WASHINGTON SEEKING TO BOLSTER SUPPORT FOR THE ENERGY TAX THE TREASURY IS ABOUT TO WAGE A CAMPAIGN NAMING THE LARGE OIL COMPANIES THAT ENDORSE PRESIDENT CLINTON'S ECONOMIC PLAN WHILE SINGLING OUT THOSE THAT OPPOSE IT TREASURY SECRETARY LLOYD BENTSEN IS EXPECTED TO ANNOUNCE SOON THAT BRITISH PETROLEUM CO IS BACKING THE ECONOMIC PROGRAM WHICH INCLUDES A LEVY ON A VARIETY OF FORMS OF ENERGY RIGHT AFTER MR CLINTON UNVEILED HIS ECONOMIC PLAN LAST MONTH ATLANTIC RICHFIELD CO SAID IT WAS ON BOARD SHELL OIL CO A SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP SAYS THAT WHILE IT HAS SOME CONCERNS ABOUT THE IMPACT OF THE ENERGY TAX IT ALSO SUPPORTS THE OVERALL CLINTON PROPOSAL AT THE SAME TIME MR BENTSEN WILL POINT TO THE AMERICAN PETROLEUM INSTITUTE A TRADE GROUP AS A STRIDENT OPPONENT OF THE PRESIDENT'S PLAN TREASURY OFFICIALS SAID THE SECRETARY A TEXAN AND LONGTIME FRIEND OF THE OIL INDUSTRY ALSO PLANS TO PUBLICLY REPROACH COMPANIES SUCH AS EXXON CORP AND MOBIL CORP FOR THEIR OPPOSITION THE AIM OF THIS STRATEGY IS TO GIVE LAWMAKERS FROM ENERGYPRODUCING STATES THE COMFORT THAT THEY CAN VOTE FOR THE CLINTON PACKAGE WHILE KNOWING THAT MAJOR PLAYERS IN THE INDUSTRY ARE BEHIND THEM THOSE COMPANIES OPPOSED TO THE PLAN MEANWHILE WILL BE PORTRAYED AS THE KIND OF SPECIAL INTERESTS THAT THE PRESIDENT WARNED WOULD ATTEMPT TO STAND IN HIS WAY A BP SPOKESMAN CONFIRMED THE COMPANY'S BACKING SAYING THAT WE THINK IT'S IMPORTANT TO BRING ABOUT DEFICIT REDUCTION AN EXXON SPOKESMAN SAID THE COMPANY BELIEVES THE ADMINISTRATION SHOULD LOOK FIRST AT MORE SPENDING CUTS AND ONLY THEN PURSUE A LEVY THAT'S BROADER THAN AN ENERGY TAX REPRESENTATIVES OF THE PETROLEUM INSTITUTE AND MOBIL COULDN'T BE REACHED TREASURY OFFICIALS SAID DISCUSSIONS ARE CONTINUING WITH CHEVRON CORP AMOCO CORP UNOCAL CORP DU PONT CO'S CONOCO DIVISION AND PHILLIPS PETROLEUM CO TO DETERMINE THEIR POSITIONS THE EFFORT TO DIVIDE AND CONQUER THE OIL INDUSTRY EMERGED AS SENIOR OFFICIALS FROM THE TREASURY AND OTHER PARTS OF THE ADMINISTRATION SOUGHT TO FIGURE OUT EXACTLY HOW THE ENERGY TAX WOULD BE APPLIED THEIR GOAL IS TO HAVE THE DETAILS FINALIZED AND APPROVED BY PRESIDENT CLINTON BY THE END OF THIS WEEK AMONG THE THORNY ISSUES THAT HAVE TO BE RESOLVED IS PRECISELY WHERE TO IMPOSE THE TAX ON NATURAL GAS MIKE GERMAN SENIOR VICE PRESIDENT WITH THE AMERICAN GAS ASSOCIATION SAID TALKS WITH TREASURY OFFICIALS LED MEMBERS OF THE TRADE GROUP TO BELIEVE THAT THE TAX WOULD BE COLLECTED AT THE CONNECTION POINT BETWEEN THE PIPELINE AND THE LOCAL UTILITY BUT A CLINTON ADVISER SAID LAST WEEKEND THAT THE ADMINISTRATION WAS STILL STRUGGLING OVER HOW TO ENSURE THAT THE UTILITIES COULD PASS THE TAX ON TO CONSUMERS THEREBY ENCOURAGING CONSERVATION THE PROBLEM IS GUARANTEEING THAT SUCH A PASSTHROUGH WOULD BE APPROVED BY STATE REGULATORS MOREOVER APPLYING FOR A RATE INCREASE COULD OPEN UP UTILITIES TO OTHER QUESTIONS ABOUT THEIR COST STRUCTURE INCLUDING WHETHER THEY ARE ADEQUATELY ACCOUNTING FOR CURRENT LOW INTEREST RATES EVERY TIME YOU GO INTO A RATE CASE YOU ROLL THE DICE SAID MICHAEL FOLEY DIRECTOR OF FINANCIAL ANALYSIS FOR THE NATIONAL ASSOCIATION OF REGULATORY UTILITY COMMISSIONERS 9303150052 930315 INDUSTRY FOCUS INSURERS WINCE AS RATINGS AGENCIES TAKE TOUGHER LINE DOWNGRADES LINKED TO REALESTATE WOES ARE COSTING THE INDUSTRY DEARLY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL IN OCTOBER RICHARD JENRETTE DID SOMETHING MOST INSURANCE EXECUTIVES WOULD NEVER DARE HE CRITICIZED THE RATINGS AGENCIES IN PUBLIC IN A SPEECH BEFORE SECURITIES ANALYSTS HE ACCUSED THE AGENCIES OF BEING INCONSISTENT IT'S RATHER LIKE DOING THE LIMBO SAID MR JENRETTE THE CHAIRMAN OF EQUITABLE COS THE HURDLE RATE IS MADE PROGRESSIVELY MORE DIFFICULT TO ACHIEVE UNTIL ONE FALLS ON ONE'S PARDON THE EXPRESSION DERRIERE THE WORDS WERE CONSIDERED BRASH BECAUSE THE AGENCIES WIELD ENORMOUS POWER WITH A SINGLE DOWNGRADE THEY CAN COST A COMPANY MILLIONS OF DOLLARS IN BUSINESS BUT MR JENRETTE WANTED TO EXPLAIN WHY EQUITABLE'S RATINGS WERE LOWER THAN IN 1990 WHEN THE COMPANY WAS FINANCIALLY WEAKER EQUITABLE'S PREDICAMENT HAS BEEN FELT BY MANY OTHERS IN THE LIFE INSURANCE INDUSTRY IN RECENT YEARS THE INDUSTRY HAS BY SOME MEASURES GOTTEN STRONGER CAPITAL FOR INSTANCE HAS INCREASED AND SOURED INVESTMENTS HAVE DECLINED BUT LATELY THE RATINGS AGENCIES HAVE BEEN DOWNGRADING ONE COMPANY AFTER ANOTHER CITING THE HUGE EXPOSURES LIFE INSURANCE COMPANIES HAVE TO THE RECESSIONRAVAGED REALESTATE MARKET WHILE ACKNOWLEDGING THEY HAVE REALESTATE PROBLEMS INSURERS SAY THE RATING AGENCIES ARE BEING TOO PESSIMISTIC FOR OTHER INDUSTRIES THE TREND WOULD BE ANNOYING BUT NOT PARTICULARLY SERIOUS A CONSUMER COULDN'T CARE LESS WHAT STANDARD & POOR'S THINKS ABOUT GENERAL MOTORS CORP BUT FOR INSURANCE CONSUMERS THE BIGGEST WORRY IS WHETHER A COMPANY WILL BE AROUND LONG ENOUGH TO PAY OFF A POLICY ACCORDINGLY INSURANCE BUYERS ARE OBSESSED WITH RATINGS SOME CORPORATE SAVINGS PLANS FOR INSTANCE FLATLY REFUSE TO BUY GUARANTEED INVESTMENT CONTRACTS WITH INSURANCE COMPANIES RATED SINGLEA OR LOWER SUCH RESTRICTIONS MAKE IT HARDER FOR SINGLEA COMPANIES SUCH AS EQUITABLE TRAVELERS CORP AND MUTUAL OF NEW YORK TO SELL INSURANCE THAN BETTERRATED INSURERS SAID MURRAY BECKER OF TEANECK NJBASED BECKER & ROONEY WHICH CONSULTS CORPORATIONS ON GICS THE FIXATION ON RATINGS HAS GIVEN THE AGENCIES TREMENDOUS INFLUENCE SOME EXPERTS GO SO FAR AS TO ARGUE THAT THE RATINGS AGENCIES ARE THE DE FACTO REGULATORS OF THE INSURANCE BUSINESS SAYING THEY HAVE MORE POWER OVER INSURERS THAN THE STATE OFFICIALS ASSIGNED TO OVERLOOK THE INDUSTRY INSURANCE COMPANIES ARE AT THE MERCY OF THE AGENCIES MR BECKER SAID STAYING AT THE HIGH END OF RATINGS REQUIRES MORE EFFORT THAN MEETING SOLVENCY REQUIREMENTS THE AGENCIES DEFEND THE DOWNGRADES AS JUSTIFIED GIVEN THE SHABBY STATE OF THE ECONOMY AND THE GROWING COMPETITION IN THE INDUSTRY THESE COMPANIES ARE A VICTIM OF THEIR OWN DECISIONS SAID ROY TAUB S&P EXECUTIVE MANAGING DIRECTOR THE DOWNGRADES ARE WHOLLY JUSTIFIED BECAUSE OF WHAT THEY'VE DONE TO THEMSELVES AS FOR BEING QUASIREGULATORS AGENCY OFFICIALS SAY THAT ROLE CAN'T BE HELPED GIVEN THE MIXED QUALITY OF INSURANCE REGULATION UNLIKE THE BANKING INDUSTRY WHICH IS REGULATED BY A FAIRLY AGGRESSIVE FEDERAL AGENCY THE OFFICE OF THE COMPTROLLER OF THE CURRENCY INSURERS CAN FIND REGULATION TO BE EASIER OR TOUGHER DEPENDING ON WHICH STATE THEY ARE IN IN INSURANCE YOU DON'T HAVE AN OCC ON TOP OF MANAGEMENT CRITICIZING HOW IT DOES BUSINESS SAID CHESTER MURRAY ASSOCIATE DIRECTOR OF MOODY'S INVESTORS SERVICE INC SINCE 1990 THE PERCENTAGE OF COMPANIES THAT S&P RATES TRIPLEA HAS FALLEN TO 27 FROM 39 THE AVERAGE RATING GIVEN BY MOODY'S HAS FALLEN TO SINGLEA FROM DOUBLEA AM BEST CO ALSO HAS KNOCKED DOWN SEVERAL MAJOR INSURERS THE IDEA THAT THE AGENCIES ARE TOO TOUGH IS IRONIC CONSIDERING THAT UNTIL RECENTLY THEY WERE VIEWED AS SOFT S&P CAUGHT AN EARFUL FOR HAVING A FAVORABLE RATING ON THE CALIFORNIA INSURANCE UNIT OF FIRST EXECUTIVE CORP LESS THAN A YEAR BEFORE THE STATE TOOK IT OVER MOODY'S RATED MUTUAL BENEFIT DOUBLEA ONLY TWO MONTHS BEFORE IT FAILED INSURANCE EXECUTIVES FEEL THAT BECAUSE AGENCIES GOT BURNED BY THOSE FAILURES THE AGENCIES NOW WANT TO PROVE THEIR TOUGHNESS BESIDES INSURERS SAY LOW RATINGS ARE A WAY FOR AGENCIES TO COVER THEMSELVES FROM CRITICISM FEW WILL NOTICE IF A COMPANY'S RATING IS TOO LOW BUT AN AGENCY SUFFERS A MAJOR EMBARRASSMENT IF A HIGHLY RATED COMPANY GOES UNDER AGENCY OFFICIALS DISMISS THE IDEAS AS NONSENSE THE DOWNGRADES THEY SAY SIMPLY REFLECT REALITY THE ENVIRONMENT HAS CHANGED EXPLAINED LARRY MAYEWSKI VICE PRESIDENT FOR AM BEST DESPITE DISAGREEMENTS WITH THE AGENCIES COMPANIES HAVE NO CHOICE BUT TO TAILOR THEIR BEHAVIOR TO PLEASE THEM IN DECEMBER AM BEST DOWNGRADED TRAVELERS TO SINGLEAMINUS FROM SINGLEA AFTER A YEAR IN WHICH TRAVELERS RAISED 14 BILLION IN FRESH CAPITAL TRAVELERS CHAIRMAN EDWARD BUDD DISAGREED WITH THE DOWNGRADE BUT HE PROMISED THE COMPANY WOULD DO EVEN MORE TO IMPROVE THE AGENCY'S OPINION TRAVELERS WILL CONTINUE TO TAKE ALL STEPS NECESSARY TO JUSTIFY FUTURE RATING UPGRADES HE SAID STRONG FINANCIAL RATINGS ARE ESSENTIAL THE AGENCIES ALSO INFLUENCE HOW INSURANCE COMPANIES INVEST INSURANCE EXECUTIVES SAY THEIR COMPANIES HAVE BEEN REDUCING THEIR REALESTATE AND JUNKBOND HOLDINGS BECAUSE THE AGENCIES ASSUME ANY INVESTMENT IN THOSE AREAS IS SUSPECT THE NEED TO HAVE A HIGH RATING HAS CAUSED COMPANIES TO OPERATE MORE CONSERVATIVELY THAN THEY OUGHT TO SAID CHARLES ROLM AN EXECUTIVE VICE PRESIDENT FOR PRINCIPAL GROUP A LIFE INSURER IN DES MOINES IOWA IT'S BAD FOR POLICYHOLDERS THAT'S BECAUSE HIGHER INVESTMENT RETURNS LEAD TO HIGHER DIVIDENDS FOR POLICYHOLDERS DESPITE CRITICISM THAT THE AGENCIES ARE TOO TOUGH THERE REMAINS A LINGERING FEELING AMONG CORPORATE TREASURERS THAT THE AGENCIES GIVE INSURERS TOO MUCH CREDIT THE NOTION SPRINGS FROM THE FACT THAT THE AGENCIES MAKE THEIR MONEY BY CHARGING COMPANIES A FEE TO GET RATED FEES RANGE 15000 TO 30000 PER RATING SUSPICION ABOUT THE AGENCIES HAS CREATED OPPORTUNITIES FOR COMPANIES LIKE TOWNSEND & SCHUPP A HARTFORD CONN INSURANCERATING CONCERN WHICH GETS PAID NOT BY INSURERS BUT BY INSURANCE CUSTOMERS MR MURRAY OF MOODY'S SAID THAT AGENCY PROBABLY WILL UPGRADE SOME INSURERS AS THE ECONOMY IMPROVES BUT HE ADDED THAT THE INDUSTRY WILL NEVER BE VIEWED AS STRONG AS IT ONCE WAS INSURANCE HAS BECOME TOO COMPETITIVE AND THE PROFIT MARGINS TOO THIN FOR THAT MR TAUB OF S&P SAID CAPITAL INFUSIONS ALONE WON'T CHANGE HIS AGENCY'S OPINION OF INDIVIDUAL INSURERS THERE COULD STILL BE QUESTIONS ABOUT EARNINGS AND INVESTMENTS HE SAID 9303150051 930315 HEARD ON THE STREET DESPITE QVC'S YEARLONG RUNUP BULLS BET ON DILLER'S VISION AND HOME SHOPPING MERGER BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHY WOULD ANYBODY BUY STOCK IN A CABLETELEVISION NETWORK KNOWN FOR HAWKING ERSATZ DIAMONDS NOW THAT THE SHARES HAVE QUADRUPLED IN A YEAR TO TRADE AT 44 TIMES THE PAST YEAR'S EARNINGS IN THE CASE OF QVC NETWORK INVESTORS CAN THINK OF SEVERAL REASONS NOT THE LEAST OF WHICH IS ITS CHIEF EXECUTIVE OFFICER BARRY DILLER AND HIS CAMPAIGN TO BROADEN THE COMPANY'S APPEAL TO UPSCALE SHOPPERS THE BULLS SAY THERE'S A LONGTERM PLAY HERE FOR INVESTORS WHO ARE WILLING TO WAIT DESPITE AN AMAZING 1 BILLION SURGE IN QVC'S STOCKMARKET VALUE SINCE MR DILLER ARRIVED ON THE SCENE AS A MAJOR INVESTOR THREE MONTHS AGO AT FRIDAY'S CLOSE OF 55 DOWN 3/8 THE STOCK HAS ZOOMED UP BY TWOTHIRDS SINCE MIDDECEMBER WHEN MR DILLER CAME ABOARD AT ITS CURRENT LEVEL QVC IS TRADING AT 33 TO 34 TIMES WALL STREET'S EARNINGS ESTIMATES FOR THE FISCAL YEAR THROUGH NEXT JANUARY THAT IS MORE EXPENSIVE THAN HIGHFLIERS LIKE MICROSOFT NOTES ANALYST CRAIG BIBB OF PAINEWEBBER BY HIS TALLY QVC IS THE THIRDMOSTEXPENSIVE HIGHGROWTH MIDSIZE STOCK NOW TRADING YET HE STILL LIKES THE STOCK LONGTERM AN INFLUENTIAL QVC INVESTOR WHO REQUESTED ANONYMITY CONCURS THE MULTIPLE IS HIGH HE SAYS IT IS PARTLY BASED ON THE BUSINESS AS IT EXISTS TODAY SELLING CUBIC ZIRCONIA AND PARTLY ON ANTICIPATION OF WHAT BARRY WILL DO HE ADDS ALL OF THE EASY MONEY HAS BEEN MADE OVER THE LAST FEW MONTHS IT GETS HARDER FROM THIS POINT ON BARRY HAS TO DELIVER BUT HE AND OTHER FANS OF THE STOCK ARDENTLY BELIEVE THAT MR DILLER WILL DELIVER AND DELIVER BIG OVER THE LONGER TERM THEY SEE EXPLODING REVENUE AND EARNINGS ALL TIED TO MR DILLER'S PROGRAMMING WIZARDRY THE TREND TOWARD INTERACTIVE TELEVISION AND THE SAVVY OF MR DILLER'S QVC PARTNERS ESPECIALLY JOHN MALONE CHIEF EXECUTIVE OF CABLETV GIANT TELECOMMUNICATIONS AND CHAIRMAN OF ITS SPINOFF LIBERTY MEDIA AFTER QVC LAST WEEK POSTED A LEAP IN FOURTHQUARTER PROFIT ON A 21 INCREASE IN REVENUE SOME INVESTORS FIGURED THAT MUCH OF THE WONDERFUL NEWS WAS OUT AND THE STOCK EASED YET SOME ANALYSTS NOW EXPECT REVENUE GROWTH TO ACCELERATE MR DILLER IS PRESSING AHEAD TO BROADEN QVC'S HORIZONS TO A WHOLE NEW REALM OF SHOPPERS SAKS FIFTH AVENUE LAST WEEK SAID IT WILL START OFFERING ITS REAL CLOTHES SPORTSWEAR ON THE NETWORK STARTING IN MAY AND THERE HAVE BEEN TALKS WITH DESIGNER CALVIN KLEIN MR DILLER'S FRIEND NOT TO MENTION BLOOMINGDALES REVLON AND THE LIKE IT'S ALL A LOT TRENDIER THAN THE CHEAP JEWELRY AND CRYSTAL FIGURINES MORE COMMONLY ASSOCIATED WITH TV SHOPPING QVC'S AUDIENCE IS RELATIVELY SMALL SAYS ANALYST JOHN TINKER OF FURMAN SELZ THE WHOLE DEBATE USED TO BE WILL THE AUDIENCE EXPAND NOW DILLER IS TAPPING INTO THIS MASS AUDIENCE SUDDENLY HOME SHOPPING IS RESPECTABLE PAINEWEBBER'S MR BIBB CONCEDES RISK IS EXTREMELY HIGH RIGHT NOW BUT HE ADDS THAT AS LONG AS THE NEWS CONTINUES TO LOOK GOOD AND IT LOOKED SPECTACULAR ON MONDAY WHEN EARNINGS CAME OUT WE WOULD STICK WITH THIS WINNER FOR THE LONG TERM ANALYSTS PREDICT STRONG PERFORMANCE IN COMING YEARS THEY ENVISION CURRENTYEAR EARNINGS AT AROUND 160 A SHARE WITH NEXT FISCAL YEAR'S PROFIT JUMPING TO BETWEEN 180 AND 2 ANALYSTS NOTE THAT INCREASES IN REVENUE AT QVC HAVE A PROFOUND IMPACT ON PROFIT BECAUSE ITS COSTS WHILE HIGH ARE FIXED AS A RESULT RISING REVENUE CAN QUICKLY FATTEN EARNINGS AND IN THE NEXT SEVERAL YEARS SALES ARE LIKELY TO GROW EVEN MORE AS CABLE COMPANIES UPGRADE CABLE SYSTEMS TO PERMIT INTERACTIVE SHOPPING MR TINKER FOR ONE IS PREDICTING THAT TV HOME SHOPPING COULD TAKE A 10 BITE OUT OF THE 70 BILLIONAYEAR CATALOG RETAILING BUSINESS BULLS ALSO ARE BETTING THAT QVC'S PROFITS WILL BE BOOSTED SIGNIFICANTLY BY A MERGER BETWEEN IT AND RIVAL HOME SHOPPING NETWORK HOME SHOPPING ALREADY IS CONTROLLED BY MR MALONE'S LIBERTY MEDIA WHICH RECENTLY PROPOSED TO ACQUIRE THE HOME SHOPPING STAKE IT DOESN'T ALREADY OWN MEANWHILE LIBERTY COMCAST AND MR DILLER OWN A CONTROLLING STAKE IN QVC A MERGER BETWEEN QVC AND HOME SHOPPING WHICH ANALYSTS THINK COULD OCCUR BEFORE YEAREND WOULD CREATE A 2 BILLIONAYEAR HOME SHOPPING GIANT WITH THE EXPECTED OPERATING EFFICIENCIES THAT WOULD RESULT THE COMBINED COMPANIES COULD CUT ANNUAL COSTS BY AS MUCH AS 50 MILLION ANALYSTS ESTIMATE YEAR ENDED JAN 31 1993 FOURTH QUARTER JAN 31 1993 9303150050 930315 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ADVANTA CORP 2725000 CLASS B SHARES VIA PRUDENTIAL SECURITIES INC ALAMO GROUP INC INITIAL 18 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES ALC COMMUNICATIONS CORP EIGHT MILLION COMMON SHARES VIA PAINEWEBBER INC AMTROL INC 28 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO BIOVAIL CORP INITIAL 25 MILLION COMMON SHARES VIA KIDDER PEABODY & CO CITIZENS CORP 63 MILLION COMMON SHARES VIA MERRILL LYNCH & CO DEVRY INC 18 MILLION COMMON SHARES VIA FIRST BOSTON CORP ETHAN ALLEN INTERIORS INC 75 MILLION OF SENIOR NOTES AND 73 MILLION COMMON SHARES VIA KIDDER PEABODY EXCEL INDUSTRIES INC TWO MILLION COMMON SHARES VIA DEAN WITTER REYNOLDS INC FUTURE NOW INC 1450000 COMMON SHARES VIA WILLIAM BLAIR & CO MCGAW INC INITIAL 113 MILLION COMMON SHARES VIA ALEX BROWN & SONS MICROCHIP TECHNOLOGY INC INITIAL 15 MILLION COMMON SHARES VIA ALEX BROWN ORCHARD SUPPLY HARDWARE STORES CORP INITIAL 38 MILLION COMMON SHARES VIA LEHMAN BROTHERS INC PACIFIC SUNWEAR OF CALIFORNIA INC INITIAL 18 MILLION COMMON SHARES VIA ROBERTSON STEPHENS & CO PILLOWTEX CORP INITIAL 35 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP PLAYBOY ENTERPRISES INC THREE MILLION CLASS B SHARES VIA BEAR STEARNS & CO RIBI IMMUNOCHEM RESEARCH INC THREE MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC SENSORMEDICS CORP INITIAL 17 MILLION COMMON SHARES VIA LEHMAN BROTHERS UNITED RETAIL GROUP INC 12 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO UNIVERSAL CORP 3220000 COMMON SHARES VIA DILLON REED & CO WALL DATA INC 28 MILLION COMMON SHARES VIA BEAR STEARNS WITCO CORP 25 MILLION COMMON SHARES VIA GOLDMAN SACHS PENNSYLVANIA 987 MILLION OF CERTIFICATES OF PARTICIPATION VIA COMPETITIVE BID CENTRAL ARIZONA WATER CONSERVATION DISTRICT 106 MILLION OF BONDS VIA A PAINEWEBBER GROUP CHELAN COUNTY WASH PUBLIC UTILITY DISTRICT NO 1 297 MILLION OF ELECTRIC REVENUE REFUNDING BONDS VIA A GROUP LED BY COMANAGERS PRAGER MCCARTHY & SEALY AND JOHN NUVEEN & CO INC COLUMBUS OHIO 375 MILLION OF VARIOUSPURPOSE GENERAL OBLIGATION REFUNDING BONDS VIA AN AG EDWARDS & SONS INC GROUP CONNECTICUT 425 MILLION OF GENERAL OBLIGATION BONDS VIA A MERRILL LYNCH GROUP DELAWARE TRANSPORTATION AUTHORITY 1988 MILLION OFSERIES 1993 TRANSPORTATION SYSTEM SENIOR AND JUNIOR REVENUE BONDS VIA A DILLON READ GROUP EAST BAY MUNICIPAL UTILITY DISTRICT CALIF 82 MILLION OF WASTEWATER SYSTEM SUBORDINATED REVENUE REFUNDING BONDS VIA A MORGAN STANLEY & CO INC GROUP GREENVILLE SC 115 MILLION OF HOSPITAL FACILITY REVENUE REFUNDING BONDS VIA A PAINEWEBBER GROUP HOWARD COUNTY MD 175 MILLION OF REFUNDING AND NEWMONEY BONDS VIA A MERRILL LYNCH GROUP MARION COUNTY IND 75 MILLION OF CONVENTION AND RECREATION FACILITY REVENUE BONDS VIA A SMITH BARNEY GROUP NEW HAMPSHIRE MUNCIPAL BOND BANK 150 MILLION OF REFUNDING BONDS VIA GOLDMAN SACHS NEW YORK STATE THRUWAY AUTHORITY 150 MILLION OF REVENUE BONDS VIA A SMITH BARNEY GROUP PALM BEACH COUNTY FLA 137 MILLION OF CRIMINAL JUSTICE FACILITY REVENUE BONDS VIA A SMITH BARNEY GROUP PHOENIX ARIZ 335 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A GOLDMAN SACHS GROUP PLATTE RIVER POWER AUTHORITY COLO 165 MILLION OF REVENUE REFUNDING BONDS VIA A SMITH BARNEY GROUP TUCSON ARIZ 80 MILLION OF STREET AND HIGHWAY USER REVENUE BONDS VIA A FIRST BOSTON GROUP 9303150049 930315 COMMODITIES TURMOIL IN RUSSIA AND OPEC PRODUCTION LEVELS REMAIN OIL MARKET'S FOCUS AFTER PRICE INCREASES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON RUSSIA AND THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHICH HELPED PETROLEUM PRICES END LAST WEEK ON A BULLISH NOTE ARE LIKELY TO FIGURE PROMINENTLY IN WORLD OIL MARKETS AGAIN THIS WEEK THE FIERCE WINTER STORM THAT HIT THE US ATLANTIC SEABOARD OVER THE WEEKEND ALSO MAY CONTRIBUTE TO FURTHER FIRMING OF FUEL PRICES TODAY BUT IT MAY BE TOO LATE IN THE HEATING SEASON FOR MUCH OF AN IMPACT PETROLEUM PRICES WERE UP FRIDAY AFTER NEARLY A WEEK OF MAJOR SELLOFFS ON PROSPECTS OF REDUCED SUPPLIES FROM THE WORLD'S LEADING OIL EXPORTERS RUSSIA AND OPEC ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY NOT ONLY REMAINED ABOVE THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL BUT ROSE 16 CENTS A BARREL TO SETTLE AT 2029 ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE THE BRENT APRIL CONTRACT CLOSED AT 1889 A BARREL UP FROM THURSDAY'S 1855 TRADERS ATTRIBUTED THE HIGHER PRICES TO THE POLITICAL INSTABILITY IN RUSSIA WHERE THE CONFLICT BETWEEN THE CONGRESS AND PRESIDENT BORIS YELTSIN OVER HIS AUTHORITY REMAINED UNRESOLVED OVER THE WEEKEND AND TO ESTIMATES BY OUTSIDE MONITORS OF SHARP CUTS IN OPEC'S EARLYMARCH PRODUCTION AS REPORTED IN THIS NEWSPAPER FRIDAY THE CONSTITUTIONAL CRISIS IN RUSSIA A COUNTRY THAT RANKS AMONG THE WORLD'S TOP THREE OIL PRODUCERS FURTHER THREATENS RUSSIAN OIL EXPORTS ALREADY SEVERELY ERODED BY SEVERAL YEARS OF PLUNGING PRODUCTION ACCORDING TO THE INTERNATIONAL ENERGY AGENCY TOTAL EXPORTS FROM THE FORMER SOVIET UNION MOSTLY FROM RUSSIA HAVE FALLEN BELOW TWO MILLION BARRELS A DAY IN THE CURRENT QUARTER FROM 23 MILLION BARRELS A DAY IN THE LAST THREE MONTHS OF 1992 USUALLY THERE ARE SEASONAL RISES IN RUSSIA'S OIL EXPORTS IN THE SECOND QUARTER FROM THE WINTERAFFECTED LEVELS OF THE FIRST QUARTER LAST YEAR THE VERY STRONG RECOVERY IN EXPORTS IN THE SECOND QUARTER WAS SO BIG IT OBSCURED A LOT OF CUTS IN OPEC PRODUCTION SAID ROY MASON EDITOR OF OIL MOVEMENTS AN ENGLANDBASED PUBLICATION THAT IS NOT GOING TO HAPPEN THIS YEAR HE SAID PREVIOUS DECLINES IN RUSSIAN OIL SUPPLIES WERE USUALLY OFFSET BY PRODUCTION INCREASES IN OPEC BUT PRELIMINARY RESULTS FROM MONITORS OF OPEC'S PRODUCTION HAVE CONFIRMED THAT FOR THE MOMENT AT LEAST OUTPUT IS DOWN SHARPLY IN LINE WITH THE OIL MINISTERS' FEBRUARY AGREEMENT ON A NEW PRODUCTION CEILING OF 236 MILLION BARRELS A DAY AS PREVIOUSLY REPORTED GENEVABASED PETROLOGISTICS LTD ESTIMATED THAT IN THE FIRST WEEK OF MARCH OPEC'S PRODUCTION WAS A SURPRISING TWO MILLION BARRELS A DAY BELOW FEBRUARY'S OUTPUT OF 254 MILLION A DAY OIL MINISTERS OF THE SIXNATION GULF COOPERATION COUNCIL WHO MET OVER THE WEEKEND IN SAUDI ARABIA YESTERDAY SAID THEY WERE SATISFIED WITH THE PRICE TRENDS SINCE THE FEBRUARY OPEC DECISION TO CUT BACK PRODUCTION AND REITERATED THEIR COMMITMENT TO THE ACCORD HOWEVER THERE IS WIDESPREAD SKEPTICISM IN THE INDUSTRY THAT OPEC CAN MAINTAIN PRODUCTION DISCIPLINE FOR VERY LONG ULTIMATELY THE 18MILLION BARRELS A DAY OPEC REDUCTION IN MARKET SUPPLIES PROMISED FOR THIS MONTH AND THE 800000900000 BARRELS A DAY WIDELY EXPECTED MAY TURN OUT TO BE CLOSER TO 500000 REPORTED PIW'S OIL MARKET FLASH THIS WEEK THEREFORE TRADERS WILL BE LOOKING FOR FURTHER EVIDENCE THAT THE EXPORTERS ARE ADHERING TO THEIR NEW MARCH AND SECOND QUARTER PRODUCTION QUOTAS IF OPEC IS PERCEIVED TO BE LIVING BY THE QUOTAS IT WILL BE SUPPORTIVE TO OIL PRICES SAID FRED BRILL DIRECTOR OF ENERGY AT PEGASUS ECONOMETRIC GROUP BUT HE ADDED IF OPEC IS PERCEIVED TO BE CHEATING ON THE PRODUCTION QUOTAS IT WILL MURDER THIS MARKET LOOKING AHEAD TO COMMODITY MARKETS THIS WEEK COPPER TRADERS WILL BE FOCUSING ON WHETHER COPPER FUTURES PRICES CONTINUE THEIR STRONGER TONE THIS WEEK FOLLOWING GAINS LAST WEEK ON TECHNICAL GROUNDS AND ON CONCERN ABOUT POLITICAL TURMOIL IN RUSSIA A MAJOR COPPER PRODUCER THE MAY COPPER CONTRACT CLOSED 095 CENT HIGHER AT 9865 CENTS A POUND FRIDAY FOLLOWING GAINS OF 140 CENTS A POUND THURSDAY AND 105 CENTS A POUND WEDNESDAY TRADERS SAY SHORTCOVERING BY COMMODITY FUNDS IS PROPELLING THE MARKET HIGHER IN MOSTLY TECHNICAL TRADING AS THE MARKET MOVES TOWARD THE IMPORTANT 1 A POUND RESISTANCE LEVEL SHORT COVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR WAGERS THAT COPPER PRICES WILL FALL BUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS LARGESCALE SHORTCOVERING BY COPPER PRODUCERS AND BIG INVESTORS SUCH AS COMMODITY FUNDS TENDS TO ADD UPWARD PRICE MOMENTUM TO THE MARKET GRAINS & SOYBEANS TRADERS WILL FOCUS ON THE POLITICAL FORTUNES OF BORIS YELTSIN US GRAIN PRICES WOULD PROBABLY DROP IF THE RUSSIAN PRESIDENT LOSES HIS POWER STRUGGLE WITH THE PARLIAMENT TRADERS ARE CONCERNED THAT POLITICAL INSTABILITY WOULD FURTHER POSTPONE A SOLUTION TO THE RUSSIAN CREDIT CRISIS WHICH HAS SLOWED US FARM EXPORTS TO MOSCOW FRIDAY THE CLINTON ADMINISTRATION ANNOUNCED A BIGGERTHANEXPECTED DONATION OF 102 MILLION IN US FARM COMMODITIES TO RUSSIA THE AGRICULTURE DEPARTMENT SAID IT WILL SHIP 520000 METRIC TONS OF US WHEAT AND 87000 METRIC TONS OF US RICE TO RUSSIA UNDER THE FOOD FOR PROGRESS FOOD AID PROGRAM THE DEPARTMENT SAID IT IS ALSO DONATING 19 MILLION WORTH OF US CORN TO BELARUS THE AGRICULTURE DEPARTMENT WILL HAVE TO BUY MUCH OF THE COMMODITIES FROM THE OPEN MARKET BECAUSE GOVERNMENTCONTROLLED GRAIN STOCKPILES ARE TIGHT THE PURCHASES ARE EXPECTED TO HELP SUPPORT US GRAIN PRICES 9303150048 930315 WHAT'S NEWS BUSINESS AND FINANCE GENERAL MOTORS SAID ITS PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA CHANGED HIS MIND ABOUT TAKING A JOB AT VOLKSWAGEN AND WILL STAY AT GM THE US CAR MAKER IS SAID TO HAVE LURED LOPEZ WITH A PROMOTION TO EXECUTIVE VICE PRESIDENT BUT VW COMPLAINING ABOUT INTERVENTION BY GM SAID IT MAY GET LOPEZ YET THE PHARMACEUTICAL INDUSTRY PROPOSED TO THE GOVERNMENT A VOLUNTARY PROGRAM UNDER WHICH EACH DRUG COMPANY'S ANNUAL AVERAGE PRICE INCREASE WOULD BE LIMITED TO THE INFLATION RATE THE PLAN IS PART OF AN INDUSTRY EFFORT TO FEND OFF MANDATORY PRICE CONTROLS AMERICAN EXPRESS AND PRIMERICA ANNOUNCED THE 115 BILLION SALE OF AMERICAN EXPRESS'S SHEARSON UNIT TO PRIMERICA WHICH WILL MERGE ITS SMITH BARNEY UNIT WITH SHEARSON CREATING A SECURITIES FIRM MATCHED ONLY BY MERRILL LYNCH THE DEAL COULD LEAD RIVALS TO MERGE AS WELL OR TO FOCUS ON NICHES THE PROCEEDS FROM THE SALE WILL HELP BOLSTER AMERICAN EXPRESS'S BALANCE SHEET AND LET IT MOVE FASTER IN REVAMPING ITS CHARGECARD BUSINESS PRODUCER PRICES JUMPED 04 IN FEBRUARY FROM JANUARY THE LARGEST INCREASE SINCE 1990 BUT ECONOMISTS SAID THE INCREASE WASN'T ENOUGH TO WARRANT PANIC ABOUT INFLATION STOCK AND BOND PRICES SANK IN THE WAKE OF THE PRICE REPORT THE DOW JONES INDUSTRIALS DROPPED 2918 POINTS TO 342782 LONGTERM TREASURY BOND PRICES FELL MORE THAN 1 1/4 POINTS TIME WARNER IS TALKING TO U S WEST AND OTHER PHONE COMPANIES INTERESTED IN CABLE TELEVISION AS PART OF TIME'S SEARCH FOR A NEW INVESTOR ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS TIME IS SAID TO HAVE ALSO TALKED TO AT&T THE US TRADE CHIEF SAID THE GOVERNMENT EXPECTS TO BLOCK EUROPEAN COMPANIES FROM WINNING CERTAIN FEDERAL CONTRACTS BECAUSE THE EC HASN'T AGREED TO DROP BUY EUROPE RULES THE SEC LETS MORE THAN TWO YEARS ON AVERAGE ELAPSE BEFORE MAKING A FINAL DECISION ON AN APPEAL OF SANCTIONS AGAINST SECURITIES FIRMS AND BROKERS AN SEC PANEL IS EXPECTED TO REPORT NOVELL INTENDS TO INTRODUCE ITS OWN PERSONALCOMPUTER OPERATING SOFTWARE THAT WILL HAVE THE ABILITY TO RUN APPLICATIONS WRITTEN FOR MICROSOFT'S POPULAR MSDOS AND WINDOWS PROGRAMS A SMALL COMPUTER COMPANY NUTEK USA PLANS TO SELL DESKTOP MODELS THAT MIMIC APPLE'S MACINTOSH SEPARATELY DELL HIRED THE MAN WHO LED THE DESIGN OF APPLE'S POWERBOOK NOTEBOOK UNITS BLACKSTONE GROUP DROPPED ITS 13 BILLION BID TO ACQUIRE SUPERMARKET OPERATOR UNIVA AFTER A BIG UNIVA SHAREHOLDER OBJECTED TO THE PROPOSAL THE TREASURY INTENDS TO BOLSTER SUPPORT FOR A PROPOSED ENERGY TAX BY NAMING OIL COMPANIES THAT ENDORSE CLINTON'S ECONOMIC PLAN AND PUBLICLY REPROACHING THOSE THAT OPPOSE IT AMERICAN BARRICK'S STOCK SANK 6 AFTER THE INTERIOR SECRETARY SINGLED THE COMPANY OUT AS AN EXAMPLE OF WHAT IS WRONG WITH A LAW THAT LETS COMPANIES CHEAPLY ACQUIRE FEDERAL MINING LAND THE US TRANSPORTATION CHIEF ORDERED TRAFFICSAFETY OFFICIALS TO EXPEDITE THEIR INVESTIGATION INTO WHETHER 197387 MODEL GENERAL MOTORS PICKUP TRUCKS SHOULD BE RECALLED AS UNSAFE BONDS LEHMAN BROTHERS TREASURY INDEX 500753 OFF 5051 COMMODITIES OIL 2029 A BARREL UP 16 CENTS DOW JONES FUTURES INDEX 13148 UP 064 SPOT INDEX 12468 UP 047 DOLLAR 11803 YEN UP 042 16650 MARKS UP 00035 9303150047 930315 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FORT HOWARD CORP 750 MILLION TWOPART ISSUE OF NOTES WAS PRICED THROUGH MORGAN STANLEY & CO THE FIRST PART CONSISTING OF 450 MILLION OF SENIOR NOTES DUE MARCH 15 2001 WAS PRICED AT PAR TO YIELD 925 THE SIZE OF THE PORTION WAS RAISED FROM A PLANNED 300 MILLION THE NONCALLABLE ISSUE IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE SECOND PART CONSISTING OF 300 MILLION OF SUBORDINATED NOTES DUE MARCH 15 2003 WAS PRICED AT PAR TO YIELD 10 THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P SCOTIA PACIFIC HOLDING CO 385 MILLION OF TIMBER COLLATERALIZED NOTES DUE JULY 20 2015 WAS PRICED AT PAR TO YIELD 795 THE NOTES WERE PRICED AT A SPREAD OF 1875 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 364 MILLION DUE TO EARLY PRINCIPAL PAYMENTS THE NOTES HAVE A WEIGHTED AVERAGE LIFE OF 95584 YEARS THE NONCALLABLE ISSUE IS RATED BDOUBLEA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SCOTIA PACIFIC HOLDING IS A SPECIAL PURPOSE CORPORATION ORGANIZED TO FACILITATE THIS OFFERING AND IS A SUBSIDIARY OF PACIFIC LUMBER CO PACIFIC LUMBER CO 235 MILLION OF SENIOR NOTES DUE MARCH 1 2003 WAS PRICED AT PAR TO YIELD 105 THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 215 MILLION THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED THROUGH DEALERS LED BY SALOMON BROTHERS INC THE ISSUE IS RATED SINGLEB3 BY MOODY'S AND SINGLEBPLUS BY S&P SUMITOMO BANK OF CALIFORNIA 75 MILLION OF NONCUMULATIVE DEPOSITARY PREFERRED STOCK WAS PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO THE THREE MILLION SHARES OF 25ASHARE PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 8125 NONCALLABLE FOR FIVE YEARS THE SHARES ARE RATED TRIPLEBPLUS BY S&P BUT AREN'T RATED BY MOODY'S FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION OF SERIES 199344 REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES WAS DOUBLED FROM 500 MILLION BY NOMURA SECURITIES INTERNATIONAL THE OFFERING IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS FEDERAL HOME LOAN MORTGAGE CORP 700 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES HAS BEEN INCREASED IN SIZE FROM 400 MILLION THE OFFERING SERIES 1490 IS BACKED BY 15YEAR 65 MORTGAGEBACKED SECURITIES AND WAS OFFERED BY LEHMAN BROTHERS INC FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES HAS BEEN INCREASED FROM 300 MILLION THE OFFERING SERIES 1488 IS BACKED BY 15YEAR 7 MORTGAGEBACKED SECURITIES AND IS BEING OFFERED BY KIDDER PEABODY & CO FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1498 IS BACKED BY 75 30YEAR SINGLEFAMILY MORTGAGE LOANS THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 811 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES IS BEING OFFERED BY LEHMAN BROTHERS INC THE OFFERING SERIES 1499 IS BACKED BY 7 30YEAR SINGLEFAMILY MORTGAGE LOANS THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 78 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION NOTES DUE MARCH 24 1997 WAS PRICED AT PAR TO YIELD 517 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE ISSUE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 31 BASIS POINTS ABOVE A BLEND OF THE TREASURY THREEYEAR AND FIVEYEAR NOTES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE MARCH 19 2003 WAS PRICED AT PAR TO YIELD 649 THE NOTES NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 46 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS FEDERAL HOME LOAN MORTGAGE CORP 100 MILLION OF NOTES DUE MARCH 22 2000 WAS PRICED AT PAR TO YIELD 609 INITIALLY THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 40 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE NOVUS CREDIT SERVICES INC 430 MILLION OF HOME EQUITY CERTIFICATES PRICED LATE THURSDAY AT PAR TO FLOAT 45 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES NOVUS HOME EQUITY LINE OF CREDIT TRUST 19931 ARE BACKED BY HOME EQUITY LOANS ORIGINATED BY SEARS CONSUMER FINANCIAL CORP RECEIVABLES FINANCING NOVUS CREDIT SERVICES IS A UNIT OF THE NEW DEAN WITTER DISCOVER & CO WHICH WAS SPUN OFF BY SEARS ROEBUCK & CO IN AN INITIAL PUBLIC OFFERING THE CERTIFICATES WITH A 286YEAR AVERAGE LIFE FLOAT TO A CAP THAT VARIES FROM 17 TO 18 RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WAS BROUGHT BY DEAN WITTER REYNOLDS INC CREDIT SUPPORTS CONSIST OF A 12 CASH COLLATERAL ACCOUNT GENERAL ELECTRIC CAPITAL CORP US 15 BILLION FRENCH FRANCS OF 7 1/2 EUROBONDS DUE APRIL 5 1995 AT ISSUE AND REOFFER PRICE OF 9978 VIA CREDIT LYONNAIS BONDS YIELD 762 ANNUALLY A SPREAD OF 25 BASIS POINTS ABOVE 7 1/2 FRENCH GOVERNMENT NOTE DUE APRIL 1995 WORLD BANK SUPRANATIONAL 200 BILLION LIRE OF 10 3/4 EUROBONDS DUE APRIL 7 2003 AT ISSUE PRICE 101 5/8 VIA BANCA COMMERCIALE ITALIANA BONDS YIELD 1079 BMW FINANCE NV GRAVENHAGE GERMAN PARENT 250 MILLION DEUTSCHE MARKS OF REVERSE COUPON FLOATING RATE EURONOTES DUE APRIL 7 2003 AT ISSUE PRICE 10280 VIA DRESDNER BANK A/S NOTES PAY 9 COUPON IN FIRST YEAR REVERTING TO SEMIANNUAL COUPON THEREAFTER AT 12 MINUS PREVAILING SIXMONTH LONDON INTERBANK OFFERED RATE LIBOR FOR DEUTSCHE MARKS GUARANTOR BMW AG ABDIJ NATIONAAL FIRST CAPITAL BV UK PARENT 100 MILLION OF COLLARED FLOATING RATE EURONOTES DUE APRIL 2003 AT ISSUE PRICE PAR VIA SALOMON BROTHERS NOTES PAY INTEREST SEMIANNUALLY AT 125 BASIS POINTS BELOW LIBOR FOR US DOLLARS SUBJECT TO MINIMUM COUPON 5 1/4 AND MAXIMUM 8 1/4 GUARANTOR ABBEY NATIONAL PLC MITSUBISHI WAREHOUSE AND TRANSPORTATION CO LTD JAPAN 10 BILLION YEN OF 4 1/2 EUROBONDS DUE JULY 2 1998 AT ISSUE PRICE 10160 VIA NIKKO SECURITIES CO EUROPE LTD REOFFERED AT 100025 TO YIELD 449 9303150046 930315 INTERNATIONAL BRIEF AZABU BUILDING CO MITSUI TRUST SEEKS TO CONTROL 80 OF COMPANY'S STOCK CREDITORS HAVE TURNED UP THE HEAT IN THEIR CONFLICT WITH AZABU BUILDING CO A REAL ESTATE CONCERN HEADED BY STOCK AND PROPERTY SPECULATOR KITARO WATANABE MITSUI TRUST & BANKING CO AZABU'S LARGEST LENDER SAID IT HAS MOVED TO TAKE CONTROL OF ABOUT 200000 SHARES IN THE PRIVATELY HELD COMPANY OR ABOUT 80 OF THE STOCK OUTSTANDING AS COLLATERAL IT ISN'T CLEAR WHETHER IN THE SHORT TERM MITSUI'S ACTION WILL GIVE THE BANK THE UPPER HAND IN ITS EFFORT TO RESTRUCTURE THE TOKYOBASED AZABU GROUP'S 700 BILLION YEN 595 BILLION IN DEBT A SPOKESMAN FOR MITSUI TRUST SAID THE BANK MOVED LAST WEEK TO ASSUME THE SHARES BUT DECLINED TO COMMENT ON WHETHER THAT WILL SPEED PLANS TO RECOVER AZABU'S LIABILITIES BY SELLING OFF SOME OF ITS PROPERTIES INCLUDING ITS CHAIN OF HOTELS AND COMMERCIAL REAL ESTATE IN HAWAII OFFICIALS AT AZABU COULDN'T BE REACHED FOR COMMENT ABOUT THE BANK'S MOVE 9303150045 930315 WHAT'S NEWS WORLDWIDE THE HURRICANELIKE WEEKEND STORM TRAILED SNOW COLD AND HIGH WINDS FROM CUBA TO CANADA HALTING MOST TRANSPORTATION AND ACTIVITIES MORE THAN 50 INCHES OF SNOW WAS REPORTED AT MOUNT MITCHELL NC WIND GUSTS OF 109 MPH NEAR KEY WEST FLA AND TEMPERATURES OF TWO DEGREES FAHRENHEIT IN BIRMINGHAM ALA MORE THAN ONE MILLION PEOPLE REMAINED WITHOUT POWER YESTERDAY AND LOSSES BY INSURANCE COMPANIES ARE EXPECTED TO BE SIGNIFICANT PRESIDENT CLINTON WHO WALKED EIGHT BLOCKS THROUGH THE SNOW TO CHURCH PROMISED A QUICK RESPONSE TO REQUESTS FOR AID FROM STATES DAMAGED IN THE STORM US OFFICIALS OFFERED SUPPORT TO YELTSIN AFTER HIS AUTHORITY WAS TRIMMED A SPOKESMAN FOR PRESIDENT CLINTON SAID A SUMMIT NEXT MONTH WAS STILL ON DESPITE THE RUSSIAN LEADER'S UNCERTAIN FUTURE AFTER PARLIAMENT LAST WEEK STRIPPED HIM OF MOST OF HIS POWERS YELTSIN COULD FIGHT BACK BY DECLARING PRESIDENTIAL RULE THOUGH THAT IS UNLIKELY OR HE COULD ATTEMPT TO REBUILD HIS POWER BASE BUT HE COULD END UP BEING REPLACED SOON WITH A POLITICIAN MORE ACCEPTABLE TO HIS CRITICS SECRETARY OF DEFENSE ASPIN SAID AN ANTIREFORM GOVERNMENT IN RUSSIA COULD AFFECT DISARMAMENT TREATIES AND NECESSITATE MORE DEFENSE SPENDING BY THE US SERB ARTILLERY POUNDED THE MUSLIM ENCLAVE OF SREBRENICA IN EASTERN BOSNIA AS A UN GENERAL CONTINUED FOR A THIRD DAY TO TRY TO NEGOTIATE SAFE PASSAGE FOR AN AID CONVOY SEPARATELY THE FIRST WAR CRIMES TRIAL OF THE BOSNIAN CONFLICT BEGAN FRIDAY WITH A YOUNG SERB VOLUNTEER OFFERING CHILLING TESTIMONY ABOUT RAPES AND MASSACRES OF CIVILIANS BOMBAY POLICE FOUND AND DEFUSED A MOTOR SCOOTERBOMB THEY HOPE WILL PROVIDE CLUES IN A SERIES OF BOMBINGS THAT KILLED 300 PEOPLE AND INJURED 1100 FRIDAY IN INDIA'S BUSINESS CAPITAL NO GROUP HAS CLAIMED RESPONSIBILITY BUT OFFICIALS INDICATED THAT THE SOPHISTICATION OF THE ATTACKS POINTS TO SRI LANKAN TAMIL SEPARATISTS OR PAKISTAN CHINA'S LEGISLATURE PREPARED TO BEGIN ITS ANNUAL TWOWEEK SESSION TODAY AT WHICH IT IS EXPECTED TO NAME PREMIER LI PENG TO A NEW TERM AND RATIFY A SLATE OF GOVERNMENT LEADERS BACKED BY PARAMOUNT LEADER DENG XIAOPING THE NATIONAL PEOPLE'S CONGRESS IS ALSO EXPECTED TO APPROVE ADDITIONS TO THE GROWING CHINESE LEGAL CODE SOUTH KOREA'S FOREIGN MINISTER IS TO VISIT WASHINGTON THIS WEEK TO DISCUSS NORTH KOREA'S DECISION TO WITHDRAW FROM AN INTERNATIONAL NUCLEAR CONTROL TREATY PYONGYANG'S DECISION LAST WEEK REINFORCED SUSPICIONS THAT IT IS DEVELOPING NUCLEAR WEAPONS AND INCREASED TENSIONS BETWEEN THE KOREAS WHICH HAVE PLACED TROOPS ON HIGH ALERT AUSTRALIA'S LABOR GOVERNMENT WON REELECTION TO A THREEYEAR TERM OVER A RELATIVELY POPULAR ALTERNATIVE OFFERED BY A CONSERVATIVE COALITION THE VICTORY THE FIFTH IN A ROW FOR THE PARTY OF PRIME MINISTER KEATING CONFOUNDED POLLSTERS WHO PREDICTED THAT HIGH UNEMPLOYMENT AND A WEAK ECONOMY WOULD LEAD TO A LABOR DEFEAT SATURDAY MILITARY BASE CLOSINGS WILL HIT HARDEST IN SOUTH CAROLINA PENNSYLVANIA CALIFORNIA AND VIRGINIA UNDER RECOMMENDATIONS SENT TO AN INDEPENDENT COMMISSION BY DEFENSE SECRETARY ASPIN THE PANEL IS EXPECTED TO REMOVE FROM THE LIST FORT MCCLELLAN ALA AND ADD TO THE LIST MCCLELLAN AIR FORCE BASE IN CALIFORNIA EVIDENCE HAS EMERGED THAT SOVIET AUTHORITIES REPEATEDLY LIED ABOUT A 1979 ANTHRAX OUTBREAK IN SVERDLOVSK THAT KILLED AT LEAST 64 PEOPLE A STUDY BY RUSSIAN AND US PATHOLOGISTS SHOWS THE BACTERIA WAS INHALED BOLSTERING US CLAIMS THAT THE DEATHS WERE CAUSED BY AN AIRBORNE LEAK OF SPORES FROM A MILITARY LABORATORY EL SALVADOR'S NATIONAL POLICE SHIFTED POWER TO A CIVILIAN FORCE SATURDAY THE BEGINNING OF A TWOYEAR PROCESS LEADING TO ITS DISBANDING UNDER A UN PEACE ACCORD ON FRIDAY DEFENSE MINISTER PONCE SAID HE WOULD RESIGN AS A MULTINATIONAL COMMISSION PREPARED TO RELEASE A REPORT ON HUMAN RIGHTS VIOLATIONS DURING THE COUNTRY'S CIVIL WAR JAPANESE AUTHORITIES INDICTED SHIN KANEMARU EXVICE PRESIDENT OF THE RULING LIBERAL DEMOCRATS ON TAXEVASION CHARGES SATURDAY HE FACES A FIVEYEAR JAIL TERM DIED WANG ZHEN 85 HARDLINE VICE PRESIDENT OF CHINA AND A VETERAN OF THE LONG MARCH FRIDAY IN CANTON CHINA 9303150044 930315 STREET NAMES SHEARSON HAS BEEN A PART OF MANY NOW COMES LAST BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GERALD R FORD HAS MADE HIS MARK ON WALL STREET THE NATION'S 38TH PRESIDENT AN HONORARY DIRECTOR OF PRIMERICA CORP PLAYED A BIG PART IN PICKING THE NAME OF THE COMPANY'S NEWLY CREATED BROKERAGE GIANT EXECUTIVES SAY AS PRIMERICA'S BOARD BATTED AROUND POSSIBILITIES FOR THE NEW NAME LAST WEEK CHAIRMAN SANFORD I WEILL ASKED MR FORD FOR HIS OPINION THE EXECUTIVES SAY MR FORD ALSO AN ADVISER TO THE BOARD OF AMERICAN EXPRESS CO WHICH ON FRIDAY SOLD ITS SHEARSON BROKERAGE OPERATIONS TO PRIMERICA SAID SMITH BARNEY SHEARSON SOUNDED RIGHT THAT WAS ENOUGH TO SWAY MR WEILL WHO IN THE 1970S AND '80S BUILT SHEARSON INTO A BROKERAGEINDUSTRY FORCE BY PATCHING TOGETHER A SERIES OF STRUGGLING SECURITIES FIRMS IN AN INTERVIEW MR WEILL SAYS HE SOUGHT MR FORD'S ADVICE BECAUSE THE FORMER PRESIDENT HAS A FEEL FOR BOTH NAMES MR FORD ALSO IS A FORMER SHEARSON DIRECTOR MR WEILL POINTS OUT MR FORD COULDN'T BE REACHED TO COMMENT IN MOST BROKERAGE MERGERS THE BIGGER FIRM GETS TOP BILLING BUT BELEAGUERED SHEARSON HAS BEEN IN THE RED IN RECENT YEARS IN 1992 IT HAD A LOSS OF 116 MILLION EVEN AS OTHERS IN THE SECURITIES INDUSTRY INCLUDING PRIMERICA'S MUCHSMALLER SMITH BARNEY HARRIS UPHAM & CO UNIT ENJOYED RECORD PROFITS IN 1990 SHEARSON HAD A LOSS OF 966 MILLION A RECORD FOR THE BROKERAGE BUSINESS SMITH BARNEY SHEARSON IS THE EIGHTH NAME CHANGE FOR SHEARSON SINCE IT WAS FOUNDED IN 1902 AS SHEARSON HAMMILL & CO BY ED SHEARSON A CANADIAN BROKERAGE EXECUTIVE SHEARSON HAMMILL'S NAME STAYED THE SAME FOR 72 YEARS BEFORE HAYDEN STONE BOUGHT IT IN 1974 AND CALLED IT SHEARSON HAYDEN STONE SINCE THEN THE FIRM HAS BEEN CALLED SHEARSON LOEB RHOADES 1979 SHEARSON/AMERICAN EXPRESS 1981 SHEARSON LEHMAN/AMERICAN EXPRESS 1984 SHEARSON LEHMAN BROTHERS 1985 AND SHEARSON LEHMAN HUTTON 1988 IT REVERTED TO THE NAME SHEARSON LEHMAN BROTHERS IN 1990 AND NOW THIS THE NEW COMBINATION BLESSED BY MR FORD IS THE FIRST IN WHICH SHEARSON HASN'T HAD TOP BILLING AND THAT ANNOYS SOME SHEARSON BROKERS WHO HAVE GONE SO FAR AS TO COMPLAIN TO JOSEPH PLUMERI SHEARSON'S FORMER BROKERAGE CHIEF AND THE NEW PRESIDENT OF SMITH BARNEY SHEARSON MR PLUMERI TRIED TO SOOTHE THE BROKERS' BRUISED EGOS IN A CONFERENCE CALL LATE FRIDAY HE TOO WOULD HAVE PREFERRED SHEARSON SMITH BARNEY HE SAID BUT THIS WHOLE NAME THING IS OVERBLOWN LOOK AT THE BRIGHT SIDE OF THE NAME GAME MR PLUMERI TOLD THE BROKERS SMITH BARNEY SHEARSON WILL THRIVE HE SAID AND REPORTERS WILL TAKE BELEAGUERED' OFF OUR NAME 9303150042 930315 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 11 NEW LISTINGS INCLUDING 10 INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR NEW LISTINGS ON THE BIG BOARD THE FOLLOWING BEGAN TRADING AS INITIAL PUBLIC OFFERINGS PAYLESS CASHWAYS INC KANSAS CITY MO A RETAILER OF BUILDING MATERIALS AND HOME IMPROVEMENT PRODUCTS UNDER PCS ST JOHNS KNITS INC IRVINE CALIF A DESIGNER MAKER AND MARKETER OF WOMEN'S CLOTHING AND ACCESSORIES UNDER SJK EASTERN AMERICAN NATURAL GAS TRUST CHARLESTON W VA A TRUST FORMED TO HOLD ROYALTY INTERESTS IN CERTAIN DOMESTIC OIL AND GAS PROPERTIES OWNED BY EASTERN AMERICAN ENERGY CORP UNDER NGT FIRST FEDERAL SAVINGS BANK SAN JUAN PUERTO RICO A FEDERALLY CHARTERED BANK MOVED FROM OVERTHECOUNTER TRADING TO THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL FBP THE NATIONAL MARKET SYSTEM BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS EQUICREDIT CORP JACKSONVILLE FLA A CONSUMER FINANCE COMPANY UNDER EQCC LANDSTAR SYSTEMS INC SHELTON CONN A TRANSPORTATION SERVICES COMPANY UNDER LSTR S3 INC SANTA CLARA CALIF A SUPPLIER OF SOFTWARE PERSONAL COMPUTER OPERATING SYSTEMS UNDER SIII US CAN CORP OAK BROOK ILL A SELLER OF STEEL CONTAINERS FOR VARIOUS CONSUMER AND INDUSTRIAL PRODUCTS UNDER USCN COMMUNITY HEALTH COMPUTING CORP HOUSTON A DEVELOPER OF INFORMATION SYSTEMS FOR HOSPITALS AND HEALTH CARE FACILITIES IN NORTH AMERICA AND BRITAIN UNDER CHCC SUPERCONDUTOR TECHNOLOGIES INC SANTA BARBARA CALIF A DEVELOPER OF ADVANCED ELECTRONIC PRODUCTS USING HIGH TEMPERATURE SUPERCONDUCTOR MATERIALS UNDER SCON TENCOR INSTRUMENTS MOUNTAIN VIEW CALIF A DESIGNER MAKER AND MARKETER OF WAFER DEFECT INSPECTION AND METROLOGY SYSTEMS MAINLY FOR INTEGRATED CIRCUITS AND SEMICONDUCTORS UNDER TNCR SCANDINAVIAN BROADCASTING SYSTEM SA LUXEMBOURG A TELEVISION BROADCASTER IN NORWAY SWEDEN AND DENMARK UNDER SBTVF VICAL INC SAN DIEGO A DEVELOPER OF GENEBASED PHARMACEUTICALS UNDER VICL SPECIALTY PAPERBOARD INC BRATTLEBORO VT A PRODUCER OF HEAVYWEIGHT PRESSBOARD USED IN OFFICE PRODUCTS UNDER SPBI NATIONAL CONVENIENCE STORES INC HOUSTON A CONVENIENCE STORE OPERATOR REORGANIZED UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE BEGAN TRADING UNDER NCSIV THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING THE FOLLOWING ISSUES THAT USED TO TRADE OVERTHECOUNTER WILSHIRE TECHNOLOGIES INC CARLSBAD CALIF A MAKER OF DISPOSABLE PRODUCTS FOR MEDICAL AND CLEAN ROOM USE UNDER WIL AEROSONIC CORP CLEARWATER FLA A MANUFACTURER OF FLIGHT INSTRUMENTATION UNDER AIM COLUMBUS ENERGY CORP DENVER AN INDEPENDENT ENERGY CONCERN MOVED UP FROM THE AMERICAN STOCK EXCHANGE'S EMERGING COMPANY MARKETPLACE AND TRADES UNDER EGY THE AMERICAN STOCK EXCHANGE ALSO SAID IT BEGAN TRADING ON RELIV' INTERNATIONAL INC CHESTERFIELD MO A DIRECT SELLER OF NUTRITIONAL AND DIET PRODUCTS ON ITS EMERGING COMPANY MARKETPLACE UNDER RLVEC THE CHICAGO BOARD OPTIONS EXCHANGE SAID IT BEGAN TRADING LONGTERM ANTICIPATION SECURITIES OR LEAPS ON POLAROID CORP THE PACIFIC STOCK EXCHANGE SAID IT BEGAN TRADING OPTIONS ON MINERALS TECHNOLOGIES INC 9303150041 930315 MARKETING & MEDIA KARCHER ENTERPRISES EXPECTS TO RECORD 4THQUARTER LOSS ON RESERVES EXPENSES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL DONALD E DOYLE THE NEW PRESIDENT OF CARL KARCHER ENTERPRISES INC IS COOKING UP A NEW STRATEGY FOR THE COMPANY'S LAGGING CARL'S JR FASTFOOD CHAIN BUT OBSERVERS SAY THE FORMER PRESIDENT OF KENTUCKY FRIED CHICKEN USA HAS A TALL ORDER TO FILL CONSIDERING THE RECENT TURMOIL AT THE COMPANY IN THE PAST YEAR ALONE THE ANAHEIM CALIF COMPANY EXPERIENCED THE DEATH OF ITS PRESIDENT AND CHIEF OPERATING OFFICER DONALD KARCHER A FAILED LEVERAGED BUYOUT BID BY THE COMPANY'S FOUNDER CARL N KARCHER AND HIS SUBSEQUENT RESIGNATION AS CHIEF EXECUTIVE OFFICER IN DECEMBER MEANWHILE COMPETITORS HAVE CRANKED OUT INEXPENSIVE MENU ITEMS TO ENTICE PENNYPINCHING CUSTOMERS AND EARLIER SUCCESS AS A NEWPRODUCT INNOVATOR HAS FALTERED IN RECENT YEARS DESPITE ITS REPUTATION AS A SERVER OF QUALITY FAST FOOD BUT MR DOYLE SAYS THE COMPANY AND ITS BOARD INCLUDING CARL KARCHER ARE COMMITTED TO TAKING THE CHAIN IN A NEW DIRECTION THAT INCLUDES SQUEEZING HIGHER MARGINS OUT OF ITS STORES REVITALIZING MARKETING PROGRAMS AND SELLING THE CHAIN'S FOOD AS A GOOD VALUE TO DO THAT MR DOYLE SAYS THE COMPANY MUST FIRST CLEAN HOUSE FINANCIALLY THE COMPANY PLANS TO TAKE RESERVES AND EXPENSES IN THE FISCAL FOURTH QUARTER ENDED JAN 25 THAT WILL RESULT IN A LOSS OF ABOUT 11 MILLION TO 13 MILLION OR ABOUT 60 CENTS TO 74 CENTS A SHARE QUARTERLY REVENUES ARE EXPECTED TO DROP TO ABOUT 104 MILLION FROM 116 MILLION A YEAR EARLIER SAMESTORE SALES DECLINED ABOUT 6 IN THE QUARTER WHICH MR DOYLE ATTRIBUTED TO THE RECESSION'S EFFECTS ON THE COMPANY'S KEY SOUTHERN CALIFORNIA MARKET BAD WEATHER AND COMPETITION THE RESULTS WILL REFLECT ADDITIONAL RESERVES FOR WORKERS' COMPENSATION STORE CLOSINGS SEVERANCE COSTS FROM PREVIOUSLY ANNOUNCED CORPORATE STAFF CUTS AND EXPENSES TIED TO THE LEVERAGED BUYOUT ATTEMPT THOSE RESERVES AND CHARGES WILL TOTAL ABOUT 15 MILLION TO 17 MILLION FOR THE FISCAL YEAR KARCHER IS EXPECTED TO REPORT A LOSS OF 45 MILLION TO 55 MILLION OR A RANGE OF 25 CENTS TO 32 CENTS A SHARE REVENUES ARE EXPECTED TO DECLINE TO ABOUT 493 MILLION FROM 534 MILLION FOR THE PRIOR YEAR IN ADDITION TO THE PRESSURES CITED IN THE FOURTH QUARTER THE RESULTS REFLECT THE CONVERSION OF 34 COMPANYOWNED STORES TO FRANCHISE UNITS MR DOYLE SAID THE COMPANY DIDN'T EXPERIENCE A NOTICEABLE DROP IN BUSINESS FROM THE RECENT FOODPOISONING OUTBREAK TROUBLING COMPETITOR FOODMAKER INC'S JACK IN THE BOX RESTAURANTS ALTHOUGH A CARL'S JR FRANCHISEE IN LAS VEGAS REPORTED A TEMPORARY SALES DIP FOR NOW MR DOYLE SAID KARCHER ENTERPRISES WILL CONCENTRATE ON EXISTING MARKETS RATHER THAN BREAKING INTO NEW ONES THE COMPANY HAS 379 COMPANYOWNED RESTAURANTS 244 FRANCHISED RESTAURANTS AND 19 INTERNATIONAL UNITS DOMESTICALLY THE COMPANY PLANS TO ADD BETWEEN EIGHT AND 12 COMPANYOWNED RESTAURANTS AND 20 FRANCHISE UNITS THIS YEAR INTERNATIONALLY THE COMPANY WILL EXPAND IN MEXICO AND CONTINUE TO WORK WITH A LICENSEE IN MALAYSIA ANALYSTS SAY QUESTIONS LINGER MR KARCHER'S FAMILY STILL CONTROLS ABOUT 34 OF THE COMMON STOCK OUTSTANDING AND IT REMAINS TO BE SEEN HOW MUCH AUTONOMY MR DOYLE WILL HAVE AND IN 1989 MR KARCHER AND SEVERAL FAMILY MEMBERS SETTLED INSIDERTRADING CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION ALTHOUGH THE FAMILY DID NOT ADMIT OR DENY GUILT THE INCIDENT CONTINUES TO SHADOW THE COMPANY IN THE INVESTMENT COMMUNITY EVEN SO SOME THINK MR DOYLE'S NEW PLANS MAY BODE WELL THERE'S NOT BEEN MUCH LEADERSHIP AT THE COMPANY FOR SOME TIME SAID STEVEN A ROCKWELL AN ANALYST WITH ALEX BROWN & SONS DOUGLAS CHRISTOPHER OF CROWELL WEEDON & CO SAYS HE REMAINS SOMEWHAT SKEPTICAL BUT ADDS THAT THE COMPANY HAS GOOD LOCATIONS QUALITY PRODUCTS AND AN ESTABLISHED NAME ON WHICH TO BUILD 9303150040 930315 INTERNATIONAL FUTURE IS UNCERTAIN FOR RUSSIA'S YELTSIN AS PARLIAMENT GAINS THE HIGH CARDS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW LAST FALL FULL OF BRAVADO RUSSIAN PRESIDENT BORIS YELTSIN LEANED OVER IN AN AIRPORT RECEIVING LINE AND TRIED TO BUCK UP YEGOR GAIDAR HIS WORRIED PRIME MINISTER DON'T WORRY PAL MR YELTSIN SAID THEY'RE ALWAYS TELLING ME TO QUIT TOO BUT I NEVER WILL NOW NO ONE CAN BE SO SURE MR GAIDAR IS LONG GONE AND MR YELTSIN BRUISED AND BATTERED BY MONTHS OF SKIRMISHING WITH RUSSIA'S PARLIAMENT HAS LOST SO MUCH POWER THAT HIS FUTURE IS UNCERTAIN THE UNRULY PARLIAMENT NOW HOLDS MOST OF THE HIGH CARDS IT REMAINS POSSIBLE THAT THE REFORMS MR YELTSIN SET IN MOTION DURING HIS FIRST RELATIVELY PEACEFUL YEAR IN OFFICE WILL CONTINUE TO STUMBLE ALONG EVENTUALLY MR YELTSIN COULD REBUILD HIS POWER BY CLAIMING CREDIT FOR THEIR SUCCESS IT IS ALSO POSSIBLE ALTHOUGH UNLIKELY THAT MR YELTSIN COULD DECLARE PRESIDENTIAL RULE THEREBY SEIZING DICTATORIAL POWERS A THIRD POSSIBILITY IS THAT MR YELTSIN WILL BE FORCED OUT OF OFFICE BY JUNE AND REPLACED BY A POLITICIAN MORE ACCEPTABLE TO YELTSIN'S CRITICS SUCH AS VICE PRESIDENT ALEXANDER RUTSKOI MR YELTSIN IS WEAK NOW BUT HE'S NOT FINISHED SAYS ANATOLY SHABAD A PARLIAMENT MEMBER WHO SUPPORTS MR YELTSIN IF THE REFORMS ARE SUCCESSFUL HE MAY BE ABLE TO RETAIN POWER BY CLAIMING CREDIT IT WILL BE DIFFICULT BUT IT MIGHT HAPPEN LAST WEEK PARLIAMENTARY LEADERS ACHIEVED A SIGNIFICANT VICTORY OVER MR YELTSIN BY EFFECTIVELY BLOCKING HIS ABILITY TO CREATE NEW LAWS NOW THE GOVERNMENT HEADED BY THE PRIME MINISTER CAN ISSUE LEGISLATION DIRECTLY TO PARLIAMENT WITHOUT MR YELTSIN'S APPROVAL THOUGH MR YELTSIN RETAINS HIS RIGHT TO ISSUE DECREES THE PARLIAMENT GAVE ITSELF THE RIGHT TO REFER THEM TO A CONSTITUTIONAL COURT WHICH WOULD DECIDE IF THEY ARE LEGAL THAT COURT INCREASINGLY HAS BEEN RULING IN FAVOR OF PARLIAMENT FOR MONTHS THE PARLIAMENT A GROUP OF LEGISLATORS WHO EMBRACE A BREZHNEVERA SOVIET CONSTITUTION HAS CRITICIZED EVERYTHING MR YELTSIN HAS DONE BEFORE ADJOURNING SATURDAY LEGISLATORS FOR THE SECOND TIME IN A WEEK REJECTED MR YELTSIN'S CALL FOR A NATIONWIDE REFERENDUM THAT HE HAD HOPED WOULD REESTABLISH THE PRESIDENCY AS MORE POWERFUL THAN THE PARLIAMENT THEN THEY PASSED A GENERAL STATEMENT OPPOSING THE COURSE OF ECONOMIC REFORMS ASKING FOR A SLOWER TRANSITION TO THE MARKET WHEN THE PARLIAMENT NEXT MEETS IN JUNE IT MAY ASK THE PRIME MINISTER TO APPOINT A NEW GOVERNMENT THE EFFECT OF THIS COULD SIGNIFICANTLY SLOW THE REFORMS THE PARLIAMENTARY MAJORITY IS GUNNING FOR THE REMOVAL OF FOREIGN MINISTER ANDREI KOZYREV WHO IS SEEN AS TOO CONCILIATORY TO THE WEST AND ANATOLY CHUBAIS WHO HEADS THE PRIVATIZATION EFFORT THE PARLIAMENT BELIEVES PRIVATIZATION IS PROGRESSING TOO QUICKLY THERE ARE TWO WAYS OUT OF THE ECONOMIC CRISIS SAYS VLADIMIR SHUMEIKO DEPUTY PRIME MINISTER ONE IS TO CONTINUE THE ECONOMIC REFORMS BEGUN TWO YEARS AGO WHICH MEANS RESTRUCTURING THE ECONOMY CARRYING OUT TOUGH FINANCIAL POLICY AND CONTINUING FAST PRIVATIZATION THE OTHER OPTION IS A SLOWER MOVEMENT TO THE MARKET SLOWER PRIVATIZATION STATE CONTROLLED PRICES AND SO ON IN MY OPINION THIS WOULD MEAN THE END OF REFORMS BUT THE NEW POWER STRUCTURE ALSO COULD PRODUCE POSITIVE DEVELOPMENTS THE PARLIAMENT AND GOVERNMENT NOW WILL BEAR JOINT RESPONSIBILITY FOR THE COUNTRY'S ECONOMIC FUTURE FOR EXAMPLE FOR THE FIRST TIME THE HEAD OF THE CENTRAL BANK IS A CABINET MEMBER AND IS RESPONSIBLE FOR COORDINATING POLICY WITH THE GOVERNMENT IN THE PAST THE BANK HAS ONLY HAD TO ANSWER TO PARLIAMENT AND HAS BEEN FUELING INFLATION BY PROVIDING UNLIMITED CREDITS TO VARIOUS ENTERPRISES IF ANYTHING GOES WRONG THEN YELTSIN CAN SAY IT'S BECAUSE OF PARLIAMENT AND HIS IMAGE CAN IMPROVE SAYS AN AIDE TO MR YELTSIN EARLIER HE WAS TAKING RESPONSIBILITY FOR ALMOST EVERYTHING THERE IS ALSO SOME POSSIBILITY THAT THE GOVERNMENT WILL PUSH THE REFORMS THOUGH VICTOR CHERNOMYRDIN THE PRIME MINISTER CHOSEN BY THE PARLIAMENT WASN'T INITIALLY CONSIDERED A REFORMER HE HAS GIVEN A NUMBER OF SPEECHES OUTLINING STRATEGIES THAT SOUND MORE IN TUNE WITH MR YELTSIN THAN WITH THE PARLIAMENT PRIVATIZATION HAS TURNED OUT TO BE QUITE POPULAR MR YELTSIN STOMPED OUT OF THE PARLIAMENT FRIDAY VOWING NEVER TO RETURN SINCE THEN HE HAS SAID NOTHING MANY HAD EXPECTED HE WOULD APPEAR ON TELEVISION OVER THE WEEKEND TO MAKE AN APPEAL TO THE PEOPLE WITH WHOM HE REMAINS POPULAR IN THE PAST HE HAS TALKED ABOUT CALLING FOR NEW ELECTIONS AND BANNING THE PARLIAMENT BUT BOTH OF THESE STEPS CANNOT BE TAKEN CONSTITUTIONALLY BECAUSE PARLIAMENT WON'T AGREE TO THEM PRESIDENTIAL RULE IS AN EXPLOSIVE ISSUE ALREADY MINERS IN THE KUZBASS REGION THE MOST POWERFUL LABOR GROUP IN RUSSIA HAVE BEEN THREATENING A STRIKE TO SUPPORT THE IDEA EXPERTS WORRY THAT STRIKES OR MASS RALLIES ON EITHER SIDE OF THE ISSUE COULD LEAD TO STREET CLASHES MR YELTSIN'S ADVISERS SAY THE PRESIDENT ISN'T CONSIDERING ANY UNCONSTITUTIONAL MEASURES PRESIDENTIAL RULE IS COMPLETELY BEYOND THE CONSTITUTION AND BEYOND DISCUSSION SAYS MR SHABAD SOME YELTSIN SUPPORTERS WORRY THAT THE PRESIDENT MAY BE GIVING UP HE DOESN'T SEEM READY TO CONTINUE THE TOUGH FIGHT FOR POWER SAYS CONSTANTINE REMCHIKOV AN ECONOMIST IF SENTIMENT AGAINST MR YELTSIN CONTINUES TO GROW THE PARLIAMENT COULD START IMPEACHMENT PROCEEDINGS AGAINST HIM IN JUNE SUCH ATTEMPTS HAVE FAILED IN THE PAST BUT MR YELTSIN WAS STRONGER THEN OPPOSITION TO MR YELTSIN HAS CENTERED ON HIS ECONOMIC PROGRAM AND CHARGES THAT HE HAS BECOME A PUPPET OF THE WEST MANY RUSSIANS ARE ANGRY THAT THE WEST ONLY TALKS IN TERMS OF ECONOMIC AID INSTEAD OF LETTING RUSSIA JOIN IMPORTANT ORGANIZATIONS SUCH AS THE GROUP OF SEVEN INDUSTRIALIZED NATIONS WESTERN DEMOCRACIES MUST SEIZE THE PROBLEMS OF RISING DEMOCRACIES LIKE THEY WERE ONE OF THEIR OWN SAYS THE AIDE TO MR YELTSIN IT'S NOT JUST ABOUT GIVING MONEY BUT ABOUT MORAL SUPPORT MR YELTSIN'S CRITICS WARN THAT THE US AND OTHER WESTERN COUNTRIES HAD BETTER CONSIDER THE POSSIBILITY THAT SOMEBODY ELSE SUCH AS MR RUTSKOI MIGHT BE RUNNING RUSSIA SOON IT ISN'T WISE FOR THE US TO SAY WE FULLY SUPPORT YELTSIN' SAYS MIKHAIL AFSTAVIEV A YELTSIN OPPONENT IN PARLIAMENT I SUPPOSE THAT VERY QUICKLY EVEN BY JUNE HE'LL BE OUT OF POWER 9303150039 930315 CANADA POSTS RISE IN BUDGET DEFICIT AS CONCERN GROWS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT REGISTERED ANOTHER BIG BUDGET DEFICIT IN JANUARY HEIGHTENING FEARS ABOUT ITS MOUNTING DEBT THE JANUARY DEFICIT TOTALED 397 BILLION CANADIAN DOLLARS US319 BILLION UP FROM A YEAREARLIER DEFICIT OF C376 BILLION THE FINANCE DEPARTMENT SAID GOVERNMENT OFFICIALS BLAMED THE FISCAL DETERIORATION ON WEAK TAX REVENUE AND ON DEBTSERVICE COSTS THAT ARE SWALLOWING MORE THAN 33 CENTS OF EVERY DOLLAR OF TAX REVENUE THE BIG DEFICIT IS CAUSING GROWING CONCERN IN FINANCIAL MARKETS THE ACCUMULATION OF BOTH GOVERNMENT DEBT AND CANADA'S FINANCIAL LIABILITIES TO FOREIGNERS HAS NOW REACHED CRITICAL PROPORTIONS SOME WOULD EVEN SAY CRISIS PROPORTIONS BANK OF NOVA SCOTIA CHAIRMAN CE RITCHIE SAID RECENTLY FEDERAL AND PROVINCIAL GOVERNMENT DEBT COMBINED TOTALS ABOUT C665 BILLION OR 96 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT GDP IS THE TOTAL VALUE OF A COUNTRY'S OUTPUT OF GOODS AND SERVICES THE GOVERNMENT IN DECEMBER RAISED ITS DEFICIT ESTIMATE FOR FISCAL 1993 ENDING MARCH 31 TO C344 BILLION FROM A PREVIOUS ESTIMATE OF C275 BILLION BUT FRIDAY'S FIGURES FOR JANUARY INDICATED THAT THE DEFICIT WOULD OVERSHOOT THE DECEMBER ESTIMATE THE FIGURES SHOWED THAT FOR THE FIRST 10 MONTHS OF THE CURRENT FISCAL YEAR THE DEFICIT ALREADY TOTALED C3121 BILLION FINANCE MINISTER DON MAZANKOWSKI TOLD REPORTERS THAT THE GOVERNMENT'S REVENUE HASN'T IMPROVED AS HAD BEEN HOPED IN DECEMBER PERSONAL INCOMETAX REVENUE IN JANUARY WAS DOWN 59 FROM A YEAR EARLIER REFLECTING WEAKERTHANEXPECTED ECONOMIC ACTIVITY CORPORATE TAX REVENUE WAS DOWN 272 MR MAZANKOWSKI CITING THE GOVERNMENT'S FINANCIAL SQUEEZE HAS REFUSED APPEALS FROM MANY OF HIS POLITICAL COLLEAGUES TO BE A CANDIDATE IN THE PROGRESSIVE CONSERVATIVE PARTY CONVENTION IN JUNE THAT WILL PICK A SUCCESSOR TO PRIME MINISTER BRIAN MULRONEY WHO ANNOUNCED FEB 24 HIS INTENTION TO RESIGN THE FINANCE MINISTER INTENDS TO ANNOUNCE SOON A BUDGET OR AN ECONOMIC STATEMENT THAT IS EXPECTED TO INCLUDE NEW SPENDING CURBS TO REASSURE FINANCIAL MARKETS FOREIGN INVESTORS HOLD ABOUT 25 OF THE FEDERAL GOVERNMENT'S BONDS AND ABOUT 40 OF PROVINCIAL GOVERNMENT BONDS WILLIAM MACKNESS DEAN OF THE UNIVERSITY OF MANITOBA'S MANAGEMENT FACULTY AND A LONGSTANDING CRITIC OF CANADIAN GOVERNMENT DEFICITS SAID CANADA'S SITUATION IS MUCH MORE DIFFICULT THAN THAT OF THE US BECAUSE THE PERCENTAGE OF CANADIAN GOVERNMENT REVENUE THAT HAS TO BE USED FOR DEBT SERVICE IS ABOUT TWICE THAT OF THE US GOVERNMENT HE SAID CANADA WILL PROBABLY KEEP THIS NONSENSE UP UNTIL FOREIGN FINANCIAL MARKETS START TO COLDSHOULDER CANADIAN DEBT OFFERINGS MR MAZANKOWSKI DOESN'T PLAY DOWNY THE MATTER CANADA IS LIKE THE CREDITCARD HOLDER WHO HAS ALMOST REACHED HIS CREDIT LIMIT HE SAYS 9303150038 930315 PEOPLE ARE HUGGING A LOT MORE NOW AND SEEM TO LIKE IT PRESIDENT CLINTON IS A HUGGER AS WELL AS A TRENDSETTER CERTAIN ILLFATED EMBRACES BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THEY ARE LIVING IT UP AT THE BRONX YMCA SENIOR CENTER THELMA GERTLER AND JEAN WIESEN ARE DANCING THE MERENGUE FRAN STATLER IS TRYING TO GET BILL JONES ONTO THE DANCE FLOOR SID SEIDMAN A RETIRED GOOD HUMOR MAN IS SINGING UNFORGETTABLE AND CHARLES FARAONE IS HERE TO TEACH EVERYBODY TO HUG AS IF THESE PEOPLE NEEDED ENCOURAGEMENT MR FARAONE WHO IS 45 USED TO GIVE HUG SEMINARS HE USED TO SELL LET'S HUG BUTTONS A BOOK BY THE SAME NAME AND AS A JOKE HUGGING LICENSES BUT HUGS WERE IN THE DOLDRUMS DEMAND SAGGED MR FARAONE RECENTLY SOLD HIS NOVELTY BUSINESS BUT JUST WHEN HE THOUGHT HIS HUGGING DAYS WERE BEHIND HIM PEOPLE ARE SEEKING OUT HIS SERVICES AGAIN HUGS ARE MAKING A COMEBACK THE HUGGER IN THE WHITE HOUSE MAY BE PART OF THE REASON PRESIDENTIAL ORDER THIS IS OUR TIME PRESIDENT CLINTON SAID IN HIS INAUGURAL ADDRESS LET US EMBRACE IT HOURS INTO HIS PRESIDENCY HE ISSUED ONE OF HIS FIRST IMPERATIVES AT THE ARKANSAS INAUGURAL BALL STAY LATE AND HUG ONE ANOTHER WHILE HUG PROFESSIONALS WELCOME THE PRESIDENT'S CALL TO OPEN ARMS THEIR RANKS HAD THINNED IN RECENT YEARS JOHN MCKENZIE FOR EXAMPLE STARTED PITTSBURGH'S INTERNATIONAL HUG CENTER 12 YEARS AGO TO PROMOTE NEIGHBORLINESS BUT HE SAYS DURING THE REAGANBUSH ERA A LOT OF PEOPLE WERE HUGGING THEN STABBING EACH OTHER IN THE BACK THE NEXT MINUTE DISGUSTED MR MCKENZIE GAVE UP AND MOVED TO BERKELEY TO ORGANIZE CONFERENCES LEAVING HIS MOTHER IN PITTSBURGH TO ANSWER THE ODD HUG CENTER LETTER THAT STILL COMES IN HUGGING OBVIOUSLY IS GOOD FOR YOU PARENTS AND CHILDREN KNOW THAT LOVERS DO TOO IT'S SAFE SEX RESEARCHERS SAY TOUCH IN GENERAL REDUCES ANXIETY INCREASES SELFESTEEM AND PROVIDES A CONNECTION FOR NEWBORNS WHOSE SENSES ARE DEVELOPING AND FOR THE ELDERLY WHOSE SENSES ARE WANING HUGGING A FIRM FORM OF TOUCH STIMULATES THE NERVOUS SYSTEM WITHOUT TOUCH RESEARCHERS SAY THE ORGANISM DOESN'T THRIVE AND MAY NOT SURVIVE STUDIES OF ORPHANAGES HAVE PROVED THAT NOT THAT HUGGING DOESN'T SOMETIMES MAKE WAVES AFTER THE REV JESSE JACKSON SAID THAT CINCINNATI REDS OWNER MARGE SCHOTT'S RACIAL SLURS HAVE DONE GRAVE INJURY TO OUR SOCIETY AND BASEBALL HE HUGGED HER IN HIS TIME THE REV MR JACKSON HAS HUGGED FIDEL CASTRO WHO HAS HUGGED MIKHAIL GORBACHEV WHO HAS HUGGED RONALD REAGAN WHO HAS HUGGED THIS COULD GO ON AND ON IN 1979 MR JACKSON EMBRACED PLO LEADER YASSER ARAFAT COSTING THE DEMOCRAT VOTES IN THE 1984 PRESIDENTIAL PRIMARIES MR ARAFAT HIMSELF JEOPARDIZED THE MIDDLE EAST PEACE TALKS WHEN HE HUGGED PALESTINIAN NEGOTIATOR HANAN ASHRAWI LAST JUNE DURING THE GULF WAR MR ARAFAT EMBRACED SADDAM HUSSEIN THE INOPPORTUNE HUGGING MAY HAVE HARMED THE PALESTINIAN CAUSE HUGS AMONG PUBLIC FIGURES TEND TO RUN THE GAMUT FROM MEANINGLESS TO INSINCERE BUT THERE IS THE OCCASIONAL PRIVATE MOMENT THAT IS SORT OF SWEET WITNESS THIS AFTER DAVID SOUTER WAS CONFIRMED TO THE SUPREME COURT IN 1990 HE MET HIS PREDECESSOR JUSTICE WILLIAM BRENNAN IN THE ELDER'S CHAMBERS HE HUGGED ME AND HE HUGGED ME JUSTICE SOUTER TOLD WASHINGTON'S HARVARD CLUB IN SEPTEMBER AND HE WENT ON HUGGING ME FOR A VERY VERY LONG TIME HUG PROFESSIONAL KATHLEEN KEATING THINKS HUGS HAVE A BRILLIANT FUTURE THE AUTHOR OF TWO BOOKS PROMOTING HUG THERAPY SHE SAYS PEOPLE WANT TO GET BACK IN TOUCH WITH OTHER PEOPLE AND JO LINDBERG FOUNDER OF THE HUGS FOR HEALTH FOUNDATION SAYS AN UNEXPECTEDLY HIGH 65 OF VISITORS TO THE ORANGE COUNTY FAIR LAST JULY STOPPED AT HER HUG BOOTH FOR A FREE ONE MS LINDBERG'S HUGS FOR HEALTH FOUNDATION PROMOTES HUGGING IN HOSPITALS PATIENTS DO BETTER IN GENERAL WHEN THEY'RE TOUCHED AND FEEL LOVED SAYS CHARLENE WEISS OF THE NATIONAL CENTER FOR NURSING RESEARCH THE UNWELCOME HUG BUT HUGGING ISN'T ALWAYS HEALTHY AND DONE IN THE WRONG PLACE AT THE WRONG TIME WITH THE WRONG PERSON IT CAN GET ONE IN TROUBLE INCREASED PUBLIC AWARENESS OF SEXUAL HARASSMENT AND ABUSE HAS EVEN MADE THERAPISTS VERY TOUCHY ON THE SUBJECT AFTER THE ANITA HILL HEARING I THOUGHT I'D NEVER WORK AGAIN SAYS MOTIVATIONAL SPEAKER GREG RISBERG OF ELMHURST ILL WHO GIVES 2000 LECTURES MAINLY TO HEALTHCARE AUDIENCES ON THE IMPORTANCE OF HUGGING PEOPLE WERE GETTING STANDOFFISH HE STILL CAUTIONS HIS AUDIENCES AGAINST HUGGING WITHOUT PERMISSION BUT HE SAYS WE'RE STILL WILLING TO HUG BECAUSE WE SEE THE NEED FOR IT BECAUSE HE HADN'T HELD A HUG WORKSHOP FOR EIGHT YEARS MR FARAONE SAYS HE IS A LITTLE RUSTY AS HE ANSWERS THE CALL FROM THE BRONX YMCA SENIOR CITIZENS SIXTY PEOPLE ARE AT TABLES EATING CAKE AND KIBITZING MR FARAONE TRIES TO QUIET THE ROOM THIS IS A TOUGH CROWD HE MUMBLES I CAME HERE BECAUSE I TRULY BELIEVE IN HUGGING HE SHOUTS THE DIN CONTINUES FRIEDA MERSON IS ASKING WHERE SHE SHOULD SIT AND SARAH COHEN CAN'T HEAR OVER THE TALKING I HAVE FOUR PAGES OF NOTES AND I CAN SEE THAT THERE'S NO WAY WE'RE GONNA GET THROUGH THEM MR FARAONE SAYS DOES ANYONE KNOW THE MINIMUM DAILY ALLOWANCE OF HUGS HE CALLS OUT AS MANY AS YOU CAN GET SHOUTS MRS STATLER MR FARAONE AND MRS STATLER DEMONSTRATE SOME OF THE STANDARD POSITIONS THE AFRAME THE SIDETOSIDE HUG THE FULL FRONTAL HUG MR FARAONE IS FLYING THROUGH HIS TEXT HE SKIPS OVER THE HAND HUG REALLY JUST A HANDSHAKE HE SKIPS HIS HUG PROVERB GIVE A MAN A HUG NOURISH HIM FOR A MOMENT TEACH A MAN TO ASK FOR HUGS NOURISH HIM FOR A LIFETIME HE SHOUTS WHOA YOU HAVE TO LISTEN HERE BECAUSE YOU'RE GOING TO BE DOING SOMETHING HE STOPS AT PAGE THREE ITEM 13 AUDIENCE PARTICIPATION HE ASKS EVERYBODY TO HUG FOUR OTHER PEOPLE IN MOMENTS THERE IS CHAOS SHIRLEY EASANU IS HUGGING LOU GILBERT ALICE CARVER AND MURIEL LUDWIG HAVE PAIRED UP TO GO ON A HUG HUNT KITCHEN VOLUNTEERS ARE WORKING THE CROWD AND JACQUELINE BIUSIE IS HEADING FOR HER THIRD HUG FROM MR FARAONE JUST FIVE MORE MINUTES MR FARAONE SHOUTS BUT NOW HE CAN'T STOP THE HUGGING HE WANTS TO AWARD AN OFFICIAL HUGGER TSHIRT BUT THINGS HAVE GONE TOO FAR EVERYONE IS TOO BUSY TO PAY ATTENTION 9303150037 930315 CONSOLIDATED FREIGHTWAYS DEALT SETBACK ON PROXIES BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION REFUSED TO DISALLOW PROXY RESOLUTIONS PROPOSED BY TWO EMPLOYEESHAREHOLDERS OF CONSOLIDATED FREIGHTWAYS INC THE PALO ALTO CALIF FREIGHTTRANSPORT COMPANY HAD OPPOSED ADDING THE RESOLUTIONS TO ITS PROXY BALLOT ARGUING THAT THE TWO EMPLOYEES WERE BEING USED SIMPLY TO ADVANCE THE INTERESTS OF THE TEAMSTERS UNION WITH WHICH THE COMPANY IS IN A LABOR DISPUTE THE SEC REJECTED THE COMPANY'S ARGUMENT SUCH DECISIONS ARE LOOKED TO BY COMPANIES AND SHAREHOLDERS FOR GUIDANCE IN SIMILAR DISPUTES AND THIS PARTICULAR CASE WAS BEING WATCHED AS A POSSIBLE PRECEDENTSETTING TEST OF NEW RIGHTS GIVEN SHAREHOLDERS BUT THE INJECTION OF THE UNION ISSUE MAY CLOUD THE DECISION'S APPLICABILITY IN OTHER CASES THE CASE IS SIGNIFICANT BECAUSE IT IS THE FIRST EXAMPLE OF EMPLOYEESHAREHOLDERS USING THE NEW SEC RULES TO EXERCISE THEIR SHAREHOLDER RIGHTS EASILY AND SIMPLY IN A MAJOR CORPORATION SAID JOSEPH BLASI A PROFESSOR AT THE INSTITUTE OF MANAGEMENT AND LABOR RELATIONS AT RUTGERS UNIVERSITY IN NEW BRUNSWICK NJ MR BLASI CALLED THE DECISION THE BEGINNING OF A BIG PUSH BY EMPLOYEES WHO OWN SHARES OF THEIR EMPLOYERS BUT THE LAWYER FOR THE TWO EMPLOYEESHAREHOLDERS ANDREW J KAHN OF SAN FRANCISCO SAID HE VIEWED THE DECISION AS MORE FAVORABLE TO A UNION'S ASSISTANCE IN THEIR MEMBERS' EFFORTS TO BE INVOLVED IN CORPORATE GOVERNANCE THE TWO SHAREHOLDERS HAD ACKNOWLEDGED IN THEIR SEC FILINGS THAT THE TEAMSTERS UNION HELPED THEM WITH PHOTOCOPYING AND CLERICAL SUPPORT ANY SMALL SHAREHOLDER IS GOING TO NEED HELP FROM EXPERTS AND CLERICAL SUPPORT MR KAHN SAID THE SEC RECOGNIZED THAT NO SHAREHOLDER IS AN ISLAND AND UNIONS AREN'T ILLEGITIMATE ORGANIZATIONS THE EMPLOYEES HAD REQUESTED TWO SEPARATE PROXY RESOLUTIONS ONE CALLS FOR THE ELECTION OF CONSOLIDATED FREIGHTWAYS' 13 DIRECTORS ALL AT ONCE RATHER THAN IN STAGGERED TERMS AND THE OTHER SEEKS REVOCATION OF CERTAIN TAKEOVER DEFENSES THE COMPANY IN FILINGS WITH THE SEC SAID SHAREHOLDERS HAD APPROVED STAGGERED TERMS FOR DIRECTORS IN THE MID1980S AND HAVE ALREADY VOTE THREE TIMES AGAINST REVOKING THE TAKEOVER DEFENSES JAMES R ALLEN CONSOLIDATED FREIGHTWAYS VICE PRESIDENT SAID THE COMPANY HADN'T DECIDED WHETHER TO APPEAL THE SEC DECISION IN LIGHT OF THE MAILING SCHEDULE FOR ITS PLANNED APRIL 26 ANNUAL MEETING MR ALLEN SAID THE COMPANY DIDN'T THINK THE RESPONSE OF THE SEC WAS INCONSISTENT WITH WHAT THEY'VE BEEN DOING IN THE PAST UNDER THE NEW RULES THE SEC IS GIVING WIDER LATITUDE TO SHAREHOLDERS' PROXY PROPOSALS 9303150036 930315 TECHNOLOGY & HEALTH NOVELL TO LAUNCH OPERATING SOFTWARE TO RIVAL MICROSOFT BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL PROVO UTAH NOVELL INC SAID IT PLANS TO INTRODUCE ITS OWN PERSONALCOMPUTER OPERATING SOFTWARE THAT WILL HAVE THE POWER TO RUN APPLICATIONS WRITTEN FOR MICROSOFT CORP'S MSDOS AND WINDOWS PROGRAMS THE MOVE IS A DIRECT CHALLENGE TO MICROSOFT'S DOMINATION OF OPERATING SOFTWARE THOSE PROGRAMS THAT CONTROL THE BASIC FUNCTIONS OF A COMPUTER NOVELL THE LEADING SUPPLIER OF SOFTWARE THAT ENABLES PCS TO SHARE FILES AND PERIPHERALS ON NETWORKS IS WIDELY VIEWED AS PERHAPS THE ONLY INDEPENDENT SOFTWARE COMPANY WITH THE SIZE AND SCOPE TO WRESTLE WITH MICROSOFT FOR CONTROL OF DESKTOP PC SOFTWARE LAST DECEMBER NOVELL STRENGTHENED ITS POSITION AGAINST MICROSOFT BY AGREEING TO PURCHASE AN ADVANCED OPERATING SYSTEM CALLED UNIX FROM AMERICAN TELEPHONE & TELEGRAPH CO IT IS THIS OPERATING SYSTEM THAT WILL PROVIDE THE FOUNDATION FOR NOVELL'S FORAY INTO MICROSOFT'S TURF A SPOKESMAN FOR NOVELL SAID THE COMPANY BRIEFED SOME ANALYSTS ON ITS PLANS LATE FRIDAY AND THAT IT EXPECTS TO PUBLICLY GIVE DETAILS TODAY NOVELL'S PLAN IS TWOFOLD SHARPLY REDUCE THE PRICE OF A PCVERSION OF UNIX AND MAKE IT POSSIBLE FOR THIS VERSION OF UNIX TO RUN POPULAR MSDOS AND WINDOWS APPLICATIONS NOVELL IS NOT THE ONLY COMPANY TRYING TO WIN A SLICE OF THE PC OPERATING SOFTWARE BUSINESS BY OFFERING MSDOS AND WINDOWS CAPABILITIES TO CUSTOMERS INTERNATIONAL BUSINESS MACHINES CO ALREADY OFFERS OS/2 WHICH ESSENTIALLY DOES THE SAME THING AND SUN MICROSYSTEMS INC WHICH SELLS AN OPERATING SYSTEM CALLED SOLARIS IS EXPECTED TO ANNOUNCE ON MARCH 29 A NEW VERSION OF SOLARIS THAT FOR THE FIRST TIME WORKS ON PCS AND ALSO RUNS MSDOS AND WINDOWS APPLICATIONS WHILE THE EFFORTS BY NOVELL SUN AND IBM ARE AIMED AT LOOSENING MICROSOFT'S HOLD OVER PC OPERATING SOFTWARE THEY COULD EVEN HELP MICROSOFT IN THE SHORTTERM BY BOOSTING ENTHUSIASM FOR WINDOWS MICROSOFT IS BY FAR THE BIGGEST SUPPLIER OF WINDOWS APPLICATIONS IN AN INTERVIEW FRIDAY SENIOR EXECUTIVES AT MICROSOFT WERE SKEPTICAL THAT ANY OF ITS RIVALS IN OPERATING SOFTWARE COULD MAKE MUCH HEADWAY BY OFFERING ALTERNATIVES THAT PROMISED WINDOWS AND MSDOS FUNCTIONALITY MICROSOFT PLANS NEW VERSIONS OF WINDOWS AND MSDOS THAT WILL MAKE IT VIRTUALLY IMPOSSIBLE FOR NOVELL SUN OR IBM TO GUARANTEE THAT THEIR OPERATING SOFTWARE WILL RUN FUTURE WINDOWS AND MSDOS APPLICATIONS SAID MICHAEL MAPLES AN EXECUTIVE VICE PRESIDENT AT THE SAME TIME MICROSOFT PLANS TO COMPETE FIERCELY FOR THE HIGHEND OF THE OPERATING SOFTWARE BUSINESS CURRENTLY DOMINATED BY SUN NOVELL AND OTHER UNIX SUPPLIERS WITH A VERSION OF WINDOWS CALLED NT IT PLANS TO RELEASE IN LATE MAY 9303150035 930315 SLOANS 3 OFFICERS RAN COUPON SCAM PROSECUTORS CHARGE BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEDERAL PROSECUTORS CHARGED SLOANS SUPERMARKETS INC AND ITS THREE TOP OFFICERS WITH OPERATING A COUPON SCAM THAT DEFRAUDED MANUFACTURERS OF AT LEAST 35 MILLION OVER 10 YEARS THE GOVERNMENT ALSO FILED A CIVIL LAWSUIT SEEKING THE FORFEITURE OF THE ENTIRE SLOANS CHAIN ONE OF THE LARGEST IN NEW YORK BECAUSE OF ITS INVOLVEMENT IN THE ALLEGED FRAUD IN RESPONSE TO THE SUIT A US MAGISTRATE JUDGE ISSUED A COURT ORDER ALLOWING FOR THE APPOINTMENT OF A MONITOR TO OVERSEE THE OPERATIONS OF SLOANS AND TO PREVENT THE DISSIPATION OF ITS ASSETS FEDERAL PROSECUTORS CHARGED JULES ROSE SLOANS' PRESIDENT AND CHIEF EXECUTIVE OFFICER GARY MEYER ITS SECRETARYTREASURER AND STEPHEN E KARSCH VICE PRESIDENT WITH MAIL FRAUD AND MONEY LAUNDERING THE THREE MEN WERE RELEASED ON 200000 BOND EACH MR ROSE AND HIS LAWYER DECLINED TO RESPOND TO QUESTIONS ABOUT THE ALLEGATIONS AN ATTORNEY FOR THE TWO OTHER MEN SAID THEY WOULD PLEAD INNOCENT TO THE CHARGES SLOANS'S POSTURE IS THAT THEY WERE TAKEN BY SURPRISE SAID ROBERT MORVILLO THE LAWYER WHO REPRESENTS THE CLOSELYHELD SUPERMARKET CHAIN HE SAID THAT SLOANS COULDN'T YET RESPOND TO SPECIFIC ALLEGATIONS BUT HE ADDED THAT PROSECUTORS HAVE MISTAKENLY SOUGHT CONTROL OF 15 STORES THAT HAD BEEN SOLD TO ANOTHER CHAIN PROSECUTORS SAY THAT THEY FILED THE FORFEITURE ACTION BECAUSE SLOANS WAS PLANNING TO SELL ITS REMAINING STORES ACCORDING TO COURT PAPERS FILED BY PROSECUTORS SLOANS BOUGHT IN BULK COUPONS CLIPPED FROM NEWSPAPERS FOR ABOUT 40 OF THEIR FACE VALUE SLOANS ALLEGEDLY TURNED IN THOSE COUPONS FOR REDEMPTION TO NATIONAL COUPON CLEARINGHOUSES OR DIRECTLY TO MANUFACTURERS AS IF THEY HAD BEEN USED BY CUSTOMERS AT ONE OF THEIR SUPERMARKETS THE FRAUD WENT ON FROM THE LATE 1970S UNTIL 1989 PROSECUTORS SAY THE LAWSUIT HIGHLIGHTS THE POWER OF THE MONEY LAUNDERING STATUTE WHICH ALLOWS THE GOVERNMENT TO SEIZE PROPERTY LIKE THE CONTROVERSIAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATONS ACT THE MONEY LAUNDERING STATUTE CAN BE USED TO TAKE OVER WHOLE BUSINESSES IN THIS CASE GOVERNMENT LAWYERS ARGUE THAT THE ENTIRE CHAIN SHOULD BE FORFEITED BECAUSE THE THREE OFFICERS USED SLOANS STORES TO FURTHER THE COUPON REDEMPTION SCAM AND TO MAKE IT DIFFICULT FOR THE SCHEME TO BE DETECTED 9303150034 930315 LEISURE & ARTS THEATER UPROAR OVER UPDATED OLDIES BY DAVID LITTLEJOHN SAN FRANCISCO ADMIRERS OF OLDER ENGLISH AND AMERICAN PLAYS FEARFUL THAT THEIR FAVORITES ARE BEING DISPLACED BY NEWER LESS SUBSTANTIAL WORKS MAY BE PLEASED TO DISCOVER THAT THE REGIONAL REPERTORY THEATERS OF THIS COUNTRY CONTINUE TO OFFER WORKS BY THE OLD MASTERS OF SOME 1300 PLAYS SCHEDULED FOR PRODUCTION THIS SEASON BY MORE THAN 200 NONPROFIT TROUPES SHAKESPEARE STILL LEADS THE LIST WITH MORE THAN 60 PRODUCTIONS MOLIERE SHAW AND TENNESSEE WILLIAMS ALSO MADE THE TOP 10 ALONG WITH CRAIG LUCAS TERRENCE MCNALLY AND THE USUAL DECEMBER DRAMATIZATIONS OF A CHRISTMAS CAROL AMERICAN CITY DWELLERS STILL HAVE A REASONABLE CHANCE OF SEEING IN THEIR HOME TOWNS PLAYS BY SOPHOCLES IBSEN CHEKHOV WILDER COWARD BRECHT BECKETT AND PINTER BUT OF THE OVERRIPE ARRAY OF PLAYS WRITTEN BY SHAKESPEARE'S NEARCONTEMPORARIES ONCE A STAPLE OF THE ENGLISHLANGUAGE THEATER ONLY THREE WORKS WERE SCHEDULED FOR PROFESSIONAL PRODUCTION IN 19921993 I'VE JUST SEEN TWO OF THEM JOHN WEBSTER'S THE DUCHESS OF MALFI 1614 AND BEN JONSON'S VOLPONE 1606 WERE PERFORMED AT THE SAME TIME THIS MONTH BY SAN FRANCISCO'S AMERICAN CONSERVATORY THEATER ACT AND THE BERKELEY REPERTORY THEATRE AND THEY CAUSED AN UPROAR IN SUPPOSEDLY LIBERAL SAN FRANCISCO AS IN SUPPOSEDLY FREETHINKING BERKELEY ONE HEARD OF AUDIENCE MEMBERS WHO BOOED AND HISSED WALKED OUT IN LARGE NUMBERS CANCELED SUBSCRIPTIONS AND WROTE ANGRY LETTERS OF PROTEST IN BOTH CITIES PRODUCERS AND CRITICS LEAPT TO THE DEFENSE OF THESE SHOCKING INTERPRETATIONS AND TRIED TO EXPLAIN WHY THE UPDATING THE GROTESQUERIES THE MAD MUSIC THE NUDITY THE ONSTAGE RAPE AND TORTURE SCENES WERE ESSENTIAL IF THESE HOKEY OLD PLAYS WERE TO BE RENDERED RELEVANT AND PERFORMABLE IN 1993 BARE FLESH ONSTAGE SHOULD NO LONGER BE THAT BIG A DEAL THE THEATRICAL EXPERIENCE ERIC BENTLEY ONCE POINTED OUT IS ALL ABOUT EXHIBITIONISM AND VOYEURISM I'VE SEEN NAKED PEOPLE ONSTAGE IN HALF A DOZEN SERIOUS PRODUCTIONS RECENTLY AND WAS A BIT SURPRISED AT THE GASPS AND GIGGLES HERE AS WELL AS THE OUTRAGE OF COURSE THE NUDITY IN THESE TWO PRODUCTIONS LIKE THE EXTRAVAGANT SCENES OF TORTURE AND SEXUAL ABUSE WAS THE DIRECTORS' IDEA NOT THE PLAYWRIGHTS' AND THAT DOES MAKE A DIFFERENCE IN ANTHONY TACCONE'S VERSION OF VOLPONE HEAVILY CUT AND REWRITTEN INTO EASYLISTENING AMERICAN THE BAREBOTTOMED MUSICIANS AND JOCKSTRAPPED VOLPONE WERE WE WERE TOLD MEANT TO SIGNIFY THE MORAL DECADENCE OF JONSON'S VENICE ORIGINALLY A SYMBOL OF WICKED JACOBEAN LONDON NOW I SUPPOSE IT REPRESENTED DECADENT CALIFORNIA BUT LIKE MOST OF THE RAUNCHY ROWDY CARRYINGSON A LIVE SNAKE A RUBBER DILDO GIANT CODPIECES FULL CHAMBER POTS THE NEARNUDITY LOOKED LIKE SOME ACT IMPORTED FROM A GAY HALLOWEEN BALL RATHER THAN ANYTHING MEANT TO BE TAKEN SERIOUSLY A GOOD CASE HAS BEEN MADE FOR SEEING VOLPONE NOT AS A PIECE OF SAVAGE MORALIZING AS PEOPLE USED TO VIEW IT BUT AS A WORK OF THEATER ABOUT THEATER ABOUT THE FIERCE NONMORAL JOY OF ACTING ROLE PLAYING AND DECEIVING DUMB AUDIENCES PETER WOMACK HAS ARGUED VIGOROUSLY FOR PERFORMING JONSON'S FRENETIC DENSELY OVERWRITTEN COMEDIES IN THE MAD MORALLY INVERTED STYLE OF CARNIVAL IN WHICH A PLAGUERIDDEN POPULATION GOES ALL MANIC AND STARTS OVERTURNING ROLES AND VALUES BUT MR TACCONE'S VERSION SEEMED ALL SHOCKING GAUDY SURFACE A GIDDY MESS WITH NO CONCEPTUAL CENTER THE VOGUISH ONSTAGE SPECTACLE ALONG WITH THE HEAVY EDITING AND REWRITING SUGGESTED THAT HE HAD GIVEN UP TRYING TO COMMUNICATE MUCH OF THE PLAY BY WORDS THE MOST MAGICAL SCENE OF THE PLAY IN WHICH VOLPONE TRIES TO SEDUCE THE VIRTUOUS CELIA WITH LINE AFTER LINE OF MAGNIFICENT DIABOLICAL VERSE WAS REDUCED TO THE ENERGETIC WRESTLING OF A NAKED MIDDLEAGED ACTOR JOHN O'KEEFE WITH A DARKSKINNED DAME IN A FARTHINGALE HOOP THE DUCHESS OF MALFI GOT VERY DIFFERENT TREATMENT THERE WAS NOTHING JOKEY OR TRIVIAL ABOUT THE BARE BRUISED BEATEN BLEEDING FLESH IN JOHN WOODRUFF'S NIGHTMARISH CONCEPTION OF WEBSTER'S NIGHTMARISH PLAY MR WOODRUFF TOOK THE HORRORFILLED SCRIPT WHICH IS OFTEN DONE IN A RELATIVELY SAFE GRAND GUIGNOL STYLE LIKE A 17THCENTURY HORROR FILM WITH ARTAUDIAN THEATRE OF CRUELTY SERIOUSNESS THE TEXT CALLS FOR THE COMPLEX LUSTY HEROIC DUCHESS TO BE STRANGLED TO DEATH ONSTAGE BY THE EVIL SERVANTS OF HER EVIL BROTHERS BUT THIS PRODUCTION HAD HER STRIPPED FIRST BY MAFIOSI HENCHMEN WEARING LONG BLACK GLOVES THEN WRAPPED UP TIGHT IN RUBBER BONDS AND DRENCHED IN BLOOD HER BOUND NAKED CORPSE REMAINED ONSTAGE FOR THE REST OF THE PLAY AT THE SIGHT OF IT DUKE FERDINAND THE MORE SEXUALLY OBSESSED OF HER TWO BROTHERS WENT MAD HIMSELF STRIPPED OFF ALL OF HIS CLOTHES AND RAN SCREAMING ABOUT THE STAGE WHICH ENDED UP A MORGUE LITTLE OF THIS IS DEMANDED BY WEBSTER'S SCRIPT BUT NONE OF IT SEEMED AMISS THE PLAY CONJURES UP IN ITS LANGUAGE AND IN ITS ACTIONS ONE OF THE BLEAKEST AND DARKEST MORAL UNIVERSES IN THE HISTORY OF THEATER CRITICS FOUND A 1945 LONDON REVIVAL STARRING PEGGY ASHCROFT AND JOHN GIELGUD WHICH OPENED THE SAME DAY THE NAZI DEATH CAMPS WERE FIRST DESCRIBED IN THE TIMES TO BE MORE REALISTIC THAN FANTASTIC HUMAN HISTORY SINCE JUSTIFIED MOST OF THE SUPERADDED IMAGES OF BRUTALITY MR WOODRUFF IMPOSED UPON WEBSTER'S AWFUL LINES HE WAS GREATLY AIDED BY GEORGE TSYPIN'S EVIL SET A MOVABLE THREESTORY STEEL CAGE TO WHICH GIANT TUBES WERE ATTACHED LIKE SEVERED EROTIC BODY PARTS MOST OF THE IMAGES BUT NOT ALL DRIVEN BY A QUESTIONABLE URGE TO DENOUNCE CONTEMPORARY MISTREATMENT OF WOMEN MR WOODRUFF POPULATED THE BACKGROUND OF HIS PRODUCTION WITH SUPERFLUOUS ACTRESSES DRESSED AND UNDRESSED BEING TORTURED AND ABUSED IN ALL SORTS OF GRAPHIC AND GHASTLY WAYS FOR THIS THERE WAS NO NEED WHAT HAPPENED TO THE POOR DUCHESS WELL IF NOT MAGNIFICENTLY PLAYED BY RANDY DANSON WAS MORE THAN ENOUGH BOTH PRODUCTIONS BEYOND THEIR DIRECTORIAL INSIGHTS AND EXCESSES REMINDED ME OF HOW ESSENTIAL TO HISTORICAL REVIVALS GREAT ACTING IS AT ITS BEST I FIND AND THIS WAS CERTAINLY THE CASE HERE THE LEVEL OF ACTING IN REGIONAL REP RARELY ATTAINS THAT OF THE BEST OF NEW YORK OR LONDON BUT GEOFF HOYLE'S BRILLIANT MERCURIAL MOSCA IN THE BERKELEY VOLPONE AND SAM TSOUTSOUVAS'S FEROCIOUS DUKE FERDINAND IN ACT'S DUCHESS HELPED LIFT THEIR RESPECTIVE PLAYS BEYOND MODERN CONCEPT INTO COMPELLING AND TIMELESS HIGH THEATER MR LITTLEJOHN IS A NOVELIST CRITIC AND PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA BERKELEY 9303150033 930315 PUSHING BIG IRON' SEYMOUR CRAY'S WOES REFLECT TOUGH TIMES FOR SUPERCOMPUTERS THE INDUSTRY LEGEND NOW SHORT OF CASH AND BUYERS MUST HUSTLE FOR SURVIVAL AT 67 STILL UP FOR GIGAFLOPS BY MICHAEL ALLEN STAFF REPORTER OF THE WALL STREET JOURNAL COLORADO SPRINGS COLO HE IS THE PROVERBIAL LION IN WINTER PROWLING HIS MONASTICALLY SPARE OFFICE PORING OVER COMPLEX WIRING DIAGRAMS THAT SPRAWL ACROSS HIS DESK OR POKING HIS HEAD INTO HIS LATEST PROJECT IN SEARCH OF BAD CONNECTIONS AMID A TANGLE OF WIRING IN SOME WAYS 67YEAROLD SEYMOUR CRAY IS DOING WHAT HE HAS ALWAYS DONE WORKING 90HOUR WEEKS IN A SOLITARY QUEST FOR THE NEXT GREAT SUPERCOMPUTER IN YEARS PAST THAT WAS PRACTICALLY ALL HE HAD TO DO TO SELL HIS STATEOFTHEART MACHINES BUT NOW NEARLY FOUR YEARS BEHIND SCHEDULE WITH HIS LATEST PROJECT THE CRAY3 AND RUNNING OUT OF MONEY THE RECLUSIVE FATHER OF SUPERCOMPUTING HAS BEEN ACTING VERY UNCHARACTERISTICALLY HE IS GRANTING INTERVIEWS AND COURTING POTENTIAL INVESTORS AND CUSTOMERS ASKING THEM TO STICK WITH HIM ONE LAST TIME IF THEY DON'T HE MAY SOON SEE A DECADE OF WORK GO FOR NAUGHT EVEN IF HIS COMPANY CRAY COMPUTER CORP GETS NEW FUNDING HE FACES AN UPHILL FIGHT PERSUADING SKEPTICS THAT ADVANCING TECHNOLOGY HASN'T ALREADY MADE HIS NEW MACHINE OBSOLETE EVEN HIS OLD FANS DOUBT HIS PROSPECTS FOR SUCCESS NOW IT'S TIME FOR SEYMOUR TO RETIRE HE'S DONE A GOOD JOB SAYS DONALD M AUSTIN EXECUTIVE DIRECTOR OF THE ARMY HIGH PERFORMANCE COMPUTING RESEARCH CENTER IN MINNEAPOLIS TO HIS CRITICS MR CRAY HAS A BLUNT REPLY I KNOW WHEN I'M DONE BUT IT ISN'T YET MR CRAY'S PREDICAMENT ILLUSTRATES THE UPHEAVAL IN THE SUPERCOMPUTER BUSINESS ONCE A HIGHLY PROFITABLE NICHE DOMINATED BY A SUCCESSION OF CRAYFOUNDED COMPANIES SUPERCOMPUTERS HAVE BEEN HIT BY THE RECESSION AND A DEEP RIFT OVER FUTURE TECHNOLOGICAL DIRECTION REVENUE FOR HIGH PERFORMANCE COMPUTERS FELL 11 IN 1992 TO ABOUT 214 BILLION ACCORDING TO THE SMABY GROUP INC A MINNEAPOLIS CONSULTING FIRM THE SEGMENT INCLUDES PRODUCTS RANGING FROM GROUPS OF WORKSTATIONS OPERATING TOGETHER AND COSTING LESS THAN 1 MILLION TO BIG LIQUIDCOOLED MACHINES COSTING MORE THAN 30 MILLION SUPERCOMPUTERS PLAY VITAL ROLES IN A WIDE RANGE OF SCIENCE AND ENGINEERING WEATHER FORECASTING OIL EXPLORATION AUTOCRASH SIMULATIONS AND GOVERNMENT INTELLIGENCE GATHERING ARE ALL AIDED BY SUPERCOMPUTERS IN RECENT YEARS THE INDUSTRY HAS BEEN RENT BY ACCUSATIONS THAT THE FEDERAL GOVERNMENT IS DETERMINING THE FATE OF COMPANIES WITH RESEARCH GRANTS THAT IN EFFECT PICK WINNERS AND LOSERS IN THE MARKET ONE OF THE BIG LOSERS HAS BEEN SEYMOUR CRAY AND NOW AS HE STRIVES FOR ONE LAST HURRAH MR CRAY'S PLIGHT POSES AN EARLY TEST OF THE CLINTON ADMINISTRATION'S RESOLVE TO NURTURE NEW TECHNOLOGY AND PRESERVE THE NATION'S LEADERSHIP IN SCIENCE I'D TRADE OFF ALL THE GOVERNMENT STATEFUNDED SUPERCOMPUTERS THEY'VE GOT AND I'D TRADE OFF HALF THE NATIONAL LABS TO FUND SEYMOUR SAYS GORDON BELL A HIGHLY REGARDED COMPUTER ARCHITECT AND RECIPIENT OF THE NATIONAL MEDAL OF TECHNOLOGY HE'S A GENIUS FEW WOULD HAVE ARGUED THAT POINT A FEW YEARS AGO INTRODUCING MR CRAY AT A CONVENTION IN 1988 A LOS ALAMOS NATIONAL LABORATORY OFFICIAL JOKED THAT HE COULDN'T DECIDE WHETHER TO CALL HIM THE ALBERT EINSTEIN OF SUPERCOMPUTING THE THOMAS EDISON OF SUPERCOMPUTING OR THE EVEL KNIEVEL OF SUPERCOMPUTING HE WENT ON TO CALL HIM THE INDIVIDUAL WHO IS ALMOST SINGLEHANDEDLY RESPONSIBLE FOR THE LEAD THE UNITED STATES ENJOYS IN THE FIELD BUT NOW IT IS DIFFICULT TO FIND SUPPORTERS FOR MR CRAY'S LATEST EFFORTS EITHER IN THE SECRETIVE CONFINES OF NUCLEARWEAPONS LABS OR IN THE MARBLE HALLS OF WASHINGTON THE BIGGEST COMPLAINT MR CRAY HAS CHOSEN TO FOCUS HIS SKILLS ON PERFECTING A 20YEAROLD APPROACH OF USING A FEW POWERFUL PROCESSORS INSTEAD OF THE MOREFASHIONABLE MASSIVELY PARALLEL PROCESSING ARCHITECTURE WHICH DIVIDES PROBLEMS AMONG THOUSANDS OF INEXPENSIVE PROCESSORS I HAVE NOT ONCE HEARD SOMEBODY SAY THIS GUY IS GOING TO HAVE A MONEYWINNING TECHNOLOGY SAYS RICHARD A MCCORMACK EXECUTIVE EDITOR OF HIGH PERFORMANCE COMPUTING AND COMMUNICATIONS WEEK A WASHINGTONBASED TRADE PUBLICATION MR CRAY AND HIS SMALL STAFF ARE WORKING TO CHANGE MINDS LAST FALL MR CRAY MADE WHAT FOR HIM WAS A HIGHLY UNUSUAL TRIP TO WASHINGTON TO MEET WITH ENERGY DEPARTMENT OFFICIALS TO TRY TO STIR INTEREST IN THE CRAY3 HE IS PLANNING SIMILAR VISITS TO OTHER AGENCIES THAT USE SUPERCOMPUTERS HEAVILY LAST WEEK MR CRAY MET IN NEW YORK WITH SECURITIES ANALYSTS TO TRY TO ERASE DOUBTS ABOUT HIS NEW PRODUCT MR CRAY'S LEGENDARY STATUS GUARANTEES HIM AUDIENCES IN HIS TRAVELS HIS APPEAL IS DUE NEARLY AS MUCH TO HIS FAMOUS ECCENTRICITIES AS TO HIS TECHNOLOGICAL ACHIEVEMENTS TO RELAX ONE SUMMER HE HANDDUG A LONG TUNNEL AT HIS WISCONSIN VACATION HOME MR CRAY IS ALSO REVERED AMONG TECHIES FOR HIS DERRINGDO AND DISDAIN FOR BUREAUCRACY ATTITUDES HE CAPTURED NEATLY IN A MEMO HE WROTE AS A YOUNG ENGINEER TO A SENIOR EXECUTIVE AT CONTROL DATA CORP ONE OF THREE COMPANIES HE HELPED FOUND ASKED TO PRODUCE A LENGTHY DOCUMENT DETAILING HIS FIVEYEAR AND ONEYEAR DEVELOPMENT PLANS HE FIRED BACK TWO SENTENCES FIVE YEAR GOAL BUILD THE BIGGEST COMPUTER IN THE WORLD ONE YEAR GOAL ACHIEVE ONEFIFTH OF THE ABOVE ACHIEVE HE DID AT CONTROL DATA AND LATER AT CRAY RESEARCH INC WHERE HIS CRAY1 AND CRAY2 MACHINES SET THE STANDARD FOR SUPERCOMPUTING WHEN A NEW MACHINE WAS INTRODUCED GOVERNMENT AGENCIES AND RESEARCH LABORATORIES LINED UP AND IF HE FELL BEHIND SCHEDULE WHAT DID IT MATTER IT WAS A SEYMOUR CRAY MACHINE AND THAT WAS ALL USERS NEEDED TO KNOW BUT LIFE HAS BECOME MUCH MORE COMPLICATED FOR MR CRAY SINCE HE EMBARKED ON THE CRAY3 IT WAS ENVISIONED AS A GROUNDBREAKING COMPUTER THAT WOULD PUSH BEYOND THE LIMITS OF SILICON THE PRIMARY MATERIAL FOR INTEGRATED CIRCUITS MR CRAY HOPED TO BOOST PEAK PERFORMANCE BY A FACTOR OF 10 OVER THE CRAY2 BY USING GALLIUM ARSENIDE WHICH IN THEORY COULD GENERATE THREE TIMES THE SPEED OF SILICON COMBINED WITH 16 PROCESSORS INSTEAD OF FOUR AND IN A MUCH SMALLER PACKAGE BUT EARLY VERSIONS OF THE GALLIUMARSENIDE CHIPS PROVED UNSTABLE AND THE TINY PARTS WERE DIFFICULT TO BUILD EACH PROCESSOR CONTAINS 4096 CHIPS LITTLE BIGGER THAN A MATCH HEAD MEANING ROBOTS HAD TO BE DEVISED TO ASSEMBLE THE PARTS UNDER POWERFUL MICROSCOPES MR CRAY WHO DESIGNED THE CIRCUITS ON A PERSONAL COMPUTER HAD TO INVENT A LIQUID COOLING SYSTEM TO KEEP THE MACHINE FROM MELTING FROM THE INTENSE HEAT IT GENERATED CONCERNED ABOUT THE RISKS AND MOUNTING EXPENSES CRAY RESEARCH IN 1989 DECIDED TO PART COMPANY WITH THE FOUNDER'S PROJECT SPINNING IT OFF AS A NEW COMPANY CRAY COMPUTER ALONG WITH 100 MILLION IN DEVELOPMENT MONEY THEN IN DECEMBER 1991 CRAY COMPUTER'S ONLY CUSTOMER LAWRENCE LIVERMORE NATIONAL LABORATORY CANCELED ITS ORDER FOR A 30 MILLION 16PROCESSOR MACHINE CITING DEVELOPMENT DELAYS THE LAB INSTEAD ORDERED CRAY RESEARCH'S TOPLINE YMP C90 A 16PROCESSOR MACHINE MEANWHILE THROUGH THE END OF 1992 THE DECADEOLD CRAY3 PROJECT HAD CONSUMED NEARLY 300 MILLION LEAVING CRAY COMPUTER WITH JUST 276 MILLION IN CASH AT ITS CURRENT SPENDING RATE OF JUST UNDER 3 MILLION A MONTH THE 380EMPLOYEE COMPANY FIGURES IT CAN'T SURVIVE BEYOND JULY WITHOUT NEW MONEY OR CUSTOMERS MR CRAY MOVED IN 1988 FROM HIS HOMETOWN OF CHIPPEWA FALLS WIS TO COLORADO SPRINGS BECAUSE OF ITS ABUNDANCE OF LAIDOFF HIGHTECH WORKERS FROM THE DEFENSE INDUSTRY AT THE CENTER OF CRAY COMPUTER'S HOPES NOW IS A FOURFOOTTALL COMPUTER WHIRRING SOFTLY IN THE COMPANY'S TESTING ROOM HERE LIKE ALL OF MR CRAY'S CREATIONS THE ELEGANT CHARCOALGRAY DEVICE IS PART MACHINE PART ARTWORK WITH A TRANSPARENT TOP THAT REVEALS TANGLES OF BLUE AND WHITE WIRES SWAYING GENTLY IN A CURRENT OF COOLANT UNFORTUNATELY FOR MR CRAY INITIAL TESTS SHOW THE CRAY3 LAGGING THE YMP C90 BY MOST MEASURES IT HAS A PEAK SPEED PER PROCESSOR OF LESS THAN ONE BILLION BASIC CALCULATIONS PER SECOND OR ONE GIGAFLOP COMPARED WITH A FULL GIGAFLOP PER PROCESSOR FOR THE YMP C90 BECAUSE OF THE LIMITED MARKET FOR 30 MILLION COMPUTERS THE COMPANY HAS CHOSEN TO LAUNCH A 10 MILLION STRIPPEDDOWN UNIT FOR NOW WITH FOUR PROCESSORS FOR A COMBINED SPEED OF NEARLY FOUR GIGAFLOPS REACTION TO THE CRAY3 HAS BEEN MIXED BY NO MEANS DOES THIS BLOW AWAY THE EXISTING TECHNOLOGY OUT THERE IT JUST DEMONSTRATES THAT THE CRAY3 AT LEAST IN THESE MEASUREMENTS IS IN THE BALLPARK WITH THE FASTEST SUPERCOMPUTERS OUT THERE SAYS JEFFRY CANIN AN ANALYST WITH SALOMON BROTHERS INC EVEN MR CRAY HAS LOWERED HIS SIGHTS I DON'T SEE US BEING A REALLY SUCCESSFUL COMPANY WITH THE CRAY3 BECAUSE WE'RE TOO LATE TO REACH THAT GOAL HE SAYS DELAYS HAVE BEEN MUCH MORE COSTLY TO HIM THAN BEFORE BECAUSE BUYERS NOW HAVE MORE ALTERNATIVES FROM CRAY RESEARCH TO JAPAN'S NEC CORP AND FUJITSU LTD BUT HE STILL BELIEVES CRAY COMPUTER HAS A CHANCE TO TAKE A NICE BIG BITE OUT OF CRAY RESEARCH'S TRADITIONAL SUPERCOMPUTER BUSINESS WORTH MORE THAN 500 MILLION IN YEARLY REVENUE PARTLY BECAUSE THE DELIVERY TIME FOR C90S IS SO LONG MR CRAY HAS ALREADY LAUNCHED WORK ON A SUCCESSOR MACHINE TO THE CRAY3 THE CRAY4 THE CRAY4 WILL USE UP TO 64 PROCESSORS AND SAYS MR CRAY WILL HAVE TWICE THE SPEED AT HALF THE PRICE OF THE CRAY3 THAT WOULD MEAN AN 8PROCESSOR CRAY4 WITH A TOP SPEED OF 16 GIGAFLOPS WOULD COST 10 MILLION THE SAME AS A 30 MILLION 16PROCESSOR YMP C90 HE PLANS TO HAVE A PROTOTYPE IN 1994 BUT CRITICS ARGUE THAT MR CRAY IS PUSHING A TIRED TECHNOLOGY MOST OF THE SIGNIFICANT SPEED INCREASES HAVE ALREADY BEEN WRUNG FROM TRADITIONAL SUPERCOMPUTERS THEY SAY BECAUSE NO MATTER HOW TINY THE CIRCUITS BECOME THERE ISN'T ANY WAY TO MAKE THE ELECTRONIC IMPULSES TRAVEL FASTER THAN THE SPEED OF LIGHT HENCE INTEREST IS SHIFTING TO MASSIVELY PARALLEL COMPUTERS WHICH DIVIDE CALCULATIONS AMONG THOUSANDS OR EVEN HUNDREDS OF THOUSANDS OF MICROPROCESSORS MPP SYSTEMS ARE LIKE PIRANHAS DEVOURING THEIR PREY THROUGH THOUSANDS OF BITES WHILE A CONVENTIONAL VECTORSTYLE SUPERCOMPUTER PERFORMS CALCULATIONS IN ONE BIG BITE AND MPP SYSTEMS COST FAR LESS THAN TRADITIONAL SUPERCOMPUTERS BECAUSE THEY ARE MADE WITH INEXPENSIVE OFFTHESHELF PARTS A 10 MILLION INVESTMENT IN AN MPP SYSTEM FROM THINKING MACHINES CORP OR INTEL CORP'S SUPERCOMPUTER SYSTEMS DIVISION BUYS A MACHINE WITH A PROJECTED PEAK SPEED OF AS MUCH AS 32 GIGAFLOPS OR EIGHT TIMES THE SPEED OF A SIMILARPRICED CRAY3 MR CRAY IS LIKE SOMEONE HANDWRITING BIBLES WHEN EVERYBODY ELSE IS USING THE PRINTING PRESS SAYS HORST SIMON A RESEARCH SCIENTIST AT THE NASA AMES RESEARCH CENTER IN MOFFETT FIELD CALIF THAT ATTITUDE HAS PREDOMINATED AT SEVERAL FEDERAL ENTITIES IN RECENT YEARS ESPECIALLY AT THE PENTAGON'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY WHICH HAS POURED HUNDREDS OF MILLIONS OF DOLLARS INTO MPP RESEARCH THE EXPENDITURES HAVE DRAWN HOWLS OF PROTEST FROM MAKERS OF TRADITIONAL SUPERCOMPUTERS ESPECIALLY CRAY RESEARCH MR CRAY INSISTS THAT MPP SUPREMACY IS FAR FROM CERTAIN HE POINTS OUT THAT MPP MACHINES HAVE PROVEN NOTORIOUSLY DIFFICULT TO PROGRAM AND RECENT STUDIES AT LOS ALAMOS AND NASA AMES SHOW THAT MPP COMPUTERS RUN AT A TINY FRACTION OF THEIR PROJECTED PEAK SPEEDS I DON'T THINK THEY'LL EVER BE UNIVERSALLY SUCCESSFUL AT LEAST NOT IN MY LIFETIME SAYS MR CRAY EVEN SO MR CRAY RECENTLY BOWED TO MARKETING NECESSITIES BY AGREEING TO LINK HIS FIRST CRAY3 WITH A 2 MILLION MPPSTYLE CM5 FROM THINKING MACHINES THE COMPUTERS ARE GOING INTO THE NATIONAL CENTER FOR ATMOSPHERIC RESEARCH IN BOULDER COLO THE CRAY3 IS BEING PROVIDED AT NO CHARGE WHILE THE CM5 WILL LARGELY BE PAID FOR BY A PENTAGON GRANT BILL BUZBEE HEAD OF THE CENTER'S COMPUTER FACILITY SAYS HIS STUDIES INDICATE THAT FOR HIS PURPOSES CONVENTIONAL COMPUTERS DELIVER THE SAME SPEED FOR THE MONEY AS MPP SYSTEMS HE ADDS THAT HE HOPES CRAY COMPUTER GETS ENOUGH FUNDING TO SURVIVE AND LATE LAST YEAR HE ACCOMPANIED MR CRAY TO LOBBY THE ENERGY DEPARTMENT FOR HELP IT'S IN THE COUNTRY'S BEST INTEREST TO HAVE COMPETITION IN SUPERCOMPUTING HE SAYS BUT IT MAY BE TOO LATE FOR CRAY COMPUTER LONG GOVERNMENTBUYING CYCLES MAKE IT DIFFICULT FOR HELP TO COME SOON ENOUGH AND INVESTOR INTEREST IN MAKERS OF BIG IRON COMPUTERS SUCH AS INTERNATIONAL BUSINESS MACHINES CORP AND OTHERS HAS WANED RIVAL SUPERCOMPUTER DESIGNER STEVE S CHEN'S COMPANY SUPERCOMPUTING SYSTEMS INC WENT DEFUNCT LAST MONTH AFTER FAILING TO GET AN UNDERWRITER FOR AN INITIAL STOCK OFFERING BUT IF ANY OF THAT FAZES MR CRAY HE DOESN'T SHOW IT RELAXED IN A GRAY SWEATER AND WILDPATTERNED SHIRT HE REJECTS ANY SUGGESTION THAT HIS WORK OVER THE LAST DECADE HAS BEEN IN VAIN AND ARGUES THAT HE DOESN'T WANT OR NEED SPECIAL TREATMENT I THINK WE HAVE TO COMPETE IN THE WORLD HE SAYS IF WE DON'T COMPETE I DON'T THINK WE DESERVE TO BE SAVED 9303150032 930315 PITTSTON TO SPLIT COMMON STOCK INTO 2 CLASSES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN PITTSTON CO DIRECTORS PROPOSED TO CREATE SEPARATE CLASSES OF COMMON STOCK TIED TO ITS MINERALS AND ITS SERVICE BUSINESSES JOSEPH C FARRELL CHAIRMAN AND CHIEF EXECUTIVE SAID THE PLAN WILL INCREASE FLEXIBILITY IN RAISING CAPITAL AND MAKING ACQUISITIONS HE SAID THE CHANGE ALSO WOULD ENABLE PITTSTON TO PROVIDE MORE DIRECT INCENTIVES TO OPERATING MANAGEMENT OF EACH GROUP OVER TIME THE SPLIT COULD RESULT IN A HIGHER MARKET VALUATION FOR THE COMPANY BY GIVING MORE EXPOSURE TO THE FASTER GROWING SERVICE BUSINESSES WHICH INCLUDE BURLINGTON AIR EXPRESS INC SECURITY AND ARMORED CAR SERVICE BRINK'S INC AND BRINK'S HOME SECURITY INC A PITTSTON SPOKESMAN SAID THE PLAN WAS SIMILAR TO THE MOVE BY USX CORP THAT IN 1991 DIVIDED ITS COMMON STOCK INTO SEPARATE STEEL AND ENERGY ISSUES THE MOVE WAS PROMPTED BY SHAREHOLDER CRITICISM INCLUDING THAT OF CARL ICAHN CONTENDING THAT THE CYCLICAL STEEL BUSINESS WAS WEIGHING DOWN THE VALUE INHERENT IN THE OIL AND ENERGY BUSINESS THE PROPOSAL SUBJECT TO SHAREHOLDER APPROVAL AT A MEETING PLANNED JUNE 30 WOULD DISTRIBUTE SHARES IN A NEW PITTSTON MINERALS CO WHILE EXISTING SHARES WOULD BE REDESIGNATED AS PITTSTON SERVICES COMPANIES COMMON STOCK SHAREHOLDERS WOULD RECEIVE ONEFIFTH OF A SHARE OF MINERALS STOCK FOR EACH PITTSTON COMMON SHARE BOTH ISSUES WOULD BE LISTED ON THE NEW YORK STOCK EXCHANGE THE COMPANY EXPECTS THAT THE NEW SERVICES SHARES WOULD HAVE A 20 CENT ANNUAL DIVIDEND WHILE MINERALS SHARES WOULD RECEIVE 65 CENTS ANNUALLY THUS THE HOLDER OF AN EXISTING PITTSTON COMMON SHARE INITIALLY WOULD RECEIVE 33 CENTS ANNUALLY UNDER THE NEW PLAN PITTSTON CURRENTLY PAYS 75 CENTS QUARTERLY EQUIVALENT TO 30 CENTS ANNUALLY IN 1992 THE COAL BUSINESS HAD PRETAX OPERATING PROFIT OF 37 MILLION ON REVENUE OF 658 MILLION THE OTHERS WERE AIR FREIGHT 15 MILLION PROFIT AND 900 MILLION REVENUE SECURITY 30 MILLION IN PROFIT AND 444 MILLION REVENUE AND HOME SECURITY 16 MILLION IN PROFIT AND 71 MILLION REVENUE IN 1992 PITTSTON HAD NET INCOME OF 49 MILLION OR 132 A SHARE ON 2 BILLION IN REVENUE RECENT FEDERAL LEGISLATION GIVES PITTSTON AN ADDED INCENTIVE TO DIVIDE THE COMPANIES THE LAW REQUIRES COAL PRODUCERS TO MAKE CONTRIBUTIONS FOR MINERS' RETIREE HEALTH PLANS ONE ANALYST ESTIMATED THE LAW WOULD COST PITTSTON NEARLY 10 MILLION A YEAR OVER SEVERAL YEARS THE PLAN WAS ANNOUNCED AFTER THE MARKET CLOSED PITTSTON SHARES CLOSED AT 1550 ON THE NEW YORK STOCK EXCHANGE THIS IS ONE OF THOSE COMPANIES THAT HAVE DISTINCT BUSINESSES AND THE MARKET HAS BEEN VALUING THEM LOWER THAN THEY SHOULD SAID RAFAEL A VILLAGRAN ANALYST AT LEHMAN BROS THE COMPANY HAS BEEN TALKING ABOUT SEPARATING ITS BUSINESSES FOR YEARS BUT THIS STOCKONLY SEPARATION FLUSHES OUT THE VALUES OF THEIR BUSINESSES AND MAKES IT EASIER FOR INVESTORS TO FOCUS THEIR INVESTMENT INTO THOSE BUSINESSES THEY WANT TO PARTICIPATE IN 9303150031 930315 AMERICAN EXPRESS TO USE SALE PROCEEDS TO BOOST BALANCE SHEET AND CORE LINES BY PETER PAE AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL THE 375 BILLION THAT AMERICAN EXPRESS CO WILL RECEIVE IN COMING MONTHS FROM THE SALES OF ITS SHEARSON BROKERAGE UNIT AND OTHER ASSETS WILL BOLSTER THE COMPANY'S BALANCE SHEET AND ALLOW IT TO MOVE FASTER IN REVAMPING ITS CORE CHARGECARD BUSINESS OUR MAJOR OBJECTIVE IS FOCUSING ON THE CORE BUSINESSES UNDER THE AMERICAN EXPRESS BRAND NAME SAID HARVEY GOLUB AMERICAN EXPRESS'S RECENTLY NAMED CHIEF EXECUTIVE OFFICER REFERRING TO THE FLAGSHIP TRAVEL RELATED SERVICES UNIT IDS FINANCIAL SERVICES AND THE AMERICAN EXPRESS BANK MR GOLUB SAID THE SALE OF SHEARSON ALLOWS HIM TO DEVOTE MORE TIME TO TRS AND TO ACCELERATE THE INTEGRATION OF THE THREE SEPARATE DIVISIONS TO DATE AMERICAN EXPRESS HASN'T BEEN ABLE TO CROSSSELL PRODUCTS AS MUCH AS IT WOULD LIKE TO CUSTOMERS OF THE THREE BUSINESSES PROCEEDS FROM THE SALES WILL INCLUDE 115 BILLION FROM THE SHEARSON SALE TO PRIMERICA INC FORMALLY ANNOUNCED FRIDAY AND EXPECTED IN JULY AND 14 BILLION FROM THE SALE OF AMERICAN EXPRESS'S BOSTON CO SUBSIDIARY TO MELLON BANK CORP EXPECTED TO CLOSE SOON THOSE SALES WILL HELP THE BALANCE SHEET OF THE REMAINING LEHMAN BROTHERS UNIT AND REDUCE THE NEED FOR FINANCIAL HELP FROM THE PARENT INSTEAD OF THE 1 BILLION THAT WOULD HAVE BEEN NEEDED TO BRING THE COMBINED SHEARSON LEHMAN BROTHERS UNIT TO A STRONGER CREDIT RATING AMERICAN EXPRESS SAYS IT WILL NOW ONLY NEED TO ADD 400 MILLION TO GET LEHMAN BROTHERS TO THAT STANDING IN ADDITION AMERICAN EXPRESS WILL RAISE ROUGHLY 12 BILLION FROM THE SALE OF 32 MILLION SHARES OF ITS FIRST DATA CORP SUBSIDIARY THE CASH WILL GO TO THE PARENT'S BALANCE SHEET TO PAY DOWN DEBT OR TO INVEST IN ITS REMAINING BUSINESSES ANALYSTS SAY WHILE ITS REMAINING BUSINESSES ARE WELL CAPITALIZED AND NOT STARVED FOR CASH THE FUNDS WILL PROVIDE THE COMPANY A FINANCIAL CUSHION AND LATITUDE IT DIDN'T HAVE BEFORE FOR EXAMPLE TRAVEL RELATED SERVICES THE CHARGECARD UNIT IS IN A COMPETITIVE BATTLE SAID JAMES HANBURY ANALYST WITH WERTHEIM & CO THEY HAVE TO PUT MORE MONEY INTO MARKETING AND THEY HAVE TO CUT THE PRICE TO MERCHANTS NOW THEY HAVE MORE CUSHION TO DO IT IN THE PAST YEAR AMERICAN EXPRESS HAS INCREASED ITS SPENDING ON MARKETING AND HAS SELECTIVELY TRIMMED THE FEES IT CHARGES MERCHANTS FOR ACCEPTING ITS CARD NOW THE COMPANY SAYS IT WILL HAVE GREATER FLEXIBILITY TO EXPAND THE EFFORT ANALYSTS WARNED HOWEVER THAT ANY ADDITIONAL MONEY ISN'T GOING TO HELP THE CARD BUSINESS IF THE BUSINESS ITSELF ISN'T RESTRUCTURED TO BETTER RESPOND TO COMPETITIVE PRESSURES AMERICAN EXPRESS LOST MORE THAN A MILLION CARD ACCOUNTS IN THE PAST YEAR AND HAS WATCHED PROFITS SHRINK IN THAT REGARD AMERICAN EXPRESS IS AIMING FOR A 1 BILLION ANNUAL EXPENSE REDUCTION AT TRS AS PART OF A REENGINEERING EFFORT ANNOUNCED LAST FALL WHILE THE RESULTS OF THE EXPENSE CUTS AND RELATED STREAMLINING AREN'T KNOWN YET THE COMPANY SAYS THE PROGRAM IS PROGRESSING BETTER THAN EXPECTED TRS GOT TOO FAT OVER THE YEARS AND IT NEEDS TO TRIM DOWN SAID NED DAVIS OF GERARD KLAUER MATTISON & CO IN ITS SALE OF THE SHEARSON BROKERAGE BUSINESS AMERICAN EXPRESS WILL RECEIVE 70 MILLION MORE THAN IT PAID FOR IT IN 1981 WHEN FORMER CHAIRMAN JAMES ROBINSON III NEGOTIATED WITH SANDY WEILL THEN SHEARSON'S CHAIRMAN AND NOW CHAIRMAN OF PRIMERICA MR ROBINSON HAD ACQUIRED SHEARSON AS PART OF HIS GRAND PLAN TO CREATE A FINANCIAL SUPERMARKET WHICH WOULD PROVIDE A HOST OF FINANCIAL SERVICES TO CONSUMERS INCLUDING INVESTMENT SAVINGS AND CHARGECARD PRODUCTS BEFORE RESIGNING LAST MONTH HE BEGAN TO DISMANTLE THE EMPIRE HE HAD BUILT IN ORDER TO REFOCUS ATTENTION ON AMERICAN EXPRESS'S CORE CARD BUSINESS IT'S DIFFICULT TO QUANTIFY THE TOTAL LOSS TO AMERICAN EXPRESS FROM ITS FORAY INTO SECURITIES BUSINESSES THOUGH THE COMPANY SAYS ITS INVESTMENTS TOTALED 2 BILLION THE 115 BILLION AMERICAN EXPRESS EXPECTS TO RECEIVE FOR SHEARSON INCLUDES 850 MILLION IN CASH 150 MILLION IN CONVERTIBLE SECURITIES AND AS MUCH AS 50 MILLION ANNUALLY FOR THREE YEARS DEPENDING ON THE PERFORMANCE OF THE NEW UNIT IN ADDITION IT COULD PICK UP 10 OF ANY PROFITS EXCEEDING 250 MILLION OVER A FIVEYEAR PERIOD ON THE DOWNSIDE THE COMPANY IS RETAINING SOME LEGAL OBLIGATIONS FOR CERTAIN ASSETS SOLD TO PRIMERICA ALSO AMERICAN EXPRESS WILL TAKE A 630 MILLION AFTERTAX CHARGE IN THE FIRST QUARTER FOR WRITING DOWN GOODWILL SEVERANCE COSTS AND OTHER COSTS ASSOCIATED WITH THE SALE THE REMAINING SHEARSON UNIT LEHMAN BROTHERS ALSO WILL INCUR A 100 MILLION CHARGE TO RESERVE FOR FUTURE LEGAL LIABILITIES AMERICAN EXPRESS HOPES TO OFFSET THE LOSS AT THE END OF THE FIRST QUARTER WITH THE PROCEEDS FROM THE SALE OF BOSTON CO AND ADDITIONAL SHARES OF FIRST DATA CORP AFTER THE WRITEDOWNS THE BOOK VALUE OF THE LEHMAN BROTHERS UNIT WILL BE 13 BILLION WHICH COMPANY OFFICIALS SAY IS A GOOD PROXY FOR LEHMAN'S NET WORTH LEHMAN WILL HAVE BETWEEN 5000 AND 7500 EMPLOYEES ROUGHLY 80 BILLION IN ASSETS AND REVENUE OF AS MUCH AS 35 BILLION ULTIMATELY LEHMAN WILL LIKELY BE SOLD THROUGH AN INITIAL PUBLIC OFFERING OR OTHER MEANS BUT MR GOLUB SAID HE WOULD LIKE TO IMPROVE THE EARNINGS FIRST FEW HOWEVER BELIEVE HE WOULD WALK AWAY FROM WOULDBE SUITORS 9303150030 930315 BUSINESS BRIEF DEAN WITTER DISCOVER & CO MASTERCARD INTERNATIONAL SUES OVER MEMBERSHIP ISSUE MASTERCARD INTERNATIONAL INC FILED A LAWSUIT SEEKING A COURT ORDER SAYING IT DID NOTHING ILLEGAL WHEN IT PREVENTED TWO SUBSIDIARIES OF DEAN WITTER DISCOVER & CO FROM BECOMING MEMBERS OF ITS CREDITCARD CONSORTIUM THE LAWSUIT FILED IN FEDERAL COURT IN NEW YORK IS THE LATEST SALVO IN THE CONTINUING BATTLE BETWEEN DEAN WITTER DISCOVER WHICH ISSUES THE DISCOVER CARD AND ITS CHIEF COMPETITORS MASTERCARD AND VISA DEAN WITTER DISCOVER WHICH RECENTLY WENT PUBLIC IN A STOCK OFFERING BY PARENT SEARS ROEBUCK & CO WANTS TWO FINANCIAL INSTITUTIONS IT OWNS GREENWOOD TRUST CO AND MOUNTAINWEST FINANCIAL TO BE GIVEN THE RIGHT TO ISSUE VISA OR MASTERCARD CREDIT CARDS A FEDERAL JUDGE IN UTAH IS CURRENTLY CONSIDERING WHETHER TO UPHOLD A JURY VERDICT THAT ORDERED VISA USA INC TO ALLOW MOUTAINWEST TO ISSUE A VISA CARD A DEAN WITTER DISCOVER SPOKESWOMAN SAID THE COMPANY IS CONFIDENT IT WOULD PREVAIL IN THE MASTERCARD LAWSUIT 9303150029 930315 BUSINESS BRIEF US SHOE'S 4THQUARTER NET FELL 93 WOMEN'S APPAREL SHOE OPERATIONS CITED CINCINNATI US SHOE CORP HURT BY ITS STRUGGLING WOMEN'S APPAREL RETAILING AND SHOE OPERATIONS SAID FISCAL FOURTHQUARTER PROFITS FELL 93 TO 832000 OR TWO CENTS A SHARE EARNINGS FROM OPERATIONS FELL EVEN FURTHER AS THE QUARTER ENDED JAN 30 INCLUDED A 96 MILLION OR 21 CENTS A SHARE ACCOUNTING CREDIT IN THE YEAREARLIER PERIOD THE COMPANY EARNED 126 MILLION OR 28 CENTS A SHARE SALES IN THE QUARTER FELL 09 TO 688 MILLION FROM 694 MILLION US SHOE HAS HAD TO BATTLE SEVERAL PROBLEMS OVER THE PAST YEAR INCLUDING MERCHANDISING MISSTEPS AT ITS CASUAL CORNER CHAIN BUT OVER THE PAST TWO WEEKS THE COMPANY HAS HIRED NEW EXECUTIVES IN BOTH WOMEN'S APPAREL AND FOOTWEAR IN A BID TO TURN AROUND THE COMPANY'S FORTUNES STILL THE CONTINUING POOR EARNINGS INDICATE THE COMPANY HAS SEVERAL PROBLEMS TO ADDRESS EARLIER THIS YEAR THE COMPANY HAD INDICATED THAT THE POOR PERFORMANCE IN ITS FOOTWEAR DIVISION WOULD SUBSTANTIALLY WIPE OUT OPERATING INCOME OF ITS OTHER DIVISIONS IN THE FOURTH QUARTER THE COMPANY HAS HAD TO HEAVILY DISCOUNT SOME OF ITS SHOE LINES FOR THE FISCAL YEAR 1993 US SHOE REPORTED NET INCOME OF 44 MILLION OR 10 CENTS A SHARE COMPARED WITH 312 MILLION OR 69 CENTS A SHARE IN FISCAL 1992 SALES DROPPED TO 265 BILLION FROM 273 BILLION THE FIRMS REPORTED THAT ITS OPERATING EARNINGS IN THE WOMEN'S APPAREL GROUP SLID TO 121 MILLION IN FISCAL 1993 FROM 526 MILLION THE OPERATING EARNINGS FOR FISCAL 1993 INCLUDED A 11 MILLION GAIN FOR A LASTIN FIRSTOUT ACCOUNTING ADJUSTMENT WHILE FISCAL 1992'S OPERATING EARNINGS INCLUDED AN ACCOUNTING CHARGE OF 34 MILLION THE COMPANY'S LENSCRAFTERS UNIT PRODUCED OPERATING EARNINGS OF 404 MILLION COMPARED WITH 332 MILLION AND ITS FOOTWEAR GROUP HAD AN OPERATING LOSS OF 55 MILLION DOWN FROM OPERATING EARNINGS OF 181 MILLION THE FOOTWEAR GROUP'S FISCAL 1993 OPERATING LOSS INCLUDED AN ACCOUNTING CREDIT OF 25 MILLION WHILE THE UNIT'S FISCAL 1992 OPERATING EARNINGS INCLUDED A 77 MILLION CHARGE 9303150028 930315 BUSINESS BRIEF RITE AID CORP FISCAL FOURTHPERIOD PROFIT TO BE LOWER THAN EXPECTED RITE AID CORP CAMP HILL PA SAID FISCAL FOURTHQUARTER EARNINGS WILL BE LOWER THAN EXPECTED AS A RESULT OF WEAK SALES AT ITS RETAIL DRUGSTORES AND ITS ENCORE BOOKS BOOKSTORES CHAIN RITE AID SAID EARNINGS FOR THE QUARTER ENDED FEB 27 ARE EXPECTED TO BE ONLY SLIGHTLY AHEAD OF YEAREARLIER NET INCOME OF 447 MILLION OR 51 CENTS A SHARE RITE AID ATTRIBUTED THE EXPECTED LOWER EARNINGS MAINLY TO DECEMBER SAMESTORE RETAIL DRUG SALES WHICH ROSE ONLY 4 REFLECTING THE IMPACT OF BAD WEATHER ON SALES DURING THE IMPORTANT HOLIDAY SELLING PERIOD COUPLED WITH A WEAK COLD AND FLU SEASON A COMPANY SPOKESMAN SAID SALES FOR THE FISCAL YEAR JUST ENDED ROSE 9 TO 41 BILLION AND SAMESTORE SALES FOR DRUGSTORES INCREASED 51 RITE AID DIDN'T PROVIDE QUARTERLY SALES FIGURES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY RITE AID SHARES CLOSED AT 20 UNCHANGED 9303150027 930315 IF SOMEONE BREEDS A PURPLE COW THEY'LL HAVE A CRAZY SURF 'N' TURF BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL THESE ARE LOBSTERS THAT BB KING WOULD LOVE THEY ARE BLUE BRIGHT BLUE THE COLOR OF BOAT TARPAULINS SAM CHAPMAN AN AQUACULTURE SPECIALIST AT THE UNIVERSITY OF MAINE'S DARLING CENTER IN WALPOLE BREEDS THEM AND HE HAS PLANS TO SELL THEM AS PETS BUT HIS PLANS MAY BE DOOMED LAST WEEK THE MAINE LEGISLATURE'S MARINERESOURCES COMMITTEE KILLED A BILL THAT WOULD HAVE PERMITTED COLLECTORS TO KEEP SMALL BLUE LOBSTERS BEFORE MR CHAPMAN STARTED BREEDING THE BLUE CRUSTACEANS FOR RESEARCH THEY WERE ALMOST AS RARE AS BLUE MOONS ONE FOR EVERY THREE MILLION NORMAL MOTTLEDGREEN LOBSTERS SCIENTISTS FIND IT VERY HARD TO TRACK LOBSTERS IN THE WILD BECAUSE THEY SHED THEIR SHELLS ANNUALLY MAKING TAGGING OR BANDING USELESS MR CHAPMAN REASONED THAT IF HE COULD BREED BLUE LOBSTERS HE COULD RELEASE THEM TRACK THEM AND FIND OUT WHETHER THEY SURVIVED BASED ON REPORTS OF LOBSTERMEN BY APPEALING TO LOBSTERMEN HE OBTAINED A BREEDING PAIR AND BY 1988 HE HAD ENOUGH TO RELEASE 5600 SMALL BLUE LOBSTERS LAST SUMMER SOME WERE BIG ENOUGH TO SHOW UP IN LOBSTER TRAPS CONFIRMING THAT MAINE'S EFFORTS TO BREED AND STOCK LOBSTERS WERE FRUITFUL NOW HOWEVER THE CENTER WANTS TO USE ITS BLUELOBSTER SPACE FOR OTHER RESEARCH MR CHAPMAN SAYS I HATE TO SPEND 10 YEARS ON SOMETHING AND THEN LOSE IT SO HE OFFERED TO TAKE THEM HOME BUILDING TANKS FOR THOUSANDS OF THEM WOULD COST 4000 TO 8000 HE ESTIMATES BUT HE REASONS IF I HAVE THE ONLY BLUELOBSTER BROOD STOCK IN THE WORLD I SHOULD GET 200 APIECE FOR THEM FROM MARINELIFE COLLECTORS ONE PROBLEM THE STATE OF MAINE HAS STRICT RULES THAT ONLY RESEARCHERS CAN POSSESS LOBSTERS THAT ARE SMALLER THAN THE STATE'S LEGAL EATING SIZE A CONSERVATION MEASURE MR CHAPMAN ASKED THE STATE TO EXEMPT BLUE LOBSTERS I SAID HERE I AM WORKING FOR A UNIVERSITY I'M LAYING SIDEWAYS IN THE PUBLIC TROUGH HERE'S AN OPPORTUNITY FOR ME TO START A BUSINESS PAYING TAXES STATE BUREAUCRATS ENVISIONED BIG PROBLEMS HOWEVER WILLIAM BRENNAN MARINERESOURCES COMMISSIONER SAYS IF WE HAVE SEVERAL HUNDRED PET SHOPS IN MAINE HANDLING UNDERSIZED BLUE LOBSTERS IT WILL MAKE OUR CONSERVATION LAW UNENFORCEABLE LOBSTERMEN ALSO FEARED THAT IF BLUE LOBSTERS BECAME PETS WITH NAMES AND IDENTITIES SOME PEOPLE WOULD STOP REGARDING LOBSTERS AS FOOD 9303150026 930315 BUSINESS BRIEF PANHANDLE EASTERN CORP NEW SUBSIDIARY IS FORMED TO MARKET VARIOUS SERVICES PANHANDLE EASTERN CORP HOUSTON SAID IT CREATED A NEW BUSINESS UNIT AS A MARKETING ARM FOR NATURALGAS SERVICES THE NEW SUBSIDIARY 1 SOURCE CORP WILL FOCUS ON PACKAGING NATURALGAS SERVICES FOR ELECTRIC POWER PRODUCERS NATURALGAS DISTRIBUTION COMPANIES AND ENDUSERS FRED J FOWLER CORPORATE VICE PRESIDENT MARKETING WAS NAMED PRESIDENT OF 1 SOURCE OPPORTUNITIES FOR SELLING VARIOUS NATURALGAS SERVICES WERE CREATED BY THE IMPLEMENTATION OF FEDERAL ENERGY REGULATORY COMMISSION'S ORDER 636 SAID PANHANDLE EASTERN FERC'S ORDER 636 DIRECTED THE UNBUNDLING OF NATURALGAS SERVICES INTO TRANSPORTATION STORAGE AND DISTRIBUTION TO ALLOW THE CONSUMER TO SELECT A COMPANY TO PROVIDE EACH SERVICE 9303150025 930315 PEPPERAND SALT WILL FIND ME GETTING CORRECTED IN MANY A STIRRING BALLAD WE HONOR HIM FOR HIS SALAD 9303150024 930315 INTERNATIONAL GERMAN LEADERS AGREE ON FINANCING OF UNITY BUT DELAY INCOME TAX BOOST BY DANIEL BENJAMIN STAFF REPORTER OF THE WALL STREET JOURNAL BONN GERMANY'S MUCH BALLYHOOED SOLIDARITY PACT TO FINANCE GERMAN UNITY SEEMS DESIGNED TO HELP THE AILING MAINSTREAM POLITICAL PARTIES BUT BECAUSE IT DOES LITTLE TO REIN IN SPENDING THE ACCORD IS UNLIKELY TO IMPRESS THE BUNDESBANK OR THE GERMANY BUSINESS COMMUNITY THE AGREEMENT WAS UNVEILED OVER THE WEEKEND AFTER A THREEDAY NEGOTIATING SESSION THAT CAPPED MONTHS OF POLITICAL JOUSTING BETWEEN CHANCELLOR HELMUT KOHL'S GOVERNMENT THE OPPOSITION SOCIAL DEMOCRATIC PARTY AND THE 16 STATE GOVERNMENTS IT GUARANTEES THE EASTERN STATES WILL RECEIVE 336 BILLION A YEAR FROM 1995 ONWARD IN TRANSFERS FROM THE FEDERAL GOVERNMENT AND THE WESTERN STATES THAT FIGURE IS IN ADDITION TO THE 24 BILLION A YEAR THAT BONN HAS COMMITTED TO PAY BEGINNING THAT YEAR TO RETIRE OLD EAST GERMAN DEBTS AND PAY OFF THE COSTS OF PRIVATIZING AND LIQUIDATING EASTERN GERMAN COMPANIES THE PACT HAS THE POLITICAL VIRTUE OF ALLOWING BOTH CHANCELLOR KOHL'S CENTERRIGHT COALITION AND THE SOCIAL DEMOCRATS TO DECLARE THEY HAD ATTAINED THEIR PRIMARY AIMS THE GOVERNMENT SUCCEEDED IN POSTPONING AN INCOME TAX INCREASE UNTIL 1995 WHEN A 75 SOLIDARITY SURCHARGE WILL BE REINTRODUCED THE TAX IS ESSENTIALLY IDENTICAL TO ONE THAT WAS INTRODUCED IN 1991 FOR ONLY A YEAR MR KOHL IS THUS LIKELY TO LIMIT VOTER WRATH BEFORE NEXT YEAR'S GENERAL ELECTION HE OPPOSED PUTTING A LEVY INTO EFFECT EARLIER WHICH THE SPD HAD ARGUED VIGOROUSLY FOR ON THE GROUNDS THAT IT WOULD ONLY WORSEN GERMANY'S RECESSION IN RETURN FOR POSTPONING THE TAX INCREASE NEGOTIATORS AGREED TO THE SPD'S INSISTENCE ON NO CUTS IN SOCIAL BENEFITS AND UNEMPLOYMENT PAYMENTS INSTEAD THEY RESOLVED TO LIMIT THE RISE IN SOCIAL SPENDING TO 3 THIS YEAR AND NEXT IN PLACE OF THE PROPOSED SPENDING CUTS THE GOVERNMENT VOWED TO FIND SAVINGS BY ATTACKING WELFARE AND UNEMPLOYMENT FRAUD BY PROTECTING BENEFITS SPD POLITICIANS HAVE HOPED TO SHORE UP SUPPORT AMONG THEIR CORE WORKINGCLASS CONSTITUENTS THE PARTY WAS BADLY JOLTED BY A POOR SHOWING IN LOCAL ELECTIONS IN THE STATE OF HESSE ON MARCH 7 THE SPD SETBACK DROVE HOME THE MESSAGE THAT THE LEADING PARTIES MUST EITHER COOPERATE TO PRODUCE FAST RESULTS OR FACE GROWING DISAFFECTION AND GAINS BY THE RADICALS WITH THE SPDRULED STATES HOLDING A MAJORITY IN THE BUNDESRAT THE UPPER HOUSE OF THE LEGISLATURE NO MAJOR LEGISLATION CAN BE PASSED WITHOUT COOPERATION BETWEEN GOVERNMENT AND OPPOSITION REESTABLISHING THE MAIN PARTIES' CREDIBILITY AS PROBLEMSOLVERS SAYS WOLFGANG ROTH A BUNDESTAG MEMBER AND FINANCE SPOKESMAN FOR THE SPD WAS THE CHIEF MOTIVE BEHIND THE WEEKEND COMPROMISE THE NEGOTIATORS ALSO SETTLED A LONGSTANDING ISSUE OF ALLOTING INCOME FROM GERMANY'S VALUEADDED TAX A PRIMARY SOURCE OF STATE FUNDING FROM 1995 ON THE STATES WILL RECEIVE 44 OF THE PROCEEDS UP FROM 37 WHILE THE FEDERAL GOVERNMENT WILL GET THE REST THE NEW ALLOCATION IS EXPECTED TO PRESAGE THE TRANSFER OF MORE GOVERNMENT RESPONSIBILITY TO THE STATE LEVEL AS WELL AS GREATER STATE INVOLVEMENT IN PAYING FOR THE PROBLEMS OF EASTERN GERMANY BUT EVEN IF VOTERS APPROVE OF THE PACT THE BUNDESBANK'S REACTION MAY BE MORE GRUDGING OFFICIALS AT THE CENTRAL BANK HAVE LONG DEMANDED THAT BONN RESTORE BUSINESS CONFIDENCE BY CLEARING UP THE QUESTION OF TAX INCREASES AND REDUCING THE COUNTRY'S SPENDING DEFICIT ALTHOUGH THE SOLIDARITY PACT DOES CLARIFY THE TAX ISSUE AND COMMITS BONN TO CUTTING 55 BILLION IN SUBSIDIES THE ABSENCE OF DEEP BUDGET CUTS IS UNLIKELY BY ITSELF TO PRECIPITATE THE RAPID LOWERING OF INTEREST RATES THAT GERMAN INDUSTRY IS EAGER TO HAVE IF THEY WANT TO HELP THE GOVERNMENT OUT THEY THE BUNDESBANK WILL CUT RATES A BIT ADMITS ONE SENIOR BONN OFFICIAL IF THEY ACT CORRECTLY THEY WON'T DO ANYTHING BECAUSE THE DEAL HAS NO IMPACT ON INFLATION INDEED THE AGREEMENT'S LIST OF SPENDING PROGRAMS FOR THE EAST MAY DISMAY THOSE LOOKING FOR SAVINGS AMONG THE OUTLAYS ENVISIONED ARE AN IMMEDIATE 12 BILLION TO CREATE MORE JOB RETRAINING IN EASTERN STATES WHERE MONEY HAS ALREADY RUN OUT FOR THIS YEAR'S PROGRAM FURTHER SPENDING CERTAIN TO RUN INTO THE BILLIONS WILL BE EARMARKED FOR BUILDING AND RENOVATING HOUSING ENVIRONMENTAL CLEANUPS AND SAVING INDUSTRIAL CORES COMPANIES THAT ARE UNCOMPETITIVE BUT WHOSE CLOSURE WOULD DESTROY LOCAL ECONOMIES 9303150023 930315 INTERNATIONAL BRIEF ISTITUTO PER LA RICOSTRUZIONE ITALY'S STATE CONGLOMERATE TO SELL BANK STAKE TO STET ITALY'S STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE ANNOUNCED IT WOULD SELL ITS MAJORITY STAKE IN BANCA COMMERCIALE ITALIANA SPA TO ITS TELECOMMUNICATIONS SUBSIDIARY STET SPA FOR THREE YEARS MAINTAINING VOTING RIGHTS FOR ITSELF IRI WHICH HAS BEEN UNPROFITABLE SAID THE TEMPORARY SALE AT A PRICE OF 340 BILLION LIRE 2117 MILLION TO PROFITABLE STET WOULD HELP TO REDUCE THE HOLDING COMPANY'S DEBT AND ALSO ALLOW STET TO CLAIM TAX CREDITS FROM THE GOVERNMENT FOR WHICH IRI WOULD HAVE TO WAIT FIVE OR SIX YEARS REPORTS OF IRI'S FINANCING SCHEME WERE MET WITH HARSH CRITICISM OVER THE WEEKEND SEN CARLO SCOGNAMIGLIO WAS QUOTED AS SAYING THAT THE PLAN WAS EITHER A RIPOFF WITH RESPECT TO STET'S MINORITY SHAREHOLDERS OR IT MEANS THAT IRI IS AT THE VERGE OF FINANCIAL COLLAPSE 9303150022 930315 BUSINESS BRIEFS WASHINGTON FEDERAL SAVINGS COMPLETED THE ACQUISITION OF FIRST FEDERAL SAVINGS BANK OF SALT LAKE CITY FOR 364 MILLION GERAGHTY & MILLER INC COMPLETED THE ACQUISITION OF ACUREX ENVIRONMENTAL CORP A SUBSIDIARY OF XERUCA HOLDINGS INC FOR 77 MILLION SYMETRICS INDUSTRIES INC WAS AWARDED A 68 MILLION CONTRACT BY THE US AIR FORCE TO PRODUCE DIGITAL MODEMS FOR MILITARY AIRCRAFT VIROGROUP INC WILL POST BREAKEVEN RESULTS FOR ITS SECOND QUARTER ENDED FEB 28 SHAW INDUSTRIES INC AGREED TO BUY CLOSELY HELD KOSSET CARPETS LTD TERMS WEREN'T DISCLOSED COLT'S MANUFACTURING CO WAS AWARDED A 25 MILLION CONTRACT TO PROVIDE THE US ARMY WITH 50800 M4 CARBINE RIFLES 9303150020 930315 AMERICAN PACESETTER'S FILING NEWPORT BEACH CALIF AMERICAN PACESETTER THE PARENT OF SAN CLEMENTE SAVINGS BANK NOW UNDER RESOLUTION TRUST CORP SUPERVISION SAID IT FILED FOR PROTECTION UNDER CHAPTER 11 OF US BANKRUPTCY CODE AMERICAN PACESETTER SAID IT INTENDS TO FOCUS ON LAND DEVELOPMENT AND INVESTMENT 9303150019 930315 CINCINNATI BELL TO SEEK PRICE RISE CINCINNATI CINCINNATI BELL TELEPHONE CO SAID IT INTENDS TO ASK FOR A PRICE INCREASE FOR LOCAL RESIDENTIAL AND BUSINESS PHONE SERVICE A MOVE THAT WOULD BOOST ANNUAL REVENUE ABOUT 16 MILLION THE PHONE COMPANY SAID ITS PROPOSAL TO BE FILED WITH THE OHIO PUBLIC UTILITIES COMMISSION CALLS FOR A 9 INCREASE IN THE PRICE OF LOCAL SERVICES EFFECTIVE JAN 1 1994 THE 1529 AUTHORIZED MONTHLY CHARGE FOR BASIC RESIDENTIAL SERVICE WOULD INCREASE BY 138 IT WOULD BE THE FIRST REQUEST FOR A PRICE INCREASE SINCE 1984 THE COMPANY SAID CINCINNATI BELL TELEPHONE IS A UNIT OF CINCINNATI BELL INC 9303150018 930315 AMRMAXWELL ACCORD OAK BROOK ILL AMR CORP'S AMERICAN AIRLINES UNIT AND MAXWELL COMMUNICATION CORP'S OFFICIAL AIRLINE GUIDES FORMED A MARKETING PARTNERSHIP TO REACH THE LATIN AMERICAN TRAVEL MARKET