YOU'RE MUCH MORE GLAMOROUS THAN I THOUGHT YOU'D BE AT LEAST FROM READING YOUR ARTICLES IN THE JOURNAL I HEAR THAT ALL THE TIME SO IMAGINE MY SURPRISE AT COMING ACROSS THOSE WORDS IN FRANCESCA STANFILL'S NOVEL WAKEFIELD HALL VILLARD BOOKS 401 PAGES 23 THE COMMENT IS DIRECTED AT MS STANFILL'S HEROINE ELISABETH ROWAN WHO JUST HAPPENS TO HAVE MY JOB SHE'S A REPORTER FOR THE LEISURE & ARTS PAGE OF THE WALL STREET JOURNAL NOW EVERYONE WHO'S EVER WONDERED ABOUT MY GLAMOROUS LIFE CAN READ ALL ABOUT IT TRUE ELISABETH IS TALL WITH YORKSHIRE COLORING' PALE SKIN GLINT OF RED IN THE HAIR DEEP GRAYBLUE EYES WHILE I AM ON THE SHORT SIDE WITH WHAT MIGHT BE DESCRIBED AS BIALYSTOK COLORING BUT THEN MS STANFILL MAY HAVE THOUGHT SHE HAD TO CHANGE A FEW FACTS TO AVOID A LAWSUIT BECAUSE IT'S ALL HERE THE BLACK TIE DINNER PARTIES THE MADCAP TRIPS TO PARIS ROME AND MOSCOW THE ENORMOUSLY WEALTHY VERY MARRIED LOVER WHO SHOWERS ELISABETH WITH JEWELS FURS AND EXPENSIVE LUGGAGE NOT THE SORT ONE WOULD ASSOCIATE WITH A WRITER OR JOURNALIST SHE SMUGLY CONFIDES MY FICTIVE ALTER EGO WEARS CHANEL DRESSES DOWNS KIRS LIKE THEY'RE BUDWEISERS AND CAN SPOT AN ADAMSTYLE FRIEZE FROM 50 PACES AND I SWEAR I'VE NEVER EVEN MET MS STANFILL WHO SOMEHOW HAS IMBIBED EVERY DELICIOUS DETAIL AND THE NOTSODELICIOUS DETAILS OF MY LIFE IN THE NEWSROOM SHE STICKS IN A FEW CHOICE PARAGRAPHS ABOUT THE TRAVAILS OF THE CULTURE BEAT DEADLINE PRESSURES AND DIMWITTED EDITORS WHO DON'T APPRECIATE ELISABETH'S FRUITY TURNS OF PHRASE MY COPY WAS MUTILATED WITH CROSSOUTS DELETIONS AND ACERBIC COMMENTS FROM MY EDITOR BELITTLING WHAT HE CALLED MY LOVE AFFAIR' WITH LATINISMS AND FOREIGN EXPRESSIONS SHE GROUSES NO WONDER ELISABETH DITCHES THE JOURNAL'S CESAR PELLIDESIGNED TOWER WITH ITS KAFKAESQUE TALKING ELEVATORS FOR WAKEFIELD HALL A PALATIAL COUNTRY ESTATE THAT WAS HOME TO THE LATE JOANNA EAKINS A FAMOUS SHAKESPEARIAN ACTRESS INVITED BY JOANNA'S FAMILY TO WRITE HER BIOGRAPHY ELISABETH IS DRAWN INTO THE LUXURIOUS MYSTERIOUS WORLD THAT WAKEFIELD REPRESENTS AS NOVELS GO THIS IS REBECCA MEETS HIS GIRL FRIDAY CATERED BY MARTHA STEWART WHAT A STRANGE ROAD IT WAS TO WAKEFIELD HALL MUSES ELISABETH WHO SEEMS TO HAVE READ TOO MUCH DAPHNE DU MAURIER FOR HER OWN GOOD HOW MANY TIMES I HAD IMAGINED ARRIVING HERE HOW MANY TIMES SINCE FIRST MEETING JOANNA EAKINS ON THAT SUMMER AFTERNOON I HAD VISUALIZED THE ROAD THE GATE THE HOUSE ITSELF ELISABETH IS WOWED BY THE HUGE TERRA COTTA POTS SPILLING WITH PURPLE PRIMROSES THE FLUTED COLUMNS WHOSE CAPITALS WERE PICKED OUT IN GOLD AND THAT'S JUST BY PAGE SEVEN PERFECT ORDER IS A SEDUCTION IN ITSELF SHE GUSHES IN ONE OF THE TWITTERING PASSAGES THAT GAVE ME A TWINGE OF SYMPATHY FOR THAT MALIGNED EDITOR SURELY IT WAS WHAT I FOUND SO INEBRIATING ABOUT WAKEFIELD HALL THE BEAUTY AND ORDER OF THOSE FAULTLESSLY APPOINTED ROOMS WITH THEIR THICK LUXURIOUS CURTAINS IMMORTAL FLOWERS AND WAXSCENTED ANTIQUES TOO BAD THE PEOPLE LEAVE SOMETHING TO BE DESIRED UPON MEETING ELISABETH JOANNA'S SURLY BONDTRADING STEPDAUGHTER ROSALIND WASTES NO TIME IN DECLARING THAT SHE DOESN'T READ THE LEISURE AND ARTS' PAGE A WHOLE LOT I WOULDN'T EXPECT YOU WOULD ELISABETH REPLIES COOLLY WE KNOW ROSALIND'S TYPE AND THEN THERE'S LAWRENCE BRANDT THE HEATHCLIFFY ARCHITECT WHO HELPED CREATE WAKEFIELD WE KNOW THAT HE IS DESTINED TO WIN ELISABETH'S HEART WHEN HE CALLS UP TO TELL HER THAT ONE OF HER JOURNAL BOOK REVIEWS WAS MORE SCHOLARLY THAN THE BOOK ANOTHER OF HIS BACKHANDED COMPLIMENTS SHE FUMES SHE HAS LUNCH WITH HIM ANYWAY TRUTH IS ELISABETH IS GETTING PRETTY TIRED OF HER ADULTEROUS SUGAR DADDY JACK VARADY WHO LAUNCHED HIS SEDUCTION BY OFFERING TO UPGRADE HER AIR TICKET TO FIRST CLASS SHE REFUSED THIS IS FICTION AFTER ALL BUT SUCCUMBS TO HIS CHARMS AFTER HE TAKES HER HAND IN THE BACK OF HIS LIMOUSINE AND MURMURS I NEED YOU TO SURVIVE BUT HE WAS NOT MINE ELISABETH CRIES HE HAD A WIFE HE RESPECTED AND FOUR DAUGHTERS HE DEEPLY LOVED THEY LIVED IN GREENWICH I IN NEW YORK JACK DID NOT SEEM DISCONTENT WITH THIS ARRANGEMENT WHILE I READER I MARRIED HIM' I LONGED TO CRY I WON'T GIVE AWAY THE DETAILS BUT REST ASSURED THAT BY THE NOVEL'S END ELISABETH DECIPHERS THE MYSTERIES OF WAKEFIELD WINS ANOTHER BOOK CONTRACT AND GETS A HUSBAND AND A LOVELY HOME IN EAST HAMPTON THEN SHE QUITS THE JOURNAL WHAT'S NEXT FOR ELISABETH WAKEFIELD HALL IS JUST BEGGING FOR A SEQUEL AND IF MS STANFILL IS AMENABLE I HAVE THE TITLE FOR IT BOROUGH HALL AFTER MY MYSTERYENSHROUDED PALLADIANSTYLE SUBWAY STOP IN BROOKLYN BOROUGH HALL WILL CHRONICLE ELISABETH'S TRIUMPHANT RETURN TO THE LEISURE & ARTS PAGE IT WILL BARE ALL THE GOURMET LUNCHES IN THE DOW JONES CAFETERIA THE GLAMOROUS TRIPS TO COVER CULTURE IN SUCH EXOTIC PLACES AS THE BOWERY AND GLADSTONE NJ THE INTRIGUEFILLED COMMUTES HOME ON THE LEX LINE IT'LL SELL A MILLION 9309290071 930929 ABREAST OF THE MARKET STOCKS END MIXED AFTER TRADING IN NARROW RANGE VOLUME STEADY BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE RALLY THAT HAS CARRIED STOCKS HIGHER FOR ALMOST A WEEK RAN OUT OF GAS LEAVING PRICES MIXED WITH BOND PRICES STEADY AND FEW INSPIRING DEVELOPMENTS ON THE US ECONOMY OR RUSSIA PRICES WERE HELD IN A TIGHT RANGE THE DOW JONES INDUSTRIAL AVERAGE ENDED WITH A LOSS OF 168 OR 005 TO 356602 IT HAD SOARED 2459 MONDAY BROADER INDEXES FELL SLIGHTLY BUT ADVANCING ISSUES OUTPACED DECLINERS 1082 TO 926 