NEW YORK AN ELDERLY EL PASO TEXAS WOMAN WAS AWARDED MORE THAN 1 MILLION FROM A BROKER SHE CHARGED HAD MISHANDLED HER LIMITED PARTNERSHIP INVESTMENTS THE ARBITRATION AWARD AGAINST JEROME J HANSMANN OF SAN ANTONIO IS BELIEVED TO BE AMONG THE LARGEST EVER ISSUED AGAINST AN INDIVIDUAL BROKER THE 105 MILLION ORDER INCLUDED 700000 IN PUNITIVE DAMAGES MARIA DE JESUS H NAVAR THE INVESTOR WHO IS NOW 78 ALLEGED MR HANSMANN FRAUDULENTLY TOOK POSSESSION OF THREE LIMITED PARTNERSHIP INVESTMENTS MS NAVAR'S ATTORNEY TO GILSTRAP OF EL PASO SAID MR HANSMANN LATER SOLD THE LIMITED PARTNERSHIP INTERESTS BUT ONLY PAID A PART OF THE PROCEEDS TO MS NAVAR MERRILL LYNCH & CO AND AG EDWARDS INC TWO OF MR HANSMANN'S EMPLOYERS AT THE TIME EACH REACHED SETTLEMENTS WITH MS NAVAR ON HER CLAIMS THEY HAD BEEN NEGLIGENT IN SUPERVISING THE BROKER THE ATTORNEY SAID ATTORNEYS FOR MERRILL LYNCH AND AG EDWARDS SAID EACH FIRM AGREED TO PAY LESS THAN 100000 TO MS NAVAR NEITHER THEY NOR MS NAVAR'S ATTORNEY WOULD COMMENT ON SPECIFIC TERMS THE ARBITRATION CLAIMS AGAINST THE FIRMS WERE DISMISSED MERRILL LYNCH AND AG EDWARDS BOTH SAID THEY HAD BEEN UNAWARE OF MR HANSMANN'S ACTIONS MS NAVAR HADN'T HELD THE PARTNERSHIP INTERESTS IN ACCOUNTS AT THE FIRM MR HANSMANN WOULDN'T COMMENT ON THE AWARD OR MS NAVAR'S ALLEGATIONS IN HEARINGS BEFORE A PANEL OF NATIONAL ASSOCIATION OF SECURITIES DEALERS ARBITRATORS HE HAD DENIED ANY WRONGDOING HE SAID MS NAVAR HAD AGREED TO TRANSFER THE PARTNERSHIP INTERESTS TO HIM AND HAD RECEIVED TAX BENEFITS FROM THE ARRANGEMENT BUT THE ARBITRATORS WEREN'T SWAYED BY HIS STATEMENTS BESIDES MAKING THE AWARD THEY TOOK THE RARE STEP OF SAYING THAT MR HANSMANN HAD COMMITTED FRAUD AND SHOULD BE PRECLUDED FROM AVOIDING PAYMENT OF THE AWARD BY DECLARING PERSONAL BANKRUPTCY SAMANTHA RABIN AN ARBITRATION EXPERT WITH THE SECURITIES ARBITRATION COMMENTATOR A MAPLEWOOD NJ NEWSLETTER SAID MR HANSMANN'S CASE REPRESENTS ONLY THE SECOND TIME THAT NASD ARBITRATORS HAD TAKEN SUCH A STEP THE ONLY OTHER TIME WAS IN 1990 IN A CASE INVOLVING A SMALL FIRM CALLED USA SECURITIES OF DENVER 9311080063 931108 BUSINESS BRIEFS VENCOR INC LOUISVILLE KY SAID IT ACQUIRED TWO HOSPITALS IN FORT WORTH TEXAS AND TUCSON ARIZ FROM NATIONAL MEDICAL ENTERPRISES INC IN SANTA MONICA CALIF TERMS WEREN'T DISCLOSED ALCOA ALUMINUM CO OF AMERICA AND VAW ALUMINUM AG GERMANY FORMED A JOINT VENTURE TO PRODUCE AND MARKET ALUMINUM EXTRUSIONS FOR THE EUROPEAN AIRCRAFT AUTOMOTIVE AND DEFENSE INDUSTRIES ALCOA WILL OWN 60 WITH VAW OWNING THE REMAINING 40 WELLMAN INC SHREWSBURY NJ TERMINATED NEGOTIATIONS WITH BASF CORP GERMANY FOR THE PURCHASE OF BASF'S POLYESTER RESIN BUSINESS IN LOWLAND TENN NEITHER PARTY COULD AGREE ON FINANCIAL TERMS AND WELLMAN ALSO CITED UNRESOLVED DIFFERENCES WITH THE UNITED TEXTILE WORKERS OF AMERICA WHICH REPRESENTED BASF AG EMPLOYEES MAGMA POWER CO PURCHASED THE REMAINING 50 STAKE IN A PROPOSED POWER PLANT IN THE PHILIPPINES FROM MISSION ENERGY CO ROSEMEAD CALIF MAGMA AND MISSION HAD FORMED A PARTNERSHIP TO BUILD OPERATE AND OWN THE POWER PLANT ON THE ISLAND OF LEYTE WITH PHILIPPINES NATIONAL OIL CO SUPPLYING THE STEAM AND BUYING THE POWER TERMS WEREN'T DISCLOSED 9311080062 931108 LETTERS TO THE EDITOR STORM WARNINGS ON MEDICAL RESEARCH THE AMERICAN BAR ASSOCIATION'S CANONS OF PROFESSIONAL ETHICS WHICH SHOULD BE FAMILIAR TERRITORY TO OUR LAWYER PRESIDENT AND FIRST LADY TEAM STATE THAT CONFLICTING INTERESTS EXIST WHEN IN BEHALF OF ONE CLIENT IT IS A LAWYER'S DUTY TO CONTEND FOR THAT WHICH DUTY TO ANOTHER CLIENT REQUIRES HIM TO OPPOSE I SUBMIT THAT SUCH A CONFLICT OF INTEREST CURRENTLY EXISTS WITH RESPECT TO THE CLINTON HEALTH CARE REFORM PACKAGE IN HIS OCT 18 EDITORIAL PAGE ARTICLE THE HEALTH CARE INFLATION FANTASY JD KLEINKE ARGUES THAT HEALTH CARE INFLATION IS THE RESULT OF MEDICAL PROGRESS AND THAT DESPITE THE GOVERNMENT'S BEST EFFORTS TO SCARE AWAY INVESTMENT CAPITAL THERE WILL ALWAYS BE A PRIVATE SECTOR EFFORT TO IMPROVE MEDICINE I WISH I COULD BE EQUALLY SANGUINE ABOUT THE IMPACT OF HEALTH CARE REFORM AS PRESENTLY STRUCTURED ON THE FUTURE OF MEDICAL INNOVATION UNFORTUNATELY I AM NOT OPTIMISTIC AS AN ATTORNEY SPECIALIZING IN INTELLECTUAL PROPERTY LAW FOR MORE THAN 20 YEARS AND HAVING REPRESENTED NUMEROUS PHYSICIANS AND MEDICAL INSTRUMENT MANUFACTURERS IN PATENTING THEIR INVENTIONS I AM ACUTELY AWARE OF THE SENSITIVITY OF THIS ECONOMIC SECTOR TO TAMPERING WITH THE FINANCIAL INCENTIVES FOR TECHNOLOGICAL INNOVATION IN THE EDITORIAL COLUMN APPEARING ALONGSIDE MR KLEINKE'S ARTICLE THE JOURNAL OBSERVES THAT THE CENTERPIECE OF THE PROPOSED HEALTH CARE REFORM IS TO CLAMP PRICE CONTROLS ON ALL MEDICAL CARE ALTHOUGH SUCH CONTROLS WILL NOT END TECHNOLOGICAL INNOVATION IN THE HEALTH CARE SECTOR REST ASSURED THAT IT WILL SKEW THE FOCUS OF SCARCE R&D FUNDING AWAY FROM RISKIER BUT ALSO POTENTIALLY MORE REVOLUTIONARY BREAKTHROUGHS IN FAVOR OF MODEST EXTENSIONS OF CURRENT KNOWHOW THE PHARMACEUTICAL INDUSTRY HAS BEEN RAISING STORM WARNINGS ALONG THESE LINES FOR SEVERAL MONTHS NOW EG DAVID KREUTZER MERCK A LESSON IN INDUSTRIAL POLICY JOURNAL EDITORIAL PAGE AUG 4 I FOR ONE AM TAKING THOSE WARNINGS SERIOUSLY IS IT POSSIBLE THAT SOME OF OUR POLITICAL LEADERS WOULD NOT BE ENTIRELY AVERSE TO A SLOWDOWN IN THE PACE OF MEDICAL INNOVATION HAVE WE REACHED A POINT WHERE IT IS MORE POLITICALLY PALATABLE FOR PEOPLE TO DIE BECAUSE PREVENTIONS OR CURES HAVE NOT BEEN INVENTED THAN TO DENY ACCESS TO SUCH TREATMENTS BECAUSE OF COST CONSIDERATIONS WHEN HEALTH CARE REFORM WAS TOUTED AS HELPING TO BALANCE THE BLOATED FEDERAL BUDGET DEFICIT WAS ANYONE THINKING ABOUT THE FINANCIAL BENEFITS TO THE FEDERAL GOVERNMENT AND OUR PAYASYOUGO SOCIAL SECURITY SYSTEM OF HAVING AMERICANS DYING SOONER BECAUSE A NEW LIFESAVING DRUG OR SURGICAL PROCEDURE HAS NOT YET BEEN INVENTED IN VIEW OF THE FOREGOING CONSIDERATIONS IT DOES NOT SEEM UNREASONABLE TO EXPECT COMPLETE PRIVATIZATION OF THE SOCIAL SECURITY SYSTEM AS THE QUID PRO QUO FOR PASSAGE OF THE CLINTON HEALTH CARE REFORM PACKAGE THE GOVERNMENT SHOULD BE PREPARED TO RELINQUISH ITS CURRENT FINANCIAL INTEREST IN SEEING AMERICANS DIE SOONER RATHER THAN LATER IN RETURN FOR THE HEGEMONY OVER OUR FUTURE HEALTH THAT THE PRESIDENT IS PROPOSING IT IS ALSO IMPORTANT NOT TO DISCOUNT HOW ADVANCES CAN IMPROVE THE QUALITY OF LIFE AND PRODUCTIVITY PULMOZYME THE FIRST NEW TREATMENT FOR CYSTIC FIBROSIS CF IN 30 YEARS IS NOT A PALLIATIVE FEWER FLAREUPS MEANS FEWER HOSPITALIZATIONS FOR YOUNG CF VICTIMS THIS MEANS MORE TIME AT SCHOOL AND WITH THEIR FAMILIES WHO IN TURN CAN MISS FEWER WORK DAYS GENE THERAPY FOR CF AND OTHER ILLNESSES WILL BE EVEN COSTEFFECTIVE AND MORE BENEFICIAL NONETHELESS MR KLEINKE'S LARGER POINT IS WELL TAKEN THE FAILURE TO INVEST IN THESE INNOVATIONS IS TANTAMOUNT TO EUTHANASIA INDEED HIS OBSERVATION APTLY DESCRIBES THE CLINTON PROPOSAL TO CONTROL THE PRICE OF BREAKTHROUGH DRUGS AND HOW IT IS ALREADY DISCOURAGING INVESTMENT IN PROMISING BIOMEDICAL ADVANCES 9311080061 931108 POLITICS & POLICY US WARNS BANKS ON FAILURE TO COMPLY WITH GUIDELINES IN SELLING MUTUAL FUNDS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO SOME BANKS AREN'T COMPLYING WITH NEW REGULATORY GUIDELINES ON THE SALE OF MUTUAL FUNDS AND COULD FACE ENFORCEMENT ACTION OR POSSIBLY RESTRICTIVE LEGISLATION ACCORDING TO EUGENE LUDWIG COMPTROLLER OF THE CURRENCY THE AGENCY HAS FOUND BANKS THAT AREN'T ABIDING BY GUIDELINES RELEASED IN JULY THAT LAID OUT WHAT BANKS MUST DISCLOSE TO CONSUMERS IN SELLING MUTUAL FUNDS MR LUDWIG SAID MOST IMPORTANTLY THE GUIDELINES SAID BANKS MUST MAKE CLEAR THAT MUTUAL FUNDS AREN'T FEDERALLY INSURED AND COULD INVOLVE THE LOSS OF PRINCIPAL MR LUDWIG TOLD THE ANNUAL MEETING OF THE AMERICAN BANKERS ASSOCIATION THAT THE NONCOMPLIANCE PROBLEM WASN'T AN ISOLATED ONE AN EXAMPLE CITED APPEARED TO BURY THE FACT THAT THE MUTUAL FUNDS WEREN'T FEDERALLY INSURED ON THE BACK OF A BROCHURE IN SMALL PRINT MR LUDWIG'S OFFICE IS NOW SPOTCHECKING BANKS AROUND THE NATION TO DETERMINE THE SCOPE OF THE LAX PRACTICES BANKS FOUND TO BE CIRCUMVENTING THE GUIDELINES WILL FACE UNSPECIFIED ENFORCEMENT ACTION I'M CONCERNED THAT MANY CONSUMERS STILL DO NOT UNDERSTAND THAT THEY CAN LOSE MONEY ON MUTUAL FUNDS THAT THEY BUY FROM COMMERCIAL BANKS MR LUDWIG SAID I AM ALSO VERY UNHAPPY FROM WHAT I HAVE HEARD AND SEEN THAT SOME BANKS ARE NOT COMPLYING WITH OUR GUIDELINES IN THIS AREA MR LUDWIG RAISED THE SPECTER OF REGULATION LEGISLATED BY CONGRESS UNLESS THE INDUSTRY COMPLIES WITH THE VOLUNTARY GUIDELINES SEVERAL BILLS ALREADY HAVE BEEN INTRODUCED IN CONGRESS REQUIRING REGULATION ON MUTUALFUND SALES PRACTICES MUTUAL FUNDS ARE A GROWING SOURCE OF BUSINESS FOR BANKING COMPANIES WHICH NOW ACCOUNT FOR AN ESTIMATED 20 TO 30 OF ALL FUND SALES A SURVEY OF PARTICIPANTS AT THE ABA MEETING SHOWED THAT 65 OF BANKS LOSING MARKET SHARE ARE LOSING BUSINESS TO MUTUAL FUNDS BANKERS CONTEND THEY MUST BE ABLE TO SELL MUTUAL FUNDS AND OTHER FINANCIAL PRODUCTS SUCH AS ANNUITIES AND INSURANCE OR RISK BECOMING IRRELEVANT THE OFFICE OF THE COMPTROLLER OF THE CURRENCY WILL PUBLISH A BROCHURE FOR FINANCIAL INSTITUTIONS AND CONSUMERS EXPLAINING MUTUAL FUNDS AND ANNUITIES IN SIMPLE TERMS AND EMPHASIZING THAT THEY AREN'T FEDERALLY INSURED MEANWHILE ALAN GREENSPAN FEDERAL RESERVE BOARD CHAIRMAN SAID IN AN ADDRESS TO THE CONFERENCE THAT REGULATORS WILL MONITOR DERIVATIVES AND TRADING ACTIVITIES IN A MORE SYSTEMATIC WAY INCLUDING REQUIRING BANKS TO MAKE GREATER USE OF SIMULATIONS TO EVALUATE RISKS DERIVATIVES ARE AGREEMENTS WHOSE VALUES ARE DEPENDENT ON THE PRICE CHANGES OF STOCKS BONDS CURRENCIES OR COMMODITIES 9311080060 931108 GLOBAL VIEW VOTERS ARE DEMANDING MORE RESPONSIVE GOVERNMENT BY GEORGE MELLOAN VOTERS IN POLAND GREECE NEW ZEALAND AND CANADA RECENTLY HAVE TURNED LEFTWARD OR AT LEAST NOMINALLY SO IN THE US LAST WEEK THEY TURNED RIGHTWARD WITH REPUBLICAN VICTORIES IN NEW JERSEY NEW YORK CITY AND VIRGINIA IS THERE ANY PATTERN HERE THERE IS IN ALL CASES THE VOTERS PUNISHED POLITICAL PARTIES IN POWER THEY VOTED TO THROW THE RASCALS OUT OPINION POLLS THROUGHOUT THE WORLD WITH A FEW EXCEPTIONS SHOW LOW LEVELS OF ESTEEM FOR POLITICAL LEADERS JOHN MAJOR IS IN TROUBLE IN THE UNITED KINGDOM DESPITE LOW INFLATION AND A MILD ECONOMIC RECOVERY ITALY'S PARLIAMENT IS BELEAGUERED AFRAID TO STAND FOR A NEW ELECTION FRENCH VOTERS PURGED THEIR SOCIALIST PARTY EARLY THIS YEAR AND NOW MAY BE HAVING MISGIVINGS ABOUT CONSERVATIVE EDOUARD BALLADUR AS HE FAILS TO CONFRONT UNIONS AND FARMERS PARTIES OF RIGHT AND LEFT HAVE SEPARATE WAYS OF GETTING CROSSWISE WITH VOTERS ON THE LEFT THE MOST COMMON SIN IS A HUNGER FOR MORE TAXES AND BUREAUCRATIC POWER ON THE RIGHT IT IS USUALLY THE LACK OF A POSITIVE VISION AND THE POLITICAL COURAGE TO CARRY IT THROUGH IN POLAND POSTCOMMUNISM REFORMERS AFTER A GREAT START HAD BEGUN TO DRIFT LEAVING AN OPENING FOR TWO PARTIES MADEUP OF FORMER COMMUNISTS THESE THROWBACKS PROMISE RELIEF FOR THE REFORM'S LOSERS BUT NOT REPEAL OF REFORM IN GREECE A PARTY OF THE RIGHT HAD PROMISED REFORM BUT DELIVERED ONLY AUSTERITY SO THE GOVERNMENT NOW IS BACK IN THE HANDS OF THAT INDEFATIGABLE DEMAGOGUE ANDREAS PAPANDREOU NEW ZEALAND VOTERS ON SATURDAY PUNISHED A FLAGGING RIGHTLEANING NATIONAL PARTY REGIME BY LEAVING IT ONE SEAT SHORT OF A MAJORITY RAISING THE PROSPECT OF A HUNG PARLIAMENT OR AT BEST A WEAK COALITION GOVERNMENT HEADED BY EITHER THE NATIONAL OR LABOUR PARTY IN CANADA AND THE US AT FIRST GLANCE AND MISLEADINGLY VOTERS APPEARED TO HAVE GONE IN OPPOSITE DIRECTIONS CANADA'S RULING PROGRESSIVE CONSERVATIVES WERE ALMOST WIPED OUT RETAINING ONLY TWO SEATS IN PARLIAMENT THE LIBERALS WON CONTROL BUT IT IS HARD TO DISTINGUISH BETWEEN THE LIBERALS AND PROGRESSIVE CONSERVATIVES BOTH OF WHICH BEAR CERTAIN RESEMBLANCES TO THE US DEMOCRATIC PARTY THE CONSERVATIVES WHO CAME TO POWER IN 1984 LONG AGO RAN OUT OF ANY IDEAS OTHER THAN PILING UP NEW TAXES AND DEFICITS THE REAL STORY OF THE ELECTIONS WAS THE MISERABLE SHOWING OF THE FARLEFT NEW DEMOCRATIC PARTY WHICH LOST ALL BUT NINE OF ITS 44 SEATS AND THE STRONG SHOWING OF A NEW AND VIGOROUS PARTY OF THE RIGHT THAT SWEPT WESTERN CANADA THIS NEW REFORM PARTY WHICH HAD SPROUTED IN JUST THE LAST SIX YEARS WILL HAVE 52 SEATS IN THE 295SEAT PARLIAMENT ITS LEADER PRESTON MANNING CAPTURED VOTES BY IN ESSENCE TELLING OTTAWA TO BUZZ OFF A SIMILAR LINE WON ASCENDANCY FOR THE SEPARATIST BLOC QUEBECOIS WHICH CAPTURED 54 SEATS AND NOW WILL BE THE OFFICIAL OPPOSITION TO THE LIBERALS MICHAEL WALKER EXECUTIVE DIRECTOR OF THE FRASER INSTITUTE IN VANCOUVER CALLS THE REFORM PARTY SHOWING A VICTORY FOR REAL CONSERVATISM CANADA HAS FOR THE FIRST TIME A WELLARTICULATED COMPREHENSIVE CONSERVATIVE POSITION IT IS EXPLICITLY PROMARKET FAVORS CUTTING ENTITLEMENTS AND SUPPORTS LAW AND ORDER IT ALSO IS ANTIIMMIGRATION BY THE WAY BUT CANADA ISN'T THE ONLY PLACE WHERE OPPOSITION TO LIBERAL IMMIGRATION POLICIES HAS BECOME A MAINLINE ISSUE IT IS HAPPENING ALL OVER EUROPE AS WELL SO EVEN THOUGH THE LIBERALS WON 60 OF THE SEATS IN PARLIAMENT THEY WOULD BE FOOLISH NOT TO HEED THE MESSAGE FROM TWO MAJOR GEOGRAPHICAL SECTIONS OF THE COUNTRY IF THEY FAIL TO DO SO CANADA COULD ONCE AGAIN BE THREATENED SERIOUSLY WITH WHAT SO MANY CANADIANS FEAR A MAJOR LOSS OF FEDERAL POWER TO THE PROVINCES OR EVEN A BREAKUP OF THE COUNTRY HOW THE LIBERALS WILL RESPOND IS ANOTHER MATTER IT IS DOUBTFUL THAT THE NEW PRIME MINISTER JEAN CHRETIEN WILL HAVE MUCH MORE STOMACH FOR CUTTING BACK GOVERNMENT ENTITLEMENTS SUCH AS THE EXPENSIVE GOVERNMENT HEALTH SYSTEM THAN DID HIS PROGRESSIVE CONSERVATIVE PREDECESSORS THE MOST LIKELY RESULT WILL BE MORE DRIFT AND ANOTHER VOTER PURGE A FEW YEARS DOWN THE ROAD HE CAN ONLY HOPE THAT A NORTH AMERICAN ECONOMIC RECOVERY CAN BAIL HIM OUT BEFORE HIGH TAXES AND DEFICITS DO FURTHER DAMAGE TO THE ECONOMY AND TO OTTAWA'S FISC HIS BEST BET WOULD BE A TAX CUT BUT LIBERALS SHOW NO MORE TASTE THAN US DEMOCRATS FOR THAT WHICH BRINGS UP BILL CLINTON'S PROBLEM HE AND CONGRESSIONAL DEMOCRATS HAVE JUST LEGISLATED A HUGE TAX INCREASE THAT WILL EXTRACT NEARLY 250 BILLION FROM AMERICAN POCKETBOOKS OVER THE NEXT FIVE YEARS HE IS PROMOTING A NATIONAL HEALTH PLAN THAT IF PASSED WILL ADD A FURTHER MASSIVE BURDEN LIKE THE ONE IN CANADA PARTICULARLY FOR SMALL BUSINESS TO MAKE THIS PALATABLE HE HAS CLAIMED THAT HIS PROGRAMS WILL CUT THE FEDERAL DEFICIT YET ANOTHER PROMISE SERIOUS ECONOMISTS FIND DUBIOUS LAST WEEK'S ELECTION RESULT WAS IMPORTANT TO MR CLINTON BECAUSE A PROTOTYPICAL CLINTON DEMOCRAT JIM FLORIO WAS RUNNING FOR REELECTION AS NEW JERSEY'S GOVERNOR HE TOO HAD PROMISED NOT TO RAISE MIDDLE CLASS TAXES AND HAD WELSHED LAST WEEK HE LOST TO A RELATIVELY WEAK REPUBLICAN CANDIDATE DESPITE DESPERATE EFFORTS BY BILL HILLARY AND CAMPAIGN STRATEGIST JAMES CARVILLE TO SAVE HIM IT SEEMS THAT VOTERS DON'T FORGET BROKEN PROMISES AFTER ALL AS WITH MR CHRETIEN MR CLINTON ALSO NOW MUST HOPE FOR A STRONG RECOVERY WHICH HE WILL ATTRIBUTE TO HIS PROGRAMS TO GROW THE ECONOMY EVEN IN THE ABSENCE OF ANY SUCH PROGRAMS OTHERWISE HE IS IN TROUBLE ELECTORATES APPEAR TO BE VERY TIRED OF POLITICIANS WHO PROMISE ONE THING AND DO SOMETHING QUITE DIFFERENT OR NOTHING AT ALL ONCE IN POWER IRRESPONSIBLE BUDGETING AND SPENDING COUPLED WITH BOTH HIGH TAXES AND HIGH DEFICITS ARE ENCOUNTERING A RISING LEVEL OF INTOLERANCE LET'S LOOK FOR A MOMENT AT THREE COUNTRIES WHERE GOVERNMENTS HAVE BY NECESSITY BECOME MORE RESPONSIVE LATELY IN ITALY PARLIAMENT IS LEAVING PRIME MINISTER CARLO CIAMPI'S NONPOLITICAL GOVERNMENT UNMOLESTED IN HOPE OF ESCAPING THE FURTHER NOTICE AND WRATH OF VOTERS IN RUSSIA BORIS YELTSIN HAS JUST DEPOSED AN ENTIRE PARLIAMENT BY FORCE WINNING POPULAR ACCLAIM MAINLY BECAUSE HE IS PROMISING A NEW CONSTITUTION THAT WILL PROTECT PRIVATE PROPERTY AND EXPAND VOTER EMPOWERMENT IN PERU PRESIDENT ALBERTO FUJIMORO REACHED A 70 POPULAR APPROVAL RATING WHEN IN RESPONSE TO VOTER DISCONTENTS HE OFFERED THE NEW CONSTITUTION APPROVED BY REFERENDUM A WEEK AGO THE MESSAGE OF ALL THIS WOULD SEEM TO BE THAT IT PAYS TO TAKE THE VOTERS AND THEIR WISH FOR RESPONSIBLE AND RESPONSIVE GOVERNMENT SERIOUSLY 9311080059 931108 WHO'S NEWS JOHNSON & HIGGINS JOHNSON & HIGGINS NEW YORK THIS INSURANCE BROKERAGE CONCERN NAMED JOHN W GUSSENHOVEN 46 YEARS OLD CHAIRMAN OF ITS LONDONBASED HOLDING COMPANY JOHNSON & HIGGINS HOLDINGS LTD MR GUSSENHOVEN IS ALSO A DIRECTOR OF JOHNSON & HIGGENS AND PRESIDENT OF UNISON SA A COORDINATING UNIT FOR THE J&H GLOBAL INSURANCE BROKERAGE NETWORK HE SUCCEEDS CHARLES EP CARTER AND NUNO DE BRITO E CUNHA COCHAIRMEN OF THE LONDON OPERATION WHO LEFT THE COMPANY 9311080058 931108 POLITICS & POLICY HALPERIN NOMINATION TO DEFENSE DEPARTMENT POST IS HAUNTED BY GHOSTS OF IDEOLOGICAL BATTLES PAST BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF MORTON HALPERIN IS TO BE CONFIRMED AS ASSISTANT SECRETARY OF DEFENSE HE WILL HAVE TO RUN NOT ONE BUT TWO REPUBLICAN GANTLETS IN THE SENATE FIRST THE BESPECTACLED 54YEAROLD INSIDETHEBELTWAY ACTIVIST FACES A GRILLING OVER ADVICE HE HAS GIVEN TOP DEFENSE DEPARTMENT OFFICIALS ON SOMALIA BOSNIA HAITI AND GAYS IN THE MILITARY THEN MR HALPERIN'S ENEMIES ON THE SENATE ARMED SERVICES COMMITTEE ARE PLANNING AN ADDITIONAL EVENT FOR HIS CONFIRMATION HEARING AN UNUSUAL SESSION IN WHICH WITNESSES FROM THE INTELLIGENCE COMMUNITY WILL ALLEGE OTHER SINS IN SECRET TO THE PANEL WHAT MR HALPERIN WHO HAS SPENT 20 YEARS RAILING AGAINST GOVERNMENT SECRECY AND ALLEGED ABUSES BY US INTELLIGENCE AGENCIES IS FACING ARE OLD SCORES TRYING TO BE SETTLED CHARGES ALTON FRYE A SENIOR VICE PRESIDENT OF THE COUNCIL ON FOREIGN RELATIONS AND AN OLD FRIEND THIS IS SOMETHING THAT GOES TO IDEOLOGY RATHER THAN EVIDENCE MR HALPERIN'S CASE HAS SOME PARALLELS TO THAT OF LANI GUINIER WHOSE NOMINATION TO A JUSTICE DEPARTMENT POST WAS PULLED BY PRESIDENT CLINTON IN JUNE AFTER A FUROR OVER HER WRITINGS SCARED AWAY DEMOCRATIC DEFENDERS AS IN MS GUINIER'S CASE THE WHITE HOUSE DIDN'T MOUNT A VIGOROUS CAMPAIGN FOR MR HALPERIN'S NOMINATION WHILE OPPONENTS' ARGUMENTS MOUNTED IN FORCE AND FURY NOW MR HALPERIN'S DAY IN COURT MAY BE COMING HIS LONGDELAYED CONFIRMATION HEARING BEFORE THE SENATE PANEL IS TENTATIVELY SCHEDULED FOR LATER THIS MONTH BUT THINGS DON'T LOOK VERY PROMISING NINE OF THE PANEL'S 10 REPUBLICANS AND ONE OF THE 11 DEMOCRATS HAVE EXPRESSED SEVERE DOUBTS ABOUT HIS NOMINATION AND SEVERAL KEY DEMOCRATS INCLUDING THE COMMITTEE'S CHAIRMAN SEN SAM NUNN ARE SITTING ON THE FENCE THIS PERSON IS GOING TO BE DOGGED ABOUT CONTROVERSY CONTROVERSY ABOUT HIS JUDGMENT HIS INTEGRITY AND HIS POLICY RECOMMENDATIONS PROMISES FRANK GAFFNEY A FORMER REAGAN PENTAGON OFFICIAL AND NOW THE HEAD OF THE CENTER FOR SECURITY POLICY A CONSERVATIVE WASHINGTON RESEARCH UNIT THAT HAS BEEN DISTRIBUTING A HIGHLY SELECTIVE 36PAGE SUMMARY OF MR HALPERIN'S WRITINGS FRIENDS OF MR HALPERIN WHOSE ASSIGNED DEFENSE DEPARTMENT PORTFOLIO INCLUDES PEACEKEEPING AND HUMAN RIGHTS SAY HE HAS BEEN PICKED AS THE SCAPEGOAT FOR POLICY DECISIONS MADE BY OTHER PEOPLE IN THOSE SUDDENLY CONTROVERSIAL AREAS MY HUNCH IS THAT SIX MONTHS AGO IF HALPERIN HAD GONE UP TO STROM THURMOND AND BIT HIM ON THE LEG STROM WOULD HAVE HAD NO IDEA WHO HE WAS SAYS ARNOLD KANTER A FORMER NATIONAL SECURITY COUNCIL OFFICIAL DURING THE BUSH ADMINISTRATION NOT TRUE SAYS SEN THURMOND THE 91YEAROLD SOUTH CAROLINA REPUBLICAN WHO IS THE RANKING MINORITY MEMBER OF THE COMMITTEE AND THE LEADER OF THE CAMPAIGN AGAINST THE NOMINEE MR HALPERIN'S NAME HE SAYS RANG A BELL WITH ME IT GOES BACK A GOOD WAYS THE IDEA OF PUTTING HIM IN THE DEFENSE DEPARTMENT IS OUTRAGEOUS MR HALPERIN DOES GO BACK A GOOD WAYS IN WASHINGTON AND HE HAS BEEN A MAGNET FOR CONTROVERSIES ALMOST EVERY STEP OF THE WAY A CHILD PRODIGY WHO RECEIVED HIS DOCTORATE IN HISTORY FROM YALE AT AGE 23 HE WAS SOON HANDLING POLITICALMILITARY PLANNING IN THE PENTAGON ONE OF HIS COLLEAGUES IN THOSE DAYS IN THE VERY THICK OF THE VIETNAM WAR WAS LES ASPIN THE CURRENT SECRETARY OF DEFENSE IN THE NIXON ADMINISTRATION HENRY KISSINGER PLUCKED HIM OUT OF THE PENTAGON AND PUT HIM INTO A POLICYPLANNING JOB ON THE NATIONAL SECURITY COUNCIL THERE MR HALPERIN DESIGNED MUCH OF THE APPARATUS USED TODAY TO SHAPE PRESIDENTIAL DECISIONS ON SECURITY POLICY MR HALPERIN RESIGNED IN 1970 TO PROTEST THE INVASION OF CAMBODIA LATER HE FOUND THAT MR KISSINGER HAD ORDERED A WIRETAP PLACED ON HIS HOME PHONE TO SEE WHETHER HE HAD LEAKED INFORMATION THAT LATER BECAME INCLUDED IN THE SOCALLED PENTAGON PAPERS THAT CASE WAS NEVER MADE BUT MR HALPERIN TURNED AROUND AND SUED MR KISSINGER ARGUING VIOLATION OF HIS CIVIL RIGHTS THE SUIT WENT ON FOR 18 YEARS MEANWHILE MR HALPERIN JOINED THE WASHINGTON OFFICE OF THE AMERICAN CIVIL LIBERTIES UNION AND BECAME THE CAPITAL'S MOST VOCAL EXPERT ON NATIONAL SECURITY AND INTELLIGENCE LAWS OVER THE YEARS MR HALPERIN ESPECIALLY FOCUSED ON THE CENTRAL INTELLIGENCE AGENCY'S COVERT OPERATIONS ABROAD AMASSING A SIZABLE BODY OF CONTROVERSIAL WRITING AND A FOLLOWING AMONG LEFTLEANING GROUPS IT IS THESE ACTIVITIES THAT HAVE GOP SENATORS SO EXERCISED REPUBLICAN SEN BOB SMITH OF NEW HAMPSHIRE FOR INSTANCE LABELS MR HALPERIN AN EXTREME RADICAL WHOSE IDEOLOGY BACKGROUND AND WRITINGS ARE IN DIRECT CONFLICT WITH THE NATIONAL SECURITY STRATEGY AND REQUIREMENTS OF OUR NATION THE SECRET TESTIMONY BEING SOUGHT BY SENATE REPUBLICANS IS BELIEVED TO INVOLVE MR HALPERIN'S DEALINGS WITH PHILIP AGEE A FORMER CIA AGENT WHO TURNED AGAINST THE AGENCY IN 1975 WITH A BOOK CALLED INSIDE THE COMPANY IT LISTED ALLEGED SPY AGENCY ABUSES IN SOUTH AMERICA AND INCLUDED 30 PAGES OF NAMES OF CIA OVERSEAS OPERATIVES ON BEHALF OF THE ACLU MR HALPERIN DEFENDED MR AGEE IN A DEPORTATION HEARING IN ENGLAND AND ALSO WROTE A FAVORABLE REVIEW OF THE BOOK THE REVIEW DID NOT MENTION THE BOOK'S EXPOSURE OF US FOREIGN AGENTS DONE WITH THE HELP OF CUBA'S INTELLIGENCE AGENCY ONE OF THEM LATER WAS KILLED MR AGEE AND HIS BOOK INFURIATED THE CIA BUT THE MAN WHO HEADED THE AGENCY AT THE TIME WILLIAM COLBY SUPPORTS MR HALPERIN'S NOMINATION THE FORMER CIA CHIEF SAYS HIS RESPECT FOR MR HALPERIN STEMS FROM NUMEROUS APPEARANCES WHERE THE TWO DEBATED WHETHER THE SPY AGENCY'S COVERT OPERATIONS SHOULD BE ENDED I'VE DEALT WITH THE CRAZIES ON STAGE AND I KNOW THE DIFFERENCE BETWEEN THE CRAZIES AND A RESPONSIBLE CRITIC MR COLBY SAYS MORT IS A RESPONSIBLE CRITIC HE HITS YOU ON THE SUBSTANCE THE EMBATTLED NOMINEE HAS OTHER DEFENDERS AS WELL IT WOULD BE HARD TO IMAGINE A NOMINEE BETTER QUALIFIED THAN MORT HALPERIN INSISTS DEMOCRATIC SEN JOSEPH BIDEN OF DELAWARE WHO HAS SAID OF MR HALPERIN THERE'S NOBODY IN WASHINGTON SMARTER THAN HE IS TO ADD FURTHER WEIGHT TO MR HALPERIN'S NOMINATION SEN BIDEN ASSERTED IN A RECENT SENATE SPEECH THAT IT IS ENDORSED BY MR KISSINGER THAT IS NEWS TO MR KISSINGER SAID A SPOKESMAN FOR MR HALPERIN'S FORMER BOSS WHO RUNS A FOREIGN POLICY CONSULTING FIRM IN NEW YORK WHILE MR KISSINGER WROTE A FLATTERING LETTER TO MR HALPERIN IN 1991 TO SETTLE THE LAWSUIT AGAINST HIM HE HAS NOT TAKEN A POSITION ON THE HALPERIN NOMINATION AND HE NEVER INTENDS TO ADDS THE SPOKESMAN AS FOR MR HALPERIN HE IS IN A POSITION WHERE HE CAN'T DEFEND HIMSELF HE HAS BEEN A CONSULTANT TO MR ASPIN SINCE EARLY FEBRUARY AND ISN'T ALLOWED TO MAKE POLICY DECISIONS OR SPEAK TO REPORTERS PRIOR TO CONFIRMATION ASKED ABOUT THE NATURE OF MR HALPERIN'S ADVICE ON BOSNIA HAITI SOMALIA AND GAYS IN THE MILITARY A PENTAGON SPOKESMAN DESCRIBES IT ONLY AS BEING NONAUTHORITATIVE 9311080057 931108 CHIEF OF MYLAN LABORATORIES MCKNIGHT DIES NO SUCCESSOR NAMED YET FIRM HAS BEEN SUBJECT OF TAKEOVER SPECULATION BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH MYLAN LABORATORIES INC SAID ROY MCKNIGHT THE COMPANY'S 72YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER DIED SATURDAY OF A HEART ATTACK WHILE VACATIONING IN MIAMI BEACH FLA THE GENERIC DRUG MAKER DIDN'T IMMEDIATELY NAME A SUCCESSOR BUT A SPOKESWOMAN SAID MILAN MIKE PUSKAR VICE CHAIRMAN AND PRESIDENT HAD THE SITUATION UNDER CONTROL STILL MR MCKNIGHT'S DEATH COULD GIVE A FURTHER BOOST TO TAKEOVER SPECULATION THAT HAS HELPED PROPEL THE COMPANY'S STOCK SINCE MR MCKNIGHT SAID LAST MONTH THAT HALF A DOZEN COMPANIES HAD APPROACHED MYLAN ABOUT VARIOUS ARRANGEMENTS THE COMPANY SUBSEQUENTLY SAID NO NEGOTIATIONS WERE UNDER WAY INVOLVING A TAKEOVER OF MYLAN AND A SPOKESMAN YESTERDAY REITERATED THAT COMMENT BUT GREGORY M DRAHUSCHAK AN ANALYST AT JANNEY MONTGOMERY SCOTT INC IN PITTSBURGH PREDICTED THAT WITH MR MCKNIGHT'S DEATH THE TAKEOVER FEVER IS GOING TO BLOW INTO A HURRICANE WHILE MYLAN HAS SUFFICIENT LAYERS OF MANAGEMENT AND EXPERTISE TO CARRY ON MR DRAHUSCHAK SAID MR MCKNIGHT WAS THE COMPANY WITHOUT HIS DIRECTION SHAREHOLDERS MAY PRESSURE THE BOARD TO SELL MR DRAHUSCHAK SAID AND MR MCKNIGHT'S STAKE ABOUT 26 OF THE COMPANY'S COMMON STOCK OUTSTANDING AT APRIL 30 COULD BE PUT UP FOR SALE GIVING A POTENTIAL BUYER A FOOTHOLD MYLAN RECENTLY HAS BEEN BASKING IN THE POPULARITY OF GENERIC DRUGS WHICH WITH TODAY'S EFFORTS TO CUT HEALTHCARE COSTS ARE IN FAVOR BECAUSE OF THEIR LOWER PRICES JUST LAST MONTH IT BECAME THE FIRST COMPANY TO WIN APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MAKE A GENERIC EQUIVALENT OF SMITHKLINE BEECHAM PLC'S TAGAMET ULCER DRUG A POTENTIALLY LUCRATIVE MARKET AND LAST WEEK IT GAINED APPROVAL TO SELL TWO NEW GENERIC PRODUCTS FOR TREATING ANGINA AND HYPERTENSION MYLAN'S STOCK HAS RESPONDED TO THE FDA APPROVALS IT HAS CLIMBED FROM THE LOW 20S IN AUGUST TO ABOVE 30 RECENTLY IT FELL 875 CENTS A SHARE TO 30125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY MR MCKNIGHT WAS NAMED CHAIRMAN OF MYLAN IN 1976 WHEN THE COMPANY WAS ON THE BRINK OF BANKRUPTCY BUT WITH THE MANAGEMENT TEAM HE PIECED TOGETHER MYLAN GREW FROM A COMPANY WITH ONE FACILITY THAT MADE ANTIBIOTICS FOR OTHER COMPANIES TO ONE OF THE NATION'S BIGGEST GENERIC DRUG MAKERS WITH OPERATIONS IN SEVEN STATES AND PUERTO RICO MR DRAHUSCHAK SAID MR MCKNIGHT COULD EASILY PLOT MYLAN'S STRATEGY BECAUSE HE KNEW THE COMPANY'S DIFFERENT MARKETS AND COMPETITORS SO WELL EVERY BIT OF THE NITTYGRITTY DETAIL WAS IN HIS HEAD MR DRAHUSCHAK SAID 9311080056 931108 HEARD ON THE STREET INVESTORS BET ON RJR NABISCO TO BENEFIT MOST FROM A POSSIBLE INCREASE IN CIGARETTE PRICES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS ARE FINDING THE CIGARETTESTOCK HABIT HARD TO KICK NEW MONEY POURED INTO TOBACCO SHARES LATE FRIDAY AS THE STREET SEIZED ON A PHILIP MORRIS DISCLOSURE AS A POSSIBLE SIGN OF AN IMPENDING CIGARETTE PRICE RISE THE BIGGEST BENEFICIARY OF HIGHER PRICES MIGHT TURN OUT TO BE RJR NABISCO HOLDINGS WHOSE SHARES SOARED 11 FRIDAY AND GOT ANALYSTS TALKING OF MORE GAINS TO COME FRIDAY'S BOMBSHELL FROM PHILIP MORRIS WAS THE DISCLOSURE THAT THE COMPANY HAS TOLD US WHOLESALERS IT WILL LIMIT THE AMOUNT OF CIGARETTES THEY CAN BUY STOCK TRADERS QUOTED ANALYST GARY BLACK AT SANFORD C BERNSTEIN & CO AS SAYING THAT BECAUSE WHOLESALERS USUALLY TRY TO FILL UP THEIR STOCKROOMS AT THE OLD PRICE BEFORE ANY PRICE INCREASE PHILIP MORRIS'S MOVE SIGNALS A PENDING PRICE INCREASE PHILIP MORRIS CONFIRMED THAT IT PLACED WHOLESALERS ON ALLOCATION BUT DECLINED TO COMMENT ON ITS PRICING INTENTIONS PHILIP MORRIS' STOCK ROSE 2 7/8 TO 55 1/2 ON THE NEWS WITH VOLUME REACHING 33 MILLION SHARES FRIDAY BUT THE DAY'S STANDOUT WAS RJR LEADING THE BIG BOARD MOSTACTIVE LIST WITH A JUMP OF 5/8 TO 6 1/2 ON FOUR TIMES NORMAL VOLUME AS THE COMPANY MOST DEPENDENT ON DOMESTIC TOBACCO RJR SAW ITS SHARES CRASH HARDEST AFTER PHILIP MORRIS INITIATED SWEEPING PRICE CUTS IN APRIL BUT IN THE PAST MONTH RJR'S STOCK HAS BEEN MOVING UP SMARTLY AND SOME BULLISH ANALYSTS SAY THE SHARES COULD CLIMB AN ADDITIONAL 33 IN THE NEXT 12 MONTHS THE BETS ON AN IMPROVED PROFIT PICTURE HAVE GENERATED UNUSUALLY HEAVY TRADING IN RJR SHARES LATELY RJR'S TYPICAL DAILY VOLUME IS ABOUT 26 MILLION SHARES BUT IN THE PAST MONTH VOLUME HAS OFTEN BEEN DOUBLE OR TRIPLE THAT LEVEL ON FRIDAY 122 MILLION SHARES CHANGED HANDS WHAT'S BEHIND THE HECTIC TRADING THERE ARE SOME BIG INSTITUTIONS COMING INTO THE STOCK THAT WEREN'T THERE BEFORE SAYS MR BLACK HE THINKS THE SHARES WILL HIT 8 IN THE NEXT 12 MONTHS TRADERS SAY ONE ACTIVE BUYER HAS BEEN MUTUALFUND GIANT FIDELITY INVESTMENTS IN A SAVVY MOVE FIDELITY RETREATED FROM TOBACCO AND OTHER CONSUMERPRODUCTS STOCKS LAST YEAR A FIDELITY SPOKESWOMAN WON'T CONFIRM TALK THAT THE FUND COMPANY HAS BEEN BOTTOMFISHING IN TOBACCO SHARES SAYING WHETHER WE GET BACK IN OR NOT IS FOR US TO DO AND THEN TO TELL THE OTHER MAIN REASON FOR THE STEPPEDUP INTEREST IS INVESTORS' HOPE THAT THE CIGARETTE COMPANIES HAVE LAID DOWN THEIR SWORDS IN THE PRICE WAR WE HAVE CLEARLY BEEN SEEING SOME RELIEF OF RISK THAT CIGARETTE PRICES WILL DETERIORATE FURTHER SAYS MARC COHEN AT GOLDMAN SACHS GOOD NEWS FOR THE CIGARETTE BUSINESS IS AMPLIFIED AND LEVERAGED THROUGH RJR THAT'S BECAUSE RJR GETS ABOUT HALF ITS PROFITS FROM SELLING CAMEL WINSTONS AND OTHER CIGARETTES IN THE US RELYING MORE HEAVILY ON THE DOMESTIC MARKET THAN RIVAL COMPANIES DO SOME OF THE RECENT BUYING ALSO REPRESENTS INVESTORS PLACING BETS ON RJR'S NEW CHAIRMAN AND CHIEF EXECUTIVE CHARLES M HARPER MR HARPER JOINED RJR EARLIER IN THE YEAR AFTER A CAREER SPENT ENRICHING SHAREHOLDERS AT CONAGRA INC MR HARPER RECENTLY DISCLOSED AMBITIOUS FINANCIAL OBJECTIVES FOR RJR ANALYSTS SAID THAT IF MR HARPER CAN MEET HIS TARGETS THAT WOULD TRANSLATE INTO A 20 ANNUAL PROFIT GROWTH RATE FOR RJR YOU'VE GOT A CHANCE TO DOUBLE YOUR MONEY IN FOUR YEARS SAYS MR COHEN AT GOLDMAN SACHS THAT'S AN EXTRAORDINARY RETURN RJR HAS ALSO BEEN SUCCESSFUL RECENTLY IN GETTING SOME INVESTORS TO PAY MORE ATTENTION TO THE PROMISING GROWTH PROSPECTS OF ITS NABISCO FOOD BUSINESS FINALLY INVESTORS ARE BETTING THAT RJR MAY ONCE AGAIN ATTEMPT TO BOOST ITS VALUE BY SPLITTING APART ITS FOOD AND TOBACCO BUSINESSES BUT RJR BOOSTERS REMAIN A MINORITY THE COMPANY DOESN'T PAY A DIVIDEND AND HAS NO PLANS TO START DOING SO SOON DETRACTORS SAY IT'S THE NO 2 COMPANY IN A TROUBLED INDUSTRY AND ANY UNEXPECTED WEAKENING IN CIGARETTE PRICES COULD ONCE AGAIN CLOBBER THE SHARES A NUMBER OF TOP ANALYSTS SUGGEST AVOIDING THE STOCK MIKE HARPER IS TRYING TO DO HIS MAGIC SAYS A SKEPTICAL BARRY M ZIEGLER TOBACCO ANALYST AT AG EDWARDS & SONS INC IN ST LOUIS MR ZIEGLER IS TROUBLED BY A STRING OF HIGHLEVEL MANAGEMENT DEPARTURES AT RJR THE PERCEPTION IS THAT TO SOME DEGREE IT'S A COMPANY IN DISARRAY AND THE AGE OF THE CHIEF EXECUTIVE WHO IS 66 YEARS OLD THE GUY IS NOT GOING TO BE THERE FOR A LONG PERIOD OF TIME MR ZIEGLER SAYS MR ZIEGLER ALSO SAYS MR HARPER'S ATTEMPT TO GET INVESTORS TO FOCUS ON CASH EARNINGS AS A YARDSTICK IS A TOUGH SELL FINALLY STANDARD & POOR'S CORP IN SEPTEMBER PUT MUCH OF RJR'S DEBT UNDER REVIEW FOR A POSSIBLE DOWNGRADE THE SENIOR DEBT IS RATED TRIPLEBMINUS BY S&P NOTE PERSHARE FIGURES ARE FULLY DILUTED 9311080055 931108 BP UNIT PLANS TO BUY MORE OIL ASSETS IN ALASKA TO SOLIDIFY ITS POSITION THERE BY ALLANNA SULLIVAN STAFF REPORTER OF THE WALL STREET JOURNAL THE EXPLORATION UNIT OF BRITISH PETROLEUM CO SAID IT INTENDED TO BUY ADDITIONAL OIL PROPERTIES IN ALASKA TO FURTHER CONSOLIDATE ITS POSITION AS A MAJOR PLAYER THERE THE BP UNIT SAID FRIDAY THAT IT SIGNED A LETTER OF INTENT WITH CONOCO INC A UNIT OF DUPONT CO TO SWAP CERTAIN OIL PROPERTIES BP WOULD RECEIVE CONOCO'S EXPLORATION AND PRODUCTION ASSETS ON THE PROLIFIC OILPRODUCING NORTH SLOPE OF ALASKA AND SOME DEEPWATER PROPERTIES IN THE GULF OF MEXICO IN EXCHANGE CONOCO WOULD RECEIVE A 33 INTEREST IN BP'S WHOLLY OWNED AMBERJACK OILFIELD IN THE GULF WHEN THE TRANSACTION IS COMPLETED CONOCO WILL HAVE PULLED OUT OF ALASKA THE AMBERJACK OILFIELD PRODUCES 22000 BARRELS A DAY AND IS LOCATED 20 MILES OFF THE COAST OF LOUISIANA SEPARATELY BP HAS ALSO AGREED TO BUY CHEVRON CORP'S 27 INTEREST IN THE MILNE POINT OILFIELD AND PIPELINE SYSTEM ALONG THE NORTHERN ALASKA COAST FOR AN UNDISCLOSED AMOUNT OF MONEY AS PART OF THE CONOCO TRANSACTION BP IS ACQUIRING THAT COMPANY'S 64 INTEREST IN MILNE AS WELL WHEN THE TRANSACTIONS ARE COMPLETED BP WILL OWN 91 OF MILNE WHICH PRODUCES ABOUT 19000 BARRELS A DAY OCCIDENTAL PETROLEUM CORP OWNS THE REMAINING SMALL STAKE THE PURCHASES PUT TO REST SPECULATION WITHIN ALASKA AND THE OIL INDUSTRY ABOUT BP'S COMMITMENT TO REMAINING IN ALASKA WE ARE EXPANDING FURTHER OUR STRONG POSITION IN ALASKA BY GAINING ACCESS TO TWO PROMISING AREAS ON THE NORTH SLOPE SAID JOHN BROWNE CHIEF EXECUTIVE OF BP EXPLORATION IN LONDON ALASKA CURRENTLY ACCOUNTS FOR ALMOST HALF OF BP'S WORLDWIDE PRODUCTION WITH MUCH OF THE COMPANY'S REMAINING OUTPUT COMING FROM THE NORTH SEA ACCORDING TO A BP SPOKESMAN THE CONOCO TRANSACTION WILL BE AN EVEN SWAP WITH NO CASH CHANGING HANDS ACCORDING TO THE SPOKESMAN THE CONOCO TRANSACTION ALSO INCLUDES ABOUT 2000 BARRELS DAILY FROM SCHRADER'S BLUFF A SMALL SEGMENT OF THE GIANT WEST SACK OILFIELD WHICH OVERLIES MILNE'S GEOLOGY MUCH OF THE INDUSTRY CONSIDERS WEST SACK A DIFFICULT PROSPECT TO PRODUCE BECAUSE OF THE OIL'S VISCOUS AND SANDY PROPERTIES BP IS ALSO RECEIVING CONOCO'S 40 STAKE IN THE SOCALLED BADAMI DISCOVERY IN ALASKA AND 54 EXPLORATION BLOCKS IN THE GULF OF MEXICO ALL LOCATED NEAR THE HUGE MARS OILFIELD BEING DEVELOPED BY SHELL OIL CO THE US UNIT OF ROYAL DUTCH/SHELL GROUP OF COS AND BP THE MARS FIELD ESTIMATED TO HOLD AS MUCH AS 700 MILLION BARRELS OF OIL IS CONSIDERED THE BIGGEST OIL FIND IN THE GULF IN 20 YEARS THE BADAMI DISCOVERY CHARACTERIZED AS AN OIL DISCOVERY BY BP IS ABOUT 60 MILES EAST OF THE PROLIFIC PRUDHOE BAY OILFIELD IN ALASKA IT'S STILL UNCLEAR WHETHER THE PROSPECT CONTAINS COMMERCIAL QUANTITIES OF OIL TWO WELLS HAVE BEEN DRILLED SO FAR WITH THE FIRST WELL PRODUCING 4200 BARRELS A DAY CONSIDERED BY GEOLOGISTS TO BE AN EXCELLENT FLOW RATE RESULTS REGARDING THE SECOND WELL HAVE NEVER BEEN DISCLOSED BP IS CURRENTLY DOING APPRAISAL WORK AT BADAMI TO DETERMINE WHETHER TO DRILL A THIRD WELL NEXT YEAR IN EXCHANGE FOR THE APPRAISAL WORK BP WILL EARN AN ADDITIONAL 35 INTEREST IN BADAMI BOOSTING ITS STAKE TO 75 THE REMAINING 25 IS OWNED BY PETROFINA DELAWARE INC 9311080054 931108 FRENCH INDUSTRIAL OUTPUT RISES PARIS INDUSTRIAL PRODUCTION IN FRANCE ROSE A SEASONALLY ADJUSTED 01 IN THE SECOND QUARTER THE NATIONAL STATISTICS INSTITUTE INSEE REPORTED THE INDUSTRIAL PRODUCTION INDEX WHICH EXCLUDES PUBLIC WORKS PROJECTS ROSE TO 1079 DURING THE SECOND QUARTER FROM 1078 IN THE FIRST QUARTER THE INDEX USES THE 1985 LEVEL OF 100 AS A BASE ECONOMISTS SAID THE QUARTERLY FIGURE WAS IN LINE WITH EXPECTATIONS SINCE THE MONTHLY DATA FOR THE PERIOD HAD BEEN PREVIOUSLY RELEASED ONE ANALYST SAID THE SLIGHT GAIN IN THE INDEX INDICATED THAT INDUSTRIAL ACTIVITY REMAINED MOSTLY STABLE DURING THE SECOND QUARTER WHILE SHOWING SOME SMALL SIGNS OF GROWTH BUT NOTHING SURPRISING 9311080053 931108 REVIEW & OUTLOOK EDITORIAL A MODEST PROPOSAL FOR A NEW JAPAN WE'VE WRITTEN HERE RECENTLY ABOUT THE PROBLEM OF FINDING NATIONAL LEADERS UP TO THE TASK OF GOVERNING IN A WORLD IN WHICH REVOLUTIONS IN TELECOMMUNICATIONS AND TRADE SIMULTANEOUSLY CAUSE BENEFITS AND STRAINS ON POLITICAL SYSTEMS ONE OF THE LARGEST STRAINS CLEARLY IS THE CLASH OF NATIONALITY GROUPS AS PEOPLES FOR ALL SORTS OF REASONS CROSS BORDERS JAPAN AN ISLAND HAS AN ESPECIALLY TROUBLED HISTORY CONSIDER THE FOLLOWING AN APPLICANT WHO LOOKS AND SPEAKS JAPANESE AND WHOSE FAMILY HAS LIVED IN JAPAN FOR GENERATIONS LET'S CALL HIM MR KONO APPLIES FOR A JOB AT A TOKYO BLUECHIP COMPANY THINGS ARE GOING SWIMMINGLY UNTIL THE INTERVIEWER ASKS FOR HIS FAMILY REGISTRATION HE CAN'T PRODUCE ONE THE INTERVIEW ENDS ABRUPTLY DEJECTED MR KONO WALKS HOME TO HIS NEW FLAT WHERE A FINE AWAITS BECAUSE HE HAS FAILED TO INFORM THE POLICE THAT HE HAS MOVED THEN HIS FIANCEE CALLS AND HER FAMILY INSISTS THEIR ENGAGEMENT BE BROKEN BECAUSE A PRIVATE DETECTIVE HAS DISCOVERED THE AWFUL TRUTH BEHIND HIS TROUBLES MR KONO IS OF KOREAN DESCENT ALSO MR KONO CANNOT VOTE OR JOIN THE CIVIL SERVICE HE HAS TO REAPPLY FOR ENTRY EVERY TIME HE LEAVES JAPAN IF HE DECIDES TO BECOME A JAPANESE CITIZEN THERE IS NO ASSURANCE HE WILL BE ALLOWED TO THE SCREENING IS FEROCIOUS AND EVERYTHING FROM HIS TAXES TO HIS RELATIONS WITH HIS NEIGHBORS WILL BE SCRUTINIZED THERE ARE SOME 700000 RESIDENTS IN JAPAN OF KOREAN ETHNICITY MOST OF WHOM ARE DESCENDANTS OF LABORERS SHIPPED OVER FROM THENCOLONIZED KOREA TO FILL DIRTY JOBS FOR THE JAPANESE BEFORE AND DURING WORLD WAR II THEY PROBABLY WOULD HAVE GONE HOME IF THE KOREAN WAR HAD NOT QUICKLY ENSUED KILLING HUNDREDS OF THOUSANDS CUTTING OFF THE NORTH AND DESTROYING THE ECONOMY SO THEY STAYED BUT NEITHER THEY NOR THEIR CHILDREN AND NOW GRANDCHILDREN HAVE EVER BEEN ACCEPTED AS FULL MEMBERS OF JAPANESE SOCIETY TO BE SURE THINGS HAVE IMPROVED MARGINALLY AS OF THIS YEAR THEY NO LONGER HAVE TO BE FINGERPRINTED A PARTICULARLY GALLING PRACTICE LIKE ALL NONJAPANESE PERMANENT RESIDENTS WHO COMPRISE JUST 1 OF THE POPULATION THEY MUST STILL CARRY AN ALIEN REGISTRATION CARD AT ALL TIMES NOR ARE THEY REQUIRED ANY LONGER TO ASSUME A JAPANESESOUNDING NAME WHEN TAKING JAPANESE CITIZENSHIP IF PRIME MINISTER MORIHIRO HOSOKAWA IS SERIOUS ABOUT HIS NEW GOVERNMENT BEING A CATALYST FOR REFORM IN JAPANESE SOCIETY THEN IT'S TIME FOR A CHANGE IN HOW THE JAPANESE GOVERNMENT TREATS ITS COUNTRY'S FOREIGN PERMANENT RESIDENTS 80 OF WHOM ARE KOREAN A NEW DEAL WOULD BE GOOD FOR THEM GOOD FOR JAPAN AND GOOD FOR JAPAN'S TROUBLED RELATIONS WITH THE REST OF ASIA THIS IS PARTICULARLY TRUE OF SOUTH KOREA TOKYO'S ALWAYSPRICKLY RELATIONS WITH SEOUL ARE ENDURING ANOTHER BAD PATCH OVER THE ISSUE OF JAPAN'S FORCED ENLISTMENT OF WORLD WAR II SEX SLAVES THE BEST REMEDY IS TO RECOGNIZE THE REALITY JAPAN'S 700000 RESIDENTS OF KOREAN DESCENT ARE PART OF JAPAN STREAMLINED PROCEDURES FOR CITIZENSHIP SHOULD BE INTRODUCED AND RESTRICTIONS ON GOVERNMENT EMPLOYMENT ABOLISHED GENUINE RECOURSE SHOULD BE ESTABLISHED FOR SUBJECTS OF DISCRIMINATION THERE ARE LAWS ON THE BOOKS THAT BAN DISCRIMINATION ON THE BASIS OF ANCESTRY BUT THEY HAVE NO TEETH THE IDEA IS NOT TO CREATE A LITIGATION NIGHTMARE BUT TO INSTITUTE MEANS TO ASSURE ETHNIC KOREANS THAT THEY ARE ACCEPTED MEMBERS OF THE JAPANESE POLITY WHEN THAT HAPPENS MORE WILL APPLY FOR CITIZENSHIP THE MEASURE OF AN INDIVIDUAL'S ATTACHMENT TO THE SOCIETY IN WHICH HE LIVES NOW IT'S NOT SURPRISING THAT ONLY ABOUT 160000 HAVE BOTHERED TO DO SO SINCE WORLD WAR II WHY WOULD THESE ETHNIC KOREANS HARASSED ON THE PLAYGROUND SOCIALLY DEMEANED AND REGULARLY DISCRIMINATED AGAINST WANT TO TURN JAPANESE DESPITE THE RHETORIC OF CHANGE FROM MR HOSOKAWA ET AL THERE HASN'T BEEN A WORD FROM TOKYO THERE ARE HOWEVER HOPEFUL STIRRINGS AT LOCAL LEVELS ACCORDING TO THE NIKKEI WEEKLY MUNICIPAL ASSEMBLIES IN KISHIWADA CITY AND YOUKAICHI BOTH IN OSAKA PREFECTURE HOME TO A LARGE PROPORTION OF ETHNIC KOREANS PASSED MOTIONS RECOMMENDING THAT THE CENTRAL GOVERNMENT ALLOW FOREIGN PERMANENT RESIDENTS TO VOTE LOCALLY AND RUN FOR OFFICE MOST FUNDAMENTALLY HERE MANY ASIANS SUSPECT JAPAN OF SUFFERING A DEEPROOTED SUPERIORITY COMPLEX A NOT VERY DIFFERENT MENTALITY THAN THE ONE THAT WROUGHT JAPANESE IMPERIALISM EARLIER THIS CENTURY WE THINK THAT ASSESSMENT IS OVERBLOWN BUT ACKNOWLEDGE THE BITTER EXPERIENCE FROM WHICH IT IS DRAWN AS A FREE PROSPEROUS AND VIBRANT SOCIETY JAPAN HAS MUCH TO BE PROUD OF BUT THERE ARE DARK SHADOWS TO JAPAN'S SUCCESS STORY AND ITS CONTINUED MISTREATMENT OF ETHNIC KOREANS IS THE DARKEST OF THESE 9311080052 931105 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 9311080051 931108 P&G MULLS PLAN TO CUT COSTS OF DISTRIBUTION RETAILERS WOULD BE FORCED TO BUY IN BIG AMOUNTS BURDENING SMALL OUTLETS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO SEEKING TO CUT ITS DISTRIBUTION COSTS IS CONSIDERING REQUIRING RETAILERS TO BUY ITS PRODUCTS ONLY IN LARGE QUANTITIES EFFECTIVELY FORCING THOSE THAT NEED SMALLER AMOUNTS TO PAY A PREMIUM TO BUY THROUGH WHOLESALERS RETAILERS SAY THE NEW RULES WHICH P&G HAS TOLD THEM IT LIKELY WILL IMPLEMENT AROUND JUNE WOULD REPRESENT A BIG CHANGE FROM THE CURRENT SYSTEM RETAILERS SAY THEY CAN NOW CHOOSE AMONG A WIDE RANGE OF QUANTITIES AND VOLUME DISCOUNTS WHEN BUYING DIRECTLY FROM P&G BUT UNDER ONE PROPOSAL P&G HAS DESCRIBED RETAILERS WOULD HAVE TO ORDER 500 CASES AT A TIME OR FULL TRUCKLOADS TYPICALLY CONTAINING MORE THAN 1800 CASES OF MOST OF THE COMPANY'S PRODUCTS WHICH INCLUDE TIDE LAUNDRY DETERGENT CREST TOOTHPASTE AND CHARMIN TOILET TISSUE A P&G SPOKESWOMAN SAID THE CINCINNATI CONSUMERPRODUCTS COMPANY DOESN'T HAVE A SPECIFIC PLAN TO CHANGE PRICING IN PLACE AND WE SIMPLY ARE NOT GOING TO COMMENT ON WHAT WE MAY OR MAY NOT DO IN THE FUTURE HOWEVER SHE ACKNOWLEDGED THAT P&G IS ALWAYS LOOKING FOR WAYS TO REDUCE COSTS BY ELIMINATING COMPLEXITY IN THE DISTRIBUTION SYSTEM AND WE REGULARLY EXCHANGE IDEAS WITH OUR TRADE PARTNERS BUT RETAILERS SAY P&G HAS TOLD THEM IT PLANS TO OVERHAUL ITS DISTRIBUTION SYSTEM LARGELY BECAUSE OF THE COST OF HANDLING ORDERS FROM SMALL CUSTOMERS THAT REQUIRE P&G TO SHIP ORDERS DIRECTLY TO INDIVIDUAL STORES RATHER THAN TO WAREHOUSES PEOPLE CLOSE TO P&G SAY THAT ALTHOUGH NEARLY ALL OF ITS SALES VOLUME COMES FROM RETAILERS THAT BUY 500 OR MORE CASES OF PRODUCTS AT A TIME THE REMAINING CUSTOMERS WHICH ORDER MUCH SMALLER QUANTITIES REPRESENT FULLY HALF OF ALL ORDERS THAT P&G PROCESSES THE CHANGES COME AT A TIME WHEN P&G IS CUTTING 13000 JOBS AND CLOSING 30 PLANTS IN ORDER TO STAY PROFITABLE AMID FIERCE COMPETITION AMONG FOOD AND CONSUMERPRODUCTS BRANDS THE CHANGE WOULD PLACE A HUGE BURDEN ON SMALL AND MIDSIZE CUSTOMERS FOR WHICH LARGE SHIPMENTS ARE IMPRACTICAL TO MANAGE MANY SUCH RETAILERS LACKING WAREHOUSE SPACE WOULD BE FORCED TO BUY SMALLER QUANTITIES OF P&G PRODUCTS FROM WHOLESALERS AND PAY A PREMIUM FOR THEIR SERVICES OUR PEOPLE ARE LIVID BECAUSE THEY CAN'T MAKE THE NEW ORDER MINIMUMS SAID AN EXECUTIVE WITH A MIDSIZE DRUGSTORE CHAIN WHO DIDN'T WANT TO BE NAMED P&G THINKS EVERY CUSTOMER'S LIKE WALMART HE ADDED I'M ANGRY BUT I HAVE TO FIGURE OUT HOW TO WORK WITH THESE PEOPLE THEIR PRODUCTS SELL P&G ALSO HAS TOLD CUSTOMERS THAT IT MIGHT REDUCE THE VOLUME DISCOUNT THEY CURRENTLY RECEIVE ON TRUCKLOAD SHIPMENTS SOME RETAILERS SAID P&G HAS INDICATED IT MAY OFFSET THE LOWER DISCOUNT WITH OTHER INCENTIVES OTHER RETAILERS SAID THAT IF P&G DOESN'T DO THAT THEY MAY BE FORCED TO RAISE SHELF PRICES BECAUSE OF THE LOWER DISCOUNT THE NEW RULES COULD ALSO WIND UP HURTING P&G IN SOME STORES IF ANGRY RETAILERS RETALIATE FOR A LOT OF RETAILERS IT'LL BE A REASON NOT TO FAVOR P&G ON HOW THEY STOCK THEIR SHELVES AND ON MERCHANDISING AND PROMOTIONAL PROGRAMS SAID AN EXECUTIVE WITH A DIFFERENT DRUGSTORE CHAIN P&G'S MOVE ALSO COULD TRIGGER A SHIPPING PRICE WAR AMONG CONSUMERPRODUCTS MAKERS IF COMPETITORS LIKE ANGLODUTCH UNILEVER NV AND COLGATEPALMOLIVE CO OFFER A BROAD RANGE OF PRICE TIERS UNILEVER AND COLGATE WILL HAVE A DISTINCT ADVANTAGE OVER P&G IN THIS AREA AS WILL KIMBERLYCLARK CORP AND SCOTT PAPER CO THEY WON'T GET THE EFFICIENCIES P&G WILL HAVE BUT THEY'LL BE SELLING THEIR PRODUCT AT A MUCH HIGHER RATE BECAUSE OF THEIR FLEXIBILITY TO DESIGN THEIR SUPPLY SYSTEMS TO MATCH CUSTOMERS' NEEDS SAYS BURT FLICKINGER III OF THE AT KEARNEY CO CONSULTING FIRM HOWEVER COMPETITORS ALSO MAY BE PROMPTED BY P&G'S MOVE TO EVALUATE THEIR OWN DISTRIBUTION SYSTEMS FOR POSSIBLE SAVINGS MR FLICKINGER SAYS MR FLICKINGER BELIEVES P&G WHICH HAS ABOUT 30 BILLION IN ANNUAL SALES COULD SAVE CONSERVATIVELY ABOUT 30 MILLION A YEAR THROUGH THE CHANGES BEING DISCUSSED P&G IS MAKING A CONCESSION TO CUSTOMERS THAT WANT SOME FLEXIBILITY THE COMPANY WILL ALLOW THEM TO ORDER TRUCKLOADS CONTAINING A MIXTURE OF PRODUCTS RETAILERS SAY AS A RULE P&G ONLY SHIPS TRUCKLOADS CONTAINING IDENTICAL OR RELATED PRODUCTS SUCH AS CHARMIN TOILET TISSUE AND BOUNTY PAPER TOWELS CUSTOMERS WILL HOWEVER HAVE TO PAY A PREMIUM FOR TRUCKLOADS CONTAINING SEVERAL KINDS OF PRODUCTS SUCH AS TIDE DETERGENT AND DUNCAN HINES CAKE MIX P&G HAS TOLD CUSTOMERS IT BELIEVES IT WILL BE ABLE TO PROVIDE THIS SERVICE BY STREAMLINING THE LINKS BETWEEN ITS MANUFACTURING PLANTS AND REGIONAL DISTRIBUTION CENTERS HOWEVER P&G WILL PROVIDE AN INCENTIVE FOR CUSTOMERS TO ORDER SINGLEPRODUCT TRUCKLOADS DIRECTLY FROM P&G PLANTS BY GIVING THEM A SPECIAL DISCOUNT RETAILERS SAY 9311080050 931108 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 35 DAYS 308 36 TO 59 DAYS 333 60 TO 77 DAYS 335 78 TO 149 DAYS 337 150 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 340 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 251 ONE MONTH 262 TWO MONTHS 268 THREE MONTHS 279 SIX MONTHS 294 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 333 THREE MONTHS 333 SIX MONTHS BANKERS ACCEPTANCES 308 30 DAYS 334 60 DAYS 332 90 DAYS 332 120 DAYS 332 150 DAYS 332 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 644 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY NOVEMBER 11993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 706 60 DAYS 714 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 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 705 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 505 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311080048 931108 INTERNATIONAL WASHINGTON INSIGHT LYING LOW ON BOSNIA HELPS CLINTON NOW BUT INACTION MAY RETURN TO HAUNT HIM BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS LEARNING A LESSON THAT GEORGE BUSH HAD DOWN TO A T IF YOU STOP TALKING ABOUT A PROBLEM QUITE OFTEN PEOPLE STOP BLAMING YOU FOR IT THE PRESIDENT AND HIS ADVISERS HAVE BEEN PRACTICING IT WITH CONSIDERABLE SUCCESS ON BOSNIA IN RECENT WEEKS THE PROBLEM IS THAT THE SITUATION ON THE GROUND IN BOSNIA ISN'T MUCH BETTER THAN IT EVER WAS AND APPARENTLY NO CLOSER TO SOLUTION WITH THIS YEAR'S WINTER EXPECTED TO BE EVEN HARSHER THAN THE LAST MR CLINTON'S REPRIEVE FROM PUBLIC CRITICISM MAY BE ONLY TEMPORARY IN SARAJEVO WHERE MOST OF THE WORLD'S ATTENTION HAS BEEN FOCUSED LIFE FOR NOW IS MISERABLE BUT NOT DESPERATE CONVOYS CARRYING FOOD AND MEDICINE ARE GETTING THROUGH BUT SERBIAN FORCES CONTINUE TO BLOCK DELIVERIES OF HEATING FUEL AND BUILDING MATERIALS AN INCREASINGLY SERIOUS PROBLEM WITH WINTER SETTING IN UNDER THREAT OF NORTH ATLANTIC TREATY ORGANIZATION AIR STRIKES SERBIAN GUNNERS HAVE SLOWED BUT NOT HALTED THEIR SHELLING OF THE CAPITAL IN TWO SEPARATE ATTACKS LAST MONTH NEARLY 1600 SHELLS RAINED ON THE CITY WITH NO NATO RETALIATION THE SERBS KNOW EXACTLY WHAT THEY CAN GET AWAY WITH AND THEY KEEP GOING UP TO THAT BRINK SAYS A SENIOR US OFFICIAL FARTHER AWAY FROM THE TV CAMERAS IN CENTRAL BOSNIA CONDITIONS ARE MUCH WORSE FIERCE FIGHTING BETWEEN MUSLIM AND CROAT FORCES HAVE CUT CRITICAL SUPPLY ROUTES UNITED NATIONS RELIEF OFFICIALS ARE WARNING OF A MAJOR HUMANITARIAN DISASTER THIS WINTER FOR THE REGION'S 750000 RESIDENTS IF NEW ROUTES AREN'T FOUND SOON RELIEF OFFICIALS ARE ALSO WARNING OF IMPENDING DISASTER FOR THE MUSLIM ENCLAVES OF EASTERN BOSNIA WHERE THE SERBS ARE PRACTICING THE ART OF JUSTTOTHEBRINK STRANGULATION AT MEETINGS TODAY IN BRUSSELS EUROPEAN COMMUNITY FOREIGN MINISTERS ARE EXPECTED TO DISCUSS WAYS OF OPENING AND PROTECTING NEW SUPPLY ROUTES AND NATO WILL TAKE UP THE ISSUE LATER IN THE WEEK BUT UNLESS THE EUROPEANS AND THE US ARE MORE WILLING TO USE FORCE THAN THEY HAVE BEEN IN THE PAST THE DELIVERY PROBLEMS ARE UNLIKELY TO BE SOLVED THE MEETINGS MAY ALSO CONSIDER OFFERS FROM BOTH SERBIA AND THE BOSNIAN SERBS TO OPEN NEW SUPPLY ROUTES IN EXCHANGE FOR PAYMENTS IN FUEL NEGOTIATIONS TO SETTLE THE CONFLICT MEANWHILE HAVE STALLED EVER SINCE BOSNIA'S MUSLIMLED GOVERNMENT REJECTED A PLAN TO CARVE UP THEIR STATE ALONG ETHNIC LINES INTERNATIONAL MEDIATORS LORD DAVID OWEN AND THORWALD STOLTENBERG HAVE RAISED THE IDEA OF A BALKAN SUMMIT TO DEAL NOT JUST WITH BOSNIA BUT WITH ALL THE INTERCONNECTED ETHNIC AND TERRITORIAL DISPUTES OF THE FORMER YUGOSLAVIA BUT SO FAR ONLY THE BOSNIANS HAVE EXPRESSED ANY INTEREST IN A SUMMIT THE AMERICANS AND THE EUROPEANS US ALLIES ALSO SEEKING A LOWER PROFILE ON BOSNIA THESE DAYS HAVE YET TO COME UP WITH ANY IDEAS FOR RESTARTING THE PROCESS NO ONE'S GOING TO TRAVEL DOWN THESE PATHS UNLESS THEY'RE SURE THEY CAN PRODUCE RESULTS SAYS ONE EUROPEAN DIPLOMAT US OFFICIALS SAY THEY HAVEN'T FORGOTTEN BOSNIA OR THE IMPENDING WINTER THE ADMINISTRATION QUIETLY IS EXPLORING WHAT CARROTS AND STICKS IT CAN OFFER THE MUSLIMS AND CROATS TO STOP THEIR FIGHTING SO FAR TO LITTLE EFFECT PENTAGON PLANNERS ARE ALSO LOOKING AT WAYS OF INCREASING THE NUMBER OF RELIEF FLIGHTS INTO SARAJEVO AND WEIGHING A PLAN FOR REOPENING THE AIRPORT AT TUZLA THE US IS PARTICULARLY WORRIED THAT THE BOSNIAN GOVERNMENT IS OVERESTIMATING ITS ABILITY TO WITHSTAND ANOTHER WINTER A JANUARY NATO SUMMIT ALSO COULD INCREASE PRESSURE ON THE US AND ITS ALLIES TO DO MORE FOR BOSNIA THE LAST THING ANY OF US WANTS TO SEE IS PICTURES OF STARVING CHILDREN ON TV AT CHRISTMAS TIME OR EVEN WORSE JUST WHEN THE NATO SUMMIT IS STARTING TO REMIND US OF OUR FAILURE SAYS THE EUROPEAN DIPLOMAT THERE ARE SIGNS MEANWHILE THAT THE CLINTON ADMINISTRATION MAY BE DRAWING AN EVEN BROADER LESSON FROM ITS PAINFUL EXPERIENCES IN BOSNIA SOMALIA AND HAITI AN EVEN BETTER WAY TO AVOID BLAME IS NOT TO TAKE RESPONSIBILITY FOR PROBLEMS FROM THE START TESTIFYING BEFORE THE SENATE LAST WEEK SECRETARY OF STATE WARREN CHRISTOPHER IDENTIFIED SIX FOREIGNPOLICY PRIORITIES FOR THE US WHILE GIVING SHORT SHRIFT TO SUCH EARLIER PRIORITIES AS CONFLICT RESOLUTION AND HUMANITARIAN INTERVENTION PRESIDENT BUSH TOOK JUST THAT ATTITUDE TOWARD BOSNIA DISMISSING IT FROM THE START AS A EUROPEAN PROBLEM HAD HE TRIED TO SETTLE THE PROBLEM EARLIER THE SITUATION MIGHT NOT HAVE PROVED SO INTRACTABLE BY THE TIME MR CLINTON INHERITED IT AS A CANDIDATE MR CLINTON MADE THAT POINT OFTEN IT MAY BE A LESSON WORTH RECONSIDERING 9311080047 931108 CORRECTIONS & AMPLIFICATIONS IDAHO'S TWO REPUBLICAN SENATORS REMAIN UNDECIDED AND ARE LEANING AGAINST VOTING FOR THE NORTH AMERICAN FREE TRADE AGREEMENT THEIR OFFICES SAID DESPITE THEIR APPEARANCE THURSDAY AT A PRONAFTA NEWS CONFERENCE PRAISING A CONCESSION FOR SUGAR GROWERS IT WAS INCORRECTLY REPORTED IN AN ARTICLE FRIDAY THAT THEY HAD DECIDED TO SUPPORT THE TRADE PACT MARKET SHARE FIGURES FOR THE BIGGEST COFFEE BRANDS IN A CHART ACCOMPANYING THURSDAY'S MARKETSCAN ARTICLE WERE FROM 1992 DURING THE 13 WEEKS ENDED AUG 29 1993 PROCTER & GAMBLE CO'S FOLGERS BRAND ACCOUNTED FOR 281 OF COFFEE SALES IN SUPERMARKETS NOT INCLUDING INSTANT COFFEES PHILIP MORRIS COS' MAXWELL HOUSE ACCOUNTED FOR 239 PRIVATELABEL COFFEES 83 AND NESTLE SA'S HILLS BROS 66 9311080046 931108 MAKERS OF DISK DRIVES TO UNVEIL PRODUCTS FOR MOBILE COMPUTING A WALL STREET JOURNAL NEWS ROUNDUP THREE DISKDRIVE MAKERS ARE LAUNCHING TODAY A SERIES OF PRODUCTS AIMED AT THE EMERGING MOBILE COMPUTING MARKET MAXTOR CORP OF SAN JOSE CALIF IS UNVEILING A MOBILEMAX FAMILY OF MASSSTORAGE PRODUCTS THAT ARE COMPATIBLE WITH THE PCMCIA SLOTS ON PORTABLE COMPUTERS THESE SLOTS ARE USED TO ATTACH SUCH ACCESSORIES AS MODEMS HARD DISKS AND FACSIMILES ONE PRODUCT WILL CONSIST OF A HIGHCAPACITY 18INCH 105MEGABYTE HARD DRIVE QUANTUM CORP MILPITAS CALIF SAID AMONG THE PRODUCTS TO BE INTRODUCED IS THE QUANTUM DAYTONA 25INCH DRIVE WITH HIGH PERFORMANCE AND CAPACITY FOR NOTEBOOK PORTABLE COMPUTERS AND THE SMALLER SUBNOTEBOOK COMPUTERS AND SYQUEST TECHNOLOGY INC OF FREMONT CALIF SAID IT IS LAUNCHING A 18INCH CARD DRIVE THAT WILL ACCOMMODATE A REMOVABLE HARDDISK CARTRIDGE IN THE PCMCIA SLOT OF A PORTABLE COMPUTER 9311080045 931108 THE ASSAULT ON JUVENILE CRIME BY RITA KRAMER AS THE HOUSE AND SENATE CONTINUE HAMMERING OUT THE DETAILS OF A FEDERAL CRIME BILL OUR REPRESENTATIVES IN WASHINGTON WOULD BE WELLADVISED TO PAY ATTENTION TO WHAT IS BEING SAID BACK HOME ABOUT THE CRIME PROBLEM THROUGHOUT THE COUNTRY DISTRICT ATTORNEYS ARE NAMING JUVENILE CRIME AS THE NUMBERONE CRIME PROBLEM AND REFORM OF THE JUVENILE JUSTICE SYSTEM AS THEIR TOP PRIORITY ACCORDING TO THE FBI'S UNIFORM CRIME REPORTS OF THOSE ARRESTED BETWEEN 1987 AND 1992 FOR THE MOST VIOLENT CRIMES 29 WERE UNDER THE AGE OF 18 A STUDY RELEASED BY NORTHEASTERN UNIVERSITY'S COLLEGE OF CRIMINAL JUSTICE LAST YEAR REPORTED THAT BETWEEN 1985 AND 1991 THE NUMBER OF 17YEAROLDS ARRESTED FOR MURDER INCREASED BY 121 THE NUMBER OF 16YEAROLDS BY 158 AND THE NUMBER OF 15YEAROLDS BY 217 MOST SHOCKING OF ALL THE NUMBER OF ARRESTS OF BOYS 12 AND UNDER DOUBLED THE JUVENILE JUSTICE SYSTEM BASED ON THE 1950S PROFILE OF THE DELINQUENT AND CODIFIED IN THE EARLY 1960S IS STILL BASED ON THE IDEA THAT BAD BOYS DESERVE ANOTHER CHANCE AND CAN BE REFORMED BY THE EFFORTS OF PSYCHOLOGISTS AND SOCIAL WORKERS IT KEEPS THE NAMES AND RECORDS OF JUVENILE OFFENDERS CONFIDENTIAL WHILE PROVIDING JUVENILES WITH ATTORNEYS WHOSE JOB IT IS TO HELP THEM BEAT THE RAP THE RESULT IS A REVOLVINGDOOR PATTERN THAT REPEATEDLY SENDS DANGEROUS YOUTHS BACK TO THE STREETS THE FOUR TEENAGERS CHARGED WITH THE MURDER OF A BRITISH TOURIST IN FLORIDA IN SEPTEMBER WERE NO STRANGERS TO THE COURT THEY ALL HAD BEEN ARRESTED BEFORE THE 13YEAROLD IN FACT HAD BEEN ARRESTED 15 TIMES ON MORE THAN 50 CHARGES AT THE TIME OF HIS FIRST ARREST HE WAS SEVEN YEARS OLD IT IS CLEAR THAT THE PRESENT SYSTEM OF JUVENILE JUSTICE HAS FAILED EITHER TO DETER VIOLENT CRIME BY THE YOUNG OR TO REHABILITATE YOUNG CRIMINALS AND SO PUBLIC PROSECUTORS HAVE BEEN CONSIDERING WAYS TO CHANGE THINGS FIRST ON MANY OF THEIR AGENDAS IS TRANSFERRING VIOLENT JUVENILE RECIDIVISTS TO THE ADULT SYSTEM AND GETTING RID OF THE SECRECY IN JUVENILE COURT THAT PREVENTS THE PUBLIC FROM KNOWING HOW OFTEN A JUVENILE OFFENDER COMMITS A CRIME GUS SANDSTROM DISTRICT ATTORNEY IN PUEBLO COLO AND CHAIRMAN OF THE JUVENILE COMMITTEE OF THE NATIONAL DISTRICT ATTORNEYS ASSOCIATION PREDICTS THAT WITHIN THREE YEARS EVERY STATE WILL BE REEXAMINING ITS JUVENILE POLICIES AND PROGRAMS FOR THE FIRST TIME IN YEARS HE SAYS PROSECUTORS ARE BEING LISTENED TO THERE IS A GROWING PUBLIC DEMAND TO KNOW WHO'S DOING ALL THIS TO DO SOMETHING ABOUT THE VICTIMIZERS AND THE MEDIA IS CLAIMING THE RIGHT TO KNOW CONFIDENTIALITY IS GOING OUT THE WINDOW THE TREND IS TOWARD LOOKING AT CONSEQUENCES AS OPPOSED TO TREATMENT COLORADO HAS ALREADY PASSED LEGISLATION ALLOWING THE RELEASE OF THE NAMES OF JUVENILES CHARGED WITH VIOLENT OFFENSES OR WITH ILLEGAL POSSESSION OF A HANDGUN OTHER STATES ARE FOLLOWING SUIT EFFORTS ARE UNDER WAY TO REWRITE THE JUVENILE JUSTICE CODES IN MINNESOTA MICHIGAN FLORIDA UTAH OREGON AND KANSAS AND PROSECUTORS ARE TAKING A HARD LOOK AT THE LAWS IN PENNSYLVANIA SOUTH DAKOTA HAWAII AND TEXAS ANOTHER PROBLEM IS THE SLOWNESS OF THE CRIMINAL JUSTICE SYSTEM TOO MANY TEENAGERS WAIT WEEKS OR EVEN MONTHS FOR A COURT APPEARANCE BY THE TIME THEY COME TO COURT THE INCIDENT THAT PROMPTED THEIR ARREST HAS BECOME A VAGUE MEMORY IN MANY CASES THEY'VE ALREADY COMMITTED OTHER CRIMES AND THE CASE IS OFTEN DISMISSED LEAVING THE JUVENILE WITH NO SENSE OF ANY CONSEQUENCES FOLLOWING FROM HIS BEHAVIOR THE SYSTEM IN NEW YORK CITY IS PARTICULARLY SLOW WHICH MIGHT EXPLAIN WHY ALMOST A QUARTER OF THE NATION'S ARRESTS OF YOUTHS UNDER 16 FOR ROBBERY GO THROUGH NEW YORK'S FAMILY COURT PETER REINHARZ WHO HEADS THE FAMILY COURT DIVISION OF NEW YORK CITY'S LAW DEPARTMENT SAYS THE STATE ASSEMBLY CONTINUES TO REJECT PROPOSALS TO DO AWAY WITH THE RULES WHEREBY THE NAMES AND THE RECORDS OF ANYONE IN FAMILY COURT UNDER 16 ARE CONFIDENTIAL INFORMATION THERE IS NO WAY OF TELLING HOW MANY TIMES A KID CARRYING A LOADED WEAPON HAS BEEN PICKED UP BEFORE ON THE SAME CHARGE AND THE KIDS ALL KNOW IT NEW YORK APPEARS TO BE ONE OF THE LAST HOLDOUTS AS OTHER STATES PRESS FOR CHANGE IN A JUVENILE JUSTICE SYSTEM THAT DOESN'T WORK ANOTHER FOCUS OF REFORM IS EARLY INTERVENTION WHICH BECOMES POSSIBLE WHEN VIOLENT JUVENILES ARE PROSECUTED AS ADULTS ELIMINATING THE SECRECY SURROUNDING JUVENILE COURT DELIBERATIONS MAKES IT POSSIBLE TO TAKE INTO ACCOUNT A HISTORY OF VIOLENT CRIMINAL ACTS THERE SHOULD BE MORE EMPHASIS ON INTERVENTION AND PREVENTION THE EARLIER THE BETTER WHERE THERE IS A CLEAR PATTERN SAYS MICHAEL TRANBARGER SPECIAL ASSISTANT TO THE LOS ANGELES DISTRICT ATTORNEY HE POINTS TO THE ORANGE COUNTY CALIF PROBATION DEPARTMENT WHICH HAS COME UP WITH A SOLUTION THAT IS BECOMING A MODEL FOR OTHERS AROUND THE COUNTRY ORANGE COUNTY'S SEVENYEAR STUDY OF THOUSANDS OF YOUTHS IN JUVENILE INSTITUTIONS OR ON PROBATION SHOWED THAT ABOUT 70 OF FIRSTTIME OFFENDERS WERE NEVER ARRESTED AGAIN AROUND 8 BECAME CHRONIC OFFENDERS RESPONSIBLE FOR MORE THAN HALF OF THE REPEAT APPEARANCES IN THE JUVENILE SYSTEM ANALYSIS OF THAT 8 REVEALED TRAITS THAT MAKE IT POSSIBLE TO SPOT A POTENTIAL CAREER CRIMINAL THE FIRST TIME HE IS CHARGED THESE TEENAGERS TYPICALLY 15 OR YOUNGER AT THE TIME OF THEIR FIRST OFFENSE HAD PROBLEMS AT SCHOOL FAILURE TRUANCY SUSPENSIONS OR EXPULSIONS PROBLEMS AT HOME PARENTAL DEATH OR DIVORCE FAMILY CONFLICT CHILD ABUSE OR NEGLECT CRIMINAL RELATIVES A HISTORY OF DRUG OR ALCOHOL ABUSE OR A PATTERN OF DELINQUENCY HISTORY OF RUNNING AWAY STEALING GANG MEMBERSHIP IDENTIFYING FIRSTTIME OFFENDERS WITH THESE WARNING SIGNS MAKES IT POSSIBLE TO FOCUS EFFORTS ON TURNING THEM AROUND BEFORE IT'S TOO LATE SAYS MR TRANBARGER WE'VE BEEN TAKING A HARD LOOK AT INTERVENTION AND PREVENTION PROGRAMS FOR THAT SMALL GROUP OF RECIDIVISTS WHO COMMIT THE MOST VIOLENT CRIMES SO THAT PROSECUTORS AND SOCIAL SERVICE AGENCIES CAN CONCENTRATE THEIR EFFORTS ON THE MOST ATRISK IT'S A FORM OF TRIAGE PROGRAMS BASED ON EARLY INTERVENTION ARE UNDER CONSIDERATION IN MANY STATES DAVID QUANTZ CHIEF COUNSEL FOR THE DIVISION OF CHILD ADVOCACY OF THE PIMA COUNTY ATTORNEY'S OFFICE IN TUCSON ARIZ SAYS INSTEAD OF A JUDGE GUESSING WHETHER A KID WILL BE A REPEAT OFFENDER OR NOT WE ARE TRYING TO CREATE LEGISLATION THAT WILL PROVIDE AN OBJECTIVE BASIS FOR AUTOMATIC TRANSFER OF VIOLENT RECIDIVISTS TO THE ADULT CRIMINAL SYSTEM THERE WOULD BE CLEAR CRITERIA FOR SENTENCING BASED ON THE TYPE OF OFFENSE THE AGE OF THE OFFENDER AND THE NUMBER OF OFFENSES HE'S COMMITTED THOSE TRANSFERRED TO THE ADULT COURT WOULD BE GIVEN THE DUE PROCESS PROTECTIONS OF A JURY TRIAL IF THE VERDICT IS GUILTY THE JUDGE WILL HAVE THE OPTIONS OF SUSPENDING THE SENTENCE PUTTING THE JUVENILE ON PROBATION OR REMANDING HIM TO A YOUTH CENTER IF HE GETS INTO TROUBLE AGAIN THE JUDGE CAN REVOKE THE EARLIER DECISION AND SENTENCE HIM AS AN ADULT BOTH FOR THE EARLIER CRIME AND THE NEW ONE THAT MEANS PRISON IN WHICH HE WOULD BE SEPARATED HOWEVER FROM THE ADULT PRISONERS WE WOULD NO LONGER HAVE TO GUESS WHICH KIDS WILL TURN OUT TO BE CHRONIC AND VIOLENT OFFENDERS SAYS MR QUANTZ IT WILL BE DECIDED BY THE KID'S OWN BEHAVIOR NOT ONLY WILL THE NEW RULES ATTEMPT TO IDENTIFY THE POTENTIALLY DANGEROUS AT AN EARLY STAGE IN THEIR CRIMINAL ACTIVITIES THEY WILL BE AIMED AT A YOUNGER AND YOUNGER GROUP THE EIGHT NINE AND 10YEAROLDS WHOM COLORADO'S MR SANDSTROM CALLS THE FASTEST GROWING SEGMENT OF KIDS COMMITTING CRIMES ON THE BASIS OF RECENT STUDIES OF URBAN VIOLENCE BY JUVENILES THE OPTIMAL AGE FOR INTERVENTION HAS BEEN REVISED DOWNWARD TO AGE EIGHT NOT SURPRISINGLY BURGLARY HAS REPLACED TRUANCY AS THE NUMBERONE INDICATOR OF FUTURE CRIMINAL ACTIVITY IN CHICAGO THERE IS AUTOMATIC TRANSFER TO THE ADULT SYSTEM OF 15 AND 16YEAROLDS CHARGED WITH MURDER ARMED ROBBERY WITH A GUN AGGRAVATED CRIMINAL SEXUAL ASSAULT POSSESSION OF DRUGS ON SCHOOL GROUNDS OR SELLING DRUGS WITHIN 1000 FEET OF A SCHOOL BUT ASSISTANT STATE'S ATTORNEY CHERYL D CESARIO FAMILY ISSUES COORDINATOR FOR COOK COUNTY ILL SAYS THAT EFFORTS TO TRANSFER 13 AND 14YEAROLD SERIOUS OFFENDERS TO THE ADULT SYSTEM STILL MEET WITH RESISTANCE ON THE PART OF JUVENILECOURT ADVOCATES SINCE THE 1967 GAULT DECISION PROVIDED EVERY JUVENILE WITH AN ATTORNEY THE IDEA HAS BEEN TO BEAT THE SYSTEM KIDS VIEW IT AS A GAME IT'S TOO EARLY TO TELL WHETHER EFFORTS TO DIVERT THE VERY YOUNGEST OF THE YOUNG TROUBLEMAKERS BEFORE THEY BECOME HABITUAL CRIMINALS WILL PROVE EFFECTIVE BUT MANDATORY SENTENCING MIGHT SERVE TO SEND THE MESSAGE TO REPEAT OFFENDERS THAT THEY'LL NO LONGER GET A FREE RIDE FROM A SYSTEM WITHOUT SERIOUS SANCTIONS IT MIGHT EVEN TURN SOME YOUNG CRIMINALS AROUND AT THE VERY LEAST IT SHOULD HELP MAKE OUR CITIES SAFER BY TAKING SOME VIOLENT OFFENDERS OFF THE STREETS MS KRAMER IS THE AUTHOR OF AT A TENDER AGE VIOLENT YOUTH AND JUVENILE JUSTICE HENRY HOLT 1988 9311080044 931108 NEW VIACOM BID FOR PARAMOUNT PRESSURES RIVAL SWEETENED OFFER HEIGHTENS NEED FOR QVC TO FINISH TALKS WITH BELLSOUTH BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK VIACOM INC'S SWEETENED 104 BILLION BID FOR PARAMOUNT COMMUNICATIONS INC INCREASES THE PRESSURE ON QVC NETWORK INC TO COMPLETE TALKS WITH BELLSOUTH CORP ABOUT AN INVESTMENT THAT COULD HELP QVC RAISE ITS RIVAL OFFER THE SURPRISING MOVE ALSO CAME AS QVC WAS SCRAMBLING TO ANSWER ANTITRUST QUESTIONS FROM REGULATORS ABOUT LIBERTY MEDIA INC A CABLETELEVISION COMPANY THAT IS A BIG AND CONTROVERSIAL QVC SHAREHOLDER ON SATURDAY VIACOM THE PARENT OF MTV SHOWTIME AND OTHER CABLE CHANNELS INCREASED ITS CASHANDSTOCK TENDER OFFER 5 TO AN AVERAGE 8372 FOR EACH SHARE OF PARAMOUNT FROM 7872 BASED ON FRIDAY'S CLOSING PRICES MEANWHILE BARRY DILLER QVC CHAIRMAN NEGOTIATED TO OBTAIN A 15 BILLION INVESTMENT FROM BELLSOUTH THAT COULD BE USED TO BOLSTER HIS BID FOR PARAMOUNT BUT THE TALKS ADJOURNED LATE YESTERDAY WITH QVC AND BELLSOUTH DISAGREEING OVER HOW MUCH POWER THE REGIONAL TELEPHONE COMPANY WOULD EXERCISE OVER QVC WALL STREET TRADERS AND ANALYSTS CONTEND THAT QVC MUST INCREASE ITS OFFER TO AT LEAST 90 A SHARE OR 112 BILLION TO HAVE ANY CHANCE OF OVERTAKING VIACOM WHICH HAS A TWODAY HEAD START IN COMPLETING ITS TENDER OFFER AS WELL AS THE SUPPORT OF THE PARAMOUNT BOARD BOTH VIACOM AND QVC WANT PARAMOUNT ONE OF THE FEW AVAILABLE ENTERTAINMENT AND MEDIA CONCERNS BECAUSE THEY SEE IT AS PIVOTAL TO PUSHING THEM INTO THE INTERACTIVE MULTIMEDIA AGE VIACOM HAS PARAMOUNT'S APPROVAL FOR ITS OFFER WHILE QVC HAS MOUNTED A HOSTILE BID BUT AS THE BATTLE HAS ESCALATED WITH EACH SIDE LINING UP INVESTORS WITH DEEP POCKETS FACTORS SUCH AS TIMING OF OFFERS AND WINNING ANTITRUST CLEARANCE HAVE BECOME MORE CRITICAL UNDER THE REVISED TERMS VIACOM WILL NOW PAY 85 IN CASH UP FROM 80 FOR 51 OF PARAMOUNT AND WILL SWAP VIACOM SECURITIES VALUED AT 8252 AT FRIDAY'S PRICES FOR THE REST BEFORE THE INCREASE VIACOM'S SECOND IN TWO WEEKS BOTH IT AND QVC HAD MATCHING TWOSTEP TENDER OFFERS VALUED AT ROUGHLY 78 A SHARE OR 97 BILLION IN CASH AND SECURITIES AT FRIDAY'S CLOSING PRICES BECAUSE BOTH OFFERS INVOLVE STOCK THEIR VALUE CHANGES DAILY QVC HAD NO OFFICIAL REACTION TO THE LATEST TWIST IN THE HEATED TWOMONTHOLD CONTEST FOR PARAMOUNT INDEED THE MOVE SURPRISED THE QVC CAMP WHICH WAS PREOCCUPIED THROUGH MOST OF THE WEEKEND IN TANGLED TALKS WITH BELLSOUTH LIBERTY AND ANTITRUST REGULATORS AT THE FEDERAL TRADE COMMISSION WHO ARE CONCERNED ABOUT LIBERTY'S ROLE THE TALKS FOCUSED ON HAMMERING OUT SEVERAL COMPLEX PROPOSALS FOR BELLSOUTH TO JOIN IN QVC'S BID AND FOR LIBERTY'S ROLE TO SHRINK LIBERTY IS CONTROLLED BY JOHN C MALONE CHAIRMAN OF TELECOMMUNICATIONS INC AS THE NATION'S LARGEST CABLETV OPERATOR TELECOMMUNICATIONS HAS REPEATEDLY COME UNDER CRITICISM FOR ALLEGEDLY ENGAGING IN ANTICOMPETITIVE PRACTICES VIACOM HAS SOUGHT TO DERAIL QVC'S BID IN PART THROUGH A LAWSUIT ACCUSING TELECOMMUNICATIONS LIBERTY AND MR MALONE OF ATTEMPTING TO MONOPOLIZE THE CABLE INDUSTRY ACCORDING TO PEOPLE CLOSE TO THE DEVELOPMENTS THE FTC IS INSISTING THAT LIBERTY'S INVOLVEMENT BE SUBSTANTIALLY REDUCED IN QVC IF THE HOMESHOPPING CONCERN WANTS FTC CLEARANCE TO ACQUIRE PARAMOUNT UNDER ONE QVC PROPOSAL BEING WEIGHED BY THE AGENCY BELLSOUTH WOULD INVEST 1 BILLION IN NEW QVC COMMON STOCK AND ASSUME LIBERTY'S OBLIGATION TO INVEST AN ADDITIONAL 500 MILLION IN QVC THE BELL PHONE CONCERN WOULD ASSUME LIBERTY'S VOTING RIGHTS IN QVC'S THREEWAY CONTROL STRUCTURE UNDER WHICH LIBERTY MR DILLER AND CABLE CONCERN COMCAST CORP SHARE VOTING CONTROL OF QVC THERE ARE TWO OPTIONS FOR HANDLING LIBERTY'S EXISTING 22 EQUITY STAKE IN QVC ONE WOULD HAVE IT CONVERT THE HOLDING TO NONVOTING PREFERRED STOCK IF THE FTC INSISTS THAT LIBERTY DIVEST ITSELF OF ITS STAKE HOWEVER BELLSOUTH WOULD ACQUIRE IT BOTH BELLSOUTH'S INVESTMENT AND THE CHANGES IN THE LIBERTY MEDIA'S ROLE WOULD BE CONTINGENT ON QVC ACQUIRING PARAMOUNT ON FRIDAY QVC MOVED QUICKLY TO ANSWER ONE OF THE FTC'S CONCERNS IT SCUTTLED A PROPOSAL TO COMBINE WITH HOME SHOPPING NETWORK A HOMESHOPPING CONCERN ALSO CONTROLLED BY LIBERTY MEDIA BUT AS OF LAST NIGHT THE FTC HADN'T MADE A DECISION MOREOVER PEOPLE CLOSE TO THE QVCBELLSOUTH TALKS SAID THE TWO HADN'T RESOLVED THE ISSUE OF BELLSOUTH'S DEGREE OF CONTROL OVER QVC ONE PERSON CLOSE TO THE TALKS SAID BELLSOUTH WAS INSISTING ON VETO POWER OVER QVC'S DECISIONS WHILE OTHERS SAID BELLSOUTH WANTS A ROLE GREATER THAN THAT OF LIBERTY WHICH HAS HELD ONLY AN EFFECTIVE ONETHIRD VOICE IN QVC DECISIONS BUT STILL ANOTHER PERSON IN THE TALKS CATEGORICALLY DENIED THAT BELLSOUTH WAS HOLDING OUT FOR A STRONGER VOICE THE RAPIDFIRE MOVES AND COMPLEX CHESSLIKE STRATEGY WITH QVC'S MR DILLER ATTEMPTING TO JUGGLE HIS VARIOUS INVESTORS AND STILL COMPETE ECONOMICALLY WITH SUMNER REDSTONE CHAIRMAN OF VIACOM LEFT SOME TRADERS SHAKING THEIR HEADS THIS IS A WILD RACE TO THE FINISH SAID ONE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE PARAMOUNT SHARES CLOSED AT 8025 UP 150 VIACOM CLASS A SHARES CLOSED AT 5750 UNCHANGED IN AMERICAN STOCK EXCHANGE TRADING ITS CLASS B SHARES CLOSED AT 5150 DOWN 50 CENTS ON THE NASDAQ STOCK MARKET QVC SHARES CLOSED AT 5325 DOWN 75 CENTS VIACOM TIMED ITS INCREASE TO PRESERVE A TWODAY TIMING ADVANTAGE THAT IT HAS OVER QVC IN THE RIVAL TENDER OFFERS CURRENTLY VIACOM'S OFFER IS SET TO EXPIRE NOV 22 AND QVC'S ON NOV 24 IF VIACOM HAD WAITED UNTIL QVC RAISED ITS BID BEFORE RESPONDING WITH A HIGHER BID IT COULD HAVE LOST THAT TIMING ADVANTAGE BECAUSE BIDDERS MUST LEAVE THEIR OFFERS OPEN FOR 10 BUSINESS DAYS AFTER MAKING ANY PRICE CHANGES PEOPLE CLOSE TO QVC HOWEVER COUNTER THAT THE ONLY TIMING ISSUE IS ITS COURT DATE IN DELAWARE ON NOV 16 THE COMPANY HAS SUED PARAMOUNT AND VIACOM THERE TO ELIMINATE AN ADVANTAGE THAT VIACOM HAS HELD AS THE FAVORITE OF THE PARAMOUNT BOARD THE DIRECTORS HAVE CONSENTED TO PARAMOUNT PAYING VIACOM A BREAKUP FEE OF 100 MILLION IF ANOTHER BIDDER PREVAILS AND TO GRANTING IT AN OPTION TO ACQUIRE 24 MILLION NEW PARAMOUNT SHARES THAT A RIVAL WOULD HAVE TO ACQUIRE BUT ANALYSTS BELIEVE THAT QVC'S CHANCES OF HAVING THE COURT LEVEL THE PLAYING FIELD WILL BE BETTER ONLY IF ITS BID IS MARKEDLY SUPERIOR TO VIACOM'S SEPARATELY PARAMOUNT IS EXPECTED TO BE ONE OF SEVERAL BIDDERS FOR MACMILLAN INC THE PUBLISHING HOUSE OWNED BY MAXWELL COMMUNICATIONS VIACOM ALREADY HAS APPROVED PARAMOUNT'S BID WHICH IF SUCCESSFUL WOULD ADD 500 MILLION OR MORE TO THE PURCHASE PRICE OF PARAMOUNT ITSELF LESLIE CAULEY CONTRIBUTED TO THIS ARTICLE 9311080043 931108 TOO GOOD TO REFUSE BROWNINGFERRIS BUCKS MOB WARILY HAULS NEW YORK CITY TRASH HIGH CARTING PRICES ATTRACT WASTE GIANT BUT FEARS MAY COST IT CUSTOMERS A DOG'S GRUESOME MESSAGE BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF BROWNINGFERRIS INDUSTRIES INC THOUGHT BREAKING INTO THE TRASHHAULING BUSINESS HERE WOULD BE EASY THAT NOTION VANISHED IN FEBRUARY DUMPED ON THE SUBURBAN DOORSTEP OF DAVID A KIRSCHTEL A COMPANY EXECUTIVE WAS A DOG'S SEVERED HEAD IN ITS MOUTH WAS A NOTE WELCOME TO NEW YORK THE GRISLY MESSAGE HELPS EXPLAIN WHY NATIONAL WASTE COMPANIES HAVE LONG SHIED AWAY FROM THE CITY'S 1 BILLION TRASHREMOVAL BUSINESS SATISFYING THEMSELVES WITH GROWTH ELSEWHERE ORGANIZED CRIME HAS FOR DECADES HELD SWAY OVER THE COMMERCIAL TRASHHAULING BUSINESS HERE KEEPING OUTSIDERS OUT AND HOLDING CUSTOMERS FROM THE SMALLEST DELICATESSENS TO THE TALLEST SKYSCRAPERS CAPTIVE TO THE HIGHEST PRICES IN THE US MANY OFFICES HOTELS FACTORIES AND RESTAURANTS HAVE HAD THE SAME HAULER FOR 40 YEARS OR MORE AND SELDOM IF EVER GET A SALES CALL FROM A RIVAL COMPANY BUT NOW BROWNINGFERRIS IS BREAKING THE NEW YORK TABOO A LOOK AT ITS YEAROLD EFFORT SHOWS THE WASTE GIANT ACCUSTOMED TO AGGRESSIVELY SEIZING BUSINESS IN OTHER MARKETS STEPPING GINGERLY AMONG THE HUNDREDS OF SMALL HAULERS THAT DOMINATE THE BUSINESS HERE THE CITY'S SANITATION DEPARTMENT COLLECTS RESIDENTIAL REFUSE THE HOUSTONBASED COMPANY OPENED A MIDTOWN MANHATTAN SALES OFFICE BUT HIRED A LONG ISLAND HAULER FOR THE ACTUAL COLLECTION IN PART BECAUSE IT FEARED THAT DISPOSAL SITES WOULD TURN AWAY BROWNINGFERRIS TRUCKS IT HAS SNATCHED A HANDFUL OF ACCOUNTS FROM LOCAL HAULERS BUT AT TIMES SENDS ARMED GUARDS ALONG ON THE PICKUPS SOME POTENTIAL CUSTOMERS REMAIN FEARFUL OF VIOLENCE AND BROWNINGFERRIS HAD TO CONVINCE AT LEAST ONE NERVOUS NEW CUSTOMER THAT TRASH COLLECTION WOULDN'T BE INTERRUPTED BY GUNPLAY BEYOND THE DOG'SHEAD INCIDENT THOUGH BROWNINGFERRIS HAS BEEN CONFRONTED BY ONLY CONVENTIONAL BUSINESS RESPONSES LOCAL HAULERS CUTTING PRICE AND IMPROVING SERVICE TO HANG ONTO CUSTOMERS AND A CAMPAIGN AIMED AT MAKING THE BIG OUTOFTOWNER THE VILLAIN IN THIS DRAMA THE MAFIA REMAINS A PRESENCE NEW YORK HAULERS THOUGH ONLY A FEW HAVE BEEN IDENTIFIED BY LAWENFORCEMENT OFFICIALS AS MAFIA MEMBERS OR ASSOCIATES ALLEGEDLY LET MOBSTERS ENFORCE A CARTEL SYSTEM IN WHICH HAULERS REFRAIN FROM TAKING ONE ANOTHER'S CUSTOMERS IN ADDITION BIDS ON MAJOR CONTRACTS ARE SAID TO BE FIXED BOTH PRACTICES KEEP PRICES AND PROFITS HIGH VIOLENCE HAS BEEN USED TO PROTECT THE CARTEL THE ALLEGED MAFIA BOSS OF LONG ISLAND'S TRASH COLLECTION SALVATORE AVELLINO GOES TO TRIAL NEXT FEBRUARY IN FEDERAL COURT IN BROOKLYN ON CHARGES HE ORDERED THE MURDER OF TWO CARTERS WHO WOULDN'T COOPERATE IN PRICE FIXING JAMES FAILLA IDENTIFIED BY LAWENFORCEMENT OFFICIALS AS MANHATTAN'S MAFIA TRASH CHIEF FACES TRIAL IN THE SAME COURT NEXT APRIL ON CHARGES OF RACKETEERING AND ARRANGING THE MURDER OF A MOBSTER WHO WAS ABOUT TO TESTIFY ABOUT ORGANIZEDCRIME ACTIVITIES MOB TIES HAVE ALSO MADE SOME HAULERS BRAZEN IN THEIR WILLINGNESS TO POLLUTE FOR PROFIT ANTHONY VULPIS AND ANGELO PACCIONE WERE EACH SENTENCED LAST YEAR IN FEDERAL COURT IN MANHATTAN TO 12 YEARS IN PRISON FOR AMONG OTHER THINGS RUNNING AN ILLEGAL DUMP IN THE BOROUGH OF STATEN ISLAND IN JUST FOUR MONTHS THE OPERATION BECAME A 15 MILLION CLEANUP SITE THE FEDERAL GOVERNMENT SAYS BROTHERS ROBERT A AND LOUIS J MONGELLI EACH SENTENCED IN MANHATTAN FEDERAL COURT TO MORE THAN FOUR YEARS IN PRISON EARLIER THIS YEAR FOR RACKETEERING AND OTHER CHARGES TRIED TO COVER UP ILLEGAL DUMPING ON A NEW YORK FARM WITH A LAYER OF MANURE LAWENFORCEMENT OFFICIALS THOUGH SUCCESSFUL AT PROSECUTING ROGUE HAULERS AND THEIR MOB PATRONS HAVE CONCLUDED THAT CONVICTIONS ALONE WON'T CLEAN UP THE INDUSTRY PROSECUTION OF INDIVIDUALS ISN'T GOING TO AMELIORATE THE INFLUENCE OF THE MOB SAYS RONALD GOLDSTOCK DIRECTOR OF THE NEW YORK STATE ORGANIZED CRIME TASK FORCE POSITIONS LEFT VACANT BY CONVICTIONS ARE FILLED AND AS THEIR INTERESTS ARE THREATENED THEY'RE LIKELY TO BE MORE VIOLENT TO FORCE COMPETITION NEW YORK OFFICIALS WHO HAD BEEN TRYING TO OPEN THE MARKET DECIDED IN THE LATE 1980S TO INVITE THE LARGEST WASTE COMPANIES INTO THE CITY NO 1 WASTE MANAGEMENT INC NO 2 BROWNINGFERRIS AND NO 3 LAIDLAW INC HAVE ROLLED INTO VIRTUALLY EVERY OTHER MAJOR US MARKET GOBBLING UP HUNDREDS OF SMALLER HAULERS AND AMASSING A COMBINED FLEET OF 28000 TRASH TRUCKS AND 25 MILLION DUMPSTERS THE WASTE GIANTS HAVE BROUGHT ECONOMIES OF SCALE COMPUTERIZED ROUTE DESIGN AND BILLIONDOLLAR BALANCE SHEETS TO A BUSINESS THAT 25 YEARS AGO WAS A MOMANDPOP ENTERPRISE BUT INITIAL EFFORTS TO ATTRACT THE NATIONAL HAULERS TO NEW YORK FAILED THE FEDERAL GOVERNMENT OFFERED TO SELL THE FORMER HAULING COMPANIES OF MESSRS VULPIS AND PACCIONE SEIZED TO SATISFY A 22 MILLION JUDGMENT AGAINST THEM BUT FOUND NO TAKERS WASTE MANAGEMENT A UNIT OF WMX TECHNOLOGIES INC OAK BROOK ILL SAYS IT HAS ZERO HAULING BUSINESS IN NEW YORK CITY'S FIVE BOROUGHS AND ZERO COMMENT ON WHY LAIDLAW ALSO STAYED OUT ITS TOP TRASH EXECUTIVE KENNETH L LYONS WONDERS WHETHER AN OUTSIDER COULD MAKE IT IN THE CITY BROWNINGFERRIS WHICH HAS ANNUAL REVENUE OF MORE THAN 3 BILLION ALSO PASSED ON A PURCHASE ITS NORMAL METHOD FOR ENTERING A MARKET THE COMPANY LOOKED AT NEW YORK ACQUISITIONS AS EARLY AS 1971 WE DECIDED REAL QUICKLY IT WASN'T A MARKET WE WANTED TO BE IN SAYS TOM FATJO FOUNDER AND FORMER CHAIRMAN BUT NEW YORK RECENTLY HAS BECOME HARD TO IGNORE SAYS WILLIAM D RUCKELSHAUS BROWNINGFERRIS'S CURRENT CHAIRMAN AND A FORMER HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY GROWTH ELSEWHERE SLOWED BY 1991 WITH FEWER EASY ACQUISITIONS RECESSION ATE INTO TRASH VOLUMES AND LED TO PRICE CUTTING IN NEW YORK HOWEVER THE CARTEL KEPT PRICES HIGH AND A RECYCLING LAW THAT TOOK EFFECT LAST MONTH COULD GIVE BIG ADVANTAGES TO WELLCAPITALIZED HAULERS NEW YORK'S COMMERCIAL TRASH MARKET IS A CRAZYQUILT SYSTEM OF COLLECTION ROUTES WHERE HAULERS STILL CALL THEMSELVES CARTERS IN ONE WEST SIDE AREA BETWEEN 36TH AND 48TH STREETS AND FIFTH AVENUE AND THE HUDSON RIVER 95 SEPARATE HAULERS OPERATE 80 OF THEM WITH 10 OR FEWER CUSTOMERS OR STOPS LACK OF COMPETITION SWELLS PRETAX PROFIT MARGINS TO ABOUT 50 ACCORDING TO A 1987 RAND CORP STUDY OF RACKETEERING'S INFLUENCE ON HAULING THE ENTRANCE OF BROWNINGFERRIS IS HASTENING A CONSOLIDATION ALREADY UNDER WAY THE NUMBER OF NEW YORK HAULERS IS DOWN TO ABOUT 300 THE CITY SAYS FROM 475 IN 1988 PRICES FOR BIG CUSTOMERS ARE BEGINNING TO FALL TOO BROWNINGFERRIS ALREADY HAS A SMALL HAULING PRESENCE NORTH OF THE CITY IN WESTCHESTER AND ROCKLAND COUNTIES AND THROUGH A JOINT VENTURE IT OPERATES A 370 MILLION TRASH INCINERATOR ON LONG ISLAND THOUGH IT DOES NO HAULING THERE IT NOW HOPES TO BRANCH OUT FROM MANHATTAN TO THE OTHER CITY BOROUGHS AND BEYOND WE'RE HERE TO STAY MR RUCKELSHAUS SAYS OTHER THAN TO NOTE THAT SAFETY IS A CONCERN HE WON'T COMMENT ON THE ORGANIZEDCRIME ELEMENT OR ON HIS COMPANY'S SECURITY MEASURES IT HIRED KROLL ASSOCIATES AN INVESTIGATIVE FIRM TO HELP SCOUT THE MARKET OTHER PEOPLE SAY NO ARRESTS HAVE BEEN MADE IN THE DOG'SHEAD INCIDENT AND POLICE HAVE NO SUSPECT THE LOCAL HAULERS' GROUP KNOWN AS THE COUNCIL OF TRADE WASTE ASSOCIATIONS INC SAYS BROWNINGFERRIS IS TRYING TO DRIVE ITS MEMBERS OUT OF BUSINESS IT'S NOT NICE SAYS JOHN VITALE WHO RUNS FAMILYOWNED VIBRO CARTING INC A 25TRUCK OPERATION FOUNDED IN 1908 IT'S AN EMOTIONAL THING A COMPANY WANTS TO COME IN AND WIPE ME OUT USING ITALIAN DISCRIMINATORY STUFF AND CLAIMING NEW YORK CITY IS CONTROLLED BY A CARTEL THE ASSOCIATION AND A SMALL HAULER AVA CARTING INC SUED BROWNINGFERRIS LAST MONTH IN STATE COURT ALLEGING THAT THE BIG COMPANY HAS LAUNCHED A BLITZANDGOUGE OPERATION INITIALLY BLITZING THE MARKET WITH LOW PRICES TO DRIVE LITTLE HAULERS OUT OF BUSINESS AND THEN WITH MONOPOLY POWER GOUGING CAPTIVE CUSTOMERS BROWNINGFERRIS DENIES THIS AND SAYS IT CAN OFFER PRICE CUTS IN NEW YORK OF AS MUCH AS 50 AND STILL TURN A PROFIT THE MARKET IS FULLY PRICED MR RUCKELSHAUS SAYS THE SMALLFRY HAULERS ACCUSE BROWNINGFERRIS OF HAVING A SORDID REPUTATION AS RUTHLESS UNSCRUPULOUS COMPETITORS AND THEY FREQUENTLY CITE ITS HISTORY OF PRICEFIXING AND ENVIRONMENTAL VIOLATIONS BROWNINGFERRIS PAID 305 MILLION IN A 1991 SETTLEMENT OF AN ANTITRUST LAWSUIT AND TRYING TO RUN A SMALL VERMONT HAULER OUT OF BUSINESS A BROWNINGFERRIS EXECUTIVE TOLD AN UNDERLING SQUISH HIM LIKE A BUG ACCORDING TO 1987 TESTIMONY IN FEDERAL COURT IN BURLINGTON THE COMPANY WAS ORDERED TO PAY 6 MILLION IN ANTITRUST DAMAGES IN NEW YORK THE COMPANY'S SALES PITCH TO PROPERTY MANAGERS HOTELS AND OTHERS IS SIMPLE WOULDN'T YOU RATHER DEAL WITH A 3 BILLION INTERNATIONAL COMPANY HAVE GREAT SERVICE AND GET BIG PRICE CUTS BUT NEW YORK IS A TOUGH TOWN TO SAY WE PICK UP TRASH ALL OVER THE UNITED STATES' IS ONE THING SAYS CHARLES J MAHONEY OF TISHMAN SPEYER PROPERTIES WITH 55 MILLION SQUARE FEET OF NEW YORK OFFICE SPACE THIS IS NEW YORK HE WAS UNIMPRESSED BY A SALES CALL EARLIER THIS YEAR AFTER DISCUSSING BROWNINGFERRIS'S OFFICES THEN OUTSIDE THE CITY AND ITS FLEET OF TRUCKS IT WAS USING A SUBCONTRACTOR I DIDN'T GET THAT COMFORTABLE FEELING I LIKE TO HAVE HE SAYS NAME RECOGNITION IS A PROBLEM TOO BROWNINGFERRIS ASKS ANTHONY CITRONE OF KOLL MANAGEMENT SERVICES ANOTHER BIG BUILDING MANAGER I DON'T EVEN KNOW WHO THAT IS THE BROWNINGFERRIS TEAM HELD EXTENSIVE TALKS WITH CITICORP ABOUT HAULING TRASH FROM ITS MANY MANHATTAN LOCATIONS BUT COULDN'T PRY THE BIG BANKING CONCERN LOOSE FROM ITS LONGTIME HAULER SOME CUSTOMERS STICK WITH THEIR LOCAL HAULERS BUT USE THE THREAT OF BROWNINGFERRIS TO EXTRACT PRICE CUTS IT HELPS TO HAVE THAT OPTION SAYS JOHN SANTORA OF CUSHMAN & WAKEFIELD INC WHICH MANAGES 83 BUILDINGS AND 43 MILLION SQUARE FEET OF OFFICE SPACE HERE HE IS WINNING PRICE CUTS BUT HASN'T YET HIRED THE NEWCOMER I HOPE BROWNINGFERRIS IS HERE TO STAY SAYS MICHAEL DOWNEY OF MENDIK REALTY CO WHICH HAS BEEN AGGRESSIVE IN WINNING PRICE CUTS OF 30 TO 40 ON TRASH BILLS NEW YORK HAULERS WOULD LIKE YOU TO BELIEVE THEY'RE CONNECTED TO ORGANIZED CRIME WHEN THEY'RE IN NEGOTIATIONS MR DOWNEY SAYS BUT BASICALLY THEY'RE JUST SHREWD BUSINESSMEN THEY SET UP THIS WHOLE CARTEL RICHARD FULLER A NEW YORK GARBAGE CONSULTANT PUSHES HIS CLIENTS TO PUT TRASH WORK OUT TO BID BUT SAYS ONLY SINCE BROWNINGFERRIS CAME IN CAN WE GET A BIDDING SITUATION BEING USED AS A THREAT BUT NOT WINNING BUSINESS IS FRUSTRATING FOR BROWNINGFERRIS THE ALGONQUIN HOTEL WAS PAYING THE LEGAL MAXIMUM SET BY THE CITY FOR HAULING 1470 A LOOSE CUBIC YARD AND ASKED ITS HAULER OF 40 YEARS O'BRIEN SANITATION CORP TO CUT THE PRICE O'BRIEN REFUSED THE HOTEL PUT THE WORK OUT TO BID O'BRIEN DROPPED ITS PRICE FROM ABOUT 4700 A MONTH TO ABOUT 2500 AND KEPT THE BUSINESS BROWNINGFERRIS CAME IN SECOND NOBODY ELSE BID SAYS RANJIT BHANDARI AN ALGONQUIN MANAGER WE'LL WIND UP LOSING MONEY SAYS VINCENT MERCANDETTI AN O'BRIEN VICE PRESIDENT WE'VE SPOKEN ABOUT THAT AT OUR ASSOCIATION HOLD THEM OFF AS LONG AS WE CAN HOPE FOR A MIRACLE MAYBE THEIR SERVICE IS LOUSY THE BIGGEST BENEFICIARY OF THE NEW COMPETITION MAY BE THE WORLD TRADE CENTER SINCE OPENING 20 YEARS AGO THE PORT AUTHORITY'S TWIN 110STORY TOWERS HAVE HAD THE SAME HAULER THE CONTRACT HAS ALWAYS BEEN PUBLICLY ADVERTISED AND BID A SPOKESWOMAN SAYS AND LEHIGH CARTING HAS ALWAYS BEEN THE LOW BIDDER LEHIGH'S RATE IS 27 MILLION A YEAR BUT IT LOST THE WORK RECENTLY WHEN BIDS ON A NEW CONTRACT CAME IN AS LOW AS 667214 A 75 SAVINGS BROWNINGFERRIS WAS FOURTH LOWEST A HANDFUL OF LOCAL HAULERS ARE EASILY BIG AND SOPHISTICATED ENOUGH TO SURVIVE THE NEW COMPETITION V PONTE & SONS INC IS NO 1 IN NEW YORK WITH ABOUT 100 TRUCKS AND ITS OWN PAPERRECYCLING MILL BARRETTI GROUP WITH 70 TRUCKS AND A 12 MILLION TRASHTRANSFER STATION ON BROOKLYN'S WATERFRONT HANDLES MORE THAN 1000 TONS OF WASTE DAILY AND HAS ROOM TO NEARLY TRIPLE THAT VOLUME PHILLIP BARRETTI WHOSE SONS ARE THE FOURTH GENERATION TO WORK IN THE BUSINESS FOUGHT OFF THE EFFORT TO LURE AWAY ONE OF HIS BIGGEST CUSTOMERS CITICORP AND IS LOOKING FORWARD TO THE SHAKEOUT THIS WAS VERY HEALTHY FOR THE BUSINESS HE SAYS SITTING IN THE OFFICE HE SHARES WITH HIS ACCOUNTANT JUST ACROSS THE WILLIAMSBURG BRIDGE FROM MANHATTAN WE'LL MATCH THEIR PRICE WE'VE ROLLED UP OUR SLEEVES WE'RE WORKING TWICE AS HARD MUCH OF HIS GROWTH FROM TWO TRUCKS 26 YEARS AGO CAME FROM BUYING THE ROUTES AND THE CUSTOMERS OF OTHER HAULERS CITY OFFICIALS SAY THE WIDESPREAD PRACTICE SHOWS CUSTOMERS ARE CAPTIVES WHILE HAULERS SAY IT MERELY REFLECTS GOODWILL THAT COMES FROM GOOD SERVICE HAULERS TYPICALLY PAY ONE ANOTHER 35 TO 40 TIMES MONTHLY REVENUE FOR PARTICULAR ROUTES GOING OUT AND TAKING AWAY OTHER HAULERS' CUSTOMERS THROUGH SIMPLE PRICECUTTING STILL SEEMS AN UNPLEASANT PROSPECT MR BARRETTI SAYS IF A PARTICULAR CUSTOMER IS VERY UNHAPPY WITH HIS CARTER WE ENTERTAIN THE THOUGHT THE HOTEL INTERCONTINENTAL WAS UNHAPPY ON EAST 48TH STREET IN MANHATTAN WITH NO BASEMENT OR LOADING DOCK IN WHICH TO STORE TRASH THE HOTEL WENT TO EXCRUCIATING LENGTHS TO CUT ITS WASTE VOLUME AS PART OF A COMPANYWIDE EFFORT IT INSTALLED TWIN BALERS IN A SECONDFLOOR TRASH ROOM AND A WALKIN FREEZER TO KEEP FOOD WASTE FROM SMELLING UP THE PLACE THE VOLUME REDUCTION CAME TO 36 BUT THERE WAS NO CUT IN THE TRASH BILL OUR CARTER OF 20 YEARS WAS A NICE GUY BUT HE WOULDN'T BUDGE SAYS DAVID THORN HOTEL MANAGER MY COLLEAGUES IN OTHER CITIES WERE ALL SAVING MONEY AND I WAS LOOKING LIKE A YOYO LAST SPRING ALONG COMES BROWNINGFERRIS AND SAYS GIVE US A TRY' HE NOTES MR THORN WON'T DISCLOSE THE PRICE DIFFERENCE OTHERS SAY IT WAS 8500 A MONTH VS 13500 BUT SAYS IT WAS HUGE ENOUGH THERE WAS NO QUESTION I'D BE FIRED IF I DIDN'T AGREE YET HE WAVERED WE WERE VERY NERVOUS ABOUT THIS BECAUSE OF WHAT WE'D HEARD WE WERE PROBABLY NOT VERY ETHICAL TO BROWNINGFERRIS MR THORN CONFIDES WE LET OUR GUY RECONSIDER HIS PRICE HE SAID NO MR THORN DELAYED FURTHER TO SEE IF BROWNINGFERRIS PICKUPS AT A NEARBY UNITED PARCEL SERVICE FACILITY WERE UNEVENTFUL I WANTED TO SEE NO HASSLES NO GUNFIRE SMOOTH SAILING THE BID WAS ACCEPTED PETER CICALE PRESIDENT OF THREETRUCK EXECUTIVE CARTING CORP THE DISPLACED HAULER DENIES HE WAS GIVEN A SECOND CHANCE TO BID ON HIS BIGGEST ACCOUNT AT 8500 A MONTH HE SAYS HE WOULD LOSE MONEY BUT SAYS HE WOULD HAVE DONE IT ANYWAY NOT TO GIVE BROWNINGFERRIS A FOOTHOLD ANY SAFETY CONCERNS MR THORN HAD HE ADDS WERE RIDICULOUS BROWNINGFERRIS ALSO DISPLACED HAULERS AT COLUMBIAPRESBYTERIAN MEDICAL CENTER METRONORTH COMMUTER RAILROAD AND LORD & TAYLOR'S MAIN STORE AND HEADQUARTERS AT 39TH STREET AND FIFTH AVENUE A UNIT OF MAY DEPARTMENT STORES CO LORD & TAYLOR HAD USED GREGOR CARTING CORP A THREETRUCK FOURMAN HAULER FOR MORE THAN 40 YEARS MOST RECENTLY PAYING 20000 A MONTH BROWNINGFERRIS CUT THAT TO AROUND 15000 OWNER KALMAN GREGOR SAYS HE WAS DISMISSED BY LORD & TAYLOR WHICH ACCOUNTED FOR THE BULK OF HIS REVENUE LAST JULY IT CARRIED US IT WAS THE LIFE STAY OF THE BUSINESS WITH LITTLE IDEA HOW TO GET NEW BUSINESS ONE NIGHT HE FOLLOWED THE BROWNINGFERRIS SUBCONTRACTOR'S TRUCK FROM ITS 1 AM PICKUP AT THE INTERCONTINENTAL TO ITS 5 AM STOP AT LORD & TAYLOR HE NOTICED THREE CARS TAGGING ALONG WITH THE GARBAGE TRUCK LOOKING CLOSELY HE SAW THEY ALL CONTAINED ARMED GUARDS 9311080042 931108 TECHNOLOGY & MEDICINE RESEARCHERS SAY ANTIBODY REDUCES RISK OF BLOOD CLOTTING AFTER HEART PROCEDURE BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA A CENTOCOR INC PRODUCT TO BE MARKETED BY ELI LILLY & CO REDUCES THE RISK OF NEW BLOOD CLOTS DAMMING UP HEART ARTERIES THAT HAVE BEEN REOPENED AFTER FIRST HEART ATTACKS RESEARCHERS REPORTED HERE THE CENTOCOR PRODUCT CALLED 7E3 IS A MONOCLONAL ANTIBODY THAT GLUES ITSELF TO RED BLOOD CELLS AND PREVENTS THEM FROM COAGULATING INTO A BLOOD CLOT THAT COULD BLOCK ARTERIES AND CAUSE A HEART ATTACK THE ANTIBODY IS IN THE FINAL STAGES OF HUMAN TESTING TO SEE IF IT CAN PREVENT SECOND HEART ATTACKS IN PATIENTS WHOSE BLOCKED HEART ARTERIES HAVE BEEN REOPENED BY A TINY BALLOON IN THE FIRST REPORTS OF A TRIAL INVOLVING ALMOST 2100 PATIENTS RESEARCHERS SAID THAT SIX MONTHS AFTER THE EXPERIMENT BEGAN PATIENTS TREATED WITH 7E3 HAD 23 FEWER INCIDENTS OF ARTERIES CLOSING UP A SECOND TIME THAN PATIENTS WHO HAD RECEIVED INJECTIONS OF PLACEBO OR INERT SOLUTIONS LILLYFUNDED SYMPOSIUM RESULTS OF THE TRIAL WERE PRESENTED HERE AT A SYMPOSIUM FUNDED BY LILLY AND ORGANIZED BY CARDIOLOGIST ERIC TOPOL AND THE CLEVELAND CLINIC FOUNDATION IN CLEVELAND LILLY GAINED MARKETING RIGHTS TO CENTOCOR'S 7E3 ANTIBODY AS A SUBSTITUTE FOR RIGHTS TO CENTOCOR'S CENTOXIN ANTIBODY THAT WAS SUPPOSED TO REDUCE DEATHS FROM RUNAWAY BACTERIAL INFECTIONS BUT WHICH PRODUCED AMBIGUOUS RESULTS IN CLINICAL TRIALS AN APPLICATION FOR MARKETING APPROVAL IS TO BE SUBMITTED TO THE FOOD AND DRUG ADMINISTRATION BY YEAR END ACCORDING TO A CENTOCOR STATEMENT THE SYMPOSIUM WHERE THE TRIAL RESULTS WERE ANNOUNCED WAS HELD TO COINCIDE WITH THE ANNUAL SCIENTIFIC SESSIONS OF THE AMERICAN HEART ASSOCIATION THE LARGE TRIAL INVOLVED PATIENTS WHO HAD HAD HEART ATTACKS CAUSED BY DISEASED HEART ARTERIES THAT HAD SUDDENLY CLOSED UP AND HAD BEEN REOPENED BY INFLATING A TINY BALLOON AT THE TIP OF A CATHETER ALTHOUGH ANGIOPLASTY IS BEING USED IN 400000 HEART PATIENTS ANNUALLY TO RESTORE BLOOD FLOW IN CLOGGED ARTERIES ITS BIGGEST DRAWBACK IS THAT NEW BLOCKAGES OCCUR IN MANY PATIENTS AND THEY HAVE TO UNDERGO A SECOND ANGIOPLASTY OR CORONARYBYPASS PROCEDURE IN THE 7E3 TRIAL WHICH INVOLVED 56 MEDICAL CENTERS PATIENTS WERE TREATED AT THE TIME THEY UNDERWENT THE ANGIOPLASTY PROCEDURE ONE THIRD OF THE PATIENTS RECEIVED A SINGLE LARGE DOSE OF THE ANTIBODY ANOTHER THIRD RECEIVED A LARGE DOSE PLUS A STEADY INFUSION OF THE ANTIBODY FOR THE SUCCEEDING 12 HOURS AND THE REMAINING THIRD WAS GIVEN INJECTIONS AND INFUSIONS OF A PLACEBO OF THE PATIENTS WHO RECEIVED BOTH THE INJECTION AND THE 12HOUR INFUSION OF THE ANTIBODY AND WHO HAD A SUCCESSFUL ANGIOPLASTY ONLY 19 HAD HAD REBLOCKAGES IN THE SUCCEEDING SIX MONTH COMPARED WITH 24 OF THE PATIENTS WHO RECEIVED ONLY A SINGLE INJECTION OF THE ANTIBODY AND 25 WHO RECEIVED A PLACEBO CARDIOLOGIST ROBERT R CALIFF OF DUKE UNIVERSITY MEDICAL CENTER IN DURHAM NC REPORTED FOR THE MULTICENTER TRIAL GROUP AMONG THE PATIENTS WHO WENT A MONTH WITHOUT ANY REBLOCKAGES ONLY 15 WHO GOT THE INFUSIONS OF THE ANTIBODY SUFFERED A REBLOCKAGE IN THE FOLLOWING FIVE MONTHS VS ABOUT 20 IN THE PLACEBO AND INJECTIONONLY GROUPS DR CALIFF SAID SEPARATELY MEL PERELMAN SAID HE WOULD RETIRE AT YEAR END AS LILLY EXECUTIVE VICE PRESIDENT AND PRESIDENT OF LILLY RESEARCH LABORATORIES DR PERELMAN WHO HAD OPPOSED THE LILLY BOARD'S FIRING THIS YEAR OF FORMER CHIEF EXECUTIVE OFFICER VAUGHN D BRYSON ALSO WILL LEAVE THE BOARD AUGUST M WATANABE WILL SUCCEED HIM AS PRESIDENT OF LILLY RESEARCH 9311080041 931108 FARAH AMENDS TERMS OF CREDIT EL PASO TEXAS FARAH INC SAID IT AMENDED ITS CREDIT AGREEMENT WITH CONGRESS FINANCIAL CORP INCREASING THE LINE OF CREDIT TO 40 MILLION FROM 29 MILLION AND LOWERING THE INTEREST RATE TO PRIME RATE PLUS 225 PERCENTAGE POINTS FROM PRIME PLUS 3 PERCENTAGE POINTS THE AGREEMENT EXPIRES NOV 3 1995 CONGRESS FINANCIAL IS A UNIT OF CORESTATES FINANCIAL CORP PHILADELPHIA 9311080040 931108 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR MANY ANALYSTS BELIEVE THE CONSUMER PRICE INDEX ROSE SHARPLY IN OCTOBER PRIMARILY BECAUSE OF THE NEW GASOLINE TAX THE INCREASE OF 43 CENTS A GALLON PROBABLY HELPED BOOST THE INDEX 06 LAST MONTH WHICH WOULD BE THE LARGEST JUMP THIS YEAR SAID FREDERICK STURM ECONOMIST AT FUJI SECURITIES INC IN CHICAGO THE CORE CPI RATE EXCLUDING FOOD AND ENERGY LIKELY ROSE ONLY 03 HE SAID BUT FOOD HAD LITTLE TO DO WITH THE OVERALL INCREASE MOST OF IT WAS THE GAS TAX THE CORE RATE IS MORE INDICATIVE OF THE ACTUAL RATE OF INFLATION WHICH HAS BEEN RELATIVELY WELL BEHAVED LATELY MR STURM SAID CONSUMER PRICES HAVE RISEN ONLY 27 DURING THE PAST 12 MONTHS WHICH IS EVEN SLOWER THAN THE SCANT 29 RISE IN 1992 THE LABOR DEPARTMENT THIS WEEK WILL RELEASE ITS CONSUMER PRICES REPORT FOR OCTOBER AS WELL AS DATA ON PRODUCER PRICES MR STURM SAID HE EXPECTS A 02 RISE IN THE PRODUCER PRICE INDEX AND A 01 INCREASE EXCLUDING FOOD AND ENERGY COMBINED WITH VIRTUALLY FLAT WAGE INFLATION THE PRICE INDEXES SHOULD KEEP THE FEDERAL RESERVE FROM MOVING ON INTEREST RATES ANYTIME SOON HE SAID THE PATH OF LEAST RESISTANCE FOR THE FED BOTH POLITICALLY AND FUNDAMENTALLY IS TO DO NOTHING MR STURM SAID IT HAS BEEN THAT WAY FOR A YEAR AND IS LIKELY TO CONTINUE THAT WAY 9311080039 931105 THE BUSINESS OF LAW MEDIAN STARTING SALARIES FOR 1992 GRADUATES OF SELECTED LAW SCHOOLS AS OF APRIL 15 SOME OF THE VARIATION CAN BE CONTRIBUTED TO REGIONAL DIFFERENCES IN LAWYERS' EARNINGS 9311080038 931108 THE OUTLOOK EXPANSION MAY PROVE LONGDISTANCE RUNNER BY ALFRED L MALABRE JR NEW YORK THE BUSINESS EXPANSION FOR ALL THE RECENT SHAKINESS IN THE STOCK AND BOND MARKETS MAY WELL PROVE REMARKABLY DURABLE AFTER 31 MONTHS IT ALREADY HAS OUTLASTED 17 OF THE 31 EARLIER BUSINESSCYCLE UPSWINGS THAT ECONOMISTS HAVE TRACED SINCE THE MIDDLE OF THE LAST CENTURY IF THE EXPANSION ENDURES ONLY A FEW MORE MONTHS ITS LENGTH WILL EXCEED THE AVERAGE FOR ALL ITS PREDECESSORS THIS SEEMS LIKELY THE ECONOMY MAY IN FACT STILL BE IN THE RELATIVELY EARLY STAGES OF AN UNUSUALLY LONG GROWTH PERIOD EXPANSIONS UNLIKE OLD SOLDIERS DON'T JUST FADE AWAY INSTEAD THEY NORMALLY DIE AFTER CRASHING INTO OBSTACLES TO FURTHER GROWTH THESE MAY BE PHYSICAL SUCH AS SHORTAGES OF LABOR AND PLANT FACILITIES OR FINANCIAL SUCH AS OPPRESSIVE DEBT AND SHORTAGES OF MONEY AND CREDIT INVARIABLY THE RESULT IS TO HALT FURTHER EXPANSION AND PRECIPITATE A DROP IN BUSINESS ACTIVITY BY MOST GAUGES THIS IS HARDLY IN PROSPECT BUSINESSCYCLE HISTORY SHOWS FOR INSTANCE THAT INFLATION OFTEN WORSENS MARKEDLY AS CONSTRAINTS TO FURTHER GROWTH BUILD BUT AT PRESENT DESPITE WIDESPREAD WORRY THAT INFLATION MAY SOON WORSEN MOST EARLYWARNING BAROMETERS OF INFLATION POINT TO NO SUCH DEVELOPMENT A LEADING INDICATOR OF INFLATION COMPILED BY PAINEWEBBER INC HAS FALLEN SHARPLY FOR A YEAR AND STANDS AT ITS LOWEST LEVEL IN TWO YEARS THE MEASURE USUALLY FORECASTS THE GENERAL PRICE TREND ABOUT A YEAR IN ADVANCE A SIMILAR PRECURSOR COMPILED AT COLUMBIA'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH ALSO SUGGESTS THAT INFLATION WILL REMAIN SUBDUED A MAJOR REASON FOR THIS THE COLUMBIA RESEARCHERS SAY IS THE EXPANSION'S MODEST PACE PRECISELY BECAUSE GROWTH HAS BEEN SO SLUGGISH THEY SAY CONSTRAINTS TO FURTHER GROWTH WILL REMAIN MINIMAL EVEN IF THE PACE CONTINUES TO PICK UP MODERATELY WORKING TO SUPPRESS THE ECONOMY'S PACE FOR EXAMPLE ARE DEFENSE CUTBACKS BARRING UNEXPECTED TROUBLE ON THE INTERNATIONAL FRONT THIS PATTERN SEEMS LIKELY TO PERSIST THE NUMBER OF JOBS IN THE ARMED SERVICES HAS FALLEN NEARLY 90000 IN THE PAST YEAR AND DEFENSE OUTLAYS ARE RUNNING SOME 7 BILLION BELOW 1992 LEVELS DEFENSE SPENDING IS PARTICULARLY INFLATIONARY SINCE IT PUTS MONEY IN PEOPLE'S POCKETS BUT DOES LITTLE TO EXPAND WHAT CONSUMERS MAY BUY ALSO HOLDING BACK THE EXPANSION IS WEAK ECONOMIC ACTIVITY IN IMPORTANT OVERSEAS MARKETS FOR US EXPORTS UNEMPLOYMENT IN GERMANY FRANCE ITALY AND BRITAIN IS FAR MORE WIDESPREAD THAN IN THE US KEVIN LOGAN AN ECONOMIST AT SWISS BANK CORP IN NEW YORK DOUBTS THAT THESE OVERSEAS ECONOMIES WILL SHOW MUCH OF A REBOUND IN COMING MONTHS THAT SLUGGISHNESS WILL HELP KEEP THE US EXPANSION MODERATE WITH THE JOBLESS RATE IN THE US AT 68 LABOR REMAINS IN PLENTIFUL SUPPLY AND WITH INDUSTRY UTILIZING LESS THAN 82 OF ITS CAPACITY PRODUCTION FACILITIES ARE HARDLY OVERBURDENED JUST BEFORE THE LAST RECESSION BEGAN IN MID1990 ONLY 53 OF THE LABOR FORCE WAS UNEMPLOYED AND INDUSTRIAL OPERATIONS WERE NEAR 84 OF CAPACITY CONTINUING GROWTH WOULD TEND TO RAISE THIS RATE BUT SERIOUS CAPACITY STRAINS SEEM UNLIKELY WITH CORPORATE PROFITS AT RECORD LEVELS SPENDING FOR NEW PLANT AND EQUIPMENT IS RISING BRISKLY AND SERVING TO LIFT CAPACITY BARRINGTON RESEARCH ASSOCIATES AN INVESTMENT FIRM IN BARRINGTON ILL CALLS THIS THE ECONOMY'S BRIGHTEST SPOT NOTING THAT CAPITALEQUIPMENT OUTLAYS ROSE NEARLY 20 IN THE YEAR'S FIRST HALF AND CONTINUE TO OUTSTRIP THE 1992 PACE THE FINANCIAL ARENA ALSO EVINCES LITTLE STRAIN THE PRIVATE SECTOR'S DEBT BURDEN THOUGH STILL ONEROUS AFTER THE LAST DECADE'S BORROWING BINGE CONTINUES TO LIGHTEN CONSUMER INSTALLMENT DEBT AMOUNTS TO ABOUT 16 OF AFTERTAX INCOME NEARLY THREE PERCENTAGE POINTS LESS THAN THREE YEARS AGO THE CORPORATE DEBT LOAD IN THE SAME PERIOD HAS EASED TO 37 OF GROSS DOMESTIC PRODUCT FROM 42 DIMINISHING AS WELL THOUGH STILL WORRISOMELY HIGH IS THE FEDERAL BUDGET DEFICIT ITS SHRINKAGE IS TO BE EXPECTED IN AN EXPANSION AS THE ECONOMY GROWS SO DO INCOMES AND ULTIMATELY FEDERAL REVENUES AT THE SAME TIME FEDERAL JOBLESS PAYMENTS DROP AS UNEMPLOYMENT SUBSIDES WHEN THE LAST RECESSION WAS APPROACHING MOST DEBT MEASURES WERE APPRECIABLY HIGHER THAN NOW AND WERE RISING AN OVERLY RESTRICTIVE MONETARY POLICY AT THE FEDERAL RESERVE COULD HALT THE EXPANSION BUT SO LONG AS INFLATION REMAINS SUBDUED THE FED SEEMS UNLIKELY TO ADOPT SUCH A POLICY THE FEDERAL FUNDS RATE THAT BANKS CHARGE ONE ANOTHER ON VERY SHORTTERM LOANS WHICH THE FED REGULATES CLOSELY IS NEAR ITS LOWEST LEVEL IN THREE DECADES THE LAST THING THE FED WANTS TO DO RIGHT NOW IS SNUFF OUT A MODEST ECONOMIC UPSWING IN WHICH INFLATION IS OF RELATIVELY LITTLE CONCERN SAYS DAVID A POOLE CHIEF ECONOMIST OF VAN ECK ASSOCIATES IN NEW YORK RECENT INTERESTRATE TRENDS LEAD GEOFFREY H MOORE DIRECTOR OF COLUMBIA'S RESEARCH CENTER TO FORECAST THAT THE NEXT RECESSION WON'T ARRIVE UNTIL AT LEAST MID1996 IT COULD BE EVEN FURTHER OFF HE ADDS IF RATES THAT BANKS CHARGE PRIME CUSTOMERS DON'T SOON RISE THE ECONOMIC OUTLOOK IN SUM IS FOR A GOOD DEAL MORE OF WHAT HAS RECENTLY OCCURRED MODEST GROWTH THAT IS HARDLY A REASON TO BREAK OUT THE CHAMPAGNESUCH SLOW GROWTH IMPLIES CONTINUED PROBLEMS IN THE JOB MARKET BUT IT SURE BEATS SUFFERING THROUGH YET ANOTHER RECESSION WHICH AN UNSUSTAINABLY SWIFT EXPANSION COULD WELL PRECIPITATE 9311080037 931108 MANAGER'S JOURNAL STOCK CRASH NEEDN'T LEAD TO LEGAL HASH BY TOWER C SNOW JR FOR THOSE WHO ACCEPT THE AXIOM THAT INVESTING CARRIES RISK AS WELL AS OPPORTUNITY THE IDEA THAT ALL LOSSES MUST SOMEHOW BE COMPENSATED SEEMS LUDICROUS BUT SHAREHOLDERS ARE INCREASINGLY USING US SECURITIES LAWS AS A KIND OF INVESTOR INSURANCE RATHER THAN FOR THEIR INTENDED PURPOSE WHICH IS TO PRESCRIBE FAIR MARKET PRACTICES FOR EQUITABLE RISKTAKING IN FACT IN THE PAST FOUR YEARS NEARLY 1000 PUBLIC COMPANIES BLUECHIP DOWAGERS AS WELL AS HIGHFLYING UPSTARTS HAVE BEEN SUED BY THEIR SHAREHOLDERS OVER LOSSES A CURSORY REVIEW OF THE BUSINESS PRESS PRODUCES A LINEUP OF SUCH DISTINGUISHED CORPORATE CITIZENS AS HEWLETTPACKARD XEROX OCCIDENTAL PETROLEUM RJR NABISCO COMPAQ COMPUTER GILLETTE DUN & BRADSTREET MARRIOTT AND SPRINT EVERY PUBLICLY TRADED US CORPORATION IS AT RISK OF BEING SUED BY SHAREHOLDERS IN A SECURITIES CLASS ACTION A STOCK PRICE DECLINE OF JUST 10 OVER A RELATIVELY SHORT PERIOD CAN PROVIDE ANGRY INVESTORS WITH SUFFICIENT EXCUSE TO SUE A COMPANY TO RECOVER LOSSES A DROP OF 25 OR MORE VIRTUALLY GUARANTEES A LAWSUIT THE SUMS AT STAKE CAN BE ENORMOUS ONE REASON THEY ARE A MAGNET FOR LITIGATION SECURITIES CLASS ACTIONS SELDOM INVOLVE LESS THAN 25 MILLION IN POTENTIAL DAMAGES FREQUENTLY INVOLVE 10 TIMES THAT AMOUNT AND SOMETIMES EXCEED 1 BILLION THE CORPORATE RESPONSE TO THIS THREAT HAS GENERALLY BEEN PASSIVE EVEN COUNTERPRODUCTIVE FACED WITH THE COST RISK PUBLICITY AND TIME INVOLVED IN LITIGATION MORE THAN 95 OF COMPANIES CHOOSE TO SETTLE OUT OF COURT EVEN WHEN MANY HAVE A STRONG CASE THIS ENCOURAGES MORE LAWSUITS BY SIGNALING THAT COMPANIES WILL PAY RATHER THAN FIGHT AND WHILE SOME CASES HAVE MERIT MANY DO NOT UNTIL US SECURITIES LAWS ARE REFORMED TO CURTAIL MERITLESS AND OPPORTUNISTIC CLASS ACTIONS COMPANIES NEED TO BE MORE ACTIVE IN MINIMIZING THIS THREAT AVOID SURPRISING THE MARKET THIS IS THE MOST IMPORTANT STEP A COMPANY CAN TAKE TO AVOID LITIGATION GRADUAL DECLINES IN THE PRICE OF A STOCK USUALLY DO NOT PROVOKE LAWSUITS PRECIPITOUS DECLINES DO THE BEST INSURANCE AGAINST STOCK SWINGS IS TO KEEP THE MARKETS INFORMED ON A REGULAR BASIS OF THE FORCES AFFECTING OPERATING RESULTS A KNOWLEDGEABLE EXECUTIVE SUCH AS THE CFO SHOULD GIVE FINANCIAL ANALYSTS THE INFORMATION THEY NEED WITH SUFFICIENT TIME SO THAT IF WARRANTED THEY CAN LOWER THEIR ESTIMATES OF A COMPANY'S PERFORMANCE THIS IS ADMITTEDLY A BALANCING ACT SINCE THE COMPANY CANNOT GIVE OUT MATERIAL INSIDE INFORMATION THAT SHOULD BE DISCLOSED TO THE ENTIRE MARKET AT ONCE OR KEPT CONFIDENTIAL FOR BUSINESS REASONS BUT THE SUREST WAY TO INVITE A SECURITIES CLASS ACTION IS TO SURPRISE THE MARKET WITH DISAPPOINTING EARNINGS RESULTS IN A ROUTINE QUARTERLY REPORT EVEN ALERTING THE MARKET IN A PRELIMINARY PRESS RELEASE PRIOR TO THE REPORT AS MANY COMPANIES DO STILL DOESN'T GET THE COMPANY OFF THE HOOK ANY ANNOUNCEMENT REGARDLESS OF TIMING THAT CAUSES THE COMPANY'S STOCK TO PLUMMET INVITES A SECURITIES COMPLAINT AVOID USING ADJECTIVES TO DESCRIBE COMPANY PERFORMANCE ADJECTIVES ALWAYS HURT COMPANIES IN LITIGATION IN ALL DISCLOSURE DOCUMENTS PRESS RELEASES ANNUAL REPORTS AND OTHER CORPORATE COMMUNICATIONS LIMIT STATEMENTS TO CONCRETE FACTS AND HISTORICAL DATA THE MARKET CAN DECIDE WHETHER A PERFORMANCE WAS STRONG EXTRAORDINARY OR OTHERWISE REFRAIN FROM MAKING PROJECTIONS EVEN THOUGH THE SEC ENCOURAGES PROJECTIONS AND HAS PROVIDED A SAFE HARBOR FOR THEM IT CANNOT STOP THE SUITS THAT UNMET PROJECTIONS INVITE WHETHER A PROJECTION HAD A REASONABLE BASIS WHETHER ADVERSE FACTS WERE KNOWN AT THE TIME OF THE PROJECTION AND WHETHER THE PROJECTION WAS MADE IN GOOD FAITH INVARIABLY BECOME THE FOCUS OF LITIGATION LEAVE THE FORECASTING TO THE FINANCIAL COMMUNITY INCLUDE RISK FACTORS IN MOST DOCUMENTS DO NOT LIMIT RISKFACTOR DISCLOSURE TO PROSPECTUSES AND REGISTRATION STATEMENTS VIRTUALLY EVERY 10Q SHOULD CONTAIN AT LEAST A PARAGRAPH IDENTIFYING THE RISK FACTORS THAT ORDINARILY AFFECT THE COMPANY'S BUSINESS WHEN MORE SPECIFIC INFORMATION CAN BE INCLUDED IT SHOULD BE RISK FACTORS SHOULD ALSO BE LISTED IN 10KS AND MANAGEMENT'S DISCUSSION AND ANALYSIS SECTIONS MANY EXECUTIVES RESIST CITING RISK FACTORS BECAUSE THEY BELIEVE THIS WILL DAMPEN THE FINANCIAL COMMUNITY'S ENTHUSIASM FOR THE COMPANY NO EMPIRICAL EVIDENCE SUPPORTS THIS CLOSE THE TRADING WINDOW FOR INSIDERS IF DISAPPOINTING RESULTS ARE EXPECTED SELLING BY INSIDERS PRIOR TO A FORESEEN DOWNTURN IN THE STOCK PRICE DUE TO THE COMPANY'S PERFORMANCE GUARANTEES LITIGATION AND SUBSTANTIAL INDIVIDUAL EXPOSURE THE FIRST THING INVESTORS LOOK AT IN EVALUATING WHETHER TO FILE A COMPLAINT IS THE AMOUNT OF INSIDER SELLING ALTHOUGH MOST COMPANIES HAVE INSIDERTRADING POLICIES THAT ESTABLISH WHEN STOCK CAN BE SOLD TYPICALLY 48 TO 72 HOURS AFTER PUBLIC DISCLOSURE OF THE MOST RECENT QUARTERLY RESULTS THIS DOES NOT ALWAYS MAKE IT SAFE TO SELL IN A TRADING WINDOW TRADING WINDOWS ARE DESIGNED TO LIMIT WRONGFUL TRADING BUT THEY HAVE NO LEGAL SIGNIFICANCE OTHER THAN AS EVIDENCE OF INTENT IF BAD NEWS IS ON THE HORIZON IT IS PRUDENT TO CLOSE THE TRADING WINDOW FOR ALL THOSE WITH INSIDE KNOWLEDGE PARTICULARLY OFFICERS AND DIRECTORS MR SNOW HAS DEFENDED NUMEROUS HIGHTECH COMPANIES IN SECURITIES CLASSACTION LAWSUITS HE IS A PARTNER IN THE SAN FRANCISCO OFFICE OF A NEW YORK LAW FIRM 9311080036 931108 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED SEVEN NEW LISTINGS INCLUDING THREE INITIAL PUBLIC OFFERINGS WHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ANNOUNCED 17 NEW LISTINGS FOR ITS NATIONAL MARKET SYSTEM INCLUDING 11 INITIAL OFFERINGS THE AMERICAN STOCK EXCHANGE ANNOUNCED FOUR ISSUES RELATED TO TRANS WORLD AIRLINES INC AND WARRANTS ON A NEW SECURITY BASED ON AN INDEX OF HONG KONG COMMON STOCKS THE BIG BOARD BEGAN TRADING SHARES IN THREE INITIAL OFFERINGS HARTEHANKS COMMUNICATIONS INC SAN ANTONIO TEXAS A COMMUNICATIONS COMPANY UNDER HHS HORIZON OUTLET CENTERS INC MUSKEGON MICH A REALESTATE INVESTMENT TRUST UNDER HGI AND M/I SCHOTTSTEIN HOMES INC COLUMBUS OHIO A HOMEBUILDER UNDER MHO THE BIG BOARD ALSO BEGAN TRADING SUN COAST PLASTICS INC DALLAS A MAKER OF PLASTIC CLOSURES UNDER SN AND HILLHAVEN CORP TACOMA WASH A NURSINGHOME OPERATOR UNDER HIL SUN COAST FORMERLY TRADED OVERTHECOUNTER AND HILLHAVEN PREVIOUSLY TRADED ON THE AMEX ALUMAX INC NORCROSS GA AN ALUMINUM COMPANY SPINOFF OF AMAX INC BEGAN TRADING ON A WHENISSUED BASIS UNDER ALM THE BIG BOARD ALSO BEGAN TRADING AMERICAN DEPOSITARY SHARES OF BUFETE INDUSTRIAL SA A MEXICO CITY ENGINEERING AND CONSTRUCTION COMPANY UNDER GBI THE NASDAQ NATIONAL MARKET SYSTEM ADDED THE FOLLOWING INITIAL OFFERINGS HOLOPHANE CORP COLUMBUS OHIO A MANUFACTURER OF LIGHTING SYSTEMS UNDER HLPH INTEGRACARE INC DELRAY BEACH FLA A PROVIDER OF SERVICES TO RESIDENTS OF NURSING FACILITIES UNDER ITEG MERCURY INTERACTIVE CORP SANTA CLARA CA A SOFTWARE SYSTEMS DEVELOPER UNDER MERQ PARTNERRE HOLDINGS LTD PEMBROKE PARISH BERMUDA A REINSURANCE COMPANY UNDER PTREF PETROCORP INC HOUSTON TEXAS AN ENERGY CONCERN UNDER PETR DM MANAGEMENT CO HINGHAM MASS A MARKETER OF WOMEN'S APPAREL UNDER DMMC PATTERSON ENERGY INC SNYDER TEXAS AN ENERGY CONCERN UNDER PTEN AND WARRANTS UNDER PTENW TRANSNATIONAL RE CORP NEW YORK A REINSURANCE COMPANY UNDER TREX FIRST STATE BANCORP ALBURQUERQUE NM A BANK HOLDING COMPANY UNDER FSNM MOUNTASIA ENTERTAINMENT INTERNATIONAL INC ALPHARETTA GA AN ENTERTAINMENT CENTERS' OWNER UNDER FUNN AND PENEDERM INC FOSTER CITY CALIF A SKINCARE COMPANY UNDER DERM TWO COMPANIES JOINED THE NATIONAL MARKET SYSTEM FROM THE NASDAQ SMALLCAP MARKET BIOJECT MEDICAL TECHNOLOGIES INC PORTLAND ORE A MAKER OF DRUG DELIVERY SYSTEMS UNDER BJCT AND AMRION INC BOULDER COLO A HEALTH CARE PRODUCTS COMPANY UNDER AMRI VISX INC SANTA CLARA CALIF A MAKER OF OPTICAL SURGICAL SYSTEMS UNDER VISX VISX FORMERLY TRADED ON THE AMEX FIRST FINANCIAL BANKSHARES INC ABILENE TEXAS A MULTIBANK HOLDING COMPANY MOVED TO THE NATIONAL MARKET FROM THE PINK SHEETS UNDER FFIN AND TWO COMPANIES JOINED THE NATIONAL MARKET AFTER REORGANIZATION UNDER CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS CARSON PIRIE SCOTT & CO MILWAUKEE WIS A DEPARTMENT STORES OPERATOR UNDER CPSC AND FAIRFIELD COMMUNITIES INC LITTLE ROCK ARK A RESORT AND HOME DEVELOPMENT OPERATOR UNDER FFCI THE AMEX LISTED TRANS WORLD AIRLINES INC VOTING TRUST CERTIFICATES UNDER TWAVWI CUMULATIVE PREFERRED STOCK UNDER TWAPRWI 10 SENIOR SECURED NOTES UNDER TWAAWI AND 8 SENIOR SECURED NOTES UNDER TWABWI THE AMEX ALSO LISTED CALL WARRANTS BASED ON ITS INDEX OF 30 COMMON STOCKS TRADING ON THE HONG KONG EXCHANGE AND OPTIONS ON HILLHAVEN CORP AND OMEGA ENVIRONMENTAL INC THE PACIFIC STOCK EXCHANGE BEGAN TRADING OPTIONS ON GILEAD SCIENCES INC DANKA BUSINESS SYSTEMS PLC AND LONGTERM OPTIONS ON CHIRON CORP THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS NOV 8 ON CCP INSURANCE INC INTERNATIONAL TOTALIZATOR SYSTEMS INC MICROCHIP TECHNOLOGY INC SPIEGEL INC AND OMEGA ENVIRONMENTAL INC CHICAGO BOARD OPTIONS EXCHANGE ALSO LISTED LONGTERM OPTIONS ON CHIRON CORP AND SAID IT BEGAN TRADING OPTIONS ON INTEREST RATES BASED ON THE YIELDTOMATURITY OF THE MOST RECENT ISSUE OF 5YEAR AND 10YEAR TREASURY NOTES AND 30YEAR TREASURY BONDS