OFFICIAL AIRLINE SAID THAT BEGINNING THIS MONTH A SPANISH LANGUAGE OAG POCKET FLIGHT GUIDELATIN AMERICAN EDITION WILL BE DISTRIBUTED TO AMERICAN AIRLINES' PRIME CUSTOMERS THROUGHOUT LATIN AMERICA ALSO THE COMPANY SAID IT WILL DISTRIBUTE EXCLUSIVE EDITIONS OF THE OAG NORTH AMERICAN AND WORLDWIDE DESKTOP FLIGHT GUIDES TO CORPORATE TRAVEL PLANNERS IN LATIN AMERICA 9303150017 930315 RTC CLEANUP COSTS FOR FAILED THRIFTS SHOW 50 DECLINE BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT IS STILL COSTING TAXPAYERS A LOT OF MONEY FOR THE RESOLUTION TRUST CORP TO HANG ONTO FAILED THRIFT INSTITUTIONS WHILE IT WAITS FOR MORE FEDERAL FUNDING BUT THOSE EXPENSES HAVE BEEN CUT IN HALF AS THE S&L CLEANUP STARTS TO WIND DOWN THE COSTS PENDING A CONGRESSIONAL APPROPRIATION THAT WOULD REVIVE THE PROCESS OF SELLING OFF THE FAILED THRIFTS ARE DOWN TO AN ANNUAL 1 BILLION RATE ALBERT CASEY THE RTC CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT WOULD WORK OUT TO LESS THAN 3 MILLION A DAY COMPARED WITH THE 6 MILLION IN DAILY EXPENSES THE RTC HAS PREVIOUSLY CITED LEON PANETTA THE WHITE HOUSE BUDGET CHIEF HAS WARNED THAT THE FIGURE ESSENTIALLY ADOPTED FROM THE FORMER BUSH ADMINISTRATION'S ESTIMATE IS FAR FROM FIRM TREASURY SECRETARY LLOYD BENTSEN IS EXPECTED TO DISCLOSE THE AMOUNT THE CLINTON ADMINISTRATION WILL REQUEST WHEN HE TESTIFIES BEFORE THE HOUSE BANKING COMMITTEE TOMORROW ADMINISTRATION OFFICIALS SAID THE AMOUNT IS LIKELY TO EXCEED 34 BILLION REFLECTING THE ADMINISTRATION'S DESIRE TO MAKE SURE IT HAS ENOUGH MONEY TO FINISH THE THRIFT CLEANUP IN THE INTERVIEW MR CASEY WHO WILL LEAVE THE RTC TODAY REPEATED HIS ESTIMATE THAT THE RTC PORTION OF THE FUNDING WOULDN'T HAVE TO EXCEED 25 BILLION AND HE SAID THE AMOUNT WOULD PROBABLY BE LESS THAN THAT THE 3 MILLION IN DAILY RTC COSTS REFLECTS THE DIFFERENCE BETWEEN EXPENSES INCLUDING THE COST OF ATTRACTING FUNDS BY THE FAILED THRIFTS THE AGENCY CONTINUES TO HOLD AND THE GOVERNMENT'S LOWER INTEREST COSTS WHEN IT BORROWS MONEY FOR THE RTC THOSE BORROWINGS HELP PAY OFF DEPOSITS OF S&LS THAT THE AGENCY DISMANTLES OR SELLS TO OTHER FINANCIAL INSTITUTIONS SINCE IT BEGAN TAKING OVER FAILED THRIFTS IN 1989 THE RTC HAS SOLD OR OTHERWISE PAID OFF THE DEPOSITS OF 654 S&LS AT A COST OF 845 BILLION IT CURRENTLY HOLDS 83 AND THE OFFICE OF THRIFT SUPERVISION A REGULATORY AGENCY THAT CLOSES THE WEAKEST S&LS HAS ESTIMATED IT MAY DELIVER ANOTHER 30 TO THE RTC OR FDIC THIS YEAR CURRENTLY THE RTC ITSELF IS PAYING INTEREST ON 36 BILLION IN DEBT IT OWES THE TREASURY THE RTC FRIDAY REPORTED TOTAL LOSSES OF 15 BILLION FOR THE 81 S&LS IT HELD ON DEC 31 1992 UP FROM LOSSES OF 851 MILLION IN THE THIRD QUARTER WHILE THE RTC'S SALE OF THE ASSETS OF FAILED THRIFTS HAS RECOVERED AN AVERAGE 92 OF THEIR BOOK VALUE ABOUT 70 OF THE AGENCY'S CURRENT 1005 BILLION ASSET INVENTORY INVOLVES HARDTOSELL ASSETS MR CASEY SAID THE OVERALL RECOVERY RATE COULD FALL TO ABOUT 67 HE SAID ON PARTLY FINISHED DEVELOPMENTS YOU'RE LUCKY TO GET 50 OF SOME OF THAT STUFF THE RTC CHIEF SAID AND RAW LAND SALES MAY RECOVER ONLY 25 TO 40 OF BOOK VALUE THE AGENCY WILL TAKE BIDS IN APRIL FOR SALE OF THE FIRST CHUNK OF ASSETS IN ARIZONA CALIFORNIA COLORADO AND TEXAS UNDER A NEW LAND FUND WHICH POOLS A LARGE NUMBER OF THE RTC'S LAND AND LAND LOANS MR CASEY SAID THE TREASURY HAS SAID IT WON'T TRY TO STOP THE VENTURE DESPITE SOME CONGRESSIONAL OPPOSITION TO THE BULK SALES MR CASEY SAID ANY DELAY IN THE PROJECT WHICH TOOK MONTHS TO PUT TOGETHER COULD DO IRREPARABLE DAMAGE TO OUR ABILITY TO CRANK UP THE INVESTMENT COMMUNITY TO INVEST IN THE FUND HE SAID 9303150016 930315 INTERNATIONAL BRIEF BRITISH PETROLEUM PLC OUSTED CHAIRMAN WAS PAID 215 MILLION FOR LEAVING ROBERT HORTON THE OUSTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BRITISH PETROLEUM PLC WAS PAID JUST OVER 15 MILLION 215 MILLION IN COMPENSATION FOR LEAVING THE PAYOUT WAS DISCLOSED IN BP'S 1992 ANNUAL REPORT RELEASED OVER THE WEEKEND MR HORTON WHO WAS FORCED TO RESIGN IN A BOARDROOM COUP IN JUNE RECEIVED 780000 AS COMPENSATION FOR LOSS OF OFFICE AND 722740 IN A SPECIAL CONTRIBUTION TO HIS PENSION PLAN THE TOTAL PACKAGE IS ONE OF THE LARGEST RECEIVED BY A TOP EXECUTIVE IN THE UK IN RECENT YEARS MR HORTON LEFT OVER DIFFERENCES IN POLICY AND PERSONALITY CLASHES WITH OTHER DIRECTORS BP REPORTED A NET LOSS OF 458 MILLION FOR 1992 COMPARED WITH A TAXABLE PROFIT OF 415 MILLION IN 1991 MR HORTON CURRENTLY IS EMPLOYED AS THE PARTTIME CHAIRMAN OF RAILTRACK A BRITISH RAIL SUBSIDIARY EARNING 28000 IN 1991 WHILE AT BP MR HORTON RECEIVED A BASIC SALARY OF 480000 AND A BONUS TOTALING 307000 9303150015 930315 INTERNATIONAL CHINA EXPECTED TO RESHUFFLE LEADERS ACCORDING TO DENG'S SUCCESSION PLAN BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING IN TRYING TO PREPARE CHINA'S COMMUNIST GOVERNMENT TO SURVIVE HIS OWN DEMISE PARAMOUNT LEADER DENG XIAOPING APPEARS TO BE TIGHTENING LINES OF AUTHORITY FOR WEATHERING POLITICAL STORMS WHILE EXPANDING A LEGAL CODE TO CHART A MORE LONGRANGE COURSE THIS IS EXPECTED TO BECOME MORE APPARENT AS 2977 DELEGATES TO CHINA'S RUBBERSTAMP NATIONAL PEOPLE'S CONGRESS GATHER IN BEIJING TO BEGIN A NEW FIVEYEAR TERM BY LAW IN THEIR FIRST ANNUAL TWOWEEK SESSION BEGINNING TODAY THE DELEGATES MUST RATIFY A NEW SLATE OF GOVERNMENT LEADERS IF PREDICTIONS ARE CORRECT THE DELEGATES WILL APPROVE A RESHUFFLE THAT PUTS ALL THE IMPORTANT GOVERNMENT UNITS AND POTENTIAL POWER CENTERS DIRECTLY IN THE HANDS OF SIX MEN WHO SERVE ON THE COMMUNIST PARTY POLITBURO'S DECISIONMAKING STANDING COMMITTEE IN THE PAST THESE GOVERNMENT POSTS WERE DISTRIBUTED TO A WIDER GROUP THAT INCLUDED ELDERLY VETERANS OF THE REVOLUTION WHO SOMETIMES COMMANDED THEIR OWN PARTY FACTIONS THE RESHUFFLE IS THE SECOND STEP IN A PROCESS BEGUN LAST OCTOBER WHEN THE CHINESE COMMUNIST PARTY'S CONGRESS AN EVENT HELD EVERY FIVE YEARS INSTALLED A REVISED PARTY LEADERSHIP HANDPICKED BY MR DENG THE DEPUTIES ALSO ARE SCHEDULED TO APPROVE A GROUP OF LAWS TO ADD TO A GROWING LEGAL CODE THAT MR DENG APPARENTLY HOPES WILL SOMEDAY LEAD TO GOVERNMENT BY INSTITUTIONS INSTEAD OF BY THE PERSONAL WHIMS OF LEADERS ANALYSTS SAY THAT THIS DESIRE SPRINGS FROM MR DENG'S EXPERIENCES DURING THE CULTURAL REVOLUTION AS A VICTIM OF MAO'S LAWLESS CULT OF PERSONALITY MR DENG 88 YEARS OLD RETURNED FROM RURAL EXILE IN 1976 ESPOUSING THE NEED FOR LAWS AND HINTING AT POLITICAL PLURALISM SINCE THEN ANALYSTS SAY MR DENG HAS CONCLUDED THAT POLITICAL REFORM IS TOO DESTABILIZING AND INSTEAD WANTS TO BUILD A RATIONAL SYSTEM THROUGH LAWS THE FLAW IN THIS PLAN IS THAT MR DENG WHO IS FRAIL AND RECLUSIVE IS IN THE SHORTTERM FASHIONING RULE BY LAW NOT RULE OF LAW THE PARTY WILL CONTINUE TO BE THE LAW BECAUSE ALL COURTS ARE STILL SUPERVISED BY PARTY COMMITTEES ON PAPER THE NATIONAL PEOPLE'S CONGRESS IS THE HIGHEST AUTHORITY IN CHINA ITS MEMBERSHIP IS A COLLECTION OF MODEL CITIZENS WHO GET TO THE NATIONAL LEVEL BY BEING CHOSEN BY THEIR PEERS IN LOCAL PEOPLE'S CONGRESSES THE ROSTER OF SENIOR GOVERNMENT OFFICIALS THAT THE DELEGATES WILL SOON RATIFY WAS FINALIZED AT A SECRET MEETING OF THE PARTY CENTRAL COMMITTEE JUST ONE WEEK AGO WHILE THAT LIST REMAINS SECRET LEAKS TO THE HONG KONG MEDIA AND COMMENTS TO FOREIGNERS BY CHINESE OFFICIALS OFFER A PICTURE OF WHAT LIES AHEAD THERE SEEMS LITTLE DOUBT THAT PREMIER LI PENG 64 WILL GET ANOTHER TERM MR LI ALREADY HAS A FIVENATION TOUR SCHEDULED FOR LATE APRIL AND EARLY MAY HARDLY THE PLANS OF A MAN SOON TO BE UNEMPLOYED PARTY CHIEF JIANG ZEMIN 67 IS EXPECTED TO EMERGE FROM THE CONGRESS WITH A TRIPLECROWN IN ADDITION TO HIS CURRENT POSTS OF PARTY GENERAL SECRETARY AND CHAIRMAN OF THE CENTRAL MILITARY COMMISSION MR JIANG IS EXPECTED TO BE APPOINTED STATE PRESIDENT BY SHEER STRENGTH OF TITLES THIS WOULD GIVE MR JIANG STATUS UNRIVALED SINCE MAO AND MAO'S CHOSEN SUCCESSOR HUA GUOFENG BUT MANY ANALYSTS BELIEVE THAT GETTING THE PRESIDENCY IS MORE A REFLECTION OF MR JIANG'S WEAKNESS DOMESTICALLY AND THE PARTY'S ISOLATION INTERNATIONALLY AS A COMMUNIST PARTY CHIEF IN A POSTCOLD WAR WORLD THERE ARE FEW PLACES OUTSIDE CUBA NORTH KOREA AND VIETNAM WHERE MR JIANG CAN EASILY VENTURE SO THE PRESIDENCY WILL GIVE HIM A TICKET TO TRAVEL AT HOME THE PRESIDENTIAL POST REINFORCES MR DENG'S DESIGNATION OF MR JIANG AS THE CORE OF THE CURRENT LEADERSHIP THE CONVENTIONAL WISDOM AMONG CHINA WATCHERS IS THAT WITH MR JIANG OCCUPYING ALL THE TOP POSITIONS IN CHINA HE CAN BE PROPPED UP AS THE FACE OF A STABLE TRANSITION WHILE POSTDENG POWER STRUGGLES TAKE PLACE OUT OF PUBLIC SIGHT AFTER MAO'S DEATH MR HUA RETAINED MOST OF HIS TITLES FOR FOUR YEARS BUT HAD REAL POWER FOR ONLY A MATTER OF MONTHS OTHER EXPECTED APPOINTMENTS AT THE CONGRESS INCLUDE QIAO SHI 68 THE PARTY'S LONGTIME SECRET POLICE OVERLORD AS CHAIRMAN OF THE NATIONAL PEOPLE'S CONGRESS AND LI RUIHUAN 64 FORMER CHIEF OF PARTY IDEOLOGY AS CHAIRMAN OF THE CHINESE PEOPLE'S POLITICAL CONSULTATIVE CONFERENCE AN ADVISORY GROUP MADE UP OF PROMINENT PEOPLE RANGING FROM SCIENTISTS TO MOVIE STARS WHOM THE PARTY WANTS TO KEEP IN CLOSE POLITICAL ORBIT WHILE BOTH THESE BODIES ARE NOT POWERFUL NOW IN A POSTDENG CHINA THEY COULD BECOME TOOLS FOR USE IN FACTIONAL STRUGGLES IN THE LONG TERM THEY ALSO COULD SERVE AS VEHICLES FOR BUILDING A MORE PLURALISTIC POLITICAL SYSTEM ZHU RONGJI 64 IS EXPECTED TO REMAIN VICE PREMIER IN CHARGE OF THE ECONOMY LIU HUAQING A 76YEAROLD GENERAL IS SLATED TO CONTINUE AS VICE CHAIRMAN AND THEREFORE DAYTODAY OVERSEER OF THE CENTRAL MILITARY COMMISSION HU JINTAO THE 50YEAROLD FORMER PARTY SECRETARY OF TIBET IS EXPECTED TO FORGO A GOVERNMENT POST SO HE CAN CONCENTRATE ON PARTY BUILDING THESE SEVEN PEOPLE CURRENTLY MAKE UP THE PARTY POLITBURO'S STANDING COMMITTEE WITH MR DENG'S EMPHASIS ON FAST ECONOMIC REFORM THERE IS ALSO MUCH SPECULATION THAT THE RED CAPITALIST RONG YIREN 76 THE CURRENT CHAIRMAN OF CHINA INTERNATIONAL INVESTMENT & TRUST CO WILL BECOME STATE VICE PRESIDENT IN DRAFTING LAWS REFORMERS ARE CONCENTRATING ON CRAFTING BUSINESS STATUTES TO GUIDE CHINA'S TRANSITION TO A MARKET ECONOMY THE IDEA IS THAT DELINEATING ECONOMIC RIGHTS AND OBLIGATIONS FOR BUSINESS ENTITIES AND GOVERNMENT AGENCIES CAN SERVE AS A PRECURSOR TO STATUTES THAT SPELL OUT THE RIGHTS AND OBLIGATIONS OF CITIZENS AND THE OFFICIALS WHO GOVERN THEM THE PARTY'S SUPREMACY HOWEVER IS EXPLICITLY SPELLED OUT IN THE CONSTITUTION WHICH IS SET TO BE REVISED AT THIS CONGRESS SESSION STATE MEDIA SAY THAT SUCH PHRASES AS UNDER THE LEADERSHIP OF THE CHINESE COMMUNIST PARTY AND ADHERE TO THE PEOPLE'S DEMOCRATIC DICTATORSHIP WILL REMAIN UNCHANGED BUT THERE IS EXPECTED TO BE NEW WORDING SAYING THAT CHINA PRACTICES A SOCIALIST MARKET ECONOMY TO REPLACE THE CURRENT PHRASE THAT STRESSES GOVERNMENT ECONOMIC PLANNING WITH A SUPPLEMENTARY ROLE PLAYED BY MARKET REGULATION 9303150014 930315 BLACKSTONE YANKS 13 BILLION OFFER FOR UNIVA AFTER AGENCY'S OBJECTIONS BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL BLACKSTONE GROUP LP CALLED OFF ITS PROPOSED OFFER OF 16 BILLION CANADIAN DOLLARS US13 BILLION FOR SUPERMARKET OPERATOR UNIVA INC AVERTING A BATTLE WITH THE POWERFUL INSTITUTION THAT MANAGES QUEBEC'S PENSION FUNDS BLACKSTONE'S MOVE FOLLOWED RUMBLINGS BY THE CAISSE DE DEPOT ET PLACEMENT DU QUEBEC OF A POSSIBLE LEGAL CHALLENGE TO THE DEAL WHICH WOULD HAVE BEEN ONE OF THE BIGGEST LEVERAGED TRANSACTIONS IN RECENT YEARS THE CAISSE A LONGTIME UNIVA SHAREHOLDER OBJECTED TO THE PROPOSAL'S TERMS AND WARNED THE TRANSACTION WOULD SADDLE THE COMPANY WITH A DANGEROUS DEBT BURDEN QUEBEC NATIONALISTS ALSO RAISED FEARS THE BUYOUT WOULD LEAD TO A BREAKUP OF UNIVA OR CAUSE IT TO FALL INTO THE HANDS OF A SUPERMARKET CHAIN OUTSIDE THE FRENCHSPEAKING PROVINCE DESPITE ASSURANCES TO THE CONTRARY BY BLACKSTONE AND ITS WOULDBE PARTNER UNIGESCO INC A MONTREAL COMPANY THAT IS UNIVA'S PRINCIPAL SHAREHOLDER BLACKSTONE'S PRESIDENT AND CHIEF EXECUTIVE STEPHEN SCHWARZMAN INFORMED UNIVA'S BOARD IN A LETTER FRIDAY THAT IN VIEW OF THE LIKELIHOOD OF A PROTRACTED AND UNCERTAIN PROCESS WE BELIEVE THE BEST INTERESTS OF UNIVA AND ITS SHAREHOLDERS WOULD NOT BE WELLSERVED BY OUR PURSUING OUR PROPOSAL ANY FURTHER WHEN THE PROPOSAL WAS UNVEILED A MONTH EARLIER MR SCHWARZMAN HAD STRESSED BLACKSTONE'S COMMITMENT TO INVESTING IN FRIENDLY TRANSACTIONS THE COLLAPSE OF THE C11 US882 A SHARE PROPOSAL DROVE UNIVA'S STOCK SHARPLY LOWER FRIDAY IN TRADING ON THE MONTREAL EXCHANGE UNIVA CLOSED AT C788 DOWN C150 AND AROUND THE LEVEL IT WAS TRADING AT BEFORE THE PROPOSAL WAS FLOATED BUT THAT DOESN'T END THE TANGLED STORY UNIGESCO A HARDWAREDISTRIBUTION COMPANY THAT HATCHED THE BUYOUT PLAN AS A WAY TO EASE ITS OWN DEBT BURDEN NOW MUST FIND OTHER MEANS OF MEETING C62 MILLION US497 MILLION IN DEBT OBLIGATIONS BY JUNE IN TRADING ON THE MONTREAL EXCHANGE ON FRIDAY UNIGESCO CLOSED AT 90 CANADIAN CENTS DOWN 30 CENTS BERTIN NADEAU UNIGESCO'S CHAIRMAN AND CHIEF EXECUTIVE SAID IN A TERSE NEWS RELEASE THAT THE WITHDRAWAL OF THE BLACKSTONEUNIGESCO PROPOSAL PROMPTS US TO REFOCUS OUR ATTENTION AND OUR ENERGY ON THE OTHER AVAILABLE OPTIONS TO MAXIMIZE THE VALUE OF OUR INVESTMENT IN UNIVA UNIGESCO OWNS A 26 STAKE IN UNIVA MR NADEAU A FORMER UNIVERSITY PROFESSOR WHO ALSO IS CHAIRMAN AND CHIEF EXECUTIVE OF UNIVA BOUGHT MUCH OF UNIGESCO'S HOLDINGS IN THE SUPERMARKET COMPANY FROM THE CAISSE WHICH RETAINS ABOUT A 17 STAKE THE CAISSE ON FRIDAY QUICKLY SIGNALED ITS DESIRE TO FIGURE IN MR NADEAU'S OPTIONS SAYING IT IS PREPARED TO HAVE DISCUSSIONS REGARDING UNIGESCO'S FINANCES IN A STATEMENT THE CAISSE ALSO SAID THAT TO MEET PROFITABILITY TARGETS UNIVA NEEDS A CORE GROUP OF STABLE LONGTERM SHAREHOLDERS WITH A STRONG FINANCIAL CAPACITY A CAISSE SPOKESWOMAN SAID THAT DOESN'T MEAN THE CAISSE HOPES TO PUT ASIDE CASHSTRAPPED UNIGESCO MR NADEAU IS SAID TO HAVE SOUGHT FINANCIAL HELP FROM THE CAISSE LAST SUMMER AND BEEN REBUFFED UNDER THE PLAN HE LATER WORKED OUT WITH BLACKSTONE UNIGESCO WOULD HAVE KEPT A 20 EQUITY STAKE IN UNIVA THE NEW YORK COMPANY'S INVESTMENT FUND BLACKSTONE CAPITAL PARTNERS WOULD HAVE PROVIDED C300 MILLION IN CAPITAL WITH UNIGESCO PUTTING UP C75 MILLION BESIDES BORROWING ENOUGH ADDED MONEY TO PAY UNIVA'S SHAREHOLDERS MORE THAN C1 BILLION THE INVESTMENT GROUP WOULD HAVE ASSUMED UNIVA'S ESTIMATED OUTSTANDING DEBT OF AROUND C535 MILLION AT THE DEAL'S CLOSING THE PLAN CALLED FOR BLACKSTONE TO SELL ITS 80 STAKE IN UNIVA TO THE PUBLIC OVER THE NEXT THREE TO SEVEN YEARS ENABLING UNIGESCO TO REEMERGE AS PRINCIPAL SHAREHOLDER BUT THE CAISSE AND SOME ANALYSTS DOUBTED BLACKSTONE COULD GET ITS DESIRED RETURNS WITHOUT BREAKING UP UNIVA WHICH HAS ANNUAL SALES OF MORE THAN C65 BILLION BESIDES ITS PROVIGO SUPERMARKETS IN QUEBEC UNIVA OPERATES FOODDISTRIBUTION UNITS IN ONTARIO AND CALIFORNIA MR SCHWARZMAN'S LETTER FRIDAY TO UNIVA DIRECTORS APPEARED TO LEND SOME SUPPORT TO THE CONCERNS ABOUT LEVERAGE A DUE DILIGENCE INVESTIGATION HAS RAISED SOME QUESTIONS ABOUT THE VALUATIONS ON WHICH OUR PROPOSAL WAS BASED INCLUDING A HIGHERTHANEXPECTED PROJECTED DEBT BALANCE FOR UNIVA AT CLOSING MR SCHWARZMAN WROTE BLACKSTONE HAS DEFINITIVELY DECIDED THAT IT WILL NOT AGREE TO ANY INCREASE IN ITS C11 PER SHARE PROPOSAL NOTWITHSTANDING THE STRONG OPPOSITION OF THE CAISSE WHICH HAS ARGUED THAT UNIVA'S LONGTERM VALUE IS HIGHER THROUGH AN AIDE MR SCHWARZMAN DECLINED TO ELABORATE ON THE LETTER 9303150013 930315 MARKETING & MEDIA COX OFFERS A SERVICE FOR INFORMATION USING THREEDIGIT DIALING ATLANTA COX ENTERPRISES INC USING A NEW PHONE SERVICE FROM BELLSOUTH CORP TURNED ON THE NATION'S FIRST COMMERCIAL INFORMATION SERVICE REACHED BY DIALING JUST THREE DIGITS 511 THE SERVICE IS OPERATED IN THE PALM BEACH FLA AREA BY THE PALM BEACH POST A COX UNIT CALLERS CAN GET NEWS UPDATES STOCK QUOTES SPORTS NEWS RESTAURANT AND BOOK REVIEWS AND OTHER INFORMATION FOR A FEE OF 35 CENTS FOR UP TO FIVE MINUTES LAST YEAR COX REQUESTED THAT BELLSOUTH MAKE THREEDIGIT NUMBERS AVAILABLE FOR INFORMATION SERVICES ARGUING THAT THE PHONE COMPANY USES A THREEDIGIT CODE 411 TO PROVIDE A TYPE OF INFORMATION SERVICE DIRECTORY ASSISTANCE SINCE THE COX REQUEST BELLSOUTH HAS ASKED REGULATORS IN FLORIDA AND GEORGIA TO ALLOW THE PHONE COMPANY TO MAKE 211 311 511 711 AND 811 AVAILABLE ON A FIRSTCOME FIRSTSERVED BASIS TO NONTELEPHONE COMPANY INFORMATION PROVIDERS THE FEDERAL COMMUNICATIONS COMMISSION IS ALSO EXAMINING THE ISSUE LAST FALL FLORIDA REGULATORS LET THE PALM BEACH POST USE THE 511 NUMBER UNDER AN EXPERIMENTAL RATE FILING AND WILL BEGIN HEARINGS IN JULY ON A STATEWIDE POLICY GOVERNING THREEDIGIT DIALING A SIMILAR TARIFF IS UNDER CONSIDERATION BY GEORGIA REGULATORS BOTH COX AND BELLSOUTH ARE BASED IN ATLANTA 9303150012 930315 WORK & FAMILY BY SUE SHELLENBARGER WORKFAMILY CONFLICT HITS THE ULTIMATE FASTTRACK FIELD MANAGEMENT CONSULTING CONSULTANTS' HEAVY TRAVEL AND LONG HOURS HELP FOSTER 15 ANNUAL TURNOVER AND INCREASINGLY HURT FIRMS' ABILITY TO RECRUIT TOP MBA GRADUATES PLACEMENT OFFICIALS SAY A FEW BIG FIRMS ARE REDUCING TRAVEL OR CHANGING POLICIES TO HELP EMPLOYEES BALANCE WORK AND PERSONAL LIFE CSC INDEX BASED IN CAMBRIDGE MASS TRIPLED ITS STANFORD UNIVERSITY RECRUITS LAST YEAR AND IS HOLDING TURNOVER TO HALF THE INDUSTRY RATE BY PORTRAYING ITSELF AS A FIRM OUT TO CHANGE THE NATURE OF THE CONSULTING BUSINESS SAYS FRANK PETRO MANAGER OF ITS SAN FRANCISCO OFFICE WE DESCRIBE OURSELVES AS AN IMMIGRANT FAMILY WE SET VERY HIGH GOALS FOR OURSELVES PEOPLE TRUST EACH OTHER WE CAN SPEAK OPENLY WITH EACH OTHER AND WE MAKE A LOT OF ACCOMMODATIONS FOR PEOPLE'S PERSONAL AND FAMILY LIVES JAMES HINE WHO HAD WORKED FOR TWO OTHER FIRMS WAS PLANNING TO QUIT CONSULTING UNTIL HE WAS RECRUITED BY CSC THE FIRM ALLOWED HIM TO SET UP A SATELLITE OPERATION FOR CLIENTS NEAR LOS ANGELES WHERE HIS WIFE PREFERS TO LIVE MARK KENNEDY A NORTHWESTERN UNIVERSITY MBA GRADUATE AND FATHER OF TWO CHOSE CSC INDEX OVER SIX OTHER OFFERS PARTLY BECAUSE OF ITS MARKEDLY DIFFERENT CULTURE GEMINI CONSULTING BASED IN MORRISTOWN NJ TRIES TO TRIM ITS CONSULTANTS' TYPICAL TRAVEL DEMANDS TO FOUR DAYS A WEEK FROM FIVE AND TO KEEP WEEKENDS SACRED SAYS FREDERICK STURDIVANT A SENIOR VICE PRESIDENT GEMINI ALLOWS SOME CONSULTANTS TO LIVE WHEREVER THEY WANT GATHERING THEM FOR PERIODIC MEETINGS AT SATELLITE SITES MCKINSEY & CO HAS ADOPTED A POLICY ALLOWING PARTTIME CONSULTING THE FIRM ALSO MAKES IT CLEAR THAT PEOPLE GOING THROUGH DIFFICULT PERSONAL SITUATIONS CAN MODIFY TRAVEL REQUIREMENTS SAYS JEROME VASCELLARO A MCKINSEY DIRECTOR CSC INDEX'S MR HINE ADDS THAT FOR CONSULTING FIRMS AVOIDING BURNOUT AMONG EMPLOYEES ISN'T AN ALTRUISTIC THING AT ALL IN THIS BUSINESS THE ONLY ASSETS ARE PEOPLE WOMEN START MORE BUSINESSES AT EARLIER AGES TO GAIN FLEXIBILITY AND INDEPENDENCE WOMEN OWNED ABOUT 32 OF THE NATION'S SOLE PROPRIETORSHIPS IN 1990 UP FROM 26 IN 1980 THE SMALL BUSINESS ADMINISTRATION SAYS WITH WOMEN EXPECTED TO FORM BUSINESSES 15 TIMES FASTER THAN MEN DURING THE 1990S THE SBA PREDICTS THEY WILL OWN 40 OF SMALL BUSINESSES BY 2000 WE'RE SEEING FOR THE FIRST TIME ENTREPRENEURSHIP BEING VIEWED AS A CAREER ALTERNATIVE BY YOUNG WOMEN IN THEIR 20S AN SBA OFFICIAL SAYS YOUNGER WOMEN ARE DISCOURAGED ABOUT THEIR CORPORATE PROSPECTS BY LAYOFFS AS WELL AS THE GLASS CEILING WHEN 29YEAROLD LAURA ODEN'S FORMER EMPLOYER A PERSONNEL AGENCY WAS ACQUIRED AND HER JOB ELIMINATED I FELT THAT IF I DIDN'T START MY OWN BUSINESS I WAS GOING TO HAVE TO TAKE A BUNCH OF STEPS BACKWARD IN A CORPORATE JOB SHE SAYS SO SHE STARTED ECOCARTRIDGE A WASHINGTON DC TONERCARTRIDGE RECYCLER TO MAINTAIN CONTROL OVER WHAT I WAS DOING LISA MEISNER 26 PREFERS WORKING LONG HOURS AT HER COLLEGE PARK MD CARD SHOP TO HAVING A MORE STRUCTURED JOB SHE SEES ADDED BENEFITS IF SHE HAS A FAMILY LOOKING AROUND HER STORE SHE SAYS I THINK I COULD FIT A CRIB IN HERE STATES' REGULATION OF CHILD CARE IS WEAKENING ACCORDING TO A CONGRESSIONAL WATCHDOG DESPITE RISING PUBLIC CONCERN OVER FIRES ABUSE AND OTHER PROBLEMS AT CHILDCARE CENTERS MANY STATES HAVE REDUCED POLICING EFFORTS BECAUSE OF STAFF AND BUDGET CUTS THE GENERAL ACCOUNTING OFFICE SAYS VISITS TO CHILDCARE CENTERS BY REGULATORS ARE THE BEST WAY TO ENFORCE RULES ON GROUP SIZE SAFETY CLEANLINESS AND OTHER STANDARDS BUT 18 STATES HAVE REDUCED ONSITE VISITS SINCE 1989 A GAO STUDY FOUND THIRTEEN STATES DIDN'T MEET THEIR OWN POLICING REQUIREMENTS VISITING CENTERS ABOUT ONCE A YEAR INSTEAD OF TWICE AS THEIR OWN RULES TYPICALLY REQUIRED AND 20 STATES FAILED TO CONDUCT EVEN ONE UNANNOUNCED VISIT A YEAR A MINIMUM RECOMMENDED BY THE NATIONAL ASSOCIATION FOR THE EDUCATION OF YOUNG CHILDREN AN ACCREDITING GROUP FEDERAL RULES FOR HANDING OUT MORE THAN 1 BILLION IN CHILDCARE GRANTS TO THE STATES UNDER A 1990 LAW MAY MAKE MATTERS WORSE THE GAO SAYS THE MEASURE IS INCREASING STATES' CASELOADS BY ENCOURAGING NEW CHILDCARE PROVIDERS TO ENTER THE FIELD BUT IT ALSO LIMITS THE FEDERAL MONEY STATES CAN SPEND ENFORCING QUALITY STANDARDS SPOUSES GIVE BOSSES AN EARFUL AT PPG INDUSTRIES MANAGEMENTTRAINING SESSIONS FOURTEEN SPOUSES OF FASTTRACK EMPLOYEES OF THE PITTSBURGHBASED COMPANY ATTENDED A RECENT ONEWEEK SESSION AIMED AT HELPING THEM LEARN ABOUT PPG AND COPE WITH WORKFAMILY CONFLICTS THE SPOUSES ALSO TALKED ABOUT THEIR PROBLEMS INCLUDING FREQUENT TRANSFERS AND TRAVEL MAINTAINING A SENSE OF PERSONAL IDENTITY WHEN MARRIED TO A FASTTRACK PROFESSIONAL AND HELPING CHILDREN COPE WITH PARENTS' DEMANDING CAREERS SOME SUGGESTIONS FROM THE SPOUSES ACCORDING TO STEPHEN MCINTOSH PPG'S DIRECTOR OF TRAINING DEVELOPMENT AND EDUCATION EMPLOYERS SHOULD OFFER MORE CONTACTS AND MENTORS FOR FAMILIES OF TRANSFERRED EMPLOYEES SPOUSES SHOULD BE ASKED FOR SUGGESTIONS IN PLANNING MOVES THAT AFFECT FAMILIES COMPANIES SHOULD HELP SET UP A SPOUSES' NETWORK ALSO EMPLOYERS MIGHT OFFER SIMPLE PERSONALITY TESTS TO FAMILY MEMBERS TO HELP THEM DISCUSS WORKFAMILY CONFLICTS WITH EACH OTHER SPOUSES SAID THEY LEARNED A LOT ABOUT PPG FROM THE SESSIONS WHICH THE COMPANY PLANS TO CONTINUE ANY FULLY SUCCESSFUL MANAGER HAS TO BE ABLE TO BALANCE CAREER AND HOME AND SPOUSES ARE CRUCIAL TO THAT EFFORT MR MCINTOSH SAYS 9303150011 930315 CREDIT RATINGS EASTMAN KODAK CO ROCHESTER NY STANDARD & POOR'S CORP SAID IT UPGRADED ITS RATING ON EASTMAN KODAK CREDIT CORP'S SENIOR DEBT TO TRIPLEA FROM SINGLEAMINUS ABOUT 180 MILLION OF DEBT IS AFFECTED THEY SAID IN ADDITION EKCC'S A2 COMMERCIAL PAPER RATING WAS WITHDRAWN DUE TO THE DISCONTINUANCE OF THIS COMMERCIAL PAPER PROGRAM THEY SAID S&P SAID IT REMOVED ALL RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED NOV 30 1992 WITH POSITIVE IMPLICATIONS S&P SAID THE UPGRADE REFLECTS THE RECENT ACQUISITION OF EKCC BY GENERAL ELECTRIC CAPITAL CORP TRIPLEA SENIOR DEBT A UNIT OF GENERAL ELECTRIC CO EASTMAN KODAK CO SINGLEAMINUS SENIOR DEBT HAS TERMINATED ITS OBLIGATIONS UNDER THE PRIOR SUPPORT AGREEMENT AND THESE OBLIGATIONS HAVE BEEN ASSUMED BY GECC FOLLOWING THE REQUIRED APPROVAL OF THIS SUBSTITUTION BY OVER TWOTHIRDS OF THE MEDIUMTERM NOTE HOLDERS S&P SAID THE PRESENT SUPPORT AGREEMENT PROVIDES FOR 100 OWNERSHIP BY GECC AND MAINTENANCE OF TANGIBLE NET WORTH ALTHOUGH GECC IS NOT PROVIDING A GUARANTEE OR ASSUMPTION OF THE DEBT EKCC BENEFITS FROM THE EXPLICIT SUPPORT AGREEMENT IMPROVED FUNDING COSTS AND GECC'S STRONG MANAGEMENT CAPABILITIES S&P SAID CONCURRENT WITH THE ACQUISITION BY GECC EKCC'S STABLE OUTLOOK MIRRORS THAT OF ITS PARENT COMPANY S&P SAID MARRIOTT CORP BETHESDA MD STANDARD & POOR'S CORP SAID THAT MARRIOTT CORP'S SENIOR DEBT RATINGS REMAIN ON ITS CREDITWATCH WITH NEGATIVE IMPLICATIONS DESPITE CHANGES IN THE COMPANY'S PLAN TO SPLIT INTO A DEBTLADEN REAL ESTATE ARM AND A HOTEL MANAGEMENT COMPANY S&P IN NEW YORK SAID THAT BENEFITS OF THE PROPOSED CHANGES ARE OFFSET BY PROPOSED HIGHER INTEREST COSTS FOR HOST MARRIOTT CORP THE REAL ESTATE ARM AND THE TRANSFER OF ASSETS INCLUDING TWO RETIREMENT COMMUNITIES TO THE HOTEL MANAGEMENT ARM MARRIOTT INTERNATIONAL INC ALTHOUGH THE PROPOSED REVISIONS WOULD CUT HOST MARRIOTT'S DEBT LOAD BY 500 MILLION AND EASE NEARTERM FINANCING PRESSURES S&P SAID HOST MARRIOTT'S DEBT RATING IS EXPECTED TO REMAIN IN THE LOW TO MIDSPECULATIVE GRADE S&P LOWERED RATINGS ON MARRIOTT'S SENIOR UNSECURED DEBT TO SINGLEB FROM TRIPLEB LAST NOVEMBER AFTER THE COMPANY UNVEILED THE RESTRUCTURING PLAN OCCIDENTAL PETROLEUM CORP LOS ANGELES MOODY'S INVESTORS SERVICE INC SAID IT CONFIRMED ITS RATINGS ON 47 BILLION OF OCCIDENTAL PETROLEUM DEBT AND PREFERRED STOCK THE RATINGS COMPANY EARLIER PLACED THE SECURITIES UNDER REVIEW FOR A POSSIBLE DOWNGRADE OCCIDENTAL PETROLEUM'S LONGTERM DEBT IS RATED BAA2 BY MOODY'S ITS CONVERTIBLE PREFERRED STOCK IS RATED BAA3 AND ITS COMMERCIAL PAPER IS RATED PRIME2 MOODY'S SAID ITS CONFIRMATION WAS BASED ON AN ASSESSMENT THAT ALTHOUGH OCCIDENTIAL'S CORE EARNINGS AND CASH FLOW WILL IMPROVE ONLY MODESTLY THIS YEAR THE COMPANY SHOULD SHOW MORE MEASURABLE IMPROVEMENTS IN CASH FLOW AND FIXED CHARGE PROTECTION IN THE FUTURE 9303150010 930315 BOMBING PROBE MAY REVEAL TIES TO OTHER CRIMES GROUP BEING INVESTIGATED MIGHT BE CONNECTED TO FAKE CASH MURDERS BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTIGATORS OF THE WORLD TRADE CENTER BOMBING ARE FOCUSING ON A GROUP OF RADICAL MUSLIMS IN THE NEW YORK AREA THAT MAY ALSO HAVE HAD TIES TO A COUNTERFEITMONEY RING A GUERRILLATRAINING BASE IN CONNECTICUT AND SEVERAL MURDERS AT THE CENTER OF THE INVESTIGATION THOUGH AS A SUSPECTED INSTIGATOR NOT AS A PERPETRATOR IS SHEIK OMAR ABDELRAHMAN A BLIND EGYPTIAN CLERIC WHO WHILE ON THE OFFICIAL US TERRORIST LIST WAS MISTAKENLY ALLOWED TO ENTER THE US IN 1990 ON A TOURIST VISA LAWENFORCEMENT OFFICIALS SAID FRIDAY THEY ARE REEXAMINING THE 1990 MURDER OF MILITANT RABBI MEIR KAHANE AND THE 1991 KILLING OF MUSLIM POLITICAL ACTIVIST MUSTAFA SHALABI THE FEDERAL BUREAU OF INVESTIGATION HAS INTERROGATED SHEIK OMAR IN CONNECTION WITH BOTH MURDERS IN THE PAST BUT NO CHARGES AGAINST HIM WERE BROUGHT THE SHEIK BELIEVED TO BE IN SECLUSION NOW IN DETROIT IS FACING DEPORTATION EFFORTS BY THE US THE BOMBING INVESTIGATION HAS REVEALED NEW EVIDENCE THAT A NETWORK OF FOLLOWERS AND ASSOCIATES OF SHEIK OMAR MAY ACTUALLY HAVE BEEN THE NUCLEUS OF A MILITANT ISLAMIC CELL OF PARTICULAR INTEREST TO INVESTIGATORS IS THE ROLE OF EL SAYYID NOSAIR THE EGYPTIAN ACQUITTED OF MURDERING RABBI KAHANE BUT SERVING SEVEN TO 23 YEARS IN PRISON FOR A RELATED SHOOTING MR NOSAIR WORSHIPPED AT TWO MOSQUES WHERE SHEIK OMAR PREACHED AND WAS A CLOSE ASSOCIATE OF MOHAMMED SALAMEH THE PALESTINIAN BOMBING SUSPECT ARRESTED AFTER RETURNING TO COLLECT A 400 DEPOSIT ON THE RENTED VAN THAT ALLEGEDLY CARRIED THE EXPLOSIVES INTO THE WORLD TRADE CENTER MR NOSAIR IS ALSO A COUSIN OF IBRAHIM ELGABROWNY WHO IS BEING HELD WITHOUT BAIL IN CONNECTION WITH THE BOMBING MR SALAMEH PUT MR ELGABROWNY'S BROOKLYN ADDRESS AN APARTMENT WHERE MR NOSAIR'S WIFE AND THREE CHILDREN ALSO LIVE ON HIS NEW YORK DRIVER'S LICENSE APPLICATION MR ELGABROWNY IS A CLOSE ASSOCIATE OF SHEIK OMAR'S AND HE IS THE PRESIDENT OF THE ABU BAKR MOSQUE IN BROOKLYN THE ONLY NEW YORKAREA MOSQUE THAT HAS ALLOWED SHEIK OMAR TO PREACH REGULARLY IN RECENT MONTHS FEDERAL AGENTS FOUND FIVE FRAUDULENT NICARAGUAN PASSPORTS IN MR ELGABROWNY'S APARTMENT IN THE NAMES OF MR NOSAIR AND HIS FAMILY PROMPTING DISCIPLINARY CHARGES AGAINST MR NOSAIR AT NEW YORK'S ATTICA STATE PRISON FOR PLOTTING TO ESCAPE MOST INTRIGUING OF ALL HOWEVER COULD STILL BE THE UNSOLVED SHALABI MURDER WHICH INVESTIGATORS JUST REOPENED IN THE MID1980S MR SHALABI FOUNDED A CHARITY GROUP TO AID MUJAHEDEEN REBELS IN AFGHANISTAN BUT FELLOW MUSLIMS IN BROOKLYN SAY THE GROUP EVOLVED INTO AN UMBRELLA ORGANIZATION FOR RADICAL ISLAMIC CAUSES ACROSS THE MIDEAST MONEY WAS RAISED FOR MUSLIM REVOLUTIONARIES BROOKLYN PEOPLE SAY AND LOCALS WERE RECRUITED AND GIVEN WEAPONS TRAINING AT A FACILITY IN CONNECTICUT THOUGH IT ISN'T CLEAR IF ANY SAW ACTION OUTSIDE THE US MR SHALABI A NATURALIZED US CITIZEN BORN IN EGYPT WAS SHEIK OMAR'S FIRST SPONSOR IN THE US HE WAS ALSO CLOSE TO MR ELGABROWNY WHO DID CARPENTRY WORK FOR THE BROOKLYN JIHAD OFFICE AS MR SHALABI'S ORGANIZATION WAS DUBBED NOT LONG AFTER SHEIK OMAR CAME TO THE US HE AND MR SHALABI STARTED PUBLICLY FEUDING SEVERAL MONTHS LATER MR SHALABI WAS FOUND MURDERED LOCAL ARAB IMMIGRANTS AND POLICE DETECTIVES HAVE LONG FIGURED THAT SHEIK OMAR AND MR SHALABI FELL OUT OVER MONEY SHEIK OMAR IN AN INTERVIEW IN DECEMBER DENIED EVEN KNOWING MR SHALABI BUT AGENTS FROM THE FBI'S COUNTERTERRORISM SQUAD IN MANHATTAN RECENTLY ADDED A NEW TWIST TO THE INVESTIGATION THEY INTERROGATED SEVERAL BROOKLYN MUSLIMS ABOUT WHETHER A DISPUTE OVER A COUNTERFEITMONEY OPERATION MAY HAVE LED TO MR SHALABI'S DEATH ACCORDING TO PEOPLE WHO KNEW MR SHALABI AS WELL AS A REPORT LAST WEEK IN THE SAUDI ARABIANOWNED ASHARQ ALAWSAT NEWSPAPER IN LONDON MR SHALABI'S ORGANIZATION ONCE OPERATED A COUNTERFEITMONEY PRINTING PRESS INSIDE BROOKLYN'S FAROUK MOSQUE WHERE SHEIK OMAR WOULD LATER PREACH WHEN MOSQUE OFFICERS DISCOVERED THE PRESS MR SHALABI WAS FORCED TO DISASSOCIATE HIS JIHAD OFFICE FROM THE MOSQUE BUT NOBODY SEEMS TO KNOW WHAT HAPPENED TO THE PRINTING PRESS OR ANY OF THE FAKE MONEY IT PRODUCED SOME PEOPLE FAMILIAR WITH THE SITUATION SPECULATE THAT WHOEVER SHOT MR SHALABI THEN RITUALLY KNIFED HIM THEN RANSACKED HIS APARTMENT AS ONE POLICE DETECTIVE DESCRIBED THE MURDER MAY HAVE BEEN LOOKING FOR THE COUNTERFEIT CASH OR MONEYMAKING MATERIALS THOUGH MR SHALABI HAS NEVER BEEN DEFINITIVELY LINKED TO COUNTERFEITING A BROOKLYN ASSOCIATE PALESTINIANBORN ISAM ELDER RECENTLY SERVED ONE YEAR IN FEDERAL PRISON FOR MASTERMINDING A CONTERFEITING RING THAT PRODUCED AT LEAST 15 MILLION OF FAKE CASH ACCORDING TO COURT PAPERS MR ELDER AFTER HIS ARREST IN 1989 IN AN UNDERCOVER STING JUMPED BAIL AND FLED TO PESHAWAR PAKISTAN THE MAIN BASE OF THE ANTISOVIET MUJAHEDEEN AT THE TIME EVENTUALLY HIS LAWYER MICHAEL WARREN OF BROOKLYN WHO ALSO REPRESENTS MESSRS NOSAIR AND ELGABROWNY IN THEIR TROUBLES NEGOTIATED MR ELDER'S SURRENDER TO THE US CONSULATE IN PESHAWAR BUT COURT PAPERS REVEAL THAT AS PART OF HIS PLEA BARGAIN MR ELDER GAVE US SECRET SERVICE AGENTS ONLY SOME OF THE PRINTING PLATES AND OTHER COUNTERFEITING PARAPHERNALIA THAT HE AND HIS ACCOMPLICES USED MANY OF THE PLATES FROM WHICH THE COUNTERFEIT CURRENCY WAS PRINTED ARE STILL APPARENTLY AT LARGE WROTE US ATTORNEY ANDREW MALONEY IN A SENTENCING LETTER LAST YEAR TO US DISTRICT JUDGE I LEO GLASSER IT ISN'T CLEAR IF COUNTERFEITING MATERIALS OR FAKE CASH HAVE PLAYED ANY SUBSEQUENT ROLE IN THE INVESTIGATIONS OF SHEIK OMAR OR ANYONE ELSE BUT AN FBI AGENT SAID COUNTERFEITING HASN'T COME UP IN THE BOMBING INVESTIGATION AS FOR MR ELDER HE IS NOW ON THREE YEARS' PROBATION AND LIVING IN BROOKLYN HE ACKNOWLEDGED IN AN INTERVEIW THAT HE HAD BEEN CLOSE TO MR SHALABI BUT HE SAID MUSTAFA SHALABI WAS A CLEAN MAN DON'T BELIEVE THE STORIES YOU HEAR ABOUT HIM AS FOR HIS OWN CRIME MR ELDER SAID HE GOT CAUGHT BEFORE HE COULD MAKE ANY PROFIT AND HIS PLOT HAD NOTHING TO DO WITH MUSLIM POLITICS I GOT WEAK HE SAID IT WAS THE BIGGEST MISTAKE OF MY LIFE 9303150009 930315 NEW COLOSSUS SMITH BARNEY SHEARSON EMERGES REFLECTING A SHIFTING WALL STREET THE INDUSTRY IS CONSOLIDATING BUT FIRMS TEND TO GO WITH JUST ONE SPECIALTY A RIVAL FOR MERRILL LYNCH BY WILLIAM POWER AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE STRUCTURE OF WALL STREET HAS BEEN SHAKEN TO ITS FOUNDATION THE CREATION OF A NEW BROKERAGE GIANT NAMED SMITH BARNEY SHEARSON WILL FORCE THE REST OF THE SECURITIES INDUSTRY TO ADJUST THE ADJUSTMENT STREET INSIDERS SAY IS LIKELY TO TAKE TWO PATHS THAT MIGHT AT FIRST SEEM SOMEWHAT CONTRADICTORY CONSOLIDATION AND SEGMENTATION ON FRIDAY PRIMERICA CORP PUT SMITH BARNEY SHEARSON TOGETHER BY BUYING AMERICAN EXPRESS CO'S SHEARSON BROKERAGE OPERATION AND MERGING IT WITH PRIMERICA'S SMITH BARNEY HARRIS UPHAM THE RESULT IS A FIRM WITH NEARLY 11000 STOCKBROKERS AND 495 BRANCH OFFICES ALTHOUGH PRIMERICA WILL SHRINK THESE TOTALS THE ACQUISITION CREATES A SECOND BROKERAGE BEHEMOTH ON THE SCALE OF MERRILL LYNCH & CO WITH ITS 11500 BROKERS AND 458 BRANCHES BETWEEN THEM SMITH BARNEY SHEARSON AND MERRILL LYNCH WILL EMPLOY ONE OF EVERY FOUR STOCKBROKERS IN AMERICA THESE TWO NEW MEGAFIRMS BECAUSE OF THE ECONOMIES OF SCALE AVAILABLE TO THEM WILL PUT STRONG COMPETITIVE PRESSURE ON THE SMALLER SECURITIES FIRMS EITHER TO LINE UP MERGER PARTNERS OF THEIR OWN OR TO SETTLE FOR THE ROLE OF NICHE OR BOUTIQUE FIRM AMONG THE FIRMS MOST LIKELY TO BE MERGED OR SOLD ARE GENERAL ELECTRIC CO'S KIDDER PEABODY & CO AND PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC WALL STREET EXECUTIVES SAY WALL STREET IS IN AN ONGOING CONSOLIDATION THAT WILL INCLUDE THE MERGERS OF OTHER MAJOR BROKERAGE FIRMS SAYS WILLIAM DONALDSON CHAIRMAN OF THE NEW YORK STOCK EXCHANGE YOU'RE GOING TO SEE A FOCUS ON MARKET SEGMENTATION YOU'LL HAVE THESE BIG GUYS MERRILL AND SMITH BARNEY SHEARSON AND A COUPLE OF OTHERS AND THEN HAVE THE SMALLER SPECIALTY PEOPLE TO THE EXTENT IT SPURS SPECIALIZATION THE SMITH BARNEYSHEARSON MERGER REFLECTS A WALL STREET THAT IS ENTERING THE 1990S BY RETURNING TO ITS PAST THE SECURITIES BUSINESS INCREASINGLY IS SPLINTERING INTO TWO CAMPS THAT WALL STREET USED TO CALL BRAINS AND BRAWN THE SOCALLED BRAINS ARE BLUECHIP INVESTMENT BANKS AND TRADING POWERHOUSES LIKE GOLDMAN SACHS & CO MORGAN STANLEY GROUP INC AND SALOMON INC THAT PROVIDE STRATEGIC ADVICE AND UNDERWRITE STOCKS AND BONDS FOR CORPORATE CLIENTS TYPICALLY EACH HAS ONLY A FEW HUNDRED BROKERS FOCUSING ON WEALTHY PEOPLE AND INSTITUTIONS WALL STREET'S OTHER CAMP THE BRAWN ENCOMPASSES BIG BROKERAGE HOUSES SELLING STOCKS BONDS AND MUTUAL FUNDS TO MILLIONS OF SMALL INVESTORS NATIONWIDE THESE PRIMARILY RETAIL OPERATIONS INCLUDE PRUDENTIAL SECURITIES SEARS ROEBUCK & CO'S DEAN WITTER DISCOVER & CO AND THE NEW SMITH BARNEY SHEARSON WALL STREET IS MOVING BACK INTO WHAT USED TO BE A RETAIL DISTRIBUTION DIRECT CONTACT WITH THE SMALL INVESTOR ON ONE HAND AND MANUFACTURE OF PRODUCT BY INVESTMENT BANKERS ON THE OTHER HAND SAYS JOHN CHALSTY CHIEF EXECUTIVE OFFICER OF DONALDSON LUFKIN & JENRETTE INC A FIRM ALREADY TIGHTLY FOCUSED ON CORPORATE BUSINESS IT'S MORE LIKE THE WALL STREET WE USED TO KNOW FRANK ZARB WHO HAS BEEN SMITH BARNEY'S CHAIRMAN AND WILL BE CHAIRMAN AND CHIEF EXECUTIVE OF SMITH BARNEY SHEARSON SAYS MOST BROKERAGE FIRMS THAT SURVIVE IN THE 1990S MUST BE HIGHLY FOCUSED AND WORK ONE PART OF THE MARKET SUCH ADVICE HOWEVER IS IGNORED RATHER SUCCESSFULLY BY MERRILL LYNCH A MAJOR FORCE IN ALL ASPECTS OF THE SECURITIES BUSINESS SANFORD I WEILL PRIMERICA'S CHAIRMAN AND THE AUTHOR OF THE MERGER IS CLEARLY GOING THE SMALLINVESTOR ROUTE THE COMBINATION OF SHEARSON'S SALES FORCE AND PRIMERICA'S OWN SMITH BARNEY CREATES A BROKERAGE NETWORK THAT WILL GIVE MERRILL A BATTLE IN THE BUSINESS OF SELLING STOCKS AND MUTUAL FUNDS TO INDIVIDUALS A MUCH STRONGER COMPETITOR THAN BLOATED SHEARSON HAS BEEN WE THINK THAT MONEY IS GOING TO BE LOOKING FOR HOMES MR WEILL SAYS CITING THE EXPLOSIVE GROWTH IN MUTUAL FUNDS NOTING THAT PRIMERICA WITH ITS NEW SMITH BARNEY SHEARSON UNIT WILL HAVE 112 BILLION INVESTED FOR CLIENTS INCLUDING MUTUAL FUNDS IT RUNS HE SAYS WE'RE NOW GOING TO BE A LEADER IN THAT BUSINESS UNLIKE MERRILL LYNCH SMITH BARNEY SHEARSON WILL HAVE ONLY A LIMITED INVESTMENTBANKING CAPABILITY PRIMERICA ISN'T BUYING THE LEHMAN BROTHERS INVESTMENTBANKING PART OF AMERICAN EXPRESS'S SHEARSON LEHMAN BROTHERS IT HAS SIGNED A TWOYEAR AGREEMENT THAT WILL ENABLE SMITH BARNEY SHEARSON BROKERS TO CONTINUE TO SELL NEW STOCK AND BOND ISSUES UNDERWRITTEN BY LEHMAN BROTHERS MR WEILL'S BILLIONDOLLAR BET FOR THE 1990S IS THAT HE CAN MAINTAIN THE FOCUS AND COSTCONSCIOUSNESS OF SMITH BARNEY HARRIS UPHAM'S BROKERAGE BUSINESS BUT ON A MUCH BIGGER SCALE WHAT SANDY IS SAYING BY THE SHEARSON PURCHASE IS THAT SCALE AND SIZE ARE ABSOLUTELY NECESSARY TO COMPETE IN THE '90S SAYS M WILLIAM BENEDETTO OF BENEDETTO GARTLAND & GREENE INC A NEW YORK INVESTMENT BANK INDIVIDUAL INVESTORS COULD EVENTUALLY BENEFIT FROM THE WAVE OF CHANGE ON WALL STREET WITH SMITH BARNEY SHEARSON AND MERRILL ENJOYING UNPARALLELED ECONOMIES OF SCALE THEY MIGHT START SLASHING CUSTOMER ACCOUNT FEES AND TRADING COMMISSIONS IN A BID TO SQUEEZE SECOND AND THIRDTIER FIRMS EXECUTIVES SPECULATE MICHAEL LIPPER PRESIDENT OF LIPPER ANALYTICAL SECURITIES CORP THINKS THE SHEARSON SALE IS GOING TO CREATE A PRICE WAR AN EXPENSE WAR AND A SERVICE WAR ON WALL STREET IF THAT SHOULD HAPPEN THE RESULT WOULD BE MORE PRESSURE ON SMALLER PLAYERS ALREADY WALL STREET CHIEF EXECUTIVES ARE SENDING OUT FEELERS ABOUT ACQUIRING PARTS OF OTHER BROKERAGE FIRMS THAT LIKE SHEARSON HAVE BEEN STRUGGLING WITH FARFLUNG OPERATIONS THAT PERHAPS COULD BE RUN BETTER IF SPLIT UP THERE CLEARLY ARE PEOPLE WHOSE INTEREST IN THE KIDDERS AND THE PRUS IS REVIVED BY THIS SAYS ONE WALL STREET CEO REFERRING TO KIDDER PEABODY AND PRUDENTIAL SECURITIES LAST YEAR PRIMERICA DISCUSSED BUYING KIDDER'S BROKERAGE OPERATIONS BUT NO DEAL WAS STRUCK FIRMS LIKE THESE WILL STICK OUT LIKE SORE THUMBS EXPOSED TO CRUNCHING COMPETITIVE PRESSURES WARNS SAMUEL HAYES PROFESSOR OF INVESTMENT BANKING AT HARVARD BUSINESS SCHOOL PRUDENTIAL INSURANCE CHAIRMAN ROBERT WINTERS SAYS HIS FIRM HAS NO PLANS TO SPEAK OF TO SELL OR SPIN OFF PRUDENTIAL SECURITIES MANY ON WALL STREET ARE UNSURE WHERE KIDDER PEABODY FITS IN WITH ITS LIMITED BROKERAGE NETWORK CATERING TO WEALTHY INVESTORS BUT LACK OF CLOUT IN TRADING KIDDER ARGUES THAT IT IS A PLAYER IN A VARIETY OF PROFITABLE BUSINESSES FROM JUNK BONDS TO PRIVATE PLACEMENTS AND THAT ITS BROKERS ARE AS PRODUCTIVE AS THEY COME SAYS THE FIRM'S CHAIRMAN MICHAEL CARPENTER WE HAVE A NICHEORIENTED STRATEGY WITHIN THE CONTEXT OF A FULLLINE FIRM HE ADDS WE HAVEN'T BEEN OUT TRYING TO SELL THE COMPANY GE IS NOT OUT TO SELL THE COMPANY KIDDER IS NOT FOR SALE A HANDFUL OF SECURITIES FIRMS COULD GO PUBLIC ON THEIR OWN INDUSTRY OBSERVERS SAY IN THE BELIEF THEY CAN SURVIVE BETTER INDEPENDENTLY THAN AS PART OF BIG PARENT COMPANIES AT THE TOP OF THAT LIST IS LEHMAN BROTHERS INC SHEARSON'S FORMER INVESTMENTBANKING AND TRADING DIVISION WHICH REMAINS WITH AMERICAN EXPRESS A PUBLIC OFFERING BY LEHMAN IS A FEASIBLE OPTION ONCE THE UNIT'S EARNINGS INCREASE AMERICAN EXPRESS CHIEF EXECUTIVE HARVEY GOLUB SAID FRIDAY WHY IS THE WALL STREET SHAKEUP HAPPENING NOW AFTER ALL THE BUSINESS IS BASKING IN A SECOND STRAIGHT YEAR OF RECORD PROFITS THANKS TO BULL MARKETS IN BOTH STOCKS AND BONDS THE HEADS OF SOME BIG FIRMS ARE GETTING PAY PACKAGES OF 8 MILLION A YEAR OR MORE BUT THIS WINDFALL HAS MASKED UNDERLYING PROBLEMS WALL STREET WHICH HAS NEVER BEEN A PARTICULARLY WELLMANAGED INDUSTRY FACES INCREASED GLOBAL COMPETITION FOR THE SERVICES IT PROVIDES BANKS ARE SLOWLY ENCROACHING ON ITS CORPORATE BUSINESS EVEN NOSING IN ON THE HALLOWED BUSINESS OF UNDERWRITING STOCKS MUTUAL FUNDS ARE PICKING OFF SMALLINVESTOR DOLLARS AND THE BUZZWORD OF THE 1980S FREESPENDING FINANCIAL SUPERMARKETS THAT WOULD OFFER COMPREHENSIVE FINANCIAL SERVICES UNDER ONE ROOF HAVE PROVEN A BUST FOR COMPANIES AS VARIED AS AMERICAN EXPRESS GE PRUDENTIAL INSURANCE AND SEARS ROEBUCK WHICH RECENTLY SOLD 20 OF ITS DEAN WITTER UNIT TO THE PUBLIC SO WALL STREET NEEDS TO FIND NEW WAYS TO FEND OFF COMPETITION FOR INVESTORS' DOLLARS EVERYONE'S GOING AFTER THOSE RETAIL ASSETS RIGHT NOW WALL STREET NEEDS TO RENEW ITSELF AND REINVENT ITSELF TO COMPETE SAYS JEANLOUIS LELOGEAIS A PARTNER AT CONSULTANTS BOOZALLEN & HAMILTON INC ONLY TWO YEARS AGO WALL STREET WAS PRIMED FOR JUST SUCH A SHAKEOUT FOLLOWING THE 1990 COLLAPSE OF DREXEL BURNHAM LAMBERT INC FOUR MAJOR WALL STREET FIRMS PRUDENTIAL SECURITIES KIDDER FIRST BOSTON AND SHEARSON WERE NEARLY CRIPPLED BY SEVERE FINANCIAL CRUNCHES BUT EACH HAD A DEEPPOCKETED PARENT TO BAIL IT OUT AND LATER THE MARKETS RALLIED STRONGLY ALLOWING WALL STREET TO PUT OFF MAKING HARD CHOICES THERE WAS A STAY OF EXECUTION SAYS FRANK BAXTER CHIEF EXECUTIVE OF JEFFERIES GROUP INC A LOS ANGELES SECURITIES FIRM NOW THERE'S A RESUMPTION OF THAT PRESSURE TO CONSOLIDATE IT MAY JUST BE A MATTER OF TIME AT PAINEWEBBER GROUP A FIRM THAT HAS CONSISTENTLY DENIED BEING A TAKEOVER CANDIDATE ITSELF BROKERAGE CHIEF JOSEPH GRANO OBSERVES THAT TO COMPETE IN THE '90S NOW MANY FIRMS ARE GOING TO BE FORCED INTO NICHES OR THEY'LL HAVE TO MERGE THUS MANY ARE EXPECTED TO FOCUS ON THEIR BEST BUSINESSES WHILE MAKING INCREASED USE OF JOINT VENTURES WITH COMPETITORS WHEN THEY NEED HELP MR WEILL IN EFFECT CAN RENT OUT HIS HUGE SALES FORCE TO INVESTMENT BANKS THAT NEED TO SELL BIG STOCK OFFERINGS ALREADY MANY INVESTMENT BANKS ARE TEAMING UP MORE THAN BEFORE TO COMPLETE DIFFICULT TRANSACTIONS BOND TRADERS HAVE NOTICED IN RECENT MONTHS FOR EXAMPLE THAT MANY OFFERINGS OF HIGHYIELD JUNK BONDS HAVE BEEN COMANAGED BY COMPETING FIRMS RATHER THAN DOMINATED BY ONE IT IS CERTAINLY DIFFERENT FROM THE MID1980S WHEN DREXEL WAS ABLE TO RUN THE JUNKBOND MARKET VIRTUALLY BY ITSELF BOOZALLEN'S MR LELOGEAIS SEES A STRONG LOGIC FOR WALL STREET FIRMS TO MERGE THEIR TRADEPROCESSING OPERATIONS AND TO LAUNCH JOINT SALES VENTURES WITH OTHER FIRMS HE EXPECTS MORE ALLIANCES LIKE DEAN WITTER'S RECENT AGREEMENT TO TEAM WITH THE COMMERCIAL BANK NATIONSBANK TO SELL STOCKS AT BANK BRANCHES THE CONSULTANT BELIEVES SECURITIES FIRMS IN THE PAST HAVE BEEN TOO FIXATED ON DEVELOPING THEIR OWN INTERNAL LINKAGES BETWEEN INVESTMENT BANKING AND RETAIL BROKERAGE IN ALL THIS SPECIALIZATION MERRILL LYNCH REMAINS THE OUTSTANDING EXCEPTION CONTINUING TO OPERATE IN ALL ASPECTS OF THE SECURITIES BUSINESS BESIDES ITS BROKERAGE CLOUT MERRILL LYNCH HAS BEEN RANKED NO 1 FOR FIVE STRAIGHT YEARS AMONG WALL STREET FIRMS THAT UNDERWRITE STOCKS AND BONDS ITS OFFICIALS SAY THEY HAVE NO QUALMS ABOUT COMPETING BOTH WITH THE BROKER ARMY ASSEMBLED BY MR WEILL AND WITH POWERFUL INVESTMENT BANKS I HAPPEN TO HAVE COPIES OF ALL THE THINGS WRITTEN ABOUT US WHEN SHEARSON AND HUTTON WAS NO 1 AND WHAT A TERRIBLE THREAT THAT WOULD BE SAYS JOHN L STEFFENS HEAD OF MERRILL LYNCH'S BROKERAGE OPERATIONS REFERRING TO SHEARSON'S 1987 COMBINATION WITH EF HUTTON & CO WHILE HE PRAISES MR WEILL'S TRACK RECORD IN MERGING BROKERAGE FIRMS THE FACT IS HE'S DONE THEM ON A LITTLE SMALLER SCALE AND FRANKLY THIS MIGHT NOT BE AS SIMPLE AS THOSE MR STEFFENS SAYS MEANWHILE HE ADDS WE THINK IN THE INTERIM PERIOD WE'RE IN A GOOD POSITION TO PUT TOGETHER MERRILL'S NEW RIVAL PRIMERICA AGREED TO GIVE AMERICAN EXPRESS 850 MILLION IN CASH 125 MILLION IN PRIMERICA CONVERTIBLE PREFERRED STOCK AND 25 MILLION IN PRIMERICA COMMONSTOCK WARRANTS ADDING UP TO 1 BILLION PRIMERICA ALSO AGREED TO PAY AMERICAN EXPRESS A PERCENTAGE OF SMITH BARNEY SHEARSON'S FUTURE EARNINGS AS MUCH AS A TOTAL OF 150 MILLION OVER THREE YEARS PLUS 10 OF NET INCOME ABOVE 250 MILLION A YEAR FOR FIVE YEARS THESE PROVISIONS BRING THE TRANSACTION'S VALUE TO ABOUT 115 BILLION IT STILL NEEDS THE APPROVAL OF REGULATORS AND THE NEW YORK STOCK EXCHANGE BUT IS EXPECTED TO BE COMPLETED BY EARLY JULY PRIMERICA PLANS TO FUND THE CASH PART OF THE SALE AND STRENGTHEN SMITH BARNEY'S CAPITAL BASE BY ISSUING TO THE PUBLIC 550 MILLION IN NEW DEBT SECURITIES AND ABOUT 500 MILLION IN A STOCKEQUIVALENT SECURITY THE 125 MILLION OF CONVERTIBLE PREFERRED TO BE ISSUED TO AMERICAN EXPRESS YIELDS 55 AND IS CONVERTIBLE INTO 255 MILLION SHARES OF PRIMERICA COMMON AT 49 A SHARE PRIMERICA'S SHARES CLOSED AT 4950 A SHARE FRIDAY IN BIG BOARD TRADING FOR A 24 SURGE SINCE THE SHEARSON TALKS WERE DISCLOSED IN THE WALL STREET JOURNAL TUESDAY BESIDES MR ZARB AS CHAIRMAN AND CEO OF SMITH BARNEY SHEARSON MR WEILL APPOINTED JOSEPH PLUMERI THE FORMER HEAD OF SHEARSON'S BROKERAGE OPERATIONS AND A MAN HIRED BY MR WEILL AT A SHEARSON PREDECESSOR FIRM IN 1967 AS PRESIDENT THUS HE HAS PUT FORMER SHEARSON OR LEHMAN BROTHERS EXECUTIVES IN NEARLY EVERY MAJOR SENIOR MANAGEMENT POSITION AT THE NEWLY HATCHED FIRM AMONG THE OTHERS SMITH BARNEY VICE CHAIRMAN JEFFREY LANE WHO RUNS ASSET MANAGEMENT AND INSTITUTIONAL COMMODITIES LEWIS GLUCKSMAN WHO RUNS CORPORATE FINANCE AND ROBERT DRUSKIN WHO RUNS ADMINISTRATION AND SYSTEMS ALL HAD THESE JOBS AT SMITH BARNEY AND ARE KEEPING THEM AT THE MERGED FIRM MR ZARB BRUSHES ASIDE SUGGESTIONS OF DIFFICULTY IN DIGESTING SHEARSON'S HUGE BROKERAGE OPERATIONS AS SHEARSON HAD IN ABSORBING HUTTON AFTER THE 1987 STOCKMARKET CRASH YOU'LL SEE A MORE EFFICIENT PREARRANGED EXPEDITED DECISIVE EXECUTION HERE MR ZARB SAYS UNCERTAINTY IS THE ENEMY IN THESE THINGS AND THERE WON'T BE ANY OF THAT HERE THE NEW FIRM IS LIKELY TO MOVE ITS BACK OFFICE OPERATIONS INTO SHEARSON'S MAMMOTH DOWNTOWN MANHATTAN OPERATIONS HEADQUARTERS SHEARSON'S TECHNOLOGY IS ABOUT 10 YEARS AHEAD OF OURS SAYS MR ZARB PRIMERICA WILL CLOSE ONLY 15 TO 20 BRANCHES AND DISMISS PERHAPS 1000 OF SMITH BARNEY SHEARSON'S 26500 EMPLOYEES PEOPLE FAMILIAR WITH THE PLANS SAY MOST OF THE DISMISSALS ARE LIKELY TO BE IN THE TRADEPROCESSING AND ADMINISTRATIVE AREAS YOU DON'T TAKE A FILLED OFFICE THAT'S VERY PRODUCTIVE AND DO ANYTHING WITH IT MR ZARB SAYS IN A CONFERENCE CALL TO SHEARSON'S 8500 BROKERS FRIDAY AFTERNOON THE BLUNTTALKING MR PLUMERI PLAYED DOWN TALK OF HUGE LAYOFFS AND BRANCH CLOSINGS I'M NOT GOING TO BOMB ANYTHING HE ASSURED THE BROKERS LISTENING IN THERE'S NOTHING DIFFERENT ABOUT THIS FIRM TODAY THAN IT WAS A WEEK AGO HE SAID EXCEPT WE DON'T HAVE ANY BAGGAGE ANYMORE SECURITIES FIRMS GROUPED BY PRIMARY BUSINESS FOCUS WITH TOTAL 1992 REVENUE IN BILLIONS OF DOLLARS PRIMERICA CORP'S PURCHASE OF SHEARSON'S BROKERAGE OPERATIONS RANKS AS THE BIGGEST ACQUISITION IN THE SECURITIES INDUSTRY GRANTED TO AMERICAN EXPRESS OVER THREE YEARS 9303150008 930315 POLITICS & POLICY LEVITT HELPED RAISE 35 MILLION DURING CLINTON CAMPAIGN BY CHRISTI HARLAN AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ARTHUR LEVITT JR THE CLINTON ADMINISTRATION'S CURRENT FAVORITE FOR THE CHAIRMANSHIP OF THE SECURITIES AND EXCHANGE COMMISSION HELPED RAISE 35 MILLION FOR PRESIDENT CLINTON'S CAMPAIGN AT THE INVITATION OF ROBERT RUBIN NOW NATIONAL ECONOMIC ADVISER MR LEVITT WAS ONE OF 10 OR 12 COCHAIRMEN OF A FUNDRAISING DINNER HELD LAST FALL IN MANHATTAN THENCANDIDATE CLINTON SPOKE AT THE DINNER UNTIL MR LEVITT'S NAME SURFACED LAST WEEK AS THE FRONTRUNNER FOR THE TOP SEC JOB THE FORMER CHAIRMAN OF THE AMERICAN STOCK EXCHANGE HAD MAINTAINED A LOW PROFILE IN DEMOCRATIC POLITICS AND IN FACT SERVED BOTH REPUBLICAN AND DEMOCRATIC PRESIDENTS ON BOARDS AND COMMISSIONS CLINTON ADMINISTRATION OFFICIALS LAST WEEK INDICATED THEIR PREFERENCE FOR MR LEVITT OVER CONSUELA WASHINGTON TOP AIDE TO REP JOHN DINGELL THE POWERFUL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE THE APPARENT ANOINTING OF MR LEVITT PUTS MR DINGELL IN AN AWKWARD POSITION THE MICHIGAN DEMOCRAT STRONGLY BACKS MS WASHINGTON FOR THE SEC CHAIRMANSHIP BUT AT THE SAME TIME IS A FRIEND OF MR LEVITT AND WOULD BE HESITANT TO TRY TO BLOCK HIS CANDIDACY MR DINGELL HASN'T CRITICIZED MR LEVITT BUT IS SAID TO BE CONCERNED THAT AN INDUSTRY INSIDER SUCH AS THE FORMER AMEX CHAIRMAN WOULD TAKE THE HELM AT THE SEC FOR HIS PART MR LEVITT DESCRIBES REP DINGELL AS ONE OF HIS BETTER FRIENDS MR LEVITT SAID I REGARD HIM WITH THE HIGHEST RESPECT OF ANY POLITICIAN I KNOW AN ADMINISTRATION OFFICIAL SAID THE WHITE HOUSE WAS MINDFUL OF THE TWO MEN'S FRIENDSHIP AND BY PICKING MR LEVITT AIMED TO DISCOURAGE MR DINGELL FROM OPPOSING A CANDIDATE OTHER THAN MS WASHINGTON MR LEVITT'S 6000 IN CONTRIBUTIONS TO CONGRESSIONAL CANDIDATES IN THE LAST ELECTION CYCLE INCLUDED A DONATION TO MR DINGELL IN THE PRESIDENTIAL CAMPAIGN MR LEVITT WAS NOT AN EARLY SUPPORTER OF MR CLINTON AND FRIENDS SAID HE MAY HAVE STAYED NEUTRAL THROUGH MUCH OF THE PRIMARY EFFORT HOWEVER MR LEVITT WAS SAID TO BE THE MAJOR SPONSOR OF THE NEW YORK FUNDRAISER DRAWING ON THE LARGESS OF FRIENDS AND BUSINESS ASSOCIATES FROM ACROSS THE COUNTRY THE NEW YORK DINNER TURNED OUT TO BE ONE OF THE MOST LUCRATIVE EVENTS FOR THE DEMOCRATIC PARTY'S GENERALELECTION COFFERS NEVERTHELESS WILLIAM CUNNINGHAM A DEMOCRATIC CONSULTANT IN NEW YORK SAID THAT MR LEVITT ISN'T KNOWN AS A MAJOR FUNDRAISER OR POLITICAL FIGURE IN THE STATE HIS NAME POPPED UP ON MY LIST MR CUNNINGHAM SAID RECALLING A FUNDRAISING EFFORT IN 1974 I TOLD HIM I WAS RAISING MONEY FOR A DEMOCRATIC TELETHON AND WOULD HE MAKE A DONATION AND HE SAID NO' HE SAID THAT HIS FATHER RAN FOR OFFICE AND THAT WAS THEIR CONTRIBUTION ARTHUR LEVITT SR WAS STATE COMPTROLLER IN NEW YORK FOR 24 YEARS FROM 1955 THROUGH 1978 THE SENIOR MR LEVITT HOLDS THE RECORD FOR THE MOST VOTES EVER GARNERED BY A NEW YORK STATE POLITICIAN A STATE OFFICE BUILDING IN MANHATTAN IS NAMED FOR HIM THE YOUNGER MR LEVITT HAS ESCHEWED POLITICAL RACES OF HIS OWN TURNING DOWN A REQUEST SIX YEARS AGO TO CHALLENGE NEW YORK SEN ALFONSE D'AMATO INSTEAD MR LEVITT HAS ADOPTED LESSTAXING POLITICAL ROLES SERVING ON ADVISORY PANELS UNDER PRESIDENTS CARTER REAGAN AND BUSH ON SUCH TOPICS AS SMALL BUSINESS PRIVATESECTOR INITIATIVES AND MILITARY BASECLOSINGS IN WASHINGTON HIS OWNERSHIP OF ROLL CALL A TWICEAWEEK NEWSPAPER HAS KEPT HIM IN TOUCH WITH ITS CAPITOL HILL AUDIENCE UNTIL LAST WEEK MR LEVITT'S CLOSEST BRUSH WITH HIGHPROFILE GOVERNMENT SERVICE CAME DURING THE REAGAN ADMINISTRATION WHEN HE WAS BRIEFLY CONSIDERED FOR THE CHAIRMANSHIP OF THE SEC 9303150007 930315 BUSINESS BRIEF SMITH CORONA CORP FISCAL THIRDPERIOD RESULTS WILL DECLINE SUBSTANTIALLY' SMITH CORONA CORP NEW CANAAN CONN SAID IT EXPECTS FISCAL THIRDQUARTER RESULTS TO BE SUBSTANTIALLY BELOW A YEAR EARLIER BECAUSE SALES HAVE FALLEN OFF THE PACE OF THE END OF ITS SECOND QUARTER IN THE QUARTER ENDED LAST MARCH 31 SMITH CORONA HAD NET INCOME OF 49 MILLION OR 16 CENTS A SHARE ON SALES OF 865 MILLION THE ELECTRONICTYPEWRITER AND WORDPROCESSOR MAKER SAID IT EXPECTS BETTER THAN BREAKEVEN RESULTS FOR THE CURRENT QUARTER THE COMPANY BLAMED A LACKLUSTER ECONOMIC RECOVERY IN THE US AND A CONTINUING SEVERE RECESSIONARY CLIMATE IN EUROPE FOR THE SLOWDOWN IN SALES G LEE THOMPSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID ALTHOUGH RETAIL INVENTORIES REMAIN RELATIVELY LOW OUR SALES DO NOT REFLECT AN IMPROVEMENT IN ORDERS WHICH WE HOPED WOULD OCCUR IN ADDITION COMPETITIVE PRICE CUTS PARTICULARLY IN THE LOWEND MODELS HAVE RECENTLY RESURFACED AND EXACERBATE THE COMPETITIVE SITUATION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY SMITH CORONA SHARES PLUNGED 625 CENTS TO 625 9303150006 930315 REVIEW & OUTLOOK EDITORIAL DEMOCRATIC HAWKS DISCOVERED TALK ABOUT WHAT GOES AROUND COMES AROUND BEHOLD CALIFORNIA'S DEMOCRATS WHO ARE SHOCKED SHOCKED TO FIND SEVERAL BIG MILITARY BASES IN THEIR STATE TARGETED FOR SHUTDOWN THE RESULT OF THE PENTAGON DOWNSIZING THAT THEY HAVE SO ARDENTLY CHAMPIONED OH SUCH TERRIBLE ANGUISH LOCAL MAYORS SUPERVISORS AND ECONOMIC TALKING HEADS THE PEOPLE WHO FOR YEARS SAID IT WAS IMPORTANT TO DIVERT FUNDS FROM THE DEFENSE DEPARTMENT TO UNMET' CIVILIAN NEEDS ARE SQUAWKING THEY LOOOVE THEIR BASES DOWN TO THE LAST PX AND BERATE SOME OF THEIR REPUBLICAN CONGRESSMEN WHO WANTED TO CONSIDER THE STRATEGIC MERITS OF THE CLOSURES BEFORE RAISING HOLY HELL THIS KIND OF THING IS GOING ON ALL OVER THE COUNTRY BUT THE IRONIES IN CALIFORNIA ARE ESPECIALLY DELICIOUS HERE WE HAVE BARBARA BOXER RON DELLUMS VIC FAZIO AND WILLIE BROWN WHO MAY HAVE SUPPORTED JUST ENOUGH PENTAGON REQUESTS TO ARM A DECENTSIZED COAST GUARD SUDDENLY THEY'RE A FIERY PLATOON SCREAMING ABOUT THE MILITARY'S HAMFISTED CUTS THEIR STATE'S ECONOMIC BLUES WHICH THEY HAVE DONE PLENTY TO BRING ABOUT ARE SUPPOSED TO BE A TOP CRITERION IN DESIGNING THE US'S FORCE STRUCTURE OF COURSE THIS CONCERN DOESN'T EXTEND TO OUTLAYS FOR THE STRATEGIC DEFENSE INITIATIVE WHICH ACTUALLY PUMPS MORE MONEY INTO CALIFORNIA THAN ANY OF ITS MILITARY BASES A MISSILE SHIELD WHO CARES ABOUT THAT CUT AWAY AFTER ALL SDI IS SPREAD OUT OVER HUNDREDS OF TAXPAYING CONTRACTORS NEFARIOUS FOLKS WHO DON'T OFFER THE POLS ANY SORT OF OBVIOUS PUBLIC BENEFIT THE CALIFORNIA CLAMOR HASN'T BEEN LIMITED TO DEMOCRATS OF COURSE REPUBLICANS HAVE CHIMED IN FROM THE GOVERNOR ON DOWN BUT WHERE THE GOP HAS HELD ITS FIRE THE PRESS LAUNCHERS OF HUNDREDS OF WASTE FRAUD AND ABUSE STORIES HAS NAPALMED THE CLOSURES WITH CRITICISM TAKE ORANGE COUNTY WHERE TARGETED EL TORO MARINE AIR STATION SITS AMID EXPENSIVE HOMES WHOSE RESIDENTS COMPLAIN OF THE NOISE AND NEAR A MAJOR COMMERCIAL AIRPORT THESE FACTORS RESTRICT ITS USE TO THE POINT WHERE THE BRASS FINALLY AND WISELY WE SUSPECT OPTED TO SHUT IT WHEN THE AREA'S CONGRESSMAN CHRISTOPHER COX AND HIS COLLEAGUES FROM ORANGE COUNTY WAITED ON INFORMATION FROM THE CONFUSED AND PERHAPS SLIGHTLY PARTISAN OFFICE OF DEFENSE SECRETARY LES ASPIN THE LOCAL ESTABLISHMENT ROARED WHY AREN'T YOU BUSY LOBBYING LIKE BOXER AND FAZIO WHAT MR COX HAS BEEN ABLE TO FIND OUT SINCE IS THAT THE THIRD AIR WING WHICH IS STATIONED AT EL TORO IS EXPECTED TO EMERGE FROM A SERIES OF SITING TRANSFERS WITH AN ENHANCED CAPABILITY CENTERED AT THE MIRAMAR AIR BASE IN SAN DIEGO COUNTY THE CONGRESSMAN ISN'T CONVINCED YET THE ONLY THING HE KNOWS FOR SURE IS THAT IT WOULD HAVE BEEN EASIER AND MORE POLITICALLY ADVANTAGEOUS SIMPLY TO BE PRO PORK THAN TO STUDY THE ISSUE THE SQUEAKY WHEELS OF NORTHERN CALIFORNIA MANAGED TO SAVE MCCLELLAN AIR FORCE BASE AT SACRAMENTO TO SAVE THE SEAT OF REP FAZIO AND THE MONTEREY PRESIDIO STEVE HORN A FRESHMAN HOUSE REPUBLICAN WHO VOTES LIKE A DEMOCRAT WON A REPRIEVE FOR HIS DISTRICT'S LONG BEACH NAVAL SHIPYARD THE RESCUE OPERATION WAS TOO LATE TO SPARE SEVERAL FACILITIES IN GENERAL DELLUMS'S NEIGHBORHOOD BUT THE NEW CHAIRMAN OF THE ARMED SERVICES COMMITTEE LET IT BE KNOWN HE'LL HAVE MORE TO SAY ABOUT IT IF OUT OF ALL OF THIS THE US EMERGES STRONGER THAN IT WOULD BE IF MEMBERS OF CONGRESS EXERCISED THEIR USUAL UNDILUTED POWER THE WISDOM OF THE BASECLOSURE ACT THAT REP DICK ARMEY AND A FEW OTHERS GOT INTO LAW IN THE 1980S WILL BE SHOWN AGAIN FOR NOW WHAT'S MOST APPARENT IS THE OUTRAGEOUS HYPOCRISY OF MANY OF THE CALIFORNIANS AND OTHERS WHO CLAIM THE MANTLE OF CHANGE IN THE 1990S 9303150005 930315 LETTERS TO THE EDITOR GOVERNMENT GARDENS USUALLY GO TO SEED ROBERT S MCELVAINE'S IDEA OF ECONOCULTURE GROWING' THE ECONOMY IS A FERTILE IDEA COUNTERPOINT OPED PAGE FEB 25 IS DISTURBING WHEN TAKEN IN THE CONTEXT OF HIS ARTICLE THAT LIKE INDIVIDUAL HUMAN INTERVENTION IN FARMING THE GOVERNMENT OUGHT TO INTERVENE FURTHER INTO THE ECONOMY FOR SIMILAR BENEFITS MR MCELVAINE'S CASE SEEMS TO HAVE BEEN BASED ON THE IDEA THAT AS FARMERS DO NOT LEAVE THEIR CROPS TO THE MERCIES OF NATURE NEITHER OUGHT WE LEAVE OUR ECONOMIES TO THE INTRANSITIVE MERCIES OF THE MARKETPLACE THIS I BELIEVE IS A SORELY MIXED METAPHOR THERE ARE NO MYSTICAL FORCES INVOLVED IN THE FREE MARKET AS MR MCELVAINE WOULD HAVE US BELIEVE ADAM SMITH'S INVISIBLE HAND WAS A METAPHOR REGARDING THE ABILITY OF MEN THROUGH MARKETS TO ADAPT AND RESPOND TO SUPPLY AND DEMAND WITHOUT THE DIRECTION OF CENTRAL CONTROL BY NATURE MAN GENERALLY RESPONDS TO PHENOMENA IN WAYS THAT INCREASE HIS WELLBEING LIKE THE HEALTHIEST GARDENS THOSE WHICH ARE ORGANICALLY GROWN MAN ALSO DEVELOPS HIMSELF MOST FRUITFULLY WHEN LEFT IN A HEALTHY ENVIRONMENT WITHOUT STEROID INFUSIONS OF GOVERNMENT SUPPORT MAO TSETUNG'S AND STALIN'S FARMING METHODS SEEM TO BESPEAK BEST THE TRANSITIVE NATURE OF GOVERNMENT GROWTHMASS FAMINE IN THE US WHERE MR MCELVAINE SEES THAT THE CLINTON ECONOMIC PLAN INVOLVES MODEST FERTILIZATION COMBINED WITH SELECTIVE PRUNING I HAVE YET TO MEET A GOVERNMENT WITH TOO MUCH OF THE FORMER AND NOT ENOUGH OF THE LATTER MR MCELVAINE'S VISION WILL LEAD US BACK TO A MORE AGRICULTURAL SOCIETYSERFDOM MR MCELVAINE MAY HAVE A THEORETICAL AND GRAMMATICAL POINT THAT IT MAY INDEED BE POSSIBLE FOR PRACTITIONERS OF SOPHISTICATED ECONOMIC HUSBANDRY TO GROW THE ECONOMY BUT JUST WHO ARE THE BREEDERS AND FARMERS AND WHO ARE THE HUNTERGATHERERS AND WHO DO WE FIND IN THE CLINTON ADMINISTRATION SMALLBUSINESS PEOPLE INVENTORS ENTREPRENEURS INDUSTRIALISTS CAPTAINS OF INDUSTRY REAL FARMERS OR RANCHERS THOSE WHO PRODUCE THE RAW MATERIALS THE WIDGETS THE FOOD AND THE ENERGY THAT ARE THE SOURCE OF OUR WEALTH AND JOBS NO WE FIND LAWYERS PROFESSORS AND CONSULTANTS BUT PRIMARILY LAWYERS HOW MANY IN THE CURRENT ADMINISTRATION FROM BILL AND HILLARY ON DOWN HAVE EVER MADE A REAL PRODUCT OR CREATED ANY NEW HIGHPAYING HIGHTECH JOBS THE THRUST OF THE NEW ADMINISTRATION HAS BEEN TO TAX AND PENALIZE THOSE WHO BREED AND FARM TO HUNT AND GATHER THE FRUIT OF OTHER PEOPLES' BROWS A SYSTEMATIC POLICY OF CLASS WARFARE IS THEREBY BEING ENGENDERED 9303150004 930315 LOPEZ REVERSES PLAN TO QUIT GM FOR VOLKSWAGEN WEEKEND TUGOFWAR GETS COSTCUTTER NEW POST MORE RESPONSIBILITIES BY PAUL INGRASSIA AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP SAID J IGNACIO LOPEZ DE ARRIORTUA THE CONTROVERSIAL PURCHASING CZAR WHO QUIT LAST THURSDAY WILL BE STAYING WITH THE COMPANY AFTER ALL INSTEAD OF JUMPING TO VOLKSWAGEN AG IT'S UNDERSTOOD THAT MR LOPEZ 52 YEARS OLD WAS LURED BACK TO GM FOR THE SECOND TIME IN A MONTH WITH A PROMOTION TO EXECUTIVE VICE PRESIDENT AND RESPONSIBILITY FOR ALL OF GM'S NORTH AMERICAN AUTO OPERATIONS I CAN CONFIRM THAT MR LOPEZ WILL STAY WITH GENERAL MOTORS COMPANY SPOKESMAN JAMES W CRELLIN SAID YESTERDAY HE PROMISED MORE DETAILS AT A NEWS CONFERENCE TODAY GM'S STATEMENT YESTERDAY FOLLOWED A DRAMATIC HIGHLEVEL TUGOFWAR FRIDAY AND SATURDAY BETWEEN THE US AUTO MAKER AND VOLKSWAGEN OF GERMANY VW WAS PREPARING TO NAME MR LOPEZ HEAD OF WORLDWIDE PRODUCTION AND A MEMBER OF ITS MANAGING BOARD TOMORROW BUT FRIDAY IT'S UNDERSTOOD GM WEIGHED IN WITH A BIG COUNTEROFFER JUST A DAY AFTER GM PRESIDENT JOHN F SMITH JR HAD ANNOUNCED MR LOPEZ'S DEPARTURE GM OFFICIALS WORRY THE FLIPFLOP WILL TARNISH MR SMITH'S REPUTATION AS A DECISIVE COMMONSENSE EXECUTIVE BUT THEY NOTE THAT MR SMITH ATTACHES THE HIGHEST URGENCY TO MR LOPEZ'S AGGRESSIVE EFFORTS TO CUT COSTS WHICH NOW WILL CONTINUE IN A BROADER ARENA THAN PURCHASING ALONE THE DEVELOPMENTS PROMPTED AN ANGRY STATEMENT LATE SATURDAY FROM VW CHAIRMAN FERDINAND PIECH SAYING THAT MR LOPEZ'S ARRIVAL WOULD BE DELAYED BECAUSE OF CONTINUING INTERVENTION FROM GENERAL MOTORS YESTERDAY A VOLKSWAGEN SPOKESMAN SAID MR LOPEZ TOLD MR PIECH THAT HE COULDN'T WITHSTAND THE PRESSURE FROM HIS GM COLLEAGUES TO REMAIN AT THE US COMPANY VW SPOKESMAN OTTO F WACHS EMPHASIZED HOWEVER THAT MR LOPEZ HAS SIGNED A CONTRACT TO JOIN VOLKSWAGEN AND THAT IT'S PREMATURE TO SAY WHAT HIS ULTIMATE DECISION WILL BE MR WACHS SAID THAT WHILE MR LOPEZ WILL STAY AT GM FOR NOW HE HAS AGREED TO FURTHER DISCUSS COMING TO VOLKSWAGEN BUT MR CRELLIN SAID MY UNDERSTANDING IS THAT HE'S STAYING WITH GM PERIOD THE WEEKEND'S BIZARRE DEVELOPMENTS ARE PART OF A PATTERN ASSOCIATED WITH THE COLORFUL AND CONTROVERSIAL SPANIARD EVER SINCE HE MOVED TO DETROIT A YEAR AGO AT THE BEHEST OF GM'S THENNEW PRESIDENT MR SMITH AFTER SHARPLY CUTTING GM'S PURCHASING COSTS IN EUROPE WHERE HE WORKED UNDER MR SMITH MR LOPEZ WAS ASKED TO DO THE SAME THING FOR GM'S OPERATIONS IN NORTH AMERICA AND AROUND THE WORLD HE IMMEDIATELY DEMANDED THAT US PARTS SUPPLIERS AGREE TO DOUBLEDIGIT PRICE CUTS AND CONDUCTED INTENSIVE WORKSHOPS TO SHOW PARTS MAKERS HOW TO REDUCE THEIR COSTS HE WARNED ABOUT THE DECLINE OF AMERICAN CIVILIZATION AND CASTIGATED EXECUTIVES FOR PLAYING GOLF AND EATING FRENCH FRIES FRIED POTATOES ARE LIKE A BOMB HE WROTE IN A 44PAGE BOOKLET TITLED FEEDING THE WARRIOR SPIRIT WHICH ADVISES A DIET HEAVY ON FRUITS AND VEGETABLES MR LOPEZ IN HIS HEAVILY ACCENTED ENGLISH ALSO PUBLICLY DECLARED HIS DEDICATION TO MY HERO JACK SMITH WHOSE PICTURE HE DISPLAYED ON HIS OFFICE WALL BUT NOW IRONICALLY MR LOPEZ HAS TURNED THE SAME HARDNOSED NEGOTIATING TECHNIQUES THAT HE USED ON GM'S SUPPLIERS ON THE AUTO MAKER ITSELF AND SPECIFICALLY ON MR SMITH A MONTH AGO WHEN VW WAS FIRST WOOING MR LOPEZ MR SMITH KEPT HIM AT GM BY PROMOTING HIM TO GROUP VICE PRESIDENT AND PRESUMABLY BOOSTING HIS PAY THAT SEEMED TO SETTLE THE MATTER UNTIL A DETERMINED MR PIECH WHO BECAME VW'S CHAIRMAN IN JANUARY MADE A SECOND RUN AT MR LOPEZ AFTER THAT RUMORS BEGAN CIRCULATING AROUND DETROIT THAT MR LOPEZ WOULD JUMP TO VW AFTER ALL EVEN THOUGH MR SMITH SAID HE DOUBTED THAT WOULD HAPPEN I'M PRETTY COMFORTABLE THAT MR LOPEZ WILL STAY HE SAID AT THE GENEVA AUTO SHOW TWO WEEKS AGO MR LOPEZ FOR HIS PART SAID HE WAS HAPPY AT GM BUT CRYPTICALLY ADDED I'M NO PROPHET MR LOPEZ COULDN'T BE REACHED FOR COMMENT YESTERDAY ABOUT HIS LATEST DECISION TO REMAIN WITH GM IT ISN'T CLEAR WHY MR SMITH DIDN'T MAKE HIS COUNTEROFFER TO MR LOPEZ ON THURSDAY BEFORE HE SAID GOODBYE ONE POSSIBILITY SOME SUPPLIERS SPECULATED IS THAT GM'S BOARD OF DIRECTORS PUSHED FOR MR SMITH TO KEEP MR LOPEZ IN ANY EVENT THE ABRUPT CHANGE IN MR LOPEZ'S DECISION JARRED GM EXECUTIVES AS SEVERAL OF THEM CONFIDED YESTERDAY AND ALSO MANY GM SUPPLIERS WHO HAD SPENT THE WEEKEND TOASTING MR LOPEZ'S DEPARTURE PART OF MR SMITH'S THINKING MAY BE THAT DESPITE HIS STATEMENT THURSDAY THAT COSTCUTTING WOULD CONTINUE WITHOUT MR LOPEZ GM NEEDS MR LOPEZ'S HIGHPROFILE INTENSITY TO PROVIDE CREDIBILITY TO ITS EFFORTS GM'S STOCK DROPPED 1625 A SHARE ON THURSDAY AS RUMORS SPREAD ON WALL STREET THAT THE AUTO MAKER'S CHIEF COSTCUTTER WAS LEAVING THE STOCK CLOSED FRIDAY AT 38375 DOWN 375 CENTS GM SORELY NEEDS MORE COSTCUTTING AT ITS ASSEMBLY OPERATIONS IT SPENDS 795 MORE IN LABOR COSTS ON EACH VEHICLE THAN FORD MOTOR CO DOES ACCORDING TO AN ANALYSIS LAST FALL BY HARBOUR & ASSOCIATES AN AUTOMOTIVE CONSULTING FIRM ALTHOUGH MR LOPEZ MADE HIS NAME AT GM EUROPE BY CUTTING PROCUREMENT COSTS HIS BACKGROUND IS IN MANUFACTURING HE FIRST ROSE TO PROMINENCE AT GM EUROPE BY IMPROVING EFFICIENCY AT GM'S PLANT IN ZARAGOSA SPAIN IN THE EARLY 1980S GM SIMPLY COULDN'T AFFORD TO DO WITHOUT THE KINDS OF COSTCUTTING MR LOPEZ HAS ACHIEVED SAID JOHN CASESA AUTOMOTIVE ANALYST WITH WERTHEIM SCHRODER & CO TO A GREAT EXTENT GM EUROPE SPED AHEAD OF VOLKSWAGEN BECAUSE OF LOPEZ THEY DIDN'T WANT THEIR SECRET WEAPON IN THE HANDS OF VW WHAT'S MORE MR LOPEZ'S NEW ROLE WILL GIVE MR SMITH WHO HAD TAKEN DIRECT CHARGE OF GM'S AILING NORTH AMERICAN OPERATIONS MORE FREEDOM TO CONCENTRATE ON THE COMPANY'S OVERALL DIRECTION THE TRADITIONAL ROLE OF A CHIEF EXECUTIVE OFFICER MR SMITH NEEDS TO DEVOTE HIS ATTENTION TO MUCH BROADER VISIONS OF THE COMPANY AND YOU CANNOT DO THAT WHEN YOU ARE UP TO YOUR NECK IN NAO NORTH AMERICAN OPERATIONS STRATEGY BOARD MEETINGS SAID MR CASESA 9303150003 930315 KASLER CORP TO MERGE WITH MONTANA FIRM POSTS 43 DROP IN NET HIGHLAND CALIF KASLER CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO MERGE WITH A MONTANA CONCERN OWNED BY INDUSTRIALIST DENNIS R WASHINGTON AND REPORTED A 43 DROP IN FISCAL FIRSTQUARTER EARNINGS KASLER A HIGHWAY CONSTRUCTION COMPANY SAID IT ANTICIPATES SLIGHTLY LOWER EARNINGS AND REVENUE FOR THE FISCAL YEAR IN THE JAN 31 FIRST QUARTER KASLER EARNED 892000 OR NINE CENTS A SHARE COMPARED WITH 16 MILLION OR 16 CENTS A SHARE A YEAR AGO SALES DROPPED 27 TO 287 MILLION FROM 40 MILLION THE COMPANY ATTRIBUTED ITS SALES AND EARNINGS DECLINES IN PART TO HEAVY RAIN STORMS IN JANUARY AND SAID A DROP IN NEW CONTRACTS LAST YEAR WOULD AFFECT 1993 EARNINGS KASLER'S PROJECT BACKLOG FELL 52 TO 107 MILLION FROM 221 MILLION A YEAR AGO KASLER ALSO SAID IT ACCEPTED A PROPOSED AGREEMENT TO MERGE WITH WASHINGTON CONTRACTORS GROUP INC OF MISSOULA MONT UNDER THE MERGER AGREEMENT WITH MR WASHINGTON'S CLOSELY HELD CONSTRUCTION AND MINING CONCERN KASLER AND WASHINGTON CONTRACTORS WOULD BE WHOLLY OWNED SUBSIDIARIES OF A NEW HOLDING COMPANY THAT WOULD RETAIN THE KASLER NAME AND CONTINUE TO BE PUBLICLY TRADED MR WASHINGTON WHO NOW HOLDS AN 83 STAKE IN KASLER WOULD OWN 66 OF THE NEW COMPANY WITH THE MINORITY INTEREST HELD BY EXISTING KASLER SHAREHOLDERS THE PROPOSAL IS SUBJECT TO SHAREHOLDER APPROVAL AT KASLER'S ANNUAL MEETING IN JUNE A SPOKESMAN FOR MR WASHINGTON SAID HE WOULD NOMINATE A REPRESENTATIVE FROM WASHINGTON CONTRACTORS TO SERVE AS ONE OF NINE DIRECTORS ON A BOARD THAT WILL ALSO HAVE SEVEN INDEPENDENT DIRECTORS AND ONE FROM THE CURRENT KASLER BOARD A KASLER SPOKESMAN SAID THE COMPANY HASN'T DECIDED WHETHER IT WILL TAKE A RESTRUCTURING CHARGE 9303150002 930315 STOCK AND BOND RALLIES MAY KEEP ON ROLLING ABREAST OF THE MARKET SMALL INVESTORS' FLOOD OF CASH BOLSTERS PRICES BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS PLUNGED FRIDAY AND SOME DYEDINTHEWOOL BEARS DECLARED THE SELLOFF THE START OF A LONG CORRECTION BUT MANY ON WALL STREET DISAGREED SURE STOCKS MAY BE PRICEY THEY SAY BUT DON'T OVERLOOK THE MUSCLE OF THE LITTLE GUY THERE'S SO MUCH CASH FLOODING IN FROM SMALL INVESTORS IT'S HARD TO BE TREMENDOUSLY BEARISH ON STOCKS SAYS ROBERT BACARELLA MANAGER OF THE 600 MILLION MONETTA FUND IN WHEATON ILL ON FRIDAY STOCKS TUMBLED ON FEARS OF RISING INTEREST RATES AND WORRIES THAT INSTABILITY IN RUSSIA COULD DESTROY AMERICA'S HOPE FOR A DEFICITCUTTING PEACE DIVIDEND THE SELLOFF TRIGGERED BY LAST MONTH'S 04 GAIN IN PRODUCER PRICES SENT THE DOW JONES INDUSTRIAL AVERAGE PLUNGING MORE THAN 50 POINTS SEVERAL TIMES DURING THE COURSE OF TRADING BUT STOCKS MANAGED TO REBOUND WITH THE DOW JONES INDUSTRIALS ERASING ALMOST HALF ITS LOSSES TO END 2918 POINTS LOWER AT 342782 ONE REASON FOR THE MARKET'S QUICK RECOVERY ANALYSTS SUSPECT IS THE SMALL INVESTOR AS INTEREST RATES HAVE FALLEN TO TWODECADE LOWS THE LITTLE GUY HAS BEEN STAMPEDING INTO THE STOCK MARKET PUMPING PRICES UP TO RECORD HIGHS AND ANALYSTS EXPECT THE TREND TO CONTINUE TO BE SURE STOCKS PRICES MAY SUFFER A HICCUP OR TWO ON UNEXPECTED DEVELOPMENTS SUCH AS TURMOIL IN RUSSIA THESE ANALYSTS ACKNOWLEDGE BUT AS LONG AS INTEREST RATES ARE LOW STOCK PRICES ARE LIKELY TO HEAD HIGHER THERE IS NO WAY ANYONE CAN BE BEARISH UNLESS RATES GO UP DECLARES ELAINE GARZARELLI SHEARSON LEHMAN BROTHERS' STAR QUANTITATIVE STRATEGIST I THINK THE MARKET IS GOING TO BE LIKE A ROCKET SHIP WHEN EVERYBODY REALIZES THAT PRESIDENT CLINTON'S PLANS ARE GOOD FOR THE ECONOMY AND WHILE THE FLOOD OF CASH FROM SMALL INVESTORS IS LIKELY TO LIMIT THE MARKET'S LOSSES SOME MONEY MANAGERS FEAR THAT THE PENTUP DEMAND FOR STOCKS COULD SPARK AN EXPLOSIVE RALLY THAT TAKES WALL STREET AND MANY MONEY MANAGERS BY SURPRISE SINCE THE START OF THE YEAR MR BACARELLA OF MONETTA HAS BEEN WHITTLING HIS CASH POSITION TO 30 FROM 35 BY SELECTIVELY ADDING STOCKS PARTICULARLY HEALTHCARE ISSUES TO HIS PORTFOLIO AND WHENEVER THE MARKET SELLS OFF HE PLANS TO DEPLOY HIS CASH TO BUY MORE IT'S NOT THE TIME TO BE AGGRESSIVE BUYERS OF STOCKS BUT I AM CAUTIOUSLY OPTIMISTIC ABOUT THE MARKET SAYS MR BACARELLA IF INVESTORS ARE CONVINCED THAT ECONOMIC GROWTH ISN'T FALTERING IN THE SECOND QUARTER HE SAYS THEN STOCKS COULD SOAR IN A RALLY THAT IS EXAGGERATED BY THE SHEER MOUNTAINS OF CASH THAT ARE WAITING TO BE INVESTED AND MOUNTAINS THERE ARE INDEED ACCORDING TO AMG DATA SERVICES ABOUT 74 BILLION HAS FLOODED INTO STOCK FUNDS SINCE THE MIDDLE OF FEBRUARY SUGGESTING THAT INVESTOR APPETITE FOR STOCKS IS STILL STRONG AMG'S DATA COVERS ABOUT 80 OF ALL STOCK FUNDS WHAT'S MORE THE INVESTMENT COMPANY INSTITUTE SAYS STOCK FUNDS HAD ASSETS OF 4932 BILLION AS OF THE END OF JANUARY UP FROM ABOUT 3677 BILLION AT THE START OF 1992 SOME OF THAT GAIN CAME FROM RISING STOCK PRICES BUT MOST OF IT WAS DUE TO CASH INFLOW WHILE MOST OF THE ASSETS ARE ALREADY INVESTED IN STOCKS ABOUT 447 BILLION IS STILL LYING AROUND IN CASH THE HIGHEST AMOUNT OF CASH IN STOCK FUNDS EVER AND ABOUT A THIRD MORE THAN AT THE START OF LAST YEAR WITH JUST A SLIVER OF GOOD ECONOMIC NEWS PRICES COULD RALLY SHARPLY ANALYSTS SAY MARKETS ARE STRICTLY A FUNCTION OF LIQUIDITY AND THE LIQUIDITY IS THERE WITH A CAPITAL L SAYS JIM CRAIG MANAGER OF THE JANUS FUND WHICH SURPASSED 7 BILLION LAST WEEK MR CRAIG IS SITTING ON 28 CASH WHICH HE PLANS TO SELECTIVELY PLUNK DOWN WHENEVER HE FINDS STOCKS THAT ARE APPEALING THE CASH IS HIGHER THAN WE WOULD LIKE IT TO BE BUT IT'S A FUNCTION OF THE LENGTH OF THE BULL MOVE SAYS MR CRAIG WE ARE EARNINGS INVESTORS WE LOOK FOR A CHANGE IN EARNINGS POTENTIAL AND RIGHT NOW IT'S PRETTY BARREN OUT THERE IN TERMS OF UNDISCOVERED EARNINGS STORIES EVEN STRATEGISTS SUCH AS MICHAEL METZ AT OPPENHEIMER WHO THINKS STOCKS ARE EXPENSIVE NOTES THAT YOU CAN'T UNDERESTIMATE THE WEALTH OF CASH THAT IS POURING INTO MUTUAL FUNDS IF YOU LOOK AT THE FLOW OF FUNDS BY THE SOCALLED LITTLE GUY IT IS RUNNING AROUND 20 BILLION A MONTH INTO STOCK AND BOND FUNDS SAYS MR METZ THE DIMENSION OF THIS MONEY DWARFS ABSOLUTELY ANYTHING WE HAVE EVER SEEN AND IT IS A CASE ONE COULD MAKE FOR A 3600 OR 3700 DOW FOR NOW MR METZ THINKS OTHER GHOSTS COULD SPOOK THE MARKET IF INFLATION IS PICKING UP AS FRIDAY'S PRODUCER PRICE REPORT SUGGESTS AND INTEREST RATES ARE SET TO RISE THEN STOCK MARKET GAINS WILL BE LIMITED SAYS MR METZ WHAT'S MORE THE POLITICAL TURMOIL IN RUSSIA COULD DARKEN THE INFLATION PICTURE ONE OF THE REASONS COMMODITY PRICES PARTICULARLY INDUSTRIAL METALS HAVE BEEN SO DEPRESSED IS THAT THE RUSSIANS HAVE BEEN DUMPING RAW MATERIALS ON THE WORLD MARKET FOR THE LAST TWO YEARS IN A DESPERATE ATTEMPT TO RAISE HARD CURRENCY IF THE SITUATION IN RUSSIA WORSENS IT COULD BE RATHER OMINOUS FOR INFLATION MR METZ SAYS SUPPLIES OF OIL TO THE WEST MAY BE DISRUPTED AND PRODUCTION OF INDUSTRIAL METALS MAY DROP DRASTICALLY PUTTING UPWARD PRESSURE ON WORLD COMMODITY PRICES ANOTHER CONCERN ANALYSTS SAY IS THAT IF RUSSIA SPIRALS OUT OF CONTROL THEN AMERICA'S HOPE FOR A PEACE DIVIDEND WILL BE TORPEDOED AND THAT COULD DESTROY MR CLINTON'S EFFORTS TO SLASH THE BUDGET DEFICIT THE MARKET IS ENTERING A VERY PROTRACTED TRADING RANGE AS IT DID IN 1992 AND IN THAT TRADING RANGE THERE WILL BE SOME WINNERS AND SOME LOSERS SAYS MR METZ WHO THINKS GAINS IN THE DOW INDUSTRIALS ARE LIMITED TO 3500 CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH THINKS SOME OF THE BIGGEST WINNERS WILL BE STOCKS OF COMPANIES WHOSE FORTUNES ARE TIED TO THE ECONOMY I THINK THE ECONOMY IS LOT STRONGER THAN PEOPLE THINK AND I THINK THE STOCK MARKET CAN GO HIGHER LED BY CYCLICAL STOCKS SAYS MR CLOUGH HE SAYS THAT COMMODITY PRICES HAVE BEEN UNDER PRESSURE FOR A DECADE AND MANY RAW MATERIALS PRODUCERS SUCH AS STEELMAKERS HAVE BEEN UNSUCCESSFUL IN RAISING PRICES MEANWHILE PRODUCERS OF CONSUMER GOODS HAVE ENJOYED A DECADELONG BOOM ON THE BACK OF SHARP PRICE GAINS MR CLOUGH EXPECTS THAT TO ALL CHANGE SOON COMMODITY PRICES ARE BOUNCING UP AND HE EXPECTS THAT WILL SQUEEZE THE PROFIT MARGINS OF COMPANIES THAT USE RAW MATERIALS FROM STEEL TO COPPER MANY OF THESE COMPANIES WILL FIND IT HARD TO PASS THOSE PRICE INCREASES THROUGH TO THE CONSUMER KEEPING INFLATION AT THE CONSUMER LEVEL TAME HE SAYS IN THIS KIND OF ENVIRONMENT INVESTORS WILL HAVE TO BE VERY CAREFUL IN PICKING STOCKS WHILE YOU WANT TO BE INVESTED IN A STEEL COMPANY YOU NEED TO BE VERY SELECTIVE IN INVESTING IN COMPANIES THAT USE STEEL HE SAYS FOR INSTANCE WHILE AUTO COMPANIES MAY BE ABLE TO TRANSFER PART OF THE INCREASE IN RAW MATERIAL PRICES TO THEIR BUYERS MR CLOUGH SAYS CONTAINERS COMPANIES MIGHT NOT MAKING THOSE STOCKS LESS ATTRACTIVE FEARS OF RISING INTEREST RATES AND INSTABILITY IN RUSSIA SENT STOCK PRICES SKIDDING THE DOW JONES INDUSTRIAL AVERAGE FELL 2918 POINTS TO 342782 IN MODERATELY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX ENDED 389 POINTS LOWER AT 44983 AND THE NEW YORK STOCK EXCHANGE COMPOSITE FELL 204 TO 24816 VOLUME ON THE BIG BOARD TOTALED 244740000 SHARES DOWN SLIGHTLY FROM THURSDAY'S 250720000 SHARES DECLINING ISSUES OUTNUMBERED ADVANCERS 1390 TO 553 STOCKS PLUNGED AT THE OPENING BELL AS NEWS THAT PRODUCER PRICES ROSE 04 LAST MONTH UNSETTLED THE MARKET THE GAIN WAS SLIGHTLY MORE THAN ECONOMISTS HAD EXPECTED AND WAS THE HIGHEST MONTHLY RISE SINCE 1990 CONCERNS THAT RUSSIA MAY COLLAPSE ALSO SPARKED AN ONSLAUGHT OF SELLING BUT PRICES RECOVERED SLIGHTLY BY THE END OF THE DAY AS BUYERS STEPPED IN AMERICAN EXPRESS WAS THE THIRD MOST ACTIVELY TRADED STOCK ON THE BIG BOARD EDGING UP 5/8 TO 28 PRIMERICA AND AMERICAN EXPRESS SAID THEY SIGNED A DEFINITIVE AGREEMENT TO COMBINE PRIMERICA'S SMITH BARNEY UNIT AND THE DOMESTIC RETAIL BROKERAGE AND ASSET MANAGEMENT BUSINESS OF SHEARSON LEHMAN BROTHERS A SUBSIDIARY OF AMERICAN EXPRESS PRIMERICA JUMPED 1 1/2 TO 49 1/2 CASINO STOCKS WERE THE MARKET'S BEST PERFORMERS MORGAN STANLEY BOOSTED THE GROUP BY UPGRADING ITS RATING ON SEVERAL STOCKS INCLUDING CAESARS WORLD AND CIRCUS CIRCUS CAESARS WORLD GAINED 1 3/8 TO 45 3/4 AND CIRCUS CIRCUS ROSE 2 3/4 TO 49 RAYMOND JAMES & ASSOCIATES ALSO HELPED WITH POSITIVE COMMENTS ON PROMUS AND SHOWBOAT PROMUS WHICH RALLIED 1 3/8 TO 69 3/8 IS APPLYING FOR MORE GAMING LICENSES IN MISSISSIPPI AND LOUISIANA SHOWBOAT IS ALSO WORKING ON CASINOS IN LOUISIANA AND ONTARIO CANADA SHOWBOAT SURGED 3 1/8 TO 20 GOLD STOCKS WERE STRONG HAVING PERKED UP ON THE MILDLY INFLATIONARY REPORT ON PRODUCER PRICES AMONG GOLD STOCKS HOMESTAKE MINING FINISHED 5/8 HIGHER AT 12 1/2 AND BATTLE MOUNTAIN GOLD ROSE 1/4 TO 6 1/4 CRAIG S SMITH CONTRIBUTED TO THIS ARTICLE SEE RELATED ARTICLE CREDIT MARKETS MANY FORECAST 30YEAR YIELD FALLING TO 65 WSJ MARCH 15 1993 9303150001 930315 OLD FRIENDS WEILL AND GOLUB FIND IT EASY TO TALK TURKEY ABOUT SHEARSON BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT WAS A WELLTIMED PHONE CALL EVEN BEFORE SANFORD I WEILL THE CHAIRMAN OF PRIMERICA CORP TELEPHONED HARVEY GOLUB THE NEW CHIEF EXECUTIVE OF AMERICAN EXPRESS CO TO ASK ABOUT BUYING SHEARSON LEHMAN BROTHERS' BROKERAGE BUSINESS MR GOLUB HAD DECIDED THAT SELLING IT WAS A PRIORITY OF HIS INDEED WHEN AMERICAN EXPRESS DIRECTORS EARLIER THIS YEAR CHOSE MR GOLUB TO SUCCEED JAMES D ROBINSON III AS CHIEF EXECUTIVE OF AMERICAN EXPRESS THEY PRIVATELY MADE IT CLEAR TO MR GOLUB THAT THEY WANTED SHEARSON SOLD NOBODY HAS WANTED TO FEED THAT KITTY FOR A LONG TIME ONE ADVISER TO THE BOARD SAID ON FRIDAY SO WHEN MR WEILL CALLED MR GOLUB AT HIS OFFICE THE WEEK OF FEB 15 WITH A PROPOSAL TO BUY SHEARSON MR GOLUB WAS EAGER TO LISTEN THAT WEEKEND THE TWO MET AT MR GOLUB'S MANHATTAN APARTMENT WE FIRST SPOKE ABOUT OUR CHILDREN MR GOLUB RECALLS MR WEILL IS THE GODFATHER OF MR GOLUB'S SON THEN OVER COFFEE THE TWO REMINISCED ABOUT MR GOLUB'S DAYS AT MCKINSEY & CO IN THE EARLY 1980S WHEN HE FIRST MET MR WEILL THEN PRESIDENT OF AMERICAN EXPRESS MR WEILL HIRED MCKINSEY TO HELP EVALUATE A POSSIBLE ACQUISITION OF IDS FINANCIAL HE WAS SO IMPRESSED WITH MR GOLUB'S ADVICE THAT WHEN THAT PURCHASE WENT FORWARD IN 1984 MR WEILL TAPPED MR GOLUB TO RUN IDS FINALLY THE TWO GOT DOWN TO BUSINESS MR WEILL DEFINED HIS POINT OF VIEW ABOUT PRICE AND I THOUGHT THE DIFFERENCE BETWEEN BID AND ASKED WAS CLOSE ENOUGH SO THAT IT JUSTIFIED OUR SPENDING MORE TIME TOGETHER MR GOLUB RECALLS BY FRIDAY FEB 26 MESSRS GOLUB AND WEILL AND A SMALL GROUP OF THEIR RESPECTIVE ADVISERS HAD AGREED ON THE BROAD OUTLINE OF A PURCHASE BY PRIMERICA OF SHEARSON THAT EVENING MR WEILL ASKED HIS LONGTIME ADVISER AND ATTORNEY KENNETH BIALKIN TO RETURN FROM ISRAEL IMMEDIATELY TO WORK OUT DETAILS MR BIALKIN DAN SCHLOENDORN A PARTNER AT WILLKIE FARR & GALLAGHER WHICH REPRESENTS AMERICAN EXPRESS AND A TEAM OF 20 ATTORNEYS AND EXECUTIVES OF AMERICAN EXPRESS AND PRIMERICA WORKED STRENUOUSLY FOR THE NEXT 10 DAYS NEGOTIATING DETAILS OF THE ACQUISITION THAT IT WOULD TAKE PLACE NEVER SEEMED IN ANY DOUBT PEOPLE INVOLVED IN THE TALKS SAY THE TRICKIEST PART OF THE DEAL WAS KEEPING IT SECRET THEY SAY THAT MR WEILL WAS ADAMANT ABOUT AVOIDING LEAKS BECAUSE HE BELIEVED PREMATURE DISCLOSURES TO THE PRESS WERE LARGELY RESPONSIBLE FOR THE FAILURE OF HIS PREVIOUS ATTEMPT TO BUY SHEARSON IN 1990 BUT BY LATE THE WEEK OF MARCH 1 OTHERS HAD TO BE LET IN ON THE SECRET DATAPROCESSING PERSONNEL AND SHEARSON LEHMAN INVESTMENT BANKERS FOR EXAMPLE BY THURSDAY MARCH 4 J TOMILSON HILL AND RICHARD FULD SHEARSON'S COPRESIDENTS WHO HAD BEEN KEPT OUT OF THE LOOP BEGAN HEARING RUMORS THAT SALE TALKS WERE AFOOT ON FRIDAY MR GOLUB FINALLY TOLD THEM OF HIS PLANS THAT AFTERNOON MR GOLUB CALLED A TELEPHONE MEETING OF THE AMERICAN EXPRESS BOARD AND MANY DIRECTORS LEARNED FOR THE FIRST TIME OF THE PROPOSED SALE PRIMERICA DIRECTORS MEANWHILE WERE STILL IN THE DARK ON SUNDAY AFTERNOON FEARING THAT HIS BOARD MEMBERS MIGHT READ RUMORS OF HIS PLANS TO BUY SHEARSON IN THE PRESS ON MONDAY MR WEILL CALLED AN EMERGENCY BOARD MEETING LAST WEDNESDAY THE DAY AFTER A PAGEONE STORY IN THIS NEWSPAPER DISCLOSED THE TALKS BOARDS OF BOTH PRIMERICA AND AMERICAN EXPRESS VOTED UNANIMOUSLY TO APPROVE THE SALE OF SHEARSON'S BROKERAGE BUSINESS TO PRIMERICA ON FRIDAY MORNING THE SALE AGREEMENT WAS SIGNED IN A CONFERENCE ROOM IN THE MIDTOWN OFFICES OF WILLKIE FARR & GALLAGHER IT ALL HAD GONE SMOOTHLY FOR ONCE THIS WASN'T A TRANSACTION FULL OF HIGH DRAMA AN AMERICAN EXPRESS ADVISER SAYS 9303150105 930225 COUNTERPOINT GROWING' THE ECONOMY IS A FERTILE IDEA ROBERT S MCELVAINE THE FIRST TIME THAT I HEARD BILL CLINTON SAY DURING LAST YEAR'S CAMPAIGN THAT HE WANTED TO GROW THE ECONOMY I CRINGED ANOTHER MISUSE OF THE LANGUAGE IT SEEMED AND THIS FROM A RHODES SCHOLAR ONE CAN GROW VEGETABLES OR FLOWERS BUT PEOPLE DO NOT GROW ECONOMIES ECONOMIES GROW IT WAS NOT UNTIL SHORTLY AFTER THE PRESIDENT'S ECONOMIC MESSAGE TO CONGRESS WHEN I HEARD HILLARY RODHAM CLINTON SPEAK OF GROWING THE ECONOMY THAT I SUDDENLY REALIZED THAT THOSE WHO HEAD THIS ADMINISTRATION ARE NOT PLAYING LOOSE WITH OUR MOTHER TONGUE RATHER THEY ARE BEING VERY PRECISE IN THEIR MEANING INDEED NOTHING MORE CLEARLY REVEALS THE DIFFERENCE BETWEEN THE PHILOSOPHY OF THE CLINTON ADMINISTRATION AND THAT OF ITS TWO IMMEDIATE PREDECESSORS THAN DOES THE CONSTRUCTION GROW THE ECONOMY AS AN INTRANSITIVE VERB GROW MEANS TO INCREASE NATURALLY IN SIZE AS A TRANSITIVE VERB IT MEANS TO CAUSE TO GROW CULTIVATE RAISE THE INTRANSITIVE THE ECONOMY GROWS STATES THE BELIEF OF THOSE SUCH AS THE PEOPLE WHO HELD POWER UNDER RONALD REAGAN THAT THIS IS A NATURAL PROCESS THAT REQUIRES MERELY THAT THE GOVERNMENT GET OUT OF THE WAY BY USING GROW AS A TRANSITIVE VERB ON THE OTHER HAND PRESIDENT AND MRS CLINTON HAVE IDENTIFIED THEMSELVES WITH THOSE WHO BELIEVE THAT GOVERNMENT CAN PLAY A PART IN THE SOLUTION THE CLINTONS ARE RIGHT PLANTS AFTER ALL CAN GROW IN THE INTRANSITIVE SENSE OF THE WORD BY THEMSELVES BUT SOME 10000 YEARS AGO HUMANS BEGAN TO DISCOVER THAT PLANTS PERFORM CONSIDERABLY BETTER IF HUMANS INTERVENE AND GROW THEM IN THE TRANSITIVE USAGE CULTIVATION USUALLY PRODUCES MORE BOUNTIFUL CROPS THAN DOES JUST LETTING NATURE TAKE ITS COURSE HUNTERGATHERERS WERE AT THE MERCY OF PLANTS AND ANIMALS LEFT TO GROW IN THE INTRANSITIVE SENSE WE REFER TO THE CULTIVATION OF PLANTS AS AGRICULTURE WE MIGHT CALL THE CORRESPONDING INTERVENTION IN THE ECONOMY ECONOCULTURE IT IS ONE OF THE ODDITIES OF THE MODERN WORLD THAT MANY OF THOSE WHO HAVE DONE THE MOST TO MOVE US FARTHEST FROM A NATURAL EXISTENCE THE PEOPLE WHO HAVE OVERSEEN THE RISE OF AN INDUSTRIAL AND HIGHLY TECHNOLOGICAL WORLD HAVE INSISTED THAT THERE SHOULD BE NO INTERVENTION IN THE ECONOMY WE MUST THESE LAISSEZ FAIRE ADVOCATES HAVE LONG MAINTAINED LEAVE OUR ECONOMIC FORTUNES TO THE GODS OF THE MARKETPLACE THE OPPONENTS OF AGRICULTURE MANY MILLENNIA AGO PROBABLY MADE SIMILAR ARGUMENTS MOTHER EARTH WILL PROVIDE DON'T INTERFERE DON'T GROW FOOD LET FOOD GROW LET NATURE TAKE ITS COURSE THE SUPPORTERS OF AN INTRANSITIVE TO GROW SAY TODAY BUT THAT IS AN ABSURDITY IN OUR MODERN INDUSTRIAL AND TECHNOLOGICAL SOCIETY THOSE WHO THROUGH THEIR MASSIVE INTERVENTION CREATED A WHOLLY UNNATURAL WORLD NOW INSIST THAT THERE BE NO FURTHER INTERVENTION WE CAN GROW THE ECONOMY MUCH AS WE CAN GROW VEGETABLES BUT IT IS A CONSIDERABLY MORE COMPLICATED MATTER IT IS CERTAINLY TRUE THAT NOT ALL INTERVENTIONS ARE BENEFICIAL GROWERS MAKE MISTAKES IT IS QUITE POSSIBLE TO KILL BY OVERFERTILIZING AND THIS APPLIES TO ECONOMIES AS WELL AS PLANTS INTERVENTIONS SOMETIMES PRODUCE SHORTTERM BENEFITS AT THE EXPENSE OF CREATING GREATER LONGTERM PROBLEMS THE OVERUSE OF PESTICIDES FOR EXAMPLE CAN HAVE AN EFFECT ON AGRICULTURE SIMILAR TO THE EFFECT THE OVERUSE OF DEFICITS CAN HAVE ON ECONOCULTURE IMMEDIATE STIMULATION IS EVENTUALLY OFFSET BY THE UNDESIRABLE SIDEEFFECTS IN BOTH CASES THE ORIGINAL TARGET INSECTS OR DEPRESSED DEMAND EVENTUALLY BUILDS UP A RESISTANCE TO THE GROWER'S MEDICINE BUT SUCH PROBLEMS SHOULD NOT LEAD US TO THE CONCLUSION THAT THE ABANDONMENT OF ALL CULTIVATION AND THE RETURN TO COMPLETE DEPENDENCE ON NATURE IS PREFERABLE TO INTERVENTION WE'VE COME TOO FAR TO LEAVE OUR FATE ENTIRELY TO MYSTICAL FORCES PRACTITIONERS OF AGRICULTURE DO NOT GO AGAINST NATURAL PROCESSES THEY DIRECT THOSE PROCESSES IN WAYS THAT BETTER SUIT HUMAN ENDS FARMERS ENCOURAGE SOME NATURAL TENDENCIES AND DISCOURAGE OTHERS THOSE WHO PRACTICE ECONOCULTURE MUST DO THE SAME THEY CAN NO MORE IGNORE THE NATURE OF THE HUMANS WHO COMPOSE THE ECONOMY THEY ARE TRYING TO GROW THAN FARMERS CAN IGNORE THE NATURE OF THE PLANTS THEY WANT TO GROW WITH THE COMING OF THE CLINTON ADMINISTRATION TO WASHINGTON ECONOMIC BREEDERS AND FARMERS HAVE REPLACED ECONOMIC HUNTERGATHERERS THAT IS CAUSE FOR AT LEAST CAUTIOUS OPTIMISM THE CLINTON ECONOMIC PLAN INVOLVES MODEST FERTILIZATION COMBINED WITH SELECTIVE PRUNING ITS DISTINCTION BETWEEN SPENDING AND INVESTMENT THOUGH RIDICULED BY REPUBLICANS AND THIS NEWSPAPER'S EDITORIAL PAGE IS A SENSIBLE ONE THAT IS USED BY ALL SUCCESSFUL BUSINESSES BUT IF THE PLAN IS TO WORK IT WILL BE NECESSARY NOT ONLY TO USE GROW AS A TRANSITIVE VERB BUT TO EMPLOY IT IN THE CORRECT NUMBER AND PERSON IT CANNOT BE I YOU OR THEY GROW THE ECONOMY IF THE PLAN IS GOING TO SUCCEED IT MUST BE WE GROW THE ECONOMY MR MCELVAINE IS A PROFESSOR OF ARTS AND LETTERS AT MILLSAPS COLLEGE JACKSON MISS HIS LATEST BOOK THE WAY WE ARE HUMAN NATURE SEX AND TRADITIONAL VALUES WILL BE PUBLISHED BY SCRIBNERS THIS FALL SEE RELATED LETTERS LETTERS TO THE EDITOR GOVERNMENT GARDENS USUALLY GO TO SEED WSJ MARCH 15 1993 9302250115 9303120183 930312 NISSAN PLANS VENTURE TO BUILD LIGHT TRUCKS AT A PLANT IN CHINA SPECIAL TO THE WALL STREET JOURNAL TOKYO NISSAN MOTOR CO SAID IT WILL FORM A JOINT VENTURE TO PRODUCE AND MARKET COMMERCIAL VEHICLES IN CHINA THE NO 2 JAPANESE AUTO MAKER SAID IT WILL TEAM UP WITH ZHENGZHOU LIGHT TRUCK FACTORY AN ARM OF THE AEOLUS AUTOMOBILE INDUSTRY GROUP AND OTHER PARTNERS THE NEW COMPANY WILL BE CALLED ZHENGZHOU NISSAN AUTOMOBILE CO AND WILL BE CAPITALIZED AT 250 MILLION YUAN 428 MILLION NISSAN SAID NISSAN SAID THE VENTURE WILL BEGIN OPERATION IN EARLY 1994 ZHENGZHOU LIGHT TRUCK FACTORY IS TO CONTRIBUTE 35 OF THE SEED MONEY WITH NISSAN PUTTING UP 5 THE INDUSTRIAL & COMMERCE BANK OF CHINA AND THAI DIEANDMOLD MAKER SAMMITRA MOTORS GROUP WILL CONTRIBUTE 25 EACH THE REMAINING 10 NISSAN SAID WILL COME FROM CHINA INTERNATIONAL TRUST & INVESTMENT CORP NISSAN SAID IT WILL PROVIDE TECHNICAL ASSISTANCE ON THE ASSEMBLY OF VEHICLES AND MAJOR COMPONENTS AS WELL AS LOCALIZATION OF PARTS PRODUCTION THE JOINT VENTURE WILL MAKE NISSAN'S DOUBLECAB STYLE PICKUP TRUCKS NISSAN SAID INITIAL ANNUAL PRODUCTION IS SET AT 5000 UNITS INCREASING TO 30000 UNITS BY 1997 ZHENGZHOU LIGHT TRUCK FACTORY NOW BUILDS THREETON TRUCKS MICRO BUSES AND OTHER VEHICLES THE NEW COMPANY WILL ASSUME PRODUCTION OF THE THREETON TRUCKS NISSAN SAID BUILDING ABOUT 20000 UNITS A YEAR NISSAN SAID THE VENTURE WILL TAKE OVER ONE OF ZHENGZHOU LIGHT TRUCK FACTORY'S TWO PLANTS IN THE ZHONGMOU DISTRICT OF ZHENGZHOU ZHENGZHOU IS A CITY IN THE HENAN PROVINCE OF CHINA THE FACTORY BEGAN MANUFACTURE IN JULY 1991 AND HAS A SITE AREA OF 430000 SQUARE METERS AND A BUILDING AREA OF 90000 SQUARE METERS THE VENTURE IS TO BEGIN PRODUCTION BY ASSEMBLING PARTS FROM JAPAN BUT PLANS CALL FOR LOCALIZING PRODUCTION OF LARGE BODY PANELS AND OTHER PARTS BOOSTING LOCAL CONTENT TO ABOUT 60 BY 1997 NISSAN SAID 9303120182 930312 BIG INSTITUTIONS CONSIDER COOPERATING TO PRESS CONCERNS ABOUT BOND VALUES BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TAKING A PAGE FROM THE RECENT SUCCESS OF SHAREHOLDER ACTIVISTS SOME BIG INSTITUTIONAL INVESTORS ARE DISCUSSING BANDING TOGETHER TO PREVENT COMPANIES FROM TAKING ACTIONS THAT HURT THE VALUE OF THEIR BONDS THE BIG BONDHOLDERS INCLUDE THE 73 BILLION CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S LARGEST PUBLIC PENSION FUND THE NEW JERSEY DIVISION OF INVESTMENT NEW JERSEY'S PENSION FUND AND SEVERAL MAJOR INSURANCE COMPANIES THE EFFORT IS IN RESPONSE TO RECENT ACTIONS BY SEVERAL CORPORATIONS MOST NOTABLY MARRIOTT CORP WHOSE CONTROVERSIAL PLAN TO SPLIT ITS OPERATIONS INTO TWO UNITS ONE LOADED WITH DEBT SENT ITS BOND PRICES TUMBLING YESTERDAY MARRIOTT AGREED TO CHANGES IN ITS PROPOSAL TO MAKE IT MORE ACCEPTABLE TO BONDHOLDERS MARRIOTT HAS SERVED AS A CATALYST SAID DEWITT BOWMAN CHIEF INVESTMENT OFFICER OF THE CALIFORNIA PENSION FUND KNOWN AS CALPERS AMONG THE STEPS THE INSTITUTIONAL INVESTORS ARE PROPOSING TO PROTECT BONDHOLDER RIGHTS IS THE DRAFTING OF A STRICTER STANDARD SET OF BOND COVENANTS THAT WOULD PROTECT THE INTERESTS OF BONDHOLDERS IF A COMPANY CHOOSES TO RESTRUCTURE OR SPIN OFF PART OF ITS OPERATIONS WE SHOULD AGREE UPON SOME STANDARD BOND COVENANTS SAID ROLAND MACHOLD DIRECTOR OF THE NEW JERSEY PENSION FUND THE INFORMAL DISCUSSIONS BEGAN IN JANUARY AT A MEETING OF THE COUNCIL OF INSTITUTIONAL INVESTORS IN WASHINGTON AND HAVE CONTINUED IN RECENT WEEKS IN RESPONSE TO THE TALKS BETWEEN MARRIOTT AND ITS BONDHOLDERS HE SAID THE SUBJECT OF BONDHOLDER RIGHTS WILL PROBABLY ALSO BE DISCUSSED AT A COUNCIL MEETING SCHEDULED FOR THE END OF THIS MONTH IF BIG BONDHOLDERS BEGIN ASSERTING THEIR RIGHTS MORE AGGRESSIVELY IT COULD HAVE BROAD IMPLICATIONS FOR CORPORATIONS MANY COMPANIES UNDER PRESSURE FROM ACTIVIST SHAREHOLDERS INCLUDING CALPERS ARE CONSIDERING SPINOFFS OR RESTRUCTURINGS AS A WAY OF BOOSTING THEIR STOCK PRICE NOW SOME OF THE SAME INSTITUTIONAL INVESTORS WHO HAVE BEEN CAMPAIGNING FOR SHAREHOLDER RIGHTS ARE BECOMING MORE ACTIVE AS BONDHOLDERS WE DECIDED WE NEED TO STEP UP TO THE PLATE IN STARTING TO BE MORE ACTIVE ON THE BOND SIDE SAID RICHARD KOPPES CALPERS GENERAL COUNSEL PENSION FUNDS' EFFORTS TO PROTECT THE RIGHTS OF BONDHOLDERS COULD PUT THEM IN AN AWKWARD POSITION HOWEVER SOME EXPERTS SAY PENSION FUNDS HOLD BOTH STOCK AND BOND INVESTMENTS BUT TRANSACTIONS THAT BENEFIT A COMPANY'S STOCKHOLDERS MAY HURT ITS BONDHOLDERS IT ALMOST SEEMS LIKE THEY'RE TAKING MONEY AND MOVING IT FROM THEIR RIGHT POCKET TO THEIR LEFT POCKET SAID KENNETH LEHN A PROFESSOR OF BUSINESS ADMINISTRATION AT THE UNIVERSITY OF PITTSBURGH THIS IS NOT THE FIRST TIME THAT THE RIGHTS OF BONDHOLDERS HAVE BECOME AN ISSUE FOR CORPORATIONS AND INSTITUTIONAL INVESTORS SHOCKED BY THE RECORD 25 BILLION BUYOUT OF RJR NABISCO HOLDINGS BY KOHLBERG KRAVIS ROBERTS & CO IN 1988 INSTITUTIONAL INVESTORS BECAME CONCERNED ABOUT THE POSSIBILITY THAT UNFORESEEN EVENTS SUCH AS LEVERAGED BUYOUTS THAT USE LARGE AMOUNTS OF DEBT WOULD DAMAGE THE VALUE OF THEIR BONDS AS A RESULT INSTITUTIONAL INVESTORS BEGAN DEMANDING SOCALLED EVENTRISK COVENANTS IN BOND AGREEMENTS TO PROTECT THEM FROM CHANGES IN CORPORATE CONTROL BUT THESE EVENTRISK CLAUSES DON'T PROTECT BONDHOLDERS FROM NEGATIVE EFFECTS ON THEIR BONDS FROM TRANSACTIONS SUCH AS SPINOFFS OR RESTRUCTURINGS ALL OF THEM HAVE SERIOUS LOOPHOLES SAID PHILIP HOWARD AN ATTORNEY WITH THE NEW YORK LAW FIRM HOWARD DARBY & LEVIN ANOTHER RECENT EVENT THAT HAS WORRIED BONDHOLDERS IS MAY DEPARTMENT STORES CO'S REDEMPTION OF 160 MILLION OF ITS BONDS BONDHOLDERS SAY THE BONDS WERE PROTECTED FROM SUCH AN EARLY REDEMPTION A LAWSUIT FILED AGAINST MAY BY SEVERAL BONDHOLDERS ALLEGING UNFAIR TREATMENT IS PENDING IN AN ALABAMA STATE COURT 9303120181 930312 OTC FOCUS INDEX INCHES UP AIDED BY ADVANCES IN HEALTH CARE AND TECHNOLOGY SECTORS BY MARY ROMANO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH AILING HEALTH CARE STOCKS ON THE MEND AND A ROBUST TECHNOLOGY SECTOR NASDAQ SHARES OUTPERFORMED THEIR RECENT RECORDSETTING BIG BOARD RIVALS TRADERS SAID MARKET PLAYERS REACTED FAVORABLY TO A FEDERAL JUDGE'S RULING THAT THE HEALTH CARE TASK FORCE HEADED BY HILLARY RODHAM CLINTON MUST MEET IN PUBLIC IF THE 12MEMBER GROUP IS GATHERING INFORMATION THE GROUP CAN MEET IN PRIVATE TO FORMULATE PROPOSALS ON HEALTH CARE REVISIONS THE RULING WAS VERY POSITIVE FOR THE GROUP SAID ROBERT O'TOOLE SR HEAD OF NASDAQ INSTITUTIONAL SALES AT LEHMAN BROTHERS REFERRING TO HEALTHCARE SHARES THAT ARE BEGINNING TO REVIVE A BIT LAST MONTH BIOTECHNOLOGY HEALTH MAINTENANCE ORGANIZATIONS AND OTHER MEDICALRELATED STOCKS TOOK A FREE FALL ON SPECULATION SURROUNDING PRESIDENT CLINTON'S CALL FOR NATIONAL HEALTH CARE CHANGES BIOTECHNOLOGY COMPANY AMGEN GAINED 5/8 TO 34 5/8 HEALTH CARE STOCKS WITH THE AID OF TECHNOLOGY ISSUES HELPED THE NASDAQ COMPOSITE INDEX RISE 141 POINTS OR 02 TO 69428 NASDAQ NATIONAL MARKET SYSTEM VOLUME ROSE TO 205080000 SHARES FROM 200860000 WEDNESDAY ADVANCERS LED DECLINERS 1412 TO 1213 THE NASDAQ OUTPERFORMED BOTH THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX AND THE DOW JONES INDUSTRIALS BOTH OF WHICH HAD ENDED THE PRIOR THREE TRADING SESSIONS AT RECORD HIGHS THE TWO COULDN'T SET A FOURTH RECORD YESTERDAY THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 116 TO 25020 AND THE INDUSTRIALS CLOSED DOWN 2134 TO 345700 SOME MARKET OBSERVERS SUCH AS CHARLES HOWLEY MANAGER OF NASDAQ TRADING AT SOUNDVIEW FINANCIAL GROUP SAID THE OVERTHECOUNTER MARKET'S GAINS WERE FROM A ROTATION OUT OF THE DOW STOCKS AND INTO GROWTH STOCKS ON THE NASDAQ THE NASDAQ MARKET WAS HELPED BY SOME REBOUNDING HEALTH CARE STOCKS TRADERS SAID NOT ONLY DID THE TASK FORCE COURT RULING HELP THE SECTOR SO DID INTERESTED BUYERS THEY HAD BEEN BEATEN DOWN SO MUCH THEY'RE CHEAP SAID HEDI REYNOLDS A MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO BUT THEY'LL WAIT UNTIL SOME ONE COMES IN AND STARTS BUYING THEN EVERYONE WILL BUY SOME TRADERS SAID THEY DON'T THINK HEALTHCARE STOCKS ARE ENTERING A NEW BULL MARKET YET IT WILL BE VERY HARD FOR THEM TO TURN AROUND ON A SUSTAINED BASIS UNTIL THE HEALTH CARE PROPOSALS ARE ANNOUNCED SAID ROGER MCNAMEE A TECHNICAL ANALYST WITH INTEGRAL PARTNERS OF PALO ALTO CALIF EVEN THEN THE RECOMMENDATIONS MIGHT JUST MAKE US CERTAIN ABOUT THE BAD NEWS MR MCNAMEE SAID THE BIGGEST TECHNOLOGY ISSUES ON THE NASDAQ CLIMBED YESTERDAY APPLE COMPUTER GAINED 1/8 TO 56 7/8 MICROSOFT ROSE 1 1/2 TO 86 1/2 AND NOVELL MOVED UP 2 TO 33 1/4 SOME NASDAQ ISSUES PLUMMETED ON BAD NEWS STEWART & STEVENSON A MAKER OF CUSTOM DIESEL AND GAS TURBINE POWER SYSTEMS DROPPED 3 1/4 TO 31 1/8 AFTER IT CONFIRMED THAT THE FEDERAL BUREAU OF INVESTIGATION IS CHECKING INTO THE SOLICITATION PROCESS RELATING TO ITS CONTRACT TO MAKE ARMY TRUCKS BOB O'NEAL PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID WE BELIEVE THAT THIS INVESTIGATION IS THE RESULT OF FALSE ALLEGATIONS MADE BY A DISGRUNTLED FORMER EMPLOYEE OF A CONSULTING FIRM I AM CONFIDENT THAT AFTER THE FBI COMPLETES ITS REVIEW OF THE FACTS IN THIS MATTER THEY WILL FIND NO UNETHICAL OR IMPROPER CONDUCT BY STEWART & STEVENSON SUN MICROSYSTEMS A SUPPLIER OF COMPUTER WORKSTATIONS SERVERS AND NETWORKING SOFTWARE FELL 2 5/8 TO 32 1/4 ANALYSTS AT GOLDMAN SACHS AND DEAN WITTER REYNOLDS EXPRESSED CONCERNS ABOUT SUN'S ORDER LEVELS IN THE CURRENT QUARTER DATASCOPE LOST 1 3/4 TO 15 1/2 THE MAKER OF CLINICAL HEALTH CARE PRODUCTS SAID THE FOOD AND DRUG ADMINISTRATION REVIEW OF ITS HIGHPROFILE VASOSEAL PRODUCT WILL TAKE LONGER THAN EXPECTED THE PRODUCT IF APPROVED WILL BE USED TO STOP ARTERIAL BLEEDING AFTER ANGIOPLASTY PROCEDURES LEHMAN BROTHERS ALSO TRIMMED EARNINGS ESTIMATES FOR DATASCOPE TO 93 CENTS A SHARE IN 1993 DOWN FROM 98 CENTS AND 110 IN 1994 DOWN FROM 120 SEVERAL FOOD BEVERAGE AND RESTAURANT STOCKS MOVED ACCORDINGLY AFTER ANALYSTS' INVESTMENT RATINGS STARBUCKS GAINED 2 7/8 TO 39 3/8 AFTER MORGAN STANLEY INITIATED INVESTMENT COVERAGE OF THE SEATTLEBASED COFFEE RETAILER WITH A BUY RATING COOKER RESTAURANTS DROPPED 3/8 TO 21 1/4 AFTER JC BRADFORD DOWNGRADED ITS SHORTTERM RATING TO ACCUMULATE FROM BUY THE ANALYST BARRY STOUFFER SAID THAT DESPITE NEGATIVE SAMESTORE SALES RECENTLY HIS LONGTERM RATING ON THE FULLSERVICE RESTAURANT CHAIN REMAINS BUY TYSON FOODS DROPPED 1 3/8 TO 25 1/4 AFTER PRUDENTIAL SECURITIES LOWERED ITS RATING ON THE POULTRY SEAFOOD AND BEEF PRODUCER TO HOLD FROM BUY THE FOOD INDUSTRY WASN'T THE ONLY SECTOR TO MOVE ON ANALYSTS' OPINIONS ENVOY CORP JUMPED 1 TO 14 1/4 AFTER ALEX BROWN & SONS RAISED ITS INVESTMENT RATING ON THE TRANSACTION PROCESSING SERVICES PROVIDER TO BUY FROM HOLD PAINEWEBBER RAISED ITS RATING OF THOMAS NELSON PUBLISHERS TO BUY FROM ATTRACTIVE SAYING THE BIBLE PUBLISHER'S SHARE PRICE HAS INCHED DOWN RECENTLY THOMAS NELSON GAINED 1/4 TO 15 1/4 KENDALL SQUARE RESEARCH JUMPED 1 3/4 TO 20 3/4 SHARES HAVE CLIMBED SINCE KENDALL SAID ON TUESDAY THAT IT HAS ENTERED INTO A FIVEYEAR PACT TO SELL A COMPUTER TO AMR CORP PARENT OF AMERICAN AIRLINES CENTERBANK CLIMBED 3/4 TO 9 7/8 THE WATERBURY CONN SAVINGS AND LOAN SAID IT AGREED TO SELL 266 MILLION IN TROUBLED RESIDENTIAL REAL ESTATE LOANS EAGLE HARDWARE & GARDEN SURGED 2 3/4 TO 21 1/8 THE WAREHOUSE HOME CENTER COMPANY SAID NET INCOME FOR THE FOURTH QUARTER ENDING JAN 29 WAS 11 CENTS A SHARE UP FROM TWO CENTS A YEAR AGO 9303120180 930312 WHO'S NEWS THQ INC THQ INC CALABASAS CALIF BRIAN J FARRELL 39YEAROLD EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER WAS ELECTED A DIRECTOR INCREASING THE BOARD TO SIX THE COMPANY MAKES INTERACTIVE ENTERTAINMENT SOFTWARE AND DEVELOPS AND MARKETS TRADITIONAL TOYS AND GAMES 9303120179 930312 WHO'S NEWS COMPTEK RESEARCH INC COMPTEK RESEARCH INC BUFFALO NY VICTOR RICE 52 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF VARITY CORP ALSO BASED HERE WAS NAMED A DIRECTOR INCREASING THE BOARD TO SEVEN MEMBERS COMPTEK MAKES ELECTRONIC HARDWARE AND SOFTWARE SYSTEMS FOR THE GOVERNMENT AND FOR INDUSTRIAL MARKETS 9303120178 930312 WHO'S NEWS HOLNAM INC HOLNAM INC DUNDEE MICH MARC R VON WYSS 63 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE WILL RETIRE NEXT MARCH FROM THIS MAKER OF CONSTRUCTION PRODUCTS A SUCCESSOR HASN'T BEEN NAMED 9303120177 930312 WHO'S NEWS SEISMED INSTRUMENTS INC SEISMED INSTRUMENTS INC MINNEAPOLIS DANIEL E MCNULTY 50YEAROLD FORMER CHIEF EXECUTIVE OFFICER OF ACOUSTIC IMAGING CORP WAS NAMED CHIEF EXECUTIVE OFFICER OF THIS MAKER OF NONINVASIVE DIAGNOSTIC INSTRUMENTS USED IN CARDIOVASCULAR APPLICATIONS SUCCEEDING SANDRA J HOLLENHORST 40 WHO CONTINUES AS PRESIDENT THE COMPANY SAID MR MCNULTY'S AGREEMENT WITH TH COMPANY HAS AN INITIAL TERM OF THREE MONTHS AND MAY BE RENEWED BY MUTUAL AGREEMENT 9303120176 930312 WHO'S NEWS UNIVERSAL HEIGHTS INC UNIVERSAL HEIGHTS INC HOLLYWOOD FLA MICHAEL PIETRANGELO 50 YEARS OLD WAS NAMED A DIRECTOR OF THE SOUVENIRPRODUCTS MAKER MR PIETRANGELO IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CLEO INC THE GIFTWRAP MANUFACTURING UNIT OF GIBSON GREETINGS INC IN CINCINNATI HIS APPOINTMENT EXPANDS THE BOARD'S SIZE TO EIGHT MEMBERS 9303120175 930312 WHO'S NEWS BMR FINANCIAL GROUP INC BMR FINANCIAL GROUP INC ATLANTA PETER S MAHER 48 YEARS OLD WAS CHOSEN AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS BANK HOLDING COMPANY HE SUCCEEDS JAMES L GREENE 58 WHO SAID HE WILL RETIRE FROM THE POSTS MARCH 19 TO PURSUE PERSONAL INTERESTS MR MAHER WHO HAS BEEN A BMR DIRECTOR SINCE 1986 MOST RECENTLY SERVED AS AN INVESTMENT ADVISER WITH ROCKEFELLER & CO IN NEW YORK MR GREENE WILL CONTINUE AS A DIRECTOR 9303120174 930312 WHO'S NEWS TOYS R US INC TOYS R US INC PARAMUS NJ LOU LIPSCHITZ VICE PRESIDENT FINANCE AND TREASURER WAS NAMED SENIOR VICE PRESIDENT FINANCE AND GIVEN THE ADDITIONAL TITLE OF CHIEF FINANCIAL OFFICER A NEW POST JON KIMMINS ASSISTANT TREASURER WAS NAMED VICE PRESIDENT AND TREASURER SUCCEEDING MR LIPSCHITZ IN ADDITION A NUMBER OF OTHER VICE PRESIDENTS OF THIS TOY RETAILER WERE NAMED SENIOR VICE PRESIDENTS WITH THE SAME RESPONSIBILITIES THEY ARE SANFORD BOLLINGER MERCHANDISE PLANNING AND ALLOCATION DENNIS HEALEY INFORMATION SYSTEMS MICHAEL MADDEN DISTRIBUTION TOM REINEBACH OPERATIONS DEVELOPMENT ERNEST SPERANZA ADVERTISING AND MARKETING AND JEFFREY WELLS HUMAN RESOURCES 9303120173 930312 FUTURES REGULATOR TO FORCE FIRMS TO TAPE SALES CALLS WASHINGTON THE NATIONAL FUTURES ASSOCIATION IN AN EFFORT TO DETER FIRMS FROM HIRING CROOKED SALES PEOPLE SAID IT WILL REQUIRE SOME OF ITS MEMBERS TO TAPE RECORD CALLS TO NEW CUSTOMERS THE RULE WILL AFFECT FIRMS THAT HIRE PEOPLE WHO HAD WORKED FOR FIRMS THAT WERE SHUT DOWN BY EITHER THE NFA OR THE COMMODITY FUTURES TRADING COMMISSION IF SUCH PEOPLE ACCOUNT FOR 25 OR MORE OF A FIRM'S SALES FORCE THE FIRM WILL BE REQUIRED TO TAPE ALL SOLICITATIONS TO NEW CUSTOMERS ROBERT WILMOUTH PRESIDENT OF THE NFA WHICH IS THE SELFREGULATORY ARM OF THE FUTURES INDUSTRY SAID ABOUT 23 FIRMS WILL BE AFFECTED THE TAPES WILL BE KEPT ON FILE FOR SIX MONTHS DAN ROTH GENERAL COUNSEL FOR THE NFA SAID REGULATORS HOPE THE KNOWLEDGE THAT CALLS ARE BEING RECORDED WILL DETER SALES PEOPLE FROM MAKING OUTLANDISH PROMISES AND FROM MISLEADING CUSTOMERS IF NOT HE SAID THE TAPES WILL PROVIDE THE NFA AND THE CFTC WITH AMMUNITION AGAINST THEIR EMPLOYERS THESE REGULATIONS WILL EITHER FORCE THESE FIRMS TO COME INTO COMPLIANCE OR PUT THEM OUT OF BUSINESS MR ROTH SAID THE PLAN HAS WON THE SUPPORT OF STATE REGULATORS AND CONSUMER GROUPS IN A LETTER LAST YEAR TO THE CFTC THE CONSUMER FEDERATION OF AMERICA SAID THAT SALES PEOPLE WITH FRAUDRIDDLED HISTORIES ARE THE PRIMARY SOURCE OF TELEMARKETING FRAUD IN THE FUTURES INDUSTRY 9303120172 930312 TECHNOLOGY & HEALTH US INFANT DEATH RATE FELL TO RECORD LOW IN '90 THE US INFANT MORTALITY RATE IN 1990 WAS THE LOWEST EVER RECORDED AS A RESULT OF IMPROVED MEDICAL INTERVENTION IN TREATING BREATHING AILMENTS ACCORDING TO A STUDY BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN 1990 THE MOST RECENT YEAR FOR WHICH DATA WAS AVAILABLE 92 BABIES DIED OUT OF EVERY 1000 LIVE BIRTHS COMPARED WITH 98 DEATHS FOR EVERY 1000 BIRTHS IN 1989 A 6 DROP THAT COMPARES TO 3 ANNUAL DECLINES IN INFANT MORTALITY IN THE REST OF THE 1980S STILL THE MORTALITY RATE FOR BLACK INFANTS DID NOT IMPROVE AS MUCH AS THE RATE FOR WHITE INFANTS THE IMPROVEMENT IS ATTRIBUTED TO WIDER USE OF EXOGENOUS SURFACTANTS A CLASS OF DRUGS THAT HELPS PREMATURE BABIES BREATHE BETTER AND CUTS DEATHS FROM RESPIRATORY DISTRESS SYNDROME THIS IS AN IMPROVEMENT IN THE TREATMENT OF SICK LOW BIRTHWEIGHT BABIES SAID MARIAN MACDORMAN A STATISTICIAN FOR THE NATIONAL CENTER OF HEALTH STATISTICS AT THE CDC THIS IS INTERVENTION NOT PREVENTION WE'RE STILL NOT ADDRESSING THE PROBLEM OF PRENATAL CARE 9303120171 930312 INTERNATIONAL SOUTH KOREAN EXECUTIVE PARK STEPS DOWN AT POSCO SEOUL SOUTH KOREA PARK TAE JOON THE PATRIARCH OF ONE OF SOUTH KOREA'S MOST SUCCESSFUL COMPANIES SUBMITTED HIS RESIGNATION AS HONORARY CHAIRMAN OF POHANG IRON & STEEL CO BETTER KNOWN AS POSCO A COMPANY OFFICIAL SAID THE MOVE CAPPED WEEKS OF RUMORS THAT THE 65YEAROLD INDUSTRIALISTTURNED POLITICIAN WOULD BE FORCED TO STEP DOWN IN THE WAKE OF A CORPORATE TAX AUDIT BY THE GOVERNMENT WHICH CONTROLS MORE THAN HALF OF POSCO'S STOCK ALTHOUGH GOVERNMENT OFFICIALS SAY THE AUDIT IS ROUTINE NEWSPAPERS HERE HAVE HINTED THAT COMPANY FUNDS WERE DIVERTED TO FURTHER MR PARK'S POLITICAL CAREER THE PRACTICE IS COMMON IN SOUTH KOREA AND LAWS PROHIBITING IT ARE VAGUE WHY WOULD THE GOVERNMENT GO AFTER THE MAN WHO RUNS THE WORLD'S THIRDLARGEST STEEL PRODUCER AND ONE OF THE COUNTRY'S MOST PROMINENT SUCCESS STORIES STEEL EXECUTIVES ANALYSTS AND POLITICAL OBSERVERS SAY THE ANSWER IS SIMPLE HE BACKED THE WRONG MAN FOR PRESIDENT THIS THING HAS TO DO WITH THE FACT THAT PARK WAS A SENIOR OFFICIAL IN THE RULING PARTY AND HE DIDN'T SUPPORT KIM YOUNG SAM WHO WON IN THE DECEMBER ELECTION SAYS KIM YONG KOOK AN ANALYST FOR WI CARR FAR EAST LTD A BROKERAGE FIRM MR PARK OFFICIALLY BROKE RANKS WITH MR KIM A FORMER DISSIDENT LATE LAST YEAR AND THREATENED TO BECOME A CANDIDATE IN THE END LIKE MANY SOUTH KOREAN BUSINESSMEN HE BACKED CHUNG JU YUNG FOUNDER AND CHAIRMAN OF THE HYUNDAI BUSINESS GROUP 9303120170 930312 WASHINGTON WATER TO CALL BONDS SPOKANE WASH WASHINGTON WATER POWER CO SAID IT PLANS TO REDEEM THE ENTIRE 80 MILLION OF ITS 925 SERIES FIRSTMORTGAGE BONDS DUE DEC 1 2016 THE BONDS WILL BE REDEEMED APRIL 13 AT THE GENERAL REDEMPTION PRICE OF 10648 OF THEIR PRINCIPAL AMOUNT 9303120169 930312 TECHNOLOGY DNA RESEARCHER WATSON TO HEAD BIOLOGY INSTITUTE COLD SPRING HARBOR NY JAMES D WATSON THE CODISCOVERER OF THE STRUCTURE OF DNA WILL BECOME PRESIDENT OF THE COLD SPRING HARBOR LABORATORY THE BASIC BIOLOGY RESEARCH INSTITUTION HERE THAT HE HAS DIRECTED SINCE 1968 SUCCEEDING DR WATSON AS DIRECTOR OF THE LABORATORY WILL BE BRUCE STILLMAN AN AUSTRALIANBORN MOLECULAR GENETICIST WHO CURRENTLY IS THE ASSISTANT DIRECTOR AS DIRECTOR DR STILLMAN WILL BE IN CHARGE OF THE LABORATORY'S SCIENTIFIC ACTIVITIES WHILE DR WATSON AS PRESIDENT WILL OVERSEE LABORATORY POLICY THE CHANGES WILL TAKE PLACE JAN 1 IT WAS 40 YEARS AGO THIS MONTH THAT DR WATSON THEN A 25YEAROLD BIOLOGIST AND A YOUNG BRITISH PHYSICIST FRANCIS CH CRICK DISCOVERED THAT THE MOLECULES THAT COMPOSED DNA THE GENETIC MATERIAL OF ALL LIVING MATTER ARE ARRANGED IN A SPIRAL LADDER SHAPE CALLED A DOUBLE HELIX THE DISCOVERY OPENED THE BIOLOGICAL AND GENETIC REVOLUTION NOW UNDER WAY DR WATSON WHO WILL TURN 65 THIS YEAR IS CREDITED WITH BUILDING THE COLD SPRING HARBOR LABORATORY FROM AN OBSCURE GENETICS RESEARCH FACILITY TO A MOLECULAR BIOLOGY LABORATORY OF WORLD RENOWN 9303120168 930312 WHO'S NEWS GULFSTREAM AEROSPACE SELECTS BREIDENBACH FOR TWO TOP POSTS NEW YORK GULFSTREAM AEROSPACE CORP HIRED A GENERAL ELECTRIC CO EXECUTIVE FRED A BREIDENBACH AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE BUSINESS JET AIRCRAFT COMPANY EFFECTIVE APRIL 1 MR BREIDENBACH 46 YEARS OLD HAD BEEN VICE PRESIDENT AND GENERAL MANAGER OF GE'S 3200EMPLOYEE GOVERNMENT ELECTRONIC SYSTEMS DIVISION IN THE NEW POSTS MR BREIDENBACH SUCCEEDS WILLIAM C LOWE 52 WHO REMAINS CHIEF EXECUTIVE OFFICER AND BECOMES CHAIRMAN ON MAY 1 IN THAT NEW POSITION MR LOWE SUCCEEDS ALLEN E PAULSON 70 WHO BECOMES CHAIRMAN EMERITUS AND REMAINS A DIRECTOR MR BREIDENBACH ALSO WILL BE ELECTED A DIRECTOR INCREASING THE BOARD'S SIZE TO 12 GULFSTREAM WAS ACQUIRED IN 1990 BY INVESTMENT PARTNERSHIP FORSTMANN LITTLE & CO FROM CHRYSLER CORP THEODORE J FORSTMANN SENIOR PARTNER CALLED MR BREIDENBACH A STRONG HANDSON EXECUTIVE WITH SOLID OPERATING EXPERIENCE IN AREAS DIRECTLY RELEVANT TO GULFSTREAM'S BUSINESS MR BREIDENBACH CALLED THE APPOINTMENT A SUPERB ENTREPRENEURIAL OPPORTUNITY IN WHICH HE CAN USE STRATEGIES EMPLOYED AT GE SUCH AS CYCLETIME REDUCTION QUICK MARKET INTELLIGENCE AND SENSIBLE COST CONTROL FORSTMANN LITTLE INJECTED AN ADDITIONAL 250 MILLION INTO GULFSTREAM LAST AUGUST AND PURCHASED A 31 INTEREST FROM MR PAULSON THE FOUNDER LAST APRIL A DISSAPPOINTING RECEPTION BY INVESTORS FORCED GULFSTREAM TO WITHDRAW A PROPOSED 100 MILLION INITIAL PUBLIC STOCK OFFERING 9303120167 930303 REVIEW & OUTLOOK EDITORIAL BARTLETT'S UNFAMILIAR QUOTATIONS IN 1983 AN AMERICAN PRESIDENT DESCRIBED THE SOVIET UNION WITH RARE STRAIGHTFORWARDNESS AS AN EVIL EMPIRE WORDS THAT WENT AROUND THE WORLD LIKE A SHOT OF MORAL CANDOR AND THAT THE WORLD HAS NEVER FORGOTTEN NEVERTHELESS NO ONE WILL BE ABLE TO FIND THOSE LINES UTTERED BY RONALD REAGAN IN THE NEWEST EDITION OF BARTLETT'S FAMILIAR QUOTATIONS NEITHER WILL THEY BE ABLE TO FIND ANY OF HIS OTHER MEMORABLE PUBLIC UTTERANCES THE NEW EDITOR OF BARTLETT'S BIOGRAPHER JUSTIN KAPLAN SEEMS TO HAVE DECIDED THAT MR REAGAN SAID LITTLE WORTH NOTING IN THE COURSE OF HIS LONG PRESIDENCY INCLUDING THIS EXTRAORDINARY PREDICTION IN THE EVIL EMPIRE SPEECH I BELIEVE THAT COMMUNISM IS ANOTHER SAD BIZARRE PAGE IN HUMAN HISTORY WHOSE LAST PAGES ARE EVEN NOW BEING WRITTEN HE IS REPRESENTED IN BARTLETT'S BY JUST THREE QUOTATIONS APPARENTLY CHOSEN TO ELIMINATE ANY SUGGESTION THAT RONALD REAGAN EVER HAD ANYTHING SERIOUS TO SAY TO THE NATION HE LED SO SUCCESSFULLY OR TO THE FREE WORLD WHICH ADMIRED HIM NO LESS THAN DID HIS COUNTRYMEN THE EMINENTLY QUOTABLE GEORGE ORWELL WHO DESCRIBED HOW HISTORY CAN GET TOSSED DOWN THE MEMORY HOLE WOULD HAVE RECOGNIZED THE PROCESS AND THE PRODUCT IN THE NEW EDITION OF BARTLETT'S THERE ARE AS THE HERITAGE FOUNDATION'S ADAM MEYERSON WAS THE FIRST TO NOTICE NO LESS THAN SIX QUOTES FROM PRESIDENT JIMMY CARTER WHICH MR KAPLAN DEEMED MEMORABLE ENOUGH FOR INCLUSION EVEN THE NOT NOTABLY ARTICULATE GEORGE BUSH MERITED MORE QUOTATIONS IN THE NEW BARTLETT'S THAN DID THE PRESIDENT KNOWN FOR GOOD REASON AS THE GREAT COMMUNICATOR OF THE THREE QUOTATIONS MR KAPLAN DID SELECT AS THE MOST MEMORABLE OF MR REAGAN'S EIGHTYEAR PRESIDENCY ONE DESCRIBES REPUBLICANS AS THE PARTY THAT WANTS TO SEE AN AMERICA IN WHICH PEOPLE CAN STILL GET RICH ANOTHER SAYS THAT PEOPLE IN AMERICA AREN'T STARVING BECAUSE THE COUNTRY LACKS FOOD THE THIRD COMPARES GOVERNMENT WITH A BABY WITH A BIG APPETITE AT ONE END AND NO RESPONSIBILITY AT THE OTHER THE TONE OF THESE QUOTATIONS AND THE REASON THAT THEY AND NO OTHERS ARE INCLUDED IS TOO OBVIOUS TO BELABOR MR KAPLAN TELLS US NONETHELESS THAT HE WAS GUIDED IN HIS SELECTIONS SOLELY BY HIS NOTION OF THE SORT OF LINES THAT LIVED IN THE POPULAR MEMORY AND THAT PEOPLE ASSOCIATED WITH THE SPEAKER IN EXPLAINING WHY RONALD REAGAN'S REMARKABLE COMMENTS PREDICTING THE COLLAPSE OF COMMUNISM AND ON ECONOMIC AND SOCIAL FREEDOM DIDN'T MERIT INCLUSION MR KAPLAN WENT ON TO SAY THAT SUCH COMMENTS WERE NOT THE KIND THAT PEOPLE WOULD REMEMBER WE SUSPECT THERE ARE A LOT OF PEOPLE IN NEWLY LIBERATED EASTERN EUROPE WHO WOULDN'T AGREE WITH MR KAPLAN'S STANDARD OF WHAT MAKES FOR MEMORABLE QUOTATIONS IN MIND WE TURNED TO CERTAIN QUOTATIONS OF PRESIDENT CARTER NOW IMMORTALIZED IN BARTLETT'S TO BE SURE WE FOUND THERE THE FAMOUS LINES ABOUT LUST AND ADULTERYINTHEHEART THEN THERE WERE THE LINES FROM A SPEECH TO THE WOMEN'S AGENDA CONFERENCE WHERE MR CARTER SAYS THE FIRST STEP IN PROVIDING ECONOMIC EQUALITY FOR WOMEN IS TO ENSURE A STABLE ECONOMY IN WHICH EVERY PERSON WHO WANTS TO WORK CAN WORK CAN IT BE MR KAPLAN'S CONTENTION THAT THIS IS THE SORT OF PRESIDENTIAL PROSE THAT IS DISTINCTIVE AND THAT WILL BE REMEMBERED AS CO SAY WITH RONALD REAGAN'S NATIONS DO NOT DISTRUST EACH OTHER BECAUSE THEY ARE ARMED THEY ARE ARMED BECAUSE THEY DISTRUST EACH OTHER MR KAPLAN INFORMED US BY WAY OF FURTHER EXPLANATION OF HIS OMISSIONS THAT IN HIS VIEW VIRTUALLY EVERYTHING RONALD REAGAN SAID WAS ULTIMATELY DERIVED FROM THE MOVIES THE NOTION OF MR REAGAN AS AN ACTOR MASQUERADING AS A LEADER IS OF COURSE A FAVORITE LIBERAL FANTASY OF ALL THOSE ELITES WHO HAVE TO THIS DAY NEVER BEEN ABLE TO FORGIVE RONALD REAGAN HIS SUCCESS HIS PRINCIPLES OR HIS POPULARITY THE EDITOR OF BARTLETT'S WHICH IS PUBLISHED BY LITTLE BROWN & CO ACKNOWLEDGES THAT AS A LIFELONG DEMOCRAT HE DIDN'T THINK MUCH OF MR REAGAN BUT MAINTAINS NONETHELESS THAT SUCH FEELINGS HAD NOTHING TO DO WITH HIS EDITORIAL DECISIONS STILL WE DOUBT THAT MR KAPLAN CAN FIND ANYWHERE IN THE MOVIES THE SOURCE OF THE COMMENT RONALD REAGAN MADE IN BERLIN IN 1987 WHICH RESONATED THROUGHOUT THE EVIL EMPIRE AS IT DID IN THE WORLD AT LARGE GENERAL SECRETARY GORBACHEV IF YOU SEEK PEACE IF YOU SEEK PROSPERITY FOR THE SOVIET UNION IF YOU SEEK LIBERALIZATION COME HERE TO THIS GATE MR GORBACHEV OPEN THIS GATE MR GORBACHEV TEAR DOWN THIS WALL NO READER OF BARTLETT'S WILL FIND THAT IN THE 16TH EDITION EITHER SEE RELATED LETTER LETTERS TO THE EDITOR DON'T TAKE THE WORDS RIGHT OUT OF HIS MOUTH WSJ MARCH 11 1993 9302250120 9303120166 930303 WANING CAMPAIGN GREENPEACE IS BATTLING SLIDE IN CONTRIBUTIONS AND IN POLITICAL CLOUT ENVIRONMENTAL GROUP FACES INTERNAL SPLIT OVER WAY IT CAN REGAIN ITS SPARK THE COST OF EXTREME STANDS BY THOMAS M BURTON AND FRANCINE SCHWADEL STAFF REPORTERS OF THE WALL STREET JOURNAL ITS NAME EVOKES VIVID IMAGES YELLOW SPEEDBOATS SKIMMING THE HIGH SEAS TO THWART WHALING BOATS AND PARKACLAD ACTIVISTS SPRAYPAINTING FLUFFY WHITE SEAL PUPS TO DISCOURAGE FUR HUNTERS FOR TWO DECADES SUCH TACTICS HELPED GREENPEACE SAVE THE WHALES AND BABY SEALS AND KEEP ANTARCTICA FROM BECOMING A GARBAGE PIT IN ADDITION THE PUBLICITY HELPED GREENPEACE BECOME THE WORLD'S BESTKNOWN ENVIRONMENTAL ACTION GROUP BUT NOW IT FACES A TOUGHER RESCUE MISSION REINVIGORATING ITSELF SUDDENLY THE INTERNATIONAL ORGANIZATION WHICH IS BASED IN AMSTERDAM IS REELING FROM A SLUMP IN CONTRIBUTIONS IT HAS HAD TO CUT STAFF 15 CLOSE OFFICES CURTAIL CAMPAIGNS AND SHRINK ITS CRUCIAL US OPERATION BY 25 IN THE US POLITICAL ARENA ITS LOBBYING FORCE HAS LOST MUCH OF ITS ALREADYLIMITED CLOUT ON CAPITOL HILL AS ITS COLLEGESTYLE PRANKS ALIENATE MANY ENVIRONMENTAL ALLIES AND INTERNALLY A TUG OF WAR HAS INTENSIFIED OVER ITS FUTURE COURSE ONE FACTION IN GREENPEACE FAVORS MORE SCIENTIFIC RESEARCH MORE POLITICAL LOBBYING AND LESS CONFRONTATION THE KIND OF STUFF WE DID IN THE 1970S CANNOT JUST BE FRESHENED UP SAYS MATTI WUORI A 47YEAROLD FINNISH LAWYER WHO WAS THE INTERNATIONAL ORGANIZATION'S CHAIRMAN UNTIL JANUARY HE WAS OUSTED IN A BOARDROOM COUP THAT GREENPEACE OFFICIALS SAY WASN'T LINKED TO THE DISPUTES OVER TACTICS ALTHOUGH THEY ACKNOWLEDGE THAT SOME PEOPLE DISLIKED HIS BACKGROUND OF NOT HAVING PARTICIPATED IN ANY DIRECT ACTION PROTESTS GREENPEACE'S OTHER FACTION WHICH INCLUDES MUCH OF ITS STAFF IS MUCH MORE MILITANT IT FAVORS MORE NOT FEWER CLASHES WITH CORPORATIONS AND GOVERNMENTS OVER ENVIRONMENTAL ISSUES SUCH AS ITS BLOCKADE YESTERDAY OF A PLUTONIUMFUEL PLANT IN BELGIUM I'VE NEVER HEARD ANYONE SAY WE OUGHT TO GO MORE MAINSTREAM SAYS PETER BAHOUTH A TOP GREENPEACE US STAFFER MOREOVER THE INTERNATIONAL BODY'S NEW EXECUTIVE DIRECTOR PAUL GILDING A 34YEAROLD AUSTRALIAN HAS LONG ENGAGED IN CONFRONTATION TACTICS AND BARBARA DUDLEY WHO RAN A UNITARIAN CHURCH FOUNDATION AND HAS JUST BECOME THE US EXECUTIVE DIRECTOR STRONGLY FAVORS THE CURRENT MIX OF DIRECT ACTION AND RESEARCH GREENPEACE HAS A GREAT BIG IDENTITY CRISIS OVER TACTICS SAYS STEVE MCALLISTER FORMER DEPUTY DIRECTOR OF GREENPEACE US WHICH IS BASED IN WASHINGTON THERE ARE DEFINITELY TWO CAMPS SUCH DISCORD OFTEN ERUPTS AT ORGANIZATIONS AS THEY MATURE AND INITIAL TRIUMPHS FADE GREENPEACE PULLED OFF ITS MOST DARING EXPLOITS YEARS AGO ITS ANTIWHALING CAMPAIGN IN THE 1970S AND EARLY 1980S CULMINATED IN THE INTERNATIONAL WHALING COMMISSION'S 1982 VOTE TO OUTLAW COMMERCIAL WHALING SOME NATIONS CONTINUE LIMITED WHALING CALLING IT SCIENTIFIC RESEARCH AND NORWAY RECENTLY DECLARED ITS INTENTION TO RESUME THE HUNT BUT WHALING OVERALL IS DOWN SOME 99 THE CRUSADE AGAINST KILLING SEALS LED TO A WEST EUROPEAN BAN ON IMPORTED SEAL FUR IN 1983 GREENPEACE WAS FOUNDED IN VANCOUVER IN 1971 BY A DOZEN ACTIVISTS INCLUDING ANTIVIETNAM WAR PROTESTERS FROM THE US AIDED BY ITS EARLY SUCCESSES