ON THE BIG BOARD VOLUME WAS MODEST AT 2433 MILLION SHARES AGAINST 2421 MILLION MONDAY THE NASDAQ COMPOSITE INDEX THOUGH CONTINUED ITS CLIMB JUMPING 371 OR 049 TO 76366 A RECORD FOR A FOURTH STRAIGHT DAY ANALYSTS SAID BUYING BY INVESTORS SEARCHING FOR EARNINGS GROWTH HAS HELPED POWER OVERTHECOUNTER STOCKS HIGHER BUYING TIMED TO THIS WEEK'S QUARTEREND BY BIG INSTITUTIONS SOCALLED WINDOW DRESSING ALSO HD BUOY NASDAQ ISSUES AND SUPPORT THE OVERALL MARKET ANALYSTS SAID BUT ALFRED GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS SAID THAT AFTER MONDAY'S SHARP ADVANCE YESTERDAY'S MODEST PROFITTAKING WASN'T UNEXPECTED HE EXPECTS THE QUARTEREND BUYING TO PICK UP AGAIN TODAY AND PREDICTED NEW HIGHS FOR BROADBASED LARGECAP INDEXES LATER IN THE WEEK MARKET BAROMETERS SUCH AS THE STANDARD & POOR'S 500 STOCK INDEX AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ARE WITHIN 05 OF THE ALLTIME HIGHS THEY SET IN LATE AUGUST THE INDUSTRIAL AVERAGE IS ABOUT 24 FROM ITS HISTORIC PEAK ANY GAINS THAT EMERGE LATER THIS WEEK HOWEVER MIGHT BE SHORTLIVED SAID PHILIP RETTEW A MARKET SPECIALIST AT MERRILL LYNCH STOCKS HAVE SOARED SINCE SINKING A WEEK AGO ON THE INITIAL WORRIES ABOUT THE POLITICAL UNREST IN RUSSIA AND HE SAID PROFITTAKING CAN BE EXPECTED ECONOMIC DATA RELEASED YESTERDAY HAD LITTLE EFFECT ON STOCKS THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX INCHED UP TO 626 THIS MONTH FROM A REVISED 593 IN AUGUST LYNCH JONES RYAN'S JOHNSON REDBOOK AFFILIATE SAID RETAIL SALES ROSE 23 THIS MONTH FROM LAST BARNES & NOBLE SHOT UP 46 IN ITS FIRST DAY OF TRADING FOLLOWING THE BOOKSTORE OPERATOR'S INITIAL PUBLIC OFFERING OF 82 MILLION SHARES THE SHARES WHICH HAD BEEN PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY CLOSED AT 2925 UP 925 BARNES & NOBLE'S SHARES OPENED AT 2825 AND TRADED AS HIGH AS 2975 AND AS LOW AS 2650 ON VOLUME OF ABOUT 53 MILLION SHARES MICRON TECHNOLOGY DROPPED 3 1/4 TO 59 3/4 THE CHIP MAKER'S EARNINGS SOARED TO 152 A FULLY DILUTED SHARE IN THE FOURTH QUARTER ENDED THIS MONTH FROM SEVEN CENTS A YEAR AGO BUT MICRON WARNED THAT IT COULD BE AFFECTED IN THE FUTURE BY CHANGING BUSINESS CONDITIONS THE LATEST QUARTER MEANWHILE INCLUDED A 13CENT GAIN FROM LICENSING MOST OTHER SEMICONDUCTORS CONTINUED RISING MOTOROLA JUMPED 2 TO 104 1/2 ADVANCED MICRO DEVICES ADDED 5/8 TO 30 AND ON NASDAQ INTEL ROSE 2 3/8 TO 72 3/4 CYPRESS SEMICONDUCTOR RALLIED 2 1/8 TO 15 1/8 ALEX BROWN & SONS ANALYST JOHN MARREN UPGRADED HIS RATING ON THE STOCK TO BUY FROM NEUTRAL AND INCREASED HIS 1993 AND 1994 EARNINGS ESTIMATES FOR THE COMPANY HE SAID THE COMPANY WILL BENEFIT FROM STRONG PRICES FOR SRAM OR STATIC RANDOMACCESS MEMORY CHIPS CHEVRON JUMPED 1 1/4 TO 94 1/2 DEAN WITTER REYNOLDS INCREASED ITS ESTIMATES OF THE COMPANY'S THIRDQUARTER AND 1993 EARNINGS MANY OTHER OIL STOCKS FOLLOWED THE PRICE OF CRUDE OIL HIGHER MOBIL GAINED 5/8 TO 80 1/8 AND TEXACO ADDED 3/4 TO 66 PITTSTON MINERALS SURGED 3 5/8 TO 23 THE STOCK JUMPED 1 1/8 MONDAY AFTER THE COMPANY AGREED TO BUY THE COAL MINING ASSETS OF ADDINGTON RESOURCES FOR 157 MILLION A MOVE THAT ANALYSTS APPLAUDED ADDINGTON SHARES WERE UNCHANGED AT 17 1/2 IN NASDAQ TRADING THEY LOST 1/4 MONDAY EG&G SHED 2 1/4 TO 17 1/8 THE MAKER OF SCIENTIFIC INSTRUMENTS SAID IT EXPECTS ITS THIRDQUARTER EARNINGS TO BE DOWN ABOUT 40 FROM THE 39 CENTS IT EARNED A YEAR EARLIER IT BLAMED SLUGGISH ECONOMIC CONDITIONS IN WESTERN EUROPE AND THE US ITT CORP RALLIED 1 3/4 TO 93 3/4 AFTER IT AGREED TO BUY AN 80 INTEREST IN GENERAL MOTORS' MOTORS AND ACTUATORS UNIT AND A PART OF ITS DELCO CHASSIS BUSINESS FOR 400 MILLION GM EASED 1/4 TO 45 WARNERLAMBERT SLUMPED 1 1/4 TO 66 1/2 IT EXPECTS ITS THIRDQUARTER EARNINGS TO FALL SHORT OF THE 122ASHARE PROFIT IT HAD A YEAR AGO RESULTS FOR ALL OF 1993 WILL BE ABOUT EVEN WITH THE 1992 LEVEL CHINA TIRE JUMPED 2 1/4 TO 15 7/8 AFTER THE HONG KONG TIRE MANUFACTURER REPORTED EARNINGS OF 130 A SHARE FOR THE FIRST SIX MONTHS OF 1993 UP FROM 69 CENTS IN THE YEAREARLIER PERIOD 9309290070 930929 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 318 120 TO 209 DAYS 320 210 TO 239 DAYS 324 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 317 30 DAYS 317 60 DAYS 318 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 257 TWO MONTHS 259 THREE MONTHS 274 SIX MONTHS 288 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 305 THREE MONTHS 317 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 305 60 DAYS 305 90 DAYS 314 120 DAYS 314 150 DAYS 314 180 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 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 3/8 SIX MONTHS 3 1/2 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 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY SEPTEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 290 13 WEEKS 302 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 660 60 DAYS 668 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 660 60 DAYS 670 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309290069 930929 INSIDE TRACK INSIDER SALES ACCELERATE AT CHIP MAKERS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL INSIDER SELLING IN SECONDTIER SEMICONDUCTOR STOCKS IS RAISING A CAUTIONARY FLAG OVER THE HIGHFLYING CHIP INDUSTRY MOST COMPUTERCHIP MAKERS ENJOYED STRONG EARNINGS GROWTH THIS YEAR AND MANY CHIP STOCKS HAVE HAD SPECTACULAR RUNS IN RECENT MONTHS