THE PHILADEPHIA STOCK EXCHANGE BEGAN OPTIONS ON CELLULAR INC 9311080034 931108 WHAT'S NEWS BUSINESS AND FINANCE VIACOM SWEETENED ITS BID FOR PARAMOUNT TO 104 BILLION INCREASING THE PRESSURE ON QVC TO COMPLETE TALKS WITH BELLSOUTH ABOUT AN INVESTMENT THAT COULD HELP QVC RAISE ITS RIVAL OFFER THE BIGGER BID CAME AS QVC WAS SCRAMBLING TO ANSWER ANTITRUST QUESTIONS FROM REGULATORS ABOUT LIBERTY MEDIA A CABLETV COMPANY THAT IS A BIG QVC SHAREHOLDER SOUTHWESTERN BELL AGREED TO MAKE A SUBSTANTIAL INVESTMENT IN A CABLE COMPANY IT WOULD LAUNCH WITH COX ENTERPRISES IN THE LATEST ALLIANCE BETWEEN PHONE AND CABLETV CONCERNS BOND PRICES FELL FURTHER WITH THE TREASURY'S 30YEAR BOND LOSING ABOUT 1/2 POINT AND ITS YIELD RISING TO 620 LAST WEEK'S SELLOFF WAS TRIGGERED BY THE ECONOMY'S MODERATE SHOW OF STRENGTH BUT WORRIES OF ACCELERATING INFLATION ARE OVERBLOWN EXPERTS SAID US STOCK MARKET INDEXES REBOUNDED AFTER TWO DAYS OF SHARP LOSSES EUROPEAN AND JAPANESE STOCKS SANK FURTHER MOST EUROPEAN INDEXES FINISHED THE WEEK 2 TO 3 LOWER THE UNEMPLOYMENT RATE EDGED UP TO 68 IN OCTOBER BUT FACTORIES ADDED 12000 EMPLOYEES TO THEIR PAYROLLS THE FIRST TIME SINCE FEBRUARY THAT MANUFACTURERS HAVEN'T CUT WORKERS P&G IS CONSIDERING REQUIRING RETAILERS TO BUY ITS PRODUCTS ONLY IN LARGE QUANTITIES EFFECTIVELY FORCING THOSE THAT NEED SMALLER AMOUNTS TO PAY A PREMIUM TO BUY THROUGH WHOLESALERS IBM'S CHIEF STRATEGIST QUIT IN WHAT MAY BE A SIGN OF GERSTNER'S DESIRE TO SPEED UP THE PACE OF CHANGE AT IBM MYLAN LABORATORIES' CHAIRMAN AND CHIEF EXECUTIVE DIED SATURDAY OF A HEART ATTACK ROY MCKNIGHT'S DEATH COULD FURTHER FUEL SPECULATION OF A TAKEOVER OF THE GENERIC DRUG MAKER RJR NABISCO'S STOCK SHOT UP 11 AFTER AN ANNOUNCEMENT BY RIVAL PHILIP MORRIS RAISED THE PROSPECT OF HIGHER CIGARETTE PRICES PHILIP MORRIS'S STOCK PRICE ROSE 55 AFTER THE COMPANY TOLD US WHOLESALERS IT WILL LIMIT THE AMOUNT OF CIGARETTES THEY CAN BUY BANK REGULATORS ARE USING TOUGHER TESTS TO DETERMINE IF BANKS DISCRIMINATE AGAINST MINORITY MORTGAGE APPLICANTS BY HOLDING THEM TO HIGHER STANDARDS THAN WHITE BORROWERS THE COMPTROLLER OF THE CURRENCY WILL REVIEW 200 BIG MORTGAGELENDING BANKS SOME BANKS AREN'T COMPLYING WITH NEW REGULATORY GUIDELINES ON THE SALE OF MUTUAL FUNDS AND COULD FACE ENFORCEMENT ACTION OR POSSIBLY RESTRICTIVE LEGISLATION THE COMPTROLLER SAID A CURRENT AND FORMER EMPLOYEE OF AN AMERICAN EXPRESS BANK ARE UNDER GRAND JURY INVESTIGATION FOR THEIR POSSIBLE ROLES IN HELPING AN ALLEGED DRUG SMUGGLER LAUNDER ABOUT 30 MILLION UAL OFFERED TO BACK OUT OF THE SALE OF ITS CATERING BUSINESS IF ITS MACHINISTS UNION AGREES TO LABOR CONTRACT REVISIONS THAT WOULD LOWER THE COST OF OPERATING UNITED'S FLIGHT KITCHENS AC NIELSEN'S NORTH AMERICAN OPERATIONS CHIEF QUIT AND RETURNED TO RIVAL INFORMATION RESOURCES THE MARKETINGDATA FIRM HE LEFT IN JUNE BONDS LEHMAN BROTHERS TREASURY INDEX 549109 OFF 1377 COMMODITIES OIL 1709 A BARREL OFF 31 CENTS DOW JONES FUTURES INDEX 13369 UP 092 SPOT INDEX 12076 UP 100 DOLLAR 10820 YEN UP 002 16940 MARKS OFF 00015 9311080033 931108 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN ADVERTISING SPENDING IN CHINA COULD TOTAL 139 BILLION THIS YEAR AND SOAR TO 485 BILLION ANNUALLY BY THE END OF THIS DECADE A GOVERNMENT OFFICIAL SAID LIU BAOFU DIRECTOR OF THE ADVERTISING DEPARTMENT OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE SAID CHINA EVENTUALLY PLANS TO CUT FUNDING OF STATERUN AD AGENCIES WHICH DOMINATE THE INDUSTRY IN EFFORTS TO WEED OUT LESS PROFESSIONAL ONES HOPING TO CASH IN ON CHINA'S RAPID ECONOMIC GROWTH FOREIGN AD AGENCIES HAVE ENTERED THE MARKET SINCE THE MID1980S BUT FOUND MANY CHINESE COMPANIES RELUCTANT TO SPEND ON ADVERTISING THOUGH THIS SITUATION HAS BEGUN TO CHANGE ANOTHER BARRIER IS THE GOVERNMENT'S STRICT LIMITS ON NEWSPAPER SPACE AND TELEVISION TIME THAT CAN BE DEVOTED TO ADS FOR BUSINESS TRAVEL TOKYO AT 455 A DAY REMAINS THE WORLD'S MOST EXPENSIVE CITY AMONG 100 STUDIED BY THE MANAGEMENT CONSULTANTS RUNZHEIMER INTERNATIONAL OF ROCHESTER WIS PARIS RANKED A DISTANT SECOND AT 353 A DAY FOLLOWED BY NEW YORK 330 MOSCOW 328 HONG KONG 326 AND LONDON 316 THE EXPENSES ARE BASED ON SINGLE LODGINGS AND THREE MEALS A DAY AT BUSINESSCLASS ESTABLISHMENTS LOWPRICED LOCATIONS INCLUDED LONDON ONTARIO 100 A DAY PANAMA CITY PANAMA 108 BORDEAUX FRANCE 123 COLOMBO SRI LANKA 125 AND QUITO ECUADOR 129 THE PERUVIAN GOVERNMENT SOLD OFF A STATE OIL SHIPPING COMPANY THE SECOND PRIVATIZATION IN A WEEK AS PART OF AN AGGRESSIVE PROGRAM TO SHED 80 ENTERPRISES BEFORE 1995 PETROLERA TRANSOCEANICA SA WAS SOLD FOR 241 MILLION OR 14 MORE THAN THE BIDDING BASE THIS FOLLOWED THE SALE OF BANCO POPULAR'S BOLIVIAN BANK BRANCH FOR 61 MILLION TO OPEN THE ECONOMY TO PRIVATE INVESTMENT AND REDUCE A BLOATED STATE PAYROLL PERU THIS MONTH INTENDS TO SELL OFF PAPER AND CEMENT PLANTS AND A COPPER MINE AND NEXT MONTH WILL PUT THE CENTROMIN MINING COMPANY UP FOR SALE ABOUT HALF OF BRITISH CIVIL SERVANTS STAGED A ONEDAY STRIKE FRIDAY TO PROTEST GOVERNMENT ACTION THEY SAID THREATENS THEIR LIFETIME JOB SECURITY AND PAY ABOUT 250000 MEMBERS OF THE CIVIL AND PUBLIC SERVICES ASSOCIATION WALKED OUT OF AGENCIES RANGING FROM SOCIAL SECURITY TO LEGAL SERVICES AND TOURIST ATTRACTIONS WERE CLOSED INCLUDING THE TOWER OF LONDON WHERE BEEFEATERS LEFT THEIR POSTS OF GUARDING BRITAIN'S CROWN JEWELS THE GOVERNMENT IS PUTTING SOME JOBS UP FOR COMPETITIVE BIDS TO SEE WHETHER THE PRIVATE SECTOR CAN PERFORM SERVICES FOR LESS MONEY CUBAN POLICE ARRESTED FIVE PEOPLE INCLUDING TWO CULTURE MINISTRY EMPLOYEES FOR ALLEGEDLY MAKING FAKE US DOLLARS ON A GOVERNMENT PRINTING PRESS IN HAVANA AND SELLING THE COUNTERFEIT 5 10 AND 20 NOTES FOR CUBAN PESOS DEMAND FOR DOLLARS IS STRONG IN THE COMMUNISTRULED COUNTRY WHERE GOODS ARE IN SHORT SUPPLY AND LITTLE CAN BE BOUGHT FOR PESOS LAST AUGUST IN A BID TO STANCH ILLEGALLY CIRCULATING FOREIGN BANKNOTES THE GOVERNMENT ALLOWED CUBANS TO HOLD AND USE HARD CURRENCY BUT THIS EXPOSED THE PESO'S WEAKNESS AND CREATED FRICTION BETWEEN PEOPLE WITH VARYING ACCESS TO DOLLARS OFFICIALS OF GERMANY'S MAJOR POLITICAL PARTIES AGREED TO A FRAMEWORK FOR PRIVATIZING BUNDESPOST BUSINESSES THE POSTDIENST POSTAL SERVICE THE TELEKOM TELECOMMUNICATIONS BRANCH AND THE POSTBANK THE PLAN WHICH INCLUDES A CONDITION THAT SELLOFF PROCEEDS MUST COVER PENSION LIABILITIES OF THE THREE COMPANIES REQUIRES APPROVAL BY THE PARTIES AND LEGISLATORS A NEW GOVERNMENTCONTROLLED HOLDING COMPANY WOULD RETAIN A MAJORITY SHARE OF THE THREE BUSINESSES FOR FIVE YEARS FOLLOWING PRIVATIZATION PERHAPS STARTING IN 1996 DEPENDING ON THEIR RETURN TO PROFITABILITY MOST PARIS METER MAIDS WHO BEGAN A STRIKE LAST WEEK VOWED TO STAY OFF THEIR BEATS IN THE FRENCH CAPITAL AT LEAST UNTIL NOV 17 UNLESS THEIR DEMANDS ARE MET THREEFOURTHS OF THE 1800 PARKING AGENTS KNOWN AS PERIWINKLES AFTER THEIR SKYBLUE UNIFORMS WALKED OUT LAST TUESDAY THEY WANT PROTECTION AGAINST INSULTS SPITTLE AND ASSAULTS AND CHILDCARE AND TRANSPORTATION BONUSES TO AUGMENT LOW WAGES WHICH START AT 1000 A MONTH THE STRIKE COSTS THE CITY 178000 A DAY IN LOST FINES AND CAUSES TRAFFIC PROBLEMS AS MOTORISTS DOUBLEPARK OR BLOCK DRIVEWAYS IN A GAMBLE THEY WON'T BE SPOTTED BY THE AGENTS REMAINING ON THE JOB SEPARATELY TO HELP TRIM HIGH UNEMPLOYMENT FRANCE WILL ADVANCE ITS HIGHWAY CONSTRUCTION TIMETABLE BY FIVE YEARS POURING 237 BILLION INTO THE ECONOMY OVER THE NEXT DECADE THE WORK WON'T AFFECT FRANCE'S BUDGET DEFICIT AS PROJECTS WILL BE FINANCED THROUGH BORROWING BY PRIVATE COMPANIES THAT WILL OPERATE THE HIGHWAYS AND GET TOLL REVENUE IN EFFECT MAKING USERS PAY THE BASQUE GROUP ETA LINKED TO MORE THAN 700 KILLINGS IN ITS 25YEAR CAMPAIGN FOR INDEPENDENCE FROM SPAIN ISSUED A THREAT AGAINST BUSINESS OWNERS WHO TRY TO ABANDON THE REGION AS MANY HAVE DONE TO ESCAPE EXTORTION A POWER FAILURE PLUNGED ATHENS INTO CHAOS FRIDAY HALTING ELEVATORS IN THE GREEK CAPITAL JAMMING TRAFFIC STALLING TRANSIT SERVICES AND DELAYING AIRLINE FLIGHTS THE BLACKOUT BLAMED ON DIRTY ELECTRIC LINES BECAUSE OF SPARSE RAINFALL ALSO STRUCK THE SURROUNDING ATTICA INDUSTRIAL REGION 9311080032 931108 GREEN POINT SAVINGS BANK REJECTS BID FOR TAKEOVER BY REPUBLIC NEW YORK BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REPUBLIC NEW YORK CORP LAUNCHED WHAT BOTH PARTIES SAY IS THE FIRST ATTEMPTED HOSTILE TAKEOVER OF A MUTUAL SAVINGS BANK GREEN POINT SAVINGS BANK WHOSE BOARD PROMPTLY REJECTED THE OFFER EACH COMPANY ACCUSED THE OTHER'S OFFICERS AND DIRECTORS OF GREED AT DEPOSITORS' EXPENSE IN A LETTER TO THE FLUSHING NY BANK'S BOARD FRIDAY REPUBLIC OFFERED TO MERGE WITH DEPOSITOROWNED GREEN POINT BY PAYING DEPOSITORS A SPECIAL INTEREST PAYMENT OF 100 MILLION THE EQUIVALENT OF ABOUT 2 INTEREST ON GREEN POINT'S 56 BILLION IN DEPOSITS REPUBLIC NEW YORK WOULD RAISE UP TO 700 MILLION IN NEW CAPITAL EQUIVALENT TO GREEN POINT'S APPRAISED VALUE THROUGH A STOCK OFFERING OF ITS SHARES REPUBLIC SAID IT WILL THEN INVEST THE MONEY IN THE PROPOSED GREEN POINT UNIT REPUBLIC A NEW YORK CITYBASED BANK HOLDING COMPANY HAS 205 BILLION IN DEPOSITS AND 38 BILLION IN ASSETS REPUBLIC IS HOPING TO SCUTTLE GREEN POINT'S PLAN TO CONVERT TO STOCK OWNERSHIP THROUGH AN INITIAL PUBLIC OFFERING OF 537 MILLION SHARES PRICED BETWEEN 1110 AND 15 EACH EXPECTED BY DEC 15 DEPOSITORS WILL DECIDE WHETHER TO APPROVE THE IPO ON DEC 10 THEY WOULD BE PERMITTED TO PURCHASE GREEN POINT SHARES AHEAD OF THE OFFERING IN SIMILAR SAVINGS BANK DEALS RECENTLY SHARE PRICES ROSE AS MUCH AS 55 WITHIN A WEEK OF THE OFFERING BUT DEPOSITORS TYPICALLY DON'T BUY SHARES IN STOCKCONVERSION DEALS SAID REPUBLIC PRESIDENT JEFFREY C KEIL INSTEAD MANAGEMENT AND TRUSTEES USUALLY LOAD UP ON THE STOCK AND REAP THE GAINS HE CONTENDED GREEN POINT INSIDERS HAVE CLAIM TO MORE THAN 15 OF THE IPO SHARES THROUGH AN EMPLOYEE STOCK OWNERSHIP PLAN PLUS 10 THROUGH STOCK OPTIONS GREEN POINT OFFICERS AND TRUSTEES COULD REAP ABOUT 200 MILLION IF THE STOCK PERFORMS AS SIMILAR DEALS HAVE THIS YEAR MR KEIL SAID GREEN POINT RETURNED FIRE BY ACCUSING REPUBLIC'S MAJOR SHAREHOLDER EDMOND J SAFRA OF SEEKING A WINDFALL GAIN ON HIS 30 STAKE IF REPUBLIC SUCCEEDS IN MERGING WITH GREEN POINT UNDER ITS TERMS REPUBLIC'S EQUITY WOULD RISE 27 AND ITS EARNINGS WOULD INCREASE 71 FIGURED MARK B COHEN MANAGING DIRECTOR OF ADAMS COHEN SECURITIES INC IN GREAT NECK NY THE LEAD INVESTMENT BANKER ASSEMBLING THE DEAL THE STOCK WOULD APPRECIATE 40 AS A RESULT HE SAID RESULTING IN A GAIN FOR MR SAFRA OF 312 MILLION MR KEIL SAID GREEN POINT DEPOSITORS WOULD HAVE FIRST RIGHTS TO BUY THE NEW REPUBLIC SHARES AND ALSO WOULD BENEFIT FROM ANY APPRECIATION MR COHEN SAID REPUBLIC ISN'T RISKING ANYTHING AND IS GETTING 800 MILLION IN NET WORTH FOR FREE HE CHARACTERIZED THE 100 MILLION INTEREST PAYMENT AS A BRIBE TO DEPOSITORS GREEN POINT SAID ITS LEGAL ADVISERS HAVE DETERMINED THAT THE 100 MILLION FUND ISN'T PERMITTED UNDER NEW YORK LAWS REPUBLIC CLAIMS IT HAS BEEN TOLD OTHERWISE BY STATE REGULATORS MR COHEN NOTED THAT IN SOME MUTUAL SAVINGSBANK CONVERSIONS IN THE 1980S SHARE PRICES FELL SUBSEQUENT TO THE IPO IN A FEW CASES SHAREHOLDERS WERE WIPED OUT HE SAID MR KEIL SAID REPUBLIC WAS FORCED TO RESORT TO HOSTILE MEASURES BECAUSE OF GREEN POINT'S REFUSAL TO CONSIDER ITS OFFER IN HIS LETTER MR KEIL DESCRIBES NUMEROUS ATTEMPTS TO PRESENT REPUBLIC'S PROPOSAL TO GREEN POINT BUT SAYS PHONE CALLS WEREN'T RETURNED MESSENGERS WERE TURNED AWAY AND FAX MACHINES UNPLUGGED DURING TRANSMISSION GREEN POINT SAID IT HAS RECEIVED A NUMBER OF INDICATIONS OF INTEREST TO MERGE WITH BANKS AND THRIFTS IN NEW YORK BUT SAID SUCH DEALS WOULDN'T BE IN THE BEST INTEREST OF GREEN POINT OR ITS DEPOSITORS 9311080031 931108 BUSINESS BRIEF MEGAFOODS STORES INC LOSS FOR 3RD QUARTER IS SEEN WIDER THAN SOME ESTIMATES MEGAFOODS STORES INC SAID IT EXPECTS TO REPORT A THIRDQUARTER LOSS OF ABOUT 60 CENTS A SHARE A WIDER LOSS THAN EXPECTED BY ANALYSTS THE MESA ARIZ COMPANY SAID THE LOSS REFLECTS PRIMARILY THE COST OF OPENING THE 15 TEXANS' WAREHOUSE FOODS STORES IN SAN ANTONIO TEXAS IN THE YEAREARLIER PERIOD MEGAFOODS HAD NET INCOME OF 453000 OR NINE CENTS A SHARE THE COMPANY'S ESTIMATED LOSS IS ALMOST TREBLE THE MEAN 22 CENTASHARE LOSS EXPECTED BY FOUR ANALYSTS TRACKED BY ZACKS INVESTMENT RESEARCH INC WHOSE ESTIMATES RANGED FROM A 30CENTASHARE LOSS TO A 14CENTASHARE LOSS MEGAFOODS STOCK FELL 175 A SHARE FRIDAY TO 925 IN NASDAQ TRADING 9311080030 931108 REVIEW & OUTLOOK EDITORIAL ASIDES ONE MORE TIME WITH THE STATE OF WASHINGTON NOW STUCK WITH GOVERNOR LOWRY'S HIGHER TAXES OREGON STANDS TO REAP INCREASING DIVIDENDS FROM CROSSBORDER CONSUMER TRAFFIC ATTRACTED BY ITS FREEDOM FROM A RETAILSALES LEVY THAT'S IF OREGONIANS REJECT A 5 TAX PLACED ON TOMORROW'S BALLOT BY THE LEGISLATURE WHICH WOULD END THE STATE'S STATUS AS ONE OF FIVE NATIONALLY THAT DOESN'T TAX SALES A MILDER SUCH MOVE IN MONTANA WAS REJECTED BY VOTERS EARLIER THIS YEAR ECONOMIST RICHARD VEDDER ESTIMATES AT LEAST 16000 RETAIL JOBS WOULD BE LOST IF OREGON WERE TO SAY YES THE CIVIC ESTABLISHMENT IS TRYING TO MAKE UP GROUND LOST TO A PROPERTYTAX CUT ENACTED BY THE CITIZENS IN 1990 OREGON HAS BEEN AROUND THIS BEND BEFORE GOING BACK TO THE 1980 DEFEAT OF REP AL ULLMAN CHAIRMAN OF THE WAYS AND MEANS COMMITTEE FOR HIS SUPPORT OF A NATIONAL SALES TAX 9311080029 931108 CITY NATIONAL UNIT ACCORD BEVERLY HILLS CALIF CITY NATIONAL CORP SAID ITS CITY NATIONAL BANK UNIT AGREED TO SELL ALL SIX ASSET POOLS IN ITS ACCELERATED ASSET DISPOSITION PROGRAM TO WHITEHALL STREET REAL ESTATE LIMITED PARTNERSHIP III WHICH IS MANAGED BY GOLDMAN SACHS & CO THE ASSETS WHICH ARE LOANS AND FORECLOSED PROPERTIES WERE VALUED AT 512 MILLION ON THE BANK'S BOOKS AS OF SEPT 30 THE BANK SAID IT EXPECTED TO RECORD A GAIN FROM THE TRANSACTION WHICH WAS AGREED TO BE IN CASH BUT WHICH THE BANK SAID IT MIGHT PARTLY FINANCE CITY NATIONAL SAID THE AMOUNT OF THE GAIN WASN'T YET DETERMINED 9311080028 931108 RENAULT CHIEF ISSUES WARNING ON VOLVO'S VOTE HE SEES END OF COOPERATION BETWEEN TWO CAR FIRMS IF SWEDES REJECT MERGER SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM IT WOULD BE IMPOSSIBLE FOR AB VOLVO AND RENAULT SA TO CONTINUE THEIR LONGSTANDING COOPERATION IF VOLVO SHAREHOLDERS REJECT THE MERGER PROPOSAL OF THE TWO AUTO CONCERNS RENAULT'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER LOUIS SCHWEITZER SAID IN A INTERVIEW IN A SWEDISH NEWSPAPER IT WOULD BE IMPOSSIBLE TO CONTINUE AS BEFORE AS IF THIS WAS JUST A PARENTHESIS MR SCHWEITZER WAS QUOTED AS SAYING IN SVENSKA DAGBLADET OUR COOPERATION DEPENDS ON MUTUAL AGREEMENT AND THE KNOWLEDGE THAT WE HAVE A MUTUAL FUTURE ALL THIS WOULD CHANGE IF SHAREHOLDERS SAID NO MR SCHWEITZER DECLINED TO ELABORATE ON WHAT WOULD HAPPEN IF VOLVO HOLDERS REJECT THE MERGER PROPOSAL AT AN EXTRAORDINARY MEETING DEC 7 BUT SAID HE HOPES THAT SWEDISH OPINION TOWARD THE MERGER WILL TURN BEFORE THEN GROWING OPPOSITION TOWARD THE MERGER AMONG VOLVO'S HOLDERS FORCED THE SWEDISH COMPANY TO POSTPONE THE MEETING FOR A MONTH TO GIVE IT MORE TIME TO PERSUADE SHAREHOLDERS THE MEETING ORIGINALLY HAD BEEN SCHEDULED FOR TOMORROW MR SCHWEITZER ACKNOWLEDGED THAT THE SUDDEN BURST OF OPPOSITION TO THE MERGER IN SWEDEN CAME AS A SURPRISE I THOUGHT IT WAS STRANGE THAT THERE WAS ALMOST NO DEBATE AT ALL WHEN THE AGREEMENT WAS PRESENTED IN SEPTEMBER HE SAID THE SWING IN PUBLIC OPINION SEEN IN THE PAST 15 DAYS CAME AS A SURPRISE NO ONE ASKS ANY LONGER WHETHER THE DEAL IS GOOD FOR THE COMPANIES SHAREHOLDERS STAFF CUSTOMERS ET CETERA OPPOSITION TO THE MERGER IN SWEDEN HAS FOCUSED ON THE ISSUE OF RENAULT'S PRIVATIZATION AND THE FACT THAT THE FRENCH GOVERNMENT WOULD HOLD A SOCALLED GOLDEN SHARE IN THE MERGED COMPANY AFTER PRIVATIZATION MUCH OF THE OPPOSITION ISN'T AGAINST THE MERGER PER SE BUT THE THINKING IS THAT IT SHOULD BE CARRIED OUT AFTER RENAULT HAS BEEN PRIVATIZED HOWEVER MR SCHWEITZER AGREED WITH SWEDISH CRITICS THAT A CLEAR DECISION ON PRIVATIZATION MUST BE MADE BEFORE THE MERGER WE THOUGHT IT WOULD BE ENOUGH WITH THE PARLIAMENTARY DECISION AND OFFICIAL STATEMENTS BUT IT IS CLEAR WE HAVE TO GO FURTHER HE SAID HOWEVER HE ACKNOWLEDGED PROBLEMS INVOLVED IN SETTING A DATE FOR THE PRIVATIZATION BECAUSE THE SHARES MUST BE SOLD WHEN MARKETS ARE WILLING TO BUY AND THAT IS IMPOSSIBLE TO KNOW AHEAD OF TIME HE ALSO DENIED THAT THE DEAL WOULD BE RENEGOTIATED OVER THE NEXT FOUR WEEKS IT IS ONLY A MATTER OF MAKING CERTAIN CLARIFICATIONS HE SAID 9311080027 931108 PACIFIC GOLD SEEKS ACQUISITION BLACK HAWK COLO PACIFIC GOLD CORP SAID IT IS NEGOTIATING AN AGREEMENT WITH WINSTOCK MINING CORP AND CLAY COUNTY HOLDINGS INC UNDER WHICH WINSTOCK AND CLAY COUNTY WOULD MERGE TO FORM A UNIT OF PACIFIC GOLD IN A NEWS RELEASE PACIFIC GOLD SAID WINSTOCK AND CLAY COUNTY OWN A TOTAL OF ABOUT 60 ADJACENT GOLDMINING ACRES IN THE BLACK HAWK AREA PACIFIC GOLD SAID IT IS CONSIDERING PROPOSALS FOR A CASINO OR RESORT TO BE BUILT ON THE PROPERTY WHICH INCLUDES FOUR LOTS ZONED FOR CASINO GAMBLING 9311080026 931108 BUSINESS BRIEF UNITED BISCUITS HOLDINGS PLC BRITISH COMPANY SETS UP JOINT VENTURE IN INDONESIA BRITISH FOOD COMPANY UNITED BISCUITS HOLDINGS PLC SAID IT ESTABLISHED A JOINT VENTURE IN INDONESIA CALLED UBINDO ANEKA BISKUIT UNITED BISCUITS WILL OWN 50 OF THE COMPANY WITH THE OTHER SHAREHOLDER BEING INDOFOOD GROUP INDONESIA'S LARGEST FOOD PRODUCER THE JOINT VENTURE'S PRODUCTS WILL BE MARKETED UNDER UNITED BISCUIT'S KEEBLER BRAND NAME INDONESIA HAS THE WORLD'S FOURTHLARGEST POPULATION WITH 180 MILLION PEOPLE AND IS GROWING AT 4 A YEAR UNITED BISCUITS SAID THE COOKIE MARKET THERE IS SMALL AND UNDERDEVELOPED WITH PERCAPITA CONSUMPTION ONLY 25 OF JAPAN'S 7 OF AUSTRALIA'S AND 4 OF THE UK'S MARKET RESEARCH INDICATES STRONG GROWTH POTENTIAL FOR QUALITY PRODUCTS UNITED BISCUITS SAID 9311080025 931108 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANK SYSTEM 100 MILLION OF NOTES DUE NOV 16 1998 PRICED AT PAR TO YIELD 532 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC HALLMARK HEALTHCARE CORP 80 MILLION OF SENIOR SUBORDINATED NOTES DUE NOV 15 2003 PRICED AT PAR TO YIELD 10625 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON INC ITRON INC INITIAL OFFERING OF THREE MILLION COMMON SHARES PRICED AT 1350 APIECE THROUGH UNDERWRITERS LED BY CS FIRST BOSTON INC FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1647 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE MATURITY OF 178 MONTHS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY UBS SECURITIES INC THE OFFERING SERIES 1645 IS BACKED BY THE AGENCY'S 15YEAR 55 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 615 AND WEIGHTED AVERAGE MATURITY OF 179 MONTHS CASE CORP 4607 MILLION OF AGRICULTURALLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS THE ISSUE CASE EQUIPMENT LOAN TRUST 1993B1 WAS LED BY JP MORGAN SECURITIES CORP THE COLLATERAL CONSISTS OF AGRICULTURAL AND EQUIPMENT RETAIL INSTALLMENT SALES CONTRACTS THE 4423 MILLION IN SENIOR CERTIFICATES WAS PRICED AS 43S AT 9990625 TO YIELD 4386 A 45BASISPOINT SPREAD ABOVE THE TREASURY'S 3875 NOTE OF MARCH 1995 THE CERTIFICATES RATED TRIPLEA BY BOTH MOODY'S AND S&P HAVE AN AVERAGE LIFE OF 132 YEARS THE 184 MILLION IN SUBORDINATE CERTIFICATES RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P WAS PRICED AS 51S AT 99875 TO YIELD 518 AN 80BASISPOINT SPREAD ABOVE THE INTERPOLATED TREASURY TWOYEAR AND THREEYEAR NOTES QUARTERLY PAYMENTS BEGIN FEB 15 1994 CASE IS A UNIT OF TENNECO INC ALPARGATAS SAIC ARGENTINA 60 MILLION OF 9 EUROBONDS DUE NOV 26 1996 AT ISSUE AND REOFFER PRICE 99 VIA SWISS BANK CORP BONDS YIELD 939 A SPREAD OF 490 BASIS POINTS ABOVE WHENISSUED THREEYEAR US TREASURY FEES 1125 PAYABLE SEMIANNUALLY CIE BANCAIRE SA FRANCE TWO BILLION FRENCH FRANCS OF 65 EUROBONDS DUE DEC 3 2004 AT ISSUE AND REOFFER PRICE 9765 VIA CREDIT LYONNAIS BONDS YIELD 681 A SPREAD OF 75 BASIS POINTS ABOVE 55 FRENCH TREASURY OF 2004 FEES 04 SWEDISH EXPORT CREDIT CORP SWEDISH AGENCY 1 BILLION OF FLOATINGRATE EURONOTES DUE FEB 15 1995 AT ISSUE AND REOFFER PRICE 9998 VIA MORGAN STANLEY INTERNATIONAL PAYABLE QUARTERLY AT 01875 POINT BELOW THREEMONTH DOLLAR LONDON INTERBANK OFFERED RATE FEES 00565 9311080024 931108 BUSINESS BRIEF IRVINE CO JURY ORDERS FIRM TO PAY 40 MILLION IN CONTRACT CASE AN ORANGE COUNTY SUPERIOR COURT JURY ORDERED IRVINE CO TO PAY 40 MILLION TO LION COUNTRY SAFARI INC A NOWDEFUNCT FLORIDA WILDANIMAL PARK OWNED BY UNITED LEISURE CORP LANGHORNE PA AFTER NEARLY A DECADE OF LAWSUITS THE JURY CONCLUDED THAT CLOSELY HELD IRVINE A REAL ESTATE DEVELOPER HAD BREACHED CONTRACTS BY BLOCKING LION COUNTRY FROM CONVERTING TO OTHER USES PROPERTY IT HAD LEASED TO OPERATE THE THEME PARK WHICH CLOSED IN 1982 PETER ZEUGHAUSER IRVINE'S GENERAL COUNSEL SAID THE COMPANY WOULD ASK THE JUDGE TO OVERTURN THE JURY'S FINDINGS THE PROCESS WAS COMPLEX AND DIFFICULT TO FOLLOW AND IT MAY HAVE CONFUSED THEM HE SAID 9311080023 931108 SKANDIA PLANS SALE OF LONGHELD STAKE TO FORTIFY ITSELF FOR EUROPEAN GROWTH BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM SWEDEN'S SKANDIA INSURANCE CO MUSTERING FINANCIAL CLOUT FOR AN EXPANSION BLITZ AGREED TO SELL A 26 STAKE IT HAS HELD IN GERMAN INSURER HAMBURGMANNHEIMER VERSICHERUNGS AG FOR MORE THAN 50 YEARS SKANDIA'S HOLDING IS TO BE ACQUIRED FOR 450 MILLION MARKS 2653 MILLION BY MUNICH REINSURANCE CO BOOSTING MUNICH RE'S STAKE IN HAMBURGMANNHEIMER TO 80 FROM 54 THE TRANSACTION MUST STILL BE APPROVED BY HAMBURGMANNHEIMER'S DIRECTORS ACCORDING TO BJOERN WOLRATH SKANDIA'S CHIEF EXECUTIVE OFFICER THE SALE WILL GENERATE A ONETIME GAIN OF 19 BILLION SWEDISH KRONOR 2324 MILLION BOOSTING SKANDIA'S NET ASSET VALUE 10 BASED ON FIGURES FROM THE END OF THE FIRSTHALF THE COMPANY HAD A FIRSTHALF NET ASSET VALUE OF 1319 BILLION KRONOR OR 172 KRONOR 21 CENTS A SHARE AND THE SALE WOULD INCREASE THAT FIGURE BY 134 BILLION KRONOR OR 17 KRONOR A SHARE HOWEVER INCLUDING UNREALIZED GAINS IN VALUE OF ASSETS THROUGH MIDAUGUST AS WELL AS PROFORMA EFFECTS OF THE HAMBURGMANNHEIMER SHARE SALE MR WOLRATH SAID SKANDIA'S CURRENT NET ASSET VALUE IS ACTUALLY 1555 BILLION KRONOR OR 203 KRONOR A SHARE UP 37 SO FAR THIS YEAR SELLING THE HAMBURGMANNHEIMER HOLDING IS THE BOLDEST STEP YET IN A STRATEGIC ABOUTFACE ORDERD BY MR WOLRATH LATE LAST YEAR AT THAT TIME A SEVERE FINANCIAL CRISIS IN SWEDEN PLUS EXCEPTIONALLY HEAVY INTERNATIONAL INSURANCECLAIM COSTS SENT SKANDIA TO HUGE LOSSES ITS DIRECTORS DECIDED AGAINST PAYING A DIVIDEND FOR 1992 THE FIRST SUCH OMISSION IN THE COMPANY'S 137YEAR HISTORY MR WOLRATH'S PRESCRIPTION FOR RECOVERY INVOLVED A SHARP REDUCTION OF RISK LEVELS PRIMARILY OUTSIDE ITS LIFEREINSURANCE OPERATIONS TO THAT END GREAT STATES INSURANCE CO A CALIFORNIABASED UNIT SPECIALIZING IN WORKERS' COMPENSATION INSURANCE WAS SOLD EARLY THIS YEAR NET PREMIUM INCOME FROM OPERATIONS OTHER THAN LIFE REINSURANCE EXCLUDING THE US WAS CUT 51 IN THE FIRST HALF AND NET PREMIUM INCOME FROM US NONLIFE OPERATIONS ALSO FELL 52 DESPITE HEFTY RATE INCREASES AND CURRENCY FLUCTUATIONS THAT BALLOONED PREMIUM INCOME SKANDIA PLANS TO REMAIN ACTIVE IN A HANDFUL OF SPECIALIZED NICHES SUCH AS AVIATION UNDERWRITING AND AUTO INSURANCE MR WOLRATH ALSO DISCLOSED FRIDAY THAT ITALIAN NONLIFE UNITS WHICH HAVE PILED UP BIG LOSSES SINCE BEING ACQUIRED A FEW YEARS AGO NOW OPERATE IN THE BLACK EQUALLY IMPORTANT TO MR WOLRATH'S BLUEPRINT FOR THE FUTURE IS SHORING UP SKANDIA'S TRADITIONAL LEADERSHIP POSITION IN SCANDINAVIA AND GRABBING A CHUNK OF EUROPE'S FASTGROWING LIFEINSURANCE BUSINESS ACQUISITIONS IN THE LATE 1980S HELPED SKANDIA BUILD A PANSCANDINAVIAN OPERATING BASE MR WOLRATH SAID MR WOLRATH ALSO SAID HE ENVISIONS FURTHER GROWTH ACROSS EUROPE AN OPPORTUNITY SPAWNED BY SWEEPING DEREGULATION SCHEDULED TO TAKE EFFECT JULY 1 1994 AMONG EUROPEAN COMMUNITY MEMBER COUNTRIES EC RULES WILL ALLOW INSURERS UNFETTERED ACCESS TO ALL MARKETS CREATING THE POSSIBILITY OF TRUE CROSSBORDER OPERATIONS 9311080022 931108 FEAR OF GROWTH ECONOMIC GAINS SPOOK BOND BUYERS BUT RISK OF INFLATION IS LOW IN FACT SOME EXPERTS THINK BIGGER PERIL IS WEAKNESS WHEN TAX RISE KICKS IN BENTSEN'S MORTGAGERATE BET BY WALL STREET JOURNAL STAFF REPORTERS CONSTANCE MITCHELL FORD ANITA RAGHAVAN AND DAVID WESSEL TALK ABOUT NERVOUS THE ECONOMY MERELY FLEXES SOME LONGUNUSED MUSCLES AND INVESTORS FALL ALL OVER THEMSELVES HEADING FOR THE EXITS NO DOUBT ABOUT IT THE ECONOMY IS PUTTING ON A MODEST SHOW OF STRENGTH CARS AND HOUSES ARE SELLING BETTER SHOPPERS ARE LOOSENING THEIR PURSE STRINGS AND MORE PEOPLE ARE BEING PUT TO WORK IF THIS KEEPS UP ECONOMISTS PREDICT THE ECONOMY WILL GROW AT AN ANNUAL RATE OF BETWEEN 3 AND 4 IN THE CURRENT QUARTER THE BEST SINCE A BURST OF GROWTH IN THE LAST QUARTER OF 1992 BUT WITH LONGTERM BOND PRICES AT LOFTY LEVELS INTEREST RATES AT THEIR LOWEST SINCE THE TREASURY BEGAN SELLING 30YEAR BONDS IN 1977 AND STOCK PRICES NEAR RECORD HIGHS EARLY EVIDENCE OF RENEWED GROWTH SEEMED LIKE THE LAST THING INVESTORS WANTED TO SEE LAST WEEK TO SOME IT CONJURED UP VISIONS OF TIGHT SUPPLIES OF GOODS AND SERVICES RISING PRICES AND A FEDERAL RESERVE ONLY TOO WILLING TO FIGHT INFLATION BY RAISING INTEREST RATES TO SLOW AN OVERHEATING ECONOMY THE RESULT A STARTLING WEEKLONG SELLOFF IN THE BOND MARKET AND A TWODAY PLUNGE IN STOCK PRICES SUDDENLY INTEREST RATES WERE RISING AND STOCKS LOOKED AS IF THEY WERE TEETERING ON THE EDGE OF A BEAR MARKET WHAT IS SO AMAZING TO ME IS THAT MARKET PSYCHOLOGY TURNED SO QUICKLY ON SUCH A SMALL PICKUP IN GROWTH MARVELS ROBERT HORMATS VICE CHAIRMAN OF GOLDMAN SACHS INTERNATIONAL BUT IF YOU WERE ONE OF THE WORRIED ONES LAST WEEK PERHAPS YOU SHOULD RELAX A BIT FEW EXPERTS BELIEVE THAT ANY OF THE VISIONS OF DOOM ARE LIKELY TO COME TO PASS ANYTIME SOON MOST SAY ECONOMIC GROWTH MAY IMPROVE BUT IT IS UNLIKELY TO BE ROBUST BY ANY MEASURE INFLATION ISN'T AN ISSUE THERE ARE TOO MANY RESTRAINTS TO PREVENT PRICES FROM RISING SHARPLY THAT MEANS THAT THE FED ISN'T APT TO TAKE STEPS TO RESTRAIN THE ECONOMY THAT INTEREST RATES WILL PROBABLY REMAIN AT LONGTERM LOWS AND THAT THE STOCK MARKET MAY HAVE ROOM TO POST FURTHER GAINS THE WORRY THAT HAS BEEN ROILING THE MARKETS IS THAT ACCELERATING GROWTH WILL LEAD TO RISING INFLATION SAYS JEFFREY APPLEGATE CHIEF INVESTMENT STRATEGIST AT CS FIRST BOSTON INC THAT'S THE WRONG WORRY RATHER HE AND SOME OTHER ANALYSTS ARGUE THAT INVESTORS SHOULD BE WORRIED THAT A VARIETY OF FACTORS COULD CAUSE THE ECONOMY TO WEAKEN AGAIN EARLY NEXT YEAR MUCH AS IT DID IN THE FIRST PART OF 1993 FOLLOWING THE GROWTH SPURT LATE IN 1992 WE MIGHT SEE STRONGER GROWTH NOW BUT WE DON'T THINK IT'S SUSTAINABLE SAYS MR APPLEGATE NOT ALL THE SELLING LAST WEEK WAS THE RESULT OF INVESTORS FLEEING THE MARKETS IN TERROR INSTEAD SOME OF IT WAS EBULLIENT MONEY MANAGERS CLOSING THE BOOKS A LITTLE EARLY ON WHAT HAS BEEN A TERRIFIC YEAR ESPECIALLY FOR BOND INVESTORS BONDFUND MANAGERS ARE HAPPY TO POST ANNUAL RETURNS OF 6 TO 8 BUT THROUGH THE FIRST 10 MONTHS OR SO OF 1993 MANY HAD RACKED UP DOUBLEDIGIT GAINS THE PRODUCT OF THE BOND MARKET'S REMARKABLE RALLY THIS YEAR THIS HAS BEEN SUCH A FABULOUS YEAR THAT NOBODY WANTS TO RISK BEING FORCED TO GIVE BACK ALL THOSE PROFITS ESPECIALLY SO LATE IN THE YEAR SAYS BARBARA KENWORTHY A FIXEDINCOME PORTFOLIO MANAGER AT DREYFUS CORP EVEN INVESTORS WHO AREN'T WORRIED ABOUT INFLATION FEEL THEY MUST SELL TO PROTECT THEIR PROFITS AND EVEN THOSE WHO SOLD IN FEAR CAN'T BE BLAMED FOR ACTING HASTILY AFTER ALL THEY HAVE HAD THE FAMILIAR PATTERN OF RECESSION GIVING WAY TO RECOVERY FOLLOWED BY INFLATION AND HIGH INTEREST RATES DRUMMED INTO THEM FOR THE PAST THREE DECADES EVEN AS THE ECONOMY EMERGED FROM ITS LATEST RECESSION IN FITS AND STARTS NERVOUS INVESTORS KEPT THEIR FINGERS ON THE TRIGGER READY TO JUMP SHIP AT THE SLIGHTEST HINT OF INFLATION ONLY AFTER TWO YEARS OF RECOVERY MARKED BY DECLINING INFLATION DID CAUTION FINALLY GIVE WAY TO MILD EUPHORIA AND THIS YEAR'S BONDMARKET RALLY THAT RALLY DROVE LONGTERM INTEREST RATES TO A LOW OF 579 LAST MONTH AND SOME SAY SET THE STAGE FOR LAST WEEK'S SHARP RETREAT IN WHICH THE YIELD ON THE BENCHMARK 30YEAR BOND ROSE TO 620 ON FRIDAY THE MARKET HAD GOTTEN OVERLY EUPHORIC SAYS GOLDMAN SACHS'S MR HORMATS WITH YIELDS THAT LOW INVESTORS WERE WALKING RIGHT ON THE EDGE AND IT DIDN'T TAKE MUCH TO SCARE THEM IT JUST SHOWS THAT IT'S HARD TO SHED 20 YEARS OF INFLATION CONCERNS IN JUST A FEW YEARS IT'S POSSIBLE THE WORST IS OVER FOR BOTH THE BOND AND STOCK MARKETS STOCK PRICES REBOUNDED FRIDAY AFTER A TWODAY SELLOFF THAT TOOK THE DOW JONES INDUSTRIAL AVERAGE FROM A RECORD 369764 ON TUESDAY TO 362498 THURSDAY A 2 LOSS AND LONGTERM BOND PRICES HAVE FALLEN FAR ENOUGH TO BEGIN TO LOOK ATTRACTIVE TO SOME INVESTORS SPIKE THORNE FIXEDINCOME STRATEGIST FOR SCUDDER STEVENS & CLARK INC IN BOSTON SAYS HE IS GETTING READY TO BUY SOME LONGTERM TREASURYS THE MARKET HAS OVERREACTED TO THE ECONOMIC NEWS HE SAYS EVENTUALLY THE SELLERS WILL HAVE TO COME BACK TO THE MARKET BECAUSE THERE AREN'T TOO MANY OTHER PLACES TO PUT THEIR MONEY STILL IT COULD TAKE WEEKS IF NOT MONTHS FOR FINANCIAL MARKETS TO GET BACK ON AN EVEN KEEL AFTER LAST WEEK'S UPSET NOT ONLY WILL INVESTORS BE JUGGLING THEIR PORTFOLIOS TO SHOW THE BEST POSSIBLE RESULTS FOR 1993 THEY WILL ALSO BE SIFTING THE NEARLY CONTINUOUS STREAM OF DATA FROM THE NATION'S STATISTICS MILLS TO TRY TO DISCERN THE LIKELY TRENDS IN THE ECONOMY AND THE MARKETS IN 1994 ABOVE ALL THEY WILL WANT TO KNOW JUST HOW FAST AND LONG THE ECONOMY'S GROWTH RATE CAN KEEP ACCELERATING THE EARLY ANSWER SAY MANY EXPERTS IS NOT LONG THE CHIEF CULPRIT IN THEIR SLOWERGROWTH SCENARIOS IS THE HIGHER TAX BITE THAT MANY AFFLUENT PEOPLE WILL FEEL EARLY NEXT YEAR HIGHER WITHHOLDING RATES BEGINNING JAN 1 WILL BE COMPOUNDED LATER AS TAXPAYERS FIGURE OUT JUST HOW HARD THEY WERE HIT BY THE RETROACTIVE TAX INCREASE THIS YEAR IT'S HARD TO SEE PEOPLE BUYING NEW PONTIACS WHEN YOU HAVE JUST RAISED THEIR TAXES SAYS SCUDDER STEVENS'S MR THORNE BIGGER TAX BURDENS DON'T STIMULATE THE ECONOMY ALTHOUGH THE LATEST INDICATORS SHOW THAT MORE PEOPLE ARE BEING PUT TO WORK LAYOFFS REMAIN A DRAG ON THE ECONOMY PHILIP BRAVERMAN CHIEF ECONOMIST AT DKB SECURITIES CORP THE NEW YORKBASED UNIT OF JAPAN'S DAIICHI KANGYO BANK NOTES THAT LAYOFF ANNOUNCEMENTS BY MAJOR CORPORATIONS IN OCTOBER TOTALED 66800 UP 37 FROM THE ALREADY HIGH 48800 ANNOUNCED IN SEPTEMBER SUCH DISCOURAGING NEWS WILL KEEP A LID ON CONSUMER CONFIDENCE HE SAYS ADDING THAT MUCH OF THE GAIN IN CONSUMER SPENDING IN RECENT WEEKS HAS BEEN THE RESULT OF MIDWESTERNERS REPAIRING FLOOD DAMAGE STILL THERE ARE OPTIMISTS LOOKING FOR SUSTAINED GROWTH WELL INTO 1994 CHARLES CLOUGH CHIEF MARKET STRATEGIST AT MERRILL LYNCH & CO LOOKS FOR THINGS TO KEEP BUBBLING THROUGH THE MIDDLE OF NEXT YEAR THE ECONOMY IS COOKING HE SAYS INTEREST RATES ARE WORKING THEIR MAGIC AND THE DOLLAR IS STILL CHEAP MAKING A BIG DIFFERENCE FOR EXPORTS ELAINE GARZARELLI OF LEHMAN BROTHERS GOES EVEN FURTHER PREDICTING A ROBUST ECONOMIC RECOVERY THAT LASTS ALL THE WAY THROUGH 1994 SHE BASES THIS ROSY OUTLOOK ON THE EFFECT OF FALLING INTEREST RATES OVER THE PAST SEVERAL YEARS CALCULATING THAT FOR EVERY ONEPERCENTAGEPOINT DROP IN LONG RATES THE NATIONAL ECONOMY GETS A 70 BILLION BOOST WE THINK THE ECONOMY IS REALLY STRENGTHENING AND IT'S BECAUSE OF THE REDUCTION IN LONGTERM RATES SHE SAYS THAT'S GOOD NEWS FOR PROFITS FOR PRODUCTIVITY AND FOR PRICING BUT WHAT OF INFLATION AND INTEREST RATES INVESTORS MAY BE WORRIED ABOUT INFLATION BUT THE EXPERTS CAN FIND LITTLE EVIDENCE THAT IT IS A THREAT TO THE ECONOMY OR THE FINANCIAL MARKETS THE CONSUMER PRICE REPORT FOR OCTOBER IS DUE OUT LATER THIS WEEK AND IS EXPECTED TO SHOW THAT PRICES ROSE 06 AFTER A FLAT REPORT FOR SEPTEMBER BUT THE OCTOBER INCREASE WILL HAVE BEEN DUE AT LEAST IN PART TO HIGHER GASOLINE TAXES THAT WENT INTO EFFECT OCT 1 AND IT SHOULDN'T UPSET INVESTORS WHILE THE CPI IS A POPULAR BAROMETER OF INFLATION ECONOMISTS TEND TO RELY MORE ON COMMODITIES PRICES AS A GUIDE FOR INFLATIONARY TRENDS AND THEY ARE QUIET A FAVORITE BAROMETER THE JOURNAL OF COMMERCE INDEX OF 18 RAW INDUSTRIAL COMMODITIES HAS FALLEN MODESTLY OVER THE PAST FEW MONTHS WHILE THE COMMODITY RESEARCH BUREAU INDEX OF 21 COMMODITY FUTURES CONTRACTS HEAVILY WEIGHTED TOWARD FOOD AND AGRICULTURAL PRODUCTS HAS BEEN FLAT FINANCIAL MARKETS' PERCEPTIONS OF INFLATIONARY ACTIVITY HAVE CERTAINLY BEEN RISING OVER THE LAST MONTH AND A HALF SAYS ANIRVAN BANERJI RESEARCH ECONOMIST AT COLUMBIA UNIVERSITY'S CENTER FOR INTERNATIONAL BUSINESS CYCLE RESEARCH BUT COMMODITIES AREN'T CORROBORATING THIS EVEN GOLD INVESTORS WHO PRAY FOR HIGH INFLATION TO MAKE THEIR GOLD HOLDINGS MORE VALUABLE ADMIT THAT INFLATION JUST ISN'T IN THE FORECAST WHILE GOLD PRICES ENJOYED ONE POWERFUL RALLY EARLIER THIS YEAR AND ARE RISING STEEPLY NOW THE PRICE HAS NOTHING TO DO WITH US INFLATION AND GLOOM AND DOOM CONTENDS JAMES ULYSSES BLANCHARD III A NEW ORLEANS PRECIOUSMETALS DEALER AND NEWSLETTER PUBLISHER INSTEAD HE SAYS IT IS THE RESULT OF RISING DEMAND IN EMERGING NATIONS WHERE OWNERSHIP OF GOLD HAS A LONG TRADITION AND IS A HEDGE AGAINST THE DEVALUATION OF LOCAL CURRENCIES AND IF INFLATION ISN'T RISING INTEREST RATES PROBABLY WON'T EITHER INDEED SKEPTICS MIGHT TAKE A CUE FROM TREASURY SECRETARY LLOYD BENTSEN HE RECENTLY REFINANCED HIS MORTGAGE WITH A VARIABLERATE LOAN HARDLY A STRATEGY TO ADOPT IF ONE EXPECTS RATES TO RISE I THINK YOU'RE GOING TO SEE INTEREST RATES RELATIVELY LOW EVEN THOUGH YOU'VE SEEN A LITTLE UPTICK HERE SAYS MR BENTSEN NOTING THAT LOW RATES IN THE US HAVE PUT US IN A POSITION WHERE WE'RE FAR MORE COMPETITIVE THAN WE USED TO BE WITH CAPITAL COSTS IN JAPAN AND MUCH MORE COMPETITIVE WITH RATES IN GERMANY THAN WE WERE JUST A FEW MONTHS AGO OF COURSE THE FEDERAL RESERVE HAS A LOT TO SAY ABOUT WHAT HAPPENS TO SHORTTERM INTEREST RATES WHICH IT CAN INFLUENCE DIRECTLY BY MANIPULATING THE FEDERAL FUNDS RATE THE RATE BANKS CHARGE EACH OTHER FOR OVERNIGHT LOANS WITH THE FEDERAL FUNDS RATE AT 3 THERE ISN'T MUCH QUESTION THAT THE CENTRAL BANK'S NEXT MOVE WILL BE TO RAISE RATES BUT IT ISN'T AT ALL CLEAR WHEN THAT MIGHT OCCUR FED OFFICIALS ARE KEENLY AWARE THAT LOW INTEREST RATES ARE THE ONLY TOOL THE GOVERNMENT HAS TO KEEP THE ECONOMY GOING AND THEY INSIST THAT THEY WON'T AS ONE PUTS IT PUNISH GROWTH AS LONG AS INFLATION REMAINS DOCILE AT THE SAME TIME FED CHAIRMAN ALAN GREENSPAN HAS VOWED NOT TO LET INFLATION ACCELERATE WHILE SOME FED WATCHERS SUSPECT THAT THE CENTRAL BANK'S POLICY MAKERS WHO MEET NEXT WEEK MAY VOTE TO CHANGE MONETARY POLICY FROM THE CURRENT NEUTRAL STANCE TO A TILT TOWARD HIGHER SHORTTERM RATES EITHER THEN OR AT THE NEXT MEETING IN LATE DECEMBER OTHERS ARGUE THAT SUCH A MOVE IS UNLIKELY WHILE A TILT DOESN'T MEAN A RATE RISE IS IMMINENT IT DOES SUGGEST THE FED IS GETTING MORE CAUTIOUS AND COULD ALARM FINANCIAL MARKETS EVEN TILTING IS SENDING A SIGNAL AND I DON'T THINK THEY WANT TO RISK WEAKENING WHAT LITTLE GROWTH WE ALREADY HAVE SAYS GOLDMAN SACHS'S MR HORMATS ALL THIS SUGGESTS THAT THE BOND MARKET WILL STABILIZE AND THAT LONGTERM INTEREST RATES MAY EVEN FALL ONCE AGAIN THAT ALONE WOULD HELP STOCK PRICES RESUME THEIR CLIMB FALLING INTEREST RATES HAVE BEEN A MAJOR FACTOR IN THE THREEYEAR BULL MARKET THAT STOCKS HAVE ENJOYED BUT TO REALLY POWER STOCKS HIGHER INVESTORS ARE GOING TO WANT TO SEE SUSTAINED GROWTH IN PROFITS THE SLUGGISH ECONOMY FORESEEN BY MANY ANALYSTS MIGHT NOT SEEM LIKE THE IDEAL ENVIRONMENT FOR RISING PROFITS YET A LITTLENOTICED REPORT LAST WEEK SHOWED THAT PRODUCTIVITY ROSE A POWERFUL 39 IN THE THIRD QUARTER REINFORCING THE NOTION THAT US CORPORATIONS ARE SUCCEEDING IN THEIR EFFORTS TO INCREASE EFFICIENCY AND BECOME MORE COMPETITIVE IT MEANS YOU'RE CREATING MORE OUTPUT WITH FEWER WORKERS AND THUS YOU ARE CREATING WEALTH EXPLAINS CS FIRST BOSTON'S MR APPLEGATE TO THE EXTENT THAT THE STOCK MARKET REFLECTS NATIONAL WEALTH THAT'S A DEFINITE POSITIVE FOR STOCKS LEST ALL THIS UPBEAT TALK LULL ONE INTO COMPLACENCY THERE IS A HAZARD LURKING OUT THERE THAT COULD UNDO IT ALL THE NOV 17 HOUSE VOTE ON THE NORTH AMERICAN FREE TRADE AGREEMENT WHILE SOME ECONOMISTS AND ANALYSTS PLAY DOWN THE IMPORTANCE OF THE PROPOSED TREATY OTHERS SAY A REFUSAL TO RATIFY IT WOULD SEND DANGEROUS SIGNALS TO INVESTORS A DEFEAT OF NAFTA WOULD SEND A MESSAGE THAT THERE IS A PROTECTIONIST MAJORITY IN THE HOUSE OF REPRESENTATIVES SAYS DAVID SHULMAN CHIEF STRATEGIST AT SALOMON BROTHERS INC IT WOULD BE DEFINED AS A VOTE FOR MORE INEFFICIENCIES IN THE ECONOMY AND HIGHER PRICES NEITHER OF WHICH WOULD BE GOOD FOR FINANCIAL MARKETS GOLDMAN SACHS'S MR HORMATS EXPECTS INVESTORS TO BEGIN THIS WEEK TAKING A CLOSER LOOK AT THE IMPLICATIONS OF A POSSIBLE DEFEAT OF NAFTA NOW THAT THE VOTE IS COMING UP SOON THE MARKETS ARE GOING TO HAVE TO START THINKING ABOUT IT HE SAYS IT COULD BE THE ACHILLES' HEEL FOR THE FINANCIAL MARKETS 9311080020 931108 FOR GATT OFFICIALS TALKING ONLY STOPS IF MOUTHS ARE FULL AFTER SEVEN YEARS OF DICKERING OVER TRADE DOUBTS ARISE ABOUT MEETING DEADLINE BY LAWRENCE INGRASSIA STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA THE MALAYSIANS HUDDLED WITH THE AMERICANS THE SOUTH KOREANS MET WITH THE NEW ZEALANDERS LATER IN THE DAY THE AUSTRALIANS GOT TOGETHER WITH THE INDIANS AND THE EUROPEANS GATHERED WITH THE MALAYSIANS WHILE THE NEW ZEALANDERS PARLEYED WITH THE THAIS AMONG OTHERS WITH BULGING BRIEFCASES TRADE NEGOTIATORS FROM AROUND THE GLOBE SCURRIED IN AND OUT OF ROOMS PAST AN EXHIBIT OF PAINTINGS OF NUDE WOMEN BY WOMEN ARTISTS WHAT WAS DISCUSSED BEHIND THE CLOSED DOORS NOBODY WANTS TO SAY PERHAPS FOR GOOD REASON THEY MEET AND THEY MEET AND THEY MEET AND AFTER THEY MEET THEY SAY THEY MADE PROGRESS EXPLAINS AN OBSERVER BUT FRANKLY IN MANY CASES THERE'S NOT MUCH PROGRESS WELCOME TO GATT THE GENERAL AGREEMENT ON TARIFFS AND TRADE ALSO KNOWN AS THE GENERAL AGREEMENT TO TALK AND TALK FOR SEVEN YEARS 10 OR 11 COUNTING THE PRENEGOTIATION NEGOTIATIONS DIPLOMATS HAVE COME HERE TO REGULATE TRADE FROM BOTSWANA TO BELIZE IN EVERYTHING FROM BARBED WIRE TO BOAR BRISTLES NOT TO MENTION WINING AND DINING IN HAUTE CUISINE EATERIES AND STAYING AT PRICEY HOTELS NOW AFTER TALKING MUCH AND DOING LITTLE A DEC 15 DEADLINE FOR REACHING AN AGREEMENT IS FAST APPROACHING AND FROM GATT'S HEADQUARTERS ON THE SHORES OF PICTURESQUE LAKE LEMAN DIRE WARNINGS ARE EMANATING WITHOUT AN ACCORD ECONOMIC WARS WILL BREAK OUT AROUND THE GLOBE USEUROPEAN RELATIONS WILL DETERIORATE THE FUTURE OF INTERNATIONAL TRADE SAYS PETER SUTHERLAND GATT'S DIRECTORGENERAL IS ON A KNIFE EDGE THEN AGAIN MAYBE NOT TWO DEADLINES ALREADY HAVE BEEN MISSED AND THE TALKS EXTENDED SOME TRADE EXPERTS INSIST THIS DATE IS FOR REAL BUT OTHERS HAVE HEARD IT ALL BEFORE I DON'T THINK ONE SHOULD DESPAIR SAYS JEANPIERRE BRUNET A FORMER FRENCH DIPLOMAT PREDICTING THE DEADLINE WON'T BE MET BUT THAT REASONS WILL BE FOUND TO EXTEND THE DISCUSSIONS YET AGAIN INDEED THIS CITY WITH ITS VIEW OF THE ALPS ISN'T A BAD PLACE TO BE DEADLOCKED IN ADDITION TO 400 PERMANENT GATT STAFFERS WHO HELP NEGOTIATE AGREEMENTS DRAW UP RULES AND RESOLVE DISPUTES DELEGATES FROM MANY COUNTRIES LIVE HERE FULLTIME WHILE HUNDREDS OF OTHERS SHUTTLE IN AND OUT NOT ONLY ISSUES OF SUBSTANCE BUT OF SUSTENANCE ARE ON THE TABLE AFTER GATHERING AT THE INTERCONTINENTAL HOTEL HERE RECENTLY AGRICULTURE NEGOTIATORS FACED DIFFICULT CHOICES WOULD IT BE CHATEAUBRIAND WITH BEARNAISE SAUCE BRAISED PIGEON WITH CELERY TURNIPS AND ONIONS OR SAUTEED LANGOUSTINES WITH FENNEL AND ANISEED WE'RE THE DORMITORY OF THE INTERNATIONAL COMMUNITY BOASTS HOTEL MANAGER HERBERT A SCHOTT WHOSE ESTABLISHMENT RENTS ROOMS FOR 250 TO 1200 A NIGHT ANOTHER FAVORITE IS LE CYGNE A RESTAURANT AT THE NOGA HILTON THAT FEATURES NOT ONE BUT SIX DESSERT CARTS FOR PRIVACY MANY DELEGATES PREFER HOTEL DU LAC IN COPPET A SHORT RIDE FROM TOWN WHICH IN THE FALL OFFERS VENISON WITH WILD MUSHROOMS AND PARTRIDGE WITH RAISINS OF COURSE IT CAN GET OLD I HAD A THREEWEEK PERIOD WHERE I HAD A BUSINESS LUNCH EVERY SINGLE DAY AND DINNER THREE TIMES A WEEK SAYS AN AMERICAN DELEGATE THE HISTORY OF THE URUGUAY ROUND SO NAMED TRIVIA BUFFS BECAUSE IT WAS LAUNCHED IN PUNTA DEL ESTE SOUNDS A BIT LIKE THE PERILS OF PAULINE THE TALKS ALREADY HAVE SET THE DUBIOUS RECORD OF SURPASSING THE SIX AND FIVEYEAR PERIODS OF THE TWO PREVIOUS ROUNDS WITH THE NEGOTIATIONS BOGGED DOWN AND WITH REGIONAL TRADING BLOCS EMERGING AROUND THE WORLD ECONOMIST LESTER THUROW DECLARED SEVERAL YEARS AGO GATT IS DEAD THE 115 NATIONS IN THE NEGOTIATIONS AT FIRST HOPED TO END THEM IN DECEMBER 1990 A HAPLESS BRITISH JOURNALIST ACTUALLY FILED A STORY NEAR THE END OF THE FIRST DEADLINE SAYING AN AGREEMENT HAD BEEN REACHED THEN HEADED OFF TO DINNER AT WHICH POINT THE PACT FELL APART THEN THEY WERE SUPPOSED TO END IN EARLY 1993 EVEN PARTICIPANTS CLAIM BURNOUT I FEEL LIKE I'VE BEEN DOING THIS FOR AGES NOW LAMENTS DAVID HARTRIDGE DIRECTOR OF THE SERVICES DIVISION FEW PEOPLE QUESTION GATT'S SIGNIFICANCE IN FOSTERING WORLD TRADE BY NEGOTIATING LOWER TARIFFS AND OPENING MARKETS SINCE THE AGENCY BEGAN IN THE LATE 1940S WORLD TRADE HAS EXPANDED SIGNIFICANTLY AND THE FAILURE OF THE PRESENT TALKS WOULD HAMPER FURTHER GROWTH BUT FEW ORGANIZATIONS CAN MATCH GATT ON THE SNOOZE SCALE I HAVE A GREAT FEAR OVER WHAT WILL HAPPEN IF GATT COLLAPSES SAYS FREDERICK ABBOTT A TRADE EXPERT AND A VISITING FELLOW AT THE MAX PLANCK INSTITUTE IN HEIDELBERG GERMANY BUT HE SAYS IT IS ONE OF THE SUBJECTS MOST LIKELY TO PUT A LARGE AUDIENCE ASLEEP THAT SOMETIMES INCLUDES THOSE AT GATT MEETINGS IT CERTAINLY DOES HAPPEN CONCEDES ADRIAN OTTEN A GATT DIRECTOR THOUGH HE SAYS IT IS MORE FROM EXHAUSTION THAN BOREDOM EVEN HERE GATT HAS AN IDENTITY CRISIS WHAT IS GATT A CLERK AT A COSMETICS SHOP ACROSS THE STREET FROM GATT HEADQUARTERS IS ASKED I DON'T KNOW SHE REPLIES HOPING TO POLISH ITS IMAGE GATT SELLS A VIDEO TITLED URUGUAY ROUND HELPING THE WORLD GROW FOR 24 PLUS GATT WATCHES 40 TSHIRTS 12 AND SWEAT SHIRTS 34 BUT GETTING THE MASSES TO UNDERSTAND GATT WON'T BE EASY FOLKS HERE TALK IN A LANGUAGE LOADED WITH GOBBLEDYGOOK SUCH AS AUTOMATICITY TARIFFICATION AND PLURILATERAL AND THEN THERE IS THE JOSTLEDSCRABBLEBOARD USE OF ACRONYMS CPS AND TNC GNG AND GNS MFN AND MTN NOT TO BE CONFUSED WITH NTM TRIPS AND TRIMS NME AND MSA AND FOGS SOME OF THESE SUBJECTS ARE SO ARCANE THAT ONLY EXPERTS CAN UNDERSTAND THEM GRUMBLES A FORMER GATT OFFICIAL IN THEORY THE NEGOTIATIONS ARE PRETTY SIMPLE YOU LOWER YOUR TARIFFS ON WIDGETS AND I'LL LOWER MINE ON GADGETS EXPLAINS JULES KATZ FORMER DEPUTY US TRADE REPRESENTATIVE IN REALITY THE TALKS WHICH HAVE FOCUSED ON INDUSTRIAL PRODUCTS HAVE BECOME MORE COMPLICATED BECAUSE TRADE IN SERVICES INTELLECTUAL PROPERTY AND INVESTMENTS IS BEING DISCUSSED FOR THE FIRST TIME THAT IS WHY THE ROUND IS TAKING SO LONG GATT OFFICIALS SAY ANOTHER PROBLEM OTHERS CONTEND IS THAT DESPITE ALL THE PONTIFICATING ABOUT THE VIRTUES OF FAIR TRADE MOST COUNTRIES OPERATE ON A BASIC THEORY EXPORTS ARE GOOD IMPORTS ARE BAD SO EVERYONE HOLDS OUT FOR SOMETHING VALUABLE WHILE GIVING UP SOMETHING WORTHLESS MAJOR INDUSTRIAL NATIONS FOR INSTANCE HAVE OFFERED TO OPEN THEIR DOORS TO IMPORTS OF ELECTRONIC GOODS FROM URUGUAY THERE IS JUST ONE PROBLEM NOTES MIGUEL BERTHET URUGUAY'S AMBASSADOR TO GATT URUGUAY DOESN'T MAKE MANY ELECTRONIC GOODS OF COURSE SOMETIMES EVEN WHEN A COUNTRY THINKS IT GETS WHAT IT WANTS IT DOESN'T IN THE 1960S AUSTRIA GOT THE US TO LOWER TARIFFS ON SKI BOOTS LEATHER ONES NOT LONG BEFORE THE ADVENT OF PLASTIC BOOTS MADE THEM OBSOLETE THREE OR FOUR YEARS AFTER THAT THE TARIFF CUT WAS WORTHLESS NOTES ANDREW STOLER DEPUTY CHIEF OF THE US MISSION TO GATT SIMILARLY YEARS AGO THE US WON AN ACCORD TO REDUCE TARIFFS ON TRANSISTORS ONLY TO FIND THAT MANY WERE SOON REPLACED BY COMPUTER CHIPS COMPLICATING MATTERS NOTES MR STOLER IS THE HORSETRADING THE US WANTS TO REDUCE BARRIERS IN FINANCIAL SERVICES SO ITS BANKS CAN DO MORE BUSINESS OVERSEAS ASIAN COUNTRIES SAY OK BUT ONLY IF TARIFFS ON COMPUTER CHIPS AND SEMICONDUCTORS ARE REDUCED BUT THE EUROPEAN COMMUNITY IS LOATH TO GO ALONG WITH THAT BECAUSE IT MIGHT HURT DUTCH AND FRENCH INDUSTRY MEANWHILE INDIA AND PAKISTAN WILL AGREE TO NEW RULES GOVERNING INTELLECTUALPROPERTY RIGHTS ONLY IF BARRIERS TO THEIR TEXTILE EXPORTS ARE DROPPED WHICH US COMPANIES ARE FIGHTING AND THEN THERE IS THE DISPUTE OVER EC AGRICULTURAL SUBSIDIES AND FRANCE'S EFFORTS TO PROTECT ITS CULTURE BY RESTRICTING IMPORTS OF US MOVIES SO WHAT IS THE ANSWER TO SPEEDING THINGS UP A CHANGE IN LOCATION MIGHT HELP SUGGESTS MR ABBOTT THE TRADE EXPERT IF THE TALKS WERE IN TRIPOLI YOU'D PROBABLY HAVE A QUICKER RESOLUTION 9311080019 931108 BUSINESS BRIEF SHAWMUT NATIONAL AGREES TO PURCHASE GATEWAY FINANCIAL HARTFORD CONN SHAWMUT NATIONAL CORP AGREED TO ACQUIRE GATEWAY FINANCIAL CORP FOR ABOUT 152 MILLION IN STOCK THE AGREEMENT IS PART OF A PUSH BY BIGGER NEW ENGLAND BANKS TO BOLSTER THEIR ASSETS AND RETAIL OPERATIONS AFTER SURVIVING A PERIOD OF REGULATORY SCRUTINY OVER THEIR FINANCIAL HEALTH SHAWMUT HAS ALSO AGREED TO ACQUIRE PEOPLE'S BANCORP OF WORCESTER INC AND NEW DARTMOUTH BANK OF MANCHESTER NH FOR A TOTAL OF ABOUT 323 MILLION IN STOCK UNDER THE LATEST AGREEMENT GATEWAY STOCKHOLDERS WILL RECEIVE 0559 SHARE OF SHAWMUT COMMON FOR EACH SHARE HELD THE AGREEMENT ALLOWS GATEWAY TO TERMINATE THE TRANSACTION IF SHAWMUT'S AVERAGE STOCK PRICE FOR A 10DAY PERIOD PRECEDING THE TRANSACTION FALLS BELOW 1870 GATEWAY FINANCIAL NORWALK CONN HAS ABOUT 12 BILLION IN ASSETS AND 28 BRANCHES IN FAIRFIELD COUNTY CONN SHAWMUT SAID IT EXPECTS THE ACQUISITION SCHEDULED TO CLOSE IN THE FIRST HALF OF 1994 WILL ADD TO PERSHARE EARNINGS IN 1995 SHAWMUT WITH ABOUT 935 MILLION SHARES OUTSTANDING PLANS TO ISSUE 75 MILLION SHARES TO ACQUIRE GATEWAY'S APPROXIMATELY 134 MILLION SHARES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY SHAWMUT CLOSED AT 2125 UP 1 GATEWAY SLIPPED 125 CENTS TO 10625 IN NASDAQ STOCK MARKET TRADING IN CONNECTION WITH THE AGREEMENT WHICH IS SUBJECT TO REGULATORY AND OTHER APPROVALS GATEWAY GRANTED SHAWMUT AN OPTION TO ACQUIRE UP TO 199 OF GATEWAY'S OUTSTANDING STOCK AT 1075 A SHARE UNDER CERTAIN CONDITIONS SHAWMUT NATIONAL HAD 269 BILLION IN ASSETS AS OF SEPT 30 THE BANKING COMPANY HAS MORE THAN 300 BRANCHES IN MASSACHUSETTS CONNECTICUT AND RHODE ISLAND 9311080018 931108 CLOSED END FUNDS FRIDAY NOVEMBER 5 1993 BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN CCHICAGO 9311080017 931108 JAPAN'S KOMATSU LTD REPORTS PRETAX PROFIT FELL 41 IN FISCAL HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO KOMATSU LTD A JAPANESE MAKER OF CONSTRUCTION MACHINERY REPORTED A 41 DECLINE IN UNCONSOLIDATED PRETAX PROFIT FOR ITS FISCAL FIRST HALF ENDED SEPT 30 AND CITED JAPAN'S WEAK ECONOMY AND STRONG YEN PRETAX PROFIT FELL TO 705 BILLION YEN 652 MILLION FROM A YEAREARLIER 1202 BILLION YEN ON A 64 DECLINE IN SALES TO 24314 BILLION YEN FROM 25969 BILLION YEN EARNINGS PER SHARE DROPPED 31 TO 353 YEN 33 CENTS FROM A YEAREARLIER 509 YEN WITH JAPAN'S ECONOMY STILL SHOWING NO SIGNS OF A REBOUND IN THE FISCAL SECOND HALF KOMATSU SHAVED ITS FULLYEAR SALES FORECAST TO 520 BILLION YEN DOWN 19 FROM THE 530 BILLION YEN IT PREDICTED IN AUGUST HOWEVER IT LEFT UNCHANGED ITS FULLYEAR PROFIT FORECASTS KOMATSU EXPECTS TO POST A FULLYEAR PRETAX PROFIT OF 16 BILLION YEN DESPITE THE UNPROMISING ECONOMIC OUTLOOK KOMATSU SAID JAPANESEGOVERNMENT STIMULUS PACKAGES SHOULD HELP THE DOMESTIC CONSTRUCTIONEQUIPMENT MARKET TO A MILD RECOVERY DURING ITS SECOND HALF KOMATSU SAID ITS LATEST RESULTS WERE HIT BY A SHARP DECLINE IN PRIVATESECTOR CONSTRUCTION PROJECTS AND BY DELAYS IN GETTING PUBLICSECTOR PROJECTS UNDER WAY DESPITE A BOOST IN THE GOVERNMENT'S PUBLICWORKS SPENDING AND THE YEN'S SURGE FROM ROUGHLY 125 TO THE DOLLAR IN FEBRUARY TO A HIGH OF 1004 TO THE DOLLAR IN AUGUST SHARPLY CUT INTO THE VALUE OF OVERSEAS EARNINGS KOMATSU'S CONSTRUCTIONEQUIPMENT SALES DROPPED 44 TO 19171 BILLION YEN OR 79 OF THE COMPANY'S OVERALL SALES OF THAT TOTAL DOMESTIC SALES FELL 09 WHILE OVERSEAS SALES DROPPED 98 THE COMPANY SAID IT PLANS TO REDUCE ITS STAFF BY 1000 OVER THE NEXT TWO YEARS BRINGING ITS WORK FORCE TO 9200 9311080016 931108 MUTUAL FUNDS YACKTMAN FUND IS BLOODIED BUT UNBOWED BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO NERVOUS INVESTORS ARE WONDERING WHETHER WE'RE ENTERING A BEAR MARKET MUTUALFUND MANAGER DONALD YACKTMAN DOESN'T HAVE TO WONDER HE'S BEEN BATTLING FALLING STOCK PRICES FOR MONTHS WHILE OTHER STOCKS HAVE POSTED HEALTHY GAINS TOBACCO DRUG AND FOOD COMPANIES HAVE BEEN THIS YEAR'S WALL STREET LEPERS MR YACKTMAN MANAGER OF CHICAGO'S 145 MILLIONASSET YACKTMAN FUND OWNS THEM ALL YACKTMAN FUND IS DOWN 81 IN 1993 THROUGH THURSDAY WHILE THE AVERAGE DIVERSIFIED US STOCK FUND HAS SOARED 92 ACCORDING TO LIPPER ANALYTICAL SERVICES IT'S VERY HARD TO FIGHT AGAINST THE MOMENTUM OF THE STOCK MARKET SAYS MR YACKTMAN AND WE'VE CLEARLY BEEN DOING THAT MR YACKTMAN HASN'T BOUGHT STOCKS SUCH AS PHILIP MORRIS COS PFIZER INC AND SARA LEE CORP BECAUSE HE'S A KNEEJERK CONTRARIAN RATHER HE FAVORS THESE COMPANIES BECAUSE HE THINKS THEY ARE GREAT BUSINESSES THAT MIGHT SEEM ODD TO INVESTORS WHO ARE WORRIED ABOUT RISING SIN TAXES TOBACCO LITIGATION HEALTHCARE REFORM AND FADING BRAND LOYALTY THOSE ARE REALISTIC CONCERNS AGREES MR YACKTMAN 52 YEARS OLD ALL COMPANIES HAVE PLUSES AND MINUSES WHEN STOCKS ARE DOWN ALL YOU HEAR ABOUT ARE THE MINUSES THE REALITY IS THAT THE PROFITABILITY LEVEL OF THESE COMPANIES IS VERY HIGH WAY ABOVE AVERAGE THIS YEAR INVESTORS HAVE BEEN DEAF TO SUCH ARGUMENTS INSTEAD THEY ARE ENAMORED OF CYCLICAL STOCKS WHOSE EARNINGS SHOULD IMPROVE AS THE ECONOMY PICKS UP STEAM BUT MR YACKTMAN THINKS INVESTORS WILL EVENTUALLY RETURN TO STEADY GROWERS SUCH AS BRISTOLMYERS SQUIBB CO AND JOHNSON & JOHNSON THE MOMENTUM PLAYERS TEND TO FOCUS A LOT ON CHANGES IN EARNINGS PER SHARE HE SAYS AS WE GO FURTHER ALONG EITHER THE CYCLICALS WILL MISS THEIR EARNINGS TARGETS AND DISAPPOINT OR THE RATE OF CHANGE IN EARNINGS WILL SLOW AT THAT POINT INVESTORS WILL TURN BACK TO THE STEADY GROWERS MR YACKTMAN MAY BE RIGHT BUT IN THE MEANTIME HE HAS PAID DEARLY FOR HIS WILLINGNESS TO BUCK RECENT STOCKMARKET TRENDS SINCE LAUNCHING THE NOLOAD YACKTMAN FUND IN JULY 1992 MR YACKTMAN HAS LOST 51 WHILE THE STANDARD & POOR'S 500STOCK INDEX HAS CLIMBED 143 WE HAVEN'T EXACTLY SHOT THE LIGHTS OUT CONCEDES MR YACKTMAN HIS PERFORMANCE HASN'T ALWAYS BEEN POOR IN THE NINE YEARS HE RAN SELECTED AMERICAN SHARES ANOTHER MUTUAL FUND HE GAINED 176 A YEAR VS 167 FOR THE S&P 500 HE QUIT SELECTED AMERICAN SHARES IN MARCH 1992 AFTER A FALLINGOUT WITH THE MANAGEMENT COMPANY'S CHAIRMAN OVER HOW THE FUND SHOULD BE MANAGED MR YACKTMAN HAS GENERATED HIS HEALTHY LONGRUN RETURNS BY INVESTING IN VALUE STOCKS BUT HE DOESN'T FAVOR TRADITIONAL VALUE STOCKS THOSE THAT ARE CHEAP COMPARED WITH CORPORATE ASSETS OR CURRENT EARNINGS INSTEAD MR YACKTMAN IS A VALUE INVESTOR IN THE MOLD OF BERKSHIRE HATHAWAY INC CHAIRMAN WARREN BUFFETT WHO HAS NOTCHED UP DAZZLING GAINS BY MAKING LONGTERM INVESTMENTS IN TOPQUALITY COMPANIES SUCH AS GEICO CORP AND WASHINGTON POST CO THE ULTIMATE VALUE OF A BUSINESS IS THE RETURNS THAT IT GIVES YOU SAYS MR YACKTMAN WE'RE VALUE INVESTORS BUT WE'RE NOT BUYING CHEAP ASSETS WE'RE BUYING HIGH RETURNS TO SPOT WELLRUN BUSINESSES MR YACKTMAN SAYS THE KEY IS TO LOOK FOR COMPANIES THAT HAVE HIGH PROFITS RELATIVE TO THEIR ASSETS FOR PROFITS HE LOOKS AT FREECASH FLOW WHICH HE DEFINES AS OPERATING INCOME LESS MAINTENANCELEVEL CAPITAL EXPENDITURES TO GET A HANDLE ON ASSETS HE CONSIDERS THE ASSETS LISTED ON A COMPANY'S BALANCE SHEET MINUS ANY CASH ACCOUNTS PAYABLE AND INTANGIBLE ASSETS MANY MONEY MANAGERS RATHER THAN LOOKING AT RETURNS ON ASSETS INSTEAD HUNT FOR COMPANIES WITH HIGH RETURNS RELATIVE TO STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY IS A COMPANY'S ASSETS MINUS ITS LIABILITIES OFTENTIMES A COMPANY WILL LOOK GOOD BASED ON BOTH RETURNS ON EQUITY AND RETURNS ON ASSETS THAT'S THE CASE WITH MANY OF YACKTMAN FUND'S HOLDINGS INCLUDING ELI LILLY & CO STRIDE RITE CORP AND UST INC BUT MR YACKTMAN STILL BELIEVES THAT INVESTORS ARE BETTER OFF FOCUSING ON COMPANIES WITH HIGH RETURNS ON ASSETS HOW COME A COMPANY WITH LOW RETURNS ON ASSETS CAN ACHIEVE HIGH RETURNS ON EQUITY BY TAKING ON A LOT OF DEBT THEREBY USING LEVERAGE TO BOLSTER PROFITS SUCH COMPANIES ARE ESPECIALLY VULNERABLE TO AN ECONOMIC DOWNTURN ARGUES MR YACKTMAN MR YACKTMAN TYPICALLY FAVORS COMPANIES THAT DON'T NEED TO MAKE HEFTY INVESTMENTS IN FACTORIES AND EQUIPMENT OVER LONG PERIODS OF TIME THE MORE CAPITALINTENSIVE A BUSINESS IS THE MORE DIFFICULT IT IS TO MAINTAIN HIGH RETURNS SAYS MR YACKTMAN BECAUSE HE'S LEERY OF CAPITALINTENSIVE BUSINESSES HE FAVORS STOCKS SUCH AS STUDENT LOAN MARKETING ASSOCIATION AND INTERPUBLIC GROUP YACKTMAN FUND'S LARGEST POSITION IS PHILIP MORRIS WHICH CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY AT 5550 36 BELOW ITS ALLTIME HIGH OF 86625 A BIG REASON FOR THE DROP WAS THE COMPANY'S DECISION THIS YEAR TO SLASH THE PRICE OF MARLBORO CIGARETTES BECAUSE OF THE THREAT FROM DISCOUNT BRANDS AFTER GIVING UP 2 BILLION IN PRICE CUTS IN THE DOMESTIC CIGARETTE BUSINESS THIS YEAR THEY WILL STILL EARN ABOUT 97 BILLION IN FREE CASH FLOW ON 20 BILLION OF ASSETS NOTES MR YACKTMAN BY DOING WHAT THEY DID THEY DEFENDED MARLBORO AND THEY DEFENDED ITS MARKET SHARE THEY ACCELERATED THE CONSOLIDATION IN THE TOBACCO INDUSTRY MR YACKTMAN FIGURES THAT IF YOU BUY PHILIP MORRIS TODAY YOU ARE PAYING A PRICE EQUAL TO THE VALUE OF THE COMPANY'S FOOD BUSINESS AND GETTING THE CIGARETTE BUSINESS THROWN IN FOR FREE SAYS MR YACKTMAN I'VE BEEN SURPRISED GIVEN WHERE THE MARKET IS THAT WE'VE BEEN ABLE TO BUY SOME GREAT BUSINESSES AT GREAT PRICES 9311080015 931108 COMMODITIES OPEC'S APPARENT HONORING OF PROMISE TO CURB OIL OUTPUT AUGURS POSSIBLE FIRMING OF PRICES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL EVIDENCE IS GROWING THAT OPEC IS HONORING ITS SEPTEMBER PLEDGE TO CURB OVERPRODUCTION THAT SUGGESTS A POSSIBLE FIRMING OF THE ROLLERCOASTER PETROLEUM PRICES OF RECENT DAYS OR AT LEAST AN EASING PERHAPS THIS WEEK OF THE OIL MARKET'S VOLATILITY THE INTERNATIONAL ENERGY AGENCY IS AMONG THE LATEST TO ESTIMATE THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS PRODUCING AT A RATE ONLY SLIGHTLY ABOVE THE NEW SIXMONTH CEILING OF 245 MILLION BARRELS A DAY THAT SHOULD BE WELL WITHIN THE REQUIREMENTS FOR OPEC OIL AS DEMAND RISES SEASONALLY THIS WINTER THE ENERGYMONITORING AGENCY FOR THE WESTERN OILCONSUMING NATIONS DOESN'T PREDICT FUTURE DEMAND FOR OPEC OIL BUT THE IEA'S LATEST FORECASTS OF WORLD OIL DEMAND AND OF NONOPEC SUPPLIES LEAVE GAPS OF 255 MILLION BARRELS A DAY IN THE FOURTH QUARTER AND 26 MILLION A DAY IN THE 1994 FIRST QUARTER TO BE FILLED BY OPEC CRUDES PLUS WITHDRAWALS FROM WORLD INVENTORIES IN ITS CLOSELY WATCHED MONTHLY OIL MARKET REPORT RELEASED FRIDAY IN PARIS THE AGENCY ESTIMATED OPEC'S PRODUCTION AVERAGED 24650000 BARRELS A DAY IN OCTOBER DOWN FROM THE IEA'S REVISED ESTIMATE OF 24820000 BARRELS A DAY IN SEPTEMBER THE IEA CITED A COMBINATION OF PRODUCTION RESTRAINT BY OPEC AND MODEST DEMAND FOR LONGHAUL CRUDES THOSE PRODUCED IN THE PERSIAN GULF AREA FOR SHIPMENT BY TANKER TO THE US OR EUROPE FOR THE LOWER OUTPUT LEVELS WHATEVER THE REASON THIS MAY MARK THE FIRST TIME SINCE OPEC REINSTATED OUTPUT LIMITS AFTER THE 1991 PERSIAN GULF WAR THAT MAJOR MEMBERS OF THE 12NATION GROUP AREN'T CHEATING BY PRODUCING ABOVE THEIR QUOTAS BUT THE OIL MARKET IS INCLINED TO THINK THE WORST ABOUT OPEC AND OIL PRICES STILL WERE FALLING AT THE WEEK'S END WHILE OPEC'S NEARCOMPLIANCE SHOULD HAVE WON A FEW KUDOS TRADERS STILL BELIEVE THAT MARKETS ARE AWASH IN A SEA OF CRUDE WITH SLACK DEMAND UNABLE TO SOAK IT UP REPORTED THE LONDONBASED OIL COMPASS WHICH PUTS OCTOBER OUTPUT AT 246 MILLION BARRELS A DAY IN NEW YORK FUTURES TRADING FRIDAY CRUDE OIL FOR DECEMBER DELIVERY DROPPED 31 CENTS TO SETTLE AT 1709 A BARREL ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE CRUDE FUTURES CLOSED 23 CENTS TO 27 CENTS A BARREL LOWER AND INDEED SOME ANALYSTS SAID OPEC'S PRODUCTION RESTRAINT MAY BE SHORTLIVED OR THE NEW DISCIPLINE MAY BE DUE ONLY TO THE FACT THAT OPEC'S MAIN QUOTA CHEATERS ALREADY ARE PRODUCING NEAR CAPACITY NEVERTHELESS AFTER SEVERAL DAYS OF CONFUSION ABOUT OCTOBER OUTPUT WITH ESTIMATES SUDDENLY ALL OVER THE MAP THE CONSENSUS AMONG MONITORS OF OPEC PRODUCTION APPEARS TO BE IN LINE WITH THE IEA'S ASSESSMENT SPECULATION THAT OPEC'S OCTOBER OUTPUT FIGURE WOULD BE AS HIGH AS 249 MILLION BARRELS PER DAY WERE SUBSEQUENTLY PROVED TO BE ON THE HIGH SIDE SAID SHANNON BURCHETT AN ENERGY FUTURES EXPERT WITH CHASE MANHATTAN BANK IN HIS WEEKLY OIL REPORT NOT ALL THE ESTIMATES FOR OPEC'S OCTOBER PRODUCTION ARE OUT YET THE HIGHLY REGARDED MIDDLE EAST ECONOMIC SURVEY OR MEES WILL REPORT ITS OCTOBER NUMBER FOR OPEC IN TODAY'S WEEKLY EDITION AT THE WEEKEND IAN SEYMOUR THE EDITOR SAID MEES WILL ESTIMATE THAT OPEC PRODUCED 24780000 BARRELS A DAY IN OCTOBER BUT A PART IS DEAD OIL PRODUCED IN IRAQ HE SAID IRAQ STILL IS BANNED BY THE UNITED NATIONS FROM EXPORTING ANY OIL ALTHOUGH ITS QUOTA IS LISTED BY OPEC AS 400000 BARRELS A DAY BUT MR SEYMOUR'S PUBLICATION IS CARRYING IRAQ AT 500000 BARRELS A DAY THAT ACCOUNTS FOR MORE THAN ONETHIRD OF THE EXCESS OUTPUT ESTIMATED BY MEES EVEN THOUGH THE OIL ISN'T ALLOWED INTO THE MARKET SOME PUBLICATIONS SUCH AS PETROLEUM INTELLIGENCE WEEKLY HAVE PUT IRAQ'S OUTPUT AT 600000 BARRELS A DAY NOTING THAT HALF OF OPEC'S OVERPRODUCTION IS LARGELY UNAVAILABLE TO THE OIL MARKET OPEC HAS YET TO MAKE ANY OFFICIAL ESTIMATE OF ITS PRODUCTION FOR OCTOBER BUT OPEC RELIES ON MEMBERS TO VOLUNTEER THEIR OWN PRODUCTION FIGURES OR IT EXTRAPOLATES FROM SECONDARY SOURCES OIL PUBLICATIONS TO ARRIVE AT A FIGURE NEVERTHELESS SEVERAL OIL MINISTERS HAVE OBJECTED TO THE MARKET'S PESSIMISTIC VIEW OF SOME OF THE EARLY AND HIGH ESTIMATES OF OPEC'S PRODUCTION FOR OCTOBER WHICH RESULTED IN PRICE SWINGS OF MORE THAN 80 CENTS A BARREL OUTSIDE OPEC MEANWHILE SOME EXPECT THAT IF PRICES CONTINUE TO FALL THE OIL MINISTERS MAY TRY TO TAKE FURTHER STEPS TO REDUCE THEIR PRODUCTION CEILING AGAIN AT THEIR REGULAR WINTER CONFERENCE WHICH BEGINS IN VIENNA NOV 23 BUT A SURVEY OF OIL TRADERS AND OTHERS BY DOW JONES INTERNATIONAL PETROLEUM REPORT TURNED UP BELIEFS THAT HIGHER PRICES ARE MORE LIKELY THAN A FURTHER SLIDE 9311080014 931108 WORLD MARKETS STOCKS IN EUROPE JAPAN PLUNGE MOOD IN TOKYO IS TENSE SOME ON CONTINENT WELCOME CORRECTION BY QUENTIN HARDY AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL EUROPEAN AND JAPANESE STOCKS SANK FURTHER FRIDAY WHILE SOME ANALYSTS WERE SANGUINE ABOUT THE SHARP DOWNTURN IN EUROPE THERE WAS CONCERN IN JAPAN THAT IT'S TIME FOR A THOROUGH REASSESSMENT OF THAT MARKET THE WAVES OF SELLING ABROAD WERE FUELED IN PART BY SHARP DECLINES WEDNESDAY AND THURSDAY ON WALL STREET THE US MARKET RECOVERED SOMEWHAT FRIDAY BUT PEOPLE ALSO SAW FUNDAMENTAL LOCAL REASONS TO SELL IN EUROPE MARKETS HAVE RISEN METEORICALLY THIS YEAR WITH MUCH OF THE RISE PEGGED TO HOPES OF INTERESTRATE REDUCTIONS A HOPE THAT IS JUST ABOUT USED UP MANY TRADERS SAID IT'S TIME FOR A CORRECTION MOST EUROPEAN INDEXES FINISHED THE WEEK 2 TO 3 LOWER PARIS AND MADRID SHED NEARLY 4 EACH THE PERCENTAGE DROP IN TOKYO WASN'T QUITE AS SHARP BUT THE MOOD WAS PERHAPS MORE TENSE AND THE BURSTING OF JAPAN'S BUBBLE ECONOMY HAS REVEALED SERIOUS HOLES IN THE COUNTRY'S BANKING SYSTEM PEOPLE WERE JUST DUMPING STOCKS LEFT AND RIGHT SAID MASAHIKO TSUYUZAKI CHIEF TRADER AT TACHIBANA SECURITIES AT ONE POINT WHEN THE NIKKEI HIT A LOW OF 18470 IN THE MORNING PEOPLE WERE REALLY AFRAID THE BOTTOM WOULD COMPLETELY FALL OUT FROM UNDER THE MARKET THE NIKKEI 225STOCK INDEX WHICH SLUMPED 23 THURSDAY CLOSED FRIDAY AT 1859046 DOWN 35933 POINTS OR 19 ON MONDAY THE NIKKEI ROSE 2160 POINTS TO 1861206 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11064 DOWN 098 REFLECTING DECLINES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND AN INCREASE IN AMERICAN MARKETS SAVINGS AND LOAN STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10129 UP 279 OR 283 WITH HF AHMANSON OF THE US POSTING A 486 GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT 17098 DOWN 949 OR 526 WITH HIGHLANDS & LOWLANDS OF MALAYSIA SLIDING 938 IN LOCAL CURRENCY THE PLUNGE IN THE TOKYO STOCK MARKET IS RAISING CONCERNS ABOUT THE FALLOUT ON JAPAN'S FINANCIAL SYSTEM THE NIKKEI STOCK AVERAGE IS RAPIDLY HEADING TOWARD A LEVEL AT WHICH MANY OF THE NATION'S BANKS WOULD RUN INTO TROUBLE HANDLING THEIR BAD LOANS THESE BAD LOANS THE RESULT OF EXCESSIVE LENDING DURING JAPAN'S HIGHFLYING 1980S ARE ESTIMATED TO TOTAL MORE THAN 30 TRILLION YEN 27726 BILLION AND HAVE RAISED CONCERNS ABOUT THE VIABILITY OF MANY JAPANESE BANKS TWO WEEKS AGO THE NIKKEI WAS AT 20309 A LEVEL THAT GIVES JAPANESE BANKS PLENTY OF STOCKPRICE GAINS TO BALANCE OFF THEIR BAD LOANS FOR THE SIX MONTHS ENDED SEPT 30 JAPAN'S 11 BIGGEST BANKS THE STRONGEST PART OF THE BANKING SECTOR ARE EXPECTED TO RAISE THEIR LOANLOSS RESERVES BY ABOUT 550 BILLION YEN BUT EVEN LARGER LOAN WRITEOFFS LIE AHEAD AND UNLESS THE NIKKEI TRADES ABOVE 18000 THE BANKS WHICH HAVE SUBSTANTIAL MARKET HOLDINGS WON'T HAVE SUFFICIENT ASSETS TO FINANCE THE WRITEOFFS ANALYSTS SAID IF THE MARKET GOES BELOW 18000 IT'S A REAL PROBLEM SAID NOZOMU KUNISHIGE BANKING ANALYST AT KLEINWORT BENSON INTERNATIONAL INC MANY ANALYSTS BELIEVE THE MARKET COULD EASILY FALL THAT FARON ITS WAY TO EVEN MORE SEVERE DECLINES THE NIKKEI WILL FALL AT LEAST TO 16000 PREDICTED TETSUO TSUKIMURA CHIEF ECONOMIST AT SMITH BARNEY SHEARSON A SHARP FALL IN THE NIKKEI COULD TRIGGER A FINANCIAL CRISIS MR TSUKIMURA SAID JAPAN'S ECONOMY HAS BEEN BASED ON A RISING LAND AND EQUITY PRICE SYSTEM AND THAT SYSTEM IS NOW BEING BROKEN SUCH WORRIES HAVE ARISEN SEVERAL TIMES IN JAPAN DURING THE PAST YEAR AND IN EACH CASE THE GOVERNMENT HAS INJECTED FUNDS INTO THE STOCK MARKET SHORING UP BANKS' BALANCE SHEETS AND RESTORING CONFIDENCE AMONG SOME INVESTORS BUT ON FRIDAY FINANCE MINISTER HIROHISA FUJII SAID THE GOVERNMENT WAS TAKING A LONGTERM VIEW AND WASN'T PLANNING ANY NEW EFFORTS TO REVIVE THE MARKET BUT WITH ALL THE PESSIMISM SAID JOHN ALKIRE PRESIDENT OF MORGAN STANLEY ASSET MANAGEMENT IN TOKYO THE MARKET MAY BE OVERSOLD A LOT OF STUFF IS POPPING UP ON OUR SCREENS HE SAID ON A PRICETOBOOKVALUE BASIS OR PRICE TO CASH FLOW A LOT OF THINGS LOOK CHEAP IN TOKYO VOLUME WAS ESTIMATED AT 430 MILLION SHARES SHARPLY HIGHER THAN THE 253 MILLION SHARES TRADED A DAY EARLIER THERE WERE 938 DECLINING ISSUES AND JUST 114 GAINERS THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DROPPED 1779 POINTS THURSDAY SURRENDERED 2323 OR 15 TO 158085 EUROPE'S STOCK DECLINES ARE A POIGNANT REMINDER TO THE CONTINENT THAT THE GREAT BULL RUN OF 1993 IS BASED LARGELY ON HOPE THAT INTEREST RATES WILL CONTINUE TO FALL FLORENT BRONES DIRECTOR OF EUROPEAN STRATEGY AT SOCIETE GENERALE IN PARIS SAID IT IS TIME TO LET THINGS CALM DOWN A BIT TO BE A LITTLE MORE CAUTIOUS IN THE SHORTTERM HE POINTED OUT THAT STOCK MARKET PERFORMANCE DURING THE PAST 12 MONTHS IN EUROPE HAS BEEN PHENOMENAL WITH THE WEAKEST MARKET BELGIUM STILL POSTING A 21 RISE IN LOCAL CURRENCY TERMS FINLAND THE TOP PERFORMER IS UP NEARLY 120 IN LOCAL CURRENCY TERMS SINCE NOV 5 1992 SOME EUROPEAN MARKET WATCHERS WONDERED IF EUROPEAN STOCK SALESPEOPLE HAVE ALREADY OVERPLAYED THE FALLING INTEREST RATE CARD MOST IF NOT ALL OF THE LIKELY DECLINES IN EUROPEAN INTEREST RATES ARE PROBABLY DISCOUNTED BY NOW SAID SOPHIE BLANPAIN STRATEGIST AT CS FIRST BOSTON IN LONDON THAT MEANS ANY IMPROVEMENT IN SENTIMENT WILL HAVE TO BE INSPIRED BY A RECOVERY IN CORPORATE EARNINGS WHICH IS LIKELY TO BE SEEN MUCH MORE IN COUNTRIES THAT HAVE DEVALUED THEIR CURRENCIES IN THE PAST 18 MONTHS SUCH AS SWEDEN ITALY AND BRITAIN STILL THE MARKET CONSENSUS SEEMS TO BE EXPECTING A PAUSE THAT REFRESHES THE STOCK MARKET RALLY RATHER THAN ONE THAT MARKS A PROLONGED DOWNTURN CRAIG KNOX CHIEF INVESTMENT STRATEGIST AT LAZARD INVESTORS IN LONDON SAID EUROPE IS SUFFERING ITS LONGAWAITED CORRECTION HE ADDED THIS IS HEALTHY BUT IT'S PAINFUL WHILE IT HAPPENS GORDON ANDERSON HEAD OF STRATEGY AT DUNEDIN FUND MANAGERS LTD IN EDINBURGH SAYS HE'S BEEN CAUTIOUS ABOUT EUROPEAN STOCKS FOR THE PAST TWO MONTHS HOWEVER HE THINKS ANY FURTHER SIGNIFICANT DECLINES WOULD PROBABLY BE A BUY SIGNAL FOR BARGAIN HUNTERS ON FRIDAY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX PLUNGED 634 POINTS OR 2 TO 30856 THE FT 30STOCK INDEX SANK 44 POINTS OR 19 TO 2332 VOLUME WAS 7733 MILLION SHARES COMPARED WITH 7481 MILLION SHARES IN THE PREVIOUS SESSION 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 9311080013 931108 BUSINESS BRIEF SOLAR FINANCIAL SERVICES INC HOLDER FILES SUIT ALLEGING MISREPRESENTATION OF FINANCES A SHAREHOLDER LAWSUIT HAS BEEN FILED AGAINST SOLAR FINANCIAL SERVICES INC ALLEGING THAT THE COMPANY MISREPRESENTED ITS ASSETS OPERATIONS AND FINANCIAL CONDITION IN ITS FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SOLAR SELLS AND FINANCES USED AUTOS NAMED AS DEFENDANTS ARE DAVID L PAVSNER PRESIDENT CHIEF EXECUTIVE OFFICER AND CHAIRMAN LAURANCE B HANKIN FORMER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND SYDNEY SHAMPAIN A DIRECTOR AND ONLY MEMBER OF THE AUDIT COMMITTEE JEFF LEVINE THE SHAREHOLDER ALLEGES THAT THE THREE DEFENDANTS PRESENTED A DISTORTED AND MISLEADING PICTURE OF SOLAR'S CONTINUED PROFITABLITY IN ORDER TO PROTECT THEIR POSITIONS AND COMPENSATION HE ALSO CHARGES THAT MR SHAMPAIN FAILED TO TAKE THE NECESSARY STEPS TO ENSURE THAT SOLAR IN MIAMI MAINTAINED PROPER INTERNAL FINANCIAL CONTROLS THE SUIT WAS FILED IN FEDERAL COURT IN MIAMI SOLAR SAID THAT IT AND ITS OFFICERS AND DIRECTORS WOULD VIGOROUSLY DEFEND THE LAWSUIT WHICH SEEKS MONETARY DAMAGES OF AN UNSPECIFIED AMOUNT 9311080012 931108 INDUSTRY FOCUS US ALUMINUM MAKERS FIND WORLD MARKET A SCARY PLACE GLOBAL GLUT AND WEAK DEMAND RESULTS IN A MOUNTAIN OF UNSOLD METAL BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH AMERICA'S ALUMINUM PRODUCERS AVOIDED THE FATE OF THEIR COUSINS IN BIG STEEL BY BECOMING GLOBAL PLAYERS PRODUCING AND SELLING METAL WORLDWIDE BUT THEIR INTERNATIONAL EXPOSURE NOW HAS THEM RUNNING SCARED A TIDAL WAVE OF ALUMINUM EXPORTS FROM RUSSIA AND OTHER FORMER SOVIET REPUBLICS HAS SQUASHED PRICES WHILE GRINDING RECESSIONS IN JAPAN AND EUROPE HAVE KEPT DEMAND IN THOSE MARKETS LIMP THE RESULT IS A MOUNTAIN OF UNSOLD METAL BEFORE THE DUST SETTLES SOME WEAKER COMPANIES COULD VANISH AND EVEN STRONG ONES COULD SEE THEIR BALANCE SHEETS BATTERED WITHOUT CUTS IN PRODUCTION BY THE FORMER SOVIET UNION SAYS PAUL H O'NEILL CHAIRMAN OF ALUMINUM CO OF AMERICA WE FACE SOMETHING LIKE THE BATAAN DEATH MARCH IT WILL BE LONG AND BRUTAL AND LEAVE LOTS OF CASUALTIES SOME US ALUMINUM MAKERS DESPERATE TO STEM THE FLOOD OF METAL ARE PONDERING LEGAL ACTION AGAINST THE RUSSIANS UNDER US TRADE LAWS AND MR O'NEILL SAYS HIS COMPANY MIGHT BRING TRADE ACTIONS AGAINST A WIDER RANGE OF PRODUCERS HE CONTENDS THAT MANY FOREIGN COMPANIES ARE SELLING BELOW COST AND THAT IF PRICES FALL FURTHER MANY OR MOST WILL BE SELLING BELOW THEIR COSTS AND THEREFORE IT WOULD BE LOGICAL TO BRING TRADE ACTION AGAINST ALL IMPORTS INCLUDING THOSE FROM CANADA ALCOA THE WORLD'S NO 1 PRODUCER WAS ALONE AMONG US MAKERS IN POSTING A THIRDQUARTER PROFIT DOWN OVER 36 TO 288 MILLION COMPARED WITH A YEAR EARLIER WHILE THE NO 3 PRODUCER WORLDWIDE REYNOLDS METALS CO REPORTED ITS FOURTH CONSECUTIVE QUARTERLY LOSS US MAKERS HAVE MOTHBALLED OVER 600000 TONS OF CAPACITY OR ABOUT 15 OF THE US TOTAL BUT EVEN AS THE INDUSTRY HUNKERS DOWN THE STRONGER US COMPANIES ARE POSITIONING THEMSELVES FOR THE FUTURE THEY ARE COURTING NEW CUSTOMERS IN THE AUTO INDUSTRY AND TARGETING PACKAGING IN ASIA AND SOUTH AMERICA AS WELL AS RUSHING TO CUT PRODUCTION COSTS ALUMINUM ACCOUNTS FOR LESS THAN 200 POUNDS OF A TYPICAL USMADE CAR MOST OF IT IN THE WHEELS SOME ANALYSTS EXPECT THIS TO JUMP TO 350 POUNDS BY THE END OF THE DECADE WE THINK AUTO APPLICATIONS COULD GROW TO RIVAL BEVERAGE PACKAGING AS A NO 1 MARKET FOR THE INDUSTRY IN THE US SAYS RICHARD G HOLDER PRESIDENT AND CHIEF OPERATING OFFICER OF REYNOLDS THE RICHMOND VA PRODUCER HAS FORGED AGREEMENTS WITH SEVERAL JAPANESE FIRMS TO SHARE RESEARCH AND DEVELOPMENT WORK ON AUTOMOTIVE USES FOR ALUMINUM REYNOLDS ALSO IS BUILDING A 26 MILLION PLANT IN INDIANA FOR ALUMINUM COMPONENTS INCLUDING BUMPER SYSTEMS DOOR INTRUSION BEAMS AND SUNROOF TRACKS AND ALCOA BASED IN PITTSBURGH PA HAS JOINED FORCES WITH GERMANY'S AUDI AG TO DEVELOP AN ALUMINUM CAR FRAME THE ALUMINUM AUDI WILL BE UNVEILED AT NEXT YEAR'S GENEVA MOTOR SHOW US FUELEFFICIENCY REQUIREMENTS COULD HASTEN THE USE OF MORE ALUMINUM BY CAR MAKERS THE METAL'S RELATIVE LIGHT WEIGHT MAKES IT AN ATTRACTIVE SUBSTITUTE FOR STEEL IN SOME APPLICATIONS ALUMINUM MAKERS ALSO ARE FEELING THE HEAT OF COMPETITION IN SOME TRADITIONAL MARKETS SOFTDRINK PRODUCERS FOR INSTANCE ARE SHIFTING TOWARD USING MORE PLASTIC BOTTLES AS WELL AS THINNER GRADES OF ALUMINUM FOR THE CANS THEY PRODUCE US ALUMINUM DEMAND SHOT UP 9 THROUGH THE FIRST EIGHT MONTHS OF 1993 AS ALUMINUMCONSUMING INDUSTRIES SNAPPED BACK BUT THE INDUSTRY'S INTERNATIONAL NATURE MEANS US PRODUCERS SEE LITTLE BENEFIT FROM IT FOR ONE THING THE DOMESTIC SURGE WAS MORE THAN OFFSET BY A 3 DROP IN THE REST OF THE WORLD GLOBAL DEMAND IS EXPECTED TO BE OFF ABOUT 1 THIS YEAR THE FIRST DECLINE SINCE 1982 AND SINCE ALUMINUM PRICES ARE SET ON THE LONDON METAL EXCHANGE US PRODUCERS HAVE NO WAY OF GAINING BETTER PRICING FROM A STRONG HOME MARKET THE WORLD PRICE ABOUT 47 CENTS A POUND IS A RECORD LOW WHEN ADJUSTED FOR INFLATION THERE IS LITTLE HOPE OF SIGNIFICANT PRICE INCREASES ANY TIME SOON THE WAVE OF EXPORTS FROM RUSSIA HITTING AT A TIME OF GLOBAL RECESSION HAS CREATED A MASSIVE GLUT EQUAL TO 16 1/2 WEEKS OF SUPPLY MORE THAN TWICE THE LEVEL CONSIDERED HEALTHY RIGHT NOW THIS INDUSTRY IS STARING AT A MOUNTAIN OF ALUMINUM AND IT WILL TAKE A LONG TIME TO WORK IT OFF SAYS THOMAS M VAN LEEUVEN AN ANALYST AT FIRST BOSTON PRODDED BY THE INDUSTRY THE US RUSSIA AND OTHER ALUMINUMPRODUCING COUNTRIES ARE TALKING ABOUT WAYS TO STEM THE FLOW OF RUSSIAN EXPORTS TO ENCOURAGE THE RUSSIANS TO COOPERATE WESTERN PRODUCERS HAVE OFFERED TO HELP PAY FOR MODERNIZATION OF RUSSIAN ALUMINUM PLANTS IF THE RUSSIANS FIRST CURTAIL OUTPUT THE INITIAL ROUND OF MEETINGS WAS IN OCTOBER IN MOSCOW AND WILL RESUME IN WASHINGTON ON DEC 1 AND 2 BOND EVANS CHIEF EXECUTIVE OFFICER OF ALUMAX INC THE ALUMINUM UNIT OF AMAX INC SAYS WESTERN PRODUCERS WHICH INCLUDE JAPAN HAVE SHUT DOWN 18 MILLION TONS OF PRODUCTION AND THAT IT IS NOW UP TO THE RUSSIAN SIDE TO SHOW GOOD FAITH WE'VE ALREADY MADE A LOT OF ROOM IN THE MARKET SAYS MR EVANS WHILE THE RUSSIANS JUST KEEP PUSHING PRODUCT BUT STEWART SPECTOR AN ANALYST WHO WRITES THE SPECTOR REPORT AN INDUSTRY NEWSLETTER SAYS A MORE POWERFUL FORCE IS PRESSURING THE RUSSIANS ECONOMICS UNTIL NOW THEY WERE THE LOWCOST PRODUCERS SO THEY FLOODED THE MARKET SAYS MR SPECTOR BUT INFLATION IS QUICKLY DEVOURING MUCH OF THE RUSSIAN INDUSTRY'S COST ADVANTAGE HE SAYS INDEED MR SPECTOR ESTIMATES THAT THE RUSSIANS ARE LOSING MONEY ON EACH TON THEY EXPORT FROM SMELTERS IN WESTERN RUSSIA AND MAKING JUST A TINY PROFIT ON PRODUCT FLOWING FROM THEIR EASTERN SMELTERS MR SPECTOR CONTENDS THAT MANY WESTERN COMPANIES ARE HOPING TO SEE WEAKER COMPETITORS IN OTHER PARTS OF THE WORLD FORCED OUT OF THE ARENA AS WELL NOT THAT THIS WILL BE EASY MANY GOVERNMENTS PARTICULARLY IN EUROPE ARE HESITANT TO SHUT STATEOWNED SMELTERS EVEN WHEN THEY ARE BLEEDING RED INK BECAUSE OF JOB LOSSES MR O'NEILL ALCOA'S CHAIRMAN SAYS THE INDUSTRY IS SLIPPING TOWARD A WAR OF BALANCE SHEETS IN WHICH COMPANIES TRY TO RIDE OUT THE STORM AT ALL COSTS THIS IS BAD FOR THE INDUSTRY HE ADDS BECAUSE ALL COMPANIES ARE BEING FORCED TO CUT SPENDING NEEDED TO DEVELOP PRODUCTS AND REINVEST IN CAPITAL IMPROVEMENTS MEANWHILE SOME ANALYSTS INSIST THE SURVIVORS WILL EMERGE STRONGER FROM THE CRISIS LOOKING FIVE OR SIX YEARS DOWN THE ROAD I COULD SEE THE WHOLE THING REVERSING WITH A SHORTAGE OF ALUMINUM AND HUGE PROFITS SAYS JEFFREY MILLER AN ANALYST AT DUFF & PHELPS CORP MR MILLER CONTENDS THAT WITH PRICES AT THEIR PRESENT LOW LEVELS NOBODY IN THEIR RIGHT MIND IS ADDING CAPACITY SO IF THE RUSSIANS CUT PRODUCTION AND ECONOMIES RECOVER IN JAPAN AND EUROPE DEMAND COULD QUICKLY SURGE AND BRING DOWN INVENTORIES 9311080011 931108 BUSINESS BRIEF HOLOPHANE CORP COMPANY PLANS WRITEOFFS OF 72 MILLION FOR 4TH PERIOD HOLOPHANE CORP SAID THE REDEMPTION OF TWO PREFERRED STOCK ISSUES AND ONE NOTE ISSUE WILL FORCE IT TO TAKE 72 MILLION IN WRITEOFFS IN THE FOURTH QUARTER HOLOPHANE IN COLUMBUS OHIO WHICH MAKES LIGHTING FIXTURES AND SYSTEMS SAID IT USED ITS 372 MILLION FROM AN OCT 31 INITIAL PUBLIC OFFERING AND FUNDS FROM A NEW CREDIT AGREEMENT TO REDEEM 19 MILLION IN TWO PREFERRED STOCK ISSUES AND 354 MILLION IN 1375 SENIOR SUBORDINATED NOTES THE REDEMPTIONS CREATED COSTS SUCH AS A PREPAYMENT PENALTY ON THE SUBORDINATED NOTES WHICH WILL RESULT IN THE WRITEOFFS THE COMPANY SAID IN THE YEAREARLIER PERIOD HOLOPHANE POSTED A NET LOSS OF 66000 OR ONE CENT A SHARE 9311080010 931108 ABREAST OF THE MARKET ECONOMY'S UPTURN SENDS ANALYSTS TO THE BAROMETERS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE ECONOMY BEGINNING TO BUBBLE INVESTORS WILL BE CLOSELY SCRUTINIZING EVERY STATISTIC TO TRY TO PIECE TOGETHER WHERE GROWTH PROFITS AND INFLATION ARE HEADED IF THE ECONOMY IS INDEED ACCELERATING THEN INVESTORS MAY WANT TO JUMP HEADFIRST INTO AN ARRAY OF ECONOMICALLY SENSITIVE STOCKS SUCH AS AUTO MAKERS HOME BUILDERS AND HEAVYEQUIPMENT MANUFACTURERS BUT IF THIS IS JUST ANOTHER INSTANCE OF AN ANEMIC ECONOMY'S FITS AND STARTS THEN CYCLICAL STOCKS MAY LAG BEHIND AS ISSUES THAT ARE SENSITIVE TO INTEREST RATES REBOUND LATER WHEN RATES ONCE AGAIN FALL THE ONLY CERTAINTY RIGHT NOW IS UNCERTAINTY CONSIDER THIS SAMPLING OF WALL STREET OPINION I DON'T THINK THE RECOVERY IS FOR REAL SAYS NED DAVIS HEAD OF A RESEARCH FIRM THAT BEARS HIS NAME IF THERE IS ANY FEAR IT MAY BE THAT WE ARE GROWING TOO FAST COUNTERS ELAINE GARZARELLI LEHMAN BROTHERS' RESIDENT STOCK GURU OBVIOUSLY EMPLOYMENT GROWTH IS A KEY BAROMETER FOR THE ECONOMY AND HENCE FOR THE STOCK MARKET FRIDAY'S REPORT ON OCTOBER EMPLOYMENT SHOWED HEALTHY JOB GROWTH EVEN AMONG MANUFACTURERS BUT IT COMES ON THE HEELS OF SOME EARLIER REPORTS THAT COULD BE CONSIDERED AT BEST LACKLUSTER ONLY IF JOB GROWTH CONTINUES AT OCTOBER'S HEADY PACE WILL ABBY COHEN A STOCK MARKET STRATEGIST AT GOLDMAN SACHS BE CONVINCED THAT THE RECOVERY IS INDEED ACCELERATING WE HAVE SEEN INDUSTRIAL PRODUCTION PICK UP BEFORE IN THIS CYCLE SAYS MS COHEN ACKNOWLEDGING WHAT OTHER ANALYSTS ARGUE IS A GOOD INDICATOR OF A REBOUNDING ECONOMY BUT IT WAS NOT SUSTAINED AND WE THINK IT WAS BECAUSE THE UPTURN IN PRODUCTION WAS NOT ACCOMPANIED BY JOB GROWTH SHE ALSO WANTS TO SEE PERSONAL INCOMES RISING FASTER THAN CONSUMPTION WHICH HAS NOT BEEN THE CASE SINCE SPRING IF CONSUMPTION IS GROWING FASTER THAN INCOME YOU KNOW GROWTH IS NOT SUSTAINABLE SHE SAYS BUT WITH A PICKUP IN GROWTH COMES AT LEAST THE POTENTIAL THREAT OF INFLATION AND SOME ANALYSTS ARE ARGUING THAT INFLATION INDICATORS ARE WHERE INVESTORS SHOULD BE FOCUSING CLEARLY THE BIGGEST NUMBER OF THE MONTH RIGHT NOW IS THE EMPLOYMENT NUMBER SAYS JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ BUT I THINK WITHIN SIX MONTHS THE NUMBER IS GOING TO BE CONSUMER PRICES BOTH CONSUMER AND WHOLESALE PRICE DATA WILL BE RELEASED THIS WEEK AND MR MCALINDEN SAYS HE WILL BE PAYING CLOSE ATTENTION TO SEE IF HIS FEARS OF RISING PRICE PRESSURES ARE VALIDATED AS LAST WEEK'S BIG BOND MARKET SELLOFF SUGGESTS IT WOULD TAKE ONLY A SLIGHT WHIFF OF INFLATION TO SPOOK THE BOND MARKET THAT IN TURN WOULD HURT STOCK PRICES OTHER ANALYSTS WARN THAT INVESTORS SHOULD BRACE THEMSELVES FOR AN UNUSUALLY HIGH OCTOBER INFLATION REPORT BECAUSE OF NEW GASOLINE TAXES THAT TOOK EFFECT OCT 1 THE CONSENSUS ON WALL STREET CALLS FOR THE CONSUMER PRICE INDEX TO RISE 06 AFTER REMAINING UNCHANGED IN SEPTEMBER BUT THE MOST OPTIMISTIC ANALYSTS SAY THE ONETIME EFFECT SHOULD DISAPPEAR IN SUBSEQUENT REPORTS WHICH MANY EXPECT WILL BE IN LINE WITH THE RELATIVELY BENIGN 27 RATE POSTED SO FAR THIS YEAR FOR EXAMPLE EDWARD YARDENI CHIEF ECONOMIST AT CJ LAWRENCE IS WATCHING THE CONSUMER PRICE INDEX CAREFULLY BUT HE IS BETTING THAT OVER TIME IT WILL SHOW THAT INFLATION WORRIES ARE GREATLY OVERBLOWN I THINK THIS RECENT SHARP SELLOFF IN THE FINANCIAL MARKETS IS NOT JUSTIFIED BY THE FUNDAMENTALS HE SAYS THERE ARE STILL A LOT OF QUESTIONS ABOUT WHETHER THIS RECENT UPTICK IN THE ECONOMY IS THE BEGINNING OF SUSTAINED GROWTH OR ONE OF THESE TEMPORARY DEVELOPMENTS THAT WE HAVE SEEN OVER THE PAST 31 MONTHS EVEN IF THE ECONOMY TURNS OUT TO HAVE MORE GETUPANDGO THAN HE EXPECTS HE STILL DOESN'T THINK INFLATION WILL BE A PROBLEM SINCE PRODUCTIVITY HAS BEEN RISING RAPIDLY IF WE FIND THAT THE ECONOMY IS DOING BETTER BUT IT IS PRODUCTIVITYLED GROWTH LIKE WE SAW IN THE THIRD QUARTER THEN THE BIG BULLISH SURPRISE FOR STOCKS AND BONDS WILL BE THAT INFLATION DOESN'T GET WORSE OR COULD EVEN GET BETTER HE SAYS SOME ANALYSTS HAVE NO DEALINGS WITH WHAT CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST AT MERRILL LYNCH CALLS THE STATISTIC OF THE DAY GIG MY FIRST REACTION IS THAT IT IS A SILLY WAY TO INVEST HE SAYS STILL MR CLOUGH SUGGESTS THAT THERE ARE SOME BENEFITS TO MONITORING THE BROADEST MEASURE OF THE NATION'S MONEY SUPPLY KNOWN AS M3 WHICH TRACKS BANK DEPOSITS HE ARGUES THAT M3 RELEASED EACH THURSDAY BY THE FEDERAL RESERVE IS IMPORTANT BECAUSE IT MIMICS CREDIT AND CAN OFTEN BE A BETTER LEADING INDICATOR OF PRICE PRESSURES THAN THE LABOR DEPARTMENT'S CPI DATA THE CONSUMER PRICES DATA HE CONTENDS ARE DEEPLY DISTORTED BECAUSE THEY EXAMINE LIST PRICES AND ARE BASED ON THE PRICES OF A FIXED BASKET OF GOODS MANY OF WHICH PLAYED AN IMPORTANT PART IN CONSUMER INFLATION DURING THE EARLY '80S BUT HAVE LITTLE RELEVANCE TODAY I THINK IF WE SEE A SHARP EXPANSION IN M3 IT WOULD BE BEARISH FOR THE FINANCIAL MARKETS BECAUSE IT WOULD IMPLY AN EXPANSION IN CREDIT SAYS MR CLOUGH THE DANGER ZONE HE SAYS IS IF M3 GROWS AT A RATE OF 10 TO 12 WHICH WOULD SIGNAL THE EMERGENCE OF INFLATIONARY PRESSURES EVEN THOUGH THE ECONOMIC RECOVERY IS 2 1/2 YEARS OLD MR CLOUGH NOTES M3 IS RISING AT A MEAGER RATE OF LESS THAN 1 AS LONG AS THE ECONOMY IS PICKING UP AND THERE'S LITTLE RISK OF INFLATION MR CLOUGH SAYS INVESTORS WILL DO PARTICULARLY WELL IN CYCLICAL MANUFACTURING STOCKS HE SAYS AUTO STOCKS WHICH HAVE RALLIED HANDSOMELY SINCE THE ECONOMY HIT BOTTOM IN MARCH 1991 STILL HAVE SOME MOMENTUM IN THEM SO DO STEEL STOCKS THAT'S WHY MR CLOUGH EXPECTS THE DOW JONES INDUSTRIAL AVERAGE WHICH IS FILLED WITH STOCKS SUCH AS THESE WILL BREACH THE 4000 MARK NEXT YEAR DESPITE ALL THE NAYSAYING ON WALL STREET LAST WEEK STOCK MARKET INDEXES REBOUNDED AFTER TWO DAYS OF SHARP LOSSES BUOYED BY ROBUST GAINS IN BANK AND TOBACCO STOCKS THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1845 POINTS TO 364343 IN VERY HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX GAINED 208 TO 45957 AND THE NASDAQ COMPOSITE INDEX JUMPED 573 TO 76299 RECOVERING JUST A FRACTION OF THEIR LOSSES LAST WEEK DESPITE THE REBOUND ONE OMINOUS SIGN PERSISTED DECLINING ISSUES OUTNUMBERED ADVANCERS 1265 TO 866 VOLUME SWELLED TO 3313 MILLION SHARES FROM 3212 MILLION SHARES THURSDAY NEARLY 16 BILLION SHARES CHANGED HANDS ON THE BIG BOARD LAST WEEK MAKING IT THE SECONDHEAVIEST WEEK OF TRADING AFTER THE WEEK OF THE OCTOBER 1987 CRASH FOR THE WEEK THE DOW JONES INDUSTRIALS SLID 1 THE S&P 500 LOST 18 AND THE NASDAQ COMPOSITE INDEX DROPPED 21 AMERICAN DEPOSITARY RECEIPTS OF TELEFONOS DE MEXICO SLID 1 1/2 TO 51 3/4 THE HEARD ON THE STREET COLUMN FRIDAY REPORTED THAT MANY GROWTHSTOCK INVESTORS THINK THE MEXICAN TELEPHONE SERVICE PROVIDER'S EARNINGS MOMENTUM HAS REACHED A PEAK UTILITIES STAGED A MILD REBOUND AFTER SUFFERING THEIR BIGGEST WEEKLY DECLINE IN NEARLY THREE YEARS THE DOW JONES UTILITY AVERAGE EDGED UP 086 TO 22726 RECOVERING JUST A FRACTION OF ITS NEARLY 6 LOSS FOR THE WEEK THROUGH THURSDAY BANK STOCKS ANOTHER INTERESTRATE SENSITIVE GROUP THAT HAD WITHERED LAST WEEK WERE AMONG THE LEADERS OF FRIDAY'S MARKET REBOUND CITICORP GAINED 1 5/8 TO 36 3/8 CHEMICAL BANKING INCREASED 1 TO 38 7/8 JP MORGAN ROSE 1 1/8 TO 69 7/8 BANKAMERICA ADDED 1 1/4 TO 41 7/8 AND WELLS FARGO GAINED 3 1/4 TO 109 1/8 CIRCUS CIRCUS ENTERPRISES ROSE 2 1/4 TO 36 1/4 CS FIRST BOSTON ANALYST BRIAN EGGER UPGRADED HIS RATING ON THE STOCK TO BUY FROM HOLD 9311080009 931108 GUINNESS PLC SEES IMPROVED OUTLOOK FOR SCOTCH WHISKY SPECIAL TO THE WALL STREET JOURNAL LONDON GUINNESS PLC CHAIRMAN TONY GREENER SAID HE BELIEVES THE PROSPECTS FOR SCOTCH WHISKY TODAY ARE BETTER THAN THEY HAVE BEEN FOR MANY YEARS WE AS MARKET LEADERS ARE UNIQUELY PLACED TO TACKLE THE REJUVENATION OF SCOTCH IN THE MATURE MARKETS MR GREENER SAID IN A SPEECH TO INVESTORS IN ATHENS THROUGH ITS UNITED DISTILLERS SUBSIDIARY GUINNESS SELLS NUMEROUS SCOTCH WHISKY BRANDS INCLUDING JOHNNIE WALKER AND OLD PARR MR GREENER SAID NEW MARKETS SUCH AS CHINA INDOCHINA INDIA AND EASTERN EUROPE ARE GROWING HE SAID UNITED DISTILLERS IS ALONE IN THE SCOTCH WHISKY MARKET IN ITS ABILITY TO REACH ALL GROWTH MARKETS HE ALSO SEES OPPORTUNITIES TO REJUVENATE CONSUMER INTEREST IN THE LEADING SCOTCH WHISKY BRANDS IN MATURE MARKETS SUCH AS THE US AND THE UK THE EXECUTIVE PLAYED DOWN MARKET RUMORS THAT GUINNESS PLANS TO CHANGE ITS STAKE IN LVMH MOET HENNESSY LOUIS VUITTON SA A FRENCH DRINKS COMPANY IN WHICH IT HAS A 24 STAKE MARKET RUMORS HAVE CIRCULATED THAT GUINNESS WOULD EITHER RAISE ITS STAKE IN THE COMPANY OR CHANGE IT IN A MANNER THAT WOULD GIVE IT A BIGGER SHARE IN THE DRINKS SIDE OF LVMH INSTEAD OF A MIX WITH ITS LUXURY GOODS BUSINESSES BOTH LVMH AND OURSELVES MAKE SUBSTANTIALLY MORE MONEY AS A RESULT OF THEM THEIR JOINT VENTURES THAN EITHER COULD DO ON THEIR OWN MR GREENER SAID HE SAID THE THE REASON FOR THE JOINT VENTURES WAS TO UNDERPIN COMMON TRADING INTERESTS IN ASIA EUROPE AND NORTH AMERICA GUINNESS IS EXPANDING ITS JOINT VENTURES PROGRESSIVELY HE SAID CITING RECENT COOPERATION AGREEMENTS IN MEXICO AND CHINA 9311080008 931108 FOREIGN EXCHANGE SHIFT IN INSTITUTIONAL HEDGING PRACTICES MAY REDUCE YEAREND DOLLAR PURCHASES BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SHIFT IN INSTITUTIONAL HEDGING PRACTICES MAY CUT DOWN ON DOLLAR PURCHASES IN THE FINAL WEEKS OF 1993 CURRENCY PLAYERS SAY CORPORATIONS AND MUTUAL FUNDS OFTEN BUY DOLLARS TOWARD THE END OF THE YEAR TYPICALLY THEY HEDGE AGAINST FOURTHQUARTER DOLLAR GAINS ARISING FROM US COMPANIES' NEED TO CONVERT FOREIGN REVENUE AND WRAP UP PROFITANDLOSS STATEMENTS MORE RECENTLY THEY HAVE BET ON A STRONGER DOLLAR AS THE US ECONOMY PICKS UP MEANWHILE THE DOLLAR ROSE FRIDAY TO 17083 MARKS ITS HIGHEST LEVEL SINCE AUG 16 BEFORE REVERSING COURSE ON PROFITTAKING LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 16940 MARKS AND 10820 YEN COMPARED WITH 16955 MARKS AND 10818 YEN LATE THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10833 YEN AND AT 16905 MARKS ECONOMIC FUNDAMENTALS POINT TO A STRONGER DOLLAR DEALERS SAY BUT THE US CURRENCY MAY NOT GET THE YEAREND KICK THAT SOME PARTICIPANTS EXPECT SOME CORPORATIONS ARE LEERY OF DOLLARBUYING BECAUSE LAST YEAR'S HEDGING PROVED COSTLY SAYS CONNIE SILVESTER VICE PRESIDENT FOR FOREIGNEXCHANGE TRADING AT ABN AMRO BANK NV IN CHICAGO IN RECENT YEARS SHE NOTES CORPORATIONS HAVE BET THAT AN IMMINENT US RECOVERY WOULD LIFT THE DOLLAR THEY HAVE BEEN DISAPPOINTED WHEN NEITHER THE RECOVERY NOR THE DOLLAR GAINS MATERIALIZED LAST YEAR PEOPLE LAYERED ON COVERAGE THEY REGRETTED MS SILVESTER SAYS TO SOME EXTENT CORPORATIONS HAVE GOTTEN A LITTLE JADED ABOUT THE POSSIBILITY OF DOLLAR APPRECIATION AND THE SPEED OF THE US RECOVERY AND BECAUSE THE DOLLAR HAS TRADED IN A RELATIVELY NARROW RANGE THIS YEAR AT LEAST AGAINST THE EUROPEAN CURRENCIES MANY CORPORATIONS HAVEN'T HAD TO ADJUST THEIR PRICES OR MAKE LARGE CURRENCY BETS TO COPE WITH EXCHANGERATE FLUCTUATIONS SAYS ANGELO EVANGELISTA CORPORATE FOREIGNEXCHANGE TRADER AT BANK OF BOSTON FOREIGNEXCHANGE MARKETS MAY ALSO SEE LESS THAN USUAL ENDOFYEAR HEDGING FROM MUTUAL FUNDS WHICH TYPICALLY BUY DOLLARS TO PROTECT THE YEAR'S RETURNS AGAINST CURRENCY FLUCTUATIONS WHAT HEDGING THERE IS WILL LIKELY BE SPREAD AMONG MORE CURRENCIES MANY GLOBAL BOND FUNDS HEDGED THEIR CURRENCY RISK EARLY IN THE YEAR BETTING THAT THE DOLLAR WOULD RISE ROUGHLY TO CURRENT LEVELS SAYS ROBERT STEIN CHIEF DEALER FOR PROPRIETARY TRADING AT BARCLAYS BANK FUNDS ARE ALSO HEDGING SPECIFIC EUROPEAN CURRENCIES INSTEAD OF USING THE MARK AS A PROXY SAYS MR EVANGELISTA OF BANK OF BOSTON THE COLLAPSE OF THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM BOTH DECOUPLED THE MARK FROM CONTINENTAL CURRENCIES AND BOOSTED TRADING IN MINOR CURRENCIES HE SAYS MARKETS IN CURRENCIES SUCH AS THE ITALIAN LIRA SPANISH PESETA AND SWEDISH KRONA HAVE BECOME MORE LIQUID THOSE CURRENCIES HAVE PICKED UP STEAM HE SAYS THERE'S MUCH MORE DIRECT TRADING THAT MEANS THAT THE IMPACT OF HEDGING ON DOLLARMARK RATES WILL BE MILDER HE SAYS FOR TRADITIONAL CORPORATIONS THE PERCENTAGE OF MARKS BEING HEDGED IS LESS THE FEAR IS THAT THE EMS ISN'T SECURE ANY MORE BUT WHILE SOME DEALERS SAY THAT TRADING IS ALREADY BEGINNING TO WIND DOWN FOR 1993 THEY EXPECT SPECULATORS TO DRIVE THE DOLLAR HIGHER IN THE COMING WEEKS AN IMPROVEMENT IN US ECONOMIC REPORTS AND A BLEAK OUTLOOK IN JAPAN AND MUCH OF EUROPE BODE WELL FOR THE US CURRENCY THEY SAY WE'LL HAVE FITS AND STARTS AND PROFITTAKING SAYS MS SILVESTER OF ABN AMRO BUT THE FOUNDATION IS BEING LAID FOR A STRONGER DOLLAR ENVIRONMENT FRIDAY'S US EMPLOYMENT REPORT WHICH SHOWED OCTOBER NONFARM PAYROLLS UP 177000 HELPED REINFORCE PERCEPTIONS OF A US RECOVERY TAKING HOLD TRADERS SAY 9311080007 931108 LEISURE & ARTS TELEVISION HER AND THEM BY ROBERT GOLDBERG EVEN THE SHARPTONGUED DOROTHY PARKER WAS STUNNED INTO ADMIRATION WHEN SHE FIRST SAW THEM F SCOTT AND ZELDA FITZGERALD THE GOLDEN COUPLE OF THE 1920S STRIKING SHE NOTED THEY LOOKED AS THOUGH THEY HAD JUST STEPPED OUT OF THE SUN FAME MONEY ELEGANT SOIREES AND FRONTPAGE HEADLINES THIS CHARMED PAIR THE NOVELIST AND THE FLAPPER HAD IT ALL AND A PIECE OF LITERARY HISTORY TOO BUT AS THE JAZZ AGE SLID INTO THE GREAT DEPRESSION SO TOO DID SCOTT AND ZELDA THEIR ROMANCE THEIR ALLCONSUMING FAME THE WILD DAYS AND NIGHTCLUB NIGHTS THE DESCENT INTO ALCOHOLISM AND NERVOUS BREAKDOWNS IT'S THE STUFF OF A MADEFORTV MOVIE AND THIS WEEK THAT MOVIE ARRIVES ZELDA TNT WEDNESDAY 10 PM EST UNDER THE CHARMED LIGHTS OF A DANCE PAVILION ON A SULTRY SUMMER EVENING IN ALABAMA 1918 A SOLDIER AND A SOUTHERN BELLE LOCK EYES AND WITHIN MINUTES THEY'RE SKINNYDIPPING IN THE MOONLIGHT WILL YOU BRING NO END OF HAPPINESS TO ME ZELDA ASKS SCOTT ZELDA SMILES FLIRTATIOUSLY MISERY SHE SAYS NO END OF MISERY SCOTT AS THE YOUNG LOVERS TIMOTHY HUTTON AND NATASHA RICHARDSON MAKE AN ATTRACTIVE PAIR COMING TO NEW YORK AND LAUNCHING INTO THE GREATEST GAUDIEST SPREE IN THE HISTORY OF TIME SHE'S SEXY HE'S DASHING AND THEY DANCE THE NIGHT AWAY IN CAFES WHERE THE TRUMPETS ARE ALWAYS CROONING AND THE CHAMPAGNE NEVER STOPS THEY DO MADCAP THINGS LIKE RIDING AROUND ON TOP OF CARS WHOOPING AND HOLLERING AND PERHAPS MOST MADCAP OF ALL HE SETS OUT TO MAKE A LIVING WRITING NOVELS BUT AS A JOURNALIST WHO COMES TO INTERVIEW MRS FITZGERALD REMINDS US THIS IS ABOVE ALL ZELDA'S STORY AS SCOTT BECOMES A LITERARY LION WE SEE HER DABBLE IN PAINTING IT FILLS PLACES THAT DON'T SEEM FILLABLE WRITING I ONCE SAW THE SURFACE CRACK FOR A MINUTE AND SOMETHING SAVAGE UNCANNY AND FRIGHTENING REARED ITS HEAD MOTHERHOOD AND FINALLY DANCE WE SEE HER LONELINESS HER BITTERNESS YOU'VE APPROPRIATED MY WHOLE LIFE SCOTT YOU'VE STOLEN EVERYTHING I HAD PLAGIARIZED EVERYTHING I EVER SAID AND LASTLY THERE IS HER TERRIFIED COLLAPSE INTO MENTAL ILLNESS WHEN A LIFE THAT WAS ALWAYS IMPETUOUS AND WILD FINALLY FALLS APART ALTOGETHER AS WRITTEN BY ANTHONY IVOR AND BENEDICT FITZGERALD AND DIRECTED BY PAT O'CONNOR THIS PORTRAIT HAS A CERTAIN PSYCHOLOGICAL DEPTH BUT IN LIVES AS OFTEN EXAMINED AS ZELDA AND SCOTT'S IT FEELS AS IF MUCH IS LEFT OUT HER ATTEMPTS AT SUICIDE HER USE OF MORPHINE HER SUSPICIONS OF SCOTT'S HOMOSEXUALITY THEN TOO SOME FACTS ARE SIMPLY WRONG SHE WOULDN'T EVEN DATE HIM AFTER THEIR FIRST DANCE LET ALONE GO SKINNYDIPPING I DON'T GO OUT FOR LATE DATES WITH FAST WORKERS SHE IS SAID TO HAVE TOLD HIM DELETION AND CONFLATION ARE NECESSARY EVILS WHEN YOU TRY TO SHOEHORN A MESSY LIFE INTO AN HOUR AND A HALF AND THEY WOULD BE UNDERSTANDABLE IF THEY GAVE ZELDA A CLEAR STORY LINE BUT THAT'S EXACTLY WHAT THIS PRODUCTION LACKS A HODGEPODGE OF EVENTS AND QUOTATIONS INCIDENTS AND POSES THIS TV BIOPIC NEVER ACHIEVES A DRAMATIC SHAPE IT'S INTELLIGENT BUT UNFOCUSED SECONDARY CHARACTERS DRIFT IN AND OUT FOR NO APPARENT REASON AND ZELDA'S LIFE PLAYS OUT AS A STRING OF ANECDOTES WHAT'S MISSING IS A POINT OF VIEW IS ZELDA A DILETTANTE OR A GREAT STIFLED TALENT ARE WE TO BELIEVE THAT SCOTT'S PHILANDERING AND HIS CARELESS DISREGARD FOR ZELDA CAUSED HER BREAKDOWN OR CONVERSELY AS ERNEST HEMINGWAY WOULD WRITE TO HIS FRIEND ZELDA IS CRAZY THERE'S NOTHING WRONG WITH YOU ZELDA JUST WANTS TO DESTROY YOU IN THE END IT'S MS RICHARDSON'S FINE PERFORMANCE AS ZELDA THAT SAVES THIS PRODUCTION THAT MAKES IT SO WATCHABLE SHE GIVES TRAGIC WEIGHT TO HER CHARACTER DANCING ON THE LINE BETWEEN EXUBERANCE AND PAIN CREATIVITY AND MADNESS AROUND THE DIAL THIS WEEK IT'S A PLEASURE TO SEE ANOTHER GREAT BRITISH ACTRESS AT WORK ALSO EMPLOYING A SOUTHERN ACCENT IN FACT MS RICHARDSON'S MOTHER VANESSA REDGRAVE SHE STARS IN THEY SHOWTIME SUNDAY 8 PM AN EERIE TEARJERKER ABOUT A WORKOBSESSED ARCHITECT MARK SAMUELS PATRICK BERGIN WHOSE DAUGHTER NIKKI DIES IN A CAR CRASH JUST AS SHE'S ASKING HER MOTHER DOES DADDY LOVE ME AFTER THE FUNERAL MARK TRIES TO PACK HIS DAUGHTER'S BELONGINGS AWAY TO BOX UP HIS SORROW BUT SEVERAL EXTREME CLOSEUPS ON HIS EYES TELL US HE'S STILL IN PAIN HE STARTS SEEING THINGS HEARING THINGS THAT DAMN MUSIC BOX AND SUDDENLY A STRANGE PICTURE SHOWS UP IN HIS BRIEFCASE A PICTURE THAT LEADS HIM TO AN OLD SOUTH CAROLINA PLANTATION WHERE THE SPANISH MOSS HANGS HEAVY ON THE OAK TREES THE LADY OF THE HOUSE MS REDGRAVE MAY BE BLIND BUT SHE'S IN TOUCH WITH THE SPIRITS IN FACT SPIRITS SEEM TO BE OVERRUNNING HER PLANTATION THEY'RE LOST SOULS SHE SAYS LITTLE ONES TIED TO THE EARTH THEY CAN ONLY LEAVE ON THE TEARS OF THOSE WHO LOVE THEM WHEN OUR HERO WANDERS THE GROUNDS HE IS SUBJECTED TO FLICKERING SHADOWS SPOOKY GIGGLES AND WHISPERS THE WHOLE SUPERNATURAL SHEBANG AND SOON ENOUGH HE'LL HAVE AN OTHERWORLDLY REUNION WITH HIS DAUGHTER IF HE CAN FEND OFF AN EVIL SPIRIT IN THE GUISE OF AN OWL SOMEHOW MS REDGRAVE MANAGES TO RISE ABOVE THIS GHOST STORY AND GIVE HER CHARACTER A SIMPLE DIGNITY BUT OTHERWISE THEY IS A FUZZYHEADED CONCOCTION OF OLD WORLD MYSTICISM AND NEW AGE MUMBOJUMBO HALF HORROR FILM HALF HEARTWARMING FAMILY STORY SOME MIGHT SEE THIS WEEK'S ORIGINAL PRODUCTIONS AS A WASTE OF GOOD TALENT BUT I PREFER TO LOOK ON THE POSITIVE SIDE WITH THE ACTORS THEY'RE HIRING AND THE MATERIAL THEY'RE TRYING TO COVER THE CABLE CHANNELS ARE CLEARLY TRYING TO TAKE ON MOREAMBITIOUS PROJECTS RIGHT NOW IT'S ALL ASPIRATION ALL SOCIAL CLIMBING BUT WITH FILMS SUCH AS TNT'S HEART OF DARKNESS LOOMING AHEAD I LIKE TO THINK THAT THE CABLECASTERS MAY YET GET IT RIGHT 9311080006 931108 TO ENSURE HIGH PRICES SOME HAULERS HAVE BEEN KNOWN TO BREAK THE RULES BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL TO ENFORCE THE HIGH PRICES OF THE CARTEL SYSTEM PROTECT THEIR POSITIONS OF INFLUENCE AND ENRICH THEMSELVES MOB MEMBERS AND THEIR ASSOCIATES HAVE ENGAGED IN MURDER ENVIRONMENTAL CRIMES BRIBERY OF PUBLIC OFFICIALS AND TRUCK SABOTAGE BASED ON ALLEGATIONS IN INDICTMENTS AFFIDAVITS AND OTHER FILINGS IN FEDERAL COURT IN MANHATTAN AND BROOKLYN HERE ARE SOME OF THE KEY PLAYERS JAMES FAILLA HAS CONTROLLED MUCH OF NEW YORK HAULING WHILE WORKING AT THE MANHATTAN HAULERS GROUP ASSOCIATIONS OF TRADE WASTE REMOVERS OF GREATER NEW YORK AND VIA HIS CONTROL UNTIL RECENTLY OF TEAMSTERS LOCAL 813 WHICH REPRESENTS WORKERS IN THE HAULING BUSINESS KNOWN AS JIMMY BROWN HE WAS AT SPARKS STEAK HOUSE IN MANHATTAN ON DEC 16 1985 WAITING TO HAVE DINNER WITH PAUL CASTELLANO BOSS OF THE GAMBINO CRIME FAMILY MR CASTELLANO WAS GUNNED DOWN AS HE ARRIVED BY ORDER OF JOHN GOTTI WHO TOOK OVER THE FAMILY BUT ALLEGEDLY KEPT MR FAILLA NOW 74 YEARS OLD AS A FAMILY CAPTAIN MR FAILLA WAS INDICTED LAST APRIL ON CHARGES THAT HE AND MR GOTTI ARRANGED THE 1989 MURDER OF THOMAS SPINELLI A MOBSTER WHO WAS ABOUT TO TESTIFY BEFORE A FEDERAL GRAND JURY AND ON RACKETEERING CHARGES INVOLVING HIS CONTROL OF HAULING ACTIVITIES HE PLEADED NOT GUILTY TRIAL IS IN APRIL MARTIN MCLAUGHLIN A LOBBYIST FOR THE HAULERS' UMBRELLA GROUP COUNCIL OF TRADE WASTE ASSOCIATIONS INC SAYS MR FAILLA'S ROLE WITH THE MANHATTAN GROUP IS DIMINISHED AND PERHAPS OVER HE'S VERY SICK AND HASN'T BEEN AROUND FOR THREE OR FOUR MONTHS MAYBE HE WON'T BE BACK SALVATORE AVELLINO PROVIDED PERHAPS THE MOST EXTENSIVE LOOK AT MOB CONTROL OF HAULING BY DOING BUSINESS WHILE DRIVING AROUND LONG ISLAND IN HIS JAGUAR IN WHICH THE GOVERNMENT HAD PLACED LISTENING DEVICES A CAPTAIN IN THE LUCCHESE FAMILY ANOTHER OF THE FIVE ORGANIZEDCRIME FAMILIES IN NEW YORK MR AVELLINO OWNED A HAULING COMPANY AND OVERSAW THE INDUSTRY THROUGH THE PRIVATE SANITATION INDUSTRY ASSOCIATION OF NASSAU/SUFFOLK INC HE COLLECTED SO MUCH CASH FROM HAULERS IN RETURN FOR POLICING THE CARTEL THAT HE COMPLAINED TO AN ASSOCIATE IN 1983 I CAN'T EVEN CARRY THAT ACCORDING TO FEDERAL PROSECUTORS HALF THE MONEY WENT TO HIS LUCCHESE BOSS ANTONIO TONY DUCKS CORALLO AT THE TIME AND HALF TO MR FAILLA BECAUSE LOCAL 813 OPERATED ON LONG ISLAND TOO ON TAPE MR AVELLINO DISCUSSED THE FINER POINTS OF PUNISHING A HAULER WHO DOESN'T ABIDE BY THE CARTEL'S RULES WE PUT AH NUTS AND BOLTS INTO THE ENGINES MR CORALLO TOLD HIM TO BE MORE SUBTLE YOU PUT METAL SHAVINGS IN THE OIL ROBERT KUBECKA WAS A LONG ISLAND HAULER WHO WOULDN'T COOPERATE WITH THE CARTEL'S PRICE FIXING COMPETING FOR CUSTOMERS INSTEAD IT WAS MR AVELLINO'S JOB TO BRING HIM INTO LINE BUT LAWENFORCEMENT SCRUTINY WAS TYING HIS HANDS HE FELT HE WAS LETTING THE HAULERS DOWN I KNOW IN MY HEART I'M NOT SERVICING THESE PEOPLE HE TOLD MR SANTORO GOTTA GO THERE AND TAKE THE F MONEY YOU KNOW WHAT AN EMBARRASSMENT THAT IS THE GOVERNMENT BROUGHT A CIVIL RACKETEERING CASE AGAINST MR AVELLINO AND OTHERS IN JUNE 1989 AND MR KUBECKA WAS EXPECTED TO TESTIFY THAT AUGUST MR KUBECKA AND HIS BROTHERINLAW DONALD BARSTOW WERE SHOT TO DEATH MR AVELLINO WHO ALLEGEDLY APPROACHED ANOTHER MAFIA MEMBER AS EARLY AS LATE 1988 TO ARRANGE THE KILLING WAS INDICTED LAST APRIL ON MURDER CHARGES HE PLEADED NOT GUILTY A FEDERAL JUDGE BARRED HIM FROM THE TRASH INDUSTRY LAST DECEMBER HE WAS DENIED BAIL IN THE MURDER CASE TRIAL IS SET FOR FEBRUARY LOUIS J AND ROBERT A MONGELLI HAULERS NORTH OF THE CITY AND ASSOCIATES OF GENOVESE FAMILY MEMBERS HEARD ABOUT THE BUG IN MR AVELLINO'S CAR ROBERT INSISTED ON TALKING IN A NOISY GARAGE TO AVOID BEING TAPED THAT'S HOW THEY GOT ALL THOSE GUYS BUGS RIGHT IN THE DASHBOARD BY THE TIME ROBERT SAID THAT IN OCTOBER 1988 THE GOVERNMENT HAD BUGWEARING INFORMANTS IN THE MONGELLI BROTHERS' MIDST THE MONGELLIS SOUGHT TO DIVVY UP HAULING TERRITORIES LOUIS NOTING IN ONE INSTANCE THAT THEN THEY CAN ALL RAISE THEIR PRICE 30 ACROSS THE BOARD THEY LAUNDERED MILLIONS OF DOLLARS TO AVOID TAXES THEY PLEADED GUILTY TO THAT AS WELL AS TO RACKETEERING AND TAX EVASION THEY ABANDONED A DUMP THAT BECAME A 14 MILLION CLEANUP SITE LEAVING ROBERT'S MOTHERINLAW AS THE SOLE STOCKHOLDER DIRECTOR AND OFFICER ACCORDING TO PROSECUTORS' SENTENCING MEMORANDUM AND THEY OFFERED HUNDREDS OF THOUSANDS OF DOLLARS PLUS FREE USE OF LOUIS'S CONDOMINIUM IN PALM BEACH FLA A 92FOOT YACHT AND A BROAD' IN BRIBES TO A STATE OFFICIAL FOR HELP WITH DUMP PERMITS ANTHONY VULPIS AND ANGELO PACCIONE BIG HAULERS IN BROOKLYN AND QUEENS BOTH HAD MOB TIES ACCORDING TO DOCUMENTS FILED IN FEDERAL COURT IN MANHATTAN IN 1988 THEY GOT PERMITS TO RUN A CLEAN FILL ON STATEN ISLAND BUT TURNED IT INTO A FULLSCALE DUMPTAKING TRASH MEDICAL WASTE AND ASBESTOS THE CLEANUP BILL WOULD HIT 15 MILLION THEY ALSO RAN A MEDICALWASTE BUSINESS THAT ADVERTISED AGGRESSIVELY IS YOUR MEDICAL WASTE BEING WASHED UP ON A BEACH YOU COULD BE PROSECUTED LET US HANDLE YOUR WASTE PROBLEMS BUT THEIR PERMITS WERE BOGUS AND THE OPERATION SLIPSHOD A TRUCK FULL OF MEDICAL WASTE INCLUDING BLOOD VIALS AND HUMAN ORGANS SAT ON THE STREET LEAKING FOR TWO WEEKS THE GOVERNMENT TOOK THEIR HAULING COMPANIES TO SATISFY A 22 MILLION JUDGMENT RELATED TO THE DUMP CLEANUP AND OTHER VIOLATIONS 9311080005 931108 RJR TO REDEEM PREFERRED NEW YORK RJR NABISCO HOLDINGS CORP SAID IT CALLED FOR THE REDEMPTION OF ALL ITS OUTSTANDING CUMULATIVE CONVERTIBLE PREFERRED STOCK VALUED AT ABOUT 1106 MILLION THE FOOD AND TOBACCO COMPANY SAID THE REDEMPTION PRICE IS 2743 A SHARE WHICH INCLUDES THE 270125ASHARE PRICE PLUS ACCRUED DIVIDENDS THERE ARE SLIGHTLY MORE THAN FOUR MILLION SHARES OF REDEEMABLE PREFERRED OUTSTANDING THE STOCK CAN BE CONVERTED UNTIL 5 PM EST DEC 6 WHICH IS ALSO THE REDEMPTION DATE 9311080004 931108 SMALL STOCK FOCUS SOME SEE SILVER LINING IN FALLOUT FROM RATE RISE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HAS LAST WEEK'S DEBACLE IN SMALL STOCKS GOT YOU WORRIED YOU'D BETTER BE IF YOU'VE GOT A PORTFOLIO LOADED UP WITH INTERESTRATESENSITIVE STOCKS BUT IF YOU'VE BEEN BETTING ON A STRONG ECONOMIC RECOVERY SIT BACK ENJOY YOUR RIDE AND KEEP YOUR EYES ON THE ROAD ANALYSTS SURVEYING THE CARNAGE OF LAST WEEK'S STOCK MARKET SELLOFF IN BOTH LARGE AND SMALL ISSUES AREN'T RECOMMENDING THAT INVESTORS HEAD FOR THE HILLS INSTEAD INVESTORS SHOULD TREAT THE SMALLSTOCK MARKET WITH CAUTIOUS OPTIMISM THEY SAY NOT THE EUPHORIA THAT HAS DOMINATED SENTIMENT FOR THE PAST SEVERAL MONTHS WHEN WE'VE HAD THE KIND OF RUN WE'VE HAD AND MANY PORTFOLIO MANAGERS HAVE HAD A VERY GOOD YEAR IT'S GOING TO BE VERY DIFFICULT IN THE SHORT TERM TO DO WELL IN ANY STOCKS BIG OR SMALL SAYS CHRIS MCLELLAN SENIOR TRADER AT ROBERTSON STEPHENS & CO IN SAN FRANCISCO FOR ESPECIALLY NERVOUS INVESTORS HE CAUTIONS THAT WE'RE IN A PERIOD WHERE YOU PROBABLY WANT TO BE ON THE SIDELINES UNTIL THIS SETTLES DOWN MOST TRADERS AND ANALYSTS AGREE THAT THE LIKELY CAUSE OF LAST WEEK'S SELLOFF IN STOCKS WAS A SHARP INCREASE IN LONGTERM INTEREST RATES YIELDS ON THE GOVERNMENT'S BENCHMARK 30YEAR BOND SHOT UP DURING THE COURSE OF THE WEEK TO 620 FROM 603 AND THE BOND MARKET'S TROUBLES STEMMED FROM A STEADY DRUMBEAT OF POSITIVE ECONOMIC STATISTICS CAPPED BY FRIDAY'S UPBEAT EMPLOYMENT REPORT THE ECONOMIC STATISTICS AND THE BOND MARKET'S REACTION RAISES YELLOW FLAGS OVER STOCK PORTFOLIOS LADEN WITH UTILITY FINANCIALSERVICE AND REALESTATE INVESTMENT TRUST STOCKS WHILE SUCH PORTFOLIOS OUTPERFORMED THE SMALLCAP AVERAGES IN THE FIRST HALF OF THIS YEAR THE RECENT INCREASE IN RATES CHANGES THE PICTURE CONSUMER FINANCIAL ISSUES COULD BE VULNERABLE BECAUSE THEY'VE HAD GOOD PRICE APPRECIATION THIS YEAR AND THE SAME IS TRUE WITH REITS SAYS SUSAN HIRSCH SENIOR ANALYST WITH LEHMAN BROTHERS SHE ADDS HOWEVER THAT WE WOULD NOT BE A SELLER OF THOSE GROUPS THIS LOOKS LIKE A TEMPORARY CORRECTION WE'RE NOT TALKING ABOUT AN ENVIRONMENT WHERE INTEREST RATES ARE OUT OF CONTROL DESPITE ALL THE CONCERN ABOUT WHAT RISING RATES WILL DO TO STOCKS MANY ANALYSTS ARGUE THAT THE GOOD ECONOMIC NEWS IS JUST WHAT THE STOCK MARKET ESPECIALLY SMALL STOCKS NEEDED IF BOND YIELDS GO BACK UP MODESTLY IT TELLS YOU THAT THE ECONOMY IS DOING BETTER AND THAT'S WHAT SMALLSTOCK COMPANIES WANT TO HEAR SAYS PETER CANELO CHIEF MARKET STRATEGIST WITH NATWEST SECURITIES IN NEW YORK SMALL COMPANIES HE SAYS ARE PARTICULARLY WELLPOSITIONED TO RESPOND RAPIDLY TO ANY PICKUP IN DEMAND FOR THEIR PRODUCTS OR SERVICES AND IF HE AND OTHER ANALYSTS ARE RIGHT THE DROP IN SHARE PRICES LAST WEEK HAS CREATED BUYING OPPORTUNITIES AMONG SOME LEADERSHIP STOCKS THAT WERE EXCESSIVELY PUNISHED TELECOMMUNICATIONS AND TECHNOLOGY STOCKS FOR EXAMPLE ARE LIKELY TO BE IN FOR A PAUSE BUT SHOULD RESUME THEIR UPWARD TREND ON POSITIVE FUNDAMENTALS THEY ASSERT THE SMALLCAP TELECOMS AND HIGHTECH COMPANIES WERE OVERCOOKED AND WERE DUE FOR A CORRECTION SAYS AC MOORE A SENIOR STRATEGIST WITH ARGUS INVESTMENT MANAGEMENT IN SANTA BARBARA CALIF THEY'RE TAKING A BREATHER BUT THEY'LL BE BACK BUT MR MOORE CAUTIONS THAT INVESTORS ARE GOING TO HAVE TO BE MORE SELECTIVE ABOUT WHICH SMALL STOCKS THEY OWN SMALLSTOCK SHOPPERS SHOULD BE LOOKING FOR HIGHTECH AND OTHER GROWTH COMPANIES THAT ARE GOING TO JUSTIFY THEIR RELATIVELY HIGH EARNINGS MULTIPLES WITH SUSTAINED OUTPERFORMING RESULTS AMONG THE ISSUES THAT LOOK ATTRACTIVE HE SAYS ARE COMPUTER ASSOCIATES INTERNATIONAL A SYSTEMSSOFTWARE COMPANY EMC CORP WHICH MANUFACTURES COMPUTER MEMORY SYSTEMS LDDS COMMUNICATIONS A LONGDISTANCE TELEPHONE COMPANY MASCO TECH INC A CUSTOMENGINEERING COMPANY POSITION CORP OF AMERICA A MANAGEDHEALTHCARE GROUP AND THREE GOLD MINING COMPANIES HOMESTAKE MINING PLACER DOME INC AND AMERICAN BARRICK RESOURCES EVEN IN AN ACCELERATING ECONOMIC RECOVERY IT ISN'T JUST ECONOMICALLY SENSITIVE STOCKS THAT CAN BENEFIT SOME MONEY MANAGERS SUGGEST THAT BOTH POLLUTIONCONTROL AND HEALTHCARE STOCKS ARE CHEAP ENOUGH TO WARRANT INVESTOR ATTENTION FOR EXAMPLE PRESTON ATHEY WHO RUNS T ROWE PRICE'S SMALL CAP VALUE FUND SAYS THAT MANY SMALLERSIZED POLLUTIONCONTROL STOCKS ARE TRADING AT THEIR LOWEST PRICE LEVELS SINCE THE LATE 1980S ALSO HE NOTES THE POLITICAL CLIMATE IS FAVORABLE I BELIEVE WE'RE GOING TO START SEEING EVIDENCE THAT THE ENVIRONMENTAL PROTECTION AGENCY WILL GET TOUGHER WITH MANUFACTURING COMPANIES ON POLLUTION CONTROL HE SAYS THIS DEMOCRATIC ADMINISTRATION WAS ELECTED ON A PROENVIRONMENT PLATFORM AND I THINK IT'S GOING TO BE MORE ACTIVIST THAN THE PRECEDING BUSH AND REAGAN ADMINISTRATIONS AMONG THE CLEANENVIRONMENT ISSUES HE FAVORS IS BHA GROUP INC A SUPPLIER OF AIRPOLLUTIONCONTROL