALS DECLINE TO BE INTERVIEWED OTHERS THINK THE MARKET WON'T ALWAYS BE TINY IT'S GROWING BY LEAPS AND BOUNDS SAYS JERRY SCHMUTTE CATEGORY DIRECTOR FOR MILLER'S SPECIALTY BRANDS MICHAEL PORTER STROH'S MARKETING VICE PRESIDENT THINKS SPECIALTY BEERS COULD ACCOUNT FOR 10 MILLION BARRELS OR 5 OF THE US BEER MARKET BY THE DECADE'S END WHAT IS DANDY ABOUT THESE BREWS FOR THE BIG BREWERS IS THEY ARE FAIRLY CHEAP TO DO THEY DON'T NEED AND INDEED MAY EVEN SUFFER FROM LARGE ADVERTISING BUDGETS AND TELEVISION EXPOSURE THEY SELL BY WORD OF MOUTH AND UNLIKE BREWS AIMED AT BROAD AUDIENCES SPECIALTY BEERS DON'T LEND THEMSELVES TO BIGBUDGET MARKET RESEARCH WE CAN PLAY AROUND WITH BEERS THAT WE COULDN'T MAKE BEFORE BECAUSE THEY HAD TO BE ONEMILLIONBARREL BEERS SAYS VINCENT PRATTICO MARKETING MANAGER FOR COORS'S UNIBEV AND IF NOBODY BUYS IT WELL WE'VE LEARNED SOMETHING A LOT CHEAPER THAN WE COULD HAVE THROUGH TRADITIONAL RESEARCH HE SAYS FURTHERMORE BIG BREWERS HAVE SOME DISTINCT ADVANTAGES OVER LITTLE BREWERS IN MAKING 10 MILLION TO 50 MILLION BARRELS OF BEER A YEAR THE BIG GUYS HAVE PERFECTED A LEVEL OF QUALITY CONTROL THAT ELUDES SOME OF THE MICROBREWERS THEIR DISTRIBUTION NETWORKS ARE MORE SOPHISTICATED AND ENTRENCHED SO THEY CAN GET THE BEER ON THE SHELF EVEN IN RURAL AREAS THE BIG NATIONAL BREWERS HAVE PROFOUND STRENGTH IN THE MIDDLE PART OF THE COUNTRY SAYS PAUL SHIPMAN PRESIDENT OF RED HOOK BREWING CO OF SEATTLE THAT'S AN AREA WE MIGHT BYPASS STILL SMALL BREWERS AND SOME INDUSTRY OBSERVERS DOUBT THAT THE BIG BREWERS HOOKED ON HUGE TV AD BUDGETS AND THIRSTY FOR INSTANT BIGBARREL SUCCESSES ARE CAPABLE OF LOCALIZED MARKETING IT'S A BIG PROBLEM FOR ANHEUSER AND MILLER SAYS JOHN CHAPPEL MARKETING DIRECTOR OF LATROBE I DON'T THINK THEY'RE VERY GOOD AT SPECIALTY MARKETING FURTHER RIVALS DON'T THINK MOST BIG BREWERS CAN MAKE GOOD SPECIALTY BEERS MILLER RESERVE AND LOWENBRAU SUFFER FROM PLAINNESS SPECIALTY BEER MAKERS CLAIM THEY'RE NOT WILDLY DISTINCTIVE BUT FIT A POPULAR PALATE TO CAPTURE A LARGE SEGMENT OF THE MARKET ANCHOR BREWING'S MR MAYTAG SAYS AND THAT IS EXACTLY WHAT THE ROBUST SPECIALTY BEERS SEEK TO AVOID EVENTUALLY SOME INDUSTRY EXPERTS PREDICT THE BIG BREWERS WILL FORGE ALLIANCES WITH SMALLER BREWERS A BIG BREWER COULD HELP A SMALLER ONE GET DISTRIBUTION DO MARKET RESEARCH AND CONTROL QUALITY RED HOOK'S MR SHIPMAN SAYS IN RETURN THE SMALLER BREWERS COULD DO THE LOCAL MARKETING AND COME UP WITH THE CLEVER IDEAS SUCH AS FRUITBASED BEERS HE SAYS BUT FIRST SAYS MR WEINBERG THE CONSULTANT EXPECT THE BIG BREWERS TO MAKE A BARRELFUL OF MISTAKES AS THEY TRY TO MAKE AND MARKET SPECIALTY BRANDS AS COORS'S EARLY FUMBLING WITH KILLIAN'S SHOWS SUCCESS REQUIRES DEFT HANDLING FOR COORS THE NATION'S THIRDLARGEST BEER MAKER THE MOVE TO SPECIALTY BEERS HAS SOMETHING TO DO WITH IMAGE EXECUTIVES ADMIT THAT THE BREWER WANTS TO MEND ITS BATTERED REPUTATION AS A PURVEYOR OF BLAND LIGHT AND HIGHLY CARBONATED AMERICAN LAGERS WE HOPE TO SHOW CONSUMERS THAT COORS CAN DO MORE ROBUST BEERS SAYS MR PRATTICO BUT COORS ACTUALLY WAS THINKING BIG WHEN IT FIRST BOUGHT THE LICENSE TO BREW IRELAND'S KILLIAN'S ALE IN THE US IN 1981 WE THOUGHT IT WOULD BE THE NEXT MICHELOB SAYS GEORGE MANSFIELD BRAND MANAGER AT UNIBEV THE BRAND WAS BACKED BY A BIG MARKETING BUDGET THAT INCLUDED TV COMMERCIALS WITH ACTOR CHRISTOPHER PLUMMER WITHOUT IT HOW COULD A BEER HOPE TO FIGHT THROUGH THE CLUTTER OF ADVERTISEMENTS BILLBOARDS SPORTS SPONSORSHIPS AND STORE PROMOTIONS THROWN UP BY ITS BIG COMPETITORS ESPECIALLY ANHEUSERBUSCH BUT KILLIAN'S DIDN'T TAKE OFF AMERICANS WEREN'T READY FOR DARKER NICHE BEERS A DECADE AGO SAYS ART PEARCE AN INDEPENDENT COORS DISTRIBUTOR IN PHOENIX ALSO COORS EXECUTIVES NOW THINK THEIR MARKETING CONFUSED THE CONSUMER WAS IT A DOMESTIC BREW OR AN IMPORT NOTING THE PROBLEMS LOWENBRAU HAD AFTER IT WAS BOUGHT BY MILLER AND BREWED IN THE US COORS DIDN'T WANT TO HIGHLIGHT THE FACT THAT KILLIAN'S WAS BREWED DOMESTICALLY TOO MR MANSFIELD SAYS IN 1983 THE COMPANY BEGAN PITCHING THE ALE WHICH HAD MORE ALCOHOL THAN A REGULAR BEER AS A MALT LIQUOR TV SPOTS BILLBOARDS AND LIQUORSTORE ADS AIMED AT INNERCITY MARKETS FEATURED A 16OUNCE CAN WITH A CARTOON OF A RED HORSE SLIGHTLY REMINISCENT OF STROH'S SCHLITZ MALT LIQUOR BULL MR MANSFIELD THINKS THE LARGELY AFRICANAMERICAN MALTLIQUOR MARKET WAS AN INAPPROPRIATE ONE TO TARGET WITH IRISH ETHNICITY AND THE HEAVY FLAVOR DIDN'T APPEAL TO SCHLITZ DRINKERS IN 1984 COORS SHIFTED FOCUS AGAIN THIS TIME POSITIONING THE BRAND AGAINST IMPORTS USING THE TAG LINE KILLIAN'S RED INSTEAD THE COMPANY'S ADS CONTRASTED THE RED ALE AGAINST THE GREEN BOTTLES OF HEINEKEN AND BECK'S SINCE THE BREW'S LOW VOLUME DIDN'T JUSTIFY THE EXPENSE OF TV SPOTS THE COMPANY LIMITED ITS ADS TO POINTOFSALE POSTERS AND TO BILLBOARDS STILL THE BEER STAGNATED AND FINALLY IN 1987 COORS DECIDED THE PROBLEM WAS THE BREW ITSELF IT WAS EVERYONE'S FAVORITE BRAND IF THEY WERE HAVING JUST ONE SAYS MR MANSFIELD BUT IT WAS TOO HEAVY AND TOO ALCOHOLIC FOR BIGGER SALES KILLIAN'S WAS TONED DOWN TO A LAGER BUT RETAINED THE SAME FLAVORS AND COLOR OF THE ORIGINAL ALE OTHER CHANGES FOLLOWED INCLUDING A HIGHER PRICE AND SNAZZIER PACKAGING MARKETERS ALSO SWITCHED FROM A STUBBY BOTTLE TO ONE WITH A LONG NECK WHICH DIDN'T FIT IN COORS LIQUORSTORE CASES THAT PROMPTED RETAILERS TO PUT THE BEER INTO THE IMPORT CASE WE REALIZED ONLY 10 OF THE BEER DRINKERS WERE GOING TO THE COORS CASE SAYS MR MANSFIELD REFERRING TO THE COMPANY'S MARKET SHARE IN THE IMPORT CASE NEW CUSTOMERS THOSE NOT INTERESTED IN COORS'S LIGHTTASTING LAGERS WERE EXPOSED TO KILLIAN'S MANY FOR THE FIRST TIME THE BEER STARTED TO TAKE OFF BUT EVEN THOUGH SALES NOW MIGHT JUSTIFY SOME TV SPOTS MR MANSFIELD PERSUADED COORS TO STICK WITH GRASSROOTS MARKETING THE COMPANY BROUGHT OVER GEORGE KILLIAN GREATGREATGRANDSON OF THE ORIGINAL IRISH BREWER FOR ST PATRICK'S DAY IN CHICAGO SALES IN THAT CITY SOARED IN ATLANTA A BILLBOARD PLACED TO CATCH THE EYE OF THOSE MUCHCOVETED YOUNG PROFESSIONALS HEADING TO TONY PEACHTREE SQUARE HELPED BOOST SALES IN THAT CITY ONE OF KILLIAN'S BIGGEST MARKETS MR MANSFIELD AND THREE OTHER BREWERY EMPLOYEES HIT THE ROAD VISITING WHOLESALERS AND TALKING UP THE BRAND WE BECAME ROAD WARRIORS HE SAYS THE BEER APPEALS MOST TO URBAN DWELLERS AND HAS DONE POORLY IN TEXAS SAYS RAY CLYMER A WHOLESALER IN WICHITA FALLS I THINK TEXANS LIKE LIGHT BEERS AND THIS DOESN'T FALL IN THAT CATEGORY STILL WITH 1992 SALES OF 300000 BARRELS KILLIAN HAS NEARLY QUADRUPLED ITS VOLUME SINCE 1987 AND COORS ESTIMATES THAT 1993 SALES COULD REACH 480000 BARRELS THAT LED TO COORS'S CREATION OF UNIBEV LAST SPRING UNIBEV CAN GIVE THESE TINY BRANDS THE ATTENTION THEY NEED SAYS MR PRATTICO THE UNIT WILL MARKET THE SEASONAL BRANDS AND IS ALSO HANDLING AN AUSTRALIAN BEER THAT COORS IS BREWING UNDER LICENSE CALLED CASTLEMAINE XXXX THE UNIT ALSO HOUSES KILLIAN'S THE LESSON OF KILLIAN'S SAYS MR MANSFIELD IS PATIENCE THESE BEERS HAVE TO PERCOLATE THROUGH THE BEERDRINKING COMMUNITY THEY CAN'T BE SHOVED DOWN PEOPLE'S THROATS HE SAYS BUT WILL THE BIG BREWERS HEED THE LESSON MR MANSFIELD ISN'T SURE THE MORE COMPETITIVE THE INDUSTRY GETS HE SAYS THE MORE PRESSURE THERE IS FOR BRANDS TO PERFORM QUICKLY AND THE HARDER IT IS TO BE PATIENT 9401050057 940105 VIACOM HOLDS TALKS WITH BLOCKBUSTER ON ADDED FINANCING FOR PARAMOUNT BID BY RANDALL SMITH AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL WITH FRIDAY'S BIDDING DEADLINE NEARING VIACOM INC HELD LASTMINUTE TALKS WITH EXECUTIVES FROM BLOCKBUSTER ENTERTAINMENT CORP YESTERDAY ABOUT ADDITIONAL FINANCING FOR A NEW VIACOM BID FOR PARAMOUNT COMMUNICATIONS INC VIACOM MUST ACT BY THE END OF THE DAY FRIDAY TO PREVENT RIVAL QVC NETWORK INC FROM GARNERING 51 OF PARAMOUNT STOCK THE LEVEL REQUIRED TO CLOSE OUT THE THREEANDAHALF MONTH CONTEST UNDER BIDDING RULES AGREED TO BY BOTH QVC AND VIACOM QVC HAS A HIGHER OFFER OF 92 IN CASH FOR 51 OF PARAMOUNT SHARES PLUS SECURITIES FOR THE REMAINING SHARES WHICH HAS BEEN ENDORSED BY THE PARAMOUNT BOARD VIACOM HAS OFFERED 85 CASH FOR 51 OF PARAMOUNT PLUS SECURITIES FOR THE REMAINDER TRADERS VALUE QVC'S BID AT ROUGHLY 98 BILLION OR 8188 A SHARE AND VIACOM'S AT 94 BILLION OR 7843 A SHARE HOWEVER IF VIACOM DOESN'T REACH AGREEMENT WITH BLOCKBUSTER IN THE NEXT FEW DAYS ONE PERSON FOLLOWING THE TALKS SAID VIACOM WOULD CONSIDER SEEKING TO KEEP THE BATTLE ALIVE BY ASKING FOR MORE TIME TO MAKE A HIGHER BID ITS GOAL WOULD BE TO DISSUADE INVESTORS FROM SELLING THEIR STOCK TO QVC DEPRIVING ITS RIVAL OF THE NEEDED 51 THE GROUND RULES AGREED TO BY BOTH BIDDERS REQUIRE EACH BIDDER TO WITHDRAW ITS OFFER IF THE OTHER BIDDER GAINS 51 OF PARAMOUNT'S STOCK AFTER AN INITIAL 10DAY PERIOD THE WINNING BIDDER MUST KEEP ITS BID OPEN FOR AN ADDITIONAL 10 DAYS TO ALLOW ALL PARAMOUNT SHAREHOLDERS TO SELL THEIR STOCK TO THE WINNER QVC'S INITIAL 10DAY PERIOD EXPIRES AT MIDNIGHT FRIDAY THE RULES WERE DESIGNED TO AVOID PENALIZING SHAREHOLDERS FOR TENDERING THEIR STOCK TO THE LOSING BIDDER BUT SOME TRADERS WERE CONCERNED ABOUT THE POSSIBLITY THAT NEITHER SIDE WOULD GET 51 POSSIBLY TRIGGERING A TEMPORARY STALEMATE VIACOM IS ATTEMPTING TO PERSUADE BLOCKBUSTER AND NYNEX CORP WHICH HAVE ALREADY AGREED TO INVEST 18 BILLION IN VIACOM FOR ITS BID TO PROVIDE ADDITIONAL FUNDS FOR A HIGHER BID THE PERSON FOLLOWING THE TALKS SAID THAT VIACOM APPEARED TO BE FOCUSING ON OBTAINING MORE FUNDS FROM BLOCKBUSTER THIS PERSON SAID THAT VIACOM MIGHT NOT WANT TO THROW TOGETHER A NEW INVESTMENT STRUCTURE TOO HASTILY UNDER THE DEADLINE PRESSURE AND MIGHT INSTEAD APPEAL TO PARAMOUNT SHAREHOLDERS FOR ADDITIONAL TIME IF VIACOM RAISES ITS BID BEFORE THE FRIDAY DEADLINE EACH SIDE MUST KEEP ITS BID OPEN FOR 10 MORE DAYS SOME TRADERS SAID THAT UNLESS SUMNER REDSTONE VIACOM'S CHAIRMAN MADE A COMPELLING CASE TO BE GIVEN MORE TIME SUCH AN APPEAL PROBABLY WOULD BE IGNORED BY INVESTORS WHO WOULD GO AHEAD AND TENDER TO QVC REFLECTING CONCERNS THAT THE CONTEST MIGHT REMAIN UNRESOLVED EVEN IF VIACOM DOESN'T RAISE ITS BID BEFORE THE DEADLINE PARAMOUNT SHARES FELL 75 CENTS YESTERDAY TO 7750 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK HAS SAGGED FROM A MIDDECEMBER HIGH OF 82 REACHED AFTER THE DELAWARE APPEALS COURT RULED PARAMOUNT MUST SELL ITSELF TO THE HIGHEST BIDDER PARTLY BECAUSE THE PARAMOUNT BOARD DESIGNED A BIDDING PROCESS THAT SEEMS TO EMPHASIZE FAIRNESS OVER SPEED 9401050055 940105 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ILLUSTRATING ENDEMIC CORRUPTION IN CHINA AN EIGHTMONTH PROBE UNCOVERED THEFT OR MISUSE OF 95 MILLION BY ABOUT 300000 OFFICIALS IN JUST ONE PROVINCE THE XINHUA NEWS AGENCY SAID OFFICIALS IN ANHUI AN EASTERN PROVINCE USED BRIBERY EMBEZZLEMENT AND KICKBACKS TO FINANCE LUXURIOUS LIVING THE CORRUPTION INVESTIGATION FOUND THAT MISAPPROPRIATION OF ANHUI FUNDS DATED BACK TO THE 1950S PROPAGANDIZED AS AN ERA OF SOCIALIST VIRTUE AND SELFLESS SACRIFICE ANHUI IS ONE OF CHINA'S POOREST PROVINCES AS THE GAP BETWEEN COASTAL URBAN WEALTH AND RURAL INLAND POVERTY HAS SWELLED LOCAL OFFICIALS TYPICALLY COLLECTED MYRIAD ILLEGAL FEES FUELING PEASANT UNREST IN RECENT YEARS AND FORCING BEIJING TO MOUNT A CAMPAIGN AGAINST GRAFT SEPARATELY TWO BANK OF CHINA EMPLOYEES IN KUNMING FALSIFIED DOCUMENTS TO CREATE AN ACCOUNT FOR A THIRD MAN CREDITED HIM WITH 43 MILLION SENT THE MONEY TO OTHER BANKS WITHDREW IT AND FLED BEFORE BEING ARRESTED THE PEOPLE'S DAILY SAID JAPAN'S EDUCATION MINISTRY SAID CHILDREN'S EYESIGHT DETERIORATED TO THE WORST LEVELS EVER AND BLAMED INCREASING USE OF VIDEO GAMES AND MONITORS AND LONG STUDY PERIODS IN AN AGENCY SURVEY USING A JAPANESE SCALE OF EYESIGHT MEASUREMENT 62 OF HIGH SCHOOL STUDENTS HAD VISUAL POWER OF LESS THAN 10 THUS REQUIRING CONSULTATIONS WITH EYE SPECIALISTS FOR TREATMENT HALF OF JUNIOR HIGH SCHOOL STUDENTS AND A QUARTER OF ELEMENTARY SCHOOL PUPILS FELL BELOW THAT THRESHOLD HOME PRICES IN BRITAIN ROSE 33 LAST YEAR AS THE COUNTRY'S ECONOMIC UPTURN BOOSTED CONFIDENCE IN THE PROPERTY MARKET NATIONWIDE BUILDING SOCIETY SAID BUT THE MORTGAGE LENDER SAID THE MODERATE INCREASE WAS FROM A SHARPLY LOWER YEAREARLIER LEVEL LAST MONTH HOME PRICES AVERAGED 79065 UP FROM 76543 IN DECEMBER 1992 CITING THE LOWEST MORTGAGE RATES IN MORE THAN TWO DECADES NATIONWIDE EXPRESSED OPTIMISM ABOUT A RECOVERY FOR THE HOUSING MARKET THIS YEAR A FRENCH INDUSTRY MINISTRY STUDY CONCLUDED A PARTIAL OPENING OF THE STATE'S HUGE NATURAL GAS AND ELECTRICITY MONOPOLIES IS INEVITABLE AND URGED INTRODUCING SOME COMPETITIVE ASPECTS INTO THE CENTRALIZED SYSTEM CREATED IN 1946 THE REPORT RESPONDED TO PRESSURE IN THE EUROPEAN UNION FORMERLY THE EUROPEAN COMMUNITY TO LIBERALIZE NATIONAL ENERGY MONOPOLIES AND BENEFIT CUSTOMERS IT RECOMMENDED ALLOWING COMPANIES TO IMPORT ENERGY EXPANDING INDEPENDENT PRODUCERS' ROLE AND LETTING THEM EXPORT POWER AND PERMITTING SOME GAS DISTRIBUTION CONCESSIONS LIBYA REVERTED TO THE ISLAMIC LUNAR CALENDAR ABANDONING THE GREGORIAN CALENDAR INTRODUCED BY POPE GREGORY XIII IN 1582 AND USED BY MOST COUNTRIES MUSLIMS AND ARABS MARK IMPORTANT RELIGIOUS DATES BY LUNAR MONTHS IN THE CALENDAR FOR THE LUNAR ERA DATING FROM 622 AD AND LINKED TO THE PROPHET MOHAMMED THE YEAR IS ABOUT 11 DAYS SHORTER THAN THE SOLAR YEAR THE LIBYAN CALENDAR CHANGE IS AT LEAST THE SECOND UNDER MOAMMAR GADHAFI'S CULTURAL REVOLUTION BEGUN IN THE 1970S HE EARLIER REPLACED EUROPEANBASED NAMES OF MONTHS IN THE SOLAR CALENDAR WITH ARABIC NAMES RELATING MOSTLY TO THE WEATHER BELARUS TRIPLED CONSUMER PRICES FOR ELECTRICITY AND NATURAL GAS BLAMING RUSSIA WHICH SUPPLIES MUCH OF THE OTHER FORMER SOVIET REPUBLICS' ENERGY NEEDS AND RECENTLY INCREASED ITS PRICES BELARUS SAID THIS WAS RUINING OUR ECONOMY CAUSING A REAL CRISIS AND URGED RUSSIA TO CHARGE ITS DOMESTIC PRICES FOR OIL AND NATURAL GAS EXPORTS TO BELARUS RUSSIA EVENTUALLY WANTS TO BRING ITS ENERGY EXPORT PRICES IN LINE WITH WORLD MARKET PRICES A SENIOR RUSSIAN GOVERNMENT OFFICIAL ASSERTED THAT CRIME SYNDICATES HAVING BECOME MORE PROFESSIONAL IN COORDINATING ACTIVITIES IN VARIOUS REGIONS CONTROL ABOUT 40000 STATERUN AND PRIVATE COMPANIES ORGANIZED GANGS ALSO ARE THRIVING ON TRADE IN ARMS ILLICIT DRUGS AND STOLEN CARS FIRST DEPUTY INTERIOR MINISTER MIKHAIL YEGOROV SAID NOTING THAT MONTHLY CRIME REPORTS INCLUDED BETWEEN 10 AND 15 CASES OF HOSTAGETAKING MORE THAN 30 ARMED CLASHES BETWEEN CRIMINAL GANGS AND ABOUT 700 CASES OF RACKETEERING AT LEAST A DOZEN MURDERS LAST YEAR WERE LINKED TO ORGANIZED CRIME INCLUDING THE KILLINGS OF TWO PROMINENT FINANCIERS LAST MONTH RUSSIAN GANGS HAVE GROWN AMID A FLOURISHING BLACKMARKET ECONOMY EXTORTING PROTECTION MONEY AND SECURING ALLIES IN THE POLICE AND BUREAUCRACY MANY RUSSIAN BUSINESSMEN EMPLOY ARMED BODYGUARDS TO PROTECT AGAINST RACKETEERS ROBBERS AND HIRED KILLERS MR YEGOROV TRIED TO DISPEL DOUBTS ABOUT THE EFFICIENCY OF LAW ENFORCEMENT WHILE 58 OF JAPANESE SURVEYED FOR A LIFE INSURER SAID WOMEN SHOULD WED 28 SAID MARRIAGE WAS UNNECESSARY IF THEY WERE ECONOMICALLY INDEPENDENT THIS INDICATES AN ATTITUDE SHIFT FROM A 1987 GOVERNMENT POLL IN WHICH 74 SAID MARRIAGE WAS NECESSARY AND 21 SAID IT WASN'T BOLIVIA'S 1993 INFLATION RATE FELL TO 93 THE LOWEST IN 17 YEARS AND DOWN FROM 24000 IN 1985 BECAUSE OF AUSTERITY AND FREEMARKET MEASURES 9401050054 940105 TECHNOLOGY POINT FOUNDATION SELLS WELL COMPUTER SERVICE TO KATZLED GROUP SAUSALITO CALIF THE NONPROFIT POINT FOUNDATION SAID IT SOLD THE REMAINING SHARES OF ITS WHOLE EARTH 'LECTRONIC LINK ONLINE COMPUTER SERVICE ALSO CALLED THE WELL TO THE COFOUNDER OF ROCKPORT SHOE CO A WELL SPOKESMAN DECLINED TO GIVE A VALUE FOR THE TRANSACTION THE NEW OWNER BRUCE KATZ AND HIS ROSEWOOD STONE INVESTMENT GROUP HAVE OWNED 50 OF THE WELL SINCE 1991 MR KATZ PLANS TO INVEST MORE MONEY IN THE SERVICE TO MAKE IT EASIER TO USE A WELL SPOKESMAN SAID CURRENTLY THE SERVICE'S 8000 SUBSCRIBERS GAIN ACCESS TO THE SERVICE THROUGH A COMMAND LINE SYSTEM IN WHICH THEY TYPE COMMANDS AFTER A PROMPT MR KATZ PLANS TO INTRODUCE A GRAPHICAL INTERFACE SYSTEM WHICH ALLOWS USERS TO COMMAND THE COMPUTER BY POINTING TO ICONS MR KATZ 47 YEARS OLD SOLD ROCKPORT SHOE TO REEBOK INTERNATIONAL LTD IN 1986 AND IS CREDITED WITH HELPING TO START THE FITNESS WALKING MOVEMENT IN THE US THE POINT FOUNDATION WILL CONTINUE TO PUBLISH THE WHOLE EARTH REVIEW AND WHOLE EARTH CATALOGS 9401050053 940105 TECHNOLOGY BRIEF BOSTON TECHNOLOGY INC LICENSING ACCORD TO SETTLE FIGHT WITH THEIS RESEARCH BOSTON TECHNOLOGY INC BOSTON SAID IT ENTERED INTO A LICENSING AGREEMENT WITH THEIS RESEARCH INC SETTLING LITIGATION OVER A PATENT DISPUTE INVOLVING VOICEPROCESSING EQUIPMENT THE COMPANY SAID IT WILL PAY A FEE BUT NO ROYALTIES TO THEIS RESEARCH A GURNEE ILL COMPANY THAT HOLDS SEVERAL PATENTS FOR VOICEMAIL TECHNOLOGY THE SIZE OF THE PAYMENT WASN'T DISCLOSED THE LITIGATION IS PART OF A BROADER PATENTINFRINGEMENT LAWSUIT THEIS RESEARCH FILED IN MARCH AGAINST BELL ATLANTIC CORP SEVERAL OF ITS UNITS AND A NUMBER OF ITS SUPPLIERS INCLUDING BOSTON TECHNOLOGY LITIGATION WILL CONTINUE AGAINST BELL ATLANTIC AND OTHER SUPPLIERS BOSTON TECHNOLOGY SAID THE PACT IS NOT EXPECTED TO HAVE ANY MATERIAL ADVERSE IMPACT ON ITS FINANICIAL PERFORMANCE DR JOHN CW TAYLOR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOSTON TECHNOLOGY SAID WE BELIEVE THAT THIS AGREEMENT IS IN THE BEST INTEREST OF BOTH PARTIES 9401050052 940105 WHO'S NEWS VISHAY INTERTECHNOLOGY INC VISHAY INTERTECHNOLOGY INC MALVERN PA GERALD PAUL 44 YEARS OLD WAS NAMED TO THE NEW POSITION OF PRESIDENT AT VISHAY ELECTRONIC COMPONENTS EUROPE A UNIT OF THIS ELECTRONIC COMPONENTS MAKER THIS IS AN ADDITIONAL POST FOR MR PAUL A PHYSICIST WHO IS CURRENTLY MANAGING DIRECTOR OF DRALORIC ELECTRONIC GMBH AND ROEDERSTEIN GMBH BOTH UNITS OF VISHAY BASED IN GERMANY 9401050051 940105 BUSINESS BRIEF CANADIAN IMPERIAL BANK CONCERN AGREES TO PURCHASE GROUPE MFQ INSURANCE UNIT CANADIAN IMPERIAL BANK OF COMMERCE SAID IT AGREED TO ACQUIRE PERSONAL INSURANCE CO OF CANADA IN AN EFFORT TO ACCELERATE THE BANK'S MOVE INTO THE COUNTRY'S RECENTLY DEREGULATED INSURANCE MARKET CANADIAN IMPERIAL ONE OF CANADA'S LARGEST BANKS SAID IT WILL PAY 83 MILLION CANADIAN DOLLARS US632 MILLION TO ACQUIRE PERSONAL INSURANCE FROM GROUPE MFQ INC A MUTUAL INSURANCE CONCERN OWNED BY QUEBEC CIVIL SERVANTS TORONTOBASED PERSONAL INSURANCE WHICH HAS TOTAL ASSETS OF C177 MILLION SELLS GROUP HOME AND AUTO POLICIES TO CORPORATIONS ACROSS CANADA CANADIAN IMPERIAL WAS THE FIRST AMONG THE COUNTRY'S BIG BANKS TO LAUNCH AN INSURANCE BUSINESS LATE LAST YEAR SO FAR THE BANK OFFERS ONLY AN ACCIDENTAL DEATH POLICY BUT IT PLANS TO ROLL OUT A FULL RANGE OF INDIVIDUAL AND GROUP AUTO HOME LIFE AND HEALTH INSURANCE POLICIES OVER THE NEXT TWO YEARS OTHER CANADIAN BANKS ALSO HAVE INDICATED THEY PLAN TO SET UP INSURANCE SUBSIDIARIES BY CONTRAST US BANKS CAN SELL BUT CAN'T UNDERWRITE INSURANCE 9401050050 940105 BUSINESS BRIEF MOTHERS WORK INC APPAREL RETAILER TO ACQUIRE PAGE BOY A BIG COMPETITOR MATERNITY APPAREL RETAILER MOTHERS WORK INC PHILADELPHIA SAID IT AGREED TO ACQUIRE PAGE BOY CO A MAJOR COMPETITOR THE TERMS WEREN'T DISCLOSED MOTHERS WORK SAID THE DEAL IS CONTINGENT ON CERTAIN CONDITIONS IT DIDN'T DESCRIBE BUT SAID IT EXPECTS TO CLOSE THE DEAL WITHIN A MONTH SEPARATELY MOTHERS WORK NAMED 36YEAROLD ROBERT E POLLOCK TO THE NEWLY CREATED POST OF VICE PRESIDENT REAL ESTATE MR POLLOCK IS CURRENTLY CHIEF OPERATING OFFICER AT PAGE BOY ALSO VANA LONGWELL 47 WILL JOIN THE COMPANY AS VICE PRESIDENT AND GENERAL MERCHANDISING MANAGER THE POST HAS BEEN VACANT SINCE APRIL 1993 MS LONGWELL WAS PRESIDENT OF WAINSCOTT SPORTSWEAR IN NEW YORK A PRIVATELABEL APPAREL CONCERN THE COMPANY IS A DIVISION OF FANG BROTHERS HONG KONG PAGE BOY A DALLASBASED CHAIN OF 22 MATERNITY STORES HAD REVENUE OF ABOUT 7 MILLION IN 1993 MOTHERS WORK HAS ANNUAL REVENUE OF ABOUT 30 MILLION 9401050049 940105 INTERNATIONAL BANK OF AMERICA SETTLES CLAIMS OF PENSION FUND LONDON AP BANK OF AMERICA AGREED TO PAY 25 MILLION 37 MILLION TO SETTLE CLAIMS FROM A PENSION PLAN LOOTED BY ROBERT MAXWELL THE LATE PUBLISHER TRUSTEES FOR THE PENSION PLAN OF MR MAXWELL'S FORMER COMPANY MIRROR GROUP NEWSPAPERS PLC HAD BEEN SEEKING 38 MILLION EACH FROM THE BANKAMERICA CORP UNIT AND ZURICHBASED CS HOLDING'S CREDIT SUISSE BANK OF AMERICA BASED IN SAN FRANCISCO HAD ACTED AS CUSTODIAN FOR STOCKS HELD BY THE MIRROR PENSION PLANS AND PASSED THEM ALONG TO CREDIT SUISSE AS SECURITY FOR LOANS MADE TO MR MAXWELL'S PRIVATE BUSINESSES AFTER MR MAXWELL WAS FOUND DEAD AT SEA IN NOVEMBER 1991 FINANCIAL IRREGULARITIES INCLUDING HUNDREDS OF MILLIONS IN MISSING PENSION FUND MONEY WERE DISCOVERED UNDER THE SETTLEMENT ANNOUNCED YESTERDAY BANK OF AMERICA ADMITTED NO WRONGDOING BANK OF AMERICA'S LONDONBASED ASSISTANT GENERAL COUNSEL TOM BROOKS CALLED THE SETTLEMENT AN APPROPRIATE MEANS OF CONTRIBUTING TO THE RESTORATION OF THE PENSION FUNDS WITHOUT THE DELAY AND UNCERTAINTY TO PENSIONERS AND THE BANK OF LENGTHY COURT PROCEEDINGS AND OF PUTTING THIS CLAIM BY THE TRUSTEES BEHIND US 9401050048 940105 BUSINESS BRIEF TYSON FOODS INC FOUR MORE PLANTS PLANNED FOR PROCESSING OF POULTRY TYSON FOODS INC SAID IT WILL BUILD FOUR POULTRYPROCESSING PLANTS AS PART OF A 400 MILLION EXPANSION TO CAPITALIZE ON AMERICANS' INCREASING CONSUMPTION OF CHICKEN AS WELL AS HOPES FOR GREATER FOREIGN DEMAND FOR US BIRDS THE NEW PLANTS ARE IN ADDITION TO PLANS THE SPRINGDALE ARK COMPANY ANNOUNCED LAST YEAR TO BUILD A POULTRY COMPLEX IN SEDALIA MO AND TO EXPAND FOUR EXISTING SITES TYSON ALREADY THE BIGGEST US POULTRY PRODUCER SAID THE COMBINED EXPANSION PLANS WILL INCREASE ITS POULTRYPROCESSING CAPACITY BY AT LEAST 30 TO MORE THAN 35 MILLION BIRDS A WEEK TYSON ESTIMATES THAT THE US POULTRY INDUSTRY IS GROWING ABOUT 4 A YEAR AND JOHN M MCMILLIN AN ANALYST AT PRUDENTIAL SECURITIES INC SAID TYSON ITSELF IS GROWING EVEN FASTER MAKING IT ONE OF THE FEW FOOD COMPANIES WITH DOUBLEDIGIT PERCENTAGE GROWTH 9401050047 940105 POLITICS & POLICY BENTSEN PROPOSES SHARPLY BOOSTING GUN DEALERS' FEE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TREASURY SECRETARY LLOYD BENTSEN PROPOSED A 60FOLD INCREASE IN THE GUN DEALERS' LICENSE FEE A MOVE HE PREDICTED WOULD SHARPLY DECREASE THE NUMBER OF GUN DEALERS THE FEE BOOST TO 600 FROM 10 CURRENTLY WOULD ELIMINATE 200000 OF THE 284000 FEDERALLY LICENSED GUN DEALERS MR BENTSEN ESTIMATED THE INCREASED FEE WOULD HAVE TO BE APPROVED BY CONGRESS THE TREASURY SECRETARY SPEAKING AT A LAWENFORCEMENT AWARDS CEREMONY SAID THAT THE REMAINING LICENSEHOLDERS ARE THE ONLY TRUE GUN DEALERS WHO SELL FROM RETAIL SHOPS MOST PEOPLE WITH DEALERS' LICENSES HE EXPLAINED EITHER SELL FROM THEIR HOMES AND CARS OR DON'T SELL GUNS AT ALL MANY BUY DEALERS' LICENSES SIMPLY SO THEY CAN BUY GUNS FOR THEMSELVES WHOLESALE MR BENTSEN SAID IT'S NO COINCIDENCE THAT YESTERDAY'S SPEECH HIS FIRST OF 1994 DEALT WITH CRIME I WANT YOU TO UNDERSTAND THE SYMBOLISM OF THAT HE SAID BECAUSE THIS YEAR FOR ME CRIME IS AN ABSOLUTE PRIORITY ANDREW MOLCHAN DIRECTOR OF THE NATIONAL ASSOCIATION OF FEDERALLY LICENSED FIREARMS DEALERS SAID NOTHING IN THE BENTSEN PLAN HAS ANYTHING TO DO WITH EFFECTIVE LAW ENFORCEMENT OR CRIME REDUCTION THERE IS NO EVIDENCE THIS WILL HAVE ANY MEASURABLE EFFECT ON CRIME IN AMERICA STILL MR MOLCHAN SAID HIS ORGANIZATION'S MEMBERS ARE SPLIT ON THE ISSUE OF INCREASING FEES LARGER DEALERS FAVOR BOOSTING FEES BECAUSE THAT MAY DRIVE AWAY SMALLER COMPETITORS SMALLER DEALERS OPPOSE HIGHER FEES THE SOCALLED BRADY BILL WHICH TAKES EFFECT FEB 28 RAISES THE GUN DEALERS' LICENSE FEE TO 66 A YEAR OR 200 FOR THREE YEARS THAT ISN'T ENOUGH MR BENTSEN SAID TO SELL LIQUOR IN FIVE BOROUGHS IN NEW YORK IT COSTS ABOUT 5250 FOR A THREEYEAR LICENSE HE SAID TO TEACH SPANISH AND HISTORY IN NEW YORK IT COSTS 200 FOR A TEACHER'S CERTIFICATE BUT TO SELL GUNS IN NEW YORK IT COSTS ONLY 66 THAT ISN'T JUST RIDICULOUS THAT'S RECKLESS TREASURY OFFICIALS SAID THEY ALSO HOPE TO REDUCE THE NUMBER OF GUN DEALERS BY EXPANDING A NEW YORK PILOT PROGRAM UNDER WHICH THE FEDERAL BUREAU OF ALCOHOL TOBACCO AND FIREARMS DEVELOPS ENHANCED SCREENING AND INVESTIGATIVE PROCEDURES FOR FIREARMS LICENSE APPLICANTS AFTER THIS PROGRAM WAS STARTED 90 OF THE APPLICANTS FOR THOSE LICENSES EITHER WITHDREW THEIR REQUEST OR THEY WERE TURNED DOWN AFTER WE DID SERIOUS BACKGROUND INVESTIGATIONS MR BENTSEN SAID AND BEFORE THAT WAS DONE 90 OF THE APPLICANTS GOT THEIR GUN LICENSES MR BENTSEN SAID HE ALSO HAS DIRECTED THE BUREAU TO IDENTIFY ALL GUN DEALERS FOR LOCAL POLICE HE ADDED THAT THE BUREAU IS DEVELOPING A SYSTEM THAT LOCAL AUTHORITIES COULD USE TO CHARGE USER FEES TO COVER THE COSTS OF DOING BACKGROUND CHECKS ON WOULDBE GUN PURCHASERS THE BRADY BILL PROVIDES A WAITING PERIOD FOR GUN PURCHASES SO THAT SUCH CHECKS CAN BE PERFORMED THE TREASURY SECRETARY SAID THE PROPOSED 600 LICENSE FEE FOR GUN DEALERS REFLECTS THE GOVERNMENT'S COST OF PROVIDING THE LICENSES HE SAID VARIOUS OTHER MEASURES HE ANNOUNCED WOULD COST 81 MILLION ANNUALLY 71 MILLION WOULD BE PROVIDED BY THE SENATE PASSED VERSION OF ANTICRIME LEGISLATION AND THE REMAINING 10 MILLION WOULD COME FROM OTHER SOURCES MR BENTSEN ACKNOWLEDGED THAT HIS GUNCONTROL PROPOSALS WOULDN'T STOP ALL CRIME AS MUCH AS THE PRESIDENT AND I THINK OF THESE INITIATIVES WE WON'T STOP VIOLENCE UNTIL WE'VE FIXED SOME SOCIETAL PROBLEMS HE SAID WE WANT TO MAKE IT HARDER FOR THE CRIMINALS TO GET GUNS AND EASIER FOR US TO FIND THE CRIMINALS THAT USE THEM 9401050046 940105 MOBIL TO POST CHARGE TOTALING 250 MILLION ACTION FOR FOURTH QUARTER REFLECTS OILPRICE DROP EFFECT ON INVENTORIES BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL MOBIL CORP SAID IT WILL REPORT A 250 MILLION CHARGE FOR THE FOURTH QUARTER TO REFLECT THE DECLINE IN VALUE OF ITS PETROLEUM INVENTORIES CAUSED BY THE MORETHAN25 PLUNGE IN 1993 PRICES MOBIL THE NATION'S SECONDLARGEST OIL COMPANY SAID THE CHARGE IS NONCASH BUT NECESSARY TO MEET ACCOUNTING RULES THAT REQUIRE THE COMPANY TO VALUE ITS INVENTORIES BASED ON MARKET PRICES FOR CRUDE OIL AND PETROLEUM PRODUCTS ON DEC 31 OF EACH YEAR IN 1993 WORLD CRUDE PRICES FELL BY MORE THAN 5 A BARREL TO FIVEYEAR LOWS OTHER LARGE OIL COMPANIES MAY HAVE TO TAKE SIMILAR CHARGES BUT THE NEED FOR THEM AND THEIR SIZE DEPENDS ON EACH COMPANY'S ACCOUNTING METHODS AND WHEN EACH CONCERN ADOPTED A PARTICULAR ACCOUNTING METHOD INVESTORS SEEMED TO SHRUG OFF THE NEWS AS MANY OIL STOCKS INCLUDING MOBIL'S ROSE YESTERDAY MOBIL SHARES GAINED 50 CENTS OR 06 TO CLOSE AT 80125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE CHARGE IS REALLY A NONEVENT SAID MICHAEL MAYER AN OIL ANALYST AT WERTHEIM SCHRODER & CO IN BURLINGAME CALIF MR MAYER SAID THAT DESPITE THE PLUNGE IN CRUDE PRICES HE STILL RECOMMENDS THE PURCHASE OF MOBIL STOCK BECAUSE HE BELIEVES THE COMPANY WILL RECORD STRONG EARNINGS FROM ITS GASOLINEREFINING AND MARKETING BUSINESS AND NATURALGAS OPERATIONS HE ALSO SAID THERE'S A 5050 CHANCE THE COMPANY WILL RAISE ITS DIVIDEND LATER THIS YEAR MOBIL BASED IN FAIRFAX VA ADOPTED IN 1982 WHAT IS CALLED LASTIN FIRSTOUT ACCOUNTING OR LIFO FOR ITS INTERNATIONAL REFINING AND MARKETING OPERATIONS UNDER LIFO INVENTORIES ARE VALUED INITIALLY BASED ON MARKET PRICES AT THE TIME IN 1982 OIL PRICES WERE ABOVE 30 A BARREL CURRENT WORLD OIL PRICES ARE BELOW 15 A BARREL CAUSING THE CHARGE MOBIL TOOK A SIMILAR CHARGE IN 1987 BUT HASN'T TAKEN ONE IN OTHER YEARS BECAUSE THE INVENTORY VALUE OF ITS DOMESTIC OPERATIONS IN EFFECT OFFSET THE DECLINE IN THE FOREIGN INVENTORIES A SPOKESMAN SAID MOBIL ADOPTED LIFO FOR ITS US OPERATIONS IN 1957 WHEN CRUDE PRICES WERE ONLY A COUPLE OF DOLLARS A BARREL MOST OTHER LARGE OIL COMPANIES ADOPTED LIFO FOR ALL THEIR OPERATIONS IN THE 1970S EARLIER THAN MOBIL PAUL TING AN OIL ANALYST AT OPPENHEIMER & CO IN NEW YORK SAID 1979 WAS A CRUCIAL YEAR BECAUSE OIL PRICES STARTED OUT IN THE TEENS BEFORE BEGINNING A SHARP RISE IF YOU DID IT BEFORE 1979 THE ADJUSTMENT WON'T BE THAT MUCH HE SAID A MOBIL SPOKESMAN DECLINED TO ESTIMATE NET INCOME FOR THE 1993 FOURTH QUARTER IN THE 1992 FOURTH QUARTER MOBIL HAD NET INCOME OF 514 MILLION OR 125 A SHARE ON REVENUE OF 1724 BILLION THE QUARTER INCLUDED 69 MILLION OF CHARGES MR MAYER ESTIMATED THAT MOBIL'S OPERATING PROFIT IN THE 1993 FOURTH QUARTER WAS DOWN ONLY SLIGHTLY FROM 1992 AN ACCOMPLISHMENT GIVEN THE PLUNGE IN CRUDE PRICES SOME OTHER ANALYSTS SAY THAT MOBIL'S OPERATING PROFIT ACTUALLY COULD HAVE RISEN A BIT 9401050045 940105 BUSINESS BRIEF MAXWELL LABORATORIES INC DIVISION TO BE PHASED OUT AFTER IT FAILED TO WIN JOB MAXWELL LABORATORIES INC SAID IT WOULD PHASE OUT ITS BROBECK UNIT WHICH DEVELOPS AND MAKES PROTON SYNCHROTRONS TO TREAT CANCER AFTER THE DIVISION FAILED TO WIN A HIGHLY ANTICIPATED 20 MILLION CONTRACT FROM MASSACHUSETTS GENERAL HOSPITAL IN BOSTON THE COMPANY SAID IT WAS EXPLORING ARRANGEMENTS IN WHICH MAXWELL WOULD RETAIN A STAKE IN BROBECK BUT THAT IT ALSO WAS PREPARED TO SELL THE UNIT OUTRIGHT IF THE UNIT HAS TO BE LIQUIDATED MAXWELL SAID THE COMPANY WOULD SUSTAIN A ONETIME CHARGE OF ABOUT 1 MILLION THE COMPANY SAID BROBECK WHICH HAS ABOUT A DOZEN FULLTIME EMPLOYEES HAS BEEN LOSING 100000 A MONTH FOR THE PAST TWO YEARS SAN DIEGOBASED MAXWELL DESIGNS AND MAKES EQUIPMENT TO GENERATE HIGHVOLTAGE BURSTS OF ELECTRICAL ENERGY WITH DEFENSE COMMERCIAL AND ENERGY APPLICATIONS 9401050044 940105 BUSINESS BRIEF CLOROX CO PACT SET TO BUY SOME ASSETS OF BAYER AG'S MILES UNIT CLOROX CO SAID IT REACHED A DEFINITIVE AGREEMENT TO BUY THE ASSETS OF THE SOS CLEANINGPRODUCTS BUSINESS OF PITTSBURGHBASED MILES INC A UNIT OF BAYER AG THE ACQUISITION IS SUBJECT TO REGULATORY CLEARANCE TERMS WEREN'T DISCLOSED SOS HAS ANNUAL SALES OF WELL OVER 50 MILLION ONE INDUSTRY SOURCE SAID CLOROX OAKLAND CALIF HAD SALES OF 16 BILLION FOR FISCAL 1993 ENDED JUNE 30 THE ACQUISITION WOULD INCREASE CLOROX'S PRESENCE IN THE GLASS AND SURFACE CLEANERS MARKET CLOROX WOULD ACQUIRE TUFFY PLASTIC SCOURING PADS AND OTHER SOS CLEANING PRODUCTS INCLUDING STEELWOOL PADS IN THE US IT ALSO WOULD ACQUIRE JETS SOAP PADS MARKETED IN CANADA SOS OPERATIONS IN BEDFORD PARK ILL AND ETOBICOKE ONTARIO ARE INCLUDED IN THE DEAL 9401050043 940105 INVESTIGATORS QUERY FORMER PRUDENTIAL BROKERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERAL AND STATE PROSECUTORS ARE SEEKING EVIDENCE OF WRONGDOING BY SENIOR PRUDENTIAL SECURITIES INC MANAGEMENT FROM FORMER PRUDENTIAL BROKERS WHO HAVE ACCUSED THE BROKERAGE FIRM OF MISLEADING INVESTORS PEOPLE FAMILIAR WITH THE MATTER SAY THE SECURITIES AND EXCHANGE COMMISSION HAS ASKED SEVERAL OF THE FORMER PRUDENTIAL BROKERS TO PRODUCE ALL SALES MATERIALS RECORDS NOTES FROM MEETINGS AND COMMUNICATIONS WITH SENIOR PRUDENTIAL SECURITIES MANAGEMENT INVOLVING THE PARTNERSHIPS THE PEOPLE SAID TEXAS SECURITIES REGULATORS HAVE QUESTIONED SEVERAL FORMER BROKERS REQUESTING DATA ON HOW PRUDENTIAL MANAGERS SOUGHT TO MARKET THE FIRM'S PARTNERSHIP PRODUCTS TO INVESTORS AND THE US ATTORNEY'S OFFICE IN MANHATTAN PLANS TO GRILL FORMER BROKERS ON SIMILAR SALES PRACTICES AS PART OF A BROAD CRIMINAL CASE THE PEOPLE SAID IT IS LIKELY THE FORMER BROKERS WHO GIVE EVIDENCE WILL BE GRANTED IMMUNITY IN THE INVESTIGATIONS THE PEOPLE ADDED THE RECENT MOVES SUGGEST THE FOCUS OF THE CIVIL AND CRIMINAL CASES INVOLVING PRUDENTIAL INSURANCE CO OF AMERICA'S SECURITIES UNIT IS SHIFTING TO WHAT BROKERS WERE TOLD IN A BID TO BUILD A CASE AGAINST CURRENT AND FORMER SENIOR PRUDENTIAL MANAGERS THE SEC AND US ATTORNEY'S OFFICE ALREADY ARE EXAMINING WHAT ROLE PRUDENTIAL'S LEGAL DEPARTMENT HAD IN REVIEWING AND APPROVING PROSPECTUSES AND OTHER MARKETING MATERIAL FOR THE PARTNERSHIPS NOW PROSECUTORS ARE TRYING TO FIND WITNESSES THAT WILL SAY THE FIRM LIED TO THEM SAID A PERSON WITH KNOWLEDGE OF THE INVESTIGATIONS FEDERAL AND STATE PROSECUTORS INCLUDING WILLIAM MCLUCAS THE SEC'S ENFORCEMENT CHIEF KENNETH VIANALE AN ASSISTANT US ATTORNEY AND DENISE VOIGT CRAWFORD TEXAS SECURITIES COMMISSIONER DECLINED TO COMMENT PRUDENTIAL SALES DOCUMENTS URGED BROKERS TO STRESS LOW RISK AND HIGH ANNUAL RETURNS OFTEN AS STEEP AS 20 OR MORE IN PEDDLING THE PARTNERSHIPS MANY OF THOSE DEALS HAVE SINCE SOURED LEADING MANY CLIENTS TO COMPLAIN THAT THEY WERE MISLED ABOUT THE RISKS AND RETURNS OF THE PRODUCTS IN OCTOBER THE SEC AND 49 STATE SECURITIES REGULATORS ACCUSED PRUDENTIAL OF WIDESPREAD FRAUD IN SELLING ABOUT 8 BILLION OF THE PARTNERSHIPS PRUDENTIAL AGREED TO PAY AT LEAST 330 MILLION INTO A RESTITUTION FUND FOR INVESTORS SOME BROKERS BEING QUESTIONED BY REGULATORS HAD FILED ARBITRATION CASES WITH THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AGAINST PRUDENTIAL SECURITIES CONTENDING THAT THE FIRM DELIBERATELY LAUNCHED A SALES CAMPAIGN TO DECEIVE INVESTORS INTO BUYING THE PARTNERSHIPS PRUDENTIAL LAST YEAR SETTLED CASES WITH FOUR FORMER BROKERS PAYING A LAW FIRM REPRESENTING THE BROKERS A TOTAL OF 700000 PEOPLE FAMILIAR WITH THE CASE SAID DARYL BRISTOW OF BRISTOW HACKERMAN WILSON & PETERSON THE HOUSTON FIRM THAT REPRESENTED THE FORMER BROKERS DIDN'T RETURN A CALL SEEKING COMMENT ON THE SETTLEMENT PRUDENTIAL WHICH DIDN'T ADMIT OR DENY THE ACCUSATIONS DECLINED TO COMMENT THE BROKER FOCUS COMES AS ANOTHER ARBITRATION CASE FILED BY A FORMER PRUDENTIAL BROKER AGAINST THE FIRM IS SCHEDULED FOR A HEARING NEXT WEEK IN THAT CASE FILED WITH THE NASD IN FLORIDA FORMER PRUDENTIAL BROKER WILLIAM WEBB ACCUSED THE FIRM OF AMONG OTHER THINGS PRESSURING BROKERS TO AGGRESSIVELY PEDDLE THE PARTNERSHIPS WITHOUT DISCLOSING THE RISKS MICHAEL CRIDEN MR WEBB'S LAWYER IN MIAMI DECLINED TO COMMENT AS DID PRUDENTIAL FORMER TOP PRUDENTIAL BROKERS WERE ADVISED IN SALES SCRIPTS HOW TO PERSUADE VARIOUS INVESTOR TYPES TO BUY PARTNERSHIPS IN SELLING TO ENTHUSIASTICS A 1987 SALES SCRIPT TELLS BROKERS TO SAY PILING UP BIG BUCKS IS THE NAME OF THE GAME AND HAVE I GOT A GAME PLAN FOR YOU PRUDENTIAL WHICH NOW CONCEDES THAT THE SALES SHEETS WERE WRONG HAS SAID THAT THEY WERE USED AT A SMALL CONFERENCE WITH JUST A HANDFUL OF PEOPLE PRESENT BUT SEVERAL BROKERS SAY THE SALES DOCUMENTS WERE PRESENTED AT A NATIONAL CONFERENCE OF THE FIRM'S TOPSELLING PARTNERSHIP BROKERS AFFIDAVITS FILED IN VARIOUS COURT CASES FROM ABOUT THREE DOZEN FORMER PRUDENTIAL SECURITIES BROKERS SAY THEY WERE URGED TO PLAY DOWN RISKS AND HAVE INVESTORS BUY PARTNERSHIPS WITHOUT RELYING ON THE TELLALL DOCUMENT KNOWN AS THE PROSPECTUS IF BROKERS SPENT THE TIME NECESSARY TO READ AND TRY TO INTERPRET EACH PROSPECTUS THEIR TIME WOULD BE TAKEN AWAY FROM TELEPHONE SOLICITATIONS AND EARNING COMMISSIONS FOR THE FIRM THE AFFIDAVITS SAID IT WAS FURTHER BELIEVED THAT RETAIL CUSTOMERS WOULD NOT READ OR UNDERSTAND PROSPECTUSES AND WOULD BE SO CONFUSED THAT THEY WOULD NOT PURCHASE PARTNERSHIPS THE AFFIDAVITS SAID BY PROVIDING GLOSSY BROCHURES AND UNIFORM SALES HIGHLIGHTS TO BROKERS AND CUSTOMERS THE FIRM COULD HIGHLIGHT AND EMPHASIZE THE REASONS WHY PRUDENTIAL SUGGESTED A DIRECT INVESTMENT SHOULD BE MADE AND MINIMIZE ANY RISK DISCLOSURES THAT PROSPECTUSES PRESENTED THE AFFIDAVITS SAID SEPARATELY THE CALIFORNIA CORPORATIONS COMMISSIONER ASKED A FEDERAL JUDGE TO POSTPONE FOR 90 DAYS A JAN 19 FAIRNESS HEARING IN A BIG CLASSACTION CASE INVOLVING PRUDENTIAL'S ENERGY PARTNERSHIPS COMMISSIONER GARY MENDOZA ARGUED THAT 130000 INVESTORS IN THE CASE FILED IN A NEW ORLEANS FEDERAL COURT DON'T HAVE ENOUGH TIME TO GAUGE THE FAIRNESS OF A 120 MILLION SETTLEMENT OFFER BY PRUDENTIAL 9401050042 940105 BUSINESS BRIEF NORTHERN TELECOM LTD CORDLESS PHONE INTRODUCED WITH CALLER ID IN HANDSET NORTHERN TELECOM LTD TORONTO SAID IT INTRODUCED THE FIRST CORDLESS TELEPHONES WITH CALLERIDENTIFICATION CAPABILITIES IN THE HANDSET WHICH ALLOW USERS TO SEE THE NAME OR NUMBER OF THE CALLING PARTY NORTHERN TELECOM'S MAESTRO 4500 CT AND 4600 CT CORDLESS PHONES ALLOW USERS TO VIEW A STORED LOG OF THE MOST RECENT CALLS AND RESPOND TO THEM WITH A TOUCH OF A BUTTON THE TERMINALS CAN STORE THE NAMES AND TELEPHONE NUMBERS ASSOCIATED WITH AS MANY AS 20 INCOMING CALLS FOR THE 4500 CT AND 30 CALLS FOR THE 4600 CT THE TIME AND DATE IS ALSO RECORDED FOR EACH CALL THE COMPANY SAID SPRINT CORP WILL BE THE FIRST DISTRIBUTOR FOR THE PHONES THE LONGDISTANCE CARRIER WHICH PLANS TO INTRODUCE A SPRINTBRANDED VERSION OF THESE CORDLESS CALLER ID PHONES WILL BEGIN MARKETING TRIALS IN ITS EASTERN REGION LATER THIS MONTH NORTHERN TELECOM A UNIT OF CANADA'S BCE LTD SAID THE MAESTRO 4500 CT AND 4600 CT PHONES CARRY A SUGGESTED RETAIL PRICE OF 22995 AND 25595 RESPECTIVELY 9401050041 940105 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 BEAR STEARNS COS 250 MILLION OF NOTES DUE JAN 15 2004 PRICED AS 6 5/8 AT 99551 TO YIELD 6687 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 85 BASIS POINTS ABOVE THE COMPARABLE TREASURY ISSUE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO INTERNATIONAL LEASE FINANCE CORP 150 MILLION OF NOTES DUE JAN 15 1999 PRICED AS 5 3/4 AT 9995 TO YIELD 576 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 48 BASIS POINTS ABOVE THE COMPARABLE TREASURY ISSUE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC INTERNATIONAL LEASE FINANCE IS A UNIT OF AMERICAN INTERNATIONAL GROUP INC ICF KAISER INTERNATIONAL INC 125 MILLION OF UNITS SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO THE UNITS CONSIST OF 125 MILLION OF SENIOR SUBORDINATED NOTES AND WARRANTS FOR 25 OF THE COMPANY'S EQUITY ACCORDING TO MCM CORPORATEWATCH THE NOTES DUE DEC 31 2003 WERE PRICED AS 12 AT 9719 TO YIELD 125 AND ARE NONCALLABLE FOR FIVE YEARS THE NOTES ARE RATED SINGLEB3 BY MOODY'S AND SINGLEBMINUS BY S&P SUFFOLK COUNTY NY WATER AUTHORITY 102 MILLION TWOPART BOND OFFERING APPARENTLY WON BY A MERRILL LYNCH & CO GROUP THERE ARE 64 MILLION OF REVENUE BONDS AND 38 MILLION OF SUBORDINATED LIEN BONDS THE OFFERINGS WERE WON WITH NET INTEREST COSTS OF 527 AND 504 A SYNDICATE OFFICIAL SAID YIELDS FOR THE REVENUE BONDS RANGE FROM 515 IN 2012 TO 527 IN 2017 AND YIELDS FOR THE SUBORDINATED LIEN BONDS RANGE FROM 425 IN 2001 TO 5 IN 2009 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 5214 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1671 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1667 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REMIC SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1669 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REMIC SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 1668 IS BACKED BY THE AGENCY'S 20YEAR 6 1/2 MORTGAGE SECURITIES DEPFA FINANCE NV GERMAN PARENT 15 BILLION MARKS OF 6 EUROBONDS DUE JAN 26 2004 AT ISSUE PRICE 101915 VIA COMMERZBANK AG AND MORGAN STANLEY GMBH REOFFERED AT 9974 TO YIELD 6035 A SPREAD OF 45 BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT BOND GUARANTOR DEUTSCHE PFANDBRIEF & HYPOTHEKENBANK AG FEES 2 1/2 DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT 1 BILLION MARKS OF 5 3/4 EUROBONDS DUE FEB 9 2004 AT ISSUE PRICE 10173 VIA DEUTSCHE BANK AG RECOMMENDED REOFFER PRICE 9933 TO YIELD 584 A SPREAD OF 29 BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT BOND GUARANTOR DEUTSCHE BANK AG FEES 2 1/2 BAYERISCHE VEREINSBANK OVERSEAS FINANCE NV GERMAN PARENT 1 BILLION MARKS OF 5 EUROBONDS DUE FEB 17 1999 AT ISSUE PRICE 10145 VIA BAYERISCHE VEREINSBANK AG RECOMMENDED REOFFER PRICE 9955 TO YIELD 510 A SPREAD OF EIGHT BASIS POINTS ABOVE THE COMPARABLE GERMAN GOVERNMENT NOTE LAUNCHED OFF EURO MEDIUMTERM NOTE PROGRAM GUARANTOR BAYERISCHE VEREINSBANK AG FEES 2 KINGDOM OF SWEDEN SOVEREIGN 50 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 25 1999 AT ISSUE PRICE 10470 VIA NIKKO EUROPE PLC PAYABLE SEMIANNUALLY AT SIXMONTH YEN LONDON INTERBANK OFFERED RATE PLUS 60 BASIS POINTS FEES UNDISCLOSED TREASURY CORP OF VICTORIA AUSTRALIA AGENCY 30 BILLION YEN OF 175 EUROBONDS DUE JAN 25 1996 AT ISSUE AND REOFFER PRICE 99925 VIA NOMURA INTERNATIONAL PLC BONDS YIELD 179 GUARANTOR STATE GOVERNMENT OF VICTORIA FEES 1/8 FINNISH EXPORT CREDIT LTD FINLAND AGENCY 10 BILLION YEN OF 2 EUROBONDS DUE JAN 24 1997 AT ISSUE AND REOFFER PRICE 1001375 VIA NOMURA INTERNATIONAL PLC BONDS YIELD 195 FEES 3/16 POINT FINNISH EXPORT CREDIT LTD FINLAND AGENCY10 BILLION YEN OF FLOATINGRATE EURONOTES DUE JAN 24 1997 AT ISSUE AND REOFFER PRICE 1021175 VIA NOMURA INTERNATIONAL PAYABLE QUARTERLY AT THREEMONTH YEN LIBOR PLUS 40 BASIS POINTS FEES 3/16 POINT FRANCE TELECOM FRANCE 25 BILLION FRANCS OF 625 EUROBONDS DUE NOV 3 2006 AT ISSUE AND REOFFER PRICE 10120 VIA CREDIT LYONNAIS BONDS YIELD 5995 A SPREAD OF 16 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE BETWEEN 8 1/4 FRENCH TREASURY OF 2004 AND 8 1/2 TREASURY OF 2008 BONDS WILL TRADE INTERCHANGEABLY WITH 2 BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS FEES 035 POINT CREDIT NATIONAL FRANCE AGENCY 2 BILLION FRENCH FRANCS OF 6 EUROBONDS DUE NOV 22 2004 AT ISSUE AND REOFFER PRICE 9997 VIA SOCIETE GENERALE BONDS YIELD SPREAD OF 30 BASIS POINTS ABOVE 8 1/4 FRENCH TREASURY OF 2004 BONDS WILL TRADE INTERCHANGEABLY WITH 3 BILLION FRANCS OF OUTSTANDING IDENTICAL BONDS FEES 3/8 EUROFIMA SUPRANATIONAL 500 BILLION ITALIAN LIRE OF 77 EUROBONDS DUE FEB 2 1994 AT ISSUE PRICE 101625 VIA BANCA COMMERCIALE ITALIANA SPA REOFFERED AT PAR TO YIELD 770 FEES 1 7/8 POINT KINGDOM OF SWEDEN SOVEREIGN 250 BILLION ITALIAN LIRE OF 7 3/8 EUROBONDS DUE FEB 4 1999 AT ISSUE PRICE 10150 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 747 AFTER DEDUCTING FEES OF 1 7/8 POINT DRESDNER FINANCE BV GERMAN PARENT 200 BILLION ITALIAN LIRE OF 7 7/8 EUROBONDS DUE FEB 11 2004 AT ISSUE PRICE 10175 VIA BANCA NAZIONALE DEL LAVORO BONDS YIELD 791 AFTER DEDUCTING FEES OF TWO POINTS CITY OF AMSTERDAM NETHERLANDS 500 MILLION GUILDERS OF 55 EUROBONDS DUE JAN 28 2004 AT ISSUE PRICE 9965 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 9890 TO YIELD 5647 A SPREAD OF 10 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE POINT DE NATIONALE INVESTERINGSBANK NV NETHERLANDS AGENCY 200 MILLION GUILDERS OF 6 EUROBONDS DUE FEB 2 2009 AT ISSUE PRICE 9950 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 9885 TO YIELD 612 A SPREAD OF 20 BASIS POINTS ABOVE DUTCH STATE LOAN OF 2007 FEES ONE POINT FEDERAL AIRPORTS CORP AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE FEB 16 2004 AT ISSUE PRICE 100175 VIA HAMBROS BANK LTD BONDS YIELD 726 AT 98175 COMANAGERS' BREAKEVEN PRICE FEES 2 1/8 POINTS LESS 1/8 POINT FOR LEAD MANAGER NATIONAL AUSTRALIA BANK AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 6 EUROBONDS DUE FEB 28 1997 AT ISSUE PRICE 10101 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS YIELD 618 AFTER DEDUCTING FEES OF 1 1/2 POINTS DKB INTERNATIONAL PLC JAPAN PARENT 60 MILLION OF REVERSECOUPON FLOATINGRATE EURONOTES DUE JAN 14 2004 AT ISSUE AND REOFFER PRICE 10025 FOR OWN ACCOUNT PAYABLE SEMIANNUALLY AT SIXMONTH DOLLAR LIBOR PLUS 45 BASIS POINTS UNTIL JAN 14 1997 WHEN BONDS ARE CALLABLE AT PAR THEREAFTER COUPON 8 ANNUAL GUARANTOR DAIICHI KANGYO BANK LTD FEES 030 POINT BANCO BRADESCO SA BRAZIL 50 MILLION OF 8 EUROBONDS DUE JAN 14 1997 AT ISSUE AND REOFFER PRICE 100386 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 7853 A SPREAD OF 325 BASIS POINTS ABOVE 4 3/8 US TREASURY OF 1996 FEES ONE POINT PAYABLE SEMIANNUALLY 9401050040 940105 WHO'S NEWS STAFF GETS CALVIN KLEIN POST NEW YORK MARTIN STAFF WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF CALVIN KLEIN CO A UNIT OF GFT USA CORP WHICH HOLDS THE LICENSE TO MANUFACTURE SUCH CALVIN KLEIN ITEMS AS TAILORED CLOTHING SHIRTS AND TIES GFT IS OWNED BY ITALIAN APPAREL MAKER GRUPPO GFT MR STAFF 43 YEARS OLD WILL SUCCEED PATRICK GUADAGNO WHO HAS BEEN REASSIGNED WITHIN GFT PREVIOUSLY MR STAFF WAS SENIOR VICE PRESIDENT OF LICENSING AND RETAIL DEVELOPMENT FOR CALVIN KLEIN INC A SEPARATE CLOSELY HELD COMPANY WHOSE PRINCIPAL OWNERS INCLUDE THE DESIGNER MR KLEIN RICHARD A MARTIN 39 WAS NAMED TO THE NEW POST OF PRESIDENT FINANCE AND ADMINISTRATION OF CALVIN KLEIN INC MR MARTIN WAS FORMERLY CHAIRMAN OF PRICE WATERHOUSE'S NATIONAL RETAIL AND APPAREL INDUSTRY SERVICES PRACTICE 9401050039 940105 MARKETING BRIEF NOTED PUBLISHING NEW YORK TIMES CO SOLD TWO WEEKLY NEWSPAPERS IN GEORGIA THE WINDER NEWS AND THE FORSYTH COUNTY NEWS TO SWARTZMORRIS MEDIA INC TERMS WEREN'T DISCLOSED SWARTZMORRIS IS A MEDIA CONCERN LED BY JD SWARTZ 58 A FORMER PRESIDENT OF WORRELL NEWSPAPERS WHO IS BASED IN JOHNSON CITY TENN AND CHARLES H MORRIS 55 OF AUGUSTA GA AND OWNER OF MORRIS NEWSPAPER CORP 9401050038 940105 BUSINESS BRIEF BLACK & DECKER CORP CORBIN RUSSWIN UNIT IS SOLD TO MAKER OF YALE LOCKS BLACK & DECKER CORP TOWSON MD SAID IT SOLD ITS CORBIN RUSSWIN ARCHITECTURAL HARDWARE UNIT TO WILLIAMS HOLDINGS PLC MANUFACTURER OF YALE LOCKS FOR 80 MILLION WILLIAMS HOLDINGS SAID CORBIN RUSSWIN WILL COMPLEMENT ITS EXISTING YALE LOCK BUSINESS THE BRITISH MANUFACTURER SAID CORBIN RUSSWIN HAS A 10 SHARE OF THE NORTH AMERICAN LOCK MARKET ACCORDING TO WILLIAMS ITS YALE SUBSIDIARY WILL HAVE 300 MILLION IN SALES THIS YEAR 9401050037 940105 BUSINESS BRIEF MATSUSHITA ELECTRIC INDUSTRIAL CO MCA SUBSIDIARY SETS UP INTERACTIVESOFTWARE UNIT MCA INC UNIVERSAL CITY CALIF SAID IT FORMED UNIVERSAL INTERACTIVE STUDIOS A UNIT THAT WILL PUBLISH INTERACTIVE SOFTWARE FOR COMPUTERS AND GAME MACHINES THE DIVISION ALREADY HAS BEEN DEVELOPING SOFTWARE FOR 3DO CO'S NEW INTERACTIVE GAME PLAYER MCA HAS AN EQUITY STAKE IN 3DO AND MCA'S PARENT MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN IS THE MANUFACTURER OF THE GAME PLAYER WHICH 3DO DEVELOPED AND FOR WHICH IT LICENSES SOFTWARE THE UNIT'S FIRST SOFTWARE TITLE WILL BE JURASSIC PARK INTERACTIVE A 3DO GAME DUE OUT THIS SPRING BASED ON THE BLOCKBUSTER MOVIE RELEASED BY MCA'S UNIVERSAL PICTURES MCA EXECUTIVE VICE PRESIDENT SKIP PAUL WHO IS A DIRECTOR OF 3DO WILL HEAD THE NEW VENTURE THE NEW UNIT WILL FUNCTION LIKE A MOVIE STUDIO EXECUTIVES SAY BOTH DEVELOPING SOFTWARE INHOUSE AND FUNDING AND DISTRIBUTING SOFTWARE DEVELOPED BY OUTSIDERS 9401050036 940105 WHO'S NEWS NATIONAL ASSOCIATION OF SECURITIES DEALERS INC NATIONAL ASSOCIATION OF SECURITIES DEALERS INC WASHINGTON DENNIS C HENSLEY MANAGING DIRECTOR AND GLOBAL HEAD OF REGULATORY AND COMPLIANCE AT JP MORGAN SECURITIES INC OF NEW YORK WAS ELECTED TO THE BOARD OF GOVERNORS OF THIS SELFREGULATORY ORGANIZATION FOR THE NASDAQ STOCK MARKET AND THE OVERTHECOUNTER MARKET MR HENSLEY 48 YEARS OLD INCREASES BOARD MEMBERSHIP TO 27 9401050035 940105 BUSINESS BRIEF INTERCITY PRODUCTS CORP PLANT CLOSING PAYROLL CUTS ARE PLANNED TO LOWER COSTS INTERCITY PRODUCTS CORP SAID IT PLANS TO CLOSE ONE OF ITS THREE CANADIAN MANUFACTURING FACILITIES AND ELIMINATE ABOUT 450 JOBS AS PART OF A PLAN TO CUT OPERATING COSTS AND RETURN THE COMPANY TO PROFITABILITY THE TORONTOBASED MAKER OF HEATING AND COOLING SYSTEMS SAID IT WILL SHUT ITS PLANT IN BRANTFORD ONTARIO A MOVE WHICH WILL COST ABOUT 380 EMPLOYEES THEIR JOBS A FURTHER 70 POSITIONS WILL BE CUT IN LAVERGNE TENN THE COMPANY SAID INTERCITY SAID THAT ONCE THE STAFF CUTS ARE COMPLETED AT THE END OF JANUARY THE COMPANY WILL HAVE ABOUT 3100 EMPLOYEES CURRENT STAFFING LEVELS WEREN'T AVAILABLE THE FIRM PLANS TO TAKE A PRETAX CHARGE OF ABOUT 20 MILLION CANADIAN DOLLARS US152 MILLION AGAINST FOURTHQUARTER EARNINGS REFLECTING THE COST OF THE STAFF CUTS AND PLANT CLOSURE IT SAID IT EXPECTS TO RECOUP THIS LOSS OVER THE NEXT TWO YEARS INTERCITY SAID THE STEPS ARE IN RESPONSE TO PRICE COMPETITION IN THE NORTH AMERICAN MARKETS FOR ITS RESIDENTIAL AND LIGHT COMMERCIAL AIR CONDITIONING PRODUCTS 9401050034 940105 BUSINESS BRIEF OWENSCORNING FIBERGLAS CORP COMPANY ALTERS STRUCTURE TO HELP DECISIONMAKING OWENSCORNING FIBERGLAS CORP IN A MOVE TO SIMPLIFY ITS DECISIONMAKING PROCESS ELIMINATED A LAYER OF MANAGEMENT AND CREATED 10 NEW STRATEGIC BUSINESS SEGMENTS THE TOLEDO OHIO GLASS FIBER CONCERN DISSOLVED ITS CONSTRUCTION PRODUCTS AND INDUSTRIAL MATERIALS BUSINESS ORGANIZATION LARRY T SOLARI FORMERLY PRESIDENT OF THE CONSTRUCTION PRODUCTS BUSINESS WILL SERVE AS A CONSULTANT TO THE CHIEF EXECUTIVE OFFICER CHARLES H DANA FORMERLY PRESIDENT OF THE INDUSTRIAL MATERIALS BUSINESS WAS NAMED EXECUTIVE VICE PRESIDENT IN CHARGE OF BUSINESS DEVELOPMENT STRATEGIC PLANNING AND GLOBAL SOURCING THE VICE PRESIDENTS OVERSEEING THE 10 NEW BUSINESS SEGMENTS WILL NOW REPORT DIRECTLY TO GLEN H HINER CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE REORGANIZATION WON'T RESULT IN A CHARGE TO EARNINGS BUT THERE MAY BE SOME ADDITIONAL PERSONNEL CHANGES IN THE NEW BUSINESS SEGMENTS 9401050033 940105 ELECTRONICS AS ELECTRONICS LAG COMPUTERS STEP INTO BREACH BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE ANNUAL CONSUMER ELECTRONICS SHOW IN LAS VEGAS TRADITIONALLY A FORUM FOR STEREO EQUIPMENT VIDEO GAMES AND OTHER GADGETRY WILL FEATURE SOME PROMINENT NEWCOMERS WHEN IT OPENS THIS WEEK COMPUTING COMPANIES INCLUDING MICROSOFT CORP AND INTEL CORP THEIR INCLUSION ILLUSTRATES JUST HOW BLURRED THE LINE HAS BECOME BETWEEN COMPUTERS AND CONSUMER ELECTRONICS WHILE SALES OF MORE TRADITIONAL CONSUMER EQUIPMENT LANGUISH COMPUTER CONCERNS HOPE TO SPUR PURCHASES OF MULTIMEDIA PERSONAL COMPUTERS HANDHELD DIGITAL ASSISTANTS AND SOPHISTICATED COMPUTER GAMES COMPUTERS AND THEIR RELATED GAMES AND SERVICES WILL BE REPRESENTED IN NEARLY HALF THE SHOW'S TOTAL EXHIBIT SPACE SAYS THE ELECTRONIC INDUSTRIES ASSOCIATION WHICH SPONSORS THE SHOW WITH ALL THE DISCUSSION OF DIGITAL CONVERGENCE CES IS WHERE IT'S GOING TO HAPPEN SAYS MICHAEL LOSH GROUP PRODUCT MANAGER OF MICROSOFT'S CONSUMER DIVISION OF COURSE CONVENTIONAL CONSUMER FARE FROM COMPANIES LIKE SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO WILL STILL DOMINATE THE LAS VEGAS SHOW IS TRADITIONALLY THE PLACE WHERE SUCH COMPANIES GET THE ORDERS THAT LEAD TO PROFITS OR LOSSES THE REST OF THE YEAR SONY'S SONY ELECTRONICS INC UNIT AND EMERSON RADIO CORP WILL DISPLAY NEW PORTABLE COMPACTDISK PLAYERS FOR MUSIC BUFFS ON THE GO MOTOROLA INC WILL INTRODUCE ITS MEMO EXPRESS PAGER A PORTABLE ANSWERING MACHINE THAT SCROLLS MESSAGES ACROSS A DISPLAY SCREEN THOMSON CONSUMER ELECTRONICS A UNIT OF FRENCHBASED THOMSON SA WILL SHOWCASE ITS RECENTLY INTRODUCED RCA DIGITAL SATELLITE SYSTEM WHICH LETS TELEVISION WATCHERS RECEIVE UP TO 150 CHANNELS VIA AN 18INCH DISH AND THERE WILL BE THE INEVITABLE ODD GIZMOS LONESTAR TECHNOLOGIES LTD PLANS TO SHOW AN INTERACTIVE GUITAR THAT ENABLES EVEN THE MUSICALLY INEPT TO PLAY A TUNE ON KEY BUT LITTLE IS NEW IN OLDLINE CONSUMER GEAR SAY ANALYSTS AND BUYERS WHICH IS WHY SALES IN THAT SEGMENT ARE EXPECTED TO GROW ONLY 2 TO 4 THIS YEAR COMPUTERRELATED SALES BY CONTRAST ARE EXPECTED TO GROW BETWEEN 6 AND 7 SAYS THE ELECTRONIC INDUSTRIES ASSOCIATION I THINK COMPUTERS AND THE WHOLE AREA OF TECHNOLOGY IS ONE OF THE MOST IMPORTANT SEGMENTS IN NOT ONLY ELECTRONICS BUT ALL RETAILING SAYS ROBERT E PRICE CHAIRMAN OF PRICE/COSTCO INC THE BIG CHAIN OF DISCOUNT WAREHOUSES INTEL WHICH MAKES CHIPS THAT SERVE AS THE BRAINS OF PCS SAYS IT WILL BE AT THE SHOW TO DEMONSTRATE HOW PROGRAMS RUN ON THE COMPUTERS IT POWERS AS WELL AS TO DISPLAY INTEL RETAIL PRODUCTS SUCH AS FAX MODEMS AND NETWORKS THAT TIE COMPUTERS TOGETHER MICROSOFT SAYS IT WILL SHOWCASE ITS NEW CONSUMER PROGRAMS INCLUDING GAMES AND A MULTIMEDIA LIBRARY OTHER RECENTLY INTRODUCED PRODUCTS TO BE DISPLAYED AT THE SHOW INCLUDE APPLE COMPUTER INC'S NEWTON MESSAGEPAD AND AMERICAN TELEPHONE & TELEGRAPH CO'S EO WHICH ARE PORTABLE COMPUTER COMMUNICATIONS DEVICES APPLE WILL BE DEMONSTRATING A NUMBER OF NEW APPLICATIONS FOR NEWTON INCLUDING AS A TELEPROMPTER FOR READING SPEECHES THE MOST SOUGHTAFTER PRODUCTS AMONG BUYERS AT THE SHOW WILL PROBABLY BE MULTIMEDIA COMPUTERS WHICH CONSUMERS HAVE ALREADY BEGUN BUYING FROM UNTRADITIONAL OUTLETS LIKE KMART CORP AND WALMART STORES INC COMPAQ COMPUTER CORP IS INCREASING ITS BOOTH SIZE 50 FROM LAST YEAR WHEN IT FIRST ATTENDED THE SHOW IT WILL SHOW ITS PRESARIO HOME COMPUTER LINE INCLUDING ONE THAT BECAME THE COMPANY'S FASTESTSELLING PC EVER AFTER ITS INTRODUCTION LAST AUGUST INTERNATIONAL BUSINESS MACHINES CORP WILL PREVIEW NEW VERSIONS OF ITS MULTIMEDIA COMPUTERS MAKERS OF CDROM SOFTWARE WHICH IS PC PROGRAMS WRITTEN ONTO COMPACT DISKS WILL ALSO BE OUT IN FORCE SOFTWARE TOOLWORKS INC WILL PREVIEW DRAGON TALES AN ADVENTURE GAME AND MEGARACE A FUTURISTIC SPECTATORSPORT GAME SANCTUARY WOODS MULTIMEDIA CORP WILL TALK ABOUT ITS PLANS ANNOUNCED THIS WEEK TO TEAM WITH THE COMEDY CENTRAL CABLE NETWORK TO CREATE INTERACTIVE COMEDY GAMES BUT DESPITE THE COMPUTER INDUSTRY'S INCREASED PRESENCE SOME OF ITS HIGHLY TOUTED OFFERINGS AREN'T SURE BETS WHILE SOCALLED PERSONAL DIGITAL ASSISTANTS LIKE THE MESSAGEPAD WILL MAKE A BIG SPLASH AT THE SHOW TODAY'S PDAS ARE EXPENSIVE AND RELATIVELY CRUDE AND CDROM GAME SALES STILL PALE BESIDE SALES OF GAMES FOR CARTRIDGEFED PLAYERS LIKE NINTENDO'S SUPER NINTENDO ENTERTAINMENT SYSTEM AND SEGA'S GENESIS COMPUTERPOWERED VIDEO GAMES ACCOUNTED FOR SOME 8 BILLION IN US SALES LAST YEAR THAT'S MORE THAN THE 5 BILLION FILM INDUSTRY HAD WHICH IS WHY HOLLYWOOD HAS BEEN TEAMING UP WITH SILICON VALLEY TO PRODUCE NEW GAMES AMONG THE HOLLYWOODBACKED GAMES TO BE UNVEILED THIS WEEK ARE SOME BASED ON THE HIT TV SERIES STAR TREK THE NEXT GENERATION AND A NEW SERIES CALLED VIPER BECAUSE OF THE GROWING PUBLIC DISTASTE FOR VIOLENCE IN VIDEO GAMES SOME OF THIS YEAR'S NEW OFFERINGS HAVE SPORTS AND FANTASY THEMES THIS SPRING'S HOTTEST NEW PRODUCT IS EXPECTED TO BE ACCLAIM ENTERTAINMENT INC'S NBA JAM A FASTPACED BASKETBALL GAME THAT WILL HIT THE HOME MARKET IN THE SPRING OTHER GAME MAKERS ARE TRYING TO BROADEN THE MARKET BEYOND ITS CORE OF YOUNG MEN AND BOYS THROUGH CHARACTERS LIKE ALFRED CHICKEN A CREATION OF VIACOM NEW MEDIA WHICH DESCRIBES IT AS APPEALING WITHOUT BEING VIOLENT SOFTWARE TOOLWORKS INC HAS CREATED A VIDEOGAME CHARACTER NAMED ALFRED CHICKEN AN ARTICLE WEDNESDAY ABOUT THE ANNUAL CONSUMER ELECTRONICS SHOW MISTAKENLY IDENTIFIED VIACOM NEW MEDIA AS THE CHARACTER'S CREATOR 9401050032 940105 WHAT'S NEWS WORLDWIDE NATO EXPANSION COULD HARM EUROPE THE JOINT CHIEFS CHAIRMAN SAID GEN SHALIKASHVILI CHAIRMAN OF THE JOINT CHIEFS OF STAFF WARNED THAT AN IMMEDIATE EXPANSION OF THE NATO ALLIANCE COULD HAVE A DESTABILIZING IMPACT UPON EUROPE DEFENDING CLINTON'S PLAN TO INVITE NONALLIANCE NATIONS TO PARTICIPATE IN NATO WITHOUT GRANTING THEM MILITARY PROTECTIONS THE GENERAL SAID MEMBERSHIP TO SOME AND EXCLUSION OF OTHERS WOULD BE COUNTER TO WHAT IS IN EUROPE'S BEST INTERESTS SOME EASTERN EUROPEAN NATIONS HAVE ASKED FOR ADMISSION TO NATO BUT RUSSIA VIEWS ANY SUCH EXPANSION AS A THREAT THAT WOULD LEAVE MOSCOW ISOLATED MEXICAN MILITARY AIRCRAFT ATTACKED REBEL POSITIONS WITH ROCKETS AND MACHINEGUN FIRE ON THE OUTSKIRTS OF A CITY IN THE SOUTHERN STATE OF CHIAPAS THE AERIAL BOMBARDMENT IN SAN CRISTOBAL DE LAS CASAS CAME AFTER SOME OF THE ARMED PEASANTS APPEARED TO HAVE WITHDRAWN FROM STRONGHOLDS IN SOME SMALLER TOWNS SEIZED SINCE SATURDAY AN AIR TRAFFICCONTROL PROPOSAL IS SET TO BE DISCLOSED TOMORROW BY THE CLINTON ADMINISTRATION WHICH WANTS TO PUT THE SYSTEM IN THE HANDS OF A NEW GOVERNMENT CORPORATION INSTEAD OF THE FAA THE PLAN IS LIKELY TO BE APPLAUDED BY THE AIRLINE INDUSTRY WHICH CONTENDS THE FAA HAS BUNGLED MODERNIZATION MOVES NEW HIVPREVENTION ADS WERE UNVEILED BY THE GOVERNMENT AS PART OF A BOLDER CAMPAIGN TO PERSUADE SEXUALLY ACTIVE YOUNG PEOPLE TO PROTECT THEMSELVES AGAINST AIDS EITHER BY USING LATEX CONDOMS OR BY ABSTAINING FROM SEX THE FRANK ADS ADVOCATING THE USE OF CONDOMS ARE PROMPTING AN OUTCRY FROM CONSERVATIVES TREASURY SECRETARY BENTSEN PROPOSED A SHARP INCREASE IN THE LICENSING FEE FOR GUN DEALERS AND STRICTER CONTROLS ON PEOPLE WHO PURCHASE AND SELL WEAPONS THE FEE BOOST TO 600 ANNUALLY WOULD ELIMINATE 200000 OF THE 284000 FEDERALLY LICENSED GUN DEALERS NATIONWIDE BENTSEN PREDICTED CANADA WILL REVIEW ITS FUTURE PEACEKEEPING ROLE IN BOSNIA FOLLOWING THE HARASSMENT OF CANADIAN SOLDIERS WHO WERE SUBJECTED TO A MOCK EXECUTION THERE LAST MONTH PRIME MINISTER CHRETIEN SAID IN OTTAWA SEPARATELY INTERNATIONAL MEDIATOR OWEN SAID BOSNIA'S WARRING PARTIES APPEAR QUITE CONTENT TO CONTINUE FIGHTING THE US PAID NEARLY 50 MILLION TO LAW FIRMS OVER THREE YEARS TO DEFEND NUCLEAR DEFENSE CONTRACTORS AGAINST SUITS BROUGHT BY PEOPLE CLAIMING RADIATION HARM ACCORDING TO A GOVERNMENT MEMO MADE PUBLIC BY A BOSTONBASED ACTIVIST GROUP THE FEES HAVE ATTRACTED ATTENTION AMID A GOVERNMENT PROBE OF RADIATION TESTS ON HUMANS MEDICAL RESEARCHERS WON APPROVAL FOR THE FIRST FEDERAL GRANT FOR FETAL TISSUE EXPERIMENTS SINCE CLINTON LIFTED A FIVEYEAROLD BAN ON THE RESEARCH USING CELLS FROM ABORTED FETUSES A TOTAL OF 45 MILLION WILL BE GIVEN TO THREE INSTITUTIONS TO STUDY THE EFFECTS OF IMPLANTING FETAL TISSUE INTO THE BRAINS OF PATIENTS WITH PARKINSON'S DISEASE A MASSIVE SEARCH FOR MIAS WILL BEGIN TOMORROW IN VIETNAM WITH THE LAUNCH OF A 23DAY OPERATION INVOLVING US AND VIETNAMESE TEAMS THE EFFORT COMES AS THE US IS ASSESSING HOW TO MOVE AHEAD IN LIFTING A 19YEAROLD EMBARGO AGAINST VIETNAM ARGENTINA HAS TOLD BRITAIN IT WILL PAY FOR SPECIALISTS FROM A THIRD COUNTRY TO FIND AND DESTROY 30000 MINES BURIED IN THE FALKLAND ISLANDS SINCE THE 1982 WAR WITH BRITAIN A DIPLOMATIC SOURCE TOLD REUTERS NEWS AGENCY IF BRITAIN ACCEPTS THE OFFER ARGENTINA WILL HAVE TO PRESS ITS MILITARY TO DIVULGE SECRET DATA CONCERNING THE LOCATION OF THE MINES RUSSIAN GOVERNMENT MINISTERS BEGAN MOVING INTO THE FORMER PARLIAMENT BUILDING JUST THREE MONTHS AFTER THE MOSCOW BUILDING WAS SHELLED AND BURNED DURING A BATTLE BETWEEN YELTSIN'S TROOPS AND HARDLINE LEGISLATORS A NEWLY ELECTED PARLIAMENT WHICH WILL CONVENE TUESDAY HAS BEEN ALLOCATED TWO OTHER BUILDINGS DOCTORS IN THE AFGHAN CAPITAL APPEALED FOR MEDICINE AND BLOOD TO TREAT 1700 PEOPLE WOUNDED IN FOUR DAYS OF FIGHTING AMONG ISLAMIC FACTIONS AT LEAST 80 PEOPLE HAVE BEEN KILLED SINCE THE CLASHES BEGAN ISRAEL AND THE PLO COULD MEET AGAIN WITHIN DAYS TO TRY TO BREAK A DEADLOCK THAT HAS POSTPONED THE IMPLEMENTATION OF PALESTINIAN SELFRULE IN GAZA AND JERICHO ISRAELI PRIME MINISTER RABIN SAID 9401050030 940105 WHAT'S NEWS BUSINESS AND FINANCE MCI UNVEILED A SIXYEAR 20 BILLION SPENDING PLAN AIMED AT UPGRADING ITS NETWORKS AND BREAKING THE BABY BELLS' MONOPOLY OVER LOCAL PHONE SERVICE CHAIRMAN ROBERTS SAID MCI IS DISCUSSING JOINT VENTURES AND EQUITY INVESTMENTS WITH CABLE COMPANIES AND WIRELESS CARRIERS BUT THE PLAN COULD BE RISKY AND EXPENSIVE ACCELERATING COUNTERMOVES BY THE BABY BELLS WHICH ARE BENT ON BATTLING MCI AND OTHERS IN LONGDISTANCE SERVICE BORDEN'S BOARD APPROVED A RESTRUCTURING PLAN THAT INVOLVES SELLING THE COMPANY'S SNACKFOOD UNIT AND WILL RESULT IN A 650 MILLION CHARGE FORMER PRUDENTIAL SECURITIES BROKERS WHO HAVE ACCUSED THE FIRM OF MISLEADING INVESTORS ARE BEING QUERIED BY PROSECUTORS FOR EVIDENCE OF WRONGDOING BY SENIOR PRUDENTIAL MANAGERS ROHR AGREED TO PLEAD GUILTY TO CHARGES OF FRAUD AND FALSIFYING TESTS OF MILITARY AIRCRAFT PARTS IN A 7 MILLION SETTLEMENT WITH THE US LAWENFORCEMENT AND INDUSTRY OFFICIALS SAY MCA IS PLANNING A UNIVERSAL STUDIOS JAPAN THEME PARK IN OSAKA COSTING BETWEEN 1 BILLION AND 2 BILLION TO OPEN IN 1999 CITY OFFICIALS SAID SALES OF PICKUPS VANS AND SPORT UTILITY VEHICLES SURGED IN 1993 AND EARLY RESULTS SHOW FOUR OF THE TOP SIX VEHICLES SOLD IN THE US WERE TRUCKS MERCK NAMED MARTIN WYGOD TO HEAD ITS CORE BUSINESS FUELING SPECULATION THAT HE IS A TOP CANDIDATE TO SUCCEED CHAIRMAN VAGELOS IN NOVEMBER BRISTOLMYERS SQUIBB PLANS TO TRIM 5000 JOBS OR ABOUT 10 OF ITS WORK FORCE OVER TWO YEARS THIS IS ITS THIRD ROUND OF CUTS IN JUST OVER ONE YEAR AND BRINGS THE TOTAL TO 7200 JOBS TRANS WORLD AIRLINES SAID WILLIAM HOWARD RESIGNED AS CHAIRMAN AND CEO AFTER JUST SIX MONTHS DONALD CRAIB ONE OF 15 NEW DIRECTORS APPOINTED THIS FALL WILL SUCCEED HIM BOND PRICES ROARED BACK AFTER STEEP DECLINES MONDAY THE TREASURY'S 30YEAR ISSUE ROSE NEARLY A POINT ITS YIELD WAS 634 THE DOW INDUSTRIALS JUMPED 2730 TO 378390 KMART IS EXPECTED TO ANNOUNCE TODAY THAT IT IS CREATING SEPARATE CLASSES OF STOCK TIED TO THE EARNINGS AT FOUR OF ITS SPECIALTYSTORE SUBSIDIARIES GM WON'T PAY BONUSES TO NORTH AMERICAN EXECUTIVES DESPITE A PROFITABLE 1993 AND IS CONSIDERING LINKING FUTURE BONUSES TO PROFITSHARING PAYMENTS MADE TO HOURLY WORKERS FORD EXPANDED A RECALL TO AN ADDITIONAL 11 MILLION CARS BRINGING THE TOTAL TO 45 OF THE TAURUS SABLE AND CONTINENTAL SEDANS SOLD SINCE 1986 CENTERIOR ENERGY TOOK A 102 BILLION CHARGE AND CUT ITS PAYOUT IN HALF THE CHARGE WILL RESULT IN A 1993 LOSS MAJOR US AIRLINES SERVED UP THE FIRST FARE SALE OF 1994 SLASHING PRICES NEARLY IN HALF TO STIMULATE SEASONALLY SLOW WINTER DEMAND DESPITE THE STEEPNESS OF THE CUTS PRICES STILL ARE EXPECTED TO RISE 4 TO 6 IN 1994 THE BROOKINGS INSTITUTION'S PERRY IS A CONTENDER IN THE THREEWAY RACE FOR A FEDERAL RESERVE BOARD SEAT SUN HEALTHCARE GROUP AGREED TO ACQUIRE MEDIPLEX GROUP FOR ABOUT 312 MILLION IN CASH AND STOCK BONDS LEHMAN BROTHERS TREASURY INDEX 551062 UP 4430 COMMODITIES OIL 1467 A BARREL UP 11 CENTS DOW JONES FUTURES INDEX 14170 OFF 057 SPOT INDEX 12800 OFF 008 DOLLAR 11270 YEN UP 009 17355 MARKS OFF 00080 9401050029 940105 TEXAS JOURNAL WINNERS & LOSERS PEOPLE WHO NEED PEOPLE THE LATEST CENSUS BUREAU FIGURES INDICATE TEXAS WILL SURPASS NEW YORK AS THE SECONDMOSTPOPULOUS STATE BY MARCH TRAIN BUFFS DEVELOPER GEORGE MITCHELL IS FUNDING A STUDY TO SEE IF COMMUTERTRAIN SERVICE IS FEASIBLE BETWEEN HOUSTON GALVESTON AND THE WOODLANDS THE F16 A US AIR FORCE INVESTIGATION FOUND THAT A FATAL CRASH OF A JET MADE AT LOCKHEED'S FORT WORTH PLANT WAS CAUSED BY PILOT ERROR NOT MECHANICAL PROBLEMS ROADSIDE VENDORS STATE OFFICIALS PLAN TO ENFORCE A 1991 LAW THAT BANS PRIVATE SIGNS ON HIGHWAY RIGHTS OF WAY BY TAKING THEM DOWN AND THEN DUNNING ADVERTISERS FOR THE LABOR COST HOTSAUCE LOVERS DAVID E PACE CREATOR OF PACE PICANTE SAUCE DIED IN SAN ANTONIO AT THE AGE OF 79 BEN BARNES FEDERAL PROSECUTORS FILED A CIVIL LAWSUIT ACCUSING THE FORMER LIEUTENANT GOVERNOR OF IMPROPERLY OBTAINING 25 MILLION IN LOANS FROM NOWDEFUNCT DELTA SAVINGS ASSOCIATION 9401050028 940105 TEXAS JOURNAL TRACKING TEXAS THE TEXAS ECONOMIC INDEX A WEEKLY LEADING INDICATOR FELL TO 11111 IN THE LATEST WEEK FROM A REVISED 11115 THE PRIOR WEEK TEXAS REFINERY OUTPUT FELL DURING THE WEEK ALTHOUGH INITIAL UNEMPLOYMENT CLAIMS ALSO WERE LOWER A POSITIVE SIGN ALL OTHER INDICATORS REMAINED UNCHANGED THE ANNUAL GROWTH RATE OF THE TEXAS INDEX FELL TO 292 FROM 302 A WEEK EARLIER 9401050027 940105 TEXAS JOURNAL LETTERS TO THE EDITOR UNDERMALLED NO QUESTION ABOUT IT I READ WITH INTEREST YOUR DEC 22 ARTICLES ON TEXAS MALLS THE SHOPPING MALL IS DEAD NOT IN TEXAS AND RAYMOND NASHER THE DEAN OF TEXAS MALLS DISCUSSES