DEFYING THE MIDSUMMER SHAKEOUT IN OTHER TECHNOLOGY STOCKS ALTHOUGH THERE ARE FEW BEARISH FUNDAMENTALS ON THE HORIZON THE INDUSTRY HISTORICALLY HAS MOVED IN TWO AND THREEYEAR CYCLES ANALYSTS NOTE AND NOW WITH THE SECONDTIER GROUP MOVING INTO THE CLOSE OF ITS FIRST BOOM YEAR IN THE 1990S INSIDERS AT MIDSIZE SEMICONDUCTOR COMPANIES APPEAR TO BE HEDGING THEIR BETS THAT THE GOGO SEASON WILL LAST WELL INTO 1994 IN RECENT WEEKS INSIDERS AT LSI LOGIC CYPRESS SEMICONDUCTOR CORP INTEGRATED DEVICE TECHNOLOGY AND A HANDFUL OF OTHER MIDSIZE CHIP MANUFACTURERS HAVE ENGAGED IN A FLURRY OF SELLING ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS THE SELLING COMES AS INVESTORS IN SEMICONDUCTOR STOCKS ARE GROWING NERVOUS EARLIER THIS MONTH AN APPARENTLY MISINTERPRETED COMMENT FROM A COMPAQ COMPUTER CORP EXECUTIVE ABOUT A POTENTIAL STAGNATION OF DOMESTIC PERSONALCOMPUTER SALES NEXT YEAR SENT SEMICONDUCTOR SHARES INTO A SWOON THE STOCKS WHICH HAVE SINCE REBOUNDED WERE KNOCKED BECAUSE PERSONAL COMPUTERS ACCOUNT FOR AROUND 40 OF TOTAL DEMAND FOR SEMICONDUCTORS THE INSIDER SELLING A COMBINATION OF DIRECT OPENMARKET SALES AND OPTIONRELATED DISPOSALS IS WELL ABOVE THE NORM AT THOSE COMPANIES IN THE CASES OF LSI LOGIC AND CYPRESS SEMICONDUCTOR THE DISPOSALS ARE AT ALLTIME HIGHS NOTES BOB GABELE HEAD OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS INSIDER ACTIVITY THE SALES AT INTEGRATED DEVICE TECHNOLOGY ARE THE HIGHEST SINCE 1987 HE ADDS HE NOTES THAT INSIDER SELLING IS AT RECORD LEVELS AMONG SEVERAL COMPANIES TIED CLOSELY TO THE CHIPMANUFACTURING INDUSTRY INCLUDING SILICON VALLEY GROUP CIRCUIT SYSTEMS AND LAM RESEARCH ADDS MIKE PAINCHAUD WHO TRACKS INSIDER ACTIVITY FOR MARKET PROFILE THEOREMS A SEATTLEBASED INVESTMENT ADVISORY FIRM WHILE THERE'S BEEN LITTLE CHANGE IN INSIDER ACTIVITY AT THE MAJOR DIVERSIFIED SEMICONDUCTOR MANUFACTURERS THE SMALLER COMPANIES HAVE ALMOST UNIVERSALLY DISPLAYED AN INCREASE IN INSIDER SELLING OVER THE LAST COUPLE OF WEEKS AT MICRON TECHNOLOGY THE BOISE IDAHO MAKER OF SEMICONDUCTOR COMPONENTS AND DYNAMIC RANDOM ACCESS MEMORY CHIPS THE LEVEL OF INSIDER SELLING HAS BEEN HEAVY SO FAR THIS YEAR SELLING HAS BEEN TWICE THAT OF THE ANNUAL AVERAGE MR GABELE NOTES MICRON SHARES SLUMPED 325 OR 5 TO 5975 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AFTER IT POSTED MONDAY A SURGE IN FISCALFOURTH QUARTER EARNINGS PERSHARE PROFIT SOARED TO 152 FOR THE QUARTER ENDED SEPT 2 FROM SEVEN CENTS A YEAR EARLIER BUT MICRON WARNED SHAREHOLDERS TO BE MINDFUL OF THE CYCLICAL NATURE OF THE SEMICONDUCTOR INDUSTRY AND DRAM PRICING AND OF THE HISTORICAL VOLATILITY OF THE COMPANY'S OPERATIONS AND STOCK PRICE THE COMPANY HAS MADE SUCH WARNINGS PREVIOUSLY ANALYSTS AT COWEN & CO IN BOSTON WARNED INVESTORS THAT WHILE INDUSTRY FUNDAMENTALS ARE AS STRONG AS WE'VE SEEN IN 10 YEARS MANY SEMICONDUCTOR STOCKS ARE SELLING AT RECORD LEVELS PERHAPS DISCOUNTING EVEN GREATER EXPECTATIONS THAT MEANS THAT INVESTORS MUST TREAD CAREFULLY LOOK FOR NAMES THAT COMBINE A RELATIVELY LOW VALUATION LOW DEPENDENCE ON THE POTENTIALLY VOLATILE PERSONAL COMPUTER SECTOR AND A PRODUCT STRATEGY THAT ADDRESSES THE HIGHEST LONGTERM GROWTH RATES FOR COWEN THOSE CRITERIA ESSENTIALLY ELIMINATE MOST OF THE SECONDTIER COMPANIES LEAVING ONLY SUCH LARGE DIVERSIFIED MANUFACTURERS AS MOTOROLA WHICH HAS A LARGE PRESENCE IN THE BOOMING TELECOMMUNICATIONS MARKET AS THE BROKERAGE FIRM'S TOP PICKS JACK GERAGHTY AN ANALYST WITH FIRST BOSTON SAID THE SELLING ACTIVITY AMONG SECONDTIER COMPANIES COULD SIGNAL AN ADMISSION OF UNCERTAINTY ABOUT THE YEAR AHEAD IN WHAT IS ONE OF THE WORLD'S MOST HIGHLY CYCLICAL BUSINESSES MR GERAGHTY SAYS THAT FOR NOW THE INDUSTRY'S FUNDAMENTALS APPEAR QUITE GOOD HE SAYS HE'S STILL BULLISH ON THE SECTOR BUT WANTS TO ASSESS THIRDQUARTER EARNINGS BEFORE MAKING ANY EXTENDED FORECASTS INTO 1994 THE FIRST BOSTON ANALYST SAYS A POTENTIAL SLOWDOWN IN PERSONAL COMPUTER SALES NEXT YEAR IS WEIGHING ON SENTIMENT IN THE INDUSTRY BUT NOT TO THE POINT OF JUSTIFYING ANY MAJOR CRACK IN SHARE PRICES OF COMPUTERCHIP MAKERS EXECUTIVES AT LSI LOGIC WHICHES CUSTOM LOGIC CHIPS AREN'T EXPRESSING MUCH CONCERN ABOUT ANY POTENTIAL SLUMP IN THE PC MARKET WHERE PROFIT MARGINS FOR PC MAKERS CONTINUE TO BE SQUEEZED OVERALL OUR BUSINESS LOOKS GOOD SAID LSI LOGIC CHAIRMAN WILFRED CORRIGAN THE PC BUSINESS WHICH REPRESENTS ABOUT 20 OF OUR TOTAL BUSINESS IS STRONG AND IS GOING TO CONTINUE THAT WAY MR CORRIGAN SOLD 200000 SHARES OR AROUND 5 OF HIS TOTAL HOLDINGS IN LSI LOGIC IN EARLY AUGUST AT AN AVERAGE PRICE OF 1750 SEC DATA SHOW I BOUGHT A BUNCH OF STOCK A YEAR AGO HE RECALLS HE SAYS HE SOLD PART OF THAT PARCEL LAST MONTH BECAUSE HE FELT IT WAS TIME TO SIMPLY GET LIQUID AGAIN SINCE JUNE EIGHT LSI LOGIC INSIDERS INCLUDING MR CORRIGAN HAVE SOLD 391340 SHARES AT PRICES FROM 1350 TO 1850 A SHARE SEC DATA SHOW FOR THE YEAR TO DATE INSIDERS SOLD AROUND 12 MILLION SHARES NEARLY DOUBLE THE MOST RECENT SELLING PEAK IN 1986 OF 696750 SHARES MR CORRIGAN SAID MOST OF THE SELLING AT HIS COMPANY IS THE RESULT OF INSIDERS FINALLY HAVING THE OPPORTUNITY TO EXERCISE OPTIONS AFTER LONG STRETCHES OF DEPRESSED SHARE PRICES THE COMPANY RETURNED TO PROFITABILITY THIS YEAR FOLLOWING A NET LOSS OF 1102 MILLION OR 248 A SHARE IN 1992 THE CHIP MAKER'S IMPROVED EARNINGS PERFORMANCE FOLLOWING ITS MAJOR COSTCUTTING EFFORTS HAS BEEN