EQUIPMENT AND EMCON INC AN ENGINEERING AND CONSULTING FIRM INVOLVED IN THE DESIGN AND DEVELOPMENT OF HAZARDOUSWASTE SITES AND OTHER POLLUTIONCONTROL FACILITIES ANOTHER SMALLCAP THEME THAT MR ATHEY SEES HOLDING PROMISE IS HEALTH CARE TRADITIONALLY REGARDED AS GOGO GROWTH STOCKS WITH HIGH PRICETOEARNINGS MULTIPLES A NUMBER OF HEALTHCAR STOCKS SHOULD NOW BE PLACED IN A VALUE CAMP OFFERING POSITIVE RETURNS HE SAYS WITH SOME REAL DIGGING VALUES ARE TO BE HAD IN HEALTH CARE HE SAYS BECAUSE OF THE TURMOIL FROM THE HEALTHCARE REFORM PROPOSALS BEING BANDIED ABOUT IN WASHINGTON AND THE RESULTING HIT HEALTHCARE SHARES HAVE SUFFERED MANY ISSUES LOOK INEXPENSIVE HE SAYS HE LIKES FOR INSTANCE A NURSINGHOME MANAGEMENT COMPANY NATIONAL HEALTHCORP LP A LIMITED PARTNERSHIP LISTED ON NEW YORK STOCK EXCHANGE MS HIRSCH THE LEHMAN ANALYST LIKES VITAL SIGNS WHICH MAKES DISPOSABLE MEDICAL PRODUCTS SUCH AS SURGEON'S MASKS PRUDENTIAL SECURITIES SMALLCAP ANALYSTS ALSO RATE THE STOCK A BUY SMALL STOCKS ENDED FLAT FRIDAY REBOUNDING FROM STEEP EARLY LOSSES THE RUSSELL 2000 INDEX WHICH TRACKS THE PERFORMANCE OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES ENDED UNCHANGED AT 25311 AFTER FALLING MORE THAN 3 POINTS DURING THE DAY THE BAROMETER HAS DROPPED 27 FROM THE RECORD HIGH OF 26017 SET TUESDAY ANOTHER EARLY RISE IN INTEREST RATES SENT BUYERS FLEEING BUT BY LATE AFTERNOON SMALLER STOCKS SHOWED LITTLE CHANGE DESPITE THE DAY'S WILD MOVES THERE WAS SOME BARGAIN HUNTING AFTER THE LAST COUPLE OF SESSIONS SAID TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO BUT MANY OF THESE STOCKS JUST REVERSED COURSE WHEN BONDS IMPROVED A LITTLE THE NEWISSUE MARKET WAS HOT AGAIN ITRON INC CLOSED AT 15 1/4 UP FROM ITS 1350 OFFERING PRICE THE COMPANY SUPPLIES INTEGRATED COMPUTER SOLUTIONS FOR THE REMOTE DATA MANAGEMENT NEEDS OF ELECTRIC GAS AND WATER UTILITIES ENVIROTEST SYSTEMS CORP JUMPED 3 3/4 TO 22 1/2 THE TUCSCON ARIZ COMPANY SAID IT HAS RECEIVED NEW YORK STATE'S LARGEST AUTOEMISSIONS TESTING CONTRACT COVERING THE DOWNSTATE REGION WHICH INCLUDES NEW YORK CITY THE CONTRACT WILL GENERATE ANNUAL REVENUE OF 77 MILLION AN INITIAL STRONG BUY RATING FROM ALEX BROWN & SONS INC HELPED SEND HBO & CO AN ATLANTA DESIGNER OF COMPUTERBASED INFORMATION SYSTEMS AND SOFTWARE PACKAGES SOARING 4 1/8 TO 39 1/4 SPORTMART INC GAINED 1 1/4 TO 13 AFTER MONTGOMERY SECURITIES ANALYST TOM COURTNEY INITIATED COVERAGE WITH A BUY RECOMMENDATION MR COURTNEY REPORTEDLY CITED THE SPORTING GOODS RETAILER'S STRONG MARKET POSITION IN A HIGHLY FRAGMENTED 35 BILLION INDUSTRY THAT CONTINUES TO GROW EARNINGSRELATED NEWS CONTINUED AS A DRIVING FORCE MATERIAL SCIENCES CORP NYSE DROPPED 3 TO 22 1/2 ON A DISAPPOINTING FISCALYEAR OUTLOOK AFTER THE CLOSE YESTERDAY THE ELK GROVE VILLAGE ILL LAMINATED MATERIALS MAKER SAID ITS EARNINGS WILL LIKELY FALL 10 TO 12 BELOW ANALYSTS' CURRENT ESTIMATES DUE TO LOWERTHANEXPECTED SHIPMENTS IN ONE PRODUCT LINE AND HIGHERTHANEXPECTED COSTS IN ANOTHER FOR FISCAL 1993 MATERIAL SCIENCES POSTED NET INCOME OF 1 A SHARE ANALYSTS HAD EXPECTED FISCAL 1994 EARNINGS TO COME IN AT ABOUT 130 A SHARE CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9311080002 931108 BUSINESS BRIEF ROYAL BANK OF CANADA EXPECTS A LOSS OF 3259 MILLION FOR FISCAL 4TH PERIOD TORONTO ROYAL BANK OF CANADA SAID IT EXPECTS TO REPORT A LOSS OF 425 MILLION CANADIAN DOLLARS US3259 MILLION OR C150 A SHARE FOR ITS FISCAL FOURTHQUARTER AS THE BANK CONTINUES TO GRAPPLE WITH ITS PORTFOLIO OF RISKY COMMERCIAL PROPERTY LOANS MAINLY IN THE TORONTO AREA CANADA'S LARGEST BANK SAID THE LOSS RESULTS FROM INCREASED PROVISIONS AGAINST NONPERFORMING LOANS WHICH ARE CHARGED AGAINST EARNINGS IN THE YEAREARLIER QUARTER THE BANK HAD A LOSS OF C473 MILLION OR C163 A SHARE THE BANK SAID TOTAL CHARGES FOR THE FISCAL YEAR ENDED OCT 31 WILL BE C216 BILLION INCLUDING C175 BILLION RELATED TO ITS PROPERTY PORTFOLIO AND C410 MILLION TO PAY MAINLY FOR INTEGRATING THE RECENTLY ACQUIRED OPERATIONS OF ROYAL TRUSTCO LTD LAST YEAR CHARGES TOTALED C218 BILLION ANALYSTS MANY OF WHOM EXPECTED SOME INCREASE IN LOANLOSS PROVISIONS WERE SURPRISED BY THE SIZE OF THE ADDITIONAL CHARGE SOME ALSO WERE ANNOYED THAT THE BANK HAD INCREASED ITS PROVISIONS FOR THE SECOND TIME IN AS MANY QUARTERS IN TORONTO STOCK EXCHANGE TRADING FRIDAY ROYAL BANK SHARES CLOSED AT C2650 DOWN 625 CANADIAN CENTS ROYAL BANK SAID THAT BY TAKING THE PROVISIONS NOW IT WAS CLEARING THE WAY TO REPORT HIGHER EARNINGS IN FISCAL 1994 WHEN IT EXPECTS LOANLOSS PROVISIONS WILL DROP TO ABOUT C900 MILLION WE WANT TO PUT THESE LOAN PROBLEMS BEHIND US I CAN'T BLAME PEOPLE FOR BEING SKEPTICAL ROYAL BANK WILL ONLY PROVE OVER TIME THAT IT IS REALLY CHANGING IN TERMS OF CREDITRISK MANAGEMENT SAID JAIME HARPER THE BANK'S MANAGER OF INVESTOR RELATIONS ROYAL BANK IS SUFFERING FROM ITS RISKY LENDING PRACTICES OF YEARS PAST PARTLY BECAUSE CANADA'S COMMERCIAL PROPERTY MARKET CONTINUES TO DETERIORATE EVEN AS US REAL ESTATE SHOWS SIGNS OF COMING BACK TO LIFE SINCE LATE LAST YEAR ROYAL BANK HAS TAKEN STEPS TO MAKE ITS LENDING PRACTICES MORE CONSERVATIVE MR HARPER SAID MEANWHILE STANDARD & POOR'S CORP SAID IT AFFIRMED ROYAL BANK'S CREDIT RATINGS FOLLOWING THE ANNOUNCEMENT OF AN EXPECTED LOSS FOR THE FOURTHQUARTER HOWEVER THE NEW YORK RATING CONCERN SAID THE BANK'S RATINGS OUTLOOK REMAINS NEGATIVE AND S&P WILL MONITOR THE BANK'S ABILITY TO INCREASE ITS PROFITS IN FISCAL 1994 ROYAL BANK SAID THE EXPECTED FOURTHPERIOD LOSS WILL RESULT IN A PROFIT FOR THE FULL YEAR OF ABOUT C300 MILLION COMPARED WITH A PROFIT OF C107 MILLION LAST YEAR 9311080001 931108 ZENECA UNIT'S MEDICATION WILMINGTON DEL ZENECA INC SAID ITS DIPRIVAN INJECTION MEDICATION NOW CAN BE USED AS A PEDIATRIC ANESTHESIA ZENECA A UNIT OF THE BRITISH BIOSCIENCE COMPANY ZENECA GROUP PLC SAID DIPRIVAN IS CURRENTLY USED FOR THE INDUCTION AND MAINTENANCE OF GENERAL ANESTHESIA FOR ADULTS AND HAD 1992 SALES OF 100 MILLION THE COMPANY SAID THE NEW APPLICATION FOR DIPRIVAN WILL BETTER POSITION THE COMPANY IN THE 12 BILLION US ANESTHESIA MARKET 9311080131 931018 PRICING HEALTH CARE THE HEALTH CARE INFLATION FANTASY BY JD KLEINKE IF THE SHINING CITY ON THE HILL PROMISED BY THE CLINTON HEALTH CARE REFORM PLAN SEEMS UNCOMFORTABLY LIKE A FANTASY THAT IS FOR GOOD REASON THE REDUCTIONS IN ADMINISTRATIVE COSTS THE PLAN EXPECTS TO ACHIEVE THROUGH THE CREATION OF A FEW HUNDRED NEW BUREAUCRACIES WILL BE A ONETIME WINDFALL BEYOND THAT THE PROPOSAL IS BASED ON ONE CORE ASSUMPTION SO CRITICAL TO ITS FINANCING AND YET SO UNEXAMINED IN THE DEBATE THAT FEW HAVE STOPPED TO RECOGNIZE IT FOR THE FANTASY IT IS THE FANTASY THAT HEALTH CARE SPENDING CAN EVER BE HELD ANYWHERE NEAR THE RATE OF INFLATION THE CLINTON PLAN PROPOSES TO BRING ANNUAL HEALTH CARE EXPENDITURE GROWTH IN LINE WITH THE CONSUMER PRICE INDEX THROUGH CAPS ON PUBLIC AND PRIVATE SPENDING WITH MINOR ADJUSTMENTS FOR POPULATION INCREASES ASSUMING FOR A MOMENT THAT STAGNATING THE GROWTH OF AN ENORMOUS INDUSTRY IN A FRAGILE VOLATILE ECONOMY IS A GOOD THING WHAT WOULD THE REFORMERS NEED TO DO TO TURN THIS FANTASY INTO REALITY THEY WOULD NEED TO REVERSE TWO INEXORABLE FACTS ABOUT AMERICAN SOCIETY FIRST THE US POPULATION WILL CONTINUE TO GROW OLDER GET SICK AND EXPECT CURES WHERE NO CURES EXIST WE WILL DEMAND RELIEF FROM SUFFERING SUCH RELIEF IS EXPENSIVE AND IT BECOMES INCREASINGLY SO WITH THE AGING OF THE AVERAGE PATIENT DEMANDING IT SECOND MEDICAL SCIENCE WILL CONTINUE TO CONQUER DISEASES THAT CURRENTLY CLAIM HUMAN LIVES REGARDLESS OF THE FINANCIAL DISINCENTIVES IMPOSED BY THE REFORM PLAN SUCH CONQUESTS ARE AND WILL CONTINUE TO BE EXTREMELY EXPENSIVE IN 1990 THERE WERE 33 MILLION AMERICANS OVER THE AGE OF 84 THIS NUMBER IS EXPECTED TO INCREASE TO BETWEEN 68 MILLION AND 83 MILLION BY 2010 A QUICK GLANCE AT THE NURSING HOME INDUSTRY UNDERSCORES THE EFFECTS OF THIS RISING DEMOGRAPHIC TIDE AND REVEALS THE FACT THAT LONGTERM CARE NOT NEW TECHNOLOGY OR RISING PREMIUMS OR HIGH DRUG PRICES IS DRIVING THE NUMBERS BETWEEN 1991 AND 1992 NURSING HOME EXPENDITURES ALONE ROSE 125 TO 673 BILLION FROM 598 BILLION A FULL POINT ABOVE THE HEALTH CARE INFLATION RATE THE OBVIOUS RESPONSE TO THIS DEMOGRAPHIC DRIVER OF HEALTH CARE INFLATION IS PRECISELY WHAT THE PROPOSED CONTROLS WILL EFFECT RATIONING OF HEALTH CARE FOR THE ELDERLY CENTRAL TO THE REFORM PLAN'S ELABORATE CHAIN OF COSTSAVINGS EVENTS IS THE ASSUMPTION THAT MEDICARE EXPENDITURES WILL BE HELD TO INFLATION PLUS BASELINE POPULATION GROWTH WHILE THE BENEFIT ACTUALLY EXPANDS IF THIS IS NOT A COMPLETE FANTASY ALREADY DESTINED FOR THE SCRAP HEAP OF DEFICIT REDUCTION AGREEMENTS THEN THE REALITY WILL BE RATIONING PARTICULARLY FOR THE GROWING POPULATION OF CHRONICALLY AND TERMINALLY ILL MEDICARE BENEFICIARIES THIS IS SOMETHING MOST AMERICANS WOULD FIND MORALLY REPUGNANT JUDGING BY THE DECISIONS THEY MAKE REGARDING THE SEVERELY ILL ELDERLY WITHIN THEIR OWN FAMILIES A REFORM PROGRAM THAT FORCES ORGANIZATIONS AND INDIVIDUALS TO BUY COVERAGE THEY DO NOT WANT AND THAT LAYS ONE MORE STATE BUREAUCRACY AND MANAGED CARE SYSTEM ON TOP OF EVERYTHING MAY ACTUALLY RESULT IN SOME NET SAVINGS IF SO THOSE SAVINGS WILL BE THE RESULT OF A ONETIME REALIGNMENT OF SYSTEMWIDE PRICING THE SAME WAY THE INTRODUCTION OF MANAGED CARE SYSTEMS ADDS A ONETIME REDUCTION IN PERPATIENT UTILIZATION DO NOT BE FOOLED BY COMPARISONS IN PREMIUM HIKES ANNUAL HMO PREMIUMS INCREASE AT COMPARATIVELY SLOWER RATES BECAUSE OF THEIR YOUNGER POPULATIONS ONE MORE ILLUSTRATION OF THE EFFECTS OF AGING ON HEALTH CARE INFLATION ALL THE HEALTH CARE REFORM LEGISLATION IN THE WORLD WILL DO NOTHING TO SLOW AN AGING POPULATION'S DEMAND FOR SERVICES REST ASSURED THE HEALTH CARE INFLATION BOGEYMAN WILL RIDE BACK IN ON THE DEMOGRAPHIC WAVE ONE YEAR AFTER HEALTH CARE REFORM'S PRICING AND UTILIZATION REALIGNMENTS ANOTHER FACT THE GOVERNMENT CANNOT LEGISLATE AWAY HEALTH CARE INFLATION IS THE RESULT OF MEDICAL PROGRESS DESPITE THE GOVERNMENT'S BEST EFFORTS TO SCARE AWAY INVESTMENT CAPITAL THERE WILL ALWAYS BE AN PRIVATE SECTOR EFFORT TO IMPROVE MEDICINE SUCH IMPROVEMENTS ARE NOT FREE THE CURRENT LEVEL OF HEALTH CARE INFLATION FOLLOWS A DECADE OF MAJOR BREAKTHROUGHS ON EVERYTHING FROM PREVIOUSLY UNTREATABLE CANCERS TO MORE COMMON KILLERS LIKE HEART DISEASE THIS SOCIETY HAS INVESTED A TREMENDOUS AMOUNT OF MONEY IN NEW DRUGS MEDICAL TECHNOLOGY AND DIAGNOSTIC EQUIPMENT MANY OF THESE NEW PRODUCTS ARE REDUCING COSTS BECAUSE THEY REPRESENT IMPROVEMENTS OVER CURRENT THERAPIES OTHERS REDUCE CATASTROPHIC COSTS FOR THE FEW SURVIVORS BUT ONLY AT THE LARGER NET EXPENSE OF DIAGNOSTIC TESTS FOR THE MULTITUDES MAMMOGRAMS FOR BREAST CANCER MRIS FOR BRAIN TUMORS STILL OTHERS ARE EXPENSIVE NEW MEDICINES WHERE NONE EXISTED AND PEOPLE SIMPLY DIED REFORMERS ARGUE THAT WITH THE HIGHEST TECH MEDICINE IN THE WORLD THE US SHOULD SEE MORE COSTEFFECTIVENESS FOR ALL ITS INVESTMENT IN NEW HEALTH TECHNOLOGIES NOT MORE COSTS SUCH AN OBSERVATION OVERLOOKS THE FUNDAMENTAL IRONY THAT BETTER MEDICINE BEGETS MORE MEDICINE FOR EXAMPLE IN THE PAST TWO YEARS THERE HAS BEEN AN ALARMING RISE IN THE NUMBER OF PEOPLE SUFFERING FROM SEPSIS A COMPLEX COSTLY AND OFTEN FATAL INFECTIOUS DISEASE THE NUMBER OF HOSPITAL PATIENTS DIAGNOSED WITH SEPSIS INCREASED BY NEARLY 7 IN 1992 ADDING A PROJECTED 11 BILLION IN BRAND NEW HOSPITAL CHARGES THE PROBLEM IS NOT BUNGLING HOSPITAL ADMINISTRATIONS OR PROFITEERING THE AVERAGE HOSPITAL CHARGE FOR SEPSIS WENT UP ONLY 43 LAST YEAR WHILE THE NATION'S BILL FOR THE DISEASE DUE TO THE INCREASED POPULATION CONTRACTING IT WENT UP 116 THE RAPID INCREASE IN THE NUMBER OF SEPSIS PATIENTS THE MAJORITY OF WHOM ARE ELDERLY STEMS FROM THE FACT THAT DOCTORS NOW ROUTINELY SAVE CRITICALLY ILL PATIENTS WHO ONLY A FEW SHORT YEARS AGO WERE UNTREATABLE ANOTHER GOOD EXAMPLE OF MEDICAL PROGRESS DRIVING HEALTH CARE INFLATION IS THE NEW TREATMENT FOR CYSTIC FIBROSIS PULMOZYME A PALLIATIVE NOT A CURE THIS BIOENGINEERED DRUG HAS THE POTENTIAL TO ADD AS MUCH AS 200 MILLION IN NEW COSTS TO THE NATION'S HEALTH CARE BILL MUCH OF THESE COSTS WILL BE OFFSET BY REDUCTIONS IN THE HOSPITAL CARE AND INADEQUATE DRUG THERAPIES CURRENTLY USED TO TREAT CYSTIC FIBROSIS PATIENTS AFTER THIS DEDUCTION THE BALANCE OF THE 200 MILLION WILL BE A NEW EXPENSE FOR THE SYSTEM TO BEAR AND ALL WE WILL HAVE TO SHOW FOR IT IS RELIEF TO THE 30000 CYSTIC FIBROSIS PATIENTS WHO CURRENTLY HAVE A LIFE EXPECTANCY OF 29 YEARS WHO IS WILLING TO SAY THESE PEOPLE AREN'T WORTH THE MONEY THE REFORMERS IN EFFECT ARE SAYING PRECISELY THIS WITH THEIR CAPS ON PUBLIC AND PRIVATE EXPENDITURES AT LAST YEAR'S CPI ARGUING THAT THE NATION'S HEALTH CARE BILL SHOULD BE HELD TO INFLATION IS TO ARGUE THAT SOCIETY SHOULD CURTAIL ALL NEW DRUG DEVELOPMENT FOR CURRENTLY UNTREATABLE DISEASES SUCH AN ARGUMENT IS TANTAMOUNT TO EUTHANASIA THE SAME ISSUE WILL ATTEND EVERY NEW BREAKTHROUGH CURRENTLY IN THE DRUG INDUSTRY PIPELINE MOST OF THOSE CURES WILL UNDOUBTEDLY RESULT IN NET COST INCREASES WHEN UNLEASHED AGAINST THEIR CURRENTLY UNASSAILABLE TARGETS ALZHEIMER'S AIDS NUMEROUS SYSTEMIC CANCERS ETC IF THE GOVERNMENT HAD SOUGHT TO CONTROL AGGREGATE HEALTH CARE SPENDING PRIOR TO THE PROLONGED AND EXPENSIVE INVENTION AND INTRODUCTION OF PENICILLIN IMAGINE ALL THE MONEY THE SURVIVING AMERICANS WOULD NOW BE SAVING NO DOUBT THE AIDS VACCINE WHEN IT FINALLY ARRIVES WILL ADD SIGNIFICANTLY TO HEALTH CARE INFLATION AT FIRST AND WILL PROBABLY RESULT IN A NET INCREASE THIS IS WHERE THE HEALTH CARE INFLATION FANTASY TURNS NIGHTMARISH GIVEN WHAT AN AIDS CURE AND/OR VACCINATION PROGRAM WILL PROBABLY COST IT WOULD ACTUALLY BE CHEAPER JUST TO LET THE DISEASE RUN ITS COURSE IT WOULD CERTAINLY KEEP TOTAL HEALTH CARE COSTS CLOSER TO THE CPI THIS IS THE CLINTON PLAN TAKEN TO ITS LOGICAL CONCLUSION INDEED CURTAILING THE AGGREGATE REAL REVENUE GROWTH OF AN ENTIRE INDUSTRY WILL WREAK HAVOC ON THE PROCESS OF INVESTING IN AND THUS FINDING CURES FOR DISEASES THAT CURRENTLY CLAIM LIVES AN AGING SOCIETY DEMANDING MORE AND BETTER HEALTH CARE FROM AN INDUSTRY SEARCHING FOR MORE AND BETTER CURES QUITE SIMPLY FLIES IN THE FACE OF THE HEALTH CARE INFLATION FANTASY AS IT STANDS THIS FANTASY IS FAR MORE DANGEROUS THAN THE INFLATION ITSELF IT IS THE QUINTESSENCE OF THE GOVERNMENT ATTEMPTING TO CONTROL WHAT IT CANNOT AND SHOULD NOT MR KLEINKE IS A PRINCIPAL WITH HCIA A HEALTH CARE DATA ANALYSIS AND RESEARCH FIRM HEADQUARTERED IN BALTIMORE SEE RELATED LETTERS LETTERS TO THE EDITOR STORM WARNINGS ON MEDICAL RESEARCH WSJ NOV 8 1993 9310180062 YY93 MM11 9311080119 931008 LETTERS TO THE EDITOR HEALTH CARE IN CANADA GET IN LINE IN REGARD TO YOUR SEPT 22 EDITORIAL THE HEALTH CARE DEBATE CONTRARY TO THE AMERICAN'S RIGHT TO USE HIS MONEY TO PURCHASE HEALTH CARE THE CANADIAN'S HEALTH CARE AFFORDS NO SUCH RIGHT WE HAVE NO PARALLEL SYSTEM TO THAT OF THE BRITISH OR OTHER WESTERN SOCIALIZED COUNTRIES THAT ALLOWS THE CANADIAN CITIZEN TO BUY HEALTH CARE OUR PRIME MINISTER KIM CAMPBELL MOST RECENTLY ANNOUNCED EMPHATICALLY THAT OUR SYSTEM CANNOT UNDER ANY CIRCUMSTANCE COMPROMISE ITS UNIVERSALITY THIS IN THE FACE OF QUEUING FOR CANCER TREATMENT AND OPENHEART SURGERY WHAT PLANET IS SHE ON ADMITTEDLY OUR WAITING LISTS DO INCLUDE OUR INDIGENT AND POOR BUT NOT OUR PROVINCIAL PREMIERS SUCH PROCEDURES AS PSA PROSTATIC SPECIFIC ANTIGEN SPECIFIC ALLERGY TESTS VACCINATIONS AND MORE THAN ONE COMPLETE PHYSICAL A YEAR ARE ONLY SOME OF THE MANY SERVICES THAT NEED TO BE PAID OUT OF OUR POCKETS IN FACT NOT ONLY ARE THESE SERVICES NOT COVERED BY OUR GOVERNMENT INSURANCE COMPANIES ARE PROHIBITED BY LAW TO OFFER COVERAGE FOR THESE SERVICES ALTHOUGH OUR POPULATION LIVES CLOSE TO THE US BORDER ACCESS TO THE US HEALTH SYSTEM IS DE FACTO CLOSED FEW OF US CAN AFFORD TO PAY 100000 FOR OPENHEART SURGERY OR OTHER PROCEDURES IT IS VIRTUALLY IMPOSSIBLE TO BUY INSURANCE FROM AN AMERICAN INSURANCE CARRIER FOR A CANADIAN RESIDENT ON AN ONGOING BASIS A FOUR TO FIVEMONTH STINT FOR US SNOWBIRDS IN THE US CAN COST THOUSANDS IN HEALTH INSURANCE PREMIUMS WE IN CANADA HAVE SEEN AN ACCELERATED INCREASE IN GOVERNMENT STRANGULATION OF OUR SYSTEM IN ORDER TO KEEP OUR COSTS IN LINE DESPITE THESE SEVERE CONSTRAINTS CANADA'S HEALTH COSTS NET OF ADMINISTRATIVE OVERHEAD AND LITIGATION BOTH OF WHICH ARE MUCH MORE EFFICIENT IN CANADA ARE NOT MUCH BEHIND THE US'S EXPENDITURE ALTHOUGH WE LAG WAY BEHIND ON THE BENEFIT SIDE WE HOPE THE CLINTON ADMINISTRATION LEARNS THAT BY DEFAULT GOVERNMENT CAN ALWAYS BE THE LAST RESORT TO INCREASING EFFICIENCIES SHOULD ALL ELSE FAIL CANADA HAS YET TO LEARN ONE MAJOR STEP IN DEBATING OUR NATION'S HEALTH CARE ISSUE MUST BE TO FIRST RECOGNIZE WHETHER OR NOT WE HAVE THE BEST HEALTH CARE IN THE WORLD AS YOUR EDITORIAL STATED IF IT IS THE BEST WHY DOES THE US HAVE ONE OF THE HIGHEST INFANT MORTALITY RATES AMONG INDUSTRIALIZED NATIONS WHY DO 37 MILLION PEOPLE LACK ADEQUATE HEALTH CARE THE FACT IS THAT IN OUR NATIONAL DEBATE OVER THE SOLUTION WE SHOULD NOT CONFUSE BEST WITH MOST ADVANCED OR IGNORE THE REALITY THAT IT IS THE BEST ONLY FOR THOSE WHO CAN AFFORD IT THE TASK AT HAND IS TO MAKE OUR ADVANCED KNOWLEDGE AND SERVICES AVAILABLE AND AFFORDABLE TO ALL OUR PEOPLE THEN WE WILL HAVE THE BEST HEALTH CARE IN THE WORLD FOR YEARS THE MOSTLY LIBERAL MEDIA HAVE BOMBARDED US WITH THE STATEMENT THAT 37 MILLION AMERICANS ARE WITHOUT HEALTH INSURANCE AND THUSLY ARE EXCLUDED FROM OUR HEALTH SYSTEM OR SOME SUCH EVEN OUR MORE LEVELHEADED MEDIA EG THE WALL STREET JOURNAL HAVE FREQUENTLY PRINTED THIS STATEMENT AS FACT YET AS A FAIRLY ALERT STUDENT OF CURRENT EVENTS I CAN'T RECALL EVER READING A REPORT OR READING OF A REPORT THAT GAVE THE SOURCE OF THIS COMMONLY QUOTED FACT OR PRESENTED ANY KIND OF REASONABLE BREAKDOWN OR ANALYSIS OF THE COMPOSITION OF THE 37 MILLION EXCLUDED IF IN FACT 37 MILLION OF OUR FELLOW CITIZENS ARE EXCLUDED FROM OUR MEDICAL SYSTEM UNREASONABLY THEN THIS INDEED IS A POWERFUL ARGUMENT FOR REFORM ON THE OTHER HAND IF THE 37 MILLION IS A PIPE DREAM OR IF THE OVERALL NUMBER IS FAIRLY ACCURATE BUT CONTAINS SIGNIFICANT SUBSETS THAT WOULD NOT REASONABLY BE EXPECTED TO BE INCLUDED THEN I THINK IT IS TIME THIS WAS REPORTED QUESTIONS SUCH AS THE FOLLOWING OCCUR SEE RELATED LETTERS LETTERS TO THE EDITOR JUST WHO ARE THE UNINSURED WSJ NOV 8 1993 9310080063 YY93 MM11 9311050195 931105 MARKETING & MEDIA FCC LIKELY TO EXTEND ITS FREEZE ON RATES FOR CABLE TELEVISION WASHINGTON THE ROAD TO FULL IMPLEMENTATION OF THE 1992 CABLETELEVISION REGULATION LAW MAY HAVE HIT ANOTHER DETOUR THE FEDERAL COMMUNICATIONS COMMISSION IS LIKELY TO EXTEND FOR THE SECOND TIME A FREEZE ON CABLE RATES OFFICIALS SAID RATES WERE FIRST FROZEN IN APRIL TO GIVE LOCAL REGULATORS TIME TO PREPARE TO ENFORCE THE ACT UNDER THE LAW LOCAL AUTHORITIES WILL MONITOR THE RATES OF BASIC CABLETELEVISION SERVICE AND THE FCC WILL SUPERVISE EXPANDED PROGRAMMING OTHER THAN UNREGULATED PREMIUM CHANNELS COMMISSION OFFICIALS SAY THE QUESTION NOW ISN'T WHETHER TO EXTEND THE RATE FREEZE BUT HOW LONG THE NEW EXTENSION SHOULD BE THE FREEZE PREVIOUSLY WAS DELAYED TO NOV 15 FROM ITS ORIGINAL SEPT 1 DEADLINE THE LATEST EXTENSION IS EXPECTED TO LAST UNTIL EARLY NEXT YEAR AND COULD RUN UNTIL MARCH ALTHOUGH THE MAIN PURPOSE OF THE SECOND EXTENSION WILL BE TO GIVE LOCAL AUTHORITIES ADDITIONAL TIME TO WIN FCC CERTIFICATION TO REGULATE RATES FCC OFFICIALS SAID THE DELAY ALSO WILL GIVE THE COMMISSION TIME TO WORK OUT OTHER DETAILS OF THE COMPLICATED IMPLEMENTATION PLAN IT IS BELIEVED THAT WHEN THE FREEZE FINALLY IS LIFTED CABLE COMPANIES WILL BE ABLE TO TACK ON CHARGES TO COMPENSATE FOR INFLATION AND OTHER COSTS DURING THE FREEZE SOME CONSUMERS ALREADY HAVE COMPLAINED OF RISING BILLS ESPECIALLY BY OPERATORS WHO REARRANGED PROGRAMMING TO AVOID REGULATION THE FREEZE ALLOWED COMPANIES TO RESTRUCTURE RATES AS LONG AS THERE WAS NO INCREASE IN TOTAL REVENUE A PARTIAL SURVEY COVERING 14 OF THE 25 LARGEST CABLE OPERATORS SHOWED THAT RATES HAVE FALLEN FOR 68 OF SUBSCRIBERS SINCE THE NEW CABLE LAWS WENT INTO EFFECT IN SEPTEMBER RESULTS FROM THE OTHER 11 COMPANIES WERE DELAYED BECAUSE THOSE OPERATORS REARRANGED THEIR PROGRAMMING AND SUBMITTED DATA THAT WERE MORE DIFFICULT TO ANALYZE 9311050194 931105 INTERNATIONAL REFORM GOVERNMENT OF INDIA'S RAO FACES CRITICAL TEST AS STATE ELECTIONS NEAR BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI THE COMING THREE WEEKS POSE A CRITICAL TEST FOR THE REFORMIST GOVERNMENT OF INDIAN PRIME MINISTER PV NARASIMHA RAO AS HIS CONGRESS PARTY SQUARES OFF WITH ITS CHIEF OPPOSITION IN A SERIES OF STATE ELECTIONS BETWEEN NOV 6 AND NOV 30 141 MILLION ELIGIBLE VOTERS NEARLY A THIRD OF INDIA'S TOTAL WILL HAVE A CHANCE TO GO TO THE POLLS IN SIX STATES TO ELECT 1123 LAWMAKERS TO THEIR STATE ASSEMBLIES THOUGH THE CURRENT TERM OF MR RAO'S MINORITY GOVERNMENT DOESN'T END UNTIL MID1996 A POOR CONGRESS PARTY SHOWING AT THE STATE POLLS WOULD WEAKEN HIS STANDING AND HOBBLE HIS GOVERNMENT'S SWEEPING ECONOMIC REFORM PROGRAM INDEED WIDESPREAD CONGRESS PARTY LOSSES WOULD LIKELY GIVE THE MAIN OPPOSITION GROUP THE RIGHTWING HINDUREVIVALIST BHARATIYA JANATA PARTY THE STRENGTH TO DEMAND A MIDTERM ELECTION TO THE LOK SABHA THE LOWER HOUSE OF PARLIAMENT IF THE RESULTS ARE AS PER OUR EXPECTATIONS LOK SABHA ELECTIONS WILL BECOME INEVITABLE BJP PRESIDENT LK ADVANI SAID THIS WEEK SINCE JULY 1991 THE RAO GOVERNMENT HAS WORKED TO OPEN THE INDIAN ECONOMY BY DISMANTLING BUREAUCRATIC CONTROLS UNSHACKLING PRIVATE ENTERPRISE FLOATING THE RUPEE LOWERING TARIFFS ENCOURAGING COMPETITION AND WELCOMING FOREIGN INVESTMENT THE PACE OF CHANGE HAS SLOWED HOWEVER IN THE PAST YEAR AS THE ADMINISTRATION HAS GRAPPLED WITH POLITICAL PROBLEMS AND FAILED TO BUILD CONSENSUS ON THE DIRECTION OF FURTHER LIBERALIZATION THE TROUBLE BEGAN LAST DECEMBER WHEN HINDU FANATICS DESTROYED A MOSQUE AT AYODHYA IN UTTAR PRADESH STATE UNLEASHING A WAVE OF COMMUNAL VIOLENCE WHILE THE BJP PORTRAYS THIS MONTH'S ELECTIONS AS A REFERENDUM ON THE RAO ADMINISTRATION CONGRESS PARTY SPOKESMEN ARGUE THAT IT'S THE BJP THAT FACES JUDGMENT THAT'S BECAUSE FOUR OF THE SIX STATES UTTAR PRADESH MADHYA PRADESH HIMACHAL PRADESH AND RAJASTHAN WERE RUN BY BJP GOVERNMENTS THAT MR RAO DISMISSED THIS YEAR THE PRIME MINISTER THREW OUT THE UTTAR PRADESH GOVERNMENT FOR ALLEGEDLY ABETTING THE AYODHYA MOSQUE'S DESTRUCTION AND THE OTHER THREE FOR ENCOURAGING VOLUNTEERS TO HELP A CAMPAIGN TO REPLACE THE MOSQUE WITH A TEMPLE A CAUSE LONG CHAMPIONED BY THE BJP IS NO LONGER THE BURNING ISSUE IT WAS A YEAR AGO BUT THE BJP CONTINUES TO BUILD ITS PLATFORM BY CRITICIZING THE CONGRESS PARTY'S SECULAR POLICIES WHICH IT SAYS FAVOR THE COUNTRY'S MORE THAN 100 MILLION MUSLIMS AT THE EXPENSE OF ITS NEARLY 700 MILLION HINDUS THE BJP DOESN'T STOP THERE IT ALSO BELIEVES THE RAO ADMINISTRATION IS TOO SOFT ON SEPARATISTS IN THE MUSLIMDOMINATED STATE OF KASHMIR AND THE BJP ATTACKS THE RAO GOVERNMENT'S REFORMS FOR GIVING FOREIGN INVESTORS BROAD FREEDOM WITHOUT STRENGTHENING THE ABILITY OF INDIAN BUSINESSES TO COMPETE FOR ITS PART THE CONGRESS PARTY IS FOCUSING ON THE ALLEGEDLY POOR PERFORMANCE OF THE BJP GOVERNMENTS IN THE FOUR STATES THEY GOVERNED WHILE DEFENDING ITS OWN HANDLING OF CONTENTIOUS RELIGIOUS ISSUES BUT MOST OF ALL THE PARTY IS EMPHASIZING ITS RECORD OF THE PAST TWO YEARS DURING WHICH IT REVERSED A LONG DOWNWARD SPIRAL STIMULATING ECONOMIC GROWTH WHILE BRINGING INFLATION UNDER CONTROL I'D BE SURPRISED IF THE CONGRESS PARTY DID VERY WELL BUT REPORTS THAT OUR CORRESPONDENTS ARE SENDING IN SUGGEST THAT IT IS BETTER OFF THAN MOST PEOPLE TEND TO BELIEVE SAYS TN NINAN EDITOR OF THE BUSINESS STANDARD NEWSPAPER THE CONGRESS PARTY ITSELF IS OPTIMISTIC WHATEVER HAPPENS WILL BE AN IMPROVEMENT FOR US SAYS PARTY SPOKESMAN VN GADGIL WE HIT ROCK BOTTOM LAST TIME HE ADDS REFERRING TO THE 1991 NATIONAL ELECTIONS IN WHICH THE BJP WON SIX OF THE SEVEN PARLIAMENTARY SEATS FOR THE DELHI REGION ALSO IN THAT ELECTION IN ALL OF THE FOUR STATES WHERE BJP GOVERNMENTS WERE DISMISSED THIS YEAR THE BJP SOUNDLY DEFEATED THE CONGRESS PARTY 9311050193 931105 DIVIDEND NEWS FIRST AMERICAN FINANCIAL CORP FIRST AMERICAN FINANCIAL CORP SANTA ANA CALIF THE REALESTATE FINANCIAL SERVICES CONCERN BOOSTED ITS QUARTERLY DIVIDEND 20 TO 15 CENTS A SHARE FROM 125 CENTS A SHARE PAYABLE JAN 15 TO STOCK OF RECORD DEC 24 THE ANNOUNCEMENT COMES IN THE WAKE OF THIRDQUARTER RESULTS WHICH THE COMPANY SAID INCLUDED THE HIGHEST NET INCOME IN ITS 104YEAR HISTORY NET SOARED 73 TO 196 MILLION OR 172 A SHARE FROM 113 MILLION OR 125 A SHARE 9311050192 931105 LEISURE & ARTS ON SPORTS HORSE RACING BY THE NUMBERS BY FREDERICK C KLEIN ARCADIA CALIF MANY OF US STRIVE TO MAKE A MARK ON THE WORLD BUT FEW SUCCEED ANDREW BEYER IS ONE WHO HAS TOMORROW AS THE EQUINE CONTESTANTS HEAD POSTWARD FOR THE ANNUAL BREEDERS CUP RACES AT SANTA ANITA PARK HERE MANY OF THE HUMAN CONTESTANTS IN THE STANDS WILL BE CONSULTING THEIR DAILY RACING FORMS TO SEE WHICH HORSES OUTBEYER THEIR OPPONENTS YOU KNOW YOU'VE MADE AN IMPACT WHEN YOUR NAME BECOMES A VERB SMILES THE LEAN 49YEAROLD RACING COLUMNIST FOR THE WASHINGTON POST THE PART OF BEYER THAT'S BECOME VERBALIZED ARE HIS SPEED FIGURES NUMBERS THAT ENCAPSULATE THE PERFORMANCE OF EVERY THOROUGHBRED THAT SETS HOOF UPON A NORTH AMERICAN TRACK THE PRODUCTION OF AN ACCEPTED SET OF SUCH DIGITS HAD LONG BEEN THE HOLY GRAIL OF ASSORTED RACING MAVENS AND MOCKERY OFTEN ACCOMPANIED THEIR EFFORTS THE TRIUMPH OF BEYER'S FIGURES FIRST SET OUT IN HIS 1975 BOOK PICKING WINNERS AND EMBELLISHED IN HIS LATER BOOK THE WINNING HORSEPLAYER AND HIS CURRENT ONE BEYER ON SPEED WAS CONFIRMED WHEN THE RACING FORM THE SPORT'S STATISTICAL GUIDE LAST YEAR BEGAN INCLUDING THEM IN ITS PASTPERFORMANCE LISTINGS THE ACCOMPLISHMENT WASN'T WITHOUT PAIN BEYER ALSO IS A GAMBLER OF CONSIDERABLE NOTE AND THE RACING FORM'S PUBLICATION OF THE DATA THAT ARE THE BASIS OF HIS WAGERING MEANT THAT IN A SPORT IN WHICH BETTORS VIE AGAINST ONE ANOTHER RATHER THAN AGAINST THE HOUSE HE'D BE IN EFFECT BETTING AGAINST HIMSELF THE WRITERGAMBLER PERSONA BEYER HAS FORGED BEGAN TAKING SHAPE IN ERIE PA WHERE HE GREW UP HE SAYS HE CAUGHT THE GAMBLING BUG EARLY IT'S PROBABLY GENETIC HE OPINES AND POSSESSING A THOUGHTFUL DISPOSITION GRAVITATED TOWARD THE RACETRACK WHERE MANY SUCH TYPES WIND UP HIS INTRODUCTION TO NEWSPAPER WRITING CAME ON THE CRIMSON THE STUDENT PAPER AT HARVARD UNIVERSITY WHICH HE ATTENDED BUT NO DEGREE WOULD COME OF THAT INTERLUDE HE CHEERFULLY ADMITS TO HAVING SKIPPED HIS SENIORYEAR FINALS IN ORDER TO ATEND A RUNNING OF THE BELMONT STAKES IT WAS A GAMBLER'S DECISION HE SAYS GIVEN THE AMOUNT OF STUDYING I'D DONE I FIGURED THE ODDS ON MY PASSING MY CHAUCER EXAM WERE ABOUT 100 TO 1 THE ODDS ON THE HORSE I WANTED TO BET IN THE BELMONT WERE MUCH BETTER BEYER WENT TO WORK AT THE WASHINGTON POST AS A GENERAL SPORTSWRITER LATER WAS A RACING COLUMNIST FOR THE WASHINGTON DAILY NEWS AND STAR AND RETURNED TO THE POST IN THAT CAPACITY IN 1979 ALL THE WHILE LABORING OVER HIS SPEED FIGURES THE IDEA OF PRODUCING INTELLIGIBLE NUMBERS THAT DEFINE A HORSE'S ABILITY WASN'T NEW WHEN BEYER TACKLED IT BUT ITS DIFFICULTIES WERE DAUNTING THAT'S BECAUSE AMERICAN RACING THOROUGHBREDS TYPICALLY COMPETE AT VARIOUS TRACKS OVER VARIOUS DISTANCES AGAINST VARIOUS LEVELS OF COMPETITION INDEED THE APPARENTLY INEXPLICABLE DIFFERENCES IN HORSES' CLOCKINGS FROM ONE RACE TO ANOTHER CAUSED EVEN SAVVY GAMBLERS TO DISCOUNT THEM IN THEIR BETTING CALCULATIONS AND FOCUS INSTEAD ON SUCH FACTORS AS TRACK BIAS THE ABILITIES OF TRAINERS AND JOCKEYS THE ANIMALS' RUNNING STYLES AND PROBLEMS THEY MAY HAVE ENCOUNTERED IN PAST TRIPS TIME IS ONLY IMPORTANT WHEN YOU'RE IN JAIL WAS ONCE A POPULAR PLUNGER'S MOTTO BUT AS BEYER SAW IT IT WASN'T THAT RUNNING TIMES WERE UNIMPORTANT IT WAS THAT TOOLS TO INTERPRET THEM WERE INADEQUATE FIRST USING PENCIL AND PAPER AND THEN COMPUTERS HE SET OUT TO DISCOVER WHAT REALLY WAS PAR FOR SAY 20000 CLAIMING HORSES RUNNING SIX FURLONGS ON A SUNNY DAY AT SANTA ANITA OR ALLOWANCE HORSES RUNNING A MILE IN THE RAIN AT AQUEDUCT AND WHAT WERE POOR OR EXCELLENT TIMES FOR SAME AFTER NUMEROUS ADJUSTMENTS WHICH HE'S STILL MAKING HE WAS ABLE TO ARM HIMSELF WITH A POTENT GAMBLING WEAPON WHILE MAKING THE ALMOST REVOLUTIONARY POINT THAT TIME COULD BE THE MOST IMPORTANT ASPECT OF THE SPORT HE RECALLS THAT IN THE 1970S WHEN HE HAD THEM AND OTHERS DIDN'T HIS FIGURES WERE LIKE MAGIC A CANDLE IN A LAND OF DARKNESS AND HE BENEFITED ACCORDINGLY BUT AS HE PUBLISHED HIS DISCOVERIES IN COLUMNS AND BOOKS AND OTHERS TRAVELED PARALLEL PATHS HIS EDGE DIMINISHED MEANTIME INCREASING TAXES ON RACETRACK BETTING POOLS AND THE SPREAD OF LOTTERIES AND CASINOS LURED THE CASUAL GAMBLER AWAY FROM THE SPORT LEAVING A SMALLER EVERMORESOPHISTICATED RESIDUE THE UPSHOTS HAVE BEEN SEVERAL HAVING WRITTEN THE SPEEDFIGURE BIBLE BEYER NOW IS WRITING COMMENTARY ON IT HIS NEW RELEASE FROM HOUGHTON MIFFLIN BEYER ON SPEED NEW STRATEGIES FOR RACETRACK BETTING THE SEQUEL WILL BE CALLED BEYER ON QUAALUDES' HE QUIPS FOCUSES ON HOW TO USE SPEED FIGURES IN CONJUNCTION WITH SUCH TRADITIONAL HANDICAPPING TOOLS AS EVALUATION OF PACE AND TRACK CONDITIONS AND TRIP ANALYSIS IF ANYTHING HE ADMITS KEEN OBSERVATION IS MORE IMPORTANT TODAY THAN IT USED TO BE AND IN THE PRESENT TOUGHER BETTING CLIMATE EMPHASIS HAS CHANGED FROM PLAYITSAFE STRATEGIES WITH WIN PLACE OR SHOW BETS TO SEEKING LARGE PAYOUTS THROUGH SUCH SOCALLED EXOTIC WAGERS AS EXACTAS TRIFECTAS AND PICKSIXES LONGSHOTS ALL BEYER'S OWN BIGGEST SCORES HAVE COME WITH SUCH VEHICLES HE'S CASHED TWINTRIFECTA TICKETS WORTH 134000 AND 190000 HIS BOOK SUGGESTS WAYS TO APPROACH THEM HE'LL BE IN THE PRESS BOX HERE TOMORROW ROOTING FOR HIS PICKSEVEN CHOICES TO WIN THE SEVEN 1 MILLIONORMORE EVENTS THAT MAKE UP THE MEAT OF US RACING'S BIG DAY HE SAYS THAT LURE THE LIKELY FAVORITE IN THE MILE WILL BE ONE OF HIS BETTING KEYS AND THAT SKY BEAUTY A MUCHADMIRED DISTAFF CONTENDER WON'T BE FOR MORE THAN THAT THOUGH YOU'LL HAVE TO READ BEYER'S COLUMN IN THE POST BECAUSE HE KNOWS THAT HOWEVER NICE IT IS TO PICK WINNERS A STEADY JOB COMES IN HANDY TOO 9311050191 931105 DIVIDEND NEWS USA TRUCK INC USA TRUCK INC VAN BUREN ARK DECLARED A 2FOR1 STOCK SPLIT THAT WILL BE PAID AS A 100 STOCK DIVIDEND THE DIVIDEND IS PAYABLE DEC 3 TO STOCKHOLDERS OF RECORD NOV 23 9311050190 931105 GANTOS SALES ARE DOWN GRAND RAPIDS MICH GANTOS INC SAID IT HAD OCTOBER SALES OF 182 MILLION DOWN 8 FROM A YEAR AGO GANTOS IS A WOMEN'S WEAR RETAILER 9311050189 931105 WHO'S NEWS CHICAGO STOCK EXCHANGE CHICAGO STOCK EXCHANGE CHICAGO GEORGE SLADOJE WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS REGIONAL STOCK EXCHANGE MR SLADOJE 51 YEARS OLD SUCCEEDS ALAN ZABLE WHO WILL CONTINUE WITH THE EXCHANGE AS SENIOR VICE PRESIDENT AND TREASURER 9311050188 931105 WHO'S NEWS AMERICAN RESOURCE CORP AMERICAN RESOURCE CORP GREENBRAE CALIF IAN SMITH 48 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MINING CONCERN INCREASING ITS BOARD SIZE TO FIVE MEMBERS MR SMITH IS PRESIDENT OF MINERAL RESOURCES DEVELOPMENT INC A SAN MATEO CALIF MININGCONSULTANT CONCERN 9311050187 931105 WHO'S NEWS HARSCO CORP HARSCO CORP CAMP HILL PA BRIAN H TUCKER 44 YEARS OLD WAS NAMED VICE PRESIDENT AND DEPUTY GENERAL COUNSEL TO THIS INDUSTRIAL MANUFACTURING AND SERVICE COMPANY THE POST IS NEWLY CREATED 9311050186 931105 WHO'S NEWS HUMANA INC HUMANA INC LOUISVILLE KY IRWIN LERNER 62 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MANAGEDCARE HEALTH PLAN PROVIDER MR LERNER IS A FORMER CHAIRMAN OF HOFFMANNLA ROCHE INC HIS ELECTION BRINGS THE NUMBER OF BOARD SEATS TO EIGHT 9311050185 931105 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES RONALD R BEEGLE A CONSULTANT AND FORMERLY A PLANNING OFFICIAL AT SAKS FIFTH AVENUE WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OF STRATEGIC PLANNING FOR THIS DEPARTMENT STORE CONCERN 9311050184 931105 WHO'S NEWS RJR NABISCO HOLDINGS CORP RJR NABISCO HOLDINGS CORP NEW YORK CATHERINE J MOFFATT 33 YEARS OLD WAS NAMED VICE PRESIDENT MARKETING AT THE NABISCO INTERNATIONAL UNIT OF RJR NABISCO INC A CONSUMER FOODS PRODUCTS CONCERN MS MOFFATT WAS PREVIOUSLY DIRECTOR MARKETING SERVICES 9311050183 931105 PIER 1 IMPORT SALES RISE 122 FORT WORTH TEXAS PIER 1 IMPORTS INC SAID SALES FOR THE FOUR WEEKS ENDED OCT 30 ROSE 122 TO 476 MILLION FROM 424 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 74 YEARTODATE SALES ROSE 8 TO 4478 MILLION FROM 4145 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 47 9311050182 931105 HILO'S OCTOBER SALES ROSE 91 HOUSTON HILO AUTOMOTIVE INC SAID RETAIL SALES FOR OCTOBER ROSE 91 TO 179 MILLION FROM 164 MILLION A YEAR EARLIER IN STORES OPEN MORE THAN ONE YEAR SALES DECLINED 08 FOR THE YEAR TO DATE SALES ROSE 93 TO 1734 MILLION FROM 1586 MILLION SAME0STORE SALES ROSE 04 9311050181 931105 NEW SALES TAX CITED AS VENEZUELA INFLATION HITS FOURYEAR HIGH SPECIAL TO THE WALL STREET JOURNAL CARACAS VENEZUELA A NEW SALES TAX HELPED PUSH INFLATION TO A FOURYEAR HIGH OF 5 IN OCTOBER BRINGING THE ACCUMULATED RATE FOR THE YEAR TO 359 THE CENTRAL BANK REPORTED THE ACCUMULATED INCREASE IN THE CONSUMER PRICE INDEX FOR THE CARACAS METROPOLITAN AREA IS WELL ABOVE THE 257 REGISTERED AT THE SAME TIME LAST YEAR THE BANK SAID THE INFLATION RATE FOR CARACAS VENEZUELA'S LARGEST CITY IS USED AS THE NATIONAL RATE OCTOBER'S RATE WAS THE HIGHEST SINCE MAY 1989 WHEN 64 WAS REGISTERED SEPTEMBER'S INFLATION RATE WAS 33 RESPONSIBLE FOR 19 OF OCTOBER'S RATE WAS A 10 VALUEADDED TAX THAT TOOK EFFECT THE FIRST OF THE MONTH THE BANK REPORTED THE TAX IS APPLIED ON SALES THROUGH THE WHOLESALE LEVEL BUT ONLY THE FINAL CUSTOMER PAYS THE EXTRA COST CONFUSION AMONG MERCHANTS ABOUT HOW THE TAX WORKS AND PRICE SPECULATION ALSO BOOSTED PRICES THE GOVERNMENT SAYS THE TAX VENEZUELA'S FIRSTEVER SALES TAX IS NEEDED TO HELP SHED THE COUNTRY'S DEPENDENCE ON OIL REVENUES AND NARROW A DEFICIT PROJECTED TO REACH 25 OF THE BUDGET THIS YEAR PRIVATE ECONOMISTS PROJECTED INFLATION WILL EXCEED 40 THIS YEAR LAST YEAR'S ACCUMULATED RATE WAS 314 SEPARATELY THE CENTRAL BANK REPORTED FOREIGN CURRENCY RESERVES FELL 77 MILLION IN OCTOBER FROM A MONTH EARLIER BRINGING THE ACCUMULATED LOSS FOR THE YEAR TO 389 MILLION RESERVES WERE 12612 BILLION AT THE END OF OCTOBER COVERING 133 MONTHS OF IMPORTS THE BANK SAID 9311050180 931105 WHO'S NEWS GRANCARE INC GRANCARE INC CULVER CITY CALIF M SCOTT ATHANS 47 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER A NEWLY CREATED POSITION WITH THIS LONGTERM HEALTHCARE FACILITIES OPERATOR MR ATHANS WAS CHIEF OPERATING OFFICER OF HEALTHFIELD INC A PRIVATE HOMEHEALTHCARE BUSINESS BASED IN ATLANTA 9311050179 931105 CREDIT RATINGS BANC ONE CORP COLUMBUS OHIO MOODY'S INVESTORS SERVICE SAID IT RAISED THE RATINGS ON 18 BILLION OF DEBT OF THIS BANK HOLDING COMPANY AND ITS SUBSIDIARIES CITING A STRONG REGIONAL PRESENCE AND HIGH ASSET QUALITY RATINGS UPGRADED INCLUDE THE COMPANY'S SENIOR DEBT TO AA3 FROM SINGLEA1 SUBORDINATED DEBT TO SINGLEA1 FROM SINGLEA2 SHELF REGISTRATION OF SENIOR DEBT TO PAA3 FROM PSINGLEA1 SHELF REGISTRATION OF SUBORDINATED DEBT TO PSINGLEA1 FROM PSINGLEA2 AND PREFERRED STOCK TO AA3 FROM A1 MOODY'S ALSO RAISED THE RATINGS FOR LONGTERM DEPOSITS AT BANC ONE'S RATED BANKS TO AA2 FROM AA3 MOODY'S CITED BANC ONE'S STRONG POSITION IN A NUMBER OF REGIONAL MARKETS CONSISTENTLY STRONG EARNINGS HIGH ASSET QUALITY SUPERIOR CAPITALIZATION AND SUCCESSFUL ACQUISITION PROGRAM THAT HAS LED TO INCREASED DIVERSIFICATION OF THE COMPANY'S CREDIT PORTFOLIO AND REVENUE BASE MIDLANTIC CORP MOODY'S INVESTORS SERVICE INC SAID IT MAY RAISE ITS RATING ON LONGTERM DEBT OF MIDLANTIC AND ITS BANKING UNITS AS THE COMPANY CONTINUES TO STRENGTHEN ITS RETAIL AND COMMERCIAL BUSINESS WHILE IMPROVING ASSET QUALITY AND CAPITAL POSITIONS ABOUT 440 MILLION OF LONGTERM DEBT WOULD BE AFFECTED THE EDISON NJ BANKING COMPANY'S SENIOR DEBT IS RATED BA2 WELLS FARGO & CO SAN FRANCISCO MOODY'S INVESTORS SERVICE INC RAISED THE RATINGS ON THE LONGTERM DEBT OF THIS SAN FRANCISCOBASED BANKING CONCERN TO A3 FROM BAA1 SENIOR AND TO BAA1 FROM BAA2 SUBORDINATED THE RATING OF THE PREFERRED STOCK WAS RAISED TO A3' FROM BAA1' THE RATING FOR WELLS FARGO BANK'S LONGTERM DEPOSITS WAS UPGRADED TO A1 FROM A2 MOODY'S SAID THE UPGRADES REFLECT ITS BELIEF THAT THE BANK WILL FURTHER REDUCE ITS PORTFOLIO OF PROBLEM LOANS 9311050178 931105 TECHNOLOGY & HEALTH GRACE CEDARSSINAI TO JOINTLY DEVELOP BRIDGE' FOR PATIENTS WAITING FOR LIVERS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WR GRACE & CO AND CEDARSSINAI MEDICAL CENTER OF LOS ANGELES PLAN TO COMBINE THEIR SEPARATE EFFORTS TO DEVELOP A DEVICE THAT CAN BUY TIME FOR PATIENTS WITH CRITICAL LIVER DISEASE UNTIL A DONOR ORGAN BECOMES AVAILABLE FOR TRANSPLANT THE COLLABORATION WILL BE FORMALLY ANNOUNCED TODAY AT THE ANNUAL MEETING OF THE AMERICAN ASSOCIATION FOR THE STUDY OF LIVER DISEASES BEING HELD HERE THE BOCA RATON FLA SPECIALTYCHEMICAL AND HEALTHCARE CONCERN BEGAN DEVELOPING ITS VERSION OF THE LIVERASSIST DEVICE IN 1986 IT IS JOINING WITH A CEDARSSINAI TEAM LED BY ACHILLES A DEMETRIOU WHO IS THE BESTKNOWN RESEARCHER IN THE FIELD DR DEMETRIOU WHO BEGAN DEVELOPMENT IN 1982 LEFT VANDERBILT UNIVERSITY WITH HIS RESEARCH TEAM TWO YEARS AGO TO JOIN CEDARSSINAI THE TWO NEW PARTNERS BRING VERY DIFFERENT THINGS TO THE TABLE A GRACE OFFICIAL SAID AND THE COMPANY EXPECTS THE COLLABORATION TO CONSIDERABLY SHORTEN THE PATH TO MARKET APPROVAL FOR THE LIVERASSIST DEVICE TO DATE TESTING OF GRACE'S DEVICE HAS BEEN RESTRICTED TO ANIMALS THE CEDARSSINAI RESEARCHERS HOWEVER FOLLOWING COMPASSIONATE USE EXEMPTIONS THAT ALLOW EXPERIMENTAL TREATMENTS IN CASES WHERE PATIENTS WOULD OTHERWISE DIE HAVE IN THE PAST YEAR EMPLOYED THEIR VERSION OF THE STOPGAP DEVICE TO SUCCESSFULLY BRIDGE' SIX HUMAN PATIENTS ALL SIX SOME OF WHOM HAD GONE INTO A COMA BY THE TIME THE DEVICE WAS PUT TO USE LIVED UNTIL A LIVER BECAME AVAILABLE AND CONTINUE TO SURVIVE THE DEVICE ISN'T AT ALL A LONGTERM SOLUTION BUT IS MEANT TO GET THE PATIENT PAST THIS CRITICAL PERIOD UNTIL A LIVER BECOMES AVAILABLE STRESSED A CEDARSSINAI SPOKESMAN WHILE ESTIMATES VARY HUNDREDS OR PERHAPS THOUSANDS OF PEOPLE DIE EACH YEAR IN THE US WHILE AWAITING A DONOR LIVER THE WAITING TIME FOR ORGANS IS INCREASING BECAUSE SURGEONS' TRANSPLANT CAPABILITY HAS INCREASED MORE RAPIDLY THAN THE NUMBER OF ORGAN DONORS BOTH THE GRACE AND CEDARSSINAI DEVICES ARE PLASTIC CYLINDERS FILLED WITH A MEMBRANE THAT HOLDS CELLS FROM PIG LIVERS THE AIM OF THE BIOFILTRATION DEVICE IS TO USE THE ANIMAL CELLS TO TEMPORARILY DUPLICATE THE LIVER'S FUNCTION OF REMOVING DANGEROUS TOXINS THAT BUILD UP IN THE BLOOD CURRENTLY THE ONLY WAY TO ALLEVIATE SEVERE LIVER FAILURE IS A TRANSPLANT SOME MECHANICAL FILTERING SYSTEMS USING CHARCOAL HAVE BEEN TESTED WITH LARGELY DISAPPOINTING RESULTS THERE ARE DIFFERENCES BETWEEN THE TWO TEAMS' DEVICES AND GRACE SEEMS PREPARED TO DEFER TO ITS PARTNER ON TECHNICAL MATTERS CEDARSSINAI FOR EXAMPLE DIVIDES THE PATIENT'S BLOOD INTO PLASMA AND CELLS AND TREATS ONLY THE PLASMA BEFORE REMIXING THE LIQUID WITH THE BLOOD CELLS GRACE'S DEVICE IS DESIGNED TO TREAT WHOLE BLOOD A GRACE OFFICIAL SAID THAT WE THINK THE SEPARATION OFFERS SOME SUBSTANTIAL ADVANTAGES PRIMARILY BY AVOIDING CLOTTING PROBLEMS IN THE MEMBRANE DR DEMETRIOU IN AN INTERVIEW ALSO NOTED THAT THE SEPARATION TECHNIQUE WHILE MORE CUMBERSOME IS SAFER BECAUSE IT ELIMINATES THE NEED TO USE AN ANTICOAGULANT CEDARSSINAI RESEARCHERS HAVE BEEN FOCUSING ON CLINICAL APPLICATIONS OF DR DEMETRIOU'S WORK GRACE SAID WHILE THE COMPANY'S EFFORTS HAVE EMPHASIZED ON THE ENGINEERING ASPECTS OF THE DEVICE GRACE WHICH OWNS A MAKER OF HOLLOWFIBER MEMBRANES USED IN MEDICAL AND BIOTECH APPLICATIONS SAID ITS CONTRIBUTION WOULD CENTER ON ITS MANUFACTURING EXPERTISE AS WELL AS CERTAIN TECHNIQUES FOR ISOLATING THE PIG CELLS USED TO FILTER THE BLOOD THE TWO TEAMS WILL NOW JOIN FORCES AND PLAN TO SEEK FOOD AND DRUG ADMINISTRATION CLEARANCE TO ENTER CLINICAL TRIALS EARLY NEXT YEAR GRACE WILL HANDLE THE COMMERCIALIZATION OF THE DEVICE SAID A SPOKESMAN OTHER RESEARCHERS ARE CONDUCTING RESEARCH ON LIVERASSIST DEVICES AMONG THEM IS HEPATIX INC A CLOSELY HELD COMPANY FORMED TO COMMERCIALIZE AN LAD DEVELOPED BY RESEARCHERS AT BAYLOR UNIVERSITY HOUSTON 9311050177 931105 LADBROKE ANNOUNCES MANAGEMENT SHIFTS AT TEXAS HOMECARE SPECIAL TO THE WALL STREET JOURNAL LONDON LADBROKE GROUP PLC OF BRITAIN ANNOUNCED A NUMBER OF MANAGEMENT CHANGES AT ITS TEXAS HOMECARE UNIT THE CHANGES ARE A RESULT OF A REVIEW BY THE UNIT'S NEW CHIEF EXECUTIVE JOHN COLEMAN WHO ASSUMED OFFICE IN SEPTEMBER LIKE OTHER UK DOITYOURSELF STORES TEXAS HOMECARE'S PROFITS HAVE BEEN HURT BY THE PROPERTYDRIVEN RECESSION IN THE FIRST HALF OF 1993 THE HOMEIMPROVEMENT CHAIN SAW PROFIT PLUNGE 41 TO 157 MILLION 233 MILLION STEPHEN HIBBERT IS NOW OPERATIONS DIRECTOR HE WAS RETAIL OPERATIONS DIRECTOR OF DOROTHY PERKINS A WOMEN'S CLOTHING RETAILER OWNED BY THE BURTON GROUP BEFORE BEING APPOINTED CEO OF TEXAS HOMECARE MR COLEMAN WAS MANAGING DIRECTOR AT DOROTHY PERKINS ANDREW KINNELL FILLS A NEWLY CREATED POSITION OF DIRECTOR OF SYSTEMS AND LOGISTICS WHILE NIGEL FRANKS BECOMES PROPERTY DIRECTOR A FINANCE DIRECTOR HASN'T BEEN APPOINTED LADBROKE A LEISURE AND RETAILING COMPANY ALSO SAID THE UNIT'S MARKETING AND BUYING DEPARTMENTS ARE BEING REORGANIZED WITH THE APPOINTMENT OF NEW DIRECTORS REPORTING DIRECTLY TO MR COLEMAN CLIVE ROYLANCE MARKETING DIRECTOR JIM DEACON THE MAJOR STORES OPERATIONS DIRECTOR AND GEOFF CLAXTON THE BUYING DIRECTOR ARE ALL LEAVING THE COMPANY LADBROKE SAID THE THREE COULDN'T BE REACHED IMMEDIATELY FOR COMMENT SUCCESSORS FOR THESE POSTS ARE BEING SOUGHT A SPOKESMAN SAID MR KINNELL AND MR FRANKS WHO ASSUME NEW POSITIONS ALREADY WERE EMPLOYED AT THE COMPANY 9311050176 931105 US SHOE CORP SALES RISE CINCINNATI OHIO US SHOE CORP SAID SAMESTORE RETAIL SALES OF ITS WOMEN'SAPPAREL OPTICAL AND FOOTWEAR OPERATIONS INCREASED 92 FOR THE FOUR WEEKS ENDED OCT 30 TOTAL RETAIL SALES WERE UP 59 TO 173 MILLION FOR THE FOUR WEEKS FROM A YEAREARLIER 1634 MILLION FOR THE NINE MONTHS ENDED OCT 30 SAMESTORE RETAIL SALES INCREASED 04 TOTAL SALES REMAINED THE SAME AT ABOUT 16 BILLION 9311050175 931105 AFFILIATE OF TOYOTA REPORTS PRETAX LOSS FOR FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S TOYODA MACHINE WORKS LTD A TOYOTA MOTOR CORP AFFILIATE THAT MAKES MACHINE TOOLS REPORTED THAT IT HAD A PRETAX LOSS OF 297 BILLION YEN 276 MILLION DURING THE FISCAL FIRST HALF ENDED SEPT 30 COMPARED WITH A 127 BILLION YEN PRETAX PROFIT A YEAR EARLIER SALES FELL 21 TO 635 BILLION YEN FROM 8068 BILLION YEN A COMPANY OFFICIAL ATTRIBUTED BOTH THE STEEP FALL IN SALES AND THE LOSS OF CORPORATE PROFITABILITY TO CUTBACKS IN CAPITAL INVESTMENT IN PLANT AND EQUIPMENT BY AUTO MAKERS AND ELECTRONICS MAKERS ITS MAIN CUSTOMERS DURING THE FIRST HALF MACHINETOOL SALES WERE OFF 57 TO 1071 BILLION YEN FROM 2514 BILLION YEN A YEAR BACK SALES OF AUTOMOBILE PARTS THE LARGEST ACCOUNTING CATEGORY WERE OFF 18 AT 4905 BILLION YEN COMPARED WITH 4993 BILLION YEN WHILE EXPORTS WERE ONLY 44 OF REVENUE THE YEN'S RAPID APPRECIATION ALONE SHAVED 300 MILLION YEN FROM THE SALES TOTAL THE OFFICIAL SAID THE OFFICIAL SAID THE COMPANY HAS UNDERTAKEN STREAMLINING MEASURES SUCH AS CUTTING OVERTIME AND OTHER OPERATING EXPENSES AIMED AT PULLING EARNINGS BACK INTO THE BLACK IN THE FISCAL YEAR TO END MARCH 31 1995 THE COMPANY LEFT ITS FORECAST FOR THE CURRENT FULL FISCAL YEAR UNCHANGED AFTER REVISING IT DOWNWARD ON OCT 10 9311050174 931105 INTERNATIONAL WORLD ECONOMY ASIAPACIFIC ECONOMIC SUMMIT SETS OUT TO DEFINE GOALS PUTS EUROPE ON NOTICE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN LEADERS FROM 15 PACIFIC ECONOMIES GATHER SOON IN SEATTLE THEY WON'T ACCOMPLISH MUCH BY NORMAL SUMMIT STANDARDS YET THEIR MEETING COULD MEAN ALMOST EVERYTHING TO THEIR COLLECTIVE FUTURE AND QUITE A LOT FOR FARAWAY EUROPE TOO THE GATHERING IS THE FOURTH ANNUAL MINISTERS MEETING BUT FIRSTEVER SUMMIT OF THE ASIAPACIFIC ECONOMIC COOPERATION FORUM IT'S A DYNAMIC GROUP MEMBERS HAVE A COMBINED GROSS PRODUCT OF 14 TRILLION CONDUCT 35 OF THE WORLD'S TRADE AND HAVE ITS HIGHEST GROWTH RATES APEC IS ESPECIALLY IMPORTANT TO THE HOST ACCOUNTING FOR 54 OF US FOREIGN COMMERCE COMPARED TO ONLY 24 WITH EUROPE AND THE FORMER SOVIET UNION YET IT'S A STRANGE MIX TOSS TOGETHER THE LENINIST PRESIDENT OF CHINA THE HIGHLIVING SULTAN OF BRUNEI THE REFORMIST PRIME MINISTER OF JAPAN PLUS BILL CLINTON AND OTHERS LEAVING OUT THE PEPPERY PRIME MINISTER OF MALAYSIA WHO WILL SULK AT HOME AND THE RESULT IS AN ODD MEAL JUST WHAT IT WILL NURTURE ISN'T ENTIRELY CLEAR BUT THIS GATHERING HAS SIGNIFICANCE FAR BEYOND WHATEVER TEDIOUS DOCUMENTS LEADERS PRODUCE AT THE MEETING IN TWO WEEKS THEIR'S WILL BE THE MOST TANGIBLE EFFORT YET TO GIVE SUBSTANCE TO A COMING PACIFIC CENTURY ONE SUPPOSEDLY DESTINED TO SEE NATIONS OF THE PACIFIC SUPPLANT THOSE OF THE ATLANTIC AS PREDOMINANT PLAYERS IN WORLD ECONOMICS AND POLITICS THE GATHERING WILL NUDGE MEMBERS TOWARD UNITY FOR IT LAUNCHES THE FIRST TOPLEVEL EFFORT TO DEFINE COMMON GOALS AND WAYS TO ACHIEVE THEM MANY FEEL THE SUMMIT WILL HAVE THE EFFECT OF PUTTING EUROPE ON NOTICE THE IMMEDIATE GOALS ARE MODEST TOO MANY ASIAN NATIONS REMAIN SUSPICIOUS OF EACH OTHER'S TRUE INTENTIONS AND OF THE US AS WELL APEC ACTS ONLY BY BLAND CONSENSUS ON SAFE SUBJECTS APEC WILL ENDORSE A NONBINDING CODE OF CONDUCT TO PROMOTE BUSINESS EXPANSION ACROSS THE REGION INCLUDED FOR EXAMPLE IS A PLAN TO IMPROVE CUSTOMS PROCEDURES BY DISCREETLY DISCOURAGING TRADITIONAL PRACTICES READ BRIBES THE MEETING ALSO WILL APPROVE A BROADER POLICY FRAMEWORK FOR EXPANDING TRADE AND INVESTMENT WHILE URGING QUICK CONCLUSION OF THE URUGUAY ROUND OF TRADE TALKS BUT UNDERLYING THIS MODESTY ARE TWO BROADER THEMES OF GLOBAL SIGNIFICANCE FIRST THERE'S GROWING ASIAN AWARENESS OF ITSELF AS A DYNAMIC REGION WITH SHARED INTERESTS AND NOT JUST A DISPARATE COLLECTION OF MOSTLY LOWCOST EXPORTERS MORE AND MORE OF ITS TRADE STAYS WITHIN APEC A FULL 60 BY ONE MEASURE THIS INCREASINGLY INCLUDES COMMERCE AMONG THE DEVELOPING STATES OF SOUTHEAST ASIA NOT JUST HUGE SHIPMENTS TO AND FROM THE WEALTHY US JAPAN AND CANADA ASIANS ALSO REALIZE THEY NEED SECURITY AND STABILITY SOME ASIAN STATES WORRY MOST ABOUT OTHER ASIANS NOTABLY STRONG CHINA AND JAPAN BUT ALL REALIZE THEIR FIRST PRIORITY ECONOMIC GROWTH WOULDN'T SURVIVE ANY CLASH OF ARMS THOUGH IT'S AN ECONOMIC FORUM APEC INDIRECTLY PROMOTES CALM BY BRINGING TOGETHER THESE DIVERSE LEADERS IT ALSO PROVIDES A HOOK FOR KEEPING THE US ENGAGED AS A GUARANTOR OF PEACE THOUGH WORRY ABOUT AMERICAN DOMINANCE WILL KEEP MALAYSIA'S SUSPICIOUS PRIME MINISTER AWAY THUS APEC'S FIRST AGENDA ITEM CONCERNS GIVING THE ALLIANCE MORE SUBSTANCE AS SUGGESTED BY 11 PRIVATE BUT OFFICIALLY CHOSEN CITIZENS WITH THE WONDERFUL TITLE OF EMINENT PERSONS THE US CHOICE AND GROUP CHAIRMAN ECONOMIST FRED BERGSTEN SAYS THEIR SPECIAL REPORT SUGGESTS MAKING APEC A FREE TRADE ZONE OF GREATER ECONOMIC COOPERATION EVENTUALLY PERHAPS WE CAN GET THE MINISTERS TO AGREE IN TWO OR THREE YEARS TO SET A TIMETABLE FOR SPECIFIC LIBERALIZATION MEASURES MR BERGSTEN SAYS SECOND THE SUMMIT ILLUSTRATES A PACIFIC TILT IN US POLICY SOON TO APPEAR IN PLANNED SPEECHES AND TRAVEL BY CLINTON ADMINISTRATION OFFICIALS IT'S NOT QUITE ANTIEUROPE THOSE FUNDAMENTAL TIES REMAIN STRONG BUT THERE IS EXASPERATION WITH EUROPE OVER TRADE TALKS BOSNIA AND OTHER ISSUES AND A NEW WILLINGNESS TO DISPLAY IT FOR THE RECORD US OFFICIALS CALL THIS TILT RESTORING THE BALANCE BUT IT COULD BE MUCH MORE IF GLOBAL TRADE TALKS FAIL DUE TO EUROPEAN ESPECIALLY FRENCH INTRANSIGENCE THAT COULD BRING AN AMERICAN BACKLASH AND INTENSIFIED EFFORTS TO PROMOTE APEC AS AN ALTERNATIVE TO A COLLAPSING GLOBAL TRADE SYSTEM NO ONE WANTS THAT TO HAPPEN MEMBERS WANT APEC AS AN ESSENTIAL PART OF THE WORLD ECONOMY NOT A BLOC APART BUT WITHOUT A URUGUAY ROUND SUCCESS APEC MIGHT FEEL FORCED TO PROMOTE ITSELF IN SELFDEFENSE SEEKING RELIEF FOR ASIA AND NORTH AMERICA BUT NOT FOR EUROPE 9311050173 931105 GERMANY'S PRIVATIZATION AGENCY SEES EC APPROVAL OF LATEST EKOSTAHL PLAN BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS GERMANY'S TREUHANDANSTALT SAID IT EXPECTS TO WIN EUROPEAN COMMUNITY APPROVAL FOR ITS LATEST PLAN TO PRIVATIZE EKO STAHL AG BUT THE PLAN THREATENS TO SPARK A POLITICAL CRISIS AND ENDANGER AN ECWIDE STEEL INDUSTRY RESTRUCTURING PACKAGE THE TREUHAND GERMANY'S PRIVATIZATION AGENCY SAID ON TUESDAY THAT IT PLANS TO SELL 60 OF EKO STAHL TO RIVA PRODOTTI SIDERURGICI SPA OF ITALY AND RETAIN A 40 STAKE IN THE FORMER EAST GERMAN STEEL PLANT TOGETHER THE ITALIAN AND GERMAN ENTITIES WOULD INVEST 12 BILLION MARKS 7084 MILLION TO MODERNIZE EKO STAHL AND TURN THE SMOKEBELCHING FACTORY INTO A MODERN INTEGRATED STEELWORKS RIVA WOULD PAY THE SYMBOLIC SUM OF ONE MARK FOR BUYING MAJORITY OWNERSHIP OF EKO STAHL ONCE THE PRIDE OF EAST GERMAN HEAVY INDUSTRY BUT STEELINDUSTRY OFFICIALS IN SEVERAL EUROPEAN COUNTRIES WERE HIGHLY CRITICAL OF THE NEW TREUHANDRIVA PLAN WHICH THEY SAID WOULD ADD TO WESTERN EUROPE'S ALREADY BLOATED STEELPRODUCTION CAPACITY AT A TIME THE INDUSTRY AND THE EC ARE TRYING TO DO EXACTLY THE OPPOSITE BY CUTTING BACK EXCESS CAPACITY WESTERN EUROPE'S STEEL INDUSTRY IS DEEP IN CRISIS WITH MANY MAJOR STEELMAKERS MASSIVELY LOSING MONEY BECAUSE OF WEAK DEMAND AND DEPRESSED PRICES FOR THEIR PRODUCTS GERMANY'S PRIVATESECTOR STEEL INDUSTRY IS INCREASINGLY AT ODDS WITH THE COUNTRY'S INDUSTRY MINISTER GUENTHER REXRODT AND HIS EFFORTS TO BAIL OUT EKO STAHL THE LATEST EKO STAHL PLAN WAS PRESENTED BY TREUHAND PRESIDENT BIRGIT BREUEL DURING AN UNPUBLICIZED VISIT LAST WEEK TO KAREL VAN MIERT AND MARTIN BANGEMANN THE TWO EC COMMISSIONERS IN CHARGE OF PUTTING TOGETHER A RESTRUCTURING PLAN FOR THE EC'S BELEAGUERED STEEL INDUSTRY THE TREUHAND NEEDS THE EC COMMISSION'S APPROVAL UNDER THE COMMUNITY'S STATEAID REGIME BECAUSE THE GERMAN STATE WOULD PICK UP 40 OF EKO STAHL'S 12 BILLIONMARK MODERNIZATION TAB OR 480 MILLION MARKS LITTLE NEWS HAS LEAKED OUT OF THE TREUHANDEC COMMISSION MEETING BUT THE OUTCOME APPEARS TO HAVE BEEN POSITIVE FOR EKO STAHL THE TREUHAND BOARD IS VERY OPTIMISTIC THAT THE RIVA DEAL WILL GO THROUGH IN BRUSSELS THE TREUHAND SPOKESWOMAN SAID EC COMMISSION OFFICIALS WERE UNAVAILABLE FOR COMMENT THE PROPOSED INVESTMENT WOULD BE USED TO BUILD A FACILITY TO PRODUCE HOTROLLED COILS AT EKO STAHL THE MILL WOULD FILL A KEY GAP ALLOWING EKO STAHL TO TRANSFORM IRON ORE INTO COATED AND NONCOATED STEEL SHEET IN A CONTINUOUS PROCESS SAID HANSHEINRICH MUUS WHO REPRESENTS ITALY'S FAMILYOWNED RIVA STEEL GROUP IN GERMANY IN APRIL THE COMMISSION VETOED THE TREUHAND'S PLAN TO PROVIDE 997 MILLION EUROPEAN CURRENCY UNITS 113 BILLION IN SUBSIDIES TO EKO STAHL TO HELP IT BUILD A STATEOFTHEART MINIMILL BUT THE NEW TREUHAND PLAN HAS APPARENTLY BEEN MORE FAVORABLY RECEIVED THE EC COMMISSION HAS BEEN STRUGGLING IN RECENT MONTHS TO WIN AGREEMENT FOR A RESTRUCTURING PLAN THAT AIMS TO CUT BACK 30 MILLION TONS IN EC RAWSTEEL PRODUCTION CAPACITY AND SLASH TENS OF THOUSANDS OF JOBS THE EC AND ITS MEMBER STATES HAVE PLEDGED 27 BILLION ECUS TO HELP PAY FOR THE RESTRUCTURING 9311050172 931105 CAMPBELL SOUP HOPES JOINT VENTURE IN JAPAN WILL HELP STIR UP TEPID SALES BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER 25 YEARS IN THE JAPANESE MARKET CAMPBELL SOUP CO CAME TO THE REALIZATION THAT IT NEEDS ANOTHER COOK TO HELP SELL ITS BROTH THE JAPANESE UNIT OF THE US SOUP MAKER THIS WEEK SAID IT WAS FORMING A JOINT VENTURE WITH NAKANO VINEGAR CO A JAPANESE FOOD CONCERN WITH THE HOPE OF IMPROVING SALES CAMPBELL'S MOVE GOES AGAINST THE TREND AMONG DOZENS OF FOREIGN COMPANIES WHICH USUALLY START OUT IN JAPAN VIA JOINT VENTURES BUT THEN END THE PARTNERSHIPS ONCE THEY FEEL CONFIDENT ENOUGH TO SET UP THEIR OWN SALES NETWORKS CAMPBELL VENTURED INTO JAPAN ON ITS OWN BELIEVING THAT WITH A BIT OF MARKETING EFFORT ITS FAMOUS BRAND NAME WOULD FARE WELL AMONG JAPANESE CONSUMERS NOW THOUGH AFTER ALL THIS TIME THE CAMDEN NJ SOUP MAKER ISN'T SHY ABOUT ADMITTING ITS LONGTERM MARKETING FAILURE ALTHOUGH WE'VE BEEN IN THE MARKET FOR YEARS AND YEARS WE STILL FACED A TOUGH SITUATION SAYS SOJI NUMANO BUSINESS DIRECTOR OF CAMPBELL'S JAPANESE UNIT WE COULDN'T DO ANYTHING ABOUT IT THE WAY WE WERE CAMPBELL WILL HOLD A 51 SHARE OF THE NEW TOKYO VENTURE CALLED CAMPBELL NAKANO INC WHILE NAKANO HAS 49 THE NEW COMPANY WHICH PLANS TO IMPORT CAMPBELL'S SOUP FROM THE US WILL START SALES IN MARCH THE ALLIANCE WITH NAKANO GIVES CAMPBELL A NEW OPPORTUNITY TO EXPAND ITS MODEST 3 MARKET SHARE IN JAPAN'S WESTERN SOUP MARKET WHICH LAST YEAR TOTALED 540 MILLION IN SALES IT GIVES THE US MAKER ACCESS TO A NATIONWIDE SALES NETWORK WITH 200 SALESMEN MARKETING CAMPBELL'S CONCENTRATED CANNED SOUPS COSTING FROM 220 YEN TO 250 YEN 204 AND 232 FOR A CAN THE VENTURE WILL ALSO MARKET NAKANO'S INSTANT CHINESE SOUP MIXES IN TOTAL THE NEW COMPANY PLANS TO POST SALES OF 22 BILLION YEN IN THE YEAR ENDING JULY 31 1995 AND DOUBLE THAT FIGURE IN FIVE YEARS NAKANO WHICH ALREADY MARKETS CAMPBELL'S PREGO BRAND SPAGHETTI SAUCE SAYS THE NEW VENTURE WILL HELP IT IN THE BOOMING INSTANTSOUP INDUSTRY WHERE A HOST OF NEW ENTRANTS ARE STAGING SPLASHY TELEVISION COMMERCIALS FEATURING POPULAR ACTRESSES NAKANO WILL ALSO GAIN THE OPPORTUNITY TO LEARN FROM THE GIANT US FOOD COMPANY A COMPANY SPOKESMAN SAYS CAMPBELL CERTAINLY MADE AN EFFORT TO CRACK THE JAPANESE MARKET ON ITS OWN AFTER IMPORTING THE SOUP IT REDECORATED THE CAN WITH JAPANESE WRITING AND THE COMPANY CAME UP WITH LOCAL FLAVORS TO CATER TO JAPANESE CONSUMERS WHO TEND TO ASSOCIATE WESTERN SOUPS WITH CORN BUT JAPAN'S COMPLEX DISTRIBUTION SYSTEM NOTORIOUS FOR KEEPING OUT NEW ENTRANTS KEPT CAMPBELL'S SOUPS OUT IN THE COLD MANY STORES REFUSED TO STOCK CAMPBELL'S SOUPS SAYING THEY ALREADY LINED THEIR SHELVES WITH ANOTHER FOREIGN LABEL KNORR'S INSTANT SOUPS A BRAND OWNED BY CPC INTERNATIONAL INC OF THE US AND MARKETED IN JAPAN BY FOOD GIANT AJINOMOTO CO WITH FEWER THAN 10 SALESMEN IN JAPAN CAMPBELL'S SOUP SALES WERE LIMITED MAINLY TO UPSCALE SUPERMARKETS STOCKING UP ON IMPORTED GOODS AND WITH SALES EXPECTED TO REACH ONLY 18 BILLION YEN ON A RETAIL BASIS THIS YEAR THE SUBSIDIARY DIDN'T EVEN GET AN ADVERTISING BUDGET IT'S THE CHICKEN OR THE EGG SAYS MR NUMANO DO WE NOT SEE SALES RISE BECAUSE WE DON'T GET ADVERTISING OR DO WE NOT GET ADVERTISING BECAUSE OUR SALES ARE SO SMALL THIS ISN'T THE FIRST TIME THAT CAMPBELL HAS CONSIDERED CHANGING ITS STRATEGY NEARLY 20 YEARS AGO IT SET UP A JOINT VENTURE WITH TOYO SUISAN KAISHA LTD A MAJOR MAKER OF INSTANT NOODLES BUT THE DEAL FELL THROUGH SEVERAL YEARS LATER AFTER A CLASH IN MANAGEMENT STYLES NOW CAMPBELL'S CHALLENGE IS TO SPREAD THE NOTION OF STEAMING UP A CAN OF SOUP NEARLY HALF OF JAPAN'S SOUP SALES CONSIST OF PACKAGES OF INSTANT POWDERED SOUP OR BOUILLON CUBES ANALYSTS SAY THAT CANNED SOUPS TEND TO GIVE JAPANESE CONSUMERS THE IMAGE OF EMERGENCY FOOD STORED IN CASE OF FIRES AND EARTHQUAKES CAMPBELL JAPAN INC THE EXISTING SUBSIDIARY WILL CONTINUE TO MARKET GODIVA CHOCOLATES ALONG WITH V8 AND OTHER VEGETABLE JUICES THROUGH EXISTING DISTRIBUTION CHANNELS 9311050171 931105 TAIWAN'S TRADE SURPLUS NARROWS TAIPEI TAIWAN TAIWAN'S MERCHANDISE TRADE SURPLUS IN OCTOBER NARROWED 28 TO 710 MILLION FROM 980 MILLION IN THE YEAREARLIER MONTH THE MINISTRY OF FINANCE REPORTED THE MINISTRY SAID EXPORTS IN OCTOBER INCREASED 68 ON THE YEAR TO 751 BILLION THE THIRD HIGHEST EVER FOR A SINGLE MONTH HOWEVER THE SURPLUS IN OCTOBER DECLINED AS A RESULT OF EXPANDING IMPORTS WHICH TOTALED 680 BILLION UP 12 FROM A YEAR AGO 9311050170 931105 TODAY'S MAN OCTOBER SALES ROSE MOORESTOWN NJ MENSWEAR RETAILER TODAY'S MAN INC SAID SALES IN THE FOUR WEEKS ENDED OCT 30 ROSE 33 TO 131 MILLION FROM 99 MILLION A YEAR EARLIER SAMESTORE SALES ROSE 7 IN THE 13 WEEKS ENDED OCT 30 SALES ROSE 31 TO 357 MILLION FROM 273 MILLION SAMESTORE SALES ROSE 53 TODAY'S MAN OPERATES 21 MENSWEAR SUPERSTORES IN THREE NORTHEASTERN MARKETS 9311050169 931105 THURSDAY'S MARKETS TUMBLING BONDS DRAG INDUSTRIALS DOWN 3689 BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES FELL AGAIN AS TRADERS FURIOUSLY UNLOADED TREASURYS BEFORE TODAY'S EMPLOYMENT REPORT RISING LONGTERM INTEREST RATES AND THE FEAR OF WORSE TO COME SOCKED STOCKS TOO THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3689 POINTS TO 362498 BRINGING THE AVERAGE'S LOSS SO FAR THIS WEEK TO 15 STANDARD & POOR'S 500STOCK INDEX SKIDDED 553 POINTS TO 45749 THERE WAS A LOT OF CARNAGE ON NASDAQ SAID EDWARD LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY IF WE GET AN EMPLOYMENT REPORT THAT'S STRONG TOMORROW IT COULD BE THE STRAW THAT BREAKS THE CAMEL'S BACK IN AN OMINOUS SIGN INVESTORS BATTERED UTILITY STOCKS FOR THE SECONDSTRAIGHT DAY THE DOW JONES UTILITY AVERAGE AN INDEX OF 15 UTILITY STOCKS TUMBLED 528 POINTS TO 22640 ITS LOWEST CLOSE SINCE JAN 29 FINANCIAL STOCKS WERE PUMMELED AGAIN TOO MERRILL LYNCH SLUMPED 1 1/2 TO 89 3/8 BANKAMERICA 1 1/4 TO 40 5/8 CHEMICAL BANKING 1 5/8 TO 37 7/8 BANKERS TRUST 2 3/8 TO 74 3/4 AND JP MORGAN 1 TO 68 3/4 THE WHOLE INTERESTRATE SECTOR ESPECIALLY UTILITIES IS A GOOD INDICATOR OF WHERE INTEREST RATES ARE HEADING AND IT HAS HAD A COUPLE OF DISASTROUS DAYS SAID MR LAUX STOCKS OPENED MODESTLY LOWER BUT THE SELLING ACCELERATED IN THE AFTERNOON AS LONGTERM BONDS PLUNGED THE YIELD ON THE TREASURY'S 30YEAR BOND SHOT UP TO 617 ITS HIGHEST LEVEL SINCE AUG 24 FROM 610 WEDNESDAY AS TRADERS BRACED FOR WHAT MANY EXPECT TO BE A STRONG OCTOBER EMPLOYMENT REPORT TODAY THE MARKET IS PRICING IN THE STRONGEST OF ALL EMPLOYMENT NUMBERS SAID MATTHEW ALEXY GOVERNMENT TRADING STRATEGIST AT FIRST BOSTON WALL STREET IS EXPECTING THE REPORT TO SHOW NONFARM PAYROLLS RISING BY 150000 ECONOMISTS ALSO SUGGEST THAT EVEN AFTER TODAY'S REPORT ECONOMIC UNCERTAINTY WILL CONTINUE TO ROIL THE FINANCIAL MARKETS THE PROSPECT OF AN EMPLOYMENT REPORT THAT IS LIKELY TO BE STRONGER THAN WE HAVE SEEN DURING THE LAST FEW MONTHS TOGETHER WITH THE CONSUMER AND PRODUCER PRICE DATA NEXT WEEK AND THE UPCOMING TREASURY AUCTIONS ARE NOT A RECIPE FOR A STRONG MARKET SAID JOHN LIPSKY CHIEF ECONOMIST AT SALOMON BROTHERS MR LIPSKY WHO IS LOOKING FOR NONFARM PAYROLLS TO RISE 200000 IN OCTOBER WELL ABOVE WALL STREET'S EXPECTATIONS SAYS HE DOESN'T EXPECT THE EMPLOYMENT REPORT TO ASSUAGE THE MARKET'S CONCERNS THE MARKET HAVING DECIDED THAT GROWTH IS ON THE WAY HAS CONCLUDED THAT WE FACE THE RISK OF A SITUATION SIMILAR TO THE END OF LAST YEAR WHEN THE ECONOMY ACCELERATED MORE SHARPLY THAN ANYONE EXPECTED AND SUBSEQUENTLY LED TO HIGHER INFLATION NUMBERS AT THE START OF THIS YEAR MEANWHILE OTHER ANALYSTS SAID THERE IS A NEW RISK TO THE FINANCIAL MARKETS LURKING ON THE HORIZON THE UNDERMINING OF THE CLINTON ADMINISTRATION'S PROGRAMS IN THE WAKE OF KEY REPUBLICAN VICTORIES IN TUESDAY'S ELECTIONS IN NEW YORK CITY NEW JERSEY AND VIRGINIA I DO THINK THAT THE FUTURE OF THE NORTH AMERICAN FREE TRADE AGREEMENT IS MORE QUESTIONABLE NOW THAN IT HAS EVER BEEN AND IF NAFTA DOESN'T GET THROUGH IT WILL BE BAD FOR STOCKS AND BONDS SAID THOMAS GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER HE SAID THE DEFEAT OF NAFTA WOULD HAVE WIDESPREAD EFFECTS RANGING FROM HIGHER PRICES FOR GOODS AND SERVICES TO A LOSS OF PRESTIGE AND POWER FOR PRESIDENT CLINTON WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SANK 141 TO 11162 IN MAJOR MARKET ACTION STOCK PRICES PLUNGED VOLUME TOTALED 3212 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1656 ISSUES FELL AND 479 ISSUES ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE DECLINED ALMOST ONE POINT OR NEARLY 10 FOR EACH 1000 FACE AMOUNT TO YIELD 617 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16955 MARKS AND 10818 YEN COMPARED WITH 16925 MARKS AND 10768 YEN WEDNESDAY 9311050168 931105 PEPPERAND SALT ON STANDARD TIME WHICH IS TILTED MY WAY 9311050167 931105 WHAT'S NEWS BUSINESS AND FINANCE QVC IS EXPECTED TO CUT ITS TIES TO LIBERTY MEDIA A BIG SHAREHOLDER THAT POSES A POTENTIAL OBSTACLE TO ITS BID FOR PARAMOUNT COMMUNICATIONS AND BRING IN BELLSOUTH AS AN INVESTOR UNDER A PROPOSAL BEING DISCUSSED BY QVC AND BELLSOUTH THE REGIONAL BELL COMPANY WOULD ACQUIRE LIBERTY MEDIA'S 22 STAKE IN QVC AND INVEST ANOTHER 1 BILLION IN QVC BOND PRICES FELL AGAIN AS TRADERS UNLOADED TREASURYS BEFORE TODAY'S EMPLOYMENT REPORT THE DOW JONES INDUSTRIALS SANK 3689 TO 362498 THE TREASURY'S 30YEAR BENCHMARK FELL ALMOST A POINT ITS YIELD ROSE TO 617 TOKYO STOCKS SLID IN FRIDAY TRADING THE NIKKEI 225STOCK INDEX FELL 34433 POINTS OR 18 TO CLOSE THE MORNING SESSION AT 1860546 THE NIKKEI DROPPED 43135 POINTS THURSDAY AND IS DOWN 1704 POINTS OR 84 OVER THE PAST EIGHT TRADING SESSIONS PRODUCTIVITY ROSE AT A 39 ANNUAL RATE IN THE THIRD QUARTER REINFORCING THE NOTION THAT COMPANIES ARE ON A LONGTERM TREND TO RAISE EFFICIENCY BIG US RETAILERS REPORTED SLIGHTLY DISAPPOINTING OCTOBER SALES AS WARM WEATHER AT THE END OF THE MONTH KEPT PEOPLE FROM BUYING WINTER APPAREL DELTA PLANS TO CUT ITS AIRCRAFT CAPITAL SPENDING BY AN ADDITIONAL 1 BILLION BY DEFERRING DELIVERY OF 32 JETS FURTHERING ITS COSTCUTTING EFFORTS UAL'S TALKS WITH ITS UNION STALLED AS THE TWO SIDES CALLED A RECESS AFTER SEVERAL DAYS OF INTENSE NEGOTIATIONS THE CLINTON ADMINISTRATION PLANS TO TARGET INDEPENDENT MORTGAGE COMPANIES THAT AREN'T SUPERVISED BY FEDERAL BANKING REGULATORS IN AN EFFORT TO COMBAT LENDING DISCRIMINATION THE GOVERNMENT RELEASED NEW FIGURES SHOWING CONTINUED RACIAL DISPARITY IN MORTGAGELENDING PATTERNS A FEDERAL PROGRAM THAT PROVIDES LOANS TO DISADVANTAGED SMALLBUSINESS OWNERS GAVE LOANS TO BUSINESSES CONTROLLED BY THE GOVERNOR OF ARKANSAS AN EXPROFESSIONAL FOOTBALL PLAYER AND OTHER POSSIBLY UNQUALIFIED BORROWERS MERRILL LYNCH AND PAINEWEBBER ARE BATTLING LAWSUITS AND ARBITRATION CASES BROUGHT BY INVESTORS WHO SAY THEY WERE MISLED INTO BUYING PARTNERSHIPS THAT LATER SOURED PRIMERICA'S SMITH BARNEY SHEARSON IS GIVING SOME EMPLOYEES HARDSHIPDUTY BONUSES TO BOOST MORALE AKZO AND NOBEL INDUSTRIES ARE DISCUSSING A MERGER OF THE DUTCH AND SWEDISH FIRMS THAT COULD CREATE A LEADING EUROPEAN SPECIALTY CHEMICAL FIRM ALEXANDER & ALEXANDER RESTATED ALMOST THREE YEARS' OF EARNINGS CITING INFLATED REVENUE BY ITS CONSULTING UNIT AIG SETTLED ITS DISPUTE WITH THE FORMER HEAD OF ITS DERIVATIVES DIVISION HOWARD SOSIN AGREEING TO BUY SOSIN OUT FOR AN UNDISCLOSED AMOUNT BLOCKBUSTER IS TEAMING UP WITH FIVE BIG HARDWARE COMPANIES TO DEMONSTRATE AND RENT CDROM SOFTWARE PROGRAMS IN VIDEORENTAL STORES ACCOUNTING REGULATORS MAY DELAY FOR A YEAR A REQUIREMENT THAT COMPANIES DISCLOSE IN ANNUAL REPORTS THE COST OF THEIR EMPLOYEE STOCK OPTIONS MANY COMPANIES WOULD FAVOR SUCH A DELAY NYNEX SAID IT WILL TAKE A CHARGE OF UP TO 275 MILLION TO END AN ILLFATED FORAY INTO INFORMATION SERVICES AND SELL MOST OF ITS AGS COMPUTER UNIT JANUS CAPITAL SAID MUTUALFUND MANAGER JAMES CRAIG WILL LEAVE HIS POST AS MANAGER OF JANUS VENTURE FUND TO FOCUS ON THE JANUS FUND THE MOVE IS A SIGN THAT THE RAPID FLOW OF MONEY INTO MUTUAL FUNDS IS BEGINNING TO STRAIN MANAGERS' RESOURCES CHINA IS CONSIDERING ABOLISHING ITS OFFICIAL EXCHANGE RATE NEXT YEAR AMID CALLS FOR FASTER ECONOMIC REFORM BONDS LEHMAN BROTHERS TREASURY INDEX 550486 OFF 3490 COMMODITIES OIL 1740 A BARREL OFF NINE CENTS DOW JONES FUTURES INDEX 13277 UP 021 SPOT INDEX 11976 OFF 021 DOLLAR 10818 YEN UP 050 16955 MARKS UP 00030 9311050166 931105 SMALL STOCK FOCUS STOCKS DECLINE AS RISING INTEREST RATES CONTINUE TO FUEL SELLOFF OF EQUITIES BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK INTEREST RATES ROCKETED HIGHER SPARKING MORE SELLING FRENZY AMONG SMALLCOMPANY INVESTORS EQUITY PRICES WERE BROADLY LOWER AS SELLERS SPARED NO GROUP IN THE PURGE BANKING AND OTHER FINANCIAL ISSUES TOOK THE BRUNT OF THE ABUSE BUT TECHNOLOGY STOCKS ALSO PERFORMED POORLY THE RUSSELL 2000 INDEX WHICH MEASURES THE PERFORMANCE OF SMALLCAPITALIZATION ISSUES TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES PLUNGED 400 POINTS OR 156 TO END AT 25311 WEDNESDAY THE BAROMETER PLUMMETED 12 AFTER HITTING A RECORD 26017 ON TUESDAY ON NASDAQ THE COMPOSITE INDEX SWOONED 1569 POINTS OR 203 TO 75726 AFTER TUMBLING 11 WEDNESDAY ADVANCING NASDAQ STOCKS LAGGED WELL BEHIND DECLINERS 997 TO 2067 ON NASDAQ NATIONAL MARKET VOLUME OF 278191400 SHARES AND TOTAL VOLUME OF 326383510 SHARES WEDNESDAY NATIONAL MARKET VOLUME WAS 297648100 SHARES AND TOTAL VOLUME WAS 348806800 SHARES A FRESH BATCH OF POSITIVE ECONOMIC DATA UNDERMINED BOND PRICES WHICH DETERIORATED THROUGHOUT THE SESSION A STRONGERTHANEXPECTED INCREASE IN SEPTEMBER FACTORY ORDERS AND A SHARP DROP IN INITIAL JOBLESS CLAIMS CAUSED THE LONG BOND TO ERODE MORE THAN ONE POINT BY DAY'S END THE PRICE HAD RECOVERED SLIGHTLY FINISHING DOWN NEARLY ONE POINT ITS YIELD CLIMBED TO 617 THIS WAS A CONTINUATION OF WHAT STARTED WEDNESDAY SAID LARRY KINNEY HEAD OF OVERTHECOUNTER TRADING AT SOUNDVIEW FINANCIAL GROUP MANY OF THESE STOCKS WERE OVERVALUED ESPECIALLY SOME OF THE TECHNOLOGY ISSUES LOSING TECH ISSUES INCLUDED ALDUS CORP SEATTLE WHICH FELL 1 TO 21 CYPRESS SEMICONDUCTOR CORP NYSE SAN JOSE CALIF WHICH LOST 5/8 TO 11 3/4 AND ATMEL CORP ALSO OF SAN JOSE WHICH SLIPPED 1 1/8 TO 25 3/8 MR KINNEY SAID HE EXPECTS TO SEE SOME KIND OF BOUNCE TOMORROW BECAUSE WE SAW PRETTY GOOD SELLING BUT NOT PANICTYPE SELLING BUT HE ADDED THAT MUCH WILL DEPEND ON INTEREST RATES AND THE RELEASE OF OCTOBER EMPLOYMENT DATA GREG KUHN WHO HEADS KUHN ASSET MANAGEMENT SAID HE THINKS THE SELLING COULD CONTINUE MORE AND MORE STOCKS ARE TOPPING OUT MR KUHN SAID HE NOTED THAT IN THE MIDDLE OF OCTOBER NASDAQ VOLUME WAS EXCEEDING BIG BOARD VOLUME WHICH HE SAID SHOWED SPECULATIVE BUYING ONCE SMALL STOCKS RAN UP STRONGLY THE BIG UPWARD MOVE LEFT THEM IN A POSITION TO UNDERPERFORM THE REST OF THE MARKET BECAUSE THE RALLY HAD PLAYED ITSELF OUT AMONG INTERESTRATE SENSITIVE STOCKS BSB BANCORP INC BINGHAMTON NY GAVE UP 1 1/2 TO 40 INDEPENDENCE BANCORP IN PERKASIE PA SKIDDED 2 TO 25 1/2 AND WEST ONE BANCORP CULVER CITY CALIF FELL 1 1/8 TO 26 1/2 ELSEWHERE SOFTWARE TOOLWORKS INC NOVATO CALIF SLIPPED 1 1/8 TO 13 7/8 AFTER THE CLOSE WEDNESDAY THE COMPANY SAID ITS FISCAL SECONDQUARTER EARNINGS WERE FIVE CENTS A SHARE BELOW THE SIX CENTS REPORTED A YEAR EARLIER AND THE NINE CENTS FORECAST BY ANALYSTS PRATT HOTEL CORP AMEX IN DALLAS SAID ITS THIRDQUARTER NET INCOME ROSE TO 28 CENTS A SHARE FROM THREE CENTS A SHARE A YEAR EARLIER THE CASINO AND HOTEL OWNER AND OPERATOR'S STOCK PRICE ROSE 1 1/8 TO 5 3/8 WEAKER OCTOBER SAMESTORE SALES SENT OLD AMERICA STORES INC NASDAQ SLIDING 2 7/8 TO 10 THE HOMEDECORATINGPRODUCTS RETAILER IN HOWE TEXAS SAID SAMESTORE SALES FELL 08 LAST MONTH ALTHOUGH TOTAL SALES ROSE 158 BUT US SHOE CORP NYSE IN CINCINNATI JUMPED 1 1/2 TO 12 1/2 AFTER REPORTING THAT OCTOBER SAMESTORE SALES ROSE 92 TOTAL RETAIL SALES WERE UP 59 FOR THE MONTH AN ARTICLE IN YESTERDAY'S WALL STREET JOURNAL SPARKED SOME SELLING AMONG ASIAN CLOSEDEND STOCK FUNDS ACCORDING TO THE ARTICLE SOME FUND MONEY MANAGERS SAY IT'S TIME TO DUMP SOME OF THESE FUNDS WHICH HAVE ROCKETED TO NEW HIGHS AMONG THOSE MENTIONED THE INDIA GROWTH FUND DROPPED 2 TO 21 1/8 THE KOREAN INVESTMENT FUND DIPPED 7/8 TO 13 3/8 THE ASIA PACIFIC FUND SAGGED 2 1/2 TO 19 3/4 THE INDONESIA FUND FELL 1 TO 12 3/4 THE JAKARTA GROWTH FUND INC EASED 3/8 TO 9 7/8 THE SINGAPORE FUND SHRANK 1 1/8 TO 18 5/8 AND THE KOREA FUND LOST 1 1/8 TO 16 3/4 ALL ARE TRADED ON THE NYSE 9311050165 931105 REVIEW & OUTLOOK EDITORIAL BIG APPLE POLISHES OFF POLS WILL VOTERS HAVE TO PASS TERM LIMITS EVERYWHERE THAT THEY HAVE THE RIGHT OF INITIATIVE BEFORE CONGRESS TAKES NOTICE THIS WEEK THE TERMLIMIT TRAIN ROARED INTO THE NORTHEAST TERM LIMITS WON TWO TO ONE IN MAINE SUFFOLK COUNTY NY AND ROCHESTER NY AND ITS SUBURBS A PROXY FOR TERM LIMITS THE RIGHT TO RECALL PUBLIC OFFICIALS WON 75 OF THE VOTE IN NEW JERSEY BUT THE REAL CONFIRMATION OF TERM LIMITS' UNIVERSAL APPEAL WAS ITS 60 VICTORY IN THAT ANTIREFORM BASTION NEW YORK CITY VICTORY IN THE BIG APPLE POP 73 MILLION CAME DESPITE THE OPPOSITION OF EVERY MAJOR DAILY NEWSPAPER EVERY WELLKNOWN INCUMBENT COMMON CAUSE THE CHAMBER OF COMMERCE AND ALL OF THE UNIONS IN FACT EVERY LARGE INTEREST GROUP SAVE ONE OPPOSED IT THE VOTERS TERM LIMITS CARRIED ALL FIVE OF THE CITY'S BOROUGHS FROM SUBURBAN STATEN ISLAND TO MOTLEY MANHATTAN EXIT POLLS REPORTED IN THE NEW YORK DAILY NEWS FOUND THAT TERM LIMITS WON A MAJORITY OF DEMOCRATS REPUBLICANS AND INDEPENDENTS MEN AND WOMEN BACKED THE CONCEPT IN EQUAL NUMBERS A CLEAR MAJORITY OF BLACK VOTERS WANT TERM LIMITS SUPPORT AMONG HISPANIC VOTERS WAS EVEN GREATER THAN AMONG WHITES THE ARGUMENTS OF CRITICS THAT TERM LIMITS WERE RACIST OR EXCLUSIONARY CLEARLY BOMBED AMONG ITS PRESUMED MINORITY VICTIMS THE BEST OF WHOM NOW CAN AT LEAST THINK OF SERVING IN OFFICE EVEN SO SOME DESPERATE NEW YORK CITY COUNCIL MEMBERS WANT THE JUSTICE DEPARTMENT TO VOID THE MEASURE AS A VIOLATION OF THE VOTING RIGHTS ACT CONCEIVED TO GUARANTEE EXTENSION OF THE FRANCHISE THE ACT HERE IS BEING USED AS A VEHICLE FOR THOSE SEEKING CONTINUED POLITICAL PRIVILEGE INCUMBENTS MAY OFTEN BE HOPELESS AT SOLVING PUBLIC PROBLEMS BUT THEY ARE ENDLESSLY IMAGINATIVE IN TRYING TO BLOCK TERM LIMITS BEFORE AND AFTER THEY'RE APPROVED HOUSE SPEAKER TOM FOLEY IS SUING TO OVERTURN HIS STATE'S TERMLIMIT LAW CITY COUNCIL INCUMBENTS IN CINCINNATI OHIO AND HOUSTON SUED TO VOID LOCAL TERM LIMITS AND WON DUBIOUS COURT RULINGS ALLOWING THE POLS TO REMAIN ON THIS MONTH'S BALLOT THEIR CONSTITUENTS WEREN'T AMUSED AND VOTED MOST OF THEM OUT OF OFFICE IN NEW YORK INCUMBENTS AFFECTED BY TERM LIMITS WILL LIKELY BE EVEN MORE BRAZEN IN THEIR EFFORTS TO KEEP THEIR LIFELONG GAME GOING CITY COUNCIL PRESIDENT PETER VALLONE SAYS THE CAMPAIGN TO STOP TERM LIMITS IS NOT DEAD HE SUGGESTS MAYBE THE STATE LEGISLATURE COULD BE ASKED TO REPEAL THEM BUT THE LAST THING ALBANY'S POLITICIANS WANT IS A LOT OF PEOPLE DISCOVERING THEY EXIST COUNCIL MEMBERS ARE TALKING ABOUT PUTTING A PROPOSAL EXEMPTING THEMSELVES FROM THE LIMIT ON A FUTURE BALLOT BUT THE DAYS OF HIDING BETWEEN ELECTIONS FOR NEW YORK CITY'S ENTRENCHED POLS ARE OVER RON LAUDER THE BUSINESSMAN AND FORMER AMBASSADOR WHO SPENT 1 MILLION ON THE TERMLIMIT CAMPAIGN INTENDS TO BE A WATCHDOG ON THE ISSUE MR LAUDER AN UNSUCCESSFUL 1989 MAYORAL CANDIDATE HAS BECOME A FORCE IN NEW YORK POLITICS THROUGH HIS EFFORTS TO PROMOTE CITIZEN INITIATIVES YESTERDAY HE ANNOUNCED THAT HE'LL WORK TO EXTEND TERM LIMITS TO NEW YORK STATE OFFICIALS AND RALLY SUPPORT TO ALLOW THE PUBLIC TO PROPOSE STATEWIDE INITIATIVES NATIONALLY MR LAUDER'S BIG SUCCESS IN NEW YORK TUESDAY WILL ENERGIZE TERMLIMIT SUPPORTERS THEY ARE COMPILING A LIST OF MORE THAN 2000 JURISDICTIONS AROUND THE COUNTRY THAT WILL ALLOW VOTERS TO IMPOSE LOCAL TERM LIMITS IF WE PASS TERM LIMITS SOMEWHERE IN ALL 50 STATES THE PRESSURE FOR TERM LIMITS ON CONGRESS WILL BE THAT MUCH GREATER SAYS HOWARD RICH OF US TERM LIMITS HE DOESN'T HAVE TO WORRY MUCH ABOUT LOSING WITH THE EXCEPTION OF THREE LOCAL TERMLIMIT PROPOSALS IN NEW YORK STATE THAT WERE ACTUALLY DISGUISED INCUMBENT PROTECTION DEVICES THE IDEA HAS PASSED EVERYWHERE IT'S BEEN ON THE BALLOT OPPONENTS OF TERM LIMITS SAY THEY WILL COST VOTERS THE SERVICES OF MANY DEDICATED PUBLIC SERVANTS IN FACT THE BEST OF THEM GO TO ROT OR QUIT BECAUSE THERE'S NO HOPE OF MOVING UP THE POLITICAL LADDER THAT'S BECAUSE SO MANY BRAINDEAD POLS CLOG THE ARTERIES OF GOVERNMENT AND PREVENT WORTHY CITIZENS FROM INJECTING FRESH IDEAS INTO THE PROCESS THE US ELECTORATE IS THE MOST DIVERSE IN THE WORLD BUT AMERICANS OVERWHELMINGLY AGREE ON ONE THING TOO MUCH FAMILIARITY WITH A POLITICAL OFFICE OFTEN BREEDS CONTEMPT FOR THE ELECTORATE NEW YORK CITY'S REAL PROBLEMS ARE THE RESULT LARGELY OF ITS MEDIOCRE POLITICIANS NEW YORKERS KNOW THAT TUESDAY AT THE FIRST OPPORTUNITY THEY DID SOMETHING ABOUT IT 9311050164 931105 GTECH HOLDINGS CORP SECONDARY OFFERING GROWS TO SIX MILLION WEST GREENWICH RI GTECH HOLDINGS CORP INCREASED ITS PLANNED SECONDARY OFFERING TO SIX MILLION SHARES AND PRICED THE SHARES AT 34375 APIECE A UNIT OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP PLANS TO SELL 43 MILLION SHARES LEAVING IT HOLDING 98 MILLION OR 23 OF THE COMPANY'S 429 MILLION SHARES OUTSTANDING MANAGEMENT PLANS TO SELL 17 MILLION SHARES LEAVING IT HOLDING 37 MILLION SHARES OR 84 OF SHARES OUTSTANDING GTECH WHICH DESIGNS AND OPERATES COMPUTERIZED NETWORKS FOR GOVERNMENTSPONSORED OR LICENSED LOTTERIES ORIGINALLY PLANNED TO SELL FIVE MILLION SHARES DONALDSON LUFKIN & JENRETTE SECURITIES IS THE LEAD UNDERWRITER IN THE OFFERING GTECH HAS OFFERED AN OVERALLOTMENT OF 900000 SHARES TO THE UNDERWRITERS 9311050163 931105 CALDOR OCTOBER SALES ROSE 14 FOR THE 13 WEEKS ENDED OCT 30 TOTAL SALES ROSE 16 TO 547 MILLION FROM 473 MILLION SAMESTORE SALES ROSE 28 CALDOR OPERATES 147 STORES IN THE NORTHEAST AND MIDATLANTIC STATES 9311050162 931105 FASB MAY DELAY ITS PLAN TO REQUIRE THE DISCLOSURE OF STOCK OPTIONS' COST BY LEE BERTON AND JOANN S LUBLIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD MAY DELAY FOR A YEAR A REQUIREMENT THAT COMPANIES DISCLOSE IN ANNUAL REPORTS THE COST OF EMPLOYEE STOCK OPTIONS FASB OFFICIALS INDICATED UNDER THE CURRENT FASB PROPOSAL THE DISCLOSURE WOULD BE MADE IN THE FORM OF FOOTNOTES STARTING WITH 1994 ANNUAL REPORTS A DELAY COULD PUSH IT TO 1995 REPORTS A STEP MANY COMPANIES WOULD FAVOR THE FASB THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS IS STILL IS GOING AHEAD WITH A MUCH MORE CONTROVERIAL PROPOSAL THAT REQUIRES COMPANIES TO DEDUCT THE COST OF EMPLOYEE STOCK OPTIONS FROM THEIR EARNINGS STARTING WITH 1997 ANNUAL REPORTS THAT PLAN WHICH THE ACCOUNTING BOARD PROPOSED IN APRIL IS BEING STRONGLY OPPOSED BY MOST COMPANIES AND MAJOR ACCOUNTING FIRMS THE FASB ORIGINALLY PLANNED TO ISSUE A FINAL RULE ON THE FOOTNOTES PROPOSAL IN THE SECOND HALF OF 1994 AFTER HOLDING PUBLIC HEARINGS BUT EARLIER THIS WEEK DENNIS BERESFORD FASB CHAIRMAN TOLD A MEETING OF THE NATIONAL ASSOCIATION OF CORPORATE DIRECTORS IN WASHINGTON DC THAT THE ACCOUNTING BOARD MIGHT HAVE TO RECONSIDER WHEN THE FOOTNOTE REQUIREMENT BECOMES EFFECTIVE IF THE FINAL RULE IS ISSUED TOO LATE NEXT YEAR HE TOLD THE GROUP THAT IT IS FAIRLY COMMON FOR THE FASB TO DEFER AN EFFECTIVE DATE IF ENOUGH PARTIES REQUEST IT MOST COMPANIES PARTICUARLY HIGHTECH CONCERNS THAT USE STOCK OPTIONS TO ATTRACT EMPLOYEES OPPOSE DEDUCTING OPTION COSTS FROM PROFITS BUT THEY WOULD PREFER FOOTNOTE DISCLOSURE OVER REDUCING EARNINGS STILL MANY COMPANIES HAVE CRITICIZED THE FASB'S MEASUREMENT METHODS EVEN FOR THE INITIAL FOOTNOTE REQUIREMENT SAYING ANY NEW MEASUREMENTS WOULD REQUIRE MORE TIME FOR IMPLEMENTATION INDEED THE ACCOUNTING BOARD IS STILL TRYING TO DECIDE WHICH MEASURING METHOD IF ANY IT SHOULD FAVOR MR BERESFORD AND RICHARD Y ROBERTS A SECURITIES AND EXCHANGE COMMISSION MEMBER WHO ALSO SPOKE TO THE DIRECTORS GROUP DISAGREED OVER HOW MANY CHOICES A COMPANY SHOULD HAVE TO MEASURE OPTIONS THE FASB HAS CONSIDERED SAYING TO CORPORATIONS THAT YOU ESTIMATE THE FAIR VALUE OF OPTIONS ANY WAY YOU WANT TO MR BERESFORD SAID BUT MR ROBERTS SAID HE PREFERS USING ONLY ONE METHOD CALLED BINOMIAL PRICING WHICH SOME CONSIDER MORE ACCURATE THAN OTHER METHODS WHEN VALUING DIVIDENDPAYING STOCK THE FASB'S PROPOSAL PERMITS USE OF BINOMIAL PRICING OR THE BLACKSCHOLES METHOD WHICH WAS FIRST DEVELOPED TO VALUE TRADED OPTIONS BOTH METHODS EMPLOY STOCK VOLATILITY AS A KEY FACTOR IT IS INCUMBENT FOR THE FASB AND SEC TO ZERO IN ON ONE OPTION VALUATION METHOD MR ROBERTS TOLD REPORTERS AFTER HIS SPEECH THE SEC NOW GIVES COMPANIES A CHOICE OF TWO METHODS WHEN THEY REPORT STOCKOPTION VALUES IN THEIR PROXY STATEMENTS SELECTION OF ONE OPTIONVALUATION METHOD WOULD FORCE THE COMMISSION TO CHANGE ITS PROXY REQUIREMENTS HE SAID BUT HE CONCEDED THAT THE SEC HAS A LONG WAY TO GO BEFORE MAKING A DECISION CHRISTI HARLAN IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9311050161 931105 SINGAPORE EXPECTED TO GET 39 BILLION IN US INVESTMENTS OVER FIVE YEARS BY G PIERRE GOAD STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE US COMPANIES INTEND TO INVEST US39 BILLION IN SINGAPORE OVER THE NEXT FIVE YEARS USBASED PETROLEUM AND CHEMICAL CONCERNS ACCOUNT FOR MOST OF THE PLANNED SPENDING ON PLANT AND EQUIPMENT ACCORDING TO A SURVEY BY THE US EMBASSY HERE WHILE THE TOTAL AMOUNT OF PLANNED INVESTMENT IN FIXED ASSETS HERE BY US FIRMS IS LITTLE CHANGED FROM A SIMILAR 1990 SURVEY THE AMOUNT OF NEW SPENDING PLANNED BY ELECTRONICS CONCERNS IS DOWN BY MORE THAN HALF FROM THREE YEARS AGO THE EMBASSY SAID IT ESTIMATES THAT THE 570 RESPONDENTS TO ITS SURVEY REPRESENT MORE THAN 90 OF TOTAL US INVESTMENT IN THE ISLAND REPUBLIC AS OF OCTOBER US COMPANIES HAD INVESTED A CUMULATIVE US189 BILLION IN SINGAPORE AFTER DEPRECIATION THE NET BOOK VALUE OF THE EXISTING STOCK OF ASSETS STOOD AT US62 BILLION ACCORDING TO THE SURVEY ALTHOUGH US CONCERNS CONTINUED TO GIVE SINGAPORE VERY HIGH MARKS IN SEVERAL FUNDAMENTAL AREAS THE EMBASSY SAID AMERICAN COMPANIES ARE WORRIED ABOUT RISING COSTS AND SINGAPORE'S TIGHT LABOR MARKET THE MOST SERIOUS ISSUE IS THE CHRONIC LABOR SHORTAGE AT ALL SKILL AND EDUCATIONAL LEVELS NUMEROUS AMERICAN COMPANIES CITED THE DIFFICULTY IN FINDING AND KEEPING CLERICAL SYSTEMS TECHNICAL AND OTHER SKILLED PERSONNEL IT SAID CONTRIBUTING TO SINGAPORE'S GROWING REPUTATION AS AN EXPENSIVE BUSINESS ENVIRONMENT ARE THE HIGH COST OF LAND AND RENTALS AND THE RISING COST OF LIVING FOR EXPATRIATES THE EMBASSY SAID US COMPANIES EMPLOYED 91145 PEOPLE IN SINGAPORE AS OF MID1993 OR ABOUT 6 OF THE REPUBLIC'S WORK FORCE THE EMBASSY SAID SINGAPOREANS ACCOUNT FOR ABOUT THREEQUARTERS OF THE WORKERS AT US FIRMS ABOUT THE SAME AS IN 1990 ABOUT 1 OF THE EMPLOYEES ARE US CITIZENS AND THE REMAINDER ARE FROM THIRD COUNTRIES WHILE THE FOREIGN WORKERS ARE CONCENTRATED IN THE MANUFACTURING SECTOR THE EMBASSY SAID THAT US CONCERNS ARE INCREASINGLY BRINGING IN SENIOR MIDDLE MANAGEMENT FROM THIRD COUNTRIES AS THEY ENCOUNTER GREATER DIFFICULTY IN FINDING LOCAL MANAGERIAL TALENT US PETROLEUM REFINING AND STORAGE COMPANIES WHICH HAVE US14 BILLION OF ASSETS AT BOOK VALUE HERE NOW PLAN TO INVEST AN ADDITIONAL US13 BILLION OVER THE NEXT FIVE YEARS CHEMICAL AND PHARMACEUTICAL CONCERNS WHICH HAVE US13 BILLION OF ASSETS NOW INTEND TO SPEND US16 BILLION THE SINGAPORE GOVERNMENT HAS TARGETED BOTH SECTORS FOR MAJOR EXPANSION US ELECTRONICS CONCERNS WHICH NOW HAVE US23 BILLION OF ASSETS HERE PLAN TO INVEST AN ADDITIONAL US597 MILLION OVER THE NEXT FIVE YEARS THAT COMPARES WITH US13 BILLION IN THE 1990 SURVEY THE DECLINE REFLECTS HIGHER COSTS OF MANUFACTURING IN SINGAPORE COMPARED WITH REGIONAL COMPETITORS SUCH AS MALAYSIA AND CHINA THE MALAYSIAN ISLAND OF PENANG FOR EXAMPLE HAS BECOME AN INCREASINGLY IMPORTANT MANUFACTURING CENTER FOR THE US ELECTRONICS INDUSTRY ALTHOUGH THEIR SPENDING ON FIXED ASSETS IS RELATIVELY SMALL US CONCERNS IN SUCH SECTORS AS INSURANCE ENGINEERING AND ACCOUNTING PLAN MAJOR INCREASES IN INVESTMENT OVER THE NEXT FIVE YEARS COMPARED WITH THE 1990 SURVEY THE EMBASSY SAID 9311050160 931105 POLITICS & POLICY HOUSE SPEAKER FOLEY DISMISSES PROPOSAL TO RAISE AMMUNITION TAX IN HEALTH BILL BY RICK WARTZMAN AND MARY AGNES CAREY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON HOUSE SPEAKER THOMAS FOLEY SHOT DOWN THE IDEA OF INCLUDING IN HEALTHREFORM LEGISLATION A TAX INCREASE ON HANDGUN AMMUNITION THE IDEA OF BOOSTING THE FEDERAL TAX ON HANDGUN BULLETS IS BEING PUSHED BY SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN WHO HAS INTRODUCED LEGISLATION THAT WOULD GENERALLY RAISE THE LEVY TO 50 FROM 11 THE NEW YORK DEMOCRAT HAS SAID HE CAN'T IMAGINE A HEALTHCARE REFORM BILL MAKING IT OUT OF HIS COMMITTEE WITHOUT AN AMMUNITIONTAX INCREASE BUT MR FOLEY A WASHINGTON DEMOCRAT TOLD REPORTERS THAT A TAX INCREASE ON HANDGUN BULLETS WAS TOTALLY OUTSIDE OF THE REALM THIS IS NOT A GOOD OR HELPFUL SUGGESTION HE SAID BECAUSE IT JUST CREATES AN ISSUE THAT IS REMOTE FROM THE HEALTHCARE DEBATE IT ISN'T CLEAR HOWEVER THAT HOUSE DEMOCRATS AS A GROUP WILL BACK MR FOLEY ON THIS POINT DURING THE PAST FOUR ELECTION CYCLES THE NATIONAL RIFLE ASSOCIATION GAVE MR FOLEY 17350 IN DIRECT CAMPAIGN CONTRIBUTIONS ACCORDING TO THE NATIONAL LIBRARY ON MONEY & POLITICS THAT RANKS HIM 28TH OUT OF 290 HOUSE AND SENATE MEMBERS WHO RECEIVED NRA MONEY CLINTON ADMINISTRATION OFFICIALS SAY THEY'RE WILLING TO CONSIDER THE AMMUNITIONTAX IDEA AS PART OF THEIR HEALTHCARE PACKAGE BUT THEY'VE BEEN NONCOMMITTAL SEVERAL CLINTON ADVISERS INDICATED THAT WHILE MANY IN THE WHITE HOUSE PRIVATELY WELCOME MR MOYNIHAN TAKING ON THE GUN LOBBY IT'S DOUBTFUL THEY'LL EVER FORMALLY SUPPORT HIS TAX PROPOSAL MEANWHILE THE WHITE HOUSE YESTERDAY TRIED TO RECOVER FROM A POLITICAL SLIPUP AND IS NOW SAYING THAT ABOUT 30 OF INSURED AMERICANS WOULD PAY MORE FOR THEIR BENEFITS UNDER THE PRESIDENT'S HEALTHCARE PLAN THAN THEY CURRENTLY DO THAT'S DOWN FROM ITS 40 ESTIMATE A WEEK AGO THE NEW FIGURE REFLECTS WHAT PEOPLE WOULD PAY OUT OF POCKET FOR THEIR HEALTH COVERAGE INCLUDING COPAYMENTS AND DEDUCTIBLES LAST WEEK'S PROJECTION TOOK INTO ACCOUNT ONLY THEIR PREMIUM PAYMENTS AFTER THE 40 FIGURE WAS PROVIDED IN CONGRESSIONAL TESTIMONY BY HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA WHITE HOUSE OFFICIALS WERE LEFT SHAKING THEIR HEADS THEY KNEW THAT BY CUTTING THE NUMBERS A DIFFERENT WAY THEY COULD BE EVEN MORE PRECISE AND LOOK BETTER AT THE SAME TIME REP JIM COOPER A TENNESSEE DEMOCRAT CALLED MS SHALALA'S PERFORMANCE SLOPPY TESTIMONY THE 30 NUMBER WAS PROVIDED YESTERDAY BY WHITE HOUSE BUDGET DIRECTOR LEON PANETTA DURING AN APPEARANCE BEFORE THE FINANCE COMMITTEE MR PANETTA SAID THAT AMONG THE 70 OF THE INSURED POPULATION WHO WOULD PAY THE SAME OR LESS FOR THE BENEFITS THEY RECEIVE UNDER THE PRESIDENT'S PLAN THE AVERAGE SAVINGS WOULD BE 61 A MONTH FOR THE 30 WHO WOULD PAY MORE THE AVERAGE COST INCREASE WOULD BE ABOUT 24 A MONTH BUT MANY OF THOSE WHO PAY MORE MR PANETTA STRESSED WILL RECEIVE BETTER BENEFITS MOREOVER THE CLINTON PLAN WOULD GIVE EVERYONE THE SECURITY OF KNOWING THEY WILL ALWAYS HAVE HEALTH COVERAGE EVEN IF THEY GET SICK OR LOSE THEIR JOBS MR PANETTA GENERALLY FACED MORE POINTED QUESTIONING THAN DID TREASURY SECRETARY LLOYD BENTSEN WHO APPEARED BEFORE THE PANEL A DAY EARLIER SENS BOB PACKWOOD R ORE AND MALCOLM WALLOP R WYO FOR EXAMPLE ZEROED IN ON THE LIMITS THAT THE CLINTON ADMINISTRATION SAYS IT WOULD IMPOSE ON THE SUBSIDIES IT WOULD OFFER TO HELP SMALL BUSINESSES AND LOWINCOME INDIVIDUALS PAY FOR THEIR HEALTH COVERAGE UNDER THE CLINTON PROPOSAL THE PRESIDENT WOULD HAVE TO NOTIFY CONGRESS IF IT APPEARS THE SUBSIDY CAP IS GOING TO BE BREACHED BUT THE PLAN DOESN'T SPELL OUT WHAT WOULD HAPPEN IF CONGRESS DOESN'T THEN ACT MR PANETTA SAID HE DIDN'T BELIEVE THAT PEOPLE'S BENEFITS WOULD BE CUT IF THE SUBSIDY CEILING WERE HIT BUT YOU'RE GOING TO HAVE TO FIND OTHER WAYS TO PAY FOR THOSE ADDITIONAL COSTS HE SAID MR PANETTA DEFENDED THE CAP AS A SOLID MEASURE THAT WOULD FORCE THE ADMINISTRATION AND CONGRESS TO DEAL WITH ANY SUBSIDY OVERRUN BUT IT'S UNCLEAR WHETHER IT WILL BE SEEN THAT WAY BY THE CONGRESSIONAL BUDGET OFFICE GETTING THE CBO'S APPROVAL IS CRITICAL FOR THE WHITE HOUSE TO SHOW THAT ITS FINANCING PLAN IS CREDIBLE AT THE HEARING MR MOYNIHAN FURTHER ADVANCED HIS CASE FOR THE TAX INCREASE ON HANDGUN AMMUNITION AS THE ROOM GREW HUSHED HE LIT INTO THE NRA FOR CALLING HIS PROPOSAL LAUGHABLE WELL YOU'RE NOT SUPPOSED TO SAY SUCH THINGS ABOUT THE NATIONAL RIFLE ASSOCIATION BUT I THINK THAT'S OBSCENE MR MOYNIHAN SAID MR MOYNIHAN PASSED AROUND TWO 9MM HOLLOWTIPPED BLACK TALON BULLETS ONE OF WHICH WAS SPENT THE MOYNIHAN BILL INCLUDES A 10000 TAX ON SUCH AMMUNITION WHICH THE SENATOR SAID WAS USED TO KILL COPS IN RESPONSE OLIN CORP WHOSE WINCHESTER UNIT MAKES THE BLACK TALON PUT OUT A STATEMENT ARGUING THAT RATHER THAN FOCUS ON THE GUN OR AMMUNITION WE BELIEVE THE FOCUS SHOULD BE ON THE GUNCARRYING CRIMINAL SEPARATELY LAURA TYSON THE CHAIRWOMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS TOLD REPORTERS AFTER A HOUSE WAYS AND MEANS COMMITTEE HEARING THAT THERE MIGHT BE SOME NEGOTIATION BETWEEN THE ADMINISTRATION AND CONGRESS OVER THE CLINTON PROPOSAL TO PICK UP 80 OF MEDICAL COSTS FOR EARLY RETIREES THE ADMINISTRATION SAYS THE PLAN WOULD HELP US FIRMS COMPETE AGAINST FOREIGN COMPANIES BUT CRITICS SAY IT WOULD BE AN UNJUSTIFIED SUBSIDY FOR CERTAIN BUSINESSES MS TYSON SAID SHE WAS SURPRISED THAT THE PROVISION WHICH WOULD COST 116 BILLION OVER THREE YEARS HAS DRAWN MUCH OPPOSITION THAT DOES SUGGEST THAT WE NEED TO ENGAGE THE CONGRESS ON THIS ISSUE SHE SAID 9311050159 931105 WENDY'S TO REDEEM DEBENTURES DUBLIN OHIO WENDY'S INTERNATIONAL INC SAID IT WILL REDEEM ABOUT 30 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE DEC 1 2010 THE FASTFOOD RESTAURANT OPERATOR SAID IT WILL REDEEM THE BONDS AT 10145 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST ON OR BEFORE JAN 31 THE DEBENTURES ARE CONVERTIBLE INTO WENDY'S COMMON STOCK UNTIL THE REDEMPTION DATE AT THE RATE OF 1744 A SHARE WENDY'S WAS QUOTED AT 16375 UP 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9311050158 931105 WHO'S NEWS HOME NUTRITIONAL SERVICES INC HOME NUTRITIONAL SERVICES INC ATLANTA RICHARD S TURNER THE 45YEAROLD CHIEF FINANCIAL OFFICER OF MEDICAL CARE AMERICA INC WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS PROVIDER OF HOMEINFUSION SERVICES AS CHIEF FINANCIAL OFFICER MR TURNER SUCCEEDS DON MILLARD 46 WHO REMAINS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF HEALTHDYNE INC WHICH OWNS 68 OF HOME NUTRITIONAL SERVICES 9311050157 931105 VALUE CITY OCTOBER SALES DROP COLUMBUS OHIO VALUE CITY DEPARTMENT STORES INC SAID THAT SAMESTORE SALES FELL 46 FOR THE FOUR WEEKS ENDED OCT 30 TOTAL SALES DROPPED 29 TO 645 MILLION FROM 664 MILLION FOR THE SAME PERIOD A YEAR AGO SAMESTORE SALES FOR THE 13 WEEKS ENDED OCT 30 INCREASED 03 TOTAL SALES FOR THE 13 WEEKS ROSE 21 TO 216 MILLION COMPARED WITH 2116 MILLION A YEAR AGO AFTER ELIMINATING THE COST EFFECTS OF THE GRAND OPENINGS FOR ITS GB STORES WHICH VALUE BOUGHT AND CONVERTED TO ITS OWN STORES SAMESTORE SALES FOR THE FOUR WEEKS DECREASED 2 AND FOR THE THIRTEEN WEEKS INCREASED 2 VALUE CITY IS A FULLLINE OFFPRICE DEPARTMENT STORE CHAIN 9311050156 931105 SOUTHWEST AIR TRAFFIC GAINS DALLAS SOUTHWEST AIRLINES SAID ITS OCTOBER TRAFFIC ROSE 23 TO 152 BILLION REVENUE PASSENGER MILES FROM 124 BILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE OCTOBER'S LOAD FACTOR OR PERCENTAGE OF SEATS FILLED ROSE TO 68 FROM 64 A YEAR EARLIER FOR THE FIRST 10 MONTHS OF THE YEARBILLION REVENUE PASSENGER MILES UP 22 FROM LAST YEAR'S 1148 BILLION LOAD FACTOR FOR THAT PERIOD WAS 68 UP FROM 65 9311050155 931105 WHO'S NEWS NATIONAL STEEL CORP NATIONAL STEEL CORP MISHAWAKA IND EDWIN V CLARKE JR MASAYUKI HANMYO AND KEISUKE MURAKAMI WERE NAMED DIRECTORS OF THIS STEELMAKER EXPANDING THE BOARD TO EIGHT MEMBERS FROM FIVE MR CLARKE 68 YEARS OLD IS A RETIRED SENIOR EXECUTIVE VICE PRESIDENT OF WESTINGHOUSE ELECTRIC CORP MR HANMYO 52 IS A DIRECTOR OF NKK CORP NATIONAL'S MAJORITY STOCKHOLDER MR MURAKAMI 54 IS NATIONAL'S VICE PRESIDENT ADMINISTRATION 9311050154 931105 BONTON OCTOBER SALES SLID 35 YORK PA BONTON STORES INC SAID OCTOBER SALES FELL 35 TO 25 MILLION FROM 259 MILLION SAMESTORE SALES FOR THE PERIOD DECREASED 15 FOR THE THIRD QUARTER SALES ROSE 04 TO 786 MILLION FROM 783 MILLION SAMESTORE SALES DECREASED 09 BONTON WHICH SAID IT PLANS TO CLOSE ONE STORE EARLY NEXT YEAR OPERATES DEPARTMENT STORES IN SECONDARY MARKETS IN PENNSYLVANIA NEW YORK MARYLAND AND WEST VIRGINIA THE STORES CARRY BRANDNAME FASHIONS AND ACCESSORIES FOR WOMEN MEN AND CHILDREN AS WELL AS HOME FURNISHINGS AFTER THE CLOSING IT WILL HAVE 35 STORES 9311050153 931105 WHO'S NEWS QUESTECH INC QUESTECH INC FALLS CHURCH VA FORMER REP GERALDINE A FERRARO WAS ELECTED A DIRECTOR OF THIS DEFENSE INTELLIGENCE INDUSTRIAL PRODUCTS AND COMMUNICATIONS SERVICES CONCERN FILLING A VACANCY ON THE FIVE MEMBER BOARD 9311050152 931105 FOREIGN CREDITORS FORM GROUP TO STUDY FERRUZZI RESCUE PLAN SPECIAL TO THE WALL STREET JOURNAL MILAN FOREIGN BANK CREDITORS OF THE FERRUZZI CONGLOMERATE HAVE SET UP A WORKING GROUP WITH THE AIM OF FAVORING THE FERRUZZI/MONTEDISON RESTRUCTURING PROCESS AND SAID THEY NEED MORE TIME TO NEGOTIATE A COMPROMISE THE FINANCIAL COMMUNITY HAS BEEN WAITING FOR A VERDICT FROM FOREIGN CREDITORS ON A PLAN TO RESCUE THE ITALIAN AGROINDUSTRIAL COMPANY FERRUZZI FINANZIARIA SPA AND ITS MAIN CHEMICALS UNIT MONTEDISON SPA AS OF THE END OF MAY 110 FOREIGN BANKS WERE OWED A COMBINED 65 TRILLION LIRE 4 BILLION OUT OF A TOTAL OF 28 TRILLION LIRE IN LOANS OUTSTANDING THE PLAN ALREADY APPROVED BY SOME ITALIAN CREDITOR BANKS INCLUDES DEBT CONSOLIDATION AND PARTIAL WAIVERS OF INTEREST PAYMENTS IN A STATEMENT CITIBANK SAID IT TOGETHER WITH NUMEROUS OTHER INFLUENTIAL FOREIGNBANK CREDITORS OF FERRUZZI/MONEDISON HOLDS THE PROPOSED RESTRUCTURING PLAN TO BE INADEQUATE IT SAID IT FORMED A GROUP WITH BARCLAYS BANK PLC CREDIT SUISSE DEUTSCHE BANK AG AND UNION DES BANQUES SUISSES TO STUDY THE SITUATION NOTING THAT ITALIAN BANKS WORKING ON THE RESCUE PLAN HAD WORKED FOR MORE THAN FOUR MONTHS BEFORE THEIR PLAN WAS COMPLETED THE CITICORP UNIT SAID FOREIGN BANKS NEED A REASONABLE PERIOD OF TIME TO COLLECT AND ANALYZE THE NECESSARY INFORMATION IN ORDER TO FIND THE BEST WAY TO ARRIVE AT A RESTRUCTURING PLAN BY MUTUAL CONSENT FOREIGN BANKS GOT THE CURRENT PROPOSAL DRAFTED BY A GROUP OF ITALIAN BANKS LED BY MEDIOBANCA SPA ON OCT 10 AND WERE ASKED TO APPROVE IT IN FOUR DAYS SOME BANKS REACTED WITH HOSTILITY TO THE PROPOSAL AND NONE HAS YET APPROVED IT CITIBANK CONFIRMED THAT THE MAIN FOREIGN CREDITOR BANKS INTEND TO HELP SAVE THE GROUP FROM BANKRUPTCY PROCEEDINGS 9311050151 931105 INTERNATIONAL AKZO AND NOBEL DISCUSS MERGER THAT RIVALS ICI THE TWO MIGHT COMBINE THEIR PAINT BUSINESSES WITH 3 BILLION IN SALES BY MARGARET STUDER AND STEPHEN D MOORE STAFF REPORTERS OF THE WALL STREET JOURNAL DUTCH CHEMICAL GROUP AKZO NV AND NOBEL INDUSTRIES OF SWEDEN ARE DISCUSSING A MERGER THAT COULD CREATE ONE OF EUROPE'S LEADING SPECIALTY CHEMICALS COMPANIES AND SHAKE IMPERIAL CHEMICAL INDUSTRIES PLC'S GRIP ON THE GLOBAL PAINTS AND COVERINGS MARKET AKZO AND NOBEL CONFIRMED THAT THE COMPANIES WERE HOLDING TALKS WHICH OVE MATTSSON NOBEL'S MANAGING DIRECTOR DESCRIBED AS INTENSIVE AND THAT AN ANNOUNCEMENT COULD BE MADE IN A MATTER OF DAYS AN AKZO SPOKESMAN CAUTIONED HOWEVER THAT THE TALKS MAY OR MAY NOT LEAD TO THE ANNOUNCEMENT OF A MERGER BETWEEN THE TWO COMPANIES ANALYSTS SAID A COMPLETE MERGER WAS UNLIKELY NOTED ABN AMRO BANK ANALYST MAARTEN ROEST AKZO COULD BE ONLY INTERESTED IN PARTS OF NOBEL IT IS FAR FROM CERTAIN THAT THEY WILL MERGE EVERYTHING MORE LIKELY ANALYSTS SUGGESTED WAS A LINKING OF CERTAIN BUSINESSES WHERE SYNERGIES JUSTIFIED SUCH A MOVE THE KEY CONSIDERATION BEHIND ANY POSSIBLE MERGER IS FOUND IN THE COATINGS BUSINESS SAID MARTIN GLEN OF LEHMAN BROTHERS INTERNATIONAL IN LONDON THE COMBINED COATINGS BUSINESSES WOULD SURPASS THAT OF ICI A WORLD LEADER IN THAT INDUSTRY IN 1992 ICI HAD COATING SALES OF 158 BILLION 234 BILLION WHICH WAS 13 OF ITS TOTAL REVENUE OF 1206 BILLION LAST YEAR THE COATINGS DIVISION OF AKZO RECORDED SALES OF 414 BILLION GUILDERS 218 BILLION 25 OF TOTAL SALES OF 1685 BILLION GUILDERS AT NOBEL THE EQUIVALENT FIGURES WERE 67 BILLION SWEDISH KRONOR 8201 MILLION AROUND ONE THIRD OF TOTAL SALES OF 2148 BILLION SWEDISH KRONOR THIS WOULD CREATE A COATINGS BUSINESS WITH TOTAL ANNUAL SALES OF APPROXIMATELY 3 BILLION IF A MERGER OF ANY KIND DOES OCCUR ANALYSTS SAY AKZO WILL PLAY THE DOMINANT ROLE NOBEL IS IN THE HANDS OF THE BANKS WHO WANT TO BRING IT INTO A SAFE COMPANY SUGGESTED CHEMICAL INDUSTRY ANALYST WIGERT VERSTOEP OF PIERSON HELDRING & PIERSON IN AMSTERDAM THE SWEDISH GOVERNMENT INHERITED CONTROL OF NOBEL TWO YEARS AGO UNDER A FINANCIAL RESCUE OF THE CHEMICALS GROUP LED BY NORDBANKEN A BIG STATEOWNED BANK AT THAT TIME HUGE LOSSES BY A FINANCIAL UNIT HAD DRIVEN NOBEL AS WELL AS ITS CHAIRMAN AND CONTROLLING OWNER ERIK PENSER TO THE BRINK OF BANKRUPTCY THEN NORDBANKEN HAD TO BE BAILED OUT AMID SWEDEN'S BANKING CRISIS COSTING TAXPAYERS MORE THAN 20 BILLION KRONOR UNLOADING THE NOBEL STAKE VALUED AT ABOUT SIX BILLION KRONOR AT PREVAILING MARKET PRICES WOULD BE THE BIGGEST WINDFALL SO FAR IN RECOUPING THE TAXPAYERS' TAB FOR NORDBANKEN BESIDES GOVERNMENT EXPECTATIONS OF A FAT PREMIUM PRICE FROM AKZO IN ANY TAKEOVER BID FOR NOBEL BANKS ALMOST CERTAINLY WOULD DEMAND TO HAVE THEIR PREFERENCE STOCK REDEEMED AHEAD OF SCHEDULE FOR CASH SOME ANALYSTS BELIEVE ANY MERGER WILL BE IN REALITY A TAKEOVER OF NOBEL BUSINESSES BY AKZO IT WILL BE A TAKEOVER BUT NOT AN UNFRIENDLY ONE ONE ANALYST SAID AKZO'S STOCK PRICE SHOT UP ON THE NEWS AND CLOSED ON THE AMSTERDAM EXCHANGE AT 19950 GUILDERS UP 530 GUILDERS FROM A DAY EARLIER WHEN THE PRICE SURGED OVER 11 GUILDERS A SHARE ON BUOYANT EARNINGS ANALYSTS NOTE IRONICALLY THAT AKZO SOLD ITS PAPER AND PULP CHEMICALS MANUFACTURING CAPACITY TO NOBEL THIS YEAR AND NOW THE DUTCH COMPANY COULD BE GETTING THE BUSINESS BACK THE REASON AKZO SOLD ANALYSTS SAY IS THAT THE UNIT WAS TOO SMALL MERGED WITH NOBEL'S CAPACITY A PULP AND PAPER DIVISION REGAINED INTEREST FOR AKZO ANALYSTS SUGGESTED PAPER AND PULP CHEMICALS ARE AROUND 22 OF NOBEL'S BUSINESS OTHER AREAS WHERE THERE COULD BE SMALL SYNERGIES WERE BIOTECHNOLOGY AND PHARMACEUTICALS NOBEL MAKES FINE CHEMICALS FOR THE DRUG INDUSTRY AND HAS A SMALL BIOTECHNOLOGY UNIT AROUND 20 OF AKZO'S SALES COME FROM DRUGS ORGANON AN AKZO COMPANY IS ONE OF THE WORLD'S LARGEST MANUFACTURERS OF BIRTH CONTROL PILLS 9311050150 931105 CONSOLIDATED STORES SALES COLUMBUS OHIO CONSOLIDATED STORES CORP SAID RETAIL SALES INCREASED 12 TO 1041 MILLION FOR THE FIVE WEEKS ENDED SATURDAY FROM 934 MILLION A YEAR AGO FOR THE THIRD QUARTER RETAIL SALES WERE UP 13 TO 2545 MILLION SALES FOR THE NINEMONTH PERIOD ENDED SATURDAY INCREASED 14 TO 6912 MILLION FROM 609 MILLION A YEAR AGO COMPARABLESTORE SALES ROSE 15 FOR THE MONTH 4 FOR THE QUARTER AND 22 FOR THE YEAR TO DATE CONSOLIDATED IS A CLOSEOUT MERCHANDISE RETAILER AND WHOLESALER 9311050149 931105 WHO'S NEWS USLICO CORP USLICO CORP ARLINGTON VA GLENN H GETTIER JR 51 YEARS OLD EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS INSURANCE HOLDING COMPANY WAS ELECTED A DIRECTOR INCREASING THE BOARD TO 10 9311050148 931105 WHO'S NEWS INTERACTIVE NETWORK INC INTERACTIVE NETWORK INC MOUNTAIN VIEW CALIF PETER SEALEY 53 YEARS OLD FORMER SENIOR VICE PRESIDENT AND DIRECTOR OF GLOBAL MARKETING FOR COCACOLA CO HAS BEEN NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS INTERACTIVE TELEVISION FIRM EFFECTIVE JAN 3 DAVID B LOCKTON 56 PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL CONTINUE AS CHIEF EXECUTIVE AND WILL SUCCEED HIS COUSIN JOHN D LOCKTON ALSO 56 AS BOARD CHAIRMAN JOHN D LOCKTON WILL CONTINUE AS A DIRECTOR 9311050147 931105 INTERNATIONAL BEIJING IS CONSIDERING THE ABOLITION OF OFFICIAL EXCHANGE RATE NEXT YEAR BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG BEIJING IS CONSIDERING THE ABOLITION OF ITS OFFICIAL EXCHANGE RATE NEXT YEAR AMID BOLD CALLS FOR FASTER ECONOMIC REFORM THE CHINESE GOVERNMENT ALREADY HAS SAID IT AIMS TO MAKE ITS CURRENCY THE YUAN CONVERTIBLE WITHIN FIVE YEARS BUT A GROWING NUMBER OF CHINESE OFFICIALS AND ACADEMICS BELIEVE BEIJING SHOULD SPEED UP THE TIMETABLE BY SCRAPPING THE OFFICIAL RATE AND MAKING THE CURRENCY CONVERTIBLE FOR THE PURPOSES OF MERCHANDISE TRADE BEFORE THE END OF NEXT YEAR THERE IS EVEN SOME TALK IN OFFICIAL CIRCLES OF A BIG BANG APPROACH IN WHICH CHINA WOULD LET THE CURRENCY FLOAT AND REMOVE ALL RESTRICTIONS ON CAPITAL FLOWS OVERNIGHT MOMENTUM FOR FASTERPACED EXCHANGERATE REFORM IS GATHERING STRENGTH SAYS A SENIOR RESEARCHER WITH A BEIJING FINANCIAL INSTITUTE WHO PARTICIPATES IN SOME OF THE POLICY DISCUSSIONS THE PLENUM MEETING OF THE CHINESE COMMUNIST PARTY'S RULING CENTRAL COMMITTEE THIS MONTH SHOULD PROVIDE CLUES ABOUT HOW RADICAL THE REFORM WILL BE THE MEETING ALSO IS EXPECTED TO APPROVE OTHER MAJOR CHANGES INCLUDING BANKING TAX AND THE SHARING OF REVENUE BETWEEN THE CENTRAL AND PROVINCIAL GOVERNMENTS AS THE MEETING APPROACHES PROPONENTS OF SHOCK THERAPY FOR CHINA APPEAR TO BE GAINING GROUND APPARENTLY FRUSTRATED BY THE PIECEMEAL ECONOMIC REFORM ADOPTED OVER THE PAST 15 YEARS MORE OFFICIALS SEEM TO WANT SPEEDY CHANGE SOME LEADERS IN BEIJING HAVE PROBABLY LOST THEIR PATIENCE OVER THE GRADUAL PROCESS OF PIECEMEAL REFORMS SAYS TSANG SHUKI A SENIOR LECTURER IN ECONOMICS AT HONG KONG BAPTIST COLLEGE IT'S CLEAR THAT MORE PEOPLE ARE THINKING THAT INSTEAD OF CONTINUING TO MUDDLE THROUGH CHINA SHOULD TRY SOMETHING MORE DRASTIC AT PRESENT CHINA MAINTAINS BOTH AN OFFICIAL EXCHANGE RATE FOR THE YUAN AND A SYSTEM OF SOCALLED SWAP MARKETS AT THE 100 OR SO SWAP MARKETS CHINESE IMPORTERS AND EXPORTERS AND SINOFOREIGN JOINT VENTURES ARE AUTHORIZED TO BUY AND SELL CURRENCY AT LEVELS REFLECTING SUPPLY AND DEMAND ALTHOUGH CHINA'S CENTRAL BANK THE PEOPLE'S BANK OF CHINA FREQUENTLY INTERVENES TO STABILIZE THE RATE TO PREPARE FOR WIDER USE OF THE SWAP MARKETS CHINA PLANS TO SET UP AN INTEGRATED NATIONAL SWAP CENTER IN SHANGHAI DURING 1994'S FIRST HALF ACCORDING TO THURSDAY'S EDITION OF WEN WEI PO A BEIJINGCONTROLLED NEWSPAPER IN HONG KONG THE OFFICIAL RATE FOR THE YUAN IS CURRENTLY ABOUT 57 TO THE US DOLLAR ON THE SWAP MARKETS THE YUAN HAS STABILIZED RECENTLY AT ABOUT 87 TO THE DOLLAR UP FROM A LOW OF ABOUT 11 IN JUNE THE OFFICIAL RATE AND THE SWAP RATE EACH ACCOUNT FOR ROUGHLY HALF OF FOREIGNEXCHANGE TRANSACTIONS ALIGNING THE TWO RATES WOULD HELP SOME FOREIGN INVESTORS WHO SUFFER FROM THE DIVERGENCE BETWEEN THE OFFICIAL AND SWAPMARKET RATES ABOLISHING THE OFFICIAL RATE ALSO WOULD HELP FOREIGN TOURISTS IN CHINA AS WELL AS CHINESE EXPORTERS EXPORTERS ARE NOW REQUIRED TO SELL ABOUT 20 OF THEIR FOREIGNEXCHANGE EARNINGS TO THE GOVERNMENT AT THE OFFICIAL RATE IF THE OFFICIAL RATE IS ABOLISHED THE PEOPLE'S BANK COULD CONTINUE TO INTERVENE TO PREVENT WILD FLUCTUATIONS AND MAINTAIN AN UNOFFICIAL PEG RATE ECONOMISTS SAY FOR THAT REASON SAYS DIANE YOWELL AN ECONOMIST AT HONGKONG & SHANGHAI BANKING CORP UNIFICATION OF THE MULTIPLE EXCHANGE RATES IS AN EASY FIRST STEP THAT BEIJING PROBABLY THINKS THAT IT CAN AFFORD A BIGGER STEP UNDER CONSIDERATION IS A MOVE TOWARD CONVERTIBILITY CURRENTLY EXPORTERS CAN RETAIN SOME OF THEIR FOREIGNEXCHANGE EARNINGS IN THE FORM OF QUOTAS GIVING THEM THE RIGHT TO BUY FOREIGN CURRENCY AT THE OFFICIAL RATE FROM THE BANK OF CHINA THEY ALSO CAN SELL THEIR QUOTAS AT THE SWAP CENTERS TO COMPANIES THAT NEED FOREIGN EXCHANGE TO PAY FOR IMPORTS SHOULD CHINA DECIDE TO MAKE THE CURRENCY CONVERTIBLE IN TERMS OF MERCHANDISE TRADE EXPORTERS WOULD BE ALLOWED TO RETAIN 100 OF THEIR FOREIGNEXCHANGE EARNINGS IN THE FORM OF CASH AND COULD BUY AND SELL FOREIGN CURRENCY AT WILL AT THE SWAP CENTERS THE SENIOR RESEARCHER IN BEIJING CAUTIONS THAT RAPID CHANGE COULD INCREASE THE CENTRAL GOVERNMENT'S ALREADY WORRISOME BUDGET DEFICIT THAT'S BECAUSE THE GOVERNMENT WHICH CURRENTLY ACQUIRES MUCH OF ITS FOREIGN EXCHANGE FROM EXPORTERS AT THE OFFICIAL RATE WOULD BE FORCED TO PAY MORE YUAN TO BUY THE SAME AMOUNT OF FOREIGN CURRENCY MOREOVER THE CENTRAL BANK MIGHT FIND IT MORE DIFFICULT TO STABILIZE EXCHANGE RATES OR CONTROL BALANCEOFPAYMENTS DEFICITS 9311050146 931105 PROPERTY TRUST OF AMERICA SANTA FE NM PROPERTY TRUST OF AMERICA SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 200 MILLION IN CUMULATIVE CONVERTIBLE SERIES A PREFERRED SHARES OF BENEFICIAL INTEREST WITH A LIQUIDATION PREFERENCE OF 25 A SHARE THE UNDERWRITERS ARE GOLDMAN SACHS & CO AG EDWARDS INC AND KIDDER PEABODY & CO THE PROCEEDS WILL BE USED TO ACQUIRE PROPERTIES THE BALANCE IF ANY WILL BE USED TO REPAY THE REALESTATE INVESTMENT TRUST'S REVOLVING CREDIT LINE 9311050145 931105 DERLAN TO SELL STAKE IN CONCERN TORONTO DERLAN INDUSTRIES LTD SAID IT PLANS TO SELL IN A PUBLIC OFFERING ITS 825 STAKE IN HALLMARK TECHNOLOGIES INC A WINDSOR ONTARIO COMPANY THAT IS PLANNING AN INITIAL PUBLIC OFFERING OF SHARES DERLAN A MAKER OF PRODUCTS FOR THE AUTOMOTIVE AND AEROSPACE INDUSTRIES SAID IT WILL SELL ITS HALLMARK STAKE TO REDUCE DEBT A DERLAN OFFICIAL DECLINED TO SAY HOW MUCH THE COMPANY EXPECTS TO RAISE FROM THE SALE THE REMAINING STAKE IN HALLMARK WHICH MAKES STEEL MOLDS USED IN THE AUTO INDUSTRY IS HELD BY HALLMARK'S MANAGEMENT 9311050144 931105 CATELLUS PRIVATE PLACEMENT CATELLUS DEVELOPMENT CORP A SAN FRANCISCO REAL ESTATE COMPANY SAID IT HAS COMPLETED THE PRIVATE PLACEMENT OF THREE MILLION SHARES OF CONVERTIBLE PREFERRED STOCK FOR 150 MILLION 9311050143 931105 HONGKONG TELECOM FISCALHALF RESULTS OUTPACED FORECASTS BY JAMES AREDDY SPECIAL TO THE WALL STREET JOURNAL HONG KONG HONG KONG TELECOMMUNICATIONS LTD SAID NET INCOME IN ITS FISCAL FIRST HALF OUTPERFORMED MOST ANALYSTS' ESTIMATES AND IT PREDICTED SIMILAR RESULTS FOR THE FULL FISCAL YEAR I AM CONFIDENT THE SORT OF PERFORMANCE WE'VE ACHIEVED IN THE FIRST HALF IS THE SORT OF LEVEL OF ACHIEVEMENT WE CAN EXPECT FOR THE SECOND HALF SAID MICHAEL GALE CHIEF EXECUTIVE YESTERDAY AFTER ANNOUNCING FIRSTHALF FIGURES THE COMPANY WHICH IS HONG KONG'S MONOPOLY PROVIDER OF LOCAL AND LONGDISTANCE TELEPHONE SERVICE SAID NET INCOME ROSE 15 TO 365 BILLION HONG KONG DOLLARS US4724 MILLION IN THE HALF WHICH ENDED SEPT 30 HONG KONG TELECOM ALSO BOOSTED ITS INTERIM DIVIDEND BY 15 TO 234 HONG KONG CENTS THREE US CENTS A SHARE EARNINGS PER SHARE ROSE 15 TO 328 HONG KONG CENTS A SHARE ANALYSTS ROLLED OUT CONSERVATIVE ESTIMATES IN JULY WHEN HONG KONG TELECOM SLASHED PRICES ON INTERNATIONAL CALLS ONE ANALYST SAID HIS PEERS WERE NEARLY UNIFORM IN OVERESTIMATING THE NEGATIVE EFFECT OF THE RATE CUT I'M SURE THE RATE REDUCTION HAD A SIGNIFICANT IMPACT ON EXPECTATIONS SAID FRED BOWERS AN ANALYST AT NORMURA RESEARCH INSTITUTE HONG KONG LTD HOWEVER HE SAID THE STRENGTH OF BUSINESS POWERED THEM THROUGH THAT KIRK SWEENEY RESEARCH DIRECTOR AT LEHMAN BROTHERS ASIA LTD PREDICTED THAT THE RESULTS WILL PROMPT ANALYSTS TO REVISE THEIR EXPECTATIONS FOR THE FULL YEAR WHICH ENDS IN MARCH THE