THEIR PAST PRESENT AND FUTURE I AGREE THAT CERTAIN AREAS OF THE STATE ARE UNDERMALLED THE EAST SIDE OF DALLAS FOR INSTANCE HAS ONLY TOWN EAST MALL NORTHPARK THE NEXT CLOSEST IS 12 MILES TO THE WEST EVIDENCE OF ITS POPULARITY IS A CONSTANT ONEHALFMILELONG LINE TO EXIT FROM THE NEARBY FREEWAY DEMAND FOR PARKING MAY NECESSITATE CHANGES ON I635 MR NASHER'S COMMENTS ABOUT A MALL'S RESPONSE TO COMMUNITY NEEDS IS RIGHT ON THE MARK PEOPLE COME FOR A VARIETY OF PURPOSES FROM A DAILY WALK TO THEIR ABILITY TO WATCH PEOPLE AT A SAFE DISTANCE PROVIDING SERVICES OTHER THAN SHOPPING SUCH AS BANKING READING ROOMS MEDICAL AND FOOD SERVICES WILL CREATE MORE OPPORTUNITIES FOR RETAILERS TO CAPTURE SALES AS WELL AS ENHANCE THE VALUE OF WELLDESIGNED AND WELLMANAGED MALLS THE DYNAMICS OF THIS TYPE OF PROPERTY MAKE THE SINGLEPURPOSE DISCOUNTERS PALE BY COMPARISON IT IS FOR THIS REASON THAT INSTITUTIONAL INVESTORS STILL COVET MALL INVESTMENTS IN TEXAS AND OTHER SIMILAR MARKETS 9401050026 940105 TEXAS JOURNAL LETTERS TO THE EDITOR FREEDOM'S THE LOSER IN YOUR DEC 29 FEATURE KEEPING SCORE WINNERS & LOSERS OF 1993 YOU CHAMPION THE CRUSADE OF ATTORNEY GENERAL DAN MORALES TO BAN SMOKING IN NINE MAJOR FASTFOOD CHAINS AS A WINNER FOR TEXAS AND THEIR LUNGS IF HEALTH IS THE BASIS FOR YOUR SUPPORT OF THIS EFFORT BY THE STATE TO INFRINGE UPON THE LIBERTY OF PRIVATE BUSINESSES AND THEIR CUSTOMERS WHY NOT SIMPLY SUPPORT A TOTAL BAN OF FASTFOOD RESTAURANTS LONG NOTED FOR THEIR HIGHFAT UNHEALTHY FOODS ALL KIDDING ASIDE ONE WONDERS WHAT SORT OF TEXAN APPLAUDS THE INTRUSION OF THE STATE INTO PRIVATE MATTERS MATTERS THAT A FREE MARKET WITH DISCRIMINATING CUSTOMERS CAN SOLVE CERTAINLY NOT THOSE WHO RISKED THE TOTAL ABSENCE OF HEALTH IN FIGHTING FOR LIBERTY IN THE TEXAS REVOLUTION 9401050025 940105 TEXAS JOURNAL LETTERS TO THE EDITOR NASA A WINNER WHY LABEL NASA A LOSER WINNERS & LOSERS DEC 8 FOR AN FBI STING THAT REPORTEDLY UNCOVERED EVIDENCE OF KICKBACKS AND BRIBES AT THE JOHNSON SPACE CENTER IF THE FBI STING CAN HELP ELIMINATE THOSE TAKING KICKBACKS AND BRIBES I THINK NASA AND THE US TAXPAYERS CAME OUT WINNERS 9401050024 940105 TEXAS JOURNAL LETTERS TO THE EDITOR STOP THE BULLET IN RESPONSE TO THE NEWS ON TEXAS TGV CORP AND HIGHSPEED RAIL GILBERT CARMICHAEL SENIOR VICE PRESIDENT OF MORRISON KNUDSEN CORP ASKS THE QUESTION SO WHAT IS THE MISSING PIECE OF THE PUZZLE LETTERS TO THE EDITOR DEC 29 THE CORRECT RESPONSE SHOULD BE RIDERSHIP TEXAS TGV HAS NEVER SHOWN THAT IT HAS THE RIDERSHIP TO MAKE HIGHSPEED RAIL FLY NO PUN INTENDED TEXANS GENERALLY SPEAKING ARE INDEPENDENT CUSSES AND DO NOT TAKE KINDLY TO ANY FORM OF MASS TRANSIT EXCEPT IN THE FORM OF A BOEING 747 SURE THE RIDERSHIP SURVEYS THAT TGV HAS CONDUCTED HAVE SHOWN THAT THERE IS AMPLE INTEREST BUT AS WE ALL KNOW SURVEYS CAN BE SKEWED EITHER BY THE FORM OF THE QUESTIONS OR THE FORM OF THE ANSWERS TO ELICIT THE DESIRED RESPONSE FOLKS YOU CAN FORM ALL THE COMMITTEES YOU WANT TO MAKE ALL THE ENVIRONMENTALIMPACT STUDIES YOUR INVESTORS WILL PAY FOR DEVELOP MASTER PLANS UNTIL YOU'RE BLUE IN THE FACE AND WINE AND DINE ALL THE POLITICIANS IN TEXAS BUT THAT WILL NOT BRING RIDERS TO YOUR RAIL CARS NOR MONEY TO YOUR COFFERS I MUST ASK MYSELF WHY IS MORRISON KNUDSEN SO COMMITTED TO SOMETHING THAT IT CANNOT EVEN INTEREST ENOUGH INVESTORS IN TO FUND THAT NO ONE WANTS TO RIDE AND THAT WILL NOT PAY FOR ITSELF MUCH LESS EARN A PROFIT 9401050023 940105 WHO'S NEWS CORVAS INTERNATIONAL INC CORVAS INTERNATIONAL INC SAN DIEGO M BLAKE INGLE WAS ELECTED A DIRECTOR OF THIS BIOPHARMACEUTICAL CONCERN FILLING THE SECOND OF TWO VACANCIES CREATED LAST OCTOBER WHEN MICHAEL A WALL AND HUBERT JP SCHOEMAKER RESIGNED DR INGLE 51 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CANJI INC 9401050022 940105 WHO'S NEWS BLOUNT INC BLOUNT INC MONTGOMERY ALA DONALD B ZORN 57 YEARS OLD HAS BEEN NAMED PRESIDENT OF THE FORESTRY AND INDUSTRIAL DIVISION OF THIS MANUFACTURING AND CONSTRUCTION COMPANY MR ZORN SUCCEEDS BEN R YORKS 52 WHO HAS BECOME THE PRESIDENT AND CHIEF OPERATING OFFICER OF ABC RAIL PRODUCTS CORP IN CHICAGO BEFORE JOINING BLOUNT MR ZORN WAS PRESIDENT AND CHIEF OPERATING OFFICER OF GROVE CRANES WORLDWIDE A UNIT OF HANSON INDUSTRIES OF NORTH AMERICA 9401050021 940105 WHO'S NEWS WICKES LUMBER CO WICKES LUMBER CO VERNON HILLS ILL DOUGLAS J WOODS WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS BUILDING MATERIALS SUPPLIER MR WOODS 49 YEARS OLD WAS PREVIOUSLY A CORPORATE VICE PRESIDENT OF GENERAL ELECTRIC CO'S ELECTRICAL DISTRIBUTION UNIT 9401050020 940105 BUSINESS BRIEF BELLSOUTH CORP MOBILECOMM UNIT REACHES ACCORD WITH DA SYSTEMS BELLSOUTH CORP ATLANTA SAID ITS WIRELESS MOBILECOMM UNIT REACHED A PARTNERSHIP AGREEMENT WITH DA SYSTEMS INC THAT ALLOWS ELECTRONIC MAIL USERS TO SEND MESSAGES DIRECTLY TO TELEPHONE PAGERS DA SYSTEMS A CLOSELY HELD COMPANY BASED IN CAMPBELL CALIF OFFERS A SERVICE THAT CONNECTS VARIOUS ELECTRONIC MAIL SERVICES SUCH AS PRODIGY AMERICA ONLINE AND INTERNET THE GLOBAL COMPUTER NETWORK TO ONE ANOTHER THE COMPANY SAID PEOPLE ON THOSE NETWORKS CAN SEND MESSAGES DIRECTLY THROUGH MOBILECOMM'S WIRELESS PAGING NETWORK TO A PAGER THE INCREASED MOBILITY OF PEOPLE IN TODAY'S BUSINESS WORLD REQUIRES INNOVATIVE SOLUTIONS FOR KEEPING IN TOUCH SAID ALAIN BRIANCON EXECUTIVE DIRECTOR OF PRODUCT AND SERVICES DEVELOPMENT AT MOBILECOMM DA SYSTEMS SAID THAT MESSAGES CAN BE SAVED AND DOWNLOADED TO A PORTABLE COMPUTER OR PERSONAL DIGITAL ASSISTANT WITH THE USE OF MOBILECOMM'S PAGING SYSTEM 9401050019 940105 WHO'S NEWS INDRESCO INC INDRESCO INC DALLAS JL JACKSON VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS MINING AND CONSTRUCTION EQUIPMENT COMPANY WAS NAMED CHAIRMAN MR JACKSON 61 YEARS OLD SUCCEEDS RW YTTERBERG WHO RETIRED 9401050018 940105 REVIEW & OUTLOOK EDITORIAL ASIDES QUACK LIABILITY AS THE WASHINGTON LOBBYIST FOR TRIAL LAWYERS TOMMY BOGGS IS FAMOUS FOR SHOOTING DOWN LEGAL REFORMERS NOW AP REPORTS TOMMY TORTS HAS BEEN FINED 4000 FOR VIOLATING FEDERAL HUNTING RULES HE AND HIS 20 OR SO GUESTS INCLUDING CONGRESSMAN BILLY FORD OF MICHIGAN SHOT 182 DUCKS WITHOUT EVER STOPPING TO COLLECT THE BIRDS ACCORDING TO A WILDLIFE AGENT HMMM THIS SURE LOOKS LIKE A CASE OF NEGLIGENCE TO US OR PERHAPS JOINT AND SEVERAL LIABILITY OR MAYBE AN OPPORTUNITY TO SEE IF DUCKS CAN BE GIVEN LEGAL STANDING TO SUE WHERE'S THE NATURAL RESOURCES DEFENSE COUNCIL WHEN YOU REALLY NEED IT 9401050017 940105 CLINTON TO OFFER PLAN TO REVAMP FAA ACTIVITIES AIRTRAFFIC CONTROL SYSTEM WOULD BE HANDED OVER TO A NEW US ENTITY BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION PLANS TO PROPOSE LEGISLATION PUTTING THE NATION'S AIRTRAFFIC CONTROL SYSTEM IN THE HANDS OF A NEW GOVERNMENT CORPORATION INSTEAD OF THE FEDERAL AVIATION ADMINISTRATION THE INITIATIVE PART OF A BROAD AVIATION PLAN SCHEDULED TO BE DISCLOSED TOMORROW IS THE FURTHEST THE ADMINISTRATION HAS GONE TOWARD THE NOTION OF PRIVATIZING FAA FUNCTIONS GOVERNMENT OFFICIALS SAID THE LEGISLATION IS TO BE DRAFTED BY APRIL AND IS LIKELY TO BE APPLAUDED BY AIRLINES WHO CONTEND THE FAA HAS BUNGLED A DECADELONG EFFORT TO MODERNIZE THE AIRTRAFFIC CONTROL SYSTEM AND HAS BEEN SLOW TO ADOPT NEW SATELLITE TECHNOLOGY FOR TRACKING AIRPLANES WHETHER CONGRESS WILL EMBRACE THE LEGISLATION IS ANOTHER QUESTION PAST EFFORTS TO RESTRUCTURE THE FAA HAVE HIT A STONE WALL ON CAPITOL HILL AND SEVERAL KEY LAWMAKERS ALREADY HAVE EXPRESSED SERIOUS DOUBTS ABOUT ANY NEW RESTRUCTURING PLAN STILL AN ADMINISTRATION OFFICIAL SAID IF WE CAN PRESENT A COMPELLING CASE FOR WHY THIS MAKES SENSE I THINK CONGRESS WOULD BE RECEPTIVE A COMMISSION SET UP BY CONGRESS AND PRESIDENT CLINTON TO STUDY THE AIRLINE INDUSTRY'S FINANCIAL WOES ENDORSED LAST SUMMER THE IDEA OF PUTTING MANY OF THE FAA'S FUNCTIONS INTO THE HANDS OF AN INDEPENDENT FEDERAL CORPORATE ENTITY THE ENTITY COULD ISSUE LONGTERM BONDS TO PURCHASE EQUIPMENT AND ITS OPERATIONS WOULD BE FINANCED BY AIRLINE FEES AND REMOVED FROM THE FEDERAL BUDGET THAT THE COMMISSION REASONED WOULD FREE THE FAA FROM CUMBERSOME PROCUREMENT RULES THAT HAD PUT ITS MODERNIZATION PLAN YEARS BEHIND SCHEDULE EXAMPLES OF CORPORATIONS WITHIN THE FEDERAL GOVERNMENT INCLUDE THE TENNESSEE VALLEY AUTHORITY WHICH PROVIDES ELECTRIC POWER AND ECONOMICDEVELOPMENT SERVICES THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION A HOUSING AND URBAN DEVELOPMENT DEPARTMENT AGENCY THAT GUARANTEES HOUSING LOANS AND THE TRANSPORTATION DEPARTMENT'S SAINT LAWRENCE SEAWAY DEVELOPMENT CORP WHICH PROMOTES SHIPPING ON THE ST LAWRENCE SEAWAY VICE PRESIDENT AL GORE'S REINVENTING GOVERNMENT TEAM ALSO CALLED FOR DEVELOPMENT OF A PLAN TO PROVIDE AIRTRAFFIC CONTROL SERVICES THROUGH A NEW CORPORATION AND TO MAKE IT MORE BUSINESSLIKE BUT OTHERS WITHIN THE ADMINISTRATION INCLUDING FAA ADMINISTRATOR DAVID HINSON HAVE BEEN SKEPTICAL CRITICS HAVE POINTED TO SUCH QUESTIONS AS WHO WOULD BEAR LIABILITY FOR AIRTRAFFIC CONTROL PROBLEMS AND WHETHER SAFETY WOULD BE PRESERVED IF FOR EXAMPLE THE CORPORATION DECIDED TO REDUCE EXPENSES BY INCREASING THE WORKLOAD OF EACH AIRTRAFFIC CONTROLLER WHO WILL DECIDE WHETHER THIS RAISES SAFETY PROBLEMS JAMES OBERSTAR D MINN CHAIRMAN OF THE HOUSE AVIATION SUBCOMMITTEE ASKED TRANSPORTATION SECRETARY FEDERICO PENA IN A LETTER IN NOVEMBER ADMINISTRATION OFFICIALS SAY DETAILS ABOUT THE PROPOSED CORPORATION HAVE YET TO BE WORKED OUT BUT THAT THE FAA WOULD RETAIN OVERSIGHT OF SAFETY ISSUES THE CLINTON ADMINISTRATION HAD PLANNED TO STUDY FAA RESTRUCTURING ALONG WITH LESS DRAMATIC ALTERNATIVES BUT NOW WE'RE JUST GOING TO DO IT AN ADMINISTRATION OFFICIAL SAID THE DECISION TO PUSH FORWARD REFLECTS MR GORE'S INFLUENCE AS WELL AS A RECENT DISCLOSURE BY THE FAA THAT IT EXPECTS MORE THAN 12 BILLION OF ADDITIONAL COST OVERRUNS TO ITS MODERNIZATION PROJECT ALSO AVIATION AND TRAVELINDUSTRY LOBBYISTS RECENTLY JOINED FORCES TO PRESSURE THE ADMINISTRATION FOR MOREDECISIVE RESPONSES TO THE AIRLINE COMMISSION'S 61 RECOMMENDATIONS AN ADMINISTRATION OFFICIAL SAID PRESIDENT CLINTON'S AVIATION PLAN ACTS UPON 49 OF THE RECOMMENDATIONS AMONG OTHER THINGS THE ADMINISTRATION IS EXPECTED TO ENDORSE EASING THE LIMITS ON FOREIGN OWNERSHIP OF US AIRLINES AND TO OFFER PROPOSALS FOR REFORMING BANKRUPTCY LAWS THAT CRITICS SAY GIVE TOO MUCH LEEWAY TO AILING AIRLINES MR PENA ALSO WILL LAY OUT NEW INITIATIVES TOMORROW FOR PROMOTING INVESTMENT IN AIRPORTS AND PROTECTING AIRLINE CONSUMERS FROM ANTICOMPETITIVE PRACTICES AIDES SAID 9401050016 940105 BUSINESS BRIEF BIOMECHANICS CORP OF AMERICA ERGONOMICS CONCERN WINS 700000 INDONESIAN CONTRACT BIOMECHANICS CORP OF AMERICA SAID IT WON A CONTRACT VALUED AT 700000 FOR ERGONOMIC ASSESSMENT WITH PT INDUSTRI PESAWAT TERBANG NUSANTARA OF INDONESIA THE CONTRACT WHICH BEGAN IN DECEMBER IS THE SECOND ONE THE MELVILLE NY COMPANY HAS RECEIVED FROM THE GOVERNMENTOWNED AIRCRAFT MAKER AND IS BIOMECHANICS' LARGEST OVERSEAS AGREEMENT CLIFFORD GROSS CHAIRMAN AND CHIEF EXECUTIVE OF BIOMECHANICS SAID IN AN INTERVIEW THAT THE CONTRACT WILL HELP EARNINGS SUBSTANTIALLY ALTHOUGH HE DECLINED TO MAKE A SPECIFIC FORECAST BIOMECHANICS HAD A LOSS OF 22 MILLION IN 1992 9401050015 940105 WHO'S NEWS GAF CORP GAF CORP WAYNE NJ CARL R ECKARDT WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER OF INTERNATIONAL SPECIALTY PRODUCTS INC A UNIT OF THIS CHEMICAL AND BUILDING MATERIALS COMPANY MR ECKARDT 62 YEARS OLD SUCCEEDS THOMAS BOHRER WHO LEAVES TO PURSUE OTHER INTERESTS THE COMPANY SAID 9401050014 940105 BUSINESS BRIEF TRAVELERS CORP UNIT TO REFUND 375000 TIED TO HURRICANE CLAIMS TRAVELERS INDEMNITY CO OF CONNECTICUT HARTFORD CONN AGREED TO REFUND ABOUT 375000 IN DISPUTED CONDOMINIUM OWNERS' INSURANCE DEDUCTIBLES AS A RESULT OF HURRICANE ANDREW CLAIMS TRAVELERS REPRESENTATIVES INITIALLY REQUIRED POLICYHOLDERS TO FILE TWO SEPARATE CLAIMS AND PAY SEPARATE DEDUCTIBLES FOR DAMAGE CLAIMS TO BOTH THE CONTENTS OF THEIR CONDOMINIUMS AND THEIR PROPERTY ASSESSMENTS THE FLORIDA INSURANCE DEPARTMENT SAID AT THE STATE'S INSISTENCE TRAVELERS WILL NOW ALLOW POLICYHOLDERS TO FILE ONE CLAIM AND PAY ONE DEDUCTIBLE AND WILL ISSUE REFUNDS TO CONSUMERS 9401050013 940105 KMART TO CREATE NEW STOCKS TIED TO 4 OF ITS UNITS KMART CORP IS EXPECTED TO ANNOUNCE TODAY THAT IT IS CREATING SEPARATE CLASSES OF STOCK TIED TO THE EARNINGS OF FOUR OF ITS SPECIALTY STORE UNITS ACCORDING TO A PERSON FAMILIAR WITH THE PLAN THE STEP BY THE NATION'S SECONDLARGEST RETAILER UNDER WHICH THE UNITS WOULD REMAIN PART OF THE COMPANY IS ONE OF SEVERAL STRATEGIC ACTIONS THAT KMART IS EXPECTED TO UNVEIL AT A NEWS CONFERENCE TODAY THE TROY MICH COMPANY SAID YESTERDAY THAT JOSEPH E ANTONINI CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND SEVERAL OTHER TOP OFFICERS WOULD DISCUSS SUCH STRATEGIC ACTIONS TODAY A KMART OFFICIAL DECLINED TO COMMENT ON THE PLAN TO CREATE THE NEW CLASSES OF STOCK UNDER PRESSURE TO FOCUS ON ITS CORE DISCOUNTSTORE OPERATIONS KMART WOULD CREATE THE SEPARATE CLASSES OF STOCK TIED TO ITS SPORTS AUTHORITY BORDERS OFFICEMAX AND BUILDERS SQUARE SPECIALTY CHAINS WHILE THE UNITS WOULD REMAIN PART OF KMART THE NEW CLASSES OF STOCK WOULD LATER BE OFFERED TO THE PUBLIC KMART IS BEING ADVISED BY GOLDMAN SACHS & CO AND LEHMAN BROTHERS INC ON THE PROPOSAL IN OCTOBER THOMAS MURASKY KMART'S CHIEF FINANCIAL OFFICER SAID THE DISCOUNT RETAILER WAS LIKELY TO SELL 25 STAKES IN ONE OR MORE OF THE FOUR CHAINS THROUGH INITIAL PUBLIC OFFERINGS ANALYSTS HAVE SAID THAT KMART WHICH IS IN THE MIDDLE OF A BROAD RESTRUCTURING NEEDS CASH FOR THE HALFCOMPLETED 3 BILLION RENOVATION OF ITS 2430 CORE DISCOUNT STORES 9401050012 940105 INTERNATIONAL BRIEF VODAFONE GROUP PLC FIRM POSTS MONTHLY RECORD IN CONNECTIONS TO NETWORK BRITISH MOBILE TELEPHONE COMPANY VODAFONE GROUP PLC SAID THAT CONNECTIONS TO ITS NETWORK SET A MONTHLY RECORD IN DECEMBER THE COMPANY SAID ITS SUBSCRIBER BASE INCREASED BY MORE THAN 52500 LAST MONTH TO REACH A YEAREND TOTAL OF 1052000 IN THE LAST YEAR THE MOBILE PHONE MARKET HAS RETURNED TO THE GROWTH PATTERNS EXPERIENCED BEFORE THE RECESSION SAID CHRIS GENT VODAFONE'S MANAGING DIRECTOR HE ADDED THAT A SUCCESSFUL CHRISTMAS PERIOD BOOSTED SALES THIS PERIOD IS BECOMING MORE SIGNIFICANT AS THE MOBILE PHONE MOVES TOWARD BECOMING A MASSMARKET PRODUCT MR GENT SAID 9401050011 940105 TECHNOLOGY BRIEF SUMMIT TECHNOLOGY INC FDA TO REVIEW APPLICATION FOR LASER PROCEDURE ON EYES SUMMIT TECHNOLOGY INC SAID THE FOOD AND DRUG ADMINISTRATION HAS AGREED TO REVIEW ITS APPLICATION TO MARKET A LASER PROCEDURE FOR THE TREATMENT OF NEARSIGHTEDNESS THE PROCEDURE IN WHICH THE CORNEA IS RESHAPED TO IMPROVE VISION HAS BEEN USED IN MORE THAN 60000 PROCEDURES WORLDWIDE THE WALTHAM MASS COMPANY SAID AFTER TREATMENT MOST PATIENTS NO LONGER REQUIRE EYEGLASSES OR CONTACT LENSES SUMMIT'S FILING WITH THE FDA IS THE LATEST STEP IN ITS EFFORT TO MARKET THE PROCEDURE IN THE US THE APPLICATION CULMINATES MORE THAN FIVE YEARS OF CLINICAL TRIALS IN THE US INVOLVING ABOUT 2000 PROCEDURES SUMMIT SAYS THOSE TRIALS WERE SUCCESSFUL 9401050010 940105 TEXAS JOURNAL AS THEY NOW SAY WHEN YOU'RE HOT YOU'RE NOT' BY SCOTT MCCARTNEY MAYBE THE REFERENCE PRESS SHOULD BE CHECKING WEBSTER'S FOR THE DEFINITION OF HOT IN ITS RECENTLY PUBLISHED PAPERBACK THE TEXAS 500 THE AUSTINBASED PUBLISHER INCLUDED A LIST OF THE HOT 20 COMPANIES IN THE STATE BASED ON REVENUE GROWTH OVER THE PAST FIVE YEARS PROFITABILITY AND AN ASSESSMENT OF WHETHER THE GROWTH COULD CONTINUE BUT BASED ON 1993 STOCKMARKET PERFORMANCE THE HOT 20 LOOKS DOWNRIGHT CHILLY ELEVEN OF THE 20 DECLINED IN VALUE DURING 1993 AND FIVE OF THEM LOST MORE THAN A THIRD OF THEIR MARKET VALUE REDUCED SALES SLAMMED SPECIALTY RETAILERS TUESDAY MORNING CORP STOCK PRICE DOWN 47 AND 50OFF STORES INC DOWN 466 DISCOUNTING HURT TECHNOLOGY RETAILERS BABBAGE'S INC DOWN 42 AND COMPUSA INC DOWN 29 BMC SOFTWARE INC A MAKER OF SOFTWARE FOR MAINFRAME COMPUTERS NOT EXACTLY A WARM GROWTH AREA LAST YEAR SAW ITS STOCK FALL 34 AND US LONG DISTANCE CORP ENDED THE THE YEAR DOWN 18 AFTER DISCLOSING IN DECEMBER THAT THE SECURITIES AND EXCHANGE COMMISSION HAD LAUNCHED AN INFORMAL INQUIRY INTO ITS ACCOUNTING OF REVENUE AND RECEIVABLES REFERENCE PRESS PRESIDENT PATRICK J SPAIN CONCEDES THAT SOME OF THE COMPANY'S TEXAS CHOICES MAY HAVE STUMBLED BUT HE INSISTS THAT THESE COMPANIES ARE SOLIDLY POSITIONED FOR GROWTH AND HAVE A HISTORIC RECORD OF GROWTH WE THINK THEY WILL COME BACK UNDAUNTED REFERENCE PRESS HAS ALREADY LAUNCHED ANOTHER POSSIBLY ILLFATED PROJECT A LIST OF HOTGROWTH COMPANIES IN RECESSIONWRACKED LOS ANGELES WE'RE HARDPRESSED TO FIND 20 HOT COMPANIES AT ALL MR SPAIN CONCEDES 9401050009 940105 TECHNOLOGY & HEALTH CALIFORNIA OFFICIALS CHARGE SEVERAL FIRMS IN SMOGCHECK FRAUD NEWPORT BEACH CALIF ORANGE COUNTY PROSECUTORS CHARGED SEVERAL INDIVIDUALS AND BUSINESSES INCLUDING ONE OF THE NATION'S BIGGEST USEDCAR DEALERS WITH SMOGCHECK FRAUD THE INDICTMENTS MARK ONE OF THE LARGEST LAW ENFORCEMENT EFFORTS TO DATE AGAINST AUTOMOBILE SMOGCHECK SCAMS THROUGH WHICH OWNERS OF CARS THAT WOULD OTHERWISE BE BANNED FROM THE ROAD FOR VIOLATING AUTO EMISSIONS STANDARDS OBTAIN CERTIFICATES INDICATING THAT THEIR CARS HAVE PASSED SMOG INSPECTIONS LAW ENFORCEMENT OFFICIALS SAY SMOGCHECK FRAUD IS INCREASING IN MANY STATES AS MORE STRINGENT FEDERAL AND LOCAL AUTOEMISSIONS LAWS TAKE EFFECT CALIFORNIA WHICH HAS MORE CARS THAN ANY STATE AND HAS WORSE AIR THAN MOST IS A HOTBED OF SMOGCHECK FRAUD IN THE ORANGE COUNTY CASE THE COUNTY CHARGED A TOTAL OF 10 BUSINESSES AND INDIVIDUALS WITH FELONY FRAUD FOR ISSUING SMOG CERTIFICATES TO CARS THAT DIDN'T MEET STATE STANDARDS GERALD G JOHNSTON AN ENVIRONMENTAL CRIMES PROSECUTOR FOR THE COUNTY SAID THAT THOSE CHARGED SOMETIMES SOLD OR ISSUED SMOG CERTIFICATES TO CAR OWNERS WITHOUT INSPECTING AND IN SOME CASES WITHOUT EVER SEEING THE CARS AMONG THOSE CHARGED WAS GARDEN GROVE TOYOTA INC ONE OF THE BIGGEST USEDCAR DEALERS IN THE NATION THE COMPANY AND TWO FORMER MECHANICS WERE CHARGED WITH A TOTAL OF 48 FELONY COUNTS OF SMOGCHECK FRAUD AND PERJURY UNDER STATE LAWS EACH OF THOSE 48 COUNTS CARRIES A MAXIMUM SENTENCE OF UP TO FOUR YEARS IN STATE PRISON IN ADDITION TO POSSIBLE FINES GARY ALWOOD VICE PRESIDENT AND CONTROLLER OF GARDEN GROVE TOYOTA DECLINED TO COMMENT ON THE ALLEGATIONS NONE OF THE OTHERS CHARGED IN THE MATTER COULD BE REACHED TO COMMENT 9401050008 940105 MARKETING & MEDIA DISNEY ZIFFDAVIS PLAN NEW MAGAZINE CALLED FAMILY PC NEW YORK ENTERTAINMENT GIANT WALT DISNEY CO AND COMPUTER PUBLISHING CONCERN ZIFFDAVIS PUBLISHING CO PLAN TO PUBLISH A NEW MAGAZINE CALLED FAMILY PC AIMED AT THE 15 MILLION OR SO US HOUSEHOLDS THAT HAVE PERSONAL COMPUTERS AND KIDS THE MAGAZINE WHICH WILL BE FORMALLY ANNOUNCED AT THE WINTER CONSUMER ELECTRONICS SHOW IN LAS VEGAS THIS WEEK WON'T BE FULL OF JARGON AND NUMERICAL SPECIFICATIONS LIKE PC MAGAZINE ZIFFDAVIS'S FLAGSHIP TITLE INSTEAD THE PARTNERS SAY IT WILL HELP FAMILIES USE THEIR COMPUTERS MORE FULLY WITH REVIEWS LIKE THE 4 BEST ENCYCLOPEDIAS ON CDROM OR HOWTO FEATURES FOR PROJECTS SUCH AS DESIGNING THE ULTIMATE BASEBALL CARD USING A PC ZIFFDAVIS IS A UNIT OF ZIFF COMMUNICATIONS CO THE MOVE IS A RISKY ONE SINCE SEVERAL OTHER COMPUTER MAGAZINES AIMED AT FAMILIES HAVE FAILED INCLUDING ZIFFDAVIS'S OWN PC JUNIOR A 1984 MAGAZINE DIRECTED TO USERS OF AN EARLY IBM MODEL FOR KIDS IT WAS A DOG PRODUCT AND THE MAGAZINE BOMBED SAYS A ZIFFDAVIS SPOKESMAN SCHOLASTIC INC ALSO TRIED A MAGAZINE CALLED FAMILY COMPUTING WHICH IT LATER CONVERTED INTO HOME OFFICE COMPUTING ZIFF AND DISNEY SAY THE TIME IS MORE RIPE NOW TO LAUNCH A FAMILY MAGAZINE BECAUSE OF THE SHARP INCREASE IN THE NUMBER OF HOUSEHOLDS WITH COMPUTERS AND THE INCREASED USE OF THEM IN SCHOOLS THE COMPANIES ALSO HOPE TO TRADE ON DISNEY'S MARKETING AND DISTRIBUTION MUSCLE J SCOTT BRIGGS PRESIDENT OF THE ZIFFDAVIS CONSUMER MEDIA GROUP SAYS A PILOT EDITION OF FAMILY PC WILL BE PUBLISHED IN THE THIRD QUARTER AS FAMILIES PREPARE TO SEND THEIR KIDS BACK TO SCHOOL IN 1995 HE EXPECTS THE MAGAZINE TO PUBLISH MONTHLY 9401050007 940105 FIRST BANK SYSTEM TO BUY AN OPERATION OF JP MORGAN & CO MINNEAPOLIS FIRST BANK SYSTEM INC AGREED TO ACQUIRE JP MORGAN & CO'S DOMESTIC CORPORATETRUST BUSINESS THE BANK HOLDING CONCERN DIDN'T DISCLOSE THE TERMS OF THE TRANSACTION CORPORATETRUST DEPARTMENTS PROVIDE SOCALLED INDENTURE SERVICES IN WHICH THEY ACT AS TRUSTEE PAYING AND TRANSFER AGENT AND REGISTRAR ON BEHALF OF BOND ISSUERS THE MORGAN OPERATIONS BEING ACQUIRED BY FIRST BANK SERVE ABOUT 650 CLIENTS WITH 3800 BOND ISSUES IN THE MUNICIPAL REVENUE HOUSING AND CORPORATE SECTORS THE BUSINESS HAS 150 EMPLOYEES FIRST BANK IS EXPECTED TO OFFER JOBS TO ABOUT 40 OF THOSE EMPLOYEES AND AN UNDETERMINED NUMBER OF OTHER STAFFERS MAY BE RETAINED IF THEY WILL RELOCATE THE PACT WHICH IS SUBJECT TO APPROVAL BY THE COMPTROLLER OF THE CURRENCY DOESN'T INCLUDE MORGAN'S AMERICAN DEPOSITARY RECEIPT COMMERCIAL PAPER OR EUROBONDTRUST SERVICES FIRST BANK HAS BEEN EXPANDING ITS BONDINDENTURE BUSINESS IN RECENT YEARS THROUGH ITS 1993 ACQUISITIONS OF SUCH OPERATIONS AT TWO US BANCORP UNITS AND ITS 1992 PURCHASE OF CORPORATETRUST OPERATIONS OF A CALIFORNIA AFFILIATE OF BANKERS TRUST NEW YORK CORP ITS CORPORATETRUST BUSINESS CURRENTLY ADMINISTERS 10900 DEBT INSTRUMENTS REPRESENTING MORE THAN 92 BILLION IN PRINCIPAL AMOUNT OF SECURITIES THE LATEST PURCHASE THE MINNEAPOLIS CONCERN NOTED WILL MAKE IT ONE OF THE NATION'S FIVE LARGEST PROVIDERS OF BONDINDENTURE TRUSTEE SERVICES A NUMBER OF BANKS HAVE OPTED TO LEAVE THE FIELD IN PART BECAUSE SUCH SERVICES REQUIRE A BIG INVESTMENT IN SYSTEMS AND ARE MOST PROFITABLE WHEN ECONOMIES OF SCALE CAN BE OBTAINED 9401050006 940105 THE TRADITION OF NEEDBLIND ADMISSIONS IS STARTING TO DIE BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL SHOULD COLLEGES ADMIT STUDENTS BASED ON THEIR ABILITY TO PAY TUITION FOR MORE AND MORE FINANCIALLY STRAPPED COLLEGES THESE DAYS THE ANSWER IS A RELUCTANT YES WITH THE GROWTH OF COLLEGE COSTS OUTPACING BOTH FAMILY INCOME AND GOVERNMENT SUPPORT SCHOOLS ARE GIVING SO MUCH FINANCIAL AID THAT THEY CAN NO LONGER AFFORD TO ADMIT STUDENTS NEEDBLIND OR REGARDLESS OF THEIR FINANCIAL WHEREWITHAL IT IS A WRENCHING CHANGE IN THE LOFTY ARENA OF HIGHER EDUCATION WHERE MANY SCHOOLS IN RECENT YEARS HAVE PRIDED THEMSELVES ON ACCEPTING ANY APPLICANT HOWEVER PENURIOUS WHO MET THEIR STANDARDS THE CONCEPT OF NEEDBLIND ADMISSIONS DATES TO THE MID1950S BUT DIDN'T BECOME BROAD PRACTICE UNTIL THE LATE 1960S AND EARLY 1970S AS MANY COLLEGES SWEPT AWAY BIASED ADMISSIONS AND FINANCIALAID POLICIES AND STROVE TO DIVERSIFY THEIR CAMPUSES BUT HARD ECONOMICS HAVE DICTATED A TREND TOWARD REVENUEORIENTED ADMISSIONS PRACTICES WHICH IS DIVIDING THE 5600PLUS MEMBERS OF THE NATIONAL ASSOCIATION OF COLLEGE ADMISSION COUNSELORS THE ASSOCIATION OFFICIALLY ENDORSES ADMITTING CANDIDATES ON THE BASIS OF ACADEMIC AND PERSONAL CRITERIA RATHER THAN FINANCIAL NEED PART OF THE DIFFICULTY WITH TAKING SIDES OVER NEEDBLIND ADMISSIONS IS THE LACK OF CONSENSUS ON WHAT THE TERM MEANS A SHRINKING NUMBER OF COLLEGES CAN AFFORD TO ADMIT ALL STUDENTS INDEPENDENT OF NEED AT LEAST THREE OF THE 14 MEMBERS OF THE ASSOCIATED COLLEGES OF THE MIDWEST RECENTLY MOVED AWAY FROM NEEDBLIND ADMISSIONS ACCORDING TO ELIZABETH HAYFORD THE ASSOCIATION'S PRESIDENT MEMBER CARLETON COLLEGE NORTHFIELD MINN SAID LAST YEAR THAT IT MAY FOLLOW SUIT MANY OTHER COLLEGES OFFER SOME AID AND LEAVE IT TO THE STUDENT TO COME UP WITH THE REST A CONTROVERSIAL PRACTICE KNOWN AS GAPPING AT THE BOTTOM OF HIGHSCHOOL GUIDANCE COUNSELORS' LISTS ARE SCHOOLS THAT ADMIT STUDENTS BASED ON THEIR ABILITY TO PAY BUT DON'T DISCLOSE THE PRACTICE JOHN STEWART A COLLEGE ADMISSIONS COUNSELOR AT SHAWNEE MISSION SOUTH HIGH SCHOOL IN OVERLAND KAN SAYS HE HAS VERIFIED THREE CASES IN WHICH COLLEGES REJECTED STUDENTS BECAUSE THEY COULDN'T AFFORD TUITION IN ADDITION THERE WERE MAYBE HALF A DOZEN CASES WHERE I'VE FELT THAT PROBABLY WAS THE REASON HE SAYS MARIETTA COLLEGE MARIETTA OHIO DESCRIBES ITS ADMISSION PRACTICES AS NEEDBLIND EVEN THOUGH IN RECENT YEARS IT HAS BEEN USING A RATING SYSTEM TO AWARD FINANCIAL AID THOSE WHO ARE MORE DESIRABLE GET BETTER FINANCIALAID PACKAGES SAYS DENNIS DEPERRO MARIETTA'S DEAN OF ADMISSIONS AND FINANCIAL AID SMITH COLLEGE IN NORTHAMPTON MASS TOOK A DIFFERENT PATH IN 1990 WHEN IT DECIDED TO CONSIDER THE FINANCES OF ALL APPLICANTS BELOW A CERTAIN RANKING B ANN WRIGHT SMITH'S DEAN OF ENROLLMENT PLANNING ESTIMATES THAT THE NEW POLICY AFFECTED ABOUT 30 STUDENTS LAST YEAR OR 3 OF APPLICANTS COLLEGES STRUGGLING TO STAY STRICTLY NEEDBLIND FIND THE WEAK ECONOMY IS AN OBSTACLE DICKINSON COLLEGE IN CARLISLE PA IS ONE OF MANY SMALL PRIVATE COLLEGES FEELING THE EFFECTS OF CORPORATE CONSOLIDATIONS SINCE 1990 ABOUT 200 STUDENTS EACH YEAR OR 10 OF THE COLLEGE'S 2000 STUDENTS HAVE REQUIRED FIRSTTIME OR ADDITIONAL FINANCIAL AID AFTER PARENTS LOST JOBS JUDGING FROM THE EXPERIENCES OF HIGHSCHOOL STUDENTS AROUND THE COUNTRY PLENTY OF COLLEGES ARE BENDING TO MARKET PRESSURES BILL SHAIN DEAN OF ADMISSIONS AT MACALESTER COLLEGE IN ST PAUL MINN OBSERVES NEEDBLIND ADMISSIONS MEANS YOU CAN'T DISCRIMINATE AGAINST PEOPLE BECAUSE THEY'RE POOR BUT PEOPLE DON'T INTERPRET IT TO MEAN YOU CAN'T DISCRIMINATE IN FAVOR OF THE RICH SEE RELATED ARTICLE A STUDENT OF VALUE' MEANS A STUDENT WHO CAN PAY THE RISING COST OF COLLEGE WSJ JAN 5 1993 9401050005 940105 MOTLEY'S CREW A FERVENT LOBBYIST RALLIES SMALL BUSINESS TO BATTLE HEALTH PLAN THOUSANDS OF ENTREPRENEURS ARE SET TO CALL CONGRESS OVER FINANCING ISSUES A NAME THAT CLINTON KNOWS BY RICK WARTZMAN AND JEANNE SADDLER STAFF REPORTERS OF THE WALL STREET JOURNAL PHOENIX JOHN MOTLEY IS SPEAKING AT THE HOLIDAY INN CROWNE PLAZA BALLROOM HERE BEFORE 200 SMALLBUSINESS OWNERS TRYING TO FIRE THEM UP FOR AN ASSAULT ON PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN HIS ENTREATY REPLETE WITH WARNINGS ABOUT PAYROLL TAXES AND BUREAUCRATS WITH TREMENDOUS POWER EVOKES ONLY A RESTLESS MUMBLING THEN OUT OF NOWHERE A SPARK HITS DRY KINDLING I HAVEN'T HEARD THE WORD SOCIALISM' USED IN ALL THIS OFFERS NANCY ROGALSKI PRESIDENT OF R&C MANUFACTURING INC A LOCAL SHEETMETAL AND MACHINETOOL FIRM WE SHOULD USE IT MAYBE IT WOULD RILE PEOPLE UP SURE ENOUGH THE WORD QUICKLY BEGINS TO ECHO FROM TABLE TO TABLE SOCIALISM SOCIALISM ENERGIZED MR MOTLEY CHIEF LOBBYIST OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS LEANS HIS BURLY FRAME CLOSER TO THE GROUP DO I BELIEVE IT'S SOCIALISM DO I AGREE WITH ALL THE OTHER THINGS YOU'RE SAYING HELL YEAH I ABSOLUTELY DO HE SAYS BUT IF I SAY THOSE THINGS REPORTERS WOULD NEVER WRITE IT YOU'RE HELPING ME EXPRESS VIEWS I CAN'T GET IN THE MEDIA BY THE TIME THE GATHERING BREAKS UP MANY OF THE ENTREPRENEURS ARE EAGER TO HELP MR MOTLEY IN HIS STRUGGLE AGAINST THE CLINTON HEALTHCARE PLAN LEAPING TO HIS FEET ONE SMALLBUSINESS OWNER DECLARES WHEN YOU GET TO WHERE THEY DON'T BELIEVE YOU JUST CALL I'LL GO DOWN TO WHEREVER I HAVE TO I'LL SEND A HANDWRITTEN LETTER ONCE AGAIN JOHN MOTLEY IS MOLDING A CONTINGENT OF DRY CLEANERS HOME BUILDERS CORNERSTORE OPERATORS AND OTHER BUSINESS OWNERS INTO A LOBBYING FORCE FORMIDABLE ENOUGH TO SEND MANY A LAWMAKER SCRAMBLING FOR COVER WITH SOME 607000 MEMBERS STRETCHED ACROSS EVERY CONGRESSIONAL DISTRICT IN THE COUNTRY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS HAS MADE ITSELF INTO ONE OF THE PREEMINENT GRASSROOTS LOBBYING POWERS IN WASHINGTON WHEN YOU WALK MAIN STREET AS MOST MEMBERS OF CONGRESS DO ALMOST EVERY BUSINESS HAS AN NFIB STICKER ON THE DOOR SAYS REP MIKE SYNAR AN OKLAHOMA DEMOCRAT MR MOTLEY CALLS ON THIS LEGION TO WRITE LETTERS MAKE PHONE CALLS AND VISIT CAPITOL HILL TO PRESSURE LAWMAKERS ABOUT 40000 NFIB MEMBERS ARE PARTICULARLY ACTIVE A CORE GROUP KNOWN AS THE GUARDIANS SOME LOBBYISTS MAKE THEIR REPUTATION BECAUSE THEY KNOW DANNY ROSTENKOWSKI PERSONALLY OR THEY PLAY TENNIS WITH GEORGE MITCHELL SAYS BEERINDUSTRY LOBBYIST DAVID REHR REFERRING TO THE HOUSE WAYS AND MEANS CHAIRMAN AND THE SENATE MAJORITY LEADER JOHN'S NOT LIKE THAT HE GETS HIS STRENGTH FROM BEING ABLE TO GET TENS OF THOUSANDS OF PEOPLE ACROSS THE COUNTRY TO DO SOMETHING FOR HIM SHARPTONGUED AND ENERGETIC ENOUGH TO PLAY TENNIS UNTIL 11 PM ONE NIGHT AND THEN THREE MORE SETS AT SIX THE NEXT MORNING THE 49YEAROLD MR MOTLEY HAS COME TO PERSONIFY THE FEDERATION HE TOILS FOR HE PRACTICALLY HAS NFIB' STAMPED ON HIS HINDQUARTERS SAYS FORMER REP MIKE MCKEVITT A COLORADO REPUBLICAN WHO ONCE RAN THE GROUP'S LOBBYING OPERATION THE NFIB IS THE NATION'S BIGGEST SMALLBUSINESS GROUP AND THOSE WHO DON'T SHARE ITS VIEWS FEEL MR MOTLEY'S WRATH I DON'T TAKE KINDLY TO PEOPLE WHO SAY THEY'RE OUR FRIENDS AND THEN VOTE AGAINST ME HE SAYS MR MOTLEY SPEARHEADED INTENSE NFIB OPPOSITION THAT HELPED DEFEAT TWO CHAIRMEN OF THE SENATE SMALL BUSINESS COMMITTEE IN THEIR REELECTION BIDS REPUBLICAN LOWELL WEICKER NOW CONNECTICUT'S GOVERNOR IN 1988 AND WISCONSIN DEMOCRAT GAYLORD NELSON IN 1980 FOUR YEARS AGO THE GROUP HELPED WIN REPEAL OF A TAX LAW KNOWN AS SECTION 89 THAT FORCED COMPANIES TO PROVE THEY DISTRIBUTED EMPLOYEE BENEFITS FAIRLY NOW MR MOTLEY IS TAKING CHARGE OF HIS GROUP'S NEWEST PRIORITY KILLING THE CLINTON PROPOSAL THAT WOULD REQUIRE ALL BUSINESSES TO HELP PAY FOR THEIR EMPLOYEES' MEDICAL COVERAGE THE NFIB CONTENDS THAT THE SOCALLED EMPLOYER MANDATE WOULD DEVASTATE MANY SMALL FIRMS AND COST 15 MILLION JOBS MR MOTLEY SAYS IT IS LIKE TYING SMALL EMPLOYERS TO A SLED PUSHING THEM OFF A CLIFF AND HOPING THEY'RE UPRIGHT WHEN THEY REACH THE BOTTOM THE MEETING IN PHOENIX IS THE FIRST OF MORE THAN A DOZEN SCHEDULED TO SHARPEN THE NFIB OFFENSIVE WHEN CONGRESS TAKES UP HEALTH CARE AFTER RECONVENING JAN 25 MR MOTLEY ALSO WILL BRING SOME SMALLBUSINESS OWNERS TO WASHINGTON TO LOBBY HE HAS DESIGNATED SOME OF THE MOST DEDICATED FEDERATION MEMBERS AS A HEALTH ACTION RESPONSE TEAM SUCH SMALLBUSINESS OPPOSITION IS A HUGE THREAT TO PASSAGE OF AN EMPLOYER MANDATE THE FINANCING LINCHPIN OF THE CLINTON PLAN AFTER MR MOTLEY ATTACKED THE PLAN IN A TALK TO GOVERNORS IN TULSA OKLA LAST SEPTEMBER PRESIDENT CLINTON WAS SO IRKED THAT IN HIS SUBSEQUENT SPEECH HE CHALLENGED MR MOTLEY BY NAME MR MOTLEY IS NOT TO BE TAKEN FOR GRANTED SAYS JEFF ELLER A COMMUNICATIONS STRATEGIST FOR THE CLINTON HEALTHCARE TEAM BUT HE SAYS THE ADMINISTRATION HOPES TO GET AROUND HIM BY SHOWING BUSINESS OWNERS HOW THEY WOULD BENEFIT UNDER THE CLINTON PLAN THAT WON'T BE EASY MANY SMALLBUSINESS PEOPLE REALLY ARE AFRAID OF NEW COSTS AND REGULATIONS FOR SMALL BUSINESSES THERE'S INDEED A LOT TO FEAR FROM WASHINGTON SAYS ALLEN NEECE A LOBBYIST WHO WORKS FOR SEVERAL SMALLBUSINESS GROUPS AT THE SAME TIME THE MATERIAL THE NFIB SENDS ITS MEMBERS CONTAINS SCANT INFORMATION ABOUT THE SUBSIDIES THE CLINTON PLAN WOULD GIVE SMALL FIRMS TO HELP THEM PROVIDE WORKERS WITH HEALTH COVERAGE IN THE EYES OF MR MOTLEY'S FOES HIS IMPLACABLE POSITION ON THE MANDATE IS SYMPTOMATIC OF A BROADER TENDENCY HE DOES MORE THAN JUST FIGHT AGAINST THOSE GOVERNMENT PROPOSALS THAT SMALLBUSINESS OWNERS SHOULD TRULY BE AFRAID OF HE EAGERLY STOKES THEIR EVERY CONCERN AND THE NFIB PROFITS IN THE PROCESS JOHN AND HIS BOYS MAKE A LOT OF MONEY BY INCITING A LOT OF FEAR CHARGES REP SYNAR WHO HAS CLASHED FREQUENTLY WITH THE LOBBYIST MR MOTLEY SAYS THAT WE'RE NOT OUT INFLUENCING OUR MEMBERS' OPINIONS THE NFIB REPRESENTS SMALL BUSINESSES WHOSE SALES AVERAGE 300000 A YEAR BUT THE GROUP ITSELF HAS TURNED INTO A BIG BUSINESS DURING MR MOTLEY'S 23YEAR RISE THROUGH THE GROUP'S RANKS IT NOW PULLS IN ANNUAL REVENUE OF MORE THAN 60 MILLION RUNS A POLITICALACTION COMMITTEE THAT SPENT 785000 ON CAMPAIGN CONTRIBUTIONS AND POLITICAL EDUCATION DURING THE 199192 ELECTION CYCLE AND LEASES A SUITE OF TONY OFFICES IN THE SHADOW OF THE CAPITOL MR MOTLEY WAS PAID 138010 LAST YEAR ACCORDING TO NFIB TAX RECORDS NEARLY ALL OF THE NFIB'S MONEY COMES FROM MEMBERS' DUES WHICH AVERAGE 125 YEARLY MANY CRITICS SEE MR MOTLEY AS A DIEHARD RIGHTWINGER AND SOME SEE HIM AS A REPUBLICAN FRONT MAN BUT HIS PAST SUGGESTS SOMEONE MUCH HARDER TO LABEL HE COMES FROM A FAMILY OF LONG ISLAND UNION ACTIVISTS AND HE SAYS HE IS A REGISTERED INDEPENDENT AND HAS VOTED FOR PLENTY OF DEMOCRATS LOOK I REPRESENT A VERY POLITICALLY CONSERVATIVE GROUP OF PEOPLE HE SAYS THEY ARE RISK TAKERS THEY HAVE EVERYTHING THEY OWN AT RISK THEY ARE FISCAL CONSERVATIVES AND SO WE ARE A CONSERVATIVE BUSINESS ORGANIZATION INDEED HARDLINE STANCES ARE NOTHING NEW FOR THE FEDERATION WHICH WAS FOUNDED IN 1943 IN SAN MATEO CALIF OVER THE YEARS NFIB REPRESENTATIVES HAVE REACTED STRIDENTLY TO ISSUES RANGING FROM REGULATIONS OF THE LABOR DEPARTMENT IT OPERATES AS THE GESTAPO TO RAISING THE MINIMUM WAGE ANOTHER STEP IN THE DIRECTION OF COMPLETE GOVERNMENT CONTROLS TO THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION OUR MEMBERS ARE ASKING IS THIS STILL AMERICA' WHEN HE STARTED AT THE NFIB MR MOTLEY NEVER SAW HIMSELF AS A BUSINESS LEADER WHILE STUDYING AMERICAN COLONIAL HISTORY AT GEORGETOWN IN 1970 HE JOINED THE FEDERATION HAWKING MEMBERSHIPS DOOR TO DOOR HE SOON DECIDED THAT BEING A SALESMAN WASN'T FOR HIM SO HE HAD LUNCH WITH HIS BOSS WHO MADE HIM AN INTRIGUING OFFER WOULD HE LIKE TO BECOME A LOBBYIST HIS REPLY WHAT'S A LOBBYIST BY THE MID1970S MR MOTLEY WAS BUILDING THE BASE OF THE ORGANIZATION'S POWER COMPUTERIZING THE MEMBERSHIP LIST AND TABULATING CONGRESSIONAL VOTING RECORDS THE NFIB BEGAN GIVING LAWMAKERS WHO FREQUENTLY SUPPORT ITS POSITIONS GUARDIAN OF SMALL BUSINESS AWARDS NOW AN NFIB VICE PRESIDENT MR MOTLEY OFTEN WORKS IN HIS WASHINGTON OFFICE DECIDING HOW TO DEPLOY HIS TROOPS WITH A FEW COMPUTER STROKES HE CAN SELECT WHICH MEMBERS TO MARSHAL WITHIN HOURS OF SENDING OUT AN ACTION ALERT HE CAN HAVE ANY REPRESENTATIVE'S OR SENATOR'S OFFICE INUNDATED WITH PHONE CALLS AND CONSTITUENT LETTERS ALL I NEED IS 20000 MEMBERS WHO WANT TO BE INVOLVED AND I CAN TURN THIS TOWN INSIDE OUT HE ASSERTS THAT IS JUST WHAT HAPPENED DURING THE YEARSLONG FIGHT OVER FAMILYLEAVE LEGISLATION WHICH THE NFIB PLAYED A PRIME ROLE IN KILLING DURING THE BUSH ADMINISTRATION MR MOTLEY SAYS IT WAS AN OVERARCHING CONCERN ABOUT GOVERNMENT MEDDLING THAT SPURRED THE NFIB TO FIGHT THE BILL REQUIRING FIRMS TO OFFER UNPAID LEAVE SO WORKERS COULD CARE FOR NEWBORNS NEWLY ADOPTED CHILDREN AND SERIOUSLY ILL FAMILY MEMBERS AT ONE POINT NFIB MEMBERS SENT SEN ORRIN HATCH 500 LETTERS A WEEK SO WORRIED WAS THE GROUP THAT THE UTAH REPUBLICAN MIGHT REVERSE HIS OPPOSITION TO THE BILL IN MISSOURI MEMBERS TOLD SOME FINANCIAL BACKERS OF GOP SEN CHRISTOPHER BOND THAT HE WAS WORKING AGAINST THEIR INTERESTS BY PUSHING COMPROMISE LEGISLATION SEN BOND TOLD AIDES HE HAD NEVER SEEN SUCH HARDBALL TACTICS DEMOCRATIC REP PAT SCHROEDER OF COLORADO SAYS SHE FOUGHT THE NFIB FOR YEARS OVER FAMILY LEAVE EVEN THOUGH THE LEGISLATION WOULD AFFECT ONLY FIRMS WITH 50 OR MORE EMPLOYEES AND THEREFORE SPARED 95 OF THE MOMANDPOP BUSINESSES THAT MAKE UP MR MOTLEY'S MEMBERSHIP I WENT OVER TO DO A FORUM ON FAMILY LEAVE FOR SMALL BUSINESSES AND EVERYBODY WAS SCREAMING AND YELLING AT ME SHE RECALLS I TOLD THEM IT DIDN'T AFFECT THEM BUT THEY WOULDN'T LISTEN TO ME THEY WERE LISTENING TO HIM DESPITE MR MOTLEY'S EFFORTS EARLY LAST YEAR CONGRESS PASSED THE BILL AND MR CLINTON PROMPTLY SIGNED IT INTO LAW THE STRUGGLE WAS A HARBINGER OF COMING NFIB BATTLES WITH THE NEW ADMINISTRATION BUT MR MOTLEY SAYS HE DOESN'T PICK THE BATTLES HIMSELF STRESSING THAT HE ABIDES BY ONE RULE BEFORE HE ACTS HE ASKS UNDER HIS DIRECTION THE FEDERATION SPENDS 600000 A YEAR TO POLL MEMBERS ON POLICY MATTERS EVERY EIGHT WEEKS IT THEN SENDS THE RESULTS BUSINESS BY BUSINESS TO ALL 535 CONGRESSIONAL OFFICES LAYING OUT THE VIEWS OF TENS OF THOUSANDS OF ENTREPRENEURS IS ONE OF THE MOST EFFECTIVE WAYS ANYBODY COULD LOBBY SAYS REP CHARLES STENHOLM A DEMOCRAT FROM TEXAS YET CRITICS CONTEND MANY OF THE SURVEYS ARE SLANTED FOR INSTANCE IN A BRIEF POLL THE GALLUP ORGANIZATION CONDUCTED FOR THE NFIB IN SEPTEMBER TO MEASURE MEMBERS' INITIAL GENERAL RESPONSE TO THE HEALTHCARE PLAN 84 OF THOSE QUESTIONED OPPOSED A REQUIREMENT THAT THEY PAY THE BULK OF THE COST OF THEIR WORKERS' HEALTH COVERAGE AMONG THAT 84 ONLY ONETHIRD SAID THEY WOULD LESSEN THEIR OPPOSITION IF THEY GOT A GOVERNMENT SUBSIDY BUT ROBERT BLENDON A POLLING EXPERT AT THE HARVARD SCHOOL OF PUBLIC HEALTH SAYS THE SURVEY DIDN'T GIVE RESPONDENTS ENOUGH DETAIL ON HOW GENEROUS THE SUBSIDIES WOULD BE THEY'RE NOT PLAYING FAIR BALL HERE SAYS MR BLENDON WHO REVIEWED THE POLLING MATERIAL FOR THIS NEWSPAPER SMALLBUSINESS PEOPLE DON'T LIKE MANDATES IN GENERAL I AGREE WITH THEM BUT WHEN THOSE BUSINESS OWNERS SEE THE SIZE OF THE SUBSIDY YOU'RE TALKING ABOUT IT CHANGES THEIR MINDS UNDER THE CLINTON PLAN THE SMALLEST LOWESTWAGE FIRMS WOULD SPEND NO MORE THAN 35 OF PAYROLL FOR ALL OF THEIR WORKERS TO RECEIVE GUARANTEED MEDICAL COVERAGE ONCE THE SUBSIDIES ARE FIGURED IN THE RISE IN HEALTHCARE COSTS FOR MANY SMALL FIRMS WOULD BE THE EQUIVALENT OF AN INCREASE IN THE MINIMUM WAGE OF 15 CENTS TO 35 CENTS AN HOUR DESPITE THE NFIB'S POLLING MR ELLER OF THE CLINTON HEALTHCARE TEAM CONTENDS THAT MR MOTLEY AND THE LEADERSHIP OF THE NFIB HAVE BECOME VERY OUT OF TOUCH WITH THEIR MEMBERSHIP MR ELLER SAYS THAT WHEN THE SMALL BUSINESS ADMINISTRATION HELPS OWNERS FIGURE WHAT THEIR MEDICAL COSTS WOULD BE UNDER THE CLINTON PLAN MANY ARE SURPRISED AT HOW WELL THEY WOULD DO THEIR REACTION OFTEN IS I DIDN'T KNOW THAT THE NFIB DIDN'T TELL ME THAT' MR ELLER SAYS MR MOTLEY ISN'T BACKING DOWN I DON'T CARE WHAT THE SUBSIDY SCHEME IS HE SAYS THIS IS THE GOVERNMENT TAKING TOTAL AND COMPLETE CONTROL AND MR ELLER'S COMMENTS NOTWITHSTANDING IT IS CLEAR THAT MANY OF MR MOTLEY'S CONSTITUENTS AGREE WITH HIS STANCE I HAVE NO CHOICE BUT TO START CONTACTING CONGRESS SAYS BRIAN PINNEY THE OWNER OF CORPORATE CLEANING INC AN ARIZONA OFFICEMAINTENANCE COMPANY THIS THING WOULD RADICALLY CHANGE THE WAY I DO BUSINESS ALTHOUGH MR MOTLEY'S STRENGTH COMES FROM OUTSIDE THE BELTWAY HE KNOWS HIS WAY AROUND THE INSIDE ON CAPITOL HILL HE IS AS GOOD A VOTE COUNTER AS I'VE EVER SEEN REP MCKEVITT SAYS PERHAPS MOST IMPORTANT IN WASHINGTON TERMS HE HAS ACCESS IN JUNE MR MOTLEY AND NFIB PRESIDENT JACKSON FARIS WERE USHERED INTO THE OVAL OFFICE FOR A FEW MINUTES WITH MR CLINTON TO DISCUSS NFIB OPPOSITION TO THE CLINTON ECONOMIC PLAN MR MOTLEY ALSO HAS BEEN TRYING TO FORGE ALLIANCES WITH OTHER GROUPS IN NOVEMBER HE MET WITH JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION WHICH HAD BEEN IN FAVOR OF AN EMPLOYER MANDATE WE DIDN'T WANT TO GO TO WAR WITH THE NFIB OVER THE MANDATE MR TODD SAYS IN DECEMBER RESPONDING TO PRESSURE FROM ITS OWN MEMBERSHIP THE AMA ANNOUNCED IT WOULD BE OPEN TO OTHER FINANCING IDEAS MEANTIME THE NFIB IS THROWING ITS SUPPORT BEHIND ALTERNATIVE HEALTHCARE PLANS INCLUDING THOSE BY DEMOCRATIC REP JIM COOPER OF TENNESSEE AND GOP SEN JOHN CHAFEE OF RHODE ISLAND THAT DON'T INCLUDE AN EMPLOYER MANDATE MR MOTLEY WAS SO IMPASSIONED ABOUT A MANDATE THAT EARLIER THIS YEAR HE TURNED DOWN AN INVITATION TO EVEN APPEAR BEFORE HILLARY RODHAM CLINTON'S HEALTHCARE TASK FORCE IN AUGUST NEW YORK REP JOHN LAFALCE CHAIRMAN OF THE HOUSE SMALL BUSINESS COMMITTEE FINALLY GOT MR MOTLEY AND MRS CLINTON TOGETHER FOR A CHAT IT WAS PLEASANT ENOUGH MR MOTLEY EVEN RECOMMENDED A COUPLE OF RESTAURANTS TO HER BUT THEY DIDN'T MAKE MUCH HEADWAY ON RESOLVING THEIR SHARP DIFFERENCES WEEKS LATER MR MOTLEY GOT A SIGNED PHOTOGRAPH FROM THE MEETING SHOWING HIM REP LAFALCE AND MRS CLINTON STANDING HUDDLED TOGETHER HANDS CLASPED AS HE READ THE INSCRIPTION HE COULDN'T HELP BUT BE TAKEN ABACK WITH BEST WISHES THAT WE WILL SOLVE THE HEALTHCARE CHALLENGE TOGETHER MRS CLINTON WROTE I THOUGHT I SHOULD VERIFY THE HANDWRITING MR MOTLEY SAYS I THOUGHT MAYBE LAFALCE WAS PLAYING A JOKE ON ME 9401050004 940105 COMMODITIES SOME WHEAT CONTRACT PRICES JUMP AMID REPORTS THAT CHINA MAY BUY ABOUT 404 MILLION BUSHELS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO PRICES OF SOME WHEAT CONTRACTS JUMPED AMID REPORTS THAT CHINA IS INTERESTED IN BUYING ABOUT 404 MILLION BUSHELS OF SUBSIDIZED US WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE SOFT RED WINTER WHEAT CONTRACT FOR MARCH DELIVERY SOARED EIGHT CENTS A BUSHEL TO SETTLE AT A LIFEOFCONTRACT HIGH OF 38075 A BUSHEL CHINA IS A MAJOR IMPORTER OF WHEAT BUT ITS PURCHASES HAVE BECOME SPORADIC OVER THE PAST YEAR IT LAST BOUGHT A SIGNIFICANT AMOUNT OF US WHEAT IN OCTOBER THAT IS WHEN AGRICULTURE SECRETARY MIKE ESPY TRAVELED TO CHINA TO CALM CONCERNS ABOUT REPORTS OF A MOLD IN US WHEAT HE ALSO SOUGHT TO INVESTIGATE WHETHER TIGHT CREDIT WAS PARTLY TO BLAME FOR SLOWING US GRAIN EXPORTS TO CHINA A LARGE CHINESE WHEAT DEAL WOULD REPRESENT A CHUNK OF THE BUSINESS US GRAIN TRADERS HAD EXPECTED FOR THE YEAR ENDING MAY 31 CHINA IS GENERALLY EXPECTED TO BUY UP TO 83 MILLION BUSHELS OF US WHEAT OR ABOUT ONETHIRD OF ITS TOTAL FOREIGN WHEAT PURCHASES GRAIN TRADERS SAID THAT CHINA'S WHEAT PURCHASES ARE LESS FREQUENT PARTLY BECAUSE THE GOVERNMENT HAS BEGUN TO IMPORT WHEAT ONLY WHEN IT HAS FIRM ORDERS FROM DOMESTIC PROCESSORS THEY SAID THE CHINESE GRAIN IMPORTING AGENCY USED TO BUY WHEAT BASED ON GOVERNMENT FORECASTS THEN DISTRIBUTE THE GRAIN CHINA IS ALSO BECOMING MORE SELFSUFFICIENT ACCORDING TO GRAIN TRADERS CHINA WANTS TO BUY THE US WHEAT FOR ABOUT 240 A BUSHEL UNDER A PROGRAM DESIGNED TO BOOST US GRAIN EXPORTS THE AGRICULTURE DEPARTMENT COMPENSATES EXPORTERS FOR SELLING WHEAT AT A DISCOUNT PRICE TO TARGETED NATIONS IF CHINA'S REQUEST IS ACCEPTED BY THE DEPARTMENT THE US GOVERNMENT WOULD PAY AN EXPORT SUBSIDY OF MORE THAN 1 A BUSHEL PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SETTLED MIXED AS SPECULATION GREW ABOUT HOW THE AGRICULTURE DEPARTMENT NEXT WEEK WILL REVISE ITS HARVESTED ESTIMATES OF THE RAINPLAGUED CROPS DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO SAID HE EXPECTS THE DEPARTMENT TO LOWER THE OFFICIAL CORNCROP ESTIMATE TO 642 BILLION BUSHELS FROM THE 65 BILLIONBUSHEL FORECAST RELEASED IN NOVEMBER MR BASSE SAID THE MARCH CORNFUTURES CONTRACT MIGHT TRADE BETWEEN 320 A BUSHEL AND 325 A BUSHEL IF THE GOVERNMENT DROPS ITS FORECAST FOR US CORN STOCKPILES ON AUG 31 BELOW 800 MILLION BUSHELS LAST SUMMER EXCESSIVE RAIN AND FLOODING IN THE MIDWEST SLASHED THE SIZE OF THE US CORN CROP BY ABOUT ONETHIRD FROM THE RECORD 1992 HARVEST OF 948 BILLION BUSHELS AS A RESULT CORN STOCKPILES THIS YEAR ARE EXPECTED TO BECOME THE TIGHTEST SINCE THE 1970S SOME TRADERS EXPECT THE GOVERNMENT TO SLIGHTLY RAISE ITS CORN HARVEST ESTIMATE BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL SAID HIS FIRM EXPECTS THE DEPARTMENT TO RAISE THE CORN HARVEST FIGURE BY 11 MILLION BUSHELS SUCH A MOVE WOULD TAKE SOME PRESSURE OFF CORNFUTURES PRICES WHICH ARE ABOUT 40 HIGHER THAN 12 MONTHS AGO IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY SLIPPED HALF A PENNY A BUSHEL TO SETTLE AT 30625 A BUSHEL IN OTHER COMMODITY MARKETS YESTERDAY ORANGE JUICE ORANGEJUICE FUTURES PRICES RETREATED AS FORECASTERS PLAYED DOWN THE POSSIBILITY OF A FREEZE THAT MIGHT DAMAGE FLORIDA'S ORANGE CROP AT NEW YORK'S COTTON EXCHANGE YESTERDAY ORANGE JUICE FOR MARCH DELIVERY WAS DOWN 365 CENTS TO 11210 A POUND ON MONDAY PRICES HAD SOARED AFTER WEATHER SERVICES CORP A PRIVATE FORECASTING CONCERN PREDICTED THE POSSIBILITY OF A FLORIDA FREEZE YESTERDAY HOWEVER IT BECAME CLEAR THAT A FROST PROBABLY WON'T OCCUR IN THE SOUTHERN STATE'S CITRUSGROWING REGIONS ANY TIME THIS WEEK SAID JIM CANDOR ASSISTANT VICE PRESIDENT WITH ACCUWEATHER INC ANOTHER FORECASTING COMPANY THERE IS SOME FAIRLY COLD AIR IN WESTERN CANADA THAT MAY COME DOWN TO FLORIDA THROUGH THE ROCKIES AND TEXAS BUT IT'S JUST NOT THE CLASSIC SETUP TO PRODUCE A FREEZE MR CANDOR SAID TEMPERATURES WILL BECOME COLDER NEXT WEEK HE ADDED BUT HE SAID THAT IT IS TOO EARLY TO KNOW WHETHER THEY WILL BE COLD ENOUGH TO DAMAGE THE ORANGE CROP ENERGY CRUDE OIL FUTURES PRICES SETTLED SLIGHTLY HIGHER LED BY SURGING PETROLEUMPRODUCTS PRICES TRADERS SAID THE GAINS WERE FUELED BY EXPECTATIONS THAT SOME US REFINERIES WERE SCHEDULED TO SHUT DOWN UNITS FOR SEASONAL MAINTENANCE ALSO HELPING TO PROP UP PRICES IS SPECULATION THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AND SOME NONOPEC PRODUCERS MAY BE MOVING TOWARD A PLAN TO CUT OIL PRODUCTION DESPITE TALK OF A POSSIBLE MEETING BETWEEN THE TWO GROUPS ONLY OMAN WHICH HAS BEEN LEADING THE EFFORT TO ELICIT CUTS FROM NONOPEC PRODUCERS HAS COMMITTED TO AN ACTUAL REDUCTION IN OUTPUT OTHER COUNTRIES SUCH AS MAYLASIA HAVE SAID THEY WILL CUT OUTPUT ONLY IF OTHER WORLD PRODUCERS DO SO AS REPORTED A SENIOR OPEC SOURCE TOLD DOW JONES INTERNATIONAL PETROLEUM REPORT THAT MINISTERS ARE CONSIDERING MOVING THEIR MEETING SCHEDULED FOR MARCH 25 TO EITHER THIS MONTH OR EARLY FEBRUARY BECAUSE OF SUSTAINED WEAKNESS IN PRICES THE SOURCE SAID THAT IF THE MEETING DATE IS CHANGED IT IS LIKELY TO TAKE PLACE BEFORE THE START OF THE ISLAMIC HOLY PERIOD OF RAMADAN AROUND FEB 11 SOME MARKET PARTICIPANTS HOWEVER REMAIN DOUBTFUL OF OPEC'S RESOLVE THE OMANIS ARE JUST INFLATING A LOT OF TRIAL BALLOONS TO SEE IF THE SAUDIS WILL GO ALONG SAID PETER GIGNOUX WHO RUNS SMITH BARNEY'S OIL DESK IN LONDON AND THEY WON'T GET A RISE OUT OF THE SAUDIS UNLESS THEY'RE PRESENTED WITH AN AGREEMENT HELD TOGETHER WITH SUPERGLUE 9401050003 940105 INTERNATIONAL AS BANESTO'S SHORTFALL LOOMS LARGER THERE'S SCANT HOPE FOR EASY TAKEOVER BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID WITH BANCO ESPANOL DE CREDITO FACING A FINANCIAL SHORTFALL OF AT LEAST 500 BILLION PESETAS 348 BILLION THERE IS LITTLE HOPE OF A SINGLE SPANISH BANK TAKING IT OVER WITHOUT RUNNING THE RISK OF BECOMING CONTAMINATED BY ITS FINANCIAL TROUBLES BANK OF SPAIN OFFICIALS SAID INSTEAD ANALYSTS SAY BANESTO AS THE BANK IS KNOWN PROBABLY WILL HAVE TO WRITE OFF LOSSES AGAINST RETAINED EARNINGS AND RESERVES WHICH WILL ENTAIL A SHARP OR TOTAL REDUCTION IN CAPITAL WITH ASSETS OF SEVEN TRILLION PESETAS BANESTO CURRENTLY HAS CAPITAL AND RESERVES OF 392 BILLION PESETAS GIVING IT A NET SHORTFALL OF 108 BILLION PESETAS AND ANALYSTS FEAR THAT FURTHER INVESTIGATION IS LIKELY TO SHOW THAT TOTAL FINANCING NEEDS ARE CLOSER TO 700 BILLION PESETAS OR MORE THAT IS CLEARLY MORE THAN ITS OWN INVESTORS BELIEVED WAS NECESSARY ROBERTO MENDOZA VICE CHAIRMAN OF JP MORGAN & CO WHICH HAS A STAKE IN BANESTO ALONG WITH OTHER INVESTORS THROUGH ITS CORSAIR PARTNERSHIP BELIEVED THE BANK WAS IN BETTER FINANCIAL SHAPE THAN REGULATORS DID IN A LETTER DATED DEC 27 TO THE BANK OF SPAIN MR MENDOZA WHO WAS A DIRECTOR OF THE BANK SAID JP MORGAN SUPPORTS BANESTO'S CURRENT MANAGEMENT AND BELIEVES THAT BANESTO'S PROSPECTS FOR FUTURE PROFITABILITY ARE STRONG THE MANAGEMENT TEAM THAT TOOK OVER AT BANESTO LAST WEEK AFTER THE BANK OF SPAIN OUSTED BANESTO'S CHAIRMAN AND BOARD MAY ASK SPAIN'S OTHER BIG BANKS TO INJECT FRESH CAPITAL EVENTUALLY HANDING THEM VIRTUAL OWNERSHIP OF THE BANK SPAIN'S FOURTH LARGEST BANKS ARE WAGERING THAT THE BANK OF SPAIN WILL MAKE THIS MEDICINE EASIER TO SWALLOW BY REDUCING THEIR RESERVE REQUIREMENTS IN AN EFFORT TO PROVIDE THEM WITH INCREASED LIQUIDITY A CAPITAL REDUCTION MAY RENDER WORTHLESS THE STAKES THAT INDIVIDUAL SHAREHOLDERS NOW HOLD IN THE BANK THAT MAY BE PARTICULARLY PAINFUL FOR INVESTORS WHO DRAWN BY A BLITZ OF PUBLICITY SUBSCRIBED TO THE SECOND STAGE OF A 94 BILLION PESETA SHARE ISSUE THAT BANESTO LAUNCHED EARLIER THIS YEAR UNDER JP MORGAN'S DIRECTION MANY ANALYSTS AND BANKERS BELIEVE THAT BANESTO'S NEW MANAGEMENT MAY OPT TO REDUCE BANESTO'S CAPITAL TO ITS NOMINAL VALUE ANOTHER POSSIBILITY WOULD BE TO RESUME TRADING IN THE BANK'S SHARES AND ALLOW ITS SHARE PRICE TO DROP TO ITS MARKET VALUE THEY POINT OUT THAT IN SIMILAR SITUATIONS IN THE PAST SOME INVESTORS CHOSE TO BUY CHEAP SHARES IN TROUBLED COMPANIES IN THE HOPES THAT THEY WOULD REGAIN VALUE OVER TIME BANK OF SPAIN GOV LUIS ANGEL ROJO ISSUED A MESSAGE OF OPTIMISM WHEN HE APPEARED BEFORE A SPECIAL CONGRESSIONAL COMMITTEE LAST WEEK TO EXPLAIN BANESTO'S SITUATION SAYING IMPROVED MANAGEMENT COULD TURN AROUND THE BANK'S FINANCES BANESTO'S ACCOUNTS WERE ALMOST COMPLETELY BALANCED IN 1989 JUST OVER A YEAR AFTER MARIO CONDE TOOK OVER AS CHAIRMAN BUT BANESTO'S AGGRESSIVE LENDING POLICY BETWEEN 1988 AND 1991 LED TO A SHARP INCREASE IN BAD LOANS JUST WHEN THE BANK WAS ENGAGING IN AN EXPENSIVE WAR OVER DEPOSITS AND SUFFERING STEEP LOSSES ON ITS INVESTMENT PORTFOLIO MR ROJO SAID FURTHERMORE THE BANK INVESTED IN WHAT MR ROJO DESCRIBED AS UNPROFITABLE ACTIVITIES AND EMPLOYED TRICKY ACCOUNTING TECHNIQUES THAT MASKED THE BANK'S TRUE FINANCIAL SITUATION MUCH OF THIS FINANCIAL ENGINEERING WAS AIMED AT PLACING TREASURY STOCK OR BANESTO'S OWN SHARES AMONG ITS UNITS EMPLOYEES OR COMPANIES LINKED TO THE BANK ANALYSTS BELIEVE UNDER SPANISH LAW A LISTED COMPANY OR FINANCIAL INSTITUTION CAN'T HOLD MORE THAN 5 OF ITS SHARES ANALYSTS ESTIMATE THAT BANESTO MAY INDIRECTLY OWN AS MUCH AS 35 OF ITS OWN SHARES ALTHOUGH THE RASH OF OPERATIONS THAT THE BANK CARRIED OUT TO PLACE ITS SHARES MAKE IT ALMOST IMPOSSIBLE TO DETERMINE THE EXACT VOLUME OF TREASURY STOCK THE BANK HAS DECLARED IT HOLDS JUST SLIGHTLY MORE THAN 4 OF ITS SHARES ACCORDING TO THE STOCK EXCHANGE COMMISSION IN SPAIN'S INCREASINGLY COMPETITIVE MARKET SOME BANKS ARE LOOKING WITH SUSPICION AT THE PRIVILEGED ROLE THAT BANCO BILBAO VIZCAYA HAS TAKEN IN BANESTO'S REORGANIZATION PLAN IN FACT 18 OF BBV'S EXECUTIVES FORM PART OF BANESTO'S NEW MANAGEMENT TEAM ALFREDO SAENZ THE VICE CHAIRMAN OF BBV WAS PUT IN CHARGE OF BANESTO BY THE BANK OF SPAIN LAST WEEK THEN YESTERDAY HE CHOSE A TEAM OF 17 EXECUTIVES TO MANAGE BANESTO 16 OF WHOM COME FROM BBV ALTHOUGH ANALYSTS SAY THAT A MERGER WITH BANESTO WOULD PERMIT BBV TO RECAPTURE ITS POSITION AS SPAIN'S BIGGEST BANK LOST WHEN BANCO CENTRAL HISPANO WAS CREATED THROUGH A MERGER THREE YEARS AGO THEY ALSO SAY SUCH A MOVE WOULD GO COUNTER TO THE COSTCUTTING MEASURES THAT BBV HAS UNDERTAKEN IN RECENT YEARS BBV STILL IS STRUGGLING TO CLOSE BRANCH OFFICES THAT WERE DUPLICATED AS A RESULT OF ITS OWN CREATION BBV WAS FORMED SIX YEARS AGO IN THE MERGER OF TWO BASQUE BANKS A LIKELIER CANDIDATE TO TAKE OVER BANESTO ANALYSTS SAID WOULD BE BANCO SANTANDER ONE OF SPAIN'S MOST PROFITABLE AND LIQUID BANKS A MARRIAGE WITH BANESTO WOULD ENABLE SANTANDER TO LEAPFROG RIVALS TO A TOP POSITION IN THE SPANISH RANKING A SANTANDER SPOKESMAN DECLINED TO COMMENT AND SPOKESMEN AT OTHER BIG BANKS WOULD SAY ONLY THAT THEIR INSTITUTIONS ARE WILLING TO PLAY A ROLE TO SAFEGUARD THE SPANISH FINANCIAL SYSTEM BUT THAT THEIR ULTIMATE COURSE OF ACTION DEPENDS ON A FINAL AUDIT OF BANESTO'S ACCOUNTS 9401050002 940105 WORK & FAMILY BY SUE SHELLENBARGER AN ADULT DAYCARE BOOM PROPELS A MOVE TO SET UP A NATIONAL ACCREDITING SYSTEM ADULT DAYCARE CENTERS HAVE MULTIPLIED TENFOLD SINCE THE MID1980S TO AN ESTIMATED 3000 NATIONWIDE AND THE TREND IS EXPECTED TO CONTINUE AS MORE PARENTS OF EMPLOYED BABY BOOMERS REACH AGES AT WHICH THEY NEED DAYTIME CARE MANY EMPLOYERS HAVE BEGUN PROVIDING REFERRALS TO ADULT DAY CARE AND OTHER SERVICES TO AID THE ESTIMATED 20 OF WORKERS WHO CARE FOR AGING RELATIVES BUT ONLY ABOUT HALF THE STATES REGULATE ADULT DAYCARE CENTERS AND QUALITY IS UNEVEN FACILITIES RANGE FROM HIGHQUALITY CENTERS OFFERING HEALTH CARE AND EDUCATIONAL EXERCISE CULTURAL AND SOCIAL PROGRAMS TO WAREHOUSES WHERE AGED AND EMOTIONALLY ILL PEOPLE ARE THROWN TOGETHER TO SPEND MOST OF THEIR DAYS WATCHING TELEVISION NOW THE NATIONAL COUNCIL ON THE AGING WITH PARTIAL FUNDING FROM AMERICAN TELEPHONE & TELEGRAPH AND TWO OF ITS UNIONS HAS BEGUN SETTING UP AN ACCREDITATION PROGRAM TO ENCOURAGE CENTERS TO UPGRADE QUALITY AND HELP CONSUMERS FIND HIGHQUALITY CARE THE COUNCIL IS TRAINING AIDES AT ADULT DAYCARE CENTERS IN FIVE STATES AND URGING STATE ORGANIZATIONS OF CENTER DIRECTORS TO EMBRACE UNIFORM QUALITY STANDARDS SAYS DONNA L WAGNER THE COUNCIL'S VICE PRESIDENT PROGRAMS BY 1996 THE NATIONAL INSTITUTE ON ADULT DAY CARE A COUNCIL UNIT PLANS TO ENDORSE CENTERS BASED ON QUALITY OF PROGRAMS AND STAFF IN ONE OF THE NATION'S FIRST WILDCAT STRIKES BY CHILDCARE WORKERS 11 EMPLOYEES OF A KINDERCARE LEARNING CENTERS FACILITY IN RALEIGH NC LOST THEIR JOBS IN A PROTEST OVER PAY THE WALKOUT REFLECTS BROADENING DISSATISFACTION AMONG CHILDCARE WORKERS OVER LOW WAGES INDUSTRYWIDE SEVERAL CHILDCARE CENTERS IN CANADA AND THE US CLOSED ON WORTHY WAGE DAY IN APRIL WHEN ADVOCACY GROUPS STAGED ONEDAY WALKOUTS THOUGH NO WORKERS LOST THEIR JOBS THE STAFFERS AT THE RALEIGH CENTER REFUSED TO REPORT TO WORK IN DECEMBER AFTER THEY DIDN'T GET A 20CENTANHOUR RAISE THEY SAY WAS PROMISED BY A PREVIOUS DIRECTOR OF THE CENTER WHO RESIGNED BEFORE THE RAISES CAME THROUGH SAYS RENNE SUTTON ONE OF THE FORMER EMPLOYEES THE WOMEN WHO MAKE ABOUT 460 TO 560 AN HOUR RECEIVED RAISES OF A PENNY TO 15 CENTS MS SUTTON SAYS THE 11 STRIKERS WHO LACK PROTECTION UNDER LABORRELATIONS LAW BECAUSE THEY AREN'T PART OF A COLLECTIVE BARGAINING UNIT LOST THEIR JOBS UNIONIZING WASN'T EVEN ON OUR MINDS WE JUST WANTED TO BE HEARD AND UNDERSTOOD MS SUTTON SAYS SHE SAID STAFFERS COMPLAINED THAT THE CENTER LACKED ENOUGH BACKUP EMPLOYEES TO COVER FOR THEM WHEN THEY WERE ILL OR TO ALLOW THEM FLEXIBILITY TO TAKE BREAKS WHEN NEEDED WORKERS ALSO WERE UPSET THAT THE SMALLERTHANEXPECTED RAISES CAME SHORTLY AFTER KINDERCARE HAD RAISED TUITION BOUGHT 10 COMPUTERS AND INSTALLED A SECURITY SYSTEM SHE SAYS JANICE TRONICK A REGIONAL MANAGER FOR KINDERCARE THE NATION'S LARGEST CHILDCARE CHAIN SAYS SHE CAN'T CONFIRM THE SIZE OF THE RAISES BUT IF ANYONE RECEIVED A RAISE AS SMALL AS ONE CENT AN HOUR IT WAS A MISTAKE SHE SAYS KINDERCARE'S DISTRICT MANAGER MET WITH THE STAFFERS THE DAY BEFORE THE WALKOUT EXPRESSED CONCERN ABOUT THEIR GRIEVANCES AND PROMISED TO BE AVAILABLE THE NEXT DAY TO DISCUSS THEM INDIVIDUALLY THE STAFFERS ALSO WERE TOLD IF THEY DID NOT SHOW UP FOR WORK THEY WOULD NOT HAVE JOBS SHE SAYS TWO OF THE FIVE WHO REPORTED TO WORK GOT ADDITIONAL RAISES AFTER MEETING WITH THE DISTRICT MANAGER SHE SAYS KINDERCARE SAYS IT OFFERS EMPLOYEES MEDICAL AND DENTAL BENEFITS THAT ARE COMPETITIVE WITH OTHER INDUSTRIES AS WELL AS DISCOUNTS FOR CHILD CARE AND RAISES FOR PARTICIPATION IN TRAINING PROGRAMS KINDERCARE SAYS ITS RATIO OF STAFFERS TO CHILDREN IS APPROPRIATE AND IS MONITORED CAREFULLY FAMILY PROBLEMS UPSET MEN AT WORK JUST AS MUCH AS WOMEN A STUDY FINDS THE FINDINGS BY ROSALIND BARNETT A VISITING SCHOLAR AT RADCLIFFE COLLEGE'S MURRAY RESEARCH CENTER DASH STEREOTYPES THAT EMPLOYED WOMEN WORRY MORE THAN MEN ABOUT FAMILY PROBLEMS A SAMPLING OF 300 COUPLES WITH BOTH HUSBAND AND WIFE EMPLOYED FULL TIME SHOWS THAT FAMILY PROBLEMS AFFECT MEN'S HEALTH AS MUCH AS WOMEN'S AND THAT WOMEN ARE NO MORE CRIPPLED BY CONCERNS IN THEIR RELATIONSHIPS THAN MEN DR BARNETT SAYS STRESS OVER PROBLEMS WITH CHILDREN OR MARITAL CONFLICT APPEARED TO BE MORE RELATED TO RIGID FULLTIME WORK SCHEDULES THAN TO GENDER DR BARNETT SAYS MEN WORKING FULL TIME FOR INSTANCE WERE MORE LIKELY TO BRING FAMILY CONCERNS TO THE OFFICE THAN WOMEN WORKING PART TIME THE FINDINGS INDICATE THAT PEOPLE OF EITHER SEX WITH PROBLEMS AT HOME ARE LESS LIKELY TO HANDLE WORK CHALLENGES WELL DR BARNETT SAYS THE STUDY ALSO SUGGESTS THAT MEN NEED FLEXIBLE SCHEDULES AND UNDERSTANDING BOSSES AS MUCH AS WOMEN IT'S TO EMPLOYERS' BENEFIT TO HELP MEN NURTURE THEIR RELATIONSHIPS AT HOME BECAUSE IT WILL HAVE A DIRECT IMPACT ON THEIR PSYCHOLOGICAL STATE AND HELP THEM SOLVE PROBLEMS AT WORK SHE SAYS GIRLS WHO PLAY SPORTS HAVE A BETTER CHANCE OF SUCCEEDING IN BUSINESS BECAUSE THEY LEARN TEAMWORK COOPERATION AND RISKTAKING WORKING MOTHER MAGAZINE SAYS LEARNING TO LOSE GRACEFULLY AND BRUSH OFF DISAPPOINTMENT ARE VALUABLE SKILLS IN CORPORATE LIFE THE MAGAZINE SAYS A TYPICAL DAY IN CHILD CARE INCLUDES WATCHING TELEVISION ACCORDING TO 69 OF 214 CHILDCARE CENTERS SURVEYED BY PUBLIC BROADCASTING SERVICE AND STATISTICAL RESEARCH PARENTS CAN STOP WONDERING WHETHER THEIR CHILDREN ARE WATCHING TV AT THE CHILDCARE CENTER AND ASK INSTEAD HOW TV IS BEING USED A PBS EXECUTIVE SAYS PBS PROGRAMS ARE SHOWN NEARLY TWICE AS OFTEN AS OTHERS ESPECIALLY SESAME STREET AND BARNEY & FRIENDS 9401050001 940105 MCA TO BUILD PARK IN JAPAN FEATURING FILMS OSAKA OFFICIALS SAY VENTURE BY UNIT OF MATSUSHITA WOULD OPEN IN 1999 BY WALL STREET JOURNAL REPORTERS RICHARD TURNER IN LOS ANGELES AND DAVID P HAMILTON IN TOKYO MCA INC PLANS TO DEVELOP AND HELP OPERATE A UNIVERSAL STUDIOS JAPAN THEME PARK IN OSAKA COSTING BETWEEN 1 BILLION AND 2 BILLION AND SLATED TO OPEN IN THE SPRING OF 1999 OSAKA CITY OFFICIALS SAID THE PARK WHICH WOULD BE SIMILAR TO MCA'S MOVIETHEMED VENTURES IN SOUTHERN CALIFORNIA AND FLORIDA WOULD BE OWNED BY A COLLECTION OF JAPANESE LANDOWNERS AND CORPORATIONS INCLUDING THE CITY OF OSAKA AND MCA'S PARENT MATSUSHITA ELECTRIC INDUSTRIAL CO WHICH IS BASED IN OSAKA MCA WOULD BE AN EQUITY INVESTOR IN THE PARK AND AS SUCH WOULD PARTICIPATE IN THE PARK'S MANAGEMENT IN RETURN FOR FEES INDIVIDUALS CLOSE TO THE DEAL SAID THE SAME PEOPLE SAID REGULATORY PROBLEMS AREN'T ANTICIPATED BECAUSE THE CITY GOVERNMENT OF OSAKA IS DEEPLY INVOLVED IN THE PROJECT AFTER YEARLONG NEGOTIATIONS THE CITY HAS AGREED TO HELP PURCHASE LAND FOR THE PARK ALTHOUGH CITY OFFICIALS WOULDN'T GIVE EXACT DETAILS OF THEIR PLANS UNTIL THE OFFICIAL ANNOUNCEMENT LATE WEDNESDAY IN OSAKA MCA AND MATSUSHITA DECLINED TO COMMENT ON THE NEW THEME PARK THE NEW PARK WILL BE MCA'S FIRST ATTEMPT TO CAPITALIZE ON THE JAPANESE MANIA FOR THEME PARKS THE NATION IS DOTTED WITH ATTRACTIONS RANGING FROM VIDEOGAMERELATED VIRTUAL REALITY PARKS TO INDOOR SKIING ARENAS GOLF COURSES AND EVEN INDOOR BEACHES WALT DISNEY CO PUT ITS CHIPS DOWN EVEN EARLIER IN CONTRAST TO THAT COMPANY'S DISASTER WITH EURO DISNEY TOKYO DISNEYLAND HAS BEEN A MAJOR SUCCESS IN ITS 10 YEARS OF OPERATION MCA'S PARK WOULD BE ABOUT A THREEHOUR TRAIN RIDE FROM TOKYO AND SO WOULDN'T COMPETE DIRECTLY WITH TOKYO DISNEYLAND WHICH IS OWNED AND OPERATED BY ORIENTAL LAND CO AND FROM WHICH DISNEY COLLECTS A ROYALTY ABOUT 30 MILLION PEOPLE LIVE WITHIN AN HOUR'S DRIVE OF OSAKA AND A MAJOR INTERNATIONAL AIRPORT IS SCHEDULED TO OPEN THERE THIS YEAR IT WASN'T KNOWN WHETHER RANK ORGANISATION PLC WHICH OWNS 50 OF UNIVERSAL STUDIOS FLORIDA WOULD PARTICIPATE IN THIS PARK THE BRITISH ENTERTAINMENT COMPANY'S FINANCIAL BACKING WOULDN'T BE NEEDED BUT MCA WAS EXPECTED TO BE RELUCTANT TO TURN ITS BACK ON ITS LONGTIME THEMEPARK PARTNER FORTUITOUSLY FOR MCA JAPANESE MOVIEGOERS HAVE DEMONSTRATED A HUGE APPETITE FOR UNIVERSAL MOVIES WHICH COULD BE FEATURED IN THE PARK WHEN JURASSIC PARK BECAME THE HIGHESTGROSSING FILM IN JAPANESE HISTORY IT SURPASSED A RECORD HELD BY UNIVERSAL'S ET THE EXTRATERRESTIAL UNIVERSAL'S BACK TO THE FUTURE SERIES WAS ALSO VERY POPULAR AND A THRILL RIDE BASED ON THE FILMS IS THE TOP ATTRACTION AT UNIVERSAL STUDIOS FLORIDA AND UNIVERSAL STUDIOS HOLLYWOOD LAST FALL WHEN THE COMPANY ANNOUNCED A MULTIBILLIONDOLLAR EXPANSION IN FLORIDA IT WAS PERCEIVED AS A SIGNAL THAT PLANS IN EUROPE AND JAPAN HAD BEEN PUT ON HOLD THE SORRY STATE OF THE JAPANESE ECONOMY SEEMED TO MAKE A MAJOR UNDERTAKING EVEN LESS LIKELY THERE ALSO HAVE BEEN PERSISTENT REPORTS THAT MATSUSHITA MIGHT SELL ALL OR PART OF MCA 9401040178 940104 SAUDI ARABIA TO CUT '94 OUTLAYS 19 AMID SOFT OIL REVENUE RIYAL PRESERVED SPECIAL TO THE WALL STREET JOURNAL MANAMA BAHRAIN FACED WITH WEAK OIL REVENUE SAUDI ARABIA'S RULER KING FAHD ANNOUNCED THE KINGDOM IS TO SLASH EXPENDITURES 19 IN 1994 AND AT THE SAME TIME DECLARED THE RIYAL WOULDN'T BE DEVALUED SAUDI FINANCIAL MARKETS REACTED BULLISHLY TO THE COMBINATION OF NEWS OVER THE WEEKEND INTEREST RATES FELL AND THE RIYAL MOVED HIGHER SAUDI DEALERS SAID HOWEVER ECONOMISTS NOTED THAT MAJOR DETAILS OF THE BUDGET REMAIN UNCLEAR THE GOVERNMENT DIDN'T DISCLOSE ITS PROJECTED REVENUE FOR 1994 AND DIDN'T CLEARLY STATE WHETHER GOVERNMENT FINANCES WOULD BE IN DEFICIT THE GOVERNMENT ALSO DIDN'T SAY WHERE SPENDING CUTS WOULD BE MADE ALL IN ALL THOUGH THEY SHOULD BE GIVEN CREDIT SAID A SAUDI ARABIABASED ECONOMIST THEY HAVE BITTEN THE BULLET BY CUTTING EXPENDITURE KING FAHD HAD SAID THAT THE GOVERNMENT PLANNED TO CUT EXPENDITURES IN 1994 TO 160 BILLION RIYALS 426 BILLION FROM 19695 BILLION RIYALS PROJECTED IN 1993 THERE WASN'T ANY INDICATION ON INCOME FOR 1994 OTHER THAN THE FACT THAT OIL INCOME IS GENERALLY ABOUT 75 OF TOTAL REVENUE IN LAST YEAR'S BUDGET THE GOVERNMENT PROJECTED REVENUE OF 16915 BILLION RIYALS AND A DEFICIT OF 2780 BILLION IN A TELEVISED STATEMENT LATE SATURDAY KING FAHD SAID IT'S IMPORTANT THAT WE MAINTAIN THE STRENGTH OF OUR ECONOMY WITHIN AVAILABLE FINANCIAL MEANS IN 1994 HE SAID THIS INCLUDES PRESERVING THE VALUE OF THE RIYAL WITHOUT ANY AMENDMENT SOMETHING WHICH I WANT TO AFFIRM ON THIS OCCASION THE KING SAID THE DECLINE IN SPENDING WOULD HELP OFFSET THE REDUCED REVENUE FOLLOWING THE DROP IN OIL PRICES HE ADDED THOUGH THAT OIL PRICES MIGHT CLIMB IN THE NOTTOODISTANT FUTURE IF OIL PRODUCERS RALLY AROUND OMAN'S CALL FOR WORLDWIDE CUTBACKS IN OUTPUT THE INTERNATIONAL MONETARY FUND AND MAJOR LENDING BANKS HAVE GROWN INCREASINGLY UNEASY IN RECENT YEARS THAT SAUDI ARABIA'S BUDGET DEFICIT AND ITS 20 BILLION TRADE DEFICIT AREN'T SUSTAINABLE OVER THE REST OF THE DECADE THESE WORRIES HIGHLIGHTED BY A SERIES OF WESTERN MEDIA REPORTS SINCE THE MIDDLE OF 1993 HAVE PROMPTED SPECULATION THAT THE RIYAL WILL HAVE TO BE DEVALUED TO BOOST LOCAL REVENUES BUT ECONOMISTS AND OTHER FINANCIAL SOURCES SAID THE KING'S COMMENTS OVER THE WEEKEND CLEARLY STRESSED FOR THE FIRST TIME THE NEED FOR SAUDI ARABIA TO SHOW FISCAL RESTRAINT ONE ECONOMIST SAID HE DESERVES CREDIT FOR THAT THIS IS A KING WHO HASN'T EVER SAID THIS IS SOMETHING WE' MUST DO THE KING'S STATEMENT DIDN'T REVEAL EXACTLY WHERE THE CUTS IN EXPENDITURES WOULD BE MADE DEFENSE AND NATIONAL SECURITY SPENDING WAS THE BIGGEST EXPENSE IN 1993'S BUDGET AT 31 BUT A BREAKDOWN WASN'T MADE FOR 1994 THE BUDGET PRESENTATION CHANGES EVERY YEAR SAID ONE FINANCIAL SOURCE THE ONLY REFERENCE TO A DEFICIT IN THE STATEMENT WAS IN A ROYAL DECREE IT SAID THAT THE BUDGET FOR MUNICIPALITIES SETS EXPENDITURES AT 527 BILLION RIYALS AND REVENUE AT 773 MILLION RIYALS LEAVING A DEFICIT OF 449 BILLION RIYALS SOME FINANCIAL AUTHORITIES SPECULATED THAT THE OVERALL BUDGET DEFICIT WAS THEREFORE 449 BILLION RIYALS HOWEVER OTHER EXPERTS SAID THEY WOULD EXPECT A DEEPER DEFICIT IN 1994 DESPITE THE LACK OF BUDGET DETAIL RIYAL BULLS WERE HEARTENED BY THE CUT IN SPENDING AND THE KING'S BACKING FOR THE RIYAL SAUDI RIYAL DEPOSIT RATES FELL AS MUCH AS 150 BASIS POINTS AS A RIYAL DEVALUATION SEEMED MORE