APPLAUDED BY INVESTORS INDEED THE MILPITAS CALIF COMPANY HAS SEEN ITS STOCK SOAR FROM ITS 52WEEK LOW OF 5375 BACK IN OCTOBER TO A RECENT HIGH OF 1925 ON AUG 9 THE STOCK CLOSED YESTERDAY AT 1825 UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE HIS OPTIMISM ON THE PC MARKET NOTWITHSTANDING MR CORRIGAN ACKNOWLEDGED THAT THE COMPANY WILL PROBABLY FOCUS MORE ON SUPPLYING ADVANCED HIGHERMARGIN CHIPS TO THE COMMUNICATIONS AND COMPUTER WORKSTATION MARKETS AT CYPRESS SEMICONDUCTOR IN SAN JOSE CALIF FIVE INSIDERS SOLD 388787 SHARES AT AN AVERAGE PRICE OF 15 A SHARE BETWEEN JULY 27 AND AUG 26 BRINGING TOTAL SALES THIS YEAR TO 482445 SHARES OR MORE THAN ANY FULL YEAR ON RECORD SEC DATA SHOW CHIEF FINANCIAL OFFICER PAT VERDERICO SAID STOCK OPTIONS ARE A FORM OF COMPENSATION AND PEOPLE FROM TIME TO TIME WILL SELL THE COMPANY WHICH MAKES HIGHPERFORMANCE DIGITAL INTEGRATED CIRCUITS POSTED A NET LOSS OF 21 MILLION OR 56 CENTS A SHARE LAST YEAR THE LOSS WAS LARGELY DUE TO A 397 MILLION PRETAX CHARGE FOR RESTRUCTURING AND OTHER ITEMS CYPRESS SEMICONDUCTOR HAS SINCE SEEN ITS STOCK MORE THAN DOUBLE FROM ITS 52WEEK LOW OF 788 IN THE SUMMER OF 1992 TO A RECENT HIGH OF 1675 ON AUG 23 THE STOCK HAS SINCE DRIFTED DOWN TO LEVELS AROUND 14 A SHARE YESTERDAY IT CLOSED AT 15125 UP 2125 OR 16 IN COMPOSITE TRADING ON THE BIG BOARD AFTER ALEX BROWN & SONS RAISED ITS INVESTMENT RATING TO BUY FROM NEUTRAL 9309290068 930929 TRAVEL PRICES FOR RENTAL CARS ARE SET TO CLIMB SHARPLY AGAIN BY DOUGLAS LAVIN AND ROBERT JOHNSON STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT FOR THE SECOND YEAR IN A ROW CONSUMERS ARE BEING HIT WITH BIG RENTALCAR PRICE INCREASES HERTZ CORP ANNOUNCED YESTERDAY THAT IT IS RAISING PRICES 12 IN MAJOR CITIES ACROSS THE COUNTRY AND THE REST OF THE RENTALCAR INDUSTRY RUSHED TO FOLLOW SUIT I APPLAUD THEM SAID DAVID SPARKS SENIOR VICE PRESIDENT FOR MARKETING AND SALES AT BUDGET RENT A CAR CORP WHERE PRICES WILL RISE AT A SIMILAR RATE THE INDUSTRY NEEDS TO GET ITS PRICES IN LINE WITH COSTS AT AVIS INC A SPOKESMAN SAID THE COMPANY WAS RUSHING TO CHANGE ITS PRICE STRUCTURE IN TIME FOR SUNDAY NEWSPAPER ADS IN GENERAL THE PRICE INCREASES MEAN THAT CARRENTAL COSTS WILL GO UP 5 A DAY AND 20 A WEEK IN LOS ANGELES A FORD TEMPO FROM HERTZ WILL COST 4499 A DAY UP FROM 3999 THE INCREASES ARE EVEN STEEPER WHEN COMPARED WITH 1991 LEVELS A TEMPO THAT WAS 3099 A DAY IN ATLANTA TWO YEARS AGO WILL COST 4399 A DAY CARRENTAL RATES ARE ALREADY PRETTY OUTRAGEOUS AND SOME PEOPLE ARE BALKING SAID GARY TOPPING PRESIDENT OF A TRAVEL AGENCY IN GULF SHORES ALA SOME OF MY CUSTOMERS ARE DOWNGRADING THE CARS THEY TAKE HE SAID AND ABOUT 10 OF HIS CUSTOMERS ARE REJECTING AIRPORT RENTAL CARS AND ARE ARRANGING INSTEAD TO BE PICKED UP A YEAR AGO IT WAS PRETTY RARE THE REASON FOR THE PRICE INCREASES A BIG JUMP IN THE COST OF CARS AFTER HEAVILY SUBSIDIZING FLEET SALES TO RENTALCAR COMPANIES TO PUMP UP VOLUME THE BIG THREE AUTO MAKERS REVERSED COURSE IN 1992 THEY RAISED THEIR PRICES TO DAILY RENTAL COMPANIES AS MUCH AS 30 FOR THE 1993 MODEL YEAR AND BY A SIMILAR AMOUNT FOR THE 1994 MODEL YEAR WHICH BEGINS THIS FALL ONE POSSIBLE RESULT OF THE LATEST RENTALCAR RATE INCREASES IS THAT MORE PEOPLE WILL DRIVE THEMSELVES TO A VACATION SPOT SOME PEOPLE ARE GOING TO SAY THE HECK WITH IT WE'LL JUST DRIVE THE CAR THAT'S ALREADY SITTING IN OUR GARAGE' SAID ED PERKINS EDITOR OF CONSUMER REPORTS TRAVEL LETTER AIRLINES COULD SUFFER AS A RESULT ANOTHER POTENTIAL EFFECT IS LESS VARIED TRAVEL MORE TOURISTS GOING TO A DESTINATION AND STAYING THERE OR USING MORE BUSES AND TRAINS SAYS MR PERKINS MORE PEOPLE WHO GO TO VEGAS WILL TAKE A TOUR BUS IF THEY WANT TO VENTURE OUT TO SEE HOOVER DAM OR THE GRAND CANYON THE PRICE INCREASES WILL ALSO BRING CHANGES FOR CORPORATE TRAVELERS AND THOSE WHO MANAGE THEIR EXPENSE ACCOUNTS HAROLD SELIGMAN PRESIDENT OF MANAGEMENT ALTERNATIVES INC A STAMFORD CONN CONSULTANT TO COMMERCIAL TRAVELERS SAID HIGHER PRICES MAY PROMPT CORPORATE TRAVEL MANAGERS TO TAKE A LONGER LOOK AT SMALL OFFAIRPORT RENTERS BUT EVERYONE'S PRICE WILL GO UP IT'S JUST A MATTER OF DEGREE MR SELIGMAN SAID NEGOTIATED CONTRACTS BETWEEN CORPORATE RENTERS AND CARRENTAL COMPANIES WILL PROBABLY LED WITH INCREASED COST PRESSURE IT WILL INCLUDE COLLISIONDAMAGE WAIVERS AND CITY SURCHARGESBECAUSE OF HIGHER OPERATING COSTS IN SUCH CITIES AS NEW YORK AND NOT JUST THE BASIC DAILY RATE ANYMORE MR SELIGMAN SAID RENTERS WILL HAVE TO PAY MORE ATTENTION TO THE INCREMENTAL COSTS RENTAL COMPANIES HAVE LITTLE CHOICE BUT TO PAY MORE FOR CARS BECAUSE OF THE APPRECIATING YEN JAPANESE CAR MAKERS ARE ALSO RAISING PRICES AND IN ADDITION TO INCREASING PRICES THE BIG THREE ARE SELLING FEWER CARS TO RENTAL COMPANIES IN 1992 GENERAL MOTORS CORP SOLD 750000 VEHICLES TO RENTALCAR COMPANIES LIKE THE OTHER CAR MAKERS IT HAS SPECIAL PROGRAMS FOR RENTALCAR SALES UNDER WHICH IT AGREES TO BUY BACK VEHICLES AFTER A CERTAIN NUMBER OF MONTHS FOR 1994 GM EXPECTS TO SELL ONLY 475000 VEHICLES FOR RENTAL FLEETS CHRYSLER CORP SAYS THAT AFTER REDUCING RENTALFLEET VOLUME IN 1992 AND 1993 IT IS ANTICIPATING A 29 DROP IN THE 1994 MODEL YEAR FORD MOTOR CO IS ALSO SCALING BACK AND EXPECTS FURTHER PRICE INCREASES AS THE RECESSION EASES AND MORE PROFITABLE RETAIL SALES CONTINUE TO GROW MORE INCREASES THE PRICES WILL CONTINUE TO INCREASE TO DAILY RENTAL COMPANIES