VERY POSITIVE POINT WAS THAT MANAGEMENT CLAIMED THAT IT COULD ACHIEVE 15 EARNINGS GROWTH IN THE NEAR TERM MR SWEENEY SAID I THINK YOU'LL SEE PEOPLE RAISE THEIR EXPECTATIONS FOR THE BALANCE OF THE YEAR FOLLOWING THE FINE RESULT FOR THE HALF MR BOWERS SAID HE IS LEANING TOWARD THE TOP END OF HIS PREDICTION THAT THE COMPANY WILL EARN BETWEEN HK725 BILLION AND HK73 BILLION FOR THE FISCAL YEAR WHILE ANALYSTS EXPECT EARNINGS TO REMAIN STRONG IN HONG KONG TELECOM'S TRADITIONAL BUSINESSES COMPETITION LOOMS THE FIRST MAJOR OBSTACLE ARRIVES JULY 1994 WHEN THE COMPANY LOSES ITS MONOPOLY ON LOCAL FIXEDLINE TELEPHONE SERVICE MR GALE THE COMPANY'S CHIEF EXECUTIVE SAID SEVEN COMPANIES HAVE APPLIED TO THE HONG KONG GOVERNMENT FOR A LICENSE TO OPERATE FIXEDLINE LOCAL SERVICES ALONGSIDE HONG KONG TELECOM HE ADDED THAT HE EXPECTS THE GOVERNMENT TO AWARD ONE OR TWO SUCH LICENSES BY THE END OF THE YEAR 9311050142 931105 TECHNOLOGY & HEALTH NYNEX TO SELL MOST OF AGS TAKE A CHARGE BY LESLIE CAULEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NYNEX CORP SAID IT WILL TAKE A FOURTHQUARTER CHARGE OF AS MUCH AS 275 MILLION TO END AN ILLFATED FORAY INTO INFORMATION SERVICES AND SELL MOST OF ITS AGS COMPUTER INC SUBSIDIARY NYNEX IS SELLING ROUGHLY TWOTHIRDS OF THE AGS UNIT TO KEANE INC OF BOSTON FOR LESS THAN 100 MILLION ACCORDING TO PEOPLE FAMILIAR WITH THE TERMS YET THE BABY BELL HAD PAID ABOUT 300 MILLION FOR AGS FIVE YEARS AGO WHEN IT HOPED REGULATORY RESTRICTIONS WOULD FALL RAPIDLY AND ALLOW IT TO WRAP THE COMPUTER SERVICES AND CONSULTING BUSINESS INTO ITS MAIN OPERATIONS THAT DIDN'T HAPPEN INDEED NYNEX WASN'T EVEN ALLOWED IN MOST CASES TO BECOME A CUSTOMER OF THE COMPANY IT HAD PURCHASED WE DECIDED THAT AS WE MOVE FORWARD WE SHOULD STICK TO OUR KNITTING SAID FREDERIC SALERNO VICE CHAIRMAN OF NYNEX WHICH PROVISERVICE IN THE INTENSELY COMPETITIVE NORTHEAST BECAUSE FEDERAL RULES BLOCKED NYNEX FROM INTEGRATING AGS INTO ITS OPERATIONS WE DIDN'T ADD A LOT OF VALUE IN MANAGING THE UNIT HE ADDED FOR THE PAST YEAR NYNEX HAS BEEN TRYING TO SHED MANY OF THE BUSINESSES INTO WHICH ONLY A FEW YEARS EARLIER IT HAD HOPED TO DIVERSIFY TAKING AIM AT THE COMING INTERACTIVE ERA IT AGREED LAST MONTH TO INVEST 12 BILLION IN VIACOM INC THE CABLE AND ENTERTAINMENT GIANT THAT IS IN A FIGHT TO ACQUIRE PARAMOUNT COMMUNICATIONS INC THE SALE TO KEANE WILL FORCE NYNEX TO TAKE A FOURTHQUARTER CHARGE OF 250 MILLION TO 275 MILLION THE COMPANY SAID IN THE YEARAGO PERIOD THE BABY BELL EARNED 131 BILLION OR 640 A SHARE ON REVENUE OF 1316 BILLION THE CHARGE WOULD HAVE BEEN EVEN HIGHER BUT WAS OFFSET SOMEWHAT BY A NET GAIN OF ABOUT 50 MILLION ON THE PREVIOUSLY ANNOUNCED SALE OF ANOTHER SOFTWARE UNIT BIS GROUP LTD THE PURCHASE BY KEANE WHICH PROVIDES CUSTOMIZED SOFTWARE TO LARGE BUSINESSES WILL LEAVE NYNEX WITH ABOUT A THIRD OF ITS AGS BUSINESSES THE OPERATIONS ACQUIRED BY KEANE GENERATED ABOUT 160 MILLION IN REVENUE LAST YEAR JOHN KEANE KEANE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE FIRST APPROACHED NYNEX IN THE SUMMER ABOUT SELLING ITS AGS BUSINESSES AND FOUND THE COMPANY RECEPTIVE TO THE IDEA IT WASN'T A HARD SELL HE SAID THE SALE SUBJECT TO FINAL TERMS AND APPROVAL BY FEDERAL REGULATORS AND THE BOARDS OF BOTH COMPANIES IS EXPECTED TO CLOSE BY THE END OF THE YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NYNEX SHARES FELL 1375 TO 41 9311050141 931105 CANADIAN STEEL OUTPUT FALLS OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 258611 METRIC TONS IN THE WEEK ENDED SATURDAY A 66 DECLINE FROM 276966 TONS IN THE PREVIOUS WEEK AND A 10 DECLINE FROM 287983 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON EQUALS 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 11869970 TONS A 4 INCREASE FROM 11415041 TONS A YEAR EARLIER 9311050139 931105 BUSINESS BRIEFS US LONG DISTANCE CORP ACQUIRED STS TELECOMMUNICATIONS INC ABILENE TEXAS A CLOSELY HELD LONGDISTANCE SERVICE BUSINESS FOR 150000 COMMON SHARES AMERICAN FILTRONA CORP A MAKER OF FIBER PLASTICS AND FILTRATION PRODUCTS PLANS TO DIVEST ITSELF OF ITS DOLLINGER CORP UNIT A MAKER OF INDUSTRIAL FILTRATION PRODUCTS JOSTENS INC A MAKER OF PRODUCTS USED BY SCHOOLS RECEIVED A PROPOSAL FROM THE CURRENT MANAGEMENT TEAM OF ITS SPORTSWEAR UNIT JOSTENS SPORTSWEAR TO ACQUIRE THE BUSINESS TERMS WEREN'T DISCLOSED TECUMSEH PRODUCTS CO WILL PURCHASE THE COMPRESSORMANUFACTURING EQUIPMENT AT GE APPLIANCES' COLUMBIA TENN PLANT FOR ABOUT 80 MILLION GE APPLIANCES IS A UNIT OF GENERAL ELECTRIC CO BUTLER MANUFACTURING CO WILL SELL ITS WALKER ELECTRICAL PRODUCTS DIVISION PARKERSBURG WVA TO WIREMOLD CO HARTFORD CONN A CLOSELY HELD COMPANY FOR 35 MILLION THE SALE IS EXPECTED TO CLOSE BEFORE THE END OF THE YEAR 9311050138 931105 INTERNATIONAL SWISS JOBLESS RATE IS STEADY BERN SWITZERLAND SWITZERLAND'S UNEMPLOYMENT RATE REMAINED UNCHANGED IN OCTOBER AT 48 OF THE WORK FORCE THE GOVERNMENT ANNOUNCED IN OCTOBER 1992 THE RATE WAS 35 LAST MONTH THE GOVERNMENT COUNTED 173528 PEOPLE WITHOUT JOBS OR 1459 MORE THAN IN SEPTEMBER 9311050137 931105 WHO'S NEWS WASHINGTON SCIENTIFIC INDUSTRIES INC WASHINGTON SCIENTIFIC INDUSTRIES INC MINNEAPOLIS MICHAEL J PUDIL 45 FORMER VICE PRESIDENT AND GENERAL MANAGER OF REMMELE ENGINEERING'S PRODUCTION DIVISION WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PROVIDER OF HIGHPRECISION MANUFACTURING SERVICES HE SUCCEEDS CLIFFORD W DINSMORE WHO RESIGNED IN JULY TO PURSUE OTHER INTERESTS 9311050135 931105 TRANSCISCO INDUSTRIES INC SAN FRANCISCO TRANSCISCO INDUSTRIES INC SAID IT EMERGED FROM PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF FEDERAL BANKRUPTCY LAWS FOLLOWING COURT APPROVAL OF A REORGANIZATION PLAN UNDER TERMS OF THE PLAN THE RAILCAR AND EQUIPMENT LEASING CONCERN IS TO EXCHANGE 3 MILLION OF A 5 MILLION NOTE FROM PLM INTERNATIONAL INC AND 34 MILLION PLM SHARES FOR 163 MILLION OF TRANSCISCO'S SUBORDINATED DEBT CURRENTLY IN DEFAULT 9311050134 931105 REVIEW & OUTLOOK EDITORIAL ASIDES AND ELSEWHERE OTHER LOCAL RESULTS AROUND THE COUNTRY SHOWED SIMILAR RESPECT FOR TRADITIONAL APPROACHES BOND ISSUES FOR PUBLIC INFRASTRUCTURE MET WITH GENERAL APPROVAL INDEED THE SPENDING ON THIS KIND OF PROJECT NEVER HAS LET UP DESPITE THE CANARDS TO THE CONTRARY BUT MORE EXOTIC KINDS OF GOVERNMENT UNDERTAKINGS INCLUDING INVESTMENT IN FAVORED INDUSTRIAL DEVELOPMENT WERE SHOT DOWN IN TEXAS AND NORTH CAROLINA AND HOUSTON WHICH HAS PROSPERED WITHOUT THE ENTANGLEMENT OF A ZONING ORDINANCE CHOSE TO REMAIN UNBOUND MESSAGES ABOUND 9311050133 931105 INDONESIA ISSUES RULES ON ALLOCATION OF NEW SHARES BY RICHARD BORSUK STAFF REPORTER OF THE WALL STREET JOURNAL JAKARTA INDONESIA HAS ISSUED RULES ON HOW UNDERWRITERS SHOULD ALLOCATE NEWLY OFFERED SHARES RESPONDING TO COMPLAINTS ABOUT THE DISTRIBUTION OF SOME RECENT HEAVILY OVERSUBSCRIBED ISSUES REGULATORS ALSO SAID THAT UNOFFICIAL TRADING IN SHARES BEFORE THEY ARE FORMALLY LISTED IS ILLEGAL BROKERS AND ASPIRING BUYERS HAVE COMPLAINED THAT IN SOME POPULAR SHARE OFFERINGS RECENTLY UNDERWRITERS HAVEN'T ALLOCATED SHARES FAIRLY GIVING BIG BLOCKS TO SOME APPLICANTS AND VERY FEW TO OTHERS BACELIUS RURU CHAIRMAN OF BAPEPAM INDONESIA'S CAPITALMARKET SUPERVISORY AGENCY SAID THE NEW RULES ARE DESIGNED TO MAKE SHAREALLOCATION MORE EQUITABLE UNDER THE RULES UNDERWRITERS CAN'T MAKE ANY FIXED ALLOCATIONS OF SHARES OF AN OFFERING TO APPLICANTS EXCEPT 10 THAT CAN BE RESERVED FOR EMPLOYEES OF THE ISSUING COMPANY IN CASES WHERE AN OFFERING IS SO HEAVILY OVERSUBSCRIBED THAT NOT EVERY APPLICANT CAN RECEIVE EVEN A PROPORTION OF THE NUMBER OF SHARES SOUGHT UNDERWRITERS MUST USE A LOTTERY TO DECIDE WHO WILL GET STOCK BAPEPAM ALSO SAID NO UNOFFICIAL OR GRAYMARKET TRADING IS ALLOWED BEFORE A COMPANY'S SHARES ARE PUBLICLY LISTED IN A RECENT 295 MILLION ISSUE BY PT BARITO PACIFIC TIMBER WHICH WAS HEAVILY OVERSUBSCRIBED ACTIVE UNOFFICIAL TRADING BEFORE THE SHARES WERE ALLOCATED PUSHED UP THE SHARE PRICE AND LATER SPARKED COMPLAINTS FROM BROKERS WHO COULDN'T GET THE NUMBER OF SHARES THEY HAD EXPECTED BARITO'S SHARE PRICE JUMPED 53 ON THE FIRST DAY OF OFFICIAL TRADING LAST MONTH THE NEW RULES MAY REDUCE THE USE OF WHAT INDONESIANS CALL JOCKEYS PEOPLE PAID TO STAND IN LINE TO APPLY FOR SHARES ON BEHALF OF OTHERS THE PRACTICE AROSE BECAUSE OF RULES INTENDED TO FAVOR SMALL INVESTORS APPLICANTS FOR 500 SHARES THE SMALLEST LOT HAD A CHANCE OF RECEIVING ALL THEY SOUGHT WHILE THE NEW RULES STILL TRY TO SEE THAT SMALL APPLICANTS GET SHARES THE LOTTERY WILL ENSURE A MORE RANDOM DISTRIBUTION FOR OVERSUBSCRIBED ISSUES THE THEORY BEHIND THE NEW RULES IS TO STOP FIXED ALLOCATIONS BY UNDERWRITERS STOP UNOFFICIAL TRADING AND STOP USE OF JOCKEYS A BAPEPAM OFFICIAL SAID BROKERS SAID THE NEW RULES SHOULD LIMIT SUCH PRACTICES BUT LIKELY WON'T ELIMINATE THEM IT'S VERY GOOD IF FIXED ALLOCATIONS ARE ENDED ONE BROKER SAID THAT WILL REDUCE COMPLAINTS ABOUT TOO FEW PEOPLE GETTING TOO MANY SHARES ON THE SAME DAY THE RULES WERE ANNOUNCED THE OFFERING PERIOD OPENED FOR PT ANWAR SIERAD A CHICKEN BREEDER THE OFFERING WHICH WON'T COME UNDER THE NEW RULES DREW A LARGE CROWD OF APPLICANTS 9311050132 931105 CENCALL TO BUY 3 BUSINESSES DENVER CENCALL COMMUNICATIONS CORP SAID IT AGREED TO ACQUIRE THE BUSINESS OF THREE CLOSELY HELD SPECIALIZED MOBILE RADIO COMPANIES IN THE ST LOUIS AREA THE ASSETS INCLUDE FEDERAL COMMUNICATIONS COMMISSION LICENSES AND THE EQUIPMENT USED TO SERVICE MOBILERADIO CUSTOMERS CENCALL WILL PAY 30 MILLION IN STOCK AND CASH FOR THE BUSINESSES THE COMPANIES THAT WILL BE ACQUIRED ARE ST LOUIS ELECTRONICS A&E ELECTRONICS AND WARNER COMMUNICATIONS WHICH ISN'T AFFILIATED WITH TIME WARNER INC CENCALL OPERATES WIRELESS COMMUNICATIONS SERVICES IN 17 STATES 9311050131 931105 KAUFMAN & BROAD TO START OFFER LOS ANGELES KAUFMAN & BROAD HOME CORP SAID IT WILL BEGIN ON NOV 8 AN OFFER TO BUY ALL 5123000 SHARES OF ITS SPECIAL COMMON STOCK OUTSTANDING AT 19 APIECE THE OFFER HANDLED BY MERRILL LYNCH & CO IS SET TO EXPIRE DEC 7 THE HOMEBUILDER SAID SUNAMERICA INC'S SUN LIFE INSURANCE CO OF AMERICA UNIT PLANS TO SELL ALL 237000 WARRANTS TO BUY SPECIAL COMMON STOCK AT THE OFFERING PRICE MINUS THE WARRANTS' EXERCISE PRICE OF 696 EACH KAUFMAN & BROAD SAID IT WILL USE CASH AND A REVOLVING CREDIT LINE TO BUY BACK THE SHARES AND WARRANTS 9311050130 931105 EUROPEAN BANK PROFIT SOURCE IS SEEN SHIFTING EARNINGS WILL RELY MORE ON TRADING AND SAVINGS FROM OUTSOURCING TASKS BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EUROPEAN BANKS ARE EXPECTED TO INCREASINGLY RELY ON PROFITS FROM SECURITIES AND CURRENCY TRADING AS WELL AS COST SAVINGS FROM CONTRACTING OUT ACCOUNTING AND DATAPROCESSING TASKS A NEW STUDY SAYS INTENSIFYING COMPETITION WEAK BALANCE SHEETS PROFIT PRESSURES AND NEW CAPITALADEQUACY REQUIREMENTS ARE FORCING MANY BANKS TO MOVE AWAY FROM TRADITIONAL MONEY TRANSMISSION LENDING AND DEPOSITTAKING THE REPORT PUBLISHED BY THE ARTHUR ANDERSEN ACCOUNTING AND CONSULTING GROUP ASSERTS INSTEAD MUCH LIKE BIG NEW YORK BANKS EUROPEAN INSTITUTIONS ARE MOVING INCREASINGLY TOWARD THE TRADING OF CASH SECURITIES AND DERIVATIVES PRODUCTS AS A SOURCE OF PROFITS THE STUDY SAYS BUT UNCERTAINTY OVER WHETHER THEY WILL BE ABLE TO MANAGE THE COMPLEX RISKS INHERENT IN THESE MARKETS BRINGS A NEW ELEMENT OF INSTABILITY TO A SECTOR ALREADY POUNDED BY RECESSION AND THE EFFECTS OF COMPETITION IN TRADITIONAL BUSINESS AREAS BASED ON A SURVEY OF TOP EXECUTIVES AT 400 LEADING BANKS AND CAPITAL MARKETS ORGANIZATIONS ACROSS EUROPE THE REPORT CLAIMS TO BE THE MOST COMPREHENSIVE STUDY TO DATE OF PRACTITIONERS' EXPECTATIONS FOR THE BANKING SECTOR THE SURVEY WAS CONDUCTED DURING LATE 1992 AND EARLY 1993 BY OFFICES OF THE ANDERSEN WORLDWIDE ORGANIZATION IN 21 EUROPEAN COUNTRIES SUBSEQUENTLY 50 INDUSTRY EXPERTS PARTICIPATED IN A WORKSHOP TO ANALYZE THE SURVEY'S RESULTS AND CONSIDER THEIR IMPLICATIONS ONE RESULT OF CHANGING PATTERNS THE REPORT PREDICTS IS LIKELY TO BE CONTINUED CONSOLIDATION THROUGH MERGERS AND ACQUISITIONS AT THE SAME TIME HOWEVER NEW TECHNOLOGIES ARE GOING TO FACILITATE A PROCESS OF FRAGMENTATION AS A HOST OF NONBANK PLAYERS TAKE ADVANTAGE OF EASIER ACCESS INTO THE BANKS' TRADITIONAL PLAYGROUND WE'RE DEFINITELY GOING TO SEE CONSOLIDATION BUT ALSO NEW ENTRANTS SAID DAVID ANDREWS ANDERSEN CONSULTING'S HEAD OF FINANCIAL SERVICES IN BRITAIN IN THE SHORT TERM WE ARE ENTERING A MORE DYNAMIC MARKET THE ENTRY OF NEW NICHE PLAYERS INTO FINANCIAL MARKETS WILL PROBABLY HAVE LITTLE MORE THAN A MARGINAL EFFECT ON THE EARNINGS OF LARGE ESTABLISHED FIRMS BUT IT COULD COST EXISTING SMALLER PLAYERS DEARLY THE REPORT SAYS AGAINST THIS BACKGROUND IT ASSERTS THE KEY TO SURVIVAL IS LIKELY TO BE BANKS' ABILITY TO POSITION THEMSELVES IN TERMS OF SIZE AND STRUCTURE WHILE AT THE SAME TIME SEGMENTING THEIR CUSTOMER BASE TO PROVIDE PRODUCTS TAILORED FOR SPECIFIC GROUPS NOT SURPRISINGLY THE REPORT CONTAINS THE USUAL PREDICTIONS ABOUT THE NEED FOR SLIMMING DOWN WORK FORCES AND REALLOCATING EMPLOYEES TO AREAS WHERE THEY CAN PRODUCE MORE VALUE IN A CHANGING ENVIRONMENT IT DWELLS ON CHANGING FINANCING PATTERNS AND THE SHIFT AWAY FROM BANKS AS INTERMEDIARIES BETWEEN BORROWERS AND INVESTORS IT ALSO PREDICTS THAT BANKS WILL INCREASINGLY MOVE TO PERFORMANCERELATED PAY MECHANISMS AS A WAY OF MOTIVATING STAFF AND FORECASTS A SHARP INCREASE IN THE NUMBER OF BANKING TRANSACTIONS DONE BY TELEPHONE TO 40 BY THE YEAR 2000 FROM AROUND 1 TODAY POTENTIALLY ITS MOST ILLUMINATING FINDINGS HOWEVER ARE THOSE RELATING TO OUTSOURCING OR THE TRANSFER OF ROUTINE TASKS TO OUTSIDE SUBCONTRACTORS AND TO THE FUTURE ROLE OF CURRENCY AND SECURITIES TRADING AS A SOURCE OF EARNINGS MIRRORING A TREND IN MANUFACTURING INDUSTRY MORE AND MORE BANKS SAID THEY EXPECT TO INCREASE SIGNIFICANTLY THE TYPE AND EXTENT OF OPERATIONS SUBCONTRACTED TO OUTSIDERS ALONG WITH THE TRANSFER OF OPERATIONS SUCH AS DATAPROCESSING ACCOUNTING AND COMPUTER SYSTEMS MAINTENANCE THIS PROCESS IS ALSO LIKELY TO PROMOTE THE DEVELOPMENT OF SOCALLED WHITE LABEL PRODUCTS IN SUCH AREAS AS MORTGAGE SERVICING WHERE A CENTRAL OPERATOR PROVIDES SERVICES FOR A RANGE OF BANKING CLIENTS ONE EXAMPLE ALREADY IN OPERATION IN BRITAIN IS BARCLAYS BANK'S CENTRALIZED MORTGAGESERVICING UNIT IN LEEDS WHICH PROVIDES SERVICES UNDER CONTRACT TO A NUMBER OF OUTSIDE CLIENTS OUTSOURCING IS LIKELY BOTH TO BENEFIT BANKS THAT GET RID OF INTERNAL FUNCTIONS BY CUTTING COSTS AND GIVING MANAGERS MORE TIME TO CONCENTRATE ON OTHER TASKS AND TO ASSIST THE PROVIDERS OF SUCH SERVICES BY ENABLING THEM TO BUILD UP SIGNIFICANT NEW PROFIT CENTERS IN PARALLEL HOWEVER PANELISTS FORECAST THAT THEIR BANKS' PROFITS WILL COME INCREASINGLY FROM TRADING ACTIVITIES AND PROPRIETARY TRADING RATHER THAN FROM LENDING THEIR MAIN TRADITIONAL SOURCE OF EARNINGS SOME BANKS SURVEYED ALREADY MAKE AS MUCH AS 35 OF EARNINGS OUT OF TRADING OVER THE LONGER TERM MANY ARE AIMING TO RAISE SUCH PROFITS TO THE SAME LEVEL AS THOSE EARNED FROM LENDING THE REPORT SAID 9311050129 931105 INTERNATIONAL BT'S PRETAX NET INCREASED BY 72 IN LATEST PERIOD BRITISH TELECOMMUNICATIONS RESULTS BEAT FORECASTS A WARNINGH ON DIVIDENDS BY ELIZABETH MAIN SPECIAL TO THE WALL STREET JOURNAL LONDON BRITISH TELECOMMUNICATIONS PLC REPORTED HIGHERTHANEXPECTED PRETAX PROFIT FOR THE FISCAL SECOND QUARTER BUT CAUTIONED THAT FUTURE DIVIDEND GROWTH MIGHT NOT KEEP UP ITS RECENT BRISK PACE BT'S SHARES FELL EIGHT PENCE TO 468 PENCE ON THE LONDON STOCK EXCHANGE PARTLY DUE TO PROFITTAKING AFTER A BIG RUNUP IN THE STOCK AHEAD OF THE EARNINGS REPORT BT SAID PRETAX PROFIT ROSE 72 TO 743 MILLION 110 BILLION IN THE SECOND QUARTER ENDED SEPT 30 TOPPING EXPECTATIONS THAT PROFIT WOULD BE BETWEEN 703 MILLION AND 740 MILLION FOR THE SIX MONTHS PROFIT CLIMBED 46 TO 150 BILLION ALLISTER MALCOLMSON A BROKER AT BARCLAYS DE ZOETE WEDD SAID THE LATEST PERIOD INCLUDED A CHARGE FOR LAYOFF COSTS OF 97 MILLION HIGHER THAN THE EXPECTED 80 MILLION HE SAID THAT MAKES THE PROFIT INCREASE LOOK EVEN BETTER BUT IAIN VALLANCE BT'S CHAIRMAN SAID THE RAW FIGURES PAINT A ROSIER PICTURE THAN IS FAIR AND NEED TO BE INTERPRETED WITH CARE AFTER ACCOUNTING FOR LAST YEAR'S LAYOFF COSTS OF 386 MILLION AND OTHER NONRECURRING CHARGES PRETAX PROFIT ROSE JUST 25 IN THE QUARTER PUSHING UP EARNINGS PER SHARE JUST 03 HE SAID THE RESULTS THEMSELVES SHOW SOME ENCOURAGING SIGNS MR VALLANCE TOLD A MEDIA BRIEFING DEMAND FOR OUR SERVICES HAS BEEN STRONGER IN THE HALF YEAR AND ESPECIALLY SO IN THE SECOND QUARTER IN FACT DEMAND WAS STRONGER THAN MANY HAD EXPECTED REVENUE ROSE 52 TO 343 BILLION IN THE SECOND QUARTER REVENUE FROM DOMESTIC TELEPHONE CALLS CLIMBED 35 TO 131 BILLION WHILE INTERNATIONALCALL REVENUE JUMPED 93 TO 496 MILLION ROBERT MORRIS GOLDMAN SACHS & CO'S LONDONBASED TELECOMMUNICATIONS ANALYST SAID THE RESULTS ARE ENCOURAGING PRIMARILY BECAUSE THERE SEEMS TO BE SOME INDICATION THAT THE UK ECONOMY IS PICKING UP AND WE COULD VERY DEFINITELY SEE FOR THE FIRST TIME IN QUITE A WHILE AN IMPROVEMENT IN BT'S REVENUE GROWTH MOREOVER THE COMPANY IS ADDRESSING NEW COMPETITION AT HOME AND IS AGGRESSIVELY TACKLING OVERSEAS MARKETS MR MORRIS SAID HE ISN'T WORRIED ABOUT BT'S WARNING THAT IT MIGHT NOT MAINTAIN DIVIDEND INCREASES AT 8 THE COMPANY YESTERDAY ANNOUNCED AN 81 INCREASE ITS HALFYEAR PAYOUT TO 665 PENCE A SHARE BUT MR VALLANCE WARNED THAT FUTURE DIVIDEND POLICY WILL NEED MORE THAN EVER TO TAKE ACCOUNT OF CONTINUING LOW INFLATION HARSHER REGULATION TOUGHER COMPETITION AND EMERGING LONGTERM INVESTMENT NEEDS AND OPPORTUNITIES MR VALLANCE SAID BT'S LINKUP WITH MCI COMMUNICATIONS CORP IS RUNNING AHEAD OF SCHEDULE BT AND MCI ARE SETTING UP A JOINT VENTURE TO OFFER ENHANCED GLOBAL TELECOMMUNICATIONS TO MULTINATIONAL COMPANIES MICHAEL HEPHER BT'S GROUP MANAGING DIRECTOR SAID THE COMPANY HAS A NUMBER OF PRICING INITIATIVES YET TO COME AFTER THIS WEEK ANNOUNCING A SERIES OF PRICE CUTS DESIGNED TO TACKLE COMPETITION FROM MERCURY COMMUNICATIONS HE WOULDN'T SAY WHAT THEY ARE OR WHEN THEY MIGHT BE INTRODUCED BT EXECUTIVES DIDN'T FORECAST FULLYEAR PROFIT BUT THEY SAID THERE ARE SUBSTANTIAL FURTHER LAYOFF COSTS TO COME IN THE SECOND HALF OF YEAR THE COMPANY REITERATED ITS PREVIOUS ESTIMATE THAT TOTAL LAYOFF COSTS THIS YEAR WILL AMOUNT TO 500 MILLION OF WHICH 150 MILLION HAS ALREADY BEEN SPENT IN THE FIRST HALF BT CUT ITS STAFF BY 4400 TO 166300 IT EXPECTS TO CUT 15000 JOBS THIS YEAR AND SAID THAT BETWEEN 10000 AND 11000 STAFF MEMBERS HAVE ALREADY SAID THEY WILL LEAVE 9311050128 931105 AIRPORT MISHAP AT HONG KONG SHOWS CONCERNS CHINA AIRLINES NEAR DISASTER EXPOSES SAFETY WORRIES AMID INCREASED TRAFFIC BY MIRIAM JORDAN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG A NEAR DISASTER WITH A CHINA AIRLINES JUMBO JET CARRYING 296 PASSENGERS AT HONG KONG'S KAI TAK AIRPORT HIGHLIGHTS SAFETY CONCERNS ABOUT THE CONGESTED AIRPORT AS THE COLONY AWAITS THE OPENING OF A REPLACEMENT THE BOEING 747400 FROM TAIPEI CAREERED INTO THE HARBOR WATERS SURROUNDING THE RUNWAY SHORTLY AFTER TOUCHING DOWN IN HEAVY RAIN ABOUT 1130 AM YESTERDAY THE JET'S FRONT SECTION WAS WELL ABOVE WATER ENABLING RESCUE CREWS TO EVACUATE ALL PASSENGERS THROUGH THE EXITS TWO PASSENGERS WERE TREATED FOR MODERATE INJURIES AND AN ADDITIONAL 21 WERE TREATED FOR SHOCK AND MINOR SCRATCHES ALBERT LAM ASSISTANT DIRECTOR FOR SAFETY REGULATION IN THE CIVIL AVIATION DEPARTMENT DECLINED TO SPECULATE ON THE CAUSE OF THE MISHAP SAYING ONLY THAT AN INVESTIGATION WAS UNDER WAY AIRPORT OPERATIONS WERE PARALYZED FOR MORE THAN SIX HOURS AFTER THE INCIDENT ALL INBOUND FLIGHTS WERE DIVERTED AND ALL OUTBOUND SERVICES WERE SUSPENDED UNTIL 6 PM HONG KONG'S AIRPORT THE WORLD'S FOURTHBUSIEST ALSO IS CONSIDERED ONE OF THE SAFEST BUT WITH ONLY ONE RUNWAY IT HAS FACED INCREASING TRAFFIC PRESSURES IN RECENT YEARS AS THE MAIN GATEWAY TO CHINA WEDGED INTO ONE OF THE WORLD'S MOST POPULATED URBAN AREAS KAI TAK IS CONSIDERED A CHALLENGE FOR TAKEOFF AND LANDING BY EVEN THE MOST SEASONED PILOTS SOME FOREIGN PILOTS CONSIDER IT THE MOST DIFFICULT AIRPORT IN ASIA PILOTS ACCUSTOMED TO FLYING IN HERE COME IN SMOOTH AS SILK OTHERS COME IN WITH THEIR WINGS FLAPPING UP AND DOWN ALL OVER THE PLACE SAID ONE AVIATION OFFICIAL WHO HAS A VIEW OF THE AIRPORT FROM HIS OFFICE A HONG KONGBASED PILOT WHO ASKED NOT TO BE IDENTIFIED PUT IT THIS WAY IT'S STRESSFUL IT'S NOT LIKE FLYING INTO CHICAGO AS A PLANE MAKES ITS FINAL APPROACH TO KAI TAK IT DESCENDS TO ABOUT 900 METERS PASSENGERS CAN SEE THE SKYSCRAPERS OF HONG KONG ISLAND IN THE DISTANCE AND THE BUILDINGS OF KOWLOON DISTRICT AT CLOSE RANGE WHEN THE PLANE IS ABOUT 120 METERS FROM THE GROUND THE AIRCRAFT MUST MAKE A 45DEGREE TURN TO LINE UP WITH THE RUNWAY BEFORE TOUCHING DOWN FINALLY THE PILOT MUST BRAKE SHARPLY SOON AFTER LANDING TO AVOID PLUNGING INTO KOWLOON BAY SEVERAL AVIATION EXPERTS SPECULATED THAT THE CHINA AIRLINES JETLINER MAY HAVE BEEN GOING TOO FAST WHEN THE PILOT TRIED TO BRAKE ON THE SLIPPERY TARMAC ANNUAL AIRCRAFT TAKEOFFS AND LANDINGS AT KAI TAK HAVE MORE THAN DOUBLED IN THE PAST 10 YEARS TO 131000 LAST YEAR THE CIVIL AVIATION DEPARTMENT RECENTLY COMMISSIONED A SAFETY AUDIT BY INDEPENDENT INSPECTORS AFTER THREE INCIDENTS IN THE FIRST HALF OF THE YEAR IN WHICH AIRPLANES FLEW TOO CLOSE TO EACH OTHER THAT COMPARED WITH AN AVERAGE OF ZERO TO TWO SUCH INCIDENTS IN THE PRIOR 15 YEARS THE RESULTS OF THE STUDY PROMPTED THE GOVERNMENT LAST FRIDAY TO CHANGE LATENIGHT AND EARLYMORNING LANDING PATTERNS IN 1980 KAI TAK HANDLED A MODEST 71 MILLION PASSENGERS LAST YEAR SOME 21 MILLION PASSENGERS SQUEEZED THROUGH THE AIRPORT IN 1994 DESPITE ADDITIONAL PARKING AND TERMINAL SPACE THE AIRPORT IS EXPECTED TO REACH ITS LIMIT OF 24 MILLION PASSENGERS PASSENGERS AND PILOTS WILL HAVE TO LIVE WITH KAI TAK'S CONGESTION FOR AT LEAST A FEW MORE YEARS THOUGH TRAFFIC IS EXPECTED TO KEEP GROWING 6 TO 8 A YEAR THROUGH THE 1990S HONG KONG'S NEW AIRPORT AT CHEK LAP KOK ISN'T EXPECTED TO BE READY UNTIL JUNE 1997 AT THE EARLIEST WHEN IT OPENS INITIALLY WITH ONE RUNWAY IT IS EXPECTED TO ACCOMMODATE ABOUT 30 MILLION PASSENGERS ANNUALLY 9311050127 931105 MITSUBISHI MOTORS POSTS PROFIT DROP REDUCES ESTIMATE OF EARNINGS FOR YEAR BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MITSUBISHI MOTORS CORP HURT BY THE STRONG YEN AND WEAK DOMESTIC SALES POSTED A 62 DROP IN UNCONSOLIDATED PRETAX PROFIT FOR THE FISCAL FIRST HALF AND ABANDONED ITS HOPES FOR AN EARNINGS UPTURN FOR THE FULL YEAR MITSUBISHI SAID PARENT PRETAX PROFIT FELL TO 1722 BILLION YEN 160 MILLION IN THE SIX MONTHS ENDED SEPT 30 FROM 1835 BILLION YEN A YEAR EARLIER NET INCOME SLID 67 TO 1002 BILLION YEN WHILE SALES DROPPED 16 TO 1217 TRILLION YEN THE AUTO MAKER ALSO LOWERED ITS PROFIT FORECAST FOR THE YEAR ENDING MARCH 31 MITSUBISHI NOW EXPECTS PRETAX PROFIT TO SLIDE 98 FROM A YEAR EARLIER TO 42 BILLION YEN THE COMPANY HAD EARLIER FORECAST A PROFIT INCREASE OF 4 MITSUBISHI'S CHANGE OF TUNE IS THE LATEST EVIDENCE OF HOW HARD JAPAN'S AUTO INDUSTRY SLUMP IS HITTING OF JAPAN'S TOP FIVE AUTO MAKERS MITSUBISHI IS WEATHERING THE SLUMP BEST THAT'S BECAUSE IT AVOIDED ITS RIVALS' MISTAKE OF BUILDING UP TOO MUCH FACTORY CAPACITY IN JAPAN DURING THE LATE 1980S WHEN SALES WERE BOOMING IT HAS ALSO DONE WELL IN THE DOMESTIC MARKET WITH ITS POPULAR PAJERO JEEP AND OTHER SOCALLED RECREATIONAL VEHICLES THE INDUSTRY'S CHIEF GROWTH SECTOR MITSUBISHI'S STRATEGY CONTRASTS SHARPLY WITH THAT OF MAZDA MOTOR CORP A COMPANY WITH COMPARABLE SALES VOLUME MAZDA BUILT UP FACTORY CAPACITY AND EXPANDED ITS PRODUCT LINEUP IN RECENT YEARS IN ANTICIPATION OF RISING SALES BUT SALES PLUMMETED INSTEAD AND MAZDA FORECASTS A PARENT PRETAX LOSS OF 32 BILLION YEN FOR THE CURRENT YEAR EVEN MITSUBISHI'S RELATIVE STRENGTHS HOWEVER COULDN'T COMPENSATE FOR THE STEEP DROP IN JAPANESE DEMAND FOR CARS AND THE STRONGER YEN WHICH EATS INTO THE YEN VALUE OF OVERSEAS REVENUE AND FORCES JAPAN'S EXPORTERS TO RAISE PRICES ABROAD MITSUBISHI SOLD 348193 CARS AND TRUCKS IN THE FIRST HALF 45 FEWER THAN LAST YEAR AND COMPARED WITH A 94 DECLINE FOR THE MARKET AS A WHOLE THEY'RE PROBABLY THE HEALTHIEST OF THE BIG FIVE RIGHT NOW SAID PETER BOARDMAN AN ANALYST AT UBS SECURITIES IN TOKYO MITSUBISHI'S LOWER PROFIT OUTLOOK SHOWS YOU HOW DIFFICULT THE YEAR IS MR BOARDMAN SAID MITSUBISHI PROBABLY WILL FALL SOMEWHAT SHORT OF ITS LOWER FULLYEAR EARNINGS FORECAST HE ESTIMATES PARENT PRETAX PROFIT WILL COME IN AT 38 BILLION YEN FOUR BILLION YEN SHY OF THE COMPANY'S GOAL HE AND OTHER ANALYSTS HOWEVER ADD THAT THE COMPANY'S DOMESTIC SALES WILL PROBABLY REMAIN STRONG RELATIVE TO THE REST OF THE MARKET MAZDA AND HONDA MOTOR CO REPORT THEIR FIRSTHALF EARNINGS LATER THIS MONTH NISSAN MOTOR CO POSTED A 2893 BILLIONYEN PRETAX LOSS LAST WEEK ANALYSTS SAY THAT EVEN INDUSTRY TITAN TOYOTA MOTOR CORP WHOSE FISCAL FIRST HALF ENDS IN DECEMBER COULD FACE AN OPERATING LOSS IF THE YEN REMAINS STRONG THE JAPANESE CURRENCY HAS RISEN ROUGHLY 16 AGAINST THE DOLLAR SINCE THE BEGINNING OF THIS YEAR 9311050126 931105 PENSION ADVISER FACES US CHARGES ALLEGING KICKBACKS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL THE FORMER TOP PENSIONFUND ADVISER FOR ALEX BROWN & SONS INC WAS CHARGED WITH ACCEPTING MORE THAN 18 MILLION IN KICKBACKS TO STEER PENSION INVESTMENTS TO UNITS OF AETNA LIFE & CASUALTY CO AND ANOTHER COMPANY CARMEN W ELIO WHO FORMERLY HEADED THE BOSTONBASED PUBLICPENSION DEPARTMENT AT ALEX BROWN WAS CHARGED IN A GRANDJURY INDICTMENT AND A CIVIL LAWSUIT FILED BY THE SECURITIES AND EXCHANGE COMMISSION BOTH IN FEDERAL COURT IN BOSTON ALEX BROWN ISN'T ACCUSED OF WRONGDOING IN EITHER CASE WE WERE AS SHOCKED BY THIS AS MUCH AS ANYONE SAID AB KRONGARD VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BALTIMORE BROKERAGE FIRM THE CHARGES AGAINST MR ELIO STEM FROM A LONGRUNNING INVESTIGATION BY STATE AND FEDERAL AUTHORITIES INTO KICKBACKS THAT ALLEGEDLY HELPED STEER ABOUT 400 MILLION FROM VARIOUS STATEEMPLOYEES' PENSION FUNDS TO ANNUITIES AND SERVICES OFFERED BY AETNA LIFE INSURANCE CO AETNA CAPITAL MANAGEMENT INC AND A BRITISH COMPANY LOMBARD ODIER INTERNATIONAL PORTFOLIO MANAGEMENT LTD THE TWO AETNA UNITS PREVIOUSLY AGREED TO PAY 52 MILLION TO SETTLE RELATED CHARGES BROUGHT BY THE SEC FEDERAL PROSECUTORS AND THE MASSACHUSETTS ATTORNEY GENERAL AETNA WHICH IS BASED IN HARTFORD CONN AND ITS TWO UNITS ALSO PAID 95 MILLION TO VARIOUS MASSACHUSETTS AND RHODE ISLAND PUBLICEMPLOYEE RETIREMENT FUNDS IN A RELATED SETTLEMENT LOMBARD ODIER ISN'T A DEFENDANT IN EITHER THE INDICTMENT OR SEC LAWSUIT A LAWYER FOR THE FIRM EDWARD BENJAMIN OF ROPES & GRAY SAID LOMBARD ODIER MADE COMPLETE DISCLOSURE OF ITS RELATIONSHIP WITH MR ELIO IN SEC FILINGS THE FIRM IS CONFIDENT THAT THEY DID EVERYTHING THAT THEY WERE REQUIRED TO DO MR BENJAMIN SAID THE FEDERAL GRAND JURY INDICTMENT CHARGES MR ELIO 53 YEARS OLD WITH MAIL FRAUD WIRE FRAUD AND MONEY LAUNDERING IF CONVICTED HE COULD BE FINED AND SENTENCED TO PRISON MR ELIO'S LAWYER STEPHEN DELINSKY OF BOSTON SAID HIS CLIENT DENIES VIGOROUSLY ALL OF THE ALLEGATIONS MR ELIO MADE FULL DISCLOSURE AS REQUIRED BY LAW MR DELINSKY SAID ADDING THAT MR ELIO BELIEVED THAT WRITTEN CONTRACTS WITH THE AETNA UNITS REQUIRED THE UNITS TO TELL THE PENSION FUNDS ABOUT THE COMPENSATION THAT MR ELIO RECEIVED TO ME IT IS PARADOXICAL THAT MR ELIO WOULD BE INDICTED ON FAR LESS SERIOUS CONDUCT THAN THAT COVERED BY THE GOVERNMENT SETTLEMENT WITH AETNA MR DELINSKY SAID THE SEC CASE ACCUSES MR ELIO AND FANEUIL HALL SECURITIES INC A BROKERAGE COMPANY HE FORMED IN 1989 OF FAILING TO INFORM THE PENSION FUNDS THAT HE WAS RECEIVING KICKBACKS FROM THE COMPANIES IN WHICH THE FUNDS WERE INVESTING THE SEC SAYS THE KICKBACKS WERE BEING PAID BETWEEN 1982 AND MID1991 MR ELIO LEFT ALEX BROWN IN 1990 ACCORDING TO THE SEC THE AGENCY'S SUIT ASKS THAT MR ELIO BE ORDERED TO GIVE UP ALL OF THE COMPENSATION HE ALLEGEDLY RECEIVED 9311050125 931105 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN UKRAINIAN ECONOMISTS AND LAWMAKERS SAID PRESIDENT LEONID KRAVCHUK'S DECREES SUSPENDING HARDCURRENCY AUCTIONS AND CONTROLLING PRICES SIGNAL A DANGEROUS RETURN TO THE FAILED SOVIET COMMAND ECONOMY THE ACTIONS ALSO COULD CAUSE AN INCREASE IN CAPITAL FLIGHT THE CURRENCY CURB WAS IMPOSED AFTER THE US DOLLAR TRADED AT A RECORD 31000 UKRAINIAN COUPONS AT THE INTERBANK CURRENCY EXCHANGE'S WEEKLY SESSION IN JANUARY THE DOLLAR TRADED AT 1000 COUPONS THE DECREE FULLY DISCLOSED YESTERDAY SET THE GOAL OF HELPING DEVELOP A CURRENCY MARKET YET IT ABOLISHED THE MARKET METHOD OF SETTING THE COUPON'S VALUE STILL THE EXCHANGE OPERATED YESTERDAY WHEN THE DOLLAR BOUGHT A RECORD 31150 COUPONS UKRAINE HASN'T IMPLEMENTED SERIOUS MARKET REFORMS AND HALFHEARTED MOVES AWAY FROM COMMUNIST WAYS HAVE PRODUCED AN ECONOMIC FREEFALL AND INFLATION OF 50 A MONTH MR KRAVCHUK ALSO PUT CONTROLS ON MOST RETAIL AND WHOLESALE PRICES THOUGH FOREIGNINVESTED BUSINESSES WERE EXEMPTED EASTERN GERMAN WAGES AND SALARIES AVERAGED 65 OF PAY IN WESTERN GERMANY AS OF LAST APRIL UP FROM 58 IN 1992 AND 47 IN 1991 THE GOVERNMENT SAID GROSS MONTHLY PAY FOR AN EASTERN GERMAN WORKER AVERAGED 1722 IN THE LATEST REPORT UP 18 FROM A YEAR EARLIER WESTERN GERMAN PAY AVERAGED 2660 A 46 INCREASE FROM APRIL 1992 SINCE REUNIFICATION PAY PARITY HAS BEEN PURSUED AS THE EASTERN REGION DEVELOPED A MARKET ECONOMY THAILAND WILL ALLOW FOREIGN INVESTORS TO OWN 100 OF AUTO ASSEMBLY PLANTS ENDING A LONGSTANDING REQUIREMENT OF AT LEAST 51 THAI OWNERSHIP THE GOVERNMENT ALSO WILL LIFT A BAN ON ISSUING NEW LICENSES FOR CAR ASSEMBLY PLANTS AND IT WILL LET COMPANIES USE FEWER DOMESTICALLY MADE AUTO PARTS IN THAIASSEMBLED CARS IF SOME PARTS ARE EXPORTED UNDER CURRENT RULES AT LEAST 54 OF THE PARTS FOR THE AUTOS MUST BE MADE IN THE COUNTRY TWELVE JOINTVENTURE PLANTS ASSEMBLE ABOUT 200000 CARS A YEAR PERU WON APPROVAL FOR FINANCING TO REFURBISH ITS CUZCO AREA RAIL SYSTEM INCLUDING THE MACHU PICCHU LINE THAT EACH YEAR TRANSPORTS TENS OF THOUSANDS OF TOURISTS TO THE LOST CITY OF THE INCAS A WORLD BANK CREDIT OF 35 MILLION IS TO BE COMPLETED IN FEBRUARY THE MACHU PICCHU TRAIN LINKS CUZCO VIA A 69MILE ROUTE DOWN THE URUBAMBA VALLEY TO THE PRECOLOMBIAN RUINS REVAMPING THE LINE TO THE MOUNTAINTOP MACHU PICCHU IS TO COST 45 MLLION THE ANDES AREA MAY HAVE BEEN THE INCAS' FINAL REFUGE FROM SPANISH CONQUISTADORS AUSTRALIA WILL PROPOSE LEGISLATION TO BAN VIDEO GAMES THAT DEPICT GRAPHIC VIOLENCE AND RAPE MATERIAL SHOWING SEXUAL ACTIVITY WITH CONSENT WOULD BE RATED R OR X DEPENDING ON EXPLICITNESS OF THE PRESENTATION BUYERS OF RESTRICTED VIDEOS MUST BE AT LEAST 18 YEARS OLD AND XRATED MATERIAL CAN BE ORDERED ONLY BY MAIL THE NEW CODE WOULD BE MORE STRICT THAN THE FILM CLASSIFICATION SYSTEM LAW ENFORCEMENT OFFICIALS SAID CITING CONCERN THAT INTERACTIVE GAMES MAY BE MORE DAMAGING TO CHILDREN THAN FILMS WITH THE SAME LEVEL OF VIOLENCE THE EUROPEAN COMMUNITY WILL ASK RUSSIA TO OPEN ITS FINANCIALSERVICES MARKETS TO EC COMPANIES BUT IT RULED OUT TALKS ON FREE TRADE UNTIL AT LEAST 1998 OFFICIALS IN THE 12NATION TRADE BLOC SAID MEANWHILE THE EC COMMISSION WILL CONTINUE TO SEEK AN INTERMEDIATE PARTNERSHIP ACCORD WITH RUSSIA TO EXPAND TRADE WITHIN STRICT LIMITS THE EC WANTS THIS ACCORD TO HAVE PROVISIONS ON HUMAN RIGHTS CLOSER POLITICAL DIALOGUE MORE TRADE SAFEGUARDS IN SENSITIVE SECTORS AND SPEEDY ACCESS TO THE RUSSIAN FINANCIAL ARENA BY EC COMPANIES ISRAEL'S FIRST COMMERCIAL TELEVISION CHANNEL BEGAN BROADCASTING ENDING THE STATE MONOPOLY THAT TRIED TO SELL VIEWERS ONLY ON SAVING WATER OR DRIVING SAFELY THE NEW CHANNEL LIT UP WITH A NEWSCAST AND USED FASTMOVING GRAPHICS AND MUSIC AND THE FIRST AD WAS IRONICALLY FOR OUTDOOR ADVERTISING PROGRAMMING RANGES FROM A SITUATION COMEDY TO GAME VARIETY AND TALK SHOWS AS MUCH AS 60 OF THE STATION'S SHOWS ARE TO BE MADE IN ISRAEL AND IN THE HEBREW LANGUAGE CABLE TV HAS BEEN AVAILABLE FOR THREE YEARS IN ISRAEL GIVING VIEWERS ACCESS TO US NEWS AND MUSIC CHANNELS AND MIDEASTERN AND EUROPEAN STATIONS CREATION OF THE PRIVATE STATION FROM A FORMERLY STATERUN CHANNEL ILLUSTRATES THE LOOSENING OF GOVERNMENT CONTROL AS THE COUNTRY OF 52 MILLION PEOPLE DEVELOPS A GROWING AFFINITY FOR WESTERNSTYLE CONSUMERISM STATERUN TV CARRIES HOMEGROWN NEWS AND TALK SHOWS A MUSIC QUIZ PROGRAM AND MUSICALS BUT MOST ENTERTAINMENT CONSISTS OF US OR BRITISH FILMS AND TV COMEDIES AND DRAMAS TO STAY RELEVANT ISRAEL TV RESCHEDULED AND REFORMATTED ITS NEWS AND INCREASED LOCALLY PRODUCED SHOWS IRAN DEVALUED ITS RIAL CURRENCY FOR THE THIRD TIME THIS WEEK AGAINST THE US DOLLAR AND OTHER MAJOR CURRENCIES WHICH COULD HELP WITH A WEAKENING BALANCE OF PAYMENTS IN THE ECONOMY THAT GETS 90 OF EXPORT EARNINGS FROM OIL ISLAMIC EXTREMISTS IN ALGERIA WARNED ALL FOREIGNERS TO LEAVE THE COUNTRY WITHIN A MONTH OR FACE DEATH RADICAL GROUPS ARE TRYING TO TOPPLE THE MILITARYBACKED GOVERNMENT INSTALLED AFTER A 1992 COUP THE ENSUING VIOLENCE HAS LEFT MORE THAN 2000 PEOPLE DEAD 9311050124 931105 ECONOMY PRODUCTIVITY CLIMBED IN THIRD QUARTER SUPPORTING NOTION OF LONGTERM TREND BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODUCTIVITY ROSE AT A STRONG 39 ANNUAL RATE IN THE THIRD QUARTER THE LABOR DEPARTMENT SAID REINFORCING THE NOTION THAT US CORPORATIONS HAVE EMBARKED ON A LONGTERM TREND OF INCREASING EFFICIENCY THERE HAVE BEEN DOUBTS ABOUT WHETHER THE PRODUCTIVITY TREND HAS ACTUALLY IMPROVED PRODUCTIVITY WHICH IS OUTPUT FOR EACH HOUR ON THE JOB DECLINED AT A 04 RATE IN THE SECOND QUARTER AND A 18 PACE IN THE FIRST AFTER AN IMPRESSIVE 20YEAR HIGH DURING 1992 THOSE DECLINES RAISED QUESTIONS OF WHETHER STRONG PRODUCTIVITY GAINS AT THE START OF THE RECOVERY WERE JUST A CYCLICAL JUMP RATHER THAN A LONGLASTING CHANGE IN THE WAY US COMPANIES DO BUSINESS BUT MANY ANALYSTS SAID YESTERDAY'S REPORT PROVIDES STRONG SUPPORT THAT THE INCREASE IN PRODUCTIVITY IS INDEED STRUCTURAL IN ADDITION THE SECONDQUARTER DROP IN PRODUCTIVITY WAS ORIGINALLY ESTIMATED AS A LARGER 13 ANNUAL RATE THIS IS A VERY DIFFERENT RECOVERY THAN WE HAVE SEEN IN THE PAST BECAUSE IT HAS BEEN DRIVEN FAR MORE BY PRODUCTIVITY GAINS SAID STEPHEN ROACH SENIOR ECONOMIST FOR MORGAN STANLEY & CO IN NEW YORK AND AN OUTSPOKEN BELIEVER THAT SOMETHING NEW IS GOING ON WITH PRODUCTIVITY I AM STEADFAST IN MY CONVICTION THAT THIS WILL BE LONGLASTING FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN HAS ALSO SAID HE BELIEVES EFFICIENCY GAINS WILL BE LONGTERM IF THEY ARE ANALYSTS SAY THAT AMERICANS ARE IN STORE FOR A BETTER STANDARD OF LIVING AND THAT US BUSINESSES WILL BECOME FAR MORE COMPETITIVE WITH THEIR OVERSEAS RIVALS IN OTHER REPORTS YESTERDAY THE GOVERNMENT SAID FACTORY ORDERS ROSE 07 IN SEPTEMBER AND NEW CLAIMS FOR JOBLESS BENEFITS FELL FOR THE SECOND WEEK IN A ROW MR ROACH OF MORGAN STANLEY SAYS SOME OF THE BENEFITS OF PRODUCTIVITY ARE ALREADY AT HAND LOW INFLATION HE SAYS ISN'T JUST THE RESULT OF A SLUGGISH ECONOMY BUT ALSO A MORE COMPETITIVE WORK FORCE THAT IS ABLE TO MAKE GOODS WITH LESS TIME AND COST BUT ALL THE BENEFITS WILL NOT BE EVIDENT FOR TWO TO THREE YEARS MR ROACH SAID THERE ARE SOME WHO DISAGREE WITH THE ARGUMENT THAT PRODUCTIVITY GAINS ARE MORE THAN JUST A PHASE NORTHWESTERN UNIVERSITY ECONOMIST ROBERT GORDON SUGGESTED IN A RECENT BROOKINGS INSTITUTION PAPER THAT WHILE THERE HAS BEEN A SUBSTANTIAL INCREASE IN PRODUCTIVITY DURING THE RECOVERY COMPARED WITH THE 10 YEARS BEFORE IT THERE IS NO CONCRETE EVIDENCE YET THAT THE US HAS BROKEN OUT OF A TREND OF MEDIOCRE PRODUCTIVITY GROWTH IN ANY CASE PRODUCTIVITY GAINS ARE ACCOUNTING FOR A SUBSTANTIAL PORTION OF THE GROWTH IN THIS RECOVERY COMPARED WITH OTHERS ECONOMIC GROWTH IS A COMBINATION OF TWO FACTORS AN INCREASE IN THE NUMBER OF HOURS WORKED AND AN INCREASE IN THE AMOUNT OF OUTPUT PRODUCED PER WORKHOUR OR PRODUCTIVITY IN PAST RECOVERIES ROUGHLY HALF THE TOTAL GROWTH OF THE ECONOMY HAS COME FROM EACH OF THE TWO FACTORS BUT ONE DISTINGUISHING FEATURE OF THIS RECOVERY IS THAT NEARLY ALL THE GROWTH HAS COME FROM INCREASED PRODUCTIVITY DESPITE THE FACT THAT PRODUCTIVITY GROWTH HASN'T BEEN UNUSUALLY STRONG COMPARED WITH PAST RECOVERIES PRODUCTIVITY GAINS HAVE PLAYED AN ESSENTIAL ROLE IN SUPPORTING OUTPUT GROWTH IN THE CURRENT RECOVERY SAYS ECONOMIST GEORGE KAHN OF THE KANSAS CITY FEDERAL RESERVE BANK THE RISE IN FACTORY ORDERS DURING SEPTEMBER WAS SEEN AS AN ENCOURAGING SIGN FOR THE MANUFACTURING SECTOR IT COMES AFTER A 12 JUMP IN AUGUST AND IS THE THIRD ADVANCE IN FOUR MONTHS ORDERS ROSE FOR BOTH DURABLE AND NONDURABLE GOODS WITH THE GAIN IN NONDURABLES BEING THE FIRST IN THREE MONTHS SHIPMENTS REACHED THEIR HIGHEST LEVEL ON RECORD WITH TECHNOLOGY AND INDUSTRIAL EQUIPMENT UP SHARPLY ANALYSTS SAID THAT BODES WELL FOR CONTINUED STRONG GROWTH IN CAPITAL SPENDING ALSO THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE FELL 10000 LAST WEEK TO 338000 THE FOURWEEK MOVING AVERAGE OF CLAIMS CONSIDERED A BETTER MEASURE OF LABORMARKET CONDITIONS ROSE TO 345250 FROM 341000 THE WEEK BEFORE THE DEPARTMENT ISSUES ITS REPORT ON OCTOBER UNEMPLOYMENT TODAY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9311050123 931105 CREDIT MARKETS PRICE OF 30TREASURY SLIDES NEARLY ONE POINT ON FEARS OF AN IMPROVED EMPLOYMENT PICTURE BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BONDPRICE SLIDE ACCELERATED YESTERDAY AS INVESTORS UNLOADED LONGTERM TREASURY DEBT AHEAD OF TODAY'S EMPLOYMENT REPORT WHICH THEY FEAR WILL SHOW A QUICKENING ECONOMIC RECOVERY SELLERS RAN THE GAMUT FROM PROFESSIONALS UNWINDING ELABORATE POSITIONS ASSEMBLED MONTHS EARLIER TO MONEY MANAGERS SEEKING TO LOCK IN THEIR STRONG GAINS THIS YEAR A FEW MUTUAL FUNDS SAID SHAREHOLDERS WERE SWITCHING OUT OF BOND FUNDS YESTERDAY BUT MUTUALFUND OUTFLOWS WEREN'T MASSIVE IT'S KIND OF FREEFALLING BARBARA KENWORTHY A DREYFUS PORTFOLIO MANAGER SAID LATE YESTERDAY AFTERNOON AS THE BENCHMARK 30YEAR TREASURY BOND WAS DOWN 1 3/8 POINTS OR 1375 FOR EACH 1000 IN FACE VALUE BY DAY'S END THE PRICE HAD RECOVERED SLIGHTLY FINISHING DOWN NEARLY ONE POINT OR 906 FOR EACH 1000 OF BONDS TO 100 31/32 THE YIELD WHICH MOVES INVERSELY TO PRICE ROSE TO 617 FROM 610 WEDNESDAY THE LONG BOND HAS BEEN PUMMELED IN THE PAST TWO WEEKS AS MONEY MANAGERS FEARING THE INFLATIONARY POTENTIAL OF A REVIVING ECONOMY DITCHED THE SECURITY INFLATION ERODES THE VALUE OF FIXEDINCOME INVESTMENTS UNLIKE PREVIOUSLY YESTERDAY'S SELLING WASN'T PROMPTED BY A SPECIFIC ECONOMIC REPORT FIXEDINCOME MONEY MANAGERS WERE AMONG THE BIG SELLERS AS MANY TRIED TO LOCK IN PROFITS BEFORE ANY MORE NASTY SURPRISES CAN HURT WHAT OTHERWISE WILL BE A BANNER YEAR MUCH OF THE SELLING ALSO CAME FROM HEDGE FUNDS AND OTHER ARBITRAGE SPECIALISTS WHICH HAD MADE SOPHISTICATED BETS ON HOW YIELDS OF DIFFERENTMATURITY SECURITIES WOULD CHANGE IN RELATION TO EACH OTHER MANY STRATEGIES INVOLVED BUYING THE 30YEAR BOND WEEKS OR MONTHS AGO TO UNWIND THOSE BETS THE STRATEGISTS HAVE BEEN MASSIVELY SELLING THE 30YEAR BOND OVER THE PAST SEVERAL DAYS SELLING WAS MUTED AMONG BOND MUTUAL FUNDS THE DOMAIN OF THE SMALL INVESTOR FIDELITY INVESTMENTS HAS SEEN A LITTLE BIT OF CASH FLOWING OUT OF LONGTERM TAXABLE AND TAXEXEMPT BOND FUNDS IN THE PAST WEEK IT HAS MIRRORED WHAT WENT ON IN THE BOND MARKET A SPOKESWOMAN SAID AT VANGUARD GROUP A LONGTERM CORPORATE BOND FUND SAW AN OUTFLOW YESTERDAY A SPOKESMAN SAID BUT SOME FUND GROUPS SAW LITTLE REACTION JON FOSSEL CHIEF EXECUTIVE OF OPPENHEIMER FUNDS SAID THE ONLY PEOPLE THAT ARE PANICKING ARE THE TRADERS ACCORDING TO FUNDFLOW TRACKER AMG DATA SERVICES IN ARCATA CALIF A SAMPLING OF NOLOAD MUNICIPAL BOND FUNDS HAD OUTFLOWS OF MORE THAN 270 MILLION IN THE TWO WEEKS THROUGH OCT 27 COMPARED WITH INFLOWS OF 370 MILLION THE PREVIOUS TWO WEEKS PREVIOUS OUTFLOWS APPARENTLY LEFT CERTAIN BOND FUNDS WITH REDUCED CASH HOLDINGS CAUSING THEM TO SELL SOME BONDS TO PAY DEPARTING SHAREHOLDERS THIS WEEK MANY BOND INVESTORS HAVE CONCLUDED THAT THEY'D RATHER BE SAFE THAN SORRY IF THEY SELL NOW MANY FIXEDINCOME FUND MANAGERS WILL LOCK IN FABULOUS YEAREND TOTAL RETURNS OF 12 TO 17 SAID DREYFUS' MS KENWORTHY THOSE RETURNS PRICE GAINS PLUS INCOME WERE REAPED AS THE MANAGERS ENJOYED THE LONG BOND'S RIDE DOWN IN YIELD FROM 74 AS THE YEAR BEGAN THE MARKETS HAVE BEEN SO WEAK THAT PEOPLE HAVE GONE INTO A PREVENT' MODE SHE SAID THEY'RE TRYING TO LIMIT RISK EXPOSURE FOR THE REST OF THE YEAR THAT'S WHERE THE CONSISTENT SELLING IS COMING FROM AND THAT'S WHERE THE ABSENCE OF BUYING IS COMING FROM MS KENWORTHY SOLD SOME CORPORATE BONDS YESTERDAY BUT IS HOLDING LONGTERM TREASURYS ON THE BELIEF THE MARKET OVERREACTED SHE SAID DREYFUS DIDN'T SEE A WAVE OF REDEMPTIONS YESTERDAY BUT HAS KEPT AMPLE CASH IN BOND FUNDS BECAUSE THE FIRM IS SENSITIVE TO THE POSSIBILITY OF OUTFLOWS IN DENVER INVESCO FUNDS GROUP SAID IT HAS SEEN SLIGHT OUTFLOWS FROM SOME BOND FUNDS BUT THAT IT HAD ENOUGH CASH ON HAND TO PAY DEPARTING SHAREHOLDERS WITHOUT SELLING BONDS BOND INVESTORS ARE UNNERVED BY THE PROSPECT OF THIS MORNING'S EMPLOYMENT REPORT AND NEXT WEEK THE GOVERNMENT WILL RELEASE THE PRODUCER AND CONSUMER PRICE INDEXES THE MARKET EAGERLY HAD RUN THE PRICE OF THE 30YEAR BOND UP IN MIDOCTOBER WHEN INFLATION SEEMED DESTINED TO STAY AT HISTORICALLY LOW LEVELS ON OCT 15 THE LONGTERM BOND HIT A YIELD OF 579 ITS LOWEST LEVEL SINCE THE TREASURY BEGAN AUCTIONS OF 30YEAR BONDS IN 1977 BUT LACKING FRESH EVIDENCE OF ITS CONTINUED REDUCTION THE MARKET SINCE HAS DRIVEN THE YIELD STEADILY UPWARD MANY ECONOMISTS BELIEVE INFLATION IS WELL UNDER CONTROL EVEN WITH ACCELERATING ECONOMIC GROWTH AT THIS POINT THE BOND MARKET HASN'T COME TO TERMS WITH THE IDEA THAT YOU CAN HAVE ACCELERATING ECONOMIC GROWTH WITHOUT INFLATION SAID ADAM GRESHIN PRINCIPAL IN THE GLOBAL BOND GROUP AT SCUDDER STEVENS & CLARK UNTIL THERE IS DEFINITE PROOF THAT GROWTH DOESN'T EQUAL INFLATION PEOPLE WILL BE NERVOUS IN THE BOND MARKET THE REPORT THAT COULD ADD FUEL TO THE INFLATIONARY FEARS TODAY WILL COME FROM THE US LABOR DEPARTMENT ITS SCHEDULED RELEASE OF OCTOBER'S NONFARM PAYROLL REPORT IS EXPECTED TO SHOW THAT JOBS ARE UP BY 154000 ACCORDING TO ECONOMISTS POLLED BY DOW JONES CAPITAL MARKETS REPORT IF THE EMPLOYMENT NUMBER IS STRONGER THAN EXPECTED BONDS COULD GET HAMMERED AGAIN THAT PROMPTED MANY ABRITRAGE SPECIALISTS TO UNWIND THEIR TRADES YESTERDAY YOU'VE GOT A BIG EMPLOYMENT NUMBER COMING OUT SAID ALEX POWERS HEAD OF TAXABLE FIXED INCOME FOR CHASE INVESTMENT MANAGEMENT IF YOU'VE MADE A LOT OF MONEY IN YOUR TRADE IT'S NATURAL YOU'D WANT TO LOCK SOME OF THAT UP BEFORE THE REPORT COMES OUT BUT THERE ARE SOME HARDY SOULS WHO ARE RIDING OUT THE CHOPPINESS BY HOLDING ON TO LONG BONDS MARGARET PATEL WHO HEADS A GOVERNMENTBOND FUND FOR BOSTON SECURITY COUNSELORS SAID SHE CONSIDERS THIS A GOOD BUYING OPPORTUNITY THE REASON SHE BELIEVES THERE'S ENORMOUS INDUSTRIAL CAPACITY AVAILABLE SO THE ECONOMY CAN EXPAND AT RELATIVELY HIGH RATES FOR A LONG TIME BEFORE COMPANIES COULD FORCE THROUGH PRICE INCREASES ON A SUSTAINED BASIS SHE SAID THAT MANY SELLERS ARE INVESTORS WHO BOUGHT LATE INTO THE BOND'S RALLY AND ARE NERVOUS AND INCLINED TO SELL OUT ON ANY WHIFF OF NEGATIVE NEWS MS PATEL ARGUES THAT THE LONG BOND'S YIELD COULD FALL NEXT WEEK THE REASON AS PART OF THE FEDERAL GOVERNMENT'S PLAN TO SHIFT FINANCING TO SHORTERTERM BONDS THE QUARTERLY AUCTION NEXT WEEK WON'T INVOLVE 30YEAR BONDS MS PATEL THINKS A SHORTAGE OF 30YEAR BONDS COULD RESULT SOME ANALYSTS NOTED THAT THE LONG BOND'S TUMBLE YESTERDAY CAME IN THE FACE OF WHAT SHOULD HAVE BEEN SUPPORTIVE NEWS FOR BOND INVESTORS THE LABOR DEPARTMENT REPORTED A 39 SURGE IN PRODUCTIVITY IN THE THIRD QUARTER ALONG WITH A 18 DECLINE IN UNIT LABOR COSTS PRODUCTIVITY AND LABOR COSTS ARE CONSIDERED IMPORTANT BAROMETERS OF FUTURE INFLATION IN A PRODUCTIVITYLED RECOVERY YOU CAN HAVE GROWTH WITHOUT INFLATION SAID STEPHEN ROACH CODIRECTOR OF ECONOMIC RESEARCH AT MORGAN STANLEY BUT THE LATEST SWOONS IN BOND PRICE AREN'T DRIVEN BY FUNDAMENTALS SAID PATRICK BEIMFORD SENIOR VICE PRESIDENT AT KEMPER FINANCIAL SERVICES WHEN THE TECHNICALS AND EMOTIONS TAKE OVER PEOPLE DON'T CARE ABOUT THE FUNDAMENTALS HE SAID ALSO YESTERDAY THE TREASURY SOLD 1005 BILLION IN ACCEPTED BIDS OF 36DAY TREASURY CASH MANAGEMENT BILLS THE BILLS ARE DATED NOV 10 AND MATURE DEC 16 1993 SELLERS RETURNED TO THE MUNICIPAL BOND MARKET IN FORCE PUSHING DOWN PRICES BY 5/8 POINT OR MORE MUNI SPECIALISTS SAY BONDHOLDERS WERE TOO BUSY SELLING IN RESPONSE TO A SPATE OF SURPRISINGLY STRONG US ECONOMIC DATA TO TAKE A BREATHER BEFORE TODAY'S RELEASE OF THE OCTOBER JOBS STATISTICS A DOW JONES CAPITAL MARKETS REPORT CONSENSUS FORECASTS A 67 JOBLESS RATE FOR OCTOBER IN SEPTEMBER THERE WAS A 156000 INCREASE IN NONFARM PAYROLLS AND A 67 UNEMPLOYMENT RATE YESTERDAY IT WAS REPORTED THAT SEPTEMBER FACTORY ORDERS INCREASED 07 THE THIRD INCREASE IN FOUR MONTHS IN LATE TRADING THE LOS ANGELES DEPARTMENT OF WATER AND POWER'S 475 OF 2019 ELECTRIC PLANT REVENUE REFUNDING BONDS WERE DOWN 3/4 AT 89 TO 89 1/2 YIELDING 552 THE HAWAII DEPARTMENT OF BUDGET AND FINANCE'S 545 OF 2023 SPECIALPURPOSE MORTGAGE REVENUE BONDS CLOSED 5/8 LOWER AT 97 3/8 TO 98 YIELDING 559 IN NEWISSUE ACTIVITY THE MASSACHUSETTS HEALTH AND EDUCATIONAL FACILITIES AUTHORITY'S 1298 MILLION SERIES K REVENUE BOND ISSUE WAS BROUGHT TO THE MARKET BY A GOLDMAN SACHS GROUP AT A REPRICING THE YIELD FOR BONDS DUE IN 1994 WAS LOWERED TO 270 FROM 280 WHILE THE YIELD FOR 2023 BONDS WAS RAISED FIVE BASIS POINTS TO 568 AT THE REPRICING 2018 BONDS WERE ALSO ADDED THEY ARE 525S PRICED TO YIELD 565 OVERALL YIELDS RANGE FROM 270 IN 1994 TO 568 IN 2023 RELIANCE GROUP HOLDINGS SOLD 400 MILLION IN SEVENYEAR SENIOR NOTES AND 250 MILLION IN 10YEAR SENIOR SUBORDINATED NOTES THE SENIOR NOTES WERE PRICED AT PAR TO YIELD 9 AND THE DEBT IS NONCALLABLE THE SECOND TRANCHE WAS PRICED AT PAR TO YIELD 975 AND THE DEBT IS CALLABLE AFTER FIVE YEARS THE JUNKBOND DEAL WHICH WILL BE USED TO REPLACE DEBT WAS OVERSUBSCRIBED BY A BROAD RANGE OF INVESTORS AND SOLD TO MORE THAN 50 ACCOUNTS ACCORDING TO AN OFFICIAL AT DONALDSON LUFKEN & JENRETTE WHICH UNDERWROTE THE ISSUE IT WAS PAIRED WITH A 25MILLIONSHARE EQUITY OFFERING ALSO SOLD YESTERDAY AT 8 A SHARE PACIFIC GAS & ELECTRIC'S 700 MILLION TWOTRANCHE OFFERING DOMINATED THE INVESTMENTGRADE MARKET WHICH SAW 127 BILLION OF DEBT ISSUANCE THE UTILITY ISSUED 350 MILLION OF FIRST MORTGAGE BONDS MATURING IN MARCH 2004 AND 350 MILLION OF FIRST MORTGAGE BONDS MATURING IN MARCH 2023 SAID PATRICK AUSTIN A FINANCIAL CONSULTANT FOR THE UTILITY ALSO IN THE MARKET WAS ENRON CAPITAL LLC WHICH PRICED MONTHLY INCOME PREFERRED SHARES MIPS AND PHILLIPSVAN HEUSEN WHICH PRICED 100 MILLION OF 30YEAR DEBT TRADING IN THE INVESTMENTGRADE MARKET WAS LACKLUSTER ONE TRADER SAID INVESTORS SEEMED TO BE SITTING BACK UNTIL THE TREASURY MARKET CALMS DOWN INVESTORS ALSO ARE WAITING FOR THE RELEASE OF THE EMPLOYMENT NUMBERS HE SAID PRICES IN THE JUNKBOND MARKET DROPPED BY ABOUT A POINT ACROSS THE BOARD IN SYMPATHY WITH THE TREASURY AND STOCK MARKETS TRADERS SAID POSITIONSQUARING AND THE REVERSAL OF TECHNICAL TRADES HURT TREASURYS ALLOWING MORTGAGE SECURITIES TO OUTPERFORM GOVERNMENTS AGAIN MORTGAGE PASSTHROUGHS AS THE SECURITIES IN THE SECONDARY MARKET ARE KNOWN ALSO WERE HELPED BY DEMAND FROM WALL STREET AS DEALERS NEEDED COLLATERAL TO BACK RECENTLY ANNOUNCED REAL ESTATE INVESTMENT CONDUITS INCLUDING UPSIZINGS TO EXISTING DEALS OVER 24 BILLION IN NEW REMIC PAPER WAS ANNOUNCED NEAR THE CLOSE OF TRADE ALL COUPONS IN CURRENT PRODUCTION BY MORTGAGE BANKERS WERE OFF BUT HIGHER COUPONS WERE FLAT TO UP 2/32 GINNIE MAE 6 1/2S FOR NOVEMBER DELIVERY ARE DOWN 10/32 AT 99 13/32 FREDDIE MAC GOLD 6 1/2S AND FANNIE MAE 6 1/2S BOTH FOR NOVEMBER DELIVERY ARE DOWN 9/32 AT 99 21/32 AND 99 13/32 RESPECTIVELY AMONG HIGHER COUPONS GINNIE MAE 8S WERE UP 3/32 AT 105 7/32 MORTGAGE PLAYERS ALSO WERE ENCOURAGED BY THE MORTGAGE BANKERS ASSOCIATION REPORT THAT ITS INDEX OF HOMEOWNER REFINANCING ACTIVITY DROPPED TO 13757 IN THE WEEK ENDED OCT 29 FROM A REVISED 13962 THE PREVIOUS WEEK THE MBA SAID THE EFFECTIVE RATE ON A CONVENTIONAL 30YEAR MORTGAGE WAS 720 UP 10 BASIS POINTS FROM A WEEK EARLIER ROBERT MCGOUGH AND THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9311050122 931105 DAIMLER OFFICIALS PLAN TO MEET STATE LEADERS ON AVERTING JOB CUTS KIEL GERMANY REPRESENTATIVES OF DAIMLERBENZ AG AND THE SUPERVISORY BOARD OF ITS DEUTSCHE AEROSPACE AG UNIT WILL MEET WITH GOVERNMENT HEADS OF FIVE GERMAN STATES NOV 12 TO DISCUSS JOB CUTS THE CHIEFS OF SCHLESWIGHOLSTEIN BAVARIA BADEN WUERTTEMBERG HAMBURG AND LOWER SAXONY WILL MEET WITH THE COMPANY REPRESENTATIVES TO DISCUSS ALTERNATIVES TO THE RECENTLY ANNOUNCED PLAN TO CUT ONEFIFTH OF THE STAFF AT DEUTSCHE AEROSPACE BY 1996 ACCORDING TO THE GOVERNMENT OF SCHLESWIGHOLSTEIN IN THE WAKE OF DEUTSCHE AEROSPACE'S OCT 20 ANNOUNCEMENT STATE LEADERS HAVE MADE DIRE PREDICTIONS FOR THE ECONOMIC IMPACT OF THE JOBCUTTING PLAN WHICH INCLUDES THE CLOSURE OF SIX DOMESTIC PRODUCTION SITES BAVARIA'S ECONOMIC MINISTER OTTO WIESHEU SAID YESTERDAY THAT THE MOVE WOULD LEAD TO A LOSS OF A FURTHER 40000 TO 60000 JOBS IN GERMANY'S AIRLINE PRODUCTION AND DEFENSE INDUSTRIES UNLESS GOVERNMENT EXPORT POLICIES ARE EASED 9311050121 931105 LOANS FOR DISADVANTAGED GO TO THE ADVANTAGED BY JOHN R EMSHWILLER AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL CAN THE GOVERNOR OF ARKANSAS AND A FORMER STAR NATIONAL FOOTBALL LEAGUE QUARTERBACK BORROW MONEY UNDER A GOVERNMENTBACKED LOAN PROGRAM DESIGNED FOR DISADVANTAGED BUSINESS PEOPLE WHEN IT COMES TO THE FEDERAL SMALL BUSINESS INVESTMENT COMPANY PROGRAM THE ANSWER IS YES UNDER THE SBIC PROGRAM A COMPANY THAT WAS SUPPOSED TO LEND ONLY TO THE DISADVANTAGED MADE A 150000 LOAN IN 1986 TO A BUSINESS CONTROLLED BY JIM GUY TUCKER WHO BECAME THE GOVERNOR OF ARKANSAS LAST YEAR AFTER PRESIDENT CLINTON'S ELECTION THE SAME SBIC FIRM ALSO MADE A LOAN TO ARKANSAS BUSINESSWOMAN SUSAN MCDOUGAL SHE AND HER HUSBAND JAMES WERE FRIENDS AND ONETIME BUSINESS PARTNERS OF THE CLINTONS IN A REALESTATE DEVELOPMENT VENTURE IN A SIMILAR BUT UNRELATED SET OF TRANSACTIONS AN ALABAMA SBIC LENDER TO THE DISADVANTAGED MADE HUNDREDS OF THOUSANDS OF DOLLARS OF LOANS TO POSSIBLY UNQUALIFIED BORROWERS INCLUDING FORMER NFL STAR KEN STABLER GOV TUCKER AND MR STABLER DENY ANY WRONGDOING OR EVEN ANY KNOWLEDGE THAT THEY WERE RECEIVING FUNDS RESERVED FOR DISADVANTAGED BUSINESS PEOPLE MRS MCDOUGAL COULDN'T BE REACHED FOR COMMENT BUT HER FATHER HAS SAID SHE DOESN'T WANT TO DISCUSS THE 300000 LOAN SHE OBTAINED THE QUESTIONS RAISED BY THE LOANS TO MR TUCKER AND THE OTHERS HELP EXPLAIN WHY THE SMALL BUSINESS ADMINISTRATION IS IN THE PROCESS OF OVERHAULING THE SBIC PROGRAM WHICH HAS BEEN PLAGUED BY FINANCIAL PROBLEMS AND SCANDALS IN THE PAST SEVERAL YEARS UNDER THE SBIC PROGRAM HUNDREDS OF PRIVATELY OWNED COMPANIES HAVE BEEN SET UP TO HELP FINANCE SMALL BUSINESSES WITH A COMBINATION OF PRIVATE CAPITAL AND FEDERAL FUNDS CURRENTLY THAT POOL OF FUNDS STANDS AT ABOUT 32 BILLION ABOUT 900 MILLION OF THAT HAS BEEN RAISED BY SELLING PUBLIC DEBENTURES THAT ARE GUARANTEED BY THE FEDERAL GOVERNMENT A BIG CHUNK OF THE SBIC MONEY NEARLY 550 MILLION IS SUPPOSED TO GO ONLY TO CITIZENS WHO ARE SOCIALLY OR ECONOMICALLY DISADVANTAGED THAT MONEY IS HANDLED BY SPECIALIZED SBICS WHOSE SOLE FUNCTION IS TO LEND OR INVEST MONEY IN SMALL BUSINESSES OWNED BY DISADVANTAGED BUSINESS PEOPLE TRADITIONALLY IN THE FEDERAL LEXICON DISADVANTAGED HAS ALMOST ALWAYS REFERRED TO NONWHITES BUT SBA RULES ALLOW SPECIALIZED SBICS TO LEND TO WHITES IF THE WHITES CAN PROVE ECONOMIC DISADVANTAGE HOWEVER THE SBA DEFINITION OF THAT CONDITION IS MURKY FOR INSTANCE ONE CRITERION SAYS THE PERSON SHOULD BE LOW INCOME BUT ISN'T MORE SPECIFIC INABILITY TO COMPETE EFFECTIVELY BECAUSE OF CURRENT OR PAST RESTRICTIVE PRACTICES IS ANOTHER TEST WITH NO FURTHER DEFINITION SOMEWHERE AMONG THESE FUZZY DEFINITIONS IS THE PLACE WHERE THE QUARTERBACK THE GOVERNOR AND A NUMBER OF OTHER WELLTODO WHITE PEOPLE CAN BE FOUND IN ARKANSAS SBA AND OTHER FEDERAL INVESTIGATORS ARE POKING THROUGH THE RUBBLE OF A FAILED SPECIALIZED SBIC KNOWN AS CAPITAL MANAGEMENT SERVICES INC FIRMS IN WHICH MR TUCKER HAD AN OWNERSHIP INTEREST RECEIVED AT LEAST 300000 IN LOANS FROM CAPITAL MANAGEMENT IN FEBRUARY 1986 ONE FIRM CONTROLLED BY MR TUCKER CASTLE SEWER & WATER CORP OBTAINED A 150000 LOAN TO BUY A SUBURBAN LITTLE ROCK SEWER AND WATER SYSTEM FROM MADISON FINANCIAL CORP A UNIT OF MADISON GUARANTY SAVINGS & LOAN A NOWDEFUNCT THRIFT THAT WAS HEADED BY JAMES MCDOUGAL THE CLINTON ASSOCIATE GOV TUCKER INSISTS THAT HE NEVER APPLIED FOR A LOAN AS A DISADVANTAGED PERSON AND THAT HE NEVER KNEW THAT SUCH LOAN WAS THE ONLY TYPE THAT CAPITAL MANAGEMENT COULD LEGALLY MAKE AT THE TIME OF THE LOAN MR TUCKER A GRADUATE OF HARVARD COLLEGE AND THE UNIVERSITY OF ARKANSAS LAW SCHOOL WAS PRACTICING LAW AND PURSUING VARIOUS BUSINESS INTERESTS HE HAD ALREADY BEEN STATE ATTORNEY GENERAL AND SERVED A TERM IN CONGRESS IN THE 1970S HE WAS ELECTED LIEUTENANT GOVERNOR IN 1990 IF THERE WAS ANY RULE VIOLATED I'M UNAWARE OF IT SAYS GOV TUCKER I HAVE NEVER HEARD THE TERM SPECIALIZED SBIC IN MY LIFE HE BLAMES ANY IRREGULARITIES ON DAVID HALE WHO AT THE TIME WAS PRESIDENT OF CAPITAL MANAGEMENT MR HALE WAS RECENTLY INDICTED ON FEDERAL FRAUD CHARGES UNRELATED TO THE LOANS CAPITAL MANAGEMENT'S 300000 LOAN TO MRS MCDOUGAL'S BUSINESS A REALESTATE FIRM CALLED MASTER MARKETING ALSO OCCURRED IN 1986 IT ISN'T KNOWN HOW THOSE FUNDS WERE USED THOUGH THE WASHINGTON POST REPORTED EARLIER THIS WEEK THAT SOME OF THE MONEY WENT TO BUY LAND FOR WHITEWATER DEVELOPMENT CORP THE CLINTON/MCDOUGAL OZARK MOUNTAINS REALESTATE VENTURE AFTER A FEW MONTHS THE LAND WAS TRANSFERRED TO A MCDOUGALCONTROLLED COMPANY CAPITAL MANAGEMENT'S MR HALE CLAIMS HE MADE THE TUCKER AND MCDOUGAL LOANS AS FAVORS TO FRIENDS AND IN THE CASE OF MRS MCDOUGAL AFTER LOBBYING BY MR CLINTON WHITE HOUSE OFFICIALS SAY THE PRESIDENT DOESN'T RECALL EVER DISCUSSING THE LOAN WITH MR HALE IT WAS OBVIOUS THEY DIDN'T QUALIFY FOR DISADVANTAGED STATUS SAYS MR HALE BUT THEY WERE IN DEEP TROUBLE AND IF YOU'VE GOT A FRIEND YOU'VE GOT TO SAVE HIM MR HALE A MUNICIPAL JUDGE IN LITTLE ROCK UNTIL HIS INDICTMENT IN SEPTEMBER DENIES DEFRAUDING THE SBA HE BLAMES CAPITAL MANAGEMENT'S DOWNFALL PARTLY ON THE LOAN TO SUSAN MCDOUGAL AND ON TWO TUCKER LOANS AIDES TO PRESIDENT CLINTON AND GOV TUCKER HAVE SUGGESTED THAT MR HALE HAS BEEN RAISING QUESTIONS ABOUT THEIR RESPECTIVE FINANCIAL DEALINGS IN A QUEST FOR A PLEA BARGAIN MARTIN TECKLER DEPUTY GENERAL COUNSEL FOR THE SBA SAYS THE AGENCY IS TRYING TO TRACE THE FLOW OF CAPITAL MANAGEMENT'S FUNDS AND IS SCRUTINIZING LOAN DOCUMENTS TO DETERMINE WHETHER BORROWERS ACTUALLY QUALIFIED AS SOCIALLY OR ECONOMICALLY DISADVANTAGED HE SAYS THAT SBA OFFICIALS HAVEN'T YET COME TO ANY CONCLUSIONS ON GOV TUCKER OR MRS MCDOUGAL RULE VIOLATIONS CAN LEAD TO A SUSPENSION OR REVOCATION OF AN SBIC'S OPERATING LICENSE CRIMINAL PENALTIES CAN BE IMPOSED ON BORROWERS IF THEY WILLFULLY MISREPRESENT THEMSELVES AS BEING DISADVANTAGED SBA OFFICIALS SAY THE SBA ALSO HAS RAISED QUESTIONS ABOUT THE LOANS MADE BY ALABAMA CAPITAL CORP TO MR STABLER AND OTHER WHITE BUSINESS OWNERS MR STABLER WHO FOR YEARS WAS A STAR QUARTERBACK WITH THE OAKLAND RAIDERS AND OTHER PRO TEAMS IS CURRENTLY A TELEVISION SPORTS COMMENTATOR AND A CELEBRITY SPOKESPERSON FOR VARIOUS COMPANIES HE'S ALSO A BUDDING ENTREPRENEUR WITH PLANS TO OPEN A SMALL RESTAURANT IN AN OLD VICTORIAN HOUSE IN MOBILE ALA IN MARCH 1992 MR STABLER'S COMPANY STABLER CO RECEIVED A 75000 LOAN TOWARD THAT PROJECT FROM ALABAMA CAPITAL A SPECIALIZED SBIC BASED IN MOBILE LAST JANUARY MR STABLER RECEIVED TWO MORE LOANS TOTALING 100000 FROM ALABAMA CAPITAL ONE LOAN WAS USED TO PAY OFF A 75000 INTERNAL REVENUE SERVICE TAX LIEN MR STABLER SAYS HE ISN'T FAMILIAR WITH THE SBIC PROGRAM BUT DOESN'T CONSIDER HIMSELF DISADVANTAGED ECONOMICALLY OR OTHERWISE I WASN'T AWARE IT WAS A PROGRAM FOR DISADVANTAGED PEOPLE SAYS MR STABLER HE SAYS HE SIMPLY NEEDED FINANCING AND WAS INTRODUCED TO ALABAMA CAPITAL BY HIS ACCOUNTANT AN SBA EXAMINATION REPORT OF ALABAMA CAPITAL DATED SEPT 14 RAISED QUESTIONS ABOUT THE PROPRIETY OF THE LOANS TO MR STABLER AND SEVERAL OTHER BUSINESS PEOPLE INCLUDING ONE WHITE MAN WHO THE EXAMINATION REPORT SAID HAD A PERSONAL FINANCIAL STATEMENT SHOWING A NET WORTH OF MORE THAN 1 MILLION ACCORDING TO THE SBA REPORT ALABAMA CAPITAL JUSTIFIED THE STABLER LOANS PARTLY ON THE GROUNDS THAT MR STABLER WAS BURDENED BY THE IRS TAX LIEN MICHAEL DE LANEY VICE PRESIDENT OF ALABAMA CAPITAL SAYS HE COULDN'T COMMENT ON THE LOANS HOWEVER IN A LETTER LATE LAST YEAR TO THE SBA THE COMPANY'S PRESIDENT DAVID DE LANEY MICHAEL'S BROTHER STAUNCHLY DEFENDED THE COMPANY'S LENDING PRACTICES HE ARGUED THAT BECAUSE SMALL BUSINESSES HAVE DIFFICULTY BORROWING MONEY MANY ENTREPRENEURS ARE IN A DISADVANTAGED STATUS AS PART OF ITS SBIC REFORMS THE SBA IS RECONSIDERING ITS DEFINITION OF ECONOMICALLY DISADVANTAGED SAYS AN AGENCY SPOKESMAN HE SAYS THE SBA HAS SEVERAL TIMES IN THE PAST ASKED CONGRESS FOR MORE SPECIFIC GUIDANCE BUT HAS NEVER GOTTEN IT 9311050120 931105 LETTERS TO THE EDITOR THE REAL TONI MORRISON HEATHER MAC DONALD IN HER OCT 14 EDITORIAL PAGE ESSAY THE OTHER TONI MORRISON MISREADS TONI MORRISON'S LITERARY AND CULTURAL CRITICISM IN AN EFFORT TO DISCREDIT MS MORRISON AS A CRITIC MS MAC DONALD PRESENTS POINTEDLY MISLEADING AND DISTORTED SUMMARIES OF MS MORRISON'S WORK HER BIZARRE PRECIS OF MS MORRISON'S COMMENTS ON HUCKLEBERRY FINN IS TYPICAL AS IS HER SNIDE SUPERCILIOUS TONE MS MORRISON IS NOT AVERSE TO REWRITING PLOTS TO FIT HER THESIS SHE ARGUES THAT THE SLAVE JIM CANNOT BE FREED AT THE END OF MARK TWAIN'S HUCKLEBERRY FINN' BECAUSE HUCK'S FREEDOM DEPENDS ON JIM'S ENSLAVEMENT APPARENTLY THE FACT THAT JIM IS INDEED FREE AT THE END OF THE STORY TO NO NOTICEABLE LOSS OF HUCK'S AUTONOMY IS IRRELEVANT CLEARLY MS MAC DONALD IS NOT AVERSE TO REWRITING THE RECORD TO FIT HER THESIS MS MORRISON'S COMMENTS ON THE NOVEL REFER TO THE KEY MOMENT WHEN HUCK AND JIM PASS CAIRO IN THE FOG THE MOMENT WHEN TWAIN SCUTTLES THE QUEST FOR FREEDOM THAT HAS PROPELLED HIS NARRATIVE FORWARD BY FAILING AS MS MORRISON PUT IT TO LET JIM GO FREE TO LET HIM ENTER THE MOUTH OF THE OHIO RIVER AND PASS INTO FREE TERRITORY THE FACT THAT TWAIN PULLS OUT A DEUS EX MACHINA LASTMINUTE FREEDOM FOR JIM IN THE FINAL PAGES OF THE BOOK MISS WATSON FREES HIM IN HER WILL DOES NOTHING TO COUNTER THE FACT THAT TWAIN DOES NOT ALLOW HUCK AND JIM TO REALIZE THROUGH THEIR OWN EFFORTS THE PASSAGE TO FREEDOM THAT WAS THEIR OSTENSIBLE GOAL CRITICS LOUIS J BUDD AND TONY TANNER FIRST SUGGESTED NEARLY 30 YEARS AGO THAT THE ABANDONMENT OF THE QUEST FOR FREEDOM AND THE ORNATE REENSLAVEMENT OF JIM ON THE PHELPS FARM WHAT MORRISON REFERS TO AS THE FATAL ENDING OF THE NOVEL MIGHT BE A COMMENTARY ON AMERICAN RACE RELATIONS IN THE POSTRECONSTRUCTION SOUTH SCHOLARS INCREASINGLY UNDERSTAND THE LAST THIRD OF THE NOVEL AS A SATIRE ON THE WAY THE US BOTCHED THE ENTERPRISE OF FREEING ITS SLAVES OF COURSE MS MORRISON KNOWS THAT JIM IS INDEED FREE AT THE END OF THE STORY FREE BY A TECHNICALITY BUT WHAT IS THE NATURE OF THAT FREEDOM THAT IS A QUESTION TWAIN COMPELS US TO ASK MS MORRISON ELOQUENTLY ACCEPTS HIS INVITATION FAR FROM BEING THE CARELESS READER MS MAC DONALD WOULD HAVE US BELIEVE HER TO BE MS MORRISON IS A SUBTLE SENSITIVE CRITIC WHO ADDRESSES ISSUES AT THE CENTER OF CURRENT LITERARY AND CRITICAL DEBATES MS MAC DONALD RIDICULES MS MORRISON FOR HAVING COMMENTED THAT THE IDEALS UPON WHICH AMERICA WAS FOUNDED WERE PERMANENTLY ALLIED WITH THE HIERARCHY OF RACE AND CHARGES HER WITH BEING OBLIVIOUS TO THE IMPORTANCE OF THOSE IDEALS IN THE FIGHT AGAINST SLAVERY AND SEGREGATION WHY DOES MS MAC DONALD FAIL TO SEE THAT ONE CAN ACKNOWLEDGE THE COMPLEXITIES OF HISTORY WITHOUT REJECTING THE IDEALS THEMSELVES PERHAPS MS MAC DONALD IS IGNORANT OF THE EXTENT TO WHICH THE BASIC POINT MS MORRISON IS MAKING HAS BECOME ALMOST A COMMONPLACE AMONG SCHOLARS IN FIELDS AS DIVERSE AS SOCIOLOGY POLITICAL PHILOSOPHY AND LAW ORLANDO PATTERSON IN FREEDOM JUDITH N SHKLAR IN CITIZENSHIP THE QUEST FOR INCLUSION AND DERRICK BELL IN FACES AT THE BOTTOM OF THE WELL THE PERMANENCE OF RACISM ARE JUST A FEW OF THE MANY SCHOLARS WHO HAVE ADDRESSED THIS ISSUE THEIR GOAL AND MS MORRISON'S IS NOT TO GET RID OF IDEALS OF LIBERTY EQUALITY AND THE RIGHTS OF MAN AS MS MAC DONALD ASSERTS BUT RATHER TO NARROW THE GAPS BETWEEN OUR IDEALS AND OUR REALITY AFTER READING MS MAC DONALD'S ESSAY I READ AYN RAND'S 1963 ESSAY RACISM FROM THE VIRTUE OF SELFISHNESS RAND PRESENTED A RATIONAL DISCOURSE ABOUT THE EVIL OF RACISM THAT BY ITS VERY NATURE DIMINISHES THE SIGNIFICANCE OF THE INDIVIDUAL RAND WARNED DO NOT BECOME VICTIMS OF THE SAME RACISTS BY SUCCUMBING TO RACISM MS MAC DONALD SIMILARLY CAUTIONS THE CASUAL THINKER BY ILLUSTRATING MS MORRISON'S OWN NARROW VIEW OF AMERICA THE ALLTOOTYPICALLY CYNICAL AND PESSIMISTIC ONE IF AMERICA IS SUCH A WASTELAND DEVOID OF MORALITY OF CULTURALLY INHERENT RACISM THEN WHY NOT FOCUS ATTENTION UPON THE MORALITY OF INDIVIDUAL RIGHTS OR THE CONTENT OF ONE'S CHARACTER BY WHICH ALL INDIVIDUALS SHOULD BE JUDGED NOT SURPRISINGLY THE VERY SUPPORTERS OF CIVIL RIGHTS ARE DEEPLY ENTRENCHED IN THE MULTICULTURALISM MOVEMENT TODAY RARELY DOES THIS NEW SEGREGATION AFFORD THE INDIVIDUAL'S GLORIFICATION RATHER THE CULTURE IDENTIFIED MORE OFTEN BY PHYSICAL TRAITS THAN CUSTOM OR LANGUAGE RECEIVES THE PRAISE AND ADULATION IN THE SIMPLEST WAY MS MORRISON HAS WHITTLED AWAY AT AMERICA AND FOUND NOTHING BUT SKIN PIGMENTATION THE INTELLECTUALS OF OUR DAY SHOULD LISTEN CAREFULLY TO THE VERY IDEAS THEY PEN OR UTTER BECAUSE THE WINDS OF CHANGE THAT ONCE STOOD FOR PROGRESS WILL SOON BLOW BACK INTO THEIR FACES 9311050119 931105 LETTERS TO THE EDITOR SERBIAN OUTRAGES AGAINST ALBANIANS THE LETTER FROM EIGHT PROMINENT SERBIANAMERICAN SCHOLARS ON YOUR SEPT 21 EDITORIAL PAGE IS A SPIRITED DEFENSE OF THE RIGHT OF SERBS IN BOSNIA TO SECEDE FROM THAT COUNTRY AND FORM THEIR OWN AUTONOMOUS GOVERNMENT AS THE WRITERS OBSERVED WHAT IS GOOD FOR THE GOOSE CROATS AND SLOVENIANS IN YUGOSLAVIA SHOULD BE GOOD FOR THE GANDER SERBS IN BOSNIA VERY WELL ALMOST TWO MILLION ETHNIC ALBANIANS LIVE IN THE FORMERLY AUTONOMOUS SERBIANOCCUPIED PROVINCE OF KOSOVA THESE ALBANIANS HAVE BEEN SUBJECTED TO EVERY KIND OF OUTRAGE BY THE SERBIAN GOVERNMENT IN BELGRADE THEIR FREELY ELECTED PARLIAMENT WAS DISSOLVED AND ITS MEMBERS HOUNDED INTO EXILE SERBIAN ARMOR PATROL THE STREETS SERBIAN SOLDIERS GUN DOWN ALBANIANS AND ETHNIC ALBANIANS HAVE BEEN DRIVEN FROM THE UNIVERSITY THE HOSPITALS AND THE PROFESSIONS HUMAN RIGHTS ORGANIZATIONS ALL OVER THE WORLD PLUS THE US CONGRESS AND THE EUROPEAN PARLIAMENT HAVE CONDEMNED THIS CONTINUING SERBIAN OPPRESSION PERHAPS IT IS TIME FOR THE ALBANIANS OF KOSOVA TO DO JUST WHAT THE SERBS OF KRAJINA DID GET OUT OF A COUNTRY THEY FIND TO PUT IT MILDLY INHOSPITABLE HOWEVER NOT ONE OF THE SERBIANAMERICANS WHO DEFENDED SERBIA ON THIS PAGE WOULD BE CAUGHT DEAD AGREEING TO LET THE KOSOVA ALBANIANS EXERCISE THE SAME RIGHT OF SECESSION THAT THEY SO STOUTLY DEFENDED FOR THEIR SERBIAN BRETHREN IN BOSNIA AND CROATIA THAT SHAMEFUL AND HYPOCRITICAL REFUSAL MAKES A MOCKERY OF THEIR ENTIRE DEFENSE OF THE SERBS 9311050117 931105 LETTERS TO THE EDITOR WE'RE YOUR BROTHERS NOT AN INTEREST GROUP YOUR SEPT 21 ARTICLE UNFAIRLY CRITICIZED HAROLD ICKES'S ROLE IN ASSISTING THE ADMINISTRATION OF PUERTO RICO'S GOV ROSELLO TO PRESENT ITS POSITION TO CONGRESS CONCERNING THE SECTION 936 TAX PROGRAM DURING THE PASSAGE OF PRESIDENT CLINTON'S TAX BILL AS DIRECTOR OF THE OFFICE OF PUERTO RICO IN WASHINGTON WHAT TROUBLES ME MOST ABOUT THE ARTICLE IS THE INSENSITIVITY TO THE ISLAND'S ECONOMIC PROBLEMS AND ITS 36 MILLION AMERICAN CITIZENS ATTEMPTING TO REDUCE THE SUBSTANTIAL INTEREST OF MILLIONS OF PUERTO RICANAMERICANS TO SOMETHING IN THE NATURE OF A SPECIAL INTEREST GROUP IS TRULY DEMEANING AND PARTICULARLY OFFENSIVE WHEN ONE ANALYZES THE SERIOUS SOCIAL AND ECONOMIC REPERCUSSIONS OF MASSIVE CUTS IN THE 936 TAX PROGRAM AS ORIGINALLY OUTLINED IN THE TAX PACKAGE HUNDREDS OF COMMUNITY BUSINESS POLITICAL AND SOCIAL LEADERS CARRIED A UNIFIED MESSAGE TO WASHINGTON NAMELY THAT PUERTO RICO AS PART OF THE US WAS CERTAINLY WILLING TO SHARE PROPORTIONATELY IN THE PRESIDENT'S CALL FOR ECONOMIC SACRIFICE THE ORIGINAL TAX PROPOSAL HOWEVER WAS FAR FROM A FAIR AND EQUITABLE DEAL FOR THE CITIZENS OF THE ISLAND A DAY WILL COME WE HOPE SOON WHEN PUERTO RICANS ARE NO LONGER SEEN AS A SPECIAL INTEREST GROUP WE ARE AMERICAN CITIZENS READY TO PARTICIPATE WITH THE NATION IN BUILDING A BETTER TOMORROW FOR OUR CHILDREN 9311050115 931105 ANGRY CUSTOMERS SAY DAUPHIN DEPOSIT RENEGED ON HIGHYIELDING IRA ACCOUNTS BY RANDY MYERS SPECIAL TO THE WALL STREET JOURNAL HARRISBURG PA A PENNSYLVANIA BANK IS ENTANGLED WITH STATE REGULATORS OVER A GENEROUS BANK ACCOUNT THAT THE BANK FOUND TURNED OUT TO BE TOO GENEROUS IN THE EARLY 1980S DAUPHIN DEPOSIT BANK & TRUST CORP BEGAN OFFERING AN 18MONTH VARIABLE RATE INDIVIDUAL RETIREMENT ACCOUNT THAT GUARANTEED TO PAY A MINIMUM INTEREST RATE OF 10 ACCORDING TO REGULATORS THE BANK TOLD CONSUMERS THAT THE ACCOUNTS WERE AUTOMATICALLY RENEWABLE EVERY 18 MONTHS A DECISION THAT HAS PROVED EXPENSIVE TO SAY THE LEAST ALTHOUGH INTEREST RATES HAVE TUMBLED MANY CUSTOMERS HAVE CLUNG TO AND RENEWED THE HIGHYIELDING INVESTMENTS TODAY DAUPHIN DEPOSIT IS OFFERING 18MONTH CERTIFICATES OF DEPOSIT PAYING JUST 3 INTEREST TO EASE ITS LOSSES THE BANK A UNIT OF DAUPHIN DEPOSIT CORP ON JAN 1 BEGAN CHARGING A HALFPERCENTAGE POINT SERVICE FEE FOR THE 10 IRA ACCOUNTS WITH BALANCES EXCEEDING 35000 AND IT ALSO BEGAN CHARGING A 3 FEE ON FUNDS ROLLED INTO THE IRAS FROM OTHER RETIREMENT PLANS ANGRY ACCOUNT HOLDERS COMPLAINED TO THE STATE BANKING DEPARTMENT ARGUING THAT DAUPHIN DEPOSIT HAD PROMISED THEM THE ACCOUNTS WOULD CARRY NO FEES THE MATTER ENDED UP AT THE BUREAU OF CONSUMER PROTECTION PART OF THE STATE ATTORNEY GENERAL'S OFFICE RENARDO HICKS DIRECTOR OF THE BUREAU SAYS OFFICIALS ASKED THE BANK TO VOLUNTARILY REFUND THE FEES WHICH IT ESTIMATES AT HUNDREDS OF THOUSANDS OF DOLLARS BUT THE BANK DECLINED WE WILL HAVE TO TAKE FORMAL LEGAL ACTION MR HICKS SAID YESTERDAY HE ESTIMATES THAT ABOUT 1200 OF THE MORE THAN 5000 HIGHYIELDING IRA ACCOUNTS HAVE BALANCES IN EXCESS OF 35000 THE DISPUTE ABOUT THE FEES SUGGESTS THERE'S A SERIOUS QUESTION OF VIOLATING THE STATE'S UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION ACT SAID MR HICKS WE'RE TALKING ABOUT IRAS ABOUT PEOPLE WHO INVESTED INTENDING TO RETIRE ON WHAT THEY PUT INTO THESE ACCOUNTS WITH AN EXPECTATION OF A LONGTERM OPPORTUNITY FOR INTEREST MR HICKS SAID TO EVEN SUGGEST THAT WHAT WAS MARKETED FOR THOSE KINDS OF OPPORTUNITIES CAN NOW BE SIGNIFICANTLY MODIFIED OR MODIFIED IN A WAY INCONSISTENT WITH THOSE EARLIER REPRESENTATIONS IS TROUBLING HE SAID HIS DEPARTMENT UNDERSTOOD THAT MORE THAN 400000 IN SUCH FEES HAD BEEN CHARGED SINCE THE BEGINNING OF THIS YEAR ALTHOUGH FIRM FIGURES WEREN'T AVAILABLE DENNIS DINGER DAUPHIN DEPOSIT'S CHIEF FINANCIAL OFFICER DECLINED TO COMMENT AS DID THE COMPANY'S LEGAL COUNSEL WHO SAID THE ISSUE WAS LIKELY TO BE IN LITIGATION MR HICKS SAID PENNSYLVANIA'S UNFAIR TRADE ACT PROVIDES FOR FINES OF UP TO 1000 PER VIOLATION RESTITUTION TO CONSUMERS WHERE APPLICABLE AND INJUNCTIVE RELIEF AN AMERICAN BANKERS ASSOCIATION SPOKESWOMAN SAID SHE WAS UNAWARE OF ANY OTHER BANKS THAT HAVE BEEN SADDLED WITH HIGHYIELDING DEPOSITS SIMILAR TO THOSE AT DAUPHIN DEPOSIT 9311050114 931105 TECHNOLOGY VANGUARD TO INVEST AT LEAST 30 MILLION IN GEOTEK INDUSTRIES MONTVALE NJ GEOTEK INDUSTRIES INC ANNOUNCED AN INVESTMENT OF AT LEAST 30 MILLION FROM VANGUARD CELLULAR SYSTEMS INC BOOSTING ITS EFFORTS TO DEPLOY A WIRELESS SERVICE USING UNUSUAL ISRAELI DEFENSE TECHNOLOGY THE ANNOUNCEMENT COMES ON THE HEELS OF NEWS EARLIER THIS WEEK THAT GEORGE SOROS AND OTHER INVESTORS WOULD INJECT 40 MILLION IN GEOTEK ALTHOUGH GEOTEK'S STOCK WAS HALTED FOR PART OF YESTERDAY THE COMPANY'S SHARES ROSE 1625 OR 12 TO CLOSE AT 1525 IN NASDAQ STOCK MARKET TRADING VANGUARD WILL BUY 30 MILLION IN GEOTEK SHARES AND HAS OPTIONS TO INVEST AN ADDITIONAL 167 MILLION AT VARIOUS STAGES OVER THE NEXT THREE YEARS IF VANGUARD EXERCISES ALL ITS RIGHTS UNDER THE PACT IT WILL EVENTUALLY OWN 20 OF GEOTEK ON A DILUTED BASIS GEOTEK IS PLANNING TO BUILD A WIRELESS NETWORK ALONG THE NORTHEAST CORRIDOR AND MAINLY SELL ITS SERVICES TO COMPANIES WITH FLEETS OF VEHICLES GEOTEK'S SYSTEM USES DIGITAL TECHNOLOGY THAT ALLOWS MANY MORE CONVERSATIONS TO BE CARRIED ON A SINGLE CHANNEL THAN THE TRADITIONAL CELLULAR TECHNOLOGY OF THE VENGUARD HAS GEOTEK LATER PLANS TO EXPAND TO OTHER US CITIES AS WELL AS OVERSEAS WE CAN HELP GEOTEK JUMP START ITS BUSINESS SAID STEVE LEEOLOU CHIEF OPERATING OFFICER OF VANGUARD HE NOTED THAT GEOTEK DOESN'T HAVE A SUBSTANTIAL OPERATING MANAGEMENT TEAM AND COULD BENEFIT FROM VANGUARD'S EXPERIENCE IN ADMINISTERING OPERATING AND MARKETING WIRELESS SERVICES VANGUARD BASED IN GREENSBORO NC IS ONE OF THE LARGEST INDEPENDENT OPERATORS OF CELLULAR SYSTEMS AND EXPECTS REVENUE OF 115 MILLION IN 1993 ITS NORTHEAST PRESENCE MAINLY IN THE NEW YORKPHILADELPHIAWASHINGTON CORRIDOR INCLUDES ABOUT 120000 SUBSCRIBERS 9311050113 931105 MARKETING & MEDIA ADVERTISING PRODIGY TAKES HIGHRISK GAMBLE WITH SERIES OF LIVE COMMERCIALS BY KEVIN GOLDMAN IN AN ADVERTISING CAMPAIGN THAT DARES TO CHALLENGE MURPHY'S LAW THE PRODIGY ONLINE COMPUTER NETWORK PLANS TO START RUNNING A SERIES OF LIVE COMMERCIALS MONDAY PRODIGY SAYS THE OBJECTIVE OF THE HALFMINUTE SPOTS IS TO SHOW POTENTIAL CUSTOMERS THAT THERE'S SOMETHING GOING ON RIGHT NOW ON PRODIGY THAT YOU CAN USE AND IS FUN BUT PRODIGY'S ADVERTISING STRATEGY IS A POTENTIALLY EMBARRASSING STUNT TO BREAK THROUGH THE AD CLUTTER WHAT IF SOMETHING GOES WRONG DURING THE LIVE COMMERCIALS COMPUTERS ARE NOTORIOUSLY TEMPERAMENTAL AND SUBJECT TO MECHANICAL MISFIRES ALSO THE ACTORS IN THE ADS COULD FLUB THEIR LINES SURE THERE'S RISK BUT IT'S A RISK WITH A POTENTIAL REWARD SAYS SCOTT KURNIT PRODIGY'S EXECUTIVE VICE PRESIDENT OF CONSUMER PRODUCTS MARKETING AND DEVELOPMENT ONCE THE WORD GETS OUT THAT PRODIGY IS UNDERTAKING LIVE COMMERCIALS VIEWERS MAY TUNE IN TO SEE WHETHER THE COMPANY CAN GET THROUGH THE 30 SECONDS BLOOPERFREE IN FACT SOME VIEWERS MAY WIND UP ROOTING FOR PRODIGY WHICH MAY LESSEN THE CHANCES THE SPOT WILL GET ZAPPED BY REMOTE CONTROL IN SOME INSTANCES THE ACTORS WON'T GET THE SCRIPTS UNTIL SECONDS BEFORE THE COMMERCIAL ACTUALLY IS AIRED MR KURNIT SAYS EACH AD WILL BE CUSTOMIZED TO THE SHOW IN WHICH IT IS APPEARING AND USUALLY WILL ADDRESS A SCENE THAT HAS IMMEDIATELY PRECEDED THE COMMERCIAL ABOUT ONE MILLION HOUSEHOLDS SUBSCRIBE TO PRODIGY A PARTNERSHIP BETWEEN SEARS ROEBUCK & CO AND INTERNATIONAL BUSINESS MACHINES BUT PRODIGY HAS YET TO TURN A PROFIT AFTER SPENDING AN ESTIMATED 800 MILLION OVER THE PAST EIGHT YEARS PRODIGY SAYS IT EXPECTS TO BE PROFITABLE NEXT YEAR PRODIGY IS SPENDING 6 MILLION OVER THE NEXT SIX WEEKS TO AIR APPROXIMATELY 280 COMMERCIALS 110 OF WHICH WILL BE LIVE ON BROADCAST AND CABLE NETWORKS MR KURNIT WHO JOINED PRODIGY IN JUNE FROM THE PREMIUMCABLE SHOWTIME CHANNEL EMPHASIZES THAT THE NUMBER OF LIVE ADS IS A FLUID SITUATION THAT MAY CHANGE PRODIGY IS AIMING ITS PITCH AT A HIGHLY SELECTIVE AUDIENCE NOT ONLY IS IT TARGETING PEOPLE WHO KNOW HOW TO USE COMPUTERS BUT IT ALSO IS SLICING THAT SEGMENT FURTHER TO THOSE WHO WANT TO TAP INTO AN ELECTRONIC BULLETIN BOARD THE FIRST LIVE PRODIGY COMMERCIAL IS SCHEDULED TO APPEAR WITHIN THE FIRST 45 MINUTES OF ABC'S MONDAY NIGHT FOOTBALL GAME MONDAY BETWEEN THE KANSAS CITY CHIEFS AND THE GREEN BAY PACKERS WE'LL WRITE PART OF THE AD ON THE FLY BASED ON WHAT YOU'VE JUST SEEN ON THE SCREEN SAYS MR KURNIT PRODIGY MAY FOR EXAMPLE ASK ITS SUBSCRIBERS TO VOTE ON A CALL A REFEREE MADE RIGHT BEFORE THE COMMERCIAL THE ADS WILL BE WRITTEN BY A CREATIVE TEAM FROM PRODIGY'S AD AGENCY WPP GROUP'S J WALTER THOMPSON AND THE LIVE SPOTS WILL BE FED FROM A MANHATTAN STUDIO THAT ALSO HOUSES NEW YORK 1 AN ALLNEWS CABLE CHANNEL LATER MONDAY EVENING PRODIGY ALSO WILL APPEAR ON THE CBS SERIES NORTHERN EXPOSURE BECAUSE THE EPISODE IS TAPED AND PRODIGY DOESN'T HAVE TO WAIT UNTIL THE LAST MINUTE TO WRITE A SCRIPT THE COMPANY HAS A TWIST ON THE LIVE ELEMENT THE SHOW'S PRODUCERS HAVE PROMISED PRODIGY THAT ONE OF ITS STARS WILL BE AVAILABLE SO PRODIGY SUBSCRIBERS CAN SIGN ON AND ASK THE CELEBRITY A QUESTION RESPONSES TO SOME OF THE QUESTIONS WILL ARRIVE VIA PRODIGY'S ELECTRONIC BULLETIN BOARD WITHIN A DAY OR SO OTHER SHOWS THAT WILL FEATURE LIVE ADS INCLUDE SPORTS CENTER ON ESPN MONEYLINE ON CNN MARKETWRAP ON CNBC SUCH BROADCAST SERIES AS LOVE AND WAR ON CBS AND FRASIER ON NBC AND MOVIES ON NBC USA AND LIFETIME LIVE TELEVISION OTHER THAN NEWS AND SPORTS IS RARELY DONE ANY LONGER AND LIVE COMMERCIALS ARE AS OUTDATED AS BLACKANDWHITE TELEVISION A RECENT EXCEPTION IN MAY 1992 EAGLE SNACKS A UNIT OF ANHEUSERBUSCH AIRED A LIVE SPOT FOR TORTILLA CHIPS DURING NBC'S TONIGHT SHOW FEATURING THE PRODUCT'S SPOKESMEN TONY RANDALL AND JACK KLUGMAN BUT THE SPOT AIRED ONLY ONCE ADS OF THIS NATURE PRESENT CERTAIN LOGISTICAL PROBLEMS SUCH AS GETTING TALENT TO THE RIGHT PLACE AT THE RIGHT TIME SAYS KEVIN BOWLER PRESIDENT OF EAGLE SNACKS THEY'RE ALSO INHERENTLY MORE RISKY BECAUSE THERE IS OBVIOUSLY NO OPPORTUNITY FOR RETAKES SO WE HAVE NO PLANS FOR DOING ANY MORE ADS ALTHOUGH WE WERE PLEASED WITH OUR EXPERIENCE AND IF THE RIGHT OPPORTUNITY PRESENTED ITSELF WE'D CONSIDER IT THERE IS NO SUCH HESITANCY ON THE PART OF PRODIGY HOWEVER WHILE MR KURNIT ADMITS THE UNDERTAKING IS A GAMBLE AND WAS APPROVED ONLY AFTER A LENGTHY INTERNAL DEBATE HE IS CONFIDENT THE SPOTS WILL RUN SMOOTHLY WE WANT TO MAKE OUR SUBSCRIBERS FEEL SPECIAL HE SAYS AND THOSE WHO AREN'T SUBSCRIBERS JEALOUS WE WANT TO CREATE THE IMAGE OF A SPECIAL CLUB MR KURNIT SAYS THE CAMPAIGN IS PART OF PRODIGY'S OVERALL STRATEGY TO ALLOW TELEVISION VIEWERS TO BECOME MORE INTERACTIVE THIS MONTH PRODIGY STARTED A NEW SERVICE WHICH ALLOWS ABOUT 20 CABLE NETWORKS TO PROMOTE ITS SHOWS AND CONDUCT POLLS THE SERVICES INCLUDE COMEDY CENTRAL DISCOVERY AND CNBC AND YESTERDAY PRODIGY SAID IT SIGNED THE NETWORKS FROM TURNER BROADCASTING SYSTEM INCLUDING CNN TO OFFER ITS NEW SERVICE AND PRODIGY IS LOOKING BEYOND THE INITIAL LIVE CAMPAIGN HOPING THE COMMERCIALS WILL EVOLVE WE HAVE GREAT HOPES FOR THIS CAMPAIGN HE SAYS IN THE FUTURE WE MAY WANT A CHILD TO APPEAR LIVE IN THE SPOTS WPP GROUP AND INTERPUBLIC GROUP OF COS ANNOUNCED THAT INTERPUBLIC IS BUYING MOST OF WPP'S MAJORITY HOLDINGS IN SCALI MCCABE SLOVES FOR 555 MILLION AS EXPECTED THE AGREEMENT FINALIZED LATE WEDNESDAY CALLS FOR AN IMMEDIATE CASH PAYMENT OF 349 MILLION ADDITIONAL FUTURE PAYMENTS AND ASSUMPTION OF DEBT VALUED AT UP TO 206 MILLION LONDONBASED WPP SAID THE SCALI SALE WHICH IS EXPECTED TO CLOSE IN DECEMBER REDUCES ITS BANK DEBT OF ABOUT 4892 MILLION BY 423 MILLION THE SCALI OPERATIONS SOLD TO INTERPUBLIC HAD REVENUE OF 73 MILLION AND A NET PRETAX LOSS OF 42 MILLION IN 1992 WPP SAID NOT INCLUDED IN THE SALE WERE SCALI'S ADVERTISING OPERATIONS IN GERMANY THE NETHERLANDS AND BRAZIL AS WELL AS A NEW YORK SALESPROMOTION AGENCY MORTON GOLDBERG ASSOCIATES AND SOME NEW YORK REAL ESTATE INTERPUBLIC'S LOWE GROUP SAID IT WILL MERGE SCALI'S NEW YORK OFFICE WITH LOWE GROUP'S NEW YORK OFFICE THE MERGER SET FOR THE END OF DECEMBER WILL RESULT IN A NEW NEW YORK AGENCY LOWE & PARTNERS SMS THE AGENCIES SAID THE MERGER DOESN'T CREATE ANY CLIENT CONFLICTS AS EXPECTED FRANK LOWE CHAIRMAN OF THE LOWE GROUP WILL TAKE ON THE SAME TITLE AT THE MERGED NEW YORK OFFICE MARVIN SLOVES CHAIRMAN AND CHIEF EXECUTIVE OF SCALI MCCABE WAS NAMED VICE CHAIRMAN OF THE LOWE GROUP AND WILL SIT ON ITS BOARD TOP EXECUTIVES AT LOWE'S NEW YORK OPERATIONS WILL RETAIN THEIR TITLES UNDER THE NEW STRUCTURE SAM SCALI PRESIDENT AND CREATIVE DIRECTOR AT SCALI MCCABE WAS NAMED DEPUTY CHAIRMAN OF NORTH AMERICAN OPERATIONS OF THE NEW AGENCY SEGA SEGA OF AMERICA A UNIT OF SEGA ENTERPRISES LTD NAMED A SECOND AGENCY PICKING THE SAN FRANCISCO OFFICE OF INTERPUBLIC GROUP'S MCCANNERICKSON TO HANDLE AN 8 MILLION TO 10 MILLION AD ASSIGNMENT AIMED AT CHILDREN FOR A NEW LINE OF ELECTRONIC TOYS OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN SAN FRANCISCO WHICH ALSO COMPETED FOR THE ACCOUNT CONTINUES TO HANDLE SEGA'S BIG COMPUTERGAME ADVERTISING ACCOUNT WHO'S NEWS FOOTE CONE & BELDING COMMUNICATIONS NAMED JOEL HOCHBERG TO BE EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF ITS LOS ANGELES OFFICE MR HOCHBERG WHO RESIGNED IN 1991 FROM A TOP MARKETING POSITION AT THE TWENTIETH CENTURY FOX MOVIE STUDIO ALSO WAS PRESIDENT OF THE CHICAGO OFFICE OF OMNICOM GROUP'S DDB NEEDHAM MR HOCHBERG 54 YEARS OLD SUCCEEDS RICH EDLER FOOTE CONE SAID MR EDLER RESIGNED TO PURSUE INDEPENDENT BUSINESS VENTURES 9311050112 931105 POLITICS & POLICY CUTTING CRIME MAY BE A PRIORITY AMONG VOTERS BUT FINDING A SOLUTION REMAINS AN ELUSIVE GOAL BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PUBLICOPINION POLLS AND TUESDAY'S ELECTION RETURNS DEMONSTRATE THAT AMERICANS ARE FED UP WITH LIVING IN THE MOST VIOLENT SOCIETY IN THE INDUSTRIALIZED WORLD AND WANT THEIR LEADERS TO DO SOMETHING ABOUT IT EASIER SAID THAN DONE NOTHING IS SIMPLE ABOUT CRIME IN AMERICA SURELY AMERICANS INSIST CRIME IS SOARING NOT SO THE CRIME RATE IN AMERICA IS ACTUALLY STABLE OR EVEN FALLING A LITTLE SURELY TOO THERE ARE WIDELY ACCEPTED WAYS OF DEALING WITH VIOLENT CRIME NOT SO AGAIN THE COUNTRY'S LEADERS AND THE EXPERTS WHO ADVISE THEM STILL CAN'T AGREE ON HOW TO STOP THE CARNAGE THIS WEEK'S ELECTIONS HIGHLIGHTED BY GUBERNATORIAL RACES IN NEW JERSEY AND VIRGINIA AND THE MAYOR'S RACE IN NEW YORK CITY SWIRLED AROUND THE CRIME ISSUE DEMOCRATIC CANDIDATES SOUGHT TO CAPITALIZE ON PUBLIC OUTRAGE BY CALLING FOR PASSAGE OF A FIVEDAY WAITING PERIOD FOR THE PURCHASE OF LEGAL HANDGUNS REPUBLICANS SURPRISED AT FINDING THEMSELVES ON THE DEFENSIVE ON AN ISSUE THEY THOUGHT THEY OWNED FIRED BACK WITH THEIR OWN ANTICRIME PROPOSALS SUCH AS VIRGINIA GOVELECT GEORGE ALLEN'S CALL FOR THE ABOLITION OF PAROLE FOR VIOLENT OFFENDERS PERHAPS THE BIGGEST DEMONSTRATION OF THE POWER OF THE CRIME ISSUE WAS A WASHINGTON STATE BALLOT INITIATIVE CALLING FOR ANYONE WITH THREE FELONY CONVICTIONS TO BE SENTENCED TO LIFE IN PRISON IT CARRIED WITH MORE THAN THREEQUARTERS OF THE VOTE AND DOUGLAS BAILEY PUBLISHER OF HOTLINE A COMPUTERIZED DAILY POLITICAL NEWSLETTER PREDICTS THAT YOU'RE GOING TO SEE THIS PASSED BY MAYBE 48 STATES IN THE NEXT 18 MONTHS THE WHITE HOUSE HEARS THE MESSAGE IT PLANS TO MOVE CRIME UP ON ITS AGENDA AFTER LISTENING TO REPORTS THAT CONGRESS IS IN A FEEDING FRENZY TO SHOVE MORE MONEY AT THE PROBLEM BUT THE BASIC CLINTON CRIME BILL MOSTLY PICKS AT THE EDGES OF THE PROBLEM IT WOULD IMPOSE A FIVEDAY WAITING PERIOD FOR THE LEGAL PURCHASE OF HANDGUNS THE SOCALLED BRADY BILL SPEND MORE MONEY TO PUT ADDITIONAL COPS ON THE STREET IN CITIES WITH POPULATIONS OF 50000 OR MORE REQUIRE DRUG TREATMENT FOR FEDERAL PRISONERS AND PAY FOR MORE METAL DETECTORS TO TRACK DOWN GUNS AND KNIVES IN THE NATION'S SCHOOLS FEW PEOPLE BELIEVE THAT MOST OF THESE MEASURES WILL DO MUCH ABOUT THE ESTIMATED 23000 HOMICIDES OR THE MORE THAN SIX MILLION OTHER VIOLENT EPISODES RAPES ASSAULTS ROBBERIES THAT OCCUR ANNUALLY IN THE US THESE ARE EXTRAORDINARY FIGURES NO OTHER INDUSTRIALIZED NATION COMES CLOSE CANADA IS A DISTANT SECOND WITH ONEFOURTH THE NUMBER OF HOMICIDES AND ONEHALF THE NUMBER OF ROBBERIES PER 100000 POPULATION AS THE US SPAIN IS THIRD YET FOR ALL THE OUTCRY THE MURDER RATE IN THIS COUNTRY WHILE OSCILLATING FROM YEAR TO YEAR HAS REMAINED RELATIVELY UNCHANGED FOR THE PAST 20 YEARS IN 1973 FOR EXAMPLE THERE WERE 94 MURDERS AND NONNEGLIGENT MANSLAUGHTERS FOR EVERY 100000 AMERICANS ACCORDING TO FBI FIGURES THE RATE PEAKED IN 1980 AT 102 IN 1992 IT WAS BACK DOWN TO 93 ACCORDING TO THE JUSTICE DEPARTMENT'S BUREAU OF JUSTICE STATISTICS ALL CRIME FROM HOMICIDES TO CAR THEFTS GENERALLY ROSE FROM 1973 UNTIL 1980 AND THEN BEGAN TO DECLINE IT'S DOWN 6 OVER THE LAST 10 YEARS WHY THEN ARE AMERICANS SO AROUSED PERHAPS SAYS JEFFREY ROTH A LAW AND PUBLICPOLICY EXPERT AT THE RESEARCH FIRM ABT ASSOCIATES IT'S BECAUSE THE VICTIMS SEEM TO GET YOUNGER EVERY YEAR AND SO DO THE KILLERS ANOTHER POSSIBLE ANSWER VIOLENT CRIME IS MORE VIOLENT THAN EVER PEOPLE PERCEIVE THAT CRIME THESE DAYS IS A LOT MORE VICIOUS THAN IT USED TO BE SAYS TED ROBERT GURR A GOVERNMENT PROFESSOR AT THE UNIVERSITY OF MARYLAND AND A STUDENT OF THE HISTORY OF CRIME IN THE US THE MASS MEDIA THE EXPERTS SAY PLAY A ROLE THE MASS MEDIA DAILY TRUMPET THE MOST RECENT VIOLENT EVENTS IN THE WORLD AND VIOLENCE IS AN ESSENTIAL INGREDIENT FOR MANY VIEWERS OF VIDEO SCREEN DRAMA NOTES A REPORT BY THE NATIONAL RESEARCH COUNCIL THE OPERATING ARM OF THE NATIONAL ACADEMY OF SCIENCES NEWS OF A RELATIVELY FEW VIOLENT CRIMES ATTRACTS A DISPROPORTIONATE AMOUNT OF ATTENTION COMPARED WITH THE MORE NUMEROUS VIOLENT EVENTS KNOWN ONLY TO THE FAMILY FRIENDS AND ACQUAINTANCES OF PARTICULAR VICTIMS AND PERPETRATORS THE TV PICTURES SAYS MR GURR SCARE HELL OUT OF PEOPLE BUT THERE'S MORE TO IT THAN THAT AMERICANS SENSE SOMETHING HAS CHANGED IT'S A LOSS OF VALUES MR GURR THINKS PEOPLE SEEM TO KILL PEOPLE FOR NO VERY APPARENT REASON VIOLENT CRIME THEN BECOMES RANDOM AND UNEXPLAINABLE IN ADDITION MANY AMERICANS MAY FEEL THAT WHERE THEY LIVE IS MORE DANGEROUS THAN IT USED TO BE SIMPLY BECAUSE IT LOOKS MORE DANGEROUS PEOPLE SEE THEIR STREETS DETERIORATING HOMELESS PEOPLE TRASH FLYING AROUND AND THEY THINK CRIME SAYS JOHN FYFE A FORMER NEW YORK CITY POLICE LIEUTENANT AND NOW A PROFESSOR OF CRIMINAL JUSTICE AT TEMPLE UNIVERSITY I WAS A POLICE SERGEANT WORKING TIMES SQUARE 20 YEARS AGO AND PEOPLE WERE SCARED STIFF BUT THERE WAS VIRTUALLY NO VIOLENT CRIME THERE AT ALL NOW A LOT OF PLACES LOOK LIKE TIMES SQUARE THE SURGE OF THE BABY BOOMERS THE GENERATION BORN BETWEEN 1946 AND 1964 PARTLY EXPLAINS THE HIGH RATE OF BOTH VIOLENT AND PROPERTY CRIMES THROUGH ABOUT 1989 THE MURDER RATE FOR EXAMPLE PEAKED IN 1980 WHEN BABY BOOMERS BORN IN THE LATE '50S AND EARLY '60S WERE IN THEIR MOST VIOLENCEPRONE YEARS THEN IT BEGAN DECLINING ONLY TO JUMP SIGNIFICANTLY BETWEEN 1985 AND 1991 IT BEGAN DROPPING AGAIN MYSTERIOUSLY LAST YEAR BUT AS BABY BOOMERS PASSED OUT OF THEIR MOST VIOLENCEPRONE YEARS THEY HAVE BEEN REPLACED IN THE CRIME STATISTICS BY THE UPSURGE IN CRIME AMONG YOUNG BLACKS IN THE INNER CITIES BLACKS ARE DISPROPORTIONATELY REPRESENTED IN ALL ARRESTS AND MORE SO IN THOSE FOR VIOLENT CRIMES THAN FOR PROPERTY CRIMES NOTES THE NATIONAL ACADEMY OF SCIENCES REPORT THE ARREST RATE FOR VIOLENT CRIMES IS ABOUT SIX TIMES GREATER FOR BLACKS THAN WHITES THE EXPERTS DIFFER ON WHAT SHOULD BE DONE ABOUT VIOLENT CRIMINALS SOME ARGUE FOR WHAT THEY CALL INTERVENTION DEALING WITH INNERCITY YOUTHS WITH VIOLENT CHARACTERISTICS AGGRESSIVE BEHAVIOR LACK OF FEAR WHEN THEY ARE STILL CHILDREN THE HEAD START PROGRAM THESE PEOPLE SAY DOES SOME GOOD IN DEALING WITH THESE AGGRESSIVE ATRISK CHILDREN OTHERS ARGUE THAT THE BEST ANSWER IS INCARCERATION THE THEORY IF THEY'RE IN JAIL THEY'RE INCAPACITATED AND IT SEEMS TO HAVE WORKED UP TO A POINT BETWEEN 1975 AND 1989 THE NUMBER OF JAIL CELLS NEARLY TRIPLED THE COUNTRY'S LARGEST LOWINCOME HOUSING PROJECT CRITICS SAY AND MORE JAILS ARE BEING ADDED EVERY MONTH WITHOUT THE EXTRA CELLS THE RATE OF VIOLENT CRIME PROBABLY WOULD HAVE GROWN BY 15 PERCENTAGE POINTS SOME ANALYSTS BELIEVE INSTEAD WITH THE NEW CELLS THE RATE HAS REMAINED STABLE BUT RESEARCH IS OFTEN MISLEADING DATA ARE CONFUSING GREAT GAPS REMAIN IN WHAT STUDENTS OF CRIME KNOW ABOUT CRIMINAL BEHAVIOR WHY FOR A CRUCIAL EXAMPLE DO VIOLENT CRIME CAREERS LAST ON AVERAGE ONLY SEVEN TO NINE YEARS WHAT CAUSES THESE YOUNG MEN TO TURN AWAY FROM VIOLENCE AT THE END OF THAT TIME IT'S A MYSTERY SAYS MR ROTH THE CRIME RESEARCHER WHO WAS COEDITOR OF THE NATIONAL ACADEMY OF SCIENCES REPORT NOBODY KNOWS 9311050111 931105 MONEYFUND ASSETS DECLINED 135 BILLION IN MOST RECENT WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS FELL 135 BILLION TO 58079 BILLION FROM A REVISED 58214 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID ASSETS OF 645 RETAIL MONEYMARKET MUTUAL FUNDS FELL BY 2595 MILLION TO 38930 BILLION THE TRADE GROUP SAID AMONG RETAIL FUNDS ASSETS OF 406 TAXABLE MONEYMARKET FUNDS FELL BY 6884 MILLION TO 30466 BILLION ASSETS OF 239 RETAIL TAXEXEMPT FUNDS ROSE BY 4289 MILLION TO 8464 BILLION ASSETS OF THE 274 INSTITUTIONAL MONEYMARKET FUNDS FELL BY 109 BILLION TO 19149 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 221 TAXABLE MONEYMARKET FUNDS FELL BY 153 BILLION TO 16961 BILLION ASSETS OF 53 TAXEXEMPT FUNDS ROSE 4401 MILLION TO 2188 BILLION 9311050110 931105 LEISURE & ARTS BOOKSHELF RISK REGULATION RUN AMOK BY SAM KAZMAN IF A REGULATORY SYSTEM WERE TO GO INSANE WHAT WOULD THE SYMPTOMS BE IN THE WAKE OF THE ASBESTOS GRIDLOCK OF NEW YORK CITY'S SCHOOLS WE MIGHT WELL WONDER WHETHER WE AREN'T THERE ALREADY IN BREAKING THE VICIOUS CIRCLE HARVARD UNIVERSITY PRESS 127 PAGES 2295 FEDERAL JUDGE AND RECENT SUPREME COURT CONTENDER STEPHEN BREYER SHOWS HOW COSTLY SPECULATIVE THREATS TO HYPERTHEORETICAL VICTIMS HAVE VIRTUALLY CRIPPLED ANY SENSIBLE CONCEPTS OF RISK REGULATION DRAWING ON DECISIONS FROM HIS OWN AND OTHER COURTS AND ON SCORES OF ANALYTICAL ARTICLES JUDGE BREYER PAINTS A DISCOURAGING PICTURE OF BUREAUCRATIC TUNNEL VISION REGULATORS WHO PURSUE THEIR MISSIONS ABOVE AND BEYOND THE CALL OF REASON AMONG HIS MOST COMPELLING EXAMPLES ARE THOSE INVOLVING KILLER TOOTHPICKS AND DIRTEATING CHILDREN IN 1989 THE ENVIRONMENTAL PROTECTION AGENCY PROHIBITED A WIDE RANGE OF ASBESTOS PRODUCTS ITS BAN ON ASBESTOS PIPE AND ROOF PRODUCTS ALONE WOULD COST 200 MILLION TO 300 MILLION WHILE SAVING FEWER THAN SEVEN LIVES OVER A 13YEAR PERIOD FINALLY A FEDERAL COURT STRUCK DOWN THE BAN NOTING THAT TOOTHPICKS WHICH CAUSE ABOUT ONE DEATH A YEAR DUE TO ACCIDENTAL INGESTION ARE MORE THAN TWICE AS RISKY AS THE ASBESTOS PRODUCTS A HUMANLY IRRELEVANT LEVEL OF SAFETY ALSO CAME INTO PLAY AT A NEW ENGLAND TOXICWASTE DUMP IT WAS ALREADY CLEAN ENOUGH FOR CHILDREN TO EAT ITS DIRT FOR TWO MONTHS A YEAR WITHOUT HARM BUT THE EPA WANTED TO FORCE A FURTHER 9 MILLION CLEANUP TO EXTEND THE DIRTEATING PERIOD TO EIGHT MONTHS EVEN THOUGH THE DUMP WAS IN A SWAMP AND THERE WERE NO KIDS IN THE AREA TO BEGIN WITH PERHAPS MOST RELEVANT TO NEW YORK'S ASBESTOS DILEMMA IS A COMPARISON WITH THE MILLIONAIRE'S MARGINALLY SAFER CAR THE COST OF REMOVING ASBESTOS FROM ALL PUBLIC BUILDINGS NATIONWIDE IS ESTIMATED AT BETWEEN 53 BILLION TO 150 BILLION ACCORDING TO A SCIENCE MAGAZINE ARTICLE CITED BY JUDGE BREYER BUT IT WOULD SAVE PERHAPS 10 LIVES A YEAR THIS WORKS OUT TO 250 MILLION PER STATISTICAL LIFE SAVED OVER 40 YEARS DOES THIS MAKE SENSE BY WAY OF ANSWER JUDGE BREYER COMPARES THIS TO PAYING AN EXTRA 48000 FOR A CAR THAT IS 5 SAFER AN EXPENDITURE NO ONE IN HIS RIGHT MIND WOULD MAKE INCONSISTENCIES AMONG REGULATORY PROGRAMS ADD TO THESE FIASCOS JUDGE BREYER MENTIONS A 1992 COURT FINDING THAT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IN RUNNING ITS FUELECONOMY PROGRAM FOR NEW CARS CONCEALED THE LETHAL EFFECT OF RESTRICTING THE AVAILABILITY OF LARGER MORE CRASHWORTHY MODELS UNDERLYING ALL THIS IS A PUBLIC THAT OVERREACTS AND A CONGRESS INCAPABLE OF ADDRESSING RISK COMPREHENSIVELY JUDGE BREYER REFRESHINGLY REJECTS THE STANDARD SOLUTION IN WHICH GREATER KNOWLEDGE AND PUBLIC AWARENESS LEAD TO BETTER REGULATION IN HIS VIEW THE MORE WE KNOW THE WORSE THE RISK MANAGEMENT MAY GET SUSPICIOUS SUBSTANCES WILL BECOME DETECTABLE AT EVER LOWER LEVELS AND IMPROVEMENTS IN TELECOMMUNICATIONS WILL GIVE US AN EVER LARGER POOL OF UNUSUAL ACCIDENT STORIES TO WRITE ABOUT HE NOTES INSTEAD JUDGE BREYER PROPOSES CREATING AN ELITE REVIEWING BODY OF CIVIL SERVANTS WITHIN THE EXECUTIVE BRANCH TO COORDINATE RISK REGULATION JUDGE BREYER'S ANALYSIS IS OUTSTANDING IN ITS RANGE SUCCINCTNESS AND EXHAUSTIVE DOCUMENTATION BUT HIS SOLUTION LEAVES ME UNCONVINCED PROPOSING A NEW FEDERAL AGENCY CAN ONLY SET OFF UNIVERSAL ALARM BELLS AND JUDGE BREYER DOES NOT SUCCESSFULLY SHOW HOW THIS WOULD AVOID GIVING US A FEW NEW BUREAUCRATIC BOTTLES OUT OF WHICH POURS THE SAME OLD BAD WINE WHO WILL GUARANTEE THAT THE CONTENTS OF THESE NEW BOTTLES WON'T BE AN EVEN WORSE BREW FOR EXAMPLE HE CITES THE FEDERAL TRADE COMMISSION'S REVITALIZATION IN THE 1970S AS A MODEL OF AGENCY REBUILDING YET IT WAS THIS IMPROVED FTC THAT SUBSEQUENTLY ATTEMPTED TO RESTRICT CHILDREN'S TELEVISION ADVERTISING ATTEMPTS AT COMPREHENSIVE RISK REDUCTION CAN EASILY LEAD TO ATTEMPTS TO LITERALLY SAVE THE WORLD JUDGE BREYER HIMSELF OCCASIONALLY LUMPS TOGETHER SUCH SUBJECTS AS DAY CARE AND HOUSING WITH CANCER DIAGNOSIS AND VACCINATIONS HE CHARACTERIZES SUCH ECOLOGICAL ISSUES AS OZONE FOREST DESTRUCTION OR CLIMATE CHANGE AS CLOSELY RELATED TO HEALTH BUT GIVES NO HINT OF THE SCIENTIFIC DISPUTES THAT SURROUND THESE MATTERS IF THIS CAREFULLY REASONED BOOK CAN REMAIN SO OPENENDED WHERE WOULD A NEW RISK CZAR DRAW THE LINE WE CAN HARDLY EXPECT HIM TO CONSIDER DEREGULATION AS A SOLUTION AN ALTERNATIVE TO WHICH JUDGE BREYER HIMSELF GIVES RELATIVELY SHORT SHRIFT INSTEAD JUDGE BREYER CLAIMS THAT THE PUBLIC DEMANDS MORE SAFETY AND THAT MORE SAFETY IS ACHIEVABLE BUT THESE PUBLIC DEMANDS ARE CLOSELY TIED TO THE PERCEPTION THAT REGULATION WILL BE COSTFREE ARE THERE ANY COMMUNITIES DEMANDING CLEANUPS FOR WHICH THEY THEMSELVES WILL PAY MR KAZMAN IS GENERAL COUNSEL FOR THE COMPETITIVE ENTERPRISE INSTITUTE A WASHINGTONBASED FREE MARKET ADVOCACY ORGANIZATION 9311050109 931105 AIG SOSIN SETTLE DISPUTE AS INSURER AGREES TO BUY STAKE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN INTERNATIONAL GROUP SETTLED ITS DISPUTE WITH ITS FORMER DERIVATIVES WIZARD HOWARD SOSIN AGREEING TO BUY OUT MR SOSIN'S STAKE IN THE UNIT HE HEADED FOR AN UNDISCLOSED AMOUNT THE MOVE APPARENTLY PUTS AN END TO THE STORMY SIXYEAR RELATIONSHIP THAT MADE VAST AMOUNTS OF MONEY FOR BOTH AIG ONE OF THE COUNTRY'S LARGEST INSURERS AND MR SOSIN IT ALSO FREES MR SOSIN 42 YEARS OLD TO PURSUE OTHER OPPORTUNITIES UNDER THE TERMS OF THE AGREEMENT MR SOSIN IS FREE TO COMPETE WITH AIG MR SOSIN AND A GROUP OF HIS FORMER AIG COLLEAGUES ARE CURRENTLY WORKING IN AN OFFICE IN WESTPORT CONN TRYING TO FIND ANOTHER FINANCIAL BACKER THE SETTLEMENT COMES ON THE EVE OF THE BEGINNING OF TESTIMONY IN AN ARBITRATION CASE BETWEEN AIG AND MR SOSIN CONCERNING HOW TO VALUE MR SOSIN'S 20 SHARE OF AIG'S DERIVATIVES OPERATION KNOWN AS AIG FINANCIAL PRODUCTS LAST YEAR THE UNIT REPORTED 171 MILLION IN OPERATING PROFIT MAKING IT THE FASTESTGROWING OPERATING UNIT WITHIN AIG HOWEVER SINCE MR SOSIN LEFT AIG IN AUGUST THE FORTUNES OF AIG FINANCIAL PRODUCTS HAVE SAGGED OPERATING PROFIT HAS FALLEN AND THE COMPANY HAS TAKEN TWO CONSECUTIVE QUARTERLY CHARGES RELATED TO WRITEDOWNS FOR SOURED INVESTMENTS IN A BRIEF PRESS RELEASE AIG SAID IT HAS TERMINATED THE ARBITRATION AND SETTLED ALL OF THE OUTSTANDING ISSUES AIG AND MR SOSIN HAVE AGREED NOT TO DISCUSS DETAILS OF THE SETTLEMENT IN AN INTERVIEW MR SOSIN'S ATTORNEY RON ROLFE WOULD ONLY SAY THE SETTLEMENT WAS GOOD FOR BOTH SIDES ANALYSTS HAD PREVIOUSLY SAID MR SOSIN'S 20 STAKE IN AIG FINANCIAL PRODUCTS COULD BE WORTH ABOUT 400 MILLION BASED ON ITS PROFITS PEOPLE FAMILIAR WITH THE AGREEMENT SAID YESTERDAY THE AMOUNT OF THE SETTLEMENT WASN'T NEARLY THAT HIGH AND THAT MR SOSIN HAS NO CONTINUING CLATHE UNIT'S PROFITS AIG SAID THE SETTLEMENT WILL HAVE NO MATERIAL IMPACT ON EARNINGS MR SOSIN JOINED AIG IN 1987 AFTER LEAVING DREXEL BURNHAM LAMBERT BACKED BY AIG'S TRIPLEA CREDIT RATING MR SOSIN SCORED TREMENDOUS PROFITS THROUGH DERIVATIVES TRANSACTIONS THAT STUNNED WALL STREET FOR THEIR CREATIVITY AND AGGRESSIVENESS DERIVATIVES ARE FINANCIAL ARRANGEMENTS WHOSE RETURNS ARE TIED TO OR DERIVED FROM THE PERFORMANCE OF SUCH THINGS AS TREASURY BONDS CURRENCY VALUES OR STOCK PRICES AIG FINANCIAL PRODUCTS SPECIALIZES IN SWAPS WHERE AIG AND OTHER PARTIES AGREE TO TRADE THEIR OBLIGATIONS TO MAKE INTEREST PAYMENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY AIG SHARES ROSE 50 CENTS TO 84125 9311050108 931105 CANADA CANCELS ORDER FOR HELICOPTERS MADE BY UNISYS UNIT GE OTTAWA CANADIAN PRIME MINISTER JEAN CHRETIEN ANNOUNCED HIS GOVERNMENT HAS CANCELED A 48 BILLION CANADIAN DOLLAR US37 BILLION CONTRACT BY THE ARMED FORCES FOR 43 EH101 HELICOPTERS THE CANCELLATION IMPLEMENTED AN ELECTION PLEDGE BY MR CHRETIEN'S LIBERAL PARTY WHICH WON CANADA'S OCT 25 ELECTION THE CONTRACT WAS NEGOTIATED BY THE PREVIOUS PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT THE MAIN CONTRACTORS FOR THE ORDER WERE PARAMAX SYSTEMS CANADA INC A MONTREAL SUBSIDIARY OF UNISYS INC BLUE BELL PA AND EH INDUSTRIES LTD JOINTLY OWNED BY WESTLAND GROUP PLC OF BRITAIN AND AGUSTA SPA OF ITALY PARAMAX WAS TO SUPPLY THE ELECTRONIC SYSTEMS FOR THE HELICOPTERS WHICH ARE POWERED BY ENGINES PRODUCED BY GENERAL ELECTRIC CO FAIRFIELD CONN CANADA WAS THE SECONDLARGEST CUSTOMER FOR THE EH101 HELICOPTER AFTER BRITAIN'S ROYAL NAVY WHICH HAS ORDERED 44 MR CHRETIEN SAID THE HELICOPTERS WERE TOO EXPENSIVE FOR CANADA THEY WERE TO BE USED FOR ANTISUBMARINE PATROLS AND FOR SEARCHANDRESCUE MISSIONS 9311050107 931105 UAL UNIONS TAKE INDEFINITE RECESS IN NEGOTIATIONS ON LABOR CONCESSIONS BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP'S LABOR CONCESSION TALKS STALLED AS THE TWO SIDES CALLED A RECESS YESTERDAY AFTER SEVERAL DAYS OF INTENSE NEGOTIATIONS A SPOKESMAN FOR THE UNITED AIRLINES UNION COALITION WHICH IS TRYING TO ACQUIRE A MAJORITY STAKE IN PARENT COMPANY UAL IN EXCHANGE FOR SOME 4 BILLION IN WAGE AND WORKRULE CONCESSIONS SAID THE PARTIES ARE EXPECTED TO TALK AGAIN BUT COULDN'T SAY WHEN THERE'S NOTHING UNUSUAL HERE JUST A NEED TO SIT BACK AND MEET WITH A GROUP OF ADVISERS THE SPOKESMAN SAID UAL SAID THAT IT REMAINS COMMITTED TO RESPONDING TO ALL UNION COALITION INITIATIVES ADDING THAT NO DEFINITIVE PROPOSAL HAS YET BEEN PRESENTED FOR WEEKS THE AIRLINE INDUSTRY HAS BEEN CLOSELY MONITORING THE COMPLEX AND SECRETIVE NEGOTIATIONS THE TALKS IN WHICH THE PARTIES HAD ALREADY AGREED TO SET UP A SEPARATE LOWERCOST AIRLINE FOR SHORTERFLIGHT MARKETS TO COMPETE WITH LOWFARE RIVALS LIKE SOUTHWEST AIRLINES HAD INTENSIFIED THIS WEEK IF THE PARTIES ARE ABLE TO REACH AN AGREEMENT OTHER MAJOR AIRLINES WILL BE FORCED TO FOLLOW FACING A POSSIBLE STRIKE BY FLIGHT ATTENDANTS ROBERT CRANDALL CHAIRMAN OF AMR CORP ALREADY HAS BEEN HOLDING OUT UNITED'S NEGOTIATIONS AS AN EXAMPLE OF THE KIND OF COST REDUCTION AMR'S AMERICAN AIRLINES UNIT NEEDS BUT THE DYNAMICS OF THE STALLED UNITED TALKS DON'T BODE WELL FOR THE INDUSTRY'S DRIVE FOR VOLUNTARY LABORCOST CUTS MUCKING UP THE UNITED NEGOTIATIONS HAS BEEN A GROWING BELIEF ON THE PART OF SOME UNION MEMBERS THAT AMID A BUDDING AIRLINE INDUSTRY RECOVERY IT WOULD BE HARDER THAN THEY HAD THOUGHT TO SELL PAINFUL SACRIFICE TO THE RANK AND FILE AS ONE UAL UNION NEGOTIATOR PUT IT THIS IS A VERY UNHAPPY DEAL FOR EVERYBODY INDEED THE AIRLINES THAT RECENTLY STRUCK OTHER EQUITYFORCONCESSION DEALS WERE IN FAR WORSE SHAPE THAN UNITED ONE WAS TRANS WORLD AIRLINES WHICH STRUCK A DEAL AS PART OF ITS PLAN TO EMERGE FROM BANKRUPTCYLAW PROTECTION THE OTHER WAS WINGS HOLDINGS INC'S NORTHWEST AIRLINES WHICH WAS TRYING TO AVOID A CHAPTER 11 FILING THE NATURE OF COLLECTIVE BARGAINING IS YOU WAIT UNTIL THE MIDNIGHT DEADLINE UNTIL SOMEONE HAS A GUN TO YOUR HEAD SAID JOHN BUDD A PROFESSOR OF INDUSTRIAL RELATIONS AT THE UNIVERSITY OF MINNESOTA UNITED ISN'T FACING THE SAME SORT OF SHORTTERM PRESSURE SO EACH SIDE THINKS THEY CAN GET A LITTLE BETTER DEAL BY HOLDING OUT FURTHER COMPLICATING THE NEGOTIATIONS HAS BEEN UAL'S HANDLING OF THE DEADLINE FOR THE TALKS IN MIDSEPTEMBER UAL SIGNED A DEAL TO SELL SOME OF ITS FLIGHT KITCHENS WHICH EMPLOY SOME 5000 MEMBERS OF THE MACHINISTS' UNION UAL SET A TWOMONTH PERIOD TO CLOSE ON THE SALE SAYING THAT IT WOULDN'T JETTISON THE CATERING UNITS OR THEIR EMPLOYEES IF THE UNIONS AGREED TO WAGE CONCESSIONS BY NOV 13 BUT LABOR EXPERTS SAY A CONCESSION AGREEMENT REALLY WOULD HAVE HAD TO HAVE BEEN IN HAND BY TODAY TO GIVE THE MACHINISTS AMPLE TIME FOR MEMBERS TO VOTE ON IT WITH THE KITCHEN DEADLINE LOOMING THERE WAS A BIG PUSH LAST WEEKEND TO FINALIZE AN AGREEMENT UAL AND UNION TEAMS MET IN NEW YORK IN BARGAINING SESSIONS THAT SOMETIMES STRETCHED UNTIL 4 AM BUT THE TEAMS COULDN'T AGREE ON MANY SMALL DETAILS DESPITE GENERAL AGREEMENT ON LARGER ISSUES INCLUDING THE CREATION OF THE NEW LOWERCOST AIRLINE SAY TWO PEOPLE INVOLVED IN THE NEGOTIATIONS THE LEADERS OF THE PILOTS UNION FLOWN TO NEW YORK LATE LAST WEEK TO APPROVE THE DEAL LEFT TUESDAY CRESTFALLEN SOME PILOTS REFER TO THE FAILED WEEKEND TALKS AS THE MISSED APPROACH SINCE MONDAY UAL MANAGERS HAVE BEEN TELLING UNION NEGOTIATORS THAT THEY WERE GROWING IMPATIENT AND VERY DISAPPOINTED THAT AN AGREEMENT HADN'T BEEN REACHED BUT THEN UAL MAY HAVE BUMBLED IN THE PAST COUPLE OF DAYS SOME UNION NEGOTIATORS HAVE READ UAL'S CONTINUED WILLINGNESS TO NEGOTIATE AS A SIGN THAT THE COMPANY ISN'T FIRM ON THE NOV 13 DEADLINE DESPITE PUBLIC STATEMENTS TO THE CONTRARY THE UNIONS SENSED SOME BREATHING ROOM THE DATES HAVE PASSED SAID ONE UNION NEGOTIATOR AFTER A BARGAINING SESSION WEDNESDAY UAL ISN'T GOING TO WALK AWAY FROM BILLIONS OF DOLLARS OF VALUE ON THE TABLE UAL'S MANAGEMENT IS CONVINCED IT NEEDS TO RADICALLY RESTRUCTURE TO ENSURE LONGTERM PROFITABILITY ITS LABOR COSTS MUST FALL SHARPLY THE CARRIER HAS SAID AND IT NEEDS TO BE ABLE TO PAY LOWER WAGES TO EMPLOYEES OF THE PROPOSED SHORTHAUL CARRIER TENTATIVELY CALLED FRIENDSHIP EXPRESS UNITED HAS HOPED TO GET VOLUNTARY WAGE REDUCTIONS BUT FAILING THAT THE COMPANY HAS SAID IT WILL BEGIN SELLING OFF PIECES STARTING WITH THE FLIGHT KITCHENS AND POSSIBLY MOVING ON TO MAINTENANCE OPERATIONS BUT UAL KNOWS THAT SUCH MOVES WILL BE MET WITH SHARP RESISTANCE FROM THE UNIONS WHICH IN PAST DISPUTES HAVE SLOWED FLIGHTS AND GROUNDED PLANES IN SEPTEMBER THE FLIGHT ATTENDANTS UNION PULLED OUT OF THE BUYOUT TALKS OVER CHAIRMAN STEVEN M WOLF'S PLAN TO BASE SOME FLIGHT ATTENDANTS IN TAIWAN THE FLIGHT ATTENDANTS UNION HAS CALLED MR WOLF THE DR KERVORKIAN OF THE AIRLINE BUSINESS CONTENDING THAT LIKE THE DOCTOR WHO ASSISTS IN SUICIDES HE IS ASSISTING IN UNITED'S DEMISE 9311050106 931105 LEISURE & ARTS A LONG WALK FOR MELONS BY SUSAN G HAUSER PORTLAND ORE I AGREED TO WALK THE 262 MILES OF THE PORTLAND MARATHON ONLY AFTER I WAS TOLD THAT THE EXPERIENCE WOULD MIRACULOUSLY TRANSFORM MY BACKSIDE YOUR REAR END WILL LOOK LIKE TWO HONEYDEW MELONS SIDE BY SIDE PROMISED ELLIE HODDER ELLIE IS THE OWNER OF A LOCAL GYM CALLED CORNER ON HEALTH SHE BILLS IT AS PORTLAND'S MOST UNPRETENTIOUS EXERCISE PLACE EVERY YEAR SHE TRAINS A GROUP OF MOSTLY BIGBUTTED WOMEN SO THEY CAN WALK THE MARATHON I JOINED HER GROUP OF ABOUT 20 WOMEN IN APRIL THEY'D BEEN IN TRAINING SINCE JANUARY ALREADY THEY'D TROMPED THROUGH A COUPLE OF SNOWSTORMS IN ANTICIPATION OF THE SEPTEMBER EVENT I HAD A LOT OF CATCHING UP TO DO IT WOULD BE A LONG TIME BEFORE I COULD PUT A GOLD STICKER AFTER MY NAME ON THE MILEAGE CHART EACH STICKER REPRESENTED 100 MILES AND A FEW OF THE WOMEN ALREADY HAD THREE OR FOUR OF THEM I HADN'T EVEN PUT IN A FIVEMILER YET ELLIE WAS MY WALKING PARTNER THE FIRST TIME I JOINED THE GROUP ON A LONG WALK WE DID EIGHT MILES MY GREATEST MILEAGE TO DATE ON THE WAY ELLIE POINTED OUT ALL THE THINGS I WAS MISSING 1 A FANNY PACK 2 A SUPPLY OF BAGELS FRUIT AND JELLY BEANS TO CARRY IN THE FANNY PACK 3 A WATER BOTTLE SHE SAID I ALSO NEEDED NEW SHOES RUNNING SHOES RATHER THAN WALKING SHOES FOR GREATER FLEXIBILITY THE SHOES HAD TO BE LARGER THAN USUAL TO ACCOMMODATE THE INEVITABLE SWELLING FROM POUNDING THE PAVEMENT FOR 262 MILES NEW SOCKS WOULD HELP TOO ESPECIALLY THE ANTIBLISTER VARIETY ELLIE ALSO RECOMMENDED THAT I GET SOME OF THOSE SHINY SKINTIGHT EXERCISE SHORTS TO WEAR WHILE WALKING THE BETTER TO SHOW OFF THE FIRM LITTLE MELONS THAT WOULD BE MY REWARD SHE SAID THIS TIME WHEN SHE WAXED ECSTATIC ABOUT MY FUTURE BOTTOM ELLIE ALSO THREW IN THE SCIENTIFIC FACT THAT DURING THE ARDUOUS MARATHON TRAINING PROCESS MY BUTTOCKS WOULD ACTUALLY ELEVATE BY TWO INCHES I DON'T KNOW HOW SHE CALCULATED THAT BUT IT SOUNDED TERRIFIC TO ME IN FACT I WAS SO THRILLED ABOUT MY HOISTED TEENSY TUSH THAT I BARELY HEARD ELLIE WHEN SHE MUTTERED YOU REALIZE OF COURSE THAT TO COMPLETE THE MARATHON YOU'LL HAVE TO WALK FOR A WHOLE DAY THAT PART DIDN'T SINK IN UNTIL MUCH LATER WHEN I MET A MARATHON RUNNER FOR COFFEE SHE TOLD ME THAT THE ONLY REASON PEOPLE RUN THE MARATHON IS TO GET THE DARN THING OVER WITH THE PEOPLE WHO WALK MARATHONS ARE THE TRUE IDIOTS SHE KINDLY TOLD ME BECAUSE MOST OF THEM ARE OUT THERE WALKING FOR A WHOLE DAY TRUE ENOUGH I CALCULATED THAT I COULD PROBABLY WALK THE DISTANCE IN SEVEN TO EIGHT HOURS BY THAT TIME THE MARATHON RUNNERS WOULD BE LONG GONE BACK IN THE COMFORT OF THEIR HOMES TENDING TO THEIR CRAMPS VISIONS OF HONEYDEW MELONS SPURRED ME ON ONE DAY I WALKED NONSTOP TO LAKE OSWEGO A PORTLAND SUBURB I HAVE DRIVEN TO LAKE OSWEGO HUNDREDS OF TIMES BUT IT HAD NEVER ONCE OCCURRED TO ME TO WALK THERE THAT COUNTED FOR 16 BIG ONES ON THE MILEAGE CHART ONLY ABOUT 75 TO GO BEFORE I WOULD GET MY FIRST STICKER NEXT I JOINED THE GROUP FOR A 20MILE WALK ALONG MOST OF THE MARATHON COURSE WHICH WOULD FAMILIARIZE US WITH THE ROUTE BASICALLY WE WALKED DOWN ONE SIDE OF THE WILLAMETTE RIVER CROSSED A BRIDGE AND WALKED BACK SCENIC SORT OF PAINFUL MOST DEFINITELY IF I HADN'T BEEN CONSTANTLY AWARE OF THE MIRACULOUS ELEVATING PROCESS GOING ON RIGHT BEHIND ME I WOULDN'T HAVE HAD THE INCENTIVE TO FINISH BUT BY THEN WE HAD ONLY ABOUT A MONTH TO GO BEFORE THE MARATHON TIME FOR ANOTHER 20MILE TRAINING WALK AND A FEW JAUNTS AROUND THE NEIGHBORHOOD WE GOT TOGETHER A FEW WEEKS BEFORE THE EVENT SO ELLIE COULD EXPLAIN THE PRINCIPLES OF CARBO LOADING ELLIE SAID THAT ABOUT 70 OF OUR CALORIES SHOULD COME FROM CARBOHYDRATES SHE GAVE US A LIST OF HIGHENERGY FOODS HOORAY ICE CREAM WAS ON THE LIST THE BIG DAY ARRIVED MY ICECREAM DIET HAD FILLED ME WITH ENERGY I BOUND MY BUNS IN MY TIGHT TIGHT SHORTS AND STRAPPED ON MY FANNY PACK AND WATERBOTTLE HOLDER I