DISTANT THE SPOT VALUE OF THE RIYAL FIRMED SLIGHTLY BY THE END OF TRADING TO 37510 RIYALS TO THE DOLLAR FROM 37520 RIYALS SATURDAY AHEAD OF THE BUDGET SAUDI BANKERS SAID THEY NOW STRONGLY DOUBTED A DEVALUATION OF THE RIYAL WOULD TAKE PLACE SINCE 1986 IT HAS BEEN PEGGED TO THE DOLLAR AT 37500 RIYALS 9401040177 940104 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED DEC 31 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER GULF COAST WASTE DISPOSAL AUTHORITY WILL REDEEM ON FEB 1 1994 330000 PRINCIPAL AMOUNT OF ITS 6 POLLUTION CONTROL REVENUE BONDS 1977 SERIES A DUE FEB 1 2007 TEXAS COMMERCE BANK HOUSTON IS TRUSTEE LOS ANGELES HOUSING AUTHORITY WILL REDEEM ON FEB 1 1994 110000 PRINCIPAL AMOUNT OF ITS 8 HOUSING DEVELOPMENT REVENUE BONDS SERIES 1977 DUE FEB 1 2009 BANK OF AMERICA CALIF IS TRUSTEE MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON FEB 1 1994 500000 PRINCIPAL AMOUNT OF ITS 925 49200000 REVENUE BONDS SERIES A DUE AUG 1 2000 SHAWMUT BANK IS TRUSTEE NEW JERSEY EXPRESSWAY AUTHORITY WILL REDEEM ON FEB 1 1994 ITS 475 TERM ATLANTIC CITY EXPRESSWAY REVENUE BONDS SERIES A DUE DEC 1 2002 AND ITS 425 TERM ATLANTIC CITY EXPRESSWAY REVENUE BONDS SERIES B DUE DEC 1 2003 FIRST FIDELITY BANK NEW JERSEY PHILADELPHIA IS TRUSTEE SAN BUENAVENTURA WILL REDEEM ON FEB 1 1994 125000 PRINCIPAL AMOUNT OF ITS 540 1969 WATER REVENUE BONDS DUE FEB 1 1999 THE CITY WILL ALSO REDEEM 90000 PRINCIPAL AMOUNT OF ITS 550 1970 WATER REVENUE BONDS SERIES B DUE FEB 1 2002 BANK OF AMERICA CALIF AND BANKAMERICA TRUST CO OF NEW YORK ARE REDEMPTION AGENTS VALDEZ ALASKA WILL REDEEM ON JAN 31 1994 ITS 60 MARINE TERMINAL REVENUE BONDS SERIES A DUE JULY 1 2007 BANKERS TRUST CO NEW YORK IS SUCCESSOR TRUSTEE 9401040176 940104 INTERNATIONAL SYRIA ENJOYS ECONOMIC BOOM BOOSTED BY FREEDOM ALLOWED UNDER LAW NO 10 BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL DAMASCUS SYRIA IN A NEW 12 MILLION FACTORY A HUGE COMPUTERDIRECTED MACHINE CHURNS OUT NEARLY 10000 POUNDS OF SYNTHETIC FIBER A DAY THE FIBER IS USED IN PRODUCTS RANGING FROM FURNITURE LINING TO INSULATING MATERIAL TO FILTERS AND THE PRODUCTS ARE SOLD HERE FOR HALF THE PRICE OF SIMILAR IMPORTED GOODS WE COULDN'T HAVE DONE ANY OF THIS WITHOUT LAW NO 10 SAYS BASSEL DAKKAK ONE OF THE FACTORY'S OWNERS STANDING IN THE MIDST OF THE 150000 SQUAREFOOT FACILITY ON THE OUTSKIRTS OF DAMASCUS LAW NO 10 PASSED IN MAY 1991 IS TOUTED BY SYRIANS AS A GIANT STEP TOWARD OPENING THE STATECONTROLLED ECONOMY TO THE PRIVATE SECTOR AND FOREIGN INVESTMENT IT'S ONE OF MANY CHANGES MADE SINCE THE COLLAPSE OF SYRIA'S MAJOR ECONOMIC PARTNER AND BENEFACTOR THE SOVIET UNION IT EXEMPTS INVESTORS IN APPROVED PROJECTS FROM TAXES FOR FIVE TO NINE YEARS WAIVES CUSTOMS DUTIES ON CERTAIN IMPORTS AND REMOVES SOME REGULATORY SNARLS THAT CAN TURN DOING BUSINESS INTO A NIGHTMARE IT IS TOO SOON HOWEVER TO TELL IF LAW NO 10 IS THE HARBINGER OF MAJOR CHANGE AS OFFICIALS PROMISE OR JUST A BONE THROWN BY PRESIDENT HAFEZ AL ASSAD SYRIA'S AUTHORITARIAN RULER TO INFLUENTIAL FRIENDS AND THE GROWING BUSINESS CLASS WHAT IS CLEAR IS THAT SYRIA IS EXPERIENCING AN ECONOMIC BOOM AFTER SEVERAL LEAN YEARS OF BAD CROPS FOREIGNEXCHANGE SHORTAGES AND THE SHOCK CAUSED BY THE DEMISE OF THE COUNTRY'S SUPERPOWER PATRON ACCORDING TO US OFFICIALS SYRIA'S ECONOMY HAS GROWN 7 TO 8 ANNUALLY SINCE 1990 OIL PRODUCTION HAS JUMPED TO 580000 BARRELS A DAY FROM 150000 IN THE MID 1980S WITH HALF THE TOTAL EXPORTED FOR HARD CURRENCY AGRICULTURAL PRODUCTION IS UP SO SHARPLY THAT WHEAT FILLING ALL AVAILABLE SILO SPACE IS PILED HIGH ALONG SOME COUNTRY ROADS WITH THE HINT OF MIDDLE EAST PEACE IN THE AIR SYRIA IS CAUTIOUSLY OPENING TO THE WEST INTERNATIONAL TELEPHONE SERVICE IN DAMASCUS FOR EXAMPLE IS VASTLY IMPROVED FROM JUST A YEAR AGO AFTER FIERCE GOVERNMENT RESISTANCE FAX MACHINES ARE NOW PERMITTED ALTHOUGH A LICENSE IS REQUIRED AND EL BALLA HAGONA DEPUTY RESIDENT REPRESENTATIVE OF THE UNITED NATIONS DEVELOPMENT PROGRAM HERE SAYS WE NOW CAN DEAL DIRECTLY WITH SYRIAN CHAMBERS OF COMMERCE THAT USED TO BE TABOO THE REGIME'S CENTRAL CONTROL DIDN'T ALLOW IT LAW NO 10 IS DESIGNED TO SUSTAIN THIS PROGRESS NOW OUR GOAL IS TO RETAIN THE CAPITAL THAT USED TO GO OUTSIDE PEOPLE ARE DISCOVERING THAT PROFIT MARGINS ARE HIGHER HERE THAN IN INVESTMENT OPPORTUNITIES ABROAD SAYS MOHAMMAD IMADY SYRIA'S URBANE USEDUCATED MINISTER OF ECONOMY AND FOREIGN TRADE WHO IS A CHAMPION OF ECONOMIC REFORM BUT CHANGE WON'T COME EASILY BUREAUCRATS AND IDEOLOGICAL STALWARTS IN PRESIDENT ASSAD'S TIGHTLY CONTROLLED REGIME WILL FIGHT TO LIMIT HOW MUCH ECONOMIC FREEDOM SYRIA ENJOYS THE COUNTRY BATTLING DAILY ELECTRIC POWER OUTAGES AND CHRONIC WATER SHORTAGES LACKS THE INFRASTRUCTURE TO ATTRACT MAJOR FOREIGN INVESTMENT AND MANY WEALTHY SYRIANS WHO LEFT IN THE 1960S WHEN THEIR PROPERTY WAS NATIONALIZED MAY NOT YET HAVE THE CONFIDENCE TO RETURN WITH THEIR MONEY IN THE BATTLE TO MODERNIZE SYRIA STRUGGLES WITH ITSELF UNDER LAW NO 10 FOR INSTANCE CERTAIN BUSINESSES MAY NOW IMPORT AUTOS DUTYFREE THIS FREEDOM HAS PRODUCED A PROFUSION OF 511 RENTACAR COMPANIES ACCORDING TO THE LATEST COUNT FROM THE DAMASCUS CHAMBER OF COMMERCE STREETS ARE FILLED WITH WHITE TOYOTA AND MAZDA MINIVANS WHICH FORM A PRIVATESECTOR FLEET THAT SUPPLEMENTS DAMASCUS'S INADEQUATE PUBLIC TRANSPORTATION SYSTEM THE LAW ALSO PROVIDES A GIANT LOOPHOLE FOR THE AFFLUENT THEY SET UP RENTACAR COMPANIES TO IMPORT DUTYFREE LUXURY CARS FOR THEMSELVES AND THEIR FRIENDS SYRIA NEEDS A MAJOR OVERHAUL TO ATTRACT TOURISTS TO VIEW THE COUNTRY'S RICH ARCHEOLOGICAL SITES LEAVING BEHIND HARD CURRENCY SAYS SAEB NAHAS ONE OF SYRIA'S WEALTHIEST BUSINESSMEN WHO CONTROLS 26 COMPANIES STATEOWNED SYRIA AIRLINES HAS THESE BLOODY SOVIET AIRCRAFT THEY HAVE TO BE REPLACED MR NAHAS SAYS HE CALLS FOR LIFTING THE GOVERNMENT AIRLINE'S MONOPOLY ON DAMASCUS AIRPORT THEY ARE COVERING THEIR LOSSES BY OVERCHARGING FOREIGN CARRIERS ON LANDING FEES SO THE CARRIERS AVOID DAMASCUS AIRPORT AND GO TO THE PERSIAN GULF INSTEAD HE COMPLAINS OTHER EXECUTIVES GROUSE ABOUT GOVERNMENT INTERFERENCE ONE YOUNG ENTREPRENEUR SAYS THAT OBTAINING A LETTER OF CREDIT FROM SYRIA'S STATE BANK CAN TAKE TWO TO THREE WEEKS WITH A 3 COMMISSION GOING TO THE BANK BY CONTRAST HE SAYS EUROPEAN BANKS ELECTRONICALLY PRODUCE LETTERS OF CREDIT IN 24 HOURS AND CHARGE ONLY ABOUT 1 ANOTHER EXECUTIVE SAYS THAT SYRIAN RED TAPE REQUIRES THAT AN OFFICIAL STAMP BE AFFIXED TO EVERY CONTRACT AND OTHER BUSINESS DOCUMENTS THAT GIVES THEM THE EXCUSE TO COME BY AND LOOK AT YOUR FILES HE SAYS SYRIA MUST OVERCOME DECADES OF DEALING WITH THE SOVIETS MANY SYRIAN BUSINESSES PARTICULARLY COSMETICS AND TEXTILE FIRMS WERE SET UP SOLELY TO SELL THEIR OUTPUT TO THE SOVIETS TO HELP PAY OFF DEBT THAT WAS INCURRED PURCHASING ARMS SCANT THOUGHT WAS GIVEN TO THE QUALITY OF THESE GOODS AS A RESULT SAYS THE UN'S MR HAGONA MANY SYRIAN BUSINESS EXECUTIVES LACK NECESSARY MARKETING SKILLS AND AWARENESS OF QUALITY CONTROL TO COMPETE IN WESTERN MARKETS EVEN AS THESE EXECUTIVES GROW INCREASINGLY AWARE OF THE NEED TO TURN OUTWARD DESPITE THESE PROBLEMS HOWEVER AN UPBEAT MOOD PERVADES WITH MORE FREEDOM TO MAKE ECONOMIC DECISIONS AMIDST A FEELING THAT PEACE IS INEVITABLE BUSINESS LEADERS BELIEVE OPPORTUNITY BECKONS WATER IS THE NATURAL ENVIRONMENT FOR FISH AND PEACE AND STABILITY ARE THE NATURAL ENVIRONMENTS FOR BUSINESS SAYS HISBAN ALHAMWY GENERAL DIRECTOR OF THE DAMASCUS CHAMBER OF COMMERCE 9401040175 940104 INVESTORS GOBBLED FOREIGN STOCKS BONDS IN THIRD QUARTER OF '93 NEW YORK US INVESTORS SWARMED INTO OVERSEAS STOCK AND BOND MARKETS IN RECORD NUMBERS IN THE THIRD QUARTER OF 1993 ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION US INVESTORS BOUGHT A RECORD NET 251 BILLION IN FOREIGN STOCKS IN THE QUARTER AND 214 BILLION IN OVERSEAS CORPORATE AND GOVERNMENT BONDS THE COMBINED FIGURE OF 465 BILLION IN US INVESTORS' PURCHASES OF FOREIGN SECURITIES SURPASSES THE PREVIOUS HIGH OF 274 BILLION IN THE FIRST QUARTER OF 1993 THROUGH THE FIRST NINE MONTHS OF 1993 US NET PURCHASES OF FOREIGN STOCKS AND BONDS EXCEEDED 99 BILLION NEARLY DOUBLE THE 52 BILLION IN 1992 THE APPETITE FOR FOREIGN SECURITIES IN 1993 HAS LEFT LITTLE DOUBT THAT THE US INVESTOR UNDERSTANDS THE CONCEPT OF GLOBAL ECONOMIES AND CAPITAL MARKETS WHICH INCREASINGLY REQUIRES INVESTMENT STRATEGIES REFLECTIVE OF THIS REALITY SAID DAVID G STRONGIN DIRECTOR OF INTERNATIONAL FINANCE AT SIA AMERICAN INVESTORS GOBBLED UP STOCKS IN BOTH DEVELOPED MARKETS AND EMERGING COUNTRIES US NET PURCHASES OF STOCKS WITHIN THE EUROPEAN UNION JUMPED TO 126 BILLION IN THE THIRD QUARTER FROM 68 BILLION IN THE SECOND QUARTER PURCHASES OF UK STOCKS LED US INVESTMENT IN THE REGION TOTALING A RECORD 79 BILLION COMPARED WITH 51 BILLION SET IN THE FOURTH QUARTER OF 1992 AMERICAN INVESTORS BOUGHT A RECORD 11 BILLION IN FRENCH SHARES COMPARED WITH 692 MILLION IN THE SECOND QUARTER OF 1991 NET PURCHASES OF GERMAN STOCKS TOTALED A RECORD 17 BILLION COMPARED WITH THE PREVIOUS HIGH OF 903 MILLION IN THE FIRST QUARTER OF 1990 AMERICAN INVESTORS ALSO BOUGHT A RECORD NET 19 BILLION IN HONG KONG STOCKS IN THE THIRD QUARTER COMPARED WITH 957 MILLION IN THE FIRST QUARTER OF 1992 PURCHASES OF SINGAPORE STOCKS ALSO HIT A HIGH TOTALING 504 MILLION COMPARED WITH 395 MILLION IN THE SECOND QUARTER LATIN AMERICA ACCOUNTED FOR MORE THAN 48 BILLION IN US OVERSEAS STOCK INVESTMENTS 9401040174 940104 ADVANTAGE INTERNATIONAL INC WASHINGTON ADVANTAGE INTERNATIONAL INC ACQUIRED STRATEGIC GROUP AN ATLANTA SPORTS AND EVENT MARKETING FIRM TERMS WERE NOT DISCLOSED ADVANTAGE INTERNATIONAL SAID STRATEGIC GROUP'S 22PERSON OFFICE BECAME ITS ATLANTA BASE OF OPERATIONS EFFECTIVE JAN 1 9401040173 940104 WHEATLEY COMPLETES PURCHASE HOUSTON WHEATLEY TXT CORP SAID IT COMPLETED THE ACQUISITION OF AXELSON INC AN OILFIELD EQUIPMENT MAKER FROM HANSON PLC FOR 80 MILLION WHEATLEY ALSO AN OILFIELD SERVICES COMPANY SAID IT FINANCED THE ACQUISITION WITH A 12 MILLION NOTE THAT MATURES IN 1999 AND 68 MILLION OF BORROWINGS UNDER A NEW BANK LOAN FACILITY HANSON IS A BRITISHAMERICAN INDUSTRIAL MANAGEMENT CORPORATION 9401040172 940104 VENEZUELA'S INFLATION CLIMBS CARACAS VENEZUELA INFLATION IN VENEZUELA CLIMBED 36 IN DECEMBER BRINGING TOTAL INFLATION FOR THE YEAR TO 459 ACCORDING TO FIGURES RELEASED MONDAY BY THE CENTRAL BANK THE INCREASE WAS IDENTICAL TO NOVEMBER THE BANK ESTIMATED THAT AN INDIRECT VALUE ADDED TAX INTRODUCED OCT 1 CONTRIBUTED 04 PERCENTAGE POINT TO THE INCREASE COMPARED WITH 06 PERCENTAGE POINT IN NOVEMBER 9401040171 940104 EASTMAN CHEMICAL JOINS INDEX NEW YORK EASTMAN CHEMICAL CO WHICH WAS SPUN OFF FROM EASTMAN KODAK CO IS BEING ADDED TO THE SPECIALTY CHEMICALS INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY 9401040170 940104 PUROLATOR REVISES LOAN PACT TULSA OKLA PUROLATOR PRODUCTS CO SAID A GROUP OF BANKS AGREED TO EXPAND THE COMPANY'S REVOLVING CREDIT AND TERM LOAN AGREEMENT TO 967 MILLION A 20 MILLION INCREASE THE FILTER COMPANY SAID THE ACCORD ALLOWS PART OF THE MONEY TO BE USED FOR ACQUISITIONS THE COMPANY WOULDN'T SPECIFY WHAT ACQUISITIONS ARE BEING CONSIDERED BUT SAID ANY OPERATIONS ACQUIRED WOULD BE IN THE FILTRATION BUSINESS PUROLATOR SAID THE REVISED AGREEMENT WILL REDUCE THE COMPANY'S COSTS AND GIVES IT MORE FLEXIBILITY 9401040169 940104 FARAH ENTERS LICENSE PACTS EL PASO TEXAS FARAH INC ENTERED INTO LICENSE AGREEMENTS WITH OXFORD INDUSTRIES INC THAT ALLOW OXFORD'S SHIRTINGS DIVISION TO LICENSE THE SAVANE AND PROCESS 2000 NAMES FOR SHIRT SALES FARAH SAID THAT UNDER TERMS OF THE AGREEMENT IT WILL FURNISH OXFORD WITH ITS PROPRIETARY PROCESS 2000 NOWRINKLE TECHNOLOGY FOR USE ON SHIRTS FARAH SAID IT PLANS TO INTRODUCE A SMALL NUMBER OF SHIRTS FOR THE FATHER'S DAY SELLING PERIOD AND A LARGER VOLUME IN THE SECOND HALF OF THE YEAR 9401040168 940104 CONCORD CAMERA'S CREDIT LINE AVENEL NJ CONCORD CAMERA CORP SAID IT SECURED A LOAN COMMITMENT FROM CIT GROUP FOR A TWOYEAR 10 MILLION CREDIT FACILITY THE COMPANY SAID THE CLOSING OF THE FACILITY IS SUBJECT TO CERTAIN CONDITIONS INCLUDING NEGOTIATION OF A DEFINITIVE AGREEMENT CONCORD ALSO SAID ITS CURRENT CREDIT FACILITY WITH MIDLANTIC BANK HAS BEEN EXTENDED TO MARCH 31 IT WAS SCHEDULED TO EXPIRE DEC 31 9401040167 940104 NORWEST COMPLETES PURCHASE MINNEAPOLIS NORWEST CORP COMPLETED THE ACQUISITION OF ST CLOUD NATIONAL BANK & TRUST TERMS WEREN'T DISCLOSED THE COMPANY SAID IT PLANS TO MERGE ST CLOUD NATIONAL WITH ITS NORWEST BANK MINNESOTA CENTRAL UNIT IN THE SPRING 9401040166 940104 EVANS & SUTHERLAND COMPUTER SALT LAKE CITY EVANS & SUTHERLAND COMPUTER CORP RECEIVED ORDERS VALUED AT MORE THAN 2 MILLION FROM FORD MOTOR CO FOR CONCEPTUAL DESIGN AND SYSTEM SOFTWARE LICENSES AND DEVELOPMENT CONTRACTS IN A NEWS RELEASE EVANS & SUTHERLAND SAID COPIES OF THE SOFTWARE WILL BE INSTALLED AT FOUR FORD LOCATIONS IN THE US AND EUROPE 9401040165 940104 IOMEGA CUTS WORKFORCE ROY UTAH IOMEGA CORP SAID IT LAID OFF 50 PEOPLE ABOUT 8 OF ITS WORK FORCE IN AN EFFORT TO CUT COSTS LAST YEAR THE DISK DRIVE MAKER HURT BY FIERCE PRICE WARS IN THE INDUSTRY AND DECLINING MARGINS SHED 143 JOBS TO TRIM EXPENSES 9401040164 940104 UPJOHN COMPLETES DIVESTITURE KALAMAZOO MICH UPJOHN CO SAID IT COMPLETED THE DIVESTITURE OF CERTAIN ASSETS OF ITS ASGROW FLORIDA CO UNIT TO TERRA INDUSTRIES INC SIOUX CITY IOWA FOR 31 MILLION UPJOHN A PHARMACEUTICAL CONCERN EXPECTS TO REALIZE A GAIN FROM THE TRANSACTION FOR THE YEAR ENDED DEC 31 1993 9401040163 940104 PERMAFIX COMPLETES PURCHASE ATLANTA PERMAFIX ENVIRONMENTAL SERVICES INC COMPLETED ITS ACQUISITION OF AMERICAN RESOURCE RECOVERY CORP IN A NEWS RELEASE PERMAFIX ENVIRONMENTAL SAID IT ISSUED 601500 COMMON SHARES IN EXCHANGE FOR THE COMPANY 9401040162 940104 ALLIED PRODUCTS COMPLETES SALE CHICAGO ALLIED PRODUCTS CORP COMPLETED THE SALE OF ITS WHITENEW IDEA FARM EQUIPMENT UNIT TO AGCO CORP IN A CASH TRANSACTION ALLIED PRODUCTS SAID IT USED PART OF THE 53 MILLION INITIAL PROCEEDS FROM THE SALE TO RETIRE ALL ITS SENIOR SECURED DEBT THE SALE INVOLVES ESSENTIALLY ALL OF THE UNIT'S ASSETS INCLUDING RECEIVABLES INVENTORIES AND FACILITIES IN OHIO AND ILLINOIS AND ITS LEASES ON SEVERAL WAREHOUSES IN THE US AND CANADA ALLIED PRODUCTS SAID WHITENEW IDEA FARM OF COLDWATER OHIO MAKES AGRICULTURAL IMPLEMENTS AND TILLAGE EQUIPMENT 9401040161 940104 STONE & WEBSTER UNIT GETS JOB DENVER STONE & WEBSTER ENGINEERING CORP A UNIT OF STONE & WEBSTER INC SAID IT WILL MANAGE CONSTRUCTION OF A 36 MILLION HYDROELECTRIC FACILITY FOR THE CITY OF COLORADO SPRINGS COLO IN A NEWS RELEASE THE COMPANY SAID IT WILL PROVIDE ENGINEERING FOR A POWER PLANT THAT WILL INTERCEPT WATER FROM A RESERVOIR WHICH CURRENTLY FEEDS A WATERTREATMENT PLANT THE TURBINES WILL SERVE AS AN ENERGY DISSIPATOR AND GENERATE 25 MEGAWATTS OF POWER FOR THE CITY THE COMPANY ADDED THAT IT ALSO WILL PROVIDE DESIGN PROCUREMENT AND STARTUP ASSISTANCE 9401040160 940104 APERTUS TECHNOLOGIES INC MINNEAPOLIS APERTUS TECHNOLOGIES INC SAID IT ACQUIRED SYSTEMS STRATEGIES INC A COMMUNICATIONSSOFTWARE UNIT OF NYNEX CORP FOR ABOUT 14 MILLION APERTUS SAID SYSTEMS STRATEGIES' ROUGHLY 15 MILLION IN ANNUAL REVENUE WILL GIVE APERTUS TOTAL REVENUE OF ABOUT 40 MILLION A YEAR SYSTEMS STRATEGIES MAKES SOFTWARE THAT HELPS LINK MAINFRAME COMPUTERS TO NETWORKS OF PERSONAL COMPUTERS 9401040159 940104 BANC ONE ACQUIRES CROGHAN COLUMBUS OHIO BANC ONE CORP SAID IT COMPLETED THE ACQUISITION OF CLOSELY HELD CROGHAN & ASSOCIATES INC OF BOULDER COLO TERMS WEREN'T DISCLOSED CROGHAN IS A DATAPROCESSING CONCERN SPECIALIZING IN THE DEVELOPMENT AND DELIVERY OF MEDICALPAYMENT SERVICES AND RELATED DATAINTERCHANGE SERVICES THE BANK HOLDING COMPANY SAID THE NEWLY ACQUIRED BUSINESS WILL CHANGE ITS NAME TO SYSTEM ONE CORP EFFECTIVE IMMEDIATELY RAYMOND D CROGHAN FOUNDER AND PRESIDENT WILL CONTINUE AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE NEW BANC ONE UNIT FREDERICK L CULLEN BANC ONE'S CHIEF FINANCIAL OFFICER WILL SERVE AS CHAIRMAN OF SYSTEM ONE 9401040157 940104 HORIZON HEALTHCARE REDEMPTION ALBUQUERQUE NM HORIZON HEALTHCARE CORP SAID ITS BOARD APPROVED THE REDEMPTION OF ITS 6 3/4 CONVERTIBLE SUBORDINATED NOTES DUE FEB 1 2002 THE HEALTHCARE COMPANY SAID IT HOPES THE NOTEHOLDERS WILL EXERCISE THEIR RIGHT TO CONVERT THE NOTES INTO HORIZON COMMON STOCK BEFORE THE REDEMPTION DATE WHICH IS THIS FEB 1 THE PRINCIPAL AMOUNT OF THE NOTES IS ALMOST 50 MILLION THE REDEMPTION PRICE IS 1054 OF PRINCIPAL PLUS ACCRUED INTEREST NOTEHOLDERS HOWEVER COULD INSTEAD CONVERT THE NOTES INTO STOCK AT THE RATE OF 12 OF PRINCIPAL AMOUNT OF NOTES FOR EVERY SHARE RECEIVED HORIZON STOCK CLOSED YESTERDAY AT 20375 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WITH CERTAIN DEBENTURES ALREADY CONVERTED AND ASSUMING ALL THE NOTES ARE CONVERTED HORIZON WOULD ISSUE 39 MILLION NEW SHARES LAST THURSDAY HORIZON HAD 16 MILLION SHARES OUTSTANDING 9401040156 940104 DEVON ENERGY TO BUY ALTA OKLAHOMA CITY DEVON ENERGY CORP SAID IT AGREED TO ACQUIRE ANOTHER OIL AND GAS EXPLORATION AND PRODUCTION COMPANY ALTA ENERGY CORP FOR AN UNDISCLOSED SUM FINAL TERMS ARE BEING NEGOTIATED DEVON ENERGY SAID ALTA SHAREHOLDERS WOULD RECEIVE CASH AND DEVON COMMON STOCK SO FAR DEVON SAID IT HAS AGREED TO BUY ALTA COMMON STOCK REPRESENTING 43 OF THE COMPANY'S VOTING RIGHTS IN THE THIRDQUARTER DEVON HAD NET INCOME OF 38 MILLION OR 18 CENTS A SHARE ON REVENUE OF 235 MILLION FOR ITS FISCAL FIRSTQUARTER ENDED SEPT 30 ALTA BASED IN DENVER HAD A LOSS OF 251334 OR EIGHT CENTS A SHARE ON REVENUE OF 48 MILLION 9401040155 940104 LCI INTERNATIONAL GETS CONTRACT MCLEAN VA LCI INTERNATIONAL INC SAID IT WAS SELECTED BY PHOENIXBASED INTERTEL NETSOLUTIONS INC A TELECOMMUNICATIONS DISTRIBUTOR AND REBILLER ORGANIZATION TO PROVIDE DOMESTIC AND INTERNATIONAL VOICE AND DATA SERVICES THE CONTRACT IS VALUED AT 18 MILLION OVER TWO YEARS WITH AN AUTOMATIC ONEYEAR RENEWAL LCI IS A TELECOMMUNICATIONS COMPANY THAT PROVIDES BUSINESS AND RESIDENTIAL CUSTOMERS WITH VOICE DATA AND VIDEOTRANSMISSION SERVICES THROUGH ITS FIBEROPTIC NETWORK 9401040154 940104 BIODENTAL COMPLETES PURCHASE SACRAMENTO CALIF BIODENTAL TECHNOLOGIES CORP SAID IT COMPLETED THE ACQUISITION OF RYKER DENTAL OF KENTUCKY INC IN EXCHANGE FOR 220000 OF ITS RESTRICTED COMMON SHARES THE COMPANY SAID RYKER WHICH SELLS AND DISTRIBUTES DENTAL EQUIPMENT AND SUPPLIES IS EXPECTED TO CONTRIBUTE POSITIVE EARNINGS AND ABOUT 6 MILLION IN ANNUAL REVENUE RYKER WILL PROVIDE BIODENTAL WITH A SECOND DISTRIBUTION CENTER A STRONGER EAST COAST PRESENCE AND MORE LINES OF DENTAL EQUIPMENT AND SUPPLIES 9401040153 940104 BUDAPEST ATTRACTS TOP RECORDING FIRMS COPYRIGHT LAW HELPS HUNGARY SHED BOOTLEGGER IMAGE BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL BUDAPEST THE BUSY DOWNTOWN STREETS HERE JUST AREN'T WHAT THEY USED TO BE AND THE WORLD'S TOP RECORDING COMPANIES COULDN'T BE HAPPIER ABOUT IT ONLY A YEAR AGO VENDORS BRAZENLY SOLD COUNTERFEIT AUDIOCASSETTES IN CROWDED MARKETPLACES AND PEDESTRIAN SHOPPING DISTRICTS OF THE HUNGARIAN CAPITAL BUT NO LONGER OWING TO A TOUGH NEW COPYRIGHT LAW THAT PUNISHES BOOTLEGGERS WITH JAIL TERMS OF AS LONG AS FIVE YEARS BUDAPEST HAS BEEN TRANSFORMED FROM A PIRATER'S PARADISE TO A MECCA FOR MUSIC'S MAJOR RECORD LABELS ALL FIVE MAJORS POLYGRAM SONY BMG EMI AND WARNER MUSIC HAVE SET UP OPERATIONS HERE TO PROMOTE THEIR INTERNATIONAL CATALOGS AND TO LURE HUNGARIAN ARTISTS AWAY FROM THE STATELABEL HUNGAROTON DESPITE A GENERAL RECESSION RETAIL MUSIC SALES IN HUNGARY STILL PREDOMINANTLY CASSETTES ARE EXPECTED TO BE UP ABOUT 20 IN 1993 FROM THE YEAREARLIER'S 30 MILLION A QUICK GLANCE AT A RECENT COMPILATION OF THE TOP 40 ALBUMS SHOWS THE EXTENT OF CHANGES TEEN POPSTER SZANDI MAKES HER DEBUT AS A SONY ARTIST AT NO 13 WHILE RAP GROUP RAPULOK IS NO 1 RECORDING WITH BMG THE MUSIC UNIT OF GERMAN MEDIA GIANT BERTELSMANN AG IT'S A FAR CRY FROM THE NOTSODISTANT DAYS WHEN NEARLY EVERYBODY RECORDED WITH HUNGAROTON THE HUNGARIAN GOVERNMENT RECOGNIZED THE IMPORTANCE OF EFFECTIVE COPYRIGHT PROTECTION NOT ONLY FOR THE ECONOMY BUT ALSO FOR THE INTERNATIONAL IMAGE OF THE COUNTRY SAYS LASZLO HEKIDIS A FORMER MUSIC JOURNALIST AND ROCK PROMOTER WHO OPENED POLYGRAM'S FIRST OFFICE IN BUDAPEST MAY 18 JUST THREE DAYS AFTER THE NEW CRIMINAL COPYRIGHT LAW TOOK EFFECT HUNGARY ISN'T ALONE IN PLACING NEW STRESS ON STRONG INTELLECTUALPROPERTY SAFEGUARDS THROUGHOUT EASTERN EUROPE GOVERNMENTS ARE RECOGNIZING THAT INVESTORS WILL SHY AWAY WITHOUT SUCH PROTECTIONS SO TOUGHER NEW LAWS HAVE BEEN PUT IN PLACE OR PROPOSED FROM BULGARIA TO THE BALTICS POLAND ALSO MAY SOON ADOPT A STRINGENT COPYRIGHT STATUTE AIMED AT ERASING ITS IMAGE AS A TOP BOOTLEGGING CENTER THE MAJOR RECORD COMPANIES ARE PARTICULARLY EAGER FOR SUCH PROTECTIONS IN POLAND BECAUSE IT'S A HUGE MARKET OF 40 MILLION PEOPLE OF WHOM ABOUT TWO MILLION HAVE WHAT A SONY OFFICIAL TERMS WESTERN PURCHASING POWER IT'S ALSO A COUNTRY WITH A RICH MUSICAL TRADITION AND MANY ACCOMPLISHED STUDIO MUSICIANS A CRIMINAL COPYRIGHT BILL WAS PENDING WHEN THE PREVIOUS POLISH PARLIAMENT DISSOLVED LAST SPRING AND THE NEW GOVERNMENT UNDER PRESSURE FROM THE US AND WESTERN EUROPE HAS VOWED TO REVIVE THE MEASURE AS A TOP PRIORITY PIRACY HAS BEEN SEEN AS A WAY OF LIFE IN POLAND SAYS DAVID MAIN LONDONBASED VICE PRESIDENT FOR SONY MUSIC INTERNATIONAL LTD WHAT PERCENTAGE OF THE PRODUCT IN POLAND IS PIRATE PRODUCT THE GLIB ANSWER HAS ALWAYS BEEN 150 99 FOR POLAND AND 51 FOR EXPORT BOOTLEGGING OPERATIONS IN POLAND ARE SO SOPHISTICATED SAYS A RECORDLABEL EXECUTIVE THAT CONSUMERS IN ROMANIA HAVE SOUGHT OUT POLISH PIRATED GOODS BECAUSE THE QUALITY WAS BETTER THAN SOME LEGITIMATE RECORDINGS AT ROMANIAN SHOPS BECAUSE THE CZECH REPUBLIC AND SLOVAKIA HAVE HAD STRONG COPYRIGHT LAWS IN PLACE SINCE THE LATE 1980S HUNGARY HAS ALSO BEEN A PRIME MARKET FOR THOSE ILLEGAL POLISH EXPORTS AND THE OLD HUNGARIAN LAW PROVED LITTLE HELP IN STEMMING THE FLOW THE PREVIOUS LAW CALLED FOR A FINE OF 10000 FORINTS 102 BUT NO JAIL TERM SO STREET VENDORS JUST PAID THE FINE SOMETIMES AND WENT ABOUT THEIR BUSINESS BUT SINCE THE NEW LAW TOOK EFFECT AUTHORITIES HAVE INSTITUTED MORE THAN 200 CRIMINAL PROCEEDINGS ALTHOUGH TRIALS HAVE BEEN SLOW TO GET UNDER WAY AND CONFISCATED SOME 250000 COUNTERFEIT CASSETTES PIRACY STILL EXISTS ESPECIALLY IN RURAL AREAS BUT BOTH GOVERNMENT AND MUSICINDUSTRY OFFICIALS SAY IT'S SUBSTANTIALLY REDUCED RECORD COMPANIES SAY AN ACCEPTABLE PIRACY LEVEL IS ABOUT 15 BECAUSE BELOW THAT IT'S MORE EXPENSIVE TO FIGHT COUNTERFEITING THAN TO LIVE WITH IT WE FELT A CRIMINAL SANCTION WAS BADLY NEEDED SAYS MIHALY FICSOR A SENIOR JUSTICE MINISTRY OFFICIAL CIVIL PROCEEDINGS WERE VERY SLOW SOMETIMES TAKING TWO TO THREE YEARS EVEN TO GET GOING AND IT WAS VERY DIFFICULT TO GET AN INJUNCTION UNDER THE CIVIL LAW BUT CONFISCATING BOOTLEGGED COPIES IS ONLY ONE ELEMENT IN THE HUNGARIAN GAME PLAN FOR THE MUSIC INDUSTRY'S TOP PLAYERS EQUALLY IMPORTANT THE MAJORS SAY IS REMOVING THE DEMAND FOR PIRATED PRODUCTS THROUGH EFFECTIVE MARKETING OF THE REAL THING AND IN THAT AREA THEY ACKNOWLEDGE THERE IS PLENTY OF ROOM FOR IMPROVEMENT THEY ALSO PLAN TO STUDY ANY MISTAKES MADE IN HUNGARY IN DISTRIBUTION DISPLAY AND ADVERTISING TO AVOID REPEATING THEM IN POLAND AND ELSEWHERE IN EASTERN EUROPE THE REAL PRODUCT MUST BE AVAILABLE EASILY AT AN AFFORDABLE PRICE AND AT THE SAME TIME AS IT'S AVAILABLE IN THE WEST SAYS MALCOLM CARRUTHERS MANAGING DIRECTOR FOR SONY IN HUNGARY THE STATEOWNED DISTRIBUTION SYSTEM WENT BANKRUPT NOT LONG AFTER COMMUNISM'S COLLAPSE IT WAS REPLACED BY SELFAPPOINTED AGENTS WHO SOLD FROM THEIR CARS ON A CASHONLY BASIS THE MAJOR LABELS ARE NOW BUILDING UP THEIR OWN DISTRIBUTION SYSTEMS BUT THEY'RE STILL IN THEIR INFANCY POLYGRAM FOR EXAMPLE EMPLOYS JUST SEVEN SALES AGENTS AND FIVE TRUCK DRIVERS EVEN WITH EFFECTIVE DISTRIBUTION THE MUSIC INDUSTRY IN HUNGARY FACES A RETAILING SYSTEM WHOSE TRANSITION FROM A STATEPLANNED ECONOMY HAS BEEN HAPHAZARD AT BEST RECORD STORES ARE DOWDY AND DISORGANIZED FRANK SINATRA MIGHT SHARE A BIN WITH LOCAL ROCK BAND EDDA STORE EMPLOYEES AREN'T GENERALLY KNOWLEDGEABLE INSTORE DISPLAYS ARE PRACTICALLY NONEXISTENT AND SYSTEMS FOR ENSURING ENOUGH STOCK OF POPULAR RELEASES ARE INADEQUATE THE PRIVATIZATION OF STATE BOOKSHOPS AND RECORD STORES WENT TERRIBLY SAYS MR HEKIDIS VIEWING A PROMOTIONAL VIDEO FOR A NEW POLYGRAM ALBUM BY CHERRY A HUNGARIAN BAND USUALLY A LOCAL PUB OWNER OR LOCAL RICH GUY TOOK OVER THOSE SHOPS AND THE PEOPLE WORKING THERE HAVE VERY LITTLE UNDERSTANDING OF THE MUSIC BUSINESS UNDER COMMUNIST RULE BOOKSHOPS AND RECORD SHOPS WERE OFTEN ONE AND THE SAME WITH PROFITS FROM RECORD SALES GOING TO SUBSIDIZE THE BOOKPUBLISHING INDUSTRY ALTHOUGH THAT SUBSIDY SYSTEM HAS NOW ENDED THE TRADITION OF BUYING RECORDS AT BOOKSHOPS HAS NOT IN A BID TO BEEF UP THEIR MARKETING EFFORTS THE BIG RECORD COMPANIES ARE WORKING TO OVERHAUL THE TOP 40 CHART ITSELF THE LIST NOW APPEARS ONLY EVERY TWO WEEKS AND RECORD LABELS SAY WEEKLY FIGURES ARE ESSENTIAL IN ORDER TO DECIDE WHAT TO ORDER AND WHAT TO PROMOTE AND WHETHER EXISTING PROMOTIONAL CAMPAIGNS ARE SUCCESSFUL IN ADDITION INDUSTRY OFFICIALS DOUBT THE ACCURACY OF THE CURRENT SURVEY WHICH IS CONDUCTED BY STUDENTS WHO VISIT RECORD SHOPS THE STORES ARE ASKED WHAT PEOPLE ARE LOOKING FOR SO IT'S ONLY AS ACCURATE AS THE SHOPKEEPER'S MEMORY SAYS ONE OFFICIAL BUT HE ACKNOWLEDGES THAT THE CUSTOMARY RETICENCE OF SHOPKEEPERS TO OPEN THEIR BOOKS WILL COMPROMISE THE ACCURACY OF ANY SALES SURVEY ANOTHER THING THAT DRIVES US CRAZY IS THAT MOST DISK JOCKEYS DON'T BACKANNOUNCE RECORDS SAYS MR CARRUTHERS OF SONY REFERRING TO THE ONAIR IDENTIFICATION OF A SONG AFTER IT'S PLAYED DISK JOCKEYS HE SAYS SOMETIMES GET PHONE CALLS FROM LISTENERS EAGER TO KNOW THE NAME OF A FAMILIAR SONG LET ME SING IT TO YOU THE LISTENERS PLEAD AND WHAT ARE THE NEWLY SIGNED HUNGARIAN ACTS SINGING ZORAN HUNGARY'S ANSWER TO LEONARD COHEN HAS A NEW DOUBLECD CALLED THE PAST 30 YEARS THAT JUST CAME OUT ON POLYGRAM SZANDI'S NEW SELFTITLED ALBUM HER FIRST FOR SONY IS MAINSTREAM POP INCLUDING A HUNGARIANLANGUAGE VERSION OF THE BANGLES' SONG MANIC MONDAY SONY OFFICIALS SAY IT MARKS A DEPARTURE FOR THE 18YEAROLD WHOSE EARLIER ALBUMS FEATURED CUTISH BRENDA LEESTYLE TUNES AND EVEN A HUNGARIAN VERSION OF ITSY BITSY TEENY WEENY YELLOW POLKA DOT BIKINI YOU CAN STILL HEAR THE '50S IN HER NEW ALBUM BUT YOU ALSO HEAR THE '60S '70S AND '80S SAYS MR CARRUTHERS SHE'S NO LONGER A 14YEAROLD SHE'S A YOUNG LADY SO HER MUSIC MUST EVOLVE AWAY FROM TOMBOYISH AND TOWARD THE FEMININE THE NEW ALBUM IS ENTIRELY IN HUNGARIAN ALTHOUGH SZANDI IN CONCERT SINGS SOME NUMBERS IN ENGLISH SUCH AS I WILL ALWAYS LOVE YOU RECENTLY A HUGE HIT BY WHITNEY HOUSTON SONY EXPECTS THE NEW ALBUM TO GO GOLD MEANING 50000 COPIES SOLD PLATINUM RECORDS SELLING 100000 COPIES ARE RARE IN HUNGARY 9401040152 940104 ENTERPRISE SMALL BUSINESSES SAY SUPERFUND OVERHAUL FALLS SHORT PROPOSED LAW WOULDN'T ELIMINATE THE BURDEN OF RETROACTIVE LIABILITY BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO APPROVE SHORTLY A PROPOSED OVERHAUL OF THE LAW GOVERNING CLEANUP OF HAZARDOUSWASTE SITES SMALLBUSINESS GROUPS ARE CONCLUDING THAT THIS IS GOOD NEWS AND BAD NEWS THE PLAN COULD HELP SMALL COMPANIES SOMEWHAT BUT IT WOULDN'T DO ENOUGH TO CURB THEIR RETROACTIVE LIABILITY SMALLBUSINESS ADVOCATES SAY ENTREPRENEURS HAVE LONG CHAFED OVER THE HEAVY LEGAL EXPENSES AND CREDIT RISKS CREATED BY THE 1980 SUPERFUND LAW SMALLBUSINESS OWNERS AND TRADE GROUPS WANT TO ELIMINATE THEIR OPENENDED LIABILITY FOR WASTES SITES USED BEFORE 1980 AND TO SPEED RESOLUTION OF THEIR CLEANUP RESPONSIBILITIES THE ADMINISTRATION'S REVISION OF THE SUPERFUND LAW WHICH MR CLINTON IS EXPECTED TO UNVEIL LATER THIS MONTH WOULDN'T GO THAT FAR HOWEVER THE PROPOSAL WOULD TAX INSURANCE COMPANIES TO CREATE A 500 MILLIONAYEAR FUND WHICH COULD BE USED FOR SETTLING LEGAL DISPUTES BETWEEN BUSINESSES AND THEIR INSURERS THE FEDERAL SETTLEMENT FUND COULD ABSORB AS MUCH AS 80 OF A COMPANY'S LIABILITY FOR CLEANING UP HAZARDOUS WASTES DUMPED BEFORE 1980 THEREFORE BUSINESSES WOULD STILL RETAIN CERTAIN CLEANUP RESPONSIBILITIES THE NEW FUND WOULDN'T BE AVAILABLE TO COMPANIES THAT STILL CHOOSE TO SUE THEIR INSURANCE COMPANIES FOR A CLEANUP'S ENTIRE COST IN ADDITION THE FUND PROBABLY WOULDN'T COVER BUSINESSES THAT LACKED ENVIRONMENTAL INSURANCE BEFORE 1980 THIS COMPROMISE LOOKS LIKE SOMETHING WE'RE SUPPORTIVE OF BUT IT DOESN'T TAKE CARE OF ALL THE RETROACTIVE LIABILITY SAYS HARRIET JAMES THE LOBBYIST ON ENVIRONMENTAL ISSUES FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE NATION'S LARGEST SMALLBUSINESS ORGANIZATION BUT BENJAMIN COOPER CHIEF LOBBYIST FOR PRINTING INDUSTRIES OF AMERICA IN ALEXANDRIA VA NEVERTHELESS IS ENCOURAGED BY THE ADMINISTRATION'S APPARENT WILLINGNESS TO ACKNOWLEDGE THAT RETROACTIVE LIABILITY HAS TO BE SIGNIFICANTLY MODIFIED OR ELIMINATED HE IS CONFIDENT THAT CONGRESS WILL DROP THE CURRENT LIABILITY SYSTEM IN THE PAST HOWEVER CONGRESS HAS EXPRESSED WARINESS ABOUT CHANGING THE LIABILITY PROVISIONS OF THE SUPERFUND LAW AND NO LAWMAKER HAS YET SPECIFICALLY ADDRESSED THE ANTICIPATED ADMINISTRATION PROPOSAL ANY PROPOSED SUPERFUND REVISION IS EXPECTED TO SPUR VIGOROUS DEBATE AS LAWMAKERS PUT FORWARD THEIR OWN BILLS WITHIN THE ADMINISTRATION THE TREASURY DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY WERE AT ODDS FOR MONTHS BEFORE AGREEING ON A COMPROMISE LAST MONTH TREASURY OFFICIALS HAD FAVORED EASING MUCH OF THE LAW'S BURDEN ON BUSINESSES BIG AND SMALL ARGUING THAT DISPOSAL PRACTICES OFTEN WERE LEGAL WHEN THE BUSINESSES USED THE WASTE SITES THE EPA WANTED POLLUTERS TO CONTINUE PAYING FOR PAST DUMPING PARTLY BECAUSE ABANDONING THE PRINCIPLE WOULD COST THE FEDERAL GOVERNMENT HEAVILY THE ADMINISTRATION'S COMPROMISE MARKS THE FIRST TIME THAT THE EPA HAS GIVEN ANY GROUND ON THE RETROACTIVELIABILITY ISSUE THE NFIB'S MS JAMES NOTES IT WON'T BE EASY FOR CONGRESS TO MAKE THE CLEANUP SYSTEM FAIRER AND MORE AFFORDABLE THREEFOURTHS OF ALL DUMPING IN HAZARDOUSWASTE SITES OCCURRED BEFORE 1980 AND SUPERFUND LITIGATION HAS COST BUSINESSES AND THE FEDERAL GOVERNMENT ABOUT 3 BILLION SINCE THEN SMALLBUSINESS OWNERS WITH FEWER FINANCIAL AND LEGAL RESOURCES THAN BIGGER RIVALS SAY THEY SUFFER BOTH FROM THEIR LEGAL LIABILITY UNDER THE SUPERFUND LAW AND FROM HAVING IT HANG OVER THEIR HEADS FOR YEARS SUPERFUND LITIGATION OFTEN LASTS FIVE TO 10 YEARS AND CAN FORCE A COMPANY TO SPEND 3 ON LEGAL COSTS FOR EVERY DOLLAR SPENT CLEANING UP THE ENVIRONMENT SAYS MR COOPER THE LOBBYIST THE PROTRACTED LIABILITY CAN EVEN MAKE IT HARDER FOR A SMALL COMPANY TO GAIN FINANCING LEE KOENIG PRESIDENT OF CROWN BATTERY MANUFACTURING CO IN FREMONT OHIO DESCRIBED SUCH A PROBLEM IN TESTIMONY LAST JUNE BEFORE A SUBCOMMITTEE OF THE HOUSE SMALL BUSINESS COMMITTEE MR KOENIG SAID THE EPA HAD DECLARED HIS COMPANY LIABLE FOR CLEANING UP WASTE SITES USED BY THREE RECYCLING COMPANIES THAT CROWN EMPLOYED TO SEPARATE THE LEAD FROM OLD BATTERIES FOR USE IN NEW ONES THE RECYCLERS LATER WENT OUT OF BUSINESS THE SMALL BATTERY MAKER AND HUNDREDS OF OTHER COMPANIES WERE DEEMED RESPONSIBLE FOR ONE DEFUNCT COMPANY'S TOXIC WASTES MR KOENIG TESTIFIED THAT THE EPA HAS ASSESSED CROWN 80000 FOR ITS PART OF THE CLEANUP AT ONE SITE AND HE EXPRESSED FEARS THAT HE WILL BE CHARGED MORE ONCE THE CLEANUP ACTUALLY BEGINS THE CONTINGENT LIABILITY HERE MAKES IT DIFFICULT FOR US TO GET FINANCING OR CREDIT AND THREATENS THE VERY EXISTENCE OF OUR COMPANY MR KOENIG NOTED ONE THING IS FOR SURE AS A SMALLBUSINESS OWNER I CERTAINLY CAN'T AFFORD TO BE INVOLVED IN ANY MORE SUPERFUND SITES SUCH SITUATIONS HIGHLIGHT THE INABILITY OF SMALL BUSINESSES TO OWN UP TO THEIR FAIR SHARE AND CASH OUT SAYS PAMELA NOYES LINTON CHAIRMAN OF POLLUTION SOLUTIONS OF VERMONT INC A SMALL BURLINGTON VT COMPANY THAT TREATS AND DISPOSES HAZARDOUS WASTES MS LINTON SUPPORTS A PROPOSAL THAT SHE RECENTLY HELPED TO DEVELOP AS PART OF THE NATIONAL COMMISSION ON SUPERFUND A COALITION OF 26 REPRESENTATIVES FROM BUSINESS ENVIRONMENTAL AND COMMUNITY GROUPS ALTHOUGH THE COMMISSION DIDN'T SUGGEST ELIMINATING BUSINESSES' RETROACTIVE LIABILITY IT DID BACK THE NOTION OF SPEEDING GOVERNMENT DECISIONS ABOUT A SMALL COMPANY'S FAIR SHARE OF LIABILITY AT A SITE AND SPREADING OUT A COMPANY'S PAYMENTS OVER A LONG PERIOD THE ADMINISTRATION IS ALSO EXPECTED TO ENDORSE QUICKER DECISIONS ON SMALL BUSINESSES' SUPERFUND LIABILITY THE PRIVATE COMMISSION RELEASED ITS SUPERFUND REFORM PROPOSAL LATE LAST MONTH MOST SMALLBUSINESS GROUPS PREFER COMPLETE ELIMINATION OF RETROACTIVE LIABILITY AS WELL AS GUARANTEES THAT A COMPANY WON'T FACE FURTHER SUITS FROM OTHER BUSINESSES AFTER IT SETTLES WITH THE US GOVERNMENT ELIMINATING SMALL FIRMS' RETROACTIVE LIABILITY WOULD BE A BIG BIG STEP FORWARD SAYS WILLIAM SONNTAG JR HEAD OF GOVERNMENT RELATIONS FOR THE NATIONAL ASSOCIATION OF METAL FINISHERS IN WASHINGTON WE DON'T KNOW WHERE THIS DEBATE WILL END UP MR SONNTAG CONTINUES BUT WE'LL BE ALERTING OUR MEMBERS AND SMALL BUSINESSES GENERALLY THAT THEY HAVE TO PAY ATTENTION TO THE SUPERFUND REFORM PROCESS IT WILL BE CRITICAL IN THE NEXT SESSION OF CONGRESS 9401040151 940104 CHINESE TEAM INVITED TO US FOR TRADE TALKS BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE US HAS INVITED CHINESE NEGOTIATORS TO WASHINGTON THIS WEEK IN A BID TO BREAK THE IMPASSE PREVENTING THE TWO COUNTRIES FROM SIGNING A NEW BILATERAL TEXTILE AGREEMENT US OFFICIALS SAID THE ACCORD THAT GOVERNS CHINESE TEXTILE AND APPAREL EXPORTS TO THE US EXPIRED FRIDAY US OFFICIALS LAST MONTH BROKE OFF NEGOTIATIONS WITH THE CHINESE AND THREATENED TO REDUCE CHINA'S QUOTAS UNILATERALLY IF BEIJING DIDN'T MEET US DEMANDS BY LAST WEEKEND BUT THE CLINTON ADMINISTRATION DECIDED LATE LAST WEEK TO REFRAIN FROM IMMEDIATE ACTION AND TO INVITE THE CHINESE TEAM TO WASHINGTON FOR TWO MORE DAYS OF TALKS BEGINNING TOMORROW A US OFFICIAL SAID YESTERDAY THAT THE CHINESE HADN'T YET INDICATED WHETHER THEY WOULD ACCEPT THE INVITATION WASHINGTON IS PRESSURING BEIJING TO CRACK DOWN ON THE EXPORT OF CHINESE GARMENTS THROUGH OTHER COUNTRIES US AUTHORITIES CHARGE THAT CHINA IS BY FAR THE LARGEST OFFENDER IN SUCH CASES SHIPPING AN ESTIMATED 2 BILLION IN ILLEGAL EXPORTS ON TOP OF ITS LEGAL QUOTAS WHICH TOTALED ABOUT 45 BILLION LAST YEAR CHINESE OFFICIALS DISPUTE THE US ESTIMATE AND SAY THEY ARE DOING THEIR BEST TO COMBAT ILLEGAL SHIPMENTS BUT WASHINGTON INSISTS THAT THE CHINESE COULD BE DOING MUCH MORE AND US OFFICIALS ARE USING THE NEW TEXTILE AGREEMENT AS LEVERAGE US NEGOTIATORS HAVE DEMANDED THAT CHINA'S QUOTAS BE REDUCED 25 TO 35 IN VARIOUS CATEGORIES PROMISING TO RESTORE THE QUOTAS ONCE THE SMUGGLING SITUATION IMPROVES THE US SIDE ALSO HAS INSISTED THAT THE NEW AGREEMENT ALLOW WASHINGTON TO DEDUCT FROM CHINA'S QUOTAS THREE TIMES THE AMOUNT OF ANY SMUGGLED GOODS THE US DISCOVERS US NEGOTIATORS HAVE MADE CLEAR THAT THEY ARE WILLING TO EASE SOME OF THEIR DEMANDS DURING NEGOTIATIONS BUT THEY SAY THE CHINESE SIDE HAS REFUSED TO BARGAIN SO FAR IT ISN'T UNUSUAL FOR NEGOTIATIONS TO GO BEYOND THE EXPIRATION OF A TEXTILE AGREEMENT BUT IF THE SITUATION DRAGS ON FOR MONTHS IMPORTERS IN THE US WILL BE FORCED TO LOOK FOR SUPPLIERS ELSEWHERE HURTING CHINA'S EXPORTS MOREOVER THE LACK OF AN AGREEMENT ON QUOTAS COULD PROMPT MORE CHINESE PRODUCERS TO RESORT TO ILLEGAL SHIPMENTS FRIDAY WAS ALSO THE DEADLINE FOR CHINA TO MEET PROMISES MADE TO THE US IN 1992 TO OPEN UP ITS MARKET ALTHOUGH BEIJING DIDN'T MEET ALL THE COMMITMENTS IT CAME CLOSE ANNOUNCING FRIDAY THE REMOVAL OF QUOTAS AND IMPORT LICENSES ON 238 ITEMS INCLUDING STEEL FRUIT CIVILIAN AIRCRAFT AND SOME MACHINERY AND ELECTRONIC PRODUCTS US OFFICIALS NOW ARE WAITING FOR CHINESE OFFICIALS TO FOLLOW UP ON UNDERSTANDINGS THE TWO SIDES REACHED DURING NEGOTIATIONS IN BEIJING LAST MONTH CONCERNING THE PUBLICATION OF CHINA'S TRADE REGULATIONS WE WANT TO SEE IN WRITING THAT WE AGREE ON WHAT THESE THINGS MEAN THE US OFFICIAL SAID IF BEIJING PROVIDES THAT DOCUMENTATION THE OFFICIAL SAID IT WOULD BE UNLIKELY THAT WASHINGTON WOULD FOLLOW THROUGH ON A THREAT TO IMPOSE SANCTIONS THEY WILL HAVE MET MOST THOUGH NOT ALL OF THE TARGETS SET IN THE AGREEMENT I SUSPECT THAT WE WILL CONCLUDE THAT THEY HAVE DONE ENOUGH BUT THAT IS A DECISION THAT HAS TO BE MADE AT THE HIGHEST LEVELS HE SAID 9401040150 940104 POLITICS & POLICY CRITICS SAY SOME GAPS IN REPORT ON WHITEWATER MEAN THE CLINTONS AREN'T OUT OF THE RAPIDS YET BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FOR 21 MONTHS BILL AND HILLARY RODHAM CLINTON HAVE RELIED ON AN ACCOUNTANTS' REPORT COMMISSIONED TO QUELL THE CONTROVERSY OVER THEIR WHITEWATER DEVELOPMENT CO PARTNERSHIP WITH THE OWNER OF A FAILED ARKANSAS THRIFT NOW THAT REPORT IS COMING UNDER INCREASING SCRUTINY BY CRITICS AND INVESTIGATORS THEY INSIST THAT THE REPORT WHICH PORTRAYED WHITEWATER TO BE UNPROFITABLE IS MORE REMARKABLE FOR WHAT IT DOESN'T DIVULGE THAN WHAT IT DOES IN THE COMING WEEKS INVESTIGATORS FOR REPUBLICANS ON THE HOUSE BANKING COMMITTEE ARE EXPECTED TO CONCENTRATE MUCH OF THEIR EFFORT ON TEARING APART THE SOCALLED LYONS REPORT IT'S RIDICULOUS SAYS IOWA REP JAMES LEACH THE TOP REPUBLICAN ON THE HOUSE BANKING COMMITTEE I'D CHARACTERIZE IT AS DEFENSIVE POLITICAL POSTURING THE ONLY VALID PART I SAW WAS THE ACKNOWLEDGEMENT THAT ALL THE RECORDS WEREN'T AVAILABLE THE REPORT WAS PREPARED BY PATTEN MCCARTHY & ASSOCIATES A DENVERBASED FORENSIC ACCOUNTING FIRM ONE THAT SPECIALIZES IN FINANCIAL RECONSTRUCTIONS WHEN CORPORATE RECORDS ARE INCOMPLETE OR MISSING THE FIRM WAS RETAINED BY DENVER ATTORNEY JAMES LYONS ONE OF THE CLINTON FRIENDS WHO ENGAGED IN POLITICAL DAMAGE CONTROL IN MARCH 1992 WHEN WHITEWATER BROKE AS A NATIONAL STORY DEFENDERS OF THE REPORT SAY IT WAS NEVER INTENDED TO BE A FULL ACCOUNTING OF WHITEWATER FINANCES IT WAS MEANT SAYS WHITE HOUSE AIDE BRUCE LINDSEY ONLY TO ADDRESS A LIMITED QUESTION HOW MUCH DID THE CLINTONS INVEST AND WHAT HAPPENED TO IT AS FAR AS THE CLINTONS ARE CONCERNED THE MOST THAT CAN BE SAID IS THEY INVESTED 69000 AND LOST IT ALL HE SAYS BUT EVEN THAT FINDING IS OPEN TO QUESTION SINCE THE CLINTONS HAVEN'T CLAIMED A LOSS OF THAT SIZE ON ANY OF THEIR TAX RETURNS THEIR FAILURE TO DO SO HAS THE EFFECT OF UNDERCUTTING A MAJOR THRUST OF THE LYONS REPORT THE FIRM REFERS INQUIRIES TO THE REPORT TO MR LYONS WHO DID NOT RETURN PHONE CALLS TO DISCUSS IT THE APPARENT GAPS IN THE REPORT ARE PART OF A LARGER PATTERN OF FLAWED ATTEMPTS BY THE CLINTONS AND THEIR AIDES TO PUT WHITEWATER BEHIND THEM MOST NOTABLY THE CLINTONS RESISTED FOR MONTHS MAKING PUBLIC ANY OF THEIR WHITEWATER BUSINESS OR TAX RECORDS AND LAST MONTH INITIALLY REFUSED TO LET INVESTIGATORS EXAMINE WHITEWATERRELATED BUSINESS RECORDS THAT WERE TAKEN FROM THE OFFICE OF DEPUTY WHITE HOUSE COUNSEL VINCENT FOSTER AFTER HE COMMITTED SUICIDE IN JULY SOME POLITICAL FOES HAVE SUGGESTED A POSSIBLE LINK BETWEEN HIS DEATH AND WHITEWATER BECAUSE MR FOSTER AS THE CLINTONS' PERSONAL LAWYER HAD HANDLED THE SALE OF THEIR HOLDINGS TO JAMES MCDOUGAL THEIR WHITEWATER PARTNER AND THE PROPRIETOR OF THE FAILED MADISON GUARANTY SAVINGS & LOAN AFTER SEVERAL DAYS OF DAMAGING NEWS STORIES MR CLINTON LAST MONTH PROMISED TO HAND OVER THE RECORDS TO THE JUSTICE DEPARTMENT WHICH IS INVESTIGATING WHETHER MADISON GUARANTY IMPROPERLY FUNNELED MONEY INTO WHITEWATER OR INTO MR CLINTON'S 1984 REELECTION CAMPAIGN WHEN HE WAS GOVERNOR OF ARKANSAS THE WHITE HOUSE SAID YESTERDAY THAT WHITEWATER RECORDS AND CERTAIN CAMPAIGN FILES WHICH IT DIDN'T SPECIFY WERE BEING CATALOGUED AND WILL BE GIVEN TO JUSTICE DEPARTMENT INVESTIGATORS IN A COUPLE OF WEEKS THE FIRST COUPLE'S FUMBLINGS ON TAXES HAVEN'T HELPED ALLAY SUSPICIONS EITHER THEY MISTAKENLY TOOK TAX DEDUCTIONS IN 1984 AND 1985 THAT WERE REALLY WHITEWATER'S TO TAKE IN ADDITION NO CORPORATE RETURNS WERE FILED FOR WHITEWATER BY EITHER THE CLINTONS OR MR MCDOUGAL AND HIS WIFE FOR THREE YEARS IT WAS MR FOSTER WHO OVERSAW THE PREPARATION OF THE DELINQUENT RETURNS FOR THE THREEYEAR PERIOD THERE IS EVIDENCE APLENTY THAT THE LYONS REPORT OMITTED OR GLOSSED OVER SOME PERTINENT FACTS THE REPORT FOR INSTANCE DOESN'T MENTION THE UNFILED TAX RETURNS IT ALSO NEGLECTS TO MENTION ONE OF WHITEWATER'S MOST IMPORTANT TRANSACTIONS AN AIRPLANEFORLAND SWAP INVOLVING CHRIS WADE WHO WAS THE REALESTATE AGENT FOR THE 200ACRE VACATIONHOME DEVELOPMENT ALONG THE WHITE RIVER IN NORTHERN ARKANSAS AND WHO ALSO OWNED AN AIRCHARTER SERVICE IN 1985 MR WADE GAVE A PIPER SEMINOLE TO MR MCDOUGAL THE CLINTONS' WHITEWATER PARTNER AND AGREED TO MAKE PAYMENTS ON PART OF WHITEWATER'S ORIGINAL MORTGAGE IN RETURN MR WADE GOT THE STILLUNSOLD LOTS IN THE DEVELOPMENT ABOUT HALF THE TOTAL NUMBER OF LOTS WE WANTED TO GET OUT OF THE AIRPLANE BUSINESS SAYS MR WADE THEY WANTED TO GET OUT OF THE LAND BUSINESS MR MCDOUGAL IN TURN SOLD THE TWINENGINED PLANE TO A LITTLE ROCK AIR SERVICE AND THEN HE HAD SETH WARD BROTHERINLAW OF ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL BUY THE PLANE FOR MADISON GUARANTY'S USE ACCORDING TO A FORMER MADISON EXECUTIVE WHO HANDLED THE 25000 LOAN FOR MR WARD'S PURCHASE LATER THE PLANE WAS SOLD AGAIN AND MR WARD'S DEBT PAID OFF THE CREDIBILITY OF THE LYONS REPORT AND THUS THAT OF THE CLINTONS' WAS FURTHER ERODED IN NOVEMBER BY A WASHINGTON POST STORY WHICH REVEALED THAT WHITEWATER BOUGHT LAND FROM INTERNATIONAL PAPER CO'S REALTY UNIT IN OCTOBER 1986 THIS 550000 PURCHASE WAS OMITTED FROM THE REPORT EVEN THOUGH IT WAS WHITEWATER'S LARGEST TWO MONTHS LATER MR MCDOUGAL TRANSFERRED TITLE TO THE LAND TO ANOTHER COMPANY LEAVING WHITEWATER OBLIGATED FOR THE MORTGAGE INTERNATIONAL PAPER SUBSEQUENTLY SUED WHITEWATER AND RECLAIMED THE PROPERTY AFTER MR MCDOUGAL STOPPED MAKING MORTGAGE PAYMENTS THOUGH THE TRANSACTION'S OMISSION FROM THE LYONS REPORT IS EMBARRASSING TO THE PRESIDENT ITS INCLUSION MIGHT HAVE BEEN EVEN MORE EMBARRASSING DURING THE CAMPAIGN THAT IS BECAUSE IN 1985 THENGOV CLINTON HAD NEGOTIATED MAJOR TAX CONCESSIONS TO KEEP INTERNATIONAL PAPER FROM MOVING TWO OF ITS PLANTS OUT OF ARKANSAS MR LINDSEY THE WHITE HOUSE AIDE SAYS MR MCDOUGAL NEVER TOLD THE CLINTONS ABOUT THE INTERNATIONAL PAPER DEAL CLINTON AIDES TRY IN OFFTHERECORD ASIDES TO DEPICT MR MCDOUGAL AS A RECKLESS BUSINESSMAN THE LYONS REPORT MEANWHILE CASTS THE CLINTONS AS PASSIVE SHAREHOLDERS WHO LET MR MCDOUGAL EXERCISE TOTAL CONTROL OVER WHITEWATER'S OPERATION THAT MAY HAVE BEEN TRUE OF MR CLINTON GIVEN HIS PREOCCUPATION WITH POLITICS AND PUBLIC POLICY AND HIS DEFERENCE TO HIS WIFE ON FAMILY FINANCES SAYS MR MCDOUGAL THIS IS A GUY WHO DOESN'T KNOW HOW TO PUT THE PRICE ON A CAN OF BEANS BUT THERE'S ALSO EVIDENCE THAT HILLARY CLINTON MAY NOT HAVE BEEN SUCH A PASSIVE INVESTOR IN DECEMBER 1980 FOR EXAMPLE SHE PERSONALLY BORROWED 30000 TO BUY A LOT AND MODEL HOME ACCORDING TO COURT RECORDS DURING THE 1992 CAMPAIGN THE EXPLANATION WAS THAT SHE WAS ACTING IN BEHALF OF WHITEWATER IN NOVEMBER OF 1981 MRS CLINTON SOLD THE PROPERTY FOR 27500 IN 1988 AFTER THE BUYER DEFAULTED ON HIS PAYMENTS AND DIED SHE BOUGHT THE PROPERTY FROM HIS ESTATE FOR 8000 AND SOON THEREAFTER RESOLD IT FOR ABOUT 23000 AFTER CLOSING COSTS ACCORDING TO THE NEW YORK TIMES THE CLINTONS REPORTED A 1640 CAPITAL GAIN THAT YEAR FROM THE TRANSACTION AFTER MRS CLINTON PAID OFF A 13000 DEBT ON THE PROPERTY WHAT'S MORE MRS CLINTON THAT YEAR ASKED MR MCDOUGAL AND HIS WIFE FOR POWER OF ATTORNEY TO ACCORDING TO THE REQUEST MANAGE AND CONDUCT ALL MATTERS RELATED TO WHITEWATER DEVELOPMENT CORP IT ISN'T CLEAR WHETHER SHE WAS EVER GRANTED SUCH POWER AT HER REQUEST HOWEVER MR MCDOUGAL SAYS HE SHIPPED ALL OF WHITEWATER'S RECORDS TO THE GOVERNOR'S MANSION IN 1987 THE FIRST COUPLE'S RESPONSE TO ALL WHITEWATER CRITICISM ALWAYS NARROWLY FOCUSES ON THE LOSS THEY SAY THEY SUSTAINED ON THE VACATIONHOME PROJECT IN MARCH 1992 MR CLINTON ASSERTED THAT WE NEVER MADE A PENNY ON THE INVESTMENT MORE RECENTLY HE HAS DISMISSED WHITEWATER AS AN OLD STORY ADDING WE DID NOTHING IMPROPER AND I HAVE NOTHING TO SAY ABOUT IT MEANWHILE MR WADE THE REALESTATE AGENT IS MYSTIFIED BY ALL THE FUROR I'VE NEVER FIGURED OUT ALL THE INTEREST IN WHITEWATER HE SAYS IT WAS JUST YOUR AVERAGE OL' REALESTATE DEAL FOR THIS PART OF THE WORLD KENNETH H BACON CONTRIBUTED TO THIS ARTICLE BILL AND HILLARY RODHAM CLINTON AND JAMES AND SUSAN MCDOUGAL WERE JOINTLY LIABLE FOR A 183000 MORTGAGE ON THE 200ACRE WHITEWATER PROPERTY AS OF MAY 31 1991 THE CLINTONS HAD RECEIVED NO RETURN ON INVESTMENT THEIR TOTAL LOSS 68900 THE MCDOUGALS INVESTED OR OTHERWISE ADVANCED 268000 TO WHITEWATER AND WITHDREW 175800 THEIR NET LOSS 92200 ON 1984 AND 1985 TAX RETURNS THE CLINTONS MISTAKENLY CLAIMED INTEREST DEDUCTIONS TOTALLING 5133 TO WHICH WHITEWATER WAS ENTITLED 9401040149 940104 WHO'S NEWS MBIA INC MBIA INC ARMONK NY THIS INSURER OF MUNICIPAL SECURITIES NAMED DAVID H ELLIOTT PRESIDENT AND CHIEF EXECUTIVE OFFICER TO THE ADDITIONAL POST OF CHAIRMAN MR ELLIOTT 52 YEARS OLD SUCCEEDS WILLIAM O BAILEY 67 MR BAILEY WHO WILL CONTINUE AS A DIRECTOR HAD BEEN CHAIRMAN SINCE 1986 MR ELLIOTT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER IN 1986 WHEN MBIA INC WAS FORMED IN 1992 HE WAS NAMED CHIEF EXECUTIVE OFFICER 9401040148 940104 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 1/4 HIGH 2 3/4 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 316 30 TO 89 DAYS 320 90 TO 149 DAYS 325 150 TO 179 DAYS 330 180 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 325 30 DAYS 325 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 255 ONE MONTH 261 TWO MONTHS 264 THREE MONTHS 277 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 320 ONE MONTH 330 THREE MONTHS 340 SIX MONTHS BANKERS ACCEPTANCES 313 30 DAYS 315 60 DAYS 316 90 DAYS 320 120 DAYS 324 150 DAYS 328 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS CLOSED DUE TO HOLIDAY LONDON INTERBANK OFFERED RATES LIBOR CLOSED DUE TO HOLIDAY FOREIGN PRIME RATES CANADA 550 GERMANY 595 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 714 60 DAYS 722 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 711 60 DAYS 721 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9401040147 940104 PEPPERAND SALT YOU WILL KNOW FOR A FACT THAT YOU'RE OUT ON A WHIM OR MAYBE DONAHUE 9401040146 940104 INTERNATIONAL ALCATEL'S TELECOM AUSTRALIA PACT PARIS ALCATEL ALSTHOM NV WILL SELL TWO INTERNATIONAL PHONESYSTEM EXCHANGES MORE THAN FIVE MILLION LINES AND OTHER EQUIPMENT VALUED AT OVER ONE BILLION AUSTRALIAN DOLLARS US6791 MILLION TO TELECOM AUSTRALIA THE PURCHASES ARE PART OF A FIVEYEAR MODERNIZATION OF THE AUSTRALIAN SYSTEM THE COMPANY SAID IN A STATEMENT THE INTERNATIONAL EXCHANGES ARE VALUED AT A30 MILLION US204 MILLION A BREAKDOWN FOR THE VALUE OF THE OTHER EQUIPMENT WASN'T AVAILABLE 9401040145 940104 LAWARE SEES DRAGS ON ECONOMY IN 1994 DESPITE STRONG PERIOD WASHINGTON FEDERAL RESERVE GOVERNOR JOHN LAWARE SAID THAT THE FOURTH QUARTER LOOKS TO BE VERY STRONG INDEED BUT ADDED I'M NOT SURE ANY OF US EXPECT THAT TO CARRY OVER AT THE SAME RATE INTO THE FIRST QUARTER OR THE REST OF THE YEAR IN AN INTERVIEW MR LAWARE ALSO SAID HE DOESN'T SEE A LOT OF INFLATIONARY PRESSURES OUT THERE THE CHALLENGE FOR FED POLICYMAKERS HE SAID IS TO FIGURE OUT WHEN THEY ARE BEGINNING TO OCCUR PARTICULARLY WITH THE LAGS IN MONETARY POLICY FED POLICYMAKERS MET ON DEC 21 TO SET THE COURSE OF SHORTTERM INTEREST RATES FOR THE COMING WEEKS FED OFFICIALS HAVE MADE FEW PUBLIC COMMENTS SINCE THE MEETING MR LAWARE CITED A NUMBER OF POSSIBLE DRAGS ON THE ECONOMY IN 1994 I'M STILL NOT SURE WHAT THE FULL IMPACT ON PEOPLE'S ATTITUDES AND BEHAVIOR WILL BE WHEN THEY FULLY REALIZE WHAT THE INCREASES IN TAXES ARE HE SAID HE ALSO MENTIONED THE COST OF THE HEALTHCARE PROGRAM AND WHO'S GOING TO PAY FOR IT THE CONTINUED REENGINEERING OF US COMPANIES THE CONTINUED CUTBACKS IN DEFENSE PARTICULARLY BASE CLOSINGS IT JUST SEEMS TO ME THAT THESE ARE ALL DAMPERS ON THE ECONOMY THE FULL IMPACT OF WHICH MAY BE FELT MORE THIS YEAR THAN LAST YEAR HE SAID MR LAWARE THE FED'S POINT MAN ON BANKING ISSUES SAID THE FED IS PREPARING A PROPOSAL OF ITS OWN FOR RESTRUCTURING THE FEDERAL BANKREGULATORY APPARATUS THE FED OBJECTS TO THE CLINTON ADMINISTRATION'S PLAN WHICH WOULD CENTRALIZE BANK REGULATION IN A NEW FEDERAL BANKING COMMISSION 9401040142 940104 METALLGESELLSCHAFT AG TO OFFER SOLUTIONS' AT CREDITORS' MEETING SPECIAL TO THE WALL STREET JOURNAL FRANKFURT TOP MANAGERS AT BELEAGUERED GERMAN MINING AND INDUSTRIAL GROUP METALLGESELLSCHAFT AG WILL OFFER A RANGE OF SOLUTIONS TO ITS CONTINUING PROBLEMS DURING A MEETING WITH CREDITORS SET FOR MIDDAY TOMORROW WE WILL SUBMIT ALTERNATIVE SOLUTIONS TO THE PROBLEMS WE'RE FACING AND WE'RE POSITIVE THAT THE BANKS WILL FIND WITH US A POSITIVE RESULT GROUP SPOKESMAN HANS SCHREIBER SAID THE MEETING WILL FOCUS ON PROBLEMS FACING THE GROUP'S US SUBSIDIARY METALLGESELLSCHAFT CORP AS WELL AS STRATEGIC CONCEPTS FOR THE BROADLY DIVERSIFIED COMPANY MR SCHREIBER SAID ANALYSTS PREDICTED THAT THESE STRATEGIC CONCEPTS COULD INCLUDE SELLING SOME OF THE GROUP'S 258 INTERCONNECTED COMPANIES PARTICULARLY THOSE RECENTLY ACQUIRED BY FORMER CHAIRMAN HEINZ SCHIMMELBUSCH DIVESTITURES CAN'T BE EXCLUDED FROM THE TOPICS THAT COULD ARISE DURING TOMORROW'S MEETING MR SCHREIBER SAID BUT I CAN'T CONFIRM THIS THE COMPANY'S TROUBLES BEGAN SURFACING IN NOVEMBER WHEN THE GROUP REPORTED AN UNEXPECTED LOSS OF 347 MILLION MARKS 200 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 THE ANNOUNCEMENT WAS FOLLOWED BY A SPATE OF BAD NEWS INCLUDING A POTENTIAL LOSS ON NEW YORK OIL FUTURES CONTRACTS THAT OBSERVERS ESTIMATE COULD BE AS HIGH AS ONE BILLION MARKS 576 MILLION AND ACCUSATIONS AGAINST MR SCHIMMELBUSCH WHO WAS DISMISSED ALONG WITH FIVE OTHERS JUST BEFORE CHRISTMAS TOMORROW'S MEETING WAS CALLED AMID RUMORS THAT SOME OF METALLGESELLSCHAFT'S CREDITORS WERE CONSIDERING DEMANDING A QUICK REPAYMENT OF THEIR LOANS 9401040141 940104 GE PLANS MUTUAL FUNDS FAIRFIELD CONN GENERAL ELECTRIC CO'S GE INVESTMENTS UNIT SAID IT IS ENTERING THE FULLSERVICE 401K MARKET WITH ITS OWN GROUP OF MUTUAL FUNDS GE INVESTMENTS STAMFORD CONN SAID STATE STREET BANK & TRUST CO BOSTON WILL ACT AS CUSTODIAN AND TRANSFER AGENT FOR THE FUNDS GE INVESTMENTS WILL PROVIDE PLAN SPONSORS WITH ACTIVE INVESTMENT MANAGEMENT OF ITS FUNDS AS WELL AS SUPPORT SERVICES GE INVESTMENTS AN INDEPENDENT MONEY MANAGER SERVES 50 CORPORATE AND PUBLIC INSTITUTIONAL CLIENTS 9401040140 940104 COMPANIES INCREASING THEIR PAYOUTS IN 1993 WERE MOST SINCE 1989 NEW YORK THE NUMBER OF COMPANIES BOOSTING DIVIDENDS IN 1993 WAS THE HIGHEST SINCE 1989 ACCORDING TO STANDARD & POOR'S CORP THERE WERE 1635 DIVIDEND INCREASES IN 1993 THE HIGHEST NUMBER SINCE 1656 COMPANIES RAISED DIVIDENDS IN 1989 THE 1993 FIGURE REPRESENTS A 23 JUMP FROM 1333 IN 1992 S&P ALSO SAID THAT 1993 SAW THE FEWEST UNFAVORABLE DIVIDEND ACTIONS DECREASES AND OMISSIONS FOR A FULL YEAR SINCE 1988 IN 1993 THERE WERE 87 CUTS AND 106 OMISSIONS IN 1988 THERE WERE 62 DECREASES AND 117 OMISSIONS IN 1992 THERE WERE 131 CUTS AND 106 OMISSIONS DIVIDENDS OBVIOUSLY ARE BEING HELPED BY THE PICKUP IN THE ECONOMY IN THE PAST FEW MONTHS WHICH IS LIFTING CORPORATE PROFITS AND CASH FLOW SAID ARNOLD KAUFMAN EDITOR OF THE OUTLOOK S&P'S WEEKLY INVESTMENT ADVISORY NEWSLETTER WHILE THE RECENT RATE OF IMPROVEMENT IS UNLIKELY TO CONTINUE NO END TO THE CURRENT ECONOMIC EXPANSION IS IN SIGHT BUSINESS CONFIDENCE IS EXPECTED TO REMAIN RELATIVELY HIGH WHICH SHOULD TRANSLATE INTO CONTINUED DIVIDEND PROGRESS THE 10YEAR PEAK OF 1833 DIVIDEND INCREASES IN 1983 COULD WELL BE EXCEEDED THIS YEAR DECEMBER DIVIDEND INCREASES WERE STRONG WITH THE NUMBER HIGHER THAN IN ANY DECEMBER SINCE 1983 THERE ALSO WERE FEWER UNFAVORABLE DIVIDEND ACTIONS IN DECEMBER THAN IN ANY DECEMBER SINCE 1983 THE NUMBER OF COMPANIES REPORTING DIVIDEND INCREASES IN DECEMBER TOTALED 171 UP 41 FROM DECEMBER 1992 THERE WERE 16 UNFAVORABLE ACTIONS SIX DECREASES AND 10 OMISSIONS COMPARED WITH 27 EIGHT DECREASES AND 19 OMISSIONS IN DECEMBER 1992 9401040139 940104 BUSINESS BRIEF WALGREEN'S NET SALES FOR FISCAL 1ST QUARTER REACH RECORD LEVELS DEERFIELD ILL WALGREEN CO REPORTED RECORD SALES AND EARNINGS FOR ITS FISCAL FIRST QUARTER BUT THE RESULTS CAME IN AT THE LOW END OF ANALYST EXPECTATIONS AND SHARES OF THE BIG DRUGSTORE CHAIN SLIPPED FOR THE PERIOD ENDED NOV 30 WALGREEN'S NET INCOME WAS 442 MILLION OR 36 CENTS A SHARE A YEAR EARLIER A 236 MILLION NEGATIVE EFFECT OF AN ACCOUNTING CHANGE TRIMMED THE COMPANY'S EARNINGS FROM 396 MILLION TO 16 MILLION OR 13 CENTS A SHARE EARNINGS ROSE 12 FROM A YEAR EARLIER EXCLUDING THE SPECIAL ITEM THE INCREASE CAME ON A 11 SALES UPTURN TO 212 BILLION FROM 191 BILLION THE RESULTS DIDN'T GLADDEN WALL STREET WHICH HAD BEEN LOOKING FOR PERSHARE EARNINGS IN THE RANGE OF 36 TO 38 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WALGREEN SHARES DECLINED 75 CENTS TO 40125 WALGREEN'S PROFIT MARGINS LONG BOLSTERED BY STEADILY GROWING PROFITS AT ITS BIG PHARMACY OPERATION HAVE FOR MORE THAN A YEAR BEEN UNDER PRESSURE FROM RESTRAINED GROWTH IN DRUG PRICES PRESCRIPTION DRUGS NOW REPRESENT SLIGHTLY MORE THAN 40 OF ITS OVERALL SALES COMPARED WITH ABOUT 30 FIVE YEARS AGO THE COMPANY HAD 1892 STORES AT THE CLOSE OF THE LATEST PERIOD COMPARED WITH 1761 A YEAR EARLIER WALGREEN CHAIRMAN CHARLES R WALGREEN III SAID OUR AGGRESSIVE EXPANSION PLANS ARE VERY MUCH ON SCHEDULE WALGREEN OPENED 149 STORES IN FISCAL 1993 AND SAID IT EXPECTS TO OPEN 175 DRUGSTORES IN THE CURRENT YEAR BY 1996 MR WALGREEN SAID WE EXPECT TO BE OPENING 200 STORES A YEAR ACROSS THE COUNTRY 9401040138 940104 INTERNATIONAL FRENCH BANKS CUT BASELENDING RATES TO 795 IN MOVE TO SPUR RECOVERY BY PETER GOLDSTEIN SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH COMMERCIAL BANKS CUT BASELENDING RATES YESTERDAY PARTLY IN RESPONSE TO COMPLAINTS FROM TOP FRENCH OFFICIALS THAT THE BENEFITS OF LOWER INTEREST RATES FROM THE CENTRAL BANK HAVEN'T BEEN PASSED ON TO BORROWERS THE MAJOR FRENCH LENDERS LOWERED BASELENDING RATES TO 795 FROM 815 EFFECTIVE TOMORROW THE BASE RATE IS CHARGED TO THE BANKS' MOST CREDITWORTHY CUSTOMERS BOTH FRENCH PRESIDENT FRANCOIS MITTERRAND AND PRIME MINISTER EDOUARD BALLADUR HAVE CALLED ON THE BANKS RECENTLY TO EASE THE COST OF CREDIT TO HELP SPARK ECONOMIC RECOVERY THE LEADERS HAVE COMPLAINED THAT CONSUMERS AND BUSINESSES ARE DISCOURAGED FROM SPENDING AND INVESTING BECAUSE LOAN COSTS ARE TOO HIGH MR BALLADUR HAS BEEN PARTICULARLY CONCERNED ABOUT THE IMPACT OF HIGH LENDING RATES ON SMALL BUSINESSES LATE LAST YEAR HE CONVENED THE PRESIDENTS OF LEADING FRENCH BANKS TO HIS OFFICE TO DISCUSS WAYS TO FACILITATE CORPORATE LENDING PARTICULARLY AMONG REGIONAL COMPANIES THE BANKS HAVE BEEN GETTING A LOT OF HASSLE SAID J PAUL HORNE SENIOR ECONOMIST FOR SMITH BARNEY SHEARSON IN PARIS I'D HAVE TO AGREE THAT THIS CUT WAS A LITTLE OVERDUE FRENCH BANKS HAVEN'T CUT BASE RATES SINCE OCT 25 WHEN THEY WERE LOWERED TO 815 FROM 840 MEANTIME THE BANK OF FRANCE HAS LOWERED BENCHMARK RATES ON TWO SEPARATE OCCASIONS WITH NO IMMEDIATE RESPONSE FROM COMMERCIAL LENDERS IN ADDITION MARKETINTEREST RATES HAVE EASED CONSIDERABLY ESTABLISHING A SOLID BEACHHEAD BELOW THE PSYCHOLOGICALLY SIGNIFICANT 7 LEVEL OVERNIGHT MONEY IN THE FRENCH INTERBANK MARKET WAS AVERAGING 65 MONDAY WHILE THE CHARGE ON THREEMONTH EUROFRANCS IS AVERAGING 6 1/8 FRENCH STOCK PRICES ROSE IN RESPONSE TO THE LOWER RATES WITH THE BENCHMARK INDEX RISING ALMOST 1 ANALYSTS SAID THE BANKS' DECISION TO RING IN 1994 WITH A RELATIVELY MODEST RELAXATION OF LOAN RATES PROBABLY REFLECTS THEIR EXPECTATIONS FOR FURTHER OFFICIAL RATE CUTS THIS MONTH THE BANKS RECENTLY HAVE TAKEN A MORE ANTICIPATORY APPROACH ON BASE RATES COMMENTED A SENIOR ECONOMIST AT ONE OF THE BANKS THAT EASED RATES YESTERDAY WHEREAS BEFORE THEY THE BANKS WOULD WAIT FOR THE BANK OF FRANCE TO MAKE A MOVE NOW IT'S THE OPPOSITE INDEED THE LAST BASE RATE CUT ON OCT 25 PRECEDED BY ONE DAY AN EASING BY THE CENTRAL BANK THIS TIME AROUND MANY OBSERVERS EXPECT GERMANY'S CENTRAL BANK TO TRIM RATES NO LATER THAN JAN 20 WHICH IS SEEN OPENING THE DOOR FOR THE BANK OF FRANCE TO FOLLOW SUIT A QUARTERPOINT CUT IN BOTH FRANCE AND GERMANY IS PRETTY MUCH IN THE BAG SMITH BARNEY'S MR HORNE PREDICTED HOWEVER WITH GERMANY THE STABILITY OF THE MARK IS ALWAYS A CONCERN BUNDESBANK PRESIDENT HANS TIETMEYER IN HIS LAST INTERVIEW OF 1993 REAFFIRMED THE IMPORTANCE OF PROTECTING THE GERMAN CURRENCY AND INDICATED THAT THE GERMAN CENTRAL BANK WILL RESIST PRESSURES FOR GENEROUS INTERESTRATE REDUCTIONS THAT WOULD ENDANGER THE MARK 9401040137 940104 INTERNATIONAL CANADA TRIES TO STEM TIDE OF TAX EVASION REVOLT IN RESPONSE TO RISE IN LEVIES CONTRIBUTES TO GOVERNMENT DEFICITS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA FACED WITH HEAVY LOSSES FROM TAX CHEATING CANADA'S NEW GOVERNMENT IS CRACKING DOWN ON OTHERWISE LAWABIDING CANADIANS WHO HAVE BECOME ADEPT AT DODGING TAXES SPECIAL AUDIT TEAMS ARE BEING FORMED TO INVESTIGATE BUSINESSES WITH POOR COMPLIANCE RECORDS IN AREAS SUCH AS HOME RENOVATION AUTO REPAIR CONSTRUCTION AND JEWELRY TAX LAWS ALSO ARE TO BE REWRITTEN TO CURB UNDERGROUND ACTIVITY CANADIANS WANT EVERYONE TO PAY THEIR FAIR SHARE AND I INTEND TO DELIVER SAYS REVENUE MINISTER DAVID ANDERSON HIS TASK IS FORMIDABLE CANADIANS WHO PRIDE THEMSELVES ON BEING LAWABIDING ARE IN RECORD NUMBERS DODGING INCOME TAXES AND EVADING LEVIES ON CIGARETTES LIQUOR AND OTHER GOODS AND SERVICES A TAX REVOLT APPEARS TO BE UNDER WAY IN CANADA SAYS TED CARMICHAEL SENIOR ECONOMIST AT THE TORONTO SECURITIES COMPANY BURNS FRY LTD TAX REFORM MUST BEGIN WITH THE WORDS ENOUGH IS ENOUGH' SAYS JOHN BULLOCH PRESIDENT OF THE CANADIAN FEDERATION OF INDEPENDENT BUSINESS WHICH REPRESENTS SMALL AND MEDIUMSIZE BUSINESSES FINANCE MINISTER PAUL MARTIN SAYS THE UNDERGROUND ECONOMY IS NOW ENORMOUS PARTICIPATING IN IT HE SAYS ARE HUNDREDS OF THOUSANDS OF OTHERWISE HONEST PEOPLE WHO REALLY HAVE WITHDRAWN THEIR CONSENT TO BE GOVERNED THEY THINK THEY ARE OVERTAXED THEY THINK GOVERNMENTS ARE WASTING THEIR MONEY THEY ARE DOING THINGS OPERATING AT A LEVEL OF IMMORALITY THAT THEY WOULDN'T HAVE DONE 10 YEARS AGO EVEN WITH THE CURRENT LEVEL OF CHEATING THE AVERAGE CANADIAN FAMILY WILL PAY 611 CANADIAN DOLLARS US46155 MORE IN TAXES THIS YEAR THAN IN 1992 ACCORDING TO THE FRASER INSTITUTE AN ECONOMIC RESEARCH ORGANIZATION TAX REVENUE TOTALS 37 OF CANADA'S GROSS DOMESTIC PRODUCT COMPARED WITH 296 IN THE US GDP IS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION THE BIG INCREASE IN TAXES IN RECENT YEARS IS BLAMED FOR THE RISE IN TAX EVASION IN PARTICULAR BLACK MARKET ACTIVITY SURGED AFTER A 7 VALUEADDED TAX WAS IMPOSED THREE YEARS AGO ON MOST GOODS AND SERVICES THE NEW LIBERAL PARTY GOVERNMENT WHICH TOOK OFFICE IN NOVEMBER HAS PROMISED TO REPLACE THE LEVY BUT HASN'T SAID WHAT FORM THE NEW TAX WILL TAKE IN RECENT HISTORY NO TAX MOVE HAS GENERATED AS MUCH RESENTMENT AS THE 1991 VAT SAYS PETER SPIRO AN ONTARIO GOVERNMENT ECONOMIST THE PROBLEM HAS CAUSED TAX REVENUE TO FALL FAR SHORT OF EXPECTATIONS THIS YEAR WORSENING THE DEFICIT PROBLEMS OF THE FEDERAL GOVERNMENT AND THE 10 PROVINCIAL GOVERNMENTS SOME ESTIMATES PUT THE GOVERNMENT REVENUE LOSS FROM TAX EVASION THIS YEAR AT ABOUT C20 BILLION US151 BILLION OR ALMOST HALF THE NATION'S PROJECTED BUDGET DEFICIT IN SOME INDUSTRIES UNDERTHETABLE PAYMENTS HAVE BECOME ROUTINE THE ONTARIO HOME BUILDERS ASSOCIATION ESTIMATED THAT MORE THAN 40 OF HOMERENOVATION WORK IN THE PROVINCE IS DONE FOR CASH TO AVOID TAXES AND OTHER LEVIES FOR PROGRAMS SUCH AS UNEMPLOYMENT AND HEALTH INSURANCE BY ESCAPING SUCH COSTS A BLACKMARKET CONTRACTOR CAN UNDERCUT THE PRICE OF A TAXPAYING CONTRACTOR BY AS MUCH AS 50 THE ASSOCIATION SAYS PHIL MCCOLEMAN A CONTRACTOR IN BRANTFORD ONTARIO SAYS CUSTOMERS TO SAVE MONEY HAVE BECOME WILLING ACCOMPLICES IN TAX CHEATING IF THEY SEE IT AS WRONG IT IS A LEGAL WRONG NOT A MORAL WRONG HE SAYS ONE IN FOUR CANADIANS NOW CONSIDER TAX CHEATING ACCEPTABLE ACCORDING TO A RECENT PUBLIC OPINION SURVEY IT ALSO FOUND THAT 30 SEE NOTHING WRONG WITH SMUGGLING MUCH OF THE ILLICIT ACTIVITY ISN'T FAR UNDERGROUND TAXFREE CIGARETTES AND LIQUOR MOSTLY SMUGGLED INTO CANADA FROM THE US ARE SOLD AT ABOUT HALF THE REGULAR PRICE FROM THE TAILGATES OF TRUCKS PARKED NEAR PLANTS AND STORES SMUGGLED CIGARETTES AND LIQUOR ARE ESTIMATED TO ACCOUNT FOR ABOUT A QUARTER OF THE CANADIAN MARKET LIQUOR SMUGGLING IS APPROACHING PROHIBITIONERA LEVELS WARNS ANDREW BRANDT HEAD OF THE ONTARIO GOVERNMENT'S LIQUOR RETAIL STORES CIGARETTE SMUGGLING HAS DRIVEN OUT OF BUSINESS MANY CONVENIENCE STORES WHICH HAD DEPENDED ON TOBACCO SALES TO SURVIVE BECKER MILK CO A MAJOR ONTARIO CONVENIENCE STORE OPERATOR HAS CLOSED 50 STORES BECAUSE OF A LOSS OF BUSINESS TO CIGARETTE SMUGGLERS MR ANDERSON THE REVENUE MINISTER SAYS THE FEDERAL GOVERNMENT IS EXAMINING A QUEBEC GOVERNMENT PROPOSAL THAT FEDERAL AND PROVINCIAL TOBACCO TAXES BE CUT TO MAKE SMUGGLING LESS PROFITABLE BUT WITH THE SMUGGLING BUSINESS NOW WELLESTABLISHED SOME ANALYSTS CONTEND THE TAX CUTS WOULD HAVE TO BE SIZABLE TO CURB THE ILLICIT TRADE MR ANDERSON SAYS SMUGGLING WOULD BE LESS ATTRACTIVE IF THE US CONGRESS APPROVED PROPOSED TOBACCO TAX INCREASES TO HELP FUND THE CLINTON ADMINISTRATION'S PLANNED HEALTH PROGRAM CANADIAN CIGARETTE TAXES AVERAGE FIVE TIMES HIGHER THAN US CIGARETTE TAXES SINCE THE VAT WAS APPLIED CASH TRANSACTIONS HAVE SURGED REFLECTING AN UPSWING IN UNDERTHETABLE ACTIVITY IN THE PAST THREE YEARS THE RATIO OF CASH HELD BY THE PUBLIC TO SPENDING HAS SHOWN ITS SHARPEST RISE IN AT LEAST 40 YEARS TAX EVADERS FAVOR CASH OVER CHECKS OR CREDIT CARDS BECAUSE CASH PAYMENTS ARE DIFFICULT TO TRACE IN CORNWALL AN ONTARIO HUB FOR TOBACCO SMUGGLING AUTO DEALERS REPORT SELLING NEW CARS FOR BUNDLES OF CASH AN ATTENDANT AT A CAR RENTAL OUTLET SAYS SMUGGLERS CARRY BIG ROLLS OF CASH THAT YOU'D NEVER BELIEVE LIKE THREE FOUR INCHES THICK ON THE OUTSIDE IT IS 20S IN THE CENTER ITS 100S AND 1000S 9401040135 940104 WHO'S NEWS EASTMAN KODAK CO EASTMAN KODAK CO ROCHESTER NY DAVID L FIEDLER 46 YEARS OLD WAS NAMED DIRECTOR OF INVESTOR RELATIONS OF THIS PHOTOGRAPHY AND HEALTH CONCERN MR FIEDLER SUCCEEDS TIMOTHY P COST 34 WHO LEFT TO BECOME SENIOR VICE PRESIDENT OF INVESTOR RELATIONS AND STRATEGIC OPERATIONS FOR CENTOCOR INC MR FIELDER WHO IS DIRECTOR OF FOREIGN EXCHANGE PLANNING TREASURER'S DIVISION BEGINS HIS APPOINTMENT JAN 17 9401040134 940104 TRACKING TRAVEL BY NEELA BANERJEE FOR THE ADVENTUROUS VACATIONER WHO'S DONE IT ALL AND SEEN IT ALL THE ARCTIC IS ONE OF THE LAST TRAVEL FRONTIERS IT'S A LITTLE BIT LIKE A NOTCH IN THE ADVENTURE BEDPOST SAYS RICK SWEITZER DIRECTOR OF NORTHWEST