THE ORGANIZATION GREW TO BE THE WORLD'S SECONDLARGEST ENVIRONMENTAL GROUP AFTER THE WORLD WIDE FUND FOR NATURE IT OPERATES IN 30 COUNTRIES AND HAS 1000 EMPLOYEES AND FIVE MILLION CONTRIBUTORS CELEBRITIES RANGING FROM MOVIE DIRECTOR OLIVER STONE AND MODEL CHRISTIE BRINKLEY TO MEMBERS OF ROCK GROUPS SUCH AS THE GRATEFUL DEAD HAVE PROMOTED ITS CAUSES BUT TIMES HAVE CHANGED GREENPEACE DOESN'T HAVE TO HANG AN ANTINUCLEAR BANNER FROM THE 15TH STORY OF CHICAGO'S SEARS TOWER AS IT DID RECENTLY TO AROUSE ENVIRONMENTAL CONCERN TODAY GRADESCHOOL PUPILS ARE STUDYING ECOLOGY COMMUNITIES ARE RECYCLING AND AN ARDENT ENVIRONMENTALIST AL GORE HAS BECOME VICE PRESIDENT OF THE US MOREOVER GREENPEACE'S CORPORATE TARGETS ARE SAVVIER IN LATE 1990 30 GREENPEACE AND OTHER ACTIVISTS SAILED A SLOOP UP THE HUDSON RIVER TO PROTEST PLANS BY BROWNINGFERRIS INDUSTRIES INC TO BUILD A GARBAGE INCINERATOR ALONG THE RIVER THE PROTESTERS INTENDED TO MARCH ASHORE AND AS TV CAMERAS ROLLED PLANT A SYMBOLIC TREE ON THE SITE BUT ON ARRIVAL THEY FOUND THAT THE COMPANY HAD HUNG A BANNER WELCOMING THEM AND HAD PLANTED ITS OWN TREE COMPANY OFFICIALS OFFERED THEM CIDER AND APPLES WHILE DEFENDING THE INCINERATOR ON CAMERA BROWNINGFERRIS WITH MINOR CHANGES IS PROCEEDING WITH THE PROJECT NOW GREENPEACE HAS A NEW AGENDA ONE FAR MORE SWEEPING THAN ITS ORIGINAL GOALS OF STOPPING WHALEKILLING AND NUCLEAR TESTING UNDER IT THE WORLD WOULD CHANGE RADICALLY GONE OR SEVERELY CURTAILED WOULD BE OIL AND NUCLEAR ENERGY COALPOWERED GENERATORS BIG DAMS LARGESCALE LOGGING DRIFTNET FISHING LEADED GASOLINE AND USE OF CHLORINE MERCURY AND PESTICIDES OR ANY TOXIC CHEMICALS AT ALL GREENPEACE FAVORS ALTERNATIVE ENERGY SOURCES SUCH AS WIND SOLAR GEOTHERMAL AND WAVE POWER IT WANTS WOOD CERAMICS AND GLASS TO REPLACE PLASTICS MADE WITH CHLORINE IT IS CAMPAIGNING AGAINST NEW INCINERATORS AND GARBAGE DUMPS AT LEAST UNTIL MUCH MORE MATERIAL IS RECYCLED AND COMPOSTED AND IT IS FIGHTING A PLANNED HAZARDOUSWASTE INCINERATOR IN EAST LIVERPOOL OHIO HOWEVER DRAMATIZING THIS AGENDA ISN'T AS EASY AS SHOWING TV PICTURES OF SLAUGHTERED SEALS IN RECENT YEARS MOST OF GREENPEACE'S MAIN ACCOMPLISHMENTS HAVE COME FROM LOWERPROFILE WORK LOBBYING SCIENTIFIC RESEARCH AND PRODUCING REPORTS AND FILMS LOBBYING AND RESEARCH FOR INSTANCE HELPED PERSUADE EUROPEAN NATIONS TO PHASE OUT BY 1995 THE DUMPING OF INDUSTRIAL POLLUTANTS INTO THE NORTH SEA MEDITERRANEAN AND NORTH ATLANTIC GREENPEACE ALSO HAS SUCCESSFULLY LOBBIED MAJOR NATIONS TO PREVENT MINING AND OTHER DEVELOPMENT IN ANTARCTICA THE MORE VISIBLE ANTICS FAVORED BY THE GROUP'S CONFRONTATION CAMP HAVE BEEN FAR LESS SUCCESSFUL LATELY ACTIVISTS ACHIEVED LITTLE BY SETTING OFF LAUGH BOXES AT A CONGRESSIONAL HEARING LAST YEAR TO PROTEST A HAZARDOUSWASTE BILL AND A SIREN AT A RECENT COPENHAGEN CONFERENCE ON ATMOSPHERIC OZONE AND AT LAST JUNE'S EARTH SUMMIT IN RIO DE JANEIRO GREENPEACE UNFURLED A BANNER EMBLAZONED WITH THE WORD SOLD ON SUGAR LOAF THE CITY'S SCENIC MOUNTAIN THE GROUP WANTED TO IMPLY THAT THE SUMMIT PARTICIPANTS HAD SOLD OUT TO BUSINESS INTERESTS BUT THE BANNER'S MESSAGE DIDN'T SEEM VERY CLEAR GREENPEACE IS GOING TO HAVE TO CHANGE THE WAY THEY BEHAVE OR BECOME IRRELEVANT SAYS BRYN JONES A FORMER GREENPEACE UNITED KINGDOM CHAIRMAN SOME OF ITS STANDS ARE SO ABSOLUTIST THAT ON CAPITOL HILL THEY ARE MORE AND MORE OFTEN IGNORED IN WASHINGTON THE COMMON VIEW IS THAT THEY ARE LARGELY IRRELEVANT TO THE POLICYMAKING PROCESS SAYS KEN MURPHY EXECUTIVE DIRECTOR OF THE ENVIRONMENTAL AND ENERGY STUDY INSTITUTE WHOSE BOARD INCLUDES CONGRESSMEN ENVIRONMENTALISTS AND BUSINESSPEOPLE IN 1991 GREENPEACE INFURIATED SOME CLOSE ALLIES IN CONGRESS OVER A BILL TO SHARPLY CURTAIL TOXICWASTE EXPORTS SOME AMERICAN COMPANIES SHIP SUCH INDUSTRIAL WASTE OVERSEAS WHERE MUCH OF IT ISN'T DISPOSED OF PROPERLY BUT RATHER THAN BACKING THE BILL'S SPONSORS STRONG ENVIRONMENTALISTS SUCH AS MICHIGAN'S REP JOHN CONYERS AND THENREP HOWARD WOLPE OKLAHOMA'S REP MIKE SYNAR AND ILLINOIS' REP JOHN PORTER GREENPEACE HELD OUT FOR A TOTAL BAN IT SENT MAILINGS TO THE FOUR LAWMAKERS' CONSTITUENTS ATTACKING THEM FOR ALLOWING US COMPANIES TO CONTINUE SENDING OUR WASTES TO FOREIGN COUNTRIES REP SYNAR COMMENTS GREENPEACE HAS AN ATTITUDE THAT THEY WANT TO GET IT ALL OR NOTHING SO USUALLY THEY GET NOTHING DEFENDING THE MAILINGS GREENPEACE'S MR BAHOUTH SAYS I WOULD HAVE PROBLEMS WITH THE ETHICS OF TAKING A WEAKER ENVIRONMENTAL STANCE MANY OTHER ENVIRONMENTALISTS SCIENTISTS AND GOVERNMENT OFFICIALS SAY GREENPEACE US ALSO HAS BEEN STRIDENT BUT NOT VERY EFFECTIVE ON THE ISSUE OF ATMOSPHERIC OZONE DEPLETION GREENPEACE ADVOCATES AN IMMEDIATE BAN ON PRODUCTION OF OZONEDEPLETING CHEMICALS SUCH AS CHLOROFLUOROCARBONS THE CFCS WHICH ARE USED IN AIR CONDITIONERS REFRIGERATORS AND SOLVENTS BREAK DOWN THE OZONE LAYER THAT PROTECTS THE EARTH FROM POTENTIALLY DANGEROUS ULTRAVIOLET RAYS GREENPEACE HAS STAGED FREQUENT DEMONSTRATIONS AT DU PONT CO THE WORLD'S LEADING CFC PRODUCER BUT MANUFACTURERS OF REFRIGERATION AND OTHER EQUIPMENT ARGUED THAT THEY NEEDED A TRANSITION PERIOD RATHER THAN AN IMMEDIATE BAN SO THAT THEY COULD ADAPT THEIR PRODUCTS TO USE CHEMICAL SUBSTITUTES MEANWHILE THE NATURAL RESOURCES DEFENSE COUNCIL AND FRIENDS OF THE EARTH HAVE BEEN THE PRIMARY ENVIRONMENTAL GROUPS ON OZONE DEPLETION IN THE US SAYS STEPHEN SEIDEL ACTING DIRECTOR OF THE EPA'S STRATOSPHERIC PROTECTION DIVISION THEY HAVE LED A NUMBER OF GROUPS IN SUCCESSFULLY LOBBYING THE US GOVERNMENT TO PUSH FOR AN INTERNATIONAL DEADLINE OF 1995 AFTER WHICH CFC PRODUCTION WOULD BE BANNED A LEADING SCIENTIST ON OZONE DEPLETION SHERWOOD ROWLAND OF THE UNIVERSITY OF CALIFORNIA AT IRVINE SAYS THE BALLGAME WAS OVER BEFORE GREENPEACE GOT INVOLVED GREENPEACE OFFICIALS RESPOND THAT THEIR US PROTESTS CONTRIBUTED TO A BAN ON OZONEDEPLETING CHEMICALS WHILE ITS INTERNAL STRUGGLE CONTINUES GREENPEACE ALSO IS FACING A FINANCIAL CRISIS THE GROUP ESCHEWS CORPORATE AND FOUNDATION GRANTS AND DEPENDS SOLELY ON INDIVIDUALS USUALLY 25 TO 50 DONATIONS GATHERED THROUGH MAILINGS AND DOORTODOOR BY COLLEGEAGE CANVASSERS WORKING ON RELATIVELY HIGH 40 COMMISSIONS CONTRIBUTIONS SOARED AFTER 1985 WHEN FRENCH INTELLIGENCE AGENTS BLEW UP THE RAINBOW WARRIOR THE GREENPEACE FLAGSHIP SENT TO DOCUMENT EFFECTS OF FRENCH AND US NUCLEAR TESTING IN THE SOUTH PACIFIC THE INTERNATIONAL ORGANIZATION'S REVENUE GREW RAPIDLY IN THE LATE 1980S BUT REVENUE GROWTH SLOWED IN 1991 AND TOTAL CONTRIBUTIONS SLUMPED 17 LAST YEAR WITH SOME JUSTIFICATION GREENPEACE BLAMES THE WEAK ECONOMIES OF THE US AND EUROPE FOR THE SLIPPAGE HOWEVER SEVERAL OTHER ENVIRONMENTAL AND PUBLICINTEREST GROUPS DID BETTER THAN GREENPEACE FROM 1990 THROUGH LAST YEAR DONATIONS HELD STEADY AT THE NATIONAL WILDLIFE FEDERATION AND US PUBLIC INTEREST RESEARCH GROUP AND ROSE AT THE NATURE CONSERVANCY SEA SHEPHERD CONSERVATION SOCIETY AND THE CENTER FOR MARINE CONSERVATION PAUL WATSON A FOUNDING GREENPEACE MEMBER WHO HEADS THE SEA SHEPHERD GROUP IN SANTA MONICA CALIF SUGGESTS THAT GREENPEACE'S DONATIONS FELL BECAUSE MOST OF ITS MAJOR VICTORIES ARE RECEDING INTO THE PAST THEY'RE REALLY FLOGGING THE ORIGINAL MYTH TO DEATH HE SAYS THE PUBLIC RESPONDS TO RESULTS SOME GREENPEACE OFFICIALS ADD THAT ITS OPPOSITION TO THE PERSIAN GULF WAR ALSO HURT DONATIONS THE REVENUE DROP FOR GREENPEACE WORLDWIDE TO ABOUT 139 MILLION LAST YEAR FROM 167 MILLION IN 1991 IS ALARMING TO ITS MEMBERS ESPECIALLY SINCE THE ORGANIZATION EXPANDED RAPIDLY IN THE BOOM DAYS GREENPEACE SPENT LOTS OF MONEY ON MEETINGS ALL OVER THE WORLD PAYING FOR SCORES OF STAFFERS TO TRAVEL TO PLACES SUCH AS MADRID TO DISCUSS TOXIC CHEMICALS AND DUBLIN TO DISCUSS ANTINUCLEAR EFFORTS THE INTERNATIONAL HEADQUARTERS STAFF GREW FROM A THREEMAN OPERATION A DECADE AGO TO ABOUT 100 PEOPLE WORKING IN A LANDMARK ART DECO BUILDING IN AMSTERDAM THE CULTURE WAS THAT THE MONEY WAS UNSTOPPABLE AND THERE WASN'T AN ACCOUNTING SYSTEM SAYS JUNIOR BRIDGE A FORMER SENIOR GREENPEACE US STAFFER THERE WERE LOTS OF PEOPLE WHO SHOULD HAVE BEEN MINDING THE STORE THE BOARD AND MANAGEMENT DIDN'T REALLY PUT ON THE BRAKES UNTIL THEY WERE IN TROUBLE IN RESPONSE STEPHEN D'ESPOSITO GREENPEACE US DEPUTY EXECUTIVE DIRECTOR SAYS THERE WAS AN ACCOUNTING SYSTEM GREENPEACE SPENT ITS MONEY AS IT WAS RECEIVED JUST AS ITS SUPPORTERS EXPECT NOW GREENPEACE IS STUCK WITH THE COST OF NEWLY OPENED OFFICES IN COUNTRIES SUCH AS THE CZECH REPUBLIC MEXICO AND TUNISIA AND OF A NEWLY PURCHASED OCEANGOING TUG COMPLETE WITH HELICOPTER PAD TO SAVE MONEY IT KEEPS TWO OF ITS EIGHT SHIPS IN PORT AND IS SELLING ONE OF THEM IN THE US GREENPEACE HAS SLASHED ITS ANNUAL BUDGET TO ABOUT 50 MILLION FROM A PROJECTED 70 MILLION AND CLOSED OFFICES IN BOSTON AND FORT LAUDERDALE FLA SEEKING TO REINVIGORATE THE ORGANIZATION SOME GREENPEACE OFFICIALS FAVOR A COMPROMISE STRATEGY PART CONFRONTATION PART SCIENTIFIC RESEARCH WITH THAT APPROACH GREENPEACE HAS HAD DRAMATIC SUCCESS IN GERMANY ONE OF THE COUNTRIES WHERE ITS FINANCES ARE RELATIVELY HEALTHY FOR YEARS GREENPEACE OPERATIVES WENT AROUND GERMANY PLUGGING PIPES THAT POURED WASTE WATER FROM PAPER PLANTS INTO RIVERS THE REASON CHLORINE BLEACHING OF PAPER WAS FOULING THE WATER WITH DIOXIN A CARCINOGEN THAT ACCORDING TO RECENT DATA MAY ALSO DAMAGE HUMAN REPRODUCTIVE AND IMMUNE SYSTEMS AND THAT GREENPEACE BELIEVES KILLS FISH BUT THE PAPERMAKERS LARGELY IGNORED THE PIPE PLUGGING THEN IN MARCH 1991 GREENPEACE STAFFERS DISTRIBUTED 300000 COPIES OF A MAGAZINE RESEMBLING THE GERMAN PUBLICATION DER SPIEGEL BUT PRINTED ON PAPER BLEACHED IN A PROCESS THAT DOESN'T PRODUCE DIOXIN THE MAGAZINE COVER PICTURED A FISH WITH LESIONS SUPPOSEDLY CAUSED BY DIOXIN BY PRINTING THE MAGAZINE GREENPEACE SHOWED THAT CHLORINE BLEACHING WASN'T NECESSARY SINCE THEN DER SPIEGEL AND ANOTHER GERMAN MAGAZINE STERN HAVE CUT BACK THEIR USE OF CHLORINEBLEACHED PAPER DER SPIEGEL SAYS GREENPEACE WASN'T THE REASON BUT STERN CREDITS THE GROUP'S WORK DIRECT ACTIONS HAVE BECOME A SWORD THAT LOSES POWER SAYS CHRISTOPH THIES A CHEMIST WHO HEADS THE GREENPEACE ANTICHLORINE CAMPAIGN THE NEW APPROACH MIXING CONFRONTATION AND SCIENCE HE ADDS IS THE LOGICAL NEXT STEP FOR GREENPEACE SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE OK HOW ABOUT YOU WSJ MARCH 11 1993 9303030020 9303120165 930312 WHO'S NEWS COASTAL'S BEATTY DROPS CANDIDACY FOR ENERGY POST BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MICHAEL BEATTY A COASTAL CORP EXECUTIVE WHO WAS IN LINE FOR A TOP POST AT THE ENERGY DEPARTMENT WITHDREW AMID CRITICISM OF THE COMPANY'S BUSINESS TIES TO LIBYA SEPARATELY COASTAL ANNOUNCED THAT MR BEATTY WILL RESIGN FROM ALL HIS POSITIONS AT THE COMPANY EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND A BOARD MEMBER THE ANNOUNCEMENT SAID HE INTENDS TO PRACTICE ENERGY LAW IN COLORADO WHERE HIS FAMILY LIVES IN A STATEMENT ISSUED YESTERDAY MR BEATTY SAID THAT THE WHITE HOUSE AND HE CONCLUDED THAT HE COULD BEST ADVANCE THE PRESIDENT'S ENERGY GOALS BY STAYING IN THE PRIVATE SECTOR CONSEQUENTLY I WILL NOT BE NOMINATED BY THE PRESIDENT FOR THE OFFICE OF DEPUTY SECRETARY DEPARTMENT OF ENERGY HIS STATEMENT SAID MR BEATTY'S WITHDRAWAL FURTHER SLOWS THE DEPARTMENT'S EFFORTS TO STAFF TOP POSITIONS SO FAR THE WHITE HOUSE HAS SUBMITTED ONLY TWO NAMES TO THE SENATE FOR SUBCABINET CONFIRMATION AT THE DEPARTMENT AND ENERGY SECRETARY HAZEL O'LEARY APPARENTLY DOESN'T HAVE A CANDIDATE TO REPLACE MR BEATTY MR BEATTY ORGANIZED EFFORTS TO WIN ENERGY COMPANY ENDORSEMENTS FOR MR CLINTON DURING THE PRESIDENTIAL CAMPAIGN AND WAS AN ENERGY ADVISER TO THE TRANSITION BEFORE BEING ALLBUTOFFICIALLY NAMED TO THE ENERGY DEPARTMENT'S NO 2 POST BUT THERE WERE GROWING EXPECTATIONS THAT MR BEATTY WOULD FACE TOUGH QUESTIONING DURING SENATE CONFIRMATION HEARINGS ABOUT COASTAL'S INVOLVEMENT WITH LIBYA ALTHOUGH COASTAL HASN'T BEEN CHARGED WITH BREAKING THE US EMBARGO AGAINST LIBYA THE COMPANY THROUGH A FOREIGN SUBSIDIARY IS A MINORITY PARTNER IN A LIBYANCONTROLLED OIL REFINERY IN GERMANY IN ADDITION A GRAND JURY IN HOUSTON HAS BEEN INVESTIGATING COASTAL'S DEALINGS WITH LIBYA IN RECENT WEEKS FAMILIES OF THE VICTIMS OF THE 1988 BOMBING OF PAN AM FLIGHT 103 LOBBIED AGAINST MR BEATTY AT THE WHITE HOUSE AND IN CONGRESS BECAUSE LIBYA HAS REFUSED TO TURN OVER TWO INTELLIGENCE AGENTS SUSPECTED OF INVOLVEMENT IN THE BOMBING ALTHOUGH THERE IS NO EVIDENCE OF WRONGDOING BY MR BEATTY HE HELD A HIGH POSITION AT THE HOUSTONBASED ENERGY CONCERN AND COASTAL CHAIRMAN OSCAR WYATT SAID LAST MONTH THAT THE COMPANY RELIED ON HIM FOR ADVICE ON EVERY CORPORATE MATTER THAT CAME UP 9303120164 930312 BUSINESS BRIEF VARITY IN 4TH QUARTER POSTS 48 MILLION NET COMPARED WITH LOSS VARITY CORP TAKING THREE UNUSUAL ITEMS EQUAL TO A 127 MILLION CHARGE AGAINST EARNINGS REPORTED NET INCOME OF 48 MILLION OR ONE CENT A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED JAN 31 A YEAR EARLIER THE COMPANY HAD A LOSS OF 1153 MILLION OR 480 A SHARE THE BUFFALO NY AUTO PRODUCTS AND FARM MACHINERY MAKER POSTED QUARTERLY OPERATING INCOME OF 31 MILLION COMPARED WITH AN OPERATING LOSS OF 58 MILLION A YEAR AGO SALES FELL 9 TO 8149 MILLION FOR THE FISCAL YEAR THE COMPANY REPORTED PROFIT OF 27 MILLION OR 32 CENTS A SHARE COMPARED WITH A LOSS OF 178 MILLION OR 787 A SHARE VARITY PREDICTED RESULTS FOR ITS CURRENT FISCAL YEAR SHOULD BE AHEAD OF THOSE OF THE YEAR JUST COMPLETED THE LATEST QUARTER'S UNUSUAL ITEMS WERE A 236 MILLION LOSS ASSOCIATED WITH THE SALE OF A UNIT IN ITS FARM EQUIPMENT GROUP A 173 MILLION GAIN FROM THE SALE OF A MAJORITY OWNERSHIP IN HAYES WHEELS AND A 64 MILLION EXTRAORDINARY LOSS FROM THE EARLY REDEMPTION OF DEBT VARITY'S MASSEY FERGUSON FARM EQUIPMENT UNIT WHICH ACCOUNTED FOR ABOUT ONETHIRD OF VARITY'S REVENUE HAD A QUARTERLY OPERATING LOSS OF 17 MILLION COMPARED WITH A LOSS OF 46 MILLION A YEAR EARLIER THE COMPANY SAID CONTINUED COSTCUTTING AND OTHER STEPS WILL PREVENT THE MONEYLOSING GROUP FROM BEING A DRAIN ON VARITY RESOURCES IN 1993 IT CAUTIONED HOWEVER THAT A CONTINUED SLUMP IN THE EUROPEAN FARMGEAR MARKET IS EXPECTED THE KELSEYHAYES AUTOMOTIVE PRODUCTS UNIT A MAKER OF ANTILOCK BRAKES REPORTED OPERATING INCOME OF 31 MILLION COMPARED WITH A YEARAGO 22 MILLION LOSS NORTH AMERICAN AUTOMOTIVE PRODUCTION SCHEDULES PARTICULARLY FOR LIGHT TRUCKS ARE WELL AHEAD OF A YEAR AGO WHICH SHOULD MEAN GAINS AT KELSEYHAYES VARITY SAID ALSO SALES OF ITS ANTILOCK BRAKES WILL INCREASE SIGNIFICANTLY IN 1993 9303120163 930312 ENHANCE FINANCIAL NET FELL 13 IN 4TH PERIOD ON BIGGER LOSS RESERVE NEW YORK ENHANCE FINANCIAL SERVICES GROUP INC REPORTED A 13 DECLINE IN FOURTHQUARTER EARNINGS ON A LARGER LOSS RESERVE ENHANCE PRIMARILY A REINSURER OF MUNICIPAL BONDS ALSO SAID IT INCREASED ITS QUARTERLY DIVIDEND 17 BUT INVESTORS FOCUSED MORE ON ENHANCE'S LOWER QUARTERLY RESULTS ENHANCE SHARES WERE QUOTED DOWN 1125 YESTERDAY AT 2350 IN LATE NEW YORK STOCK EXCHANGE TRADING THE COMPANY REPORTED QUARTERLY NET INCOME OF 78 MILLION OR 43 CENTS A SHARE DOWN FROM 9 MILLION OR 51 CENTS A SHARE IN THE 1991 QUARTER REVENUE WAS UP 35 TO 207 MILLION AS INCREASES IN EARNED PREMIUMS AND NET INVESTMENT INCOME WERE OFFSET BY LOWER REALIZED GAINS ON INVESTMENTS LOSSES AND LOSSADJUSTMENT EXPENSES WERE 39 MILLION COMPARED WITH 939000 A YEAR EARLIER ATTRIBUTABLE TO A LOSS RESERVE TAKEN FOR A COMMERCIAL REAL ESTATE SECURITY THE COMPANY INSURED INSURERS OF MUNICIPAL BONDS HAVE HAD A BOOMING BUSINESS AS STATES CITIES AND PUBLIC AUTHORITIES ISSUE NEW BONDS AND REFINANCE EXISTING DEBT TO TAKE ADVANTAGE OF LOW INTEREST RATES FOR 1992 NET WAS 376 MILLION OR 207 A SHARE COMPARED WITH 324 MILLION OR 185 A SHARE IN 1991 REVENUE ROSE 22 TO 852 MILLION AS PREMIUMS EARNED ROSE 26 ENHANCE'S DIVIDEND WAS INCREASED TO SEVEN CENTS A SHARE FROM SIX CENTS PAYABLE MARCH 26 TO SHARES OF RECORD MARCH 22 9303120161 930312 ALZA CORP TO SPIN OFF NEW FIRM TO HOLDERS IN FORM OF DIVIDEND PALO ALTO CALIF ALZA CORP SAID ITS BOARD APPROVED A SPECIAL DIVIDEND OF ONE UNIT OF ITS NEWLY FORMED THERAPEUTIC DISCOVERY CORP FOR EACH 10 SHARES OF ALZA CLASS A COMMON STOCK OF RECORD MAY 28 EACH UNIT WILL CONSIST OF ONE THERAPEUTIC DISCOVERY COMMON SHARE AND ONE WARRANT TO BUY ONEEIGHTH OF A SHARE OF ALZA'S CLASS A COMMON STOCK THE WARRANTS CAN BE EXERCISED AT 65 A SHARE THREE YEARS AFTER DISTRIBUTION AND WILL EXPIRE DEC 31 1999 THE COMPANY SAID ALZA SAID ABOUT 75 MILLION OF ITS CLASS A SHARES ARE OUTSTANDING SO 75 MILLION OF THE UNITS WILL BE DISTRIBUTED THE DISTRIBUTION WILL TAKE PLACE WITHIN TWO WEEKS OF THE RECORD DATE THE COMPANY SAID IT WILL SEEK A LISTING ON THE NATIONAL OVERTHECOUNTER MARKET FOR THE UNITS AFTER THREE YEARS ALZA SAID THE WARRANTS AND THE NEW COMPANY'S COMMON SHARES WILL BEGIN TRADING SEPARATELY ALZA SAID IT PLANS TO CAPITALIZE ITS NEW COMPANY WITH 250 MILLION IN CASH TDC WILL DEVELOP HUMAN PHARMACEUTICALS BY COMBINING ALZA'S DRUG DELIVERY SYSTEMS WITH DRUG COMPOUNDS THE PRODUCTS ARE EXPECTED TO BE LICENSED TO ALZA ALZA SAID IT WILL HAVE THE OPTION OF PURCHASING ALL TDC'S COMMON SHARES OUTSTANDING 9303120160 930312 MONEYFUND ASSETS ROSE BY 755 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE BY 755 BILLION IN THE WEEK ENDED WEDNESDAY TO 60131 BILLION FROM 59376 BILLION THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 625 RETAIL MONEYMARKET MUTUAL FUNDS FELL BY 2032 MILLION TO 39123 BILLION THE TRADE GROUP SAID ASSETS OF 389 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY FELL BY 2329 MILLION TO 30779 BILLION ASSETS OF 235 RETAIL TAXEXEMPT FUNDS ROSE BY 497 MILLION TO 8344 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEYMARKET FUNDS ROSE BY 776 BILLION TO 21007 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 223 TAXABLE MONEYMARKET FUNDS ROSE BY 786 BILLION TO 18725 BILLION ASSETS OF 51 TAXEXEMPT FUNDS FELL BY 1031 MILLION TO 2282 BILLION 9303120159 930312 WHO'S NEWS PROCTER & GAMBLE CO PROCTER & GAMBLE CO CINCINNATI PETER ELSING 50 YEARS OLD WAS NAMED REGIONAL VICE PRESIDENTJAPAN OF THIS CONSUMER PRODUCTS MAKER HE IS CURRENTLY VICE PRESIDENT AND GENERAL MANAGER ORAL CARE PRODUCTS AT PROCTER & GAMBLE USA HE SUCCEEDS RONALD PEARCE 50 WHOM THE COMPANY SAID IS LEAVING TO PURSUE OTHER INTERESTS JOHN H BESS 41 VICE PRESIDENT AND GENERAL MANAGER OF DISHWASHING PRODUCTS WILL ASSUME MR ELSING'S CURRENT POST 9303120158 930312 BUSINESS BRIEF CALGON CARBON CORP FIRSTQUARTER NET EXPECTED TO TRAIL ANALYSTS' FORECASTS CALGON CARBON CORP SAID IT EXPECTS FIRSTQUARTER EARNINGS TO BE BELOW INDUSTRY ANALYSTS' FORECASTS OF ABOUT 17 CENTS A SHARE BECAUSE OF SAGGING SALES IN JANUARY AND FEBRUARY IN THE YEAREARLIER QUARTER CALGON EARNED 66 MILLION OR 16 CENTS A SHARE THE PITTSBURGH PRODUCER OF CARBON PRODUCTS FOR PURIFICATION OF LIQUIDS AND GASES NOTED THAT ALL GEOGRAPHIC AREAS AND PRODUCT LINES HAVE SHOWN SLOW SALES FOR THE TWOMONTH PERIOD THERE IS SOME EVIDENCE OF STRENGTHENING DEMAND IN RECENT DAYS ALTHOUGH A CLEAR TREND HAS NOT YET BEEN ESTABLISHED THE COMPANY SAID IN A STATEMENT IT EXPECTS SALES REVENUE TO INCREASE IN SUBSEQUENT QUARTERS BECAUSE OF CONTRACTS FOR DELIVERY OF SUBSTANTIAL QUANTITIES OF ACTIVATED CARBON TO PUBLIC WATER SUPPLIERS OVER THE COURSE OF 1993 9303120157 930312 MINISCRIBE CHAIRMAN CHARGED WITH FRAUD IN COMPANY'S COLLAPSE DENVER QT WILES THE FORMER CHAIRMAN OF NOWDEFUNCT MINISCRIBE CORP WAS INDICTED ON FEDERAL SECURITIES AND WIRE FRAUD CHARGES OVER HIS ROLE IN THE COLLAPSE OF THE DISKDRIVE MAKER THE INDICTMENT FILED IN FEDERAL COURT HERE ALLEGES THAT MR WILES DEFRAUDED INVESTORS BY ALLOWING FALSE AND MISLEADING MINISCRIBE FINANCIAL STATEMENTS TO BE ISSUED TO THE PUBLIC AND THE SECURITIES AND EXCHANGE COMMISSION HE IS ALSO ACCUSED OF COVERING UP THE DECEPTION BY DIRECTING SUBORDINATES TO SIGN FALSE FINANCIAL STATEMENTS AND TO DESTROY A MEMO REPORTING AN INVENTORY SHORTFALL OF MILLIONS OF DOLLARS THE INDICTMENT FURTHER CHARGES THAT MR WILES PROFITED FROM THE SCHEME BY SELLING 150000 SHARES OF MINISCRIBE STOCK VALUED AT 17 MILLION WHILE AWARE OF MATERIAL NONPUBLIC INFORMATION ALAN DILL A DENVER ATTORNEY REPRESENTING MR WILES SAID HIS CLIENT DENIES THE CHARGES HE SAID MR WILES WILL PLEAD NOT GUILTY AND REQUEST A TRIAL MR WILES 74 YEARS OLD HAS PAID PART OF THE SETTLEMENTS IN SEVERAL CIVIL LAWSUITS FILED BY THE COMPANY'S BONDHOLDERS HE HAS ACKNOWLEDGED CIVILLY THAT HE'S RESPONSIBLE FOR WHAT HIS EMPLOYEES DID BUT HE HAS NEVER DONE ANYTHING CRIMINAL IN THIS THE ATTORNEY SAID A 1988 INVESTIGATION BY OUTSIDE DIRECTORS OF THE LONGMONT COLO COMPANY FOUND THAT IT HAD PERPETRATED A MASSIVE FRAUD BY BOOKING SHIPMENTS AS SALES MANIPULATING RESERVES AND GROSSLY EXAGGERATING GROWTH FIGURES AMONG OTHER THINGS THE INDICTMENT STATED MINISCRIBE EMPLOYEES CREATED FICTITIOUS INVENTORY IN TRANSIT TRANSFERRED MILLIONS OF DOLLARS OF NONEXISTENT INVENTORY BETWEEN MANUFACTURING FACILITIES AND PACKAGED BRICKS OBSOLETE PARTS AND SCRAP TO LOOK LIKE FINISHED GOODS LAST YEAR MINISCRIBE BONDHOLDERS WERE AWARDED 550 MILLION BY A TEXAS JURY IN A CIVIL SUIT THAT NAMED AS DEFENDANTS MR WILES COOPERS & LYBRAND THE COMPANY'S ACCOUNTING FIRM AND HAMBRECHT & QUIST ITS INVESTMENT BANKING FIRM 9303120156 930312 MARKETING & MEDIA CBS TO STAY IN NEW YORK IN EXCHANGE FOR INCENTIVES NEW YORK CBS INC SAID IT AGREED TO REMAIN BASED IN NEW YORK CITY FOR THE NEXT 15 YEARS IN EXCHANGE FOR ABOUT 375 MILLION IN CITY AND STATE TAX INCENTIVES AND 122 MILLION IN LOWCOST POWER TO RECEIVE THE TAX INCENTIVES CBS MUST INVEST MORE THAN 300 MILLION IN BUILDING IMPROVEMENTS EQUIPMENT AND THE DEVELOPMENT OF NEW BROADCASTING AND PRODUCTION TECHNOLOGIES INCLUDING A PLANNED CONVERSION TO A HIGH DEFINITION TELEVISION FORMAT THE CONVERSION TO HDTV WILL TAKE AT LEAST A DECADE AND COST ABOUT 100 MILLION SAID EDWARD GREBOW A CBS SENIOR VICE PRESIDENT ABOUT 65 MILLION IN REAL ESTATE TAX CREDITS WILL GO TO THE DEVELOPMENT OF NEW OR UPGRADED PRODUCTION FACILITIES IN THE CITY INCLUDING 25 MILLION IN CREDITS FOR THE RENOVATION OF THE ED SULLIVAN THEATER CBS BOUGHT THE THEATER FOR USE BY LATENIGHT TALK SHOW HOST DAVID LETTERMAN WHOSE NEW SHOW WILL TAKE UP RESIDENCE THERE WHEN HE LEAVES NBC TO MOVE TO CBS THIS SUMMER THE REMAINING 31 MILLION IN THE TAX PACKAGE IS IN THE FORM OF SALES TAX SAVINGS FOR THE PURCHASE OF MACHINERY AND EQUIPMENT CBS CHAIRMAN LAURENCE TISCH SAID CBS WHICH HAS BEEN IN THE CITY SINCE IT WAS FOUNDED 65 YEARS AGO HAD LOOKED AT OTHER LOCATIONS BUT NEVER THREATENED TO LEAVE IF TAX INCENTIVES WEREN'T OFFERED INSTEAD MR TISCH SAID CBS APPROACHED THE CITY AND ASKED WHAT IT COULD DO TO MAKE THE COMPANY FEEL WELCOME CBS EMPLOYS 4600 PEOPLE IN NEW YORK AND IS ESTIMATED TO GENERATE ABOUT 14 BILLION IN ECONOMIC ACTIVITY ANNUALLY 9303120155 930312 COMMODITIES COPPER FUTURES PRICES RALLY FOR A SECOND DAY ON TECHNICAL GROUNDS CONCERN ABOUT RUSSIA BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COPPER FUTURES PRICES RALLIED FOR A SECOND STRAIGHT DAY TRADERS BID THE METAL HIGHER ON TECHNICAL GROUNDS AND ON CONCERN ABOUT POSSIBLE POLITICAL UNREST IN RUSSIA ONE OF THE WORLD'S LEADING COPPER PRODUCERS ON THE COMMODITY EXCHANGE IN NEW YORK COPPER FOR MAY DELIVERY JUMPED 140 CENTS TO 9770 CENTS A POUND FOLLOWING WEDNESDAY'S 105 CENT CLIMB IT'S A TECHNICAL BOUNCE INSPIRED BECAUSE MAJOR BUYING SUPPORT FOR COPPER HAS HELD AT 94 CENTS ON THE MAY CONTRACT SAID BERNARD SAVAIKO SENIOR COMMODITY ANALYST WITH PAINEWEBBER THE RISE YESTERDAY HE SAID WAS TRIGGERED BY SHORTCOVERING BY COMMODITY FUNDS SHORTCOVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR WAGERS THAT COPPER PRICES WILL DECLINEBUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS LARGESCALE SHORTCOVERING BY COPPER PRODUCERS AND BIG INVESTORS SUCH AS COMMODITY FUNDS TENDS TO ADD UPWARD PRICE MOMENTUM TO THE MARKET ANALYSTS SAID THE COPPER FUTURES MARKET IS ALSO BEING PUSHED HIGHER ON SHORTTERM SUPPLY CONCERNS WITH ATTENTION FOCUSED ON POLITICAL TURMOIL IN MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN THIS WEEK HAS BEEN STRUGGLING TO KEEP CONTROL OVER ECONOMIC REFORMS AND MORE GENERALLY TO FORGE A COMPROMISE OVER POWERSHARING WITH A RESTIVE CONSERVATIVE LEGISLATURE THE CONCERN WHICH I FEEL IS HIGHLY EXAGGERATED IS THAT POLITICAL CHAOS COULD LEAD TO SOME SUPPLY DISRUPTION SAID WILLIAM O'NEILL SENIOR FUTURES ANALYST WITH MERRILL LYNCH SHORT OF A CIVIL WAR OR AN UPHEAVAL OF THAT KIND IT'S VERY UNLIKELY THAT WE'LL SEE SUPPLY OF METALS DISRUPTED MR O'NEILL POINTED OUT THAT RUSSIA AND THE COMMONWEALTH OF INDEPENDENT STATES DESPERATELY NEED FOREIGN CURRENCY EXPORTS OF METALS BOTH PRECIOUS AND BASE ARE A PRIME SOURCE FOR RUSSIA IN GENERATING HARDCURRENCY EARNINGS MR SAVAIKO THE PAINEWEBBER ANALYST AGREED THAT THE FOCUS ON SUPPLY CONCERNS FROM RUSSIA WAS UNJUSTIFIED RUSSIA IS A LARGE PRODUCER BUT HAS NOT TRADITIONALLY BEEN A LARGE EXPORTER IT CERTAINLY DOESN'T SELL QUALITY MATERIAL TO WEST HE SAID I FIND THE FOCUS ON RUSSIA ALL THE MORE SURPRISING BECAUSE IF THERE WERE REAL TURMOIL IN RUSSIA WHY WOULD IT AFFECT COPPER AND NOT OIL OIL WAS DOWN SHARPLY TODAY HE SAID HEAVY BUYING OF SCRAPGRADE COPPER BY THE TAIWANESE WAS THE BASIC REASON FOR THE PRICE CLIMB OVER THE PAST TWO DAYS IT'S DEMAND FOR RAW COPPER BY TAIWAN THAT SEEMS TO BE THE INDIRECT CAUSE OF A SHARP DECLINE IN STOCKS CERTIFIED FOR DELIVERY AGAINST COMEX FUTURES YOU NORMALLY DON'T SEE A DRAWDOWN IN INVENTORY AT THE EXCHANGE UNTIL SCRAP SUPPLIES AND OTHER ALTERNATIVES HAVE BEEN EXHAUSTED HE SAID COMEX INVENTORY HAS DROPPED BY SOME 4700 SHORT TONS SINCE TUESDAY MR SAVAIKO SAID ADDING THAT THE DROP WAS UNUSUALLY STRONG CONCERN ABOUT A POSSIBLE RAIL STRIKE IN PERU HAS FADED NEWS REPORTS FROM THERE INDICATE THAT SUPPLIES ARE BEING DELIVERED BY TRUCK TO PORTS WHILE THE MAY COPPER CONTRACT IS INCHING ITS WAY TOWARD THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 1 A POUND SOME ANALYSTS ARE SKEPTICAL THAT IT WILL REVEAL ANY STAYING POWER ABOVE THAT PRICE IF WE HIT A DOLLAR IT WOULDN'T BE JUSTIFIED ON FUNDAMENTAL BASIS ARGUED MR O'NEILL THE MERRILL LYNCH ANALYST JAPANESE DEMAND IS BLEAK EUROPEAN DEMAND IS QUITE POOR AND THE ONLY BRIGHT SPOT IS NORTH AMERICA THE CLINTON DEFICITREDUCTION PLAN WILL PUT LIMITS ON US DEMAND HE SAID IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS CONCERN ABOUT POLITICAL TURMOIL IN RUSSIA LIFTED PRECIOUS METALS PRICES ACROSS THE BOARD RUSSIA IS A MAJOR EXPORTER OF PLATINUM AND PALLADIUMTWO METALS USED EXTENSIVELY IN THE AUTOMOTIVE AND ELECTRONICS INDUSTRIES AS FUTURES PRICES OF THOSE METALS ROSE GOLD AND SILVER FUTURES FOLLOWED IN SYMPATHY TRADERS SAID PALLADIUM FOR JUNE DELIVERY JUMPED 230 TO 105 AN OUNCE WHILE PLATINUM FOR APRIL DELIVERY SHOT UP 370 AN OUNCE TO 34930 ON THE NEW YORK MERCANTILE EXCHANGE GOLD FOR APRIL DELIVERY WHICH HAS BEEN DECLINING ALL WEEK ENDED 70 CENTS HIGHER AT 32760 AN OUNCE WHILE SILVER FOR MAY DELIVERY ENDED 55 CENTS HIGHER AT 3637 AN OUNCE GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES FELL ON SELLING BY COMMODITY FUNDS AND CONCERNS ABOUT RUSSIA AFTER THE AGRICULTURE DEPARTMENT RELEASED A REPORT WEDNESDAY PROJECTING INCREASED EXPORTS OF US SOYBEANS MANY TRADERS EXPECTED SOYBEAN PRICES TO RALLY YET IN AN EARLY SURGE AT THE CHICAGO BOARD OF TRADE PRICES FAILED TO TOP THE PSYCHOLOGICALLY IMPORTANT PRICE LEVEL OF 590 A BUSHEL SAID BILL BIEDERMANN VICE PRESIDENT FOR RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL THAT TRIGGERED SELLING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY THAT TYPICALLY INVEST ON THE BASIS OF MATHEMATICAL FORMULAS RATHER THAN FUNDAMENTAL FACTORS ALSO LENDING A BEARISH ATMOSPHERE TO THE CBOT'S SOYBEAN PIT WAS NEWS THAT RUSSIAN PRESIDENT BORIS YELTSIN IS ENCOUNTERING POLITICAL DIFFICULTY BECAUSE OF THE WEAKNESS OF THE RUSSIAN ECONOMY THE PRICE OF SOYBEANS FOR JULY DELIVERY DECLINED 55 CENTS TO 583 A BUSHEL LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES FELL ON SENTIMENT AMONG MANY TRADERS THAT AT NEARLY 50 CENTS A POUND PORK BELLIES ARE OVERPRICED PORK BELLIES FOR MAY DELIVERY WERE DOWN 040 CENT TO 48 CENTS A POUND AT THE CHICAGO MERCANTILE EXCHANGE LOWERTHANEXPECTED SLAUGHTER OF HOGS AND UNUSUALLY STRONG DEMAND FOR BACON WHICH IS MADE FROM PORK BELLIES HAVE PRODUCED A SUSTAINED RALLY IN PORKBELLY FUTURES PRICES OVER THE PAST TWO WEEKS SOME TRADERS ARE BEGINNING TO SUSPECT THAT THE RALLY MAY HAVE RUN ITS COURSE PORKBELLY PRICES ARE HIGH ENOUGH NOW THAT THEY SOON COULD BEGIN TRICKLING DOWN TO THE RETAIL LEVEL FORCING CONSUMERS TO PAY HIGHER PRICES FOR BACON IF THAT OCCURS DEMAND FOR BACON MAY EASE SOME ANALYSTS SAID 9303120154 930312 INTERNATIONAL STOCK EXCHANGE IN LONDON DROPS TRADING PROJECT CEO QUITS AMID CHARGES THAT HE BOTCHED WORK ON ELECTRONIC SYSTEM BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE PRESTIGE OF BRITAIN'S FINANCIAL CENTER SUFFERED A SETBACK AS THE LONDON STOCK EXCHANGE FINALLY ADMITTED DEFEAT AND PULLED THE PLUG ON A DECADELONG PROJECT TO CREATE AN AUTOMATED TRADING SYSTEM PETER RAWLINS THE EXCHANGE'S CHIEF EXECUTIVE OFFICER ANNOUNCED HIS RESIGNATION AMID RECRIMINATIONS THAT HE BADLY BOTCHED WORK ON THE SYSTEM KNOWN AS TAURUS THE LONDON EXCHANGE SAID CANCELING THE PROJECT WOULD OBVIOUSLY HAVE PAINFUL STAFFING IMPLICATIONS AND ANNOUNCED THAT 220 EMPLOYEES CURRENTLY WORKING ON THE PROJECT HAVE BEEN TOLD THAT THEIR POSITIONS ARE NOW REDUNDANT ALSO AN ADDITIONAL 130 INDIVIDUAL CONTRACTORS HAVE BEEN NOTIFIED THAT THEIR CONTRACTS HAVE BEEN TERMINATED SIR ANDREW HUGH SMITH CHAIRMAN OF THE EXCHANGE WILL ASSUME THE ROLE OF CHIEF EXECUTIVE UNTIL A REPLACEMENT IS APPOINTED MEANTIME THE BANK OF ENGLAND APPOINTED A TASK FORCE TO EXAMINE POSSIBLE SOLUTIONS TO THE TAURUS SYSTEM FRANKFURT AND PARIS WHICH ASPIRE TO RIVAL LONDON AS EUROPE'S PREMIER FINANCIAL CENTER ALREADY HAVE EFFICIENT COMPUTERIZED TRADING SYSTEMS WITH SETTLEMENT USUALLY OCCURRING WITHIN THREE DAYS THE DECISION TO CANCEL TAURUS WAS WIDELY EXPECTED IN THE CITY OF LONDON AFTER NUMEROUS TECHNICAL DIFFICULTIES HAD PLAGUED THE SYSTEM TAURUS WAS REALLY A DOG SAID A CHIEF EQUITY TRADER AT A MAJOR DOMESTIC BANK NOTHING WAS GOING TO CHANGE NO MATTER HOW MUCH MONEY THEY THREW AT IT I'M SURE THEY'RE LAUGHING AT US IN FRANKFURT AND PARIS ADDED AN EQUITY SALESMAN THE CURRENT SYSTEM KNOWN AS TALISMAN HAS BEEN IN PLACE SINCE 1979 AN ACRONYM FOR TRANSFER ACCOUNTING LODGEMENT FOR INVESTORS STOCK MANAGEMENT FOR JOBBERS TALISMAN TAKES ABOUT TWO WEEKS TO SETTLE TRADES TAURUS WHICH STANDS FOR TRANSFER AND AUTOMATED REGISTRATION OF UNCERTIFICATED STOCK WAS ORIGINALLY CONCEIVED IN THE EARLY 1980S TO MODERNIZE THE STOCK EXCHANGE AND BRING SETTLEMENT TIME DOWN TO TWO DAYS INDEPENDENT SOURCES HAVE ESTIMATED THAT THE LONDON STOCK EXCHANGE AND MEMBER COMMERCIAL BANKS SPENT NEARLY 450 MILLION 6454 MILLION ON THE PROJECT TO DATE THE BRITISH BANKING ASSOCIATION AN INDUSTRY TRADE GROUP SAID IN A STATEMENT IT WAS VERY DISTRESSED THAT THE LONDON EXCHANGE COULDN'T DELIVER AN EFFICIENT SYSTEM THE ASSOCIATION SAID STOPPING WORK ON TAURUS PUTS LONDON'S CREDIBILITY AS AN INTERNATIONAL SECURITIES MARKET AT RISK ADDING THAT A NEW SYSTEM WAS URGENTLY NEEDED THE ASSOCIATION ESTIMATED THAT ITS MEMBER BANKS HAD SPENT 30 MILLION TO 40 MILLION DEVELOPING TAURUS PEOPLE INVOLVED IN THE TAURUS PROJECT SAID IT WOULD BE DIFFICULT TO IDENTIFY A SINGLE CAUSE FOR THE PROJECT'S FAILURE ONE WHO ASKED NOT TO BE NAMED SUGGESTED THAT THE COMPLEX NATURE OF THE PROJECT LED TO A WIDE VARIETY OF PROBLEMS IT WOULD HAVE WORKED BUT IT DIDN'T LOOK LIKE IT WAS GOING TO BE COST EFFECTIVE THE PERSON SAID SOME SUGGESTED THAT THE PURSUIT OF A PURELY ELECTRONIC SETTLEMENT SYSTEM RATHER THAN A HYBRID WAS A KEY FACTOR IN ITS HIGH PRICE TAG LOOKING AHEAD SOURCES NOTED THAT THE DECISION TO PULL THE PLUG ON TAURUS DOESN'T HAVE ANY IMPACT ON THE EXCHANGE'S CURRENT CLEARING SYSTEM WHICH CONTINUES TO FUNCTION NORMALLY 9303120152 930312 WHO'S NEWS DILLON READ & CO DILLON READ & CO NEW YORK THIS PRIVATE INVESTMENT BANKING FIRM NAMED SHARYAR AZIZ 40 YEARS OLD A MANAGING DIRECTOR OF ITS CORPORATE FINANCE DEPARTMENT MR AZIZ WAS PREVIOUSLY MANAGING DIRECTOR AND COHEAD OF THE GENERAL BANKING GROUP AT SMITH BARNEY HARRIS UPHAM & CO THE SECURITIES UNIT OF PRIMERICA CORP 9303120151 930312 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 294320 METRIC TONS IN THE WEEK ENDED SATURDAY A 46 INCREASE FROM 281443 TONS THE PREVIOUS WEEK AND AN 11 RISE FROM 265084 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 2494567 TONS A 41 INCREASE FROM 2396342 TONS A YEAR EARLIER 9303120150 930312 BUSINESS BRIEF SOUTHERN CROSS AIRLINES HOLDINGS COMPASS AIRLINES SUBSIDIARY SEEKS PROVISIONAL LIQUIDATOR COMPASS AIRLINES A SMALL AUSTRALIAN DOMESTIC CARRIER APPLIED FOR THE APPOINTMENT OF A PROVISIONAL LIQUIDATOR AFTER ITS RECEIVER FAILED TO FIND ENOUGH FUNDS TO KEEP THE AIRLINE FLYING AN APPLICATION TO LIQUIDATE COMPASS WAS MADE TO THE QUEENSLAND SUPREME COURT BY RECEIVER RICHARD BARBER AND COMPASS'S HOLDING COMPANY SOUTHERN CROSS AIRLINES HOLDINGS LTD COMPASS AIRLINES WHICH NOW HAS COLLAPSED TWICE WITHIN 15 MONTHS WAS PUT IN THE HANDS OF A COURTAPPOINTED RECEIVER LAST WEEK WHILE IT SCRAMBLED TO RAISE ADDITIONAL FINANCING THE AIRLINE REPORTED A BIGGERTHANEXPECTED LOSS OF 11 MILLION AUSTRALIAN DOLLARS US78 MILLION FOR ITS FISCAL FIRST HALF AND PLANNED TO BORROW FROM ITS DEPUTY CHAIRMAN DOUG REID BUT THE FUNDS DIDN'T MATERIALIZE MR REID WAS ARRESTED BY THE AUSTRALIAN SECURITIES COMMISSION AND CHARGED WITH MAKING FALSE STATEMENTS TO OTHER DIRECTORS 9303120149 930312 BRITISH DRUG FIRM THRIVES AS SCAVENGER' MEDEVA FINDS NEW WAYS TO MARKET OLD MEDICINES BY STEPHEN D MOORE STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE BEGINNINGS OF MEDEVA PLC CERTAINLY WERE ROMANTIC ENOUGH IN OCTOBER 1987 WITH THE BIOTECH STARTUP BOOM AT ITS HOTTEST THE COMPANY'S FOUNDERS SET OUT TO TURN AN EXPERIMENTAL MEDICINE INTO A TREATMENT FOR CANCER AND AIDS WE LASTED 22 MONTHS UNTIL AUGUST 1989 RECALLS IAN GOWRIESMITH ONE OF THE FOUNDERS OF MEDIRACE PLC AS THE STARTUP COMPANY WAS CALLED THAT IS WHEN IT BECAME CLEAR THAT A SPECTACULAR EARLY SUCCESS WASN'T GOING TO MATERIALIZE SO MR GOWRIESMITH AND HIS COLLEAGUES MADE A STUNNING ABOUTFACE THE COMPANY BOUGHT EVANS MEDICAL LTD A MAKER OF VACCINES AND GENERIC DRUGS CHANGED THE COMBINED CONCERN'S NAME TO MEDEVA HIRED A FORMER GLAXO HOLDINGS PLC CHIEF EXECUTIVE OFFICER AND TURNED ITSELF INTO A SCAVENGER AMONG THE DRUG INDUSTRY'S CASTOFFS AND LEFTOVERS BY BUYING UP SMALL DRUG MAKERS AND FINDING NEW WAYS TO MARKET DOZENS OF AGING USUALLY OFFPATENT MEDICINES MEDEVA HAS BECOME A BOOMING SUCCESS ON WEDNESDAY THE CONCERN REPORTED ITS PRETAX PROFIT MORE THAN DOUBLED LAST YEAR TO 36 MILLION 52 MILLION AS GROSS PROFIT MARGINS GREW TO 56 FROM 46 SALES WERE UP 75 TO 1142 MILLION ITS STOCK JUMPED IN RESPONSE ON THE LONDON EXCHANGE WITH ITS TRADITIONFLOUTING STRATEGY MEDEVA HAS JOINED A HANDFUL OF MAVERICK DRUG COMPANIES MOSTLY AMERICAN THAT ARE EXPLOITING AND AT THE SAME TIME ACCELERATING MAJOR CHANGES IN THE 175 BILLIONAYEAR GLOBAL DRUG INDUSTRY THE SKYROCKETING COSTS OF RESEARCH AND GLOBAL MARKETING HAVE PROMPTED TITANS SUCH AS MERCK & CO AND GLAXO TO FOCUS THEIR RESOURCES ON DEVELOPING FEWER PRODUCTS BUT ONES WITH POTENTIALLY HUGE PAYOFFS THEY DON'T HAVE THE TIME THE MONEY OR THE ENERGY TO THINK UP NEW DELIVERY METHODS OR MORE CONVENIENT DOSES FOR OLD DRUGS OR TO LAUNCH THEM INTO NEW MARKETS SWEEPING UP SUCH CRUMBS LEFT BY THE GIANTS HAS TURNED INTO A LUCRATIVE STRATEGY NOT ONLY FOR MEDEVA BUT ALSO FOR ITS US MODELS DRUG MAKERS SUCH AS FOREST LABORATORIES INC ROBERTS PHARMACEUTICAL CORP AND IVAX CORP AT THE SAME TIME INDUSTRY CONSOLIDATION HAS MADE IT EASIER FOR COMPANIES LIKE MEDEVA TO BUY DRUG FACTORIES AND PHARMACEUTICALS MARKETING UNITS WHICH ONCE WERE HARD TO COME BY THIS DEVELOPMENT HAS ENABLED BERNARD TAYLOR MEDEVA'S CHAIRMAN TO FORGE THE COMPANY INTO A MEDIUMSIZE TRANSATLANTIC DRUG MAKER THAT FITS INTO THE INDUSTRY'S MIDDLE GROUND I HAD ALWAYS FELT THAT THERE WOULD BE ROOM FOR QUITE A SUBSTANTIAL OPERATION BETWEEN THE GREAT RESEARCH COMPANIES AT ONE END OF THE PHARMACEUTICAL INDUSTRY AND THE RATS AND MICETHE GENERICS BOYSAT THE OTHER END MR TAYLOR SAYS AT THE SAME TIME HE ADDS THE BIOTECH STARTUP ROUTE IS A LONG HAUL FRAUGHT WITH PERIL IT TYPICALLY TAKES 10 OR 12 YEARS AND LOADS OF MONEY TO BRING A NEW DRUG TO MARKET MR TAYLOR CAME TO MEDEVA IN FEBRUARY 1990 A FEW MONTHS AFTER HAVING BEEN OUSTED AS CHIEF EXECUTIVE OF GLAXO IN A BOARD ROOM COUP HE SAYS BEING RECRUITED BY MEDEVA UNLEASHED AN ENTREPRENEURIAL STREAK HE HAD SECRETLY NURTURED FOR YEARS SINCE HE TOOK OVER MEDEVA'S PRETAX PROFIT HAS MULTIPLIED EIGHTFOLD AND SALES HAVE NEARLY TRIPLED HIS AIM IS TO PUSH MEDEVA'S SALES TO 500 MILLION A YEAR AND TO MAKE ITS STOCK ONE OF LONDON'S TOP 100 IN TERMS OF MARKET CAPITALIZATION BY THE MID 1990S CLEARLY GETTING THERE POSES TOUGH CHALLENGES TO MAINTAIN GROWTH MEDEVA MUST SUBSTITUTE BIGGER AND BETTER PRODUCTS FOR ITS PRESENT ONES MR TAYLOR SAYS MEDEVA WILL MAKE ITS BIGGEST PUSH IN TWO LUCRATIVE BUT FIERCELY COMPETITIVE SECTORS VACCINES AND RESPIRATORY DRUGS AND LACKING A HUGE HOME MARKET MEDEVA MUST INCREASE ITS CROSSBORDER MARKETING CLOUT THAT'S WHY IT SWALLOWED UP A PAIR OF SMALL US DRUG COMPANIES IN 1991 AND ADDED TWO MORE LAST YEAR BREAKING INTO CONTINENTAL EUROPE HAS BEEN HARDER AT THE MOMENT IT'S HARD TO FIND ANYTHING IF YOU'RE NOT INTERESTED IN TURNAROUND SITUATIONS FAMILY FEUDS OR A MEAGER SLICE OF SOME MARKET THAT'S JUST GOING TO GET US BURIED IN A POCKET OF PROBLEMS SAYS MR GOWRIESMITH WHO IS NOW PRESIDENT OF MEDEVA STILL MR TAYLOR IS UPBEAT ABOUT INTERNATIONAL MARKETING POTENTIAL MANY OF OUR PRODUCTS TEND TO HAVE BEEN DEVELOPED OR SOLD IN ONE MARKET BUT NEVER CROSSED BORDERS BEFORE HE SAYS LATE LAST YEAR MEDEVA DISCLOSED A TWOSTEP TRANSACTION THAT SIGNALS ITS FUTURE STRATEGY IT ACQUIRED A USBASED MANUFACTURER OF RESPIRATORY DRUGS AND AT THE SAME TIME PULLED OUT OF THE CUTTHROAT GENERICS BUSINESS SELLING ITS INVENTORIES OF UNBRANDED GENERIC PRODUCTS ALONG WITH AN IDLE BRITISH FACTORY TO IVAX DEFT DEALMAKING HAS BEEN A KEY TO MEDEVA'S SUCCESS AND COULD BECOME EVEN MORE CRUCIAL DURING THE NEXT FEW YEARS WHEN EXECUTIVES PLAN TO STALK BIGGER PREY MR GOWRIESMITH SAYS MEDEVA EXPECTS TO GOBBLE UP FALTERING STARTUP FIRMS LAUNCHED DURING THE BIOTECH BOOM IN THE US AND ACCELERATING INDUSTRY CONSOLIDATION ACROSS EUROPE WILL HEAT UP TAKEOVER ACTIVITY WHAT YOU'VE GOT IN EUROPE ARE MANY OLD FAMILY COMPANIES THAT DISCOVERED DRUGS AND GOT THEM REGISTERED 10 OR 20 YEARS AGO WHEN THE REGULATORY PROCESS WASN'T AS EXPENSIVE OR AS SCIENTIFICALLY DEMANDING AS TODAY MR GOWRIESMITH SAYS THEY'RE CAUGHT IN THE VORTEX OF WANTING TO REMAIN A RESEARCHBASED COMPANY BUT LACKING THE DISCOVERY PROCESS OR RESOURCES TO SUSTAIN THAT OR THE DISTRIBUTION AND INFRASTRUCTURE TO EXPLOIT IT IT LEAVES THEM HANGING BETWEEN SOMEWHERE AND NOWHERE ONE OF MR TAYLOR'S MAIN CONCERNS SO FAR HAS BEEN AVOIDING HEADON COMPETITION WITH MAJOR PHARMACEUTICAL COMPANIES INDEED AFTER THE ACQUISITION OF EVANS AND ITS LICENSES FOR MAKING AND SELLING CONTROLLED SUBSTANCES MEDEVA HELD A VIRTUAL UK MONOPOLY ON NARCOTIC PAIN KILLERS WHICH ARE TIGHTLY REGULATED MR TAYLOR EXPANDED THAT NICHE BY ACQUIRING ADDITIONAL CONTROLLED PRODUCTS FROM SMITHKLINE BEECHAM PLC MEDEVA'S BRITISH EXPERIENCE WITH CONTROLLED SUBSTANCES HELPED IN ITS 1991 ACQUISITION OF MD PHARMACEUTICAL IN THE US WHOSE BIGGEST PRODUCT IS A RESTRICTED DRUG USED TO TREAT HYPERACTIVITY IN CHILDREN MEDEVA ORDERED A MARKET SURVEY THAT FOUND SUBSTANTIAL UNSATISFIED DEMAND FOR METHYLPHENIDATE THE ANTIHYPERACTIVITY MEDICINE THE DATA PERSUADED US DRUG AUTHORITIES TO AUTHORIZE AN INCREASE IN PRODUCTION QUOTAS FOR THE FIRST TIME IN YEARS AS A RESULT DURING LAST YEAR'S FIRST HALF MEDEVA POSTED A 30 SURGE IN PRESCRIPTIONS AND A DOUBLING OF METHYLPHENIDATE SALES TO 118 MILLION FROM THE PREVIOUS YEAR IN MR TAYLOR'S BLUEPRINT THOUGH CONTROLLED SUBSTANCES WILL BE AT BEST A SIDELINE NOW HE AIMS TO PUSH INTO BIGGER THERAPEUTIC SECTORS SUCH AS VACCINES AND RESPIRATORY DRUGS EVEN THOUGH THAT WILL OPEN MEDEVA TO COMPETITION FROM THE GIANTS WHICH MR TAYLOR SO FAR HAS AVOIDED MEDEVA INHERITED THE NUCLEUS OF ITS VACCINES BUSINESS THROUGH THE EVANS PURCHASE LATER IT ACQUIRED WELLCOME PLC'S UNWANTED VACCINES UNIT MAKING ITSELF NO 5 WORLDWIDE IN VACCINES MR TAYLOR DOES ACKNOWLEDGE THOUGH THAT THERE'S A BIG GAP BETWEEN US AND NO 4 IN THE PAST COUPLE OF YEARS COMPANIES SUCH AS MERCK AND SMITHKLINE HAVE COME OUT WITH NOVEL GENETICALLY ENGINEERED VACCINES AGAINST HEPATITIS AND OTHER DISEASES MR TAYLOR ACKNOWLEDGES THAT COMPETITION IN VACCINES HAS GOTTEN TOUGHER SINCE WE FIRST STARTED BUT HE ADDS THAT THE POINT ABOUT VACCINES IS THAT IT'S DIFFICULT TO GET PATENTS ON THEM SO THE MAJORS CAN'T CONTROL THAT BUSINESS THE WAY THEY DO ULCER OR CARDIOVASCULAR MEDICINES MEDEVA HAS ACCELERATED DEVELOPMENT OF ORAL VACCINES ON WHICH THE FORMER WELLCOME UNIT DID PIONEERING WORK MR TAYLOR BELIEVES MEDEVA LEADS THE RACE TO DEVELOP ORAL VACCINES OFFERING IMMUNITY AFTER A SINGLE DOSE RATHER THAN THE CURRENT SYSTEM REQUIRING THREE DOSES SPREAD OVER SEVERAL DAYS THAT CONVENIENCE HE SUGGESTS PROMISES TO BE A BIG SELLING POINT 9303120148 930312 LAW LEGAL BEAT TIES TO CLINTON AID LAW FIRMS IN WASHINGTON BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A GOOD TIME TO BE A LAWYER IN WASHINGTON ESPECIALLY IF YOU HAVE FRIENDS IN HIGH PLACES THE NEW ADMINISTRATION'S ECONOMIC AND REGULATORY PROPOSALS WHILE APT TO CREATE SOME PAIN FOR INDUSTRIES AND INDIVIDUALS ACROSS THE NATION PRESENT MAJOR BUSINESS OPPORTUNITIES FOR LAWYERS INSIDE THE BELTWAY AND IN MANY CASES LAW FIRMS WITH TIES TO MEMBERS OF THE CLINTON TEAM ARE LEADING IN THE RACE TO CASH IN INDEED THOUGH PRESIDENT CLINTON SAYS HE WANTS TO REDUCE THE POWER OF INFLUENCE PEDDLERS LAWYERS AND LOBBYISTS TYPICALLY DO BEST IN ADMINISTRATIONS WITH AGGRESSIVE DOMESTIC AGENDAS SUCH AS HIS THAT'S BECAUSE CORPORATE CLIENTS TYPICALLY HAVE MORE TO WORRY ABOUT AND THEREFORE A GREATER NEED TO SEEK WAYS TO INFLUENCE POLICY DECISIONS IN RECENT MONTHS MANY FIRMS HAVE ACQUIRED PRACTICES EXPECTED TO BRING IN MILLIONS OF DOLLARS IN FIELDS WHERE PRESIDENT CLINTON HAS BIG PLANS TRANSITION CHIEF VERNON JORDAN'S AKIN GUMP STRAUSS HAUER & FELD HAS TAKEN ON HEALTHCARE AND TAXLAW PRACTICES AND FOR AT LEAST SOME NEW AKIN GUMP CLIENTS THE SIGHT OF MR JORDAN WITH THE PRESIDENT PHOTOGRAPHED IN GOLF CLOTHES AFTER A ROUND AT A VIRGINIA COUNTRY CLUB LAST WEEKEND WAS A PROMISING SIGN OF CONTINUING CLOSE TIES HOGAN & HARTSON THE CITY'S THIRDLARGEST FIRM WHICH HAS PLACED SEVERAL TOPLEVEL OFFICIALS IN THE NEW ADMINISTRATION IS RAPIDLY EXPANDING ITS LOBBYING PRACTICE AND MANY OTHER FIRMS WITH POLITICAL TIES ARE EXPANDING THEIR WASHINGTON OFFICES IN SOME CASES WITH HIGHPRICED EXPOLITICIANS AND FRIENDS OF THE PRESIDENT THIS IS AN ACTIVIST ADMINISTRATION AND THAT IS A PLUS FOR ANYBODY WHO UNDERSTANDS THE TOWN THE LAWS AND THE REGULATIONS SAYS TIMOTHY MAY MANAGING PARTNER OF PATTON BOGGS & BLOW THE FORMER LAW FIRM OF COMMERCE SECRETARY RON BROWN AND OTHER NEW ADMINISTRATION OFFICIALS PATTON BOGGS HAS BEEN RETAINED BY THE AMERICAN BANKERS ASSOCIATION AS A LOBBYIST ON BANKRUPTCY AND REGULATORY ISSUES AT RATES OF AS MUCH AS 500 AN HOUR LAW FIRMS PLAY DOWN THE SIGNIFICANCE OF THEIR POLITICAL CONNECTIONS AND DENY TRADING OFF THEM THE PRESIDENT'S NEW POLICIES ARE MORE SIGNIFICANT FOR BUSINESS THAN THE FACT THAT WE HAVE FORMER PARTNERS AND ASSOCIATES IN THE ADMINISTRATION SAYS AB CULVAHOUSE MANAGING PARTNER OF THE WASHINGTON OFFICE OF O'MELVENY & MYERS SECRETARY OF STATE WARREN CHRISTOPHER'S OLD FIRM WHICH PLANS TO ADD AS MANY AS EIGHT LAWYERS OVER THE NEXT YEAR TO ITS 62LAWYER CAPITAL OFFICE ON THE OTHER HAND THE SHEER APPEARANCE OF ACCESS SEEMS TO MAKE SOME DIFFERENCE FOR FIRMS TRYING TO ESTABLISH THEMSELVES IN THE NEW ENVIRONMENT THE PERCEPTION THAT A FIRM IS WELLSITUATED AND WELLCONNECTED BECOMES A SELFFULFILLING PROPHECY SAYS SUSAN MILLER A WASHINGTONBASED LEGAL RECRUITER IF A FIRM APPEARS TO HAVE ACCESS OR TO BE PROFITABLE THEN PEOPLE WITH SIGNIFICANT BUSINESS PORTFOLIOS ARE LIKELY TO WANT TO JOIN IT WASHINGTON FIRMS CAN USE THE BUSINESS LAST YEAR THE NUMBER OF LAWYERS WORKING IN THE CITY'S TOP 75 FIRMS DECLINED FOR THE FIRST TIME IN MORE THAN A DECADE ACCORDING TO A SURVEY BY THE LEGAL TIMES NEWSPAPER MANY FIRMS ARE STILL HURTING FROM THE GENERALLY WEAK ECONOMY AND A CONTINUING GLUT OF LAWYERS IN WHAT HAS LONG BEEN THE NATION'S MOST DENSELY LAWYERPOPULATED CITY FRANKLY THE LAST COUPLE OF YEARS HAVE BEEN A PRETTY QUIET TIME AROUND HERE SAYS ROBERT KABEL A PARTNER AT MANATT PHELPS & PHILLIPS THE FORMER FIRM OF US TRADE REPRESENTATIVE MICKEY KANTOR NOW THINGS ARE LOOKING UP MR KABEL SAYS IN JANUARY MANATT PHELPS ENHANCED ITS LONGSTANDING RELATIONSHIP WITH NEC CORP OF JAPAN SECURING A 300000 RETAINER FROM ITS US UNIT TO MONITOR TRADE ISSUES LOBBYING RECORDS INDICATE IT HAS ALSO TAKEN ON SUCH NEW CLIENTS AS THE ORGANIZERS OF THE WORLD CUP SOCCER CHAMPIONSHIPS BEING HELD IN THE US NEXT YEAR ONE NEW LAWYER AT THE AKIN GUMP FIRM DONALD ALEXANDER IS A FORMER INTERNAL REVENUE SERVICE COMMISSIONER WHO IN HIS FORMER FIRM HAS REPRESENTED THE LIKES OF BECHTEL GROUP INC NATIONWIDE INSURANCE COS AND CHIQUITA BRANDS INTERNATIONAL INC AKIN GUMP WAS ALSO RECENTLY RETAINED BY USA GROUP INC THE NATION'S LARGEST PRIVATE GUARANTOR OF STUDENT LOANS TO BATTLE A CLINTON PLAN TO OVERHAUL THE NATION'S TROUBLED STUDENTLOAN PROGRAM ANOTHER LAWYER WHO RECENTLY JOINED THE FIRM FOOD AND DRUG PRACTITIONER ROBERT PINCO VALUES HIS PRACTICE AT 3 MILLION TO 4 MILLION A YEAR INCLUDING A NUMBER OF TRADE ASSOCIATIONS KNOWING PEOPLE IN REGULATORY AGENCIES IS CRUCIAL IN THE PHARMACEUTICAL AREA SAYS MR PINCO AND THIS FIRM HAS WORKED VERY HARD TO KEEP THAT ACCESS AKIN GUMP MANAGING PARTNER LAURENCE HOFFMAN SAYS THAT WHILE THE POLITICAL CONNECTIONS ARE HELPFUL FROM THE STANDPOINT OF GIVING THE FIRM VISIBILITY WHEN IT COMES TO MR JORDAN AND NAME PARTNER ROBERT STRAUSS WHO RETURNED TO THE FIRM RECENTLY AFTER SERVING AS AMBASSADOR TO RUSSIA THE FIRM SEEKS TO AVOID ANY CONFLICTS BY BEING EXTREMELY CONSERVATIVE AND CAUTIOUS ABOUT THE ACTIVITIES WE UNDERTAKE HAVING SAID THAT MR HOFFMAN ADDS THE FIRM IS ALSO LOOKING TO ADD ABOUT 50 NEW LAWYERS THIS YEAR ROUGHLY A 10 EXPANSION HE SAYS PLANS FOR BULKING UP IN THE HEALTH AND TAX AREAS PREDATED THE CHANGE IN ADMINISTRATIONS BUT WE WERE CERTAINLY HAPPY WE WERE ABLE TO ACHIEVE OUR GOALS HE ADDS HOGAN & HARTSON HAS TAKEN ON SOME 10 NEW LOBBYING CLIENTS SINCE JANUARY INCLUDING BURGER KING CORP AND THE NATIONAL ASSOCIATION OF COMMUNITY HEALTH CENTERS ACCORDING TO FILINGS WITH THE US SENATE ONE OF THE POLITICALLY ACTIVE FIRM'S ATTORNEYS WAS THE GENERAL COUNSEL OF THE CLINTONGORE CAMPAIGN AND OTHERS NOW SERVE IN SUCH POSITIONS AS DEPUTY NATIONAL SECURITY ADVISER AND SECRETARY TO THE CABINET PEOPLE ARE GLAD TO KNOW THAT BUT IT IS NOT LIKE PEOPLE ARE COMING IN AND SAYING GOSH WE WANT TO HIRE YOU BECAUSE YOU HAVE THESE RELATIONSHIPS' SAYS MICHAEL HOUSE A LOBBYIST AT THE FIRM IF YOU ARE GOING TO BE A MAJOR PLAYER IN THE CITY OVER THE LONG TERM YOU ALWAYS MOVE WITH DISCRETION MEANWHILE THE WASHINGTON OFFICE OF WINSTON & STRAWN HAS HIRED FORMER ARKANSAS CONGRESSMAN BERYL ANTHONY FORMER MEMBER OF THE INFLUENTIAL WAYS AND MEANS COMMITTEE AND FORMER OHIO CONGRESSMAN DENNIS ECKART FORMER MEMBER OF THE INFLUENTIAL HOUSE ENERGY AND COMMERCE COMMITTEE ACCORDING TO BIOGRAPHIES OF THE MEN DISTRIBUTED BY THE FIRM'S NEW YORK PUBLICRELATIONS FIRM EACH IS EARNING BETWEEN 300000 AND 500000 A YEAR LEGAL RECRUITERS ESTIMATE THE 450LAWYER CHICAGOBASED FIRM DECLINED TO COMMENT MR ANTHONY WILL HEAD UP THE FIRM'S LOBBYING AND REGULATORYAFFAIRS SECTION AND HE SAYS HE HAS BROUGHT IN SOME NEW CLIENTS ALREADY BUT HE SAYS HE IS COMMITTED TO SEEKING VALUE FOR VALUE AND DOESN'T PLAN TO TAKE ADVANTAGE OF THE FACT THAT AS A LONGTIME FRIEND OF THE PRESIDENT HE MAY OCCASIONALLY WATCH THE ARKANSAS RAZORBACKS PLAYING THE LSU TIGERS IN THE WHITE HOUSE ARKANSAS FIRMS ARE SUDDENLY DOING WELL TOO IN LITTLE ROCK BUSINESS HAS BEEN STRONG AT THE ROSE LAW FIRM THOUGH A SPOKESMAN SAYS HE DOESN'T BELIEVE THE GROWTH IS RELATED TO THE RISE OF FORMER PARTNER HILLARY RODHAM CLINTON OR THREE OTHER SENIOR LAWYERS WHO ARE WORKING IN THE NEW ADMINISTRATION ITS CROSSTOWN RIVAL WRIGHT LINDSEY & JENNINGS WHERE THE PRESIDENT HIMSELF ONCE WORKED IN THE EARLY 1980S IS MORE OPENLY ENTHUSIASTIC ABOUT ITS PROSPECTS AND CONNECTIONS THE FIRM'S OTHER ALUMNI INCLUDE WHITE HOUSE PERSONNEL DIRECTOR BRUCE LINDSEY THOMAS MCLARTY WHITE HOUSE CHIEF OF STAFF AND FORMER ARKLA INC CHAIRMAN IS A CLIENT IT IS HARD TO SAY HOW MUCH YOU CAN ATTRIBUTE DIRECTLY TO THOSE CURRENT CONTACTS OR PAST RELATIONSHIPS BUT YOU KNOW NO QUESTION IT HAS BEEN A PLUS TO THE FIRM SAYS ISAAC SCOTT MANAGING PARTNER OF THE 60LAWYER FIRM I THINK WE HAVE AN OPPORTUNITY TO MAKE SOME CONTRIBUTIONS ON A NATIONAL LEVEL TO THE POLITICAL AND CONGRESSIONAL PROCESSES AND WE JUST HAVEN'T HAD THAT OPPORTUNITY BEFORE HE SAYS THE SECURITIES AND EXCHANGE COMMISSION REACHED A SETTLEMENT IN A LAWSUIT ACCUSING A SWISS ATTORNEY OF HELPING A CLIENT COMMIT INSIDER TRADING THE LAWYER KURT NAEGELI OF ZURICH NEITHER ADMITTED NOR DENIED THE ALLEGATIONS WHICH STEMMED FROM ABB ASEA BROWN BOVERI LTD'S 1989 TAKEOVER OF COMBUSTION ENGINEERING INC STAMFORD CONN TO SETTLE THE CASE HE CONSENTED TO A COURT ORDER BARRING HIM FROM ANY SECURITIESLAW VIOLATIONS MR NAEGELI'S ATTORNEY THOMAS ENGEL OF NEW YORK SAID THE SWISS LAWYER HAD BEEN UNAWARE OF THE ALLEGED ILLEGAL TRADING BUT RELUCTANTLY DECIDED NOT TO CONTINUE THIS EXPENSIVE LITIGATION MR NAEGELI WASN'T ACCUSED OF SHARING IN PROFITS FROM THE TRADING THE SEC HAD ACCUSED MR NAEGELI OF HELPING HIS CLIENT CHRISTIAN NORGREN COMMIT INSIDER TRADING IN THE TAKEOVER MR NORGREN WHO WAS A DIRECTOR OF ABB AND A FINANCIALSERVICES COMPANY HE PARTLY OWNED SETTLED WITH THE SEC IN 1991 BY AGREEING TO PAY 36 MILLION MR NORGREN AND THE FINANCIALSERVICES COMPANY FINACOR ANSTALT OF LIECHTENSTEIN NEITHER ADMITTED NOR DENIED THE SEC ALLEGATIONS ABB IS A SWEDISHSWISS POWER GENERATION COMPANY IRS DEPARTURE CHARLES TRIPLETT SPECIAL ASSISTANT TO THE CHIEF COUNSEL AT THE INTERNAL REVENUE SERVICE WILL JOIN SHEARMAN & STERLING AS TAX COUNSEL A NONPARTNER POSITION IN MAY HE WILL WORK IN THE NEW YORK LAW FIRM'S TAX DEPARTMENT IN WASHINGTON REALESTATE BOOM WASHINGTON LAW FIRM ARNOLD & PORTER IS ADDING FIVE ATTORNEYS FROM DUNNELLS DUVALL & PORTER ANOTHER DC FIRM TO ITS REALESTATE GROUP FORMER DUNNELLS PARTNERS STEPHEN PORTER LEE NARROW AND BRYAN TOMASEK HAVE BEEN NAMED PARTNERS AT ARNOLD & PORTER WHICH HAS MORE THAN 380 ATTORNEYS MICHAEL GOODWIN AND JOAN KAUFMAN ARE JOINING IN NONPARTNER POSITIONS DUNNELLS HAD 55 TO 60 ATTORNEYS BEFORE THE CHANGES SAID DICK DUNNELLS A PARTNER AT THE LAW FIRM POLLUTION PATROL A LAW CLINIC STAFFED BY STUDENTS OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY LAW SCHOOL WILL OFFER FREE LEGAL HELP TO COMMUNITY GROUPS PURSUING ENVIRONMENTAL CASES THE CLINIC WHICH WILL HAVE TWO FULLTIME LAWYERS AND 15 STUDENT INTERNS WILL BEGIN OPERATING LATER THIS YEAR 9303120147 930312 S&L PROFIT SOARED 48 IN 4TH PERIOD FROM YEAR EARLIER BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EARNINGS OF SAVINGSANDLOAN INSTITUTIONS IN THE FOURTH QUARTER OF LAST YEAR JUMPED 48 FROM A YEAR EARLIER TO 113 BILLION THE OFFICE OF THRIFT SUPERVISION REPORTED THE NATION'S 1855 PRIVATE THRIFTS WOUND UP 1992 WITH RECORD NET INCOME OF 514 BILLION NEARLY TRIPLE THE 1991 PROFIT OF 183 BILLION AND MORE THAN 30 GREATER THAN THE PREVIOUS RECORD IN1978 THE PROFIT GROWTH OVER THE PAST TWO YEARS FOLLOWED COMBINED LOSSES OF NEARLY 30 BILLION FOR 19871990 THE REGULATORY AGENCY SAID THE INDUSTRY'S FINANCIAL COMEBACK MOSTLY REFLECTS THE GOVERNMENT'S EFFORTS TO WEED OUT WEAK S&LS SAID JONATHAN FIECHTER OTS ACTING DIRECTOR FALLING INTEREST RATES HAVE ALSO HELPED BY WIDENING THE SPREAD BETWEEN THE RATES THAT THRIFTS PAY FOR THEIR FUNDS AND THE INTEREST EARNED ON THEIR LENDING HE SAID THAT SPREAD EXPANDED TO MORE THAN THREE PERCENTAGE POINTS DURING THE YEAR HE ADDED PAUL SCHOSBERG PRESIDENT OF THE SAVINGS AND COMMUNITY BANKERS OF AMERICA THE S&L TRADE GROUP SAID THIS IS A REMARKABLE PERFORMANCE FOR AN INDUSTRY THAT WAS SIGNIFICANTLY TROUBLED JUST A FEW YEARS AGO A BETTER ECONOMIC ENVIRONMENT STRONG MANAGEMENT AND COST CONTROLS AND THE REMOVAL OF TROUBLED INSTITUTIONS HAVE TURNED AROUND THE INDUSTRY LEAVING STRONG SAFE AND PROFITABLE INSTITUTIONS FOURTHQUARTER NET INCOME DECLINED HOWEVER FROM EARNINGS OF 154 BILLION 123 BILLION AND 124 BILLION IN THE FIRST THREE QUARTERS OF THIS YEAR RESPECTIVELY THE OTS'S MR FIECHTER CITED RISING LOAN RESERVES AND A DECLINE IN PROFITS FROM ASSET SALES FOR THE QUARTERTOQUARTER DECREASE MR FIECHTER SAID THAT AT THE END OF LAST YEAR THERE WERE STILL 200 PROBLEM THRIFTS OR 36 FEWER THAN AT THE END OF 1991 HE ESTIMATED THAT ROUGHLY 15 OF THOSE MIGHT BE CLOSED THIS YEAR REQUIRING FEDERAL FUNDS TO HELP COVER CUSTOMERS' DEPOSITS THERE ARE CURRENTLY EIGHT CRITICALLY UNDERCAPITALIZED THRIFTS DOWN FROM 11 AT THE END OF 1992 AND 31 AS OF SEPT 30 THE OTS SAID MR FIECHTER SAID THAT MOST OF THE EIGHT ARE WORKING ON MERGERS OR OTHER STRATEGIES THAT WOULD AVERT BEING CLOSED BY FEDERAL REGULATORS COMMENTING ON THE CONTINUED SHRINKAGE OF THE INDUSTRY AS THE AGENCY CLOSES FAILED THRIFTS HE SAID I THINK WE ARE CLOSE TO A TRICKLE BUT THE OTS OFFICIAL WARNED THAT ALTHOUGH CREDIT RISK IS UNDER CONTROL INTERESTRATE RISK WILL BE A MAJOR SOURCE OF CONCERN TO US A RETURN TO RISING INTEREST RATES COULD HURT THRIFT EARNINGS HE SAID WE DON'T KNOW HOW LONG THIS SPREAD WILL CONTINUE 9303120146 930312 YOUR MONEY MATTERS WEEKEND REPORT HOW TO AVOID THE PITFALLS IN MORTGAGE REFINANCING BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL AS MORTGAGE RATES FALL STILL LOWER A WHOLE NEW CROP OF HOMEOWNERS IS DECIDING THAT REFINANCING MAKES SENSE BUT THAT DOESN'T MEAN THE PROCESS OF REFINANCING IS GOING TO MAKE SENSE TO ANY OF THEM PEOPLE GO INTO THIS THINKING IT IS GOING TO BE A BREEZE SAYS STEVEN ENRIGHT A RIVER VALE NJ FINANCIAL PLANNER IT'S NOT THE RITUALS OF GETTING A NEW MORTGAGE CAN BE SO FRUSTRATING AND SO ILLOGICAL THAT PROFESSIONAL ADVISERS SUCH AS MR ENRIGHT HAVE FOUND THEMSELVES MIRED IN THE DETAILS EVEN IF YOU'VE ALREADY LIVED THROUGH A REFINANCING YOU MAY FIND YOURSELF WONDERING HOW THE PROCEDURE CAN GET SO CONVOLUTED STILL AT TODAY'S LOW INTEREST RATES THE SAVINGS CAN BE SUFFICIENTLY SIGNIFICANT TO PUT UP WITH THE GRIEF YOU ARE APT TO ENCOUNTER ON THE TWOMONTH ODYSSEY REFINANCING TYPICALLY ENTAILS THE OLD RULE OF THUMB WAS THAT MORTGAGE RATES NEEDED TO DROP TWO PERCENTAGE POINTS BEFORE IT MADE ANY SENSE TO REFINANCE NO MORE TODAY PEOPLE ARE REFINANCING FOR A SINGLE PERCENTAGE POINT OR LESS THE KEY IS HOW LONG YOU ARE GOING TO STAY IN YOUR PRESENT HOME SAYS MR ENRIGHT A ROUGH RULE HE SAYS IS TO DIVIDE THE TOTAL CLOSING COSTS BY THE AMOUNT OF MONEY SAVED EACH MONTH BY REFINANCING TO FIND OUT HOW LONG IT WILL TAKE TO BREAK EVEN IF THE NUMBERS WORK OUT THE NEXT STEP IS TO START THE PAPERWORK LOGIC WOULD SEEM TO DICTATE THAT THERE WOULD BE FAR LESS PAPERWORK FOR A REFINANCING THAN FOR THE ORIGINAL MORTGAGE PARTICULARLY IF YOU GO BACK TO YOUR LENDER AND SIMPLY RENEGOTIATE THE RATE AFTER ALL THAT LENDER ALREADY HAS YOUR CREDIT HISTORY PLOT PLAN AND PROPERTY APPRAISAL BUT THAT HAS NOTHING TO DO WITH IT SAYS ROGER HARRINGTON A MORTGAGE ADVISER IN WHITE BEAR LAKE MINN THAT'S BECAUSE MOST MORTGAGES ARE PACKAGED AND SOLD ON THE SECONDARY MARKET YOUR ORIGINAL LENDER PROBABLY DOESN'T OWN YOUR MORTGAGE ANY MORE EVEN IF YOU ARE STILL SENDING PAYMENTS THERE SOME BANKS PARTICULARLY IN SMALL TOWNS DO HANG ONTO SOME OF THEIR LOANS TYPICALLY THEIR ADJUSTABLERATE MORTGAGES SAYS SIDNEY LENZ AN EXECUTIVE VICE PRESIDENT AT COUNTRYWIDE FUNDING CORP PASADENA CALIF IT NEVER HURTS TO ASK THE QUESTION SHE SAYS BUT GENERALLY YOU CAN EXPECT THE ANSWER TO BE NO THE MAJOR EXCEPTION IS IF YOU HOLD A FEDERAL HOUSING AUTHORITY OR VETERANS ADMINISTRATION MORTGAGE BOTH AGENCIES OFFER A STREAMLINED PROCESS FOR RENEGOTIATING MORTGAGE RATES IF YOU'VE MADE YOUR PAYMENTS ON TIME AND AREN'T INCREASING THE SIZE OF YOUR LOAN THE REASONING SAYS MS LENZ IS THAT A HOMEOWNER ALREADY MEETING PAYMENTS SHOULD CERTAINLY BE ABLE TO HANDLE LOWER PAYMENTS BECAUSE THIS REASONING HASN'T PENETRATED THE SECONDARY MORTGAGE MARKET HOWEVER MOST PEOPLE END UP STARTING OVER AND THAT MEANS IT'S DEJA VU ALL OVER AGAIN WHEN IT COMES TO THE PAPERWORK APPLICANTS WILL NEED NEW APPRAISALS CREDIT CHECKS TITLE INSURANCE AND POSSIBLY EVEN NEW PLOT PLANS AND SITE INSPECTIONS PAPERWORK IS GENERALLY OUTDATED AT 120 DAYS EXPLAINS MS LENZ NOTING APPRAISALS ARE THE MOST TIMESENSITIVE DOCUMENTS LAND SURVEYS MAY BE GOOD FOR SEVERAL YEARS AND SOME LENDERS DON'T REQUIRE THINGS LIKE TERMITE INSPECTIONS IF THE ORIGINAL MORTGAGE WAS WRITTEN RECENTLY BUT EACH LENDER HAS DIFFERENT RULES ONE MAY REQUIRE A NEW SITE PLAN WHILE ANOTHER DOESN'T BEFORE YOU GO OUT AND DO HUNDREDS OF DOLLARS OF SURVEYS MAKE SURE THE NEW LENDER REQUIRES THEM SAYS PAUL HAVEMANN OF HSH ASSOCIATES BUTLER NJ WHO PAID FOR WATER AND SEWER INSPECTIONS ONLY TO FIND HIS NEW LENDER DIDN'T NEED THEM THE RULES ALSO VARY FROM STATE TO STATE IN NEW YORK FOR EXAMPLE THERE IS A MORTGAGE TAX THAT COSTS BORROWERS 175 OF THEIR MORTGAGE TO AVOID PAYING THAT TAX ON A REFINANCING RESIDENTS NEED TO HAVE THEIR OLD LENDER ASSIGN THEIR MORTGAGE TO THE NEW LENDER BUT A LOT OF BANKS WON'T DO IT SAYS FRANK GOODEN OF FIRST MERCHANTS INC BROOKLYN THE PRACTICE OF USING A LAWYER ALSO VARIES YOU MAY NOT NEED A LAWYER SAYS MR HAVEMANN HIS STATE DIDN'T REQUIRE HIM TO USE AN ATTORNEY BUT HE HIRED ONE ANYWAY THERE IS A LOT OF PAPERWORK TO BE FILED AT THE COUNTY COURTHOUSE AND I WAS WILLING TO PAY SOMEONE TO DO THAT THE CLOSING BRINGS ITS OWN SET OF PROBLEMS HERE THE TRICK IS TO MAKE ALL THE NUMBERS MATCH FOR EXAMPLE MR ENRIGHT THE RIVER VALE NJ FINANCIAL PLANNER FOUND THAT HIS LATEST MORTGAGE PAYMENT WASN'T CREDITED IN HIS CLOSING PAPERS AND SOMETIMES PEOPLE FIND THAT THE CLOSING COSTS ARE MORE THAN EXPECTED LEAVING THEM NETTING LESS MONEY THAN ANTICIPATED FROM THE NEW MORTGAGE THAT MEANS THEY HAVE TO COME UP WITH SOME OUTOFPOCKET CASH TO CLOSE DON'T PLAN ON GETTING THE ESCROW MONEY BACK FROM YOUR OLD LENDER AT CLOSING THE OLD LENDER MAY HOLD ONTO THOSE FUNDS FOR AS LONG AS 60 DAYS TO ENSURE THERE AREN'T ANY TAX OR INSURANCE BILLS OUTSTANDING AND IT'S WISE TO DOUBLECHECK THE ESCROW REFUND WHEN IT DOES COME TO MAKE SURE YOU DIDN'T FOR EXAMPLE END UP WITH BOTH LENDERS PAYING YOUR TAXES OTHER POSTCLOSING KINKS NEWLY REFINANCED HOMEOWNERS MAY NOT GET THEIR NEW MORTGAGE COUPON BOOKS UNTIL AFTER THEIR FIRST PAYMENT IS DUE NONETHELESS IF YOU DON'T MAKE THE PAYMENT ON TIME YOU ARE GOING TO GET A PENALTY SAYS MR HARRINGTON THE MORTGAGE ADVISER AND DON'T BE SURPRISED EITHER IF YOUR NEW MORTGAGE IS SOLD ALMOST IMMEDIATELY GENERATING YET ANOTHER COUPON BOOK WITH PAYMENTS TO A DIFFERENT LENDER BUT BE WARNED HOMEOWNERS HAVE BEEN KNOWN TO GET PHONY NOTICE OF SUCH SALES AS PART OF MORTGAGESERVICING SCAMS SO DON'T MAKE ANY PAYMENTS UNLESS YOU GET PROPER NOTIFICATION FROM THE LENDER WHO WROTE THE MORTGAGE THERE'S NO LIMIT ON THE NUMBER OF TIMES YOU MAY REFINANCE FINANCIAL ADVISERS SAY THEY HAVE CLIENTS WHO HAVE REFINANCED AS MANY AS FOUR TIMES DURING THE PAST THREE YEARS AS LONG AS IT MAKES SENSE WHY NOT SAYS MR ENRIGHT AS LONG AS YOU DON'T MIND GOING THROUGH THE AGGRAVATION 9303120145 930312 FINANCING BUSINESS STAODYN INC STAODYN INC LONGMONT COLO SAID IT REDUCED ITS PROPOSED PUBLIC OFFERING TO 1150000 UNITS FROM 13 MILLION UNITS EACH CONSISTING OF ONE SHARE OF COMMON STOCK AND ONE WARRANT DUE TO MARKET CONDITIONS THE MAKER OF MEDICAL DEVICES ALSO SAID THE PROPOSED OFFERING WOULD PROVIDE 150000 UNITS FOR OVERALLOTMENTS BY THE UNDERWRITERS 9303120144 930312 HEARD ON THE STREET PRIVATELABEL STOCK PRICES ARE SURGING BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET IS PAYING HIGH PRICES IN A SCRAMBLE TO PROFIT FROM CONSUMERS' CRAZE FOR LOW PRICES STOCK PRICES ARE SURGING FOR MAKERS OF LOWCOST PRIVATELABEL GOODS THE MANUFACTURERS OF PRESIDENT'S AMERICAN CHOICE COLA AND DUANE READE MOUTHWASH ARE TRADING AT 40 TO 45 TIMES EARNINGS AHEAD OF MANY CELEBRATED BRANDNAME COMPANIES INVESTORS AREN'T READY TO RETREAT EVEN THOUGH STOCK PRICES FOR A BASKET OF 12 PRIVATELABEL BUSINESSES HAVE JUMPED 114 SINCE YEAR END COMPARED WITH 26 FOR A BASKET OF MAJORBRAND COMPANIES AND 47 FOR THE DOW JONES INDUSTRIAL AVERAGE THE REASON BULLS PREDICT EXPLOSIVE SALES OF PRIVATELABEL GOODS FOR YEARS TO COME THESE STOCKS WILL CONTINUE TO OUTPERFORM PREDICTS GABRIEL D LOWY ANALYST AT GRUNTAL ADDS OPPENHEIMER'S DAVID A GOLDMAN IT'S SOMETHING A LOT OF INVESTORS HAVE LARGELY MISSED TO DATE THIS IS NOT THE PRIVATELABEL OF PAST DAYSTHIS IS A NEW GENERATION OF HIGHQUALITY GOODS PRIVATELABEL PRODUCTS HAVE WIDENED THEIR SHARE OF THE MARKET BY SUPPLYING PRODUCTS PRICED 20 TO 40 LOWER THAN MAJOR BRANDS WHO'S THE BIG LOSER OFTEN THE NO 3 NATIONAL BRAND IN A CATEGORY WHICH MAY BE STRUGGLING BECAUSE IT LACKS THE DEVOTED FOLLOWING OF THE LEADERS MANY ANALYSTS LIKE COTT A LEADING PRIVATELABEL SOFTDRINK MAKER BASED IN TORONTO IT MAKES A COLA THAT TASTES SURPRISINGLY GOOD COMPARED WITH COKE AND PEPSI ANALYSTS SAY THE SECRET ROYAL CROWN CONCENTRATE USED UNDER AN EXCLUSIVE PRIVATELABEL CONTRACT COTT IS THRIVING BECAUSE THEY'VE UPGRADED THE QUALITY OF THEIR PRODUCTS TO BE QUITE COMPETITIVE WITH THE NATIONAL BRANDS SAYS WILLIAM J CHISHOLM AN ANALYST WITH THE TORONTOBASED BROKERAGE LOEWEN ONDAATJE MCCUTCHEON THE STOCK HAS QUADRUPLED IN THE PAST YEAR TO 35 1/4 UP 1 1/2 YESTERDAY FOR A HEADY MULTIPLE OF AROUND 44 TIMES TRAILING 12MONTH EARNINGS MR CHISHOLM PREDICTS COTT'S SALES WILL GROW 70 THIS YEAR TO MORE THAN 500 MILLION CANADIAN DOLLARS US4015 MILLION EARNINGS COULD REACH C1 A SHARE THIS YEAR UP FROM AN ESTIMATED 45 CANADIAN CENTS IN THE YEAR ENDED IN JANUARY MR CHISHOLM WARNS THAT THE STOCK SEEMS FULLY PRICED FOR THE SHORT RUN BUT HE STILL SEES COTT AS AN ATTRACTIVE LONGTERM PLAY IN THE PRIVATELABEL REVOLUTION SAYING COTT'S EXPLOSIVE GROWTH WILL BE MAINTAINED IN 1993 AND PROBABLY BEYOND AND COTT ISN'T ALONE ANALYSTS SAY THEY ARE PROWLING FOR STOCK PICKS AMONG SUPPLIERS OF LOWPRICED FOOD DRUGS TOBACCO AND OTHER CONSUMER ITEMS THESE GOODS ARE SOLD AT GROCERS AND DISCOUNT RETAILERS UNDER A STOREBRAND NAME SUCH AS DUANE READE FOR PERRIGO OR A CONTROLLED LABEL SUCH AS SAM'S AMERICAN CHOICE OR PRESIDENT'S AMERICAN CHOICE FOR COTT IT'S A REVOLUTION SAYS OPPENHEIMER'S MR GOLDMAN THESE COMPANIES ARE IN THE INFANCY OF THEIR GROWTH HIGH QUALITY STANDARDS ARE BUOYING PERRIGO A LEADING MANUFACTURER OF PRIVATELABEL OVERTHECOUNTER DRUGS AND STOREBRAND PERSONALCARE PRODUCTS ANALYSTS NOW VIEW THE COMPANY'S PRODUCTS AND PACKAGING AS COMPETITIVE WITH NATIONAL BRANDS AS MORE PRESCRIPTION DRUGS BECOME OVERTHECOUNTER PRODUCTS IN THE YEARS AHEAD PERRIGO WILL BE ABLE TO SUPPLY THEM AT LOW PRICES MR LOWY SAYS QUALITY WON'T BE A PROBLEM AS ALL DRUG PRODUCTS MUST MEET THE SAME FEDERAL STANDARDS PERRIGO ALSO SHOULD START REAPING REWARDS FROM ITS HEAVY SPENDING TO BOOST PRODUCTIVITY MR LOWY PREDICTS EARNINGS WILL GROW TO 113 A SHARE IN THE FISCAL YEAR THROUGH JUNE FROM 82 CENTS A SHARE LAST YEAR THAT PUTS THE STOCK AT AROUND 39 TIMES CURRENTYEAR EARNINGS SOUND HIGH NOT TO WORRY HE'S PREDICTING A 39 LEAP IN SALES THIS YEAR TO AROUND 568 MILLION PRIVATELABEL GOODS ACCOUNTED FOR 184 OF UNIT SALES AT US SUPERMARKETS IN THE FOURTH QUARTER COMPARED WITH 164 IN 1989 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN BUT IF YOU ALSO COUNT DRUG CHAINS MASS MERCHANDISERS AND CLUB STORES MR LOWY ESTIMATES PRIVATE LABEL'S MARKET SHARE IS ALREADY 22 TO 23 AND SOME THINK 30 IS POSSIBLE IN THE FUTURE WEAKENING BRAND LOYALTY IS GOOD NEWS FOR NASDAQTRADED DIBRELL BROTHERS AN IMPORTER OF LOWCOST TOBACCO OPPENHEIMER'S MR GOLDMAN SAYS SOARING SALES OF DISCOUNT CIGARETTES UP MORE THAN 100 LAST YEAR TRANSLATE INTO STRONG GROWTH FOR DIBRELL HE PREDICTS THE COMPANY WILL SEE 29 GROWTH IN PERSHARE OPERATING PROFIT TO 265 FOR THE FISCAL YEAR THROUGH JUNE DIBRELL'S STOCK NOW AT 36 UP 3/8 YESTERDAY HAS PLUNGED 17 SINCE THE START OF THE YEAR AS TOBACCO STOCKS GOT POUNDED BY FEARS OF PRESIDENT CLINTON'S EXPECTED SIN TAXES BUT MR GOLDMAN SAYS INVESTORS ARE MISSING THE POINT HE ARGUES THAT ANY TAX INCREASE WOULD ACCELERATE THE MOVE TO LOWERPRICED CIGARETTES HELPING DIBRELL'S SALES THEN THERE'S NUTRAMAX PRODUCTS NOW AT 14 1/8 OFF 1/8 YESTERDAY A NASDAQTRADED MANUFACTURER OF PRIVATELABEL DISPOSABLE DOUCHES ENEMAS AND BABYBOTTLE LINERS MR LOWY EXPECTS A 25 SALES INCREASE THIS YEAR THANKS TO WIDER DISTRIBUTION AND NEW PRODUCTS NUTRAMAX APPLIES MARKETING AND MERCHANDISING PROGRAMS THAT COMPARE IN SOPHISTICATION TO THOSE OF NATIONAL BRANDS MR LOWY SAYS PRIVATELABEL MANUFACTURERS ARE OFTEN ABLE TO KEEP COSTS AT ROCKBOTTOM LEVELS MR LOWY PUTS NASDAQTRADED JUST TOYS NEAR THE TOP OF HIS RECOMMENDED LIST BECAUSE IT COMBINES HIGH EFFICIENCY AND SUPERB CUSTOMER SERVICE HE ENVISIONS SALES CLIMBING 48 THIS YEAR BUOYED BY SUCH PRODUCTS AS SUPER TUFF FOAM SPORTS BALLS AND BENDEMS RUBBERIZED PLASTIC BENDABLE FIGURES THE STOCK CLOSED AT 16 1/2 SO IT'S TRADING AT 14 1/2 TIMES 1992 EARNINGS OF 110 A SHARE ALSO ON ANALYSTS' RECOMMENDED LIST IS GRIST MILL A LEADING SUPPLIER IN THE FASTGROWING PRIVATELABEL FOOD SECTOR THE COMPANY ALREADY DOMINATES THE MARKET IN PRIVATELABEL GRANOLA BARS AND HAS 70 OF THE MARKET FOR PRIVATELABEL PIE CRUSTS IF YOU BUY A STOREBRAND GRANOLA BAR THERE'S A 99 CHANCE GRIST MILL MADE IT SAYS OPPENHEIMER'S MR GOLDMAN HE APPLAUDS THE COMPANY'S RECENT DECISION TO ENTER THE PRIVATELABEL CEREAL MARKET IT'S A VERY LUCRATIVE AREA FOR GROWTH BECAUSE OF RAPID PRICE INCREASES BY THE MAJOR BRANDS OVER THE LAST FEW YEARS MR GOLDMAN SAYS AT 11 1/8 THE STOCK TRADES AT 19 TIMES TRAILING EARNINGS ONE HOT PRIVATELABEL STOCK IS DIAPER MAKER PARAGON TRADE BRANDS BASED IN TACOMA WASH SINCE PARAGON BECAME AN INDEPENDENT PUBLIC COMPANY IN LATE JANUARY WITH AN INITIAL PUBLIC OFFERING ON THE NEW YORK STOCK EXCHANGE AT 19 THE STOCK HAS SOARED TO 29 PRIOR TO THE IPO PARAGON WAS WEYERHAEUSER'S PRIVATELABEL DIAPER LINE PRO FORMA EARNINGS FOR 1992 WERE 155 A SHARE BULLISH ANALYSTS BELIEVE CONSUMERS WON'T SWITCH BACK TO HIGHERPRICED BRANDS ONCE THE ECONOMY REVIVES THAT HAS BEEN THE PATTERN IN THE PAST BUT THE ANALYSTS SEE TODAY'S PRIVATELABEL PHENOMENON AS A LONGTERM TREND RATHER THAN A CYCLICAL EVENT WHAT'S DIFFERENT NOW IS THAT AFTER EARLIER RECESSIONS THE AMERICAN DREAM LIVED ON SAYS MR GOLDMAN THIS TIME IT DOESN'T DISPOSABLE INCOME WILL CONTINUE TO DECLINE FOR YEARS TO COMESO VALUE IS THE KEY ALTHOUGH MANY OF THESE STOCKS HAVE RUN UP SHARPLY WALL STREET ANALYSTS ARE STILL BULLISH FOR THE LONG TERM 9303120143 930312 MARRIOTT CORP MODIFIES PLAN TO SPLIT IN TWO REVISIONS SEEK TO COOL IRE OF MAJOR BONDHOLDERS BUT OPPOSITION PERSISTS BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MARRIOTT CORP SEEKING TO MOLLIFY ANGRY BONDHOLDERS AGREED TO MODIFY A PLAN TO SPLIT THE COMPANY INTO A HIGHGROWTH HOTELMANAGEMENT ARM AND A FAR MORE SPECULATIVE REALESTATE COMPANY THE REVISED PLAN REACHED WITH A GROUP OF INSTITUTIONS HOLDING ABOUT 400 MILLION OF MARRIOTT'S 19 BILLION IN PUBLICLY TRADED DEBT SEEKS TO MAKE THE REALESTATE ENTITY LESS RISKY IT MOVES 450 MILLION OF DEBT FROM THE REALESTATE ARM HOST MARRIOTT CORP TO THE OTHER ENTITY MARRIOTT INTERNATIONAL INC THE PLAN ALSO PROPOSES THAT EXISTING DEBT BE SWAPPED FOR BONDS PAYING 100 BASIS POINTS MORE IN INTEREST AND GENERALLY EXTENDING MATURITIES BY AS LONG AS FOUR YEARS IN ADDITION MARRIOTT INTERNATIONAL WHICH WILL BE A HOTELMANAGEMENT COMPANY WILL PROVIDE AS MUCH AS 125 MILLION IN FINANCING FOR THE PHILADELPHIA MARRIOTT HOTEL CURRENTLY BEING BUILT AND PROVIDE 200 MILLION OF A 630 MILLION LINE OF CREDIT TO HOST MARRIOTT AND THE CURRENT MARRIOTT CORP WILL ISSUE AS MUCH AS 70 MILLION IN STOCK TO RETIRE BONDS THE PLANS PARES TO 21 BILLION FROM 26 BILLION THE DEBT THAT HOST MARRIOTT WOULD HAVE CARRIED UNDER THE ORIGINAL PLAN MARRIOTT INTERNATIONAL ON THE OTHER HAND WOULD BOOST ITS DEBT TO ABOUT 900 MILLION FROM 230 MILLION UNDER THE REVISION SMITH BARNEY HARRIS UPHAM & CO ANALYST JOSEPH DOYLE CALLED THE HIGHER DEBT LEVEL MANAGEABLE FOR MARRIOTT INTERNATIONAL NOTING THAT THE PLAN LEAVES THE REALESTATE ARM A STRONGER ENTITY FINANCIALLY IT'S STILL TOO EARLY HOWEVER TO PREDICT WHETHER THE MAJORITY OF MARRIOTT'S BONDHOLDERS WHO DIDN'T NEGOTIATE THE NEW DEAL WILL OPT FOR THE REVISED PLAN SETTLE FOR THE ORIGINAL ONE OR CHOOSE TO JOIN THE DISSIDENTS MOODY'S INVESTORS SERVICE INC ANALYST DOROTHY LEE NOTED THE COMPANY HASN'T YET DISCLOSED COVENANTS THAT MAY PROVIDE BONDHOLDERS WITH EXTRA PROTECTION PRICES OF MARRIOTT BONDS CONTINUED TO ADVANCE YESTERDAY WITH MOST ACTIVE ISSUES PICKING UP TWO POINTS OR 20 FOR A BOND WITH A 1000 FACE AMOUNT BONDHOLDERS SAVAGED THE COMPANY WHEN THE PLAN WAS ANNOUNCED IN OCTOBER THE VALUE OF THE COMPANY'S BONDS PLUMMETED RATINGS SERVICES DOWNGRADED THE BONDS TO JUNKBOND STATUS AND SOME BONDHOLDERS SUED ASSERTING THE COMPANY HAD SOLD BONDS WITHOUT DISCLOSING THE PLANS TO DIVIDE THE HOTEL AND LODGING COMPANY MARRIOTT COMMON SHARES ON THE OTHER HAND HAVE RISEN SINCE THE PLAN WAS ANNOUNCED YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MARRIOTT COMMON CLOSED AT 2650 UP 75 CENTS ON HEAVY VOLUME STEPHEN F BOLLENBACH MARRIOTT'S CHIEF FINANCIAL OFFICER SAID HE'S CONFIDENT THE REVISED PLAN WILL GARNER THE REQUIRED SUPPORT OF THE COMPANY'S BONDHOLDERS BUT STANDARD & POOR'S CORP ANALYST ROBERT C NELSON SAID THE PLAN ISN'T LIKELY TO PUSH HOST MARRIOTT'S RATING ABOVE JUNKBOND STATUS AND A DISSIDENT GROUP OF BONDHOLDERS LED BY PPM AMERICA INC OF CHICAGO VOWED TO ENLIST OPPOSITION TO THE PLAN WE'LL PROCEED TO PERSUADE THE GREAT MASSES OF THE UNDECIDED NOT TO ACCEPT THIS PROPOSAL SAID F JOHN STARK III COUNSEL TO PPM AMERICA AN INVESTMENT SUBSIDIARY OF PRUDENTIAL CORP PLC OF LONDON MARRIOTT ALSO AGREED TO SETTLE CLASSACTION SUITS FILED BY ANOTHER GROUP OF HOLDERS WHO SOLD THEIR MARRIOTT BONDS FOLLOWING THE COMPANY'S ORIGINAL ANNOUNCEMENT THE PROPOSAL CALLS FOR HOST MARRIOTT TO PAY THE GROUP 1 MILLION FOR ATTORNEYS' FEES AND EXPENSES AND TO PROVIDE WARRANTS TO BUY AS MANY AS 77 MILLION SHARES OF ITS COMMON STOCK THE REVISED PLAN WON THE IMPRIMATUR OF THREE MAJOR INSTITUTIONS CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM TEACHERS INSURANCE & ANNUITY ASSOCIATION AND IDS FINANCIAL SERVICES THOSE BONDHOLDERS WERE ARMED WITH THE NEGOTIATING MUSCLE OF INVESTMENT BANKER GOLDMAN SACHS & CO AND THE NEW YORK LAW FIRM OF WACHTELL LIPTON ROSEN & KATZ CONFIDENT THE PLAN WILL BE APPROVED ONE FINANCIAL ADVISER TO MARRIOTT SUGGESTED THAT THE STRUCTURE OF THE PROPOSED SWAP OFFER WILL PROVIDE STRONG FINANCIAL INCENTIVES TO THE DISSIDENT GROUP AND OTHER BONDHOLDERS TO EXCHANGE THEIR BONDS DETAILS HAVEN'T YET BEEN DISCLOSED 9303120142 930312 PEPPERAND SALT THE SELECTION MAKES ME DIZZY BUT I CAN'T GO I'M TOO BUSY IS WHAT THERE'S NOTHING LEFT TO SHOPPING LIST REMEMBERABILIA 9303120141 930312 LUCENTE STEPS DOWN AS NO 2 EXECUTIVE AT NORTHERN TELECOM NEW YORK THE DOOR CONTINUES TO REVOLVE AT NORTHERN TELECOM LTD WHERE ANOTHER TOP OFFICER EDWARD LUCENTE HAS ABRUPTLY RESIGNED MR LUCENTE NORTHERN TELECOM'S EXECUTIVE VICE PRESIDENT AND A FORMER EXECUTIVE OF INTERNATIONAL BUSINESS MACHINES CORP WASN'T AVAILABLE TO COMMENT ON HIS DEPARTURE HE JOINED NORTHERN TELECOM ABOUT TWO YEARS AGO AND BECAME ITS NO 2 EXECUTIVE HIS RESIGNATION ANNOUNCED IN AN INTERNAL MEMO IS PART OF A SHAKEUP THAT BEGAN LAST FALL AT THE CANADIAN TELECOMMUNICATIONS EQUIPMENT MAKER IT'S A PERSONAL DECISION ON HIS PART AND HE HAS CHOSEN NOT TO ANNOUNCE HIS PLANS A COMPANY SPOKESMAN SAID IT'S AN ORDERLY TRANSITION THE STRUCTURE OF THE COMPANY IS NOT CHANGING IN OCTOBER BCE INC WHICH OWNS 527 OF NORTHERN TELECOM INSTALLED JEAN C MONTY THE TOP EXECUTIVE OF ITS PHONE UNIT BELL CANADA AS NORTHERN TELECOM'S PRESIDENT AND CHIEF OPERATING OFFICER UNDERCUTTING CHAIRMAN PAUL G STERN'S AUTHORITY AND MAKING MR LUCENTE'S POSITION SUPERFLUOUS COMPANY INSIDERS SAID MR STERN SUBSEQUENTLY RESIGNED IN LATE JANUARY AS CHIEF EXECUTIVE OFFICER TO BECOME A VISITING EXECUTIVE PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA'S WHARTON SCHOOL OF BUSINESS HE REMAINS A NONGOVERNING CHAIRMAN FOR AN UNSPECIFIED PERIOD MR MONTY WHO NOW HOLDS THE PRESIDENT CEO AND CHIEF OPERATING OFFICER POSTS AT NORTHERN TELECOM WAS GIVEN THE NEW ASSIGNMENT TO KEEP CLOSER TABS ON THE COMPANY WHICH HAS FALLEN BEHIND ITS RIVALS IN THE DELIVERY OF KEY EQUIPMENT SUCH AS FIBEROPTIC TRANSMISSION GEAR AND CELLULAR PHONE EQUIPMENT ACCORDING TO COMPANY INSIDERS THOSE RIVALS INCLUDE AMERICAN TELEPHONE & TELEGRAPH CO FRANCE'S ALCATEL ALSTHOM SWEDEN'S LM ERICSSON GERMANY'S SIEMENS AG AND JAPAN'S FUJITSU LTD AND NEC CORP THE NORTHERN TELECOM SPOKESMAN COUNTERED THAT WE'RE DOING THE RIGHT THINGS IN WIRELESS EVEN THOUGH WE'RE LATE HE SAID MONTY'S CONTACTS WITH OUR CUSTOMERS THE REGIONAL BELL COMPANIES ARE DYNAMITE AND THIS WAS SEEN AS A PLUS 9303120140 930312 BUSINESS BRIEF BRIDGE OIL LTD OIL COMPANY POSTS 37 RISE IN OPERATING PROFIT FOR 1992 BRIDGE OIL LTD OF AUSTRALIA SAID OPERATING PROFIT AFTER TAXES ROSE 37 IN 1992 TO 394 MILLION AUSTRALIAN DOLLARS 278 MILLION FROM A287 MILLION IN 1991 SALES FELL 85 TO A1792 MILLION FROM A1958 MILLION THE OIL COMPANY SAID MOST OF ITS OPERATIONS ARE STILL IN THE US WHERE IT PRODUCED 65 MILLION OF ITS 10 MILLION BARRELS OF OIL EQUIVALENT IT SAID 56 OF SALES REVENUE CAME FROM THE US BRIDGE OIL SAID THAT IN THE CURRENT FISCAL YEAR THE COMPANY IS OPERATING PROFITABLY AND AHEAD OF BUDGET THE COMPANY SAID IT DIDN'T PAY A DIVIDEND IN 1992 FOR TAX REASONS INSTEAD IT WILL PAY A TWOCENT DIVIDEND FOR THE FIRST HALF OF 1993 THE DIVIDEND WILL BE PAID JULY 2 TO SHAREHOLDERS REGISTERED MAY 19 PROVIDED THERE IS NO MAJOR CHANGE IN OPERATING CONDITIONS PRIOR TO DEC 31 BRIDGE SAID IT EXPECTS TO DECLARE A 1993 DIVIDEND 9303120139 930312 MARKETING & MEDIA MUSIC SALES JUMP INTO THE GROOVE AFTER DOWNBEAT '91 BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MUSIC SALES REBOUNDED STRONGLY IN 1992 THE FIRST YEAR IN WHICH MORE COMPACT DISKS WERE SOLD IN THE US THAN AUDIO CASSETTES THE RECORDING INDUSTRY ASSOCIATION OF AMERICA A WASHINGTON TRADE GROUP SAID OVERALL MUSIC SALES ROSE 15 LAST YEAR TO 9 BILLION UNIT SALES INCLUDING CASSETTE TAPES CDS MUSIC VIDEOS AND RECORDS WERE UP 118 THE TREND IS GOOD NEWS FOR THE MUSIC BUSINESS FOLLOWING A DISMAL 1991 IN WHICH US UNIT SALES DROPPED 75 WE DIDN'T HAVE THE GULF WAR THIS YEAR THE ECONOMY IMPROVED AND IT WAS A GREAT CHRISTMAS SAID MIKE SHALETT CHIEF OPERATING OFFICER OF SOUNDSCAN INC OF HARTSDALE NY WHICH COMPILES THE SALES NUMBERS FOR THE BILLBOARD CHARTS I THINK THE HEALTHIEST SIGN FOR THE MUSIC BUSINESS IS THAT THE SALES WERE SPREAD ACROSS A LOT OF GENRES AND INCLUDED EMERGING ARTISTS AS WELL AS SUPERSTARS MR SHALETT ADDED THERE WERE HUGE SALES FOR COUNTRY SINGERS LIKE GARTH BROOKS AND BILLY RAY CYRUS BUT ALSO GREAT SALES FOR NEW YOUNG ROCK BANDS LIKE NIRVANA AND PEARL JAM AND A BIG HIT POP ALBUM FROM WHITNEY HOUSTON'S BODYGUARD' SOUNDTRACK ANALYSTS SAY THE RIAA FIGURES EXCEEDED THEIR ESTIMATES SOMEWHAT BUT WARN THAT THE INDUSTRY SHOULDN'T EXPECT GROWTH TO CONTINUE AT THIS PACE I THINK THESE NUMBERS ARE SOMETHING OF AN ABERRATION SHOWING PENTUP DEMAND FROM THE RECESSION SAID LISBETH BARRON AN ENTERTAINMENT INDUSTRY ANALYST WITH SG WARBURG MY PREDICTION IS THAT FOR 1993 AND THE NEXT THREE YEARS ANNUAL SALES GROWTH WILL BE SEVERAL PERCENTAGE POINTS BELOW WHAT IT HAS BEEN HISTORICALLY FOR THE MUSIC BUSINESS TIME WARNER INC FOR ONE HAS ESTIMATED ITS UNIT GROWTH FOR THIS YEAR WILL BE ABOUT 5 THE TRENDS CONFOUNDED SOME INDUSTRY EXPERTS' PREDICTIONS THAT THE CD MARKET AFTER A STEEP RISE HAD MORE OR LESS REACHED A PLATEAU SALES OF CD'S ROSE 223 TO 4075 MILLION UNITS SHOWING FASTER GROWTH THAN 1991'S GAIN OF ABOUT 16 THIS SHOWS THAT THE GROWTH OF THE CD STILL HAS A GOOD WAY TO GO SAID JACK EUGSTER CHIEF EXECUTIVE OFFICER OF MUSICLAND GROUP ONE OF THE COUNTRY'S BIGGEST CHAINS OF RECORD STORES HE SAID ANOTHER REASON FOR THE INDUSTRY'S BIG SALES GAINS WAS A CONTINUING BURST OF GROWTH IN NEW STORES INCLUDING SUPERSTORES MUSICLAND ALONE WHICH HAS 1135 STORES OPENED 94 MORE STORES THAN THEY CLOSED LAST YEAR ANOTHER UNEXPECTED DEVELOPMENT CASSETTE SALES ROSE THOUGH ONLY 17 IN UNITS PROVING THAT THE FORMAT IS FAR FROM DEAD OVERALL CASSETTES REPRESENTED 47 OF FULLLENGTH ALBUM SALES ESPECIALLY ROBUST WAS THE GAIN IN SALES OF MUSIC VIDEOS A 246 GAIN IN UNIT SALES BUT MUSIC VIDEOS CONTINUE TO BE A SMALL PART OF THE TOTAL MUSIC PIE TOTALING ABOUT 1574 MILLION IN SALES COMPARED WITH CD SALES OF 53 BILLION AND CASSETTE SALES OF 31 BILLION 9303120138 930312 RTZ CORP'S PROFIT ROSE 21 IN '92 STOCK FALLS ON POOR OUTLOOK SPECIAL TO THE WALL STREET JOURNAL LONDON RTZ CORP REPORTED A 21 RISE IN 1992 NET INCOME BUT THE BRITISH MINING COMPANY'S SHARES FELL IN RESPONSE TO THE WEAK OUTLOOK GIVEN FOR METALS PRICES AND INCREASED DEBT ROBERT WILSON CHIEF EXECUTIVE OFFICER SAID TRADING CONDITIONS REMAINED DIFFICULT DURING THE YEAR AGAINST A BACKGROUND OF CONTINUING RECESSION IN MANY PARTS OF THE WORLD AND LOWER METALS PRICES WE HAVE SELDOM SEEN WORSE MARKETS THAN THOSE OF THE LAST TWO YEARS HE SAID IN LONDON TRADING YESTERDAY RTZ SHARES FELL TO 675 PENCE 968 DOWN 13 PENCE NET INCOME ROSE TO 249 MILLION 3571 MILLION FROM 205 MILLION A YEAR EARLIER PRETAX PROFIT WAS UP 23 TO 537 MILLION SALES DECLINED 56 TO 461 BILLION FROM 489 BILLION THE YEAREARLIER RESULTS WERE RESTATED TO REFLECT NEW BRITISH FINANCIAL REPORTING STANDARDS EXCEPTIONAL CHARGES TOTALED 93 MILLION IN 1992 SHORTTERM DEBT ROSE TO 386 MILLION FROM 194 MILLION FOREIGNEXCHANGE MOVEMENTS HAD A SIGNIFICANT IMPACT ON THE COMPANY'S BALANCE SHEET THE DEVALUATION IN SEPTEMBER OF STERLING MEANT ASSETS AND LIABILITIES WHICH IN THE CASE OF RTZ ARE PREDOMINANTLY NONSTERLING INCREASED IN STERLING TERMS BUT WITH THE BULK OF RTZ'S DEBT DENOMINATED IN US DOLLARS ITS DEBT RATIO ROSE TO 34 FROM 27 ACQUISITIONS ANNOUNCED IN 1993 WILL BOOST THIS DEBT RATIO INITIALLY TO 63 BUT THIS IS EXPECTED TO BE REDUCED BY ASSET SALES DURING THE YEAR MINING AND METALS ACTIVITIES CONTRIBUTED 314 MILLION TO TOTAL PROFIT UP 6 FROM 1991 AND ACCOUNTED FOR 77 OF TOTAL EARNINGS COMPARED WITH 71 A YEAR EARLIER INDUSTRIAL MINERALS CONTRIBUTED 17 MILLION 7 LOWER THAN IN 1991 AND ACCOUNTED FOR 31 OF TOTAL EARNINGS DOWN FROM 33 THE DECLINE CAME ON THE BACK OF DEPRESSED EUROPEAN AND JAPANESE ACTIVITIES RTZ'S INDUSTRIAL PRODUCTS BUSINESSES CONTRIBUTED 17 MILLION DOWN 48 THE WEAK CONSTRUCTION INDUSTRY IN NORTH AMERICA AND EUROPE WAS THE MAIN CAUSE FOR THE DECLINE 9303120137 930312 LETTERS TO THE EDITOR EXPIRED' DRUGS SAVE MILLIONS OF LIVES IN RESPONSE TO DR PHILIP ALPER'S FEB 11 EDITORIALPAGE ARTICLE CAUTIOUS LABELS WASTE SAFE DRUGS I ALSO AM APPALLED BY THE EXTRAORDINARY AMOUNT OF DRUGS DESTROYED EACH YEAR BECAUSE THEY HAVE EXPIRED DATES ON THEM WE AT AMERICARES SAVE LIVES BY USING A GREAT DEAL OF DRUG PRODUCTS THAT ARE SHORTDATED MEANING THEY ARE ABOUT TO EXPIRE WE ARE THE LARGEST PRIVATE NONPROFIT HUMANITARIAN ORGANIZATION IN THE WORLD IN 10 YEARS WE HAVE DONATED MORE THAN 655 MILLION WORTH OF MEDICINES AND MEDICAL SUPPLIES TO MORE THAN 80 COUNTRIES WE ARE KNOWN FOR OUR SPEED AND EFFICIENCY OUR OVERHEAD LAST YEAR WAS 136 AND MONEY MAGAZINE RECENTLY CITED US AS AMONG THE MOST COSTEFFECTIVE NONPROFIT ORGANIZATIONS IN THE WORLD WE ARE OFTEN CALLED THE HUMANITARIAN ARM OF CORPORATE AMERICA AT AMERICARES OUR STRUCTURE WAS DESIGNED TO MIRROR THAT OF THE PHARMACEUTICAL INDUSTRY WE WORK WITH OUR 1000 ACTIVE DONORS FROM A BUSINESS PERSPECTIVE WE BECOME PART OF A COMPANY'S INFRASTRUCTURE SATISFYING ITS NEED TO HANDLE EXCESS/OBSOLETE INVENTORY WITHOUT ANY NEGATIVE MARKET IMPACT LANDFILLS ALL OVER THE COUNTRY ARE BEING CLOSED SO PRODUCTS MUST BE TRUCKED FROM NEW JERSEY TO TEXAS FOR EXAMPLE TO BE DESTROYED OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION REGULATIONS ARE AS YOU KNOW VERY COMPLICATED AND DESTRUCTION COSTS VARY GREATLY DEPENDING ON THE NATURE OF WHAT IS BEING DESTROYED SUCH DESTRUCTION COSTS CAN BE UP TO 40 TIMES THE MANUFACTURING COSTS AND THIS DOES NOT EVEN BEGIN TO INCLUDE SUBSEQUENT SUPERFUND EXPENSES BY DONATING THESE PRODUCTS TO AMERICARES OUR COMPANIES SAVE MASSIVE DESTRUCTION COSTS WAREHOUSING EXPENSES AND HEADACHES ASSOCIATED WITH RETURNS WHILE THEY GAIN TAX BENEFITS GOOD PUBLIC RELATIONS AND BRANDNAME RECOGNITION IN EMERGING MARKETS THIS BUSINESSLIKE APPROACH IS THE KEY TO OUR SUCCESS IN FISCAL 19911992 WE MOVED EIGHT MILLION POUNDS OF PRODUCTS WORTH ABOUT 147 MILLION EIGHTY PERCENT OF THOSE PRODUCTS WERE HEALTH CARE ITEMS OUR ORGANIZATION IS LEAN AND EFFICIENT WE ARE NORMALLY AMONG THE FIRST ON THE GROUND IN ANY GIVEN DISASTER WHETHER IT IS NATURAL SUCH AS AN EARTHQUAKE OR MANMADE SUCH AS THE CONTINUING DISASTER IN BOSNIAHERZEGOVINA I HAVE RECENTLY RETURNED FROM AN AIRLIFT TO ZAGREB WHERE WE DELIVERED 96000 POUNDS OF MEDICINES ON A CONVERTED DC8 WHICH WERE THEN TRANSFERRED TO UNITED NATIONS CARGO PLANES AND BROUGHT INTO SARAJEVO WE HAVE DELIVERED A TOTAL OF 14 MILLION POUNDS OF MEDICAL SUPPLIES TO THAT REGION SINCE THE FIGHTING BEGAN WE ALSO HAVE A SERIES OF AIRLIFTS GOING TO THE KENYA/SOMALIA REGION THE LAST OF WHICH RETURNED WEDNESDAY AND WAS UNDERWRITTEN BY RIDDICK BOWE THE CHAMPION BOXER SOME OF THAT CARGO WAS FLOWN INTO MOGADISHU TO BE USED IN THE PANAFRICAN FEEDING CENTER RUN BY THE IRISH GROUP CONCERN INTERNATIONAL SADLY HOURS AFTER 23YEAROLD NURSE VALERIE PLACE SHOWED MR BOWE AND OUR GROUP AROUND THE CONCERN COMPOUND SHE WAS SHOT TO DEATH BY SOMALI BANDITS OUTSIDE AFGOI WHILE ON HER WAY TO BAIDOA VALERIE WAS ACCORDING TO ALL THOSE WHO KNEW HER AN EXCEPTIONAL HUMAN BEING AND IT IS TRAGIC THAT LIFE IN SOMALIA IS SO VERY CHEAP IN THIS SAME DESPERATE REGION WE HAVE REOPENED A HOSPITAL IN MANDERA KENYA ON THE SOMALI BORDER WHICH WILL SERVE A REGION OF MORE THAN 250000 PEOPLE WITH 146 BEDS DOCTORS AND NURSES FROM THE US'S FINEST HOSPITALS WILL BE STAFFING THIS SMALL HOSPITAL IN TWOTOSIXMONTH ROTATING SHIFTS THESE ARE BUT A FEW OF OUR MANY CONTINUING PROGRAMS TAKING PLACE IN SOME 80 COUNTRIES AROUND THE WORLD WE HAVE BEEN ABLE TO SAVE MILLIONS OF LIVES WITH DRUG PRODUCTS THAT OTHERWISE WOULD BE WASTED AT THE SAME TIME THE ENVIRONMENT IS LESS ABUSED AND COMPANIES DO NOT HAVE THE MASSIVE DESTRUCTION COSTS THAT ARE INEVITABLY PASSED ON TO THE CONSUMER 9303120136 930312 AMBER'S STORES FILES SHARES DALLAS AMBER'S STORES INC SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE PROPOSED OFFERING OF AS MANY AS 1250000 COMMON SHARES THE ARTS AND CRAFTS RETAILER SAID 750000 SHARES WILL BE SOLD BY THE COMPANY AND 500000 BY A SHAREHOLDER PROCEEDS WILL BE USED BY THE COMPANY FOR A PLANNED STORE EXPANSION AND TO SATISFY SEASONAL WORKING CAPITAL REQUIREMENTS PRINCIPAL/EPPLER GUERIN & TURNER INC AND WILLIAM BLAIR & CO WILL MANAGE THE OFFERING 9303120135 930312 BOMBAY CO TO OFFER STOCK FORT WORTH TEXAS BOMBAY CO SAID IT FILED A REGISTRATION STATEMENT TO OFFER ONE MILLION COMMON SHARES THE SPECIALTY RETAILER SAID ALL OF THE SHARES WILL BE SOLD BY THE COMPANY MONTGOMERY SECURITIES WILLIAM BLAIR & CO AND ROBERTSON STEPHENS & CO ARE UNDERWRITING THE OFFERING 9303120134 930312 TOWERS FINANCIAL DEFAULT IMPERILS 300 INSTITUTIONS DEBT COLLECTOR'S MOVE HAS MEDICAL UNITS SEEKING ALTERNATIVE FINANCING BY ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK TOWERS FINANCIAL CORP'S DEFAULT ON 200 MILLION IN HEALTHCAREBACKED BONDS EARLY LAST MONTH HAS PUT NEARLY 300 SMALL AND LARGE HOSPITALS AND NURSING HOMES IN A PRECARIOUS FINANCIAL POSITION THESE MEDICINERELATED FACILITIES MANY OF WHICH ARE TEETERING ON THE EDGE OF FINANCIAL HEALTH SECURED FINANCING THROUGH NEW YORKBASED TOWERS AT RATES APPROACHING 24 BUT EARLY LAST MONTH TOWERS STOPPED MAKING DAILY DEPOSITS INTO AN ACCOUNT MAINTAINED BY SHAWMUT BANK CONNECTICUT ACCORDING TO CHARGES FILED FEB 9 BY SHAWMUT IN FEDERAL COURT THE ACCOUNT WAS USED TO PAY BONDHOLDERS AND TO PROVIDE LOANS TO THE HEALTHCARE PROVIDERS IF OTHER MEANS OF FINANCING CAN'T BE FOUND A 174PERSON PRIVATE NURSING HOME IN EVERETT WASH EXPECTS TO FILE FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE ACCORDING TO ALAN LARSON CONTROLLER OF VIRGINIA MANOR CONVALESCENT HOME OTHER PROVIDERS INCLUDING AT LEAST TWO MAJOR HOSPITALS ARE KNOWN TO BE SCRAMBLING FOR ALTERNATIVE FINANCING AND HAVE SOUGHT FUNDS FROM AT LEAST ONE OTHER HEALTHCARE FINANCE COMPANY THE TOTAL AMOUNT IN ROLLING ACCOUNT RECEIVABLES BALANCES APPROACHES 500 MILLION STEVEN HOFFENBERG TOWERS CHAIRMAN SAID LAST WEEK THAT HIS HANDS ARE TIED BECAUSE OF SHAWMUT'S LEGAL ACTIONS THE BANK SECURED A TEMPORARY RESTRAINING ORDER AGAINST TOWERS THROUGH THE END OF MARCH AND IS PURSUING A CONTEMPT ORDER AGAINST THE DEBT COLLECTION COMPANY FOR ITS FAILURE TO PROVIDE FINANCIAL RECORDS AND TO RESUME FULL DAILY PAYMENTS SEPARATELY THE SECURITIES AND EXCHANGE COMMISSION HAS FILED A CIVIL SUIT CHARGING TOWERS WITH FRAUD IN THE SALE OF 415 MILLION IN UNREGISTERED NOTES AND BONDS INCLUDING 200 MILLION IN PRIVATELY PLACED HEALTHCARE BONDS THIS COMES AT A TIME WHEN MR HOFFENBERG IS NEGOTIATING TO BUY THE NEW YORK POST THE SEC SUIT NAMES THE POST AND RELATED ENTITIES IN ITS CASE SO IT CAN RETRIEVE ANY TOWERS DOLLARS THAT MR HOFFENBERG MAY HAVE USED TO SUPPORT THE DEBTSTRAPPED TABLOID THE POST'S CURRENT OWNER PETER KALIKOW HAS DECLARED PERSONAL BANKRUPTCY SHAWMUT COUNTERS THAT THE BANK CAN'T PAY PROVIDERS WITHOUT ACCESS TO TOWERS'S FINANCIAL RECORDS WE DON'T KNOW WHO TO PAY AND HOW MUCH TO PAY BECAUSE THE INFORMATION HAS NOT BEEN FORTHCOMING FROM TOWERS SAID BRYAN CALDER HEAD OF THE CORPORATE TRUST DEPARTMENT OF SHAWMUT NATIONAL CORP PARENT OF SHAWMUT BANK CONNECTICUT MR CALDER SAID THE BANK HAS FIELDED PHONE CALLS FOR MORE THAN A WEEK FROM HEALTHCARE PROVIDERS SEEKING FUNDS THE FINANCING ARRANGEMENT BETWEEN TOWERS AND THE HEALTHCARE PROVIDERS RESEMBLES FACTORING IN THE RETAIL INDUSTRY WHERE A BUSINESS SELLS ITS ACCOUNTS RECEIVABLES WITHOUT RECOURSE TO A FACTORING COMPANY TOWERS BOUGHT HEALTHCARE RECEIVABLES FROM 280 TO 300 PROVIDERS RANGING FROM SMALL INSTITUTIONS SUCH AS VIRGINIA MANOR TO LARGER ONES SUCH AS NORTH DETROIT GENERAL HOSPITAL ACCORDING TO ONE SOURCE SOME OF THESE ROLLING ACCOUNTS TOTAL AS MUCH AS 5 MILLION SHAWMUT SAID MR CALDER DESCRIBES THE FINANCING ARRANGEMENT THIS WAY TOWERS GIVES A PROVIDER 50 CENTS ON THE DOLLAR IN LIEU OF FULL PAYMENT ON FUTURE ACCOUNTS RECEIVABLES MONTHLY PAYMENTS TO A PROVIDER FROM AN INSURER OFTEN MEDICARE OR MEDICAID ARE SUBSEQUENTLY TURNED OVER TO TOWERS TOWERS IMMEDIATELY TURNS THE FUNDS OVER TO SHAWMUT WHICH THEN REIMBURSES THE PROVIDER AT TOWERS'S REQUEST TOWERS TAKES A PERCENTAGE OF INTEREST FROM THE PROVIDER PAYMENT TO COVER EXPENSES FOR VIRGINIA MANOR THAT INTEREST PAYMENT COMES TO 24 ON AN ANNUAL BASIS MAKING THIS COSTLY FORM OF FINANCING A CHOICE OF LAST RESORT SINCE THE CONVALESCENT HOME TURNED OVER TWO MEDICAID REIMBURSEMENTS TOTALING 385000 TO TOWERS FEB 23 IT HASN'T SEEN A PENNY IN RETURN SAID MR LARSON THAT IS DESPITE ALMOST DAILY PHONE CALLS AND AT LEAST FIVE LETTERS TO TOWERS OFFICIALS INCLUDING MR HOFFENBERG THE HOME STILL HAS NO ANSWER TO WHEN OR IF IT WILL RECEIVE ANY MONEY HE SAID THE 385000 REPRESENTS 90 OF THE FACILITY'S EXPENSES FOR THE MONTH WITHOUT THE MONEY VIRGINIA MANOR CAN'T MEET ITS PAYROLL OR PAY ITS FOOD BILLS TAXES OR MEDICAL EXPENSES SAID MR LARSON THE HOME HAS CONTACTED MEDIMAX INC NEW YORK TO ARRANGE SUBSTITUTE FINANCING BUT THAT WILL REQUIRE PAYING OFF TOWERS A TOTAL COST OF ABOUT 644000 HE SAID IT'S DEVASTATING MR LARSON ADDED IF WE DON'T GET FUNDING FROM MEDIMAX BY WEDNESDAY OR THURSDAY IT'S ALL OVER FOR US WE JUST DON'T HAVE THE CASH 9303120133 930312 LOCKHEED BEGINS FINANCING PLAN TO PAY FOR DEAL BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES LOCKHEED CORP MOVING SWIFTLY TO SET LONGTERM FINANCING FOR ITS 15 BILLION PURCHASE OF GENERAL DYNAMICS CORP'S FIGHTER AIRCRAFT OPERATIONS MARKETED 900 MILLION OF NOTES AND DEBENTURES YESTERDAY AND DISCLOSED PLANS TO RAISE THE REMAINING 600 MILLION STARTING NEXT WEEK THE AEROSPACE CONCERN SIGNALED THAT IT PLANS TO PAY DOWN THE DEBT SWIFTLY OPTING FOR A LARGE PORTION OF NEARTERM MATURITIES VINCENT N MARAFINO VICE CHAIRMAN AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER SAID IN AN INTERVIEW THAT LOCKHEED WHOSE DEBT HAS JUMPED TO 48 OF TOTAL CAPITAL FROM 29 WITH THE FIGHTER BUSINESS PURCHASE PLANS TO CUT THE RATIO TO 33 WITHIN THREE YEARS IN PROSPECTUS MATERIAL ISSUED FOR YESTERDAY'S DEBT OFFERING LOCKHEED SAID THAT AT DEC 31 THERE WERE ORDERS FOR 827 F16 FIGHTER AIRCRAFT THAT ARE PRODUCED BY THE FORT WORTH DIVISION THE PLANES ARE SCHEDULED FOR DELIVERY THROUGH 1999 THOSE ORDERS ARE THE SOURCE OF PROSPECTIVE CASH FLOW THAT'S DEPENDED ON TO PAY DOWN DEBT THE FORMER GENERAL DYNAMICS DIVISION HAD FISCAL 1992 PRETAX PROFIT OF 286 MILLION ON 31 BILLION IN SALES ACCORDING TO THE PROSPECTUS IN THE INTERVIEW MR MARAFINO DECLINED TO DISCUSS SPECIFICS OF LOCKHEED'S EARNINGS OUTLOOK BUT SAID THAT FINANCIAL ANALYSTS HAVE GENERALLY BEEN PROJECTING ABOUT 630 A SHARE FOR THIS YEAR OUR REACTION TO THAT IS THAT WE ARE COMFORTABLE WITH IT THE COMPANY LAST YEAR HAD A NET LOSS OF 283 MILLION OR 458 A SHARE AFTER ACCOUNTING CHANGES HOWEVER PROFIT BEFORE THE ADJUSTMENTS TOTALED 348 MILLION OR 565 A SHARE SALES TOTALED 1010 BILLION LOCKHEED'S OFFERING YESTERDAY CONSISTED OF 300 MILLION OF 5875 NOTES DUE MARCH 15 1998 PRICED AT 99509 OF THEIR PRINCIPAL AMOUNT TO YIELD 599 TO MATURITY 300 MILLION OF 675 NOTES DUE MARCH 15 2003 PRICED AT 99141 OF THEIR PRINCIPAL AMOUNT TO YIELD 687 AND 300 MILLION OF 7 7/8 CALLABLE DEBENTURES DUE MARCH 15 2023 AT 99600 OF THEIR PRINCIPAL AMOUNT TO YIELD 791 MR MARAFINO SAID THE COMPANY WILL FILE WITH THE SECURITIES AND EXCHANGE COMMISSION NEXT THURSDAY OR FRIDAY FOR AN ADDITIONAL 600 MILLION IN MEDIUMTERM NOTES MR MARAFINO SAID THE NOTES WILL BE MARKETED OVER THE NEXT 30 DAYS THE PROCEEDS OF ALL THIS FINANCING WILL BE USED TO PAY DOWN 15 BILLION IN CORPORATE PAPER THAT WAS SOLD AS BRIDGE FINANCING FOR THE ORIGINAL PURCHASE THE SECURITIES YESTERDAY WERE SOLD THROUGH AN UNDERWRITING GROUP COMANAGED BY FIRST BOSTON CORP GOLDMAN SACHS & CO AND MERRILL LYNCH & CO THE SAME GROUP AND JP MORGAN & CO WILL BE USED TO MARKET THE FORTHCOMING NOTES OFFERINGS 9303120132 930312 WHO'S NEWS MILTOPE GROUP INC MILTOPE GROUP INC MELVILLE NY WILLIAM L DICKINSON 67 YEARS OLD WAS APPOINTED TO THE BOARD OF THIS MAKER OF SPECIALIZED COMPUTERS AND PERIPHERALS INCREASING THE NUMBER OF DIRECTORS TO EIGHT MR DICKINSON IS A RETIRED REPUBLICAN CONGRESSMAN FROM ALABAMA WHO FOR 11 YEARS SERVED ON THE HOUSE ARMED SERVICES COMMITTEE HE RETIRED LAST YEAR 9303120131 930312 DAIMLERBENZ SETS INVESTMENT PROGRAM FOR EASTERN GERMANY SPECIAL TO THE WALL STREET JOURNAL DRESDEN GERMANY DAIMLERBENZ AG OUTLINED AN INVESTMENT PROGRAM FOR EASTERN GERMANY AND SAID 1992 NET INCOME WILL FALL TO ABOUT 15 BILLION MARKS 900 MILLION A YEAR EARLIER THE GERMAN INDUSTRIAL CONGLOMERATE HAD NET INCOME OF 19 BILLION MARKS DAIMLER SAID IT WILL SEE A FURTHER DECLINE IN 1993 PROFIT ALTHOUGH THE COMPANY DIDN'T GIVE A SPECIFIC FORECAST DAIMLER WILL ANNOUNCE ITS 1992 RESULTS APRIL 6 AT A NEWS CONFERENCE DAIMLER SAID IT WILL INVEST TWO BILLION MARKS IN EASTERN GERMANY OVER THE NEXT FIVE YEARS THE BULK OF THE INVESTMENT WILL POUR INTO DAIMLERBENZ'S HEAVY TRUCK FACTORY AT LUDWIGSFELDE NEAR BERLIN A RAILWAY ENGINE FACTORY IN HENNIGSDORF AND ITS POWER SYSTEMS DISTRIBUTION PLANT IN DRESDEN A SPOKESMAN SAID SOME INVESTMENTS WILL GO TO OTHER DAIMLERBENZ SUBSIDIARIES IN EASTERN GERMANY AS WELL AS A RESULT OF THE INVESTMENTS DAIMLERBENZ'S WORK FORCE IN EASTERN GERMANY EXCLUDING BERLIN WILL RISE TO ABOUT 15000 PEOPLE IN 1995 FROM THE CURRENT LEVEL OF 10300 HOWEVER THE COMPANY SAID IT WILL PLACE WORKERS AT ITS AIRCRAFT PLANT IN DRESDEN AND ITS TRUCK FACTORY AT LUDWIGSFELDE ON SHORT SHIFTS THE AIRCRAFT FACTORY WILL BE PLACED ON 24 DAYS OF SHORT SHIFTS IN APRIL WHILE THE TRUCK FACTORY WILL HAVE EIGHT DAYS OF SHORT SHIFTS THE AIRCRAFT PLANT WHICH HELPS BUILD THE FUSELAGES FOR THE DUTCH FOKKER 100 AIRPLANE EMPLOYS ABOUT 400 PEOPLE THE TRUCK FACTORY EMPLOYS 2000 WORKERS AND PRODUCES ABOUT 20000 TRUCKS A YEAR 9303120130 930312 WHO'S NEWS FARRAGUT MORTGAGE CO FARRAGUT MORTGAGE CO MANSFIELD MASS THE COMPANY SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER EDWARD D LAGARDE 51 YEARS OLD RESIGNED EFFECTIVE MARCH 31 BECAUSE OF ILL HEALTH THOMAS GERE SENIOR VICE PRESIDENT MARKETING WILL BE ACTING CHIEF EXECUTIVE THE MORTGAGE ORIGINATION AND SALES COMPANY SAID ITS BOARD EXPECTS SHORTLY TO NAME A SUCCESSOR TO MR LAGARDE WHO WILL REMAIN A DIRECTOR AND CONSULTANT 9303120129 930312 PROFIT TO BE POSTED BY NATIONWIDE CELLULAR FOR 1992 BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL VALLEY STREAM NY NATIONWIDE CELLULAR SERVICE INC EXPECTS TO POST A SUBSTANTIAL PROFIT FOR THE FOURTH QUARTER AND FULLYEAR 1992 PRINCIPALLY BECAUSE OF A GAIN FROM THE SALE OF AN OPERATING LICENSE AND SYSTEM IN ADDITION THE COMPANY'S MAIN BUSINESS OF RESELLING CELLULAR SERVICE IS BOOMING AND SHOULD EXCEED 200 MILLION IN SALES THIS YEAR SAID STEPHEN KATZ CHAIRMAN AND CHIEF EXECUTIVE HE ALSO SAID AN ANALYST'S ESTIMATE THAT NATIONWIDE'S 1993 PRETAX PROFIT WILL BE MORE THAN 5 MILLION OR 62 CENTS A SHARE IS FAIRLY ACCURATE NATIONWIDE THE LARGEST INDEPENDENT RESELLER OF CELLULAR TELEPHONE SERVICE IN THE US EXPECTS TO POST A ONETIME PRETAX GAIN OF ABOUT 77 MILLION FOR THE FOURTH QUARTER FROM THE SALE OF THE CELLULAR TELEPHONE OPERATING LICENSE AND SYSTEM IN NORTHWESTERN PENNSYLVANIA HE SAID MR KATZ DECLINED TO FORECAST SPECIFIC RESULTS FOR THE QUARTER EXCEPT TO SAY REVENUE WOULD BE MORE THAN 44 MILLION FOR THE YEARAGO QUARTER NATIONWIDE POSTED NET INCOME OF 310000 OR TWO CENTS A SHARE ON REVENUE OF 302 MILLION MR KATZ ALSO COULDN'T SAY IF THE COMPANY WAS PROFITABLE FROM OPERATIONS IN THE QUARTER BUT HE SAID 1992 WAS NATIONWIDE'S FIRST FULL YEAR IN WHICH RESELLING OPERATIONS WERE PROFITABLE FOR THE YEAR MR KATZ EXPECTS PRETAX PROFIT TO EXCEED 8 MILLION OR 1 A SHARE ON SALES OF ABOUT 142 MILLION FOR 1991 NATIONWIDE REPORTED NET OF 12 MILLION OR SIX CENTS A SHARE ON REVENUE OF 1149 MILLION THOSE RESULTS INCLUDED A 1 MILLION GAIN FROM THE SALE OF SUBSCRIBERS AND 2 MILLION FROM THE INITIAL PUBLIC OFFERING BY ITS CELLULAR TECHNICAL SERVICES CO UNIT NATIONWIDE EXPECTS TO REPORT RESULTS IN THE NEXT TWO WEEKS LAST YEAR THE COMPANY MOVED TO REDUCE OR SELL INTERESTS IN THREE OTHER ENTITIES WHILE FOCUSING ON ITS RESELLING BUSINESS RESELLERS BUY UP VAST QUANTITIES OF AIR TIME FROM PRIMARY CELLULAR CARRIERS AND THEN SELL IT TO END USERS AT A HIGHER PRICE NATIONWIDE PURCHASED THREE COMPETITORS IN THE RESELLING BUSINESS IN TRANSACTIONS VALUED AT MORE THAN 40 MILLION AND INCREASED ITS SUBSCRIBER BASE THROUGH THE ACQUISITIONS AND INTERNAL GROWTH TO ITS CURRENT 155000 SUBSCRIBERS FROM 86000 AT THE END OF 1991 THE COMPANY REDUCED ITS STAKE IN CELLULAR TECHNICAL SERVICES A SOFTWARE PRODUCER TO ABOUT 38 FROM 53 AS WARRANTS WERE CONVERTED IT ALSO SOLD ITS LICENSE AND OPERATING SYSTEM IN PENNSYLVANIA AND AGREED TO SELL 75 OF ITS RENTAL PHONE BUSINESS ON WHICH IT EXPECTS TO RECOGNIZE A PRETAX PROFIT OF 15 MILLION TO 2 MILLION FOR THE SECOND QUARTER EVERY ONE OF THE ENTITIES LOST MONEY BUT WERE FAR FROM WORTHLESS MR KATZ SAID THIS YEAR NATIONWIDE AIMS TO CONTINUE TO TRY TO DIFFERENTIATE ITSELF THROUGH HIGHQUALITY SERVICE TO GROW INTERNALLY AT MORE THAN 20 A YEAR IN SALES AND SUBSCRIBERS AND TO CONTINUE LOOKING FOR ACQUISITIONS 9303120128 930312 FIAT IS MAKING BIG INVESTMENT IN MELFI FACTORY ITALIAN PLANT WILL BECOME CAR MAKER'S BIGGEST MOST INNOVATIVE FACILITY BY MICHAEL C BERGMEIJER SPECIAL TO THE WALL STREET JOURNAL MELFI ITALY UNDAUNTED BY AN UNPRECEDENTED SLUMP IN THE EUROPEAN CAR MARKET FIAT SPA IS MAKING RECORD INVESTMENTS IN WHAT WILL BE ITS BIGGEST AND MOST INNOVATIVE FACTORY THE ITALIAN CAR MANUFACTURER'S FLAGSHIP PLANT NEAR MELFI AMID THE HILLS OF THE SOUTHERN BASILICATA REGION IS EXPECTED TO START PRODUCING ITS NEW SLIGHTLY ENLARGED VERSION OF THE SUBCOMPACT UNO MODEL IN JANUARY THE GIANT FACTORY WILL TURN OUT 450000 CARS A YEAR AT FULL CAPACITY THE PLANT BASED ON THE JAPANESE CONCEPT OF AN INTEGRATED FACTORY REQUIRED A CAPITAL INVESTMENT OF 48 TRILLION LIRE 299 BILLION OF THIS AMOUNT THE GOVERNMENT PAID 13 TRILLION LIRE IN THE FORM OF DIRECT AID AND INTEREST PAYMENT FACILITIES TO PROMOTE PRIVATE INDUSTRIAL DEVELOPMENT IN THE SOUTH IN THE MOSTLY RURAL BASILICATA REGION THE UNEMPLOYMENT RATE TOPS 20 THE HEFTY INVESTMENT IN THE MELFI PLANT IS PART OF THE FIAT GROUP'S 48 TRILLIONLIRA CAPITAL SPENDING PLAN FOR THE 19911996 PERIOD ITS INVESTMENT PLANS ARE SO BIG THAT IT HAS RAISED CONCERNS AMONG ANALYSTS THAT FIAT MAY BE OVEREXTENDING ITSELF MAURIZIO MAGNABOSCO THE HEAD OF ORGANIZATION AND PERSONNEL SAID THE CONSTRUCTION OF THE NEW PLANT ISN'T IN CONTRAST WITH THE CURRENT CRISIS IN THE EUROPEAN CAR MARKET IT'S A PROJECT THAT MUST BE SEEN IN THE LONGER TERM WE ARE LOOKING AT THE END OF THE CENTURY HE TOLD A NEWS CONFERENCE HERE THE ULTRAMODERN PLANT WHICH APPLIES NEW STANDARDS OF MANAGEMENT ON THE FACTORY FLOOR TO ENFORCE MORE DIRECT QUALITY CONTROL WILL ENABLE FIAT TO MEET THE CHALLENGES OF THE FUTURE MR MAGNABOSCO SAID HERE WE EXPERIENCE THE BEST OF WHAT WE HAVE WITHOUT MAKING AN ESCAPE INTO THE FUTURE HE SAID ALTHOUGH LESS AUTOMATED THAN SOME OTHER RECENT CAR FACTORIES THE MELFI PLANT STILL USES NEARLY 300 ROBOTS IT WILL ALSO BENEFIT FROM THE FACT THAT IT HAS GROUPED SOME 18 SUPPLIERS OF PARTS INCLUDING FRENCH TIRE MAKER MICHELIN SA AND ITS OWN PARTS MANUFACTURER MAGNETI MARELLI SPA JUST OUTSIDE ITS OWN FACTORY GATE THIS JUSTINTIME SUPPLY OF PARTS WILL REDUCE WAREHOUSING AND OPERATING COSTS MR MAGNABOSCO SAID THIS WILL MAKE MELFI SURELY MORE COMPETITIVE COMPARED WITH OUR CURRENT PRODUCTION HE SAID MELFI'S NEW MODEL WILL BE UNVEILED AT THE FRANKFURT INTERNATIONAL AUTO SHOW IN SEPTEMBER BUT NEWS LEAKS SUGGEST THE CAR IS SLIGHTLY LARGER AND MORE LUXURIOUS THAN THE POPULAR BUT NOW OUTDATED UNO MODEL IT'S AIMED AT THE SAME MARKET SEGMENT AS THE NEW CORSA MODEL MADE BY GENERAL MOTORS CORP'S OPEL UNIT AND THE IBIZI MODEL MADE BY VOLKSWAGEN AG'S SPANISH SUBSIDIARY SEAT FIAT HOPES THE NEW MODEL WILL SOON BECOME ITS BESTSELLING CAR TWO OTHER FIAT FACTORIES ARE SCHEDULED TO PRODUCE AN ADDITIONAL 150000 UNITS FOR A TOTAL OUTPUT OF 600000 A YEAR THIS WOULD ACCOUNT FOR ABOUT 27 OF THE FIAT GROUP'S DOMESTIC PRODUCTION CAPACITY TARGET OF 2250000 CARS BY THE YEAR 2000 UP FROM ITS CURRENT PRODUCTION CAPACITY OF AROUND 19 MILLION MR MAGNABOSCO SAID OUTSIDE ITALY FIAT PLANS TO PRODUCE 700000 CARS A YEAR BY THE END OF THE CENTURY FOR A GLOBAL CAPACITY OF NEARLY THREE MILLION CARS A YEAR ANALYSTS WARN THAT FIAT MAY BE OVERLY OPTIMISTIC ABOUT THE POTENTIAL OF THE EUROPEAN CAR MARKET AND ITS OWN SHARE IN IT EUROPEAN CAR SALES WERE FLAT IN 1992 AND HAVE BEEN IN A NEAR FREEFALL IN THE FIRST TWO MONTHS OF 1993 WITH NO SIGNS OF A SPEEDY RECOVERY FIAT MIGHT HAVE A HARD TIME USING ITS ADDED CAPACITY THERE'S A GREAT RISK THAT IT WILL HAVE TO TAKE DOWN OTHER CAPACITY SAID PHILIP AYTON EUROPEAN MOTOR ANALYST AT BARCLAYS DE ZOETE WEDD IN LONDON TO GET THE GOVERNMENT SUBSIDIES FOR THE MELFI PLANT APPROVED BY THE EUROPEAN COMMUNITY FIAT HAD TO CLOSE DOWN A FEW FACTORIES IN THE NORTH MR MAGNABOSCO SAID THERE ARE NO PLANS FOR FURTHER PLANT CLOSURES BUT ANALYSTS PREDICT MARKET REALITY MAY DICTATE OTHERWISE ASSUMING THAT THE BULK OF FIAT'S DOMESTIC PRODUCTION PLUS TWOTHIRDS OF THE 240000 CARS PRODUCED IN POLAND ARE DESTINED FOR THE WEST EUROPEAN MARKET FIAT'S SUPPLY TO THE EUROPEAN MARKET WILL INCREASE TO NEARLY 24 MILLION CARS BY THE YEAR 2000 THIS WOULD REPRESENT AN INCREASE OF 48 FROM THE 16 MILLION CARS FIAT SOLD IN EUROPE IN 1992 ANALYSTS GENERALLY EXPECT THE EUROPEAN CAR MARKET TO EXPAND 11 TO 15 MILLION CARS BY THE END OF THE CENTURY FROM 135 MILLION CARS LAST YEAR FIAT WOULD THUS HAVE TO INCREASE ITS MARKET SHARE TO 16 FROM 12 OR ABSORB NEARLY HALF OF EUROPE'S MARKET GROWTH ALTHOUGH EMERGING MARKETS IN NORTH AFRICA COULD SEE A SHARP INCREASE IN FIAT SALES THESE ARE UNLIKELY TO ABSORB THE BULK OF THE ADDED CAPACITY IN VIEW OF THE FACT THAT JAPAN WILL CONTINUE TO AGGRESSIVELY INCREASE ITS MARKET SHARE PARTICULARLY IN FIAT'S OWN HOME MARKET AND THAT VOLKSWAGEN IS ALSO ADDING CAPACITY FIAT MIGHT BE FORCED TO SCALE BACK ITS INVESTMENT PLANS OR CLOSE OTHER PLANTS BEFORE THE END OF THE CENTURY CHRISTOPHER WILL AUTOMOTIVE ANALYST AT LEHMAN BROTHERS INTERNATIONAL IN LONDON AGREED THE OFFICIAL CAPACITY TARGETS MAY BE OVERSTATED BUT SAID HE IS CONFIDENT FIAT'S MANAGEMENT HAS A REALISTIC VIEW OF THE FUTURE AND THAT IT HASN'T ANNOUNCED ANY PLANT CLOSURES YET BECAUSE OF LIKELY OPPOSITION BY THE LABOR UNIONS HE SAYS THE MELFI PLANT IS AIMED AT REDUCING OPERATING COSTS REDUCING COSTS IS FIRST ADDING CAPACITY IS SECOND IN FIAT'S PRIORITIES HE SAID 9303120127 930312 BUSINESS BRIEFS AMERICAN HEALTH PROPERTIES INC AGREED TO SELL ITS AURORA COLO HOSPITAL TO P/SL HEALTHCARE SYSTEM FOR 42 MILLION AUTOMOTIVE INDUSTRIES HOLDING INC DEFINITIVELY AGREED TO ACQUIRE ASAA INTERNATIONAL INC FOR 42 MILLION VIEWLOGIC SYSTEMS INC AGREED TO ACQUIRE CLOSELY HELD QUAD DESIGN TECHNOLOGY INC FOR 872700 SHARES OF COMMON STOCK OR AN INDICATED VALUE OF ABOUT 17 MILLION NEOGEN CORP COMPLETED THE ACQUISITION OF PLANT DIAGNOSTICS PRODUCTS FROM AGRIDIAGNOSTICS ASSOCIATES A UNIT OF DNA PLANT TECHNOLOGY TERMS WEREN'T DISCLOSED RECOGNITION EQUIPMENT INC CHANGED ITS NAME TO RECOGNITION INTERNATIONAL INC LINCOLN FOODS INC A UNIT OF NOEL GROUP INC AGREED TO PURCHASE THE ASSETS OF CAROUSEL NUT PRODUCTS TERMS WEREN'T DISCLOSED HAYES WHEELS INTERNATIONAL SIGNED A CONTRACT VALUED AT 12 MILLION ANNUALLY TO SUPPLY ALUMINUM WHEELS TO GERMANY'S BAYERISCHE MOTOREN WERKE AG FROM A JOINT VENTURE COMPANY BEING FORMED WITH HAYES WHEELS AND NOVA HUT AS OSTRAVA IN THE CZECH REPUBLIC 9303120126 930312 INTERNATIONAL FOREIGN INSIGHT YELTSIN PUMMELS POLITICAL OPPONENTS OR MAYBE IT WAS THE OTHER WAY AROUND BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW MOMENTS BEFORE ADDRESSING A HOSTILE CONGRESS OF PEOPLE'S DEPUTIES YESTERDAY RUSSIAN PRESIDENT BORIS YELTSIN POINTEDLY SHOOK HANDS WITH THE COUNTRY'S MINISTERS OF DEFENSE SECURITY AND INTERIOR AND IN CASE ANYONE MISSED THE GESTURE HIS PRESS SECRETARY VIACHESLAV KOSTIKOV CALLED IN JOURNALISTS TO TELL THEM ABOUT IT WERE THE HANDSHAKES AN ATTEMPT TO SHOW SOLIDARITY OR WAS MR YELTSIN WHO IS LOCKED IN A POWER STRUGGLE THREATENING HIS PARLIAMENTARY OPPONENTS WITH A SHOW OF MILITARY SUPPORT HAVING DROPPED THE HINT MR KOSTIKOV QUICKLY BACKED AWAY I WON'T COMMENT ON THIS HE TOLD THE PRESS ADDING TEASINGLY IT COULD HAVE BEEN AN EMOTIONAL OR EVEN CHANCE GESTURE THE INCIDENT SEEMS TO SUM UP THE BATTLE THAT PITS MR YELTSIN IN THE ROLE OF BELEAGUERED HEAD OF STATE AGAINST RUSLAN KHASBULATOV THE MERCURIAL SPEAKER OF THE PARLIAMENT IT'S A STRUGGLE CHARACTERIZED BY SHOWMANSHIP VAGUE GESTURES AND ABOVE ALL BLUSTER NOT THAT THE STAKES AREN'T HIGH BEHIND THE CLASH OF PERSONALITIES THE TWO SIDES ARE DEBATING ISSUES THAT AFFECT THE FUTURE OF RUSSIA'S POLITICAL SYSTEM THEY ARE WRESTLING WITH SUCH WEIGHTY CONSTITUTIONAL QUESTIONS AS THE LIMITS AND SEPARATION OF THE EXECUTIVE AND LEGISLATIVE BRANCHES OF POWER THE DEBATE CUTS INTO THE ECONOMIC SPHERE AS WELL AS OPPONENTS OF THE INCREASINGLY VULNERABLE PRESIDENT ATTACK HIS FREEMARKET REFORMS BUT ON THE SURFACE THE STRUGGLE HAS ALL THE CLASS OF A NURSERYSCHOOL SKIRMISH MR YELTSIN OPENED THE DAY'S SESSION WITH A SPEECH STATING THAT IF THE CONGRESS WON'T COMPROMISE IT FACES CONFRONTATION TO MANY THE STATEMENT WAS A VEILED THREAT TO IMPOSE EMERGENCY PRESIDENTIAL RULE INDEED THE RUSSIAN LEADER RECENTLY WARNED GERMAN CHANCELLOR HELMUT KOHL THAT HE MAY BE FORCED TO DISSOLVE THE RUSSIAN PARLIAMENT AND ASSUME EMERGENCY POWERS MR KHASBULATOV TOOK THE FLOOR IN AN ANGRY REJOINDER WE IN CONGRESS ARE TOILING AWAY WHILE MEMBERS OF THE PRESIDENT'S TEAM WALTZ UP TO THE MICROPHONE AND BLAME US FOR THIS AND THAT HE SAID MR KHASBULATOV THEN CALLED FOR THE OUSTER OF TWO OF MR YELTSIN'S LEADING REFORMIST AIDES FOREIGN MINISTER ANDREI KOZYREV AND THE VICE PREMIER IN CHARGE OF PRIVATIZING STATE INDUSTRY ANATOLI CHUBAIS ONE DELEGATE LATER CALLED FOR MR YELTSIN'S IMPEACHMENT PROMPTING THE PRESIDENT TO WALK OUT OF THE CONGRESS DESPITE THE DRAMA THE RUSSIAN PUBLIC BY AND LARGE HAS SWUNG BETWEEN APATHY AND HOSTILITY SUMMING UP THE MOOD NEZAVISIMAYA GAZETA THE MOSCOW DAILY CARRIED A HEADLINE YESTERDAY READING CONFRONTATION AT CONGRESS BORING BANAL AND NOT EVEN FUNNY ANYMORE THE CONGRESS PROBABLY WILL CONCLUDE THE EMERGENCY SESSION TODAY DEPUTIES REJECTED A POWERSHARING PROPOSAL FROM MR YELTSIN THAT WOULD HAVE PRESERVED A STRONG PRESIDENCY THEY ALSO VOTED AGAINST HOLDING A NATIONAL CONSTITUTIONAL REFERENDUM THAT MR YELTSIN HAD PUSHED FOR NEXT MONTH THE REFERENDUM PART OF AN EARLIER COMPROMISE BETWEEN MR YELTSIN AND PARLIAMENT WOULD HAVE PUT TO THE PUBLIC THE QUESTION OF WHO SHOULD RULE RUSSIA PARLIAMENT OR THE PRESIDENT BUT COMPROMISES WERE STILL BEING HAMMERED OUT BEHIND CLOSED DOORS AS THE DAY'S SESSION CAME TO AN END DELEGATES PROBABLY WILL BE ASKED TO VOTE TODAY ON A NEW POWERSHARING ARRANGEMENT THAT WOULD LEAVE THINGS AS THEY ARE UNRESOLVED A DRAFT COMPROMISE VERSION OF THE RESOLUTION WHICH CONGRESS APPROVED IN A NONBINDING VOTE WOULD TAKE SOME POWERS AWAY FROM MR YELTSIN BUT IT ALSO WOULD ALLOW HIM TO BRING THE CENTRAL BANK AND OTHER CRITICAL ECONOMIC ORGANIZATIONS INTO HIS CABINET THOUGH THEY WOULD REMAIN PARTLY UNDER PARLIAMENT'S CONTROL THE DRAFT ALSO DROPPED EARLIER LANGUAGE THAT WOULD HAVE TURNED THE PRESIDENCY INTO A FIGUREHEAD POSITION THE RESOLUTION GIVES YELTSIN EVERYTHING HE COULD WANT SAID ANDRANIK MIGRANIAN A POLITICAL COMMENTATOR ESPECIALLY WHEN YOU CONSIDER THAT A DAY EARLIER EVERYTHING WAS AGAINST HIM OTHERS WERE LESS SANGUINE ABOUT MR YELTSIN'S POSITION PEOPLE IN THE PRESIDENT'S OFFICE ARE VERY WORRIED SAID A YELTSIN AIDE I'M NOT ENCOURAGED 9303120125 930312 ROSE'S STORES FEBRUARY SALES HENDERSON NC ROSE'S STORES INC A CHAIN OF 213 DISCOUNT DEPARTMENT STORES SAID SAME STORE SALES FELL 63 FOR THE FIVE WEEKS ENDED MARCH 6 THE COMPANY SAID TOTAL SALES FOR THE PERIOD DECLINED TO 999 MILLION FROM 1038 MILLION A YEAR EARLIER SALES FELL BECAUSE THE COMPANY HAS DECREASED THE AMOUNT OF INVENTORIES IT KEEPS SO IT DIDN'T BENEFIT FROM FEBRUARY CLEARANCE SALES AS MUCH AS IT HAS IN THE PAST ROSE'S SAID SALES OF SPRING WEATHER AND LAWN EQUIPMENT WERE ALSO HURT BY UNSEASONABLY COOL WEATHER THE COMPANY SAID HOWEVER LOWER CLEARANCE MARKDOWNS ENABLED THE COMPANY TO POST A MORE PROFITABLE FEBRUARY THAN LAST YEAR IT SAID 9303120124 930312 ALL NIPPON AIR TO CHANGE SEATS TOKYO ALL NIPPON AIRWAYS CO SAID IT WILL REMOVE FIRSTCLASS SEATS AND REDUCE THE NUMBER OF BUSINESSCLASS SEATS IN ITS TOKYOSYDNEY FLIGHTS AND WILL INCREASE ECONOMYCLASS SEATS THE MOVE REFLECTS A SHARP FALL IN DEMAND FOR FIRSTCLASS SEATS AS JAPANESE COMPANIES CUT SPENDING ON BUSINESS TRIPS AMID THE ECONOMIC SLOWDOWN A SPOKESMAN SAID ON THE OTHER HAND SALES OF ECONOMYCLASS SEATS HAVE BEEN STRONG ON THE BACK OF A LARGE NUMBER OF JAPANESE TOURISTS VISITING AUSTRALIA HE SAID BEGINNING MARCH 27 ALL OF THE 24 FIRSTCLASS SEATS WILL BE REMOVED ON THOSE FLIGHTS EACH PLANE ON THE ROUTE WILL HAVE 16 OR 24 BUSINESSCLASS SEATS DEPENDING ON THE TYPE OF PLANE DOWN FROM 67 OR 80 NOW THE NUMBER OF ECONOMYCLASS SEATS WILL RISE TO 282 OR 286 FROM 222 OR 235 ANA ISN'T PLANNING A SIMILAR MOVE IN OTHER LONGDISTANCE FLIGHTS TO NORTH AMERICA AND EUROPE HE SAID 9303120123 930312 DESPITE ARREST OF ALLIEDSIGNAL WORKER COMPANIES ARE WARY OF STRICTER CHECKS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL THE ARREST OF AN ALLIEDSIGNAL INC EMPLOYEE IN CONNECTION WITH THE WORLD TRADE CENTER BOMBING IS UNLIKELY TO LEAD US COMPANIES TO ADOPT STRICTER SECURITY CONTROLS AND CONDUCT EXTENSIVE BACKGROUND CHECKS OF EXISTING EMPLOYEES THAT'S THE OPINION OF SEVERAL LEGAL EXPERTS AND SECURITY OFFICIALS AT MAJOR COMPANIES THEY SAID THAT TO REVISIT THE BACKGROUNDS OF ALL EMPLOYEES WOULD BE EXPENSIVE AND UNREASONABLE AND TO TARGET ONLY SOME EMPLOYEES BASED ON THEIR RELIGION OR NATIONAL ORIGIN WOULD OPEN THEM UP TO CHARGES OF DISCRIMINATION BASICALLY WE WILL CONTINUE TO FOLLOW OUR CURRENT SECURITY PROCEDURES SAID THE HEAD OF SECURITY AT A MAJOR FORTUNE 500 COMPANY WITH A LARGE NUMBER OF FOREIGNBORN EMPLOYEES WE CHECK THE BACKGROUND OF EVERYONE WHEN WE HIRE BUT HOW DO YOU CHECK SOMEONE'S INTEGRITY ALTHOUGH THE ALLEGED INVOLVEMENT OF AN EMPLOYEE PUTS ALLIEDSIGNAL UNDER PUBLIC SCRUTINY IT WOULD BE A STRETCH TO HOLD THE COMPANY RESPONSIBLE FOR THE ACT OF AN EMPLOYEE SAID ROBERT HABUSH AN ATTORNEY AND THE FORMER HEAD OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA THE ALLIEDSIGNAL EMPLOYEE NIDAL AYYAD WAS ARRESTED BY THE FEDERAL BUREAU OF INVESTIGATION ON WEDNESDAY AND CHARGED WITH AIDING THE BOMBING THE EXPLOSION KILLED AT LEAST FIVE PEOPLE AND INJURED MORE THAN 1000 THE 25YEAROLD MR AYYAD A KUWAITBORN US CITIZEN WORKED AS A PROCESS ENGINEER AT THE COMPANY WHICH IS BASED IN MORRIS TOWNSHIP NJ ALLIEDSIGNAL MAKES AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS ALLIEDSIGNAL WHICH IS SUSPENDING MR AYYAD WITHOUT PAY PENDING THE OUTCOME OF THE INVESTIGATION SAID THAT AS FAR AS IT KNOWS MR AYYAD'S EMPLOYMENT AT THE COMPANY DIDN'T PLAY ANY PART IN THE CONSTRUCTION OF THE BOMB FEDERAL INVESTIGATORS HAVE MADE REFERENCES TO MR AYYAD'S EXPERTISE AS A CHEMICAL ENGINEER AN ALLIEDSIGNAL SPOKESMAN SAID MR AYYAD IN HIS JOB DEALT WITH CHEMICALS USED IN PHARMACEUTICALS PAINTS AND METAL RECOVERY THE SPOKESMAN SAID NONE OF THE CHEMICALS ARE USED IN EXPLOSIVES THE SPOKESMAN SAID THE COMPANY HAS ALSO CHECKED STOREROOM RECORDS AND PURCHASE ORDERS AUTHORIZED BY MR AYYAD AND HASN'T FOUND ANY INSTANCE OF HIS SIGNING OUT ANY CHEMICALS BUT EVEN IF THE COMPANY'S PREMISES AND MATERIALS WERE INVOLVED DIRECTLY OR INDIRECTLY LEGAL EXPERTS SAID IT WOULD BE EXTREMELY DIFFICULT TO ATTACH ANY LIABILITY TO THE COMPANY COMPANIES CANNOT BE RESPONSIBLE FOR ILLEGAL ACTS OF AN EMPLOYEE SAID LAWRENCE SALIBRA SENIOR COUNSEL AT ALCAN ALUMINUM CORP A UNIT OF ALCAN ALUMINIUM LTD OF CANADA ALLIEDSIGNAL