AND VOLUME IS LIKELY TO FLATTEN OUT OR DECLINE SAID JOHN WIERICH FINANCIAL ANALYSIS MANAGER FOR FORD'S RENTALCAR SALES SLIM PROFITS IN THE CARRENTAL INDUSTRY WILL FORCE EVEN SMALL PLAYERS TO INCREASE THEIR PRICES IN LINE WITH HERTZ INDUSTRY OBSERVERS SAID JOHN C SALGAJ VICE PRESIDENT OF OPERATIONS AT VALUE RENT A CAR INC WHICH RENTS PRIMARILY IN THE SOUTHEAST SAID HE HAS LITTLE CHOICE BUT TO RAISE PRICES BECAUSE HIS SUPPLIERS ARE INCREASING THEIR PRICES AND OTHER CAR MANUFACTURERS AREN'T INTERESTED IN TAKING HIS BIDS THERE WAS NO ALTERNATIVE I HAVE NO LEVERAGE MR SALGAJ SAID DETROIT'S MOVE AWAY FROM SUBSIDIZED CARRENTAL SALES COMES AFTER YEARS OF USING NOPROFIT OR LOWPROFIT SALES TO KEEP FACTORIES RUNNING IN THE PAST TWO YEARS AN UPTICK IN MORE PROFITABLE CONSUMER DEMAND AND SHARP LOSSES AT GM AND FORD HAVE PROMPTED THE BIG THREE TO CONCENTRATE THEIR BUSINESS WHERE THE PROFITS ARE RETAIL SALES THERE'S ANOTHER REASON FOR THE SHIFT CAR MAKERS WANT THEIR RENTALCOMPANY CUSTOMERS TO KEEP CARS LONGER IN 1991 TO PUMP UP VOLUME CAR COMPANIES OFFERED SUBSIDIZED PROGRAMS IN WHICH THEY REPURCHASED RENTAL CARS AFTER FOUR MONTHS THOSE PROGRAM CARS WERE THEN RESOLD AND SHARPLY UNDERCUT NEWCAR SALES NOW CARRENTAL COMPANIES ARE SAYING THEY WILL HOLD ON TO THEIR CARS AN AVERAGE OF EIGHT TO NINE MONTHS THAT MEANS CONSUMERS WILL BE PAYING MORE FOR OLDER CARS WITH MORE MILES ON THEM FOR EACH MONTH OF USE A RENTAL CAR PUTS ON 2000 TO 2500 MILES 9309290067 930929 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN LEON BRITTAN THE EUROPEAN COMMUNITY'S TRADE COMMISSIONER REMAINS UPBEAT ABOUT PROSPECTS FOR A WORLD TRADE AGREEMENT DESPITE THE US REFUSAL TO REOPEN LAST YEAR'S ECUS FARM PACT FOLLOWING WASHINGTON TALKS MR BRITTAN EXPRESSED OPTIMISM ABOUT CONCLUDING TRADELIBERALIZATION TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE BEFORE THE DEC 15 EXPIRATION OF THE US PRESIDENT'S FASTTRACK MANDATE CITING PROGRESS IN AREAS OTHER THAN AGRICULTURE FRANCE HAS THREATENED TO VETO THE FARM ACCORD FOR WHICH MR BRITTAN OFFERED THE US CLARIFYING SUGGESTIONS THE ECUS PACT TO REDUCE SUBSIDIZED FARM EXPORTS BY 21 OVER SIX YEARS HAS BEEN FAULTED BY US FARM GROUPS AS WEIGHTED TOO HEAVILY IN THE EC'S FAVOR STILL MR BRITTAN'S POSITIVE SPIN ECHOED BY SEVERAL EC FARM MINISTERS INDICATED AN EC COMMISSION STRATEGY TO PUSH TALKS IN OTHER AREAS SUCH AS SERVICES AND INDUSTRIAL GOODS THE EC FEARS THAT WITH A FARMDISPUTE IMPASSE OTHER GATT COUNTRIES WILL REFUSE TO NEGOTIATE SERIOUSLY CHINA INTENDS TO BUY 600 MILLION OF EQUIPMENT AND EXPERTISE FROM FOREIGN COMPANIES IN UPGRADING AND EXPANDING ITS OVERCROWDED RAILWAYS THE GOVERNMENT PLANS TO BUILD 4090 MILES OF TRACK BY 1995 INCREASING THE SYSTEM TO 37200 MILES CHINA'S SHOPPING LIST RANGES FROM ELECTRIC LOCOMOTIVES AND COACHES TO MAINTENANCE GEAR AND TELECOMMUNICATIONS TECHNOLOGY CHINA ALSO WANTS TO FORM JOINT VENTURES TO MAKE AND OPERATE RAILWAY EQUIPMENT HUNGARY DEVALUED THE FORINT CURRENCY 45 AGAINST A BASKET OF THE US DOLLAR AND THE GERMAN MARK THE MOVE THE FIFTH THIS YEAR HAD BEEN EXPECTED BECAUSE OF DECLINING EXPORTS SEPARATELY THE GOVERNMENT SAID FOREIGN COMPANIES INVESTED 149 BILLION IN PRIVATIZED HUNGARIAN ENTERPRISES THROUGH AUGUST THE AVERAGE FOREIGN STAKE IN 250 FIRMS OWNED JOINTLY WITH HUNGARY IS 5254 AUSTRIA LEADS THE SELLOFF LIST WITH INVESTMENTS OF 4559 MILLION OR 31 OF THE TOTAL IN 73 CONCERNS FOLLOWED BY GERMANY WITH 15 IN 38 FIRMS THE US IS 11TH WITH 261 MILLION OR 2 IN 12 ENTERPRISES ONECROWN COINS MINTED BY FORMER CZECHOSLOVAK AUTHORITIES WON'T BE LEGAL TENDER IN THE CZECH REPUBLIC STARTING FRIDAY AFTER THE CZECH AND SLOVAK REPUBLICS BECAME INDEPENDENT STATES JAN 1 THEY MAINTAINED A COMMON CURRENCY UNTIL FEB 8 WHEN SEPARATE CURRENCIES BEGAN TO CIRCULATE THE OLD ONECROWN COINS MAY BE SWAPPED FOR CZECH REPUBLIC ONECROWN PIECES THROUGH JAN 31 THE OLD CZECHOSLOVAK TWOCROWN AND FIVECROWN PIECES WILL CIRCULATE UNTIL NOV 30 A US DOLLAR IS VALUED AT 28858 CROWNS A FORMER THAI PRIME MINISTER GEN CHATICHAI CHOONHAVAN SUED THE GOVERNMENT DEMANDING THE RETURN OF ABOUT 10 MILLION IN ASSETS SEIZED BY AN ANTIGRAFT COMMISSION IN LATE 1991 HE IS ONE OF 10 POLITICIANS WHOSE ASSETS WERE CONFISCATED AFTER THE MILITARY OVERTHREW HIS GOVERNMENT IN FEBRUARY 1991 THE MILITARY ALLEGED RAMPANT CORRUPTION TO JUSTIFY THE SEIZURE OF 72 MILLION OF ASSETS FROM CABINET MEMBERS SINCE THE SEIZURE ORDER WAS RULED UNCONSTITUTIONAL THREE OTHER POLITICIANS FILED SIMILAR SUITS EGYPT EARMARKED 30 MILLION FOR WEAPONS AND COMMUNICATIONS EQUIPMENT TO COMBAT ISLAMIC EXTREMISTS WHO HAVE KILLED 10 POLICE OFFICERS THIS MONTH ALONE MUSLIM EXTREMISTS WHO WANT TO OVERTHROW THE GOVERNMENT AND INSTALL ISLAMIC RULE HAVE INCREASED THEIR ATTACKS ON EGYPT'S SECURITY FORCES PARTLY TO AVENGE EXECUTIONS AND ALLEGED CASES OF TORTURE MORE THAN 200 PEOPLE HAVE BEEN KILLED IN THE PAST 20 MONTHS AND 15 MILITANTS HAVE BEEN HANGED THOUSANDS OF SUSPECTED EXTREMISTS HAVE BEEN ARRESTED IN THE PAST TWO YEARS AND HUNDREDS FACE TRIAL CHINA'S TOTAL FOREIGNEXCHANGE RESERVES PLUNGED 14 IN THE FIRST HALF TO 384 BILLION THE INTERNATIONAL MONETARY FUND SAID THE DROP REFLECTS A DETERIORATING TRADE BALANCE AND GROWING CAPITAL FLIGHT THE RESERVES FOREIGN CURRENCIES GOVERNMENT SECURITIES AND OTHER INTERNATIONAL BONDS ARE HELD BY THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK AND THE