PASSAGE OUTING CLUB WHICH ORGANIZES TRIPS BY DOG TEAM AND SKI THERE'S AN AWFUL LOT OF MYSTERY AROUND THE POLE A HANDFUL OF COMPANIES OFFER VOYAGES THAT RANGE FROM RUGGED TO CUSHY TOUR OPERATORS SAY THE MARKET IS STILL SMALL BUT INTEREST HAS BEEN CONSISTENTLY STRONG DESPITE PRICES OF 17000 TO 25000 FOR TWO WEEKS WE CAN'T OFFER ENOUGH BERTHS SAYS JAMES GALLAGHER OF QUARK EXPEDITIONS OF DARIEN CONN WHICH RUNS CRUISES FOR 100 ON A RUSSIAN NUCLEARPOWERED ICE BREAKER TRIPS ARE SCHEDULED IN LATE SPRING AND EARLY SUMMER WHEN THE TEMPERATURE HOVERS AROUND 32 DEGREES BUT PROSPECTIVE TRAVELERS MUST PASS INSPECTION BEFORE SHIPPING OUT ARCTIC ODYSSEYS OF MEDINA WASH INTERVIEWS CLIENTS TO MAKE SURE THEY'RE FLEXIBLE ABOUT THE FREQUENT WEATHERRELATED DELAYS NORTHWEST PASSAGE IN WILMETTE ILL HAS A SHAKEDOWN EXPEDITION IN NORTHERN MINNESOTA WHEN EVERYONE MUST JUMP INTO WATER THROUGH A HOLE IN THE ICE CANADIAN HIGH ARCTIC INTERNATIONAL EXPLORER SERVICES LTD AND ARCTIC ODYSSEYS ORGANIZE TRIPS BY AIR ARCTIC ODYSSEYS ADVENTURERS GO FROM MONTREAL TO RESOLUTE BAY CANADA A SKI PLANE TAKES THEM TO AN ARCTIC ICE FIELD FOR A 45MINUTE STOP AND THEN HOPS OVER TO GREENLAND NORTHWEST PASSAGE'S DOZEN HARDY TRAVELERS ARE AIRDROPPED ABOUT 150 MILES FROM THE POLE THEY DRIVE A DOG SLED AND CROSSCOUNTRY SKI COVERING FIVE TO 18 MILES DAILY ON THE JAGGED TERRAIN QUARK'S ICE BREAKER COMPLETE WITH SAUNA AND AUSTRIAN CHEFS SAILS FROM THE RUSSIAN PORT OF MURMANSK TO VARIOUS ISLANDS BEFORE STOPPING AT THE POLE TO CELEBRATE WITH CHAMPAGNE AND A BARBECUE HOTEL SECURITY IS THE PRIME CONCERN FOR PLEASURE TRAVELERS ACCORDING TO A SURVEY IN THE 1994 RY&P/YANKELOVICH PARTNERS NATIONAL TRAVEL MONITOR EIGHTY PERCENT OF 850 RESPONDENTS SAID THE SAFETY OF A HOTEL AND DESTINATION WAS CRITICAL TO ENJOYING A TRIP AND AFTER FOCUS BY THE MEDIA THE HOTEL INDUSTRY SEEMS TO BE TUNING IN TO THAT HOTELS WILL DO ANYTHING TO KEEP OUT OF THE PAPERS SAYS LARRY CHERVENAK PRESIDENT OF HOTEL SECURITY CONSULTANTS CHERVENAK KEANE & CO THERE HAS BEEN A CONSPIRACY OF SILENCE BUT NOW HOTELS ARE DOING SOMETHING ABOUT SECURITY THE AMERICAN HOTEL & MOTEL ASSOCIATION A TRADE GROUP SAYS IT HAS NO STATISTICS ON HOTEL CRIME HOTELS RELY ON MORE SOPHISTICATED TECHNOLOGY TO IMPROVE SECURITY MANY MAJOR CHAINS ARE REPLACING KEY LOCKS WITH ELECTRONIC ONES GUESTS SWIPE THE MAGNETIC STRIPE OF THE KEY CARD THROUGH A WALL SCANNER TO OPEN ROOM DOORS HOTELS CAN CHANGE THE CODE AT A CENTRAL COMPUTER AND SOME SCANNERS TRACK WHEN THE DOOR WAS OPENED CRITICAL WHEN CONSIDERING THAT 70 OF HOTEL CRIMES OCCUR IN ROOMS MR CHERVENAK SAYS ITT CORP UNIT ITT SHERATON SAYS 75 OF ITS HOTELS HAVE ELECTRONIC LOCKS BUT HOTELIERS STRESS THAT HIGH TECHNOLOGY ISN'T ENOUGH TO COMBAT CRIME THE HOTEL TRADE GROUP UNDERWRITES SEMINARS ON TRAINING HOTEL STAFF ON SECURITY AND CREATED A SAFETYTIP SHEET AND A PUBLICSERVICE ANNOUNCEMENT FOR INHOUSE TELEVISION SYSTEMS NO ONE THING IS GOING TO MAKE YOUR HOTEL SAFE AND SECURE SAYS DICK HUDAK DIRECTOR OF CORPORATE SECURITY AT ITT SHERATON YOU NEED OVERLAPPING SYSTEMS TO ENSURE SECURITY THE SATELLITE TECHNOLOGY THAT GUIDED SMART BOMBS DURING THE GULF WAR HAS BEEN HARNESSED TO HELP SAILORS HIKERS AND MOUNTAINEERS WITH NAVIGATION ADVENTURERS CAN TURN TO HANDHELD RECEIVERS THAT RELY ON THE GLOBAL POSITIONING SYSTEM AND DISPLAY LONGITUDE LATITUDE AND ALTITUDE SUPPOSEDLY PRECISE WITHIN A FEW FEET ROCKWELL INTERNATIONAL CORP DEVELOPED GPS FOR THE DEFENSE DEPARTMENT BUT OVER THE PAST THREE YEARS ROCKWELL AND OTHERS HAVE MAPPED OUT GPS APPLICATIONS IN EVERYDAY LIFE ROCKWELL SAYS ABOUT 25 OF ITS SALES OF GPS TECHNOLOGY ARE FOR COMMERCIAL USE COMPARED WITH 10 A FEW YEARS AGO SUCH COMPANIES AS TRIMBLE NAVIGATION AND MAGELLAN SYSTEMS CORP INTRODUCED HANDHELD RECEIVERS THIS YEAR THAT RETAIL FOR 500 TO 800 AND WEIGH ABOUT ONE POUND MANUFACTURERS ARE AGGRESSIVELY ADVERTISING IN OUTDOOR SPORTS AND MARITIME MAGAZINES GARY ROSE PRODUCT MANAGER OF RECREATION EQUIPMENT INC WHICH SELLS TRIMBLE RECEIVERS SAYS GPS COULD BE USED BY BACKCOUNTRY SKIERS MOUNTAIN CLIMBERS IN REMOTE AREAS OR CANOERS YOU COULD EVEN FIND A SPOT IN A LAKE WHERE THERE'S REALLY GOOD FISHING AND PROGRAM THE RECEIVER TO GUIDE YOU BACK GPS RELIES ON 24 DEFENSE SATELLITES THAT SEND RADIO SIGNALS SIMULTANEOUSLY FROM SIX ORBITS PARALLEL WITH THE EQUATOR THE RECEIVERS TAKE SIGNALS TRANSMITTED BY FIVE SATELLITES AND BY USING ALGORITHMS TRANSLATE THEM INTO POINTS OF LATITUDE LONGITUDE AND ALTITUDE DISPLAYED ON A LIQUIDCRYSTAL SCREEN FOR EXAMPLE HIKERS CAN TAKE FIXES ALONG A ROUTE TO DETERMINE THEIR COORDINATES AND STORE THEM IN THE RECEIVER'S MEMORY THEY CAN USE THE WAYPOINTS TO RETRACE THEIR STEPS THE RECEIVER INDICATES IF THEY DEVIATE FROM THE PATH FOR COFFEE SNOBS WHO FIND THEMSELVES AL FRESCO GSI SPORTS PRODUCTS INC MAKES A ONECUP MINIESPRESSO MACHINE THAT FITS ON CAMP STOVES AND PUMPS OUT GOURMET JOE IN 90 SECONDS JANE AND MICHAEL STERN'S WAY OUT WEST DEVOTES A CHAPTER TO 25 UNNATURAL WONDERS OF THE WESTERN ROADSIDE THEY INCLUDE THE ROY ROGERSDALE EVANS MUSEUM WHERE TRIGGER AND BULLET THE WONDER DOG ARE TAXIDERMIZED IN ALL THEIR FORMER GLORY AND BIG PILE OF BONES OUTSIDE DIXON NM WHERE ONE CAN FIND LONGHORNS FOR THE CAR OR CATTLE SKULLS FOR THE PORCH ALL PICKED CLEAN AND GLEAMING WHITE 9401040133 940104 BUSINESS BRIEF STANFORD TELECOMMUNICATIONS INC COMPANY EXPECTS FLAT NET FOR FISCAL THIRD QUARTER STANFORD TELECOMMUNICATIONS INC SUNNYVALE CALIF SAID IT EXPECTS FISCAL THIRDQUARTER NET INCOME TO BE FLAT FROM A YEAR EARLIER WHEN IT POSTED PROFIT OF 630000 OR 13 CENTS A SHARE THE TELECOMMUNICATIONS COMPANY ALSO SAID IT EXPECTS TO POST SLIGHTLY HIGHER REVENUE FOR THE PERIOD ENDED DEC 31 THAN THE 216 MILLION IT REPORTED A YEAR AGO THE COMPANY SAID THE RESULTS WERE CAUSED BY A DECLINE IN MILITARY REVENUE AND A SHIFT TOWARD COMMERCIAL BUSINESS 9401040132 940104 PROPOSED RULE ON MUNI DEALERS' GIFTS TO OFFICIALS WILL EXCLUDE FEDERAL RACES BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MUNICIPAL SECURITIES RULEMAKING BOARD'S PROPOSED RULE TO COMBAT MUNICIPALBOND DEALERS' PAYTOPLAY POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS WON'T COVER CANDIDATES FOR FEDERAL OFFICE THE RULE DOES NOT COVER CONTRIBUTIONS MADE TO A FEDERAL ELECTION CHRISTOPHER TAYLOR MSRB EXECUTIVE DIRECTOR SAID IN AN INTERVIEW THE CLARIFICATION COULD DEFUSE SOME OF THE STATELOCAL HOSTILITY TOWARD THE PROPOSED RULE SOME STATE AND LOCAL CRITICS HAVE COMPLAINED THAT THE PROPOSAL COULD DISADVANTAGE STATE AND LOCAL OFFICIALS RUNNING FOR NATIONAL OFFICE PARTICULARLY IF THEY WERE CHALLENGING MEMBERS OF CONGRESS THE CRITICS ARGUE THAT THE RULES WOULD CONSTRAIN LOCAL OFFICIALS' ABILITY TO TAP THE BOND COMMUNITY FOR FUNDS WHILE LEAVING INCUMBENT LAWMAKERS OR OTHER OPPONENTS FREE TO TAKE POLITICAL GIFTS FROM WALL STREET UNDER THE MSRB'S PROPOSAL A BOND DEALER COULDN'T DO BUSINESS WITH A JURISDICTION WITHIN TWO YEARS OF WHEN THE DEALER ITS POLITICAL ACTION COMMITTEE OR ITS MUNI PROFESSIONALS CONTRIBUTED TO AN OFFICIAL OF THE JURISDICTION THE MSRB ANNOUNCED THE OUTLINES OF ITS PROPOSAL SOME WEEKS AGO BUT THE DETAILS WON'T BE MADE PUBLIC UNTIL THE RULE IS SENT TO THE SECURITIES AND EXCHANGE COMMISSION FOR CONSIDERATION IN A WEEK OR TWO CONTROVERSY HAS ENVELOPED THE PROPOSAL AS IT AWAITS TRANSMISSION TO THE SEC A COALITION OF EIGHT MAJOR STATE AND LOCAL ORGANIZATIONS RECENTLY ASKED THE SEC TO DEFER ACTION ON THE PROPOSAL ONE GROUP THE NATIONAL LEAGUE OF CITIES SAID THE RULE WOULD IMPOSE SEVERE AND DISCRIMINATORY HARDSHIPS ON ANY STATE OR LOCAL OFFICIAL WHO SOUGHT TO RUN FOR FEDERAL OFFICE AGAINST AN INCUMBENT AND URGED THE SEC TO DEFER ACTION UNTIL AFTER NEXT YEAR'S ELECTIONS SEC CHAIRMAN ARTHUR LEVITT SAID CALLS FOR DELAY REFLECT A MISUNDERSTANDING OF THE PROBLEM AND OF THE PROPOSED SOLUTION FRANK SHAFROTH HEAD LOBBYIST FOR THE LEAGUE OF CITIES SAID THE CLARIFICATION DESCRIBED BY MR TAYLOR HELPS THE NUMEROUS STATE AND LOCAL OFFICIALS WHO WILL BE RUNNING FOR NATIONAL OFFICE NEXT YEAR BUT DOESN'T CHANGE THE DOUBLE STANDARD SEPARATELY ANOTHER MUNI UNDERWRITER JOINED A VOLUNTARY BAN ON POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS BRINGING THE NUMBER OF PARTICIPATING FIRMS TO 52 THE NEWEST PARTICIPANT WAS IDENTIFIED BY THE SEC AS JJB HILLIARD WL LYONS INC A LEADING REGIONAL FIRM WITH HEADQUARTERS IN LOUISVILLE KY SEC CHAIRMAN LEVITT WHO UNVEILED THE VOLUNTARY INITIATIVE IN OCTOBER ALONG WITH PRIMERICA VICE CHAIRMAN FRANK ZARB HAS PLEDGED TO SPREAD THE PRINCIPLES OF THE VOLUNTARY BAN TO OTHER SEGMENTS OF THE MUNI INDUSTRY AND IS EXPECTED TO UPDATE HIS PLANS IN THIS REGARD IN A SPEECH IN NEW YORK THIS MONTH SEC COMMISSIONER RICHARD ROBERTS PRAISED ALMOST ALL THE MAJOR PLAYERS IN THE MUNICIPALBOND BUSINESS FOR JOINING THE VOLUNTARY BAN SAYING I PERSONALLY FIND IT EXEMPLARY HE SAID THAT IT MAY BE A MEATCLEAVER APPROACH BUT A LOT OF FIRMS CLEARLY WANT TO TAKE THE HIGH GROUND AND DISPEL THE PERCEPTION THAT POLITICAL CONTRIBUTIONS TO STATE AND LOCAL OFFICIALS ARE USED TO BUY BOND BUSINESS 9401040131 940104 LEISURE & ARTS IN CONCERT AND ON DISK THE NEW' BOULEZ BY MARK SWED CHICAGO WHENEVER PIERRE BOULEZ IS WRITTEN ABOUT THESE DAYS IT SEEMS THAT HE CANNOT AVOID BEING COMPARED WITH HIS FORMER SELF THAT IS PARTLY BECAUSE THE FORMER MR BOULEZ REALLY WAS A DRAMATIC FIGURE AS A COMPOSER AND CONDUCTOR FANATICALLY DETERMINED TO REFASHION MUSIC INTO HIS OWN PARTICULAR BRAND OF RADICAL MODERNISM HE WAS ONCE AMONG THE MOST INTIMIDATING PRESENCES IN THE MUSICAL WORLD IT WAS HARD TO SAY WHICH WAS MORE ALARMING HIS ACUTE EAR ACID TONGUE POISON PEN FORMIDABLE INTELLECT DAUNTINGLY COMPLEX MUSIC OR SUPPOSEDLY CHILLY PERSONALITY NOW MR BOULEZ WHO IS 68 SEEMS TO INSPIRE NOTHING BUT LOVE ORCHESTRAS LOVE HIS SUPPORTIVE BEAT STUDENTS LOVE HIS WISDOM AND WIT JOURNALISTS LOVE HIS CANDOR AND CLEVERNESS PUBLICISTS LOVE HIS ACCESSIBILITY AND LACK OF PRETENSE RECORD COMPANIES LOVE HIS EFFICIENCY AS DO ORCHESTRAS AND ORCHESTRA MANAGERS AND AUDIENCES MOSTLY LOVE THE STARTLING CLARITY AND BEAUTY OF THE SOUND HE GETS FROM AN ORCHESTRA INDEED THE ONLY CRITICISM ONE HEARS NOW IS THAT MR BOULEZ HAS BECOME IF ANYTHING TOO COMPLACENT THAT HIS NEW RECORDINGS AND HIS LATEST MUSIC HAVE LOST JUST THAT EDGE THAT EVERYONE USED TO COMPLAIN ABOUT ON THE SURFACE MR BOULEZ DOES SEEM DIFFERENT WHEN USHERED INTO HIS DRESSING ROOM AT ORCHESTRA HALL HERE RECENTLY I WAS TOLD HE HAD FINISHED HIS REHEARSAL WITH THE CHICAGO SYMPHONY ORCHESTRA EARLY AND WAS JUST SITTING THERE HAPPY AS A CLAM AND SURE ENOUGH THAT IS JUST HOW MR BOULEZ APPEARED A MARVELOUS STORYTELLER PERFECTLY WILLING TO CHAT ABOUT ANYTHING MOREOVER HIS PERFORMANCE OF MAHLER'S SIXTH SYMPHONY WITH THE CHICAGO SYMPHONY WAS CERTAINLY LESS TERRIFYING AND MORE BRILLIANT THAN THE BRUTALLY INTENSE LIVE PERFORMANCE MR BOULEZ GAVE OF THE SAME WORK WITH THE BBC SYMPHONY ORCHESTRA 20 YEARS AGO AS CAN BE HEARD IN A DIMSOUNDING RECORDING OF A LIVE PERFORMANCE RECENTLY ISSUED ON CD BY THE ITALIAN LABEL ARTISTS LIVE RECORDINGS BUT IS MR BOULEZ WHO NO LONGER DOMINATES THE FRENCH MUSIC SCENE AS HEAD OF THE RESEARCH INSTITUTE IRCAM OR THE CRACK ENSEMBLE INTERCONTEMPORAIN REALLY ALL THAT CHANGED TO HEAR HIM TELL IT HE'S SIMPLY OLDER SMARTER BETTER AT WHAT HE DOES AND SO HE CAN MAYBE RELAX A LITTLE IN FACT WHAT MAKES MR BOULEZ SO INTERESTING IS THAT HE HAPPENS TO BE ONE OF THE MOST CONSISTENT MUSICIANS IN HISTORY MR BOULEZ KNEW WHAT HE WANTED FROM THE TIME HE WAS A VERY YOUNG MAN AND HE HAS WORKED SINGLEMINDEDLY TO REALIZE IT EVER SINCE CERTAINLY HIS STAMP ON THE TWO MAHLER PERFORMANCES IS UNMISTAKABLE IN BOTH MR BOULEZ DIRECTS A LISTENER'S ATTENTION TO THE MOST PROGRESSIVE QUALITIES OF THE SYMPHONY WHERE OTHER CONDUCTORS WILL TRY TO CAPTURE SOME GENERALIZED EMOTIONAL ASPECT OF THE WORK MR BOULEZ ZEROS IN ON MUSICAL DETAIL AND LETS IT SPEAK FOR ITSELF THE DIFFERENCE BETWEEN MR BOULEZ IN 1973 AND MR BOULEZ TODAY IS THAT HE NOW KNOWS HOW TO MAKE A LISTENER REALLY FEEL AS IF HE IS INSIDE THE MUSIC WITH NOTHING BEING FORCED ANOTHER DIFFERENCE IS THE LEVEL OF THE PLAYING MR BOULEZ HAS ALWAYS BEEN ABLE TO ELICIT ACCURATE PLAYING FROM JUST ABOUT ANY GROUP OF COMPETENT MUSICIANS BUT THESE DAYS HE WORKS WITH ONLY A HANDFUL OF THE BEST ORCHESTRAS INCLUDING THE CHICAGO SYMPHONY MR BOULEZ NOW SPENDS A MONTH ANNUALLY HERE AND IT SHOWS JOHN VON RHEIN THE MUSIC CRITIC OF THE CHICAGO TRIBUNE RECENTLY OBSERVED THAT THE ORCHESTRA PLAYS FOR BOULEZ AS IT PLAYS FOR NO OTHER GUEST CONDUCTOR EVIDENCE OF THAT CAN BE FOUND ON A NEW DEUTSCHE GRAMMOPHON CD OF MR BOULEZ'S PERFORMANCE OF STRAVINSKY'S FIREBIRD WHICH BOASTS ORCHESTRAL PLAYING FROM THE CHICAGO SYMPHONY AS ALLURING AND ACCOMPLISHED AS ANY EVER COMMITTED TO DISK AS A COMPOSER HE LOOKS EVEN MORE CONSISTENT DESPITE THE APPARENTLY DRAMATIC DIFFERENCE BETWEEN THE SHEER DOGMATISM OF HIS SERIAL WORKS IN THE 1950S AND THE RICHER FREER MUSIC HE WRITES TODAY THIS IS POSSIBLE BECAUSE MR BOULEZ HAS BEEN WORKING ON MANY OF THE SAME SCORES FOR MANY YEARS BEFORE TRAVELING TO CHICAGO MR BOULEZ APPEARED AT CARNEGIE HALL IN NEW YORK FOR THE PREMIERE OF THE LATEST VERSION OF EXPLOSANTE/FIXE WHICH INVOLVES A HIGHLY SOPHISTICATED COMPUTER HOOKUP WHEN HE FIRST BEGAN THE SCORE IN 1972 IT WAS A TINY PIECE FOR FLUTE AND A FEW INSTRUMENTS NOW IT HAS GROWN TO A MAJOR WORK FOR A SOLO FLUTE ECHOED BY TWO SUBSIDIARY FLUTES AND A LARGE ENSEMBLE ALONG WITH ELECTRONICS THAT SUBTLY ENHANCE THE SOUNDS PRODUCED BY THE LIVE PLAYERS MR BOULEZ CLAIMS THAT HE ENVISAGED THE PIECE THIS WAY ALL ALONG IT IS ONLY NOW THAT THE EQUIPMENT IS FLEXIBLE ENOUGH AND HIS OWN SKILL PROFICIENT ENOUGH FOR HIM TO REALIZE THIS VISION FOR MR BOULEZ COMPOSITION AS WELL AS ALL OTHER ASPECTS OF MUSIC MAKING IS AN ORGANIC PROCESS THAT IS CONTINUALLY BEING REFINED AND HIS JOURNEY AS A COMPOSER AND CONDUCTOR HAS BEEN TO GENERATE UNPRECEDENTED SONIC FLEXIBILITY OF COURSE MR BOULEZ DOES ACTUALLY FINISH SOME PIECES LE VISAGE NUPTIAL WHICH WILL HAVE ITS AMERICAN PREMIERE THIS SPRING WHEN MR BOULEZ APPEARS WITH THE LOS ANGELES PHILHARMONIC IS AT LAST FINISHED FINISHED FINISHED HE SAYS BUT IT TOOK MORE THAN 40 YEARS FOR HIM TO COMPLETE THIS VERY SENSUOUS SCORE BASED ON RENE CHAR'S EROTIC SURREALIST POETRY WHEN I PUT IT ON PAPER IN 1946 IT WAS FOR ONE VOICE AND FOUR INSTRUMENTS MR BOULEZ RECALLS GOING BACK TO IT IN '53 I THOUGHT IT NEEDED A BIGGER BODY OF SOUND TO EXPRESS WHAT I WANT BUT WHEN I DID IT I WAS IN A VERY AUSTERE PHASE AND I FORCED THE SCORE INTO A KIND OF STRAITJACKET I WAS VERY INEXPERIENCED IN ORCHESTRATION AND AT THE SAME TIME I WAS VERY DOGMATIC AND FINALLY IT WAS NOT POSSIBLE TO REALIZE IT CORRECTLY HE PERFORMED IT IN 1957 AND THEN PLANNED TO DO IT AGAIN 10 YEARS LATER BUT STOPPED AFTER ONE REHEARSAL I THOUGHT NO THAT'S NOT POSSIBLE I MUST DO IT AGAIN' WITH THE FREEDOM I HAVE ACQUIRED AND THE EXPERIENCE THROUGH CONDUCTING I WENT BACK TO IT WITH LESS AUSTERITY AND ON THE CONTRARY I EXPANDED THE WORK QUITE A LOT AND FOR QUITE A LONG TIME FINALLY IN 1989 HE HAD THAT FINISHED SCORE THE REMARKABLE POINT TO THIS STORY IS THAT THE FINISHED PIECE RETAINS WHAT MR BOULEZ CALLS THE SAME FRAME OF ACTION THAT IT HAD IN 1946 THE FORM WAS THERE AND I COULD NOT DESTROY THE FORM BECAUSE IT WAS FOR ME THE RIGHT FORM ONLY IT WAS EXPANDED AND ALSO ALL THE WRITING IS MUCH MORE COMPLEX MUCH MORE ELABORATE AND OH YES DEFINITELY DEFINITELY MORE SENSUAL I THINK I HAVE MADE PROGRESS IN THIS SENSE 9401040130 940104 TECHNOLOGY & MEDICINE FDA CLEARS J&J SCHIZOPHRENIA DRUG BUT CURBS CLAIMS OF SUPERIOR VALUE BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL JOHNSON & JOHNSON SAID IT WON FEDERAL APPROVAL FOR ITS SCHIZOPHRENIA DRUG RISPERDAL WHICH HAS CAUSED A STIR AMONG DOCTORS AND PATIENTS SEEKING NEW TREATMENTS FOR ONE OF THE MOST DEVASTATING AND EXPENSIVE OF ALL ILLNESSES OFFICIALS OF THE HEALTH CARE CONCERN'S JANSSEN PHARMACEUTICA UNIT SAID THEY HAVE AMBITIOUS PLANS FOR RISPERDAL TO BECOME A FIRSTLINE DRUG FOR THE NATION'S TWO MILLION SCHIZOPHRENIA PATIENTS BUT THE FOOD AND DRUG ADMINISTRATION EXPLICITLY FORBADE JANSSEN TO CLAIM RISPERDAL IS SUPERIOR TO OTHER DRUGS CALLING JANSSEN'S RESEARCH INCONCLUSIVE ON THAT POINT PSYCHIATRISTS AND FAMILIES OF SCHIZOPHRENICS HAVE BEEN CLOSELY TRACKING RISPERDAL'S DEVELOPMENT BECAUSE CURRENT TREATMENTS ARE SO OFTEN INADEQUATE SOME 15 TO 30 OF PATIENTS RESIST ALL TREATMENTS AND AN ESTIMATED 70 REMAIN TOO AFFLICTED TO WORK OR LEAD A NORMAL LIFE THE RESULT SCHIZOPHRENIA PATIENTS ACCOUNT FOR ABOUT 25 OF ALL HOSPITAL BEDS AND AN UNTOLD HUGE SEGMENT OF THE NATION'S CHRONICALLY HOMELESS POPULATION JOHNSON & JOHNSON YESTERDAY CITED AN ESTIMATE THAT THE DISEASE COSTS 33 BILLION ANNUALLY IN THE US SANDOZ AG'S CLOZARIL INTRODUCED IN 1990 WAS HAILED AS A BREAKTHROUGH FOR ITS ABILITY TO RELEASE PATIENTS FROM CRIPPLING PSYCHOSIS AND PARANOIA BUT THE DRUG HAS DRAWN FIRE FOR ITS STEEP PRICE AND A POTENTIALLY FATAL SIDE EFFECT THAT REQUIRES PATIENTS TO TAKE A WEEKLY BLOOD TEST JANSSEN SAID RISPERDAL HAS A SIMILAR MECHANISM TO CLOZARIL WHICH WORKS ON THE CRUCIAL BRAIN CHEMICALS SEROTONIN AND DOPAMINE BUT JANNSEN SAID RISPERDAL DOESN'T HAVE SIDE EFFECTS THAT REQUIRE BLOOD MONITORING IT SAID THE DRUG DUE TO BECOME AVAILABLE IN FEBRUARY WILL COST 1900 TO 2400 FOR A YEAR'S DOSE A TYPICAL YEAR'S DOSE OF CLOZARIL COSTS ABOUT 4160 AND THE REQUIRED BLOOD TEST COSTS ANOTHER 300 TO 3000 PER YEAR JANSSEN SAID YESTERDAY THOSE ADVANTAGES COULD MAKE RISPERDAL A WIDELY USED DRUG ON SCHIZOPHRENIA'S FRONT LINES WE THINK THAT IT COULD REPLACE HALOPERIDOL AS THE GOLD STANDARD FOR TREATING PSYCHOTIC DISORDERS SAID RICHARD MEIBACH JANSSEN'S DIRECTOR OF CLINICAL RESEARCH ONE PSYCHIATRIST WHO STUDIED RISPERDAL RICHARD BORISON OF THE MEDICAL COLLEGE OF GEORGIA SAID HIS RESEARCH FOUND IT TREATED SCHIZOPHRENIA'S DELUSIONS BETTER THAN HALOPERIDOL ONE OF THE MOST WIDELY USED ANTIPSYCHOTIC DRUGS BUT FDA OFFICIALS FOUND FAULT WITH JANSSEN'S RESEARCH COMPARING RISPERDAL TO HALOPERIDOL MADE BY VARIOUS COMPANIES AND KNOWN AS HALDOL AND OTHER BRAND NAMES DENNIS CHARNEY A YALE UNIVERSITY PSYCHIATRIST ON THE FDA ADVISORY COMMITTEE THAT ASSESSED RISPERDAL SAID IT WASN'T CLEAR JANSSEN'S RESEARCH COMPARED THE DRUG TO PROPER DOSES OF HALOPERIDOL IT'S A GOOD ANTIPSYCHOTIC ITS SIDEEFFECT PROFILE IS VERY FAVORABLE I EXPECT IT'LL BE WIDELY USED AND THE STUDIES NOW ONGOING TO SEE WHETHER IT'S BETTER THAN CURRENT DRUGS ARE VERY WORTHWHILE DR CHARNEY SAID SOME 48000 PATIENTS CURRENTLY USE CLOZARIL RISPERDAL'S MARKET COULD BE WIDER AS CLOZARIL IS RESTRICTED TO PATIENTS WHO HAVE RESISTED OTHER DRUGS PSYCHIATRISTS SAID THERE HAVEN'T BEEN CONCLUSIVE STUDIES COMPARING RISPERDAL AND CLOZARIL PATIENT GROUPS APPLAUDED THE APPROVAL OF RISPERDAL ALSO KNOWN AS RISPERIDONE BECAUSE THERE'S STILL SO MUCH TO BE LEARNED ABOUT THIS DISORDER SOME PEOPLE WILL RESPOND TO ONE MEDICATION SOME WILL RESPOND TO ANOTHER AND SOME DON'T RESPOND TO ANY THIS NEW DRUG MEANS A WHOLE NEW GROUP OF PEOPLE WILL HAVE AN OPPORTUNITY TO RETURN TO PRODUCTIVE LIFE SAID LAURIE FLYNN EXECUTIVE DIRECTOR OF THE NATIONAL ALLIANCE FOR THE MENTALLY ILL ELI LILLY & CO AND SEVERAL OTHER COMPANIES CURRENTLY HAVE SCHIZOPHRENIA DRUGS IN ADVANCED STAGES OF RESEARCH JOHNSON & JOHNSON SHARES CLOSED YESTERDAY AT 4525 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9401040129 940104 DAUPHIN COMPLETES ACQUISITION HARRISBURG PA DAUPHIN DEPOSIT CORP SAID IT COMPLETED ITS ACQUISITION OF VALLEY BANCORP INC FOR ABOUT 65 MILLION IN DAUPHIN COMMON STOCK UNDER THE AGREEMENT 214 SHARES OF DAUPHIN COMMON STOCK WERE TO BE EXCHANGED FOR EACH SHARE OUTSTANDING OF VALLEY COMMON THERE ARE 12 MILLION SHARES OF VALLEY COMMON OUTSTANDING AND DAUPHIN SAID THAT AS PART OF THE TRANSACTION IT WILL ISSUE ABOUT 26 MILLION NEW SHARES DAUPHIN CLOSED YESTERDAY IN NASDAQ STOCK MARKET TRADING AT 25 DOWN 25 CENTS BASED IN CHAMBERSBURG PA VALLEY HAS 330 MILLION IN ASSETS AND 13 OFFICES IN FRANKLIN COUNTY DAUPHIN A BANK HOLDING COMPANY BASED HERE HAS 48 BILLION IN ASSETS 9401040128 940104 MALAYSIA RAISES ITS REQUIREMENT FOR BANK RESERVES BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA MALAYSIA'S CENTRAL BANK INCREASED ITS RESERVE REQUIREMENT IN AN EFFORT TO RESTRAIN CONSUMER SPENDING RESIST INFLATIONARY PRESSURE AND MOP UP EXCESS LIQUIDITY IN THE FINANCIAL SYSTEM BANK NEGARA WHICH ANNOUNCED THE WIDELY ANTICIPATED MOVE MONDAY RAISED THE RESERVE REQUIREMENT TO 95 FROM 85 OF BANKS' TOTAL LIABILITIES EFFECTIVE IMMEDIATELY THE REQUIREMENT STIPULATES THE PERCENTAGE OF DEPOSITS THAT THE COUNTRY'S COMMERCIAL BANKS FINANCE COMPANIES AND MERCHANT BANKS MUST SET ASIDE ACCRUING NO INTEREST IN THEIR VAULTS OR WITH THE CENTRAL BANK BANK NEGARA SAID THE INCREASE WILL REMOVE 15 BILLION MALAYSIAN DOLLARS US557 MILLION IN EXCESS LIQUIDITY FROM THE FINANCIAL SYSTEM CURRENTLY AWASH IN FOREIGN FUNDS ATTRACTED BY RELATIVELY HIGH INTEREST RATES A BUOYANT STOCK MARKET AND THE STABLE MALAYSIAN DOLLAR SUCH A MOVE SPARES BANK NEGARA FROM HAVING TO ABSORB THE ADDITIONAL FUNDS ITSELF SHIFTING THE BURDEN TO PRIVATELY OWNED INSTITUTIONS THE INCREASE IN THE RESERVE REQUIREMENT IS NECESSARY TO FURTHER ABSORB A LARGE AMOUNT OF EXCESS LIQUIDITY QUICKLY AND TO ENSURE THAT THIS AMOUNT REMAINS IMMOBILIZED FOR A LONGER PERIOD BANK NEGARA EXPLAINED AT THE SAME TIME THE INCREASE REFLECTS THE CLEAR COMMITMENT OF THE CENTRAL BANK IN COMBATING INFLATIONARY TENDENCIES AND TO CONTAIN THE GROWTH IN MONEY SUPPLY WITHIN PRUDENT BOUNDS IN ORDER NOT TO FAN THE EMBERS OF INFLATION SPECULATION OF A RISE IN THE RESERVE REQUIREMENT HAS BEEN CIRCULATING FOR SEVERAL WEEKS THE REQUIREMENT WAS LAST INCREASED IN APRIL 1992 THE LATEST INCREASE IS LIKELY TO HOLD INTEREST RATES NEAR THEIR CURRENT LEVELS THOUGH FINANCIAL ANALYSTS STILL EXPECT RATES TO DECLINE SLIGHTLY IN THE WEEKS AHEAD AS OF FRIDAY THE BASE LENDING RATE OFFERED BY MALAYSIAN BANKS TO THEIR MOST CREDITWORTHY CUSTOMERS RANGED FROM 78 AT MALAYAN BANKING BHD THE COUNTRY'S LARGEST BANK TO ABOUT 88 AT SMALLER BANKS THE HIGHER REQUIREMENT ALSO IS EXPECTED TO PINCH BANK PROFITS THIS YEAR AS MORE FUNDS MUST BE LEFT IDLE BUT THE BANKS CAN WELL AFFORD IT SAID LUM MING JANG AN INVESTMENT ANALYST AT PHILEO PEREGINE SECURITIES WHO NOTED THAT MOST BANKS ARE REPORTING OR ARE EXPECTED TO REPORT ROBUST EARNINGS FOR 1993 AND 1994 BANK NEGARA ARGUED THAT IT IS TIME FOR THE COUNTRY'S FINANCIAL INSTITUTIONS TO ASSIST THE CENTRAL BANK IN ITS EFFORTS TO ABSORB LIQUIDITY AND TO MAINTAIN PRICE STABILITY FOR THE PAST 20 MONTHS THE CENTRAL BANK HAS RELIED MOSTLY ON ITS OWN MONETARY OPERATIONS TO HANDLE THE DAUNTING TASK BANK NEGARA NOTED THAT MALAYSIA'S MONEYSUPPLY FIGURES HAVE BEEN RACING BEYOND THE CENTRAL BANK'S TARGETS SIGNALING THE THREAT OF HIGHER INFLATION M1 A MONEYSUPPLY MEASURE COMPRISING CHECKINGACCOUNT DEPOSITS AND CASH GREW 31 YEAR TO YEAR IN OCTOBER WHILE TWO BROADER CATEGORIES OF MONEY INCREASED 218 AND 244 IN THE SAME MONTH CONSUMER PRICES INCREASED 35 IN OCTOBER FROM THE YEAREARLIER LEVEL COMPARED WITH 29 IN SEPTEMBER AND 28 IN AUGUST FOR ALL OF 1993 MALAYSIA'S FINANCE MINISTRY FORECASTS INFLATION OF 38 BUT PRIVATE ECONOMISTS PREDICT RATES DOUBLE THAT IN THE COUNTRY'S BOOMING CITIES 9401040127 940104 REVIEW & OUTLOOK EDITORIAL ASIDES CLINTONS' HOLD BUTTON IT TURNS OUT THAT THE CLINTONS' VOLUNTARY TURNOVER OF ARKANSAS BUSINESS DOCUMENTS TO THE JUSTICE DEPARTMENT WILL HAVE TO WAIT FOR PERHAPS TWO WEEKS UNTIL THEIR LAWYERS CATALOG THE MATERIAL THE WHITE HOUSE ANNOUNCED YESTERDAY SOMETHING ABOUT THERE BEING SO MUCH STUFF AND WANTING TO MAKE ONE FINAL SWEEP TO MAKE SURE THEY HAVE EVERYTHING WE'VE AGREED TO TURN OVER SAYS ADVISER BRUCE LINDSEY MAYBE AN FBI AGENT SHOULD SIT IN TEN YEARS AGO THERE'D HAVE BEEN CRIES FOR THE NATIONAL ARCHIVIST TO HANDLE SUCH SENSITIVE DOCUMENTS DIFFERENT TIMES DIFFERENT STANDARDS 9401040126 940104 BUSINESS WORLD CLINTON'S RECOVERY ADA'S REACH ANNENBERG'S GIFT BY TIM W FERGUSON AT 1994'S DAWN LET US CONSIDER THREE STORIES ONE MACROECONOMIC ONE MICROECONOMIC AND ONE SUPRAECONOMIC DEBATE OVER CREDITING BILL CLINTON FOR THE RECOVERY PROBABLY MISSES THE POLITICAL POINT IT'S A CLINTON RECOVERY NO MATTER WHAT HIS POLICIES DID TO BOOST OR THWART IT EVEN 4 GROWTH IN 1994 WOULD BE MODEST BY POSTRECESSIONARY STANDARDS BUT THE FINANCIAL FLU LINGERED SO LONG THIS TIME AND CONTRIBUTED TO SUCH PESSIMISM ABOUT DECLINE THAT ANY RELIEF IS LIKE A GIFT THIS COULD CHANGE THE POLITICAL CALCULUS SOME ASSUMED THE TAX INCREASES INSPIRED BY CLINTON & CO WOULD SINK THE ECONOMY AGAIN IF NOT IMMEDIATELY THEN SURELY WHEN PEOPLE FULLY AWOKE TO THEM THIS SPRING THAT IN TURN WOULD LEAD TO A DRAMATIC REVERSAL FOR THE DEMOCRATS IN 1994 IT'S INCREASINGLY CLEAR THE FIRST PART IS NOT GOING TO HAPPEN THE TRANSACTIONAL TEMPO IS PICKING UP IF ANYTHING AND THE TAXES TO COME ARE ON THE TOPEARNING AND MOST SOPHISTICATED PAYERS WHO'VE ALREADY BUDGETED FOR THEM THE MOST ACUTE MEASURES FOR VOTERS WILL BE EMPLOYMENT DATA THESE ARE THE NUMBERS THAT SEEMED LEAST LIKELY TO BODE WELL FOR MR CLINTON BECAUSE OF THE VERY PRODUCTIVITY PUSH LABOR SAVING THAT IS AIDING THE OVERALL ECONOMY BUT EVEN THEY ARE TRENDING POSITIVELY STRONG INCOME ADVANCES NEARLY 5 FOR 1993 SUGGEST THAT NOT ONLY ARE POSITIONS BEING ADDED BUT THE HIRING ISN'T USUALLY FOR A FRACTION OF THE PERSON'S PREVIOUS WAGE SHORTRUN POLITICS ASIDE ALL OF THIS POSES AN INTELLECTUAL CHALLENGE TO THOSE OF US WHO'VE DISPARAGED CLINTONOMICS IF THE MEDICINE IS SO BAD THEN WHY DO WE FEEL BETTER ONE ANSWER IS WE'LL NEVER KNOW WHAT MIGHT HAVE BEEN AFTER ALL WHEN GEORGE BUSH LEFT OFFICE THE ECONOMY WAS GROWING FASTER THAN IT IS NOW HOWEVER VALID THAT COMPARISON IT'S HARD TO DISPUTE THAT THE LOW INTEREST RATES OF 1993 ARE GREATLY BEHIND THE CURRENT REBOUND THAT LEADS TO ANOTHER DEBATE DID LONG RATES DROP BECAUSE OF 1 THE CLINTON DEFICIT REDUCTION 2 EXPECTATIONS MISTAKEN OF ANOTHER RECESSIONARY DIP FROM TAX INCREASES 3 BELATED CONFIDENCE IN THE FEDERAL RESERVE'S SOUNDMONEY INSTINCTS OR 4 EXTERNAL INFLUENCES ON BORROWING INCLUDING THE DOWNTURNS ABROAD THE TRUEST CASE TO BE MADE IN REGARD TO CLINTONOMICS AND THE RECOVERY IS THAT WHATEVER GOT US TO THIS POINT SOME ACTIONS ARE HURTFUL IN THE LONG RUN TAX RATES THAT ENCOURAGE SHELTERS AND DISCOURAGE PRODUCTIVE INVESTMENT WILL DIMINISH OUTPUT REGULATION SEE FOLLOWING ITEM THAT EXACTS UNDUE COST FOR SCANT BENEFIT WILL BE A DRAG AND INFLATIONARY STEPS BY COWED MONETARY AUTHORITIES WILL UNDERMINE THE WHOLE SHOW DEMOCRATS MAY BE GETTING OVER THE ECONOMIC HUMP FOR THIS ELECTION SEASON BUT 1996 COULD BE A DIFFERENT STORY FEDERAL OFFICIALS HAVE BEEN TAKING COMPLAINTS BUT NOT ACTION UNDER THE AMERICANS WITH DISABILITIES ACT ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL GROUSED RECENTLY THE EDUCATION PERIOD IS OVER AND A CRACKDOWN IS COMING HE ASSURED SOME PROBONO LAWYERS IN WASHINGTON THE NEW YEAR INDEED MAY SEE A BURST OF THIS LITIGATION THE OPENENDED ASSAULT ON US BUSINESS AND INSTITUTIONS THAT CRITICS OF THE LEGISLATION PREDICTED THE HANDICAPPED LAW IS DELIBERATELY VAGUE THUS INVITING DEFINITION BY INJUNCTION AND THAT PROCESS ACTUALLY BEGAN IN EARNEST AT THE JUSTICE DEPARTMENT JUST OVER A YEAR AGO IN THE WANING DAYS OF THE BUSH ADMINISTRATION ATTORNEYS FROM THE CIVIL RIGHTS/PUBLIC ACCESS DIVISION FILED SUIT AGAINST BECKER CPA REVIEW A COURSE OFFERED NATIONWIDE TO THOSE SEEKING CERTIFICATION AS ACCOUNTANTS ACTIVISTS FOR THE DEAF WANT TO FORCE BECKER AND PRESUMABLY OTHER INSTRUCTIONAL ENTITIES TO PROVIDE SIGNLANGUAGE INTERPRETERS ON DEMAND IN THEIR CLASSROOMS THOUGH THE PROJECTED COST IS TRIPLE OR MORE THE TUITION FOR THE OCCASIONAL STUDENT ASSISTED A WEEK BEFORE CHRISTMAS HOWEVER A US DISTRICT COURT DEALT A BLOW TO THE JUSTICE DEPARTMENT JUDGE THOMAS HOGAN ALL BUT DISMISSED THE CASE AFTER CHIDING THE GOVERNMENT'S LAWYERS FOR THE WAY IT WAS PURSUED STILL THE CASE EXEMPLIFIES THE EXPANSIVENESS OF A LAW THAT GUARANTEES FULL AND EQUAL ENJOYMENT OF PUBLIC AND COMMERCIAL SERVICES TO THOSE WHO NEED AIDS TO REALIZE THAT RIGHT IN THIS INSTANCE A JURIST SEEMS TO HAVE CONCLUDED THAT COMPROMISE IS SUFFICIENT BUT THE WORDING THAT CONGRESS AND MR BUSH ENACTED LEAVES ROOM FOR ARGUMENT THAT THE ADA IS NOT SATISFIED BY ANYTHING SHORT OF CUSTOMIZED ACCOMMODATION SUCH A BURDEN WOULD IMPOSE PROHIBITIVE COSTS WHICH IS WHY THE LAW OSTENSIBLY ALLOWS FOR HARDSHIP RELIEF ANOTHER SIGN OF JUSTICE TOUGHENING UP THE ADA EMERGED FROM A CASE THIS FALL INVOLVING SARDI'S RESTAURANT IN NEW YORK ALL IT WILL TAKE IS A RUNAWAY CIVIL RIGHTS STAFF AND AGREEABLE COURTS TO TURN GOOD INTENTIONS INTO A MONSTER LAST MAY WALTER ANNENBERG DROPPED A LINE TO MALCOLM S FORBES JR ABOUT A DIRECT HIT FORBES MAGAZINE HAD AIMED AT THE NATIONAL EDUCATION ASSOCIATION THE BIG TEACHER UNION DEAR STEVE THE FELLOW PUBLISHING BARON WROTE THERE IS NO DOUBT IN MY MIND THAT THIS IS ONE OF THE MOST WHOLESOMELY CONSTRUCTIVE EXPOSES THAT I HAVE EVER SEEN IN A PUBLICATION AND I SALUTE YOU AND YOUR ASSOCIATES FOR THIS MONUMENTAL REVELATION WHETHER MR ANNENBERG'S SUBSEQUENT GENEROSITY TOWARD THE ACADEMIC WORLD COMPORTS WITH THAT STARK SENTIMENT IS IN DOUBT SOME SCHOOL REFORMERS PARTICULARLY THOSE IN LINE TO RECEIVE A PART OF THE 500 MILLION HE OFFERED AT YEAR'S END TO TEACH THE COUNTRY'S WAYWARD YOUTH BETTER ARE DELIGHTED BUT OTHERS LAMENT THAT MUCH OF THE MONEY WILL FIND ITS WAY TO THE ADMINISTRATIVE BLOB THAT FOSTERED THE SCANDALOUS CONDITION OF MANY SCHOOLS MR ANNENBERG'S LATEST GIFT WHICH GAINED HIM A WHITE HOUSE CEREMONY AND MUCH PRAISE IS EXPECTED TO TARGET SITELEVEL INNOVATIONS AT SELECTED SCHOOLS SOME GOOD WILL COME OF THIS THE DISAPPOINTMENT IS THAT LITTLE OF THE MONEY IS LIKELY TO GO TO ESTABLISHING UNIFORM STANDARDS FOR PUPIL PERFORMANCE SO PARENTS HAVE A BASIS FOR KNOWING HOW ALL SCHOOLS ARE REALLY PERFORMING OR TO SCHOLARSHIP PROGRAMS THAT WOULD ALLOW FAMILIES TO CHOOSE FULLY AMONG COMPETING INSTITUTIONS INSTEAD THESE FUNDS ARE DESTINED FOR THE REFORM WING OF THE EDUCATION ESTABLISHMENT WHICH IF WE'RE LUCKY WILL KEEP THEM OUT OF THE HANDS OF THE URBAN SCHOOLDISTRICT ADMINISTRATIONS THE PROFESSORS WHO HAVE CONFERRED THE DEGREES ON AMERICA'S FAILED ELEMENTARY AND SECONDARY LEADERSHIP AND THE TEACHER UNIONS WHOSE INFLUENCE OVER THE WHOLE OPERATION GROWS BY THE DAY THAT'S A TALL ORDER MR ANNENBERG'S HISTORY IS ONE OF BOLD STROKES TO ASSIST PEOPLE AND CAUSES HE BELIEVES IN IT WOULD BE REGRETTABLE IF ONE OF HIS LAST AND LARGEST GIFTS BUYS ONLY TIME FOR A CRUMBLING SYSTEM 9401040125 940104 A SCOTTISH PROPHET'S REPORT CARD NO EARTHQUAKE NO CRASH NO CURE BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL WHEN WE LAST HEARD FROM SWEIN MACDONALD THE SCOTTISH SHEPHERD AND SEER HE PREDICTED A GRIM 1993 FOR THE WORLD IT WAS A GRIM YEAR INDEED FOR MR MACDONALD IN AN ARTICLE PUBLISHED IN THIS SPACE IN JANUARY 1993 THE SOOTHSAYER MADE SEVEN PREDICTIONS NOT ONE OF WHICH CAME TRUE MR MACDONALD'S FORECASTS NOTHWITHSTANDING PRESIDENT CLINTON IS STILL IN OFFICE THERE HAS BEEN NO EARTHQUAKE IN FLORIDA AND NO CURE FOR AIDS AND THE LONDON STOCK MARKET FAR FROM CRASHING AS PREDICTED SOARED 20 TO RECORD HIGHS ON TOP OF THE FAULTY PROGNOSTICATION THE WHITEBEARDED 62YEAROLD CLAIRVOYANT FROM NORTH OF INVERNESS HAS DEVELOPED AN ULCER HIS WIFE LEFT HIM AND TOOK THE CHILDREN AND MR MACDONALD WAS FINED FOR SEXUALLY ASSAULTING WOMEN WHO CAME TO HIM TO HAVE THEIR FORTUNES TOLD THE SEER DENIES THE CHARGES IT'S NOT THE KIND OF THING ONE EXPECTS OF OUR HIGHLAND PROPHETS SAYS BRIAN SWANSON REPORTER FOR THE DAILY RECORD IN GLASGOW WHICH PUBLISHES MR MACDONALD'S PREDICTIONS HIS CRYSTAL BALL HAS BECOME A BIT CLOUDY OF LATE IT WAS A RAPID RISE AND FALL FOR THE SHEPHERD WHO WON FAME FOR SUCCESSFULLY PREDICTING THE OIL SPILL OFF THE SHETLAND ISLANDS LAST JANUARY HE COULD HAVE HAD A VISION ONCE BUT WHEN YOU COME OUT WITH STUFF LIKE THAT YOU'RE DIGGING IN THE DIRT SAYS LAURENCE LYNCH A FELLOW FORTUNE TELLER WHO WORKS AT MYSTERIES A BOOKSHOP IN LONDON MR MACDONALD DENIES HE'S LOST HIS SECOND SIGHT I HAVEN'T LOST MY TOUCH NO WAY MY FRIEND JUST LOST MY TIMING HE SAYS BUT I CAN HONESTLY SAY I NEVER GOT ANYTHING COMPLETELY WRONG MANY OF THE THINGS HE FORECAST STILL WILL HAPPEN IN THE NEXT TWO YEARS HE BELIEVES HE STILL THINKS A FLORIDA EARTHQUAKE IS ON THE WAY THE STATE DID HAVE SOME FLOODS HE POINTS OUT AND HE BELIEVES A LONDON STOCKMARKET CRASH AND AN AIDS CURE ARE VERY CLOSE HE ALSO SAYS HE FORECAST THAT HE'D HAVE TROUBLE WITH THE LAW THOUGH HE COULDN'T SEE WHAT KIND IN THE MEANTIME HE'S TONED DOWN SOME OF HIS FORECASTS FOR 1994 HE THINKS THE US WILL BE CALLED INTO ANOTHER MIDDLE EAST PEACEKEEPING OPERATION AND HE FEARS FORMER PRESIDENT BUSH WILL BE HOSPITALIZED IN THE SPRING WITH SEVERE TUMMY PAINS BUT PERHAPS THE SOOTHSAYER'S MOST IMPORTANT FORECAST IS FOR HIMSELF NEXT YEAR WILL BE A LOT BETTER HE SAYS A LOT HAPPIER WITH MORE PEACE 9401040124 940104 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FRANKLIN QUEST CO AN OFFERING OF 25 MILLION COMMON SHARES VIA MERRILL LYNCH & CO AND SMITH BARNEY SHEARSON INC LAS VEGAS ENTERTAINMENT NETWORK INC AN OFFERING OF 50 MILLION OF 6 CONVERTIBLE SUBORDINATED DEBENTURES VIA RAS SECURITIES TESORO PETROLEUM CORP AN OFFERING OF 01 COMMON SHARE FOR EACH SHARE OF 216 PREFERRED STOCK THRIFTY HOLDINGS INC AN OFFERING OF UP TO 300 MILLION OF SENIOR SUBORDINATED NOTES DUE 2004 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND MERRILL LYNCH & CO 9401040123 940104 NORTHWEST AIR ANNOUNCES FARE CUTS OF UP TO 45 EAGAN MINN AP NORTHWEST AIRLINES SAID IT IS CUTTING WINTER FARES AS MUCH AS 45 THE SALE BEGINS TODAY AND TICKETS MUST BE BOUGHT BY JAN 11 THE DISCOUNTS APPLY FOR TRAVEL FROM JAN 18 THROUGH APRIL 15 IN THE 50 STATES CANADA AND MOST CARIBBEAN DESTINATIONS THE AIRLINE SAID TICKETS MUST BE BOUGHT AT LEAST 14 DAYS BEFORE TRAVEL REQUIRE A SATURDAY NIGHT STAY AND ARE NONREFUNDABLE SAMPLE SALE FARES INCLUDE ROUNDTRIP BETWEEN MINNEAPOLIS AND LOS ANGELES FOR 318 MEMPHISDETROIT FOR 202 AND LOS ANGELESNEW YORK FOR 338 NORTHWEST AIRLINES IS A UNIT OF WINGS HOLDINGS INC 9401040122 940104 GILBERT ASSOCIATES' ACQUISITION READING PA GILBERT ASSOCIATES INC SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF THE ASSETS AND BUSINESS OF INSTRUMENT ASSOCIATES INC A CLOSELY HELD COMPANY BASED IN MEMPHIS TENN TERMS OF THE TRANSACTION WHICH CLOSED DEC 30 WEREN'T DISCLOSED THE ACQUIRED COMPANY WILL BE OPERATED AS A DIVISION OF GILBERT'S GAITRONICS CORP A PRODUCER OF COMMUNICATIONS EQUIPMENT AND SYSTEMS FOR DEMANDING ENVIRONMENTS SUCH AS PETROCHEMICAL FACILITIES POWER PLANTS AND MASSTRANSIT SYSTEMS 9401040121 940104 GOODYEAR SHOWS NEW TIRE AKRON OHIO GOODYEAR TIRE & RUBBER CO UNVEILED A NEW HIGHPERFORMANCE TIRE DUBBED THE EAGLE AQUATRED THE NEW TIRE HAS A DUALAQUACHANNEL DESIGN WITH TWO DEEP CIRCUMFERENTIAL GROOVES AND A WIDE DIRECTIONAL TREAD WITH ANGLED CROSS GROOVES THAT EVACUATE WATER FOR IMPROVED WET TRACTION A COMPANY SPOKESWOMAN SAID THE STRATEGIC OBJECTIVE OF INTRODUCING THE NEW TIRE IS TO INCREASE INCREMENTALLY THE COMPANY'S ALREADY DOMINANT POSITION IN THE HIGHPERFORMANCE TIRE MARKET THE NEW TIRES WHICH WILL SELL FOR 160 TO 220 APIECE WILL ONLY BE AVAILABLE AS A REPLACEMENT AND WILL GO ON SALE IN APRIL THE TIRE WILL REPLACE AN HSPEED RATED TIRE CURRENTLY IN GOODYEAR'S LINEUP THE NEW TIRE WILL BE PRODUCED AT THE COMPANY'S UNION CITY TENN PLANT 9401040120 940104 FOREIGN EXCHANGE DOLLAR GAINS AGAINST MARK AND YEN CONTINUING A RALLY BEGUN LAST WEEK BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR KICKED OFF THE NEW YEAR WITH AN IMPRESSIVE GAIN AGAINST THE MARK ADDING TO GAINS RACKED UP LAST WEEK AS INVESTORS ANTICIPATE A STRENGTHENING US CURRENCY JAPAN'S BLEAK POLITICAL AND ECONOMIC PICTURE CONTINUED TO UNDERCUT THE YEN MEANWHILE PROMPTING TRADERS TO PUSH THAT CURRENCY LOWER ACROSS THE BOARD THE DOLLAR IN NEW YORK CLOSED AT 17435 MARKS UP FROM FRIDAY'S 17382 MARKS AND AT 11261 YEN TO THE DOLLAR UP FROM 11180 YEN AGAINST THE BRITISH CURRENCY IT CLOSED AT 1475 TO THE DOLLAR DOWN FROM A PREVIOUS 1477 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11307 YEN AND AT 17432 MARKS INVESTORS LAST WEEK BEGAN A SLOW MOVE INTO THE DOLLAR BETTING IT WILL RISE THIS YEAR AS THE US ECONOMY POWERS AHEAD OF EUROPE'S AND AS EUROPEAN INTEREST RATES FALL THE MOVE CONTINUED YESTERDAY AS INVESTORS WHO MISSED THE BEGINNINGS OF THE RALLY GOT ON BOARD ANALYSTS EXPECT THE DOLLAR TO REACH AT LEAST 18 MARKS THE TIGHTENING OF INTERESTRATE DIFFERENTIALS STRONG US ECONOMIC PERFORMANCE COMPARED TO EUROPE POLITICAL UNCERTAINTY AROUND THE GLOBE ALL THESE THINGS ARE IN PLACE FOR A HIGHER DOLLAR SAID JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK IN NEW YORK TRADERS SAID THE DOLLAR'S RALLY BEGAN IN EUROPEAN TRADING IT THEN GATHERED STEAM AS US TRADING OPENED AND AS THE MARKET RECEIVED MORE EVIDENCE OF STRENGTH IN THE US ECONOMY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS COMPOSITE INDEX ROSE TO 58 IN DECEMBER FROM NOVEMBER'S 56 A FIGURE ABOVE 50 INDICATES THAT THE MANUFACTURING ECONOMY IS GENERALLY EXPANDING THE GROUP ALSO REPORTED THAT ITS EMPLOYMENT INDEX ROSE TO 49 ITS HIGHEST LEVEL IN MORE THAN FOUR YEARS FROM NOVEMBER'S 46 ANALYSTS SAID THE RISE AUGURS WELL FOR THE US'S DECEMBER EMPLOYMENT REPORT DUE FRIDAY WHICH IS EXPECTED TO SHOW AN INCREASE OF 200000 JOBS OVER NOVEMBER'S TOTAL MEANWHILE INVESTORS WORRIED BY JAPAN'S GRAVE POLITICAL AND ECONOMIC PROBLEMS DUMPED THE YEN IN FAVOR OF THE US AUSTRALIAN AND CANADIAN DOLLARS WITH JAPAN IN DEEP RECESSION THE BANK OF JAPAN IS WIDELY EXPECTED TO MAKE FURTHER CUTS IN THE DISCOUNT RATE WHICH IS ALREADY AT AN ALLTIME LOW OF 175 BUT EVEN THAT ISN'T EXPECTED TO END THE SLUMP THE ECONOMY'S NOT SHOWING ANY SIGN OF RECOVERING AT ALL SAID ANN FINALY ASSISTANT VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN IN NEW YORK FOR SEVERAL MONTHS JAPANESE BUSINESS LEADERS AND ANALYSTS HAVE URGED THE GOVERNMENT OF PRIME MINISTER MORIHIRO HOSOKAWA TO AID THE ECONOMY BY CUTTING TAXES AND BOOSTING SPENDING SO FAR QUARRELS OVER POLITICAL REFORM HAVE DELAYED ANY MOVES THOUGH MR HOSOKAWA HAS PROMISED TO HAVE A PACKAGE TOGETHER BY THE MIDDLE OF THIS MONTH TRADERS SAID THE CANADIAN AND AUSTRALIAN DOLLARS BENEFITED FROM THE FLIGHT FROM THE YEN PUSHING BOTH CURRENCIES HIGHER AGAINST THE US DOLLAR BUT DEALERS CAUTIONED THAT THE MOVES WERE PROBABLY AMPLIFIED BY THIN TRADING CONDITIONS SINCE THE CANADIAN AND AUSTRALIAN MARKETS WERE CLOSED FOR A HOLIDAY 9401040119 940104 WHO'S NEWS SECURITIES INDUSTRY ASSOCIATION SECURITIES INDUSTRY ASSOCIATION NEW YORK STUART J KASWELL 39 YEARS OLD WILL JOIN THIS TRADE ASSOCIATION WHICH REPRESENTS SECURITIESBROKERAGE AND INVESTMENTBANKING FIRMS AS SENIOR VICE PRESIDENT AND GENERAL COUNSEL EFFECTIVE MIDJANUARY MR KASWELL AN ATTORNEY AT WINTHROP STIMSON PUTNAM & ROBERTS IN WASHINGTON SUCCEEDS WILLIAM J FITZPATRICK 66 WHO RETIRES BUT WILL CONTINUE AS A CONSULTANT TO THE ASSOCIATION 9401040118 940104 BUSINESS BRIEF GENERAL HOST TO ELIMINATE 26 STORES TAKE CHARGE TOTALING 136 MILLION STAMFORD CONN GENERAL HOST CORP SAID IT WILL CLOSE 26 OF ITS FRANK'S NURSERY AND CRAFTS STORES LEADING TO AN AFTERTAX CHARGE OF 136 MILLION FOR THE FISCAL FOURTH QUARTER ENDING JAN 30 AND A PROBABLE LOSS FOR THE FISCAL YEAR ROBERT LOVEJOY THE COMPANY'S VICE PRESIDENT AND TREASURER SAID THE TARGETED STORES JUST DIDN'T WORK OUT IN TERMS OF REVENUE AND PROFIT AFTER A FIVEYEAR BREAKIN PERIOD WE DECIDED TO BITE THE BULLET AND TAKE THE CHARGE WHICH WORKS OUT TO 68 CENTS A SHARE AND WILL LIKELY RESULT IN A LOSS FOR THE YEAR HE SAID THE COMPANY WILL DISMISS 165 FULLTIME EMPLOYEES AND 350 SEASONAL WORKERS AS IT CUTS BACK TO 266 STORES IN 16 STATES FROM 292 STORES IN 17 STATES ALL TOLD GENERAL HOST EMPLOYS 9200 PEOPLE THE TARGETED CLOSURES ARE PRIMARILY IN THE NASHVILLE TENN SOUTHERN FLORIDA AND ORLANDO MARKETS MR LOVEJOY SAID CLOSING THE STORES WILL SAVE THE COMPANY ABOUT 38 MILLION IN ANNUAL LOSSES AND HELP IT REDIRECT THE SAVINGS TOWARD REDUCING ITS 238 MILLION IN LONGTERM DEBT THE COMPANY EXPECTS FURTHER SAVINGS FROM CUTTING A PLANNED 25 MILLION IN INVENTORY HE ADDED THE CLOSINGS COME AMID WIDENING LOSSES AT THE GARDENPRODUCTS AND CRAFTS RETAILER GENERAL HOST HAS BEEN REDUCING ITS STORE NUMBERS AFTER NUMEROUS UNPROFITABLE STORE OPENINGS IN THE PAST FEW YEARS RECENTLY IT SAID IT WOULD TRY TO REMOVE 16 MILLION IN ANNUAL COSTS AND CUT ITS LONGTERM DEBT BY 50 MILLION TO SAVE ON INTEREST PAYMENTS IN A RELATED ANNOUNCEMENT GENERAL HOST SAID YESTERDAY THAT IT WILL REPLACE ITS CASH DIVIDEND IN EARLY MARCH WITH A STOCK DIVIDEND TO BE SET QUARTERLY THE CURRENT QUARTERLY DIVIDEND IS 95 CENTS THE COMPANY SAID THE STOCK DIVIDEND WILL HELP CONSERVE CASH SEPARATELY THE COMPANY SAID ITS REVENUE FOR THE FIRST EIGHT WEEKS OF THE FOURTH QUARTER WAS 143 MILLION COMPARED WITH 141 MILLION A YEAR EARLIER THE SALES INCLUDE THE CHRISTMAS SELLING SEASON 9401040117 940104 MGM NAMES GLEASON TO POST SANTA MONICA CALIF METROGOLDWYNMAYER INC SAID IT NAMED LARRY GLEASON PRESIDENT OF WORLDWIDE THEATRICAL DISTRIBUTION OF THE MOVIE STUDIO'S DISTRIBUTION UNIT MR GLEASON 55 YEARS OLD WAS PRESIDENT OF THEATRICAL EXHIBITION FOR PARAMOUNT COMMUNICATIONS INC IN CHARGE OF THE COMPANY'S 1300 MOVIE SCREENS IN 12 COUNTRIES HE SUCCEEDS ASHLEY BOONE WHO RAN MARKETING AND DISTRIBUTION AND LEFT THE COMPANY LATE LAST YEAR SEPARATELY MGM SAID IT COMPLETED A PREVIOUSLY ANNOUNCED FINANCIAL RESTRUCTURING DESIGNED TO CLEAN UP ITS BALANCE SHEET REMOVING 900 MILLION IN BANK DEBT FROM MGM'S BOOKS AND REDUCING ITS DEBTTOEQUITY RATIO TO 1TO2 FROM 15TO1WITH A VIEW TOWARD A FUTURE SALE OF THE COMPANY MGM IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA 9401040116 940104 WHO'S NEWS PROLER INTERNATIONAL CORP PROLER INTERNATIONAL CORP HOUSTON ROBERT L MUELLER PRESIDENT AND CHIEF OPERATING OFFICER OF THIS ENVIRONMENTAL SERVICES COMPANY RETIRED TO PURSUE THE DEVELOPMENT OF A CONSULTING SERVICES BUSINESS MR MUELLER 66 YEARS OLD AGREED TO CONSULT FOR THE COMPANY THIS YEAR HERMAN PROLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME MR MUELLER'S DUTIES WHILE THE COMPANY LOOKS FOR A SUCCESSOR 9401040115 940104 JOURNAL'S WORLD MARKET INDEX ADDS FOUR COUNTRIES NEW YORK THE STOCK MARKETS OF FOUR COUNTRIES WERE ADDED TO THE DOW JONES WORLD STOCK MARKET INDEX EFFECTIVE WITH THE FIRST DAY OF TRADING IN THE NEW YEAR THE ADDITION OF AUSTRIA IRELAND MEXICO AND THAILAND BRINGS TO 24 THE NUMBER OF STOCK MARKETS AROUND THE GLOBE BEING TRACKED BY THE WORLD INDEX WHICH IS PUBLISHED DAILY IN THE WALL STREET JOURNAL THERE ARE 70 THAI STOCKS 30 MEXICAN STOCKS 23 AUSTRIAN STOCKS AND 11 FROM THE IRISH MARKET THE STOCKS TEND TO BE THE LARGEST MOST ACTIVELY TRADED ISSUES IN THEIR HOME MARKETS AND THEY REPRESENT ABOUT 80 OF EACH MARKET'S TOTAL CAPITALIZATION PRICE TIMES SHARES OUTSTANDING THESE STOCKS WHICH BRING THE TOTAL IN THE WORLD INDEX TO 2593 ALSO JOIN THE 120 INDUSTRY GROUPS AND ECONOMIC SECTORS IN THE WORLD INDEX WHICH ALLOW INVESTORS TO FOLLOW STOCK PERFORMANCE BY TYPE OF BUSINESS AS WELL AS BY GEOGRAPHY THE DOW JONES WORLD STOCK MARKET INDEX WAS INTRODUCED ONE YEAR AGO WITH 12 COUNTRIES 2353 STOCKS AND A BASE DATE OF DEC 31 1991 MARKETS IN ADDITIONAL COUNTRIES WILL BE ADDED EACH QUARTER THROUGHOUT THIS YEAR 9401040114 940104 TECHNOLOGY & MEDICINE GENERAL MAGIC AND AT&T TO INTRODUCE SOFTWARE MOUNTAIN VIEW CALIF GENERAL MAGIC INC SAID IT AND ONE OF ITS BACKERS AMERICAN TELEPHONE & TELEGRAPH CO WILL ANNOUNCE THURSDAY PRODUCTS AND SERVICES THAT WILL ALLOW CONSUMERS TO USE ELECTRONIC AGENTS TO FIND AND FILTER INFORMATION ON NETWORKS GENERAL MAGIC IS A CONSORTIUM OWNED BY AT&T APPLE COMPUTER INC MOTOROLA INC AND THREE GIANT CONSUMER ELECTRONIC CONCERNS MATSUSHITA ELECTRIC INDUSTRIAL CO SONY CORP AND PHILIPS ELECTRONICS NV IT HAS BEEN WORKING FOR THREE YEARS ON TELESCRIPT A COMMUNICATIONS TECHNOLOGY THAT WILL ALLOW DEVICES SUCH AS PERSONAL DIGITAL ASSISTANTS PERSONAL COMPUTERS AND INTERACTIVE TELEVISONS TO TALK TO ONE ANOTHER IN A COMMON LANGUAGE THE SOFTWARE ALSO WILL ALLOW USERS TO SEND PREPROGRAMMED AGENTS ONTO NETWORKS TO AUTOMATICALLY PERFORM TASKS SUCH AS HANDLING MESSAGES ALERTING USERS TO INFORMATION OR SHOPPING IN A STATEMENT THE CONSORTIUM SAID IT WILL DEMONSTRATE TELESCRIPT AT THE MACWORLD EXPO IN SAN FRANCISCO THURSDAY AS WELL AS AN OPERATING SYSTEM CALLED MAGIC CAP THAT SIMPLIFIES THE USE OF INTELLIGENT AGENTS AND OTHER COMMUNICATIONS MOTOROLA SONY MATSUSHITA AND PHILIPS ARE DEVELOPING HANDHELD COMMUNICATORS THAT USE THE MAGIC CAP OPERATING SYSTEM GENERAL MAGIC SAID AT&T WILL ANNOUNCE A NETWORK SERVICE FOR CONSUMERS ON THE SAME DAY AT THE CONSUMER ELECTRONICS SHOW IN LAS VEGAS THAT WILL BE BASED ON TELESCRIPT 9401040113 940104 SPANISH UNION FACES SCANDAL OVER FINANCES AS UGT STRIKE DRAWS NEAR SOME MEMBERS WONDER WHERE THEIR MONEY IS BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID LESS THAN A MONTH BEFORE SPAIN IS EXPECTED TO BE PARALYZED BY A GENERAL STRIKE THE COUNTRY'S BIGGEST AND MOST POWERFUL UNION HAS BECOME EMBROILED IN A FINANCIAL SCANDAL THAT HAS BROUGHT INTO QUESTION THE UNION'S CREDIBILITY AND ITS ROLE IN SPANISH SOCIETY THE EMPIRE THAT THE UNION GENERAL DE TRABAJADORES BUILT UP OVER THE LAST DECADE IN AN ATTEMPT TO ESTABLISH ITS FINANCIAL INDEPENDENCE FROM THE RULING SOCIALIST PARTY IS CRUMBLING UNDER THE WEIGHT OF GROWING BANK DEBTS AND UNPAID BILLS ONLY A LASTMINUTE LOAN FROM THE STATE CREDIT INSTITUTION THE INSTITUTO DE CREDITO OFICIAL SAVED THE HOLDING COMPANY FOR UGT'S FINANCIAL INTERESTS FROM BANKRUPTCY LAST MONTH THE MOVE ELICITED PROTEST FROM PRIVATE BUSINESS PEOPLE WHO ALSO HAVE BEEN HIT HARD BY SPAIN'S RECESSION BUT HAVE NO RECOURSE TO GOVERNMENT AID THE GOVERNMENT DECISION TO BAIL OUT UGT ALSO RAISED SPECULATION THAT THE UNION WOULD BE HARD PRESSED TO CONTINUE PLANS FOR A GENERAL STRIKE ON JAN 27 WHICH WAS CALLED TO PROTEST A GOVERNMENT PROGRAM TO REFORM THE COUNTRY'S LABOR MARKET AT THE CENTER OF THE SCANDAL IS A COOPERATIVE KNOWN AS PLAN SOCIAL DE VIVIENDAS OR THE PSV FOUNDED BY UGT AT THE HEIGHT OF SPAIN'S ECONOMIC BOOM IN 1988 TO HELP PROVIDE LOWCOST HOUSING FOR MEMBERS AFTER PAYING BILLIONS OF PESETAS SOME 20000 PSV MEMBERS FIND THEMSELVES WITHOUT EITHER THEIR HOMES OR THEIR MONEY INSTEAD THE COOPERATIVE SUSPENDED PAYMENTS TO SUPPLIERS AND ANNOUNCED IT MAY NEED SOME 100 BILLION PESETAS 700 MILLION TO MEET ITS FINANCING REQUIREMENTS ALTHOUGH THE GOVERNMENT EXTENDED EMERGENCY LOANS TO THE PSV AND INICIATIVAS Y GESTION DE SERVICIOS URBANOS OR IGS THE HOLDING COMPANY THAT MANAGES THE COOPERATIVE NO ONE APPEARS TO KNOW WHAT HAPPENED TO THE 30 BILLION PESETAS PSV REPORTEDLY RECEIVED FROM ITS MEMBERS OR WHAT COURSE OF ACTION THE UNION SHOULD TAKE UNION OFFICIALS ONLY HAVE SAID THEY WILL DO EVERYTHING POSSIBLE TO ENSURE THAT MEMBERS ARE GIVEN REFUNDS OR PROVIDED WITH HOUSING AND HAVE OFFERED UGT'S ASSETS AS COLLATERAL FOR NEW LOANS NO EXPLANATION OF THE SITUATION HAS BEEN PROVIDED THE SCANDAL COMES AT A DIFFICULT TIME FOR UGT DWINDLING MEMBERSHIP AND A RAPIDLY CHANGING ECONOMIC ENVIRONMENT HAVE LEFT THE UNION FLOUNDERING WITH NO CLEAR SENSE OF DIRECTION THE DECISION OF 66YEAROLD NICOLAS REDONDO TO STEP DOWN THIS YEAR AS SECRETARY GENERAL OF UGT HAS GIVEN WAY TO A POWER STRUGGLE AMONG FACTIONS WITHIN THE UNION PARTICULARLY BETWEEN THOSE WHO ADVOCATE CONTINUING WITH THE UNION'S CURRENT COMBATIVE STANCE AGAINST THE GOVERNMENT AND ITS ECONOMIC POLICY AND REFORMERS WHO SEEK A NEW STRATEGY ONCE CLOSELY LINKED TO THE SOCIALIST PARTY UGT BROKE RANKS AFTER THE SOCIALISTS CAME TO POWER IN 1982 AND BEGAN TO LIBERALIZE SPAIN'S HIGHLY PROTECTED ECONOMY EVER SINCE MR REDONDO GAVE UP HIS SEAT IN PARLIAMENT IN 1987 TO PROTEST A GOVERNMENT CUT IN RETIREMENT PENSIONS UGT AND THE SOCIALIST PARTY HAVE BEEN AT LOGGERHEADS THE RELATIONSHIP REACHED A NEW LOW AFTER UNIONS PARALYZED THE COUNTRY WITH A GENERAL STRIKE IN DECEMBER 1988 TO PROTEST A GOVERNMENTSPONSORED YOUTHEMPLOYMENT PLAN IN FACT MR REDONDO'S DESIRE TO WEAN UGT FROM ITS DEPENDENCE ON THE GOVERNMENT LED TO THE UNION'S DECISION TO BUILD UP ITS OWN CORPORATE EMPIRE FOR INCOME NOW THE IGS COMPRISES MORE THAN 20 COMPANIES IN AREAS FROM TRAVEL TO INSURANCE BUT MISMANAGEMENT AND OVERSPENDING DROVE MANY COMPANIES MOST NOTABLY AN INSURANCE COMPANY A MORTGAGE UNIT AND THE COOPERATIVE INTO THE GROUND EXPENSIVE ADVERTISING CAMPAIGNS AND EXTRAVAGANT PROJECTS DROVE UP IGS'S COSTS EVEN THOUGH MUCH OF THE LAND FOR THE HOUSING PROJECTS WAS SOLD TO THE PSV BY LOCAL GOVERNMENTS BELOW MARKET PRICES WHEN THE RECESSION HIT ANALYSTS SAY THE IGS MAY HAVE BEEN FORCED TO COVER FINANCIAL SHORTFALLS AT SOME OF ITS COMPANIES WITH FUNDS COLLECTED FROM THE COOPERATIVE'S MEMBERS CARLOS SOTOS THE FORMER CHAIRMAN OF IGS WHO WAS REMOVED FROM HIS POST IN OCTOBER AS A CONDITION FOR AN EIGHT BILLION PESETA GOVERNMENT LOAN PUBLICLY BLAMED SPAIN'S PRIVATE CONTRACTORS AND COMMERCIAL BANKS FOR THE FIASCO PARTICULARLY THE STATECONTROLLED BANK ARGENTARIA CORP BANCARIA DE ESPANA SINCE ARGENTARIA IS CONTROLLED BY THE GOVERNMENT THE UNION FEELS THE BANK SHOULD HELP FINANCE LOWCOST HOUSING MR SOTOS SAID CONTRACTORS AND REALESTATE COMPANIES AFRAID OF THE COMPETITION CAMPAIGNED AGAINST THE PSV WHILE BANKS CUT OFF FINANCING BECAUSE THE HOUSING PROJECT WASN'T A BIG MONEY SPINNER BUT A SPOKESMAN FOR ARGENTARIA SAID PSV FAILED TO PRESENT CLEAR ACCOUNTS AND DIDN'T MEET REQUIREMENTS FOR FRESH FINANCING RATHER THAN REQUEST LOANS OR MORTGAGES FOR SPECIFIC PROJECTS THE IGS ASKED FOR A GLOBAL LOAN FOR ALL OF ITS ACTIVITIES WHICH THE BANK SAYS DOESN'T FIT ITS POLICY AS A POSSIBLE SOLUTION ECONOMY MINISTER PEDRO SOLBES SAID THE GOVERNMENT WOULD SEEK TO DIVIDE THE PSV'S HOUSING PROJECTS INTO INDEPENDENT UNITS TO FACILITATE FINANCING FROM BANKS HE ALSO SAID THE GOVERNMENT HAD NO INTENTION OF INTERVENING IN THE MANAGEMENT OF EITHER THE IGS OR THE PSV 9401040112 940104 INTERNATIONAL QUESTIONS ARISE ABOUT ACCOUNTABILITY OF HONG KONG'S ANTICORRUPTION AGENCY BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ALEX TSUI WAS A COP ON THE FAST TRACK AT THE AGE OF 46 HE WAS A TOP OFFICER IN THIS BUSINESS CAPITAL'S POWERFUL ANTICORRUPTION POLICE FORCE MANY SAID HE WOULD BE ITS FIRST CHINESE CHIEF THEN MR TSUI'S CAREER DERAILED ONE DAY IN EARLY NOVEMBER HE WAS RECALLED ABRUPTLY FROM A FOREIGN TRIP AND ORDERED TO EMPTY HIS DESK NOBODY IN GOVERNMENT WOULD SAY WHY MR TSUI WAS FIRED EVEN HONG KONG'S DEMOCRACYMINDED GOVERNOR CHRIS PATTEN WAS SILENT RUMORS OF RACISM WERE MET WITH WHISPERS OF SEXUAL HARASSMENT AND CRIMINAL TIES BUT NOTHING IN THE COLONY'S LAW REQUIRED AN EXPLANATION THE RESULTING FUROR HAS RAISED QUESTIONS ABOUT THE ACCOUNTABILITY OF GOVERNMENT AGENCIES IN PARTICULAR THE VAUNTED INDEPENDENT COMMISSION AGAINST CORRUPTION AT A TIME OF RISING JITTERS AND A WORRISOME INCREASE IN CORRUPTION REPORTS BERTRAND DE SPEVILLE A POLITE ENGLISH LAWYER WHO IS THE ICAC'S COMMISSIONER SAYS HE THINKS THE NEED FOR GREATER OPENNESS IS A VALID POINT MAKING HIS FORCE MORE ACCOUNTABLE HE ADDS IS A PROCESS I'M MORE THAN HAPPY TO CONTINUE BUT AS ALWAYS IN HONG KONG THE QUESTION IS HOW FAST WITH ONLY THREE AND A HALF YEARS REMAINING BEFORE BRITAIN RETURNS HONG KONG TO CHINESE CONTROL SOME LOCAL POLITICIANS URGENTLY ARE SEEKING A GREATER ROLE IN CONTROLLING INSTITUTIONS THAT THEY FEAR COULD BECOME INSTRUMENTS OF OPPRESSION OR COMMERCIAL ADVANTAGE IF MISUSED THE MAIN WORRY IS THE ICAC ALTHOUGH SOME OF ITS STRONGARM POWERS INCLUDING THE RIGHT TO DETAIN AND COMPEL PEOPLE TO DISCLOSE INFORMATION WERE REPEALED TWO YEARS AGO THE AGENCY RETAINS BROAD INVESTIGATORY POWERS REPORTING ONLY TO THE TERRITORY'S APPOINTED GOVERNOR THE COMMISSIONER CAN TAP TELEPHONES SEARCH PREMISES AND GAIN ACCESS TO FINANCIAL RECORDS AND AS MR TSUI'S FIRING SHOWS THE COMMISSIONER CAN DISMISS STAFF WITHOUT EXPLANATION WE MUST HAVE SUPERVISION OVER THIS CREATURE ARGUES JAMES TO A COUNCIL MEMBER WHO BELONGS TO THE UNITED DEMOCRATS OF HONG KONG PARTY AND IS OPENLY SUSPICIOUS ABOUT A POST1997 GOVERNMENT'S ABILITY TO CONTROL THE ICAC EVEN ONE OF THE ICAC'S EXISTING OVERSIGHT PANELS THE GOVERMENTAPPOINTED ADVISORY COMMITTEE ON CORRUPTION HAS CALLED FOR THE CREATION OF MORE CHECKS AND BALANCES AWKWARD TIMING FOR THE ICAC THE TIMING IS AWKWARD THE NUMBER OF CORRUPTION COMPLAINTS WAS UP 47 IN THE FIRST NINE MONTHS OF THIS YEAR AND THE NUMBER OF CASES THE AGENCY WAS INVESTIGATING AT THE END OF SEPTEMBER WAS A NEARRECORD 1359 UP 45 FROM A YEAR EARLIER MOST OF TODAY'S CASES ARE COMMERCIAL BUSINESSES PAYING BRIBES TO WIN CONTRACTS OR GAIN OTHER FINANCIAL ADVANTAGES THOUGH THERE HAVE BEEN CASES OF OFFICIAL CORRUPTION INCLUDING CUSTOMS OFFICERS AIDING SMUGGLERS MR DE SPEVILLE ASCRIBES THE SURGE TO WHAT HE CALLS A FASTBUCK SYNDROME AND THE CHINA FACTOR IN THE FIRST PEOPLE ARE ANXIOUS TO MAKE AS MUCH MONEY AS POSSIBLE ANY WAY THEY CAN BEFORE THE CHINESE TAKE OVER IN 1997 MOREOVER THE GROWING TIES BETWEEN HONG KONG AND CHINA MORE THAN 100 BILLION A YEAR IN GOODS ARE SHIPPED TO OR FROM CHINA THROUGH HONG KONG HAVE CREATED VAST OPPORTUNITIES FOR BRIBERY WHICH IS COMMON THOUGH ILLEGAL IN CHINA THE SURGE IN CORRUPTION WORRIES OFFICIALS WHO REMEMBER THE ALMOSTROUTINE NATURE OF CORRUPTION IN HONG KONG BEFORE THE ICAC WAS SET UP IN 1974 PAYOFFS ENABLED CONTRACTORS TO CONSTRUCT BUILDINGS WITH SUBSTANDARD MATERIALS TRADERS TO SMUGGLE EMBARGOED GOODS INTO CHINA AND POLICEMEN TO OVERLOOK VICE WHEN WE FINALLY TACKLED CORRUPTION WE WERE LOOKING AT IT AS A WHOLE AS A SOCIAL PROBLEM AND NOT JUST A FEW CROOKED GUYS SAYS SIR JACK CATER THE ICAC'S FIRST COMMISSIONER BY GRANTING THE ICAC DRACONIAN POWERS AND SHROUDING IT IN SECRECY THE COLONIAL ADMINISTRATION WAS ABLE TO ATTACK CORRUPTION BOTH IN THE PRIVATE SECTOR AND THROUGHOUT THE GOVERNMENT THE ICAC NOT ONLY PROSECUTED CORRUPTION BUT RAN EDUCATIONAL SEMINARS ON WHAT THE COLONY'S LAW DESCRIBES AS THE EVILS OF CORRUPTION AND REWROTE REGULATIONS THAT LENT TO CORRUPTION SO SUCCESSFUL WAS THE ICAC THAT IT BECAME A CASE STUDY AT HARVARD UNIVERSITY'S KENNEDY SCHOOL OF GOVERNMENT STILL THOUGH THE ICAC HAS ENJOYED A REPUTATION FOR HONESTY UNDER HONG KONG'S BRITISH GOVERNMENT FEARS THAT HONG KONG'S FUTURE CHINESE RULERS WON'T PROTECT ITS INDEPENDENCE RESPECT ITS ROLE OR PERMIT THE ICAC TO CHASE CORRUPTION IN CHINESE CIRCLES ARE PLAINLY EVIDENT YOU CANNOT INVESTIGATE CORRUPTION UNLESS YOU HAVE THE POWERS WE HAVE REPLIES JIM BUCKLE THE ICAC'S DIRECTOR OF OPERATIONS INCREASING POLITICAL MONITORING OF THE ICAC WILL SLOW IT DOWN HE ADDS A BETTER APPROACH HE AND OTHERS SUGGEST IS TO PERSUADE CHINA TO FIGHT CORRUPTION THE WAY THE ICAC DOES AT THE MOMENT THE ICAC AND CHINESE AUTHORITIES PERMIT EACH OTHER TO CONDUCT INTERVIEWS IN THE OTHER'S TERRITORY BUT THERE ARE FEW JOINT INVESTIGATIONS A BIG PROBLEM FOR HONG KONG AUTHORITIES IS CHINA'S WAY OF DEALING WITH PEOPLE FOUND GUILTY OF CORRUPTION EXECUTION THIS QUESTION OF SHOOTING PEOPLE IS TERRIBLY DIFFICULT TO DEAL WITH MR BUCKLE SAYS WHILE THE ICAC GRAPPLES WITH CROSSBORDER CORRUPTION MR TSUI THE OFFICIAL WHO WAS DISMISSED IS CONSIDERING LEGAL ACTIONS AGAINST THE HONG KONG GOVERNMENT EVEN THOUGH HE CAN'T SAY WHY HE WAS FIRED WITHOUT VIOLATING BRITAIN'S OFFICIAL SECRETS ACT SINCE LEAVING THE ICAC HE HAS BECOME A CONVERT TO THE ARGUMENT THAT HIS FORMER EMPLOYER SHOULD BE MORE OPEN WHATEVER SYSTEM YOU HAVE IS PRONE TO ABUSE IF THERE'S NO EXTERNAL MONITORING HE SAYS 9401040111 940104 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ISRAEL MAY QUADRUPLE ITS MAIN AIRPORT'S CAPACITY IN PREPARATION FOR AN EXPECTED PEACETIME TOURISM BOOM AND A NEW ROLE AS A HUB LINKING THE WEST AND THE FAR EAST THE 850 MILLION PROJECT TO BE SUBMITTED NEXT WEEK FOR GOVERNMENT APPROVAL WOULD ENABLE BEN GURION INTERNATIONAL AIRPORT OUTSIDE TEL AVIV TO HANDLE 16 MILLION PASSENGERS A YEAR CONSTRUCTION OF A TERMINAL IN THE SHAPE OF THE SIXPOINTED STAR OF DAVID WOULD BEGIN WITHIN A YEAR THE EXPANSION IS TO BE COMPLETED BY 1998 THE PLAN REFLECTS ISRAEL'S EXPECTATIONS OF A BOOM IN AN ALREADY STRONG ECONOMY FROM MOVES TOWARD PEACE WITH PALESTINIANS AND NEIGHBORING ARAB COUNTRIES ISRAEL'S DEVELOPMENT AS AN EASTWEST TRANSIT HUB MAY BE HELPED BY THE GOVERNMENT'S ESTABLISHMENT OF TIES WITH CHINA INDIA AND FAR EAST COUNTRIES THAT SHUNNED ISRAEL FOR DECADES DURING THE COLD WAR AND THE ARABISRAELI CONFLICT INTERNATIONAL TOURISM LAST YEAR INCREASED 38 FROM A YEAR EARLIER THE WORLD TOURISM ORGANIZATION IN MADRID SAID GLOBAL TOURIST ARRIVALS WERE ESTIMATED AT 500 MILLION AND TOURISM RECEIPTS INCREASED 9 TO ABOUT 324 MILLION EUROPE LED BY FRANCE SPAIN AND ITALY CONTINUED TO BE THE TOP DESTINATION WITH 300 MILLION ARRIVALS AND RECEIPTS OF 1625 BILLION THE EAST ASIANPACIFIC REGION LOGGED THE FASTEST GROWTH WITH ARRIVALS JUMPING 12 TO 685 MILLION AND REVENUE SOARING 15 TO 525 BILLION THE TOURISM GROUP FORECAST 32 ANNUAL TOURISM GROWTH IN THE 1990S TO 661 MILLION ARRIVALS IN THE YEAR 2000 THOUGH THE NUMBER OF DUTCH WOMEN WITH PAID JOBS HAS INCREASED SHARPLY THOSE PURSUING CAREERS ARE RELATIVELY FEW IN 1975 31 OF WOMEN AGED 15 TO 64 WORKED AND IN 1990 THOUGH WOMEN ACCOUNTED FOR 53 OF THE NETHERLANDS' LABOR FORCE ALMOST TWOTHIRDS OF THOSE WORKED ONLY PARTTIME THIS RESULTED PARTLY FROM THE GOVERNMENT SYSTEM THAT GIVES HUSBANDS TAX BENEFITS IF THEIR WIVES STAY AT HOME AND OFFERS OTHER INCENTIVES FOR WOMEN REMAINING OUT OF THE LABOR MARKET PRICES OF CIGARETTES AND TOBACCO PRODUCTS IN FRANCE WILL INCREASE AN AVERAGE OF 13 NEXT MONDAY THE STATEOWNED TOBACCO COMPANY SEITA SAID THE GOVERNMENT LAST YEAR BOOSTED THE TOBACCO TAX TWICE 15 EACH TIME BUT PRODUCERS ABSORBED SOME OF THE INCREASES TO MAINTAIN MARKET SHARE AND PRICES OVERALL CLIMBED 19 FROM 1992 LEVELS FRANCE'S 1994 BUDGET ASSUMES TAX REVENUE FROM TOBACCO OF 652 BILLION UP 10 FROM 592 BILLION LAST YEAR MOST JAPANESE EXECUTIVES EXPECT ANY RECOVERY FOR THEIR MORIBUND ECONOMY TO BE SLOW AND WEAK MORE THAN 80 OF 100 COMPANIES' TOP OFFICIALS SURVEYED BY THE KYODO NEWS SERVICE PREDICTED THE JAPANESE ECONOMY WILL GROW LESS THAN 1 IN CALENDAR 1994 A RECOVERY WAS PREDICTED BY 61 OF THE RESPONDENTS FOR THE SECOND HALF AND BY 22 FOR THE 1995 FIRST HALF ALMOST HALF SAID SPRING PAY INCREASES WOULD AVERAGE BETWEEN 2 AND 35 THOUGH VENEZUELAN BANKING WAS REVAMPED AND THE STOCKMARKET SECTOR OPENED FOR THE FIRST TIME TO FOREIGN INVESTORS WITH THE NEW YEAR ANALYSTS DON'T ANTICIPATE A FLOOD OF MONEY FROM ABROAD MORE SIGNIFICANTLY THE NEW LAWS TIGHTEN LENDING RULES AND REGULATION VENEZUELAN BANKS HAVE LENT HEAVILY IN RECENT YEARS AND MANY HAVE HAD STOCKMARKET LOSSES MANY HAVE DANGEROUSLY LOW CAPITALIZATION LEVELS BY INTERNATIONAL STANDARDS AND SOME COULD FAIL REGULATORS NOW MAY FORCE WRITEDOWNS AND CURB LENDING PROMPTING SPECULATION ABOUT A POTENTIAL FINANCIAL CRISIS FROM A DOMINO EFFECT OF ANY FAILURES THE PHILIPPINES ANNOUNCED PRIORITIES FOR PUBLIC WORKS THIS YEAR FAVORING THOSE THAT PROMISE TO BOOST THE ECONOMY REDUCE POVERTY OR IMPROVE SERVICES DEVELOPMENT AREAS TO GET FUNDING FOR QUICK COMPLETION INCLUDE TOLL ROADS IN MANILA CONVERSION PROJECTS AT FORMER US MILITARY BASES AT CLARK FIELD AND SUBIC BAY SEAPORTS AND AIRPORTS AND TOURISM PROJECTS ON THE NORTHERN ISLAND OF LUZON RURAL AIR SERVICES AND AN INTERISLAND GEOTHERMAL POWER LINK ROADS AND A STEEL MILL ON THE SOUTHERN ISLAND OF MINDANAO AND EXPRESSWAYS AND RAILROADS LAST YEAR THE GOVERNMENT PLEDGED TO SPUR THE ECONOMY BY FINANCING INFRASTRUCTURE PROJECTS BUT IT HAD TO SLASH SPENDING BECAUSE OF A REVENUE SHORTFALL THAT OCCURRED WHEN THE ECONOMY GREW JUST 25 RATHER THAN THE EXPECTED 45 HOPES FOR A 45 GROWTH RATE IN 1994 ARE CONSIDERED REALISTIC THE GOVERNMENT ALSO PROMISED TO PURSUE REFORMS TO OPEN THE ECONOMY INCLUDING BANKING TO FREER COMPETITION AND FOREIGN INVESTMENT AND CUT RED TAPE THE PHILIPPINE GOVERNMENT FIRED 621 POLICE OFFICERS LAST YEAR CITING INVOLVEMENT IN KIDNAPPINGS ROBBERIES MURDERS EXTORTION AND OTHER OFFENSES AS WELL AS ABSENTEEISM MORE THAN 5000 OTHERS ARE UNDER INVESTIGATION IN A CAMPAIGN TO CLEAN UP THE 100000MEMBER FORCE REPUTED TO BE ONE OF THE MOST CORRUPT IN ASIA SOUTH KOREAN AUTO MAKERS LAST YEAR SOLD A RECORD 21 MILLION VEHICLES UP 21 FROM A YEAR EARLIER DOMESTIC SALES INCREASED 13 TO 143 MILLION UNITS AND FOREIGN SALES JUMPED 40 TO 636400 THE KOREAN AUTOMOBILE INDUSTRY ASSOCIATION SAID 9401040110 940104 SOROS TAKES MINORITY STAKE IN SONNENBLICKGOLDMAN NEW YORK IN A MOVE TO EXPAND HIS REALESTATE INVESTMENT CAPABILITY FINANCIER GEORGE SOROS HAS PURCHASED A 33 STAKE IN A LEADING NEW YORKBASED REALESTATE INVESTMENT BANK AND BROKERAGE FIRM MR SOROS WHO OVER THE PAST YEAR HAS BECOME A LEADING INVESTOR IN DISTRESSED COMMERCIAL REAL ESTATE PAID AN UNDISCLOSED SUM FOR THE MINORITY INTEREST IN SONNENBLICKGOLDMAN CO WHICH ACTS AS A FINANCIAL INTERMEDIARY IN COMMERCIAL REALESTATE TRANSACTIONS HE WANTS TO BE THE HEAVIEST HITTER IN THE WORLD IN REAL ESTATE SAID JACK SHAFFER A PRINCIPAL IN SONNENBLICKGOLDMAN THAT'S WHY HE DID IT SINCE EARLY LAST YEAR MR SOROS HAS MADE A NUMBER OF LARGE REALESTATE INVESTMENTS ON BEHALF OF INVESTORS IN HIS QUANTUM REALTY FUND AS WELL AS ON HIS OWN ACCOUNT THROUGH G SOROS REALTY INC THE SONNENBLICKGOLDMAN DEAL WAS MADE BY SOROS REALTY THIS NEW RELATIONSHIP BROADENS OUR RANGE OF CONTACTS AND INCREASES OUR PRESENCE AS A MAJOR PARTICIPANT IN THE NORTH AMERICAN REALESTATE MARKETPLACE SAID EVAN MARKS SOROS REALTY'S PRESIDENT AND CHIEF EXECUTIVE 9401040109 940104 WORLD MARKETS SEVERAL BOURSES IN EUROPE AND ASIA INCLUDING PARIS AND HONG KONG BEGIN 1994 AT NEW HIGHS A WALL STREET JOURNAL NEWS ROUNDUP FRANKFURT SHARE PRICES FINISHED MIXED IN QUIET POSTHOLIDAY TRADING BUT PARIS STOCKS SET A NEW HIGH ON ENTHUSIASM ABOUT RATE CUTS IN FRANCE AND BRUSSELS STOCKS ENTERED RECORD TERRITORY AGAIN HONG KONG STOCKS RALLIED 17 TO A NEW HIGH LED BY PROPERTY ISSUES THE SINGAPORE AND MANILA MARKETS ALSO BEGAN THE YEAR BY POSTING RECORDS SEVERAL MARKETS WERE CLOSED FOR HOLIDAYS INCLUDING TOKYO LONDON SYDNEY TAIPEI AND WELLINGTON IN TOKYO ON TUESDAY FOLLOWING THE HOLIDAY THAT CLOSED THE MARKET AFTER LAST THURSDAY'S SESSION WHEN THE BENCHMARK NIKKEI AVERAGE FINISHED AT 1741724 STOCKS EASED 4750 POINTS TO CLOSE AT 1736974 VOLUME FOR THE HALFDAYONLY SESSION WAS ESTIMATED AT A LIGHT 110 MILLION SHARES RETREATING ISSUES OUTNUMBERED GAINERS 529 TO 357 WORLDWIDE STOCK PRICES FELL MONDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11090 DOWN 017 REFLECTING LOWER ASIA/PACIFIC AND AMERICAN MARKETS AND HIGHER EUROPEAN MARKETS PLANTATIONS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 30122 UP 2093 OR 75 WITH UNITED PLANTATIONS OF MALAYSIA POSTING A 16 GAIN IN ITS LOCAL