SAID IT HAD CHECKED THE BACKGROUND OF THE EMPLOYEE IT SAID THAT MR AYYAD HAD A GOOD ACADEMIC RECORD AT RUTGERS UNIVERSITY AND THAT ONE OF HIS EMPLOYMENT REFERENCES FROM THE UNIVERSITY SAID THAT HIS PREVIOUS EMPLOYER WOULD HAVE HIRED HIM IF THEY HAD AN OPENING ALLIEDSIGNAL DECLINED TO DISCLOSE THE IDENTITY OF MR AYYAD'S PREVIOUS EMPLOYER WHICH IT SAID WAS A REPUTABLE COMPANY BASED IN NEW JERSEY MR AYYAD WAS AN INTERN AT THAT COMPANY ALLIEDSIGNAL SAID BUT SOME SECURITY EXPERTS THINK THAT MANY COMPANIES MAY HAVE TO CONSIDER ADDITIONAL STEPS FOR INTELLIGENCE GATHERING AS THE US WORK FORCE BECOMES INCREASINGLY MULTINATIONAL AND MULTICULTURAL YOU WILL WANT TO LOOK INTO ANY RADICAL AFFILIATION ESPECIALLY IF THE PERSON HAS A SENSITIVE RESPONSIBILITY SAID MICHAEL HERSHMAN PRESIDENT OF FAIRFAX GROUP AN INTERNATIONAL INVESTIGATIVE AND SECURITY CONSULTING FIRM IN WASHINGTON GETTING HIRED IS NOT A RIGHT HE SAID YOU CAN CREATE WHATEVER BACKGROUND CHECKING TECHNIQUE YOU WANT AND IN MOST INSTANCES YOU WILL FALL PERFECTLY WITHIN THE LAW BY GETTING A WAIVER FROM THE EMPLOYEE BUT YOU HAVE TO BE CAREFUL THAT IT ISN'T BASED ON NATIONALITY OR RELIGION 9303120122 930312 HONG KONGUS TRADE HONG KONG HONG KONG'S JANUARY TRADE SURPLUS WITH THE US WIDENED 19 TO 953 BILLION HONG KONG DOLLARS US123 BILLION FROM HK798 BILLION A YEAR EARLIER BUT JANUARY'S TRADE SURPLUS WITH THE US WAS SLIGHTLY OFF FROM THE HK956 BILLION IN DECEMBER 9303120121 930312 WHO'S NEWS AIR & WATER SELECTS GLENN BRANCHBURG NJ AIR & WATER TECHNOLOGIES CORP NAMED ARTHUR L GLENN 59 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER OF THE ENVIRONMENTAL SERVICES COMPANY MR GLENN WHO WAS VICE PRESIDENT OF STRATEGIC SYSTEMS AT GENERAL ELECTRIC CORP SUCCEEDS ECKARDT C BECK AS PRESIDENT MR BECK REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER IS A NEWLY CREATED POSITION THE COMPANY ALSO NAMED DONALD A DEIESO 43 TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT DR DEIESO WILL RETAIN HIS CURRENT POSITION AS PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S RESEARCHCOTTRELL UNIT 9303120120 930312 BUSINESS BRIEF LANDS' END INC QUARTERLY PROFIT ROSE 4 TOPPED ANALYSTS' FORECASTS LANDS' END INC POSTED HIGHERTHANEXPECTED EARNINGS FOR ITS FISCAL FOURTH QUARTER ON MUCH STRONGER RESULTS FOR THE SECOND TWO MONTHS OF THE QUARTER THE DODGEVILLE WIS CATALOG CONCERN SAID NET INCOME FOR THE QUARTER ENDED JAN 29 REACHED 212 MILLION OR 118 A SHARE UP 4 FROM 204 MILLION OR 110 A SHARE A YEAR AGO SALES WERE 2795 MILLION COMPARED WITH 2715 MILLION FOR THE FULL YEAR LANDS' END REPORTED EARNINGS OF 335 MILLION OR 185 A SHARE UP 17 FROM 287 MILLION OR 153 A SHARE IN THE YEARAGO PERIOD ANNUAL SALES WERE 7336 MILLION COMPARED WITH 6834 MILLION A YEAR EARLIER THOUGH THE EARNINGS GAIN IN THE QUARTER WAS MEAGER IT SURPASSED ANALYSTS' EXPECTATIONS AND HELPED BOOST THE COMPANY'S STOCK YESTERDAY LANDS' END WAS TRADING AT 27375 UP 2 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9303120119 930312 APPLE PLANS SIEMENS LINK CUPERTINO CALIF APPLE COMPUTER INC SAID IT PLANNED TO JOIN SIEMENS AG'S SIEMENS PRIVATE COMMUNICATIONS SYSTEMS GROUP TO LINK APPLE'S HANDHELD PERSONAL DIGITAL ASSISTANT WITH SIEMENS' ROLM TELEPHONE TECHNOLOGY APPLE SAID THE FIRST PRODUCT FROM THE JOINT EFFORT TO BE CALLED NOTEPHONE WILL ALLOW USERS OF APPLE'S NEWTON HANDHELD COMPUTER ACCESS TO SIEMENS'S TELEPHONE AND FAX CAPABILITIES SIEMENS AND ROLM ARE PLANNING TO PROVIDE NOTEPHONE FOR STANDARD TELEPHONE LINES FOUND IN HOMES AND HOTELS AND FOR DIGITAL BUSINESS COMMUNICATIONS SYSTEMS APPLE SAID APPLE SAID NOTEPHONE WOULD BE DEMONSTRATED AT THE CEBIT TECHNOLOGY FAIR IN HANOVER GERMANY ON MARCH 25 9303120118 930312 SPROUSEREITZ SALES RISE PORTLAND ORE SPROUSEREITZ STORES INC SAID SALES IN THE FOUR WEEKS ENDED FEB 23 ROSE 33 FROM 99 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 37 OR 300000 FROM A YEAR EARLIER WHEN THE COMPANY HAD ONE ADDITIONAL STORE 9303120117 930312 CREDIT RATINGS MOODY'S LIFTS RATINGS OF ENERGY SUBSIDIARY OF HOUSTON INDUSTRIES NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE RATINGS OF HOUSTON LIGHTING & POWER CO AND CONFIRMED THE RATINGS OF ITS PARENT HOUSTON INDUSTRIES INC THE RATINGS SERVICE SAID THE MOVE REFLECTS COMPLETION OF THE SOUTH TEXAS NUCLEAR PROJECT AND A RESURGENCE IN THE ECONOMY OF HOUSTON THE UTILITY'S MAIN SERVICE BASE THE CONFIRMATION TAKES INTO ACCOUNT THE CONTINUING RISKS POSED BY HOUSTON INDUSTRIES' DIVERSIFIED OPERATIONS MOODY'S SAID ABOUT 44 BILLION OF SECURITIES IS AFFECTED RATINGS UPGRADED INCLUDE HOUSTON LIGHTING & POWER'S FIRSTMORTGAGE BONDS TO A2 FROM A3 SHELF REGISTRATION OF FIRSTMORTGAGE BONDS TO A2 FROM A3 UNSECURED POLLUTION CONTROL BONDS TO A3 FROM BAA1 COLLATERILIZED MTNS TO A2 FROM A3 PREFERRED STOCK TO A2 FROM A3 SHELF REGISTRATION OF PREFERRED STOCK TO PA2 FROM PA3 SHORTTERM DEBT RATING TO PRIME1 FROM PRIME2 MOODY'S SAID COMPLETION OF THE NUCLEAR PLANT NEGATES ANY NEED FOR NEW POWER PLANTS UNTIL THE NEXT CENTURY THE UTILITY EXPECTS TO FUND ANY CAPITAL EXPENDITURE FROM INTERNALLY GENERATED FUNDS WHICH SHOULD STRENGHTEN ITS FINANCIAL FLEXIBILITY MOODY'S SAID IN ADDITION RISKS FROM ADVERSE REGULATORY DECISIONS HAVE BEEN REDUCED BECAUSE RATE CASES ASSOCIATED WITH PLACING THE INVESTMENT OF THE NUCLEAR PLANT IN THE RATE BASE HAVE BEEN SUCCESSFULLY CONCLUDED 9303120116 930312 TECHNOLOGY BRIEF CONTROL DATA SYSTEMS INC LETTER OF INTENT IS SIGNED FOR ACQUISITION OF EVERNET CONTROL DATA SYSTEMS INC HOPING TO BEEF UP ITS COMPUTER INTEGRATION BUSINESS SAID IT HAS SIGNED A LETTER OF INTENT TO BUY EVERNET SYSTEMS INC A PRIVATELY HELD INSTALLER OF HIGHTECH NETWORKS THOUGH TERMS OF THE CASH AND STOCK DEAL WEREN'T DISCLOSED CONTROL DATA SAID THE PURCHASE IS EXPECTED TO BOOST ITS PROFITS BY 1 MILLION TO 2 MILLION BEGINNING IN THIS YEAR'S THIRD QUARTER FOR THE 1992 THIRD QUARTER CONTROL DATA REPORTED NET INCOME OF 206000 OR TWO CENTS A SHARE EVERNET LOS ANGELES GENERATED 40 MILLION IN REVENUE LAST YEAR THIS IS THE FIRST ACQUISITION FOR CONTROL DATA AN ARDEN HILLS MINN COMPUTER SERVICE AND INTEGRATION COMPANY SINCE THE CONCERN SPUN OFF FROM CONTROL DATA CORP LAST YEAR JAMES OUSLEY CONTROL DATA'S CHIEF EXECUTIVE SAID THE EVERNET BUY IS PART OF A STRATEGY TO SHIFT AS MUCH AS 80 OF THE COMPANY'S SALES WHICH TOTALED ABOUT 517 MILLION LAST YEAR INTO SOFTWARE AND COMPUTER INTEGRATION SERVICES THOSE BUSINESSES NOW ACCOUNT FOR 60 OF SALES A MAY CLOSING IS EXPECTED 9303120115 930312 INTERNATIONAL SUMITOMO METAL TO CUT STAFF TOKYO SUMITOMO METAL INDUSTRIES LTD A MAJOR JAPANESE STEEL MAKER SAID IT WILL CUT 3000 FROM ITS WORK FORCE BY 1995 AS PART OF A RESTRUCTURING PLAN SUMITOMO METAL SAID IT WOULD REDUCE ITS BLUECOLLAR WORK FORCE BY 2200 AND ITS WHITECOLLAR WORK FORCE BY 800 OVER THE COMING THREE YEARS BY ATTRITION AND BY TRANSFERRING EMPLOYEES TO OTHER COMPANIES IN ITS GROUP SUMITOMO'S ANNOUNCEMENT CAME ONE DAY AFTER NKK CORP ANOTHER HUGE STEEL MAKER SAID IT WOULD CUT ITS WORK FORCE BY 3200 WORKERS OVER THE NEXT THREE YEARS THE SLOWDOWN OF JAPAN'S ECONOMY MARKED BY FALLING DEMAND FOR CARS AND CONSUMER DURABLES HAS FORCED STEEL MAKERS TO CUT COSTS TO COPE WITH FALLING PROFITS AND STAGNANT SALES 9303120114 930312 ABREAST OF THE MARKET INDUSTRIAL AVERAGE DECLINES 2134 ON PROFITTAKING IN CYCLICAL ISSUES BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROFITTAKING IN CYCLICAL ISSUES AND RENEWED SELLING IN DRUG STOCKS ENDED THE STOCK MARKET'S THREEDAY JAUNT INTO RECORD TERRITORY BUT THE RALLY IN ECONOMICALLY SENSITIVE STOCKS WHICH TOOK ROOT AFTER A SURPRISINGLY STRONG READING ON EMPLOYMENT A WEEK AGO WAS DUE FOR A BREATHER TRADERS SAID THAT BUYING HAD HELPED POWER THE DOW JONES INDUSTRIAL AVERAGE AND OTHER MAJOR INDEXES TO RECORDS EACH SESSION THIS WEEK UNTIL YESTERDAY MIXED READINGS ON THE ECONOMY DISCLOSED YESTERDAY MORNING CONTRIBUTED TO NERVOUSNESS A COMMERCE DEPARTMENT REPORT ON FEBRUARY RETAIL SALES WAS STRONGER THAN FORECAST BUT LABOR DEPARTMENT DATA ON CLAIMS FOR UNEMPLOYMENT INSURANCE WERE DISAPPOINTING THE DOW JONES INDUSTRIALS FINISHED WITH A LOSS OF 2134 OR 061 TO 345700 BIG DECLINERS INCLUDED ALUMINUM CO OF AMERICA WHICH FELL 1 TO 70 7/8 INTERNATIONAL PAPER WHICH DROPPED 1 3/4 TO 64 5/8 AND GENERAL MOTORS WHICH SLUMPED 1 3/8 TO 38 3/4 AFTER THE CLOSE OF TRADING GM SAID J IGNACIO LOPEZ DE ARRIORTUA HEAD OF THE AUTO MAKER'S WORLDWIDE PURCHASING IS LEAVING HIS POST MR LOPEZ'S ENERGETIC APPROACH TO CUTTING GM'S PURCHASING AND ADMINISTRATIVE COSTS IS A KEY ELEMENT IN PRESIDENT JOHN F SMITH JR'S STRATEGY TO RETURN THE COMPANY'S NORTH AMERICAN OPERATIONS TO PROFITABILITY AT IBM JOHN YOUNG FORMER CHIEF EXECUTIVE OF HEWLETTPACKARD DENIED HE IS A CANDIDATE FOR THE TOP JOB AT IBM ON WEDNESDAY APPLE COMPUTER'S HIGHPROFILE CHAIRMAN JOHN SCULLEY TOOK HIMSELF OUT OF THE RUNNING TO SUCCEED JOHN AKERS AS IBM'S CHIEF EXECUTIVE DECLINING ISSUES ON THE BIG BOARD THOUGH OUTNUMBERED ADVANCERS BY JUST A BIT 954 TO 951 VOLUME WAS ACTIVE AT 250720000 SHARES BUT STILL DOWN SLIGHTLY FROM WEDNESDAY'S 255190000 THOMAS GALLAGHER MANAGING DIRECTOR IN CHARGE OF CAPITAL COMMITMENT AT OPPENHEIMER & CO SAID INVESTORS ARE STILL JITTERY ABOUT THE ECONOMY AND THE SHARES OF COMPANIES WHOSE FORTUNES ARE CLOSELY TIED TO ECONOMIC CONDITIONS THERE IS NOT A LOT OF SELLING IN CYCLICAL STOCKS BUT THE PASSION TO BUY THEM ISN'T THERE HE SAID MEANWHILE ACCORDING TO MANY MARKET OBSERVERS THE MOST IMPORTANT ECONOMIC NEWS OF THE WEEK WILL COME TODAY WHEN THE LABOR DEPARTMENT POSTS ITS FEBRUARY READING ON INFLATION AT THE WHOLESALE LEVEL ITS PRODUCER PRICE INDEX IS EXPECTED TO BE REPORTED UP ABOUT 03 SHARES OF PHARMACEUTICAL COMPANIES GAVE BACK SOME OF THE GAINS POSTED WEDNESDAY AFTER SEVERAL POSITIVE DEVELOPMENTS REGARDING THE CLINTON ADMINISTRATION'S EFFORTS TO REVAMP THE NATION'S HEALTHCARE SYSTEM LAST MONTH THE GROUP WAS PUMMELED BY NEWS ABOUT THE CHANGES MERCK & CO EASED 3/4 TO 39 1/4 BRISTOLMYERS SQUIBB DROPPED 1 TO 57 1/2 JOHNSON & JOHNSON EASED 5/8 TO 44 1/8 AND SYNTEX FELL 5/8 TO 19 1/2 GLAXO HOLDINGS TOPPED THE BIG BOARD MOST ACTIVE LIST FALLING 7/8 TO 19 THE LONDON COMPANY SAID ITS RESEARCH AND DEVELOPMENT DIRECTOR RICHARD SYKES WAS NAMED CHIEF EXECUTIVE SUCCEEDING ERNEST MARIO IT DIDN'T GIVE ANY SPECIFIC REASON FOR THE DEPARTURE WHILE DRUG STOCKS HAD HELPED POWER THE MARKET WEDNESDAY GERALD SIMMONS HEAD OF INSTITUTIONAL EQUITY TRADING AT INTERSTATE/JOHNSON LANE SAID THERE IS VERY LITTLE SUSTAINABLE LEADERSHIP AT THESE LEVELS WITH THE MARKET NEAR ITS HIGH AND UNCERTAINTIES IN WASHINGTON THE TRADER EXPECTS MORE ERRATIC ACTION IN STOCKS NATIONAL SEMICONDUCTOR ADDED 1 3/8 TO 12 7/8 THE SANTA CLARA CALIF COMPANY POSTED EARNINGS OF 19 CENTS A SHARE FOR THE THIRD QUARTER ENDED LAST MONTH UP FROM 11 CENTS A YEAR AGO SALES JUMPED TO 4915 MILLION FROM 4018 MILLION OTHER TECHNOLOGY STOCKS WERE MIXED COMPAQ COMPUTER ADDED 5/8 TO 50 5/8 AND TEXAS INSTRUMENTS CLIMBED 1 1/8 TO 60 5/8 BUT HEWLETTPACKARD EASED 1/4 TO 78 LANDS' END JUMPED 2 TO 27 3/8 AFTER THE DODGEVILLE WIS MAILORDER APPAREL RETAILER POSTED STRONGERTHANEXPECTED FOURTHQUARTER EARNINGS ITS EARNINGS JUMPED TO 118 A SHARE UP FROM 110 AND ABOVE THE 114 MEAN ESTIMATE OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM LONE STAR INDUSTRIES ADDED 1/8 TO 2 1/4 THE MAKER OF CONSTRUCTION MATERIALS SAID ITS BOARD APPROVED THE SUBMISSION OF A REVISED CHAPTER 11 BANKRUPTCY PLAN UNDER THE NEW PLAN COMMON STOCKHOLDERS WOULD RECEIVE FROM 60 CENTS TO 78 CENTS A SHARE LESS THAN WAS ANTICIPATED IN THE PREVIOUS PLAN AND WELL BELOW WHERE THE STOCK IS CURRENTLY TRADING PHP HEALTHCARE TUMBLED 2 3/8 TO 8 1/8 THE COMPANY ESTIMATED THIRDQUARTER PROFIT WAS DOWN ABOUT 50 FROM THE 27 CENTS A SHARE POSTED FOR THE FISCAL SECOND QUARTER THE ALEXANDRIA VA HEALTHCARE PROVIDER CITED A DROP IN DEMAND FOR ITS OUTPATIENT SERVICES LOUISIANAPACIFIC CORP TUMBLED 4 5/8 TO 70 7/8 AND GEORGIAPACIFIC LOST 2 3/8 TO 64 5/8 MERRILL LYNCH & CO TRIMMED INTERMEDIATETERM RATINGS ON THE SHARES OF BOTH FOREST PRODUCTS CONCERNS TO NEUTRAL FROM ABOVE AVERAGE ST JOHN KNITS A NEW ISSUE EDGED TO 17 1/2 FROM ITS 17ASHARE OFFERING PRICE ALL OF THE 68 MILLION SHARES ISSUED WERE SOLD BY ESCADA AG A GERMAN CLOTHING COMPANY WALMART STORES SLIPPED 7/8 TO 33 1/8 EVEN THOUGH IT INCREASED ITS QUARTERLY DIVIDEND 24 TO 325 CENTS THE MOST RECENT DIVIDEND WAS 525 CENTS A SHARE BUT THAT WAS BEFORE THE COMPANY PAID A 2FOR1 STOCK SPLIT IN FEBRUARY OTHER DEPARTMENT STORE STOCKS WERE WEAK JC PENNEY DROPPED 1 1/8 TO 84 7/8 CALDOR DECLINED 1 1/8 TO 31 1/8 DAYTON HUDSON FELL 3/8 TO 79 1/2 AND SEARS ROEBUCK EASED 3/4 TO 52 7/8 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 043 TO A RECORD 42231 THERE WERE 288 ADVANCERS AND 279 DECLINERS 9303120113 930312 BUSINESS BRIEF ROCHESTER TELEPHONE CORP BELLCORE IS HIRED AS ADVISER FOR A MULTIMEDIA NETWORK ROCHESTER TELEPHONE CORP ROCHESTER NY SAID IT HIRED BELL COMMUNICATIONS RESEARCH THE REGIONAL BELL COMPANIES' RESEARCH AND DEVELOPMENT ARM TO ADVISE IT ON A POSSIBLE NEW FIBEROPTIC MULTIMEDIA TELECOMMUNICATIONS NETWORK THE INDEPENDENT LOCAL TELEPHONE COMPANY WITH OPERATIONS IN SEVERAL STATES WOULD PROVIDE VIDEO AND OTHER SERVICES TO ITS CUSTOMERS OVER THE NEW PHONE LINES THE RESEARCH ORGANIZATION KNOWN AS BELLCORE WILL PROVIDE TECHNICAL ADVICE AND CONSULTING TO ROCHESTER TELEPHONE IN THE DEVELOPMENT OF THE NEW NETWORK ROCHESTER TELEPHONE LATE LAST YEAR ANNOUNCED IT WOULD CONDUCT A FIELD TEST WITH USA VIDEO CORP OF A VIDEOONDEMAND SERVICE OVER PHONE LINES TO CUSTOMERS' TELEVISION SETS USA VIDEO CENTURY CITY CALIF WILL SUPPLY FEATURE PROGRAMMING INCLUDING MOVIES ROCHESTER TELEPHONE JOINS A GROWING LIST OF TELEPHONE COMPANIES THAT ARE LAUNCHING OR PLANNING TO LAUNCH VIDEOONDEMAND SERVICES BY THEMSELVES OR WITH CABLE PARTNERS 9303120112 930312 BUSINESS BRIEF DAYTON HUDSON NET INCREASED 30 FOR PERIOD AS SALES ROSE COSTS FELL DAYTON HUDSON CORP SAID GAINS AT ALL THREE OF ITS RETAIL STORE UNITS POWERED BY STRONGER SALES AND AGGRESSIVE COSTCUTTING PRODUCED A 30 INCREASE IN NET INCOME FOR ITS FISCAL FOURTH QUARTER BUT ANALYSTS SAID YESTERDAY THEY HAD EXPECTED THE IMPROVEMENT OVER A WEAK PERIOD A YEAR AGO ADDING THAT THE NATION'S FOURTHLARGEST RETAILER FACES A TOUGHER TIME THIS YEAR IMPROVING SALES COSTS CHAIRMAN KENNETH A MACKE WHO IS SET TO MEET WITH ANALYSTS IN NEW YORK TODAY SAID HE WILL TELL THEM THAT THE COMPANY IS EXPECTING 1993 TO BE MUCH LIKE LAST YEAR SOFTER SALES AND EARNINGS GAINS IN THE FIRST HALF OF THE YEAR AND A STRONGER PERFORMANCE IN THE SECOND HALF IN AN INTERVIEW MR MACKE SAID PRESIDENT CLINTON'S ECONOMIC PLAN HAS CAUSED CONSUMERS TO BE MORE CAUTIOUS IN THEIR DISCRETIONARY SPENDING WHICH PROBABLY WILL AFFECT RETAIL SALES HE ALSO SAID THAT ALTHOUGH DAYTON HUDSON WILL CONTINUE CUTTING COSTS THIS YEAR IT PROBABLY WON'T DUPLICATE THE SUCCESS IT ENJOYED IN THAT AREA LAST YEAR DAYTON HUDSON POSTED FOURTHQUARTER NET OF 249 MILLION OR 339 A SHARE FOR THE PERIOD ENDED JAN 30 COMPARED WITH PROFIT OF 192 MILLION OR 260 A SHARE IN THE YEARAGO PERIOD SALES IN THE PERIOD WERE 59 BILLION UP 12 FROM 525 BILLION THE EARNINGS WERE VERY MUCH IN LINE WITH OUR EXPECTATIONS AND THE ANALYSTS MR MACKE SAID THE EARNINGS REPORT DID LITTLE FOR DAYTON HUDSON'S COMMON SHARES WHICH WERE QUOTED AT 7950 DOWN 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE EARNINGS REPORT SHOWS A GOOD INCREASE FROM A DEPRESSED LEVEL SAID JANET MANGANO AN ANALYST WITH BURNHAM SECURITIES INC IN NEW YORK REMEMBER HOW DEPRESSED '91 WAS A BIG CONCERN IS DAYTON HUDSON'S CALIFORNIA OPERATIONS ON WHICH IT DEPENDS FOR SOME 30 OF ITS SALES THE COMPANY'S SLIDE IN CALIFORNIA HAS HALTED BUT DAYTON HUDSON ISN'T EXPECTING BIG GAINS THERE THIS YEAR WE'RE PLANNING OUR ENTIRE COMPANY CONSERVATIVE AND WE'RE PLANNING CALIFORNIA MORE CONSERVATIVE THAN THE ENTIRE COMPANY MR MACKE SAID 9303120111 930312 BUSINESS BRIEF SELECTIVE INSURANCE GROUP INC COMPANY TO PAY 34 MILLION TO SETTLE WITH NEW JERSEY SELECTIVE INSURANCE GROUP INC BRANCHVILLE NJ SAID IT SETTLED A DISPUTE WITH NEW JERSEY REGULATORS OVER ITS PARTICIPATION IN THE STATE'S FORMER HIGHRISK CAR INSURANCE POOL AS A RESULT THE INSURANCE COMPANY SAID IT WILL PAY 34 MILLION TO THE STATE'S INSURANCE POOL KNOWN AS THE JOINT UNDERWRITING ASSOCIATION IN ADDITION TO PROVIDING AN ADVANCE DEPOSIT OF 131 MILLION TO ANOTHER POOL THAT WAS CREATED AS AN INTERIM STEP TOWARD THE FORMATION OF A NEW INDUSTRYMANAGED INSURANCE POOL THE SETTLEMENT FOLLOWS AN ADMINISTRATIVE ACTION BROUGHT AGAINST SELECTIVE AND OTHER SERVICE CARRIERS OF JUA IN 1990 BY THE STATE INSURANCE DEPARTMENT ALLEGING THAT THE CARRIERS VIOLATED CERTAIN COVENANTS SUCH AS CHARGING UNREASONABLY HIGH RATES THE COMPANY ADMITTED NO LIABILITY AND SAID THE PAYMENT WOULD HAVE NO MATERIAL EFFECT ON ITS EARNINGS 9303120110 930312 CORRECTIONS & AMPLIFICATIONS ALBERTSON'S INC WILL HAVE ABOUT 121 MILLION COMMON SHARES OUTSTANDING AFTER IT COMPLETES BUYING SHARES FROM THE ESTATE OF ITS FOUNDER JA ALBERTSON THE PURCHASE PRICE FOR THE SHARES WAS BASED ON A 30DAY PERIOD ENDED FEB 21 AN ARTICLE YESTERDAY INCORRECTLY SAID THE COMPANY WOULD HAVE 1153 MILLION SHARES OUTSTANDING AND GAVE AN INCORRECT CONCLUDING DATE FOR SETTING THE SHARE PRICE 9303120109 930312 ALPHA I COMPLETES REDEMPTION BETHESDA MD ALPHA I BIOMEDICALS COMPLETED THE REDEMPTION OF ABOUT 11 MILLION CLASS B STOCKPURCHASE WARRANTS RAISING NEARLY 11 MILLION FOR DEVELOPMENT OF DRUGS USED IN THE TREATMENT OF HEPATITIS AND AIDS HOLDERS WHO REDEEMED THE WARRANTS PAID 10 EACH FOR ONE COMMON SHARE AND ONE FOURYEAR CLASS C WARRANT WHICH ENTITLES THE HOLDER TO BUY ONE COMMON SHARE AT 19 THE REDEMPTION'S PROCEEDS WILL BE USED FOR EXPANDING CLINICAL TRIALS AND MANUFACTURING CAPACITY FOR THE COMPANY'S THYMOSIN ALPHA 1 DRUG FOR HEPATITIS AND AIDS TREATMENT AND TO BEGIN ADDITIONAL TRIALS OF HGP30 AS AN AIDS VACCINE ALPHA I SHARES CLOSED UP 1 AT 1225 IN NATIONAL OVERTHECOUNTER TRADING 9303120108 930312 CONTINUUM IN ACQUISITION TALKS AUSTIN TEXAS CONTINUUM CO SAID IT IS DISCUSSING THE POSSIBLE ACQUISITION OF PAXUS CORP FOR STOCK THE COMPANY DIDN'T DISCLOSE ANY DETAILS OF THE TALKS BUT SAID ANY BID FOR THE SYDNEY AUSTRALIA COMPANY WOULD BE SUBJECT TO A VARIETY OF APPROVALS AND OTHER FACTORS BOTH COMPANIES ARE CONSULTING AND COMPUTER SERVICES CONCERNS 9303120107 930312 EXECUTIVE SEES RAPID GROWTH FOR THE MIDWEST EATON OFFICIAL SAYS REGION WILL SHOW LARGER GAINS THAN REST OF COUNTRY BY RALPH E WINTER SPECIAL TO THE WALL STREET JOURNAL CLEVELAND THE MIDWEST ECONOMY WILL GROW MORE RAPIDLY THAN THE NATION AS A WHOLE DURING 1993 AND FOR MOST OF THIS DECADE SAID ADRIAN T DILLON VICE PRESIDENT PLANNING FOR EATON CORP THE CLINTON ADMINISTRATION'S ECONOMIC PROGRAM WILL FAVOR CAPITAL INVESTMENT MANUFACTURING AND EXPORT WHICH IS WHAT WE DO IN THE MIDWEST MR DILLON SAID MR DILLON WHO PREVIOUSLY WAS EATON'S CHIEF ECONOMIST SAID RISING SAVINGS RATES AS THE BABYBOOM GENERATION REACHES MIDDLE AGE ALSO CONTRIBUTES TO THE TREND TOWARD MORE INVESTMENT AND LESS IMMEDIATE CONSUMPTION EATON A PRODUCER OF TRUCK PARTS AND ELECTRICAL CONTROLS WOULD BE ONE OF THE BENEFICIARIES SINCE THE ECONOMIC RECOVERY BEGAN NEARLY TWO YEARS AGO CAPITALEQUIPMENT OUTPUT HAS RISEN SLIGHTLY FASTER THAN THE AVERAGE FOR POSTWAR RECOVERIES MR DILLON SAID BY CONTRAST CONSUMER SPENDING AND CONSTRUCTION HAVE RECOVERED MUCH MORE SLOWLY THAN IN A TYPICAL RECOVERY RESULTING IN A WEAKERTHANAVERAGE ECONOMIC REBOUND NONETHELESS MR DILLON SAID THE CURRENT ECONOMIC EXPANSION IS SOLID AND WOULD CONTINUE FOR SEVERAL MORE YEARS WITHOUT THE ADMINISTRATION'S PROPOSED ECONOMIC STIMULUS IF ENACTED THE STIMULUS PACKAGE WOULD CONTINUE IN THE TRADITION OF FISCAL POLICY THAT IS TOO LATE TO DO ANY GOOD HE SAID SINCE WORLD WAR II BUSINESS EXPANSIONS HAVE LASTED AN AVERAGE OF 50 MONTHS MR DILLON SAID AND SINCE 1960 THEY'VE AVERAGED NEARLY SIX YEARS THERE'S ABSOLUTELY NO REASON WHY THIS ONE SHOULDN'T LAST AT LEAST AS LONG AS THE POSTWAR AVERAGE THE LONGERTERM PARTS OF THE CLINTON PROGRAM WOULD FAVOR THE MIDWEST HE SAID WHILE LIMITING GROWTH OF REGIONS MORE HEAVILY DEPENDENT ON CONSUMER SPENDING THE PROPOSED ENERGY TAXES AND THE HIGHER INCOME TAXES ON WEALTHY TAXPAYERS AND MIDDLEINCOME RETIREES WILL RESTRICT THE GROWTH IN CONSUMER SPENDING MR DILLON SAID SKEWING ECONOMIC GROWTH MORE TOWARD BUSINESS INVESTMENT AND EXPORTS HE PREDICTS CONSUMER SPENDING WILL RISE 29 THIS YEAR AND AN AVERAGE 24 YEARLY FOR THE 199397 PERIOD THAT'S BELOW HIS FORECAST FOR GROWTH IN OVERALL GROSS DOMESTIC PRODUCT OF 33 IN 1993 AND 3 ANNUALLY FOR 199397 GDP ROSE 21 IN 1992 HOWEVER BUSINESS PURCHASES OF EQUIPMENT WILL JUMP NEARLY 12 THIS YEAR HE ESTIMATES FOLLOWING A 75 INFLATIONADJUSTED GROWTH LAST YEAR FOR THE 199397 PERIOD HE SAID BUSINESS SPENDING FOR EQUIPMENT WILL CLIMB AN AVERAGE 86 A YEAR MR DILLON SAID HE ISN'T COUNTING ON THE ADMINISTRATION'S PROPOSED TEMPORARY INVESTMENT TAX CREDIT TO PRODUCE THE CAPITALSPENDING SURGE EQUIPMENT PURCHASES WILL RISE MAINLY BECAUSE BUSINESS EXECUTIVES SEE TREMENDOUS OPPORTUNITY TO RAISE PRODUCTIVITY CAPITAL COSTS ARE RELATIVELY LOW AND CORPORATE MANAGEMENTS HAVE DECIDED THEY MUST INVEST TO REMAIN COMPETITIVE HE SAID A COMBINATION OF STRONG EQUIPMENT SPENDING AND RISING EXPORTS WILL CAUSE A 48 INCREASE IN INDUSTRIAL PRODUCTION THIS YEAR AND AVERAGE GROWTH OF 4 FOR THE 199397 PERIOD HE ESTIMATES UNLIKE MUCH OF THE 1980S INDUSTRIAL PRODUCTION THE MIDWEST'S MAINSTAY WILL OUTPACE OVERALL ECONOMIC GROWTH HE SAID MIDWEST MANUFACTURERS ALSO BENEFIT FROM LOW INFLATION AND THE RESULTING LOW INTEREST RATES MR DILLON SAID MOST MANUFACTURERS LEARNED 10 YEARS AGO HOW TO CONTROL COSTS WELL ENOUGH TO EARN RESPECTABLE PROFITS WITHOUT SIZABLE PRICE INCREASES HE SAID MANY SERVICE COMPANIES STILL MUST LEARN HOW TO DO THAT HE SAID WHICH HELPS EXPLAIN THE BIG LAYOFFS BY SERVICE COMPANIES DURING THE PAST YEAR OR SO THEY'LL SEE FURTHER TURMOIL HE SAID BECAUSE INFLATION IS LIKELY TO AVERAGE ONLY 25 FOR THE 199397 PERIOD LOWER INTEREST RATES CUT BORROWING COSTS FOR MANUFACTURERS AND ALSO STIMULATE SALES OF THE BIGTICKET PRODUCTS MANY MIDWESTERN CONCERNS MAKE MR DILLON SAID THE MIDWEST ALSO WILL BE A MAJOR BENEFICIARY OF THE NORTH AMERICAN FREE TRADE AGREEMENT IF THE PACT IS RATIFIED BY CONGRESS HE SAID MEXICO ALREADY IS A GROWING MARKET FOR CAPITAL GOODS AND OTHER MIDWEST PRODUCTS HE SAID AND NAFTA WOULD GREATLY INCREASE MEXICO'S PURCHASES RAPID GROWTH IN EXPORTS TO CANADA MEXICO OTHER LATIN AMERICAN COUNTRIES AND THE DEVELOPING NATIONS IN ASIA WILL KEEP THE MIDWEST'S EXPORTS GROWING DESPITE RECESSION IN JAPAN GERMANY AND OTHER EUROPEAN NATIONS HE SAID ALSO THE MIDWEST WILL BE HURT LESS THAN MOST OTHER PARTS OF THE COUNTRY BY DEFENSE CUTBACKS MR DILLON SAID BECAUSE THE REGION DOESN'T HAVE MANY WEAPONS PLANTS 9303120106 930312 WATER BOTTLERS TAP ISSUE OF LABELING FDA TO SET RULE SPRING WATER SUPPORTERS FORM GROUP TO ADVANCE ITS CAUSE PURITY' FOR DRINKERS AT STAKE BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THE BOTTLED WATER BUSINESS ONE MAN'S SPRING CAN BE ANOTHER MAN'S HOLE IN THE GROUND WITH MILLIONS OF DOLLARS AT STAKE THE DISTINCTIONS ARE SIGNIFICANT A NEWLY FORMED GROUP OF SPRING WATER BOTTLERS IS QUESTIONING THE FOOD AND DRUG ADMINISTRATION'S PROPOSED LABELING REGULATIONS ON BOTTLED WATER ASSERTING THE RULES DON'T MAKE A PROPER DISTINCTION BETWEEN SPRING AND WELL WATER WELL WATER AND SPRING WATER AREN'T THE SAME SAYS JAMES M HEATON III PRESIDENT OF THE NATIONAL SPRING WATER ASSOCIATION WE'RE TALKING IN TERMS OF TRUTH IN LABELING FOR THE PUBLIC WHICH SPENDS MORE THAN 2 BILLION A YEAR ON BOTTLED WATER THE GROUP PERSUADED THE FDA TO EXTEND THE COMMENT PERIOD TO APRIL 7 FROM MARCH 8 BEFORE IT ISSUES A FINAL REGULATION GIVEN THE HUGE EXPENDITURES ON ADVERTISING BOTTLED WATER AS WELL AS GROWING PUBLIC CONCERNS OVER WATER PURITY WATER LABELING HAS BECOME AN ISSUE PARTICULARLY FOR CUSTOMERS WHO WANT TO AVOID DRINKING WATER FROM MUNICIPAL SUPPLIES THE FDA'S REGULATORY PROPOSAL FOR INSTANCE NOTES THAT IN A SIGNIFICANT NUMBER OF SITUATIONS WATER FROM A MUNICIPAL SUPPLY IS BEING MARKETED AS SPRING OR WELL WATER SUCH LABELING IS MISLEADING THE FDA DECLARES IN SUCH CASES IT WOULD REQUIRE THAT A LABEL INDICATE WATER COMES FROM A MUNICIPAL SOURCE AND THE FDA SAYS IT IS SEEKING TO BRING SOME UNIFORMITY TO A PROLIFERATION OF STATE EFFORTS TO ADDRESS FALSE AND MISLEADING LABELING CLAIMS FOR BOTTLED WATER ONE BOTTLED WATER COMPANY FOR EXAMPLE SPENT 80000 IN 1990 TO MAKE LABEL CHANGES TO MEET VARIOUS STATE RULES THE SPRING WATER SUPPORTERS ASSERT THE FDA RELIED TOO HEAVILY ON STANDARDS OF THE INTERNATIONAL BOTTLED WATER ASSOCIATION A TRADE GROUP WHOSE MEMBERS PRODUCE AND DISTRIBUTE 85 OF THE BOTTLED WATER SOLD IN THE US THE ASSOCIATION SAYS SINCE 1979 IT HAS BEEN ADVOCATING UNIFORM FEDERAL LABELING STANDARDS AN FDA SPOKESMAN DECLINED COMMENT ON THE SPRING WATER GROUP'S COMPLAINT BUT SAID THE COMMENT PERIOD WAS EXTENDED TO PERMIT MR HEATON'S GROUP TO COMPLETE A SURVEY OF CONSUMER PERCEPTIONS ABOUT SPRING WATER PEOPLE PERCEIVE SPRING WATER TO BE A PREMIUM PRODUCT COMING FROM PRISTINE AREAS MR HEATON SAYS PERMITTING PRODUCERS TO CHARGE MORE BECAUSE IT IS IN LIMITED SUPPLY THE COST TO BOTTLE ACTUAL SPRING WATER FAR EXCEEDS WHAT IT WOULD COST TO BOTTLE WELL WATER UNDER THE PROPOSED RULES SPRING WATER WOULD BE DEFINED AS BOTTLED WATER OBTAINED FROM AN UNDERGROUND FORMATION FROM WHICH WATER FLOWS NATURALLY TO THE SURFACE OR WHICH WOULD FLOW NATURALLY TO THE SURFACE IF IT WERE NOT COLLECTED BELOW THE EARTH'S SURFACE BUT THE PROPOSAL ALSO WOULD ALLOW SPRING WATER TO BE COLLECTED AT THE SPRING OR THROUGH A BORE HOLE NEXT TO THE POINT OF EMERGENCE AS LONG AS IT MAINTAINS ALL THE PHYSICAL PROPERTIES OF WATER FLOWING NATURALLY TO THE SURFACE THAT DEFINITION WOULD LET WELL PRODUCERS RIDE ON THE COATTAILS OF SPRING WATER COMPANIES MR HEATON SAYS LISA PRATS VICE PRESIDENT OF THE BOTTLED WATER ASSOCIATION SAYS THE MAJORITY OF THE BOTTLED WATER INDUSTRY COLLECTS SPRING WATER FROM A BORED HOLE ADJACENT TO THE NATURAL ORIFICE SHE SAYS PUMPING FROM A BORE HOLE IS AN ACCEPTABLE METHOD USED ALL OVER EUROPE AND ONE THAT DOESN'T CHANGE THE COMPOSITION OF SPRING WATER THE RULE CHALLENGERS SHE SUGGESTS ARE DOING SOMETHING FOR THEIR OWN MARKETING PURPOSES FLETCHER DRISCOLL A HYDROGEOLOGIST AT GERAGHTY & MILLER A MINNEAPOLIS ENVIRONMENTAL CONSULTING FIRM SAYS IN THE PUBLIC'S MIND THERE IS SOMETHING MAGICAL ABOUT THE WORD SPRING WATER THAT DENOTES PURITY AND GOODTASTING QUALITIES AND IS SAFE TO DRINK BUT MR DRISCOLL WHO WAS ASKED BY THE NATIONAL SPRING WATER ASSOCIATION TO COMMENT ON THE FDA'S PROPOSED RULES SAYS THAT FROM A HYDROGEOLOGICAL STANDPOINT THERE IS REALLY NO DIFFERENCE BETWEEN SPRING WATER AND GROUND WATER WHICH CONSTITUTES THE MAJORITY OF BOTTLED WATER IT'S IN THE MARKETING HE SAYS FRANK LEONARDO PRESIDENT OF DEER PARK SPRING WATER INC A CARLSTADT NJ UNIT OF CLOROX CO SAYS MOST OF HIS COMPANY'S WATER IS FREEFLOWING AND COLLECTED WITHOUT PUMPING HE DOESN'T HAVE A PROBLEM WITH THE FDA'S PROPOSED RULES ON CALLING PUMPED WATER SPRING WATER AS LONG AS THE PUMPED WATER DOESN'T CHANGE IN COMPOSITION FROM THE PUMPING BEVERAGE INDUSTRY CONSULTANT TOM PIRKO PRESIDENT OF BEVMARK INC LOS ANGELES SAYS THAT THE PUBLIC IS GETTING SPRING WATER UNDER THE CURRENT PROPOSED REGULATIONS SPRING WATER IS SPRING WATER NO MATTER HOW YOU TAP IT 9303120105 930312 DOMESTIC CAR MAKERS SLATE 198 INCREASE IN OUTPUT THIS WEEK DETROIT THE 10 DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD 228187 CARS AND TRUCKS THIS WEEK UP 198 FROM THE 190419 VEHICLES BUILT IN THE SAME PERIOD A YEAR AGO FORD MOTOR CO SAID IT OPERATED ON DAILY OVERTIME AT 12 OF ITS US ASSEMBLY PLANTS THIS WEEK CHRYSLER CORP SAID IT SCHEDULED OVERTIME TOMORROW AND NEXT WEEK AT SIX OF ITS ASSEMBLY PLANTS IN ADDITION THE NO 3 AUTO MAKER SAID ITS ASSEMBLY PLANTS IN ST LOUIS AND BRAMALEA ONTARIO ARE SCHEDULED TO WORK SUNDAY GENERAL MOTORS CORP SAID IT PLANS DAILY OVERTIME NEXT WEEK AT ITS SATURN PLANT IN SPRING HILL TENN AND AT EIGHT OF ITS TRUCK ASSEMBLY PLANTS 9303120104 930312 STORA PLANS TO CUT DIVIDEND AND REPORTS A BIG LOSS FOR 1992 SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM STORA AB SWEDEN'S LARGEST FOREST AND PAPER GROUP PROPOSED TO SLASH ITS DIVIDEND IN HALF TO 65 KRONOR 085 CENTS A SHARE AFTER AN OPERATING LOSS AND LARGE RESTRUCTURING CHARGES PUSHED THE GROUP DEEP INTO THE RED LAST YEAR STORA POSTED A NET LOSS FOR 1992 OF 136 BILLION KRONOR SWINGING FROM A PROFIT OF 595 MILLION KRONOR A YEAR EARLIER THE LOSS CONFIRMED FIGURES CONTAINED IN A PRELIMINARY STATEMENT ISSUED BY THE GROUP IN JANUARY ESTIMATING THE YEAR'S LOSS AT AROUND 14 BILLION KRONOR THE LOSS CORRESPONDS TO A PERSHARE LOSS OF 187 KRONOR COMPARED WITH 86 KRONOR IN PERSHARE EARNINGS THE YEAR EARLIER EARNINGS WERE AFFECTED BY ONETIME RESTRUCTURING CHARGES OF 847 MILLION KRONOR AND A ONETIME CAPITAL GAIN OF 375 MILLION KRONOR THE CHARGE TAKEN AGAINST EARNINGS COVERS RATIONALIZATION AND COSTCUTTING MEASURES NECESSARY TO COUNTERBALANCE SAGGING MARKETS STORA SAID THE CHARGE WILL COVER THE SHUTDOWN OF CERTAIN MACHINES AND RELATED STAFF CUTS OF 2500 PEOPLE IN 1993 IN ADDITION TO CUTS OF 6500 PEOPLE ALREADY CARRIED OUT SINCE 1990 GAINS FROM COSTCUTTING MEASURES WERE NOT LARGE ENOUGH TO OFFSET SHARPLY LOWER PRICES FOR STORA'S MAIN PRODUCTS REVENUE OVERALL FELL 96 TO 469 BILLION KRONOR FROM 519 BILLION KRONOR THE SALES SLUMP WAS ATTRIBUTED TO DEPRESSED PRICE LEVELS WITH VOLUME DELIVERIES LITTLE CHANGED 9303120103 930312 NEW FUEL BLEND APPARENTLY HELPS CITIES' AIR QUALITY BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NEW FEDERAL PROGRAM TO CUT CARBON MONOXIDE EMISSIONS FROM AUTOMOBILES HAS SHARPLY REDUCED THE NUMBER OF DAYS ON WHICH VARIOUS CITIES FAILED TO MEET AIR QUALITY STANDARDS THE ENVIRONMENTAL PROTECTION AGENCY SAID THE PROGRAM INITIATED UNDER THE 1990 CLEAN AIR ACT REQUIRES THAT 39 METROPOLITAN AREAS DISPENSE SPECIALLY BLENDED OXYGENATED FUELS AT GAS STATIONS DURING THE WINTER MONTHS BY IMPROVING ENGINE COMBUSTION THE FUELS REDUCE CARBON MONOXIDE EMISSIONS WHICH ARE GENERALLY HIGHEST IN WINTER BECAUSE OF SLOWSTARTING CARS AND STAGNANT AIR THE EPA SAID THAT PRELIMINARY MONITORING DATA IN 20 AREAS FROM NOV 1 WHEN THE PROGRAM BEGAN THROUGH JAN 31 SHOWED ONLY TWO INSTANCES ON WHICH AIR QUALITY FAILED TO MEET THE HEALTH STANDARD DURING THE COMPARABLE PERIOD A YEAR EARLIER THERE WERE 43 SUCH INSTANCES ALTHOUGH WEATHER CAN BE A FACTOR IN THE AMOUNT OF CARBON MONOXIDE IN THE ATMOSPHERE FROM YEAR TO YEAR ENVIRONMENTALISTS ATTRIBUTED MUCH OF THE CHANGE TO THE NEW PROGRAM IT CERTAINLY IS CONSISTENT WITH WHAT WE HAD HOPED WOULD OCCUR SAID BLAKE EARLY A WASHINGTON REPRESENTATIVE OF THE SIERRA CLUB BUT DOUBTS REMAIN ABOUT THE HEALTH EFFECTS OF ONE OF THE OXYGENATED FUELS USED IN THE NEW PROGRAM METHYL TERTIARY BUTYL ETHER THE NATIONAL CENTERS FOR DISEASE CONTROL AND PREVENTION IS INVESTIGATING REPORTS THAT MBTE HAS CAUSED HEADACHES AND DIZZINESS AMONG MOTORISTS IN ALASKA THE EPA IS STUDYING THE PROBLEM AND EXPECTS ITS RESEARCH TO BE COMPLETE BY THE END OF OCTOBER SEPARATELY THE EPA WILL ANNOUNCE TODAY THAT IT WILL GRANT TEMPORARY SULFURDIOXIDE ALLOWANCES TO 18 POWER PLANTS THAT HAVE PLEDGED TO REDUCE EMISSIONS BY 90 OR MORE SULFUR DIOXIDE IS THE MAJOR CAUSE OF ACID RAIN THE ALLOWANCES GRANTED UNDER THE CLEAN AIR ACT WILL ALLOW THE COMPANIES TO EMIT SULFUR DIOXIDE EMISSIONS BEYOND THE NORMAL LIMIT FOR A TIME THEY WILL GO TO COMPANIES THAT HAVE PLEDGED TO ADD SCRUBBERS AND OTHER TECHNOLOGY TO REDUCE EMISSIONS FROM COALFIRED PLANTS IN EXCHANGE FOR THE ALLOWANCE THE COMPANIES ARE REQUIRED TO LOWER EMISSIONS BY 90 FROM 1995 TO 1997 THE CLEANAIR LAW REQUIRES REDUCTIONS BY ONLY 50 DURING THAT PERIOD AMONG THE COMPANIES TO BE GRANTED ALLOWANCES ARE ILLINOIS POWER CO THE TENNESSEE VALLEY AUTHORITY NEW YORK STATE ELECTRIC & GAS CORP AND KENTUCKY UTILITIES CO A UNIT OF KU ENERGY CORP 9303120102 930312 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 1/16 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 312 120 TO 149 DAYS 315 150 TO 239 DAYS 318 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 316 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 267 TWO MONTHS 268 THREE MONTHS 283 SIX MONTHS 300 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 305 ONE MONTH 310 THREE MONTHS 322 SIX MONTHS BANKERS ACCEPTANCES 303 30 DAYS 303 60 DAYS 303 90 DAYS 307 120 DAYS 310 150 DAYS 312 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 3/8 SIX MONTHS 3 5/8 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 625 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MARCH 8 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 298 13 WEEKS 309 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 722 60 DAYS 731 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 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 719 60 DAYS 729 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 281 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9303120101 930312 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED MARCH 5 ACCOUNTED FOR 122 OR AN AVERAGE 311 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 66 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 35 INVOLVED STOCKINDEX ARBITRAGE UP FROM 302 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 45 OF PROGRAM TRADING WAS FOR CUSTOMERS WHILE 396 REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 154 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES FIRST BOSTON AND UBS SECURITIES DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND MERRILL LYNCH DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9303120100 930312 SOUTH KOREA AWAITS RULING ON CHIP TARIFFS FIRMS COULD BE FORCED OUT OF US MARKET IF LEVIES TOP 15 OFFICIALS SAY BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA THE BIGTHREE ELECTRONICS PRODUCERS OF SOUTH KOREA ARE HOLDING THEIR BREATH AHEAD OF FINDINGS FROM THE US DEPARTMENT OF COMMERCE THAT WILL DETERMINE THE MAGNITUDE OF ANTIDUMPING TARIFFS ON SOUTH KOREANMADE SEMICONDUCTORS THE DUTIES SCHEDULED TO BE ANNOUNCED MONDAY WILL ALL BUT WRAP UP A DUMPING SUIT FILED LATE LAST YEAR BY A US SEMICONDUCTOR MANUFACTURER AGAINST ITS SOUTH KOREAN COMPETITORS THE SUIT ALTHOUGH A LEGACY OF THE BUSH ADMINISTRATION HAS SET USSOUTH KOREAN TRADE RELATIONS UNDER NEW PRESIDENTS BILL CLINTON AND KIM YOUNG SAM OFF TO A ROCKY START THIS IS A SYMBOLIC CASE FOR THE CLINTON ADMINISTRATION AND THE NEW SOUTH KOREAN GOVERNMENT SAYS NOH JANG WOOH DIRECTOR GENERAL OF SOUTH KOREA'S MINISTRY OF TRADE & INDUSTRY THINGS HAVE GONE SMOOTHLY IN THE LAST YEAR BUT THIS IS THE FIRST REAL CASE TO BE REVIEWED AND SO THE SOUTH KOREAN GOVERNMENT IS VERY MUCH INTERESTED IN HOW IT IS HANDLED UNLESS THE MARGINS ARE REVISED OR OVERRIDDEN BY THE US INTERNATIONAL TRADE COMMISSION AFTER A 45DAY REVIEW PERIOD WHICH ANALYSTS SAY IS UNLIKELY UNLESS THE DUTIES ARE EXCESSIVELY HIGH THEY WILL TAKE EFFECT ON APRIL 29 PRELIMINARY RULINGS BY US OFFICIALS HAVE CALLED FOR DUTIES OF UP TO 87 ON THE KOREANMADE CHIPS AT ISSUE DYNAMIC RANDOM ACCESS MEMORIES OR DRAMS THE THREE ELECTRONICS COMPANIES UNDER INVESTIGATION ARE SAMSUNG ELECTRONICS CO HYUNDAI ELECTRONICS INDUSTRIES CO AND GOLDSTAR CO ALTHOUGH TRADE OFFICIALS DOUBT THE FINAL LEVIES WILL BE ANYWHERE NEAR THAT HIGH THEY SAY MARGINS ABOVE 15 WOULD DRIVE ONE OF SOUTH KOREA'S MOST SOPHISTICATED PRODUCTS OUT OF THE WORLD'S BIGGEST DRAM MARKET THAT WOULD DELIVER A BODY BLOW TO SOUTH KOREA'S OTHER BIG CONGLOMERATES WHICH ARE STRUGGLING TO ENTER HIGHTECHNOLOGY FIELDS AND TO ABANDON LESS SOPHISTICATED INDUSTRIES CROWDED WITH NEW COMPETITORS FROM SOUTHEAST ASIA AND CHINA IT COULD ALSO LEAD TO HIGHER COSTS FOR US CLIENTS OF SOUTH KOREANMADE CHIPS MANY OF WHICH ARE TRYING TO COPE WITH THE RESTRUCTURING OF THE GLOBAL COMPUTER INDUSTRY MARGINS OF 15 IS THE MINIMUM LEVEL FOR OUR EXPORTERS JUST TO MAINTAIN MARKET SHARE SAYS MR NOH IF IT'S OVER THAT THEY'LL HAVE TO LOOK SOMEWHERE ELSE THAT WON'T BE EASY LAST YEAR SOUTH KOREAN ELECTRONICS COMPANIES ACCOUNTED FOR 194 BILLION IN DRAMS SALES WORLDWIDE OR 18 OF THE TOTAL JUST OVER HALF OF THAT WAS SOLD TO THE US REPRESENTING A 30 SHARE OF THE US DRAM MARKET COMPARED WITH A 40 SLICE HELD BY JAPANESE PRODUCERS BUT HIGH DUMPING MARGINS ON SOUTH KOREAN CHIPS COULD CREATE A VACUUM THE JAPANESE ARE POISED TO FILL THE ONLY PARTY THAT WILL COME OUT AHEAD OF THIS IS JAPAN SAYS A US DIPLOMAT THAT MAY BE AN OVERSTATEMENT AS IN THE LONGTERM MICRON TECHNOLOGY INC OF BOISE IDAHO AND TEXAS INSTRUMENTS INC OF DALLAS ARE LIKELY TO BE BENEFICIARIES BOTH EXPECT TO BENEFIT FROM FIRMER AND MORE REALISTIC PRICES THAT COVER THEIR COSTS STILL THE RIFT SPOTLIGHTS WHAT CAN HAPPEN WHEN A FOREIGN BUSINESS CULTURE SUCH AS KOREA'S COMES UNDER THE SCRUTINY OF US OFFICIALS SEEKING TO DETERMINE FAIR MARKET VALUE ONCE THE COMMERCE DEPARTMENT DECLARES THAT A FOREIGN PRODUCT IS BEING SOLD IN THE US AT UNFAIRLY LOW PRICES IT MUST LEVY A DUMPING MARGIN TO MAKE UP THE DIFFERENCE BUT THAT ISN'T THE ONLY FACTOR THE SIZE OF THE MARGIN ALSO IS DETERMINED IN PART BY A LENGTHY STUDY OF THE ECONOMIC ENVIRONMENT IN WHICH THE PRODUCT WAS MADE IN THE CASE OF KOREA'S DRAMS WHAT MAY BE RULED BY US TRADE OFFICIALS AS A CALCULUS FOR DUMPING MAY BE REGARDED IN KOREA AS A FORMULA FOR SUCCESSFUL INDUSTRIALIZATION TAKE SAMSUNG ELECTRONICS SOUTH KOREA'S DOMINANT CHIP MAKER AND THUS THE COMPANY WITH THE MOST AT STAKE SAMSUNG WAS THE FIRST TO SUCCESSFULLY PRODUCE DRAM CHIPS ON THE GLOBAL MARKET PLACING IT IN DIRECT COMPETITION WITH SUCH HEAVYWEIGHTS AS JAPAN'S HITACHI ELECTRONICS LTD ITS ENTRY INTO THE MARKET WAS FINANCED IN PART THROUGH CHEAP LOANS IN 1990 THE SOUTH KOREAN GOVERNMENT DIRECTED THE NATION'S MAJOR CONGLOMERATES TO SPECIALIZE IN THREE CORE INDUSTRIES OFFERING PREFERRED LENDING TERMS AS AN INCENTIVE AS A RESULT SAMSUNG BECAME AN OVERNIGHT SUCCESS ON THE BACK OF CHEAP FINANCING COSTS FOR RESEARCH AND DEVELOPMENT THEREIN LIES A PROBLEM INDIRECT SUBSIDIES FOR R&D IS NOT UNCOMMON TRADE OFFICIALS SAY BUT IN A COUNTRY LIKE SOUTH KOREA WHERE INTEREST RATES HAVE BEEN KEPT HIGH FOR THE LAST FEW YEARS TO CONTROL INFLATION CHEAP CAPITAL COSTS CAN BE INTERPRETED AS A KEY COMPONENT OF ARTIFICIALLY LOW PRICES ON MANUFACTURED GOODS THAT PROVIDES COMPANIES LIKE MICRON TECHNOLOGY THE SOURCE OF THE DUMPING COMPLAINT WITH A RED FLAG TO WAVE IN THE FACE OF US COMMERCE INSPECTORS KOREA IS A CAPITALINTENSIVE PLACE AND SEMICONDUCTORS IS A CAPITALINTENSIVE INDUSTRY SO WHY ARE THEY THE LOWCOST PRODUCERS SAYS A WESTERN OFFICIAL ALL THESE SUBSIDIES MAKE THEM VULNERABLE SOUTH KOREA'S LOOSE ACCOUNTING STANDARDS COULD ALSO SPELL TROUBLE ESPECIALLY FOR SAMSUNG SOURCES CLOSE TO THE INSPECTION TEAM SAY THE THREE CONCERNS HAVE TOGETHER BEEN DEFERRING FOREIGN EXCHANGE LOSSES VALUED INTO THE TENS OF MILLIONS OF US DOLLARS OVER THE LAST TWO YEARS ROUGHLY COINCIDING WITH THE STEADY DEPRECIATION OF THE SOUTH KOREAN WON AGAINST THE YEN SOUTH KOREAN CHIP PRODUCERS IMPORT NEARLY A THIRD OF THEIR PARTS FROM JAPAN AND A STRONG YEN THUS ESCALATES THEIR PRODUCTION COSTS IN FACT THE RISING YEN IS A TWOEDGED SWORD FOR SOUTH KOREAN CHIP MAKERS ONE OF THE REASONS SOUTH KOREANMADE DRAMS HAVE SECURED SUCH A LARGE SHARE OF THE US MARKET IS BECAUSE THE RISING YEN HAS MADE JAPANESE CHIPS SO EXPENSIVE BUT SOONER OR LATER THE OFFICIALS SAY THE SOUTH KOREAN COMPANIES WILL HAVE TO WRITE OFF THOSE FOREIGN EXCHANGE LOSSES THAT COULD HAVE A SIGNIFICANT IMPACT ON THEIR EARNINGS CREDIT RATINGS AND ULTIMATELY THEIR ABILITY TO INVEST IN FACILITIES THAT CAN PRODUCE HIGHQUALITY PRICECOMPETITIVE GOODS A US BIAS IN FAVOR OF QUARTERLY BOOKING COULD ALSO WORK AGAINST THE BIG THREE IN THE US INVESTMENT FOR R&D IS CONSIDERED A CURRENT EXPENSE AND AS SUCH IS BOOKED ON A QUARTERLY BASIS IN SOUTH KOREA SUCH INVESTMENT CAN BE DEFERRED SAMSUNG MORE SO THAN ITS TWO DOMESTIC RIVALS HAS HUGE R&D EXPENSES ALSO WORKING AGAINST SOUTH KOREA'S BIG THREE IS THE SOUTH KOREAN GOVERNMENT'S BAD REPUTATION AMONG US COMMERCE OFFICIALS PARTICULARLY IN THE FIELD OF COPYRIGHT PROTECTION SOUTH KOREA HAS ALREADY BEEN NAMED AS A POSSIBLE CANDIDATE FOR THE US'S LIST OF INTELLECTUAL PROPERTY RIGHTS VIOLATORS AND SOURCES CLOSE TO THE SEMICONDUCTOR DISPUTE SAY THE POSITIVE RULING ON MICRON TECHNOLOGY'S PETITION WAS INTENDED IN PART AS A WARNING SHOT OVER IPR ISSUES SOUTH KOREAN TRADE OFFICIALS HAVE GOTTEN THE MESSAGE ACCORDING TO THEIR US COUNTERPARTS AND ARE SCRAMBLING TO TIGHTEN AND ENFORCE IPR PROTECTION LAWS TO DUCK A CITATION UNDER THE US'S SUPER 301 PROVISIONS BUT IF USSOUTH KOREAN TRADE TIES ARE PRICKLY THE CLINTON ADMINISTRATION HAS DONE LITTLE TO HELP SMOOTH THEM OUT OFFICIALS ON BOTH SIDES COMPLAIN OF A LACK OF DIRECTION FROM WASHINGTON WHERE THE CLINTON TRADE TEAM IS STILL INCOMPLETE SOUTH KOREAN NEGOTIATORS AND US DIPLOMATS IN SEOUL TRIED TO SECURE A SUSPENSION AGREEMENT THAT WOULD HAVE DELAYED DUMPING LEVIES IN RETURN FOR A PRICING FRAMEWORK NEGOTIATED BETWEEN THE TWO GOVERNMENTS AND THE COMPANIES INVOLVED BUT WITH ONLY HOLDOVERS FROM THE OUTGOING BUSH ADMINISTRATION WITH WHICH TO DEAL THE TALKS FLOUNDERED LETTERS SUBMITTED BY US COMPUTER MAKERS SUPPORTING A SUSPENSION AGREEMENT FAILED LARGELY BECAUSE THEY LACKED CONVICTION THE LETTERS WERE LIKE ABSTRACT PAINTINGS WITH TRACES OF LIGHT SAYS A WESTERN OFFICIAL CLOSE TO THE NEGOTIATIONS YOU COULD HAVE READ WHATEVER YOU WANTED TO READ IN THEM THE LUKEWARM ENDORSEMENTS MAY HAVE BEEN INFLUENCED BY THE US COMPUTER INDUSTRY'S EXPERIENCE WITH A SIMILAR CASE INVOLVING JAPANESE SEMICONDUCTORS IN 1985 WHILE REVIEWING AN ANTIDUMPING PETITION FILED BY A GROUP OF DOMESTIC SEMICONDUCTOR PRODUCERS WHICH INCLUDED MICRON TECHNOLOGY US AND JAPANESE TRADE OFFICIALS NEGOTIATED A SOCALLED FAIR MARKET VALUE AGREEMENT ON CHIPS SOLD IN THE US THE ARRANGEMENT WHICH SET A PRICE LEVEL THAT NO PRODUCER COULD UNDERCUT IN EFFECT CREATED AN INFORMAL CARTEL AMONG SEMICONDUCTOR PRODUCERS THAT DROVE CHIP PRICES SKYWARD 9303120099 930312 MARKETING & MEDIA ADVERTISING HOTEL CHAINS NOW START SNIPING AT EACH OTHER AMID HARD TIMES BY KEVIN GOLDMAN FOR WEARY HOTEL OWNERS BESET BY SLACK TRAVEL BY VACATIONERS AND BUSINESS PEOPLE ALIKE THE ADAGE NO ROOM AT THE INN COULDN'T BE FURTHER THAN THE TRUTH ON MOST NIGHTS CLOSE TO HALF OF THE NATION'S 31 MILLION HOTEL ROOMS ARE UNOCCUPIED PRICE INCREASES HAVE FALLEN BEHIND THE RATE OF INFLATION FOR SIX CONSECUTIVE YEARS AND WHEN TIMES GET HARD ADVERTISING GETS HARDEREDGED THE DEPRESSED BUSINESS HAS BROUGHT OUT A NASTINESS AND BLUNTNESS IN ADVERTISING THAT INDUSTRY WATCHERS SAY IS UNPRECEDENTED HOTELS ARE SNIPING AT EACH OTHER BY NAME IN ADS A PRICE WAR RECALLING THE PITCHED FARE BATTLES IN THE AIRLINE INDUSTRY YEARS AGO IS ESCALATING WITH NO END IN SIGHT AND HOTEL CHAINS ARE INCREASING AD SPENDING AND SHIFTING AGENCIES IN AN EFFORT TO BREAK THROUGH THE TRAVEL CLUTTER MARRIOTT HOTELS RESORTS & SUITES SAYS IT WILL INCREASE ITS AD SPENDING AS MUCH AS 20 THIS YEAR THAT COULD PUSH THE BUDGET WELL BEYOND THE NEARLY 35 MILLION IT SPENT IN 1991 ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH WILL RELEASE MORE CURRENT FIGURES LATER THIS MONTH HYATT HOTELS WILL SPEND MORE AGGRESSIVELY IN THE UPCOMING YEAR THAN WE SPENT PREVIOUSLY SAYS MARC YANKOFSKY THE CHAIN'S SENIOR VICE PRESIDENT OF MARKETING IT PLANS TO SELECT A NEW AD AGENCY EARLY NEXT MONTH FOR ITS OWN 25 MILLION ACCOUNT RAMADA ALSO SAYS IT WILL UP THE ANTE THAT MARKS AN ENCOURAGING REBOUND FOR A SAGGING INDUSTRY THAT HAS BEEN IN AN ADVERTISING RETREAT IN RECENT YEARS SPENDING FELL 22 IN 1991 TO 5372 MILLION AND LAST YEAR IT ROSE LESS THAN 3 MILLION THE RAMADA CHAIN OWNED BY HOSPITALITY FRANCHISE SYSTEMS IS IN THE SECOND PHASE OF A CAMPAIGN THAT SINGLES OUT RIVAL HOLIDAY INN IN TELEVISION AND PRINT ADS ANCHORED BY THE SNEERING SLOGAN RAMADA'S IN HOLIDAY'S OUT THE PARSIPPANY NJBASED COMPANY HAS NO RESERVATIONS ABOUT BEING ONE OF THE FIRST TO TARGET A COMPETITOR THE CONSUMER PERCEPTION IS THAT HOLIDAY INN IS THE LEADER SO RAMADA HAD EVERYTHING TO GAIN BY INFORMING EVERYONE THAT ITS PRODUCT COMPARES FAVORABLY SAYS ED TEDESCHI A PARTNER OF MESSNER VETRE BERGER MCNAMEE SCHMETTERER THE AD AGENCY THAT CREATED RAMADA'S ADS HOLIDAY INN DECLINED COMMENT ADS FOR RAMADA INTERNATIONAL'S RENAISSANCE HOTELS MAKE AN EVEN MORE PUCKISH PITCH FEATURING ENDORSEMENTS FROM PEOPLE WITH THE LAST NAMES OF HILTON MARRIOTT AND HYATT THE HOTEL CHAINS DIDN'T LAUGH AND THIS WEEK SUED RAMADA INTERNATIONAL HOTELS & RESORTS AND ITS PARENT COMPANY NEW WORLD HOTELS HOLDINGS LTD OF HONG KONG RAMADA DECLINED COMMENT AND THE AD AGENCY RESPONSIBLE BACKUS TURNER & PARTNERS DIDN'T RETURN SEVERAL CALLS SEEKING COMMENT WHEN THE CHAINS AREN'T SNIPING AT EACH OTHER BY NAME THEY ARE DOING SO INDIRECTLY BY ENGAGING IN SOCALLED RACK WARS THE RACK IS THE CHART LOCATED ON THE BACK OF THE HOTEL ROOM DOOR LISTING THE HOTEL'S RATES APPARENTLY ACCORDING TO THE SNIPING ONLY RUBES PAY WHAT IS LISTED THE RACK RATE IS THE POINT AT WHICH NEGOTIATING BEGINS SAYS PETER YESAWICH PRESIDENT OF ROBINSON YESAWICH AND PEPPERDINE A HOSPITALITY MARKETING AND ADVERTISING FIRM BASED IN ORLANDO FLA PRICE IS THE WAY HOTEL CHAINS CAN EFFECTIVELY DIFFERENTIATE FROM ONE ANOTHER THE SHIFT IN DIRECTION OF HOTEL ADVERTISING ISN'T WITHOUT LOGIC FOR YEARS HOTELS USED TO FEATURE ADVERTISING WITH SERENE SHOTS OF CALM CLEAR POOLS SPOTLESS SPACIOUS ROOMS AND A WELLMANNERED AND ALWAYS SMILING STAFF THE PROBLEM ALL HOTEL ADVERTISING AND WORSE ALL HOTELS BEGAN TO LOOK ALIKE EVERYONE HAS THE POOL THE NICE ROOM AND THE SMILING BELLBOYS SAYS CHEKITAN DEV A MARKETING PROFESSOR AT CORNELL UNIVERSITY'S HOTEL SCHOOL SO THE ADS HAVE TO SAY WHAT THE HOTEL WILL OFFER THE CUSTOMER FROM A VALUE STANDPOINT WHICH EXPLAINS HILTON HOTEL'S BOUNCE BACK CAMPAIGN LIKE OTHER HOTEL CHAINS HILTON IS PUSHING PACKAGES ON WEEKENDS WHEN THE LIGHTS ARE REALLY OFF IN THE NATION'S 28000 HOTELS BY FRIDAY AFTERNOON BUSINESS CUSTOMERS HAVE FLED BACK TO THEIR HOMES AND LEISURE TRAVELERS AREN'T LEAVING HOME FOR QUIRKY WEEKEND TRIPS EITHER HILTON IS TRYING TO CONVINCE WOULDBE CUSTOMERS THAT IF THEY RELAX ON THE WEEKEND IN A HILTON HOTEL OF COURSE THEY WILL BOUNCE BACK RESTED AND READY FOR A PRODUCTIVE WORK WEEK HOTELS NEED A WAKEUP CALL THE INDUSTRY HAS YET TO RECOVER FROM VAST OVERBUILDING IN THE 1980S THE OCCUPANCY RATE LAST YEAR WAS 617 ACCORDING TO SMITH TRAVEL RESEARCH WHICH TRACKS MARKET SHARE FOR THE HOTEL INDUSTRY WHILE THAT WAS UP 15 PERCENTAGE POINTS FROM THE YEAR BEFORE 1991 WAS THE WORST YEAR FOR HOTEL OCCUPANCY IN OVER TWO DECADES SAYS MARK LOMANNO SMITH'S EXECUTIVE DIRECTOR THERE SIMPLY ARE TOO MANY ROOMS AND TOO FEW GUESTS TO FILL THEM PROFITABLY HE SAYS THAT EXPLAINS WHY CIVILITY HAS CHECKED OUT SAYS MR LOMANNO THERE IS A LOT MORE OF THE CUTTHROAT BUSINESS GOING ON WITH MENTIONING COMPETITORS THIS USED TO BE A GENTLEMAN'S BUSINESS OF COURSE THE DIRECT SNIPING IS LIMITED THERE ARE DANGERS IN ENGAGING IN NAMECALLING WE WOULDN'T RULE OUT NAMING A COMPETITOR SAYS MR YANKOFSKY FROM HYATT BUT YOU HAVE TO MAKE SURE THAT SOME OF THE MUD YOU SLING ALSO DOESN'T END UP ON YOURSELF ONE SUCH CHAIN IS MARRIOTT AND ITS AD AGENCY FCB/LEBER KATZ PARTNERS IT IS UNVEILING A NEW CAMPAIGN SOON FEATURING JW BILL MARRIOTT JR THE CHAIN'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE SIX TELEVISION SPOTS AND PRINT ADS WILL HIGHLIGHT SOME OF MARRIOTT'S SPECIAL SERVICES THE SPOTS ARE SCHEDULED TO BREAK ON THREE CABLE NETWORKS CNN HEADLINE NEWS AND A&E SAYS STEVE WEISZ MARRIOTT'S SENIOR VICE PRESIDENT OF SALES AND MARKETING WE'RE GOING TO TAKE THE HIGH ROAD WPP GROUP THE BRITISH ADAGENCY HOLDING COMPANY REPORTED A LOSS OF 119 MILLION 17 MILLION IN 1992 AND SAID IT PLANS TO RAISE 88 MILLION IN A RIGHTS OFFERING TO STRENGTHEN ITS BALANCE SHEET AND PAY SHORTTERM DEBT THE LOSS THIS YEAR COMPARES WITH 1991 NET INCOME OF 31 MILLION OR 98 CENTS PER AMERICAN DEPOSITARY RECEIPT EACH ADR IS THE EQUIVALENT TO TWO WPP SHARES WPP SAID IT PLANS TO RESUME PAYING A DIVIDEND FORECASTING ONE CENT PER ADR IN 1993 WPP'S OGILVY & MATHER AND J WALTER THOMPSON UNITS WERE BOTH PROFITABLE AND REVENUE WAS UP 1 AT OGILVY AND GREW 11 AT THOMPSON SCALI MCCABE SLOVES JUST BROKE EVEN FOR THE YEAR HOWEVER WITH REVENUE UP 2 WPP'S PUBLICRELATIONS BUSINESS CONTINUED TO SUFFER WITH 14 REVENUE DECLINES AT BOTH HILL & KNOWLTON AND OGILVY ADAMS & RINEHART OVERALL PROFITS BEFORE TAXES AND EXCEPTIONAL ITEMS ROSE 40 TO 538 MILLION LAST YEAR WPP SAID REVENUE INCREASED 56 TO 127 BILLION THE RESULTS INCLUDE A 306 MILLION CHARGE LARGELY FOR RESTRUCTURING AND A 154 MILLION CHARGE MOSTLY FOR A NONCASH WRITEOFF OF GOODWILL UNDER THE RIGHTS ISSUE FOUR NEW ORDINARY SHARES ARE BEING OFFERED AT 45 PENCE APIECE FOR EVERY FIVE SHARES OR WARRANTS OWNED BY SHAREHOLDERS THE PROCEEDS WILL BE USED TO PAY BACK A LARGE PART OF A 150 MILLION BRIDGE LOAN DUE IN JULY 1994 WHICH WPP'S BANKER CREDITORS EXTENDED AS PART OF A CAPITAL RESTRUCTURING LAST SUMMER WPP WHICH IS IN TALKS TO SELL ITS SCALI UNIT TO INTERPUBLIC GROUP OF COS SAID IT WOULD USE THE SALE OF ASSETS TO HELP PAY BACK THE REST OF THE BRIDGE BORROWINGS WPP'S NET AVERAGE DEBT LAST YEAR WAS 437 MILLION DOWN ABOUT 8 FROM 1991 BBDO CHICAGO OMNICOM GROUP AGENCY BBDO HIRED STEPHEN LAGATTUTA WHO RESIGNED AS VICE CHAIRMAN OF WB DONER & CO IN JUNE TO HEAD ITS CHICAGO OFFICE AS PRESIDENT AND CHIEF EXECUTIVE MR LAGATTUTA 50 YEARS OLD SUCCEEDS ERIC HARKNA WHO HAD HEADED THE OFFICE SINCE 1982 MR HARKNA 52 WAS NAMED A SENIOR VICE PRESIDENT AT THE WORLDWIDE AGENCY HANDLING THE BIG WRIGLEY GUM ACCOUNT AND MULTINATIONAL NEW BUSINESS HE REPORTS TO ALLEN ROSENSHINE BBDO CHAIRMAN AND CHIEF EXECUTIVE IN A RELATED MOVE ROGER MOHR 61 IS RETIRING AS VICE CHAIRMAN OF THE CHICAGO AGENCY COLE & WEBER WPP GROUP'S SEATTLE UNIT COLE & WEBER SAID ITS CHAIRMAN MARK MCNEELY AND PRESIDENT SCOTT MARSHALL ARE LEAVING THE AGENCY AUG 1 TO START UP A FIRM TO DEVELOP EMERGING MEDIA AUSTIN MCGHIE GENERAL MANAGER OF THE CHICAGO OFFICE OF SISTER AGENCY OGILVY & MATHER IS ASSUMING LEADERSHIP OF COLE & WEBER HE JOINS THE AGENCY AS AN EXECUTIVE VICE PRESIDENT NEXT MONTH AND ASSUMES THE TITLES OF PRESIDENT AND CHIEF EXECUTIVE IN AUGUST 9303120098 930312 FOREIGN EXCHANGE DOLLAR RALLY FADES SWISS FRANC SHINES AS RUSSIAN TURMOIL DOMINATES MARKET GREGORY L WHITE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK POLITICAL CONFLICT IN RUSSIA PREOCCUPIED THE MARKET THURSDAY DEALERS SAID THE ALREADYSTRONG DOLLAR UNABLE TO CAPITALIZE ON ITS STATUS AS A HAVEN IN TIMES OF TURMOIL ENDED MOSTLY LOWER INSTEAD THE SWISS FRANC WAS THE SHELTER OF CHOICE DEALERS SAID AND IT SURGED AGAINST THE DOLLAR AND THE MARK LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15235 SWISS FRANCS DOWN FROM 15355 FRANCS LATE WEDNESDAY THE DOLLAR ALSO WAS QUOTED AT 16615 MARKS DOWN FROM 16663 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11761 YEN DOWN FROM 11805 YEN STERLING WAS TRADING AT 14305 OFF FROM 14330 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11775 YEN AND AT 16635 MARKS RUSSIAN PRESIDENT BORIS YELTSIN'S SHOWDOWN WITH OPPONENTS IN THE LEGISLATURE SHARPENED THURSDAY AS THE CONGRESS VOTED TO STRIP HIM OF MANY OF HIS POWERS AND CANCEL A NATIONWIDE REFERENDUM HE HAD SOUGHT TO RESOLVE THE POWER STRUGGLE THE FIRST REPORTS OF MR YELTSIN'S TROUBLES DROVE THE DOLLAR HIGHER AS INVESTORS FLOCKED TO THE TRADITIONAL HAVEN IN TIMES OF POLITICAL CRISIS BUT THE BUYING RAPIDLY SUBSIDED DEALERS SAID DOUBTS ABOUT JUST WHAT THE VOTE MEANT FOR MR YELTSIN'S FUTURE ALONG WITH WIDESPREAD RELUCTANCE TO ADD TO DOLLAR HOLDINGS SQUELCHED THE RALLY DEALERS SAID YOU HAVE ALL THIS NOISE ALL THE TIME SAID JACK GRIFFIN AN ASSISTANT VICE PRESIDENT IN CORPORATE FOREIGN EXCHANGE AT FUJI BANK LTD IN NEW YORK IT COULD TOTALLY TURN AROUND AT THE VERY LAST MOMENT THE MARKET'S TOLERANCE FOR TURMOIL IN RUSSIA HAS INCREASED SINCE THE FAILED COUP IN AUGUST 1991 DROVE THE DOLLAR ABOVE 180 MARKS DEALERS SAID MR GRIFFIN ALSO NOTED THAT MR YELTSIN'S REPUTATION AS A SURVIVOR LED INVESTORS TO QUESTION JUST HOW SERIOUS A SETBACK WAS THURSDAY'S PRELIMINARY VOTE IN ADDITION DEALERS SAID MANY INVESTORS ALREADY HAVE BOUGHT DOLLARS IN ANTICIPATION OF A RALLY LATER THIS YEAR AND ARE RELUCTANT TO BUY MORE AT CURRENT LEVELS SOME OF THE HIGHEST SEEN SINCE APRIL OF LAST YEAR THE DOLLAR COULDN'T GO HIGHER ON YELTSIN BECAUSE PEOPLE WERE ALREADY LONG SAID CHRISTINE ALLGEIER A CORPORATE TRADER AT BANQUE PARIBAS IN NEW YORK AFTER FAILING TO BREAK HIGHER ON THE REPORTS FROM RUSSIA THE DOLLAR CREPT STEADILY LOWER DEALERS SAID ECONOMIC REPORTS HURT A PAIR OF DECIDEDLY MIXED US ECONOMIC REPORTS ADDED TO THE MALAISE PARTICIPANTS SAID THE COMMERCE DEPARTMENT REPORTED THAT RETAIL SALES ROSE 03 IN FEBRUARY CONTRADICTING ANALYSTS' EXPECTATIONS OF A 01 DROP BUT DEALERS NOTED THAT THE REVISION OF JANUARY'S REPORT TO UNCHANGED FROM THE ORIGINALLY REPORTED RISE OF 03 ERASED WHATEVER BULLISHNESS THE FEBRUARY RISE MIGHT HAVE CAUSED IN ADDITION THE NEWS THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE JUMPED 25000 IN THE LATEST WEEK DESPITE ANALYSTS' CALLS FOR A DROP OF 2000 DARKENED THE DOLLAR'S PROSPECTS DEALERS SAID ALL IN ALL IT STILL SHOWS THAT THE ECONOMY IS NOT OUT OF THE WOODS YET SAID BANQUE PARIBAS' MS ALLGEIER AT THE SAME TIME DEALERS SAID THE ECONOMIC NEWS WASN'T ENOUGH TO PUSH THE DOLLAR SHARPLY LOWER WHENEVER THE DOLLAR DIPS SIGNIFICANTLY SAID MS ALLGEIER THE SENTIMENT IS THESE ARE GOOD LEVELS TO BUY DOLLARS BECAUSE WE'RE STILL IN AN UPTREND FALLING GERMAN INTEREST RATES JUST AS THE US RECOVERY PICKS UP SPEED DEALERS SAID LEAD PLAYERS TO EXPECT A STRONGER DOLLAR LATER THIS YEAR AND ALTHOUGH THE DOLLAR COULDN'T TURN THURSDAY'S TENSION IN RUSSIA INTO SOLID GAINS MS ALLGEIER SAID THE SWISS FRANC WAS IDEALLY POSITIONED TO BENEFIT IN ADDITION TO ITS USUAL ATTRACTION AS A SHELTER FROM MARKET TURMOIL THE FRANC WAS JUST BEGINNING A LARGELY TECHNICAL REBOUND AGAINST THE MARK DEALERS SAID 9303120097 930312 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN THIS DIVERSIFIED INDUSTRIAL AND AEROSPACE COMPANY NAMED WILLIAM T MILLER 43 YEARS OLD TO THE POST OF PRESIDENT NORTH AMERICAN OPERATIONS FOR ITS OTIS ELEVATOR CO UNIT IN FARMINGTON CONN HE SUCCEEDS JOHN COSENTINO WHO MOVES TO OTIS HEADQUARTERS TO WORK DIRECTLY WITH J P VAN ROOY OTIS'S PRESIDENT MR MILLER MOST RECENTLY WAS DIRECTOR OF FINANCIAL PLANNING AND ANALYSIS AT UNITED TECHNOLOGIES 9303120096 930312 JAPAN'S CANON SEEKS TO EXPAND OFFERINGS IN COMPUTER MARKET PHOTO CONCERN'S SEEDS' INCLUDE NOTEBOOKS LCD SCREENS AND NEW MEMORY DEVICES BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CANON INC NO LONGER JUST A CAMERA AND COPIER COMPANY HAS AMBITIOUS PLANS TO CARVE OUT A SHARE OF THE COMPUTER MARKET THE JAPANESE COMPANY UNVEILED SOME OF ITS NEW CONCEPTS AT THE NEW YORK TECH EXPO THIS WEEK DR KEIZO YAMAJI PRESIDENT OF CANON SAID THE EXHIBIT CONTAINS A NUMBER OF SEEDS THAT MIGHT GROW INTO IMPORTANT CANON PRODUCTS FOR THE '90S AND EVEN INTO THE 21ST CENTURY PRODUCTS ON DISPLAY INCLUDE PROTOTYPES OF NOTEBOOK COMPUTERS DISPLAYS AND MEMORY TECHNOLOGY PRODUCTS IN DEVELOPMENT AND IN SOME CASES NEARING THE MARKET THE COMPANY HOPES THE COMPUTER TECHNOLOGY ALONG WITH UPGRADES OF CANON'S EXISTING PRODUCTS WILL SUPPORT CANON'S PROFITS AS THE US AND EUROPEAN ECONOMIES PULL OUT OF RECESSION AND PROFIT MARGINS IN BUSINESS MACHINE MARKETS NARROW CANON USA INC HAD 46 BILLION IN SALES IN 1992 A 12 INCREASE FROM THE PREVIOUS YEAR CANON USA PREDICTS AT LEAST A 10 INCREASE IN SALES THIS YEAR LAST YEAR CANON INC'S CONSOLIDATED RESULTS SHOWED A 31 SLIDE IN NET INCOME DUE TO CHARGES INCURRED IN SETTLING PATENT LAWSUITS IN THE US BUT DR YAMAJI SAID HE EXPECTS THAT EARNINGS WILL INCREASE DRAMATICALLY IN 1993 EVEN THOUGH EACH PRODUCT MARKET IS FACING SEVERE COMPETITION VALUEADDED PRODUCTS SUCH AS FAXESANDPRINTERS IN ONE FOR EXAMPLE MEAN BETTER PROFITS SAID HARUO MURASE EXECUTIVE VICE PRESIDENT OF SALES AT CANON USA DR YAMAJI SAID CANON'S EXPANSION INTO COMPUTERS IS THE NEXT LOGICAL STEP FOR A BUSINESS THAT ALREADY MANUFACTURES COMPUTER PERIPHERALS SUCH AS LASER AND BUBBLE JET PRINTERS CANON INTRODUCED A LINE OF DESKTOP AND LAPTOP COMPUTERS LAST OCTOBER AT THE NEW YORK TECH EXPO CANON IS LAUNCHING A NOTEBOOK COMPUTER DEVELOPED JOINTLY WITH INTERNATIONAL BUSINESS MACHINES CORP THAT FEATURES A BUILTIN BUBBLE JET PRINTER ACCORDING TO DR YAMAJI THE SYSTEM NOT ONLY IS PORTABLE BUT ALSO CUTS AVERAGE PRINTING TIME THE COMPANY PLANS TO HAVE THE COMPUTER ON THE US MARKET IN A MONTH OR SO AT WHICH TIME IT WILL SUGGEST A RETAIL PRICE THE NOTEBOOK WILL NOT TAKE OVER THE NOTEBOOK MARKET SAID AN INDUSTRY ANALYST BUT IT COULD FULFILL THE NEEDS OF A PARTICULAR SEGMENT OF MOBILE USER REQUIREMENTS NOTING THAT A SIMILAR CANONIBM NOTEBOOK COMPUTER ALREADY IS FARING WELL ON THE JAPANESE MARKET RICHARD ZWETCHKENBAUM SENIOR ANALYST FOR INTERNATIONAL DATA CORP SAID THAT WHILE THE NOTEBOOK PRINTER IS ACTUALLY SLOW COMPARED WITH STANDARD MODELS CONSUMERS WILL OVERLOOK THAT AND OTHER SHORTCOMINGS FOR THE PORTABILITY AND HIGH PRINT QUALITY THIS IS FOR PEOPLE WHO WANT TO PRINT IN A CAR IN A PLANE AT A CONSTRUCTION SITE MR ZWETCHKENBAUM SAID IF THE PRINTER AND COMPUTER ARE SEPARATE THE CLUMSINESS FACTOR IS A REAL DISADVANTAGE CANON IS BRANCHING INTO EMERGING TECHNOLOGIES THAT COULD BOOST ITS FLEDGLING COMPUTER UNIT AND ARE COMPATIBLE WITH OTHER COMPANIES' MACHINES THE COMPANY SAYS IT HAS NEW OPTICALDISK TECHNOLOGY THAT COULD RIVAL HARD DRIVES FOR MEMORY STORAGE IN COMPUTERS MAGNETOOPTICAL DISKS OR MODS RESEMBLE REGULAR COMPUTER DISKS BUT HAVE A LASER DISK INSIDE ON WHICH INFORMATION CAN BE STORED CURRENT MODS HOWEVER HAVE LESS CAPACITY THAN HARD DRIVES CURRENTLY ABOUT 130 MEGABYTES AND ACCESS INFORMATION FAR MORE SLOWLY CANON SAYS ITS NEW DISKS WILL HAVE 350 MEGABYTES AND BE ABLE TO FIND STORED MATERIAL ALMOST AS FAST AS HARD DRIVES THE COMPANY SAYS THE ADVANTAGE OF MODS IS THAT INFORMATION CAN BE STORED ON THEM FOREVER THEORETICALLY WITHOUT DEGRADING OR SCRAMBLING USERS WHO STORE FROM REGULAR HARD DRIVES TO TAPE RUN THE RISK OF SCRAMBLING INFORMATION IF THE MATERIAL IS STORED FOR YEARS WITHOUT PERIODIC USE A SPOKESMAN FOR CANON SAID THE NEW DEVICES AND DRIVES WILL HIT THE MARKET BY LATE 1994 WITH DISKS SELLING FOR 30 TO 40 AND DRIVES FOR ABOUT 1000 JAMES PORTER PRESIDENT OF THE COMPUTER MARKET RESEARCH FIRM DISK/TREND INC SAYS THAT WHILE THE ACCESS TIME FOR CANON'S NEW DISKS IS COMPETITIVE MODS HAVE GENERALLY BEEN MARKETING DISASTERS IN THE PAST WHEN AIMED AT THE BROAD PC MARKET HE SAYS CANON'S PRODUCTS WILL FARE WELL AMONG GRAPHIC DESIGNERS AND OTHERS USING COMPUTERAIDED DESIGN CANON IS ALSO ENTHUSIASTIC ABOUT ITS FERROELECTRIC LIQUID CRYSTAL DISPLAYS THIN COMPUTER SCREENS THE COMPANY SAYS REDUCE EYE STRAIN AND CONSUME LESS ENERGY THAN TRADITIONAL CATHODERAY TERMINALS CANON ALSO SAYS THE DISPLAYS OFFER HIGHER RESOLUTION IN BOTH BLACKANDWHITE AND COLOR THAN CATHODERAY DISPLAYS DR YAMAJI STRESSED HOWEVER THAT THE COMPANY REMAINS COMMITTED TO ITS CORE BUSINESSES CANON IS INTRODUCING A COLOR LASER BEAM PRINTER AND COPIER THAT CAN PRINT 30 PAGES A MINUTE UPGRADES OF CANON COPIERS THE CLC350 AND 550 MODELS WILL FEATURE AN ANTICOUNTERFEITING FEATURE THE COMPANY ANNOUNCED LAST YEAR THE COUNTERFEIT PREVENTION TECHNOLOGY PRINTS AN INVISIBLE TRACEABLE CODE ON EVERY PRINTER COPY IDENTIFYING THE SERIAL NUMBER OF THE COPIER DR YAMAJI SAID CANON HAS POISED ITSELF TO TAP INTO THE GLOBAL TEXTILES MARKET THROUGH NEW BUBBLE JET TECHNOLOGY THAT PERMITS COLOR PRINTING ON FABRIC THE TECHNOLOGY SO FAR IS ONLY AVAILABLE IN JAPAN 9303120095 930312 FUNDS APPARENTLY USED IN THE BOMBING TRADE CENTER WERE SENT FROM EUROPE BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TENS OF THOUSANDS OF DOLLARS APPARENTLY USED TO FINANCE THE WORLD TRADE CENTER BOMBING WERE TRANSFERRED FROM A EUROPEAN NATION TO A BANK BRANCH IN JERSEY CITY NJ INVESTIGATORS SAID AT THE NATIONAL WESTMINSTER BANK NJ BRANCH A SUBSIDIARY OF NATIONAL WESTMINSTER BANK PLC OF LONDON A MANAGER SAID THE FEDERAL BUREAU OF INVESTIGATION HAD SUBPOENAED DOCUMENTS HE ADDED THAT FBI AGENTS ARE BUSY GOING THROUGH THE FILES THE FBI HOPES TO TRACE THE FUNDS BACK THROUGH EUROPE TO THEIR SOURCE ONE INVESTIGATOR SAID THAT IF A COOPERATIVE EUROPEAN COUNTRY IS INVOLVED IT MIGHT TAKE ONLY A COUPLE OF DAYS BUT IF A LESS COOPERATIVE COUNTRY IS INVOLVED IT COULD TAKE A WEEK OR 10 DAYS IN GENERAL BRITISH AUTHORITIES ARE USUALLY QUICK TO COOPERATE WITH US INVESTIGATORS WHILE AUTHORITIES IN SOME OTHER COUNTRIES SUCH AS FRANCE ARE OFTEN MORE RELUCTANT THE INVESTIGATOR DECLINED TO NAME THE EUROPEAN COUNTRY INVOLVED THE FUNDS WERE DEPOSITED IN A CHECKING ACCOUNT HELD JOINTLY BY NIDAL A AYYAD A KUWAITIBORN CHEMICAL ENGINEER WHO HAD BEEN WORKING AT ALLIEDSIGNAL INC AND BY MOHAMMED SALAMEH BOTH OF WHOM HAVE BEEN ARRESTED AND CHARGED WITH AIDING IN THE FEB 26 BOMBING THAT KILLED AT LEAST FIVE PEOPLE ALTHOUGH BOTH HAVE LIVED IN THE US FOR A NUMBER OF YEARS THEIR FAMILIES ORIGINALLY COME FROM THE ISRAELIOCCUPIED WEST BANK THE INVESTIGATOR SAID THE FUNDS WERE SENT IN A SERIES OF MONEY TRANSFERS OVER A PERIOD OF SEVERAL MONTHS THE INVESTIGATOR ADDED THAT THERE'S SOME INDICATION THAT THE FUNDS WERE DELIBERATELY SENT IN AMOUNTS OF LESS THAN 10000 WHICH WOULD AVOID A RULE REQUIRING BANKS TO REPORT TRANSFERS OF THAT AMOUNT OR MORE TO THE US TREASURY YESTERDAY THE NEW YORK TIMES REPORTED THAT ONE TRANSFER TO THE ACCOUNT AMOUNTED TO 8000 THE FBI ALSO IS INVESTIGATING OTHER BANK ACCOUNTS HELD BY THE TWO MEN IN SOME CASES JOINT ACCOUNTS WITH STILL OTHER INDIVIDUALS IT'S UNDERSTOOD THAT THE SEARCH OF MR AYYAD'S HOUSE WHEN HE WAS ARRESTED WEDNESDAY MORNING YIELDED NUMEROUS FINANCIAL RECORDS INCLUDING BANK ACCOUNT RECORDS AND CREDIT CARD RECORDS WHICH HAVE PROVIDED FRESH LEADS IN THE CASE BANK ACCOUNT RECORDS AND CREDIT CARDS LEAVE A LOT OF FOOTPRINTS TO FOLLOW ONE INVESTIGATOR SAID ATTEMPTS TO TRACE FUNDS FLOWING IN AND OUT OF THE JOINT ACCOUNT HELD BY MR AYYAD AND MR SALAMEH BEGAN ONLY AFTER MR AYYAD'S ARREST WE DIDN'T WANT TO TIP OUR HAND BEFORE THE ARREST ONE INVESTIGATOR SAID WE DIDN'T WANT TO GO INTO THE BANK AND HAVE SOME OFFICER CALL THESE GUYS UP AND ASK THEM WHY THE FBI IS GOING THROUGH THEIR ACCOUNTS THE FUNDS TRANSFERRED FROM EUROPE TO JERSEY CITY APPARENTLY WERE USED TO BUY CHEMICALS AND OTHER BOMBMAKING EQUIPMENT AND TO RENT CARS AND A VAN WHICH CARRIED THE BOMB TO THE WORLD TRADE CENTER GARAGE WHETHER THE FUNDS WERE ALSO USED TO FINANCE TRAVEL OVERSEAS BY SUSPECTS ISN'T KNOWN FBI AGENTS BELIEVE ABOUT HALF A DOZEN MEN IN THE NEW YORK AREA WERE INVOLVED IN THE BOMBING PLOT AND AN UNKNOWN NUMBER OVERSEAS ONE REASON INVESTIGATORS AREN'T DISCLOSING THE EUROPEAN NATION WHERE THE FUNDS ORIGINATED IS THAT THE FBI HOPES TO GET THERE BEFORE THE PRESS IN SEVERAL INSTANCES THE INVESTIGATION HAS BEEN HAMPERED BY DISCLOSURES IN THE PRESS THAT COULD HAVE TIPPED OFF THE SUSPECTS THAT FEDERAL AGENTS WERE ON THEIR TRAIL 9303120094 930312 DOFASCO TO BUILD MINIMILL IN US WITH COSTEEL INC BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL DOFASCO INC SAID IT PLANS TO BUILD A US380 MILLION FLATROLLED STEEL MINIMILL IN THE US WITH COSTEEL INC THE DECISION MARKS DOFASCO'S EMERGENCE FROM A PAINFUL AND COSTLY RESTRUCTURING PROCESS DOFASCO CANADA'S LARGEST STEELMAKER HAS BEEN DISCUSSING THE CONSTRUCTION OF SUCH A MINIMILL FOR ABOUT A YEAR BUT THE DECISION TO BUILD IT IN THE US WHERE DOFASCO CAN TAKE ADVANTAGE OF LOWER OPERATING COSTS AND THE READY AVAILABILITY OF RAW MATERIALS LIKELY WILL FUEL A CANADIAN POLITICAL QUARREL OVER GOVERNMENT POLICIES THAT SOME PEOPLE CONTEND SCARE OFF NEW INVESTMENT AND DRIVE AWAY EXISTING BUSINESSES FOR EXAMPLE ONTARIO INDUSTRIES HAVE BEEN IN AN UPROAR OVER THE SOARING COST OF POWER SUPPLIED BY ONTARIO HYDRO OWNED BY THE PROVINCIAL GOVERNMENT ONTARIO HYDRO UNTIL RECENTLY PROVIDED THE PROVINCE WITH SOME OF THE CHEAPEST ELECTRICITY IN NORTH AMERICA MAKING ONTARIO INDUSTRY HIGHLY COMPETITIVE WHILE THE UTILITY HOPES TO CURTAIL FUTURE RATE INCREASES POWER RATES FOR MANY USERS HAVE RISEN MORE THAN 30 OVER THE PAST THREE YEARS A DOFASCO SPOKESMAN ACKNOWLEDGED THAT LOWER POWER COSTS IN THE US WERE A FACTOR IN THE MINIMILL DECISION BUT HE SAID THE KEY REASONS FOR LOCATING IN THE US ARE THE SMALL SIZE OF THE CANADIAN STEEL MARKET AND THE LACK OF SUFFICIENT SCRAP METAL TO SUPPLY THE MINIMILL GARY CARR A MEMBER OF ONTARIO'S PROGRESSIVE CONSERVATIVE OPPOSITION PARTY SAID DOFASCO'S DECISION TO BUILD THE MINIMILL IN THE US SHOWS THAT MANY COMPANIES ARE NOT LOOKING TO ONTARIO FOR FUTURE INVESTMENT HE SAID HE PLANS TO CITE DOFASCO'S MOVE AS AN EXAMPLE OF THAT TREND IN PARTY LITERATURE AND THE PROVINCIAL GOVERNMENT LEGISLATURE MR CARR BLAMES THE ONTARIO GOVERNMENT'S HIGH TAXES OVERREGULATION AND OTHER POLICIES FOR DRIVING AWAY INVESTMENT IN THE PROVINCE BUT PETER BARNES DEPUTY MINISTER OF ECONOMIC DEVELOPMENT AND TRADE FOR THE PROVINCE CONTENDS THAT DOFASCO'S DECISION IS UNRELATED TO THESE ISSUES AND THAT ONTARIO PLANS TO REMAIN COMPETITIVE IN AREAS SUCH AS TAXATION AND POWER RATES THE DOFASCO AND COSTEEL VENTURE TO BE IN OHIO KENTUCKY OR PENNSYLVANIA IS THE LATEST MOVE IN A RUSH TO BUILD FLATROLLED MINIMILLS WHICH BECAUSE OF THEIR LOW COSTS POSE AN INCREASING THREAT TO TRADITIONAL INTEGRATED PRODUCERS NUCOR CORP WHICH OPENED THE FIRST TWO MILLS OF THIS KIND IN RECENT YEARS PLANS A THIRD WITH OREGON STEEL MILLS INC IN THE PACIFIC NORTHWEST BIRMINGHAM STEEL CORP PLANS TO OPEN A SIMILAR MILL THIS WILL BE THE FIRST MINIMILL IN WHICH DOFASCO HAS AN INTEREST THE HAMILTON ONTARIO STEELMAKER IS ONLY NOW EMERGING FROM A TWOYEARLONG RESTRUCTURING PROCESS DURING WHICH IT RECORDED MORE THAN ONE BILLION CANADIAN DOLLARS US8029 MILLION IN CHARGES AND WRITEDOWNS ELIMINATED THOUSANDS OF JOBS AND SOLD OFF OR SHUT DOWN A VARIETY OF OPERATIONS IN CONTRAST TORONTOBASED COSTEEL HAS ESCAPED THE RECESSION LARGELY UNSCATHED THANKS TO THE USE OF NEW TECHNOLOGIES AND THE DIVERSIFICATION OF ITS SPECIALTY STEEL MARKETS DANA MILBANK CONTRIBUTED TO THIS ARTICLE 9303120093 930312 BUSINESS BRIEF TYCO TOYS INC YEH SELLS SHARES CUTTING HIS STAKE TO 22 FROM 66 DAVID CW YEH CUT HIS STAKE IN TYCO TOYS INC TO 22 FROM 66 BY SELLING MOST OF THE STOCK HE ACQUIRED WHEN HE SOLD HIS 60OWNED UNIVERSAL MATCHBOX GROUP LTD IN OCTOBER MR YEH OF HONG KONG REPORTED TO THE SECURITIES AND EXCHANGE COMMISSION THAT HE HAD SOLD 1135481 SHARES OF TYCO AT PRICES BETWEEN 1225 AND 13125 A SHARE HE NOW HOLDS 695598 TYCO SHARES TYCO BASED IN MT LAUREL NJ BOUGHT MATCHBOX A MAKER OF TOY DIECAST METAL VEHICLES FOR 107 MILLION HALF IN CASH AND HALF IN TYCO STOCK 9303120092 930312 CORPORATE FOCUS GENERAL CINEMA'S MAKEOVER SEEMS A TEXTBOOK SUCCESS PLANNED NAME CHANGE SHOWS IMPORTANCE OF PROFITS FROM PUBLISHING LINES BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL NEWTON MASS FOR MUCH OF THEIR CAREERS RICHARD A SMITH AND ROBERT J TARR HAVE HAD REASON TO BE HAPPY ABOUT KIDS WHO SPEND A LOT OF TIMEAND MONEYAT THE MOVIES AND SHOPPING MALLS BUT NOW THE TOP TWO MEN AT GENERAL CINEMA CORP SAY THEY LIKE NOTHING BETTER THAN WHEN A YOUNG PERSON HITS THE BOOKS THEIR BOOKS IN AN UNUSUAL TRANSFORMATION GENERAL CINEMA HAS MADE ITSELF OVER INTO A COMPANY DRIVEN BY PUBLISHING AFTER YEARS IN MOVIE EXHIBITION SPECIALTY RETAILING AND SOFTDRINK BOTTLING TO CEMENT ITS NEW IDENTITY IN THE MINDS OF INVESTORS AND CUSTOMERS THE COMPANY WILL ANNOUNCE TODAY THAT IT IS CHANGING ITS NAME TO HARCOURT GENERAL INC TAKING ON THE WELLKNOWN MONIKER OF ITS HARCOURT BRACE PUBLISHING UNIT HARCOURT BRACE WAS ACQUIRED FOR 14 BILLION IN CASH SHARES AND ASSUMED DEBT IN NOVEMBER 1991 PUBLISHING IS GOING TO BE OUR CORE BUSINESS FOR A LONG LONG TIME SAYS MR SMITH HARCOURT GENERAL'S CHAIRMAN AND CONTROLLING SHAREHOLDER IT'S GOING TO BE OUR GROWTH INDUSTRY FOR THE '90S STRIPPED OF ITS HIGHCOST DEBT BY THE TAKEOVER HARCOURT BRACE HAS IN FACT BECOME THE BIG CASH PRODUCER THAT MESSRS SMITH AND TARR PROMISED IT WOULD IT GENERATED 1484 MILLION IN OPERATING PROFIT IN THE COMPANY'S LATEST YEAR ENDED OCT 31 OR 52 OF THE TOTAL ON ONLY 26 OF THE COMPANY'S 372 BILLION IN REVENUE THE NEW PICTURE HAS PLAYED WELL ON WALL STREET WHERE GENERAL CINEMA'S SHARES HAVE ROUGHLY DOUBLED TO 3575 SINCE THE MERGER AT THEIR SUBURBAN BOSTON OFFICES ABOVE A GENERAL CINEMA MULTIPLEX THE USUALLY INACCESSIBLE MESSRS SMITH AND TARR CONDUCTED A REVIEW OF THEIR OPERATING UNITS ON THE EVE OF THEIR ANNUAL MEETING TODAY AS NEW CAPITAL 239 MILLION THIS YEAR AND LAST IS POURED INTO PUBLISHING UNITS THAT WERE PREVIOUSLY CASHTIGHT WE WILL REGAIN IN BIG GULPS THE MARKET SHARE WE LOST PREDICTS MR TARR CHIEF EXECUTIVE OFFICER RELYING ON TRADEGROUP PROJECTIONS HE ALSO FORECASTS GROWTH IN TEXTBOOK SALES OF 4 TO 5 ANNUALLY THROUGH 1996 WITH HARCOURT UP 8 TO 10 A YEAR ALTHOUGH HARCOURT HAS HIGH HOPES IT FACES MAJOR POTENTIAL CONSTRAINTS IN TEXTBOOKS STATE AND LOCAL BUDGETS WHICH SUPPLY 94 OF SCHOOL SPENDING ARE EXTREMELY TIGHT A SITUATION THAT HELPED KEEP 1992 TEXTBOOK SALES FLAT INDUSTRYWIDE AFTER ADJUSTING FOR INFLATION MORE TEACHERS ESPECIALLY IN LOWER GRADES ESCHEW TEXTBOOKS IN FAVOR OF MATERIALS THAT THEY DEVELOP OR ACQUIRE THEMSELVES ON THE COLLEGE LEVEL BOOK SHARING PHOTOCOPYING AND A ROBUST USEDBOOK MARKET ARE KEEPING GROWTH DOWN AND HARCOURT IS NOT A MAJOR PLAYER IN ONE STRONG AREA EDUCATIONAL SOFTWARE BUT SALES OF NEW HARCOURT READING AND MATHEMATICS TEXTBOOKS HAVE ALREADY EXCEEDED EXPECTATIONS MR TARR SAYS RESULTING IN MARKETSHARE GAINS THE ECONOMY'S STRENGTH MEANWHILE HAS BOOSTED SALES AT THE COMPANY'S 65OWNED NEIMAN MARCUS GROUP UNIT ANNUITY SALES AND INVESTMENT RETURNS ARE UP IN THE HARCOURT INSURANCE UNIT AND A CROP OF POPULAR MOVIES HAS IMPROVED BOXOFFICE RECEIPTS AT THE 1400 GENERAL CINEMA SCREENS WHAT'S GREAT ABOUT THIS BUSINESS IS THAT THERE ARE SO MANY LEVERS TO PULL TO BOOST PROFITS SAYS MR TARR AFTER YEARS OF BEING KNOWN AS DEALMAKERS MESSRS SMITH AND TARR ARE AT PAINS TO STRESS THAT IMPROVING OPERATING RESULTS IS NOW THEIR MAIN PRIORITY BUT THE ACQUISITION ITCH ISN'T COMPLETELY GONE THEY SAY THEY ARE MULLING A BID FOR SOME OF THE ASSETS OF THE MACMILLAN PUBLISHING EMPIRE WHICH ARE TO BE OFFERED BY BANKRUPTCYCOURT TRUSTEES IN AN AUCTION EXPECTED TO ATTRACT WIDE PUBLISHINGINDUSTRY INTEREST THEY ALSO SAY THEY ARE INTERESTED IN SMALL PUBLISHING ACQUISITIONS IN THE 10 MILLION TO 20 MILLION RANGE IN TEXAS WHERE SCHOOLS WILL BUY 120 MILLION TO 150 MILLION IN READING TEXTBOOKS THIS YEAR MR TARR SAYS THAT HARCOURT IS WINNING BIG ALTHOUGH THE COMPANY WASN'T A FACTOR IN THE STATE'S LAST READING PURCHASE IN 1987 THE HEAD OF ANOTHER PUBLISHING COMPANY WHO ASKED NOT TO BE NAMED SUPPORTS MR TARR SAYING HARCOURT IS LEADING THE PACK AND COULD GET 50 OF THE TEXAS MARKET WITH ITS NEW TREASURY OF LITERATURE SERIES THE DALLAS SCHOOL DISTRICT ONE OF THE BIGGEST IN THE STATE CHOSE TREASURY LAST MONTH THEY REALLY CAUGHT THE DRIFT OF THE MARKET SAYS MARLOWE TEIG MANAGING DIRECTOR OF BERKERY NOYES & CO A BOSTON INVESTMENT BANKING CONCERN IN THE PUBLISHING FIELD MR TEIG ALSO FORECASTS A 50 TEXAS READING SHARE FOR HARCOURT HE SAYS THAT AFTER BEING OUT OF TUNE WITH TRENDS FOR A WHILE HARCOURT DID A BANGUP JOB WITH TREASURY CREATING BOOKS IN SYNC WITH THE WHOLE LANGUAGE MOVEMENT WHICH FAVORS LESS ABRIDGEMENT AND PHONICS AND MORE CLASSIC TALES WITH THE LOOK OF POPULAR CHILDREN'S BOOKS HARCOURT ALSO CLAIMS TO HAVE GAINED THE NO 1 POSITION NATIONALLY IN ELEMENTARY MATHEMATICS SALES WITH ITS MATHEMATICS PLUS BOOKS WARREN STONE CHAIRMAN AND CHIEF EXECUTIVE OF ADDISONWESLEY PUBLISHING CO WHICH IS PERENNIALLY ONE OF THE STRONGEST MATH SELLERS CONCEDES THAT HARCOURT DID WELL LAST YEAR AND MAY HAVE GAINED THE TOP SALES POSITION BUT HE SAYS THAT 1992 WASN'T A BIG YEAR IN MATH SALES WITH NO MAJOR STATES PURCHASING ADDING IT ALL UP MR TARR SAYS HARCOURT BRACE HAS REGAINED A DOUBLEDIGIT MARKET SHARE IN TEXTBOOK SALES AFTER DIPPING BELOW 10 IN RECENT YEARS THE COMPANY SAYS IT SOLD 450 MILLION OF TEXTBOOKS AND TESTS LAST YEAR ABOUT 107 OF THE 419 BILLION IN SALES ESTIMATED FOR THOSE PRODUCTS BY THE AMERICAN ASSOCIATION OF PUBLISHERS IN AN INDUSTRY OF ABOUT 10 TO 12 BIG PLAYERS PARAMOUNT COMMUNICATIONS INC IS THE INDUSTRY LEADER IN SCHOOLS AND COLLEGES ACCORDING TO EDUCATIONAL MARKETER NEWSLETTER WITH ABOUT 770 MILLION IN SALES MR TARR SAYS BETTER FINANCES HAVE ALLOWED HARCOURT TO SIGN SEVERAL NEW COLLEGE TEXTBOOK AUTHORS AIDING A BID TO EXPAND MARKET SHARE IN SUBJECT AREAS INCLUDING ECONOMICS AND PSYCHOLOGY HARCOURT HAS ALSO STARTED A NEW IMPRINT FOR COLLEGE PAPERBACKS DISCOUNTED BY AS MUCH AS 50 FROM HARDCOVER PRICES IN RESPONSE TO FIERCE COMPETITION FROM USEDBOOK SALES HARCOURT'S WB SAUNDERS MEDICAL PUBLISHING UNIT HAS EXPANDED ITS LIST OF TEXTBOOKS IN NURSING AND ALLIED HEALTH FIELDS WHERE ENROLLMENTS ARE GROWING FAST AT ITS ANNUAL MEETING TODAY THE COMPANY WILL SHARE THE OPTIMISTIC INDUSTRY PROJECTIONS FOR TEXTBOOK SALES BASED MAINLY ON ASSUMPTIONS OF BIGGER ENROLLMENTS AND SCHEDULED PURCHASES IN MAJOR STATES BUT MESSRS TARR AND SMITH SAY THEY ALSO SEE IMPROVED FEDERAL FUNDING PROSPECTS AFTER YEARS OF SELLING ENTERTAINMENT MR SMITH SOUNDS LIKE A SCHOOL REFORMER WHEN HE TALKS ABOUT EDUCATION AS A HIGHER NATIONAL PRIORITY THAN IN THE PAST 9303120091 930312 HE HAS WILD ANSWERS IF ANYONE STARTS TO ASK WHERE'S THE BEEF' BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL TIRED OF THE SURF TURF AND MYSTERY MEAT THAT GETS SHOVELED UP AT CONFERENCES TRY THIS WEEKEND'S MIDATLANTIC ALTERNATIVE ANIMAL CONFERENCE IN SCHNECKSVILLE PA FOR ELK MEATBALLS AND ITALIANSEASONED DOVE THE CONFERENCE IS BEING HELD TO HELP PERSUADE BEEF AND CHICKEN FARMERS TO GO EXOTIC AND STOCK THEIR FIELDS WITH LLAMAS OSTRICHES EMUS AND CAVIES GUINEA PIGS ALONG WITH UNTRADITIONAL FEASTS THE CONFERENCE OFFERS BASIC LIVESTOCK TIPS FOR EXAMPLE SMALL FENCES CAN CONTAIN CHICKENS AND COWS BUT BUFFALO AND ELK REQUIRE WIRE FENCES AT LEAST SIX OR SEVEN FEET HIGH SAYS ROBERT MICKEL WHO IS HELPING ORGANIZE THE EVENT FOR THE COOPERATIVE EXTENSION PROGRAMS OF PENNSYLVANIA STATE AND RUTGERS UNIVERSITIES CONFERENCE MARKETING TIPS WILL INCLUDE INFORMATION ON HOW TO ADVERTISE OSTRICH EGGS IN SUCH MAGAZINES AS ALTERNATIVE BREEDS FERTILIZED OSTRICH EGGS GO FOR 1000 EACH OR HOW TO SELL ELK MEAT TO SPECIALTY RESTAURANTS INCLUDING THOSE THAT MAY WANT TO MAKE APHRODISIAC SOUP STOCK FROM ELK ANTLERS THE BIGGEST QUESTION ON FARMERS' MINDS IS WHETHER CONSUMERS OR FOOD PROCESSORS ARE GAME SO TO SPEAK THUS MR MICKEL THE COOK FOR THE EVENT IS SLAVING AWAY IN THE KITCHEN PUTTING ELK IN FAVORITE HOMESTYLE DISHES THE NOVELTY MEATS ARE GOING TO HAVE A DIFFERENT FLAVOR HE WARNS BUT THEY CAN BE SPICED IN TRADITIONAL FASHION MR MICKEL ALSO FIGURES THAT ELK DOVE RABBIT AND SUCH WILL APPEAL TO THE DIETCONSCIOUS BECAUSE THEY CONTAIN LESS FAT THAN SAY HAMBURGERS I JUST TOOK THE LID OFF THE ELK MEATBALLS AND THERE'S NO FAT OR ANYTHING LEFT IN THE COOKING HE SAYS PROUDLY AN ANIMALRIGHTS GROUP PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS WHICH DEPLORES EATING ANY ANIMAL POOHPOOHS THE LOWFAT ARGUMENT YOU CAN'T TAKE CHOLESTEROL OUT OF ANY ANIMAL SAYS ROBIN WALKER THE GROUP'S VEGETARIANCAMPAIGN COORDINATOR MS WALKER IS ESPECIALLY APPALLED AT THE IDEA THAT ANYONE COULD EAT A GUINEA PIG MR MICKEL SAYS THAT WHILE CAVIES ARE CITED ON CONFERENCE BROCHURES THEY AREN'T ON THE MENU AS IT TURNS OUT THE DISHES AREN'T EXACTLY FREE OF FAT WORKING FEVERISHLY IN THE KITCHEN YESTERDAY MR MICKEL SLATHERED BUTTER ON HIS DOVES AND FOR THOSE WHO WANT AN EVEN RICHER FEAST MR MICKEL IS SERVING DOVES GLAZED WITH BUTTER BROWN SUGAR AND HONEY 9303120090 930312 IBM COMPAQ GET INTO COUNTING FEUD OVER EUROPEAN SALES RUSH TO TOUT STATUS AS NO 1 IN A SEGMENT FOR ONE MONTH ON INITIAL DATA CREATES FUSS BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SOMETIMES THE COMPUTER INDUSTRY GETS CARRIED AWAY WITH ITS OWN HYPERBOLE AS EVIDENCED BY A PUBLIC SPAT IN EUROPE BETWEEN INTERNATIONAL BUSINESS MACHINES CORP AND ARCHRIVAL COMPAQ COMPUTER CORP OVER ONE BURNING QUESTION WHICH COMPANY SELLS THE MOST PERSONAL COMPUTERS TO EUROPEAN BUSINESSES AT A NEWS CONFERENCE LAST MONTH COMPAQ EXECUTIVES CROWED ABOUT MARKET RESEARCH SUGGESTING THEY HAD WRESTED THE TITLE FROM IBM IN THE THIRD QUARTER OF 1992 BUT EARLIER THIS MONTH IBM STRUCK BACK AS AN EXECUTIVE CALLED COMPAQ'S CLAIM MISLEADING WILLIAM MCCRACKEN HEAD OF IBM'S EUROPEAN PC BUSINESS TOLD A GATHERING OF INDUSTRY ANALYSTS THAT COMPAQ ONLY CAME CLOSE TO IBM IN THE THIRD QUARTER AND WAS FAR BEHIND IBM IN THE FOURTH QUARTER I'VE BEEN GETTING A LOT OF QUESTIONS ON IT THE COMPAQ CLAIM AND THE NOISE LEVEL IS SUCH THAT I THOUGHT IT WAS NECESSARY TO SPEAK OUT EXPLAINS MR MCCRACKEN IN AN INTERVIEW MERE MORTALS OUTSIDE THE COMPUTER INDUSTRY MIGHT WELL WONDER WHAT ALL THE FUSS IS ABOUT BOTH COMPANIES HAVE LONG LED THE EUROPEAN MARKET FOR BUSINESS PCS AND NOBODY WOULD EXPECT A BOXCOUNTING ARGUMENT TO SWAY HARDNOSED CORPORATE COMPUTER BUYERS BUT INSIDE IBM AND COMPAQ RIVALRY IS AS INTENSE AS THAT BETWEEN COKE AND PEPSI AND IN THE PC INDUSTRY ESTIMATES OF MARKET SHARE ARE AS CLOSELY WATCHED AS AUDIENCE RATINGS AMONG TELEVISION BROADCASTERS THE BRITISH SUBSIDIARY OF ITALY'S ING C OLIVETTI & CO RECENTLY ISSUED A NEWS RELEASE TO TRUMPET NOT THAT IT WAS BIGGEST BUT MERELY THAT IT GREW FASTER THAN IBM COMPAQ AND APPLE COMPUTER INC IN ONE SEGMENT OF THE UK PERSONALCOMPUTER MARKET DURING TWO MONTHS JUST EVALUATING THE COMPETING IBM AND COMPAQ CLAIMS REQUIRES A PC OF ANY BRAND THE DISPUTE BEGAN AT A LONDON NEWS CONFERENCE FEB 9 WHEN COMPAQ'S EUROPEAN BOSS ANDREAS BARTH DISPLAYED A PIE CHART SHOWING IT HELD 103 OF THE EUROPEAN MARKET FOR BUSINESS AND OTHER PROFESSIONAL PCS IN THE THIRD QUARTER COMPARED WITH IBM'S 93 THE CHART CITED AS ITS SOURCE DATAQUEST INC A DUN & BRADSTREET CORP UNIT THAT IS ONE OF THE BIGGEST CONSULTING FIRMS THAT RESEARCH THE EUROPEAN COMPUTER MARKET PLEASED WITH ITS NEW NO 1 STATUS AFTER YEARS OF TRAILING IBM COMPAQ INCLUDED THE CLAIM IN A NEWS RELEASE AND AT LEAST ONE MAGAZINE AD A COMPAQ SPOKESWOMAN CONFIRMS THAT THE NEW NUMBERS REINSTATE IBM'S TITLE BUT SHE DEFENDS HER COMPANY'S EARLIER CLAIM AS BASED ON THE MOST UPTODATE FIGURES AVAILABLE AT THE TIME SHE SAYS COMPAQ DIDN'T RECEIVE THE NEW DATAQUEST NUMBERS UNTIL FEB 15 SIX DAYS AFTER THE LONDON NEWS CONFERENCE 9303120089 930312 LOPEZ CHIEF OF PURCHASING IS LEAVING GM FIRM'S COSTCUTTING DRIVE CALLED INTO QUESTION MOVE TO VW EXPECTED BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT J IGNACIO LOPEZ DE ARRIORTUA GENERAL MOTORS CORP'S CONTROVERSIAL COSTCUTTING PURCHASING CZAR IS LEAVING HIS POST AT GM AND PROBABLY WILL ASSUME A POSITION AT VOLKSWAGEN AG MR LOPEZ A SPANIARD WHO HAS BEEN IN CHARGE OF 50 BILLION OF WORLDWIDE PURCHASING AT GM SINCE MAY YESTERDAY TOLD HIS STAFF AND JOHN F SMITH JR GM'S PRESIDENT OF HIS DECISION TO LEAVE THE COMPANY HIS DEPARTURE RAISES QUESTIONS ABOUT WHETHER GM WILL BE ABLE TO CONTINUE WITH HIS COSTCUTTING EFFORTS ALTHOUGH COMPANY OFFICIALS VOWED THAT IT WOULD MR LOPEZ 52 YEARS OLD HAD BEEN OFFERED AND ONCE REJECTED A TOP POST AT VOLKSWAGEN BUT AFTER MR LOPEZ PARLAYED THAT OFFER INTO A PROMOTION TO GROUP VICE PRESIDENT AT GM VW PERSISTED AND MADE HIM ANOTHER OFFER WHICH MR LOPEZ APPEARS POISED TO ACCEPT THE GERMAN AUTO MAKER IS EXPECTED TO ANNOUNCE AT A SUPERVISORY BOARD MEETING TUESDAY THAT MR LOPEZ WILL BE JOINING VW AS PART OF A RESTRUCTURING THERE GM'S ANNOUNCEMENT WHICH CAME AFTER WEEKS OF RUMORS ABOUT MR LOPEZ'S IMPENDING DEPARTURE DIDN'T SAY WHAT HE WILL DO NEXT AND MR LOPEZ HIMSELF WASN'T AVAILABLE TO COMMENT MR SMITH SAID GM WILL CONTINUE ON MR LOPEZ'S COSTCUTTING COURSE AS HE DEPARTS THE TEAM AND THE PROCESS REMAIN INTACT AND GIVE US THE ASSURANCE OF HAVING CONTINUING BENEFITS OF THIS ONGOING PROCESS THROUGHOUT GM'S WORLDWIDE OPERATIONS BUT SOME BELIEVE THAT MR LOPEZ'S ICONOCLASTIC APPROACH WAS AS IMPORTANT AS HIS COSTCUTTING METHODS THE ISSUE IS PROBABLY WHETHER THE SPIRIT OF LOPEZ CAN CONTINUE SAYS DOUG KEVORKIAN AN ANALYST WITH JD POWER AND ASSOCIATES IT'S A SPIRIT VOLKSWAGEN ONE OF THE HIGHESTCOST MASS PRODUCERS OF AUTOMOBILES BADLY NEEDS FERDINAND PIECH WHO TOOK OVER AS VW CHAIRMAN IN JANUARY REPORTEDLY ENTICED MR LOPEZ TO VW WITH OFFERS OF A BOARD SEAT AND SWEEPING POWER TO IMPLEMENT HIS COSTCUTTING METHODS MORE THAN ANY OTHER INDIVIDUAL MR LOPEZ DREW THE FIRE FOR TOUGH AND UNPOPULAR COSTCUTTING MOVES AT GM IN PART THAT'S BECAUSE HE PLAYED THE ROLE OF AN OUTLANDISH OUTSIDER WHO SEEMED TO PERSONIFY THE NEED FOR SUDDEN URGENT CHANGE AT GM AT HIS DIRECTION GM PURCHASING AGENTS TORE UP CONTRACTS GRANTED TO AUTOPARTS MAKERS AND ASKED THE PARTS MAKERS FOR DOUBLEDIGIT PRICE CUTS IN SOME CASES PARTS MAKERS WHO DEVELOPED NEW PRODUCTS OR PROCESSES FOUND THEIR IDEAS DISTRIBUTED TO COMPETITORS WHO WERE ASKED TO ENTER COMPETING BIDS PARTS SUPPLIERS COMPLAINED BITTERLY THOUGH FEW WOULD DO SO PUBLICLY FOR RISK OF OFFENDING MR LOPEZ MR LOPEZ COMBINED THIS HARDNOSED APPROACH WITH A FLAMBOYANT PERSONAL STYLE HE WARNED OF THE DECLINE OF AMERICAN CIVILIZATION CASTIGATED EXECUTIVES FOR PLAYING GOLF AND EATING FRENCH FRIES AND HAD GM EXECUTIVES SWITCH TO WEARING THEIR WATCHES ON THEIR RIGHT HANDS UNTIL THE COMPANY STEMS ITS RED INK AND MAKES RECORD PROFITS HE ALSO ISSUED A 44PAGE HEALTH BOOKLET WHICH HE WROTE HIMSELF TITLED FEEDING THE WARRIOR SPIRIT THE BOOKLET ADVISED HIS PURCHASING AGENTS TO EAT FRUIT AND ESCHEW MEAT SANDWICHES MR LOPEZ ARGUED THAT HIS COSTCUTTING PROCESS KNOWN AS PICOS FOR PURCHASED INPUT CONCEPT OPTIMIZATION WITH SUPPLIERS WOULD EVENTUALLY MAKE GM'S NORTH AMERICAN FACTORIES AND SUPPLIERS AS EFFICIENT AS THOSE OF JAPAN'S TOYOTA MOTOR CORP MR LOPEZ DEVELOPED HIS APPROACH AT GM EUROPE WHERE HE ELIMINATED A LAYER OF MIDDLEMEN SO GM COULD DEAL DIRECTLY WITH SUPPLIERS HE ALSO BROKE UP A GROUP OF ENTRENCHED GERMAN SUPPLIERS BY SHIFTING BUSINESS TO OTHERS OUTSIDE GERMANY OFFERING BETTER QUALITY AT LOWER PRICES RUMORS OF MR LOPEZ'S IMPENDING DEPARTURE FROM GM HAVE SWIRLED SINCE AT LEAST FEB 15 WHEN THE GERMAN NEWSWEEKLY DER SPEIGEL PUBLISHED A REPORT THAT VW HAD DECIDED TO HIRE HIM IN RESPONSE THE SPANIARD SEEMED TO DENY THE REPORT SAYING I'M HERE I'M HAPPY AT GM BUT MORE THAN ONCE WHEN PRESSED ABOUT HIS PLANS HE KEPT THE EXIT DOOR OPEN SAYING I'M NO PROPHET I'M ONLY A WORKER GM CLEARLY WANTED MR LOPEZ TO STAY AS HIS RECENT PROMOTION TO GROUP VICE PRESIDENT INDICATED BUT RECENTLY TOP GM EXECUTIVES SEEMED TO BACK AWAY FROM MR LOPEZ AND BEGAN EMPHASIZING THAT THE PICOS COSTCUTTING PROCESS WAS IMPORTANT NOT MR LOPEZ GM EXECUTIVES ALSO PRIVATELY ACKNOWLEDGED GROWING IMPATIENCE WITH MR LOPEZ SAYING HE SHOULD EITHER LEAVE OR FLATLY STATE THAT HE INTENDED TO REMAIN WITH GM NO SUCCESSOR TO MR LOPEZ HAS BEEN NAMED BUT AMONG THOSE MENTIONED FOR ASSUMING AT LEAST PART OF HIS DUTIES ARE ALAN G PERRITON HIS TOP DEPUTY ROBERT HENDRIE THE FINANCE CHIEF FOR GM'S NORTH AMERICAN OPERATIONS AND A VETERAN OF THE COMPANY'S CALIFORNIA JOINT VENTURE WITH TOYOTA AND ROY S ROBERTS A VETERAN GM MANUFACTURING MAN WHO NOW HEADS THE COMPANY'S GMC TRUCK DIVISION 9303120088 930312 POLITICS & POLICY CLINTON WANTS TO BROADEN FEDERAL FIGHT AGAINST CRIME BUT STRATEGY HAS CRITICS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EGGED ON BY PRESIDENT CLINTON CONGRESS IS POISED TO MAKE STILL MORE VIOLENT CRIMES FEDERAL OFFENSES DESPITE THE FACT THAT SIMILAR MOVES IN THE RECENT PAST HAVE ALREADY OVERWHELMED FEDERAL COURTS AND PRISONS WITHOUT MAKING THE STREETS ANY SAFER MR CLINTON HAS ALREADY ASSURED DELAWARE DEMOCRATIC SEN JOSEPH BIDEN THE JUDICIARY COMMITTEE CHAIRMAN THAT JANET RENO'S FIRST POLITICAL ASSIGNMENT AS ATTORNEY GENERAL WILL BE TO HELP LOBBY FOR A BIDENSPONSORED CRIME PACKAGE THAT WOULD AMONG OTHER THINGS EXTEND THE FEDERAL DEATH PENALTY TO COVER 50 FELONIES MOREOVER THE PACKAGE IS EXPECTED TO ATTRACT AMENDMENTS THAT WOULD BROADEN STILL FURTHER THE FEDERAL GOVERNMENT'S JURISDICTION INCLUDING ONE THAT WOULD CREATE FEDERAL PUNISHMENTS FOR NEARLY ALL OFFENSES COMMITTED WITH GUNS FOR POLITICIANS OF ALL STRIPES THE EXPANSION OF FEDERAL JURISDICTION IS SHAPING UP TO BE A NOLOSE OPPORTUNITY TO SHOW THE HOME FOLKS THAT THEY ARE TOUGH ON STREET CRIME AT THE SAME TIME THOUGH THE MOVE IS DRAWING OPPOSITION FROM MANY FEDERAL JUDGES AND PROSECUTORS WHO WOULD HAVE TO MAKE THE SYSTEM WORK CHIEF JUSTICE WILLIAM REHNQUIST NO BLEEDING HEART FORCEFULLY OPPOSES FEDERALIZATION OF CRIMINAL MATTERS TRADITIONALLY HANDLED BY STATE AND LOCAL AUTHORITIES HE SAYS THAT MAKING THE VAST ARRAY OF FIREARM OFFENSES A FEDERAL RESPONSIBILITY A PROPOSAL PUSHED BY REPUBLICAN SEN AL D'AMATO OF NEW YORK WOULD COST A LOT OF MONEY AND SKEW RELATIONS BETWEEN FEDERAL AND STATE GOVERNMENTS WITH LITTLE PROBABILITY OF IMPACT ON THE CRIME PROBLEM EVEN SEN BIDEN THE DEMOCRATIC ARCHITECT OF EXPANDED FEDERAL CRIMINAL AUTHORITY WORRIES THAT CONGRESS MAY BE GOING TOO FAR HE ADMITS TO NEW ANXIETY OVER SUCH PAST EFFORTS AS A LAW ENACTED IN 1988 THAT SET A MANDATORY PRISON TERM OF FIVE YEARS FOR SELLING AS LITTLE AS FIVE GRAMS OF COCAINE I WAS SURE WHERE I STOOD ON SUCH LAWS FOUR YEARS AGO MR BIDEN SAYS I'M NOT SO SURE WHERE I STAND NOW BUT HIS CONCERNS WON'T STOP HIM FROM PUSHING MORE CRIME LEGISLATION THIS YEAR THE TREND TOWARD FEDERALIZING STREET CRIME IS MOST OBVIOUS IN THE SPATE OF NEW LAWS PASSED DURING THE FEDERAL WAR ON DRUGS OF THE LATE 1980S BUT THE TREND HAS CONTINUED EVEN AS ATTENTION TO THE DRUG WAR HAS DECLINED CONGRESS LAST YEAR APPROVED NEW FEDERAL PENALTIES FOR CARJACKING AND FOR VANDALIZING ANIMAL FACILITIES SUCH AS BIOMEDICAL LABS IN HER CONFIRMATION HEARING THIS WEEK MS RENO PROMISED SUPPORT FOR A BILL SPONSORED BY SEN BIDEN THAT WOULD CREATE NEW FEDERAL PUNISHMENTS FOR RAPE SUPPORTERS OF FEDERALIZATION ASSERT THAT BESIEGED COMMUNITIES NEED HELP FROM WASHINGTON BY AND LARGE DRUG TRAFFICKING IS A NATIONAL PROBLEM IT CROSSES STATE LINES ARGUES REPUBLICAN SEN ORRIN HATCH OF UTAH BUT SKEPTICS SUCH AS US DISTRICT JUDGE NORMA SHAPIRO OF PHILADELPHIA ASSERT THAT BY NOISILY ANNOUNCING PURPORTED FEDERAL SOLUTIONS TO THE CRIME PROBLEM CONGRESS DISTRACTS ATTENTION FROM THE NEEDS OF STATES WHICH STILL DEAL WITH 95 OF ALL CRIMINAL CASES THE FEDERAL COURTS RELATIVELY FEW IN NUMBER CANNOT EVER SUPPLANT THE STATE COURTS SHE SAYS THE IMPACT OF THE DRUG WAR TENDS TO BUTTRESS THE SKEPTICS' ARGUMENT FEDERAL DRUG PROSECUTIONS HAVE TRIPLED OVER THE PAST DECADE TO MORE THAN 13000 A YEAR MANY OF THEM INVOLVING MULTIPLE DEFENDANTS THESE CASES HAVE LED TO THE QUADRUPLING OF THE FEDERAL PRISON POPULATION SINCE 1980 TO 80000 WHICH IS MORE THAN 40 OVER OFFICIAL CAPACITY THE FEDERAL BUREAU OF PRISONS EXPECTS THAT POPULATION TO REACH 133000 BY THE YEAR 2000 WHILE SURVEYS SHOW MIDDLECLASS COCAINE USE HAS FALLEN FROM ITS PEAK IN THE MID1980S ABUSE BY THE URBAN POOR CONTINUES TO RISE ILLEGAL NARCOTICS ARE AS WIDELY AVAILABLE AS THEY WERE IN THE EARLY 1980S ACCORDING TO PETER REUTER A RAND CORP DRUG POLICY EXPERT HE POINTS OUT THAT WHEN ADJUSTED FOR INFLATION THE STREET PRICE OF COCAINE IS LOWER THAN EVER A STRONG INDICATION THAT SUPPLY IS PLENTIFUL MEANWHILE VIOLENT CRIME CONTINUES TO RISE ACCORDING TO THE FEDERAL BUREAU OF INVESTIGATION WITH AN OMINOUS INCREASE IN MURDERS COMMITTED BY TEENAGERS CONGRESSMEN AND US ATTORNEYS LIKE TO TALK ABOUT GOING AFTER DRUG KINGPINS BUT THE MORE TYPICAL TARGETS OF FEDERAL ENFORCEMENT HAVE BEEN SMALLTIME DEALERS NEARLY HALF OF INMATES IN FEDERAL CELLS ARE EITHER STREETLEVEL DEALERS OR OTHER MINOR PARTICIPANTS ACCORDING TO MR REUTER IN A PERVERSE TWIST MANDATORY MINIMUM SENTENCES COMBINED WITH THE OVERALL FEDERAL SENTENCING GUIDELINES FREQUENTLY RESULT IN NONVIOLENT FIRSTTIME OFFENDERS RECEIVING TOUGHER PUNISHMENT THAN REPEAT OFFENDERS THAT'S BECAUSE HIGHLEVEL BAD GUYS HAVE MORE INFORMATION TO OFFER PROSECUTORS AND TURNING STATE'S EVIDENCE IS ONE OF THE FEW WAYS TO ESCAPE RIGID SENTENCING RULES YOU HAVE AN ARBITRARY AND UNREASONABLE SITUATION QUITE OFTEN SAYS JUDGE SHAPIRO THE RINGLEADER COOPERATES WITH PROSECUTORS AND ENDS UP WITH THREE YEARS WHILE THE SMALL FRY PICKED UP LATER HAS NOTHING OF VALUE TO TELL AND GETS 10 YEARS THE US SENTENCING COMMISSION CREATED BY CONGRESS TO IRON OUT DISPARITIES IN PUNISHMENT HAS COMPLAINED THAT MANDATORYMINIMUM LAWS CONFLICT WITH ITS MISSION BY ENCOURAGING THIS TYPE OF UNFAIRNESS IN A 1991 REPORT THE COMMISSION ALSO SAID THAT THERE ARE RACIAL INEQUITIES FEDERAL PROSECUTORS HAVE TENDED TO SEEK MANDATORY MINIMUM SENTENCES PROPORTIONALLY MORE OFTEN FOR BLACK AND HISPANIC DEFENDANTS THAN FOR WHITES BUT THERE'S NO SIGN THAT ANY OF THESE PROBLEMS WILL SLOW THE MARCH TOWARD FEDERALIZING MORE CRIME INDEED SEN BIDEN HAS FELT COMPELLED TO TEMPER PRESIDENT CLINTON'S ENTHUSIASM FOR EARLIER INTRODUCTION OF THE CRIME PACKAGE WHICH WILL ALSO INCLUDE GUNCONTROL PROVISIONS AND FEDERAL AID FOR LOCAL POLICE AN EARLIER VERSION OF THE BILL DIED IN OCTOBER DESPITE MAJORITY SUPPORT IN BOTH HOUSES WHEN SENATE REPUBLICANS INSISTED ON MAKING ITS DEATHPENALTY APPEAL PROVISION MORE STRINGENT DETERMINED TO PROVE THAT HE IS AS TOUGH ON CRIME AS HIS REPUBLICAN PREDECESSORS MR CLINTON HAS TELEPHONED SEN BIDEN SIX TIMES TO PUSH FOR ACTION ON THE PACKAGE THE SENATOR SAYS THAT WHEN HE SUGGESTED THAT THE PRESIDENT MIGHT HAVE RESERVATIONS ABOUT SOME ASPECTS OF THE COMPLICATED OMNIBUS BILL MR CLINTON RESPONDED I'M FOR IT JOE EXACTLY AS YOU WROTE IT 9303120087 930312 INTERNATIONAL ITALIAN POLICE SEIZE MORE ENI OFFICERS AS SCANDAL WIDENS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN AN OVERNIGHT BLITZ POLICE ARRESTED THREE MORE EXECUTIVES OF STATE PETROCHEMICAL CONCERN ENTE NAZIONALE IDROCARBURI OR ENI DECIMATING THE EXECUTIVE LEVEL OF ITALY'S THIRD LARGEST COMPANY BETWEEN WEDNESDAY NIGHT AND THURSDAY MORNING THE CHAIRMEN OF OIL COMPANY AGIP SPA NATURAL GAS GROUP SNAM SPA AND OIL SERVICES GROUP SAIPEM SPA WERE ARRESTED FOR ALLEGEDLY FALSIFYING BALANCE SHEETS AND MAKING ILLEGAL DONATIONS TO POLITICAL PARTIES INVESTIGATING MAGISTRATES TOLD STATE TELEVISION THAT THE CHARGES ARE RELATED TO IRREGULARITIES IN THE BUILDING OF A NATURALGAS PIPELINE BETWEEN ITALY AND ALGERIA BUT GAVE NO DETAILS THOSE ARRESTED WERE SAIPEM CHAIRMAN GIANNI DELL'ORTO SNAM CHAIRMAN PIO PIGORINI AND AGIP CHAIRMAN RAFFAELE SANTORO THE MOVES FOLLOW THE ARREST EARLIER THIS WEEK OF ENI CHAIRMAN GABRIELE CAGLIARI AND FRANCO CIATTI MANAGING DIRECTOR OF ENI'S ENGINEERING SUBSIDIARY NUOVO PIGNONE FOR ALLEGEDLY AUTHORIZING A MULTIMILLIONDOLLAR KICKBACK TO POLITICAL PARTIES ON A CONTRACT FOR SUPPLYING GAS TURBINES TO ENEL ITALY'S ELECTRIC POWER GROUP THE WAVE OF ARRESTS COMES JUST AS THE GOVERNMENT PLANS TO PRIVATIZE MANY OF ENI'S HOLDINGS NUOVO PIGNONE IS OFFICIALLY UP FOR SALE AND SNAM AND AGIP HAVE BEEN DESIGNATED AS PRIVATIZATION CANDIDATES FINANCIAL ANALYSTS SAID THAT ALTHOUGH THE ARRESTS WOULD DAMAGE THE IMAGE OF THE STATE COMPANIES THE SHAKEOUT COULD HAVE A POSITIVE OUTCOME THE TOP MANAGEMENT AT STATECONTROLLED COMPANIES WERE POLITICAL APPOINTMENTS THEY WERE POLITICIANS IN DISGUISE SAID PETER GYLLENBAGA AN ANALYST AT CREDIT SUISSE FIRST BOSTON IN MILAN THE REAL STRENGTH AT THOSE COMPANIES IS THE MIDDLE MANAGERS GETTING RID OF THE TOP WON'T HAVE A NEGATIVE EFFECT ON OPERATIONS ON THE CONTRARY 9303120086 930312 INTERNATIONAL RENAULT PROFIT SOARED IN 1992 BUT CHAIRMAN PREDICTS A ROUGH 1993 SPECIAL TO THE WALL STREET JOURNAL PARIS RENAULT SA POSTED AN 85 JUMP IN PROFIT FOR 1992 BUT CHAIRMAN LOUIS SCHWEITZER PAINTED A GLOOMY PICTURE OF THE EUROPEAN AUTO MARKET IN 1993 IN ANNOUNCING THAT THE STATECONTROLLED COMPANY'S PROFIT CLIMBED TO 568 BILLION FRANCS 1 BILLION MR SCHWEITZER SAID 1993 IS SHAPING UP TO BE THE WORST YEAR FOR EUROPEAN AUTO MAKERS SINCE THE OIL CRISIS 20 YEARS AGO HE SAID THE COMPANY WILL TRIM JOBS AND COSTS BUT SAID IT WOULD BE SUICIDAL FOR AUTO MAKERS TO GET INTO A PRICE WAR EUROPEAN CAR SALES ARE EXPECTED TO SHRINK BY AS MUCH AS 10 AFTER A 02 DROP IN 1992 IN 1992 RENAULT'S EARNINGS GROWTH TO A LARGE EXTENT WAS DUE TO A 12 RISE IN SALES AT ITS AUTOMOBILE DIVISION TO 150 BILLION FRANCS RENAULT'S EARNINGS PERFORMANCE LAST YEAR WAS ALL THE MORE REMARKABLE IN THAT THE GROUP WAS SET BACK BY THE FINANCIAL PROBLEMS OF AB VOLVO ITS SWEDISH PARTNER VOLVO REDUCED RENAULT'S EARNINGS BY 138 BILLION FRANCS LAST YEAR COMPARED WITH A NEGATIVE CONTRIBUTION OF 12 MILLION FRANCS IN 1991 RENAULT AND VOLVO ARE LINKED IN A WEB OF SHARE CROSSOWNERSHIP YESTERDAY THE SWEDISH AUTOMOTIVE AND AEROSPACE GROUP REPORTED THAT IT SWUNG TO A 331 BILLION KRONA 4348 MILLION PRETAX LOSS IN 1992 AND SLASHED ITS PROPOSED DIVIDEND BY 50 TO 775 KRONOR IN 1991 VOLVO HAD A PRETAX PROFIT OF 111 BILLION KRONOR 9303120085 930312 MARKETING & MEDIA FCC ADOPTS REGULATIONS ON SERVICE USE OF LOCAL SIGNALS BY CABLE INDUSTRY BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION ADOPTED RULES GOVERNING SERVICE BY CABLE COMPANIES AND THEIR USE OF LOCAL OVERTHEAIR TV SIGNALS THE RULES IN EFFECT REQUIRE CABLE COMPANIES TO CARRY LOCAL COMMERCIAL AND NONCOMMERCIAL BROADCAST STATIONS IF THE LOCAL BROADCASTERS APPROVE LOCAL BROADCASTERS MAY NEGOTIATE A FEE FROM CABLE COMPANIES THAT CARRY THEIR SIGNALS A TV STATION HOWEVER CAN FORGO NEGOTIATIONS AND DEMAND THAT A LOCAL CABLE OPERATOR CARRY ITS SIGNAL THE FCC DETERMINED THAT CABLE SYSTEMS WITH 12 OR FEWER CHANNELS MUST CARRY ONLY ONE NONCOMMERCIAL EDUCATIONAL STATION AND AT LEAST THREE LOCAL COMMERCIAL TV STATIONS MEDIUMSIZED CABLE SYSTEMS WITH 13 TO 36 CHANNELS MUST CARRY AS MANY AS THREE LOCAL NONCOMMERCIAL EDUCATIONAL CHANNELS AND SYSTEMS WITH 13 OR MORE CHANNELS MUST USE AS MANY AS ONETHIRD OF THEIR CHANNELS TO CARRY LOCAL COMMERCIAL TV STATIONS LOCAL TV STATION OWNERS WHO NEGOTIATE A FEE OR OTHER COMPENSATION FROM A CABLE COMPANY ARE EXPECTED TO COMPLETE THEIR AGREEMENTS IN EARLY AUGUST UNDER THE RULES THE AGREEMENTS LAST THREE YEARS IF NEGOTIATIONS FAIL A BROADCASTER CAN'T THEN DEMAND THAT A CABLE COMPANY CARRY ITS SIGNAL AND THE CABLE COMPANY MUST NOTIFY SUBSCRIBERS BY SEPT 6 THAT IT IS DROPPING THE STATION'S SIGNAL YESTERDAY'S ACTION IS PART OF A MASSIVE EFFORT BY THE AGENCY TO ADOPT RULES THAT CARRY OUT THE CABLE REREGULATION BILL THAT CONGRESS PASSED LAST FALL THE LAW'S PROVISIONS GOVERNING CABLE COMPANIES' USE OF BROADCASTERS' SIGNALS HAVE BEEN HOTLY DEBATED ONLY HOURS AFTER THE LAW WAS PASSED SEVERAL CABLE COMPANIES CHALLENGED THE PROVISIONS IN FEDERAL COURT HERE LAST MONTH CABLEVISION SYSTEMS CORP TOOK A MORE DIRECT APPROACH BY THREATENING TO DROP CERTAIN CONNECTICUT TV STATIONS IF THEY SEEK TRANSMISSION FEES THE COMMISSION ALSO ADOPTED STRICT SERVICE STANDARDS FOR CABLE COMPANIES THAT IN GENERAL WILL BE ENFORCED BY LOCAL FRANCHISING AUTHORITIES UNDER THE RULES CABLE OPERATORS MUST MAINTAIN A ROUNDTHECLOCK LOCAL TELEPHONE NUMBER THAT IS FREE TO CONSUMERS IN ADDITION THE CALLS MUST BE ANSWERED WITHIN 30 SECONDS THE RULES LIMIT BUSY SIGNALS TO 3 OF THE CALLS IT ALSO REQUIRES THAT BILLS BE CONCISE AND UNDERSTANDABLE AND THAT CUSTOMERS BE NOTIFIED 30 DAYS IN ADVANCE OF CHANGES IN RATES CHANNEL POSITIONS OR PROGRAMMING STRICT LIMITS ALSO WERE SET ON SERVICE CALLS REQUIRING CABLE OPERATORS TO GIVE CONSUMERS A FOURHOUR APPOINTMENT WINDOW IN WHICH INSTALLERS OR REPAIR PEOPLE WILL ARRIVE IF SERVICE PERSONNEL CAN'T KEEP THE APPOINTMENT IT WILL BE RESCHEDULED AT THE CUSTOMER'S CONVENIENCE INSTALLATIONS GENERALLY ARE REQUIRED TO BE DONE WITHIN SEVEN BUSINESS DAYS AFTER A CUSTOMER PLACES AN ORDER AND CABLE OPERATORS MUST BEGIN REPAIRING SERVICE INTERRUPTIONS WITHIN 24 HOURS AFTER BEING NOTIFIED OF A PROBLEM THE AGENCY ALSO PROHIBITED CABLE COMPANIES FROM REQUIRING CONSUMERS TO BUY MORE THAN THE BASIC TIER OF SERVICE IN ORDER TO SUBSCRIBE TO PREMIUM CHANNELS OR PAYPERVIEW SERVICES EXCEPT WHEN CABLE SYSTEMS AREN'T TECHNICALLY ABLE TO DO SO ABOUT 22 OF THE NATION'S CABLE SYSTEMS ALREADY HAVE INSTALLED EQUIPMENT THAT LETS SUBSCRIBERS CHOSE THEIR PROGRAMMING AND MANY MORE SYSTEMS CAN USE FREQUENCY FILTERS KNOWN AS TRAPS WHICH BLOCK CERTAIN CABLE CHANNELS AT A SUBSCRIBERS' HOME 9303120084 930312 COMEX DECLINES COMMENT ON COFFEE EXCHANGE BID NEW YORK THE COMMODITY EXCHANGE'S BOARD DECLINED COMMENT ON AN UNSOLICITED OFFER TO BE TAKEN OVER BY THE COFFEE SUGAR & COCOA EXCHANGE JAMES J BOWE SENIOR VICE PRESIDENT FOR THE COFFEE EXCHANGE SAID NO COMEX OFFICIAL HAD RESPONDED TO HIS EXCHANGE'S PROPOSAL TO MAKE THE COMEX A WHOLLYOWNED SUBSIDIARY ALAN HANSON A COMEX SPOKESMAN IN NEW YORK SAID THE COMEX BOARD WOULD HAVE NO COMMENT FOR THE TIME BEING NEGOTIATIONS ARE UNDERWAY BETWEEN THE COMEX AND THE CHICAGO BOARD OF TRADE ON AN EARLIER TAKEOVER PROPOSAL BY THE CBOT COMEX CHAIRWOMAN DONNA REDEL AND OTHER SENIOR COMEX BOARD MEMBERS WERE IN CHICAGO YESTERDAY NEGOTIATING TERMS OF THE CBOT TAKEOVER PROPOSAL WHICH WAS TENTATIVELY ACCEPTED BY THE COMEX BOARD IN LATE JANUARY BUT STILL REQUIRES TWOTHIRDS APPROVAL BY COMEX MEMBERS MS REDEL DECLINED TO RETURN PHONE CALLS IN CHICAGO 9303120083 930312 CAMBIOR INC'S EXPLORATION UNIT MONTREAL CAMBIOR INC SAID IT'S FORMING A UNIT TO EXPLORE CERTAIN MINING PROPERTIES IN NORTHWESTERN QUEBEC THE UNIT CAMBIEX EXPLORATION INC HAS FILED A PRELIMINARY PROSPECTUS WITH THE QUEBEC SECURITIES COMMISSION FOR AN OFFERING OF 5000 UNITS PRICED AT 1000 CANADIAN DOLLARS US803 EACH CAMBIOR A MINING COMPANY WOULD HOLD 405 OF CAMBIEX'S SHARES OUTSTANDING FOLLOWING THE OFFERING LEVESQUE BEAUBIEN GEOFFRION INC IS AGENT 9303120082 930312 BAREFOOT FILES 15 MILLION SHARES WORTHINGTON OHIO BAREFOOT INC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 15 MILLION COMMON SHARES ONE MILLION OF THE SHARES ARE BEING SOLD BY GOLDER THOMA CRESSEY FUND II THE REMAINING 500000 WILL BE SOLD BY BAREFOOT A LAWNCARE SERVICE CONCERN TO RETIRE SUBORDINATED NOTES AND ACQUISITION INDEBTEDNESS 9303120081 930312 RAYTHEON DIVISION GETS CONTRACT LEXINGTON MASS RAYTHEON CO SAID ITS ELECTROMAGNETIC SYSTEMS DIVISION IN GOLETA CALIF RECEIVED A 444 MILLION NAVY CONTRACT FOR 28 SIDEKICK ELECTRONIC COUNTERMEASURE SYSTEMS FOR SHIPS 9303120080 930312 LETTERS TO THE EDITOR NBC PRESIDENT WHAT I REALLY SAID I WANT YOU TO KNOW THAT A COMMENT ATTRIBUTED TO ME IN YOUR MARCH 2 PAGEONE ARTICLE OFF THE AIR NBC NEWS PRESIDENT BURNED BY STAGED FIRE AND GM WILL RESIGN IS TOTALLY INACCURATE AND FALSE YOUR ARTICLE STATES MATTERS WEREN'T HELPED WHEN MR WRIGHT NBC'S PRESIDENT TOLD EMPLOYEES LAST WEEK THAT THE PROBLEM WITH THE DATELINE' INCIDENT WASN'T SO MUCH THAT IT HAPPENED BUT THAT NBC GOT CAUGHT I HAVE NEVER SAID ANYTHING TO ANYONE THAT EVEN REMOTELY RESEMBLES THIS REMARK TO THE CONTRARY WHAT I DID SAY TO NBC EMPLOYEES LAST WEEK IN EXTENSIVE REMARKS ABOUT DATELINE WAS I THINK I'VE MADE NO SECRET OF SAYING PUBLICLY THAT THIS IS A VERY SERIOUS ISSUE OUR CREDIBILITY AND OUR REPUTATION BOTH AT NBC NEWS AND NBC HAVE BEEN DAMAGED AND ARE VERY VERY IMPORTANT TO US WE MUST RESTORE THAT WE HAVE NO CHOICE BUT TO BE VERY PUBLIC BOTH IN THE SENSE OF EXPLAINING WHAT'S HAPPENED AND IN OUR APOLOGIES WHERE APPROPRIATE I HAVE MADE IT ABUNDANTLY CLEAR IN NUMEROUS STATEMENTS TO MEMBERS OF THE PRESS AND REPEATED COMMUNICATIONS TO NBC EMPLOYEES AND OTHERS THAT I CONSIDER THE RECENT DATELINE EVENT TO BE EXTREMELY SERIOUS FURTHER I HAVE INSTITUTED A COMPLETE AND RIGOROUS REVIEW OF THE MATTER SO THAT NBC CAN TAKE STEPS TO ENSURE THAT SIMILAR EVENTS DO NOT OCCUR AGAIN 9303120079 930312 POLITICS & POLICY CLINTON UNVEILS 20 BILLION PLAN TO HELP INDUSTRIES WORKERS HIT BY DEFENSE CUTS BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL BALTIMORE PRESIDENT CLINTON UNVEILED A FIVEYEAR 20 BILLION PLAN TO HELP WORKERS COMMUNITIES AND INDUSTRIES ADAPT TO THE POSTCOLD WAR ECONOMY I KNOW THE WORLD'S FINEST MAKERS OF SWORDS CAN AND WILL BECOME THE WORLD'S FINEST MAKERS OF PLOWSHARES SAID MR CLINTON REFERRING TO HIS PLAN TO AID A PROJECTED 25 MILLION WORKERS AND POINT DEFENSE CONTRACTORS TOWARDS CONSUMER MARKETS FOR THE CURRENT FISCAL YEAR WHICH ENDS SEPT 30 MR CLINTON PLANS TO SPEND 17 BILLION TO RETRAIN DEFENSE WORKERS ENCOURAGE THE INDUSTRY TO REFOCUS ON CIVILIAN MARKETS AND INVEST IN COMMUNITIES HIT BY LAYOFFS AND BASE CLOSINGS THE BULK OF THE FUNDS 14 BILLION WAS ALLOCATED BY CONGRESS FOR DEFENSE CONVERSION LAST YEAR BUT WENT UNUSED BY THE BUSH ADMINISTRATION AN ADDITIONAL 300 MILLION WILL COME FROM REDIRECTING FUNDS INCLUDED IN THE 1993 PLAN IS 375 MILLION TO RETRAIN LAIDOFF DEFENSE EMPLOYEES ESPECIALLY FOR WORK IN EDUCATION LAW ENFORCEMENT AND HEALTH CARE ROUGHLY 500 MILLION WILL GO TOWARD CREATING GOVERNMENTSUPPORTED CONSORTIA OF BUSINESSES TO REAPPLY DEFENSE TECHNOLOGY TO PRODUCE CONSUMER GOODS AN ADDITIONAL 225 MILLION IS AIMED AT CREATING GOVERNMENTINDUSTRY PARTNERSHIPS TO DEVELOP SOCALLED DUAL USE TECHNOLOGIES WHICH HAVE BOTH MILITARY AND COMMERCIAL APPLICATIONS AND 300 MILLION WILL GO TOWARD INFORMATIONSHARING PROGRAMS AND HELPING SMALLER FIRMS ASSORTED OTHER FUNDS WOULD BE USED TO HELP COMMUNITIES SUFFERING THE LOSS OF DEFENSERELATED JOBS THE ADMINISTRATION INVITED PEOPLE WITH SUGGESTIONS ON HOW TO CONVERT FROM MILITARY TO CIVILIAN ACTIVITIES TO CALL 1800DUALUSE MR CLINTON PRESENTED THE PLAN IN A 15MINUTE SPEECH TO EMPLOYEES AT A WESTINGHOUSE ELECTRONIC SYSTEMS GROUP PLANT HERE DESPITE LAYING OFF 4400 OF ITS 17000PERSON STAFF THE WESTINGHOUSE ELECTRIC CORP UNIT HAS BEEN APPLAUDED FOR EFFORTS TO FIND CIVILIAN APPLICATIONS FOR MILITARY TECHNOLOGY BEFORE HIS SPEECH THE PRESIDENT TOURED SEVERAL EXHIBITS ON THE DEFENSE CONTRACTOR'S COMMERCIAL MANUFACTURING EFFORTS INCLUDING AN ELECTRIC VAN A RADAR FOR COMMERCIAL PLANES TO DETECT WIND SHEAR AND A COMPUTER SYSTEM FOR POLICE CARS ACCORDING TO A WESTINGHOUSE SPOKESMAN THE COMPANY WOULD HAVE ELIMINATED MANY MORE JOBS IF IT HADN'T INCREASED THE COMMERCIAL SHARE OF ITS SALES TO 27 FROM 16 IN 1990 THE COMPANY HOPES TO REACH AN EVEN BALANCE BETWEEN MILITARY AND CIVILIAN SALES BY 1995 9303120078 930312 WHO'S NEWS FEDERATED DEPARTMENT STORES INC FEDERATED DEPARTMENT STORES INC CINCINNATI MATTHEW SERRA WAS NAMED CHAIRMAN OF THE STERN'S DIVISION AND WILL BECOME CHIEF EXECUTIVE OFFICER IN AUGUST MR SERRA 48 YEARS OLD SUCCEEDS LAWRENCE STONE 66 WHO REMAINS CHIEF EXECUTIVE UNTIL AUGUST MR STONE BECOMES CHAIRMAN OF THE BOARD'S EXECUTIVE COMMITTEE STERN'S WITH 22 STORES IN NEW YORK AND NEW JERSEY IS BASED IN PARAMUS NJ MR SERRA FORMERLY SERVED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BOTH THE G FOX AND SIBLEY'S DIVISIONS OF MAY DEPARTMENT STORES CO ST LOUIS AND MOST RECENTLY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SEAMAN FURNITURE INC SYOSSET NY C DANIEL ROWE 50 WILL REMAIN PRESIDENT AND CHIEF OPERATING OFFICER OF STERN'S 9303120077 930312 MOST COMPANIES PLAN TO AT LEAST MAINTAIN CAPITAL SPENDING IN '93 NEW YORK MOST COMPANIES PLAN TO INCREASE THEIR CAPITAL SPENDING THIS YEAR OR MAINTAIN IT AT 1992 LEVELS SUGGESTING CONTINUED ECONOMIC GROWTH ACCORDING TO A SURVEY BY DUN & BRADSTREET CORP OF THE 5000 US COMPANIES SURVEYED IN JANUARY 443 SAID THEY PLAN TO INCREASE THEIR CAPITAL SPENDING WHILE 387 EXPECT TO KEEP SPENDING AT 1992 LEVELS D&B SAID REMAINING RESPONDENTS OR 17 FORECAST CUTBACKS IN SPENDING AFTER A SHARP DECLINE IN THE NUMBER OF COMPANIES THAT PROJECTED INCREASED OR STEADY SPENDING FOR 1990 AND 1991 THE SURVEY'S PROJECTED REBOUND IN CAPITAL SPENDING IS WELCOME NEWS AND UNDERSCORES CURRENT FORECASTS FOR CONTINUED ECONOMIC GROWTH IN 1993 SAID JOSEPH W DUNCAN CORPORATE ECONOMIST FOR D&B ONLY 316 OF THE COMPANIES SURVEYED IN 1990 PROJECTED AN INCREASE IN SPENDING IN 1991 WHILE 434 LOOKED FOR A DECLINE IN SPENDING A SURVEY FOR 1992 WASN'T CONDUCTED D&B SAID 9303120076 930312 LEISURE & ARTS THE NEW FACE OF CABARET BY ROXANE ORGILL NEW YORK IMMEDIATELY UPON PASSING THROUGH THE ETCHED GLASS DOORS ONE HEARD THE BUZZ THE UNMISTAKABLE SOUND OF A NEW YORK HIT THE USUALLY SLEEPY ALGONQUIN HOTEL LOBBY WAS CROWDED WITH FUR BASIC BLACK AND GOOD JEWELRY SOME OF IT IN A WAITINGLIST LINE THE REST CLUSTERED AROUND THE DOORWAY TO THE OAK ROOM INSIDE WAITERS WERE SQUEEZING IN EXTRA HANDKERCHIEFSIZED TABLES IN A HOPELESS EFFORT TO ACCOMMODATE ALL WHO WISHED TO ENTER FOR 16 WEEKS THIS FALL AND WINTER ANDREA MARCOVICCI SOLD OUT THE OAK ROOM AN UNPRECEDENTED SUCCESS FOR A CABARET SINGER IN MODERN TIMES YET SHE CAN'T REALLY SING NOT IN THE CONVENTIONAL SENSE SHE HAS PITCH PROBLEMS TONE TROUBLES IN THE MIDDLE AND HIGH REGISTERS AND A CAPRICIOUS SENSE OF WHEN TO SING LOUD OR SOFT HER APPEAL GOES BEYOND THE VOCAL THERE'S HER WRY HUMOR AND HER INTELLIGENCE HER MIXTURE OF OLDFASHIONED CHARM AND MODERN BITE HER INNATE SENSE OF WHAT SONG TO SING WHEN HER ENTHUSIASTIC QUEST FOR NEW SONGS AND HER DELIGHTED DISCOVERIES OF OLD SONGS IT'S THE WAY SHE SITS CROSSLEGGED ON THE PIANO LID IN AN EVENING GOWN IT'S THE LOOK OF VULNERABILITY AS SHE STANDS IN THE CROOK OF A PIANO ON AN OVERSIZED DOORMAT OF A STAGE WITH LISTENERS AT BOTH ELBOWS IT'S HER WIDE SMILE AND THE TEARS IN HER EYES IN OTHER WORDS IT'S HER WAY WITH CABARET OF WHICH SINGING IS ONLY ONE PART AND NOT THE MOST IMPORTANT TO PUT ACROSS AN AMERICAN POPULAR SONG IN A SMALL ROOM WITH ONLY A PIANO FOR COMPANY YOU NEED TO BE AN ACTRESS UNLIKE SOME OTHER PERFORMERS SUCH AS JULIE WILSON MS MARCOVICCI SINGS THE SONGS MORE OR LESS STRAIGHT AND SAVES HER ACTING FOR THE SPACE BETWEEN SONGS FILLING THE VOID WITH A BARRAGE OF ENTERTAINING PATTER TALK GIVES THE 85 OR SO MINUTES A STRUCTURE AND MOST IMPORTANTLY GETS HER A LAUGH I DON'T GET MY APPROVAL FROM APPLAUSE I GET IT FROM LAUGHS THE 43YEAROLD ENTERTAINER ADMITS I DON'T KNOW A SINGER WHO NEEDS LAUGHS THE WAY I DO SHE MAY READ ALOUD FROM A VOLUME OF EDNA ST VINCENT MILLAY HER FAVORITE POET OR QUOTE FROM AN EB WHITE ESSAY TO SET A MOOD SHE PAIRS SONGS WITH OPPOSING VIEWPOINTS AND MAKES NEAT TRANSITIONS FOR INSTANCE AT ONE PERFORMANCE AFTER THE MAN THAT GOT AWAY A BITTER SONG BY IRA GERSHWIN AND HAROLD ARLEN SHE SAID THAT'S HOW JUDY GARLAND WOULD HAVE HANDLED THE SITUATION WE NEED TO HEAR HOW ETHEL MERMAN WOULD HANDLE IT WE NEED TO HEAR FROM LYRICIST DOROTHY FIELDS WHEN THERE'S NO DOUBT THE FIRE'S OUT A LADY NEEDS A CHANGE' SANG MS MARCOVICCI WITH A MISCHIEVOUS SMILE HER ASIDES ARE DELICIOUS GEORGE AND IRA GERSHWIN'S SOMEONE TO WATCH OVER ME SHE ANNOUNCED ONE EVENING WAS FROM THE MUSICAL OH KAY' GERTRUDE LAWRENCE SANG IT TO HER RAG DOLL IN CASE ANYONE IS GOING ON JEOPARDY' AND GERTRUDE LAWRENCE IS A CATEGORY TINY PAUSE WE SHOULD LIVE IN SUCH A WORLD IT ALL SOUNDS IMPROVISED AND CASUAL BUT IN FACT THE PATTER IS CAREFULLY CONCEIVED OVER A LONG PERIOD OF TRIAL AND ERROR FIRST AT HOME AND THEN IN THE GARDENIA A TINY CLUB IN HER HOME TOWN OF LOS ANGELES THAT SERVES AS HER LAB EACH SHOW HAS A THEME AND TYPICALLY TAKES ABOUT TWO YEARS TO PREPARE STRUCTURE AND REFINE I NEVER WRITE IT DOWN RESOLUTELY REFUSE TO SO THERE'S ALWAYS THAT LITTLE EXTRA BIT OF TERROR AS TO HOW IT WILL BE SAID TONIGHT I DO IT THAT WAY BECAUSE IT'S HONEST AND IT'S EMOTIONAL AND IT'S DANGEROUS AND I LIKE ALL THAT SHE SAYS MS MARCOVICCI'S RIGOROUS APPROACH TO PUTTING TOGETHER A SHOW HAS CHANGED THE FACE OF CABARET A PERFORMER STARTING OUT DOESN'T DARE GET UP AND JUST SING A LA ROSEMARY CLOONEY HE OR SHE MUST HAVE A CONCEPT A THEME A REASON MS MARCOVICCI'S INVENTIVE THEMES HAVE INCLUDED HOME FOR THE HOLIDAYS ABOUT NEW YORK AND THE CONCEPT OF HOME LOVE SONGS OF WORLD WAR II THE LIVE RECORDING COMPLETE WITH PATTER IS ON CABARET RECORDS AND JUST KERN A RICHLY ORCHESTRATED VERSION IS AVAILABLE ON ELBA RECORDS THE NEXT MARCOVICCI PROJECT WILL BE A RADICAL DEPARTURE AN ENTIRE SHOW OF MODERN SONGS ALTHOUGH SHE HAS PERFORMED THE OCCASIONAL CONTEMPORARY SONG AND IS MORE OPEN TO NEW MATERIAL THAN MOST HER SHOWS HAVE ALL BEEN ROOTED IN THE THEATER MUSIC OF THE 1920S '30S AND '40S TRADITIONAL CABARET REPERTOIRE BUT WHILE SHE WAS AT THE ALGONQUIN COMPOSERS AND LYRICISTS SENT HER LOTS OF NEW SONGS WHICH SHE TRIED OUT IN INFORMAL SALONS IN THE AFTERNOONS I FELT LIKE MABEL MERCER SHE SAYS IT WAS LIKE A FORUM I FOUND THE KIND OF MUSIC I'VE BEEN LOOKING FOR ECCENTRIC DEEPLY POETIC DIFFICULT ART SONG MUSIC EACH NIGHT SHE SLIPPED ONE OF THE SONGS INTO HER SHOW READING STRAIGHT FROM THE SHEET MUSIC WITH THE COMPOSER AT THE PIANO SONGWRITERS INCLUDED STEPHEN SCHWARTZ BILL FINN ROBERT WALDMAN DAVID ISRAEL PHILLIP NAMANWORTH JOHN BUCCHINO CRAIG CARNELIA AND HER PIANIST GLENN MEHRBACH THE PERFORMANCES HAD AN EXCITING INKSTILLWET QUALITY THEY HARKENED BACK TO THE EARLY DAYS JUST SEVEN YEARS AGO WHEN SHE WOULD SPREAD OUT ALL HER MUSIC ON THE DRESSINGROOM FLOOR AND CONCEIVE THE ACT MINUTES BEFORE SHOW TIME IN SAN FRANCISCO'S PLUSH ROOM BACK THEN MS MARCOVICCI WAS SINGING FOR A SPRINKLING OF PEOPLE MANY OF WHOM DID NOT UNDERSTAND HER OR CABARET SHE PERFORMS FOR MUCH LARGER AUDIENCES NOWADAYS WITNESS THE MOB SCENE THAT GREETED HER EACH EVENING THIS SEASON AT THE ALGONQUIN BUT SHE STILL HAS TWO FEET PLANTED FIRMLY ON THE GROUND EVERY NOW AND THEN MS MARCOVICCI SAYS WHEN I'M FEELING THE MOST PUFFED UP I'LL RUN INTO SOMEBODY IN THE LOBBY WHO SAYS ARE YOU OUR VOCALIST FOR THE EVENING' AND I'LL KNOW THEY DON'T HAVE A CLUE AND I'LL SAY TO MYSELF THAT'S GOOD THAT REMINDS ME I MAY BE HAVING THIS MARVELOUS LUCKY AND THRILLING SUCCESS BUT IT'S STILL AN AREA OF MUSIC THAT IS HARDLY MAINSTREAM MS ORGILL IS A FREELANCE WRITER IN HOBOKEN NJ 9303120075 930312 LETTERS TO THE EDITOR KEEP FEDERAL HANDS OFF SOCIAL SECURITY FUNDS REGARDING JOHN STOSSEL'S FEB 5 EDITORIALPAGE ARTICLE INFORMED RETIREES BACK ENTITLEMENT CUTS MR STOSSEL SUGGESTS THAT THE PEOPLE IN HIS SAMPLE GROUP WHO HAD RETIRED ABOUT 10 YEARS AGO ARE FOR ALL PRACTICAL PURPOSES COLLECTING WELFARE HIS CONTENTION IS THAT SINCE THEY ARE ULTIMATELY TAKING OUT MORE THAN WHAT THEY PUT IN PLUS INTEREST THEY ARE PUTTING A STRAIN ON THE SYSTEM FIRST IF THESE PEOPLE HAD BEEN ALLOWED TO DEPOSIT THIS MONEY IN INVESTMENTS OF THEIR OWN CHOICE SIMILAR TO A 401K PLAN THE ACCOUNT WOULD VERY LIKELY BE LARGE ENOUGH TO PRODUCE A MORE GENEROUS INCOME STREAM THAN THEY ARE RECEIVING NOW IN ADDITION THE BULK OF THE MONEY WOULD BE THEIRS TO CONTROL AND UPON THEIR DEATH THE MONEY WOULD PASS TO THEIR HEIRS BY GRADUALLY PHASING IN A PRIVATIZATION OF SOCIAL SECURITY WE COULD PREVENT CONGRESS FROM USING SOCIAL SECURITY FUNDS FOR OTHER PURPOSES AND PUT PEOPLE IN CONTROL OF THEIR OWN FINANCIAL FUTURES INDIVIDUALS WOULD STILL BE REQUIRED TO FUND A RETIREMENT ACCOUNT WITH THE SAME PERCENTAGE OF THEIR INCOME THAT THEY NOW PUT INTO SOCIAL SECURITY HOWEVER THEY WOULD HAVE THE CHOICE OF A VARIETY OF REASONABLE INVESTMENTS IN WHICH THEY COULD DEPOSIT THE MONEY MR STOSSEL'S ARTICLE BOTHERED ME AS MUCH