STATEOWNED BANK OF CHINA RESERVES AT THE BANK OF CHINA PLUMMETED 6 BILLION TO 1964 BILLION IN THE LATEST PERIOD THOUGH OVERALL RESERVES ARE STILL SUBSTANTIAL MANY ECONOMISTS AND BANKERS WEIGH THEM IN ASSESSING CHINA'S CREDIT STANDING FURTHER DROPS COULD COST CHINESE BORROWERS HIGHER INTEREST RATES TO COMPENSATE FOR A PERCEIVED HIGHER LENDING RISK THE PLUNGE IN TOTAL RESERVES ATTRACTED LITTLE NOTICE BECAUSE OF A CHANGE IN REPORTING PRODDED BY THE WORLD BANK BEIJING IN JULY 1992 BEGAN EXCLUDING BANK OF CHINA RESERVES AS THESE THEORETICALLY AREN'T STATECONTROLLED PEOPLE'S BANK RESERVES IN THE FIRST HALF FELL A MODERATE 640 MILLION TO 188 BILLION BEIJING THIS YEAR THROUGH AUGUST ATTRACTED 125 MILLION FOREIGN TOURISTS UP 13 FROM A YEAR EARLIER AND THE CITY'S TOURISM REVENUE ROSE 97 TO 700 MILLION A COALITION OF THAI AND FOREIGN BUSINESSES BEGAN A CAMPAIGN TO EDUCATE MANAGERS AND WORKERS ABOUT AIDS WHICH COULD DEVASTATE THAILAND'S COMMERCIAL SECTOR THE GOVERNMENT ESTIMATES AIDS WILL CAUSE ONE IN THREE DEATHS AMONG THAI WORKERS BY THE END OF THIS DECADE 9309290066 930929 ENTERPRISE ROY RAYMOND'S LIFE AND DEATH YIELD GRIM CASE STUDY SUICIDE OF FOUNDER OF VICTORIA'S SECRET FOLLOWED FAILURE TO REGAIN GLORY BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO SIXTEEN YEARS AGO ROY RAYMOND STARTED VICTORIA'S SECRET A VENTURE THAT WOULD AFFECT SUBURBAN CULTURE AND RETAILING ACROSS THE COUNTRY HIS CHAIN OF SEDUCTIVE AND ELEGANT LINGERIE STORES FLOURISHED AS DID A MAILORDER CATALOG IN 1982 MR RAYMOND SOLD THE BUSINESS TO LIMITED INC WHICH MADE THE CONCEPT A BILLIONDOLLAR SUCCESS BY FILLING MALLS WITH FRILLY UNDERWEAR BOUTIQUES ALTHOUGH MR RAYMOND'S NEXT ENDEAVOR AN UPSCALE CHILDREN'S STORE PLUNGED HIM INTO BANKRUPTCY PROCEEDINGS HE KEPT POURING ENERGY INTO ONE IDEA AFTER ANOTHER A CHILDREN'S BOOKSTORE A MAILORDER HARDWARE BUSINESS A FASHION COMPANY FOR WOMEN WITH CANCER YET NONE DUPLICATED HIS EARLY SUCCESS OUTWARDLY HE WAS STOIC BUT SOMEWHERE IN THE DEPTHS OF HIS SOUL THE 47YEAROLD MR RAYMOND WAS IN ANGUISH SHORTLY BEFORE DAWN ON AUG 26 HE PARKED HIS CAR ON THE GOLDEN GATE BRIDGE AND LEAPT TO HIS DEATH MR RAYMOND'S STORY IS THE CLASSIC TALE OF COUNTLESS AMBITIOUS ENTREPRENEURS THEY SCORE A HUGE BUSINESS SUCCESS AT A YOUNG AGE AND THEN BECOME FRUSTRATED WHEN THEY FAIL TO PERFORM AN ENCORE IN TRYING TO RECAPTURE HIS INITIAL GLORY MR RAYMOND SACRIFICED HIS FORTUNE HIS HOME HIS WIFE AND ULTIMATELY HIS OWN LIFE AN ENTREPRENEUR ALWAYS THINKS SUCCESS IS RIGHT AROUND THE CORNER OBSERVES BARRY REDER AN ATTORNEY AND FRIEND OF MR RAYMOND PAINFULLY SHY BUT WARM TO HIS FRIENDS MR RAYMOND STARTED HIS FIRST ENTERPRISE A NEIGHBORHOOD PRINTING SERVICE AT AGE 13 AFTER RECEIVING HIS MBA DEGREE FROM STANFORD UNIVERSITY IN 1971 HE HELD MANAGERIAL POSTS AT SOME LARGE COMPANIES IN 1977 MR RAYMOND BORROWED 40000 FROM HIS PARENTS AND 40000 FROM A BANK TO OPEN THE FIRST VICTORIA'S SECRET IN PALO ALTO HIS WIFE SEWED THE DRESSING ROOM CURTAINS AWASH IN SOFT PURPLE ROSE LAVENDER AND CREAM COLORS THE BOUTIQUE WAS DISTINCTLY UPSCALE WITH HANDPAINTED SILK ITEMS 2000 CASHMERE ROBES 2500 ANTIQUE ARMOIRES AND BRASS FIXTURES THE 600SQUAREFOOT STORE RAKED IN REVENUE OF 500000 DURING ITS FIRST YEAR A YEAR LATER ANOTHER STORE WAS OPENED IN SAN FRANCISCO THE COMPANY'S 24PAGE CATALOG FILLED WITH PARTIALLY CLAD MODELS SOON BECAME THE MOST WELCOME PIECE OF JUNK MAIL IN ADVERTISING HISTORY BY 1982 HOWEVER MR RAYMOND NEEDED HELP VICTORIA'S SECRET HAD FIVE STORES A 42PAGE MAILORDER CATALOG AND ANNUAL SALES OF ABOUT 6 MILLION BUT THE COMPANY WAS GROWING FASTER THAN IT COULD FIND FINANCING AND PAY ITS BILLS LIMITED A RETAILING BEHEMOTH THAT OWNS SUCH CHAINS AS EXPRESS LIMITED LERNER AND LANE BRYANT CAME TO THE RESCUE THE BIG RETAILER PAID 2 MILLION IN CASH AND STOCK FOR THE STRUGGLING UPSTART THERE WAS NO REASON HE NEEDED TO WORK AGAIN AFTER VICTORIA'S SECRET SAYS MS RAYMOND BUT THAT WOULD HAVE BEEN VERY HARD FOR HIM MR RAYMOND REMAINED A LIMITED CONSULTANT FOR LESS THAN A YEAR HE THEN LAUNCHED MY CHILD'S DESTINY A SAN FRANCISCO STORE WHERE WELLHEELED PARENTS COULD INDULGE THEIR OFFSPRING LOCATED NEAR BUSTLING UNION SQUARE IT FEATURED A KID'S HAIR SALON EXPENSIVE TOYS CLOTHES AND COMPUTERS FOR LITTLE TYKES MR RAYMOND ALSO JUMPED IN WITH A CATALOG AND THEN ANOTHER CATALOG FOR CHILDREN'S SOFTWARE AND YET ANOTHER ONE FOR CHILDREN'S BOOKS MY CHILD'S DESTINY WAS GOING TO BE THE NEXT VICTORIA'S SECRET SAYS JIM MANNIX A FRIEND MR RAYMOND HAD THAT FEELING THAT HE WAS BULLETPROOF AND THAT WHATEVER HE TOUCHED WOULD TURN TO GOLD MR MANNIX ADDS BUT THE NEW STORE NEVER TOOK OFF WITHIN TWO YEARS MR RAYMOND WAS STRUGGLING TO KEEP HIS HEAD ABOVE WATER HE HAD POURED MORE THAN 1 MILLION OF HIS OWN MONEY INTO THE BUSINESS BY THE TIME HE WENT LOOKING FOR INVESTORS THERE WERE NO TAKERS MR RAYMOND NEVER INCORPORATED MY CHILD'S DESTINY A TAXRELATED DECISION THAT LEFT HIM PERSONALLY LIABLE FOR ALL ITS DEBTS ALTHOUGH A GOOD IDEA AT THE TIME IT LOOKS STUPID RIGHT NOW RECALLS MR REDER MR RAYMOND'S ATTORNEY THE RAYMONDS FILED FOR BANKRUPTCY PROTECTION IN 1986 THEY LOST AN ELEGANT VICTORIAN HOME THEIR TWO CARS AND THEIR VACATION HOME NEAR LAKE TAHOE INTEREST AND PENALTIES FROM THE COUPLE'S TAX LIABILITIES KEPT GROWING BUT MR RAYMOND PRESSED ON IN 1987 HE AND TWO PARTNERS STARTED QUINBY'S A CHILDREN'S BOOKSTORE BUT BY THE TIME FINANCIAL