CURRENCY AIR FREIGHT STOCKS TRAILED AT 14601 DOWN 236 OR 16 WITH PITTSTON SERVICES OF THE US SLIDING 56 IN LOCAL CURRENCY IN FRANKFURT THE DAX 30STOCK INDEX GAINED 130 POINTS TO 226798 TAKING A BREATHER AFTER SURGING 23 IN 1993'S FINAL TRADING SESSION MANY GERMAN INVESTORS WERE STILL ON VACATION TURNOVER ALSO WAS THINNED BECAUSE OF THE LONDON MARKET HOLIDAY EARLY FRANKFURT ACTIVITY WAS AFFECTED BY NEWS FROM RUSSIA WHERE THE ULTRANATIONALIST POLITICIAN VLADIMIR ZHIRINOVSKY IS REPORTED TO HAVE THREATENED GERMANY WITH DESTRUCTION WHEN BONN GOVERNMENT OFFICIALS REFUSED TO ISSUE HIM A VISA LAST WEEK AND RUSSIAN PRESIDENT BORIS YELTSIN WAS EXPECTED TO TAKE A TOUGHER STAND ON THE POSITION OF ETHNIC RUSSIANS IN FORMER SOVIET STATES THOSE FACTORS WERE OFFSET BY A HIGHER US DOLLAR IN FOREIGNEXCHANGE DEALINGS AND BY HOPES FOR A REDUCTION IN GERMAN INTEREST RATES WHEN THE CENTRAL BANK'S MONETARY POLICYSETTING PANEL MEETS THURSDAY SHARES OF CONSTRUCTION COMPANIES PERFORMED WELL YESTERDAY AFTER LAGGING DURING MOST OF 1993 IN PARIS A CUT IN BASE LENDING RATES BY FRENCH BANKS HELPED SUSTAIN THE MARKET'S RALLY TAKING THE BENCHMARKET INDEX UP ALMOST 1 TO A RECORD EVEN THOUGH BUYING SLOWED AT HIGHER LEVELS IN RESPONSE TO COMPLAINTS BY FRENCH OFFICIALS THAT BENEFITS OF LOWER INTEREST RATES HAVEN'T BEEN PASSED ON TO BORROWERS MAJOR FRENCH LENDERS LOWERED BASED LENDING RATES TO 795 FROM 815 EFFECTIVE TOMORROW THE BASE RATE IS CHARGED TO BANKS' MOST CREDITWORTHY CUSTOMERS THE FRENCH GOVERNMENT HAD URGED EASING THE COST OF CREDIT TO HELP SPARK ECONOMIC RECOVERY IN AMSTERDAM STOCKS GAINED IN MODERATE VOLUME WITH FINANCIAL ISSUES MOST IN DEMAND BECAUSE OF HOPES THAT SIGNS OF STABLE LOWER GERMAN INFLATION WILL LEAD TO FURTHER INTERESTRATE CUTS IN GERMANY AND THE NETHERLANDS IN MILAN SHARES ROSE PACED BY INDUSTRIAL STOCKS BUT FINISHED OFF AT HIGHER LEVELS AFTER PRICES AND TURNOVER DWINDLED LATE IN THE SESSION AS CONCERNS ABOUT ITALIAN POLITICS INTRUDED ONCE AGAIN STARTING TODAY PRIME MINISTER CARLO AZEGLIO CIAMPI IS TO BEGIN DISCUSSIONS WITH VARIOUS POLITICAL GROUPS IN PARLIAMENT IN THE RUNUP TO A DEBATE ON A NOCONFIDENCE MOTION SCHEDULED FOR JAN 12 A SCENARIO THAT MADE SOME FOREIGN INVESTORS CAUTIOUS IN MADRID EQUITIES ROSE SHARPLY SPARKED BY HOPES OF LENDINGRATE CUTS IN GERMANY ON THURSDAY AND EXPECTATIONS THAT THE SPANISH STOCK MARKET WILL PERFORM WELL IN THE FIRST QUARTER IN STOCKHOLM PRICES CLOSED BROADLY HIGHER ON A FAVORABLE 1994 OUTLOOK FOR THE BOURSE WITH MOST SECTORS POSTING BIG GAINS THE MARKET RECOVERED FROM AN EARLY SLUMP CAUSED BY DOMESTIC SELLING PRESSURE FOLLOWING A HALVING OF CAPITALGAINS TAXES AT THE NEW YEAR WHICH HAD PROMPTED MANY PRIVATE INVESTORS TO DELAY SELLING STOCKS LAST YEAR AND IN ZURICH STOCKS ADVANCED 13 REGISTERING BROADBASED GAINS FROM CONTINUED HIGH LIQUIDITY LOW SWISS INFLATION AND INTEREST RATES ALL OF WHICH ATTRACTED DOMESTIC AND FOREIGN BUYING IN BRUSSELS SHARES CLIMBED TO A NEW HIGH TAKING DIRECTION FROM OTHER EUROPEAN BOURSES' GAINS AND A POSITIVE START ON WALL STREET THOUGH VOLUME WAS LOWER THAN USUAL BECAUSE OF LONDON'S HOLIDAY CLOSURE IN HONG KONG SHARES FINISHED THIS YEAR'S FIRST TRADING DAY AT NEW HIGHS WITH THE HANG SENG INDEX JUMPING 19810 POINTS TO 1208649 ALSO CRACKING A PERCEIVED BARRIER OF 12000 AFTER BEING TUGGED BACK AND FORTH DURING MORNING DEALINGS SHARES STAGED A STRONG RISE ON THE STRENGTH IN PROPERTY STOCKS ESPECIALLY THOSE VIEWED AS UNDERVALUED FAVORED PARTLY BECAUSE OF SPECULATION ABOUT ASSET REVALUATIONS BY PROPERTY COMPANIES AND A RECORD LAND SALE LAST MONTH THAT SECTOR SOARED 26 WHILE UTILITIES VAULTED UP 21 AND COMMERCIAL AND INDUSTRIAL ISSUES WERE AHEAD 13 IN SINGAPORE STOCKS CLOSED AT NEW HIGHS EVEN AFTER TUMBLING FROM THE DAY'S PEAKS ON PROFITTAKING SHARES OPENED SHARPLY HIGHER RESUMING 1993'S BULL TREND AS MOSTLY INDIVIDUAL INVESTORS CONTINUED BUYING ON A BROAD FRONT SOME BROKERAGE HOUSES WITH LARGE RETAIL BUSINESSES IMPOSED FRESH CURBS ON TRADING BUT TRADERS BYPASSED THAT HURDLE BY DEALING THROUGH MALAYSIAN OUTLETS STOCKS ALSO GOT A BOOST FROM ECONOMIC FUNDAMENTALS THAT CONTINUED TO FUEL BUOYANT SENTIMENT THE GOVERNMENT SAID LAST FRIDAY THAT 1993 GROSS DOMESTIC PRODUCT SURGED 98 WELL ABOVE MARKET EXPECTATIONS OF ABOUT 9 MOST SECURITIES HOUSES ARE FORECASTING A 15 GAIN FOR THE STOCK MARKET THIS YEAR IN MANILA SHARE PRICES CLIMBED 24 TO A RECORD BUOYED BY BUYING OF CERTAIN BLUECHIP ISSUES THE COMPOSITE INDEX ROCKETED UP 7543 POINTS TO 327151 IN SEOUL STOCKS GAINED SHARPLY LED BY STRENGTH IN LARGECAPITALIZATION ISSUES AND THE MAIN INDEX CHALKED UP A 15 INCREASE THE FINANCIAL SECTOR WAS STRONG WITH ACTIVE BUYING OF BANKS MOST OF WHICH ARE EXPECTED TO POST STELLAR EARNINGS INCREASES 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 9401040108 940104 WHO'S NEWS MAXIS MAXIS ORINDA CALIF SAM POOLE 47 YEARS OLD WAS NAMED PRESIDENT OF THIS CLOSELY HELD SOFTWARE COMPANY HE SUCCEEDS JEFF BRAUN 38 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR POOLE FORMER VICE PRESIDENT OF SALES JOINED THE COMPANY IN AUGUST 1992 FROM WALT DISNEY CO'S DISNEY SOFTWARE 9401040107 940104 ABREAST OF THE MARKET DOW GAINS 251 BUT MOST INDEXES FOLLOW THE BOND MARKET LOWER BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK STOCKS FOLLOWED BONDS LOWER BUT POSITIVE ECONOMIC NEWS AND STRENGTH IN OIL SHARES BLUNTED THE EQUITY MARKET'S LOSSES THE DOW JONES INDUSTRIAL AVERAGE MANAGED A GAIN OF 251 TO 375660 AIDED BY ISSUES INCLUDING ALUMINUM CO OF AMERICA UP 1 1/4 TO 70 5/8 AND CHEVRON UP 7/8 TO 88 BUT BROADBASED INDEXES RETREATED AND DECLINERS TOPPED ADVANCERS 1318 TO 902 ON THE NEW YORK STOCK EXCHANGE THE NASDAQ COMPOSITE INDEX MEANWHILE DROPPED 604 OR 078 TO 77076 VOLUME ON THE BIG BOARD WAS RELATIVELY ACTIVE AT ABOUT 269161230 SHARES WELL ABOVE THE 167622790 SHARES IN FRIDAY'S HOLIDAYAFFECTED TRADING A LOT OF PEOPLE ARE CONCERNED ABOUT THE RATES INCHING UP IN THE FIRST QUARTER SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX OF MANUFACTURING CONDITIONS ROSE TO 579 IN DECEMBER FROM 557 THE PRIOR MONTH THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING ADJUSTED FOR INFLATION INCREASED 12 IN NOVEMBER ITS SEVENTH STRAIGHT MONTHLY JUMP ALTHOUGH THE ECONOMIC NEWS SHOOK THE INFLATIONWARY BOND MARKET SOME STOCKS BENEFITED A SMATTERING OF STOCKS WHOSE FORTUNES ARE LINKED TO THE DIRECTION OF THE ECONOMY INCREASED AS DID MANY COMMODITIESRELATED ISSUES YESTERDAY WAS REALLY A MIXED DAY SAID PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES THE MARKET DID QUITE WELL CONSIDERING THE TRASHING THE BOND MARKET TOOK HE SAID MR CANELO SAID HE DOESN'T EXPECT STOCKS TO TUMBLE UNLESS LONG BOND YIELDS CLIMB ABOVE 65 AND STAY THERE THE STANDARD & POOR'S 500STOCK INDEX LOST 101 TO 46544 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WAS DOWN 081 TO 25827 AND THE DOW JONES EQUITY MARKET INDEX FELL 134 TO 44085 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 009 TO 47724 MR CANELO TIED THE WEAKNESS IN THE NASDAQ STOCK MARKET TO A SNAPBACK FROM THAT MARKET'S STRENGTH LAST WEEK THE NASDAQ COMPOSITE INDEX OUTPERFORMED BIG BOARD BAROMETERS FOUR STRAIGHT DAYS INCLUDING FRIDAY WHEN IT ROSE 074 DESPITE A 2179POINT DROP IN THE INDUSTRIAL AVERAGE TECHNOLOGY STOCKS HELPED TO DEPRESS NASDAQ INTEL WAS DOWN 3/4 TO 61 1/4 AND MICROSOFT LOST 1/2 TO 80 1/8 BUT THE GROUP OVERALL WAS MIXED WHILE MOTOROLA SKIDDED 3 5/8 TO 88 5/8 INTERNATIONAL BUSINESS MACHINES ADDED 1 1/8 TO 57 5/8 BOTH ON THE BIG BOARD TOYS R US LOST 7/8 TO 40 THE PARAMUS NJ RETAILER SAID SALES WERE UP 149 IN THE EIGHT WEEKS LEADING UP TO CHRISTMAS RECEIPTS FROM US LOCATIONS THAT HAVE BEEN OPEN AT LEAST A YEAR GAINED 74 SEPARATELY ITS VICE CHAIRMAN MICHAEL GOLDSTEIN WAS NAMED CHIEF EXECUTIVE OFFICER SUCCEEDING CHARLES LAZARUS WHO REMAINS CHAIRMAN FEDERATED DEPARTMENT STORES JUMPED 2 TO 22 3/4 ON HEAVY VOLUME OF FOUR MILLION SHARES THE CINCINNATI COMPANY IS SEEKING TO ACQUIRE CONTROL OF RH MACY & CO AND HOPES TO MERGE ITS OPERATIONS WITH THE NEW YORK RETAILER SUCH A MOVE WOULD CREATE THE US'S LARGEST DEPARTMENT STORE CHAIN WALMART INCHED UP 1/2 TO 25 1/2 AFTER AG EDWARDS & SONS UPGRADED ITS INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD AG EDWARDS CITED RECENT WEAKNESS IN THE BENTONVILLE ARK RETAILER'S SHARE PRICE OTHER RETAILING STOCKS WERE MIXED SEARS ROEBUCK DROPPED 1 5/8 TO 51 1/4 AND DILLARD DEPARTMENT STORES LOST 2 TO 36 BUT WOOLWORTH ADDED 3/4 TO 26 1/8 AND MAY DEPARTMENT STORES ROSE 1/2 TO 39 7/8 TELEFONOS DE MEXICO'S AMERICAN DEPOSITARY RECEIPTS SLUMPED 2 TO 65 1/2 MOVING IN TANDEM WITH THE MEXICAN STOCK MARKET WORRIES OVER AN ARMED CLASH BETWEEN PEASANTS AND SOLDIERS IN SOUTHERN MEXICO HELPED TO DEPRESS SHARES ON THAT COUNTRY'S STOCK MARKET CML GROUP LOST 1 5/8 TO 22 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED SOME INVESTORS ARE WORRIED ABOUT CONTINUED EARNINGS GROWTH AT THE ACTON MASS COMPANY THEY ARE CONCERNED THAT CML MAY SOON SATURATE THE MARKET FOR ITS NORDICTRACK EXERCISE MACHINES IT HAS SOLD 15 MILLION MACHINES TOBACCO STOCKS ADVANCED RJR NABISCO ADDED 3/8 TO 6 3/4 ON A HEAVY 48 MILLION SHARES PHILIP MORRIS ROSE 2 TO 57 5/8 AND AMERICAN BRANDS INCREASED 5/8 TO 33 7/8 PLACER DOME JUMPED 2 3/4 TO 27 5/8 AND FREEPORTMCMORAN COPPER & GOLD ADDED 1/2 TO 25 1/2 A SMITH BARNEY SHEARSON ANALYST INITIATED COVERAGE OF BOTH MINING ISSUES WITH A BUY OPINION 9401040106 940104 NATIONAL COMPUTER SEES PRETAX CHARGE FOR ITS 4TH QUARTER BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS NATIONAL COMPUTER SYSTEMS INC SAID IT WILL TAKE A PRETAX CHARGE OF AS MUCH AS 25 MILLION IN ITS FISCAL FOURTHQUARTER MAINLY TO COVER COSTS OF DROPPING AN AMBITIOUS SOFTWARE PRODUCT IT BEGAN WORK ON IN 1988 BUT NEVER FORMALLY INTRODUCED THE 22 MILLION TO 25 MILLION CHARGE WOULD REDUCE AFTERTAX EARNINGS 1 A SHARE SAID A SPOKESMAN THAT WOULD ERASE FOURTHQUARTER EARNINGS AND DROP EARNINGS FOR THE YEAR ENDING JAN 31 TO ABOUT BREAKEVEN LEVEL OF THE CHARGE ABOUT 23 MILLION IS LINKED TO COSTS INCLUDING STAFF CUTBACKS ASSOCIATED WITH THE INFORMATIONSERVICES COMPANY'S PLANS TO DISCONTINUE ITS ULTRUST PRODUCT ULTRUST WAS DESIGNED FOR LARGE BANKS THAT HANDLE TRUSTACCOUNT INVESTMENTS INVOLVING MULTIPLE CURRENCIES BUT THE PROJECT WAS TECHNICALLY CHALLENGING AND DESIGN AND CODING DELAYS PUSHED BACK THE MARKET DEBUT OF THE PROJECT FROM ITS ORIGINALLY ANTICIPATED 1992 ROLLOUT THE OFFICIAL OVERSEEING THE COMPANY SEGMENT IN WHICH THE PROJECT WAS CARRIED RESIGNED IN MID1993 THE DECISION TO TERMINATE THE ULTRUST PRODUCT THE COMPANY SAID IS BASED ON OUR ANALYSIS OF THE MARKET'S REQUIREMENTS FOR A SOFTWARE PRODUCT OF THIS SCOPE IT HAS BECOME APPARENT THAT ULTRUST COULD NOT PROVIDE THE LEVEL OF CUSTOMIZED FUNCTIONALITY THAT CUSTOMERS IN THIS SEGMENT OF THE MARKET DEMAND A SPOKESMAN SAID WE WERE TRYING TO SELL A PACKAGED SOLUTION TO A CUSTOMIZED MARKET AS IT TURNS OUT AND DESPITE THE SUCCESS THE COMPANY HAS HAD WITH OTHER SOFTWARE PRODUCTS FOR THE TRUST INDUSTRY THAT HURDLE COULDN'T BE OVERCOME IN ADDITION THE COMPANY NOTED THAT RAPID CHANGES IN TECHNOLOGY IN THE LARGEST US AND INTERNATIONAL BANKS PRIMARILY A SHIFT AWAY FROM MAINFRAMEORIENTED SYSTEMS IN FAVOR OF NETWORKS OF SMALLER COMPUTERS WOULD LIMIT THE POTENTIAL FOR ULTRUST GOING FORWARD THROUGH THE FIRST NINE MONTHS ENDING OCT 31 NATIONAL COMPUTER HAS REPORTED NET OF 75 MILLION OR 48 CENTS A SHARE IN THE YEARAGO FOURTH QUARTER ENDED JAN 31 1993 THE COMPANY HAD NET OF 64 MILLION OR 40 CENTS A SHARE ANALYSTS EXPECT FOURTHQUARTER EARNINGS OF 47 CENTS TO 48 CENTS A SHARE TRADING IN THE NASDAQ STOCK MARKET WAS HALTED LATE IN YESTERDAY'S SESSION PENDING THE COMPANY'S DISCLOSURE THE LAST TRADE THAT PRECEDED THE COMPANY'S ANNOUNCEMENT WAS AT 1125 A SHARE UP 25 CENTS THE REMAINING 2 MILLION OF THE ANTICIPATED CHARGE IS TO COVER RESTRUCTURING THE ADMINISTRATIVESOFTWARE SEGMENT OF NATIONAL COMPUTER SYSTEMS' EDUCATION BUSINESS INCLUDING THE CLOSING OF THE SALT LAKE CITY SOFTWARE DEVELOPMENT OPERATION AND THE CONSOLIDATION OF PRODUCT DEVELOPMENT ACTIVITIES INTO THE COMPANY'S FACILITIES IN MESA ARIZ THE COMPANY SAID 9401040105 940104 BUSINESS BRIEF TORCHMARK CORP OIL AND GAS ASSETS ARE SOLD TO A UNIT OF NORCEN ENERGY A TORCHMARK CORP UNIT SAID IT SOLD ABOUT 106 MILLION IN OFFSHORE OIL AND GAS ASSETS IN THE GULF OF MEXICO TO A UNIT OF NORCEN ENERGY RESOURCES LTD OF CALGARY ALBERTA TORCH ENERGY ADVISORS INC BASED IN HOUSTON SAID THE TRANSACTION WAS COMPLETED DEC 30 AND RESULTED IN A PRETAX GAIN OF ABOUT 22 MILLION THE COMPANY SAID THE SALE INCLUDED 11 BLOCKS OF GAS AND OIL PROPERTIES WITH 128 PRODUCING WELLS 23 SUPPORT STRUCTURES AND OTHER PRODUCTION FACILITIES TORCHMARK BASED IN BIRMINGHAM ALA IS AN INSURANCE AND DIVERSIFIED FINANCIAL SERVICES HOLDING COMPANY 9401040104 940104 INTERNATIONAL MEXICO UPRISING MAY AID RIVAL FOR PRESIDENCY BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THE REBELLION IN SOUTHERN MEXICO EMBARRASSES THE RULING PARTY JUST AS ITS PRESIDENTIAL CANDIDATE WAS PREPARING TO START A CAMPAIGN THAT WAS EXPECTED TO DEMOLISH THE OPPOSITION POLITICAL ANALYSTS SAID THE CANDIDATE LUIS DONALDO COLOSIO IS A CLOSE FRIEND AND ALLY OF PRESIDENT CARLOS SALINAS DE GORTARI MR COLOSIO HAS BEEN EXPECTED TO REAP THE ELECTORAL BENEFITS FROM THE ASTONISHING TURNAROUND THAT HAS COME IN THE MEXICAN ECONOMY DURING THE SALINAS ADMINISTRATION HE IS IN FACT STILL THE ODDSON FAVORITE TO WIN THE RULING PARTY HASN'T LOST A PRESIDENTIAL ELECTION IN THE MORE THAN SIX DECADES OF ITS EXISTENCE BUT THE UPRISING CREATES A REAL PROBLEM FOR HIM ESPECIALLY IF THE SALINAS ADMINISTRATION HANDLES THE FIGHTING CALLOUSLY IN ANY CASE THE ATTACKS BY INDIAN PEASANTS WILL PROVIDE FUEL FOR THE SPUTTERING CAMPAIGN OF LEFTIST PRESIDENTIAL CANDIDATE CUAUHTEMOC CARDENAS BECAUSE IT WILL MAKE ONE OF HIS ISSUES THE ABJECT POVERTY IN MANY PARTS OF MEXICO A MUCH BIGGER FACTOR IN THE PRESIDENTIAL CAMPAIGN ALTHOUGH CARDENAS CAMPAIGN OFFICIALS DECLINED TO TALK ABOUT HOW THE CHIAPAS INSURRECTION WOULD AFFECT THEIR STRATEGY JORGE CASTANEDA A FRIEND OF THE CANDIDATE INDICATED THAT RECENT EVENTS WILL MAKE IT EASIER FOR MR CARDENAS TO GET PEOPLE TO LISTEN TO HIS CONCERNS ABOUT HOW MEXICO'S POOR HAVE STAYED POOR WHILE THE RICH HAVE BECOME BILLIONAIRES THIS SHOULD MAKE PEOPLE THINK ABOUT WHETHER CARDENAS IS THE LEFTWING FRINGE OR WHETHER HE IS MORE PRUDENT AND CHANNELS DISSENSION IN CONSTRUCTIVE WAYS SAID MR CASTANEDA AUTHOR OF A RECENT BOOK ON THE LATIN AMERICAN LEFT MR CASTANEDA ADDED THAT THE UPRISING LAYS TO REST ALL THIS NONSENSE ABOUT MEXICO MOVING INTO THE FIRST WORLD WHAT THIS SYMBOLICALLY SHOWS IS THAT MEXICO IS A COUNTRY OF ENORMOUS SOCIAL AND ECONOMIC INEQUALITY AND WITH NO LEGAL ADEQUATE ACCEPTABLE VEHICLES FOR GRIEVANCES TO BE EXPRESSED MR CARDENAS HIMSELF WAS QUICK TO MOVE ON THE OPPORTUNITY OVER THE WEEKEND SAYING IN A SPEECH THAT THE ELECTIONS OF 1994 OUGHT TO BE THE OPPORTUNITY TO ACHIEVE IN THE FRAMEWORK OF PEACE AND THE LAW THE CHANGE THAT SOCIETY DEMANDS HEAVY FIGHTING RAGED AGAIN YESTERDAY BETWEEN THE MEXICAN MILITARY AND A GROUP OF ARMED PEASANTS WHO CONTINUED THEIR WAR AGAINST THE GOVERNMENT AFTER TAKING OVER SIX TOWNS ON NEW YEAR'S DAY A PITCHED BATTLE WAS TAKING PLACE YESTERDAY IN THE TOWN OF OCOSINGO IN THE SOUTHERN STATE OF CHIAPAS TOGETHER WITH THE KNOWN DEATHS IN SUNDAY'S BATTLES AND THOSE THAT OCCURRED DURING THE TAKEOVER OF THE CITIES ON NEW YEAR'S DAY THE OFFICIAL DEATH TOLL IN THIS INCREASINGLY BLOODY REBELLION STOOD AT 86 YESTERDAY THE SALINAS ADMINISTRATION TRIED TO CALM THE CONCERN OVER CHIAPAS SAYING THAT THE GOVERNMENT HOPES TO FIND A MEDIATOR AND WANTS TO RESOLVE THE PROBLEMS PEACEFULLY MR COLOSIO THE PRESIDENTIAL CANDIDATE ALSO ISSUED A STATEMENT REITERATING HIS CAMPAIGN PLEDGE TO ATTACK MEXICO'S POVERTY THE STATEMENT ADDED THAT THE GOVERNMENT HAD VASTLY INCREASED THE AMOUNT OF MONEY SPENT ON SOCIAL PROGRAMS IN CHIAPAS MR COLOSIO IS IN FACT AS WELLPOSITIONED AS ANY MEMBER OF THE RULING INSTITUTIONAL REVOLUTIONARY PARTY TO ADDRESS THE POOR'S PROBLEMS HE WAS CHOSEN AS THE PRI CANDIDATE BECAUSE HE NOT ONLY EMBODIED THE SALINAS APPROACH TO ECONOMIC POLICY AND POSSESSED STRONG POLITICAL SKILLS BUT ALSO HAD A FOLLOWING AMONG THE POOR DEVELOPED WHEN HE RAN THE ANTIPOVERTY SOLIDARITY PROGRAM FOR THE PAST TWO YEARS AND TRAVELED THE COUNTRY TO HAND OUT GOVERNMENT LARGESSE TO POOR COMMUNITIES YESTERDAY THE NEW HEAD OF THE ANTIPOVERTY MINISTRY SAID THAT CHIAPAS REMAINS THE HIGHEST PRIORITY AND HAS RECEIVED 8 OF THE SOLIDARITY BUDGET EVEN THOUGH THE STATE CONTAINS 38 OF THE MEXICAN POPULATION BUT THE RULING PARTY WITH ITS WEALTHY BACKERS AND THE CURRENT GOVERNMENT'S FOCUS ON MACROECONOMIC POLICY HAS OFTEN SEEMED OUT OF TOUCH WITH THE CONCERNS OF THE POOR TWO YEARS AGO FOR EXAMPLE WHEN PRESIDENT SALINAS VISITED THE STATE HE LOOKED FOR PRAISE FOR HIS ELECTRICITY AND POTABLEWATER PROJECTS BUT THE INDIAN POPULATION DEMANDED RESOLUTION OF MOREIMMEDIATE ISSUES DISPUTES OVER LAND RIGHTS THAT HAD PRODUCED A WAVE OF RECENT ASSASSINATIONS CHIAPAS LIES AT THE GUATEMALAN BORDER AND WAS ONCE PART OF THAT CENTRAL AMERICAN COUNTRY IT IS HOME TO ONE OF MEXICO'S LARGEST CONCENTRATIONS OF INDIGENOUS PEOPLES LARGELY DESCENDANTS OF THE PROUD MAYAN EMPIRE WHO WERE SO DOWNTRODDEN THAT MANY WERE TAUGHT AS CHILDREN TO GET OFF THE SIDEWALKS AND WALK IN THE GUTTER ON THE APPROACH OF A WHITE PERSON AMID ALL THE POVERTY PETROLEOS MEXICANOS THE MEXICAN OIL GIANT HAS FOUND OIL AND NATURAL GAS AND GENERATES ENORMOUS PROFITS ALMOST ALL OF WHICH FLOW OUT OF THE STATE PEMEX CLOSED AN OFFICE IN THE AREA WHERE THE VIOLENCE HAS OCCURRED BUT A SPOKESWOMAN DECLINED TO COMMENT ON WHETHER ANY OF ITS HALFDOZEN WELLS IN THE AREA HAVE HAD TO SHUT DOWN VIOLENT DISPUTES OVER LAND ARE LEGION BETWEEN INDIAN CAMPESINOS AND THE LIGHTERSKINNED RANCHERS TIMBERMEN AND COFFEE GROWERS EVEN THOUGH CHIAPAS IS AN ODD CASE ANALYSTS OF BOTH OF MEXICO'S BIGGEST OPPOSITION PARTIES SAID THE BLOODY INSURRECTION WILL PUT A FLOODLIGHT ON THE SOCIAL INEQUITIES THROUGHOUT THE COUNTRY WHERE ALMOST 40 OF THE POPULATION LIVES IN POVERTY AND PREJUDICE AGAINST THOSE WITH MORE INDIAN BLOOD IS A FACT OF MEXICAN LIFE I SEE THIS AS AN ALARM CALL SAID BERTA LUJAN A SOCIAL ACTIVIST IN MEXICO CITY THERE ARE ZONES IN MEXICO OF DESPERATION 9401040103 940104 POLITICS & POLICY CLINTON PLANS STRATEGY TO PASS HEALTHCARE BILL BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON MET WITH HIS TOP ADVISERS TO PLAN STRATEGY FOR WINNING ENACTMENT THIS YEAR OF HIS BILL TO GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS THE HOURLONG SESSION IN THE WHITE HOUSE ROOSEVELT ROOM WAS ATTENDED BY HILLARY RODHAM CLINTON VICE PRESIDENT AL GORE SEVERAL CABINET SECRETARIES WHITE HOUSE HEALTH AIDE IRA MAGAZINER AND OTHERS AT THE MEETING THE PRESIDENT URGED OFFICIALS TO PUT ASIDE PARTISAN INTERESTS IN THE COMING DEBATE LET ME SAY I VERY VERY MUCH HOPE THAT THIS WILL BE A BIPARTISAN EFFORT THAT DEMOCRATS AND REPUBLICANS WILL BE WORKING TOGETHER AND THAT WE WILL RESOLVE IN THE NEW YEAR NOT TO FURTHER A PARTISAN INTEREST BUT TO FURTHER THE INTEREST OF THE PEOPLE WHO SENT US ALL HERE HE SAID IN OPENING REMARKS DISTRIBUTED TO REPORTERS IN A PRIVATE SESSION AFTERWARD OFFICIALS TALKED ABOUT THE NEED TO SPEAK WITH ONE VOICE IN THE HEALTHCARE BATTLE ACCORDING TO PEOPLE FAMILIAR WITH THE MEETING MRS CLINTON DISCUSSED THE ORGANIZATION OF ADMINISTRATION OFFICIALS INTO TEAMS INCLUDING GROUPS DESIGNATED TO DEVELOP COMMUNICATION AND LEGISLATIVE STRATEGIES THERE ALSO WAS DISCUSSION OF THE NEED FOR THE NUMEROUS FEDERAL AGENCIES INVOLVED IN THE HEALTHCARE EFFORT TO COORDINATE THEIR ACTIVITIES I BELIEVE THAT 1994 WILL GO DOWN IN HISTORY AS THE YEAR WHEN AFTER DECADES AND DECADES OF FALSE STARTS AND LAME EXCUSES AND BEING OVERCOME BY SPECIAL INTERESTS THE AMERICAN PEOPLE FINALLY FINALLY HAD HEALTH SECURITY FOR ALL MR CLINTON SAID IN HIS OPENING REMARKS ASKED BY A REPORTER HOW MUCH HE WILL BE WILLING TO COMPROMISE DURING THE LEGISLATIVE PROCESS MR CLINTON SAID I HAVE SAID ALL ALONG WHAT THE BOTTOM LINE IS COMPREHENSIVE HEALTH BENEFITS THAT CAN NEVER BE TAKEN AWAY 9401040102 940104 WHO'S NEWS NBT BANCORP INC NBT BANCORP INC NEW YORK RICHARD I LINHART 50 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF ADMINISTRATIVE OFFICER AT THE NATIONAL BANK & TRUST CO UNIT OF THIS BANK HOLDING COMPANY THE POST IS NEW ALSO FREDERICK H WEISMANN 45 EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER BECOMES CHIEF BANKING OFFICER ANOTHER NEW POSITION 9401040101 940104 WASTE COMPANY TAKES 32 PRICE CUT IN CONTRACT WITH BERGEN COUNTY NJ BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL BERGEN COUNTY NJ WON A 32 PRICE CUT ON A NEW THREEYEAR TRASHDISPOSAL CONTRACT THE LATEST SIGN THAT AN EASTCOAST GLUT OF DISPOSAL SPACE IS FORCING BIG CONCESSIONS FROM WASTE COMPANIES WALL STREET TRASHINDUSTRY ANALYSTS IN RECENT WEEKS HAVE SPOKEN HOPEFULLY THAT PRICES IN THE TRASH BUSINESS ARE FIRMING BUT THE HUGE BERGEN COUNTY CONTRACT COVERING ABOUT 330000 TONS A YEAR IS FRESH EVIDENCE THAT PRICES MIGHT NOT HAVE BOTTOMED OUT YET WASTE COMPANY PROFITS AND STOCK PRICES HAVE BEEN BATTERED IN RECENT MONTHS BY FALLING DISPOSAL PRICES IN SOME MARKETS AND LOWERTHANEXPECTED TRASH VOLUMES HUGE EXCESS DUMP CAPACITY IN PENNSYLVANIA AND VIRGINIA AND WASTE COMPANIES' INCREASING ABILITY TO ECONOMICALLY MOVE TRASH LONG DISTANCES IS HELPING MUNICIPALITIES AND OTHER BIG CUSTOMERS WRING LOWER DISPOSAL PRICES FROM HAULERS BERGEN'S RATE AS OF MARCH 1 1994 DROPS TO 4275 A TON FROM 63 A TON CHAMBERS DEVELOPMENT CO IN PITTSBURGH WAS AWARDED THE CONTRACT AND ALSO HAD THE PRIOR THREEYEAR JOB WHAT'S MORE THE CONTRACT KEEPS THE RATE FLAT AT 4275 FOR THE FULL THREE YEARS AND FOR TWO ONEYEAR RENEWALS BEYOND THAT IF THE COUNTY CHOOSES WE'RE VERY HAPPY SAID LARRY MCCLURE EXECUTIVE DIRECTOR OF THE BERGEN COUNTY UTILITIES AUTHORITY CHAMBERS WHICH SHIPS BERGEN TRASH BY RAIL TO ITS DUMP IN CHARLES CITY COUNTY VA ABOUT 300 MILES AWAY BEAT OUT FIVE OTHER WASTE CONCERNS TO KEEP THE WORK WMX TECHNOLOGIES INC IN OAK BROOK ILL AND THE LARGEST US HAULER BID 4832 A TON BROWNINGFERRIS INDUSTRIES INC NO 2 IN HOUSTON BID 55 A TON ACCORDING TO MR MCCLURE CHAMBERS SAID THE CONTRACT WILL STILL BE PROFITABLE FOR ONE THING ITS RAILSHIPPING COSTS HAVE DECLINED SINCE WINNING THE BERGEN WORK IN 1991 SAID WILLIAM RODGERS CHIEF FINANCIAL OFFICER AND THE CHARLES CITY COUNTY DUMP NOW TAKING ABOUT 4000 TONS A DAY OF TRASH OPERATES MORE EFFICIENTLY THAN BEFORE PROFIT MARGINS AT DUMPS INCREASE RAPIDLY AS VOLUMES RISE ABOVE A CERTAIN LEVEL BECAUSE MOST COSTS ARE FIXED CHAMBERS ESTIMATED THE CONTRACT WOULD GENERATE 47 MILLION IN REVENUE OVER ITS THREEYEAR SPAN THE 330000 TONS A YEAR IS HIGHER THAN THE PRIOR CONTRACT WHICH COVERED ABOUT 230000 TONS THE ADDED VOLUME WILL BE DIVERTED FROM A TRASH INCINERATOR IN NEW JERSEY CHAMBERS STOCK ROSE 3125 CENTS OR 78 TO CLOSE AT 43125 A SHARE IN AMERICAN STOCK EXCHANGE LATE TRADING WE'RE STILL GOING TO MAKE MONEY MR RODGERS SAID HE ALSO CONTENDED THAT BERGEN COUNTY MAY HAVE CAUGHT THE BOTTOM OF DISPOSAL PRICING I WOULD EXPECT PRICING TO FIRM UP THE CONTRACT COVERS SHIPPING THE TRASH FROM A TRANSFER STATION WHERE LOCAL HAULERS DUMP IN BERGEN COUNTY AND DISPOSING OF IT ELSEWHERE 9401040100 940104 BUSINESS BRIEF SEAGRAM CO US RIGHTS TO DISTRIBUTE VODKA ADVANCED 8 MONTHS SEAGRAM CO REACHED AN AGREEMENT WITH GRAND METROPOLITAN PLC TO GIVE SEAGRAM EARLY DISTRIBUTION RIGHTS TO ABSOLUT VODKA IN THE US NEXT MONTH EIGHT MONTHS EARLIER THAN THE ORIGINAL AGREEMENT CALLED FOR TERMS OF THE SETTLEMENT WERE NOT DISCLOSED ALTHOUGH A SEAGRAM SPOKESMAN SAID THAT THE COMPANY PAID GRAND MET CONSIDERABLY LESS THAN 100 MILLION TO GAIN EARLIER ACCESS TO ABSOLUT MONTREALBASED SEAGRAM WON THE GLOBAL DISTRIBUTION RIGHTS TO ABSOLUT FROM BRITAIN'S GRAND METROPOLITAN AND ITS CARILLON IMPORTERS UNIT IN OCTOBER GRAND METROPOLITAN SAID IT SOON PLANS TO ANNOUNCE STEPS TO BOLSTER ITS CARILLON UNIT WHICH HAS BEEN SUBSTANTIALLY WEAKENED BY THE LOSS OF ABSOLUT THE GOAL IS TO REBUILD THE COMPANY SAID CARILLON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MICHEL ROUX VIN & SPRIT AB THE SWEDISH COMPANY THAT OWNS ABSOLUT PLANS TO RETAIN THE BRAND'S AD AGENCY TBWA ADVERTISING 9401040099 940104 MARKETSCAN MAKERS OF FROZEN DIET ENTREES START SOME DIETS OF THEIR OWN BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL AS CONSUMERS BEGIN THEIR POSTHOLIDAY DIETS MARKETERS OF LOWCALORIE FROZEN FOODS ARE CUTTING BACK TOO FACED WITH INTENSE PRICE COMPETITION AND FICKLE CONSUMER DEMAND FOR DIET DINNERS SEVERAL OF THE BIGGEST FROZENFOOD COMPANIES ARE TRIMMING OVERSIZED PRODUCT LINES CONAGRA INC NO LONGER INCLUDES BREADED FISH PATTIES AND STICKS OR BREAKFAST SANDWICHES TURKEY HAM AND EGG SUBSTITUTE ON AN ENGLISH MUFFIN IN ITS HEALTHY CHOICE LINE AND IT HAS DISCONTINUED ITS ULTRA SLIMFAST FROZEN DINNERS MEANWHILE HJ HEINZ CO'S WEIGHT WATCHERS IS TRIMMING ITS STIRFRY LINE VEGETABLES MEAT AND RICE WITH MILD CHINESESTYLE SAUCE AND TAKING A HARD LOOK AT ITS ULTIMATE 200 LINE OF ENTREES SALES OF BOTH WEIGHT WATCHERS LINES PLUNGED LAST YEAR WE'RE ALL DOING FEWER NEW THINGS AND ARE PAYING MORE ATTENTION TO DOING A FEW THINGS BETTER SAYS JIM SMITH PRESIDENT OF CONAGRA'S FROZENFOOD BUSINESS HE AND OTHER MARKETERS HOPE TO STOP THE PRICE EROSION THAT HAS CUT SHARPLY INTO PROFITS LAST YEAR THE PRICES OF ALL MAJOR BRANDS' FROZEN DIET DINNERS AND ENTREES DROPPED AS A RESULT UNIT SALES GREW MUCH FASTER THAN DOLLAR SALES IN THE 52 WEEKS ENDED NOV 21 UNIT VOLUME WAS UP 8 WHILE DOLLAR SALES INCHED UP ONLY 12 TO 15 BILLION ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THERE ARE VERY FEW PEOPLE IN THE CATEGORY MAKING MUCH IN THE WAY OF PROFITS SAYS JOHN BAUER A FOOD INDUSTRY CONSULTANT MR BAUER WHO ONCE WORKED FOR CONAGRA AND HEINZ SAYS THAT IN THE LATE 1980S AND EARLY 1990S THERE WAS A FLOOD OF ILLCONCEIVED PRODUCTS THAT REACHED THE MARKETPLACE CHICKEN FOR INSTANCE CAME BAKED BROILED OR GRILLED WITH A VARIETY OF SAUCES AND SERVED WITH RICE OR POTATOES OR OVER PASTA RANGING IN TOTAL CALORIES FROM LESS THAN 200 TO TWICE THAT THE RESULT JUMBLED OVERCROWDED FREEZER CASES WHAT'S HAPPENING NOW IS THE STRONGER BRANDS ARE EVALUATING INDIVIDUAL ITEMS AS WELL AS LINE EXTENSIONS INTO NEW AREAS MR BAUER SAYS THERE'S A MORE RATIONAL APPROACH NOW TO ENTERING THE MARKET YET MARKETERS STILL HAVE TO CONTEND WITH CONSUMERS' OFTEN IRRATIONAL APPROACH TO DIETING WE'RE HEARING MORE IN FOCUS GROUPS ABOUT WOMEN RESENTING THE EMPHASIS ON WEIGHT LOSS BUT AT THE SAME TIME THERE'S A DESIRE TO LOOK THIN AND LOSE WEIGHT SAYS JUDITH LANGER AN EXPERT ON CONSUMER BEHAVIOR THE BEGINNING OF THE YEAR HOWEVER IS ALWAYS A TIME TO LAUNCH INTO THE NEW BETTER ME MS LANGER ADDS FOR EXAMPLE STEVE HARRIS A PERENNIAL DIETER WHO LOST 22 POUNDS BEFORE CHRISTMAS BUT ATE TOO MUCH OVER THE HOLIDAYS IS NOW BACK TO FROZEN DINNERS IF I HAD A CHOICE I WOULDN'T BE EATING THEM I EAT THEM STRICTLY TO STAY ON TRACK SAYS MR HARRIS A STRATFORD CONN RESIDENT TO REACH SUCH DIETERS MARKETERS ARE TRYING TO PRESENT A CLEARER STRONGER BRAND IMAGE WEIGHT WATCHERS HAS SETTLED ON A WEIGHTLOSS THEME THIS SEASON RATHER THAN TRYING TO ATTRACT ANYONE LOOKING FOR HEALTHY FOOD WE'VE GONE BACK TO BASICS SAYS BRIAN RUDER PRESIDENT OF WEIGHT WATCHERS FOOD CO MORE THAN 10 MILLION HAS BEEN BUDGETED FOR A NEW MARKETING CAMPAIGN LOSE 10 LBS AMERICA CHALLENGE THAT FEATURES A GIVEAWAY FOR EVERY 20 WEIGHT WATCHERS PRODUCTS PURCHASED A CONSUMER RECEIVES A 10 VOUCHER TO SPEND IN PARTICIPATING SUPERMARKETS CONAGRA HOPES TO INCREASE ITS HEALTHY CHOICE BRAND'S IMPACT BY BUNCHING ITS PRODUCTS TOGETHER IN THE FREEZER CHEST AND CREATING A SEA OF GREEN AND INSTEAD OF ADVERTISING FROZEN ENTREES ONE WEEK AND HOT DOGS OR KETCHUP THE NEXT HEALTHY CHOICE WILL PROMOTE ITS ENTIRE LINE OF PRODUCTS IN ONE AD BUDGET GOURMET WHICH INCLUDES A LIGHT AND HEALTHY VARIETY IS STRUGGLING TO REGAIN ITS BUDGET IDENTITY ALL BUT LOST IN THE RECENT STEEP PRICE CUTTING BY COMPETITORS THE BRAND MADE BY PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT HAS BEGUN NATIONAL TV ADVERTISING FOR THE FIRST TIME AND CUT PRICES MEANWHILE BUDGET GOURMET HAS ELIMINATED ITS LOWCALORIE LARGEPORTION HEARTY AND HEALTHY DINNERS AND KRAFT HAS ELIMINATED ITS EATING RIGHT ENTREES WE LOST OUR FOCUS BUT WE'RE BACK SAYS SPOKESWOMAN LINDA EATHERTON MEANWHILE YEAROLD TYSON HEALTHY PORTION IS GOING AFTER THE STARVING DIETERS WHO AFTER WOLFING DOWN 75OUNCE ENTREES WONDER WHAT'S FOR DINNER ITS NEARLY 14OUNCE REDUCEDFAT SERVINGS ARE ABOUT TWICE THE SIZE OF MANY LOWCAL ENTREES AND HIGHER IN TOTAL CALORIES THAN OTHER MEALS CONSUMERS WERE SAYING GIVE ME TWO OF THOSE THINGS' SAYS JACK DUNN TYSON FOODS INC'S VICE PRESIDENT FOR SALES AND MARKETING RETAIL WE'RE GOING SPECIFICALLY AFTER THAT CONSUMER WHO FEELS LIKE THE MEALS ARE A LITTLE TOO LIGHT BUT THEY WANT TO EAT HEALTHY FOR SOME CONSUMERS THOUGH LESS IS BETTER STUART KAPLAN A SINGLE 34YEAROLD ATTORNEY SAYS HE EATS LOWCAL FROZEN DINNERS FOUR NIGHTS A WEEK WHEN HE GETS HOME FROM WORK WHICH IS USUALLY AROUND 10 PM MR KAPLAN SAYS HE GAINED ABOUT FIVE POUNDS IN DECEMBER AND HAS MADE A RESOLUTION TO LOSE IT DURING THE NEW YEAR HOW WILL HE LOSE IT I'VE MADE A RESOLUTION TO NOT EAT THE DESSERT PORTION OF MY HEALTHY CHOICE DINNERS HE SAYS IT MAY TAKE HIM A WHILE THE AVERAGE DESSERT HAS ONLY 60 CALORIES 9401040097 940104 ECONOMY INDIVIDUALS PLAN HEFTY STOCK BUYING DESPITE EXPECTED RATE RISE STUDY SAYS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOST INDIVIDUAL INVESTORS EXPECT INTEREST RATES TO SPIKE UP THIS YEAR YET 68 OF THEM PLAN TO BUY STOCKS SOON AND ARE COUNTING ON FAT RETURNS A NEW PAINEWEBBER GROUP INC SURVEY SAYS THE SURVEY'S RESULTS BASED ON A POLL LAST MONTH OF 5000 PAINEWEBBER BROKERAGE CUSTOMERS SUGGEST THAT SOME INVESTORS COULD BE IN FOR A RUDE SHOCK IF HIGHER RATES JAR THE STOCK MARKET THE REALITY PRINCIPLE HAS BEEN DISCOUNTED BY A LOT OF INVESTORS SAYS MICHAEL METZ INVESTMENT STRATEGIST AT OPPENHEIMER & CO TO EXPECT HIGHER INTEREST RATES AND GET HIGH RETURNS FROM STOCKS IS SHOCKINGLY INCONSISTENT MR METZ SAYS HIGHER INTEREST RATES TYPICALLY MAKE RETURNS ON INTERESTSENSITIVE INVESTMENTS SUCH AS CERTIFICATES OF DEPOSIT MORE ATTRACTIVE RELATIVE TO STOCKS HIGHER RATES ALSO INCREASE CORPORATE AMERICA'S BORROWING COSTS AND CAN HURT COMPANIES' BOTTOM LINES INDEED THE FUEL FOR THE CURRENT STOCKMARKET RALLY NOW NEARLY THREE YEARS OLD HAS BEEN SINKING INTEREST RATES WHICH LAST YEAR HIT THEIR LOWEST LEVEL IN 30 YEARS THE PAINEWEBBER SURVEY WHICH WILL BE RELEASED TODAY SHOWS THAT INVESTORS' PROPENSITY TO INVEST IN THE STOCK MARKET IS AT THE HIGHEST LEVEL IN 2 1/2 YEARS ROUGHLY 68 OF THOSE POLLED EXPECT TO BUY STOCKS OR STOCK MUTUAL FUNDS IN THE NEXT 90 DAYS THIS COMPARES WITH 549 A YEAR EARLIER THE SURVEY SAYS AT THE SAME TIME INTEREST IN CDS AND OTHER CASHEQUIVALENT INVESTMENTS REMAINS LOW DESPITE THE BELIEF AMONG A HEALTHY MAJORITY OF INVESTORS THAT INTEREST RATES WILL MOVE UP IN 1994 PAINEWEBBER SAYS JUST 86 OF INVESTORS PLAN TO BUY CDS IN THE NEXT THREE MONTHS THE SURVEY SAYS DOWN FROM 92 A YEAR AGO PEOPLE ARE STILL LOOKING TO THE STOCK MARKET DESPITE THE IMPENDING THREAT OF HIGHER RATES SAYS SHAILENDRA GHORPADE WHO DIRECTS PAINEWEBBER'S MONTHLY SURVEY OF A SAMPLE OF ITS CUSTOMERS THOUGH INVESTORS BELIEVE THAT RATES WILL MOVE HIGHER THE INCREASE WON'T BE ENOUGH TO GIVE THEM BACK THE INCOME THEY WOULD LOSE BY REMAINING INVESTED IN CDS AND OTHER CASH EQUIVALENTS HE SAYS THAT'S BECAUSE THE GAP BETWEEN RETURNS ON CASH EQUIVALENTS AND STOCKS REMAINS HUGE SO EVEN IF THE CHASM NARROWS IT WOULD STILL PAY TO INVEST IN STOCKS MANY INVESTORS BELIEVE SIXMONTH CDS ARE YIELDING LESS THAN 275 ON AVERAGE AND MONEY FUNDS ARE ONLY FRACTIONALLY HIGHER ON ONEYEAR CDS THE AVERAGE YIELD IS BELOW 3 MEANWHILE THE DOW JONES INDUSTRIAL AVERAGE LEAPT 137 IN 1993 AND CLOSED AT A RECORD HIGH NO LESS THAN 33 TIMES DURING THE YEAR FOR 1994 INVESTORS CITED US GROWTH STOCKS AND FOREIGN STOCKS OR MUTUAL FUNDS AS AMONG THE BEST BUYS FOR INSTANCE INVESTORS IN THE SURVEY EXPECT TO PLUNK DOWN NEARLY 32 OF THEIR PORTFOLIO MONEY INTO FOREIGN STOCKS OR MUTUAL FUNDS THIS YEAR LAST YEAR THROUGH NOVEMBER INVESTORS BOUGHT A NET 209 BILLION OF INTERNATIONAL STOCK FUNDS MORE THAN FOUR TIMES THE TOTAL FOR ALL OF 1992 ACCORDING TO THE INVESTMENT COMPANY INSTITUTE A TRADE GROUP WHATEVER THEY BUY MANY INVESTORS SEEM TO BE EXPECTING PLUMPER TIDINGS THIS YEAR THE PAINEWEBBER SURVEY SHOWS PAINEWEBBER CUSTOMERS POLLED EXPECT AN AVERAGE TOTAL RETURN PRICE CHANGE PLUS DIVIDENDS OF 111 THIS YEAR COMPARED WITH 105 IN 1993 STOCKS HISTORICALLY HAVE AVERAGED ABOUT A 10 ANNUAL TOTAL RETURN 9401040096 940104 MARKETING & MEDIA ADVERTISING SEARS SEEKING TO CHANGE IMAGE PLANS TO SPONSOR PHIL COLLINS TOUR BY KEVIN GOLDMAN THINK OF SEARS AND ROCKANDROLL DOESN'T EXACTLY COME TO MIND BUT ADAMANT ABOUT CHANGING ITS STODGY IMAGE SEARS ROEBUCK IS EXPECTED TO ANNOUNCE SHORTLY THAT IT WILL BE THE EXCLUSIVE SPONSOR OF PHIL COLLINS'S US TOUR SCHEDULED TO BEGIN IN MAY IT MARKS THE FIRST TIME SEARS HAS EMBARKED ON SUCH A MARKETING PLOY BY SIGNING WITH THE POPULAR SINGER WHO IS ALSO THE LEAD SINGER AND DRUMMER FOR THE SUCCESSFUL GROUP GENESIS SEARS HOPES TO GET ITS NAME AND ITS MESSAGE OUT TO A POTENTIALLY NEW AUDIENCE THOSE WHO FREQUENT ROCK CONCERTS AND ARENAS SEARS ISN'T TAKING TOO MANY CHANCES THOUGH IT IS SPONSORING A SAFE MILDMANNERED PERFORMER ESCHEWING A HEAVY METAL OR CONTROVERSIAL BAND AND OF COURSE IT REMAINS TO BE SEEN WHETHER CONCERTGOERS WILL BECOME SEARS SHOPPERS A SEARS SPOKESMAN DECLINED TO COMMENT BUT THE ALLIANCE WAS CONFIRMED YESTERDAY BY A SEARS OFFICIAL FINANCIAL TERMS OF THE DEAL COULDN'T BE DETERMINED DON'T LOOK FOR THE AFFABLE MR COLLINS TO POP UP IN SEARS COMMERCIALS SAYS THE OFFICIAL WHO DIDN'T WANT TO BE QUOTED BY NAME MR COLLINS COULD APPEAR IN SOME SEARS STORES DURING THE TOUR AND THERE MAY BE CONTESTS IN WHICH CONCERT TICKETS WOULD BE AWARDED SEARS EMPLOYEES AND CUSTOMERS ALSO MAY BE ALLOWED AT MR COLLINS'S REHEARSALS HOURS BEFORE A CONCERT KNOWN IN THE INDUSTRY AS SOUND CHECKS THERE WILL BE A HEAVY SEARS PRESENCE AT EACH CONCERT INCLUDING BANNERS NEAR THE STAGE AND POSTERS THROUGHOUT THE STADIUM IN ADDITION SEARS WILL SELL MR COLLINS'S LATEST ALBUM BOTH SIDES AT ITS BRAND CENTRAL DEPARTMENTS IT IS THE FIRST TIME COMPACT DISKS WILL BE SOLD AT BRAND CENTRAL DEPARTMENTS WHICH SELL APPLIANCES AND CONSUMER ELECTRONICS BRAND CENTRAL WON'T SELL ANY OTHER RECORD EITHER FROM MR COLLINS OR ANYONE ELSE THESE DAYS IT'S COMMON FOR ROCKANDROLL GROUPS WHO ONCE EPITOMIZED REBELLION AGAINST THE SOCALLED ESTABLISHMENT TO BECOME PARTNERS WITH BIG BUSINESS VISA SPONSORED FORMER BEATLE PAUL MCCARTNEY'S 1990 US TOUR A DEAL THAT INCLUDED MR MCCARTNEY'S APPEARANCE IN VISA TELEVISION ADS THE ROLLING STONES SIGNED DEALS WITH A NUMBER OF SPONSORS INCLUDING ANHEUSERBUSCH FOR ITS 1989 STEEL WHEELS TOUR THE STONES ALSO LICENSED A CLOTHING LINE SOLD IN JC PENNEY STORES MR COLLINS HIMSELF IS NO STRANGER TO COMMERCIALIZATION HE WAS THE STAR IN TWO ADS FOR MICHELOB FROM ANHEUSERBUSCH FROM 1985 THROUGH 1987 MICHELOB ALSO SPONSORED A GENESIS TOUR IN 1985 SEARS'S SPONSORSHIP IS THE SECOND PHASE OF AN AGGRESSIVE MARKETING CAMPAIGN THAT THE NATION'S NO 3 RETAILER LAUNCHED IN SEPTEMBER WITH ITS NEW ADVERTISING AGENCY YOUNG & RUBICAM THE ADS TURNED THE UNHIP IMAGE OF SEARS ON ITS EAR BY SPOTLIGHTING THE SOFTER SIDE IN ONE AD FOR INSTANCE A WOMAN SAYS SHE WENT TO SEARS FOR A DIE HARD CAR BATTERY AND INSTEAD PURCHASED A DRESS TO DIE FOR SEARS'S MAKEOVER APPEARS TO BE WORKING IN NOVEMBER SALES ROSE 93 TO 22 MILLION FROM THE YEAREARLIER PERIOD LAST MONTH CHAIRMAN EDWARD A BRENNAN SAID APPLIANCE AND HOMEFURNISHING SALES ALONG WITH STRONGER SALES IN THE COMPANY'S REFURBISHED WOMEN'S APPAREL DEPARTMENT CONTRIBUTED TO THE RESULTS MARKETING EXPERTS SAY SEARS MADE A WISE CHOICE WITH MR COLLINS IN THIS ERA OF HIGHLY FRAGMENTED MUSIC MR COLLINS IS A RARITY HE TRANSCENDS DEMOGRAPHICS APPEALING TO TEENAGERS AND MIDDLEAGED SHOPPERS THIS MAKES SENSE SAYS MARTY BLACKMAN OF BLACKMAN & RABER LTD IN NEW YORK WHICH CONSULTS WITH AD AGENCIES ON THE USE OF CELEBRITIES BUT ISN'T INVOLVED IN THE SEARS DEAL SEARS PICKED SOMEONE WHO IS SAFE THIS AIN'T PEPSI USING MADONNA OR MICHAEL JACKSON FOR THAT MATTER FOR A CHAIN STORE THAT IS TRYING TO ATTRACT YOUNG CONSUMERS SAYS MR BLACKMAN I APPLAUD IT THE ONE DOWNSIDE MR COLLINS'S LATEST ALBUM ISN'T EXACTLY TEARING UP THE CHARTS IT SOLD 500000 UNITS SINCE ITS RELEASE ABOUT SEVEN WEEKS AGO ACCORDING TO SOUNDSCAN A HARTSDALE NY COMPANY THAT TRACKS POINTOFSALE INFORMATION BUT THE ALBUM IS DROPPING ON THE CHARTS AND HASN'T MEASURED UP TO MR COLLINS'S PAST SUCCESSES THAT MAY NOT DETER PHIL COLLINS FANS FROM FLOCKING TO HIS CONCERTS HIS Q RATINGS WHICH MEASURE CONSUMER AWARENESS AND POPULARITY ARE EXCEPTIONAL SAYS STEVEN LEVITT PRESIDENT OF MARKETING EVALUATIONS/TVQ IN PORT WASHINGTON NY THE AVERAGE Q RATING FOR A MALE MUSICIAN ACCORDING TO MR LEVITT IS 19 MR COLLINS BOASTS A Q RATING OF 34 AMONG ADULTS AGES 18 AND OLDER AMONG THE DESIRABLE DEMOGRAPHIC OF WOMEN 18 TO 34 HIS RATING IS 48 AMONG MALES 18 TO 34 MR COLLINS SCORES 33 SEARS'S TIEIN WITH MR COLLINS CERTAINLY SHOWS NEW MARKETING SAVVY IT WASN'T THAT LONG AGO THAT SEARS TRIED TO APPEAL TO CONSUMERS BY PUTTING OUT CLOTHING LINES WITH CELEBRITIES WHO WERE CLEARLY NOT ON THE CUTTING EDGE PEOPLE LIKE STEFANIE POWERS AND CHERYL TIEGS DON'T WORRY THOUGH SEARS ISN'T GETTING TOO HIP ITS PRODUCT TIEIN WITH BOB VILA THE JOVIAL HOST OF A DOWNTOEARTH HOME IMPROVEMENT SHOW CONTINUES ACCOUNTS VAN HEUSEN A UNIT OF PHILLIPSVAN HEUSEN HAS ASSIGNED ITS APPAREL ACCOUNT TO WEISS WHITTEN STAGLIANO NEW YORK THE AGENCY SAID BILLINGS ARE 10 MILLION HOWEVER THE ACCOUNT BILLED LESS THAN 1 MILLION IN THE FIRST NINE MONTHS OF 1993 ACCORDING TO COMPETITIVE MEDIA REPORTING INTERPUBLIC GROUP'S LINTAS PREVIOUSLY HANDLED THE VAN HEUSEN ACCOUNT ATARI SUNNYVALE CALIF TAPPED HOFFMAN/LEWIS SAN FRANCISCO TO HANDLE US ADVERTISING INCLUDING AN EFFORT FOR ITS NEW JAGUAR GAME SYSTEM WHO'S NEWS JOHN RUSSO CREATIVE DIRECTOR AT MCKINNEY & SILVER WAS NAMED PRESIDENT OF THE RALEIGH NC AGENCY HE SUCCEEDS ROBERT DOHERTY WHO REMAINS THE AGENCY'S CHIEF EXECUTIVE OFFICER AND TAKES THE ADDITIONAL TITLE OF CHAIRMAN WHICH HAD BEEN VACANT SINCE 1991 9401040095 940104 GM'S CHIEF ECONOMIST SOUNDS A NOTE OF CAUTION ON VEHICLE SALES FOR 1994 BY DOUGLAS LAVIN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT IN THE FACE OF A RISING EUPHORIA IN THE AUTO INDUSTRY ABOUT THE OUTLOOK FOR SALES OF USBUILT CARS AND LIGHT TRUCKS ONE BIG PLAYER IS SOUNDING A NOTE OF CAUTION AS THE NORTH AMERICAN INTERNATIONAL AUTO SHOW OPENS HERE THIS WEEK GEORGE EADS THE CHIEF ECONOMIST OF GENERAL MOTORS CORP FORECAST THAT 1994 VEHICLE SALES WOULD RISE TO ONLY 148 MILLION UNITS UP FROM ABOUT 14 MILLION FOR 1993 FORD MOTOR CO'S TOP ECONOMIST IS PREDICTING ABOUT 15 MILLION SALES AND THE CHRYSLER CORP ECONOMIST IS FORECASTING 156 MILLION SEPARATELY CHRYSLER PRICED ITS NEW NEON SMALL CAR AT 8975 FOR THE BASE MODEL ABOUT IN LINE WITH EXPECTATIONS AND WELL BELOW THE PRICES OF COMPETING MODELS CHRYSLER ALSO SAID IT PLANS TO BUILD A SECOND VERSION OF ITS EXPENSIVE LOWVOLUME SPORTS CAR THE VIPER MR EADS THE GM ECONOMIST MADE HIS FORECAST AT A CONFERENCE AS DETROIT STARTED KICKING OFF ITS SHOWCASE EVENT OF THE YEAR AFTER A YEAR DURING WHICH JAPANESE CAR MAKERS WERE HURT BY A STRONG YEN WHICH GAVE THE BIG THREE A COST ADVANTAGE OF AROUND 2000 A CAR DETROIT AUTO MAKERS ARE GENERALLY EBULLIENT BUT MR EADS SAID HE IS CONCERNED THAT THE FEDERAL RESERVE WILL OVERREACT TO SIGNS OF A GROWING ECONOMY BY RAISING INTEREST RATES TO HOLD INFLATION IN CHECK IN RESPONSE TO QUESTIONS HE SAID THAT FED STAFF MEMBERS CALLED GM TO EXPRESS CONCERN ABOUT RAPID GROWTH IN AUTO PRODUCTION AND POSSIBLE OVERHEATING OF THE ECONOMY THE FED SAID MR EADS INITIATED THE CONTACT MR EADS ALSO DIFFERED WITH HIS FORD AND CHRYSLER COUNTERPARTS ON WHERE VEHICLE SALES WOULD PEAK DURING THIS BUSINESS CYCLE REFLECTING HIS BELIEF THAT THE FED WILL TIGHTEN CREDIT MR EADS SAID HE EXPECTS VEHICLE SALES TO TOP OUT AROUND 16 MILLION UNITS COMPARED WITH FORD AND CHRYSLER PROJECTIONS THAT SALES COULD HIT 17 MILLION UNITS OR MORE IN THE NEXT TWO TO THREE YEARS AT 8975 THE CHRYSLER NEON WILL UNDERCUT THE BASE FOURDOOR HONDA CIVIC AT 11750 AND THE BASE FOURDOOR SATURN AT 9995 BUT CHRYSLER ACKNOWLEDGED THAT ONLY ABOUT 10 OF THE 300000 NEONS IT COULD SELL EACH YEAR WILL BE THE BASE MODEL CHRYSLER SAYS THE BULK OF THE NEW CARS WILL SELL FOR ABOUT 12000 A FULLY LOADED VERSION OF THE BASE CAR WILL SELL FOR ABOUT 12500 AND A SIMILARLY EQUIPPED SPORT VERSION OF THE CAR WITH A MORE POWERFUL ENGINE AND A SPORTIER SUSPENSION WILL SELL FOR ABOUT 13000 CHRYSLER BEGAN SHIPPING FOURDOOR NEONS TO DEALERS THIS WEEKEND IT WILL BEGIN BUILDING TWODOOR VERSIONS IN AUGUST EARLIER THAN PREVIOUSLY PLANNED AND WILL ALSO BUILD A RIGHTHANDDRIVE VERSION OF THE CAR FOR EXPORT SEPARATELY CHRYSLER SAID THAT IT WILL BUILD A SECOND VERSION OF ITS VIPER SPORTS CAR THE DODGE VIPER GTS COUPE WHICH UNLIKE THE ORIGINAL VIPER WILL HAVE A HARDTOP THE GTS COUPE ALSO WILL SELL FOR MORE THAN THE VIPER'S 55000 PRICE THE COMPANY ALSO IS CONSIDERING BUILDING THE PLYMOUTH PROWLER A SPORTY CAR THAT LOOKS LIKE A 1950S HOT ROD LIKE THE VIPER IT WOULD BE INTENDED MORE TO ENHANCE CHRYSLER'S IMAGE THAN TO PROVIDE A LOT OF VOLUME 9401040094 940104 BUSINESS BRIEF BELLWETHER EXPLORATION CO PURCHASE OF ASSOCIATED GAS FOR STOCK CASH IS COMPLETE BELLWETHER EXPLORATION CO HOUSTON SAID IT COMPLETED THE ACQUISITION OF ASSOCIATED GAS RESOURCES INC FOR 114 MILLION NEWLY ISSUED BELLWETHER SHARES AND 232000 ALLSTATE CORP'S ALLSTATE INSURANCE CO RECEIVED 107 MILLION OF THE SHARES WHICH REPRESENT 36 OF BELLWETHER'S SHARES OUTSTANDING A SUBSIDIARY OF TORCH ENERGY ADVISORS INC AND TWO AFFILIATES OF TORCH RECEIVED 633000 SHARES OF BELLWETHER COMMON STOCK IN EXCHANGE FOR THEIR ASSOCIATED GAS SHARES TORCH WHICH IS AN AFFILIATE OF BELLWETHER RECEIVED WARRANTS TO ACQUIRE 15 MILLION SHARES OF BELLWETHER COMMON STOCK AT A PRICE OF 80 CENTS A SHARE FOR ITS SERVICES RENDERED IN IDENTIFYING AND STRUCTURING THE TRANSACTION THE WARRANTS EXPIRE DEC 31 1998 ASSOCIATED GAS OWNS A 300MILE NATURALGASGATHERING SYSTEM AND INTERESTS IN OIL AND GAS WELLS INCLUDING ABOUT 670 GAS WELLS IN LOUISIANA AND INTERESTS IN ABOUT 137 OIL AND GAS WELLS IN OKLAHOMA BELLWETHER IS AN OIL AND GAS EXPLORATION AND DEVELOPMENT COMPANY 9401040093 940104 LAW LEGAL BEAT FEDERATED MAY FACE SHARP CURBS AS A MAJOR CREDITOR OF RH MACY BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL IN PURCHASING A HUGE CREDITOR'S STAKE IN RH MACY & CO FEDERATED DEPARTMENT STORES INC MAY ALSO HAVE BOUGHT ITSELF A SHARPLY LIMITED ROLE IN MACY'S BANKRUPTCYCOURT PROCEEDINGS FEDERATED ANNOUNCED SUNDAY THAT IT HAD PURCHASED HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S 1 BILLION IN SECURED CREDITOR CLAIMS AGAINST MACY AND THAT IT WILL SEEK TO ACQUIRE THE DEPARTMENTSTORE CHAIN BUT PREVIOUS CASES INVOLVING OTHER COMPANIES REVEAL THAT BANKRUPTCYCOURT JUDGES CAN EXERCISE BROAD POWERS TO KEEP ANY SINGLE CREDITOR FROM TAKING CONTROL OF A CORPORATE REORGANIZATION OR ADVANCING ITS INTERESTS OVER THOSE OF OTHER PARTICIPANTS FEDERATED MAY BE VERY DISAPPOINTED WHEN THEY TRY TO EXERCISE WHAT THEY'VE BOUGHT SAID HUGH RAY A BANKRUPTCY ATTORNEY AT HOUSTON LAW FIRM ANDREWS & KURTH HE PREDICTS THAT FEDERATED WEARING THE HATS OF CREDITOR MACY COMPETITOR AND POTENTIAL ACQUIRER WILL HAVE ITS MOTIVES SCRUTINIZED CLOSELY BY THE BANKRUPTCY COURT IT IS EXTREMELY PROBABLE THAT FEDERATED WILL FACE LIMITATIONS ON ITS ROLE AS CREDITOR SAID MR RAY THOSE RESTRICTIONS COULD INCLUDE LIMITS ON ACCESS TO CONFIDENTIAL INFORMATION ABOUT MACY'S FINANCIAL CONDITION INFORMATION TO WHICH OTHER MAJOR CREDITORS WILL BE PRIVY AND RESTRAINTS ON THE ROLE FEDERATED TAKES IN DRAFTING CREDITORREORGANIZATION PROPOSALS THE TRADING OF BANKRUPTCY CREDITORS' CLAIMS HAS BECOME MORE COMMON IN RECENT YEARS BUT FEW COURTS HAVE RULED ON MATTERS STEMMING FROM SUCH TRANSACTIONS THAT'S BECAUSE THE CLAIMS TYPICALLY ARE BOUGHT BY INVESTOR GROUPS RATHER THAN COMPANIES SEEKING TO TAKE OVER COMPETITORS AS FEDERATED IS TRYING TO DO IN ONE OF THE FEW COURT CHALLENGES OVER CREDITOR CLAIMS HOWEVER THE BANKRUPTCY COURT IN PITTSBURGH RULED IN 1990 THAT BECAUSE OF THE MOTIVES OF THE ACQUIRER LIMITS COULD BE PLACED ON ITS ABILITY TO EXERCISE ITS RIGHTS AS A CREDITOR THE PITTSBURGH CASE INVOLVED JAPONICA PARTNERS WHICH BOUGHT UP ENOUGH CLAIMS TO GIVE IT A 50 STAKE IN ALLEGHENY INTERNATIONAL INC WHICH WAS SEEKING TO EMERGE FROM PROCEEDINGS UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE JAPONICA A NEW YORKBASED INVESTORS GROUP WASN'T A COMPETITOR OF THE PITTSBURGHBASED APPLIANCEMAKER NOW KNOWN AS SUNBEAMOSTER CO BUT JUDGE JOSEPH L COSETTI FOUND THAT JAPONICA ACTED IMPROPERLY BECAUSE IT PURCHASED CREDITORS' CLAIMS TO TAKE CONTROL OF ALLEGHENY'S REORGANIZATION REPRIMANDING JAPONICA FOR HAVING ABUSED AND MANIPULATED THE BANKRUPTCY PROCESS JUDGE COSETTI ORDERED JAPONICA TO BUY UP THE REST OF THE COMPANY'S STOCK AND WARRANTS OR HAVE ITS 50 STAKE PUT IN A NONVOTING TRUST JUDGE COSETTI'S DECISION IS CITED BY BANKRUPTCY LAWYERS AS AN EXAMPLE OF THE POWER BANKRUPTCYCOURT JUDGES HAVE TO ENSURE THAT THE PROCEEDINGS BEFORE THEM ARE FAIR TO ALL CREDITORS BUT THE DECISION WAS NEVER TESTED ON APPEAL BECAUSE ALLEGHENY'S BOARD EVENTUALLY AGREED TO THE JAPONICA TAKEOVER WHICH WAS SUPPORTED BY CREDITORS AND SHAREHOLDERS JAPONICA FACED THE SAME CONCERN THAT SOME LAWYERS SAID FEDERATED IS LIKELY TO ENCOUNTER THAT THE COMPANY WILL PUT ITS OWN INTERESTS AHEAD OF THOSE OF THE OTHER CREDITORS LAWYERS FOR FEDERATED AND MACY DECLINED TO COMMENT ON ANY MATTERS RELATED TO THE BANKRUPTCYCOURT PROCEEDINGS ROBERT MILLER A LAWYER AT BERLACK ISRAELS & LIBERMAN IN NEW YORK WHO REPRESENTS MACY BONDHOLDERS SAID THERE ARE CERTAIN CONSIDERATIONS OBVIOUSLY BECAUSE FEDERATED IS A COMPETITOR AND THERE ARE ANTITRUST ISSUES AS WELL BECAUSE FEDERATED IS A MAJOR MACY COMPETITOR AND CREDITOR PEOPLE WILL BE QUESTIONING ITS MOTIVES IN THE BANKRUPTCY PROCEEDINGS IS WHAT THEY ARE DOING IN THE BEST INTEREST OF FEDERATED OR IN THE BEST INTERESTS OF MACY CREDITORS' SAID HOWARD SEIFE A BANKRUPTCY LAWYER WITH WINSTON & STRAWN IN NEW YORK THOSE QUESTIONS WILL BE DECIDED BY BANKRUPTCY COURT JUDGE BURTON LIFLAND WHO IS PRESIDING OVER THE MACY CASE IN MANHATTAN EVEN AFTER A REORGANIZATION PLAN IS PRESENTED BY MACY OR ITS CREDITORS IT WILL UP TO THE JUDGE RATHER THAN CREDITORS OR THE COMPANY TO DECIDE WHETHER ANY COMPETING PROPOSALS WOULD BE FAIRER TO THE COMPANY'S CREDITORS UNDER BANKRUPTCY LAW'S EXCLUSIVITY PERIOD MACY CURRENTLY IS THE ONLY PARTY THAT CAN PROPOSE A REORGANIZATION PLAN THAT PERIOD ENDS MARCH 15 BUT CAN BE EXTENDED BY THE BANKRUPTCY COURT GIVEN THE BROAD POWERS THAT FEDERAL LAW GRANTS BANKRUPTCY JUDGES TO ACHIEVE EQUITABLE RESULTS JUDGE LIFLAND ALSO WILL BE IN A POSITION TO CONSIDER THE POSSIBLE ANTICOMPETITIVE CONCERNS RAISED BY THE MERGER OF TWO MAJOR DEPARTMENTSTORE CHAINS JOEL CHEVITZ CHAIRMAN OF THE ANTITRUST GROUP AT KATTEN MUCHIN & ZAVIS IN CHICAGO SAID THE BANKRUPTCY COURT WOULD BE EXPECTED TO REVIEW WHETHER THERE IS ANOTHER BUYER THAT COULD BE JUST AS EFFECTIVE IN HELPING THE COMPANY OUT OF BANKRUPTCY COURT BUT THAT ISN'T A COMPETITOR YESTERDAY US SENATOR HOWARD METZENBAUM D OHIO CHAIRMAN OF THE SENATE JUDICIARY COMMITTEE'S ANTITRUST SUBCOMMITTEE ISSUED A STATEMENT OBJECTING TO FEDERATED'S PROPOSED MERGER SAYING IT WOULD HURT CONSUMERS KEVIN J ARQUIT FORMERLY DIRECTOR OF THE FEDERAL TRADE COMMISSION'S BUREAU OF COMPETITION AND NOW AN ATTORNEY AT ROGERS & WELLS IN NEW YORK DISAGREED HE SAID MERGERS OF DEPARTMENTSTORE CHAINS TYPICALLY DON'T RAISE ANTITRUST PROBLEMS BECAUSE OTHER RETAILERS ALSO COMPETE IN THE MARKET THUS KEEPING PRICES DOWN A FEDERAL APPEALS COURT HAS MADE IT A BIT TOUGHER FOR COMPANIES TO ALTER EMPLOYEE BENEFITS A THREEJUDGE PANEL IN PHILADELPHIA SAID THAT COMPANIES' BENEFIT PLANS CAN'T RELY ON BOILERPLATE LANGUAGE THAT THE COMPANY RESERVES THE RIGHT AT ANY TIME TO MODIFY OR AMEND BENEFITS INSTEAD THE EMPLOYEEBENEFITS PLANS MUST INCLUDE THE ACTUAL PROCEDURES THAT WILL BE USED TO AMEND THE DOCUMENTS THE COURT SAID WITHOUT MORE SPECIFIC LANGUAGE ANY ALTERATIONS ARE VOID THE COURT SAID THE RULING APPARENTLY THE FIRST AT THE APPELLATE LEVEL TO ADDRESS THE ISSUE SQUARELY UPHELD A JUDGMENT OF MORE THAN 2 MILLION TO CERTAIN RETIREES OF CURTISSWRIGHT CORP WHO LOST MEDICAL BENEFITS THE COMPANY'S PLAN CONTAINED ONLY THE STANDARD LANGUAGE ABOUT RESERVING A RIGHT TO MAKE AMENDMENTS THERE IS SOMETHING AT STAKE HERE FAR MORE FUNDAMENTAL THAN A FAILURE TO COMPLY WITH THE FEDERAL BENEFITS LAW'S PROCEDURAL REQUIREMENTS THE COURT SAID EMPLOYEES DESERVE TO KNOW THAT THEIR BENEFITS WILL STAY THE SAME UNLESS SPECIFIC PROCEDURES ARE FOLLOWED THE COURT SAID MICHAEL K KAM AN EMPLOYEEBENEFITS ATTORNEY AT THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES WHICH WASN'T INVOLVED IN THE CASE CALLED THE RULING CURIOUS BECAUSE COURTS GENERALLY ARE GENEROUS TO EMPLOYERS IN SUCH CASES EMPLOYERS CAN EASILY FIX THEIR PLANS TO COMPLY WITH THE RULING AND SHOULD DO SO HE SAID THOMAS M KENNEDY AN EAST RUTHERFORD NJ ATTORNEY FOR THE RETIREES PREDICTED A SPATE OF LAWSUITS OVER JUST HOW SPECIFIC PLANS MUST BE THERE ARE MANY PEOPLE WHO HAVE BEEN DENIED BENEFITS BY A STRICT READING OF THE LANGUAGE IN THE BENEFITS LAW BUT NOW IT CUTS BOTH WAYS HE SAID IN A STATEMENT CURTISSWRIGHT LYNDHURST NJ SAID IT IS CONSIDERING AVENUES OF APPEAL 9401040092 940104 BUSINESS BRIEF NORTH COAST ENERGY DRILLING PROGRAM TO BEGIN ON 26 DEVELOPMENT WELLS NORTH COAST ENERGY INC SAID IT FORMED ITS THIRD INVESTORFINANCED DRILLING PROGRAM FOR CALENDAR YEAR 1993 ON DEC 30 THE COMPANY'S APPALACHIAN PRIVATE DRILLING PROGRAM WILL DRILL 26 DEVELOPMENT WELLS GARRY REGAN NORTH COAST ENERGY'S PRESIDENT SAID THE NEW PROGRAM BRINGS TO 67 THE NUMBER OF WELLS FUNDED IN 1993 COMPARED WITH 46 IN 1992 NATIONWIDE DEMAND FOR NATURAL GAS CONTINUES TO GROW AND WE BELIEVE THE OWNERSHIP OF LOWCOST LONGLIVED RESERVES ARE THE BASIS FOR A POSITIVE FUTURE FOR THE COMPANY AND OUR PARTNERS SAID MR REGAN NORTH COAST ENERGY IS AN INDEPENDENT OIL AND GAS EXPLORATION COMPANY BASED IN CLEVELAND WITH OFFICES IN YOUNGSTOWN AND WARREN OHIO AND COLORADO SPRINGS COLO 9401040091 940104 MACY IS COOL TO OVERTURE FROM FEDERATED NEW YORK RETAILER PLANS TO FOLLOW ITS OWN PATH FOR LEAVING CHAPTER 11 BY JEFFREY A TRACHTENBERG AND LAURA JERESKI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK IN A SIGN THAT RH MACY & CO MAY GO TO GREAT LENGTHS TO STAY INDEPENDENT THE RETAIL GIANT REACTED COOLLY TO FEDERATED DEPARTMENT STORES INC'S PROPOSAL FOR A MERGER THAT WOULD CREATE THE COUNTRY'S LARGEST DEPARTMENTSTORE EMPIRE IT WOULD BE PREMATURE TO CONSIDER ANY SPECIFIC PROPOSAL SAID MYRON ULLMAN III MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AFTER MEETING FOR AN HOUR YESTERDAY WITH ALLEN QUESTROM FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE WE DON'T EXPECT ANYTHING TO INTERFERE WITH THE WORK WE ARE DOING ON OUR PLAN OF REORGANIZATION MEANWHILE KEY CREDITORS HAVE BEEN APPROACHING SEVERAL POTENTIAL SUITORS IN HOPES OF SPEEDING MACY'S EMERGENCE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS AMONG THOSE SAID TO BE INTERESTED IS DILLARD DEPARTMENT STORES INC OF LITTLE ROCK ARK IN THE PAST TWO YEARS DILLARD PRESIDENT WILLIAM DILLARD II HAS HAD SEVERAL DISCUSSIONS WITH MR ULLMAN ABOUT PURCHASING THE NEW YORK RETAILER IN EACH INSTANCE MR ULLMAN STRONGLY DISCOURAGED MR DILLARD'S INTEREST ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION DILLARD DIDN'T RETURN CALLS SEEKING COMMENT MACY'S BONDS AND FEDERATED'S STOCK BOTH ROSE ON NEWS OF FEDERATED'S INTEREST IN MERGING WITH MACY MACY'S CREDITORS WERE CHEERED THAT FEDERATED'S INVESTMENT MAY PROMPT THE MACY MANAGEMENT TEAM TO MOVE MORE QUICKLY TO BRING THE COMPANY OUT OF CHAPTER 11 BANKRUPTCYCOURT PROTECTION AT THE MEETING YESTERDAY AT MACY'S FLAGSHIP STORE IN NEW YORK'S HERALD SQUARE MR ULLMAN AGREED TO BRING MR QUESTROM'S PROPOSAL TO EXPLORE A MERGER OF THE TWO COMPANIES TO MACY'S BOARD BUT HE EMPHASIZED HIS COMMITMENT TO DEVELOPING MACY'S OWN PLAN OF REORGANIZATION WE'RE DOING A SOLID JOB ONE THAT WE BELIEVE WILL BE SUCCESSFUL MR ULLMAN SAID IN AN INTERVIEW MR QUESTROM HOWEVER WASN'T DISCOURAGED BY MR ULLMAN'S RESERVATION IF WE CAN GET COOPERATION FROM HIM AS WELL AS VARIOUS CREDITOR GROUPS WE MAY BE ABLE TO GET MACY OUT OF BANKRUPTCY MORE QUICKLY WHILE PROVIDING LONGTERM BENEFITS FOR THE COMPANY HE SAID MR QUESTROM DIDN'T RULE OUT A HOSTILE BID BUT SAID THAT FEDERATED WOULD RETHINK ITS POSITION IF THE PRICE BECAME TOO HIGH OR IF THE PROCESS BECAME UNWIELDY ON SUNDAY FEDERATED SAID IT HAD PURCHASED HALF OF PRUDENTIAL INSURANCE CO OF AMERICA'S CLAIM IN MACY'S CHAPTER 11 BANRKUPTCYCOURT REORGANIZATION FOR 4493 MILLION WITH 1093 MILLION PAID IN CASH NOW AND THE BALANCE TO BE PAID LATER FEDERATED WHICH ALSO ACQUIRED AN OPTION TO BUY THE OTHER HALF OF PRUDENTIAL'S CLAIM SAID IT ACQUIRED THE CLAIM IN HOPES OF MERGING FEDERATED AND MACY INTO A DEPARTMENTSTORE GIANT WITH AN ESTIMATED 138 BILLION IN ANNUAL SALES THE EMERGENCE OF FEDERATED AS A MACY SUITOR SUGGESTS THAT MACY'S CREDITORS MAY RECEIVE A HIGHER PAYOUT THAN EXPECTED IT ALSO OFFERS THE TANTALIZING POSSIBILITY THAT MACY MAY EMERGE FROM BANKRUPTCYLAW PROTECTION THIS YEAR INSTEAD OF IN 1996 AS SOME RETAIL OBSERVERS HAD EXPECTED FEDERATED HAS DECLINED TO PROVIDE DETAILS OF HOW IT WOULD GAIN CONTROL OF MACY BUT A FEDERATED SPOKESWOMAN SAID THAT AT SOME POINT MACY CREDITORS COULD BE OFFERED STOCK IN A COMBINED COMPANY AT THE VERY LEAST ANALYSTS SAID FEDERATED'S INVESTMENT IN MACY'S SENIOR SECURED DEBT SUGGESTS THAT THE BELEAGUERED RETAILER IS STILL A VIABLE CONSUMER FRANCHISE THIS IS A GREAT SITUATION FOR US SAID PETER SOLOMON AN ADVISER TO MACY'S UNSECURED TRADE CREDITORS WE MAY WELL END UP WITH COMPETING PLANS AND AS RESULT GET A GREATER RETURN MACY'S BONDS TRADED UP SHARPLY ON THE NEWS OF FEDERATED'S INVESTMENT THE 14 1/2 BONDS DUE IN 1998 ENDED THE DAY AT 495 CENTS ON THE DOLLAR UP 85 POINTS THAT'S A GAIN OF 85 FOR EVERY 1000 FACE AMOUNT OF BONDS AND THE HIGHEST PRICE IN MONTHS THE 14 1/2 BONDS DUE IN 2001 CLOSED AT 24 CENTS ON THE DOLLAR UP SIX POINTS AND THE ZEROCOUPON BONDS DUE IN 2001 ROSE 1 1/2 POINTS TO EIGHT CENTS ON THE DOLLAR FEDERATED'S STOCK CLIMBED 2 OR 96 TO 2275 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING OTHER OUTSIDERS ARE ALSO EXPRESSING INTEREST IN MACY ON THURSDAY DILLARD REPRESENTATIVES ARE EXPECTED TO MEET WITH DANIEL HARMETZ WHO RUNS FIDELITY INVESTMENTS' CAPITAL AND INCOME FUND FIDELITY A MUTUALFUND COMPANY BASED IN BOSTON IS NOW MACY'S LARGEST CREDITOR AND HOLDS 490 MILLION OF ITS BANK DEBT FIDELITY HAS BEEN AGITATING FOR MACY TO EMERGE MORE QUICKLY FROM BANKRUPTCY COURT AND IN RECENT MONTHS IT HAS COURTED OUTSIDE SUITORS TO MOUNT A BID FOR THE RETAILER ACCORDING TO THE PEOPLE FAMILIAR WITH THE SITUATION FEDERATED WAS AMONG THOSE FIDELITY APPROACHED THE TALKS BETWEEN FIDELITY AND DILLARD ARE EXPECTED TO FOCUS ON THE POSSIBILITY OF A JOINT BID FOR MACY ACCORDING TO THE PEOPLE FAMILIAR WITH THE SITUATION MR HARMETZ DECLINED TO COMMENT AS A RESULT OF FEDERATED'S INVESTMENT IN MACY'S DEBT STANDARD & POOR'S CORP PLACED FEDERATED'S SENIOR DEBT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE RATING AGENCY SAID ITS ACTION AFFECTING ABOUT 300 MILLION OF DEBT REFLECTS CONCERNS THAT FEDERATED MAY BECOME OVERBURDENED WITH DEBT IF IT ACQUIRES MACY FEDERATED IS ALREADY HIGHLY LEVERAGED SAID JANET MANGANO AN ANALYST AT BURNHAM SECURITIES INC DEPENDING ON THE FINAL PURCHASE PRICE THIS COULD BE MORE THAN THEY CAN CHEW HOWEVER I DON'T EXPECT THEM TO MAKE AN IRRATIONAL BID MS MANGANO ESTIMATED FEDERATED WILL GENERATE 481 MILLION IN EARNINGS BEFORE INTEREST AND TAXES IN THE FISCAL YEAR ENDED JAN 31 1994 WHILE PAYING OUT 160 MILLION IN INTEREST EXPENSE BY COMPARISON SHE PROJECTS THAT MAY DEPARTMENT STORES CO BASED IN ST LOUIS WILL GENERATE 14 BILLION IN EARNINGS BEFORE INTEREST AND TAXES BUT WILL PAY OUT ONLY 245 MILLION IN INTEREST EXPENSE THIS FISCAL YEAR FEDERATED SOUGHT TO ALLAY SUCH FEARS YESTERDAY DURING AN HOURLONG CONFERENCE CALL WITH ANALYSTS AND SHAREHOLDERS KAREN HOGUET THE RETAILER'S TREASURER EMPHASIZED THAT A MERGER WOULD NOT BE DILUTIVE TO FEDERATED'S STOCK IN THE LONG RUN WHAT SHE DIDN'T EXPLAIN WAS WHY MIKE ULLMAN WOULD AGREE TO SUCH A MERGER SAID HERBERT LUST MANAGING DIRECTOR AT BEAR STEARNS & CO ANALYSTS ESTIMATE THAT IT WOULD COST 3 BILLION TO 35 BILLION TO BUY ALL OF MACY THE BUYER WOULD HAVE TO GAIN APPROVAL FROM THE COMPANY'S CREDITORS AND US BANKRUPTCY COURT JUDGE BURTON LIFLAND IN HOPES OF DOING THAT FEDERATED IS PLANNING A SERIES OF MEETINGS WITH CREDITOR GROUPS TO TRY TO REACH A CONSENSUS ON A REORGANIZATION PLAN JUDGE LIFLAND WOULD HAVE TO APPROVE ANY SUCH PLAN FOR NOW MACY'S MANAGEMENT HAS EXCLUSIVE RIGHTS TO PREPARE A REORGANIZATION PLAN THE EXCLUSIVITY PERIOD ENDS MARCH 15 AND MACY WHICH HAS OPERATED UNDER CHAPTER 11 BANKRUPTCY PROTECTION SINCE JAN 27 1992 IS EXPECTED TO REQUEST AN EXTENSION SANDRA MAYERSON A BANKRUPTCY SPECIALIST AT LAW FIRM MCDERMOTT WILL & EMERY NOTED THAT BANKRUPTCY LAW PREVENTS OUTSIDERS FROM OFFERING A FORMAL PLAN DURING THE EXCLUSIVITY PERIOD HOWEVER OUTSIDERS CAN ASK THE COURT TO END EXCLUSIVITY THE OTHER OPTION MS MAYERSON SAID IS TO TENDER FOR CREDITOR CLAIMS AGAINST MACY AND GAIN CONTROL THE LACK OF SUPPORT OF MANAGEMENT WOULD MAKE SUCH AN OFFER MORE DIFFICULT SHE ADDED THIS IS A SPECTACULAR DEAL FOR FEDERATED SAID MAX HOLMES HEAD OF HIGHYIELD RESEARCH AT SALOMON BROTHERS FEDERATED PAID 108 CENTS ON THE DOLLAR FOR CLAIMS WORTH AS MUCH AS 122 CENTS INCLUDING INTEREST AND ONLY PUT UP ONEFOURTH OF THE PURCHASE PRICE IN CASH PRUDENTIAL IS FINANCING THE BALANCE OF FEDERATED'S PURCHASE AT TWO PERCENTAGE POINTS ABOVE SHORTTERM FLOATING INTEREST RATES WHILE FEDERATED COLLECTS 12 ON ITS PORTION OF THE DEBT THAT SPREAD GIVES FEDERATED 32 MILLION OR SO A YEAR AS LONG AS THE BANKRUPTCY PROCEEDINGS CONTINUE MOREOVER SHOULD ITS BID FOR MACY PROVE UNSUCCESSFUL FEDERATED WILL RECOVER 100 CENTS ON THE DOLLAR FOR CLAIMS IT PAID ABOUT 86 CENTS TO ACQUIRE FOR MACY BONDHOLDERS HOWEVER FEDERATED'S PRESENCE ISN'T NECESSARILY A PLUS IT'S NOT CLEAR THE BONDHOLDERS WILL BE BIG WINNERS HERE MR HOLMES SAID IT IS CERTAINLY POSSIBLE FOR THE BONDHOLDERS TO GET SQUEEZED OUT IF MACY ANNOUNCES ITS OWN DEAL OR IF FEDERATED AND CREDITORS AGREE TO A PLAN ROBERT MILLER AN ATTORNEY AT BERLACK ISRAELS & LIBERMAN WHO REPRESENTS MACY'S BONDHOLDERS AGREED SAYING THAT IT WAS TOO EARLY TO DETERMINE WHETHER FEDERATED'S PRESENCE WOULD BE POSITIVE OR NEGATIVE 9401040090 940104 LETTERS TO THE EDITOR WHY INSULT PROZAC WHILE YOUR DEC 23 EDITORIAL WHY DISCOURAGE RELIGION IS TIMELY AND RELEVANT I AND MANY OTHERS TAKE OFFENSE AT THE DERISIVE COMMENTS ABOUT THOSE WHO TAKE ANTIDEPRESSIVE MEDICATIONS IE PROZAC YOUR IMPLICATION IS THAT PEOPLE WHO BY MEDICAL NECESSITY TAKE A SYNTHETIC SEROTONIN SUBSTITUTE ARE SOMEHOW SEEKING A HIGH AKIN TO MARIJUANA OR COCAINE USERS OR AT THE VERY LEAST ARE SUBSTITUTING THIS DRUG FOR RELIGIOUS FAITH I KNOW TWO VERY DEVOUT FAITHFUL SEROTONINDEFICIENT PEOPLE AND THEY ARE THE VERY KIND OF PEOPLE YOUR EDITORIAL PRAISES THEY ALSO DON'T DESERVE THE FLIP WAY YOU BELITTLE THEIR ATTEMPT TO DEAL WITH THEIR DISEASE THE OVERUSE OR INAPPROPRIATE PRESCRIPTION OF PROZAC IS NO REASON TO INSULT ALL USERS OF THE DRUG AS A CLASS 9401040089 940104 GRAYMATTER MATTER SO MANY SCIENTISTS SO FEW FRESH BRAINS SHORT ON DEPOSITS BRAIN BANKS WAGE CONSTANT CAMPAIGN TO ENTICE NEW DONORS BY ERIC MORGENTHALER STAFF REPORTER OF THE WALL STREET JOURNAL MIAMI ON A TABLE IN DEBORAH MASH'S OFFICE IS A LONG PURPLE VOLUME TITLED INTERPRETATIVE ATLAS OF THE MONKEY'S BRAIN IT IS THE FIRST CLUE IF ONE IS NEEDED THAT THE BANK SHE HEADS ISN'T A CONVENTIONAL ONE SHE BEGINS THE TOUR YOU CAN EQUATE THIS TO A SAFEDEPOSIT BOX SHE SAYS AS SHE LEADS A VISITOR INTO A LARGE ROOM OPENS ONE OF TWO UPRIGHT FREEZERS AND SLIDES OUT A GRAY DRAWER SHE REMOVES A SEALED PLASTIC SACK CONTAINING THE CURRENCY OF HER INSTITUTION IT IS SLICED AND QUICKFROZEN TO LOCK IN FRESHNESS SHE EXPLAINS ANOTHER DAY AT THE BRAIN BANK DR MASH IS AN ASSOCIATE PROFESSOR AT THE UNIVERSITY OF MIAMI SCHOOL OF MEDICINE AND DIRECTOR OF ITS BRAIN ENDOWMENT BANK IT IS ONE OF THREE MAJOR BRAIN BANKS IN THE US THE OTHERS ARE IN LOS ANGELES AND BELMONT MASS AND DOZENS OF SMALLER ONES THE BANKS COLLECT STORE AND DISTRIBUTE BRAIN TISSUE FROM HUMANS WHO HAVE DIED NOT MONKEYS FOR RESEARCH PURPOSES BASICALLY IT'S JUST WHAT IT SOUNDS LIKE IT'S A BANK SAYS DR MASH WHAT WE'RE PRESERVING IN THE BANK AND HOPE TO GET DIVIDENDS ON IN THE FUTURE ARE FROZEN SPECIMENS OF HUMAN BRAIN TISSUE BRAIN BANKING HAS SURGED IN RECENT YEARS THANKS TO AN INCREASE IN NEUROLOGICAL RESEARCH INTO EVERYTHING FROM ALZHEIMER'S AND PARKINSON'S DISEASES TO SCHIZOPHRENIA AND ALCOHOLISM BUT SUPPLY HASN'T KEPT PACE WITH DEMAND BRAIN BANKS NEED MORE DEPOSITORS THAT EXPLAINS THE RESEARCH TAKES BRAINS BUMPER STICKERS THAT BOSTONAREA DRIVERS MIGHT SPOT WITH THE NUMBER 1800BRAINBANK THE STICKERS COME FROM THE BRAIN TISSUE RESOURCE CENTER AT MCLEAN HOSPITAL IN BELMONT WHICH IS PART OF HARVARD MEDICAL SCHOOL DIAL THE NUMBER AND OPEN AN ACCOUNT IT ALSO IS WHY A DENVERAREA BRAIN BANK HAS BEEN ABLE TO ENLIST COLORADO'S GOVERNOR PLUS THE CIVIL AIR PATROL IN ITS RUSH TO GET BRAINS WITHIN SIX HOURS OF DEATH AS BRAIN CHEMICALS DETERIORATE RAPIDLY THE BANK IS AT THE ROCKY MOUNTAIN MULTIPLE SCLEROSIS CENTER IN ENGLEWOOD COLO IF A DONOR DIES OUTSIDE THE DENVER AREA THE AIR PATROL PROVIDES A PLANE AND PILOT AND THE GOVERNOR'S OFFICE THE GASOLINE FOR A TECHNICIAN TO RETRIEVE THE BRAIN IT IS WHY WALLACE TOURTELLOTTE DIRECTOR OF THE NATIONAL NEUROLOGICAL RESEARCH SPECIMEN BANK A BIG FACILITY IN LOS ANGELES IS AT WAR WITH THE COUNTY CORONER'S OFFICE WHICH WON'T GIVE HIM ACCESS TO THE BRAINS OF ITS OVERTHETRANSOM CORPSES THE THING THAT PEEVES US MOST SAYS DR TOURTELLOTTE WHOSE BANK HAS TISSUE FROM MORE THAN 2000 BRAINS AND ADMITS ABOUT 250 BRAINS A YEAR IS THEY WILL LET AN ORGANIZATION COME IN AND TAKE THE EYEBALLS AND TAKE THE SKIN AND TAKE BONE AND JOINTS BUT THEY WON'T LET US COME IN AND TAKE THE BRAINS FOR RESEARCH NOW ISN'T THAT SOMETHING TO REALLY GET UPTIGHT ABOUT NOT REALLY SAYS JOSEPH MUTO WHO HEADS THE