AS WATCHING ABC'S 20/20 SHOW WHILE THE ARTICLE IS ESSENTIALLY CORRECT ALICE IS VIEWING THE ISSUE THROUGH THE WRONG END OF THE LOOKING GLASS THE ARTICLE'S POINT OF VIEW WAS PRESENTED IN THE CONTEXTUAL SETTING OF THE NEED FOR ENTITLEMENT CUTS TO TRIM THE BUDGET DEFICIT AS INTIMATED BY REFERENCE TO THE WHITE HOUSE CHIEF BEAN COUNTER LEON PANETTA I CONTEND THAT SOCIAL SECURITY SHOULD NOT BE TREATED AS AN OPERATING BUDGET LINE ITEM THE ENTITLEMENT PROGRAM SHOULD BE MORE APPROPRIATELY VIEWED AS A TRUST FUND SEPARATE FROM THE ACCOUNTING GIMMICKRY OF THE FEDERAL OPERATING BUDGET THE REAL ISSUE FOR CONSIDERATION IS ACTUARIAL IN NATURE SOCIAL SECURITY IS IN SURPLUS AS REPORTED BY SEN PATRICK MOYNIHAN BY MORE THAN 60 BILLION IN EFFECT THE ENTITLEMENT DOES NOT CONTRIBUTE TO THE CURRENT BUDGET DEFICIT A FRANK AND HONEST DISCUSSION NEEDS TO BE PRESENTED IN THIS LIGHT I SUGGEST A MORE MEANINGFUL EXHIBIT FOR MR STOSSEL'S FOLLOWUP PIECE A PIE DIAGRAM THAT SHOWS THE MAJOR CONTRIBUTORS TO THE BUDGET DEFICIT REMEMBER SOCIAL SECURITY IS IN SURPLUS AS FOR THE ACTUARIAL ISSUE LET'S TAKE A HARD LOOK AT IT SPIN THE ACTUARIAL MODELS AT THE OFFICE OF MANAGEMENT AND BUDGET AND PRESENT THE CASE TO THE AMERICAN PUBLIC BUT PLEASE STOP THE CHARADE OF USING THE SOCIAL SECURITY TRUST FUND TO COVER OTHER OPERATING EXPENSES OF THE GOVERNMENT IN THIS REGARD THE FEDERAL GOVERNMENT SHOULD APPLY A MORE DISCIPLINED APPROACH SIMILAR TO THE REGULATORY ENVIRONMENT THAT SURROUNDS CORPORATE PENSION FUNDS AND THE PROTECTION OF EMPLOYEES' PENSION ASSETS THE DEGREE OF FUTURE UNDERFUNDED LIABILITIES IN THE SOCIAL SECURITY PROGRAM WARRANTS STUDY AND PUBLIC CONSIDERATION HOWEVER THE ISSUE NEEDS TO BE VIEWED AS SEPARATE AND DISTINCT FROM ANY ECONOMIC PROGRAM OFFERED BY THE ADMINISTRATION 9303120074 930312 MARKETING & MEDIA EASTMAN KODAK PLANS TO TEST INFOMERCIALS ON PHOTO CD PRODUCT ROCHESTER NY EASTMAN KODAK CO WILL TEST 30MINUTE INFOMERCIALS AS A WAY TO SELL ITS PHOTO CD PRODUCT THE PHOTOGRAPHY CHEMICALS AND HEALTHCARE CONCERN IS ALREADY OFFERING FREE INFORMATIONAL VIDEOS AND BROCHURES THROUGH PREPAID POSTCARDS IN MAGAZINES AS OF YESTERDAY MORE THAN 60000 CONSUMERS HAVE RECEIVED THE VIDEOS SAYS ROBERT WEIR WHO HEADS UP PHOTO CD MARKETING KODAK HAS ALSO SENT BROCHURES TO ABOUT 45000 CUSTOMERS WHO DIALED A TOLLFREE NUMBER ADVERTISED IN TV COMMERCIALS IN 12 TEST MARKETS THE LITERATURE INCLUDES AN OFFER FOR A FREE CARDBOARD CAMERA TO GO TO A PHOTO CD DEMONSTRATION AN ADDITIONAL 25000 CUSTOMERS HAVE ASKED FOR INFORMATION ON THE PRODUCT THROUGH PRODIGY AN ONLINE COMPUTER SERVICE MR WEIR SAYS THOSE STRATEGIES HAVE WORKED SO WELL THAT KODAK PROBABLY WILL RUN THE INFOMERCIALS ONLY IN TWO SMALL TEST MARKETS JUST TO SEE HOW WELL THEY GENERATE RESPONSES COMPARED WITH THE TV ADS FEATURING THE TOLLFREE NUMBER FOR MANY CUSTOMERS PHOTO CD IS AS HARD TO FATHOM AS FAXES ONCE WERE THE TECHNOLOGY ALLOWS CONSUMERS TO STORE THEIR PHOTOS ON COMPACT DISKS SO THEY CAN BE VIEWED ON TV SETS OR EDITED ON COMPUTERS IT DOESN'T REQUIRE NEW CAMERAS CUSTOMERS SIMPLY SHOOT A ROLL OF FILM THE SAME WAY THEY ALWAYS HAVE AND THEN PAY A PREMIUM 20 FOR A ROLL OF 24 TO GET NEGATIVES AND A COMPACT DISK PRINTS COST EXTRA THEN THEY PLAY THE DISKS ON A PHOTO CD PLAYER WHICH ALSO PLAYS MUSIC DISKS OR ON A COMPACT DISK DRIVE FOR COMPUTERS KODAK WON'T RELEASE SALES FIGURES BUT IT SAYS IT HAS SHIPPED 100000 PHOTO CD PLAYERS WORLDWIDE SINCE THEY WERE INTRODUCED IN OCTOBER IN THE US PHOTO CD DEALERS SAY THAT IN MOST CASES DEMAND HAS BEEN LUKEWARM TO SPEED UP SALES KODAK SLASHED PRICES ON THE PLAYERS BY 50 EACH AND WILL SOON OFFER 50 COUPONS FOR THOSE WHO BUY PLAYERS BY SEPT 30 9303120073 930312 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION ON WEDNESDAY 11 BILLION CANADIAN DOLLARS US8837 MILLION OF 8 NONCALLABLE BONDS DUE JUNE 1 2023 PROCEEDS WILL BE USED TO REDEEM C925 MILLION OF GOVERNMENT BONDS MATURING APRIL 1 AND FOR GENERAL GOVERNMENT PURPOSES 9303120072 930312 INTERNATIONAL ABB ASEA BROWN SAYS NET INCOME FELL 17 IN 1992 TO 505 MILLION ZURICH ABB ASEA BROWN BOVERI LTD SAID 1992 NET INCOME FELL 17 TO 505 MILLION FROM 609 MILLION BECAUSE OF HIGHER TAX RATES AND FEWER CAPITAL GAINS THE RESULT FOR THE YEAR WAS THE FIRST TIME NET INCOME DECLINED AT THE POWER TRANSPORTATION AND INDUSTRIAL GIANT SINCE THE MERGER OF ASEA AB OF SWEDEN AND BROWN BOVERI OF SWITZERLAND IN 1988 THE COMPANY SAID OPERATING PROFIT DROPPED 5 TO 18 BILLION FROM 19 BILLION WHILE REVENUE ROSE 3 TO 296 BILLION FROM 2888 BILLION THE BUSINESS DOWNTURN WAS DUE MOSTLY TO RECESSIONARY WOES IN EUROPE AND NORTH AMERICA PERCY BARNEVIK PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID 1992 WAS A YEAR OF TRUTH FOR ABB SINCE WE WERE CONFRONTED WITH THE LONGEST AND DEEPEST RECESSION IN 45 YEARS IT WAS PARTICULARLY SEVERE IN SCANDINAVIA WHERE ABB HAS ALMOST 30 OF ITS ADDED VALUE AND ALSO AFFECTED ANGLOSAXON COUNTRIES NONETHELESS MR BARNEVIK SAID AT A NEWS CONFERENCE THAT THE COMPANY NOW IS A FINANCIALLY STRONGER COMPANY WITH NO DEBT AND STRONG MARKET POSITIONS IN ITS POWERGENERATION AND OTHER BUSINESSES AS WELL AS IN GEOGRAPHIC AREAS SUCH AS EASTERN EUROPE WHAT WE NEED NOW ARE BETTER VOLUMES IN WESTERN EUROPE AND NORTH AMERICA HE SAID MR BARNEVIK SAID THERE WERE POSITIVE SIGNS IN NORTH AMERICA ORDER INTAKE FOR CONSUMER GOODS IS INCREASING HE SAID 9303120071 930312 INTERNATIONAL GLAXO REPLACES CHIEF EXECUTIVE OFFICER AFTER RECENT STUMBLES INVESTORS RATTLED BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL LONDON GLAXO HOLDINGS PLC EUROPE'S BIGGEST DRUG COMPANY SAID IT WAS REPLACING ERNEST MARIO AS CHIEF EXECUTIVE AND DEPUTY CHAIRMAN WITH RICHARD SYKES CURRENTLY RESEARCH AND DEVELOPMENT DIRECTOR THE HIGHLY REGARDED MR SYKES 51 YEARS OLD WILL REPORT TO CHAIRMAN PAUL GIROLAMI INDEED HE NOW IS CONSIDERED THE HEIRAPPARENT TO THE 67YEAROLD MR GIROLAMI WHO HAS ANNOUNCED PLANS TO RETIRE IN JANUARY 1996 MR SYKES WHO WILL RETAIN HIS RESEARCH DUTIES WILL ASSUME PRIME TOPMANAGEMENT RESPONSIBILITY FOR THE US MARKET WHERE GLAXO FACES SOME OF ITS TOUGHEST CHALLENGES IN ANOTHER CHANGE FRANZ HUMER 47 WAS NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER MR HUMER IS NOW DIRECTOR IN CHARGE OF COMMERCIAL POLICY IN A STATEMENT MR MARIO CITED DIFFERENCES OVER RUNNING THE BUSINESS TO EXPLAIN HIS DEPARTURE WHICH HE INSISTED WAS AMICABLE MR MARIO WAS NAMED AN EXECUTIVE DIRECTOR IN 1988 HE BECAME CHIEF EXECUTIVE IN 1989 AND DEPUTY CHAIRMAN IN 1992 IN A TELEPHONE INTERVIEW MR GIROLAMI CALLED THE DIFFERENCES MORE A MATTER OF MANAGEMENT STYLE AND APPROACH THAN SPECIFIC STRATEGIC POINTS LOOKING TO THE FUTURE IT SEEMED A SORT OF POTENTIAL CONFLICT MOST OF THE BOARD DIDN'T FEEL WE SHOULD ENTERTAIN HE SAID THE MANAGEMENT SHAKEUP RATTLED INVESTORS GLAXO'S STOCK FELL 19 PENCE TO 668 PENCE 958 A SHARE IN HEAVY LONDON TRADING YESTERDAY GLAXO AMERICAN DEPOSITARY RECEIPTS FELL 875 CENTS TO 19 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SIGNS OF MANAGEMENT FRICTION HAD SURFACED IN RECENT MONTHS GLAXO SUFFERED A RARE PUBLIC HUMILIATION WHEN ARCHRIVAL SMITHKLINE BEECHAM PLC WON A KEY EUROPEAN PATENT COURT RULING IN NOVEMBER GAINING CERTAIN RIGHTS TO ONE OF GLAXO'S BESTSELLING PRODUCTS MR MARIO HAD OPENLY SCOFFED AT PROSPECTS OF A SMITHKLINE VICTORY THEN IN JANUARY GLAXO WAS HIT WITH A WARNING LETTER FROM THE US FOOD AND DRUG ADMINISTRATION OVER ADVERTISING OF ITS FLAGSHIP ULCER DRUG ZANTAC THE FDA DEMANDED THAT GLAXO CORRECT ALLEGEDLY MISLEADING CLAIMS ABOUT ZANTAC IN LETTERS TO THOUSANDS OF PHYSICIANS AND IN ADS IN MEDICAL JOURNALS MR MARIO INITIALLY RESISTED BUT THEN BACKED DOWN AVOIDING PUBLIC BICKERING WITH GOVERNMENTS OR REGULATORS HAS ALWAYS BEEN A HALLMARK OF MR GIROLAMI'S STYLE OVERTHECOUNTER DRUGS WERE ANOTHER ISSUE MR MARIO WANTED GLAXO TO DELVE INTO THE AREA GLAXO STOCK HAS BEEN WHIPSAWED BY RUMORS IT WAS PLANNING A HUGE SHARE OFFERING TO FINANCE THE PURCHASE OF A US DRUG MAKER STRONG IN OTC MEDICINES BUT MR GIROLAMI ADAMANTLY OPPOSES SUCH A MOVE SHOWING A PREFERENCE FOR TURNING SOME OF THE COMPANY'S OWN PRESCRIPTION DRUGS INTO OTC MEDICINES IN GENERAL HE WOULD RATHER FOCUS ON HIGHPROFIT ALBEIT HIGHRISK PRESCRIPTION MEDICINES RATHER THAN RUSHING INTO NONPRESCRIPTION DRUGS 9303120070 930312 INTERNATIONAL JAPANESE BUILDER IS ON SHAKY GROUND AFTER SPAT WITH MUCHNEEDED LENDER BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO KITARO WATANABE THE MAVERICK REAL ESTATE MOGUL WHO ONCE BACKED TEXAS FINANCIER T BOONE PICKENS JR IN HIS UNSUCCESSFUL BID TO TAKE OVER A PARTS SUPPLIER ASSOCIATED WITH TOYOTA MOTOR CORP HAS PICKED A FIGHT WITH A MORE FEARSOME OPPONENT HIS BANKER ANALYSTS SAY THE CONFRONTATION UNUSUAL FOR JAPAN JEOPARDIZES MR WATANABE'S ENTIRE CORPORATE EMPIRE WHICH INCLUDES SOME OF HAWAII'S SWANKIEST HOTELS AND COULD MEAN HUGE LOSSES FOR DOZENS OF MAJOR JAPANESE FINANCIAL INSTITUTIONS IF IT ISN'T SETTLED QUICKLY FAILURE OF THE REAL ESTATE COMPANY AND ITS AFFILIATES WITH DEBTS TOTALING 700 BILLION YEN 593 BILLION WOULD MAKE IT THE BIGGEST CORPORATE INSOLVENCY EVER IN JAPAN THIS IS AN EXTRAORDINARY DEVELOPMENT SAID J BRIAN WATERHOUSE A FINANCIAL ANALYST AT JAMES CAPEL PACIFIC LTD IT CASTS DOUBT ON WHETHER THE COMPANY CAN BE RECONSTRUCTED AT ALL THE DISPUTE PITS THE MAJOR SHAREHOLDERS OF AZABU BUILDING CO THE FARFLUNG REAL ESTATE CONCERN CONTROLLED BY MR WATANABE AND HIS FAMILY AGAINST MITSUI TRUST & BANKING CO AZABU'S LEADING LENDER SPOKESMEN FOR THE TWO COMPANIES CONFIRMED THURSDAY THAT AZABU SHAREHOLDERS VOTED MARCH 4 TO FIRE A TEAM OF EXECUTIVES THAT HAD BEEN DISPATCHED BY MITSUI TRUST A YEAR AGO TO SUPERVISE A RESCUE OF THE FINANCIALLY TROUBLED COMPANY AMONG THE OFFICIALS DISMISSED WERE FIVE MEMBERS OF AZABU'S BOARD INCLUDING COMPANY PRESIDENT TOSHIMI SHIBATA YOSHIAKI KOSHIMURA A SPOKESMAN FOR MITSUI TRUST SAID THE BANK WAS GIVEN NO REASON FOR THE DISMISSALS WE ARE SHOCKED WE HAVE DONE EVERYTHING IN OUR POWER TO PROVIDE ASSISTANCE HE SAID AZABU SPOKESMAN HACHIRO NISHIMURA SAID SHAREHOLDERS SACKED THE BANK OFFICIALS BECAUSE OF DIFFERENCES IN OPINION ABOUT HOW TO RESTRUCTURE THE COMPANY'S FINANCIAL OBLIGATIONS AND TOOK PARTICULAR ISSUE WITH MITSUI TRUST PROPOSALS TO SELL OFF AZABU'S REAL ESTATE HOLDINGS INCLUDING THE HAWAII PROPERTIES AZABU BUILDING'S DEBTS OUTSTANDING TOTAL ABOUT 500 BILLION YEN AND DEBTS OF ITS AFFILIATES TOTAL 200 BILLION MR NISHIMURA SAID ANALYSTS SAY THE COMPANY OWES AT LEAST 220 BILLION YEN TO MITSUI TRUST AND IS BEHIND ON INTEREST PAYMENTS TO MITSUI AND DOZENS OF OTHER CREDITORS INCLUDING THE LONGTERM CREDIT BANK OF JAPAN CHUO TRUST & BANKING CO MITSUBISHI TRUST & BANKING CO AND MANY FINANCE COMPANIES AZABU'S SUDDEN OUSTER OF THE RESCUE TEAM MAY BE A PLOY TO FORCE CREDITORS TO SETTLE MR WATANABE IS REGARDED AS A WILY AND UNPREDICTABLE NEGOTIATOR AND MITSUI TRUST IS PROPPING UP MANY OTHER SHAKY BORROWERS AND CAN ILL AFFORD A BLOWUP WITH AZABU ITS LARGEST CLIENT MR NISHIMURA SAID AZABU WILL DRAFT A NEW RESTRUCTURING PLAN ON ITS OWN BUT WOULDN'T DISCUSS DETAILS MR WATANABE WAS RANKED A FEW YEARS AGO AS ONE OF JAPAN'S RICHEST MEN BUT THE COLLAPSE OF THE NATION'S STOCK AND PROPERTY MARKETS HAS DEPLETED HIS FORTUNE FEW THINK HE NOW HAS THE RESOURCES TO CONTINUE OPERATING THE AZABU GROUP WITHOUT OUTSIDE HELP MR WATANABE WITH HIS WIFE AND SON OWNS LARGE PARCELS OF LAND IN TOKYO'S BEST NEIGHBORHOODS BUT THERE ARE ALMOST NO BUYERS FOR SUCH PROPERTIES NOW ANALYSTS SAY IT WOULD BE MUCH EASIER FOR THE SECRETIVE FINANCIER TO UNLOAD THE HAWAIIAN HOTELS HELD BY HIS AZABU USA CORP AFFILIATE THOSE HOLDINGS INCLUDE THE HYATT REGENCY WAIKIKI WHICH MR WATANABE BOUGHT FOR 245 MILLION IN 1986 9303120069 930312 MARKETING & MEDIA HOFFENBERG SENDS GUARDS TO WATCH ASSETS OF THE POST NEW YORK AP STEVEN HOFFENBERG SAID HIS EFFORT TO PURCHASE THE NEW YORK POST HAS BROKEN DOWN AND HE HAS SENT SECURITY GUARDS FROM HIS DEBT COLLECTION COMPANY TO WATCH THE NEWSPAPER'S ASSETS MR HOFFENBERG HAS BEEN TALKING WITH OWNER PETER KALIKOW WHO'S ENMESHED IN A PERSONAL BANKRUPTCY REORGANIZATION THE FUTURE OF THE NATION'S OLDEST CONTINUOUSLY PUBLISHED DAILY NOW COMES DOWN TO THE DECISION OF A US BANKRUPTCY COURT JUDGE TODAY MR HOFFENBERG WHO HAS BEEN OPERATING THE POST SINCE JANUARY WITH MR KALIKOW'S PERMISSION SAID A BANK AND MR KALIKOW ARE THROWING ROADBLOCKS IN THE WAY OF HIS DEAL TO SECURE THE 192YEAROLD PAPER A LAWYER FOR MR KALIKOW DID NOT RETURN A TELEPHONE CALL FOR COMMENT MR HOFFENBERG SAID AT A NEWS CONFERENCE AT THE OFFICES OF HIS DEBT COLLECTION COMPANY TOWERS FINANCIAL CORP THAT HE HAD SENT A PRIVATE SECURITY FORCE OF 10 GUARDS TO THE POST HE SAID THE GUARDS WERE NECESSARY BECAUSE ABRAHAM HIRSCHFELD WHO UNTIL A FEW DAYS AGO WAS WORKING WITH MR HOFFENBERG TO CONCLUDE THE PURCHASE HAD THREATENED TO FIRE THE POST'S SECURITY FORCE TO SAVE MONEY A CALL TO MR HIRSCHFELD WAS NOT RETURNED REPEATEDLY MR HOFFENBERG WAS ASKED IF HE WAS THREATENING TO CLOSE THE NEWSPAPER HE SAID HE WAS NOT BUT ADDED THAT THE PAPER CANNOT GO FORWARD BEING HELD HOSTAGE BY THOSE TRYING TO CONCLUDE ITS SALE MR HOFFENBERG SAID HIS LAWYERS YESTERDAY FORMALLY TRANSFERRED POSSESSION OF ALL OF THE POST'S ASSETS EXCEPT FOR REAL ESTATE FROM MR KALIKOW TO TOWERS FINANCIAL TO SECURE 6 MILLION HE ALREADY HAD INVESTED IN THE NEWSPAPER 9303120068 930312 WHO'S NEWS BOEING NAMES WOODARD TO BE THORNTON HEIR BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO TURNED TO AN EXPERIENCED MANUFACTURING HAND RONALD B WOODARD AS THE HEIR APPARENT AT ITS DOMINANT COMMERCIAL AIRCRAFT BUSINESS REINFORCING THE COMPANY'S CONCERN WITH MANUFACTURING EFFICIENCY AN INTERNAL MEMORANDUM CONFIRMED BY COMPANY OFFICIALS NAMED MR WOODARD THE 49YEAROLD HEAD OF PART OF ITS AIRLINERMANUFACTURING OPERATIONS TO SHARE RESPONSIBILITIES WITH DEAN D THORNTON LONGTIME PRESIDENT OF BOEING'S COMMERCIAL AIRPLANE GROUP COMPANY SPOKESMEN SAID THE MOVE WAS MADE TO ASSURE AN ORDERLY TRANSITION AT THE TOP OF BOEING'S MOST IMPORTANT BUSINESS BUT EMPHASIZED THAT THE 63YEAROLD MR THORNTON WILL REMAIN PRESIDENT OF THE DIVISION FOR THE FORESEEABLE FUTURE MR WOODARD WILL FORMALLY RETAIN HIS TITLE AS VICE PRESIDENT MR WOODARD'S LIKELY SUCCESSION OF THE WELLKNOWN MR THORNTON FOLLOWS BY LESS THAN SIX MONTHS BOEING'S NAMING OF PHILIP M CONDIT AS PRESIDENT A MOVE THAT ALSO REACHED INTO THE RANKS OF THE COMPANY'S AIRLINERPRODUCTION AND DESIGN OPERATIONS THE MOVES APPEAR TO SIGNAL SOMETHING AMOUNTING TO A GENERATIONAL AND PHILOSOPHICAL CHANGE IN BOEING MANAGEMENT WITHIN BOEING MR WOODARD IS KNOWN AS THE PRINCIPAL PROPONENT OF A MAJOR CAMPAIGN TO SLASH AIRCRAFT MANUFACTURING TIMES BY 50 AND MORE CUTTING WORK IN THE PROCESS AND ASSURING BUYERS MUCH FASTER DELIVERY MR WOODARD'S CALL HAS BEEN TO PRODUCE A SIXMONTH AIRPLANE VERSUS CURRENT PRODUCTION TIMES OF 13 MONTHS FOR BOEING'S SMALLER PLANES A SELFDESCRIBED INVENTORY FANATIC MR WOODARD WAS MOST RECENTLY VICE PRESIDENTGENERAL MANAGER OF THE RENTON DIVISION OF BOEING'S COMMERCIAL AIRCRAFT GROUP WHERE BOEING PRODUCES ITS 737 AND 757 NARROWBODY PLANES BUT MR WOODARD A CHEMIST BY TRAINING ALSO HAS HEADED SALES OPERATIONS ANALYSTS NOTE THAT THE ONLY OBVIOUS BLEMISH ON MR WOODARD'S BIOGRAPHY IS HIS TIME AT THE HELM OF BOEING CANADA DE HAVILLAND A TORONTOBASED AIRCRAFT PRODUCER IN WHICH BOEING RACKED UP MILLIONS IN LOSSES BEFORE SELLING IT HOWEVER COMPANY INSIDERS SAY MR WOODARD IS CREDITED WITH MAKING DIFFICULT DECISIONS IN PARING OPERATIONS DURING THAT TIME SOMETHING BOEING IS IN THE MIDST OF NOW THE COMPANY AS REPORTED PLANS TO CUT ITS WORK FORCE BY 28000 DURING THE NEXT TWO YEARS TWOTHIRDS OF THOSE REDUCTIONS WILL COME FROM THE COMMERCIAL AIRPLANE GROUP THE COMPANY HAS CHOPPED AIRLINER PRODUCTION RATES AS CASHSTRAPPED CARRIERS STRETCHED DELIVERY TIMES IN CONTRAST TO MR WOODARD'S PRODUCTION AND ENGINEERING TRAINING MR THORNTON HAS A FINANCIAL BACKGROUND EARTHY AND OCCASIONALLY GIVEN TO WEARING COWBOY BOOTS IN THE OFFICE MR THORNTON PRESIDED OVER BOEING'S BURGEONING GROWTH DURING THE AIRLINE BOOM OF THE LATE 1980S BUILDING THE LARGEST ORDER BOOK IN THE COMPANY'S HISTORY MR THORNTON HAS FACED NOT ONLY GROWING SALES BUT STIFFENING COMPETITION FROM AIRBUS INDUSTRIE THE EUROPEAN AEROSPACE CONGLOMERATE TO MEET THAT BOEING HAS SHARPLY INCREASED RESEARCH AND DEVELOPMENT OUTLAYS IN RECENT YEARS NOTABLY FOR ITS NEWEST MODEL THE 777 A LONGRANGE TWINJET THAT IS STILL IN THE DESIGN STAGE BOEING IN PRELIMINARY COPIES OF ITS ANNUAL REPORT YESTERDAY SAID IT EXPECTS COMPANYWIDE TO SPEND ABOUT 17 BILLION ON RESEARCH AND DEVELOPMENT THIS YEAR THIS WOULD BE ONLY SLIGHTLY LESS THAN THE 185 BILLION IT SPENT IN 1992 BUT UP SHARPLY FROM 142 BILLION IN 1991 AT THE SAME TIME BOEING SAID ITS BACKLOG OF FIRM ORDERS FOR COMMERCIAL PLANES SLID TO 8265 BILLION AT DEC 31 FROM 9283 BILLION A YEAR EARLIER CAPITAL SPENDING ON PLANT AND EQUIPMENT IS EXPECTED TO DROP ABNOUT 33 THIS YEAR BOEING SAID THESE OUTLAYS TOTALED 216 BILLION IN 1992 AND 185 BILLION IN 1991 THE DECLINE REFLECTS IN PART COMPLETION OF VARIOUS CONSTRUCTION PROJECTS RELATED TO THE NEW 777 MODEL 9303120067 930312 MARKETING & MEDIA NOTED WHO'S NEWS EDWARD E JOHNSON 49 YEARS OLD AND RICHARD T SCHLOSBERG III 48 WERE NAMED SENIOR VICE PRESIDENTS OF TIMES MIRROR CO BOTH WERE GROUP VICE PRESIDENTS LARRY W WANGBERG 50 A CORPORATE VICE PRESIDENT WAS NAMED A GROUP VICE PRESIDENT AND WILL BECOME A MEMBER OF THE MANAGEMENT COMMITTEE FOR THE PARENT HE CONTINUES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TIMES MIRROR CABLE TELEVISION ALSO PATRICK A CLIFFORD 51 CORPORATE VICE PRESIDENT FOR MEDICAL SCIENTIFIC TECHNICAL AND COLLEGE PUBLISHING WAS NAMED A GROUP VICE PRESIDENT 9303120066 930312 SURVEY FINDS US IS WORKING HARDER BUT ENJOYING IT LESS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICANS ARE WORKING HARDER AND ENJOYING IT LESS ACCORDING TO A HARRIS SURVEY THE PROPORTION OF AMERICANS WHO REPORT SLEEPING SEVEN TO EIGHT HOURS A NIGHT FELL TO 58 IN 1992 FROM 64 IN 1983 WHILE THE PROPORTION FEELING UNDER GREAT STRESS EITHER ALMOST EVERY DAY OR SEVERAL DAYS A WEEK ROSE IN THE PAST DECADE TO 33 FROM 28 THE STUDY SHOWS THAT OTHER HEALTH HABITS ALSO TOOK A TURN FOR THE WORSE SINCE THE 1980S AS FEWER PEOPLE ARE KEEPING SLIM EXERCISING VIGOROUSLY AND WATCHING THEIR DIETS QUITE LIKELY THE HEALTHY LIFESTYLES OF THE PAST DECADE WERE JUST A PASSING FAD LIKE HULAHOOPS SAID HUMPHREY TAYLOR PRESIDENT OF LOUIS HARRIS & ASSOCIATES INC PARTICULARLY TROUBLING MR TAYLOR SAID IS THAT AMERICANS ARE ABANDONING THE BETTER EATING AND FITNESS HABITS FOLLOWED IN THE EARLY TO MID1980S WHICH HELPED TO BRING ABOUT SHARP DROPS IN HEART DISEASE AND STEADY BOOSTS IN LIFE EXPECTANCY NOW HE SAYS AMERICANS ARE EATING MORE FATTY OR SALTY FOODS AND FEWER VEGETABLES FRUITS AND OTHER FOODS RICH IN FIBER AMONG THOSE SURVEYED 53 SAID THEY ATE THE RECOMMENDED AMOUNTS OF FIBROUS FOODS AND VEGETABLES DOWN FROM 59 IN 1983 SOME 51 SHIED AWAY FROM FAT COMPARED WITH 55 IN 1983 AND EXCESS SALT WAS AVOIDED BY 46 DOWN FROM 53 IN 1983 THE STUDY ALSO FOUND THAT ONLY ONE OF THREE ADULTS GETS ENOUGH EXERCISE ABOUT THE SAME AS A DECADE AGO THIS REPORT IS TERRIBLY DISTURBING SAID JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMERICAN MEDICAL ASSOCIATION HE ASCRIBED POORER HEALTH HABITS IN PART TO SOCIETY'S FRENZIED PACE ALTHOUGH STRESS LEVELS FOR OLDER AMERICANS HAVE BEEN HOLDING STEADY DURING THE PAST 10 YEARS THE REPORT SHOWED THAT THE IMPACT IS SEVERE ON THOSE AGED 1849 REGARDLESS HILLARY RODHAM CLINTON WHO RECEIVED A COPY OF THE SURVEY IN A PRIVATE MEETING WITH OLYMPIC GOLD MEDALIST FLORENCE GRIFFITHJOYNER SAID THAT PEOPLE MUST BE RESPONSIBLE FOR THEIR OWN HEALTH ALTHOUGH THE HEALTHCARE TASK FORCE SHE RUNS WON'T ANNOUNCE ITS PROPOSALS UNTIL MAY MRS CLINTON SAID PRESIDENT CLINTON IS LOOKING CLOSELY AT THE KINDS OF BEHAVIOR THAT ARE COSTING US MONEY RIGHT NOW SOME OF THOSE BEHAVIORS LIKE SMOKING AND DRINKING ARE IN RETREAT THE SURVEY REPORTS OVER THE PAST TWO YEARS THE PROPORTION OF NONSMOKERS EDGED UP TO 76 FROM 75 AND PEOPLE WHO NEVER DRINK ALCOHOL ROSE TO 40 FROM 39 IN THE PAST TWO YEARS THE NUMBER OF PEOPLE WEARING SEAT BELTS CLIMBED TO 70 FROM 69 DESPITE THESE GAINS SOCIETY STILL ABSORBS MORE THAN 100 BILLION A YEAR IN HEALTHCARE COSTS FROM TOBACCO AND ALCOHOL USE ACCORDING TO DR TODD AS WELL AS 60 BILLION MORE FROM OTHER CHANGEABLE LIFESTYLE FACTORS SUCH AS DRUG ABUSE AND DOMESTIC VIOLENCE 9303120065 930312 TECHNOLOGY & HEALTH IBM BLUE CROSS JOIN IN PLAN TO BOOST ELECTRONIC HANDLING OF MEDICAL CLAIMS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL THE BLUE CROSS AND BLUE SHIELD ASSOCIATION AND INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED A JOINT PROJECT AIMED AT INCREASING THE NUMBER OF MEDICAL CLAIMS THAT ARE PROCESSED ELECTRONICALLY THE NEW VENTURE REFLECTS THE SURGING INTEREST AMONG HEALTH INSURERS AND TECHNOLOGY COMPANIES IN WAYS TO REDUCE HEALTH COSTS BY ELIMINATING THE EXPENSE AND HASSLE OF FILING PAPER INSURANCE CLAIMS AN INSURANCE INDUSTRY COMMITTEE KNOWN AS THE WORKGROUP FOR ELECTRONIC DATA INTERCHANGE ESTIMATED LAST YEAR THAT ELECTRONIC CLAIMS PROCESSING COULD SAVE 4 BILLION TO 10 BILLION A YEAR IN ADMINISTRATIVE COSTS OFFICIALS INVOLVED IN THE BLUE CROSSIBM PROJECT SAID IT WOULD ENABLE DOCTORS AND HOSPITALS TO ELECTRONICALLY FILE CLAIMS TO BOTH BLUE CROSS PLANS AND COMMERCIAL INSURERS THROUGH ONE SYSTEM BLUE CROSS PLANS NOW PROCESS 444 MILLION CLAIMS A YEAR ELECTRONICALLY THROUGH A PROPRIETARY NETWORK THE BLUE CROSS PLANS HAVE FELT THEY WOULD LIKE TO OPEN UP THESE NETWORKS AND ALLOW OTHER PEOPLE TO GAIN ACCESS TO ELECTRONIC PROCESSING USING THOSE FACILITIES SAYS BOB SCHULTZ MANAGING DIRECTOR OF INTERPLAN TECHNOLOGY AT THE ASSOCIATION IN CHICAGO THE PLAN WOULD REDUCE THE NEED FOR PROVIDERS TO INVEST IN ADDITIONAL TECHNOLOGY TO PROCESS CLAIMS TO OTHER INSURERS BY INCREASING THE USE OF AVAILABLE HARDWARE AND SOFTWARE HE SAYS WE CAN INCREASE UTILIZATION OF THE NETWORK WITHOUT INCREASING COSTS PARTICIPATING PLANS AND IBM WOULD ALSO COLLECT A TRANSACTION FEE FOR PROCESSING THE COMMERCIAL CLAIMS THE NEW NETWORK WOULD COMPETE FOR SOME CLAIMS AGAINST A SIMILAR NETWORK OPERATED BY NATIONAL ELECTRONIC INFORMATION CORP A CONSORTIUM OWNED BY A GROUP OF COMMERCIAL INSURERS THAT IS TRYING TO ESTABLISH ITSELF AS THE MAJOR ELECTRONIC HEALTHCARE TRANSACTIONS COMPANY BUT HE SAID FEW MAJOR INSURERS SUCH AS TRAVELERS CORP AETNA LIFE & CASUALTY CO AND CIGNA CORP HAVE AGREED TO PARTICIPATE IN THE BLUE CROSS PROJECT THEY DEFINITELY HAVEN'T MADE THE SALE AT MAJOR COMMERCIAL PLAYERS EVEN THOUGH THEY'VE CALLED ON ALL OF THEM MR O'DONNELL SAYS IN ADDITION HE SAYS 24 BLUE CROSS PLANS ALREADY FILE SOME CLAIMS ELECTRONICALLY THROUGH THE COMMERCIAL NETWORK MR SCHULTZ SAYS THE NEW PROJECT HASN'T SIGNED ANY CONTRACTS WITH OUTSIDE COMPANIES YET THOUGH HE SAID RESPONSE HAS BEEN POSITIVE AND AGREEMENTS ARE EXPECTED TO BE COMPLETED SHORTLY IN ANY EVENT MR SCHULTZ SAID THE NETWORK WOULD ENABLE DOCTORS AND HOSPITALS TO FILE ALL THEIR CLAIMS TO LOCAL BLUE CROSS PLANS WHICH WOULD ELECTRONICALLY CULL THEIR CLAIMS WHILE THE OTHERS WOULD BE SORTED THROUGH A SWITCHING SYSTEM PROVIDED BY IBM AND ELECTRONICALLY DISPATCHED TO THE APPROPRIATE INSURANCE CARRIERS WE WANT TO BE THE UTILITY THAT CAN COSTEFFECTIVELY DELIVER THAT INFORMATION WHERE IT NEEDS TO GO SAYS PETER KORST WHO IS LEADING THE IBM PARTICIPATION IN THE PROJECT THE IBM PIECE OF THE NETWORK WILL BE PROVIDED THROUGH ADVANTIS CORP PART OF THE ARMONK NY COMPUTER CONCERN'S INTEGRATED SYSTEMS SOLUTIONS CO THE IBM TECHNOLOGY WILL ALSO PROVIDE INTERACTIVE TRANSACTION CAPABILITIES FOR THE SYSTEM WHICH IS EXPECTED TO HELP REDUCE DELAYS IN CLAIMS PAYMENT AND MAKE IT EASIER FOR INSURERS AND PROVIDERS TO ADOPT NEW INDUSTRY STANDARDS BEING DEVELOPED TO COLLECT AND PROCESS CLAIMS INFORMATION CURRENTLY INSURERS USE HUNDREDS OF DIFFERENT CLAIMS FORMS COMPLICATING FILING PROCEDURES AS WELL AS THE ABILITY TO VERIFY CLAIMS INFORMATION AND USE IT TO MONITOR MEDICAL CARE THE PROJECT CALLED EDIUSA WILL BEGIN AS A PILOT BETWEEN NOW AND THIS SUMMER INVOLVING 10 BLUE CROSS PLANS INCLUDING THOSE IN ARIZONA CONNECTICUT KENTUCKY AND MINNESOTA DEPENDING ON ITS SUCCESS THE PROJECT IS EXPECTED TO BE EXPANDED TO OTHER PLANS AFTER THAT THE SYSTEM WILL ALSO LIKELY COMPETE WITH A VARIETY OF VENDORS IN LOCAL MARKETS WHO PROVIDE ELECTRONIC CLEARINGHOUSE SERVICES FOR PROVIDERS FILING CLAIMS WITH VARIOUS INSURERS OTHER MAJOR COMPANIES ARE VYING TO PROVIDE ELECTRONIC CLAIMS PROCESSING SERVICES MCKESSON CORP'S PCS UNIT IS ESTABLISHING THE NATIONAL ELECTRONIC INFORMATION CORP'S ELECTRONIC NETWORK GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS UNIT AMR CORP'S AMRIS INFORMATION SERVICES UNIT AND AMERICAN TELEPHONE & TELEGRAPH CO ARE AMONG THE OTHER COMPANIES INTERESTED IN THE BUSINESS 9303120064 930312 DEBT RATINGS OF THREE BIGGEST AIRLINES ARE LOWERED BY S&P TO JUNK' STATUS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL STANDARD & POOR'S CORP LOWERED DEBT RATINGS OF THE THREE LARGEST US CARRIERS IN A MOVE THAT PUTS THE DEBT OF 97 OF THE BELEAGUERED AIRLINE INDUSTRY AT JUNK STATUS THE RATING AGENCY SAID IT WAS DOWNGRADING TO SPECULATIVE GRADE THE DEBT RATINGS OF AMR CORP UAL CORP AND DELTA AIR LINES THE MOVE IS BASED ON INDUSTRYWIDE OVERCAPACITY WEAK DEMAND AND OVERALL AN ADVERSE INDUSTRY ENVIRONMENT AND A NARROWED COMPETITIVE ADVANTAGE OVER SECONDTIER AIRLINES THE AGENCY SAID IN A STATEMENT THE ENTIRE INDUSTRY EXCEPT SOUTHWEST AIRLINES IS NOW RATED SPECULATIVE SAID PHILIP BAGGALEY OF S&P'S TRANSPORTATION RATINGS GROUP S&P HAD PREVIOUSLY LOWERED RATINGS ON THE OTHER CARRIERS THE MOVE IS YET ANOTHER BLOW TO AN INDUSTRY THAT'S SUFFERED WRENCHING LOSSES OF NEARLY 10 BILLION IN THE PAST THREE YEARS LAST YEAR'S BLOODY FARE WARS ONLY ADDED TO A SLIDE THAT BEGAN WITH THE GULF WAR AND HIGH FUEL PRICES IN 1990 THE DOWNGRADES ALSO CONTINUE A VICIOUS CYCLE AS THEY DRIVE UP THE AIRLINES' CAPITAL COSTS MAKING IT MORE EXPENSIVE FOR THEM TO BORROW MONEY INDEED THE AGENCY MENTIONED HIGH CAPITAL AND LABOR COSTS AT DELTA AMR'S AMERICAN AIRLINES AND UAL'S UNITED AIRLINES AMONG THE REASONS FOR ITS DOWNGRADE THE THREE LARGEST CARRIERS ARE NOW AT A DISADVANTAGE AGAINST WHAT NORMALLY WOULD BE CONSIDERED WEAKER RIVALS SUCH AS CONTINENTAL AIRLINES OR TRANS WORLD AIRLINES THOSE CARRIERS WHICH HAVE BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION HAVE LOWERED THEIR LABOR COSTS RENEGOTIATED THEIR DEBT AND COULD BECOME FORMIDABLE COMPETITORS AT AMR WHERE 114 BILLION OF SECURITIES ARE AFFECTED BY THE AGENCY'S MOVE TREASURER MICHAEL J DURHAM SAID WE ARE TROUBLED BY THE RATING AGENCY'S ACTION BECAUSE IT UNDERSCORES THE DISMAL FINANCIAL CONDITION OF THE US AIRLINE INDUSTRY HE ADDED HOWEVER THAT THE MOVE WON'T AFFECT AMR'S PLAN TO SHRINK THE AIRLINE AND FOCUS MORE ON NONAIRLINE ACTIVITIES AT DELTA WHERE 57 BILLION IN DEBT IS AFFECTED A SPOKESMAN EXPRESSED DISAPPOINTMENT BUT POINTED OUT WE'RE STILL INVESTMENT GRADE WITH MOODY'S DELTA'S RATINGS CUTS INCLUDE SENIOR DEBT LOWERED TO DOUBLEB FROM TRIPLEBMINUS EQUIPMENT TRUST CERTIFICATES CUT TO DOUBLEBPLUS FROM TRIPLEB PREFERRED STOCK CUT TO SINGLEBPLUS FROM DOUBLEBPLUS AND COMMERCIAL PAPER CUT TO SINGLEB FROM SINGLEA3 S&P CUT AMR'S SENIOR DEBT RATING TO DOUBLEBPLUS FROM TRIPLEB AND SUBORDINATED DEBT AND PREFERRED STOCK TO DOUBLEBMINUS FROM TRIPLEBMINUS RATINGS ON CERTAIN ISSUES OF AMR'S AMERICAN AIRLINES UNIT WERE LOWERED TOO EQUIPMENT TRUST CERTIFICATES WERE CUT TO TRIPLEBMINUS FROM TRIPLEBPLUS AND SENIOR DEBT TO DOUBLEBPLUS FROM TRIPLEB S&P LOWERED ITS RATINGS ON UAL'S SENIOR DEBT TO DOUBLEB FROM TRIPLEBMINUS AND ITS SUBORDINATED DEBT AND PREFERRED STOCK TO SINGLEBPLUS FROM DOUBLEBPLUS S&P ALSO DOWGRADED THE UNITED AIRLINES UNIT'S SENIOR DEBT TO DOUBLEB FROM TRIPLEBMINUS EQUIPMENT TRUST CERTIFICATES TO DOUBLEBPLUS FROM TRIPLEB AND SUBORDINATED DEBT TO SINGLEBPLUS FROM DOUBLEB ABOUT 43 BILLION IN UAL DEBT IS AFFECTED THE COMPANY DIDN'T HAVE ANY IMMEDIATE COMMENT 9303120063 930312 WHAT'S NEWS WORLDWIDE YELTSIN INFORMED WESTERN LEADERS THAT HE MAY DISSOLVE RUSSIA'S PARLIAMENT THE RUSSIAN PRESIDENT INDIRECTLY NOTIFIED CLINTON AND OTHER WORLD LEADERS THAT HE MAY DISSOLVE THE LEGISLATURE AND ASSUME EMERGENCY POWERS AS A LAST RESORT IN HIS STRUGGLE WITH HOSTILE LAWMAKERS US OFFICIALS SAID YELTSIN DISCUSSED HIS SITUATION LAST WEEK WITH GERMANY'S KOHL WHO THEN WROTE LETTERS TO LEADERS OF THE GROUP OF SEVEN INDUSTRIALIZED DEMOCRACIES THE OFFICIALS SAID THE G7 NATIONS PLAN TO CONSIDER ASSISTANCE TO YELTSIN DURING A MEETING THIS WEEKEND IN HONG KONG RUSSIAN DEPUTY PRIME MINISTER FYODOROV IS EXPECTED TO ATTEND RUSSIA'S CONGRESS REJECTED A PLAN FROM YELTSIN THAT WOULD HAVE PRESERVED A STRONG PRESIDENCY THE DEPUTIES ALSO VOTED AGAINST YELTSIN'S PROPOSAL TO HOLD A REFERENDUM ON POWERSHARING BUT COMPROMISES COULD EMERGE TODAY CLINTON OUTLINED A 20 BILLION PROGRAM TO HELP WORKERS AND CITIES AFFECTED BY POSTCOLD WAR DEFENSE CUTS AND BASE CLOSINGS THE PRESIDENT ALSO PLEDGED TO SPEND BILLIONS OF DOLLARS TO PROMOTE CIVILIAN USES OF MILITARY TECHNOLOGY HE ACTED ON THE EVE OF A SCHEDULED PENTAGON ANNOUNCEMENT OF NEW BASE CLOSINGS THE SENATE UNANIMOUSLY CONFIRMED JANET RENO AS THE FIRST FEMALE ATTORNEY GENERAL COMPLETING CLINTON'S CABINET THE FLORIDA PROSECUTOR IS DUE TO BE SWORN IN TODAY AS THE GOVERNMENT'S TOP LAW ENFORCEMENT OFFICER RENO THE FIRST DEMOCRAT TO HEAD THE JUSTICE DEPARTMENT IN 12 YEARS IS EXPECTED TO MAKE MANY POLICY CHANGES BOMB INVESTIGATORS ARE TRACKING TENS OF THOUSANDS OF DOLLARS TRANSFERRED FROM EUROPE INTO A NEW JERSEY BANK ACCOUNT HELD BY SUSPECTS IN NEW YORK'S WORLD TRADE CENTER BLAST OFFICIALS SAID MEANWHILE THE COMPLEX MAY BE ABLE TO REOPEN EARLIER THAN THE APRIL 1 TARGET DATE NORTH KOREA ANNOUNCED THAT IT IS PULLING OUT OF THE NUCLEAR NONPROLIFERATION TREATY TO PROTEST INTERNATIONAL EFFORTS TO FORCE INSPECTION OF ALLEGED SECRET NUCLEAR SITES IN A STATEMENT CARRIED BY ITS NEWS AGENCY THE PYONGYANG GOVERNMENT SAID IT WAS QUITTING THE TREATY BECAUSE OF ACTIONS BY THE US AND THE INTERNATIONAL ATOMIC ENERGY AGENCY THE HOUSE EXPRESSED OVERWHELMING SUPPORT FOR BANNING IMMIGRANTS INFECTED WITH THE AIDS VIRUS AND THE WHITE HOUSE SAID IT MIGHT HAVE TO ACCEPT THE POSITION OF CONGRESS DESPITE CLINTON'S OPPOSITION TO THE BAN THE SENATE LAST MONTH ADDED THE IMMIGRATION BAN TO A SPENDING MEASURE A NEW HEALTH POLL SHOWS THAT 78 OF THE PUBLIC BELIEVES THAT THE CURRENT HEALTHCARE SYSTEM DOESN'T MEET THE NEEDS OF MOST AMERICANS AND 74 SAY A COMPLETE OVERHAUL IS NEEDED TO COVER EVERYONE AND CONTROL COSTS THE WALL STREET JOURNAL/NBC NEWS POLL FINDS A SURPRISING WILLINGNESS TO ACCEPT SACRIFICES THE US INFANT MORTALITY RATE FELL TO A RECORD LOW BUT BLACK BABIES DIED AT MORE THAN TWICE THE RATE OF WHITES AND THE GAP IS GROWING OFFICIALS SAID THEY CREDITED MOST OF THE DROP IN THE RATE FOR 1990 THE MOST RECENT YEAR AVAILABLE TO THE USE OF DRUGS THAT HELP PREMATURE BABIES BREATHE BETTER THE US WON'T TOLERATE LONG DELAYS IN RESTORING DEMOCRATIC RULE IN HAITI SECRETARY OF STATE CHRISTOPHER SAID HAITI'S MILITARYLED REGIME HAS OPPOSED ANY EFFORTS TO BRING BACK OUSTED PRESIDENT ARISTIDE WHO WAS OVERTHROWN 18 MONTHS AGO CLINTON IS SCHEDULED TO MEET WITH ARISTIDE ON TUESDAY ITALIAN POLICE ARRESTED THREE MORE EXECUTIVES OF STATE PETROCHEMICAL GIANT ENTE NAZIONALE IDROCARBURI DECIMATING THE EXECUTIVE LEVEL OF THE COMPANY THE THREE ALLEGEDLY FALSIFIED BALANCE SHEETS AND MADE ILLEGAL POLITICAL DONATIONS ENI'S CHAIRMAN AND ANOTHER TOP COMPANY OFFICIAL WERE ARRESTED EARLIER IN THE WEEK A BELGRADE CORRUPTION SCANDAL WIDENED WITH REPORTS THAT A FORMER YUGOSLAV PREMIER RADOMAN BOZOVIC AND A FUGITIVE KNOWN AS ARKAN WERE IMPLICATED IN LUCRATIVE DEALS TO KEEP OIL FLOWING INTO YUGOSLAVIA DESPITE A UN EMBARGO THERE HAVE BEEN REPORTS IN THE PAST TWO WEEKS CONCERNING SMUGGLING OPERATIONS INVOLVING KICKBACKS THE IRAQIS HAVE REBUILT A HIGHTECH ENGINEERING PLANT THAT US NAVY CRUISE MISSILES DEMOLISHED IN JANUARY A UN NUCLEAR WEAPONS INSPECTOR SAID DIMITRI PERRICOS ALSO SAID BAGHDAD CONTINUES TO WITHHOLD A LIST OF FOREIGN NUCLEAR SUPPLIERS 9303120062 930312 THE WALL STREET JOURNAL / NBC NEWS POLL SEEKING A CURE MOST AMERICANS PLEDGE SACRIFICE TO HELP FIX THE HEALTH SYSTEM POLL SHOWS STUNNING BACKING FOR AN OVERHAUL GIVING THE PRESIDENT A BIG BOOST SUPPORT FOR EQUAL TREATMENT BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL MT LAUREL N J WE MAY HAVE ONE OF THE BEST HEALTH SYSTEMS IN THE WORLD SAYS SANDRA OWENS BUT IT HAS FAILED US MISERABLY IT CERTAINLY FAILED THE 46YEAROLD RETAIL WORKER WHEN HER EMPLOYER WAS BOUGHT OUT BY ANOTHER COMPANY HER INSURANCE PREMIUMS TRIPLED OVERNIGHT UNABLE TO AFFORD THE COVERAGE SHE HAD TO DROP IT SHORTLY THEREAFTER HER TEENAGE DAUGHTER DEVELOPED SERIOUS HEALTH PROBLEMS RUNNING UP HUGE BILLS THAT MS OWENS CAN'T PAY SHE STILL HAS NO MEDICAL COVERAGE ELEANOR LEOPOLD 48 ALSO THINKS THE US HEALTH SYSTEM STINKS EVEN THOUGH HER HEALTH INSURANCE COVERS 90 OF HER DOCTOR DENTIST AND PRESCRIPTIONDRUG BILLS SHE WORRIES THAT HER COVERAGE COULD VANISH IF HER HUSBAND AN EMPLOYEERELATIONS MANAGER LOSES HIS JOB OR THAT IT COULD BE DRASTICALLY CUT BACK IF HIS EMPLOYER FALLS ON HARD TIMES SHE WANTS THE SYSTEM CHANGED AND SHE IS WILLING TO PAY HIGHER TAXES TO CHANGE IT THAT KIND OF AGREEMENT BETWEEN PEOPLE AT OPPOSITE ENDS OF THE COVERAGE SPECTRUM REFLECTS A SWEEPING NATIONAL CONSENSUS A NEW NATIONWIDE WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT 78 OF THE PUBLIC BELIEVE THAT THE CURRENT HEALTHCARE SYSTEM DOESN'T MEET THE NEEDS OF MOST AMERICANS AND 74 SAY A COMPLETE OVERHAUL IS NEEDED TO COVER EVERYONE AND CONTROL COSTS MOREOVER THE SURVEY FINDS A SURPRISING WILLINGNESS TO ACCEPT SOME SACRIFICES OF THOSE SURVEYED 66 SAY THEY WOULD BE WILLING TO PAY HIGHER TAXES SO THAT EVERYONE COULD GET HEALTH INSURANCE 52 COULD ACCEPT LIMITS ON THE RIGHT TO CHOOSE THEIR OWN DOCTORS AND 46 COULD EVEN ACCEPT HIGHER INSURANCE DEDUCTIBLES AND COPAYMENTS AMERICANS BELIEVE THE SYSTEM NEEDS MAJOR CHANGE NOT JUST TINKERING OR WORK AROUND THE EDGES CONCLUDE ROBERT TEETER A REPUBLICAN AND PETER HART A DEMOCRAT WHO CONDUCTED THE POLL FOR THE JOURNAL AND NBC THE SURVEY RESULTS ARE GOOD NEWS FOR PRESIDENT CLINTON THEY SUGGEST THAT IF HE FULFILLS HIS PROMISE TO DELIVER A BOLD PLAN TO GUARANTEE UNIVERSAL ACCESS TO HEALTH CARE AND CURB THE RELENTLESS RISE IN MEDICAL COSTS AMERICANS ARE READY TO ACCEPT THE POSSIBLY UNPLEASANT TRADEOFFS INDEED MR CLINTON'S POLITICAL ADVISERS ARE ARGUING THAT HIS HEALTHCARE PACKAGE IS MORE LIKELY TO WIN PUBLIC SUPPORT IF IT IS SEEN AS A RADICAL SHIFT IN POLICY THEY SENSE THAT THE PUBLIC WILL HAVE CONFIDENCE IN A PLAN'S CHANCES OF TRULY SOLVING PROBLEMS ONLY IF IT APPEARS TO BE A SHARP DEPARTURE FROM THE CURRENT SYSTEM A PACKAGE SEEN AS SIMPLY MORE OF THE KIND OF TINKERING THAT HAS BEEN TRIED BEFORE WOULD BE HARD TO SELL THE ADVISERS CONTEND BUT MR CLINTON WILL STILL HAVE TO EDUCATE PEOPLE ABOUT THE NECESSARY TRADEOFFS AND FORCEFULLY EXPLAIN THE INTENDED BENEFITS HOWEVER MUCH AMERICANS CLAMOR FOR CHANGE THEY ARE OBVIOUSLY CONFUSED ABOUT WHAT THEY WANT IN HEALTH CARE AND THEIR CONFUSION COULD PROVE PERILOUS FOR THE PRESIDENT FOR CLINTON THE DEVIL WILL BE IN THE DETAILS MR TEETER SAYS AS SOON AS YOU GET TO THE SPECIFIC DETAILS OF IMPLEMENTATION YOU WILL CREATE A LOT OF OPPOSITION AN OBJECT LESSON IS CONGRESS'S 1988 EXPANSION OF MEDICARE TO INSURE SENIOR CITIZENS FOR A MODERATE EXTRA PREMIUM AGAINST THE COST OF CATASTROPHIC ILLNESS SOMETHING THAT LOOKED WILDLY POPULAR IN THEORY TURNED OUT TO BE WILDLY UNPOPULAR IN PRACTICE AND ANGRY SENIORS FORCED THE LAW'S REPEAL TO FURTHER EXPLORE AMERICANS' DESIRE FOR AND RESERVATIONS ABOUT HEALTHCARE REFORM THE JOURNAL ASKED MR HART TO BRING TOGETHER THIS WEEK A GROUP TO DISCUSS THE ISSUES A GROUP THAT INCLUDED MS OWENS MS LEOPOLD AND 10 OF THEIR NEIGHBORS HERE IN THE NEW JERSEY SUBURBS OF PHILADELPHIA MOST OF THEM WERE MIDDLECLASS WORKING PEOPLE THE VAST AND DISPARATE GROUP WHOSE STRONG SUPPORT THE PRESIDENT WILL NEED TO PUSH THROUGH HIS PROPOSALS FOUR OF THE 12 PEOPLE HAD NO HEALTH INSURANCE SIX HAD LACKED ANY COVERAGE AT SOME POINT IN THEIR LIVES THE GROUP WAS TOO SMALL TO BE A SCIENTIFIC SAMPLE BUT THE PARTICIPANTS' CONCERNS BOTH ECHO AND AMPLIFY THE FINDINGS OF THE NATIONWIDE POLL WHAT WE COULD FEEL IN NEW JERSEY WAS THE SENSE OF ANGST AND UNCERTAINTY THAT PEOPLE HAVE WHEN IT COMES TO HEALTH CARE IN AMERICA SAYS MR HART WHO CONDUCTED THE DISCUSSION THEIR DIFFICULTY IS IN REACHING A SINGLE DEFINED SOLUTION OF HOW TO DEAL WITH THE PROBLEM BOTH THE POLL AND THE DISCUSSION GROUP SUGGEST THAT DESPITE AMERICANS' INTENSE DISSATISFACTION WITH THE OVERALL HEALTH SYSTEM MOST OF THEM ARE HAPPY WITH THEIR OWN MEDICAL CARE ACCORDING TO THE POLL 74 ARE SATISFIED WITH THE QUALITY OF HEALTH CARE THEIR FAMILIES RECEIVE AND AN IDENTICAL PERCENTAGE IS SATISFIED WITH ITS AVAILABILITY THEIR BIGGEST CONCERN IS COST 56 ARE VERY OR SOMEWHAT DISSATISFIED WITH HOW MUCH THEY HAVE TO PAY FOR COVERAGE CYNTHIA WYNN A 32YEAROLD SINGLE MOTHER OF A FOURYEAROLD DAUGHTER SAYS SHE CAN BARELY AFFORD THE 200 A MONTH SHE MUST CONTRIBUTE TO ENROLL IN THE HEALTH MAINTENANCE ORGANIZATION HER COMPANY OFFERS BUT SHE LEARNED AN EVEN MORE PAINFUL LESSON A FEW YEARS AGO WHEN SHE WAS WITHOUT ANY COVERAGE AND HER DAUGHTER WAS DIAGNOSED AS HAVING DIABETES MS WYNN THINKS THE GOVERNMENT SHOULD PAY FOR EVERYBODY'S HEALTH CARE THAT'S A FAIRER WAY OF DOING IT SO EVERYONE GETS HEALTH CARE EQUALLY SHE SAYS SHE IS OPPOSED TO PAYING HIGHER TAXES FOR COVERAGE PEOPLE LIKE MYSELF A SINGLE PARENT WHO ONLY MAKES 15000 A YEAR SHOULD NOT BE TAXED BUT LESS FINANCIALLY PRESSED MEMBERS OF THE GROUP SAY THEY UNDERSTAND THE NEED FOR HIGHER TAXES AND ARE WILLING WITHIN REASON TO PAY THEM I WOULD PAY MORE MS LEOPOLD SAYS I PERSONALLY WOULD BUT THEN MY INCOME WOULD STAND IT FRANK GIARDINELLI A 35YEAROLD CARPENTER SAYS I SAY YOU EITHER HAVE SPECIFIC KINDS OF TAXES OR YOU RAISE TAXES BECAUSE TO IGNORE THE PLIGHT OF SOMEONE ELSE IN SOCIETY IS AT LEAST HOW I WAS RAISED IMMORAL BUT ANOTHER REASON EVEN PEOPLE WITH DECENT COVERAGE ARE WILLING TO ENTERTAIN SWEEPING CHANGES IS A LURKING SENSE OF THEIR OWN VULNERABILITY I'M WORKING AND I HAVE PRETTY GOOD COVERAGE MR GIARDINELLI SAYS BUT IF I WAS OUT OF WORK I'D BE IN A LOT OF TROUBLE MY COVERAGE COMES THROUGH A UNION SO IF I'M OUT OF WORK A CERTAIN TIME I LOSE MY BENEFITS TO HELP PAY FOR REVAMPING THE SYSTEM THE NATIONWIDE JOURNAL/NBC POLL FOUND OVERWHELMING SUPPORT FOR SIN TAXES ON CIGARETTES ALCOHOL OR OTHER PRODUCTS CONSIDERED HEALTH HAZARDS OF THOSE SURVEYED 70 SAID THEY COULD ACCEPT A WHOPPING 2 INCREASE IN THE TAX ON A PACK OF CIGARETTES 87 SAID THEY COULD ACCEPT A 50CENT INCREASE IN THE TAX ON A SIXPACK OF BEER AND 85 SAID THEY COULD ACCEPT A 1 INCREASE IN THE TAX ON A QUART OF LIQUOR OR WINE OVERALL 67 SAID IT WON'T BE POSSIBLE TO PROVIDE HEALTH COVERAGE FOR ALL AMERICANS WITHOUT RAISING TAXES IN TERMS OF BENEFITS PEOPLE WANT IT ALL THE SURVEY INDICATES THAT STRONG MAJORITIES FAVOR COVERAGE NOT ONLY FOR HOSPITAL AND DOCTOR FEES BUT ALSO FOR NURSINGHOME CARE PRESCRIPTION DRUGS AND DENTAL AND VISION CARE EVEN IF SUCH EXTENDED COVERAGE WOULD INCREASE THEIR OWN COSTS UNDER THE PROGRAM BUT PEOPLE ARE AMBIVALENT OVER THE GOVERNMENT'S ROLE IN THE HEALTH SYSTEM ALTHOUGH 71 ARE WILLING TO ACCEPT MORE GOVERNMENT INVOLVEMENT THAT DOESN'T INDICATE THAT THEY FAVOR A COMPLETE GOVERNMENT TAKEOVER INSTEAD 70 SAY THE SYSTEM SHOULD BE AN AMALGAMATION OF PUBLIC AND PRIVATE INSURERS WITH GOVERNMENT REGULATION TO CONTROL COSTS AND INSURE A MINIMUM LEVEL OF CARE FOR EVERYONE THE GOVERNMENT HAS TO TAKE CARE FOR THOSE WHO DON'T HAVE COVERAGE BUT IF WE'RE TALKING ABOUT ACROSSTHEBOARD INTERVENTION THE GOVERNMENT KNOWS NOTHING ABOUT THE MEDICAL PROFESSION MS OWENS SAYS THE GOVERNMENT'S PART SHOULD BE MAKING IT AVAILABLE TO EVERYONE WHO WANTS IT NEEDS IT AND CANNOT AFFORD IT RICHARD SOOY A 38YEAROLD MECHANIC WHO RATES HIS CURRENT MEDICAL COVERAGE AS APLUS FEARS THAT THE GOVERNMENT WOULD JUST MESS THINGS UP I DON'T THINK THE GOVERNMENT CAN HANDLE IT HE SAYS HE VEHEMENTLY OPPOSES MEDICAL PRICE CONTROLS AND SAYS THE SYSTEM SHOULD INSTEAD BE BASED ON INCENTIVES FOR THE MEDICAL PROFESSION TO TREAT UNCOVERED AMERICANS INSTEAD OF PENALIZING PEOPLE FOR ACHIEVING IN THIS FREEENTERPRISE SYSTEM WHY DON'T WE REWARD THE MEDICAL PROFESSION WITH TAX BREAKS AND TAX CUTS AND TAX INCENTIVES TO GIVE THEIR TIME HE ASKS BUT SUCH VIEWS ARE CLEARLY IN THE MINORITY THE POLL SHOWS AN OVERWHELMING 87 OF AMERICANS FAVOR GOVERNMENT LIMITATIONS ON DOCTOR AND HOSPITAL COSTS AND 63 SAY ALL EMPLOYERS EVEN SMALLBUSINESS OWNERS SHOULD BE REQUIRED TO PROVIDE HEALTH INSURANCE TO THEIR EMPLOYEES A MEASURE THAT PRESIDENT CLINTON'S ADVISERS SAY HE IS LIKELY TO INCLUDE IN HIS PLAN ALTHOUGH THE POLL BACKS UP THE NOTION THAT MANY AMERICANS UNDERSTAND THE TRADEOFFS THAT HEALTHCARE REFORM MIGHT ENTAIL IT ALSO FINDS THEM WILLING TO MAKE THOSE TRADEOFFS OF THOSE SURVEYED 56 SAY THE POSSIBLE ADVANTAGES UNIVERSAL COVERAGE NO LOSS OF BENEFITS FOR CHANGING JOBS OR BECOMING SERIOUSLY ILL LOWER COSTS TO THE GOVERNMENT AND ECONOMY OUTWEIGH THE POSSIBLE DISADVANTAGES HIGHER TAXES MORE GOVERNMENT INVOLVEMENT LESS CHOICE FOR PATIENTS AND 33 THINK THE DISADVANTAGES WOULD OUTWEIGH THE ADVANTAGES THE FEELING THAT THE BENEFITS WOULD BE WORTH THE PROBLEMS WAS EVIDENT IN THE NEW JERSEY GROUP THERE WAS A SENSE THAT THIS IS NOT A SOMETHINGFORNOTHING GAME MR HART OBSERVES THESE PEOPLE ARE WILLING TO MAKE CHANGES AND ADAPTATIONS EITHER IN TERMS OF WHAT THEY ARE PAYING OR WHAT THEY HAVE TO CONTRIBUTE OR THE WAY IN WHICH THEY RECEIVE HEALTH CARE THE ONE THING MOST OF THEM AND MOST AMERICANS AREN'T WILLING TO DO IS TO DO NOTHING ASKED HIS REACTION IF PRESIDENT CLINTON WERE TO DELAY DEALING WITH THE HEALTHCARE PROBLEM UNTIL LATE IN HIS TERM HOWARD MYERS A 47YEAROLD ADMINISTRATOR AND THERAPIST RESPONDS WITH ONE WORD IMPEACHMENT PERCENTAGE OF AMERICANS WHO SAY IT IS OR IS NOT POSSIBLE TO CONTROL COSTS AND COVER EVERYONE WITHOUT A COMPLETE OVERHAUL OF THE CURRENT HEALTHCARE SYSTEM PERCENTAGES FINDING THE FOLLOWING ACCEPTABLE AND UNACCEPTABLE AS PART OF A REVAMPED HEALTHCARE SYSTEM 9303120061 930312 US SAYS SHIPPING FIRMS VIOLATE YUGOSLAVIA BAN WASHINGTON THE TREASURY NAMED 25 SHIPPING FIRMS TO ITS LIST OF COMPANIES IT SAID ARE CIRCUMVENTING ECONOMIC SANCTIONS AGAINST YUGOSLAVIA AND SAID US FIRMS ARE FORBIDDEN FROM DOING BUSINESS THERE PUBLICATION OF THESE NAMES SENDS A CLEAR SIGNAL THE US WILL DENY THE SERBS AND MONTENEGRINS ANY BENEFIT OF REGULAR INTERNATIONAL COMMERCE SAID RICHARD NEWCOMB DIRECTOR OF THE TREASURY'S OFFICE OF FOREIGN ASSET CONTROL HE SAID THE ACTION IS PART OF A US LED EFFORT TO TIGHTEN SANCTIONS AGAINST YUGOSLAVIA THE TREASURY SAID THE FIRMS HAVE ATTEMPTED TO HIDE THE YUGOSLAV OWNERSHIP OF MANY OF THE 55 VESSELS THEY OWN MANAGE OR OPERATE BY USING FOREIGN FRONT COMPANIES CHANGING VESSEL NAMES AND REFLAGGING SHIPS TWO MALTESE FIRMS MILENA SHIP MANAGEMENT CO AND RIGEL SHIPMANAGEMENT LTD MANAGE 40 OF THOSE SHIPS ALL TOLD THE TREASURY HAS FROZEN 525 MILLION IN YUGOSLAV ASSETS SINCE THE SANCTIONS WERE IMPOSED LAST MAY INCLUDING 25 MILLION IN RECENT DAYS SEVEN YUGOSLAV SHIPS HAVE BEEN SEIZED IN US PORTS VIOLATORS OF THE EMBARGO ARE SUBJECT TO FINES AND IMPRISONMENT 9303120060 930312 CORPORATE CONTROLLERS SEE STABLE EMPLOYMENT FOR NEXT SIX MONTHS MONTVALE NJ THE NATION'S CORPORATE CONTROLLERS EXPECT EMPLOYMENT LEVELS TO STABILIZE OVER THE NEXT SIX MONTHS ACCORDING TO A SURVEY THE INSTITUTE OF MANAGEMENT ACCOUNTANTS SURVEYED MEMBERS OF ITS CONTROLLERS COUNCIL CONTROLLERS ARE THE EXECUTIVES RESPONSIBLE FOR THEIR COMPANIES' BUDGETS OF THE RESPONDENTS 41 SAID THEIR COMPANIES' EMPLOYMENT LEVELS WOULD REMAIN THE SAME FOR THE NEXT SIX MONTHS 33 SAID LEVELS WOULD INCREASE AND 26 EXPECTED A DECREASE MOST RESPONDENTS 57 PREDICTED EMPLOYMENT GROWTH ON THE PRODUCTION LINE ONLY 19 EXPECTED INCREASED HIRING IN MANAGEMENT WHICH THE INSTITUTE CALLED FURTHER EVIDENCE OF A PERMANENT DOWNSIZING IN BUSINESS MANAGEMENT THE 90000 MEMBER INSTITUTE HAD 31 RESPONSE RATE ON ITS SURVEY OF 3000 CONTROLLERS 9303120058 930312 TECHNOLOGY NASA CHIEF SAYS CUTS WON'T GROUND ASTRONAUTS WASHINGTON THE US ISN'T GIVING UP ON PLANS TO HAVE ASTRONAUTS LIVING IN SPACE BY THE YEAR 2000 DESPITE ORDERS TO SCALE DOWN THE SPACE STATION TO SAVE MONEY NASA ADMINISTRATOR DANIEL GOLDIN SAID THE WHITE HOUSE HAS SAID IT WANTS A SPACE STATION THAT WOULD BE INHABITED BY HUMANS THE HEAD OF THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION TOLD REPORTERS HE SAID THAT EVEN THOUGH THE SPACE STATION IS BEING REDESIGNED AND SCALED DOWN IT'S OUR GOAL TO HAVE PERMANENT HUMAN PRESENCE SINCE PRESIDENT CLINTON ORDERED CUTS IN THE SPACE STATION LAST MONTH IT HAD BEEN UNCLEAR WHETHER ITS MISSION ALSO WAS BEING PARED FROM AN ORBITING LAB IN WHICH ASTRONAUTS WOULD LIVE TO ONE THAT ONLY WOULD BE VISITED MR GOLDIN EXPANDING ON AN EARLIER EXPLANATION OF REDESIGN PLANS SAID A NASA TEAM WOULD CONSIDER A RANGE OF OPTIONS INCLUDING A MINIMAL DESIGN THAT MIGHT NOT PROVIDE FOR A PERMANENT PRESENCE FOR ASTRONAUTS BUT HE MADE CLEAR THAT KEEPING ASTRONAUTS ON BOARD FULL TIME IS A PRIORITY IN THE REDESIGN OPTIONS THAT ARE TO BE READY FOR THE WHITE HOUSE JUNE 1 9303120057 930312 SCHLOCK TALK SURPLUS IS IN THE EYE OF 30000 BEHOLDERS ANNUAL LAS VEGAS TRADE SHOW IS WHERE THE THRIFT SHOPS GET STUFF IN WHOLESALE LOTS BY ERIK LARSON STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS NEV IT'S TIME NOW FOR THE AX MAN TO GO SHOPPING DAVID GRAY COOWNER OF AX MAN SURPLUS ST PAUL MINN HAS COME TO LAS VEGAS FOR WHAT MAY BE THE TACKIEST OF TRADE SHOWS 4500 BOOTHS DISPLAYING SAMPLES OF CHEAP OR SURPLUS MERCHANDISE AVAILABLE IN BULK AT UNBELIEVABLY LOW PRICES HE HUNTS THE MOST OBSCURE PRODUCTS FOR HIS AX MAN STORES NEED AN AIRLINER ESCAPE SLIDE HE HAS 30 OF THEM IN HIS WAREHOUSE HIS FIRST STOP IS A BOOTH OFFERING A HODGEPODGE OF TOOLS AND MECHANICAL STUFF THAT DIDN'T SELL THE FIRST TIME AROUND PEOPLE LOVE THIS KIND OF CRAPOLA HE EXCLAIMS THEN REALIZES HE IS STANDING NEXT TO THE OWNER HE APOLOGIZES AND ASKS HIS TRADEMARK QUESTION WHAT'S THE WORST THING YOU'VE GOT WE'RE TALKING SCHLOCK ALTHOUGH OFFICIALLY THE RETAIL INDUSTRY IDENTIFIES THE GOODS DISPLAYED AT THE SHOW AS GENERAL MERCHANDISE OR SURPLUS LAST WEEK 30000 RETAILERS AND WHOLESALERS FROM AROUND THE WORLD AND BROOKLYN CONVERGED ON LAS VEGAS FOR THIS CHANCE TO PICK OVER CHEAP TOYS COSTUME JEWELRY AND PRODUCTS THAT HAVE ONE FOOT PEG PINION OR PLUG IN THE JUNKYARD THRIFT SHOPS DO THEIR SHOPPING HERE SO DO FLEA MARKET OPERATORS AND BOTTOMRUNG JUNK MAILERS THIS IS THE PLACE TO COME THEY KNOW FOR LARGE LOTS OF RUBBER SNAKES PURPLEHAIRED TROLLS NOVELTY CONDOMS AND EXCESS DUTCH CIVILDEFENSE URINALS EVERYTHING CAN BE SOLD SAYS JERRY GUITE OWNER OF SEATTLE'S AAA LIQUIDATING WHICH HAS A BOOTH HERE EVERYTHING'S GOT A PRICE MR GUITE IS AN UNDERTAKER AS LIQUIDATORS ARE KNOWN IN THE TRADE SO NAMED FOR THEIR ABILITY TO MOVE DEAD MERCHANDISE IN HIS BESTEVER DEAL HE SAYS HE BOUGHT A TRUCKLOAD OF TAIWANESE TELEPHONES FOR 41000 AND SOLD THEM THE SAME DAY FOR 82000 HIS BOOTH IS JAMMED WITH OUTCAST MERCHANDISE INCLUDING A MUSIC BOX THAT PLAYS A FUNERAL MARCH AND A COLLECTION OF TOTE BAGS EMBLAZONED NURSES ACROSS AMERICA AND GESTETNER COPIERS HE KNOWS WHERE HE STANDS IN AMERICA'S RETAIL HIERARCHY I'M THE LAST GUY YOU SEE BEFORE YOU TAKE IT TO THE DUMP INDEED THE LIQUIDATORS AND CLOSEOUT MAVENS LIKEN WHAT THEY DO TO CONSERVATIONISM EVERY PRODUCT HERE NO MATTER HOW LOWLY GETS A SECOND THIRD PERHAPS FOURTH CHANCE EVEN MOTEL SOAPS BAZAAR INC OF CICERO ILL OFFERS 149000 BARS OF SOAP MARKED EMBASSY SUITES JUNK FOR JOY OF BURBANK CALIF DISPLAYS PLATFORM SHOES CUSTOMERS RETURNED TO SEARS AT A PAST SHOW ONE DEALER SOLD ARMY SURPLUS COFFINS HE HAD THEM STANDING UP RECALLS WALTER FLETCHER OF WALTER FLETCHER INC IN SANTA MONICA CALIF HE HAS RUN THE ANNUAL ASSOCIATED SURPLUS DEALERS/ASSOCIATED MERCHANDISE DEALERS TRADE SHOW SINCE ITS FIRST INCARNATION IN 1961 YOU COULD STEP INSIDE AND BE PHOTOGRAPHED IN THE EARLY YEARS MOST EXHIBITORS WERE SURPLUS DEALERS OR LIQUIDATORS NOW MANY SELL FAUX SURPLUS DESIGNED AND MANUFACTURED TO BE SOLD THROUGH ARMYNAVY STORES OTHERS OFFER DIRTCHEAP TOYS AND TRINKETS MADE TO SELL THROUGH SOCALLED DOLLAR OUTLETS THE OLD GUARD HOWEVER STILL OCCUPIES THE MOSTCOVETED TURF AT THE SHOW THE EXHIBITION HALL AT THE LAS VEGAS HILTON ONE OF FOUR GIGANTIC HALLS AT DIFFERENT HOTELS TAKEN UP BY THE SHOW HERE FOR EXAMPLE ONE FINDS THE AMERICAN EXCESS CORP OF MIAMI WHERE CHARLIE GELLERT SALES MANAGER IN CHARGE OF ELECTRONIC PURCHASING DECLARES THE COMPANY'S MOTTO NOTHING SUCCEEDS LIKE EXCESS THE BOOTH IS PACKED WITH SAMPLES OF ELECTRONIC COMPONENTS UNLOADED BY MANUFACTURERS WHO COULDN'T USE THEM AN INDUSTRIAL VALVE OCCUPIES A PROMINENT POSITION ON A DISPLAY TABLE THIS VALVE WOULD WHOLESALE FOR MAYBE 80 OR 90 BUCKS MR GELLERT SAYS WE WOULD SELL IT FOR 15 WE GOT IT FOR FIVE HE DOESN'T KNOW WHAT IT DOES HOWEVER ELECTRONIC CAPACITORS ARE HIS BREAD AND BUTTER BUT HE DOESN'T KNOW WHAT THEY DO EITHER THE LESS YOU KNOW THE BETTER HE EXPLAINS NEWCOMERS WIND UP IN THE EXHIBIT HALL OF THE RIVIERA HOTEL HERE CARL VAN HAGHT OWNER OF WIN WIN TRADING CO IN HERMOSA BEACH CALIF STANDS BESIDE A 1000POUND BALE OF USED UNDERWEAR AND OTHER SECONDHAND CLOTHING THAT HE IS SELLING FOR 50 CENTS A POUND MR VAN HAGHT SAYS HE WILL SELL ANYTHING IN BULK HE HAS SOLD UREA AND CEMENT ONCE HE CLAIMS HE NEARLY SOLD 100000 SHEEP FOR RITUAL SACRIFICE IN THE MIDDLE EAST A SIGN AT HIS BOOTH READS GRUNGE IS IN THE REFERENCE IS TO THE TRENDY USE OF SHABBY JEANS AND FLANNEL SHIRTS TWO WOMEN FROM A WISCONSIN THRIFT SHOP ASK MR VAN HAGHT HIMSELF CLAD IN GRUNGE ABOUT WHERE HE GOT THE BALED CLOTHING SOME OF IT COMES FROM PRISONS HE SAYS SOME OF IT FROM PEOPLE WHO ARE DECEASED HE QUICKLY ADDS THERE'S HUNDREDS OF THOUSANDS OF PEOPLE WHO DIE EVERY DAY WHY NOT RECYCLE IT THE WOMEN EXAMINE A FEW SAMPLES THEN GO ON THEIR WAY THE TRADE SHOW HAS A SINISTER EDGE EVERY AISLE SEEMS TO HAVE AT LEAST ONE BOOTH SELLING COMBAT KNIVES MANY PURVEYORS OF SURPLUS OFFER DISARMED HAND GRENADES MILITARY SUPPLY CORP HERE FROM LACENTER WASH DISPLAYS MILITARY UNIFORMS AT ITS EXTENSIVE HILTON EXHIBIT BUT JIM MOORE THE COMPANY'S CHIEF EXECUTIVE OFFICER SAYS HE CAN ALSO SELL YOU SOME 50CALIBER LONGRANGE SNIPER RIFLES IN FACT HE HAS ONE UPSTAIRS IN HIS HOTEL ROOM AND PLANS TO DEMONSTRATE IT TO A POTENTIAL CUSTOMER A VENEZUELAN COLONEL LATER IN THE DAY IT'S CALLED REACH OUT AND TOUCH SOMEONE AT 2000 YARDS' MR MOORE SAYS SHOWING A REPORTER A DRAWING OF THE WEAPON IN A COMPANY CATALOG WOULD YOU LIKE TO COME OUT AND SHOOT IT THE COLONEL HOWEVER DOESN'T WAKE FROM HIS AFTERNOON NAP IN TIME AND MR MOORE CALLS OFF THE DEMONSTRATION ON THE OTHER HAND THERE IS NOTHING AT ALL SINISTER ABOUT THE AX MAN'S BOOTH ITS ECLECTIC DISPLAY INCLUDES ROUND PLUGS OF ASTROTURF LEFT OVER FROM THE MANUFACTURE OF OFFICE PUTTING GREENS AND PERMAHOLE AN INFLATABLE TUBE MADE TO KEEP ICEFISHING HOLES FROM FREEZING OVER SO FAR AT THE SHOW HE HAS SOLD 300 PERMAHOLES HE HAS ALSO UNLOADED A SUPPLY OF DINNERBELL TRIANGLES LEFT OVER FROM THE CALGARY OLYMPICS IN TURN HE HAS PURCHASED 50000 BABYBUGGY WHEELS 24000 SOVIET ARMY COAT BUTTONS 8000 MILITARY PLASTER OF PARIS BANDAGES IDEAL FOR MUMMY COSTUMES 3000 DOLLS' HEADS AND 300 POUNDS OF UNMATCHED SOCKS TO MR GRAY A TALL CHEERFUL MAN WITH A GROUCHOESQUE MUSTACHE NO PRODUCT IS TOO HOMELY OR USELESS SEE OUR STUFF IS HE GRIMACES HIS HANDS SEARCH THE AIR FOR THE RIGHT WORD OUR STUFF IS TOUCHYFEELY STUFF IT'S STUFF THAT TUGS AT THE SENSIBILITIES OF EVERY BUYER HERE HE PULLS OUT A COLLECTION OF GLEAMING METAL RINGS YOU HAVE TO FEEL THESE HE SAYS SAVORING THEIR HEFT AREN'T THESE MARVELOUS THEY'RE PARACHUTE RINGS AT ANOTHER HILTON BOOTH HE BUMPS INTO SCOTT MCCAUSLAND OF AMERICAN SCIENCE & SURPLUS WHICH IS IN SKOKIE ILL MESSRS GRAY AND MCCAUSLAND OFTEN SHARE THE PRODUCTS THEY ACQUIRE THEY BEGIN SCROUNGING IN TANDEM GOD EXCLAIMS LINDA MAHONEY THE BOOTH MANAGER AS SHE STEPS OUT OF THEIR WAY THEY'RE LIKE VULTURES THE TWO MEN DISCUSS OTHER BOOTHS THEY HAVE SEEN THE AX MAN LEARNS HE MAY HAVE OVERLOOKED AN INTERESTING ODDITY AT THE VERY FIRST BOOTH HE VISITED HE RUSHES BACK HOW DID I MISS THIS HE WONDERS IT IS A STACK OF SANDPAPER NOT JUST ANY OLD SANDPAPER THESE ARE LARGE SHEETS WHOSE ABRASIVE SIDE IS A BRILLIANT NEON ORANGE NEON SANDPAPER HE SAYS CLEARLY AWESTRUCK WITHOUT HESITATION HE ORDERS 7200 SHEETS IN FOUR BRIGHT COLORS WONDERFUL HE SAYS FEEL THIS THIS STUFF IS WONDERFUL 9303120056 930312 US PRESENCE IS RESUMED IN VENEZUELA'S OIL FIELDS HOUSTON PRODUCTION HAS BEGUN AT THE FIRST VENEZUELAN OIL FIELD TO BE OPERATED BY A US COMPANY SINCE THE INDUSTRY WAS NATIONALIZED IN THE MID1970S A JOINT VENTURE BETWEEN BENTON OIL & GAS CO OF OXNARD CALIF AND VINCCLER CA ITS VENEZUELAN PARTNER HAS BEGUN PRODUCING 2100 BARRELS OF OIL A DAY FROM FOUR WELLS IN THE REACTIVATED URACOA FIELD IN EASTERN VENEZUELA THE TARGET BY THE END OF THE YEAR IS ABOUT 4000 BARRELS A DAY SAID GREGORY S GRABAR MANAGER OF CORPORATE DEVELOPMENT FOR BENTON THE URACOA IS ONE OF THREE FIELDS COMPRISING THE SOUTH MONAGAS UNIT IN EASTERN VENEZUELA AN OPERATING SERVICE CONTRACT FOR THE UNIT WAS AWARDED THE BENTONVINCCLER VENTURE LAST JULY BY LAGOVEN AN AFFILIATE OF PETROLEOS DE VENEZUELA THE NATIONAL OIL COMPANY ACCORDING TO BENTON WHICH IS THE OPERATOR AND HAS A 50 INTEREST THE JOINT VENTURE EXPECTS TO INVEST AN ESTIMATED 75 MILLION OVER THE NEXT SEVEN YEARS TO FULLY REACTIVATE AND DEVELOP ALL THREE FIELDS IN THE UNIT 9303120055 930312 POTOMAC WATCH CLASS OF '92 THE NONREVOLT OF THE MASSES BY PAUL A GIGOT SPEAKER OF THE HOUSE TOM FOLEY LIKES TO TELL A STORY ABOUT HIS WELCOME TO CONGRESS IN 1964 MICHAEL KIRWAN A BARON OF THE DAY WOULD TELL FRESHMEN THEY SHOULD AVOID ONE MISTAKE AT ALL COSTS THINKING FOR YOURSELF MR FOLEY TOLD THAT STORY TO THE 63 FRESHMEN DEMOCRATS LAST FALL AND IT SEEMS TO HAVE WORKED THE MEMBERS OF THE CLASS OF 1992 HAVE STOPPED THINKING ABOUT THE REFORM THEY TALKED ABOUT LAST YEAR TO GET ELECTED THE FRESHMEN WHO WERE GOING TO SHAKE UP THE HOUSE HAVE SO FAR BEEN SHAKEN DOWN BY THIS TIME IN 1975 DEMOCRATIC FRESHMEN IN THE HISTORIC WATERGATE CLASS HAD TOPPLED COMMITTEE TITANS AND REWRITTEN HOUSE RULES THIS YEAR'S CLASS MEEKLY ACCEPTS EVEN LEADERSHIP PROPOSALS TO LIMIT FLOOR DEBATE THE WATERGATE CLASS REWROTE THE BUDGET LAWS IN A WAY THAT GAVE US THE CURRENT SPENDING MESS THE CLASS OF 1992 IS WALKING IN LOCKSTEP WITH THE LEADERSHIP ON NEARLY EVERY BUDGET VOTE THE WASHINGTON SWAMP THEY VOWED TO DRAIN HAS BECOME A HOT TUB THE TRANSFORMATION REFLECTS BOTH COOPTATION BY THE HOUSE LEADERSHIP AND THE INCENTIVES OF MODERN WASHINGTON IN A PREEMPTIVE SCHMOOZE SPEAKER FOLEY AND FELLOW LEADERS HELD THREE POSTELECTION MEETINGS WITH FRESHMEN THEY WERE ADVISED TO AVOID AN ORIENTATION THAT THE REFORMIST HERITAGE FOUNDATION SPONSORED AS AN ALTERNATIVE TO THE USUAL HARVARD MIND MELD NO DEMOCRATS SHOWED THEN THE CARROTS OF COMMITTEE SLOTS WERE OFFERED FIVE FRESHMEN LANDED ON ENERGY AND COMMERCE AKA JOHN DINGELL'S SCHOOL OF PERPETUAL INCUMBENCY AND PAC ACCUMULATION OF THE 38 DEMOCRATS ON PUBLIC WORKS AN AMAZING 15 ARE FRESHMEN THE POLITICAL BENEFITS OF PRESIDENT CLINTON'S STIMULUS SPENDING WILL SOON TRICKLE DOWN TO THEIR DISTRICTS MANY FRESHMEN DIDN'T NEED PERSUASION BECAUSE THEY ARE SIMPLY YOUNGER VERSIONS OF THE POLITICAL CAREERISTS THEY REPLACED NEW REP PETER DEUTSCH A 35YEAROLD FROM A SAFELY DEMOCRATIC DISTRICT IN SOUTH FLORIDA HAS SPENT HIS ADULT LIFE IN LAW SCHOOL OR THE STATE LEGISLATURE HE RAN AGAINST AN OPPONENT FOR ACCEPTING PUBLIC PERKS BUT HAS YET TO BE HEARD FROM IN WASHINGTON A DIRTY SECRET OF THE 63 DEMOCRATIC FRESHMEN IS THAT 52 HAVE ALREADY HELD SOME POLITICAL OFFICE THEY ARE CLASSIC INSIDERS THE SAME IS TRUE OF 31 OF 47 REPUBLICANS ERIC FINGERHUT IS A REBEL WHO IS PROVING WHO IS THE RULING CLASS AT 33 THE FORMER OHIO STATE LEGISLATOR HAS TAKEN THE REFORM LEAD BUT AT A PRICE HIS AGITATION PROBABLY COST HIM A SEAT ON PUBLIC WORKS HIS FIRST COMMITTEE CHOICE THE LEADERSHIP WAS SAYING THAT FROM THEIR EXPERIENCE WE WILL BENEFIT IF WE CAN SHOW THAT A DEMOCRATIC MAJORITY WILL END GRIDLOCK MR FINGERHUT SAYS PUBLIC UNHAPPINESS WITH CONGRESS WILL THEN MELT AWAY MANY DEMOCRATS THINK MR FINGERHUT IS HAPPY TO PASS THE CLINTON PROGRAM BUT HE ALSO WANTS TO RESPOND TO A PUBLIC THAT IS ANGRY ABOUT A CONGRESS THAT SEEMS ENTRENCHED HE HAS BEEN PAYING ATTENTION TO ROSS PEROT WHO IS NOT QUIET AND TO REPUBLICAN FRESHMEN WHO ARE PROVING TO BE FAR LESS DOCILE THAN DEMOCRATS MR FINGERHUT IS UNJADED ENOUGH TO BE OPTIMISTIC DESPITE EVIDENCE THAT EVEN TOKEN SYMBOLIC REFORM IS GOING NOWHERE ONLY 19 DEMOCRATIC FRESHMEN VOTED IN JANUARY TO KILL THE USELESS SELECT COMMITTEE ON NARCOTICS WHEN MR FINGERHUT AND A COLLEAGUE PROPOSED TO REPEAL CONGRESS'S AUTOMATIC INFLATIONADJUSTED PAY RAISE LAST MONTH ONLY SIX OTHER FRESHMEN SIGNED ON THE HOUSE LEADERSHIP STONEWALLED UNTIL THE SENATE PASSED IT AND THE HOUSE HAD NO CHOICE BUT TO FOLLOW MORE BASIC CHANGES LOOK LIKE A PIPE DREAM MR FINGERHUT'S FRESHMAN TASK FORCE ON REFORM IS SCHEDULED TO REPORT LATER THIS MONTH BUT THE LEADERSHIP WILL REFER ITS PRODUCT TO ANOTHER COMMITTEE WHICH WILL PROBABLY IGNORE IT AND DEMOCRATIC LEADERS HAVE ALREADY SAID THAT ANY CHANGES IN CAMPAIGNFINANCE LAWS WON'T APPLY UNTIL 1996 AFTER THE NEXT ELECTION THIS IS ASSUMING THAT FINANCE REFORM WRITTEN BY INCUMBENTS WON'T SOMEHOW BENEFIT INCUMBENTS EVEN MR FINGERHUT'S TASK FORCE COCHAIRMAN KAREN SHEPHERD OF UTAH IS GETTING A CASE OF THE BELTWAY WILLIES LAST FALL SHE CAMPAIGNED AGAINST AN ENTRENCHED OUTOFTOUCH CONGRESS AND ENDORSED TERM LIMITS SHE WON NARROWLY NOW SHE DECLINES EVEN TO MEET WITH TERMLIMIT SPONSORS WHO WANT HER TO SUPPORT A VOTE IN CONGRESS SHE DID GET A SEAT ON PUBLIC WORKS SO DID REP JAMES BARCIA OF MICHIGAN WHO RECENTLY TOLD ONE LOBBYIST HE CAN'T COSPONSOR A TERMLIMIT BILL NOW BECAUSE IT MIGHT MAKE A CHAIRMAN MAD SUCH THINKING REFLECTS ANOTHER BIT OF CONGRESSIONAL LORE THAT SPEAKER FOLEY PASSED ALONG AT THIS YEAR'S FRESHMAN ORIENTATION IT SEEMS THAT FORMER SPEAKER JOHN MCCORMACK LIKED TO TELL FRESHMEN THAT IT WAS POSSIBLE FOR SOMEONE TO BE ELECTED BY ACCIDENT BUT RARELY REELECTED HIS POINT IS THAT THE SPOILS OF POWER BELONG TO THOSE WITH LONG CAREERS IT IS FANCIFUL TO EXPECT THAT FRESHMEN WHO WANT LONG CAREERS WILL DO ANYTHING TO RISK THEM THE CAREERISM ALREADY EVIDENT IN THE CLASS OF 1992 REINFORCES THE ARGUMENT THAT THE ONLY REFORM OF CONGRESS THAT MATTERS IS THE ONE THAT LIMITS CAREERS TERM LIMITS 9303120054 930312 BUSINESS BRIEF PARAMOUNT COMMUNICATIONS INC DIRECTORS ARE REELECTED DESPITE PROTEST OVER PAY PARAMOUNT COMMUNICATIONS INC SHAREHOLDERS OVERWHELMINGLY REELECTED DIRECTORS AT THE ANNUAL MEETING IN INDIANAPOLIS IGNORING A PROTEST BY TWO OF ITS INSTITUTIONAL HOLDERS OVER EXECUTIVE PAY AT THE ENTERTAINMENT GIANT PARAMOUNT SAID SHAREHOLDERS CAST AN AVERAGE OF MORE THAN 98 OF VOTES REPRESENTED AT THE MEETING IN FAVOR OF REELECTING EACH OF THE COMPANY'S 15 DIRECTORS INCLUDING THE FOUR WHO MAKE UP THE COMPENSATION COMMITTEE OFFICIALS OF WISCONSIN'S PUBLIC PENSION FUNDS CITING PARAMOUNT'S LAGGARD STOCK PERFORMANCE ANNOUNCED LAST WEEK THEY WOULD LEAD AN EFFORT TO UNSEAT THE FOUR MEMBERS OF THE COMPENSATION COMMITTEE THE OFFICIALS WERE UPSET THAT THE COMMITTEE AWARDED PARAMOUNT'S CHAIRMAN AND CHIEF EXECUTIVE MARTIN S DAVIS A SALARY AND BONUS OF 36 MILLION LAST YEAR UP FROM 1991'S 28 MILLION SUBSEQUENTLY CONNECTICUT'S STATE TREASURER VOWED TO JOIN WISCONSIN IN WITHHOLDING SUPPORT FOR THE COMPENSATION COMMITTEE MEMBERS TOGETHER THE TWO STATE PENSION FUNDS OWN ABOUT 300000 OF PARAMOUNT'S 118 MILLION SHARES OUTSTANDING 9303120053 930312 BUSINESS BRIEF GEO INTERNATIONAL CORP CREDITOR ACCORD IS NEEDED TO AVERT BANKRUPTCY FILING GEO INTERNATIONAL CORP CHICAGO SAID THERE IS A PROBABILITY IT WILL HAVE TO SEEK REORGANIZATION UNDER FEDERAL BANKRUPTCY LAWS IF IT CANNOT REACH AGREEMENT WITH ITS CREDITORS IN A RECENT FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT IS UNCERTAIN ABOUT ITS ABILITY TO MEET FUTURE OPERATING REQUIREMENTS IN ADDITION THE COMPANY SAID ASSET SALES MAY BE NECESSARY AS WELL AS RESTRUCTURING OF CONTRACT OBLIGATIONS AND A PROGRAM OF COST REDUCTIONS GEO WHICH SUPPLIES INK EQUIPMENT AND SUPPLIES TO THE GRAPHIC ARTS INDUSTRY REPORTED A LOSS FOR ITS FISCAL FIRST QUARTER ENDED DEC 31 OF 166 MILLION INCLUDING A 136 MILLION CHARGE TO WRITE OFF GOODWILL THE LOSS WAS ON SALES OF 96 MILLION AND COMPARED WITH A YEAREARLIER LOSS OF 23 MILLION EARLIER THIS MONTH THE COMPANY SAID IT HAD SO FAR BEEN UNSUCCESSFUL IN SEEKING NEW SOURCES OF CAPITAL INFUSION 9303120052 930312 PRIMERICA'S ACQUISITION OF SHEARSON IS APPROVED BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRIMERICA CORP'S PURCHASE OF THE BROKERAGE OPERATIONS OF SHEARSON LEHMAN BROTHERS INC FOR ABOUT 1 BILLION IN CASH AND SECURITIES WAS APPROVED BY THE BOARDS OF PRIMERICA AND SHEARSON'S PARENT AMERICAN EXPRESS CO PEOPLE FAMILIAR WITH THE MATTER SAID THE APPROVAL OF THE BOARDS WHICH WAS EXPECTED CAME IN TELEPHONE CONFERENCE CALLS LATE WEDNESDAY THE PEOPLE SAID AMERICAN EXPRESS AND PRIMERICA ARE EXPECTED TO ANNOUNCE THE TRANSACTION AS EARLY AS THIS MORNING STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC THE TWO MAJOR CREDITRATING AGENCIES HAVE RAISED NO OBJECTIONS TO THE DEAL EXECUTIVES FAMILIAR WITH THOSE AGENCIES SAID S&P AND MOODY'S DECLINED TO COMMENT THE COMBINATION OF SHEARSON'S BROKERAGE OPERATIONS WITH PRIMERICA'S SMITH BARNEY HARRIS UPHAM & CO WILL CREATE A GIANT SECURITIES FIRM WITH NEARLY 11000 BROKERS RIVALING THAT OF INDUSTRY LEADER MERRILL LYNCH & CO WHICH HAS 11500 BROKERS IT ALSO REPRESENTS A MAJOR RETREAT FROM THE BROKERAGE BUSINESS BY AMERICAN EXPRESS AS PART OF THE TRANSACTION AMERICAN EXPRESS IS EXPECTED TO TAKE A CHARGE AGAINST EARNINGS SPOKESMEN FOR AMERICAN EXPRESS AND PRIMERICA DECLINED TO COMMENT ON WEDNESDAY BOTH COMPANIES CONFIRMED THEY WERE DISCUSSING THE SALE OF SHEARSON INCLUDED IN THE SALE WOULD BE SHEARSON'S FORCE OF NEARLY 8500 BROKERS AND ITS BIG ASSETMANAGEMENT DIVISION WHICH INVESTS 52 BILLION FOR CLIENTS IT WOULDN'T INCLUDE LEHMAN BROTHERS SHEARSON'S INVESTMENT BANKING AND TRADING DIVISION THE TRANSACTION IS LIKELY TO BE THE BIGGEST BROKERAGEFIRM ACQUISITION EVER ECLIPSING THE 11 BILLION MERGER IN 1988 OF CREDIT SUISSE FIRST BOSTON AND FIRST BOSTON INC THAT'S BECAUSE THE SHEARSON SALE INCLUDES AN EARNOUT PROVISION BEING GRANTED TO AMERICAN EXPRESS THAT WOULD ENTITLE IT TO A PERCENTAGE OF SHEARSON'S FUTURE EARNINGS AND INCOME FROM SECURITIES THAT PRIMERICA WILL GIVE AMERICAN EXPRESS AS PART OF THE DEAL THE PEOPLE SAID THE PROVISION IS EXPECTED TO BRING THE VALUE OF THE TRANSACTION TO 115 BILLION BUT EVEN AT THE 1 BILLION PRICE THE PRIMERICASHEARSON DEAL WOULD BE THE BIGGEST PURCHASE IN THE SECURITIES INDUSTRY SINCE THE 1988 MERGER OF SHEARSON AND EF HUTTON GROUP INC WHAT WAS BEING THRASHED OUT LATE YESTERDAY IN TALKS BETWEEN PRIMERICA AND AMERICAN EXPRESS WERE MINOR DETAILS INCLUDING HOW TO DIVIDE UP COMPUTERS AND CUSTOMERORDER FLOW THE PEOPLE SAID THE DETAILS OF THE TRANSACTION ARE PARTICULARLY INTRICATE BECAUSE LEHMAN BROTHERS ISN'T INCLUDED IN THE TRANSACTION AND HASN'T BEEN A SEPARATE CORPORATE ENTITY AFTER THE SALE SANFORD I WEILL PRIMERICA'S CHAIRMAN IS EXPECTED TO DISMISS AS MANY AS 2000 EMPLOYEES IN THE COMBINED FIRM WHICH INITIALLY WOULD HAVE A STAFF OF 26500 WALL STREET EXECUTIVES SAID MANY OF THE CUTS WILL BE IN THE BACKOFFICE OR TRADEPROCESSING OPERATIONS BUT ALSO WILL INCLUDE BROKERS AND OTHERS THE DIFFICULT JOB WILL BEGIN AFTER THE TRANSACTION IS COMPLETED SOME INVESTORS SAY THERE ARE SIGNIFICANT ISSUES TO BE OVERCOME SAYS SCOTT OFFEN A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS MERGING THESE SYSTEMS IS NOT SOMETHING DONE OVERNIGHT THE SHARES OF BOTH PRIMERICA AND AMERICAN EXPRESS ROSE YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING PRIMERICA CLIMBED 1125 A SHARE TO A RECORD 48 ITS STOCK IS UP 20 SINCE TUESDAY WHEN THE DISCUSSIONS TO BUY SHEARSON WERE FIRST DISCLOSED AMERICAN EXPRESS ROSE 25 CENTS TO 27375 A SHARE ITS STOCK IS UP 2 SINCE TUESDAY 9303120051 930312 BUSINESS BRIEF CHAMBERS DEVELOPMENT CO WASTE MANAGEMENT BUYS SOME ASSETS FOR 145 MILLION CHAMBERS DEVELOPMENT CO PITTSBURGH SAID IT SOLD ITS TRASHHAULING ASSETS IN THREE STATES TO WASTE MANAGEMENT INC OAK BROOK ILL FOR 145 MILLION CHAMBERS A WASTE DISPOSAL COMPANY SAID THE SALE OF THE OPERATIONS IN TEXAS MASSACHUSETTS AND RHODE ISLAND MADE SENSE SINCE THE COMPANY OWNS NO LANDFILLS THERE ANALYST DOUGLAS AUGENTHALER OF OPPENHEIMER & CO SAID CHAMBERS SUCCUMBED TO PRESSURE FROM ITS BANKS TO SELL THE ASSETS AS IT ATTEMPTS TO RENEGOTIATE CREDIT AGREEMENTS THE BANKS ARE GIVING THEM SUCH A HARD TIME THEY HAVE TO RAISE WHATEVER CASH THEY CAN WITHIN CORE OPERATIONS MR AUGENTHALER SAID CHAMBERS DENIED THE BANKS FORCED THE SALE SAYING THE MOVE WAS PART OF A LONGTERM PLAN TO DIVEST NONSTRATEGIC ASSETS IN AN ARTICLE FRIDAY ABOUT CHAMBERS DEVELOPMENT CO THE PREFIX NON WAS INADVERTENTLY LEFT OUT OF A QUOTE ATTRIBUTED TO ANALYST DOUGLAS AUGENTHALER OF OPPENHEIMER & CO MR AUGENTHALER'S QUOTE SHOULD HAVE READ THE BANKS ARE GIVING THEM SUCH A HARD TIME THEY HAVE TO RAISE WHATEVER CASH THEY CAN WITH NONCORE OPERATIONS CHAMBERS HAS DENIED THAT THE BANKS ARE FORCING THE SALE OF ANY OPERATIONS 9303120050 930312 COMMON CRIMINALS JUST ABOUT EVERYONE VIOLATES SOME LAWS EVEN MODEL CITIZENS MANY OFTEN VIEW LEGAL RULES AS FOOLISH OR INTRUSIVE BUT CAREERS CAN BE HURT AS USUAL PARENTS ARE BLAMED BY STEPHEN J ADLER AND WADE LAMBERT STAFF REPORTERS OF THE WALL STREET JOURNAL WE ARE A NATION OF LAWBREAKERS WE EXAGGERATE TAXDEDUCTIBLE EXPENSES LIE TO CUSTOMS OFFICIALS BET ON CARD GAMES AND SPORTS EVENTS DISREGARD JURY NOTICES DRIVE WHILE INTOXICATED AND HIRE ILLEGAL CHILDCARE WORKERS THE LAST OF THESE WAS RECENTLY THE CRIME OF THE MOMENT AND JANET RENO WOULDN'T HAVE BEEN IN THE POSITION TO BE CONFIRMED UNANIMOUSLY AS ATTORNEY GENERAL YESTERDAY IF ZOE BAIRD HAD OBEYED THE MUCHFLOUTED IMMIGRATION AND TAX LAWS BUT THE CRIME OF THE MOMENT COULD HAVE BEEN SOMETHING ELSE AND NEXT TIME IT PROBABLY WILL BE THIS IS BECAUSE NEARLY ALL PEOPLE VIOLATE SOME LAWS AND MANY PEOPLE RUN AFOUL OF DOZENS WITHOUT EVER BEING CONSIDERED OR CONSIDERING THEMSELVES CRIMINALS THE TWO AUTHORS OF THIS ARTICLE ADMIT BETWEEN THEM TO HAVING COMMITTED 16 OF THE 25 OFFENSES LISTED ON THE CHART CARRYING MAXIMUM JAIL TIME OF 15 YEARS AND FINES OF AS MUCH AS 30000 MOST OF THE DOZENS OF PEOPLE INTERVIEWED FOR THE ARTICLE HAVE VIOLATED EIGHT OR MORE WHY DO WE BREAK THE LAW IS IT AS SOME PSYCHOLOGISTS SUGGEST BECAUSE THE LAW IS OUR SYMBOLIC PARENT WHOM WE BOTH ADORE AND ABHOR AND WHOM WE ENJOY DISOBEYING OR IS IT MORE PROSAICALLY THAT MANY LAWS SEEM TOO FOOLISH UNFAIR BURDENSOME OR INTRUSIVE FOR EVEN THE MOST LAWABIDING TO OBEY SLAVISHLY OR IS IT SIMPLY THAT WE KNOW WE CAN GET AWAY WITH IT SOME PEOPLE WHO DEAL WITH SERIOUS CRIME SCOFF AT THESE QUESTIONS ARGUING THAT ROUTINE NONVIOLENT INFRACTIONS ARE TOO TRIVIAL TO WORRY ABOUT IN A NATION THREATENED BY MURDER RAPE ARMED ROBBERY GANG WARFARE AND DRUG TRAFFICKING BUT OTHER SOCIAL SCIENTISTS TAKE SERIOUSLY THE PHENOMENON OF LAWBREAKING AMONG THE OSTENSIBLY LAWABIDING THEY SAY OUR WILLINGNESS TO BREAK LAWS UNDERMINES RESPECT FOR OURSELVES FOR ONE ANOTHER AND FOR THE RULE OF LAW AS A PRACTICAL MATTER LAWS THAT ARE OFTEN BROKEN WITH IMPUNITY MAKE IT DIFFICULT FOR PEOPLE TO PREDICT THE CONSEQUENCES OF THEIR ACTS IN THE 1970S DOUGLAS GINSBURG SMOKED MARIJUANA AS DID MANY OF HIS CONTEMPORARIES IN 1987 HE LOST THE CHANCE TO BE A SUPREME COURT JUSTICE AS A RESULT PERHAPS A YOUNG LAWYER WHO NOW TOSSES SODA CANS INTO THE GARBAGE WILL BE NEXT IN THE YEAR 2001 FAILING TO RECYCLE COULD DISQUALIFY SOMEONE FOR THE CABINET LAWBREAKING AMONG THE MOSTLY LAWABIDING ISN'T NEW OF COURSE TAX EVASION DATES BACK TO BIBLICAL TIMES AVOIDING JURY DUTY HAS BEEN COMMON SPORT AT LEAST SINCE THE 17TH CENTURY MILLIONS DRANK LIQUOR DURING PROHIBITION PEOPLE HAVE BEEN DRIVING WHILE INTOXICATED SINCE THE INVENTION OF THE AUTOMOBILE CRIMINOLOGISTS SAY THEY BELIEVE THAT THERE ARE MORE SUCH CRIMES THAN THERE USED TO BE BUT THERE ARE NO FIGURES TO BACK UP THAT CLAIM ACADEMIC STUDIES DO SHOW HOW WIDESPREAD LAWBREAKING IS TODAY UNIVERSITY OF COLORADO SOCIOLOGIST DELBERT ELLIOTT HAS TRACKED A GROUP OF YOUNG ADULTS SINCE 1976 WHEN THEY WERE JUNIORHIGH AND HIGHSCHOOL AGE THE TALLY THUS FAR 90 OF THE GROUP HAS BROKEN THE LAW AT SOME TIME OTHER STUDIES YIELD SIMILAR RESULTS ONE REASON FOR SO MUCH LAWBREAKING CRIMINOLOGISTS SAY IS THAT THERE ARE SO MANY LAWS WITH NEW ONES BEING ADDED EVERY YEAR A STATE'S STATUTES INCLUDING REGULATIONS OF BUSINESSES CAN FILL 40 VOLUMES OR MORE STATE CRIMINAL CODES AVERAGE ABOUT 1000 PAGES EACH AND ON TOP OF THE STATE TOMES SIT THE US LAWS FEDERAL CRIMINAL PROVISIONS FILL SOME 800 PAGES TOWN AND CITY ORDINANCES ADD TO THE LIST THERE ARE SO MANY THINGS LEGALLY ONE CAN GET IN TROUBLE FOR BREAKING IT WOULD BE DIFFICULT NOT TO BE A LAWBREAKER IN OUR SOCIETY SAYS PAUL FROMBERG AN EPISCOPAL PRIEST AT CHRIST CHURCH CATHEDRAL IN HOUSTON WHO ADMITS TO HAVING BROKEN 12 LAWS ON THE ACCOMPANYING CHART IF YOU DON'T KNOW WHAT THE RULE IS HOW DO YOU FOLLOW IT WONDERS JACK GREENE A CRIMINALLAW PROFESSOR AT TEMPLE UNIVERSITY ALSO IN A NATION THAT IS INCREASINGLY MULTICULTURAL MANY LAWS DON'T REPRESENT SHARED VALUES LAWS RESTRICTING GAMBLING DRINKING FORTUNETELLING EXTRAMARITAL SEX SEXUAL BEHAVIOR AND THE USE OF FIREWORKS FOR EXAMPLE ARE MORE ACCEPTABLE IN SOME COMMUNITIES THAN IN OTHERS IN MANY STATES ADDS JAMES FYFE A CRIMINALJUSTICE PROFESSOR AT TEMPLE UNIVERSITY THE LEGISLATURE IS STILL DOMINATED BY RURAL LAWMAKERS WHOSE LAWS REFLECT THE VALUES OF THE FARMS BUT NOT OF THE URBAN AREAS UNDER THE CIRCUMSTANCES PEOPLE WHO SEEK TO MAINTAIN HIGH MORAL STANDARDS OFTEN MAKE SHARP DISTINCTIONS BETWEEN LAWS THEY WILL BREAK AND THOSE THEY WON'T SOME PEOPLE WHO STEAL FOR EXAMPLE DO SO ONLY WHEN THEY BELIEVE THEY HAVE A MORAL RIGHT TO WHAT THEY ARE TAKING JUST BECAUSE SOMETHING IS AGAINST THE LAW DOESN'T MEAN IT'S WRONG SAYS SAN FRANCISCO AUTHOR TIMOTHY FERRIS I'VE STOLEN LEGAL PADS FROM EVERY OFFICE I'VE EVER BEEN IN BUT I USE THOSE LEGAL PADS TO WRITE BOOKS THAT'S A GOOD USE OF THE LEGAL PAD CRIMES THAT ARE SEEN AS VICTIMLESS OR AS INVASIONS OF PRIVACY ARE OFTEN BROKEN WITHOUT MUCH SOULSEARCHING THERE IS A HUGE NUMBER OF PEOPLE WHO VIOLATE DRUG LAWS BECAUSE THEY BELIEVE IT IS THEIR OWN PRIVATE BUSINESS SAYS ARNOLD TREBECH OF THE DRUG POLICY FOUNDATION IN WASHINGTON WHICH ADVOCATES DECRIMINALIZATION OF SOME ILLEGAL DRUGS TO A LARGE NUMBER OF DRUG USERS THE LAW IS AN ASS BUT PEOPLE DIFFER AS TO WHICH CRIMES ARE VICTIMLESS AND WHICH VICTIMS MERIT CONCERN WHO IS THE VICTIM WHEN ONE CHEATS ON ONE'S TAXES OR LIES TO THE INSURANCE COMPANY OR MAKES ILLEGAL HOME REPAIRS WHOEVER THE VICTIM IS IT IS NAMELESS FACELESS AND TOO DISTANT TO CONCERN MANY PEOPLE THIS MAY BE WHY PEOPLE SO READILY CHEAT THE INTERNAL REVENUE SERVICE EVEN THOUGH THE ECONOMY MAY SUFFER AS A RESULT WE WOULD HAVE NO NATIONAL DEBT IF PEOPLE WOULD PAY THE TAXES THEY OWE SAYS TODD CLEAR A CRIMINALJUSTICE PROFESSOR AT RUTGERS UNIVERSITY IN NEWARK NJ CERTAINLY THE MORE DISTANT OR ABSTRACT THE VICTIM THE LESS INCENTIVE THERE SEEMS TO BE TO RESPECT OR PROTECT THAT VICTIM KENNETH LENIHAN A PROFESSOR AT JOHN JAY COLLEGE OF CRIMINAL JUSTICE IN NEW YORK SAYS HE WITNESSED THIS PHENOMENON A FEW YEARS AGO WHEN HE EMPLOYED SEVERAL EXPRISONERS AFTER ONE APPARENTLY STOLE THE PROFESSOR'S CHECKBOOK AND FORGED SOME CHECKS TWO OF THE OTHERS INDICATED THAT THEY WOULD COOPERATE WITH THE BANK'S INVESTIGATION BUT WHEN THEY LEARNED THE LOSS WOULD BE THE BANK'S AND NOT MR LENIHAN'S THEY CHANGED THEIR MINDS HE SAYS ANOTHER OBSTACLE TO GOOD CITIZENSHIP IS THAT LAWBREAKERS ARE OFTEN ADMIRED BOTH FOR TAKING A RISK AND FOR PROFITING FROM DOING SO SAYS PROF GREENE OF TEMPLE THERE'S AN UNDERTHETABLE IDEOLOGY IN THIS COUNTRY PEOPLE WANT A GOOD DEAL THIS ATTITUDE SEEMS TO BE PARTICULARLY PREVALENT IN THE WORKPLACE WHERE COMPETITION DICTATES STRADDLING A FINE LINE BETWEEN SHREWD AND SHADY WHAT A LOT OF PEOPLE DO IS THEY HANG THEIR ETHICAL HAT AT THE DOOR SAYS MICHAEL DAIGNEAULT WHOSE FALLS CHURCH VA FIRM ETHICS INC TEACHES ETHICS TO BUSINESSPEOPLE BUT SOME LAWANDPSYCHOLOGY SPECIALISTS SAY SOMETHING FAR DEEPER IS AT WORK IN LAWBREAKING OUR EMOTIONAL STANCE TOWARD THE LAW ISN'T ONE OF UNEQUIVOCAL RESPECT BUT ONE OF AMBIVALENCE SAYS MARTHA GRACE DUNCAN A PROFESSOR AT EMORY UNIVERSITY'S LAW SCHOOL FROM A PSYCHOANALYTIC PERSPECTIVE IT MAKES SENSE THAT THIS SHOULD BE SO SHE ADDS FOR THE LAW REPRESENTS THE PARENT AND THUS SERVES AS A REPOSITORY OF POWERFUL FEELINGS FROM EARLY CHILDHOODCOMPLEX FEELINGS OF AFFECTION AND DISDAIN ATTRACTION AND REPUDIATION INCONSISTENT DISCIPLINE IF SO THE NATIONAL PARENT MAY NEED A LESSON FROM DR SPOCK IN THE VIRTUES OF CONSISTENT DISCIPLINE CIVIL LIBERTARIANS WARN THAT WHEN TOO MANY RULES EXIST AND ONLY SOME ARE ENFORCED THE LAW BECOMES CAPRICIOUS AND UNSETTLING THE LEGAL SYSTEM STARTS TO RESEMBLE A LOTTERY ONE SOLUTION IS TO REPEAL OR AMEND LAWS THAT DON'T MAKE SENSE TO A LOT OF PEOPLE INDEED THE ZOE BAIRD FLAP SEEMS LIKELY TO RESULT IN MORE SENSIBLE RULES FOR PAYING SOCIAL SECURITY TAXES FOR DOMESTIC EMPLOYEES BUT MOST OF THE OFTENDISOBEYED LAWS ARE LIKELY TO STAY ON THE BOOKS EITHER BECAUSE THEY ARE SOUND PUBLIC POLICY OR BECAUSE IT IS EASIER TO PASS A NEW LAW THAN TO REPEAL AN OLD ONE PARTICULARLY WHEN MORALS ARE THOUGHT TO BE AN ISSUE MANY LEGISLATORS DON'T WANT TO APPEAR TO BE ON THE SIDE OF SIN EVEN SOME PEOPLE WHO ADMIT TO OCCASIONAL LAWBREAKING SAY THEY ARE HAPPY THE LAWS ARE THERE JUST SO PEOPLE DON'T GET REALLY OUT OF HAND AS LOS ANGELES TEACHER JANIE TELLER PUTS IT INEVITABLY THEN SOME LONGDORMANT LAW WILL AWAKEN PERIODICALLY AND LIKE A BMOVIE MONSTER WREAK HAVOC FOR A TIME BUT FEAR OF THE CONSEQUENCES PROBABLY WON'T INCREASE ADHERENCE TO THE LAW JUST ASK LOS ANGELES ARCHITECT STEVEN WALLOCK WHO SAYS HE HAS VIOLATED 22 OF THE 25 LAWS ON THE ACCOMPANYING CHART SOME OF THE PROHIBITED ACTS ARE JUST TOO MUCH FUN TO RESIST HE EXPLAINS AND LIKE MOST OF US HE DOESN'T EXPECT TO GET CAUGHT WHY WOULD SOMEBODY DOUBT ME HE ASKS I'M A GOOD GUY AND I LOOK HONEST AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9303120049 930312 MARKETING BRIEF SHAMROCK HOLDINGS INC ROY DISNEY CONCERN TO BUY MALRITE'S RADIO OPERATIONS SHAMROCK HOLDINGS INC BURBANK CALIF SAID ITS BROADCASTING UNIT PLANS TO ACQUIRE THE RADIO OPERATIONS OF MALRITE COMMUNICATIONS GROUP INC CLEVELAND IN A STOCK SWAP TERMS WEREN'T DISCLOSED SHAMROCK THE INVESTMENT COMPANY OWNED BY THE ROY E DISNEY FAMILY SAID THE COMBINED COMPANY WILL HAVE ASSETS OF 300 MILLION AND WOULD BE ONE OF THE LARGEST RADIO BROADCASTING COMPANIES IN THE US WITH 21 STATIONS IN 12 MAJOR MARKETS TREFOIL CAPITAL INVESTORS LP AN INVESTMENT FUND RUN BY SHAMROCK EXECUTIVES IS EXPECTED TO PROVIDE A SIGNIFICANT AMOUNT OF THE FINANCING FOR THE MERGER IN THE FORM OF CONVERTIBLE PREFERRED STOCK AND CONVERTIBLE DEBT SHAMROCK SAID MALRITE IS A PRIVATELY HELD COMPANY PRINCIPALLY OWNED BY MILTON MALTZ ITS CHAIRMAN 9303120048 930312 CREDIT RATINGS BEAR STEARNS CO NEW YORK STANDARD & POOR'S CORP SAID IT MAY RAISE ITS SINGLEAMINUS SENIOR DEBT RATING ON THIS INVESTMENT BANKING CONCERN CITING THE COMPANY'S PLANS TO ISSUE 400 MILLION OF PREFERRED STOCK S&P SAID THE ADDITIONAL PREFERRED STOCK WILL STRENGTHEN THE COMPANY'S CAPITAL STRUCTURE THE RATING AGENCY NOTED THAT BEAR STEARNS'S ASSETS CONTINUE TO BE PREDOMINANTLY LOWERRISK SECURED RECEIVABLES AND SECURITIES INVENTORIES 9303120047 930312 PRUDENTIAL PUTS ITS REINSURANCE UNIT ON BLOCK ASKING PRICE OF 12 BILLION HIGHLIGHTS VALUE SURGE IN WAKE OF HURRICANE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEWARK NJ PRUDENTIAL INSURANCE CO OF AMERICA HAS PUT ITS REINSURANCE UNIT ON THE BLOCK ASKING A PRICE OF 12 BILLION THE MOVE HIGHLIGHTS THE SOARING VALUES OF REINSURANCE COMPANIES IN THE WAKE OF HURRICANE ANDREW DESPITE THEIR HUGE LOSSES ON THE STORM REINSURERS ARE BENEFITING FROM IT WITH HEIGHTENED DEMAND FOR REINSURANCE PUSHING UP PRICES AND MAKING THEM MORE PROFITABLE FOR INSTANCE SINCE THE STORM HIT ON AUG 24 THE SHARES OF GENERAL RE CORP THE COUNTRY'S BIGGEST REINSURER ARE UP 375 GIVEN CURRENT INVESTOR INTEREST IN THE REINSURANCE SECTOR WE FEEL THAT NOW IS AN OPPORTUNE TIME TO EXPLORE ALTERNATIVES SAID PRUDENTIAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROBERT WINTERS PRUDENTIAL WANTS TO SHED THE REINSURANCE BUSINESS ASSUMING THE PRICE IS RIGHT TO FOCUS ON ITS CORE BUSINESSES INDIVIDUAL FINANCIAL SERVICES EMPLOYEE BENEFITS AND ASSET MANAGEMENT THE UNIT PRUDENTIAL REINSURANCE CO REPORTED PREMIUMS LAST YEAR OF 7829 MILLION MAKING IT THE FIFTHLARGEST REINSURER IN THE COUNTRY LAST YEAR BECAUSE OF ANDREW AND OTHER CATASTROPHES THE UNIT HAD A LOSS OF 605 MILLION COMPARED WITH A 97 MILLION PROFIT IN 1991 WHILE PRICES ON SOME TYPES OF PROPERTY AND CASUALTY INSURANCE HAVE DEFIED EXPECTATIONS BY REMAINING FLAT AFTER ANDREW PRICES FOR REINSURANCE HAVE SOARED INSURERS URPRISED BY THE SIZE OF ANDREW LOSSES ARE ANXIOUS TO COVER THEMSELVES FROM FUTURE LOSSES BY BUYING REINSURANCE PRUDENTIAL HAS RETAINED THE INVESTMENT BANKING ARM OF JP MORGAN & CO TO WORK WITH ITS PRUDENTIAL SECURITIES UNIT IN FINDING A BUYER A PRUDENTIAL SENIOR MANAGING DIRECTOR ROBERT M CHMELY SAID THE INVESTMENT BANKERS WILL APPROACH OTHER INSURANCE COMPANIES AS WELL AS DEEPPOCKETED INVESTOR GROUPS HE SAID PRUDENTIAL HAS NO INTENTION OF SELLING THE OPERATION THROUGH A PUBLIC STOCK OFFERING ANALYSTS SAID THAT BY SELLING THE UNIT FOR 12 BILLION PRUDENTIAL COULD RECORD A PRETAX CAPITAL GAIN OF ABOUT 500 MILLION BUT THEY QUESTIONED WHETHER PRUDENTIAL'S ASKING PRICE IS TOO HIGH GIVEN THE UNIT'S EXPOSURE TO FUTURE LOSSES I THINK THEY'RE A LITTLE OPTIMISTIC SAID ERIC SIMPSON A VICE PRESIDENT FOR AM BEST CO THE UNIT WHICH SELLS BOTH PROPERTY AND CASUALTY REINSURANCE EMPLOYS 730 PEOPLE HERE MR CHMELY DENIED THAT PRUDENTIAL WAS SELLING THE UNIT TO REPLENISH THE 900 MILLION LOSS PRUDENTIAL SUFFERED ON HURRICANE ANDREW INSURANCE EXPERTS SAID MOST MAJOR REINSURERS AND INSURANCE INVESTORS ARE LIKELY TO KICK THE TIRES OF PRUDENTIAL RE INCLUDING GENERAL RE AMERICAN INTERNATIONAL GROUP INC AND ITS REINSURANCE AFFILIATE TRANSATLANTIC HOLDINGS INC GENERAL ELECTRIC CORP'S EMPLOYERS REINSURANCE CORP BERKSHIRE HATHAWAY INC AND NEW YORK INVESTOR JOHN HEAD NONE OF THOSE MENTIONED WOULD COMMENT FOREIGN INSURANCE COMPANIES ALSO ARE LIKELY TO LOOK ANALYSTS SAY THAT BY SELLING NOW PRUDENTIAL HOPES TO CASH IN ON THE MARKET ENTHUSIASM FOR REINSURANCE GENERATED BY THE PUBLIC OFFERING OF AMERICAN RE CORP BUYOUT SPECIALISTS KOHLBERG KRAVIS ROBERTS & CO MADE A BIG PROFIT LAST YEAR BY TAKING THE PRINCETON NJ COMPANY PUBLIC ONLY TWO MONTHS AFTER BUYING IT FROM AETNA LIFE & CASUALTY CO MAJOR RATING AGENCIES PUT PRUDENTIAL RE ON REVIEW FOR A POSSIBLE DOWNGRADE YESTERDAY EXPLAINING THAT THE COMPANY'S CURRENT RATINGS ARE PARTLY BASED ON THE BACKING OF PRUDENTIAL THE COUNTRY'S LARGEST INSURER 9303120046 930312 BUSINESS BRIEF US TRUST CORP CONNECTICUT GIVES APPROVAL TO SET UP SUBSIDIARY THERE US TRUST CORP NEW YORK SAID IT RECEIVED PERMISSION FROM CONNECTICUT BANK REGULATORS TO ESTABLISH A BANK AND TRUST COMPANY SUBSIDIARY IN THAT STATE US TRUST A PROVIDER OF TRUST PRIVATE BANKING AND OTHER SERVICES TO WEALTHY INDIVIDUALS FAMILIES AND INSTITUTIONS SAID THE UNIT WILL FUNCTION SOLELY IN A FIDUCIARY CAPACITY AND NOT PERFORM BANKING ACTIVITIES SUCH AS MAKING LOANS OR TAKING DEPOSITS A SPOKESMAN SAID THE COMPANY WAS RESPONDING TO DEMAND MANY OF ITS AFFLUENT CUSTOMERS LIVE IN CONNECTICUT THE NEWLY CHARTERED COMPANY WHICH WILL OPEN LATER THIS YEAR WILL BE NAMED US TRUST CO OF CONNECTICUT AND WILL BE BASED IN STAMFORD FREDERICK S WONHAM VICE CHAIRMAN OF US TRUST WILL SERVE AS CHAIRMAN OF THE NEW SUBSIDIARY AND PAUL K NAPOLI EXECUTIVE VICE PRESIDENT AND HEAD OF THE PARENT'S ASSET MANAGEMENT DIVISION WILL BE PRESIDENT AND CHIEF EXECUTIVE OFFICER SENIOR VICE PRESIDENT W MICHAEL FUNCK WILL SERVE AS CHIEF OPERATING OFFICER AND SENIOR TRUST OFFICER 9303120044 930312 BUSINESS BRIEF BELL ATLANTIC CORP BARCLAYS TO PURCHASE 46 OF TELECOM OF NEW ZEALAND A BELL ATLANTIC CORP UNIT SAID IT AGREED TO SELL ABOUT 109 MILLION SHARES OR 46 OF TELECOM CORP OF NEW ZEALAND LTD TO AN AFFILIATE OF BRITAIN'S BARCLAYS BANK PLC TERMS WEREN'T DISCLOSED BELL ATLANTIC PHILADELPHIA SAID IT EXPECTS TO RECOGNIZE A GAIN OF ABOUT 40 MILLION IN THE FIRST QUARTER WHICH WOULD OFFSET A PREVIOUSLY REPORTED 38 MILLION CHARGE FROM RESTRUCTURING TELECOM'S OPERATIONS THE SALE TO BZW NEW ZEALAND LTD AN AFFILIATE OF BARCLAYS DE ZOETE WEDD BARCLAYS' INVESTMENTBANKING UNIT LOWERS BELL ATLANTIC'S TELECOM OWNERSHIP TO ABOUT 30 THE COMPANY MUST CUT ITS STAKE TO 2495 BY SEPT 12 1994 UNDER THE 1990 AGREEMENT THAT LET BELL ATLANTIC AMERITECH CORP AND NEW ZEALAND PARTNERS ACQUIRE TELECOM OF NEW ZEALAND 9303120043 930312 ECONOMY SUBMINIMUM WAGE OF 362 AN HOUR IS ON DEATHBED BUT DRAWS FEW MOURNERS BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUBMINIMUM WAGE IS POISED TO DIE THE SOCALLED TRAINING WAGE 362 AN HOUR WAS CREATED IN 1989 TO HELP BUSINESSES STOMACH A 90CENT INCREASE IN THE MINIMUM WAGE TO 425 AN HOUR IT WILL EXPIRE AT THE END OF MARCH UNLESS RENEWED BY CONGRESS BUT REPUBLICANS WHO ORIGINALLY PRESSED FOR THE LOWER WAGE AREN'T PLANNING TO BACK THE MEASURE AGAIN BECAUSE FEW BUSINESSES USE IT THE LABOR DEPARTMENT WHICH WILL REPORT ON THE WAGE TO CONGRESS NEXT WEEK SAYS THAT SINCE THE LOWER PAY SCALE WAS SET IN 1989 FEW EMPLOYERS HAVE USED IT AND ONLY 14 EMPLOYERS NATIONWIDE HAVE FILED FORMS REQUIRED IF THEY WISH TO PAY THE SUBMINIMUM FOR MORE THAN 90 DAYS MOREOVER CONGRESSIONAL REPUBLICANS WORRY THAT RENEWING DISCUSSIONS ON THE SUBJECT COULD TRIGGER A FULLFLEDGED EFFORT BY CONGRESSIONAL DEMOCRATS TO RAISE THE OVERALL MINIMUM WAGE THIS SPRING THAT WOULD BE MUCH EARLIER THAN THE DEMOCRATS OTHERWISE WOULD BE EXPECTED TO RAISE THE ISSUE GIVEN THE FULL CONGRESSIONAL AGENDA IF RENEWING A TRAINING WAGE HAS TO BE DONE IN THE CONTEXT OF ANOTHER MINIMUMWAGE INCREASE NO ONE WANTS TO WALK DOWN THAT ROAD ARGUES RICHARD BERMAN EXECUTIVE DIRECTOR OF THE EMPLOYMENT POLICIES INSTITUTE A WASHINGTON THINK TANK FINANCED BY RESTAURANT AND HOTEL EMPLOYERS THE NEW TRAINING WAGE MIGHT END UP BEING HIGHER THAN THE CURRENT MINIMUM IT IS WIDELY EXPECTED THAT CONGRESS WILL RAISE THE MINIMUM WAGE THIS YEAR OR NEXT POSSIBLY TO ABOUT 5 AN HOUR AND THEN INDEX IT TO INFLATION BUT DEMOCRATS URGING THE INCREASE HAVE NEVER FAVORED THE LOWER TRAINING WAGE AND AREN'T LIKELY TO PUSH FOR ONE THE SUBMINIMUM WAGE DESIGNED FOR TEENAGERS HAS BEEN A NEGLECTED STEPCHILD SINCE ITS INCEPTION MR BERMAN ARGUES THAT SINCE THE SUBMINIMUM WAGE IS ONLY 63 CENTS AN HOUR LOWER THAN THE REGULAR MINIMUM HOURLY RATE FEW EMPLOYERS FIND IT WORTHWHILE TO GO THROUGH THE PAPERWORK ASSOCIATED WITH THE TRAINING WAGE MOREOVER MOST EMPLOYEES ARE ELIGIBLE FOR THE WAGE FOR ONLY 90 DAYS UNLESS A STRING OF LABOR DEPARTMENT REQUIREMENTS ARE MET EMPLOYERS MUST GET PROOF THAT WORKERS IT PAYS THE LOWER WAGE ARE UNDER 20 YEARS OLD AND EMPLOYERS MUST PROVIDE WRITTEN NOTICE ABOUT MINIMUMWAGE LAWS TO EACH EMPLOYEE PAID THE TRAINING WAGE WILLIAM SPRIGGS AN ECONOMIST AT THE ECONOMIC POLICY INSTITUTE CONTENDS IN A SOONTOBERELEASED STUDY THAT ONLY FIVE OF 199 RESTAURANTS HE SURVEYED USED THE SUBMINIMUM WAGE BUT HE ARGUES THAT THE PROBLEM ISN'T PAPERWORK AN EARLIER SUBMINIMUM WAGE REQUIRED EMPLOYERS TO BE CERTAIN THAT AFFECTED WORKERS WERE STUDENTS THE INSTITUTE IS A RESEARCH GROUP FINANCED LARGELY BY UNIONS MR SPRIGGS SAYS EMPLOYERS ESCHEW THE LOW PAY RATE BECAUSE OF EMPLOYEERELATIONS CONCERNS FIRMS TOLD US THEY COULDN'T FIGURE OUT HOW TO PAY SOMEBODY LESS MONEY TO DO THE SAME JOB AS SOMEONE ELSE IN THE BUILDING HE SAID YOU HAVE A 17YEAROLD GETTING THE SUBMINIMUM STANDING NEXT TO SOMEONE WHO'S 19 AND DOING THE SAME JOB A LARGE PERCENTAGE OF THE EMPLOYERS WERE UNCOMFORTABLE WITH THAT EITHER WAY THE WAGE WILL SOON BECOME A PIECE OF HISTORY AND THE LIKELIHOOD OF BEING RESUSCITATED SOON IS BLEAK IS ANYBODY GOING TO MISS IT ASKED A SENATE LABOR COMMITTEE STAFFER NOBODY USES IT 9303120042 930312 REVIEW & OUTLOOK EDITORIAL AMERICA'S BOMBERS THE WORLD TRADE CENTER BOMBING HAS INDEED BROUGHT THE SUBJECT OF TERRORISM HOME TO THE UNITED STATES AS MANY HAVE SUGGESTED AND THAT MEANS THE AVERAGE AMERICAN CITIZEN NOW GETS TO FORM AN OPINION ABOUT SOME IMPORTANT SUBJECTS THAT ARE NORMALLY THE NOTVERYEFFECTIVE PROVINCE OF THIS COUNTRY'S FOREIGN POLICY ELITES THAT WOULD INCLUDE THE STATE DEPARTMENT AND WRITERS AND MEDIA TYPES IN THE US WHO TRY TO SHAPE POLICY AROUND SAY THE MIDDLE EAST PROBLEM AN EXAMPLE AFTER THE BOMBING SECRETARY OF STATE WARREN CHRISTOPHER SHOWED UP ON CNN TO SAY THAT THE FACT THAT SOME OF THE SUSPECTS WERE PALESTINIAN MADE HIM WANT TO REDOUBLE HIS EFFORTS TO PUSH THE MIDEAST PEACE PROCESS FORWARD ANOTHER EXAMPLE WHEN SEVERAL MONTHS AGO ISRAEL DEPORTED MEMBERS OF HAMAS INTO LEBANON INTERNATIONAL FOREIGN POLICY ELITES RAINED DOWN OBLOQUY AND CONDEMNATION ON THE ISRAELIS HOW HEARTLESS AWFUL AND INHUMANE OF THE ISRAELIS TO SO TREAT A GROUP DEDICATED BY ITS OWN ADMISSION TO WIPING OUT ISRAEL TO THE LAST JEW WOULD IT HAVE NOT BEEN BETTER TO SUPPORT THE PEACE PROCESS AGAINST THIS DELICATENESS WHICH IS THE NORM IN DEALING WITH THE WORLD'S WORST PEOPLE WE NOW HAVE AMERICANS ASKING HOW IN BLAZES THE US AUTHORITIES COULD HAVE KNOWINGLY ALLOWED THIS CREW TO RATTLE AROUND THE NEW YORK CITY AREA ULTIMATELY TO WREAK DESTRUCTION AND DEATH WE HOPE THE PUBLIC PRESSES THE ISSUE IF OUR FOREIGN POLICY TYPES ARE NO LONGER CAPABLE OF GETTING TOUGH MAYBE THEY CAN AT LEAST GET SERIOUS ABOUT WHO THE GOOD GUYS AND BAD GUYS ARE IN A WORLD OF BOMBERS FBI OFFICIALS APPEAR TO BE DOING AN OUTSTANDING JOB OF TRACKING DOWN THE MEN WHO MADE THE BOMB BUT SUCH FOOT SOLDIERS WILLING TO COMMIT ACTS OF TERROR ARE A DIME A DOZEN MORAL RESPONSIBILITY AT LEAST RUNS HIGHER UP THE SUSPECTS APPEAR TO BE TIED SPIRITUALLY TO SHEIK OMAR ABDELRAHMAN LATELY RESIDENT OF NEW JERSEY AND BROOKLYN BEFORE ARRIVING HERE SHEIK OMAR WAS BETTER KNOWN AS THE MAN WHO ISSUED THE FATWA CALLING FOR THE ASSASSINATION OF ANWAR SADAT SOME 107 OF HIS FOLLOWERS WERE CONVICTED FOR THEIR ROLES IN THE UPRISING SURROUNDING THAT KILLING SHEIK OMAR HAS ALSO CALLED FOR THE ASSASSINATION OF HOSNI MUBARAK AND THE OVERTHROW OF THE EGYPTIAN GOVERNMENT HE HAS LAUNCHED A RHETORICAL CRUSADE AGAINST TOURISM IN EGYPT HIS FOLLOWERS HAVE DONE THE ACTUAL KILLINGS LEAVING DOZENS DEAD AND THE TOURIST INDUSTRY IN SHAMBLES SHEIK OMAR DENIES ANY ROLE IN THE WORLD TRADE CENTER BOMBING AND WAS ACQUITTED FOR LACK OF EVIDENCE IN THE SADAT ASSASSINATION IT IS QUITE POSSIBLE THAT HE LIMITS HIMSELF TO VERBAL WARFARE STAUNCH BELIEVERS THOUGH WE ARE IN FREE SPEECH WE SOMEHOW CAN'T ACCEPT THAT CALLING FOR SOMEONE'S ASSASSINATION WHEN THERE ARE DOZENS OF FOLLOWERS EAGER TO CARRY IT OUT IS MERELY AN OBNOXIOUS REMARK HENRY II ACCEPTED RESPONSIBILITY FOR THE DEATH OF THOMAS A BECKET NATIONS ON THE FRONT LINE OF TERROR HAVE FOUND NO EASY ACLUAPPROVABLE WAY TO COMBAT IT THERE IS THE EGYPTIAN APPROACH IN WHICH EXTREMISTS ARE SIMPLY ARRESTED AND HELD EN MASSE ON WEDNESDAY EGYPTIAN POLICE ENGAGED IN RUNNING GUN BATTLES WITH ISLAMIC EXTREMISTS LEAVING 20 DEAD OR THERE IS THE ALGERIAN APPROACH IN WHICH THE MILITARY TAKES OVER THE COUNTRY ARRESTS ISLAMIC LEADERS AND FORBIDS ALL GATHERINGS AROUND MOSQUES THE ISRAELIS TRIED A MILDER METHOD DEPORTATION ON THE BLEAK LEBANESE HILLSIDE THE DEPORTED HAMAS LEADERSHIP COULD PLAUSIBLY CLAIM INTO THE HELPFUL LENSES OF THE NETWORKS' CAMERAS THAT THEY HADN'T ACTUALLY STABBED PREGNANT ISRAELIS THEMSELVES FROM ITS OFFICES IN WASHINGTON THE US GOVERNMENT CONDEMNED THE ISRAELI ACTION BUT NOW US PUBLIC OUTRAGE WILL FORCE THIS SAME CONDEMNING GOVERNMENT TO GO AFTER THE LEADERS OF A WORLD TRADE CENTER RING HYPOCRISY ASIDE PERHAPS SOMEONE WILL EXPLAIN WHY WE SHOULD NOT ULTIMATELY DEPORT THIS FRATERNITY OF BOMBERS UP TO NOW DISCUSSION AROUND THIS SUBJECT INEVITABLY RETURNED TO ISRAEL'S OBLIGATIONS BECAUSE OUR POLICY MAKERS INSISTED ON THAT US POLICY HAS LONG LABORED UNDER THE MYTH THAT ALL CONFLICTS IN THE MIDDLE EAST ARE RELATED TO ISRAEL NO MATTER THAT THE FUNDAMENTALISTS' MAIN ATTACKS ARE IN FACT ON SECULAR ARABS SHEIK OMAR AND THE REST OF THE MUSLIM EXTREMISTS REJECT THE PEACE TALKS ALTOGETHER BUT BECAUSE DIPLOMACY CAN'T COMPUTE THE EXTREMISTS THE DIPLOMATS TEND TO SEE RIGHT PAST THEM AND LINK EVERYTHING TO THE WEST BANK NOW THERE IS CERTAINLY NOTHING INTRINSICALLY CONTRADICTORY BETWEEN THE TRUE ISLAMIC FAITH AND DEMOCRATIC FREEDOMS BUT THE EXTREMISTS ARE EXISTENTIALLY OPPOSED TO DEMOCRATIC FREEDOMS IF THE US STILL HAD AN EFFECTIVE INTELLIGENCE AGENCY PERHAPS THE AUTHORITIES WOULD HAVE A CLEARER IDEA OF WHO DANGEROUS EXTREMISTS ARE WHEN THEY APPLY FOR VISAS BUT OUR IMMIGRATION SERVICE IS TOO BUSY CHASING DOWN SUCH THREATS AS ZOE BAIRD'S PERUVIAN NANNY EGYPTIANSTYLE TACTICS ARE OUT OF THE QUESTION FOR THE US BUT IT'S CLEAR THAT THE WORLD TRADE CENTER BOMBING HAS MADE THE PREVIOUS US POLICY OBSOLETE WE INTERPRET THAT POLICY THIS WAY FORGO SERIOUS THINKING ABOUT TERRORISM SPONSORED BY GOVERNMENTS OR FANATICS HOPE THAT THEIR INSTRUMENTS WON'T STRIKE IN THE US AND FORTHRIGHTLY CONDEMN NATIONS THAT MESSILY TRY TO GRAPPLE WITH THE BOMBERS WE HAVE OUR OWN BOMBERS NOW WE NEED A NEW ATTITUDE 9303120041 930312 CREDIT MARKETS BOND PRICES END LITTLE CHANGED IN LIGHT TRADING AS FOCUS TURNS TO TODAY'S PRODUCER PRICE REPORT BY GENE COLTER AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TREASURYS TRADED LIGHTLY YESTERDAY TO FINISH LITTLE CHANGED AS BOND TRADERS CONCENTRATED MORE ON DEBATES ABOUT THE INFLATION OUTLOOK THAN ON TRADING THE BENCHMARK 30YEAR TREASURY BOND DROPPED LESS THAN 1/8 POINT TO 104 19/32 THE BOND'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 676 FROM 674 WEDNESDAY THE 10YEAR NOTE ALSO DROPPED LESS THAN 1/8 POINT TO 101 28/32 TO YIELD 599 UP FROM 596 BOND INVESTORS HAVE BEGUN TO WORRY MORE ABOUT INFLATION IN THE PAST WEEK EVEN THOUGH MANY ECONOMISTS SAY THERE IS LITTLE TO FEAR THE INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE PRODUCER PRICE INDEX ONE MEASURE OF INFLATION IS SCHEDULED TO BE RELEASED TODAY IN THE ABSENCE OF HEAVY TRADING VOLUME YESTERDAY PLAYERS TOOK TO DISPUTING JUST WHAT THAT REPORT WILL MEAN TO RATES AND PRICES IN THE US DEBT MARKET YOU HAVE TWO CAMPS EXPLAINED ANDY BRENNER VICE PRESIDENT OF GOVERNMENT SECURITIES AT NOMURA SECURITIES INTERNATIONAL INC THERE ARE THE PEOPLE THAT STILL CLAIM THE CLINTON ECONOMIC PACKAGE IS GOING TO BE SUCCESSFUL IN CUTTING THE DEFICIT OR SLOWING THE ECONOMY THOSE PEOPLE WANT TO SEE THE MARKET RETURN TO ITS PRICE HIGHS HE SAID AND THEN THERE'S THE CAMP THAT'S BEEN BEARISH ALL ALONG WE'RE PRESENTLY NOT LOOKING AT INFLATION AS AN OBSTACLE IN THE MARKET SAID KEVIN FLANAGAN MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC THE PROBLEM IS WE'LL HAVE TO GET OVER A HURDLE DURING THE PPI REPORT THE TRADITIONAL INDICATOR OF INFLATION IS GOLD PRICES HE SAID AND THEY HAVE GONE NOWHERE BUT DOWN GOLD REALLY ISN'T DISPLAYING ANY INFLATION FEARS DOWN THE ROAD MR FLANAGAN AND OTHER ECONOMISTS SAY THAT THE PPI REPORT COULD SHOW A TECHNICAL ONETIME UPWARD BIAS ON PRICES FOR EXAMPLE A PRODUCTION CUT BY OILPRODUCING NATIONS IN THE MIDDLE EAST AND SOME DAMAGE TO FOOD CROPS DUE TO BAD WEATHER COULD INFLATE PRODUCER PRICES BUT SHOULD DO SO ONLY TEMPORARILY SAID MR FLANAGAN MR BRENNER OF NOMURA ISN'T SO SURE THE STOCK MARKET IS OVERHEATING AND COMMODITIES PRICES ARE UP HE SAID THESE EVENTS MAY BE A WARNING THAT INFLATION COULD BECOME A LEGITIMATE PROBLEM FOR THE BOND MARKET AGAIN HE SAID THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITY PRICES A WIDELY WATCHED INFLATION INDICATOR SETTLED YESTERDAY AT 20766 THAT'S ONLY A 011 GAIN BUT THE CRB INDEX HAS POSTED SIZABLE INCREASES IN PAST SESSIONS IF YOU HAVE A HIGHER PPI NUMBER YOU COULD GET MORE PEOPLE INTO THE BEARISH CAMP CONCLUDED MR BRENNER EARLY IN YESTERDAY'S TRADING SHORTTERM TREASURY ISSUES POSTED SOME TEMPORARY GAINS AFTER A PAIR OF SEEMINGLY CONTRADICTORY DATA HIT THE NEWS WIRES FEBRUARY RETAIL SALES ROSE 03 CAUSING A SAG IN BOND PRICES BUT THEN NEWS OF A 25000 JUMP IN JOBLESS CLAIMS TO 376000 FOR THE WEEK ENDED FEB 27 SENT SHORTTERM TREASURY PRICES UP MOST ANALYSTS HAD EXPECTED A SMALL DECLINE IN FIRSTTIME CLAIMS FOR UNEMPLOYMENT INSURANCE MEANTIME GAINS AT THE SHORT END OF THE MATURITY SPECTRUM WERE ENHANCED BY SOME FLIGHTTOQUALITY BUYING RELATED TO POLITICAL DEVELOPMENTS IN RUSSIA RUSSIAN PRESIDENT BORIS YELTSIN HAS ENTERED INTO A POWER STRUGGLE WITH THE RUSSIAN PARLIAMENT WHICH CANCELED A NATIONAL REFERENDUM THE PRESIDENT HAD SOUGHT TO CEMENT HIS AUTHORITY SOME FOREIGN INVESTORS MOVED THEIR MONEY INTO THE SAFETY OF SHORTTERM US TREASURYS BECAUSE EVENTS IN RUSSIA COULD DAMP INVESTMENT OPPORTUNITIES ABROAD LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 FELL 400 MILLION IN THE WEEK ENDED MARCH 1 THAT DROP PUTS THE M2 GROWTH RATE AT NEGATIVE 18 FROM THE FOURTHQUARTER BASE OF 1992 FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 BONDS OF MARRIOTT CORP SURGED ON NEWS THAT THE HOTEL CHAIN HAD REACHED A PRELIMINARY AGREEMENT WITH SOME OF ITS BONDHOLDERS TO REWORK ITS PLANS TO SPLIT THE COMPANY THE AGREEMENT COULD REMOVE OR ALTER SOME OF THE MORE ONEROUS PARTS OF ITS PLANNED RESTRUCTURING THE AMENDED PLAN INVOLVES AN EXCHANGE OFFER IN WHICH INVESTORS WOULD SWAP THEIR CURRENT ISSUES FOR NEW BONDS WITH A HIGHER INTEREST RATE AND LONGER MATURITY FURTHER MARRIOTT WOULD TRANSFER ABOUT 450 MILLION OF DEBT FROM ITS HOST MARRIOTT REAL ESTATE DIVISION TO MARRIOTT INTERNATIONAL INC ITS PROFITABLE HOTEL MANAGEMENT ARM MOST ACTIVE ISSUES OF MARRIOTT DEBT PICKED UP 2 POINTS OR 20 FOR A BOND WITH A 1000 FACE AMOUNT TRADERS QUOTED MARRIOTT'S 9 1/2 BONDS MATURING IN 2002 AT PAR OR 100 TO YIELD 95 THE PRICE WAS UP FROM 98 WEDNESDAY MARRIOTT'S LONGTERM 10 BONDS MATURING IN 2012 ALSO ROSE 2 POINTS AND NOW TRADE AT A PREMIUM OF 101 1/2 TO YIELD 982 IN LATE OCTOBER AFTER MARRIOTT ANNOUNCED ITS PLANS TO SPLIT INTO TWO COMPANIES THE 10 BONDS WERE QUOTED AS LOW AS 80 WITH YIELDS AS HIGH AS 135 SEASONED CORPORATE BONDS ENDED LITTLE CHANGED YESTERDAY AFTER TRADING WITHIN NARROW RANGES FOR MUCH OF THE DAY TRADERS SAID UTILITY ISSUES CONTINUED TO TRADE LOWER RELATIVE TO TREASURYS MEANWHILE COMPANIES CONTINUED TO ISSUE NEW BONDS DESPITE SIGNS THAT THE CORPORATE BOND MARKET WAS BECOMING SATURATED WITH NEW DEBT ABOUT 22 BILLION OF NEW BONDS WERE PRICED YESTERDAY INCLUDING A THREEPART 900 MILLION OFFERING BY LOCKHEED CORP THE OFFERING WAS THE AEROSPACE COMPANY'S FIRST IN SEVERAL YEARS THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP LOCKHEED SOLD 300 MILLION EACH OF NONCALLABLE FIVEYEAR NOTES AND NONCALLABLE 10YEAR NOTES AND 300 MILLION OF 30YEAR DEBENTURES CALLABLE IN 10 YEARS ALL THREE PARTS WERE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP LATE IN THE DAY A LOCKHEED OFFICIAL SAID THE COMPANY PLANS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL AN ADDITIONAL 600 MILLION OF MEDIUMTERM NOTES IN THE NEXT WEEK OR SO COMBINED WITH YESTERDAY'S OFFERINGS THE MEDIUMTERM NOTES WILL RESULT IN 15 BILLION OF REFINANCING FOR LOCKHEED'S ROUGHLY 15 BILLION ACQUISITION OF GENERAL DYNAMIC CORP'S TACTICAL MILITARY AIRCRAFT BUSINESS BASED IN FORT WORTH TEXAS THAT PURCHASE WAS COMPLETED FEB 28 MEANWHILE MOST BONDS OF AMR CORP DELTA AIR LINES AND UAL CORP SLIPPED AFTER STANDARD & POOR'S CORP LOWERED THE AIRLINE COMPANIES' SENIOR DEBT RATINGS TO JUNKBOND STATUS FOLLOWING THE MOVE WHICH AFFECTED A COMBINED 214 BILLION OF OUTSTANDING DEBT THE SPREAD OR DIFFERENCE BETWEEN YIELDS ON AIRLINE BONDS RELATIVE TO TREASURYS WIDENED BY 030 PERCENTAGE POINT TO 050 PERCENTAGE POINT TRADERS SAID MUNICIPAL BONDS FINISHING NARROWLY MIXED AFTER DRIFTING DURING THE SESSION AMONG ACTIVELY TRADED ISSUES THE JACKSONVILLE FLA ELECTRIC AUTHORITY'S 550 OF 2013 REVENUE REFUNDING BONDS CLOSED UNCHANGED AT 97 7/898 YIELDING 567 THE RHODE ISLAND DEPOSITORS ECONOMIC PROTECTION CORP'S 525 OF 2021 SPECIAL OBLIGATION REFUNDING BONDS WERE 1/8 FIRMER AT 92 5/893 1/4 YIELDING 573 MUNICIPALS STABILIZED AFTER TUMBLING TUESDAY AND WEDNESDAY THE TWODAY FALL OCCURRED PRIMARILY BECAUSE BONDS WERE HEAVILY OVERBOUGHT ON CONCERNS ABOUT HIGHER FEDERAL INCOME TAXES PROPOSED BY THE CLINTON ADMINISTRATION TRADERS SAID THE MARKET ALSO WASN'T ABLE TO ABSORB THE MORE THAN 2 BILLION OF SECURITIES PRICED IN THE PAST FEW DAYS AND THE SUPPLY OVERHANG FUELED SELLING WHILE A NUMBER OF ISSUERS INTRODUCED SECURITIES THIS WEEK DESPITE FALLING PRICES AND RISING YIELDS THE MARKET CONDITIONS HAVE CAUSED AT LEAST ONE BIG ISSUE TO BE PUT ON HOLD THE MASSACHUSETTS WATER RESOURCES AUTHORITY'S 450 MILLION REVENUE REFUNDING BONDS WERE TO HAVE BEEN PRICED YESTERDAY BUT WERE INSTEAD PUT ON A DAYTODAY PRICING BASIS MORTGAGE SECURITIES PRICES WERE LITTLE CHANGED AS THE MARKET CONTINUED TO BE HELD BACK BY PREPAYMENT RISKS IN LIGHT PRIMARY MARKET DEALINGS FREDDIE MAC'S GOLD 1497 REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL WAS DOUBLED TO 600 MILLION BY MERRILL LYNCH & CO THE OFFERING IS BACKED BY THE AGENCY'S GOLD 7 MORTGAGE SECURITIES MEANWHILE THE ASSETBACKED SECURITIES MARKET WAS ACTIVE WITH THE PRICING OF 400 MILLION IN VARIOUS TYPES OF SECURITIES GREEN TREE FINANCIAL CORP A LARGE LENDER OF MANUFACTURED HOUSING LOANS BROUGHT A 250 MILLION ISSUE OF CERTIFICATES BACKED BY THESE LOANS VIA LEHMAN BROTHERS THE FOURPART DEAL INCLUDED 81 MILLION OF CLASS A1 SENIOR CERTIFICATES PRICED AS 490 AT 9975 TO YIELD 498 A SPREAD OF 97 BASIS POINTS ABOVE THE TWOYEAR TREASURY NOTE THE CERTIFICATES WITH A 218YEAR AVERAGE LIFE WERE RATED AA2 BY MOODY'S INVESTORS SERVICE INC 9303120040 930312 BUSINESS BRIEF BANKAMERICA CORP HANOI OFFICE TO BE OPENED FIRST SINCE THE WAR ENDED BANKAMERICA CORP SAID IT PLANS TO OPEN THE FIRST AMERICAN BANK OFFICE IN VIETNAM SINCE THE WAR ENDED IN 1975 A BANKAMERICA SPOKESMAN SAID THE OFFICE WOULD BE OPENED IN HANOI WITHIN A FEW WEEKS THE OFFICE WILL ACT AS A LIAISON WITH VIETNAM AND VIETNAMESE COMPANIES WANTING TO DO BUSINESS OUTSIDE THE COUNTRY BUT WON'T CONDUCT ANY TRADITIONAL BANKING OPERATIONS HE SAID IN DECEMBER THE US GOVERNMENT RELAXED THE STRINGENT EMBARGO ON US COMPANIES DOING BUSINESS WITH VIETNAM THAT HAD BEEN IN PLACE SINCE THE WAR GAINED MOMENTUM IN 1964 UNDER THE NEW RULES SOME US SERVICE COMPANIES CAN DO LIMITED BUSINESS IN VIETNAM SUCH AS SIGNING BUT NOT IMPLEMENTING CONTRACTS AT LEAST A DOZEN BANKS FROM EUROPE AND ASIA ALREADY HAVE OFFICES IN VIETNAM BANKAMERICA SAID ITS OFFICE WILL BE HEADED BY LUU LE WHO HEADED THE BANK'S SAIGON BRANCH BEFORE THE WAR ENDED 9303120039 930312 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 LOCKHEED CORP 900 MILLION THREEPART ISSUE OF SECURITIES WAS PRICED THROUGH DEALERS LED BY FIRST BOSTON CORP THE FIRST PART CONSISTING OF 300 MILLION OF 5 7/8 NOTES DUE MARCH 15 1998 WAS PRICED AT 99509 TO YIELD 599 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTES THE SIZE OF THE PORTION WAS RAISED FROM A PLANNED 200 MILLION THE SECOND PART CONSISTING OF 300 MILLION OF 6 3/4 NOTES DUE MARCH 15 2003 WAS PRICED AT 99141 TO YIELD 687 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 92 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE THE THIRD PART CONSISTING OF 300 MILLION OF 7 7/8 DEBENTURES DUE MARCH 15 2023 WAS PRICED AT 9960 TO YIELD 791 THE ISSUE NONCALLABLE FOR 10 YEARS WAS PRICED AT A SPREAD OF 117 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND ALL THREE PARTS ARE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP CORESTATES CAPITAL CORP 175 MILLION OF 6 5/8 SUBORDINATED NOTES DUE MARCH 15 2005 WAS PRICED AT 9924 TO YIELD 6718 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 77 BASIS POINTS ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC CORESTATES CAPITAL IS A UNIT OF CORESTATES FINANCIAL CORP GEORGIA POWER CO 150 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 1996 WAS WON IN A COMPETITIVE BID THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO THE 4 3/4 ISSUE WAS PRICED AT 99698 TO YIELD 486 A 44 BASIS POINT SPREAD ABOVE THE THREEYEAR TREASURY NOTE THE ISSUE WAS RATED SINGLEA3 BY MOODY AND SINGLEAMINUS BY S&P GEORGIA POWER IS A UNIT A SOUTHERN CO GEORGIA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2023 WAS WON BY JP MORGAN SECURITIES INC THE 7 5/8 BONDS WILL BE REOFFERED AT 9920 TO YIELD 7693 THE BONDS NONREFUNDABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 95 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE BONDS ARE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P GEORGIA POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE MARCH 1 2000 WERE WON IN A COMPETITIVE BID THROUGH UNDERWRITERS LED BY MORGAN STANLEY CO THE 6 BONDS WERE REOFFERED AT 99583 TO YIELD 6074 A 47 BASIS POINT SPREAD ABOVE THE SEVENYEAR TREASURY NOTE THE NONCALLABLE BONDS WERE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P INTERNATIONAL LEASE FINANCE CORP 100 MILLION OF 5 3/4 NOTES DUE MARCH 18 1998 WAS PRICED AT 9950 TO YIELD 5867 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 66 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CUYAHOGA COUNTY OHIO 140 MILLION GENERAL OBLIGATION BONDS WERE PRICED THIS SESSION BY A LEHMAN BROTHERS GROUP INCLUDED IN THE OFFERING ARE THE FOLLOWING THE SERIES 1993 AND SERIES 1993A SECURITIES ARE UNLIMITEDTAX BONDS BUT THE SERIES 1993B SECURITIES ARE LIMITEDTAX BONDS ALL OF THE BONDS HAVE BEEN RATED DOUBLEA BY MOODY'S SERVICE INC FEDERAL HOME LOAN MORTGAGE CORP 600 MILLION OF SERIES GOLD 1497 REAL ESTATE MORTGAGE INVESTMENT CONDUIT MORTGAGE SECURITIES DEAL WAS DOUBLED IN SIZE BY MERRILL LYNCH & CO TO 600 MILLION FROM 300 MILLION THE OFFERING IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES GREEN TREE FINANCIAL CORP 250 MILLION OF MANUFACTURED HOUSING PASSTHROUGH CERTIFICATES WAS PRICED LATE WEDNESDAY IN THREE PARTS BY UNDERWRITERS LED BY LEHMAN BROTHERS INC THE 81 MILLION IN CLASS A1 SENIOR CERTIFICATES WERE PRICED AS 490 SECURITIES AT 9975 TO YIELD 498 A 97 BASIS POINT SPREAD ABOVE THE TWOYEAR TREASURY NOTE THE CERTIFICATES HAVE A 218YEAR AVERAGE LIFE AND WERE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY DUFF & PHELPS CREDIT RATING CO THE 64 MILLION IN CLASS A2 SENIOR CERTIFICATES WERE PRICED AS 610 SECURITIES AT 99 20/32 TO YIELD 6206 A 98 BASIS POINT SPREAD ABOVE THE FIVEYEAR TREASURY NOTE THE CERTIFICATES HAVE A 526YEAR AVERAGE LIFE AND WERE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY DUFF & PHELPS THE 754 MILLION IN CLASS A3 SENIOR CERTIFICATES WERE PRICED AS 690 SECURITIES AT 99 18/32 TO YIELD 7025 A 107 BASIS POINT SPREAD ABOVE THE 10YEAR TREASURY NOTE THE CERTIFICATES HAVE A 958YEAR AVERAGE LIFE AND WERE RATED DOUBLEA BY MOODY'S DOUBLEAPLUS BY DUFF & PHELPS DUFF & PHELPS CORP PUBLIC OFFERING OF 27 MILLION OF SHARES WAS PRICED AT 1775 ON A POSTSPLIT BASIS DUFF & PHELPS SAID ALL OF THE SHARES OFFERED ARE BEING SOLD BY FREEMAN SPOGLI & CO THE COMPANY'S LARGEST SHAREHOLDER THE OFFERING IS BEING MADE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO AND PRUDENTIAL SECURITIES INC ST JOHN KNITS INC INITIAL OFFERING OF 69 MILLION SHARES WAS PRICED AT 17 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC ALL OF THE SHARES WERE OFFERED BY ESCADA AG IN OFFERINGS IN THE US CANADA AND IN INTERNATIONAL MARKETS ST JOHN KNITS WILL RECEIVE NO PROCEEDS FROM THE OFFERING KFW INTERNATIONAL FINANCE INC GERMAN AGENCY 1 BILLION FRENCH FRANCS OF ZEROCOUPON EUROBONDS DUE JULY 2 2003 AT ISSUE AND REOFFER PRICE 4815 VIA CREDIT LYONNAIS BONDS YIELD 739 ANNUALLY A SPREAD OF 10 BASIS POINTS ABOVE COMPARABLE FRENCH GOVERNMENT NOTE GUARANTOR KFW KREDITANSTALT FUR WIEDERAUFBAU LAFARGE COPPEE FRANCE 1 BILLION FRENCH FRANCS OF 8 EUROBONDS DUE APRIL 7 2000 AT ISSUE PRICE 101005 VIA CREDIT COMMERCIAL DE FRANCE REOFFERED AT 9948 TO YIELD 810 A MARGIN OF 85 BASIS POINTS ABOVE FRENCH TREASURY'S 8 1/2 BOND DUE 2000 ALLIANCE & LEICESTER BUILDING SOCIETY UK 75 MILLION OF 9 3/4 EUROBONDS DUE APRIL 2 2008 AT ISSUE PRICE 101177 VIA BARING BROTHERS AND BARCLAYS DE ZOETE WEDD SECURITIES REOFFERED AT 99302 TO YIELD 9841 ANNUALLY 961 SEMIANNUALLY A MARGIN OF 155 BASIS POINTS ABOVE YIELD ON 9 UK GILT DUE 2008 WORLD BANK SUPRANATIONAL 200 MILLION MARKS OF CAPPED FLOATING RATE EURONOTES DUE APRIL 2003 AT ISSUE PRICE PAR VIA COMMERZBANK AG NOTES PAY SIXMONTH MARK LIBOR PLUS 1/4 POINT SUBJECT TO MAXIMUM INTEREST RATE OF 7 1/4 FROM APRIL 1995 TO MATURITY BORROWER ALSO ISSUING 20000 INTEREST RATE FLOOR CERTIFICATES EACH GIVING HOLDER RIGHT FROM APRIL 1995 TO APRIL 2003 TO RECEIVE SEMIANNUAL INTEREST BASED ON NOMINAL 10000 MARK BOND AT 7 MINUS PREVAILING SIXMONTH DEUTSCHE MARK LIBOR WITH MINIMUM OF ZERO EACH CERTIFICATE COSTS 695 MARKS COUNCIL OF EUROPE SUPRANATIONAL 100 MILLION OF FLOATING RATE EURONOTES DUE APRIL 2000 AT ISSUE AND REOFFER PRICE 9995 VIA MORGAN STANLEY INTERNATIONAL INTEREST PAID SEMIANNUALLY AND CALCULATED BY FOLLOWING FORMULA CONSTANT MATURITY TREASURY A REFERENCE RATE OF FEDERAL RESERVE BANK MULTIPLIED BY 05 PLUS 160 BASIS POINTS MINIMUM COUPON 5 CREDIT LOCAL DE FRANCE FRANCE 100 MILLION OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE APRIL 8 2005 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL INTEREST PAID SEMIANNUALLY AT 3/16 BELOW LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 DRESDNER BANK AG GERMAN 100 MILLION OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE APRIL 8 2003 AT ISSUE PRICE PAR VIA DRESDNER BANK AG AND LEHMAN BROTHERS INTERNATIONAL INTEREST PAID SEMIANNUALLY AT 25 BASIS POINTS BELOW LIBOR FOR US DOLLARS SUBJECT TO MINIMUM COUPON 5 AND MAXIMUM 8 DAIWA PB LTD SPECIAL PURPOSE VEHICLE 20 BILLION YEN OF UNDATED SUBORDINATED FLOATING RATE NOTES AT ISSUE PRICE PAR VIA DAIWA BANK CAPITAL MANAGEMENT AND NOMURA INTERNATIONAL PLC INTEREST PAID AT JAPAN'S LONGTERM PRIME RATE LTPR LESS 10 BASIS POINTS FOR FIRST FIVE YEARS LTPR PLUS 10 BASIS POINTS FOR YEARS SIX TO 10 AND LTPR PLUS 60 BASIS POINTS THEREAFTER GUARANTOR DAIWA BANK LTD STEIERISCHE WASSERKRAFT AG AUSTRIA 100 MILLION SWISS FRANCS OF 4 3/4 PUBLIC BONDS DUE APRIL 22 2003 PRICED AT 10200 VIA UNION BANK OF SWITZERLAND 9303120038 930312 ADMINISTRATION MAY APPROVE USAIR ACCORD WHITE HOUSE LEANS TOWARD CLEARING CODESHARING WITH BRITISH AIRWAYS BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS LEANING TOWARD APPROVING AN ARRANGEMENT BETWEEN BRITISH AIRWAYS AND USAIR THAT WOULD BOLSTER THE STRUGGLING US CARRIER AND EXTEND THE BRITISH AIRLINE'S REACH INTO THE LUCRATIVE AMERICAN MARKET THE ADMINISTRATION IS INCLINED TO APPROVE SOME FORM OF A COMPUTER RESERVATION CODESHARING AGREEMENT BETWEEN BRITISH AIRWAYS AND USAIR OFFICIALS INDICATED THE ADMINISTRATION PROBABLY WILL LET STAND THE BRITISH CARRIER'S 300 MILLION INVESTMENT IN JANUARY IN THE USAIR GROUP INC UNIT THE INVESTMENT GAVE BRITISH AIRWAYS 199 OF USAIR'S VOTING STOCK AND 246 OF ITS TOTAL EQUITY TRANSPORTATION SECRETARY FEDERICO PENA COULD HOLD A NEWS CONFERENCE TO ANNOUNCE THE ADMINISTRATION'S DECISION AS EARLY AS TODAY ADMINISTRATION OFFICIALS SAID BUT A TRANSPORTATION DEPARTMENT SPOKESMAN CAUTIONED THE DECISION HASN'T BEEN FINALIZED THE DECISION HAS BEEN GREATLY COMPLICATED BY A FIERCE DEBATE ABOUT FOREIGN CONTROL OVER US AIRLINES AND THE TERMS OF THE BILATERAL AVIATION AGREEMENT BETWEEN THE U S AND UK WHICH LIMITS THE ACCESS OF US CARRIERS TO BRITISH AIRPORTS AND VICE VERSA AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIR LINES AND DELTA AIR LINES CONTEND THAT THE BRITISH AIRWAYSUSAIR ARRANGEMENT INCLUDING CODESHARING WOULD OPEN UP MUCH OF THE US MARKET TO THEIR BRITISH RIVAL WITHOUT ANY RECIPROCAL CONCESSIONS FOR US CARRIERS LOBBYISTS FOR THE BIG THREE AIRLINES ARE LIKELY TO MOUNT AN ELEVENTHHOUR EFFORT TO DISSUADE WHITE HOUSE OFFICIALS AND MR PENA FROM APPROVING ANY BRITISH AIRUSAIR ARRANGEMENT THEY MAY ARGUE THAT ANY DECISION SHOULD BE POSTPONED UNTIL A BLUERIBBON COMMISSION ON THE AIRLINE INDUSTRY HAS STUDIED SUCH ISSUES AS FOREIGN INVESTMENT IN US CARRIERS CONGRESS IS EXPECTED TO CREATE THE 15MEMBER PANEL WITHIN A FEW WEEKS UNDER CODESHARING AIRLINES SHARE THEIR COMPUTER CODES FOR CERTAIN INTERLINE CONNECTIONS TO MARKET THEIR FLIGHTS BETTER CODESHARING AS ENVISIONED BY USAIR AND BRITISH AIRWAYS WOULD ULTIMATELY ALLOW THEM TO PROVIDE SEAMLESS SERVICE FROM 38 US CITIES TO KEY TRANSATLANTIC GATEWAYS SERVED BY BRITISH AIRWAYS INITIALLY THERE WOULD BE CODESHARING ON FLIGHTS BETWEEN PHILADELPHIA AND THREE CITIES SYRACUSE NY ROCHESTER NY AND CLEVELAND IN RESPONSE TO BRITISH PRESS REPORTS THAT THE ADMINISTRATION WAS POISED TO APPROVE THE CODESHARING PROPOSAL THE INDUSTRY'S BIG THREE SAID IN A STATEMENT THAT THEY WOULD BE BITTERLY DISAPPOINTED IF THE TRANSPORTATION DEPARTMENT GRANTED APPROVAL WITHOUT FIRST SECURING EQUIVALENT ECONOMIC OPPORTUNITIES FOR ALL US AIRLINES THE BIG THREE SAID THAT CODESHARING APPROVAL MUST BE CONTINGENT ON A NEW BILATERAL AGREEMENT GIVING BA UNLIMITED ACCESS TO THE US AVIATION MARKETPLACE FORFEITS ANY NEGOTIATING LEVERAGE THE GOVERNMENT MIGHT HAVE WITH THE BRITISH THEY ASSERTED MEANWHILE IN ARLINGTON VA USAIR OFFICIALS WERE AWAITING A READING FROM THE ADMINISTRATION ON CODESHARING AND OTHER MATTERS WE HAVE RECEIVED NO OFFICIAL WORD A USAIR SPOKESWOMAN SAID IN DECEMBER BRITISH AIR ABANDONED A PLAN TO INVEST 750 MILLION IN USAIR IN THE FACE OF LIKELY BUSH ADMINISTRATION OPPOSITION THE INVESTMENT WOULD HAVE GIVEN BRITISH AIRWAYS ONLY 21 VOTING CONTROL BELOW THE STATUTORY CAP OF 25 ON FOREIGN OWNERSHIP OF VOTING STOCK BUT A BIG STUMBLING BLOCK WAS A PROVISION GIVING BRITISH AIRWAYS VETO POWER OVER CERTAIN KEY DECISIONS BY THE USAIR BOARD THE DAY AFTER PRESIDENT CLINTON'S INAUGURATION BRITISH AIRWAYS TOOK A NEW TACK ANNOUNCING A THREEPHASE INVESTMENT PLAN THAT BEGAN WITH A 300 MILLION INJECTION INTO USAIR IN RETURN FOR PREFERRED STOCK BRITISH AIRWAYS' VOTING CONTROL IS TO RISE TO 218 FROM 199 IN MAY WHEN USAIR SHAREHOLDERS ARE EXPECTED TO APPROVE THE PLAN AT THE COMPANY'S ANNUAL MEETING UNDER THE PLAN THE PREFERRED STOCK CAN BE CONVERTED TO COMMON STOCK AT 1950 A SHARE AFTER FOUR YEARS THE STOCK IN THE MEANTIME WOULD PAY BRITISH AIRWAYS A 7 ANNUAL DIVIDEND AN ADDITIONAL 200 MILLION WOULD BE