APPLIED MOLESKIN TO THE BALLS OF MY FEET PULLED ON MY ANTIBLISTER SOCKS AND SETTLED MY FEET INTO MY ROOMY SHOES I HAD STOCKED MY FANNY PACK WITH ENOUGH PROVISIONS TO LAST A WHOLE DAY OF WALKING STILL AROUND MILE 21 I EXPERIENCED GLYCOGEN DEPLETION A CONDITION THAT RESULTS WHEN YOU'VE RUN THROUGH YOUR ENERGY STORES IT MAKES YOUR BRAIN HAZY SOMEONE AT THE AID STATION CALLED OUT CHEERFULLY ONLY FIVE MORE TO GO FIVE WHAT I ASKED FEELING LIKE THE ADMIRAL STOCKDALE OF MARATHON WALKING I FUMBLED FOR A JELLY BEAN AND STAGGERED FORWARD FINALLY THE FINISH LINE WAS WITHIN SIGHT I HAD BEEN WALKING FOR 7 1/2 HOURS MY FEET WERE KILLING ME BUT THEY HAD BEEN SACRIFICED FOR A WORTHY CAUSE I COULDN'T WAIT TO ADMIRE THOSE ELEVATED MELONS I CROSSED THE LINE WITH AN UNFAMILIAR SPRINGINESS TO MY STEP SMILING JOYFULLY I DIPPED MY HEAD SO A FINISHER'S MEDAL COULD BE SLIPPED AROUND MY NECK THEN I WENT HOME TO TEND TO MY CRAMPS SOME DAYS LATER WHEN I COULD WALK AGAIN I PULLED MYSELF TO A STANDING POSITION I CALLED MY BELOVED CHILDREN TO MY SIDE THEY WHO HAD SUPPORTED THEIR MOTHER IN HER GREATEST ATHLETIC ENDEAVOR WHADDYA THINK I SAID TURNING AROUND DO THEY LOOK LIKE MELONS YEAH AGREED MY KIDS ONE GREAT BIG WATERMELON TIPPED OVER ON ITS SIDE THEN THEY LAUGHED AND LAUGHED AT LEAST I HAVE MY MEDAL SO I GUESS IT WAS WORTH IT MAYBE MS HAUSER IS A WRITER IN PORTLAND 9311050105 931105 PRIMERICA UNIT AWARDS BONUSES TO LIFT MORALE BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMITH BARNEY SHEARSON INC THE SECURITIES UNIT OF PRIMERICA CORP IS AWARDING SEVERAL HUNDRED OF ITS EMPLOYEES HARDSHIPDUTY BONUSES TO BOOST MORALE IN A GLITCHFILLED MARRIAGE OF TWO BIG BROKERAGE FIRMS PRIMERICA'S SMITH BARNEY FORMALLY MERGED WITH SHEARSON JULY 31 FORMING AN 11000BROKER FOURMILLIONCUSTOMER FIRM THAT IS SECOND IN SIZE ONLY TO MERRILL LYNCH & CO BUT BROKERS FROM SMITH BARNEY SHEARSON OFFICES ACROSS THE COUNTRY SAID THE UNION OF THE TWO FIRMS' SALES FORCES AND OPERATIONS HAS BEEN PLAGUED BY COMPUTER PROBLEMS STATEMENT ERRORS MISCOMMUNICATION AND BUREAUCRACY IT'S THE FIRST SIGN OF TROUBLE IN WHAT UNTIL NOW HAS SEEMINGLY BEEN A SMOOTH MERGER MASTERMINDED BY SANFORD WEILL PRIMERICA'S CHAIRMAN WHO MORE THAN A DECADE AGO HEADED SHEARSON THIS WAS ADVERTISED AS A SEAMLESS TRANSITION BUT IT'S BEEN ANYTHING BUT SAID ONE BROKER IN A NEW ENGLAND OFFICE IT'S A HORROR SHOW SAID A SMITH BARNEY SHEARSON BROKER IN NEW YORK ERRORS IN CLIENT STATEMENTS STOCK CERTIFICATES THAT WERE SUPPOSED TO BE SENT OUT AND WEREN'T THREE CONFIRMATIONS FOR ONE PURCHASE AT THREE DIFFERENT PRICES LOST CLIENT TRANSFER FORMS THIS IS COMMON AT THE COMBINED FIRM THE BROKER SAID ONE BROKER ESTIMATED THAT 10 TO 15 OF HIS CLIENTS HAVE COMPLAINED SINCE THE MERGER ABOUT ERRORS ON THEIR STATEMENTS AND THOSE ARE THE ONES THAT NOTICED HE ADDED SMITH BARNEY CLIENTS HAVE BEEN THE HARDEST HIT BY SUCH GLITCHES BECAUSE THE COMBINED FIRM SWITCHED ALMOST ENTIRELY TO SHEARSON'S BACKOFFICE SYSTEM FOR EXAMPLE BROKERS SAID MANY SMITH BARNEY CLIENTS RECEIVED NO NOTICE THAT THEIR ACCOUNT NUMBERS HAD BEEN CHANGED BUT THE COMPLAINTS COME FROM BOTH SIDES OF THE MERGER BROKERS IN THE PHILADELPHIA OFFICE WERE SO INCENSED IN SEPTEMBER BY THE PROBLEMS THAT JOSEPH PLUMERI PRESIDENT OF THE FIRM VISITED THE OFFICE TO CALM THE STAFF IT WAS JUST ONE OF SEVERAL SUCH CALLS AND VISITS THAT MR WEILL MR PLUMERI AND OTHERS HAVE MADE TO MANY OFFICES TO SMOOTH THE TRANSITION SMITH BARNEY SHEARSON OFFICIALS DON'T DENY THE PROBLEMS BUT SAY THEY ARISE PARTLY OUT OF CORPORATE CULTURE CLASHES AND RESISTANCE TO CHANGE WE ARE ACTIVELY AND AGGRESSIVELY SOLVING ANY RESIDUAL PROBLEMS RESULTING FROM OUR MERGER SAID JAMES DIMON PRESIDENT CHIEF FINANCIAL OFFICER AND AS OF A PROMOTION YESTERDAY CHIEF OPERATING OFFICER OF PRIMERICA WE'LL DO ANYTHING WE HAVE TO TO MAINTAIN THE QUALITY OUR CUSTOMERS AND BROKERS DESERVE THE MERGERRELATED BONUSES RANGING FROM 1000 TO 30000 A PERSON ARE BEING PAID TO SEVERAL HUNDRED BACKOFFICE SYSTEMS TECHNICAL AND ADMINISTRATIVE EMPLOYEES MOST OF THEM WORK AT THE FIRM'S GREENWICH STREET BUILDINGS IN NEW YORK AND HAVE BEEN WORKING SIX OR SEVEN DAYS A WEEK ON NEW COMPUTER PROGRAMS OR ON FIXING ERRORS THE TOTAL BONUS POOL IS UNDISCLOSED BUT THE MONEY IS ACCOMPANIED BY A NOTE OF THANKS FROM ROBERT F GREENHILL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SMITH BARNEY SHEARSON THESE EMPLOYEES HAVE BEEN WORKING ABOVE AND BEYOND THE CALL OF DUTY AND IT'S NICE TO BE RECOGNIZED SAID MR DIMON FOR SOME OF THE EMPLOYEES THE EXTRA MONEY IS IN ADDITION TO NORMAL ANNUAL BONUSES THAT WILL BE PAID IN JANUARY MEANTIME PRIMERICA ANNOUNCED IT HAD CREATED AN OFFICE OF THE CHAIRMAN IT CONSISTS OF ROBERT LIPP AND FRANK G ZARB BOTH VICE CHAIRMEN AND GROUP CHIEF EXECUTIVES MR DIMON AND MR GREENHILL MR WEILL CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF PRIMERICA 9311050104 931105 WHO'S NEWS AVON APPOINTS ROBINSON PRESIDENT HEAD OF FIRM'S US BUSINESS RESIGNS BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AVON PRODUCTS INC NAMED EDWARD J ROBINSON PRESIDENT AND CHIEF OPERATING OFFICER AND ANNOUNCED THE RESIGNATION OF WALKER LEWIS THE HEAD OF ITS US BUSINESS AFTER ONLY 19 MONTHS IN THE POSITION MR ROBINSON WHO HAS PRIMARILY HAD A FINANCIAL BACKGROUND AND WAS PREVIOUSLY VICE CHAIRMAN AND CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER WILL HAVE RESPONSIBILITY FOR ALL OF AVON'S OPERATIONS OUTSIDE THE US CANADA AND PUERTO RICO THE POSITION PUTS HIM IN LINE AS THE POSSIBLE SUCCESSOR TO JAMES E PRESTON WHO IS RELINQUISHING THE TITLE OF PRESIDENT BUT CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER POSITION HAS BEEN VACANT SINCE SEPTEMBER 1988 AVON DECLINED TO COMMENT ON MR LEWIS'S RESIGNATION BUT PEOPLE CLOSE TO THE COMPANY SAID HIS DEPARTURE REFLECTS THE COMPANY'S CONTINUING STRUGGLE TO MAINTAIN A BALANCE BETWEEN DIVERSIFYING BEYOND ITS TRADITIONAL AVON LADY SELLING APPROACH WHILE MAINTAINING ITS RELATIONSHIPS WITH ITS SALES REPRESENTATIVES THEY SAY THE 48YEAROLD MR LEWIS WHO WAS THE ARCHITECT BEHIND AVON'S RECENT FORAY INTO CATALOGS AND A TOLLFREE NUMBER HAD A BUSINESSLIKE APPROACH THAT DIDN'T ALWAYS WORK WELL IN MOTIVATING A LARGE DIRECTSALES FORCE PEOPLE OUTSIDE THE DIRECTSELLING BUSINESS MAY APPROACH THINGS LOGICALLY BUT A BIG PART OF DIRECTSELLING IS HEART NOT HEAD SAID AN EXECUTIVE FAMILIAR WITH THE SITUATION THE RESIGNATION OF MR LEWIS COMES AT A TIME WHEN AVON'S US BUSINESS IS CONTINUING TO SHOW SIGNS OF WEAKNESS SALES IN THE US WHICH GENERATE 40 OF AVON'S SALES FELL 4 IN THE THIRD QUARTER WHILE PRETAX PROFIT SANK 36 AVON SAID HALF OF THE PROFIT DECLINE WAS BECAUSE OF ADVERTISING SPENDING AND THE INTRODUCTION OF NEW SELLING METHODS WHILE THE OTHER HALF RESULTED FROM THE SALES DECLINE AVON SAID MR LEWIS IS LEAVING TO RETURN TO BUSINESS CONSULTING AND WILL CONTINUE TO WORK AS A CONSULTANT TO THE COMPANY MR LEWIS COULDN'T BE REACHED TO COMMENT MR LEWIS IS SUCCEEDED BY CHRISTINA A GOLD THE CURRENT HEAD OF AVON'S CANADIAN OPERATIONS SHE WAS NAMED A CORPORATE SENIOR VICE PRESIDENT AND PRESIDENT OF AVON'S US CANADIAN AND PUERTO RICAN OPERATIONS A SPOKESMAN NOTED THAT UNDER MS GOLD 46 THE CANADIAN BUSINESS HAS POSTED 8 TO 10 ANNUAL SALES INCREASES SHE'S AN EXCELLENT MOTIVATOR HE ADDED SHE'S WELLKNOWN AMONG THE REPRESENTATIVES SHE'S GOT A REAL SPIRIT MR ROBINSON A ONETIME CHIEF FINANCIAL OFFICER AT RJR NABISCO INC HAS BEEN PRAISED FOR ESTABLISHING STRICT INVENTORY CONTROLS AND REDUCING DEBT AT AVON AVON'S OVERALL EARNINGS HAVE PERFORMED WELL IN GOOD PART BECAUSE OF WHAT HE HAS DONE SAID ALICE BEEBE LONGLEY AN ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE NEW OPERATIONAL RESPONSIBILITIES HAVE LED SOME TO SPECULATE THAT MR ROBINSON 53 IS BEING GROOMED TO EVENTUALLY SUCCEED MR PRESTON 59 PRESTON'S NOT GOING TO BE AROUND FOREVER SAID JOSEPH KOZLOFF OF SMITH BARNEY SHEARSON OBVIOUSLY THEY WERE PREPARING THE WAY ASSUMING MR ROBINSON'S DUTIES IS EDWINA D WOODBURY WHO HAS BEEN NAMED A CORPORATE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MS WOODBURY 42 HAS BEEN VICE PRESIDENT OF OPERATIONS ANALYSIS 9311050103 931105 TECHNOLOGY BY LAURIE HAYS IT HAS BEEN MORE THAN 35 YEARS SINCE US BOBSLEDDERS HAVE WON A MEDAL IN THE OLYMPICS NOW A DESIGN TEAM HAS APPLIED THE COMPUTERAIDED TECHNIQUES USED FOR RACE CARS TO BUILD A BOBSLED TO RIVAL HANDCRAFTED EUROPEAN MODELS TOMORROW THE US TEAM IS SET TO CAREEN DOWN A TRACK IN KONIGSEE GERMANY IN THE FIRST RACE FOR THE WORLD CUP ITS STATEOFTHEART MODULAR SLED INCORPORATES THE BEST PIECES OF EUROPEAN MODELS AND SOME NEW FEATURES TO IMPROVE AIR FLOW ITS FRONT END TAKES THE SHAPE OF AN ARROWHEAD RATHER THAN THE TRADITIONAL ROUND SUBMARINE SHAPE RACECAR DRIVER GEOFF BODINE WATCHED THE US TEAM'S ABYSMAL PERFORMANCE IN THE 1992 GAMES AND INSPIRED THE EFFORT CONTRIBUTING MORE THAN 130000 HE TURNED TO CHASSIS DYNAMICS OXFORD CONN TO CRAFT THE SLED INTERNATIONAL BUSINESS MACHINES CHIPPED IN COMPUTERS AND SOFTWARE THE DESIGN TEAM TOOK APART VARIOUS EUROPEAN SLEDS LOGGING THEIR FEATURES INTO AN IBM PS/2 AND SIMULATING THEIR PERFORMANCE THE PARTS THAT DID WELL WERE KEPT THOSE THAT DIDN'T WERE REDESIGNED IN TRIAL RUNS EVERY TWIST AND TURN IS MONITORED BY UP TO 20 SPECIAL SENSORS PLACED ALL OVER THE SLED TO MEASURE SUCH FACTORS AS WIND SPEED GFORCES AND ACCELERATION THE SENSORS FEED DATA INTO A CIGARSHAPED BOX ON THE CHASSIS BETWEEN THE DRIVER'S LEGS AT THE END OF EACH PRACTICE RUN THE BOX IS LINKED TO AN IBM THINKPAD NOTEBOOK COMPUTER TO PROVIDE AN INSTANT PLAYBACK ON THE SCREEN THE COURSE IS SUPERIMPOSED OVER THE DATA USING 20 COLORS FOR VARIOUS CATEGORIES TO GAIN SUCH INSIGHTS AS HOW MANY CENTIMETERS THE SLED SLIPPED ON A CURVE THIS IS ALLOWED ONLY FOR PRACTICE RUNS NOT IN COMPETITION SO FAR THE US BOBSLED HAS TRACKED SOME IMPRESSIVE RESULTS TWO WEEKS AGO IN A PRACTICE RUN ON A COURSE IN LILLEHAMMER NORWAY WHERE THE WINTER GAMES WILL BE HELD NEXT FEBRUARY IT BEAT THE EXISTING WORLD RECORD BY 039 SECOND THAT MIGHT NOT SOUND LIKE MUCH BUT IT IS ENOUGH TO MAKE THE DIFFERENCE BETWEEN FIRST AND SIXTH PLACE SNEAKERS AREN'T JUST SNEAKERS ANYMORE FIRST THERE WAS REEBOK INTERNATIONAL AND THE PUMP THEN CAME SHOES WITH NAMES LIKE GALACTICA AND HEELS THAT BLINK AND TWINKLE NEXT UP FEATURES TO DRIVE PARENTS CRAZY AS SHOES PLAY TUNES SHOUT A NAME OR GROWL EVERY TIME THE CHILD TAKES A STEP SHOE DESIGNERS ARE ALSO HOPING TO TURN THE SNEAKER INTO A COMPUTER EAT YOUR HEART OUT MAXWELL SMART LA GEAR IS PLANNING APPLICATIONS THAT CAN MEASURE HOW HIGH YOU CAN JUMP AS WELL AS BLOOD PRESSURE PULSE AND DISTANCE TRAVELED THE KEY TO ALL THIS IS A MICROCOMPUTER EMBEDDED IN THE HEEL OR TONGUE OF THE SNEAKER LA GEAR BUYS OFFTHESHELF PROGRAMMABLE INTEGRATED CIRCUITS FROM MICROCHIP TECHNOLOGY CHANDLER ARIZ AND CONFIGURES THEM ON THIN CIRCUIT BOARDS THAT CONTAIN EVERYTHING FROM LITTLE LOUDSPEAKERS TO BATTERIES AND LIGHT SWITCHES THAT ACTIVATE WHEN THE FOOT STRIKES OR LEAVES THE GROUND MORE ADVANCED POSSIBILITIES CONFOUND DEVELOPERS HOW CAN THE DATA BE PRESENTED IN A READABLE FASHION AND WHERE SHOULD THE DISPLAY GO RIGHT NOW LA GEAR DESIGNERS ARE THINKING ABOUT PUTTING A SMALL POCKET INSIDE THE TONGUE OF THE SHOE THAT WILL DROP DOWN ON THE FOOT TO TAKE THE MEASUREMENTS SAYS DON LAWRENCE A PATENT ATTORNEY FOR LA GEAR A BIGGER HURDLE IS COST LA GEAR HAS PROMISED CUSTOMERS IT WOULDN'T SELL ANY SNEAKER FOR MORE THAN 85 CAN WE GET THESE THINGS IN A RANGE THAT PEOPLE WILL BE WILLING TO PAY FOR THEM MR LAWRENCE ASKS WE'RE NOT SURE HIGHTECH CONSULTANT JON GOLDMAN IS USING THE LATEST IN DATABASE AND FONT TECHNOLOGY TO ENCOURAGE KIDS TO TAKE UP A DECIDEDLY LOWTECH PURSUIT LETTER WRITING MR GOLDMAN A MOUNTAIN VIEW CALIF ADVISER ON PACIFIC RIMTECHNOLOGY INVESTMENTS BY DAY AND A CREATOR OF CHILDREN'S STORIES BY NIGHT HAS LAUNCHED A BURGEONING PENPAL BUSINESS HE CALLS IMAGINENGINE WHICH KIDS SUBSCRIBE TO FOR 2485 A YEAR HE USES WORDPERFECT TEXTANALYSIS SOFTWARE DESIGNED FOR TEACHERS TO MAKE SURE HIS STORIES GAMES AND RIDDLES USE SYNTAX AND VOCABULARY THAT FIT THE THREE AGE GROUPS HE TARGETS FROM PRESCHOOLERS TO FIFTHGRADERS THE STORIES ARE MAILED ON BRIGHTLY COLORED SHEETS OF PAPER AND MR GOLDMAN MAKES THEM LOOK HANDWRITTEN THANKS TO A SPECIAL COMPUTER FONT MADE BY SIGNATURE SOFTWARE HOOD RIVER ORE EVERY INSTALLMENT ENCOURAGES THE YOUNG RECIPIENTS TO WRITE BACK TO THE STORY HEROES SUCH AS SQUIRMY A CATERPILLAR ASPIRING TO BE A BUTTERFLY AND SHNORKY WHO IS HALFGIRAFFE HALFELEPHANT MR GOLDMAN USES BASIC WORDPROCESSING TO CUSTOMIZE THE STORIES FOR EACH PEN PAL HE IS TALKING TO POTENTIAL PARTNERS ABOUT TAKING HIS BUSINESS ONLINE TO INSPIRE KIDS TO LEARN HOW TO WRITE ON COMPUTERS BUT HE WORRIES THAT GOING THE NEXT TECHNOLOGICAL MILE MIGHT DESTROY THE PART THAT KIDS LOVE BEST RIPPING OPEN THE ENVELOPE AND GETTING THEIR HANDS ON SOMETHING THAT'S JUST FOR THEM CHILDREN WITH HOME COMPUTERS WATCH LESS TV SAYS A STUDY BY FUJI PHOTO FILM USA ONE PROBLEM 63 OF THE PARENTS SURVEYED SAID GAMES WERE THE MAIN ACTIVITY DRAWING KIDS TO THE COMPUTER PRODIGY SERVICE WILL OFFER INFONAUTICS' HOMEWORK HELPER WHICH LETS STUDENTS REVIEW ONLINE ARTICLES FROM MILLIONS OF PAGES OF REFERENCE MATERIALS 9311050102 931105 HEARD ON THE STREET TELMEX'S APPEAL WANES FOR GROWTH INVESTORS WHO REGARD IT NOW AS A STABLE DULL UTILITY BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME TO DISCONNECT TELEFONOS DE MEXICO SOME GROWTHSTOCK INVESTORS SAY LONG VIEWED AS THE STAR OF EMERGING MARKETS THE HUGE MEXICAN PHONE COMPANY SEEMS TO BE ON THE WAY TO JOINING THE BORING BUT STABLE WORLD OF UTILITY STOCKS ACCORDING TO THESE PROFESSIONAL STOCKPICKERS WHO CHASE AFTER COMPANIES WITH SIZZLING EARNINGS GROWTH WE ARE IN THE PROCESS OF SELLING THE LAST SHARES OF TELMEX WE OWN SAYS DENNIS LYNCH PRESIDENT OF LYNCH & MAYER MANAGER OF SOME 5 BILLION IN GROWTH STOCKS THERE HAS COME A POINT WHERE YOU HAVE TO LOOK AT THIS STOCK AS A NORMAL UTILITY TELMEX'S EARNINGS GROWTH MAY LOOK IMPRESSIVE BY US TELEPHONECOMPANY STANDARDS BUT WITH COMPETITION LOOMING IT ISN'T GOING TO BE WHAT IT WAS ANALYSTS THINK TELMEX AMERICAN DEPOSITARY RECEIPTS YIELD JUST 18 THOUGH THE PAYOUT SHOULD GROW THIS COMBINATION SLOWER GROWTH FATTER YIELDS ISN'T EXACTLY A GROWTHSTOCK INVESTOR'S IDEA OF EXCITEMENT MANY BROKERS ARE PUSHING TELMEX NOW AT 53 1/4 PAINEWEBBER HAS THE STOCK ON ITS SOCALLED FOCUS LIST SALOMON BROTHERS RECENTLY STRONGLY REITERATED ITS BUY RECOMMENDATION CALLING FOR A PRICE OF 75 IN 18 MONTHS BUT GROWTHSTOCK INVESTORS THINK TELMEX'S EARNINGS MOMENTUM IS AT A PEAK IT'S JUST AT THE POINT WHERE A LOT OF THE OPERATIONAL GAINS HAVE BEEN SEEN SAYS CARRIE SCHLOSS COMANAGER OF THE 300 MILLION KEMPER INTERNATIONAL FUND WHERE CAN TELMEX PROFIT MARGINS GO I AM NOT SAYING THEY ARE GOING DOWN BUT IT WOULD BE DIFFICULT TO HAVE THEM GO UP FROM HERE SHE HASN'T OWNED TELMEX FOR ABOUT A YEAR THIS IS A UTILITY TO MAKE IT SOMETHING ELSE IS NOT INTELLIGENT SAYS RICHARD LITTLE A PARTNER AT GMG/SENECA CAPITAL MANAGEMENT A SAN FRANCISCO FIRM MANAGING 14 BILLION HE SHED TELMEX SHARES NEAR THEIR LOWS ABOUT SIX MONTHS AGO HE WOULDN'T BUY THE STOCK EVEN 20 BELOW TODAY'S PRICE TELMEX DIDN'T HAVE ANY COMMENT TELMEX HAS ITS ATTRACTIONS THE COMPANY ENJOYED PROFIT MARGINS BEFORE INTEREST AND TAXES OF 433 FOR THE FIRST NINE MONTHS OF THIS YEAR AMONG THE HIGHEST OF THE WORLD'S PHONE UTILITIES TELMEX'S BUSINESS PLAN CALLS FOR 12 ANNUAL GROWTH IN NEW PHONE LINES THE STREET ENVISIONS NET INCOME GROWING ABOUT 16 TO 640 A SHARE IN 1994 FROM ABOUT 550 THIS YEAR ADJUSTED FOR INFLATION EARNINGS ARE EXPECTED TO GROW ABOUT 85 THE STOCK'S MULTIPLE SITS AT 83 TIMES EXPECTED 1994 EARNINGS BELOW THE MEXICAN MARKET'S PRICE/EARNINGS RATIO OF ABOUT 102 TODAY'S LOCK ON THE MEXICAN PHONE MARKET MAY NOT LAST MR LYNCH SAYS TELMEX'S GROSS VALUATION THE MARKET VALUE OF EQUITY PLUS DEBT DIVIDED BY THE NUMBER OF PHONE LINES OF 4350 PER LINE IS ONE OF THE HIGHEST AMONG INTERNATIONAL PHONE COMPANIES YOU ARE PAYING AN AWFUL LOT FOR THE PRIVILEGE OF THAT INCOME STREAM FLOWING OFF THOSE LINES HE SAYS THAT INCOME STREAM COULD RUN THIN IN THE NEXT FEW YEARS ANALYSTS SAY INVESTORS MAY BE UNDERESTIMATING THE POTENTIAL IMPACT COMPETITION COULD HAVE ON PROFITABILITY CAUTIONS BETTE MASSICK AN ANALYST AT SG WARBURG IN A REPORT ISSUED LAST MONTH MS MASSICK SAID NO TELEPHONE COMPANY AS ILLPREPARED AS TELMEX HAS EVER CONFRONTED COMPETITION SHE NOTES THAT COMPETITORS SWIPED 20 OF THE MARKET AWAY FROM TELECOM OF NEW ZEALAND A MORE DEVELOPED PHONE COMPANY TELMEX ONOTHER HAND IS STILL LAGGING IN TELEPHONE PENETRATION NETWORK MODERNIZATION EFFICIENCY AND CUSTOMER SERVICE COMPETITION DEPENDS ON HOW MEXICO'S GOVERNMENT DECIDES TO ADMINISTER BOTH LOCAL AND LONGDISTANCE CONCESSIONS BUT TELMEX SERVICE DRAWS COMPLAINTS FROM MANY MEXICANS LONGDISTANCE COMPANIES SUCH AS AMERICAN TELEPHONE & TELEGRAPH MCI COMMUNICATIONS AND SPRINT ARE EXPECTED TO VIEW A MEXICAN PRESENCE AS AN IMPERATIVE MS MASSICK BELIEVES SEEKING ENTRY IN 1996 MEANWHILE BELL ATLANTIC AND ITS MEXICAN PARTNER GRUPO IUSACELL APPEAR INTERESTED IN BOTH LOCAL AND LONGDISTANCE BUSINESS IN MEXICO GIVEN TELMEX'S HIGH LONGDISTANCE RATES AND POOR LOCAL SERVICE ITS PROFITS COULD ERODE RAPIDLY WITH STRONGER COMPETITION EVEN SO TELMEX SHOULD REMAIN A UTILITY THAT CAN MAINTAIN EARNINGS GAINS SAYS JAMES ENGLE CHIEF INVESTMENT OFFICER AT WOOD STRUTHERS & WINTHROP A NEW YORK INVESTMENT FIRM WE THINK THE BASE BUSINESS WILL BE STRONG ENOUGH TO INCREASE PERSHARE EARNINGS IN THE MIDTEENS ANNUALLY FOR THE REST OF THE DECADE HE IS HAPPY TO OWN A HALFMILLION TELMEX ADRS BUT DON'T EXPECT SUPPORT FROM THE GROWTHSTOCK CROWD THEY DON'T LIKE THREATENED FRANCHISES PERSONALLY I CAN FIND BETTER GROWTH STORIES SAYS MS SCHLOSS OF KEMPER TELMEX IS NOT THE AGGRESSIVE GROWTH STOCK THAT IT WAS ONE FINAL RISK SALOMON'S 75 PRICE TARGET FOR TELMEX IS BASED ON A 75 CHANCE THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL PASS IF NAFTA PASSES TELMEX COULD CLIMB 10 POINTS IN A FLASH BUT IF NAFTA IS IN TROUBLE THERE ISN'T GOING TO BE A BASKET BIG ENOUGH TO CATCH THIS STOCK OPINES MR LITTLE OF GMG/SENECA 9311050101 931105 ABREAST OF THE MARKET INDUSTRIAL AVERAGE SLUMPS 3689 ON CONTINUING INTEREST RATE FEARS BY LARRY BAUMAN AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK ROCKED BY ANOTHER DAY OF RISING INTEREST RATES STOCK PRICES FELL SHARPLY ALTHOUGH THE WEAKNESS OF THE BOND MARKET APPEARS TO BE RELATED TO SIGNS OF A PICKUP IN THE PACE OF ECONOMIC ACTIVITY AND NOT THE RESULT OF SURGING INFLATIONARY FEARS THE LOFTY LEVELS OF THE MAJOR STOCK INDEXES HAVE LEFT INVESTORS JITTERY ENOUGH TO WITHDRAW FROM THE MARKET AT THE FIRST SIGHT OF HIGHER RATES THE DECLINES IN THE EQUITY MARKET WERE WIDESPREAD BUT SEVERAL INTERESTRATE SENSITIVE AREAS INCLUDING S&LS BANKS AND UTILITIES WERE AMONG THE DAY'S BIGGEST LOSERS ON THE OTHER HAND THE LEADING GROUP ON THE UPSIDE WAS PRECIOUS METALS AN AREA THAT IS OFTEN USED AS A HAVEN AGAINST INFLATIONARY WORRIES THE DOW JONES INDUSTRIAL AVERAGE FELL 3689 OR 101 TO 362498 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX WAS DOWN 303 OR 118 TO 25347 AND THE STANDARD & POOR'S 500STOCK INDEX AT 45749 WAS DOWN 553 OR 119 THE NASDAQ COMPOSITE INDEX WAS OFF 1569 OR 203 TO 75726 ON THE BIG BOARD DECLINERS LED ADVANCERS 1656 TO 479 VOLUME WAS A STRONG 321155250 EVEN WHEN COMPARED WITH WEDNESDAY'S 340995680 SHARES SCOTT MARSH HEAD OF EQUITY TRADING AT DEAN WITTER REYNOLDS INC SAYS STOCKS TRIED TO POST AN EARLY DAY RALLY BUT THAT AFTER BOND PRICES BEGAN TO FALL THE MARKET ROLLED OVER ON FEARS OF HIGHER INTEREST RATES ERIC MILLER CHIEF INVESTMENT OFFICER AT DONALDSON LUFKIN & JENRETTE SAYS THE BEARISH TONE WAS FUELED BY RISING WORRIES THAT TODAY'S OCTOBER EMPLOYMENT REPORT MAY SHOW AN UNEXPECTEDLY SHARP RISE IN THE NUMBER OF JOBS CREATED SUCH AN INCREASE ESPECIALLY BECAUSE IT WOULD COME ON THE HEELS OF OTHER DATA THAT HAVE POINTED TO A RESURGING ECONOMY LIKELY WOULD PUSH INTEREST RATES HIGHER WHILE A MORE RAPID PACE OF ECONOMIC ACTION DOESN'T NECESSARILY IMPLY A SURGE IN INFLATION THERE IS WORRY AND NERVOUSNESS ABOUT A REBOUND OF INFLATIONARY PRESSURES MR MILLER SAYS MOREOVER HE SAYS HIGHER INTEREST RATES COULD SLOW THE PACE OF MUTUALFUND MONEY FLOWING INTO THE STOCK MARKET MR MARSH AT DEAN WITTER SAYS IT IS FAR FROM CLEAR WHETHER THE RECENT UPWARD MOVE IN INTEREST RATES IS SMALL OR MEANINGFUL BUT HE SAYS GIVEN SIGNS OF A GROWING ECONOMY AND THE HIGH LEVELS OF STOCK INDEXES PEOPLE ARE NOT AS CONFIDENT THAT INFLATION WILL REMAIN IN CHECK HE ADDS THAT THE HIGH LEVELS OF TRADING VOLUME SEEN IN RECENT DAYS IS AN INDICATION THAT WE'RE SEEING SOME MONEY BEING PULLED OUT AND THAT MANY INVESTORS ARE TAKING AN AGGRESSIVE SELLING POSTURE MR MARSH ALSO SAYS THE STRENGTH OF GOLD STOCKS REFLECTS CONCERNS THAT THERE IS AN INFLATIONARY THREAT MR MILLER SAYS THAT WHILE IT LIKELY ISN'T A MAJOR FACTOR PUSHING STOCK PRICE DOWN THE INDUSTRIAL AVERAGE'S INABILITY TO BREAK THROUGH 3700 MAY HAVE ADDED TO THE BEARISH PSYCHOLOGY OF THE MARKET SOME OF THE BIGGEST MOVES AMONG BIG BOARD STOCKS WERE RELATED TO THE RELEASE OF OCTOBER RETAIL SALES SHARES OF US SHOE CORP JUMPED 159 OR 1 1/2 TO 12 1/2 AFTER THE CINCINNATI RETAILER SAID TOTAL SALES FOR THE PERIOD WERE UP 59 TO 173 MILLION THE COMPANY SAID SAMESTORE SALES OF ITS WOMEN'S APPAREL OPTICAL AND FOOTWEAR RETAILING OPERATIONS INCREASED 92 IN THE FOUR WEEKS ENDED OCT 30 SHARES OF MERRYGOROUND FELL 1 1/8 OR 122 TO 8 1/8 THE COMPANY SAID SAMESTORE SALES FELL 17 THOUGH TOTAL SALES ROSE 38 TO 653 MILLION THE SPECIALTY RETAILER POSTED TOTAL SALES FOR THE 39WEEK PERIOD ENDED OCT 30 OF 6558 MILLION UP 127 FROM LAST YEAR GAP INC STOCK LOST 2 TO 34 1/8 THE COMPANY SAID SAMESTORE SALES IN THE MONTH FELL 2 COMPARED WITH A 2 INCREASE IN OCTOBER 1992 TOTAL SALES ROSE 8 TO 257 MILLION FROM 239 MILLION MEANWHILE SHARES OF SUN ENERGY PARTNERS PLUNGED 183 OR 1 5/8 TO 7 1/4 ORYX ENERGY SAID IT WILL NO LONGER PURCHASE NEWLY ISSUED PARTNERSHIP UNITS TO FUND SUN ENERGY'S CAPITAL OUTLAYS BEGINNING IN THE FOURTH QUARTER ORYX SAID SUN WHICH IS 98OWNED BY ORYX WILL FUND ITS CAPITAL OUTLAYS FROM INTERNALLY GENERATED FUNDS AND MAKE DISTRIBUTIONS TO LIMITED PARTNERS FROM CASH FLOW REMAINING AFTER THOSE OUTLAYS THE POLICY WILL REDUCE THE CASH PAID TO UNITHOLDERS ORYX SAID BUT WILL END THE ONGOING OWNERSHIP DILUTION FACED BY UNITHOLDERS THE DEC 10 DISTRIBUTION WON'T BE AFFECTED AMONG PRECIOUSMETALS STOCKS HECLA MINING GAINED 7/8 OR 82 TO 11 1/2 THE COMPANY POSTED A THIRDQUARTER LOSS OF NINE CENTS A SHARE A PENNY BETTER THAN THE YEARAGO THIRD QUARTER AND TWO CENTS BETTER THAN ANALYSTS' MEAN ESTIMATE OF A LOSS OF 11 CENTS SHARES OF HOMESTAKE MINING GAINED 7/8 TO 19 7/8 AND ASA LTD WAS UP 1 5/8 TO 47 3/4 ON HEAVIERTHANAVERAGE VOLUME 9311050100 931105 ECONOMY MAJOR RETAILERS SAW SALES SOFTEN DURING OCTOBER LATE WARM WEATHER HURT GAINS FROM '92 MONTH ANALYSTS NOT CONCERNED BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S LARGEST RETAILERS POSTED SLIGHTLY DISAPPOINTING SALES FOR OCTOBER AS WARM WEATHER AT THE END OF THE MONTH KEPT CONSUMERS FROM BUYING WINTER APPAREL BECAUSE THEY REFLECT UNUSUAL WEATHER RATHER THAN GENERAL ECONOMIC CONDITIONS THE RESULTS DON'T NECESSARILY MEAN SALES WILL BE LACKLUSTER DURING THE CRITICAL CHRISTMAS SEASON ANALYSTS SAID THEY ALSO SAID CONSUMERS ARE BUYING THEIR GIFTS CLOSER AND CLOSER TO THE HOLIDAY RATHER THAN STARTING OUT EARLY IN OCTOBER OCTOBER SAMESTORE SALES ROSE AN AVERAGE OF 46 TO 47 FROM THE PREVIOUS YEAR BASED ON THE WEIGHTED INDEXES OF SEVERAL RETAILERS' SALES COMPILED BY SALOMON BROTHERS INC AND ALEX BROWN & SONS INC THE SHOWING EITHER MET OR FELL BELOW MOST ANALYSTS' EXPECTATIONS MOSTLY REFLECTING POOR RESULTS AT SPECIALTY APPAREL RETAILERS AFTER DISAPPOINTING SPRING AND SUMMER SEASONS RETAIL SALES PICKED UP IN SEPTEMBER WHEN COOL WEATHER FINALLY ARRIVED SPURRING CLOTHING PURCHASES THAT MOMENTUM CONTINUED INTO THE FIRST PART OF OCTOBER BUT QUICKLY DROPPED OFF WHEN TEMPERATURES ROSE AND FIRES RAVAGED SOUTHERN CALIFORNIA UNSEASONABLY WARM TEMPERATURES IN THE LAST TWO WEEKS INTERRUPTED THE IMPROVEMENT IN OUR APPAREL SALES WE HAD BEEN EXPERIENCING SINCE LABOR DAY SAID JOSEPH E ANTONINI CHAIRMAN OF KMART CORP WHERE SALES AT STORES OPEN AT LEAST A YEAR ROSE ONLY 14 FROM THE YEAR BEFORE HE NOTED THAT APPAREL SALES HAVE PICKED UP THIS MONTH AS NORMAL FALL WEATHER SETTLED IN AGAIN SEARS ROEBUCK & CO HOWEVER REGISTERED ANOTHER MONTH OF SIZZLING SALES SAYING SAMESTORE SALES SOARED 13 AS CONSUMERS CONTINUED TO RESPOND FAVORABLY TO A REJUVENATED APPAREL DIVISION CONSUMERS INCREASINGLY DISENCHANTED WITH BROWSING THE MALLS ARE DASHING INTO BIG ANCHOR STORES LIKE SEARS RATHER THAN TRYING TO SHOP AT SEVERAL DIFFERENT SPECIALTY STORES ANALYSTS SAID IN ADDITION DEPARTMENT STORES ARE ADVERTISING MUCH MORE HEAVILY THAN THE SPECIALTY STORES NOTED ROBERT BUCHANAN AN ANALYST WITH ALEX BROWN IN A SLOW ENVIRONMENT FOR CONSUMER SPENDING YOU NEED TO CREATE A SENSE OF URGENCY HE SAID SAMESTORE SALES AT MAY DEPARTMENT STORES INC ROSE A ROBUST 58 CONTINUING TO BENEFIT FROM A LOWERPRICE STRATEGY BEGUN SEVERAL MONTHS AGO JC PENNEY CO POSTED A 36 INCREASE IN SAMESTORE RESULTS THAT WHILE HURT BY THE FIRES IN SOUTHERN CALIFORNIA REFLECT STRONG SALES OF EVERYTHING FROM FURNITURE TO MEN'S AND WOMEN'S SPORTSWEAR THE COMPANY SAID SPECIALTYAPPAREL RETAILERS WHICH GOT A LIFT IN SEPTEMBER WHEN THE WEATHER COOLED AND STUDENTS WERE BUYING BACKTOSCHOOL CLOTHES LAGGED BEHIND THE REST OF THE INDUSTRY IN OCTOBER SAMESTORE SALES AT LIMITED INC WERE FLAT AND THEY INCHED UP 1 AT CHARMING SHOPPES INC AND 2 AT TJX COS GAP INC'S SAMESTORE SALES FELL 2 BUT THE COMPANY SAID IT MARKED DOWN SIGNIFICANTLY LESS MERCHANDISE THAN IN THE YEAREARLIER PERIOD WHICH HELPED ITS FISCAL THIRDQUARTER PROFIT MARGIN MERRYGOROUND ENTERPRISES INC STILL HAVING TROUBLE SELLING ITS YOUNG MEN'S CLOTHING POSTED A WHOPPING 17 DROP IN COMPARABLESTORE SALES WHILE OTHER DISCOUNT STORES POSTED SLUGGISH SALES INDUSTRY LEADER WALMART STORES INC CONTINUED TO OUTPERFORM COMPETITORS WITH AN 8 INCREASE IN SAMESTORE SALES KMART THE NO 2 RETAILER IN REPORTING ITS DISAPPOINTING SAMESTORE SALES INCREASE ALSO SAID IT EXPECTS TO REPORT FISCAL THIRDQUARTER EARNINGS FELL FROM THE YEARBEFORE 122 MILLION OR 27 CENTS A SHARE BECAUSE OF A BIG LOSS AT ITS PACE MEMBERSHIP WAREHOUSE UNIT AND A RETROACTIVE TAXRATE INCREASE OCTOBER SALES SHOULDN'T BE EXAMINED TOO CLOSELY FOR CLUES TO WHAT CONSUMERS WILL DO AT CHRISTMASTIME ANALYSTS SAID MORE AND MORE PEOPLE ARE WORKING LONGER HOURS AND DON'T HAVE TIME TO SHOP SO THEY'LL WAIT UNTIL THE LAST MINUTE SAID L WAYNE HOOD AN ANALYST AT PRUDENTIAL SECURITIES ANALYST JEFFREY FEINER OF SALOMON BROTHERS SAID HE'S STILL OPTIMISTIC BECAUSE INVENTORY AND EXPENSEWISE RETAILERS ARE BEING VERY CONSERVATIVE WHICH BODES WELL FOR THEIR BOTTOM LINES THOSE FACTORS COMBINED WITH A MORE AGGRESSIVE PACE IN SPENDING MEANS IT SHOULDN'T BE A BAD CHRISTMAS HE PREDICTED 9311050099 931105 MARKETING & MEDIA CONCORD NH PAPER ORDERED TO PAY OVERTIME RULING MAY HAVE WIDE EFFECT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL COURT IN NEW HAMPSHIRE ORDERED THE CONCORD MONITOR NEWSPAPER TO PAY REPORTERS AND PHOTOGRAPHERS OVERTIME WAGES IN A RULING WITH POTENTIAL IMPACT FOR OTHER MEDIA CONCERNS THE RULING IN THE US DISTRICT COURT IN CONCORD CAME IN A 12YEAR LEGAL DISPUTE BETWEEN THE MONITOR AND THE US DEPARTMENT OF LABOR THAT TURNED ON THE ISSUE OF WHETHER THE JOURNALISTS WERE PROFESSIONALS UNDER THE FEDERAL LABOR LAWS WHICH WOULD EXEMPT THEIR EMPLOYERS FROM PAYING OVERTIME IN HIS DECISION JUDGE SHANE DEVINE RULED THAT JOURNALISTS BY AND LARGE DON'T REQUIRE EXTRA STUDY OR DEGREES NOR DO THEY MEET THE CREATIVITY CRITERIA OF ARTISTIC EXEMPTION AND THEREFORE HAD LITTLE IN COMMON WITH WORKERS REGARDED AS PROFESSIONALS JUDGE DEVINE CAUTIONED THAT THE FACTS OF THE MONITOR CASE WERE SO PARTICULAR THAT HIS RULING MIGHT NOT BE PRECEDENTIAL BUT TOGETHER WITH A SIMILAR RULING INVOLVING NBC AND TELEVISION EMPLOYEES EARLIER THIS YEAR IT COULD HELP BUILD A SET OF CASES MAKING IT HARDER FOR MEDIA CONCERNS TO AVOID OVERTIME COSTS A SIMILAR CASE INVOLVING THE WASHINGTON POST CO'S FLAGSHIP NEWSPAPER BEGAN IN 1988 IS STILL PENDING THERE IS NO QUESTION BUT THAT SOME OF THE WORK PRODUCT OF THE EMPLOYEES PRESENTED AS EVIDENCE AT TRIAL DEMONSTRATED CREATIVITY INVENTION IMAGINATION AND TALENT JUDGE DEVINE WROTE IN HIS DECISION BUT THE BULK OF SUCH EVIDENCE IS NOT OF THIS ILK OVERTIME HAS LONG BEEN A SORE POINT BETWEEN EMPLOYERS AND JOURNALISTS MANY OF WHOM ROUTINELY WORK MORE THAN 40 HOURS A WEEK THE THRESHOLD FOR TIMEANDAHALF COMPENSATION UNDER FEDERAL LAWS I SINCERELY HOPE THIS WILL CHANGE THE VIEW OF MANAGEMENT TOWARD PAYING OVERTIME TO REPORTERS SAID CHARLES DALE PRESIDENT OF THE NEWSPAPER GUILD BUT I'M NOT OPTIMISTIC BECAUSE SO MANY EMPLOYERS DISCOURAGE THEIR REPORTERS EDITORS AND PHOTOGRAPHERS FROM FILING FOR OVERTIME JUDGE DEVINE ORDERED THE MONITOR TO PAY A GROUP OF 12 REPORTERS AND PHOTOGRAPHERS 21000 IN DAMAGES FOR FAILURE TO PAY OVERTIME UNDER THE FAIR LABOR STANDARDS ACT THE RULING APPLIED TO WORK PERFORMED FROM JUNE 22 1979 TO JAN 25 1980 A SPOKESMAN FOR THE NEWSPAPER SAID IT HASN'T DECIDED WHETHER TO APPEAL PENNY LIEBERMAN OF JACKSON LEWIS SCHNITZLER & KRUPMAN A LAW FIRM SPECIALIZING IN LABOR ISSUES SAID THE CASE HIGHLIGHTS A GROWING CHALLENGE BY NEWSPAPER PUBLISHERS TO THE FAIR LABOR STANDARDS LAW THERE HAS BEEN A TREND TOWARD FINDING JOURNALISTS TO NOT BE EXEMPT MS LIEBERMAN SAID BUT THESE OPINIONS HAVE BEEN BASED ON THE SPECIFIC FACTS OF EACH CASE AS OPPOSED TO ESTABLISHING A CUTANDDRIED POSITION SINCE ESTABLISHMENT OF THE FAIR LABOR STANDARDS ACT COURTS HAVE ESTABLISHED A TWOPRONGED METHODOLOGY EXEMPTING LEARNED PROFESSIONALS AND ARTISTIC PROFESSIONALS FROM OVERTIME LEGAL EXPERTS SAID NEWSPAPER REPORTERS AND PHOTOGRAPHERS FALL SOMEWHERE IN BETWEEN THE TWO CATEGORIES COURTS' DIFFICULTY IN ASCERTAINING THE PROFESSIONAL STATUS OF WRITERS HAS CREATED SOME INTERESTING CLASSIFICATIONS FOR INSTANCE EDITORIAL WRITERS ADVERTISING COPYWRITERS CRITICS COLUMNISTS AND TECHNICAL WRITERS HAVE RECEIVED EXEMPTIONS FROM THE LAW IN THE PAST WHILE NEWSPAPER REPORTERS HAVE NOT 9311050098 931105 POTOMAC WATCH VOTERS TO BILL DO YOU WANT TO BE FLORIOED BY PAUL A GIGOT I HAVE A VERY PERSONAL FEEL ABOUT THIS WHAT YOU DO ON TUESDAY SENDS A HUGE SIGNAL ACROSS THIS COUNTRY REPUBLICANS ARE SUPPOSED TO GLOAT WHEN DEMOCRATS TAKE A DRUBBING BUT IT'S REALLY WORTH NOTING WHEN DEMOCRATS ARE HAPPY TOO I ALWAYS LIKE IT WHEN THE OLD PARADIGM DIES SAYS ONE CLINTON ADMINISTRATION OFFICIAL POINTING TO DEFEATS IN LIBERAL NEW YORK AND NEW JERSEY AND WHILE HILLARY CLINTON IS GLUM AL FROM CHARTER NEW DEMOCRAT AS HEAD OF THE DEMOCRATIC LEADERSHIP COUNCIL PREFERS A POSITIVE CAROM SHOT TUESDAY WAS A GREAT DAY FOR NEW DEMOCRATS HE SAYS POINTING TO BIG VICTORIES BY REFORM CANDIDATES IN CLEVELAND AND DETROIT AS FOR NEW YORK AND NEW JERSEY HE DEADPANS IT CERTAINLY SHOWS YOU CAN'T PUT TOGETHER THE OLD DEMOCRATIC COALITION MR FROM IS EXPOSING A BROADER DEBATE AMONG DEMOCRATS THAT HAS ECHOED THROUGH PRESIDENT CLINTON'S FIRST YEAR WHAT IS THE BEST STRATEGY TO WIN OVER THE MIDDLE CLASS AND PUT TOGETHER A NEW DEMOCRATIC MAJORITY TUESDAY'S RESULTS WERE OK FOR THE FROM FACTION IN THAT DEBATE BUT NOT SO GOOD FOR WHAT MIGHT BE CALLED THE HILLARY CLINTONJIM FLORIO FACTION MR CLINTON NOW HAS SOME DECIDING TO DO ALL CLINTON DEMOCRATS AGREE ON MANY THINGS OF COURSE NOT LEAST THE SOCIAL ISSUES THAT ONCE DAMAGED LIBERALS SO EVEN MR FLORIO PRODDED BY CLINTON STRATEGIST JAMES CARVILLE SOUNDED TOUGH ON CRIME AND WELFARE MOTHERS THAT SIDE OF THE NEW DEMOCRAT AGENDA ALMOST SAVED HIM BUT HIS DOWNFALL CAME ON THE OTHER SIDE WHICH INVOLVES ECONOMICS AND THE ROLE OF GOVERNMENT HE HAD RAISED TAXES AND REDISTRIBUTED THE PROCEEDS LIKE A GOOD TRADITIONAL DEMOCRAT IT DIDN'T WORK AND THIS IS WHERE EVEN NEW DEMOCRATS ARE DIVIDED REGARDING THE MIDDLE CLASS SAYS ONE WHITE HOUSE AIDE THE DEBATE IS WHETHER TO BUY 'EM OR EARN 'EM TO OVERSIMPLIFY THE MODERATE AL FROM AND DAVID GERGEN ET AL FACTION WANTS TO EARN MIDDLECLASS VOTES BY STRESSING GOVERNMENT REFORM CRIME AND WELFARE AND ECONOMIC GROWTH WE OUGHT TO BE FOR REFORM NOT REDISTRIBUTION SAYS MR FROM THE BUY 'EM CAMP MEANWHILE INCLUDES POLLSTER STAN GREENBERG LIBERALS IN CONGRESS AND JIM FLORIO'S BIGGEST FAN THE FIRST LADY THEY WANT TO WIN THE MIDDLE CLASS BY BATHING IT IN NEW GOVERNMENT BENEFITS SUCH AS HEALTH CARE EVEN IF THEY HAVE TO RAISE TAXES UNLIKE THE FROM FACTION THEY PREFER NOT TO PICK FIGHTS WITH DEMOCRATIC INTEREST GROUPS SUCH AS LABOR UNIONS THEY'D RATHER BASH THE RICH AND CERTAIN BUSINESS VILLAINS AS IS HIS WONT BILL CLINTON HAS TRIED TO AGREE WITH BOTH HE WANTS TO REINVENT GOVERNMENT BUT HE ALSO LIKES HILLARY'S SCHEME FOR NATIONAL HEALTH INSURANCE YET IN PRACTICE THE BUY 'EM FACTION HAS SO DOMINATED THE WHITE HOUSE AGENDA THAT MR CLINTON IS IN DANGER OF BEING FLORIOED HIMSELF MRS CLINTON'S HEALTH CARE PASSION IN PARTICULAR IS BECOMING A BLACK HOLE THAT SUCKS IN THE REST OF MR CLINTON'S AGENDA LAST WEEK MR CLINTON AND VICE PRESIDENT AL GORE TRIED TO PLUG SOME SPENDING REFORMS BUT AT SIX THAT SAME NIGHT HILLARY'S ALLIES BEGAN LEAKING HEALTH CARE DETAILS THE REFORM STORY ENDED UP WITH THE WANT ADS THEN THIS MONDAY MRS CLINTON UPSTAGED A PRESIDENTIAL NAFTA EVENT WHEN SHE DECIDED TO RIP THE INSURANCE COMPANIES GUESS WHO MADE THE EVENING NEWS THIS MAY ALL BE ACCIDENTAL BUT THE EFFECT IS TO DEFINE MR CLINTON MAINLY BY HIS WIFE'S GOVERNMENTCONTROLLED HEALTH PLAN JUST AS HE DID WITH HIS MIDDLECLASS TAX FLIPFLOP MR CLINTON IS ONCE AGAIN IDENTIFYING HIMSELF AS AN OLD DEMOCRAT INSTEAD OF AN AGENT OF CHANGE HE'S BECOMING PART OF THE STATIST QUO THAT JUDGMENT IS BEGINNING TO SHOW UP IN THE POLLS WHILE MR CLINTON HAD A 20POINT ADVANTAGE OVER REPUBLICANS ON THE TAX ISSUE LAST ELECTION DAY HE WAS 22 POINTS BEHIND BY THIS JULY ACCORDING TO A BIPARTISAN POLL BY ED GOEAS AND CELINDA LAKE A SMALLER ADVANTAGE ON CRIME HAS ALSO BECOME A DEFICIT AND LAST WEEK'S CNNGALLUP POLL SHOWED THAT ONLY 12 OF VOTERS THOUGHT THE HEALTH PLAN WAS DESIGNED TO HELP THE MIDDLE CLASS 40 THOUGHT IT WAS REDISTRIBUTION FOR THE POOR HIS STANDING IS ESPECIALLY WEAK IN THE SOUTH WHERE VIRGINIA DEMOCRATS DIDN'T INVITE HIM TO CAMPAIGN AND CONGRESSIONAL MODERATES ARE REBELLING FROM HIS HEALTH PLAN DEMOCRATS AND THEIR MEDIA ALLIES ARE NONETHELESS SPINNING THAT THIS ELECTION WAS MORE ABOUT INCUMBENTS THAN DEMOCRATS THIS IS SUPPOSED TO BE COMFORTING MAYBE SOMEONE SHOULD TELL THEM THAT THEY ARE THE INCUMBENTS SHOULD GOVERNMENT PROVIDE MORE SERVICES WITH HIGHER TAXES OR FEWER SERVICES WITH LOWER TAXES 9311050097 931105 CANADA WILL BE FLEXIBLE OVER DEMANDS FOR REVAMPING NAFTA LIBERALS INDICATE BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA CANADA'S NEW LIBERAL PARTY GOVERNMENT SIGNALED THAT IT WAS PREPARED TO BE FLEXIBLE OVER ITS DEMANDS FOR A RENEGOTIATION OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE LIBERALS WHO WON CANADA'S OCT 25 ELECTION HAVE DEMANDED THAT THE TRADE PACT BE BROADENED TO INCLUDE AMONG OTHER THINGS PROVISIONS TO PREVENT TRADE REMEDY LAWS FROM BEING USED FOR TRADE HARASSMENT ACTIONS SUCH PROVISIONS WOULD INCLUDE CODES DEFINING PERMISSIBLE SUBSIDY AND PRICING PRACTICES TRADE MINISTER ROY MACLAREN TOLD REPORTERS THAT THE PLANNED INTERNATIONAL TRADE AGREEMENT UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WILL HAVE A SUBSIDIES CODE THAT COULD GO SOME DISTANCE TOWARD MEETING OUR CONCERNS ABOUT NAFTA HE NOTED THAT THE PLANNED GATT ACCORD WOULD TAKE PRECEDENCE OVER THE NAFTA PACT MR MACLAREN WHO IS VIEWED AS A FREE TRADER SPOKE TO REPORTERS AFTER HE AND OTHER MEMBERS OF PRIME MINISTER JEAN CHRETIEN'S CABINET WERE SWORN INTO OFFICE YESTERDAY THE NEW GOVERNMENT REPLACES A PROGRESSIVE CONSERVATIVE PARTY ADMINISTRATION WHICH SIGNED THE NAFTA AGREEMENT LAST YEAR WITH THE US AND MEXICO THE LIBERALS CLAIM THAT THE MAJOR FLAW IN NAFTA IS THE ABSENCE OF A COMMON SET OF TRADING RULES AND PROCEDURES TO DEAL WITH SUBSIDY AND PRICING MATTERS SUCH RULES ARE NEEDED THEY SAY TO PREVENT US PROTECTIONISTS FROM CONTINUING THEIR ALLEGED HARASSMENT OF CANADIAN PRODUCTS SUCH AS LUMBER PORK AND STEEL MR CHRETIEN TOLD REPORTERS THAT HE EXPLAINED CANADA'S POSITION LAST WEEK TO PRESIDENT CLINTON AND MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI MR CHRETIEN REAFFIRMED CANADA'S DEMAND FOR A COMMON SET OF RULES TO GOVERN TRADE AMONG THE THREE COUNTRIES MURRAY SMITH DIRECTOR OF THE OTTAWABASED CENTRE FOR TRADE POLICY AND LAW SAID THE LIBERAL GOVERNMENT'S DECISION TO LOOK TO THE PLANNED GATT AGREEMENT AS THE BASIS FOR SUBSIDY AND ANTIDUMPING CODES WAS A SENSIBLE AND CONSTRUCTIVE WAY TO AVOID A POTENTIAL DEADLOCK WITH THE US AND MEXICO MR MACLAREN SAID THE LIBERAL GOVERNMENT INTENDS TO PURSUE A MORE GLOBAL TRADE POLICY THAN THE PREVIOUS CONSERVATIVE ADMINISTRATION WHICH EMPHASIZED TRADE RELATIONS WITH THE US CANADA HAS BECOME STEADILY MORE DEPENDENT ON ITS TRADE WITH THE US IN THE FIRST EIGHT MONTHS OF THIS YEAR THE US TOOK MORE THAN 80 OF CANADA'S EXPORTS TWENTY YEARS AGO THE US BOUGHT 67 OF CANADA'S EXPORTS MR MACLAREN'S APPOINTMENT AS TRADE MINISTER WAS EXPECTED AS WAS THE APPOINTMENT OF PAUL MARTIN AS FINANCE MINISTER BOTH REPRESENT THE CONSERVATIVE WING OF THE LIBERAL PARTY MR MARTIN A FORMER MONTREAL BUSINESSMAN TOLD REPORTERS THAT HE DIDN'T EXPECT TO HAVE ANY DIFFICULTY GETTING ALONG WITH BANK OF CANADA GOVERNOR JOHN CROW SOME LIBERALS INCLUDING MR CHRETIEN HAVE CRITICIZED MR CROW FOR ALLEGEDLY BEING OBSESSED WITH STABLE PRICES AT THE EXPENSE OF ECONOMIC GROWTH AND JOBS MR CHRETIEN NAMED A VETERAN LIBERAL POLITICIAN ANDRE OUELLET AS FOREIGN MINISTER 9311050096 931105 NEW YORK MERC'S ENERGY TRADING BECOMES GLOBAL BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON THE NEW YORK MERCANTILE EXCHANGE BEGAN GLOBAL TRADING OF ITS ENERGY FUTURES AND OPTIONS CONTRACTS BY LINKING ITS AUTOMATED DEALING SYSTEM WITH TRADERS IN LONDON THE COMPUTER SCREEN DEALING SYSTEM KNOWN AS ACCESS ENABLES LONDON AND US TRADERS TO DEAL ON THE WORLD'S LARGEST ENERGY MARKET VIRTUALLY AROUND THE CLOCK PATRICK THOMPSON PRESIDENT OF THE EXCHANGE SAID IN AN INTERVIEW NOW THAT LONDON IS DIRECTLY LINKED WITH NEW YORK MR THOMPSON SAID HE EXPECTS TRADING ON THE ACCESS SYSTEM TO DOUBLE TO 5000 CONTRACTS A DAY BY THE BEGINNING OF NEXT YEAR ACCESS WILL ALSO OPEN AN HOUR EARLIER DURING THE FIRST QUARTER OF NEXT YEAR HE SAID US TRADING ON ACCESS BEGAN AT THE END OF JUNE AND THERE ARE NOW 98 AUTOMATED WORK STATIONS BASED MAINLY IN NEW YORK HOUSTON AND ON THE WEST COAST MR THOMPSON SAID LONDON WAS THE SECOND STEP IN THE GLOBAL OPERATION TEN BROKERS AND COMPANIES HERE INCLUDING MOBIL SALES & SUPPLY CORP ARE LINKED TO NEW YORK FIVE MORE LONDON FIRMS SOON WILL BE JOINING THE SYSTEM AND MR THOMPSON IS AIMING FOR 150 INTERNATIONAL COMPUTER TRADING LINKS NEXT YEAR TO CONNECT ACCESS WITH ASIA THE NEW YORK MERC IS IN DISCUSSIONS WITH MARKETS AND REGULATORS IN SINGAPORE AND SYDNEY AUSTRALIA MR THOMPSON SAID HONG KONG AND TOKYO ARE ALSO POSSIBLITIES HE ADDED THE NEW YORK EXCHANGE MAINLY DEALS IN OIL AND GAS FUTURES AND OPTIONS BUT IT ALSO MAINTAINS AN ACTIVE PLATINUM MARKET ALMOST ALL OF THE 215000 AVERAGE DAILY TRADES AT THE EXCHANGE TAKE PLACE ON ITS TRADING FLOOR FROM 945 AM TO 310 PM EASTERN TIME OFFICIALS SAID ACCESS OPENS AT 5 PM EASTERN TIME AFTER FLOOR TRADING HAS ENDED AND REMAINS OPEN UNTIL 8 AM THE FOLLOWING DAY MOST OF THE ACCESS DEALINGS TAKE PLACE IN THE EVENING IN NEW YORK AND BETWEEN 4 AM AND 8 AM DURING LONDON'S MORNING TRADING HOURS THE ELECTRONIC LINK ISN'T EXPECTED TO AFFECT TRADE ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE DEALERS SAID TRADE SHOULD INCREASE ON BOTH EXCHANGES DEALERS ADDED MANY DEALERS HOPE TO USE THE SYSTEM TO TAKE ADVANTAGE OF ARBITRAGE POSSIBILITIES PROFITING FROM PRICE DIFFERENCES BETWEEN THE VARIOUS OIL PRODUCTS 9311050095 931105 COMMODITIES CORN FUTURES PRICES COULD JUMP TO 3 A BUSHEL AS HARVEST MIGHT NOT FILL US EXPORT DEMAND BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SOME US GRAIN ANALYSTS SAY CORN FUTURES PRICES COULD ROCKET TO 3 A BUSHEL WITHIN SEVERAL MONTHS THE CORN MARKET DISAPPOINTED MANY FARMERS THIS PAST SUMMER BY SHRUGGING OFF MUCH OF THE CROP DAMAGE CAUSED BY RECORD RAIN AND FLOODING ACROSS THE MIDWEST POOR EXPORT DEMAND AMONG OTHER THINGS DOUSED SEVERAL RALLIES AT THE CHICAGO BOARD OF TRADE BUT ANOTHER ROUND OF LOWER HARVEST ESTIMATES BY GRAIN ANALYSTS THIS WEEK IS FUELING SPECULATION THAT US AGRICULTURE WON'T HAVE ENOUGH CORN TO FULLY SATISFY BOTH EXPORT DEMAND AS WELL AS THE DOMESTIC NEEDS OF MILLERS AND LIVESTOCK PRODUCERS SPARKS COS A WIDELY WATCHED CROP FORECASTING CONCERN IN MEMPHIS TENN TOLD ITS CLIENTS LATE YESTERDAY TO EXPECT THE CORN HARVEST UNDER WAY IN THE MIDWEST TO TOTAL 669 BILLION BUSHELS WHICH WOULD BE DOWN 29 FROM THE RECORD 1993 CORN HARVEST ALLENDALE INC A CRYSTAL LAKE ILL FUTURES BROKERAGE FIRM SAYS THE CORN CROP WILL EVENTUALLY TOTAL 651 BILLION BUSHELS BASED ON THE REVISED HARVEST ESTIMATES US CORN STOCKPILES COULD SHRINK BELOW ONE BILLION BUSHELS BY AUGUST WHICH WOULD BE THE LOWEST STOCKSTOUSE RATIO SINCE THE MID1970S BASED ON HISTORY CORN COULD HIT 3 A BUSHEL FOR A TIME SAID RICHARD A LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR MARCH DELIVERY ROSE 325 CENTS A BUSHEL TO SETTLE AT A LIFE OF CONTRACT HIGH OF 27175 A BUSHEL ALTHOUGH MANY ANALYSTS DOUBT CORN PRICES COULD HOLD FOR VERY LONG AT THE 3 LEVEL HITTING IT WOULD BE SIGNIFICANT FOR FARMERS THAT PRICE IN THE PAST HAS ENCOURAGED FARMERS TO EXPAND PRODUCTION OFTEN TO THE POINT OF OVEREXPANDING THE AGRICULTURE DEPARTMENT COULD DAMP ANY RALLY IF THE THREAT OF A CROP SHORTAGE PROMPTS IT TO DO MORE TO ENCOURAGE CORN FARMERS TO PLANT LAND IN THE SPRING FARMERS ENROLLED IN THE GOVERNMENT'S CORN PRICE SUPPORT PROGRAM ARE REQUIRED TO IDLE 5 OF THEIR ELIGIBLE ACREAGE ANALYSTS SAID THE GOVERNMENT MIGHT REVISE THAT REQUIREMENT IF THE MONTHLY HARVEST ESTIMATES SLATED TO BE RELEASED TUESDAY SIGNAL UNCOMFORTABLY TIGHT STOCKPILES THE AGRICULTURE DEPARTMENT IN OCTOBER PREDICTED A 696 BILLION BUSHEL CORN CROP DOWN 37 FROM ITS SEPTEMBER ESTIMATE BILL BIEDERMANN ALLENDALE VICE PRESIDENT OF RESEARCH ALSO CALCULATES THAT CORN FUTURES PRICES COULD HIT 3 A BUSHEL BY THE SPRING IF THE GOVERNMENT DOESN'T MOVE TO INCREASE STOCKPILES THE US CORN SUPPLY WHICH INCLUDES THE CROP LEFT OVER FROM LAST YEAR AS WELL AS THE CURRENT HARVEST WILL FALL SHORT BY SEVERAL HUNDREDS OF MILLIONS OF BUSHELS OF WHAT IS NECESSARY FOR DOMESTIC USE AND EXPORT PLANS MR BIEDERMANN SAID WHEAT PRICES JUMPED YESTERDAY PARTLY ON SPECULATION THAT GOOD QUALITY CORN IS SO TIGHT THAT RANCHERS IN STATES SUCH AS COLORADO ARE BEGINNING TO FEED THEIR CATTLE WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE YESTERDAY THE WHEAT CONTRACT FOR DECEMBER DELIVERY JUMPED 95 CENTS A BUSHEL TO SETTLE AT 3435 A BUSHEL THE WHEAT RALLY WAS ALSO FUELED BY REPORTS THE US GOVERNMENT IS MULLING WHETHER TO OFFER 700 MILLION OF EXPORT LOAN GUARANTEES TO RUSSIA AGRICULTURE SECRETARY MIKE ESPY LATER SAID HE ISN'T AWARE OF ANY DEAL SOYBEAN PRICES ALSO JUMPED ON SPECULATION THAT THE GOVERNMENT NEXT WEEK WILL TRIM ITS MONTHLY ESTIMATE OF THE SOYBEAN HARVEST WHICH IS FINISHING ACROSS THE MIDWEST LAST MONTH THE DEPARTMENT FORECAST THE US SOYBEAN HARVEST WILL DROP 14 TO 189 BILLION BUSHELS FROM LAST YEAR IN OTHER COMMODITY MARKETS YESTERDAY COFFEE COFFEE FUTURES PRICES PLUNGED AFTER A DISAPPOINTING AUCTION IN BRAZIL IN WHICH THE BRAZILIAN GOVERNMENT APPARENTLY FAILED TO MEET ITS GOALS UNDER AN EXPORTLIMITING AGREEMENT AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE PRICE OF THE ACTIVELY TRADED DECEMBER COFFEE FUTURES CONTRACT WAS DOWN 315 CENTS TO 7515 CENTS A POUND AT AN AUCTION WEDNESDAY THE BRAZILIAN GOVERNMENT BOUGHT ONLY 1750 BAGS OF COFFEE THAT TOTAL WAS FAR SHORT OF THE NEARLY 200000 BAGS THE GOVERNMENT NEEDED TO BUY TO ADHERE TO AN EXPORTLIMITING AGREEMENT WITH OTHER LATIN AMERICAN AND AFRICAN COFFEEPRODUCING NATIONS ANALYSTS SAID ALL EYES WILL BE ON A SECOND STAGE OF THE BRAZILIAN COFFEE AUCTION WHICH IS SCHEDULED FOR TODAY IF WE SEE A REPEAT PERFORMANCE OF THE WEDNESDAY AUCTION THE MARKET COULD BE IN JEOPARDY AGAIN SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH ENERGY PETROLEUM PRICES DRIFTED LOWER IN LIGHT ACTIVITY THAT CONTRASTED SHARPLY WITH THE TRADING AND PRICING VOLATILITY OF EARLIER THIS WEEK CRUDE OIL FOR DECEMBER DELIVERY SETTLED NINE CENTS LOWER AT 1740 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL AND UNLEADED GASOLINE PRICES ALSO WERE DOWN BUT NATURAL GAS FUTURES ROSE SLIGHTLY TRADERS SAID THERE WERE NO CLEAR PRICING SIGNALS YESTERDAY BUT NOTED THAT THE INTERNATIONAL ENERGY AGENCY'S MONTHLY REPORT ON OIL SUPPLY AND DEMAND DUE OUT TODAY COULD PROVIDE SOME DIRECTION TO THE OIL MARKETS 9311050094 931105 WHO'S NEWS OPPENHEIMER & CO OPPENHEIMER & CO NEW YORK VICE CHAIRMAN MICHAEL HOLLAND WILL LEAVE THE INVESTMENTBANKING AND SECURITIESBROKERAGE FIRM AT YEAR END TO FORM HIS OWN ASSETMANAGEMENT FIRM THE COMPANY SAID A SUCCESSOR HASN'T BEEN NAMED BEFORE JOINING OPPENHEIMER MR HOLLAND WAS CHAIRMAN OF SALOMON BROTHERS ASSET MANAGEMENT A SALOMON BROTHERS INC UNIT 9311050093 931105 WHO'S NEWS MISSION WEST PROPERTIES MISSION WEST PROPERTIES SAN DIEGO JOSEPH LABRECHE RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER J GREGORY KASUN WHO HAD BEEN CHIEF FINANCIAL OFFICER SUCCEEDED HIM IN A COMPANY STATEMENT MR LABRECHE 48 SAID HE RESIGNED BECAUSE OF PHILOSOPHICAL DIFFERENCES WITH A MAJORITY OF THE BOARD IN AN INTERVIEW MR LABRECHE WOULDN'T ELABORATE TRITON GROUP INC OF LA JOLLA CALIF OWNS 53 OF THE COMPANY MR KASUN 38 ALSO SUCCEEDS MR LABRECHE AS A DIRECTOR ON THE SEVENMEMBER BOARD MISSION WEST A REALESTATE DEVELOPMENT COMPANY ENGAGED IN DEVELOPING OWNING AND OPERATING RENTAL PROPERTY HAS SUSTAINED A SERIES OF LOSSES AMID SOUTHERN CALIFORNIA'S REALESTATE WOES 9311050092 931105 SOME GM WORKERS GO TO GREAT LENGTHS TO HOLD STEADY JOBS AUTOMAKING GYPSIES BOUNCE FROM FACTORY TO FACTORY MIKE RAPER WEEKEND DAD BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT WHEN MIKE RAPER JOINED GENERAL MOTORS CORP IN 1979 HE FIGURED HE HAD A STEADY JOB HERE FOR THE REST OF HIS LIFE HE FIGURED WRONG INSTEAD MR RAPER 38 YEARS OLD HAS SPENT THE LAST FEW YEARS AT GM BOUNCING FROM PLANT TO PLANT ENDURING A PROLONGED LAYOFF LIVING IN AN UNHEATED VAN AND SEEING HIS WIFE AND TWO CHILDREN ONLY ON WEEKENDS HE ISN'T ALONE GM'S NEVERENDING CUTBACKS IN STAFF AND PRODUCTION DURING THE PAST DECADE HAVE CREATED A CLASS OF MIGRANT AUTO WORKERS WHO MOVE FROM ONE PLANT TO ANOTHER THIS IS COUNTER TO THE WIDELY HELD IMPRESSION THAT LAIDOFF GM WORKERS TURN INTO WELLPAID COUCH POTATOES THANKS TO THE GENEROUS TERMS OF THEIR UNION CONTRACT WHILE THERE ARE SOME OF THOSE THE TRUTH IS THAT MANY LAID OFF WORKERS WITH LOW SENIORITY SUCH AS MR RAPER SIMPLY RETAIN THEIR RIGHTS TO BE RECALLED TO A JOB EVEN AFTER THEIR BENEFITS EXPIRE AND THE NEW GM PACT WITH THE UNITED AUTO WORKERS RAISES THE INCENTIVES TO TAKE JOBS IN DIFFERENT CITIES THERE ARE SOME EXCEPTIONS BUT MANY WORKERS STILL FACE THE PROSPECT OF BEING SHIPPED OFF WHILE GM MANAGERS ROUTINELY FACE CORPORATE TRANSFERS FROM DETROIT TO TOKYO TO RUESSELSHEIM GERMANY FACTORY WORKERS HAVE A DIFFERENT CULTURE MOST TOOK GM JOBS AS A WAY TO BUILD LIVES CLOSE TO THEIR HOMETOWNS BUT IN THE NEXT THREE YEARS THE RANKS OF GM GYPSIES PROMISE TO SWELL AS THE COMPANY TRIES TO MAKE THE BEST OF THE NEW LABOR CONTRACT THAT OFFERS FEW WAYS TO CUT COSTS OTHER THAN PUSHING WORKERS FROM OVERSTAFFED PLANTS TO SHORTHANDED ONES AS THE AUTO MAKER ATTEMPTS TO TRIM SOME 65000 HOURLY WORKERS BY 1996 IT WILL HAVE TO MOVE THOUSANDS OF THE REMAINING WORKERS TO KEEP ITS PLANTS OPERATING GM WHICH UNDER THE NEW CONTRACT WILL GIVE WORKERS UP TO 20000 IN RELOCATION COSTS AND BONUSES DECLINES TO COMMENT ON THE SITUATION SOME GYPSIES ARE HAPPY CAMPERS WHEN GM CLOSED ITS ASSEMBLY PLANTS IN VAN NUYS CALIF LAST YEAR SOME WORKERS RELISHED THE CHANCE TO LEAVE THE CRIME AND HIGH HOME PRICES OF LOS ANGELES STILL MANY OFTEN GET REPUTATIONS AS MALCONTENTS AND OTHERS SPEND THEIR CAREERS TRYING TO RETURN HOME RICK THOMPSON FOR INSTANCE TRANSFERRED TO A GM PLANT IN SHREVEPORT LA IN 1984 AFTER A PLANT IN SAGINAW MICH WAS CLOSED FOUR YEARS AGO MR THOMPSON ACCEPTED A JOB AT GM'S FOUNDRY IN DEFIANCE OHIO BECAUSE IT WAS CLOSER TO HOME ALTHOUGH HE IS JUST 37 YEARS OLD MR THOMPSON IS MARKING THE TIME UNTIL HE CAN RETIRE AND MOVE BACK TO MICHIGAN HE HAS EIGHT YEARS TO GO THESE ARE THE NEW NOMADS ROAMING LIKE DEPRESSIONERA HOBOS IN SEARCH OF STEADY WORK THESE PEOPLE ARE PART OF A NEW INDUSTRIAL MIGRANT WORK FORCE SAYS RUSS ECKEL AN INDUSTRIAL PSYCHOLOGIST WHO STUDIED THE PHENOMENON OF TRANSFERS IN THE AUTO INDUSTRY DIVORCE RATES AND STRESS RUN HIGH AMONG THESE WORKERS WHO OFTEN EARN ENOUGH IN SALARY AND BENEFITS THAT THEY ARE LOATH TO LEAVE THE COMPANY BUT AREN'T MAKING ENOUGH TO TAKE THEIR SPOUSES AND CHILDREN ALONG AS THEY MOVE FROM ONE FACTORY TO ANOTHER THIS IS WHAT HAPPENED TO MIKE RAPER WHEN GM OFFERED HIM A JOB IN TARRYTOWN NY IN 1990 HE KNEW THAT HE COULDN'T AFFORD TO TAKE HIS FAMILY TO NEW YORK WHERE THE COST OF LIVING IS HIGHER THAN IN HIS MICETOWN BUT HE FELT HE HAD NO CHOICE BUT TO TAKE THE JOB HE HAD BEEN LAID OFF 2 1/2 YEARS EARLIER AND HAD BEEN RELYING ON OCCASIONAL ODD JOBS AND GOVERNMENT ASSISTANCE TO SUPPORT HIS FAMILY AFTER HIS GM BENEFITS HAD RUN OUT I WAS DESPERATE HE SAYS I DIDN'T LIKE BEING ON FOOD STAMPS AND JUST BARELY MAKING ENDS MEET SO MR RAPER LEFT HIS FAMILY IN DETROIT AND DROVE OUT TO TARRYTOWN ABOUT 20 MILES NORTH OF NEW YORK CITY AT FIRST MR RAPER SHARED A HOUSE WITH FOUR OTHER WORKERS FROM MICHIGAN THEN HE SHARED AN APARTMENT WITH HIS FOREMAN BUT WHEN THE PLANT STOPPED WORKING OVERTIME LATER IN 1990 MR RAPER WHO EARNS ABOUT 37000 A YEAR COULDN'T AFFORD TO PAY HIS SHARE OF MONTHLY RENT NEAR TARRYTOWN WHILE STILL MAKING PAYMENTS ON HIS HOUSE IN MICHIGAN HE BEGAN SPENDING NIGHTS IN THE PARKING LOT OF THE TARRYTOWN PLANT CURLED UP IN THE BACK SEAT OF HIS 1983 CHEVROLET CAPRICE HE DIDN'T HAVE A STOVE AND HE SAYS OTHER WORKERS LAUGHED AT ME WHEN THEY SAW ME EATING FOOD STRAIGHT OUT OF A CAN BY NOVEMBER IT WAS COLD AND MR RAPER KEPT WAKING UP DURING THE NIGHT BECAUSE OF LEG CRAMPS HE BOUGHT A 1985 CHEVROLET VAN HE ALSO BOUGHT A USED CAMP STOVE FOR A WHILE GM KICKED MR RAPER AND SOME OTHER GYPSIES OUT OF THE PARKING LOT CITING INSURANCE RISKS AND MR RAPER SPENT HIS NIGHTS PARKED ON A SIDE STREET OF THE INDUSTRIAL TOWN ALONG THE HUDSON RIVER EVERY WEEKEND MR RAPER WOULD DRIVE HOME TO SEE HIS FAMILY IN WESTLAND MICH A BLUECOLLAR SUBURB A FEW MILES WEST OF DETROIT THE DRIVE LASTED 13 HOURS EACH WAY AND CONSUMED 130 IN GASOLINE PER 1300MILE ROUND TRIP ABOUT A QUARTER OF MR RAPER'S TAKEHOME PAY AS A RESULT HIS FAMILY WAS STILL JUST GETTING BY AT TIMES MR RAPER'S WIFE LINDA WOULD URGE HIM TO QUIT GM AND LOOK FOR ANY SORT OF EMPLOYMENT IN THE DETROIT AREA BUT MR RAPER COULDN'T FORGET WHAT IT WAS LIKE TO BE OUT OF WORK SO HE STUCK IT OUT BACK IN DETROIT MR RAPER'S WIFE ASKED MEMBERS OF THEIR CHURCH TO PRAY THAT HER HUSBAND WOULD BE LAID OFF BECAUSE OF GM'S UNION CONTRACT SIGNED IN 1990 MR RAPER COULD RETURN TO MICHIGAN AND COLLECT VIRTUALLY FULL PAY IF HE WAS IDLED WE'D BE SAVING MONEY IF HE WAS LAID OFF SHE SAYS IT'S COSTING US A SMALL FORTUNE THIS WAY THE TARRYTOWN PLANT ASSEMBLES GM'S LONGSNOUTED FRONTWHEELDRIVE MINIVAN MRS RAPER SAYS THEIR TWO CHILDREN WOULD GET UPSET EVERY TIME THEY SAW ONE OF THOSE UGLY VANS DRIVING DOWN THE ROAD BECAUSE IT WAS KEEPING MR RAPER AWAY FROM HIS FAMILY IN THE SUMMER OF 1992 LINDA RAPER'S PRAYERS WERE ANSWERED MR RAPER WAS LAID OFF AND RETURNED TO MICHIGAN AT FIRST I FELT LIKE A STRANGER WITH MY KIDS HE SAYS THEN IN FEBRUARY HE RECEIVED A LETTER CALLING HIM BACK TO WORK IN TARRYTOWN THE WHOLE BUNCH OF US JUST BROKE OUT IN TEARS RECALLS MRS RAPER IN OCTOBER WHEN GM OFFERED HIM A JOB IN THREE RIVERS MICH MR RAPER DIDN'T HESITATE EVEN THOUGH IT WAS STILL 150 MILES AWAY FROM HIS FAMILY AND EVEN THOUGH HE KNEW THAT THE PLANT IS IN THE PROCESS OF BEING SOLD IN THE PAST GM WORKERS AT SOLD PLANTS HAVE HAD THE OPTION OF STAYING IN THE GM SYSTEM AND THE RAPERS ARE HOPING HE WILL BE OFFERED A JOB SOMEWHERE IN THE DETROIT AREA HOW LONG WILL THAT TAKE I HAVE NO IDEA SAYS MRS RAPER I'VE GOTTEN TO THE POINT WHERE I DON'T EVEN GET MY HOPES UP 9311050091 931105 BUSINESS BRIEF AMERICAN SHIP BUILDING DESPITE OFFER BY STEINBRENNER FILES FOR CHAPTER 11 AMERICAN SHIP BUILDING CO DESPITE A LASTDITCH OFFER OF A CASH INFUSION FROM GEORGE STEINBRENNER FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION THE FILING IN US BANKRUPTCY COURT IN TAMPA FLA FOLLOWS FOUR YEARS OF LOSSES AND A CONTINUING DISPUTE BETWEEN THE SHIPBUILDER AND THE US GOVERNMENT OVER CONTRACTS FOR OIL TANKERS THE FINAL BLOW CAME RECENTLY WHEN THE US NAVY SAID IT WOULD CANCEL A 176 MILLION CONTRACT FOR COMPLETION OF THE TWO GIANT OIL TANKERS IN ADDITION THE NAVY SAID IT MAY CANCEL A 58 MILLION CONTRACT ON A SURVEILLANCE VESSEL IF IT DOESN'T CLEAR UP PROBLEMS ON THE VESSEL'S CONSTRUCTION IN A STATEMENT MR STEINBRENNER WHO OWNS THE NEW YORK YANKEES BASEBALL TEAM AND IS THE LARGEST SHAREHOLDER IN AMERICAN SHIP BUILDING SAID HE OFFERED TO MAKE A CASH AND CREDIT INFUSION OF 11 MILLION TO ENSURE DELIVERY OF THE NAVY VESSELS BUT THAT WASN'T ACCEPTABLE TO THE NAVY IT IS BECOMING MORE AND MORE EVIDENT THROUGH REPORTS WE ARE GETTING THAT THE NAVY HAS NO USE FOR THESE VESSELS HE SAID NAVY OFFICIALS COULDN'T BE REACHED TO COMMENT THE FILING LISTS TOTAL ASSETS AND TOTAL LIABILITIES AS AN UNDETERMINED AMOUNT AT A NEWS CONFERENCE IN TAMPA BANKRUPTCY ATTORNEYS SAID THE COMPANY OWES ABOUT 30 MILLION FOR PORT BONDS AND TO VENDORS AND BANKERS FILINGS FOR AMERICAN SHIP BUILDING AND ITS SUBSIDIARY TAMPA SHIPYARDS INC LIST THE LARGEST UNSECURED CLAIMS FOR A TOTAL OF ABOUT 48 MILLION AMERICAN SHIP BUILDING HAD BEEN TRYING TO AVOID A CHAPTER 11 FILING FOR MORE THAN A YEAR AS COMMERCIAL CONTRACTS DRIED UP AND MILITARY JOBS BECAME SCARCE IN 1992 AMERICAN SHIP BUILDING POSTED A LOSS OF 12 MILLION ON REVENUE OF 914 MILLION THE COMPANY PINNED MUCH OF ITS HOPES FOR THE FUTURE ON THE NAVY CONTRACT FOR TWO TANKERS A SHIPYARD IN PHILADELPHIA HAD BEGUN WORK ON THE TANKERS IN THE LATE 1980S BUT RAN INTO FINANCIAL PROBLEMS AMERICAN SHIP WON THE CONTRACT TO COMPLETE THE TANKERS BUT THE COMPANY AND THE NAVY FEUDED OVER THE VESSELS IN OCTOBER 1992 CONGRESS ALLOCATED 58 MILLION TO AID THE COMPANY 45 MILLLION OF WHICH INCREASED THE SIZE OF THE TANKER CONTRACT ACCORDING TO A NAVY SPOKESMAN BUT LAST AUGUST THE NAVY NOTIFIED THE COMPANY THAT IT PLANNED TO TERMINATE THE CONTRACT LAST WEEK PENTAGON OFFICIALS SAID THE CONTRACT WAS DEAD AND THE SHIPS WOULD BE MOTHBALLED OR SOLD TO A FOREIGN COUNTRY FOUNDED IN 1899 BY MR STEINBRENNER'S GREATGREATGRANDFATHER AMERICAN SHIP BUILDING IS ONE OF THE OLDEST COMPANIES LISTED ON THE NEW YORK STOCK EXCHANGE AT ITS PEAK IN THE 1940S THE COMPANY EMPLOYED SOME 20000 PEOPLE MORE RECENTLY THE COMPANY EMPLOYED ABOUT 1000 PEOPLE 9311050090 931105 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 ARMCO INC 125 MILLION OF SENIOR NOTES DUE NOV 1 2000 PRICED AT PAR TO YIELD 9375 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS ARE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CENTENNIAL CELLULAR CORP 200 MILLION OF SENIOR NOTES DUE NOV 1 2001 PRICED AS 8875S AT 99307 TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN BANK SYSTEM 835 MILLION OF MEDIUMTERM NOTES DUE NOV 10 1996 PRICED AT PAR TO YIELD 4575 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 11 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN BANK SYSTEM 80 MILLION OF MEDIUMTERM NOTES DUE NOV 10 1998 PRICED AT PAR TO YIELD 524 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 23 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF DEBENTURES DUE NOV 10 2003 PRICED AT PAR TO YIELD 635 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES WHICH ARE NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 69 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC PHILLIPSVAN HEUSEN CORP 100 MILLION OF DEBENTURES DUE NOV 15 2023 PRICED AS 775S AT 99423 TO YIELD 78 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 138 BASIS POINTS ABOVE TREASURYS RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO RELIANCE GROUP HOLDINGS INC 650 MILLION TWOTRANCHE OFFERING OF DEBT PRICED THROUGH DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE FIRST TRANCHE 400 MILLION OF SENIOR NOTES DUE 2000 WAS PRICED AT PAR TO YIELD 9 THE DEBT IS NONCALLABLE THE SECOND TRANCHE 250 MILLION OF SENIOR SUBORDINATED DEBENTURES DUE 2003 WAS PRICED AT PAR TO YIELD 975 THE DEBT IS CALLABLE AFTER FIVE YEARS BROADBAND TECHNOLOGIES INC 19 MILLION COMMON SHARES PRICED AT 40 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO ENRON CAPITAL LLC 200 MILLION OF CUMULATIVE GUARANTEED MONTHLY INCOME PREFERRED SHARES PRICED WITH A 8 DIVIDEND YIELD AT 25 APIECE THROUGH UNDERWRITERS GOLDMAN SACHS & CO THE SHARES CALLABLE IN FIVE YEARS ARE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY 1298 MILLION SERIES K REVENUE BONDS PRICED BY A GOLDMAN SACHS GROUP YIELDS FOR THE BOSTON COLLEGE ISSUE RANGE FROM 27 IN 1994 TO 568 IN 2023 MOODY'S HAS RATED THE BONDS SINGLEA1 AND S&P HAS ASSIGNED A SINGLEAPLUS RATING SALEM COUNTY NJ POLLUTION CONTROL FINANCING AUTHORITY 145 MILLION 1993 SERIES C POLLUTIONCONTROL REVENUE REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 566 THE BONDS ARE DUE NOV 1 2033 THEY HAVE A 555 COUPON AND ARE PRICED AT 9975 TO YIELD 556 THIS ISSUE IS INSURED BY THE MUNICIPAL BONDS INVESTORS ASSURANCE CORP AND CARRIES TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY CITIBANK THE OFFERING SERIES 1646 IS BACKED BY THE AGENCY'S 30YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 357 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1993240 IS BACKED BY THE AGENCY'S 20YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 237 MONTHS FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993241 IS BACKED BY THE AGENCY'S PRINCIPAL ONLY STRIPS TRUST 240 WHICH IS BACKED IN TURN BY 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE MATURITY OF 355 MONTHS UNITED COMPANIES FUNDING CORP 155 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES PRICED IN FOUR PARTS BY PRUDENTIAL SECURITIES INC THE SOLE UNDERWRITER ALL CLASSES IN THE ISSUE UCFC 1993D WERE RATED TRIPLEA BASED ON AN INSURANCE GUARANTEE PROVIDED BY THE FINANCIAL GUARANTY INSURANCE CO THE 11705 MILLION IN CLASS A1 FIXEDRATE CERTIFICATES WAS PRICED AS 545S AT 999375 TO YIELD 5484 A 100BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF THREE YEARS THE 716 MILLION IN CLASS A2 CERTIFICATES WAS PRICED AS 6725S AT 9990625 TO YIELD 681 A 110BASISPOINT SPREAD ABOVE THE 12YEAR POINT ON THE TREASURY YIELD CURVE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 1205 YEARS THE 15 MILLION IN CLASS A3 CERTIFICATES WAS PRICED AS 5475S AT 9990625 TO YIELD 5515 A 103BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED THREEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 304 YEARS THE FIRST THREE CLASSES WERE PRICED AT A CONDITIONAL PREPAYMENT RATE OF 22 THE 15 MILLION IN CLASS A4 CERTIFICATES WAS PRICED AT PAR TO FLOAT 40 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 12 CAP THE CERTIFICATES WITH A 428YEAR AVERAGE LIFE WERE PRICED AT A 20 CONDITIONAL PREPAYMENT RATE ALBERTA CANADIAN PROVINCE 275 MILLION OF 5 EUROBONDS DUE DEC 22 1997 AT ISSUE PRICE 1014 VIA SWISS BANK CORP REOFFERED AT PAR TO YIELD 5 A MARGIN OF 215 BASIS POINTS OVER INTERPOLATED CURVE OF WHENISSUED THREEYEAR US TREASURY AND FIVEYEAR TREASURY OR 26 BASIS POINTS OVER AUGUST 1996 TREASURY AND FIVEYEAR TREASURY FEES 1625 DEPFA FINANCE NV AMSTERDAM GERMAN PARENT 200 MILLION CANADIAN DOLLARS OF 725 EUROBONDS DUE DEC 1 2008 AT ISSUE PRICE 101015 VIA GOLDMAN SACHS INTERNATIONAL LTD REOFFERED AT 9889 TO YIELD 3375 A MARGIN OF 36 BASIS POINTS OVER CANADIAN GOVERNMENT BOND OF 2003 GUARANTOR DEUTSCHE PFANDBRIEF UND HYPOTHEKENBANK AG FEES 25 DEUTSCHE PFANDBRIEF & HYPOTHEKENBANK AG GERMANY 150 MILLION MARKS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE NOV 24 2003 AT ISSUE PRICE 101925 VIA MORGAN STANLEY GMBH REOFFERED AT 9975 ANNUAL COUPON 7 FOR FIRST TWO YEARS THEREAFTER SEMIANNUAL COUPON OF 7 LESS TWICE SIXMONTH MARK LONDON INTERBANK OFFERED RATE INVESTOR HAS OPTION TO BUY MORE OF SAME BONDS ON COUPON DATES FOR FIRST TWO YEARS IN LIEU OF RECEIVING INTEREST PAYMENT FEES 25 MITSUBISHI CORP FINANCE PLC JAPANESE PARENT 10 BILLION YEN OF 3 EUROBONDS DUE NOV 21 1997 AT ISSUE AND REOFFER PRICE 10025 VIA FUJI INTERNATIONAL PLC BONDS YIELD 293 KEEPWELL AGREEMENT WITH MITSUBISHI CORP LAUNCHED OFF EURO MEDIUMTERMNOTE PROGRAM FEES 025 KREDITANSTALT FUER WIEDERAUFBAU GERMAN AGENCY 15 BILLION PORTUGUESE ESCUDOS OF 875 EUROBONDS DUE DEC 15 1998 AT ISSUE PRICE 1005 VIA DEUTSCHE BANK DE INVESTIMENTO SA BONDS YIELD 9007 AFTER FEES A SPREAD OF TWO BASIS POINTS BELOW COMPARABLE PORTUGUESE GOVERNMENT NOTE FEES 15 9311050089 931105 WORLD MARKETS TOKYO STOCKS EXTEND EIGHTSESSION LOSS TO 84 AS REASONS ABOUND TO SIGNAL MUCH STEEPER FALL BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AS TOKYO STOCKS PLUNGE TO THEIR LOWEST POINT IN OVER SIX MONTHS IT'S WHITEKNUCKLE TIME FOR INVESTORS IN JAPAN THE NIKKEI STOCK AVERAGE HAS PLUMMETED 1704 POINTS OR 84 DURING THE PAST EIGHT TRADING SESSIONS TO ITS LOWEST LEVEL SINCE MARCH 31 AND DESPITE THE RAPID DECLINE MANY TRADERS SAY JAPANESE STOCKS HAVE STILL FURTHER TO FALL THERE ARE PLENTY OF REASONS FOR THE GLUM VIEW WHILE MARKETS ARE BOOMING IN ASIA AND THE US JAPAN IS BEING HAMMERED BY THE LATEST ROUND OF GRIM EARNINGS REPORTS FROM COMPANIES WRACKED BY RECESSION ARBITRAGE PLAYERS ALSO ARE DUMPING BASKETS OF STOCKS AS THEY MOVE OUT OF A KEY INDEX WHILE A WEAKER YEN APPARENTLY IS ENCOURAGING SOME FOREIGN FUND MANAGERS TO TAKE PROFITS ON EARLIER CURRENCY GAINS FINALLY THE JAPANESE GOVERNMENT LONG A KEY PILLAR OF THE TOKYO MARKET IS LOW ON STOCKPURCHASING FUNDS THE NIKKEI WAS SHARPLY LOWER FRIDAY AT 1860546 DOWN 34433 OR 18 AT THE CLOSE OF THE MORNING SESSION AN ESTIMATED 260 MILLION SHARES CHANGED HANDS IN THE MORNING SESSION WHICH WAS MORE THAN IN RECENT TRADING TRADERS SAID THE MARKET WAS OVERWHELMED BY ARBITRAGE SELLING FROM FOREIGN HOUSES PLUS A FLIGHT OF JAPANESE INVESTORS WHO HAD EARLIER BOUGHT STOCKS ON CREDIT SHIGERU AKIBA HEAD OF YEN EQUITY SALES AT UBS SECURITIES SAID JAPANESE INSTITUTIONAL STOCKHOLDERS ARE GIRDING THEMSELVES FOR FURTHER DECLINES THE NIKKEI'S NEAREST TECHNICAL SUPPORT LEVEL HE SAID IS ABOUT 18700 OTHERS SAID 18000 LOOKS LIKE A FIRMER SUPPORT THE CLOSELY WATCHED NIKKEI AVERAGE IS ITSELF A PROBLEM THE 225STOCK INDEX PROBABLY WILL BE REPLACED SOON BY A 300STOCK MEASURE THAT DOESN'T INCLUDE MANY OF THE COMPANIES IN THE NIKKEI THE NEW BAROMETER WILL INCLUDE MANY SERVICE AND FINANCIAL COMPANIES WITH THE AIM OF MAKING THE 300 INDEX MORE REPRESENTATIVE OF THE JAPANESE MARKET BIG STOCKFUTURES ARBITRAGE PLAYERS ARE DUMPING STOCKS THAT WON'T BE IN THE NEW AVERAGE ABOUT 70 STOCKS THAT TOGETHER HAVE LOST MORE THAN 13 OF THEIR VALUE IN THE PAST FEW WEEKS THAT LOSS IS DRIVING THE NIKKEI DOWN AND WITH IT MARKET SENTIMENT IT'S HARD TO FIND ANY SUPPORT FOR THE NIKKEI WITH THE ARBITRAGERS GETTING OUT SAID HIROYUKI FUKUSHIMA EQUITY DEPARTMENT MANAGER AT NIKKO SECURITIES CO THE BROAD MARKET HE SAID PROBABLY WILL FALL AN ADDITIONAL 1 OR 2 BEFORE LEVELING ONE REASON FOR THE BEARISHNESS IS THAT RECESSIONBATTERED JAPANESE COMPANIES RANGING FROM AUTO TO ELECTRONICS MAKERS ARE ALMOST DAILY REPORTING POOR EARNINGS FOR THE SIX MONTHS ENDED SEPT 30 MARKET SENTIMENT ALREADY WEAKENED BY THE DISASTROUS EFFECTS OF THE INITIAL PUBLIC OFFERING OF GIANT EAST JAPAN RAILWAY ALSO WAS HURT BY MONDAY'S NEWS OF THE BIGGEST BANKRUPTCY IN POSTWAR JAPAN THE 590 BILLIONYEN 548 BILLION COLLAPSE OF CLOSELY HELD MURAMOTO CONSTRUCTION US FUND MANAGERS WHO TRADE THE MARKET ON DOLLARBASED RETURNS ALSO MAY BE TEMPTED TO CASH OUT BY A LONGTERM POSITIVE FOR JAPANESE COMPANIES THE YEN'S RECENT WEAKENING WHILE GOOD NEWS FOR JAPANESE EXPORTERS AS IT MAKES THEIR PRODUCTS CHEAPER OVERSEAS THE WEAKER YEN ALSO MEANS DOLLARBASED INVESTORS A MAJOR SUPPORT FOR THE MARKET ARE TEMPTED TO TAKE PROFITS AT OTHER TIMES WHEN THE STOCK MARKET HAS TANKED IN THE PAST YEAR GOVERNMENT FUNDS HAVE SUPPORTED SHARE PRICES BUT MANAGERS AT JAPANESE TRUST BANKS SAID THE GOVERNMENT NOW IS LOW ON SPECIFIED INVESTMENT FUNDS AND WOULD NEED TO ENACT SPECIAL LEGISLATION FOR NEW INVESTMENT VEHICLES THERE IS NO PRESSING NEED FOR THE MONEY NOW BECAUSE SHAREPRICE VALUATIONS ARE ONLY CRITICAL FOR MOST JAPANESE FINANCIAL INSTITUTIONS WHEN THE BOOKS CLOSE AT THE END OF THE FISCAL FIRST HALF SEPT 30 AND YEAR END MARCH 31 SOME ANALYSTS BELIEVE THAT THE GOVERNMENT WHICH HAS INVESTED AN ESTIMATED 3 TRILLION YEN IN THE STOCK MARKET OVER THE PAST YEAR MAY BE LEERY OF INVESTING MUCH MORE IN THE MARKET LONDON SHARES FELL BROADLY AS UTILITIES AND FOOD RETAILERS WERE DUMPED AMID FEARS ABOUT THEIR DECLINING PROFITABILITY FRANKFURT STOCKS SLUMPED AS HOPES WANED FOR ANY POSITIVE CORPORATE NEWS OR FOR A FURTHER GERMAN INTERESTRATE EASING UNTIL EARLY DECEMBER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11162 DOWN 141 REFLECTING LOWER MARKETS IN ALL REGIONS PRECIOUSMETALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14157 UP 123 OR 09 WITH HECLA MINING OF THE US POSTING AN 82 GAIN IN ITS LOCAL CURRENCY SAVINGS AND LOAN STOCKS TRAILED AT 9850 DOWN 547 OR 53 WITH GREAT WESTERN FINANCIAL OF THE US SLIDING 88 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 133 POINTS TO 31490 THE FT 30STOCK INDEX FELL 77 POINTS TO 23760 VOLUME WAS 7481 MILLION SHARES COMPARED WITH 6142 MILLION SHARES A DAY EARLIER THE 100STOCK INDEX ALSO WHACKED BY WALL STREET'S SLUMP THE PREVIOUS DAY WAS DOWN ALMOST 30 POINTS BUT RECOVERED SOME OF THE LOSSES SELLING OF FOOD RETAILERS AND STORE OPERATORS CONTINUED SUSTAINED BY ANXIETY THAT DISCOUNTING WILL HURT PROFIT MARGINS SENTIMENT ALSO WAS BUFFETED BY TELEPHONE COMPETITION FOR DISCOUNTED CALLS AND BY CONCERNS ABOUT REGULATORY PRESSURE ON UTILITIES' PERFORMANCE IN FRANKFURT THE DAX 30STOCK INDEX DROPPED 2175 POINTS OR 1 TO 206261 THE GERMAN CENTRAL BANK MAINTAINED ITS INTEREST RATES WHICH DIDN'T SURPRISE THE STOCK MARKET WHERE PRICES FELL BECAUSE OF PROFITTAKING FOLLOWING TUESDAY'S SHARP GAINS AND SOME PESSIMISM CAUSED BY THE GERMAN CHAMBERS OF COMMERCE AND INDUSTRY PREDICTION OF A 05 CONTRACTION IN THE WESTERN GERMAN ECONOMY NEXT YEAR WHILE GERMAN ECONOMIC RESEARCH INSTITUTES HAVE ESTIMATED 15 GROWTH IN PARIS STOCKS DIVED 16 IN REACTION TO WALL STREET'S SLUMP THE PREVIOUS DAY AND TO A LACK OF SIGNALS OF FURTHER FRENCH RATE CUTS THAT PROMPTED PROFITTAKING IN MILAN PRICES FELL ON NEW ALLEGATIONS OF SECRET ITALIAN GOVERNMENT PAYOFFS AND COVERT OPERATIONS ADDING TO MARKET DEMANDS CAUSED BY A LARGE NUMBER OF STOCK RIGHTS ISSUES UNDER WAY IN MADRID SHARES FELL DRAGGED DOWN PARTLY BY PROFITTAKING IN ZURICH STOCKS PLUNGED 16 IN AN EXPECTED CORRECTION AFTER A RALLY WHILE PROFITTAKING ALSO WAS ENCOURAGED BY THE WALL STREET AND FRANKFURT DOWNTURNS 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 9311050088 931105 BP REPORTS NET CLIMBED SHARPLY IN 3RD QUARTER UK OIL CONCERN'S RESULTS REFLECT SUCCESS IN EFFORT TO REDUCE ITS COSTS BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL EARNINGS AT BRITISH PETROLEUM CO CONTINUED THEIR SEEMINGLY INEXORABLE RISE IN THE THIRD QUARTER REFLECTING IN GREAT PART THE OIL COMPANY'S SUCCESSFUL DRIVE TO CUT COSTS THE COMPANY WHICH IS BASED IN LONDON REPORTED NET INCOME AFTER EXCEPTIONAL ITEMS AND ON A REPLACEMENTCOST BASIS OF 332 MILLION 4922 MILLION THIS WAS UP 27 FROM 261 MILLION IN THE PRECEDING PERIOD AND UP 93 FROM THE 172 MILLION EARNED IN THE 1992 THIRD QUARTER THE PACE OF BP'S CONTINUING PROFIT RECOVERY AFTER A STUNNING 812 MILLION LOSS IN THE SECOND QUARTER OF 1992 HAS CONFOUNDED EVEN OPTIMISTIC ANALYSTS WHOSE PROJECTIONS HAD RANGED AS HIGH AS 290 MILLION FOR THE LATEST QUARTER EVEN AFTER ALLOWING FOR THE BENEFITS ACCRUING TO BP FROM CHANGES IN THE BRITISH NORTH SEA TAX REGIME I'M TERRIBLY IMPRESSED SAI JEREMY HUDSON AN OIL ANALYST AT LEHMAN BROTHERS IN LONDON BP'S SHARES REFLECTED THIS ASSESSMENT ENDING THE TRADING DAY ON THE LONDON EXCHANGE AT 356 1/2 PENCE A SHARE UP 9 1/2 MR HUDSON AND OTHER ANALYSTS SAID THEY WERE IN THE PROCESS OF REVISING THEIR ASSESSMENTS OF BP BASED ON ITS FASTERTHANEXPECTED FINANCIAL RECOVERY SINCE THE SECOND QUARTER OF 1992 WHEN THE COMPANY DECIDED TO BITE THE BULLET AND CUTS ITS COSTS SHARPLY IN THAT QUARTER THE COMPANY CHARGED 919 MILLION TO COVER THE COSTS OF LAYOFFS AND ASSET WRITEOFFS IT ALSO BEGAN A DIVESTMENT PROGRAM AND SET A TARGET OF REACHING SUSTAINABLE PROFITS OF 2 BILLION ANNUALLY BY 1995 BP'S CHIEF EXECUTIVE AND DEPUTY CHAIRMAN DAVID SIMON SAID THAT COSTS WERE REDUCED BY 330 MILLION BEFORE TAXES IN THE FIRST NINE MONTHS OF THIS YEAR AT THIS RATE BP COULD REDUCE COSTS BY THE INTENDED 650 MILLION WELL BEFORE THE TARGET DATE OF END 1994 DESPITE THE PROFIT RECOVERY BP ANNOUNCED A QUARTERLY DIVIDEND OF 21 PENCE PER SHARE THAT HAS BEEN UNCHANGED SINCE THE SECOND QUARTER OF 1992 WHEN THE COMPANY HALVED IT AS PART OF ITS CASHCONSERVATION MEASURES MR SIMON ACKNOWLEDGED THAT THIRDQUARTER PROFIT COULD BE SEEN TO HAVE REACHED LEVELS THAT WOULD TRANSLATE INTO THE TARGET LEVEL OF 2 BILLION ANNUALLY BUT ONE SWALLOW DOESN'T MAKE A SUMMER THE BP CHIEF EXECUTIVE REMARKED ADDING THAT THE DIVIDEND WOULD BE REVIEWED WHEN THIS LEVEL OF PROFITS PROVED SUSTAINABLE MEANWHILE HE CAUTIONED AGAINST USING THIRDQUARTER RESULTS TO EXTRAPOLATE FOURTHQUARTER FIGURES THE PRICE OF OIL CONTINUES TO BE IN THE DOLDRUMS AND COMPETITION IN THE MARKETPLACE IS INTENSE MOREOVER BP WILL FACE SEASONALLY HIGHER TAX PAYMENTS AND CAPITAL SPENDING IN THE FOURTH QUARTER BUT FURTHER DIVESTMENT PROCEEDS ALSO ARE EXPECTED MEANWHILE IMPROVED CASH FLOW AND DIVESTMENT PROCEEDS ENABLED BP TO REDUCE ITS BORROWING BY 1 BILLION TO 131 BILLION THIS HIGH LEVEL OF DEBT MORE THAN 90 IN DOLLARS MAKES SOME ANALYSTS APPREHENSIVE ABOUT BP IT HAS A LONG LONG STRUGGLE AHEAD OF IT SAID PHILIP MORGAN AN ANALYST AT PARIBAS IN LONDON NONETHELESS MR MORGAN SAID BP'S LATEST RESULTS WERE EXTREMELY GOOD AND PROFIT FROM REFINING AND MARKETING OPERATIONS ASTOUNDING 9311050087 931105 AT&T'S NEW UNIT TO SELL ITS PROFESSIONAL SERVICES NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO FIXED ITS OWN BACK OFFICE AND NOW IT WANTS TO FIX YOURS FOR A FEE OF COURSE ENCOURAGED BY SEVERAL PROJECTS IN WHICH IT SET UP INTERNAL NETWORKS OF COMPUTERS PHONE AND VIDEO SYSTEMS FOR SUCH CORPORATE CUSTOMERS AS DELTA AIRLINES AT&T SAID IT WOULD TURN PART OF ITS 8000MEMBER INFORMATION MANAGEMENT SERVICES DIVISION INTO A NEW BUSINESS THE NEW PROFESSIONAL SERVICES DIVISION WILL SELL SYSTEMS INTEGRATION CONSULTING AND FACILITIES MANAGEMENT SERVICES TO OUTSIDE CLIENTS WILLIAM F OSL JR A VICE PRESIDENT WHO HAD OVERSEEN THE INFORMATION MANAGEMENT DIVISION WILL HEAD THE NEW DIVISION AT&T SAID THE BUSINESS WILL WORK WITH OTHER AT&T UNITS THAT SELL EQUIPMENT TO OUTSIDE CUSTOMERS AND WILL HAVE 200 WORKERS AND EVENTUALLY GROW TO ABOUT 1000 AT&T SAID RINO C BERGONZI A VICE PRESIDENT AND CHIEF INFORMATION OFFICER AT UNITED PARCEL SERVICE OF AMERICA INC WAS HIRED TO SUCCEED MR OSL ATOP THE EXISTING DIVISION 9311050086 931105 BUSINESS BRIEF WABAN INC PROFIT DECLINE TO BE POSTED HOMEBASE RESULTS ARE CITED WABAN INC REPORTED A 55 DECLINE IN SAMESTORE SALES FOR OCTOBER AND SAID THIRDQUARTER NET INCOME WOULD BE BELOW YEAREARLIER RESULTS THE NATICK MASSBASED OPERATOR OF HOMEBASE HOMEIMPROVEMENT CENTERS AND BJ'S WHOLESALE CLUB STORES SAID IT EXPECTS TO REPORT EARNINGS OF 22 CENTS TO 25 CENTS A SHARE ON A FULLY DILUTED BASIS COMPARED WITH A YEAREARLIER FULLY DILUTED 33 CENTS A SHARE IN THE YEAREARLIER THIRD QUARTER WABAN HAD NET INCOME OF 112 MILLION OR 34 CENTS A SHARE ON A PRIMARY BASIS IT HAD SALES OF 8206 MILLION THE COMPANY SAID THE DECLINE IS LARGELY ATTRIBUTABLE TO ITS HOMEBASE UNIT WHERE OPERATING INCOME IS WELL BELOW LAST YEAR'S LEVEL DUE TO HIGHER STORE OPERATING EXPENSES AND LOWER MARGINS THE COMPANY REPORTED TOTAL SALES FOR OCTOBER OF 2778 MILLION 87 HIGHER THAN A YEAREARLIER 2556 MILLION IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE WABAN FELL 1125 TO 1275 A SHARE 9311050085 931105 REVIEW & OUTLOOK EDITORIAL NAFTA COATTAILS IN THE ECHOLALIA OF THE PUNDITS THIS WEEK NAFTA'S GOOSE MAY HAVE BEEN COOKED BY TUESDAY'S FALLOUT AFTER ALL WHAT CONGRESSMAN THEY REASON IS GOING TO BE WILLING TO THROW HIMSELF ON A GRENADE FOR A PRESIDENT WHO OBVIOUSLY HAS ZERO CLOUT WITH VOTERS THE POOR GUY WOULD BE A SITTING DUCK FOR THE FIRST CHALLENGER POCKETS JINGLING WITH AFLCIO CASH TO COME ALONG WE SUPPOSE ONLY IN THIS ERA OF ENDLESS POLITICAL SPIN CAN THERE BE A LOGICAL CONNECTION BETWEEN TUESDAY'S ELECTIONS WON IN THE MAIN BY NAFTA SUPPORTERS AND THE SPECTACLE OF DEMOCRATIC CONGRESSMEN QUAKING IN THEIR ORNATE CAPITOL HILL OFFICES IF THIS INSTANT DIZZY SPIN HAS SUPERFICIAL PLAUSIBILITY IT'S MAINLY BECAUSE OF LAST SUMMER'S BUDGET BATTLE BILL CLINTON BENT ARMS DISTRIBUTED GOODIES AND STILL BARELY MANAGED TO CRAM HIS AWFUL TAX HIKES DOWN THE THROAT OF CONGRESS THE GENERALIZED PANIC IS THAT THE SUBSTANCE IS IRRELEVANT NOW THE PRESIDENT'S COATTAILS APPEAR TO BE ON FIRE IF SO THE NAFTA EFFORT AND VOTE SHOULD BE MR CLINTON'S FIRE EXTINGUISHER FOR STARTERS THIS TIME THE PRESIDENT ISN'T ASKING FELLOW DEMOCRATS TO HOLD THEIR NOSES AND VOTE A BUDGET THAT EVERYBODY IN THE COUNTRY KNOWS IS ECONOMIC POISON MOST EVERYONE OUTSIDE DAVID BONIOR'S BRAIN KNOWS THE TRADE AGREEMENT IS GOOD FOR THE GENERAL ECONOMY BUT IN THE MEDIA AGE ANTINAFTA DEMOGOGUERY IS NO SMALL MATTER FURTHER TUESDAY'S RESULTS WERE ABOUT ECONOMIC GROWTH EVEN AS UNSATISFYING A REPUBLICAN AS RUDY GUILIANI MANAGED TO ASSOCIATE HIMSELF WITH THAT HOPE AND POSSIBILITY SOMEDAY IN NEW JERSEY FOLKS ASSOCIATED JIM FLORIO WITH HIS STAGNATING TAX HIKES THEN PULLED THE LEVER FOR CHRISTINE TODD WHITMAN WHO STOOD HER GROUND WITH SUBSTANCE AND DIGNITY AGAINST A FEROCIOUS CARVILLESQUE ASSAULT ON NAFTA MR CLINTON IS CHRISTINE WHITMAN VOTERS ARE SEEING A DEMOCRATIC PRESIDENT BRAVELY TAKING HIS NAFTA CASE TO THE HOSTILE AFLCIO CONVENTION ROUNDING UP REPUBLICAN SUPPORT FROM HENRY KISSINGER TO RONALD REAGAN BOB DOLE AND NEWT GINGRICH LAUNCHING HIS OWN FUSILLADE YESTERDAY AGAINST ROSS PEROT AND WE SUSPECT THEY'LL NOTICE THAT MR CLINTON FOR ONCE IS PUTTING HIS LEADERSHIP IN THE SERVICE OF SOMETHING MORE THAN JUST GREASING HIS RUSTING DEMOCRATIC VOTING BLOC NO DOUBT IT WILL STILL TAKE SOME ARMBENDING TO WIN ON NAFTA BUT OUR VIEW IS THAT MR CLINTON ULTIMATELY HAS TO WIN ON THE MERITS NOT ON PRESIDENTIAL PAYOLA FOR EVERY DAVID BONIOR AND JOHN DINGELL THE MICHIGAN CONGRESSIONAL DEMOCRATS WHO HAVE CHOSEN TO STICK THEIR HEADS IN THE SAND WITH THE UAW THERE'S SOMEBODY LIKE MICHIGAN GOVERNOR JOHN ENGLER WHO UNDERSTANDS AND CAN MAKE THE CASE THAT AMERICA'S FUTURE DEPENDS ON BEING PART OF THE WORLD OR AS MR CLINTON HIMSELF PLAINLY AND PROPERLY PUT IT IN KENTUCKY YESTERDAY YOU CANNOT RUN AND HIDE FROM THE WORLD WE LIVE IN THAT SAID THE PRESIDENT'S NAFTA CAMPAIGN HAS BEEN HITTING SOME FALSE NOTES THERE'S THE SILLY BUSINESS ABOUT LETTING THE REAL DEBATE BE CLOUDED BY NONSENSE ABOUT TAXES ON CRUISE SHIPS AND AIRLINES AND MR CLINTON'S RECENT HARPING ABOUT JAPAN AND EUROPE GETTING INTO BED WITH MEXICO SOUNDS LIKE A BAD PARODY OF THE ZIMMERMAN TELEGRAM BROUHAHA BEFORE WORLD WAR I HE SHOULD BE SELLING OPTIMISM ABOUT THE GLOBAL ECONOMY NOT PARANOIA IF HE STICKS TO THE HIGH GROUND AND WINS NAFTA MR CLINTON MAY SURPRISE THE PUNDITS DEMOCRATS WHO WOULDN'T BE CAUGHT DEAD ON THE SAME PLATFORM WITH BILLTHETAXMAN WILL BE LINING UP FOR A PHOTOOP WITH PRESIDENT CLINTONTHESTATESMAN 9311050084 931105 HEALTH MENTAL HEALTH MAY BE STORMIEST BATTLE OF CLINTON PLAN BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL SHOULD THE CLINTON HEALTH PLAN COVER A VISIT TO THE PSYCHOTHERAPIST UNLIMITED VISITS SHOULD IT COVER TREATMENT OF MENTAL ILLNESS EXACTLY THE SAME AS ANY OTHER ILLNESS THESE QUESTIONS ARE MAKING MENTAL HEALTH MEDICINE'S MOST CONTROVERSIAL FIELD ONE OF THE STORMIEST BATTLEGROUNDS OF HEALTH REFORM THE CLINTON PROPOSAL OFFERS BETTER MENTALHEALTH COVERAGE THAN MANY CURRENT PRIVATE PLANS BUT THE PROPOSAL STOPS SHORT OF A GOAL THAT MENTALHEALTH ADVOCATES ARDENTLY SOUGHT COVERING MENTAL ILLNESS THE SAME AS PHYSICAL DISORDERS NOW AS THE PLAN MOVES INTO CONGRESS THE ADVOCATES ARE LOBBYING FOR THAT GOAL BUT THEY ARE ALSO SQUABBLING AMONG THEMSELVES OVER WHAT KIND OF MENTAL HEALTH SHOULD GET PRIORITY INFLAMING LONGTIME TENSIONS BETWEEN MEDICAL DOCTORS WHO TREAT THE MOST SERIOUS MENTAL ILLNESSES AND PSYCHOLOGISTS WHO PRACTICE THERAPY MEANWHILE SOME CRITICS OF THE CLINTON PLAN SAY THE ENTIRE MENTALHEALTH BENEFIT IS AN EXPENSIVE FRILL AND THAT IT MAY NOT SURVIVE IN ANY FORM WHEN THE DUST SETTLES IN CONGRESS IT'S THE HARDEST PIECE OF THE BENEFITS PACKAGE AND IT'S THE LEAST UNDERSTOOD SAYS ONE SENIOR WHITE HOUSE OFFICIAL WHO HAS BEEN MEDIATING FOR ALL OF THE RIVAL FACTIONS ON MENTAL HEALTH THE CLINTON PLAN PROPOSES COVERING 60 DAYS A YEAR OF MENTALHEALTH AND SUBSTANCEABUSE TREATMENT INSIDE A HOSPITAL AND 30 DAYS OF OUTPATIENT PSYCHOTHERAPY THE NATIONWIDE DAY LIMITS WOULD VANISH IN THE YEAR 2001 AFTER THAT HEALTH PLANS WOULD SET LIMITS CASEBYCASE AS WITH OTHER KINDS OF HEALTH CARE THE PLAN CALLS MENTAL HEALTH AN INTEGRAL COMPONENT OF HEALTH CARE AND PROMISES TO END THE AGONY THAT FAMILIES CONFRONT WHEN A SERIOUS MENTAL ILLNESS OCCURS ITS SENSITIVE TONE REFLECTS THE FACT THAT MENTAL DISORDERS ONCE A SHAMEFUL SECRET ARE OUT OF THE CLOSET IN AMERICA TODAY IN TALK SHOWS AND BESTSELLING BOOKS INDEED THE PLAN'S ARCHITECTS INCLUDE A PRESIDENT AND VICE PRESIDENT WHO SPEAK OPENLY ABOUT THEIR OWN FAMILIES' MENTAL AILMENTS AND THERAPY BUT MENTALHEALTH LOBBYISTS REMAIN UPSET THAT THE CLINTON PLAN PLACES LIMITS ON MENTAL TREATMENT WE DON'T SEE CANCER LIMITED WE DON'T SEE HEART DISEASE LIMITED WE CERTAINLY DON'T UNDERSTAND WHY THE MENTALLY ILL ARE GOING TO BE TREATED DIFFERENTLY FROM EVERY OTHER PATIENT COMPLAINS JAY CUTLER CHIEF LOBBYIST FOR THE AMERICAN PSYCHIATRIC ASSOCIATION AT THE NATIONAL ALLIANCE FOR THE MENTALLY ILL WHICH REPRESENTS MENTAL PATIENTS AND THEIR FAMILIES SPOKESWOMAN FARRELL FITCH SAYS THE CLINTON PLAN'S LIMITS MEAN MENTAL PATIENTS WILL REMAIN THE ONLY GROUP OF AMERICANS THAT HAS EXPERIENCED FEDERALLY MANDATED DISCRIMINATION MENTAL TREATMENT REPRESENTS 10 OF ALL HEALTHCARE COSTS IN THE US AMOUNTING T67 BILLION IN 1990 ACCORDING TO THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES MENTAL ILLNESSES COST THE US ANOTHER 749 BILLION IN LOST PRODUCTIVITY AND EARNINGS THE DEPARTMENT'S RESEARCH INDICATES THE CLINTON ADMINISTRATION INSISTS IT IS COMMITTED TO GIVING MENTAL DISORDERS COVERAGE EQUAL TO ANY OTHERS BY THE YEAR 2001 ITS EXPLANATION FOR THE LIMITS THE US NEEDS A FEW YEARS TO LET THE HEALTHCARE SYSTEM ADD ENOUGH MENTAL SERVICES TO COVER EVERYONE PRIVATELY MENTALHEALTH OFFICIALS INSIDE AND OUTSIDE THE WHITE HOUSE ALSO SAY AN UNLIMITED PLAN MAY BE TOO EXPENSIVE BUT MENTAL HEALTH IS SUCH A MURKY FIELD THAT THERE IS FIERCE DEBATE OVER ITS COSTS SOME LOBBYISTS DOUBT THE FINAL HEALTH PLAN WILL REMOVE THE MENTALHEALTH LIMITS THE FIRST PHASE COULD WIND UP BEING WHAT WE HAVE TO LIVE WITH SAYS BRYANT WELCH A LAWYER AND PSYCHOTHERAPIST WHO IS A LOBBYIST FOR THE AMERICAN PSYCHOLOGICAL ASSOCIATION THE YEAR 2001 IS SORT OF LIKE THE LONG RUN AND AS JOHN MAYNARD KEYNES SAID IN THE LONG RUN WE'RE ALL DEAD IN FACT MENTALHEALTH ADVOCATES MAY FACE AN UPHILL BATTLE MERELY TO KEEP THE FIRST PHASE IN THE FINAL PLAN I WOULD SCALE THE PLAN BACK AND LEAVE MENTAL HEALTH OUT SAYS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS THE POWERFUL TRADE ASSOCIATION IS ONE OF MANY GROUPS CRITICIZING THE CLINTON PLAN AS TOO AMBITIOUS AND EXPENSIVE THE STANDARD BENEFIT PACKAGE OUGHT TO BE THE BASIC BENEFITS ESSENTIAL TO HEALTH MR JASINOWSKI SAYS THERE'S NO REASON TO CONCLUDE THAT THE FEDERAL GOVERNMENT HAS TO SUBSIDIZE MENTAL HEALTH AS PART OF A BASIC PACKAGE THE DOUBTS ABOUT THE CLINTON PLAN'S SWEEPING GOALS HAVE SET OFF A SCRAMBLE BY MENTALHEALTH GROUPS TO PRESERVE THEIR OWN INTERESTS IF THINGS HAVE TO BE CUT AND THEY WILL BE DON'T FORGET THE SICKEST PEOPLE SAYS MS FITCH OF THE NATIONAL ALLIANCE FOR THE MENTALLY ILL SHE WANTS TO REMOVE THE LIMIT ON HOSPITAL DAYS AND WORRIES THE CLINTON PROPOSAL IS SO BROAD IT COVERS ANY KIND OF DIAGNOSIS FROM KLEPTOMANIA TO SCHIZOPHRENIA HER ALLIES INCLUDE TWO INFLUENTIAL GROUPS PSYCHIATRIC HOSPITALS AND PSYCHIATRISTS THEIR CHIEF RIVAL IS THE PSYCHOLOGICAL ASSOCIATION WHICH REPRESENTS A LARGE FACTION OF PRIVATE THERAPISTS THEY COMPLAIN THE 30DAY OUTPATIENT LIMIT WILL DRIVE PATIENTS INTO HOSPITALS WHEN LONGERTERM PSYCHOTHERAPY MIGHT BE CHEAPER AND MORE EFFECTIVE MR WELCH THE ASSOCIATION'S LOBBYIST SAYS 30 DAYS MAY BE ENOUGH FOR A PATIENT ENDURING A DIVORCE DEATH OR OTHER LIFE CRISIS BUT YOU CANNOT TREAT AN INNERCITY YOUTH WHO HAS HAD MULTIPLE TRAUMAS YOU CANNOT TREAT A CHRONICALLY SUICIDAL CHARACTERDISORDER PATIENT IN THE SAME 30VISIT FORMAT HE SAYS MR WELCH SAYS HE'S BATTLING AN IMAGE PROBLEM FOR PSYCHOTHERAPY WHICH HE CALLS THE WOODY ALLEN SYNDROME THE BELIEF THAT THERAPY IS ONLY FOR NEW YORKERS WHO ARE JUST SELFINDULGENT HE ADDS I DON'T KNOW MR ALLEN HIS NEED MAY BE GENUINE BUT IT'S A DISCRIMINATORY STEREOTYPE THE FIGHTING AMONG RIVAL MENTALHEALTH WORKERS WORRIES SOME ADVOCATES ONCE ANY OF OUR GROUPS IS OUT THERE CRITICIZING ANY OF THE OTHERS IT THROWS INTO QUESTION THE WHOLE BENEFIT SAYS LOBBYIST CHRIS KOYANAGI OF THE BAZELON CENTER FOR MENTAL HEALTH LAW A WASHINGTON NONPROFIT GROUP THERE'S ENOUGH PEOPLE ON THE HILL READY TO CUT THE MENTALHEALTH BENEFIT THAT WE DON'T WANT TO PLAY INTO THAT THE DAY LIMITS VANISH IN 2001 PATIENTS IN HMOSTYLE PLANS PAY NO FEE PATIENTS IN HIGHERCOSTING PLANS PAY 20 OF FEES PATIENTS IN HMOSTYLE PLANS PAY 25 PER VISIT PATIENTS IN HIGHERCOSTING PLANS PAY 50 OF FEES THE DAY LIMITS VANISH IN 2001 ALSO IN 2001 THE FEES DROP TO 10 OR 20 OF FEES SEE RELATED ARTICLE EXPERTS DEBATE HOW TO COMPUTE COST OF MENTALHEALTH WSJ NOV 5 1993 9311050083 931101 ABREAST OF THE MARKET SLOWER EARNINGS GROWTH MAY SPELL TROUBLE FOR STOCKS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE AMERICA PRODUCED HEALTHY PROFITS IN THE THIRD QUARTER BUT EVEN THOUGH SOME PROFITS WERE STELLAR AND MOST EXCEEDED EXPECTATIONS ANALYSTS NOW WORRY THAT COMPANIES MAY HAVE TROUBLE SUSTAINING THE RECENT STRONG PACE OF GROWTH WITH INTEREST RATES ALREADY NEAR ROCKBOTTOM LEVELS ANALYSTS SAY INVESTORS ARE RELYING EVER MORE HEAVILY ON EARNINGS TO PUSH PRICES HIGHER SO SLOWER EARNINGS GROWTH COULD HINDER THE STOCK MARKET'S PERFORMANCE BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT OF ZACKS INVESTMENT RESEARCH SAYS A SURVEY OF THE NEARLY 700 COMPANIES IN THE DOW JONES INDUSTRY GROUPS SHOWS THAT SO FAR 62 HAVE REPORTED EARNINGS AS EXPECTED OR BETTER THAN ANALYSTS' ESTIMATES THIRDQUARTER EARNINGS FROM CONTINUING OPERATIONS BEFORE SPECIAL CHARGES AND GAINS GREW 257 FROM THE YEAR BEFORE THAT FIGURE SURPASSES THE 175 GROWTH IN THE SECOND QUARTER A SEPARATE WALL STREET JOURNAL SURVEY OF 597 COMPANIES SHOWED THAT CORPORATE AFTERTAX EARNINGS FROM CONTINUING OPERATIONS BUT INCLUDING SPECIAL CHARGES OR GAINS ROSE 24 COMPARED WITH AN 11 GAIN FOR THE SECOND QUARTER INDEED STELLAR EARNINGS REPORTS FROM COMPANIES SUCH AS FORD XEROX AND CATERPILLAR HAVE BUOYED THE SPIRITS OF MANY INVESTORS ABOUT FUTURE EARNINGS GROWTH BUT IF THE NUMBERS LOOK ROSY MR ZACKS CAUTIONS INVESTORS TO CONSIDER THAT ANALYSTS HAD DRASTICALLY REDUCED THEIR EARNINGS ESTIMATES AHEAD OF THE REPORTING SEASON MR ZACKS SAYS THAT THOUGH 25 EARNINGS GROWTH IS QUITE HEALTHY HE POINTS OUT THAT THE FIGURE IS PARTLY THE RESULT OF A VERY LOW YEAREARLIER COMPARISON IN ADDITION FOURTHQUARTER EARNINGS ARE EXPECTED ONLY TO MATCH THE THIRD QUARTER INDICATING A SLOWDOWN IN GROWTH MOMENTUM FOR THE FULL YEAR MR ZACKS ESTIMATES EARNINGS FOR THE DOW JONES UNIVERSE WILL GROW 2276 FROM A YEAR EARLIER IN 1994 EARNINGS GROWTH IS PROJECTED TO SLOW TO 1879 ONE OF THE BIGGER NEGATIVES IS THAT SO MUCH OF THE BETTER EARNINGS IS FROM COSTCUTTING AS OPPOSED TO REVENUE GROWTH MR ZACKS SAYS BUT COSTCUTTING SOON REACHES A POINT OF DIMINISHING RETURNS THAT POINT MAY ALREADY BE AT HAND SAYS SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS WHAT WE'RE SEEING IS THAT COST CONTROL AND PRODUCTIVITY GAINS ARE BEGINNING TO PETER OUT MR SOHN ARGUES WE HAVE A SITUATION WHERE WE'VE SQUEEZED THIS ORANGE AND GOTTEN SOME GOOD JUICE OUT OF IT BUT THE JUICE IS RUNNING OUT A CONTINUATION OF STRONG EARNINGS REQUIRES A PICKUP IN BROADBASED DEMAND MR SOHN SAYS BUT THE SIGNS OF THAT PICKUP HAVEN'T EMERGED YET EVEN WITHOUT THE POWER OF STRONG EARNINGS GROWTH MR SOHN BELIEVES THE STOCK MARKET ISN'T DEAD HE LOOKS TO SUBDUED INFLATION AND LOW INTEREST RATES TO HELP KEEP STOCK PRICES CLIMBING ALBEIT SLOWLY IN TODAY'S LOWINTERESTRATE ENVIRONMENT MR SOHN EXPECTS INVESTORS TO CONTINUE TO SEEK HIGHER YIELDS IN STOCKS YOU HAVE TO LOOK AT LIQUIDITY HE SAYS HOW MUCH CASH IS AROUND FOR INVESTORS TO USE AND RIGHT NOW THERE'S A LOT OF IT DESPITE THEIR CURRENT LOFTY LEVELS MR SOHN IS EXCITED ABOUT THE LONGTERM POTENTIAL FOR TECHNOLOGY AND COMMUNICATIONS STOCKS THE NEXT WAVE OF INNOVATION WILL COME FROM COMPANIES LIKE MICROSOFT AND INTEL HE SAYS THESE WILL BE LIKE INTERNATIONAL BUSINESS MACHINES AND XEROX WERE IN THE 1960S FACED WITH MORE MODEST EARNINGS GROWTH IN COMING QUARTERS ANALYSTS NEED TO LOWER THEIR PROFIT ESTIMATES SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP AT CURRENT ESTIMATES HE SAYS THE STOCK MARKET IS EXPECTED TO CLIMB 10 TO 15 NEXT YEAR MR JOHNSON ARGUES THAT BASED ON THE OUTLOOK FOR EARNINGS THOSE FIGURES SHOULD BE SHAVED TO ABOUT 3 TO 6 IT DOESN'T MEAN YOU SHOULD SUDDENLY GET BEARISH HE SAYS WHAT IT MEANS IS THE UPSIDE POTENTIAL FOR STOCKS ISN'T WHAT YOU THOUGHT IT WAS MR JOHNSON ATTRIBUTES THE SLOWER EARNINGS MOMENTUM TO THE ANEMIC ECONOMIC RECOVERY THE WEAKEST REBOUND IN THE POSTWAR PERIOD THE SLUGGISH RECOVERY SUGGESTS THAT INVESTORS SHOULD FOCUS ON COMPANIES THAT AREN'T DEPENDENT ON THE ECONOMIC CYCLE FOR PROFIT GAINS HE SAYS SMART INVESTORS HAVE MOVED BACK TO THE OLD GROWTH STOCKS MR JOHNSON SAYS FIND ME A BEATEN DOWN DRUG STOCK THAT THE WORLD HATES OR A BEATENUP TOBACCO HOUSEHOLD PRODUCTS OR FOOD STOCK I THINK YOU'LL FIND SOME VALUE THERE PARTICULARLY IN THIS ENVIRONMENT BUT TO OTHER OBSERVERS THE EARNINGS LANDSCAPE DOESN'T LOOK NEARLY SO BLEAK RICHARD PUCCI SENIOR VICE PRESIDENT OF I/B/E/S A SERVICE THAT MONITORS ANALYSTS' EARNINGS ESTIMATES PREDICTS THAT EARNINGS WILL CONTINUE IMPROVING HE SAYS ANALYSTS ARE NOW EXPECTING EARNINGS TO CLIMB 18 IN 1994 COMPARED WITH AN ESTIMATED 13 TO 14 GROWTH THIS YEAR IN 1992 EARNINGS GREW 12 FROM THE YEAR EARLIER THERE ARE A LOT OF PEOPLE OUT THERE LOOKING FOR A NEGATIVE STORY ON EARNINGS BUT EARNINGS KEEP BEATING THE ESTIMATES MR PUCCI SAYS I THINK THE OVERALL TREND IS UP FOR THE FORESEEABLE FUTURE HE BELIEVES SOME PICKUP IN OVERSEAS ECONOMIES WILL HELP LIFT EARNINGS FOR LARGE US MULTINATIONALS THAT BENEFIT FROM RISING EXPORTS IF A STOCK MARKET CORRECTION COMES MR PUCCI ADDS IT WILL MOST LIKELY BE CAUSED BY A MODEST RISE IN INTEREST RATES DUE TO A STRONGER ECONOMY IT'S NOT GOING TO BE BECAUSE EARNINGS SLOW DOWN HE CONTENDS A SMALL UPTICK IN INFLATION AND INTEREST RATES MAY SCARE PEOPLE A LITTLE STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO IS ENCOURAGED TO SEE A PREPONDERANCE OF POSITIVE EARNINGS SURPRISES IN SUCH A SLUGGISH ECONOMIC ENVIRONMENT EVEN IN A LOWINFLATION CLIMATE THAT LIMITS PRICE INCREASES COMPANIES ARE STILL BEATING ANALYSTS' ESTIMATES BECAUSE OF CONTINUED RESTRUCTURING MR RESNICK SAYS THAT TELLS ME EARNINGS MOMENTUM CAN STILL BE BETTER THAN THE UNDERLYING ECONOMY HE ADDS MR RESNICK TRACKS STOCK PRICE MOVEMENTS ON THE DAY EARNINGS REPORTS ARE RELEASED TO GAUGE THE OUTLOOK FOR THE STOCK HE NOTES THAT TWOTHIRDS OF THE FINANCIAL STOCKS AND OTHER INTERESTRATESENSITIVE STOCKS IN HIS DATABASE FELL ON REPORTS OF POSITIVE EARNINGS SURPRISES THIS TELLS ME THAT INVESTORS THINK FINANCIAL STOCKS HAVE HAD THEIR RUN AND THAT INTEREST RATES HAVE REACHED BOTTOM MR RESNICK SAYS STOCKS OF CONSUMER BRAND COMPANIES INCLUDING SOME OF THE GIANT DRUG FIRMS ROSE DESPITE MIXED EARNINGS REPORTS MR RESNICK SAYS THAT TELLS YOU THAT MARKET PSYCHOLOGY FELT THAT THE GROUP HAS BEEN OVERSOLD HE SAYS MR RESNICK ALSO IS ENCOURAGED THAT THE LARGEST GROUPING OF STOCKS IN HIS DATABASE WERE THOSE THAT ROSE ON POSITIVE EARNINGS SURPRISES THAT'S WHERE BULL MARKET DRIVE COMES FROM HE SAYS IT'S A POSITIVE INDICATION FOR THE STOCK MARKET STOCK PRICES WERE MIXED AMID PROFITTAKING AND A LATE SELLOFF IN PAPERRELATED SHARES THE DOW JONES INDUSTRIAL AVERAGE FELL 727 POINTS TO 368059 STANDARD & POOR'S 500STOCK INDEX GAINED 010 TO 46783 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCHED UP 039 TO 25938 THE NASDAQ COMPOSITE INDEX JUMPED 577 TO 77926 FOR THE WEEK THE INDUSTRIAL AVERAGE ROSE 3129 OR 086 THE S&P 500 GAINED 456 OR 098 AND THE NASDAQ COMPOSITE ADDED 657 OR 085 WORLDWIDE STOCK PRICES ROSE FRIDAY IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 057 TO 11349 INTERNATIONAL PAPER SLUMPED IN LATE TRADING ENDING DOWN 2 1/4 TO 59 1/2 AFTER DONALDSON LUFKIN & JENRETTE MADE NEGATIVE COMMENTS ABOUT PAPER STOCKS GEORGIAPACIFIC FELL 2 1/4 TO 64 1/4 STRENGTH IN TECHNOLOGY AND COMMUNICATIONS STOCKS LIFTED THE NASDAQ INDEX BIG GAINERS INCLUDED MICROSOFT WHICH ROSE 1 1/8 TO 80 1/8 NEXTEL COMMUNICATIONS 3 3/4 TO 54 3/8 CISCO SYSTEMS 1 1/2 TO 51 1/4 AND DSC COMMUNICATIONS 1 5/8 TO 65 5/8 AETNA LIFE & CASUALTY CLIMBED 2 7/8 TO 65 3/4 EARNINGS JUMPED TO 203 A SHARE IN THE THIRD QUARTER FROM 95 CENTS A YEAR EARLIER IT SAID EARNINGS GROWTH WAS STRONGEST IN ITS PROPERTYCASUALTY LINES AMERICAN EXPRESS ADDED 3/4 TO 32 1/4 AFTER SALOMON BROTHERS RAISED AN INVESTMENT RATING ON THE STOCK TO BUY FROM HOLD IT CITED RECENT WEAKNESS IN THE NEW YORK FINANCIAL SERVICE COMPANY'S SHARE PRICE AND SAID IT EXPECTS AMERICAN EXPRESS TO POST IMPROVED EARNINGS OVER THE NEXT TWO QUARTERS PROFITTAKING HIT THE BIG THREE AUTO MAKERS AFTER THEIR RECENT GAINS GENERAL MOTORS FELL 1 3/8 TO 47 5/8 FORD MOTOR 1 TO 61 7/8 AND CHRYSLER 1 1/4 TO 55 7/8 CHARLES SCHWAB INCREASED 2 1/8 TO 34 5/8 AND MORGAN STANLEY ROSE 1 7/8 TO 78 5/8 LEHMAN BROTHERS UPGRADED SCHWAB TO OUTPERFORM FROM UNDERPERFORM AND RAISED MORGAN STANLEY TO BUY FROM OUTPERFORM UAL THE PARENT OF UNITED AIRLINES FELL 3/4 TO 152 AFTER SOARING 6 ON THURSDAY BECAUSE OF A STRONG EARNINGS REPORT THE STOCK WAS DOWNGRADED BY KIDDER PEABODY TO NEUTRAL FROM OUTPERFORM YPF SA SLIPPED 5/8 TO 27 1/4 AFTER MERRILL LYNCH CUT A NEARTERM RATING TO NEUTRAL FROM ABOVE AVERAGE MERRILL LOWERED ITS LONGTERM VIEW ON THE ARGENTINE OIL AND GAS PRODUCER TO ABOVE AVERAGE FROM BUY HONG KONG TELECOMMUNICATIONS SURGED 3 7/8 TO 66 THE MOVE IN PART TRACKED THE CONTINUED SURGE IN MANY BLUECHIP ISSUES ON THE HONG KONG STOCK MARKET ANALYSTS SAID SHANGHAI PETROCHEMICAL ANOTHER HONG KONGTRADED STOCK JUMPED 3 TO 33 3/8 THE COMPANY DISCLOSED THURSDAY THAT ITS EARNINGS SURGED 169 IN THE SIX MONTHS ENDED JUNE 30 XEROX RALLIED FOR A SECOND STRAIGHT DAY GAINING 2 7/8 TO 79 1/4 IT CLIMBED 5 3/4 THURSDAY AFTER THE OFFICE PRODUCTS COMPANY REPORTED SOLID THIRDQUARTER PROFIT WEINGARTEN REALTY INVESTORS SLIPPED 1 1/8 TO 40 EVEN THOUGH THE REAL ESTATE INVESTMENT TRUST REPORTED A THIRDQUARTER PROFIT OF 37 CENTS A SHARE COMPARED WITH EARNINGS OF 28 CENTS BEFORE A CHARGE LAST YEAR IT DECLARED A QUARTERLY DIVIDEND OF 54 CENTS 9311050082 931105 INTERNATIONAL LLORENS NAMED CHAIRMAN OF VOLKSWAGEN'S SEAT UNIT MADRID VOLKSWAGEN AG APPOINTED JUAN LLORENS AS CHAIRMAN OF ITS TROUBLED SPANISH SUBSIDIARY SEAT SA HE IS A FORMER MEMBER OF THE UNIT'S BOARD THE GERMAN AUTO MAKER ALSO CONFIRMED THAT IT WILL ATTEMPT TO RELOCATE 2000 OF THE 9000 WORKERS IT PLANS TO LAY OFF FROM SEAT'S INEFFICIENT ZONA FRANCA PLANT IN BARCELONA AT LEAST 3000 OTHERS WILL BE GIVEN EARLY RETIREMENT JUAN ANTONIO DIAZ ALVAREZ WAS DISMISSED AS CHAIRMAN OF THE SPANISH CAR COMPANY IN LATE SEPTEMBER AFTER VW REJECTED HIS RESCUE PLAN FOR THE UNIT WHICH IS EXPECTED TO HAVE A 100 BILLIONPESETA 738 MILLION LOSS THIS YEAR VW WANTED MORE DRASTIC MEASURES TAKEN THAN WHAT HE PROPOSED FOLLOWING MR DIAZ ALVAREZ'S DEPARTURE SPAIN WAS RIFE WITH RUMORS THAT VW WOULD SEEK TO CLOSE THE SPANISH COMPANY'S PRODUCTION FACILITIES OR TRANSFER THEM TO THE PARENT COMPANY A FEAR THAT PROMPTED UNIONS TO STAGE A SERIES OF STRIKES LAST WEEK AT THREE SEAT FACTORIES THE 59YEAROLD MR LLORENS A FORMER CHAIRMAN OF SPANISH TRUCK MAKER EMPRESA NACIONAL DE AUTOCAMIONES SA SAID HIS APPOINTMENT CONFIRMED THAT SEAT HAS A FUTURE AS A CAR PRODUCER SEAT WILL BE A COMPANY NOT JUST A FACTORY HE SAID I ACCEPTED THE JOB ONLY AFTER VW CHAIRMAN FERDINAND PIECH SAID THAT THIS WAS VW'S OBJECTIVE 9311050081 931105 THE BUSINESS OF LAW LEGAL BEAT EMPLOYERS FACE OVERTIME TRAP IF THEY PENALIZE PARTIAL DAYS OFF BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SOME COMPANIES ARE FALLING INTO AN UNEXPECTED POTHOLE ON THE ROAD TO THE FLEXIBLE WORKPLACE OVERTIME COURTS ARE RULING THAT COMPANIES TRIGGER AN OBSCURE LAW WHEN THEY DOCK THE PAY OF A SALARIED EMPLOYEE WHO TAKES PART OF A DAY OFF THOSE WORKERS AUTOMATICALLY BECOME HOURLY WORKERS AND THAT MEANS EXTRA PAY WHEN THEY PUT IN EXTRA HOURS THE OVERTIME TRAP IS BECOMING AN INCREASING PROBLEM FOR COMPANIES NATIONWIDE GENERAL DYNAMICS CORP THE BIG DEFENSE CONTRACTOR IS ON THE HOOK FOR SEVERAL MILLION DOLLARS IN OVERTIME PAYMENTS AS A RESULT OF A RECENT SETTLEMENT AND O'BRIEN & GERE ENGINEERS INC OF SYRACUSE NY IN LAST MONTH AGREED TO MAKE A SIXFIGURE PAYMENT TO WORKERS IN THE WAKE OF A LABOR DEPARTMENT AUDIT THE STAKES ARE HUGE A STUDY LAST YEAR BY THE EMPLOYMENT POLICY FOUNDATION A WASHINGTONBASED INDUSTRY THINK TANK ESTIMATED THAT EMPLOYERS MAY BE LIABLE FOR AS MUCH AS 20 BILLION A YEAR IN UNPAID OVERTIME ONE REASON THE NUMBER IS SO LARGE IS THAT RECENT COURT DECISIONS EXTEND OVERTIME BENEFITS EVEN TO EMPLOYEES WHOSE PAY WAS NOT ACTUALLY REDUCED BUT COULD HAVE BEEN UNDER COMPANY POLICY WHAT YOU REALLY HAVE IS AN EMPLOYER WORKING PEOPLE LONG HOURS WHO WANTS TO DOCK THEM WHEN THEY TAKE A DAY OFF AND THEN AVOID ANY OVERTIME RESPONSIBILITY FOR IT SAYS JOHN ZALUSKY AN AFLCIO ECONOMIST EMPLOYERS REALLY WANT IT BOTH WAYS BUT EMPLOYERS FEEL THAT THE LATEST DECISIONS HAVE MADE IT MUCH MORE DIFFICULT FOR THEM TO ACCOMMODATE GROWING EMPLOYEE DEMANDS FOR FLEXIBLE HOURS THIS IS THE MOST BIZARRE IRRATIONAL BIT OF GOVERNMENT POLICY I'VE EVER SEEN SAYS CORNELIUS B MURPHY JR O'BRIEN & GERE'S PRESIDENT RECENTLY THE FLEXIBLE LEAVE COALITION WHOSE MEMBERS INCLUDE THE US CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS HAS BEEN LOBBYING CONGRESS TO CHANGE THE LAW PRESSURE FROM STATES HAS ALREADY PROMPTED THE LABOR DEPARTMENT TO EXEMPT PUBLIC EMPLOYERS FROM THE RULES ALTHOUGH MANY SUITS THAT PREDATED THE CHANGE ARE PENDING LAST SUMMER SEVERAL HUNDRED NEW YORK CITY MUNICIPAL EMPLOYEES WON A RULING IN FEDERAL COURT THAT THE WORKERS' ATTORNEYS SAY COULD RESULT IN DAMAGES OF AS MUCH AS 15 MILLION THE FEDERAL APPEALS COURT IN SAN FRANCISCO IS SCHEDULED TODAY TO HEAR ARGUMENTS TODAY IN AN OVERTIME CASE BROUGHT BY SAN DIEGO COUNTY PROBATION OFFICERS THE DILEMMA IS UNIVERSAL SAYS WILLIAM J KILBERG A WASHINGTON LAWYER FORMERLY WITH THE LABOR DEPARTMENT NOTING THAT COURTS HAVE RECENTLY HELD THAT COMPANIES THAT TAKE AWAY ACCRUED LEAVE FOR PARTIALDAY ABSENCES ARE JUST AS VULNERABLE TO THE OVERTIME RULES I CANNOT THINK OF A SINGLE LARGE EMPLOYER IN THE US WHO DOES NOT REDUCE ACCRUED LEAVE IN PARTIALDAY INCREMENTS IN THE GENERAL DYNAMICS CASE AS MANY AS 15000 CURRENT AND FORMER EMPLOYEES MOST OF WHOM WORKED AT THE COMPANY'S FORMER MISSILE DIVISION IN POMONA CALIF MAY BE ELIGIBLE FOR BACK PAY UNDER A TENTATIVE SETTLEMENT NOTICES ARE BEING SENT TO THE EMPLOYEES WHO MUST FILE CLAIMS TO GET ANY MONEY A SPOKESMAN SAID THE COMPANY DOESN'T THINK IT HAS ANY LIABILITY BUT IS CONSIDERING THE SETTLEMENT IN ORDER TO AVOID THE COST OF LITIGATION OTHER DEFENSE ATTORNEYS FEAR THAT OVERTIME CASES AGAINST BIG EMPLOYERS ARE BECOMING A GROWING MARKET FOR THE PLAINTIFFS' BAR I THINK IT WILL BECOME A COTTAGE INDUSTRY BECAUSE THE DOLLARS ARE SO LARGE SAYS SAMUEL D WALKER A FORMER LABOR DEPARTMENT OFFICIAL AND NOW PRACTICING LAW IN WASHINGTON FOR MANY EMPLOYERS THE IRONY IS THAT SUCH DECISIONS ARE FORCING THEM TO ADOPT MORE RESTRICTIVE LEAVE POLICIES MALCOLM PIRNIE INC A WHITE PLAINS NY ENGINEERING FIRM IS TRYING TO SETTLE A LONGRUNNING CASE WITH THE LABOR DEPARTMENT FOR AN ESTIMATED 750000 THE FIRM WAS SUED PARTLY BECAUSE IT DOCKED THE PAY OF AN EMPLOYEE WHO WANTED TO SPEND A FEW HOURS A WEEK AT THE OFFICE FINISHING HER DOCTORAL THESIS MALCOLM PIRNIE SAID IT HAD INSTITUTED THE POLICY IN RESPONSE TO EMPLOYEE CONCERNS EVEN THE FEDERAL FAMILY LEAVE ACT WHICH PROVIDES AN EXEMPTION FROM THE OVERTIME RULES IN CASES WHERE EMPLOYEES HAVE MEDICAL EMERGENCIES HAS LEFT SOME COMPANIES IN A QUANDARY FOR ONE THING THE LAW DOESN'T PROTECT COMPANIES WITH 50 OR FEWER EMPLOYEES SEROTTA MADDOCKS EVANS & CO AN AUGUSTA GA ACCOUNTING FIRM WOULD LIKE TO GRANT ITS 26 EMPLOYEES THE PROTECTIONS AFFORDED IN THE LEAVE ACT AND UNTIL RECENTLY TRIED TO GIVE THEM TIME OFF TO ATTEND TO FAMILY ILLNESS AND OTHER PERSONAL MATTERS THAT'S CHANGING BECAUSE THE COMPANY WANTS TO AVOID THE OVERTIME TRAP NOW SAYS PRESIDENT ABRAM SEROTTA WE ARE TAKING STEPS TO TAKE AWAY OR NOT PROVIDE THOSE BENEFITS LOS ANGELES PUBLICINTEREST LAW FIRM HALL & PHILLIPS HAS SPLIT IN TWO THE FIVEYEAROLD FIRM ESTABLISHED BY THE TWO LAWYERS WHO FOUNDED THE CENTER FOR LAW IN THE PUBLIC INTEREST IN 1971 HAD SPECIALIZED IN A VARIETY OF PUBLICINTEREST WORK AND HAD REPRESENTED WHISTLEBLOWERS IN FALSECLAIMS ACTIONS AGAINST BUSINESSES THAT DEFRAUDED THE FEDERAL GOVERNMENT JOHN PHILLIPS 50 YEARS OLD WILL CONTINUE THE FALSECLAIMS PRACTICE AT THE NEW FIRM OF PHILLIPS COHEN & GOLDSTEIN IN WASHINGTON FORMER PARTNER CARLYLE HALL 50 WILL CONTINUE TO DO PUBLICINTEREST WORK EMPHASIZING LANDUSE AND CONSUMERPROTECTION ISSUES AT HALL & ASSOCIATES IN LOS ANGELES 9311050080 931105 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION MUSICLAND STORES CORP AN OFFERING OF EIGHT MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP MERRILL LYNCH & CO AND SMITH BARNEY SHEARSON INC PROPERTY TRUST OF AMERICA AN OFFERING OF EIGHT MILLION CUMULATIVE CONVERTIBLE PREFERRED SHARES VIA GOLDMAN SACHS & CO AG EDWARDS & SONS INC AND KIDDER PEABODY & CO TOSCO CORP AN OFFERING OF 26 MILLION COMMON SHARES VIA MORGAN STANLEY & CO LEHMAN BROTHERS INC AND SMITH BARNEY SHEARSON INC US LONG DISTANCE CORP AN OFFERING OF 16 MILLION COMMON SHARES VIA CHICAGO CORP AND STEPHENS INC 9311050079 931105 NOTABLE & QUOTABLE FROM A NEW YORK TIMES ARTICLE YESTERDAY ON BLACK REACTIONS TO THE MAYORAL ELECTION IN WHICH RUDOLPH GIULIANI DEFEATED INCUMBENT DAVID DINKINS ALISSA CAVE A 17YEAROLD SENIOR AT HILLCREST HIGH SCHOOL IN QUEENS SAID THE MEMBERS OF HER CLASS ON GOVERNMENT AGREED THAT UNDER MR GIULIANI THEIR CHANCES OF GOING TO JAIL WOULD BE GREATER THAN OF THEIR BEING SUCCESSFUL GIULIANI HAS TALKED ABOUT WANTING TO BUILD MORE PRISONS SHE SAID I THINK KIDS LIKE ME ARE WORRIED ABOUT THAT 9311050078 931105 EXPERTS DEBATE HOW TO COMPUTE COST OF MENTALHEALTH BENEFITS BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL AT THE HEART OF THE FIERCE DEBATE OVER MENTALHEALTH CARE ARE TWO SHARPLY DIFFERENT VIEWS OF COSTS THE CLINTON ADMINISTRATION IS SEEKING A MENTALHEALTH BENEFIT THAT WOULD COST AN AVERAGE OF 240 TO 340 A PERSON ACCORDING TO OFFICIALS CLOSE TO THE BENEFIT'S PLANNERS BUT MENTALHEALTH ADVOCATES ARGUE THAT AMOUNT COULD BUY A FAR MORE GENEROUS BENEFIT THAN THE ONE IN THE CLINTON PROPOSAL THEY SAY THE CLINTON COST ESTIMATES ARE BASED ON HISTORICAL DATA EVEN THOUGH HEALTH PLANS INCREASINGLY CONTROL COSTS THROUGH MANAGED CARE REVIEWING EACH CASE INDIVIDUALLY INSTEAD OF SETTING CAPS FOR EACH MALADY AND PROCEDURE WITH A MANAGEDCARE MODEL THE CLINTON PROPOSAL WOULDN'T NEED LIMITS ON THE NUMBER OF DS A PATIENT CAN RECEIVE HOSPITAL AND OUTPATIENT TREATMENT THE ADVOCATES SAY THEY ADD THAT THE PLAN COULD ALSO COVER BADLY NEEDED EXTRA SERVICES SUCH AS DAY PROGRAMS FOR MENTAL PATIENTS WHO ARE SERIOUSLY ILL BUT DON'T NEED TO BE IN A HOSPITAL ONE ADVOCATE BARRY BRAUTH OF NEW YORK STATE'S OFFICE OF MENTAL HEALTH SAYS THE TOTAL PUBLIC AND PRIVATE MENTALHEALTH EXPENDITURES IN HIS STATE AMOUNT TO ABOUT 330 A PERSON THAT COUNTS ALL HOSPITALS AND THERAPISTS WITHOUT ANY DAY LIMITS SINCE NEW YORK HAS FAR MORE MENTALHEALTH PATIENTS THAN MOST STATES THE NATIONAL AVERAGE SHOULD BE WELL BELOW 330 MR BRAUTH FIGURES AND UNCLE SAM'S COST IN THE CLINTON PLAN SHOULD BE LOWER STILL BECAUSE PATIENTS WOULD BE REQUIRED TO C HIP IN 20 OF THEIR MENTALHEALTH HOSPITAL BILLS AND 50 OF THEIR PSYCHOTHERAPY BILLS ADVOCATES POINT TO THE MENTALHEALTH PLAN AT THE BANKING GIANT FIRST CHICAGO CORP IT REVIEWS EACH PATIENT'S MENTALHEALTH TREATMENT CASE BY CASE BUT DOESN'T IMPOSE ANY ACROSSTHEBOARD LIMITS EVEN ON PSYCHOTHERAPY THE TOTAL COST LESS THAN 300 PER EMPLOYEE WE'VE BEEN ABLE TO MANAGE THOSE COSTS AND AT THE SAME TIME HAVE THE MOST LIBERAL MENTALHEALTH BENEFITS OF ANY COMPANY ANYONE SEEMS TO KNOW SAYS WAYNE BURTON FIRST CHICAGO'S MEDICAL DIRECTOR MR BRAUTH AND OTHER MENTALHEALTH SUPPORTERS MET THIS FALL WITH WHITE HOUSE OFFICIALS TO PRESS FOR A SIMILAR APPROACH IN THE CLINTON PLAN THE TALKS BROKE DOWN IN PART BECAUSE OF OBJECTIONS BY THE HEALTH CARE FINANCING ADMINISTRATION WHICH MANAGES MEDICARE AND HAS BEEN THE CLINTON PLAN'S CHIEF NUMBER CRUNCHER HCFA OFFICIALS SAY IT WOULD BE WRONG TO BUILD A BUDGET ON THE ASSUMPTION THAT MANAGED CARE