FORENSICSCIENCE LABORATORIES DIVISION OF THE CORONER'S OFFICE IT'S APPLES AND ORANGES HE SAYS TO COMPARE ORGANS DESTINED FOR LIVING HUMANS TO ORGANS FOR RESEARCH HE ALSO CITES A VERY REAL LOGISTICAL PROBLEM WITH BRAIN RESEARCHERS GIVEN THE CORONER'S LIMITED BUDGET AND HEAVY CASELOAD THEY NEED BRAINS WITHIN 12 HOURS OF DEATH HE SAYS WE DON'T EVEN GET OUR AUTOPSIES RUNNING UNTIL ABOUT 72 HOURS AFTER DEATH FINALLY THE NEED FOR BRAINS IS WHY 82YEAROLD RUTH ARCHIBALD IS RUNNING A BRAIN DRIVE AMONG HER NEIGHBORS AT THE COVENANT VILLAGE RETIREMENT HOME IN PLANTATION FLA MRS ARCHIBALD AND HER HUSBAND ELWYN WHO DIED LAST OCTOBER GOT INTERESTED IN MIAMI'S BRAIN BANK ABOUT THREE YEARS AGO AFTER SHE WAS DIAGNOSED WITH PARKINSON'S DISEASE THEY SIGNED UP THEMSELVES THEN STARTED SIGNING UP THEIR FRIENDS WE JUST GOT THE 55TH DONOR A FEW WEEKS AGO MRS ARCHIBALD SAYS SHE IS 101 AND VERY VERY CLEAR IN HER MIND WE THOUGHT IT WOULD BE NICE TO GET HER BRAIN YOU KNOW YOU DON'T GET MANY PEOPLE THAT OLD TO GIVE THEIR BRAINS BRAIN BANKS ARE NONPROFIT ORGANIZATIONS OFTEN FUNDED WITH BOTH GOVERNMENT AND PRIVATE GRANTS THEY NORMALLY DON'T CHARGE FOR TISSUE THE THREE BIG ONES ARE FULLSERVICE INSTITUTIONS COLLECTING TISSUE FROM A WIDE SPECTRUM OF DISEASES AND CONDITIONS WHILE THE SMALLER ONES USUALLY SPECIALIZE THE FACT THAT BRAIN BANKS ARE GEARED TO RESEARCH OFTEN COMPLICATES THEIR RECRUITMENT EFFORTS FOR THE PAYOFF CAN SEEM LESS IMMEDIATE THAN FROM SAY DONATING LIFESAVING ORGANS TO ANOTHER PERSON MOST PEOPLE WHO'VE CONTRIBUTED ARE VISIONARIES SAYS DR MASH OF THE MIAMI BANK WHICH HAS COLLECTED NEARLY 400 BRAINS SINCE IT OPENED IN 1986 AND HAS MORE THAN 500 PROMISED TO IT THEY'RE GIVING THIS FOR THE NEXT GENERATION WHAT'S MORE TRADITIONAL ORGAN DONORS OFTEN CAN'T BE USED AS BRAIN DONORS THE COLLECTING OF SUCH ORGANS AS THE HEART OR LUNGS BEGINS WHEN THE PATIENT IS STILL BREATHING BUT BRAIN DEAD BUT BRAIN DEAD IS TOO LATE FOR BRAIN RESEARCHERS NONETHELESS BRAINS ARE ESSENTIAL FOR MEDICAL SCIENCE THERE HAVE BEEN SPECTACULAR ADVANCES IN THE LAST 10 YEARS IN UNDERSTANDING ALZHEIMER'S DISEASE AND THE MAJOR MILESTONES HAVE ALL COME FROM STUDIES OF POSTMORTEM HUMAN BRAIN TISSUE SAYS JOHN Q TROJANOWSKI A NEUROPATHOLOGIST AND HEAD OF THE ALZHEIMER'S DISEASE CENTER AT THE UNIVERSITY OF PENNSYLVANIA SCHOOL OF MEDICINE ONE OF 28 SUCH CENTERS FUNDED BY THE NATIONAL INSTITUTE ON AGING THE NEEDS OF BRAIN BANKS VARY BUT RESEARCHERS CITE A SEVERE SHORTAGE OF TISSUE FROM SCHIZOPHRENICS AND MANICDEPRESSIVES CONDITIONS THAT ARE FRONTIERS OF NEUROLOGICAL RESEARCH AND THERE IS ALWAYS A DEMAND FOR NORMAL BRAINS WHICH AMONG OTHER THINGS ARE NEEDED TO ESTABLISH THE DIFFERENCES BETWEEN HEALTHY AND DISEASED TISSUE MOST HEALTHY PEOPLE USUALLY DON'T THINK ABOUT DONATING THEIR BRAINS FOR RESEARCH SAYS EDWARD BIRD A NEUROPATHOLOGIST AND DIRECTOR OF THE MCLEAN BANK IN MASSACHUSETTS THE DONATION PROCESS IS SIMPLE A PROSPECTIVE DONOR FILLS OUT A CARD WILLING HIS OR HER BRAIN TO A BANK SOME BANKS GATHER INFORMATION ON DONORS FOR THE REST OF THEIR LIVES SO THEY HAVE AS COMPLETE A PROFILE AS POSSIBLE FOR RESEARCHERS THE MIAMI BANK FOR INSTANCE IS DOING SO FOR A STUDY ON AGING IN ADDITION TO PEOPLE WHO SIGN UP IN ADVANCE OR WHOSE FAMILIES OFFER THE BRAINS BANKS SOMETIMES GET REFERRALS FROM CORONERS WHEN A PERSON DIES THE BANK SPRINGS INTO ACTION BECAUSE WITH BRAINS AS DR MASH SAYS THE EQUIPMENT GOES DOWN VERY QUICKLY A PROFESSIONAL REMOVES THE BRAIN IN A SIMPLE PROCEDURE CHILLS IT AND RUSHES IT TO THE BANK THERE IT IS QUICKFROZEN OR PRESERVED IN OTHER FASHIONS DEPENDING ON THE SORT OF RESEARCH IT'S NEEDED FOR USUALLY ONE BRAIN CAN SUPPLY A NUMBER OF RESEARCHERS ALL OVER THE US DR MASH SAYS YET IT TAKES BRAINS TO GET BRAINS PUBLIC EDUCATION OR MARKETING IS ONE OF THE MAIN JOBS OF BRAIN BANKS THE BRAIN BANK HERE HAS AMONG OTHER THINGS A NEWSLETTER BRAIN TRUST AND AN 800 NUMBER 1800UM BRAIN WHAT'S MORE DR MASH SPEAKS WIDELY TO CIVIC GROUPS AND MEDIA IT'S A CONSTANT CAMPAIGN SHE SAYS WE GO OUT AND ASK YOU TO PLEASE DONATE YOUR BRAINS 9401040088 940104 REGULATORY CHOKEHOLD NEWLY VULNERABLE TO SUPERFUND'S CLAWS BY RICHARD L STROUP IF YOU THINK THE SUPERFUND PROGRAM IS OUT OF CONTROL NOW WATCH WHAT HAPPENS THIS YEAR THE ENVIRONMENTAL PROTECTION AGENCY THE PROGRAM'S ADMINISTRATOR IS TRYING TO REDUCE SUPERFUND LITIGATION BY CLARIFYING THE RULES UNDER WHICH BUSINESSES INDIVIDUALS PUBLIC SCHOOL SYSTEMS AND OTHERS PAY BACK THE COSTS OF EPADESIGNATED CLEANUPS THE SUPERFUND LAW ALREADY INVITES REVIEW A STUDY BY THE INSTITUTE FOR CIVIL JUSTICE FOUND THAT IN THE LATE 1980S EPA SPENT MORE THAN 7 ON OVERHEAD FOR EVERY DOLLAR IT SPENT ON CLEANUP BETWEEN 50 AND 70 OF SUPERFUND SPENDING IS INEFFICIENT AND UNDERMINES THE ENVIRONMENTAL MISSION OF THE PROGRAM ACCORDING TO A 1989 STUDY PERFORMED BY THE OFFICE OF TECHNOLOGY ASSESSMENT A GOVERNMENT AGENCY YET THE CHANGES CONTEMPLATED WOULD WORSEN THIS SITUATION THE SUPERFUND LAW ALLOWS EPA TO HIRE AND PAY CONTRACTORS TO CLEAN UP A SITE WITH SUPERFUND MONEY AND LATER SEEK REIMBURSEMENT TO RECOVER ITS COSTS FROM THE PARTIES IT DEEMS RESPONSIBLE THE PROPOSED RULE CHANGE WOULD SEVERELY LIMIT THE ABILITY OF THOSE WHO PAY TO REVIEW THE CHARGES AND QUESTION THEM THE IDEA IS TO STREAMLINE THE RECOVERY PROCESS AND REDUCE LITIGATION BUT QUESTIONING CHARGES IN AND OUT OF COURT IS ONE OF THE ONLY REMAINING SAFEGUARDS THAT PREVENTS THE EPA FROM BILLING UNNECESSARY AND UNREASONABLE CHARGES BECAUSE OF NEW ELECTRONIC BOOKKEEPING SUPERFUND TARGETS COULD NO LONGER SEE THE INVOICES FOR PAYMENTS RELATING TO THEIR OWN CASES THE RULE WOULD ALSO DRAMATICALLY INCREASE THE RATE THAT RESPONSIBLE PARTIES PAY NOT FOR CLEANUP COSTS BUT FOR THE AGENCY'S OVERHEAD THE AGENCY COULD COLLECT THESE COSTS RETROACTIVELY TO 1983 ALONG WITH FUTURE COSTS POTENTIALLY THEREFORE THE ENTIRE SUPERFUND PROGRAM APART FROM FEDERAL SITES COULD JUMP THE TRACK AND GO OFFBUDGET ESCAPING THE CONSTRAINTS OF THE CONGRESSIONAL BUDGET PROCESS GET THIS IF WORK WAS DONE ON A SUPERFUND CLEANUP IN 1988 THE EPA WOULD BE REIMBURSED BETWEEN 269 AND 376 OF OVERHEAD FOR EACH HOUR OF WORK DONE BY EACH OF ITS EMPLOYEES WORKING ON THAT CLEANUP THIS RATE BEYOND A PERSON'S HOURLY RATE WOULD APPLY WHETHER THE WORK WAS DONE BY A SENIOR ENGINEER OR A JUNIOR SECRETARY THAT IS HOW THE NEW RULE WOULD WORK EPA WANTS THIS RULE BECAUSE RIGHT NOW THE PROGRAM IS BOGGED DOWN IN LITIGATION AS BUSINESSES AND INDIVIDUALS TRY IN AND OUT OF COURT TO AVOID PAYING EPA'S PUNITIVE COSTS THE CHANGE MIGHT MINIMIZE SUCH LITIGATION BUT SO WOULD ABOLISHING LEGAL DUE PROCESS EMBARRASSING QUESTIONS TO EPA ABOUT OUTRAGEOUS LOST OR DUPLICATE BILLS WOULD SELDOM BE ASKED BECAUSE DETAILED EXAMINATION BY PARTIES OR COURTS WOULD BE NEARLY IMPOSSIBLE WITHOUT ACCESS TO INVOICES COMMENTING ON THE PROPOSED RULE THE AMERICAN MINING CONGRESS HAS STATED THAT GRANTING THIS AUTHORITY IS TANTAMOUNT TO GIVING A BLANK CHECK TO IMELDA MARCOS BEFORE SHE SHOPS IN A FIFTH AVENUE SHOE STORE PUBLIC COMMENTS ON THE RULE BROUGHT TO LIGHT EGREGIOUS EXPENDITURES CLAIMED IN COSTRECOVERY ACTIONS ONE COMMENT INCLUDED A DEPOSITION FROM A 1990 FEDERAL COURT CASE WHERE COSTS WERE BEING SOUGHT FOR MISCELLANEOUS EXPENSES FROM DU PONT CO AND OTHERS AT A SUPERFUND SITE AMONG THESE EXPENSES WERE PHONE CALLS TO SEVERAL 900 NUMBERS PUBLISHED IN PENTHOUSE MAGAZINE PROMISING FOR EXAMPLE THE FORBIDDEN FANTASIES OF ALEXIS C A SEDUCTIVE NYMPH AND THE INTIMATE SEXUAL PLEASURE OF EMMANUELLE X LESS FLAMBOYANT BUT MORE IMPORTANT ARE THE COMMENTS OF ROBERT ROCK OF THE ACCOUNTING HOUSE PRICE WATERHOUSE HE NOTES THAT IN GENERAL THE INVOICES PAID BY THE EPA LACK EVIDENCE THAT THE EPA REVIEWED OR EVEN SPOTCHECKED THE INVOICE FOR ACCURACY AND APPROPRIATENESS HE CITED DUBIOUS CHARGES FOR TRAVEL TO A SUPERFUND SITE THE TRAVEL WAS CHARGED BUT THERE WAS NO INDICATION THAT ANY TIME WAS SPENT ON THE SITE CUTOFF ERRORS THE EPA INCLUDED COSTS OUTSIDE A SPECIFIED TIME PERIOD AND DUPLICATE CHARGES FROM DIFFERENT AGENCIES FOR THE SAME TYPE OF WORK IN ONE CASE THE EPA CHARGED SAMPLE ANALYSIS COSTS FROM AN UNRELATED SITE RESULTING IN AN OVERCHARGE OF 400000 MR ROCK STATED THESE TYPES OF ERRORS WOULD NOT HAVE BEEN DISCOVERED IF THE EPA'S PROPOSED RULES FOR DOCUMENTATION HAD BEEN IN PLACE AT THE TIME OF OUR REVIEW UNDER THE COST RECOVERY PROCESS EVEN NOW THE EPA CAN RECOVER VIRTUALLY ANY AMOUNT THAT IT SPENDS UNLESS THESE COSTS ARE SUCCESSFULLY CHALLENGED IN COURT AS BEING UNNECESSARY OR UNREASONABLE THE EPA POINTS OUT THAT THERE IS NO STATUTORY DOLLAR LIMIT TO THE RESPONSE ACTIONS THAT IT MAY REQUIRE GOVERNMENT PROFESSIONALS ARE EAGER TO FORCE SMALL INCREMENTS OF RISK REDUCTION BECAUSE THEY HAVE NO INCENTIVE TO CONCERN THEMSELVES WITH COST AT ONE SITE EPA WENT TO COURT AND REQUIRED PARTIES TO SPEND 93 MILLION ADDITIONAL DOLLARS TO CLEAN THE SITE TO A LEVEL WHERE THE DIRT WOULD BE SAFE ENOUGH TO EAT FOR 260 DAYS A YEAR EPA WAS UNSATISFIED WITH CONTAMINATED DIRT THAT EVERYONE CONCEDED WAS SAFE TO EAT FOR 70 DAYS A YEAR AND THE SITE WAS LOCATED IN A SWAMP EPA'S POSITION ON THE PROPOSED RULE IS THAT DEFENDANTS CANNOT AVOID PAYMENT OF UNITED STATES' COSTS ON THE GROUNDS THAT SUCH COSTS ARE UNNECESSARY' OR UNREASONABLE' SO UNDER THE PROPOSED RULE THERE WOULD BE NO RESTRICTION TO WHAT EPA CAN SPEND AND THERE WOULD BE NO ONE TO STOP IT EVEN IF EPA ADMITS THAT ITS BILLS ARE UNNECESSARY AND UNREASONABLE FORGET THE SKY THERE IS NO LIMIT THE RULE IS SET TO BECOME FINAL AS EARLY AS NEXT MONTH IN CONGRESSIONAL HEARINGS A YEAR AND A HALF AGO REP JJ PICKLE D TEXAS SAID THAT IF THE EPA CAN'T MAKE THE SUPERFUND PROGRAM WORK EFFICIENTLY AND EFFECTIVELY TO ELIMINATE THE HEALTH RISKS POSED TO THE PUBLIC WE OUGHT TO SCRAP THE PROGRAM AND START OVER GIVEN THE COSTLY INEFFECTIVENESS OF THE PROGRAM TO DATE PERHAPS THIS IS GOOD ADVICE FOR THE MOMENT MAY ONE SUGGEST AT LEAST SCRAPPING THE PROPOSED RULE AND STARTING OVER MR STROUP IS PROFESSOR OF ECONOMICS AT MONTANA STATE UNIVERSITY BRADLEY K TOWNSEND A FELLOW AT THE POLITICAL ECONOMY RESEARCH CENTER IN BOZEMAN MONT CONTRIBUTED TO THIS ARTICLE AND COAUTHORED A LONGER VERSION OF IT THAT APPEARS IN THE CURRENT ISSUE OF THE CATO INSTITUTE'S MAGAZINE REGULATION 9401040087 940104 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY DECEMBER 22 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9401040086 940104 MOVIES BOX OFFICE 1993 BOTH A RECORD AND A LETDOWN BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD TICKET SALES AT THE NATION'S MOVIE THEATERS LAST YEAR NARROWLY TOPPED THE RECORD SET IN 1989 BUT FEW EXECUTIVES HERE ARE CELEBRATING AFTER A STELLAR SUMMER AND FALL STUDIOS HAD COUNTED ON SHATTERING THE 1989 RECORD IN EARLY DECEMBER BUT THE HOLIDAY SEASON WAS DISASTROUS WITH POORLY RECEIVED MOVIES PUSHING BUSINESS FOR THE SEASON DOWN 17 FROM A YEAR AGO SO THE RECORD WASN'T ACHIEVED UNTIL THE FINAL DAYS OF THE YEAR THE BOXOFFICE GROSS FOR ALL OF 1993 AS TRACKED BY THE HOLLYWOOD REPORTER AN ENTERTAINMENT TRADE DAILY WAS 524 BILLION UP 42 FROM 1989'S 503 BILLION THE NEW RECORD WAS ALSO SET ONLY BECAUSE OF THE RUNAWAY SUCCESS OF ONE MOVIE UNIVERSAL PICTURES' JURASSIC PARK WITH A DOMESTIC TAKE OF 3395 MILLION THE STEVEN SPIELBERG THRILLER TOOK IN MORE THAN THE TOP TWO GROSSING FILMS OF 1992 COMBINED THE BLOCKBUSTER FUELED THE SUMMER'S BOX OFFICE AND EXECUTIVES BELIEVE THAT MANY OTHER FILMS BENEFITED FROM ITS SUCCESS BUT STUDIOS MISFIRED OVER THE HOLIDAYS WITH JUST ONE MOVIE CROSSING THE 100 MILLION MARK MRS DOUBTFIRE THE ROBIN WILLIAMS COMEDY FROM NEWS CORP'S FOX STUDIO AUDIENCES REJECTED SEQUELS INCLUDING SISTER ACT 2 AND WAYNE'S WORLD 2 THAT'S ALSO BAD NEWS BECAUSE STUDIOS ARE PLANNING A SLEW OF SEQUELS THIS YEAR INCLUDING BEVERLY HILLS COP 3 CITY SLICKERS II AND THE MIGHTY DUCKS II EVEN MOVIES WITH BIG STARS LIKE WARNER BROS' A PERFECT WORLD WITH KEVIN COSTNER AND CLINT EASTWOOD FAILED TO EXCITE MOVIEGOERS OVER THE HOLIDAYS THE BATTLE AMONG HOLLYWOOD STUDIOS FOR THE MYTHICAL 1993 MARKETSHARE CROWN HAS LED AT LEAST THREE COMPANIES TO TRY TO SPIN THE NUMBERS TO THEIR ADVANTAGE SOME IN HOLLYWOOD FIND THE DANCE COMICAL BECAUSE MARKET SHARE CAN BE ATTAINED BY RELEASING MORE MOVIES THAN A COMPETITOR AND DOESN'T MEASURE HOW PROFITABLE A FILM IS STILL ACCORDING TO HOLLYWOOD REPORTER ANALYST AD MURPHY WARNER BROS WON THE MARKETSHARE RACE FOR THE THIRD YEAR IN A ROW WITH THE YEAR'S SECOND HIGHEST GROSSING FILM THE FUGITIVE THE TIME WARNER INC UNIT'S MOVIES SOLD ABOUT 911 MILLION OF TICKETS OR 189 OF THE MARKET WALT DISNEY CO FINISHED SECOND WITH 804 MILLION OF TICKETS SOLD FOR A 166 SHARE BUT IN COMPUTING MARKET SHARE MR MURPHY DOESN'T COMBINE THE SEPARATE DISTRIBUTION OUTLETS THAT SOME MOVIE COMPANIES OWN IF DISNEY'S MIRAMAX FILMS UNIT WERE INCLUDED IN ITS TOTAL SHARE FOR EXAMPLE IT WOULD HAVE SOLD MORE THAN 951 MILLION OF TICKETS MEANWHILE SONY CORP OWNS TWO MAJOR DISTRIBUTION COMPANIES COLUMBIA AND TRISTAR AS WELL AS TWO SMALLER ONES SONY PICTURES CLASSICS AND TRIUMPH RELEASING WHEN ADDED TOGETHER SONY'S TOTAL BOXOFFICE SALES OF 903 MILLION PUT IT IN THE SAME BALLPARK AS DISNEY AND WARNER 9401040085 940104 JG SUMMIT PROTESTS ATTEMPT TO TOP BID FOR PHILIPPINE FIRM SPECIAL TO THE WALL STREET JOURNAL MANILA PHILIPPINES JG SUMMIT HOLDINGS CORP HAS FORMALLY FILED A PROTEST WITH THE GOVERNMENT'S ASSET PRIVATIZATION TRUST OVER A CONSORTIUM'S OFFER TO TOP BY 5 ITS BID FOR PHILIPPINE SHIPYARD & ENGINEERING CORP JG SUMMIT WHICH BID 203 BILLION PESOS 752 MILLION IS THE INVESTMENT HOLDING COMPANY OF BUSINESS TYCOON JOHN GOKONGWEI JR IN A LETTER SENT TO THE GOVERNMENT AGENCY YESTERDAY MR GOKONGWEI PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE AGENCY SHOULD DECLARE A FAILURE JAPAN'S KAWASAKI HEAVY INDUSTRIES LTD'S EXERCISE OF A RIGHT TO TOP THE BID THE COMPANY FILED ITS PROTEST FOLLOWING AN ANNOUNCEMENT BY KAWASAKI THAT IT WILL BE FORMING A CONSORTIUM WITH SINGAPORE'S KEPPEL CORP JAPAN'S MITSUI ENGINEERING & SHIPBUILDING CORP AND OTHER LOCAL COMPANIES MR GOKONGWEI ASSERTED THAT UNDER THE APT'S BIDDING RULES THE RIGHT TO TOP THE BID CAN BE EXERCISED ONLY BY KAWASAKI AND/OR PHILYARD HOLDINGS INC A 6040 JOINT VENTURE FIRM OF LOCAL CONCERN MAGSAYSAY SHIPPING CORP AND KAWASAKI HOWEVER HE SAID HE ALSO HAD RESERVATIONS ABOUT THE LEGALITY OF THE RIGHT JG SUMMIT WAS THE WINNER IN THE DEC 2 BIDDING FOR PHILSECO WITH ITS OFFER TOGETHER WITH SINGAPORE'S SEMBAWANG SHIPYARD LTD AND JURONG SHIPYARD LTD SINGAPORE'S KEPPEL AND ITS LOCAL PARTNERS THE SM GROUP OF DEPARTMENT STORE MAGNATE HENRY SY INTERNATIONAL CONTAINER TERMINAL SERVICES INC AND INSULAR LIFE ASSURANCE CO ALSO BID BUT THEIR OFFER WAS 1528 BILLION PESOS BY ALLOWING THE ORIGINAL LOSING BIDDERS TO BAND TOGETHER WITH KAWASAKI WILL DEFINITELY MAKE A MOCKERY OF THE APT'S BIDDING RULES AND ALL OTHER BIDDING RULES AND PROCEDURES UNDER THE LAW MR GOKONGWEI CONTENDED TO COMPLY WITH THE BIDDING RULES PHILYARD HOLDINGS INC SAID IT WOULD ACQUIRE 8767 OF PHILSECO AS A 6040 JOINT VENTURE OF KAWASAKI AND MAGSAYSAY FOLLOWING TRANSFER OF OWNERSHIP OF PHILSECO PHILYARD WOULD FORM A BROADBASED CONSORTIUM SEPARATELY JG SUMMIT HAS RECEIVED A GOVERNMENT CLEARANCE FOR ITS 357 MILLION PETROCHEMICAL PROJECT THE PHILIPPINE BOARD OF INVESTMENTS SAID THE PROJECT WHICH WILL MANUFACTURE RAW MATERIALS FOR PLASTIC PRODUCTION WILL HAVE A COMBINED CAPACITY OF 355000 METRIC TONS 180000 METRIC TONS OF POLYPROPYLENE RESINS AND 175000 METRIC TONS OF POLYETHYLENE RESINS IT WILL BE UNDERTAKEN THROUGH A COMPANY CALLED JG PETROCHEMICAL CORP 9401040084 940104 LETTERS TO THE EDITOR IT'S NOT SO SIMPLE IN AN OTHERWISE COHERENT ARTICLE FED NEEDS AN ANGELL EDITORIAL PAGE DEC 21 LARRY KUDLOW MAKES CERTAIN SIMPLISTIC ASSOCIATIONS FIRST HIS MENTION OF THE 20 MILLION NEW JOBS CREATED DURING THE 1980S IS NOT UNIQUE THE THREE PREVIOUS DECADES WITNESSED AN EQUAL OR GREATER MAGNITUDE OF NEW JOB CREATION DESPITE SUCCESSIVE ADMINISTRATIONS ADHERING TO WHAT HE CALLS KEYNESIAN ISLM ECONOMICS SECOND HIS LINKING OF THE MILD UPSURGE IN GOLD PRICES TO FUTURE INFLATION CAN BE TENUOUS AT BEST MOST ANALYSTS WOULD AGREE THAT SUPPLYSIDE FACTORS PARTICULARLY TURMOIL IN SOUTH AFRICA AND RUSSIA ARE DRIVING THE CURRENT MARKET THIRD ALTHOUGH HE CORRECTLY RECOMMENDS THE REVERSAL OF THE NEW TAX POLICIES DUE TO THEIR ISOLATED CONTRACTIONAL IMPACT ON THE ECONOMY HE FAILS TO EXPLAIN THE NEARLY 150 BASIS POINT DROP IN LONGTERM RATES AND SUBSEQUENT DAMPING OF INFLATION SINCE THEIR ANNOUNCEMENT IN FEBRUARY 9401040083 940104 TOYS R' US INC PICKS GOLDSTEIN AS TOP OFFICER CHOICE ENDS THE SPECULATION ABOUT LIKELY SUCCESSOR TO RETAILER'S LAZARUS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL TOYS R US INC NAMED MICHAEL GOLDSTEIN CHIEF EXECUTIVE OFFICER ENDING YEARS OF SPECULATION ABOUT WHO WILL SUCCEED CHARLES LAZARUS THE TOY RETAILER'S FOUNDER AND CHIEF ARCHITECT ROBERT NAKASONE FORMERLY VICE CHAIRMAN AND WIDELY REGARDED AS THE OTHER SERIOUS CONTENDER FOR THE TOP EXECUTIVE'S JOB WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER BOTH NEW POSITIONS ANALYSTS SAID THEY EXPECT MESSRS GOLDSTEIN AND NAKASONE TO CONTINUE TO PURSUE MR LAZARUS'S STRATEGY OF DEVELOPING NEW WAYS OF SELLING CHILDREN'S PRODUCTS WHILE OPENING STORES ABROAD WHERE THE CONCEPT OF HIGHVOLUME LOWPRICED STORES THAT KEEP THEIR WAREHOUSE INVENTORIES LOW HASN'T SPREAD AS WIDELY AS IN THE US MR LAZARUS WHO CONTINUES AS CHAIRMAN IS EXPECTED TO RETAIN A STRONG ROLE IN GUIDING THE PARAMUS NJ CONCERN WHICH REVOLUTIONIZED TOY RETAILING AND NOW CONTROLS ABOUT A FIFTH OF THE 14 BILLION US TOY MARKET ALTHOUGH THE 69YEAROLD MR LAZARUS HAS NO IMMEDIATE PLANS TO RETIRE THE APPOINTMENT CLEARLY PUTS MR GOLDSTEIN WHO RETAINS HIS TITLE AS VICE CHAIRMAN FIRST IN LINE TO BECOME THE NEXT CHAIRMAN MR GOLDSTEIN 52 MADE HIS MARK BY SQUEEZING PROFITS OUT OF A MATURE US TOYRETAILING MARKET THROUGH COMPUTERINTENSIVE CONTROL OF INVENTORY AND THE ORDERING OF PRODUCTS SEVERAL LARGE TOY SUPERMARKET CHAINS WHICH COULDN'T CUT COSTS AS EFFECTIVELY AS TOYS R US WENT OUT OF BUSINESS AS A RESULT MR GOLDSTEIN ALSO MAY HAVE WON THE POSITION BY TURNING AROUND KIDS R US THE COMPANY'S ONCESTRUGGLING CHILDREN'S CLOTHING CHAIN SAID SEAN MCGOWAN ANALYST FOR GERARD KLAUER MATTISON & CO ALTHOUGH SALES IMPROVEMENTS HAVEN'T BEEN SPECTACULAR OPERATING PROFIT AT KIDS R US HAS IMPROVED IN THE PAST TWO YEARS MR MCGOWAN SAID HE ESTIMATES THAT OPERATING PROFIT AT THE DIVISION FOR THE FISCAL YEAR ENDING JAN 31 1994 WILL INCREASE ABOUT 25 FOR THE PAST FEW YEARS MR GOLDSTEIN HAS FIELDED WALL STREET'S QUESTIONS ON FINANCIAL RESULTS AT THE END OF EACH QUARTER I DON'T KNOW A SENIOR EXECUTIVE AT ANY OTHER COMPANY WITH AS GREAT A MEMORY FOR DETAIL AS MR GOLDSTEIN SAID MR MCGOWAN YOU CALL HIM UP AND ASK HIM WHAT ABOUT THAT STORE' IF THERE'S AN ISSUE INVOLVED HE KNOWS ABOUT IT RETAILERS HAVE ASKED ME WHO WAS GOING TO GET MR LAZARUS'S JOB MY FEELING WAS THAT IF GOLDSTEIN COULD TURN KIDS R US HE WOULD GET IT MR MCGOWAN SAID MEANWHILE THE INTERNATIONAL SIDE OF TOYS R US' BUSINESS OF WHICH MR NAKASONE 46 HAS BEEN IN CHARGE HAS BEEN A BIT DISAPPOINTING STOCK FALLS ON OVERSEAS RESULTS YESTERDAY TOYS R US SAID THAT SALES FOR THE EIGHT WEEKS ENDED DEC 25 ITS CHRISTMAS SELLING SEASON INCREASED 15 TO 341 BILLION FROM 296 BILLION FOR THE SAME PERIOD A YEAR EARLIER SALES AT STORES OPEN MORE THAN A YEAR ROSE 74 BUT IN A CONFERENCE CALL WITH ANALYSTS LATER THE COMPANY ANNOUNCED THAT OVERSEAS SALES IN THE HOLIDAY SEASON AT STORES OPEN MORE THAN A YEAR WERE DOWN 23 IN LOCAL CURRENCY AND 79 IN US DOLLARS THE ANNOUNCEMENT CAUSED THE COMPANY'S STOCK TO DROP IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY IT CLOSED AT 40 DOWN 875 CENTS ANALYSTS ATTRIBUTED THE SALES DROP TO WEAK FOREIGN ECONOMIES ESPECIALLY THOSE IN GERMANY JAPAN AND SPAIN ALTHOUGH HE IS IN THE NO 2 POSITION MR NAKASONE REMAINS KEY TO THE COMPANY'S FUTURE GROWTH MUCH OF WHICH IT HOPES WILL COME FROM ABROAD TOYS R US HAS SAID IT HAS PLANS TO INCREASE ITS MARKET SHARE OVERSEAS CURRENTLY 2 TO APPROXIMATELY WHAT IT IS IN THE US ABOUT 20 MR LAZARUS WHO WILL NO LONGER BE INVOLVED IN THE DAYTODAY OPERATIONS OF THE COMPANY WILL DEVOTE MORE TIME TO THE INTERNATIONAL PART OF THE BUSINESS SERVING AS A SORT OF AMBASSADOR FOR TOYS R US SAID JOSEPH RONNING ANALYST FOR BROWN BROS HARRIMAN ONE OF MR LAZARUS'S NEW CHORES WILL BE TO VISIT WITH FOREIGN GOVERNMENT OFFICIALS TO CREATE MORE LEVEL PLAYING FIELDS FOR OUR STORES ABROAD MR GOLDSTEIN SAID IN ADDITION MR LAZARUS ALSO WILL PITCH IN DOMESTICALLY BY HELPING THE COMPANY DEVELOP NEW MERCHANDISING CONCEPTS SUCH AS CREATING STORES WITHIN STORES TWO CONCEPTS ALREADY UNDER WAY ARE ITS BOOKS R US AND LEGO BOUTIQUES YOU CAN BE SURE THAT IF THERE'S A MAJOR STRATEGIC OPENING OR TESTING OF A NEW CATEGORY CHARLES WILL HAVE A LOT OF INPUT AND MAY BE THE FINAL ARBITER SAID MR MCGOWAN PRIOR TO JOINING TOYS R US IN 1983 MR GOLDSTEIN WAS SENIOR EXECUTIVE VICE PRESIDENT OPERATIONS AND FINANCE AT LERNER STORES CORP AT TOYS R US HE HAS BEEN EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION AND CHIEF FINANCIAL OFFICER IN ADDITION TO CUTTING COSTS MR GOLDSTEIN HAS PUSHED FOR THE CREATION OF SPECIAL BOUTIQUES WITHIN STORES 9401040082 940104 BUSINESS BRIEFS TUCKER PROPERTIES CORP ACQUIRED HIGH POINT CENTRE A 240000SQUAREFOOT SHOPPING CENTER IN SUBURBAN CHICAGO FOR 144 MILLION KELLY SERVICES INC ACQUIRED YOUR STAFF INC IN A STOCK SWAP TERMS WEREN'T DISCLOSED YOUR STAFF WILL OPERATE AS A KELLY SUBSIDIARY ATKINSON CO OF CALIFORNIA'S WALSH CONSTRUCTION CO UNIT HAS BEEN AWARDED A 52 MILLION CONTRACT TO BUILD A POWER PLANT AT THE STATE UNIVERSITY OF NEW YORK AT STONY BROOK INTERCONTINENTAL BANK OF MIAMI ACQUIRED COMMERCIAL TRUST BANCORP INC AND ITS MAJORITYOWNED SUBSIDIARY COMMERCIAL TRUST BANK IN A 126 MILLION CASH TRANSACTION FIRST ALABAMA BANCSHARES INC BIRMINGHAM ALA COMPLETED THE ACQUISITION OF SECOR BANK FSB ON DEC 31 EQUIFAX INC ACQUIRED COOPERATIVE HEALTHCARE NETWORKS ALPHARETTA GA FROM BELLSOUTH ENTERPRISES TERMS WEREN'T DISCLOSED 9401040081 940104 LETTERS TO THE EDITOR EDUCATION IS MORE THAN TIME SERVED' ARTHUR LEVINE'S DEC 21 EDITORIALPAGE OPINION PIECE COLLEGE MORE THAN SERVING TIME IS A REVEALING EXAMPLE OF PREVAILING ACADEMIC ATTITUDES A COMBINATION OF HIGH PRINCIPLES SELECTIVE EVIDENCE AND A REACTIONARY UNWILLINGNESS TO MAKE CHANGES IN ACADEME FOURYEAR BACCALAUREATES WERE INTRODUCED IN AMERICA BEFORE WE HAD HIGH SCHOOLS AND MOST COLLEGE STUDENTS WERE TEENAGERS TODAY THREEFOURTHS OF ALL COLLEGE GRADUATES GO TO PRESCHOOL AND ONETHIRD GO TO GRADUATE OR PROFESSIONAL SCHOOL DO OUR MOST INTELLECTUALLY KEEN YOUNG PEOPLE REALLY NEED 2023 YEARS OF SCHOOLING BEFORE THEY BEGIN WORK MR LEVINE ALMOST REDEEMS HIS RELUCTANCE TO CHANGE WITH HIS PRINCIPLED LAST SENTENCE IT IS A MISTAKE FOR COLLEGES TO TIE THEIR DEGREES TO TIME SERVED 9401040080 940104 LETTERS TO THE EDITOR CHANNUKAH PASSOVER CELEBRATE FREEDOM IN REGARD TO YOUR DEC 23 EDITORIAL IN HOC ANNO DOMINI I AM A JEW AND THUS RESPECT OUR SISTER RELIGION CHRISTIANITY IN JUDAISM WE ARE TAUGHT THAT RIGHTEOUS CHRISTIANS SHALL SURELY INHERIT THEIR PORTION OF THE KINGDOM TO COME WITH THIS FRAMEWORK PLEASE UNDERSTAND MY COMMENTS THE THRUST OF THE EDITORIAL SEEMS TO BE THAT PAUL OF TAURSUS WARNED US NOT TO LOSE OUR POLITICAL LIBERTIES AND RELIGIOUS FREEDOM AND TO SEEK THE ONE WHOM HE CALLED MESSIAH THEN IT WOULD HAVE BEEN APPROPRIATE TO HAVE WRITTEN AN ANALOGOUS EDITORIAL A WEEK OR TWO EARLIER RELATIVE TO CHANNUKAH AND/OR TO WRITE ONE THE LAST WEEK OF THIS COMING MARCH RELATING THE PASSOVER STORY FOR CHANNUKAH AND PASSOVER ARE NOTHING IF NOT A CELEBRATION OF POLITICAL LIBERTIES AND RELIGIOUS FREEDOM WITHOUT THESE TWO HOLIDAYS THERE WOULD BE NO PAUL OF TAURSUS NOR ANY CHRISTMAS EDITORIALS BUT WHO CAN ARGUE WITH PEACE ON EARTH AND GOODWILL TO MANKIND 9401040079 940104 HEARD ON THE STREET PITTDESMOINES IS LIKELY TO EMERGE A WINNER AS US MOVES TO REPAIR ITS CRUMBLING BRIDGES BY JOHN R DORFMAN AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NO ONE WANTS TO SEE A MAJOR BRIDGE COLLAPSE BUT FRANK PREZELSKI AN ANALYST WITH LADENBURG THALMANN SAYS IT'S BOUND TO HAPPEN MR PREZELSKI REMEMBERS THE MIANUS RIVER BRIDGE COLLAPSE IN CONNECTICUT THAT KILLED THREE PEOPLE IN 1983 GIVEN THE CURRENT STATE OF HIGHWAY BRIDGES IN THE UNITED STATES HE SAYS ANOTHER SUCH DISASTER IS HIGHLY LIKELY IN THE RELATIVELY NEAR FUTURE WHEN THE DISASTER EVENTUALLY HITS MR PREZELSKI PREDICTS THE FEDERAL GOVERNMENT WILL UNLEASH FUNDS IT HAS BEEN HOARDING THAT ARE EARMARKED FOR BRIDGE REPAIR AND STATES ALSO WILL DIG DEEPER TO FIND MONEY TO FIX RUSTING BRIDGES THAT'S ONE REASON HE'S RECOMMENDING PITTDESMOINES THE PITTSBURGHBASED COMPANY ISN'T A PURE PLAY IN BRIDGE REPAIR AND CONSTRUCTION BUT IT GETS A SIGNIFICANT PART OF ITS REVENUE FROM THAT SOURCE IT ALSO MAKES STEEL STORAGE TANKS DISTRIBUTES CONSTRUCTION PRODUCTS AND DOES OTHER ENGINEERING AND CONSTRUCTION WORK ITS STOCK CLOSED YESTERDAY AT 28 UP 1 1/2 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING PITTDESMOINES'S REPORTED EARNINGS HAVEN'T BEEN ANY GREAT SHAKES IN THE 12 MONTHS THROUGH SEPTEMBER 1993 THE COMPANY EARNED 73 CENTS A SHARE SO THE STOCK IS SELLING AT 38 TIMES EARNINGS NO BARGAIN ON THE SURFACE BUT BY OTHER YARDSTICKS COMMONLY USED TO VALUE STOCKS PITTDESMOINES IS BLAZINGLY CHEAP FOR EXAMPLE THE COMPANY'S TANGIBLE BOOK VALUE THE AMOUNT BY WHICH ITS ASSETS EXCEED ITS LIABILITIES COMES TO ABOUT 39 A SHARE AND THE AVERAGE STOCK THESE DAYS SELLS FOR MORE THAN TWICE BOOK VALUE IF PITTDESMOINES WERE MERELY TO SELL AT BOOK VALUE IT WOULD HAVE TO RISE 39 PITTDESMOINES ALSO LOOKS CHEAP RELATIVE TO THE COMPANY'S REVENUE THE REVENUE IS RUNNING AT A CLIP OF ABOUT 350 MILLION A YEAR OR ABOUT 152 A SHARE SO THE STOCK IS AT A DIRTCHEAP 18 OF REVENUE GREG MCCRICKARD VICE PRESIDENT OF T ROWE PRICE ASSOCIATES' SMALL CAP VALUE FUND SAYS PITTDESMOINES IS A VERY CHEAP STOCK AND IT FITS A LOT OF THE WONDERFUL THEMES YOU'D WANT TO PLAY OVER THE NEXT TWO YEARS ULTIMATELY WE'RE GOING TO HAVE TO SPEND SOME MONEY ON OUR INFRASTRUCTURE HE ALSO THINKS A DEMOCRATIC ADMINISTRATION MAY SEE SPENDING ON NEW BRIDGES AS A WAY TO CREATE JOBS PITTDESMOINES IS ONE OF THE LARGEST BRIDGE CONSTRUCTION PLAYS IN THE NATION MR MCCRICKARD SAYS LARGER ENGINEERING AND CONSTRUCTION COMPANIES SUCH AS MORRISON KNUDSEN ARE INVOLVED IN BRIDGE BUILDING OTHERS SAY BUT THAT ASPECT IS DWARFED BY THEIR OTHER OPERATIONS PITTDESMOINES ALSO IS A BIG BUILDER OF WATER TANKS A MARKET TIED TO RESIDENTIAL HOUSING STARTS WHICH ARE SHOWING STRENGTH AND THE COMPANY BUILDS PETROLEUM STORAGE TANKS A SLOW MARKET NOW BUT ONE THAT TRADITIONALLY PICKS UP LATE IN AN ECONOMIC UPTURN THE OILTANK MARKET ALSO COULD GET A BOOST FROM NEW FEDERAL REGULATIONS WHICH MR MCCRICKARD SAYS COULD FORCE REFINERIES TO FORK UP MONEY FOR SAFER TANKS FINALLY PITTDESMOINES'S STEEL SERVICE CENTER BUSINESS IS POSTING BETTER RESULTS AS STEEL PRICES CLIMB ALL IN ALL MR MCCRICKARD FIGURES THE COMPANY CAN EARN ABOUT 4 A SHARE IN A STRONG ECONOMY MR PREZELSKI THINKS PITTDESMOINES COULD BE AN ATTRACTIVE TAKEOVER CANDIDATE AFTER THE DEATH OR RETIREMENT OF WR JACKSON WHO AT THE AGE OF 85 HOLDS THE TITLE CHAIRMAN EMERITUS BUT IS STILL ACTIVE IN THE COMPANY'S AFFAIRS THE JACKSON FAMILY OWNS CLOSE TO HALF OF THE COMPANY'S STOCK SEVERAL MONEY MANAGERS WITH REPUTATIONS AS SHREWD STOCKPICKERS ALSO OWN PITTDESMOINES SHARES AMONG THEM ARE MICHAEL PRICE OF MUTUAL SHARES FUND STEPHEN LIEBER OF EVERGREEN FUND AND REX SINQUEFIELD OF DIMENSIONAL FUND ADVISORS MR SINQUEFIELD IS A QUANTITATIVE MANAGER WHO OWNS HUNDREDS OF STOCKS THAT DISPLAY CERTAIN CHARACTERISTICS IN THIS CASE A HIGH BOOK VALUE RELATIVE TO THE STOCK PRICE BUT OTHER RESPECTED MANAGERS REMAIN LEERY EVERYBODY HAS BEEN LOOKING FOR THIS AREA INFRASTRUCTURE STOCKS TO RALLY AND IT REALLY HASN'T SAYS KEITH D TRAUNER OF CIRCLE ASSET MANAGEMENT IF YOU'RE A GOVERNMENT AND YOU'RE GETTING SQUEEZED WHAT'S YOUR CHOICE YOU CAN DO MAINTENANCE WORK WHICH NOBODY GIVES YOU CREDIT FOR OR WAIT UNTIL THINGS FALL APART ANOTHER MANAGER THINKS PITTDESMOINES LOOKS INTRIGUING AS A CHEAP STOCK AND A POTENTIAL TURNAROUND BUT HESITATES TO BUY IT BECAUSE PROFITS HAVE BEEN ONLY SOSO ONE POTENTIAL PROBLEM WITH BUYING THESE SHARES IS THAT THERE'S SUCH A SMALL FLOAT OR SUPPLY OF PUBLICLY TRADED SHARES EVEN A SMALL PURCHASE CAN PUSH UP THE PRICE WITH SUCH STOCKS MONEY MANAGERS SUGGEST THAT BUYERS BE PATIENT BUY ON DIPS AND EASE IN A LITTLE AT A TIME 9401040077 940104 LEISURE & ARTS AT HOME WITH THE AGELESS KITTY CARLISLE HART BY JOANNE KAUFMAN NEW YORK SHE IS STILL LISTED IN THE PHONE BOOK AS MRS MOSS HART MOST OF THE FURNITURE IN HER APARTMENT JUST OFF MADISON AVENUE WAS CHOSEN BY THE CELEBRATED PLAYWRIGHTDIRECTOR AND IS ARRANGED AS IT WAS IN THE PARK AVENUE DUPLEX THE COUPLE SHARED DURING THEIR 15YEAR MARRIAGE THE SOFA YOU'RE SITTING ON WAS FROM MOSS'S WORKROOM THE MARBLE TABLES WERE FROM THE STUDY SAID KITTY CARLISLE HART GAZING AROUND A ROOM CRAMMED WITH BOOKS AND INSCRIBED PHOTOS FROM AMONG OTHERS TWO OF HER SUITORS SINCLAIR LEWIS AND GEORGE GERSHWIN THE CRYSTAL LAMPS WERE FROM THE LIVING ROOM MOSS SHE ADDED ALWAYS LIVED LIKE AN INDIAN POTENTATE AT THE MOMENT SHE IS NOT SIMPLY POTENTATE'S WIDOW NOT SIMPLY CHAIRWOMAN OF THE NEW YORK STATE COUNCIL ON THE ARTS A POST SHE HAS HELD FOR 17 YEARS BUT ONCE AGAIN BY DINT OF A SMALL ROLE IN THE MOVIE ADAPTATION OF JOHN GUARE'S OFFBROADWAY HIT SIX DEGREES OF SEPARATION KITTY CARLISLE HART ACTRESS DID YOU SEE IT YET HOW DID I LOOK ASKED MRS HART WHO PLAYS A GRAND DAME PRESIDING OVER A LUNCHEON DURING THE MOVIE'S CLIMAX HOW DID SHE LOOK SHE LOOKED GREAT EVEN NOT CONSIDERING HER AGE WHICH HAS BEEN VARIOUSLY REPORTED AS 79 82 AND 83 I NEVER SAY HOW OLD I AM SHE SAID FIRMLY MRS HART ALWAYS LOOKS GREAT HER HAIR IS THE SAME GLOSSY BLACK OF THE MID1930S WHEN SHE STARRED IN A NIGHT AT THE OPERA WITH THE MARX BROTHERS AND SHE LOVES ME WITH BING CROSBY AND SHE STILL HAS THE SHOWGIRL LEGS SHE SHOWED OFF TO SUCH ADVANTAGE IN THE TROUSER ROLE OF PRINCE ORLOVSKY IN CHAMPAGNE SEC AN ENGLISHLANGUAGE VERSION OF DIE FLEDERMAUS THAT PLAYED ON BROADWAY SOME 60 YEARS AGO PUT IT DOWN TO A DAILY TREADMILL WORKOUT AND DAILY STRETCHIES LEG EXERCISES GIVEN HER 40 YEARS AGO BY FITNESS DOYENNE MARJORIE CRAIG OR PUT IT DOWN TO THE BIG SMILE SHE DETERMINEDLY GIVES THE MIRROR EVERY MORNING ALONG WITH THE WORDS KITTY I FORGIVE YOU ABSOLUTION FOR ANY SINS COMMITTED IN THE PREVIOUS 24 HOURS DON'T ANY OF YOU MOVIE MOGULS OUT THERE BELIEVE IT MRS HART WHOSE PREVIOUS FILM APPEARANCE WAS IN WOODY ALLEN'S RADIO DAYS 1987 IS WILLING EAGER AND ROUTINELY UP VERY EARLY I'M LIKE ANY ACTRESS SHE SAID I'M ALWAYS WAITING FOR THE PHONE TO RING THE PHONE RANG PLENTY DURING ONE RECENT AFTERNOON CALLS ABOUT ARTS COUNCIL BUSINESS CALLS ABOUT A SPEECH MRS HART WOULD BE DELIVERING THE NEXT EVENING CALLS ABOUT A DINNER AT THE WALDORFASTORIA HOTEL FOR NEW YORK'S GOVERNOR MARIO CUOMO WHOM MRS HART CALLS GOVERNOR DARLING A CALL FROM MRS HART'S LAWYER A CALL FROM HER ACCOUNTANT DEAR MR GOLDFINE WHOM SHE HOPES CAN ARRANGE HER PENSION FROM THE SCREEN ACTORS GUILD TO QUOTE ALFRED DOOLITTLE I'M NOT LESS DESERVING I'M MORE DESERVING SAID MRS HART INVOKING A CHARACTER FROM MY FAIR LADY THE 1956 BROADWAY HIT DIRECTED BY HER HUSBAND BUT THAT DAY AT LEAST THERE WERE NO CASTING CALLS IT DIDN'T SEEM TO DAMPEN MRS HART'S SUNNY MOOD BUT NOTHING SHORT OF A CUT IN THE ARTS COUNCIL BUDGET LIKE THE 29 MILLION SLASH THREE YEARS AGO COULD DO THAT AS ONE FRIEND PUTS IT KITTY IS ALWAYS EXPECTING GOOD NEWS I FEEL SO LUCKY TO HAVE WORK TO DO AT MY AGE TO BE NEEDED MRS HART EXPLAINED I HAVE NO RIGHT TO BE ANYTHING BUT HAPPY BECAUSE MY CHILDREN ARE WELL MY GRANDCHILDREN ARE GOOD TO ME AND I'M HEALTHY THE ARTS COUNCIL BOARD MEMBERS WHO JOIN MRS HART ON TRIPS AROUND THE STATE TO CHECK ON THE 1250 GROUPS THAT RECEIVE COUNCIL FUNDING THE CAROUSEL MUSEUM IN NORTH TONAWANDA THE PENDRAGON THEATER IN THE ADIRONDACKS THE BOYS CHOIR OF HARLEM MIGHT BE FORGIVEN FOR THINKING THEIR CHAIRWOMAN JUST A BIT TOO HALE SHE'S STRIDING WAY AHEAD OF US WE ALL HAVE TROUBLE KEEPING UP WITH HER SAID COUNCIL VICE CHAIRMAN PETER DUCHIN THE SOCIETY ORCHESTRA LEADER SHE UNDERSTANDS THE ARTS AND THE PLIGHT OF THE ARTS HE ADDED THIS IS NO LARK FOR HER SHE'S A PROFESSIONAL MRS HART'S HIGH MARKS FOR HER WORK AND HER ENDLESSLY CROWDED CALENDAR ARE A PRODUCT OF HER QUITE INSATIABLE CURIOSITY AND AN UTTER INABILITY TO SAY NO TO ANYTHING WHEN MOSS DIED I THOUGHT MY LIFE WAS OVER SHE SAID OF HER HUSBAND'S SUDDEN DEATH FROM A HEART ATTACK IN 1961 BUT I CAME BACK HERE FROM PALM SPRINGS AND SAID YES TO ANYTHING THAT CAME ALONG SHE SAID YES WHEN IN THE EARLY '60S NELSON ROCKEFELLER THEN GOVERNOR OF NEW YORK ASKED HER TO SERVE AS CHAIRWOMAN FOR A SYMPOSIUM ON OPPORTUNITIES FOR WOMEN SHE SAID YES WHEN HE ASKED HER TO HEAD THE STATE'S NEWLY FORMED WOMEN'S UNIT AND YES WHEN HE ASKED HER TO BE VICE CHAIRWOMAN OF THE ARTS COUNCIL BEST JOB IN THE WORLD FOR ME SAID MRS HART WHO ASSUMED THE TOP SPOT WHEN IT WAS VACATED BY JOAN KAPLAN DAVIDSON PEOPLE HELPED ME WHEN I WAS COMING ALONG NOW I COULD HELP EVERYONE COMING UP BEHIND ME MRS HART WAS BORN CATHERINE CONN IN NEW ORLEANS THE DAUGHTER OF A DOCTOR WHO DIED WHEN SHE WAS 10 AND OF A DETERMINED WOMAN WITH BIG PLANS FOR LITTLE KITTY LIKE A MOTHER IN A HENRY JAMES NOVEL SHE TOOK THE THEN 11YEAROLD TO EUROPE TO GROOM HER FOR A BRILLIANT MARRIAGE DESPITE THE MUSIC LESSONS FINISHINGSCHOOL FRENCH DAYS AT MUSEUMS AND NIGHTS AT THE OPERA NO SUCH FINE ALLIANCE WAS FORTHCOMING SO MRS CONN RETHOUGHT MATTERS YOU'RE NOT THE PRETTIEST GIRL I EVER SAW SHE TOLD HER DAUGHTER YOU'RE NOT THE BEST SINGER I EVER HEARD AND YOU'RE CERTAINLY NOT THE BEST ACTRESS I EVER HOPE TO SEE BUT IF WE PUT THEM ALL TOGETHER WE'LL FIND THE HUSBAND YOU'RE LOOKING FOR ON THE STAGE SHE FOUND THE HUSBAND BUT I NEVER GOT WHERE I WANTED TO BE PROFESSIONALLY SAID MRS HART WHO CHOSE THE STAGE NAME CARLISLE FROM THE PHONE BOOK AFTER DISCARDING VERE DE VERE AS A TOUCH TOO ELEGANT BUT OPERETTA WHICH WAS MY FIELD DISAPPEARED AS I WAS COMING ALONG AND I TURNED DOWN THINGS I SHOULDN'T HAVE BUT I'VE HAD A FINE LIFE AND THE THING I CARE ABOUT MOST IS THE FACT THAT I HAVE BEEN ABLE TO MAKE A DIFFERENCE IN SO MANY LIVES MRS HART CANNOT WALK UP ANY MANHATTAN THOROUGHFARE WITHOUT BEING RECOGNIZED AND AFFECTIONATELY HAILED BECAUSE OF HER ADMIRING CONSTITUENCY AND HER FONDNESS FOR COMPLIMENTS MRS HART WHOM SOME WILL REMEMBER AS A PANELIST ON THE LONGRUNNING GAME SHOW TO TELL THE TRUTH NEVER LEAVES HOME LOOKING AS SHE PUTS IT SCHLUMPY FULL DRESS FOR MRS HART INCLUDES A CASHMEREWARM SMILE AND AN ARMOR OF CHARM I DISCOVERED EARLY BECAUSE MY MOTHER WAS GIVEN TO SUCH RAGES THAT I COULD TURN HER WRATH OFF IF I COULD FIND SOMETHING AMUSING TO TELL HER SHE SAID AND I THINK THAT'S PART OF WHAT I DO I TRY TO MAKE PEOPLE LIKE ME AND PEOPLE DON'T LIKE YOU IF YOU'RE SOUR OR SAD THESE SKILLS WILL NO DOUBT PROVE USEFUL AS MRS HART PRESSES AHEAD WITH HER NEXT PROJECT PLANS TO LIGHT THE ABANDONED SMALLPOX MUSEUM ON NEARBY ROOSEVELT ISLAND WHICH IS A BEAUTIFUL RUIN SHE SAID THEN MAYBE IN THE SUMMERTIME WE COULD HAVE MUSIC AND CONCERTS BECAUSE THERE'S A LOVELY PLACE TO PERFORM IF IT WERE LANDSCAPED AND MAYBE SOME OF THE PEOPLE WHO LIVE OPPOSITE IT IN BEEKMAN PLACE WOULD LIKE TO PITCH IN AND HELP FINANCE IT DARLING WHAT ELSE CAN I DO SHE CONTINUED MY OLD AGE IS GOING TO BE HERE NEXT TUESDAY AND I DON'T KNOW HOW TO PLAY BRIDGE MS KAUFMAN IS A WRITER IN NEW YORK 9401040076 940104 DISNEY'S EISNER GOT NO BONUS IN '93 REFLECTING FIRM'S FINANCIAL PROBLEMS BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO'S RECENT FINANCIAL WOES ARE AFFECTING THE FORTUNES OF ITS CHIEF EXECUTIVE FOR THE FIRST TIME SINCE HE CAME TO DISNEY NEARLY 10 YEARS AGO CHAIRMAN MICHAEL EISNER COLLECTED NO BONUS ONLY HIS 750000 SALARY AND A 9600 INSURANCE BENEFIT FOR THE YEAR ENDED SEPT 30 ACCORDING TO PROXY MATERIALS IN FISCAL 1992 THE EXECUTIVE'S BONUS CAME TO 67 MILLION IT WAS 47 MILLION IN 1991 AND 105 MILLION THE YEAR BEFORE THAT FOR MR EISNER HOWEVER FISCAL 1993 WASN'T WITHOUT ANY REWARDS DURING THE YEAR AS ANNOUNCED 13 MONTHS AGO THE EXECUTIVE EXERCISED STOCK OPTIONS ON ABOUT 54 MILLION SHARES OF DISNEY STOCK VALUED AT ABOUT 202 MILLION HE IMMEDIATELY SOLD NEARLY 35 MILLION OF THOSE SHARES FOR AN INDICATED PROFIT OF AROUND 127 MILLION BEFORE PERSONAL TAXES AND BROKERAGE AND LEGAL EXPENSES BUT MR EISNER'S ANNUAL BONUS IS CALCULATED ACCORDING TO A FORMULA BASED ON NET INCOME AND RETURN ON SHAREHOLDER EQUITY AND BOTH THESE CATEGORIES SUFFERED DURING THE PAST YEAR NET INCOME FOR THE YEAR DROPPED TO 2998 MILLION FROM 8167 MILLION A YEAR EARLIER PRIMARILY BECAUSE OF A 3715 MILLION ACCOUNTING CHARGE RELATED TO THE TROUBLED EURO DISNEY THEME PARK DISNEY OWNS 49 OF EURO DISNEY SCA AND MR EISNER RECENTLY CALLED ITS FINANCIAL PERFORMANCE LAST YEAR DREADFUL DISNEY'S RETURN ON SHAREHOLDER EQUITY DROPPED TO 17 BEFORE THE CHARGE FROM AN AVERAGE OF 20 DURING THE PRIOR 10 YEARS SO MR EISNER'S BONUS AND THAT OF DISNEY PRESIDENT FRANK WELLS WHO HAS A SIMILAR EMPLOYMENT AGREEMENT FELL TO ZERO IN FACT MR WELLS'S STRAIGHT SALARY OF 400000 WASN'T ENOUGH TO GET HIM ON THE LIST OF DISNEY'S FIVEHIGHEST COMPENSATED CORPORATE EXECUTIVES AS LISTED IN THE PROXY STATEMENT DISNEY'S TOP MOVIE AND TELEVISION EXECUTIVES AREN'T CORPORATE OFFICERS AND THUS DON'T HAVE TO BE LISTED UNDER SECURITIES AND EXCHANGE COMMISSION REGULATIONS MANY OF THESE EXECUTIVES MAKE MORE IN BASE SALARY THAN MR EISNER WHEN HE EXERCISED HIS OPTIONS 13 MONTHS AGO MR EISNER SAID HE HAD TAKEN THE ACTION BECAUSE OF NEW REGULATIONS THAT WOULD ELIMINATE CERTAIN CORPORATE TAX BREAKS MR WELLS EXERCISED OPTIONS AND SOLD SHARES FOR AN INDICATED PROFIT OF 603 MILLION BEFORE TAXES AND EXPENSES MR EISNER CONTINUES TO HOLD OPTIONS ON ANOTHER EIGHT MILLION DISNEY SHARES HALF OF WHICH ARE CURRENTLY EXERCISABLE ALL THE REMAINING OPTIONS WERE VALUED AT 1614 MILLION AT THE END OF THE FISCAL YEAR AND WOULD BE WORTH ABOUT 5 A SHARE MORE BASED ON YESTERDAY'S CLOSING STOCK PRICE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING DISNEY SHARES CLOSED AT 43125 ACCORDING TO THE PROXY STATEMENT MR EISNER CURRENTLY OWNS ABOUT 29 MILLION DISNEY SHARES OR 131 OF THE STOCK OUTSTANDING 9401040075 940104 WHO'S NEWS TJX COS TJX COS FRAMINGHAM MA JOHN M NELSON WAS ELECTED A DIRECTOR OF THIS OFFPRICE SPECIALTY APPAREL RETAILER MR NELSON IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WYMANGORDON CO HIS ELECTION FILLS A VACANCY ON THE 10MEMBER BOARD 9401040074 940104 SMALL STOCK FOCUS ISSUES DECLINE AS INVESTORS TAKE BACK SOME OF THE PROFITS MADE LAST WEEK BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCK INVESTORS DIDN'T BEGIN THE NEW YEAR WITH QUITE THE SAME ENTHUSIASM THEY HAD AT THE END OF 1993 TRADERS SAID PROFITTAKERS TOOK BACK MOST OF THE GAINS MADE THURSDAY AND FRIDAY ON ENDOFYEAR AND QUARTERPORTFOLIO ADJUSTING BUT BECAUSE VOLUME WAS LIGHT YESTERDAY AND LATE LAST WEEK OBSERVERS SAY RECENT MOVES MAY HAVE BEEN EXAGGERATED AND SHOULDN'T BE VIEWED AS TOO MEANINGFUL IT WAS VERY QUIET TODAY SAID JOE LOFTUS SENIOR VICE PRESIDENT OF NASDAQ TRADING AT LEHMAN BROTHERS INC THERE WAS EXTRA YEAREND WINDOWDRESSING LAST WEEK AND WE SAW THE NEW YEAR'S HANGOVER TODAY THE RUSSELL 2000 INDEX WHICH FELL 205 POINTS OR 079 TO END AT 25653 GAVE BACK MOST OF FRIDAY'S ADVANCE WHEN IT CLIMBED 240 POINTS THE BAROMETER TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE MAJOR EXCHANGES THE CORRECTION STARTED WITH THE TECHNOLOGY SECTOR WHICH DID SOME DAMAGE TO THE NASDAQ COMPOSITE INDEX THE MEASURE DROPPED 604 POINTS OR 078 TO FINISH AT 77076 AFTER JUMPING 572 POINTS FRIDAY NASDAQ LOSING ISSUES BEAT OUT GAINERS 1644 TO 1430 ON NASDAQ NATIONAL MARKET VOLUME OF 211851400 SHARES AND TOTAL VOLUME OF 253023000 ON FRIDAY NASDAQ NATIONAL MARKET VOLUME REGISTERED 203073900 SHARES AND OVERALL TURNOVER STOOD AT 253849700 LARGER TECHNOLOGY STOCKS SUCH AS SYNOPSYS ADOBE SYSTEMS AND APPLIED MATERIALS ALL LOST AT LEAST A POINT SMALLER ISSUES ALSO SUFFERED FOR EXAMPLE BIOLOGIC SYSTEMS A MUNDELEIN ILL DESIGNER OF COMPUTERBASED ELECTRODIAGNOSTIC SYSTEMS FELL 5/8 TO 3 1/8 MADGE NV A DUTCH TOKEN RING PRODUCTS MAKER LOST 1 1/8 TO 13 7/8 AND SYM TEK SYSTEMS A SAN DIEGO SEMICONDUCTOR TESTING COMPANY DECLINED 7/16 TO 5 7/16 A FEW TECHNOLOGY COMPANIES POSTED GAINS ON NEWS HOWEVER MANUGISTICS GROUP A ROCKVILLE MD SOFTWARE COMPANY JUMPED 2 1/4 TO 12 AFTER ALEX BROWN & SONS INC ADDED THE STOCK TO ITS SELECTED INVESTMENT LIST ISG INTERNATIONAL SOFTWARE GROUP OF ISRAEL ADDED 7/8 TO 10 THE COMPANY SAID IT HAS ENTERED INTO AN AGREEMENT TO ACQUIRE FOR 450000 COMMON SHARES CORTEX A WALTHAM MASS DEVELOPER AND MARKETER OF A REPOSITORYBASED APPLICATION DEVELOPMENT TOOL ISG SAID EXPANDED PRODUCT OFFERINGS AND NEW MARKETING CHANNELS IN SOUTHEAST ASIA THE UNITED KINGDOM AND AUSTRALIA COULD TRIPLE ITS REVENUE OVER THE NEXT YEAR INTERESTRATE SENSITIVE STOCKS DREW SELLING AS INTEREST RATES SHOT HIGHER FOLLOWING NEWS THAT THE MANUFACTURING SECTOR EXPANDED LAST MONTH AND NOVEMBER CONSTRUCTION SPENDING ROSE THE LONG BOND LOST MORE THAN A POINT SENDING THE YIELD TO 642 LOSERS INCLUDED PLAZA HOME MORTGAGE SANTA ANA CALIF DOWN 1 TO 7 3/8 NBT BANCORP NORWICH NY WHICH FELL 3/4 TO 17 1/2 AND INTERCONTINENTAL BANK WHICH LOST 3/4 TO 19 1/4 IN THE COMMUNICATIONS SECTOR FIRST PACIFIC NETWORKS A SUNNYVALE CALIF DESIGNER OF DIGITAL SWITCHING TECHNOLOGY CLIMBED 1 1/2 TO 12 1/4 MARKET PLAYERS ATTRIBUTED THE ADVANCE TO NEWS REPORTS IN JAPAN OVER THE WEEKEND THAT THE COMPANY MIGHT HAVE REACHED A DEAL WITH NEW YORK STOCK EXCHANGETRADED SONY TO SELL ITS PRODUCTS IN JAPAN BUT STANFORD TELECOMMUNICATIONS PLUNGED 3 7/8 TO 16 FOLLOWING A FISCAL THIRDQUARTER EARNINGS OUTLOOK THE SUNNYVALE CALIF COMPANY EXPECTS ITS EARNINGS FROM THE PERIOD TO BE RELATIVELY UNCHANGED FROM THE 630000 OR 13 CENTS A SHARE RECORDED IN THE YEAREARLIER QUARTER ELSEWHERE WILLIAMSSONOMA SAGGED 2 3/4 TO 38 1/2 AN ARTICLE IN THIS WEEK'S BARRON'S SUGGESTED THAT THE STOCK PRICE OF THE SAN FRANCISCO OPERATOR OF SPECIALTY STORES IS TOO HIGH ITS SHARES ARE SELLING AT 45 TIMES THIS YEAR'S ESTIMATED EARNINGS AND 34 TIMES NEXT YEAR'S RFS HOTEL INVESTORS MEMPHIS TENN FELL 1 1/2 TO 13 1/4 THE COMPANY SAID IT PLANS TO ACQUIRE A 96UNIT RESIDENCE INN IN KANSAS CITY MO GAINERS INCLUDED SAN DIEGO BIOTECHNOLOGY COMPANY VICAL INC WHICH ROSE 1 1/2 TO 15 THE WALL STREET JOURNAL REPORTED THAT THE COMPANY HAS GOTTEN OFF TO A FAST START INCREASING REVENUE BY PIONEERING THE USE OF A TREATMENT CALLED NAKED DNA TO REACH ITS GOAL OF PROVIDING SIMPLER AND CHEAPER TREATMENTS IN THE GENETHERAPY FIELD ON THE BIG BOARD ALLIED PRODUCTS GAINED 1 5/8 TO 14 1/8 THE CHICAGO COMPANY COMPLETED THE SALE OF ITS WHITENEW IDEA FARM EQUIPMENT SUBSIDIARY TO AGCO IN A CASH TRANSACTION BIG BOARDLISTED CRANE CO EDGED UP 5/8 TO 25 3/8 THE STAMFORD CONN VALVE MANUFACTURER SAID IT HAS ACQUIRED A 132 STAKE IN MARK CONTROLS AND MAY SEEK REPRESENTATION ON THE COMPANY'S BOARD LOOKING AHEAD MR LOFTUS OF LEHMAN BROTHERS SAID THE EXPECTED JANUARY EFFECT WHICH WAS NOWHERE IN SIGHT YESTERDAY MAY BE VERY LIMITED FOR THE REST OF THE MONTH BECAUSE MANY INVESTORS GOT AN EARLY START LAST YEAR THE SEASONAL TREND REFERS TO BUYING BACK STOCKS THAT WERE BEATEN DOWN LATE THE PREVIOUS YEAR ON TAXRELATED SELLING STOCKS ARE GOING TO TRADE ON THEIR OWN HE SAID SPECIFIC COMPANIES ARE GOING TO BE GRADED ON THEIR ABILITY TO GROW EARNINGS FOURTHQUARTER CORPORATE PROFIT REPORTS WHICH START FLOODING THE MARKET IN THE NEXT FEW WEEKS ARE SEEN AS THE NEXT MAJOR FOCUS FOR EQUITY PRICES NASDAQ NATIONAL MARKET STOCKS THAT HIT NEW HIGHS FOR THE YEAR TO DATE TOTALED 80 WHILE 16 HIT NEW LOWS 9401040072 940104 ALIVE AND KICKING DEPARTMENT STORES SEEMINGLY OUTMODED ARE PERKING UP AGAIN LEANER NOW THEY BENEFIT FROM TRENDS LIKE AGING OF THE BABY BOOMERS FEDERATED'S BIG BET ON MACY BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI PEOPLE SURPRISED BY FEDERATED DEPARTMENT STORES INC'S BOLD RUN AT RH MACY & CO MAY WONDER WHETHER THE SUITOR KNOWS SOMETHING ABOUT DEPARTMENT STORES THAT THEY DON'T IT MIGHT THE FACT IS THAT DEPARTMENT STORES ALL BUT WRITTEN OFF FOR DEAD A COUPLE OF YEARS AGO HAVE BEEN SHOWING SIGNS OF LIFE LATELY ENOUGH SIGNS THAT SOME OTHERS IN THE RETAILING INDUSTRY IN ADDITION TO FEDERATED ARE READY TO BET THEIR MONEY ON A REVIVAL OF THIS TRADITIONAL STORE WHILE THE GOVERNMENT'S RETAILSALES FIGURES FOR THE HOLIDAY SHOPPING SEASON AREN'T AVAILABLE YET RECEIPTS AT DEPARTMENT STORES WHERE CUSTOMERS USED MASTERCARDS JUMPED 32 FROM A YEAR AGO BETWEEN THANKSGIVING AND CHRISTMAS EVE THE BEST SHOWING OF ANY RETAIL CATEGORY SEVERAL SPECIAL FACTORS HELP EXPLAIN THIS INCREASE SOME DEPARTMENTSTORE CHAINS BEGAN ACCEPTING MASTERCARD JUST LAST YEAR FOR INSTANCE BUT PLENTY OF SIGNS SUGGEST A REBIRTH AN ARTHUR ANDERSEN & CO SURVEY LAST FALL OF WHERE CONSUMERS SHOP FOUND THEM RETURNING TO DEPARTMENT STORES AFTER YEARS OF DECLINING MARKET SHARE AT SUCH RETAILERS THE ACCOUNTING FIRM FOUND THAT 80 OF THE PEOPLE WHO HAD GONE SHOPPING ANYWHERE HAD SHOPPED AT DEPARTMENT STORES UP FROM 60 THE PREVIOUS YEAR FURNITURE AND HOMEFURNISHINGS SALES TRADITIONAL FARE IN DEPARTMENT STORES GREW 98 THROUGH THE FIRST 10 MONTHS OF LAST YEAR MORE THAN DOUBLE THE 36 GROWTH IN RETAIL SALES OF NONDURABLE GOODS THE COMMERCE DEPARTMENT REPORTS DEPARTMENTSTORE CHAINS ARE BETTING HEAVILY ON THEIR FUTURE BY BUILDING HEAVILY MAY DEPARTMENT STORES CO THE NATION'S LARGEST TRADITIONAL CHAIN PLANS TO SPEND 46 BILLION OVER THE NEXT FIVE YEARS TO BUILD 100 NEW STORES AND REMODEL ANOTHER 100 FEDERATED SAYS IT WILL SPEND 12 BILLION OVER THE NEXT THREE YEARS UPGRADING ITS 217 DEPARTMENT STORES AND BUILDING 40 NEW ONES THE AGING BABYBOOMER POPULATION AND OTHER DEMOGRAPHIC TRENDS FAVOR DEPARTMENT STORES THE NUMBER OF TYPICAL DEPARTMENTSTORE SHOPPERS 45 TO 54 YEARS OLD WILL RISE 46 IN THE 1990S SAYS ROGER BLACKWELL AN OHIO STATE UNIVERSITY PROFESSOR WHO STUDIES CONSUMER BEHAVIOR MEANWHILE THE NUMBER OF PEOPLE 25 TO 34 TYPICAL DISCOUNTSTORE SHOPPERS WILL DECLINE 17 ALREADY MANY DEPARTMENT STORES ARE ACHIEVING STRONG PROFIT GROWTH THREE CHAINS JC PENNEY CO MAY AND SEARS ROEBUCK & CO EACH POSTED RECORD PROFITS IN THE FIRST NINE MONTHS OF 1993 AND WALL STREET HAS GOT THE MESSAGE DEPARTMENT STORES WERE THE ONLY RETAIL GROUP WHOSE STOCK INDEX CLIMBED IN 1993 ACCORDING TO STANDARD & POOR'S CORP DEPARTMENTSTORE STOCKS WHICH INCLUDE MAY AND PENNEY GAINED 78 LAST YEAR WHILE SPECIALTYAPPARELSTORE STOCKS FELL 18 AND DISCOUNTER STOCKS DROPPED 6 THE COMING YEAR MAY BE THE YEAR OF THE BIG STORE SAYS JAY SCANSAROLI DIRECTOR OF ANDERSEN'S RETAILINDUSTRY PRACTICE WHAT A DIFFERENCE FROM JUST TWO YEARS AGO WHEN SOME RETAILINDUSTRY EXPERTS HAD ALL BUT WRITTEN THE DEPARTMENT STORE'S OBITUARY FEDERATED WAS IN BANKRUPTCY PROCEEDINGS AND SEVERAL OTHER DEPARTMENTSTORE OPERATORS WERE IN TROUBLE BECAUSE OF GROWING COMPETITION FROM SPECIALTY APPAREL RETAILERS AND DISCOUNTERS THRONGS OF YOUNG SHOPPERS ADULTS IN PARTICULAR DESERTED DEPARTMENT STORES FOR RETAILERS OFFERING INEXPENSIVE BASIC FASHIONS BUT THESE DAYS IT IS SOME DEPARTMENTSTORE RIVALS THAT ARE HAVING THEIR TROUBLES LIMITED INC'S WOMEN'S APPAREL LINES AREN'T SELLING WELL MERRYGOROUND ENTERPRISES A SELLER OF HIP CLOTHING TO YOUNG ADULTS IS TEETERING ON THE EDGE DISCOUNTER KMART CORP HAS POSTED LOWER EARNINGS FOR THREE CONSECUTIVE QUARTERS AND HAS UNDERTAKEN A BROAD RESTRUCTURING MEANWHILE DEPARTMENT STORES HAVE MOVED FORCEFULLY TO CLEAN UP THEIR ACTS THEY HAVE DROPPED MONEYLOSING LINES SUCH AS MAJOR APPLIANCES AND ADOPTED THE PURCHASING AND INVENTORY PRACTICES THAT HELP MAKE DISCOUNTERS SO SUCCESSFUL SEARS FOR EXAMPLE HAS CLEARED SOME 700000 SQUARE FEET OF SPACE IN ITS STORES ENOUGH FOR SEVEN NEW STORES BY MOVING SOME FURNITURE DEPARTMENTS INTO STANDALONE STORES AND CONVERTING TO RETAIL USE SPACE FORMERLY OCCUPIED BY REPRESENTATIVES OF HOMEIMPROVEMENT CONTRACTORS FURTHERMORE MANY DEPARTMENTSTORE CHAINS HAVE STRENGTHENED THEIR BALANCE SHEETS SLOPPY FINANCIAL MANAGEMENT ESPECIALLY ILLCONCEIVED LEVERAGED BUYOUTS PLAYED AS BIG A ROLE IN TRIGGERING PROBLEMS AS DID WEAK OPERATING STRATEGIES COMPANIES HAVE SHED NONCORE BUSINESSES AND SLASHED DEBT IN SOME CASES BY FILING FOR PROTECTION AGAINST CREDITORS MAY HAS REDUCED ITS LONGTERM DEBT IN THE PAST TWO YEARS TO 46 OF TOTAL CAPITAL FROM 54 ALL THESE FACTORS HAVE HELPED DEPARTMENT STORES RECAPTURE MARKET SHARE ESPECIALLY FROM SPECIALTY APPAREL STORES A RECENT SURVEY OF 30000 SHOPPERS BY STILLERMAN JONES & CO AN INDIANAPOLIS RESEARCH FIRM FOUND THAT A DEPARTMENTSTORE CUSTOMER SPENT AN AVERAGE 4126 PER VISIT LAST YEAR UP 42 FROM 2907 IN 1989 BEFORE ADJUSTING FOR INFLATION SPENDING IN WOMEN'S APPAREL STORES GREW JUST 33 TO 2907 PERCUSTOMER VISIT OVER THE SAME PERIOD THOUGH SUCH STORES HAVE BEEN ESPECIALLY HURT BY WIDESPREAD WEAKNESS IN SALES OF APPAREL AND PARTICULARLY WOMEN'S APPAREL THE STEPS THAT DEPARTMENT STORES HAVE TAKEN TO IDENTIFY AND REACT TO WHAT THEIR CUSTOMERS WANT ARE BEGINNING TO PAY OFF ARTHUR ANDERSEN'S MR SCANSAROLI SAYS FEDERATED CHAIRMAN ALLEN I QUESTROM STRONGLY AGREES THE AMERICAN DEPARTMENT STORE WHEN MANAGED TO MAXIMIZE STRENGTH IS A VIABLE AND POWERFUL RETAIL FORMAT HE SAYS WE SEE DEPARTMENT STORES AS THE FORMAT OF CHOICE IN THE FUTURE TO BE SURE SOME DEEP DISCOUNTERS SUCH AS WALMART STORES INC CONTINUE TO REGISTER IMPRESSIVE SALES GROWTH AND NOT ALL DEPARTMENT STORES ARE OUT OF THE WOODS FEDERATED'S TAKEOVER TARGET MACY HAS BEEN IN BANKRUPTCY PROTECTION SINCE JANUARY 1992 AND HASN'T SET A DATE FOR ITS EMERGENCE SALES AT MACY'S 207 STORES HAVE BEEN ONLY RUNNING EVEN WITH YEARAGO LEVELS CARTER HAWLEY HALE STORES HAS HAD ONLY FLAT SALES SINCE EMERGING FROM CHAPTER 11 IN SEPTEMBER 1992 EVEN AT FEDERATED SALES AT STORES OPEN A YEAR OR MORE WERE UP JUST 18 IN THE NINE MONTHS ENDED OCT 30 MOREOVER DEPARTMENT STORES HAVE TO COMBAT CATALOG COMPANIES WHOSE SALES GAINS HAVE STEADILY OUTPACED OVERALL INCREASES IN RETAIL SALES AND EVENTUALLY DEPARTMENT STORES MAY FACE STRONG COMPETITION FROM INTERACTIVESHOPPING NETWORKS SUCH AS THE ONE PARAMOUNT COMMUNICATIONS IS READYING IN CONJUNCTION WITH CATALOGMERCHANT SPIEGEL INC BUT DEPARTMENT STORES ARE MAKING INROADS AGAINST SPECIALTY APPAREL CHAINS SUCH AS LIMITED WHICH HAVE LOST SOME OF THEIR MARKETING FOCUS STRUGGLING TO REGROUP FOR EXAMPLE LIMITED PLANS TO CLOSE OR SHRINK 360 OF ITS 4481 SPECIALTY STORES AND BUY BACK 500 MILLION OR 6 OF ITS STOCK NAMES UNDER WHICH LIMITED OPERATES STORES INCLUDE LERNER VICTORIA'S SECRET LIMITED AND LIMITED TOO THE DEPARTMENTSTORE INDUSTRY GOT ITS START IN 1852 WHEN A 26YEAROLD QUAKER NAMED POTTER PALMER OPENED A STORE IN CHICAGO THAT WOULD LATER BECOME MARSHALL FIELD SINCE THEN SUCH STORES HAVE SEEN EVERY FORM OF COMPETITION OUT THERE AND THEY'RE STILL WITH US NOTES KIM WALIN AN INDUSTRY ANALYST AT LEHMAN BROTHERS FEDERATED'S AMBITIOUS PLANS TOP OFF A TURNAROUND THAT BEGAN AFTER IT FILED FOR BANKRUPTCYLAW PROTECTION IN EARLY 1990 AT THE TIME IT HAD A CRUSHING 82 BILLION DEBT A CUMBERSOME BUREAUCRACY AND AN ANTIQUATED OPERATIONAL SYSTEM UNDER WHICH NEARLY AUTONOMOUS DIVISIONS DUPLICATED BUYING AND CREDITCARD FUNCTIONS MANY OF ITS STORES NEEDED A FACE LIFT AND CARRIED A HODGEPODGE OF MERCHANDISE MOST OF THAT HAS CHANGED SINCE MR QUESTROM BECAME CHAIRMAN IN 1990 THE 53YEAROLD MR QUESTROM HAD LEFT THE COMPANY IN 1988 BUT RETURNED JUST AFTER THE BANKRUPTCY FILING IN DOING SO HE REJOINED JAMES ZIMMERMAN WHO WAS NAMED PRESIDENT IN 1988 THE TWO ARE CREDITED WITH TURNING AROUND FEDERATED'S RICH'S CHAIN BASED IN ATLANTA IN THE EARLY 1980S AT THE PARENT COMPANY THE TWO EXECUTIVES BEGAN BY SLASHING ITS HEADQUARTERS STAFF BY 12 THEY ELIMINATED THE POSITIONS OF THREE VICE CHAIRMEN STORE DIVISION CHIEFS NOW REPORT DIRECTLY TO MR ZIMMERMAN THE COMPANY STREAMLINED ITS OPERATING DIVISIONS AS WELL BY SELLING OR CLOSING 42 STORES AND CONSOLIDATING THREE FLORIDA STORE DIVISIONS INTO ONE IN THE PROCESS FEDERATED ALSO REDUCED ITS DEBT BY 13 BILLION IN THE PAST YEAR TO A LEVEL WHERE THE AVERAGE INTEREST RATE IT PAYS IS ABOUT 75 DOWN FROM 18 PREBANKRUPTCY WHEN IT HAD POOR CREDIT RATINGS ACQUISITION OF THE MACY DEBT WON'T AFFECT FEDERATED'S 12 BILLION CAPITALSPENDING PLAN TODAY FEDERATED HAS 217 STORES IN ITS SEVEN DIVISIONS BLOOMINGDALE'S ABRAHAM & STRAUS/JORDAN MARSH IN THE NORTHEAST RICH'S IN THE SOUTH BURDINES IN FLORIDA BON MARCHE IN THE NORTHWEST STERN'S IN NEW JERSEY AND NEW YORK AND LAZARUS IN THE MIDWEST WE USED TO OPERATE LIKE SEVEN 1 BILLION COMPANIES INSTEAD OF ONE 7 BILLION CORPORATION MR ZIMMERMAN SAYS THE COMPANY'S STREAMLINING HAS INCLUDED DISMISSAL OF SOME VETERAN EMPLOYEES IN JULY IT TOLD 1000 LONGTIME SALES CLERKS IN ITS JORDAN MARSH STORES TO ACCEPT PAY CUTS OF AS MUCH AS 60 OR TAKE SWEETENED EARLYRETIREMENT OFFERS A CONSOLIDATION OF FEDERATED'S ACCOUNTSRECEIVABLES OPERATIONS IS CUTTING 200 JOBS FEDERATED IS SO CONFIDENT OF ITS NEW OPERATING INITIATIVES THAT IT IS BUILDING SPLASHY NEW STORES SUCH AS THE 20 MILLION BURDINES MODEL IN THE PEMBROKE PINES MALL NEAR FORT LAUDERDALE FLA THE STORE HAS A GLEAMING CRYSTAL DISPLAY AT ITS ENTRANCE AND A SUNLIT ATRIUM BUT THE STORE ONLY LOOKS EXCLUSIVE ABOUT 75 OF THE MERCHANDISE FROM GRUNGE TO GLITZ 15 SHORTS TO 250 SILK BLOUSES IS IDENTICAL TO THAT IN FEDERATED'S OTHER STORES WITH THE EXCEPTION OF ITS 15 BLOOMINGDALE'S STORES THAT SAVES MILLIONS IN INVENTORY CHAIM EDELSTEIN CHAIRMAN OF FEDERATED'S ABRAHAM & STRAUS DIVISION EXPLAINS HOW THIS WORKS AS HE WALKS THROUGH WOMEN'S READYTOWEAR AT THE A&S AT THE ROOSEVELT FIELD MALL IN GARDEN CITY NY POINTING TO A RACK JUST OFF THE CENTER AISLE HE SAYS THIS TSHIRT PROGRAM YOU WILL SEE IN EVERY STORE A COUPLE OF ROWS AND A FEW PACES OVER HE MAKES A SIMILAR COMMENT ABOUT STACKS OF WHITE COTTON PANTS SELLING FOR 35 AND OF SILK BLOUSES SELLING FOR 43 AT THE BACK OF THE WOMEN'S SECTION THREE SALE RACKS ARE MARKED 25 50 AND 75 OFF THE 25OFF RACK IS WHERE MERCHANDISE MOVES IF IT HASN'T SOLD WELL SOMETIMES AFTER JUST THREE WEEKS ON THE FLOOR AND EVERY FOUR WEEKS AFTER THAT IT MOVES A STEP FARTHER DOWN OUR BEST CUSTOMERS ARE IN OUR STORES ONE TO THREE TIMES A MONTH SAYS KAREN M HOGUET FEDERATED'S SENIOR VICE PRESIDENT OF PLANNING AND TREASURER IF A CERTAIN ITEM ISN'T SELLING IT ISN'T GOING TO GET BETTER IN TWO OR THREE WEEKS THE RESULT IS THAT 84 OF FEDERATED'S APPAREL SELLS WITHIN 13 WEEKS OF ARRIVING ON THE FLOOR UP FROM 72 THREE YEARS AGO FEDERATED SAYS IT NOW HAS A BETTER IDEA WHICH GOODS IN ITS VAST COLLECTIONS WILL SELL WELL BECAUSE ITS BUYERS SHARE INFORMATION MUCH MORE FREQUENTLY THAN THEY DID BEFORE THE BANKRUPTCY MS HOGUET FORMERLY A CHILDREN'SCLOTHING BUYER IN FEDERATED'S LAZARUS DIVISION RECALLS A RULE THAT FORBADE DIVISIONS TO SHARE INFORMATION THERE WAS A BUYER IN THE RICH'S DIVISION WHO WAS RACKING UP PHENOMENAL SALES AND I COULDN'T TALK TO HER SHE SAYS THAT HAS CHANGED BLOUSES THAT SELL WELL IN FLORIDA THIS WINTER FOR EXAMPLE WILL BE PROMINENT IN SPRING COLLECTIONS IN THE NORTH AND ONE OF FEDERATED'S MOST PROFITABLE INITIATIVES HAS BEEN TO SELL MORE HOME FURNISHINGS A HOT ITEM RIGHT NOW SALES INCREASES FOR FURNITURE AND HOME ACCESSORIES ARE RUNNING AT TWICE THE PACE OF APPAREL SALES FEDERATED HAS ALTERED ITS MERCHANDISING STRATEGY TOO MOST OF ITS STORES FORMERLY CATERED TO MIDDLE AND UPPERINCOME PEOPLE AND LEFT DISCOUNTING TO DISCOUNTERS BUT THESE DAYS FEDERATED SELLS LESSEXPENSIVE MERCHANDISE THAT RIVALS THAT OF DISCOUNT STORES IN PRICE WE SELL JEANS FOR 2995 EVERYDAY SAYS BURDINE'S EXECUTIVE HOWARD SOCOL THAT'S THE SAME PRICE WALMART'S DEEP DISCOUNTING SAM'S WAREHOUSE CLUB CHARGES FOR BRANDNAME JEANS IT WASN'T ALWAYS THAT WAY MR SOCOL NOTES FEDERATED ISN'T DECLARING VICTORY YET AGAINST ITS SPECIALTYSTORE AND DISCOUNTSTORE RIVALS SAYS CHAIRMAN QUESTROM IT'S A 100FOOT LADDER AND WE'VE JUST GONE UP 10 FEET BUT HE SAYS MERGERS SUCH AS MACYFEDERATED ARE CRITICAL IF DEPARTMENT STORES ARE TO OFFER THE BEST SERVICE TO CONSUMERS IN THE 1990S AND COMPETE WITH THE MANY OTHER RETAILERS TIME WARNER INC AND SPIEGEL INC ARE JOINTLY DEVELOPING AN INTERACTIVE TELEVISION SHOPPING NETWORK A PAGEONE ARTICLE YESTERDAY ON DEPARTMENT STORES INCORRECTLY IDENTIFIED PARAMOUNT COMMUNICATIONS AS SPIEGEL'S PARTNER 9401040071 940104 CORRECTIONS & AMPLIFICATIONS VANGUARD GROUP SAYS CASH FLOWING INTO ITS EQUITY MUTUAL FUNDS IN DECEMBER ROSE 100 FROM NOVEMBER NOT 10 AS REPORTED IN AN ARTICLE FRIDAY ABOUT SALES OF MUTUAL FUNDS 9401040070 940104 HOOGOVENS TO POST LOSS FOR '93 DESPITE COSTCUTTING MOVES SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM HOOGOVENS NV REITERATED THAT IT EXPECTS TO POST A LOSS FOR 1993 DESPITE BETTERTHANEXPECTED SAVINGS FROM COSTCUTTING MEASURES IN A NEW YEAR'S ADDRESS TO EMPLOYEES CHAIRMAN MC VAN VEEN SAID THE STEEL AND ALUMINUM COMPANY REMAINED IN THE RED IN 1993 AFTER A NET LOSS OF 595 MILLION GUILDERS 3063 MILLION THE YEAR EARLIER EVEN THOUGH COSTCUTTING PROGRAMS PUT INTO EFFECT DURING THE PAST YEAR PRODUCED SAVINGS OF AROUND 450 MILLION GUILDERS WELL ABOVE THE 350 MILLION GUILDERS ORIGINALLY EXPECTED OF THAT TOTAL ROUGHLY 350 MILLION GUILDERS IN SAVINGS WERE GENERATED BY THE STEELMAKING OPERATIONS MR VAN VEEN SAID HOWEVER DESPITE SAVINGS FROM LOWER OPERATING COSTS AS WELL AS PREVIOUSLY ANNOUNCED PRICE INCREASES EFFECTIVE FROM THE BEGINNING OF THIS YEAR IT IS TOO SOON TO MAKE A FORECAST ABOUT THE COMPANY'S CHANCES OF RETURNING TO PROFIT A COMPANY SPOKESMAN SAID IN AUGUST HOOGOVENS SAID IT WOULD RAISE PRICES FOR ITS COATED AND UNCOATED COLDROLLED STEEL AND FOR HOTROLLED STEEL PRODUCTS BY 50 GUILDERS A TON AS OF JAN 1 FOLLOWING AN INCREASE IN OCTOBER HOOGOVENS LIKE OTHER EUROPEAN STEELMAKERS HAS BEEN GRAPPLING WITH NARROWING PROFIT MARGINS IN THE FACE OF WORLDWIDE ECONOMIC RECESSION THAT HAS HURT DEMAND FOR STEEL ALSO A BURGEONING SUPPLY OF CHEAP EXPORTS FROM EASTERN AND CENTRAL EUROPE AS WELL AS THE FORMER SOVIET UNION HAS CREATED PRICING PRESSURES MR VAN VEEN ADDED THAT WHILE OVERALL ECONOMIC AND MARKET CONDITIONS REMAINED SOMEWHAT UNCERTAIN THE COMPANY'S FINANCIAL SITUATION HAD BEEN CALMED BY THE 362 MILLION GUILDER INFLOW FROM A TWOSTAGE SHARE ISSUE AS A RESULT OF THE ISSUE CREDITORS HAD EXTENDED HOOGOVENS'S MATURING 1 BILLION GUILDER STANDBY CREDIT FACILITY ANOTHER THREE YEARS HE SAID INDEED LATE LAST YEAR THERE HAD BEEN CONSIDERABLE MARKET TALK THAT HOOGOVENS WAS TEETERING ON THE BRINK OF BANKRUPTCY DUE TO A STAGGERING DEBT BURDEN THAT IT COULD NEITHER PAY OFF NOR REFINANCE 9401040069 940104 S&P FACES CRITICISM IN MORTGAGE AREA BY ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK STANDARD & POOR'S CORP HAS BECOME A TARGET OF CRITICISM BY SOME INVESTORS WHO CONTEND THAT IT HAS SOFTENED ITS CRITERIA FOR MORTGAGEBACKED SECURITIES TO WIN BACK CLIENTS S&P A UNIT OF MCGRAWHILL INC STRONGLY DENIES THIS CLAIM HOWEVER THERE ALSO ARE SIGNS THAT OTHER RATERS SUCH AS MOODY'S INVESTORS SERVICE INC HAVE ALTERED CRITERIA FOR RATING CERTAIN SECURITIES BACKED BY JUMBOSIZED MORTGAGES A BOOMING 158 BILLION MARKET SECTOR MOODY'S A UNIT OF DUN & BRADSTREET CORP SAYS IT HASN'T FORMALLY CHANGED ITS CRITERIA ALTHOUGH AS A MATTER OF POLICY IT DOESN'T OFFER RATINGS EXPLANATIONS UNTIL IT HAS BECOME COMFORTABLE WITH NEW APPROACHES SAYS DONALD SELZER AN ASSOCIATE DIRECTOR AT STAKE ARE THE LUCRATIVE FEES RATING AGENCIES RECEIVE WHEN THEY ISSUE RATINGS OF SUCH SECURITIES ALL FOUR MAJOR RATING AGENCIES S&P MOODY'S FITCH INVESTORS SERVICE INC AND DUFF & PHELPS CO WANT A SHARE OF THE BUSINESS ALL ARE STRUGGLING TO DIFFERENTIATE THEMSELVES TO GET IT IT'S SOMETHING THAT REALLY MAKES ME NERVOUS SAYS ROBERT IVES A PORTFOLIO MANAGER WITH FIDELITY INVESTMENTS IT DOES SEEM OVER THE LAST 12 MONTHS IN PARTICULAR THE RATING AGENCIES SEEM TO BE BECOMING MORE AND MORE AGGRESSIVE IN HOW THEY LOOK AT ANY STRUCTURED MORTGAGE PRODUCTS INVESTORS QUESTION S&P'S NEW STANDARDS BECAUSE OFTEN THEY LEAVE INVESTORS WITH LESS PROTECTION AGAINST FORECLOSURE OF MORTGAGES BACKING PRIVATELABEL DEALS PRIVATELABEL ISSUES ARE OFFERED BY MARKET PLAYERS OTHER THAN GOVERNMENTSPONSORED ENTERPRISES SUCH AS THE FEDERAL NATIONAL MORTGAGE ASSOCIATION S&P ADJUSTED ITS RATINGS CRITERIA AS OF DEC 1 ALLOWING SEVERAL DEALS TO MAINTAIN THE SAME RATING AS UNDER THE OLD CRITERIA WITH ON AVERAGE 30 LESS CREDIT SUPPORT FOR A MORTGAGEBACKED SECURITY CREDIT SUPPORT CAN TAKE SEVERAL FORMS INCLUDING BOND INSURANCE AND SUBORDINATE SECURITIES LOWER SUPPORT LEVELS MAKE IT CHEAPER FOR COMPANIES TO ISSUE PRIVATELABEL BONDS BUT LEAVE INVESTORS WITH A THINNER CUSHION SHOULD THE LOANS RUN INTO TROUBLE AS MUCH AS WE DO OUR OWN UNDERWRITING WE STILL RELY ON THE RATING AGENCIES TO PROVIDE GOOD SOLID INFORMATION AND AN OBJECTIVE VIEWPOINT AS TO WHERE THINGS ARE GOING SAYS EDWARD TOY A PORTFOLIO MANAGER AT TEACHERS INSURANCE & ANNUITY ASSOCIATIONCOLLEGE RETIREMENT EQUITIES FUND TO THE EXTENT THEY THEMSELVES ARE COMPETING FOR BUSINESS THEY LOSE CREDIBILITY S&P OFFICIALS SAY THE CRITERIA CHANGES HAVE BEEN IN THE WORKS FOR MONTHS AND AREN'T RELATED TO ANY THREAT TO ITS MARKET SHARE THEY ADD THAT SOME OF THEIR STANDARDS REMAIN TOUGHER THAN THOSE OF COMPETITORS AND HAVE RESULTED IN LOST BUSINESS I DON'T KNOW IF THE CRITERIA CHANGE HAS GOTTEN US ANY MORE BUSINESS SAYS JAYME LAURASH A DIRECTOR AT S&P WHAT IT HAS DONE IS IT HAS HELPED US EXPLAIN AND RATIONALIZE OUR NUMBERS A LITTLE BIT BETTER WHICH IS WHAT WE NEEDED WE HOPE WE GET MORE BUSINESS BUT NOT JUST BECAUSE THE NUMBERS ARE LOWER MOODY'S MEANWHILE IS BEING ATTACKED BY COMPETITORS WHO CHARGE IT WITH SNAGGING BUSINESS BY LOWERING CREDITSUPPORT STANDARDS OFFICIALS OF RIVAL FIRMS WHO WOULDN'T BE NAMED SAY THE TACTIC HAS PULLED SOME ISSUERS MOODY'S WAY THE LOWER SUPPORT LEVELS AREN'T EVIDENT TO MOST INVESTORS WHO OFTEN DON'T KNOW EXACTLY HOW A RATING IS ARRIVED AT GENERALLY MOODY'S ACCEPTS LESS CREDIT SUPPORT FOR MORTGAGEBACKED SECURITIES AND OTHER STRUCTURED TYPES OF TRANSACTIONS WITH EQUITYLIKE PROPERTIES MR SELZER SAYS THAT'S BECAUSE MORTGAGE SECURITIES ARE BACKED BY INDIVIDUAL PAYMENTS UNLIKE STRAIGHT CORPORATE DEBT WHICH REPRESENTS A COMPANY'S OBLIGATION AND ABILITY TO PAY INVESTORS IN DEFAULTED MORTGAGEBACKED SECURITIES WILL LOSE AT MOST 20 OF THEIR INVESTMENT COMPARED TO AN AVERAGE 60 LOSS TO A CORPORATE BOND INVESTOR WE ARE WILLING TO ACCEPT HIGHER LEVELS OF DEFAULT ON STRUCTURED DEALS BECAUSE THE AMOUNT OF LOSSES ARE LOWER MR SELZER SAYS TEACHERS INSURANCE'S MR TOY SAYS IF NEW CRITERIA PUT OUT BY S&P OR BY ANY OTHER RATING AGENCY DON'T MEET HIS