INVESTED AFTER THREE YEARS WITH A CONVERSION PRICE OF 2050 A SHARE AND A FINAL 250 MILLION WOULD BE INVESTED AFTER FIVE YEARS WITH A CONVERSION PRICE OF 2182 A SHARE BUT ONLY IF CONGRESS RAISED THE STATUTORY CAP TO 49 AS SOME LAWMAKERS HAVE SUGGESTED TREASURY SECRETARY LLOYD BENTSEN MET WITH WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY ON WEDNESDAY TO REVIEW THE IMPLICATIONS OF THE BRITISH AIRWAYSUSAIR ARRANGEMENT PARTICULARLY FROM THE STANDPOINT OF MR BENTSEN'S HOMESTATE CARRIER AMERICAN AIRLINES 9303120037 930312 BUSINESS BRIEF GENERAL PUBLIC UTILITIES CORP PENNSYLVANIA CHANGES MIND ON DECOMMISSIONING COSTS IN A SURPRISING REVERSAL PENNSYLVANIA REGULATORS SAID GENERAL PUBLIC UTILITIES CORP'S UNITS COULD COLLECT MUCH OF THE DECOMMISSIONING COSTS ASSOCIATED WITH THE THREE MILE ISLAND REACTOR DAMAGED IN A 1979 ACCIDENT EARLIER THIS YEAR PENNSYLVANIA REGULATORS VOTED 21 TO DISALLOW METROPOLITAN EDISON CO WHICH OWNS 50 OF THE REACTOR FROM RECOVERING DECOMMISSIONING COSTS FOR THE DAMAGED REACTOR TMI2 THROUGH THE RATE PROCESS METROPOLITAN EDISON FILED A PROTEST FEB 5 GPU PARSIPPANY NJ OWNS THE DAMAGED REACTOR THROUGH ITS METROPOLITAN EDISON PENNSYLVANIA ELECTRIC CO AND JERSEY CENTRAL POWER & LIGHT CO UNITS AT THAT TIME METROPOLITAN EDISION TOOK A 1162 MILLION CHARGE AGAINST 1992 EARNINGS PENNSYLVANIA ELECTRIC WHICH OWNS 25 OF THE REACTOR TOOK A 547 MILLION CHARGE GPU SAID THOSE PREVIOUSLY ANNOUNCED CHARGES WILL SUBSTANTIALLY BE ELIMINATED WITH THE NEW RULING COMMISSION CHAIRMAN DAVID W ROLKA WHO CHANGED HIS MIND ON THE ISSUE SAID THE OBLIGATION TO DECOMMISSION THE PLANT WAS IMPOSED AS SOON AS THE NUCLEAR FUEL WAS LOADED AT THE PLANT HE ADDED THAT GPU AND ITS UNITS SHOULD STILL COVER ACCIDENTRELATED COSTS WITHOUT CHARGING RATEPAYERS 9303120036 930312 WORLD MARKETS SHARES FIRM A BIT IN TOKYO WEAKEN IN LONDON AND CLIMB TO ANOTHER 1993 HIGH IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FIRMED MARGINALLY THURSDAY AND THE MAIN INDEX POSTED ITS FIFTH CONSECUTIVE GAIN ALBEIT A SMALL ONE CAUTIOUS LONDON INVESTORS LEFT PRICES WEAKER BUT FRANKFURT SHARES CLIMBED TO A 1993 RECORD FOR THE SECOND TIME THIS WEEK IN TOKYO THE NIKKEI 225STOCK INDEX WHICH EDGED UP 1033 POINTS WEDNESDAY ROSE 4616 TO 1790479 ON FRIDAY THE NIKKEI INDEX ROSE 2357 POINTS TO CLOSE THE MORNING SESSION AT 1792836 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 450 MILLION SHARES DOWN FROM 5411 MILLION SHARES ON WEDNESDAY GAINERS NARROWLY TOPPED LOSERS 532471 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ADDED 211 POINTS WEDNESDAY ROSE 246 TO 134434 HEAVY BUYING OF BLUECHIP EXPORT ISSUES BY US HEDGE FUNDS AND OTHER INVESTORS HELPED THE NIKKEI SPEND MUCH OF THE DAY ABOVE 18000 BUT RUMORS AND NEWS REPORTS THAT RUSSIAN PRESIDENT BORIS YELTSIN COULD BE OUSTED PROMPTED A SELLOFF IN THE AFTERNOON MARKING THE THIRD SESSION IN A ROW THAT THE NIKKEI REGAINED THE 18000 LEVEL ONLY TO FALL OFF TOWARD THE CLOSE MOST TOKYO INVESTORS REMAINED BULLISH ABOUT STOCKS' PROSPECTS IN COMING WEEKS WITH TODAY'S SPECIAL QUOTATION TO SETTLE PRICES ON MARCH NIKKEI FUTURES AND OPTIONS CONTRACTS ANY PRICE DECLINES WILL BE LARGELY IGNORED AS SOME INDEX MANIPULATION WAS EXPECTED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 33 POINTS TO 29534 THE FT 30STOCK INDEX DROPPED 5 POINTS TO 22945 VOLUME WAS 8223 MILLION SHARES UP FROM 6865 MILLION SHARES A DAY EARLIER SENTIMENT WAS CAUTIOUS IN A SESSION DOMINATED BY CORPORATE EARNINGS RELEASES AND INVESTORS DISPLAYED CONTINUING RELUCTANCE AHEAD OF NEXT TUESDAY'S BRITISH BUDGET PRESENTATION THE FTSE 100 INDEX OPENED ON A FIRM NOTE BUT SLUMPED 14 POINTS IN MIDMORNING ANALYSTS SAID THE MARKET HADN'T PRICED STOCKS FOR POTENTIAL BAD NEWS IN THE FISCAL 1994 BUDGET WHICH COULD CONTAIN SOME SHOCKS SUCH AS A PROPOSED INCREASE IN THE VALUEADDED TAX THIS COULD HURT CONSUMERGOODS STOCKS FURTHER IN BRITAIN'S ECONOMIC SLOWDOWN BUT INVESTORS ALSO WERE HOPING FOR A POTENT BOOST FROM A LONGEDFOR GERMAN INTERESTRATE CUT IN FRANKFURT THE DAX 30STOCK INDEX GAINED 772 POINTS TO 171740 A NEW CLOSING HIGH NEAR THE SESSION'S PEAK OF 171821 AFTER A WEAK OPENING DOMINATED BY WORRIES ABOUT RUSSIA'S POLITICAL TURMOIL SHARE PRICES RECOVERED AS PERCEPTIONS ABOUT A POSSIBLE COMPROMISE GREW EVEN THOUGH LEGISLATORS VOTED TO STRIP PRESIDENT YELTSIN OF MORE OF HIS POWERS AND CANCELED A REFERENDUM HE HAD CALLED IN A BID TO CEMENT HIS POWER MILAN STOCKS ROSE AS INVESTORS SHRUGGED OFF THE LATEST DEVELOPMENTS IN ITALY'S CORRUPTION SCANDAL AND FOCUSED INSTEAD ON TECHNICAL CONSIDERATIONS LINKED TO EXPIRATION OF MONTHLY STOCK OPTIONS SYDNEY SHARES STRENGTHENED FOR THE FOURTH CONSECUTIVE SESSION LIFTING THE MARKET'S MAIN BAROMETER TO ANOTHER EIGHTMONTH HIGH INVESTORS BET THAT THE CONSERVATIVE LIBERALNATIONAL COALITION WOULD WIN TOMORROW'S AUSTRALIAN ELECTION AND WERE BUOYED BY STRONG OVERSEAS MARKETS BUT IN HONG KONG SHARES LOST GROUND ON BROAD PROFITTAKING DESPITE A MIDDAY RALLY SPARKED BY CHINA'S CONTACT WITH BRITAIN ON HOLDING TALKS ABOUT HONG KONG'S POLITICAL FUTURE BEFORE THE TERRITORY REVERTS TO CHINESE SOVEREIGNTY IN 1997 AND IN SEOUL JITTERS ABOUT AN IMMEDIATE SOUTH KOREAN GOVERNMENT CRACKDOWN ON CORRUPTION AND FINANCIAL REFORMS SENT SHARE PRICES SHARPLY LOWER SINGAPORE STOCKS ENDED LOWER IN A LATE DROP ON REPORTS OF RUSSIAN POLITICAL TENSIONS TAIPEI SHARE PRICES REBOUNDED STRONGLY AFTER FIVE LOSING SESSIONS MANILA SHARES SLUMPED AS THE MARKET CORRECTED FROM OVERBOUGHT LEVELS AND INVESTORS TOOK PROFITS AMONG CORPORATE DEVELOPMENTS IN LONDON ROLLSROYCE ROSE 15 PENCE OR 12 TO 1315 PENCE 189 THE ENGINEERING AND AEROSPACE CONCERN POSTED A 1992 PRETAX LOSS OF 184 MILLION 2639 MILLION COMPARED WITH YEAREARLIER PROFIT OF 51 MILLION THE LOSS RESULTED LARGELY FROM A SPECIAL CHARGE OF 268 MILLION OF WHICH 230 MILLION WAS RELATED TO RESTRUCTURING COSTS THE DIVIDEND WAS CUT 31 TO 5 PENCE A SHARE WPP GROUP SOARED 10 OR 17 TO 70 THE ADVERTISING COMPANY'S 1992 PRETAX PROFIT BEFORE SPECIAL ITEMS ROSE 40 TO 538 MILLION WPP ALSO SAID THAT IT WOULD LAUNCH AN 88 MILLION RIGHTS ISSUE TO STRENGTHEN ITS BALANCE SHEET AND HELP REDUCE SHORTTERM DEBT AND THAT IT PLANNED TO RESUME PAYING DIVIDENDS IN 1993 FORECASTING AN ANNUAL PAYOUT OF 1 PENCE A SHARE GLAXO HOLDINGS PLUNGED 19 OR 28 TO 668 DRAGGING THE LONDON MARKET LOWER ERNEST MARIO QUIT AS CHIEF EXECUTIVE AND DEPUTY CHAIRMAN OF THE DRUG COMPANY WHICH NAMED RICHARD SYKES THE RESEARCH AND DEVELOPMENT DIRECTOR TO SUCCEED HIM AND APPOINTED FRANZ HUMER COMMERCIAL POLICY DIRECTOR TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER RTZ SLUMPED 13 OR 19 TO 675 THE MINING CONCERN'S 1992 PROFIT ROSE 21 TO 249 MILLION COMPARED WITH A YEAREARLIER 205 MILLION THAT WAS RESTATED FROM 308 MILLION UNDER BRITAIN'S NEW FINANCIAL ACCOUNTING STANDARDS THE MARKET WAS DISAPPOINTED ABOUT THE LATEST EARNINGS IN FRANKFURT BAYER ROSE 280 MARKS OR 1 TO 27980 MARKS 16796 THE CHEMICAL COMPANY CUT ITS 1992 DIVIDEND 15 TO 11 MARKS A SHARE IN LINE WITH ANALYSTS' EXPECTATIONS AND THE MARKET WAS ENCOURAGED THAT BAYER DIDN'T CHOP THE PAYOUT MORE DEEPLY BAYER'S 1992 PROFIT FELL 17 TO 15 BILLION MARKS 9005 MILLION ALSO AS ANTICIPATED DAIMLERBENZ ADDED 70 PFENNIGS TO 62720 MARKS THE INDUSTRIAL CONGLOMERATE EXPECTS TO POST 1992 PROFIT OF ABOUT 15 BILLION MARKS 9005 MILLION A 21 DROP FROM A YEAR EARLIER AND IT PREDICTED AN UNSPECIFIED DECLINE IN 1993 EARNINGS DAIMLER WILL POST 1992 RESULTS ON APRIL 6 DAIMLER ALSO SAID IT WOULD INVEST 2 BILLION MARKS IN EASTERN GERMANY OVER THE NEXT FIVE YEARS AND INCREASE ITS WORK FORCE THERE 46 TO 15000 SIEMENS ROSE 380 TO 66920 THE ELECTRONICS COMPANY AT THE ANNUAL MEETING WARNED THAT PROFIT FOR THE YEAR ENDING SEPT 30 COULD DECLINE IN MIDJANUARY SEIMENS EXPECTED TO MATCH YEAREARLIER EARNINGS OF 195 BILLION MARKS IN ZURICH ABB ASEA BROWN BOVERI ROSE 30 SWISS FRANCS TO 4070 FRANCS 265079 THE SWISSSWEDISH POWER TRANSPORTATION AND INDUSTRIAL COMPANY'S 1992 OPERATING EARNINGS DROPPED 53 TO 18 BILLION MOSTLY BECAUSE OF RECESSIONARY ECONOMIES BECAUSE OF HIGHER TAX RATES AND FEWER CAPITAL GAINS ABB'S NET INCOME FELL 17 TO 505 MILLION BUT THE COMPANY SAID IT IS FINANCIALLY STRONG WITH NO DEBT AND STRONG MARKET POSITIONS 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 9303120035 930312 BUSINESS BRIEF SYNOPSYS INC SUITS AGAINST CADENCE ALLEGE MISAPPROPRIATION OF SECRETS SYNOPSYS INC SAID IT FILED LAWSUITS IN FEDERAL AND STATE COURTS IN OHIO AND CALIFORNIA CHARGING CADENCE DESIGN SYSTEMS INC WITH MISAPPROPRIATING TRADE SECRETS ABOUT A COMPUTER SIMULATOR SYSTEM IN A LAWSUIT FILED IN US DISTRICT COURT IN CLEVELAND SYNOPSYS BASED IN MOUNTAIN VIEW CALIF SAID CADENCE PURCHASED THE DATA AFTER ITS DEVELOPERS SOLD IT AS A PROPRIETARY TRADE SECRET TO SYNOPSYS A SIMILAR CHARGE WAS FILED WEDNESDAY IN CALIFORNIA SUPERIOR COURT IN SAN JOSE CALIF SYNOPSYS'S LAWSUITS CHARGE THAT THE DATA WAS DEVELOPED BY TWO FORMER EMPLOYEES OF ZYCAD CORP FREMONT CALIF SYNOPSYS SAID IT BOUGHT THE DATA FROM ZYCAD AND THAT THE EMPLOYEES SUBSEQUENTLY SET UP THEIR OWN OHIO COMPANY SEED SOLUTION INC AND SOLD THE DATA TO CADENCE OF SAN JOSE IN A STATEMENT CADENCE DENIED ANY WRONGDOING AND SAID IT HAD HIRED ITS OWN EXPERTS WHO ASSURED THE COMPANY IT WAS BUYING ORIGINAL INFORMATION FROM SEED OFFICIALS OF SEED COULDN'T BE REACHED 9303120034 930312 BUSINESS BRIEF JOHN LABATT LTD COMPANY TO KEEP US DAIRY OPERATIONS FOR PRESENT TIME JOHN LABATT LTD SAID IT WILL PROCEED WITH A PLAN TO SPLIT OFF TO ITS SHAREHOLDERS THE COMPANY'S CANADIAN DAIRY BUSINESS BUT THAT IT WILL KEEP FOR THE TIME BEING ITS US DAIRY OPERATIONS SEPARATELY LABATT BASED IN LONDON ONTARIO REPORTED PROFIT OF 30 MILLION CANADIAN DOLLARS US241 MILLION OR 31 CANADIAN CENTS A SHARE FOR THE FISCAL THIRD QUARTER ENDED JAN 31 DOWN 14 FROM C35 MILLION OR 40 CANADIAN CENTS A SHARE A YEAR EARLIER RESULTS INCLUDED A NONRECURRING PRETAX CHARGE OF C16 MILLION SALES FELL SLIGHTLY TO C953 MILLION FROM C959 MILLION LABATT SAID IN THE FALL IT WOULD SPLIT OFF ALL ITS DAIRY OPERATIONS AS PART OF A LONGTERM STRATEGY TO FOCUS ON BREWING ITS DECISION TO SPLIT OFF JUST THE CANADIAN OPERATIONS AT THIS TIME COMES AFTER HAVING HELD DISCUSSIONS WITH PARTIES INTERESTED IN BUYING THE DAIRY ASSETS LABATT SAID LABATT SAID THAT IT HASN'T DECIDED WHAT COURSE TO TAKE WITH REGARD TO ITS US BUSINESS AND THAT DISCUSSIONS WITH INTERESTED PARTIES ARE CONTINUING 9303120033 930312 TECHNOLOGY & HEALTH COMPAQ PLANS A MAILORDER OPERATION PUTTING IT IN DIRECT RIVALRY WITH DELL BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP HOPING TO TAP INTO ONE OF THE COMPUTER INDUSTRY'S FASTESTGROWING SALES CHANNELS SAID IT PLANS TO LAUNCH A FULLSCALE MAILORDER OPERATION THE MOVE WHICH BEGINS NEXT WEEK WITH THE MAILING OF MORE THAN ONE MILLION COMPAQ CATALOGUES PLACES THE HOUSTONBASED COMPANY IN DIRECT COMPETITION WITH DELL COMPUTER CORP THE AUSTIN TEXAS MAILORDER PERSONAL COMPUTER COMPANY THAT HAS IN RECENT YEARS EMERGED AS ONE OF COMPAQ'S LOUDEST RIVALS THOUGH COMPAQ ISN'T EXPECTED TO ACCEPT SALES ORDERS UNTIL MARCH 22 THE MOVE ALREADY HAS TOUCHED OFF A SHARP SERIES OF BARBS BETWEEN THE TWO COMPANIES' CEOS THE HYPE FACTOR HERE IS VERY VERY HIGH SAYS DELL CHAIRMAN MICHAEL S DELL IN RESPONSE TO A COMPAQ NEWS RELEASE PITCHING THE NEW OPERATION CALLED COMPAQ DIRECTPLUS AS A THREAT TO THE INDUSTRY'S CURRENT MAILORDER PLAYERS WHO ARE THEY TRYING TO KID SAYS ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE OFFICER THE DELL MODEL OF COMPUTER SALES IS GOING TO BE SHORTLIVED BICKERING ASIDE ANALYSTS SAY IT'S CLEAR COMPAQ IS GIRDING FOR A BATTLE IN ADDITION TO THE CATALOGUES AND AT LEAST ONE MILLION OTHER DIRECTMAIL PAMPHLETS DUE OUT SOON THE COMPANY HAS SET UP A PHONE BANK CAPABLE OF RECEIVING 10000 CALLS A WEEK AND EXPECTS TO HIRE AS MANY AS 150 PEOPLE THIS YEAR TO STAFF THE OPERATION THE COMPANY EVEN HAS DRAWN PART OF ITS TELEPHONE SALES TEAM FROM DELL COMPUADD CORP AND OTHER MAILORDER VENDORS ROSS COOLEY COMPAQ'S SENIOR VICE PRESIDENT PREDICTED THAT THE NEW BUSINESS WILL GENERATE AS MUCH AS 170 MILLION IN REVENUE THIS YEAR OR ABOUT 10 OF COMPAQ'S US REVENUE IN 1992 MR COOLEY SAID THE OPERATION IS PART OF A MOVE BY COMPAQ TO BROADEN SALES CHANNELS BEYOND THE BASE OF TRADITIONAL COMPUTER DEALERS THAT HAS BEEN THE BACKBONE OF ITS BUSINESS HE SAID THOSE DEALERS WHICH ACCOUNTED FOR NEARLY HALF OF INDUSTRY SALES IN 1991 ARE EXPECTED TO GENERATE ONLY 27 OF SALES BY 1995 OVER THE SAME PERIOD THE COMPANY ESTIMATES THAT MAILORDER AND DIRECT SALES WILL JUMP TO 29 FROM 22 OF THE TOTAL PC PIE MR COOLEY SAID THE MAILORDER EFFORT INITIALLY WILL BE FOCUSED ON SMALLBUSINESS OWNERS AND HOME PC USERS THOUGH THE APPEAL EVENTUALLY MAY BE BROADENED TO INCLUDE LARGE CORPORATE ACCOUNTS AS WELL ANALYSTS THOUGH SAY THE COMPAQ SHIFT WON'T COME WITHOUT PAIN THEY SAY THE COMPANY WILL HAVE TO MOVE QUICKLY TO CALM ITS EXISTING DEALERS WHO MAY FEAR A LOSS OF BUSINESS AND IN COMPETING AGAINST THE LIKES OF DELL THEY SAY COMPAQ HAS SET ITS SIGHTS ON COMPANIES THAT HAVE GROWN UP WITH A MAILORDER BUSINESS MODEL WITH ITS ULTRALOW COSTS HUGE DATABASES OF CUSTOMER INFORMATION AND NAME RECOGNITION AMONG MAILORDER BUYERS EVEN IF COMPAQ HITS ITS REVENUE TARGET THEY NOTE THAT THE COMPANY'S MAILORDER SALES WILL ACCOUNT FOR ONLY ABOUT 01 OF THE WORLD PERSONAL COMPUTER BUSINESS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY COMPAQ STOCK WAS QUOTED AT 50625 UP 625 CENTS DELL STOCK FELL 625 CENTS TO CLOSE AT 35875 IN NATIONAL OVERTHECOUNTER TRADING I'M NOT SURE THIS REALLY DOES MUCH TO CHANGE THE COMPETITIVE LANDSCAPE SAID MARIANNE WOLK A PERSONALCOMPUTER ANALYST AT PRUDENTIAL SECURITIES IN NEW YORK THESE COMPANIES HAVE BEEN COMPETING AGAINST EACH OTHER FOR SOME TIME 9303120032 930312 WHO'S NEWS TENNECO INC TENNECO INC HOUSTON BARRY R SCHUMAN WAS NAMED SENIOR VICE PRESIDENT HUMAN RESOURCES AND MATTHEW W APPEL VICE PRESIDENT FINANCIAL ANALYSIS AND PLANNING OF THIS MANUFACTURING AND NATURALGASPIPELINE CONCERN MR SCHUMAN 51 YEARS OLD WAS MOST RECENTLY VICE PRESIDENT ORGANIZATIONAL RESOURCES MR APPEL 37 WAS FORMERLY CONTROLLER AT TENNECO'S NEWPORT NEWS SHIPBUILDING DIVISION IN VIRGINIA 9303120031 930312 RTC DON'T BLAME ME BLAME CONGRESS BY EDWARD L MORRIS DIRECTORS AND OFFICERS OF BANKS AND THRIFTS ARE GETTING MIXED SIGNALS FROM WASHINGTON PRESIDENT CLINTON ON WEDNESDAY ANNOUNCED PROPOSALS TO REDUCE THE REGULATORY BURDENS ON LENDERS YET DOWN ON CAPITOL HILL CONGRESS IS TELLING THE RESOLUTION TRUST CORP AND OTHER BANKING AGENCIES TO STEP UP THEIR LITIGATION ACTIVITIES AGAINST ANYONE IT THINKS MADE A BAD JUDGMENT CALL WHILE MANAGING A FINANCIAL INSTITUTION CLEARLY UNTIL BANKERS FEEL MORE CONFIDENT THAT THEY WON'T BE SUED BY THEIR GOVERNMENT FOR FLAWED BUSINESS DECISIONS THE ADMINISTRATION'S WELLINTENTIONED INCENTIVES CAN'T ACCOMPLISH MUCH BUT FROM MY VANTAGE POINT AS ONE OF 14 DEFENDANTS IN THE RTC'S IMPROBABLE LAWSUIT AGAINST THE FORMER DIRECTORS OF ST LOUIS'S GERMANIA BANK I WOULDN'T EXPECT CONGRESS TO CHANGE ITS ATTITUDE ANYTIME SOON THE REASON IS CLEAR EVERY TIME A BANK OR SAVINGS AND LOAN EXECUTIVE SUCCUMBS IN A DAVID AND GOLIATH LEGAL BATTLE WITH THE US IT TAKES THE GLARE OFF CAPITOL HILL TO SHIFT THE BLAME FOR THE MESS IT CREATED CONGRESS HAS AUTHORIZED THE RTC TO BECOME THE NATION'S LARGEST EMPLOYER OF LAW FIRMS GIVING IT THE TAXPAYER'S WALLET TO CREATE SCAPEGOATS OUT OF PEOPLE LIKE GERMANIA'S DIRECTORS SO FAR THE MONETARY SETTLEMENTS THE RTC HAS COERCED IN THIS WITCH HUNT HAVE BEEN DWARFED BY ITS LEGAL BILLS BUT CONGRESS HAS BOUGHT ITSELF A LOT OF VALUABLE PR THE RTC ACCUSES ME ON A TOTAL OF FIVE COUNTS FOR MY SUPPOSED ROLE IN GERMANIA'S DEMISE NEGLIGENCE GROSS NEGLIGENCE BREACH OF CONTRACT BREACH OF FIDUCIARY DUTY AND UNDUE ENRICHMENT AND SUGGESTS A TOKEN SETTLEMENT TO GO AWAY THE AGENCY WHICH HAS ALREADY SPENT 2 MILLION ON GERMANIA MATTERS CAN THEN REPORT ANOTHER VICTORY TO CONGRESS HOWEVER EXPENSIVELY OBTAINED I WOULD GLADLY ACCEPT THE RTC'S OFFER IF IT WOULD APPLY THE SAME STANDARDS TO CONGRESS HERE'S ONE VERSION OF THE WAY IT WOULD COME OUT NEGLIGENCE THE THRIFT CRISIS BEGAN IN 1980 WHEN CONGRESS DESPITE RECORD HIGH INTEREST RATES AND MOUNTING LOSSES AT THE S&LS VOTED TO LIFT THE CEILING ON FEDERALLY INSURED DEPOSITS FROM 40000 TO 100000 AND PERMITTED THE THRIFT INDUSTRY TO GROW UNCHECKED GERMANIA ONCE A SLEEPY HOME MORTGAGE LENDER DOUBLED ITS DEPOSITS BETWEEN 1980 AND 1985 TO GROW ITS WAY OUT OF ITS PROBLEMS OTHER S&LS GREW EVEN FASTER GROSS NEGLIGENCE THE 1982 GARNST GERMAIN ACT PASSED WHEN THE THRIFT INDUSTRY LOOKED INSOLVENT GAVE S&LS WIDERANGING LENDING POWERS TO COMPLEMENT THEIR RAPID DEPOSIT GROWTH THOUGH ITS OFFICERS THEN HAD LITTLE COMMERCIAL BANKING EXPERIENCE GERMANIA BOOKED ABOUT 150 MILLION OF COMMERCIAL LOANS BETWEEN 1982 AND 1985 A LARGE NUMBER OF WHICH EVENTUALLY SOURED IT HAD TAKEN GERMANIA 92 YEARS TO DEVELOP THE SAME LEVEL OF HOME MORTGAGES BREACH OF CONTRACT IN 1985 GERMANIA CHANGED HANDS JOE MASON THEN ST LOUIS'S LARGEST HOMEBUILDER ACQUIRED CONTROLLING INTEREST IN THE BANK AND QUICKLY REVAMPED THE BOARD WITH PROMINENT ST LOUIS BUSINESS PEOPLE I WAS RECRUITED TO BE THE NEW CHIEF EXECUTIVE OUR FIRST JOB WAS TO RAISE CAPITAL AND RETURN THE BANK TO STABILITY AFTER ITS FORAY INTO COMMERCIAL LENDING WE STUDIED ALL SANCTIONED CAPITALRAISING OPTIONS AND WITH THE REGULATORS' APPROVAL AND ENCOURAGEMENT SOLD 16 MILLION OF CAPITAL NOTES TO OUR DEPOSITORS AND AN AFFILIATE OF THE LOCAL GAS UTILITY THE DIRECTORS LED BY MR MASON BOUGHT ABOUT 5 MILLION OF GERMANIA'S STOCK AND THE GOVERNMENT AWARDED US A CAPITAL CREDIT OF 6 MILLION FOR TAKING A BUSTED THRIFT OFF ITS HANDS AS A RESULT CAPITAL GREW FROM 19 MILLION WHEN WE TOOK OVER IN 1985 TO 42 MILLION IN 1989 A LEVEL ABOUT 20 MILLION MORE THAN REQUIRED AT THE BEGINNING OF 1989 WE OWNED A HEALTHY THRIFT BUT AT THAT TIME THE OVERALL INDUSTRY LOOKED ANYTHING BUT HEALTHY SO CONGRESS DID A REMARKABLE FLIPFLOP AND PASSED THE FINANCIAL INSTITUTIONS REFORM RECOVERY AND ENFORCEMENT ACT IN MID1989 FIRREA WAS AS PUNITIVE AS PRIOR LEGISLATION HAD BEEN LAX AND GAVE REGULATORS A NEW RULEBOOK FOR COMPUTING BANK CAPITAL UNFORTUNATELY FOR GERMANIA NOT MUCH OF THE CAPITAL WE RAISED COUNTED ANYMORE THE ACT REMOVED NOTES FROM THE CAPITAL CALCULATIONS AND TOOK AWAY THE CAPITAL CREDIT FOR ACQUIRING THE FAILED S&L GERMANIA WAS REDEFINED AS A FINANCIAL BASKETCASE BY THE END OF 1989 IN 1990 THE RTC SEIZED GERMANIA BECAUSE ITS CAPITAL UNDER CONGRESS'S NEW RULES WAS INADEQUATE GERMANIA'S DEPOSITORS AND THE GAS COMPANY LOST THE 16 MILLION THEY INVESTED IN THE BANK'S NOTES AND MY DIRECTORS LOST 5 MILLION BREACH OF FIDUCIARY DUTY AFTER THE RTC TOOK OVER GERMANIA ITS SPOKESMAN SAID THAT IT SOLD THE BANK'S ASSETS AS FAST AS WE COULD THE RTC PUTS THE LOSS FROM GERMANIA'S FAILURE AT 50 MILLION AS BOTH A FORMER GERMANIA SHAREHOLDER AND A TAXPAYER THAT IS EXTREMELY DISTURBING BECAUSE SHORTLY BEFORE THE RTC TAKEOVER A MAJOR INVESTMENT BANKING FIRM PUT THE WORSTCASE LOSS FROM LIQUIDATION AT A SMALL FRACTION OF THAT AMOUNT THE BANK ALSO RECEIVED A LETTER OF INTENT FROM A LARGER ST LOUIS BANK TO ACQUIRE IT POSSIBLY AT NO COST TO THE TAXPAYER WHO WERE THE BENEFICIARIES OF GERMANIA'S FAILURE WALL STREET AND SAVVY REAL ESTATE SPECULATORS THE LOSERS US TAXPAYERS AS INEPT OR INDIFFERENT RTC EMPLOYEES DUMPED ASSETS AT BARGAIN PRICES INTO THE WILLING HANDS OF EXPERT BUYERS UNJUST ENRICHMENT UNDER FIRREA IF THE RTC ALLEGES SOMEONE BENEFITED UNDULY FROM AN ASSOCIATION WITH AN S&L HIS ASSETS CAN BE FROZEN WHEN I WORKED AT GERMANIA MY SALARY WAS SET BY MY BOARD AT THE MIDPOINT RECEIVED BY OTHER CHIEF EXECUTIVES OF PUBLIC THRIFTS GERMANIA'S SIZE BUT THE RTC NOW THINKS IT WAS TOO HIGH AND WITHOUT A NOD TO DUE PROCESS ORDERED A FREEZE I HAD TO GIVE THAT AGENCY A DETAILED LISTING OF MY ASSETS RIGHT DOWN TO THE VALUE OF MY WATCH AND A RECORD OF EVERY DOLLAR MY WIFE AND I MADE AND SPENT SINCE 1985 THE RTC HIRED TWO PRIVATE INVESTIGATION FIRMS TO TRAIL ME AS A PART OF ITS ASSET SEARCH A FEDERAL JUDGE HAS SINCE DENIED THE RTC THE RIGHT TO CONTINUE ITS HARASSMENT WHY HASN'T THERE BEEN AN INVENTORY OF THE WATCHES OF THE KEATING FIVE WHY ISN'T THERE A FREEZE ON THE ASSETS OF THE CONGRESSMEN WHO PROSPERED THROUGH THEIR S&L CONNECTIONS AND WILL THERE EVER BE THE SLIGHTEST ADMISSION FROM MEMBERS WHO STOCKED THEIR CAMPAIGN COFFERS WITH THRIFT INDUSTRY PAC MONEY THAT CONGRESS HAD ANYTHING TO DO WITH THE S&L DISASTER PRESIDENT CLINTON WILL NEED TO USE ALL OF HIS CONSIDERABLE POWERS OF PERSUASION TO GET CONGRESS FOCUSED AWAY FROM ITSELF AND TOWARD PROMOTING ECONOMIC GROWTH THROUGH SENSIBLE NONVINDICTIVE BANK REGULATION MR MORRIS IS PRESIDENT OF FORTUNE GROUP A ST LOUIS FINANCIAL CONSULTING FIRM 9303120030 930312 INTERNATIONAL WORLD ECONOMY DUMPING CASE AGAINST SEMICONDUCTORS FROM SOUTH KOREA HOLDS LIST OF LESSONS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE KOREAN DRAMS SAGA CONTINUES AND THE LIST OF LESSONS IT CAN TEACH GROWS LONGER THE CASE INVOLVES AN EFFORT BY SOME TO GAIN ADVANTAGE BY INFLICTING PAIN ON OTHERS AND IT'S ALL QUITE LEGAL UNDER US LAWS GOVERNING THE DUMPING OF GOODS ON THE AMERICAN MARKET BUT THE FIGHT OVER WHAT PRICES THREE SOUTH KOREAN MANUFACTURERS SHOULD CHARGE FOR SEMICONDUCTORS CALLED DYNAMIC RANDOM ACCESS MEMORIES OR DRAMS HAS BROAD IMPLICATIONS FOR US FOREIGN ECONOMIC RELATIONS AND IT CONTAINS A LESSON FOR OTHER NATIONS ESPECIALLY THOSE EAGER TO ENTER THE US MARKET SOUTH KOREAN SEMICONDUCTOR MAKERS ARE BEING SINGLED OUT PARTLY BECAUSE OF THEIR SUCCESS WITH THEIR GOVERNMENT'S HELP KOREAN SUPPLIERS SURGED INTO SECOND PLACE IN THE HUGE US DRAM MARKET BEHIND JAPAN BUT WELL AHEAD OF THE AMERICANS THEMSELVES AN IDAHO COMPANY MICRON TECHNOLOGY INC FILED A DUMPING CASE CONTENDING THE KOREANS CHARGED UNFAIR LOW PRICES AS DEFINED BY AMERICAN TRADE LAW THE DEPARTMENT OF COMMERCE LEVIED INTERIM DUTIES OF UP TO 87 TO FORCE UP KOREAN PRICES AND THESE LEVIES OR SOMETHING SIMILAR ARE EXPECTED TO BECOME PERMANENT ON MONDAY SUBJECT TO FINAL REVIEW BY ANOTHER GOVERNMENT AGENCY IF THEY STICK MICRON WILL BE A BIG WINNER DRAM PRICES HAVE RISEN ABOUT 20 SINCE THE CASE WAS FILED LAST YEAR MICRON IS EXPANDING OUTPUT 20 BUT US SUPPLIERS CAN'T MEET ALL THE DEMAND FOR DRAMS SO JAPANESE EXPORTERS WILL GAIN THE MOST THOSE HURT BY THE LEVIES INCLUDE US DRAM USERS AND THEIR CUSTOMERS THAT IS WHY MICRON HAS FEW ALLIES INSTEAD MANY DRAM USERS FROM GIANT APPLE COMPUTER INC TO DESKTOP SALES INC ASKED COMMERCE SECRETARY RON BROWN TO CONSIDER A KOREAN COMPROMISE OFFER AND SUSPEND THE EXTRA DUTIES ALSO WEIGHING IN WAS A COMPUTER INDUSTRY POLICY GROUP HEADED BY THE CHIEF EXECUTIVES OF AMONG OTHERS UNISYS CORP AMERICAN TELEPHONE & TELEGRAPH CO DIGITAL EQUIPMENT CORP AND INTERNATIONAL BUSINESS MACHINES CORP PLUS PRODUCTION EQUIPMENT MAKERS THAT SELL 1 BILLION WORTH YEARLY TO KOREAN DRAM EXPORTERS BUT MR BROWN NEW TO HIS JOB AND NO EXPERT IN THIS FIELD LET COMMERCE STAFFERS REJECT THE OFFER IT DIDN'T MEET MICRON'S OBJECTIONS SAYS ONE MANY TRADE LAWYERS EXECUTIVES AND ECONOMISTS WANT TRADE LAWS REVISED SO BROADER ECONOMIC INTERESTS ARE ALSO CONSIDERED WHEN PROTECTIONISM IS SOUGHT AND THEY WANT THEM REFINED SO ONLY ALLEGED MALEFACTORS NOT OTHER AMERICAN COMPANIES AND CONSUMERS ARE TARGETED SUCH PRECISION ISN'T POSSIBLE NOW WHILE WE RECOGNIZE THAT THE DUTIES MAY ADVERSELY AFFECT US CONSUMERS OF DRAMS DAVID BINDER A COMMERCE OFFICIAL INVOLVED IN THE MICRON CASE TOLD ONE COMPLAINING COMPANY THE LAW DOES NOT ALLOW CONSIDERATION OF THE IMPACT OF DUTIES ON CONSUMERS SOME HOPE THIS GLARING OMISSION WILL BE REDRESSED AT THE WHITE HOUSE'S NEW NATIONAL ECONOMIC COUNCIL CREATED TO CONSIDER SUCH MATTERS IN A NATIONAL CONTEXT ONE TEST WILL BE WHAT IS DONE WITH A FAREWELL PRESENT FROM CARLA HILLS CHIEF TRADE NEGOTIATOR FOR PRESIDENT BUSH WHO ORDERED A COMPREHENSIVE STUDY OF HOW DUMPING LAWS REALLY AFFECT THE NATIONAL ECONOMY ITS FINDINGS COULD BE THE BASIS FOR NEW TRADE LEGISLATION MICKEY KANTOR WHO SUCCEEDED MRS HILLS HASN'T DECIDED WHETHER TO CONTINUE THE STUDY STARTLED BY THE COMMERCE DECISION SEOUL TRIED TO SAVE THE SEMICONDUCTER BUSINESS IF COMMERCE WOULD SUSPEND THE EXTRA DUTIES IT PROMISED THAT ANY DRAM DUMPING WOULD STOP IMPLYING PRICES WOULD RISE TO PLEASE MICRON IT ALSO OFFERED TO ABOLISH ITS 10 TARIFF ON SEMICONDUCTOR IMPORTS GIVE EXTRA PROTECTION TO PATENTS AND OTHER INTELLECTUAL PROPERTY AND PROMOTE COOPERATIVE VENTURES BETWEEN US AND KOREAN SEMICONDUCTOR COMPANIES NO DICE SAID COMMERCE SEOUL HAD STONEWALLED ON THESE MATTERS FOR YEARS AND US OFFICIALS SEEMED UNIMPRESSED BY ITS DEATHBED CONVERSION THEY SHOULD DO THESE THINGS ANYWAY SAYS ONE THIS SUGGESTS OTHER NATIONS SHOULD THINK TWICE IF SOME EXPORT SUDDENLY GAINS AN UNUSUAL US MARKET SHARE UNDER CURRENT US LAW RETALIATION IS SWIFT AND SURE AND CHANCES OF GETTING SYMPATHY ARE SLIM IF THE FOREIGN GOVERNMENT IS STALLING IN OTHER TRADE TALKS 9303120029 930312 ENTERPRISE STARTUP FAMILY AIRLINES APPEARS TO BE GROUNDED DELAYS AND FRUSTRATION CLOUD THE BRAINCHILD OF CALIFORNIA ENTREPRENEUR BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL FAMILY AIRLINES A LAS VEGAS STARTUP THAT PROMISES CHEAP CROSSCOUNTRY FARES APPEARS STALLED AT TAKEOFF THE BRAINCHILD OF A LOS ANGELES ENTREPRENEUR WITH NO AIRLINE EXPERIENCE FAMILY HAS MISSED SEVERAL STARTUP DATES BECAUSE IT LACKED PLANES AND A FEDERALLY REQUIRED PLAN TO MAINTAIN THEM AMONG OTHER THINGS EVEN AS THE AIRLINE PREPARED FOR AN OPEN HOUSE AT ITS NEW LAS VEGAS HEADQUARTERS YESTERDAY A SPOKESMAN FOR THE FEDERAL AVIATION ADMINISTRATION SAID THE AGENCY HAD TERMINATED THE CARRIER'S APPLICATION TO FLY ALTHOUGH HE SAID THE AIRLINE COULD REAPPLY AT A FUTURE DATE HE SAID IT HAD FAILED TO PROVIDE ADEQUATE INFORMATION ON ITS AIRCRAFT AND MAINTENANCE PROGRAM ALL THEIR APPLICATION MATERIALS HAVE BEEN BOXED UP AND THEY'RE INVITED TO PICK THEM UP SAID THE FAA SPOKESMAN LATER AFTER LEARNING THAT FAMILY NOW SAYS IT HAS AN AIRPLANE AND A MAINTENANCE AGREEMENT TO PRESENT TO THE FAA TODAY THE SPOKESMAN SAID THE AGENCY MIGHT REEVALUATE WE'LL SEE WHAT HAPPENS HE SAID MEANWHILE AN OFFICIAL AT THE DEPARTMENT OF TRANSPORTATION WHICH REVIEWS AIRLINES' FINANCIAL FITNESS SAID THE DEPARTMENT IS TAKING A SECOND LOOK AT FAMILY'S APPLICATION AFTER ANONYMOUSLY RECEIVING ALLEGATIONS OF LAWSUITS AGAINST THE AIRLINE'S FOUNDER M BARRY MICHAELS SOME FORMER EMPLOYEES MOREOVER EXPLAINED IN INTERVIEWS THAT THEY HAD RESIGNED IN FRUSTRATION OVER WHAT THEY VIEWED AS DELAYING TACTICS BY MR MICHAELS REGARDING BOTH THE PROGRESS OF THE AIRLINE AND THEIR OWN PROSPECTS FOR GETTING PAID THERE WAS AN ENDLESS STREAM OF EXCUSES DELAYS AND CONFUSION AND NO COMMUNICATION WITHIN THE COMPANY SAID ANDREW BRODA THE FORMER VICE PRESIDENT OF OPERATIONS WHO SAID HE RESIGNED JAN 9 MR BRODA ALLEGED THAT AT ONE POINT HE WAS TOLD THAT FAMILY HAD ACQUIRED A 747 AIRPLANE FROM NORTHWEST AIRLINES ONLY TO SEE THAT SPECIFIC PLANE'S TAIL NUMBER ON A TELEVISION REPORT FROM SOMALIA WHERE THE PLANE WAS DELIVERING US TROOPS DAN SHEEHY WHO HELPED PUBLICIZE FAMILY AS A SPOKESMAN FOR THE AIRLINE SAID HE QUIT FEB 11 AFTER NOTING SIMILAR UNEXPLAINED DELAYS AND GOING MONTHS WITHOUT A SINGLE PAYCHECK FAMILY IS GOING TO TELL YOU WE'RE DISGRUNTLED EMPLOYEES AND FRANKLY WE ARE DISGRUNTLED HE SAID AMONG THE STARTUPS' INVESTORS ARE ABOUT 80 FORMER PILOTS INCLUDING MANY FROM THE NOW DEFUNCT PAN AMERICAN WORLD AIRWAYS WHO PUT UP 30000 TO 50000 EACH TO BUY STOCK AND A CHANCE FOR A JOB AT FAMILY I'VE GOT A REAL GOOD FEAR FOR MY 50000 SAID ONE PILOT WHO SAID HE BORROWED THE MONEY TO INVEST IN FAMILY WHILE ACKNOWLEDGING THE COMPANY HAS MISSED SEVERAL WISH DATES TO START FLYING A FAMILY AIRLINES SPOKESMAN SAID THE AIRLINE IS ON COURSE I'M ABSOLUTELY CONVINCED IT WILL TAKE OFF SAID ALAN LOFLIN VICE PRESIDENT FOR CORPORATE COMMUNICATIONS WHO IS ALSO A FORMER PAN AM EMPLOYEE HE SAID MOST EMPLOYEES AREN'T BEING PAID UNTIL THE REVENUE STREAM BEGINS TO FLOW A PRACTICE HE SAID IS COMMON WITH STARTUP AIRLINES MR LOFLIN SAID MR MICHAELS WAS UNAVAILABLE FOR COMMENT BECAUSE HE WAS OUT OF THE BUILDING FOR MEETINGS INCLUDING ONE WITH THE LOCAL FAA OFFICE HE SAID THE MAINTENANCE PROGRAM WOULD BE PRESENTED TO THE FAA BY TODAY AND THAT THE AIRLINE NOW HAS THE FIRST OF ITS USED BOEING 747 AIRCRAFT READY TO BE PAINTED WE ARE MOVING FORWARD WITH ALL ASPECTS OF WHAT WE'RE DOING INCLUDING THE HIRING AND TRAINING OF FLIGHT CREWS THE SPOKESMAN ADDED A SPOKESMAN FOR TRANS WORLD AIRLINES CONFIRMED LATE YESTERDAY THAT TWA IS DISCUSSING A MAINTENANCE CONTRACT WITH FAMILY BUT ADDED IT HAD NOT YET BEEN SIGNED AT FAMILY MR LOFLIN EXPRESSED FRUSTRATION WITH REPORTS THIS WEEK IN THE LAS VEGAS MEDIA ABOUT SOME OF FAMILY'S PROBLEMS HE SAID HE'S ALSO HEARD ALLEGATIONS OF DOZENS OF LAWSUITS AGAINST MR MICHAELS IN LOS ANGELES MR LOFLIN SAID HE DISCUSSED THESE ALLEGATIONS WITH MR MICHAELS AND THAT THE FOUNDER ASSURED HIM THERE WERE NO PENDING LAWSUITS AND NO OUTSTANDING JUDGMENTS MR LOFLIN SAID THAT THE TRANSPORTATION DEPARTMENT HAD ASKED ABOUT THESE AND THAT HE WAS CONFIDENT ITS QUESTIONS COULD BE ANSWERED SATISFACTORILY MR LOFLIN NOTED THAT IT'S NOT UNUSUAL FOR AN ENTREPRENEUR TO BE SUED MEANWHILE A BEVERLY HILLS LAWYER SAID HIS CLIENTS ARE WAITING FOR MR MICHAELS TO PAY DAMAGES TO SETTLE A SUIT OVER ELE KATEL INC AN ENCINO CALIF HAIR AND SKIN PRODUCTS BUSINESS THAT MR MICHAELS FOUNDED AND OPERATED BEFORE STARTING THE AIRLINE THE LAWYER HOWARD ZELENER SAID HIS CLIENTS LOST MORE THAN 85000 AFTER ANSWERING AN AD FOR DISTRIBUTORS MR ZELENER SAID THAT HIS CLIENTS MARCUS AND LINDA HARREL RECEIVED ONLY A SMALL NUMBER OF THE PROMISED PRODUCTS AND THAT MR MICHAELS NEVER DELIVERED MARKETING OR PROMOTIONAL SUPPORT HE HAD AGREED TO SEND THE HARRELS SUED MR MICHAELS HIS WIFE HOLLY AND OTHERS IN LOS ANGELES SUPERIOR COURT IN JULY MR ZELENER SAID THAT UNDER A STIPULATED JUDGMENT TO SETTLE THE SUIT MR MICHAELS AGREED TO PAY A SUM OF MORE THAN 85000 THEY THE HARRELS THOUGHT THEY WERE DEALT WITH UNFAIRLY AND DISHONESTLY SAID MR ZELENER WHO ADDED THAT THEY HAD TO SELL THEIR HOME BECAUSE OF THE FAILED INVESTMENT FORMER FAMILY AIRLINES EMPLOYEES MADE SIMILAR COMPLAINTS EVERYTHING SEEMED TO BE DELAYED ALL THE TIME SAID BRYAN JOHNSTON WHO SAID HE QUIT FAMILY IN FRUSTRATION TWO WEEKS AGO LIKE SOME OTHER EXEMPLOYEES HE ALSO QUESTIONED WHETHER FAMILY WILL GET OFF THE GROUND NEARLY EVERYONE SEEMS TO AGREE THAT MR MICHAELS A FORMER CHIROPRACTOR WHO SAID HE FOUNDED MANY BUSINESSES HAS A GOOD IDEA IN FAMILY AIRLINES THE CARRIER USING BOEING 747S AND EXAIRLINE EMPLOYEES THAT ARE BOTH IN ABUNDANT SUPPLY WOULD FLY COAST TO COAST FOR 249 ROUNDTRIP UNLIKE OTHER AIRLINES HOWEVER THE STARTUP WOULDN'T HAVE COMPLEX RESTRICTIONS ON WHEN CUSTOMERS WOULD HAVE TO FLY THE FLEET WHICH WOULD START WITH AS MANY AS FIVE PLANES AND GROW TO 30 BY 1997 WOULD ATTRACT BUDGETCONSCIOUS FAMILIES ON HEAVILY TRAVELED ROUTES SUCH AS BETWEEN LOS ANGELES AND NEW YORK AND LAS VEGAS AND NEW YORK CUSTOMERS WOULD BE TREATED TO FAMILYORIENTED AMENITIES SUCH AS A GEOGRAPHY PROGRAM FOR YOUNGSTERS THE ENTIRE CONCEPT IS BARRY MICHAELS SAID MR LOFLIN THE VICE PRESIDENT OF CORPORATE COMMUNICATIONS HE'S ESSENTIALLY A NICHE MARKETER AND ENTREPRENEUR 9303120028 930312 PORT AUTHORITY SAYS OPERATING REVENUE INCREASED 41 IN 1992 NEW YORK THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY REPORTED 1992 OPERATING REVENUE ROSE 41 TO 19 BILLION WHILE OPERATING EXPENSES ROSE LESS THAN 1 TO 13 BILLION FOR THE YEAR THE BISTATE AGENCY OWNS AND OPERATES THREE METROPOLITAN AIRPORTS HUDSON RIVER TUNNELS AND BRIDGES A NEW YORK CITY BUS TERMINAL AND VARIOUS OTHER FACILITIES INCLUDING THE WORLD TRADE CENTER RICHARD C LEONE CHAIRMAN OF THE PORT AUTHORITY SAID THE RECENT EXPLOSION AT THE WORLD TRADE CENTER IS EXPECTED TO HAVE NO IMPACT ON THE FINANCIAL CAPACITY OF THE PORT AUTHORITY MR LEONE CITED ABOUT 1 BILLION IN COMBINED INSURANCE COVERAGE AT THE TRADE CENTER AND A SUCCESSFUL 100 MILLION BOND OFFERING THAT TOOK PLACE AFTER THE BOMBING THE AGENCY SAID CAPITAL RESERVES FOR THE YEAR DECLINED 46 MILLION TO 782 MILLION THE PORT AUTHORITY ATTRIBUTED THE DECLINE TO ITS CAPITAL PROGRAM IN 1992 THE AGENCY MADE A 700 MILLION CAPITAL INVESTMENT IN ITS FACILITIES MR LEONE ADDED THAT THE PORT AUTHORITY'S CAPITAL EXPENDITURE PLANS WILL CONTINUE APACE WE HAVE SPENT MORE THAN 4 BILLION ON CAPITAL IMPROVEMENTS SINCE 1987 WE ANTICIPATE SPENDING ANOTHER 4 BILLION IN THE NEXT FIVE YEARS AT ITS THREE AIRPORTS LAGUARDIA JFK AND NEWARK NET INCOME INCREASED 14 MILLION TO 127 MILLION AS REVENUE FOR CARGO AND PASSENGER TERMINAL RENTALS INCREASED THE PORT AUTHORITY'S INTERSTATE TRANSPORTATION NETWORK POSTED A LOSS OF 35 MILLION AS THE PORT AUTHORITY BUS TERMINAL AND PATH SUBWAY SYSTEM REPORTED LOSSES OF 231 MILLION THE WORLD TRADE CENTER COMPLEX REPORTED NET OF 48 MILLION DOWN 2 MILLION FROM 1991 OCCUPANCY LEVELS AT THE CENTER REMAINED AT ABOUT 88 THE SAME AS AT YEAREND 1991 PORT AUTHORITY OFFICIALS SAID THEY HAVE RECEIVED NO REQUESTS OR INDICATIONS THAT TENANTS ARE PLANNING TO LEAVE THE TRADE CENTER DUE TO THE RECENT BOMBING 9303120027 930312 TRAVEL SOME CLEVER FLIERS BEAT SKYHIGH FARES BY KNOWING WHERE TO LOOK ON THE GROUND BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL WHEN US AIRLINES RAISED FARES A HALF DOZEN TIMES AT THE END OF LAST YEAR SOME TRAVELERS QUIT FLYING BUT NOT NEVILLE GLADDING THE SEATTLE SALES REPRESENTATIVE HAS TAKEN THREE BUSINESS TRIPS TO LOS ANGELES THIS YEAR ON NORTHWEST AIRLINES EVEN THOUGH HE BELIEVES THE LOWEST PUBLISHED ROUNDTRIP FARE ABOUT 800 IS OUTRAGEOUS FORTUNATELY HE PAID ONLY 285 I KNOW OUR COMPTROLLER IS HAPPY MR GLADDING SAYS MR GLADDING'S CHEAP FARES CAME THROUGH HIS TRAVEL AGENT WHO GOT THEM THROUGH A WHOLESALE TICKET DISTRIBUTOR AIRLINES QUIETLY USE THESE DISTRIBUTORS KNOWN AS CONSOLIDATORS TO UNLOAD SEATS THAT WOULD OTHERWISE GO EMPTY OPPORTUNISTIC FLIERS HAVE SEVERAL WAYS TO MINIMIZE THE COST OF FLYING THESE DAYS IN ADDITION TO BUYING FROM TRAVEL AGENTS WHO WORK WITH CONSOLIDATORS THEY CAN PURCHASE TICKETS THROUGH AGENTS KNOWN AS REBATERS SUCH AS TRAVEL AVENUE IN CHICAGO WHICH PROVIDES A 7 CASH REBATE MINUS A 10 SERVICE FEE ON EACH TICKET SOLD ANOTHER POSSIBLE SOURCE IS NEW FEEBASED TRAVEL CLUBS LIKE PACE WAREHOUSE TRAVEL CLUB THAT OFFER SIMILAR REBATES THE PRICE INCENTIVES REPRESENT THE AIRLINES' EFFORTS TO RECONCILE CONTRADICTORY PROBLEMS CARRIERS SUFFER FROM BOTH EXCESS CAPACITY AND IN THEIR VIEW INSUFFICIENT REVENUE FROM LOW FARES SO THEY ARE RELEASING A MODEST NUMBER OF STEEPLY DISCOUNTED TICKETS TO FILL THE EXTRA SEATS BUT THEY'RE USING SUBTERRANEAN DISTRIBUTION CHANNELS TO CONCEAL THE TICKETS' AVAILABILITY FROM MOST CUSTOMERS THAT INCLUDES SWEETENING COMMISSIONS TO SOME AGENTS WHO PASS THE EXTRA DOLLARS ALONG TO CUSTOMERS IN THE FORM OF REBATES OR DISCOUNTS CHEAP FARES ARE SOMETHING YOU CAN FIND BUT YOU HAVE TO BE CLEVER SAYS BARBARA ANDERSON OF TRAVEL AGENTS INTERNATIONAL IN EDMONDS WASH WHICH SOLD MR GLADDING HIS SPECIAL TICKETS WHEN AIRLINES SELL TICKETS THROUGH CONSOLIDATORS THEY AREN'T EXACTLY GIVING AWAY THEIR PRODUCT THE INDUSTRY PUTS HEAVY RESTRICTIONS AND PENALTIES ON THOSE FARES CUSTOMERS TYPICALLY CAN'T USE THE TICKETS FOR MILEAGE CREDITS ON THEIR FREQUENTFLIER ACCOUNTS THEY ALSO CAN'T EXCHANGE THE TICKETS OR GET UPGRADES OR REFUNDS EVEN SPECIAL MEALS ARE RESTRICTED MR GLADDING HAD TO PAY FOR HIS NORTHWEST TICKET WITH A PERSONAL CHECK AS MANY CONSOLIDATORS TO KEEP COSTS DOWN DON'T ACCEPT CREDIT CARDS CHEAP FARES CAN ALSO BE RISKY CONSOLIDATORS ARE NOTORIOUS FOR PROMISING MORE THAN THEY DELIVER AND THEY GENERATE SIGNIFICANT COMPLAINTS AT PLACES LIKE THE BETTER BUSINESS BUREAU OF METROPOLITAN NEW YORK CONSUMERS ARE ADVISED TO BUY SUCH TICKETS THROUGH TRAVEL AGENTS WHO KNOW WHICH CONSOLIDATORS ARE RELIABLE IN ADDITION AGENTS KNOW WHETHER A CONSOLIDATOR TICKET IS ACTUALLY CHEAPER THAN THE PUBLISHED FARE RECENT FARE WARS INVOLVING ROUTES TO EUROPE HAVE UNDERCUT THE PRICES OF MANY CONSOLIDATOR TICKETS BUT BUYING TICKETS FROM REBATERS DOESN'T GUARANTEE A BARGAIN EITHER FOR ONE THING THE TICKET ITSELF MAY NOT BE THE LEAST EXPENSIVE AVAILABLE THAT RISK IS PARTICULARLY HIGH IF A FLIER IS TAKING AN AIRLINE THAT COMPETES DIRECTLY WITH NOFRILLS SOUTHWEST AIRLINES WHICH UNDERCUTS COMPETITORS ON FARES BUT TYPICALLY DOESN'T OFFER HEFTY COMMISSIONS TO AGENTS AGENTS ARE GOING TO PUSH CARRIERS THAT OFFER THE HIGHEST LEVEL OF COMMISSION BUT AS LONG AS THE CONSUMER SHOPS AROUND HE SHOULDN'T HAVE TO WORRY SAYS HAROLD SELIGMAN PRESIDENT OF MANAGEMENT ALTERNATIVES INC A TRAVELMANAGEMENT CONCERN IN STAMFORD CONN TRAVEL AGENTS TYPICALLY RECEIVE A 10 COMMISSION ON EACH DOMESTIC TICKET AND UP TO 20 ON INTERNATIONAL BUT AIRLINES INCREASE THE COMMISSIONS TO REBATERS THAT SELL IN HEAVY VOLUME FOREIGN AIRLINES HAVE FUNNELED EXTRA TICKETS THROUGH THIS GRAY MARKET FOR YEARS AND US CARRIERS FLYING INTERNATIONALLY HAVE FOLLOWED SUIT TO COMPETE BUT AVAILABILITY OF THESE TICKETS SHRANK AFTER A MAJOR SUPPLIER PAN AMERICAN WORLD AIRWAYS WENT OUT OF BUSINESS TWO YEARS AGO AND ANOTHER TRANS WORLD AIRLINES SOLD SOME EUROPEAN ROUTES IN RECENT MONTHS MAJOR AIRLINES THAT USED TO AVOID CONSOLIDATORS INCLUDING AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIRLINES AND DELTA AIR LINES HAVE MODIFIED THEIR POSITIONS ACCORDING TO CONSOLIDATORS AND TRAVEL AGENTS ALL THREE AIRLINES HAVE VASTLY EXPANDED THEIR INTERNATIONAL NETWORKS IN RECENT YEARS THEY'VE COME TO UNDERSTAND THAT THIS IS THE WAY BUSINESS IS DONE ON THE INTERNATIONAL SIDE SAYS GEORGE CHEN PRESIDENT OF CL THOMSON EXPRESS INTERNATIONAL INC OF SAN FRANCISCO ONE OF THE NATION'S LARGEST CONSOLIDATORS IT'S EITHER PLAY BALL OR GET OUT OF THE GAME WHILE INDUSTRY STATISTICS DON'T EXIST ON CONSOLIDATORS' SALES TRAVEL AGENTS WHO BUY FROM THEM SAY VOLUME IS WAY UP TERRI BUSCEMI PRESIDENT OF UNIGLOBE PROFESSIONAL TRAVEL INC IN CHICAGO SAYS HER AGENCY GETS 60 OF ITS INTERNATIONAL TICKETS FROM CONSOLIDATORS COMPARED WITH 30 FIVE YEARS AGO DELTA SAYS IT USES CONSOLIDATORS ON A VERY LIMITED BASIS PRIMARILY ON ROUTES TO ASIA AMERICAN SAYS IT SELLS LESS THAN 5 OF ITS INTERNATIONAL TICKETS THROUGH CONSOLIDATORS OUR PREFERENCE IS TO WORK THROUGH THE TRAVELAGENCY COMMUNITY SAYS DANIEL WESTBROOK AMERICAN'S MANAGING DIRECTOR OF INTERNATIONAL MARKET DEVELOPMENT FOR THE MOST PART CONSOLIDATORS ARE USED TO REACH ETHNIC GROUPS OR SOME OTHER MARKET SEGMENT NOT SERVED BY TRAVEL AGENTS ANOTHER DEVELOPMENT IS THE INCREASED USE OF CONSOLIDATORS TO SELL DOMESTIC TICKETS PARTICULARLY ON EXPENSIVE LONGHAUL FLIGHTS WHERE OPPORTUNITIES FOR SAVINGS ARE GREATEST CONSOLIDATORS AND TRAVEL AGENTS SAY THAT NORTHWEST TWA AND CONTINENTAL AIRLINES ARE ALL MAKING THESE SPECIAL FARES AVAILABLE IN EFFECT SELLING FULLCOACH FARES AT SUPERSAVER PRICES BUT THE AIRLINES WAIVE THE ADVANCEPURCHASE AND SATURDAYNIGHTSTAY REQUIREMENTS THIS MORNING A FELLOW WANTED TO FLY TO THE WEST COAST ON CONTINENTAL AND THE FARE WAS 1305 SAYS A NEW JERSEY TRAVEL AGENT A CONSOLIDATOR QUOTED ME A FARE FOR 425 I'LL SELL IT FOR 625 AND SAVE THE CUSTOMER SEVERAL HUNDRED DOLLARS AMONG THE RESTRICTIONS ON THE TICKET WERE A TWODAY MINIMUM STAY AND NO REFUNDS NOT COINCIDENTALLY TWA AND CONTINENTAL ARE OPERATING UNDER CHAPTER 11 BANKRUPTCY PROTECTION AND NORTHWEST IS ALSO STRUGGLING ALL THREE NEED PASSENGERS TWA SAYS IT IS CUTTING BACK ITS TICKET SALES TO CONSOLIDATORS AND FOCUSING ON IMPROVED SERVICE INSTEAD CONTINENTAL A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC SAYS IT WORKS WITH CONSOLIDATORS PRIMARILY ON INTERNATIONAL FLIGHTS AND SELLS VERY FEW THROUGH THEM ON DOMESTIC ROUTES A SPOKESMAN FOR NORTHWEST A UNIT OF WINGS HOLDINGS INC SAID EXECUTIVES WEREN'T AVAILABLE TO COMMENT AIRLINES ALSO OFFER DISCOUNT TICKETS TO TRAVEL CLUBS WITH LARGE MEMBERSHIPS MEMBERS OF COMPUCARD A UNIT OF CUC INTERNATIONAL INC PAY 49 A YEAR AND RECEIVE A 5 REBATE ON PLANE TICKETS BECAUSE WE HAVE THE CLOUT OF THREE MILLION MEMBERS WE CAN NEGOTIATE BETTER DEALS SAYS CHRIS MCLEOD PRESIDENT OF COMPUCARD WHICH MARKETS ITS SERVICE TO CREDITCARD HOLDERS MEMBERS ALSO RECEIVE COUPON BOOKS AND DISCOUNT TRAVEL PACKAGES NOFRILLS TRAVEL CLUBS MAY ALSO KEEP DOWN COSTS AT THE EXPENSE OF SLUGGISH SERVICE PACE TRAVELERS CLUB A UNIT OF KMART CORP'S PACE MEMBERSHIP WAREHOUSE INC CHARGES MEMBERS 995 A YEAR IN EXCHANGE FOR REBATES OF 2 TO 5 BUT PHONING THEM CAN BE DIFFICULT PACE SPOKESMAN DOUG HOCK SAYS WE ARE AWARE THERE ARE SOME PROBLEMS GETTING THROUGH AND WE HAVE TO HAVE A QUICKER RESPONSE TIME MOST TRAVEL EXPERTS ADVISE FLIERS TO AVOID ADS THAT PROMISE GREAT DEALS THEY COULD BE FRAUDS WITH THE AIRLINES LOSING MONEY AND OFTEN FLYING WITH HALFEMPTY PLANES CANNY TRAVEL AGENTS SHOULD BE ABLE TO FIND GOOD DEALS THEY WOULD RATHER NOT FIND THE DISCOUNTS BECAUSE THEY MAKE LESS COMMISSION SAYS DONALD GARVETT OF SH&E IN NEW YORK A TRAVELINDUSTRY CONSULTANT BUT I WOULD TURN MY TRAVEL AGENT UPSIDE DOWN A FEW TIMES BECAUSE THE DEALS ARE THERE 9303120026 930312 WHO'S NEWS AVATAR HOLDINGS INC AVATAR HOLDINGS INC CORAL GABLES FLA LINO MANCEBO 50 YEARS OLD WAS NAMED TO THE NEWLYCREATED POST OF VICE PRESIDENTHOUSING OPERATIONS OF AVATAR PROPERTIES INC THE REAL ESTATE CONSTRUCTION AND MANAGEMENT UNIT OF THIS HOLDING COMPANY MR MANCEBO HAD BEEN A SELFEMPLOYED ASSETMANAGEMENT CONSULTANT AVATAR ALSO HAS A UTILITY OPERATIONS UNIT 9303120025 930312 WHO'S NEWS TYSON FOODS INC TYSON FOODS INC SPRINGDALE ARK GREG W LEE 45 YEARS OLD FORMER DIVISION VICE PRESIDENT OF FOOD SERVICE SALES AND MARKETING WAS NAMED SENIOR VICE PRESIDENT OF SALES AND MARKETING AT THE POULTRY CONCERN SUCCEEDING BOB WOMACK WHO WAS RECENTLY NAMED PRESIDENT OF THE SEAFOOD GROUP GERARD A DOWD 41 FORMER VICE PRESIDENT OF FOOD SERVICE SALES SUCCEEDS MR LEE IN HIS PREVIOUS POST JOHN S LEA 40 FORMER VICE PRESIDENT OF RETAIL SALES SUCCEEDS MR DOWD IN HIS PREVIOUS POST MARK G WILLES 41 FORMER VICE PRESIDENT OF SALES FOR QUICKTOFIX FOOD PRODUCTS A SUBSIDIARY OF HOLLY FARMS SUCCEEDS MR LEA 9303120024 930312 ECONOMY RETAIL SALES ROSE 03 IN FEBRUARY AS PICKUP SLOWED BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RETAIL SALES ROSE A MODEST 03 IN FEBRUARY THE COMMERCE DEPARTMENT SAID ANOTHER SIGN THAT CONSUMER SPENDING HAS SLOWED FROM ITS QUICKENED PACE AT THE END OF LAST YEAR PEOPLE ARE STILL AFRAID TO MAKE CERTAIN COMMITMENTS SAID SANDRA SHABER RETAIL ANALYST FOR WEFA GROUP WE'VE GOT A CONTINUING RECOVERY BUT THE INDICATION IS THAT IT IS STILL VERY SLOW INDEED RECENT SURVEYS OF CONSUMER CONFIDENCE SHOW THAT IT HAS LEVELED OFF SINCE THE BIG GAINS MADE IN THE LAST TWO MONTHS OF THE YEAR SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE ROSE 25000 TO 382000 IN THE WEEK ENDED FEB 27 THAT'S THE HIGHEST LEVEL IN FOUR MONTHS THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH ANALYSTS BELIEVE IS A BETTER GAUGE OF LABOR MARKET HEALTH ALSO ROSE DURING THE WEEK IT TOTALED 343250 UP FROM 334250 A WEEK EARLIER A BIG REASON FOR THE SMALL RISE IN RETAIL SALES LAST MONTH WAS A TERRIBLE SHOWING AT AUTO DEALERSHIPS CAR DEALERS' SALES DROPPED 25 AFTER EDGING UP 04 IN JANUARY EXCLUDING AUTOS RETAIL SALES WERE UP 09 WITH STRENGTH CONCENTRATED IN BUILDING MATERIALS GASOLINE AND GROCERY STORES SALES AT APPAREL STORES DECLINED AND THOSE AT GENERALMERCHANDISE STORES WERE WEAK MS SHABER SAID BUILDING MATERIALS ARE LIKELY TO BE A BIG FOCUS OF CONSUMER SPENDING FOR SEVERAL MONTHS BECAUSE OF THE IMPROVING HOUSING MARKET ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9303120023 930312 FINANCING BUSINESS BALLY MANUFACTURING CORP BALLY MANUFACTURING CORP CHICAGO SAID IT COMPLETED THE PRIVATE PLACEMENT OF 275 MILLION OF 10 5/8 FIRST MORTGAGE NOTES DUE 2003 FOR THE COMPANY'S GRAND CASINO HOTEL IN ATLANTIC CITY NJ BY BALLY'S GNF CORP UNIT PROCEEDS ARE BEING USED TO RETIRE THE CASINOHOTEL AND FITNESSCENTER OPERATOR'S ENTIRE OUTSTANDING 259 MILLION OF 13 1/4 MORTGAGEBACKED NOTES DUE 1995 AT A REDEMPTION PRICE OF 10294 OF PAR ARTHUR GOLDBERG CHAIRMAN OF BALLY SAID THE STRONG BOND MARKET COUPLED WITH INVESTOR RECOGNITION OF THE SUBSTANTIAL COMPLETION OF BALLY'S RESTRUCTURING EFFORTS HAS ALLOWED US TO SIGNIFICANTLY REDUCE THE INTEREST COST ON OUR DEBT 9303120022 930312 NEW YORK IS MOVING CLOSER TO GAMBLING IN TRIBAL LAND CASINOS SPECIAL TO THE WALL STREET JOURNAL NEW YORK NEW YORK STATE MOVED ONE STEP CLOSER TO HAVING CASINO GAMBLING ON TRIBAL LANDS THE STATE AND TWO NATIVE AMERICAN TRIBES HAVE SUBSTANTIALLY REACHED A COMPACT THAT IF APPROVED WOULD ALLOW THE TRIBES TO OFFER SOME FORM OF CASINOSTYLE GAMBLING ON THEIR LANDS IN THE STATE THE COMPACT IS FINISHED AND ON THE GOVERNOR'S DESK AND WE HOPE HE WILL SIGN IT SAID NIELS HOLCH AN ATTORNEY REPRESENTING THE ONEIDA NATION ONE OF THE TWO TRIBES INVOLVED THE OTHER IS THE ST REGIS MOHAWK TRIBE REPRESENTATIVES OF BOTH TRIBES AND NEW YORK STATE DECLINED TO ELABORATE ON WHAT TYPES OF GAMBLING THE TRIBES WOULD BE ALLOWED TO OFFER UNDER THE COMPACT HOWEVER IT IS BELIEVED THAT SLOT MACHINES HAVE BEEN RULED OUT WHILE SOME FORMS OF TABLE GAMES WOULD BE ALLOWED A SPOKESMAN FOR NEW YORK GOV MARIO CUOMO WAS RESERVED IN HIS CHARACTERIZATION OF THE COMPACT BUT DID CONFIRM THAT THE FIRST PHASE OF THE NEGOTIATIONS ARE SUBSTANTIALLY COMPLETE THE GOVERNOR WANTS THE LEGISLATURE TO SIGN OFF ON ANY DEAL AS WELL THE SPOKESMAN SAID UNDER FEDERAL LAW ONLY THE SECRETARY OF THE INTERIOR NEEDS TO APPROVE A FINISHED COMPACT AFTER A TRIBE AND STATE HAVE REACHED AGREEMENT AND IN THE RELATIVELY SHORT HISTORY OF STATENATIVE AMERICAN NEGOTIATIONS AROUND THE US THE STATES' EXECUTIVE BRANCHES HAVE GENERALLY BEEN SOLELY RESPONSIBLE FOR REPRESENTING THE STATES SOME NATIVE AMERICANS BELIEVE GOV CUOMO IS TRYING TO STALL BY GETTING THE LEGISLATURE INVOLVED IT'S DIFFICULT TO CONCLUDE OTHERWISE SAID JOSEPH GRAY A SPOKESMAN FOR THE MOHAWK TRIBE THE GOVERNOR HOWEVER BELIEVES THE COMPACT WILL NEED THE LEGISLATURE'S SUPPORT TO BE COMPLETE HIS SPOKESMAN SAID 9303120021 930312 SIEMENS SAYS PROFIT FOR THIS FISCAL YEAR TO TRAIL YEAR EARLIER MUNICH GERMANY SIEMENS AG SAID RESULTS IN THE CURRENT FISCAL YEAR WON'T MATCH LAST YEAR'S NET INCOME OF 195 BILLION MARKS 117 BILLION AS RECENTLY AS MIDJANUARY THE COMPANY WAS FORECASTING THAT THIS YEAR WHICH ENDS SEPT 30 WOULD MATCH LAST YEAR'S RESULTS BUT HEINRICH VON PIERER CHAIRMAN OF THE GERMAN ELECTRONICS GIANT SPEAKING AT THE ANNUAL MEETING SAID THAT RESULTS FROM THE FIRST FIVE MONTHS CONFIRM THE SLOWING OF BUSINESS SALES HAVE RISEN 28 IN THE FIRST FIVE MONTHS TO 295 BILLION MARKS BUT ORDERS A STRONGER GUIDE TO FUTURE PERFORMANCE SLIPPED 21 IN THE FIRST FIVE MONTHS TO 33 BILLION MARKS FROM 337 BILLION MARKS THE SLOWDOWN IN ORDERS STEMMED FROM SIEMENS'S DOMESTIC BUSINESSES WHERE ORDERS FELL 44 TO 152 BILLION MARKS FROM THE YEAREARLIER LEVEL OF 159 BILLION MARKS FOREIGN ORDERS WERE LITTLE CHANGED AT 178 BILLION MARKS FOR THE FULL YEAR MR VON PIERER SAID HE EXPECTS ORDERS TO RISE ABOUT 1 TO 86 BILLION MARKS FROM THE YEAR EARLIER WHILE SALES WILL RISE ABOUT 6 TO 83 BILLION MARKS FROM THE YEAREARLIER LEVEL OF 786 BILLION MARKS HOWEVER THE UNCERTAIN ECONOMIC CLIMATE MAKES PROJECTIONS DIFFICULT MR VON PIERER SAID ON OTHER MATTERS SIEMENS SAID IT HAS TRIMMED ITS WORK FORCE BY 6000 WORKERS DURING THE FIRST FIVE MONTHS AND AS OF THE END OF FEBRUARY EMPLOYED 407000 PEOPLE BY THE END OF THE FISCAL YEAR SIEMENS'S WORK FORCE WILL FALL BELOW 400000 AS SIEMENS SHEDS WORKERS ITS FINANCIALLY TROUBLED SIEMENS NIXDORF INFORMATIONSSYSTEME AG UNIT WILL ABSORB MOST OF THE LOSSES MR VON PIERER SAID 9303120020 930312 FINANCING BUSINESS NACCO INDUSTRIES INC NACCO INDUSTRIES INC CLEVELAND SAID ITS BOARD AUTHORIZED THE PURCHASE OF UP TO AN ADDITIONAL 50 MILLION PRINCIPAL AMOUNT OF 12 3/8 SENIOR SUBORDINATED DEBENTURES DUE AUG 1 1999 OF ITS SUBSIDIARY HYSTERYALE MATERIALS HANDLING INC NACCO HAS PURCHASED ALMOST ALL OF THE 25 MILLION PRINCIPAL AMOUNT OF SUCH DEBENTURES PREVIOUSLY AUTHORIZED BY ITS BOARD 9303120019 930312 WHAT'S NEWS BUSINESS & FINANCE PRIMERICA'S PURCHASE OF SHEARSON LEHMAN BROTHERS' BROKERAGE OPERATIONS FOR ABOUT 1 BILLION IN CASH AND SECURITIES WAS APPROVED BY THE BOARDS OF PRIMERICA AND SHEARSON'S PARENT AMERICAN EXPRESS PEOPLE FAMILIAR WITH THE MATTER SAID S&P AND MOODY'S HAVE RAISED NO OBJECTIONS TO THE DEAL SAID EXECUTIVES FAMILIAR WITH THE CREDITRATING AGENCIES OPEC HAS CUT OIL OUTPUT SHARPLY SUGGESTING THAT PRICES EVENTUALLY MAY RISE OUTSIDE MONITORS SAY EARLY SIGNS INDICATE PRODUCTION THIS MONTH ALREADY MAY BE DOWN MORE THAN THE OIL MINISTERS PLEDGED IN FEBRUARY THE CLINTON ADMINISTRATION IS LEANING TOWARD APPROVING AN ARRANGEMENT THAT WOULD BOLSTER STRUGGLING USAIR AND EXTEND BRITISH AIRWAY'S REACH INTO THE LUCRATIVE US DOMESTIC MARKET AMR UAL AND DELTA DEBT WAS DOWNGRADED TO SPECULATIVE GRADE BY S&P PUTTING 97 OF THE BELEAGUERED AIRLINE INDUSTRY AT JUNK STATUS GM PURCHASING CZAR LOPEZ IS LEAVING THE AUTO MAKER AND WILL LIKELY ASSUME A POSITION AT VOLKSWAGEN HIS DEPARTURE RAISES QUESTIONS ABOUT WHETHER GM WILL BE ABLE TO CONTINUE WITH HIS COSTCUTTING EFFORTS FORMER AMERICAN STOCK EXCHANGE CHAIRMAN ARTHUR LEVITT HAS EMERGED AS THE FRONTRUNNER TO HEAD THE SEC SAID ADMINISTRATION OFFICIALS RETAIL SALES ROSE A MODEST 03 IN FEBRUARY ANOTHER SIGN THAT CONSUMER SPENDING HAS SLOWED FROM ITS YEAREND PICKUP INITIAL CLAIMS FOR UNEMPLOYMENT INSURANCE ROSE TO A FOURMONTH HIGH IN THE WEEK ENDED FEB 27 MOST STOCK PRICES DROPPED ON THE ECONOMIC NEWS THE DOW JONES INDUSTRIALS SLID 2134 TO 345700 BOND PRICES DECLINED AND THE DOLLAR WEAKENED CLINTON'S 16 BILLION STIMULUS PLAN IS GETTING RENEWED SUPPORT FROM LIBERAL DEMOCRATS IN A REACTION TO CONSERVATIVE PRESSURE FOR MORE CUTS FROM THE PRESIDENT'S ECONOMIC PROGRAM MARRIOTT AGREED TO MODIFY A PLAN TO SPLIT ITSELF INTO A HOTELMANAGEMENT ARM AND A MUCH RISKIER REALESTATE COMPANY THE REVISIONS MOVE SOME OF THE REALESTATE CONCERN'S DEBT TO THE OTHER ENTITY AND ALSO SWAP EXISTING DEBT FOR HIGHERYIELDING BONDS PRUDENTIAL INSURANCE PUT ITS REINSURANCE UNIT UP FOR SALE ASKING A PRICE OF 12 BILLION THE ACTION HIGHLIGHTS THE SOARING VALUES OF REINSURERS IN THE AFTERMATH OF HURRICANE ANDREW GLAXO HOLDINGS IS REPLACING ERNEST MARIO AS CHIEF EXECUTIVE AND DEPUTY CHAIRMAN OF THE BRITISH DRUG COMPANY WITH RICHARD SYKES CURRENTLY RESEARCH AND DEVELOPMENT DIRECTOR THE LONDON STOCK EXCHANGE ENDED A DECADELONG PROJECT TO CREATE AN AUTOMATED TRADING SYSTEM AND THE EXCHANGE'S CHIEF EXECUTIVE RESIGNED COASTAL'S BEATTY WITHDREW FROM CONSIDERATION FOR A TOP DOE POST AMID CRITICISM OF THE ENERGY COMPANY'S BUSINESS TIES TO LIBYA HE ALSO ANNOUNCED HE IS LEAVING THE CONCERN RULES ON CABLETV COMPANIES WERE ADOPTED BY THE FCC THE REGULATIONS GOVERN THE SYSTEMS' SERVICE AND USE OF LOCAL OVERTHEAIR TV SIGNALS BLUE CROSS AND IBM ANNOUNCED A JOINT PROJECT AIMED AT INCREASING THE NUMBER OF MEDICAL CLAIMS THAT ARE PROCESSED ELECTRONICALLY S&LS' FOURTHPERIOD EARNINGS ROSE 48 THE THRIFTS POSTED RECORD ANNUAL NET OF 514 BILLION MORE THAN 30 ABOVE THE PREVIOUS RECORD IN 1978 JAPAN'S AZABU BUILDING IS IN A DISPUTE WITH MITSUI TRUST THE REAL ESTATE CONCERN'S KEY LENDER ANALYSTS SAY THE FEUD COULD MEAN HUGE LOSSES FOR MANY MAJOR JAPANESE FINANCIAL FIRMS TOKYO STOCKS FIRMED SLIGHTLY AS THE NIKKEI INDEX ROSE 4616 POINTS TO 1790479 FOR ITS FIFTH CONSECUTIVE GAIN FRANKFURT SHARES CLIMBED TO A 1993 RECORD FOR THE SECOND TIME THIS WEEK BONDS LEHMAN BROTHERS TREASURY INDEX 505804 OFF 1145 COMMODITIES OIL 2013 A BARREL OFF 26 CENTS DOW JONES FUTURES INDEX 13084 UP 052 SPOT INDEX 12421 OFF 033 DOLLAR 11761 YEN OFF 044 16615 MARKS OFF 00048 9303120017 930312 BUSINESS BRIEF ARTISOFT INC QUARTER'S PROFIT SEEN SHORT OF ANALYSTS' EXPECTATIONS ARTISOFT INC TUCSON ARIZ SAID EARNINGS IN THE THIRD QUARTER ENDING MARCH 31 WILL FALL SHORT OF ANALYSTS' EXPECTATIONS THE COMPUTERPRODUCTS MAKER SAID IT BELIEVES NET INCOME WILL BE AT OR SLIGHTLY BELOW BREAKEVEN COMPARED WITH 36 MILLION OR 21 CENTS A SHARE A YEAR AGO REVENUE IN THE CURRENT PERIOD MAY BE BELOW THE YEAREARLIER 203 MILLION ARTISOFT SAID THE COMPANY SAID A REVENUE DECLINE WOULD PRIMARILY BE CAUSED BY A SHIFT IN ITS SALES MIX TOWARD SOFTWAREONLY VERSIONS OF ITS NETWORK OPERATING SYSTEM AND AWAY FROM HARDWARE ADAPTERDEPENDENT VERSIONS OF THE SYSTEM THE ANTICIPATED DECLINE IN EARNINGS WOULD RESULT FROM THE REVENUE SHORTFALL COUPLED WITH INCREASED RESERVES FOR INVENTORY AND ACCOUNTS RECEIVABLE AND CERTAIN ONETIME CHARGES AND ADJUSTMENTS TO ACCRUALS A SPOKESMAN DECLINED TO ELABORATE 9303120016 930312 AMERICAN RESIDENTIAL FILES STOCK LA JOLLA CALIF AMERICAN RESIDENTIAL HOLDING CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 25 MILLION SHARES OF NEW AND EXISTING COMMON STOCK ABOUT 80 OF THE OFFERING WILL BE USED BY THE BANK HOLDING COMPANY TO INCREASE PRODUCTION CAPABILITIES AND ACQUIRE SERVICING POSSIBLY THROUGH ACQUISITIONS AND FOR GENERAL CORPORATE PURPOSES THE REMAINING 20 OF THE PROCEEDS WILL GO TO SELLING SHAREHOLDERS NO SHARES WILL BE SOLD BY MANAGEMENT 9303120015 930312 SURE IT'S A HEADACHE BUT LOOK AT HOW MUCH YOU COULD SAVE BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL REFINANCING YOUR MORTGAGE CAN BE A ROYAL PAIN BUT WITH MORTGAGE RATES AT THEIR LOWEST LEVELS IN MORE THAN TWO DECADES THE SAVINGS CAN BE PRINCELY RATES HAVE DROPPED SO SHARPLY THAT EVEN SOME PEOPLE WHO GOT A MORTGAGE A YEAR AND A HALF OR TWO YEARS AGO MAY BE ABLE TO SAVE A BUNDLE BY REPLACING THAT OLD LOAN WITH A NEW CHEAPER MORTGAGE SOME HOMEOWNERS WITH 30YEAR MORTGAGES CAN SWITCH TO 15YEAR LOANS TO PAY OFF THEIR DEBT IN HALF THE TIME AND PAY ABOUT THE SAME EACH MONTH AS THEY DO NOW THIS IS A TERRIFIC TIME TO CONSIDER REFINANCING SAYS PETER LYNCH THE LEGENDARY INVESTMENT MANAGER WHO FORMERLY HEADED FIDELITY MAGELLAN FUND CONSIDER THE RESULTS OF THE LATEST WEEKLY SURVEY OF MORTGAGE LENDERS BY HSH ASSOCIATES IN BUTLER NJ THE AVERAGE RATE ON 30YEAR FIXEDRATE LOANS HAS MELTED TO ABOUT 750 FROM 912 AS RECENTLY AS ONE YEAR AGO THESE LOANS AVERAGE ABOUT 15 POINTS A POINT TYPICALLY PAYABLE AT THE TIME OF THE LOAN'S CLOSING REPRESENTS ONE PERCENT OF THE AMOUNT OF THE LOAN THUS A BORROWER PAYING A POINT ON A 100000 MORTGAGE WOULD PAY 1000 A GROWING NUMBER OF LENDERS NOW OFFER RATES AS LOW AS 6875 WITH ABOUT THREE POINTS EVEN LOWER RATES ARE AVAILABLE ON SHORTERTERM MORTGAGES FOR EXAMPLE THE AVERAGE RATE ON 15YEAR MORTGAGES HAS TUMBLED TO ABOUT 7 WITH 15 POINTS THAT'S DOWN FROM 859 A YEAR AGO SOME GO AS LOW AS 6375 WITH THREE POINTS ADJUSTABLERATE MORTGAGES TYPICALLY OFFER FIRSTYEAR RATES OF ABOUT 475 WITH ABOUT 15 POINTS BUT SOME LENDERS ARE OFFERING FIRSTYEAR RATES AS LOW AS 375 WITH ABOUT THREE POINTS A YEAR AGO COMPARABLE LOANS WERE 614 MANY ADJUSTABLERATE LOANS CARRY PROVISIONS LIMITING THE INCREASE TO TWO PERCENTAGE POINTS A YEAR OR FIVE TO SIX PERCENTAGE POINTS OVER THE LOAN'S LIFE WITH A SIXPOINT CAP THE RATE ON A 375 LOAN COULD NEVER EXCEED 975 NOTES HSH VICE PRESIDENT PAUL HAVEMANN SEARCHING FOR THE BEST RATE CAN BE INTIMIDATING FRUSTRATING AND EVEN BEWILDERING IT CAN ALSO INVOLVE HIGHLY SUBJECTIVE FACTORS SUCH AS HOW MUCH INTERESTRATE RISK ONE IS WILLING TO TAKE STILL THIS IS AS GOOD A TIME AS I CAN EVER RECALL TO CONSIDER REFINANCING SAYS THOMAS P OCHSENSCHLAGER A PARTNER AT THE ACCOUNTING FIRM OF GRANT THORNTON CONSIDER A COUPLE PAYING 9375 ON A 100000 30YEAR FIXEDRATE MORTGAGE THEY TOOK OUT A FEW YEARS AGO WITH A NEW 30YEAR LOAN AT 75 THE MONTHLY PAYMENT OF PRINCIPAL AND INTEREST WOULD DROP TO ABOUT 699 FROM 832 A SAVINGS OF 133 A MONTH SAYS MIKE BRYANT A SENIOR MANAGER AT GRANT THORNTON MANY BORROWERS EAGER TO REDUCE DEBT ARE TAKING SHORTERTERM LOANS PEOPLE ARE FINDING THEY CAN TRADE IN THEIR 30YEAR MORTGAGE FOR A 15YEAR MORTGAGE AND GET ESSENTIALLY THE SAME PAYMENT WHILE CUTTING THE MORTGAGE TERM IN HALF SAYS MR BRYANT MANY PEOPLE ARE FOLLOWING THAT STRATEGY IN ORDER TO SAVE LARGE AMOUNTS OF INTEREST OVER THE LIFE OF THE LOAN SAYS MR OCHSENSCHLAGER START BY TRYING TO ESTIMATE HOW LONG YOU ARE LIKELY TO REMAIN IN YOUR HOME IT'S SIMPLE IF YOU'RE PLANNING TO STAY IN YOUR HOME ONLY TWO OR THREE YEARS AND THEN TRADE UP TO SOMETHING ELSE OR MOVE TO ANOTHER PART OF THE COUNTRY THEN YOU SHOULD GO WITH AN ADJUSTABLERATE MORTGAGE SAYS MR LYNCH HE GENERALLY RECOMMENDS FIXEDRATE MORTGAGES FOR PEOPLE WHO EXPECT TO REMAIN IN THEIR HOMES FOR FIVE TO 10 YEARS OR MORE AFTER ALL HE SAYS IF RATES CONTINUE TO PLUNGE OWNERS CAN REFINANCE ONCE AGAIN AT A LATER DATE AND IF RATES GO UP THEN YOU'VE LOCKED IN A GOOD RATE IT'S HEADSYOUWIN TAILSYOUWIN STILL SHORTTERM RATES TODAY ARE SO MUCH LOWER THAN LONGTERM RATES THAT AN ADJUSTABLERATE MORTGAGE OR ARM COULD MAKE SENSE FOR MANY PEOPLE MANY CUSTOMERS WALKING INTO BOSTON SAFE DEPOSIT & TRUST CO THINKING ABOUT A FIXEDRATE LOAN ARE LEAVING WITH AN ADJUSTABLERATE LOAN SAYS J DAVID OFFICER EXECUTIVE VICE PRESIDENT THESE BORROWERS CONCLUDE THEY HAVE TO PAY THE LENDER TOO MUCH TO LOCK IN A FIXED RATE COMPARED WITH AN ARM THE PREMIUM CAN BE HUGE HE SAYS ON A 500000 LOAN THAT CAN BE A PREMIUM OF 20000 IN THE FIRST YEAR AND AROUND 10000 EVERY YEAR AFTER THAT DON'T TAKE AN ARM WITHOUT FIRST CHECKING TO SEE IF YOU COULD COPE IF INTEREST RATES SURGED AND YOUR RATE ROSE THE MAXIMUM AMOUNT EACH YEAR A LOT OF PEOPLE ARE JUST MAKING IT WITH AN ARM SAYS MR LYNCH IF RATES GO UP WHAT HAPPENS TO THEIR LIFESTYLE OR IF ONE OF THE COUPLE GETS LAID OFF OR INJURED OR IF THEY HAVE A CHILD AND ONE SPOUSE HAS TO STOP WORKING IT CAN GET A LITTLE TRICKY PICKING BETWEEN A 15YEAR AND 30YEAR LOAN DEPENDS ON THE CASH NEEDS AND BUDGET OF THE INDIVIDUAL OR FAMILY IF YOU CAN HANDLE THE PAYMENTS ON A 15YEAR MORTGAGE IT'S GENERALLY A BETTER IDEA TO DO IT IN 15 YEARS MR LYNCH SAYS YOU'RE BASICALLY GOING TO PAY OFF YOUR LOAN FASTER AND BUILD UP YOUR NET WORTH THAT MUCH FASTER BUT THERE ARE ARGUMENTS TO BE MADE FOR THE 30YEAR MORTGAGE IT OFFERS A LOWER MONTHLY PAYMENT AND WHILE TOTAL INTEREST PAYMENTS ARE GREATER THERE ARE TAX SAVINGS THAT PARTLY OFFSET THE INTEREST BURDEN TAX SAVINGS ARE PARTICULARLY IMPORTANT IF TAX RATES RISE AND IF CONGRESS DOESN'T CHIP AWAY AT THE MORTGAGE DEDUCTION AND IF YOU REALLY WANT TO PAY YOUR MORTGAGE OFF IN LESS THAN 30 YEARS YOU CAN STILL DO SO BY MAKING EXTRA PRINCIPAL PAYMENTS HOMEOWNERS PROBABLY WILL BE STARTLED BY HOW MUCH THEY CAN SAVE BY CALLING SEVERAL LENDERS FINANCIAL PLANNERS SAY A SURPRISINGLY LARGE NUMBER OF PEOPLE DON'T BOTHER PERHAPS BECAUSE THEY ARE CONFUSED BORED OR INTIMIDATED ANYONE WHO IS INTERESTED IN REFINANCING SHOULD CONTACT AT LEAST THREE COMMERCIAL BANKS THREE THRIFTS AND THREE MORTGAGE COMPANIES ADVISES DAVID BERSON A VICE PRESIDENT AT FEDERAL NATIONAL MORTGAGE ASSOCIATION THE RATES AND OTHER TERMS OF A LOAN CAN DIFFER SUBSTANTIALLY I REALIZE IT'S AGGRAVATING TO MAKE ALL THOSE CALLS BUT THE RESULT CAN BE MONEY IN YOUR POCKET HOMEOWNERS IN MAJOR METROPOLITAN AREAS MAY SAVE TIME BY ORDERING A COMPUTERIZED LIST OF LENDERS AND RATES FROM HSH ASSOCIATES 8008732837 FOR 20 HSH ALSO OFFERS A 12PAGE DOITYOURSELF BOOKLET CALLED THE HSH REFINANCE KIT IT WALKS HOMEOWNERS THROUGH THE PROCESS THE KIT IS 3 OR 1 FOR ANYONE WHO ALSO BUYS A COMPUTERIZED LIST OF LENDERS BE SURE TO ASK LENDERS HOW MUCH THEY WOULD CHARGE ON LOANS THAT INVOLVE LARGE AMOUNTS OF POINTS AS WELL AS THOSE WITH SMALL AMOUNTS OF POINTS OR NO POINTS AT ALL THE HIGHER THE POINTS TYPICALLY THE LOWER THE RATE REMEMBER THAT POINTS PAID IN A REFINANCING TYPICALLY AREN'T DEDUCTIBLE IN FULL IN THE YEAR THAT YOU PAID THEM INSTEAD BORROWERS TYPICALLY MUST SPREAD THEM OVER THE LIFE OF THE LOAN BEFORE MAKING YOUR DECISION BE SURE TO FIND OUT ALL THE COSTS INVOLVED IN REFINANCING THESE COSTS CAN VARY WIDELY BY REGION IN ADDITION TO POINTS THESE MAY INCLUDE THE COST OF AN APPRAISAL AN APPLICATION FEE TITLE INSURANCE MORTGAGE TAX A SURVEY AND LEGAL FEES EXCLUDING POINTS TOTAL COSTS CAN EASILY AMOUNT TO 2 TO 3 OF THE MORTGAGE SAYS WARREN LASKO EXECUTIVE VICE PRESIDENT OF THE MORTGAGE BANKERS ASSOCIATION OF AMERICA ALSO CHECK TO SEE IF THERE IS ANY PREPAYMENT PENALTY TO GET RID OF YOUR OLD MORTGAGE THAT'S UNUSUAL HOWEVER THESE DAYS MR LASKO ADDS SOME LENDERS OFFER NOCOST LOANS BUT THOSE ARE SOMETHING OF A MISNOMER IN EXCHANGE FOR PAYING NO POINTS AN OWNER TYPICALLY PAYS A HIGHER INTEREST RATE OVER THE LIFE OF THE LOAN WHICH COULD BE EXPENSIVE FOR SOMEONE WHO STAYS IN THE HOME A LONG TIME EVEN THOUGH RATES HAVE PLUNGED SOME WOULDBE REFINANCERS MAY DISCOVER IT ISN'T WORTH THE EFFORT HOMEOWNERS IN SOME AREAS SUCH AS IN PARTS OF NEW ENGLAND AND CALIFORNIA MAY DISCOVER THE RESALE VALUE OF THEIR HOME HAS DROPPED SO SHARPLY THAT LENDERS REQUIRE LARGE AMOUNTS OF ADDITIONAL CASH BEFORE MAKING A NEW LOAN FACTOR IN THE OPPORTUNITY COST OR WHAT THE HOMEOWNER COULD HAVE EARNED ON THAT MONEY AND THE BIG SAVINGS OF A REFINANCING MAY EVAPORATE IN A HURRY SEE RELATED ARTICLE YOUR MONEY MATTERS WEEKEND REPORT HOW TO AVOID THE PITFALLS IN MORTGAGE REFINANCING WSJ MARCH 12 1993 9303120013 930312 MARKETING PHOTOGRAPHY COMPANIES FOCUS ON NICHES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL PHOTO COMPANIES WANT TO CASH IN ON YOUR FAMILY WITH FILM SALES DOWN FOR THE SECOND CONSECUTIVE YEAR FILMMAKERS ARE WORKING HARDER TO EXPLOIT PROMISING NICHE MARKETS MOMS KIDS AND OLDER FOLKS NEXT WEEK THE TINY KONICA USA INC UNIT OF KONICA CORP TOKYO IS TO BEGIN SHIPPING 400SPEED BABY FILM WHICH IS DESIGNED TO BRING OUT THE VERY DELICATE SKIN TONES OF YOUNG CHILDREN'S FACES PRODUCT LITERATURE ASSERTS TO PUSH THE FILM KONICA IS HOLDING A SWEEPSTAKES WITH A 25000 SCHOLARSHIP AS GRAND PRIZE IN MAY EASTMAN KODAK CO THE NO 1 US FILMMAKER PLANS TO START SHIPPING CHILDREN'S PHOTO HOBBY KITS TO KMART CORP WALMART STORES INC AND OTHER MASS MERCHANDISERS TO REACH OLDER PEOPLE IT'S TRAINING ITS OWN RETIREES TO TEACH PHOTOGRAPHY TO MEMBERS OF THEIR RETIREMENT HOMES AND CHURCHES AND LATER THIS YEAR POLAROID CORP PLANS TO PROMOTE SOME PRODUCTS THROUGH THE AMERICAN ASSOCIATION OF RETIRED PERSONS NEW AD STRATEGIES ARE IN THE WORKS TOO AFTER DECADES OF ADVERTISING ON GENERALINTEREST FAMILY SHOWS FILM COMPANIES ARE BRANCHING OUT TO SOAP OPERAS AND CABLE TV BOTH KONICA AND KODAK WILL ADVERTISE ON DAYTIME SOAPS THIS SUMMER TO REACH MOTHERS WHILE KODAK WILL ALSO PUSH FILM TO TEENS ON BEVERLY HILLS 90210 AND MTV IN PRINT KODAK IS CONSIDERING SHIFTING SOME PRINTAD DOLLARS TO SUCH MAGAZINES AS SENIORS WORKING MOTHER AND YOUR PROM THE RENEWED FOCUS ON NICHE MARKETS IS A MATTER OF SURVIVAL LAST YEAR US CONSUMERS BOUGHT 718 MILLION ROLLS OF FILM DOWN 4 FROM 748 MILLION A YEAR EARLIER AND DOWN 54 FROM 759 MILLION IN 1990 WE NEED MORE GROWTH SAYS BOB LAPERLE KODAK'S GENERAL MANAGER CONSUMER PRODUCTS AND PROGRAMS LOCATING THE CUSTOMER IS GETTING MORE DIFFICULT SAYS BARRY HARRAND MARKETINGRESEARCH DIRECTOR AT PHOTO MARKETING ASSOCIATION A TRADE GROUP IT'S MORE IMPORTANT TO DIFFERENTIATE PRODUCTS AND SERVICES INDUSTRY WATCHERS HAD ATTRIBUTED DWINDLING DEMAND FOR FILM TO THE WEAK ECONOMY AND GROWING POPULARITY OF CAMCORDERS BUT KODAK RESEARCH ATTRIBUTES THE SLUMP TO SHIFTING DEMOGRAPHICS AS YOUNGER AND OLDER PEOPLE HAVE GAINED BUYING POWER COMPANIES' MARKETING STRATEGIES HAVEN'T KEPT PACE YOU CAN'T JUST THINK OF THE CONSUMER AS AN IMAGINARY 18TO45YEAROLD PERSON SAYS MR LAPERLE OF COURSE FILM COMPANIES HAVE MARKETED TO FAMILY SEGMENTS BEFORE MOST COMPANIES HAVE AN ENTRYLEVEL CAMERA AIMED AT CHILDREN KODAK AND ARCHRIVAL FUJI PHOTO FILM USA A UNIT OF FUJI PHOTO FILM CO TOKYO HAVE GIVEN AWAY FREE FILM IN PROMOTIONS WITH SCHOOLS FOUR YEARS AGO POLAROID LAUNCHED ITS INSTANT COOL CAM CAMERA TO A LUKEWARM CHILDREN'S MARKET AND NEARLY ALL CAMERA MAKERS HAVE TRIED TO APPEAL TO CHILDREN AND OLDER PEOPLE WITH FOOLPROOF CAMERAS THAT FOCUS AND ADVANCE FILM AUTOMATICALLY FUJI CAMERAS ALSO ARE SELFLOADING SO USERS DON'T HAVE TO THREAD FILM ONTO SPROCKETS THAT'S A GREAT BOON FOR OLDER PEOPLE I'VE GONE THROUGH THE NIKON STAGE WHERE YOU FOCUS NOW I WANT TO HAVE EVERYTHING AUTOMATIC SAYS CAROL JOHNSTON A 50YEAROLD ACTIVITIES COORDINATOR AT THE SENIOR CENTER OF WEST SEATTLE FOOLPROOF FEATURES HAVE MADE CARDBOARD CAMERAS THE FASTESTGROWING SEGMENT OF THE PHOTO MARKET WITH THE FILM ALREADY INSIDE THEY DON'T HAVE TO BE LOADED OR UNLOADED ONCE THE ROLL IS SHOT PICTURE TAKERS SIMPLY GIVE THE ENTIRE CAMERA TO A PHOTO LAB THAT DEVELOPS THE PICTURES AND RECYCLES PARTS OF THE CAMERA THE REAL GROWTH MARKET IS THE ELDERLY ALTHOUGH MOST ARE ON FIXED INCOMES THEY GENERALLY HAVE MORE TIME TO VISIT GRANDCHILDREN OR INDULGE IN SUCH HOBBIES AS BIRDWATCHING BOTH ARE MAJOR PICTURETAKING OPPORTUNITIES POLAROID FIGURES THAT THERE ARE THREE TYPES OF ELDERLY PERSON ACTIVE HOBBYISTS AND INACTIVE WE CALL THEM THE GOGOS THE LOWGOS AND THE NOGOS AND WE'RE GOING AFTER THE GOGOS SAYS MARIO CASTANEDA MARKETING MANAGER NEWBUSINESS DEVELOPMENT MARKETING TO OLDER PEOPLE IS SOMETIMES AS EASY AS CHANGING A PRODUCT PACKAGE OR MAKING A KNOB BIGGER KODAK AND FUJI HAVE PUT LARGER PRINT ON THEIR FILM BOXES AND POLAROID IS ELIMINATING SOME FINE PRINT TO MAKE ROOM FOR LARGER FILMSPEED NUMBERS LAST MONTH KODAK INTRODUCED A NEW VERSION OF ITS PANORAMIC CARDBOARD CAMERA WITH A MAGNIFYING LENS OVER THE EXPOSURENUMBER INDICATOR POLAROID BECAME INTERESTED IN THE ELDERLY MARKET IN 1991 WHEN ITS STUDIES SHOWED THAT OLDER PEOPLE USE ITS INSTANTPHOTO PRODUCTS MORE THAN ANY OTHER AGE GROUP SINCE THEN THE COMPANY HAS BEEN ADVERTISING IN MODERN MATURITY THIS APRIL IT WILL ALSO ADVERTISE IN NEW CHOICES A READER'S DIGEST MAGAZINE FOR WEALTHY OLDER PEOPLE FUJI WHICH HAS POSITIONED ITSELF AS THE FILM COMPANY FOR YOUNG HIP CUSTOMERS SAYS IT ALSO TRIES TO APPEAL TO THE ELDERLY GENERALLY WITH CAMERAS THAT LOAD FILM WITHOUT ANY THREADING AND HAVE CLEARLY MARKED CONTROLS BUT NOW THAT THE POPULATION IS AGING WE'RE GOING TO HAVE TO BE LOOKING MORE AT THE SENIOR MARKET A SPOKESMAN SAYS OF COURSE THERE ARE PITFALLS TO NICHE MARKETING SEVERAL FILM EXECUTIVES SNICKERED AND ROLLED THEIR EYES FOR INSTANCE WHEN THEY HEARD ABOUT KONICA'S BABYFILM PRODUCT WHICH SELLS AT A 58CENT PREMIUM TO KONICA'S 200SPEED FILM KONICA COUNTERS THAT THE BABY FILM HAS SOLD SUCCESSFULLY AT PREMIUM PRICES FOR THREE YEARS IN JAPAN AND FOR 18 MONTHS IN CANADA CHILDREN ARE AN ESPECIALLY TOUGH MARKET POLAROID'S COOL CAM INSTANT CAMERAS TARGETED AT 9TO14YEAROLDS WERE POPULAR WITH COLLEGE STUDENTS WHO LIKED THE BRIGHT COLORS BUT A TURNOFF TO YOUNGER CHILDREN WHO DIDN'T LIKE THE NAME THEY THOUGHT IT WAS A LITTLE HOKEY CONCEDES MR CASTANEDA YOU TRY TO SPEAK TO KIDS IN THEIR OWN LANGUAGE THEY'RE PRETTY SMART THEY CATCH ON KODAK HAS HIGH HOPES FOR ITS PHOTO FX HOBBY KITS FOR CHILDREN BASED ON FEEDBACK FROM FOCUS GROUPS BUT IT'S LESS SURE ABOUT A NEW PRODUCT STORY ALBUMS WHICH CHILDREN ILLUSTRATE WITH PICTUES OF THEIR FRIENDS AND FAMILIES KODAK SAYS THE 10 ALBUMS HAVE SOLD WELL IN TEST MARKETS IN BOSTON AND CHICAGO BUT IT'S TOO EARLY TO TELL WHETHER THE PRODUCT WILL BE LAUNCHED NATIONWIDE 9303120012 930312 ECONOMY CONSERVATIVES TRIGGER BACKLASH IN PUSH FOR YET MORE CUTS IN CLINTON'S PROGRAM BY DAVID ROGERS AND JOHN HARWOOD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONSERVATIVE PRESSURE FOR MORE CUTS FROM PRESIDENT CLINTON'S ECONOMIC PROGRAM IS PROVOKING A BACKLASH FROM LIBERAL DEMOCRATS AND RENEWED DETERMINATION TO ADOPT THE ADMINISTRATION'S 16 BILLIONPLUS STIMULUS BILL INTACT THERE'S VERY STRONG OPPOSITION IN THE CAUCUS TO MAJOR CUTBACKS OR SCALING BACK OF THE STIMULUS PACKAGE SAID HOUSE SPEAKER THOMAS FOLEY AND PROMINENT BLACK DEMOCRATS WARNED THAT TAMPERING WITH THE BILL WOULD UNDERMINE MINORITY SUPPORT FOR THE BUDGET RESOLUTION NEXT WEEK CONSERVATIVE DEMOCRATS WHO HAVE A BIG STAKE IN THE SPENDING CUTS ALREADY NEGOTIATED IN THE FIVEYEAR BUDGET APPEARED TAKEN ABACK BY THE STRENGTH OF THE EMOTIONS EXPRESSED BUT GREATER ANGER IN THE HOUSE WAS DIRECTED AT THE SENATE WHERE LEADING DEMOCRATS HAVE THREATENED TO KILL THE STIMULUS MEASURE UNLESS CONCESSIONS ARE MADE AT A SOMETIMES RAUCOUS HOUSE DEMOCRATIC WHIP MEETING REP PHIL SHARP A TACITURN INDIANA MODERATE ANNOUNCED HE WAS HONKED OFF BY THE SENATE PROVOKING LAUGHTER AND A CHORUS OF SUPPORTIVE HONKS FROM HIS COLLEAGUES FEARFUL OF THE DEEPENING SPLIT BETWEEN THE TWO CHAMBERS THE DEMOCRATIC LEADERSHIP HOPES TO REACH SOME COMPROMISE ON THE STIMULUS BILL BEFORE IT COMES TO A FLOOR VOTE NEXT WEEK BUT IMPLICIT IN MR FOLEY'S REMARKS WAS A WARNING TO THE WHITE HOUSE THAT IT MUST TAKE A MORE FORCEFUL STAND FOR THE MEASURE THAT'S SENATE TALK SAID MR FOLEY OF A PROPOSAL TO DELAY PORTIONS OF THE STIMULUS FUNDING UNTIL DEFICITREDUCTION MEASURES ARE FULLY ENACTED THIS SUMMER LACKING SOLID SUPPORT IN THE SENATE THE WHITE HOUSE HAD SIGNALED THIS WEEK THAT SUCH AN OPTION MIGHT BE CONSIDERED BUT A CLINTON ADMINISTRATION OFFICIAL SAID THE PRESIDENT DOESN'T WANT A NICKEL CUT FROM THE STIMULUS PROGRAM AND FEELS MORE COMMITTED TO IT NOW GIVEN THE REDUCTIONS HE HAS BEEN FORCED TO ACCEPT BY CONGRESSIONAL BUDGET WRITERS IN PRIVATE MEETINGS WITH LAWMAKERS MR CLINTON HAS EVEN TAKEN TO QUOTING ADVICE HE APPARENTLY RECEIVED DURING THE RECENT VISIT OF THE CONSERVATIVE BRITISH PRIME MINISTER JOHN MAJOR TO BE MINDFUL OF UNEMPLOYMENT AND NOT TO SHRINK GOVERNMENT SPENDING TOO QUICKLY LAST NIGHT THE SENATE BUDGET COMMITTEE APPROVED IN A 129 PARTYLINE VOTE A BUDGET RESOLUTION THAT WOULD ADD 41 BILLION IN SPENDING CUTS AND 22 BILLION IN TAX INCREASES TO THE PRESIDENT'S PLAN OVER FIVE YEARS THE BUDGET BLUEPRINT APPROVED LATE WEDNESDAY BY THE HOUSE BUDGET COMMITTEE WOULD INCREASE SAVINGS IN THE CLINTON PLAN BY 62 BILLION PRIMARILY BY FORCING A FIVEYEAR FREEZE IN DISCRETIONARY SPENDING THAT COVERS GOVERNMENT OPERATIONS AND GRANT PROGRAMS AS DOES THE HOUSE BUDGET THE SENATE PROPOSAL SEEKS TO PUSH THE DEFICIT BELOW 200 BILLION BY THE END OF MR CLINTON'S TERM BY THE SAME TOKEN THE SENATE PLAN WOULD DEFER AS MUCH AS 31 BILLION OF THE 144 BILLION IN THE PRESIDENT'S LONGTERM INVESTMENT PROPOSALS CHAIRMAN JAMES SASSER ACKNOWLEDGED CONCERN THAT THE ZEAL FOR DEFICIT REDUCTION COULD HAVE A CHILLING EFFECT ON THE ECONOMY AT A TIME WHEN THE ADMINISTRATION IS ALREADY UNDER REPUBLICAN ATTACK FOR RELYING ON TAX INCREASES MR SASSER'S PLAN WOULD TACK ON ANOTHER TAX BOOST IT WOULD CAP THE VALUE OF TAX DEDUCTIONS AT 31 EVEN FOR THOSE HIGHINCOME TAXPAYERS WHOSE MARGINAL RATES WOULD RISE TO 36 OR 396 UNDER MR CLINTON'S PROPOSALS FOR A MARRIED COUPLE WITH TAXABLE INCOME OF 175000 CLAIMING 35000 IN DEDUCTIONS THE PROVISION WOULD ADD 1750 TO THEIR TAX BILL THOUGH TAXES HAVE RECEIVED THE MOST POLITICAL ATTENTION TO DATE BOTH BUDGET RESOLUTIONS ULTIMATELY WOULD IMPOSE FIXED CAPS ON THE ANNUAL APPROPRIATIONS APPROVED BY CONGRESS AND FORCE INTENSE COMPETITION FOR THE REMAINING DOLLARS THESE FIGHTS WILL PIT THE ADMINISTRATION'S INVESTMENT AGENDA AGAINST NOT ONLY EXISTING DOMESTIC PROGRAMS BUT ALSO THE PENTAGON BUDGET WHICH AFTER THIS YEAR WILL NO LONGER BE PROTECTED BY BUDGETARY WALLS IMPOSED UNDER THE 1990 DEFICITREDUCTION AGREEMENT WITH FORMER PRESIDENT BUSH WE'RE GOING TO HAVE TO KEEP THE WALLS DOWN WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID IN AN INTERVIEW AND AS MUCH AS THE CONSERVATIVE OFTEN RURAL DEMOCRATIC WING HAS TRIUMPHED IN IMPOSING TIGHTER SPENDING CAPS IT HAS HAD TO PAY A PRICE AT HOME BY ACCEPTING REDUCTIONS IN DEFENSE AS WELL AS AGRICULTURAL PROGRAMS FOR THIS REASON THERE WAS RESENTMENT AT THE CRITICISM FROM LIBERALS WHOSE MOREURBAN CONSTITUENCIES HAVE THE MOST TO GAIN FROM THE STIMULUS BILL AND BEHIND THE NUMBERS IS A LARGER CONFLICT AMONG LIBERAL DEMOCRATS THEMSELVES OVER THE NEED TO GIVE VOTERS A SENSE OF VISION OF WHERE THE PARTY WANTS TO TAKE THE GOVERNMENT SEN RUSSELL FEINGOLD A LIBERAL WISCONSIN FRESHMAN WHO HAS CHALLENGED THE WISDOM OF THE STIMULUS PACKAGE SAID THAT DEFICIT REDUCTION IS NEEDED NOT ONLY TO IMPROVE THE ECONOMY BUT ANSWER THE PUBLIC'S DEMAND THAT LAWMAKERS SHOW US YOU CAN RUN THE GOVERNMENT AS WE MUST RUN OUR HOMES BY CONTRAST HIS FELLOW DEMOCRAT REP GEORGE MILLER OF CALIFORNIA ARGUED THAT CUTTING FROM THE STIMULUS BILL WOULD ROB THE PARTY OF A CHANCE TO DIFFERENTIATE BETWEEN THE PAST AND THE NEW INVESTMENTS IT PROPOSES NOW THE STIMULUS PACKAGE WAS AN EFFORT TO SHOW WHERE GOVERNMENT CAN MAKE A DIFFERENCE SAID MR MILLER SPEAKING LESS OF JOB PROMOTION THAN THE MEASURE'S LONGTERM INVESTMENTS IN CHILD EDUCATION AND IMMUNIZATION WHILE WE'RE GETTING RID OF A LOT OF THE JUNK OF THE PAST WE HAVE TO SHOW WHAT WE CAN DO 9303120011 930312 HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1503 ADULTS 1186 OF THEM REGISTERED VOTERS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 315 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL TELEPHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 26 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR WAS 36 POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THAT GROUP'S SIZE SEE RELATED ARTICLE SEEKING A CURE MOST AMERICANS PLEDGE SACRIFICE TO HELP FIX THE HEALTH SYSTEM POLL SHOWS STUNNING BACKING FOR AN OVERHAUL GIVING THE PRESIDENT A BIG BOOST SUPPORT FOR EQUAL TREATMENT WSJ MARCH 12 1993 9303120010 930312 WHITEHALL INCREASES BUYBACK DALLAS WHITEHALL CORP SAID THE COMPANY'S BOARD APPROVED AN INCREASE IN THE COMPANY'S STOCK REPURCHASE PROGRAM TO 750000 SHARES WHITEHALL WHICH MODIFIES AND MAINTAINS MILITARY AND COMMERCIAL AIRCRAFT HAS ABOUT 28 MILLION COMMON SHARES OUTSTANDING 9303120009 930312 MANAGING MANAGING GLOBALLY BY JOANN S LUBLIN EXECUTIVE RECRUITERS SCRAMBLE TO EXPAND IN MEXICO AS THE PROSPECTIVE NORTH AMERICAN FREE TRADE AGREEMENT MAKES THEIR BUSINESS SURGE THE ACCORD AWAITING CONGRESSIONAL APPROVAL WOULD LIBERALIZE TRADE BETWEEN THE US MEXICO AND CANADA THE AGREEMENT ALREADY IS ENCOURAGING A NUMBER OF AMERICAN COMPANIES TO INCREASE THEIR MEXICAN PRESENCE THAT'S PRIMARILY WHY EXECUTIVE HIRING GREW 11 IN LATIN AMERICA LAST YEAR FASTER THAN IN ANY OTHER REGION WORLDWIDE CONCLUDES A SURVEY BY RECRUITERS KORN/FERRY INTERNATIONAL EGON ZEHNDER INTERNATIONAL REPORTS A 39 INCREASE IN THE NUMBER OF MEXICO SEARCHES IT HAS BEEN ASSIGNED OVER THE PAST 12 MONTHS COMPARED WITH ANNUAL GROWTH OF ABOUT 15 IN PREVIOUS YEARS WE ARE GETTING A LOT OF DEMAND FROM BOTH ESTABLISHED AND NEW US PLAYERS IN MEXICO SAYS DARIO PASTRANA AN EGON ZEHNDER PARTNER IN MEXICO CITY THE SEARCH FIRM IS HUNTING FOR A FOURTH PARTNER THERE MR PASTRANA ADDS IN 1989 IT HAD JUST TWO PARTNERS IN MEXICO OTHER SEARCH FIRMS EXPECT THEIR NEW ALLIANCES WITH MEXICAN RECRUITERS WILL SOON LEAD TO FULLFLEDGED OPERATIONS IN MEXICO AT KEARNEY EXECUTIVE SEARCH NOW COMPLETING A SEARCH FOR A PRESIDENT FOR A BIG US MANUFACTURER'S FIRST FORAY INTO MEXICO SAYS ITS MEXICAN AFFILIATE MAY BECOME A SEPARATE KEARNEY SEARCH OFFICE BY YEAR'S END SPENCERSTUART'S MEXICAN AFFILIATE HANDLED EIGHT ASSIGNMENTS FOR IT IN 1992 UP FROM THREE IN 1991 THOUGH SPENCERSTUART FORMED ITS MEXICAN AFFILIATION ONLY TWO YEARS AGO DAYTON OGDEN THE FIRM'S CHAIRMAN SAYS HE HOPES WE WOULD OWN OUR BUSINESS THERE WITHIN TWO YEARS BUT EXECUTIVE RECRUITERS EXCITED ABOUT MEXICO RUN THE RISK OF GOING IN THERE TOO FAST CAUTIONS SCOTT A SCANLON COEDITOR OF EXECUTIVE SEARCH REVIEW A GREENWICH CONN NEWSLETTER DEMAND FOR EXECUTIVES IN AN UNPREDICTABLE LOCALE LIKE MEXICO COULD FIZZLE AS QUICKLY AS IT HAS SPURTED MR SCANLON SUGGESTS MULTINATIONAL CORPORATIONS INCREASINGLY FIND IT TAKES PLENTY OF CAPITALIST PERKS TO LURE WESTERN MANAGERS TO FORMER COMMUNIST COUNTRIES IN EASTERN EUROPE POOR AIR QUALITY POLITICAL INSTABILITY AND SHORTAGES OF QUALITY HOUSING CREATE TOUGH LIVING CONDITIONS IN PARTS OF EASTERN EUROPE IT'S PROVING VERY VERY DIFFICULT TO GET PEOPLE TO GO THERE AND STAY SAYS CALVIN REYNOLDS A CONSULTANT FOR ORGANIZATION RESOURCES COUNSELORS NEW YORK WESTERN EMPLOYERS HAVE BEEN OFFERING MORE AND MORE BENEFITS TO GET PEOPLE TO GO THERE ORC OTHER RELOCATION CONSULTANTS AND EXECUTIVE RECRUITERS SAY PACKAGES FOR EXPATRIATE MANAGERS IN EASTERN EUROPE OFTEN NOW INCLUDE COMPANYPAID HOUSING SUBSIDIZED SHIPMENTS OF SCARCE CONSUMER GOODS UP TO FOUR TRIPS HOME A YEAR RATHER THAN THE USUAL ONE AND WEEKEND GETAWAYS IN WESTERN EUROPE MOST OF THE PEOPLE WE WANT TO BE THERE IN EASTERN EUROPE DO HAVE OPTIONS TO WORK ELSEWHERE NOTES FRED STEINGRABER CHAIRMAN AND CHIEF EXECUTIVE OF MANAGEMENT CONSULTANTS AT KEARNEY THAT IS PARTLY WHY THE HEAD OF KEARNEY'S PRAGUE OFFICE RECEIVES FOUR PAID TRIPS A YEAR EITHER FOR HIM TO GO TO THE US WHERE HIS FAMILY LIVES OR FOR THE FAMILY TO VISIT HIM IN THE CZECH REPUBLIC DIVERSITY MANAGEMENT EFFORTS BEGIN TO ACQUIRE AN INTERNATIONAL FLAVOR IN BIG AMERICAN BUSINESSES MANY MAJOR EMPLOYERS PROVIDE DIVERSITY TRAINING IN THE US THIS TRAINING SEEKS TO CREATE WORKPLACES CONDUCIVE TO RETAINING AND PROMOTING A DIVERSE WORK FORCE WITH MANY WOMEN AND MINORITY MEMBERS SOME CORPORATIONS EVEN LINK EXECUTIVES' PAY INCREASES PARTLY TO ACHIEVEMENT OF DIVERSITY GOALS NOW A HANDFUL OF COMPANIES INCLUDING DOW CHEMICAL NYNEX AND COLGATEPALMOLIVE WANT TO BROADEN THEIR DIVERSITY PUSH TO INCLUDE EMPLOYEES ABROAD COMPANIES ARE STARTING TO FIGURE OUT WHAT IT MIGHT MEAN ABROAD AND HOW YOU INTEGRATE THE DOMESTIC PROGRAM WITH THE INTERNATIONAL PERSPECTIVE SAYS BERNARDO FERDMAN ASSISTANT PROFESSOR OF PSYCHOLOGY AND LATIN AMERICAN AND CARIBBEAN STUDIES AT THE STATE UNIVERSITY OF NEW YORK AT ALBANY NYNEX IS TYPICAL THOUGH IT EMPLOYS 4500 PEOPLE ABROAD THE REGIONAL PHONE COMPANY GIVES ITS TWODAY DIVERSITY TRAINING PROGRAM ONLY TO INDIVIDUALS BASED IN THE US SO JOSEPH ANDERSON DIRECTOR OF MANAGING DIVERSITY WILL SPEND SEVERAL MONTHS THIS YEAR VISITING NYNEX OPERATIONS IN HONG KONG BELGIUM AND ELSEWHERE TO ASSESS THEIR NEED FOR DIVERSITY TRAINING WE ARE READY NOW TO MOVE DIVERSITY TRAINING OVERSEAS A NYNEX SPOKESMAN SAYS IT'S THE NEXT STEP IN SOME CASES MR ANDERSON MAY OFFER INFORMAL TRAINING ON THE SPOT HE ALSO WILL MAKE SURE FEMALE NYNEX EMPLOYEES AREN'T DISCRIMINATED AGAINST IN COUNTRIES WHERE WOMEN MAY NOT BE TREATED EQUALLY OUTSIDE THE OFFICE THE SPOKESMAN SAYS YET FOREIGN EMPLOYEES MAY RESENT THE IMPOSITION OF AN ALLAMERICAN CONCEPT WARNS JUDITH KATZ VICE PRESIDENT OF KALEEL JAMISON CONSULTING GROUP A CINCINNATI FIRM ADVISING DU PONT ON THIS ISSUE WORKFORCE DIVERSITY IS SEEN AS A US PROBLEM SHE SAYS AND IN MANY WAYS AS US IMPERIALISM WORKERS IN INDONESIA THE PHILIPPINES AND SOUTH KOREA WILL GET THE BIGGEST RAISES THIS YEAR ADJUSTED FOR INFLATION CONCLUDES CONSULTANTS WYATT CO IN AN 11COUNTRY STUDY THE REASON A SHORTAGE OF MANAGERS AND SUPERVISORS IN THOSE LANDS MOVING SYSTEMS NEWBURYPORT MASS INTRODUCES READY ASSIST A 24HOUR SERVICE AIMED LARGELY AT EXPATRIATES INDIVIDUALS ABROAD CAN CALL TO GET EMERGENCY CASH RECEIVE MEDICAL REFERRALS SEND EMERGENCY MESSAGES AND THE LIKE 9303120008 930312 THE AMERICAS NICARAGUAN POLS PLAY OUT I CLAUDIUS' AS THE PEOPLE SUFFER BY DAVID ASMAN LEON NICARAGUA THIS WEEK'S TAKEOVER OF THE NICARAGUAN EMBASSY IN COSTA RICA BY FORMER CONTRA REBELS IS YET ANOTHER SIGN THAT POPULAR FRUSTRATION WITH THE GOVERNMENT IN NICARAGUA HAS REACHED THE BREAKING POINT RESENTMENT AND OUTRAGE HAVE REPLACED THE HOPE THAT FOLLOWED VIOLETA CHAMORRO'S 1990 ELECTORAL DEFEAT OF THE SANDINISTAS NICARAGUANS COMPLAIN OF RAMPANT CORRUPTION FUELED BY HUNDREDS OF MILLIONS OF DOLLARS IN US AIDEMANATING PRIMARILY FROM THE OFFICE OF MRS CHAMORRO'S CHIEF AIDE AND SONINLAW ANTONIO LACAYO THEY ALSO COMPLAIN THAT SANDINISTA INFLUENCE CONTINUES TO DOMINATE THE POLITICAL AND ECONOMIC LANDSCAPE AND ALONG WITH THE CORRUPTION HAS VIRTUALLY DESTROYED THE ECONOMY WHILE EMBASSY TAKEOVERS DIFFER MARKEDLY FROM THE GROWING NUMBER OF PEACEFUL DEMONSTRATIONS AGAINST THE CHAMORRO GOVERNMENT THE COMPLAINTS ARE THE SAME IN LEON'S TOWN SQUARE DIRECTLY IN FRONT OF THE RUINS OF A CHURCH DESTROYED IN THE 1979 REVOLUTION 5000 UNITED NICARAGUAN OPPOSITION UNO DEMONSTRATORS GATHERED RECENTLY UNDER A BRUTAL MIDDAY SUN THE PROTESTERS' HAUNTINGLY FAMILIAR RALLY CRIES REFLECT WHAT THEY SEE AS YET ANOTHER REVOLUTION BETRAYED NO MORE CORRUPTION NO MORE REPRESSION NO MORE HUMBERTO ORTEGA NO MORE ANTONIO LACAYO THREE YEARS EARLIER SIMILAR UNO RALLIES GALVANIZED THE NATION AND PAVED THE WAY FOR MRS CHAMORRO'S STUNNING VICTORY AND THE HUMILIATION OF THE RULING SANDINISTAS AT TODAY'S' DEMONSTRATIONS ONE SEES MANY OF THE VETERANS OF THAT CAMPAIGN BUT WHERE THE LOOK ON THEIR FACES ONCE EXPRESSED SOLID DETERMINATION AND DEFIANCE THEY NOW REVEAL EXHAUSTION I'M TIRED SAYS ROGER GUEVARA A PAST PRESIDENT OF THE NICARAGUAN BAR ASSOCIATION WHO ONCE SPENT SIX MONTHS AS A POLITICAL PRISONER IN A SANDINISTA JAIL I'VE BEEN FIGHTING AGAINST REPRESSION AND CORRUPTION FOR 10 YEARS WITHOUT A BREAK AND IT'S HARD TO MAINTAIN THE STAMINA PARTICULARLY BECAUSE THERE ARE SO FEW POLITICAL PLAYERS WHO HAVE RETAINED THEIR CONVICTIONS ONCE IN POWER IN FACT THE STORY OF RECENT NICARAGUAN POLITICS RESEMBLES A LOWBUDGET VERSION OF I CLAUDIUS IN WHICH RULING ELITES MANY UNITED BY FAMILY TIES PLAY OUT THEIR POWER GAMES WITH LITTLE CONCERN FOR THE PRINCIPLES FOR WHICH THEY ONCE STOOD OR THE COUNTRYMEN OVER WHOM THEY LORD THE SCRIPT STARTS TOWARD THE END OF THE REIGN OF THE SANDINISTAS AFTER 10 YEARS OF STEALING MILLIONS OF DOLLARS REPRESSING DISSENT AND TURNING THE RICHEST COUNTRY IN THE REGION INTO THE POOREST THROUGH SOCIALIST ENGINEERING THE SANDINISTAS CONNED THEMSELVES INTO THINKING THAT THE PUBLIC WAS QUITE HAPPY EATING THE ENTRAILS OF THEIR FEASTS EVEN TODAY THE CHOICEST SPOT IN TOWN FOR GARBAGE PICKERS IS THE COLLECTION OF HALFEATEN IMPORTED DELICACIES FOUND OUTSIDE THE PALATIAL COMPOUND OF CONFISCATED HOUSES THAT FORMER PRESIDENT DANIEL ORTEGA CALLS HOME AFTER MR ORTEGA AND HIS STUNNED SUPPORTERS WERE SWEPT FROM OFFICE IN FEBRUARY 1990 DANIEL'S BROTHER ARMY CHIEF HUMBERTO BROKERED HIS SERVICES TO MRS CHAMORRO REALIZING THAT SHE SOON WOULD BE BLESSED BY US LARGESS TO DRIVE HIS POINT HOME DEMONSTRATIONS WERE STAGED BY WELLARMED SANDINISTA THUGS WHOM HUMBERTO'S SECURITY FORCES WERE BROUGHT IN TO CONTROL MRS CHAMORRO OR MORE CORRECTLY MR LACAYO WHO MAKES ALL THE DECISIONS FOR THE PRESIDENT AGREED TO THIS MARRIAGE OF CONVENIENCE MR LACAYO ALSO AGREED TO LET STAND SANDINISTA CONTROL OVER SEVERAL OTHER VITAL INSTITUTIONS INCLUDING THE JUDICIARY AND MOST OF THE STATERUN BANKS THROUGH WHICH THE BULK OF MORE THAN 700 MILLION IN US AID HAS FLOWED SINCE 1990 FINALLY MR LACAYO ACQUIESCED TO A SERIES OF QUESTIONABLE LAWS MADE UP BY THE SANDINISTA LEGISLATURE SHORTLY AFTER ITS DEFEAT THAT TRANSFERRED HUNDREDS OF MILLIONS OF DOLLARS IN GOVERNMENT PROPERTY AND GOODS TO SANDINISTA LOYALISTS THE UNODOMINATED CONGRESS STRENUOUSLY OBJECTED TO THE INCREASING WEALTH AND POWER OF THE SANDINISTAS SO MR LACAYO FORMED AN ALLIANCE WITH HIS POLITICALLY AMBITIOUS BROTHERINLAW CONGRESSMAN ALFREDO CESAR TO OVERRIDE CONGRESS'S OBJECTIONS IN JANUARY 1991 MR LACAYO ORCHESTRATED AN ALLIANCE BETWEEN THE MINORITY BLOC OF SANDINISTA CONGRESSMEN AND MR CESAR'S GROUP OF UNO CONGRESSMEN TO MAKE MR LACAYO PRESIDENT OF THE LEGISLATURE THIS ALLIANCE THEN PASSED A BUDGET THAT MAINTAINED THE SANDINISTA MILITARY'S HUGE SHARE 25 OF THE BUDGET GOES TO MR ORTEGA'S ARMY AND SECURITY FORCES ACCORDING TO MR CESAR AND ALLOWED THE SANDINISTAS TO KEEP WHAT THEY STOLE IN 1990 NICARAGUA'S CONTROLLER GENERAL LATER PRESENTED EVIDENCE CHARGING THAT SEVERAL UNO CONGRESSMEN WERE BRIBED IN EXCHANGE FOR THEIR VOTES BUT THE ALLIANCE OF THE AMBITIOUS BROTHERSINLAW WAS NOT TO LAST IN 1991 AND '92 ALFREDO BEGAN MOVING TO THE RIGHT BECAUSE HE SAW THAT I CONTROLLED THE MIDDLE AND THE ORTEGAS CONTROLLED THE LEFT EXPLAINS MR LACAYO FOR HIS PART MR CESAR CLAIMS THAT HE BEGAN MOVING AWAY FROM MR LACAYO BECAUSE OF GROWING GOVERNMENT CORRUPTION FOR WHICH HE PROVIDES MUCH CIRCUMSTANTIAL EVIDENCE WHATEVER THE TRUTH MR LACAYO PUT TOGETHER A NEW SANDINISTAUNO ALLIANCE TO OVERRIDE MR CESAR AGAIN CHARGES WERE MADE THAT THE UNOCROSSOVER CONGRESSMEN HAD BEEN BRIBED BY MR LACAYO ON JAN 5 ARMED GUARDS PREVENTED MR CESAR FROM ENTERING CONGRESS AND FOUR DAYS LATER A NEW CONGRESSIONAL LEADERSHIP WAS FORMED SOON MEASURES THAT HAD BEEN THREATENED BY MR CESAR'S UNO BLOC WERE QUICKLY PASSED BY THE NEW CONGRESSIONAL LEADERSHIP INCLUDING A 20 CURRENCY DEVALUATION THE REPLACEMENT OF THE CONTROLLER GENERAL WHO HAD UNCOVERED EVIDENCE OF CORRUPTION AND AUTHORIZING THE GOVERNMENT TO SPEND MONEY WITH NO BUDGET WHAT HAPPENED HERE WAS A COUP D'ETAT SAYS MR CESAR HOW CAN THE US CRITICIZE WHAT FUJIMORI DID IN PERU WHILE CONTINUING TO GIVE MILLIONS OF DOLLARS TO THE LEADERS OF OUR OWN COUP IS IT ANY WONDER THAT NICARAGUANS ARE TURNED OFF BY POLITICS ASKS OPHTHALMOLOGIST EMILIO ALVAREZ WHO EARNED HIS STRIPES FIGHTING ANASTASIO SOMOZA THE SANDINISTAS AND NOW THE CHAMORRO GOVERNMENT THERE ARE CERTAINLY SOME GOOD PEOPLE TO BE FOUND IN GOVERNMENT LIKE FOREIGN MINISTER ERNESTO LEAL AND EDUCATION MINISTER HUMBERTO BELLI BUT MOST OF THE DECENT PEOPLE HAVE LEFT THE BOTTOM LINE IS THAT NICARAGUA TODAY IS RUN BY TWO PEOPLE ANTONIO LACAYO AND HUMBERTO ORTEGA WHO WERE NEVER ELECTED TO ANYTHING IT'S TIME FOR THE NICARAGUAN PEOPLE TO TAKE BACK WHAT THEY WON AT THE POLLS AND IT'S TIME FOR THE US TO STOP PROPPING UP A GOVERNMENT THAT NO ONE SUPPORTS MR ASMAN EDITS THE AMERICAS COLUMN ALFREDO CESAR WAS PRESIDENT OF THE NICARAGUAN LEGISLATURE IN 1991 AND 1992 THIS INFORMATION WAS MISSTATED IN FRIDAY'S AMERICAS COLUMN NICARAGUAN POLS PLAY OUT I CLAUDIUS' AS THE PEOPLE SUFFER 9303120007 930312 ECONOMY OPEC SEEMS TO HAVE CUT OIL PRODUCTION SHARP REDUCTION IN OUTPUT DETECTED IN EARLY MARCH SUGGESTS PRICES MAY RISE BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES HAS CUT OIL OUTPUT SHARPLY SUGGESTING THAT PRICES EVENTUALLY MAY RISE ACCORDING TO OUTSIDE MONITORS OF OPEC OUTPUT PRELIMINARY INDICATIONS SUGGEST THAT PRODUCTION THIS MONTH ALREADY MAY BE DOWN MORE THAN THE OIL MINISTERS PLEDGED IN THEIR FEBRUARY AGREEMENT INTENDED TO SUPPORT OIL PRICES GENEVABASED PETROLOGISTICS LTD WHICH USES TANKER TRACKING AND OTHER METHODS TO MEASURE OPEC'S VOLUMES HAS AN INITIAL ESTIMATE OF 234 MILLION BARRELS A DAY FOR OIL SALES IN THE FIRST WEEK OF MARCH THAT IS DOWN A SURPRISING TWO MILLION BARRELS A DAY FROM FEBRUARY OUTPUT ESTIMATED AT 254 MILLION BARRELS A DAY BY BOTH PETROLOGISTICS AND THE PARISBASED INTERNATIONAL ENERGY AGENCY IT IS VERY EARLY TO MAKE MARCH ESTIMATES CONRAD GERBER PRESIDENT OF PETROLOGISTICS SAID BUT FROM WHAT I'VE SEEN THERE IS GOING TO BE A REDUCTION FOR THE MONTH OF AT LEAST ONE MILLION BARRELS A DAY FROM FEBRUARY IT IS HIGHLY UNLIKELY THAT THE MOMENTUM OF THE OPEC PRODUCTION CUTBACKS MONITORED SO FAR BY PETROLOGISTICS WILL HOLD FOR ALL OF MARCH MUCH LESS FOR THE ENTIRE SECOND QUARTER BUT A REDUCTION OF ONEHALF THAT SIZE OR ONE MILLION BARRELS A DAY AS PREDICTED BY MR GERBER FOR MARCH COULD PROP UP OIL PRICES DURING THE APPROACHING SEASONALLY SLACK DEMAND PERIOD YESTERDAY PRICES FELL AGAIN HOWEVER IN WHAT TRADERS DESCRIBED AS A TECHNICALLY DRIVEN SELLOFF IN WORLD OIL MARKETS ON THE NEW YORK MERCANTILE EXCHANGE LIGHT LOWSULFUR CRUDE OIL FOR APRIL DELIVERY SETTLED 26 CENTS LOWER AT 2013 A BARREL OIL MARKETS STILL ARE GLUTTED FROM THE HIGH OPEC PRODUCTION AND SLUGGISH DEMAND OF THE FIRST TWO MONTHS OF THIS YEAR ANALYSTS SAID SOME PREDICT THAT EVEN AS EVIDENCE OF THE OPEC CUTBACKS BECOMES CLEAR THE FUTURES PRICE OF THE APRIL CRUDE COULD YET DROP BELOW THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 THE RESULT OF THE OPEC MEETING AND STATEMENTS BY THE OPEC PRODUCERS HAVE FUELED A LOT OF THE PRICE STRENGTH IN RECENT WEEKS BUT SUPPLY AND DEMAND FUNDAMENTALS HAVE BEEN REASSERTED SAID SARAH EMERSON MARKET ANALYST WITH ENERGY SECURITY ANALYSIS THE WASHINGTONBASED FIRM WHICH MONITORS OIL SUPPLIES WORLDWIDE ALSO COMES UP WITH EVIDENCE THAT OPEC PRODUCTION IS DOWN THIS MONTH FROM THE 252 MILLION BARRELS A DAY THAT ENERGY SECURITY ANALYSIS HAD TABULATED FOR FEBRUARY OUTPUT I DON'T FEEL COMFORTABLE IN ESTIMATING MARCH PRODUCTION YET BUT IT COULD BE ANYWHERE FROM 238 TO 245 MILLION A DAY MS EMERSON SAID AT THEIR FEBRUARY MEETING OPEC'S OIL MINISTERS AGREED TO REDUCE THEIR PRODUCTION CEILING FOR THE FOUR MONTHS BEGINNING MARCH 1 BY ONE MILLION BARRELS A DAY TO 236 MILLION A DAY BECAUSE PRODUCTION WAS SO MUCH HIGHER IN JANUARY AND FEBRUARY THAN THE CEILING OF 246 MILLION A DAY THEN IN EFFECT TOTAL OUTPUT CUTS WOULD HAVE TO EXCEED ONE MILLION BARRELS A DAY FOR OPEC TO REACH ITS NEW CEILING ACCORDING TO GENERAL ESTIMATES OF THE ANTICIPATED DEMAND FOR ITS OIL IN THE SECOND QUARTER THAT MAY NOT BE NECESSARY HOWEVER INDUSTRY PROJECTIONS GENERALLY PLACE DEMAND FOR OPEC OIL AT AROUND 24 MILLION BARRELS A DAY FOR THE SECOND QUARTER ALTHOUGH IT DOESN'T PREDICT DEMAND FOR OPEC OIL THAT WOULD BE THE IMPLIED VOLUMES LEFT FOR THE EXPORTERS' GROUP UNDER THE INTERNATIONAL ENERGY AGENCY'S LATEST PROJECTIONS OF WORLD OIL DEMAND IF A NORMAL SEASONAL BUILDUP OF WORLD OIL INVENTORIES IN THE SECOND QUARTER IS ASSUMED THE DEMAND FOR OPEC OIL COULD BE EVEN HIGHER INVENTORY INCREASES OF 700000 BARRELS A DAY SUCH AS THOSE OF THE SECOND THREE MONTHS OF 1992 WOULD SUGGEST A CALL ON OPEC OIL OF 243 MILLION BARRELS A DAY REPORTS THE CENTRE FOR GLOBAL ENERGY STUDIES AND THE PRICE OF OIL OUGHT TO STRENGTHEN CONSIDERABLY AS A RESULT BUT THE LONDONBASED CENTRE ADDS THAT THERE ARE NO COMPELLING REASONS THIS TIME FOR SUCH INVENTORY INCREASES IN VIEW OF THE EXPECTED LEVEL OF CONSUMPTION WORLDWIDE AND THE ACTUAL LEVEL OF STOCKS AVAILABLE TO SERVICE THIS DEMAND THE CENTRE SEES DEMAND FOR OPEC OIL AVERAGING 237 MILLION BARRELS A DAY ONLY MARGINALLY HIGHER THAN THE AGREEDUPON CEILING OF 236 MILLION BARRELS A DAY 9303120006 930312 INTERNATIONAL G7 MEMBERS AGREE TO DISCUSS AID TO RUSSIA BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODDED BY PRESIDENT CLINTON THE GROUP OF SEVEN INDUSTRIALIZED NATIONS AGREED TO USE THIS WEEKEND'S MEETING OF SENIOR OFFICIALS TO DISCUSS RUSSIAN AID INCREASINGLY CONCERNED ABOUT BORIS YELTSIN'S POLITICAL STRUGGLES MR CLINTON SENT A LETTER TUESDAY TO THE G7 CHIEFS OF STATE URGING THEM TO SEEK NEW WAYS TO BACK MR YELTSIN'S REFORM EFFORTS CLINTON ADMINISTRATION OFFICIALS SAID THE PRESIDENT SUGGESTED THAT THIS WEEKEND'S LONGPLANNED MEETING IN HONG KONG OF G7 OFFICIALS BE TURNED INTO A SPECIAL SESSION ON RUSSIAN AID AND THAT A TOP RUSSIAN OFFICIAL BE INVITED TO ATTEND DESPITE RECENT WARNINGS THAT MR YELTSIN MIGHT HAVE TO DISSOLVE PARLIAMENT AND ASSUME EMERGENCY POWERS US OFFICIALS SAID THEY WILL STAND BY HIM OUR POSITION REMAINS THAT MR YELTSIN IS RUSSIA'S ONLY DEMOCRATICALLY ELECTED LEADER AND THE BEST CHANCE FOR REFORM THERE A SENIOR US OFFICIAL SAID IN WHAT IS BECOMING A DAILY EVENT PRESIDENT CLINTON ENDORSED MR YELTSIN'S REFORM EFFORTS SAYING HE INTENDS TO BE SUPPORTIVE OF THAT PROCESS AND TO BE SUPPORTIVE OF HIM WHILE HE SERVES AS PRESIDENT OF RUSSIA WHEN ASKED IF HE EXPECTS MR YELTSIN TO SURVIVE HIS CURRENT STRUGGLES THE PRESIDENT RESPONDED I'M NOT A SEER I DON'T KNOW WHAT'S GOING TO HAPPEN TO HIM OR TO ME TOMORROW US OFFICIALS HOPE THIS WEEKEND'S MEETING WILL BE THE FIRST IN A SERIES OF SENIORLEVEL MEETINGS ON RUSSIAN AID LEADING UP TO THE JULY G7 SUMMIT IN TOKYO RUSSIAN DEPUTY PRIME MINISTER BORIS FYODOROV IS EXPECTED TO ATTEND THE HONG KONG SESSION THE MEETING IS ALSO EXPECTED TO PRODUCE A STRONG IF DELIBERATELY NONSPECIFIC DECLARATION OF SUPPORT FOR MR YELTSIN AND HIS ECONOMIC PROGRAM THIS IS NOT A MEETING TO ANNOUNCE A 50 BILLION ASSISTANCE PROGRAM ITS INTENTION IS TO GET THE ISSUE OF RUSSIAN AID ON THE TABLE AND TO START WORKING ON IT A SENIOR US OFFICIAL SAID WITH A CLINTONYELTSIN SUMMIT MEETING JUST THREE WEEKS AWAY US OFFICIALS ARE FEELING PARTICULAR PRESSURE TO COME UP WITH WAYS TO HELP THE RUSSIAN LEADER THE CLINTON ADMINISTRATION PLANS TO INCREASE BILATERAL AID TO ALL THE FORMER SOVIET REPUBLICS TO 700 MILLION NEXT YEAR BUT OFFICIALS ADMIT THAT MUCH MORE NEEDS TO BE DONE AND ARE TRYING TO RALLY A MUCH LARGER INTERNATIONAL RELIEF EFFORT EARLIER THIS WEEK PRESIDENT CLINTON APPEARED TO ENDORSE THE IDEA OF AN EARLY G7 SUMMIT SPECIFICALLY DEVOTED TO RUSSIAN AID PRIVATELY HOWEVER US OFFICIALS SAID THAT MORE WORK COULD BE DONE WITH LESS POLITICAL STRIFE IN A SERIES OF MEETINGS BELOW THE SUMMIT LEVEL LEADING UP TO THE JULY SUMMIT WHATEVER THE FORMAT US OFFICIALS SAID THERE IS A FULL AGENDA TO BE ADDRESSED RUSSIA'S 80 BILLION FOREIGN DEBT NEEDS TO BE RESCHEDULED INDIVIDUAL COUNTRIES NEED TO REVIEW THEIR CURRENT AID AND CREDIT PROGRAMS AND DECIDE HOW MUCH MORE THEY CAN GIVE AND THE ENTIRE QUESTION OF MULTILATERAL AID IS GOING NOWHERE RIGHT NOW SAID ANOTHER SENIOR US OFFICIAL RUSSIA HAS SO FAR BEEN UNABLE TO MEET STRICT INTERNATIONAL MONETARY FUND CRITERIA FOR LENDING AS A RESULT 3 BILLION IN PROMISED LOANS AND A 6 BILLION CURRENCYSTABILIZATION FUND HAVE YET TO BE RELEASED AN OFFICIAL AT THE US EXPORTIMPORT BANK SAID THAT AFTER MONTHS OF NEGOTIATIONS THE US AND RUSSIA WERE CLOSE TO AN AGREEMENT ON A 2 BILLION PACKAGE OF LOANS AND LOAN GUARANTEES TO HELP PROMOTE US INVESTMENT IN RUSSIA'S OIL AND GAS INDUSTRY THE G7 IS MADE UP OF THE US JAPAN GERMANY BRITAIN FRANCE ITALY AND CANADA 9303120005 930312 LEISURE & ARTS ON SPORTS REPACKAGING BASEBALL BY FREDERICK C KLEIN THE FELLOW ON THE RADIO SPORTSTALK SHOW WAS IRATE AS A PURIST HE THUNDERED I HATE THE IDEA THE IDEA THE GUY HATED WAS THE ONE THAT WOULD EXPAND THE PLAYOFF FIELD IN MAJOR LEAGUE BASEBALL TO EIGHT TEAMS FROM FOUR BEGINNING A FEW SEASONS HENCE BUT IT COULD HAVE BEEN ANY OF SEVERAL PROPOSITIONS THAT HAVE BEEN MAKING THE ROUNDS OF THE ERSTWHILE NATIONAL PASTIME THESE ALSO INCLUDE INTERLEAGUE PLAY BASEBALL WITHOUT ITS LONGSTANDING ANTITRUST EXEMPTION AND HORROR OF HORRORS BASEBALL WITHOUT A COMMISSIONER AS A PURIST MYSELF NONE OF THOSE POSSIBILITIES BOTHER ME IN THE SLIGHTEST IN FACT I'M SURPRISED IT TOOK SO LONG TO GET THE POWERSTHATBE TO TAKE THEM AS SERIOUSLY AS THEY NOW ARE DOING THE FIRST POINT THAT NEEDS TO BE MADE HERE I THINK IS THAT NONE OF THE ABOVE HAVE ANYTHING TO DO WITH BASEBALL WHICH IS TO SAY THE GAME ON THE FIELD EXCEPT FOR THE AMERICAN LEAGUE'S IMPOSITION OF THE DESIGNATEDHITTER RULE 20 YEARS AGO THAT HAS REMAINED THE SAME DURING THE MEMORY OF LIVING MAN AND WHILE AS A PURIST I DISLIKE THE DH I'VE COME TO THE CONCLUSION THAT ITS ADOPTION EVERYWHERE BUT IN THE NATIONAL LEAGUE MEANS THAT IN THE INTEREST OF UNIFORMITY AND THE ABOLITION OF THE FARCE THAT IS THE NATIONAL LEAGUE PITCHER AT BAT THE NL SHOULD SURRENDER WHAT WE'RE TALKING ABOUT IS ADMINISTRATION PACKAGING REALLY AN AREA ABOUT WHICH ASSERTIONS OF PURISM MAKE LITTLE SENSE THE ONLY PROPER PURIST POSITION IN REGARD TO LEAGUE MAKEUP FOR EXAMPLE IS A RETURN TO THE ORIGINAL NATIONAL LEAGUE OF 1876 WHICH CONSISTED OF TEAMS FROM CHICAGO ST LOUIS HARTFORD BOSTON LOUISVILLE NEW YORK PHILADELPHIA AND CINCINNATI BY THAT LIGHT THE AMERICAN LEAGUE BEGUN IN 1901 IS AN INTERLOPER AS IS THE WORLD SERIES 1903 THE FIRST POSTSEASON PLAYOFF THE PLAYOFF QUESTION THEN BECOMES NOT WHETHER BUT HOW MUCH AND A THREEROUND EIGHTTEAM CHAMPIONSHIP TOURNAMENT AMONG THE PRESENT 28 CLUBS DIVIDED INTO THREE DIVISIONS PER LEAGUE INSTEAD OF THE PRESENT TWO ACCORDING TO THE CURRENT TRIAL BALLOON DOESN'T SEEM EXCESSIVE IT WOULD PROLONG THE SUSPENSE OF THE REGULAR SEASON FOR FANS IN A NUMBER OF CITIES AND COMBINED WITH A REDUCTION OF THE REGULAR SCHEDULE WOULDN'T MAKE AN ALREADY LONG SEASON LONGER A REGULARCAMPAIGN CUT TO THE OLDDAYS' STANDARD OF 154 GAMES FROM THE PRESENT 162 MIGHT APPEAL TO TRADITIONALISTS DON'T YOU THINK INTERLEAGUE PLAY IS A SUREFIRE FAN PLEASER SO OBVIOUS THAT ONLY BASEBALL'S MYOPIC MOGULS COULD HAVE AVOIDED IT FOR THIS LONG THERE ARE NO BIGGER RIVALS THAN THE CUBS AND WHITE SOX OF CHICAGO FOR INSTANCE BUT THEY HAVE NOT MET IN A GAME THAT COUNTED SINCE THE WORLD SERIES OF 1906 AND THE WAY THINGS HAVE BEEN GOING IT COULD BE ANOTHER 87 YEARS BEFORE THAT SITUATION ARISES AGAIN IT SHOULD NOT MATTER THAT THE MAIN MOTIVE BEHIND THIS CHANGE WOULD BE TO SWEETEN THE DEAL THAT TEAM OWNERS COULD OFFER THE NATIONAL TELEVISION NETWORKS WHEN NEW CONTRACTS ARE NEGOTIATED AFTER THIS SEASON EVEN STOPPED CLOCKS BASEBALL AND THE NETWORKS ARE RIGHT TWICE A DAY THAT BASEBALL'S FEDERAL ANTITRUST EXEMPTION EXCITES MOSTLY LAWYERS IS IN ITSELF REASON ENOUGH TO DO AWAY WITH IT ANOTHER BETTER REASON IS THAT IT'S SILLY IT STEMS FROM A 1922 US SUPREME COURT DECISION WRITTEN BY JUSTICE OLIVER WENDELL HOLMES WHICH HELD THAT THE ACTIVITIES OF MAJOR LEAGUE BASEBALL DID NOT COME UNDER THE PURVIEW OF LAWS REGULATING INTERSTATE COMMERCE BECAUSE THEY WERE NEITHER INTERSTATE NOR COMMERCE THAT WAS NOT THE HIGH COURT'S OR HOLMES'S FINEST HOUR IT'S FURTHER ASSERTED THAT WITH THE PASSING OF THE YEARS THE ANTITRUST EXEMPTION HAS LOST ITS FORCE AT ONE TIME IT PROTECTED THE OWNERS IN THEIR DEALINGS WITH THE PLAYERS BUT THE ADVENT OF THE PLAYERS' UNION BROUGHT THAT RELATIONSHIP UNDER OTHER FEDERAL LAWS SO THE POINT HAS BECOME MOOT NOTES LIONEL S SOBEL A PROFESSOR AT LOYOLA LAW SCHOOL IN LOS ANGELES WHO HAS WRITTEN ABOUT SPORTS LAW HE ADDS THE ONLY IMPORTANT RELATIONSHIP IT STILL AFFECTS IS BETWEEN THE TEAMS AND THE CITIES IN WHICH THEY OPERATE OR MIGHT LIKE TO OPERATE AND OUR OTHER PROFESSIONAL SPORTS LEAGUES HAVE BEEN ABLE TO MANAGE THAT WITHOUT AN EXEMPTION BUT IF YANKING THE EXEMPTION IS A GOOD IDEA A FACTOR BEHIND ITS CONSIDERATION SOME CONGRESSMEN'S UNHAPPINESS OVER THE ABRUPT FIRING LAST FALL OF FAY VINCENT AS THE GAME'S COMMISSIONER COULD BE MISPLACED IF A LOT OF PEOPLE AREN'T ASKING WHETHER THE GAME NEEDS A COMMISSIONER THEY SHOULD SIX MONTHS HAVE PASSED SINCE VINCENT WAS AXED AND BASEBALL HAS NOT CRUMBLED THERE WAS NO SPRINGTRAINING LOCKOUT AS SOME FEARED AND THE MAJOR BETWEENSEASONS FLAP THE MARGE SCHOTT FOOTINMOUTH CASE WAS HANDLED ABOUT AS WELL BY THE CONVENED OWNERS A SMALL FINE AND ONESEASON SUSPENSION WERE LEVIED AGAINST THE CINCINNATI REDS BOSS AS IT WOULD HAVE BEEN BY ANY COMMISH WHATEVER HAS BEEN THE PERCEPTION THE BASEBALL COMMISSIONER ALWAYS HAS BEEN THE OWNERS' MAN AND AT THE LEAST THE PROLONGED ABSENCE OF ONE ALLOWS THE PUBLIC TO PLACE CREDIT OR BLAME FOR THE GAME'S COURSE WHERE IT BELONGS MOREOVER THERE'S EVIDENCE THAT SANS COMMISSIONER THE OWNERS ARE SPEAKING TO EACH OTHER IN WAYS THEY HADN'T PREVIOUSLY THE MOVES TO EXPAND THE PLAYOFFS AND PERMIT INTERLEAGUE PLAY COME UNDER THIS HEADING SO DOES THEIR DECISION TO OPEN THEIR BOOKS TO ONE ANOTHER AS A PRECURSOR TO THE SORT OF INCREASED REVENUE SHARING THAT COULD ADDRESS CONCERNS ABOUT COMPETITIVE BALANCE OVER THE LONG TERM IN AGREEING TO DISCUSS REVENUE SHARING THE OWNERS WANT TO SET THE STAGE FOR SOMETHING THEY'D REALLY LIKE A NEW CONTRACT WITH THE PLAYERS' UNION THAT WOULD INCLUDE A SALARY CAP THE PLAYERS' RESPONSE TO THIS SO FAR HAS NOT BEEN ENCOURAGING BUT UNIONS TAKE A GREATER INTEREST IN DOLLARS THAN IN PRINCIPLE AND ONE MUST BELIEVE THAT THIS ONE COULD BE PERSUADED TO DON A CAP IF IT'S SNAZZY ENOUGH AS SAMUEL GOMPERS ANSWERED WHEN ASKED WHAT LABOR REALLY WANTED MORE THAT'S A PURIST'S VIEW IF THERE EVER WAS ONE 9303120004 930312 POLITICS & POLICY ARTHUR LEVITT IS FRONTRUNNER TO HEAD SEC FORMER CHAIRMAN OF AMEX APPARENTLY EDGED OUT CONSUELA WASHINGTON BY CHRISTI HARLAN AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FORMER AMERICAN STOCK EXCHANGE CHAIRMAN ARTHUR LEVITT JR HAS EMERGED AS THE FRONTRUNNER TO HEAD THE SECURITIES AND EXCHANGE COMMISSION ACCORDING TO CLINTON ADMINISTRATION OFFICIALS MR LEVITT HEADS NEW YORKBASED LEVITT MEDIA CO PUBLISHER OF THE TWICEWEEKLY ROLL CALL A CAPITOL HILL NEWSPAPER HE BOUGHT TO ESTABLISH A PRESENCE HERE HE APPARENTLY HAS CURRIED MORE FAVOR AMONG WHITE HOUSE ADVISERS THAN HAS CONSUELA WASHINGTON CHIEF COUNSEL TO THE HOUSE COMMITTEE ON ENERGY AND COMMERCE MS WASHINGTON WHO HAS BEEN UNDER CONSIDERATION FOR THE TOP SEC JOB SINCE SHORTLY AFTER PRESIDENT CLINTON'S ELECTION IS GENERALLY WELL REGARDED ON WALL STREET NEVERTHELESS SHE HAS ALIENATED ENOUGH PEOPLE IN HER WORK THAT SHE MAY INSTEAD BE OFFERED ONE OF THE FOUR COMMISSIONERS' SEATS AT THE SEC FRIENDS OF MS WASHINGTON SAID THEY WOULDN'T EXPECT HER TO ACCEPT APPOINTMENT AS AN SEC COMMISSIONER A HIGHERPROFILE BUT LESS INFLUENTIAL POST THAN HER CURRENT JOB AS A CLOSE ADVISER TO REP JOHN DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE THE MICHIGAN DEMOCRAT ALSO HEADS THE OVERSIGHT AND INVESTIGATIONS SUBCOMMITTEE WHICH HAS CALLED MORE THAN ONE SEC CHAIRMAN TO ACCOUNT FOR AGENCY ACTIVITIES IN RECENT YEARS BY DENYING MR DINGELL'S FAVORED CANDIDATE THE TOP SEC POST THE ADMINISTRATION RISKS ALIENATING A POWERFUL CONGRESSMAN BUT IT WASN'T CLEAR LATE YESTERDAY WHETHER MR DINGELL HAD BEEN TOLD OF THE ADMINISTRATION'S PREFERENCE WHICH WAS FIRST REPORTED IN THE WASHINGTON POST THE CONGRESSMAN ISN'T EXPECTED TO SEEK TO BLOCK THE APPOINTMENT OF MR LEVITT MR LEVITT HAS LONG HANKERED FOR AN ADMINISTRATION JOB AND HAS BEEN CAREFUL TO MAKE FRIENDS HERE THOUGH HIS BUSINESS INTERESTS WERE FIRMLY ROOTED IN NEW YORK IN 1981 HE FOUNDED THE AMERICAN BUSINESS CONFERENCE A WASHINGTONBASED TRADE GROUP REPRESENTING FASTGROWING BUT SMALL CORPORATIONS MOST OF WHICH WERE LISTED ON THE AMEX HE STEPPED DOWN AS AMEX CHAIRMAN IN MAY 1989 AFTER 11 YEARS TO DEVOTE MORE TIME TO HIS PUBLISHING INTERESTS AND WAS SUCCEEDED BY FORMER OKLAHOMA REP JAMES JONES ONCE CHAIRMAN OF THE HOUSE BUDGET COMMITTEE PRIOR TO JOINING THE AMEX MR LEVITT SERVED AS PRESIDENT OF SHEARSON LEHMAN BROTHERS INC'S PREDECESSOR FIRM REACHED AT HIS NEW YORK OFFICE MR LEVITT SAID HE BELIEVES IT'S INAPPROPRIATE TO COMMENT ON JOBS YOU HAVEN'T BEEN OFFERED MS WASHINGTON IS DECLINING TO COMMENT UNTIL THE SEC CHAIRMANSHIP ISSUE IS RESOLVED SAID A SPOKESMAN FOR THE ENERGY AND COMMERCE COMMITTEE WHITE HOUSE OFFICIALS SAID THEY WERE CONCERNED THAT MS WASHINGTON A HARVARDTRAINED LAWYER AND FORMER SEC STAFF MEMBER LACKED MANAGEMENT SKILLS AND EXPERIENCE IN INTERNATIONAL SECURITIES ISSUES THEY ALSO WERE CONCERNED ABOUT HER ABILITY TO BUILD A CONSENSUS AT THE SEC THOUGH CURRENT CHAIRMAN RICHARD BREEDEN'S MANAGEMENT STYLE HAS OFTEN CHAFED COMMISSIONERS AND STAFF ALIKE TENNESSEE SECURITIES LAWYER JAMES CHEEK III WHO WAS ONCE CONSIDERED A POSSIBLE CONTENDER FOR THE TOP SEC JOB IS APPARENTLY NO LONGER IN THE RUNNING ADMINISTRATION OFFICIALS DIDN'T GIVE ANY INDICATION OF WHEN A FORMAL SELECTION WILL BE MADE AND MAY HAVE ASKED MR BREEDEN TO STAY PAST HIS PLANNED APRIL 15 DEPARTURE DATE AN SEC SPOKESMAN SAID HE WOULDN'T COMMENT ON WHETHER SUCH A REQUEST HAD BEEN MADE MR BREEDEN WAS OUT OF THE COUNTRY AND COULDN'T BE REACHED MR BREEDEN PREVIOUSLY INDICATED THAT HE WOULD BE WILLING TO STAY ON A COUPLE OF WEEKS OR SO TO ACCOMMODATE THE CONFIRMATION OF HIS SUCCESSOR BUT HIS WILLINGNESS TO ACCOMMODATE A SLOWMOVING ADMINISTRATION MAY BE WANING AT A PRACTISING LAW INSTITUTE CONFERENCE LAST WEEK MR BREEDEN SAID HE IS RATHER JOYOUSLY LOOKING FORWARD TO RESUMING A PRIVATE PRACTICE 9303120003 930312 LEISURE & ARTS BOOKSHELF THE GRISHAM FORMULA REVISITED BY TOM NOLAN JOHN GRISHAM ESTABLISHED A FORMULA FOR GENERATING SUSPENSE IN HIS FIRST RUNAWAY BESTSELLER THE FIRM AN INNOCENT CITIZEN IS CAUGHT BETWEEN THE OPPOSING AND UNCOMPROMISING FORCES OF ORGANIZED CRIME AND FEDERAL LAW ENFORCEMENT THE PROTAGONIST DEFIES BOTH CAMPS TO FASHION A UNIQUE WAY OUT OF THE DILEMMA MR GRISHAM HEWS TO THE FORMULA IN HIS NEW NOVEL THE CLIENT DOUBLEDAY 422 PAGES 2350 HERE THE INNOCENT CONFRONTED WITH UNAPPEALING OPTIONS IS MARK SWAY AN 11YEAROLD MEMPHIS BOY WHO IS PRESENT WHEN MOB LAWYER JEROME CLIFFORD COMMITS SUICIDE CLIFFORD'S HOTTEST CLIENT A NEW ORLEANS HOOD KNOWN AS BARRY THE BLADE MULDANNO HAS BEEN INDICTED FOR THE MURDER OF A SENATOR ALTHOUGH THE APPARENT VICTIM'S BODY HAS NOT YET BEEN FOUND CLIFFORD KNOWS THE LOCATION OF THE CORPSE AND REVEALS THAT INFORMATION TO YOUNG SWAY BEFORE KILLING HIMSELF LOCAL AND FEDERAL LAW ENFORCEMENT OFFICIALS WANT SWAY TO TELL WHAT HE KNOWS BUT THE MOBSTER'S MINIONS WARN HIM NOT TO AFRAID TO TALK LEST HE JEOPARDIZE THE LIVES OF HIS FAMILY AND HIMSELF SWAY ALL ON HIS OWN GETS HIMSELF AN ATTORNEY RETAINING FOR THE SUM OF 1 THE SERVICES OF 52YEAROLD REGGIE LOVE A SHREWD AND CAPABLE ADVOCATE SPECIALIZING IN PROTECTING CHILDREN'S RIGHTS LOVE HAS HER HANDS FULL LOOKING OUT FOR THIS URCHIN AMONG THOSE ARRAYED AGAINST SWAY ARE A SANCTIMONIOUS PUBLICITYHUNGRY US ATTORNEY AND A GAGGLE OF DETERMINED FBI AGENTS THE TOUGH FOURTHYEAR LAWYER SOON HAS THEM ALL TIED IN KNOTS THOUGH INCLUDING THE FBI THE FIBBIES AS THE GANGSTERS CALL THEM OR THOSE CLOWNS IN THE WORDS OF MARK SWAY A GREAT DEAL OF DISBELIEF MUST BE SUSPENDED IN ORDER FOR THIS PLOT TO UNFOLD DOES IT MAKE ANY SORT OF SENSE FOR THE MOBSTERS TO WARN THIS BOY TO KEEP QUIET WOULDN'T THEY PREFER TO ELIMINATE THE POTENTIAL WITNESS OUTRIGHT TOO MUCH HEAT WOULD BE GENERATED WERE THEY TO COMMIT SUCH AN OUTRAGEOUS CRIME ONE HOOD SAYS MORE HEAT THAN FOR THE MURDER OF A SENATOR AND HOW DOES KEEPING SILENT PROTECT SWAY AT ALL SURELY TELLING WHAT HE KNOWS IS SWAY'S ONLY WAY TO SAFETY WHY WOULD THE BAD GUYS COME AFTER HIM ONCE THE SECRET WAS OUT AND IF THE VILLAINOUS MULDANNO CAN ELUDE FBI SURVEILLANCE IN ORDER TO HIRE PEOPLE TO HARASS AND THREATEN THE CHILDWITNESS AND HIS LAWYER COULDN'T HE JUST AS EASILY PERSUADE SOME CRONIES TO MOVE THE CORPSE HE'S SO WORRIED WILL BE FOUND EVENTUALLY MULDANNO DOES JUST THAT BUT ONLY IN ORDER TO SET UP A CONTRIVED SLAMDUNK SEQUENCE IN WHICH SWAY AND LOVE OUTWIT A BUNCH EVEN CLUMSIER THAN THE GANG THAT COULDN'T SHOOT STRAIGHT JUST AS AGGRAVATING AS THESE IMPLAUSIBILITIES IS THE PERSONALITY OF THE BOOK'S HERO A TOT WHO IS ALTERNATELY SMUG PATRONIZING AND WHINY PROBABLY THE MOST OBNOXIOUS CHILD IN AMERICAN FICTION SINCE THE LITTLE TERROR IN O HENRY'S THE RANSOM OF RED CHIEF BY MIDPOINT OF THE CLIENT THIS READER FOUND HIMSELF ROOTING FOR THOSE CLOWNS AURELIO ZEN THE ITALIAN POLICE DETECTIVE FEATURED IN THE MYSTERY NOVELS OF MICHAEL DIBDIN IS SOMETIMES MISTAKEN FOR A CLOWNISH TYPE ONE STYLISH CHARACTER IN CABAL PERFECT CRIME/DOUBLEDAY 241 PAGES 1850 SEES THE CRIMINALPOL INVESTIGATOR AS A DOWDY CREEP WHOSE SUITS LOOKED AS THOUGH THEY WERE MADE BY HIS MOTHER A MORE CAREFUL OBSERVER THOUGH FINDS THE CRAFTY ZEN A GAUNT IMPOSING FIGURE WITH A GAZE THAT HOVERS AMBIGUOUSLY BETWEEN MENACE AND MOCKERY AMBIGUITY IS ESSENTIAL TO ZEN WHOSE OFFICIAL DUTIES ARE COMPLICATED BY TREACHEROUS DEPARTMENTAL AND POLITICAL INTRIGUES THINGS ARE EVEN MORE HAZARDOUS THAN USUAL WHEN ZEN IS CALLED TO THE VATICAN TO CONSULT ON THE CASE OF AN ARISTOCRAT WHO FELL TO HIS DEATH INSIDE THE GREAT BASILICA OF ST PETER'S VATICAN OFFICIALS WANT THE DEATH RULED A SUICIDE AND ZEN IS HAPPY TO COOPERATE DESPITE EVIDENCE INDICATING MURDER A SECOND DEATH SPOILS THE COVERUP THOUGH AS DO LEAKS TO THE PRESS SUGGESTING THE INVOLVEMENT OF A SHADOWY SECRET SOCIETY KNOWN AS THE CABAL ZEN MUST MAKE HIS WAY THROUGH A TWILIGHT WORLD IN WHICH TRUTH SEEMS TO SHIFT SHAPE DAILY THE DETECTIVE ATTEMPTS TO FIND THE SOLID DOORS CONCEALED IN THE TROMPE L'OEIL FACADES BEAUTIFULLY WRITTEN CABAL IS A WITTY AND SOPHISTICATED EXPLORATION OF VARIOUS ILLUSIONS AND REALITIES AND AN EXCELLENT THRILLER BASICALLY I'M ON THE SIDE OF THE ANGELS ZEN ASSURES A MAGISTRATE IN CABAL THE JURIST RESPONDS WHAT I NEED IS SOMEONE WHO'S ON THE SIDE OF THE LAW BROTHER CADFAEL THE 12THCENTURY MONKDETECTIVE CREATED BY ELLIS PETERS IS USUALLY ON THE SIDE OF BOTH IN THE HOLY THIEF MYSTERIOUS PRESS 246 PAGES 1795 THE WELLCRAFTED 19TH CHRONICLE OF THE BRITISH BENEDICTINE CADFAEL LABORS TO RESTORE THE SANCTIFIED BONES STOLEN FROM HIS ABBEY AND TO FIND THE MURDERER OF A POSSIBLE WITNESS TO THE THEFT SAINTLY INTERVENTION IS AMONG THE DEVICES THE HERBALISTSLEUTH ATTEMPTS TO EMPLOY IN UNRAVELING THIS NICELY TANGLED SKEIN WHICH INVOLVES A MUSICALLY GIFTED NOVICE AND A TROUBADOUR'S APPRENTICE WHO IS DRAWN TO HIS CHARMS A MISCHIEVOUS LOCAL LORD A CIVIL WAR AND ROVING BANDITS ALL FIGURE IN THE MYSTERY'S RESOLUTION 9303120001 930312 THURSDAY'S MARKETS INDUSTRIALS FALL 2134 POINTS BONDS DECLINE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL MOST STOCKS SANK AS INVESTORS TRIED TO DECIPHER MIXED ECONOMIC NEWS BOND PRICES FELL AND THE DOLLAR WEAKENED THE DOW JONES INDUSTRIAL AVERAGE SLID 2134 POINTS TO 345700 STANDARD & POOR'S 500STOCK INDEX DROPPED 261 TO 45372 BUT THE NASDAQ COMPOSITE INDEX GAINED 141 TO 69428 INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE IN THE WEEK ENDED FEB 27 INSTEAD OF FALLING AS ANALYSTS HAD PREDICTED THE GOOD NEWS WAS A COMMERCE DEPARTMENT REPORT THAT RETAIL SALES GREW 03 IN FEBRUARY A BIT BETTER THAN EXPECTED BUT STILL WEAK THE ECONOMIC NEWS IS A LITTLE CONTRADICTORY OBSERVED JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ MR MCALINDEN SAID INVESTORS ARE LOOKING TO TODAY'S REPORT ON PRODUCER PRICES FOR DIRECTION HE SAID THE STOCK AND BOND MARKETS WERE WEAKENING IN ANTICIPATION OF A MILD INCREASE IN INFLATION BOND PRICES HAVE BEEN FLAT THIS WEEK MR MCALINDEN PREDICTS THE STOCK MARKET WILL VACILLATE WITH THE DAYTODAY RELEASE OF ECONOMIC DATA WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 012 TO 9828 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2507 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 954 ISSUES FELL AND 951 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE LOST LESS THAN 1/8 POINT OR UNDER 125 FOR EACH 1000 FACE AMOUNT TO YIELD 676 THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16615 MARKS AND 11761 YEN COMPARED WITH 16663 MARKS AND 11805 YEN WEDNESDAY 9303120162 930219 LETTERS TO THE EDITOR MARIJUANA AS MEDICINE AS AUTHORS OF THE STUDY CITED IN DOUG BANDOW'S COUNTERPOINT COLUMN SOMETIMES MARIJUANA IS THE BEST MEDICINE OPED PAGE JAN 28 WE WOULD LIKE TO CORRECT AN OVERSTATEMENT WHILE IT IS TRUE THAT NEARLY 70 OF THOSE ONCOLOGISTS SAMPLED WHO HAD MADE UP THEIR MINDS ON THE SUBJECT WOULD PRESCRIBE MARIJUANA THESE REPRESENTED ONLY ABOUT HALF OF OUR TOTAL SAMPLE AN ADDITIONAL THIRD SAID THAT THEY WOULD NEED MORE INFORMATION WHICH IS UNDERSTANDABLE IN LIGHT OF THE PAUCITY OF CLINICAL STUDIES SINCE THESE FIGURES ARE BASED ON A RESPONSE RATE OF 44 THESE VIEWS MAY NOT BE PERFECTLY REPRESENTATIVE OF ONCOLOGISTS AT LARGE MR BANDOW CALLS FOR REOPENING THE PUBLIC HEALTH SERVICE'S COMPASSIONATE ACCESS PROGRAM WE AGREE BUT COMPASSIONATE ACCESS CAN SERVE ONLY A FEW FURTHERMORE THE PROGRAM IS SLOW AND UNWIELDY SINCE PATIENTS CAN BE APPROVED ONLY ON AN INDIVIDUAL BASIS AFTER A FOOD AND DRUG ADMINISTRATION MEDICAL REVIEW OFFICER HAS EVALUATED A DETAILED APPLICATION SUBMITTED BY THE PATIENT'S PHYSICIAN MORE IMPORTANT THAN COMPASSIONATE USE IS RESEARCH WE NEED CONTROLLED CLINICAL TRIALS TESTING WHOLE SMOKED MARIJUANA AGAINST THE CURRENTLY AVAILABLE ORAL THC PILLS MARINOL FOR THEIR CURRENTLY APPROVED INDICATIONS NAUSEA CONTROL IN CANCER CHEMOTHERAPY AND APPETITE STIMULATION IN PEOPLE WITH AIDS AND FOR ADDITIONAL INDICATIONS INCLUDING PAIN RELIEF OF VARIOUS