BACKERS BOUGHT OUT THE OTHER PARTNERS THREE YEARS LATER MR RAYMOND HAD ALREADY LEFT ANOTHER BIG IDEA HAD FIZZLED FOLLOWING HIS DIVORCE MR RAYMOND WAS OBSESSED WITH BEING SUCCESSFUL AGAIN HIS EXWIFE SAYS HE TRIED ANOTHER ILLFATED VENTURE A MAILORDER HOMEREPAIR HARDWARE BUSINESS WHERE HE ANSWERED PHONES AND PACKED ORDERS IT FAILED IN A YEAR THE ENTREPRENEUR ALSO BEGAN WORKING FOR PEGGY KNIGHT INTERNATIONAL A SMALL SAN FRANCISCO COMPANY THAT MADE WIGS FOR WOMEN WITH HAIR LOSS MR RAYMOND HELPED EXPAND THE CONCEPT TO INCLUDE CLOTHING AND PROSTHETIC DEVICES FOR WOMEN WITH CANCER AND OTHER DISEASES BUT GRADUALLY MR RAYMOND'S OUTLOOK SEEMED TO SOUR HE HAD EXPECTED EACH ONE OF THESE IDEAS TO BE BIG MONEY IDEAS SAYS MR MANNIX HIS FRIEND MR RAYMOND ALSO FELT FINANCIALLY PRESSED AS THE INTERNAL REVENUE SERVICE ATTEMPTED TO GARNISHEE HIS CONSULTING WAGES FOR UNPAID INCOME TAXES A SHORT TIME LATER HE JUMPED TO HIS DEATH I ALWAYS SAID THAT AFTER THE TAXES CLEARED ROY WOULD START ANOTHER BUSINESS SAYS JESS MARZAK MR RAYMOND'S FORMER BROTHERINLAW HE HAD ONE GOOD ONE A BAD ONE THERE WAS A DECENT CHANCE HE WOULD HAVE ANOTHER GOOD ONE AND MAKE HIS MONEY BACK I ALWAYS BELIEVED IT 9309290065 930929 WHAT'S NEWS WORLDWIDE YELTSIN ORDERED RIOT POLICE AND TROOPS TO SEAL OFF THE RUSSIAN PARLIAMENT THE RUSSIAN PRESIDENT IN AN ATTEMPT TO BREAK THE NERVE OF DEFIANT HARDLINE LAWMAKERS ENCAMPED INSIDE PARLIAMENT TOOK TOUGH NEW STEPS TO END A WEEKLONG STANDOFF INTERIOR MINISTRY TROOPS IN HELMETS AND FLAK JACKETS MOVED IN TO PLACE COILS OF RAZOR WIRE AROUND THE PARLIAMENT BUILDING AND AT LEAST 2000 POLICE AND SOLDIERS ARMED WITH ASSAULT RIFLES WERE DEPLOYED NEARBY USING LOUDSPEAKERS THE POLICE TOLD DEFENDERS OF THE BARRICADED BUILDING TO SURRENDER THEIR WEAPONS PARLIAMENT CHAIRMAN KHASBULATOV DONNED A BULLETPROOF VEST UNDER HIS SUIT AND VOWED TO FIGHT TO THE END AGAINST YELTSIN'S FASCIST GOVERNMENT CLINTON SAID HE WANTS TO PLACE A DEFINITE LIMIT ON THE US PEACEKEEPING MISSION IN SOMALIA THE PRESIDENT RETREATING FROM AN ADMINISTRATION POLICY ENUNCIATED LAST MONTH INDICATED THE UN SHOULD RECONSIDER ITS APPROACH TO SOMALIA AND MAP A STRATEGY TO PUT THE AFFAIRS OF SOMALIA BACK IN THE HANDS OF SOMALIS THE SENATE REFUSED TO LIFT A 17YEAROLD BAN ON FEDERALLY FINANCED ABORTIONS FOR POOR WOMEN MARKING A SETBACK FOR ABORTIONRIGHTS SUPPORTERS BY A 5940 VOTE THE SENATORS DEFEATED AN EFFORT TO JETTISON THE RESTRICTIONS AND INSTEAD NARROWLY EASED THEM THE MOVE TO KILL THE LIMITATIONS HAD THE BACKING OF PRESIDENT CLINTON HILLARY RODHAM CLINTON OPENED THE WHITE HOUSE DRIVE FOR HEALTHCARE REFORM ON CAPITOL HILL MRS CLINTON ONLY THE THIRD FIRST LADY EVER TO TESTIFY AT CONGRESSIONAL HEARINGS ACKNOWLEDGED ROOM TO NEGOTIATE BUT INSISTED THAT ACTION MUST BE TAKEN SWIFTLY SEN DONALD RIEGLE ANNOUNCED HE WOULD RETIRE AFTER NEARLY THREE DECADES IN CONGRESS RIEGLE A MICHIGAN DEMOCRAT WHO HEADS THE SENATE BANKING COMMITTEE HAD BEEN TAINTED BY HIS ROLE IN THE KEATING FIVE SAVINGSANDLOAN SCANDAL HIS DECISION OPENS THE WAY FOR PAUL SARBANES TO TAKE OVER THE BANKING PANEL PRESIDENT CLINTON WON HOUSE APPROVAL FOR HIS COMPROMISE DON'T ASK DON'T TELL POLICY TO ALLOW HOMOSEXUALS IN THE MILITARY THE HOUSE VOTE ON THE MEASURE ALREADY PASSED BY THE SENATE WAS 301134 THE HOUSE REJECTED A PROPOSAL TO WEAKEN THE PLAN BY DIRECTING THE MILITARY TO RESUME ASKING RECRUITS IF THEY ARE HOMOSEXUAL BOSNIA'S MUSLIMS INSISTED THAT PEACE COULD ONLY COME WITH THE RETURN OF TERRITORY SEIZED BY FORCE A PREDOMINANTLY MUSLIM CONVENTION OF POLITICIANS INTELLECTUALS AND RELIGIOUS LEADERS ACCEPTED A PLAN TO DIVIDE BOSNIA BUT ONLY ON THE CONDITION THAT SERBS RETURN LAND A SENATE PANEL APPROVED LIFTING RESTRICTIONS ON US AID TO THE PLO CLEARING THE WAY FOR AMERICAN PARTICIPATION IN WEST BANK AND GAZA STRIP DEVELOPMENT PROJECTS THE MEASURE PASSED BY THE FOREIGN RELATIONS COMMITTEE WOULD GIVE PRESIDENT CLINTON UNTIL JAN 1 TO WAIVE LAWS THAT BAN AID FOR THE PALESTINIAN GROUP GEORGIAN LEADER SHEVARDNADZE ESCAPED FROM THE CITY OF SUKHUMI AFTER THE REGIONAL CAPITAL WAS CAPTURED BY ABKHAZIAN SEPARATISTS AND HE ACCUSED THE RUSSIAN MILITARY OF PLOTTING AGAINST HIS GOVERNMENT SPEAKING IN TBILISI THE GEORGIAN CAPITAL HE PROMISED THAT SUKHUMI WOULD BE RECAPTURED A NATURALGAS PIPELINE EXPLODED BENEATH A BUSY HIGHWAY NEAR CARACAS DURING THE MORNING RUSH HOUR ENGULFING A PASSENGER BUS AND CARS IN FLAMES AND KILLING AT LEAST 36 PEOPLE THE PIPELINE APPARENTLY WAS RUPTURED BY A TELEPHONE COMPANY CREW LAYING CABLES VENEZUELAN OFFICIALS SAID THE HOUSE CHANGED ITS RULES TO MAKE PUBLIC LAWMAKERS' PETITIONS AIMED AT FORCING FLOOR VOTES ON LEGISLATION BURIED IN COMMITTEES THE VOTE CAME IN REACTION TO UNUSUAL PUBLIC PRESSURE THE JUSTICE DEPARTMENT WILL SEND 1500 CUBAN INMATES IN FEDERAL PRISONS BACK TO CUBA US OFFICIALS SAID ADDING THAT STEPS HAVE BEEN TAKEN TO GUARD AGAINST RIOTING BY THOSE OPPOSED TO BEING REPATRIATED THE MOVE AFFECTS INMATES WHO HAVE COMPLETED THEIR SENTENCES BUT ARE BEING HELD BECAUSE THEY HAVE BEEN DECLARED DEPORTABLE CUBAN MILITARY CHIEFS ARE PREPARING THEIR FORCES TO ATTACK DISSIDENTS AND CIVILIANS ARE STONING OFFICERS IN HAVANA A CUBAN PILOT SAID IN MIAMI THE AIR FORCE CAPTAIN DEFECTED LAST WEEK BY LANDING AT THE US BASE IN GUANTANAMO CUBA 9309290064 930929 LETTERS TO THE EDITOR AMERICAN EXPRESS PHANTOM' OFFERING YOUR SEPT 2 ARTICLE