FUND'S STANDARDS THE PENSION FUND MAY STIPULATE ITS OWN CREDIT LEVELS AND PUT THE AGENCY RATINGS ON THE SHELF TEACHERS IS THE LARGEST PENSION FUND IN THE WORLD WITH 125 BILLION IN ASSETS TO THE EXTENT THIS RESULTS IN A LOWER CREDITENHANCEMENT LEVEL TEACHERS INSURANCE WILL PROBABLY START DEMANDING HIGHER YIELDS ON THE SECURITIES IT PURCHASES MR TOY SAYS IF IT MEANS WE START PASSING ON SOME DEALS SO BE IT HE ADDS SMALLER INVESTORS CAN'T BE SO DISMISSIVE MOST DON'T HAVE THE EXTENSIVE RESEARCH STAFFS MAINTAINED BY LARGER INVESTMENT FIRMS AND SO RELY ON AGENCY ANALYSIS CRITICS DON'T QUIBBLE WITH S&P'S RESEARCH AND DON'T SINGLE THE AGENCY OUT BUT THEY STILL QUESTION TO WHAT EXTENT COMPETITION IS DRIVING ITS ACTIONS I CAN TELL YOU I'M VERY SKEPTICAL OF ANY REDUCTION IN CREDIT ENHANCEMENT SAYS A MONEY MANAGER AT AN INSURER IT STRIKES ME AS A PURE COMPETITIVE MOVE YES I DO KNOW DELINQUENCIES ARE AT THE LOWEST POINT THEY'VE BEEN IN THIS CYCLE THAT JUST TELLS ME THEY ARE LIKELY TO INCREASE NOT ALL INVESTORS ARE DISPLEASED WITH THE CHANGES BEING MADE BY RATERS DEBORAH CUNNINGHAM A MONEY MANAGER WITH FEDERATED INVESTORS INC IN PITTSBURGH SAYS SHE PREFERS COMPETITION TO THE PREVIOUS NEARMONOPOLY OF MOST EVERY FIXEDINCOME SECTOR BY S&P AND MOODY'S PRIVATELABEL MORTGAGEBACKED SECURITIES ARE BACKED BY THE PAYMENT STREAMS OF MORTGAGES THAT EXCEED THE 203150 SIZE LIMIT SET BY THE FEDERAL HOME LOAN MORTGAGE CORP AND THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE SECTOR IS BOOMING WITH VOLUME BY DEC 17 AT 158 BILLION HAVING OUTPACED THE 814 BILLION REACHED IN 1992 ACCORDING TO THE NEWSLETTER INSIDE MORTGAGE SECURITIES UNDER S&P'S NEW CRITERIA MORTGAGE POOLS BACKED BY LOANS WITH LOWER BALANCES REQUIRE LESS CREDIT SUPPORT AND POOLS BACKED BY LARGER BALANCES REQUIRE MORE THE CUTOFF IS 400000 LOANS BELOW 400000 ARE EXPECTED TO HAVE THE SAME FREQUENCY OF FORECLOSURES S&P MULTIPLIES A BASE EXPECTED FORECLOSURE RATE OF 10 BY 12 FOR LOANS OF 400000 TO 600000 BY 16 FOR LOANS OF 600000 TO 1 MILLION AND BY THREE FOR LOANS ABOVE 1 MILLION THE PREVIOUS SCHEME WAS BASED ON A COMPLEX GRID THAT DEPENDED UPON LOANTOVALUE RATIOS AND THE LOAN BALANCE FOR LOANS ABOVE 300000 S&P'S STUDY PROVED THAT LTV RATIOS WHICH REFLECT HOW MUCH A BUYER PUT DOWN AS A DOWNPAYMENT HAVE LITTLE EFFECT ON FORECLOSURE RATES FOR BIGGER LOANS THE CHANGES HAVE HAD A BIG IMPACT SO FAR SAYS THOMAS GILLIS MANAGING DIRECTOR AT S&P IN DECEMBER THE RATER HAS MOSTLY SEEN POOLS WITH LOAN BALANCES OF 200000 TO 600000 SO THOSE POOLS HAVE BEEN COMING DOWN AN AVERAGE OF 30 IN LOSS COVERAGE LEVELS MR GILLIS SAYS THE CREDIT SUPPORT FOR POOLS WITH HIGHER LOAN BALANCES WILL LIKELY RISE FROM PREVIOUS LEVELS HE SAYS 9401040067 940104 BUSINESS BRIEF REYNOLDS METALS CO SOME OUTPUT WILL BE CUT RESULTING IN LOSS OF 800 JOBS REYNOLDS METALS CO RICHMOND VA SAID IT WILL END PART OF ITS ALUMINUM SHEET PRODUCTION AT ITS MCCOOK ILL FACILITY CUTTING 800 OF THE PLANT'S 1200 WORKERS THE MOVE EXPECTED TO BE COMPLETED BY THE END OF APRIL IS PART OF A RESTRUCTURING ANNOUNCED BY REYNOLDS LAST MONTH TO CUT COSTS TO COMBAT A WORLDWIDE ALUMINUM GLUT THE COMPANY ESTIMATES THE RESTRUCTURING WILL RESULT IN AN AFTERTAX CHARGE OF 200 MILLION TO 225 MILLION OR 335 TO 375 A SHARE IN THE FOURTH QUARTER IN THE YEAREARLIER PERIOD REYNOLDS POSTED A LOSS OF 1521 MILLION OR 255 A SHARE WHICH INCLUDED A NONRECURRING CHARGE OF 155 MILLION WE ARE PHASING OUT CERTAIN PRODUCTS AT MCCOOK INVOLVING MOSTLY COMMON ALLOY SHEET BECAUSE OF A COMBINATION OF FACTORS THAT INCLUDES EXCESS CAPACITY IN THE ALUMINUM ROLLING INDUSTRY WEAK DEMAND IN CERTAIN OVERSEAS MARKETS AND DETERIORATING MARGINS C STEPHEN THOMAS VICE PRESIDENT AND GENERAL MANAGER OF THE REYNOLDS MILL PRODUCTS DIVISION SAID REYNOLDS THE WORLD'S THIRD BIGGEST ALUMINUM MAKER EMPLOYS 30000 PEOPLE 9401040066 940104 NOTABLE & QUOTABLE DAVID BRINKLEY OF ABC NEWS WRITING IN THE JAN 3 ISSUE OF NEWSWEEK ON AMERICA IN THE 1940S UNDER PRESSURE OF WAR THE WITHHOLDING TAX WAS BORN IT IS DOUBTFUL THAT WITHOUT WAR CONGRESS WOULD EVER HAVE VOTED FOR A TAX SO INTRUSIVE AND TROUBLESOME BECAUSE OF THE WITHHOLDING TAX THE TERM TAKEHOME PAY ENTERED THE LANGUAGE HAD PEOPLE BEEN FORCED TO COUNT OUT THEIR TAXES IN HARD CASH FOR SOME GOVERNMENT COLLECTOR TAXES IN SUCH STRATOSPHERIC AMOUNTS ALMOST CERTAINLY COULD NOT HAVE BEEN COLLECTED THE COST OF THE WAR WAS SO HIGH THAT THE TOP RATE EVENTUALLY WENT TO ABOUT 92 IT WAS EXPLAINED TO ROOSEVELT THAT HIS RICH ENEMIES WOULD BE SOAKED EVEN FLEECED BEYOND THEIR DEEPEST FEARS THEY PAID THE 92 HATED IT BUT COULD NOT ESCAPE IT MADE ROOSEVELT SO HAPPY PRESS SECRETARY STEVE EARLY TOLD ME THAT ONCE OR TWICE HE SAW THE PRESIDENT SPEND HOURS PORING OVER RECORDS SENT TO HIM FROM THE IRS SHOWING WHO PAID HOW MUCH AS FOR ROOSEVELT'S OWN FINANCES ALL THAT WAS EVER KNOWN WAS THAT HIS MOTHER SARA DELANO ROOSEVELT UNTIL SHE DIED IN 1941 EVERY MONTH OR SO HANDED HIM CASH IN A SEALED ENVELOPE MEMBERS OF CONGRESS WERE SO HAPPY TO FIND THEY NOW HAD A NIAGARA OF MONEY FLOODING INTO WASHINGTON ALL READY FOR THEM TO SPEND EVEN WHEN THE WAR WAS LONG OVER THERE WAS NEVER ANY THOUGHT OF ENDING THE WITHHOLDING TAX THEY HELD THE TOP RATE AT ABOUT 70 FOR ANOTHER 16 YEARS DID THE ENORMOUS TAX RATES PAY THE COST OF THE WAR NO DID THE GOVERNMENT RUN THE WAR ON CREDIT AND LEAVE BILLIONS IN DEBT YES 9401040065 940104 PROVIDENCE HEALTH RESCINDS TRANSACTION WITH NUMED HOME BEREA OHIO PROVIDENCE HEALTH CARE INC SAID IT RESCINDED A STOCK AND CASH PURCHASE TRANSACTION WITH NUMED HOME HEALTH CARE INC IN THE SEPTEMBER TRANSACTION PROVIDENCE ISSUED 925000 COMMON SHARES AND PAID 375000 TO NUMED IN EXCHANGE FOR 3350500 SHARES OR 40 OF NUMED COMMON STOCK PROVIDENCE ALSO PAID NUMED 125000 FOR A WARRANT ENTITLING IT TO BUY 101 OF NUMED'S SHARES FOR 175 A SHARE THE MOVE COMES IN THE WAKE OF A PROXY FIGHT WHICH ENDED WHEN PROVIDENCE AGREED TO PUT ITSELF UP FOR SALE AS PART OF AN AGREEMENT WITH AN INVESTOR GROUP THAT WANTED TO REPLACE THE BOARD THE STRUGGLE BEGAN IN AUGUST WHEN COMMONWEALTH ASSOCIATES A NEW YORK INVESTMENT BANK THAT TOOK PROVIDENCE PUBLIC IN FEBRUARY 1992 FILED ITS INTENT TO SOLICIT PROXIES COMMONWEALTH HAD FILED A MOTION TO BAR NUMED IN INDEPENDENCE OHIO FROM VOTING SHARES IT ACQUIRED IN THE SEPTEMBER TRANSACTION ALLEGING BREACH OF FIDUCIARY DUTY IN THE TRANSACTION THE DELAWARE CHANCERY COURT ISSUED A PRELIMINARY INJUNCTION CITING A SUBSTANTIAL LIKELIHOOD THAT COMMONWEALTH COULD PROVE PROVIDENCE'S PRIMARY MOTIVE FOR THE NUMED TRANSACTION WAS TO WIN THE PROXY FIGHT PROVIDENCE SAID THE RESCISSION REDUCES THE NUMBER OF THE COMPANY'S OUTSTANDING SHARES TO 3699000 FROM 4624000 AS PART OF THE CANCELLED TRANSACTION AND IN SETTLEMENT OF RELATED LITIGATION THE COMPANY ALSO SAID IT PAID NUMED 13 MILLION 9401040064 940104 WHO'S NEWS LESLIE FAY'S FEINBERG RESIGNS AS CHAIRMAN OF THEO MILES UNIT NEW YORK LEONARD FEINBERG HAS RESIGNED AS CHAIRMAN OF LESLIE FAY COS'S THEO MILES KNIT GROUP UNIT FORMERLY KNOWN AS THE OUTLANDER MR FEINBERG'S DEPARTURE COMES AT A TIME WHEN THE COMPANY WAS RECENTLY GRANTED AN EXTENSION TO FEB 16 TO FILE FOR A PLAN OF REORGANIZATION THE WOMEN'S APPAREL MAKER CURRENTLY OPERATES UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE A SPOKESMAN FOR LESLIE FAY SAID THE COMPANY HAS BEEN STREAMLINING THE ORGANIZATION TO MAKE IT MORE COMPETITIVE MR FEINBERG THE SPOKESMAN SAID WAS OFFERED A POSITION WITH RESPONSIBILITIES THAT APPARENTLY WEREN'T SATISFACTORY MR FEINBERG 41 YEARS OLD SAID HE WILL JOIN PAT ARGENTI CHAIRMAN OF NEW YORKBASED INDEPENDENT APPAREL MAKER PATRICK GROUP TO FORM A KNITWEAR DIVISION OF THE COMPANY CALLED NINA PATRICK 9401040063 940104 BUSINESS BRIEF COX ENTERPRISES INC COX CABLE TO BUY CONVERTERS FROM GENERAL INSTRUMENT COX CABLE COMMUNICATIONS AGREED TO PURCHASE 200000 DIGITAL TELEVISION SETTOP CONVERTERS FROM GENERAL INSTRUMENT CORP FOR ABOUT 40 MILLION COX CABLE IS A UNIT OF COX ENTERPRISES INC A MEDIA COMPANY IN ATLANTA GENERAL INSTRUMENT SAID DELIVERIES OF THE DIGICABLE CONVERTERS WILL BEGIN AT THE END OF 1994 COX CABLE WITH 18 MILLION CUSTOMERS WILL INSTALL THE NEW UNITS THROUGHOUT ITS CABLE TELEVISION SYSTEM 9401040062 940104 RAWSTEEL OUTPUT ROSE 11 IN THE LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS IN THE WEEK ENDED JAN 1 INCREASED 11 TO 1864000 TONS FROM 1843000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 98 FROM THE 1698000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 886 OF ITS CAPABILITY LAST WEEK COMPARED WITH 876 THE PREVIOUS WEEK AND 788 A YEAR EARLIER IN ADDITION IN THE WEEK ENDED DEC 25 RAWSTEEL PRODUCTION DECREASED 02 FROM 1847000 TONS IN THE PREVIOUS WEEK ACCORDING TO AISI OUTPUT IN THAT WEEK ROSE 98 FROM THE 1678000 TONS PRODUCED A YEAR EARLIER THE CAPABILITYUTILIZATION RATE IN THE WEEK COMPARED WITH 878 THE PREVIOUS WEEK AND 776 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITYUTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9401040061 940104 CRANE CO ACQUIRES A 132 POSITION IN MARK CONTROLS BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL CRANE CO A STAMFORD CONN MAKER OF ENGINEERED PRODUCTS FOR AEROSPACE AND CONSTRUCTION COMPANIES SAID IT ACQUIRED A 132 STAKE IN MARK CONTROLS CORP FOR 59 MILLION AND MAY SEEK REPRESENTATION ON THE SKOKIE ILL COMPANY'S BOARD IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION CRANE SAID IT SHOULDN'T BE CONSIDERED A PASSIVE INVESTOR IN THE ILLINOIS MAKER OF VALVES AND INSTRUMENT CONTROLS CRANE WHICH BEGAN ACCUMULATING MARK CONTROLS SHARES LAST SPRING SAID IT MAY ACQUIRE MORE STOCK BUT ADDED THAT IT HASN'T COME UP WITH A SPECIFIC PLAN FOR ACQUIRING CONTROL THE NEWS HELPED PUSH MARK CONTROLS' STOCK UP 2875 TO 1175 IN LATE NASDAQ TRADING ON THE NEW YORK STOCK EXCHANGE CRANE ROSE 625 CENTS TO 25375 CRANE'S INTEREST IN MARK CONTROLS WHICH IS HEADED BY WILLIAM E BENDIX COMES AFTER THE ILLINOIS COMPANY LAST SPRING REJECTED TWO BIDS BY AN INVESTOR GROUP AT 965 AND 908 A SHARE THAT GROUP LED BY EUCALYPTUS INVESTMENT LTD AN INVESTMENT VEHICLE FOR A WEALTHY HONG KONG FAMILY LATE LAST MONTH ABANDONED A FIGHT TO EXPAND MARK CONTROLS' BOARD WITH THREE OF ITS OWN CANDIDATES AT THAT TIME EUCALYPTUS SOLD ITS 92 STAKE IN THE COMPANY CRANE CHIEF FINANCIAL OFFICER JEREMIAH P CRONIN SAID CRANE BOUGHT THAT STAKE A BLOCK OF 450510 SHARES IN THE OPEN MARKET THUS BOOSTING ITS INTEREST TO 132 MR BENDIX MARK CONTROLS' PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY IS NOT FOR SALE AND IS NOT BEING SHOPPED ADDING THAT HE HASN'T HAD ANY DISCUSSIONS WITH CRANE EXECUTIVES HE SAID THE COMPANY WOULD CONSIDER OFFERS THAT ARE OF INTEREST TO SHAREHOLDERS ANALYSTS SAID THAT CRANE WHICH HAD 1992 SALES OF 13 BILLION MAY HAVE A BATTLE ON ITS HANDS IF IT PLANS TO BUY MARK CONTROLS WHICH HAD 1992 SALES OF 862 MILLION THEY'RE GETTING THEMSELVES INTO A FIGHT THAT'S FAIRLY SURE LEHMAN BROTHERS ANALYST SIDNEY HELLER SAID MARK CONTROLS JUST CHASED AWAY A FINANCIAL BUYER MARK CONTROLS' MR BENDIX SAID HE PLANS TO CONTINUE GROWING THE COMPANY BOTH INTERNALLY AND THROUGH ACQUISITIONS WE BELIEVE WE HAVE A GOOD SOLID LONGTERM PLAN HE SAID AMONG OTHER PRODUCTS BOTH COMPANIES MAKE INDUSTRIAL VALVES MR HELLER SAID CRANE HAD PREVIOUSLY SAID IT WANTS TO BUILD ITS VALVE BUSINESS AND HE SAID A PURCHASE OF MARK CONTROLS IS ONE WAY TO ACHIEVE THAT GOAL IN ITS SEC FILING CRANE SAID IT MAY SEEK BOARD REPRESENTATION THROUGH A PROXY FIGHT BY MAKING A TENDER OR EXCHANGE OFFER FOR SOME OR ALL OF MARK CONTROLS' COMMON STOCK OR BY PROPOSING A BUSINESS COMBINATION CRANE ALSO SAID IT MAY SEEK TO JUDICIALLY INVALIDATE MARK CONTROLS' SERIES A STOCK PURCHASE RIGHTS WHICH BECOME EXERCISEABLE IF AN ENTITY BUYS MORE THAN 15 OF THE COMPANY 9401040060 940104 MOVABLE FEASTS MORE PEOPLE DINE AND DRIVE BY KATHLEEN DEVENY STAFF REPORTER OF THE WALL STREET JOURNAL FORGET ABOUT FAT OR CHOLESTEROL THE GREATEST HAZARD AT MEALTIME THESE DAYS MAY BE ONCOMING TRAFFIC PRESSED FOR TIME OR SIMPLY CRAVING PRIVACY MORE PEOPLE ARE EATING MEALS IN THEIR CARS OFTEN WHILE DRIVING THIS YEAR ONE OF EVERY 10 MEALS PURCHASED IN A RESTAURANT WILL BE CONSUMED IN A CAR ACCORDING TO HARRY BALZER A VICE PRESIDENT OF NPD GROUP A CHICAGO COMPANY THAT TRACKS PEOPLE'S EATING HABITS THAT'S UP ABOUT 25 FROM 1985 MR BALZER SAYS GARY STIBEL A PRINCIPAL WITH NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN THINKS THE FIGURE IS EVEN HIGHER WHEN SNACKS FROM CONVENIENCE STORES ARE INCLUDED HE SAYS THE INCIDENCE OF EATING AND DRIVING MAY BE AS HIGH AS ONE IN SIX MEALS CONSUMERS ARE VERY PROUD WHEN THEY USE TIME MORE EFFICIENTLY HE SAYS LONGER COMMUTES COUPLED WITH THE GROWING AVAILABILITY OF FASTFOOD DRIVETHROUGHS HAVE SPAWNED A NEW BREED OF MOTORIST WHO HOIST A HOT DOG OR HAMBURGER IN ONE HAND AND DRIVE WITH THE OTHER BILL EDWARDS 36 YEARS OLD IS ONE OF THEM AS PRESIDENT OF A SMALL CHICAGO COMPANY THAT SELLS CHEMICAL STORAGE SYSTEMS HE DRIVES 40000 MILES A YEAR TO VISIT PROSPECTIVE CUSTOMERS ON A STRAIGHTAWAY MR EDWARDS SAYS HE CAN EAT TALK ON THE PHONE AND TAKE NOTES WHILE DRIVING I DON'T WANT TO LOSE TIME AND THE FOOD USUALLY ISN'T WORTH STOPPING FOR HE SAYS BUT MY TIES ARE ALWAYS A DISASTER SOME FOOD MARKETERS HAVE STARTED PITCHING PRODUCTS TO CONSUMERS LIKE MR EDWARDS A COMMERCIAL FOR KELLOGG CO'S NUTRIGRAIN CEREAL BARS FOR EXAMPLE FEATURES THE MEMBERS OF A CAR POOL BECOMING IRRITABLE WHEN THEY REALIZE THEY DON'T HAVE TIME TO STOP FOR BREAKFAST THE LAST MAN ON THE ROUTE SAVES THE MORNING WITH A BOX OF BREAKFAST BARS BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC IS TESTING A NEW POCKETLIKE SANDWICH WRAPPER THAT IS EASIER TO PICK UP AND PUT DOWN A BENEFIT IN STOPANDGO TRAFFIC IN ADDITION TO QUICK FUEL A BURGER BEHIND THE WHEEL CAN PROVIDE RESPITE FROM RESPONSIBILITIES SAYS STEVE BARNETT AN ANTHROPOLOGIST AND PRINCIPAL WITH GLOBAL BUSINESS NETWORK WHICH TRACKS CONSUMER BEHAVIOR MR BARNETT A FORMER DIRECTOR OF PRODUCT PLANNING FOR NISSAN NORTH AMERICA SAYS SOME PEOPLE TODAY GET UPSET IF THEIR COMMUTE IS TOO SHORT BECAUSE IT'S THE ONLY TIME THEY HAVE TO THEMSELVES WORK IS HECTIC HOME IS HECTIC BUT THE CAR IS ALWAYS QUIET HE SAYS SOME BEHAVIORAL EXPERTS SAY THE URGE TO EAT IN THE CAR MAY RUN EVEN DEEPER PEOPLE NEED TO BALANCE SENSORY STIMULATION SAYS MICHAEL T MARSDEN A DEAN AT NORTHERN MICHIGAN UNIVERSITY WHO HAS DONE EXTENSIVE RESEARCH ON CAR CULTURE IN AMERICA WHEN DRIVING A CAR MR MARSDEN SAYS WE BECOME VISUALLY OVERSTIMULATED TO CREATE A SENSE OF EQUILIBRIUM WE STIMULATE OUR OTHER SENSES BY LISTENING TO THE RADIO AND MUNCHING ON SOMETHING THAT'S WHY PEOPLE LIKE TO EAT POPCORN WHILE THEY'RE WATCHING A MOVIE HE SAYS THAT MAKES SENSE TO MIKE VENTOLA 27 A GRADUATE STUDENT AT RUTGERS UNIVERSITY IN NEW JERSEY HIS ONEHOUR COMMUTE FROM BROOKLYN NY OFTEN STRETCHES TO TWO IF TRAFFIC IS CONGESTED BUT SAVING TIME ISN'T HIS MAIN MOTIVATION FOR SNACKING BEHIND THE WHEEL I TRY TO CHOOSE FOOD THAT TAKES A LONG TIME TO EAT BECAUSE IT CALMS ME DOWN HE SAYS TO BROADEN ITS APPEAL AMONG DRIVERS SOUTHLAND CORP OPERATOR OF 7ELEVEN CONVENIENCE STORES AND PERHAPS THE NATION'S LARGEST VENDOR OF CAR CUISINE IS TOYING WITH MORE HEALTHFUL SNACKS INCLUDING A GRILLED BREAST OF CHICKEN SANDWICH SHAPED LIKE A HOT DOG AND A CARFRIENDLY CRUDITE TRAY NOW BEING TESTED IN TEXAS WHICH FEATURES BITESIZED PIECES OF CAULIFLOWER AND BROCCOLI AND A SPILLPROOF RESERVOIR FOR SALAD DRESSING THE COMPANY IS ALSO TRYING TO PUSH FRESH FRUIT AND HAS FOUND THAT ITS CARRYOUT CLIENTELE FAVORS EASYTOEAT VARIETIES SUCH AS APPLES OR MELON CHUNKS OVER MORE CUMBERSOME ORANGES SOUTHLAND ISN'T ABANDONING ITS JUNKFOOD HERITAGE THE COMPANY ALSO SELLS A HOTDOGLIKE BREAKFAST SAUSAGE AND DREAMS OF CREATING SUCH DESSERTS AS CHEESECAKE ON A STICK THE COMPANY ACKNOWLEDGES THAT FOR MANY CUSTOMERS THE CAR IS A HAVEN FROM GOOD NUTRITION THE CAR IS MY HIDEAWAY CONFESSES KAREN RASKOPF MERCHANDISING COMMUNICATIONS MANAGER FOR SOUTHLAND I CAN GET MYSELF ONE COOKIE GET IN THE CAR AND EAT IT AND I DON'T HAVE TO ANSWER FOR IT EATING BEHIND THE WHEEL CAN BE A PERILOUS HABIT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION DOESN'T CALCULATE THE NUMBER OF ACCIDENTS THAT INVOLVE MEALS BUT ESTIMATES THAT INATTENTIVE BEHAVIOR WHICH INCLUDES EATING AS WELL AS CHATTING ON THE PHONE PLAYED A ROLE IN 7 OF FATAL CAR CRASHES IN 1992 THE MOST RECENT YEAR FOR WHICH STATISTICS ARE AVAILABLE NOT ALL MARKETERS CONSEQUENTLY ARE WILLING TO PITCH THEIR PRODUCTS AS CAR FARE ALTHOUGH DRIVETHROUGH CUSTOMERS NOW ACCOUNT FOR ABOUT 55 OF SALES IN RESTAURANTS WHERE THE SERVICE IS AVAILABLE MCDONALD'S CORP OSTENSIBLY DISCOURAGES EATING AND DRIVING WE DON'T ENCOURAGE PEOPLE TO EAT WHILE THEY ARE DRIVING FOR SAFETY REASONS SAYS A SPOKESMAN FOR THE BURGER CHAIN THERE ARE EXCEPTIONS HOWEVER FRENCH FRIES ARE EMINENTLY EATABLE IN THE CAR THE SPOKESMAN ADDS BECAUSE THEY ONLY REQUIRE TWO FINGERS THE MAKERS OF AUTOMOBILES HAVE BEEN LOATH TO ENCOURAGE BEHINDTHEWHEEL EATING SINCE THE LATE 1980S HOWEVER THEY HAVE LAVISHED ATTENTION ON THE BUILTIN CUPHOLDER CREATING EVER STURDIER MODELS CHRYSLER CORP NOW OFFERS SQUARE DRINK HOLDERS FOR KIDS' JUICE BOXES IN SOME OF ITS MINIVANS AND JUMBOSIZED VERSIONS TO ACCOMMODATE 7ELEVEN'S BIG GULP CUPS BUT CHRYSLER SAYS IT HAS NO PLANS AT THIS POINT TO DEVELOP A TRAY OR ANY OTHER DEVICE THAT MIGHT MAKE EATING AND DRIVING EASIER AND NEATER WE KIND OF DISCOURAGE EATING IN THE CAR SAYS JIM EBEJER CHIEF OF INTERIOR DESIGN FOR ALL VEHICLES AT CHRYSLER THE AUTO MAKERS HAVE TECHNICAL PROBLEMS TO OVERCOME BEFORE THEY CAN DESIGN AN EATING TRAY THE DASHBOARD AREA OF MOST CARS IS ALREADY CROWDED AND THERE ISN'T MUCH ROOM IN THE DOOR EITHER THE ONLY LOGICAL SOLUTION WOULD BE A TRAY THAT WOULD FOLD OUT OF THE CONSOLE BETWEEN THE TWO FRONT SEATS SAYS MR BARNETT THE CONSULTANT WHO ONCE WORKED FOR NISSAN MOREOVER SAFETY RULES PRESCRIBE THAT ALL OBJECTS THAT EXTEND INTO THE MAIN COMPARTMENT OF A VEHICLE MUST BE WHAT MR EBEJER CALLS FRIENDLY ON IMPACT KATHY REINHART WHO LIVES IN CINCINNATI WISHES THE CAR COMPANIES WOULD RELENT SHE SAYS HER 14YEAROLD SON NICK EATS ONE OR TWO FASTFOOD MEALS A WEEK IN THE CAR AS SHE DRIVES HIM HOME FROM BASKETBALL PRACTICE FOR EVERY DROPPED FRENCH FRY OR SPILLED COKE I WONDER WHY COULDN'T THERE BE A TRAY THAT COMES OUT OF THE GLOVE COMPARTMENT SHE SAYS YOU KNOW MAYBE SOMETHING ON HINGES SOME INDUSTRY EXPERTS THINK THE CAR COMPANIES WILL EVENTUALLY COME AROUND TO EQUIPPING CARS FOR MEALTIME EATING IN THE CAR IS A REALITY THAT MANUFACTURERS WON'T IGNORE FOREVER SAYS CHRISTOPHER CEDERGREN A CONSULTANT WITH AUTOPACIFIC GROUP INC TEN YEARS AGO DRINK HOLDERS WERE UNHEARD OF BUT NOW EVERYBODY HAS THEM MR CEDERGREN SAYS THE NEXT STEP WILL BE MAKING SOME PLACE TO PUT FOOD 9401040059 940104 BUSINESS BRIEF PHYSICIAN COMPUTER NETWORK INC WALLABY SOFTWARE PURCHASE TO ENHANCE CUSTOMER BASE PHYSICIAN COMPUTER NETWORK INC SAID IT PURCHASED WALLABY SOFTWARE CORP MAHWAH NJ AND RAISED AN ADDITIONAL 17 MILLION IN FINANCING TERMS OF THE ACQUISITIONS WEREN'T DISCLOSED WITH THE PURCHASE OF WALLABY THE LAURENCE HARBOR NJ COMPANY WILL NEARLY TRIPLE ITS CUSTOMER BASE WALLABY SELLS INFORMATION SYSTEMS TO DOCTORS' OFFICES PHYSICIAN COMPUTER OPERATES A NATIONAL COMPUTER NETWORK LINKING DOCTORS' OFFICES WITH HOSPITALS LABS INSURANCE COMPANIES AND OTHERS PHYSICIAN COMPUTER NETWORK ADDED THAT JEFFRY M PICOWER THE COMPANY'S MAJORITY SHAREHOLDER WOULD PROVIDE FINANCING OF UP TO 17 MILLION ALSO PHYSICIAN COMPUTER SAID IT AGREED WITH A INTERNATIONAL BUSINESS MACHINES CORP'S UNIT TO ELIMINATE ABOUT 18 MILLION IN LIABILITIES BY CONVERTING PREFERRED HOLDINGS AND DEBT INTO COMMON STOCK IN HEAVY TRADING ON THE NASDAQ STOCK MARKET PHYSICIAN COMPUTER NETWORK GAINED 125 CENTS TO 525 9401040058 940104 LEISURE & ARTS BOOKSHELF MAGIC RECAPTURED BY EDWARD HOWER THERE WAS AN INCANDESCENT MAGIC IN LOUISE ERDRICH'S PRIZEWINNING FIRST NOVEL LOVE MEDICINE IT DIMMED A LITTLE I THOUGHT IN HER SECOND BOOK BEET QUEEN AND WENT OUT IN HER NEXT ONE TRACKS BUT IN HER NEW NOVEL BINGO PALACE HARPERCOLLINS 274 PAGES 23 IT'S BACK AS BRIGHT AS EVER HOVERING ABOUT THE CHIPPEWA INDIANS OF SOUTH DAKOTA WHOSE FICTIONAL FAMILIES SHE BEGAN CHRONICLING 10 YEARS AGO IT'S AN ELUSIVE QUALITY IN THESE CHARACTERS' LIVES THIS MAGIC SOME SEE IT AS LUCK THE KIND THAT CAN BE FOUND AT THE BINGO TABLE NOW THAT LEGALIZED GAMBLING IN THE FORM OF AN UGLY CINDERBLOCK PALACE HAS COME TO THE RESERVATION ALONG WITH THE PROMISE OF NEW REVENUE OTHER CHARACTERS SEE IT AS SACRED POWER THAT COMES FROM HONORING THEIR HERITAGE THEY FEAR THAT TURNING ANCIENT BURIAL GROUNDS INTO CASINO PROPERTY WILL ROB THEM OF THE ONLY RELIABLE SOURCE OF STRENGTH AND IDENTITY THEY HAVE LEFT AND THEN THERE ARE SOME LIKE LIPSHA THE NOVEL'S FIRSTPERSON NARRATOR WHO WANT TO HAVE IT BOTH WAYS LIKE MOST OF MS ERDRICH'S CHARACTERS HE FIRST APPEARED IN LOVE MEDICINE WHICH WAS REISSUED IN THE FALL WITH FOUR NEW CHAPTERS HE WAS THE LOST YOUNG MAN WHO TRIED TO KEEP HIS ADOPTED GRANDPARENTS TOGETHER BY FEEDING THEM TURKEY HEARTS IN BINGO PALACE LIPSHA IS STILL LOOKING FOR LOVE MEDICINE BUT NOW HE'S THE ONE WHO NEEDS IT HE HAS FALLEN PASSIONATELY FOR A BEAUTIFUL WOMAN NAMED SHAWNEE WHO IS WINNING TRADITIONAL DANCE COMPETITIONS AND SAVING UP FOR COLLEGE THOUGH BRIGHT AND SENSITIVE LIPSHA LACKS CONFIDENCE AND BELIEVES HE MUST WIN A SOUPEDUP VAN THE BINGO HALL'S GRAND PRIZE IN ORDER TO IMPRESS SHAWNEE WHEN HE TRIES TO USE THE HEALING POWER IN HIS HANDS TO RAISE GAMBLING MONEY HOWEVER HIS EFFORTS BACKFIRE SINCE MAGIC ALWAYS DESERTS PEOPLE WHO USE IT FOR MATERIAL GAIN HE GETS THE VAN BUT NOT THE GIRL WHO WANTS A MORE SPIRITUAL INSPIRATION THAN ANYTHING TURNED OUT BY GENERAL MOTORS THUS BEGINS LIPSHA'S BOOKLONG QUEST TO FIND HIS WAY BACK TO HIS HERITAGE AND THUS HIS WAY INTO SHAWNEE'S HEART HIS RIVAL FOR HER IS HIS WEALTHY UNCLE LYMAN WHOM LIPSHA ACTUALLY ADMIRES EVEN THOUGH I THINK OF HIM AS A BIG BLAND VELVEETA LIPSHA SAYS I AM PROUD I AM RELATED TO THIS RESERVATION'S BIGGEST CHEESE THE FACT IS A TRIBAL GOGETTER HAS TO PASTEURIZE HIMSELF TO PLEASE EVERY TRIBAL FACTION LIPSHA SEES ALL SIDES OF PEOPLE AND ISSUES WHICH MAKES IT IMPOSSIBLE FOR HIM TO HATE HIS RIVAL OR TO DECIDE EITHER FOR OR AGAINST THE EXPANDED CASINO THAT LYMAN WANTS TO BUILD LYMAN THOUGH A WIZARD WITH MONEY KNOWS HE ALSO NEEDS MORE TRADITIONAL KINDS OF MAGIC TO PROTECT HIM AGAINST HIS OWN GREED SUCCESS WRECKS AS MANY PEOPLE AS FAILURE HE SAYS ESPECIALLY INDIANS WE'RE NOT PROGRAMMED FOR IT THE BOOK'S MANY OTHER CHARACTERS WHOSE STORIES ARE TOLD IN ALTERNATING THIRDPERSON CHAPTERS ALSO SEEK SUPERNATURAL GUIDANCE THE BOUNTIFUL ZELDA SHAWNEE'S ADOPTIVE AUNT USES IT TO FIND THE MAN WHOSE LOVE SHE REJECTED MANY YEARS BEFORE SHAWNEE HERSELF REMEMBERING HER FATHER'S EVOCATION OF A BUTTERFLY'S SPIRIT CALLS ON IT TO HELP HER FLUTTER GRACEFULLY THROUGH A SACRED DANCE ROUTINE LIPSHA'S BROTHER GERRY THE LEGENDARY OUTLAW AND SPIRIT OF INDIAN RESISTANCE SUMMONS IT TO MIRACULOUSLY ESCAPE FROM PRISON THE POWER IS PERSONIFIED BY FLEUR A WONDERFULLY MYSTERIOUS OLD SORCERESS WHO SOMETIMES TURNS INTO A BEAR JUNE THE TOUGH CIGARETTESMOKING GHOST OF LIPSHA'S MOTHER PUTS IT INTO THE BINGO CARDS SHE GIVES HER SON THEN SHE VANISHES IN HER CAR A FIREBIRD WHICH LIKE A PHOENIX WILL RISE AGAIN TO HELP HER CHILDREN WHEN THEY MOST NEED IT A MYSTICAL FORCE ALSO ANIMATES LIPSHA'S GRANDFATHER'S CEREMONIAL PIPE WHICH THROUGHOUT THE BOOK PASSES FROM HAND TO HAND CONFISCATED BY WHITE POLICE SOLD TO PAY GAMBLING DEBTS FINALLY REGAINED IN THE SERVICE OF UNSELFISH LOVE LIKE THE CHIPPEWA'S HERITAGE IT IS OFTEN DESECRATED BUT CAN NEVER BE DESTROYED PEOPLE SOMETIMES FIND MAGIC NOT ONLY IN ANCIENT TRADITION OR IN NATURE BUT ALSO IN MACHINES LIKE JUNE'S CAR AND THE VIDEO GAME IN WHICH FLEUR APPEARS TO WARN LYMAN ABOUT SELLING OUT HIS BIRTHRIGHT WHEN LIPSHA IS FEELING SUICIDAL HE FLINGS A BIBLE AT HIS STEREO CAUSING JIMI HENDRIX'S VOICE TO SING OUT LIFE IS BUT A JOKE THE RELIGION LIPSHA FINDS HAS LITTLE TO DO WITH THE BIBLE AND EVERYTHING TO DO WITH EMPATHY AND COMPASSION QUALITIES THAT ALONG WITH A LIVELY SENSE OF HUMOR MS ERDRICH CALLS ON THROUGHOUT BINGO PALACE TO REDEEM HER CHARACTERS' LIVES LIPSHA IS A MAGNIFICENT CREATION DETERMINED VULNERABLE INNOCENT FUNNY A KIND OF SACRED CLOWN OUT OF INDIAN LORE WHO MUST FIRST EXPERIENCE HUMILIATION IN ORDER TO ACHIEVE GREATNESS THE OTHER MEMBERS OF HIS EXTENDED FAMILY ARE ALL VITALLY ALIVE AND ENDEARING TOO FEW AMERICAN AUTHORS WRITE WITH MORE LYRICAL TENDERNESS AND MAGICAL POWER THAN MS ERDRICH DOES IN BINGO PALACE MR HOWER'S LATEST BOOK IS THE POMEGRANATE PRINCESS A COLLECTION OF FOLK TALES FROM INDIA 9401040057 940104 WHO'S NEWS AMERICAN INDEMNITY FINANCIAL CORP AMERICAN INDEMNITY FINANCIAL CORP GALVESTON TEXAS PHILLIP E APGAR 40 YEARS OLD WAS ELECTED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS INSURANCE HOLDING COMPANY MR APGAR FORMERLY VICE PRESIDENT AND CONTROLLER SUCCEEDS SYNOTT L MCNEEL 70 WHO RETIRED IN DECEMBER 9401040056 940104 TECHNOLOGY & MEDICINE WARNERLAMBERT DRUG IS APPROVED FOR EPILEPSY CASES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL MORRIS PLAINS NJ WARNERLAMBERT CO SAID ITS PARKEDAVIS DIVISION RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO SELL ITS ANTICONVULSANT NEURONTIN AS A TREATMENT FOR EPILEPSY THE DRUG IS APPROVED AS AN ADDON THERAPY FOR PATIENTS WHO STILL SUFFER PARTIAL SEIZURES WHILE TAKING OTHER EPILEPSY MEDICATIONS SUCH AS THE MARKET LEADER DILANTIN ALSO MADE BY WARNERLAMBERT ABOUT 20 OF THE MORE THAN 25 MILLION PEOPLE WITH EPILEPSY IN THE US HAVE THIS INCOMPLETELY CONTROLLED FORM OF THE DISEASE ACCORDING TO WARNERLAMBERT NEURONTIN THE COMPANY'S BRAND NAME FOR GABAPENTIN IS UNUSUAL AMONG EPILEPSY DRUGS BECAUSE IT DOESN'T INTERFERE WITH OTHER EPILEPSY MEDICATIONS ACCORDING TO THE FDA THE MARKET FOR ANTIEPILEPSY DRUGS IS SUDDENLY GROWING MORE COMPETITIVE ANOTHER DRUG CARTERWALLACE INC'S FELBATOL BRAND OF FELBAMATE WAS CLEARED AS BOTH A PRIMARY AND ADDON THERAPY LAST SUMMER THE FIRST NEW ANTIEPILEPSY DRUG APPROVED IN 15 YEARS CARTERWALLACE SAID SALES OF FELBATOL HAVE EXCEEDED EXPECTATIONS BUT WOULDN'T BE MORE SPECIFIC FELBATOL SELLS FOR AN AVERAGE WHOLESALE PRICE OF 110 A DAY FOR THE INITIAL DAILY DOSE OF 1200 MILLIGRAMS AND THUS IS SLIGHTLY MORE EXPENSIVE THAN DILANTIN WHICH COSTS LESS THAN 1 A DAY NEURONTIN WILL BE LAUNCHED IN FEBRUARY AT A WHOLESALE PRICE OF 225 A DAY FOR THE INITIAL 900MILLIGRAM DAILY DOSE WARNERLAMBERT SAID NEURONTIN WILL HELP WARNERLAMBERT PROTECT ITS 200MILLIONAYEAR SALES OF ANTIEPILEPSY DRUGS BY GIVING THE COMPANY'S SALESPEOPLE TWO EPILEPSY DRUGS TO TALK ABOUT WITH PHYSICIANS AND MANAGEDCARE ORGANIZATIONS SAID JACK LAMBERTON AN ANALYST AT NATWEST SECURITIES CORP DILANTIN WHICH HAS BEEN USED AS AN EPILEPSY TREATMENT SINCE THE 1930S IS THE MARKET LEADER WITH ABOUT 49 OF TOTAL PRESCRIPTIONS WRITTEN FOR ANTIEPILEPSY DRUGS MR LAMBERTON ESTIMATED THAT NEURONTIN WOULD REACH 100 MILLION A YEAR IN SALES IN FIVE YEARS WARNERLAMBERT IS TESTING NEURONTIN FOR EXPANDED USE AS A FIRSTLINE THERAPY AND IN CHILDREN WARNERLAMBERT SAID NEURONTIN'S SIDE EFFECTS INCLUDE DIZZINESS AND DROWSINESS ALSO THE DRUG'S LABELING MENTIONS THAT AN UNEXPECTED HIGH INCIDENCE OF PANCREATIC ACINAR ADENOCARCINOMAS A TYPE OF CANCER WAS FOUND IN MALE RATS THE LABEL ADDS THAT THE CLINICAL SIGNIFICANCE OF THE FINDING IS UNKNOWN A WARNERLAMBERT SPOKESWOMAN SAID THE TYPE OF PANCREATIC TUMORS FOUND IN THE RATS AREN'T THE SAME TYPE FOUND IN HUMANS AND THEY DIDN'T HAVE AN EFFECT ON THE SURVIVAL OR MORBIDITY OF THE RATS THE RELEVANCE OF THE FINDINGS TO ANY RISK IN HUMANS ISN'T CLEAR SHE SAID 9401040055 940104 BUSINESS BRIEF SOUTHERN PACIFIC RAIL CORP UNIT SAYS 210 EMPLOYEES HAVE ACCEPTED JOB BUYOUTS SOUTHERN PACIFIC LINES A UNIT OF SOUTHERN PACIFIC RAIL CORP SAID 210 TRAINMEN AND SWITCHMEN ACCEPTED JOB BUYOUTS THE COMPANY SAID IT EXPECTS TO SAVE ABOUT 15 MILLION A YEAR ON SALARY AND BENEFITS AS A RESULT OF THE BUYOUTS THE EMPLOYEES ACCEPTED THE BUYOUTS AS PART OF A FOURYEAR LABOR AGREEMENT RATIFIED IN NOVEMBER AS PREVIOUSLY REPORTED THE AGREEMENT CALLED FOR A REDUCTION OF 210 WORKERS WHO WOULD BE OFFERED SEVERANCE PAYMENTS THE COMPANY SAID EACH OF THE EMPLOYEES ACCEPTING THE BUYOUT WILL RECEIVE 73500 IN SEVERANCE PAY SOUTHERN PACIFIC SAID THIS REDUCTION WAS PART OF ITS GOAL TO REDUCE ITS WORK FORCE TO 18000 BY THE END OF 1994 THERE ARE NOW NEARLY 19000 EMPLOYEES 9401040054 940104 POLITICS & POLICY WHITE HOUSE FORMS PANEL TO INVESTIGATE COLD WAR RADIATION TESTS ON HUMANS BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE HURRYING TO RESPOND TO THE PUBLIC'S GROWING ALARM ABOUT COLD WARERA EXPERIMENTS ON HOW RADIATION AFFECTS HUMANS SAID IT HAS FORMED AN INTERAGENCY TASK FORCE ON THE MATTER AT A NEWS BRIEFING WHITE HOUSE COMMUNICATIONS DIRECTOR MARK GEARAN ATTACKED AS INADEQUATE THE RESPONSE OF THE TWO PREVIOUS ADMINISTRATIONS TO A 1986 CONGRESSIONAL REPORT ON THE TESTS WHICH WERE OFTEN CONDUCTED WITHOUT INFORMED CONSENT HE SAID THE CLINTON ADMINISTRATION WILL STEP UP TO THE PLATE BUT HE REMAINED VAGUE ABOUT WHETHER AND HOW PARTICIPANTS IN SUCH TESTS WOULD BE COMPENSATED AND TARA O'TOOLE THE ENERGY DEPARTMENT'S ASSISTANT SECRETARY FOR ENVIRONMENT SAFETY AND HEALTH SAID AT THE BRIEFING THAT SHE EXPECTS THE FEDERAL AGENCIES TO TAKE MONTHS TO COMPLETE THE FIRST STEP OF COMPILING EXISTING DATA ON THE EXPERIMENTS SIMILAR EFFORTS PREVIOUSLY UNDERTAKEN BY THE FEDERAL GOVERNMENT TOOK YEARS TO BEGIN PAYMENTS HEADS OF THE SEVEN FEDERAL AGENCIES PARTICIPATING IN THE TASK FORCE MET YESTERDAY WITH FOLLOWUP STAFFLEVEL INTERAGENCY MEETINGS SET TO OCCUR WEEKLY THE PARTICIPATING AGENCIES ARE THE ENERGY DEPARTMENT THE HEALTH AND HUMAN SERVICES DEPARTMENT THE DEFENSE DEPARTMENT THE JUSTICE DEPARTMENT VETERANS AFFAIRS DEPARTMENT THE OFFICE OF MANAGEMENT AND BUDGET AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE CLINTON ADMINISTRATION'S INVESTIGATION OF THE RADIATION EXPERIMENTS WHICH WERE CONDUCTED BETWEEN THE 1940S AND THE 1970S ON INDIVIDUALS MANY OF WHOM WERE HEALTHY IS AN OUTGROWTH OF ENERGY SECRETARY HAZEL O'LEARY'S PLEDGE LAST MONTH TO RELEASE DATA ON SUCH TESTS CONDUCTED BY THE ENERGY DEPARTMENT OR THE RELATED FEDERAL AGENCIES THAT PRECEDED IT MS O'LEARY HAS SAID SHE WAS PRODDED TO DO SO BY A SERIES OF ARTICLES ON THE TESTS IN THE ALBUQUERQUE NM TRIBUNE AMONG THE TESTS DESCRIBED IN THE 1986 REPORT BY A HOUSE ENERGY SUBCOMMITTEE THEN HEADED BY REP EDWARD MARKEY D MASS WAS A 194647 UNIVERSITY OF ROCHESTER EXPERIMENT IN WHICH SIX PATIENTS WITH GOOD KIDNEY FUNCTION RECEIVED URANIUM INJECTIONS TO DETERMINE WHETHER THEY CAUSED RENAL INJURY IN ANOTHER EXPERIMENT CONDUCTED FROM 1945 TO 1947 18 PATIENTS WHO WERE DIAGNOSED TO HAVE FEWER THAN 10 YEARS TO LIVE WERE INJECTED WITH PLUTONIUM TO MEASURE ITS EFFECT ON THE HUMAN BODY DESPITE THE DIAGNOSES NEARLY A THIRD OF THE PATIENTS LIVED LONGER THAN 20 YEARS THE ENERGY DEPARTMENT HASN'T YET RELEASED ANY NEW INFORMATION ON THE MATTER BUT MS O'LEARY'S STRONG COMMENTS SHE SAID WHAT SHE HAD LEARNED OF THE EXPERIMENTS LEFT HER APPALLED AND SHOCKED AND SUGGESTED POSSIBLY COMPENSATING THE VICTIMS HAVE DRAWN MUCH NOTICE IN ADDITION SEVERAL RESEARCH FACILITIES HAVE SINCE PROVIDED DETAILS ABOUT PREVIOUSLY UNDISCLOSED ETHICALLY QUESTIONABLE GOVERNMENTFUNDED RADIATION EXPERIMENTS ON HUMANS A NEW ENERGY DEPARTMENT TOLLFREE NUMBER SET UP TO GATHER INFORMATION ON SUCH EXPERIMENTS HAS BEEN FLOODED WITH AS MANY AS 10000 CALLS A DAY THOUGH DEPARTMENT OFFICIALS SAY MANY OF THE CALLS ARE FROM CONCERNED CITIZENS WHO ARE THEMSELVES SEEKING INFORMATION ABOUT THE TESTS ALTHOUGH THE CLINTON ADMINISTRATION IS EAGER TO GIVE THE IMPRESSION OF BUSTLING MOVEMENT ON THE ISSUE IT'S UNLIKELY THAT THERE WILL BE QUICK ACTION TO COMPENSATE PEOPLE WHO WERE WRONGLY EXPOSED TO RADIATION IN ADDITION TO THE ARDUOUS PROCESS OF COMPILING INFORMATION ABOUT THE EXPERIMENTS FROM VARIOUS GOVERNMENT AGENCIES THE FEDERAL GOVERNMENT FACES THE DIFFICULTY OF DETERMINING WHETHER INDIVIDUALS WERE PHYSICALLY HARMED BY THE TESTS EVIDENCE THUS FAR SHOWS THAT RESEARCHERS RARELY IF EVER BOTHERED TO CONDUCT FOLLOWUP MEDICAL STUDIES ON PARTICIPANTS IN SUCH TESTS SO SUCH DATA WOULD HAVE TO BE COLLECTED NOW IF THEY DID A VIGOROUS JOB SAYS STEWART UDALL A FORMER INTERIOR SECRETARY WHO NOW REPRESENTS PEOPLE WHO WERE EXPOSED BY THE FEDERAL GOVERNMENT TO RADIATION NECESSARY EPIDEMIOLOGICAL DATA COULD BE COLLECTED IN A MATTER OF MONTHS BUT AN EXISTING PROGRAM TO COMPENSATE RESIDENTS OF THE MARSHALL ISLANDS A FORMER US TERRITORY WHERE NUCLEAR TESTS WERE CONDUCTED IN THE 1950S AND NEARBY ATOLLS TOOK SIX YEARS TO MAKE ITS FIRST PAYMENTS TO INDIVIDUALS THE PROGRAM CREATED BY CONGRESS IN 1985 HAS THUS FAR PAID OUT 9 MILLION TO ROUGHLY 450 PEOPLE WHO CLAIMED INJURY FROM THE TESTS IN INCREMENTS OF 75000 TO 130000 A MORE RECENT FEDERAL PROGRAM TO COMPENSATE US URANIUM MINERS AND PEOPLE LIVING DOWNWIND FROM NUCLEAR TEST SITES PAYS 50000 TO 100000 TO INDIVIDUALS WHO DEMONSTRATE DAMAGE TO THEIR HEALTH ADMINISTRATION OFFICIALS REFUSE TO ESTIMATE HOW MANY PEOPLE MAY HAVE PARTICIPATED IN THE TESTS BUT THE 1986 CONGRESSIONAL STUDY SAID THAT THE ENERGY DEPARTMENT ALONE HAS RECORDS OF 695 PARTICIPANTS 9401040053 940104 WHO'S NEWS NETWORK COMPUTING DEVICES INC NETWORK COMPUTING DEVICES INC MOUNTAIN VIEW CALIF EDWARD L MARINARO 55 YEARS OLD WAS NAMED TO THE BOARD OF THIS COMPUTING DEVICE CONCERN EXPANDING THE BOARD TO SEVEN HE RUNS THE MARINARO GROUP A CONSULTING FIRM 9401040052 940104 BUSINESS BRIEF FLEMING COS ASSETS OF ROYAL FOODS LINE TO BE SOLD TO DI GIORGIO FLEMING COS OKLAHOMA CITY SAID IT SIGNED A LETTER OF INTENT TO SELL MOST OF THE ASSETS OF ITS ROYAL FOODS DAIRY AND DELI PRODUCTS DISTRIBUTION BUSINESS IN WOODBRIDGE NJ TO DI GIORGIO CORP TERMS WEREN'T DISCLOSED FLEMING SAID THE OPERATION TO BE SOLD GENERATED ABOUT 300 MILLION IN REVENUE IN 1993 THE FOOD DISTRIBUTION CONCERN SAID THE SALE WOULD RESULT IN A PRETAX FIRSTQUARTER GAIN OF ABOUT 6 MILLION AND WOULD IMPROVE FLEMING'S RESULTS DI GIORGIO WHICH IS PRIVATELY HELD IS ONE OF THE LARGEST INDEPENDENT FOOD DISTRIBUTORS IN THE NEW YORK METROPOLITAN AREA FLEMING SAID THE SALE IS PART OF ITS STRATEGY TO GET RID OF UNDERPERFORMING BUSINESSES THE TRANSACTION DOESN'T INCLUDE FLEMING'S ROYAL FOODS DISTRIBUTION CENTER IN MARYLAND 9401040051 940104 WHO'S NEWS NATIONAL WESTMINSTER BANK PLC NATIONAL WESTMINSTER BANK PLC LONDON DOROTHY J DOTSON 49 YEARS OLD WAS NAMED HEAD OF THE PRIVATE PLACEMENT GROUP AT NATWEST MARKETS THE NEW YORK CORPORATE AND INVESTMENT BANKING UNIT OF THIS BANK HOLDING COMPANY THE PRIVATE PLACEMENT GROUP IS NEW AND MS DOTSON ALSO WAS NAMED A MANAGING DIRECTOR OF NATWEST MARKETS DALE M HUNT 39 WAS NAMED SENIOR DIRECTOR OF THE GROUP MS DOTSON WAS FORMERLY MANAGING DIRECTOR AND HEAD OF THE PRIVATE PLACEMENT GROUP AT SG WARBURG & CO WHERE MS HUNT WAS VICE PRESIDENT 9401040050 940104 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN TAKE FIVE AND HELP SOMEONE MORE FIRMS GIVE TIME OFF FOR VOLUNTEERING HIBERNIA A NEW ORLEANS BANK COMPANY CREATES A LIST OF CHARITIES FOR EMPLOYEES TO WORK ON FROST BANK IN SAN ANTONIO SETS UP 56 WORKERS TO SERVE AS MENTORS AT A LOCAL ELEMENTARY SCHOOL IT MAY SOON DOUBLE THE PROGRAM'S SIZE MORE THAN 10 OF CAPITAL CITIES/ABC'S 5000 NEW YORK EMPLOYEES WORK WITH CAUSES FROM DELIVERING MEALS TO AIDS PATIENTS TO MAINTAINING THE APPALACHIAN TRAIL GENENTECH IN SOUTH SAN FRANCISCO LAUNCHES A PROGRAM FOR ABOUT 150 SCIENTISTS TO HELP HIGHSCHOOL BIOLOGY TEACHERS STAY UP ON THE LATEST TRENDS CPC INTERNATIONAL AND CAMPBELL SOUP HAVE VOLUNTEER COORDINATORS ON STAFF IN ONE OF THE MORE AMBITIOUS PROGRAMS XEROX GIVES ABOUT A DOZEN WORKERS FULL PAY AND BENEFITS FOR A YEAR TO PURSUE COMMUNITYSERVICE PROJECTS MANY COMPANIES URGE VOLUNTEERISM BUT ON WORKERS' OWN TIME COMPAQ POSTS CHARITY NEEDS ON AN ELECTRONIC BULLETIN BOARD WOULD SHIFTING HEALTH COSTS TO SMALL BUSINESSES HELP WORKERS AFLCIO ECONOMIST JOHN ZALUSKY CONTENDS THE PUBLIC HAS BEEN HOODWINKED INTO THINKING THAT SMALLER COMPANIES ARE THE MOST BENEFICIAL FORCE IN THE ECONOMY IN FACT HE SAYS THEY OFTEN AREN'T COVERED BY FEDERAL SAFETY LAWS WHICH ONLY APPLY TO COMPANIES WITH 11 OR MORE WORKERS OR BY ANTIDISCRIMINATION POLICIES AND OTHER GOVERNMENT SAFEGUARDS MOREOVER THE JOBS THEY CREATE TEND TO BE SERVICE JOBS WITH LOWER PAY AND PERKS MR ZALUSKY SAYS THE CLINTON HEALTH PLAN WOULD FORCE ALL COMPANIES TO PROVIDE HEALTH INSURANCE FOR WORKERS BUT IT WOULD CAP THE COSTS EFFECTIVELY SHIFTING COSTS TO SMALL FIRMS MR ZALUSKY ARGUES THAT SHOULD HELP THE ECONOMY BY GENERATING JOB GROWTH AT BIGGER COMPANIES WHICH PAY BETTER AND ARE SUBJECT TO WORKER PROTECTIONS HE CONCLUDES BIG COMPANIES NEED FAIR AND EQUAL TREATMENT COMPANIES USE TRAINING AND TECHNOLOGY TO SAVE WORKERS' LIVES ON THE ROAD WITH TRAFFIC ACCIDENTS THE LEADING CAUSE OF ONTHEJOB DEATH FIRMS STEP UP PRECAUTIONARY MEASURES ROADWAY EXPRESS UNVEILS THE MILLION MILE CHALLENGE AN INTERACTIVE VIDEO WITH 40 ROAD SCENARIOS ART VAN FURNITURE IN MICHIGAN GIVES DRIVERS DEDICATED RUNS TO KEEP THEM FAMILIAR WITH ROUTES AND TRAFFIC PATTERNS COMMONWEALTH ELECTRIC DRIVERS GO TO SKID SCHOOL MELODY FOODS A SUBURBAN DETROIT DAIRY COMPANY TAKES CARS AWAY FROM SALESMEN WITH POOR SAFETY RECORDS AND OFFERS CASH AND PRIZES TO TRUCKERS WITH NO ACCIDENTS SOUPEDUP CARS AND TRUCKS HELP LEASEWAY TRANSPORTATION IN CLEVELAND PUTS COMPUTERS IN TRUCKS TO MONITOR SPEED HOURS DRIVEN AND HARD BRAKING A LOG FROM THE COMPUTER IS REVIEWED BY SUPERVISORS ROADWAY PUTS SPEED CAPS IN TRUCKS TO KEEP THEM BELOW 60 MILES PER HOUR AUTO CRASHES COST EMPLOYERS NEARLY 55 BILLION A YEAR IN LOST WORK TIME AND MEDICAL AND LEGAL BILLS SAYS THE WASHINGTONBASED NETWORK OF EMPLOYERS FOR TRAFFIC SAFETY GET OUT AND STAY OUT EMPLOYERS SEVERELY CUT DESK SPACE RESUMEWRITING SERVICES AND OUTPLACEMENT COUNSELING PROVIDED TO FIRED EXECUTIVES COOPERS & LYBRAND FINDS THE PERCENTAGE OF COMPANIES PROVIDING DESK SPACE FELL TO 15 LAST YEAR FROM 25 IN 1991 ON THE BRIGHT SIDE NEARLY TWOTHIRDS OF FIRMS ARE PROVIDING HEALTH BENEFITS TO FIRED WORKERS UP FROM 41 IN 1991 BAD FIGURES MANY ACCOUNTING PROFESSIONALS SAW THEIR SALARIES RISE LESS THAN THE INFLATION RATE LAST YEAR SAYS ROMAC & ASSOCIATES BIG LOSERS WERE GENERAL STAFF ACCOUNTANTS WHO ACTUALLY POSTED SALARY LOSSES IN SEVERAL REGIONS OF THE COUNTRY AND SAW A GAIN OF LESS THAN 1 NATIONALLY THE PORTLAND MAINE RECRUITER SAYS LET THE GAMES BEGIN COLLECTIVEBARGAINING PACTS COVERING 21 MILLION WORKERS ARE SET TO EXPIRE OR BE REOPENED THIS YEAR THE LABOR DEPARTMENT SAYS NEARLY TWOTHIRDS OF THE AFFECTED WORKERS ARE IN NONMANUFACTURING INDUSTRIES ESPECIALLY TRANSPORTATION CONSTRUCTION AND RETAIL TRADE STATE GOVERNMENT WORKERS IN FLORIDA ILLINOIS OHIO MICHIGAN AND CONNECTICUT WILL GET NEW CONTRACTS AS WILL SCHOOL DISTRICTS IN LOS ANGELES DETROIT AND PHILADELPHIA THE CRYSTAL BALL SHOWS ASIANS AND HISPANICS LEADING WORKER GROWTH THE BUREAU OF LABOR STATISTICS RELEASES ITS PROJECTIONS FOR 2005 JOBS ARE EXPECTED TO GROW BY 13 A YEAR BETWEEN NOW AND THEN WITH ASIANS AND HISPANICS PARTICULARLY WOMEN MAKING THE FASTEST GAINS THE MEDIAN AGE OF THE LABOR FORCE IS SEEN RISING TO MORE THAN 40 THE HIGHEST SINCE THE 1960S ACCORDING TO DEMOGRAPHIC STATISTICIAN HOWARD FULLERTON JR HOME HEALTH AIDES FOR THE ELDERLY AND HUMANSERVICES WORKERS INCLUDING SOCIAL WORKERS ARE EXPECTED TO LEAD THE LIST OF THE FASTESTGROWING PROFESSIONS OTHER HOT FIELDS COMPUTER ENGINEERS PHYSICAL THERAPISTS PARALEGALS AND SPECIALEDUCATION TEACHERS BUT FORGET ABOUT BEING A FARMER BARTENDER OR PHONE/CABLE INSTALLER THOSE JOBS WILL FADE BLS PREDICTS A TOTAL OF 51 MILLION PEOPLE ARE EXPECTED TO JOIN THE LABOR FORCE BY 2005 WITH A NET GROWTH OF 235 MILLION THE CHECKOFF AT LEAST YOUR COWORKERS WON'T SING TO YOU TEMPFORCE SAYS 18 OF COMPANIES GIVE WORKERS THEIR BIRTHDAYS OFF A NEW NATIONAL ASSOCIATION OF CORPORATE DIRECTORS PANEL WILL SET GUIDELINES FOR HOW COMPANY BOARDS SHOULD EVALUATE CHIEF EXECUTIVES 9401040049 940104 BUSINESS BRIEF GARTNER GROUP INC FIRM ACQUIRES REAL DECISIONS FROM NYNEX FOR 10 MILLION GARTNER GROUP INC SAID IT ACQUIRED REAL DECISIONS CORP AN INFORMATION ANALYSIS COMPANY FROM NYNEX CORP FOR SLIGHTLY MORE THAN 10 MILLION REAL DECISIONS A UNIT OF NYNEX'S WORLDWIDE SERVICES GROUP INC SPECIALIZES IN ANALYZING AND ISSUING REPORTS TO CORPORATE CUSTOMERS ON THEIR DATAPROCESSING AND SOFTWARE OPERATIONS BASED IN DARIEN CONN REAL DECISIONS EMPLOYS 90 PEOPLE OF WHOM 75 WILL BE RETAINED SAID JOHN HALLIGAN GARTNER'S CHIEF FINANCIAL OFFICER GARTNER A STAMFORD CONN RESEARCH FIRM COMPLETED ITS ACQUISITION DEC 31 SEPARATELY GARTNER SAID IT NAMED MAX HOPPER A SENIOR VICE PRESIDENT OF AMR CORP A DIRECTOR INCREASING THE BOARD'S SIZE TO 11 MEMBERS 9401040048 940104 BUSINESS BRIEF AURA SYSTEMS INC COMPANY TO PAY 6 MILLION TO SETTLE CLASSACTION SUITS AURA SYSTEMS INC SAID IT AGREED TO PAY 6 MILLION TO SETTLE VARIOUS CLASSACTION SECURITIES LAWSUITS FILED IN 1992 THE EL SEGUNDO CALIF COMPANY WHICH IS INVOLVED IN MAGNETIC SUSPENSION TECHNOLOGY SCENEPROJECTION HARDWARE AND ADVANCED COMPUTING SYSTEMS SAID 2 MILLION OF THE AMOUNT WILL BE COVERED BY INSURANCE THE SETTLEMENT IS SUBJECT TO COURT APPROVAL AND EXECUTION OF A DEFINITIVE SETTLEMENT PACT NINE LAWSUITS CONSOLIDATED IN FEDERAL COURT IN LOS ANGELES ALLEGED THAT AURA'S STOCK WAS ARTIFICIALLY INFLATED BY FALSE AND MISLEADING STATEMENTS FOR ABOUT TWO YEARS ENDING IN MID1992 TWO ADDITIONAL LAWSUITS MADE SIMILAR CLAIMS HARRY KURTZMAN AURA'S CHIEF EXECUTIVE OFFICER SAID I INTENSELY DISLIKE HAVING TO PAY THIS MUCH TO SETTLE CLAIMS WHICH WE DO NOT BELIEVE HAVE REAL MERIT BUT HE SAID THAT CONTESTING THE CLAIMS IN COURT WOULD BE EXPENSIVE AND RISKY ATTORNEYS FOR THE PLAINTIFFS COULDN'T BE REACHED 9401040047 940104 WHO'S NEWS HARTEHANKS COMMUNICATIONS INC HARTEHANKS COMMUNICATIONS INC SAN ANTONIO JAMES L JOHNSON WAS ELECTED A DIRECTOR OF THIS NEWSPAPER COMPANY EXPANDING THE BOARD TO SEVEN MEMBERS MR JOHNSON 66 YEARS OLD IS A FORMER CHAIRMAN OF GTE CORP 9401040046 940104 BUSINESS BRIEF EUROTUNNEL SA SHARES ROSE 36 ON NEWS THAT CAR FARE IS COMPETITIVE EUROTUNNEL SA SHARES ROSE 36 YESTERDAY FOLLOWING A WEEKEND PRESS REPORT THAT THE CHANNELTUNNEL RATE FOR CARRYING CARS WILL BE COMPETITIVE WITH EXISTING FERRY SERVICES EUROTUNNEL SHARES CLOSED AT 544 FRANCS 921 UP 19 FRANCS ON THE PARIS EXCHANGE THE SUNDAY TIMES OF LONDON REPORTED THAT THE ROUNDTRIP CAR FARE THROUGH THE TUNNEL WHICH LINKS ENGLAND AND FRANCE IS ONLY MARGINALLY HIGHER THAN THE FARE ON THE MUCH SLOWER FERRY SERVICES ACROSS THE CHANNEL THE CHANNELTUNNEL OPERATOR LATER CONFIRMED THAT IT WOULD CHARGE MOTORISTS BETWEEN 160 23672 AND 260 PER TRIP WHEN THE CHUNNEL OPENS IN MAY ALSO HELPING THE SHARES WAS NEWS LAST WEEK THAT FRANCE AND BRITAIN AGREED TO A 10YEAR EXTENSION TO EUROTUNNEL'S OPERATING CONCESSION TO 65 YEARS IN EXCHANGE FOR THE DROPPING OF VARIOUS LEGAL CLAIMS AGAINST THE GOVERNMENTS 9401040045 940104 BUSINESS BRIEF MARTIN MARIETTA CORP GE PACT BOOSTS PURCHASES OF ENGINETHRUST REVERSERS MARTIN MARIETTA CORP HAS BEEN GIVEN A SOLESOURCE CONTRACT VALUED AT 100 MILLION A YEAR TO PROVIDE GENERAL ELECTRIC CO WITH THRUST REVERSERS FOR COMMERCIALAIRCRAFT ENGINES THRUST REVERSERS PROVIDE BRAKING ACTION AS AN AIRLINER PREPARES TO LAND THE LARGER MARKET FOR THRUST REVERSERS IS VALUED AT ABOUT 1 BILLION A YEAR BY MARTIN MARIETTA BASED IN BETHESDA MD PREVIOUSLY THE WORK AWARDED TO MARTIN MARIETTA HAD BEEN PERFORMED BY GENERAL ELECTRIC USING PARTS PURCHASED FROM GRUMMAN CORP AND THE AEROSPACE UNIT OF KAMAN CORP 9401040044 940104 INTERNATIONAL BRIEF SCANDINAVIAN AIRLINES SYSTEM DIVISION SOLD COLOGNE HOTEL TO GERMAN INVESTOR GROUP SCANDINAVIAN SCANDINAVIAN AIRLINES SYSTEM STOCKHOLM SAID ITS INTERNATIONAL HOTELS DIVISION SOLD ITS SAS ROYAL HOTEL TO A GROUP OF PRIVATE GERMAN INVESTORS FINANCIAL DETAILS OF THE TRANSACTION WEREN'T DISCLOSED SAS ACQUIRED THE COLOGNEBASED HOTEL IN 1992 FOLLOWING THE CHANGE IN OWNERSHIP AND NAME CHANGE THE HOTEL WILL BE OPERATED BY THE GERMAN HOTEL GROUP DORINT SAS SAID THE DIVESTMENT CONTINUES A STRING OF SALES BY SAS INTERNATIONAL HOTELS IN RECENT MONTHS HOWEVER IN MOST CASES THE GROUP HAS CONTINUED TO OPERATE THE HOTELS UNDER CONTRACTS REACHED WITH THE NEW OWNERS KURT RITTER PRESIDENT OF SAS INTERNATIONAL HOTELS SAID THE GROUP'S STRATEGY OF OPERATING HOTELS BUT NOT NECESSARILY OWNING THEM REMAINS IN FORCE THIS IS AN EXCEPTION HE SAID WE WILL LEAVE THE COLOGNE MARKET BECAUSE IT IS NOT STRATEGICALLY IMPORTANT TO US 9401040043 940104 MARKETING BRIEF PARAMOUNT COMMUNICATIONS INC PUBLISHING SUBSIDIARY BUYS MARKT & TECHNIK OPERATIONS PARAMOUNT PUBLISHING A UNIT OF PARAMOUNT COMMUNICATIONS INC SAID IT ACQUIRED THE BOOK AND SOFTWARE PUBLISHING OPERATIONS OF MARKT & TECHNIK VERLAG AG A PUBLISHER OF COMPUTER BOOKS SOFTWARE AND MAGAZINES TERMS WEREN'T DISCLOSED MARKT & TECHNIK BASED IN HAAR GERMANY HAS ABOUT 305 MILLION IN REVENUE ANNUALLY FROM ITS BOOK AND SOFTWARE OPERATIONS NEW YORKBASED PARAMOUNT PUBLISHING SAID THE ACQUISITION ITS FIRST IN FOREIGNLANGUAGE PUBLISHING WILL HELP EXPAND THE COMPANY'S EUROPEAN OPERATIONS TO INCLUDE PUBLISHING IN INDIGENOUS LANGUAGES THROUGHOUT THE CONTINENT PARAMOUNT IS THE BIGGEST BOOK PUBLISHER IN THE US WITH TITLES IN CONSUMER EDUCATIONAL REFERENCE AND PROFESSIONAL GENRES MARKT & TECHNIK THE US PUBLISHER SAID WILL EXPAND INTO A GERMAN AND ENGLISH LANGUAGE COMPUTER AND GENERALREFERENCE PUBLISHER PARAMOUNT ALSO PLANS TO EXPLOIT POPULAR US COPYRIGHTS IN COMPUTER BUSINESS AND REFERENCE BOOKS IN GERMANY AND EASTERN EUROPE USING MARKT & TECHNIK'S DISTRIBUTION CHANNELS 9401040042 940104 BUSINESS BRIEF ITT CORP UNIT FORMS JOINT VENTURE TO SELL AUTO PARTS IN KOREA ITT CORP SAID ITS ITT AUTOMOTIVE CORP UNIT FORMED A JOINT VENTURE WITH TWO KOREAN COMPANIES TO SELL ITS ANTILOCKBRAKE SYSTEMS AND OTHER AUTO PARTS IN KOREA ITT SAID THE VENTURE IS EXPECTED TO HAVE 50 MILLION IN SALES FOLLOWING ITS STARTUP SET FOR LATER THIS YEAR ITT AUTOMOTIVE AUBURN HILLS MICH WILL HAVE A 40 STAKE WITH THE REMAINDER SPLIT EVENLY BETWEEN KIA MOTORS CORP AND KIA PRECISION WORKS THE VENTURE MARKS ITT'S ENTRANCE INTO THE KOREAN AUTOPARTS MARKET THE COMPANY SAID THE VENTURE IS EXPECTED TO PRODUCE 90000 ANTILOCKBRAKE AND TRACTIONCONTROL SYSTEMS 500000 FRONTBRAKE CALIPERS AND 500000 PROPORTION BRAKE VALVES ANNUALLY BY 1998 ITT WHICH ALSO HAS INTERESTS IN HOTELS INSURANCE FINANCIAL SERVICES AND TIMBER HAD 217 BILLION IN SALES IN 1992 9401040041 940104 BUSINESS BRIEF ISG INTERNATIONAL SOFTWARE GROUP ACCORD IS SET TO PURCHASE COMPANY IN WALTHAM MASS ISG INTERNATIONAL SOFTWARE GROUP LTD NATICK MASS SAID IT AGREED TO PURCHASE CORTEX CORP A CLOSELY HELD WALTHAM MASS COMPANY FOR 450000 SHARES OF ISG STOCK OR ABOUT 45 MILLION ISG STOCK JUMPED 875 CENTS OR 96 TO CLOSE AT 10 A SHARE IN NASDAQ STOCK MARKET TRADING YESTERDAY BOTH COMPANIES MAKE SOFTWAREDEVELOPMENT PRODUCTS CORTEX EMPLOYS ABOUT 90 PEOPLE AND GENERATES 11 MILLION IN REVENUE ANNUALLY THIS ACQUISITION IS A KEY ELEMENT IN ISG'S BUSINESS GROWTH STRATEGY SAID ARIE GONEN ISG'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER IT WILL TRIPLE ISG'S REVENUES ISG HAD 45 MILLION SHARES OUTSTANDING BEFORE THE ACQUISITION THE PURCHASE SUBJECT TO THE APPROVAL OF BOARDS OF BOTH COMPANIES IS EXPECTED TO BE COMPLETED BY FEB 28 9401040040 940104 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN MORTGAGE CORP 655 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1666 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 655 MILLION OF STRIPPED MORTGAGEBACKED SECURITIES OFFERED BY BEAR STEARNS & CO TRUST 161 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE MATURITY OF 298 YEARS 9401040039 940104 COMMODITIES ORANGEJUICE PRICES SOAR FOLLOWING PREDICTION BY FORECASTER OF A DAMAGING FREEZE IN FLORIDA BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL ORANGEJUICE FUTURES PRICES SOARED AFTER A PRIVATE WEATHER FORECASTING CONCERN PREDICTED A FREEZE THAT IT SAID POTENTIALLY COULD DAMAGE FLORIDA'S ORANGE CROP AT NEW YORK'S COTTON EXCHANGE ORANGE JUICE FOR MARCH DELIVERY WAS UP 85 CENTS TO 11575 A POUND MANY FORECASTERS EXPECT COLD AIR TO MOVE INTO NORTHERN FLORIDA TONIGHT AND EARLY TOMORROW YESTERDAY WEATHER SERVICES CORP A BEDFORD MASSBASED FORECASTING COMPANY PREDICTED A POSSIBLE FREEZE THERE ARE TWO POSSIBILITIES FOR COLD AIR MOVING INTO FLORIDA ONE TONIGHT AND ONE THIS WEEKEND SAID PETER LEAVITT CHIEF EXECUTIVE OFFICER FOR TONIGHT MR LEAVITT SAID HIS FIRM HAS FORECAST TEMPERATURES TO DROP AS LOW AS 27 DEGREES IN NORTHERN AREAS OF THE STATE GENERALLY TEMPERATURES IN THE CITRUSGROWING REGIONS OF FLORIDA NEED TO DROP TO ABOUT 29 DEGREES AND REMAIN THERE FOR A FEW HOURS TO INFLICT ANY DAMAGE ON CITRUS TREES ANALYSTS SAID THE WEATHER SERVICES FORECAST HAD A STRONG IMPACT ON ORANGEJUICE FUTURES PRICES WE SAW AN EXTREME REACTION SAID JUDITH GANES SENIOR ANALYST FOR MERRILL LYNCH THERE'S BASICALLY ONE FORECASTER TALKING ABOUT SHARPLY COLDER TEMPERATURES BUT OTHERS DON'T SEE THE SAME THING AFTER TRADING YESTERDAY THE NATIONAL WEATHER SERVICE RELEASED ITS OWN FORECAST FOR FLORIDA WHICH CALLED FOR A LIGHT FREEZE IN NORTH CENTRAL PORTIONS OF THE STATE AND NEARFREEZING TEMPERATURES IN CENTRAL FLORIDA THE HEART OF CITRUSGROWING TERRITORY BUT NEARFREEZING TEMPERATURES MS GANES SAID WOULDN'T BE SUFFICIENT TO DAMAGE THE ORANGE CROP THE FACT IS THAT THERE ARE CERTAIN SIGNALS YOU LOOK FOR AS TO WHETHER THERE WILL BE A FREEZE OR NOT SHE SAID TO PENETRATE INTO THE DEEP SOUTH YOU NEED ARCTIC AIR TO COME DOWN FROM CANADA BUT YOU DON'T HAVE THAT HERE THIS AIR IS COMING DOWN FROM THE ROCKIES ASIDE FROM TALK OF A FREEZE THE SOCALLED FUNDAMENTAL FACTORS THOSE THAT AFFECT THE SUPPLY AND DEMAND FOR ORANGE JUICE ARE POSITIVE AT THE MOMENT MANY ANALYSTS BELIEVE THERE IS EXPECTATION OF A WEAK BRAZILIAN ORANGE CROP DURING THE 199495 CROP YEAR AND DEMAND FOR ORANGE JUICE AMONG RETAIL CONSUMERS IS STRONG YET MS GANES SAID SHE THINKS THE MARKET MAY HAVE RALLIED TOO QUICKLY ON SPECULATION ABOUT A FROST SPECULATORS WHO JUMPED INTO THE MARKET IN HOPES OF A FREEZE MIGHT BE DISAPPOINTED SHE SAID THERE COULD BE A CORRECTION AT A LATER DATE IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE OIL AND PETROLEUM PRODUCT FUTURES ROSE STRONGLY ON NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS CONSIDERING MOVING UP ITS MARCH MEETING TO ADDRESS WEAK PRICES A SENIOR OPEC SOURCE TOLD THE DOW JONES INTERNATIONAL PETROLEUM REPORT THAT MINISTERS ARE DISCUSSING THE IDEA OF RESCHEDULING THE PLANNED MARCH 25 MEETING TO LATER THIS MONTH OR EARLY FEBRUARY SOME MARKET PARTICIPANTS INTERPRETED THE REPORT TO MEAN OPEC WOULD CONSIDER AN ATTEMPT TO BOOST PRICES BY CUTTING ITS OIL PRODUCTION BUT OTHERS WERE SKEPTICAL SAYING OPEC WAS MERELY TRYING TO TALK UP OIL PRICES WORLD OIL PRICES HAVE SUNK TO FIVEYEAR LOWS AFTER OPEC MINISTERS IN NOVEMBER DECIDED NOT TO CUT OUTPUT ON THE NEW YORK MERCANTILE EXCHANGE CRUDE FOR FEBRUARY DELIVERY ADVANCED 39 CENTS TO 1456 A BARREL PETROLEUM PRODUCT PRICES ROSE ON THE NEWS AS WELL AS ON FORECASTS FOR A SEVERE WINTER STORM AND BELOWNORMAL TEMPERATURES ACROSS MUCH OF THE EASTERN US MEANWHILE NATURAL GAS FUTURES FELL DESPITE NEWS OF THE STORM ON THE MERC GAS FOR FEBRUARY DELIVERY SETTLED 68 CENTS LOWER AT 1929 PER MILLION BRITISH THERMAL UNITS GRAINS & SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS SLIPPED AMID REPORTS THAT FEW FOREIGN CUSTOMERS HAVE ARRANGED TO BUY THE US GRAIN THIS WEEK AT MAJOR EXPORT TERMINALS PRICES WERE INITIALLY DEPRESSED BY SPECULATION THE US AGRICULTURE DEPARTMENT MIGHT ENCOURAGE FARMERS TO EXPAND GRAIN ACREAGE IN ORDER TO HELP REPLENISH STOCKPILES DRAINED BY THE 1993 MIDWEST CROP DISASTER MANY TRADERS LATER DISCOUNTED THE RUMORS THE AGRICULTURE DEPARTMENT HAS ALREADY EASED PLANTING RESTRICTIONS FOR GRAIN FARMERS ENROLLED IN GOVERNMENT PRICE SUPPORT PROGRAMS IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR MARCH DELIVERY FELL 55 CENTS A BUSHEL TO SETTLE AT 37275 A BUSHEL CORN PRICES ROSE SLIGHTLY DESPITE HEAVY SELLING BY FARMERS PRICES WERE SUPPORTED BY EXPECTATIONS THAT THE GOVERNMENT NEXT WEEK WILL TRIM ITS ESTIMATE OF THE CORN CROP HARVESTED IN 1993 THE DEPARTMENT IN NOVEMBER FIGURED EXCESSIVE RAIN AND FLOODING HELPED REDUCE THE SIZE OF THE US CORN CROP BY 31 TO 65 BILLION BUSHELS FROM 948 BILLION BUSHELS IN 1992 FARMER SALES OFTEN SURGE DURING THE FIRST TRADING SESSIONS OF THE YEAR BECAUSE MANY PRODUCERS AVOID SALES LATE IN THE YEAR FOR TAX REASONS 9401040038 940104 BUSINESS BRIEF THOMSON CORP UNIT IS FORMED TO OFFER REALTIME TRADE SERVICES THOMSON CORP TORONTO SAID IT FORMED A UNIT TO PROVIDE REALTIME TRADE CONFIRMATION SERVICES TO ALL THE PARTIES TO SECURITIES TRANSACTIONS P HOWARD EDELSTEIN WHO WAS NAMED PRESIDENT OF THE NEW ELECTRONIC SETTLEMENTS GROUP SAID IT WILL OFFER AN ELECTRONIC NETWORK LINKING SECURITIES DEALERS INSTITUTIONAL INVESTORS AND CUSTODIAL BANKS HE SAID IT COULD REPLACE CURRENT ARRANGEMENTS UNDER WHICH TRANSACTIONS ARE OFTEN CONFIRMED BY A PATCHWORK OF FAXES TELEPHONE CALLS AND INHOUSE ELECTRONIC NETWORKS THAT MAY NOT BE LINKED TO OTHER PARTIES TO A TRANSACTION MR EDELSTEIN PREVIOUSLY WAS VICE PRESIDENT MARKETING OF CATS SOFTWARE INC A RISKMANAGEMENT SOFTWARE COMPANY IN PALO ALTO CALIF THOMSON IS A PUBLISHING INFORMATION AND LEISURETRAVEL COMPANY 9401040037 940104 WHAT'S NEWS WORLDWIDE THE WHITE HOUSE PLEDGED TO INVESTIGATE RADIATION EXPERIMENTS THE ADMINISTRATION RESPONDING TO THE PUBLIC'S ALARM ABOUT COLD WARERA RADIATION TESTS ON HUMANS FORMED AN INTERAGENCY TASK FORCE ON THE MATTER WHITE HOUSE COMMUNICATIONS DIRECTOR GEARAN ATTACKED AS INADEQUATE THE RESPONSE OF TWO PRIOR ADMINISTRATIONS TO A 1986 CONGRESSIONAL REPORT ON THE TESTS OFTEN CONDUCTED WITHOUT INFORMED CONSENT HE WAS VAGUE ABOUT WHETHER PARTICIPANTS IN THE TESTS WOULD BE COMPENSATED THE SEVENAGENCY TASK FORCE CONVENED FOR THE FIRST TIME YESTERDAY WITH FOLLOWUP INTERAGENCY MEETINGS SCHEDULED TO TAKE PLACE WEEKLY ARMED PEASANTS HELD THREE TOWNS IN MEXICO'S SOUTHERN STATE OF CHIAPAS AND THEY FIRED ON SOLDIERS IN A FOURTH THE PEASANTS WHO ARE DEMANDING BETTER TREATMENT FROM THE GOVERNMENT BLOCKED SOME ROADS AND FORCED MOTORISTS TO PAY A WAR TAX THE DEATH TOLL FROM THREE DAYS OF FIGHTING STOOD AT 86 SERB SHELLING KILLED 15 PEOPLE IN SARAJEVO INCLUDING SIX MEMBERS OF ONE FAMILY WHO DIED IN THEIR APARTMENT AND A GIRL WHO WAS KILLED AS SHE AND OTHER CHILDREN WERE LEAVING SCHOOL MORE THAN 200 SHELLS FELL ON THE BOSNIAN CAPITAL AN ACCOUNTANT'S REPORT IS COMING UNDER SCRUTINY AFTER BEING USED BY THE CLINTONS TO QUELL A CONTROVERSY OVER THEIR WHITEWATER DEVELOPMENT PARTNERSHIP WITH THE OWNER OF A FAILED ARKANSAS THRIFT SOME CRITICS SAY THE REPORT PORTRAYING WHITEWATER AS AN UNPROFITABLE VENTURE IS INTERESTING FOR WHAT IT DOESN'T DIVULGE GUN DEALERS WOULD BE REQUIRED TO PAY 600 A YEAR FOR LICENSES UNDER A CLINTON ADMINISTRATION PROPOSAL AND WHITE HOUSE OFFICIALS ESTIMATE THAT THE SHARP INCREASE WILL DRASTICALLY REDUCE THE NUMBER OF DEALERS ACCORDING TO WASHINGTON OFFICIALS TREASURY SECRETARY BENTSEN PLANS TO UNVEIL THE PROPOSAL TODAY THEY SAID CLINTON MET WITH HIS ADVISERS TO PLAN STRATEGY FOR WINNING ENACTMENT THIS YEAR OF HIS BILL TO GUARANTEE HEALTH COVERAGE FOR ALL AMERICANS HE PROMISED A WHOLE LOT OF ROOM FOR COMPROMISE WITH CONGRESS BUT HE SAID HE WOULD INSIST ON ONE POINT COMPREHENSIVE BENEFITS THAT CAN'T BE TAKEN AWAY A RUSSIAN PASSENGER JET CRASHED IN SIBERIA AND BLEW UP KILLING ALL 120 PEOPLE ABOARD INCLUDING 17 FOREIGNERS THE CRASH WAS THE SECOND IN EIGHT DAYS IN THE FORMER SOVIET UNION AND MARKED RUSSIA'S WORST AIR DISASTER IN NEARLY A DECADE ISRAEL AND THE PLO PUBLICLY SWIPED AT EACH OTHER OVER DIFFERENCES THAT ARE HOLDING UP THE ISRAELI PULLOUT FROM GAZA AND JERICHO BUT BEHIND THE SCENES THE TWO SIDES WERE FAXING AND PHONING EACH OTHER IN OSLO A TOP PLO OFFICIAL SAID HE EXPECTED NEGOTIATIONS TO RESUME WITHIN A FEW DAYS ISRAELI SOLDIERS SHOT AND KILLED THREE PALESTINIANS IN CLASHES WITH STONETHROWING DEMONSTRATORS IN GAZA ACCORDING TO LOCAL HOSPITAL OFFICIALS PALESTINIAN SOURCES SAID ALL THREE VICTIMS WERE SUPPORTERS OF THE MUSLIM MILITANT GROUP HAMAS INMATES SHOT AND STABBED ONE ANOTHER AND SET FIRE TO AN OVERCROWDED PRISON IN WESTERN VENEZUELA AN ESTIMATED 100 PEOPLE DIED AUTHORITIES SAID THEY DIDN'T KNOW WHAT SPARKED THE RIOT IN MARACAIBO CLINTON WON'T ANNOUNCE ANY MAJOR NEW AID FOR RUSSIA WHEN HE VISITS THERE NEXT WEEK THE WHITE HOUSE SAID THE PRESIDENT IS SCHEDULED TO ARRIVE IN MOSCOW NEXT WEDNESDAY FOR A THREENIGHT STAY BRITAIN HAS MADE A POTENTIALLY SIGNIFICANT SHIFT ON AN ISSUE AT THE HEART OF THE CONFLICT IN NORTHERN IRELAND THE LEADER OF THE IRISH REPUBLICAN ARMY'S POLITICAL WING DECLARED HE SAID THE POSITIVE CHANGE CAME WHEN BRITAIN REFERRED TO SELFDETERMINATION FOR IRELAND A KEY IRA DEMAND IN A DEC 15 IRISHBRITISH PEACE INITIATIVE SOMALI CLAN LEADER AIDID IS HOLDING PEACE TALKS IN KENYA WITH LEADERS OF RIVAL POLITICAL FACTIONS AND THERE ARE SIGNS OF PROGRESS ACCORDING TO A TOP AIDID AIDE SEPARATELY TWO UN RELIEF AGENCIES EVACUATED THEIR OFFICES IN SOMALIA'S CAPITAL CLASHES ERUPTED IN THE DISPUTED REGION OF NAGORNOKARABAKH IN AZERBAIJAN WITH OVER 30 PEOPLE KILLED IN TWO DAYS OFFICIALS IN THE ARMENIANDOMINATED ENCLAVE REPORTED HEAVY FIGHTING IN MANY AREAS 9401040036 940104 MARKETING BRIEF MEDIA GENERAL CORP FIRM MAY SELL STAKE OR BOOST INTEREST IN NEWSPAPER CHAIN MEDIA GENERAL CORP RICHMOND VA SAID IT IS CONSIDERING SELLING ITS STAKE IN GARDEN STATE NEWSPAPERS INC OR PURCHASING ITS PARTNERS' INTEREST IN THE NEWSPAPER CHAIN THE MEDIA COMPANY'S ANNOUNCEMENT STEMMED FROM THE FAILURE OF GARDEN STATE NEWSPAPERS TO REDEEM SERIES A AND SERIES C PREFERRED STOCK HELD BY MEDIA GENERAL ON JAN 1 AS REQUIRED UNDER THE STOCK'S TERMS THE COMPANY DECLINED TO ELABORATE ON HOW MUCH MONEY WOULD BE REQUIRED TO REDEEM THE PREFERRED SHARES MEDIA GENERAL HOLDS A 40 STAKE IN GARDEN STATE NEWSPAPERS WHICH OWNS SEVERAL NEWSPAPERS IN SMALLER COMMUNITIES SUCH AS LAS CRUCES NM AND WOODBRIDGE VA WILLIAM DEAN SINGLETON AND RICHARD B SCUDDER TWO EXECUTIVES AT CLOSELY HELD MEDIANEWS GROUP HOUSTON EACH HOLD 30 OF GARDEN STATE NEWSPAPERS 9401040035 940104 BUSINESS BRIEF SEAPOWER INTERNATIONAL HOLDINGS PROFIT BEFORE SPECIAL GAIN SOARED IN FISCAL FIRST HALF HONG KONG'S SEAPOWER INTERNATIONAL HOLDINGS LTD SAID NET INCOME JUMPED 61 TO 265 MILLION HONG KONG DOLLARS US34 MILLION FROM HK165 MILLION BEFORE THE INCLUSION OF AN EXTRAORDINARY GAIN IN THE SIX MONTHS ENDED SEPT 30 TURNOVER ROSE 48 TO HK3974 MILLION FROM HK3792 MILLION THE GROUP ALSO REPORTED AN EXTRAORDINARY GAIN OF HK626 MILLION WHICH RESULTED FROM THE SALE OF A 55 INTEREST IN SEABASE INTERNATIONAL HOLDINGS LTD AND A REORGANIZATION OF THE COMPANY WITH SEAPOWER RESOURCES INTERNATIONAL LTD CEASING TO BE A SUBSIDIARY SEAPOWER HAD NO EXTRAORDINARY ITEMS IN THE YEAREARLIER PERIOD FIGURES FOR WHICH HAVE BEEN RESTATED AS A RESULT OF A CHANGE IN THE ACCOUNTING POLICY FOR GOODWILL IN THE YEAR ENDED MARCH 31 1993 SEAPOWER INTERNATIONAL HOLDINGS IS A COLDSTORAGE COMPANY WITH INTERESTS IN FINANCE TRADING INVESTMENTS AND PROPERTY 9401040034 940104 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES CONSOLIDATION SET FOR UNITS THAT SELL TO SCHOOLS FIRMS INTERNATIONAL BUSINESS MACHINES CORP IS CONSOLIDATING THREE BUSINESSES THAT SELL COMPUTERS AND EDUCATIONAL SERVICES TO SCHOOLS AND CORPORATIONS UNDER ONE ORGANIZATION CALLED IBM EDUCATION BUSINESSES ACCORDING TO AN INTERNAL ANNOUNCEMENT BY THE ARMONK NY COMPANY THE NEW OPERATION WILL INCLUDE EDUQUEST WHICH SELLS TO ELEMENTARY AND SECONDARY SCHOOLS ACADEMIC INFORMATION SYSTEMS OR ACIS WHICH SELLS TO HIGHER EDUCATION SCHOOLS AND SKILL DYNAMICS WHICH PROVIDES COMPUTER AND MANAGEMENT TRAINING TO IBM MANAGERS AND OTHER CORPORATIONS ANNELEE VERVILLE 48 YEARS OLD PRESIDENT OF THE APPLICATIONS SOLUTIONS DIVISION'S GENERAL SECTOR DIVISION WAS NAMED GENERAL MANAGER IN CHARGE OF THE EDUCATION BUSINESSES JAMES DEZELL HEAD OF EDUQUEST HAS RETIRED RALPH CLARK VICE PRESIDENT OF SKILL DYNAMICS WILL ALSO RETIRE JAMES CORGEL DIRECTOR OF ACIS WILL CONTINUE IN HIS CURRENT POSITION MS VERVILLE REPORTS TO ROBERT LABANT GENERAL MANAGER IBM NORTH AMERICA 9401040033 940104 TECHNOLOGY BRIEF SANDOZ AG US UNIT GETS CLEARANCE TO SELL CHOLESTEROL DRUG SANDOZ PHARMACEUTICALS CORP SAID IT RECEIVED CLEARANCE FROM THE US FOOD AND DRUG ADMINISTRATION TO MARKET A DRUG AIMED AT TREATING HIGH CHOLESTEROL IN PATIENTS WHO DON'T RESPOND TO DIET CHANGES ALONE THE NEW DRUG LESCOL OR FLUVASTATIN SODIUM WILL ENTER A GIANT DRUG MARKET THAT ALREADY CONSISTS OF COMPETING BLOOD CHOLESTEROL DRUGS FROM PHARMACEUTICAL GIANTS MERCK & CO RAHWAY NJ AND BRISTOLMYERS SQUIBB CO NY SANDOZ PHARMACEUTICALS IN EAST HANOVER NJ A UNIT OF SWISS PHARMACEUTICAL CONCERN SANDOZ AG SAID THE DRUG BLOCKS THE SYNTHESIS OF CHOLESTEROL IN THE LIVER THUS INCREASING ITS UPTAKE OF LOWDENSITY LIPOPROTEIN AND SUBSEQUENTLY DECREASING THE CONCENTRATION OF TOTAL BLOOD CHOLESTEROL IN CLINICAL TRIALS ADVERSE REACTIONS TO LESCOL WERE MILD AND SIMILAR TO PLACEBO SANDOZ SAID COMMON ADVERSE EFFECTS WERE FATIGUE HEADACHE NAUSEA DIARRHEA DYSPEPSIA ABDOMINAL PAIN AND RASH 9401040032 940104 BUSINESS BRIEF KOHLBERG KRAVIS ROBERTS & CO UNIT BUYS MAJORITY STAKES IN 2 DORAL HOTELS FACILITIES KSL RECREATION CORP A UNIT OF KOHLBERG KRAVIS ROBERTS & CO IN NEW YORK SAID IT ACQUIRED A MAJORITY STAKE IN DORAL RESORT & COUNTRY CLUB AND DORAL SATURNIA INTERNATIONAL SPA RESORT BOTH IN MIAMI FROM DORAL HOTELS & RESORTS MANAGEMENT CORP TERMS WEREN'T DISCLOSED AS PART OF ITS INVESTMENT KSL SAID IT WILL FUND RENOVATION OF THE DORAL RESORT & COUNTRY CLUB HOST OF THE DORAL RYDER OPEN PROFESSIONAL GOLF TOURNAMENT THE TWO FACILITIES WILL CONTINUE TO BE MANAGED BY AN AFFILIATE OF DORAL HOTELS & RESORTS A SPOKESWOMAN FOR DORAL HOTELS & RESORTS A UNIT OF CLOSELY HELD CAROL CORP SAID THE TWO RESORTS REPRESENT SLIGHTLY LESS THAN ONETHIRD OF DORAL HOTELS & RESORTS' HOTEL HOLDINGS DORAL HOTELS & RESORTS WHICH SOLD ITS DORAL OCEAN BEACH RESORT HOTEL IN MIAMI BEACH EARLIER THIS YEAR OWNS FOUR HOTELS IN MANHATTAN IT ALSO OWNS SOME NONHOTEL REAL ESTATE 9401040031 940104 REVIEW & OUTLOOK EDITORIAL PULL THE TOOTH SLOWLY HAPPILY BORIS YELTSIN HAS MORE NERVE THAN SOME OF HIS WESTERN SUPPORTERS AT THE VERY MOMENT WHEN MANY WESTERN GOVERNMENTS AND COMMENTATORS WERE DWELLING ON THE ERRORS OF REFORM AND CALLING UPON RUSSIA TO RETHINK RADICAL LIBERALIZATION BORIS YELTSIN INSTEAD PUSHED DOWN ON THE ACCELERATOR MR YELTSIN ISSUED A DECREE LIBERALIZING THE RUSSIAN GRAIN MARKET FARMERS WILL NO LONGER BE