KINDS AND CONTROL OF SPASTICITY IF WHOLE SMOKED MARIJUANA TURNS OUT BE THE BETTER MEDICINE FOR SOME PATIENTS RESEARCH SHOULD BE INITIATED INTO BETTER DELIVERY SYSTEMS TO REDUCE THE HEALTH RISKS OF SMOKING SUCH AS WATER PIPES AND VAPORIZERS AT THE SAME TIME IT WOULD BE WORTH COMPARING WHOLE SMOKED MARIJUANA WITH BOTH ORAL MARIJUANA AND INHALED THC SINCE THERE ARE NO PATENT RIGHTS TO BE HAD ON MARIJUANA THERE ARE NO DRUG COMPANIES INTERESTED IN THIS RESEARCH FUNDING FOR STUDIES WILL THEREFORE NEED TO COME FROM THE GOVERNMENT OR FOUNDATIONS THE SUMS INVOLVED ARE NOT LARGE BY MEDICAL RESEARCH STANDARDS THERE IS NO NECESSARY OR LOGICAL CONNECTION BETWEEN THE APPROVAL OF MARIJUANA AS A MEDICINE AND ITS LEGALIZATION FOR RECREATIONAL USE MORPHINE AND COCAINE FOR EXAMPLE ARE SCHEDULE 2 PRESCRIPTION DRUGS THE KEY TO MAKING A GOOD DECISION IS TO GET THE MEDICAL MARIJUANA QUESTION OUT OF THE HANDS OF DRUG WAR PARTISANS WHETHER PROHIBITIONISTS OR LEGALIZERS AND GIVE IT TO MEDICAL SCIENTISTS FOR CONSIDERATION ON ITS MERITS THE WRITERS ARE RESPECTIVELY A PHD CANDIDATE AND AN ASSOCIATE PROFESSOR AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT I AGREE THAT MARIJUANA CONTAINS A COMPONENT WITH GREAT THERAPEUTIC VALUE HOWEVER MR BANDOW'S COMMENTARY IS MISLEADING IN THAT IT CONFUSES THE USEFULNESS OF A PHARMACEUTICAL MARINOL WITH ITS SUITABILITY IN A NATURAL UNREFINED FORM MARIJUANA MARINOL IS DELTA9THC THE MAJOR ACTIVE COMPONENT OF MARIJUANA IN A PURIFIED STABLE FORM IN 1985 THE FDA ALLOWED USE OF MARINOL FOR TREATMENT OF NAUSEA AND VOMITING DUE TO CANCER CHEMOTHERAPY IN DECEMBER 1992 A NEW INDICATION WAS ADDED TREATMENT OF ANOREXIA APPETITE LOSS ASSOCIATED WITH WEIGHT LOSS IN PATIENTS WITH AIDS THE BASIS FOR THESE USES IS EXTENSIVE CLINICAL RESEARCH 3000 CANCER PATIENTS MOST OF WHOM HAD FAILED TO RESPOND TO OTHER ANTIEMETICS AND MORE THAN 200 AIDS PATIENTS WITH SIGNIFICANT WEIGHT LOSS THE CLAIM THAT MARINOL IS NOT AS EFFECTIVE AND/OR MORE TOXIC THAN MARIJUANA RUNS COUNTER TO THE FACTS IN STUDIES IN WHICH MARIJUANA AND MARINOL HAVE BEEN COMPARED MARINOL HAS BEEN SHOWN TO BE AS OR MORE EFFECTIVE THAN MARIJUANA WITH REGARD TO TOXICITY MOST PATIENTS SMOKING MARIJUANA DEVELOP SIDE EFFECTS HIGHS DIZZINESS OR DROWSINESS BY CONTRAST NOT MORE THAN ONE OUT OF SIX PATIENTS RECEIVING MARINOL IN APPETITE STIMULATION STUDIES HAD ANY OF THESE SIDE EFFECTS MARIJUANA OFTEN CONTAINS FUNGAL SPORES AND THE SMOKE HAS FOUR TIMES MORE PARTICULATE MATTER THAN TOBACCO THESE CONTAMINANTS ARE CLEARLY UNHEALTHY FOR AIDS AND MANY CANCER PATIENTS WHO ALREADY HAVE COMPROMISED IMMUNE AND PULMONARY SYSTEMS FEW PHYSICIANS TODAY WOULD CONSIDER PRESCRIBING DIGITALIS LEAF CINCHONA BARK OR A VARIETY OF PLANT OR FUNGAL MATERIALS IN PLACE OF THEIR PURIFIED PHARMACEUTICAL PREPARATIONS YET THAT IS EXACTLY WHAT MR BANDOW IS SUGGESTING WITH HIS RECOMMENDATIONS REGARDING MARIJUANA SIMPLY PUT MARIJUANA DOES NOT FIT THE DEFINITION OF A MODERN PHARMACEUTICAL A PURE QUALITYCONTROLLED PRODUCT OF DEFINED COMPOSITION IN A STABLE DOSAGE FORM ONCE THE SMOKE CLEARS THE SCIENTIFIC RATIONALE FOR THE PUBLIC HEALTH SERVICE POLICY BECOMES QUITE CLEAR LET'S NOT CLOUD IT WITH AN AGENDA BASED ON EMOTION RATHER THAN FACT THE WRITER IS A CONSULTANT TO AND FORMERLY WAS DIRECTOR OF RESEARCH FOR UNIMED INC THE MANUFACTURER OF MARINOL SEE RELATED LETTER LETTERS TO THE EDITORS MARIJUANA PATENT WSJ MARCH 11 1993 9302190122 9303120153 930212 UNEASY REALM SCANDALS SPIN BRITONS INTO GLOOM AND AN IDENTITY CRISIS AFFAIR IS NOT JUST TITILLATION MANY SEE IT TARNISHING CHURCH STATE TOURISM A WARM FEELING' IS GONE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL WORCESTER ENGLAND AT THE KING CHARLES II RESTAURANT A PLAQUE RECALLS HOW CHARLES FLED THROUGH THE BACKDOOR TO ESCAPE OLIVER CROMWELL IN ENGLAND'S CIVIL WAR THE BUILDING'S TUDOR FACADE STILL BEARS THE WORDS LOVE GOD HONOR KINGE BUT INSIDE OVER BEEF WELLINGTON AND RACK OF LAMB THE DEBATE IS WHETHER THERE WILL EVER BE A CHARLES III PEOPLE NEED TO KNOW THEIR STATION TO SLOT IN SAYS SHOP ASSISTANT ANN BLACKWELL WHO HOPES THE MONARCHY WILL SURVIVE IF YOU WANT TO BOW AND SCRAPE FINE RETORTS WELDER DANIEL BALDWIN WAVING A FORKFUL OF RUMP STEAK BUT THE ROYALS ARE FINISHED FROM NOW ON WE'LL JUST PAY THEM TO LOOK AFTER CASTLES IF THAT'S SO RICHARD TOWNSLEY WONDERS WHO OR WHAT WILL DEFINE BRITAIN'S IDENTITY WILL IT BE MILLIONAIRES WITH MOBILE PHONES LIKE IN AMERICA THE MUSEUM MANAGER ASKS OR WILL WE BECOME LIKE BELGIUM JUST ANOTHER FACELESS COUNTRY IN EUROPE THAT SUCH QUESTIONS ARE BEING ASKED AT ALL SHOWS HOW BRITTLE THE BRITISH CROWN HAS BECOME IN A GALLUP POLL PUBLISHED THIS WEEK 38 SAID PRINCE CHARLES SHOULDN'T BECOME KING ONLY 69 SAID THE MONARCHY WILL LAST PAST THE 1990S BRITAIN'S CURRENT NO 1 BESTSELLER A NOVEL DEPICTING BRITAIN AS A MONARCHLESS AMERICANSTYLE REPUBLIC IN WHICH THE ROYALS ARE PACKED OFF TO LIVE IN A RUNDOWN HOUSING PROJECT CALLED HELL CLOSE BUT THE DINNER DEBATE AND DOZENS LIKE IT ACROSS THE COUNTRY REVEAL A DEEPER DILEMMA THE MONARCHY SO BUTTRESSES BRITAIN THAT DOUBT ABOUT ITS FATE IS SHAKING ALMOST EVERY OTHER PILLAR OF BRITAIN'S SOCIETY AND PSYCHE AS THE THRONE WOBBLES SO TOO DOES THE ELABORATE CONFECTION OF CLASS AND PRIVILEGE THAT IT UPHOLDS GROWING CONCERNS RANGE FROM THE SURVIVAL OF THE MONARCHLED CHURCH OF ENGLAND TO THE VIABILITY OF THE ECONOMY IF GUARDS STOP CHANGING AT BUCKINGHAM PALACE THE POUND WOULD COLLAPSE I SHOULD THINK SAYS ANTHONY SAMPSON A LEADING AUTHOR WHOSE WORKS INCLUDE THE CHANGING ANATOMY OF BRITAIN HE LIKENS THE ROYAL CRISIS TO A COLLECTIVE NERVOUS BREAKDOWN WE'RE PLUNGING INTO INSECURITY AND CONFUSION ABOUT WHO WE ARE HE SAYS IT REMINDS ME OF AMERICA DURING WATERGATE BRITAIN'S IDENTITY CRISIS IS COMPOUNDED BY A GNAWING SENSE OF TERMINAL DECLINE WITH THE EMPIRE ALL BUT GONE THE ECONOMY A SHAMBLES AND THE GOVERNMENT VIEWED AS WEAK AND RUDDERLESS THE MONARCHY IS AN INSTITUTION THAT STILL FILLS MANY PEOPLE WITH PRIDE IT ALSO IS A SYMBOL OF BRITISH HERITAGE AND DISTINCTIVENESS AT A TIME WHEN MANY FEAR THEIR COUNTRY IS BEING SUCKED INTO A BLANDLY UNIFIED EUROPE IF YOU CHEAPEN MONARCHY YOU MIGHT AS WELL TAKE THE GREAT' OUT OF GREAT BRITAIN SAYS IAN HICKMAN A CLERICAL WORKER STARING INTO A PINT OF BITTER AT A WORCESTER PUB A VISIT TO WORCESTER A CONSERVATIVE CITY OF 80000 IN THE RURAL WEST OF ENGLAND REVEALS JUST HOW BEWILDERED MANY PEOPLE FEEL NO CITY IN THE REALM HAS STRONGER ROYALIST CREDENTIALS THE AUTOCRATIC KING JOHN SIGNER OF THE MAGNA CARTA WAS BURIED HERE AT HIS OWN REQUEST IT WAS HERE TOO IN 1652 THAT CHARLES'S CAVALIERS FOUGHT THEIR LAST STAND AGAINST PARLIAMENTARY ROUNDHEADS EARNING WORCESTER THE TITLE OF FAITHFUL CITY BUT NOW EVEN WORCESTER'S FAITH IS ERODING BENEATH THE TIDE OF ROYAL SCANDAL A TOPLESS DUCHESS OF YORK CAVORTING IN FRONT OF HER KIDS WITH A MAN NOT HER HUSBAND PRINCESS DIANA A K A SQUIDGY SWAPPING INTIMACIES WITH AN UNNAMED SUITOR PRINCE CHARLES MAKING SMUTTY LOVECHAT WITH CAMILLA PARKERBOWLES WIFE OF THE FORMER SILVER STICK IN WAITING AN AIDE TO THE QUEEN I FEEL CONNED SAYS MARJORIE JONES WHO WORKS AT THE REDBRICK VICTORIAN PLANT THAT PRODUCES LEA & PERRINS WORCESTERSHIRE SAUCE SOMETHING I BELIEVED IN MY WHOLE LIFE NOW LOOKS LIKE A GRUBBY SHAM MS JONES 66 WENT TO SEE THE QUEEN'S CORONATION AND EVERY OTHER ROYAL EVENT SHE COULD LATER SHE WAS PROUD TO COME WORK AT LEA & PERRINS WHICH BEARS THE SEAL GIVEN TO PRODUCTS THAT GRACE THE ROYAL TABLE A CROWN AND THE WORDS BY APPOINTMENT TO HER MAJESTY THE QUEEN WALKING HOME THROUGH RAIN TINGED WITH THE ODOR OF ANCHOVY AND GARLIC MS JONES SAYS THE ROYAL POMP MADE LIFE A LITTLE SPECIAL IT GAVE ME THIS WARM FEELING THAT ROYALTY WAS UP ABOVE US ORDINARY PEOPLE NOW SHE SAYS I WONDER IF THE ROYALS ARE EVEN ON A PAR WITH US WHO COULD LOOK UP TO THEM THIS SORT OF TALK ALARMS LADY COTTERELL WHO SERVES AS HIGH SHERIFF OF HEREFORD AND WORCESTER ONE OF THE COUNTLESS TITLES AND HONORS STILL BESTOWED BY THE QUEEN LADY COTTERELL AND HER HUSBAND THE SIXTH BARONET OF GARNONS LIVE IN A MANOR SO VAST THAT ITS LAST OCCUPANT TORE DOWN HALF THE HOUSE BECAUSE THERE WAS TOO MUCH TO LOOK AFTER NOW STANDING BEFORE A PORTRAIT OF THE FIFTH BARONET CLAD IN HIS SASH AND ARMOR SHE WONDERS IF PEOPLE DON'T RESPECT MONARCHY WHAT BECOMES OF ALL THE TITLES THE BASIC STRUCTURES OF SOCIETY SHE BELIEVES ROYAL POMP LENDS AN AURA OF EXCITEMENT AND CEREMONY TO WHAT COULD BE A DULL OCCASION SUCH AS THE OPENING OF A SHOPPING MALL AND SHE WORRIES ABOUT A BRITAIN STRIPPED OF SOCIAL HIERARCHY YOU'D GET MORE ANARCHY AND CRIME SHE SAYS IT'S BEEN QUITE ORDERED UNTIL NOW BECAUSE EVERYONE NOWS WHERE THEY STAND SUCH NOTIONS SOUND ABSURDLY DATED TO MANY YOUNG PEOPLE INDEED IF THERE IS A FUNDAMENTAL DIVIDE IN THE ROYAL DEBATE IT ISN'T ECONOMIC OR GEOGRAPHIC IT'S GENERATIONAL BRITONS WHOSE LIVES HAVE BEEN FRAMED BY THE QUEEN'S 41YEAR REIGN OR WHO RECALL THE SACRIFICES AND PLUCKY SPEECHES MADE BY THE ROYALS DURING THE BLITZ CAN HARDLY ENVISION THEIR NATION WITHOUT A MONARCH AT ITS HEAD YET YOUNGER PEOPLE MANY OF WHOM REGARD THE QUEEN AS A DOWDY DISTANT FIGURE FEEL MUCH LESS DEFERENCE PARTICULARLY NOW THAT YOUNG ROYALS THEY COULD BETTER IDENTIFY WITH SUCH AS FERGIE AND DI HAVE BEEN ALIENATED FROM THE ROYAL FOLD ALEC MACKIE A GRAYHAIRED FORMER ARMY OFFICER AND WORCESTER OFFICIAL IS A STAUNCH ROYALIST WHO JOKES THAT HE LONGS FOR THE DAYS WHEN BRITAIN HAD A GUNBOAT EAST OF THE SUEZ HIS SCRAPBOOK BULGES WITH NEWS CLIPS OF THE CORONATION CHARLES AND DI'S WEDDING AND MOST PRIZED OF ALL A PHOTO OF THE QUEEN GREETING HIS YOUNG DAUGHTER DURING A VISIT TO WORCESTER IT WAS MAGNIFICENT HE SAYS THE QUEEN WAS FRIENDLY BUT A LITTLE APART JUST AS SHE SHOULD BE BUT HIS DAUGHTER NOW 23 SHRUGS WHEN ASKED ABOUT THE INCIDENT ALL I REMEMBER IS THINKING WHO'S THIS WOMAN AND WHAT'S THE BIG DEAL' SAYS LUCY MACKIE WHO WORKS AT A RECORD SHOP CALLED 4PLAY LIKE MOST YOUNG PEOPLE SHE THINKS BRITAIN'S CIRCUMSTANCES DEMAND LESS POMP IT'S A BIG WASTE OF MONEY SHE SAYS ON BALANCE SHE THINKS THE CROWN SHOULD BE SAVED BUT WHEN ASKED WHY SHE OFFERS THE SAME DIMLY HISTORICAL REASON THAT MOST IN WORCESTER CITE WE'VE HAD ROYALTY SINCE DAY ONE AND A LOT OF COUNTRIES HAVEN'T EVEN SO SHE DOESN'T REALLY CARE IF A TRADITION THAT BEGAN WITH KING EDGAR IN 973 NOW ENDS WITH THE CURRENT MONARCH YOU'VE GOT YOUR MUM AND YOUR DAD TO RESPECT AND LOOK UP TO SHE SAYS SO WHY DO YOU NEED A KING OR QUEEN OPINION POLLS SUGGEST THAT SKEPTICS SUCH AS MS MACKIE NOW ARE IN THE MAJORITY ROUGHLY TWOTHIRDS OF BRITONS IN THE RECENT GALLUP SURVEY SAID THE ROYALS HAVE LOST TOUCH WITH ORDINARY PEOPLE AND SHOULD BECOME LIKE THE DUTCH MONARCHY WHICH IS STRIPPED OF ALMOST ALL POWER POMP AND PAY BRITAIN'S MONARCHY COSTS THE PUBLIC AN ESTIMATED 100 MILLION A YEAR ALMOST DOUBLE THE COMBINED COST OF THE MONARCHIES OF HOLLAND SWEDEN SPAIN BELGIUM DENMARK AND NORWAY THE DUTCH QUEEN BEATRIX RIDES A BICYCLE IN PUBLIC WORKS AS A THEATRICAL DIRECTOR AND TOURS IN A BUS TO MEET HER SUBJECTS QUEEN ELIZABETH BELIEVED TO BE THE WORLD'S RICHEST WOMAN HAS A FLEET THAT INCLUDES THREE JETS TWO HELICOPTERS A 17CARRIAGE TRAIN FIVE ROLLSROYCES AND A YACHT WITH A CREW OF 250 SUCH EXTRAVAGANCE THOUGH OFFSET BY REVENUE FROM CROWN LANDS THAT ARE GIVEN TO THE TREASURY IS CAUSING DEEP RESENTMENT DURING BRITAIN'S WORST RECESSION SINCE THE 1930S THE ANGER BUBBLED OVER IN NOVEMBER WHEN WINDSOR CASTLE BURNED AND TAXPAYERS LEARNED THAT THEY WOULD FOOT THE REPAIR BILL AFTER THE OUTCRY THE QUEEN QUICKLY ANNOUNCED THAT SHE WOULD ASSUME MUCH OF THE COST HERSELF AND SHE ALSO PLEDGED TO START PAYING INCOME TAX AND BEGIN SUPPORTING LESSER ROYALS NOW ON THE PUBLIC PAYROLL YESTERDAY THE GOVERNMENT CONFIRMED THAT THE QUEEN WILL BECOME SUBJECT TO INCOME TAX IN APRIL AT THE SAME RATE AS COMMONERS EVEN SO UNEMPLOYED BUILDER RICHARD CLARKE WONDERS WHY THE ROYAL FAMILY NEEDS SIX HOMES THEY SHOULD GIVE A FEW CASTLES TO THE HOMELESS HE SAYS WATCHING BOYS FROM THE KINGS' SCHOOL SCULLING DOWN THE SEVERN RIVER IN WORCESTER BUT DOWNSIZING ROYALTY POSES DILEMMAS WHILE TWOTHIRDS OF BRITONS SAY THEY WANT A DEMOCRATIC NOFRILLS MONARCHY MOST OF THE REST WHO REPRESENT THE ROYALS' BEDROCK SUPPORT FEEL QUEASY AT THE THOUGHT I JUST CAN'T SEE MYSELF STANDING IN A SUPERMARKET QUEUE WITH THE QUEEN SAYS THE COUNTY OFFICIAL MR MACKIE REFERRING TO THE SWEDISH KING'S HABIT OF SHOPPING FOR HIMSELF IF YOU TAKE AWAY THE MONARCHY'S MAGIC IT BECOMES JUST ANOTHER DRAB INSTITUTION BRITONS ALSO FEEL DAUNTED BY THE PROSPECT OF CRAFTING A REPUBLICAN STATE THE COUNTRY HAS NEITHER A BILL OF RIGHTS OR A SYSTEM OF CHECKS AND BALANCES REFORMING THE MONARCHY WOULD CREATE A YAWNING VACUUM BOTH STRUCTURAL AND SYMBOLIC WHICH WOULD HAVE TO BE FILLED PRESUMABLY BY POLITICIANS IN AMERICA YOU HAVE A CONSTITUTION TO REVERE SAYS MR TOWNSLEY THE MUSEUM MANAGER HERE ALL WE'VE GOT IS A POLITICAL SYSTEM THAT MOST REGARD WITH CONTEMPT A MORE BASIC WORRY IS HOW REFORM OF THE MONARCHY WOULD AFFECT THE 18 MILLION FOREIGNERS AND AN ESTIMATED 37 BILLION THAT TOURISM PUMPS INTO BRITAIN EACH YEAR HALF OF ALL SUMMERTIME VISITORS TO LONDON WATCH THE GUARDS CHANGE AT BUCKINGHAM PALACE THE BESTSELLING BOOK AT LONDON'S MAIN TOURIST OFFICE IS THE QUEEN AND HER FAMILY AND ROYAL IMAGES ARE A STAPLE IN OVERSEAS ADS IN LONDON POMP AND CIRCUMSTANCE HAPPENS EVERY DAY IS THE MESSAGE OF A NEW CAMPAIGN ROYALTY NOURISHES THE ECONOMY IN COUNTLESS SMALLER WAYS VALERIE DUB WORKS FOR A SUBSTANCEABUSE AND MENTALHEALTH CHARITY CALLED TURNING POINT WHEN DIANA AGREED TO ATTEND A RECENT FUNDRAISING LUNCHEON MS DUB FOUND IT VERY EASY TO SELL TABLES TO CORPORATIONS AT 1800 A POP SOME FIRMS PAID EXTRA TO BE NEAR AN AISLE IN THE HOPES THAT DIANA MIGHT PAUSE TO SPEAK WITH THEM BUT MS DUB WAS STUNNED BY HER CONTACT WITH A BLOATED ROYAL ENTOURAGE SHE DESCRIBES AS SQUABBLING COURTIERS WHO DON'T SEEM TO DO MUCH EXCEPT MULL OVER PETTY DETAILS EVEN DEMANDING THAT THREE MENUS BE SUBMITTED FOR ANY ROYAL FUNCTION IT BADLY NEEDS TO BE MANAGED AND STREAMLINED MS DUB SAYS ALSO UNDER NEW SCRUTINY IS THE UNITY OF CHURCH AND CROWN THAT HAS PREVAILED SINCE THE REIGN OF HENRY VIII AMONG THE MONARCH'S MANY TITLES IS THAT OF HEAD OF THE CHURCH OF ENGLAND AND THE CORONATION OATH INCLUDES A PLEDGE TO MAINTAIN AND PRESERVE INVIOLATELY THE CHURCH AND ITS DOCTRINE SOME SENIOR CLERICS HAVE STATED PUBLICLY THAT CHARLES'S APPARENT INFIDELITY DISQUALIFIES HIM FROM ASSUMING THIS RELIGIOUS ROLE IT WOULD CREATE SOME AWKWARDNESS IF CHARLES WERE TO BECOME KING CONCEDES THE 111TH BISHOP OF WORCESTER PHILIP GOODRICH WHO WONDERS IF IT ISN'T THE PUBLIC PERCEPTION OF THE MONARCHY THAT NEEDS TO CHANGE WE'VE BECOME A PERMISSIVE SOCIETY AND YET WE STILL HEAP ON ONE FAMILY THE OBLIGATION TO KEEP ALL THE RULES HE SAYS FROM THE MOATED CASTLE WHERE HE LIVES AND WORKS IT'S RATHER HYPOCRITICAL AND IMMATURE IN FACT THE WHOLE NOTION OF ROYALTY AS SOME SORT OF IDEAL BRITISH FAMILY ON SHOW FOR THE NATION WAS INVENTED DURING QUEEN VICTORIA'S REIGN AND ONLY TOOK OFF WITH TELEVISION ACCESS TO THE ROYALS' HOMES AND THE GLAMOROUS MARRIAGE OF CHARLES AND DIANA IN THIS SENSE MANY CRITICS FEEL THE ROYAL FAMILY HAS SIMPLY BEEN HOISTED BY ITS OWN PUBLICRELATIONS PETARD SOME EVEN SUGGEST THAT THE ROYALS BECOME MORE REMOTE AND ARISTOCRATIC NOT LESS SO THEIR LIFESTYLE REFLECTS THE VULGAR EXTRAVAGANCE OF THE 1980S SAYS SHEILA LAWLOR DEPUTY DIRECTOR OF A CONSERVATIVE LONDON THINK TANK YOU DON'T GET THAT SORT OF BEHAVIOR FROM THE WELLBRED NOBILITY UNFORTUNATELY FOR THE ROYALS STILL MORE VULGARITY WILL SOON BE ON DISPLAY ON SUNDAY BRITISH TV WILL AIR DIANA HER TRUE STORY A SOAPOPERA VERSION OF THE ANDREW MORTON BESTSELLER THAT INCLUDES SCENES OF A BULIMIC PRINCESS VOMITING AND THROWING HERSELF DOWN STAIRS OTHER MINEFIELDS AHEAD THE RUMORED EXISTENCE OF MORE ROYAL TAPES A LAWSUIT FILED BY THE QUEEN AGAINST A LONDON TABLOID AND THE POSSIBILITY THAT CHARLES AND DIANA WILL DIVORCE THE PROSPECT OF SUCH UNENDING EMBARRASSMENTS MAKES MANY HOPE THAT THE QUEEN WILL HANG ON UNTIL CHARLES'S 10YEAROLD SON WILLIAM WILL BE OLD ENOUGH TO ASSUME POWER AND WHILE ONLY ABOUT 20 SAY THE NATION WOULD BE BETTER OFF WITHOUT THE MONARCHY THEIR RANKS ARE GROWING FAST PARTICULARLY AMONG THE YOUNG THE QUESTION IS NO LONGER WHETHER THE QUEEN IS GOING TO BE WHITTLED DOWN TO THE SIZE OF THE DUTCH MONARCH SAYS HAROLD BROOKSBAKER PUBLISHING DIRECTOR OF BURKE'S PEERAGE A SORT OF ROYAL ALMANAC IT'S WHETHER SHE'LL LIVE TO SEE MANY MORE DAYS AS QUEEN LONDON BOOKMAKERS SEEM TO AGREE AT THE START OF THE YEAR THE ODDS AGAINST ABOLITION OF THE MONARCHY BY THE YEAR 2000 STOOD AT 1001 NOW THEY'RE AT 81 IF THE MONARCHY DOES GO MR BROOKSBAKER WON'T STICK AROUND TO HELP THOSE WHO WANT TO KEEP TRACING ROYAL HERITAGE THE RAISON D'ETRE WOULD BE GONE HE SAYS WITH A SIGH IT WOULD BE LIKE WORKING IN A FUNERAL HOME SEE RELATED LETTER LETTERS TO THE EDITOR AMERICAN OATH OF FEALTY FALLS ON DRY PARCHMENT WSJ MARCH 11 1993 9302120077 9303120014 930218 REVIEW & OUTLOOK EDITORIAL THE MEDICARE PLANTATION THE CLINTON WHITE HOUSE SHOULDN'T ACT SURPRISED TO DISCOVER THAT IT HAS FRIGHTENED THE ELDERLY WITH ITS PROPOSAL TO CONTROL HEALTH SPENDING BY REDUCING MEDICARE REIMBURSEMENTS TO DOCTORS AND HOSPITALS IT'S NOT BECAUSE THE ELDERLY PARTICULARLY LOVE THE MEDICARE SYSTEM IT'S BECAUSE THEY BELIEVE THEY'RE LEGALLY TRAPPED INSIDE THE SYSTEM AND ALL ITS INEFFICIENCIES THEY KNOW WHO'S GOING TO BEAR THE BRUNT IN THE FORM OF UNRETURNED PHONE CALLS BREEZETHROUGH DOCTORS' VISITS AND TESTIER HOSPITAL PERSONNEL THE FACT IS WHETHER YOUR NAME IS ROCKEFELLER OR JONES DU PONT OR SMITH IF YOU'RE OVER 65 MEDICARE PAYS YOUR SICKNESS BILLS THERE IS NO ESCAPE FROM THE MEDICARE PLANTATION THIS HAS BEEN THE LAW SINCE CONGRESS CREATED MEDICARE IN 1965 PART A WHICH IS MANDATORY COVERS HOSPITAL EXPENSES PART B WHICH COVERS DOCTORS' COSTS IS OPTIONAL BUT ALMOST NO ONE OPTS OUT SINCE NO EQUIVALENT INSURANCE IS AVAILABLE IN THE PRIVATE SECTOR BESIDES PAYING THE BILLS MEDICARE ALSO SPECIFIES WHAT TREATMENTS IT WILL COVER AND TELLS YOUR DOCTOR HOW MUCH HE CAN CHARGE THE PATIENT ISN'T PERMITTED TO PAY MORE THAN 20 OF A FEE THAT IS FIXED BY THE GOVERNMENT WHAT IF YOU WANT EXTRA TREATMENT OR WHAT IF YOU SIMPLY WANT TO AVOID THE TANGLE OF RED TAPE AND PAY FOR SOMETHING YOURSELF ASK ANY DOCTOR WHO TREATS MEDICARE PATIENTS AND MOST WILL SAY THAT MEDICARE IS AN ALLORNOTHING PROPOSITION IF YOU JOIN PART B YOU MUST LIMIT YOUR TREATMENT TO THOSE AUTHORIZED BY MEDICARE OR DO YOU LAST FALL A FEDERAL JUDGE IN NEW JERSEY RULED IN EFFECT THAT FIVE PATIENTS HAD THE RIGHT TO SELECTIVELY OPT OUT THAT IS THEY CAN PAY THEIR DOCTOR PRIVATELY FOR TREATMENTS THAT MAY OR MAY NOT BE COVERED BY MEDICARE ONE PATIENT A QUADRIPLEGIC CONFINED TO A NURSING HOME WANTED TO PAY HIS DOCTOR FOR MORE FREQUENT VISITS THAN ALLOWED UNDER MEDICARE THE OTHERS FOR REASONS OF PRIVACY WANTED TO PAY SOME BILLS THEMSELVES THEIR PHYSICIAN DR LOIS COPELAND FEARING FINES ASKED MEDICARE FOR A RULING BUT SHE RECEIVED CONTRADICTORY ANSWERS NO SURPRISE TO MEDICARE VETERANS AND SO WITH HER PATIENTS DECIDED TO TAKE THE MATTER TO COURT THE PATIENTS CLAIMED THAT ANY POLICY PROHIBITING THEM FROM PAYING THEIR DOCTOR WAS AN UNCONSTITUTIONAL INFRINGEMENT OF THEIR RIGHT TO PRIVACY DISTRICT COURT JUDGE NICHOLAS POLITAN'S INSIGHTFUL RULING SAYS A GREAT DEAL ABOUT THE INCOMPREHENSIBLE MONSTER MEDICARE HAS MUTATED INTO FIRST HE RULED THERE IS IN FACT NO CLEARLY ARTICULATED POLICY ON PRIVATE CONTRACTING ON ONE HAND TWO PRIVATE INSURANCE CARRIERS UNDER CONTRACT TO PROCESS MEDICARE CLAIMS WARNED DR COPELAND THAT THE PATIENTS COULDN'T HIRE HER PRIVATELY BUT A LETTER FROM GAIL WILENSKY THEN HEAD OF THE HEALTH CARE FINANCING ADMINISTRATION WHICH ADMINISTERS MEDICARE SUGGESTED THAT PRIVATE CONTRACTING MIGHT BE LAWFUL I CANNOT POSSIBLY CONCLUDE JUDGE POLITAN WROTE IN MEASURED UNDERSTATEMENT THAT THE SECRETARY OF HEALTH AND HUMAN SERVICES HAS CLEARLY ARTICULATED A POLICY ON THE ISSUE THE CASE'S CATCH22 HOWEVER WAS THE COURT'S FINDING THAT DR COPELAND AND HER PATIENTS HAD SUFFERED NO INJURY SINCE THERE WAS NO CLEAR FEDERAL POLICY THUS THE COURT RULES THE CASE WASN'T RIPE FOR ADJUDICATION NONETHELESS JUDGE POLITAN WENT TO GREAT LENGTHS TO UNDERSCORE THE CORRECTNESS OF THEIR LEGAL POSITION FINDING THAT THE MEDICARE ACT DOES NOT PROHIBIT PRIVATE CONTRACTING HE WROTE NEITHER THE STATUTES NOR THE REGULATIONS EXPRESSLY ADDRESS THE ISSUE OF WHETHER DISENROLLMENT ON A PARTIAL OR SERVICEBYSERVICE BASIS IS ACCEPTABLE UNDER THE MEDICARE PROGRAM THE SIGNIFICANCE OF THIS CASE WHICH HAS RECEIVED SCANT ATTENTION IS THAT IT REASSERTS AN IMPORTANT RIGHT THAT HAS BEEN SLIPPING AWAY UNDER MEDICARE AND IS ABSENT IN EVERY OTHER NATIONAL HEALTH CARE SYSTEM THE RIGHT OF THE PATIENTS TO SPEND THEIR MONEY AS THEY SEE FIT IN 1960 BEFORE MEDICARE AND MEDICAID GOVERNMENT SPENDING CONSTITUTED ONLY 24 OF THE TOTAL AMOUNT WE SPENT ON HEALTH CARE BY 1990 IT HAD GROWN TO 42 DESPITE STRICT PRICE CONTROLS AS HILLARY RODHAM CLINTON AND HER ASSOCIATES CONSIDER HOW TO REDUCE THE COST OF US HEALTH CARE THEY OUGHT TO TAKE A LONG HARD LOOK AT THE MEDICARE MESS SQUEEZING THE DOCTORS AND HOSPITALS AS THE ADMINISTRATION IS NOW PROPOSING MAY SEEM TO THEM A FAST WAY TO SHUT OFF THE SYSTEM'S HEMORRHAGING RED INK BUT THE CLINTON LAWYERS MIGHT HAVE A LOOK AT THAT NEW JERSEY DECISION JUDGE POLITAN MAY HAVE FOUND A WAY FOR THEM TO DECIDE THAT SOMETIMES OPTING OUT OF THE MEDICARE PLANTATION CAN BE PART OF THE SOLUTION SEE RELATED LETTER LETTERS TO THE EDITOR MEDICARE PATIENTS DENIED BASIC RIGHT WSJ MARCH 11 1993 9302180101 9303110180 930311 WHO'S NEWS DIED JOHN WILLIFORD 61 CHAIRMAN OF AKORN INC MONDAY IN A BOAT OFF OF MEXICO APPARENTLY OF A HEART ATTACK 9303110179 930311 WHO'S NEWS CALIFORNIA ENERGY CO CALIFORNIA ENERGY CO OMAHA NEB RICHARD K DAVIDSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UNION PACIFIC RAILROAD WAS NAMED A DIRECTOR OF THIS DEVELOPER OF POWER GENERATING FACILITIES INCREASING BOARD MEMBERSHIP TO 13 9303110178 930311 WHO'S NEWS SPHINX PHARMACEUTICALS CORP SPHINX PHARMACEUTICALS CORP DURHAM NC H JEFF LEIGHTON 47 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT RESEARCH AND DEVELOPMENT OF THIS BIOPHARMACEUTICAL CONCERN MR LEIGHTON MOST RECENTLY SERVED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GENESIS PHARMACEUTICALS INC A CLOSELY HELD BIOTECHNOLOGY COMPANY IN CAMBRIDGE MASS HE SUCCEEDS GLENN COOPER 40 WHO LEFT SPHINX LAST SUMMER TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PROGENITOR INC A CLOSELY HELD BIOTECHNOLOGY FIRM IN COLUMBUS OHIO SPHINX LAST MONTH SIGNED A LETTER OF INTENT TO ACQUIRE GENESIS IN A STOCK SWAP VALUED AT ABOUT 4 MILLION 9303110177 930311 WHO'S NEWS NORFOLK SOUTHERN CORP NORFOLK SOUTHERN CORP NORFOLK VA R ALAN BROGAN 52 YEARS OLD WILL BECOME PRESIDENT OF THIS RAIL AND TRUCK TRANSPORTATION'S NORTH AMERICAN VAN LINES INC UNIT IN FORT WAYNE IND HE SUCCEEDS JOSEPH D RUFFOLO 51 WHO WILL BECOME A FULLTIME CONSULTANT TO NORTH AMERICAN VAN LINES MR BROGAN CONTINUES AS EXECUTIVE VICE PRESIDENT OF TRANSPORTATION LOGISTICS OF NORFOLK SOUTHERN 9303110176 930311 WHO'S NEWS LTV CORP LTV CORP CLEVELAND RICHARD T RAY 35 YEARS OLD FORMERLY SENIOR VICE PRESIDENT OF ADMINISTRATION AT CHARTER CO AND CHIEF FINANCIAL OFFICER OF THAT COMPANY'S OIL OPERATIONS WAS NAMED VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS COMPANY'S LTV ENERGY PRODUCTS UNIT MR RAY SUCCEEDS A LEE MULKEY 43 WHO HAD BEEN VICE PRESIDENT OF FINANCE AND INFORMATION SYSTEMS MR MULKEY RESIGNED FROM THAT POST ON JAN 1 FOR PERSONAL REASONS THE COMPANY SAID LTV CORP IS A STEELMAKER AND OIL FIELD PRODUCTS AND EQUIPMENT CONCERN 9303110175 930311 WHO'S NEWS HUNTWAY PARTNERS LIMITED PARTNERSHIP HUNTWAY PARTNERS LIMITED PARTNERSHIP VALENCIA CALIF WARREN NELSON WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS REFINERY COMPANY MR NELSON WHO WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT EVEREST & JENNINGS INTERNATIONAL LTD SUCCEEDS DOUGLAS HANSON WHO LEFT THE COMPANY 9303110173 930311 DELINQUENT LOANS SHRANK FOR THIRD STRAIGHT QUARTER WASHINGTON DELINQUENT CONSUMER INSTALLMENT LOANS SHRANK FOR THE THIRD CONSECUTIVE QUARTER SUGGESTING CONSUMER EFFORTS IN THE PAST TWO YEARS TO PARE THEIR DEBT ARE BEARING FRUIT THE AMERICAN BANKERS ASSOCIATION SAID THE CONSUMERCREDIT DELINQUENCY RATIO FELL TO A SEASONALLY ADJUSTED 243 AT THE END OF 1992 FROM 246 AS OF SEPT 30 AND 258 AT THE END OF 1991 ACCORDING TO THE BANKERS' GROUP THE DELINQUENCY RATIO REFLECTS THE PERCENTAGE OF ALL CONSUMER CREDIT ACCOUNTS THAT ARE 30 DAYS OR MORE OVERDUE BASED ON TOTAL NUMBER OF ACCOUNTS DELINQUENCIES ON BANK CREDIT CARDS FELL TO A SEASONALLY ADJUSTED 293 AS OF DEC 31 FROM 314 THE PREVIOUS QUARTER BASED ON TOTAL DOLLARS OWED DELINQUENCIES ON BANK CARDS FELL TO AN UNADJUSTED 411 FROM 427 IN SEPTEMBER AND 461 AT THE END OF 1991 THE BANKERS' GROUP SAID JAMES CHESSEN THE GROUP'S CHIEF ECONOMIST SAID HE IS OPTIMISTIC THAT DELINQUENCIES WILL CONTINUE TO IMPROVE IN 1993 ESPECIALLY GIVEN LOWER INTEREST RATES ON EVERYTHING FROM MORTGAGES TO CREDIT CARDS DELINQUENCIES FOR INSTALLMENT LOANS VARIED BY REGION WITH THE LOWEST REPORTED IN FLORIDA AT 075 AND THE HIGHEST IN NEW YORK AT 526 THESE RATIOS AREN'T SEASONALLY ADJUSTED 9303110171 930311 AT&T EXMANAGER SEC AGREE TO SETTLE INSIDERTRADE CHARGES NEW YORK A FORMER MIDLEVEL MANAGER AT AMERICAN TELEPHONE & TELEGRAPH CO AGREED TO PAY 261846 TO SETTLE CHARGES THAT HE USED INSIDE INFORMATION TO PROFIT ON AT&T'S 1991 ACQUISITIONS OF NCR CORP AND TERADATA CORP THE SECURITIES AND EXCHANGE COMMISSION ANNOUNCED THE SETTLEMENT AS IT FILED A LAWSUIT AGAINST C ROBERT DUDGEON WHO WAS A DISTRICT MANAGER IN THE CORPORATE STRATEGY AND DEVELOPMENT DEPARTMENT OF THE TELECOMMUNICATIONS GIANT ACCUSING HIM OF INSIDER TRADING THE SEC ALSO IS INVESTIGATING OTHER INDIVIDUALS WHO TRADED IN THE STOCK OF NCR AND TERADATA AT AROUND THE TIME OF THE AT&T TAKEOVERS SAID ELLEN B COHEN AN SEC LAWYER IN WASHINGTON HANDLING THE DUDGEON CASE MS COHEN DECLINED TO SAY WHO THOSE INDIVIDUALS WERE OR WHETHER THEY WORKED AT AT&T AN AT&T SPOKESMAN DECLINED TO COMMENT ON WHETHER THE COMPANY WAS AWARE OF ANY OTHER INVESTIGATIONS BUT THE SPOKESMAN SAID THAT THE COMPANY HAS A CLEAR POLICY AGAINST INSIDER TRADING AND THAT SUPERVISORS ARE REQUIRED ANNUALLY TO REMIND EMPLOYEES OF THE RULE MR DUDGEON WHO RESIGNED FROM AT&T IN JANUARY 1992 AFTER 23 YEARS WITH THE COMPANY ALLEGEDLY MADE 262314 IN ILLEGAL PROFITS BY BUYING STOCK AND OPTIONS IN NCR AND TERADATA BEFORE THE TAKEOVERS WERE ANNOUNCED UNDER THE SETTLEMENT HE WOULD HAVE BEEN REQUIRED TO PAY NEARLY 570000 REPRESENTING THE ALLEGEDLY ILLEGAL PROFITS A PENALTY AND INTEREST BUT THE SEC AGREED TO ACCEPT THE 261846 SETTLEMENT BECAUSE OF MR DUDGEON'S INABILITY TO PAY THE LARGER AMOUNT MR DUDGEON 55 YEARS OLD NEITHER ADMITTED NOR DENIED THE ALLEGATIONS UNDER THE SETTLEMENT BUT HE DID CONSENT TO AN INJUNCTION THAT BARS HIM FROM VIOLATING SECURITIES LAWS AGAIN OR FACE POSSIBLY INCREASED PENALTIES PHONE CALLS TO MR DUDGEON AND HIS LAWYER SEEKING COMMENT WERE NOT RETURNED 9303110170 930311 WHO'S NEWS LITTON INDUSTRIES INC LITTON INDUSTRIES INC BEVERLY HILLS CALIF WILLIAM C EDWARDS 64 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE BOARD TO 11 MEMBERS HE IS A PARTNER WITH BRYAN & EDWARDS A GENERAL PARTNER WITH BANNER PARTNERS AND RITTER PARTNERS AND CHAIRMAN OF XERUCA CORP LITTON IS A TECHNOLOGYBASED COMPANY THAT PROVIDES RESOURCEEXPLORATION SERVICES INDUSTRIALAUTOMATION SYSTEMS AND ADVANCED ELECTRONIC AND DEFENSE SYSTEMS 9303110169 930311 HEALTHCARE BUSINESS PRACTICES SPARK DEBATE OVER IMPACT OF ANTITRUST RULES BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL WILL MORE OR LESS ANTITRUST REGULATION HELP TO REDUCE HEALTHCARE COSTS THAT IS A QUESTION LAWYERS ECONOMISTS AND POLITICIANS CAN'T SEEM TO AGREE ONAND ONE THAT COURTS ARE INCREASINGLY BEING ASKED TO RESOLVE THE ISSUE TOOK ON ADDED SIGNIFICANCE THIS WEEK AFTER DRUG COMPANIES SAID THEY WILL SEEK WAIVERS OF ANTITRUST RULES SO THEY CAN DISCUSS WAYS TO HOLD DOWN DRUG PRICES HEALTHCARE SPECIALISTS HAVE LONG CONTENDED THAT PRICES ARE HIGH IN PART BECAUSE DOCTORS AND HOSPITALS AREN'T COMPETITIVE ENOUGH WITH EACH OTHER AS A RESULT MANY ARGUE FOR GREATER ENFORCEMENT OF THE US'S ANTITRUST LAWS WHICH ARE DESIGNED TO PROMOTE FREER COMPETITION BY PREVENTING COMPANIES FROM GANGING UP ON COMPETITORS OR COLLUDING TO RAISE PRICES TROUBLE IS THERE'S NO CONSENSUS ON HOW DIFFERENT BUSINESS PRACTICES FROM HOSPITAL MERGERS TO PRICEFIXING OF DRUGS AFFECT COMPETITION ULTIMATELY PEOPLE THROW UP THEIR HANDS AND SAY WE'RE GOING TO GO TO THE ROULETTE WHEEL CALLED THE COURTS SAYS UWE REINHARDT A PRINCETON UNIVERSITY HEALTHCARE ECONOMIST IN ONE RECENT CASE FOR EXAMPLE US HEALTHCARE INC A LARGE HEALTH MAINTENANCE ORGANIZATION ARGUED THAT ANOTHER HMO HEALTHSOURCE INC ILLEGALLY RESTRICTED COMPETITION BY ENTERING INTO EXCLUSIVE CONTRACTS WITH DOCTORS THE CONTRACTS PROVIDED THAT DOCTORS AFFILIATED WITH HEALTHSOURCE WOULD BE PAID MORE IF THEY REFUSED TO WORK FOR ANY OTHER HMO US HEALTHCARE ALLEGED THAT THE HEALTHSOURCE CONTRACTS HAMPERED ITS EFFORTS TO EXPAND INTO NEW HAMPSHIRE HEALTHSOURCE IS BASED IN CONCORD NH HMOS KEEP EXPENSES AND PREMIUMS DOWN BY REFERRING SUBSCRIBERS ONLY TO AFFILIATED PHYSICIANS WHO IN TURN ARE PAID A FLAT FEE BY THE HMO WHILE MANY HMOS HIRE DOCTORS AS EMPLOYEES OTHERS INCLUDING THE HEALTHSOURCE HMO PAY INDEPENDENT DOCTORS TO TREAT ITS MEMBERS IN A DECISION LAST MONTH THE FIRST US CIRCUIT COURT OF APPEALS SAID THE CONTRACTS DIDN'T VIOLATE ANTITRUST LAW IN THE COURT'S OPINION JUDGE MICHAEL BOUDIN WROTE THAT EVEN THOUGH HEALTHSOURCE MAY HAVE CONTRACTED WITH 25 OF THE STATE'S DOCTORS THAT STILL LEFT ENOUGH DOCTORS FOR US HEALTHCARE TO HIRE THE ISSUE OF HMOS' EXCLUSIVE CONTRACTS WITH DOCTORS SHOWS HOW SOME SPECIALISTS CAN VIEW A PARTICULAR HEALTHCARE POLICY AS PROMOTING COMPETITION WHILE OTHERS SEE IT AS INHIBITING COMPETITION ON THE ONE HAND IF YOU ALLOW HMOS TO LOCK UP PHYSICIANS YOU COULD ULTIMATELY WIND UP WITH TOO FEW HMOS SAYS PROF REINHARDT BUT ALLOWING A DOCTOR TO WORK FOR MANY DIFFERENT HMOS GIVES EACH HMO LESS CONTROL OVER WHAT THE DOCTOR DOES THAT MAY MAKE IT HARDER FOR THE HMOS TO CONTROL PRICES PROF REINHARDT SAYS THERE IS A VERY FINE LINE BETWEEN ANTICOMPETITIVE CONDUCT AND PROCOMPETITIVE CONDUCT SAYS PHILLIP PROGER AN ANTITRUST SPECIALIST WITH JONES DAY REAVIS & POGUE IN WASHINGTON IN THE US HEALTHCARE CASE JUDGE BOUDIN A FORMER ANTITRUST SPECIALIST ACKNOWLEDGED THE ROLE OF COURTS IN RESOLVING DISPUTES ABOUT HOW TO PROMOTE HEALTHCARE COMPETITION COURTS ARE PROPERLY AVAILABLE TO SETTLE CLAIMS THAT ONE BUSINESS DEVICE OR ANOTHER IS SUPPRESSING COMPETITION IN THIS VITAL INDUSTRY HE WROTE IN ANOTHER RECENT CASE A FEDERAL ADMINISTRATIVE LAW JUDGE UPHELD A MERGER THAT GAVE ONE HOSPITAL COMPANY CONTROL OF THREE OF FIVE HOSPITALS IN AN AREA OF NORTHERN CALIFORNIA THE JUDGE LEWIS PARKER WROTE THAT THE FACTS BELIE THE CLAIM THAT COMPETITION AMONG HEALTHCARE PROVIDERS WILL GIVE CONSUMERS THE SAME BENEFITS AS COMPETITION IN OTHER INDUSTRIES LAWYERS SAY THE CLINTON ADMINISTRATION MAY ALSO TRY USING CERTAIN ANTITRUST LAWS TO FORCE DOWN DRUG PRICES PRESIDENT CLINTON AND OTHER ADMINISTRATION OFFICIALS HAVE ATTACKED THE INDUSTRY FOR INCREASING DRUG PRICES MUCH FASTER THAN INFLATION BUT IN A STARK ILLUSTRATION OF THE ALTERNATIVE APPROACHES TO ANTITRUST LAW DRUG COMPANIES SAY THE ADMINISTRATION INSTEAD SHOULD RELAX ENFORCEMENT OF THE ANTITRUST LAWS AGAINST THEIR INDUSTRY SO THAT THEY CAN DISCUSS CHANGES IN PRICING POLICES AMONG THEMSELVES SUCH DISCUSSIONS CURRENTLY ARE OFF LIMITS BECAUSE THEY WOULD VIOLATE ANTITRUST LAWS AGAINST PRICE FIXING 9303110167 930311 WHO'S NEWS SULCUS COMPUTER CORP SULCUS COMPUTER CORP GREENSBURG PA DALLAS L TALLEY 57 YEARS OLD WAS NAMED TO THE NEW POST OF CHIEF OPERATING OFFICER FOR THIS DEVELOPER OF COMPUTER SYSTEMS FOR THE HOSPITALITY LEGAL AND REAL ESTATE MARKETS MR TALLEY WAS FORMERLY CHIEF EXECUTIVE OF TALLEY ASSOCIATES A SAN FRANCISCO AND DALLAS FIRM WHICH SPECIALIZES IN MERGERS AND ACQUISITIONS STRATEGIC ALLIANCES AND FUNDING FOR INTERNATIONAL BUSINESSES 9303110166 930311 ECONOMY FORECASTERS REVISE UPWARD THEIR OUTLOOK ON ECONOMY WASHINGTON FORECASTERS ARE GROWING MORE OPTIMISTIC ABOUT THE PROSPECTS FOR THE ECONOMY THIS YEAR THE LATEST MONTHLY SURVEY BY THE BLUE CHIP ECONOMIC INDICATORS NEWSLETTER FOUND THE AVERAGE OF THE 51 FORECASTS PREDICTS THE ECONOMY WILL GROW 32 THIS YEAR 01 PERCENTAGE POINT HIGHER THAN THE PREVIOUS MONTH'S FORECAST IT'S THE THIRD MONTH IN A ROW THE BLUE CHIP FORECASTERS HAVE REVISED THEIR 1993 OUTLOOK UPWARD THE MAJOR REASONS CITED FOR THE ROSIER PREDICTION ARE THE STRONGERTHANANTICIPATED GROWTH IN THE FOURTH QUARTER AND THE STEADILY GROWING LENGTH OF THE AVERAGE WORKWEEK WHICH THE NEWSLETTER TERMS ONE OF THE MOST RELIABLE INDICATORS OF FUTURE JOB GROWTH THE BLUE CHIP FORECASTERS EXPECT THE ECONOMY TO GROW ABOUT 29 IN THE CURRENT QUARTER SUBSTANTIALLY SLOWER THAN THE 48 GROWTH IN THE FOURTH QUARTER THEY EXPECT CONSUMER PRICES TO RISE 31 THIS YEAR ABOUT THE SAME AS LAST YEAR FOR 1994 THE AVERAGE FORECAST IS FOR 31 GROWTH DOWN FROM THE 33 PREDICTION MADE A MONTH EARLIER ECONOMISTS WHO LOWERED THEIR FORECASTS CITED THE LIKELY NEGATIVE IMPACT OF PRESIDENT CLINTON'S DEFICITREDUCTION PLAN ON THE ECONOMY 9303110165 930311 MOLTEN METAL STOCK OFFER WALTHAM MASS MOLTEN METAL TECHNOLOGY INC SAID IT COMPLETED AN INITIAL PUBLIC OFFERING OF 3450000 COMMON SHARES AT 14 EACH UNDERWRITERS WERE LED BY OPPENHEIMER & CO AND ALEX BROWN & SONS INC PROCEEDS WILL BE USED TO CONSTRUCT PLANTS THAT USE MOLTEN METALS' PATENTED CATALYTIC TECHNOLOGY FOR CONVERTING HAZARDOUS WASTES INTO VALUABLE PRODUCTS USING A BATH OF MOLTEN METAL 9303110164 930310 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303110163 930311 INTERNATIONAL BRIEF VICKERS PLC FIRM POSTS WIDER '92 LOSS AND SLATES RIGHTS OFFERING VICKERS PLC A BRITISH ENGINEERING AND AEROSPACE CONCERN SAID ITS PRETAX LOSS WIDENED IN 1992 TO 259 MILLION 373 MILLION FROM 124 MILLION AND ANNOUNCED THAT IT WAS SEEKING FUNDS THROUGH A 605 MILLION RIGHTS ISSUE VICKERS SLASHED ITS DIVIDEND 75 TO 15 PENCE 22 CENTS A SHARE FROM SIX PENCE ANALYSTS SAID THE RESULTS WERE IN LINE WITH EXPECTATIONS AND NOTED THAT THE COMPANY HAS MADE PROGRESS IN ITS RESTRUCTURING EFFORTS SALES ROSE 10 TO 7185 MILLION FROM 6522 MILLION THE RIGHTS ISSUE WITH ONE NEW SHARE FOR EVERY FOUR ORDINARY SHARES HELD HAS AN ISSUE PRICE OF 95 PENCE A SHARE 9303110162 930311 INTERNATIONAL BRIEF CADBURY SCHWEPPES PLC UK BEVERAGE CONCERN'S '92 PRETAX PROFIT ROSE 57 BRITISH CONFECTIONARY AND BEVERAGE CONCERN CADBURY SCHWEPPES PLC SAID PRETAX PROFIT ROSE 57 IN 1992 HELPED BY EXCELLENT PERFORMANCES FROM ALL OF ITS UK BUSINESSES OUR 1992 RESULTS ARE A CREDITABLE PERFORMANCE IN A YEAR WHEN MOST OF THE MAJOR MARKETS IN WHICH WE OPERATE WERE IN RECESSION SAID CHAIRMAN GRAHAM DAY THE PRETAX PROFIT OF 3327 MILLION 4789 MILLION WAS HIGHER THAN THE 318 MILLION THAT ANALYSTS HAD GENERALLY BEEN EXPECTING PRETAX PROFIT IN 1991 WAS 3147 MILLION LIKEWISE THE FULLYEAR DIVIDEND OF 132 PENCE 19 CENTS A SHARE BETTERED MARKET EXPECTATIONS OF A PAYOUT OF 13 PENCE THE COMPANY PAID A DIVIDEND OF 125 PENCE IN 1991 SALES ROSE 43 TO 337 BILLION 485 BILLION FROM 323 BILLION CADBURY SCHWEPPES SAID ITS 1992 EARNINGS REFLECT THE NEW ACCOUNTING RULES REGARDING PROFITS AND LOSSES ON THE SALE OF BUSINESSES 9303110161 930311 INTERNATIONAL BRIEF BAT INDUSTRIES PLC PRETAX PROFIT CLIMBED 68 IN 1992 DIVIDEND BOOSTED BA T INDUSTRIES PLC OF BRITAIN REPORTED THAT PRETAX PROFIT ROSE 68 IN 1992 TO 165 BILLION 237 BILLION HELPED BY FURTHER IMPROVEMENTS AT ITS TOBACCO OPERATIONS AND A STRONG RECOVERY IN ITS FINANCIAL SERVICES BUSINESS THE COMPANY RAISED IT DIVIDEND 11 TO 372 PENCE 535 CENTS A SHARE BOTH THE PROFIT NUMBERS AND THE DIVIDEND WERE HIGHER THAN EXPECTED CHAIRMAN PATRICK SHEEHY SAID THE STRATEGIC SPREAD OF BAT'S BUSINESS HAD HELPED PROTECT THE GROUP FROM RECESSION BA T CITED WHAT IT DESCRIBED AS ANOTHER FINE PERFORMANCE FROM ITS FARMERS GROUP INC INSURANCE COMPANY IN THE US WHERE EARNINGS ROSE 14 AND A STRONG RECOVERY AT ITS EAGLE STAR UK INSURANCE COMPANY PRETAX PROFIT FROM EAGLE STAR'S CONTINUING OPERATIONS TOTALED P15 MILLION COMPARED WITH A LOSS OF 303 MILLION IN 1991 9303110160 930311 WHO'S NEWS FARAH INC FARAH INC EL PASO TEXAS RICHARD C ALLENDER THE 47YEAROLD PRESIDENT AND CHIEF EXECUTIVE OF THIS PANTS MAKER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR ALLENDER SUCCEEDS THOMAS G WYMAN 69 A PRIVATE INVESTOR WHO REMAINS ON THE BOARD ADDITIONALLY JAMES C SWAIM 40 CHIEF FINANCIAL OFFICER WAS NAMED TO THE BOARD SUCCEEDING GEORGE J ZAHRINGER III 39 WHO RESIGNED FOR PERSONAL REASONS 9303110159 930311 FINANCING BUSINESS LCI INTERNATIONAL LCI INTERNATIONAL DUBLIN OHIO SAID WARBURG PINCUS CAPITAL CORP FINALIZED ITS 20 MILLION EQUITY INVESTMENT IN THE COMPANY LCI PREVIOUSLY SAID WARBURG PINCUS WOULD INVEST A MINIMUM OF 10 MILLION AND A MAXIMUM OF 20 MILLION DEPENDENT UPON OBTAINING VARIOUS NOTE HOLDER CONSENTS THAT WOULD PROVIDE INCREASED OPERATING AND FINANCING CAPABILITIES FOR THE TELECOMMUNICATIONS COMPANY PROCEEDS WILL BE USED TO EXPAND ITS ADVERTISING DEVELOP ITS NETWORK INTELLIGENCE AND FUND THE ACQUISITION OF LONG DISTANCE SERVICE INC BASED IN MCLEAN VA 9303110158 930311 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF GEORGE BRAGG 60 YEARS OLD RESIGNED AS VICE CHAIRMAN OF THIS MAKER OF COMPUTER DISK DRIVES BUT WILL REMAIN A DIRECTOR THE COMPANY SAID MR BRAGG WHO AT ONE POINT ALSO WAS INTERIM CHIEF FINANCIAL OFFICER AT WESTERN DIGITAL LED MUCH OF THE COMPANY'S RECENT DISPOSAL AND REALIGNMENT OF BUSINESSES 9303110157 930311 INTERNATIONAL BRIEF BRITISH AEROSPACE PLC EC PANEL REAFFIRMS ORDER FOR FIRM TO REPAY SUBSIDIES THE EUROPEAN COMMUNITY COMMISSION REITERATED ITS ORDER TO BRITISH AEROSPACE PLC TO RETURN TO THE BRITISH GOVERNMENT 444 MILLION 639 MILLION IN SUBSIDIES IT RECEIVED TO HELP FINANCE ITS PURCHASE OF AUTOMOBILE COMPANY ROVER GROUP THE COMMISSION REAFFIRMED ITS EARLIER DECISION THAT THE SUBSIDIES WERE ILLEGAL UNDER COMMUNITY COMPETITION RULES THE COMMISSION AIMS TO REVERSE A FEBRUARY 1992 DECISION BY THE EUROPEAN COURT OF JUSTICE THAT ANNULLED THE EARLIER COMMISSION DEMAND THAT THE AID BE REPAID THE COMMISSION SAID IT WOULD DEMAND THAT AID BE REPAID WITH INTEREST TO BE CALCULATED FROM AUGUST 1990 AT THE USUAL RATE GOVERNING STATE DEBTS 9303110156 930311 WHO'S NEWS LAMSON & SESSIONS CO LAMSON & SESSIONS CO CLEVELAND JAMES J ABEL 47 YEARS OLD SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WAS NAMED EXECUTIVE VICE PRESIDENT HE WILL CONTINUE AS CHIEF FINANCIAL OFFICER OF THIS MAKER OF THERMOPLASTIC ELECTRICAL CONDUIT WIRING DEVICES AND RELATED PRODUCTS FOR THE CONSTRUCTION CONSUMER POWER AND TELECOMMUNICATIONS MARKETS 9303110155 930311 FINANCING BUSINESS DAKA INTERNATIONAL INC DAKA INTERNATIONAL INC SAID IT IS SELLING 25 MILLION OF 7 CONVERTIBLE SUBORDINATED NOTES DUE MARCH 15 2003 AND 500000 COMMON SHARES AT 10 A SHARE IN A 30 MILLION COMBINED OFFERING THE NOTES CAN BE CONVERTED TO COMMON AT 12 A SHARE TUCKER ANTHONY INC IS THE LEAD UNDERWRITER PROCEEDS WILL BE USED TO REPAY EXISTING DEBT AND DEVELOP ADDITIONAL FUDDRUCKERS INC RESTAURANTS AND FOOD SERVICE OPERATIONS DAKA SAID IN DANVERS MASS 9303110154 930311 MESABA AVIATION TRAFFIC GAINS MINNEAPOLIS MESABA AVIATION INC SAID ITS FEBRUARY TRAFFIC ROSE 23 TO 186 MILLION REVENUE PASSENGER MILES FROM 151 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR AVAILABLE SEATS FILLED FELL TO 432 FROM 453 MESABA AVIATION WHICH OPERATES AS NORTHWEST AIRLINK UNDER A MARKETING PACT WITH NORTHWEST AIRLINES IS A UNIT OF AIRTRAN CORP 9303110153 930311 WHO'S NEWS INTERNATIONAL PAPER CO INTERNATIONAL PAPER CO PURCHASE NY THIS PRODUCER OF PAPER AND FOREST PRODUCTS NAMED JOYCE M NELSON STAFF VICE PRESIDENT AND DIRECTORINVESTMENTS EFFECTIVE MARCH 29 SHE SUCCEEDS MYRA R DURCKER WHO LEFT THE COMPANY MS NELSON PREVIOUSLY HAD BEEN CORPORATE TREASURER WITH TIMES MIRROR CO 9303110152 930311 INTERNATIONAL BRIEF GENERAL ELECTRIC CO FIRM'S HUNGARY UNIT VOWS TO CUT STAFF SPEED OUTPUT DESPITE UNION OPPOSITION GENERAL ELECTRIC CO'S TUNGSRAM LIGHTBULB SUBSIDIARY IN HUNGARY SAID IT WILL CONTINUE TO CUT WORKERS AND SPEED PRODUCTION IN AN EFFORT TO REBOUND FROM LOSSES OF MORE THAN 11 BILLION FORINTS 1288 MILLION LAST YEAR SPEED AND PRODUCTIVITY ARE KEY FACTORS SAID CHARLES P PIEPER CHIEF EXECUTIVE OFFICER OF GE LIGHTING EUROPE & TUNGSRAM IF YOU CAN'T GO FASTER AND TAKE THE COST DOWN THERE'S NO FUTURE MR PIEPER SAID PLANS FOR SALVAGING TUNGSRAM'S FUTURE INCLUDES FURTHER REDUCTIONS IN ITS WORK FORCE BY ABOUT 900 EMPLOYEES HE SAID EMPLOYMENT IS NOW 10200 DOWN FROM 18000 IN EARLY 1990 HE SAID THE CUTS REPRESENT A 45 REDUCTION IN THREE YEARS GE OWNS 75 OF TUNGSRAM AND HAS COMMITTED 350 MILLION TO TUNGSRAM THUS FAR 9303110151 930311 BUSINESS BRIEF BOB EVANS FARMS INC FIRM EXPECTS HIGHER PROFIT DESPITE LOFTY HOG PRICES BOB EVANS FARMS INC EXPECTS AN INCREASE IN EARNINGS FOR THE FISCAL FOURTH QUARTER DESPITE A PROFIT PINCH ON SAUSAGE PRODUCTS CAUSED BY HIGH HOG PRICES DANIEL E EVANS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN CLEVELAND RESTAURANT SALES IN FEBRUARY WERE STRONG MR EVANS SAID AND HIGHER PROFIT FROM THE RESTAURANT GROUP IS EXPECTED TO MORE THAN OFFSET LOWER EARNINGS FROM SAUSAGE SOLD THROUGH SUPERMARKETS MANAGEMENT IS COMFORTABLE WITH ANALYST EARNINGS ESTIMATES OF 103 A SHARE TO 105 A SHARE FOR FISCAL 1993 UP FROM 393 MILLION OR 94 CENTS A SHARE EARNED IN THE YEAR ENDED APRIL 24 1992 SAID KEITH P BRADBURY GROUP VICE PRESIDENT FINANCE AND ADMINISTRATION IN AN INTERVIEW HE SAID HE PREFERRED THE LOW END OF THAT RANGE THAT ESTIMATE WOULD INDICATE FOURTHQUARTER NET IN THE RANGE OF 25 CENTS TO 27 CENTS A SHARE COMPARED WITH 23 CENTS A SHARE IN THE FISCAL 1992 FOURTH QUARTER 9303110150 930311 RETAILING MEGASTORES THAT ENTERTAIN AND EDUCATE MAY SIGNAL THE FUTURE OF MERCHANDISING BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO ON A WEEKEND VISIT HERE ADAM ANGST SAW SOME FILMS EXAMINED OLD ARTIFACTS AND LEARNED A BIT OF HISTORY THE PEORIA ILL RESIDENT WASN'T TOURING CHICAGO'S MUSEUMS HE HAD STOPPED AT NIKE TOWN A THREESTORY RETAIL STORE THAT DISPLAYS ITS PRODUCTS AMID LIFESIZED MICHAEL JORDAN AND BO JACKSON STATUES AND GLASSEDIN RELICS LIKE NOLAN RYAN'S SHOES A HALFCOURT BASKETBALL COURT LETS VISITORS TRY OUT NIKE SHOES WHICH ARE DELIVERED THROUGH CLEAR STAR TREKLIKE TUBES OH AND NIKE TOWN SELLS THINGS TOO THIS IS NOT YOUR TRADITIONAL STORE SAYS MR ANGST WHO DISLIKES SHOPPING AND WAS AMAZED HE SPENT NEARLY 45 MINUTES IN THE STORE ON IMPULSE HE BOUGHT A PAIR OF 45 GOLF SHORTS YOU COULD LOOK AROUND FOREVER HE SAYS UNLIKE MOST OTHER STORES THAT LINE THE FAMOUS MICHIGAN AVENUE PROMENADE HERE NIKE TOWN'S MISSION IS MUCH GREATER THAN SIMPLY DISPLAYING ITS WARES IT'S OUT TO ENTERTAIN CUSTOMERS AND TO INFORM THEM ABOUT NIKE INC'S ATHLETIC SHOES AND OTHER MERCHANDISE AND ITS FORMAT WHICH COMBINES ELEMENTS FOUND IN THEATERS MUSEUMS AND AMUSEMENT PARKS IS CROPPING UP ELSEWHERE JUST ON THIS MAGNIFICENT MILE SONY CORP AND FAO SCHWARZ HAVE ALSO OPENED EXTRAVAGANT RETAIL OUTLETS THAT OFTEN SEEM MORE APPEALING THAN THE GOODS THEY ARE TRYING TO SELL AND IN OCTOBER ON NEW YORK'S FIFTH AVENUE WARNER BROTHERS PLANS TO OPEN ITS LARGEST STORE NEXT TO SUCH POSH MERCHANTS AS TIFFANY AND BULGARI THE STORE WILL RESEMBLE A MOVIESTUDIO BACK LOT AND GIANT BATMAN AND SUPERMAN SCULPTURES WILL BURST FROM THE WALL THAT RETAILERS ARE EMBRACING THIS UNCONVENTIONAL MERCHANDISING APPROACH ISN'T SURPRISING IN TODAY'S FIERCELY COMPETITIVE INDUSTRY THEY'RE STRUGGLING TO FIND FRESH WAYS TO WOO SHOPPERS AT THE SAME TIME CONSUMERS INCREASINGLY THINK OF SHOPPING AS A CHORE YANKELOVICH PARTNERS A MARKETRESEARCH FIRM FOUND THAT 31 OF SHOPPERS SURVEYED IN 1992 ENJOYED BUYING CLOTHES DOWN FROM 40 IN 1989 MOST OF THE OTHERS SAID SHOPPING WAS STRESSFUL AS A RESULT MERCHANTS WHO OFFER SOMETHING UNIQUE TO OBSERVE TOUCH TASTE OR INTERACT WITH MAY SIGNAL RETAILING'S FUTURE THE OLD PRESENTATIONS ARE WORN OUT CONTENDS TED PETERSON PRESIDENT OF PETERSON ASSOCIATES A RETAIL STORE DESIGNER HE MAINTAINS THAT SHOPPERS WHO WERE REARED ON TELEVISION LIKE A LOT OF ACTION HE AND OTHER EXPERTS CONCEDE THAT THIS LETUSENTERTAINYOU FORMAT IS EXPENSIVE TO EXECUTE AND HOLDS DOWN PROFIT MARGINS AND ALTHOUGH THE TRAFFIC AT THESE NONTRADITIONAL STORES IS ENVIABLE NOW IT'S UNCLEAR HOW LONG THE APPEAL WILL LAST STILL MORETRADITIONAL RETAILERS ARE LIKELY TO PINCH IDEAS FROM THESE STORES AMONG THE RETAILERS WHO CAN MORE EASILY ADOPT THIS SHOWCASE APPROACH ARE TOY STORES AT THE THREESTORY FAO SCHWARZ STORE THAT OPENED HERE LAST SEPTEMBER SHOPPERS LINE UP ON MANY WEEKENDS JUST TO GET IN THEY ARE GREETED AT THE DOOR BY AN EMPLOYEE WEARING A CURIOUS GEORGE MONKEY COSTUME HUGE STUFFED ANIMALS HANG EVERYWHERE A KANGAROO BOXES A RAGGEDY ANN DOLL SWINGS A GIANT TREE BLINKS ITS GREEN EYES AND TELLS CUSTOMERS FAO SCHWARZ IS GREAT TO EXPLORE WITH THINGS TO TOUCH AND FEEL AND MORE THIS IS THE GREATEST PLACE EVER SAYS JAMIE CHANDLER AGE EIGHT BUT MANY CUSTOMERS AREN'T TOY BUYERS THEY'RE SIMPLY ATTRACTED BY THE BIG COLORFUL MOVING OBJECTS THEY SEE THROUGH THE WINDOWS IF MORE STORES WERE LIKE THIS I'D LOVE TO GO SHOPPING IT'S ACTUALLY A GOOD WAY TO SPEND YOUR TIME SAYS ROBERT GROSSMAN A COMPUTER COMPANY CONSULTANT WHO CLAIMS HE HASN'T SHOPPED FOR ANYTHING BUT BOOKS IN TWO YEARS BECAUSE IT'S BORING AND ANNOYING A SPOKESWOMAN FOR FAO SCHWARZ WHICH OPENED THE FIRST OF FOUR SUCH STORES IN BOSTON IN 1987 WON'T DISCLOSE SALES BUT SAYS THE STORES ARE PROFITABLE MORE THAN 60000 PEOPLE A DAY VISIT THE NEW YORK STORE AT CHRISTMAS THE DISNEY STORE HAS SIMILAR APPEAL IT FEATURES TWO BIGSCREEN TELEVISIONS THAT SHOW POPULAR WALT DISNEY FILMS MECHANICAL DISNEY CHARACTERS LINE THE WALLS WATTS WACKER THE MANAGING PARTNER OF YANKELOVICH PARTNERS SAYS HE WAS PULLED INTO THE STORE BY HIS TWOYEAROLD DAUGHTER WHO PLOPPED DOWN IN FRONT OF A SCREEN SHOWING 101 DALMATIANS THE ONLY WAY TO GET HER OUT WAS TO BUY TWO LITTLE STUFFED PUPPIES HE SAYS WALT DISNEY CO WHICH IS BASED IN BURBANK CALIF PULLED A LOT OF IDEAS FOR THE STORES WHICH IT ROLLED OUT IN 1987 FROM ITS AMUSEMENT PARKS A SPOKESMAN SAYS DISNEY'S 193 STORES WORLDWIDE CONTINUALLY SELL ABOUT THREE TIMES AS MUCH PER SQUARE FOOT AS THE NATIONAL AVERAGE FOR SPECIALTY RETAILERS THE COMPANY PLANS TO OPEN AT LEAST 25 MORE STORES THIS YEAR COMPANIES LIKE NIKE AND SONY DON'T HAVE TO WORRY AS MUCH AS TRADITIONAL RETAILERS ABOUT REAPING BIG SALES AT THEIR STORES BECAUSE THEY MAKE MONEY SELLING TO DEALERS THEY MAINLY USE THE STORES TO BOOST THEIR IMAGE AND INFORM PEOPLE ABOUT THEIR PRODUCTS NIKE'S DIRECTOR OF DESIGN GORDON THOMPSON HAD NEVER DESIGNED A RETAIL STORE BEFORE I DIDN'T REALLY LOOK AT WHAT WAS OUT THERE I WANTED TO DO SOMETHING DIFFERENT HE SAYS THE STORE IS PACKED WITH PARAPHERNALIA MUCH OF IT NIKE STUFF TIED TO ATHLETIC STARS IN ITS HISTORY OF AIR EXHIBIT THE STORE EXPLAINS THOSE POCKETS OF AIR ON THE BOTTOM OF ITS SHOES THE MOST BLATANT MARKETING PLOY A VIDEO THEATER THAT PLAYS NIKE COMMERCIALS AND SHORT FILMS FEATURING NIKE GEAR NIKE OFFICIALS WON'T DISCLOSE SALES OR HOW MUCH IT PAID TO BUILD MR THOMPSON'S CREATION BUT THE STORE WHICH OPENED LAST JULY ATTRACTS 5000 TO 6000 VISITORS DAILY ON WEEKENDS COMPARED WITH AN AVERAGE 3600 PEOPLE WHO VISIT THE ART INSTITUTE OF CHICAGO ALSO LOCATED ON MICHIGAN AVENUE LOCAL SHOPPERS LIKE STEPHANIE BAUM REGULARLY TAKE OUTOFTOWN GUESTS THERE NIKE ALSO HAS A SMALLER STORE IN PORTLAND ORE NEAR ITS BEAVERTON ORE HEADQUARTERS AND PLANS THIS YEAR TO OPEN STORES IN ORANGE COUNTY CALIF AND ATLANTA AT THE 15MONTHOLD SONY STORE SALES PERSONNEL AND BIG EASYTOREAD SIGNS TEACH CONSUMERS ABOUT SONY PRODUCTS REPLICAS OF A LIVING ROOM BEDROOM HOME OFFICE AND KITCHEN ARE SET UP SO THAT CUSTOMERS CAN SEE HOW SONY PRODUCTS CAN BE USED IN THEIR HOMES MANY PEOPLE NEVER READ THEIR INSTRUCTION MANUALS EXPLAINS JOHN BRIESCH PRESIDENT OF THE CONSUMER PRODUCTS GROUP MR BRIESCH SAYS SALES PERSONNEL DON'T OPERATE ON COMMISSION AND ARE THERE MAINLY TO ANSWER QUESTIONS IT'S VERY DIFFERENT FROM A RETAILER BECAUSE A RETAILER MUST CREATE SALES HE SAYS AT THE STORE WHICH AVERAGES 40000 VISITORS A MONTH MR BRIESCH WOULD SAY ONLY THAT SALES ARE LIVING UP TO OUR EXPECTATIONS AND THE COMPANY PLANS TO OPEN MORE SUCH STORES THE EXPERIMENTAL FORMATS ARE SO NEW THAT IT'S TOUGH TO PROJECT HOW THEY'LL DO TO HELP ANSWER THAT QUESTION RETAIL ANALYSTS ARE WATCHING THE GARGANTUAN MALL OF AMERICA WHICH OPENED LAST AUGUST IN BLOOMINGTON MINN IN ADDITION TO ABOUT 360 RETAIL STORES THE 42 MILLIONSQUAREFOOT MALL OFFERS A THEME PARK WITH MORE THAN 50 RIDES A SINGALONG BAR AND CELLULARPHONE RENTAL SERVICE SALES SO FAR HAVE BEEN WELL ABOVE OUR PROJECTIONS WHICH ARE 650 MILLION FOR THE FIRST YEAR ENDING AUGUST 1993 A SPOKESMAN SAYS ELSEWHERE ANALYSTS ARE FOLLOWING HOW TANDY CORP FARES WITH ITS TWO INCREDIBLE UNIVERSE MEGASTORES BESIDES A HUGE SELECTION OF CONSUMER ELECTRONICS AND HOME APPLIANCES THE ARLINGTON TEXAS AND PORTLAND ORE STORES FEATURE LARGESCREEN TV THEATERS AND KARAOKE BARS IT'S POSSIBLE THAT SUCH ELABORATE FORMATS WILL OVERWHELM SHOPPERS JENNIFER GUNNERSON WHO WORKS NEAR NIKE TOWN HERE COMPLAINS THAT THE CROWDS MAKE SHOPPING MORE DIFFICULT IF I NEED TO BUY SOMETHING I WANT TO BE ABLE TO FIND IT RIGHT AWAY SHE SAYS STILL MS GUNNERSON TOOK HER AUNT TO FAO SCHWARZ ONE RECENT SATURDAY AND THE TWO LINGERED AMONG THRONGS OF PEOPLE AND PLAYED WITH THE TALKING STUFFED ANIMALS IT'S A CUTE PLACE SHE CONCEDES 9303110149 930311 GENEVA STEEL PLANS PRICE INCREASE VINEYARD UTAH GENEVA STEEL FOLLOWING ITS COMPETITORS SAID IT WILL RAISE PRICES 5 OR 20 A TON FOR HOTROLLED SHEET AND COIL PRODUCTS AND STRIP MILL PLATE PRODUCTS EFFECTIVE JULY 4 THE PRICE INCREASES ARE IN ADDITION TO INCREASES ANNOUNCED ON FEB 17 AND JAN 9303110148 930311 BUSINESS BRIEF AAR CORP LOSS OF 57 MILLION EXPECTED FOR FIRM'S FISCAL 3RD QUARTER AAR CORP SAID IT EXPECTS A LOSS OF 57 MILLION OR 36 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED FEB 28 AFTER A PRETAX CHARGE OF 11 MILLION IN THE YEAREARLIER QUARTER THE ELK GROVE VILLAGE ILL SUPPLIER OF AEROSPACE AND AVIATION PRODUCTS AND SERVICES EARNED 29 MILLION OR 18 CENTS A SHARE SALES ARE EXPECTED TO DROP 21 TO 83 MILLION FROM 1049 MILLION ON AN OPERATING BASIS AAR SAID PROFIT IS EXPECTED TO BE 200000 PRIMARILY DUE TO LOWER SALES VOLUME ACROSS THE COMPANY'S BUSINESS ACTIVITIES THE COMPANY SAID THE THIRD QUARTER STARTED STRONG BUT FEBRUARY SALES SLOWED SIGNIFICANTLY IN SOME AREAS THE LOSS AND DELAY OF SALES FOR LARGER COMPONENTS PARTICULARLY ENGINES EXACERBATED THE IMPACT ON EARNINGS EVEN WHILE GROSS MARGINS IMPROVED AAR SAID 9303110147 930311 INTERNATIONAL AS CASE AGAINST KANEMARU UNFOLDS MAGNITUDE OF ALLEGED TAX EVASION IRKS JAPANESE CITIZENS BY MASAYOSHI KANABAYASHI AND JACOB M SCHLESINGER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO OUTSIDE A NEIGHBORHOOD TAX OFFICE A POSTER URGES CITIZENS TO PAY THEIR INCOME TAXES AHEAD OF THE MARCH 15 DEADLINE SATORU KOJIMA A 30YEAROLD REAL ESTATE COMPANY EMPLOYEE DUTIFULLY DID SO THIS WEEK BUT NOT BEFORE LETTING OFF STEAM ABOUT A JAPANESE BIGWIG WHO NOW STANDS ACCUSED OF SHIRKING THAT RESPONSIBILITY IN THE GRANDEST AND MOST SORDID OF WAYS IT'S NATURAL HE GOT ARRESTED MR KOJIMA SAID OF SHIN KANEMARU ONCE JAPAN'S MOST POWERFUL POLITICIAN AND NOW UNDER DETENTION ON SUSPICION OF EVADING HUNDREDS OF MILLIONS OF YEN IN TAXES THE AMOUNT IS SO MUCH SAYS MR KOJIMA EVEN BEFORE MR KANEMARU'S ARREST THE JAPANESE PUBLIC'S FAMOUS PATIENCE FOR POLITICAL CORRUPTION WAS WEARING THIN BUT MR KANEMARU'S CASE IS PARTICULARLY GALLING AND NOT JUST BECAUSE HE REIGNED FOR YEARS AS THE CHIEF FIXER OF THE LONGTIME RULING LIBERAL DEMOCRATIC PARTY THE MATTER UNDERSCORES TWO OTHER GRUDGES WIDELY HELD BY JAPANESE AGAINST THE NATION'S ELITE THAT THEY DON'T PAY THEIR FAIR SHARE OF TAXES AND THAT THEY GAINED MORE THAN THEIR FAIR SHARE OF THE BOOTY FROM JAPAN'S NOWCOLLAPSED ECONOMIC BUBBLE OF THE LATE 1980S IT'S NECESSARY TO THOROUGHLY INVESTIGATE PEOPLE WHO LEAD TOO AFFLUENT A LIFE IN COMPARISON WITH THE TAXES THEY PAY COMMENTATOR KOHTARO TAWARA WROTE IN THE SANKEI SHIMBUN NEWSPAPER THIS WEEK THAT INCLUDES THOSE WHO OWN MANSIONS YACHTS AND EXPENSIVE IMPORTED CARS GOLF FANATICS AND THOSE WHO FREQUENT OVERSEAS RESORTS HE SAID THE PROSECUTORS' OFFICE HAS REFUSED TO CONFIRM FOR THE WALL STREET JOURNAL ANY OF THE DETAILS WIDELY REPORTED IN THE JAPANESE MEDIA BUT NEW CLAIMS ARE PUBLISHED DAILY ABOUT MR KANEMARU'S SECRET TREASURE TROVES AS OF THIS MORNING THE REPORTED AMOUNT OF SUSPECT ASSETS LINKED TO THE MAN WHO PICKED PRIME MINISTERS AND MASTERMINDED JAPAN'S NOTORIOUS MONEY POLITICS HAD REACHED AS HIGH AS 67 BILLION YEN OR ALMOST 57 MILLION ONE OF THE LATEST NEWSPAPER REPORTS SAYS PROSECUTORS FOUND FOUR BILLION YEN IN CASH GOLD AND BANK DEBENTURES IN A SAFE HIDDEN IN A ROOM RENTED BY MR KANEMARU'S SON THE PROSECUTORS ARE ALSO FOLLOWING A TRAIL BACK TO MR KANEMARU'S LATE WIFE THE ASAHI SHIMBUN SAID SHE ONCE HELD TWO BILLION YEN IN THE SAME KIND OF BANK DEBENTURES WHICH DON'T REQUIRE REGISTRATION IN THE HOLDER'S NAME AND ARE OFTEN USED FOR DODGING TAXES IN JAPAN NEWSPAPERS AND TV STATIONS ALSO HAVE REPORTED THAT THE PROSECUTORS SEIZED ABOUT 220 POUNDS OF GOLD BARS AND TENS OF MILLIONS OF YEN IN CASH FROM ANOTHER SECRET SAFE IN MR KANEMARU'S OFFICE TODAY'S MAINICHI SHIMBUN SAYS 100 PAINTINGS AND ANTIQUES WERE DISCOVERED IN MR KANEMARU'S TWO HOMES ONE NEWSPAPER REPORTED THAT MR KANEMARU BOUGHT SO MANY OF THE ANONYMOUS DEBENTURES FROM NIPPON CREDIT BANK THAT THE BANK ASSIGNED A SPECIAL STAFF TO THE ACCOUNT A BANK SPOKESMAN WHILE ACKNOWLEDGING THE SPECIAL STAFF SAID MR KANEMARU WASN'T TREATED ANY BETTER THAN OTHER CUSTOMERS A SPOKESMAN FOR OKASAN SECURITIES CO CONFIRMED THAT PROSECUTORS THIS WEEK SEARCHED ITS HEADQUARTERS AND THE HOMES OF THREE EMPLOYEES IN CONNECTION WITH THE CASE THE NIHON KEIZAI SHIMBUN REPORTED THAT MR KANEMARU IS SUSPECTED OF DOING BOND BUSINESS WITH OKASAN MR KANEMARU IS BELIEVED TO HAVE GOTTEN THE MONEY FROM CAMPAIGN CONTRIBUTIONS IT ISN'T CLEAR HOW MUCH IF ANY WAS FOR PERSONAL GAIN AND HOW MUCH WAS DESTINED TO MEET THE SPECTACULARLY HIGH COST OF JAPANESE POLITICS AN OFFICIAL AT THE OFFICE OF MR KANEMARU'S ATTORNEY SAID MR KANEMARU'S LAWYER HASN'T MADE ANY PUBLIC COMMENTS ON THE ALLEGATIONS BECAUSE HIS CLIENT HASN'T BEEN FORMALLY INDICTED AN INDICTMENT ON AT LEAST SOME OF THE SUSPECTED WRONGDOINGS IS EXPECTED THIS WEEK MR KANEMARU'S DIZZYING DESCENT BEGAN IN AUGUST WHEN HE ADMITTED TAKING 500 MILLION YEN IN ILLEGAL CAMPAIGN CONTRIBUTIONS SOME OF IT REPORTEDLY DELIVERED IN A SHOPPING CART FULL OF CASH MR KANEMARU ULTIMATELY RESIGNED FROM PARLIAMENT BUT WAS WIDELY THOUGHT TO HAVE BEEN LET OFF EASY BY PROSECUTORS WHO ONLY FINED HIM THE EQUIVALENT OF ABOUT 1700 THE NEW TAXEVASION ACCUSATIONS APPEAR TO HAVE NO CONNECTION TO THE PREVIOUS SCANDAL PERHAPS BECAUSE OF THE SEVERE PUBLIC CLAMOR OVER LAST SUMMER'S CASE THE PROSECUTORS NOW ARE CLAIMING THAT THE 78YEAROLD MR KANEMARU IS BEING TREATED LIKE ANY CRIMINAL SUSPECT THEY HAVEN'T DISCLOSED ANY DETAILS ABOUT HIS INCARCERATION BUT THE JAPANESE PRESS IS REPORTING AT GREAT LENGTH JUST HOW DETAINEES ARE USUALLY TREATED THAT APPARENTLY INCLUDES BEING STRIPSEARCHED THEN HELD IN A TINY CELL WITH JUST A FUTON MATTRESS AND A TOILET ALL IN FULL VIEW OF PRISON GUARDS AND FIRSTTIME DETAINEES ARE EXPECTED TO ADDRESS WARDENS AS SENSEI OR TEACHER A TERM OF RESPECT RESERVED FOR IMPORTANT PEOPLE SUCH AS POWERFUL POLITICIANS LIKE MR KANEMARU ONCE WAS EVEN IF ONLY SOME OF THE ALLEGATIONS LEAKED TO THE PRESS PROVE TRUE MR KANEMARU COULD WELL BECOME THE BIGGEST ACCUSED TAX CHEAT IN JAPANESE HISTORY BUT HE FOLLOWS A GRAND TRADITION JAPAN'S HIGH TAX RATES FOR UPPERINCOME BRACKETS MAKE DODGING LEVIES A COMMON PASTIME OF THE AFFLUENT A YEAR AGO A TOP EXECUTIVE AT A REAL ESTATE COMPANY WAS CONVICTED OF EVADING 339 BILLION YEN IN INCOME TAXES THE CURRENT RECORD IN A TAXEVASION CASE HE WAS SENTENCED TO FOUR YEARS IN PRISON AND FINED 500 MILLION YEN EVERY YEAR THE NATIONAL TAX AGENCY ISSUES A SPECIAL REPORT DETAILING SUCH TRANSGRESSIONS LAST YEAR'S REPORT CITED CASES OF INCOME HIDDEN IN SAFES UNDER BEDROOMCLOSET FLOORBOARDS IN GUITARS IN FREEZERS IN GOLF CLUB BAGS AND ABANDONED CARS THE TOTAL AMOUNT OF UNREPORTED TAXABLE INCOME DETECTED BY THE AGENCY REACHED 92 BILLION YEN FOR THE YEAR UP 21 FROM THE YEAR BEFORE DODGING TAXES BECAME SUCH AN OBSESSION DURING THE 1980S THAT THE ACCLAIMED FILM DIRECTOR JUZO ITAMI SCORED TWO HITS WITH A TAXING WOMAN AND A TAXING WOMAN'S RETURN ABOUT A TAX COLLECTOR'S EFFORTS TO HUNT DOWN FRAUD SOME OF MR ITAMI'S FICTIONAL TOUCHES NOW SEEM UNCANNILY CLOSE TO THOSE NOW FILLING THE NEWSPAPERS INCLUDING SECRET CACHES AND CORRUPT POLITICIANS 9303110146 930311 NICOR SETS STOCK SPLIT NAPERVILLE ILL NICOR INC ANNOUNCED A 2FOR1 STOCK SPLIT A DIVIDEND INCREASE AND PLANS TO REPURCHASE COMMON STOCK ON THE OPEN MARKET THE STOCK SPLIT WILL BE FOR STOCK OF RECORD APRIL 1 WITH DISTRIBUTION TO BE MADE APRIL 26 THE BOARD DECLARED A QUARTERLY COMMON STOCK DIVIDEND ON THE SPLIT SHARES OF 305 CENTS A SHARE 61 CENTS ON A PRESPLIT BASIS PAYABLE MAY 1 TO STOCK OF RECORD APRIL 1 THE UTILITY HAS BEEN PAYING 59 CENTS A SHARE NICOR SAID IT ALSO WILL BUY BACK COMMON SHARES WITH AN AGGREGATE MARKET VALUE OF UP TO 50 MILLION 9303110145 930311 INTERNATIONAL BRIEF NKK CORP JAPANESE FIRM PLANS TO CUT STAFF BY 15 OVER 3 YEARS NKK CORP A MAJOR JAPANESE STEELMAKER ANNOUNCED A THREEYEAR PLAN THAT INCLUDES A 15 CUT IN ITS WORK FORCE AND OTHER MEASURES FOR RESTRUCTURING DURING THE FISCAL YEAR THAT BEGINS APRIL 1 AND THE FOLLOWING TWO YEARS NKK WILL REDUCE THE NUMBER OF ITS EMPLOYEES BY 3200 TO 19000 WITH 2600 TO BE CUT IN THE MAINLINE STEEL DIVISION TO BRING THAT WORK FORCE TO 12100 EMPLOYEES THE COMPANY SAYS THE PLAN IS ACHIEVABLE THROUGH ATTRITION AND THE DISPATCHING OF EMPLOYEES TO AFFILIATED COMPANIES NKK ALSO PLANS TO CUT INVESTMENT IN PLANTS AND EQUIPMENT BY 40 DURING THE COMING THREE YEARS FROM ABOUT 440 BILLION YEN 374 BILLION SPENT IN THE PRECEDING THREEYEAR PERIOD AN NKK SPOKESMAN SAID 9303110144 930311 APACHE FILES TO OFFER SHARES HOUSTON APACHE CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 53 MILLION COMMON SHARES APACHE SAID IT INTENDS TO USE THE NET PROCEEDS TO REDUCE BANK DEBT INCURRED IN CONNECTION WITH RECENT ACQUISITIONS AND FOR OTHER GENERAL CORPORATE PURPOSES THE SHARES BEING OFFERED WILL REPRESENT 10 OF APACHE'S TOTAL SHARES OUTSTANDING OF THE COMMON STOCK TO BE OFFERED 300000 SHARES ORIGINALLY ISSUED TO AMOCO PRODUCTION CO IN CONNECTION WITH APACHE'S PURCHASE OF A WHOLLY OWNED UNIT OF AMOCO'S ARE BEING SOLD BY AMOCO FOUNDATION INC APACHE IS AN INDEPENDENT ENERGY COMPANY THAT EXPLORES DEVELOPS AND PRODUCES NATURAL GAS AND CRUDE OIL UNDERWRITERS FOR THE OFFERING INCLUDE MERRILL LYNCH & CO FIRST BOSTON CORP SG WARBURG SECURITIES AND PETRIE PARKMAN & CO 9303110143 930311 TALISMAN OFFERS TO ACQUIRE ENCOR IN A STOCK SWAP BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TALISMAN ENERGY INC HOPING TO NEARLY DOUBLE ITS OIL AND GAS ASSETS AND PRODUCTION OFFERED TO ACQUIRE ENCOR INC IN A STOCK SWAP WITH AN INDICATED VALUE OF 268 MILLION CANADIAN DOLLARS US2153 MILLION THE MOVE MARKS AN END TO ENCOR'S STRUGGLE TO RESTRUCTURE ITS OPERATIONS AND FINANCES BEGUN LAST SUMMER WHEN THE DEBTLADEN COMPANY BREACHED LOAN COVENANTS AND ANNOUNCED IT WOULD SEEK A MERGER PARTNER WHILE ENCOR HAS SUCCEEDED IN CUTTING ITS BANK DEBT BY MORE THAN C250 MILLION TO ABOUT C130 MILLION THROUGH ASSET SALES ITS OPERATIONS HAVE REMAINED CONSTRAINED AND ITS SHARE PRICE HAS LANGUISHED WELL BELOW C1 TALISMAN PREVIOUSLY NAMED BP CANADA INC PLANS TO ISSUE A TOTAL OF 142 MILLION COMMON SHARES IN EXCHANGE FOR ENCOR COMMON AND PREFERRED SHARES IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY TALISMAN SHARES CLOSED AT C18875 DOWN 625 CANADIAN CENTS ENCOR'S SHARES ROSE SEVEN CANADIAN CENTS TO END THE DAY AT 33 CANADIAN CENTS IN TORONTO STOCK EXCHANGE TRADING TALISMAN SAID IT WILL OFFER ONE COMMON SHARE FOR EVERY 60 ENCOR SHARES HELD AND ISSUE 115 MILLION COMMON SHARES TO ACQUIRE THE CONVERTIBLE PREFERRED SHARES WHICH ARE ALL OWNED BY BCE INC A MONTREAL HOLDING COMPANY BCE WHICH ALSO OWNS 186 OF ENCOR'S COMMON SHARES AND PLANS TO VOTE IN FAVOR OF THE PROPOSAL WOULD EMERGE FROM THE TRANSACTION AS TALISMAN'S LARGEST SHAREHOLDER HOLDING 19 OF THAT COMPANY'S SHARES TALISMAN HAS BEEN ON THE ACQUISITION TRAIL SINCE LATE LAST YEAR IN SEARCH OF OIL AND GAS ASSETS TO COMPLEMENT ITS CORE HOLDINGS IN CENTRAL ALBERTA AND NORTHERN BRITISH COLUMBIA ENCOR AND TALISMAN HAVE A LARGE NUMBER OF COMMON PROPERTY HOLDINGS IN AREAS SUCH AS SASKATCHEWAN TALISMAN SAYS AND ALSO HAVE HOLDINGS IN THE MONKMANSUKUNKA REGION OF BRITISH COLUMBIA WHERE TALISMAN HAS MADE SOME LARGE NATURAL GAS DISCOVERIES WE'RE BUYING SOME GREAT PRODUCTION AT LESS THAN C4 PER BARREL OF OIL EQUIVALENT SAID RUTH ANNE YARDLEY A SPOKESWOMAN FOR TALISMAN SUSAN EVANS VICE PRESIDENT OF ENCOR SAID THAT COMPANY'S BOARD WILL STUDY THE PROPOSAL SOON SHE DECLINED FURTHER COMMENT ON THE TRANSACTION BUT TALISMAN OFFICIALS DESCRIBED THE PROPOSAL AS FRIENDLY IN 1992 TALISMAN'S NATURAL GAS PRODUCTION AVERAGED 210 MILLION CUBIC FEET A DAY WHILE ITS CRUDE OIL AND GAS LIQUIDS PRODUCTION AVERAGED 16402 BARRELS DAILY ENCOR REPORTED NATURAL GAS PRODUCTION OF ABOUT 212 MILLION CUBIC FEET DAILY AND OIL AND GAS LIQUIDS PRODUCTION WHICH AVERAGED 30312 BARRELS DAILY ANALYSTS NOTE THAT THE ACQUISITION OF ENCOR'S ASSETS WOULD GIVE TALISMAN A STEADY FLOW OF CASH FROM CRUDE OIL AND GAS LIQUIDS PRODUCTION WHILE THE COMPANY WAITS FOR THE BULK OF ITS BRITISH COLUMBIA FINDS TO COME ON STREAM IN EARLY 1995 THIS IS A PRETTY GOOD DEAL FOR TALISMAN SAID DENIS MOTE AN ANALYST WITH MAISON PLACEMENTS CANADA IN TORONTO THERE'S A LOT OF POTENTIAL IN THE ASSETS THAT TALISMAN COULD DEVELOP AND OTHERS EVEN ENCOR COULDN'T DICK FRASER AN ANALYST AT SANWA MCCARTHY IN TORONTO SAID TALISMAN'S CASH FLOW COULD REACH C270 A SHARE THIS YEAR IF THE ACQUISITION PROCEEDS HIS PREVIOUS CASH FLOW ESTIMATE FOR THE COMPANY WAS C205 A SHARE TALISMAN WHICH IS PRACTICALLY DEBTFREE WOULD TAKE ON ENCOR'S C130 MILLION BANK DEBT AS WELL AS C100 MILLION OF CONVERTIBLE DEBENTURE OBLIGATIONS UNDER THE TERMS OF THE PROPOSAL TALISMAN'S MS YARDLEY SAID THE COMPANY WOULD BE ABLE TO PAY OFF ALL DEBT INCURRED WITHIN THREE YEARS TALISMAN SAID THE DEBENTURES WILL BE EXCHANGEABLE INTO TALISMAN SHARES ON THE BASIS OF 595 TALISMAN COMMON SHARES PER C1000 OF CONVERTIBLE DEBENTURES WHICH COULD RESULT IN THE ISSUANCE OF A FURTHER C112 MILLION OF COMMON SHARES TALISMAN AND ENCOR BOTH BASED IN CALGARY ALBERTA ARE OIL AND GAS EXPLORATION AND PRODUCTION CONCERNS 9303110142 930311 EXGIS MAY BE ORDERED TO SALUTE IF THIS CHANNEL GOES INTERACTIVE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL WITH LOOMING DEFENSE DEPARTMENT CUTS ARMY OFFICERS MIGHT WANT TO FOLLOW LT COL STEVE TITUNIK'S FOOTSTEPS AND GO TO HOLLYWOOD OR AT LEAST TO CABLE TELEVISION IN KENTUCKY THE RECENTLY RETIRED PENTAGON EMPLOYEE HAS JOINED MILITARY CHANNEL INC A CABLETV NETWORK WHICH PLANS TO BEGIN BROADCASTING NEXT JANUARY THE 47YEAROLD MR TITUNIK LEFT A PENTAGON JOB WHERE HE WORKED WITH NETWORK TV AND FILM CREWS MAKING DOCUMENTARIES ABOUT THE MILITARY NOW AS A VICE PRESIDENT AT THE LOUISVILLEBASED MILITARY CHANNEL THE 24YEAR ARMY VETERAN IS IN CHARGE OF PROGRAMMING AND ALREADY HAS SHOWS IN THE WORKS FOR STARTERS MR TITUNIK BELIEVES HIS EXERCISE PROGRAM WILL BE A HIT FOR THOSE ATHLETES WHO DESPISE THE UBIQUITOUS TV AEROBICS SHOWS STARRING SPANDEXCLAD NYMPHS AND HUNKS PEOPLE AT HOME CAN EXERCISE WITH THE TROOPS SAYS MR TITUNIK IT'S BETTER THAN EXERCISING WITH JACK LA LANNE IN HIS STUDIO THEN HE ENVISIONS A PROGRAM ON MILITARY CUISINE SUCH AS FREEZEDRIED STEWS AND A MILITARY HOMESHOPPING NETWORK FEATURING OLD HELMETS AND MILITARY PATCHES AND NO SUCH CHANNEL WOULD BE COMPLETE WITHOUT A TALK SHOW WHICH WOULD EXPLORE THE WOES OF MILITARY BRATS GAYS IN THE MILITARY OR WOMEN IN COMBAT SAYS MR TITUNIK TOM DORSEY TV CRITIC FOR THE LOUISVILLE COURIERJOURNAL SAYS THE MILITARY CHANNEL FACES COMPETITION FROM CABLETV CHANNELS THAT ALREADY SHOW OLD WAR MOVIES AND DOCUMENTARIES HE WONDERS HOW MUCH MORE MILITARY PROGRAMMING TV VIEWERS CAN TAKE THERE AREN'T THAT MANY PEOPLE WHO CAN REMEMBER WORLD WAR II OR SERVED IN IT MR DORSEY SAYS INDEED MILITARY CHANNEL COFOUNDER L DOUGLAS KEENEY SEES HIS POTENTIAL AUDIENCE AS PEOPLE LIKE HIMSELF WHO HAVE NEVER SERVED IN THE MILITARY BUT ARE WAR JUNKIES THESE INCLUDE HISTORY BUFFS SUPERPATRIOTS SOLDIER OF FORTUNE TYPES AVIATION NUTS AND THOSE WHO PLAY MILITARYSTRATEGY COMPUTER AND BOARD GAMES OUR AUDIENCE ISN'T ONLY MEN 55PLUS THEY'RE MEN 24 TO 49 THEY'RE THE KIDS WHO GO TO AIR SHOWS MR KEENEY SAYS STILL IT'S COMFORTING HE ADDS THAT WAR IS A BIG PART OF SHOW BIZ WORLD WAR II IS NOW MORE POPULAR IN THE RATINGS THAN IT'S EVER BEEN IN HISTORY HE SAYS AND THE CIVIL WAR'S POPULARITY IS AS HIGH AS EVER 9303110141 930311 AMERICA WEST TRAFFIC SLIPS PHOENIX ARIZ AMERICA WEST AIRLINES SAID ITS FEBRUARY TRAFFIC DROPPED 107 TO 7966 MILLION REVENUE PASSENGER MILES FROM 892 MILLION MILES A YEAR EARLIER LOAD FACTOR OR PERCENTAGE OF SEATS FILLED WAS UP TO 60 IN FEBRUARY FROM 571 LAST YEAR FOR THE TWO MONTHS ENDED FEB 28 AMERICA WEST SAID IT FLEW 163 BILLION REVENUE PASSENGER MILES A 133 DECREASE FROM THE 188 BILLION MILES FLOWN IN THE SAME PERIOD IN 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR FOR THE LATEST TWO MONTHS WAS 584 UP FROM 571 9303110140 930311 BUSINESS BRIEF AMAX GOLD INC PROVEN PROBABLE RESERVES OF GOLD GREW 40 IN 1992 AMAX GOLD INC GOLDEN COLO SAID ITS PROVEN AND PROBABLE GOLD RESERVES INCREASED 40 LAST YEAR TO 86 MILLION OUNCES THE COMPANY SAID ITS TOTAL RESERVES ROSE AS A RESULT OF FURTHER EVALUATION OF GOLD DEPOSITS AT ITS FORT KNOX PROPERTY IN ALASKA AND ITS ACQUISITIONS OF THE GUANACO PROJECT IN CHILE 625 OF THE HAILE PROJECT IN SOUTH CAROLINA AND 50 OF THE REFUGIO PROJECT IN CHILE THE COMPANY SAID IT CALCULATED ITS RESERVES ON A GOLD PRICE OF 375 AN OUNCE AT ALL ITS MINES EXCEPT WAIHI WHICH WAS CALCULATED WITH A PRICE OF 325 AN OUNCE 9303110139 930311 MARKETING & MEDIA GM UNIT RESISTS CANADA'S TV RULES FOR SERVICE THERE BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL HULL QUEBEC IN A CHALLENGE TO CANADIAN BROADCASTING RULES A US COMPANY DIRECTV INC ASSERTED THAT CANADA'S REGULATORS HAVE NO JURISDICTION OVER THE SATELLITE SERVICE IT PLANS TO LAUNCH NEXT YEAR IN BOTH THE US AND CANADA BASED IN EL SEGUNDO CALIF DIRECTV A UNIT OF HUGHES COMMUNICATIONS INC STATED ITS POSITION AT A FEDERAL HEARING INTO THE STRUCTURE OF THE CANADIAN TELEVISION INDUSTRY HUGHES COMMUNICATIONS IS A SUBSIDIARY OF GENERAL MOTORS CORP DIRECTV'S PLANNED SERVICE AND ITS POTENTIAL IMPACT ON CANADA'S TELEVISION INDUSTRY HAS EMERGED AS A CENTRAL CONCERN OF THE HEARING WHICH WAS CALLED BY THE CANADIAN RADIOTELEVISION AND TELECOMMUNICATIONS COMMISSION OR CRTC THE INDUSTRY'S FEDERAL REGULATOR IF DIRECTV WERE TO COME UNDER THE COMMISSION'S JURISDICTION ITS DIRECT SATELLITETOHOME TELEVISION SERVICE WOULD HAVE TO MEET STIFF RULES ON PROGRAM DIVERSITY AND CONTENT THE CANADIAN ASSOCIATION OF BROADCASTERS CLAIMS THAT THE COMMISSION HAS JURISDICTION OVER DIRECT BROADCASTING BY SATELLITE TO CANADA AND HAS THE MEANS TO ENFORCE ITS REGULATIONS BY SUCH MEASURES AS DENYING ACCESS TO CANADIAN ADVERTISING MEDIA AND TO 1800 TELEPHONE NUMBERS THE COMMISSION IS EXPECTED TO ISSUE A RULING ON THE JURISDICTIONAL ISSUE AFTER THE CONCLUSION OF THE HEARING THE COMMISSION'S CHAIRMAN KEITH SPICER INDICATED THAT TECHNOLOGICAL ADVANCES SUCH AS BROADCASTING BY SATELLITE ARE THREATENING TO UNDERMINE TELEVISION REGULATIONS ARE ALL THE SELFAPPOINTED CULTURAL GATEKEEPERS INCLUDING THE CRTC BASICALLY CONDEMNED TO THE DUSTBIN OF HISTORY HE ASKED JIM RAMO DIRECTV SENIOR VICE PRESIDENT TOLD THE HEARING THAT THE COMPANY'S ENTRY INTO THE NORTH AMERICAN MARKET WILL PROVIDE WIDER CHOICE FOR THE BROADCASTING SYSTEM AND CONSUMERS HE SAID DIRECTV WILL SEEK TO BUY CANADIAN PROGRAMS NOT BECAUSE OF A REGULATORY REQUIREMENT BUT BECAUSE THE COMPANY'S RESEARCH SHOWS THAT CANADIANS WANT TO WATCH CANADIAN PROGRAMS MR RAMO ESTIMATED THAT BY THE END OF THE CURRENT DECADE DIRECTV WOULD HAVE ABOUT 10 MILLION SUBSCRIBERS INCLUDING UP TO A MILLION IN CANADA THE CANADIAN CABLETV INDUSTRY HAS REACTED STRONGLY TO THE COMPETITIVE THREAT FROM DIRECTV AND OTHER POTENTIAL SATELLITE BROADCASTING SYSTEMS IF CANADIAN CABLE SYSTEMS DON'T UNDERGO A MAJOR UPGRADING THEY RISK LOSING UP TO 10 OF CUSTOMERS WITH BASIC SERVICE AND UP TO 50 OF DISCRETIONARY SUBSCRIBERS TO UNREGULATED US DIRECT SATELLITE SERVICES WARNED THE CANADIAN CABLE TELEVISION ASSOCIATION THE ASSOCIATION ASKED THE COMMISSION FOR PERMISSION TO INCREASE CABLE FEES TO MEET PART OF THE COSTS OF AN ESTIMATED 72 BILLION CANADIAN DOLLAR US578 BILLION EXPANSION OF CHANNEL CAPACITY BY DIGITAL VIDEO COMPRESSION WHICH SQUEEZES SEVERAL CHANNELS INTO THE SPACE OF ONE EDWARD ROGERS CHIEF EXECUTIVE OF CANADA'S LARGEST CABLE COMPANY ROGERS COMMUNICATIONS INC WARNED THAT UNLESS CANADA'S CABLETV INDUSTRY IS ABLE TO COMPETE WITH US DIRECT SATELLITE SERVICES THE VIEWING OF CANADIAN TV STATIONS WILL NOSEDIVE HE TOLD THE HEARING THAT THE SATELLITE BROADCASTERS COULD MORE THAN COVER THEIR COSTS IN THE US MARKET AND COULD AFFORD TO DUMP THEIR SERVICES IN CANADA EVERYTHING THEY GET UP HERE IS GRAVY HE SAID MR RAMO SAID THE DUMPING ALLEGATION IS RIDICULOUS HE SAID DIRECTV'S SERVICES SHOULD BE VIEWED AS ADDITIONAL PROGRAMMING RATHER THAN A REPLACEMENT FOR SERVICES CURRENTLY BEING RECEIVED EITHER VIA CABLE OR OFFAIR HE SAID DIRECTV WILL PROVIDE SUBSCRIBERS WITH ABOUT 150 CHANNELS THE SIGNALS WHICH WILL BE TRANSMITTED BY TWO SATELLITES CAN BE PICKED UP BY AN 18INCH SATELLITE DISH THAT WILL BE SOLD BY ELECTRONIC STORES AND OTHER RETAILERS THE SATELLITES ARE TO BE LAUNCHED IN DECEMBER AND IN MID1994 9303110138 930311 INTERNATIONAL BRITISH AIRWAYS' QANTAS DEAL SYDNEY AUSTRALIA BRITISH AIRWAYS PLC CLOSED ITS DEAL TO ACQUIRE 25 OF QANTAS AIRWAYS LTD PAYING THE AUSTRALIAN GOVERNMENT 665 MILLION AUSTRALIAN DOLLARS US4664 MILLION FOR THE STAKE THE SALE WHICH HAD BEEN DELAYED SINCE THE BEGINNING OF THIS MONTH WAS SETTLED AFTER BRITAIN'S OFFICE OF FAIR TRADING PROVIDED THE APPROVALS FOR CLOSING TO PROCEED BRITISH AIRWAYS CHAIRMAN SIR COLIN MARSHALL SAID THAT HE AND TWO OTHER BRITISH AIRWAYS OFFICIALS HAVE JOINED THE QANTAS BOARD BRITISH AIRWAYS WILL WORK WITH THE AUSTRALIAN GOVERNMENT ON THE INITIAL PUBLIC OFFERING OF THE REMAINDER OF QANTAS EXPECTED IN THE SECOND HALF OF 1993 9303110137 930311 WHO'S NEWS CARLYLE GROUP TAPS JAMES BAKER AS PARTNER AT FIRM BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FORMER SECRETARY OF STATE JAMES BAKER WILL BECOME A PARTNER IN CARLYLE GROUP A POLITICALLY CONNECTED MERCHANT BANKER WHERE HIS PRESENCE WILL BE USED TO HELP ATTRACT CORPORATE CLIENTS MR BAKER'S LONGTIME PROTEGE FORMER WHITE HOUSE BUDGET DIRECTOR RICHARD DARMAN WAS RECENTLY NAMED A MANAGING DIRECTOR OF CARLYLE FORMER DEFENSE SECRETARY FRANK CARLUCCI IS CARLYLE'S CHAIRMAN ALTHOUGH MR BAKER WILL PARTICIPATE IN THE FIRM'S INVESTMENT DECISIONS HIS MAIN FUNCTION WILL BE TO USE HIS STATURE AS AN INTERNATIONAL STATESMAN TO BRING IN NEW CLIENTS THE MOST VALUABLE THING HE CAN DO IS HELP PERSUADE A CORPORATE CEO THAT WE'D BE A GOOD BUYER OF AN ASSET THEY HAD FOR SALE IF JIM BAKER CALLS YOU YOU'LL PROBABLY RETURN HIS CALL SAID DAVID RUBINSTEIN WHO FORMED CARLYLE GROUP IN 1987 WE THINK IT WILL BE WELL WORTH IT IF HE CAN GET US IN TO SEE SOME COMPANIES MR RUBINSTEIN SAID THAT MR BAKER WHO IS EXCEEDINGLY CONCERNED ABOUT HIS PUBLIC IMAGE WON'T HELP THE FIRM RAISE CAPITAL HIS JOB WILL NOT BE TO RAISE MONEY MR RUBINSTEIN INSISTED MR BAKER'S INTERNATIONAL REPUTATION HAS BROUGHT HIM AT LEAST ONE OTHER BUSINESS OPPORTUNITY EARLIER THIS MONTH ENRON CORP A HOUSTONBASED NATURAL GAS COMPANY SAID MR BAKER AND ROBERT MOSBACHER A FORMER COMMERCE SECRETARY IN THE BUSH ADMINISTRATION HAD BEEN HIRED AS CONSULTANTS ON OVERSEAS PROJECTS SINCE LEAVING GOVERNMENT MR BAKER HAS JOINED THE LAW FIRM OF BAKER & BOTTS WHICH WAS COFOUNDED BY HIS GREATGRANDFATHER AND HAS BEEN APPOINTED TO THE BOARD OF TRUSTEES AT RICE UNIVERSITY IN HIS HOMETOWN OF HOUSTON AND WILL BE INVOLVED IN VARIOUS ACTIVITIES AT THE UNIVERSITY MR BAKER ALSO PLANS TO WRITE A BOOK ABOUT HIS YEARS AS SECRETARY OF STATE MR BAKER ENJOYED A GLITTERING REPUTATION IN WASHINGTON OVER THE PAST DOZEN YEARS AS HE HELD SENIOR POSTS IN BOTH THE REAGAN AND BUSH ADMINISTRATIONS HOWEVER THAT IMAGE WAS TARNISHED AFTER MR BAKER WAS CALLED BACK TO THE WHITE HOUSE LAST SUMMER TO RUN MR BUSH'S CAMPAIGN LAST FALL STATE DEPARTMENT OFFICIALS CONDUCTED AN ILLEGAL SEARCH OF BILL CLINTON'S PASSPORT FILE SEEKING INFORMATION ABOUT WHETHER MR CLINTON A VIETNAM WAR PROTESTER CONSIDERED RENOUNCING HIS CITIZENSHIP WHEN HE WAS A GRADUATE STUDENT IN ENGLAND AT LEAST ONE OF MR BAKER'S TOP AIDES MAY HAVE BEEN INVOLVED IN THE PASSPORT EPISODE WHICH IS STILL UNDER INVESTIGATION MR BAKER HIMSELF HAD TO HIRE A LAWYER FOR THE SPECIAL COUNSEL INVESTIGATION INTO THE PASSPORT CASE 9303110136 930311 WHO'S NEWS BCE MOBILE APPOINTS CHAIRMAN MONTREAL BCE MOBILE COMMUNICATIONS INC NAMED JOHN T MCLENNAN PRESIDENT AND CHIEF EXECUTIVE TO THE ADDITIONAL POST OF CHAIRMAN EFFECTIVE APRIL 1 MR MCLENNAN 47 YEARS OLD SUCCEEDS JV RAYMOND CYR WHO WILL REMAIN A DIRECTOR AND CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE MOBILE COMMUNICATIONS COMPANY'S BOARD MR CYR 59 YEARS OLD WILL ALSO RETIRE APRIL 1 AS CHAIRMAN OF BCE INC A MONTREAL TELECOMMUNICATIONS COMPANY THAT OWNS 655 OF BCE MOBILE 9303110135 930311 CHAMBERS DEVELOPMENT'S CREDIT PITTSBURGH CHAMBERS DEVELOPMENT CO INC SAID IT NEGOTIATED A THREEMONTH EXTENSION TO WAIVER AGREEMENTS THAT EXPIRED MARCH 1 THEY INCLUDE A BANK AGREEMENT FOR 153 MILLION IN LETTERS OF CREDIT OUTSTANDING AS WELL AS 180 MILLION AND 24 MILLION OF OUTSTANDING SENIOR NOTES WHICH WERE ORIGINALLY ISSUED IN 1990 AND 1988 RESPECTIVELY CHAMBERS SAID IT HAS MADE ALL PAYMENTS ON TIME 9303110134 930311 INTERNATIONAL PROCORDIA SUGGESTS MONTEDISON TALKS ARE IN FINAL PHASE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDISH DRUG COMPANY PROCORDIA AB ACKNOWLEDGED THAT MINOR SNAGS HAVE DELAYED ITS PLANNED STAKEBUILDING IN MONTEDISON SPA'S ERBAMONT DRUG DIVISION BUT HINTED STRONGLY THAT THE TRANSACTION WILL BE SUCCESSFULLY COMPLETED SOON PROBABLY BEFORE THE END OF THIS MONTH GUARDED COMMMENTS FROM CHIEF EXECUTIVE OFFICER JAN EKBERG WERE THE FIRST PUBLIC STATUS REPORT SINCE PROCORDIA AND MONTEDISON ANNOUNCED EARLY LAST MONTH THAT THEY HAD ENTERED FINAL NEGOTIATIONS ABOUT MERGING THEIR PHARMACEUTICAL INTERESTS MANY INVESTORS HAD EXPECTED ANNOUNCEMENT OF A FINAL ACCORD YESTERDAY AND WERE DISAPPOINTED OVER THE SLUGGISH PROGRESS MEANWHILE PROCORDIA ANNOUNCED STELLAR 1992 FINANCIAL RESULTS FOURTHQUARTER PRETAX PROFIT NEARLY TRIPLED TO 163 BILLION KRONOR 2139 MILLION FROM 445 MILLION KRONOR A YEAR EARLIER ALTHOUGH THE YEARONYEAR COMPARISON WAS DISTORTED BY HEFTY ONETIME CHARGES IN THE FOURTH QUARTER OF 1991 THE STRATEGY OF COMBINING ERBAMONT WITH PROCORDIA'S KABI PHARMACIA WOULD CREATE A COMPANY TO RANK AMONG EUROPE'S TOP 10 DRUG MAKERS WITH ANNUAL SALES OF 36 BILLION THE COMBINED OPERATIONS WOULD WIELD ADDED RESOURCES FOR RESEARCH AND DEVELOPMENT AND MUSTER ENOUGH SALES CLOUT TO GIVE NEW DRUGS RAPID GLOBAL MARKET PENETRATION THE TWO PLAN TO FOCUS ON NICHE DRUGS AVOIDING THE HUGE BUT FIERCELY COMPETITIVE SECTORS SUCH AS CARDIOVASCULAR AND ULCER MEDICINES 9303110133 930311 FINANCING BUSINESS WYMANGORDON CO WYMANGORDON CO SAID IT IS SELLING 90 MILLION OF SENIOR NOTES DUE 2003 IT SAID IT ALSO ARRANGED A 40 MILLION THREEYEAR WORKING CAPITAL FACILITY THE SENIOR NOTES PRICED AT PAR HAVE A 10 3/4 COUPON AND A FIVE YEAR NONCALL PERIOD THEY WERE RATED DOUBLEBMINUS BY STANDARD & POOR'S CORP WYMANGORDON SAID UNDERWRITERS ARE DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND SALOMON BROTHERS INC CIT BUSINESS CREDIT IS PROVIDING THE WORKING CAPITAL FACILITY WYMANGORDON OF NORTH GRAFTON MASS MAKES FORGINGS AND CASTINGS FOR AEROSPACE AND DEFENSE EQUIPMENT 9303110132 930311 WHO'S NEWS ISOM TO HEAD CIGNA DIVISION PHILADELPHIA CIGNA CORP NAMED GERALD A ISOM TO HEAD ITS DOMESTIC PROPERTY AND CASUALTY OPERATION MR ISOM 54 YEARS OLD SUCCEEDS CALEB FOWLER WHO RESIGNED LAST MONTH AFTER THE DIVISION POSTED FOUR STRAIGHT YEARS OF LOSSES MR ISOM HAS SERVED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TRANSAMERICA CORP'S PROPERTY AND CASUALTY OPERATION SINCE 1985 WE ARE COMMITTED TO RETURNING CIGNA'S PROPERTY AND CASUALTY OPERATIONS TO PROFITABILITY SAID WILSON TAYLOR CIGNA'S CHAIRMAN AND CHIEF EXECUTIVE CIGNA PROPERTY AND CASUALTY UNIT POSTED PREMIUMS IN 1992 OF 29 BILLION AND ASSETS OF 117 BILLION 9303110131 930309 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9303110130 930311 CHICAGO MERCANTILE SEAT IS SOLD CHICAGO A SEAT ON THE CHICAGO MERCANTILE EXCHANGE WAS SOLD FOR 600000 DOWN 10000 FROM THE PREVIOUS SALE ON FEB 25 A SEAT ON THE EXCHANGE IS CURRENTLY QUOTED AT 560000 BID AND 620000 OFFERED THE RECORD PRICE FOR A SEAT ON THE EXCHANGE IS 620000 SET ON JAN 15 9303110129 930311 TECHNOLOGY BRIEF MOTOROLA INC PORTABLE COMPUTER USERS TO GET MESSAGING SERVICE MOTOROLA INC SCHAUMBURG ILL AND PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT AGREED TO ALLOW PORTABLE COMPUTER USERS ACCESS TO PACIFIC BELL'S ELECTRONIC MESSAGING SERVICE VIA MOTOROLA'S WIRELESS MESSAGING NETWORK THE MOVE IS DESIGNED TO ALLOW GREATER COMMUNICATION AND MOBILITY AMONG TRAVELING PROFESSIONALS WHO RELY ON NOTEBOOK COMPUTERS WIRELESS MESSAGES AND FILES CAN BE SENT SIMULTANEOUSLY TO THOUSANDS OF PEOPLE OR TO JUST ONE RECIPIENT THE COMPANIES SAID IN A JOINT STATEMENT PACIFIC TELESIS REGIONAL BELL TELECOMMUNICATIONS COMPANY IS BASED IN SAN FRANCISCO MOTOROLA ONE OF THE WORLD'S LEADING PROVIDERS OF WIRELESS COMMUNICATION TECHNOLOGIES ALREADY HAS SIMILAR AGREEMENTS WITH OTHER LARGE ELECTRONIC MAIL PROVIDERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO AND SPRINT CORP 9303110128 930311 BET HOLDINGS STOCK REPURCHASE WASHINGTON BET HOLDINGS INC SAID ITS BOARD AUTHORIZED A PLAN TO REPURCHASE UP TO 650000 OF ITS CLASS A SHARES IN OPENMARKET TRANSACTIONS THE COMPANY SAID IT IS BUYING BACK ITS SHARES BECAUSE IT BELIEVES THE STOCK IS UNDERVALUED IT SAID IT WILL USE THE SHARES TO BE PURCHASED OVER THE NEXT 12 TO 18 MONTHS FOR GENERAL CORPORATE PURPOSES THERE ARE CURRENTLY ABOUT 127 MILLION CLASS A SHARES OUTSTANDING BET IS THE PARENT COMPANY OF BLACK ENTERTAINMENT TELEVISION INC WHICH OPERATES THE BET CABLE NETWORK 9303110127 930311 ENTERPRISE NEW HEAD OF FRANCHISER GROUP STRESSES SELFREGULATION EMBRACING FRANCHISEES WILL HELP AVERT LEGISLATION C STEPHEN LYNN SAYS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL EMBRACE THE FRANCHISEE THAT IS WHAT C STEPHEN LYNN THE NEW CHAIRMAN OF THE INTERNATIONAL FRANCHISE ASSOCIATION SAYS FRANCHISERS MUST DO TO FEND OFF GOVERNMENT REGULATORS MR LYNN WHO SUCCEEDED GREGG M REYNOLDS LAST MONTH TAKES CHARGE OF THE MAJOR FRANCHISER GROUP AT A CRITICAL TIME THE INDUSTRY IS ONE OF THE FASTESTEXPANDING SECTORS OF THE US ECONOMY BUT GROWING PAINS HAVE COME WITH THE GROWTH AN ESTIMATED 2500 US FRANCHISERS LICENSE OUT THEIR NAMES AND BUSINESS FORMATS IN EXCHANGE FOR FEES AND ROYALTIES FROM ABOUT 275000 US FRANCHISEES THE IFA SAYS BUT CONCERN IS GROWING OVER SEVERAL ISSUES SUCH AS ENCROACHMENT BY NEW FRANCHISES ON THE TERRITORY OF EXISTING ONES WITHIN THE SAME CHAINS FRANCHISEES ALSO GRIPE ABOUT RESTRICTIONS THAT FORCE THEM TO BUY SUPPLIES FROM FRANCHISERS AND SOME SAY THEIR FRANCHISES MAY BE UNFAIRLY TERMINATED THE COMPLAINTS HAVE LED TO BITTERNESS BETWEEN MANY FRANCHISEES AND FRANCHISERS PROMPTING CALLS FOR STRONGER STATE AND FEDERAL LAWS TO CURB FRANCHISERS THE 45YEAROLD MR LYNN THE CHIEF EXECUTIVE OFFICER OF SONIC CORP A FASTFOOD COMPANY IN OKLAHOMA CITY SAYS FRANCHISERS CAN POLICE THEMSELVES IN AN INTERVIEW HE OUTLINED HIS VISION FOR GETTING LAWMAKERS OFF THE INDUSTRY'S BACK IN PART BY PUTTING A DISPUTERESOLUTION PROGRAM INTO PLACE AT THE IFA BY THE END OF THE YEAR AND BY BROADENING THE ORGANIZATION TO INCLUDE FRANCHISEES EXCERPTS FOLLOW Q WHAT'S WRONG WITH FRANCHISING AND WHAT WILL YOU DO ABOUT IT A THERE'S A SMALL LEVEL OF ACTUAL ABUSES BUT THERE'S TREMENDOUS FEAR BY FRANCHISEES WE HAVEN'T HAD A STRONG ENFORCED CODE OF ETHICS WITH TEETH NOW WE ARE PUTTING TOGETHER ONE WE HAVEN'T HAD A TRADE ASSOCIATION WORKING TOWARD SELFREGULATION BUT NOW WE ARE AND WE'VE HAD AN USANDTHEM MENTALITY TOWARD FRANCHISEES NOT AN INCLUSIONARY MENTALITY IF THERE'S ONE LEGACY I INTEND TO LEAVE AT THE IFA IT WILL BE A MINDSET CHANGE MY MISSION BY THE END OF THIS YEAR IS TO HAVE ALTERNATIVE DISPUTERESOLUTION CAPABILITIES UP AND RUNNING WITHIN THE IFA ALSO I WANT A PLAN TO BRING FRANCHISEES FULLY INTO THE MEMBERSHIP AND TO HAVE THAT MOVING ALONG WITH SUCH MOMENTUM THAT'S THERE'S NO TURNING BACK THAT WILL HELP US WITH OUR GRASSROOTS LOBBYING AND IT WILL HELP US E MEANINGFUL DIALOGUE WITH FRANCHISEES ABOUT THEIR NEEDS AND WANTS THE POLITICAL CLIMATE AND THE TIMING TODAY TO SOME DEGREE BECAUSE OF THE LEGISLATIVE PRESSURES CREATE AN ATMOSPHERE WHERE WE CAN GET THE SUPPORT NEEDED TO DO WHAT IS RIGHT FAIR AND HONORABLE Q WHY THE EMPHASIS ON SELFREGULATION A LOOK AT THE ALTERNATIVE REGULATORS AND LEGISLATORS WHO DON'T UNDERSTAND OUR BUSINESS ESTABLISHING ARBITRARY THINGS SUCH AS THREEMILE PROTECTIVE RADIUSES FOR FRANCHISEES TO PREVENT ENCROACHMENT ON THE SURFACE IF I WERE A FRANCHISEE I'D SAY THAT MAKES SENSE A PROTECTIVE RADIUS WOULD LEGALLY GUARANTEE A FRANCHISEE EXCLUSIVE TERRITORY BUT WHEN YOU START DIGGING BELOW THE SURFACE DO YOU REALLY WANT YOUR BUSINESS TO BE CONTROLLED BY LEGISLATORS DO YOU REALLY WANT PHRASES LIKE GOOD FAITH AND FAIR DEALING IN LEGISLATION WHAT THOSE THINGS MEAN CAN ONLY BE ANSWERED BY ATTORNEYS AND JURIES DO YOU REALLY WANT UNITS PROTECTED BY AN ARBITRARY THREEMILE PROTECTIVE RADIUS WHEN A CIRCLE OF ANY SIZE DOESN'T HAVE ANYTHING TO DO WITH WHERE CUSTOMERS COME FROM DO YOU REALLY WANT TO TIE THE GOOD FRANCHISERS' HANDS AND NOT LET THEM TERMINATE MEDIOCRE FRANCHISEES THE REALITY IS THAT MOST FRANCHISEES WANT A FRANCHISER TO GET THE BAD ONES OUT BECAUSE THEY'RE HURTING ALL OF US Q IS THE THREAT OF EXPULSION FROM THE IFA ENOUGH TO DETER VIOLATIONS A EVERY TRADE ASSOCIATION WITH SELFREGULATION STARTED OUT WHERE WE ARE STARTING OUT WITH TERMINATION OF MEMBERSHIP BEING THE MOST SEVERE PENALTY AS THE SELFREGULATING CAPABILITY AND THE COMMITMENT TO THAT PROCESS BY THE MEMBERSHIP GREW OTHER THINGS CAME ALONG LIKE FINES WE'RE AT A GREAT STARTING POINT Q MEANWHILE HOW CAN YOU STAVE OFF NEW LAWS TO CURB FRANCHISERS A WE'RE CONFIDENT WE'LL BE ABLE TO WIN THOSE BATTLES IN THE SHORT TERM WE WILL RAISE WHATEVER LEVEL OF WAR CHEST WE NEED TO MAKE SURE NEW LEGISLATION DOESN'T PASS AT THE STATE AND FEDERAL LEVELS WE DON'T WANT TO SPECIFY A FIGURE BUT WE'LL HAVE SUBSTANTIALLY MORE LOBBYING ACTIVITY IN 1993 THAN THERE WAS IN 1992 WE THINK WE HAVE THE FACTS ON OUR SIDE OUR CASE IS OVERWHELMINGLY POSITIVE I DON'T THINK LEGISLATORS UNDERSTAND THE JOBCREATION ASPECTS AND OVERALL ECONOMIC IMPACT OF FRANCHISING WHEN THE INDUSTRY IS WORKING SO WELL YOU DON'T WANT REGULATION JUST TO PROTECT A VERY SMALL MINORITY Q BUT WHAT ABOUT ALL THE REPORTS OF FRANCHISING ABUSE A THERE ARE SOME ABUSES GOING ON IN TERMINATIONS NONRENEWALS RESTRICTIVE SUPPLIER SOURCES THE MOST POLITICALLY CONTENTIOUS THINGS IN FRANCHISING TODAY ARE EXPANSION AND ENCROACHMENT BUT FRANCHISING IS WORKING OVERWHELMINGLY WELL THE VAST MAJORITY OF FRANCHISEES ARE PLEASED FAILURE RATES ARE VERY LOW TRUE ABUSES ARE VERY VERY FEW BUT THAT DOESN'T MAKE EVEN ONE OF THEM FAIR AND RIGHT THERE ARE NO EXCUSES FOR ABUSES TO OCCUR AND WE NEED TO WORK ON SOLUTIONS TO THAT Q HOW CAN FRANCHISERS LESSEN THE TENSIONS IN THE INDUSTRY A AS A FRANCHISER I NEED FRANCHISEES MORE THAN THAN THEY NEED ME MORE FRANCHISERS NEED TO UNDERSTAND THAT IT'S NOT THAT THEY'RE DOING A BAD JOB FOR FRANCHISEES THIS HAS MORE TO DO WITH STYLE AND CULTURE AND VOCABULARY TAKING A TOPDOWN TELLNOTSELL KIND OF APPROACH DOESN'T WORK WITH MY FIVEYEAROLD SON IT DOESN'T WORK WITH BUSINESS PARTNERS WHEN BILL ROSENBERG FOUNDED DUNKIN' DONUTS AND WHEN FRANK CARNEY FOUNDED PIZZA HUT THEY INSTINCTIVELY KNEW THAT THE FRANCHISEE WAS THEIR CUSTOMER AND PARTNER THEY DIDN'T TAKE A TOPDOWN APPROACH THEY MODIFIED THEIR IDEAS WHEN THEY HEARD A BETTER ONE FROM A FRANCHISEE OVER THE YEARS THERE HAS BEEN A STYLE CHANGE FRANCHISEES IN MY JUDGMENT DON'T WANT TO MAKE FINAL DECISIONS BUT THEY DO WANT MEANINGFUL INPUT INTO DECISIONS AFFECTING THEIR LIFE'S WORK THEIR SWEAT EQUITY AND THEIR DESTINY Q HOW SHOULD FRANCHISING FARE THIS YEAR A DURING OUR RECENT RECESSION FRANCHISING WAS GROWING AT A 6 OR 7 RATE AS MEASURED BY THE RETAIL SALES OF FRANCHISING SYSTEMS MY GUESS IS THAT WE'LL PERK BACK UP TO THE 8 TO 9 RANGE FEDERAL DEFICIT REDUCTION ASSUMING IT OCCURS WILL HAVE ENORMOUS POSITIVE IMPACT ON OUR ECONOMY AS LONG AS BUSINESS ISN'T OVERREGULATED OVERTAXED AND OVERBURDENED FRANCHISING IS GOING TO SURVIVE AND PROSPER I CAN EASILY SEE THE 1990S BEING THE BEST DECADE IN HISTORY FOR FRANCHISING 9303110126 930311 BUSINESS BRIEF WESTERN WASTE INDUSTRIES STAKE IN BEST PAK DISPOSAL SOLD TO USA WASTE SERVICES WESTERN WASTE INDUSTRIES SAID IT SOLD ITS 45 STAKE IN BEST PAK DISPOSAL INC TO DALLASBASED USA WASTE SERVICES INC HOLDER OF THE OTHER 55 INTEREST FOR 7 MILLION IN CASH AND 75000 SHARES OF USA WASTE STOCK WESTERN WASTE BASED IN TORRANCE CALIF SAID THE SALE RESULTED IN A PRETAX GAIN TO IT OF 27 MILLION BEST PAK DISPOSAL WHICH RUNS INDUSTRIAL WASTE SERVICES IN HOUSTON AND BEAUMONT TEXAS HAD REVENUE OF 17 MILLION IN ITS MOST RECENT FISCAL YEAR WESTERN WASTE SAID WESTERN WASTE WAS QUOTED AT 1150 A SHARE UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING USA WASTE SERVICES CLOSED AT 14 A SHARE UNCHANGED IN NATIONAL OVERTHECOUNTER TRADING INDICATING A VALUE OF ALMOST 11 MILLION FOR THE STOCK PORTION OF THE TRANSACTION 9303110125 930311 MPTV NAMES CHIEF PLANS MOVE ORLANDO FLA MPTV INC A HOLDING COMPANY WITH INTERESTS IN TV AND FILM PRODUCTION AND TAPE DUPLICATION SAID IT PLANS TO REORGANIZE MANAGEMENT AND MOVE ITS HEADQUARTERS TO MINNEAPOLIS MINN NEXT MONTH RAYMOND RASMUSSEN 43 YEARS OLD WAS SELECTED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR RASMUSSEN WILL RETAIN HIS POSTS AS CHAIRMAN AND CHIEF EXECUTIVE OF ANOVA CORP A HOLDING COMPANY IN MINNEAPOLIS WITH INTERESTS IN TRANSPORTATION OIL AND GAS PRODUCTION ENGINEERING AND MANUFACTURING OF HUNTING SUPPLIES HE SUCCEEDS ALBERT GANNAWAY 72 WHO RESIGNED AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE THE PRESIDENCY HAS NOT BEEN FILLED MR GANNAWAY COULD NOT BE REACHED FOR COMMENT 9303110124 930311 TECHNOLOGY & HEALTH NASA CHIEF SAYS CLINTON SEEKS CUT OF 50 IN SPACE STATION OPERATING COSTS BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HEAD OF THE SPACE AGENCY SAID PRESIDENT CLINTON IS TRIMMING PLANS FOR THE SPACE STATION CUTTING OPERATING COSTS BY AS MUCH AS HALF TO FREE MONEY TO DEVELOP COMMERCIAL TECHNOLOGIES IN EXPLAINING THE PRESIDENT'S PLANS TO REDESIGN THE SPACE STATION NASA ADMINISTRATOR DANIEL GOLDIN TOLD THE AMERICAN ASTRONAUTICAL SOCIETY YESTERDAY TO EXPECT SIGNIFICANT REDUCTIONS IN THE ORBITING LABORATORY'S 30 BILLION PRICE AND CUTS BY AS MUCH AS A FACTOR OF TWO IN OPERATING COSTS OVER THE STATION'S LIFETIME UNDER CURRENT PLANS THE PROJECT IS EXPECTED TO COST 100 BILLION TO 140 BILLION TO BUILD AND OPERATE FOR 30 YEARS NEW TOTALS HAVEN'T BEEN DECIDED YET AS PART OF A BROAD NEW DIRECTION FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION MR GOLDIN INDICATED THERE WILL BE LESS EMPHASIS ON HIGHPRICED SPACE TRAVEL IN FAVOR OF CHEAPER FASTER EXPLORATORY MISSIONS LIKE CURRENT PLANS FOR A 1 BILLION UNMANNED FLYBY OF PLUTO UNLIKE PRESIDENT BUSH WHO DECLARED HE WANTED TO START WORK TO SEND A MAN TO MARS IN 20 TO 30 YEARS MR GOLDIN INDICATED A MARS MISSION IS OUT OF THE PICTURE FOR NOW INSTEAD NASA WILL EMPHASIZE RESEARCH THAT CAN BENEFIT THOSE ON EARTH MR GOLDIN SAID FUNDS FOR HIGHTECHNOLOGY AREAS SUCH AS AERONAUTICS NEW MATERIALS AND ARTIFICIAL INTELLIGENCE WOULD BE IN DANGER OF BEING GUTTED IN LATER YEARS BY HUGE SPENDING TO MAINTAIN BIGTICKET ITEMS SUCH AS THE SPACE STATION THE NEW DIRECTION REFLECTS MR CLINTON'S AND VICE PRESIDENT ALBERT GORE'S EMPHASIS ON DEVELOPING AND COMMERCIALIZING NEW TECHNOLOGY TO HELP US COMPETITIVENESS AND CREATE JOBS BUT IT ALSO PICKS UP ON THEMES MR GOLDIN HAS SOUNDED SINCE HE WAS APPOINTED TO NASA BY PRESIDENT BUSH LAST YEAR THE CLINTON WHITE HOUSE HAS NEVER FORMALLY ANNOUNCED THAT IT WANTS TO RETAIN MR GOLDIN AT NASA ALTHOUGH IT'S CLEAR HE WILL CONTINUE AT LEAST THROUGH THE SPACE STATION REDESIGN THE REDESIGN OF THE SPACE STATION STILL HAS MAJOR CONTRACTORS PRIMARILY MCDONNELL DOUGLAS AEROSPACE BOEING AEROSPACE CO LOCKHEED AND ROCKETDYNE NERVOUS OVER THE THREATENED LOSS OF CONTRACTS AND JOBS AT LEAST 20000 JOBS ARE DIRECTLY TIED TO SPACESTATION WORK MR GOLDIN SAID THE REDESIGN WILL BE GEARED TO MINIMIZE PAIN TO THE EXTENT POSSIBLE HE SAID OTHER JOB OPPORTUNITIES WILL OPEN UP AS NASA GEARS UP ITS TECHNOLOGY EFFORTS BUT EVEN CONGRESSIONAL SUPPORTERS OF THE STATION EXPECT JOB LAYOFFS WHAT THE NEW SPACE STATION WILL LOOK LIKE AND BE ABLE TO ACCOMPLISH WILL BE DRAFTED BY A NASA TEAM THAT IS TO COME UP WITH IDEAS BY JUNE 1 SOME SPACE EXPERTS HAVE QUESTIONED WHETHER SCALING BACK THE STATION WHICH HAS BEEN RECONFIGURED MORE THAN ONCE SINCE IT WAS CONCEIVED IN 1984 WOULD STRIP IT OF ITS SCIENTIFIC WORTH BUT MR GOLDIN PROMISED TO CUT COSTS BY A HUGE AMOUNT AND DELIVER EQUAL OR BETTER SCIENCE HE REMAINED COMMITTED TO PUTTING THE LABORATORY IN SPACE ON TIME BY THE YEAR 2000 BUT GAVE NO HINT WHETHER PLANS TO KEEP ASTRONAUTS ON BOARD FULLTIME WOULD BE SCALED DOWN ONE POSSIBLE WAY TO TRIM COSTS COULD BE TO CUT DOWN THE LIFESPAN OF THE STATION FROM 30 YEARS MR GOLDIN SAID REDUCING ITS OPERATING LIFE WAS UNDER CONSIDERATION HE ALSO SAID HE FAVORS REDUCING RELIANCE ON THE SPACE SHUTTLE FOR ACCESS TO THE LAB WHICH SPACE EXPERTS SAY OPENS UP THE POSSIBILITY OF UNMANNED LAUNCHES TO SEND UP SOME OF THE HARDWARE OR USING FOREIGN SPACECRAFT TO SEND UP CREWS HE ALSO SAID HE WANTS TO REDUCE THE NUMBER OF DANGEROUS SPACE WALKS BY ASTRONAUTS WHO ARE TO ASSEMBLE THE PIECES IN ORBIT MR GOLDIN SAID PLANS WOULD BE ANNOUNCED IN A FEW WEEKS FOR INTERNAL REFORMS OF NASA'S MANAGEMENT AND ACCOUNTING PRACTICES TO HELP CURB COST OVERRUNS THAT HAVE PLAGUED THE SPACE STATION AND OTHER NASA PROJECTS 9303110123 930311 INTERNATIONAL BRIEF KLOECKNERWERKE AG GERMAN COMPANY RELEASES DETAILS OF RESTRUCTURING PLAN INSOLVENT GERMAN STEEL AND ENGINEERING GROUP KLOECKNERWERKE AG RELEASED DETAILS OF THE RESTRUCTURING PLAN SUBMITTED TO THE COUNTY COURT IN DUISBURG GERMANY EARLY THIS MONTH THE PLAN WHICH WOULD ALLOW KLOECKNERWERKE TO WRITE OFF SOME 14 BILLION MARKS 8406 MILLION OF ITS 27 BILLION MARKS IN DEBT TO BANKS AND SUPPLIERS HAS TO BE APPROVED BY THE COURT AND BY AT LEAST 80 OF KLOECKNERWERKE'S CREDITORS BEFORE IT CAN COME INTO EFFECT THE GROUP EXPECTS TO SECURE APPROVAL BY MIDMAY UNDER THE PLAN UNSECURED CREDITORS WHO ARE OWED MORE THAN 10000 MARKS WOULD RECEIVE 40 OF THE TOTAL OWED THEM THOSE WITH SECURED CLAIMS WOULD RECEIVE 60 AND THOSE WHO ARE OWED LESS THAN 10000 MARKS WOULD BE PAID IN FULL KLOECKNER POSTED A NET LOSS OF 560 MILLION MARKS FOR THE FISCAL YEAR ENDED SEPT 30 PRIMARILY BECAUSE OF WRITEOFFS IN ITS STEEL OPERATIONS A YEAR EARLIER IT HAD A PROFIT OF 152 MILLION MARKS 9303110122 930311 BUSINESS BRIEF GM ASKS FOR RETRIAL IN PICKUP CASE SAYING NEW WITNESSES HAVE SURFACED DETROIT GENERAL MOTORS CORP ASKED FOR A RETRIAL IN THE ATLANTA CASE THAT RESULTED IN A STUNNING 1052 MILLION AWARD TO THE PARENTS OF A BOY WHO DIED IN A GM PICKUP TRUCK SAYING TWO NEW WITNESSES HAVE COME FORWARD TO DISPUTE TESTIMONY THAT THE BOY SURVIVED THE INITIAL IMPACT OF THE CRASH GM AS EXPECTED HAS ALSO ASKED A STATE COURT JUDGE IN ATLANTA TO REDUCE THE 101 MILLION IN PUNITIVE DAMAGES AWARDED BY A JURY LAST MONTH TO THE PARENTS OF THE BOY SHANNON MOSELEY WHO DIED IN A 1989 CRASH WITH A DRUNKEN DRIVER THE HUGE PUNITIVE DAMAGE AWARD IN THE MOSELEY CASE WAS A BITTER DEFEAT FOR GM WHICH IS FIGHTING ALLEGATIONS THAT SOME 47 MILLION 19731987 FULLSIZE PICKUPS ARE UNSAFE BECAUSE THEIR SIDEMOUNTED GAS TANKS EXPLODE TOO EASILY WHEN THE TRUCKS ARE SIDESWIPED FEDERAL SAFETY REGULATORS ARE INVESTIGATING THE TRUCKS TO DETERMINE WHETHER A RECALL IS WARRANTED GM SAYS ITS TRUCKS ARE SAFE BUT HAVE BEEN THE VICTIM OF UNFAIR NEGATIVE PUBLICITY FOUR DAYS AFTER THE MOSELEY VERDICT GM REVEALED THAT NBC NEWS HAD AIRED SHOTS OF A PICKUP RIGGED WITH MODEL ROCKET ENGINES TO ENSURE THE TRUCK BURST INTO FLAMES IN ATLANTA DURING THE THREEWEEK MOSELEY TRIAL ATTORNEYS FOR SHANNON MOSELEY'S FAMILY ARGUED THAT THE BOY SURVIVED THE INITIAL IMPACT AND DIED IN A FIRE CAUSED BY THE FLAWED GAS TANK DESIGN GM COUNTERED THAT HE DIED ON IMPACT BUT THE JURY SIDED WITH THE MOSELEYS A GM SPOKESMAN SAID YESTERDAY THAT THE NEW WITNESSES ARRIVED ON THE SCENE BEFORE THE POLICE AND FOUND THAT THE BOY WAS ALREADY DEAD THE CAUSE OF THE DEATH WAS THE SEVERE IMPACT THE SPOKESMAN CONTENDED JAMES BUTLER AN ATTORNEY FOR THE MOSELEYS CALLED THE RETRIAL REQUEST A PUBLICITY STUNT SEPARATELY MR BUTLER HAS ASKED THE TRIAL JUDGE TO INCREASE THE AWARD TO THE MOSELEYS HE ALSO HAS FILED A CLASSACTION SUIT SEEKING DAMAGES FOR ALL GEORGIA OWNERS OF THE PICKUPS GM IS TRYING TO REMOVE THAT CASE TO FEDERAL COURT WHERE IT WOULD BE COMBINED WITH SEVERAL SIMILAR CASES AROUND THE COUNTRY THE SUITS WHICH ARE BEING COMBINED IN THE US DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA IN PHILADELPHIA SEEK TO FORCE GM TO MAKE THE GAS TANKS LESS DANGEROUS OR TO COMPENSATE TRUCK OWNERS FOR LOST RESALE VALUE 9303110121 930311 PEPPERAND SALT HAVE NOW BECOME SELFFIRED THAT I'VE HAD FOR MANY YEARS 9303110120 930311 MARKETING & MEDIA ADVERTISING TOBACCO AND AD INDUSTRIES BRACE FOR A CHALLENGE TO KEY TAX BREAK BY KEVIN GOLDMAN AFTER YEARS OF IMMUNITY THE TOBACCO INDUSTRY FACES INCREASING CHANCES THAT THE TAXDEDUCTIBLE STATUS IT ENJOYS FOR MORE THAN 17 BILLION IN ANNUAL AD SPENDING COULD WELL GO UP IN SMOKE THE CLINTON ADMINISTRATION AND OTHERS ARE MAKING NOISES ABOUT REDUCING OR EVEN DISALLOWING ENTIRELY THE TAX DEDUCTION FOR ADS AIMED AT PROMOTING A HABIT THAT KILLS AN ESTIMATED 434000 PEOPLE AND ADDS MORE THAN 50 BILLION TO HEALTH CARE COSTS EVERY YEAR NOW THE TOBACCO BUSINESS AND ITS BENEFICIARY MADISON AVENUE ARE GIRDING FOR A FIGHT MY SINCERE BELIEF IS WE WILL BE TAXED UNLESS WE GET VERY ACTIVE RIGHT NOW SAYS DANIEL JAFFE EXECUTIVE VICE PRESIDENT AND HEAD OF THE WASHINGTON OFFICE OF THE ASSOCIATION OF NATIONAL ADVERTISERS LIKE MANY SUPPORTING THE CIGARETTE SIDE OF THIS DISPUTE HE INVOKES THE SLIPPERY SLOPE ELIMINATE TAX DEDUCTIONS ON TOBACCO NOW AND NEXT IT WILL BE BEER AND ALCOHOL AND PERHAPS SOMEDAY SHAMPOO BUT WHAT BOTHERS MANY AD EXECUTIVES MOST OF COURSE IS THE DETRIMENTAL IMPACT THAT THE LOSS OF TAX DEDUCTIONS IS LIKELY TO HAVE ON TOBACCO AD SPENDING AND HENCE ON THEIR OWN BOTTOM LINE THIS WOULDN'T HELP AN AD AGENCY THAT IS RELYING ON THE PROSPERITY OF A CLIENT'S BUSINESS ADMITS BILL BROWN PRESIDENT OF MEZZINA/BROWN THE SMALL SHOP THAT HANDLES CAMEL CIGARETTES SURE IT WOULD HURT US FOR ANTISMOKING ADVOCATES THE ISSUE OF TAX DEDUCTIBILITY IS LESS ABOUT TAKING A WHACK AT THE FEDERAL BUDGET DEFICIT AND MORE ABOUT STRIKING A BLOW AGAINST SMOKING EVEN FORBIDDING TAX BREAKS ON ALL TOBACCO ADS WOULD BRING IN ONLY 14 BILLION MORE OVER FOUR YEARS A DROP IN THE DEFICIT'S 320 BILLION BUCKET ESTIMATES THE AD GROUP'S MR JAFFE BUT SEN TOM HARKIN REP JAMES P MORAN AND OTHERS ARGUE THAT THE FEDERAL GOVERNMENT UNDER THE CURRENT TAX CODE IS ESSENTIALLY UNDERWRITING THE ADVERTISING OF A LETHAL AND UNREGULATED PRODUCT ADDS A SPOKESMAN FOR THE COALITION ON SMOKING OR HEALTH WHICH COMPRISES THE AMERICAN CANCER SOCIETY AMERICAN HEART ASSOCIATION AND AMERICAN LUNG ASSOCIATION THE TOBACCO INDUSTRY ALWAYS SAYS IT ISN'T BEING TREATED FAIRLY WHAT'S SO FAIR ABOUT BEING UNREGULATED AND CAUSING DEATH THE FEDERAL GOVERNMENT ALWAYS DECIDES SOME PARTIES GET TAX DEDUCTIONS AND SOME DON'T HOMEOWNERS DO BUT APARTMENT RENTERS DON'T THE SPOKESMAN ADDS THE ARGUMENTS FOR FAIRNESS SIMPLY DON'T WASH AN EFFORT TO WHITTLE TOBACCO'S TAX BENEFITS WAS FIRST MADE IN 1986 BUT HAS BEEN SNUFFED OUT CONSISTENTLY DESPITE REPEATED ATTEMPTS IN THE SENATE AND HOUSE THE CLINTON CLIMATE HAS TAKEN OVER WASHINGTON HOWEVER THE PRESIDENT AND HIS WIFE HAVE BANNED SMOKING AT WHITE HOUSE EVENTS SEN HARKIN D IOWA IS EXPECTED TO INTRODUCE AS EARLY AS NEXT WEEK LEGISLATION THAT WOULD DISALLOW 20 OF ADVERTISING EXPENSES A SIMILAR HARKIN EFFORT WENT DOWN IN DEFEAT LAST YEAR BY A 5638 VOTE LAST WEEK US REP MORAN D VA INTRODUCED LEGISLATION THAT WOULD DISALLOW ENTIRELY THE TAX DEDUCTION FOR ADVERTISING EXPENSES AND TRUE TO THE AD INDUSTRY'S FEARS REP MORAN'S PROPOSAL WOULD WIPE OUT THE TAX DEDUCTION FOR ADVERTISING OF ALCOHOLIC BEVERAGES AS WELL WHILE THE PRODUCERS HAVE A RIGHT TO ADVERTISE THESE PRODUCTS I DO NOT BELIEVE THEY SHOULD BE ABLE TO DEDUCT THESE EXPENSES FROM THEIR FEDERAL INCOME TAX THE CONGRESSMAN SAYS IN A STATEMENT WHAT'S NEXT FOODS WITH HIGH FAT CONTENT ADS FOR VIOLENT RRATED MOVIES NOW THE CENTER FOR THE STUDY OF COMMERCIALISM A RABIDLY ANTIADVERTISING GROUP IN THE EYES OF DENIZENS OF MADISON AVENUE CALLS FOR REMOVING TAX BREAKS FOR ADVERTISING AIMED AT CHILDREN WE'RE POLITICIZING THE TAX CODE COMPLAINS MR JAFFE OF THE ADVERTISING TRADE GROUP IT IS A CHALLENGE TO THE ENTIRE AD INDUSTRY'S FIRST AMENDMENT RIGHTS DECLARES JIM DAVIDSON DIRECTOR OF THE ADVERTISING TAX COALITION THAT UMBRELLA GROUP WAS FORMED IN 1986 BY 10 MEDIA ASSOCIATIONS REPRESENTING MAGAZINES BROADCASTERS NEWSPAPERS AND OTHER OUTLETS IF CONGRESS EVER ATTEMPTED TO DO TO POLITICAL SPEECH WHAT THEY ARE ATTEMPTING TO DO TO TOBACCO ADVERTISING IT WOULD BE THROWN OUT BY THE SUPREME COURT IN A SECOND BUT NOBODY IN CONGRESS IS YET INSISTING ON AN OUTRIGHT BAN ON ALL SMOKING ADS WHICH MAY NOT BE ENTITLED TO THE SAME FIRST AMENDMENT PROTECTION ANYWAY AND TOBACCO ADS ARE PART OF A MULTIBILLIONDOLLAR CAMPAIGN OF PERSUASION THAT OFTEN ENDS UP WHETHER INTENTIONAL OR NOT REACHING LEGIONS OF IMPRESSIONABLE TEENAGERS WHO ADOPT AN ADDICTIVE HABIT THE TOBACCO BUSINESS INSISTS ADVERTISING DOESN'T GET ANYONE TO START SMOKING IT MERELY CONVINCES SMOKERS TO SWITCH BRANDS BUT IT HAS NONETHELESS COME UNDER SCATHING CRITICISM FOR SUCH TACTICS AS MEZZINA/BROWN'S JOE CAMEL CHARACTER WHICH IS WELLRECOGNIZED BY CHILDREN THE INDUSTRY SPENDING EFFORT IS MASSIVE TOBACCO BRANDS SPENT 39 BILLION LAST YEAR ON ADVERTISING AND PROMOTION ACCORDING TO THE TOBACCO INSTITUTE OF THAT SUM 22 BILLION WENT TO PROMOTION AND COUPONS AND SOME 17 BILLION WAS SPENT ON ADS IN NEWSPAPERS MAGAZINES BILLBOARDS AND AT THE POINT OF SALE CHEEKY PRINT ADS FOR RAMADA INTERNATIONAL'S RENAISSANCE HOTELS HAVE PUT THE COMPANY IN HOT WATER WITH THREE OF ITS MAJOR COMPETITORS BECAUSE THEY INCLUDE ENDORSEMENTS FROM THREE STRATEGICALLY NAMED COUPLES BRUCE AND CARMEN HILTON FRANK AND CINDY MARRIOTT AND DONALD AND SALLY HYATT THE THREE ADS IN QUESTION RAN OVER THE PAST MONTH OR MORE IN USA TODAY THE ECONOMIST AND THE WALL STREET JOURNAL EACH ONE SHOWED ONE OF THE COUPLES UNDER A HEADLINE SAYING FOR EXAMPLE WHY THE MARRIOTTS STAY AT RENAISSANCE MARRIOTT CORP HYATT CORP AND HILTON HOTELS CORP WEREN'T AMUSED THE THREE HOTEL CHAINS HAVE FILED A SUIT AGAINST RAMADA INTERNATIONAL HOTELS & RESORTS AND ITS PARENT COMPANY NEW WORLD HOTELS HOLDINGS LTD OF HONG KONG ALLEGING THAT THE RENAISSANCE ADS INFRINGE ON THEIR TRADEMARKS AND CREATE THE FALSE IMPRESSION THAT THEY ARE SOMEHOW CONNECTED WITH RAMADA A SPOKESWOMAN AT RAMADA INTERNATIONAL'S MIAMI HEADQUARTERS DECLINED TO COMMENT BEYOND NOTING THAT THE COUPLES IN THE ADS WERE REAL PEOPLE THE AGENCY THAT CREATED THE CAMPAIGN BACKUS TURNER & PARTNERS COULDN'T BE REACHED ALSO JOINING THE SUIT IS JW MARRIOTT JR CHAIRMAN AND PRESIDENT OF THE EPONYMOUS BETHESDA MD HOTEL CHAIN AND W BARRON HILTON CHAIRMAN AND CHIEF EXECUTIVE OF THE BEVERLY HILLS CALIF CHAIN HYATT CORP IS BASED IN CHICAGO A LEADING CONSUMER LOBBYING GROUP HAS LAUNCHED A CAMPAIGN PUSHING FOR THE RESIGNATION OF THE CHAIRMAN OF THE FEDERAL TRADE COMMISSION JANET D STEIGER CENTER FOR SCIENCE IN THE PUBLIC INTEREST THE WASHINGTONBASED ACTIVIST GROUP AND 274 OTHER CONSUMERPROTECTION ACTIVISTS ACADEMICS AND LOCAL OFFICIALS SIGNED A LETTER SENT TO PRESIDENT CLINTON URGING HIM TO BRING NEW LEADERSHIP TO THE FTC THE LETTER STOPS SHORT OF CALLING FOR MS STEIGER TO RESIGN OR FOR THE PRESIDENT TO APPOINT ONE OF THE OTHER FOUR COMMISSIONERS TO THE POST OF CHAIRMAN BUT BRUCE SILVERGLADE DIRECTOR OF LEGAL AFFAIRS FOR THE PUBLICINTEREST GROUP SAID THE LETTER WAS CERTAINLY A VOTE OF NOCONFIDENCE IN MS STEIGER AND THE OTHER COMMISSIONERS IT URGES MR CLINTON TO DRAW ON THE RANKS OF STATE AND LOCAL CONSUMER PROTECTION OFFICIALS CONSUMER ADVOCACY ORGANIZATIONS AND CONSUMER AFFAIRS PROFESSIONALS FOR FUTURE FTC APPOINTMENTS MS STEIGER A BUSH ADMINISTRATION APPOINTEE IS SERVING A SEVENYEAR TERM THAT IS SET TO EXPIRE IN 1995 THE NEXT OPENING OF A COMMISSION SEAT ISN'T EXPECTED UNTIL 1994 MS STEIGER WAS ON VACATION AND UNAVAILABLE TO COMMENT BARRY J CUTLER DIRECTOR OF THE FTC BUREAU OF CONSUMER PROTECTION SAID THE LETTER WAS AN UNDERSTANDABLE MANEUVER IN THE JOCKEYING AMONG LIBERAL AND MODERATE DEMOCRATIC GROUPS FOR A ROLE AT THE FTC IN THE NEW ADMINISTRATION 9303110119 930311 CENTRAL MAINE POWER TERMINATES AGREEMENT WITH CAITHNESSKING AUGUSTA MAINE CENTRAL MAINE POWER CO SAID IT TERMINATED A POWERPURCHASE AGREEMENT WITH CAITHNESSKING CO OF STAMFORD CONN WHEN CAITHNESS FAILED TO POST A REPLACEMENT LETTER OF CREDIT ON TIME AS REQUIRED BY THE CONTRACT CENTRAL MAINE SAID THE TERMINATION WILL SAVE ELECTRIC CUSTOMERS MILLIONS OF DOLLARS IN FUTURE FUEL COSTS BUT ROBERT TUCKER VICE PRESIDENT OF CAITHNESS SAID WE THINK THE CONTRACT WAS WRONGFULLY TERMINATED WE THINK A COURT IF CALLED UPON WOULD AGREE WITH US HE DECLINED FURTHER COMMENT THE 30YEAR CONTRACT WOULD HAVE REQUIRED THAT CENTRAL MAINE BUY POWER FROM A GENERATOR CAITHNESS PLANNED TO INSTALL AS PART OF A PROPOSED RECYCLED WASTEPAPER MILL IN TOPSHAM MAINE POWER DELIVERIES WERE SCHEDULED TO BEGIN ON NOV 1 1996 CENTRAL MAINE ESTIMATED THE PRESENTVALUE SAVINGS TO ITS CUSTOMERS OF THE CONTRACT CANCELLATION AT ABOUT 85 MILLION OVER THE 30 YEARS ALTHOUGH THE CANCELLATION OF THE CAITHNESS CONTRACT WON'T REQUIRE ANY PAYMENT BY CENTRAL MAINE THE UTILITY HAS SPENT A TOTAL OF 23 MILLION TO DATE TO BUY OUT FOUR OTHER POWERPURCHASE CONTRACTS AND IS CURRENTLY COMMITTED TO SPENDING AS MUCH AS AN ADDITIONAL 22 MILLION TO BUY OUT TWO OTHER CONTRACTS AS ALLOWED BY REGULATORS THESE COSTS WILL BE PASSED ALONG TO CUSTOMERS THE COMPANY CURRENTLY HAS A POWER SURPLUS AND DOESN'T NEED THE ADDITIONAL POWER THAT WOULD HAVE BEEN SUPPLIED UNDER THE CONTRACTS THE COMPANY ESTIMATED THAT THE TERMINATION AND BUYOUTS WILL SAVE ITS CUSTOMERS A TOTAL OF 44 MILLION OVER THE NEXT FOUR YEARS IN FUEL COSTS 9303110118 930311 CLINTON MAY BE CREATING A MONSTER AS ADVISORY PANEL ON HEALTH SWELLS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THAT MEETING DOES NOT EXIST ON THIS COMPUTER SAID THE BABYFACED SECRET SERVICE OFFICER PEERING OUT AT THE KNOT OF FEDERAL BUREAUCRATS CONGRESSIONAL AIDES ACADEMICS AND WHOKNOWSWHOELSE WAITING TO BE CLEARED INTO THE OLD EXECUTIVE OFFICE BUILDING FOR A SCHEDULED SESSION OF ONE OF THE ADVISORY GROUPS WORKING ON PRESIDENT CLINTON'S HEALTHCARE REFORM PLAN THE MEETING DID IN FACT EXIST BUT THE SECURITY COMPUTER SYSTEM WAS SO OVERLOADED BY THE MASSES OF HEALTHCARE EXPERTS SEEKING ENTRY TO THE BUILDING THAT IT DIDN'T CAPTURE IT BILL CLINTON MAY BE OUT TO WHITTLE DOWN THE FEDERAL BUREAUCRACY BUT HE HAS CREATED A TEMPORARY GOVERNMENT PANEL THAT IS BIGGER THAN 99 OF ALL THE BUSINESSES IN THE COUNTRY THE WORKING GROUP THAT IS ADVISING MR CLINTON'S 10MEMBER TASK FORCE ON HEALTHCARE REFORM NOW TALLIES 526 PEOPLE BROKEN DOWN INTO AT LEAST 30 SUBGROUPS ACCORDING TO THE LATEST WHITE HOUSE ESTIMATE IT INCLUDES 362 FULLTIME EXECUTIVEBRANCH EMPLOYEES FROM DEEP IN THE BOWELS OF AT LEAST SIX CABINET DEPARTMENTS 98 CONGRESSIONAL AIDES AND 48 OUTSIDERS ON LEAVE FROM THEIR CURRENT POSTS INCLUDING MEDICAL DOCTORS UNIVERSITY ECONOMISTS POLITICAL SCIENTISTS NURSES AND SOCIAL WORKERS THERE IS A SOCIOLOGIST FROM PRINCETON A BIOETHICIST FROM THE BRONX A STATE INSURANCE OFFICIAL FROM CALIFORNIA AND THE DIRECTOR OF A RURAL HEALTH CLINIC IN MISSISSIPPI THERE ARE ALSO 18 CONSULTANTS INCLUDING EIGHT STATE HEALTH OFFICIALS WHO ARE VOLUNTEERING THEIR TIME AND ATTEND MEETINGS OF THE PANEL ONLY INTERMITTENTLY THE ADMINISTRATION WILL NOT DISCLOSE A SINGLE ONE OF THEIR NAMES WE WANT THESE PEOPLE TO GET THEIR WORK DONE SAYS ROBERT BOORSTIN A WHITE HOUSE SPOKESMAN AND DOMESTIC POLICY AIDE HE CONTENDS THAT RELEASING THE IDENTITIES OF THOSE INVOLVED IN THE PROJECT WOULD SUBJECT THEM TO AN ONSLAUGHT OF CALLS FROM SPECIAL INTEREST GROUPS LOBBYISTS AND JOURNALISTS THE 48 OUTSIDERS ARE BEING PAID AS TEMPORARY GOVERNMENT EMPLOYEES BUT THE ADMINISTRATION WON'T SAY HOW MUCH THEY HAVE OFFICE SPACE AND TELEPHONE NUMBERS BUT A RECENT CALL TO THE WHITE HOUSE SWITCHBOARD YIELDED THIS EXCHANGE WALTER ZELMAN PLEASE I'M NOT SHOWING A LISTING FOR ANYONE BY THAT NAME DO YOU KNOW WHICH OFFICE HE'S WITH THE HEALTHREFORM TASK FORCE OH WE HAVEN'T BEEN GIVEN ANY LISTINGS FOR THEM I CAN TRANSFER YOU TO PERSONNEL I'M LOOKING FOR THE TELEPHONE NUMBER FOR WALTER ZELMAN WE DON'T HAVE ANYONE BY THAT NAME WHAT OFFICE IS HE IN HE'S WITH THE HEALTHCARE TASK FORCE OH WE'VE HAVEN'T BEEN GIVEN ANY OF THOSE NAMES WE'RE GETTING A LOT OF CALLS FOR THEM THOUGH ALL THIS SECRECY HAS PROMPTED SOME IRE AS WELL AS A COURT SUIT CONTENDING ALL MEETINGS OF THE TASK FORCE MUST BE HELD IN THE OPEN A FEDERAL JUDGE YESTERDAY SHOT DOWN SOME OF THE CLAIMS IN THAT SUIT SPECIAL INTEREST GROUPS ARE MIFFED TOO THE AMERICAN MEDICAL ASSOCIATION AND A PHARMACEUTICALINDUSTRY TRADE GROUP HAVE ASKED TO PARTICIPATE IN THE WORKING GROUP THE WHITE HOUSE HAS SAID NO SPECIAL INTERESTS ARE ALLOWED BOTH CRITICS AND ADMIRERS ALIKE SAY THE GROUP MAY PROVE TO BE A SHREWD WAY TO SELL THE HEALTH PLAN THEY'VE MADE THE TASK FORCE SO INCREDIBLY ENORMOUS THAT EVERY THEORETICIAN AND POLICY ANALYST HAS BEEN BROUGHT IN THERE ARE NO OUTSIDE SOURCES TO ANALYZE IT COMPLAINS ROBERT DREYFUSS WASHINGTON REPRESENTATIVE OF PHYSICIANS FOR A NATIONAL HEALTH PROGRAM A GROUP ADVOCATING A GOVERNMENTFINANCED SYSTEM OF NATIONAL HEALTH INSURANCE AN APPROACH MR CLINTON DOESN'T SUPPORT LITERALLY ALMOST NO ONE IS LEFT ON THE OUTSIDE SEE RELATED ARTICLE MEDICAL MAZE HEALTHCARE EXPERTS DEVISING CLINTON PLAN FACE STICKY QUESTIONS HOW TO FINANCE THE PROGRAM AND WHAT IT WILL INCLUDE ARE AMONG THE TOP ISSUES HUGE STAKES FOR THE PRESIDENT WSJ MARCH 11 1993 9303110117 930311 BUSINESS BRIEF AMERICA WEST AIRLINES DISCOUNTS OF AS MUCH AS 30 EXTENDED ON LEISURE FARES AMERICA WEST AIRLINES PHOENIX SAID IT EXTENDED DISCOUNTS OF AS MUCH AS 30 ON LEISURE FARES MARKING THE FIFTH CONSECUTIVE EXTENSION OF THE SALE THAT BEGAN IN NOVEMBER AMERICA WEST IS STRUGGLING TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS AND IS USING THE DISCOUNTED FARES TO TRY TO STIMULATE DEMAND AND INCREASE REVENUE THE SALE INITIALLY WAS TO EXPIRE JAN 4 BUT EXTENSIONS HAD PUSHED THE EXPIRATION DATE TO YESTERDAY UNDER THE LATEST EXTENSION TRAVELERS HAVE TWO MORE WEEKS UNTIL MARCH 24 TO BUY THE DISCOUNT FARES TRAVEL STILL MUST BE COMPLETED BY JUNE 10 AND TICKETS MUST BE PURCHASED 14 DAYS IN ADVANCE A SATURDAY NIGHT STAY IS ALSO REQUIRED THE BEST DISCOUNTS APPLY TO OFFPEAK DAYS TUESDAYS AND WEDNESDAY RIVAL AIRLINES TYPICALLY MATCH DISCOUNT FARES IN COMPETITIVE MARKETS ALTHOUGH AMERICA WEST DOESN'T HAVE THE ROUTE NETWORK TO SET OFF A SYSTEMWIDE FARE WAR 9303110116 930311 BUSINESS BRIEF SCECORP CALIFORNIA APPROVES A PLAN FOR UTILITY TO PAY REFUNDS THE CALIFORNIA PUBLIC UTILITIES COMMISSION SAID IT APPROVED A PLAN FOR SCECORP'S SOUTHERN CALIFORNIA EDISON CO UNIT TO REFUND 250 MILLION TO CUSTOMERS THE MONEY WILL BE REFUNDED THROUGH REDUCED BILLS OVER A TWOYEAR PERIOD BEGINNING JAN 1 1994 A COMPANY SPOKESMAN SAID THE SETTLEMENT WAS PROVIDED FOR IN 1991 FINANCIAL STATEMENTS AND WON'T AFFECT CURRENT FINANCIAL RESULTS THE SETTLEMENT APPROVED BY THE CALIFORNIA PANEL WAS REACHED BETWEEN THE UTILITY AND THE COMMISSION'S DIVISION OF RATEPAYER ADVOCATES AND REPORTED LAST YEAR IT STEMS FROM ALLEGED SELFDEALING IN POWER PURCHASES BY SOUTHERN CALIFORNIA EDISON AS A REGULATED UTILITY AND GENERATING FACILITIES OWNED IN PART BY SCECORP'S NONREGULATED MISSION ENERGY CO UNIT 9303110115 930311 BUSINESS BRIEF BAYBANKS INC SIX MUTUAL FUNDS MANAGED BY SUBSIDIARY ARE OFFERED BAYBANKS INC BOSTON SAID IT LAUNCHED A GROUP OF NOLOAD MUTUAL FUNDS TO BE OFFERED TO RETAIL CUSTOMERS AT BRANCH OFFICES THE BANK WITH 99 BILLION IN ASSETS SAID IT IS OFFERING SIX MUTUAL FUNDS MANAGED BY ITS BAYBANKS INVESTMENT MANAGEMENT INC SUBSIDIARY WHICH HAD BEEN INVESTING ABOUT 800 MILLION FOR INSTITUTIONAL CLIENTS PRIVATE BANKING CUSTOMERS AND TRUST ACCOUNTS THOSE FUNDS WILL NOW FORM THE INITIAL CAPITAL IN THE NEW MUTUAL FUNDS WHICH INCLUDE MONEY MARKET BOND AND EQUITY FUNDS AND WHICH WILL BE OFFERED TO RETAIL CUSTOMERS THROUGH THE BANK'S 204 BRANCH OFFICES IN MASSACHUSETTS CUSTOMERS CAN ALSO INVEST IN THE MUTUAL FUNDS BY TELEPHONE WITH ACCESS THROUGH THE BANK'S 1200 AUTOMATED TELLER MACHINES IN MASSACHUSETTS EXPECTED BY LATE NEXT YEAR THE MUTUAL FUNDS DISTRIBUTED BY FEDERATED SECURITIES CORP OF PITTSBURGH WILL HAVE AVERAGE ANNUAL MANAGEMENT FEES OF LESS THAN 1 OF TOTAL ASSETS INVESTED BANK OFFICIALS SAID 9303110114 930311 ADMINISTRATION FACES FIGHT TO OBTAIN FUNDS TO FINISH MASSIVE THRIFT BAILOUT BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION FACES A TOUGH FIGHT TO OBTAIN FUNDS FROM CONGRESS TO FINISH THE MASSIVE SAVINGSANDLOAN BAILOUT THAT BEGAN MORE THAN FOUR YEARS AGO PROVIDING MONEY TO COVER FEDERALLY INSURED DEPOSIT OBLIGATIONS FOR FAILED THRIFTS 145 BILLION SINCE 1988 HAS ALWAYS BEEN AN ONEROUS CHORE FOR LAWMAKERS NOBODY