WILL SWEEP THE NATION AS MENTALHEALTH ADVOCATES SUGGEST I'M JUST NOT SURE THAT THERE'S ANY PARTICULAR BIAS IN THE CLINTON PLAN TOWARD MANAGED CARE SAYS GUY KING HCFA'S INFLUENTIAL CHIEF ACTUARY MR KING SAYS HCFA BASED ITS COST ESTIMATES ON THE ASSUMPTN THAT ABOUT 50 OF AMERICANS WOULD HAVE MANAGEDCARE HEALTH INSURANCE HE SAYS HCFA FIGURES THAT PERCENTAGE IS ACCURATE TODAY AND BELIEVES IT WON'T CHANGE FOR THE REST OF THE CENTURY SEE RELATED ARTICLE HEALTH MENTAL HEALTH MAY BE STORMIEST BATTLE OF CLINTON PLAN WSJ NOV 5 1993 9311050077 931105 TECHNOLOGY & HEALTH NASA CHIEF SAYS A JOINT SPACE STATION WITH RUSSIA WON'T HURT US FIRMS BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EXCEPT IN ONE CASE AFFECTING LOCKHEED CORP MOSCOW WON'T BE TAKING MAJOR BUSINESS FROM US AEROSPACE COMPANIES IF THE US AND RUSSIA MERGE THEIR SPACESTATION PROJECTS NASA CHIEF DANIEL GOLDIN SAID LOCKHEED HAD BEEN IN THE RUNNING TO SUPPLY A VESSELLIKE NAVIGATIONAL AND CONTROL DEVICE FOR THE SPACE STATION BUT IN A TECHNICAL REPORT TO THE WHITE HOUSE ON A POSSIBLE SPACESTATION MERGER THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND RUSSIA'S SPACE AGENCY CHOSE INSTEAD TO USE A SIMILAR PIECE OF RUSSIAN HARDWARE KNOWN AS A TUG TO KEEP THE SPACE STATION PROPERLY POSITIONED IN ORBIT MR GOLDIN SAID THE COST OF THE RUSSIAN HARDWARE WHICH THE US WOULD LEASE FROM MOSCOW WAS SIGNIFICANTLY LOWER THAN THAT FOR LOCKHEED'S EQUIPMENT WHICH WAS ORIGINALLY DEVELOPED FOR A SECRET US MILITARY SATELLITE A SPOKESMAN FOR LOCKHEED WHICH HAS MILLIONS OF DOLLARS OF OTHER SPACESTATION SUBCONTRACTS SAID THE VALUE OF THE NAVIGATIONAL DEVICE HASN'T BEEN PUBLICLY RELEASED ADDRESSING FEARS THAT THE US WOULD LOSE JOBS TO RUSSIA IF PRESIDENT CLINTON DECIDES TO GO AHEAD WITH SUCH A MERGER MR GOLDIN SAID THE TECHNICAL PLANS RETAIN OTHER MAJOR US COMPONENTS HE POINTED TO CONTINUED USE OF AN ALUMINUM LATTICEWORK TRUSS THAT WOULD BE SUPPLIED BY MCDONNELL DOUGLAS CORP SOLAR POWER ARRAYS TO BE SUPPLIED BY ROCKWELL INTERNATIONAL CORP'S ROCKETDYNE DIVISION AND PRESSURIZED LIVING AND LAB MODULES UNDER CONTRACT TO BOEING CO THOSE COMPANIES HAD ALREADY SEEN THEIR CONTRACTS CUT BY PRESIDENT CLINTON'S DECISION EARLIER THIS YEAR TO SCALE DOWN THE SPACE STATION TO SAVE MONEY CONGRESS HAS RAISED FEARS THAT HARDHIT CONTRACTORS WOULD LOSE EVEN MORE BUSINESS IF THE RUSSIANS WERE BROUGHT ON BOARD AND ARE PARTICULARLY WORRIED THAT NASA WOULD BEGIN BUYING HARDWARE FROM RUSSIA WE ARE NOT CUTTING ANYTHING OUT OF THE US CONTRACTORS MR GOLDIN TOLD REPORTERS WE ADD THE RUSSIAN EQUIPMENT ON POLITICAL LEADERS IN MOSCOW AND WASHINGTON STILL MUST MAKE THE FINAL DECISION ON WHETHER TO TAKE THE ULTIMATE STEP IN ENDING THEIR COLD WARERA SPACE RACE AND TOGETHER BUILD THE MOST EXPENSIVE SPACE PROJECT EVER US OFFICIALS WHO ARE ENTHUSIASTIC ABOUT A MERGER INDICATE A DECISION COULD BE MADE BY THE TIME VICE PRESIDENT AL GORE VISITS MOSCOW IN MIDDECEMBER BUT CONGRESS HAS EXPRESSED RESERVATIONS THAT COULD CAUSE FUNDING PROBLEMS FOR THE PROJECT THE TECHNICAL OPTION PRESENTED TO THE WHITE HOUSE CALLS FOR THE US TO RETAIN ITS LEAD ON THE PROJECT WHICH ALREADY INCLUDES COMPONENTS FROM EUROPE CANADA AND JAPAN BUT RUSSIA WHICH HAS GAINED VAST EXPERIENCE BY FLYING SPACE STATIONS SINCE 1971 WOULD CLEARLY CONTRIBUTE MORE THAN THE OTHER US PARTNERS MISSION CONTROL OFFICIALS IN HOUSTON WOULD BE CHIEFLY IN CHARGE OF COMMUNICATIONS WITH THE LABORATORY WHICH WOULD ORBIT THE EARTH FOR 10 YEARS AFTER COMPLETION IN OCTOBER 2001 THE DESIGNS SHOW THAT MERGING THE STILLUNBUILT US SPACE STATION WITH RUSSIAN PLANS FOR A SUCCESSOR TO ITS ORBITING MIR SPACE STATION WOULD HAVE ASTRONAUTS LIVING AND WORKING IN SPACE TWO YEARS EARLIER THAN IF THE RUSSIANS WEREN'T INVOLVED MEANWHILE THE PLAN SPELLS OUT A NEW MISSION FOR THE SPACE SHUTTLE CALLING FOR AS MANY AS 10 SHUTTLE VISITS BETWEEN 1995 AND 1997 TO THE RUSSIAN MIR STATION NOW IN ORBIT 9311050076 931105 THE WEAK CASE AGAINST NAFTA BY MICHAEL DUVAL IN COLLECTING MY THOUGHTS RECENTLY ON THE NORTH AMERICAN FREE TRADE AGREEMENT I REVIEWED THE PUBLISHED LITERATURE SOME CONGRESSIONAL TESTIMONY AND OTHER INFORMATION REFLECTING ARGUMENTS FOR AND AGAINST THE TREATY I WAS SURPRISED TO FIND NO CREDITABLE CASE MADE IN OPPOSITION THE OPPOSITION SEEMS BASED ON THE VOLATILE MIXTURE OF ECONOMIC NATIONALISM AND POPULISM REFLECTED IN THE SOUND BITES OF ROSS PEROT PAT BUCHANAN AND RICHARD GEPHARDT NONE OF THEIR MATERIALS ESPECIALLY ROSS PEROT AND PAT CHOATE'S TRULY SILLY BOOK IS BASED ON CREDIBLE ECONOMIC ANALYSIS THEY ARE SIMPLY A COLLECTION OF DEMAGOGIC SLOGANEERING DEVOID OF ANALYSIS OR REASON NOTWITHSTANDING THE LACK OF SUBSTANTIVE ARGUMENTS THE NAFTA OPPONENTS HAVE BEEN EXTRAORDINARILY SUCCESSFUL IN POISONING THE WELL OF PUBLIC OPINION A 1989 CBS POLL SHOWED THAT 47 OF AMERICANS THOUGHT THAT THE US WOULD BE THE NUMBER ONE POWER IN THE 21ST CENTURY BUT BY 1991 THE POLL SHOWED THAT ONLY 25 THOUGHT SO THIS LATER SURVEY FOUND THAT 65 THINK PROTECTING AMERICAN JOBS IS THE FIRST PRIORITY OF AMERICAN FOREIGN POLICY 70 THINK FOREIGN INVESTMENT IS BAD FOR THE US AND 67 BELIEVE WE SHOULD RESTRICT FOREIGN IMPORTS IN ORDER TO PROTECT AMERICAN INDUSTRY AND AMERICAN JOBS EVEN THOUGH THE ECONOMIC EVIDENCE IS THAT IMPORTS HAVE NO NET IMPACT ON JOBS IN 1991 A GALLUP POLL FOUND THAT 83 OF AMERICANS FAVORED THE USCANADA FREE TRADE AGREEMENT BUT BY SEPTEMBER 1992 THIS SUPPORT HAD ERODED TO THE POINT WHERE OPPOSITION TO NAFTA WAS 57 COMPARED WITH 33 IN SUPPORT BY MARCH OF THIS YEAR THERE WERE 63 OPPOSED AND ONLY 31 IN FAVOR THIS EXTRAORDINARY EROSION IN PUBLIC SUPPORT FOR FREE TRADE HAS BEEN REFLECTED IN CONGRESSIONAL VOTES WHEN CONGRESS PASSED THE KENNEDY TRADE BILL IN 1962 THE SENATE DEMOCRATS VOTED 561 IN FAVOR AND THE REPUBLICANS WERE 227 IN FAVOR IN 1986 MR GEPHARDT'S ANTITRADE AMENDMENT PASSED THE HOUSE 2364 PRESIDENT CLINTON IS A STAUNCH SUPPORTER OF NAFTA YET FOR ALL HIS ELOQUENCE IN SUPPORT OF FREE TRADE HIS LEADERSHIP LEAVES SOMETHING TO BE DESIRED IF A VOTE WERE TAKEN IN CONGRESS TODAY IT IS LIKELY THAT NAFTA WOULD FAIL THAT SAID TIME IS ON THE SIDE OF THE NAFTA FORCES PUBLIC OPINION ULTIMATELY WILL LET THE FACTS SHINE THROUGH THE FOG OF RHETORIC IN THE MEANTIME IT IS IMPORTANT TO UNDERSTAND WHY NAFTA CREATES SUCH FEAR IN A BROAD BASE OF THE AMERICAN PEOPLE THE FEAR IS ROOTED IN THE FACT THAT THE US IS GOING THROUGH A DIFFICULT TRANSITION FROM THE 1960S AND 1970S WHEN WORKER PRODUCTIVITY DECLINED SHARPLY TO A GROWTH IN PRODUCTIVITY AND OVERALL EFFICIENCY IN OUR WORK FORCE THAT STARTED TO OCCUR ABOUT 10 YEARS AGO THIS HAS RESULTED IN AN ENORMOUS SHIFT IN JOBS FROM UNSKILLED POSITIONS TO KNOWLEDGEINTENSIVE AND HIGHERPAYING JOBS THE FEAR REFLECTED IN OPPOSITION TO NAFTA RESULTS FROM THE DISLOCATIONS THAT THIS POSITIVE TREND CREATES THE REALITY IS THAT AMERICA HAS NEVER BEEN BETTER POSITIONED TO COMPETE NOR HAS IT EVER BEEN MORE PRODUCTIVE THE US IS ALMOST 30 MORE PRODUCTIVE THAN JAPAN AND GERMANY AND TWO TIMES MORE PRODUCTIVE THAN ALMOST ALL THE OTHER STRONG COMPETITORS OF CRITICAL IMPORTANCE THE RATE OF PRODUCTIVITY GROWTH IN MANUFACTURING GREW FASTER IN THE US THAN IN ANY OTHER NATION DURING THE 198590 PERIOD THERE ARE SOME POWERFUL TRENDS THAT WILL INEVITABLY MAKE AMERICAN WORKERS EVEN MORE EFFICIENT PRODUCERS COMPARED WITH BOTH THE CURRENT AMERICAN WORK FORCE AND THAT OF COMPETING COUNTRIES FIRST IS NATIONAL CHARACTER OURS IS A PLURALISTIC COUNTRY INDIVIDUALISM AND ENTREPRENEURSHIP ARE DEEPLY INGRAINED IN THE AMERICAN SPIRIT THIS AMERICAN CHARACTERISTIC OF INDIVIDUAL INVENTIVENESS IS INCREASINGLY A SOURCE OF COMPETITIVE ADVANTAGE BECAUSE TO A GROWING DEGREE VALUE IS BEING CREATED BY CONCEPTUAL INSTEAD OF PHYSICAL INPUT IN THE LANGUAGE OF ECONOMISTS THE CREATION OF VALUE IS BECOMING MORE KNOWLEDGEINTENSIVE FOR EXAMPLE THE PROPORTION OF AMERICAN WORKERS USING A COMPUTER AT WORK JUMPED FROM 1 IN 4 TO 1 IN 3 IN JUST THE FIVE YEARS FROM 1984 TO 1989 THE OTHER KEY INGREDIENT TO PRODUCTIVITY IS CAPITAL AND HERE AGAIN THE US IS IN THE LEAD THE US IS THE MOST CAPITALINTENSIVE WORKPLACE IN THE WORLD WE STILL HAVE THE LARGEST BASE OF INVESTED CAPITAL PER WORKER BY FAR ALTHOUGH WE ARE NOT MAINTAINING THIS ADVANTAGE AT THE PROPER RATE BY INVESTING AND SAVING AS MUCH AS WE SHOULD NEVERTHELESS AMERICANS PRODUCE 45000 OF GROSS DOMESTIC PRODUCT PER PERSON IN 1990 DOLLARS USING PURCHASINGPOWERPARITY EXCHANGE RATES COMPARED WITH 35000 FOR THE JAPANESE AND GERMANS FURTHERMORE WE ARE STAYING AHEAD DURING THE 1980S THE PERCENTAGE INCREASE IN OUTPUT PER PERSON EMPLOYED IN MANUFACTURING WAS EVEN FOR THE US AND JAPAN AT ABOUT 4 AND ABOUT DOUBLE THAT OF GERMANY GIVEN THIS EXTRAORDINARY RECORD AND PROGNOSIS IT IS DIFFICULT TO UNDERSTAND WHY AMERICANS ARE SO AFRAID OF FOREIGN COMPETITION PARTICULARLY FROM MEXICO THE ANSWER LIES NOT JUST IN THE DEMAGOGUERY OF THE PEROTBUCHANANGEPHARDT CROWD BUT ALSO IN THE FEARS THAT AMERICAN WORKERS EXPERIENCE AS JOBS BECOME MORE KNOWLEDGEINTENSIVE THESE FEARS ARE REAL AND WE SHOULD BE DOING A BETTER JOB IN DEALING WITH THEM IT WOULD BE AN ENORMOUS TRAGEDY WITH PROFOUNDLY DANGEROUS CONSEQUENCES IF WE ALLOWED SUCH FEARS NO MATTER HOW LEGITIMATE AND DEEPLY FELT TO COMBINE WITH POPULIST AND NATIONALISTIC RHETORIC TO SMOTHER THE LESSONS OF ECONOMIC HISTORYTHAT FREE TRADE CREATES GROWTH AND JOBS IF THIS OCCURS AND THE US TURNS AWAY FROM ITS HISTORICAL LEADERSHIP ROLE OF FREE TRADE BY DEFEATING NAFTA NOT ONLY WILL IT RESULT IN A REDUCTION IN THE STANDARD OF LIVING FOR ALL AMERICANS BUT IT WILL ALSO BE DAMAGING TO THE MORAL AND SOCIAL BASIS OF US WORLD LEADERSHIP MR DUVAL IS A NEW YORKBASED INVESTMENT BANKER HE SERVED ON THE WHITE HOUSE STAFFS OF PRESIDENTS NIXON AND FORD 9311050075 931105 BUSINESS BRIEF VIATEL PARTNERSHIP INCLUDING SOROS ACQUIRES A MINORITY HOLDING VIATEL A NEW YORK TELECOMMUNICATIONS COMPANY SAID AN INVESTMENT PARTNERSHIP INCLUDING GEORGE SOROS MADE A SIGNIFICANT EQUITY INVESTMENT FOR A MINORITY POSITION IN THE COMPANY THE AMOUNT OF THE INVESTMENT WASN'T DISCLOSED COMPANY OFFICIALS WEREN'T AVAILABLE TO COMMENT A SOROS GROUP SPOKESMAN SAID THE GROUP FEELS THE POTENTIAL FOR VIATEL'S SERVICES IS ENORMOUS AND THAT VIATEL HAS THE PERSONNEL TECHNOLOGY AND MARKETING STRENGTHS TO ACHIEVE SIGNIFICANT MARKET PENETRATION IN A WIDE VARIETY OF INTERNATIONAL MARKETS AT THE END OF SEPTEMBER VIATEL WHICH PROVIDES LONGDISTANCE TELECOMMUNICATIONS SERVICES TO BUSINESSES OUTSIDE THE US HAD MONTHLY SALES OF 21 MILLION FROM MORE THAN 9000 CUSTOMERS 9311050073 931105 BUSINESS BRIEF COLUMBIA GAS SYSTEM INC THIRDQUARTER LOSS SHRANK HIGHER RATES AIDED RESULTS COLUMBIA GAS SYSTEM INC SAID IT REDUCED ITS NET LOSS FOR THE THIRD QUARTER MAINLY DUE TO HIGHER RATES FOR ITS UTILITY BUSINESS AND IMPROVED REVENUE THROUGH A RESTRUCTURED RATE SYSTEM FOR ITS PIPELINE BUSINESS THE WILMINGTON DEL NATURALGAS COMPANY REPORTED A THIRDQUARTER NET LOSS OF 544 MILLION OR 107 A SHARE COMPARED WITH A YEAREARLIER LOSS OF 781 MILLION OR 154 A SHARE THE QUARTER'S RESULTS INCLUDED A 404 MILLION AFTERTAX CHARGE DUE TO A SETTLEMENT OF A 554 MILLION CLAIM AGAINST THE COMPANY BY THE INTERNAL REVENUE SERVICE THE SETTLEMENT ELIMINATES THE IRS CLAIM WHICH WAS FILED AS PART OF COLUMBIA GAS SYSTEM'S CHAPTER 11 BANKRUPTCY PROCEEDINGS THE QUARTER'S RESULTS ALSO REFLECTED OTHER ONETIME CHARGES INCLUDING A 13 MILLION RESERVE FOR ENVIRONMENTAL COSTS AN 88 MILLION CHARGE RELATED TO WORKFORCE REDUCTIONS AND A TOTAL OF 196 MILLION FOR INCREASED TAXES AND SEVERAL SMALLER UNUSUAL ITEMS 9311050072 931105 NATIONAL MEDICAL AGREES TO PLEAD GUILTY TO CHARGES TIED TO PSYCHIATRIC HOSPITAL BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID IT AGREED TO PLEAD GUILTY TO FEDERAL CRIMINAL CHARGES AND TO PAY 2 MILLION TO SETTLE GOVERNMENT CLAIMS INVOLVING ITS SHUTTERED PSYCHIATRIC HOSPITAL IN SAN ANTONIO IT WAS THE FIRST TIME NATIONAL MEDICAL HAS ADMITTED CRIMINAL WRONGDOING AT ANY OF ITS FACILITIES THE COMPANY SAID IT WOULD PLEAD GUILTY TO ONE COUNT OF MAKING A FALSE STATEMENT AND ONE COUNT OF MAKING A FALSE CLAIM AGAINST THE FEDERAL HEALTHCARE PROGRAM FOR MILITARY FAMILIES THE COMPANY SAID THE AGREEMENT FILED YESTERDAY IN US DISTRICT COURT IN SAN ANTONIO STILL REQUIRES COURT APPROVAL SAID DEMETRIUS BIVINS AN ASSISTANT US ATTORNEY HANDLING THE CASE PATIENT COMPLAINTS MORE THAN TWO YEARS AGO ABOUT PRACTICES AT THE COLONIAL HILLS HOSPITAL LED TO STATE HEARINGS THAT FOCUSED NATIONWIDE ATTENTION ON NATIONAL MEDICAL'S SPRAWLING PSYCHIATRIC OPERATIONS THOSE HEARINGS CULMINATED IN A 9 MILLION CIVIL SETTLEMENT LAST YEAR WITH THE TEXAS ATTORNEY GENERAL CHRISTI R SULZBACH SENIOR VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL FOR THE COMPANY SAID THE LATEST PACT SHUTS THE BOOK ON COLONIAL HILLS SHE ADDED THE HOSPITAL IS CLOSED THE BUILDING HAS BEEN SOLD AND THIS AGREEMENT REPRESENTS THE CONCLUSION OF OUR NEGOTIATIONS WITH THE US ATTORNEY'S OFFICE IN SAN ANTONIO THE AGREEMENT ISN'T DIRECTLY TIED TO THE FEDERAL GOVERNMENT'S CONTINUING INVESTIGATION OF POSSIBLE CRIMINAL MISCONDUCT AT THE COMPANY COORDINATED BY THE JUSTICE DEPARTMENT'S FRAUD DIVISION IN WASHINGTON THE ACCORD WILL HAVE VERY LITTLE IMPACT ON OUR OVERALL NEGOTIATIONS WITH THE JUSTICE DEPARTMENT MS SULZBACH ACKNOWLEDGED ADDING THAT WE BELIEVE THERE ARE CONTINUING INVESTIGATIONS IN OTHER FEDERAL DISTRICTS IN TEXAS ACCORDING TO THE CHARGES THE HOSPITAL WILLFULLY AND UNLAWFULLY FILED A 1989 CLAIM STATING THAT A PATIENT WAS TREATED BY A PHYSICIAN WITH A CHAMPUS PROVIDER NUMBER CHAMPUS IS THE CIVILIAN HEALTH AND MEDICAL PROGRAM FOR THE UNIFORMED SERVICES THE FEDERAL HEALTHCARE PROGRAM FOR MILITARY FAMILIES THE FALSE STATEMENT WAS MADE IN A 1990 LETTER SUBMITTED TO THE PROGRAM THE CHAMPUS PROGRAM IS INVOLVED BECAUSE A GOOD PART OF THE HOSPITAL'S PATIENTS WERE FROM MILITARY FAMILIES LIVING IN THE AREA MR BIVINS SAID OF THE TOTAL SETTLEMENT AMOUNT 1 MILLION IS FOR RESTITUTION AND 1 MILLION IS FOR FINES EQUAL TO 500000 FOR EACH OF THE TWO COUNTS THE COMPANY REGRETS THAT THESE VIOLATIONS OCCURRED AND WE BELIEVE OUR CURRENT PRACTICES WILL PREVENT SUCH INSTANCES IN THE FUTURE MS SULZBACH SAID NATIONAL MEDICAL UNDER NEW MANAGEMENT SINCE JUNE RECENTLY AGREED TO A SETTLEMENT OF TWO LAWSUITS BY SEVERAL INSURANCE COMPANIES THAT ALLEGED THE COMPANY FILED FRAUDULENT PSYCHIATRIC CLAIMS LATE LAST WEEK A JUDGE ORDERED A THIRD LAWSUIT BY MAJOR INSURERS INTO MEDIATION NATIONAL MEDICAL SHARES WERE QUOTED YESTERDAY AT 11 OFF 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE LATEST PACT WAS ANNOUNCED AFTER THE CLOSE OF TRADING 9311050071 931105 BUSINESS BRIEF ORANGE & ROCKLAND UTILITIES INC CONCERN WON'T FACE CHARGES IN BRIBERY CAMPAIGN PROBE THE DISTRICT ATTORNEY'S OFFICE OF ROCKLAND COUNTY NEW YORK SAID IT WOULDN'T FILE CHARGES AGAINST ORANGE & ROCKLAND UTILITIES INC IN AN INVESTIGATION OF BRIBERY AND ILLEGAL CAMPAIGN CONTRIBUTIONS INVOLVING A FORMER EXECUTIVE THE ELECTRIC UTILITY HAS BEEN CONDUCTING ITS OWN INVESTIGATION SINCE AUGUST UNDER THE AGREEMENT THE COMPANY WILL SET UP AN INSPECTOR GENERAL'S OFFICE AS A WATCHDOG FOR ITS ACTIVITIES THE DISTRICT ATTORNEY KENNETH GRIBETZ SAID THE COMPANY ALSO AGREED TO PAY FULL RESTITUTION TO CUSTOMERS IF FUND MISAPROPRIATION IS FOUND THE UTILITY ALSO IS BARRED FROM MAKING POLITICAL CONTRIBUTIONS FOR THE NEXT FIVE YEARS THE DISTRICT ATTORNEY'S OFFICE SAID IT IS CONTINUING ITS INVESTIGATION OF INDIVIDUALS STANFORD SILVERMAN PRESIDENT OF NEW YORK ADVERTISING COMPANY DEVOTION INC RECENTLY PLEADED GUILTY TO CHARGES THAT HE MADE ILLEGAL CAMPAIGN CONTRIBUTIONS UNDER THE DIRECTION OF LINDA WINIKOW THE FORMER VICE PRESIDENT FOR CORPORATE COMMUNICATIONS AT ORANGE & ROCKLAND WHO PLEADED GUILTY LAST MONTH TO GRAND LARCENY BRIBERECEIVING AND ILLEGAL CAMPAIGN CONTRIBUTIONS 9311050070 931104 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 9311050069 931105 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON PLANS A FURIOUS FINISH TO HIS PRONAFTA CAMPAIGN PEROT'S AGREEMENT TO DEBATE GORE WILL FOCUS PUBLIC ATTENTION CLINTON PLANS A RADIO ADDRESS TO FARM FAMILIES AND WILL TRAVEL EXTENSIVELY NEXT WEEK AIDES TO GOP REP SHERROD BROWN A NAFTA FOE SAY SECURITIES LOBBYISTS TELL HIM THE WHITE HOUSE IS ENCOURAGING BUSINESSES NOT TO BACK LAWMAKERS WHO OPPOSE THE TRADE PACT THE WHEELING AND DEALING INTENSIFIES SOME TOBACCOSTATE LAWMAKERS WITHHOLD NAFTA SUPPORT IN HOPES OF REDUCING THE HEALTHPLAN TAX HIT ON TOBACCO BUT ALL THE SPECIAL DEALS BEING CUT WITH LOBBIES MAY COMPLICATE WORLDTRADE TALKS ALREADY THERE ARE SOME DELAYS IN COUNTRIES COMING FORWARD WITH FINAL OFFERS AS THEY AWAIT THE FATE OF NAFTA SAYS JEFFREY SCHOTT OF THE INSTITUTE OF INTERNATIONAL ECONOMICS EVEN AS PEROT FIGHTS NAFTA HIS COMPANY CHASES BUSINESS IN MEXICO INCLUDING A CONTRACT WITH MEXICAN RAILROAD AUTHORITIES ALLIES FEAR THE US GOES TOO FAR IN COURTING NORTH KOREA ON NONPROLIFERATION INTERNATIONAL ATOMIC ENERGY AGENCY MONITORING DEVICES CAN NO LONGER TRACK PYONGYANG'S NUCLEAR PROGRAM THE SITUATION THE US HAS SAID WOULD TRIGGER SANCTIONS AIMED AT CUTTING OFF SUPPLIES OF OIL AND FOOD FROM CHINA AND DISCOURAGING EUROPEAN COMPANIES FROM EXPLORING TRADE TIES BUT THE US CONTINUES TO HOPE FOR A DIPLOMATIC SOLUTION ASPIN SAYS THE US IS NOT PREPARED TO SET ANY DEADLINES NOW THE ALLIES AND THE IAEA COMPLAIN THAT THE US STANCE CREATES A PRECEDENT FOR OTHER ROGUE NATIONS DISGRUNTLED IAEA OFFICIALS SAY THE US HAS EVEN TRIED TO CREATE A SPECIAL TRUNCATED INSPECTION PROCESS TO HELP PYONGYANG SAVE FACE THE WHITE HOUSE SEEKS TO DERAIL THE BALANCED BUDGET AMENDMENT THOUGH AIDES WORRY ABOUT SOUNDING SOFT ON SPENDING CLINTON PREPARES TO SEND A LETTER TO CAPITOL HILL PERHAPS AS EARLY AS TODAY WARNING THE AMENDMENT THREATENS THE GOVERNMENT'S ABILITY TO MANAGE THE ECONOMY BENTSEN WARNS IT WOULD KILL HEALTH REFORM THE WHITE HOUSE URGES LAWMAKERS WHO WANT TO DEMONSTRATE ANTIDEFICIT FERVOR TO APPROVE GORE'S MANAGEMENT REFORMS AND GIVE CLINTON ENHANCED RESCISSION POWERS SENATE LEADER MITCHELL PROMISES A VOTE LATER THIS MONTH AND BOTH SIDES SAY ILLINOIS DEMOCRAT SIMON THE CHIEF SENATE ADVOCATE IS CLOSE TO THE 67 VOTES HE NEEDS ELEVEN OF THE 14 NEW SENATORS BACK THE AMENDMENT ONLY WISCONSIN'S FEINGOLD AND MURRAY OF WASHINGTON OPPOSE IT CALIFORNIA'S BOXER VOTED AGAINST IT IN THE HOUSE LAST YEAR BUT WON'T SAY IF SHE WILL DO SO AGAIN SIMON CIRCULATES A 1992 ARTICLE SUPPORTING THE AMENDMENT SIGNED BY DAVID GERGEN NOW A TOP CLINTON AIDE HOUSE REPUBLICANS HOPE TO RIGHT THEIR AILING CAMPAIGN COMMITTEE WHICH THEY SAY IS MIRED IN DEBT AND HAVING DIFFICULTY RAISING MONEY THEY ATTRIBUTE THE PROBLEMS NOT TO CURRENT CHAIRMAN PAXON BUT TO A HANGOVER FROM THE VANDER JAGT REIGN AT AN EMERGENCY MEETING LATE LAST WEEK GOP LAWMAKERS WERE URGED BOTH TO CONTRIBUTE FROM THEIR OWN CAMPAIGN CHESTS AND TO PRESS LOBBYISTS FRIENDS TO PONY UP NERVOUS ARMY OFFICIALS KEEP A CLOSE EYE ON THE MORALE OF US TROOPS IN SOMALIA THEY FEAR THE RECENT DEFENSIVE POSTURE WHICH CONFINES TROOPS TO COMPOUNDS IS ERODING MORALE THEY ALSO WORRY THAT SOME AMERICAN TROOPS MAY STILL WANT TO AVENGE THE DEATHS OF 18 ARMY RANGERS LAST MONTH BANKS MOBILIZE TO PREVENT THE SENATE BANKING COMMITTEE FROM VOTING OUT A PROPOSAL TO GIVE THEM AUTHORITY TO BRANCH NATIONWIDE THE REASON THE MEASURE WOULD ALSO LIMIT THEIR ABILITY TO SELL INSURANCE BUT THE POWERFUL INSURANCE AGENTS ARE PUSHING HARD FOR THE BILL AND MAY PREVAIL THE ULTIMATE IN WHITE FLIGHT GIULIANI'S VICTORY IN NEW YORK'S MAYORAL RACE WAS PROVIDED BY VOTERS IN THE MOSTLY WHITE BOROUGH OF STATEN ISLAND WHO GAVE HIM A MARGIN OF NEARLY 90000 HE WON BY ONLY 44000 CITYWIDE AT THE SAME TIME THEY WERE VOTING TO SECEDE FROM THE CITY CAMPAIGN REFORM BENEFITS FROM THE ELECTION RESULTS BUT STILL FACES PROBLEMS LAWMAKERS TAKE VOTERS' CONTINUED ANGER AS A SIGN THE DEMAND FOR REFORM HASN'T ABATED BUT A NUMBER OF DEMOCRATS REMAIN NERVOUS THEIR CONCERN IS THAT THE PRINCIPAL REWARD FOR OBSERVING THE PROPOSED VOLUNTARY SPENDING CEILINGS VOUCHERS FOR CAMPAIGN ADS WOULDN'T BE AVAILABLE UNTIL THE GENERAL ELECTION BLACK CAUCUS MEMBERS WANT VOUCHERS AVAILABLE IN PRIMARIES WHERE THEY GENERALLY FACE THEIR STIFFEST COMPETITION AND LAWMAKERS FROM HIGHCOST NEW YORK COMPLAIN THAT EVEN SURVIVORS OF TOUGH PRIMARIES WOULD BE CRIPPLED AGAINST GENERAL ELECTION OPPONENTS WHO WON THEIR NOMINATIONS UNSCATHED ONE POSSIBLE COMPROMISE ALLOWING EMBATTLED NOMINEES TO OPT OUT OF THE VOLUNTARY SPENDING LIMITS AFTER THEIR PRIMARIES MINOR MEMOS AN ASPIN AIDE REFERS TO THE DOUBLEMURK SCENARIO PENTAGONESE FOR CONFRONTING TWO MRCS OR MAJOR REGIONAL CONTINGENCIES THAT IS TWO MEDIUMSIZE WARS AFTER THE DISCLOSURE OF WHITE HOUSE SALARIES CLINTON LOBBYIST SUSAN BROPHY 110000 LEAVES THIS NOTE FOR PRESS AIDE LORRAINE VOLES 60000 I CAME TO SAY HI AND SEE IF YOU NEEDED ANY MONEY THE AMERICAN ACADEMY OF PEDIATRICS' NEW PRESIDENT IS BETTY LOWE OF ARKANSAS WHO WAS CHELSEA CLINTON'S PEDIATRICIAN 9311050068 931105 BUSINESS BRIEF SUN SPORTSWEAR INC LICENSED CHARACTERS PROPEL CLOTHING CONCERN TO PROFIT SUN SPORTSWEAR INC SAID STRONG DEMAND FOR CLOTHING ITEMS BEARING LICENSED IDENTIFICATION SUCH AS LOONEY TUNES CHARACTERS RESULTED IN A THIRDQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS THE KENT WASH COMPANY POSTED NET INCOME OF 871000 OR 16 CENTS A SHARE COMPARED WITH A LOSS OF 15 MILLION OR 26 CENTS A SHARE IN THE 1992 PERIOD SALES MORE THAN DOUBLED TO 244 MILLION FROM 117 MILLION REFLECTING A SEVENFOLD INCREASE IN SALES OF LICENSED GOODS THE COMPANY ACQUIRED LICENSES FOR LOONEY TUNES JOINT LOONEY TUNES/MAJOR LEAGUE BASEBALL AND JOINT LOONEY TUNES/NATIONAL FOOTBALL LEAGUE CHARACTERS LATE IN THE 1992 FIRST HALF SO THEY WERE NOT A SUBSTANTIAL PART OF SUN'S PRODUCT LINE IN THE YEARAGO THIRD QUARTER SUN REPORTED NINEMONTH NET INCOME OF 24 MILLION OR 43 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 398000 OR SEVEN CENTS A SHARE SALES ROSE TO 786 MILLION FROM 503 MILLION 9311050067 931105 BLUELIGHT BLUES KMART'S DOWDY STORES GET A SNAZZY FACE LIFT BUT PROBLEMS LINGER CEO'S STRATEGY FOR DISCOUNT AND SPECIALTYSHOP MIX HAS TO BE REMADE ITSELF NO BAD NEWS FOR TEFLON' BOSS BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL MONTROSE OHIO JOSEPH ANTONINI GETS A HERO'S WELCOME AS HE RUSHES THROUGH THE AUTOMATIC DOORS OF THE YEAROLD SUPER KMART STORE HERE APPLAUSE ENGULFS THE KMART CORP CHAIRMAN AND FLASHBULBS POP AS CLERKS SNAP HIS PICTURE OTHERS FOLLOW A MANAGER'S CHANT GIMME AN S GIMME A U UNTIL THEY HAVE SPELLED OUT SUPER KMART FOR THE MOMENT ALL IS RIGHT FOR MR ANTONINI IN THE CUTTHROAT WORLD OF RETAILING THRONGS OF CUSTOMERS DISTRACTED ONLY BRIEFLY BY THE HUBBUB ARE BUSY SHOPPING THE WELLSTOCKED SHELVES OF THIS CAVERNOUS GROCERY AND GENERALMERCHANDISE STORE TOURING THE FOOD SECTION THE STOCKY EXECUTIVE SNATCHES CHEESE CUBES FROM A FREESAMPLE PLATTER AND ASKS NOBODY IN PARTICULAR HOW'S BUSINESS CLERKS FIRE BACK REAL FINE MR ANTONINI GLOWING WITH ENTHUSIASM HE REPLIES YOU HAVE TO BE DELIGHTED OUTSIDE THESE DOORS THOUGH THE WORLD HAS GROWN HARSH FOR THE NATION'S NO 2 RETAILER AND ITS 52YEAROLD BOSS MR ANTONINI'S 3 BILLION HALFCOMPLETED PROGRAM TO REJUVENATE KMART'S 2443 DISCOUNT STORES THROUGH RENOVATION OR RELOCATION ISN'T PAYING OFF YET ANALYSTS ESTIMATE THAT SALES PER SQUARE FOOT ACTUALLY DROPPED LAST YEAR THE MODERNIZED STORES DON'T HAVE THE KILLERCAPABILITY THAT WOULD MAKE THEM SURE WINNERS OF MARKET SHARE CONTENDS OPPENHEIMER & CO'S BERNARD SOSNICK AT SOME STORES POPULAR ITEMS CAN'T BE FOUND BECAUSE OF WEAK INVENTORY PLANNING AND RESEARCH SHOWS MANY SHOPPERS BELIEVE PRICES ARE LOWER AT OUTLETS OF ARCHRIVAL WALMART STORES INC MR ANTONINI'S PLAN TO MAKE KMART A COMBINATION DISCOUNT AND SPECIALTYRETAILING EMPIRE ALSO IS BEING LARGELY DISMANTLED AFTER YEARS OF ALLOWING HIS SEVEN SPECIALTY CHAINS FROM PACE MEMBERSHIP WAREHOUSE CLUBS TO BUILDERS SQUARE HOMEIMPROVEMENT STORES TO DRAIN MONEY AND ATTENTION FROM THE DISCOUNT STORES HE IS NOW TRYING TO SELL ALL OR PARTS OF SIX OF THE CHAINS EARNINGS HAVE BEEN FLAT THROUGHOUT MR ANTONINI'S FIVEYEAR TENURE LAST YEAR THE SPECIALTY UNITS MOSTLY SECONDTIER STORES IN THEIR CATEGORIES CONTRIBUTED 30 OF 377 BILLION IN SALES BUT ONLY 14 OF KMART'S 18 BILLION IN OPERATING PROFIT OVERALL NET INCOME WILL SLIP THIS YEAR THE COMPANY SAYS KMART STOCK WHICH CLOSED YESTERDAY AT 24375 IN NEW YORK STOCK EXCHANGE TRADING HAS STAYED IN THE LOW TO MID20S FOR 2 1/2 YEARS KMART'S DIFFICULTIES ARE HUMBLING FOR A COMPANY THAT ALL BUT INVENTED DISCOUNT RETAILING IN 1962 VARIETYSTORE OPERATOR SS KRESGE CO OPENED ITS FIRST KMART IN GARDEN CITY MICH FOR SHOPPERS SEEKING LOWER PRICES AMERICA LATCHED ON TO ITS BLUELIGHT SPECIALS SPONTANEOUS SALES MARKED BY A FLASHING BLUE LIGHT AND THE CALL ATTENTION KMART SHOPPERS KRESGE CHANGED ITS NAME TO KMART IN 1977 THE RETAILER OPENED ENOUGH STORES SOMETIMES HUNDREDS A YEAR TO UNSEAT INDUSTRY LEADER SEARS ROEBUCK & CO IN SALES IN 1990 THAT YEAR IT ALSO EMBARKED ON MR ANTONINI'S AMBITIOUS REMODELING PLAN WHICH IS SLATED TO BE COMPLETE BY 1996 KMART OFFICIALS WERE ECSTATIC BUT MEANWHILE THEY CONCEDE NOW THEY SCARCELY NOTICED HOW WALMART WAS CHURNING OUT MORESPACIOUS AND MODERN STORES WITH SOPHISTICATED DISTRIBUTION SYSTEMS MR ANTONINI HAD BEEN CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE FOR MORE THAN THREE YEARS WHEN WALMART SWIPED THE TOP RETAILING SPOT IN JANUARY 1991 LAST YEAR WITH 400 FEWER STORES WALMART STORE SALES WERE 50 HIGHER THAN KMART STORES' 265 BILLION COMPOUNDING KMART'S PROBLEMS IS A CHIEF EXECUTIVE WHO DOESN'T LIKE TO HEAR BAD NEWS COLLEAGUES DESCRIBE MR ANTONINI AS TEFLONCOATED COMPLAINTS AND UNSOLICITED SUGGESTIONS OFTEN SLIDE RIGHT OFF POSITIVE FEEDBACK MR ANTONINI MAINTAINS IS ONE REASON HE SPENDS SO MUCH TIME VISITING STORES AS CEO YOU HEAR WHAT'S WRONG ALL THE TIME YOU DON'T HEAR THE GOOD THINGS HE SAYS THE BEST EXPERIENCE OF MY DAY IS GOING TO THE STORES AN INDEFATIGABLE KMART BOOSTER WHO HAS SPENT HIS ENTIRE 29YEAR CAREER AT THE CHAIN MR ANTONINI DOESN'T LEAVE MANY OPENINGS FOR COMPLAINTS HE SEEMS TO RUN ALMOST A ONEMAN SHOW WITHOUT A CLEAR NO 2 OFFICIAL IN SIGHT HE RARELY BRINGS IN OUTSIDE HIRES WHOM HE DISPARAGES AS GYPSIES A SUPPORTIVE BOARD GIVES HIM FREE REIN COMPANY OFFICIALS SAY BOARD MEMBERS EITHER DIDN'T RETURN TELEPHONE CALLS OR COULDN'T BE REACHED BUT MR ANTONINI SAYS THEY ARE SATISFIED WITH KEEPING HIM IN ALL THREE TOP POSTS MR ANTONINI RECENTLY TOOK A REPORTER ON A DAYLONG TOUR TO ILLUSTRATE HOW HE ENVISIONS KMART'S FUTURE HIS FIRST STOP WAS AT A UTICA MICH STRIP MALL THAT EXEMPLIFIES IN HIS MIND WHAT COULD HAVE BEEN A NEWMODEL KMART DISCOUNT STORE SURROUNDED BY FOUR KMARTOWNED SPECIALTY STORES INCLUDING A PACE WAREHOUSE CLUB AND A BUILDERS SQUARE HOMEIMPROVEMENT OUTLET CALLED THE POWER CENTER BUT THIS VISION OF A MULTIFACETED FUTURE WILL NEED TWEAKING IN RECENT DAYS HE TENTATIVELY AGREED TO SELL PAYLESS DRUGSTORES TO LEONARD GREEN & PARTNERS FOR A PRICE PEOPLE CLOSE TO THE SITUATION SAY IS 1 BILLION AND TO SELL 91 OF THE 113 MONEYLOSING PACE CLUBS TO WALMART FOR 300 MILLION HE IS ALSO CONSIDERING SELLING 25 STAKES IN THE BUILDERS SQUARE SPORTS AUTHORITY SPORTING GOODS OFFICEMAX OFFICE SUPPLY AND BORDERS BOOK CHAINS THOSE MOVES ARE LONG OVERDUE IN THE EYES OF WALL STREET ANALYSTS MANY OF WHOM HAVE CRITICIZED KMART FOR BUYING THE SPECIALTY BUSINESSES EVER SINCE IT STARTED DOING SO IN 1984 THE SPECIALTY STORES TOOK KMART'S EYE OFF OF ITS CORE DISCOUNT CHAIN THE ANALYSTS COMPLAIN THEY HAVEN'T LIVED UP TO EXPECTATIONS AND BECAUSE KMART'S EARNINGS HAVE BEEN LOWER THAN HOPED IT NOW NEEDS CASH TO COVER ITS DIVIDEND AND FINANCE THE RENOVATION PROGRAM WITH ABOUT 15 BILLION IN CASH FLOW BASED ON ITS CURRENT PERFORMANCE KMART WOULD HAVE FINISHED THE YEAR 200 MILLION SHORT OF COVERING ITS DIVIDEND WITHOUT THE PAYLESS SALE FIGURES BARRY BRYANT AN ANALYST WITH LADENBURG THALMANN & CO ON THIS TOUR OF THE POWER CENTER HOWEVER UNPLEASANT NEWS ISN'T ON MR ANTONINI'S AGENDA HE BASKS IN THE WIDE GLEAMING AISLES OF THE KMART ANCHOR STORE INSPECTING THE WELLLABELED DEPARTMENTS HE TAKES FROM HIS PORTFOLIO A COLORFUL 30 TIE PURCHASED FROM A MORE UPSCALE RETAILER TO COMPARE WITH THE SIMILAR 999 KMART VERSION HE'S WEARING SEE ALL SILK FOR A LOWER PRICE HE SAYS THAT'S WHAT KMART IS DOING EVEN IN THIS PROTECTED ENVIRONMENT HOWEVER UNCOMFORTABLE MOMENTS INTRUDE AT THE JEWELRY COUNTER A CLERK IS ALREADY SMILING AND NODDING WHEN MR ANTONINI APPROACHES THE GOLD COLLECTION AND ASKS HOW ARE THESE DOING SHE ANSWERS DOING REAL WELL EAGERLY MR ANTONINI ASKS THE CLERK WHO STARTED HER JOB JUST THREE DAYS EARLIER SPECIFICALLY WHAT HAS SOLD OH SHE REPLIES ACTUALLY NONE OF THESE YET A CHECKOUT CLERK THEN TELLS MR ANTONINI SHE IS HAVING PROBLEMS WITH THE SCANNER THE COMPUTER SYSTEM THAT RINGS UP PURCHASES AND TRACKS WHICH ITEMS KMART NEEDS TO REPLACE SOMETIMES SHE SAYS PRODUCTS AREN'T FILED ELECTRONICALLY SO THE CASH REGISTER HAS NO RECORD OF THEM INDEED KMART HAS BEEN SLOW TO MASTER ITS COMPUTERIZED INVENTORY SYSTEMS WHILE WALMART USED SUCH SYSTEMS THROUGHOUT ITS EXPANSION TO QUICKLY TRACK AND REPLACE STOCK KMART UNTIL RECENTLY LET INDIVIDUAL STORES HANDLE THEIR OWN REPLENISHING IT IS STILL FUMBLING CONSUMER JANIE LIMEBURG OF NAPERVILLE ILL ON A TRIP TO ANOTHER RECENTLY RENOVATED KMART TO RETURN SOME SOCKS SAYS SHE WOULD HAVE BOUGHT UNDERWEAR FOR HER TWO BOYS BUT NEITHER SIZE WAS IN STOCK THIS HAPPENS ALL THE TIME SAYS MS LIMEBURG WHO PREFERS THE WALMART DOWN THE STREET FINISHED WITH THE TOUR MR ANTONINI SITS DOWN IN THE STORE'S LITTLE CAESAR'S RESTAURANT WITH SOME FRENCH TOAST AND A STACK OF KTRENDS RESEARCH STATISTICS TO ARGUE THAT HIS RENEWAL PLAN IS WORKING AMONG OTHER THINGS HE NOTES THAT THE NEWLOOK STORES' SALES ROSE 6 LAST YEAR WHILE SALES AT THE OLD STORES SLIPPED 1 BUT ANALYST DAVID PONEMAN OF SANFORD C BERNSTEIN & CO ESTIMATES THAT THE SALES PER SQUARE FOOT AT THE MODERNIZED STORES ACTUALLY SLIPPED LAST YEAR CAUSING KMART TO LOSE TWO SHARE POINTS IN THE DISCOUNT MARKET WHILE WALMART GAINED FOUR A KMART SPOKESMAN SAYS THAT THE CHAIN DOESN'T TRACK MARKET SHARE BUT THAT A SLIGHT SHARE LOSS WOULDN'T BE SURPRISING BECAUSE COMPETITORS ARE GROWING SO QUICKLY MICHAEL WELLMAN KMART'S VICE PRESIDENT OF MARKETING CONCEDES THAT THERE'S NO DOUBT '92 SALES WEREN'T AS GREAT AS WE THOUGHT THEY'D BE WE UNDERESTIMATED THE CHALLENGE AHEAD OF US BUT MR ANTONINI WHILE CALLING 1992 SALES VERY SLIGHTLY UNDER PLAN BRISTLES AT THE NAYSAYERS SOMETIMES ANALYSTS EXPECT PROGRAMS TO BE TOO STRONG TOO GOOD TOO QUICKLY IN MR ANTONINI'S FIRST FOUR FULL YEARS AS CHIEF EXECUTIVE FROM 1988 TO 1992 SALES AND OPERATING INCOME ROSE ONLY A RESPECTIVE 3 AND 2 AT KMART DISCOUNT STORES OPEN AT LEAST A YEAR WHILE WALMART'S SAMESTORE RESULTS SOARED 24 AND 22 CONSUMER PERCEPTION HAS FARED EVEN WORSE ACCORDING TO A RECENT STUDY OF ATLANTA DISCOUNTERS CONDUCTED BY BABSON COLLEGE AND FUNDED IN PART BY KMART ONLY 14 OF CONSUMERS THINK KMART HAS THE LOWEST PRICES DOWN FROM ABOUT 50 WHO THOUGHT SO IN 1984 THREE OUT OF FOUR CONSUMERS PREFERRED WALMART'S PRICES THIS YEAR UP FROM 3 IN 1984 WALMART WON HANDS DOWN IN PREFERENCE FOR EVERYTHING FROM SHOPPING ENVIRONMENT TO MERCHANDISE SELECTION STILL MR ANTONINI THINKS CONSULTANTS AND ANALYSTS HAVE BEEN TOO HARD ON HIM WHEN CONSULTANT MARIA KRIEGER AFTER A YEARLONG STUDY PRESENTED TO ABOUT 30 KMART MANAGERS SOME UNFLATTERING COMMENTS CONSUMERS HAD MADE ABOUT THE MODERNIZED STORES THE CEO REPEATEDLY INTERRUPTED TO QUESTION HER METHODS THE PRESENTATION LASTED MORE THAN TWICE AS LONG AS THE ONE HOUR ALLOTTED SHE'S ALREADY ANSWERED THAT SOME EMBARRASSED MANAGERS WOULD MUMBLE SHIFTING UNCOMFORTABLY IN THEIR CHAIRS IN AN INTERVIEW LATER MR ANTONINI SAID THAT AS CEO IT IS HIS JOB TO CHALLENGE EVERYTHING MS KRIEGER IS ONE OF SEVERAL CONSULTANTS THE CHAIRMAN HAS SOUGHT FOR OUTSIDE ADVICE ONLY TO FLAY OR FIRE THEM THEY HAVE RECOMMENDED STEPS RANGING FROM REPLACING THE HARSH STRIP FLUORESCENT LIGHTS STILL IN PLACE TO SHEDDING MANAGEMENT LAYERS TO TARGETING A NARROWER CONSUMER MARKET MR ANTONINI SAYS THAT YOU HAVE TO BE CAREFUL NOT TO OVERUSE CONSULTANTS BECAUSE THEY JUST ASK EVERYONE THAT WORKS FOR YOU WHAT'S WRONG AND THEN REPEAT IT ALL BACK TO YOU HE IS ESPECIALLY DEFENSIVE ABOUT KMART'S DECLASSE IMAGE AS A POLYESTER PALACE HE HAS GAMELY TRIED TO IMPROVE THAT IMAGEUPGRADING KMART'S APPAREL FOR EXAMPLE AND LIKE RIVALS JC PENNEY AND SEARS ADVERTISING ITS CLOTHING LINE TO WORKING WOMEN MR ANTONINI'S IMPASSIONED EFFORTS ALONG THESE LINES HELPED ASSURE HIS ASCENSION TO THE TOP STROLLING ALONG THE SIDEWALK OUTSIDE THE POWER CENTER IN MICHIGAN HE TELLS OF HIS START AT KMART IN 1964 AS AN ASSISTANT STORE MANAGER STRAIGHT FROM WEST VIRGINIA UNIVERSITY AN ADMITTED CLOTHES HORSE SINCE THE AGE OF SIX HIS NATTY SUIT ON A RECENT DAY IS ACCESSORIZED WITH KMART TIE SOCKS AND HE SAYS BOXER SHORTS HE WAS NAMED PRESIDENT OF KMART'S APPAREL DIVISION IN 1984 THERE HE MADE A NAME FOR HIMSELF BY LOBBYING TO INTRODUCE A MORE FASHIONABLE LINE OF WOMEN'S CLOTHING USING THE ACTRESS JACLYN SMITH KMART DIRECTORS COMPANY OFFICIALS SAY THOUGHT THEY HAD FOUND IN MR ANTONINI A VISIONARY YET THE JURY IS STILL OUT ON HIS EFFORTS YESTERDAY IN REPORTING A SOFT 14 SAMESTORE SALES INCREASE FOR OCTOBER MR ANTONINI SAID WARM WEATHER HALTED SOME MOMENTUM IN CLOTHING SALES ASKED ABOUT BEING A VISIONARY HE SAYS I TRY NOT TO COME UP WITH TOO MANY IDEAS AT ONCE CREATIVITY CAN COME IN EVERY MINUTE AND I FIGHT IT HE SAYS HE ADMIRES LEE IACOCCA THE FORMER CHRYSLER CORP CHAIRMAN WITH WHOM HE IDENTIFIES BUSINESSWISE WE'RE ALIKE SAYS MR ANTONINI AN ITALIANAMERICAN WITH A BLOWNBACK HEAD OF HAIR AND BLUE EYES THAT DISAPPEAR WHEN HE GRINS ONE OF HIS PROUDEST MOMENTS BEING NAMED TO CHRYSLER'S BOARD LIKE MR IACOCCA MR ANTONINI STARS IN HIS COMPANY'S TV COMMERCIALS HIS PHOTO ALSO APPEARS IN EVERY KMART STORE WITH THE PROMISE IT'S OUR JOB TO MAKE SURE NO ONE HAS A LOWER PRICE THAN KMART HE SAYS HE CAN'T GO INCOGNITO TO HIS STORES ANYMORE IF THAT IS SO MOST SHOPPERS ON THIS DAYLONG TOUR KEEP A RESPECTABLE DISTANCE EXCEPT FOR AN ELVIS LOOKALIKE WHO CROONS HEEEY MR KMART AS THE CHAIRMAN STRIDES BY HAPPENS ALL THE TIME MR ANTONINI EXPLAINS ON THE WAY TO THE PONTIAC MICH AIRPORT HOME OF KMART'S FIVE AZURE PLANES A VIRTUAL BLUELIGHT AIR FORCE MR ANTONINI SWIFTLY CRUISES BY AN OLDMODEL KMART STORE THAT LIKE NEARLY HALF OF THE DISCOUNT STORES STILL HAS A CHEESY 1970S LOOK DID YOU SEE THAT OLD UGLYLOOKING THING HE ASKS SHUDDERING AHHHH I CAN'T STAND IT LIKE THAT OUTSIDE ONE SUCH STORE IN AUSTIN TEXAS RECENTLY THE THREE SODA MACHINES WERE OUT OF ORDER INSIDE PLASTIC CASINGS FOR CLEARANCE SIGNS WERE STAINED A CART OVERFLOWING WITH RANDOM ITEMS LIKE PLASTIC FLOWERS AND LOOSE PANTYHOSE CLUTTERED A NARROW AISLE SHOPPER DEBBIE THOMAS MIFFED BECAUSE THE STORE WAS OUT OF MARLBORO LIGHTS LEFT MUTTERING IT'S JUNKY AND OUTDATED EVEN SOME RECENTLY RENOVATED STORES NEED UPDATING ALREADY IN AN OMAHA NEB STORE REDONE JUST OVER A YEAR AGO THE RED STRIPES LINING FLOOR AISLES ARE PEELING A NOSMOKING SIGN IS HELD TO THE WALL WITH TAPE AN 11YEAROLD BOY CAN BARELY WALK BETWEEN DISPLAY RACKS ONE FILLED WITH DORITOS AND THE OTHER WITH BATTERIES MR ANTONINI SAYS STORE MANAGERS OVERSEE DAYTODAY UPKEEP WALMART WHICH SPENT 3 BILLION ON ITS STORES IN 1992 COMPARED WITH KMART'S 1 BILLION CAN AFFORD TO SPEND ALMOST 50 MORE PER SQUARE FOOT THAN KMART BECAUSE ITS PROFIT MARGINS ARE SO RICH SAYS MR PONEMAN OF SANFORD C BERNSTEIN THAT ALLOWS WALMART TO HAVE HIGHERQUALITY DISPLAYS MORE CLERKS FASTER CHECKOUT AND BETTER PRICES AND INVENTORIES SOME STORES I LEAVE I WANT TO CRY MR ANTONINI ADMITS AFTER LANDING IN MONTROSE EN ROUTE TO THE SUPER KMART STORE IT ISN'T ALL ROSY THAT MAKES STORES LIKE THIS SUPER KMART THAT MUCH MORE FUN FOR MR ANTONINI TO VISIT WE SEE HIM LOTS OF TIMES SAYS A PEPPY HUMANRESOURCES EMPLOYEE 9311050065 931105 INTERNATIONAL BRIEF BOOTS CO FISCAL 1STHALF PRETAX PROFIT DECLINED 62 DUE TO CHARGE BOOTS CO OF THE UK REPORTED THAT ITS PRETAX PROFIT FOR THE FISCAL FIRST HALF FELL BY 62 THE RESULTS FOR THE PERIOD ENDED SEPT 30 WERE DEPRESSED BY A 35 MILLION 519 MILLION CHARGE RELATING TO MANOPLAX ITS CONGESTIVEHEARTFAILURE TREATMENT THE RETAIL AND PHARMACEUTICAL CONCERN'S PRETAX PROFIT FELL TO 1746 MILLION FROM 1862 MILLION BELOW ANALYSTS' FORECASTS OF 200 MILLION SALES ROSE 74 TO 199 BILLION FROM 185 BILLION BOOTS CHAIRMAN SIR CHRISTOPHER BENSON SAID THE WITHDRAWAL OF MANOPLAX HAD LED TO A STRATEGIC REVIEW OF ITS BOOTS PHARMACEUTICALS UNIT AND THAT DOITALL ITS JOINT VENTURE WITH WH SMITH GROUP PLC IS BEING RESTRUCTURED BOOTS SAID IN JULY IT WAS VOLUNTARILY WITHDRAWING MANOPLAX FROM THE MARKET AFTER A STUDY REVEALED PROBLEMS WITH THE DRUG WHEN USED IN LOW DOSES 9311050064 931105 BUSINESS BRIEF STONE CONTAINER CORP COMPANY TO SELL ITS STAKE IN MEXICAN FIRM TO CUT DEBT STONE CONTAINER CORP AGREED TO SELL ITS 49 STAKE IN EMPAQUES DE CARTON TITAN SA ONE OF MEXICO'S LARGEST MAKERS OF CORRUGATED CONTAINERS AND MOLDED CELLULOSE PRODUCTS ALTHOUGH THE BUYER AND TERMS WEREN'T DISCLOSED THE CHICAGO PAPER AND PAPERPACKAGING COMPANY SAID THE TRANSACTION WHICH IS EXPECTED TO BE COMPLETED BY YEAR END WOULD BE PRINCIPALLY FOR CASH PROCEEDS WILL BE USED TO REDUCE BANK DEBT THE COMPANY SAID STONE CONTAINER HAS BEEN TRYING TO SHORE UP ITS DEBTLADENED BALANCE SHEET AND HAS SAID IT WOULD SELL CERTAIN ASSETS IN AUGUST THE COMPANY ANNOUNCED PLANS FOR AN INITIAL PUBLIC OFFERING IN CANADA OF A SIGNIFICANT MINORITY STAKE IN ITS NEWSPRINT OPERATIONS 9311050063 931105 PARTNERSHIP WOES FACING MORE BROKERS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC ISN'T THE ONLY BIG WALL STREET FIRM SADDLED WITH LIMITEDPARTNERSHIP WOES MERRILL LYNCH & CO AND PAINEWEBBER GROUP INC CURRENTLY ARE BATTLING LAWSUITS AND ARBITRATION CASES BROUGHT BY INVESTORS WHO SAY THEY WERE MISLED INTO BUYING PARTNERSHIPS THAT LATER SOURED MERRILL THE NATION'S BIGGEST BROKERAGE FIRM IS OFFERING TO SETTLE A CLASSACTION SUIT FILED IN A CHICAGO FEDERAL COURT BY 16500 INVESTORS IN ARVIDA/JMB PARTNERS LPII A 234 MILLION PARTNERSHIP THAT BOUGHT RAW LAND TO DEVELOP HOMES PAINEWEBBER RECENTLY SETTLED SEVERAL ARBITRATION CASES ALLEGING AMONG OTHER THINGS THAT PAINEWEBBER GEODYNE ENERGY PARTNERSHIPS TOTALING 570 MILLION IN ASSETS USED BORROWED MONEY TO FUND DISTRIBUTIONS TO INVESTORS ACCORDING TO THOMAS R GRADY A NAPLES FLA LAWYER WHO FILED THE CLAIMS PAINEWEBBER SETTLED THE CASES WHICH CONTAINED CONFIDENTIALITY CLAUSES WITHOUT ADMITTING OR DENYING GUILT MAKE NO MISTAKE PRUDENTIAL SECURITIES STILL HAS THE BIGGEST PARTNERSHIP HEADACHES THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT SOLD THE MOST PARTNERSHIPS IN THE 1980S AND UNLIKE OTHER BROKERAGE FIRMS PRUDENTIAL FACES FEDERAL AND STATE ALLEGATIONS OF WIDESPREAD FRAUD AND CRIMINAL INVESTIGATIONS OF POSSIBLE KICKBACKS BETWEEN FORMER EXECUTIVES AND PARTNERSSORS BUT SEVERAL OTHER BIG WALL STREET FIRMS WITH SIGNIFICANT PARTNERSHIP SALES SO FAR HAVE ESCAPED THE SPOTLIGHT IN 1988 AT THE HEIGHT OF THE PARTNERSHIP RAGE FOR INSTANCE MERRILL HAD 175 BILLION OF PUBLIC PARTNERSHIP ASSETS UNDER MANAGEMENT PLUS PARTNERSHIP DEALS IT MARKETED FOR OTHER SPONSORS SAYS NANCY MAHON EDITOR OF THE STANGER REPORT A SHREWSBURY NJ NEWSLETTER SHEARSON LEHMAN HUTTON INC NOW SMITH BARNEY SHEARSON INC AND DEAN WITTER REYNOLDS INC NOW DEAN WITTER DISCOVER & CO EACH HAD 11 BILLION OF PARTNERSHIP ASSETS UNDER MANAGEMENT IN 1988 WHILE PAINEWEBBER HAD 758 MILLION UNDER MANAGEMENT STANGER SAYS NOW THESE FIRMS ARE LIKELY TO FACE A GROWING DOCKET OF PARTNERSHIP CASES SOME SECURITIES LAWYERS SAY THAT'S PARTICULARLY TRUE IN THE WAKE OF LAST MONTH'S PRUDENTIAL REGULATORY SETTLEMENT IN WHICH THE FIRM AGREED TO PAY AT LEAST 371 MILLION TO SETTLE CLAIMS THAT INVESTORS WERE MISLED INTO BUYING PARTNERSHIPS IN MANY WAYS IT'S THE SAME STORY WITH ALL BIG BROKERAGE FIRMS PITCHING PARTNERSHIPS SAYS MICHAEL E CRIDEN A MIAMI LAWYER REPRESENTING CLIENTS WITH PARTNERSHIP CLAIMS AGAINST MERRILL BIG PITCHES BIG MEETINGS BIG PRESSURE TO SELL THIS INVESTMENT AND BIG LOSSES IN A NOTICE TO INVESTORS THE ARVIDA REALESTATE PARTNERSHIP SOLD TO MERRILL INVESTORS REPORTED A 735 MILLION LOSS IN 1992 ABOUT 50 MILLION OF THE LOSS THE NOTICE SAID STEMMED FROM REDUCTIONS IN THE INVENTORY CARRYING VALUE OF CERTAIN PARTNERSHIP ASSETS PRIMARILY A BIG RESIDENTIAL PROPERTY PLANNED TO BE BUILT IN ORANGE COUNTY CALIF JUST BEFORE THE CALIFORNIA REALESTATE CRASH THAT PLANNED HOUSING DEVELOPMENT CALLED TALEGA NEVER AMOUNTED TO MORE THAN A FEW ROADS NO HOMES WERE EVER BUILT INVESTORS HAVE RECEIVED JUST 20 IN DISTRIBUTIONS FOR EACH 1000 UNIT SINCE THE PARTNERSHIP WAS LAUNCHED IN LATE 1989 IT APPEARS UNLIKELY THAT THE LIMITED PARTNERS WILL RECOVER MUCH IF ANY OF THEIR CAPITAL INVESTMENT IN THE PARTNERSHIP SAID THE INVESTOR NOTICE DATED APRIL 30 1993 IN THE COMPLAINT INVESTORS ALLEGED THAT BECAUSE OF THE LURE OF OVER 20 MILLION IN SELLING COMMISSIONS MERRILL LYNCH IGNORED THE COLLAPSING REAL ESTATE MARKET AND SIGNED ON TO BE THE SELLING AGENT FOR THE PARTNERSHIP MERRILL ALSO TOUTED THE PARTNERSHIP'S PROSPECTS AND BOASTED THAT THE FIRM HAD PERFORMED EXTENSIVE DUE DILIGENCE AND THOROUGHLY INVESTIGATED THE PARTNERSHIP BEFORE RECOMMENDING IT THE SUIT SAYS IN OFFERING MATERIALS MERRILL TOLD INVESTORS THAT THEY COULD EXPECT CASH DISTRIBUTIONS AMOUNTING TO 12 IN EACH OF THE FIRST THREE YEARS THE SUIT SAYS MERRILL DENIES IT MISLED INVESTORS DESPITE THE PARTNERSHIP'S LOSSES MERRILL AND JMB REALTY CORP WHOSE ARVIDA CO AFFILIATE WAS THE DEVELOPER OF THE PROPERTIES ARE OFFERING INVESTORS A SETTLEMENT TOTALING ONLY 6 MILLION IN CASH PLUS THE DEFERRAL OF SOME MANAGEMENT FEES THAT GIVES THE DEAL A CURRENT VALUE OF ABOUT 10 MILLION THIS ALLOWS THE CHANCE OF RESTRUCTURING AND KEEPING THE PARTNERSHIP ALIVE SAYS RONALD SCHY A CHICAGO LAWYER WHO FILED THE ARVIDA CASE IT'S THE BEST CHANCE FOR INVESTORS IF THEY CAN HOLD ONTO THIS LAND A MERRILL SPOKESMAN SAYS WE FEEL THIS IS A FAIR SETTLEMENT OF A WEAK CLAIM THE FIRM DECIDED TO SETTLE TO AVOID THE UNCERTAINTY AND EXPENSE OF LENGTHY LITIGATION THE SPOKESMAN SAID GARY NICKELE EXECUTIVE VICE PRESIDENT AT JMB REALTY SAID FROM OUR PERSPECTIVE IT'S A LOT OF MONEY BECAUSE WE BELIEVE THERE WAS NO LIABILITY BUT SOME PLAINTIFF LAWYERS ALREADY ARE CRYING FOUL NOTING THAT THERE'S NO ASSURANCE THAT THE VALUE OF THE LAND REMAINING IN THE PARTNERSHIP WILL RISE AND INVESTORS HAVE LESS THAN A MONTH TO DECIDE WHETHER TO OPT OUT IT'S RIDICULOUS TO TAKE TWO CENTS ON THE DOLLAR AND BE FOREVER BARRED FROM FUTURE LEGAL ACTION SAYS MR CRIDEN THE MIAMI LAWYER WHO REPRESENTS ABOUT 150 INVESTORS WITH ARVIDA CLAIMS MEANWHILE MERRILL FACES OTHER CLAIMS INVOLVING SIMILAR ASSERTIONS IN THE 400 MILLION ARVIDA/JMB PARTNERS LPI PARTNERSHIP THERE HAVE BEEN MASS SOLICITATIONS BY PLAINTIFF ATTORNEYS THAT HAVE PROMPTED A NUMBER OF SUITS REGARDING ARVIDAI THAT WE ARE NOW IN THE PROCESS OF SEEKING TO HAVE DISMISSED A MERRILL SPOKESMAN SAID IN THE PAINEWEBBER MATTERS VARIOUS GEODYNE OIL AND GAS PROPERTIES BORROWED FROM EACH OTHER PAID OUT DISTRIBUTIONS NOT REPRESENTED AS INCOME AND WERE MARKETED TO ELDERLY RETIREES AS SECURE INVESTMENTS ALLEGES MR GRADY THE NAPLES FLA LAWYER REPRESENTING CLIENTS WITH CLAIMS AGAINST PAINEWEBBER A PAINEWEBBER SPOKESMAN SAID THE ALLEGATIONS ARE WRONG HE DECLINED TO ELABORATE IN MARKETING MATERIAL GIVEN PAINEWEBBER BROKERS AT A COLORADO RETREAT IN JULY 1991 FOR INSTANCE BROKERS WERE URGED TO SELL OIL AND GAS PARTNERSHIPS AS LIFE INSURANCE FOR INVESTORS' BROKERAGE HOLDINGS THE GEODYNE PARTNERSHIPS WERE SOLD BETWEEN 1985 AND 1992 OIL AND GAS REDUCES YOUR PORTFOLIO'S VOLATILITY THE PAINEWEBBER MARKETING MATERIAL SAID PARTNERSHIPS IN GENERAL WERE HURT BY 1986 TAXLAW CHANGES AND SEVERE DOWNTURNS IN THE ENERGY AND REALESTATE INDUSTRIES 9311050062 931105 TECHNOLOGY & HEALTH DISCIPLINARY DATA SHOULD STAY SECRET DOCTOR GROUP SAYS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL IN A CASE PITTING PATIENTS' RIGHTS AGAINST DOCTORS' PRIVACY THE CALIFORNIA MEDICAL ASSOCIATION HAS SUED TO BLOCK STATE OFFICIALS FROM GIVING OUT INFORMATION ABOUT PHYSICIANS' DISCIPLINARY RECORDS THE LAWSUIT AIMS TO STOP THE STATE'S MEDICAL BOARD WHICH LICENSES DOCTORS FROM IMPLEMENTING NEW RULES THAT ALLOW PATIENTS TO FIND OUT WHETHER THE BOARD HAS RECOMMENDED THAT A DOCTOR BE FORMALLY CHARGED WITH DISCIPLINARY VIOLATIONS THE RULES ALSO ALLOW PATIENTS TO BE TOLD OF ANY MALPRACTICE JUDGMENTS OVER 30000 OR ANY FELONY CONVICTIONS AGAINST A DOCTOR IN ITS COMPLAINT THE ASSOCIATION CONTENDS THAT THE LAW VIOLATES DOCTORS' CONSTITUTIONAL RIGHTS BY DISCLOSING ALLEGATIONS AGAINST A DOCTOR BEFORE A FORMAL DISCIPLINARY CHARGE HAS BEEN MADE THE MEDICAL BOARD INVESTIGATES COMPLAINTS AGAINST DOCTORS AND IF APPROPRIATE CAN RECOMMEND THAT THE STATE ATTORNEY GENERAL'S OFFICE TAKE FURTHER ACTION SUCH AS INVESTIGATING CASES ON ITS OWN OR ISSUING FORMAL CHARGES THE CALIFORNIA MEDICAL ASSOCIATION IS AN ARM OF THE AMERICAN MEDICAL ASSOCIATION THE BIGGEST US DOCTORS GROUP PHYSICIANS WHOSE CASES ARE REJECTED BY THE ATTORNEY GENERAL'S OFFICE FOR FILING OF A FORMAL ACCUSATION WILL BE IRREPARABLY HARMED BECAUSE OF THE LOSS OF EXISTING AND PROSPECTIVE PATIENTS INCURRED AS A RESULT OF THE MEDICAL BOARD'S DISCLOSURE THE ASSOCIATION'S COMPLAINT SAYS BUT STATE LICENSING OFFICIALS CONTEND THE BOARD DOESN'T FORWARD CASES TO THE ATTORNEY GENERAL'S OFFICE UNLESS THERE IS GOOD REASON TO BELIEVE A VIOLATION HAS OCCURRED INDEED THE ATTORNEY GENERAL'S OFFICE FILES FORMAL CHARGES IN 98 OF ALL CASES REFERRED TO IT MORE THAN 90 OF THOSE CHARGES LEAD TO DISCIPLINARY ACTION AGAINST A PHYSICIAN THE MEDICAL BOARD SAID WE'RE TRYING TO HELP CONSUMERS MAKE INFORMED CHOICES SAYS CANDIS COHEN A SPOKESWOMAN FOR THE BOARD WE BELIEVE THAT ANY PHYSICIANS PRIVACY RIGHT IS OUTWEIGHED BY THE PUBLIC'S RIGHT TO KNOW THE NEW MEDICAL BOARD RULES WHICH TOOK EFFECT OCT 1 PUT CALIFORNIA IN THE FOREFRONT OF EFFORTS BY CONSUMER GROUPS AND GOVERNMENT OFFICIALS TO MAKE MORE INFORMATION AVAILABLE TO PATIENTS THE ORIGINAL DRAFT OF PRESIDENT CLINTON'S HEALTH PLAN HAD CALLED FOR NEW RULES GRANTING PUBLIC ACCESS TO INFORMATION IN THE SOCALLED NATIONAL PRACTITIONER DATA BANK WHICH RECORDS JURY VERDICTS AND SETTLEMENTS IN CASES AGAINST DOCTORS AS WELL AS STATE DISCIPLINARY VIOLATIONS AND REVOCATIONS OF HOSPITAL PRIVILEGES THE DATA CURRENTLY IS AVAILABLE ONLY TO PHYSICIANS AND HEALTHCARE ORGANIZATIONS SUCH AS HOSPITALS AND LICENSING BOARDS UNDER PRESSURE FROM THE MEDICAL AND INSURANCE LOBBIES THE PRESIDENT OMITTED THAT PROVISION FROM THE FINAL LEGISLATION HE PROPOSED LAST WEEK CATHERINE HANSON GENERAL COUNSEL FOR THE MEDICAL ASSOCIATION SAID THE GROUP'S MAIN OBJECTION TO THE CALIFORNIA LAW IS THAT PHYSICANS CAN'T DEFEND THEMSELVES IN THE MONTHS AND YEARS OF DELAY BETWEEN THE TIME A REQUEST IS MADE OF THE ATTORNEY GENERAL AND THE ATTORNEY GENERAL'S FINAL DECISION THE GROUP'S ONLY COMPLAINT ABOUT DISCLOSING FELONIES AND LAWSUIT JUDGMENTS IS THAT THE BOARD DIDN'T FOLLOW THE PROPER REGULATORY PROCESS FOR CHANGING ITS RULES MS HANSON SAID 9311050061 931105 BUSINESS BRIEF NORCEN ENERGY RESOURCES LTD OIL GAS ASSET ACQUISITION IN GULF OF MEXICO PLANNED NORCEN ENERGY RESOURCES LTD SAID A PROPOSED ACQUISITION OF OFFSHORE OIL AND GAS ASSETS IN THE GULF OF MEXICO WOULD MAKE IT MAJOR OPERATOR IN THE REGION THE CALGARY ALBERTA OIL AND GAS PRODUCER WHICH IS 42OWNED BY TORONTO RESOURCES COMPANY NORANDA INC SAID IT TENTATIVELY AGREED TO BUY 11 BLOCKS OF GULF OF MEXICO OIL AND GAS PROPERTIES WITH 128 PRODUCING WELLS FROM TORCH ENERGY ADVISORS INC HOUSTON NORCEN SAID IT ALSO AGREED TO PURCHASE PRODUCTION INFRASTRUCTURE INCLUDING PIPELINES GAS PLANTS AND SHORE FACILITIES FROM TORCH CITING A CONFIDENTIALITY AGREEMENT BOTH COMPANIES DECLINED TO DISCLOSE THE TRANSACTION'S PRICE OR OIL AND GAS PRODUCTION AND RESERVE FIGURES ASSOCIATED WITH THE TORCH PROPERTIES UNTIL FINANCING ARRANGEMENTS AND OTHER FINAL APPROVALS ARE IN PLACE 9311050060 931105 BUSINESS BRIEF CANDELA LASER CORP CONCERN AND CYNOSURE SETTLE PART OF DISPUTE OVER PATENTS CANDELA LASER CORP AND CYNOSURE A COMPANY FORMED BY HORACE W FURUMOTO COFOUNDER AND FORMER CHAIRMAN OF CANDELA LASER SETTLED PART OF THEIR YEARLONG PATENT DISPUTE AS PART OF THE SETTLEMENT CYNOSURE AGREED NOT TO INFRINGE ON ONE OF CANDELA LASER'S PATENTS RELATED TO DYECIRCULATION SYSTEMS CANDELA LASER ALSO AGREED TO DROP ITS RELATED CLAIMS OF FALSE ADVERTISING AND MISAPPROPRIATION OF TRADE SECRETS AS WELL AS ANY CLAIMS AGAINST DR FURUMOTO CANDELA LASER SAID IT WILL CONTINUE TO PRESS ITS CLAIMS CONCERNING TWO OTHER PATENTS THROUGH A SUIT FILED IN FEDERAL COURT IN BOSTON IN OCTOBER 1992 THE PATENTS IN DISPUTE ARE USED IN LASERS FOR DERMATOLOGY APPLICATIONS CYNOSURE OF BEDFORD MASS SAID IT BELIEVES CANDELA LASER'S REMAINING PATENT CLAIMS ARE MERITLESS WAYLAND MASSBASED CANDELA LASER SAID IT IS SEEKING A PERMANENT INJUNCTION TO STOP CYNOSURE FROM SELLING PRODUCTS BASED ON THE DISPUTED PATENTS 9311050059 931105 MARKETING & MEDIA STRAUS III JOINS APERTURE AS FOUNDATION'S PUBLISHER NEW YORK ROGER STRAUS III JOINED APERTURE FOUNDATION AS PUBLISHER AND GENERAL MANAGER OF THIS PUBLISHER OF FINE PHOTOGRAPHY BOOKS MR STRAUS 49 YEARS OLD LEFT HIS FAMILY'S PUBLISHING COMPANY FARRAR STRAUS & GIROUX WHICH IS APERTURE'S BOOKTRADE DISTRIBUTOR IN SEPTEMBER HE LEFT FOLLOWING A PHILOSOPHICAL DISPUTE WITH HIS FATHER 76YEAROLD ROGER W STRAUS OVER THE COMPANY'S FUTURE DIRECTION THE YOUNGER MR STRAUS HAD BEEN MANAGING DIRECTOR AT FARRAR STRAUS HE SAID APERTURE'S PROPOSAL WAS THE MOST ATTRACTIVE OF SEVERAL OFFERS HE HAD RECEIVED THE ANNOUNCEMENT NOTED THAT MR STRAUS HAS WORKED CLOSELY WITH APERTURE FOR A DECADE IN MARKETING ITS PUBLICATIONS MR STRAUS IS ALSO A PHOTOGRAPHER MICHAEL HOFFMAN EXECUTIVE DIRECTOR OF APERTURE WAS NAMED EDITOR IN CHIEF OVERSEEING THE EDITORIAL DIRECTION OF THE COMPANY A NOTFORPROFIT FOUNDATION SEPARATELY FARRAR STRAUS SAID JONATHAN GALASSI WHO CONTINUES AS EDITOR IN CHIEF WAS NAMED EXECUTIVE VICE PRESIDENT OF THE PUBLISHING COMPANY 9311050058 931105 BUSINESS BRIEF DIGITAL EQUIPMENT CORP CEO SAYS RETURN TO PROFIT IS POSSIBLE THIS FISCAL YEAR DIGITAL EQUIPMENT CORP'S CHIEF EXECUTIVE ROBERT B PALMER SAID A RETURN TO PROFITABILITY IN THE CURRENT FISCAL YEAR ENDING JUNE 30 IS A REASONABLE EXPECTATION BUT WOULDN'T MAKE A SPECIFIC FORECAST IN FISCAL 1993 THE MAYNARD MASSBASED COMPUTER MAKER HAD A LOSS OF 251 MILLION OR 193 A SHARE ON REVENUE OF 1437 BILLION MR PALMER TOLD SHAREHOLDERS AT THE COMPANY'S ANNUAL MEETING THAT ASSUMING A RELATIVELY STABLE ENVIRONMENT DIGITAL WOULD CONTINUE TO CUT COSTS AND TIGHTEN ITS WORK FORCE BUT AT A SOMEWHAT SLOWER PACE THAN IN FISCAL 1993 WHEN 15000 JOBS WERE CUT SHAREHOLDERS ALSO AUTHORIZED AS MANY AS 25 MILLION PREFERRED SHARES BUT EXECUTIVES SAID THERE ARE NO PLANS TO ISSUE THE SHARES MR PALMER NOTED THAT OPERATING LOSSES NARROWED TO 75 MILLION IN THE LATEST YEAR FROM 950 MILLION IN FISCAL 1992 9311050057 931105 BUSINESS BRIEF ANNTAYLOR STORES CORP OWNEDSTORE SALES INCREASED 59 IN MONTH OF OCTOBER ANNTAYLOR STORES CORP SAID SALES FOR OWNED STORES ROSE 59 TO 388 MILLION FROM 366 MILLION A YEAR EARLIER FOR THE FOUR WEEKS ENDED OCT 30 OWNED SAMESTORE SALES ROSE 09 FOR THE PERIOD TOTAL SALES FOR THE FOUR WEEKS ROSE 48 TO 388 MILLION FROM 37 MILLION INCLUDING LEASED SHOEDEPARTMENT SALES OF 368000 IN THE YEAREARLIER PERIOD THE LEASED SHOE DEPARTMENT WAS PHASED OUT EFFECTIVE FEB 1 TOTAL SAMESTORE SALES WERE FLAT THE NEW YORK WOMEN'S SPECIALTY RETAILER OPERATES 225 STORES IN 38 STATES AND THE DISTRICT OF COLUMBIA 9311050056 931105 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 40 DAYS 308 41 TO 79 DAYS 335 80 TO 149 DAYS 337 150 TO 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 340 60 DAYS 340 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 272 TWO MONTHS 275 THREE MONTHS 283 SIX MONTHS 298 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 340 THREE MONTHS 345 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 332 60 DAYS 329 90 DAYS 329 120 DAYS 329 150 DAYS 330 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/2 3 3/8 TWO MONTHS 3 1/2 3 3/8 THREE MONTHS 3 1/2 3 3/8 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/2 THREE MONTHS 3 9/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 644 JAPAN 3375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY NOVEMBER 11993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 311 13 WEEKS 325 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 694 60 DAYS 703 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3625 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 697 60 DAYS 707 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9311050055 931105 CONTINENTAL AIR HAD PROFIT OF 124 MILLION IN QUARTER HOUSTON CONTINENTAL AIRLINES IN ITS FIRST FULL QUARTER OF OPERATION SINCE EMERGING FROM BANKRUPTCYCOURT PROTECTION IN LATE APRIL REPORTED NET INCOME OF 124 MILLION OR 53 CENTS A SHARE FOR THE THIRDQUARTER IN THE YEAREARLIER PERIOD WHEN THE AIRLINE WAS OPERATING UNDER CHAPTER 11 THE COMPANY HAD A NET LOSS OF 295 MILLION OR 64 CENTS A SHARE REVENUE ROSE TO 156 BILLION FROM 141 BILLION A YEAR AGO DAN GARTON CHIEF FINANCIAL OFFICER SAID THAT WHILE CONTINENTAL'S RESULTS FOR LATEST QUARTER WERE FAVORABLE HE EXPECTS A FOURTHQUARTER LOSS WHICH IS COMMON IN THE AIRLINE INDUSTRY ALSO HE SAID CONTINENTAL WON'T MEET THE YEARLY OPERATING PROFIT OF 157 MILLION AND NET INCOME OF 622 MILLION IT HAD PREDICTED WHEN IT EMERGED FROM CHAPTER 11 IN APRIL CONTINENTAL'S THIRDQUARTER RESULTS INCLUDED A ONETIME CHARGE OF 13 MILLION RELATED TO THE AIRLINE'S TERMINATION OF SERVICE TO AUSTRALIA AND NEW ZEALAND ALSO THE AIRLINE SAID IT ADJUSTED ITS AIR TRAFFIC LIABILITY A MOVE THAT INCREASED PASSENGER REVENUE BY 75 MILLION 9311050054 931105 BUSINESS BRIEF FIRST TENNESSEE NATIONAL CORP SNMC ACQUISITION PLANNED FOR 67 MILLION IN STOCK FIRST TENNESSEE NATIONAL CORP SAID IT AGREED TO BUY SNMC MANAGEMENT CORP FOR 67 MILLION IN STOCK SNMC IS THE DALLASBASED PARENT OF SUNBELT NATIONAL MORTGAGE CORP A MORTGAGE LENDING COMPANY THE MEMPHIS BANK HOLDING COMPANY SAID IT EXPECTS THE ACQUISITION TO ADD TWO CENTS A SHARE TO EARNINGS IN 1994 AND FOUR CENTS IN 1995 BEFORE ONETIME ACQUISITION EXPENSES OF ABOUT NINE CENTS A SHARE AN EARLIER ACQUISITION OF MARYLAND NATIONAL MORTGAGE CORP SHOULD ADD THREE CENTS A SHARE IN 1994 AND SIX CENTS IN 1995 FIRST TENNESSEE HAD 1992 NET INCOME OF 892 MILLION OR 319 A SHARE 9311050053 931105 BUSINESS BRIEF CU BANCORP CALIFORNIA UNITED SUBSIDIARY IS RELEASED FROM AGREEMENT CU BANCORP SAID ITS CALIFORNIA UNITED BANK SUBSIDIARY WAS RELEASED BY FEDERAL REGULATORS FROM A JULY 1992 FORMAL AGREEMENT DESIGNED TO IMPROVE OPERATIONS WE VIEW THE TERMINATION OF THIS ORDER AS A VOTE OF CONFIDENCE FOR THE BOARD AND NEW MANAGEMENT SAID STEPHEN G CARPENTER WHO TOOK OVER LAST YEAR AS CHIEF EXECUTIVE OFFICER OF THE ENCINO CALIF BANKHOLDING COMPANY THE AGREEMENT WITH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY REQUIRED THE BANK TO MAINTAIN CERTAIN CAPITAL LEVELS ADOPT A PROGRAM TO REDUCE CERTAIN ASSETS AND MAINTAIN AN ADEQUATE LOANLOSS RESERVE AMONG OTHER REQUIREMENTS 9311050052 931105 WHAT'S NEWS WORLDWIDE THE SENATE AGREED TO EXPAND A CRIME BILL TO FUND 100000 POLICE OFFICERS RESPONDING TO PUBLIC CONCERN ABOUT CRIME THE SENATE IN A 944 VOTE LATE LAST NIGHT MOVED TO DRAMATICALLY BOOST SPENDING ON ANTICRIME MEASURES THE LAWMAKERS AGREED ON AN AMENDMENT TO SPEND 22 BILLION FOR NEW PRISONS PROGRAMS TO COMBAT VIOLENCE AGAINST WOMEN FACILITIES TO HOUSE JUVENILE OFFENDERS AND CLINTON'S CAMPAIGN PLEDGE TO PUT 100000 NEW POLICE OFFICERS ON THE STREETS THE AMENDMENT DWARFED THE 35 BILLION VERSION PASSED BY THE HOUSE SEN BIDEN CALLED THE PROPOSAL THE MOST SIGNIFICANT FEDERAL EFFORT TO DEAL WITH VIOLENT CRIME IN AMERICA THAT HAS EVER BEEN UNDERTAKEN BY THE SENATE HOUSE SPEAKER FOLEY REJECTED THE IDEA OF INCLUDING IN HEALTHREFORM LEGISLATION A TAX INCREASE ON HANDGUN AMMUNITION THE PROPOSAL FOR BOOSTING THE FEDERAL TAX ON HANDGUN BULLETS IS BEING PUSHED BY SENATE FINANCE COMMITTEE CHIEF MOYNIHAN HOWEVER FOLEY SAID SUCH A TAX INCREASE IS NOT A GOOD OR HELPFUL SUGGESTION THE WHITE HOUSE TRIED TO RECOVER FROM AN EARLIER POLITICAL SLIPUP AND IS NOW SAYING THAT ABOUT 30 OF INSURED AMERICANS WOULD PAY MORE FOR THEIR BENEFITS UNDER THE PRESIDENT'S HEALTHCARE PLAN THAN THEY CURRENTLY DO THAT'S DOWN FROM THE ADMINISTRATION'S ESTIMATE OF 40 ONLY A WEEK AGO VICE PRESIDENT GORE CHALLENGED TEXAS BILLIONAIRE PEROT TO A TELEVISED DEBATE ON NAFTA PEROT ACCEPTED BUT THE FORMAT OF THE DEBATE HASN'T BEEN WORKED OUT MEANWHILE NO MORE HOUSE MEMBERS CAME FORWARD TO ANNOUNCE THEIR SUPPORT FOR THE TRADE PACT CHRISTOPHER OFFERED A SANGUINE VIEW OF RUSSIA'S NEW MILITARY DOCTRINE WHICH EXPANDS PEACEKEEPING ACTIVITIES AND REVERSES A PLEDGE NOT TO BE THE FIRST TO USE NUCLEAR ARMS THE SECRETARY OF STATE DISMISSED THE SHIFT ON NUCLEAR ARMS SAYING THE US NEVER TOOK SERIOUSLY THE SOVIET PROMISE NOT TO INITIATE AN ATTACK ABOUT 200 RUSSIAN MARINES CAME ASHORE IN WESTERN GEORGIA TO GUARD VITAL TRANSPORTATION LINKS AND BOLSTER THE GEORGIAN GOVERNMENT'S EFFORT TO DEFEAT REBELS THE FORCE FROM THE BLACK SEA FLEET LANDED AT THE PORT OF POTI AS THE SHEVARDNADZE GOVERNMENT SEEMED TO BE MAKING PROGRESS AGAINST REBELS SUPPORTING OUSTED PRESIDENT GAMSAKHURDIA FIREFIGHTERS IN CALIFORNIA CONTAINED 70 OF AN 18500ACRE ARSON FIRE IN THE MALIBU AREA THAT STARTED ON TUESDAY AND DESTROYED OVER 200 HOUSES A 250000 REWARD WAS POSTED FOR INFORMATION LEADING TO THE CAPTURE OF WHOEVER SET THE BLAZE THE CALIFORNIA MEDICAL ASSOCIATION FILED A SUIT TO BAR OFFICIALS FROM GIVING OUT DATA ABOUT DOCTORS' DISCIPLINARY RECORDS THE SUIT AIMS TO STOP THE STATE'S MEDICAL BOARD FROM IMPLEMENTING RULES LETTING PATIENTS KNOW WHETHER THE BOARD HAS RECOMMENDED THAT A DOCTOR BE CHARGED WITH DISCIPLINARY VIOLATIONS A US COURT IN NEW HAMPSHIRE ORDERED THE CONCORD MONITOR NEWSPAPER TO PAY REPORTERS AND PHOTOGRAPHERS OVERTIME WAGES THE FEDERAL JUDGE RULED THAT JOURNALISTS AREN'T PROFESSIONALS UNDER THE FEDERAL LABOR LAWS AND THEREFORE ARE ENTITLED TO RECEIVE OVERTIME PAY FROM THEIR EMPLOYER WR GRACE & CO WILL COLLABORATE WITH CEDARSSINAI MEDICAL CENTER OF LOS ANGELES IN DEVELOPING A DEVICE THAT CAN BUY TIME FOR PATIENTS WITH CRITICAL LIVER DISEASE UNTIL A DONOR ORGAN BECOMES AVAILABLE FOR TRANSPLANT MOSCOW WON'T BE TAKING MAJOR BUSINESS FROM US AEROSPACE FIRMS IF THE US AND RUSSIA MERGE THEIR SPACE STATION PROJECTS NASA SAID ONE EXCEPTION IS A CASE AFFECTING LOCKHEED A RIGHTWING STRIKE PARALYZED HAITI'S CAPITAL AS MILITARY LEADERS REMAINED SILENT OVER WHETHER THEY WOULD ATTEND DISCUSSIONS AIMED AT RESTORING DEMOCRACY THE TALKS ARE SCHEDULED FOR TOMORROW KURDISH MILITANTS SMASHED AND BURNED TURKISH CONSULATES AND BUSINESSES ACROSS EUROPE TO PROTEST TURKEY'S TREATMENT OF ITS KURDISH MINORITY AT LEAST ONE PERSON WAS KILLED AND 16 WERE INJURED THE PENTAGON SOUGHT TO REASSURE AMERICANS ABOUT AN AIDS SCARE IN GERMANY SAYING ONLY A VERY SMALL NUMBER OF US MILITARY PERSONNEL AND THEIR FAMILIES SHOULD BE AFFECTED BY A SCANDAL OVER TAINTED BLOOD 9311050051 931105 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED OCT 29 ACCOUNTED FOR 98 OR AN AVERAGE 274 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 183 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 272 INVOLVED STOCKINDEX ARBITRAGE UP FROM 253 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 546 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR CUSTOMERS WHILE 407 WAS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING AN ADDITIONAL 47 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS SUSQUEHANNA NOMURA SECURITIES AND COOPER NEFF EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND SALOMON BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9311050050 931105 CORPORATE FOCUS INSURANCE BROKER COULD USE A POLICY AGAINST PROBLEMS ALEXANDER & ALEXANDER RESTATES PROFIT AS WOES CROP UP ONE AFTER ANOTHER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ALEXANDER & ALEXANDER SERVICES INC THE NATION'S SECONDLARGEST INSURANCE BROKER SEEMS TO RUN INTO ONE PROBLEM AFTER ANOTHER IN RECENT YEARS THE COMPANY'S EARNINGS HAVE BEEN DRAGGED DOWN BY A SEEMINGLY UNENDING STRING OF LEGAL SETTLEMENTS AND RESTRUCTURING CHARGES THE WEAK ECONOMY AND THE SOFT PRICING FOR COMMERCIAL INSURANCE AS WELL AS LOW INTEREST RATES HAVE ONLY MADE MATTERS WORSE YESTERDAY THE COMPANY MOVED TO PUT THE LATEST SURPRISE FOR STOCKHOLDERS BEHIND IT BY RESTATING ALMOST THREE YEARS' OF EARNINGS THE ACTION WAS TAKEN TO REDRESS WHAT THE INSURER CONCEDES WAS INFLATED REVENUE BY ITS CONSULTING UNIT ALEXANDER CONSULTING GROUP THE RESTATEMENT REDUCED PREVIOUSLY REPORTED PROFIT BY 12 MILLION BUT DIDN'T HAVE ANY IMPACT ON THIRDQUARTER EARNINGS AS FOR THE THIRD QUARTER THE COMPANY TOOK A 13 MILLION CHARGE TO ESTABLISH RESERVES FOR POSSIBLE LEGAL CLAIMS AGAINST ITS EMPLOYEES AN ACCOUNTING ADJUSTMENT THE COMPANY DESCRIBED AS ROUTINE AND NOT PEGGED TO A SPECIFIC INCIDENT BECAUSE OF THE CHARGE THE COMPANY REPORTED A 41 MILLION THIRDPERIOD LOSS OR 15 CENTS A SHARE COMPARED WITH YEARAGO PROFIT OF 83 MILLION OR 20 CENTS A SHARE REVENUE FOR THE QUARTER FELL TO 3214 MILLION FROM 3381 MILLION A YEAR EARLIER IN RECENT YEARS INSURANCE BROKERS WHICH ACT AS MIDDLEMEN BETWEEN INSURANCE COMPANIES AND CUSTOMERS HAVE BEEN ROCKED BY THE SAME CIRCUMSTANCES HURTING THE COMMERCIAL INSURANCE BUSINESS IN GENERAL THE SLUGGISH ECONOMY HAS REDUCED DEMAND FOR INSURANCE AND FIERCE COMPETITION HAS DRIVEN DOWN THE COST OF INSURANCE BOTH FACTORS MAKE FOR SMALLER BROKERAGE COMMISSIONS NOW WITH THE BUSINESS CLIMATE AND INSURANCE PRICES SHOWING SIGNS OF IMPROVEMENT ANALYSTS SAY ALEXANDER & ALEXANDER SHOULD BEGIN MAKING IMPRESSIVE PROFITS IF IT DOESN'T AND IF ITS STOCK PRICE FALLS MUCH BELOW CURRENT LEVELS THE COMPANY COULD BECOME A TAKEOVER CANDIDATE SAID IRA MALIS AN ANALYST WITH THE BALTIMORE BROKERAGE FIRM OF ALEX BROWN & SONS YOU'RE TALKING ABOUT A COMPANY WHOSE TRADING RANGE IS WAY BELOW ITS REVENUE BASE HE SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ALEXANDER & ALEXANDER CLOSED AT 2025 UP 125 CENTS TINSLEY IRVIN CHIEF EXECUTIVE OFFICER A GEORGIA NATIVE WHO BEGAN HIS CAREER AS AN AGENT FOR HARTFORD INSURANCE CO WON'T SAY WHEN RESULTS WILL IMPROVE BUT HE SAID HE IS CONFIDENT HE HAS DONE EVERYTHING HE CAN TO POSITION THE COMPANY FOR BETTER TIMES MR IRVIN ALSO IS SURE A TAKEOVER WOULDN'T BE BEST FOR STOCKHOLDERS IT'S IN OUR SHAREHOLDERS' INTEREST TO ACHIEVE THE GOALS AS AN INDEPENDENT COMPANY HE SAID ADDING THAT THAT HE HASN'T RECEIVED ANY INQUIRIES FROM WOULDBE SUITORS THE COMPANY'S LATEST PROBLEMS ECHO EARLIER MISFORTUNES MOST NOTABLY THE DISASTROUS 1982 TAKEOVER OF BRITISH INSURANCE BROKER ALEXANDER HOWDEN A MOVE MR MALIS CALLS THE WORST ACQUISITION IN HISTORY NOT ONLY DID THE TAKEOVER CREATE A HUGE TAX PROBLEM WITH THE INTERNAL REVENUE SERVICE WHICH WAS ONLY RECENTLY SETTLED BUT IT ALSO LEFT ALEXANDER WITH AN OPENENDED LIABILITY FOR CERTAIN INSURANCE CLAIMS AGAINST SPHERE DRAKE INSURANCE GROUP A UK INSURER FORMERLY OWNED BY HOWDEN ALEXANDER & ALEXANDER HAS SET UP RESERVES TO COVER BOTH THE TAX SITUATION AND THE SPHERE DRAKE LIABILITY MR IRVIN SAID NEITHER REPRESENTS A CONTINUING THREAT TO THE COMPANY'S EARNINGS THEN THERE IS THE QUESTION ABOUT ITS EXPOSURE TO THE FAILURE OF MUTUAL FIRE MARINE & INLAND INSURANCE CO AN INSURER THAT PENNSYLVANIA OFFICIALS PUT INTO RECEIVERSHIP IN 1986 A FORMER ALEXANDER & ALEXANDER SUBSIDIARY SHAND MORAHAN & CO HAD PLACED INSURANCE WITH MUTUAL FIRE NOW PENNSYLVANIA REGULATORS ARE SUING ALEXANDER & ALEXANDER ALLEGING IT VIOLATED THE TERMS OF AGREEMENTS WITH MUTUAL FIRE MR IRVIN SAID ALEXANDER & ALEXANDER HAS STRONG DEFENSES AGAINST THE ALLEGATIONS AND HAS SET UP A RESERVE TO HANDLE ANY POSSIBLE LEGAL DAMAGES HE DECLINED TO SPECIFY THE SIZE OF THE RESERVE IN ADDITION TO FIGHTING COURT BATTLES THE COMPANY ALSO HAS MOVED TO STAMP OUT SUSPICIONS ABOUT ITS CONSULTING BUSINESS WHICH GENERATES 16 OF OVERALL EARNINGS QUESTIONS BEGAN IN SEPTEMBER AFTER ALEXANDER & ALEXANDER ANNOUNCED IT HAD OVERSTATED REVENUE THE CONSULTING UNIT HAD RECORDED PROFIT WITHOUT TAKING INTO ACCOUNT THAT SOME OF THE BILLS SENT TO CLIENTS MIGHT NEVER BE PAID OR MIGHT NOT BE PAID IN FULL A FEW DAYS LATER IT ANNOUNCED THAT THE CHIEF EXECUTIVE OF THE CONSULTING BUSINESS ANGELO D'ALESSANDRO HAD DIED AFTER BEING IN A COMA FOR SIX WEEKS THE COMPANY SAYS MR D'ALESSANDRO WAS ON AN AUGUST BUSINESS TRIP TO MEXICO CITY WHEN HE FELL FROM A PEOPLEMOVER AT THE CITY'S MAIN AIRPORT ALEXANDER & ALEXANDER HAS TRIED TO STRENGTHEN THE OPERATION BY INSTALLING DONALD SEELEY ONE OF ITS TOP FINANCIAL OFFICERS TO SUCCEED MR D'ALESSANDRO MR SEELEY ALREADY HAS INSTALLED NEW ACCOUNTING CONTROLS TO ENSURE THAT THE QUESTIONABLE PRACTICES DON'T RECUR THE COMPANY ALSO FIRED THREE SENIOR OFFICIALS OF THE CONSULTING BUSINESS AS WELL AS TWO MIDDLE MANAGERS MR IRVIN SAID HE DOESN'T BLAME THE COMPANY'S AUDITOR DELOITTE & TOUCHE AND THAT HE HASN'T ANY PLANS TO REPLACE THE FIRM MR IRVIN SAID THE CONCERN ABOUT THE CONSULTING BUSINESS DISTRACTS FROM ALL THE PROGRESS HE HAS MADE HE POINTS TO HOW HE HAS SHED UNPROFITABLE BUSINESSES AND REDUCED THE COMPANY'S HEAD COUNT TO 14200 FROM 18000 FIVE YEARS AGO AS FOR ALEXANDER HOWDEN HE SAYS THE ACQUISITION IS BEGINNING TO LIVE UP TO ORIGINAL EXPECTATIONS MR IRVIN SAID HOWDON'S REINSURANCE BROKERAGE OPERATION IS AMONG THE STRONGEST IN THE WORLD IN ADDITION HOWDEN'S SPECIALTY BROKERAGE BUSINESS WHICH PLACES DIFFICULT RISKS IS ONE OF THE FASTESTGROWING BROKERS IN THE BUSTLING LONDON MARKET NOW MR IRVIN SAYS THE MAIN THING LEFT TO BE DONE IS TO WAIT FOR MORE BUSINESS WHICH IS CERTAIN TO COME WHEN THE ECONOMY REBOUNDS AND THE CYCLE THAT HAS DRIVEN DOWN COMMERCIAL INSURANCE PRICES TURNS WE NEED TO MOVE OUR REVENUE LINE HE SAID THAT'S WHAT WE'RE REALLY FOCUSED ON BUT WHETHER THAT WILL BE ENOUGH IS ANOTHER MATTER ALEXANDER & ALEXANDER SUFFERS FROM COMPARISONS WITH MARSH & MCLENNAN COS THE NATION'S LARGEST INSURANCE BROKER LAST YEAR MARSH REPORTED AN ENVIABLE 25 RETURN ON STOCKHOLDERS' EQUITY ALEXANDER & ALEXANDER REPORTED A LOSS MARSH & MCLENNAN'S RESULTS DEMONSTRATE THE POSSIBILITIES IN THE INSURANCEBROKERAGE BUSINESS ANALYSTS ASSERT THAT ALEXANDER & ALEXANDER WITH 500 OFFICES AROUND THE WORLD AND A BLUECHIP ROSTER OF CLIENTS SUCH AS MERCK & CO COULD PERFORM JUST AS WELL IF ONLY IT LIVED UP TO ITS POTENTIAL 9311050049 931105 STARBUCKS CORP SALES GAIN 72 SEATTLE STARBUCKS CORP A COFFEE ROASTER AND RETAILER SAID SALES IN THE FOUR WEEKS ENDED OCT 31 INCREASED 72 TO 162 MILLION FROM 94 MILLION IN THE YEAREARLIER PERIOD 9311050048 931105 BUSINESS BRIEF CYRIX CORP FIRM HAD SHARP RISE IN NET REVENUE IN THE THIRD PERIOD CYRIX CORP HAD SHARPLY HIGHER THIRDQUARTER NET INCOME AND REVENUE COMPARED WITH YEAREARLIER LEVELS BUT SUPPLY PROBLEMS CAUSED NET TO DECLINE FROM THE SECOND QUARTER THE RICHARDSON TEXAS SEMICONDUCTOR COMPANY REPORTED ITS THIRDPERIOD RESULTS IN LATE OCTOBER IN THE QUARTER IT HAD A PROFIT OF 49 MILLION OR 25 CENTS A SHARE COMPARED WITH NET INCOME OF 1 MILLION OR SIX CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE CLIMBED TO 311 MILLION FROM 164 MILLION LAST YEAR DESPITE THE IMPRESSIVE GROWTH YEARTOYEAR WHICH THE COMPANY ATTRIBUTED TO ITS ENTRY IN THE MICROPROCESSOR MARKET CYRIX'S NET WAS OFF FROM THE SECOND QUARTER'S PROFIT OF 72 MILLION OR 42 CENTS A SHARE WHICH CAME ON REVENUE OF 32 MILLION THE COMPANY SAID IT HAS BEEN STRUGGLING WITH PRICING PRESSURES AND LOW MANUFACTURING PRODUCTIVITY 9311050047 931105 TECHNOLOGY BRIEF BIOGEN INC COURT RULES THAT MEDEVA INFRINGED ON ANTIGENS PATENT A LONDON COURT RULED THAT MEDEVA PLC A BRITISH BIOTECHNOLOGY FIRM INFRINGED ON BIOGEN INC'S PATENT FOR HEPATITIS B ANTIGENS THE RULING REAFFIRMS THE STRENGTH OF OUR HEPATITIS B ANTIGENS PATENT POSITION THE BIOTECHNOLOGY COMPANY IN CAMBRIDGE MASS SAID THE COMPANY ADDED THAT THE DECISION IS AN IMPORTANT STEP IN PREVENTING MEDEVA FROM MARKETING A VACCINE THAT INFRINGES ON BIOGEN'S PATENTS BIOGEN RECEIVES ROYALTY PAYMENTS FROM THE PATENT THROUGH LICENSE AGREEMENTS WITH SMITHKLINE BEECHAM PLC AND MERCK & CO MEDEVA SAID IT WOULD APPEAL THE RULING IN LONDON MEDEVA SHARES CLOSED AT 11750 PENCE 17420 DOWN 750 PENCE IN TRADING ON THE NASDAQ STOCK MARKET BIOGEN SHARES FELL 2875 OR 74 TO 36125 A SHARE 9311050046 931105 BUSINESS BRIEF GREAT AMERICAN COMMUNICATIONS CREDITORS AND SHAREHOLDERS APPROVE BANKRUPTCY PLAN GREAT AMERICAN COMMUNICATIONS CO CINCINNATI SAID CREDITORS AND SHAREHOLDERS OVERWHELMINGLY ACCEPTED A JOINT PREPACKAGED BANKRUPTCY PLAN FOR IT AND TWO SUBSIDIARIES WITH THE SUCCESSFUL SOLICITATION GREAT AMERICAN SAID IT AND THE UNITS GACC HOLDING CO AND NEW GACC HOLDINGS INC WILL FILE FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN THE NEXT FEW DAYS THE PLAN CALLS FOR THE ISSUANCE OF REORGANIZED GREAT AMERICAN COMMON STOCK AND 14 NOTES IN EXCHANGE FOR DEBT AND PREFERRED STOCK OUTSTANDING OF THE COMPANIES IT WOULD CUT THE COMPANIES' DEBT AND PREFERRED STOCK OBLIGATIONS TO 433 MILLION FROM 910 MILLION AND REDUCE THEIR ANNUAL EXPENSES FOR INTEREST AND PREFERRED STOCK DIVIDENDS TO 41 MILLION FROM MORE THAN 94 MILLION 9311050045 931105 DELTA AIR DEFERS DELIVERY OF JETS IN 1 BILLION CUT MOVE IS A BLOW TO BOEING MCDONNELL DOUGLAS CUT TOTALS 32 PLANES BY BRIDGET O'BRIAN AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL DELTA AIR LINES WHICH HAS ALREADY GONE THROUGH SEVERAL ROUNDS OF STEEP COSTCUTTING SAID IT WILL CUT ITS AIRCRAFT CAPITAL SPENDING BY AN ADDITIONAL 1 BILLION BY DEFERRING DELIVERY OF 32 JETS THE ANNOUNCEMENT COMES A WEEK AFTER DELTA ANNOUNCED A FISCAL FIRSTQUARTER PROFIT OF 604 MILLION OR 65 CENTS PER SHARE BUT DELTA SAID LAST WEEK AND ITS ACTIONS YESTERDAY CONFIRM THAT IT ISN'T COUNTING ON AN AIRLINE INDUSTRY IMPROVEMENT DELTA'S DEFERRAL UNDERSCORES JUST HOW SKEPTICALLY THE AIRLINE INDUSTRY VIEWS ITS RECENT SIGNS OF RECOVERY THE ATLANTABASED AIRLINE HAD SAID BEFORE YESTERDAY THAT IT WAS IN DISCUSSIONS WITH AIRCRAFT MANUFACTURERS TO POSTPONE DELIVERY OF AN UNSPECIFIED NUMBER OF AIRCRAFT YESTERDAY DELTA SAID IT WILL DEFER DELIVERY OF 17 BOEING CO JETS AND 15 MCDONNELL DOUGLAS CORP JETS FOR BOEING THAT BREAKS DOWN TO 10 BOEING 737S THREE 757S AND FOUR 767S THE AFFECTED MCDONNELL PLANES ARE FOUR MD11S FIVE MD88S AND SIX MD90S EVEN WITH THE DEFERRALS DELTA WILL STILL TAKE DELIVERY OF 35 OTHER AIRCRAFT FROM BOEING MCDONNELL DOUGLAS AND AIRBUS INDUSTRIE OVER THE NEXT TWO YEARS FOR BOEING AND MCDONNELL DOUGLAS THE DEFERRALS ARE ONE MORE BLOW TO JETMAKING OPERATIONS ALREADY REELING FROM CUTBACKS OVER THE LAST TWO YEARS BOTH COMPANIES WHICH SAID THEY ALREADY HAD ALLOWED FOR DELTA'S LATEST ACTIONS HAVE BEEN SHARPLY CUTTING PRODUCTION TOP OFFICIALS AT MCDONNELL DOUGLAS HEADQUARTERS IN ST LOUIS SAY PRODUCTION AT THEIR COMMERCIAL AIRPLANE FACTORIES IN LONG BEACH CALIF WILL FALL BELOW 30 JETS NEXT YEAR FOR THE SMALLER MD90/MD80 SERIES JETLINERS WITH A SIMILAR NUMBER OF MD11 WIDEBODY AIRLINERS PRODUCED SEATTLEBASED BOEING IS WELL PAST THE HALFWAY MARK IN A 45 PRODUCTION CUT THROUGH MID1994 AND HAS BEEN SIZING UP THE NEED FOR FURTHER CUTS IN PRODUCTION OF THE 737S AND OF 747 JUMBO JETS MANAGERS AT BOTH COMPANIES ARE HOPING THEY ARE SEEING THE LAST OF DELIVERY DEFERRALS AND CANCELLATIONS AND SOME EXPERT OBSERVERS BELIEVE BOEING MAY DECIDE NOT TO MAKE FURTHER CUTS IN PRODUCTION OF THE 737 JETLINERS BOEING MANAGERS ALSO HAVE BEEN HOPING THAT A LONGAWAITED ORDER FOR 747S FROM SAUDI ARABIA OR FROM THE US MILITARY WILL NEGATE THE NEED FOR CUTS IN PRODUCTION OF THOSE AIRCRAFT NONETHELESS WILLIAM WHITLOW OF PACIFIC CREST SECURITIES IN SEATTLE SAID HE THINKS MORE PAIN IS ON THE WAY IN THE FORM OF MORE PRODUCTION CUTS TO BE SET SOON FOR EARLY 1995 FOR BOTH TYPES OF JETS US AIRLINES SEEM TO BE STABILIZING AFTER A LONG RECESSION BUT JAPANESE AND EUROPEAN AIRLINES HE SAID ARE STILL IN THE TANK MONTHS OF CUTTING DELTA'S MOVES YESTERDAY COME 18 MONTHS AFTER DELTA FIRST ANNOUNCED CUTS OF AS MUCH AS 5 BILLION IN CAPITAL SPENDING AND CANCELLATIONS OF AS MANY AS 100 JETS AT THE TIME THE CARRIER WAS BEING BUFFETED BY THE FAR COSTLIERTHANPLANNED ACQUISITION OF PAN AM CORP'S EUROPEAN ROUTES IN AUGUST OF 1991 AND A SLOWDOWN IN DOMESTIC TRAVEL SINCE THEN DELTA HAS TAKEN OTHER STEPS TO TRIM COSTS INCLUDING LAYING OFF SOME TEMPORARY AND FULLTIME EMPLOYEES CHANGING EMPLOYEE BENEFITS AND TURNING OVER UNPROFITABLE SHORTHAUL FLIGHTS TO ITS REGIONAL PARTNERS IN MOVES MORE PECULIAR TO DELTA HOWEVER THE AIRLINE TOOK THOSE STEPS A LITTLE AT A TIME IN THE HOPE THAT THE ECONOMY WOULD TURN AROUND WHILE ITS RIVALS HAVE CUT MORE DEEPLY AND LESS FREQUENTLY YESTERDAY A DELTA SPOKESMAN SAID THE AIRCRAFT DEFERRAL WAS PART OF OUR PROGRAM LAUNCHED OVER A YEAR AGO AND IT'S JUST TAKEN TO THIS POINT TO REACH THIS PARTICULAR LEVEL IN OUR NEGOTIATIONS HE ADDED HAD THE ECONOMY CHANGED WE COULD HAVE BROKEN OFF THE NEGOTIATION 9311050044 931105 BUSINESS BRIEF BSD BANCORP INC BANK HOLDING FIRM FILES FOR BANKRUPTCY PROTECTION BSD BANCORP INC SAID IT FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE STATE BANKING OFFICIALS HAD CLOSED ITS SOLE UNIT BANK OF SAN DIEGO LAST FRIDAY AND IT WAS PLACED IN FEDERAL RECEIVERSHIP THE SAN DIEGO BANK HOLDING COMPANY ALSO SAID THAT FRANK MERCARDANTE 44 YEARS OLD CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT HAD RESIGNED MARILYN CRESON CHIEF FINANCIAL OFFICER WAS NAMED ACTING PRESIDENT MS CRESON 42 SAID IT IS UNLIKELY ANY ASSETS WILL REMAIN FOR SHAREHOLDERS WHEN THE BANKRUPTCY PROCESS IS COMPLETED THE MOVE HAD BEEN EXPECTED BSD HAS HAD A SERIES OF LOSSES AND A GROWING PERCENTAGE OF NONPERFORMING ASSETS THE COMPANY HAD CONSOLIDATED ITS BANK SUBSIDIARIES AND SOLD OFF ASSTS RECESSION AND A RASH OF FINANCIALINSTITUTION FAILURES IN THE SAN DIEGO AREA COMPOUNDED THE PROBLEM BY FURTHER KNOCKING DOWN REALESTATE VALUES MS CRESON SAID 9311050043 931105 INTERNATIONAL REPORTER'S NOTEBOOK GEORGIAN CAPITAL FEELS THE MISERY OF WAR IN PROVINCES BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL TBILISI GEORGIA STROLLING INTO THE RIONI COOPERATIVE RESTAURANT TWO YOUNG MEN STASH THEIR KALASHNIKOV AUTOMATIC RIFLES UNDER A TABLE SEAT THE TWO WOMEN ACCOMPANYING THEM AND ORDER A LAVISH LUNCH WHAT'S RARE ABOUT THIS SCENE IN THE FORMER SOVIET STATE OF GEORGIA ISN'T THE GUNS BUT THE LUNCH REPLETE WITH WINE CHICKEN AND HOT CHEESE PIE CALLED KHACHAPURI IT IS A FEAST BEYOND REACH OF MOST PEOPLE IN THIS HUNGRY AND BLOODDRENCHED NATION REBORN IN 1991 AS THE INDEPENDENT REPUBLIC OF GEORGIA AFTER ALMOST TWO CENTURIES OF RUSSIAN RULE CULMINATING IN SEVEN DECADES UNDER COMMUNISM THE MORE COMMON SCENE IS GOVERNMENT WORKERS THEIR SALARIES DEVALUED TO THE EQUIVALENT OF A DOLLAR OR TWO A MONTH LINING UP FOR SUBSIDIZED BREAD WHICH IS ABOUT ALL THEY LIVE ON GEORGIA WITH ITS BLACK SEA COAST CAUCASUS MOUNTAINS RIVERS AND ORCHARDS IS THE LAND THAT GOD WAS SAVING FOR HIMSELF OR SO GOES THE GEORGIAN TALE BUT FOLKLORE ISN'T SAVING GEORGIA'S 52 MILLION PEOPLE FROM THE RAVAGES OF POSTSOVIET BREAKDOWN IT'S CLEAR THAT THIS IS A SOCIETY IN WHICH BROKEN AND ROTTING SOVIET INSTITUTIONS LIE TOO THICK ON THE GROUND FOR A NORMAL MARKET DEMOCRACY TO GROW WITH CIVIL WAR RAGING IN WESTERN GEORGIA AND CRIME RIFE ON THE ROADS AND IN CITIES NATIONWIDE TBILISI LIVES UNDER A NIGHTLY CURFEW THAT DOESN'T STOP ARMED MEN SERVING IN ASSORTED WARLORD MILITIAS FROM TESTING THEIR FIREPOWER IN THE STREETS OF THE CAPITAL IN A DOWNTOWN TBILISI APARTMENT POLITICAL ANALYST GEORGE TARKHANMOURAVI SITS EXPOUNDING ONE EVENING ON WHAT HE CALLS THE INFANTILISM DEVELOPED HERE DURING YEARS OF SOVIET RULE FOR HALF AN HOUR SPORADIC GUNSHOTS IN THE STREET OUTSIDE ACCOMPANY HIS DISCOURSE ERRATIC GUNFIRE CAN BE HEARD AGAIN LATE THAT NIGHT JUST OUTSIDE THE METECHI PALACE HOTEL THIS AUSTRIANGEORGIAN JOINT VENTURE HOTEL OPENED IN 1991 AS THE FIRST BEACON OF CAPITALIST LUXURY IN TBILISI AFTER THE FALL OF COMMUNISM NOW THE FIRST GREETING TO GUESTS JUST BEYOND THE FRONTDOOR METAL DETECTOR IS A SIGN SAYING FOR THE COMFORT AND SAFETY OF ALL GUESTS KINDLY REQUEST YOU DEPOSIT ALL FIREARMS WITH SECURITY THANK YOU THE HEAD OF STATE FORMER SOVIET FOREIGN MINISTER EDUARD SHEVARDNADZE HAS BEEN PREOCCUPIED SINCE HE TOOK CHARGE HERE IN MARCH 1992 WITH TRYING TO PREVENT A VIOLENT DISINTEGRATION OF THE NATION THIS SEPTEMBER ARMED SEPARATISTS WRENCHED AWAY THE NORTHWESTERN PROVINCE OF ABKHAZIA IN A WAR THAT EXPELLED SOME 240000 REFUGEES INTO THE REST OF GEORGIA NOW MR SHEVARDNADZE IS TRYING TO BEAT BACK AN ATTEMPTED TAKEOVER IN WESTERN GEORGIA BY HIS DEPOSED PREDECESSOR ZVIAD GAMSAKHURDIA THE RAGGED NATURE OF THE FORCES FIGHTING IN GEORGIA IS ON SHOW AT THE HEADQUARTERS OF THE TBILISI COMMANDANT AMONG THE GUARDS LOUNGING IN THE FRONT HALL IS ONE YOUNG MAN WEARING BROWN SLACKS AND A GRAY WOOL BLAZER AND CARRYING TWO KALASHNIKOVS ONE SLUNG OVER EACH SHOULDER ANOTHER MAN WALKS BY IN FATIGUES CARRYING A KALASHNIKOV AND WEARING A DAGGER IN AN ANKLE SHEATH A THIRD GUARD WEARING BLUE JEANS SETS HIS RIFLE DOWN ON A DESK WHERE A SECRETARY NUDGES IT GENTLY ASIDE SO SHE CAN REACH THE PHONE MEANWHILE SOME OF THE REFUGEES REACHING TBILISI FROM ABKHAZIA ARE BEING HOUSED TEMPORARILY ON THE TOP FLOORS OF THE TBILISI TRAIN STATION AMONG THEM IS 31YEAROLD SOSO PAPAVA DRESSED IN FATIGUES WITH ONE LEG OF HIS TROUSERS PINNED UP JUST BELOW HIS RIGHT KNEE WHERE HIS LEG STOPS MR PAPAVA SAYS HE USED TO WORK AT A TEA FACTORY IN THE SOUTHERN PART OF ABKHAZIA IN APRIL HE STEPPED ON A MINE NOW HE IS WAITING TO BE FITTED WITH A PROSTHESIS DONATED BY AID AGENCIES IF I GET THAT PROSTHESIS HE SAYS I'LL GO STRAIGHT BACK TO ABKHAZIA AND FIGHT FOR MY TWO NEPHEWS WHO WERE LOST THERE IN THE FINANCE MINISTRY FINANCE MINISTER DAVID IAKOBIDZE DISPLAYS ON HIS DESK A COLLECTION OF SIX SILVER AND COPPER COINS MINTED EARLY THIS YEAR IN FRANCE AND MOUNTED IN LUCITE THE COINS ARE PROTOTYPES FOR WHAT HE AND SOME ASSOCIATES IN GEORGIA HAD HOPED WOULD BECOME THE NATIONAL CURRENCY WHICH THEY WANTED TO CALL THE TETRI THE WORD IS GEORGIAN FOR WHITE REFERRING TO THE COLOR OF THE SILVER COINS OF ANCIENT TIMES BUT THE TETRI HAS YET TO GET BEYOND HIS DESK THE HIGHEST DENOMINATION AMONG THE SAMPLE COINS IS 50 TETRI THE GOVERNMENT CANNOT AFFORD TO MINT COINS IN AN ECONOMY WHERE WILD LEAPS IN INFLATION KEEP DEVALUING GEORGIA'S MONEY THE PAPER CURRENCY NOW CIRCULATING CALLED THE COUPON WAS INTRODUCED THIS APRIL AT ABOUT 900 PER DOLLAR AND HAS SINCE DROPPED TO ABOUT 37000 THE NEW DEPUTY PRIME MINISTER FOR ECONOMY AMIRAN KADAGASHVILI A 44YEAROLD PRIVATE BUSINESSMAN JOINED THE GOVERNMENT IN SEPTEMBER WITH HOPES OF REFORMING THE ECONOMIC RULES WORKING LATE INTO THE EVENING IN AN OFFICE EQUIPPED WITH EIGHT TELEPHONES MR KADAGASHVILI SAYS HE HAS A BIG PROBLEM FROM PEOPLE WHO WANT SOCIALISM AGAIN ON A SHEET OF PAPER HE ILLUSTRICIES HE'D LIKE TO REFORM LISTING THE VARIOUS STATE LEVIES INVOLVED IN BUSINESS HE ADDS UP THE PERCENTAGES AND FEES TO SHOW THAT SOME TRANSACTIONS IN GEORGIA IF DONE ABOVE BOARD ARE TAXED AT 150 SO MOST OF WHAT DOES FUNCTION IN THE ECONOMY IS NOT ONLY PRIVATE BUT OFF THE BOOKS IN ONE SUCH OPEN MARKET NEAR THE TRAIN STATION PEDDLERS SELL HONEY FROM TAJIKISTAN POMEGRANATES FROM AZERBAIJAN MARGARINE FROM TURKEY CHEESE AND LIGHT BULBS FROM RUSSIA THIS MARKET IS NOT A CHEERFUL SCENE HOWEVER MANY OF THE VENDORS ARE DRUNK BY MIDAFTERNOON ONE GRIZZLED MAN SELLING HOMEMADE MOUSETRAPS SELLS ONLY ONE OR TWO TRAPS A DAY CHARGING ABOUT 8000 COUPONS EACH ABOUT 19 CENTS WE HAVE BECOME LIKE BEGGARS HE SAYS AND UNSAVORY BUSINESS SUCH AS THE NARCOTICS TRADE TENDS TO THRIVE ALONGSIDE THE POMEGRANATE SELLERS THERE ARE BRIGHT SPOTS HERE AND THERE IN A TINY KIOSK BY THE SUBWAY EXIT ON TBILISI'S MAIN STREET A WATCH REPAIRMAN SETS ASIDE HIS DELICATE WORK FOR A MOMENT TO CHAT HE CARRIES NO GUN NEITHER DOES HE HAVE THE THIN HUNGRY LOOK NOW COMMON IN TBILISI HE IS SELFEMPLOYED OFFERING A SERVICE PEOPLE WANT AND WHAT HE WANTS FOR GEORGIA IS SIMPLY PEACE TO DO BUSINESS COMPARED TO OTHER PEOPLE I HAVE MORE INCOME HE SAYS BECAUSE THE MORE I WORK THE MORE I EARN 9311050042 931105 BUSINESS BRIEF METROPOLITAN LIFE INSURANCE CO PRIVATE OFFERING CONCLUDES FOR 700 MILLION OF NOTES METROPOLITAN LIFE INSURANCE CO SAID IT COMPLETED ISSUANCE OF 700 MILLION OF SURPLUS NOTES IN A PRIVATE OFFERING THE NEW YORK INSURANCE COMPANY SAID THE NEW CAPITAL INCLUDES 400 MILLION OF 63 NOTES MATURING IN 2003 AND 300 MILLION OF 745 NOTES TO MATURE IN 2023 SOLD PRINCIPALLY TO INSTITUTIONAL INVESTORS AT THE END OF 1992 METLIFE HAD 65 BILLION OF CAPITAL A FIGURE PROJECTED TO REACH ABOUT 8 BILLION BY THE END OF 1993 INCLUDING THE LATEST SALE METLIFE HAS A TRIPLEA DEBT RATING AND IS UNDER NO REGULATORY PRESSURE TO BOOST CAPITAL BUT MANY INSURERS ARE RAISING CAPITAL IN ADVANCE OF NEW REGULATORY REQUIREMENTS THAT TAKE EFFECT IN 1994 THE COMPANY WHICH MANAGES ABOUT 155 BILLION IN ASSETS SAID THE ADDITIONAL CAPITAL WILL HELP IT RESPOND TO DEMAND FOR NEW INSURANCE AND RETIREMENTSAVINGS PRODUCTS 9311050041 931105 SOTHEBY'S SALE OF 88 PICASSOS DRAWS CRISP INTEREST FROM BARGAIN HUNTERS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A CRISP CRACKERJACK SALE THE SOTHEBY'S AUCTION HOUSE LAST NIGHT ALL BUT FLOODED THE MARKET WITH 88 MEDIUMQUALITY WORKS BY SPANISH MASTER PABLO PICASSO AND VIRTUALLY ALL SOLD IT WAS A TENSE AND KEENLY WATCHED AUCTION WITH THE ART INDUSTRY ANXIOUS TO SEE HOW MUCH MATERIAL A RECOVERING BUT STILL SHAKY MARKET FOR IMPRESSIONIST AND MODERN ART COULD ABSORB OF PERHAPS THE GREATEST 20THCENTURY ARTIST EVEN AT HISTORICALLY LOW PRICES THE SALE'S SECRET ROCKBOTTOM RESERVES THE MINIMUM PRICES THAT THE AUCTIONEER AND SELLER WOULD ACCEPT BEFORE A WORK IS SOLD THE HUGE AUCTION WAS SURPRISINGLY GOOD UNBELIEVABLE SAID RENE SCHARF A NEW YORK ART DEALER BUT WHETHER YOU CAN MAKE A REAL TREND OUT OF IT REMAINS TO BE SEEN WHILE THE ROOM WAS PACKED WITH MANY OF THE POWERFUL NEW YORK LONDON AND PARIS ART DEALERS COLLECTORS WHO REFUSED TO GO HOME EMPTYHANDED DID MOST OF THE BUYING OVERALL SOME MILLIONDOLLAR PICASSO PAINTINGS SOLD FOR SLIGHTLY LESS THAN EXPECTED BUT PICASSO DRAWINGS FETCHED TWO TO THREE TIMES THEIR EXPECTED PRICE CLIMBING INTO THE LOW SIX FIGURES THE SALE STRETCHED ALMOST THREE HOURS AS AUCTIONEER JOHN MARION COAXED INCREMENTAL BIDS OUT OF THE BARGAINHUNGRY BUYERS ON THE BLOCK WAS THE PICASSO COLLECTION OF STANLEY SEEGER AN AMERICAN NOW REPORTEDLY LIVING IN SWITZERLAND HE COLECTED THE WORKS MOSTLY OVER THE PAST DECADE AT AUCTION IN SEVERAL CASES HE PAID HIGHER PRICES FOR THE WORKS THAN LAST NIGHT'S WINNERS HAD TO BID DISMISSED BY SOME DEALERS AS SOUVENIRS BUT LAUDED BY PICASSO SCHOLARS AS VALUABLE CLUES TO THE MASTER'S PSYCHE THE HUGE CACHE BECAUSE OF ITS SIZE HAD BEEN AMONG THE MORE CONTROVERSIAL FINEART COLLECTIONS TO COME ON THE MARKET IN YEARS SOTHEBY'S CAME UNDER MUCH CRITICISM WHEN A SIMILAR BUT MUCH SMALLER SALE OF ANDY WARHOL WORKS FARED BADLY SIX MONTHS AGO SEVERAL BIDDERS CHASED PICASSO'S THE DEATH A 1903 DRAWING OF A MURDERER LOOKING FORLORNLY AT HER VICTIM IT SOLD FOR 36300 ALMOST TRIPLE THE EXPECTED PRICE WORKS ONCE OWNED BY PICASSO'S FRIEND GERTRUDE STEIN THE PARIS WRITER WERE PARTICULARLY PRIZED THE DEATH ONCE PART OF HER COLLECTION WAS PURCHASED BY NEW YORK ANCIENTART DEALERS EDWARD AND SAMUEL MERRIN OTHER WELLKNOWN BUYERS INCLUDED ART DEALERS ERNST BEYELER AND NICHOLAS BERGGRUEN WHILE THE SEEGER COLLECTION FEATURED NO MASTERPIECES SAYS NEW YORK UNIVERSITY ART PROFESSOR AND PICASSO SCHOLAR ROBERT ROSENBLUM IT HAD SUPRISES THAT SHED ILLUMINATING LIGHT ON BETTERKNOWN WORKS THE SALE WAS EXPECTED TO RAISE ABOUT 225 MILLION TO 31 MILLION FOR SOTHEBY'S HOLDINGS INC THE TOTAL CAME IN THE NEAR OF THE HIGH END OF EXPECTATIONS THE HIGHEST PRICES WERE FETCHED BY WOMEN AND CHILDREN BY THE SEASIDE A COLORFUL CONTORTED CUBIST PAINTING DONE IN 1932 WHICH BROUGHT 44 MILLION AND GLASS BOUQUET GUITAR BOTTLE AN EARLY CUBIST STILLLIFE THAT SOLD FOR 23 MILLION BOTH WORKS HAD BEEN EXPECTED TO FETCH ABOUT 25 MILLION TO 35 MILLION ALL PRICES INCLUDE SOTHEBY'S COMMISSION WHICH IS 15 ON THE FIRST 50000 AND 10 ON THE REMAINDER THE AUCTION DRAMA COMMENCES AGAIN TUESDAY EVENING WHEN CHRISTIE'S INTERNATIONAL PLC ATTEMPTS TO SELL CONTEMPORARY ART 9311050040 931105 BUSINESS BRIEF HIBERNIA CORP ACCORDS SIGNED TO ACQUIRE TWO LOUISIANA BANK FIRMS HIBERNIA CORP SAID IT HAS SIGNED DEFINITIVE AGREEMENTS TO BUY TWO BANKING COMPANIES IN LOUISIANA SIGNIFICANTLY INCREASING ITS PRESENCE IN THE NORTHEAST PART OF THE STATE THE NEW ORLEANS BANKING COMPANY WITH 46 BILLION IN ASSETS SAID IT WILL PAY 36 MILLION IN STOCK FOR FIRST BANCORP OF LOUISIANA INC AND 215 MILLION IN STOCK FOR BASTROP NATIONAL BANK FIRST BANCORP WITH 225 MILLION IN ASSETS HAS FIVE BANKING OFFICES IN OUACHITA PARISH AND HOLDS SOUTHERN NATIONAL BANK IN TALLULAH IN MADISON PARISH BASTROP WITH 126 MILLION IN ASSETS HAS THREE BANKING OFFICES IN MOREHOUSE PARISH THE ACQUISITIONS WOULD GIVE HIBERNIA A TOTAL OF 11 OFFICES IN THOSE THREE NORTHEASTERN LOUISIANA PARISHES EARLIER THIS WEEK HIBERNIA SAID THE FEDERAL RESERVE BANK OF ATLANTA LIFTED A RESTRICTION UNDER WHICH THE BANK HAD BEEN OPERATING FOR ABOUT TWO YEARS ALTHOUGH THE LIFTING OF THE RESTRICTION MEANS THE BANK WILL NEED FEWER APPROVALS FROM THE FEDERAL RESERVE FOR THESE ACQUISITIONS A HIBERNIA SPOKESMAN SAID THE AGENCY HAD GIVEN ITS INFORMAL APPROVAL OF THE MOVES 9311050039 931105 BUSINESS BRIEF MOTOROLA INC QUALCOMM INC TO PURCHASE SOME DATA NETWORK ASSETS MOTOROLA INC SCHAUMBURG ILL SAID IT WOULD SELL CERTAIN ASSETS OF ITS DATA COMMUNICATIONS NETWORK FOR TRANSPORTATION COMPANIES TO QUALCOMM INC SAN DIEGO UNDER THE DEAL MOTOROLA SAID IT WAS ESSENTIALLY SELLING TO QUALCOMM THE CUSTOMER BASE FOR ITS OWN LANDBASED WIRELESS NETWORK COVERAGEPLUS THE AMOUNT WASN'T DISCLOSED THE COVERAGEPLUS SYSTEM USES A LANDBASED NETWORK OF COMMUNICATIONS EQUIPMENT TO TRANSMIT DATA ON SHIPMENTS AND TRACK VEHICLE LOCATIONS QUALCOMM USES A SATELLITEBASED SYSTEM TO DO THE SAME THING WHILE MOTOROLA WOULDN'T ELABORATE ON WHY IT WAS GETTING OUT OF THAT BUSINESS INDUSTRY PEOPLE SAID THE COMMUNICATIONS GIANT WASN'T MAKING MONEY ON IT THEY SAID MOTOROLA'S STRATEGY IS TO TRY TO FOCUS MORE ON THE EQUIPMENT SIDE OF THE BUSINESS RATHER THAN ON OPERATING A NETWORK 9311050038 931105 BUSINESS BRIEF CISCO SYSTEMS INC STRONG DEMAND IS CREDITED FOR RISE IN FIRSTPERIOD NET CISCO SYSTEMS INC BENEFITING FROM CONTINUED STRONG DEMAND FOR EQUIPMENT THAT HOOKS COMPUTERS INTO NETWORKS SAID ITS FISCAL FIRSTQUARTER PROFIT NEARLY DOUBLED TO 635 MILLION THE MENLO PARK CALIF CONCERN SAID THAT NET INCOME OF 48 CENTS A SHARE IN THE PERIOD ENDED OCT 24 COMPARES WITH PROFIT OF 332 MILLION OR 26 CENTS A SHARE IN THE SAME YEAREARLIER QUARTER SALES ALSO NEARLY DOUBLED TO 2485 MILLION FROM 1264 MILLION A YEAR AGO THE EARNINGS RELEASED AT THE CLOSE OF MAJOR FINANCIAL MARKETS YESTERDAY SLIGHTLY EXCEEDED ANALYSTS' EXPECTATIONS CISCO'S STOCK FELL 125 CLOSING AT 4975 IN NASDAQ STOCK MARKET TRADING CISCO MAKES NETWORKING HARDWARE CALLED ROUTERS BRIDGES AND SERVERS WHICH LINK DISPARATE COMPUTER SYSTEMS TOGETHER 9311050037 931105 BUSINESS BRIEF SPORTS HEROES INC PACT IS SIGNED FOR MARKETING MEMORABILIA OF JOE FRANKLIN SPORTS HEROES INC SAID IT SIGNED AN AGREEMENT WITH BROADCASTING PERSONALITY JOE FRANKLIN TO MARKET HIS PERSONAL COLLECTION OF ENTERTAINMENT MEMORABILIA SPORTS HEROES WHICH MARKETS SPORTS COLLECTIBLES SAID THAT ONE OF ITS UNITS WOULD RECEIVE A 51 INTEREST IN ENTERTAINMENT LEGENDS LP IN EXCHANGE FOR SPORTS HEROES COMMON STOCK A UNIT OF JOE FRANKLIN PRODUCTIONS INC WILL OWN THE OTHER 49 THE COLLECTION OF MOVIES RECORDS BOOKS PHOTOS AND OTHER ITEMS WHICH MR FRANKLIN AMASSED DURING THE PAST 43 YEARS TOTALS HUNDREDS OF THOUSANDS OF ITEMS AND WILL TAKE ABOUT SEVEN MONTHS TO ORGANIZE AND APPRAISE SPORTS HEROES SAID AS A RESULT THE ORADEL NJ COMPANY SAID IT DOESN'T EXPECT TO GENERATE REVENUE FROM THE MATERIALS UNTIL THE SECOND OR THIRD QUARTER OF 1994 THE COLLECTION IS BELIEVED TO BE WORTH SEVERAL MILLION DOLLARS SPORTS HEROES SAID 9311050036 931105 BUSINESS BRIEF COUNTRYWIDE MORTGAGE INVESTMENTS REIT PLANS AN SEC FILING FOR SALE OF COMMON STOCK COUNTRYWIDE MORTGAGE INVESTMENTS INC PASADENA CALIF SAID IT PLANS TO FILE IN THE NEAR FUTURE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF ABOUT SEVEN MILLION COMMON SHARES THE REAL ESTATE INVESTMENT TRUST SAID IT HAS ABOUT 243 MILLION SHARES OUTSTANDING NOW PROCEEDS FROM THE OFFERING WOULD BE USED TO EXPAND THE COMPANY'S SPECIALIZED MORTGAGEBANKING OPERATIONS THE ANTICIPATED OFFERING WAS DISCLOSED IN PRELIMINARY PROXY MATERIALS FILED WITH THE SEC AT A SPECIAL MEETING SET FOR DEC 9 THE COMPANY PLANS TO ASK SHAREHOLDERS TO APPROVE A PROPOSAL TO DOUBLE THE NUMBER OF AUTHORIZED SHARES TO 60 MILLION FROM 30 MILLION 9311050035 931105 FOREIGN EXCHANGE DOLLAR BULLS BRACE FOR POSSIBLE RALLY ON RELEASE OF US JOBS AND OTHER DATA BY BENJAMIN DOLVEN SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR PUSHED SLIGHTLY HIGHER AGAINST MOST MAJOR CURRENCIES THURSDAY AS DOLLAR BULLS BRACED THEMSELVES FOR A POSSIBLE RALLY FOLLOWING RELEASE FRIDAY OF US EMPLOYMENT DATA LATE THURSDAY IN NEW YORK THE DOLLAR WAS QUOTED AT 16955 MARKS UP A BIT FROM 16925 MARKS LATE WEDNESDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10818 YEN UP FROM 10768 YEN STERLING WAS TRADING AT 14810 OFF FROM 14825 ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10843 YEN AND AT 16945 MARKS DEALERS SAID TRADING WAS RELATIVELY QUIET WITH MOST OF THE DAY'S ACTION COMING FROM PARTICIPANTS TAKING SHORTTERM LONG POSITIONS IN THE DOLLAR BETTING THAT THE US CURRENCY WILL STRENGTHEN IN THE NEAR TERM THE UPWARD MOVE COMING AHEAD OF FRIDAY'S RELEASE OF US NONFARM PAYROLLS AND UNEMPLOYMENT DATA FOR OCTOBER INDICATES THE MARKET'S UNABASHED OPTIMISM ABOUT THE US CURRENCY'S IMMEDIATE PROSPECTS WITH OR WITHOUT A STRONG EMPLOYMENT REPORT THE MARKET HAS ALREADY BEGUN TO ANTICIPATE A HIGHER MOVE BY THE DOLLAR INDEPENDENT OF THE JOBS NUMBER SAID JOHN NELSON DIRECTOR OF GLOBAL FOREIGN EXCHANGE AT BARCLAYS BANK PLC IN NEW YORK IT USED TO BE THAT WE NEEDED A REALLY GOOD NUMBER TO GET THE DOLLAR UP SAID CYRUS WHITNEY CHIEF FOREIGNEXCHANGE TRADER AT COMMERZBANK IN NEW YORK THAT'S NOT THE CASE ANY MORE THE MARKET IS EXPECTING THE REPORT TO SHOW THAT ALTHOUGH US ECONOMIC ACTIVITY IS GATHERING MOMENTUM THE NATION'S JOB GROWTH CONTINUES AT ONLY A MODERATE PACE MARKET EXPECTATIONS ARE FOR AN INCREASE OF 154000 JOBS LITTLE CHANGED FROM A 156000JOB GAIN IN SEPTEMBER EXPERTS SEE THE UNEMPLOYMENT RATE REMAINING UNCHANGED FROM SEPTEMBER AT 67 THOUGH IT WOULDN'T INDICATE A BROAD EMPLOYMENTBASED RECOVERY SUCH A REPORT WOULD BE ENOUGH TO PUSH THE DOLLAR HIGHER NEW YORK DEALERS SAID TECHNICALLY SPEAKING THE DOLLAR COULD GO TO 17225 MARKS ON A GOOD REPORT SAID BARCLAYS' MR NELSON IF THE PAYROLLS NUMBER COMES IN WORSE THAN EXPECTED THE MARKET WILL STILL LOOK TO BUY THE DOLLAR ON DIPS MR NELSON ADDED ASSERTING THAT TECHNICAL SUPPORT WILL BE FOUND AT 16890 MARKS WITH STRONG SUPPORT AT 16650 MARKS ECONOMISTS NOTED THAT THE DOLLAR COULD DERIVE PARTICULAR STRENGTH FROM A PICKUP IN MANUFACTURING EMPLOYMENT EVEN IF THE OVERALL PAYROLL FIGURE TRAILS EXPECTATIONS A BOOST IN MANUFACTURING EMPLOYMENT HAS BEEN A CRUCIAL MISSING LINK IN THE RECENT ECONOMIC RECOVERY IN THE US THE DOLLAR'S RESPONSE DEPENDS ON THE COMPOSITION OF THE DATA SAID ERIC NICKERSON CHIEF ECONOMIST AT BANK OF AMERICA IF THE MANUFACTURING SECTOR COULD POST A GAIN THAT COULD BE POSITIVE FOR THE DOLLAR IN AND OF ITSELF HE ADDED THE DOLLAR MADE ITS STRONGEST GAINS THURSDAY AGAINST THE YEN DEALERS SUGGESTED THAT THE JAPANESE STOCK MARKET'S SHARP DECLINE MAY HAVE HURT THE JAPANESE CURRENCY BY MAKING NONJAPANESE INVESTORS NERVOUS ABOUT THEIR YENBASED INVESTMENTS THE NIKKEI 225STOCK INDEX TUMBLED 43145 POINTS TO CLOSE AT 1894979 THURSDAY THE FIRST TIME IT HAD CLOSED BELOW 19000 SINCE MARCH 31 9311050034 931105 BUSINESS BRIEF REX STORES CORP RETAILER'S SALES GAINED 28 IN OCTOBER AND THIRD PERIOD REX STORES CORP SAID OCTOBER SALES ROSE 28 TO 208 MILLION FROM 162 MILLION A YEAR EARLIER COMPARABLESTORE SALES ROSE 9 TO 169 MILLION FROM 155 MILLION COMPARABLE STORES ARE THOSE OPEN FOR FOUR FISCAL QUARTERS THE COMPANY IN DAYTON OHIO SAID SALES IN THE THIRD QUARTER ENDED OCT 31 INCREASED 28 TO 596 MILLION FROM 465 MILLION A YEAR EARLIER COMPARABLESTORE SALES IN THE QUARTER ROSE 10 IN THE FIRST NINE MONTHS OF FISCAL 1994 REX STORES HAD TOTAL SALES OF 1704 MILLION UP 27 FROM 134 MILLION A YEAR AGO COMPARABLESTORE SALES IN THE YEARTODATE INCREASED 10 THE COMPANY SAID REX STORES IS A SPECIALTY RETAILER OF CONSUMER ELECTRONICS PRODUCTS AND APPLIANCES IT OPERATES 117 STORES IN 23 STATES 9311050033 931105 QVC IS SEEN CUTTING ITS TIES WITH LIBERTY BELLSOUTH CORP IS EXPECTED TO JOIN AS AN INVESTOR IN BID FOR PARAMOUNT BY JOHNNIE L ROBERTS AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK QVC NETWORK INC IS EXPECTED TO CUT ITS TIES TO LIBERTY MEDIA INC A BIG AND CONTROVERSIAL SHAREHOLDER THAT POSES A POTENTIAL OBSTACLE TO ITS BID FOR PARAMOUNT COMMUNICATIONS INC AND BRING IN BELLSOUTH CORP AS AN INVESTOR IN THE DEAL IN ADDITION OTHERS MAY INVEST IN THE DEAL ADVANCE PUBLICATIONS INC A CLOSELY HELD COMPANY OWNED BY THE NEWHOUSE FAMILY THAT ALREADY HAS AGREED TO TAKE A STAKE IN QVC MAY INCREASE ITS INVESTMENT ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION UNDER A PROPOSAL BEING DISCUSSED BY QVC AND BELLSOUTH THE ATLANTABASED REGIONAL TELEPHONE COMPANY WOULD ACQUIRE LIBERTY MEDIA'S 22 STAKE IN QVC AND INVEST AN ADDITIONAL 1 BILLION IN QVC EXECUTIVES CLOSE TO THE SITUATION SAID AN ANNOUNCEMENT COULD COME AS EARLY AS TODAY THE MOVES WHICH WOULD COST BELLSOUTH ABOUT TWO BILLION DOLLARS ARE DESIGNED TO DEFUSE POSSIBLE FEDERAL ANTITRUST CONCERNS ABOUT QVC'S BID FOR PARAMOUNT THE ENTERTAINMENT AND PUBLISHING GIANT AND THE PROPOSAL WOULD GIVE QVC MORE CASH TO RAISE ITS 98 BILLION PARAMOUNT OFFER BELLSOUTH AND QVC A HOMESHOPPING CONCERN HAVE BEEN HOLDING TALKS ON AND OFF FOR WEEKS AS BELLSOUTH SEEKS A WAY TO GET INTO THE BIDDING WAR FOR PARAMOUNT AND QVC'S CHIEF EXECUTIVE OFFICER BARRY DILLER CONSIDERS WHETHER TO SEEK ADDITIONAL INVESTORS TO BOLSTER HIS BID MR DILLER MUST DECIDE SOON WHETHER TO INCREASE HIS BID TO TOP A FRIENDLY OFFER BY VIACOM INC WHOSE BID FOR PARAMOUNT IS NOW ROUGHLY EQUIVALENT TO QVC'S QVC AND BELLSOUTH OFFICIALS DECLINED TO DISCUSS THEIR TALKS AND LIBERTY OFFICIALS ALSO DECLINED TO COMMENT ADVANCE PUBLICATIONS HAS AGREED TO INVEST 500 MILLION IN QVC TO SUPPORT ITS BID FOR PARAMOUNT ADVANCE PUBLICATIONS EXECUTIVES COULDN'T BE REACHED FOR COMMENT SEVERAL EXECUTIVES CLOSE TO THE DEVELOPMENTS EMPHASIZED THAT THE SITUATION IS EXTREMELY FLUID WITH LOTS OF MOVING PARTS AS ONE PUT IT MOREOVER THEY SAID THAT A REPLACEMENT OF LIBERTY BY BELLSOUTH IS ONE OF SEVERAL OPTIONS QVC IS CONSIDERING TO IMPROVE ITS POSITION IN THE HEATED CONTEST FOR PARAMOUNT BUT THE LATEST TALKS WITH BELLSOUTH SIGNAL QVC'S DESIRE TO REMOVE LIBERTY AS A POSSIBLE ANTITRUST HURDLE TO QVC'S TWOSTEP TENDER OFFER VALUED AT 7853 A SHARE IN CASH AND QVC STOCK QVC EXPECTS TO RECEIVE A REQUEST TODAY FOR ADDITIONAL INFORMATION FROM THE FEDERAL TRADE COMMISSION WHICH IS REVIEWING QVC'S OFFER FOR ANTITRUST CLEARANCE ACCORDING TO PEOPLE CLOSE TO THE DEVELOPMENTS QVC'S STRATEGISTS BELIEVE THAT QVC'S CHANCES OF WITHSTANDING FTC REVIEW WOULD BE GREATLY IMPROVED BY ELIMINATING THE ROLE OF LIBERTY MEDIA WHICH IS PART OF THE CABLETELEVISION EMPIRE MANAGED AND PARTLY CONTROLLED BY JOHN C MALONE CHAIRMAN OF LIBERTY AND CHIEF EXECUTIVE OFFICER OF TELECOMMUNICATIONS INC TCI THE NATION'S BIGGEST CABLETV COMPANY HAS BEEN REPEATEDLY ACCUSED BY THE INDUSTRY'S CRITICS OF ENGAGING IN ANTICOMPETITIVE BEHAVIOR AND AS PART OF AN EFFORT TO REPEL THE QVC BID VIACOM HAS FILED AN ANTITRUST LAWSUIT CHARGING QVC LIBERTY MEDIA AND MR MALONE WITH ATTEMPTING TO MONOPOLIZE THE CABLETV BUSINESS THE SALE OF LIBERTY'S QVC STAKE WOULD ALSO CUT QVC'S TIE TO BELLSOUTH RIVAL BELL ATLANTIC CORP WHICH PLANS TO ACQUIRE BOTH TCI AND LIBERTY BELLSOUTH HAD VIEWED BELL ATLANTIC'S INVOLVEMENT AS AN OBSTACLE TO MAKING AN INVESTMENT IN QVC ACCORDING TO PEOPLE ON WALL STREET IN ADDITION TO ACQUIRING LIBERTY'S STAKE BELLSOUTH IN THE PROPOSAL BEING DISCUSSED WOULD REPLACE A 500 MILLION INVESTMENT BY LIBERTY IN QVC'S BID FOR PARAMOUNT IT WOULD THEN KICK IN AN ADDITIONAL 500 MILLION SO THAT QVC COULD SWEETEN ITS BID FOR PARAMOUNT LIBERTY OWNS 22 OF QVC A STAKE THAT RISES TO 269 OR 121 MILLION SHARES ON A FULLY DILUTED BASIS ACCORDING TO ANALYST LISBETH BARRON OF SG WARBURG & CO A BUYOUT OF LIBERTY'S QVC STAKE AT THE CURRENT MARKET PRICE WOULD COST BELLSOUTH 655 MILLION PEOPLE CLOSE TO MR DILLER SAID THE NEGOTIATIONS WITH BELLSOUTH HAVE BEEN DIFFICULT IN PART BECAUSE HE IS RELUCTANT TO BRING IN YET ANOTHER NEW PARTNER COMCAST CORP A LONGTIME QVC SHAREHOLDER ADVANCE PUBLICATIONS AND COX ENTERPRISES INC ARE ALREADY INVESTORS IN QVC PROVIDING 500 MILLION EACH FOR THE BID BELLSOUTH HAS BEEN EAGER TO TAKE A MORE ACTIVE ROLE AS AN INVESTOR IN QVC THAN MR DILLER WANTS BUT MR DILLER IS DETERMINED THAT HIS CONTROL OVER THE COMPANY NOT BE WEAKENED THE PEOPLE SAID MR DILLER AND HIS PARTNERS AND STRATEGISTS ARE ALSO PREOCCUPIED WITH TRYING TO DETERMINE HOW MUCH TO RAISE QVC'S BID SOME ANALYSTS AND TRADERS HAVE PREDICTED THAT THE BIDDING FOR PARAMOUNT COULD TOP 11 BILLION OR 90 A SHARE BUT THE QVC CAMP IS SAID TO BE TRYING TO DETERMINE WHETHER SUCH A LOFTY PRICE WOULD LEAVE A COMBINED QVCPARAMOUNT UNDULY BURDENED WITH DEBT AND WHETHER MR DILLER COULD GENERATE AN ACCEPTABLE RETURN ON AN INVESTMENT OF THAT MAGNITUDE CUTTING THE TIE TO LIBERTY WOULD RAISE THE QUESTION OF WHETHER QVC COULD BE EQUALLY SURE OF GETTING NEW QVC CABLE CHANNELS AND SERVICES ONTO CABLE SYSTEMS WITHOUT THE BACKING OF TCI AND MR MALONE BUT MS BARRON THE ANALYST SAID I DON'T BELIEVE THERE'S A TREMENDOUS AMOUNT TO BE LOST BY NOT HAVING AUTOMATIC ACCESS TO TCI'S SYSTEMS THE TCI SYSTEMS COULD SIMPLY NEGOTIATE FOR QVC PROGRAMMING LIKE ANY OTHER CABLE SYSTEMS MS BARRON ADDED THAT THE SALE OF THE LIBERTY STAKE WOULD GO A LONG WAY TOWARD RESOLVING THE ANTITRUST ISSUES IN THE QVC BID FOR PARAMOUNT QVC NEEDS TO RESOLVE ANY QUESTIONS RELATED TO ITS BID QUICKLY SO THAT IT CAN COMPLETE ITS TENDER OFFER WITHOUT EXTRA DELAYS IF AS EXPECTED IT RAISES ITS BID TO TOP VIACOM'S SOMETIME NEXT WEEK THE FTC IS EXPECTED TO COMPLETE ITS INITIAL ANTITRUST REVIEW OF QVC'S BID BY TODAY IF AS EXPECTED THE FTC ASKS FOR MORE INFORMATION THAT COULD PUT QVC AT A TIME DISADVANTAGE AGAINST VIACOM IN THE BATTLE FOR CONTROL OF PARAMOUNT CUTTING QVC'S TIE TO LIBERTY COULD REDUCE THE FTC'S NEED FOR ADDITIONAL INFORMATION YESTERDAY QVC'S STOCK PRICE TUMBLED AS SOME TRADERS CONCLUDED BASED ON RUMORS ABOUT THE BELLSOUTH TALKS THAT QVC'S CHANCES OF WINNING THE BIDDING CONTEST WERE RISING IN COMPOSITE TRADING ON THE NASDAQ STOCK MARKET QVC STOCK FELL 275 A SHARE TO 54 THAT CUT THE VALUE OF QVC'S CASHANDSTOCK BID FOR PARAMOUNT TO 98 BILLION OR 7853 A SHARE VIACOM'S CASHANDSTOCK BID IS CURRENTLY VALUED AT 7911 A SHARE TRADERS BELIEVE QVC WILL RAISE ITS BID SOMETIME BETWEEN NEXT WEDNESDAY AND NOV 16 THE LATER DATE IS WHEN QVC PARAMOUNT AND VIACOM ARE DUE TO MEET IN COURT AND BOTH QVC AND VIACOM WOULD WANT TO HAVE THEIR BEST BIDS ON THE TABLE BY THEN 9311050032 931105 YOUR MONEY MATTERS WEEKEND REPORT MUNICIPAL BONDS BLOSSOM UNDER NEW TAX LAW BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL FOR SAFETYFIRST INVESTORS WORRIED ABOUT HIGHER TAXES AND ROCKBOTTOM RETURNS ON CERTIFICATES OF DEPOSIT IT'S TIME TO TAKE A FRESH LOOK AT TAXFREE MUNICIPAL BONDS WHILE MUNICIPAL BONDS MAY LACK THE SPARKLE AND GLAMOUR OF STOCKS FINANCIAL ADVISERS SAY MANY TYPES OF MUNIS LOOK UNUSUALLY ATTRACTIVE THESE DAYS THANKS LARGELY TO THE NEW TAX LAW AND A RECORD WAVE OF NEW MUNICIPAL ISSUES FLOODING THE MARKET THIS YEAR TAXFREE BONDS NOW OFFER YIELDS THAT ARE EXCEPTIONALLY GENEROUS COMPARED WITH THOSE AVAILABLE ON TAXABLE BONDS FOR EXAMPLE SOME SEVENYEAR TAXFREE BONDS WITH HIGH CREDIT RATINGS NOW YIELD ABOUT 45 SEVENYEAR TREASURY NOTES YIELD ABOUT 53 BUT FOR AN INVESTOR IN THE 36 FEDERAL TAX BRACKET THAT 53 ON THE TREASURY NOTE SHRINKS TO ONLY 34 AFTER TAXES OR ABOUT ONE FULL PERCENTAGE POINT LESS THAN THE MUNI ISSUE OFFERS BUT DON'T RUSH HEADLONG INTO MUNIS THIS 12 TRILLION MARKET CAN BE SURPRISINGLY TRICKY ESPECIALLY FOR INVESTORS WHO NEED TO BE ABLE TO SELL THEIR BONDS IN A HURRY ALSO BE ESPECIALLY CAREFUL ABOUT BUYING MUTUALFUND SHARES AT THIS TIME OF YEAR WITHOUT CLOSE INVESTIGATION OTHERWISE YOU MAY FALL INTO A PAINFUL YEAREND TAX TRAP MUNICIPAL BONDS OFTEN SPARKLE AROUND THIS TIME OF YEAR COMPARED WITH TAXABLE BONDS CHRISTOPHER M DILLON VICE PRESIDENT AT JP MORGAN SECURITIES INC SAYS MUNICIPALS HAVE OUTPERFORMED TREASURY BONDS FOR FOUR OF THE PAST FIVE YEARS FROM THE FIRST WEEK OF OCTOBER TO THE FIRST WEEK OF FEBRUARY THIS YEAR SOME NEW FACTORS ARE ADDING TO THE LUSTER NO 1 TAX RATES ARE GOING UP AND ARE LIKELY TO CONTINUE TO RISE MAKING TAXEXEMPT INCOME MORE ATTRACTIVE TO MOST HIGHNETWORTH INVESTORS SAYS MARSHALL B FRONT SENIOR EXECUTIVE VICE PRESIDENT OF STEIN ROE & FARNHAM INC A CHICAGOBASED INVESTMENTCOUNSELING AND MUTUALFUNDMANAGEMENT COMPANY IN ADDITION FEWER NEW TAXFREE BONDS ARE LIKELY TO BE ISSUED NEXT YEAR THAN THIS YEAR SAYS DAVID MURPHY OF BOSTONBASED FIDELITY INVESTMENTS THAT REDUCED SUPPLY IS APT TO MEET INCREASED DEMAND A LARGE VOLUME OF MUNICIPAL BONDS ISSUED YEARS AGO WHEN INTEREST RATES WERE MUCH HIGHER WILL BE CALLED OR REDEEMED BY THEIR ISSUERS IN JANUARY FORCING INVESTORS BACK INTO THE MARKET TO REDEPLOY THE PROCEEDS OF THOSE REDEMPTIONS ONE WAY INVESTMENT PROFESSIONALS GAUGE WHETHER MUNICIPAL BONDS ARE A GOOD BUY IS TO COMPARE TAXFREE BOND YIELDS AGAINST TREASURY YIELDS ON THAT BASIS MUNICIPAL BONDS CURRENTLY LOOK CHEAP SAYS GEORGE FRIEDLANDER MANAGING DIRECTOR AND FIXEDINCOME STRATEGIST OF SMITH BARNEY SHEARSON STILL INVESTMENT PROS CAUTION AGAINST BUYING LONGTERM MUNIS IF INTEREST RATES SURGE LONGTERM BOND PRICES WOULD FALL THE HARDEST THOMAS J CONLIN PORTFOLIO