OBLIGED TO SELL GRAIN TO THE GOVERNMENT AT ARTIFICIAL PRICES THE DECREE ALSO OUTLAWS LOCAL ATTEMPTS TO RESTRICT THE TRADE OF GRAIN AND OILSEEDS WITHIN RUSSIA AND CALLS FOR THE PRIVATIZATION OF GRAIN STORAGE AND PRODUCTION FACILITIES MR YELTSIN ALSO ACCELERATED THE PRIVATIZATION OF MUNICIPAL ENTERPRISES HE SIGNED INTO LAW A MEASURE THAT WOULD ALLOW RESIDENTIAL BUILDINGS TO TURN THEIR APARTMENTS INTO CONDOMINIUMS THE GOVERNMENT WENT AHEAD ON AN AUCTION TO PRIVATIZE THE NATION'S LARGEST OIL COMPANY THE COMPANY ON THE BLOCK SURGUTNEFTEGAZ PRODUCES 10 OF RUSSIA'S TOTAL OUTPUT THERE WAS ANOTHER DECREE THAT WAS DESIGNED TO BRING RUSSIA A FUNCTIONING BANKRUPTCY LAW THOUGH THIS EFFORT HAS BEEN FRAUGHT WITH DIFFICULTIES PRIVATIZATION MINISTER ANATOLY CHUBAIS HELD A PRESS CONFERENCE TO UNDERLINE JUST HOW SUCCESSFUL THE PRIVATIZATION EFFORT HAS BEEN MORE THAN 55 MILLION RUSSIANS NOW OWN SHARES IN SOME SORT OF BUSINESS ALMOST 70 OF THE NATION'S SMALL AND MEDIUMSIZE BUSINESSES ARE NOW IN PRIVATE HANDS THIS DOESN'T MEAN THAT THE COMPANIES ARE YET FUNCTIONING LIKE PRIVATE BUSINESSES IN THE WESTERN SENSE BUT IT'S A REMARKABLE ACHIEVEMENT AND IS NOW IRREVERSIBLE MR YELTSIN HAS ALSO GOT THE VARIOUS MEMBERS OF HIS COALITION GOVERNMENT MARCHING IN ROUGHLY THE SAME DIRECTION JUST AFTER THE PARLIAMENTARY ELECTIONS PRIME MINISTER VIKTOR CHERNOMYRDIN WHOSE ECONOMIC VIEWS REMAIN A MYSTERY SAID THAT THE RADICAL REFORMS WERE POORLY THOUGHT OUT EXPERIMENTS BUT AT A SUBSEQUENT PRESS CONFERENCE MR YELTSIN ANNOUNCED THAT CHIEF REFORMER YEGOR GAIDAR WOULD STAY AND SO WOULD HIS POLICIES MR CHERNOMYRDIN GOT THE MESSAGE AND DELIVERED A SPEECH SAYING THAT THERE WAS NO ALTERNATIVE BUT TO STAY THE REFORM COURSE ONE OF THE PROBLEMS WITH THE ANALYSIS OF RUSSIAN REFORM IS THAT IT TREATS LIBERALIZATION AS SOME SORT OF COHERENT STRATEGY THAT CAN BE SUBTLY ALTERED OR SLOWED IN REALITY IT IS A MESSY STUMBLE ONE CAN ATTEMPT GRADUAL REFORM WHICH IN REALITY MEANS POLITICIANS SCREAM AT EACH OTHER WHILE THE COMMUNIST STRUCTURES ROT THIS IS THE OPTION UKRAINE HAS CHOSEN LEAVING UKRAINE IN WORSE ECONOMIC SHAPE THAN RUSSIA AND WITH THE SAME PERVASIVE CRIMINALITY THEN THERE IS RADICAL REFORM IN WHICH PRIVATIZATION PROCEEDS AND THE GOVERNMENT TRIES TO IMPOSE SOME SORT OF FISCAL AND MONETARY DISCIPLINE EVEN THE SUPPOSEDLY RADICAL GAIDAR STRATEGY HAS FAILED ON TWOTHIRDS OF THIS AGENDA EFFORTS BY SOME IN THE CABINET TO REBUILD A MASSIVE NEW GOSPLAN TO CENTRALLY PLAN THE ECONOMY HAVE BEEN DEFEATED BY THE FEW REFORMERS LEFT BUT STATE SUBSIDIES STILL FLOW FREELY RUSSIA HAS A SIX TRILLION RUBLE FEDERAL DEFICIT AND DREAMS OF BRINGING IT DOWN TO 10 OF GDP THE INFLATION RATE IS DOWN TO 15 A MONTH BUT MOST ANALYSTS BELIEVE IT WILL GO BACK UP MR YELTSIN TALKS ABOUT CREATING A BETTER SOCIAL SAFETY NET CLEARLY THE CURRENT SUPPORT SYSTEM IN WHICH COMPANIES ALSO SERVE AS WELFARE AGENCIES HAS TO GO BUT FURTHER SUPPORT FOR THE POOR AND THE ELDERLY HAS TO BE OFFSET BY CUTS IN INDUSTRIAL SUBSIDIES OR ELSE THE RESULTING INFLATION WILL MAKE PEOPLE EVEN WORSE OFF THE WESTERN AID AGENCIES HAVE COME IN FOR A LOT OF ABUSE FOR FAILING TO HELP REGULAR PEOPLE SOME OF IT IS JUSTIFIED THE AGENCIES WERE MOST COMFORTABLE DEALING WITH GOVERNMENTS RATHER THAN PRIVATE COMPANIES AND INDIVIDUALS THEY OVEREMPHASIZED MULTIMILLION OR MULTIBILLIONDOLLAR AID PROJECTS WHEN THE MOST USEFUL PROJECT IS OFTEN A FEW THOUSAND DOLLARS DIRECTED AT AN ENTREPRENEUR AND THERE IS FAR TOO MUCH INTELLECTUAL PORK BARREL HANDED OUT TO WESTERN CONSULTANTS BUT THE POSSIBLE INFLUENCE OF WESTERN AGENCIES ON THE ENTIRE RUSSIAN ECONOMY IS MARGINAL THEY MOSTLY SERVE AS WHIPPING BOYS FOR BOTH SIDES THE BASIC PROBLEM IS THAT YOU CAN'T BUILD A PREFAB MARKET DEMOCRACY AND THEN PLOP IT ON TOP OF A COUNTRY THE CIVIC INSTITUTIONS THAT EMERGED IN THE WEST OVER A MILLENIA ARE FORMING QUICKLY IN RUSSIA BUT NOT OVERNIGHT YOUNG BUSINESSMEN ARE FAR IN FRONT OF THE POLITICIANS YET THINGS LIKE ENFORCEABLE CONTRACTS TAKE TIME FACING THE INEVITABLE MESS MANY ANALYSTS IN MOSCOW AND THE WEST SEEM PANICKY AND FICKLE BUT ON THE BASIS OF THE EARLY RETURNS BORIS YELTSIN FOR ALL HIS FLAWS SEEMS WILLING TO STAY THE COURSE IN THIS IMPORTANT AREA 9401040030 940104 TECHNOLOGY LOTUS GETS LARGE ORDER FROM COOPERS & LYBRAND CAMBRIDGE MASS COOPERS & LYBRAND WILL BUY 28000 COPIES OF LOTUS DEVELOPMENT CORP'S SPREADSHEET WORDPROCESSING AND NOTES COMMUNICATIONS SOFTWARE ONE OF LOTUS'S LARGEST BUNDLED SALES TO DATE THE SALE WHICH COULD EXPAND TO 40000 COPIES OVER FIVE YEARS SHOWS CONTINUING MOMENTUM FOR LOTUS'S SMARTSUITE PACKAGE AND SUGGESTS THAT NOTES IS BEGINNING TO PULL UP SALES OF LOTUS'S OTHER PROGRAMS THE BIG ACCOUNTING FIRM WAS ALREADY A LARGE USER OF LOTUS 123 AND NOTES BUT THIS LATEST SALE IS A SIGNIFICANT EXPANSION OF THAT COMMITMENT IT ALSO APPARENTLY DISPLACES WORDPERFECT CORP'S WORDPROCESSING SOFTWARE AND WINS ANOTHER POTENTIAL CUSTOMER AWAY FROM MICROSOFT CORP'S COMPETING MICROSOFT OFFICE BUNDLED OFFERING IN THE THIRD QUARTER LOTUS SAID SMARTSUITE SALES HAD RISEN TO 35 OF TOTAL WINDOWS DESKTOP SALES WHICH IN TURN ACCOUNTED FOR MORE THAN HALF THE COMPANY'S TOTAL SALES OF 900 MILLION IN 1992 A SPOKESMAN DECLINED TO GIVE A COMPARABLE FIGURE FOR SMARTSUITE SALES FOR THE FOURTH QUARTER CITING THE QUIET PERIOD PRIOR TO THE RELEASE OF FOURTHQUARTER RESULTS LATER THIS MONTH HE ALSO DECLINED TO GIVE A VALUE FOR THE TRANSACTION EXCEPT TO CALL IT A MULTIMILLIONDOLLAR SALE 9401040029 940104 BUSINESS BRIEF ENTERGY CORP ACQUISITION IS COMPLETED OF GULF STATES UTILITIES CO ENTERGY CORP NEW ORLEANS SAID IT COMPLETED ITS 23 BILLION ACQUISITION OF GULF STATES UTILITIES CO BEAUMONT TEXAS AND THE TWO COMPANIES ARE NOW A HOLDING COMPANY ALSO NAMED ENTERGY CORP GULF STATES SHAREHOLDERS WHO ELECTED TO RECEIVE CASH WILL RECEIVE 20 IN CASH OR COMMON STOCK OF THE NEW COMPANY FOR EACH SHARE OF GULF STATES COMMON STOCK ENTERGY A UTILITY HOLDING COMPANY SAID PRELIMINARY INDICATIONS ARE THAT PAYMENTS WILL BE 25 CASH AND 75 NEW ENTERGY CORP STOCK GULF STATES SHAREHOLDERS WHO ELECTED TO RECEIVE STOCK WILL RECEIVE 0558 SHARES OF NEW ENTERGY CORP COMMON STOCK FOR EACH SHARE OF GULF STATES COMMON STOCK PREFERRED AND PREFERENCE GULF STATES STOCK WILL REMAIN OUTSTANDING GULF STATES STOCK ENTERGY SHAREHOLDERS WILL RECEIVE ONE SHARE OF THE NEW COMPANY FOR EACH SHARE OF THE OLD COMPANY 9401040024 940104 TECHNOLOGY BRIEF BIOTECHNOLOGY GENERAL CORP FIRM RAISES 375 MILLION TO FUND R&D PARTNERSHIP BIOTECHNOLOGY GENERAL CORP ISELIN NJ SAID IT RAISED 375 MILLION IN FINANCING TO FUND A RESEARCH AND DEVELOPMENT PARTNERSHIP CALLED BIOCARDIA CORP BIOTECHNOLOGY IS A MAKER OF GENETICALLY ENGINEERED HEALTHCARE PRODUCTS BIOCARDIA CORP WAS FORMED LAST YEAR AS AN INDEPENDENT COMPANY THAT WILL LICENSE CERTAIN BIOTECHNOLOGY PRODUCTS IN EARLY STAGES OF DEVELOPMENT AND PAY BIOTECHNOLOGY TO DEVELOP AND TEST THOSE PRODUCTS BIOTECHNOLOGY ESTIMATES THAT IT WILL RECEIVE ABOUT 32 MILLION OF THE FINANCING FROM BIOCARDIA OVER FOUR YEARS IN THE FORM OF PAYMENTS FOR ITS RESEARCH AND DEVELOPMENT EFFORTS IN ORDER TO MAKE INVESTING IN BIOCARDIA ATTRACTIVE TO INVESTORS D BLECH & CO WHICH PLACED THE FINANCING OFFERED UNITS TO INVESTORS THAT ALLOW THEM TO MAKE MONEY IF THE PRODUCTS DO WELL OR IF BIOTECHNOLOGY'S STOCK GOES UP EACH OF THE 375 UNITS COSTING 100000 EACH CONSISTS OF FOUR SHARES OF BIOCARDIA COMMON STOCK AND 15000 WARRANTS TO PURCHASE BIOTECHNOLOGY COMMON STOCK AT AN EXERCISE PRICE OF 549 THE WARRANTS ARE EXERCISABLE FOR FIVE YEARS 9401040023 940104 ECONOMY MANUFACTURING SHOWS BIG GAIN FOR DECEMBER PURCHASING MANAGERS INDEX HIT 579 LAST MONTH BEST SINCE LAST JANUARY BY JEFF LEEDS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANUFACTURING ACTIVITY SHOT UP IN DECEMBER HITTING ITS HIGHEST MARK IN NEARLY A YEAR ACCORDING TO A SURVEY OF PURCHASING MANAGERS THE REPORT BY THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SHOWED STRENGTH IN PRODUCTION AND NEW ORDERS BUT WEAKNESS IN FACTORY EMPLOYMENT THE SURVEY INDICATED FEWER JOBS WERE LOST THAN IN OCTOBER HOWEVER THE ASSOCIATION'S INDEX JUMPED TO 579 LAST MONTH AFTER NOVEMBER'S 557 READING IT FELL JUST SHORT OF THE 580 READING LAST JANUARY THE HIGH FOR 1993 WE'LL PROBABLY SEE CONTINUED GROWTH IN 1994 SAID ROBERT BRETZ HEAD OF THE PURCHASING SURVEY AND DIRECTOR OF CORPORATE PURCHASING AT PITNEY BOWES INC BUT MR BRETZ CAUTIONED THAT SUSTAINING DECEMBER'S STRONG PACE WOULD BE EXTREMELY CHALLENGING PRICES DECLINED FOR THE FOURTH CONSECUTIVE MONTH IN DECEMBER ACCORDING TO THE SURVEY SUGGESTING THAT INFLATION IS STILL UNDER CONTROL DESPITE PICKUPS IN ECONOMIC ACTIVITY ONLY TRANSPORTATIONEQUIPMENT COMPANIES AND FURNITURE MAKERS REPORTED INCREASED HIRING DURING DECEMBER BUT MR BRETZ SAID THE EMPLOYMENT COMPONENT IN THE SURVEY WAS STILL AT ITS BEST LEVEL IN FOUR YEARS SUGGESTING THAT OVERALL MANUFACTURING PAYROLLS MAY HAVE INCREASED LAST MONTH THE LABOR DEPARTMENT REPORTS THE DECEMBER FIGURES FRIDAY SEPARATELY A SURVEY BY THE AMERICAN BUSINESS CONFERENCE SHOWED 25 OF ITS MEMBERS EXPECT INCREASED JOB CREATION IN THE FIRST QUARTER OF 1994 THIS RECOVERY IS NOW BROAD ENOUGH AND DEEP ENOUGH THAT NEW ORDERS ARE FINALLY TRANSLATING INTO NEW JOBS SAID BARRY ROGSTAD PRESIDENT OF THE CONFERENCE A GROUP OF 100 FASTGROWING MIDSIZE COMPANIES ALSO THE COMMERCE DEPARTMENT SAID CONSTRUCTION SPENDING CORRECTED FOR INFLATION SURGED 12 IN NOVEMBER THE SEVENTH CONSECUTIVE MONTH OF IMPROVEMENT PRIVATE CONSTRUCTION LED BY RESIDENTIAL BUILDING INCREASED 19 INDUSTRIAL AND OFFICE CONSTRUCTION ALSO ROSE BUT SPENDING FOR OTHER NONRESIDENTIAL BUILDING WAS FLAT OR FELL PUBLIC CONSTRUCTION SLIPPED 04 AFTER GAINING 25 IN OCTOBER BUT SEWER AND HIGHWAY CONSTRUCTION POSTED SLIGHT INCREASES DANIEL BENNET EXECUTIVE VICE PRESIDENT OF THE ASSOCIATED BUILDERS AND CONTRACTORS AN INDUSTRY GROUP BASED IN ROSSLYN VA SAID BUILDERS ARE EXPERIENCING STEADY IMPROVEMENT NOT SPECTACULAR EVERYBODY'S SAYING IT'S COMING BACK BUT THE GAINS ARE FROM A DEPRESSED LEVEL BUSINESS STILL ISN'T BOOMING HE SAID ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9401040022 940104 NEW F22 FUNDING CUTS MAY INCREASE JET FIGHTER'S FINAL TAB BY 700 MILLION BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL NEW FUNDING CUTS FOR DEVELOPMENT OF THE NATION'S LAST PLANNED FIGHTER JET ULTIMATELY COULD ADD MORE THAN 700 MILLION TO THE TAXPAYER TAB FOR ITS STRETCHEDOUT DEVELOPMENT THEY ALSO COULD PUSH THE FIRST TEST FLIGHTS BACK TO MARCH 1997 A SETBACK OF NEARLY NINE MONTHS FROM THE CURRENT SCHEDULE PEOPLE FAMILIAR WITH THE PROGRAM SAY THE SUPERSONIC F22 RADAREVADING FIGHTER IS BEING DEVELOPED BY LOCKHEED CORP AND BOEING CO LAST YEAR PRODUCTION AND FUNDING CUTS AND OTHER PROBLEMS WITH THE HIGHPROFILE PROGRAM PROMPTED THE AIR FORCE TO TACK ON 12 BILLION TO ITS EVENTUAL COST RAISING THE FIGURE TO 114 BILLION AND DELAYING THE FIRST FLIGHT BY 11 MONTHS TO JUNE 1996 NOW NEW ESTIMATES DEVELOPED BY THE AIR FORCE INDICATE THAT A RECENT CONGRESSIONAL FUNDING CUT OF 163 MILLION WILL TRANSLATE INTO AT LEAST 400 MILLION IN ADDED COSTS FOR THE F22 AND STRETCH OUT DEVELOPMENT BY FIVE MONTHS ACCORDING TO INDUSTRY AND GOVERNMENT OFFICIALS FAMILIAR WITH THE CALCULATIONS AND LAST WEEK AIR FORCE OFFICIALS LEARNED THAT THE 1995 DEFENSE DEPARTMENT BUDGET BEING PREPARED THIS MONTH IS LIKELY TO CALL FOR ANOTHER 100 MILLION FUNDING CUT THAT COULD BOOST ULTIMATE DEVELOPMENT COSTS BY ANOTHER 300 MILLION AND FURTHER DELAY THE F22'S FIRST FLIGHT BY AN ADDED FOUR MONTHS THOSE FAMILIAR WITH THE PROGRAM SAY EVERY TIME F22 FUNDING FOR A GIVEN YEAR IS CUT THE TOTAL COST OF DEVELOPING THE PLANE ACTUALLY ESCALATES WHEN THE FUNDING IS CUT IN THE SHORT TERM DEVELOPMENT MUST BE SLOWED MEANING WORK WITH LOTS OF FIXEDOVERHEAD COSTS IS STRETCHED OUT OVER MORE TIME THE DEFENSE COMPANIES CAN BILL THE GOVERNMENT FOR THE HIGHER COSTS BUT THEY FACE A QUANDARY LONGER TERM THE HIGHER PRICE INVARIABLY GIVES POLITICAL OPPONENTS MORE AMMUNITION FOR CUTTING THE PROGRAM FURTHER AS CONGRESS DEBATED TWO MONTHS AGO BEFORE CUTTING THE F22 BUDGET BY 163 MILLION GEN MERRILL MCPEAK CHIEF OF STAFF OF THE AIR FORCE WARNED IN AN INTERVIEW THAT THE F22 WAS IN DANGER OF BEING PUSHED INTO THE SAME OLD DEATH SPIRAL WE ALWAYS GET INTO ON THESE PROGRAMS THE AIR FORCE ALSO HAS SAID THAT LARGE CUTS IN FUNDING WILL DELAY THE HIRING OF THOUSANDS OF WORKERS TO MAKE THE JETS AN AIR FORCE SPOKESWOMAN SAID SHE COULD NOT CONFIRM THE ESTIMATES OF DELAYS AND HIGHER COSTS CRITICS OF THE F22 INCLUDING THE GENERAL ACCOUNTING OFFICE HAVE BEGUN ATTACKING THE PLANE AS UNNECESSARY FOR NOW GIVEN THE FALL OF THE FORMER SOVIET UNION AND THE STRENGTH OF THE NATION'S FLEET OF F15 FIGHTERS MADE BY MCDONNELL DOUGLAS CORP THOSE ARGUMENTS HAVE BEEN ESPECIALLY WELL RECEIVED IN THE SENATE WHERE COMMITTEE MEMBERS ATTEMPTED UNSUCCESSFULLY A FEW MONTHS AGO TO ENACT A GAORECOMMENDED CUT OF 353 MILLION FOR F22 DEVELOPMENT AT LOCKHEED AND BOEING MANAGERS SAY THE PROGRAM IS TECHNICALLY ON TRACK BUT THAT THE FUNDING CUTS ARE PROVING EXTREMELY DISRUPTIVE LOCKHEED BASED IN CALABASAS CALIF CONTROLS TWOTHIRDS OF THE F22 CONTRACT WITH SEATTLEBASED BOEING CONTROLLING THE OTHER THIRD A LOCKHEED SPOKESMAN SAID THAT MANUFACTURING OF AFTFRAME PARTS BEGAN DEC 8 FOR NINE DEVELOPMENTPHASE JETS HE SAID THE PROSPECT OF A FURTHER STRETCHOUT IN DEVELOPMENT HAD BEEN RAISED WITH LOCKHEED MANAGERS BUT HE DECLINED TO TALK ABOUT FUNDING CUTS AND ADDED COSTS RICHARD HARDY CHIEF OF MILITARY AIRPLANE PROGRAMS AT BOEING SAID THAT WITH THE F22'S PREVIOUSLY MANDATED CUTS WE'VE GOT THE PROGRAM SQUEEZED SO THAT YOU CAN'T JUST TAKE A 163 MILLION HIT AND NOT SLIDE SOMETHING AS FOR THE LENGTHENING IN DEVELOPMENT TIME HE SAID THE COMPANIES ARE WORKING LIKE HELL TO GET THAT REDUCED I DON'T KNOW WHETHER WE'LL SUCCEED OR NOT MANAGERS AT LOCKHEED BOEING AND THE AIR FORCE ALREADY WERE CONCERNED BY LAST YEAR'S 30 CUT IN TOTAL PRODUCTION THAT REDUCTION TO 442 JETS FROM 648 WILL PUSH PERJET COSTS TO 130 MILLION FROM 87 MILLION ACCORDING TO GOVERNMENT ESTIMATES 9401040021 940104 CREDIT MARKETS LONG YIELDS HIT HIGHEST LEVELS SINCE MIDAUGUST ON FRESH REPORTS SIGNALING ECONOMIC GROWTH BY THOMAS T VOGEL JR AND GENE COLTER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND TRADERS GOT A TASTE YESTERDAY OF WHAT MAY BE IN STORE FOR THEM IN A NEW YEAR THAT BY MANY ACCOUNTS WILL BE ONE OF GREATER STRENGTH IN THE US ECONOMY ECONOMIC REPORTS SHOWING STRENGTH IN THE US ECONOMY PUSHED LONGTERM BOND YIELDS TO THEIR HIGHEST LEVELS SINCE MIDAUGUST THE BENCHMARK 30YEAR TREASURY BOND YIELD ROSE TO 642 YESTERDAY COMPARED WITH 634 ON FRIDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD PLUNGED MORE THAN A POINT OR MORE THAN 10 FOR A BOND WITH A 1000 FACE VALUE TO 97 22/32 PEOPLE CAME BACK FOR THE NEW YEAR IN A BEARISH MOOD ON THE BOND MARKET THERE'S NO QUESTION ABOUT THAT SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS THE BOND MARKET IS BEGINNING TO REALIZE THAT THE ECONOMY IS DOING BETTER THAN PEOPLE THOUGHT IT WOULD JUST 30 DAYS AGO SAID MARK GRANT DIRECTOR OF CAPITAL MARKETS AT RODMAN & RENSHAW OF CHICAGO THERE IS A DEFINITE CHANGE IN SENTIMENT HERE HE SAID IT IS ENOUGH TO CAUSE SOME INVESTORS TO SELL THEIR HOLDINGS OF LONGTERM TREASURYS HE SAID BUT NOT ENOUGH TO STARTLE THE MARKET MR GRANT PREDICTS THE 30YEAR BOND YIELD WILL HIT 650 OVER THE NEXT FEW WEEKS BUT INVESTORS ARE NOT THROWING THE TOWEL IN QUITE YET SAYS DAVID ADER A TREASURYMARKET ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES INFLATION THE BANE OF BOND INVESTORS BECAUSE IT REDUCES THE RETURN OF FIXEDRATE INVESTMENTS WILL REMAIN SUBDUED THIS YEAR HE SAID BESIDES MANY INVESTORS ARE WAITING WITH PILES OF CASH ON THE SIDELINES AND ARE READY TO INVEST IN THE TREASURY MARKET ALBEIT A BIT MORE CAUTIOUSLY THAN LAST YEAR HE SAID HE CALLED THE YIELD RISE WHICH BEGAN LAST THURSDAY A TEMPORARY CORRECTION PRICES DROPPED ALMOST AT THE START OF TRADING YESTERDAY AS A COUPLE OF BIG HANDS INCLUDING A HEDGE FUND AND POSSIBLY ONE DEALER UNLOADED HOLDINGS OF TWOYEAR AND FIVEYEAR NOTES WHILE THOSE EARLY TRADES MADE UP THE BRUNT OF THE SESSION'S VOLUME THERE WAS LITTLE ROOM FOR RECOVERY AFTER SEVERAL POSITIVE ECONOMIC REPORTS RELEASED LATER IN THE MORNING ADDED TO THE BEARISH SENTIMENT BOND INVESTORS OFTEN REACT NEGATIVELY TO GOOD ECONOMIC NEWS BECAUSE THEY FEAR THAT A STRENGTHENING ECONOMY WILL LEAD TO GREATER INFLATIONARY PRESSURES THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT REPORTED THAT ITS COMPOSITE INDEX FOR DECEMBER REGISTERED 579 UP FROM 557 IN NOVEMBER THAT'S THE THIRD CONSECUTIVE MONTH THE INDEX HAS BEEN ABOVE 50 GAINING EACH OF THOSE MONTHS READINGS ABOVE 50 INDICATE AN EXPANSION IN THE MANUFACTURING SECTOR MEANWHILE CONSTRUCTION SPENDING WAS REPORTED TO HAVE SURGED AN INFLATIONADJUSTED 12 IN NOVEMBER WHILE THE GAIN IN THE PURCHASINGMANAGEMENT INDEX WAS LARGELY EXPECTED THE RISE IN CONSTRUCTION SPENDING CAUGHT MANY ON WALL STREET BY SURPRISE AFTER FURTHER EXAMINATION OF THE PURCHASINGMANAGEMENT REPORT TRADERS FOUND CAUSE FOR EVEN MORE DISCONTENT THAT'S BECAUSE ONE COMPONENT OF THE REPORT SHOWED GAINS IN EMPLOYMENT DURING DECEMBER THE GAIN IN THE PURCHASING MANAGERS' EMPLOYMENT COMPONENT LIKELY WILL CAUSE MANY WALL STREET FIRMS TO ONCE AGAIN REVISE UPWARD THEIR ESTIMATES FOR GROWTH IN FOURTHQUARTER GROSS DOMESTIC PRODUCT SAID KEVIN LOGAN CHIEF US ECONOMIST AT SWISS BANK CORP MR LOGAN SAID HIS OWN ESTIMATE FOR FOURTHQUARTER GDP AFTER VIEWING YESTERDAY'S DATA STANDS AT A 45 TO 475 ANNUAL GROWTH RATE WHILE HE AND MANY OTHER WALL STREET ECONOMISTS BELIEVE THAT THIS PACE OF ECONOMIC EXPANSION WILL SLOW THIS QUARTER IN THE NEAR TERM IT'S VERY HARD TO PUT TOGETHER AN ARGUMENT AS TO WHY YIELDS SHOULD GO DOWN SAID MR LOGAN SINCE LAST THURSDAY THE PRICE OF THE 30YEAR TREASURY BOND HAS DROPPED 2 1/4 POINTS OR 2250 FOR A BOND WITH A 1000 FACE VALUE OTHER MATURITIES HAVE BEEN BATTERED AS WELL THOUGH NONE AS SEVERELY AS THE 30YEAR BOND OVER THE SAME PERIOD THE 10YEAR NOTE HAS FALLEN MORE THAN 1 1/2 POINTS TO YIELD 590 YESTERDAY THE FIVEYEAR NOTE HAS DROPPED NEARLY 7/8 POINT OVER THE PERIOD TO YIELD 530 YESTERDAY WHILE THE MARKET HELD UP ADMIRABLY DURING DECEMBER'S BARRAGE OF REPORTS SIGNALING ECONOMIC GROWTH THERE ARE SIGNS THAT THE SUPPORT MAY BE WANING FOR ONE THING SHORT POSITIONS ARE STARTING TO GROW SAID DANIEL CALLAHAN MANAGER OF GOVERNMENT TRADING AT PAINEWEBBER INC IN A SHORT POSITION AN INVESTOR SELLS A BORROWED SECURITY IN HOPES OF BUYING IT BACK LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE LARGER SHORT POSITIONS OFTEN IMPLY BEARISH SENTIMENTS SUCH A GAIN WOULD CONFIRM THE STRENGTH SEEN IN YESTERDAY'S PURCHASING MANAGERS' REPORT IT WOULD ALSO BE WELL ABOVE THE THREEMONTH MOVING AVERAGE OF 185000 IN PAYROLL GAINS POINTED OUT MR JOHNSON OF FIRST CHICAGO MR ADER OF TECHNICAL DATA POINTS TO ANOTHER BIT OF BAD NEWS FOR THE BOND MARKET A SHARP DROP IN MUNICIPAL DEFEASANCE PROGRAMS IN THESE PROGRAMS CITIES AND STATES ISSUE REFUNDING BONDS FOR SECURITIES THAT ARE NOT YET CALLABLE IN THE MEANTIME THEY INVEST THE PROCEEDS FROM THE REFUNDING BOND ISSUES IN TREASURYS MOSTLY THOSE MATURING IN FIVE TO 10 YEARS WITH LONGTERM YIELDS HITTING THEIR LOWEST LEVELS SINCE THE LATE 1960S MUNICIPALITIES RUSHED TO REFINANCE AND SOLD 1929 BILLION OF REFUNDING BONDS IN 1993 ACCORDING TO MR ADER THAT VOLUME IS PROJECTED TO DROP BELOW 70 BILLION THIS YEAR HE SAID THE RESULT WILL BE WEAKER DEMAND FOR TREASURY SECURITIES HOWEVER MR ADER DOESN'T BELIEVE BOND YIELDS ARE GOING TO BE SHOOTING MUCH HIGHER IF PEOPLE BELIEVED THE ECONOMY IS PICKING UP AND THE FEDERAL RESERVE IS ABOUT TO RAISE SHORTTERM INTEREST RATES IN ORDER TO STAVE OFF INFLATIONARY PRESSURES HE SAID SHORTTERM RATES WOULD BE MOVING HIGHER THAN THEY ARE NOW AND THE GAP BETWEEN SHORTTERM AND LONGTERM RATES WOULD BE NARROWING THAT'S NOT HAPPENING YET HE SAID THAT'S BECAUSE MUCH OF THE RECENT SELLING HAS BEEN DONE BY ARBITRAGE PLAYERS AND SOCALLED HEDGEFUND MANAGERS HE SAID AND NOT BY INDIVIDUAL INVESTORS AND MUTUALFUND MANAGERS FLEEING THE BOND MARKET MANY OF THESE ARBITRAGE PLAYERS AND HEDGEFUND MANAGERS ARE UNWINDING COMPLICATED POSITIONS CALCULATED TO PROFIT FROM A NARROWING YIELD GAP HERE ARE DETAILS OF 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 BOTH ISSUES ARE DATED JAN 6 THE 13WEEK BILLS MATURE APRIL 7 1994 AND THE 26WEEK BILLS MATURE JULY 7 1994 FIGHTING BETWEEN THE MEXICAN ARMY AND A GROUP OF REBELS IN THE SOUTHERN STATE OF CHIAPAS WORRIED INVESTORS IN MEXICAN BONDS BUT THE FIGHTING HASN'T SO FAR CAUSED ENOUGH ANXIETY TO SPARK A MAJOR SELLOFF BUT US INVESTORS WHO HAVE STREAMED INTO THE MEXICAN BOND MARKET IN EVER LARGER NUMBERS OVER THE PAST FEW YEARS AREN'T IGNORING THE SITUATION EITHER YOU DON'T GET THIS TYPE OF UPRISING SPONTANEOUSLY SAID WILLIAM HEALY HEAD OF EMERGINGMARKET SALES AT ING SECURITIES A US SUBSIDIARY OF INTERNATIONALE NEDEERLANDEN GROUP BANK OF THE NETHERLANDS AS MANY LATIN AMERICAN NATIONS HAVE WORKED TO PAY OFF CRUSHING FOREIGN DEBTS AND EASE ECONOMIC CRISES OTHER SOCIAL CRISES HAVE ARISEN PEOPLE CANNOT UNDERESTIMATE THE SOCIAL PRESSURES THESE PEOPLE ARE UNDER HE ADDED AND WHAT HAPPENED OVER THE WEEKEND IS A MANIFESTATION OF THAT ACCORDING TO NEWS REPORTS THE REBELS ARE NATIVES OF THE POOR CHIAPAS STATE WHO ARE OPPOSED TO THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WENT INTO EFFECT WITH THE NEW YEAR THE REBELS ARE REPORTEDLY ANGRY OVER A LACK OF ECONOMIC PROGRESS IN THEIR OWN REGION SOCALLED MEXICAN BRADY PAR BONDS DROPPED ABOUT A POINT OR ABOUT 10 FOR A BOND WITH A 1000 FACE VALUE TO 825 FOR A YIELD OF 785 ACCORDING TO ING SECURITIES BRADY BONDS ARE FOREIGNGOVERNMENT SECURITIES CREATED FROM A DEBT RESTRUCTURING PROGRAM DESIGNED BY FORMER US TREASURY SECRETARY NICHOLAS BRADY MANY OF THEM ARE COLLATERALIZED BY US TREASURY SECURITIES MEXICAN BRADY BONDS TEND TO MOVE IN TANDEM WITH 30YEAR US TREASURY BONDS WHICH THEMSELVES DROPPED OVER A POINT YESTERDAY SO THE DROP OF ONE POINT IN THE MEXICAN BONDS IN LIGHT TRADING WASN'T NECESSARILY A SIGN OF WEAKNESS IN THE MARKET THE MEXICAN BRADY BONDS ARE CONSIDERED A BENCHMARK FOR MANY OTHER LATIN AMERICAN GOVERNMENT BONDS SOME OF WHICH ALSO EXPERIENCED ONEPOINT DROPS AS IN THE CASE OF ARGENTINA PRICES OF RH MACY & CO BONDS SURGED IN ACTIVE TRADING ON NEWS THAT FEDERATED DEPARTMENT STORES INC MAY SEEK CONTROL OF THE RETAILER BUT GENERALLY THE CORPORATE BOND MARKET WAS QUIET NO NEW DEBT WAS PRICED AND ISSUANCE IS EXPECTED TO REMAIN SCANT THROUGHOUT THE WEEK INVESTMENTGRADE BOND TRADING WAS VERY LIGHT WITH PRICES FOLLOWING THOSE OF TREASURYS DOWNWARD SPREADS OR CORPORATE BOND YIELDS IN RELATION TO THOSE OF TREASURYS TIGHTENED SLIGHTLY IN REACTION TO THE SELLOFF IN TREASURYS AND THE LIGHT NEWISSUE CALENDAR A TRADER SAID TRADING IN THE JUNKBOND MARKET WAS ACTIVE DURING THE MORNING BUT QUIET LATER IN THE SESSION PRICES ROSE ABOUT 1/4 POINT AND THAT MARKET IS EXPECTED TO REMAIN STRONG WHILE ISSUANCE IS SLOW OVER THE NEXT WEEK ONE TRADER SAID MACY'S 145 COUPON SENIOR SUBORDINATED DEBENTURES MATURING IN 1998 ROSE TO 50 FROM 41 FRIDAY THE COMPANY'S 145 COUPON SUBORDINATED DEBENTURES DUE IN 2001 JUMPED TO 24 FROM ABOUT 18 WHILE THE ZEROCOUPON JUNIOR SUBORDINATED DEBENTURES OF 2006 ROSE TO 8 1/2 FROM 6 3/4 FRIDAY TRADERS SAID PRICES OF MUNICIPAL BONDS DECLINED AS THE MARKET'S FOCUS HAS SHIFTED TO THE GROWING LIST OF UNEXPECTEDLY STRONG US ECONOMIC REPORTS AND STUMBLING TREASURYS MUNIS STRENGTHENED IN DECEMBER WHEN MARKET PARTICIPANTS PRIMARILY WERE CONCERNED WITH GETTING SOME BUYING DONE BEFORE SUPPLY WAS PARED THIS MONTH BY BOND CALLS REDEMPTIONS AND SLOWER ISSUANCE WHILE SENTIMENT ABOUT MUNIS IS STILL POSITIVE DUE TO AN ANTICIPATED SUPPLY SHORTAGE EARLY THIS YEAR AND BECAUSE OF THE HIGHER FEDERAL INCOME TAXES THAT ARE EXPECTED TO BOOST DEMAND MARKET PARTICIPANTS SAY THE GROWING EVIDENCE OF US ECONOMIC STRENGTH IS NOW TAKING A TOLL ON MUNIS IN SECONDARY TRADING VALDEZ ALASKA'S 565 BONDS OF 2028 FINISHED 1/2 POINT LOWER FROM LATE THURSDAY AT 98 7/8 TO YIELD 570 THERE WAS VIRTUALLY NO MUNI TRADING DURING FRIDAY'S ABBREVIATED DEALINGS MUNIS WHICH USUALLY MOVE IN LOCK STEP WITH TREASURYS WERE ABLE TO STRENGTHEN INDEPENDENTLY ON A NUMBER OF OCCASIONS LAST MONTH BECAUSE OF VERY HEAVY DEMAND BUT WITH THE ECONOMY AND TREASURYS BACK IN THE SPOTLIGHT SOME MARKET PARTICIPANTS SAY AN INDEPENDENT MUNI CLIMB IN THE NEAR FUTURE IS UNLIKELY 9401040020 940104 JP MORGAN INDEX HAS NEW BASE NEW YORK THE JP MORGAN INDEX OF THE DOLLAR AGAINST 15 CURRENCIES WHICH APPEARS ON PAGE C1 OF THE WALL STREET JOURNAL EACH DAY HAS A NEW BASE PERIOD EFFECTIVE YESTERDAY THE BASE PERIOD IS 1990 THE PREVIOUS BASE PERIOD WAS 198082 THE INDEX IS TRADE WEIGHTED MEANING THE RELATIVE WEIGHTS OF FOREIGN CURRENCIES USED IN ITS COMPUTATION CORRESPOND TO EACH COUNTRY'S TRADE WITH THE US THE JP MORGAN INDEX OF THE DOLLAR WAS EXPANDED TO 18 CURRENCIES NOT INCLUDING THE US FROM 15 CURRENCIES ON JAN 1 THE CURRENCIES OF FINLAND GREECE AND PORTUGAL WERE ADDED AN ARTICLE TUESDAY INDICATED THE INDEX FOLLOWING A CHANGE IN THE BASE PERIOD WAS STILL BASED ON 15 CURRENCIES 9401040019 940104 WHO'S NEWS COMPUADD COMPUTER CORP COMPUADD COMPUTER CORP AUSTIN TEXAS RICHARD W KRAUSE WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS PERSONALCOMPUTER MAKER MR KRAUSE 42 YEARS OLD WILL RETAIN HIS TITLE AS PRESIDENT AS CEO HE SUCCEEDS BILL H HAYDEN 46 WHO RESIGNED IN NOVEMBER TO FORM A SOFTWARESERVICES COMPANY 9401040018 940104 BUSINESS BRIEF HEALTH & REHABILITATION PROPERTIES FACILITIES PURCHASED LEASED IN 60 MILLION TRANSACTION HEALTH & REHABILITATION PROPERTIES TRUST NEWTON MASS CLOSED A 60 MILLION TRANSACTION INVOLVING THE PURCHASE AND LEASE OF 26 NURSING HOMES AND SIX RETIREMENT APARTMENT COMPLEXES TO A NEW HEALTHCARE MANAGEMENT COMPANY THE TRANSACTION COMPLETES AN AGREEMENT ANNOUNCED IN SEPTEMBER THE COMPANY ACQUIRED 12 NURSING HOMES AND FIVE RETIREMENT COMPLEXES FOR 334 MILLION FROM MERITWEST A PRIVATE PENNSYLVANIA HEALTHCARE MANAGEMENT COMPANY AND WILL LEASE THEM TO PRIVATELY HELD COMMUNITY CARE OF AMERICA INC THE REMAINING FACILITIES WILL BE PURCHASED FROM MERITWEST BY COMMUNITY CARE FOR 266 MILLION WITH HEALTH & REHABILITATION FINANCING THE FACILITIES ARE SCATTERED ACROSS SIX STATES IOWA NEBRASKA COLORADO WYOMING KANSAS AND MISSOURI HEALTH & REHABILITATION PROPERTIES IS A REALESTATE INVESTMENT TRUST WITH 522 MILLION IN HEALTH CAREFACILITIES IN 27 STATES COMMUNITY CARE IS A NEW COMPANY WITH INVESTORS INCLUDING ROBERT ELKINS CHAIRMAN OF INTEGRATED HEALTH SERVICES INC AND THE DESAI VENTURE CAPITAL GROUP OF NEW YORK 9401040017 940104 BABBAGE'S 5WEEK SALES RESULTS DALLAS BABBAGE'S INC SAID ITS SALES IN THE FIVE WEEKS ENDED SATURDAY AT STORES OPEN MORE THAN A YEAR FELL 15 FROM A YEAR EARLIER THE COMPUTERSOFTWARE RETAILER'S TOTAL SALES FOR THE PERIOD ROSE 01 TO 643 MILLION FROM 642 MILLION THE COMPANY BLAMED THE DECLINE IN SAMESTORE SALES ON WEAK DEMAND FOR VIDEOGAME SYSTEMS AND SOFTWARE 9401040016 940104 CORPORATE FOCUS BARCLAYS SIGNALS CHANGE AS NONBANKER BECOMES CEO TAYLOR TO DRAW ON INDUSTRIAL BACKGROUND IN SETTING NEW COURSE FOR BANK BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON AS BARCLAYS PLC STRUGGLES TO RECOVER FROM HEAVY LOSSES CAUSED BY MOUNTAINS OF BAD DEBTS ITS APPOINTMENT OF A NONBANKER AS THE YOUNGESTEVER CHIEF EXECUTIVE OF A MAJOR BRITISH BANK IS EVIDENCE OF CHANGE NOT ONLY IN BARCLAYS ITSELF BUT THROUGHOUT THE WORLD'S BANKING INDUSTRY PEOPLE HAVE TO GET USED TO THE IDEA THAT THEY MAY WITHDRAW FROM CERTAIN AREAS OF BUSINESS AND REINFORCE OTHERS SAYS MARTIN TAYLOR THE 41YEAROLD FORMER CHAIRMAN AND CHIEF EXECUTIVE OF COURTAULDS TEXTILES PLC WHO TAKES UP HIS BARCLAYS POST TODAY AT BARCLAYS HE ADDS RATHER THAN TRYING TO DO EVERYTHING FROM BIGTICKET LENDING TO PROVIDING SAVINGS FACILITIES FOR SMALL INVESTORS WE HAVE TO DECIDE PRECISELY WHERE WE CAN BEAT THE COMPETITION AND BEAT VERY HARD BANKS HAVE SEEN EARNINGS IN THEIR TRADITIONAL AREAS OF BUSINESS DEPOSITTAKING AND LENDING ERODED BY COMPETITION ON INTEREST RATES AND LOSSES ON BAD LOANS NOW THEY ARE FACING NEW THREATS FROM A HOST OF NONBANK COMPETITORS RANGING FROM STORES AND AUTO MANUFACTURERS THAT ISSUE CREDIT CARDS TO FINANCIAL BOUTIQUES THAT OFFER INVESTMENT SERVICES TO MEET THESE CHALLENGES BANKS ARE TURNING TO NEW MANAGEMENT TECHNIQUES AND A NEW BREED OF EXECUTIVES BANKS WORLDWIDE ARE INCREASINGLY HIRING MANAGERS FROM INDUSTRY CITICORP TAPPED CHRISTOPHER J STEFFEN EASTMAN KODAK CO'S FORMER FINANCE CHIEF TO RUN ITS FINANCES IN THE US BELGIUM'S GENERALE BANK'S NEW CEO IS FERDINAND CHAFFART FORMERLY CEO OF BELGIAN CEMENT FIRM SA CIMENTERIES CBR INDUSTRY HAS EXPOSED MANAGERS TO BRUTAL CHANGE AND THE NEED TO DRIVE IT FORWARD IN A WAY THAT BANKING IS ONLY NOW BEGINNING TO DO SAYS ADRIAN LAJTHA A MANAGEMENT CONSULTANT AT ANDERSEN CONSULTING IN LONDON IN THE PAST BANKS WANTED THEIR TOP MANAGERS TO BE SKILLED AT MAKING LOANS AND THEORETICALLY AT LEAST AT MANAGING RISKS NOW THEY NEED PEOPLE WITH BROADER TRAINING SKILLED AT MANAGING CHANGE MR TAYLOR A FORMER FINANCIAL JOURNALIST HE EDITED THE FINANCIAL TIMES'S LEX COLUMN FROM 1978 TO 1982 WHO HAS SPENT THE PAST 11 YEARS IN INDUSTRY SEEMS TO FIT THAT DESCRIPTION HE GREW UP IN NORTHERN ENGLAND AND STUDIED CHINESE AT OXFORD UNIVERSITY AFTER A NUMBER OF YEARS IN JOURNALISM HE BECAME INTERESTED IN MANAGING COMPANIES RATHER THAN IN WRITING ABOUT THEM AND IN 1982 HE JOINED COURTAULDS PLC THEN A CHEMICALS AND TEXTILES CONGLOMERATE AT THE TIME CHEAP IMPORTS FROM ASIA WERE PUTTING BRITISH TEXTILE MANUFACTURERS OUT OF BUSINESS AS MANAGING DIRECTOR OF COURTAULDS TEXTILES THEN AS CEO FOLLOWING ITS SPINOFF FROM THE COURTAULDS GROUP IN 1990 MR TAYLOR CONTINUED A PROGRAM BEGUN IN THE 1970S OF CLOSING SOME BUSINESS AREAS AND ENHANCING OTHERS BETWEEN 1987 AND 1993 COURTAULDS TEXTILES' WORK FORCE FELL TO 21000 FROM 35000 AND ITS YARNSPINNING MILLS DROPPED TO FOUR FROM MORE THAN 20 MEANWHILE THE COMPANY INCREASED ITS ACTIVITIES IN SUCH AREAS AS LINGERIE AND HOME TEXTILES ALTHOUGH COURTAULDS SAID RECENTLY THAT 1993 EARNINGS WILL BE DOWN FROM 1992 LEVELS BECAUSE OF WEAK DEMAND IN CONTINENTAL EUROPE ANALYSTS PRAISE MR TAYLOR FOR HAVING MADE COURTAULDS FINANCIALLY MORE ROBUST THAN IT WAS A FEW YEARS AGO AT BARCLAYS MR TAYLOR IS EXPECTED TO SEEK SIMILAR CHANGES SOME ASPECTS OF THE BUSINESS ARE SIMPLY UNATTRACTIVE HE OBSERVES EVEN IF YOU SUCCEED IN REDUCING COSTS SUBSTANTIALLY ONE OF MR TAYLOR'S OBJECTIVES WILL BE TO REINFORCE BARCLAYS' FRANCHISE AS BRITAIN'S LEADING RETAIL BANK AND CREDITCARD ISSUER ANOTHER WILL BE TO STRENGTHEN BARCLAYS DE ZOETE WEDD THE BANK'S INVESTMENT BANKING ARM IF NECESSARY AT THE EXPENSE OF A REDUCTION IN ITS CORPORATE LENDING ACTIVITIES BARCLAYS ALREADY HAS TRANSFERRED ITS US ASIAN AND CONTINENTAL EUROPEAN CORPORATE BUSINESS TO BZW AND THERE HAS BEEN SPECULATION THAT IT MAY ULTIMATELY DO THE SAME IN BRITAIN WE HAVE TO CHANGE THE MINDSET OF SOME PEOPLE IN THE BANKING DIVISION AWAY FROM THE LARGECORPORATES BUSINESS MR TAYLOR SAYS BZW MIGHT EMPLOY THE CAPITAL BETTER WHAT HE ISN'T ABOUT TO DO HOWEVER IS TO TRY AT ALL COSTS TO KEEP BARCLAYS AHEAD OF ITS COMPETITORS IN TERMS OF ASSET SIZE OR GLOBAL REACH I AM UTTERLY INDIFFERENT TO SIZE HE SAYS COMPANIES NEED TO GROW SUSTAINABLE PROFITS NOT ASSETS AT BARCLAYS MR TAYLOR FACES A MUCH BIGGER CHALLENGE THAN AT COURTAULDS TEXTILES FOUNDED IN THE LATE 19TH CENTURY BY A GROUP OF QUAKER BANKING FAMILIES BARCLAYS HAS A HIERARCHICAL MANAGERIAL STRUCTURE ROOTED IN BRITISH REGIONAL COMMERCIAL BANKING WITH 71000 EMPLOYEES IN BRITAIN AND 101400 WORLDWIDE IT HAS OPERATIONS IN MORE THAN 70 COUNTRIES AND RANKED 19TH IN SIZE WORLDWIDE AT THE END OF 1992 WITH TOTAL ASSETS OF 223 BILLION A YEAR AGO BARCLAYS REPORTED A 242 MILLION 358 MILLION PRETAX DEFICIT FOR 1992 THE FIRST IN ITS 98YEAR HISTORY FOLLOWING MASSIVE PROVISIONS FOR LOAN LOSSES ALTHOUGH IT WAS BACK IN THE BLACK FOR THE FIRST HALF OF 1993 ITS RECOVERY WAS MARRED BY NEWS OF HEAVY LOSSES IN THE US IN CONTINENTAL EUROPE IT'S TRYING TO BUILD A FRENCH RETAIL NETWORK ON THE MODEL OF ITS SUCCESSFUL EXPANSION IN SPAIN AND PORTUGAL IN RECENT YEARS BUT THAT EFFORT HAS BEEN MARRED BY HEAVY LOSSES ON LOANS TO FRENCH COMPANIES IN THE PAST THREE YEARS BARCLAYS HAS CLOSED BRANCHES AND CUT JOBS OVERHAULED ITS LENDING PROCEDURES AND MOVED OUT OF A NUMBER OF UNPROFITABLE BUSINESS AREAS THE PROCESS HASN'T BEEN PAINLESS POWERFUL INDIVIDUALS AND PRESSURE GROUPS WITHIN THE BANK HAVE UNTIL RECENTLY PUT THE BRAKES ON MODERNIZATION EARLY IN 1993 INSTITUTIONAL SHAREHOLDERS UPSET AT THE BANK'S LOSSES FORCED CHAIRMAN AND CEO ANDREW BUXTON TO SPLIT HIS JOB INTO TWO POSITIONS THE RESULTING SEARCH FOR A NEW CEO LED TO MR TAYLOR ALTHOUGH THE APPROACH FROM BARCLAYS CAME OUT OF THE BLUE HE RECALLS IT WAS A TEMPTING OPPORTUNITY FOR ANYONE INTERESTED IN MANAGEMENT HE JOINED BARCLAYS' BOARD IN NOVEMBER AND WORKED PART TIME AT THE BANK UNTIL TODAY WHEN HE BEGINS AT BARCLAYS FULL TIME SITTING IN HIS SHIRTSLEEVES ON A SOFA IN HIS OFFICE MR TAYLOR SAYS THAT ONE OF THE KEYS TO WINNING SUPPORT FOR CHANGE WITHIN AN ORGANIZATION IS TO GIVE PEOPLE THE COURAGE TO BELIEVE IT POSSIBLE ONE OF HIS FIRST CHALLENGES WILL BE TO DEFUSE TENSIONS WITHIN THE GROUP NOTABLY BETWEEN ITS COMMERCIAL BANKING SIDE AND BZW BUT HE ALSO WILL HAVE TO CHANGE THE BANK'S MANAGERIAL STYLE BREAKING UP OLD FIEFDOMS AND GRAPPLING WITH AGGRESSIVE LABOR UNIONS YOU HAVE GOT TO MAKE PEOPLE FEEL BRAVE AND SHOW YOU'RE READY TO SHARE THE BURDEN HE ADDS EVEN IF IT MEANS MAKING THEM FEEL THAT IT'S PARTLY YOUR FAULT IF THINGS DON'T WORK OUT 9401040015 940104 MEXICO STOCKS TUMBLE ON FIGHTING IN CHIAPAS BY PAUL B CARROLL STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY AN UPRISING IN THE STATE OF CHIAPAS SHOCKED THE MEXICAN STOCK EXCHANGE INTO A 34 DROP AND ANALYSTS SAY THE FIGHTING HAS PROBABLY STARTED A SHORTTERM CORRECTION IN THE MARKET THE SECURITIES ANALYSTS SAID THE PEASANTS' ATTACKS ON GOVERNMENT FACILITIES IN CHIAPAS HAVE MAINLY PROVIDED AN EXCUSE FOR INVESTORS TO TAKE PROFITS FOLLOWING A 42 RUNUP IN THE MEXICAN MARKET IN THE FOURTH QUARTER YESTERDAY THE DOW JONES MEXICO INDEX PLUNGED 621 POINTS TO 17897 THEY ADD THAT THE PROFITTAKING COULD KNOCK THE MARKET DOWN ANOTHER SEVERAL PERCENTAGE POINTS STILL THEY REMAIN BULLISH ON MEXICAN STOCKS BECAUSE THEY BELIEVE THE ECONOMY WILL TURN AROUND THIS YEAR AND THAT MEXICAN STOCKS TRADING AT 141 TIMES EXPECTED 1994 EARNINGS REMAIN CHEAP COMPARED WITH STOCKS IN OTHER EMERGING MARKETS SUCH AS CHILE ARGENTINA AND MANY ASIAN COUNTRIES THE ANALYSTS DISMISSED ANY CONCERNS THAT THE BLOODSHED THAT BEGAN OVER THE WEEKEND WOULD CREATE POLITICAL INSTABILITY IN MEXICO THE DECLINES IN STOCK PRICES COULD LAST A FEW DAYS MAYBE EVEN A FEW WEEKS BUT THEN WE WOULD SEE ANOTHER ENORMOUS BUYING OPPORTUNITY SAID GEOFFREY DENNIS HEAD OF EMERGING MARKETS EQUITY RESEARCH AT BEAR STEARNS & CO THE ANALYSTS SAID THEY WOULD HAVE BEEN MORE CONCERNED ABOUT THE EXTENT OF THE DROP IF IT HADN'T OCCURRED IN SUCH LIGHT POSTHOLIDAY TRADING VOLUME TOTALED ONLY ABOUT HALF THE NORMAL 125 MILLION TO 150 MILLION SHARES IT'S NOT LIKE PEOPLE ARE PILING OUT OF THESE STOCKS SAID JAY PELOSKY LATIN AMERICAN STRATEGIST AT MORGAN STANLEY THE EFFECT OF THE FIGHTING ON THE STOCK MARKET'S PERFORMANCE MAY ALSO HAVE BEEN EXAGGERATED BECAUSE IT CAME RIGHT AFTER THE FIRST OF THE YEAR THE ANALYSTS SAID THEY SAID THAT MONEY MANAGERS WHOSE YEAREND INVESTMENT POSITIONS ARE SCRUTINIZED BY INVESTORS HAVE MUCH MORE FREEDOM TO FOLLOW THEIR OWN INSTINCTS EARLY IN THE NEW YEAR AND MANY MONEY MANAGERS HAVE BEEN EXPECTING A CORRECTION EVEN THOUGH BEWITCHED INVESTORS HAVE BEEN CLAMORING TO GET INTO MEXICAN STOCKS NO ONE IS GOING TO BLAME YOU IF YOU TAKE SOME PROFITS NOW MR DENNIS OF BEAR STEARNS SAID THE ANALYSTS ADD THAT THEY THINK A BREATHER WOULD BE GOOD FOR THE MEXICAN MARKET BECAUSE IT HASN'T EVEN PAUSED FOR AIR SINCE RIGHT BEFORE THE VOTE IN THE US CONGRESS ON THE NORTH AMERICAN FREE TRADE AGREEMENT SINCE THE GOREPEROT DEBATE CONVINCED MEXICAN INVESTORS THAT NAFTA WOULD WIN APPROVAL THE MARKET HAS CLIMBED RAPIDLY AND STEADILY ONLY UNCERTAINTY ABOUT THE MEXICAN ECONOMY WOULD CREATE CONCERN THAT THE MEXICAN STOCK MARKET MIGHT BE IN FOR A BIG DECLINE THE ANALYSTS SAID AT THE MOMENT THE GOVERNMENT IS PREDICTING SOLID 3 GROWTH THIS YEAR A TURNAROUND FROM MINIMAL GROWTH IN 1993 THE THIRD QUARTER OF WHICH INCLUDED THE FIRST CONTRACTION IN THE MEXICAN ECONOMY SINCE 1987 AND ANALYSTS DON'T SEE ECONOMIC PROBLEMS DEVELOPING SOME ARE EVEN MORE OPTIMISTIC THAN THE GOVERNMENT BEAR STEARNS FOR INSTANCE EXPECTS THE ECONOMY TO GROW 4 WHICH IT THINKS WILL PRODUCE A MARKET GAIN OF AT LEAST 25 THIS YEAR ON TOP OF LAST YEAR'S 48 GAIN THE ANALYSTS ALSO SAID THEY WOULD WORRY ABOUT THE STOCK MARKET IF THE PROBLEMS IN CHIAPAS DEVELOPED INTO AN OPPORTUNITY FOR MEXICO'S LEFTIST PARTY IN THE PRESIDENTIAL ELECTIONS THIS SUMMER CUAUHTEMOC CARDENAS THE CANDIDATE FOR THE LEFTIST PARTY OF THE DEMOCRATIC REVOLUTION HAS SAID HE WOULD WANT TO RENEGOTIATE PARTS OF NAFTA AND GENERALLY SCARES THE BUSINESS COMMUNITY BUT THE ANALYSTS ALSO SAID THAT THE CHIAPAS FIGHTING WOULD HAVE TO GET MUCH WORSE BEFORE POVERTY WOULD BECOME A BIG ENOUGH ISSUE FOR MR CARDENAS TO THREATEN THE RULING PARTY'S CANDIDATE LUIS DONALDO COLOSIO 9401040014 940104 WHO'S NEWS A PRINCE OF RETAILING STRIVES TO BE A KING BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH STYLE AND SWAGGER ALLEN I QUESTROM IS OUT TO BUILD THE ULTIMATE RETAILING EMPIRE FOR THE 1990S MR QUESTROM THE 53YEAROLD CHAIRMAN OF FEDERATED DEPARTMENT STORES INC STUNNED THE RETAIL INDUSTRY BY ANNOUNCING ON SUNDAY THE ACQUISITION OF A HUGE CHUNK OF RH MACY & CO'S DEBT THOUGH HIS PLAN TO EVENTUALLY MERGE THE TWO CHAINS FACES NUMEROUS OBSTACLES INCLUDING POSSIBLE RESISTANCE FROM MACY HE IS BRAZENLY CONFIDENT THAT HIS STRATEGIC VISION IS THE KEY TO POSITIONING BOTH RETAILING POWERHOUSES FOR THE FUTURE MR QUESTROM IS KNOWN IN THE INDUSTRY FOR HIS FLASHY PERSONAL STYLE AND EGO TO MATCH AS CHIEF EXECUTIVE OF NEIMAN MARCUS IN THE LATE 1980S HE PUT HIMSELF IN THE TONY DALLAS RETAILER'S CATALOG DANCING ACROSS AN ELECTRONIC KEYBOARD IN 1990 JUST MONTHS AFTER TAKING OVER AS FEDERATED'S CHAIRMAN AND CHIEF EXECUTIVE HE POSED WITH HIS WIFE FOR A SPLASHY MAGAZINE PHOTO SHOOT IN THE WINDOW OF BLOOMINGDALE'S 59TH STREET STORE IN NEW YORK WITH DEPARTMENT STORES NATIONWIDE MIRED IN RECESSION AND FEDERATED IN BANKRUPTCY MR QUESTROM WORE BLACK TIE AND TOP HAT BUT ADMIRERS SAY HE MIXED PLENTY OF SUBSTANCE WITH HIS STYLE TURNING AROUND MORIBUND STORES WITHIN THE 219STORE FEDERATED CHAIN WITH REVAMPED MERCHANDISE IMPROVED CUSTOMER SERVICE AND A SENSE OF RETAILING AS THEATER HE IS CLEARLY ONE OF THE BEST RETAILERS AND POSSIBLY ONE OF THE SEXIEST GUYS IN RETAILING TODAY BUT HE'S ALSO AN UNMITIGATED EGOMANIAC SAYS ALAN MILLSTEIN EDITOR AND PUBLISHER OF FASHION NETWORK REPORT A RETAIL INDUSTRY NEWSLETTER MR QUESTROM ALSO IS ONE OF THE HIGHESTPAID EXECUTIVES IN RETAILING HIS CONTRACT WITH FEDERATED CALLS FOR HIM TO RECEIVE 12 MILLION OVER FIVE YEARS INCLUDING A 2 MILLION SIGNING BONUS WITH STOCK OPTIONS TIED TO FEDERATED'S PERFORMANCE MY VALUE IS BASED ON HOW WELL WE DO ON THE BOTTOM LINE HOW WELL WE SERVE OUR CUSTOMERS AND THE RETURN ON INVESTMENT TO OUR SHAREHOLDERS HE SAYS ALL ELSE IS IRRELEVANT AS MR QUESTROM SEES IT MERGING MACY AND FEDERATED COULD CREATE A MUCH MORE EFFICIENT 14 BILLION COMPANY IN THE SHORT TERM IT'S A WINWIN FOR CREDITORS IN THE LONG TERM IT'S A TERRIFIC DEAL FOR OUR SHAREHOLDERS HE REFERS TO THE MERGER AS A CRITICAL TRANSACTION THAT WOULD ALLOW THE NEW COMPANY TO GIVE SHOPPERS THE RIGHT PRODUCT AT AFFORDABLE COMPETITIVE PRICES IN LARGE PART MR QUESTROM IS PITCHING THE MERGER AS A COSTSAVING MEASURE THAT WOULD LINK OPERATIONS OF FEDERATED STORES SUCH AS BLOOMINGDALE'S AND RICH'S WITH BULLOCK'S AND I MAGNIN OWNED BY MACY FEDERATED SAYS IT BOUGHT ITS STAKE IN MACY WITH THE ULTIMATE OBJECTIVE OF CREATING A SINGLE NATIONWIDE MULTIBILLIONDOLLAR DEPARTMENTSTORE OPERATION WITH THE POTENTIAL FOR GREATLY ENHANCED OPERATING EFFICIENCIES MR QUESTROM HAS TAKEN SIGNIFICANT STEPS TO CUT COSTS AT FEDERATED STREAMLINING AND CONSOLIDATING ITS FARFLUNG BUYING OPERATIONS WHILE EXECUTIVES FROM VARIOUS CHAINS TRADITIONALLY ACTED LIKE FIEFDOMS STOCKING THEIR STORES AS THEY SAW FIT MR QUESTROM INSTITUTED A SYSTEM OF TEAM BUYING COMMITTEES ORGANIZED AROUND TYPES OF MERCHANDISE THE RESULT ACCORDING TO ISAAC LAGNADO A PRINCIPAL WITH NEW YORK CONSULTANT TACTICAL RETAIL SOLUTIONS IS THAT FEDERATED CAN NEGOTIATE MORE EFFECTIVELY WITH VENDORS GETTING A BETTER PRICE AND TERMS BY ADDING MACY MR LAGNADO CONTINUED HE COULD CREATE A DEPARTMENTSTORE CHAIN THAT WOULD BE COMPARABLE TO THE CLOUT OF PENNEY'S OR SEARS AND EVEN THE DISCOUNTERS SUCH AS WALMART THAT WOULD GIVE THEM CLOUT WHEN IT COMES TO BUYING REAL ESTATE AND MERCHANDISE MR QUESTROM HAS SPENT HIS CAREER IN RETAILING STARTING IN 1965 AS AN EXECUTIVE TRAINEE AT ABRAHAM & STRAUS A FEDERATED UNIT AFTER GRADUATING FROM BOSTON UNIVERSITY BY 1980 MR QUESTROM HAD RISEN TO CHAIRMAN OF THE ATLANTABASED RICH'S STORE CHAIN DURING HIS TENURE THE FEDERATED DIVISION WENT FROM THE LEAST PROFITABLE TO THE MOST IN 1984 FEDERATED NAMED HIM CHAIRMAN AND CHIEF EXECUTIVE OF ITS LOS ANGELESBASED BULLOCK'S INDUSTRY EXECUTIVES SAY HE TURNED THE HERETOFORE SLEEPY CALIFORNIA DEPARTMENT STORE CHAIN INTO THE BLOOMINGDALE'S OF THE WEST HE CUT ADMINISTRATIVE STAFF HIRED MORE SALES PEOPLE AND SIGNIFICANTLY UPDATED THE STORES' MERCHANDISE BULLOCK'S HAD A PATINA OF GLAMOUR WITH PLENTY OF DESIGNER GOODS AND FRAGRANCES BUT AT THE SAME TIME PLENTY OF MODERATEPRICED MERCHANDISE THAT BROUGHT IN LOTS OF PROFIT SAYS MR MILLSTEIN THE NEWSLETTER EDITOR ADDS PETER N SCHAEFFER A PARTNER OF JOHNSON REDBOOK SERVICE A RETAIL ANALYSIS FIRM HE BROUGHT BULLOCK'S A SENSE OF THEATER AND EXCITEMENT HE ADDED LOTS OF NEW PRODUCT AND DESIGNERS BUT MR QUESTROM WATCHED WITH DISPLEASURE IN 1988 AS THE COMPANY HE HELPED TO BUILD WAS TAKEN OVER BY CANADIAN DEVELOPER ROBERT CAMPEAU MR QUESTROM ALONG WITH OTHER TOP FEDERATED EXECUTIVES QUIT THAT MAY ONLY A MONTH AFTER THE CAMPEAU DEAL CLOSED LOADED WITH DEBT FROM THE TAKEOVER AND HURT BY A NATIONAL RECESSION FEDERATED FILED FOR BANKRUPTCY PROTECTION IN JANUARY 1990 MR CAMPEAU WAS REMOVED FROM THE COMPANY'S RETAILING OPERATIONS AND IN FEBRUARY FEDERATED ASKED MR QUESTROM TO RETURN TO RESURRECT THE COMPANY MR QUESTROM SINCE HAS THROWN HIMSELF INTO IMPROVING PRODUCT SELECTION AS WELL AS SPENDING MORE THAN OTHER RETAILERS TO IMPROVE THE LOOK OF FEDERATED STORES IN FEBRUARY 1992 THE CHAIN EMERGED FROM CHAPTER 11 BANKRUPTCY PROTECTION UNLIKE OTHER TOP RETAIL CHAIN EXECUTIVES MR QUESTROM ACTS AS FEDERATED'S TOP MERCHANT HAVING INPUT INTO DECISIONS ON STORE MERCHANDISE INVENTORY AND SELECTION AS WELL AS PRICES HE LEAVES THE HEAVY OPERATIONS AND FINANCIAL MATTERS TO JAMES ZIMMERMAN CHIEF OPERATING OFFICER AND RONALD TYSOE VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER TO STAY IN TOUCH MR QUESTROM SAYS HE SPENDS TWO TO THREE DAYS A WEEK WALKING INTO STORES TALKING WITH CUSTOMERS AND DIVISION EXECUTIVES A TRUE MERCHANT HAS TO BE SENSITIVE TO WHAT'S GOING ON HE SAYS WHILE MANY DEPARTMENT STORES HAVE FOCUSED TOO HEAVILY ON APPAREL IN RECENT YEARS AND BEEN CAUGHT SHORT AS SPENDING HAS SLOWED MR QUESTROM MOVED SEVERAL YEARS AGO TO RAISE THE LEVEL OF HOME FURNISHINGS IN THE INVENTORY MIX HE'S A BELIEVER IN THE HOME AS AN INTEGRAL PART OF THE DEPARTMENT STORE SAYS TACTICAL'S MR LAGNADO POSSIBLY HIS MOST NOTABLE CONTRIBUTION TO FEDERATED HAS BEEN TO TAKE A HANDSON APPROACH TO IMPROVING CUSTOMER SERVICE MR QUESTROM BROUGHT IN OUTSIDE CONSULTANTS TO STUDY PROBLEMS AT THE STORE LEVEL ESPECIALLY AT BLOOMINGDALE'S HE HAS PUSHED FOR FRIENDLIER SERVICE ENCOURAGING THE HIRING OF TEACHERS FORMER AIRLINEINDUSTRY WORKERS AND EVEN THOSE IN SHOW BUSINESS BECAUSE HE BELIEVES THEY ARE GREGARIOUS AND LIKE TO HELP OTHERS STILL SOME INDUSTRY OBSERVERS BELIEVE THAT DESPITE THE PROGRESS MR QUESTROM HAS MADE WITH FEDERATED RECENT RESULTS FROM HIS STORES HAVE BEEN LACKLUSTER FEDERATED'S SAMESTORE SALES AN IMPORTANT RETAIL INDICATOR HAVE BEEN LESS THAN SPECTACULAR WHILE MANY DEPARTMENTSTORE COMPETITORS HAVE GENERATED COMPARABLESTORE SALES GAINS OF 4 OR BETTER IN RECENT MONTHS FEDERATED'S SAMESTORES SALES IN THE THIRD QUARTER ENDED OCT 30 WERE VIRTUALLY FLAT FOR THE FIRST 39 WEEKS OF 1993 ENDED OCT 30 FEDERATED'S COMPARABLESTORE SALES INCREASED 18 FROM A YEAR EARLIER BUT FEDERATED EXPECTS GOOD NEWS FROM THE CRUCIAL CHRISTMAS PERIOD A SPOKESWOMAN SAID THE COMPANY EXPECTS TO REPORT STRONG SALES FOR DECEMBER ON THURSDAY SHE SAID FEDERATED EXPECTS TO REPORT A SAMESTORE SALES GAIN THAT IS MORE THAN TWICE THE EXPECTED 1 TO 2 GAIN FOR THE CHRISTMAS SEASON 9401040013 940104 LETTERS TO THE EDITOR SCIENCE AND RELIGION AND RATIONAL INQUIRY GEORGE M MARSDEN COMPLAINS ABOUT THE ACADEMIC PREJUDICE AGAINST RELIGIOUSLY INFORMED SCHOLARS RELIGIOUS PROFESSORS ARE THE LAST TABOO DEC 22 BUT HIS ARTICLE ILLUSTRATES WHY THE PREJUDICE HAS A RATIONAL BASIS HE ATTACKS THE AUTHORITY OF SCIENCE BECAUSE IT OPERATES WITHIN ASSUMPTIONS THAT ARE NOT THEMSELVES ESTABLISHED ON SCIENTIFIC GROUNDS AN ARGUMENT ALSO MADE BY THE NIHILISTIC LEFT TO THE EXTENT THAT THIS IS TRUE IT INVITES FURTHER RATIONAL INQUIRY TO PROVE OR DISPROVE THOSE ASSUMPTIONS IT IS NOT AN INVITATION TO SUBSTITUTE ARBITRARY PROPOSITIONS AS A MATTER OF FAITH AND HIS ARGUMENT THAT BELIEF IN A CREATOR IS ACCEPTABLE BECAUSE IT CANNOT BE DISPROVEN IS A CLASSIC EXAMPLE OF THE FALLACY OF APPEALING TO IGNORANCE PROF MARSDEN REFERS TO ACADEMICS SUBORDINATING RELIGION TO WESTERN SCIENTIFIC STANDARDS OF ANALYSIS IF ONLY THEY WOULD AND INCLUDE SCIENCE WHILE THEY'RE ABOUT IT ANALYSIS MIGHT SUGGEST THAT SCIENCE AND RELIGION HAVE IMPORTANT THINGS IN COMMON BOTH INVOLVE A SEARCH FOR TRUTH BOTH INVOLVE THE EXERCISE OF FAITH THE EXPERIMENTAL METHOD IN SCIENCE RESTS ON FAITH IN THE CONSTANCY OF NATURE AND THE CREDIT FOR THE FIRST PROPOSAL TO USE THE EXPERIMENTAL METHOD AS A MEANS OF INVESTIGATION BELONGS NOT TO SCIENCE BUT TO RELIGION I KINGS 182040 MOREOVER IN THE ABSENCE OF ANY RATIONAL MATERIALISTIC EXPLANATION OF THE ORIGIN OF LIFE A DETACHED SCIENTIST SHOULD SURELY BE WILLING TO CONSIDER NONMATERIALISTIC EXPLANATIONS 9401040012 940104 INTERNATIONAL BRIEF MULTIPURPOSE HOLDINGS BHD LOTTERY UNIT TO REPORT RISE OF 29 IN 1993 PRETAX PROFIT MALAYSIAN CONGLOMERATE MULTIPURPOSE HOLDINGS BHD SAID ITS MAGNUM CORP UNIT EXPECTS TO REPORT A 29 INCREASE IN PRETAX PROFIT FOR 1993 MAGNUM WHICH RUNS LOTTERIES SAID IT EXPECTS TO REPORT PRETAX PROFIT EXCEEDED 400 MILLION MALAYSIAN DOLLARS US1485 MILLION UP FROM M3102 MILLION A YEAR EARLIER MULTIPURPOSE HOLDINGS' CORPORATE CHIEF LIM THIAN KIAT ATTRIBUTED THE SHARP RISE TO HEAVIER BETTING VOLUMES RECORDED AT MAGNUM'S VARIOUS NUMBERSBETTING OPERATIONS AND TO THE BUOYANT MALAYSIAN ECONOMY MR LIM EXPECTS 1994'S PROFIT TO EXCEED THAT OF 1993 BUT THE PERCENTAGE GAIN MIGHT BE SMALLER BECAUSE OF THE RECENTLY ANNOUNCED 2 INCREASE IN MALAYSIA'S GAMING TAX TO 7 FROM 5 TO COUNTER THE DRAG ON PROFIT FROM THE TAX INCREASE MAGNUM INTENDS TO START PROMOTIONAL CAMPAIGNS TO LURE MIDDLEINCOME EARNERS TO BUY LOTTERY TICKETS 9401040010 940104 THAILAND'S BOOMING HAIRCARE MARKET RANG UP 37 MILLION IN '93 ADVERTISING BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND THE WAR IS ON FOR THE HEARTS AND HEADS OF THAI CONSUMERS IN THE FIRST 11 MONTHS OF 1993 MAKERS OF SHAMPOOS AND CONDITIONERS SPENT 37 MILLION ON ADVERTISING IN THAILAND SECOND ONLY TO REALESTATE DEVELOPERS AND UP MORE THAN 40 FROM A YEAR EARLIER AMONG THE PROTAGONISTS PROCTER & GAMBLE THAILAND LTD A SUBSIDIARY OF PROCTER & GAMBLE CO HAS SPENT 5 MILLION TO LAUNCH ITS VIDAL SASSOON HAIRCARE PRODUCTS IN 1993'S LARGEST SINGLE ADVERTISING CAMPAIGN IN THAILAND KANNIKAR CHARITAPORN MARKETING DIRECTOR FOR LEVER BROTHERS IN THAILAND SAYS THE RIVALRY WILL ONLY INTENSIFY THIS YEAR IT IS ESCALATING SHE SAYS THAILAND'S 57 MILLION PEOPLE ARE COMPULSIVE ABOUT CLEANLINESS OFTEN SHOWERING TWO OR THREE TIMES A DAY THAT AND THE COUNTRY'S GROWING AFFLUENCE HAVE GIVEN SHAMPOO AND CONDITIONER MAKERS CAUSE TO FLOOD THE MARKET IN THE PAST YEAR LEVER BROTHERS FOR INSTANCE HAS INTRODUCED ITS ORGANICS BRAND SHAMPOOS AND CONDITIONERS TO COMPETE IN THE HIGH END OF THE MARKET WITH P&G'S VIDAL SASSOON LINE AND COLGATE'S OPTIMA LINE SUPERMARKETS HAVE ADDED SHELF SPACE TO ACCOMMODATE ALL THE NEW BRANDS INCLUDING SOME INNOVATIVE PRODUCTS THAT ADD NEW MEANINGS TO THE DEFINITION OF HAIR CARE LEVER BROTHERS HAS BROUGHT OUT WHAT IT CALLS HAIR MASCARA A STYLING GEL APPLIED WITH A BRUSH THAT RESEMBLES A GIANT MASCARA BRUSH AND SHAMPOO WITH A BUILTIN HOTOILSTYLE TREATMENT THAT DOESN'T HAVE TO BE HOT YOU JUST HAVE TO KEEP COMING UP WITH A NEW PRODUCT OR A BETTER PRODUCT SAYS EDUARDO T CADIZ JR MARKETING DIRECTOR FOR P&G IN THAILAND ONE ADVERTISING EXECUTIVE CALLS IT THE SPAGHETTI STRATEGY YOU THROW EVERYTHING AGAINST THE WALL AND SEE WHAT STICKS MANY OF THE NEW BRANDS ARE NEARLY TWICE THE PRICE OF ESTABLISHED BRANDS MARKETED BY LEVER BROTHERS AND KAO BUT THAT HASN'T HAMPERED SALES PURVEYORS OF THE NEW PRODUCTS SAY MARKETING MAVENS SAY NEW PRODUCTS BENEFIT IN THAILAND BECAUSE THAIS ARE MORE EAGER THAN MANY OTHER NATIONALITIES TO TRY THEM AND IN THE HAIRCARE FIELD THAT TENDENCY IS HELPED BY THE WIDESPREAD BELIEF AMONG YOUNG WORKING WOMEN THAT THEY SHOULD CHANGE SHAMPOO BRANDS REGULARLY IF YOU USE THE SAME KIND FOR TOO LONG IT WILL RUIN YOUR HAIR I HAVE A FRIEND WHO IS A DOCTOR AND HE TOLD ME THIS SAYS ANUPORN THONGSARN A 27YEAROLD SECRETARY AS SHE SHOPS WITH A COLLEAGUE THE DOWNSIDE MAY BE LACK OF BRAND LOYALTY BUT ADVERTISERS AREN'T COMPLAINING 9401040009 940104 MONDAY'S MARKETS BONDS SLUMP ON NEW GAINS IN THE ECONOMY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES TUMBLED AMID FURTHER EVIDENCE OF AN IMPROVING ECONOMY DRIVING LONGTERM INTEREST RATES TO THEIR HIGHEST LEVELS SINCE MIDAUGUST STOCK PRICES WERE MIXED AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE CREPT UP 251 POINTS TO 375660 STANDARD & POOR'S 500STOCK INDEX LOST 101 TO 46544 AND THE NASDAQ COMPOSITE INDEX SANK 604 TO 77076 ANALYSTS SAID THE BOND MARKET'S DECLINE REFLECTED A CONTINUING ADJUSTMENT AMONG TRADERS TO A STRONGER ECONOMIC ENVIRONMENT THE LATEST SIGNS OF THE IMPROVING ECONOMY WERE BETTERTHANEXPECTED REPORTS ON MANUFACTURING ACTIVITY AND CONSTRUCTION SPENDING ANALYSTS SAID SOME OF THE SELLING IN THE BOND MARKET WAS DUE TO TRADERS POSITIONING THEMSELVES AHEAD OF FRIDAY'S RELEASE OF DECEMBER EMPLOYMENT DATA WHICH ARE EXPECTED TO SHOW A FURTHER BRIGHTENING OF THE JOBS PICTURE RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH SAID INFLATIONWARY BOND TRADERS ALSO RESPONDED NEGATIVELY TO AN UPTICK IN COMMODITIES PRICES BOTH OIL AND GOLD PRICES SURGED MR BERNER THINKS THE STRONG ECONOMIC GROWTH SEEN IN THE FOURTH QUARTER WILL COOL SOMEWHAT THIS QUARTER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 017 TO 11090 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2692 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1318 ISSUES FELL AND 902 ROSE BOND PRICES PLUNGED THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST MORE THAN ONE POINT OR OVER 10 FOR EACH 1000 FACE AMOUNT TO YIELD 642 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17435 MARKS AND 11261 YEN COMPARED WITH 17382 MARKS AND 11180 YEN FRIDAY 9401040008 940104 BUSINESS BRIEF SPI PHARMACEUTICALS INC PACT SET TO BUY UP TO 51 OF HUNGARIAN DRUG MAKER SPI PHARMACEUTICALS INC COSTA MESA CALIF SAID IT AGREED WITH THE HUNGARIAN GOVERNMENT TO ACQUIRE AS MUCH AS A 51 STAKE IN ALKALOIDA A STATEOWNED DRUG AND CHEMICAL MAKER TERMS OF THE PACT WEREN'T DISCLOSED A SPOKESMAN FOR SPI WHICH IS 42OWNED BY ICN PHARMACEUTICALS INC SAID THE PACT CALLS FOR SPI TO ACQUIRE A 30 ALKALOIDA STAKE WITH AN OPTION TO BUY A CONTROLLING INTEREST COMPLETION OF THE TRANSACTION IS EXPECTED IN SEVERAL MONTHS CONTINGENT UPON VARIOUS CONDITIONS ICN SAID ALKALOIDA HAS ANNUAL SALES OF ABOUT 90 MILLION TWOTHIRDS COMING FROM OUTSIDE HUNGARY THE COMPANY MAKES 60 PRODUCTS INCLUDING MORPHINE AND CARDIOVASCULAR DRUGS WHICH ARE SOLD IN THE US AND ABOUT 80 OTHER COUNTRIES SPI'S PRESIDENT ADAM JERNEY A NATURALIZED US CITIZEN WHO WAS BORN IN HUNGARY SAID THE INVESTMENT WILL STRENGTHEN THE DRUG MAKER'S EXPANSION INTO EASTERN EUROPE AND AROUND THE WORLD ROUGHLY HALF OF SPI'S SALES OF 256 MILLION FOR THE FIRST NINE MONTHS OF 1993 WERE FROM ITS YUGOSLAV SUBSIDIARY 9401040007 940104 WHAT'S NEWS BUSINESS AND FINANCE R H MACY REACTED COOLLY TO FEDERATED DEPARTMENT STORES' PROPOSAL FOR A MERGER A SIGN THAT THE RETAIL GIANT MAY GO TO GREAT LENGTHS TO STAY INDEPENDENT MEANWHILE KEY CREDITORS HAVE BEEN APPROACHING POTENTIAL SUITORS IN HOPES OF SPEEDING MACY'S EMERGENCE FROM BANKRUPTCY PROCEEDINGS THE INTEREST REFLECTS THE FACT THAT DEPARTMENT STORES ALL BUT WRITTEN OFF A COUPLE OF YEARS AGO HAVE BEEN SHOWING SIGNS OF LIFE LATELY FEDERATED'S ROLE IN MACY'S BANKRUPTCY PROCEEDINGS MAY BE SHARPLY LIMITED PAST CASES SHOW BANKRUPTCY JUDGES CAN EXERCISE BROAD POWERS TO KEEP ANY SINGLE CREDITOR FROM CONTROLLING A CORPORATE REORGANIZATION OR ADVANCING ITS INTERESTS OVER OTHERS' MANUFACTURING ACTIVITY SHOT UP IN DECEMBER TO ITS HIGHEST LEVEL IN NEARLY A YEAR A SURVEY OF PURCHASING MANAGERS SHOWS PRICES FELL FOR THE FOURTH CONSECUTIVE MONTH IN DECEMBER SUGGESTING THAT INFLATION IS STILL UNDER CONTROL SEPARATELY CONSTRUCTION SPENDING INCREASED 12 IN NOVEMBER BOND PRICES TUMBLED AMID FURTHER SIGNS OF AN IMPROVING ECONOMY THE TREASURY'S 30YEAR ISSUE FELL MORE THAN A POINT ITS YIELD WAS 642 THE DOW INDUSTRIALS ROSE 251 TO 375660 TOYS R US NAMED MICHAEL GOLDSTEIN CEO ENDING YEARS OF SPECULATION ABOUT WHO WOULD SUCCEED CHARLES LAZARUS ITS FOUNDER AND CHIEF ARCHITECT LAZARUS HAS NO IMMEDIATE PLANS TO RETIRE BUT THE APPOINTMENT PUTS GOLDSTEIN IN LINE TO BE THE NEXT CHAIRMAN JOHNSON & JOHNSON RECEIVED FDA APPROVAL FOR ITS SCHIZOPHRENIA DRUG BUT THE FDA FORBADE THE FIRM'S JANSSEN UNIT TO CLAIM RISPERDAL IS SUPERIOR TO OTHER DRUGS CALLING JANSSEN'S RESEARCH INCONCLUSIVE ON THAT POINT WARNERLAMBERT'S PARKEDAVIS UNIT WON FDA APPROVAL OF ITS ANTICONVULSANT EPILEPSY DRUG NEURONTIN MEXICO STOCKS FELL 34 AMID AN UPRISING IN THE STATE OF CHIAPAS ANALYSTS SAY THE CONFLICT HAS PROBABLY STARTED A SHORTTERM CORRECTION ALLOWING INVESTORS TO TAKE PROFITS FOLLOWING A 42 RUNUP IN THE MEXICAN MARKET IN THE FOURTH QUARTER AND DISMISSED CONCERNS ABOUT POLITICAL INSTABILITY THE TAXPAYERS' TAB FOR THE F22 FIGHTER JET COULD GROW MORE THAN 700 MILLION AS RECENT AND LIKELY NEW FUNDING CUTS STRETCH OUT THE DEVELOPMENT PROCESS AT LOCKHEED AND BOEING GROSS BOXOFFICE SALES AT US MOVIE THEATERS LAST YEAR HIT 524 BILLION NARROWLY BEATING THE 1989 RECORD BUT HOLLYWOOD WASN'T CROWING BECAUSE THE FEAT CAME ON THE SUCCESS OF JUST ONE FILM JURASSIC PARK DISNEY'S EISNER DIDN'T GET A BONUS LAST YEAR FOR THE FIRST TIME SINCE HE CAME TO THE FIRM NEARLY A DECADE AGO REFLECTING DISNEY'S FINANCIAL TROUBLE HIS FISCAL 1992 BONUS WAS 67 MILLION SEARS ROEBUCK IS EXPECTED TO ANNOUNCE IT WILL BE THE EXCLUSIVE SPONSOR OF ROCK STAR PHIL COLLINS'S US TOUR IN AN EFFORT TO REACH A NEW AUDIENCE GM SOUNDED A NOTE OF CAUTION ABOUT 1994 VEHICLE SALES ITS CHIEF ECONOMIST PREDICTED AN INCREASE BUT LESS OF ONE THAN HIS COHORTS DID AT RIVAL US CAR MAKERS SEPARATELY CHRYSLER PRICED ITS NEW NEON SMALL CAR AT 8975 WELL BELOW COMPETING MODELS A PROPOSED RULE TO COMBAT MUNICIPALBOND DEALERS' POLITICAL GIFTS TO STATE AND LOCAL OFFICIALS WON'T COVER CANDIDATES RUNNING FOR FEDERAL OFFICE BONDS LEHMAN BROTHERS TREASURY INDEX 546632 OFF 4631 COMMODITIES OIL 1456 A BARREL UP 39 CENTS DOW JONES FUTURES INDEX 14227 OFF 054 SPOT INDEX 12808 UP 048 DOLLAR 11261 YEN UP 081 17435 MARKS UP 00053 9401040006 940104 BUSINESS BRIEF BOUYGUES SA CONSTRUCTION CONCERN UNIT WILL BUY STRUCTAL EUROPE SMAC ACIEROID SA A UNIT OF BOUYGUES SA A FRENCH PUBLIC WORKS AND CONSTRUCTION GROUP SAID IT IS EXPANDING ITS OPERATIONS WITH THE ACQUISITION OF THE STRUCTAL EUROPE GROUP TERMS WEREN'T DISCLOSED SMAC ACIEROID SAID THE OPERATION WILL MAKE IT FRANCE'S LEADING COMPANY IN THE FIELD OF BUILDING SEALANTS AND SPECIAL EXTERNAL WALL COVERINGS STRUCTAL EUROPE EMPLOYS 700 PEOPLE OF WHICH 600 ARE BASED IN FRANCE AND OPERATES SEVEN PRODUCTION UNITS IN FRANCE IT HAD CONSOLIDATED REVENUE OF 550 MILLION FRANCS 931 MILLION IN 1992 SMAC ACIEROID HAS 3800 EMPLOYEES AND CONTRIBUTED 28 BILLION FRANCS TO BOUYGUES REVENUE IN 1992 9401040005 940104 BUSINESS BRIEF AMERCO UHAUL UNIT EXTENDS OFFER TO ACQUIRE 17 PARTNERSHIPS UHAUL INTERNATIONAL INC EXTENDED ITS 3095 MILLION HOSTILE OFFER TO ACQUIRE PARTNERSHIPS THAT OWN 139 SELFSERVICE STORAGE CENTERS SAYING FEW OF THE PARTNERSHIP UNITS HAD BEEN TENDERED BEFORE THE OFFER WAS TO EXPIRE LAST NIGHT THE 17 LIMITED PARTNERSHIPS ARE MANAGED BY SHURGARD INC OF SEATTLE WHOSE CONTROLLING SHAREHOLDER IS A GENERAL PARTNER OF ALL OF THE PARTNERSHIPS SHURGARD IS FIGHTING UHAUL'S BID WHICH COMPETES WITH AN OFFER BY THE GENERAL PARTNERS TO CONSOLIDATE THE PARTNERSHIPS INTO A PUBLICLY TRADED REALESTATE INVESTMENT TRUST SHURGARD CONTENDS THE PARTNERSHIPS' NET ASSET VALUE SIGNIFICANTLY EXCEEDS THE SIZE OF THE UHAUL BID AND THAT THE PARTNERSHIPS ARE LIKELY TO BE VALUED EVEN HIGHER BY THE STOCK MARKET UHAUL A UNIT OF AMERCO WHICH IS BASED IN RENO NEV AND CONTROLLED BY THE SHOEN FAMILY SAID NO MORE THAN 2 OF THE PARTNERSHIP UNITS OUTSTANDING HAD BEEN TENDERED BY YESTERDAY UHAUL EXTENDED ITS OFFER TO JAN 28 THE SAME DATE SHURGARD'S ROLLUP OFFER EXPIRES 9401040004 940104 WHO'S NEWS REDWOOD EMPIRE BANCORP REDWOOD EMPIRE BANCORP SANTA ROSA CALIF PATRICK W KILKENNY 47 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE WAS NAMED CHAIRMAN OF NATIONAL BANK OF THE REDWOODS A WHOLLY OWNED SUBSIDIARY OF THIS BANK HOLDING COMPANY HE SUCCEEDS JOHN H DOWNEY JR 69 WHO RETIRED BUT REMAINS A DIRECTOR 9401040003 940104 BUSINESS BRIEF MAIN STREET & MAIN INC DAIRY FOOD OPERATIONS SOLD TO SUN STREET FOOD INVESTORS MAIN STREET & MAIN INC SCOTTSDALE ARIZ SAID IT SOLD A 90 STAKE IN ITS DAIRY AND FOOD DISTRIBUTION OPERATIONS TO SUN STREET FOOD CO A CLOSELY HELD COMPANY BASED IN PHOENIX AND ORGANIZED BY A LOCAL INVESTOR GROUP TO MAKE THE ACQUISITION TERMS WEREN'T DISCLOSED BUT MAIN STREET SAID THE PURCHASE PRICE IN CASH AND NOTES WAS APPROXIMATELY EQUAL TO THE COMPANY'S BASIS IN THE ASSETS OF THE OPERATIONS MAIN STREET ACQUIRED ITS CARNATION DAIRY ARIZONA UNIT IN 1992 FOR 218 MILLION IT ACQUIRED DAIRY MAID FOODS THE SAME YEAR FOR 89 MILLION MAIN STREET SAID THE TWO UNITS HAD ESTIMATED 1993 SALES OF 135 MILLION THE INVESTOR GROUP IS LED BY JERRY COLANGELO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PHOENIX SUNS BASKETBALL TEAM LOUIS CARLO 47 FORMER PRESIDENT OF THE MAIN STREET UNIT THAT OPERATED THE TWO COMPANIES WILL SERVE AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF SUN STREET MAIN STREET WILL CONTINUE TO HOLD A 10 STAKE IN SUN STREET THE COMPANY SAID MAIN STREET HAS SAID IT SEEKS TO FOCUS ON ITS CORE BUSINESS OF DEVELOPING AND OPERATING TGI FRIDAY'S RESTAURANTS 9401040002 940104 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JAN 417 CULLED FROM THE YALE CENTER FOR BRITISH ART AT NEW HAVEN THE NATIONAL GALLERY THE ART INSTITUTE OF CHICAGO THE METROPOLITAN MUSEUM OF ART AND 15 OTHER PUBLIC AND PRIVATE COLLECTIONS 91 PAINTINGS AND WATERCOLORS BY 44 BRITISH ARTISTS PRESENT A SURVEY OF AMERICAN HOLDINGS OF BRITISH LANDSCAPES FROM THIS PERIOD OF SPECIAL NOTE ARE GAINSBOROUGH'S THE ROAD FROM MARKET AND TURNER'S WATERCOLOR SUNSET AND MOONRISE AS WELL AS PAINTINGS BY JOSEPH WRIGHT OF DERBY CONSTABLE AND SAMUEL PALMER DENVER ART MUSEUM 14TH AVENUE AND BANNOCK THROUGH FEB 6 MORE THAN 75 COLORFUL AND BOLD PRINTS BY THIS AMERICAN ARTIST WHO'S BEST KNOWN FOR HER ROLE IN THE TRANSITION FROM ABSTRACT EXPRESSIONISM TO COLORFIELD PAINTING WILL BE THE FOCUS OF THIS SURVEY EXHIBITION BEGINNING WITH HER FIRST PRINT FIRST STONE 1961 A LITHOGRAPH COMPOSED OF CALLIGRAPHIC MARKS ON AN OPEN FIELD THIS SHOWING WILL FEATURE MANY WORKS FROM THE ARTIST'S PERSONAL ARCHIVES FROM SMALL DELICATE PIECES TO HER MOST RECENT PROJECT A 27COLOR WOODCUT CALLED FREEFALL 19921993 SEVENTY OBJECTS FROM INTRICATELY CARVED IVORY TUSKS TO MASSIVE ELEPHANT MASKS AND REPRESENTING SOME 30 AFRICAN CULTURES HAVE BEEN DRAWN FROM EUROPEAN AMERICAN AND AFRICAN MUSEUMS AS WELL AS SEVERAL PRIVATE COLLECTIONS THE EXHIBIT HAS SOME OF THE OLDEST SCULPTURAL REPRESENTATIONS OF ELEPHANTS FROM SUBSAHARAN AFRICA IGBO UKWU IFE AND TSEODE BRONZES AND TERRACOTTAS FROM NIGERIA SOME MADE AS EARLY AS THE NINTH CENTURY METROPOLITAN MUSEUM OF ART FIFTH AVENUE AT 82ND STREET THROUGH FEB 27 212 8795500 THE PREMIERE OF DOMINICK ARGENTO'S THE DREAM OF VALENTINO IS SET FOR JAN 15 GIVING VOICE TO SILENTSCREEN STAR RUDOLPH VALENTINO ROBERT BRUBAKER ASSUMES THE TITLE ROLE CHRISTOPHER KEENE CONDUCTS AND ANNMARGRET PETTERSSON DIRECTS WITH SETS BY JOHN CONKLIN AND COSTUMES BY THE OTHER VALENTINO NO RELATION EISENHOWER THEATER AT THE KENNEDY CENTER ALSO JAN 17 21 23 27 30 FEB 2 5 7 9 11 AND 13 LOCALLY 202 4167800 ELSEWHERE 180087OPERA JANE EAGLEN ONE OF THE BIG NEW LADIES OF SONG SUBSTITUTES FOR THE STRICKEN CAROL VANESS AS BELLINI'S NORMA THE MOST CHALLENGING BEL CANTO ROLE IN THE BUSINESS SUSANNE MENTZER IS HER PAL AND RIVAL ADALGISA CRAIG SIRIANNI SINGS THEIR MAN PROCONSUL POLLIONE THIS NEW PRODUCTION OF NORMA IS DIRECTED BY NICHOLAS MUNI WITH SETS BY THE TIRELESS JOHN CONKLIN AND EDOARDO MULLER ON THE PODIUM SEATTLE CENTER OPERA HOUSE 321 MERCER ST JAN 8 11 14 16 19 22 AND 26 206 3897676 ASHLEY PUTNAM SINGS VANESSA THE TITLE ROLE IN SAMUEL BARBER'S GOTHIC OPERA ABOUT A JILTED WOMAN ROSALIND ELIAS WHO WAS ERIKA IN THE WORLD PREMIERE AT THE MET IN JANUARY 1958 NOW HOLDS FORTH AS THE OPINIONATED OLD BARONESS MICHAEL YEARGAN DESIGNS MICHAEL KAHN IS THE DIRECTOR AND STEVEN MERCURIO CONDUCTS MUSIC HALL AT FAIR PARK JAN 7 9 12 AND 15 214 4431000 THIS THREECONCERT NEW YORK PHILHARMONIC SERIES NOW IN ITS SECOND SEASON BEGINS JAN 5 THE OPENING ONEHOUR PROGRAM CONDUCTED BY LEONARD SLATKIN WILL FEATURE RESPIGHI'S THIRD SUITE OF ANCIENT AIRS AND DANCES AND STRAVINSKY'S RITE OF SPRING ALL PROGRAMS START AT 645 PM WITH THE OTHER TWO SLATED FOR MARCH 29 AND MAY 10 EACH CONCERT WILL BE FOLLOWED BY A RECEPTION ALLOWING THE AUDIENCE TO MEET THE MUSICIANS AVERY FISHER HALL LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS 212 8755700