FRESHMAN TO AN OLD SENIOR MEMBER LIKES THE IDEA OF APPROPRIATING BIG SUMS TO BAIL OUT FAILED THRIFTS SAID REP CHARLES SCHUMER D NY A MEMBER OF THE HOUSE BANKING COMMITTEE WHICH HAS REPEATEDLY TUSSLED WITH THE ISSUE THERE IS SOME GOOD NEWS HOWEVER THE WHITE HOUSE BUDGET OFFICE HAS TENTATIVELY ESTIMATED IT WILL TAKE 34 BILLION TO COMPLETE THE JOB AND BUDGET CHIEF LEON PANETTA THIS WEEK TOLD THE HOUSE WAYS AND MEANS COMMITTEE THAT SUM MAY BE MORE THAN ENOUGH HE SAID IT FINALLY APPEARS THAT WE'VE TURNED THE CORNER ON THE BAILOUT NOW THAT THE ECONOMY IS IMPROVING AND LOW INTEREST RATES ARE BOLSTERING THE FINANCES OF MANY THRIFT INSTITUTIONS IN FACT THE RESOLUTION TRUST CORP WHICH HAS CONDUCTED MOST OF THE BAILOUT AND WILL FINISH MOST OF THE REMAINING WORK SAID THAT IN RECENT MONTHS IT HASN'T HANDLED NEWLY FAILED THRIFTS IN THE NUMBERS THAT WE EXPECTED MOREOVER RISING PRICES FOR ASSETS OF COLLAPSED S&LS AS THE ASSETS ARE SOLD BY THE RTC ARE HELPING TO REDUCE THE AGENCY'S NEED FOR FEDERAL FUNDS THE 34 BILLION FIGURE ALSO IS IN LINE WITH THE ESTIMATES TWO MONTHS AGO OF THE DEPARTING BUSH ADMINISTRATION AND THAT FIGURE WAS DOWN FROM THE 42 BILLION SOUGHT LAST YEAR BY THE ADMINISTRATION CONGRESS HOWEVER VOTED AGAINST ADDITIONAL THRIFT BAILOUT FUNDS WHILE THE SENATE APPROVED THE FUNDING FOR THE BROKE RTC HOUSE REPUBLICANS WOULDN'T SUPPORT THE BUSH REQUEST AND DEMOCRATS REFUSED TO GO OUT ON A LIMB BY THEMSELVES WHILE THE S&L RESCUE'S PRICE TAG HAS APPARENTLY SHRUNK DURING THE DELAY THERE'S NO ASSURANCE IT WILL KEEP SHRINKING MEANWHILE THE RTC'S DAILY INTEREST COSTS FROM LACK OF FEDERAL FUNDING ARE ESTIMATED AT SOMEWHERE BELOW 6 MILLION A DAY THE ADMINISTRATION AND CONGRESS BOTH HOPE THE NEWEST FUNDING WILL WIND UP THE BAILOUT WHICH WAS ALWAYS SUPPOSED TO BE SHORTLIVED SINCE PAST ESTIMATES OF THE BAILOUT'S COST PROVED TO BE TOO LOW OFFICIALS WANT TO MAKE SURE THAT ENOUGH FUNDS ARE APPROPRIATED NOW SO THEY WON'T HAVE TO VISIT THE PRICKLY ISSUE AGAIN CONGRESSIONAL DEMOCRATS HAVE URGED THE WHITE HOUSE TO TACKLE THE RTC FUNDING ISSUE EARLY THOUGH MR CLINTON HAS OTHER BROADER ISSUES HIGH ON HIS AGENDA BY MOVING QUICKLY TO FINISH FUNDING THE BAILOUT THEY SAY THE PRESIDENT WILL BE ABLE TO PORTRAY THE TASK AS A DISTASTEFUL PROBLEM INHERITED FROM RONALD REAGAN AND GEORGE BUSH BUT THAT HAS TO HAPPEN SOON THE POLITICAL WINDOW IS ABOUT TO CLOSE CONTENDS A SENATE AIDE FINISHING THE BAILOUT CHORE MAY SEEM SOMEWHAT SMOOTHER WITH THE DEPARTURE OF ALBERT CASEY WHO WAS TAPPED BY PRESIDENT BUSH IN 1991 TO HEAD THE RTC MR CASEY TOLD RTC EMPLOYEES YESTERDAY THAT THE TREASURY DEPARTMENT HAS AGREED TO HIS REQUEST TO LEAVE THE AGENCY MONDAY MR CASEY PREVIOUSLY SAID HE WOULD RESIGN EFFECTIVE APRIL 1 CITING FAILURE OF THE CLINTON ADMINISTRATION TO RESPOND TO HIS SUGGESTIONS FOR THE AGENCY'S FUTURE ON TUESDAY TREASURY SECRETARY LLOYD BENTSEN AND OTHER MEMBERS OF A BOARD HE HEADS THAT OVERSEES THE RTC ARE SCHEDULED TO TESTIFY ON AGENCY MATTERS BEFORE THE HOUSE BANKING COMMITTEE UNDER MR CASEY THE AGENCY HAS BEEN FREQUENTLY CRITICIZED FOR CONTRACTING LAPSES AND MISGUIDED ASSETSALES POLICIES A RTC LEADERSHIP CHANGE IS NECESSARY TO OBTAIN THE FUNDING SAID REP BRUCE VENTO A FREQUENT CASEY CRITIC THE MINNESOTA DEMOCRAT AND OTHERS IN CONGRESS CONTEND THAT THE CLINTON ADMINISTRATION ALSO WILL HAVE TO SHOW IT'S TIGHTENING UP ON RTC POLICIES AND OPERATIONS SOMETHING SIGNIFICANT NEEDS TO BE CHANGED IN THE WAY THE RTC DOES BUSINESS AGREED REP BILL MCCOLLUM R FLA MR BENTSEN HAS ALREADY INDICATED HE FAVORS SOME OF THAT DISCIPLINE THE ADMINISTRATION IS CONSIDERING WHETHER TO NAME A HIGH TREASURY OFFICIAL OR ANOTHER ADMINISTRATION POLITICAL APPOINTEE TO RUN THE RTC IN ADDITION TO OTHER DUTIES OR WHETHER TO PICK TOP RTC OFFICIALS ALREADY IN PLACE TO RUN THE AGENCY A TREASURY SPOKESMAN SAID AN ANNOUNCEMENT ON WHO WILL HEAD THE RTC WILL BE MADE IN A FEW DAYS EVEN WITH MR CASEY GONE WRAPPING UP THE BAILOUT WILL BE DIFFICULT ESPECIALLY AS IT RUNS COUNTER TO EFFORTS TO SLASH THE FEDERAL DEFICIT HOUSE REPUBLICANS WILL PROBABLY BE EVEN LESS LIKELY TO ACCEDE TO MR CLINTON'S BID FOR ADDITIONAL MONEY AND MANY OF THE 110 FRESHMEN IN THE HOUSE CAMPAIGNED AGAINST CONGRESSIONAL ACTIONS SUCH AS THE S&L BAILOUT THEY'RE NOT GOING TO BE HAPPY ABOUT APPROPRIATING BILLIONS OF DOLLARS SAID ONE DEMOCRATIC AIDE THERE ARE A BAZILLION REASONS TO VOTE NO ANOTHER HOUSE STAFFER SAID NO ONE THANKS MEMBERS FOR VOTING RTC MONEY AND PROTECTING THEIR DEPOSITS AND LAWMAKERS WILL LIKELY TRY TO TACK ON AMENDMENTS SOUGHT BY BANKS OR S&LS THAT COULD JEOPARDIZE THE BAILOUTWRAPUP LEGISLATION THE FIRST PIECE OF FINANCIAL LEGISLATION THIS YEAR TO BE SURE MANY FRESHMEN SEEM TO UNDERSTAND THAT THERE'S NO ALTERNATIVE OTHER THAN TO WELSH ON THE GOVERNMENT'S COMMITMENT SAID REP SCHUMER REP BARNEY FRANK AGREED IF THEY DON'T WANT TO BE INVOLVED IN VOTING TO WRAP UP THE S&L BAILOUT THEY SHOULDN'T HAVE RUN FOR CONGRESS THEY SHOULD HAVE RUN FOR KING OF THE PROM THE MASSACHUSETTS DEMOCRAT PREDICTED THAT A VOTE FOR RTC FUNDING WHEN MIXED WITH SEPARATE DEFICITTRIMMING LEGISLATION WON'T PROVE UNPALATABLE FOR HOUSE MEMBERS 9303110113 930311 CLINTON UNVEILS PROGRAM TO EASE CREDIT CRUNCH BANKS FIRMS BACK CHANGES BUT PROPOSALS MAY NOT TAKE EFFECT FOR MONTHS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON NOTING THAT BANKS ARE HEALTHIER THAN THEY'VE BEEN IN YEARS ANNOUNCED PLANS TO EASE REGULATIONS IN AN EFFORT TO BOOST LENDING TO SMALL BUSINESS THE PACKAGE DREW IMMEDIATE SUPPORT FROM BANKS AND SMALL BUSINESSES THOUGH IT WILL BE SEVERAL MONTHS BEFORE REGULATORS WORK OUT DETAILS OF THE PROPOSED CHANGES I THINK THIS WILL BE A BIG HELP IN CLARIFYING RULES AND EXAMINATION PROCEDURES THAT HAVE IMPEDED LENDING SAID TERRENCE MURRAY CHAIRMAN OF FLEET FINANCIAL GROUP INC IN PROVIDENCE RI REGULATORS HAVE AGREED IN PRINCIPLE TO MEASURES THAT WILL FREE STRONG BANKS FROM PAPERWORK AND SOME PROPERTY APPRAISAL REQUIREMENTS FOR A BASKET OF LOANS BELOW A CERTAIN SIZE THAT LEVEL HAS YET TO BE SET THE IDEA IS TO REDUCE COSTLY AND TIMECONSUMING DOCUMENTATION REQUIREMENTS AND ALLOW BANKERS TO MAKE MORE CHARACTER LOANS THAT RELY LESS ON SPECIFIC LENDING CRITERIA AND MORE ON A GENERAL EVALUATION OF THE BORROWER'S CREDITWORTHINESS OTHER CHANGES WILL MAKE IT EASIER FOR BANKS TO SELL FORECLOSED REAL ESTATE INSTRUCT EXAMINERS TO LIMIT SOCALLED IN SUBSTANCE FORECLOSURES THAT REQUIRE BANKS TO WRITE DOWN REAL ESTATE LOANS EVEN THOUGH THE BORROWER IS CURRENT ON PAYMENTS AND MOVE AWAY FROM LOW REAL ESTATE VALUATIONS THAT DON'T RECOGNIZE THE FUTURE VALUE OF PROPERTIES IN A WHITE HOUSE ADDRESS TO A GROUP OF BANKERS TOP BANK REGULATORS AND LEADERS OF THE HOUSE AND SENATE BANKING COMMITTEES MR CLINTON TRIED TO HEAD OFF CONCERNS THAT RELAXING BANK REGULATIONS COULD LEAD TO MORE FAILURES WE WILL NOT REDUCE ATTENTION TO IMPORTANT REGULATION OR TO PROPER RESERVES FOR PROBLEM LOANS HE SAID THE PLAN WILL NOT LOWER THE CAPITAL REQUIREMENTS ESTABLISHED IN ACCORDANCE WITH INTERNATIONAL STANDARDS IT WILL NOT CAUSE A SINGLE BANK TO FAIL AND IT WILL NOT COST THE DEPOSIT INSURANCE FUNDS ONE DOLLAR INSTEAD HE SAID THE PLAN WILL PARE AWAY EXCESSIVE REGULATION THAT ACCUMULATED AS BANK SUPERVISORS TIGHTENED PROCEDURES FOLLOWING THE SAVINGSANDLOAN CRISIS AND THE COLLAPSE OF REALESTATE VALUES IN MANY AREAS OF THE US THE RESULT OF IMPROVED LENDING TO SMALL BUSINESS SHOULD BE A FLOW OF BILLIONS OF DOLLARS OF ECONOMIC STIMULUS THAT DOESN'T COST THE AMERICAN TAXPAYERS ONE RED CENT MR CLINTON SAID THE BUSH ADMINISTRATION TRIED TO ACHIEVE THE SAME GOAL BUT FOUND THAT FIELD EXAMINERS BURNED BY CONGRESSIONAL CRITICISM AND THE PUBLIC'S FEAR OF BANK FAILURES WERE RELUCTANT TO EASE THE STRICTEST STANDARDS BY CONTRAST THE CLINTON PROGRAM FACES A MORE FAVORABLE ENVIRONMENT THE BANKING INDUSTRY EARNED RECORD PROFITS LAST YEAR AND CAPITAL IS RISING BANK FAILURES ARE DECLINING MAKING IT CLEAR THAT THE BANKING CRISIS OF TWO YEARS AGO IS OVER THERE'S A SENSE OF BETTER HEALTH MR MURRAY SAID AS A RESULT CONGRESSIONAL ATTENTION HAS GENERALLY TURNED FROM PREVENTING BANK FAILURES TO PROMOTING RECOVERY AND JOB GROWTH AFTER THE WHITE HOUSE CEREMONY SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE SAID I STRONGLY SUPPORT PRESIDENT CLINTON'S EFFORTS TO GET OUR ECONOMY MOVING AGAIN AND AGREE WITH HIM THAT AMERICA'S BANKS AND THRIFTS ARE NOW WELLPOSITIONED TO PLAY A LARGER ROLE IN THAT EFFORT UNTIL RECENTLY THE MICHIGAN DEMOCRAT HAS BEEN MORE LIKELY TO HIGHLIGHT THE WEAKNESSES RATHER THAN THE STRENGTHS OF THE BANKING SYSTEM BUT HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ WHO WAS INVITED TO THE WHITE HOUSE BUT DIDN'T ATTEND WAS MORE GUARDED IT WILL TAKE GREAT SKILL TO DEVISE WAYS TO PROTECT AGAINST CALAMITY WHILE AT THE SAME TIME ALLOWING GREATER DISCRETION TO LENDERS THE TEXAS DEMOCRAT SAID IN ADDITION SEVERAL CONSUMER GROUPS WARNED THAT RELAXING BANK REGULATIONS COULD THREATEN THE SOUNDNESS OF THE BANKING SYSTEM WHILE BANKERS PRAISED THE PACKAGE MANY WANT MORE THE BANKING INDUSTRY HAS LAUNCHED A MAJOR CAMPAIGN TO CONVINCE CONGRESS TO SCALE BACK PARTS OF A 1991 LAW THAT IMPOSED STRICT RULES IN RETURN FOR AN EXPANDED TREASURY LINE OF CREDIT TO SUPPORT THE BANK DEPOSIT INSURANCE FUND HOWEVER THE ADMINISTRATION DOESN'T WANT TO SUPPORT WEAKENING BANK LAWS NOW BANKERS AND ADMINISTRATION OFFICIALS AGREE THAT THE MAIN REASON FOR THE SOCALLED CREDIT CRUNCH IS A LACK OF LOAN DEMAND BY BUSINESSES THAT HUNKERED DOWN DURING THE RECESSION BUT THAT'S BEGINNING TO CHANGE EZEKIEL KETCHUM THE PRESIDENT OF MERIDIAN BANCORP IN READING PA SEES SIGNS THAT LOAN DEMAND IS PICKING UP AS THE ECONOMY RECOVERS WE HAVE A LOT MORE INQUIRIES HE SAID WHAT'S MORE HE SAID THAT REGULATORS ALREADY ARE LOOKING AT THINGS A LITTLE BIT DIFFERENTLY SUGGESTING THAT THE CLINTON PLAN WILL LARGELY GIVE A PUSH TO CHANGES CURRENTLY UNDER WAY NOT ALL AGREE IT'S NOT GOING TO MAKE A BIG DIFFERENCE SAID GERALD LIPKIN CHAIRMAN OF VALLEY NATIONAL BANK IN WAYNE NJ HIS INTENTIONS ARE PERFECT BUT HE HASN'T HIT ON THE SOLUTION SAID MR LIPKIN WHILE SOME OF MR CLINTON'S PROPOSALS WILL HELP BANKS' EXISTING LOANS IT WON'T NECESSARILY PROMPT NEW LENDING MR LIPKIN SAID FOR SMALL BUSINESSES THE MOST SIGNIFICANT CHANGE IS THE PROPOSAL TO ALLOW THE NATION'S HEALTHIEST BANKS TO CARRY A BASKET OF LOANS WITH MINIMAL DOCUMENTATION REQUIREMENTS ONE REGULATOR SAID THE BASKET COULD BE AS LARGE AS 25 OF A BANK'S CORE CAPITAL ITS EQUITY CUSHION AGAINST FAILURE NO SINGLE LOAN IN THE BASKET COULD BE ABOVE A CEILING THAT WILL LIKELY BE BETWEEN 500000 AND 1 MILLION THE OFFICE OF THE COMPTROLLER OF THE CURRENCY THE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION ARE STILL WORKING ON THE DETAILS WHICH WILL INCLUDE STRICT RULES FOR ESTABLISHING RESERVES AGAINST LOANS THAT BECOME NONCURRENT ANOTHER IMPORTANT CHANGE WILL MAKE IT CLEAR THAT REAL ESTATE USED IN ADDITION TO OTHER COLLATERAL FOR BUSINESS LOANS WON'T REQUIRE A CERTIFIED APPRAISAL THIS WILL REDUCE THE COST AND TIME NECESSARY TO EXTEND CREDIT ONE OF THE MOST CONTROVERSIAL PROPOSALS IS TO LIFT THE CURRENT 100000 THRESHOLD OF REALESTATE LOANS THAT REQUIRE LICENSED APPRAISALS THIS COULD REQUIRE A LENGTHY RULEMAKING PROCEDURE REGULATORS ARE CONSIDERING BOOSTING THE LEVEL TO 250000 A RULE CHANGE THAT WILL GENERATE STIFF OPPOSITION FROM THE APPRAISAL INDUSTRY AND CONSUMER GROUPS NUMEROUS STUDIES DURING THE PAST DECADE SHOWED THAT FAULTY OR FRAUDULENT REALESTATE APPRAISALS WERE SYSTEMATICALLY USED BY CORRUPT OR INCOMPETENT FINANCIAL INSTITUTIONS TO OVERVALUE COLLATERAL TO MAKE REALESTATE LOANS LOOK ADEQUATELY SECURED THUS ADDING TO COST OF THE S&L BAILOUT A COALITION OF CONSUMER GROUPS SAID OTHER IMPORTANT CHANGES WILL REQUIRE ONLY NEW INSTRUCTIONS TO EXAMINERS AND SHOULD BE MADE QUICKLY THESE INCLUDE CLARIFICATION ON HOW TO DEAL WITH LOANS THAT RAISE SOME CONCERN BUT AREN'T YET CONSIDERED TROUBLED ACCOUNTING CHANGES THAT WILL MAKE IT EASIER FOR BANKS TO SELL FORECLOSED PROPERTY A MORE EFFECTIVE PROCESS FOR APPEALING BANK EXAMINATIONS AND EFFORTS TO REDUCE REGULATORY UNCERTAINTY IT MAY TAKE MORE TIME FOR PROPOSALS TO REDUCE REGULATORY OVERLAP AND TO REFOCUS THE BANK EXAMINATION PROCESS TO REDUCE BURDENS ON SOUND WELLCAPITALIZED BANKS WHILE DEVOTING MORE ATTENTION TO POLICING WEAK BANKS AND EVIDENCE OF LENDING DISCRIMINATION STEVEN LIPIN CONTRIBUTED TO THIS ARTICLE 9303110112 930311 LETTERS TO THE EDITOR WE'RE OK HOW ABOUT YOU FOR MONTHS THE WALL STREET JOURNAL HAS WAGED AN UNRELENTING CAMPAIGN OF CRITICISM AGAINST GREENPEACE'S ROLE IN FIGHTING THE VON ROLL HAZARDOUSWASTE INCINERATOR THE LARGEST IN THE WORLD YOU HAVE COMPLAINED STRIDENTLY THAT GREENPEACE'S TACTICS COMBINING DIRECT ACTION WITH RESEARCH AND LOBBYING HAVE UNDULY INFLUENCED OHIO'S LEADING NEWSPAPER A FEDERAL JUDGE THE HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY AND VICE PRESIDENT AL GORE NOW COMES YOUR MARCH 3 PAGEONE ARTICLE WANING CAMPAIGN GREENPEACE IS BATTLING SLIDE IN CONTRIBUTIONS AND IN POLITICAL CLOUT ARGUING THAT GREENPEACE IS LOSING ITS CLOUT TWO QUESTIONS FIRST SHOULDN'T YOUR UNDISGUISED ANTIPATHY FOR GREENPEACE RAISE DOUBTS ABOUT YOUR ABILITY TO REPORT ON US FAIRLY AND OBJECTIVELY PARTICULARLY GIVEN YOUR FORTUNE 500 READERSHIP AND SECOND WHICH IS IT IS GREENPEACE LARGELY INEFFECTIVE AS YOU SPENT 35 PARAGRAPHS TRYING TO PROVE OR TOO EFFECTIVE AS YOUR CRUSADING EDITORIALISTS WOULD HAVE IT WHO HAS THE INTERNAL SPLIT GREENPEACE OR THE WALL STREET JOURNAL SINCE THE EARLIEST DAYS OF GREENPEACE THERE HAS BEEN A SPIRITED AND HEALTHY DEBATE ABOUT TACTICS AND STRATEGY BUT WE HAVE ALWAYS SEEN DIRECT ACTION RESEARCH AND LOBBYING AS COMPLEMENTARY TOOLS FOR ENVIRONMENTAL ACTION AND THE EFFICACY OF THIS APPROACH HAS BEEN DEMONSTRATED TIME AND TIME AGAIN TAKE THE ISSUE OF HAZARDOUSWASTE INCINERATION IN OCTOBER 1991 A LARGESCALE DIRECT ACTION AT THE VON ROLL INCINERATOR SITE HELPED PUT EAST LIVERPOOL OHIO ON THE NATIONAL NEWS MAP THROUGH LOBBYING WE WORKED TO MAKE ELECTED OFFICIALS IN OHIO AND WASHINGTON AWARE OF EAST LIVERPOOL'S IMPORTANCE IN THE NATIONAL INCINERATION DEBATE MEANWHILE A GREENPEACE SCIENTIFIC REPORT REVEALED THAT INCINERATION TECHNOLOGY IS INADEQUATE TO MEET FEDERAL STANDARDS FOR ELIMINATING DIOXIN THIS COMBINATION OF APPROACHES THE PRAGMATISM OF WHATEVER WORKS SIGNIFICANTLY ELEVATED THE INCINERATION QUESTION IN THE ARENAS OF PUBLIC OPINION THE JUDICIAL SYSTEM AND THE POLITICAL PROCESS ASIDE FROM RELYING MOST HEAVILY ON THE UNINFORMED VIEWS OF PEOPLE WHO HAVE NOT BEEN A PART OF GREENPEACE FOR SOME TIME YOUR ARTICLE WAS LITTERED WITH CHEAP SHOTS AND HALFTRUTHS A FEW GREENPEACE SUCCESSES ARE HARDLY A THING OF THE PAST IN THE PAST THREE YEARS THE ORGANIZATION HAS ACHIEVED SOME OF THE MOST FARREACHING ENVIRONMENTAL SUCCESSES IN OUR HISTORY AN INTERNATIONAL MORATORIUM ON DRIFTNET FISHING A TREATY TO PROTECT THE ENTIRE CONTINENT OF ANTARCTICA FOR 50 YEARS DRAMATIC LIMITATIONS ON NUCLEAR TESTING WORLDWIDE AND OUTRIGHT BANS ON THE IMPORT OF HAZARDOUS WASTE BY MORE THAN HALF THE NATIONS OF THE WORLD GREENPEACE WAS AT THE FOREFRONT OF ALL THESE ISSUES WHICH REQUIRED YEARS OF DIRECT ACTION RESEARCH AND LOBBYING WHILE SOME OF OUR DEMONSTRATIONS ARE DELIBERATELY SATIRICAL OUR DIRECT ACTIONS ARE HARDLY COLLEGESTYLE PRANKS LAST FALL WHEN THE JAPANESE GOVERNMENT REFUSED TO TELL THE WORLD THE ROUTE OF A FREIGHTER LOADED WITH PLUTONIUM WASTES WE TRACKED THE SHIPMENT HALFWAY AROUND THE WORLD TO ALERT NATIONS ALONG ITS PATH THE DAY BEFORE THIS ARTICLE CAME OUT YOU REPORTED A GREENPEACE ACTION THAT WILL BRING ABOUT THE RETURN TO GERMANY OF 468 TONS OF DEADLY PESTICIDES ILLEGALLY DUMPED IN ROMANIA HARDLY A PANTY RAID THE FORMER GREENPEACE US SENIOR STAFFER WHO ALLEGED THAT NO ONE WAS MINDING THE STORE WAS HERSELF HIRED SPECIFICALLY TO ENSURE FINANCIAL ACCOUNTABILITY IN HER CAMPAIGN THE RESPONSIBILITY OF MINDING THE STORE WAS HERS YOU REPORTED THAT BROWNINGFERRIS INDUSTRIES INC IS PROCEEDING WITH A PROPOSED INCINERATOR IN NEW YORK DESPITE PROTESTS BY GREENPEACE AND OTHER ENVIRONMENTALISTS YOU FAILED TO MENTION THAT FOLLOWING PROTESTS IN BETHLEHEM NY THE COMPANY CHOSE TO TAKE ITS PROPOSAL 10 MILES UP RIVER HARDLY MINOR CHANGES WHERE IT IS MEETING STRONG OPPOSITION AGAIN IF IT IS OUR COMMITMENT TO NONVIOLENT DIRECT ACTION THAT SO UPSETS THE JOURNAL WHY NOT COME OUT AND SAY IT RATHER THAN TORTURE THE FACTS TO SUGGEST THAT GREENPEACE IS DIVIDED OVER THE ISSUE IF YOU THINK GREENPEACE IS NOT SAVING THE PLANET FAST ENOUGH YOU SHOULD ASK HOW YOUR PROMOTION OF BUSINESS AS USUAL MAKES OUR JOB THAT MUCH HARDER 9303110111 930311 BUSINESS BRIEF TOYS 'R' US INC RETAILER'S 4THQUARTER PROFIT ROSE 30 TO 3397 MILLION TOYS R US INC REPORTED RECORD RESULTS FOR THE FOURTH QUARTER WITH NET INCOME RISING 30 TO 3397 MILLION OR 114 A SHARE ON A 19 SALES GAIN TO 34 BILLION RESULTS WERE IN LINE WITH ANALYSTS' ESTIMATES MADE AFTER THE PARAMUS NJ TOY RETAILER REPORTED ITS SALES FOR THE CRUCIAL HOLIDAY PERIOD TOYS R US STOCK ROSE 125 CLOSING AT 42 IN NEW YORK STOCK EXCHANGE TRADING IN THE YEARAGO FOURTH QUARTER TOYS R US REPORTED NET OF 2616 MILLION OR 88 CENTS A SHARE ON SALES OF 286 BILLION WE INCREASED COMPARABLE STORE SALES FOR USA STORES BY 106 IN THE FOURTH QUARTER AND 69 FOR THE YEAR SAID CHARLES LAZARUS CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOYS R US SAID IT PLANS TO ADD BETWEEN 95 AND 100 NEW TOY STORES THIS YEAR MORE THAN HALF OF THEM OUTSIDE THE US 9303110110 930311 CORPORATE FOCUS PARAMETRIC FACES COUNTERATTACK FROM UPENDED RIVALS UPSTART CONCERN REAPS SUCCESS FROM SOFTWARE LAUNCHED FIVE YEARS AGO BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL WALTHAM MASS AFTER PARAMETRIC TECHNOLOGY CORP ANNOUNCED PLANS TO OPEN A SALES OFFICE IN JAPAN LAST YEAR THE SOFTWARE MAKER GOT AN UNUSUAL LETTER FROM AN ENGINEER AT A BIG US MANUFACTURER I CANNOT OVERCOME THE SENSE OF FOREBODING FROM PUTTING SUCH A POWERFUL TOOL IN THE HANDS OF HISTORICALLY STRONG AND SUCCESSFUL COMPETITORS HE WROTE CALLING IT ANOTHER WEAPON THE JAPANESE CAN USE TO MAKE OUR LIFE HELL THAT'S A MEASURE OF HOW STRONGLY SOME MANUFACTURERS FEEL ABOUT THE COMPETITIVE EDGE PROVIDED BY PARAMETRIC SOFTWARE WHICH IS USED BY ENGINEERS TO DESIGN PRODUCTS ON A COMPUTER DESIGNS THAT MIGHT ONCE HAVE TAKEN A MONTH CAN OFTEN BE DONE IN A MATTER OF HOURS SAYS STACY WOLFF A PRODUCT DEVELOPER AT RUBBERMAID INC DARRYL MILLER AN ENGINEER AT EASTMAN KODAK CO SAYS HIS TEAM HAS CUT THE TIME IT TAKES TO DESIGN NEW PARTS BY 50 OR MORE PARAMETRIC'S COMPETITORS FEEL STRONGLY TOO THE UPSTART COMPANY LEAPED FROM NOTHING TO 100 MILLION IN ANNUAL REVENUE IN JUST FIVE YEARS SENDING A SHOCK WAVE THROUGH THE 21 BILLION MARKET FOR MECHANICALDESIGN SOFTWARE THEY SENT A LOUD WAKEUP CALL TO THE INDUSTRY SAYS BRAD MORLEY PRESIDENT OF COMPETITOR APPLICON INC A UNIT OF SCHLUMBERGER LTD WHEN PARAMETRIC HIT THE MARKET IN 1988 COMPUTERAIDED DESIGN ALREADY HAD BECOME INDISPENSIBLE TO INDUSTRIES FROM AEROSPACE TO PLASTICS BUT THE MAVERICK'S ELEGANT NEW APPROACH IGNITED TURMOIL IN THE MATURING MARKET AND FORCED COMPETITORS INCLUDING THE LEADER INTERNATIONAL BUSINESS MACHINES CORP AND SECONDRANK COMPUTERVISION CORP TO DEFEND THEIR HUGE CUSTOMER BASE FROM ATTACK PARAMETRIC SOFTWARE WAS LESS COSTLY EASIER TO USE AND HAD UNIQUE TECHNOLOGY THEY'VE HAD EVERYONE ON THE RUN SAYS CHARLES FOUNDYLLER OF CONSULTANT DARATECH INC IN CAMBRIDGE MASS PARAMETRIC'S SUCCESS IS DRIVING TECHNOLOGY AND BUSINESS STRATEGIES ACROSS THE INDUSTRY AND THE REMARKABLE THING IS THEY'RE STILL COMPARATIVELY SMALL IN JUST SIXTH PLACE THIS YEAR IN MECHANICALDESIGN SOFTWARE HE SAYS PARAMETRIC'S SUCCESS IS REFLECTED IN THE EXPLOSIVE GROWTH OF ITS STOCK NOW TRADING AT A BREATHTAKING 44 TIMES ESTIMATED 1993 INCOME ITS PRETAX PROFIT WHICH HIT 406 OF REVENUE IN THE LATEST QUARTER MAKES IT THE MOST PROFITABLE OF ALL MAJOR SOFTWARE MAKERS INCLUDING GIANT MICROSOFT CORP THEY'RE THE MOST EFFICIENT COMPANY IN THE BUSINESS SAYS JOHN LEVINSON AN ANALYST AT GOLDMAN SACHS & CO INDEED A COMPANY INSIDER SAYS THE FISCAL SECOND QUARTER ENDING APRIL 3 LOOKS LIKE A BLOWOUT STILL THE FREE RIDE CAN'T LAST FOREVER PARAMETRIC'S FAT PROFIT MARGINS ARE NOT SUSTAINABLE OVER THE LONG TERM MR LEVINSON SAYS AND COMPETITORS AREN'T STANDING STILL STRUCTURAL DYNAMICS RESEARCH CORP UNVEILED SOFTWARE THIS WEEK THAT SOME ANALYSTS THINK COULD LEAPFROG PARAMETRIC IBM IS PREPARING A COUNTERATTACK OF ITS OWN BY THE END OF THE YEAR WHILE COMPUTERVISION HAS REVAMPED ITS PRODUCTS AND SEEMS TO BE RECOVERING FROM ITS FINANCIAL PROBLEMS PARAMETRIC'S MOST POTENT POTENTIAL RIVAL THOUGH MAY BE AUTODESK INC WHICH RECENTLY GAVE DETAILS OF PLANS THAT ENCROACH ON PARAMETRIC'S MARKET UP TO NOW AUTODESK HAS FOCUSED ON SOFTWARE FOR PERSONAL COMPUTERS WHILE PARAMETRIC SOFTWARE RUNS ONLY ON MOREPOWERFUL WORKSTATIONS BUT THAT DISTINCTION IS FADING EVEN AS AUTODESK EXPANDS INTO WORKSTATION SOFTWARE MICROSOFT'S FORTHCOMING WINDOWS NT OPERATING SYSTEM SEEMS LIKELY TO OBLITERATE THE BORDER BETWEEN WORKSTATIONS AND PCS ANALYSTS SAY THAT WILL START PUSHING PRICES DOWN IN DESIGNAUTOMATION SOFTWARE WHERE TYPICAL UNIT PRICES ARE 14000 OR MORE WE CAN BUST THE MARKET WIDE OPEN WITH A WHOLE NEW PRICING AND DISTRIBUTION MODEL SAYS LEN RAND AN AUTODESK VICE PRESIDENT BUT HE SAYS COMPETITORS MAY BENEFIT TOO THERE'S TREMENDOUS PRICE ELASTICITY AS PRICES FALL SALES VOLUMES SHOULD GO WAY UP INDEED PARAMETRIC THOUGHT SO MUCH OF AUTODESK'S PC FRANCHISE AND DEALER NETWORK THAT IT SOUGHT A MERGER LAST YEAR ACCORDING TO EXECUTIVES AT EACH COMPANY WITH KNOWLEDGE OF THE EPISODE THE OFFER CAME AT A TIME OF MANAGEMENT TURMOIL AT AUTODESK AND WAS REBUFFED PARAMETRIC EXECUTIVES SAY THEY AREN'T WORRIED ABOUT THE RISING COMPETITION EVERY YEAR WE'VE BEEN HEARING THAT THE NEXT RELEASE OF THIS OR THAT SOFTWARE IS GOING TO BE A PARAMETRICKILLER BUT THEY ALWAYS FALL SHORT SAYS STEVEN WALSKE PARAMETRIC'S CHIEF EXECUTIVE OFFICER EVEN AUTODESK THE ONE COMPANY WITH THE TECHNOLOGY AND RESOURCES TO MOUNT A CHALLENGE HE SAYS IS NO THREAT WE'RE IN AN EXTRAORDINARY SITUATION WITH NO REAL COMPETITION IN SIGHT SAYS SAMUEL GEISBERG THE FOUNDER AND CHAIRMAN PRESSED HE SAYS IT MAY GET TOUGHER NEXT YEAR BUT PROBABLY NOT UNTIL 1995 PERHAPS PARAMETRIC'S BIGGEST CHALLENGE IS THAT IT MUST SELL AGAINST ENTRENCHED COMPETITORS SCOTT BEER ENGINEERING MANAGER AT SAUERSUNDSTRAND CO AN IOWABASED MAKER OF TRANSMISSIONS FOR CONSTRUCTION EQUIPMENT RECENTLY CHOSE STRUCTURAL DYNAMICS OVER PARAMETRIC IN PART BECAUSE IT ALREADY HAD SOME STRUCTURAL DYNAMICS SOFTWARE IN USE PARAMETRIC WAS GOOD HE SAYS BUT THEY DIDN'T DISTINGUISH THEMSELVES ENOUGH TO MAKE IT WORTH THROWING OUT OUR LARGE INVESTMENT IN INSTALLED SOFTWARE AND THE DATABASE WE'VE BUILT UP OVER 10 YEARS AND THE EXPENSE OF ALL THE RETRAINING FAIR ENOUGH BUT PARAMETRIC'S SALESMEN DIDN'T TAKE THE LOSS WELL THEY WROTE LETTERS TO MY SUPERVISOR SUGGESTING I DIDN'T KNOW WHAT WAS BEST FOR THE COMPANY MR BEER SAYS IAN FISHER A VICE PRESIDENT AT SANDEN INTERNATIONAL USA INC A MAKER OF COMPRESSORS SAYS THAT SINCE CHOOSING COMPUTERVISION OVER PARAMETRIC WE'VE GOTTEN ONE RUDE PHONE CALL AND THREE OR FOUR LETTERS DISPARAGING OUR CHOICE AND SUGGESTING WE DIDN'T UNDERSTAND THE TECHNOLOGY PARAMETRIC'S INYOURFACE SALES APPROACH MAY BACKFIRE IN MAJOR CORPORATE ACCOUNTS IT'S FINE TO BE AGGRESSIVE BUT THEY'RE BURNING BRIDGES BEHIND THEM SAYS DARATECH'S MR FOUNDYLLER NONETHELESS PARAMETRIC HAS STRENGTHS THAT WILL BE HARD TO MATCH UNLIKE IBM FOR EXAMPLE ITS SOFTWARE ISN'T TIED TO ANY ONE COMPANY'S COMPUTER HARDWARE AND WHILE THE LACK OF AN INSTALLED BASE OF CUSTOMERS MAY BE AN OBSTACLE IT ALSO HAS ALLOWED PARAMETRIC TO WRITE SOFTWARE FROM MODERN CODE THAT IS FASTER AND MORE FLEXIBLE ITS TECHNOLOGY EVOLVED LARGELY FROM THE WORK OF DR GEISBERG AN INTENSE RUSSIAN MATHEMATICIAN WHO WAS A GEOMETRY PROFESSOR AT LENINGRAD UNIVERSITY BEFORE EMIGRATING TO THE US IN 1974 DR GEISBERG'S SOFTWARE EMBRACED THREEDIMENSIONAL CONCEPTS NEW TO THE INDUSTRY IT ASKED USERS TO SPECIFY RELATIONSHIPS BETWEEN DESIGN ELEMENTS NOT JUST THEIR LENGTHS OR WIDTHS CREATING A MORE INTELLIGENT MODEL IT ALSO IS FULLY ASSOCIATIVE MEANING THAT CHANGES IN ONE DRAWING ARE THEN REFLECTED THROUGHOUT THE MODEL DR GEISBERG DREW OTHER EMIGRES AT PARAMETRIC'S HEADQUARTERS IN A MODEST OFFICE PARK RUSSIAN IS OFTEN OVERHEARD IN THE HALLWAYS BUT THE MOST COMMON LANGUAGE IS MATHEMATICS AND PARAMETRIC ATTRACTS SOME OF THE BEST YOUNG GRADUATES IN THE FIELD JONATHON SHAPIRO A CAL TECHTRAINED MATH MAJOR WHO RECENTLY JOINED THE COMPANY AS A SOFTWARE ENGINEER PAUSES TO SHOW AN OBSCURE AUTO PART TO A VISITOR I DON'T KNOW WHAT IN THE WORLD THIS IS HE SAYS BUT I CAN TELL A MACHINE TOOL PRECISELY HOW TO MAKE IT STRUCTURAL DYNAMICS RESEARCH CORP AUTODESK INC 9303110109 930311 LEISURE & ARTS PLEDGEWEEK FARE SUSAN DEY AS A YUPPIE ADDICT BY DOROTHY RABINOWITZ THE PARTY IS FOR MS CHILD WHO ACTUALLY WAS BORN ON AUG 15 BUT PUBLIC TELEVISION WILL GET THE GIFTS THE SEASON OF THE PLEDGE DRIVE IS UPON US AGAIN BRINGING WITH IT LOTS OF UPSCALE AND ADULT PROGRAMS SURE LIKE THIS ONE TO APPEAL TO THOSE UPSCALE AND ADULT AUDIENCES MOST LIKELY TO DELIVER THE DOLLARS MS CHILD'S CELEBRATION IN TURN DELIVERS THE ENTERTAINMENT IN THIS TRIBUTE THAT HAPPILY NEVER LOSES ITS COMIC EDGE IN ADDITION TO A SOBER PARADE OF FAMOUS CHEFS COOKING THE DINNER AND A HORDE OF CELEBRITIES STILL MORE STELLAR ALL PRIMED WITH TESTIMONIALS TO THE SONOROUS BIRTHDAY PERSON THERE IS A COMPLETE RERUN OF DAN AYCKROYD'S DESERVEDLY IMMORTAL SATURDAY NIGHT LIVE SKETCH OF THE FRENCH COOK HERSELF IN THE KITCHEN THEN THERE ARE THE CLIPS OF MS CHILD THE EARLY YEARS ROISTERING BY THE RANGE AND NATTERING ON ABOUT THE COURAGE TO FLIP FOOD IN THE AIR A FINE PARTY ALTOGETHER SIT THOUGH YOU MUST THROUGH PLEDGE PITCHES THE TRICK IS TO FIND THIS CELEBRATION WHICH SUPPOSEDLY BEGINS AIRING ON PBS TOMORROW NIGHT BUT WHOSE AIR DATE IN FACT DEPENDS ON WHEN EACH STATION IS HAVING ITS PLEDGE DRIVE SUSAN DEY STARS AS CHRISTINA A MEMBER IN GOOD STANDING OF THE WORKADAY DRUG CULTURE WHO ENDS UP HAVING HER BABY TAKEN AWAY WHEN IT IS BORN SHOWING SIGNS OF ADDICTION AN AMBITIOUS YOUNG WOMAN CHRISTINA SPENDS A LOT OF TIME BROODING ABOUT PROMOTIONS WHILE SNORTING COKE IN THE COMPANY BATHROOM TO GET HER BABY BACK FROM THE CHILDCARE AGENCIES CHRISTINA MUST SHOW SHE'S KICKED THE DRUG HABIT NO EASY FEAT SURROUNDED AS SHE IS BY TEMPTERS ON ALL SIDES FOR ALL ITS PREDICTABILITY THIS MOVIE ABOUT LIFE AMONG THE BARELY FUNCTIONING DOES HAVE ITS COMPENSATIONS AMONG THEM WORTHY PERFORMANCES BY PIPER LAURIE AS THE SODDEN MOTHER AND LORRAINE TOUSSAINT AS AN EXTRAORDINARILY POMPOUS BUT GOLDENHEARTED SOCIAL WORKER A LONELY FORMERLYMARRIED CONSULTS THE PERSONALS AND FINDS THE WOMAN OF HIS DREAMS TRACY POLLAN NIGHTMARE VARIETY IN THIS FACTBASED FILM ABOUT A YOUKNOWWHAT ATTRACTION THAT SOME OF WHAT ENSUES ACTUALLY DID HAPPEN IS CHILLING TO NOTE GIVEN THE STUNNING GULLIBILITY ON DISPLAY IN THIS SAGA OF A HAPLESS MALE ENTRAPPED BY A CON WOMAN THE ACTORLY ATTRACTION HERE IS TIM MATHESON WHO PLAYS ROGER THE LOSER IN QUESTION WITH ADMIRABLE CONVICTION AN IMPRESSIVE ACHIEVEMENT IN ITSELF A FAIR ENOUGH MELODRAMA THIS TALE PLODS ALONG WELL ENOUGH UP TO THE TIME WHICH INEVITABLY COMES WHEN THE LOVEBESOTTED THIRTYSOMETHING BEGINS SHOWING A SIDE SO PROFOUNDLY DOPEY AS TO MAKE A FAIR PORTION OF THE VIEWING AUDIENCE LONG TO PUT HIM OUT OF HIS MISERY WITH ITS BARE HANDS JAMES GARNER STARS AS F ROSS JOHNSON CEO OF RJR NABISCO IN THIS FILM BASED ON THE BOOK BY BRYAN BURROUGH AND JOHN HELYAR ABOUT THE NOWFAMOUS TAKEOVER OF NABISCO BRANDS IT'S CLEAR FROM THE OUTSET THAT THE ROLE OF THE BLUSTERING MR JOHNSON IS ONE MR GARNER WAS BORN TO PLAY LARRY GELBART AUTHOR OF MASH WROTE THE SCRIPT FOR THIS ENTERTAINING PRODUCTION WHICH ALSO COMES COMPLETE WITH EDITORIALS FOR MR GELBART & CO APPARENTLY THE FILM PROVIDED AN OPPORTUNITY AS WHAT DOES NOT TO HOLD FORTH ON THE '80S AS THE DECADE OF GREED A VIEW NOW HELD AS REVEALED TRUTH IN ALL THE BEST ENLIGHTENED CIRCLES CONSEQUENTLY WE GET TO SEE QUITE A LOT OF GLEAMING MANHATTAN TOWERS WHERE EVIL BUSINESSMEN CONSPIRE THESE PICTURES ARE CROSSRUFFED WITH SHOTS OF BEDRAGGLED HOMELESS PEOPLE EATING FROM GARBAGE PAILS ETC STILL NEITHER THAT NOR MR GELBART'S OCCASIONAL INVENTIONS SUCH AS THE SCENE IN WHICH A WOMAN FINANCIAL REPORTER IS SHOWN INVADING A MEN'S TOILET IN THE END UNDERMINE THIS HILARIOUS WORK WHETHER THE MERGER MASTER HENRY KRAVIS PORTRAYED HERE WITH SATANIC GUILE BY JONATHAN PRYCE WILL THINK IT FUNNY IS ANOTHER MATTER TO SIMPLIFY THE COMPLEXITIES OF SUCH A CORPORATE WAR WITHOUT LOSING THEIR SUBSTANCE AND TO FORGE THEM INTO DRAMA ISN'T EASY BUT AS THIS FILM PRODUCED BY RAY STARK DIRECTED BY GLENN JORDAN PROVES IT CAN BE DONE AND WITH STYLE SEE RELATED ARTICLE LEISURE & ARTS TELEVISION NO WHITEWASH FOR THIS WAR ATROCITY WSJ MARCH 8 1993 9303110108 930311 PRESIDENT'S HEALTH PLAN COULD LIMIT AMERICANS' BELOVED CHOICE OF DOCTORS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL IS PRESIDENT CLINTON OUT TO LIMIT YOUR ABILITY TO CHOOSE YOUR DOCTOR THAT IS ONE OF THE CRUCIAL QUESTIONS FACING CONSUMERS AS THE ADMINISTRATION AND CONGRESS SEEK TO CHANGE THE FACE OF US MEDICINE AND THE ANSWER COULD HELP DETERMINE THE FATE OF THE CLINTON HEALTHREFORM PLAN IF THERE IS ONE THING MANY AMERICANS CHERISH ABOUT THE CURRENT HEALTHCARE SYSTEM IT IS THE FREEDOM TO SELECT THEIR OWN DOCTORS ESPECIALLY DURING A MEDICAL CRISIS BUT DOCTORS LIKE EXECUTIVES TEACHERS JOURNALISTS AND ATHLETES VARY WIDELY IN TRAINING TECHNIQUE AND COMPETENCE MOST PEOPLE DON'T KNOW HOW TO CHOOSE THEIR PHYSICIANS NOW SAYS FJ CROSSON ASSOCIATE EXECUTIVE DIRECTOR OF PERMANENTE MEDICAL GROUP A KAISER PERMANENTE PHYSICIANS' GROUP IN OAKLAND CALIF THE MOST COMMON WAY FOR PEOPLE TO CHOOSE A DOCTOR NOW IS TO ASK AROUND THE NEIGHBORHOOD OR AT WORK FOR RECOMMENDATIONS THAT'S CHOICE HE ADDS BUT HARDLY GUARANTEES THEY WILL PICK A COMPETENT DOCTOR UNDER MOST PROPOSALS FOR MANAGED COMPETITION CONSUMERS WOULD FIRST CHOOSE FROM AMONG COMPETING PLANS AND THEN CHOOSE A FAMILY DOCTOR FROM A LIST OF THOSE WORKING FOR THAT PLAN WHAT PATIENTS GIVE UP IN FREEDOM PROPONENTS OF MANAGED COMPETITION CONTEND THEY WOULD GAIN IN CONFIDENCE THAT THE PLANS THEMSELVES TRY TO SELECT TOPNOTCH DOCTORS THERE'S GOING TO BE A LOT MORE EMPHASIS ON THE ABILITY OF HEALTH ORGANIZATIONS TO PICK DOCTORS SAYS PAUL ELLWOOD ONE OF THE LEADERS OF THE SOCALLED JACKSON HOLE GROUP THAT IS THE MOST PROMINENT SPONSOR OF MANAGED COMPETITION KAISER PERMANENTE A HEALTH MAINTENANCE ORGANIZATION WHOSE DOCTORS ARE SALARIED IS OFTEN CITED AS A MODEL HEALTH PLAN FOR MANAGED COMPETITION IT RECRUITS DOCTORS THROUGH AN EVALUATION PROCESS THAT INCLUDES A RIGOROUS REVIEW OF TRAINING AND CREDENTIALS AND HIRES THEM AS PROBATIONARY EMPLOYEES FOR THREE YEARS AT THE END OF THAT PERIOD DOCTORS ARE VOTED IN AS FULLFLEDGED MEMBERS BY THEIR PEERS BASED ON ADVANCED TRAINING PERCEPTIONS OF COMPETENCE AND SUCH FACTORS AS RAPPORT WITH PATIENTS AND STAFF ABOUT 85 OF NEWLY HIRED DOCTORS EVENTUALLY BECOME FULL STAFF MEMBERS CONSUMERS WHO WANT MORE INFORMATION CAN CHECK ON WHERE DOCTORS WENT TO SCHOOL WHETHER THEY HAVE CHILDREN AND EVEN WHAT THEIR HOBBIES ARE BUT KAISER DOESN'T PROVIDE MEMBERS WITH SPECIFIC INFORMATION ON HOW INDIVIDUAL DOCTORS PERFORM AT US HEALTHCARE AN HMO BASED IN BLUE BELL PA INDEPENDENT PHYSICIAN PRACTICES ARE EVALUATED FOR CREDENTIALS AND FOR SUCH ISSUES AS THE QUALITY OF THEIR PATIENT CHARTS AND THE NUMBER OF PATIENTS THEY SEE PER HOUR IF A DOCTOR SEES 10 PATIENTS AN HOUR IT'S HARD TO IMAGINE THAT HE HAS TIME TO LISTEN TO THE CONCERNS OF HIS PATIENTS SAYS STEVE ZATZ PRESIDENT OF US QUALITY ALGORITHMS THE QUALITY MEASUREMENT UNIT OF US HEALTHCARE BOTH KAISER PERMANENTE AND US HEALTHCARE SAY PATIENTS CAN EASILY SWITCH DOCTORS IF THEY DISLIKE THEIR CURRENT ONE MEANTIME HEALTH ORGANIZATIONS SUCH AS UNITED HEALTHCARE CORP IN MINNEAPOLIS ARE DEVELOPING REPORT CARDS THAT MEASURE THE PERFORMANCE OF A HEALTH PLAN ACROSS A VARIETY OF MEDICAL INDICATORS VASTLY BETTER AND MORE INFORMATION IS GOING TO BE AVAILABLE TO CONSUMERS ON THE QUALITY OF THEIR HEALTH CARE DR ELLWOOD SAYS DATA ON HOW AN ORGANIZATION PERFORMS WILL BE MORE USEFUL TO CONSUMERS THAN DATA ON DOCTORS HE SAYS ONE REASON STUDIES SHOW THE TRACK RECORD OF AN INSTITUTION IS A BETTER PREDICTOR OF QUALITY THAN THAT OF THE INDIVIDUALS WORKING IN IT NEVERTHELESS SOME SKEPTICS WORRY THAT CONCERN ABOUT SOARING HEALTH COSTS WILL PROMPT SOME ORGANIZATIONS TO SHARPLY RESTRICT ACCESS TO SPECIALISTS FOR INSTANCE AND THE MAYO CLINIC SAYS MANY MANAGEDCARE PROGRAMS ALREADY REFUSE TO PAY FOR PATIENTS WHO JOURNEY TO THE RENOWNED HEALTHCARE FACILITY IN ROCHESTER MINN FOR SECOND OPINIONS OR TREATMENT FOR COMPLICATED CASES IN THEORY AT LEAST SUCH PRACTICES COULD PUT HEALTH PLANS AT A DISADVANTAGE IN THE COMPETITION FOR PATIENTS UNDER A NEW HEALTH SYSTEM MEANWHILE EVEN ADMINISTRATORS OF THE HEALTH PLANS ACKNOWLEDGE THAT LESSTHANSCIENTIFIC INFORMATION FIGURES IN A PATIENT'S CHOICE OF PHYSICIAN KAISER'S DR CROSSON SAYS HE PICKED HIS INTERNIST BECAUSE THEY USED TO LIVE IN THE SAME NEIGHBORHOOD AND WE USED TO PLAY SOFTBALL TOGETHER SEE RELATED ARTICLE MEDICAL MAZE HEALTHCARE EXPERTS DEVISING CLINTON PLAN FACE STICKY QUESTIONS HOW TO FINANCE THE PROGRAM AND WHAT IT WILL INCLUDE ARE AMONG THE TOP ISSUES HUGE STAKES FOR THE PRESIDENT WSJ MARCH 11 1993 9303110107 930311 TECHNOLOGY & HEALTH ANGIOPLASTY EFFECTIVE IN HEART ATTACKS BALLOON METHOD FOR OPENING ARTERIES TO RIVAL DRUGS FOR CLOTS STUDIES SAY BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCH ON THE EMERGENCYROOM TREATMENT OF HEART ATTACKS TOOK A NEW TWIST AS NEW STUDIES INDICATED THAT QUICK REOPENING OF BLOCKED CORONARY ARTERIES WITH A TINY BALLOON MAY BE MORE EFFECTIVE IN STOPPING A HEART ATTACK THAN HIGHLY TOUTED DRUGS THAT DISSOLVE BLOOD CLOTS THE NEW REPORTS RAISED CONCERN THAT DOCTORS MAY ATTEMPT TO BEGIN USING THE BALLOON TECHNIQUE WITHOUT SUFFICIENT EXPERIENCE AND THAT HOSPITALS MAY PERMIT IT TO BE TRIED IN EMERGENCY ROOMS WITHOUT A STANDBY TEAM OF SURGEONS WHO COULD RESCUE THE PATIENT IF THE BALLOON TECHNIQUE SHOULD FAIL IT'S A PROVOCATIVE FINDING BUT IT'S SOMEWHAT CONTROVERSIAL CARDIOLOGIST ERIC TOPOL OF THE CLEVELAND OHIO CLINIC FOUNDATION SAID OF THE NEW STUDIES THE QUESTION IS HOW FAR THE BALLOON TECHNIQUE SHOULD BE TAKEN THAT IS SHOULD IT BE USED IN MOST HEART ATTACK PATIENTS BROUGHT INTO THE EMERGENCY ROOM OR ONLY IN THOSE WHO CAN'T BE TREATED WITH THE CLOTDISSOLVING DRUGS HE ASKED THE NEW STUDIES INVOLVE A TECHNIQUE GENERALLY CALLED BALLOON ANGIOPLASTY IT INVOLVES THREADING A THIN FLEXIBLE TUBE A CATHETER INTO TINY CORONARY ARTERIES THAT ADORN THE HEART MUSCLE AND NOURISH IT WITH OXYGENCARRYING BLOOD WHEN THE CATHETER REACHES A PORTION OF A CORONARY ARTERY THAT IS CLOGGED A TINY BALLOON AT THE TIP IS INFLATED REOPENING THE ARTERY TO BLOOD FLOW UNTIL NOW BALLOON ANGIOPLASTY HAS BEEN USED LARGELY AS A SCHEDULED PROCEDURE TO RELIEVE CHRONIC CHEST PAIN ANGINA CAUSED BY FATTY DEPOSITS THAT CLOG CORONARY ARTERIES AND RESTRICT BLOOD FLOW BUT IN RECENT YEARS SOME HEART SPECIALISTS HAVE SUCCESSFULLY USED ANGIOPLASTY AS AN EMERGENCY TREATMENT OF HEART ATTACKS MOST OF WHICH ARE CAUSED BY A BLOOD CLOT'S SUDDENLY BLOCKING A CORONARY ARTERY THE NEW STUDIES PUBLISHED IN THIS WEEK'S NEW ENGLAND JOURNAL OF MEDICINE INDICATE THAT EMERGENCY ANGIOPLASTY IS BETTER THAN CLOTDISSOLVING DRUGS IN STOPPING HEART ATTACKS WITHIN HOURS AFTER THEY BEGIN IN ONE STUDY CARRIED OUT AT EIGHT US HOSPITALS AND ONE FRENCH HOSPITAL 195 RANDOMLY PICKED HEART ATTACK PATIENTS UNDERWENT EMERGENCY ANGIOPLASTY WITHIN 12 HOURS AFTER THEY FIRST EXPERIENCED CHEST PAINS THEY WERE FIRST RUSHED INTO A LABORATORY WHERE AN XRAY PROCEDURE ANGIOGRAPHY REVEALED WHICH CORONARY ARTERY WAS BLOCKED THIS PROCEDURE SHOWED THAT IN 10 PATIENTS THE BLOCKAGE WASN'T SEVERE ENOUGH TO WARRANT ANGIOPLASTY AND IN ANOTHER 10 PATIENTS THE BLOCKAGE WAS SO SEVERE THAT THE PATIENTS WOULD BE BEST TREATED BY EMERGENCY CORONARY BYPASS SURGERY AMONG THE 175 PATIENTS WHO UNDERWENT EMERGENCY ANGIOPLASTY THE BLOCKED ARTERIES WERE FULLY REOPENED IN 170 AND PARTIALLY REOPENED IN FOUR IN ONLY ONE PATIENT DID THE BALLOON FAIL TO RESTORE BLOOD FLOW ACCORDING TO THE RESEARCH TEAM LED BY CINDY L GRINES OF THE WILLIAM BEAUMONT HOSPITAL IN ROYAL OAK MICH WHAT SUBSEQUENTLY HAPPENED TO THESE ANGIOPLASTYTREATED PATIENTS WAS COMPARED WITH THE FATES OF 200 RANDOMLY PICKED HEART PATIENTS WHO WERE TREATED WITH GENENTECH'S ACTIVASE BRAND OF THE BLOODCLOT DISSOLVER TISSUE PLASMINOGEN ACTIVATOR OR TPA GENENTECH INC IS 60OWNED BY SWISS DRUG COMPANY ROCHE HOLDING LTD THE RESULTS INDICATED THAT ANGIOPLASTY AVOIDS THE BLEEDING EPISODES THAT ARE AN INHERENT PROBLEM WITH ALL DRUGS THAT DISSOLVE BLOOD CLOTS FOUR OF THE PATIENTS TREATED WITH THE TPA CLOT DISSOLVER SUFFERED FATAL STROKES FROM BLOODVESSEL HEMORRHAGING WHEREAS NONE OF THE ANGIOPLASTY PATIENTS HAD STROKES FROM SUCH BLEEDING SECOND HEART ATTACKS OR DEATHS OCCURRED IN THE HOSPITAL IN 12 OF THE PATIENTS TREATED WITH THE CLOT DISSOLVER VS 5 OF THOSE TREATED WITH ANGIOPLASTY SIX MONTHS LATER HEART ATTACKS OR DEATHS STRUCK NEARLY 17 OF PATIENTS TREATED WITH CLOT DISSOLVER COMPARED WITH 85 OF ANGIOPLASTY PATIENTS THESE DATA SUGGEST THAT WHEN THE NECESSARY FACILITIES AND PERSONNEL ARE AVAILABLE IMMEDIATE ANGIOPLASTY IS AN ATTRACTIVE ALTERNATIVE TO THE CLOT DISSOLVERS AND MAY EVEN BE PREFERABLE FOR HIGHRISK PATIENTS THE RESEARCH TEAM CONCLUDED A SECOND STUDY CARRIED OUT IN THE NETHERLANDS FOUND SIMILAR RESULTS WHEN EMERGENCY ANGIOPLASTY WAS COMPARED WITH STREPTOKINASE THE CLOTDISSOLVER SOLD BY TWO SWEDISH DRUG MAKERS ASTRA AB WHICH SELLS IT AS STREPTASE AND KABI PHARMACIA A UNIT OF PROCORDIA AB WHICH USES THE TRADE NAME KABIKINASE A THIRD STUDY AT THE MAYO CLINIC IN ROCHESTER MINN FOUND THAT EMERGENCY ANGIOPLASTY AND GENENTECH'S TPA WERE EQUALLY EFFECTIVE IN THE AMOUNT OF HEART MUSCLE THEY SAVED FROM DAMAGE DR TOPOL IN CLEVELAND CALLED THE FINDINGS A LANDMARK CONCLUSION IN THAT WE NOW HAVE A VERY GOOD ALTERNATIVE TO THE CLOTDISSOLVERS HOWEVER HE SAID THAT THERE'S SOME WORRY THAT IT COULD BECOME A KIND OF FAD OR CRAZE WHERE INEXPERIENCED DOCTORS AND ILLEQUIPPED HOSPITALS WOULD BEGIN TRYING EMERGENCY ANGIOPLASTY IN AN ACCOMPANYING EDITORIAL TWO HEART SPECIALISTS CAUTIONED ONLY 18 OF THE HOSPITALS IN THE US HAVE THE CAPABILITY OF PERFORMING ANGIOPLASTY AND EVEN FEWER CAN DO IT ON AN EMERGENCY BASIS MOREOVER THEY ADDED IN THE THREE STUDIES 5 OF THE PATIENTS SCHEDULED FOR ANGIOPLASTY HAD TO HAVE EMERGENCY CORONARY BYPASS SURGERY THIS MEANS THAT HOSPITALS ATTEMPTING EMERGENCY ANGIOPLASTY NEED TO HAVE A TEAM OF SURGEONS ON STANDBY THAT CAN RUSH IN AND DO A BYPASS OPERATION IF NECESSARY IN SHORT THE STRATEGY OF IMMEDIATE ANGIOPLASTY FOR ACUTE MYOCARDIAL INFARCTION HAS LIMITED APPLICABILITY BECAUSE OF THE SEVERELY RESTRICTED ACCESSIBILITY OF THE PROCEDURE SAID THE EDITORIAL BY RICHARD A LANGE AND L DAVID HILLIS OF THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER IN DALLAS IN CONTRAST CLOTDISSOLVER THERAPY IS WIDELY AVAILABLE AND CLEARLY BENEFICIAL IN THIS PATIENT POPULATION THEY SAID GENENTECH ISSUED A STATEMENT SAYING THE STUDIES AREN'T LIKELY TO AFFECT THE USE OF THROMBOLYTIC CLOTDISSOLVING THERAPY AS AN IMPORTANT STANDARD OF CARE IN THE TREATMENT OF HEART ATTACKS IT CALLED ANGIOPLASTY A VIABLE OPTION FOR CERTAIN HIGHRISK HEART ATTACK PATIENTS A US SPOKESMAN FOR ASTRA SAID THAT THE NUMBER OF PATIENTS IN THE STUDIES IS SMALL COMPARED WITH THE MORE THAN 100000 PATIENTS INVOLVED IN TESTS OF THE CLOT DISSOLVERS THIS RAISES QUESTIONS OF THE NEED FOR FURTHER STUDY 9303110106 930311 CITRUS CROP IN 1993 IS EXPECTED TO RISE 26 DUE TO FLORIDA OUTPUT WASHINGTON THE AGRICULTURE DEPARTMENT CITING A BIG INCREASE IN THE FLORIDA ORANGE CROP PREDICTED THAT THIS YEAR'S TOTAL CITRUS CROP WILL RISE 26 FROM LAST SEASON TO 153 MILLION TONS TOTAL ORANGE PRODUCTION IS FORECAST AT 113 MILLION TONS 27 MORE THAN LAST SEASON AND UP SLIGHTLY FROM THE FEB 1 ESTIMATE THE AGENCY PREDICTED THAT GRAPEFRUIT PRODUCTION ALSO WILL INCREASE 27 FROM LAST SEASON TO 255 MILLION TONS UP SLIGHTLY FROM THE FEB 1 FORECAST AGAIN THE AGENCY CITED A LARGE FLORIDA CROP THE PRODUCTION OF WINTER POTATOES IS ESTIMATED AT 259 MILLION HUNDREDWEIGHT 14 BELOW THE PREVIOUS YEAR AND THE SAME AS LAST MONTH'S FORECAST 9303110105 930311 WHO'S NEWS GE BOOSTED WELCH'S INCENTIVES IN 1992 PROXY DATA SHOW CHAIRMAN'S SALARY AND BONUS CLIMBED 9 AS COMPANY BID TO KEEP HIM AT THE HELM BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GENERAL ELECTRIC CO'S CHAIRMAN JOHN F WELCH JR LOVES HIS JOB AND THE BOARD WANTS TO KEEP IT THAT WAY DIRECTORS LAST YEAR VOTED THE 57YEAROLD MR WELCH TWO LONGTERM INCENTIVE AWARDS VALUED AT MILLIONS OF DOLLARS INCLUDING ONE THAT REQUIRES HIM TO STAY UNTIL RETIREMENT ACCORDING TO THE COMPANY'S PROXY STATEMENT IN 1992 MR WELCH'S SALARY AND BONUS ROSE 9 TO 35 MILLION FROM 32 MILLION THE PREVIOUS YEAR IN ADDITION MR WELCH RECEIVED 67 MILLION FROM STOCK RIGHTS EXERCISED IN 1992 BASED ON THE INCREASE IN GE'S STOCK PRICE OVER A SIXYEAR PERIOD IN 1991 HE EXERCISED STOCKAPPRECIATION RIGHTS VALUED AT ALMOST 19 MILLION MR WELCH ONE OF THE NATION'S MOST ADMIRED EXECUTIVES HAS BEEN AMONG THOSE MENTIONED RECENTLY AS A POSSIBLE SUCCESSOR TO JOHN F AKERS AS CHIEF EXECUTIVE OFFICER OF INTERNATIONAL BUSINESS MACHINES CORP HOWEVER GE RESPONDS TO SUCH SPECULATION BY SAYING THAT MR WELCH WHO ALSO HOLDS THE TITLE OF CHIEF EXECUTIVE OFFICER LOOKS FORWARD TO COMPLETING HIS CAREER WITH GE WHERE HE HAS BEEN VERY HAPPY FOR 32 YEARS ACCORDING TO THE PROXY STATEMENT THE CONGLOMERATE'S BOARD TOOK STEPS LAST YEAR TO MAKE STAYING ON WORTH MR WELCH'S WHILE ONE LONGTERM INCENTIVE AWARD VALUED AT 78 MILLION AT THE TIME IT WAS GRANTED REQUIRES HIM TO REMAIN CEO DURING THE VESTING PERIOD WHICH BEGINS THREE YEARS AFTER THE GRANT DATE AND EXTENDS TO RETIREMENT GE'S MANDATORY RETIREMENT AGE FOR EXECUTIVES IS 65 THE OTHER AWARD OF 150000 STOCKAPPRECIATION RIGHTS IS EXERCISABLE IN FOUR EQUAL INSTALLMENTS BEGINNING ONE YEAR AFTER THE GRANT THE RIGHTS HAVE NO VALUE IF GE'S STOCK PRICE IS BELOW 80 A SHARE THE PRICE ON THE DATE THE RIGHTS WERE GRANTED DURING MR WELCH'S 12YEAR LEADERSHIP THE PROXY MATERIAL NOTED GE'S MARKET VALUE HAS INCREASED BY ABOUT 60 BILLION DURING 1992 GE SHARES TRADED BETWEEN 74 AND 8750 A SHARE AND WERE TRADING LATE YESTERDAY AT 88 UP 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AT THE END OF 1992 MR WELCH HELD STOCK RIGHTS WORTH 165 MILLION MR WELCH IS GE'S HIGHESTPAID HEADQUARTERS EXECUTIVE BY A CONSIDERABLE MARGIN EDWARD E HOOD JR VICE CHAIRMAN AND EXECUTIVE OFFICER WAS PAID SLIGHTLY MORE THAN 2 MILLION LAST YEAR TWO OTHER EXECUTIVES BRIAN H ROWE PRESIDENT AND CHIEF EXECUTIVE OF GE AIRCRAFT ENGINES AND PAOLO FRESCO VICE CHAIRMAN AND EXECUTIVE OFFICER EACH WERE PAID ABOUT 13 MILLION IN SALARY AND BONUS LAST YEAR 9303110104 930311 INTERNATIONAL YELTSIN SEEKS A COMPROMISE WITH CONGRESS BUT AS SESSION PROGRESSED THERE WERE NO SIGNS OF POWERSHARING PACT BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN STRUGGLING TO KEEP CONTROL OVER ECONOMIC REFORMS STRODE INTO THE OPENING DAY OF THE SPECIAL SESSION OF THE CONGRESS OF PEOPLE'S DEPUTIES SAYING HE THOUGHT A COMPROMISE COULD BE FOUND ON SHARING POWER WITH THE CONSERVATIVE LEGISLATURE BUT COMPROMISE WAS NOWHERE TO BE FOUND THE CONGRESS IS PUSHING THE PRESIDENT TOWARD DEEP AND TRAGIC DELIBERATIONS OVER WHAT DECISION HE MUST TAKE TO SAVE REFORMS AND DEMOCRACY THE PRESIDENT'S SPOKESMAN VYACHESLAV KOSTIKOV TOLD JOURNALISTS HE WASN'T MORE SPECIFIC IN THE PAST FEW WEEKS THE PRESIDENT HAD MET WITH POLITICAL GROUPS IN AN ATTEMPT TO SET THE FOUNDATIONS FOR A COMPROMISE AND WHEN THE SESSION OPENED MANY CENTRISTS AND LIBERALS CALLED FOR AN END TO THE CONFLICT THAT HAS BROUGHT CONSTRUCTIVE POLITICAL ACTIVITY IN RUSSIA NEARLY TO A STANDSTILL BUT THE GAP BETWEEN THE PRESIDENT AND THE CONGRESS WHICH WAS ELECTED IN 1990 WHEN RUSSIA WAS STILL PART OF THE SOVIET UNION AND THE COMMUNIST PARTY RULED WIDENED EVEN FURTHER AS THE DAY PROGRESSED FROM THE OPENING SPEECH BY PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV ONE AFTER ANOTHER DELEGATES ASSAILED THE ECONOMIC REFORMS CARRIED OUT IN THE PAST YEAR UNDER MR YELTSIN'S LEADERSHIP MR KHASBULATOV'S DEPUTY NIKOLAI RYABOV EVEN CONTENDED THAT NOBODY HAS PROVED THAT THE ECONOMIC COURSE THE GOVERNMENT IS PURSUING IS RIGHT FOR THIS COUNTRY IN FACT I THINK THAT AN EFFECTIVE MARKET ECONOMY IS NONSENSE LATER IN THE SESSION THE CONGRESS PRESIDENT AND PRESIDENT YELTSIN STAKED OUT POSITIONS ON HOW THE LEGISLATURE AND EXECUTIVE COULD SHARE POWER UNTIL A NEW CONSTITUTION IS PASSED BUT THE PROPOSALS TURNED THE GAP BETWEEN THE TWO SIDES INTO A CHASM THE PRESIDENT PROPOSED THAT UNTIL A NEW CONSTITUTION IS COMPLETED THE LEGISLATURE INTRODUCE NO NEW LAWS AND THE PRESIDENT MAKE NO NEW DECREES THAT WOULD AFFECT THE PRESENT BALANCE OF POWER THE GOVERNMENT WOULD RETAIN CONTROL OVER ALL ECONOMIC MATTERS INCLUDING CREDIT AND MONETARY POLICY AND INSTITUTIONS INTEGRAL TO THE SUCCESS OF ECONOMIC REFORMS SUCH AS THE CENTRAL BANK WOULD BE JOINTLY CONTROLLED BY PARLIAMENT AND THE GOVERNMENT GOVERNMENT OFFICIALS OFTEN COMPLAIN THAT THE CENTRAL BANK NOW UNDER PARLIAMENT'S CONTROL HAS CONTRIBUTED TO INFLATION OF 25 A MONTH BY ISSUING TOO MANY CREDITS THE PROPOSAL FROM THE PRESIDIUM ON THE OTHER HAND WOULD TURN THE PRESIDENT INTO A HEAD OF STATE WITH NO SPECIAL POWERS TO RULE BY DECREE OR APPOINT MINISTERS THE GOVERNMENT WOULD HANDLE ECONOMIC MATTERS BUT BE ANSWERABLE TO PARLIAMENT I DON'T SEE A COMPROMISE BECAUSE THE OPPOSITION SIDE ISN'T GOING TOWARD ANY COMPROMISE SAID PYOTR FILIPOV A RADICAL DEMOCRAT DEPUTY AND ADVISER TO MR YELTSIN THEY THINK THEY HAVE THE RIGHT RELYING ON THE MAJORITY TO TURN THE PRESIDENT INTO A QUEEN OF ENGLAND THAT IS A FIGUREHEAD THE CONGRESS PRESIDIUM'S PROPOSAL DIDN'T PASS ON THE FIRST VOTE BUT DISCUSSION OF IT WAS TO CONTINUE TODAY A PROPOSAL TO IMPEACH THE PRESIDENTSOMETHING THAT HAS BECOME A VIRTUAL RITUAL AT CONGRESS SESSIONS DREW A SIGNIFICANTLY HIGHER SUPPORT THAN AT THE LAST SESSION ALTHOUGH STILL NOT ENOUGH TO PASS OFFICIALS FROM THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES ARE TO MEET THIS WEEK IN HONG KONG IN PREPARATION FOR THE JULY SUMMIT OF THEIR HEADS OF STATE THERE WERE INDICATIONS THAT THE MEETING MIGHT PRODUCE A STATEMENT DESIGNED TO SIGNAL THE G7'S SUPPORT FOR MR YELTSIN DETAILS OF A WESTERN AID PROGRAM ARE STILL BEING NEGOTIATED 9303110103 930311 FED TAKING SECOND LOOK AT BNL CASE ISSUES DETAILED SUBPOENA FOR DOCUMENTS BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE BOARD IS MAKING A SECOND TRY AT INVESTIGATING WHETHER ROME'S BANCA NAZIONALE DEL LAVORO VIOLATED US BANKING LAWS IN A SERIES OF HIDDEN LOANS ISSUED BY ITS ATLANTA BRANCH TO IRAQ A SPOKESMAN FOR THE ITALIAN GOVERNMENTOWNED BANK CONFIRMED REPORTS THAT FEDERAL RESERVE INVESTIGATORS HAVE ISSUED A DETAILED SUBPOENA FOR BNL DOCUMENTS RELATED TO THE CASE BNL INSISTS THAT THE CASE WAS A 21 BILLION FRAUD PERPETRATED ON IT BY THE MANAGER OF ITS ATLANTA BRANCH CHRISTOPHER DROGOUL THE FED'S NEW MOVE WHICH COULD TRIGGER A BROADER REEXAMINATION OF THE CASE BY THE FEDERAL GOVERNMENT WAS REPORTED TUESDAY BY THE FINANCIAL TIMES OF LONDON A FED OFFICIAL REFUSED TO COMMENT BNL IS SUING THE US IN THE FEDERAL CLAIMS COURT HERE TO COLLECT 370 MILLION IN US AGRICULTURE DEPARTMENTINSURED COMMODITY LOANS THAT BNLATLANTA EXTENDED TO IRAQ WHICH LATER DEFAULTED IF THE NEW FED INQUIRY FINDS THAT BNL OFFICIALS IN ROME KNEW OF THE ALLEGED FRAUD IT WOULD GIVE THE JUSTICE DEPARTMENT GROUNDS TO OPPOSE THE CLAIM TO WHICH IT HASN'T RESPONDED TO SO FAR SUCH A FINDING COULD ALSO CHANGE THE JUSTICE DEPARTMENT'S FRAUD CASE AGAINST MR DROGOUL WHO RENOUNCED AN EARLIER GUILTY PLEA AND IS SCHEDULED FOR TRIAL IN THE FALL THE JUSTICE DEPARTMENT ALSO MAY APPOINT A SPECIAL PROSECUTOR TO INVESTIGATE THE BUSH ADMINISTRATION'S HANDLING OF THE CASE FULFILLING A CAMPAIGN PLEDGE BY MR CLINTON LAST FALL SEPARATELY A COMMITTEE OF THE ITALIAN SENATE OPENED A NEW INVESTIGATION INTO THE CASE YESTERDAY ACCORDING TO LAWYERS INVOLVED IN THE SPRAWLING CASE WHO ASKED TO REMAIN ANONYMOUS FEDERAL RESERVE INVESTIGATORS VISITED ROME IN JANUARY AND HAVE INTERVIEWED SEVERAL CURRENT AND FORMER BANK EMPLOYEES WHO MAY HAVE KNOWN ABOUT IRAQ'S DEALINGS WITH BNLATLANTA BNL MAY HAVE PROVOKED THE FED'S SECOND LOOK AT THE CASE BY FIRING AT LEAST THREE MIDDLELEVEL ROME OFFICIALS IN DECEMBER WHO WERE EARLIER NAMED IN US COURT HEARINGS AS HAVING KNOWLEDGE OF THE BNLATLANTA LOANS WHICH IRAQ USED TO BUY MILITARY WEAPONRY A SPOKESMAN FOR BNL SAID THE DISMISSALS WERE FOR ADMINISTRATIVE REASONS LUIGI SARDELLI 64 YEARS OLD A FORMER US REGIONAL MANAGER FOR BNL IN NEW YORK SAID HE WAS RECENTLY INTERVIEWED BY INVESTIGATORS FOR THE FED HE SAID THEY DESCRIBED A CONTINUING INVESTIGATION AND WANTED TO KNOW MORE ABOUT TESTIMONY HE GAVE LAST SEPTEMBER MR SARDELLI HAS ASSERTED THAT WHEN HE TRIED TO ALERT ROME ABOUT THE IRAQI LOANS BNL RESPONDED BY INVESTIGATING HIM HE RESIGNED FROM THE BANK IN APRIL 1989 THE FED HASN'T COVERED ITSELF WITH GLORY IN THE CASE WHICH BEGAN WHEN BNLATLANTA INVENTED A SECOND SET OF BOOKS THAT FOOLED FEDERAL AUDITORS FOR THREE YEARS UNTIL TWO EMPLOYEES AT THE ATLANTA BRANCH REVEALED THE SITUATION IN JULY 1989 LAST FALL DURING A SENTENCING HEARING FOR MR DROGOUL PAUL WILLINGHAM JR GENERAL COUNSEL FOR THE FEDERAL RESERVE IN ATLANTA SAID HE HAD NO RECOLLECTION OF FED MEMOS DISCUSSING THE POLITICAL SENSITIVITY OF THE CASE ONE OF THEM EXPLAINED THAT US INVESTIGATORS WEREN'T ALLOWED TO VISIT ROME IN 1989 BECAUSE OF OBJECTIONS BY THE ITALIAN GOVERNMENT 9303110102 930311 MARK IV BEGINS OFFER TO BUY DEBENTURES DUE MARCH 15 1999 AMHERST NY MARK IV INDUSTRIES INC BEGAN A TENDER OFFER TO BUY BACK ABOUT 1902 MILLION PRINCIPAL AMOUNT OF ITS OUTSTANDING 13 3/8 SUBORDINATED DEBENTURES DUE MARCH 15 1999 AT A PRICE OF 113250 PER 1000 PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE DATE OF ACCEPTANCE THE OFFER EXPIRES MIDNIGHT APRIL 6 1993 UNLESS EXTENDED COMPLETION OF THE OFFER IS CONDITIONED UPON AMONG OTHER THINGS THE SALE OF AT LEAST 225 MILLION PRINCIPAL AMOUNT OF THE COMPANY'S SENIOR SUBORDINATED NOTES DUE 2003 WHICH WILL HAVE A LOWER INTEREST COST AND LATER MATURITY THAN THE 13 3/8 DEBENTURES BEAR STEARNS & CO IS MANAGING THE DEAL MARK IV IS A DIVERSIFIED MANUFACTURER OF PRODUCTS USED IN POWER TRANSFER AND FLUID HANDLING MASS TRANSIT AND TRAFFIC CONTROL AND PROFESSIONAL AUDIO 9303110101 930311 POLITICS & POLICY AMERICANS LIKE CLINTON'S PERFORMANCE BUT WITH GROWING DOUBTS POLL SHOWS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICANS GETTING TO KNOW THEIR NEW PRESIDENT AND FIRST LADY BY AND LARGE LIKE WHAT THEY SEE ALTHOUGH RESERVATIONS ARE GROWING ALONG WITH SUPPORT A NEW WALL STREET JOURNAL/NBC NEWS POLL FINDS THAT 57 OF THE 1503 ADULTS SURVEYED APPROVE OF BILL CLINTON'S PERFORMANCE AS PRESIDENT UP FROM 51 SHORTLY AFTER HE TOOK OFFICE IN JANUARY AT THE SAME TIME THE PERCENTAGE OF PEOPLE DISAPPROVING OF HIS HANDLING OF THE JOB ALSO INCREASED TO 26 FROM 16 AS MR CLINTON'S POLICIES HAVE BECOME BETTER KNOWN MORE AND MORE PEOPLE ARE FORMING OPINIONS OF HIM WHICH ACCOUNTS FOR WHY BOTH THE APPROVAL AND DISAPPROVAL RATINGS ARE RISING THE POLL ALSO SHOWS AN AMBIVALENCE ABOUT HILLARY RODHAM CLINTON WITH MOST AMERICANS HOLDING A POSITIVE OPINION OF HER BUT WITH MORE RESERVATIONS ABOUT HER ROLE IN THE ADMINISTRATION OVERALL THE POLL WHICH WAS CONDUCTED FRIDAY THROUGH TUESDAY FOUND THAT 56 OF AMERICANS HAVE A POSITIVE VIEW OF PRESIDENT CLINTON WHILE 26 HAVE A NEGATIVE VIEW BILL CLINTON IS A PRESIDENT WHO HAS TAKEN ON A LOT AND THE PUBLIC GIVES HIM A THUMBSUP SIGN AFTER THE FIRST 50 DAYS CONCLUDE DEMOCRATIC POLLSTER PETER HART AND REPUBLICAN POLLSTER ROBERT TEETER WHO CONDUCTED THE POLL FOR THE JOURNAL AND NBC MR TEETER NOTES THAT WHILE MR CLINTON'S APPROVAL RATING IS ABOUT EQUAL TO THAT OF HIS THREE PREDECESSORS AT THIS POINT IN THEIR PRESIDENCIES HIS DISAPPROVAL RATING IS ABOUT TWICE AS HIGH AS THEIRS WERE A REFLECTION OF THE POLARIZING EFFECT OF MR CLINTON'S ACTIVISM STILL THE SOLID PUBLIC ASSESSMENT OF MR CLINTON CONTRASTS SHARPLY WITH A CRITICAL VIEW TOWARD HIS GOP OPPONENTS BY 62 TO 25 AMERICANS BELIEVE CONGRESSIONAL REPUBLICANS OPPOSE MR CLINTON'S ECONOMIC PROGRAM FOR POLITICAL REASONS RATHER THAN BECAUSE THEY ARE INTERESTED IN OFFERING A REALISTIC ALTERNATIVE EVEN AMONG REPUBLICANS ONLY 46 THINK THE GOP SEEKS A REAL ALTERNATIVE WHILE 41 SAY THE OPPOSITION IS POLITICAL IN NATURE AMONG ALL AMERICANS 51 THINK CONGRESS WILL PASS A MAJOR ECONOMIC PLAN THIS YEAR WHILE 41 DON'T EXPECT ACTION ALL TOLD THE NUMBERS SUGGEST THAT MR CLINTON HAS OVERCOME HIS ROCKY FIRST WEEKS IN OFFICE TO GAIN THE PUBLIC'S CONFIDENCE THE UPROAR OVER EFFORTS TO EASE THE BAN ON HOMOSEXUALS IN THE MILITARY AND THE WITHDRAWAL OF ZOE BAIRD AND KIMBA WOOD AS ATTORNEY GENERAL CANDIDATES DON'T APPEAR TO HAVE INFLICTED LASTING DAMAGE AND HAVE LARGELY BEEN OVERSHADOWED BY MR CLINTON'S EFFORTS TO STRENGTHEN THE ECONOMY THE POLL ALSO FINDS THAT AMERICANS APPROVE OF MR CLINTON'S HANDLING OF THE ECONOMY BY A MARGIN OF 52 TO 28 AND IT SUGGESTS THAT HE SO FAR ISN'T PAYING A HEAVY PRICE FOR DISREGARDING HIS CAMPAIGN PLEDGE TO CUT TAXES FOR THE MIDDLE CLASS AND PROPOSING TO RAISE TAXES INSTEAD MIDDLEINCOME PEOPLE STILL APPROVE OF HIS ECONOMIC PERFORMANCE 50 TO 30 THE STOCK MARKET HAS SURGED RECENTLY AMID SHARPLY FALLING INTEREST RATES ON THE QUESTION OF MR CLINTON'S OVERALL JOB PERFORMANCE THE PRESIDENT DRAWS HIS STRONGEST SUPPORT BY AGE FROM AMONG YOUNG PEOPLE AMONG HOUSEHOLDINCOME GROUPS HIS STRONGEST SUPPORT IS IN THE 20000TO50000 CATEGORY POLITICAL INDEPENDENTS APPROVE OF HIS PERFORMANCE BY A MARGIN OF BETTER THAN TWO TO ONE ON FOREIGN POLICY AN AREA THAT HAS BEEN OVERSHADOWED BY THE PRESIDENT'S EARLY CONCENTRATION ON DOMESTIC ISSUES 47 APPROVE OF HIS PERFORMANCE AND 22 DISAPPROVE THE POLL SUGGESTS THAT AMERICANS ARE OF TWO MINDS ABOUT THE ROLE BEING PLAYED BY MRS CLINTON OVERALL 54 VIEW HER POSITIVELY AND 23 VIEW HER NEGATIVELY COMPARED WITH A 5716 MARGIN IN JANUARY AND BY A MARGIN OF 54 TO 37 THEY APPROVE OF HER SELECTION TO HEAD HER HUSBAND'S HEALTHCARE REFORM EFFORT YET AT THE SAME TIME THEY APPROVE BY A MARGIN OF 48 TO 45 HER INVOLVEMENT IN THE DEVELOPMENT OF MAJOR ADMINISTRATION POLICIES FORTYSIX PERCENT SAY SHE HAS ABOUT THE RIGHT AMOUNT OF INFLUENCE IN THE ADMINISTRATION WHILE 38 SAY SHE HAS TOO MUCH INFLUENCE IN THE JANUARY JOURNAL/NBC POLL THE MARGIN WAS 50 TO 35 9303110100 930311 MEDICAL MAZE HEALTHCARE EXPERTS DEVISING CLINTON PLAN FACE STICKY QUESTIONS HOW TO FINANCE THE PROGRAM AND WHAT IT WILL INCLUDE ARE AMONG THE TOP ISSUES HUGE STAKES FOR THE PRESIDENT BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A WAR ROOM IN THE ORNATE OLD EXECUTIVE OFFICE BUILDING NEXT TO THE WHITE HOUSE THE ADVISERS TO PRESIDENT CLINTON LED BY HILLARY RODHAM CLINTON ARE MAPPING NOTHING LESS THAN A REVOLUTION BY MAY 1 THEY MUST COME UP WITH A PLAN TO EXPAND HEALTHCARE COVERAGE TO EVERY AMERICAN WHILE CURTAILING MEDICAL COSTS THAT IN THE PAST DECADE HAVE SOARED 150 TO MORE THAN 800 BILLION A YEAR AIDED BY HUNDREDS OF GOVERNMENT BUREAUCRATS CONGRESSIONAL AIDES AND OUTSIDE EXPERTS THEY ARE IN SHORT TRYING TO REDESIGN ONESEVENTH OF THE US ECONOMY IN THE NEXT 51 DAYS MR CLINTON MUST DEPEND ON THIS HEALTH PLAN EVEN MORE THAN ON HIS ECONOMIC PROGRAM TO WIN THE ALLEGIANCE OF THE VAST MIDDLE CLASS HE COURTED SO ASSIDUOUSLY DURING HIS ELECTION CAMPAIGN THE HEALTH PACKAGE WILL PROBABLY COST MORE AFFECT THE AVERAGE PERSON'S LIFE MORE AND STIR UP MORE CONTROVERSY THAN HIS PLAN TO REDUCE THE DEFICIT AND STIMULATE THE ECONOMY TO A LARGE EXTENT MR CLINTON HAS STAKED HIS PRESIDENCY ON THIS ISSUE ALL OUR EFFORTS TO STRENGTHEN THE ECONOMY WILL FAIL LET ME SAY THIS AGAIN I FEEL SO STRONGLY ABOUT IT ALL OUR EFFORTS TO STRENGTHEN THE ECONOMY WILL FAIL UNLESS WE ALSO TAKE THIS YEAR NOT NEXT YEAR NOT FIVE YEARS FROM NOW BUT THIS YEAR BOLD STEPS TO REFORM OUR HEALTHCARE SYSTEM MR CLINTON STRAYING FROM HIS PREPARED TEXT TOLD CONGRESS LAST MONTH HOWEVER MANY OF THE BOLD STEPS HE IS PROMISING HAVE YET TO BE DECIDED HIS HEALTHCARE TASK FORCE IS WRESTLING WITH A SLEW OF UNRESOLVED ISSUES IT MUST DECIDE WHETHER TO PROPOSE A SECOND ROUND OF TAX INCREASES TO HELP PAY FOR EXTENDING HEALTH INSURANCE TO THE 37 MILLION PEOPLE NOW LACKING IT THE TASK FORCE'S PRELIMINARY WORK PLAN ESTIMATES THAT UNIVERSAL ACCESS COULD COST THE GOVERNMENT AN ADDITIONAL 30 BILLION TO 90 BILLION A YEAR DEPENDING ON THE PROGRAM WHETHER TO PROPOSE SHORTTERM GOVERNMENT PRICE CONTROLS TO STEM THE RELENTLESS RISE IN MEDICAL FEES WHILE THE BROAD HEALTHCARE OVERHAUL LEGISLATION IS BEING DEBATED PASSED AND PUT INTO EFFECT HOW TO SET AND ENFORCE THE NATIONAL HEALTHCARE BUDGET THE PRESIDENT HAS PUBLICLY ADVOCATED BUT WHILE THOSE ISSUES REMAIN MUCH OF THE CLINTON ADMINISTRATION'S PLAN IS COMING INTO FOCUS BASED ON PUBLIC STATEMENTS TASK FORCE DOCUMENTS AND INTERVIEWS HERE IS WHAT THE US HEALTH SYSTEM WOULD LOOK LIKE IF THESE PLANS WERE ENACTED BY CONGRESS ALL WORKING PEOPLE WOULD BY LAW BE GUARANTEED A STANDARD PACKAGE OF HEALTH BENEFITS FROM THEIR EMPLOYERS LOWINCOME UNEMPLOYED PEOPLE WOULD GET THE SAME BENEFIT PACKAGE BUT IT WOULD BE FINANCED BY GOVERNMENT SUBSIDIES THE ELDERLY WOULD CONTINUE IN THE FEDERAL MEDICARE PROGRAM FOR NOW NO ONE WITH HIV NO ONE WITH A HEART MURMUR NO ONE WHO IS PREGNANT NO ONE WITH ANY OTHER MEDICAL CONDITION COULD BE DROPPED FROM OR DECLINED ENROLLMENT IN A HEALTH PLAN NO ONE WHO LOST A JOB OR CHANGED JOBS WOULD LOSE HEALTH BENEFITS TO HOLD DOWN COSTS NEW COMPETITION WOULD BE BROUGHT TO THE MEDICAL MARKET LARGE REGIONAL COOPERATIVES OF BUSINESSES AND INDIVIDUALS WOULD BE CREATED TO SHOP FOR THE BEST HEALTH PLAN AT THE BEST PRICE TO WIN THE BUSINESS OF THESE HUGE BUYERS DOCTORS HOSPITALS AND OTHER HEALTHCARE PROVIDERS WOULD BAND TOGETHER IN AN EFFORT TO OFFER THE HIGHESTQUALITY MEDICAL CARE AT THE LOWEST COST LARGE COMPANIES MANY OF WHICH ARE ACCUSTOMED TO UNDERWRITING THEIR OWN BENEFIT PACKAGES ARE LIKELY TO BE ALLOWED TO CONTINUE TO DO SO ALTHOUGH THAT ISN'T CERTAIN TO IMPOSE DISCIPLINE ON THE SYSTEM THE GOVERNMENT WOULD SET A BUDGET LIMITING THE AMOUNT THAT COULD BE SPENT ON HEALTHCARE COVERAGE IN THE US EACH YEAR AS A RESULT EACH INSURANCEPURCHASING COOPERATIVE WOULD HAVE A FIXED AMOUNT OF MONEY IT COULD SPEND ON COVERAGE ADMINISTRATION OFFICIALS INSIST THAT UNIVERSAL COVERAGE IS CRITICAL TO HOLDING DOWN MEDICAL COSTS WITHOUT IT HOSPITALS PAD THEIR BILLS FOR PAYING PATIENTS TO COVER CARE FOR THE UNINSURED INSURERS SEEK TO COVER ONLY THE RELATIVELY YOUNG AND HEALTHY PUSHING UP PREMIUMS FOR OTHERS AND DENYING ANY COVERAGE AT ALL TO SOME THE CLEAR WINNERS UNDER THE SYSTEM MR CLINTON ENVISIONS WOULD BE THE 37 MILLION AMERICANS WHO NOW LACK ANY HEALTH INSURANCE OF WHOM 56 ARE WORKING ADULTS AND 26 ARE CHILDREN ACCORDING TO THE EMPLOYEE BENEFITS RESEARCH INSTITUTE POOR PEOPLE NOW COVERED BY MEDICAID THE STATEFEDERAL HEALTH PROGRAM FOR LOWINCOME WOMEN AND CHILDREN WOULD PROBABLY DO BETTER TOO THE PLAN COULD LEAD TO ABOLITION OF MEDICAID A PROGRAM MANY DOCTORS SHUN BECAUSE REIMBURSEMENT RATES ARE SO LOW BUT MIDDLECLASS WORKING PEOPLE WITH COMFORTABLE BENEFIT PACKAGES SUCH AS UNION MEMBERS AND MANY WHITECOLLAR EMPLOYEES MAY BE STARTLED BY WHAT HEALTHCARE REFORM REALLY INVOLVES THE STANDARD BENEFIT PACKAGE THAT THE GOVERNMENT WOULD REQUIRE MIGHT BE LESS GENEROUS THAN THEIR CURRENT ONE CONSEQUENTLY THEY MIGHT HAVE TO PAY FOR EXTRA BENEFITS OUT OF THEIR OWN POCKETS THEIR TAXES MIGHT GO UP TO FINANCE UNIVERSAL COVERAGE THEY MAY ALSO HAVE LESS CHOICE MR CLINTON HOPES TO ENCOURAGE PEOPLE TO ENROLL IN NETWORKS OF DOCTORS AND HOSPITALS IN WHICH AS IN HEALTH MAINTENANCE ORGANIZATIONS MEMBERS PAY A FIXED ANNUAL PRICE AND RECEIVE ALL THE MEDICAL SERVICES THEY NEED THE IDEA IS TO DISCOURAGE THE COSTLY OUTOFCONTROL SYSTEM IN WHICH PEOPLE PAY FOR EACH SERVICE PERFORMED THEN SEEK REIMBURSEMENT FROM AN INSURANCE COMPANY BUT THE RESULT FOR SOME PEOPLE COULD BE THE LOSS OF A FAMILY DOCTOR THE TRADEOFF THE WHITE HOUSE WILL SAY REPEATEDLY IS PERSONAL ECONOMIC SECURITY IN THIS RICHEST OF ALL COUNTRIES THERE IS A GROWING SENSE OF PERSONAL VULNERABILITY AND PERSONAL INSECURITY BECAUSE OUR HEALTH SYSTEM HAS FAILED US MRS CLINTON SAID ON A RECENT TRIP TO HARRISBURG PA ONE OF MANY SHE PLANS TO PROMOTE THE HEALTH PLAN IF THE PLAN IS ENACTED SHE AND VARIOUS OFFICIALS SAY NO LONGER WILL ANY FAMILY HAVE TO WORRY ABOUT FINANCIAL RUIN FROM A FAMILY MEMBER'S ILLNESS NO LONGER WILL PEOPLE BE FORCED TO STAY STUCK IN A JOB FOR FEAR THAT CHANGING EMPLOYERS WILL MEAN A LOSS OF HEALTH INSURANCE THIS CONCEPT OF LARGE COMPETING NETWORKS TO POOL RISKS AND HOLD DOWN COSTS IS BASED ON AN IDEA CALLED MANAGED COMPETITION BUT MR CLINTON HAS NO MODEL FOR THE SYSTEM OF MANAGED COMPETITION THAT HE ENVISIONS THAT MODEL PER SE DOESN'T EXIST IN REAL LIFE IT'S A BLUEPRINT SAYS UWE REINHARDT A HEALTHCARE ECONOMIST AT PRINCETON UNIVERSITY IN NEW JERSEY TO GET FROM BLUEPRINT TO REAL LIFE WILL INVOLVE MANY PAINFUL DECISIONS AND MANY POLITICAL BATTLES HERE ARE SOME OF THE BIG QUESTIONS HOW DO YOU PAY FOR IT THAT HAS ALREADY BEEN PARTIALLY ANSWERED BUSINESS WOULD FOOT A LARGE PART OF THE BILL THE TASK FORCE'S PRELIMINARY WORK PLAN SUGGESTS THAT ALL EMPLOYERS PAY A PERCENTAGE PERHAPS 7580 OF THE COST OF A STANDARD PLAN FOR THEIR EMPLOYEES AND DEPENDENTS WHETHER THAT WOULD INCLUDE PARTTIME WORKERS IS STILL BEING DEBATED BUT THE GOVERNMENT TOO WOULD HAVE TO COUGH UP A LOT OF MONEY FOR SUBSIDIES TO HELP LOWINCOME UNEMPLOYED PEOPLE BUY HEALTH INSURANCE AND FOR TAX BREAKS TO HELP SMALL COMPANIES BUY EMPLOYEE PLANS IN THE EARLY YEARS OF THE NEW HEALTH SYSTEM TO DO THIS WOULD QUITE PROBABLY REQUIRE RAISING TAXES MR CLINTON HAS SAID HE WANTS TO RAISE THE FEDERAL TAXES ON CIGARETTES HIS BUDGET DIRECTOR LEON PANETTA HAS SAID PUBLICLY THAT THE ADMINISTRATION WILL PROBABLY PROPOSE INCREASES IN SIN TAXES NOT ONLY ON CIGARETTES BUT ALSO ON ALCOHOLIC BEVERAGES AND POSSIBLY OTHER PRODUCTS THAT ARE HAZARDOUS TO HEALTH THE TASK FORCE IS EXPLORING DOZENS OF OTHER TAX OPTIONS AS WELL FEARING THE POLITICAL FALLOUT FROM LABOR UNIONS AND THE MIDDLE CLASS IT HAS RULED OUT ONE OPTION PUSHED BY A NUMBER OF ECONOMISTS AND BACKED BY A WIDE ARRAY OF GROUPS FROM THE INSURANCE INDUSTRY TRADE ASSOCIATION TO THE NATIONAL GOVERNORS ASSOCIATION TAXING WORKERS FOR SOME OF THEIR EMPLOYERPROVIDED HEALTH BENEFITS INSTEAD THE GROUP IS LOOKING AT PLACING THE BURDEN ON EMPLOYERS BY ADDING A SURCHARGE BASICALLY A TAX TO THE HEALTH BENEFITS THEY PROVIDE THEIR WORKERS OR IT MIGHT ALSO LIMIT EMPLOYERS' ABILITY TO DEDUCT FROM TAXABLE INCOME THE COST OF PROVIDING HEALTH BENEFITS FOR THEIR WORKERS ANOTHER IDEA IS TO PUT A TAX ON THE GROSS RECEIPTS OF HOSPITALS DOCTORS AND OTHER PROVIDERS WHAT WOULD GO INTO THE STANDARD BENEFIT PACKAGE TO WHICH ALL AMERICANS WOULD BE ENTITLED THE PLAN CERTAINLY WILL INCLUDE A WIDE ARRAY OF PREVENTIVE SERVICES SUCH AS PRENATAL CARE BENEFITS IMMUNIZATIONS AND CANCER SCREENING ADMINISTRATION OFFICIALS BELIEVE THAT PREVENTIVE CARE NOT ONLY HELPS PEOPLE LEAD HAPPIER MORE PRODUCTIVE LIVES BUT ALSO SAVES MONEY IN TREATMENT COSTS LATER THE PACKAGE ALSO WILL CERTAINLY INCLUDE HOSPITALIZATION COVERAGE AND SOME MENTALHEALTH BENEFITS VICE PRESIDENT ALBERT GORE'S WIFE TIPPER IS WORKING ON MENTALHEALTH ISSUES WITH THE TASK FORCE MR CLINTON WOULD LIKE TO INCLUDE A PRESCRIPTIONDRUG BENEFIT IN THE PACKAGE THOUGH HIS ADVISERS AREN'T SURE WHETHER IT WOULD BE AFFORDABLE HE ALSO FAVORS INCLUSION OF SOME PROVISIONS IN THE STANDARD PACKAGE OR A SEPARATE PROGRAM TO HELP MAKE MORE AFFORDABLE LONGTERM CARE FOR THE ELDERLY CHRONICALLY ILL AND DISABLED BUT THIS TOO COULD BE TOO EXPENSIVE TO INCORPORATE RIGHT AWAY NEVERTHELESS THE STANDARD PACKAGE WOULD PROBABLY BE MORE EXTENSIVE THAN THE BARE BONES COVERAGE NOW REQUIRED BY SOME STATES HOW DO YOU SET AND ENFORCE THE NATIONAL HEALTH BUDGET ONE LEADING OPTION IS TO HAVE THE PRESIDENT CONGRESS OR BOTH APPOINT AN INDEPENDENT NATIONAL HEALTH BOARD WITH AUTONOMY SIMILAR TO THE FEDERAL RESERVE BOARD'S TO SET THE BUDGET AS WELL AS THE STANDARD BENEFIT PACKAGE THE BOARD WOULD PROBABLY INCLUDE REPRESENTATIVES OF DOCTORS HOSPITALS CONSUMERS AND MAYBE AN ECONOMIST OR OTHER HEALTH EXPERTS A CONFIDENTIAL PRELIMINARY WORK PLAN FOR THE TASK FORCE SUGGESTS THAT PER CAPITA STATE BUDGETS MIGHT BE IMPOSED WHICH WOULD LIMIT THE AMOUNT OF MONEY EACH HEALTH INSURANCE PURCHASING NETWORK COULD SPEND ON HEALTH PLANS EACH YEAR A NETWORK THAT EXCEEDED THE SPENDING LIMIT MIGHT BE SANCTIONED BY THE GOVERNMENT HOW THE BUDGET WOULD BE ULTIMATELY ENFORCED HAS YET TO BE DETERMINED BUT IT IS CLEAR THAT SETTING A LIMIT ON HEALTH SPENDING WOULD NOT MEAN THAT PEOPLE WOULDN'T BE ABLE TO GET MEDICAL CARE IN SAY DECEMBER IF THEIR NETWORK'S ANNUAL LIMIT HAD BEEN REACHED IN NOVEMBER IN FACT SOME ADVISERS ARE TALKING ONLY ABOUT EXPENDITURE TARGETS RATHER THAN EXPENDITURE CAPS AT THE OUTSET UNDER ONE IDEA THE NATIONAL HEALTH BOARD WOULD REVIEW WHY A SPENDING LIMIT HAD BEEN EXCEEDED AND IT WOULD TACKLE THE PROBLEM IF A CERTAIN MEDICAL TECHNOLOGY WAS PROVING EXPENSIVE BUT NOT VERY EFFECTIVE FOR EXAMPLE THE BOARD MIGHT DECIDE TO DROP IT FROM THE STANDARD BENEFIT PLAN ANOTHER WAY OF ENFORCING SPENDING CAPS MIGHT BE TO REDUCE THE ANNUAL INCREASE IN THE CEILING BY THE AMOUNT IT WAS EXCEEDED IN THE PREVIOUS YEAR CLINTON HEALTH ADVISERS INSIST THAT A NATIONWIDE HEALTH BUDGET DOESN'T MEAN SETTING THE PRICES OF THE THOUSANDS OF MEDICAL SERVICES PERFORMED BY DOCTORS HOSPITALS CLINICS COUNSELORS AND OTHER PROFESSIONALS IN A RECENT ARTICLE TWO PROMINENT MEMBERS OF THE WORKING GROUP ADVISING THE TASK FORCE PAUL STARR AND WALTER ZELMAN ARGUE THAT THE GOVERNMENT COULD SIMPLY DETERMINE A MAXIMUM ALLOWABLE RATE OF INCREASE IN BENCHMARK HEALTH INSURANCE PREMIUMS EACH YEAR WHAT HAPPENS TO HEALTH COSTS IN THE MEANTIME SHOULD SHORTTERM STOPGAP CONTROLS BE IMPOSED LAST YEAR NATIONWIDE HEALTH EXPENDITURES ROSE NEARLY 10 MORE THAN THREE TIMES THE OVERALL RATE OF INFLATION BETWEEN 1990 AND 1992 HEALTH SPENDING JUMPED FROM 121 OF THE NATION'S GROSS DOMESTIC PRODUCT ITS TOTAL SPENDING ON GOODS AND SERVICES TO NEARLY 14 EVEN IF THE ADMINISTRATION ACCOMPLISHES THE NEARLY IMPOSSIBLE FEAT OF GETTING A HEALTHCARE PLAN THROUGH CONGRESS THIS YEAR OFFICIALS ACKNOWLEDGE THAT IT WILL TAKE YEARS TO PHASE IN AND EXECUTE THE PACKAGE THEREFORE THE IMMEDIATE IMPORTANT QUESTION BECAUSE OF THE COMPLEXITY OF DEVELOPMENT OF MANAGED COMPETITION AND THE TIME IT'S GOING TO TAKE TO KICK IN IS WHETHER THERE WILL BE SOCALLED INTERIM PRICE CONTROLS OR OTHER FREEZE MECHANISMS SAYS JOHN HOFF A HEALTHCARE LAWYER IN WASHINGTON ONE ADMINISTRATION WORKING GROUP IS LOOKING AT OPTIONS FOR SHORTTERM CONTROLS AND PEOPLE INVOLVED IN THE TASK FORCE SAY MR CLINTON IS EAGER TO DO SOMETHING IMMEDIATELY TO HOLD DOWN COSTS HIS ADVISERS HAVE PREPARED A RANGE OF OPTIONS INCLUDING EXTENDING THE MEDICARE FEE SCHEDULE FOR PAYING DOCTORS AND HOSPITALS TO ALL PRIVATE INSURERS AND EVEN FREEZING ALL MEDICAL PRICES CURRENTLY MEDICARE REIMBURSES DOCTORS AT ABOUT 65 AND HOSPITALS AT 90 OF THE RATE THAT PRIVATE INSURERS PAY BUT TO FREEZE ANY PRICES EVEN IN GOVERNMENT PROGRAMS MR CLINTON WOULD NEED LEGISLATIVE AUTHORITY CONSEQUENTLY THE ADMINISTRATION IS ALSO LOOKING AT WAYS TO GET DOCTORS HOSPITALS DRUG MAKERS AND INSURERS TO HOLD DOWN PRICES VOLUNTARILY HOW CAN THE BURDEN OF BUYING EMPLOYEE HEALTH PLANS BE EASED FOR SMALL BUSINESS MR CLINTON WANTS ALL EMPLOYERS TO BE REQUIRED TO CONTRIBUTE TO THE COST OF HEALTH INSURANCE FOR THEIR EMPLOYEES JUST AS THEY MUST PAY INTO THE SOCIAL SECURITY FUND ON BEHALF OF THEIR WORKERS ADMINISTRATION OFFICIALS EXPECT SOME OF THE STRONGEST OPPOSITION TO THEIR HEALTH PACKAGE TO COME FROM SMALLBUSINESS GROUPS WHICH CONTEND THAT THE BURDEN OF BUYING HEALTH INSURANCE FOR THEIR WORKERS WOULD BREAK THEM TO EASE THE PAIN AND MUTE THE CRITICISM MR CLINTON WANTS TO OFFER FEDERAL ASSISTANCE IN THE EARLY YEARS OF THE NEW SYSTEM TO SMALL FIRMS NOT NOW PROVIDING HEALTH INSURANCE THIS ASSISTANCE WOULD PROBABLY TAKE THE FORM OF A TAX CREDIT BUT DETAILS HAVEN'T BEEN DECIDED HOWEVER 69 OF THE WORKERS IN SMALL BUSINESSES NOW HAVE EMPLOYERPROVIDED HEALTH BENEFITS ACCORDING TO THE EMPLOYEE BENEFITS RESEARCH INSTITUTE MORE THAN 90 OF WORKERS AT MEDIUM AND LARGE BUSINESSES HAVE COVERAGE HEALTH OFFICIALS EMPHASIZE THAT THE HEALTHINSURANCE PURCHASING NETWORKS WOULD GIVE SMALL BUSINESSES MARKET POWER THEY HAVE NEVER HAD AND THAT THE INSURANCEMARKET REFORMS WOULD MAKE BUYING INSURANCE FAR LESS OF A FINANCIAL BURDEN THAN IF A MANDATE WERE IMPOSED IN THE CURRENT SYSTEM FOR SMALL FIRMS ALREADY STRUGGLING TO PROVIDE HEALTH INSURANCE TO THEIR WORKERS THE PLAYING FIELD WOULD BE LEVELED BECAUSE COMPETITORS THAT DON'T PROVIDE SUCH BENEFITS WOULD BE FORCED TO DO SO HOW CAN MANAGED COMPETITION WORK IN RURAL AREAS SUCH AS MUCH OF ARKANSAS SOME ECONOMISTS ESTIMATE THAT AT LEAST A THIRD OF THE POPULATION WOULDN'T BENEFIT FROM THE NEW COMPETITION BECAUSE WHERE THEY LIVE IT IS HARD TO FIND ANY OBSTETRICIAN FOR EXAMPLE LET ALONE COMPETING NETWORKS OF DOCTORS AND HOSPITALS ADVISERS SAY THE SYSTEM WOULD WORK DIFFERENTLY IN RURAL AREAS IT WOULD SEEK TO ENCOURAGE WHATEVER DOCTORS AND HOSPITALS ARE OPERATING IN SUCH AREAS TO BAND TOGETHER IN EFFICIENT DELIVERY SYSTEMS RATHER THAN TO GENERATE PRICE WARS AMONG PROVIDERS AND INSURANCE COMPANIES SOME STATES MAY END UP HAVING TO REGULATE IN THE ABSENCE OF COMPETITION TO HOLD DOWN PRICES A STEP MANY DOCTORS FEAR WOULD OPEN THE DOOR TO NATIONAL PRICE CONTROLS THE TASK FORCE'S PRELIMINARY WORK PLAN WRITTEN BY IRA MAGAZINER THE WHITE HOUSE AIDE OVERSEEING THE GROUP'S DAYTODAY OPERATIONS SAYS STATES WHERE COMPETITION AMONG PLANS IS NOT POSSIBLE OR DESIRED MAY REGULATE PROVIDER FEES IN ORDER TO MEET THE BUDGET ALLPAYER SYSTEM ALL PAYERS OF HEALTHCARE BILLS THE GOVERNMENT A PRIVATE INSURER A BIG COMPANY OR AN INDIVIDUAL PAY THE SAME RATES SET BY THE GOVERNMENT FOR THE SAME MEDICAL SERVICE THE UNIFORM FEES WOULD BAR PROVIDERS FROM SHIFTING COSTS ONTO THOSE MORE ABLE TO PAY THE CLINTON ADMINISTRATION IS EXPLORING THE POSSIBILITY OF AT LEAST A TEMPORARY ALLPAYER STRUCTURE COMMUNITY RATING SETTING HEALTHINSURANCE PREMIUMS BASED ON THE AVERAGE COST OF PROVIDING MEDICAL SERVICES TO ALL PEOPLE IN A GEOGRAPHIC AREA WITHOUT ADJUSTING FOR EACH INDIVIDUAL'S MEDICAL HISTORY OR LIKELIHOOD OF USING SUCH SERVICES THE WHITE HOUSE IS LIKELY TO CALL FOR SOME FORM OF COMMUNITY RATING IN THE INSURANCE INDUSTRY FEEFORSERVICE AN ARRANGEMENT UNDER WHICH PATIENTS PAY DOCTORS HOSPITALS OR OTHER HEALTHCARE PROVIDERS FOR EACH SERVICE RENDERED MOST THEN SEEK REIMBURSEMENT FROM A PRIVATE INSURER OR THE GOVERNMENT GLOBAL BUDGET THE TERM COMMONLY USED TERM BY EXPERTS FOR PLACING A NATIONWIDE LIMIT ON OVERALL SPENDING FOR HEALTHCARE SERVICES THE CAP WOULD COVER BOTH PUBLIC AND PRIVATE SPENDING PRESIDENT CLINTON HAS SAID HE INTENDS TO PROPOSE A GLOBAL BUDGET SET BY AN INDEPENDENT NATIONAL HEALTH BOARD HEALTH INSURANCE PURCHASING COOPERATIVE THESE ARE LIKELY TO BE CRITICAL PIECES OF THE RESTRUCTURED HEALTHCARE SYSTEM MR CLINTON WILL PROPOSE THEY WOULD BE PURCHASING AGENTS FOR LARGE GROUPS OF EMPLOYERS IN A REGION WHICH WOULD SHOP FOR THE HIGHESTQUALITY HEALTH PLAN AT THE LOWEST PRICE THE HOPE IS THAT THE HPICS WOULD GIVE SMALL BUSINESSES THE BUYING MUSCLE THEY NOW LACK HEALTH MAINTENANCE ORGANIZATION A PREPAID HEALTHCARE PLAN UNDER WHICH PEOPLE ENROLL BY PAYING A SET ANNUAL FEE THEY THEN RECEIVE ALL THE MEDICAL SERVICES THEY NEED THROUGH A GROUP OF AFFILIATED DOCTORS AND HOSPITALS OFTEN WITH NO ADDITIONAL COPAYMENTS OR FEES INDEPENDENT PRACTICE ASSOCIATION A TYPE OF HMO THAT CONTRACTS WITH INDIVIDUAL PHYSICIANS TO PROVIDE SERVICES TO THE HMO'S ENROLLEES DOCTORS MAINTAIN THEIR OWN PRIVATE PRACTICES AND THUS CAN CONTRACT WITH OTHER HMOS OR SEE REGULAR FEEFORSERVICE PATIENTS AS WELL MANAGED CARE A GENERAL TERM FOR ORGANIZING NETWORKS OF HEALTHCARE PROVIDERS SUCH AS DOCTORS AND HOSPITALS TO ENHANCE THE COSTEFFECTIVENESS OF THEIR WORK AN HMO IS A COMMON FORM OF MANAGED CARE MANAGED COMPETITION A PROPOSAL FOR FINANCING AND DELIVERING HEALTH CARE THAT IS LIKELY TO BE THE CORNERSTONE OF MR CLINTON'S PLAN DEVELOPED BY A GROUP OF ACADEMICS AND HEALTHINDUSTRY EXPERTS WHO MEET PERIODICALLY IN JACKSON HOLE WYO IT ATTEMPTS TO MELD THE BEST FEATURES OF GOVERNMENT REGULATION AND MARKET COMPETITION THE BASIC IDEA IS TO BLEND EMPLOYERS INTO LARGE PURCHASING NETWORKS TO SHOP FOR THE HIGHESTQUALITY HEALTH COVERAGE AT THE LOWEST PRICE THE GOVERNMENT WOULD REQUIRE ANY INSURANCE COMPANY HMO OR OTHER HEALTH PLAN BIDDING FOR THEIR BUSINESS TO OFFER A STANDARD PACKAGE OF BENEFITS THE HOPE IS THAT THE NETWORKS' HUGE BUYING POWER WOULD GENERATE COMPETITION AMONG HEALTH PLANS LOWERING PRICES AND IMPROVING QUALITY ALL EMPLOYERS WOULD BE REQUIRED TO CONTRIBUTE THE COST OF HEALTH COVERAGE FOR THEIR EMPLOYEES AND THE GOVERNMENT WOULD SUBSIDIZE THE COST FOR THE LOWINCOME UNEMPLOYED MEDICAID A PROGRAM FINANCED JOINTLY BY THE FEDERAL GOVERNMENT AND THE STATES THAT PROVIDES HEALTH COVERAGE FOR MOSTLY LOWINCOME WOMEN AND CHILDREN AS WELL AS NURSINGHOME CARE FOR LOWINCOME ELDERLY FUNDING BENEFITS AND THE PORTION OF LOWINCOME PEOPLE COVERED VARY WIDELY FROM STATE TO STATE MEDICARE THE FEDERAL PROGRAM PROVIDING HEALTH INSURANCE FOR PEOPLE AGED 65 AND OLDER AND FOR DISABLED PEOPLE OF ALL AGES PREFERRED PROVIDER ORGANIZATION AN ARRANGEMENT UNDER WHICH AN INSURANCE COMPANY OR EMPLOYER NEGOTIATES DISCOUNTED FEES WITH NETWORKS OF HEALTHCARE PROVIDERS IN RETURN FOR GUARANTEEING A CERTAIN VOLUME OF PATIENTS ENROLLEES IN A PPO CAN ELECT TO RECEIVE TREATMENT OUTSIDE THE NETWORK BUT HAVE TO PAY HIGHER COPAYMENTS OR DEDUCTIBLES FOR IT PAYORPLAY A PROPOSAL FOR RESTRUCTURING THE HEALTHCARE SYSTEM SO ALL EMPLOYERS WOULD BE REQUIRED TO EITHER PROVIDE HEALTH INSURANCE FOR THEIR WORKERS OR PAY A TAX TO FINANCE A GOVERNMENT PLAN TO COVER EVERYONE ELSE SINGLE PAYER A SYSTEM WHEREBY ONE ENTITY PROBABLY THE GOVERNMENT PAYS FOR ALL HEALTH CARE CANADA HAS THE BESTKNOWN SINGLEPAYER SYSTEM IT IS FINANCED BY TAXES AND PEOPLE GO TO THE DOCTOR AND HOSPITAL OF THEIR CHOICE AND BILL THE GOVERNMENT 9303110099 930311 CORRECTIONS & AMPLIFICATIONS TRIDENT NGL INC SAID IT WILL PURCHASE WITH HELP FROM AN INVESTOR GROUP OCCIDENTAL PETROLEUM CORP'S 45 INTEREST IN TRIDENT AN ARTICLE TUESDAY INCORRECTLY STATED THAT THE INVESTOR GROUP WOULD BUY THE STAKE MAYFAIR SUPER MARKETS INC WAS GIVEN AN INITIAL RATING OF SINGLEB3 BY MOODY'S INVESTORS SERVICE INC FOR A 75 MILLION ISSUE OF SENIOR SUBORDINATED NOTES DUE 2003 IN TUESDAY'S NEW SECURITIES ISSUES COLUMN THE RATING WAS INCORRECTLY STATED AS SINGLEB2 9303110098 930311 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ECONOMIC THINK TANKS LINKED TO JAPAN'S BIGGEST BROKERAGE FIRMS WHICH IN DECEMBER FORECAST A SMALL REBOUND IN CORPORATE PRETAX PROFITS FOR THE YEAR STARTING APRIL 1 NOW MOSTLY SEE RED INK THEY CITED STUBBORNLY WEAK CONSUMER DEMAND AND THE YEN'S RISE IN FOREIGN EXCHANGE MARKETS THE RESEARCH INSTITUTES TIED TO THE NOMURA DAIWA AND YAMAICHI BROKERAGE FIRMS PREDICTED A FOURTH CONSECUTIVE YEAR OF PROFIT SHRINKAGE THIS TIME BETWEEN 11 TO 22 NIKKO SECURITIES CO'S RESEARCH ARM SAID RESTRUCTURINGS AND REDUCED FIXED COSTS WOULD ALLOW AN EARNINGS RISE BUT CUT ITS ESTIMATE TO 43 FROM 52 THE FORECASTS ARE MORE PESSIMISTIC THAN THAT IN THE JAPANESE CENTRAL BANK'S LATEST SURVEY OF BUSINESS SENTIMENT IN WHICH COMPANIES PREDICTED A SMALL REBOUND IN PRETAX EARNINGS ALL FOUR ECONOMIC THINK TANKS PREDICTED PROFITS WILL START TO RECOVER IN THE SECOND HALF OF THE YEAR ENDING MARCH 31 1994 CHINA'S FIRST PETROLEUM FUTURES EXCHANGE OPENED IN NANJING NEAR SHANGHAI THE NANJING PETROLEUM EXCHANGE AIMS TO ATTRACT FOREIGN TRADERS IN CHINA WHO TOOK A WAITANDSEE ATTITUDE CITING CONFUSION IN THE COUNTRY'S OIL MARKETS FOLLOWING LAST YEAR'S PARTIAL PRICE DEREGULATION AND SHARP RISES IN IMPORTS AND CONSUMPTION BY MIDYEAR CONTRACTS MAY BE DENOMINATED IN U S DOLLARS AS THE CHINESE YUAN ISN'T FULLY CONVERTIBLE NANPEX'S LAUNCH COMES AS CHINA TRIES TO INTERNATIONALIZE ITS OIL INDUSTRY BY REORGANIZING STATE OIL COMPANIES AND OPENING DEVELOPMENT OF LANDBASED OIL FIELDS TO FOREIGN CAPITAL THREATENED WITH THE COLLAPSE OF THE COALITION THAT HAS RULED SWITZERLAND FOR 34 YEARS PARLIAMENT ELECTED A WOMAN TO THE ALLMALE GOVERNMENT RUTH DREIFUSS A 53YEAROLD UNION LEADER WON AFTER CHRISTIANA BRUNNER WITHDREW HER DISPUTED CANDIDACY PARLIAMENT'S FACESAVING NAMING OF MS DREIFUSS TO THE SEVENMEMBER FEDERAL COUNCIL ENDED AN UNPRECEDENTED BATTLE BY WOMEN FOR POLITICAL POWER ONLY ONE OTHER WOMAN ELISABETH KOPP HAD BEEN ELECTED TO THE COUNCIL AND SHE WAS FORCED OUT IN 1989 IN A SECRECYVIOLATION CASE IN WHICH SHE WAS LATER CLEARED BREAKING THE GRIP OF SLOW GROWTH THAT BEGAN IN THE MID1980S NORWAY'S ECONOMY WILL STRENGTHEN AS OFFSHORE OIL AND NATURAL GAS OUTPUT EXPANDS RAPIDLY SAID THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT GROSS DOMESTIC PRODUCT EXCLUDING ENERGY PRODUCTION MAY GROW 2 THIS YEAR AND 3 NEXT YEAR AS EXPORTS EXPAND AMID REVIVED WORLD COMMODITY MARKETS PARTICULARLY FOR FORESTRY PRODUCTS OTHER ECONOMYBOOSTING FACTORS INCLUDE IMPROVED NORWEGIAN COMPETITIVENESS FROM CURRENCY DEPRECIATION LOWER PAYROLL TAXES STARTING NEXT YEAR AND HIGHER DOMESTIC DEMAND AS UNEMPLOYMENT AND INFLATION REMAIN STABLE TO LURE FOREIGN INVESTMENT NORTHERN CHINA'S HEBEI PROVINCE WILL CREATE SPECIAL ECONOMIC ZONES IN THE CITIES OF SHIJIAZHUANG TANGSHAN QINHUANGDAO AND CANGZHOU THE ZONES TO INCLUDE SOME TOURISM FACILITIES AS WELL AS FREETRADE COMMERCIAL LIGHTINDUSTRY AND INDUSTRIALPROCESSING AREAS WILL COVER A TOTAL OF 40 SQUARE MILES AND THEIR POPULATION IS EXPECTED TO REACH 350000 BY THE YEAR 2000 THE PROVINCE WILL OFFER PREFERENTIAL ECONOMIC INCENTIVES FOR ENTERPRISES IN THE ZONES AS WELL AS A SHAREHOLDING SYSTEM GREECE'S STOCK MARKET REGULATOR PLANS TO CHANGE THE COMMISSIONS THAT BROKERAGE FIRMS CHARGE THEIR CLIENTS TO INCREASE COMPETITION AND LOWER INVESTORS' FEES THE CAPITAL MARKETS COMMITTEE WHICH OVERSEES THE ATHENS BOURSE SAID RATES MAY VARY FROM 035 TO 1 OF A TRADE'S VALUE THE CURRENT SYSTEM FIXES COMMISSIONS AT 1 FOR TRADES OF UP TO 1 MILLION DRACHMAS 4444 075 FOR UP TO 3 MILLION DRACHMAS AND 05 FOR LARGER SUMS THE LIBERALIZATION COULD HELP BOOST TRADING VOLUME IN ATHENS WHERE STOCKS HAVE ALREADY RALLIED 22 THIS YEAR ON HOPES OF PRIVATIZATIONS AND LOWER INTEREST RATES IT IS OPPOSED BY SMALLER STOCKBROKERS WHO FEAR BEING SQUEEZED OUT BY BIGGER RIVALS WHO CAN OFFER LOWER FEES SEPARATELY IN A BID TO STOP MONEY LAUNDERING GREECE'S CENTRAL BANK ORDERED BANKS TO EXAMINE FOREIGN CURRENCY DEPOSITS EXCEEDING 17500 VERIFY DEPOSITORS' IDENTITIES AND REPORT SUSPICIOUS TRANSACTIONS AND TO COMBAT TAX EVASION BANKS MUST REPORT CASH DEPOSITS EXCEEDING 2 MILLION DRACHMAS JORDAN'S PARLIAMENT REJECTED A BILL TO SEGREGATE THE SEXES IN THE KINGDOM'S SEVERAL HUNDRED HIGH SCHOOLS AND TWO DOZEN COLLEGES A MOVE SOUGHT BY MUSLIM FUNDAMENTALISTS WHO SEEK TO INTRODUCE ISLAMIC LAW IN THE SECULAR SOCIETY FRANCE'S MAIN RIGHTWING COALITION OF TWO PARTIES MAY WIN BETWEEN 418 AND 439 OF THE 577 NATIONAL ASSEMBLY SEATS CUTTING THE GOVERNING SOCIALISTS' TURF TO NO MORE THAN 116 SEATS FROM 273 IN THIS MONTH'S PARLIAMENTARY ELECTION TWO FRENCH POLLS FOUND 9303110097 930311 MEDICINE DRUG PRICES GET DOSE OF MARKET PRESSURE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL EVEN AS THE WHITE HOUSE AND PHARMACEUTICAL INDUSTRY OFFICIALS WRANGLE OVER HOW TO CONTROL DRUG PRICES MARKET FORCES IN SOME CASES ARE AT WORK DOING JUST THAT FOR THE FIRST TIME IN YEARS COMPETITION AMONG DRUG MAKERS IS PROMPTING SOME COMPANIES TO TRY AN AGGRESSIVE MARKETING APPROACH LOWERING PRICES IT'S A RADICAL DEPARTURE FOR DRUG COMPANIES THAT TRADITIONALLY PITCH DRUGS DIRECTLY TO DOCTORS BASED LARGELY ON A MEDICINE'S MEDICAL BENEFITS MORE SKIRMISHES THAN FULLBLOWN PRICE WARS AT THIS POINT THE COMPETITION IS TAKING PLACE IN MARKETS WHERE SEVERAL COMPANIES MAKE EQUIVALENT OR METOO DRUGS BUT THOSE MARKETS INCLUDING SOME ANTIBIOTICS ULCER MEDICATIONS ANTIDEPRESSANTS AND BLOODPRESSURE THERAPIES ARE AMONG THE BIGGEST THESE DRUG PRICING BATTLES WERE OCCURRING BEFORE THE CLINTON ADMINISTRATION BEGAN ITS RECENT ATTACK ON PRICES WHICH HAVE INCREASED BY TWO TO THREE TIMES THE RATE OF INFLATION DURING THE 1980S AND ROSE 57 LAST YEAR SOME IN THE INDUSTRY ARGUE THAT NEW MARKET FORCES WILL CONTINUE TO PUSH DOWN PRICES AND THEY CONTEND THAT THE BEST THING THE CLINTON ADMINISTRATION CAN DO IS TO LET THAT HAPPEN BUT OTHERS POINT OUT THAT IN A FEW YEARS THE RUSH OF METOO DRUGS MAY SUBSIDE REDUCING COMPETITION FEARFUL THE CLINTON ADMINISTRATION WILL ENACT PRICE CONTROLS OR ATTEMPT TO ROLL BACK THE PRICES OF EXPENSIVE MEDICINES DRUGINDUSTRY REPRESENTATIVES MET WITH WHITE HOUSE HEALTHCARE OFFICIALS EARLIER THIS WEEK SUGGESTING THAT THE DRUG COMPANIES MIGHT GO ALONG WITH PROPOSED LAWS THAT WOULD MONITOR AND ENFORCE VOLUNTARY PRICE CONTROLS BUT WHILE THE VOLUNTARY PLEDGE TO HOLD PRICE INCREASES DOWN HAS RECEIVED MUCH PUBLIC ATTENTION BEHINDTHESCENES PRICING FRAYS ARE ON THE RISE BECAUSE OF COMPETITION AMONG RECENT PRICING SKIRMISHES CIBAGEIGY CORP HAS PRICED ITS LOTENSIN HEART DRUG ABOUT 50 CHEAPER THAN BRISTOLMYERS SQUIBB CO'S LIST PRICE OF CAPOTEN AND 28 LOWER THAN MERCK & CO'S VASOTEC MOREOVER CIBAGEIGY GUARANTEES THE PRICE TO PATIENTS FOR LIFE EVEN IF THEY NEED A HIGHER DOSAGE LATER ON RECENTLY SMITHKLINE BEECHAM INTRODUCED ITS ANTIDEPRESSANT PAXIL AT A LIST PRICE BELOW THOSE OF ELI LILLY & CO'S PROZAC AND PFIZER INC'S ZOLOFT AND BRISTOLMYERS PRICED ITS CHOLESTEROLREDUCING DRUG PRAVACHOL BELOW MERCK'S MEVACOR MERCK ITSELF PRICED ITS SECOND CHOLESTEROLREDUCING DRUG ZOCOR BELOW MEVACOR LAST WEEK AMERICAN CYANAMID CO'S LEDERLE LABORATORIES UNIT DECLARED WAR IN THE NICOTINEPATCH MARKET BY OFFERING TO REBATE A THIRD OF THE 4ADAY PRICE TO CUSTOMERS WHOSE PRESCRIPTIONS AREN'T COVERED BY MEDICAID OR INSURANCE WHEN THE DECISIONS TO DEVELOP METOO DRUGS WERE MADE ABOUT A DECADE AGO THEY WERE CONSIDERED TO CARRY LESS CORPORATE RISK THAN NEW TYPES OF THERAPIES THE FIRST PRODUCTS ON THE MARKET HAD ALREADY DONE THE HARD WORK OF PROVING THE DRUG'S EFFECTIVENESS AND ESTABLISHING THE MARKET METOO DRUGS CHEMICALLY DIFFER FROM THE PIONEER PRODUCT BUT OFFER SIMILAR MEDICAL BENEFITS IN THE PAST LATE ENTRANTS TO THE MARKET WERE USUALLY ABLE TO SET PRICES AT OR ABOVE THOSE OF COMPETITORS BUT THE EMERGENCE OF BIG INSTITUTIONAL BUYERS HAS REDUCED DRUG COMPANIES' PRICING FLEXIBILITY KNOWLEDGEABLE ABOUT DRUGS AND DETERMINED TO CUT COSTS THESE HOSPITAL HEALTH MAINTENANCE ORGANIZATION AND OTHER MANAGED CARE CUSTOMERS ARE PARTICULARLY RECEPTIVE TO THE CHEAPERISBETTER MARKETING MESSAGE BRISTOLMYERS USES SEVERAL MARKETING TOOLS TO SELL PRAVACHOL SAYS SENIOR VICE PRESIDENT RAYMOND C EGAN BUT AMONG MANAGED CARE BUYERS PRICE IS THE HOT BUTTON CIBAGEIGY IS HOPING ONE NAME ON THAT BUTTON IS LOTENSIN IN 1990 THE COMPANY BEGAN MAPPING OUT ITS MARKETING STRATEGY FOR THE HEART DRUG IN THE ACE INHIBITOR CLASS FOUR ACE INHIBITORS WERE ALREADY ON THE MARKET AND FOUR MORE WERE EXPECTED TO BE LAUNCHED ABOUT THE SAME TIME AS LOTENSIN IN 1991 CAPOTEN AND VASOTEC MADE UP TWOTHIRDS OF THE MARKET LAST YEAR ACCORDING TO LOTENSIN PRODUCT DIRECTOR HENRY BLOOM BUT GAINING EVEN A SMALL SLICE OF THE 18 BILLION MARKET CAN BE PROFITABLE HE SAYS CIBAGEIGY COULDN'T TOUT SIGNIFICANT MEDICAL ADVANTAGES BECAUSE THE ACE INHIBITORS ARE THERAPEUTICALLY SIMILAR SO EXECUTIVES AT CIBAGEIGY GAVE THE PRODUCTMANAGEMENT TEAM THE MANDATE TO COME UP WITH A BIG IDEA TO SELL THE HEART DRUG LOTENSIN PRICE CUTS AND GUARANTEES ALTHOUGH LOTENSIN HAS GAINED JUST A TINY 4 MARKET SHARE MR BLOOM SAYS THE SIGNS ARE GOOD THERE'S NO QUESTION PRICE HELPED US GET THE FOOT IN THE DOOR WITH HMOS HE ADDS LOTENSIN NOW IS ACCEPTED ON 65 OF ALL HMO FORMULARIES OR LISTS OF DRUGS COVERED BY THE HMO AS A GROUP LOWERPRICED ACE INHIBITORS HAVE BEGUN TO CHIP AWAY AT THE MARKET LEADERS SINCE 1990 VASOTEC'S MARKET SHARE HAS DECLINED TO 40 FROM 45 AND CAPOTEN'S SHARE HAS FALLEN TO 20 FROM 33 ACCORDING TO HEMANT SHAH AN INDEPENDENT ANALYST SMITHKLINE BEECHAM WHICH IS CONSIDERED AMONG THE MOST AGGRESSIVE MARKETERS TO MANAGED CARE BUYERS EMPHASIZES A COSTEFFECTIVENESS PITCH WHICH INCLUDES RELATED HOSPITAL PHYSICIAN AND OTHER COSTS TO COMPARE COMPETITORS' DRUGS BUT PRICE WAS THE BIGGEST SELLING POINT FOR THE ULCER TREATMENT TAGAMET AND THE COMPANY'S RECENTLY INTRODUCED ANTIDEPRESSANT PAXIL PRICED 13 BELOW PROZAC ON THE MARKET FOR ABOUT A MONTH PAXIL IS ON 80 OF ALL MANAGED HEALTHCARE FORMULARIES SAYS JEANPIERRE GARNIER PRESIDENT OF SMITHKLINE'S NORTH AMERICAN PHARMACEUTICAL DIVISION MANAGED CARE DRUGBUYERS LIKE KAISER PERMANENTE MEDICAL CARE PROGRAM BASED IN OAKLAND CALIF WELCOME THE ENTRY OF A LOWERPRICED METOO DRUG AS AN OPPORTUNITY TO LOWER DRUG COSTS WHEN BRISTOLMYERS INTRODUCED PRAVACHOL AT A LOWER PRICE THAN MERCK'S MEVACOR WHICH WAS ALREADY ON KAISER'S FORMULARY KAISER OPENED UP BIDDING FOR PLACEMENT ON ITS FORMULARY SAYS DALE KRAMER KAISER'S DIRECTOR OF MATERIEL SERVICES MR KRAMER SAYS MERCK WON WITH A SIGNIFICANTLY LOWER PRICE FOR THE DRUG GIVEN THE RECENT PRICING SKIRMISHES MR EGAN OF BRISTOLMYERS SAYS I THINK IT'S A SHAME THAT THE ADMINISTRATION ENTERS THE SCENE AT A POINT WHERE MARKET FORCES ARE TAKING OVER AND PUTTING DOWNWARD PRESSURE ON PRICE FOR KAISER'S MR KRAMER THE POTENTIAL IS HUGE FOR COMPETITION BUT THERE HAS TO BE A FREEMARKET ENVIRONMENT HE POINTS TO A 1990 LAW REQUIRING DRUG COMPANIES TO GIVE THE MEDICAID PROGRAM THE BEST PRICE OFFERED TO ANY CUSTOMER IT HAS CAUSED COMPANIES TO STOP DEEPLY DISCOUNTING THEIR DRUGS HE SAYS KAISER WAS ABLE TO NEGOTIATE DISCOUNTS AS HIGH AS 40 TO 60 IN THE PAST HE SAYS BUT NOW ONLY GETS THE STANDARD 15 THAT DRUG COMPANIES TYPICALLY OFFER MEDICAID KAISER'S TOTAL DRUG COSTS AS A RESULT HAVE INCREASED BY 5 TO 8 HE SAYS SOME BIG DRUG COMPANIES SUPPORT THE LAW BECAUSE IT RESTRAINS DISCOUNTING AND COMPETITION HE SAYS THE FLOW OF METOO DRUGS THROUGH DRUG COMPANIES' PIPELINES WILL CONTINUE FOR A FEW MORE YEARS PUTTING MORE PRESSURE ON PRICES BRISTOLMYERS'S MR EGAN SAYS BUT BECAUSE PRICE COMPETITION HAS REDUCED THE PROFITABILITY OF DEVELOPING FOLLOWON DRUGS COMPANIES ARE REVIEWING THEIR PORTFOLIOS AND SELECTING PIONEER BREAKTHROUGH DRUGS THAT CAN COMMAND PREMIUM PRICES ANALYSTS AND INDUSTRY EXECUTIVES SAY METOOS ARE OUT SAYS MR GARNIER 9303110096 930311 TIME WARNER TO SWAP 8 3/4 PREFERRED STOCK FOR NEW DEBENTURES NEW YORK TIME WARNER INC SAID IT WILL EXCHANGE ITS 63 MILLION SHARES OF SERIES C 8 3/4 PREFERRED STOCK FOR NEW 8 3/4 DEBENTURES DUE 2015 EFFECTIVE APRIL 1 THE EXCHANGE OF MORE THAN 3 BILLION IN SECURITIES STRENGTHEN'S THE PUBLISHING AND ENTERTAINMENT COMPANY'S BALANCE SHEET BY CONVERTING PREFERRED DIVIDEND COSTS TO INTEREST PAYMENTS THE PREFERRED DIVIDEND NO LONGER REDUCES PERSHARE EARNINGS AND THE INTEREST CAN BE TREATED AS AN EXPENSE HOLDERS OF THE NEW DEBENTURES WILL RECEIVE THE SAME DIVIDEND AND THE CONVERSION TERMS REMAIN THE SAME HOLDERS OF SHARES OF SERIES C PREFERRED STOCK WILL BE ENTITLED TO RECEIVE 50 PRINCIPAL AMOUNT OF DEBENTURES FOR EACH PREFERRED SHARE APPLICATION WILL BE MADE TO LIST THE NEW DEBENTURES FOR TRADING ON NASDAQ THE NATIONAL ASSOCIATION OF SECURITIES DEALERS' AUTOMATED QUOTATION SERVICE 9303110095 930311 TECHNOLOGY & HEALTH NOVELL MAY SHIP ITS NETWARE 40 BY END OF MONTH BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC SAID IT EXPECTS TO BEGIN SHIPPING NETWARE 40 THE NEWEST VERSION OF ITS WIDELY USED COMPUTERNETWORKING SOFTWARE BY THE END OF THIS MONTH NOVELL WHICH CONTROLS 60 TO 70 OF THE MARKET FOR SOFTWARE THAT ALLOWS DISSIMILAR COMPUTERS TO TALK TO ONE ANOTHER SAID IN PROVO UTAH THAT THE NEW SOFTWARE PACKAGE WILL ENABLE COMMERCIAL USERS TO SET UP MUCH BROADER NETWORKS THAN IN THE PAST FOR EXAMPLE THE COMPANY'S EXISTING NETWARE 311 SYSTEM CONFINES USERS TO LOCALIZED NETWORKS THE 40 SYSTEM WOULD PERMIT A LARGE MULTINATIONAL USER TO OPERATE A NETWORK WITH SITES THROUGHOUT THE WORLD EACH SIMULTANEOUSLY HAVING ACCESS TO THE SAME DATA AND IN SEPARATE LANGUAGES NOVELL IS ALSO BANKING ON ITS NEW SOFTWARE PACKAGE TO HELP FEND OFF MICROSOFT CORP'S WINDOWS NT SOFTWARE WHICH ALSO AIMS AT LARGE COMMERCIAL NETWORKS OF COMPUTER USERS REDMOND WASHBASED MICROSOFT EXPECTS TO BEGIN SELLING WINDOWS NT BY MIDSUMMER THE COMPANY SAID THE SYSTEM WILL INITIALLY BE AVAILABLE IN ENGLISH WITH FRENCH ITALIAN GERMAN AND SPANISH VERSIONS AVAILABLE SOON NOVELL SAID IT ALSO IS HOPING TO INTRODUCE A JAPANESE VERSION OF THE 40 PROGRAM LATER THIS YEAR SOME INDUSTRY ANALYSTS WHILE PRAISING THE CAPABILITIES OF NOVELL'S NEW SYSTEM SAID YESTERDAY THAT THE SYSTEM'S RELATIVELY HIGH PRICE AND NEW SOFTWARE ARCHITECTURE COULD SLOW INITIAL SALES GIBBS MOODY AN ANALYST WITH PRUDENTIAL SECURITIES SAID THAT WHILE NETWARE 40 SHOULD APPEAL TO NEW NETWORK SYSTEM USERS THOSE WHO ALREADY USE NOVELL'S 311 SYSTEM WOULD BASICALLY HAVE TO REBUILD THE SYSTEM WHILE UPGRADING IT TO 40 IT COULD SLOW THINGS DOWN MR MOODY SAID IT'S NOT A KILLER BUT SALES MAY NOT BE AS FAST AS THEY'D LIKE NOVELL'S PRICING FOR ITS NEW SYSTEM RANGING FROM 1395 FOR A FIVEUSER PACKAGE TO 47995 FOR A SYSTEM ACCOMMODATING 1000 USERS IS 25 HIGHER THAN THE COMPANY'S 311 SYSTEM ANALYSTS SAID YESTERDAY THAT THE NETWARE 40 PUTS THE COMPANY SOMEWHAT ON THE HIGH END OF THE PRICE SPECTRUM FOR LARGER NETWORKING SYSTEMS PRICE ANALYSTS SAID COULD DIVERT SOME LARGER CUSTOMERS TO COMPETITORS SUCH AS BANYAN SYSTEMS INC'S VINES 55 NETWORK SYSTEM WHICH WENT ON THE MARKET LAST MONTH A NOVELL SPOKESMAN SAID THAT ALTHOUGH THE PRICE OF THE ENTIRE SYSTEM MAY SEEM HIGH THE COMPANY DOESN'T EXPECT THE PRICE TO DISCOURAGE LARGER POTENTIAL CUSTOMERS NOVELL'S SHARES WERE TRADING AT 3125 UP 50 CENTS IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9303110094 930311 ABREAST OF THE MARKET INDUSTRIALS RISE 622 TO A RECORD ON POSITIVE DEFICITCUTTING NEWS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SHRUGGED OFF RISING INTEREST RATES AND CLIMBED HIGHER ON GROWING SIGNS THAT THE CLINTON ADMINISTRATION IS COMMITTED TO REAL DEFICIT REDUCTION THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 622 POINTS TO A RECORD 347834 IN MODERATELY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX ADVANCED 193 POINTS TO 45633 ALSO A RECORD AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 115 TO 25136 MEANWHILE THE AMERICAN STOCK EXCHANGE'S MARKET VALUE INDEX BARRELED TO ITS SECOND CONSECUTIVE RECORD RISING 286 TO 42188 VOLUME ON THE BIG BOARD TOTALED 255190000 SHARES DOWN FROM TUESDAY'S ROBUST 290120000 SHARES ADVANCING ISSUES OUTNUMBERED DECLINERS 1031 TO 852 BEATENDOWN DRUG AND HEALTHCARE STOCKS RALLIED AS DID FINANCIAL ISSUES THE DRUG GROUP HAS A VERY LARGE FOLLOWING AND WHEN THAT GROUP TURNS IT TAKES THE MARKET HIGHER SAID ROBERT KAHAN SENIOR MANAGING DIRECTOR IN CHARGE OF TRADING AT MONTGOMERY SECURITIES IN SAN FRANCISCO STOCKS TRADED LOWER MOST OF THE DAY SUCCUMBING TO HIGHER INTEREST RATES BUT PRICES TURNED LATE IN THE AFTERNOON ON A REPORT THAT THE WHITE HOUSE MAY BE WILLING TO CONSIDER DEFERRING SPENDING FOR PARTS OF ITS STIMULUS PLAN UNTIL AFTER CONGRESS TAKES A BINDING VOTE ON EXTRA SPENDING CUTS THESE CUTS COULD BE IN THE ORDER OF 90 BILLION UP FROM THE 55 BILLION IN REDUCTIONS TALKED ABOUT EARLIER IN THE WEEK ANALYSTS SAID THE POSITIVE DEFICITREDUCTION REPORTS PRODUCED A SHIFT IN MARKET SENTIMENT DRUG STOCKS WHICH HAD BEEN STRONG ALL DAY SOARED PFIZER JUMPED 3 1/2 TO 63 1/4 MERCK GAINED 1 7/8 TO 40 BRISTOLMYERS SQUIBB THE SECOND MOST ACTIVELY TRADED STOCK ON THE BIG BOARD SURGED 1 3/8 TO 58 1/2 AND SCHERINGPLOUGH LEAPT 2 TO 61 1/2 THE GAINS WERE SPURRED BY A REPORT THAT DRUG INDUSTRY EXECUTIVES UNDER FIRE FROM THE CLINTON ADMINISTRATION HAVE STRUCK A DEAL WITH THE WHITE HOUSE OVER PRICING PRACTICES ROBERT HODGSON AN ANALYST AT COWEN & CO SAID THE MOVE WAS INTERPRETED BY THE MARKET AS POSITIVE BECAUSE IT SHOWS SOME WILLINGNESS ON THE PART OF THE CLINTON TEAM TO WORK WITH THE DRUG INDUSTRY IN CONTROLLING PRICES HEALTHCARE AND DRUG STOCKS GAINED AFTER A REPORT THAT A FEDERAL JUDGE YESTERDAY PUT SOME BRAKES ON PRESIDENT CLINTON'S HEALTHCARE TASK FORCE AND THE GROUPS ADVISING IT THE JUDGE SAID THE TASK FORCE MUST MEET IN PUBLIC IF IT IS GATHERING FACTS OR INFORMATION THE JUDGE SAID HOWEVER THAT THE GROUP CAN CONTINUE MEETING IN PRIVATE FOR THE PURPOSE OF FORMULATING ADVICE AND RECOMMENDATIONS TO THE PRESIDENT TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST SAID THE JUDGE'S RULING WAS ENCOURAGING BECAUSE IT SUGGESTED THAT THE CLINTON ADMINISTRATION WOULDN'T BE ABLE TO DEVELOP A HEALTHCARE REFORM PLAN BY CUTTING DEALS BEHIND THE PUBLIC'S BACK BANK STOCKS MEANWHILE ADVANCED AFTER PRESIDENT CLINTON UNVEILED HIS PLANS TO EASE LENDING RULES JP MORGAN RALLIED 2 3/8 TO 69 5/8 BANKAMERICA ROSE 1 3/8 TO 54 3/8 AND CHEMICAL BANKING CLIMBED 1 1/8 TO 44 WALT DISNEY EASED 1/2 TO 45 A 29 MILLIONSHARE BLOCK OF DISNEY COMMON STOCK WAS SOLD YESTERDAY THROUGH GOLDMAN SACHS THE BLOCK REPRESENTED SHARES HELD BY THE ESTATE OF SHARON DISNEY LUND THE DAUGHTER OF WALT DISNEY WHO DIED FEB 16 DISNEY SAID IT WAS TOLD THAT THE SALE OF THESE SHARES WHEN COMBINED WITH SHARES SOLD EARLIER THIS WEEK IS EXPECTED TO SATISFY ESTATE TAX REQUIREMENTS INTERNATIONAL BUSINESS MACHINES SLIPPED 3/4 TO 55 7/8 THE COMPUTER MAKER SAID TUESDAY THAT IT WILL CUT PRICES AS MUCH AS 20 ON SELECTED MODELS ALZA ADVANCED 1 1/2 TO 35 1/8 EARLIER THIS WEEK THE COMPANY HASTILY SCHEDULED A MEETING WITH ANALYSTS FOR THIS MORNING DAVID M STEINBERG AN ANALYST AT VOLPE WELTY & CO SAID ALZA HAS INDICATED THE MEETING IS NOT NEGATIVE HE THINKS THE COMPANY IS LIKELY TO SAY IT PLANS TO ACQUIRE ANOTHER FIRM GENESIS HEALTH ADDED 1 5/8 TO 14 3/4 MERRILL LYNCH RAISED ITS INTERMEDIATETERM INVESTMENT RATING ON THE GERIATRIC HEALTHCARE SERVICES COMPANY TO BUY FROM ABOVE AVERAGE ENQUIRER/STAR GROUP ROSE 1 3/8 TO 16 1/2 FIRST BOSTON UPGRADED THE PUBLISHING COMPANY'S STOCK TO A BUY FROM HOLD AAR FELL 7/8 TO 12 1/4 THE AVIATION PARTS COMPANY SAID IT EXPECTS A LOSS OF 57 MILLION OR 36 CENTS A SHARE FOR THE THIRD QUARTER ON THE AMERICAN STOCK EXCHANGE THERE WERE 305 GAINERS AND 271 DECLINERS 9303110093 930311 ECONOMY WEAKEST US ECONOMIC REGIONS SHOW SIGNS OF GROWTH FED DISTRICTS REPORT BY LUCINDA HARPER AND IAN OLGEIRSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON NEW ENGLAND AND THE FAR WEST TWO OF THE WEAKEST ECONOMIC REGIONS OF THE COUNTRY ARE SHOWING SOME SIGNS OF GROWTH ACCORDING TO A SURVEY OF THE 12 FEDERAL RESERVE DISTRICT BANKS ALTHOUGH NEW ENGLAND AND CALIFORNIA REMAINED RELATIVELY WEAK SIGNS OF GROWTH WERE APPARENT IN SEVERAL SECTORS OF EACH OF THOSE REGIONS SAID THE REPORT WHICH COVERED THE LAST TWO WEEKS OF JANUARY AND ALL OF FEBRUARY IN NEW ENGLAND FOR INSTANCE DEMAND FOR CONSUMER GOODS HAS GOTTEN STRONGER BUT THE MANUFACTURING SECTOR SHOWS CONTINUED SLUGGISHNESS IN THE WEST THE REPORT SAID EASTERN WASHINGTON UTAH AND IDAHO HAVE GAINED SOME STEAM CALIFORNIA IS STILL SUFFERING THOUGH IT IS STILL TOO SOON TO SAY WHETHER THE STATE HAS TURNED THE CORNER SAID ROBERT PARRY HEAD OF THE FEDERAL RESERVE BANK OF SAN FRANCISCO IN TESTIMONY BEFORE THE SENATE BANKING COMMITTEE THE WESTERN REGION IS STILL DOMINATED BY THE LONG AND DEEP RECESSION GRIPPING CALIFORNIA MR PARRY AND HIS COLLEAGUES FROM THE 11 OTHER DISTRICT BANKS PAINTED A PICTURE OF A NATIONAL ECONOMY THAT IS CONTINUING TO IMPROVE THEY SAID THE CREDIT CRUNCH HAS EASED SOMEWHAT IN MOST DISTRICTS BUT IS STILL A PROBLEM WE ARE MOVING FROM A CREDITCRUNCH MENTALITY TO CREDIT CAUTION SAID FEDERAL RESERVE BANK OF PHILADELPHIA PRESIDENT EDWARD BOEHNE EACH ALSO DISCUSSED MONETARY POLICY THEY WERE FAIRLY UNIFORM IN THEIR VIEWS THAT GROWTH SHOULD BE ACHIEVED WITHOUT AN INCREASE IN INFLATION IT IS IMPORTANT TO HAVE MAXIMUM SUSTAINABLE GROWTH IN REAL OUTPUT BY ENSURING PRICE STABILITY SAID MINNEAPOLIS FED BANK PRESIDENT GARY STERN FEDERAL RESERVE BANK PRESIDENTS THOMAS HOENIG OF KANSAS CITY AND GERALD CORRIGAN OF NEW YORK SAID THEY EXPECT THE ECONOMY TO GROW 3 THIS YEAR MR HOENIG ESTIMATED INFLATION WOULD BE BELOW 3 FOR THE YEAR HERE IS A SUMMARY OF THE 12 FEDERAL RESERVE DISTRICT BANKS BOSTON RETAILERS REPORTED AN INCREASE IN SALES IN THE WEEKS FOLLOWING CHRISTMAS BUT IT WASN'T ENOUGH TO PROMPT A RISE IN EMPLOYMENT OR WAGES THE PERFORMANCE OF THE MANUFACTURING SECTOR WAS MIXED DEMAND WAS STRONG FOR AUTOMOTIVE AND PERSONALCOMPUTER PARTS BUT MANUFACTURERS GENERALLY SAID THEY PLAN ONLY SMALL ADJUSTMENTS IN STAFFING LEVELS FOR THE COMING YEAR LAST YEAR THE MAJORITY CUT EMPLOYMENT LEVELS ANYWHERE FROM 3 TO 15 THE REAL ESTATE MARKET REMAINED SLOW BUT PRICES WERE STABLE NEW YORK UNEMPLOYMENT CAST A SHADOW OVER ECONOMIC GROWTH IN THE DISTRICT REMAINING AT 85 IN JANUARY EVEN AS NEW JERSEY'S RATE DROPPED TO 74 FROM 80 IN DECEMBER EXPECTATIONS OF MASSIVE JOB LOSSES AT IBM AND KODAK WERE BALANCED BY PLANS FOR TWO LARGE CONSTRUCTION PROJECTS RETAIL SALES WERE BETTER THAN EXPECTED IN JANUARY CREATING A CAUTIOUS OPTIMISM FOR SPRING A SURVEY OF BANKS SHOWED A SHARP INCREASE IN WILLINGNESS TO MAKE NONRESIDENTIAL COMMERCIAL AND INDUSTRIAL LOANS BUT CONSUMERLOAN DEMAND WEAKENED DURING THE PAST TWO MONTHS PHILADELPHIA MANUFACTURERS PREDICT NEW HIRING TO KEEP UP WITH STEADY GAINS IN DEMAND IN ALL INDUSTRIES EXCEPT TEXTILES AND TRANSPORTATION EQUIPMENT WHICH SLIPPED IN FEBRUARY HOWEVER EMPLOYMENT AND WORKING HOURS REMAIN STEADY RETAIL SALES IMPROVED DESPITE HARSH WINTER CONDITIONS TOTAL LOAN VOLUME INCREASED MODERATELY AND CONSTRUCTION IMPROVED SLIGHTLY WITH DEMAND FOR INDUSTRIAL SPACE PICKING UP COMMERCIAL AND RESIDENTIAL CONSTRUCTION REMAINED FLAT CLEVELAND A 5 TO 10 JUMP IN CONSUMER SPENDING COMING DESPITE RELATIVELY SMALL PRICE DISCOUNTS SURPRISED RETAILERS BUT LARGE INVENTORIES HAVE KEPT MERCHANDISE ORDERS MODEST FOR THE SPRING CAPITALGOODS PRODUCERS ANTICIPATE BROADENING STRENGTH IN ORDERS AND PRODUCTION ALTHOUGH WEAKNESS IS ANTICIPATED IN THE AEROSPACE INDUSTRY CAR DEALERS SAID THEIR SALES HAVE IMPROVED WITH DOMESTIC MODELS OUTSELLING FOREIGN COMPETITORS FEW NEW JOBS WERE CREATED BUT EMPLOYERS ACROSS THE BOARD SAID THEY WERE MORE LIKELY TO HIRE IN THE FUTURE RICHMOND ECONOMIC ACTIVITY STRENGTHENED IN THE PAST SIX TO EIGHT WEEKS BUT EMPLOYMENT IN THE MANUFACTURING AND RETAIL SECTORS REMAINED FLAT RETAILERS REPORTED INCREASED TRAFFIC INCLUDING SALES OF BIGTICKET ITEMS RESIDENTIAL CONSTRUCTION REMAINED STRONG DURING THE LAST SIX WEEKS BUT HOUSING STARTS DECLINED REPORTEDLY BECAUSE OF WET JANUARY WEATHER COAL PRODUCTION FELL 10 BECAUSE OF A MINERS STRIKE BUT DEMAND FOR LUMBER REMAINED STRONG IN THE CAROLINAS AND WEST VIRGINIA ATLANTA THE REGION'S ECONOMIC EXPANSION EASED MODESTLY IN FEBRUARY WITH RETAIL SALES HIGHER THAN A YEAR AGO BUT LOWER THAN THEY WERE IN DECEMBER DESPITE THE DROP RETAILERS GENERALLY ARE UPBEAT ABOUT SALES PROSPECTS FOR THE COMING YEAR INDUSTRY OFFICIALS REPORTED INCREASES IN DEMAND FOR BUILDING MATERIALS AND FURNISHINGS A FEW COMPANIES IN THOSE SECTORS INDICATE EMPLOYMENT INCREASES HOWEVER THE AEROSPACE AND DEFENSE INDUSTRIES ANNOUNCED LAYOFFS CHICAGO JANUARY AND FEBRUARY BROUGHT ECONOMIC EXPANSION TO THE DISTRICT THE JOB MARKET STRENGTHENED A SURVEY OF HIRING PLANS FOR MIDWEST BUSINESSES REVEALED A GROWING MOMENTUM FOR NEW HIRING THE GROWTH COMES ON THE HEELS OF STEADY SALES INCREASES AND A MODERATE EXPANSION IN PRODUCTION IN EARLY 1993 BUT A LARGE STEEL PRODUCER REPORTED A SLOW RECOVERY OF NEW ORDERS ESPECIALLY FROM THE AUTO APPLIANCE AND INDUSTRIALMACHINERY INDUSTRIES ST LOUIS PRODUCTION AND SALES INCREASES WERE REPORTED SINCE THE BEGINNING OF THE YEAR SALES INCREASES RANGE FROM 5 FOR PLUMBING HEATING AND COOLING EQUIPMENT TO 13 FOR AN AEROSPACE BUSINESS THAT HAS CONVERTED SOME OF ITS MANUFACTURING TO CONSUMER GOODS ORDERS EXCEEDED THE EXPECTATIONS OF MANY FIRMS HOWEVER LARGE DEFENSE FIRMS CONTINUE TO CUT THEIR WORK FORCES IN THE FACE OF FALLING DEMAND CONSTRUCTION AND SALES OF SINGLEFAMILY HOMES ARE UP FROM LAST YEAR DESPITE RISING PRICES MINNEAPOLIS THE JOB MARKET REMAINS STATIC DESPITE MODEST INCREASES IN CONSUMER SPENDING ESPECIALLY RETAIL SALES AND TOURISM CONSTRUCTION CONTINUED ITS STRONG PACE OF THE FINAL MONTHS OF 1992 HOWEVER THE DISTRICT'S GROWTH HAS BEEN HAMPERED BY POOR ECONOMIC CONDITIONS IN PAPER MILLS AND MINING VENTURES AGRICULTURE ALSO SUFFERED A SLIGHT DECLINE BUT GOOD WEATHER CONDITIONS GIVE REASON FOR OPTIMISM IN 1993 KANSAS CITY INCREASED CONSTRUCTION IMPROVED FARM INCOMES AND HIGHER RETAIL SALES COMBINED TO BOLSTER THE DISTRICT'S ECONOMIC OUTLOOK RESIDENTIAL CONSTRUCTION AND HOME SALES CLIMBED OVER THE PAST TWO MONTHS DESPITE SEASONAL SLOWDOWNS CONSTRUCTION REMAINED ROBUST AND DEMAND INCREASED FOR CONSUMER AND HOMEMORTGAGE LOANS THE WINTER WHEAT CROP BENEFITED FROM ALMOST IDEAL GROWING CONDITIONS BUT THE HARSH WEATHER THAT HELPED IT HAS HURT LIVESTOCK DALLAS MANY MANUFACTURERS REPORT EMPLOYMENT GAINS AS A RESULT OF NEW ORDERS BUT MAKERS OF OIL DRILLING AND REFINING EQUIPMENT SUFFERED AS DRILLING TAX CREDITS EXPIRED AT THE END OF 1992 RESIDENTIAL BUILDING CONTINUES ITS DOMINANCE IN THE CONSTRUCTION SECTOR RISING LUMBER PRICES ARE EXPECTED TO INCREASE ALREADY RISING HOME PRICES BUT BUILDERS REMAIN OPTIMISTIC FOR 1993 FINANCIAL INSTITUTIONS REPORTED GAINS FROM HOME FINANCING AND REFINANCING BUT BUSINESS LENDING REMAINS SLUGGISH SAN FRANCISCO ECONOMIC TROUBLES IN CALIFORNIA AND WASHINGTON TRIPPED UP AN OTHERWISE IMPROVING REGION ESPECIALLY HARD HIT ARE THE AEROSPACE AND DEFENSE INDUSTRIES WITH BOEING CO ANNOUNCING HUGE LAYOFFS IN WASHINGTON STATE OTHERWISE THE REGION HAS EXPERIENCED ECONOMIC GROWTH BENEFITING FROM GOOD RETAIL SALES AND CONSUMER SERVICE INCREASES AGRICULTURE IN THE REGION GENERALLY HAS RECEIVED A BOOST FROM RECENT RAINS NONRESIDENTIAL REAL ESTATE CONTINUES TO SLUMP BUT RESIDENTIAL SALES ARE SHOWING MORE STRENGTH 9303110092 930311 GM SEEKING 2475 BILLION CREDIT LINE 17 BANKS ARE LIKELY TO COMMIT FUNDS BY STEVEN LIPIN AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SEVENTEEN BANKS ARE EXPECTED TO COMMIT 1 BILLION EACH TO GENERAL MOTORS CORP'S NEW BANK CREDIT LINES A SIGN THAT THE AUTO MAKER IS ON ITS WAY TO ASSEMBLING THE LARGEST BANK CREDIT PACKAGE EVER GENERAL MOTORS HOPES TO RAISE 2075 BILLION IN SYNDICATED BANK CREDIT AND AT LEAST AN ADDITIONAL 4 BILLION IN LINES WITH INDIVIDUAL BANKS FOR A TOTAL OF AT LEAST 2475 BILLION BANKERS IN THE DEAL SAY THE NEW LINES WILL REFINANCE MATURING BANK LINES AND POSSIBLY OTHER DEBT COMING DUE AT ITS GENERAL MOTORS ACCEPTANCE CORP UNIT THE PACKAGE ALSO INCLUDES A 3 BILLION REVOLVING CREDIT FOR THE PARENT THE CREDIT PACKAGE WILL INCREASE THE COMPANY'S OVERALL BANK LINES ONE LENDER IN THE DEAL SAID BUT IT IS UNCLEAR BY HOW MUCH GM AND ITS FINANCE UNIT HAVE MORE THAN 20 BILLION IN DEBT COMING DUE THIS YEAR REPLACING THE DEBT WITH NEW FINANCING IS AN IMPORTANT PART OF THE COMPANY'S FINANCIAL UNDERPINNINGS FOR INSTANCE 7 BILLION OF CREDIT LINES THAT GUARANTEE ITS COMMERCIAL PAPER PROGRAM COMES DUE IN MAY GMAC NEEDS THE CREDIT LINES WHICH IT WOULD BE ABLE TO USE AS NEEDED TO HAVE A FINANCIAL CUSHION IF IT CANNOT PLACE ENOUGH NEW SECURITIES THE POSSIBILITY THAT GM MAY HAVE TO RELY ON THE CREDIT LINES WAS RAISED IN EARLY FEBRUARY WHEN STANDARD & POOR'S CORP DOWNGRADED GM'S DEBT AND LOWERED GMAC'S TOPTIER COMMERCIAL PAPER RATING MOODY'S INVESTORS SERVICE MADE A SIMILAR MOVE IN NOVEMBER BUT GMAC SAYS IT IS NOT WITHDRAWING FROM THE COMMERCIAL PAPER MARKET AND HAS NO INTENTION OF USING ITS LINES FOR DAYTODAY FINANCING ALTHOUGH IT HAS CLEARLY REDUCED ITS RELIANCE ON THE COMMERCIAL PAPER MARKET FOR FUNDING THE COMPANY DECLINED FURTHER COMMENT WHILE NO MONEY HAS BEEN COMMITTED YET GM MET WITH 17 MAJOR INTERNATIONAL BANKS LAST WEEK AND ASKED EACH TO COMMIT 1 BILLION TO GM OR ITS SUBSIDIARIES BY TOMORROW THOSE WITH EXISTING LOANS WILL ADD TO THEIR COMMITMENTS TO REACH AT LEAST 1 BILLION TO BECOME ONE OF THE 17 LEAD BANKS LENDERS INFORMALLY AGREED TO COMMIT 1 BILLION ASSUMING TERMS AND CONDITIONS WERE SATISFACTORY BANKERS IN THE DEAL SAY THE BANKS WILL THEN RAISE THE REMAINING FUNDS FROM BANKS AROUND THE WORLD IT IS UNUSUAL EVEN FOR GM TO SEEK SUCH LARGE COMMITMENTS FROM SO MANY BANKS AT ONCE BUT THE BIG BANKS ARE EXPECTED TO RESELL MOST OF THEIR LOAN COMMITMENTS TO SMALLER INSTITUTIONS WITH THE HELP OF CHEMICAL BANKING CORP GMAC THOROUGHLY CANVASSED THE WORLDWIDE BANKING COMMUNITY FOR THE PAST THREE MONTHS TO FIND TERMS ACCEPTABLE TO LENDERS THAT SHOULD MAKE THE FUNDRAISING RELATIVELY EASY BANKERS SAY THE BANK GROUP WHICH IS BEING LED BY CHEMICAL INCLUDES MANY OF THE LARGEST BANKS IN THE US INCLUDING JP MORGAN & CO CITICORP AND BANKERS TRUST NEW YORK CORP AS WELL AS TOP FOREIGN BANKS 9303110091 930311 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BLANCH HOLDINGS AN INITIAL OFFERING OF 434 MILLION COMMON SHARES VIA SALOMON BROTHERS INC AND GOLDMAN SACHS & CO ROYAL CARIBBEAN CRUISES LTD AN INITIAL OFFERING OF AN UNDETERMINED AMOUNT OF COMMON SHARES VIA LEHMAN BROTHERS LAZARD FRERES & CO AND MERRILL LYNCH & CO ZURICH REINSURANCE CENTRE HOLDINGS INC THE OPERATING SUBSIDIARY OF NEWLY FORMED ZRC HOLDINGS AN INITIAL OFFERING OF 9450000 COMMON SHARES VIA FIRST BOSTON CORP DONALDSON LUFKIN & JENRETTE SECURITIES CORP JP MORGAN SECURITIES INC AND SMITH BARNEY HARRIS UPHAM & CO 9303110090 930311 AT&T GETS ORDER FROM CHINA NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT SIGNED A 30 MILLION CONTRACT TO PROVIDE CELLULARNETWORK EQUIPMENT TO CHINA'S YUNNAN PROVINCE THE AGREEMENT IS ONE OF MANY BUSINESS TRANSACTIONS THE TELECOMMUNICATIONS COMPANY HOPES TO CONCLUDE OVER THE NEXT DECADE WITH CHINA UNDER A BROAD PACT SIGNED BETWEEN THE TWO LAST MONTH THE PACT COULD MEAN BILLIONS OF DOLLARS IN REVENUE OVER THE PERIOD FOR AT&T AS CHINA SEEKS TO MODERNIZE ITS COMMUNICATIONS SYSTEMS AT&T SAID IT WILL SUPPLY MOBILE SWITCHING EQUIPMENT BASE STATIONS AND AT&T CELLULAR PHONES TO PROVIDE PROVINCEWIDE MOBILE TELEPHONE SERVICES INSTALLATION IS EXPECTED TO BEGIN IN MID1993 9303110089 930311 MARKETING ANHEUSER LEADS WAY IN LISTING ALCOHOL LEVELS BY RICHARD GIBSON AND MARJ CHARLIER STAFF REPORTERS OF THE WALL STREET JOURNAL ANHEUSERBUSCH COS WHICH LONG OPPOSED THE IDEA SOON WILL DISCLOSE HOW MUCH ALCOHOL IS IN ITS BIGGESTSELLING BEERS OTHER BREWERS ARE EXPECTED TO FOLLOW ENABLING SHOPPERS TO COMPARE ALCOHOLIC CONTENTS OF BEERS MUCH AS THEY MIGHT THE CALORIES IN PRETZEL BRANDS THAT'S NOT BEEN THE CASE SINCE PROHIBITION LAWMAKERS FEARING THAT BREWERIES MIGHT WOO CUSTOMERS WITH EVERSTRONGER DRINKS BANNED MANUFACTURERS FROM DISCLOSING HOW MUCH ALCOHOL WAS IN THEIR PRODUCT THE EXCEPTIONS HAVE BEEN NONALCOHOLIC OR NEARBEERS WITH LESS THAN 05 ALCOHOL AND IN SOME STATES 32 BEER OR BEER WITH 32 ALCOHOL BY WEIGHT MOST BEERS HAVE BETWEEN 32 AND 45 ALCOHOL BY WEIGHT OR 4 TO 5 ALCOHOL BY VOLUME ON APRIL 1 ANHEUSER WILL BEGIN POSTING THE ALCOHOL CONTENT OF ITS BUDWEISER LINE ON CANS AND LABELS IN MOST OF THE COUNTRY THAT THE WORLD'S LARGEST BREWER IS INITIATING THE MOVE IS IRONIC SINCE THE ST LOUISBASED COMPANY FOUGHT SUCH A MOVE FOR YEARS MOST RECENTLY IN COURT WHEN RIVAL ADOLPH COORS CO CHALLENGED THE LAW AS UNCONSTITUTIONAL NOW DESPITE ITS VICTORY COORS IS OPTING NOT TO DISCLOSE ITS BEERS' ALCOHOLIC CONTENT UNTIL IT'S CERTAIN THAT SUCH A MOVE WILL BE BOTH PERMANENT AND NATIONWIDE MILLER BREWING CO THE NATION'S SECONDLARGEST BREWER AND A UNIT OF PHILIP MORRIS COS IS TAKING A SIMILAR STANCE THEIR UNCERTAINTY REFLECTS THE JUSTICE DEPARTMENT'S DECISION TO APPEAL THE COORS DECISION WHILE ANOTHER FEDERAL AGENCY THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS HAS APPROVED NEW LABELS FOR ANHEUSER AND A CHICAGOBASED IMPORTER OF EUROPEAN BEERS ATF WHICH IS REVISING REGULATIONS FOR PUBLIC COMMENT SAYS SEVERAL OTHER PARTIES HAVE APPLICATIONS PENDING SOME STATES HAVE SEPARATE STATUTES PREVENTING CONTENT DISCLOSURE BUT ANHEUSER SAYS IT INTENDS TO START LOBBYING THEM TO FALL IN LINE WITH THE NEW FEDERAL RULES AMONG THOSE BARRING ALCOHOL CONTENT ON LABELS NEW YORK TEXAS PENNSYLVANIA AND ILLINOIS THE NEW REGULATIONS PRECLUDE BREWERS FROM USING ALCOHOL CONTENT IN ADVERTISING THE ALCOHOL CONTENT ISSUE FLARED IN 1991 WHEN G HEILEMAN BREWING CO SOUGHT TO INTRODUCE A MALT LIQUOR CALLED POWERMASTER THAT WOULD HAVE CONTAINED 73 ALCOHOL BY VOLUME MOST MALT LIQUORS CONTAIN ABOUT 62 ALCOHOL THE ATF EVENTUALLY REJECTED THE PRODUCT MEANWHILE COORS SEEKING TO COMBAT A WIMPY BEER WHISPERING CAMPAIGN BY COMPETITORS DECIDED TO GET THE LAW CHANGED SO THAT CONSUMERS COULD MAKE THEIR OWN INFORMED DECISIONS WE FELT THAT ALCOHOL CONTENT LABELING WOULD SET THE RECORD STRAIGHT AND PROVIDE A LEVEL PLAYING FIELD FOR CONSUMER CHOICE COORS EXECUTIVE VICE PRESIDENT ROBERT RECHHOLTZ TOLD THE COURT COORS ARGUED THAT THE FEAR OF SOCALLED STRENGTH WARS BETWEEN BREWERS IS UNWARRANTED TODAY'S CONSUMERS ARE LOOKING FOR LESS ALCOHOL NOT MORE THE BREWER CONTENDED THUS DISCLOSING CONTENT WOULD ALLOW THEM TO MAKE BETTERINFORMED BUYING DECISIONS ANHEUSER SAYS IT IS LABELING ITS BEERS ACCORDING TO A LONGSTANDING POLICY OF PROVIDING INFORMATION TO CONSUMERS THAT CONTRASTS FROM ITS POSITION IN THE COORS CASE IN WHICH A GOVERNMENT ATTORNEY NOTED A LETTER FROM THE BREWER CONTENDING THAT THE POTENTIAL ADVERSE PUBLIC HEALTH CONSEQUENCES OUTWEIGH THE POTENTIAL BENEFICIAL USE THAT MIGHT BE MADE OF THE INFORMATION ASKED ABOUT THE TURNABOUT THOMAS R SHARBAUGH VICE PRESIDENT OF BRAND MANAGEMENT SAID THAT IN RECENT YEARS THE PUBLIC HAS SHOWN AN INCREASING INTEREST IN THE INGREDIENTS AND NUTRITIONAL VALUE OF THE PRODUCTS THEY CONSUME AND SINCE THE GOVERNMENT HAS APPROVED DISCLOSING ALCOHOL CONTENT THE COMPANY WILL PROVIDE CONSUMERS WITH THE INFORMATION ANHEUSER SAYS NEW LABELS ON BUDWEISER BUD LIGHT AND BUD DRY WILL BEGIN APPEARING IN MANY STATES NEXT MONTH AND THAT EVENTUALLY OTHER BEERS IT MAKES WILL DISCLOSE ALCOHOL CONTENT WHERE ALLOWED THE LABELS WILL SHOW THAT BUDWEISER AND BUD DRY CONTAIN 5 ALCOHOL BY VOLUME WHILE BUD LIGHT CONTAINS 42 MICROBREWERS SMALL COMPANIES WHOSE BREWS OFTEN CONTAIN MORE ALCOHOL THAN NATIONAL BRANDS SUPPORT DISCLOSING ALCOHOL CONTENT SAYS JEFF MENDEL DIRECTOR OF THE INSTITUTE OF BREWING STUDIES BOULDER COLO BUT HE ADDS THAT CONCERNS ABOUT STRENGTH WARS ARE UNFOUNDED NO BREWERY CAN AFFORD TO USE THAT AS A MARKETING TOOL GIVEN THE VERY NEGATIVE RAMIFICATIONS IN PUBLIC OPINION