MANAGER AT STRONG FUNDS IN MENOMONEE FALLS WIS AND MANY OTHER INVESTMENT STRATEGISTS RECOMMEND INTERMEDIATETERM BONDS WHICH CURRENTLY OFFER AROUND 80 OR MORE OF THE YIELDS ON LONGERTERM BONDS BUT WITH MUCH LESS MARKET RISK MUNICIPALBOND SPECIALISTS ALSO ADVISE RESISTING THE TEMPTATION TO REACH FOR THE HIGHESTYIELDING BONDS AVAILABLE THOSE WITH LOWCREDIT RATINGS OR NO RATING AT ALL YIELDS ON THESE BONDS SIMPLY AREN'T HIGH ENOUGH TO PAY INVESTORS FOR THE ADDITIONAL RISKS INVESTMENT MANAGERS SAY I WOULD STRONGLY URGE ANYONE TO TILT TOWARD HIGHQUALITY BONDS BECAUSE THE GAP BETWEEN YIELDS ON HIGHRATED AND LOWRATED BONDS IS TINY SAYS JAMES J COONER SENIOR VICE PRESIDENT AT BANK OF NEW YORK THIS IS A MARKET WHERE YOU CAN FLY FIRST CLASS FOR ONLY 5 EXTRA SOME RISKAVERSE INVESTORS PREFER PREREFUNDED MUNICIPALS WHICH TYPICALLY ARE BACKED BY TREASURYS AND RATED TRIPLEA IN A TYPICAL PREREFUNDING A MUNICIPALITY ISSUES NEW BONDS TO PAY OFF OLDER HIGHERYIELDING BONDS AT THE EARLIEST AVAILABLE DATE PROCEEDS FROM THE SALE OF THE NEW BONDS TYPICALLY ARE INVESTED IN TREASURYS SOME PREREFUNDED ISSUES NOW YIELD 015 PERCENTAGE POINT ABOVE COMPARABLE HIGHGRADE MUNIS SAYS FRANK SCARAGGI A MANAGING DIRECTOR AT LEHMAN BROTHERS HE CALLS THEM ONE OF THE BEST AND SAFEST INVESTMENTS IN THE MUNICIPAL MARKET BONDS BACKED BY PRIVATE INSURANCE COMPANIES ALSO ARE VERY POPULAR BOND INSURANCE OFFERS DOUBLEBARRELED VALUE BECAUSE YOU HAVE TWO INDEPENDENT SOURCES OF REPAYMENT AND SECURITY SAYS RICHARD CICCARONE SENIOR VICE PRESIDENT AT KEMPER SECURITIES INC IN CHICAGO HE ALSO SAYS INSURED BONDS GENERALLY PROVIDE BETTER LIQUIDITY AN IMPORTANT CONSIDERATION FOR INVESTORS WHO MAY NEED TO SELL THEIR BONDS IN THE SECONDARY OR RESALE MARKETS INVESTORS IN AREAS WITH VERY HIGH TAXES SUCH AS NEW YORK CITY MAY WANT TO PAY SPECIAL ATTENTION TO BONDS ISSUED BY THEIR HOME STATE OR THE MUNICIPALITIES WITHIN IT THAT'S BECAUSE INVESTORS WHO BUY INSTATE BONDS TYPICALLY DON'T OWE FEDERAL STATE OR LOCAL TAXES ON THE INTEREST INCOME BECAUSE OF THE NEW TAX LAW SOME UPPERINCOME NEW YORK CITY RESIDENTS WILL DISCOVER THEIR COMBINED FEDERAL STATE AND CITY MARGINAL TAX RATE IS ABOUT 50 THUS BOLSTERING THE CASE FOR TAXFREE BONDS SAYS ROBERT GARNER OF ERNST & YOUNG THE BIG ACCOUNTING FIRM HE ADDS THAT RESIDENTS OF OTHER MAJOR METROPOLITAN AREAS INCLUDING LOS ANGELES SAN FRANCISCO AND WASHINGTON ALSO HAVE AMONG THE HIGHEST TAX RATES IN THE NATION EVEN IN PLACES WHERE LOWER TAX RATES REDUCE THE VALUE OF THE INSTATE EXEMPTION SOME PEOPLE STILL PREFER BUYING INSTATE BONDS BECAUSE IT MEANS FEWER ACCOUNTING HASSLES AT TAX TIME IF YOU THINK YOU MIGHT NEED TO RESELL BONDS BEFORE MATURITY STICK WITH THOSE OF WELLKNOWN ISSUERS AVOID OBSCURE ISSUES THAT TRADE ONLY BY APPOINTMENT ADVISES MR FRONT WIDELY KNOWN ISSUES INCLUDE GENERAL OBLIGATION BONDS THOSE BACKED BY THE ISSUER'S ABILITY TO LEVY TAXES TO PAY THE PRINCIPAL AND INTEREST OF MAJOR STATES SUCH AS CALIFORNIA NEW YORK AND OHIO ALSO WELL KNOWN ARE BONDS OF SUCH MAJOR AGENCIES AS THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHEN IN DOUBT ASK A DEALER HOW ACTIVE THE SECONDARY MARKET IS FOR AN ISSUE AND CHECK WHAT YOU ARE TOLD WITH ANOTHER MUNIBOND SPECIALIST SOME SOPHISTICATED INVESTORS RECOMMEND PREMIUM BONDS THOSE THAT SELL FOR MORE THAN FACE VALUE THESE BONDS OFTEN OFFER SLIGHTLY HIGHER YIELDS BECAUSE MANY INDIVIDUAL INVESTORS DON'T UNDERSTAND HOW THEY WORK AND WON'T BUY THEM ALSO PREMIUM BONDS TYPICALLY ARE LESS SENSITIVE TO INTERESTRATE INCREASES THAN BONDS TRADING AT A DISCOUNT OR AT PAR ACCORDING TO ERNST & YOUNG LOOKING FOR SPECIFIC SUGGESTIONS MR FRONT SAYS SOMEONE WITH 100000 TO INVEST MIGHT BUY FOUR SEPARATE ISSUES EACH FOR 25000 THAT ARE SCHEDULED TO COME DUE IN THREE FIVE SEVEN AND 10 YEARS HIS LATEST SUGGESTIONS FOR A CONSERVATIVE INVESTOR WITH MORE THAN 100000 TO INVEST ARE PITTSBURGH WATER & SEWER REVENUE BONDS SCHEDULED TO MATURE SEPT 1 1996 AND RECENTLY YIELDING ABOUT 36 WASHINGTON STATE GENERAL OBLIGATION BONDS SCHEDULED TO MATURE SEPT 1 1998 AND RECENTLY YIELDING ABOUT 42 WISCONSIN STATE TRANSPORTATION REVENUE BONDS SCHEDULED TO MATURE JULY 1 2000 AND RECENTLY YIELDING ABOUT 45 LAFAYETTE LA PUBLIC POWER AUTHORITY ELECTRIC REVENUE BONDS SCHEDULED TO MATURE IN 2003 AND RECENTLY YIELDING ABOUT 48 FOR MANY INVESTORS MUTUAL FUNDS OFFER THE ONLY REALISTIC WAY TO CREATE A DIVERSIFIED MUNIBOND PORTFOLIO BECAUSE INDIVIDUAL TAXFREE BONDS ARE TYPICALLY SOLD IN MINIMUM DENOMINATIONS OF 5000 MUTUAL FUNDS ALSO OFFER PROFESSIONAL MANAGEMENT BUT BEWARE OF BONDMUTUAL FUNDS AT THIS TIME OF YEAR BECAUSE OF THE CAPITALGAINS PAYOUT TRAP LIKE MOST TAXABLE STOCK AND BOND FUNDS MUNICIPALBOND FUNDS TYPICALLY DISTRIBUTE CAPITAL GAINS TO SHAREHOLDERS LATE EACH YEAR OFTEN IN DECEMBER THESE GAINS ARE FULLY TAXABLE TO SHAREHOLDERS EVEN IF THE FUND ITSELF INVESTS SOLELY IN BONDS THAT PAY TAXFREE INTEREST INCOME UNSUSPECTING INVESTORS WHO PLUNK 10000 INTO A TAXFREE FUND THIS MONTH OR NEXT MAY BE HIT BY A 1993 TAX BILL ON MONEY THEY JUST INVESTED TO AVOID THIS PROBLEM BE SURE TO ASK THE FUND YOU ARE CONSIDERING WHETHER IT PLANS TO MAKE A CAPITALGAINS DISTRIBUTION ANYTIME SOON OR WHETHER IT ALREADY HAS PAID ONE THIS QUESTION IS PARTICULARLY IMPORTANT THIS YEAR BECAUSE FALLING INTEREST RATES HAVE CREATED HUGE CAPITAL GAINS IF A FUND HAS AMASSED BIG CAPITAL GAINS THAT WILL BE PAID IN DECEMBER CONSIDER ANOTHER FUND OR PARK YOUR MONEY ELSEWHERE AT LEAST TEMPORARILY TAX ADVISERS SAY FOR EXAMPLE RISKAVERSE INVESTORS MIGHT CONSIDER TAXFREE MONEYMARKET FUNDS WHICH DON'T HAVE CAPITAL GAINS OR SHORTTERM FUNDS TAXFREE MONEY FUNDS NOW YIELD ABOUT 2 WHICH IS EQUIVALENT TO A TAXABLE YIELD OF 31 FOR INVESTORS IN THE 36 FEDERAL TAX BRACKET INVESTORS SEEKING SOMEWHAT HIGHER RETURNS WITH LITTLE RISK MIGHT CONSIDER FUNDS THAT INVEST IN MUNICIPAL DEBT WITH DOLLARWEIGHTED AVERAGE MATURITIES OF LESS THAN FIVE YEARS THE AVERAGE YIELD IN THE PAST 12 MONTHS ON 30 OF THESE FUNDS MONITORED BY LIPPER ANALYTICAL SERVICES INC WAS 43 WHICH MANAGED TO BEAT INFLATION THEIR AVERAGE TOTAL RETURN FOR THE FIVE YEARS ENDED SEPT 30 WAS 3945 WELL AHEAD OF INFLATION LIPPER REPORTS VANGUARD MUNICIPAL LIMITEDTERM FUND HAS ACHIEVED THE BEST INVESTMENT PERFORMANCE FOR THE PAST FIVE YEARS AMONG THE NOLOAD SHORTTERM MUNICIPAL FUNDS MONITORED BY LIPPER A NOLOAD FUND IS ONE THAT DOESN'T CHARGE A SALES COMMISSION THE VANGUARD FUND'S TOTAL RETURN WAS 4327 THE TOPRANKED FUND OF ALL INCLUDING BOTH LOAD AND NOLOAD FUNDS WAS FLAGSHIP TAXEXEMPT LIMITED TERM FUND WITH A 4996 TOTAL RETURN 9311050030 931105 EVEN SOME SMALL FIRMS ARE ACCUSED OF VIOLATIONS IT ISN'T JUST INDUSTRY GIANTS THAT TRY TO SKIRT US PROHIBITIONS AGAINST PAYING SECRET COMMISSIONS TO WIN FOREIGN DEFENSE CONTRACTS DETROIT ARMOR CORP A SMALL NOWDEFUNCT FIRM BASED IN SCHAUMBURG ILL PAID AN EGYPTIAN MIDDLEMAN 92000 IN ILLEGAL COMMISSIONS TO LAND AN INDOOR RIFLERANGE CONTRACT ACCORDING TO JUSTICE DEPARTMENT DOCUMENTS FILED IN FEDERAL COURT IN CHICAGO THE CONSULTANT HASSAN EL AGUIZY ALSO ARRANGED MEETINGS WITH AN EGYPTIAN GENERAL WHO WAS TO FEED THE COMPANY INSIDE BIDDING INFORMATION ON A LARGER TANKFIRING RANGE CONTRACT WILLIAM ANGERBRANDT A FORMER DETROIT ARMOR EXECUTIVE SAYS HE FIRST MET GEN KHATER ABDULLAH AT A SWANK CAIRO HOTEL HE WALKED IN LOOKED AROUND 360 DEGREES LIKE HE WAS SCANNING THE ROOM FOR EAVESDROPPING EQUIPMENT MR ANGERBRANDT SAYS OF THE MEETING FIVE YEARS AGO THEN HE SAID I DON'T LIKE THIS ARRANGEMENT' AND LEFT TO HUMOR THE JITTERY OFFICER MR ANGERBRANDT MOVED TO A TOURIST HOTEL ON THE BANKS OF THE NILE LESS LIKELY TO HAVE HIDDEN MICROPHONES NEVERTHELESS THE GENERAL WAS VERY LEERY OF EVERYTHING THE US EXECUTIVE SAYS AND WOULDN'T TALK UNTIL THE DOOR WAS BARRICADED WITH A TABLE I FELT LIKE I WAS IN A JAMES BOND MOVIE SAYS MR ANGERBRANDT IT WAS SURREAL BUT BEFORE A DEAL COULD BE STRUCK PENTAGON INVESTIGATORS NAILED THE COMPANY FOR ITS INITIAL PAYMENTS TO THE CONSULTANT UNDER A 1991 PLEA BARGAIN THE COMPANY RENAMED DARMOR CORP PAID 700000 IN CIVIL AND CRIMINAL PENALTIES ITS PRESIDENT ALSO PLEADED GUILTY TO FRAUDRELATED CHARGES NEITHER GEN ABDULLAH NOR MR AGUIZY COULD BE REACHED FOR COMMENT SEE RELATED ARTICLE BUYING BUSINESS SOME WEAPONS MAKERS ARE SAID TO CONTINUE ILLICIT FOREIGN OUTLAYS NOW A SERIES OF INVESTIGATIONS IS UNDER WAY IN AN EFFORT TO ENFORCE THE 1977 BAN SCRAMBLE IN AN AILING INDUSTRY WSJ NOV 5 1993 9311050029 931101 CORPORATE PERFORMANCE 1993 REVIEW 3RD QUARTER INDUSTRYBYINDUSTRY QUARTERLY EARNINGS THE COLUMNS BELOW SHOW BY INDUSTRIES EARNINGS REPORTED FOR THE THIRD QUARTER OF 1993 AND THOSE FOR THE LIKE QUARTER OF 1992 WITH PERCENTAGE CHANGES WHERE INDIVIDUAL COMPANY REPORTS COVER THREEMONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE PERIODS HAVE BEEN USED FOR ALL DOLLAR FIGURES 000S HAVE BEEN OMITTED THE TABLE REFLECTS THE FACT THAT MANY COMPANIES HAVE CLOSED DOWN FACILITIES SOLD OFF ASSETS OR OTHERWISE RESTRUCTURED OPERATIONS THE NET INCOME COLUMNS INCLUDE BOTH INCOME FROM OPERATIONS AND THE GAINS OR LOSSES ASSOCIATED WITH SUCH MOVES THE NET ON CONTINUING OPERATIONS COLUMNS INSOFAR AS POSSIBLE EXCLUDE SUCH GAINS AND LOSSES IN CASES IN WHICH THE AFTERTAX GAINS OR LOSSES HAVEN'T BEEN REPORTED THEY ARE RETAINED IN NET ON CONTINUING OPERATIONS THE INTENT IS TO SHOW HOW EACH INDUSTRY WOULD HAVE FARED IF ITS COMPANIES THROUGHOUT THE QUARTER HAD BEEN STRUCTURED AS THEY WERE AT THE END OF THE PERIOD 9311050028 931105 TANDY SALES ROSE 18 IN OCTOBER FORT WORTH TEXAS TANDY CORP SAID ITS OCTOBER RETAIL SALES ROSE 18 TO 3171 MILLION FROM 2687 MILLION A YEAR EARLIER SALES FOR STORES OPEN MORE THAN ONE YEAR ROSE 8 THE COMPANY DECLINED TO PROVIDE YEARTODATE SALES INFORMATION 9311050027 931105 SOLO SERVE POSTS 78 SALES JUMP SAN ANTONIO SOLO SERVE CORP SAID SALES FOR THE FOUR WEEK PERIOD ENDED OCT 30 INCREASED 78 TO 11 MILLION FROM 102 MILLION A YEAR EARLIER SAMESTORE SALES INCREASED 09 YEARTODATE SALES ROSE 126 TO 1204 MILLION FROM 1069 MILLION FOR THE SAME PERIOD A YEAR AGO THE YEARTODATE SAMESTORE SALES ROSE 5 9311050026 931105 NOT FOR NOTHING IT WOULD SEEM DO ORATORS GET GOLDEN TONGUES BY JENNIFER ABRAMSOHN STAFF REPORTER OF THE WALL STREET JOURNAL FOR JEFFREY JACOBI IT'S NOT WHAT YOU SAY BUT HOW YOU SAY IT THAT COUNTS ON THE BOTTOM LINE THE NEW YORK VOICE COACH CLAIMS THAT US BUSINESS LOSES BILLIONS OF DOLLARS A YEAR IN DEAD DEALS SQUANDERED SALES AND MUTED MOTIVATION ALL BECAUSE OF THE WAY WE TALK AS MR JACOBI ASKS COULD YOU RELAX ON A LONG FLIGHT IF THE CAPTAIN SOUNDED LIKE DON KNOTTS IN MAY MR JACOBI COMMISSIONED A SURVEY TO DETERMINE JUST WHICH VOICES AMERICANS FIND MOST ANNOYING OF THE 1008 MEN AND WOMEN WHO RESPONDED A FULL 44 FOUND A WHINING NAGGING VOICE MOST IRRITATING HIGHPITCHED AND SQUEAKY VOICES IRKED NEARLY 16 OF THOSE POLLED WHILE LOUD GRATING SPEECH BOTHERED 121 FARTHER DOWN THE LIST WERE MUMBLERS VERY FAST TALKERS AND PEOPLE WHO SPEAK IN MONOTONOUS TONES FOREIGN ACCENTS TOOK A MERE 24 OF THE VOTES NONETHELESS ACCENT REDUCTION IS ONE OF THE MOST COMMON REASONS PEOPLE COME TO MR JACOBI'S STUDIO WHERE THEY SPEND AN AVERAGE OF 30 HOURLONG SESSIONS HUMMING BREATHING AND ENUNCIATING AT A COST OF 150 AN HOUR SINCE THE MID1980S HE HAS PLAYED HENRY HIGGINS TO CORPORATE ELIZA DOOLITTLES FROM PAKISTAN FRANCE AND THE NETHERLANDS AS WELL AS FROM NEW YORK THE MIDWEST AND THE SOUTH CLIENTS COME TO HIM FOR OTHER REASONS TOO A SALES MANAGER SOUGHT HIS SOUND ADVICE AFTER HER BOSS TOLD HER TO FIX HER SHRILL VOICE OTHERS RESPOND TO MORE SUBTLE HINTS ERNEST LITTLES A MARKETING MANAGER WANTED A MORE POWERFUL VOICE NO ONE TOLD ME I HAD TO DO SOMETHING ABOUT MY VOICE HE SAYS BUT THEY DID SAY I CAN'T HEAR YOU' A LOT WHAT MR JACOBI CALLS VOICE DEFICITS DON'T HAMPER ONLY CORPORATE CLIMBERS HOWEVER PRESIDENT BUSH HAD A WIMP IMAGE FOR EXAMPLE PARTLY BECAUSE HIS VOICE WAS A LITTLE NASAL AND WHINY MR JACOBI SAYS AND PRESIDENT CLINTON IS HOARSE ALL THE TIME WHICH DOESN'T MAKE HIM SOUND LIKE MUCH OF A LEADER MR JACOBI IS SURPRISED THAT SOMEONE AS HEALTHCONSCIOUS AS THE PRESIDENT TAKES SUCH A LAX ATTITUDE TOWARD KEEPING HIS VOICE IN SHAPE GIVEN THE CHANCE HE WOULD RECOMMEND EXERCISES THE PRESIDENT COULD DO TO STRENGTHEN HIS INSTRUMENT THE PUBLIC WOULDN'T NEED TO WORRY THAT WASHINGTON MIGHT BURN WHILE THE PRESIDENT HUMS THE EXERCISES ONLY TAKE 10 MINUTES A DAY MR JACOBI SAYS HE COULD DO THEM IN THE SHOWER 9311050025 931105 CANADA MALTING CO BUYS STAKE TORONTO CANADA MALTING CO SAID IT ACQUIRED A 20 STAKE IN ARGENTINA'S MALTERIA PAMPA SA WHICH IT DESCRIBED AS SOUTH AMERICA'S LARGEST MALT PRODUCER IT SAID IT PAID 14 MILLION FOR ITS INTEREST IN THE JOINT VENTURE OF WHICH ARGENTINE HOLDING COMPANY LONDRINA SA AND BRAZILIAN BREWER BRAHMA COMPANHIA CERVEJARIA EACH OWN 40 CANADA MALTING SAID IT ALSO RECEIVED AN OPTION TO INCREASE ITS STAKE TO 333 WITHIN THREE YEARS 9311050024 931105 ENTERTAINMENT SEGA AIDED BY HEDGEHOG IS GAINING ON NINTENDO BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SONIC THE HEDGEHOG IS GIVING SUPER MARIO THE FIGHT OF HIS LIFE LED BY RUNAWAY SALES OF ITS GENESIS PLAYER SEGA OF AMERICA INC APPEARS TO HAVE EDGED AHEAD OF NINTENDO OF AMERICA INC IN THE MARKET FOR 16BIT MACHINES THE MOST CRUCIAL SEGMENT OF THE 6 BILLION HOME VIDEOGAME ENTERTAINMENT INDUSTRY ALTHOUGH MORE US HOMES HAVE VIDEOGAME MACHINES MADE BY NINTENDO THAN SEGA NEW FIGURES FROM TOY RETAIL SALES TRACKING SERVICE A MARKET RESEARCH ARM OF NPD GROUP SHOW SEGA LEADING NINTENDO SLIGHTLY IN JANUARYAUGUST SALES OF THE 16BIT PLAYERS THAT NOW DOMINATE SALES AND WHILE NINTENDO GAMES LED BY THE COMPANY'S BESTKNOWN CHARACTER SUPER MARIO STILL SELL IN THE MILLIONS ANALYSTS SAY SOME OF THE HOTTEST ACTION IN THE INDUSTRY HAS INVOLVED GAMES STARRING SEGA'S SONIC THE HEDGEHOG CHARACTER AND SEGA'S MORE EXPLICITLY VIOLENT VERSION OF THE BESTSELLING MORTAL KOMBAT GAME ACCORDING TO AN ANALYSIS BY GERARD KLAUER MATTISON & CO A NEW YORKBASED MARKET RESEARCH FIRM SEGA HAS SO MUCH MOMENTUM THAT IT STANDS TO INCREASE ITS PROJECTED 43 SHARE OF TOTAL 1993 US CARTRIDGEBASED VIDEOGAME SALES TO 54 NEXT YEAR WHILE NINTENDO IS PROJECTED TO SLIP FROM 55 OF TOTAL SALES TO 44 OFFICIALS OF NINTENDO OF AMERICA IN REDMOND WASH INSIST THEY WILL NOT LOSE OVERALL DOMINANCE OF THE US MARKET BUT THEY CONCEDE THE 16BIT MARKET IS TOUGH WHILE THIS YEAR MAY BE A 5050 IN SALES OF 16BIT MACHINES WE STILL HAVE THE NO 1 INSTALLED BASE AND THE REAL WINNER PROBABLY WON'T BE KNOWN FOR ANOTHER YEAR SAYS PETER MAIN VICE PRESIDENT OF MARKETING FOR NINTENDO OF AMERICA HE NOTES THAT NINTENDO'S HANDHELD PLAYER CALLED GAME BOY VASTLY OUTSELLS SEGA'S PORTABLE GAME GEAR WITH THE BIG CHRISTMAS SEASON LOOMING NINTENDO AND SEGA ARE CRANKING OUT NEW GAMES LIKE NINTENDO'S SUPER MARIO ALLSTARS AND SEGA'S NFL FOOTBALL '94 STARRING JOE MONTANA IT'S A REAL HORSE RACE SAYS LEE ISGUR A PARTNER IN VOLPE WELTY A SAN FRANCISCOBASED INVESTMENT BANK ALTHOUGH TWO NEW CHALLENGERS 3DO CO AND ATARI CORP ARE GETTING A LOT OF ATTENTION FOR THEIR HIGHERPERFORMANCE PLAYERS ANALYSTS SAY THE SOFTWARE IS TOO LIMITED AND THE PRICES TOO HIGH FOR THEM TO POSE ANY IMMEDIATE THREAT TO THE NINTENDOSEGA HEGEMONY 3DO'S 32BIT PLAYER WHICH INCLUDES A CDROM PLAYER AND WILL EVENTUALLY BE ABLE TO PERFORM A WIDE ARRAY OF INTERACTIVE FUNCTIONS WAS INTRODUCED A FEW WEEKS AGO AT A PRICE OF ABOUT 700 AND ATARI'S 64BIT PLAYER WAS LAUNCHED YESTERDAY AT A PRICE OF 249 AT THE MOMENT I WOULD SAY THE NINTENDOSEGA DOMINANCE WILL GO WELL INTO 1995 MR ISGUR SAYS AS RECENTLY AS 1989 NINTENDO BACKED BY ITS POWERFUL JAPANESE PARENT NINTENDO CO COMMANDED AS MUCH AS 80 OF HOME VIDEOGAME SALES SEGA ALSO BACKED BY A POWERFUL JAPANESE PARENT SEGA ENTERPRISES LTD HAD TRIED TO COMPETE EARLIER IN THE DECADE WHEN IT WAS UNDER US OWNERSHIP BUT IT DIDN'T GET FAR FOUR YEARS AGO REDWOOD CITY CALIFBASED SEGA OF AMERICA CAME ROARING BACK WITH ITS MORE POWERFUL 16BIT GENESIS PLAYER THE SUPERIOR PLAY ON GENESIS ALLOWED SEGA TO PROMOTE IT AS THE FASTEST GAME IN THE WORLD SAYS SEAN MCGOWAN SENIOR VICE PRESIDENT OF RESEARCH FOR GERARD KLAUER MATTISON AND IT ATTRACTED OLDER TEENAGERS AS WELL AS TALENTED GAME DEVELOPERS NINTENDO MEANTIME MADE MISTAKES ACCORDING TO INDUSTRY EXPERTS FIRST IT DIDN'T GET A 16BIT PLAYER TO MARKET UNTIL 18 MONTHS AFTER SEGA INTRODUCED GENESIS MR MCGOWAN SAYS NINTENDO OFFICIALS DIDN'T BELIEVE THEY HAD ADEQUATE GAME SOFTWARE FOR AN UPGRADED PLAYER THEN THE NEW SUPER NINTENDO ENTERTAINMENT SYSTEM WAS PRICED AT ABOUT 200 WHILE SEGA WAS SELLING ITS GENESIS FOR ABOUT 150 WHEN SEGA IS OUT THERE AT 150 YOU CAN'T GET UP AND SAY 200 IS FINE MR MCGOWAN SAYS SEGA HAS ALSO BEATEN NINTENDO TO THE PUNCH BY GETTING A CDROM PLAYER TO MARKET IT EXPECTS TO HAVE SOLD A TOTAL OF ONE MILLION UNITS BY THE END OF THIS YEAR NINTENDO WON'T OFFER A COMPETING PRODUCT FOR COST REASONS AND BECAUSE IT DOESN'T BELIEVE THERE IS ENOUGH DEMAND NINTENDO OFFICIALS DON'T BELIEVE THEY HAVE MADE TACTICAL MISTAKES BUT WHEN NINTENDO FINALLY LOWERED THE PRICE ON ITS 16BIT PLAYER TO A MORE COMPETITIVE 149 LAST YEAR SALES CERTAINLY ACCELERATED SAYS GEORGE HARRISON NINTENDO'S DIRECTOR OF MARKETING INDEED NINTENDO'S ESTIMATED 743 MILLION IN SALES OF THE MORE POWERFUL PLAYERS LAST YEAR ECLIPSED SEGA'S GENESIS SALES WHICH REACHED AN ESTIMATED 440 MILLION DURING THE SAME PERIOD TOM KALINSKE SEGA OF AMERICA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS SEGA AT THE TIME WAS STILL OUTGUNNED BY NINTENDO'S VAST NETWORK OF DISTRIBUTION CHANNELS OUR SALES WERE ACTUALLY FANTASTIC IN 1992 BUT WE DIDN'T HAVE WALMART OR KMART HE SAYS STARTING LAST MARCH SEGA BEGAN DISTRIBUTING THROUGH BOTH DISCOUNT CHAINS WITH DISTRIBUTION NOW ON A PAR WITH NINTENDO SEGA HAS ALSO SOUGHT TO BOLSTER ITS IMAGE AS THE HIPPER ALTERNATIVE THROUGH TELEVISION COMMERCIALS THAT FEATURE FOR EXAMPLE A ROCK SOUNDTRACK AND A TEENAGER SHOUTING SEGA ITS UNCENSORED VERSION OF MORTAL KOMBAT THE CONTROVERSIAL GAME PRODUCED BY ACCLAIM ENTERTAINMENT INC OF OYSTER BAY NY ALSO DEMONSTRATED SEGA'S WILLINGNESS TO FLOUT CONVENTION THE STRATEGY SEEMS TO HAVE WORKED ANALYSTS SAY SEGA'S MORTAL KOMBAT IS OUTSELLING NINTENDO'S BY AS MUCH AS 50 MEANWHILE THE GAME IS SPURRING SALES OF THE GENESIS GAME PLAYER WHICH IS NECESSARY TO PLAY THE SEGA VERSION NINTENDO'S MR HARRISON RETORTS THAT THE STRONG DEMAND FOR HIS COMPANY'S VERSION OF THE NEW STREET FIGHTER II TURBO GAME MORE THAN MAKES UP FOR ANY SLUGGISHNESS IN ITS MORTAL KOMBAT BLOOD AND GUTS IS ONE THING BUT NINTENDO IS FUNDAMENTALLY ABOUT GREAT GAME PLAYING HE SAYS NINTENDO IS FIGHTING BACK ON OTHER FRONTS AIMING AT SEGA'S OLDER CLIENTELE NINTENDO IS SHIPPING ACTION SPORTS GAMES FOR CHRISTMAS AND IS ADVERTISING A GAME BOY PRODUCT WITH A RAP HIPHOP APPROACH MR HARRISON SAYS LOOKING BEYOND THE CURRENT BATTLEGROUND TO NEW TECHNOLOGIES NINTENDO IS WORKING WITH SILICON GRAPHICS INC ON A 64BIT NINTENDO PLAYER THAT WILL BE INTRODUCED IN 1995 NINTENDO HOPES THAT PLAYER WILL LEAPFROG A MACHINE OF AT LEAST 32 BITS BEING DEVELOPED BY SEGA AND HITACHI LTD BOTH NINTENDO AND SEGA HAVE THE CASH RESERVES TO WAGE A PROTRACTED WAR NOT ONLY AGAINST NEWCOMERS BUT EACH OTHER WE'RE VERY CONFIDENT WE ARE GOING TO WIN THE FIGHT BUT WE ARE CERTAINLY TAKING NOTHING FOR GRANTED SAYS NINTENDO'S MR MAIN COUNTERS MR KALINSKE I WILL NOT BE SATISFIED UNTIL WE HAVE A DOMINANT POSITION 9311050023 931105 BOEING SELLS AWACS TO JAPAN SEATTLE BOEING CO SAID IT WON AN 840 MILLION SALE TO JAPAN OF TWO AWACS JETS THE ORDER HAD BEEN EXPECTED BOTH WILL BE DELIVERED IN EARLY 1998 THE AWACS SYSTEM'S SURVEILLANCE AND COMMANDANDCONTROL ELECTRONIC GEAR WILL BE CARRIED ABOARD TWO BOEING MODEL 767 TWINENGINE JETS BUILT IN A FACTORY AT EVERETT WASH MODIFICATIONS FOR THE AWACS PACKAGE WILL TAKE PLACE AT BOEING MILITARYAIRPLANE OPERATIONS AT WICHITA KAN BOEING IS THE PRIME CONTRACTOR FOR AWACS WESTINGHOUSE CORP BUILDS A FLEXIBLE MULTIMODE RADAR FOR THE PLANE 9311050022 931105 WHO'S NEWS METROGOLDWYNMAYER INC METROGOLDWYNMAYER INC SANTA MONICA CALIF GERRY RICH 33 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF MARKETING HE HAD BEEN HEAD OF MARKETING AT MIRAMAX FILMS NOW A UNIT OF WALT DISNEY CO ASHLEY BOONE CURRENT HEAD OF MARKETING IS EXPECTED TO LEAVE WHEN HIS CONTRACT EXPIRES AT THE END OF THE YEAR HE COULDN'T BE REACHED RICH WILL REPORT TO FRANK MANCUSO CHAIRMAN OF THE MOVIE STUDIO WHO RECENTLY SUCCEEDED ALAN LADD JR MGM IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA 9311050021 931105 50OFF STORES SALES FALL 12 SAN ANTONIO TEXAS 50OFF STORES INC SAID SALES FOR THE FIVEWEEK PERIOD ENDED OCT 29 FELL 12 TO 166 MILLION FROM 168 MILLION A YEAR EARLIER THE DISCOUNT RETAILER SAID SAMESTORE SALES DECLINED 19 THE COMPANY SAID IT COULDN'T PROVIDE YEARTODATE SALES FIGURES 9311050020 931105 BIG CANADIAN BANK BEGINS TO UNDERWRITE INSURANCE POLICIES TORONTO CANADIAN IMPERIAL BANK OF COMMERCE BEGAN UNDERWRITING INSURANCE IN WHAT IS SEEN AS THE FIRST STEP OF A MAJOR INCURSION BY CANADA'S BIG BANKS INTO THE COUNTRY'S INSURANCE INDUSTRY CANADIAN IMPERIAL CANADA'S SECONDLARGEST BANK INITIALLY IS OFFERING JUST ACCIDENTAL DEATH POLICIES BUT WILL ADD MORE PRODUCTS IN COMING MONTHS WITHIN TWO YEARS THE BANK SAID IT PLANS TO OFFER A WIDE RANGE OF INDIVIDUAL AND GROUP AUTO HOME LIFE AND HEALTH INSURANCE PRODUCTS THIS INITIATIVE WILL BRING CANADIAN IMPERIAL CLOSER TO ITS GOAL OF BEING A FULL PROVIDER OF FINANCIAL SERVICES SAID GABOR KALMAR PRESIDENT OF THE BANK'S LIFE INSURANCE ARM CANADA'S BANKS WHICH ALREADY CONTROL MUCH OF THE COUNTRY'S SECURITIES TRUST AND MUTUAL FUND INDUSTRIES WERE ALLOWED THROUGH RECENT DEREGULATION TO BEGIN UNDERWRITING INSURANCE BY CONTRAST US BANKS CAN SELL BUT CAN'T UNDERWRITE INSURANCE OTHER CANADIAN BANKS ALSO HAVE INDICATED THEY PLAN TO SET UP INSURANCE SUBSIDIARIES WITH THE THREAT OF INCREASED COMPETITION FROM THE BANKS INSURANCE COMPANIES HAVE BEGUN RESTRUCTURING THEIR OWN BUSINESSES TO LOWER COSTS AND FOCUS ON THEIR MOST PROFITABLE PRODUCT LINES CANADIAN IMPERIAL EXPECTS ITS INSURANCE OPERATIONS WILL GENERATE ANNUAL PREMIUM INCOME OF SOME 500 MILLION CANADIAN DOLLARS US382 MILLION WITHIN FIVE YEARS WHICH REPRESENTS LESS THAN 2 OF CANADA'S LIFE AND GENERAL INSURANCE MARKETS HOWEVER MR KALMAR SAID THE BUSINESS COULD GROW MUCH LARGER IF AS IS WIDELY EXPECTED CANADIAN BANKS ARE GIVEN THE POWER TO SELECTIVELY MARKET INSURANCE PRODUCTS TO THEIR VAST CUSTOMER BASE THAT WOULD GIVE THE BANKS A BIG ADVANTAGE OVER THE TRADITIONAL SALES AGENT WHO PURSUES CUSTOMERS ON A MORE RANDOM BASIS 9311050019 931105 BUSINESS BRIEF ZAPATA CORP FISCAL FIRSTQUARTER GAIN OF 338 MILLION IS EXPECTED ZAPATA CORP SAID THAT IT WILL RECORD A 338 MILLION PRETAX GAIN IN THE FISCAL FIRSTQUARTER ENDING DEC 31 FROM THE SALE OF ABOUT 375 MILLION SHARES OF TIDEWATER INC STOCK THE HOUSTON NATURAL GAS AND FISHING COMPANY SAID IT SOLD THE TIDEWATER STOCK FOR A NET PRICE OF 2075 A SHARE THE SALE REDUCES ZAPATA'S HOLDING OF TIDEWATER TO ABOUT ONE MILLION SHARES ZAPATA SAID IT WOULD USE PROCEEDS TO REDUCE DEBT AND TO FUND EXPANSION OF THE COMPANY'S NATURALGAS SERVICE OPERATIONS IN THE 1992 FISCAL FIRSTQUARTER ZAPATA HAD NET INCOME OF 22 MILLION OR TWO CENTS A SHARE ON REVENUE OF 255 MILLION 9311050018 931105 WHO'S NEWS CHEMED CORP CHEMED CORP CINCINNATI EDWARD L HUTTON 74 YEARS OLD WAS NAMED EXECUTIVE CHAIRMAN A NEW POSITION AT THE COMPANY WHICH IS INVOLVED IN THE MEDICAL DENTALSUPPLY SANITARYPRODUCTS AND PLUMBINGSERVICES BUSINESSES MR HUTTON CONTINUES AS CHIEF EXECUTIVE OFFICER JON D KRAHULIK 48 WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER HE SUCCEEDS MR HUTTON AS PRESIDENT THE CHIEF OPERATING OFFICER POSITION IS NEW MR KRAHULIK FORMERLY WAS VICE CHAIRMAN AND AN ASSOCIATE JUSTICE OF THE INDIANA SUPREME COURT KEVIN J MCNAMARA 40 WAS NAMED EXECUTIVE VICE PRESIDENT HE CONTINUES AS SECRETARY AND GENERAL COUNSEL MR MCNAMARA FORMERLY WAS VICE CHAIRMAN THE COMPANY ALSO NAMED SANDRA E LANEY 50 SENIOR VICE PRESIDENT SHE CONTINUES AS CHIEF ADMINISTRATIVE OFFICER 9311050017 931105 US OPPOSES MOVE BY KODAK TO REMOVE TWO CONSENT DECREES WASHINGTON THE JUSTICE DEPARTMENT SAID IT OPPOSES EASTMAN KODAK CO'S MOTION TO LIFT TWO CONSENT DECREES THAT HAVE PREVENTED THE PHOTOGRAPHY GIANT FROM TIGHTENING ITS HOLD ON THE FILM MARKET BUT THE DEPARTMENT SAID IT WAS WILLING TO MODIFY PART OF THE DECREES KODAK FILED THE MOTION IN MAY IN FEDERAL COURT IN ROCHESTER NY A KODAK SPOKESMAN WHO SAID THE ROCHESTER NY FIRM IS STILL REVIEWING A LETTER FROM THE JUSTICE DEPARTMENT SAID WE STILL BELIEVE OUR POSITION IS VALID WE INTEND TO PURSUE THIS IN COURT A JUDGE WILL DECIDE HOW TO PROCEED THE JUSTICE DEPARTMENT SAID LIFTING THE CONSENT DECREES WOULD NOT SERVE THE PUBLIC INTEREST SINCE KODAK CONTINUES TO DOMINATE THE FILM MARKET WITH A 75 MARKET SHARE IN A 1921 CONSENT DECREE THE DEPARTMENT ENJOINED KODAK FROM PREVENTING ITS DEALERS FROM FREELY SELLING COMPETING PRODUCTS IT ALSO PREVENTED KODAK FROM MAKING ITS OWN PRIVATELABEL FILM THE SECOND DECREE ENTERED IN 1954 REQUIRES KODAK TO LICENSE ITS PHOTOFINISHING TECHNOLOGY TO OTHER COMPANIES AND PROHIBITS KODAK FROM LINKING THE SALE OF ITS COLOR FILM TO PROCESSING OF THE FILM THE DEPARTMENT SAID IT WOULDN'T OPPOSE KODAK'S MOTION TO MODIFY THE 1921 CONSENT DECREE SO IT APPLIES ONLY TO FILM AND SINGLEUSE CAMERAS THAT MEANS THEORETICALLY THAT KODAK WOULD BE ABLE TO PREVENT RETAILERS OF ITS CAMERAS FROM SELLING CAMERAS MADE BY OTHER COMPANIES BUT A KODAK SPOKESMAN SAID OF SUCH A CHANGE WE DON'T THINK IT'S SIGNIFICANT AT ALL THE CHANGE WOULD ALSO ALLOW KODAK TO PREVENT RETAILERS OF PHOTOGRAPHIC PAPER FROM SELLING PAPER MADE BY RIVAL FUJI PHOTO FILM CO AND OTHERS BUT MOST OF THE PAPER IS USED BY PHOTOFINISHERS NOT BY RETAILERS PHOTOFINISHERS WEREN'T COVERED BY THE 1921 DECREE A SPOKESMAN SAID 9311050016 931105 WHO'S NEWS CRAIG WILL LEAVE JANUS VENTURE POST TO RUN JANUS FUND BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL JANUS CAPITAL SAID JAMES P CRAIG WILL LEAVE HIS POST AS MUTUALFUND MANAGER OF JANUS VENTURE FUND ON DEC 1 TO FOCUS ON THE FASTGROWING JANUS FUND WHICH HE ALSO RUNS MR CRAIG'S DEPARTURE FROM VENTURE WHICH HE HAS RUN SINCE ITS START IN 1985 IS SEEN AS A SIGN THAT THE RAPID FLOW OF MONEY INTO THE MUTUALFUND INDUSTRY IS BEGINNING TO STRAIN MANAGERS' RESOURCES JANUS FUND ON JUNE 30 WAS THE SIXTH LARGEST US STOCK FUND IT HAS DOUBLED IN SIZE SINCE JUNE 1992 AND HAS 9 BILLION IN ASSETS BASED IN DENVER JANUS CAPITAL IS A UNIT OF KANSAS CITY SOUTHERN INDUSTRIES INC MR CRAIG SAID HE ASKED TO LEAVE VENTURE BECAUSE RUNNING THE TWO DIFFERENT FUNDS JANUS INVESTS IN LARGE COMPANIES VENTURE IN SMALL ONES WAS BEGINNING TO HURT THEIR PERFORMANCES JANUS AND JANUS VENTURE HAVE BEATEN THE STANDARD & POOR'S 500 INDEX A STOCK MARKET BENCHMARK IN THE PAST FIVE YEARS BUT RECENTLY THEIR PERFORMANCES HAS FALLEN OFF VENTURE HAS LAGGED BEHIND MOST SMALLCOMPANY STOCK FUNDS SINCE THE BEGINNING OF 1991 WHICH MR CRAIG ATTRIBUTES IN PART TO HIS AVOIDANCE OF HIGHFLYING TECHNOLOGY STOCKS AND INITIAL PUBLIC OFFERINGS VENTURE HAS A TOTAL RETURN IN 1993 OF 75 INCLUDING PRICE CHANGE AND DIVIDENDS WHICH IS MORE THAN A PERCENTAGE POINT BELOW THE S&P 500 INCLUDING DIVIDENDS JANUS FUND LAST YEAR LAGGED BEHIND THE S&P 500 SLIGHTLY BUT THIS YEAR IS BEATING IT WITH A RETURN OF 108 STILL MR CRAIG WOULD LIKE TO DO BETTER MAGELLAN IS KILLING US THIS YEAR BUT WE'LL TAKE CARE OF THAT NEXT YEAR MR CRAIG SAID REFERRING TO HIS LARGE RIVAL FIDELITY MAGELLAN VENTURE A 18 BILLION FUND THAT HAS BEEN CLOSED TO NEW INVESTORS SINCE 1991 WILL BE RUN BY TWO MANAGERS JAMES GOFF AND WARREN LAMMERT MR GOFF AND MR LAMMERT EACH WILL CONTINUE TO RUN ONE SMALLER STOCK FUND MR CRAIG EXPECTS THAT UNDER THE NEW MANAGERS VENTURE WILL INVEST MORE IN TECHNOLOGY STOCKS MR CRAIG ALSO WILL TAKE THE REINS AT JANUS BALANCED A MUCH SMALLER FUND THAN VENTURE RUN BY MR LAMMERT HE SAYS THAT JANUS BALANCED WILL INCLUDE MANY OF THE STOCKS IN JANUS FUND EASING THE BURDEN OF MANAGING TWO FUNDS MR CRAIG SAID THAT HE DECIDED TO LEAVE VENTURE WHEN HE WAS SITTING IN THE DISCOVERY ZONE WITH MY THREEYEAROLD I WAS WORKING WHILE SHE WAS GALLIVANTING AROUND IF YOU'VE EVER BEEN IN ONE OF THESE PLACES IT'S TOTAL CHAOS I REALIZED RUNNING BOTH FUNDS IS NOT THE BEST THING FOR THE SHAREHOLDERS I SHOULD GIVE THIS UP MR CRAIG SAID JANUS HAS NO PLANS TO CLOSE JANUS FUND TO NEW INVESTORS MR CRAIG SAID 9311050015 931105 THE AMERICAS WILL THE US AGAIN REJECT MEXICO'S REFORMERS BY ENRIQUE KRAUZE MEXICO CITY IT WAS GEORGE SANTAYANA WHO ONCE SAID THOSE WHO CANNOT REMEMBER THE PAST ARE CONDEMNED TO REPEAT IT HIS WORDS ARE FITTING IN LIGHT OF CONTEMPORARY MEXICANAMERICAN RELATIONS INDEED THERE ARE CRUCIAL MISTAKES IN OUR SHARED PAST THAT THE AMERICANS SHOULD KNOW AND KEEP FROM REPEATING THE OFFICIAL NAME OF MEXICO IS THE UNITED STATES OF MEXICO THIS IS NO MERE COINCIDENCE THE FOUNDERS OF THE FIRST FEDERAL REPUBLIC WHO GAVE IT THIS NAME IN 1824 WANTED TO BUILD A COUNTRY IN THE IMAGE AND LIKENESS OF THEIR NORTHERN NEIGHBOR FOR THESE EARLY CONSTITUTIONALISTS WHO WOULD LATER BE CALLED LIBERALS THE US CONSTITUTION WAS IN THE WORDS OF AN 1824 EDITORIAL IN THE EL SOL NEWSPAPER ONE OF THE MOST PERFECT CREATIONS OF THE SPIRIT THE CORNERSTONE OF THE SIMPLEST HAPPIEST AND MOST LIBERAL OF GOVERNMENTS IN ALL TIME THE LIBERALS BELIEVED IN FREE TRADE AND FOUGHT TO INTRODUCE FULL CIVIL RIGHTS FOR THE INDIVIDUAL FREEDOM OF ACTION THOUGHT AND WORSHIP IN 1857 THEIR PROJECT CRYSTALLIZED INTO THE CONSTITUTION UNDER WHICH MEXICO WOULD BE A REPRESENTATIVE DEMOCRATIC AND FEDERAL REPUBLIC THIS CONSTITUTION OF 1857 REMAINS THE MAINSTAY OF MEXICO'S LEGAL ORDER BUT THE GOAL OF THE CONSERVATIVES THE LIBERALS' ARCHENEMIES WAS TO BUILD ON THE CUSTOMS AND INSTITUTIONS OF THE FORMER SPANISH REGIME THEY ENDORSED INDUSTRIAL PROTECTIONISM DREAMT OF A CORPORATIVIST AND HIERARCHICAL SOCIETY AND BELIEVED ROMAN CATHOLICISM SHOULD BE THE STATE RELIGION SIMILARLY THEY HELD NO BRIEF FOR FREEDOM OF THOUGHT POLITICAL PARTIES OR THE VAIN UTOPIAS AND INSANE RAVINGS OF THE REPUBLICAN REGIME THEIR IDEAL FOREIGN POLICY WAS THE TUTELAGE OF A EUROPEAN MONARCHY AND THE GREATEST DISSOCIATION POSSIBLE FROM THE UNITED STATES OF AMERICA WE DO NOT WISH TO SEE THE HATED BANNER OF THE STARS AND STRIPES REPLACING THE NATIONAL FLAG SAID LUCAS ALAMAN FOUNDER OF THE MEXICAN CONSERVATIVE PARTY PARADOXICALLY THE UNITED STATES HAS SYSTEMATICALLY GONE OUT OF ITS WAY TO SUPPORT ITS CONSERVATIVE ENEMIES AT THE EXPENSE OF ITS LIBERAL ALLIES THE TEXAN WAR AND THE INVASION OF 1847 ARE THE FIRST AND MOST OBVIOUS EXAMPLES BUT NOT EVEN THESE SIGNS OF HOSTILITY DETERRED THE LIBERALS FROM LOOKING EXPECTANTLY TOWARD THE NORTH DURING THE WAR BETWEEN THE LIBERALS AND THE CONSERVATIVES 18581861 THE SENATE IN WASHINGTON TURNED DOWN FOR PROTECTIONIST REASONS A PROPOSAL OF A FREE TRADE AGREEMENT WITH BENITO JUAREZ'S LIBERAL GOVERNMENT WHEN THE LIBERAL CAUDILLO PORFIRIO DIAZ CAME TO POWER IN 1876 MOST OF HIS ENERGY WENT INTO LAUNCHING A VAST PROGRAM OF ECONOMIC AFFILIATION WITH THE UNITED STATES BY 1909 THE UNITED STATES HAD THE LARGEST FOREIGN INVESTMENT 38 IN MEXICO WITH MONEY IN RAILWAYS MINING AGRICULTURE INDUSTRY BANKS AND PETROLEUM THIS POSITION OF PRIVILEGE DID NOT PREVENT THEM FROM TURNING THEIR BACKS ON DIAZ WHEN HE DARED TO BACK AN OPPOSITION CANDIDATE IN NICARAGUA IN 1909 AT THE END OF A DEMOCRATIC AND ALMOST BLOODLESS REVOLUTION DIAZ WAS DEFEATED AND SENT INTO EXILE BY FRANCISCO I MADERO A WEALTHY BUSINESSMAN WHO HAD BEEN EDUCATED IN CALIFORNIA MADERO WAS PROBABLY THE PUREST DEMOCRAT TO REACH A POSITION OF POWER IN LATIN AMERICA THE LANDSLIDE ELECTION THAT BROUGHT HIM TO POWER WAS THE CLEANEST IN MEXICAN HISTORY BUT IT ONLY TOOK HIS ENEMIES 15 MONTHS TO DEFEAT AND ASSASSINATE HIM DEEPLY INVOLVED IN ORCHESTRATING THIS COUP AND ASSASSINATION WAS THE AMERICAN AMBASSADOR TO MEXICO THAT WAS THE LAST STRAW AFTER ALMOST A CENTURY OF UNREQUITED LOVE THE GOVERNMENTS OF THE MEXICAN REVOLUTION WHO WERE NOMINALLY THE INHERITORS OF LIBERAL POLICY FINALLY ADOPTED ANTIAMERICAN MEASURES ALONG WITH MANY OF THE POLICIES IN THE CONSERVATIVE PROGRAM PROTECTIONISM SOCIAL CORPORATISM AND POLITICAL CENTRALIZATION UNDER THE GUIDANCE OF A PRACTICALLY OMNIPOTENT PRESIDENT TO THIS AUTHORITARIAN TRADITION WERE ADDED ESPECIALLY AFTER THE VICTORY OF THE CUBAN REVOLUTION THE VARIOUS IDEOLOGIES OF THE LEFT RANGING FROM NATIONALISM TO OPPOSITION TO CAPITALISM AND WHAT WAS CONTEMPTUOUSLY CLASSIFIED AS BOURGEOIS DEMOCRACY THIS EXPLOSIVE COMBINATION OF LEFT WING CONSERVATISM CAME TO POWER DURING LUIS ECHEVERRIA'S POPULIST REGIME 19701976 AND WAS PURSUED DURING THE DISASTROUS ADMINISTRATION OF JOSE LOPEZ PORTILLO 19761982 BOTH THESE PRESIDENTS WERE THE ARCHITECTS OF MEXICO'S ECONOMIC CRISIS ALTHOUGH THE NAMES HAVE CHANGED THE MEXICO OF 1993 IS STILL DIVIDED BETWEEN LIBERALS AND CONSERVATIVES THE LIBERALS WHO ARE PROBABLY THE MAJORITY SINCE THEY INCLUDE AMONG OTHERS 15 MILLION MEXICANS LIVING IN THE UNITED STATES WANT OUR COUNTRY TO STOP BEING WHAT OCTAVIO PAZ HAS CALLED AN ECCENTRIC POLE OF THE WEST IT SHOULD INSTEAD BECOME A NORMAL PART OF THE WEST THE LIBERALS ALSO WANT MEXICO TO PRESERVE ITS TRADITIONS CULTURE AND IDENTITY BUT BECOME A LIBERAL DEMOCRACY AND ADOPT A CAPITALIST SYSTEM IN WHICH THE POOR ARE PROVIDED WITH A SAFETY NET INSTEAD OF AN INFLEXIBLE CHAIN TO AN INEFFICIENT AND CORRUPT BUREAUCRACY THE NEW CONSERVATIVES UNLIKE THEIR PREDECESSORS DISGUISE THEIR VISCERAL HATRED OF THE YANKS BY SPEAKING WONDERFUL ENGLISH THAT THEY LEARNED IN ORDER TO BECOME WHAT MANY OF THEM IN FACT ARE PROFESSIONAL SCHOLARS OF NORTH AMERICAN FOUNDATIONS ALTHOUGH THEIR IDEAS ARE CAMOUFLAGED BY A NEW RHETORIC THEY STILL BELIEVE IN PROTECTIONISM FINANCIAL POPULISM MILITANT NATIONALISM AND OF COURSE ANTIAMERICANISM THEY ARE THE OLD CONSERVATIVE WOLVES IN SHEEP'S CLOTHING DEMOCRATIC CLOTHING THEY ARE RIGHT IN ONE THING EVEN IF THEY HAVE ONLY JUST DISCOVERED IT MEXICO IS NOT A DEMOCRATIC COUNTRY BUT THEIR RECIPE FOR MAKING MEXICO DEMOCRATIC IS ITSELF UNDEMOCRATIC BECAUSE IT PRESUPPOSES THE REESTABLISHMENT OF A STATE WITH ABSOLUTE POWERS THE ANACHRONISTIC PRI HAS THIS CALLING AS WELL BUT PRESIDENT CARLOS SALINAS DE GORTARI'S ECONOMIC LIBERALIZATION HIS PERESTROIKA HAS HAD A DETRIMENTAL EFFECT ON THESE POLITICAL DINOSAURS BY CREATING SPLITS BETWEEN THE BUSINESS OF BUSINESS AND THE BUSINESS OF POWER THE APPROVAL OF NAFTA WOULD ACCENTUATE THIS CHANGE IT WOULD UNLEASH ECONOMIC AND SOCIAL FORCES AND ENABLE MEXICO TO COMPLETE ITS PROCESS OF DEMOCRATIZATION DESPITE THE COUNTLESS WRONGS DONE TO MEXICO AND DESERTION ON THE PART OF ITS LIBERAL ALLIES HATRED OF THE GRINGOS IS MORE AN IDEOLOGICAL ARGUMENT OF THE OFFICIAL PROPAGANDA MACHINERY THAN A SENTIMENT FELT BY THE MEXICANS IF THE AMERICANS AGREE TO NAFTA THEY WILL BE ACTING IN FAVOR OF THEIR NATURAL ALLIES AND THEIR OWN INTERESTS IN MEXICO AND THROUGHOUT LATIN AMERICA MR KRAUZE IS A MEXICAN AUTHOR AND COEDITOR OF VUELTA MAGAZINE THIS ARTICLE WAS TRANSLATED BY CHARLOTTE BROAD 9311050013 931105 BUSINESS BRIEF COMPUTER MAKERS ZEOS AND COMPUADD BEGIN MERGER TALKS MINNEAPOLIS ZEOS INTERNATIONAL LTD SAID IT HAS BEGUN MERGER TALKS WITH COMPUADD CORP BOTH ARE MAILORDER PERSONALCOMPUTER MAKERS A MERGER BETWEEN THE TWO STRUGGLING COMPANIES WOULD CONTINUE THE CONSOLIDATION UNDER WAY IN THE PERSONALCOMPUTER BUSINESS WHICH HAS BEEN RAVAGED BY PRICE WARS FOR MORE THAN A YEAR THOUGH OFFICIALS AT ZEOS COULDN'T BE REACHED THE COMPANY SAID IN A STATEMENT THAT ITS TALKS WITH COMPUADD ARE VERY PRELIMINARY NEWS OF THE POTENTIAL DEAL CAME LATE YESTERDAY AFTER THE STOCK MARKET'S CLOSE A COMPUADD SPOKESMAN COULDN'T BE REACHED FOR COMMENT ON THE TALKS ZEOS REPORTED LAST MONTH THAT IT LOST 9 MILLION OR 105 A SHARE THROUGH THE FIRST NINE MONTHS OF THE YEAR ON SALES OF 169 MILLION FOR THE YEAREARLIER NINE MONTHS THE COMPANY HAD A LOSS OF 21 MILLION OR 245 A SHARE ON REVENUE OF 1592 MILLION PRIVATELY HELD COMPUADD IS OPERATING UNDER PROTECTION OF CHAPTER 11 OF THE US BANKRUPTCY CODE THE AUSTIN TEXAS MAILORDER COMPUTER MAKER WHICH STUMBLED AFTER TRYING TO EXPAND INTO PC RETAILING IS EXPECTED TO EMERGE NOV 15 FROM BANKRUPTCY PROTECTION UNDER A PLAN APPROVED BY THE BANKRUPTCY COURT 75 OF THE COMPANY WILL GO TO UNSECURED CREDITORS WHILE BILL HAYDEN COMPUADD'S FOUNDER WILL KEEP A 20 STAKE THE REMAINING 5 STAKE WILL GO TO MANAGEMENT AND EMPLOYEES COMPUADD HAS SAID THAT IT EXPECTS REVENUE THIS YEAR OF ABOUT 250 MILLION AS PART OF AN INDUSTRY CONSOLIDATION AST RESEARCH INC HAS PURCHASED THE COMPUTERMANUFACTURING BUSINESS OF TANDY CORP AND ZENITH DATA SYSTEMS INC BOUGHT A STAKE IN PACKARDBELL ELECTRONICS INC WHICH SELLS ITS MACHINES THROUGH MASSMARKET RETAILERS 9311050012 931105 TECHNOLOGY & HEALTH BLOCKBUSTER TO RENT CDROM PROGRAMS WORKING WITH FIVE BIG HARDWARE FIRMS BY DON CLARK STAFF REPORTER OF THE WALL STREET JOURNAL IN AN EFFORT TO POPULARIZE A NEW SOFTWARE MEDIUM BLOCKBUSTER ENTERTAINMENT CORP IS TEAMING UP WITH FIVE BIG HARDWARE COMPANIES TO DEMONSTRATE AND RENT CDROM PROGRAMS IN VIDEORENTAL STORES INTERNATIONAL BUSINESS MACHINES CORP APPLE COMPUTER INC PHILIPS ELECTRONICS PANASONIC CO A US UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL LTD OF JAPAN AND SEGA ENTERPRISES LTD WILL LET BLOCKBUSTER SET UP DISPLAYS TO LET CONSUMERS TRY OUT CDROM PLAYERS AND PROGRAMS ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANIES' PLANS THE PROGRAM WILL START AT 52 BLOCKBUSTER STORES IN THE SAN FRANCISCO AREA AND IS EXPECTED TO SPAWN A CDROM RENTALANDSALE BUSINESS FOR BLOCKBUSTER BEYOND VIDEO TAPES AND VIDEO GAMES BLOCKBUSTER HAS CALLED A NEWS CONFERENCE FOR TUESDAY IN SAN FRANCISCO TO DISCUSS THE VENTURE PEOPLE FAMILIAR WITH ITS PLANS SAY THAT STORE DISPLAYS WILL INCLUDE IBM PS/1 COMPUTERS APPLE'S MACINTOSH TV UNIT PHILIPS'S CDI PLAYERS THE SEGA CD PLAYER AND POSSIBLY PANASONIC'S REAL 3DO INTERACTIVE MULTIPLAYER CUSTOMERS WILL BE ABLE TO RENT PHILIPS SEGA AND PANASONIC HARDWARE FOR 15 FOR THREE NIGHTS AS WELL AS DISKS FOR 4 FOR THREE NIGHTS BUT NOT THE IBM AND APPLE HARDWARE THEY SAID THE EFFORT IS DESIGNED TO ADDRESS A CHICKENANDEGG PROBLEM THAT HAS BEDEVILED THE MARKET MOST OWNERS OF VIDEO GAME SYSTEMS AND PERSONAL COMPUTERS DON'T OWN CDROM PLAYERS YET AND THEY AREN'T LIKELY TO DO SO UNTIL THEY'VE SEEN WHAT THE SOFTWARE CAN DO RENTING IS BEGINNING TO LOOK LIKE A SOLUTION COMPUTER SOFTWARE COMPANIES HAVE LONG OPPOSED RENTING PROGRAMS STORED ON FLOPPY DISKS OUT OF FEAR THAT CONSUMERS WOULD SIMPLY COPY THEM AND A 1990 AMENDMENT TO US COPYRIGHT LAWS OUTLAWS SUCH RENTALS WITHOUT THE PERMISSION OF COPYRIGHT HOLDERS BUT CDROM DISKS HOLD MORE THAN 300 TIMES MORE DATA THAN FLOPPY DISKS MORE THAN MOST PC USERS CAN COPY ON THEIR HARD DRIVES SO SOME CDROM PUBLISHERS HAVE AGREED TO GIVE PERMISSION FOR RENTALS WE DON'T CARE WHETHER PEOPLE RENT THEIR CD TITLES OR NOT SAID KEN WASCH EXECUTIVE DIRECTOR OF THE SOFTWARE PUBLISHERS ASSOCIATION WHICH IS PROSECUTING CASES INVOLVING RENTALS OF CONVENTIONAL PC SOFTWARE THE CHOICE IS THEIRS THE PIONEER IN THE FIELD IS COMPTON'S NEW MEDIA A SUBSIDIARY OF TRIBUNE CO COMPTON'S A MAJOR CDROM PUBLISHER STARTED A YEAR AGO BY RENTING TITLES THROUGH THE INDIANAPOLISBASED CHAIN MAJOR VIDEO AND NOW CLAIMS ABOUT 200 RENTAL OUTLETS PAUL BADER A COMPTON'S VICE PRESIDENT SAID THE RENTAL BUSINESS HAS GROWN MORE SLOWLY THAN EXPECTED HE SAID HIS COMPANY HAS AGREED TO RENT PRODUCTS THROUGH BLOCKBUSTER ON THE THEORY THAT THE HUGE CHAIN'S CLOUT COULD MAKE RENTALS TAKE OFF WE BELIEVE THAT FOR THE CD CATEGORY TO BE SUCCESSFUL PEOPLE HAVE GOT TO SEE THIS STUFF MR BADER SAID THE SITUATION WITH BLOCKBUSTER WILL HAVE A PROFOUND EFFECT TAKING A LESS AGGRESSIVE POSTURE IS GIANT MICROSOFT CORP ANOTHER MAJOR PLAYER IN CDROM SOFTWARE MIKE LOSH GROUP PRODUCT MANAGER IN MICROSOFT'S CONSUMER PRODUCTS DIVISION SAID RENTALS ARE COMPLICATED BY THE FACT THAT SOFTWARE COMPANIES MUST NEGOTIATE NEW LICENSE AGREEMENTS WITH PEOPLE THAT CONTRIBUTE PICTURES ARTWORK OR OTHER MATERIALS FOR CDROMS ANOTHER ISSUE IS THAT PLAYING CDROM PROGRAMS ON PCS REQUIRES SOME SETUP COMMANDS THAT COULD CONFUSE THE AVERAGE CONSUMER BLOCKBUSTER MAY PRESENT SOME REAL INTERESTING OPPORTUNITIES MR LOSH SAID WE ARE ACTIVELY DISCUSSING IT BUT WE HAVEN'T MADE A DECISION YET 9311050011 931105 THE BUSINESS OF LAW LAWYERS AND CLIENTS BY AMY STEVENS THE PACIFIC RIM GOLD RUSH IS A BUST FEWER THAN A THIRD OF THE 40 MAJOR OUTOFSTATE LAW FIRMS THAT OPENED LOS ANGELES OFFICES IN THE 1980S HAVE HIT PAY DIRT SEVERAL ALREADY HAVE PULLED UP STAKES AND FOR OTHERS PROSPECTS ARE GRIM THE MOST RECENT CASUALTY WAS BAKER & MCKENZIE THE INTERNATIONAL GIANT ROARED INTO TOWN FIVE YEARS AGO PROCLAIMING LOS ANGELES THE CAPITAL OF A COMING LEGAL BOOM ON BOTH SHORES OF THE PACIFIC BUT LAST MONTH IT QUIETLY DECIDED TO SHUTTER ITS 38LAWYER BRANCH A PARTNER IN THE OFFICE WHICH GREW TO ABOUT 80 ATTORNEYS BEFORE LOSING KEY LAWYERS AND CLIENTS BLAMED THE RIPPLE EFFECTS OF THE RECESSION IN TOKYO THE JAPANESE INVESTMENTFLOW INTO CALIFORNIA DRIED UP BUT THE ECONOMY DOESN'T EXPLAIN EVERYTHING IN SOME CASES SMUG OLDLINE CORPORATE LAWYERS WITH BIG DOMESTIC CLIENTS HAD SIMPLY ASSUMED THAT THEIR FIRMS' NAMES ON LA LAWOFFICE DOORS WOULD ATTRACT ASIAN COMPANIES THEY PREDICTED THAT A FEW JAPANESE CLIENTS WOULD PROVIDE THE SPARK FOR A FULLFLEDGED INTERNATIONAL PRACTICE IT DIDN'T TURN OUT THAT WAY EVEN WHEN OUTOFSTATE FIRMS SEEDED THEIR LOS ANGELES OUTPOSTS WITH PROVEN PACIFIC RIM BUSINESSGETTERS FROM OTHER FIRMS THE WORK DIDN'T NECESSARILY SPREAD TO THEIR NEW PARTNERS THE PRACTICES DIDN'T EASILY MESH BAKER LAUNCHED ITS OFFICE BY ACQUIRING A MIDSIZE LITIGATION FIRM THEN IT ADDED A SPRINKLING OF INTERNATIONAL LAWYERS THE CHICAGO FIRM SHOULD HAVE MADE MORE OF AN EFFORT TO INTEGRATE AND EDUCATE THE ATTORNEYS WHO WERE BASICALLY LA ATTORNEYS AND NOT INTERNATIONAL ATTORNEYS SAYS HENRY OTA A PROMINENT LAWYER WHO BROUGHT SUCH CLIENTS AS NISSIN FOOD CO FORT LEE NJ TO BAKER MR OTA SAYS HE HAS GOTTEN CALLS FROM 20 LAW FIRMS INTERESTED IN HIRING HIM SINCE THE ANNOUNCEMENT THAT BAKER WOULD CLOSE ITS LOS ANGELES OFFICE CULTURAL DIFFERENCES ALSO GOT IN THE WAY IN JAPAN EXECUTIVES TEND TO BUILD DEEPLY PERSONAL LONGTERM RELATIONSHIPS WITH THEIR ATTORNEYS THEY TYPICALLY VIEW THEMSELVES AS CLIENTS OF THE LAWYER NOT THE FIRM LOYALTY IS HIGHLY PRIZED WHEN DEALING WITH AMERICANS JAPANESE CLIENTS PARTICULARLY THOSE AT SMALLER COMPANIES UNFAMILIAR WITH THE US OFTEN RESIST THE DELEGATION OF THEIR WORK TO OTHER ATTORNEYS BUT DIVISION OF LABOR IS CENTRAL TO THE ECONOMICS NOT TO MENTION THE INTERNAL POLITICS OF AMERICAN LAW FIRMS A PATTERN EMERGED YOU TYPICALLY HAD A PACIFIC RIM PARTNER WHO WOULD BE THE ONE PERSON THE CLIENT KNEW AND WANTED TO DEAL WITH RATHER THAN HAVING IT BE MORE OF A DEPARTMENTAL SORT OF PRACTICE SAYS MARIE PETERSON PRESIDENT OF BRUNSWICK PETERSON & VOLK AN ATTORNEY HEADHUNTING FIRM THAT PROMPTED RESENTMENT FROM OTHER PARTNERS AND IN SOME CASES A PARTING OF WAYS WHEN NEW YORK'S LEBOEUF LAMB LEIBY & MACRAE OPENED ITS LOS ANGELES OFFICE IN 1986 IT TRUMPETED A BURGEONING PACIFIC RIM PRACTICE AND A LOS ANGELES LAWYER WHO SPEAKS FLUENT JAPANESE IN ITS PROMOTIONAL BROCHURE BUT ASIAN BILLINGS WERE DISAPPOINTING AND THE FLUENTJAPANESE SPEAKER MEAD GREENBERG DEPARTED EARLIER THIS YEAR MR GREENBERG HAD COME FROM A SMALL FIRM WHERE HE WORKED CLOSELY WITH ASIAN COMPANIES HIS CLIENTS MOSTLY SMALL JAPANESE COMPANIES DIDN'T KINDLE WORK FOR OTHERS AT LEBOEUF LAWYERS AT THE FIRM SAID MR GREENBERG WHO HAS OPENED HIS OWN PRACTICE IN LOS ANGELES WAS OUT OF THE COUNTRY AND COULDN'T BE REACHED FIVE YEARS AGO NOBODY SUSPECTED THAT THE WESTWARD EXPANSION WOULD TURN OUT TO BE A LETDOWN IN LEGAL CIRCLES PACIFIC RIM WAS SUCH A CATCHWORD THAT LAWYERS DIDN'T STOP TO THINK THAT SUCCESS WASN'T A SURE THING ENGORGED WITH FAT FEES FROM THE 1980S MANY MAJOR FIRMS RUSHED TO INVEST IN LOS ANGELES OFFICE SPACE AND NEW HIRES LOS ANGELES AFTER ALL WAS THE NEXT BEST THING TO TOKYO AND INFINITELY CHEAPER AND LESS COMPLICATED FIRMS THAT DIDN'T TARGET ASIAN BUSINESS ALSO WENT WEST NEW YORK'S SHEA & GOULD AND PHILADELPHIA'S PEPPER HAMILTON & SCHEETZ AMONG OTHERS HOPED TO TAKE ADVANTAGE OF SPILLOVER LEGAL BUSINESS FROM THE INFLUX OF JAPANESE INVESTMENT IN LOS ANGELES INCLUDING REAL ESTATE AND EMPLOYMENTLAW WORK BOTH OFFICES FAILED PEPPER CLOSED ITS LOS ANGELES SHOP LAST YEAR SHEA THIS SUMMER CLOSED THE VESTIGES OF AN OFFICE THAT ONCE BOASTED 80 PEOPLE A FEW FIRMS WERE LURED BY SLICK MARKETING CAMPAIGNS LIKE THE ASIA PACIFIC LEGAL NETWORK ADMINISTERED BY THE LEGAL CONSULTING FIRM ALTMAN WEIL PENSA WHICH FOR A 30000 FEE PROMISED TO PUT FIRMS ON A SHORT LIST FOR REFERRALS OF POTENTIAL ASIAN CLIENTS THE PLAN WAS TO LINK US LAW FIRMS WITH ASIAN BUSINESS CONSULTANTS WHO WOULD NOTIFY THEM OF NEW BUSINESS OPPORTUNITIES IT NEVER GOT OFF THE GROUND THE NETWORK SAYS ALTMAN WEIL PRINCIPAL WARD BOWER WAS DEACTIVATED BECAUSE ONLY A FEW LAW FIRMS SIGNED ON THE FIRMS THEMSELVES DIDN'T APPEAR TO HAVE A COHERENT ASIA STRATEGY AT LEAST FROM AN INSTITUTIONAL STANDPOINT HE SAYS IT WAS MORE INDIVIDUALS OR PRACTICE GROUPS AND THEY WEREN'T ABLE TO INDUCE THEIR PARTNERS TO MAKE INVESTMENTS IN WHAT THE PARTNERS VIEWED AS THEIR INDIVIDUAL PRACTICES BUT AS IN ALL HISTORIC MIGRATIONS THE TROUBLES EXPERIENCED BY THE PIONEERS OF THIS MOVEMENT CAN BE INSTRUCTIVE AT LEBOEUF'S LOS ANGELES OFFICE PARTNER DEAN HANSELL SAYS THE OFFICE STILL REPRESENTS TWO JAPANESE CLIENTS MAZDA AND A BIG TOKYO INSURER AND IS LOOKING TO EXPAND AGAIN IN INTERVIEWING PEOPLE THESE DAYS MR HANSELL SAYS YOU'D WANT TO TAKE A GOOD HARD LOOK AT WHO THEIR CLIENTS REALLY ARE AND HOW SOLID THEY REALLY ARE TIME WAS THERE WAS A MYSTIQUE ABOUT JAPANESE COMPANIES THAT THEY WERE ONLY GOING TO GET BIGGER AND MORE ECONOMICALLY POWERFUL THAT'S CERTAINLY NOT THE CASE ANY MORE 9311050010 931105 BUSINESS BRIEF COMCAST CORP THIRDPERIOD LOSS NARROWED AS REVENUE INCREASED 52 COMCAST CORP SAID ITS LOSS NARROWED FOR THE THIRD QUARTER TO 357 MILLION OR 25 CENTS A SHARE FROM 523 MILLION OR 39 CENTS A SHARE OPERATING CASH FLOW A GOOD BAROMETER OF A CABLE COMPANY'S PERFORMANCE JUMPED TO 1543 MILLION FROM 985 MILLION REVENUE ROSE 52 TO 3354 MILLION FROM 2212 MILLION THE LATEST QUARTER RESULTS INCLUDED CONSOLIDATION OF METROPHONE CELLULAR PROPERTIES SINCE MARCH 1992 AND THE COMPANY'S 50 OWNERSHIP IN STORER COMMUNICATIONS SINCE DECEMBER 1992 THE PHILADELPHIA CABLE COMPANY NOTED THAT IT HAS BEEN ABLE TO REACH BROADCAST AGREEMENTS WITH LOCAL TELEVISION STATIONS AND HASN'T HAD TO DROP ANY PROGRAMMING AS A RESULT OF RECENT FEDERAL RATE REGULATION COMCAST SAID IT INSTITUTED RATE ADJUSTMENTS FOR ALMOST ALL OF ITS CUSTOMERS EFFECTIVE SEPT 1 9311050009 931105 CAMPO'S OCTOBER SALES DOUBLED NEW ORLEANS LA CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC SAID OCTOBER SALES MORE THAN DOUBLED TO 143 MILLION FROM 64 MILLION A YEAR AGO SAMESTORE SALES ROSE 163 THE COMPANY DIDN'T DISCLOSE YEARTODATE SALES 9311050008 931105 REVIEW & OUTLOOK EDITORIAL ASIDES CASE CLOSED THE NARROW VICTORY OF BRENDAN O'SMARTY THE VENTRILOQUIST COP'S DUMMY IN SAN FRANCISCO'S ELECTION TUESDAY OVERSHADOWED A MORE DECISIVE AND SERIOUS RESULT THERE VOTERS BY 61 TO 39 OK'D PROPOSITION V TO LIMIT THE WELFARE INCENTIVES TO BUM AROUND TOWN COMING AS IT DOES IN ONE OF THE NATION'S PREMIER VENUES FOR THE HOMELESS THIS IS ONE BIG NAIL IN THE COFFIN OF URBAN LIBERALISM NO MAYOR ANYWHERE SHOULD MISTAKE THE MANDATE GET THE WORST OFFENDERS OFF THE STREETS AND INTO DETOX BEHIND INSTITUTIONAL WALLS OR ON THE NEXT BUS OUT 9311050006 931105 TECHNOLOGY & HEALTH NEW STUDY LINKS CHINESE HOROSCOPES AND AGE AT DEATH CALIFORNIA RESEARCHERS SUGGEST PEOPLE'S BELIEF IN ASTROLOGY INFLUENCES WHEN THEY DIE BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA RESEARCHERS SAY THERE MAY BE SOMETHING TO THE BELIEF THAT ASTROLOGY IS DESTINY IN CHINESE ASTROLOGY CERTAIN COMBINATIONS OF BIRTH SIGNS AND DISEASES ARE CONSIDERED ILLFATED RESEARCHERS AT THE UNIVERSITY OF CALIFORNIA SAN DIEGO EXAMINED MORE THAN 28000 DEATH CERTIFICATES OF PERSONS CODED AS CHINESE IN CALIFORNIA AND FOUND THAT PEOPLE WITH SUCH COMBINATIONS DIED EARLIER THAN EXPECTED THE RESEARCHERS ATTRIBUTED THIS TO THE VICTIMS' BELIEFS IN THE ASTROLOGICAL PREDICTIONS THE LINK WASN'T FOUND AMONG PERSONS CODED AS WHITE NANCY CHEN A MEDICAL ANTHROPOLOGIST AT TUFTS UNIVERSITY SAID THE STUDY'S DESIGN RAISED MANY QUESTIONS ABOUT OTHER FACTORS THAT MAY BE AT WORK SUCH AS DIET OR ACCESS TO MEDICAL CARE BUT SHE ADDED A PERSON'S BELIEFS PLAY A VERY IMPORTANT ROLE POSITIVE AND NEGATIVE IN AFFECTING THE OUTCOME IN ANY ILLNESS THE STUDY WILL BE PUBLISHED IN TOMORROW'S ISSUE OF LANCET A BRITISH MEDICAL JOURNAL SOCIAL SCIENTISTS HAVE LONG LOOKED INTO THE POSSIBILITY THAT PEOPLE CAN INFLUENCE WHEN THEY DIE LAST YEAR THE SAME CALIFORNIA RESEARCHERS REPORTED THAT IN THE GENERAL POPULATION PEOPLE ARE MORE LIKELY TO DIE IN THE WEEK AFTER THEIR BIRTHDAY THAN IN ANY OTHER WEEK OF THE YEAR ANOTHER STUDY FOUND PEOPLE HELD ON UNTIL AFTER SPECIAL OCCASIONS TO DIE ANECDOTES ABOUND OF PEOPLE WHO DON'T DIE UNTIL AFTER THEIR 50TH WEDDING ANNIVERSARY THE BIRTH OF A GRANDCHILD OR THE ARRIVAL OF FAMILY MEMBERS AT THE BEDSIDE THE WILL TO LIVE APPARENTLY CAN PROLONG LIFE BUT THE REVERSE ALSO APPEARS TO BE TRUE ACCORDING TO THE CHINESE HOROSCOPE STUDY EACH OF THE FIVE HOROSCOPE SIGNS IN CHINESE ASTROLOGY IS ASSOCIATED WITH AN ORGAN OR SYMPTOM THE FIRE SIGN FOR EXAMPLE IS LINKED TO THE HEART AND SOMEONE BORN IN THE FIRE YEAR OF 1907 WOULD BE UNUSUALLY SUSCEPTIBLE TO HEART DISEASE PEOPLE WHO DEVELOP A DISEASE ASSOCIATED WITH THEIR BIRTH SIGNS MAY BE MORE LIKELY THAN OTHERS TO RESIGN THEMSELVES TO THEIR FATE AND FEEL HELPLESS HOPELESS OR STOIC ACCORDING TO THE RESEARCHERS DAVID P WILLIAMS TODD E RUTH AND LISA WAGNER THE RESEARCHERS STUDIED DEATH CERTIFICATES OF 28169 ADULT CHINESE AND 412632 WHITES ALL IN CALIFORNIA CHINESE PEOPLE DIED SIGNIFICANTLY EARLIER THAN NORMAL IF THEY HAD AN ILLFATED DISEASE CHINESE BORN IN A METAL YEAR WHO DEVELOPED AN ILLFATED LUNG DISEASE SUCH AS BRONCHITIS EMPHYSEMA OR ASTHMA DIED NEARLY FIVE YEARS EARLIER THAN CHINESE WITH SIMILAR CONDITIONS BORN UNDER DIFFERENT SIGNS AMONG PERSONS CODED AS WHITE THERE WAS VIRTUALLY NO DIFFERENCE IN THE AGE AT DEATH ACCORDING TO THEIR BIRTH YEAR THE LINKAGE BETWEEN EARLY DEATH AND ADVERSE ASTROLOGICAL SIGNS WAS MORE PRONOUNCED AMONG PEOPLE WHO WERE IDENTIFIED THROUGH THE DEATH CERTIFICATES AS COMMITTED TO TRADITIONAL CHINESE CULTURE THE RESEARCHERS SAID THEY ASSUMED CHINESEAMERICANS BORN IN CHINA WERE TRADITIONALISTS AS WERE THOSE WHOSE FAMILIES REFUSED AUTOPSIES 9311050005 931105 INTERNATIONAL PHILIPS NV HAS QUARTERLY PROFIT AFTER LOSS IN '92 SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM PHILIPS ELECTRONICS NV SWUNG TO A PROFIT FROM NORMAL BUSINESS OPERATIONS IN THE THIRDQUARTER FROM A NET LOSS A YEAR EARLIER IT WAS BUOYED BY HIGHER SALES MORE EFFICIENT OPERATIONS AND LOWER NET FINANCING COSTS BUT THE DUTCH ELECTRONICS CONCERN SAID IT WOULDN'T PAY AN INTERIM DIVIDEND AND WARNED THAT IT EXPECTS TO FACE SLACK MARKETS FOR ITS PRODUCTS NEXT YEAR ESPECIALLY IN EUROPE AS ECONOMIES AREN'T LIKELY TO RECOVER BROADLY IF AT ALL FOR PLANNING PURPOSES WE ASSUME LIFE REMAINS DIFFICULT FOR 1994 AS IT HAS BEEN IN 1993 DUDLEY EUSTACE PHILIPS FINANCE DIRECTOR SAID AT A NEWS CONFERENCE MR EUSTACE DECLINED TO GIVE A PRECISE FORECAST FOR SALES AND EARNINGS NEXT YEAR OR FOR THE 1993 FOURTHQUARTER BUT HE SAID EUROPE IS THE KEY TO PHILIPS'S PROSPECTS PROFIT FROM NORMAL OPERATIONS TOTALED 133 MILLION GUILDERS 70 MILLION IN THE QUARTER COMPARED WITH A YEAREARLIER LOSS OF 139 MILLION GUILDERS RESULTS WERE ABOVE MARKET EXPECTATIONS THE COMPANY NOTED THAT IT MADE AN EXTRAORDINARY GAIN OF ABOUT 400 MILLION GUILDERS FROM THE SALE OF NEW SHARES OF ITS FILMED ENTERTAINMENT AND MUSIC COMPANY SUBSIDIARY POLYGRAM NV BUT THAT THE MONEY HAS BEEN SET ASIDE AS A PROVISION TO COVER POSSIBLE LOSSES RELATED TO DIVESTMENTS IN THE THIRDQUARTER ANY REMAINDER WILL BE BOOKED AT THE END OF THE YEAR PHILIPS SAID SALES IN THE THIRDQUARTER ROSE 4 TO 1413 BILLION GUILDERS FROM 1363 BILLION A YEAR AGO ADJUSTED FOR EXCHANGE RATES AND CHANGES RELATED TO CONSOLIDATIONS SALES INCREASED AROUND 1 NET FINANCING CHARGES DROPPED SHARPLY TO 296 MILLION GUILDERS FROM 475 MILLION PHILIPS SAID THE FINANCING DEFICIT IN THE MOST RECENT REPORTING PERIOD WAS DUE LARGELY TO POLYGRAM'S ACQUISITION OF RECORDING COMPANY MOTOWN PHILIPS'S ALLIMPORTANT CONSUMER ELECTRONICS OPERATIONS CONTINUED TO BE IN THE RED ALTHOUGH LOSSES NARROWED TO 107 MILLION GUILDERS FROM 150 MILLION A YEAR EARLIER THE LOSSES WERE DUE LARGELY TO AN ONGOING WEAKNESS IN EUROPEAN MARKETS AND IN SPITE OF PHILIPS'S EXPANDED EUROPEAN MARKET SHARE BUT MR EUSTACE REPEATED THAT PHILIPS STILL EXPECTS THE CONSUMER ELECTRONICS DIVISION TO BREAK EVEN SOME TIME NEXT YEAR THE EXECUTIVE ADDED THAT PHILIPS IS HOLDING TALKS WITH UNSPECIFIED PARTIES OVER THE DISPOSAL OF ADDITIONAL ASSETS HE DECLINED TO BE MORE SPECIFIC BUT HE DID SAY THE SCOPE FOR SUBSTANTIAL PROCEEDS FROM ASSET SALES IS NARROWING AFTER SOME BIG TRANSACTIONS IN RECENT YEARS WE ARE MAKING ALL THE ASSETS SWEAT HE SAID INDICATING THE COMPANY AIMS TO GET THE MOST OUT OF ALL ITS ASSETS THROUGH SAVVY MANAGEMENT 9311050004 931105 CHRISTOPHER SAYS RUSSIAN POLICY POSES NO THREAT US CONTINUES TO SUPPORT YELTSIN AMID CHANGES TO MILITARY DOCTRINE BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STICKING BY RUSSIAN PRESIDENT BORIS YELTSIN SECRETARY OF STATE WARREN CHRISTOPHER OFFERED A SANGUINE VIEW OF MOSCOW'S NEW MILITARY DOCTRINE ASSERTING THAT IT DOESN'T THREATEN EITHER THE WEST OR RUSSIA'S NEIGHBORS IN A SENATE FOREIGN RELATIONS COMMITTEE APPEARANCE THAT FEATURED A SIZZLING ATTACK BY GOP SEN JESSE HELMS ON THE CLINTON ADMINISTRATION'S FOREIGN POLICY MR CHRISTOPHER CHARACTERIZED RUSSIA'S NEW MILITARY APPROACH AS RUSSIAN MILITARY DOCTRINE TRYING TO CATCH UP WITH THE NEW REALITY IN RUSSIA HE COMPARED IT TO A SIMILAR EXERCISE IN THE US AND SAID THAT MR YELTSIN AND OTHER TOP RUSSIAN OFFICIALS HAVE REGULARLY CONFIRMED THAT ANY MILITARY OPERATIONS OUTSIDE THEIR BORDERS WOULD ADHERE STRICTLY TO INTERNATIONAL RULES OF BEHAVIOR MOSCOW'S DOCTRINE ASSIGNS A NEW ROLE TO RUSSIAN TROOPS UNDER WHICH THEY WOULD JOIN PEACEKEEPING FORCES IN OTHER COUNTRIES PARTICULARY THE FORMER SOVIET REPUBLICS AND BE DEPLOYED TO QUELL DOMESTIC CONFLICTS THE DOCTRINE ALSO REVERSES THE SOVIET UNION'S PLEDGE TO NOT BE THE FIRST TO USE NUCLEAR WEAPONS IN A CONFLICT MR CHRISTOPHER RESPONDED TO SOME SKEPTICAL QUESTIONS AND CONCERNS ABOUT SIGNS OF NASCENT RUSSIAN IMPERIALISM RAISED BY SEN RICHARD LUGAR R IND SAYING I THINK PRESIDENT YELTSIN IS THE BEST ALLY WE HAVE AMONG THE CHOICES IN RUSSIA TODAY TO KEEP THAT IN BOUNDS DESPITE THE CONTINUING UNCERTAINTY IN RUSSIA WHICH COULD RENDER DOCTRINES AND PROMISES MEANINGLESS THE ADMINISTRATION IS DETERMINED TO BACK MR YELTSIN AS LONG AS HE FOLLOWS THE PATH OF REFORM THE SECRETARY SAID MOSCOW'S CHANGE REGARDING FIRST USE OF NUCLEAR WEAPONS WASN'T SIGNIFICANT BECAUSE THE US HAD NEVER TAKEN SERIOUSLY THE SOVIET UNION'S PROMISE NOT TO INITIATE A NUCLEAR ATTACK MR CHRISTOPHER WHO RETURNED RECENTLY FROM A TRIP TO RUSSIA SAID HIS ASSESSMENT OF THE MILITARY DOCTRINE WAS BASED ON HIS PRIVATE CONVERSATIONS WITH RUSSIAN OFFICIALS WITH THE ADMINISTRATION CONFRONTING SHARP DEBATE OVER WHETHER THE NATION'S VITAL INTERESTS ARE AT STAKE IN SUCH PLACES AS HAITI AND SOMALIA MR CHRISTOPHER BEGAN YESTERDAY'S HEARING BY RESTATING THE ADMINISTRATION'S FOREIGNPOLICY PRIORITIES HE EMPHASIZED PROMOTING US ECONOMIC SECURITY AND INTERESTS PARTICULARLY IN ASIA AS WELL AS ON THE NEED TO SUPPORT REFORM IN RUSSIA AND POSTCOLD WAR TRANSITION IN EUROPE THERE IS BROAD BIPARTISAN AGREEMENT ABOUT THE IMPORTANCE OF MOST OF THESE AREAS AT THE SAME TIME MR CHRISTOPHER DISTANCED THE US FROM TROUBLESOME CONFLICTS WHERE AMERICAN STRATEGIC INTERESTS WEREN'T INVOLVED HE CITED PROBLEMS IN SUCH REGIONS AS THE RIM OF THE OLD SOVIET UNION AND IN AFRICA REALISM MUST GUIDE US POLICY TOWARD THESE CONFLICTS SOME TOUCH OUR INTERESTS OR WILL IF THEY ARE NOT CHECKED BUT WE MUST ACCEPT THAT OTHER CONFLICTS MAY NOT HE SAID SEN HELMS OF NORTH CAROLINA IMMEDIATELY LASHED OUT AT THE USE OF US TROOPS IN SOMALIA AND THEIR POSSIBLE USE IN HAITI EVOKING THE IMAGE OF ARLINGTON NATIONAL CEMETERY SEN HELMS SAID THERE ARE VERY FEW THERE IF ANY MR SECRETARY WHO DIED FOR LESS REASON THAN THOSE AMERICANS WHOSE LIVES WERE DESTROYED AT MOGADISHU WHERE THEY WERE SENT ON A USELESS MISSION OF WHAT DO YOU CALL IT NATIONBUILDING SEN HELMS CHALLENGED MR CHRISTOPHER TO DEFEND THE ADMINISTRATION'S SUPPORT FOR JEANBERTRAND ARISTIDE HAITI'S PRESIDENT WHO WAS DEPOSED IN A MILITARY COUP MR CHRISTOPHER CITING THE NEED TO PROTECT CLASSIFIED INFORMATION REFUSED TO DISCUSS CENTRAL INTELLIGENCE AGENCY REPORTS THAT RAISED QUESTIONS ABOUT MR ARISTIDE'S MENTAL STABILITY BUT HE INSISTED THAT WE HAVE A LOT OF INFORMATION ABOUT THE SITUATION IN HAITI A LOT OF INFORMATION ABOUT PRESIDENT ARISTIDE AND BASED UPON ALL OF THAT EVIDENCE WE THINK HE'S WORTHY OF OUR SUPPORT WHEN SEN HELMS PERSISTED HIS AGGRESSIVE QUESTIONING PRODUCED A RARE OUTBURST OF PUBLIC ANGER FROM THE MILDMANNERED MR CHRISTOPHER A FEW PEOPLE HAVE SOMETIMES MISUNDERSTOOD MY COURTESY FOR A LACK OF RESOLVE BUT I THINK THEY'VE BEEN SORRY WHEN THEY'VE MADE THAT MISTAKE HE SAID COLDLY 9311050003 931105 AMERICAN GREETINGS HALLMARK'S CARDS WILL SEND AN EARFUL CHIP INSIDE RECORDS SOUND BYTE FROM SENDER TO A DEAR ONE IF CONSUMER PAYS DEARLY BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S TOP TWO CARD MAKERS BETTING THAT CONSUMERS WILL PAY DEARLY TO SEND A SOUND BYTE TO A LOVED ONE SAID THEY WILL ROLL OUT TALKING AND SINGING GREETING CARDS EARLY NEXT YEAR THE FIRST ONE TO MARKET IS NO 1 CARD MAKER HALLMARK CARDS INC OF KANSAS CITY MO HALLMARK HAS ALREADY BEGUN TEST MARKETING ITS RECORDABLE GREETING CARDS PRICED AT 795 EACH AND WILL ROLL THEM OUT NATIONWIDE BY JANUARY THE CARDS HAVE A CHIP INSIDE THAT CAN RECORD A MESSAGE OF UP TO 10 SECONDS FROM THE SENDER THE CHIP MADE BY CLOSELY HELD INFORMATION STORAGE DEVICES INC OF SAN JOSE CALIF PLAYS THE MESSAGE AUTOMATICALLY WHEN THE CARD IS OPENED THE MESSAGE CAN BE RERECORDED AT ANY TIME THE LINE HAS ONLY THREE CARDS SO FAR ONE FOR BIRTHDAYS AN ALLOCCASION CARD FOR THE OFFICE CROWD AND A GENERIC CARD FOR A SPECIAL DAY NEXT YEAR HALLMARK WILL INTRODUCE A VALENTINE'S DAY VERSION AMERICAN GREETINGS CORP CLEVELAND THE NO 2 PLAYER IN THE MARKET SAID IT WILL PRODUCE 995 RECORDABLE GREETING CARDS AS PART OF ITS 50CARD SOUND SURPRISES LINE NEXT FEBRUARY THAT LINE ALSO INCLUDES CARDS WITH PRERECORDED SOUND EFFECTS AND GREETINGS IT WILL BE ADVERTISED WITH A MOTIONSENSITIVE DISPLAY WHICH TALKS TO CONSUMERS AS THEY PASS BY AMERICAN GREETINGS' RECORDABLE CARDS WHICH COST 2 MORE THAN THE HALLMARK CARDS HAVE CHIPS THAT RECORD A 20SECOND MESSAGE THE IMAGE CAN BE RECORDED OVER BUT THE CARD CAN ALSO BE SET TO SAVE THE ORIGINAL MESSAGE UNLIKE THE HALLMARK CARDS THE AMERICAN GREETINGS CARDS ARE HUMOROUS AND MORE EVENT SPECIFIC BUT CUSTOMERS WHO SAW THE HALLMARK CARD YESTERDAY SAID THEY'D HAVE TO THINK TWICE ABOUT PLUNKING DOWN 8 TO 10 FOR A BRIEF SOUND BYTE ESPECIALLY WHEN THE SAME AMOUNT OF MONEY COULD BUY AN HOUR OF LONGDISTANCE PHONE TIME WHAT'S MORE THE CARDS ARE BIG AND COST EXTRA MONEY TO MAIL IT TAKES 145 FIVE 29CENT STAMPS TO MAIL THE HALLMARK CARD WHICH IS HALF AN INCH THICK TO MAKE ROOM FOR THE CHIP SPEAKER MICROPHONE BATTERIES AND WIRES AND FORGET ABOUT TOSSING IT IN THE MAILBOX THE HALLMARK CARDS MUST BE HANDCANCELED SO THE SPEAKER DOESN'T GET SMASHED YOU CAN PROBABLY SEND A TAPE FOR LESS SNIFFS JERRY WIGTON A PITTSBURGH HOMEMAKER AFTER LOOKING AT THE CARD I KNOW I WOULDN'T SEND IT SHE SAYS EXPLAINING THAT SHE PREFERS ANOTHER HALLMARK PRODUCT COMPUTERIZED CARDS THAT ENABLE HER TO LASER PRINT HER PERSONAL MESSAGE ONTO A FULLCOLOR HALLMARK CARD THE AMERICAN GREETINGS CARDS WILL ONLY REQUIRE TWO FIRSTCLASS STAMPS TO MAIL BUT DON'T NEED TO BE HANDCANCELED THE COMPANY SAID IT'S UNCLEAR WHETHER THE AMERICAN GREETINGS WILL BE MORE APPEALING FOR THEIR LONGER RECORDING TIME MS WIGTON'S HUSBAND PHYSICIAN BILL WIGTON SAYS HE PROBABLY WOULDN'T BUY THE CARD BECAUSE IT TAKES ME LONGER THAN 10 SECONDS TO EXPRESS A FEELING HE COULDN'T BE REACHED TO COMMENT ABOUT WHETHER 20 SECONDS WOULD DO THE TRICK BUT THE COMPANY THAT MADE THE CHIP FOR THE HALLMARK CARDS INFORMATION STORAGE DEVICES SAYS IN TESTS CONSUMERS DIDN'T WANT TO RECORD LONGER MESSAGES PEOPLE RUN OUT OF THINGS TO SAY NOT EVERYONE'S LOQUACIOUS SAYS PRESIDENT AND CHIEF EXECUTIVE DAVID ANGEL INDUSTRY EXPERTS FIGURE THE CARD WILL HOLD BIG APPEAL FOR GRANDPARENTS WHO WANT TO HEAR GRANDCHILDREN'S VOICES AND FOR LOVERS INDEED ONE PITTSBURGH SHOPPER RETAIL MANAGEMENT STUDENT CHRIS LYKENS SAID SHE'D LIKE TO BUY A ROMANTIC VERSION OF THE CARD BUT SHE WOULDN'T BE A FREQUENT BUYER I'D HAVE TO REALLY CARE ABOUT THE PERSON TO BUY IT SHE SAYS THE RECORDABLE CARDS FOLLOW TWO RECENT INNOVATIONS IN THE GREETING CARD INDUSTRY SINCE 1990 HALLMARK AND AMERICAN GREETINGS CORP HAVE INTRODUCED COMPUTERIZED CARDS AND LATER THIS MONTH HALLMARK BEGINS SHIPPING A 6 GREETING CARD THAT INCLUDES A CODE THAT'S GOOD FOR A 10MINUTE LONGDISTANCE PHONE CALL PRESUMABLY TO THE SENDER OF THE CARD 9311050001 931105 SERIES OF WHITE HOUSE DEALS ON NAFTA DON'T SEEM TO DRAW NEW CONGRESS VOTES BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IF THE WHITE HOUSE HAS PICKED UP THE VOTES IT HOPED FOR WITH A SERIES OF DEALS ON THE NORTH AMERICAN FREE TRADE AGREEMENT IT'S A WELLKEPT SECRET A DAY AFTER THE CLINTON ADMINISTRATION'S ANNOUNCEMENT THAT MEXICO HAD AGREED TO CONCESSIONS FOR US PRODUCERS OF SUCH PRODUCTS AS SUGAR CITRUS AND FLAT GLASS NOT ONE ADDITIONAL HOUSE MEMBER CAME FORWARD TO ANNOUNCE SUPPORT FOR THE TRADE AGREEMENT WITH MEXICO AND CANADA WITH THE NOV 17 VOTE LESS THAN TWO WEEKS AWAY THE PRONAFTA FORCES NEED AS MANY AS 50 MORE VOTES PROPONENTS HAD SAID THE CONCESSIONS COULD MEAN A DOZEN TO 20 VOTES FOR NAFTA AS THE BATTLE OVER NAFTA APPROACHES ITS CLIMAX THE ADMINISTRATION AND ITS CHIEF ANTAGONIST AGREED TO DEBATE THE ISSUE ALTHOUGH THE TERMS OF THE MATCHUP HAVEN'T BEEN SETTLED VICE PRESIDENT AL GORE CHALLENGED TEXAS BILLIONAIRE ROSS PEROT YESTERDAY MORNING TO A DEBATE ON THE CNN PROGRAM LARRY KING LIVE THE DATE AND TIME TO BE DETERMINED MR PEROT RESPONDED YESTERDAY AFTERNOON WITH TIMES AND PLACES FOR THREE DEBATES THIS SUNDAY AT 2 PM IN TAMPA FLA NEXT WEDNESDAY EVENING IN DETROIT AND THE AFTERNOON OF NOV 14 IN SEATTLE MR PEROT WHO EARLIER IN THE DAY CALLED NAFTA DEAD ON ARRIVAL WANTS TO DEBATE BEFORE A LIVE AUDIENCE WITH FIRSTCOME FIRSTSERVED SEATING PAT CHOATE A WASHINGTON ECONOMIST AND COAUTHOR OF A RECENT ANTINAFTA BOOK WITH MR PEROT WARNED ROSS PEROT REALLY KNOWS THIS SUBJECT AS THE WHITE HOUSE IS GOING TO FIND OUT REP ROBERT MATSUI THE CALIFORNIA DEMOCRAT WHO'S A LEADER OF THE FIGHT FOR NAFTA INSISTED YESTERDAY THERE'S MOMENTUM NOW ON OUR SIDE AND HOUSE SPEAKER THOMAS FOLEY D WASH ANOTHER SUPPORTER AGREED THAT THE RECENT SERIES OF DEALS WOULD HELP SWAY UP TO 20 LAWMAKERS THEY'RE FIRMING UP SOME VOTES HE SAID BUT THE GAINS WEREN'T APPARENT EVEN WHEN THE PRONAFTA FORCES CALLED A NEWS CONFERENCE TO BOAST OF THE AGREEMENT WITH MEXICO TO PROTECT US SUGAR GROWERS FROM SURGES IN IMPORTS FROM THE SOUTH REP BILL RICHARDSON D NM ANOTHER PRONAFTA HOUSE LEADER SAID ABOUT 10 HOUSE MEMBERS ULTIMATELY WOULD BE WON OVER BY THE AGREEMENTS ON SUGAR AND CITRUS BUT MOST OF THE 14 HOUSE AND SENATE LAWMAKERS AT YESTERDAY'S NEWS CONFERENCE WERE WELLKNOWN NAFTA SUPPORTERS NOTABLY ABSENT WAS LOUISIANA REP BILLY TAUZIN I REPRESENT 25000 PEOPLE IN THE SUGAR INDUSTRY AND UNDER NAFTA THEY CAN ALL START LOOKING FOR JOBS THE DEMOCRAT WAS QUOTED IN NAFTA NOTES A DAILY REPORT FROM NAFTA FOES EVEN WITH ANY SIDE AGREEMENT SOONER OR LATER SUGAR FLOWS FREELY FROM MEXICO AND THE US SUGAR INDUSTRY IS DEAD BOTH OF LOUISIANA'S DEMOCRATIC SENATORS AS EXPECTED ENDORSED NAFTA AS A CONSEQUENCE OF THE SUGAR CONCESSION AS DID IDAHO'S TWO GOP SENATORS NAFTA ALREADY IS CONSIDERED A SAFE BET IN THE SENATE ALTHOUGH SENATORS WOULDN'T GET A CHANCE TO VOTE IF THE HOUSE DEFEATS THE ACCORD LOUISIANA SEN JOHN BREAUX WHO'S BEEN WORKING CLOSELY WITH THE ADMINISTRATION SAID THE EFFORT TO WOO UNDECIDED HOUSE MEMBERS WAS A CONTINUING PROCESS I DON'T CARE HOW MANY VOTES WE HAVE NOV 4 SEN BREAUX SAID I CARE HOW MANY VOTES WE HAVE NOV 17 DEMOCRATIC REP JIM BACCHUS AN UNDECIDED FLORIDIAN WHO'S NEVERTHELESS BEEN WORKING CLOSELY WITH THE ADMINISTRATION ON NAFTA PREDICTED THAT AT LEAST HALF OF HIS STATE'S 23 HOUSE MEMBERS WOULD ULTIMATELY VOTE FOR NAFTA AND SAID IT'S NONSENSE TO SUGGEST THE CONCESSIONS AND DEALS HAVE BEEN DUDS AS FAR AS VOTEGETTING IT'S PERFECTLY REASONABLE REP BACCHUS SAID THAT UNDECIDED LAWMAKERS WOULD TAKE A FEW DAYS TO READ THE FINE PRINT HE NOTED THAT THE HUGELY INFLUENTIAL FLORIDA CITRUS MUTUAL THE MAIN TRADE ASSOCIATION NOW ENDORSES NAFTA REP PETER HOAGLAND A DEMOCRAT FROM THE SUGAR BEETPRODUCING STATE OF NEBRASKA SOUNDED A MORE OMINOUS NOTE FOR THE WHITE HOUSE REP HOAGLAND WHO'S UNDECIDED BUT SAYS HE SEES MERITS IN NAFTA SAID MY SENSE IS EVENTS HAVE OVERTAKEN WHATEVER GOOD THESE ADDITIONAL AGREEMENTS MIGHT HAVE DONE THE ONLY UNDECIDED HOUSE MEMBER WHO ANNOUNCED A POSITION YESTERDAY CAME OUT AGAINST THE PACT DEMOCRATIC REP JIM SLATTERY WHO'S RUNNING FOR GOVERNOR OF KANSAS AGAINST ANTINAFTA CANDIDATES SAID A BETTER DEAL SHOULD BE NEGOTIATED FOR US WORKERS BUT THE WHITE HOUSE SAID IT NOW COUNTS REP MARILYN LLOYD D TENN AS A SUPPORTER MEANWHILE THE PRESIDENT'S POLLSTER STANLEY GREENBERG PROVOKED SOME CATCALLS AT A MEETING YESTERDAY OF HOUSE DEMOCRATS WHEN HE SOUGHT TO ARGUE THAT A VOTE FOR NAFTA WASN'T A POLITICALLY RISKY ONE REP DAVID OBEY D WIS A NAFTA FOE BRANDISHED IN TURN THE POLL RESULTS OF DEMOCRATIC CONSULTANTS MARK MELLMAN AND CELINDA LAKE SUGGESTING THAT A PRONAFTA VOTE COULD BE POLITICALLY HAZARDOUS MR MELLMAN LATER BRIEFED ABOUT 30 HOUSE DEMOCRATS ON HIS FINDINGS AT THE INVITATION OF ANTINAFTA LAWMAKERS SOME UNDECIDED HOUSE DEMOCRATS ARE INCREASINGLY EDGY AFTER THIS WEEK'S ELECTIONS WHICH PRODUCED NOTABLE VICTORIES FOR REPUBLICANS BUT GENERALLY SENT AN ANTIINCUMBENT MESSAGE TAKING HIS CAMPAIGN FOR NAFTA TO LEXINGTON KEN PRESIDENT CLINTON REJECTED ASSERTIONS THAT THE GOP VICTORIES MADE IT TOUGHER FOR CONGRESS TO PASS THE AGREEMENT WHAT IN THE WORLD WOULD THAT HAVE TO DO WITH ANYTHING MR CLINTON TOLD REPORTERS THE PRESIDENT SAID IT WAS JUST A WASHINGTON STORY TO LINK TUESDAY'S ELECTIONS TO NAFTA AND ARGUED THAT THE RESULTS WERE ACTUALLY GOOD NEWS FOR THE TRADE PACT NEW JERSEY GOV JIM FLORIO AND NEW YORK MAYOR DAVID DINKINS LOST BECAUSE THE PUBLIC WANTED CHANGE MR CLINTON SAID AND NAFTA IS CHANGE YESTERDAY AFTERNOON ADMINISTRATION OFFICIALS OUTLINED SEVERAL MORE PROVISIONS INSERTED INTO NAFTA LEGISLATION TO WOO LAWMAKERS ESPECIALLY IN THE SOUTHEAST ONE PROVISION WOULD REQUIRE IMPORTS OF PEANUT BUTTER TO MEET THE SAME STANDARDS FOR AFLATOXIN A CARCINOGEN PRODUCED IN STORAGE BY MOLDS AS DOMESTIC PEANUT BUTTER THAT PROVISION IS MEANT TO ASSURE PEANUT GROWERS THAT IMPORTS WON'T HAVE TO MEET LESSER ENVIRONMENTAL STANDARDS THAN USGROWN CROPS ANOTHER PROVISION WOULD REQUIRE THAT DOMESTICCONTENT PROVISIONS CONCERNING TEXTILES AND APPAREL COULD BE CHANGED ONLY BY LAW NOT REGULATION AN ADMINISTRATION OFFICIAL ALSO SAID THAT A PROVISION ALLOWING EXPEDITED INQUIRIES INTO WHETHER IMPORTS OF WINTERGROWN TOMATOES AND PEPPERS ARE HARMING US PRODUCERS DIDN'T REQUIRE APPROVAL FROM THE MEXICAN GOVERNMENT ADMINISTRATION OFFICIALS PREVIOUSLY CHARACTERIZED THE MEASURE AS AN AGREEMENT WITH MEXICO INSTEAD IT IS SIMPLY A CHANGE IN US PRACTICE SEPARATELY UNIONS FOR CARPENTERS AND OPERATING ENGINEERS SAID THEIR PENSION FUNDS PLAN TO FILE SHAREHOLDER PROPOSALS WITH AT LEAST 15 MAJOR COMPANIES ASKING THEM TO JUSTIFY THEIR SUPPORT FOR NAFTA THE PROPOSAL ALSO WOULD ASK COMPANIES TO SAY WHETHER THEY MIGHT MOVE OPERATIONS TO MEXICO IF THE PACT IS APPROVED JOHN HARWOOD AND ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE IDAHO'S TWO REPUBLICAN SENATORS REMAIN UNDECIDED AND ARE LEANING AGAINST VOTING FOR THE NORTH AMERICAN FREE TRADE AGREEMENT THEIR OFFICES SAID DESPITE THEIR APPEARANCE THURSDAY AT A PRONAFTA NEWS CONFERENCE PRAISING A CONCESSION FOR SUGAR GROWERS IT WAS INCORRECTLY REPORTED IN AN ARTICLE FRIDAY THAT THEY HAD DECIDED TO SUPPORT THE TRADE PACT 9311050140 931004 LEISURE & ARTS TELEVISION A NEW FRANKNESS ABOUT RACE AND CRIME BY DOROTHY RABINOWITZ TWO FACTS SHOULD HAVE BEEN CLEAR IF THEY WEREN'T BEFORE TO ANYONE WATCHING NETWORK NEWS RECENTLY ONE IS THE DEGREE TO WHICH VIOLENT CRIME NOW LOOMS OVER AMERICAN LIFE AS THE CONCERN THAT SURPASSES ALL OTHERS THE OTHER IS THAT WE ARE AS A RESULT WITNESSING A SMALL BUT SIGNIFICANT CHANGE IN THE LEVEL OF FRANKNESS VERBAL AND ESPECIALLY VISUAL NOW ALLOWED TO PENETRATE MEDIA DISCUSSION OF THE SUBJECT ON TUESDAY NIGHT FOR EXAMPLE TWO NETWORKS CARRIED THE STORY OF THE PREVIOUS DAY'S ASSAULT AND ROBBERY OF THE VIETNAMESE OWNERS OF A JEWELRY STORE IN WASHINGTON DC ABC'S WORLD NEWS TONIGHT AIRED A SECURITYCAMERA TAPE OF THE EVENT AS DID IN EXPURGATED FORM THE CBS EVENING NEWS IN THE MORE DETAILED VERSION ON ABC VIEWERS COULD SEE IN THE UPPERLEFT CORNER OF THE SCREEN A TERRIFIED MIDDLEAGED CLERK GETTING HIS HEAD BASHED THEY COULD HEAR AND SEE THE THUGS SHOUT AND DRAG A FEMALE CLERK AROUND AND THEY COULD NEXT SEE THE INVADER POUND HER IN THE FACE WITH HIS GUN BUTT THE CAMERA SHOWED THE ROBBERS SWEEPING THE CONTENTS OF THE JEWELRY COUNTER INTO A PLASTIC GARBAGE BAG AND FINALLY THEY COULD SEE THE HULKING FIGURE OF THE MAN IN A SHIRT WITH FLOWING BLACKANDWHITE CHECKERBOARD SLEEVES DELIBERATELY TURN BEFORE LEAVING TO PUMP THREE SHOTS POP POP POP INTO THE BODY OF THE STORE OWNER THE CAMERA CAUGHT EVERY PART OF THIS FINAL ASSAULT EXCEPT FOR THE FIGURE OF THE VICTIM WHO WAS OUT OF RANGE THE FLORIDA TOURIST MURDERS MAY HAVE ADDED MOMENTUM TO THIS NEW CANDOR BUT THEY ARE HARDLY THE REASON THAT CRIME IS IN THE FOREFRONT OF THE NEWS THE REAL REASON IS THE NUMBER AND KIND OF ASSAULTS MURDERS AND OTHER DEPREDATIONS COMMITTED BY A HARD CORE OF YOUNG CRIMINALS OPERATING IN OUR CITIES IT BECOMES MORE DIFFICULT DAILY FOR EDITORS TO SHRUG OFF THE CURRENT KIND OF DAYTODAY CRIMINALITY BY ASKING SO WHAT ELSE IS NEW THE NEWS IS THAT THERE IS SOMETHING NEW GOING ON IN THIS SOCIETY NAMELY THE MULTIPLYING POPULATION OF CRIMINALS KILLING AND TERRORIZING AS MUCH FOR FUN IF NOT MORE AS FOR PROFIT THIS TRUTH AND THE INCREASE IN CERTAIN EXTRAORDINARILY CRUEL CRIMES OF WHICH THE ASSAULT ON THE CENTRAL PARK JOGGER REMAINS A PRIME EXAMPLE MAY ALSO SPUR A MORE FORTHRIGHT EXAMINATION OF THE ROLE RACE PLAYS IN ALL THIS SUCH FORTHRIGHTNESS WOULD CERTAINLY BE A CHANGE FROM THE CONTORTIONS AND EVASIONS THAT HAVE FOR SO LONG CHARACTERIZED MOST MEDIA DISCUSSIONS OF THE SUBJECT EVERY WEEK IN NEW YORK CITY ANOTHER BLACK OR HISPANIC CHILD IS CUT DOWN BY BULLETS MERELY FOR DARING TO VENTURE INTO THE STREET YOUNG BLACK MEN GUN ONE ANOTHER DOWN IN SCHOOL CORRIDORS AND YARDS YET SUCH PLAIN FACTS HAVE NOT PREVENTED SOCIOLOGISTS INCLUDING THE KIND WORKING AS REPORTERS FROM ASCRIBING THE RATE OF MORTALITY AMONG YOUNG BLACKS TO RACISM SO FAR AS THE MEDIA ARE CONCERNED IT WILL BE A WHILE OF COURSE A LONG WHILE BEFORE THE IRON INHIBITIONS GOVERNING RACIAL REFERENCE GIVE WAY WHO CAN FORGET THE LOCAL REPORTER BROADCASTING DURING THE LOS ANGELES RIOTS TRYING TO REPORT THE MAYHEM IN SOCIALLY ACCEPTABLE TERMS WHO ENDED UP ANNOUNCING WITHOUT THE SLIGHTEST INTENTIONAL IRONY THAT HE COULD SEE THERE WERE TWO BLACK GENTLEMEN SMASHING WINDOWS AND JUMPING ON CARS ON THE OTHER HAND THERE ARE NOW INCREASING INSTANCES OF LESSNERVOUS NEWS REPORTING JUST LAST MONDAY ABC'S DAY ONE WHICH SEEMS TO BE FINDING ITS VOICE AIRED A SEGMENT STRIKING FOR ITS PLAINSPOKEN EDGE ABOUT THE YOUNG WHO PREY ON FLORIDA TOURISTS THE REPORT DID MORE THAN DELIVER INSIDER DOPE ON HOW THE CRIMINALS DETECT A TOURIST TARGET THOUGH IT DID THAT EXCEEDINGLY WELL WITH THE HELP OF A REFORMED TOURIST HUNTER FAIRLY EARLY ON THE REPORTER MARK POTTER OBSERVED THAT ALL OF THE VICTIMS IN THE TOURIST MURDERS WERE WHITE AND ALL OF THE SUSPECTS WERE YOUNG BLACKS IN TIMES OTHER THAN OURS THIS ASSERTION OF PLAIN FACT MIGHT HAVE PASSED UNNOTICED BUT IN OUR TIME IT WAS POSITIVELY NOTEWORTHY GIVEN THE ENORMOUS INHIBITIONS THAT PREVAIL EVEN ABOUT MENTION OF THE OBVIOUS TO SAY NOTHING OF THE PROHIBITIONS AGAINST ANY DISCUSSION OF THE ROLE RACE MAY PLAY IN THE BRUTALITY OF THE CRIMES COMMITTED AGAINST THE TOURISTS AND ASIAN SHOPKEEPERS ALSO SOMEWHAT UNUSUAL THE DAY ONE SEGMENT NEGLECTED TO INCLUDE EXPLANATIONS BLAMING SOCIETY OR TO OFFER ANY OF THE OTHER STANDARD EXONERATIONS FOR CRIMINALITY THE ONLY PEOPLE OFFERING EXCUSES WERE SOME JUVENILE INMATES OF A DETENTION FACILITY ONE OF WHOM EXPLAINED IT'S OUR MONEY ANOTHER SEIZED BY THE DIPLOMATIC IMPULSES THAT TV CAMERAS TEND TO INSPIRE WANTED GERMAN VIEWERS TO UNDERSTAND GERMANS WEREN'T BEING SINGLED OUT EXCEPT AS TOURISTS A BLACK PAROLE OFFICER IMMEDIATELY APPEARED ON CAMERA TO POINT OUT THAT ALL THESE OFFENDERS JUST MAKE EXCUSES FOR WHAT THEY WANT TO DO WHICH IS HAVE FUN COMMITTING MAYHEM A BLACK PSYCHOLOGIST DESCRIBED THE SORT OF YOUNG INVOLVED IN THE TOURIST MURDERS CHILLINGLY AS SOULLESS HEARTLESS DANGEROUS VIOLENT YOUNG PEOPLE WHO WILL GO ON TO BECOME SOULLESS HEARTLESS DANGEROUS VIOLENT ADULTS NONE OF THIS IS TO SAY WE WON'T CONTINUE TO RECEIVE OUR REGULAR PORTIONS OF COMMENTARY DOCUMENTARIES AND REPORTAGE BLAMING EVERY SORT OF CRIMINAL ENORMITY ON POVERTY AND PREJUDICE STILL IT IS HARD TO AVOID THE FEELING THAT WITH THE GROWING PRESSURE OF VIOLENT CRIME A CORNER HAS BEEN TURNED AND THAT CERTAIN OLD RELIABLE SOLUTIONS THAT HAVE SERVED AS LIFELINES TO A GENERATION OF EDITORIAL WRITERS AND OTHER MEDIA SEERS ARE NO LONGER USABLE THAT HANDYFOREVERYOCCASION SOLUTION GUN CONTROL FOR INSTANCE STANDS REVEALED AS LUDICROUSLY BESIDE THE POINT OF THE AFFLICTION WE ARE TALKING ABOUT OF COURSE A CBS EVENING NEWS REPORT BY DIANA GONZALEZ THURSDAY NIGHT WAS STILL IN THERE PITCHING WITH A HEAVYHEARTED STORY ABOUT HOW SO MANY PEOPLE IN FLORIDA INCLUDING ELDERLY WOMEN HAVE TAKEN TO OWNING GUNS TO PROTECT THEMSELVES IT'S IRONIC MS GONZALEZ MARVELED THAT PEOPLE SHOULD BE TURNING FOR PROTECTION TO THE VERY THING THEY FEAR ONLY IN THE WORLD OF TV NEWS COULD THE WISH TO HAVE AN EQUALIZING DEFENSE AGAINST GUNWIELDING THUGS BE SEEN AS IRONIC IT'S WORTH NOTING THAT THERE WAS NO MENTION IN THE DAY ONE SEGMENT OF THE CRYING NEED FOR GUN CONTROL THE ABSENCE OF CANT MAY NOT BE EVERYTHING BUT IN OUR POLITICAL AND CULTURAL TIMES IT IS A MARK OF DISTINCTION SEE RELATED LETTER LETTERS TO THE EDITOR RACIST REALITIES OF RAMPANT CRIME WSJ NOV 5 1993 9310040010 YY93 MM11 9311050007 931014 THE OTHER TONI MORRISON BY HEATHER MAC DONALD THOUGH TONI MORRISON IS MOST WIDELY KNOWN AS A NOVELIST SHE HAS ALSO ENJOYED CONSIDERABLE SUCCESS AS A LITERARY AND SOCIAL CRITIC BECAUSE HER RECENT NOBEL PRIZE WILL CONFER EVEN GREATER AUTHORITY ON HER VIEWS OF AMERICAN LITERATURE AND SOCIETY IT IS WORTH EXAMINING THEM IN SOME DETAIL MS MORRISON SETS OUT HER INTERPRETATION OF AMERICAN CULTURE IN PLAYING IN THE DARK WHITENESS AND THE LITERARY IMAGINATION THREE LECTURES ORIGINALLY DELIVERED IN 1991 AT HARVARD AND IN HER INTRODUCTION TO RACEING JUSTICE ENGENDERING POWER A COLLECTION OF ESSAYS SHE EDITED ON THE ANITA HILLCLARENCE THOMAS HEARINGS BOTH BOOKS CAST DOUBT ON THE NOBEL COMMITTEE'S CLAIM THAT MS MORRISON WANTS TO LIBERATE LANGUAGE FROM THE FETTERS OF RACE TO THE CONTRARY HER ACADEMIC WRITINGS INSIST OBSESSIVELY ON RACIAL DIFFERENCES SHE POLARIZES LANGUAGE ITSELF INTO WHITE DISCOURSE AND SILENCED BLACK SPEECH IN MS MORRISON'S VIEW AMERICA IS RACIST TO ITS CORE THE VERY IDEALS UPON WHICH THE COUNTRY WAS FOUNDED LIBERTY EQUALITY AND THE RIGHTS OF MAN ARE SHE CLAIMS PERMANENTLY ALLIED WITH THE HIERARCHY OF RACE THAT THE MOST POWERFUL ARGUMENTS EVER DEVELOPED AGAINST SLAVERY AND SEGREGATION USED JUST THOSE ENLIGHTENMENT IDEALS APPARENTLY ESCAPES HER RECOGNITION IF THE CONCEPTUAL FOUNDATION OF AMERICA IS ROTTEN SO TOO IS ITS CONTEMPORARY REALITY MS MORRISON ACKNOWLEDGES NO IMPROVEMENT IN AMERICA'S MORAL CLIMATE SINCE THE DAYS OF SLAVERY RACISM IS AS HEALTHY TODAY AS IT WAS DURING THE ENLIGHTENMENT SHE SAYS BECAUSE IT IS NECESSARY TO THE AMERICAN IDENTITY WHITE AMERICANS SHE CLAIMS DEFINE THEMSELVES SOLELY BY CONTRAST TO A DEMONIZED AFRICANIST PRESENCE THEIR VERY ENJOYMENT OF FREEDOM DEPENDS SUPPOSEDLY ON THEIR KNOWLEDGE THAT BLACKS REMAIN BOUND AND UNFREE THOUGH THE CLAIM THAT BLACKS TODAY ARE BOUND AND UNFREE MIGHT SEEM TO REQUIRE SOME EXPLANATION SHE TYPICALLY DOES NOT PROVIDE ANY MS MORRISON SEES ALL OF AMERICAN LITERATURE AND HISTORY AS DRIVEN BY RACE SHE SPECIALIZES IN FINDING RACIAL ISSUES IN UNUSUAL PLACES IN NOVELS AND STORIES WITH NO BLACK CHARACTERS FOR INSTANCE SUCH AS HENRY JAMES'S MANNERED STORY THE BEAST IN THE JUNGLE THE ABSENCE OF BLACK CHARACTERS IS ALL THE STRONGER PROOF IN HER VIEW OF THEIR REPRESSED PRESENCE MS MORRISON IS NOT AVERSE TO REWRITING PLOTS TO FIT HER THESIS SHE ARGUES THAT THE SLAVE JIM CANNOT BE FREED AT THE END OF MARK TWAIN'S HUCKLEBERRY FINN BECAUSE HUCK'S FREEDOM DEPENDS ON JIM'S ENSLAVEMENT APPARENTLY THE FACT THAT JIM IS INDEED FREE AT THE END OF THE STORY TO NO NOTICEABLE LOSS OF HUCK'S AUTONOMY IS IRRELEVANT MS MORRISON'S GREATEST INTERPRETIVE CHALLENGE TO DATE HOWEVER WAS PRESENTED NOT BY LITERATURE BUT BY DRAMA OF THE CLARENCE THOMASANITA HILL HEARINGS HER DILEMMA WAS THIS ON THE ONE HAND JUDGE THOMAS AS A BLACK WAS A VICTIM OF THE PATRONIZING CODDLING UNDEMANDING RESCUING COMPLICITOUS WHITE RACISTS WHO NOMINATED HIM ON THE OTHER HAND AS A REPUBLICAN AND ALLEGED SEXUAL HARASSER HE WAS HIMSELF AN OPPRESSOR FACED WITH THESE COMPLEX STRANDS OF VICTIMIZATION MS MORRISON TURNS ON THE SENATE JUDICIARY COMMITTEE SHE CONDEMNS IT FOR TRYING TO DETERMINE JUDGE THOMAS'S GUILT OR INNOCENCE AS THOUGH INNOCENCE RATHER THAN MALFEASANCE OR ETHICAL CHARACTER OR FITNESS TO SERVE WAS THE CHARGE AGAINST WHICH THEY STRUGGLED TO JUDGE THE JUDGE LEAVING ASIDE THE QUESTION OF WHETHER INNOCENCE IS A CHARGE IT IS UNCLEAR HOW THE COMMITTEE COULD HAVE EVALUATED JUDGE THOMAS'S MALFEASANCE OR FITNESS TO SERVE WITHOUT DETERMINING THE VERACITY OF THE ALLEGATIONS AGAINST HIM UNLESS OF COURSE THE CHARGE OF HARASSMENT REQUIRES NO PROOF MS MORRISON CLAIMS WITHOUT EVIDENCE THAT HAD JUDGE THOMAS BEEN WHITE THE COMMITTEE WOULD HAVE DUMPED HIM IMMEDIATELY AFTER ANITA HILL'S INITIAL ACCUSATION IT WAS SUPPOSEDLY ONLY THE VOYEURISTIC DESIRE OF WHITES FOR BLACK BODIES THAT GAVE RISE TO THE HEARINGS HER GRAMMAR BUCKLES UNDER THE STRAIN OF HER ANALYSIS RATHER THAN CLAIMING HOW CERTAIN FEMINIST INTERESTS FORCED THE CONFRONTATION RATHER THAN EDITORIALIZING ABOUT HOW RELUCTANT THE COMMITTEE MEMBERS WERE TO INVESTIGATE ANITA HILL'S CHARGES PUBLICLY AND HOW HUMILIATED THEY WERE IN DOING SO IT SEEMS BLAZINGLY CLEAR THAT WITH THIS UNPRECEDENTED OPPORTUNITY TO HOVER OVER AND TO CLUCK AT TO MEDITATE AND PONDER THE LIMITS AND EXCESSES OF BLACK BODIES NO OTHER STRATEGIES WERE GOING TO BE ENTERTAINED MS MORRISON'S SKILLS IN ROOTING OUT RACISM IN LITERARY TEXTS SERVE HER WELL IN HER ANALYSIS OF THE MEDIA COVERAGE OF THE THOMAS NOMINATION AN INITIAL PROFILE OF JUDGE THOMAS MENTIONED THAT HE LIFTED WEIGHTS THIS SAYS MS MORRISON IS AN EXAMPLE OF WHITE DISCOURSE IN WHICH REFERENCE TO A BLACK PERSON'S BODY IS DE RIGUEUR IT WAS ALSO REPORTED THAT PRESIDENT BUSH INVITED JUDGE THOMAS INTO HIS BEDROOM FOR THE FINAL INTERVIEW SALACIOUS CRIES MS MORRISON AN EXAMPLE OF THE MEDIA GLANCING AND STROKING BLACK FLESH WORST OF ALL WAS JUDGE THOMAS'S REPLY TO THE QUESTION WHETHER HE EXPECTED TO PLAY GOLF WITH THE PRESIDENT NO HE SAID THE BALL'S TOO SMALL MS MORRISON SEES THIS NEWS ITEM AS A NOT SO VEILED REFERENCE TO THE NOMINEE'S BODY IT APPARENTLY DOESN'T MATTER THAT IT WAS JUDGE THOMAS WHO DELIVERED THE UNORIGINAL LINE HE MIGHT HAVE SAID IT BUT THE PRESS IN MS MORRISON'S VIEW WAS RACIST TO REPORT IT NO ONE WOULD DENY THAT RACE RELATIONS INFORM MUCH AMERICAN HISTORY AND SOME OF ITS BEST LITERATURE BUT TO CLAIM AS MS MORRISON DOES THAT RACE IS THE PRIMARY REFERENT OF ALL AMERICAN CULTURE IS A RECKLESS EXAGGERATION WHETHER THE CLAIM WILL REMAIN AN EXAGGERATION HOWEVER IS AN OPEN QUESTION MS MORRISON IS WORKING BUSILY TO DISMANTLE THE IDEAL OF COLORBLINDNESS IN ITS PLACE SHE HAS ERECTED AN INSISTENT AWARENESS OF RACE AND GENDER AND WHATEVER ELSE MAY BE THE IDENTITY DEFINING TRAIT DU JOUR AS THE DEFINING FEATURE OF THE SELF THAT THIS NARROWING OF THE HUMAN SPIRIT SHOULD BE THE GOAL OF SO MANY CONTEMPORARY ACADEMICS AND WRITERS IS ONE OF THE MORE MYSTIFYING FEATURES OF OUR TIME THAT ONE OF ITS EXPONENTS SHOULD BE AWARDED A NOBEL PRIZE BODES POORLY FOR RACIAL HARMONY MS MAC DONALD IS A NEW YORK WRITER SEE RELATED LETTERS LETTERS TO THE EDITOR THE REAL TONI MORRISON WSJ NOV 5 1993 9310140078 YY93 MM11 9311050118 930921 IN DEFENSE OF THE SERBIANS FOLLOWING IS THE TEXT OF AN OPEN LETTER TO PRESIDENT CLINTON WRITTEN BY EIGHT YUGOSLAVAMERICAN SCHOLARS NOW THAT AN AGREEMENT ON BOSNIA SEEMS SO CLOSE AT HAND WE HOPE THAT THIS TIME THE OPPORTUNITY FOR AN ACCORD WILL NOT BE MISSED TWICE BEFORE PROPOSED WORKABLE CANTONAL DIVISIONS ACCEPTABLE TO THE WARRING PARTIES WERE TORPEDOED BY OUTSIDE INTERVENTION BASED ON THE CONTENTION THAT THE CONFLICT IN THAT AGONIZED LAND IS A WAR OF AGGRESSION AND THAT THE HURRIEDLY PROCLAIMED NEW STATE SHOULD BE PROTECTED BY THE ARMED MIGHT OF WESTERN NATIONS THE SAME THESIS WAS ADVANCED ON THIS PAGE IN AN OPEN LETTER TO THE PRESIDENT BY AN INTERNATIONAL GROUP OF CONCERNED PUBLIC FIGURES HEADED BY THE FORMER BRITISH PRIME MINISTER MARGARET THATCHER WHAT THE WEST MUST DO IN BOSNIA SEPT 2 THIS CONTENTION HOWEVER IS IN ERROR BECAUSE THE BOSNIAN TURMOIL REPRESENTS A STRUGGLE FOR NATIONAL SELFDETERMINATION OF DISTINCT NATIONS IT IS A CIVIL WAR PURE AND SIMPLE ATTEMPTS TO DICTATE ITS OUTCOME FROM THE OUTSIDE CAN ONLY PROLONG AND EXACERBATE THE AGONY A BRIEF REVIEW OF THE RECENT HISTORY OF THE AREA CAN VERY READILY ESTABLISH THESE FACTS WHEN CERTAIN ETHNIC GROUPS WITHIN THE SOVEREIGN NATION OF YUGOSLAVIA A COFOUNDING MEMBER OF THE LEAGUE OF NATIONS AND THE UNITED NATIONS DECIDED TO OPT OUT OF THE COMMON REPUBLIC THEY DID SO EMPLOYING IN PURSUIT OF THEIR GOALS EVEN VIOLENT MEANS AGAINST THE LEGITIMATE AUTHORITIES AT SOME POINT FOR EXAMPLE THE LOCAL SLOVENIAN AUTHORITIES ENGAGED THE FORMER YUGOSLAV ARMY IN MULTIPLE ARMED COMBATS AT THE TIME SUCH CONFLICTS IN PURSUIT OF ETHNIC SEPARATION WERE NOT CONSIDERED AGGRESSION AGAINST A UN MEMBER STATE BY THE INTERNATIONAL COMMUNITY AND THE SLOVENIANS ULTIMATELY SUCCEEDED IN ESTABLISHING A SEPARATE NATIONAL ENTITY THE CROAT AND BOSNIAN AUTHORITIES FOLLOWED SUIT HAVING NOTICED THESE EVENTS THE SIZABLE SERBIAN POPULATION IN BOSNIA ASSUMED THAT WHAT IS GOOD FOR THE GOOSE SHOULD BE GOOD FOR THE GANDER IF THE SLOVENES AND CROATS HAD IN THE NAME OF THEIR NATIONAL SELFDETERMINATION A RIGHT TO OPT OUT OF YUGOSLAVIA AND THUS BREAK UP A SOVEREIGN STATE OF LONG HISTORICAL STANDING THEN THE SERBS IN BOSNIA MUST HAVE THE SAME RIGHT TO OPT OUT OF THE JUSTDECLARED STATE OF BOSNIA THEY WANTED TO FORM PRECISELY AS THE SLOVENIANS AND CROATS HAD THEIR OWN DISTINCT AND SEPARATE TERRITORIAL ENTITY EVEN WITHOUT SUCH COMPARISONS THE SERBS AS WELL AS THE BOSNIAN CROATS HAVE AS A MATTER OF PRINCIPLE THE RIGHTS TO MAINTAIN THEIR ETHNIC IDENTITY AND TO PRACTICE THEIR OWN RELIGION THE IMPLEMENTATION OF THESE RIGHTS SEEMED OF PARTICULAR IMPORTANCE IN THE SELFPROCLAIMED AND INITIALLY ILLDEFINED MUSLIMDOMINATED STATE OF BOSNIA THIS WAS RESISTED BY THE BOSNIAN AUTHORITIES AND THE PRESSING NEED FOR ETHNIC AND RELIGIOUS SELFDETERMINATION ASSOCIATED WITH TERRITORIAL INTEGRITY HAS SUBSEQUENTLY LED TO THE CURRENT THREESIDED CIVIL WAR IN BOSNIA IT IS WORTH NOTING THAT THE CURRENTLY PROPOSED UN SOLUTION ENVISAGING THREE SEPARATE PROVINCES IN A LOOSELY BOUND BOSNIAN STATE IS SIMILAR TO THE SUCCESSFUL MODEL OF COEXISTENCE OF THE DIFFERENT NATIONALITIES AND GROUPS FOUND IN CANADA BELGIUM SWITZERLAND AND ELSEWHERE ON THE OTHER HAND THERE IS NOT A SINGLE INSTANCE NOW OR IN THE PAST WHERE A STATE DOMINATED BY THE ETHNIC OR RELIGIOUS PREFERENCE OF ONE GROUP HAS NOT RESULTED IN THE BLATANT OPPRESSION OF OTHERS IN ADDITION SERBS HAD GOOD HISTORICAL REASONS FOR THEIR COURSE OF ACTION DURING WORLD WAR II THEY WERE SUBJECTED TO SYSTEMATIC EXTERMINATION WITHIN THE NAZIPROMOTED PUPPET STATE OF CROATIA BY THE BOSNIAN MUSLIM ARMED UNITS AND THE CROATIAN FASCIST USTASHI THE GERMANS FORMED OUT OF BOSNIAN MUSLIMS TWO WAFFEN SS DIVISIONS THESE TROOPS FIRST MASSACRED INDIGENOUS SERBIAN POPULATIONS IN CROATIA BOSNIA AND OCCUPIED SERBIA AND LATER JOINED THE GERMAN ARMY IN THE BATTLE OF STALINGRAD CONSEQUENTLY SERBS REFUSED TO BECOME ONCE AGAIN SUBJECTED TO DREADED ALIEN RULE THEY DID NOT WANT TO SEE REPEATED UNDER ANY NAME WHAT THEY VIVIDLY REMEMBERED AS 500 YEARS OF SLAVERY UNDER MUSLIM OTTOMAN RULE THIS WAS IN SPRING 1992 THE HISTORICALLY PERCEIVED REALITY FOR THE SERBIAN POPULATION IN BOSNIA IT IMPELLED THEM TO SEEK THE ESTABLISHMENT OF A DISTINCT SERBIAN NATIONAL HOME AND EVOLVED INTO A PAINFUL PROCESS WITHIN THE POLITICAL POWER VACUUM LEFT IN THE WAKE OF THE COLLAPSE OF COMMUNISM AN EARLY ACCORD CRAFTED AND SIGNED IN LISBON IN MARCH 1992 BY THE LOCAL BOSNIAN CROATS MUSLIMS AND SERBS WAS SABOTAGED BY THE US STATE DEPARTMENT WHICH HASTILY BESTOWED RECOGNITION ON A MUSLIMDOMINATED BOSNIA THE MUSLIM HEAD OF STATE ALIJA IZETBEGOVIC THEN RESCINDED HIS LISBON SIGNATURE WHEREUPON BOSNIAN SERBS DECIDED TO OPT OUT OF SUCH A MUSLIMDOMINATED STATE AND THE CIVIL CONFLICT WAS ON TRANSGRESSIONS AND ATROCITIES WERE COMMITTED BY ALL THE WARRING FACTIONS ALTHOUGH THE REPORTED NUMBER OF VICTIMS MAY BE EXAGGERATED SUCH ACTS SHOULD BE CONDEMNED IN NO UNCERTAIN TERMS STILL THESE ACTS DURING THE CURRENT LAWLESSNESS OF A CIVIL WAR IN BOSNIA ARE NO DIFFERENT FROM WHAT HAPPENED AT OTHER TIMES IN MY LAI BATAAN JASENOVAC OR BEIRUT WHILE THOSE RESPONSIBLE FOR ANY CRIMINAL MISDEED SHOULD BE APPREHENDED AND TRIED WHENEVER POSSIBLE THE BLAME SHOULD NOT BE EXTENDED TO ENTIRE NATIONS IN PARTICULAR NOT SO IN THE CASE OF BOSNIA BECAUSE THE QUEST FOR SELFDETERMINATION IS A VALID ONE AND THE SERBS THERE ARE NO MORE AGGRESSORS THAN THE LOCAL MUSLIMS OR FOR THAT MATTER THE CROATS OUR FINDING MARGARET THATCHER'S NAME PROMINENTLY AMONG THE SIGNATORIES OF THE OPEN LETTER THE JOURNAL PRINTED HAS CAUSED US AN ADDITIONAL DEGREE OF SORROW FOR HER BRUTALLY TO DENOUNCE TMOST FAITHFUL ALLY OF THE BRITISH IN TIMES OF MORTAL PERIL DURING WORLD WAR II IS AS INCOMPREHENSIBLE AS IT IS PAINFUL LADY THATCHER MUST HAVE HEARD WINSTON CHURCHILL ON MARCH 27 1941 TELL HIS NATION THAT THE YUGOSLAVS UNDER SERBIAN LEADERSHIP HAD OVERTHROWN THE GOVERNMENT THAT HAD SIGNED AN AGREEMENT WITH NAZI GERMANY AND THAT THE YUGOSLAV NATION FOUND ITS SOUL CHURCHILL NOTED IN HIS MEMOIRS THAT HITLER WAS SO ENRAGED BY THE SERBS ALIGNING YUGOSLAVIA WITH THE VALIANT STRUGGLE OF THE BRITISH THAT HE IMMEDIATELY ISSUED ORDERS TO DESTROY YUGOSLAVIA MILITARILY AND AS A NATIONAL UNITY CHURCHILL WROTE ON THE MORNING OF APRIL 6 GERMAN BOMBERS APPEARED OVER BELGRADE FLYING IN RELAYS FROM OCCUPIED AIRFIELDS IN RUMANIA THEY DELIVERED A METHODICAL ATTACK LASTING THREE DAYS UPON THE YUGOSLAV CAPITAL FROM ROOFTOP HEIGHT WITHOUT FEAR OF RESISTANCE THEY BLASTED THE CITY WITHOUT MERCY THIS WAS CALLED OPERATION PUNISHMENT' WHEN SILENCE CAME AT LAST ON APRIL 8 OVER SEVENTEEN THOUSAND CITIZENS OF BELGRADE LAY DEAD IN THE STREETS OR UNDER THE DEBRIS BELGRADE ENDURED ANOTHER SERIES OF BOMBING RAIDS BETWEEN EASTER 1944 AND THE LIBERATION OF THE CITY IN OCTOBER THESE WERE CARPETBOMBINGS OF SUPPOSED GERMAN MILITARY TARGETS BY THE US AIR FORCE THE BOMBERS HOWEVER MORE OFTEN THAN NOT MISSED THEIR ASSIGNED TARGETS AND THE DAMAGE TO THE CITY WAS ENORMOUS THE NUMBER OF SERBIAN CIVILIAN CASUALTIES FROM SUCH FRIENDLY FIRE WAS IN THE THOUSANDS STRANGELY ENOUGH HOWEVER THE ENEMY OF OUR ALLIES IN ZAGREB LJUBLJANA SKOPJE OR FOR THAT MATTER IN SARAJEVO HAD NO NEED TO BE WORRIED ABOUT BEING BOMBED NOW THAT LADY THATCHER ADVOCATES YET A THIRD ROUND OF AIRBORNE DESTRUCTION OF SERBIA WE ARE AT A LOSS TO FATHOM HER MOTIVES THE SURGICAL PRECISION BOMBING TALE NOTWITHSTANDING IN SUMMARY SERBS IN BOSNIA AND BOSNIAN CROATS ALIKE ARE NOT ASKING WITH RESPECT TO BOSNIA FOR ANYTHING MORE THAN WHAT SLOVENES CROATS AND MACEDONIANS ASKED FOR EARLIER AND HAVE BEEN GRANTED BY THE INTERNATIONAL COMMUNITY AS IT HAPPENS THIS HAS EMBROILED BOSNIA IN A FULLSCALE CIVIL WAR IN WHICH BY THE NATURE OF SUCH CONFLICTS INDIVIDUALS AND GROUPS OF INDIVIDUALS DO COMMIT ACTS OF VIOLENCE THAT VIOLATE NORMS OF CIVILIZED BEHAVIOR AS A RULE PARTIAL OUTSIDE SUPPORT ONLY PROLONGS THE PAIN AND SUFFERING SUCH A SITUATION IS TRULY TRAGIC AND SHOULD INVITE EFFORTS TOWARD MEDIATION AND REMEDIATION BY PERSONS OF GOOD WILL INSTEAD HOWEVER WE SEE AN INFLAMMATORY OPEN LETTER WHOSE TIMING AND CONTENT COULD NOT HAVE BEEN MORE UNFORTUNATE AND MISDIRECTED IT APPEARED DURING THE FINAL HOURS OF THE GENEVA NEGOTIATIONS INSTEAD OF LOOKING FOR WAYS IN WHICH TO IRON OUT THE MINOR PROCEDURAL PROBLEMS THAT WERE HOLDING UP A PEACE ACCORD THE LETTER PROPOSED MOST UNDIPLOMATICALLY THAT ONE PARTY BE GIVEN ARMS SO THAT IT CAN ANNIHILATE THE OTHERS WE ARE DEEPLY CHAGRINED TO WITNESS THIS ONESIDED AND PARTISAN ANTISERBIAN OUTBURST OF MOST BELLICOSE RHETORIC THIS IS POURING THE FUEL OF HATE ON A FIERY INFERNO WHEN THE GREATEST NEED IS FOR AN UNDERSTANDING AND COMPASSIONATE BRIGADE OF FIREFIGHTERS SEE RELATED ARTICLE THE CASE AGAINST SERBIA AGAIN WSJ OCT 12 1993 SEE RELATED LETTER LETTERS TO THE EDITOR SERBIAN OUTRAGES AGAINST ALBANIANS WSJ NOV 5 1993 9309210026 YY93 MM10 9310120067 YY93 MM11 9311050116 930921 POLITICS & POLICY ICKES CLINTON INSIDER AND PUERTO RICO ADVOCATE SHOWS NOT ALL WHO LOBBY MUST WAIT IN THE HALL BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN NEW YORK LAWYER HAROLD ICKES VISITED THE CAPITOL IN EARLY JUNE A SENATOR'S AIDE ASKED HIM QUIZZICALLY ARE YOU HERE ON BEHALF OF THE WHITE HOUSE OR PUERTO RICO THE CONFUSION WAS UNDERSTANDABLE MR ICKES THE SON OF FRANKLIN D ROOSEVELT'S INTERIOR SECRETARY IS WIDELY KNOWN AS AN INFLUENTIAL FRIEND OF PRESIDENT CLINTON HAS OFTEN BEEN MENTIONED FOR A TOP WHITE HOUSE JOB AND EVEN HAS THE KIND OF SECRET SERVICEISSUED PASS THAT IS ISSUED TO PRESIDENTIAL AIDES ALLOWING HIM TO ROAM THE WHITE HOUSE CORRIDORS AT WILL BUT MR ICKES WAS HARDLY REPRESENTING THE PRESIDENT THAT DAY ON CAPITOL HILL RATHER HE WAS LOBBYING FOR PUERTO RICO AND WORKING TO DEFEAT ONE OF MR CLINTON'S MOST IMPORTANT TAX PROPOSALS THE SEVERE CURTAILMENT OF A GENEROUS SUBSIDY TO US MANUFACTURERS ESPECIALLY PHARMACEUTICAL MAKERS WITH OPERATIONS IN THE ISLAND COMMONWEALTH IN THE END THE PRESIDENT RELENTED AND MR ICKES'S SIDE WON WHEN MOST OF THE TAX BREAK WAS PRESERVED DURING HIS ELECTION CAMPAIGN MR CLINTON INSISTED THAT HE WOULDN'T TOLERATE SPECIAL ACCESS FOR NARROW INTERESTS AND PROMISED TO TAKE AWAY POWER FROM THE ENTRENCHED BUREAUCRACIES AND SPECIAL INTERESTS THAT DOMINATE WASHINGTON AS MR ICKES'S EXAMPLE SHOWS HOWEVER NOT ONLY HAVE SPECIAL INTERESTS CONTINUED TO FLOURISH BUT PEOPLE CLOSE TO THE PRESIDENT ARE PARTICIPATING IN THE BAZAAR THE PUERTO RICANS PLACED THE 54YEAROLD MR ICKES ON RETAINER STARTING IN MIDAPRIL AT A FEE THAT LOBBYISTS PUT AT 10000 A MONTH MR ICKES WON'T DISCUSS HOW MUCH HE IS BEING PAID HE BEGAN MEETING WITH PROMINENT LAWMAKERS AND THEIR STAFFS HE ALSO ATTENDED NUMEROUS STRATEGY SESSIONS WITH LOBBYISTS AND PUERTO RICAN OFFICIALS HELPING TO PLOT HOW TO BEAT THE PRESIDENT'S PROPOSAL PARTICIPANTS SAY HE GAVE ADVICE ON A VARIETY OF MATTERS INCLUDING HOW BEST TO DEAL WITH THE CLINTON ADMINISTRATION MR ICKES'S ROLES AS WHITE HOUSE ADVISER AND PUERTO RICO LOBBYIST SOMETIMES BLURRED THE CHIEF OF STAFF OF THE SENATE FINANCE COMMITTEE LAWRENCE O'DONNELL TALKED TO MR ICKES AS IF HE WERE THE PUERTO RICANS' CONDUIT TO THE WHITE HOUSE AND EVEN ADMONISHED MR ICKES FOR FAILING TO LOBBY THE WHITE HOUSE HARDER IT STRUCK ME AS SOMETHING OF A WASTE OF TIME BEING IN MY OFFICE WHEN ALL THE RESISTANCE WAS COMING FROM THE ADMINISTRATION MR O'DONNELL SAYS I MADE IT CLEAR THAT ANYONE WHO HAS ACCESS TO THE WHITE HOUSE ON THIS SHOULD BE LOBBYING THE WHITE HOUSE MR ICKES WHOSE PRACTICE IS BASED IN MINEOLA NY CONTENDS HE WASN'T LOBBYING THE WHITE HOUSE AT ALL AT THE TIME IN FACT AFTER SERVING AS THE CHIEF OPERATING OFFICER OF THE CLINTON TRANSITION IN LITTLE ROCK ARK HE HAD AGREED NOT TO LOBBY ANY GOVERNMENT AGENCY FOR SIX MONTHS AFTER THE START OF THE NEW ADMINISTRATION HE INSISTS THAT THE ADVICE HE GAVE TO LOBBYISTS DIDN'T VIOLATE THAT AGREEMENT AND ADDS THAT I CERTAINLY HAD NO INFORMATION AND DID NOT ATTEMPT TO OBTAIN ANY INFORMATION ABOUT WHERE DIFFERENT PEOPLE IN THE WHITE HOUSE STOOD ON THE ISSUE BUT HE DID MEET WITH SEVERAL DEMOCRATIC LAWMAKERS WHOSE INFLUENCE PROVED TO BE PIVOTAL THESE INCLUDED SUCH TAX WRITERS AS HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI OF ILLINOIS NEW JERSEY SEN BILL BRADLEY NEW YORK REP CHARLES RANGEL AND CONNECTICUT REP BARBARA KENNELLY MR ICKES ALSO MET WITH TWO FRESHMAN LAWMAKERS OF PUERTO RICAN DESCENT REPS NYDIA VELAZQUEZ OF NEW YORK AND LUIS GUTIERREZ OF ILLINOIS WHOSE PERSONAL PLEAS TO THE PRESIDENT ON JUNE 10 WERE SAID BY CLINTON AIDES TO HAVE BEEN CRITICAL TO HIS DECISION TO BEND ON THE ISSUE DESPITE THOSE MEETINGS MR ICKES INSISTS THAT HE DOESN'T HAVE TO REGISTER AS A LOBBYIST BECAUSE HE IS SERVING AS A STRATEGIST AND ADVISER TO THE PUERTO RICANS IN DEALING WITH THE DEMOCRATIC PARTY THE CURRENT LOBBYINGREGISTRATION LAWS ARE SO LOOSELY WORDED THAT HE APPEARS TO BE CORRECT BUT HIS WORK PRODUCED RESULTS NONETHELESS THE ORIGINAL CLINTON PROPOSAL WOULD HAVE CUT THE PUERTO RICAN TAX SUBSIDY BY 68 BILLION OVER FIVE YEARS THE FINAL TAX CHANGE REDUCED THE BREAK BY 37 BILLION OVER THE PERIOD MR ICKES IS CONTINUING TO REPRESENT PUERTO RICAN INTERESTS AND HAS BEEN MEETING WITH WHITE HOUSE OFFICIALS ON THEIR BEHALF SINCE THE SIXMONTH BAN ON CONTACTS BY FORMER TRANSITION STAFFERS LAPSED IN JULY HE ARRANGED A MEETING FOR HIMSELF AND THE GOVERNOR OF PUERTO RICO WITH SENIOR WHITE HOUSE AIDE MARCIA HALE AT THE NATIONAL GOVERNORS ASSOCIATION MEETING IN TULSA OKLA LAST MONTH HE ALSO ARRANGED AND STAYED FOR THE START OF A MEETING BETWEEN THE GOVERNOR AND HILLARY RODHAM CLINTON AT THE SAME TULSA EVENT MEANWHILE HE CONTINUES TO USE HIS WHITE HOUSE PASS TO COME AND GO AT 1600 PENNSYLVANIA AVE MANY PEOPLE GET ACCESS TO THE WHITE HOUSE I AM ONE OF THOSE MR ICKES SAYS I SEE NOTHING IMPROPER ABOUT IT AND CLEARLY HE IS STILL WELCOME THERE HIS WORK WITH THE GOVERNMENT OF PUERTO RICO INVOLVED A WHOLE WIDE RANGE OF ISSUES THE TAX ISSUE IS JUST ONE ASPECT OF IT SAYS WHITE HOUSE COMMUNICATIONS DIRECTOR MARK GEARAN HAROLD IS A VALUED FRIEND OF THE ADMINISTRATION SEE RELATED LETTER LETTERS TO THE EDITOR WE'RE YOUR BROTHERS NOT AN INTEREST GROUP WSJ NOV 5 1993 9309210087 YY93 MM11 9311040159 931104 WHO'S NEWS DIED ROBERT HELLENDALE 75 FORMER CHAIRMAN AND PRESIDENT OF GREAT NORTHERN NEKOOSA CORP SATURDAY IN GREENWICH CONN AFTER A LONG ILLNESS 9311040158 931104 WHO'S NEWS UNITRIN INC UNITRIN INC CHICAGO JAMES E ANNABLE A SENIOR VICE PRESIDENT AND CHIEF ECONOMIST AT FIRST CHICAGO CORP AND REUBEN L HEDLUND A FOUNDING PARTNER OF THE LAW FIRM OF HEDLUND & HANLEY WERE ELECTED DIRECTORS OF THIS INSURANCE CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN 9311040157 931104 WHO'S NEWS MADISON GROUP ASSOCIATES INC MADISON GROUP ASSOCIATES INC FORT LAUDERDALE FLA WAYNE L WICKS FORMERLY DIRECTOR OF OPERATIONS AT CBS INC WAS NAMED EXECUTIVE VICE PRESIDENT OF OPERATIONS A NEW POST AT THIS TELECOMMUNICATIONS MEDIA AND SPORTS PRODUCTION CONCERN 9311040156 931104 WHO'S NEWS DATAPOINT CORP DATAPOINT CORP SAN ANTONIO DORIS D BENCSIK 62 YEARS OLD WAS NAMED PRESIDENT OF THIS COMPUTER NETWORKING CONCERN FILLING A VACANCY MRS BENCSIK WAS EXECUTIVE VICE PRESIDENT OF DATAPOINT AND REMAINS CHIEF OPERATING OFFICER 9311040155 931104 WHO'S NEWS HERCULES INC HERCULES INC WILMINGTON DEL RICHARD M FAIRBANKS III SENIOR COUNSEL AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES AS WELL AS AT THE LAW FIRM OF PAUL HASTINGS JANOFSKY & WALKER IN WASHINGTON WAS ELECTED A DIRECTOR OF THIS AEROSPACE AND CHEMICAL CONCERN INCREASING BOARD MEMBERSHIP TO 11 9311040154 931104 WHO'S NEWS NORTHWESTERN PUBLIC SERVICE CO NORTHWESTERN PUBLIC SERVICE CO HURON SD MERLE D LEWIS 45 YEARS OLD EXECUTIVE VICE PRESIDENT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE UTILITY CONCERN EFFECTIVE JAN 31 HE SUCCEEDS ROBERT A WILKENS 64 WHO WAS NAMED CHAIRMAN SUCCEEDING ALBERT D SCHMIDT 67 WHO IS RETIRING 9311040153 931104 FINANCING BUSINESS TEJAS GAS CORP TEJAS GAS CORP HOUSTON SAID IT IS OFFERING 13 MILLION 5 1/4 CONVERTIBLE PREFERRED SHARES AT 50 A SHARE EACH SHARE IS CONVERTIBLE INTO 0714 SHARE OF TEJAS COMMON THE SHARES ARE REDEEMABLE BY TEJAS AFTER THREE YEARS IN ADDITION PENN CENTRAL CORP IS MAKING A SECONDARY OFFERING OF ALL ITS 1982646 SHARES OF TEJAS COMMON AT 56 EACH TEJAS A GAS PIPELINE COMPANY SAID IT WILL USE ITS PROCEEDS TO REDUCE DEBT PENN CENTRAL CINCINNATI SAID IT WILL TAKE A PRETAX GAIN OF 80 MILLION FROM ITS SALE PENN CENTRAL IS A SPECIALTY PROPERTY AND CASUALTY INSURER THE LEAD UNDERWRITER FOR BOTH TRANSACTIONS IS MERRILL LYNCH & CO 9311040152 931104 TECHNOLOGY & HEALTH TEABAG TECHNOLOGY DUNKS ALTERED CELLS INTO HUMAN BEINGS EXPERIMENTAL IMPLANT THERAPY FOR HEMOPHILIA IS DESIGNED TO PRODUCE CLOTTING AGENTS BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL DEERFIELD ILL BAXTER INTERNATIONAL INC AND SOMATIX THERAPY CORP FORMED A JOINT VENTURE TO DEVELOP A GENETHERAPY APPROACH TO TREATING HEMOPHILIA IN THE STILL HIGHLY EXPERIMENTAL APPROACH GENETICALLY ALTERED CELLS PRODUCED BY SOMATIX WOULD BE USED TO PRODUCE THE CRUCIAL BLOODCLOTTING FACTORS THAT HEMOPHILIACS LACK BAXTER BRINGS TO THE VENTURE A POLYMER MEMBRANE BAG IN WHICH THE ALTERED CELLS WOULD BE PLACED THE FOURCENTIMETERLONG MEMBRANE WHICH WOULD BE IMPLANTED IN PATIENTS WOULD ACT AS A KIND OF SEMIPERMEABLE TEA BAG TO HOLD THE CELLS THE BAXTER MEMBRANE IS DESIGNED TO PREVENT THE REJECTION REACTION THAT TYPICALLY OCCURS WHEN FOREIGN OBJECTS ARE INTRODUCED INTO THE HUMAN BODY FACTOR VIII AND FACTOR IX ARE THE BLOODCLOTTING INGREDIENTS PEOPLE WITH HEMOPHILIA LACK CURRENTLY REGULAR INJECTIONS OF THESE BLOOD FACTORS ARE THE ONLY WAY TO FIGHT THE ILLNESS SOMATIX BASED IN ALAMEDA CALIF IS ONE OF A SMALL HANDFUL OF COMPANIES SEEKING TO FIND A GENETHERAPY TREATMENT THAT WOULD BE A LONGERTERM REMEDY VIRTUALLY EVERYBODY IN GENE THERAPY IS EXPLORING TREATMENT OF HEMOPHILIA SAID GREGORY B BROWN AN ANALYST WITH VECTOR SECURITIES INTERNATIONAL INC IT'S FAR TOO EARLY TO CALL THAT RACE JEFFREY LEIDEN A UNIVERSITY OF CHICAGO PROFESSOR OF MEDICINE ENGAGED IN GENETICTHERAPY RESEARCH SAYS ANOTHER DRAWBACK OF CURRENT HEMOPHILIA TREATMENT IS THAT THERE ISN'T ENOUGH MATERIAL TO MAKE FACTOR VIII AND FACTOR IX USED IN REGULAR INJECTIONS IT'S ALSO INCONVENIENT AND EXPENSIVE HE SAYS THAT'S BEEN THE DRIVING FORCE BEHIND THE GENETHERAPY APPROACH THERE ARE AN ESTIMATED 20000 AMERICANS WITH HEMOPHILIA A AND ABOUT 5000 US SUFFERERS OF HEMOPHILIA B IN EITHER CASE THE LACK OF CLOTTING ABILITY CAN LEAD TO UNCONTROLLED BLEEDING BAXTER PREVIOUSLY HAD FORMED A JOINT VENTURE WITH NEOCRIN CO IRVINE CALIF FOR THE TREATMENT OF DIABETES IN THAT EFFORT STILL AT THE ANIMALTESTING STAGE PANCREATIC TISSUE FROM PIGS IS PLACED IN THE POLYMER BAG IN RESEARCH ANIMALS AS A METHOD OF TREATING THE ILLNESS WILLIAM JOHNSTON GENERAL MANAGER OF BAXTER'S GENETHERAPY GROUP SAID THE POLYMER BAG WITHOUT ANY CELL TISSUE INSIDE HAS BEEN TESTED IN HEALTHY PEOPLE IN EUROPE WITHOUT CAUSING ANY REJECTION THOSE WHO VOLUNTEERED FOR THOSE TESTS WERE NURSES WHO TREAT DIABETICS 9311040151 931104 ECKERD TO BUY DRUGSTORE CHAIN CLEARWATER FLA ECKERD CORP SAID IT AGREED TO BUY CROWN DRUGS A 19UNIT DRUGSTORE CHAIN IN WINSTONSALEM NC TERMS WEREN'T DISCLOSED ECKERD IS AN OPERATOR OF DRUG PHOTO AND OPTICAL STORES 9311040150 931104 INTERNATIONAL VIRGIN ATLANTIC MAY FORGE LINK WITH A US AIRLINE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON VIRGIN ATLANTIC AIRWAYS PLANS TO JOIN THE GROWING NUMBER OF AIRLINES FORMING ALLIANCES AND MAY SOON ANNOUNCE A US PARTNERSHIP DEAL A MAJOR AMERICAN CARRIER APPROACHED US A COUPLE OF MONTHS AGO CHAIRMAN RICHARD BRANSON SAID ADDING THAT TALKS HAVE INTENSIFIED RECENTLY HE SAID HE IS ALSO SEEKING PARTNERS IN ASIA AND EUROPE MR BRANSON AND OTHER OFFICIALS AT THE UNIT OF VIRGIN GROUP LTD WOULDN'T IDENTIFY THE AIRLINES THEY ARE TALKING WITH ABOUT A PARTNERSHIP BUT SAID A DEAL WITH A US LINE MAY BE ARRANGED BY THE END OF THE YEAR A VIRGIN SPOKESMAN DESCRIBED THE POTENTIAL DEAL AS SIMILAR TO BRITISH AIRWAYSUSAIR WITHOUT THE EQUITY EXCHANGE EARLIER THIS YEAR BRITISH AIRWAYS BOUGHT A 246 EQUITY STAKE IN USAIR AND THE TWO NOW COOPERATE ON A WIDE RANGE OF ACTIVITIES MOST SIGNIFICANTLY BY USING THEIR OWN FLIGHT CODES FOR EACH OTHER'S SERVICES THE UK AIRLINE WHICH WAS LAUNCHED IN 1984 AND SPECIALIZES IN INTERCONTINENTAL FLIGHTS TO AND FROM LONDON ALSO IS LOOKING AT SETTING UP A NETWORK OF PARTNERSHIPS WITH SMALL EUROPEAN AIRLINES PLANS ARE BEING DRAFTED FOR A SERIES OF JOINT VENTURES IN WHICH OTHER STARTUP AIRLINES PAY FOR THE AIRCRAFT WHILE VIRGIN PROVIDES THE BRAND NAME MARKETING AND TRAINING SUCH LINKS WOULD GIVE VIRGIN A EUROPEAN NETWORK WHILE ALLOWING IT TO FOCUS ON ITS CORE INTERCONTINENTAL SERVICES SINCE LAST SPRING VIRGIN HAS HAD A JOINT VENTURE ARRANGEMENT WITH SOUTH EAST EUROPEAN AIRWAYS A FORMER CARGO CARRIER THAT OFFERS SERVICE UNDER THE VIRGIN NAME BETWEEN LONDON AND ATHENS GREECE A DUBLINLONDON VENTURE MAY SOON BE ANNOUNCED THE VIRGIN SPOKESMAN SAID THE STRATEGY IS ALL PART OF MR BRANSON'S GROWING AGGRESSIVENESS IN TAKING ON THE GOLIATHS OF THE AIRLINE INDUSTRY IN PARTICULAR BRITISH AIRWAYS VIRGIN PLANS TO ADD SEVERAL NEW ROUTES IN THE COMING YEAR INCLUDING LONDONHONG KONG AND LONDONSAN FRANCISCO AND MR BRANSON SAID HE EXPECTS THEY WILL HELP PUSH THE AIRLINE INTO REASONABLE PROFIT FOR THE FISCAL YEAR ENDED OCT 31 MR BRANSON EXPECTS EITHER A SMALL LOSS OR A SMALL PROFIT IN FISCAL 1992 VIRGIN REPORTED A PRETAX LOSS OF 14 MILLION 206 MILLION 9311040149 931104 WHO'S NEWS AST RESEARCH INC AST RESEARCH INC IRVINE CALIF SAFI QURESHEY PRESIDENT AND CHIEF EXECUTIVE OF THIS MAKER OF PERSONAL COMPUTERS WAS NAMED CHAIRMAN MR QURESHEY 42 WHO FOUNDED AST IN 1981 SUCCEEDS CARMELO J SANTORO 52 WHO BECOMES THE BOARD'S VICE CHAIRMAN 9311040148 931104 WHO'S NEWS CHASE MANHATTAN CORP CHASE MANHATTAN CORP NEW YORK BARRY BERKELEY 36 YEARS OLD WAS NAMED TO THE NEW POSITION OF MANAGING DIRECTOR AT THE NEWLY FORMED MORTGAGEBACKED SECURITIES DIVISION OF THE CHASE SECURITIES INC UNIT OF THIS BANK HOLDING COMPANY MR BERKELEY HAD BEEN MANAGING DIRECTOR OF MORTGAGEBACKED SECURITIES AT DAIWA SECURITIES AMERICAMERICA CORP A SECURITIES FIRM 9311040147 931104 COURT CLEARS GM SETTLEMENT WITH TEXAS TRUCK OWNERS DETROIT A TEXAS COURT HAS APPROVED A SETTLEMENT BETWEEN GENERAL MOTORS CORP AND 650000 GM PICKUP OWNERS IN TEXAS RESULTING FROM A CLASSACTION LAWSUIT THAT RAISED SAFETY CONCERNS ABOUT THE 19731987 TRUCKS THE SETTLEMENT WHICH IS SIMILAR TO ONE BEING OFFERED BY GM TO OWNERS IN 49 OTHER STATES PROVIDES A 1000 COUPON TO OWNERS OF C/K FULLSIZED PICKUPS IN TEXAS REPRESENTED IN THE CLASSACTION LAWSUIT THE COUPONS WHICH GM WOULD BEGIN DELIVERING IN ABOUT A MONTH CAN BE USED TOWARD THE PURCHASE OF A NEW CHEVROLET OR GMC PICKUP TRUCK GM HOWEVER HAS YET TO RECEIVE APPROVAL FROM A US DISTRICT COURT IN PHILADELPHIA FOR ITS BROADER SETTLEMENT WITH TRUCK OWNERS IN THE REST OF THE COUNTRY OPPONENTS TO THE AGREEMENT HAVE ARGUED THAT THE PROPOSED SETTLEMENT DOESN'T ADEQUATELY BENEFIT THE AFFECTED TRUCK OWNERS AND WON'T MAKE THE TRUCKS SAFE AN APPEAL BASED ON SIMILAR OBJECTIONS IS EXPECTED TO BE FILED IN TEXAS ONCE AN ORDER FOR THE APPROVED SETTLEMENT IS ENTERED THE PICKUPS IDENTIFIED IN THE CLASSACTION CASES HAVE BEEN CRITICIZED FOR THEIR FUELTANK DESIGN WHICH PLAINTIFFS HAVE ARGUED ARE PRONE TO FIRES IN SIDEIMPACT COLLISIONS THE TRUCKS HAVE ALSO BEEN THE SUBJECT OF A POSSIBLE RECALL BY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION 9311040146 931104 CANADA GOVERNMENT SELLS BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT SOLD AT AN AUCTION YESTERDAY 190 BILLION CANADIAN DOLLARS US145 BILLION OF 75 BONDS DUE DEC 1 2003 AT AN AVERAGE YIELD OF 6943 THE PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9311040145 931104 MICHAELS OCTOBER SALES ROSE 23 IRVING TEXAS MICHAELS STORES INC SAID OCTOBER SALES ROSE 23 TO 704 MILLION FROM 572 MILLION A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID SALES IN STORES OPEN A YEAR OR MORE WERE EVEN FOR THE YEAR TO DATE SALES CLIMBED 23 TO 3841 MILLION FROM 3111 MILLION A YEAR AGO WITH SALES AT STORES OPEN A YEAR OR MORE INCREASING 4 9311040144 931104 WHO'S NEWS INTERNATIONAL SPECIALTY PRODUCTS INC INTERNATIONAL SPECIALTY PRODUCTS INC WAYNE NJ RICHARD B OLSEN 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND JAMES P ROGERS 42 WAS NAMED SENIOR VICE PRESIDENT FINANCE OF THIS CHEMICALPRODUCTS CONCERN IN ADDITION MR ROGERS WAS NAMED SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER OF GAF CORP ISP'S PRINCIPAL SHAREHOLDER THE POSITIONS HAD BEEN HELD BY ALAN Z SENTER WHO LEFT THE COMPANIES 9311040143 931104 INTERNATIONAL FRANCE'S ACCOUNT SURPLUS FALLS PARIS FRANCE'S CURRENT ACCOUNT SURPLUS DROPPED SHARPLY IN JUNE TO 157 BILLION FRANCS 26464 MILLION FROM 1667 BILLION FRANCS IN MAY ACCORDING TO PRELIMINARY SEASONALLY ADJUSTED FIGURES FROM THE FRENCH ECONOMICS MINISTRY THE MINISTRY SAID THAT THE SIXMONTH CUMULATIVE SURPLUS ROSE SHARPLY IN ADJUSTED TERMS TO 3032 BILLION FRANCS FROM 654 BILLION FRANCS IN THE FIRST HALF OF 1992 9311040142 931104 WHO'S NEWS MONARCH MACHINE TOOL CO MONARCH MACHINE TOOL CO SIDNEY OHIO JOHN A BERTRAND 55 YEARS OLD PRESIDENT OF THE AO SMITH ELECTRICAL PRODUCTS CO IN TIPP CITY OHIO WAS NAMED TO MONARCH'S BOARD RETIRING FROM THE BOARD WAS NAGLE V GUSCHING WHO HAD SERVED SINCE 1981 9311040141 931104 CATERPILLARUAW'S TOUGH ROW GETS HOED PROFITABLY BY A FARMER BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL AS INVESTMENTS GO THE 19ACRE PLOT THAT FARMER LEONARD LARSON BOUGHT NEAR PONTIAC ILL WAS A DUD BUT THEN CATERPILLAR INC AND THE UNITED AUTO WORKERS CAME ALONG WITH THEIR BITTER CONTRACT DISPUTE ALWAYS EAGER TO EMBARRASS THE CONSTRUCTIONEQUIPMENT COMPANY THE UNION LEASED MR LARSON'S STRIP OF LAND WHICH RUNS ALONG 4H PARK ROAD JUST OUTSIDE CAT'S FACTORY FOR ABOUT 1500 FOR NINE MONTHS THE UNION WAS ABLE TO SEND MESSAGES TO ALL WHO APPROACHED THE PLANT A FEW WEEKS AGO MR LARSON GOT A CALL FROM A LOCAL LAWYER REPRESENTING A LAND TRUST THAT WANTED TO BUY THE PROPERTY MR LARSON BARGAINED BUT NOT FOR TOO LONG EXCEPT FOR SOMEONE WHO ONCE CONSIDERED BUILDING A DOUGHNUT SHOP ON THE SITE HE SAYS THERE HADN'T BEEN MUCH INTEREST IN THE LAND HE SOLD IT FOR 46000 6000 MORE THAN HE PAID FOR IT ABOUT 10 YEARS AGO THE SIGNS HAD TO GO HE TOLD THE UNION TERRY RAGLE PRESIDENT OF THE UAW LOCAL THAT HAD LEASED THE LAND SAYS THE INCIDENT SHOWS THAT CATERPILLAR WILL GO TO EXTREMES TO HIDE THE LABOR DISPUTE FROM THE PUBLIC A CATERPILLAR SPOKESMAN SAYS THE COMPANY HAS TALKED ABOUT BUYING THE PROPERTY FOR YEARS AND WHEN CONTACTED RECENTLY BY THE OWNER WE DECIDED TO GO AHEAD WITH THE PURCHASE MR LARSON HOWEVER SAYS THE LOCAL LAWYER CALLED HIM FIRST AND THE COMPANY HADN'T PREVIOUSLY SHOWN ANY INTEREST IN BUYING THE LAND IN ANY CASE THE SPOKESMAN SAYS CAT HASN'T ANY PLANS TO USE THE LAND BUT IT FILLS OUT THE PLAT BOUNDARIES OF THE COMPANY'S EXISTING PROPERTY MR LARSON WHO HAS TWO SONS A DAUGHTER AND A SONINLAW WHO WORK AT CATERPILLAR PLANTS SAYS HE HAS NOTHING AGAINST THE COMPANY OR THE UNION WHICH SIDE IS HE ON IN A DISPUTE IN WHICH NEITHER PARTY HAS TALKED TO THE OTHER FOR 17 MONTHS MY SIDE SAYS MR LARSON I SOLD GROUND I GOT RID OF IT AND I GOT THE MONEY 9311040140 931104 YOUR MONEY MATTERS INVESTMENT DARTBOARD PROS NOTCH ANOTHER WIN AGAINST DARTS BY JOHN R DORFMAN AND GEORGETTE JASEN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MONEY MANAGER LOUISA WARREN WON THIS COLUMN'S STOCKPICKING CONTEST FOR THE SECOND TIME IN A ROW HER VICTORY SPEARHEADED THE FOURTHCONSECUTIVE WIN FOR INVESTMENT PROFESSIONALS OVER A RANDOMLY SELECTED DARTBOARD PORTFOLIO INDEED WITH AN AVERAGE GAIN OF 5 THE PROS TROUNCED THE FORCES OF CHANCE FOUR STOCKS PICKED BY HEAVING DARTS AT STOCK LISTINGS POSTED AN AVERAGE LOSS OF 49 BUT THE INVESTMENT PROFESSIONALS FAILED TO BEAT THE DOW JONES INDUSTRIAL AVERAGE WHICH ADVANCED 57 DURING THE CONTEST PERIOD MAY 12 THROUGH OCT 29 IN A SERIES OF OVERLAPPING SIXMONTH CONTESTS THE PROS HAVE WON 24 TIMES THE DARTS 17 TIMES AGAINST THE INDUSTRIAL AVERAGE THE PROS HAVE 22 WINS AND 19 LOSSES THE AVERAGE SIXMONTH GAIN FOR THE PROS IS 84 COMPARED WITH 42 RAGE AND 33 FOR THE DARTS MS WARREN CHAIRMAN OF DMC MANAGEMENT CO WON THE LATEST CONTEST WITH A 161 GAIN IN MCDONALD'S CORP IN HER PREVIOUS OUTING SHE SCORED A 74 GAIN IN CHEMICAL BANKING CORP TRYING FOR A THIRD WIN SHE PICKS KMART CORP THE TROY MICH DISCOUNT RETAILER WITH CONSUMER CONFIDENCE ON THE RISE SHE HOPES FOR THE CHRISTMAS SELLING SEASON TO BE A LOT BETTER THAN LAST YEAR'S SHE IS PLEASED THAT KMART HAS AGREED TO SELL ITS PAYLESS DRUG STORES AND MANY OF ITS PACE WAREHOUSE STORES WITH THE PROCEEDS SHE SAYS THE REMODELING AND REBUILDING PROGRAM WHICH HAD BEEN PUT ON HOLD EARLIER THIS YEAR CAN NOW MOVE AHEAD MS WARREN ALSO APPLAUDS KMART'S SWITCH FROM FREQUENT PROMOTIONS TO EVERYDAY LOW PRICING AND BELIEVES ITS IMPROVED INVENTORYCONTROL SYSTEMS WILL HELP IT IN THE FIGHT AGAINST TOUGH COMPETITORS SUCH AS WALMART STORES INC AND SHE NOTES KMART STOCK IS CHEAP SELLING FOR ONLY 13 TIMES THE PAST FOUR QUARTERS' EARNINGS AND ONLY 11 TIMES HER ESTIMATE OF NEXT YEAR'S EARNINGS 225 THE STOCK TRADED LATE YESTERDAY AT 24875 ON THE NEW YORK STOCK EXCHANGE WHITNEY MERRILL MANAGER OF THE PAINEWEBBER DIVIDEND GROWTH FUND IS BACK FOR A FOURTH TIME AFTER THREE CONSECUTIVE SECONDPLACE FINISHES IN THE PREVIOUS CONTEST HIS CHOICE WAS SHERWINWILLIAMS CO WHICH ROSE 78 MR MERRILL'S LATEST PICK IS BANC ONE CORP OF COLUMBUS OHIO THE NATION'S EIGHTHLARGEST BANK HOLDING COMPANY IN TERMS OF ASSETS SOME INVESTORS WORRY THAT BANKS WON'T BE ABLE TO MAINTAIN THE WIDE MARGINS BETWEEN WHAT THEY PAY ON DEPOSITS AND WHAT THEY GET ON LOANS THOSE SPREADS FUELED TERRIFIC THIRDQUARTER EARNINGS WHICH SKEPTICS SAY MAY BE UNSUSTAINABLE BUT MR MERRILL SAYS MARGINS WON'T DETERIORATE AS MUCH AS THEY DID IN THE LATE 1980S BECAUSE SAVINGS AND LOAN INSTITUTIONS THAT PAID HIGH RATES ON DEPOSITS AND UNDERPRICED LOANS ARE GONE THE COMPETITIVE THREAT ISN'T THERE HE SAYS MR MERRILL SAYS BANC ONE IS A PREMIER COMPANY GROWING AT 13 A YEAR THERE ARE NO PROBLEMS ON THE HORIZON HE EXPECTS THE COMPANY WHICH DURING THE PAST 18 MONTHS HAS ACQUIRED BANKS IN WEST VIRGINIA ARIZONA AND COLORADO TO CONTINUE TO MAKE QUALITY REGIONAL ACQUISITIONS HE SAYS THE STOCK COULD RISE 20 TO 30 DURING THE COMING SIX MONTHS JOINING THE FESTIVITIES ARE TWO NEW PLAYERS BART A DILIDDO EDITS VECTORVEST STOCK ADVISORY AN INVESTMENT NEWSLETTER IN BATH OHIO PETE THOMAS IS PRESIDENT OF SKYE INVESTMENTS INC AN INVESTMENTMANAGEMENT FIRM IN ZEPHYR COVE NEV MR DILIDDO LIKES EMC CORP A HOPKINTON MASS MAKER OF DATASTORAGE DEVICES FOR MAINFRAME COMPUTERS THEIR GROWTH IS STILL VERY EXPLOSIVE HE SAYS WITH SALES ESTIMATED AT 690 MILLION THIS YEAR UP FROM 350 MILLION LAST YEAR AND EARNINGS PEGGED AT 1 A SHARE THIS YEAR COMPARED WITH 34 CENTS A SHARE IN 1992 FOR 1994 HE SAYS I THINK THEY'LL EARN OVER A BUCK AND A HALF ON SALES OF MORE THAN 1 BILLION THIS STOCK LOOKS TO ME LIKE IT COULD BE A 50 STOCK IN THE FIRST HALF OF NEXT YEAR HE SAYS THE STOCK TRADED LATE YESTERDAY AT 33375 ON THE BIG BOARD BUZZWORD OF THE YEAR MR THOMAS RECOMMENDS A SHORT SALE OF INTERACTIVE NETWORK INC IN A SHORT SALE AN INVESTOR SEEKS TO PROFIT FROM AN ANTICIPATED PRICE DECLINE BY SELLING BORROWED SHARES EVENTUALLY THE INVESTOR MUST BUY SHARES TO REPLACE THE BORROWED ONES BUT IF THE PRICE FALLS BEFORE THEN THE SHORT SELLER PROFITS INTERACTIVE NETWORK OF MOUNTAINVIEW CALIF IS DEVELOPING A HANDHELD DEVICE TO ALLOW TELEVISION VIEWERS TO INTERACT WITH THEIR SETS DURING GAME SHOWS AND SPORTING EVENTS THE UNIT IS BEING TESTMARKETED IN SACRAMENTO CALIF SAN FRANCISCO AND CHICAGO THE COMPANY PLANS TO EXPAND NATIONWIDE IN THE FALL OF 1994 ALTHOUGH INTERACTIVE SERVICES ARE ALL THE RAGE ON WALL STREET MR THOMAS QUESTIONS THIS COMPANY'S FINANCIAL STRENGTH AND PREDICTS ITS DEVICE WILL BE TOO COSTLY TO GAIN A WIDE MARKET MR THOMAS NOTES THAT THE STOCK IS UP ABOUT 50 SINCE THE END OF SEPTEMBER WHICH HE SAYS COULD BE RELATED TO EXCITEMENT ABOUT THE PROPOSED MERGER OF TELECOMMUNICATIONS INC AND BELL ATLANTIC CORP TELECOMMUNICATIONS OWNS ABOUT 15 OF INTERACTIVE NETWORK BUT HE THINKS INVESTORS ARE GETTING OVERHEATED INTERACTIVE IS THE BUZZWORD THIS YEAR HE SAYS WE DON'T THINK THERE'S MUCH DEMAND FOR THE PRODUCT FOR THE COMING SIX MONTHS THE PROS' PICKS WILL BE UP AGAINST A DARTBOARD PORTFOLIO CONSISTING OF BAKER FENTRESS CORP GEON CORP GUARDIAN BANCORP AND UNISYS CORP SERVICES/TRADELINE IMCLONE SYSTEMS UP 35 MARSH SUPERMARKETS DOWN 145 JENNIFER CONVERTIBLES DOWN 161 9311040139 931104 COFFEEHOUSE CRAZE SCALDS SOME OWNERS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL IN ELLENSBURG WASH A FARMING TOWN OF 7000 PEOPLE THERE ARE NO FEWER THAN FIVE DRIVETHROUGH ESPRESSO BARS AT OTHER BUSINESSES IN ELLENSBURG GOURMET COFFEE IS SIMPLY EXPECTED SHOPPERS AT THE SUPER 1 GROCERY STORE GRAB A QUICK ESPRESSO WHERE THEY PICK UP THEIR SHOPPING CARTS GOURMET COFFEE IS BEING SERVED UP JUST ABOUT EVERYWHERE IN THE US THESE DAYS AS AMERICANS DEMAND MORE SOPHISTICATED BREWS OFTEN SERVED IN A COZY COFFEEHOUSE ATMOSPHERE THE TREND HAS EVEN ATTRACTED MASSMERCHANDISERS WOOLWORTH CORP IS TESTING A NEW UNIT CALLED CUPPS FINE COFFEES WHICH WILL SELL SPECIALTY COFFEES TEA AND COCOA THE FIRST CUPPS STORE OPENED IN SAN FRANCISCO LAST WEEK TWO MORE ARE PLANNED FOR HAWAII NEXT SUMMER SEATTLEBASED STARBUCKS CORP LEADS THE FIELD WITH MORE THAN 250 ITALIANSTYLE COFFEE BARS AND IT PLANS TO OPEN 125 MORE STORES DURING FISCAL 1994 INCLUDING ITS FIRST SHOPS IN NEW YORK AND BOSTON A GANG OF SMALLER EQUALLY AMBITIOUS COFFEE BEAN AND BEVERAGE PURVEYORS ARE SCOUTING OUT STRATEGIC HIGHTRAFFIC LOCATIONS TO TRY TO CASH IN ON THE CAFFEINE CRAZE RETAIL SALES OF PACKAGED GOURMET COFFEE WERE 12 BILLION LAST YEAR AND ARE EXPECTED TO CLIMB TO 16 BILLION BY 1997 ACCORDING TO FIND/SVP A NEW YORK MARKETRESEARCH FIRM OVERHEATED MARKET BUT SOME CITIES ARE GETTING MORE COFFEE SHOPS THAN THEY CAN PROFITABLY SUSTAIN IN MINNEAPOLIS REGENCY COFFEE RETAIL INC WHICH OPERATES COFFEE BARS AND CARTS IN THE CITY'S SKYWAY SYSTEM SAW ITS EXPANSION PLANS STUNTED BY COMPETITION AND LAST MONTH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN LOS ANGELES SOME COFFEEHOUSES CLOSED RECENTLY AFTER TOO MANY COMPETITORS OPENED NEARBY EVEN REDHOT STARBUCKS SAW ITS SAMESTORE SALES DROP STEADILY FROM A 20 GAIN IN JUNE TO A 13 GAIN IN SEPTEMBER BUT STARBUCKS SAYS IT ANTICIPATED THE DROP AFTER SEVERAL YEARS OF HIGH DOUBLEDIGIT SAMESTORE SALES AND UNDETERRED IS PUSHING EAST AT JAVA CENTRALE INC A FRANCHISER OF COFFEE CAFES IN SACRAMENTO CALIF GARY NELSON PRESIDENT AND CHIEF EXECUTIVE INSISTS THERE IS STILL PLENTY OF ROOM IN THE INDUSTRY THIS ISN'T EVEN NEAR THE SATURATION POINT HE SAYS IT'S STILL VIRGIN TERRITORY IN MANY MARKETS JAVA CENTRALE SAYS IT HAS EIGHT STORES OPEN AND 100 MORE FRANCHISE OUTLETS UNDER CONTRACT CHOCK FULL O'NUTS CORP SAID IT PLANS NEXT YEAR TO START A CHAIN OF RETAIL COFFEE BARS AND SHOPS SELLING PREMIUM AND EUROPEANSTYLE COFFEE CHOCK FULL LEFT THE MORE DOWNSCALE RESTAURANT/COFFEE SHOP BUSINESS IN THE EARLY 1980S BOTH BIG COMPANIES AND ENTREPRENEURS ARE DRAWN TO COFFEE SHOPS BY THE RELATIVELY LOW ENTRY COSTS AND OPERATINGPROFIT MARGINS IN THE 20 RANGE LEASES ARE MODEST BECAUSE THE AVERAGE CAFE OR ESPRESSO BAR IS COMPACT GEARED FOR MOSTLY TAKEOUT SALES OWNERS PAY DEARLY FOR A 4000 COUNTERTOP CAPPUCCINO MAKER BUT THAT'S LOW COMPARED WITH MOST RESTAURANT EQUIPMENT CUSTOMERS DON'T SEEM TO BALK AT PAYING 325 FOR A DOUBLE CAPPUCCINO WHOSE INGREDIENTS TYPICALLY COST 50 CENTS AT MOST MANY SHOPS SERVE FOOD SUCH AS SANDWICHES AND PASTRIES BUT THEY TYPICALLY KEEP COSTS LOW BY CONTRACTING FOR THE FOOD KIM AND JOHN PUCKETT WHO BOTH LEFT CORPORATE JOBS SHE DUNKIN' DONUTS AND HE THE CONSULTANT BAIN & CO TO ESTABLISH A FOURSTORE CHAIN IN MINNEAPOLIS CALLED CARIBOU COFFEE CO SAY IT IS IMPORTANT TO CREATE A FRIENDLY NEIGHBORHOOD EXPERIENCE THEIR FOCUS IS ON GOOD SERVICE WITH THE STAFF TRAINED TO REMEMBER STEADY CUSTOMERS' FAVORITE BREW BY DIFFERENTIATING THEMSELVES THROUGH DECOR PRODUCTS AND SERVICE SMALL COFFEESHOP OPERATIONS BELIEVE THEY CAN SURVIVE ALONGSIDE THE BIG CHAINS FOR INSTANCE GREEN MOUNTAIN COFFEE INC OF WATERBURY VT EXPECTS ITS BURLINGTON VT STORE TO CONTINUE TO THRIVE EVEN THOUGH STARBUCKS WILL SOON MOVE INTO A LOCAL BARNES & NOBLE BOOKSTORE THE MARKET FOR COFFEE IS VERY LARGE PLUS WE OFFER MORE VARIETIES OF COFFEE FLAVORS THAN STARBUCKS SAYS ROBERT P STILLER PRESIDENT AND CHIEF EXECUTIVE OF GREEN MOUNTAIN WHICH RUNS EIGHT CAFES IN NEW ENGLAND AND UPSTATE NEW YORK WE HAVE MANY CUSTOMERS ACROSS THE STREET FROM A STARBUCKS WHO ARE NOT ONLY HOLDING THEIR OWN THEY ARE GAINING SALES SAYS JAMES MYERS PRESIDENT OF PORTLAND OREBASED COFFEE BEAN INTERNATIONAL A COFFEE ROASTER AND WHOLESALER TO INDEPENDENT RETAILERS 9311040138 931104 INTERNATIONAL DAIMLER SEES NINEMONTH LOSS GROWING TO 117 BILLION UNDER US ACCOUNTING SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY DAIMLERBENZ AG PROJECTED THAT ITS NET LOSS FOR THE FIRST NINE MONTHS OF THE YEAR WILL WIDEN TO TWO BILLION MARKS 117 BILLION FROM LESS THAN ONE BILLION MARKS IN THE FIRST HALF THE FIGURES ARE BASED ON US FINANCIAL DISCLOSURE RULES WHICH THE GERMAN INDUSTRIAL GROUP ADOPTED THIS YEAR FOR THE OCTOBER INTRODUCTION OF ITS SHARES ON THE NEW YORK STOCK EXCHANGE A COMPARABLE NINEMONTH NET FIGURE FOR 1992 UNDER US SECURITIES AND EXCHANGE COMMISSION RULES WASN'T AVAILABLE YESTERDAY THE COMPANY DIDN'T BEGIN USING SEC ACCOUNTING UNTIL SEPTEMBER THIS YEAR UNDER GERMAN ACCOUNTING THE NET LOSS WAS FAR NARROWER DAIMLER SWUNG TO A NINEMONTH GROUP NET LOSS OF 180 MILLION MARKS FROM A PROFIT OF 127 BILLION MARKS A YEAR EARLIER THE NINEMONTH FIGURES ARE APPROXIMATE THE COMPANY WILL PUBLISH A FINAL NINEMONTH REPORT INCLUDING SALES AND ORDERS ON DEC 14 LOSSES BALLOONED IN THE THIRD QUARTER BECAUSE OF HEAVY ONETIME CHARGES AGAINST EARNINGS TO COVER RESTRUCTURING AND LAYOFF COSTS DAIMLER SAID THE COMPANY HAS ESTIMATED THOSE CHARGES AT 15 BILLION MARKS DAIMLER PLANS TO SHED AT LEAST 35000 EMPLOYEES BY 1996 IN RESPONSE TO MOUNTING LOSSES AND SHRINKING MARKETS DAIMLER GERMANY'S LARGEST INDUSTRIAL GROUP FORECAST A CLEAR IMPROVEMENT IN ITS FOURTHQUARTER RESULTS WHICH WON'T BE BURDENED BY ADVANCE PROVISIONS IT SAID PROVISIONS FOR ALL LAYOFFS INCLUDING THOSE IN COMING YEARS WERE TAKEN IN THE THIRD QUARTER A SPOKESWOMAN SAID US ACCOUNTING RULES REQUIRED DAIMLER TO RECORD THE ONETIME CHARGES IN THE SAME QUARTER THAT THEY WERE DISCUSSED WITH UNIONS AND PUBLICLY ANNOUNCED EARLIER THIS WEEK DAIMLER CHAIRMAN EDZARD REUTER SAID HE WOULD CONSIDER CUTTING THE ANNUAL DIVIDEND FOR 1993 BACKING DOWN FROM REPEATED BOASTS THAT THE CASHRICH COMPANY COULD FINANCE A FLAT 13MARK 763 PAYOUT DESPITE THE LOSSES DAIMLER'S CHIEF FINANCIAL OFFICER GERHARD LIENER ANNOUNCED IN SEPTEMBER THAT LOSSES WOULD WIDEN FROM THE SIXMONTH REPORT BUT THAT THE COMPANY WOULD REACH ITS ABSOLUTE DEEP POINT BY THE END OF THE THIRD QUARTER DAIMLER'S MAIN DIVISIONS INCLUDE THE CORE MERCEDESBENZ AG AUTOMOTIVE UNIT DEUTSCHE AEROSPACE AG AND THE AEG AG ELECTRONICS UNIT ALL OF DAIMLER'S DIVISIONS ARE EXPECTED TO REPORT LOSSES THIS YEAR 9311040137 931104 BOMBARDIER UNIT BUYS AIRWORK MONTREAL BOMBARDIER INC SAID ITS SHORT BROTHERS PLC SUBSIDIARY COMPLETED THE PURCHASE OF AIRWORK LTD OF THE UK FOR 92 MILLION 136 MILLION IT SAID THE PURCHASE PRICE COULD BE INCREASED BY ABOUT 88 MILLION DEPENDING ON THE AWARD OF CERTAIN CONTRACTS THE COMPANY SAID AIRWORK BASED IN HURN ENGLAND PROVIDES AVIATION SUPPORT SERVICES IT ALSO PROVIDES TRAINING FOR PILOTS AND AIRTRAFFIC CONTROLLERS FOR CLIENTS IN THE UK AND THE MIDDLE EAST AIRWORK HAS ABOUT 2200 EMPLOYEES BOMBARDIER ADDED BOMBARDIER SAID THE PURCHASE WILL EXPAND ITS ACTIVITIES IN THE CIVILIAN AND MILITARY AVIATION SUPPORT BUSINESS 9311040136 931104 FIRST USA RAISES SHARE NUMBER DALLAS FIRST USA INC SAID ITS SHAREHOLDERS APPROVED AN INCREASE IN THE NUMBER OF AUTHORIZED SHARES TO 200 MILLION FROM 40 MILLION THE INCREASE WILL ENABLE THE COMPANY TO PAY A 2FOR1 STOCK SPLIT ANNOUNCED EARLIER THAT IS PAYABLE NOV 11 TO SHAREHOLDERS OF RECORD NOV 1 THE SPLIT WILL RAISE THE NUMBER OF SHARES OUTSTANDING TO 556 MILLION FROM 278 MILLION 9311040135 931104 MORRISON KNUDSEN CORP MORRISON KNUDSEN CORP BOISE IDAHO SAID IT HAD BEEN AWARDED THREE SEPARATE GOVERNMENT CONTRACTS FOR WORK ON ENVIRONMENTAL CLEANUP PROJECTS AT TWO SUPERFUND SITES IN CALIFORNIA AND AT SEVERAL US ARMY INSTALLATIONS IN HAWAII THE ENGINEERING AND CONSTRUCTION COMPANY SAID IT ANTICIPATED REVENUE FROM THE WORK TO EXCEED 100 MILLION 9311040134 931104 DIVIDEND NEWS ALLEGHENY POWER SYSTEM INC ALLEGHENY POWER SYSTEM INC NEW YORK SAID HOLDERS APPROVED A RECLASSIFICATION OF SHARES THAT WILL PERMIT A 2FOR1 STOCK SPLIT EFFECTIVE NOV 18 ON STOCK OF RECORD TODAY 9311040133 931104 WHO'S NEWS TELECOM CORP TELECOM CORP DALLAS FRANK W DENIUS WAS NAMED TO THE BOARD OF THIS DIVERSIFIED MANUFACTURER OF PROCESSING EQUIPMENT AND GIFT ITEMS FILLING A VACANCY MR DENIUS AN ATTORNEY IN AUSTIN TEXAS HAD SERVED ON THE BOARD FROM 1958 TO 1985 9311040132 931104 CIRCA PHARMACEUTICALS FORMER OFFICIAL REACH REPAYMENT AGREEMENT COPIAGUE NY CIRCA PHARMACEUTICALS INC SAID A FORMER EXECUTIVE CURRENTLY IN FEDERAL PRISON WILL TRANSFER TO THE COMPANY 367308 CIRCA SHARES TO REPAY THE COMPANY FOR LEGAL EXPENSES AND DAMAGE TO ITS REPUTATION THE PAYMENT SETTLES A HOST OF LAWSUITS BETWEEN CIRCA AND JACK RIVERS A FORMER EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THE COMPANY WHEN IT WAS NAMED BOLAR PHARMACEUTICAL CO AND HIS WIFE CLAIRE BOLAR CHANGED ITS NAME TO CIRCA EARLIER THIS YEAR CIRCA PRESIDENT MELVIN SHAROKY SAID THE COMPANY HAD SPENT ABOUT 600000 IN RECENT YEARS DEFENDING MR RIVERS AGAINST GOVERNMENT CHARGES THAT HE AND OTHER OFFICERS HAD RIGGED TESTS OF A NUMBER OF BOLAR DRUGS MR RIVERS PLEADED GUILTY IN EARLY 1992 TO TWO COUNTS OF MAKING FALSE STATEMENTS TO THE FOOD AND DRUG ADMINISTRATION AND ONE COUNT OF OBSTRUCTING FDA INVESTIGATIONS HE WAS SENTENCED TO FOUR YEARS IN FEDERAL PRISON AND FINED 1 MILLION EARLIER THIS YEAR THE SECURITIES AND EXCHANGE COMMISSION ACCUSED MR RIVERS OF SELLING STOCK IN THE COMPANY SHORTLY BEFORE THE PUBLIC DISCLOSURE OF THE RIGGED TESTS THE SETTLEMENT WILL BOOST FOURTHQUARTER EARNINGS BY 25 MILLION OR 11 CENTS A SHARE THE COMPANY SAID IN LATE AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CIRCA SHARES FELL 25 CENTS TO 1250 9311040131 931104 LUCK OR LOGIC DEBATE RAGES ON OVER EFFICIENTMARKET' THEORY BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR JUST OVER FIVE YEARS NOW THE INVESTMENT DARTBOARD COLUMN HAS PITTED INVESTMENT PROS AGAINST THE FORCES OF CHANCE IN THE FORM OF DARTS HEAVED AT THE STOCK LISTINGS ONE AIM HAS BEEN TO PROVIDE A LIGHTHEARTED TEST OF THE EFFICIENTMARKET THEORY THE THEORY HATED ON WALL STREET BUT ACCEPTED BY MANY ACADEMICS STATES THAT STOCKPICKING SUCCESS IS BASICALLY A RANDOM WALK OR A MATTER OF LUCK THE NOTION IS THAT SINCE ALL PUBLICLY KNOWN INFORMATION IS INSTANTANEOUSLY FACTORED INTO STOCK PRICES AN UNINFORMED PERSON OR A CHIMP THROWING DARTS CAN DO AS WELL AS A KNOWLEDGEABLE PROFESSIONAL THEORISTS ALLOW FOR A COUPLE OF EXCEPTIONS PEOPLE WHO POSSESS NONPUBLIC INSIDE INFORMATION CAN BEAT THE MARKET THEY SAY SOME EFFICIENTMARKET THEORISTS ALSO SAY PEOPLE WHO PICK RISKIER MORE VOLATILE STOCKS CAN BEAT THE MARKET SUCH STOCKS EXAGGERATE THE OVERALL MARKET'S UP AND DOWN MOVES IN THE AVERAGE YEAR MOST STOCKS HAVE MORE UPS THAN DOWNS SO THE ODDS ARE WITH THE RISKTAKER ANOTHER WAY OF LOOKING AT IT IS THAT INVESTORS DEMAND TO BE COMPENSATED FOR THE EXTRA RISK OF HOLDING A VOLATILE STOCK FIVE YEARS OF INVESTMENT DARTBOARD COLUMNS HAVE SIMPLY THROWN GASOLINE ON THE FLAMES OF THE DEBATE THERE'S FUEL FOR BOTH SIDES OF THE ARGUMENT ON THE SURFACE THE RESULTS CLEARLY FAVOR THE PROFESSIONALS AND GO AGAINST THE THEORY SINCE THE CONTEST ADOPTED ITS CURRENT RULES IN 1990 THE PROS HAVE WON 24 TIMES THE DARTS 17 TIMES THE AVERAGE SIXMONTH GAIN FOR THE PROS 84 HAS BEEN MUCH BETTER THAN THE 33 GAIN ACHIEVED BY THE DARTS THOSE FIGURES ARE PRICE CHANGES ONLY WITHOUT DIVIDENDS BUT BURTON MALKIEL AN ECONOMICS PROFESSOR AT PRINCETON UNIVERSITY AND A LEADING EXPONENT OF THE EFFICIENTMARKET THEORY SAYS THERE'S LESS THAN MEETS THE EYE IN THE PROS' APPARENT SUCCESS IN THE CONTEST ACCORDING TO PROF MALKIEL THE PROS' FAVORABLE SHOWING CAN BE EXPLAINED BY TWO FACTORS FIRST THEY ARE PICKING RISKIER MORE VOLATILE STOCKS THAN THE DARTS ARE SECOND THEY BENEFIT FROM A FAVORABLE PUBLICITY EFFECT ON THE DAY THE ARTICLE IS PUBLISHED WITH PROF MALKIEL GILBERT E METCALF AN ASSISTANT PROFESSOR OF ECONOMICS AT PRINCETON RECENTLY WROTE A PAPER ANALYZING THE DARTBOARD CONTESTS FROM 1990 THROUGH 1992 THE PROFESSORS FOUND THAT THE PROS' PICKS WERE ABOUT 40 MORE VOLATILE AND THEREFORE RISKIER THAN THE OVERALL MARKET THE DART STOCKS WERE ONLY ABOUT 6 MORE VOLATILE THAN THE MARKET IN OTHER WORDS THE PROS' SELECTIONS TEND TO MOVE UP OR DOWN 14 FOR EVERY 10 THE OVERALL MARKET MOVES ONCE YOU ADJUST FOR RISK THE RESEARCHERS SAY THE PROS' MARGIN SHRINKS TO 04 WHICH IS NOT STATISTICALLY SIGNIFICANT BUT THAT'S NOT ALL THE RESEARCHERS SAY THE PROS ARE RIDING THE COATTAILS OF A STRONG ANNOUNCEMENT EFFECT THAT CAUSES THE PROS' PICKS TO SURGE ON THE DAY THEY APPEAR IN THIS NEWSPAPER TAKE AWAY THE ANNOUNCEMENT EFFECT THEY SAY AND THE PROS' SUPERIORITY VANISHES ALTOGETHER IN THE CONTEST THE STARTING PRICE IS THE PRICE AT 4 PM EASTERN TIME THE DAY BEFORE THE ARTICLE APPEARS BUT MESSRS METCALF AND MALKIEL FOUND THAT IF RESULTS WERE MEASURED FROM 4 PM ON THE DAY THE ARTICLE APPEARS THE PROS' AVERAGE GAIN IN 19901992 WOULD HAVE BEEN NEARLY A PERCENTAGE POINT BEHIND THAT OF THE DARTS PARTISANS OF THE PROS WOULD REPLY THAT STARTING THE CLOCK AT 4 PM ON PUBLICATION DAY WOULD UNFAIRLY PENALIZE THE PROS THEIR BUY RECOMMENDATIONS WOULD HAVE AN ARTIFICIALLY HIGH STARTING POINT HAVING ALREADY BEEN PUSHED UP BY SEVERAL HOURS OF COLUMNINSPIRED TRADING ALSO THE SIXMONTH CONTEST PERIOD ALLOWS PLENTY OF TIME FOR THE PROS' PICKS TO COME BACK TO EARTH SO THE GREAT DEBATE REMAINS UNSETTLED WHICH OF COURSE ALLOWS THE FUN TO CONTINUE PROF MALKIEL INCIDENTALLY WAS THE HONORARY THROWER OF THE FIRST DART IN THE INVESTMENT DARTBOARD COLUMN BACK IN OCTOBER 1988 SEE RELATED ARTICLE YOUR MONEY MATTERS INVESTMENT DARTBOARD PROS NOTCH ANOTHER WIN AGAINST DARTS WSJ NOV 4 1993 9311040130 931104 STAR MANUFACTURING SEEKS BUYER ST LOUIS STAR MANUFACTURING INTERNATIONAL INC SAID IT HIRED BOWLES HOLLOWELL CONNER & CO A CHARLOTTE NC INVESTMENT BANKING FIRM TO SOLICIT PROPOSALS FOR THE ACQUISITION OF THE COMPANY STAR IS A PRIVATELY HELD COMPANY WITH FACILITIES IN SMITHVILLE TENN WHERE IT MANUFACTURES COMMERCIAL COOKING APPLIANCES FOR RESTAURANTS FASTFOOD OPERATORS CONVENIENCE STORES AND OTHER FOODSERVICE PROVIDERS 9311040129 931104 MAXUS ENERGY TO BOOST SPENDING DALLAS MAXUS ENERGY CORP SAID IT EXPECTS TO SPEND 385 MILLION THIS YEAR ON EXPLORATION DEVELOPMENT AND ACQUISITIONS UP FROM AN EARLIER ESTIMATE OF 325 MILLION THE OIL COMPANY SAID SPENDING WILL RISE TO PAY FOR THE PREPARATION OF OIL PRODUCTION IN BOLIVIA INCREASED AND ACCELERATED SPENDING ON A PROJECT IN ECUADOR AND A BOOST IN US SPENDING IN AN EFFORT TO TAKE ADVANTAGE OF HIGHER NATURAL GAS PRICES 9311040128 931104 ECUADOR TRIBES SUE TEXACO OVER CRUDEOIL POLLUTION NEW YORK INDIAN TRIBES FROM ECUADOR'S AMAZON BASIN HAVE FILED A LAWSUIT AGAINST TEXACO INC ALLEGING THAT THE COMPANY POLLUTED THEIR HABITAT WITH CRUDEOIL WASTE AND DEMANDING 1 BILLION IN DAMAGES IN THE SUIT WHICH WAS FILED IN FEDERAL COURT YESTERDAY THE TRIBES ALLEGE THAT TEXACO WHICH PRODUCED OIL IN ECUADOR FOR AT LEAST 20 YEARS POLLUTED PART OF THE RAIN FOREST WHERE THEY LIVE THEY CHARGE THAT THE WHITE PLAINS NY OIL COMPANY DUMPED MILLIONS OF GALLONS OF UNUSABLE CRUDE OIL INTO HUNDREDS OF MANMADE LAGOONS THROUGHOUT THE AMAZON REGION CAUSING MASSIVE CONTAMINATION TEXACO WHICH TURNED OVER ITS OPERATION TO THE ECUADOREAN GOVERNMENT IN JUNE 1992 PRODUCED AS MUCH AS 220000 BARRELS OF CRUDE OIL DAILY IN ECUADOR A TEXACO SPOKESMAN CALLED THE CHARGES OUTRAGEOUS AND CATEGORICALLY UNTRUE DURING ITS TIME THERE TEXACO SAYS IT CONSISTENTLY OPERATED UNDER SOUND INDUSTRY PRACTICES AND COMPLIED WITH ALL ECUADOREAN LAWS AND REGULATIONS THE COMPANY ALSO SAID ITS OPERATIONS THERE AFFECTED LESS THAN 1 OF THE RAIN FOREST TEXACO SHARES DECLINED YESTERDAY BY 375 CENTS TO 66375 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9311040127 931104 BUSINESS BRIEFS TRIBUNE BROADCASTING CO A UNIT OF TRIBUNE CO WILL ACQUIRE THE ASSETS OF INDEPENDENT TELEVISION STATION WLVICHANNEL 56 IN BOSTON FROM GANNETT CO TERMS WEREN'T DISCLOSED THE DEAL WILL BE COMPLETED IN 1994 SUBJECT TO FCC APPROVAL CLOSELY HELD SHAMROCK HOLDINGS INC BURBANK CALIF WILL SELL TWO RADIO STATIONS IN CLEVELAND WHKAM AND WMMSFM TO A UNIT OF OMNIAMERICA COMMUNICATIONS INC LOS ANGELES A PRIVATELY HELD RADIO OPERATOR TERMS WEREN'T DISCLOSED CHEMICAL BANKING CORP SAID A UNIT SIGNED A LETTER OF INTENT TO ACQUIRE THE SHAREHOLDER SERVICES BUSINESS OF A UNIT OF MARYLAND NATIONAL CORP BALTIMORE FIELDCREST CANNON INC EDEN NC SAID 182 SALARIED EMPLOYEES ACCEPTED A VOLUNTARY EARLY RETIREMENT PROGRAM FOR A TOTAL OF ABOUT 8 MILLION IN ANNUAL SALARY AND BENEFIT COSTS PROCTER & GAMBLE CO ACQUIRED THE FEMININEPROTECTIONPAD BUSINESS OF HIGIE BRAS A BRAZILIAN PRIVATELY HELD MAKER OF PAPER PRODUCTS TERMS WEREN'T DISCLOSED NEW PLAN REALTY TRUST ACQUIRED THREE MAJOR FACTORYOUTLET CENTERS IN BARSTOW CALIF BRANSON MO AND FORT CHISWELL VA FOR 522 MILLION FROM ANGELES CORP 9311040126 931104 SHAMROCK TO SELL RADIO STATIONS BURBANK CALIF SHAMROCK BROADCASTING INC SIGNED A LETTER OF INTENT TO SELL ITS CLEVELAND RADIO STATIONS WHKAM AND WMMSFM TO HIRSCH HOLDINGS OF CLEVELAND A UNIT OF OMNIAMERICA COMMUNICATIONS INC OF LOS ANGELES TERMS WEREN'T DISCLOSED SHAMROCK AND OMNIAMERICA SAID THEY EXPECT TO SIGN A DEFINITIVE AGREEMENT SOON SHAMROCK IS UNIT OF SHAMROCK HOLDINGS INC A CLOSELY HELD COMPANY OWNED PRINCIPALLY BY THE ROY E DISNEY FAMILY AND TREFOIL CAPITAL INVESTORS LP 9311040125 931104 ICH EXTENDS EXCHANGE OFFER LOUISVILLE KY ICH CORP SAID IT EXTENDED A DEBT EXCHANGE OFFER TO NEXT WEDNESDAY FROM THIS PAST TUESDAY AS OF TUESDAY HOLDERS HAD TENDERED 847 MILLION OF 3532 MILLION PRINCIPAL AMOUNT OUTSTANDING OF THE COMPANY'S 1125 SENIOR SUBORDINATED NOTES DUE 1996 HOLDERS ALSO TENDERED 38 MILLION OF 499 MILLION PRINCIPAL AMOUNT OUTSTANDING OF 165 SENIOR SUBORDINATED DEBENTURES DUE 1994 THE INSURANCE HOLDING COMPANY IS OFFERING NEW 1125 SENIOR SUBORDINATED NOTES DUE 2003 IN THE EXCHANGE OFFER WHICH STARTED OCT 4 9311040124 931104 CANADA'S LIBERALS ASSUME OFFICE PUT FOCUS ON ECONOMY BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA A NEW LIBERAL PARTY GOVERNMENT IS TO TAKE OFFICE IN CANADA TODAY WITH THE TASK OF RESTORING BUSINESS AND CONSUMER CONFIDENCE THE LIBERALS LED BY PRIME MINISTERDESIGNATE JEAN CHRETIEN WON THE OCT 25 ELECTION PLEDGING TO MAKE JOBS AND ECONOMIC GROWTH THEIR PRIORITY THE LIBERALS REPLACING THE PROGRESSIVE CONSERVATIVE PARTY THAT HAS GOVERNED FOR THE PAST NINE YEARS FACE TROUBLING INDICATORS THE CONFERENCE BOARD OF CANADA AN INDEPENDENT BUSINESSRESEARCH GROUP SAID YESTERDAY ITS INDEX OF BUSINESS CONFIDENCE FELL 77 IN THE JULYSEPTEMBER PERIOD THE INDEX IS A LEADING INDICATOR OF FUTURE ECONOMIC ACTIVITY AND BUSINESS INVESTMENT THE BOARD ATTRIBUTED THE DROP IN CONFIDENCE PARTLY TO A SLOWER PACE OF ECONOMIC GROWTH IN RECENT MONTHS THE LIBERALS HAVE PROMISED TO GIVE A MODEST BOOST TO ECONOMIC GROWTH BY LAUNCHING A SIX BILLION CANADIAN DOLLAR US46 BILLION PUBLIC WORKS PROGRAM JOINTLY WITH PROVINCES AND MUNICIPALITIES MR CHRETIEN WILL INDICATE HIS GOVERNMENT'S ECONOMIC DIRECTION WHEN HE NAMES HIS CABINET'S MEMBERS TODAY THE LIBERAL CABINET WILL PROBABLY BE FAIRLY CONSERVATIVE IN THE KEY FINANCIAL AND ECONOMIC PORTFOLIOS SAID LEO DE BEVER CHIEF ECONOMIST WITH NOMURA CANADA INC PAUL MARTIN A FORMER MONTREAL BUSINESS EXECUTIVE IS EXPECTED TO GET A SENIOR ECONOMIC POST POSSIBLY FINANCE MR MARTIN A FISCAL CONSERVATIVE SAID RECENTLY THAT LIBERALS BACK DOWN FROM NO ONE IN THEIR DESIRE TO ELIMINATE THE GOVERNMENT'S BUDGET DEFICIT WHICH IS EXPECTED TO TOTAL MORE THAN C33 BILLION THIS YEAR THE LIBERALS PREDICT THEIR PUBLIC WORKS PROGRAM WILL STRENGTHEN CONSUMER AND BUSINESS SENTIMENT CONSUMER CONFIDENCE HAS BEEN SAPPED BY AN 11 UNEMPLOYMENT RATE AND LOWER AFTERTAX PERSONAL INCOME SAID ARON GAMPEL BANK OF NOVA SCOTIA'S ASSISTANT CHIEF ECONOMIST EDWARD NEUFELD ROYAL BANK OF CANADA'S EXECUTIVE VICE PRESIDENT SAID THE SLOWER GROWTH RECENTLY WAS TEMPORARY HE PREDICTED THE ECONOMY WILL GROW 27 THIS YEAR 39 IN 1994 AND 43 IN 1995 HE SAID CANADA'S DEEPLY ROOTED RECOVERY IS BEING LED BY EXPORTS AND INVESTMENT SPENDING CANADA'S EXPORTS TO THE US IN THE FIRST EIGHT MONTHS OF THIS YEAR WERE UP ALMOST 21 FROM A YEAR EARLIER MORE THAN 80 OF CANADA'S EXPORTS GO TO THE US 9311040123 931104 WHO'S NEWS MITSUBISHI'S US UNIT NAMES WARREN TO POST CYPRESS CALIF MITSUBISHI MOTOR SALES OF AMERICA INC NAMED JOHN WARREN TO THE NEWLY CREATED POSITION OF DIRECTOR OF FRANCHISE AND SALES PLANNING MR WARREN 41 YEARS OLD WILL DEVELOP MITSUBISHI'S NATIONAL DEALER MARKETING PLAN AND A MARKET INVESTMENT PROGRAM TO SUPPORT MINORITY DEALERS HE'S EXPECTED TO HELP THE AUTO MAKER REACH IT OF 200000 CARS AND TRUCKS ANNUALLY LAST YEAR THE UNIT OF JAPAN'S MITSUBISHI MOTORS CORP SOLD 176901 VEHICLES IN THE US MR WARREN WILL REPORT DIRECTLY TO THE UNIT'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER RICHARD D RECCHIA MITSUBISHI HIRED MR WARREN FROM NISSAN MOTOR CORP WHERE HE MOST RECENTLY SERVED AS DIRECTOR OF PRODUCT PLANNING IN TORRANCE CALIF THE AUTO MAKER ALSO APPOINTED SEVERAL NEW REGIONAL SALES DIRECTORS AND DISTRIBUTION MANAGERS TO HELP TE COMPANY ACHIEVE ITS SALES OBJECTIVE AND EXECUTE ITS MARKETING PLANS 9311040122 931104 ENTERPRISE MONTANA ENTREPRENEURS ENVIRONMENTALISTS JOIN HANDS UNUSUAL ALLIANCE WILL DEVELOP LANDUSE PLAN TO FIGHT OUTSIDE INTERESTS BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL KALISPELL MONT WHILE MANY SMALL BUSINESSES AROUND THE COUNTRY HAVE SUCCUMBED TO GIANT RETAILERS ENTREPRENEURS HERE ARE FIGHTING BACK BUCKING THE REGION'S TRADITION OF FLINTY INDEPENDENCE THEY ARE JOINING A BROAD EFFORT TO PRESERVE LOCAL CONTROL OF THE FLATHEAD VALLEY AS OUTSIDE INTEREST IN THE AREA SOARS ONE UNUSUAL CONSEQUENCE SMALL BUSINESS IS WORKING WITH ENVIRONMENTALISTS TO GET WHAT IT WANTS THIS SCENIC SWATH OF MOUNTAINS LAKES AND FORESTS IS BIGGER THAN THE STATE OF CONNECTICUT BUT COUNTS ONLY 64000 PERMANENT RESIDENTS SO THERE IS PLENTY OF ROOM FOR ECONOMIC GROWTH AND THAT IS THE POTENTIAL PROBLEM SMALL BUSINESSES IN THE AREA CONCENTRATED MAINLY IN THE TOWNS OF WHITEFISH KALISPELL AND COLUMBIA FALLS SAY THEY WELCOME THE MONEY THAT HAS ACCOMPANIED THE RECENT TOURISM BOOM AND INFLUX OF RETIREES BUT THEY WANT TO MAKE SURE THAT THE INCREASED ECONOMIC ACTIVITY DOESN'T LEAVE THEM BEHIND THEY FEAR THAT NATIONAL CHAINS OR CHIC BOUTIQUES MIGHT DRIVE THEM OUT OF BUSINESS OR OUT OF TOWN THEY ALSO WORRY THAT THE REGION WILL BECOME OVERDEPENDENT ON TOURISM AND THAT UNMANAGED GROWTH WILL HARM THE AREA'S NATURAL RESOURCES SO THEY HAVE JOINED ENVIRONMENTALISTS POLITICIANS CONCERNED CITIZENS AND SEVERAL LARGE BUSINESSES TO HELP SUPPORT THE COOPERATIVE PLANNING COALITION THIS LOCAL NONPROFIT ORGANIZATION IS ATTEMPTING TO DEVELOP A LANDUSE PLAN THAT WILL CHART THE FUTURE OF FLATHEAD VALLEY FOR SMALL RETAILERS THE UNUSUAL ALLIANCE WITH ENVIRONMENTALISTS TO CONTROL GROWTH REPRESENTS A SIGNIFICANT CHANGE IN ATTITUDE BASICALLY THE SMALL BUSINESSES THAT HAVE BEEN REACTIONARY ARE GOING TO BE IN TROUBLE SAYS PAUL WACHHOLZ WHO OWNS FOUR REALESTATE AGENCIES HERE SMALL BUSINESSES REALIZE THEY NOW NEED TO BE PROACTIVE RATHER THAN REACTIVE THE COALITION HOPES THAT A VIABLE LANDUSE PLAN WILL CARVE OUT DISTINCT AREAS FOR RESIDENTIAL COMMERCIAL AND RECREATIONAL USE BECAUSE LARGE RETAILERS SUCH AS KMART CORP HAVE ALREADY LOCATED HERE AND COSTCO WHOLESALE CORP IS OPENING A STORE NEXT YEAR THE PLAN TARGETS SMALL RETAILERS FOR SUPPORT WE'RE ABOUT 20 YEARS BEHIND WHAT'S HAPPENED ON THE COAST IN OREGON AND WASHINGTON SAYS JEAN ROBOCKER A LOCAL FARMER AND ACTIVE CONSERVATIONIST I'M HEARTBROKEN ABOUT WHAT MAY HAPPEN TO THE SMALL SHOPS DOWNTOWN THAT JUST DON'T HAVE THE APPEAL THESE BIG CHAINS HAVE KALISPELL ALREADY HAS LEGAL PROVISIONS RESERVING PARTS OF THE DOWNTOWN AREA FOR SMALLBUSINESS USE COALITION MEMBERS SAY THEY HOPE A REVISED MASTER PLAN WILL FORMALIZE SIMILAR LANDUSE PROVISIONS IN THE VAST UNINCORPORATED AREAS OUTSIDE OF THE MAIN TOWNS WHILE SUCH PLANNING WON'T KEEP NEWCOMERS OUT MEMBERS HOPE IT WILL LIMIT THE ROLE THEY PLAY IN DETERMINING THE REGION'S FUTURE THE COALITION MEMBERS SAY SUCH MEASURES ARE NECESSARY TO KEEP THE LOCAL ECONOMY DIVERSE ESPECIALLY IN THE FACE OF DECLINES IN THE TIMBER INDUSTRY IF THE REGION HOOKS ITSELF TO TOURISM IT COULD BE IN FOR SOME VERY TOUGH TIMES SHOULD THE ECONOMY TURN SOUR AND PEOPLE STOP TRAVELING SAYS CHARLES BUCHWALTER OWNER OF WHITEFISH MAGAZINE DESIGN A LOCAL PUBLISHING COMPANY AND A SUPPORTER OF THE COALITION'S WORK THIS IS A GRASSROOTS EFFORT TO MAKE SURE THAT DOESN'T HAPPEN TOURIST INTEREST IN THE FLATHEAD VALLEY STARTED PERCOLATING ABOUT FIVE YEARS AGO WHEN THE STATE BEGAN PROMOTING IT AS A VACATION SPOT ENDOWED WITH LARGE LAKES DRAMATIC MOUNTAIN VISTAS GOOD SKIING AND GLACIER NATIONAL PARK THE VALLEY HAS BECOME ONE OF THE MORE POPULAR SECONDHOME MARKETS WEST OF THE MISSISSIPPI LAST YEAR 22 MILLION PEOPLE VISITED GLACIER NATIONAL PARK UP FROM 16 MILLION A DECADE EARLIER THE FLATHEAD VALLEY'S PERMANENT POPULATION WHICH GREW TO 59000 IN 1990 FROM ABOUT 52000 IN 1980 IS NOW ESTIMATED TO BE ABOUT 64000 ACCORDING TO THE KALISPELL AREA CHAMBER OF COMMERCE REALESTATE PRICES ARE UP AS WELL INCREASING ABOUT 50 OVER THE PAST TWO YEARS LOCAL REALESTATE AGENTS SAY THIS FLURRY OF OUTSIDE INTEREST HAS PUT MANY LOCALS ON GUARD WE'RE BEING INUNDATED WITH PEOPLE COMING HERE FROM THE MEGALOPOLISES AROUND THE COUNTRY SAYS BILL HEDSTROM VICE CHAIRMAN OF THE FLATHEAD BOARD OF COUNTY COMMISSIONERS WE JUST THOUGHT THEY WERE TOURISTS COMING AND GOING WE DIDN'T REALIZE THEY WERE PURCHASING THESE LITTLE PARCELS OF LAND AND PLANNING TO COME HERE TO RETIRE TO RESPOND TO THESE PRESSURES THE COOPERATIVE PLANNING COALITION AND ITS FUNDRAISING ARM THE FLATHEAD SOLUTION BEGAN CAMPAIGNING LAST MAY FOR A NEW LANDUSE PLAN DIRECT MAILINGS AND PUBLIC MEETINGS HAVE SOLICITED COMMUNITY PARTICIPATION AND THE GROUP HOPES TO HAVE A PLAN BEFORE THE LOCAL LEGISLATURE BY NEXT JUNE THE GROUP OFTEN MAKES FOR STRANGE BEDFELLOWS PLUM CREEK TIMBER CO A SEATTLE CONCERN THAT IS A LARGE LANDHOLDER IN THE FLATHEAD VALLEY AND OTHER PARTS OF MONTANA IS HELPING THE COALITION RAISE MONEY PLUM CREEK HAS BEEN CRITICIZED IN MONTANA FOR HARVESTING LARGE AMOUNTS OF TIMBER AND NOT REPLANTING THE COMPANY SAYS SUCH CRITICISM IS NO LONGER VALID BECAUSE IT IS NOW PURSUING DIFFERENT HARVESTING METHODS THAT ARE MORE ECOLOGICALLY SOUND OTHERS INVOLVED WITH THE COALITION SUCH AS MS ROBOCKER THE FARMER SAY THEY ARE UNCOMFORTABLE WITH PLUM CREEK'S RECORD BUT SAYS MS ROBOCKER SHE WELCOMES THE TIMBER GIANT'S INVOLVEMENT BECAUSE EVERYBODY HAS TO BE IN ON THIS PROCESS OR IT JUST WON'T WORK STILL SOME ACKNOWLEDGE THAT AS FAR AS SMALL BUSINESS IS CONCERNED LANDUSE MEASURES MAY ONLY FORESTALL THE INEVITABLE IF WALMART COMES HERE NEXT YEAR AND DECIDES TO BUILD A SHOPPING CENTER THAT MEETS ZONING REQUIREMENTS I DON'T SEE HOW WE COULD KEEP THEM OUT SAYS DOUG RAUTHE KALISPELL'S MAYOR AND OWNER OF AN ARTSUPPLY STORE IT'LL HURT AND IT'LL CHANGE EVERYTHING BUT IT'S GOING TO HAPPEN SO YOU HAVE TO ADJUST TO IT 9311040121 931104 WHO'S NEWS FOSTER WHEELER SAYS AZZATO PLANS TO RETIRE SWIFT IS HEIR APPARENT CLINTON NJ FOSTER WHEELER CORP SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER LOUIS E AZZATO PLANS TO RETIRE NEXT MAY 1 BUT WILL REMAIN A DIRECTOR THE ENGINEERING CONSTRUCTION AND MANAGEMENT COMPANY SAID IT IS EXPECTED THAT RICHARD J SWIFT CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER WILL BE NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE AT THE APRIL BOARD MEETING MR SWIFT 49 YEARS OLD HAS BEEN PRESIDENT SINCE LATE 1992 MR AZZATO'S RETIREMENT AT WHICH TIME HE WILL BE 64 YEARS OLD IS PART OF A PLANNED SUCCESSION PROGRAM THE COMPANY SAID MR AZZATO WHO JOINED FOSTER WHEELER AS A CHEMICAL PROCESS ENGINEER IN 1952 WAS ELECTED PRESIDENT IN 1981 AND CHAIRMAN IN 1988 9311040120 931104 GENERAL INSTRUMENT AND SCIENTIFICATLANTA SETTLE PATENT DISPUTES CHICAGO ILL GENERAL INSTRUMENT CORP AND SCIENTIFICATLANTA INC SAID THEY SETTLED PATENT LITIGATION BETWEEN THEM AGREEING TO DISMISS THE LAWSUITS AND REACH A CROSSLICENSING AGREEMENT THE PATENTS AT ISSUE INVOLVE THE SCRAMBLING OF CABLE AND SATELLITETELEVISION SIGNALS AND PAYPERVIEW TECHNOLOGY TERMS WEREN'T DISCLOSED THE SUITS TO BE DISMISSED UNDER THE SETTLEMENT WERE FILED IN FEDERAL COURTS IN NEWARK NJ BALTIMORE AND SAN DIEGO BOTH COMPANIES ARE MANUFACTURERS OF ELECTRONIC INSTRUMENTS AND COMMUNICATIONS EQUIPMENT SCIENTIFICATLANTA IS BASED IN ATLANTA 9311040119 931104 WHO'S NEWS UTILICORP UNITED INC UTILICORP UNITED INC KANSAS CITY MO ROBERT K GREEN 31 YEARS OLD AN EXECUTIVE VICE PRESIDENT OF THIS UTILITY CONCERN AND ITS CHIEF EXECUTIVE OFFICER'S YOUNGER BROTHER WAS NAMED A DIRECTOR EXPANDING THE BOARD TO NINE 9311040118 931104 REVIEW & OUTLOOK EDITORIAL IT'S THE TAXES STUPID TAX CUTS FOR THE RICH ARE BEING RECONFIRMED AS THE POLITICAL EQUIVALENT OF THE BUBONIC PLAGUE SUPPLYSIDERS INCLUDING 1996 GOP PRESIDENTIAL HOPEFUL JACK KEMP STAND TO LOSE A LOT OF CREDIBILITY POLITICAL ANALYST KEVIN PHILLIPS WRITING IN THE OCTOBER 31 WASHINGTON POST ON THE RACE FOR NEW JERSEY GOVERNOR THIS MEANS THE DEATH OF SUPPLYSIDE ECONOMICS WHEN IS THE FUNERAL JAMES CARVILLE POLITICAL STRATEGIST FOR PRESIDENT CLINTON AND GOVERNOR FLORIO ON A SEPTEMBER NEW YORK TIMES POLL SHOWING CHRISTINE TODD WHITMAN BEHIND BY 21 POINTS IN NEW JERSEY POSTFLORIO IT LOOKS TO US LIKE THE TAX ISSUE IS BACK IN THE DRIVER'S SEAT OF AMERICAN POLITICS WHILE A BUNCH OF HOTRODDING PUNDITS RAN OUT OF GAS BEFORE THEY MADE IT BACK ACROSS THE DELAWARE MEMORIAL BRIDGE THE NEW YORK TIMES REPORTS MR CARVILLE WAS DUMBFOUNDED BY HIS CLIENT'S UPSET LOSS TO CHRISTIE WHITMAN WHO YESTERDAY REITERATED HER COMMITMENT TO CUTTING THE STATE'S INCOME TAX BY 30 OVER THREE YEARS ELSEWHERE THE VOTERS SENT A CLEAR MESSAGE THAT THEY'RE DEMANDING VALUE FOR THEIR TAX MONEY FIRERAVAGED CALIFORNIA VOTERS EXTENDED A HALFCENT SALES TAX HIKE EARMARKED FOR POLICE AND FIRE SERVICES SOUNDS SENSIBLE TO US THEY REJECTED 71 TO 29 A PROPOSAL TO ALLOW SCHOOL BONDS TOMAJORITY INSTEAD OF TWOTHIRDS LIBERAL WASHINGTON STATE TURNED DOWN A 1 BILLION ROLLBACK OF TAX INCREASES AFTER A MASSIVE AD CAMPAIGN WARNED THAT THE STATE'S PRIZED UNIVERSITIES WOULD COLLAPSE NO MORE TRIPS TO THE ROSE BOWL THEY DID PASS A MORE FARREACHING MEASURE THAT LIMITS INCREASES IN STATE SPENDING TO POPULATION GROWTH AND INFLATION ANY SPENDING BEYOND THAT WILL HAVE TO BE APPROVED BY A VOTE OF THE PEOPLE HEADING FOR HIS LANDSLIDE VICTORY FOR GOVERNOR OF VIRGINIA GEORGE ALLEN EMPHASIZED THAT SMALL GOVERNMENT IS BEAUTIFUL AND VOWED NOT TO RAISE TAXES ANTITAX REPUBLICANS ALMOST CAPTURED THE LOWER LEGISLATIVE HOUSE BUT IT WAS IN NEW JERSEY WHERE THE TAX ISSUE REALLY RESONATED AND WHERE PRESIDENT CLINTON INVESTED A BIG CHUNK OF POLITICAL CAPITAL THE PRESIDENT CONSTANTLY ASKED HIS POLLSTERS HOW HIS FRIEND JIM FLORIO WAS DOING HE AND SURROGATES BLANKETED THE STATE HILLARY CLINTON BECAME A GARDEN STATE REGULAR TELLING A RALLY LAST WEEK THAT IT WAS VITAL TO REELECT MR FLORIO BECAUSE IT WILL SEND A HUGE SIGNAL ACROSS THE COUNTRY WITH MR FLORIO'S POLITICAL CAREER NOW OVER THE HOUSE DEMOCRATS IN WASHINGTON WHO PASSED THE WHOPPING CLINTON TAX INCREASE THIS YEAR ARE ALREADY WORRYING THAT THEIR VOTE WILL HAUNT THEM NEXT NOVEMBER LISTEN TO THE ECHOES OUT OF NEW JERSEY IN 1989 NEW DEMOCRAT JIM FLORIO WAS ELECTED CLAIMING HE SAW NO NEED FOR NEW TAXES HE PROMPTLY PROPOSED A HUGE TAX INCREASE AS THE MAIN SOLUTION TO A BIG DEFICIT AND ONLY NARROWLY RAMMED IT THROUGH A FRIENDLY LEGISLATURE IN THE NEXT AVAILABLE ELECTION DEMOCRATS SUFFERED HUGE LOSSES IN THE LEGISLATURE THIS YEAR MR FLORIO DECIDED THAT RUNNING ON HIS STATE'S ECONOMY WAS STUPID AND MOVED RIGHT ON WELFARE AND SOCIAL ISSUES MEANWHILE THE WHITMAN CAMPAIGN STUMBLED THEN LAST MONTH MRS WHITMAN REFOCUSED ON MR FLORIO'S TAXDRENCHED ECONOMIC RECORD AND THE JOBS THAT THE INCENTIVES FROM HER TAX CUTS WOULD CREATE BUT ALMOST EVERY NEWS OUTLET WORKING THE STATE SAVAGED HER 30 TAX CUT PROPOSAL SAYING IT HAD BOMBED WITH THE VOTERS THE TABLE NEARBY TELLS A DIFFERENT MUCH MORE INTERESTING STORY ABOUT THE POLITICS OF TAXES TODAY THE EXIT POLLS TUESDAY SHOW THAT THE WHITMAN CAMPAIGN ENDED WITH 47 OF VOTERS BELIEVING HER TAX CUT WAS POSSIBLE WITHOUT CUTS IN ESSENTIAL SERVICES THAT'S NO TOUCHDOWN BUT MEASURED AGAINST THE UNIVERSAL MOCKERY IT'S A SURPRISE RESULT NOW LET'S RELATE THAT TO THE OTHER NUMBERS BY A 14POINT MARGIN THE VOTERS CONCLUDED THAT THE FLORIO TAX INCREASES SPUN BY THE CLINTON STRATEGISTS AS AN ACT OF COURAGE WERE A MISTAKE HOW COME BECAUSE AS THE EXIT POLLS ALSO CONFIRM VOTERS PERSISTENTLY REJECT BIG TAXDEPENDENT GOVERNMENT BY NEARLY TWO TO ONE NEW JERSEY VOTERS PREFER LOWER TAXES WITH FEWER SERVICES GEE THAT'S SOMETHING WE NORMALLY ASSOCIATE WITH AN ACTOR FROM CALIFORNIA WHO WON TWO PRESIDENTIAL ELECTIONS THE ELECTION RESULTS SHOULD MAKE DEMOCRATS SKEPTICAL OF INTEREST GROUP POLITICS AND TAX AND SPEND POLICIES SAYS MINNESOTA REP TIM PENNY A MODERATE DEMOCRAT INDEED THIS WEEK'S VOTER REJECTION OF INTERESTGROUP LIBERALISM OUGHT TO ALERT MR CLINTON TO THE IMPORTANCE OF LISTENING TO CENTRIST VOICES IN HIS OWN PARTY IF HE CONTINUES HIS PRESENT COURSE HIS ADMINISTRATION'S FUTURE PROSPECTS MAY LOOK MORE AND MORE LIKE THE DEMOCRATIC LOSERS OF NEW JERSEY WOULD YOU RATHER HAVE 1 GOVERNMENT PROVIDE MORE SERVICES BUT COST MORE IN TAXES 2 GOVERNMENT COST LESS IN TAXES BUT PROVIDE FEWER SERVICES HOW DO YOU FEEL ABOUT JIM FLORIO'S RAISING TAXES IN 1990 DO YOU BELIEVE IT'S POSSIBLE TO CUT NEW JERSEY INCOME TAXES BY 30 OVER THE NEXT THREE YEARS WITHOUT CUTTING ESSENTIAL SERVICES 9311040117 931104 CBOE MAKES OFFER TO BUY EXCHANGE IN PHILADELPHIA BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO BOARD OPTIONS EXCHANGE THE NATION'S BIGGEST STOCK OPTIONS MARKET OFFERED TO ACQUIRE THE PHILADELPHIA STOCK EXCHANGE THE FOURTHLARGEST OPTIONS EXCHANGE TERMS OF THE OFFER WEREN'T DISCLOSED BUT PEOPLE FAMILIAR WITH IT SAID THE CHICAGO EXCHANGE HAD OFFERED 120000 FOR EACH OF THE PHILADELPHIA EXCHANGE'S 505 MEMBERSHIPS WHICH WOULD PLACE THE VALUE OF THE TRANSACTION AT ABOUT 606 MILLION PHILADELPHIA EXCHANGE MEMBERSHIPS ARE NOW VALUED AT ABOUT 90000 EACH THE PHILADELPHIA EXCHANGE WHICH OFFERS WELLKNOWN STOCK OPTIONS SUCH AS HOME DEPOT AND FANNIE MAE SUSPENDED TRADING OF ITS MEMBERSHIPS WHILE IT CONSIDERS THE MERGER PROPOSAL WHICH IT RECEIVED ON TUESDAY WE ARE FLATTERED BY THE CBOE'S PROPOSAL IN AS MUCH AS IT COMES FROM THE WORLD'S FIRST AND LARGEST LISTED OPTIONS MARKET NICHOLAS GIORDANO PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PHILADELPHIA EXCHANGE SAID IN A STATEMENT AS WITH OFFERS THAT HAVE BEEN MADE BY OTHER EXCHANGES THE CBOE'S PROPOSAL WILL BE GIVEN CAREFUL CONSIDERATION BY THE PHILADELPHIA EXCHANGE'S BOARD OF GOVERNORS BY MERGING WITH THE PHILADELPHIA EXCHANGE THE CBOE WOULD GAIN A MAJOR ADVANTAGE IN MARKET SHARE OVER ITS PRINCIPAL COMPETITOR THE AMERICAN STOCK EXCHANGE TOGETHER THE PHILADELPHIA AND CHICAGO EXCHANGES WOULD CONTROL ABOUT 60 OF THE NATION'S OPTIONS VOLUME CBOE EXECUTIVES REFUSED TO COMMENT YESTERDAY ON THE ACQUISITION PROPOSAL IN 1990 THE PHILADELPHIA EXCHANGE'S BOARD REJECTED AN ACQUISITION PROPOSAL FROM THE AMEX WHICH IS THE NATION'S SECONDBIGGEST OPTIONS EXCHANGE THE AMEX SEEN AS AN AGGRESSIVE COMPETITOR IN THE OPTIONS BUSINESS WAS SEEKING TO ACQUIRE ONLY THE PHILADELPHIA EXCHANGE'S STOCK AND STOCKOPTIONS OPERATION NOT ITS BOOMING FOREIGN CURRENCY OPTIONS MARKET MANY IN THE OPTIONS INDUSTRY HAVE PREDICTED CONSOLIDATION OF THE FOUR MAJOR US OPTIONS EXCHANGES SINCE THE STOCKMARKET CRASH OF 1987 OPTIONS TRADING VOLUME HAS DROPPED SHARPLY AS INVESTORS PULLED AWAY FROM STOCK OPTIONS THE PREVAILING VIEW IN THE INDUSTRY IS THAT OPTIONS VOLUME IS CURRENTLY TOO LOW TO SUPPORT FOUR MAJOR EXCHANGES THE PHILADELPHIA EXCHANGE IS MOST OFTEN MENTIONED AS A POSSIBLE TARGET FOR ACQUISITION BY ANOTHER ALTHOUGH ITS MANAGERS HAVE RESISTED SUCH OVERTURES IN THE PAST THOUGH AN INCREASING SHARE OF THE PHILADELPHIA EXCHANGE'S TOTAL BUSINESS COMES FROM ITS FOREIGN CURRENCY MARKET ITS STOCK BUSINESS HAS BEEN GROWING LATELY AS WELL MR GIORDANO SAID THROUGH SEPTEMBER THE PHILADELPHIA MARKET TRADED A RECORD 967799965 SHARES OF STOCK UP 15 FROM THE SAME PERIOD A YEAR AGO IN ITS CURRENCY OPTIONS MARKET VOLUME IS ALSO UP 15 TO 105 MILLION OPTIONS CONTRACTS 9311040115 931104 QVC AGAIN TALKS WITH PHONE FIRMS ABOUT PARAMOUNT NEW YORK QVC NETWORK INC HAS RESUMED TALKS WITH REGIONAL TELEPHONE COMPANIES INCLUDING BELLSOUTH CORP ABOUT BANKROLLING A SWEETENED BID FOR PARAMOUNT COMMUNICATIONS INC BOTH QVC AND BELLSOUTH DECLINED TO COMMMENT A PERSON CLOSE TO QVC SAID THE COMPANY IS MEETING WITH MANY DIFFERENT PEOPLE INCLUDING BELLSOUTH AND THERE MAY BE AN ANNOUNCEMENT AS EARLY AS TODAY QVC IS EXPECTED TO USE FUNDS FROM A NEW REGIONAL TELEPHONE COMPANY INVESTOR TO RAISE ITS 10 BILLION 80ASHARE BID FOR PARAMOUNT TO TOP VIACOM INC WHICH HAS A FRIENDLY MERGER SLATED WITH PARAMOUNT AT ROUGHLY THE SAME PRICE BELLSOUTH HAS EXPLORED MAKING A BID OF ITS OWN FOR PARAMOUNT BUT MIGHT MAKE AN INVESTMENT OF ABOUT 1 BILLION IN QVC AS A FALLBACK SOME ANALYST BELIEVE PARAMOUNT STOCK HAS FALLEN STEADILY THIS WEEK AS EACH DAY PASSED WITHOUT A BID FROM BELLSOUTH THE BIGGEST OBSTACLE TO A BELLSOUTH INVESTMENT IN QVC IS QVC'S TIE TO BELL ATLANTIC CORP A BELLSOUTH RIVAL THAT PLANS TO BUY LIBERTY MEDIA CORP WHICH OWNS 22 OF QVC SOME TRADERS HAVE SPECULATED BELLSOUTH MIGHT EVEN BUY OUT LIBERTY'S INTEREST IN QVC CUTTING QVC'S TIE TO CABLE MOGUL JOHN MALONE TARGET OF AN ANTITRUST SUIT BY VIACOM BARRY DILLER QVC'S CHAIRMAN ALREADY HAS FOUR OTHER INVESTORS THAT ARE CONTRIBUTING 500 MILLION EACH LIBERTY COMCAST CORP ADVANCE PUBLICATIONS INC AND COX ENTERPRISES INC MEANWHILE VIACOM SAID IT RECEIVED COMMITMENTS FROM BANKS FOR A 45 BILLION LOAN TO FINANCE PART OF ITS BID FOR PARAMOUNT VIACOM SAID THE LOAN INCLUDES A 1 BILLION BRIDGE LOAN THAT WILL ENABLE VIACOM TO ACQUIRE PARAMOUNT SHARES IF REGULATORY MATTERS DELAY NYNEX CORP'S PLANNED 12 BILLION INVESTMENT IN VIACOM MORGAN GUARANTY TRUST CO OF NEW YORK CITICORP'S CITIBANK AND BANK OF NEW YORK CO'S BANK OF NEW YORK ARE MANAGING AGENTS FOR THE VIACOM LOAN 9311040114 931104 SMALL STOCK FOCUS STOCKS FALL SHARPLY FROM RECORD LEVEL AMID PROFITTAKING DECLINE IN BONDS BY LARRY BAUMAN AND THOMAS GRANAHAN SPECIAL TO THE WALL STREET JOURNAL NEW YORK SMALLCOMPANY STOCK PRICES FELL SHARPLY FROM TUESDAY'S RECORD CLOSING LEVEL WITH THE DROP FUELED BY PROFITTAKING AND BIG DECLINES IN NEW YORK STOCK EXCHANGE ISSUES AND THE BOND MARKET THE RUSSELL 2000 INDEX WHICH TRACKS THE MOVEMENT OF SMALLCAPITALIZATION STOCKS TRADED ON THE NASDAQ STOCK MARKET AND THE OTHER MAJOR EXCHANGES WAS DOWN 306 OR 118 AT 25711 THE NASDAQ COMPOSITE INDEX WAS DOWN 1271 OR 162 AT 77295 AND THE BIG BOARD COMPOSITE WAS DOWN 297 OR 114 AT 25650 THE DOW JONES INDUSTRIAL AVERAGE WHICH CLOSED AT 366187 WAS DOWN 3577 OR 097 NASDAQ DECLINERS OUTSTRIPPED GAINERS 1989 TO 1056 AND VOLUME WAS A HEAVY 348807000 SHARES COMPARED WITH 324663000 TUESDAY THERE WAS A SELLOFF RIGHT ACROSS THE BOARD THAT WAS EXACERBATED WHEN COMPUTERDRIVEN SELL PROGRAMS KICKED IN DURING THE AFTERNOON SAID ROBERT ANTOLINI HEAD OF OVERTHECOUNTER TRADING AT DONALDSON LUFKIN & JENRETTE HE SAID MANY OF THE LARGER TECHNOLOGY COMPANIES AS WELL AS OTHER STOCKS THAT HAD POSTED STRONG GAINS RECENTLY WERE THE ONES INITIALLY HIT BY THE WAVE OF PROFITTAKING THAT IN TURN DRAGGED EVERYTHING ELSE DOWN AMONG SMALLCAP STOCKS GAMMA BIOLOGICALS SOARED 22 OR 11/16 TO 3 13/16 THE COMPANY IN HOUSTON WHICH TRADES ON THE AMERICAN STOCK EXCHANGE POSTED SECONDQUARTER NET INCOME OF EIGHT CENTS A SHARE COMPARED WITH ONE CENT IN THE YEAREARLIER PERIOD THE MAKER OF INSTRUMENTATION USED FOR INVITRO DIAGNOSTIC TESTING SAID A NEARLY 16 INCREASE IN EXPORT SALES IN THE QUARTER CONTRIBUTED TO IMPROVED EARNINGS GREENWICH PHARMACEUTICALS SHARES LEAPED 3/4 OR 30 TO 3 1/4 ON HEAVY VOLUME AFTER THE COMPANY REPORTED A THIRDQUARTER LOSS OF 14 CENTS A SHARE IN THE YEAREARLIER PERIOD GREENWICH LOST 19 CENTS ANALYSTS HAD EXPECTED THE COMPANY TO LOSE 15 CENTS SHARES OF COMPUTER LANGUAGE RESEARCH GAINED 1/2 OR 83 TO 6 1/2 THE COMPANY IN CARROLLTON TEXAS EARNED FIVE CENTS A SHARE IN THE THIRD QUARTER COMPARED WITH A LOSS OF 11 CENTS A YEAR EARLIER THE LATEST RESULTS WERE A PENNY LESS THAN ANALYSTS HAD BEEN EXPECTING ACCORDING TO IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM INTERLEAF INC WHICH DESIGNS AND MARKETS SOFTWARE USED IN THE CREATION AND MANAGEMENT OF LARGE DOCUMENTS ENTERED INTO AN AGREEMENT WITH DIGITAL EQUIPMENT THAT GIVES DIGITAL WORLDWIDE DISTRIBUTION RIGHTS FOR ALL INTERLEAF SOFTWARE THE AGREEMENT WILL MAKE AVAILABLE INTERLEAF'S WORLDVIEW SOFTWARE FOR ONLINE INFORMATION VIEWING ON ALL DIGITAL PLATFORMS INTERLEAF SHARES RESPONDED BY GAINING 196 OR 1 1/8 TO 6 7/8 BALLY GAMING'S STOCK FELL 2 7/8 TO 18 THE COMPANY FILED A SECONDARY SHELF OFFERING FOR 16 MILLION COMMON SHARES AND WARRANTS TO BUY 12 MILLION COMMON SHARES EACH WARRANT ENTITLES THE HOLDER TO BUY ONE COMMON SHARE AT AN EXERCISE PRICE OF 1250 A SHARE JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH CORP SAID THE LOSSES SEEN YESTERDAY WERE DUE IN LARGE PART TO SKITTISHNESS OVER BONDS WHICH HE SAID HAD A PARTICULARLY NEGATIVE IMPACT ON UTILITY AND FINANCIAL STOCKS OF BOTH THE LARGE AND SMALL VARIETY HE NOTES THAT THE NASDAQ INDEX IS HEAVILY WEIGHTED TOWARD FINANCIAL COMPANIES BUT MR SOLLOWAY SAYS THAT THE MAIN FACTOR DRIVING RATES HIGHER ARE THE RECENT SIGNS OF A PICKUP IN ECONOMIC ACTIVITY AND ALTHOUGH THAT TENDS TO HURT BOND PRICES IT EVENTUALLY WILL BEGIN TO HAVE A BULLISH IMPACT ON STOCKS STOCKS IN GENERAL WILL OVERCOME THIS SELLOFF AND REACH NEW HIGHS IN THE MONTHS AHEAD AS THE ECONOMY REBOUNDS MOREOVER HE SAID THAT SIGNS OF ECONOMIC STRENGTH WILL TEND TO BOLSTER CYCLICAL STOCKS THIS IS NOT THE DEATH KNELL TO THE BULL MARKET MR SOLLOWAY SAID BUT HE DOES CONTEND THAT THE NATURE OF THE BULL MARKET IS CHANGING AND THAT THE MARKET'S LEADERSHIP WILL SHIFT HE SAID THAT ALTHOUGH AN IMPROVING ECONOMY WILL CONTINUE TO HELP THE RECENT HIGH FLYERS SUCH AS TECHNOLOGY AND TELECOMMUNICATIONS ISSUES BANK AND OTHER INTERESTSENSITIVE STOCKS WILL LOSE MUCH OF THEIR LUSTER 9311040113 931104 WEDNESDAY'S MARKETS STOCKS TUMBLE AS LONGTERM BONDS SLUMP BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS TUMBLED AS SKITTISH INVESTORS FEARFUL THAT INTEREST RATES ARE LOCKED IN AN UPWARD SPIRAL BAILED OUT OF UTILITY AND FINANCIAL STOCKS LONGTERM BONDS SLUMPED FOR THE FOURTHSTRAIGHT DAY AND THE DOLLAR FELL BATTERED BY A LATE BLAST OF COMPUTERGUIDED PROGRAM SELLING THE DOW JONES INDUSTRIAL AVERAGE SANK 3577 POINTS TO 366187 IN THE YEAR'S SIXTHHEAVIEST VOLUME IT WAS THE BIGGEST ONEDAY SELLOFF IN THE INDUSTRIAL AVERAGE SINCE SEPT 21 TAKING THE INDEX OF 30 INDUSTRIAL STOCKS TO ITS LOWEST CLOSE IN NEARLY TWO WEEKS STANDARD & POOR'S 500STOCK INDEX ALSO SANK FALLING 542 POINTS TO 46302 AND THE NASDAQ COMPOSITE INDEX PLUMMETED 1271 TO 77295 ITS BIGGEST DROP SINCE OCT 19 THE STOCK MARKET IS AT SOMEWHAT OF A CROSSROADS SAID GAIL DUDACK STOCK STRATEGIST AT SG WARBURG THE GOOD ECONOMIC NEWS HAS BEEN INSPIRING BUT THE FEAR THAT INTEREST RATES ARE AT A TROUGH AND ARE HEADING HIGHER HAS BEEN NEGATIVE MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAYS STOCK INVESTORS ARE STARTLED BY THE CONTINUING SLUMP IN BOND PRICES I THINK INVESTORS ARE SORELY DISAPPOINTED THAT THE BOND MARKET HASN'T EVEN RALLIED A LITTLE BIT FROM ITS DECLINES THIS WEEK HE SAID INDEED EVEN THOUGH ECONOMISTS COULD OFFER FEW CONVINCING EXPLANATIONS FOR YESTERDAY'S BOND MARKET RETREAT THE SELLOFF IN LONGTERM BONDS WAS SHARP THE YIELD ON THE TREASURY'S 30YEAR BOND ROSE TO 610 FROM 606 TUESDAY A WEEK AGO THE GOVERNMENT BOND WAS YIELDING 584 THOUGH STOCKS STARTED THE DAY ON A MIXED NOTE A BREAK IN BONDS IN THE AFTERNOON SENT STOCKS REELING EXACERBATING THE DECLINE WAS A ROUND OF COMPUTERGUIDED PROGRAM SELLING ACCORDING TO LASZLO BIRINYI WHO HEADS A FINANCIAL CONSULTING FIRM THAT BEARS HIS NAME ONE KILLER PROGRAM HIT THE INDUSTRIALS AT ABOUT 3 PM EST EXTENDING THE LOSS TO MORE THAN 50 POINTS FROM ABOUT 20 POINTS THE HEAVY COMPUTERGUIDED SELLING TRIGGERED THE NEW YORK STOCK EXCHANGE'S 50POINT DOWNTICK RULE THAT LIMITS CERTAIN TYPES OF PROGRAM TRADING AFTER THE INDUSTRIAL AVERAGE FALLS 50 POINTS IMPLEMENTATION OF THAT RULE PAVED THE WAY FOR THE INDUSTRIAL AVERAGE TO STAGE A MODEST RECOVERY MR BIRINYI SAID THE SELLING WASN'T AS INTENSE AS THE MARKET BAROMETERS WOULD SUGGEST HE NOTES THAT AS OF 330 PM WHEN THE MARKET WAS DOWN 38 POINTS ABOUT 300 MILLION OF SELLING HAD TAKEN PLACE ORDINARILY HE SAID THAT AMOUNT OF SELLING WOULD ONLY HAVE COST THE INDUSTRIALS ABOUT 30 POINTS BUT HE SAID PROGRAM SELLING TENDS TO EXACERBATE DECLINES IT WASN'T A WONDERFUL DAY BUT IT WASN'T AS HORRIFIC A DAY AS THE INDEXES WOULD INDICATE HE SAID MEANWHILE MS DUDACK SAID TWO WARNING FLAGS THAT HAVE BEEN WAVING RECENTLY WERE PARTICULARLY VISIBLE YESTERDAY UTILITY STOCKS WHICH ARE USED BY SOME TECHNICAL ANALYSTS AS A LEADING INDICATOR OF INTEREST RATES HAVE BEAT A HASTY RETREAT WITH THE DOW JONES UTILITY AVERAGE PLUNGING 619 POINTS TO 23168 THE INDEX IS AT ITS LOWEST LEVEL SINCE FEB 18 I DO THINK THAT THE UTILITY AVERAGE IS A SERIOUS WARNING FLAG SHE SAID THE MARKET HASN'T HAD AS MUCH AS A 10 CORRECTION IN THREE YEARS AND THIS RALLY MAY LEAD US INTO THAT IN EARLY 1994 FINANCIAL STOCKS WHICH HAVE BEEN THE UNQUESTIONED LEADERS OF THE LATEST BULL MARKET STUMBLED BADLY A BROAD SPECTRUM OF FINANCIAL COMPANIES FROM BANKS TO BROKERAGE FIRMS TOOK IT ON THE CHIN CITICORP SLUMPED 1 1/8 TO 35 3/8 BANKERS TRUST 2 1/4 TO 77 1/8 MERRILL LYNCH 2 3/8 TO 90 7/8 AND MORGAN STANLEY 2 3/8 TO 74 1/8 YOU KNOW YOU ARE GETTING INTO THE LATER STAGES OF A BULL MARKET WHEN THE LEADERSHIP FALLS AND THE LAGGARDS RALLY MS DUDACK SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 059 TO 11303 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED JUST UNDER 341 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1529 ISSUES FELL AND 570 ROSE THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16925 MARKS AND 10768 YEN COMPARED WITH 17035 MARKS AND 10780 YEN TUESDAY 9311040112 931104 A NEW BREED OF MAYOR BY WILLIAM D EGGERS TUESDAY'S ELECTIONS PRODUCED THE LARGEST TURNOVER OF BIGCITY MAYORS IN THREE DECADES COME JANUARY NEW MAYORS WILL TAKE OVER IN NEW YORK DETROIT ATLANTA BOSTON BUFFALO MIAMI AND MINNEAPOLIS AMONG MANY OTHER CITIES JUST AS IMPORTANT A GENERATION OF HIGHPROFILE MAYORS INCLUDING DETROIT'S COLEMAN YOUNG ATLANTA'S MAYNARD JACKSON AND NEW YORK'S DAVID DINKINS WILL BE LEAVING OFFICE DUE TO RETIREMENT OR DEFEAT THESE FIGURES EPITOMIZED THE OLD SCHOOL OF LIBERAL BIGCITY MANAGEMENT EVERY SOCIAL WOE CALLED FOR A NEW GOVERNMENT PROGRAM AND EVERY BUDGET DEFICIT DEMANDED A TAX INCREASE THOSE DAYS ARE OVER THE ELECTIONS IN RECENT YEARS OF NONONSENSE BUSINESSMINDED MAYORS LIKE LOS ANGELES'S RICHARD RIORDAN CLEVELAND'S MICHAEL WHITE AND HOUSTON'S BOB LANIER NOT TO MENTION JERSEY CITY'S BRET SCHUNDLER AND INDIANAPOLIS'S STEPHEN GOLDSMITH DEMONSTRATE THAT THE POLITICS OF TAX SPEND AND COMPLAIN HAVE RUN THEIR COURSE A NEW BREED OF BABYBOOM MAYORS INSPIRED BY THE SUCCESSFUL STREAMLINING OF AMERICAN BUSINESS ARE POISED TO TRANSFORM BIGCITY GOVERNMENT BY RIGHTSIZING CITY HALL RIGHTSIZING MEANS ASKING QUESTIONS THAT SUCCESSFUL COMPANIES REGULARLY ASK OF THEMSELVES IF WE WERE NOT DOING THIS ALREADY WOULD WE START IS THIS ACTIVITY CENTRAL TO OUR MISSION IF WE WERE TO DESIGN THIS ORGANIZATION FROM SCRATCH GIVEN NEW TECHNOLOGY WHAT WOULD IT LOOK LIKE A ROADMAP TO RIGHTSIZING CITY HALL INCLUDES THESE FIVE KEY STRATEGIES COMPETITION OPENING UP CITY HALL TO THE COMPETITIVE PROCESS MUST BE THE FUNDAMENTAL ASPECT OF CHANGE SAYS MR GOLDSMITH A REPUBLICAN SINCE TAKING OFFICE IN JANUARY 1992 HE HAS SHIFTED MORE THAN 50 OF INDIANAPOLIS'S GOVERNMENT SERVICES INTO THE MARKETPLACE BY MAKING CITY DEPARTMENTS COMPETE WITH PRIVATE FIRMS TO DELIVER PUBLIC SERVICES SAVINGS 20 MILLION ANNUALLY PHILADELPHIA MAYOR EDWARD RENDELL A DEMOCRAT IS ALSO OPENING UP SERVICES TO COMPETITION COST SAVINGS ARE AVERAGING 40 TO 50 PER SERVICE MOREOVER THE THREAT OF PRIVATIZATION IS HAVING A RIPPLE EFFECT BOOSTING PUBLICSECTOR PRODUCTIVITY THE KNOWLEDGE THAT YOUR DEPARTMENT CAN BE BID OUT SAYS MR RENDELL IS AN ENORMOUS MOTIVATING FACTOR PERFORMANCEBASED BUDGETING GOVERNMENT TYPICALLY REWARDS MANAGERS FOR POOR PERFORMANCE IF STUDENT TEST SCORES GO DOWN THE SCHOOLS GET MORE MONEY POOR OUTCOMES LEAD TO MORE INPUTS UNDER DEMOCRATIC MAYOR JOHN NORQUIST MILWAUKEE IS CHANGING THESE PERVERSE INCENTIVES BY OVERHAULING THE ANNUAL BUDGET PROCESS MILWAUKEE'S NEW BUDGET IS PERFORMANCEBASED SUCCESS IS MEASURED ACCORDING TO OUTCOMES NOT INPUTS MANAGERS SUBMIT FIVE STRATEGIC OBJECTIVES AND ARE HELD ACCOUNTABLE FOR ACHIEVING THEM THE ROAD MAINTENANCE DEPARTMENT IS JUDGED ACCORDING TO THE SMOOTHNESS OF THE STREETS FOR EXAMPLE NOT ACCORDING TO THE SIZE OF ITS BUDGET OR THE NUMBER OF ROAD CREWS IT MANAGES TO FIELD FOR PERFORMANCEBASED BUDGETING TO WORK OF COURSE MAYORS MUST HOLD THE LINE ON SPENDING BY FREEZING OR CAPPING DEPARTMENT BUDGETS CAPS ON SPENDING HELP CREATE A CULTURE WHERE MANAGERS MUST MAXIMIZE THEIR ACCOMPLISHMENTS RATHER THAN GROW THEIR BUDGETS CORE BUSINESS ACROSS THE COUNTRY CITY GOVERNMENTS OPERATE ALL KINDS OF ENTERPRISES FAR REMOVED FROM THE CENTRAL MISSION OF CITY HALL DOES THE CITY OF DALLAS REALLY NEED ITS OWN CLASSICAL RADIO STATION SHOULD NEW YORK BE OPERATING OFFTRACK BETTING PARLORS CITIES SHOULD CONCENTRATE ON DOING FEWER THINGS BETTER SOME NONCORE SERVICES SUCH AS ZOOS MUSEUMS AND SOME RECREATIONAL PROGRAMS CAN BE TURNED OVER TO NONPROFIT ORGANIZATIONS THE SAME DAY THAT NORFOLK VA GAVE ITS BOTANICAL GARDENS TO THE NONPROFIT NORFOLK BOTANICAL SOCIETY THE GARDENS RECEIVED THEIR FIRST 1 MILLION DONATION OTHER CITY ASSETS SUCH AS AIRPORTS WATER SYSTEMS AND PARKING GARAGES CAN BE SOLD TO THE HIGHEST BIDDER ALL OVER THE WORLD SUCH ENTERPRISES ARE BEING PRIVATIZED ALLOWING GOVERNMENTS TO TURN PHYSICAL CAPITAL INTO FINANCIAL CAPITAL REENGINEERING IN THE PRIVATE SECTOR COMPANIES ARE SAVING MILLIONS OF DOLLARS AND INCREASING PRODUCTIVITY BY RADICALLY REDESIGNING WORK PROCESSES THIS PRACTICE CALLED REENGINEERING HELPED UNION CARBIDE CUT 400 MILLION FROM ITS FIXED COSTS IN JUST THREE YEARS IF PURSUED AGGRESSIVELY REENGINEERING COULD LEAD TO DRAMATIC PRODUCTIVITY GAINS IN THE PUBLIC SECTOR FOR EXAMPLE INSTALLING DOCUMENTIMAGING TECHNOLOGY WHETHER IN THE COURTHOUSE POLICE STATION OR WELFARE OFFICE CAN ELIMINATE THE NEED TO STORE MILLIONS OF PAPER FILES DALLAS EXPECTS TO SAVE SPACE AND HANDLE COURT DOCUMENT REQUESTS WITH 10 FEWER EMPLOYEES THROUGH DOCUMENT IMAGING YEARLY SAVINGS 250000 UNDER DEMOCRATIC MAYOR RICHARD M DALEY CHICAGO IS ALSO REENGINEERING IN THE PUBLIC HEALTH DEPARTMENT FIELD NURSES PREVIOUSLY SPENT ABOUT HALF OF EACH DAY DOING PAPERWORK THE CITY RECENTLY BOUGHT HANDHELD COMPUTERS SIMILAR TO THOSE USED BY FEDERAL EXPRESS NURSES CAN NOW ENTER IN CODES ON SITE PERMITTING THEM TO SPEND MORE OF EACH DAY HELPING SICK PEOPLE RATHER THAN FILLING OUT FORMS REORGANIZING WORK STRUCTURES THE NEW MAYORS ALSO NEED TO REINVENT THEIR CITY'S ORGANIZATIONAL STRUCTURES IN MOST BIG CITIES THESE STRUCTURES ARE ARCHAIC THOUSANDS OF JOB CLASSIFICATIONS RIGID HIRING AND FIRING PROCEDURES LAYERS AND LAYERS OF MIDDLE MANAGEMENT STIFLING BUREAUCRATIC RULES AND REGULATIONS AND MYRIAD PROCEDURES THAT VIRTUALLY ENSURE THAT NO EMPLOYEE NO MATTER HOW INCOMPETENT WILL EVER BE FIRED UNTIL RECENTLY THE CITY OF CHARLOTTE WAS NO DIFFERENT THE CITY HAD FOUR EMPLOYEES WHO SPENT THEIR TIME DOING NOTHING BUT WRITING JOB CLASSIFICATIONS AND SOMEHOW EIGHT LAYERS OF MANAGEMENT WERE NEEDED JUST TO OVERSEE THE MAINTENANCE OF CITY STREETS NOT ANYMORE THE ORGANIZATION OF CHARLOTTE'S CITY HALL HAS BEEN FLATTENED THE CITY'S 24 DEPARTMENTS WERE MERGED INTO NINE KEY BUSINESSES ORGANIZED AROUND CITY HALL'S CORE ACTIVITIES AND AT LEAST ONE LAYER OF MANAGEMENT HAS BEEN CUT AWAY IN EACH DEPARTMENT DEPARTMENT DIRECTOR POSITIONS HAVE BEEN ELIMINATED AND REPLACED BY SOCALLED KEY BUSINESS EXECUTIVES WHO ARE BEING FREED FROM RED TAPE AND BUREAUCRATIC MICROMANAGING THUS BY FOCUSING ON PERFORMANCE CONCENTRATING ON ESSENTIAL TASKS AND REDESIGNING THE STRUCTURES AND MEANS BY WHICH THINGS GET DONE THE FRESHMAN CLASS OF MAYORS CAN JOIN THEIR COUNTERPARTS IN CITIES LIKE CHARLOTTE INDIANAPOLIS MILWAUKEE AND PHILADELPHIA IN EFFECTING THE MOST FUNDAMENTAL TRANSFORMATION OF CITY HALL SINCE THE PROGRESSIVE ERA USHERED OUT BOSS TWEED AND TAMMANY HALL MR EGGERS IS DIRECTOR OF THE PRIVATIZATION CENTER AT THE REASON FOUNDATION IN LOS ANGELES 9311040111 931104 PEPPERAND SALT WILL MAKE A SACRIFICE WHEN COMPUTERS ARE DOWN AND NEVER SUBSCRIBING 9311040110 931104 CLINTON STRIKES MEXICO DEALS ON TRADE PACT MOVE TO PROTECT INDUSTRIES IS AIMED AT WINNING 20 LAWMAKERS' SUPPORT BY BOB DAVIS AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION STRUCK A SERIES OF DEALS WITH THE MEXICAN GOVERNMENT TO HELP PROTECT SIX POLITICALLY SENSITIVE INDUSTRIES WHICH OFFICIALS HOPE MAY CONVINCE AS MANY AS 20 HOUSE MEMBERS TO VOTE FOR THE NORTH AMERICAN FREE TRADE AGREEMENT IN THE PAST HOWEVER THE ADMINISTRATION HAS BEEN OVEROPTIMISTIC ABOUT THE EFFECTS OF ITS DEAL MAKING A PLAN TO SET UP A 3 BILLION DEVELOPMENT BANK TO FUND PROJECTS RELATED TO NAFTA FOR INSTANCE SO FAR HAS BROUGHT ONLY A SINGLE VOTE INSTEAD OF THE HALF DOZEN THE CLINTON TEAM HAD BEEN SEEKING US TRADE REPRESENTATIVE MICKEY KANTOR SAID THAT AFTER NEGOTIATIONS LASTING UNTIL 4 AM YESTERDAY MEXICO AGREED TO MAKE CONCESSIONS THAT SEEK TO PROTECT US PRODUCERS OF SUGAR CITRUS PRODUCTS AND FRESH VEGETABLES FROM SURGES IN IMPORTS FROM MEXICO IN ADDITION HE SAID THE MEXICAN GOVERNMENT VOWED TO BEGIN NEGOTIATIONS TO QUICKEN THE PACE OF MEXICAN TARIFF REDUCTIONS ON FLAT GLASS WINE AND APPLIANCES AS SOON AS NAFTA TAKES EFFECT IF APPROVED BY CONGRESS NAFTA WOULD BECOME LAW ON JAN 1 1994 AND PHASE OUT TARIFFS BETWEEN THE US MEXICO AND CANADA OVER 15 YEARS IN ADDITION TO THOSE DEALS WHITE HOUSE AIDES SAY THEY ARE SCRAMBLING TO COMPLETE SPECIAL AGREEMENTS WITH MEXICO TO BENEFIT PEANUT GROWERS AS A WAY OF WOOING LAWMAKERS IN GEORGIA AND THE APPAREL AND TEXTILE INDUSTRIES WHICH ARE IMPORTANT TO LAWMAKERS IN THE SOUTHEAST PRESIDENT CLINTON ACKNOWLEDGED THAT THE ADMINISTRATION IS STILL SHORT ON VOTES TO PASS NAFTA BUT HE SAID WE'VE HAD A REAL MOVEMENT IN THE LAST 10 DAYS OR SO AND I THINK YOU'LL SEE MORE AND MORE PROGRESS IN THE NEXT FEW DAYS WHITE HOUSE AIDES SAID THEY NOW ESTIMATE THAT THEY HAVE ABOUT 190 HOUSE VOTES IN FAVOR OF NAFTA AFTER FOUR MORE HOUSE MEMBERS YESTERDAY DECLARED THEMSELVES IN SUPPORT INCLUDING DEMOCRATIC REPS NANCY PELOSI OF CALIFORNIA AND SONNY MONTGOMERY OF MISSISSIPPI THE AGREEMENTS WITH MEXICO OVER AGRICULTURAL PRODUCTS ARE PART OF A PACKAGE OF LEGISLATION REPORTS AND SIDE LETTERS THAT THE ADMINISTRATION TRANSMITTED TO CONGRESS YESTERDAY THE HOUSE IS SCHEDULED TO VOTE NOV 17 ON THE LEGISLATION WHICH WOULD CHANGE US LAW SO THAT IT IS CONSISTENT WITH NAFTA ON THE SUGAR ISSUE MEXICO AGREED TO CHANGES THAT WOULD MAKE IT HARDER FOR THAT COUNTRY TO EXPORT LARGE QUANTITIES OF SUGAR TO THE US UNDER NAFTA MEXICO IS LIMITED IN THE EARLY YEARS TO EXPORT 7258 TONS OF SUGAR ANNUALLY TO THE US OUT OF TOTAL US SUGAR IMPORTS OF ABOUT 12 MILLION TONS THAT EXPORT COULD GROW SUBSTANTIALLY HOWEVER IF MEXICO WERE ABLE TO PROVE IT WERE A NET SURPLUS PRODUCER OF SUGAR US SUGAR FARMERS FEARED THAT MEXICAN SOFTDRINK BOTTLERS WOULD SWITCH SWEETENERS FROM SUGAR TO CORN SYRUPTHEREBY MAKING MEXICO A NET PRODUCER TO ASSUAGE THOSE FEARS MEXICO AGREED THAT IT WOULDN'T USE CORNSYRUP PRODUCTION IN CALCULATING WHETHER IT WAS A NET PRODUCER JULIUS KATZ A FORMER US TRADE OFFICIAL WHO NEGOTIATED NAFTA SAID THE SUGAR INDUSTRY'S FEARS WERE OVERBLOWN BECAUSE IT DIDN'T TAKE INTO ACCOUNT THE HIGH COST OF IMPORTING CORN SYRUP TO MEXICO NEVERTHELESS THE SUGAR INDUSTRY PREYED ON THOSE FEARS AND AS MANY AS EIGHT LAWMAKERS SAID THEIR VOTE WOULD DEPEND ON GETTING THE ASSURANCES MR KANTOR OBTAINED ON CITRUS PRODUCTS MEXICO AGREED TO A SYSTEM OF TRACKING THE PRICE OF FROZEN ORANGEJUICE CONCENTRATE ON THE NEW YORK COMMODITY EXCHANGES IF THAT PRICE GENERALLY DROPS BELOW A FIVEYEAR AVERAGE FOR A CERTAIN LENGTH OF TIME THE US COULD REIMPOSE TARIFFS THAT WERE IN EFFECT BEFORE NAFTA ON FRESH VEGETABLES MAINLY TOMATOES AND PEPPERS GROWN DURING THE WINTER MONTHS MEXICO AGREED TO A US PLAN IN WHICH THE US INTERNATIONAL TRADE COMMISSION COULD MAKE AN EXPEDITED STUDY OF THE EFFECTS OF MEXICAN IMPORTS AND MAKE RECOMMENDATIONS FOR REINSTATING TARIFFS ADMINISTRATION AND AGRICULTURAL OFFICIALS SAID IT'S NOT CLEAR HOW MANY VOTES THE VEGETABLE AND CITRUS DEALS WILL CLINCH HOWEVER MOST OF THOSE PRODUCTS ARE PRODUCED IN FLORIDA WHERE MANY PRODUCERS ARE DEAD SET AGAINST NAFTA APART FROM THE DEALS WITH MEXICO MR KANTOR SAID THE ADMINISTRATION WOULD CONDUCT A BROAD REVIEW OF NAFTA'S ECONOMIC IMPACT ON JULY 1 1997 THE CONGRESSIONAL BUDGET OFFICE WAS TO DO THAT REVIEW ON A PROPOSAL BY SEN BILL BRADLEY D NJ BUT THE ADMINISTRATION TOOK OVER THE ASSIGNMENT AFTER HOUSE MEMBERS SAID THAT AN ADMINISTRATION REVIEW WOULD CARRY MORE WEIGHT AND THE ADMINISTRATION SETTLED ON A 150 INCREASE TO THE CURRENT 5 CUSTOMS TAX ON AIRLINE AND CRUISE TICKETS IN ORDER TO RAISE ABOUT 800 MILLION WHICH WOULD HELP REPLACE REVENUE LOST FROM CUTTING NAFTA TARIFFS THE ADMINISTRATION ORIGINALLY PROPOSED A 5 INCREASE BUT WHITTLED IT DOWN TO 150 BECAUSE OF REPUBLICAN OPPOSITION YESTERDAY THE ADMINISTRATION SAID IT WOULD ELIMINATE ALL OF THE INCREASE AFTER FOUR YEARS PRESIDENT CLINTON IN A SWITCH OF TACTICS TODAY PLANS TO TAKE HIS CASE FOR NAFTA DIRECTLY TO HIS CRITICS HE WILL TRAVEL TO A COMPUTER FACTORY IN LEXINGTON KY TO FIELD QUESTIONS FROM AREA WORKERS SOME OF WHOM ARE BELIEVED TO OPPOSE THE TRADE PACT IN THE PAST THE PRESIDENT HAS GENERALLY MADE HIS NAFTA PITCHES TO FRIENDLY AUDIENCES EVEN THOUGH HE HAS CRITICIZED OTHERS FOR PREACHING TO THE SAVED 9311040109 931104 TAXABLE MONEY FUNDS POST LITTLE CHANGE IN YIELDS FOR WEEK NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS WERE ONLY SLIGHTLY CHANGED IN THE WEEK ENDED TUESDAY IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS ROSE A BIT TO 269 FROM 267 IN THE LATEST WEEK ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS MONEY FUND REPORT IS PUBLISHED BY IBC/DONOGHUE INC A SUBSIDIARY OF IBC USA PUBLICATIONS INC ASSETS OF 622 TAXABLE FUNDS TWO MORE THAN THE PREVIOUS WEEK FELL BY 339 BILLION TO 47337 BILLION THE NEWSLETTER SAID INSTITUTIONAL INVESTORS ACCOUNTED FOR 195 BILLION OF THE OUTFLOW WHILE INDIVIDUAL INVESTORS TOOK OUT 144 BILLION THE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS CREPT UP TO 266 FROM 264 WHILE THE 30DAY SIMPLE YIELD REMAINED AT 265 THE 30DAY COMPOUND YIELD EASED TO 268 FROM 269 AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 64 DAYS ASSETS OF 329 TAXEXEMPT FUNDS ONE MORE THAN THE PREVIOUS WEEK DECREASED BY 722 MILLION TO 10321 BILLION ACCORDING TO THE NEWSLETTER THE TAXFREE FUNDS' AVERAGE PORTFOLIO MATURITY STAYED AT 68 DAYS 9311040108 931104 ECONOMY FIXEDRATE HOME MORTGAGES TOP 7 SUGGESTING RATES MAY HAVE BOTTOMED BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL RESIDENTIAL FIXEDRATE MORTGAGES HAVE JUMPED ABOVE 7 FOR THE FIRST TIME SINCE AUGUST PROMPTING SOME ANALYSTS TO ESTIMATE THAT HOMELOAN RATES MAY FINALLY HAVE BOTTOMED OUT MORTGAGE RATES STILL ARE AT A 25YEAR LOW BUT SIGNS THAT RATES ARE CREEPING BACK UP COULD SPARK A SHORTTERM RUSH BY CONSUMERS INTO REFINANCING AND HOME BUYING ANALYSTS SAY THE AVERAGE RATE ON A 30YEAR CONVENTIONAL MORTGAGE ROSE TO 716 YESTERDAY FROM 697 LAST WEEK ACCORDING TO A PRELIMINARY SURVEY OF LENDERS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGEPUBLISHING FIRM IT WAS THE THIRD CONSECUTIVE WEEKLY RISE FROM THE YEAR'S LOWEST RATE IN OCTOBER OF 683 ONEYEAR ADJUSTABLERATE MORTGAGES HAVE BEEN SLOWLY TRENDING DOWN ALTHOUGH AS OF YESTERDAY THEY HAD RISEN TO 423 FROM 414 A WEEK EARLIER ACCORDING TO THE SURVEY MORTGAGE LENDERS MEANWHILE REPORT CONTINUED BRISK ACTIVITY A WEEKLY INDEX OF APPLICATIONS BY THE MORTGAGE BANKERS ASSOCIATION IS MORE THAN TEN TIMES NORMAL LEVEL FOR REFINANCING AND UP 74 FOR HOME PURCHASES MARK ZANDI CHIEF ECONOMIST AT REGIONAL FINANCIAL ASSOCIATES INC A WEST CHESTER PA CONSULTING FIRM SAID THE MORTGAGE RATE RISE MAY JAR FENCESITTERS INTO HOME BUYING OR REFINANCING BUT COULD DAMP ACTIVITY IN THE LONG RUN IRONICALLY IT MIGHT PUSH MORE PEOPLE INTO THE MARKET HE SAID PEOPLE HAD BEEN WAITING TO SEE WHERE THE BOTTOM WAS YOU MAY SEE A PICKUP IN RESALE ACTIVITY OF COURSE IF IT'S SUSTAINED THAT MAY TAKE SOME OF THE STEAM OUT WITH THE ECONOMY IMPROVING MORTGAGE RATES SHOULD CONTINUE TO RISE HE SAID BUT LOW INFLATION IS EXPECTED TO CHECK THE PACE THE DAYS OF 7 MORTGAGE RATES ARE OVER MR ZANDI SAID WE MAY SEE MORTGAGE RATES PUSH BACK TO 725 OR 730 PRETTY QUICKLY BUT I DON'T THINK THEY'RE GOING TO RISE TOO FAR WARREN LASKO EXECUTIVE VICE PRESIDENT AT THE MORTGAGE BANKERS ASSOCIATION AGREED THAT MORTGAGE RATES WERE UNLIKELY TO DROP FURTHER MEANING THAT HOME SALES COULD CONTINUE TO BOOM BUT THAT REFINANCING ACTIVITY WOULD SKID WE CERTAINLY SEEM TO HAVE BOTTOMED OUT HE SAID REFINANCING APPLICATIONS ARE HEAVY IN THE PIPELINE BUT NEW APPLICATIONS ARE LIKELY TO DROP OFF THE CLIFF IN THE NEXT FEW WEEKS WE'VE SEEN A GRADUAL TRAILING OFF OF REFINANCING BUT THEY ARE STILL OVER HALF OF MORTGAGE ACTIVITY JONATHAN E GRAY AN ANALYST FOR SANFORD C BERNSTEIN & CO SAID THAT MORTGAGE RATES AGAIN COULD DIP BELOW 7 IF THE ECONOMY REMAINED ABOUT THE SAME AND THE FEDERAL RESERVE BOARD DOESN'T TIGHTEN MONETARY POLICY HE ESTIMATES THAT IF MORTGAGE RATES HOLD STEADY THE CURRENT BOOM IN REFINANCING WILL PLUNGE 80 DURING THE NEXT 24 MONTHS EVERYONE WHO IS GOING TO REFINANCE WILL REFINANCE IN THE NEXT TWO YEARS HE SAID 9311040107 931104 BANC ONE TO BUY KENTUCKY BANK FOR 842 MILLION ACCORD FOR LIBERTY NATIONAL IS LATEST ACQUISITION BY OHIOBASED CONCERN BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BANC ONE CORP IN A MOVE THAT WILL GIVE IT THE NO 1 MARKETSHARE SPOT IN KENTUCKY AGREED TO ACQUIRE LIBERTY NATIONAL BANCORP INC OF LOUISVILLE IN A STOCK SWAP WITH A CURRENT INDICATED VALUE OF ABOUT 842 MILLION WHILE SOME ANALYSTS PRAISED THE ACQUISITION OTHERS EXPRESSED RENEWED CONCERNS THAT BANC ONE WHICH IS BASED IN COLUMBUS OHIO MAY BE MAKING TOO MANY ACQUISITIONS TOO FAST THEY SAID SUCH WORRIES HAVE CONTRIBUTED TO A 20 DECLINE IN BANC ONE'S STOCK PRICE OVER THE PAST SIX MONTHS A NUMBER OF ANALYSTS ALSO QUESTIONED THE WISDOM OF A LARGE INVESTMENT IN THE KENTUCKY ECONOMY WHICH WHILE IMPROVING IS HARDLY ROBUST THEY POINTED OUT THAT BANC ONE'S INITIAL KENTUCKY ACQUISITION TWO YEARS AGO FIRST SECURITY CORP OF LEXINGTON WAS QUITE DIFFICULT WITH MANY BAD LOANS AND A TOP MANAGEMENT THAT HAD TO BE REPLACED THE LIBERTY NATIONAL ACQUISITION MUST BE APPROVED BY LIBERTY NATIONAL SHAREHOLDERS AND FEDERAL REGULATORS THERE STILL ARE QUESTIONS ABOUT BANC ONE'S ACQUISITION STRATEGIES THIS IS NOT THE TIME I'D LIKE TO SEE THEM FEEDING THOSE CONCERNS SAID NANCY BUSH AN ANALYST WITH BROWN BROTHERS HARRIMAN & CO WHO RATES THE STOCK A BUY JOHN B MCCOY BANC ONE'S CHAIRMAN SAID OF THESE CONCERNS I BEG TO DIFFER MR MCCOY DESCRIBED LIBERTY NATIONAL AS A HEALTHY BANK THAT DOMINATES LEXINGTON AND CONTROLS 40 OF RETAIL LOANS IN LOUISVILLE HE SAID THAT WITH 47 BILLION IN ASSETS LIBERTY NATIONAL REPRESENTS A MERE 6 OF BANC ONE'S TOTAL 765 BILLION IN ASSETS MR MCCOY ALSO SAID THAT KENTUCKY'S ECONOMY IS BECOMING MORE DIVERSE AND CALLED IT A REAL TYPICAL BANC ONE MARKET MR MCCOY SAID THE WEAKNESS IN BANC ONE'S STOCK REFLECTS GENERAL CONCERNS ABOUT BANK STOCKS RATHER THAN PARTICULAR ONES ABOUT THE COMPANY'S STRATEGY INDEED MOST BANK STOCKS WERE DOWN YESTERDAY ON THE NEW YORK STOCK EXCHANGE BANC ONE'S STOCK CLOSED AT 36625 DOWN 875 CENTS ON THE NASDAQ STOCK MARKET LIBERTY NATIONAL CLOSED AT 29375 UP 1375 OR 49 BANC ONE SAID THE ACQUISITION WILL ADD TO EARNINGS IN THE SECOND HALF OF 1994 AS A RESULT OF COST REDUCTIONS AND INCREASED REVENUE THE COMPANY TOLD ANALYSTS THAT IT NEEDS ONLY 14 MILLION IN SAVINGS AND NEW REVENUE SOURCES TO BOOST EARNINGS BUT BELIEVES IT CAN ACHIEVE AS MUCH AS 50 MILLION OF THAT AMOUNT 36 MILLION WILL COME FROM ADDITIONAL REVENUE AS BANC ONE BRINGS ITS STRONG CREDITCARD AND HOMEEQUITY BUSINESSES TO LIBERTY NATIONAL WHICH HAS LIMITED PRESENCE IN THOSE AREAS BANC ONE HAS BEEN THE FOURTHLARGEST BANK IN KENTUCKY WITH 17 BILLION IN ASSETS BEHIND NO 1 PNC BANK CORP NATIONAL CITY CORP AND LIBERTY NATIONAL WITH LIBERTY NATIONAL BANC ONE WILL BE NO 1 WITH ABOUT 65 BILLION IN ASSETS TRAILED BY PNC BASED IN PITTSBURGH AND NATIONAL CITY BASED IN CLEVELAND PNC HOWEVER WILL CONTINUE TO DOMINATE THE LOUISVILLE MARKET IT'LL BE AN INTERESTING HORSE RACE IN KENTUCKY A PNC MANAGER SAID LIBERTY NATIONAL GIVES BANC ONE A BOOST IN THE VICINITY OF CINCINNATI WHICH IS JUST OVER THE KENTUCKYOHIO BORDER MR MCCOY ISN'T SHY ABOUT BANC ONE'S DESIRE TO EXPAND ITS MINIMAL CINCINNATI PRESENCE BEFORE LIBERTY NATIONAL BANC ONE'S BIGGEST ACQUISITION AGREEMENT IN 1993 WAS FIRSTIER FINANCIAL INC OMAHA FOR 712 MILLION ALSO THIS YEAR IT COMPLETED THE ACQUISITIONS OF VALLEY NATIONAL CORP PHOENIX FOR 15 BILLION KEY CENTURION BANCSHARES INC CHARLESTON WVA FOR 600 MILLION AND FIRST COMMUNITY BANCORP ROCKFORD ILL FOR 142 MILLION THE 842 MILLION INDICATED VALUE OF THE TRANSACTION WAS BASED ON TUESDAY'S BANC ONE CLOSING PRICE OF 3750 A SHARE THE FINAL AMOUNT WILL HINGE ON WHERE BANC ONE TRADES PRIOR TO THE TRANSACTION'S CLOSING HOWEVER A SPOKESMAN FOR LIBERTY NATIONAL SAID THE TALKS BETWEEN THE TWO COMPANIES TOOK PLACE WHEN BANC ONE WAS TRADING IN THE LOW 40S HE NOTED THE STOCK'S DECLINE IN PRICE AND SAID THE AGREEMENT STATES THAT IF BANC ONE IS TRADING BETWEEN 35 A SHARE AND 38 A SHARE BEFORE THE TRANSACTION IS COMPLETED BANC ONE MUST INCREASE ITS OFFER OR LIBERTY NATIONAL CAN BACK OUT 9311040106 931104 INTERNATIONAL SEC TRIES TO EASE DISCLOSURE RULES FOR FOREIGN FIRMS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON COMING SOON TO A STOCK EXCHANGE NEAR YOU MORE FOREIGN COMPANIES THAT'S WHAT THE SECURITIES AND EXCHANGE COMMISSION HOPES WILL HAPPEN UNDER A BATCH OF RULE CHANGES THAT ARE INTENDED TO EASE DISCLOSURE REQUIREMENTS AND FINANCIAL BURDENS FOR FOREIGN COMPANIES SEEKING TO TAP THE US MARKET THE REAL WINNERS IN THIS WILL BE US INVESTORS SAID SEC COMMISSIONER J CARTER BEESE JR THE RULE CHANGES COVER SUCH BROAD AREAS AS ACCOUNTING STANDARDS FINANCIAL STATEMENTS AND REPORTING PERIODS THAT ARE PECULIAR TO FOREIGN COMPANIES AND SIMPLER PROCESSES FOR REGISTERING STOCK AND DEBT OFFERINGS ALL OF THE CHANGES ARE INTENDED TO ALLOW FOREIGN COMPANIES TO OPERATE UNDER THE EXISTING RULES FOR US COMPANIES OR CLOSELY COMPARABLE RULES AS IN THE ACCOUNTING PRINCIPLES THE SEC HAS BEEN WORKING ON THE RULE CHANGES FOR SOME TIME AND UNDER CONSIDERABLE PRESSURE FROM THE US STOCK EXCHANGES WHICH ARE CONCERNED ABOUT US INVESTORS' DOLLARS FLOWING OVERSEAS TO PURCHASE FOREIGN STOCKS THE SEC'S INSISTENCE THAT FOREIGN COMPANIES STRICTLY FOLLOW US ACCOUNTING AND DISCLOSURE REQUIREMENTS DIDN'T BUDGE UNTIL A DEAL WAS STRUCK IN MARCH WITH DAIMLERBENZ AG AND THE BIG GERMAN AUTO MAKER WAS ABLE TO LIST ON THE NEW YORK STOCK EXCHANGE THE SUCCESS THAT THE COMMISSION HAD WITH DAIMLER BROKE THE ICE SAID BRANDON BECKER DIRECTOR OF MARKET REGULATION FOR THE SEC THE ISSUE WOULD STILL BE HERE BUT WE WOULDN'T HAVE THE FRAMEWORK IN PLACE THAT WAS DESIGNED FOR DAIMLER AMONG THE CHANGES PROPOSED BY THE COMMISSION IS THE ACCEPTANCE OF INTERNATIONAL AUDITING STANDARDS FOR FOREIGN COMPANIES' CASHFLOW STATEMENTS SEC CHAIRMAN ARTHUR LEVITT SAID THE PROPOSED ACCEPTANCE OF INTERNATIONAL STANDARDS COMPROMISES NONE OF THE STANDARDS APPLIED TO US COMPANIES THE SEC ALSO PROPOSED ALLOWING FOREIGN COMPANIES TO USE A REGISTRATION PROCESS THAT WAS BROADENED FOR US COMPANIES A LITTLE MORE THAN A YEAR AGO THE PROCESS KNOWN AS SHELF REGISTRATION ALLOWS A COMPANY TO REGISTER ITS INTENT TO OFFER STOCK WELL IN ADVANCE OF THE TIME IT EXPECTS TO ISSUE THE SECURITIES THE PROVISION WAS BROADENED TO ALLOW SHELF REGISTRATION OF STOCK DEBT AND OTHER SECURITIES IN ADDITION THE SEC PROPOSED THAT SMALLER FOREIGN COMPANIES BE ALLOWED TO USE THE SAME SHORTFORM PROSPECTUSES PERMITTED FOR US COMPANIES THE SEC WILL ACCEPT PUBLIC COMMENTS ON THE PROPOSALS UNTIL THE END OF JANUARY THE AGENCY ADOPTED RULES TO ACCOMMODATE FOREIGN REPORTING REQUIREMENTS WHICH TYPICALLY DON'T INCLUDE QUARTERLY REPORTING AS IS REQUIRED IN THE US THE CHANGE WILL PERMIT FOREIGN COMPANIES TO OFFER STOCK IN THE US WITHOUT HAVING TO WAIT FOR THEIR NEXT REPORTING PERIOD SO THAT FRESH FINANCIAL DATA CAN BE INCLUDED IN PROSPECTUSES THE AGENCY ALSO EXPANDED THE ACCESSIBILITY OF US MARKETS TO CANADIAN ISSUERS WHO MEET CANADIAN REPORTING REQUIREMENTS AND INSTITUTED BROADER EXEMPTIONS TO TRADINGPRACTICES RULES THAT WILL BE APPLIED TO FOREIGN COMPANIES ON A COUNTRYBYCOUNTRY BASIS 9311040105 931104 PRUDENTIAL SETS A PRIVATE SALE FOR MALL UNIT INSURANCE FIRM SCRAPS PLANS FOR A PUBLIC OFFERING DEAL PUT AT 870 MILLION BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA SCRAPPED PLANS TO SELL ITS CENTERMARK PROPERTIES INC MALL SUBSIDIARY TO THE PUBLIC STRIKING A DEAL INSTEAD TO SELL IT TO AN INVESTMENT GROUP LED BY ANOTHER MALL COMPANY FOR ABOUT 870 MILLION IN CASH AND DEBT THE SALE WILL ALLOW PRUDENTIAL TO CUT ITS REALESTATE EXPOSURE WITHOUT RESORTING TO A PUBLIC OFFERING AT A TIME WHEN A WAVE OF MALL DEVELOPERS INCLUDING MELVIN SIMON AND EDWARD DEBARTOLO ARE PLANNING PUBLIC OFFERINGS OF NEW REALESTATE INVESTMENT TRUSTS PRUDENTIAL'S DECISION TO ABANDON A PUBLIC SALE OF ITS SUBSIDIARY IS A COMMENTARY ON HOW CROWDED THAT MARKET IS GETTING SAID KIDDER PEABODY & CO ANALYST BRUCE GARRISON THE REIT MARKET IS VERY TIGHT RIGHT NOW HE SAID AND A PRIVATE SALE IS A SURER WAY TO GET THE DESIRED PRICE GENERAL GROWTH PROPERTIES A DES MOINES IOWA MALL COMPANY THAT WENT PUBLIC IN APRIL IS HEADING UP THE CENTERMARK BUYING GROUP THAT INCLUDES WESTFIELD HOLDINGS LTD AN AUSTRALIAN MALL COMPANY THAT OWNS SEVEN AMERICAN PROPERTIES AND WHITEHALL REAL ESTATE LIMITED PARTNERSHIP III A LIMITED PARTNERSHIP FORMED BY INVESTMENT BANK GOLDMAN SACHS & CO ST LOUISBASED CENTERMARK OWNS 16 LARGE REGIONAL MALLS THREE LARGE SHOPPING CENTERS AND SEVERAL OTHER REALESTATE ASSETS WITH MANY OF THE PROPERTIES IN CALIFORNIA AND MISSOURI MORE THAN 25 REALESTATE COMPANIES HAVE GONE PUBLIC THIS YEAR NEARLY EVERY MAJOR MALL DEVELOPER EITHER HAS DONE SO OR IS PLANNING TO ALTHOUGH ANALYSTS SAY THERE IS STILL A WEALTH OF INVESTOR INTEREST IN THE OFFERINGS SOME BUYERS ARE BECOMING MORE DISCRIMINATING PARTICULARLY ABOUT SHOPPINGCENTER COMPANIES ANALYSTS WERE WATCHING THE PLANNED PRUDENTIAL OFFERING CLOSELY BECAUSE IT WAS THE FIRST MAJOR DEAL IN WHICH AN OWNER INTENDED TO CASH OUT TO SUCH A DEGREE NEWARK NJBASED PRUDENTIAL PLANNED TO RETAIN ONLY A 13 STAKE IN THE NEW COMPANY WHICH ANALYSTS PREDICTED COULD HURT THE PRICING OF THE PUBLIC OFFERING THE PRIVATE SALE WILL NET PRUDENTIAL ABOUT AS MUCH AS IT WAS HOPING TO REALIZE THROUGH ITS PUBLIC OFFERING ACCORDING TO SEVERAL PEOPLE FAMILIAR WITH THE DEAL ALTHOUGH MORE OF THE PROCEEDS WILL BE IN THE FORM OF DEBT TO BE PAID OVER TIME BY GENERAL GROWTH THE LETTER OF INTENT CALLS FOR GENERAL GROWTH TO CONTRIBUTE 200 MILLION IN CASH MUCH OF IT DRAWN FROM A BANK CREDIT LINE WESTFIELD TO CONTRIBUTE 200 MILLION AND WHITEHALL 100 MILLION THEIR EQUITY INTERESTS IN CENTERMARK WHICH WILL REMAIN A PRIVATE COMPANY WILL BE PROPORTIONATE TO THEIR INVESTMENTS THE NEW COMPANY WILL CARRY ABOUT 500 MILLION IN DEBT OF WHICH ABOUT 370 MILLION WILL BE NEWLY ISSUED AND EXISTING DEBT HELD BY PRUDENTIAL ITSELF IN ADDITION THE NEW COMPANY WILL ASSUME 130 MILLION OF EXISTING CENTERMARK DEBT HELD BY THIRD PARTIES WE DECIDED THIS WAS A BETTER ROUTE SAID A PRUDENTIAL SPOKESWOMAN IT'S A FIRM FAVORABLE PRICE AND IT'S NOT SUBJECT TO THE VAGARIES OF THE PUBLIC MARKET THE DEAL ALSO MAKES IT EASIER FOR PRUDENTIAL TO GET THE PROPERTIES OFF ITS BOOKS BY YEAR END WHEN NEW CAPITAL REQUIREMENTS GO INTO EFFECT THAT PENALIZE INSURANCE COMPANIES FOR OWNING REAL ESTATE ALTHOUGH THE OTHER MALL COMPANIES THAT HAVE GONE PUBLIC HAVE ALL ANNOUNCED THEIR INTENTION TO GROW THE CENTERMARK DEAL IS THE FIRST MAJOR ACQUISITION ANNOUNCED BY ANY OF THEM IT'S AN IMPORTANT THING FOR ALL MALL REITS TO ESTABLISH THAT THEY CAN GROW SAID FREDERICK CARR OF PENOBSCOT GROUP INC A BOSTON REALESTATE STOCK RESEARCH CONCERN THE GROWTH CLAIMS OF THE MALL REITS HE SAID HAD BEEN LOSING SOME CREDIBILITY GENERAL GROWTH CHAIRMAN MARTIN BUCKSBAUM SAID THE CASH GENERATED BY ITS INTEREST IN CENTERMARK WOULD INCREASE GENERAL GROWTH'S CASH FLOW ABOUT 10 AS WELL AS PROVIDE SUBSTANTIAL GROWTH POTENTIAL GENERAL GROWTH'S DEBT WILL RISE TO MORE THAN 55 FROM 40 OF TOTAL MARKET CAPITALIZATION AS A RESULT OF THE DEAL GENERAL GROWTH GAINED 1625 TO 2275 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY JON FOSHEIM A REIT ANALYST WITH GREEN STREET ADVISORS IN NEWPORT BEACH CALIF CAUTIONED THAT THE BOOST TO GENERAL GROWTH'S CASH FLOW COULD EVENTUALLY BE WIPED OUT BY RISING DEBT COSTS BECAUSE THE COMPANY USED FLOATINGRATE DEBT TO FINANCE THE PURCHASE WE DON'T THINK THAT AT ALL RESPONDED MR BUCKSBAUM 9311040104 931104 WHO'S NEWS HANSON TAPS BONHAM AS DEPUTY CHAIRMAN HINTING AT SUCCESSION LONDON HANSON PLC NAMED CHIEF EXECUTIVE OFFICER DEREK BONHAM TO BE DEPUTY CHAIRMAN FINALLY GIVING AN INDICATION OF WHO MAY BE THE SUCCESSOR TO CHAIRMAN LORD HANSON AT THE US ARM OF THE ANGLOAMERICAN INDUSTRIALMANAGEMENT CONCERN THE DEPUTY CHAIRMAN OF THE US BUSINESS DAVID CLARKE WAS NAMED A VICE CHAIRMAN OF THE GROUP THE FIRST AMERICAN TO HOLD THAT POST MR CLARKE'S PROMOTION COMES AS DEREK ROSLING 63 YEARS OLD STEPPED DOWN AS A VICE CHAIRMAN AHEAD OF HIS PLANNED RETIREMENT NEXT MAY AN ORDERLY SUCCESSION PLAN AT HANSON HAS CONCERNED ANALYSTS MANY HAVE CRITICIZED LORD HANSON 71 AND LORD WHITE 70 WHO HEAD THE UK AND US BUSINESSES RESPECTIVELY FOR HANGING ON TO THEIR POSITIONS AND FAILING TO ENSURE THAT THE COMPANY HAS A CADRE OF YOUNG EXECUTIVES ABLE TO RUN IT IN THE LAST SEVERAL YEARS MESSRS BONHAM AND CLARKE INCREASINGLY HAVE WORKED TOGETHER RUNNING THE DAYTODAY BUSINESS UNDER THE DIRECTION OF THE LORD HANSON AND LORD WHITE STILL LORD HANSON HAD DECLINED TO SAY WHO WOULD SUCCEED HIM TELLING THE 50YEAROLD MR BONHAM THAT HIS APPOINTMENT AS CHIEF EXECUTIVE IN APRIL 1992 DIDN'T NECESSARILY MEAN HE HAD RIGHTS TO THE TOP JOB LORD WHITE HAS INDICATED THAT MR CLARKE 52 IS HIS CHOICE AS SUCCESSOR LORD HANSON SAID IN 1991 THAT HE WOULD RETIRE IN 1997 MARTIN TAYLOR HANSON'S OTHER VICE CHAIRMAN SAID YESTERDAY'S ANNOUNCEMENT MAKES IT MUCH MORE LIKELY THAT MR BONHAM EVENTUALLY WILL BE TAPPED TO SUCCEED LORD HANSON 9311040103 931104 INTERNATIONAL SWISS BANK ANNOUNCES REORGANIZATION RISE IN NINEMONTH PROFIT ZURICH SWISS BANK CORP SAID OPERATING PROFIT WAS SUBSTANTIALLY HIGHER IN THE FIRST NINE MONTHS THE BIG SWISS BANK ALSO ANNOUNCED A REORGANIZATION OF ITS MANAGEMENT STRUCTURE THE THIRD QUARTER SAW CONTINUATION OF THE GOOD EARNINGS TREND SBC SAID OFFICIALS SUGGESTED THAT PROFIT FOR THE FULL YEAR WOULD RISE SIGNIFICANTLY SBC DOESN'T RELEASE QUARTERLY PROFIT FIGURES BUT IN THE FIRST HALF EARNINGS NEARLY DOUBLED TO 719 MILLION SWISS FRANCS 476 MILLION SBC SAID THAT IN THE FIRST THREE QUARTERS REVENUE FROM FINANCIAL AND TRADING OPERATIONS MORE THAN DOUBLED FROM A YEAR EARLIER UNDER A NEW STRUCTURE THAT TAKES EFFECT JAN 1 THE BANK WILL BE DIVIDED INTO TWO GROUPS THE DOMESTIC GROUP WILL BE RESPONSIBLE FOR ACTIVITIES IN SWITZERLAND TOGETHER WITH INTERNATIONAL PRIVATE AND TRUST BANKING WHILE THE INTERNATIONAL AND FINANCE GROUP WILL BE RESPONSIBLE FOR GLOBAL MARKETS THE DOMESTIC GROUP WILL BE HEADED BY ROLAND RASI WHO RECENTLY LEFT CS HOLDING WHERE HE WAS CHIEF EXECUTIVE OFFICER AT THE PRIVATE BANKING UNIT BANK LEU IN CHARGE OF THE GLOBAL GROUP WILL BE MARCEL OSPEL WHO BUILT UP SBC'S DERIVATIVES BUSINESS AND INVESTMENTBANKING SPECIALIST JOHANNES A DE GIER SBC ALSO IS CREATING A CORPORATE CENTER REPORTING TO CHIEF EXECUTIVE OFFICER GEORGES BLUM WITH A CHIEF FINANCIAL OFFICER AND A CHIEF CREDIT OFFICER 9311040102 931104 GLOBEX HEAD TO UNVEIL RESTRUCTURING PLAN BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO IN AN EFFORT TO SALVAGE THE FALTERING GLOBEX TRADING NETWORK ITS CHAIRMAN TODAY WILL UNVEIL A PLAN TO RADICALLY RESTRUCTURE THE SYSTEM AND TURN OVER ITS MANAGEMENT TO A WORLDWIDE CONSORTIUM OF FUTURES EXCHANGES THE PROPOSAL BY CHICAGO MERCANTILE EXCHANGE AND GLOBEX CHAIRMAN JOHN F SANDNER WHICH WAS OBTAINED BY THIS NEWSPAPER APPEARS TO BE A DIRECT ASSAULT ON THE CME'S PARTNER IN GLOBEX THE CHICAGO BOARD OF TRADE THE PROPOSAL SEEKS AMONG OTHER THINGS TO SCRAP THE JOINTVENTURE BOARD OF THE CME AND CBOT THAT NOW MANAGES GLOBEX GLOBEX THE BIGGEST AND MOST AMBITIOUS EFFORT TO CREATE A COMPUTERIZED GLOBALTRADING LINK BETWEEN FINANCIAL EXCHANGES THUS FAR HAS BEEN A DISAPPOINTMENT DEVELOPED BY REUTERS HOLDINGS PLC IN A PARTNERSHIP WITH CHICAGO'S TWO BIG FUTURES MARKETS IT HAS COST REUTERS MORE THAN 80 MILLION AND IS FAILING TO ATTRACT ENOUGH TRADING VOLUME TO PAY ITS OPERATING EXPENSES I'M TRYING TO SOLVE THE PROBLEMS WITH GLOBEX IN ONE FELL SWOOP MR SANDNER SAID THIS NEW MODEL TAKES A GIANT LEAP TOWARD REALIZING THE VISION OF GLOBEX BECAUSE IT CREATES A FERTILE ENVIRONMENT FOR OTHER INTERNATIONAL EXCHANGES TO JOIN THE SYSTEM MR SANDNER'S PLAN IS AN EFFORT TO RESHAPE GLOBEX BEFORE APRIL WHEN REUTERS HAS THE RIGHT TO TERMINATE THE SYSTEM IF ITS TRADING VOLUME IS LESS THAN 50000 FUTURES CONTRACTS A DAY AT PRESENT AVERAGE DAILY VOLUME ON GLOBEX IS ABOUT 28600 CONTRACTS MORE THAN 80 OF WHICH COMES FROM A PARIS FUTURES EXCHANGE THAT HAS LITTLE VOICE IN MANAGING THE SYSTEM THE PLAN WOULD GIVE EVERY EXCHANGE THAT JOINS GLOBEX AN EQUAL VOICE IN ITS MANAGEMENT GIVE EACH EXCHANGE THE EXCLUSIVE RIGHT TO LIST ITS BIGGEST FINANCIAL INSTRUMENTS ON THE SYSTEM AND REQUIRE SEAMLESS TRADING A BUZZWORD THAT MEANS EXCHANGES WOULD HAVE TO OFFER THEIR CONTRACTS ON GLOBEX FOR AT LEAST 12 HOURS A DAY WHEN THEIR OWN MARKETS ARE CLOSED MOST IMPORTANT MR SANDNER SAID IS THAT THE PLAN WOULD FORMALIZE THE PARTNER EXCHANGES' COMMITMENTS TO REUTERS BY REQUIRING THEM TO SIGN ONTO THE SYSTEM FOR AT LEAST THREE YEARS AND BY STRICTLY LIMITING THEIR USE OF LOCAL COMPUTERIZED TRADING SYSTEMS THAT COMPETE WITH GLOBEX THIS LAST PROVISION IS AMONG SEVERAL ASPECTS OF MR SANDNER'S PROPOSAL THAT CLASH WITH THE PLANS OF ITS GLOBEX PARTNER THE CHICAGO BOARD OF TRADE THE CBOT IS DEVELOPING PROJECT A A LOCAL ELECTRONICTRADING SYSTEM THAT POTENTIALLY COULD COMPETE WITH GLOBEX THE BOARD OF TRADE ALSO RUNS AN EVENINGTRADING SESSION THAT CONFLICTS WITH THE SEAMLESS TRADING PROVISION OF MR SANDNER'S PLAN TO PARTICIPATE IN GLOBEX UNDER MR SANDNER'S SCHEME THE CBOT LIKELY WOULD HAVE TO SCRAP BOTH OF THESE INITIATIVES PATRICK ARBOR CBOT CHAIRMAN SAID IN A STATEMENT THAT HIS EXCHANGE'S BOARD OF DIRECTORS WOULD REVIEW THE PROPOSAL THE CHICAGO BOARD OF TRADE IS COMMITTED TO THE FUTURE OF GLOBEX AND WE WILL SIT DOWN WITH THE CME TO COME UP WITH AN ACCEPTABLE AGREEMENT MR ARBOR SAID THE CBOT AND CME THE WORLD'S TWO BIGGEST FUTURES MARKETS ARE LONGTIME RIVALS AND THEIR PARTNERSHIP IN GLOBEX HAS BEEN ANYTHING BUT HARMONIOUS RECENTLY FOR INSTANCE THE TWO EXCHANGES SQUABBLED OVER WHETHER THE CBOT SHOULD ALLOW A LONDON FUTURES EXCHANGE TO LIST ITS GERMAN BONDFUTURES CONTRACT ON THE GLOBEX SYSTEM REUTERS AND THE CBOT HAVE CLASHED OVER OTHER ISSUES INCLUDING THE PROJECT A SYSTEM AND THE TERMS UNDER WHICH THE CBOT WILL LIST ITS BIG GRAIN FUTURES AND OPTIONS CONTRACTS ON GLOBEX LATE YESTERDAY THE CME'S BOARD OF DIRECTORS APPROVED MR SANDNER'S INITIATIVE FOR THE PLAN TO BECOME A REALITY REUTERS AND OTHER EXCHANGES WOULD ALSO HAVE TO FORMALLY APPROVE IT BUT NOT NECESSARILY THE BOARD OF TRADE EXECUTIVES AT REUTERS AND US AND FOREIGN FUTURES EXCHANGES REACTED POSITIVELY TO THE PLAN WE WELCOME PROPOSALS WHICH SHOW A COMMITMENT TO THE GLOBEX CONCEPT OF AN INTERNATIONAL TRADING SYSTEM FOR FUTURES AND OPTIONS PROVIDE VALUEADDED SERVICES AND ARE BENEFICIAL TO THE MARKETPLACE A REUTERS SPOKESMAN SAID THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE OR LIFFE IS CONSIDERING LISTING ITS HUGE CONTRACTS BASED ON GERMAN INTEREST RATES AND OTHER EUROPEAN FINANCIAL PRODUCTS ON GLOBEX LIFFE'S PARTICIPATION IS SEEN AS CRITICAL TO THE SYSTEM'S SURVIVAL LIFFE MANAGING DIRECTOR ROGER BARTON SAID THE PLAN IS AN EXTREMELY WELCOME INITIATIVE THAT IS LIKELY TO HELP LIFFE'S NEGOTIATIONS WITH GLOBEX GERARD PFWAUDEL CHAIRMAN OF PARISBASED MARCHE A TERME INTERNATIONAL DE FRANCE THE ONLY FOREIGNFUTURES EXCHANGE THAT NOW LISTS ITS CONTRACTS ON GLOBEX HAILED THE STEP AS EXACTLY THE KIND OF INITIATIVE WE ARE LOOKING FOR IN AN INTERVIEW MR PFWAUDEL SAID HIS EXCHANGE WHICH NOW ACCOUNTS FOR 85 OF ALL GLOBEX VOLUME IS LOOKING FOR THE KIND OF INCREASED GOVERNING ROLE THAT MR SANDNER'S PLAN WOULD PROVIDE 9311040101 931104 INTERNATIONAL MAN PLANS MORE JOB CUTS MUNICH GERMANY MAN AG A MAJOR GERMAN MACHINERY AND TRUCK MANUFACTURER SAID IT PLANS TO ELIMINATE AN ADDITIONAL 2000 TO 3000 JOBS IN THE FISCAL YEAR ENDING JUNE 30 1994 THE COMPANY SAID EARLIER THAT IT PLANNED TO TRIM ABOUT 3300 JOBS IN THE FISCAL YEAR MAN ALSO PREDICTED A 35 DECLINE IN GROUP SALES FOR THE FISCAL YEAR TO 183 BILLION MARKS 107 BILLION AND A MODERATE WEAKENING IN ITS PROFIT SALES IN THE FISCAL FIRST QUARTER FELL 12 TO 32 BILLION MARKS 9311040100 931104 WHO'S NEWS MATTEL PICKS ESKRIDGE TO BECOME PRESIDENT OF FISHERPRICE UNIT EL SEGUNDO CALIF MATTEL INC NAMED JAMES A ESKRIDGE TO BECOME PRESIDENT OF ITS FISHERPRICE INC UNIT AFTER THE TOYMAKER COMPLETES ITS PROPOSED 11 BILLION ACQUISITION OF FISHERPRICE MR ESKRIDGE 50 YEARS OLD IS A MATTEL EXECUTIVE VICE PRESIDENT AND ITS CHIEF FINANCIAL OFFICER FISHERPRICE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER RONALD J JACKSON SAID IN AUGUST WHEN THE ACQUISITION WAS ANNOUNCED THAT HE WOULD RELINQUISH THOSE POSTS AND JOIN MATTEL'S BOARD HE IS 49 MICHAEL G MCCAFFERTY A MATTEL SENIOR VICE PRESIDENT AND ITS TREASURER WAS DESIGNATED TO SUCCEED MR ESKRIDGE AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER A SPOKESWOMAN SAID THE COMPANY EXPECTS TO SELECT SOMEONE SOON TO TAKE OVER MR MCCAFFERTY'S DUTIES BEFORE JOINING MATTEL IN 1988 MR ESKRIDGE HELD VARIOUS EXECUTIVE POSTS AT AUTO MAKER GENERAL MOTORS CORP AND AT CONSUMERPRODUCTS COMPANY GENERAL MILLS INC MR MCCAFFERTY HELD FINANCIAL POSTS WITH CROWN ZELLERBACH CORP AND OTHER COMPANIES BEFORE MOVING TO MATTEL IN 1985 THE TWO TOYMAKERS HAVE SCHEDULED SPECIAL MEETINGS ON NOV 30 FOR SHAREHOLDERS TO VOTE ON THE ACQUISITION MATTEL SAID IT EXPECTS TO COMPLETE THE TRANSACTION IMMEDIATELY THEREAFTER ASSUMING HOLDER APPROVALS AND SATISFACTION OF OTHER CONDITIONS FISHERPRICE WILL CONTINUE TO BE BASED IN EAST AURORA NY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MATTEL CLOSED AT 29875 UP 25 CENTS 9311040099 931104 LETTERS TO THE EDITOR PHYSICIAN REFORM THYSELF AMITY SHLAES'S OCT 11 EDITORIALPAGE ARTICLE A PEDIATRICIAN'S FEARS DESCRIBES HOW DR LAURA POPPER A BABY BOOMER WHO VOTED FOR THE PRESIDENT BELIEVES THAT THE CLINTON HEALTH CARE PLAN WILL WREAK HAVOC WITH HER PATIENT CARE AND HER BUSINESS I AM A FAMILY PRACTITIONER IN A COMMUNITY HEALTH CENTER NEAR BOSTON SERVING MANY CHILDREN AND THEIR FAMILIES I BELIEVE DR POPPER HAS SADLY MISTAKEN THE NEEDS OF HER BUSINESS WITH THE NEEDS OF HER PATIENTS A SOCIETY THAT CANNOT PAY FOR THE MOST BASIC CARE FOR THOUSANDS OF CHILDREN CAN ILL AFFORD TO SUBSIDIZE MEDICAL PRACTICES THAT MANY WOULD CALL WASTEFUL FOR INSTANCE FOR YEARS MANY OF US IN MEDICINE HAVE SHAKEN OUR HEADS AND THROWN UP OUR HANDS SAYING SOMETHING MUST BE DONE OUR SYSTEM IS NOT WORKING I HAVE SEEN TOO MANY PATIENTS FOREGO IMPORTANT TESTS PROCEDURES OR MEDICINES BECAUSE THEY HAVE NEITHER THE INSURANCE NOR THE SAVINGS TO PAY THE EXORBITANT PRICES AT LAST AN ADMINISTRATION IS COURAGEOUS ENOUGH TO TAKE ON THE BEHEMOTH OF AMERICAN MEDICINE THIS IS FINALLY THE CHANCE FOR US AS A NATION TO CARE PROPERLY FOR OUR OWN AS PHYSICIANS PARENTS CHILDREN AND CITIZENS WE SHOULD SUPPORT THE PRESIDENT ON HIS BRAVE PATH EVERY NIGHT I LIE DOWN IN BED AND AM JUST SO SAD THIS IS THE END FOR MY BUSINESS AND MY PROFESSION DR LAURA POPPER WELL THEN STAND UP DR POPPER AND FIGHT THIS THING ARE WE WHIPPED PUPPIES WHO IS BILL CLINTON THE MAN WHO DEFAULTED INTO THE WHITE HOUSE WITH 43 OF AN ANTIBUSH VOTE WHO HAS NEVER WORKED IN THE PRIVATE SECTOR LET ALONE BUILT A BUSINESS AS YOU HAVE WHAT ELSE SHOULD WE EXPECT FROM LEFTISTS BUT AN INSISTENCE THAT MASSIVE GOVERNMENT INTRUSION IS OUR ONLY HOPE THERE ARE CLEARLY MUCH WISER PLANS FOR HEALTH CARE REFORMATION THAT HAVE BEEN BROUGHT FORWARD SUCH AS THAT OF THE CATO INSTITUTE PLANS THAT GUARANTEE COVERAGE FOR EVERYONE WHILE PRESERVING FULLY THE FREE ENTERPRISE SYSTEM BUT THESE OTHER APPROACHES ARE SWEPT ASIDE WITHOUT COMMENT WHY BECAUSE THE REAL AGENDA HERE IS NOT HEALTH CARE REFORM AT ALL BUT RATHER MASSIVE POLITICAL CHANGE THEY MEAN TO DRAG US KICKING AND SCREAMING INTO FULLBLOWN SOCIALISM IT WOULD APPEAR FROM THE EXAMPLE CITED OF DR POPPER THAT PHYSICIANS WILL BE DEVASTATED BY REMOVING THE PRIVILEGE OF PERFORMING AND BILLING FOR LABORATORY TESTS THE TRUTH IS QUITE THE OPPOSITE IT IS THE WIDESPREAD AND OFTEN INDISCRIMINATE USE OF THE TYPE OF TECHNOLOGY DESCRIBED IN THIS ARTICLE THAT HAS CONTRIBUTED A LARGE PORTION OF THE INCREASE IN OUTPATIENT HEALTH CARE COSTS IN FACT ALL THE PROCEDURES USED AS EXAMPLES COULD BE EASILY PERFORMED BY A COMMERCIAL LABORATORY AT NO INCONVENIENCE TO THE PATIENT AND AT A SUBSTANTIALLY REDUCED COST TO THE INSURER THE ONLY LOSER IN THIS SCENARIO WOULD BE THE PHYSICIAN WHO WOULD NOT MAKE HER EXTRA 20 TO 30 GREATER INCOME BY PERFORMING THESE TESTS THE CONTROL OF SUCH INOFFICE OR ONSITE TESTING WHETHER IT BE A SIMPLE BLOOD COUNT OR A COMPLEX MRI BY THE ORDERING PHYSICIAN IS A FINANCIAL AND ETHICAL DILEMMA THAT REPRESENTS THE STEEP EDGE OF A VERY SLIPPERY SLOPE TO COMPROMISED JUDGMENT HOW MANY UNNECESSARY PULSE OXIMETRY TESTS MUST DR POPPER PERFORM IN ORDER TO JUSTIFY THE COST OF SUCH AN EXPENSIVE PIECE OF EQUIPMENT THE COST OF THESE EXCESSIVE AND EXPENSIVE TESTS IS BORN BY ALL OF US WHO SHARE IN THE COST OF INSURANCE THERE ARE INDEED MANY ISSUES FORCING PRIMARY CARE PHYSICIANS LIKE MYSELF TO RECONSIDER OUR GOALS AND WORK HABITS IN LIGHT OF THE ONEROUS PROVISIONS OF THE CLINTON HEALTH PLAN NOT THE LEAST OF WHICH ARE THE LOSS OF AUTONOMY THE DESTRUCTION OF THE TRULY SACRED PATIENTPHYSICIAN RELATIONSHIP AND THE OVERWHELMING BURDEN OF INCREASED PAPERWORK THAT THIS PLAN IS LIKELY TO CREATE YOUR ILLUSTRATION UNFORTUNATELY HIGHLIGHTS MORE OF WHAT IS WRONG WITH THE STATUS QUO THAN IT POINTS TO THE STORM CLOUDS ON THE HORIZON I RESENT MS SHLAES'S PHRASE LOLLIPOPANDIMMUNIZATION SHOPS WHEN REFERRING TO PEDIATRIC PRACTICES SOME OF US ARE ON THE FRONT LINES LIFE AND DEATH IN THE EMERGENCY ROOM OR GASPING TWOPOUND INFANTS IN THE DELIVERY ROOM JUST MAYBE UNDER THE CLINTONS' HEALTH CARE PLAN SOME POOR PEDIATRIC PATIENT MAY GET NEEDED HEALTH CARE THAT'S NOT AVAILABLE UNDER THE CURRENT SYSTEM FOR SOME OF US PEDIATRICIANS VIOLENCE AND TEENAGE PREGNANCY HAVE REPLACED SUCKERS AND SHOTS AS SIR WILLIAM OSLER WOULD SAY WE ARE OF THE WHOLESOULED MAN OFTEN LIVING A LIFE OF GREAT SELFDENIAL AND ALWAYS OF TENDER SYMPATHY WORRIED NEITHER BY THE VAGARIES OF THE WELL NOR BY THE TESTY WAYWARDNESS OF THE SICK TEN YEARS AGO OUR SON WAS BORN AT MOUNT SINAI HOSPITAL IN NEW YORK WHERE HE RECEIVED WONDERFUL ALBEIT BRIEF CARE FROM DR LAURA POPPER NOW IN NO WAY DO I WISH DR POPPER'S INCOME TO DROP HER CONTROL OVER HER PRACTICE AND HER MEDICAL DECISIONS TO DIMINISH OR THE RELATIONSHIPS SHE NURTURES WITH HER PATIENTS AND THEIR PARENTS TO CHANGE WERE SHE MY CHILDREN'S PEDIATRICIAN WE HAVE SINCE MOVED OUT OF STATE I WOULD NOT HESITATE TO SUPPORT HER IN EVERY WAY HOWEVER I KEEP THINKING OF THE MILLIONS OF FAMILIES WHO DON'T HAVE A CHOICE OF WHETHER TO WAIT OVERNIGHT FOR A BLOOD TEST WHO CANNOT EVEN AFFORD THE BLOOD TEST OR PERHAPS WORST OF ALL WHO ARE UNABLE TO VISIT A PHYSICIAN WHO CAN ORDER THE TESTS IN THE FIRST PLACE I'M SICK UNTO DEATH OF MOSTLY EASTERN PHYSICIANS WITH LITTLE OR NO FIRSTHAND KNOWLEDGE OF MANAGED CARE PONTIFICATING ON WHAT EFFECT THEY THINK IT WILL HAVE ON THE PRACTICE OF MEDICINE WHILE THE CLINTON PLAN MAY WELL FORCE DR POPPER TO REASSESS HOW SHE DOES BUSINESS I BELIEVE IT REPRESENTS A GOLDEN OPPORTUNITY FOR THE REST OF US TO SALVAGE OUR PROFESSION MOST OF THE BELLYACHING TO DATE REALLY DERIVES FROM TWO SOURCES AN UNWILLINGNESS TO HAVE COMFORTABLE HABITS QUESTIONED AND A PERCEIVED THREAT TO OUR ALREADY CONSIDERABLE INCOMES MANAGED CARE AS WE ARE LEARNING HERE IN CALIFORNIA HELPS KEEP PHYSICIANS HONEST WITH THEMSELVES WHEN ONE DOCTOR IS OVERUTILIZING THE WHOLE GROUP KNOWS AND WANTS TO KNOW WHY MULTIPLE REFERRALS PREVIOUSLY USED AS A MEANS OF PROMOTING ONE'S PRACTICE BECOME EXTINCT QUICKLY THIS TRANSLATES OF COURSE INTO REDUCED PHYSICIAN INCOME BUT MAINLY FOR THOSE DOCTORS HEAVILY INVESTED IN SUCH QUESTIONABLE PRACTICES IN THE FIRST PLACE MANAGED CARE GIVES US THE TOOLS AND THE MOTIVE TO POLICE OURSELVES SERIOUSLY FOR THE FIRST TIME SO DR LAURA POPPER LIES DOWN EVERY NIGHT IN BED AND FEELS JUST SO SAD SORRY NO SYMPATHY FROM THIS QUARTER DR POPPER SHARES THE FIRST COUPLE'S '60S NOSTALGIA AND THEIR TASTE FOR SOCIAL ACTIVISM HER OFFICE FEATURES A PHOTO OF HER WITH MARY TRAVERS OF PETER PAUL AND MARY AT A VIETNAM WAR PROTEST NOW WHY ISN'T SHE JUST PLEASED AS PUNCH THAT WE HAVE A FIRST COUPLE WHO BOOGIES TO FLEETWOOD MAC LOOKING PAST DR POPPER'S CORRECT ARGUMENTS AGAINST HILLARY CLINTON'S PLAN FOR HEALTH CARE REFORM IT'S EVIDENT THAT WHAT UPSETS HER AND CAUSES HER TO PREDICT THE END OF MY BUSINESS AND MY PROFESSION IS THE GRIM PROSPECT THAT SHE'LL MAKE 20 TO 30 LESS MONEY I CAN'T HELP BUT CAUSTICALLY OBSERVE THAT APPARENTLY THE SPOILED '60S GENERATION HAS NOW MODIFIED THEIR VIEW ON SOCIAL ACTIVISM IT'S STILL A FINE AND NOBLE THING SO LONG AS IT DOESN'T MEAN A CHUNK OUT OF YOUR BOTTOM LINE