PHANTOM' LEHMAN STOCK AUGURS AN IPO IMPLIES THAT AMERICAN EXPRESS HAS MADE A DECISION TO UNDERTAKE AN INITIAL PUBLIC OFFERING OF LEHMAN BROTHERS THIS IS NOT THE CASE LEHMAN BROTHERS IS OFFERING PHANTOM STOCK TO ITS SENIOR EMPLOYEES AS PART OF A PLAN THAT IS DESIGNED TO HELP ACHIEVE AMERICAN EXPRESS' LONGSTANDING OBJECTIVE TO GET THE FIRM TO THE POINT WHERE IT CAN SUSTAIN AN A CREDIT RATING ON A STANDALONE BASIS WE BELIEVE THIS PLAN WILL HELP BRING US CLOSER TO OUR OBJECTIVE BY PROVIDING A BROAD GROUP OF LEHMAN BROTHERS EMPLOYEES WITH A SIGNIFICANT STAKE IN THE LONGTERM SUCCESS OF THE FIRM AS WE HAVE SAID IN THE PAST ONCE WE REACH OUR OBJECTIVE FOR LEHMAN BROTHERS WE WILL HAVE SEVERAL ALTERNATIVES INCLUDING AN INITIAL PUBLIC OFFERING A SALE OR KEEPING THE FIRM IN FACT ASERING COMMUNICATION TO EMPLOYEES LEHMAN BROTHERS EXPLICITLY REITERATES THESE ALTERNATIVES WHAT COURSE WE TAKE ONCE WE REACH OUR OBJECTIVE HAS YET TO BE DETERMINED 9309290063 930929 P&G CONTRACT WORKER INDICTED FOR TAPPING INTO FIRM'S COMPUTERS CINCINNATI A MAN WHO WAS HIRED ON CONTRACT BY PROCTER & GAMBLE CO WAS INDICTED BY A HAMILTON COUNTY OHIO GRAND JURY ON THREE FELONY CHARGES INVOLVING UNAUTHORIZED ACCESS TO THE COMPANY'S COMPUTER SYSTEM MATTHEW G DAUGHERTY IS ACCUSED OF ENTERING P&G'S COMPUTER NETWORK AND USING P&GOWNED COMPUTERS WITHOUT THE COMPANY'S AUTHORIZATION BETWEEN MARCH AND JULY ACCORDING TO THE INDICTMENT HAMILTON COUNTY PROSECUTING ATTORNEY JOSEPH T DETERS SAID MR DAUGHERTY WAS ON CONTRACT TO THE CINCINNATI CONSUMER PRODUCTS COMPANY TO DO COMPUTER WORK WHEN HE TAPPED INTO THE COMPANY'S BULLETIN BOARD WITHOUT PERMISSION MR DETERS SAID HE DID NOT KNOW WHAT KIND OF INFORMATION IF ANY MR DAUGHERTY OBTAINED MR DAUGHERTY COULD NOT BE REACHED FOR COMMENT THE INDICTMENT ALLEGES AMONG OTHER THINGS THAT MR DAUGHERTY USED A P&GOWNED LAPTOP COMPUTER AND HARD DRIVE WITHOUT THE COMPANY'S CONSENT BETWEEN JUNE 1 AND JULY 20 AND THAT HE GAINED UNAUTHORIZED ACCESS TO P&G'S REGULATORY AND CLINICAL DEVELOPMENT NETWORK BETWEEN MARCH 2 AND MAY 4 A P&G SPOKESWOMAN DECLINED TO DISCUSS THAT NETWORK AND SAID SHE COULD ONLY CONFIRM THAT MR DAUGHERTY WAS A CONTRACT WORKER FOR P&G AND STATE THE COMPANY IS COOPERATING WITH THE INVESTIGATION 9309290062 930929 CORRECTIONS & AMPLIFICATIONS THE AVERAGE SALARY OF PARTICIPANTS LAST YEAR IN COLUMBIA UNIVERSITY'S EXECUTIVE PROGRAM IN BUSINESS ADMINISTRATION WAS 125000 IN ITS LEADING AND MANAGING PEOPLE EXECUTIVE COURSE 120000 AND IN ITS HUMAN RESOURCE MANAGEMENT EXECUTIVE PROGRAM 80000 FIGURES PROVIDED BY THE UNIVERSITY AND PRINTED IN A CHART IN THE SEPT 10 REPORT ON EXECUTIVE EDUCATION WERE INCORRECT AUTHOR KEN AULETTA DIDN'T DESCRIBE THE DORITOS ZAPTIME SPONSORSHIP OF RIVAL TELEVISION PROGRAMS DURING THE 1992 SUPER BOWL AS A GREAT IDEA WHEN HE APPEARED IN A VIDEOTAPE DISTRIBUTED BY PEPSICO INC'S FRITOLAY UNIT FRIDAY'S ADVERTISING COLUMN ABOUT ADVERTISERPRODUCED VIDEO NEWS RELEASES INDICATED HE HAD MADE SUCH A STATEMENT ON THE TAPE NATIONAL MEDICAL ENTERPRISES INC DISPUTES A CLAIM BY FORMER EXECUTIVE JOHN C BEDROSIAN THAT HE HAS A LEGAL RIGHT TO REMAIN EMPLOYED BY THE COMPANY ON SUBSTANTIALLY THE SAME TERMS AS THOSE OF HIS EMPLOYMENT CONTRACT UNTIL 1999 WHEN HE REACHES THE AGE OF 65 IN A WHO'S NEWS ARTICLE MONDAY ABOUT THE COMPANY'S REMOVAL OF MR BEDROSIAN FROM HIS EXECUTIVE DUTIES THE CLAIM WAS ERRONEOUSLY PRESENTED AS A RIGHT ENDORSED BY THE COMPANY 9309290061 930929 LETTERS TO THE EDITOR BEWARE THE BACKLASH OF HEALTHCARE REFORM THE STEAMROLLER MOVE TOWARD HEALTH CARE REFORM AMAZES AND FRIGHTENS ME IT REVOLVES ENTIRELY AROUND THE ALLOCATION OF COSTS AND DISTRIBUTION OF BENEFITS ALL THE PARTICIPANTS EXCEPT POSSIBLY SEN DANIEL MOYNIHAN APPEAR TO TAKE IT FOR GRANTED THAT WHATEVER SYSTEM IS FINALLY AGREED UPON THOSE TARGETED WILL BEAR THE COSTS AND THE INTENDED BENEFICIARIES WILL INDEED BENEFIT THIS BELIEF IS A CLASSIC EXAMPLE OF HUBRIS WHICH ACCORDING TO THE GREEKS THE GODS INVARIABLY PUNISH IF THE RESTRUCTURING OF HEALTH CARE IS NOT PRECEDED BY A NUMBER OF LARGESCALE MULTIYEAR PILOT PROGRAMS TO TEST DIFFERENT ELEMENTS OF THE SCHEME 10 YEARS FROM NOW WE SHALL LOOK BACK WITH NOSTALGIA AT A SYSTEM THAT COST AS LITTLE AND WORKED AS WELL AS THE ONE WE HAVE NOW 9309290060 930929 SENATE UPHOLDS CURBS ON FEDERAL ABORTION FUNDS VOTE OF 5940 KILLS CHANCE OF EASING LIMITS IN 93 MRS CLINTON TESTIFIES BY DAVID ROGERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE SENATE IN A HARBINGER OF FUTURE BATTLES ON HEALTH CARE AND ABORTION KILLED ANY REMAINING CHANCE THIS YEAR THAT CONGRESS WOULD SUBSTANTIALLY RELAX RESTRICTIONS ON FEDERAL FUNDING FOR MEDICAID ABORTIONS FOR POOR WOMEN THE 5940 VOTE UPHELD HOUSE LANGUAGE PROHIBITING FUNDING EXCEPT IN CASES OF RAPE OR INCEST OR WHEN THE MOTHER'S LIFE IS IN DANGER THE MARGIN WHICH REFLECTS TENSION AMONG ABORTIONRIGHTS LAWMAKERS OVER WHAT LEGISLATIVE STRATEGY TO PURSUE IS SURE TO FUEL EFFORTS BY ANTIABORTION FORCES TO ATTACH RESTRICTIONS TO THE CLINTON ADMINISTRATION'S HEALTH PLAN A POSSIBLE COMPROMISE ENCOURAGED BY THE ADMINISTRATION WAS REJECTED BY DEMOCRATIC WOMEN SENATORS WHO CONTROLLED THE FLOOR DEBATE THE ACTION DEMONSTRATED A SPLIT BETWEEN THE OFTEN MIDDLECLASS CADRE OF THE ABORTIONRIGHTS MOVEMENT AND POOR WOMEN AFFECTED BY MEDICAID RULES THE SENATE VOTE CAME AS HILLARY RODHAM CLINTON IN TESTIMONY RARE FOR A SENIOR WHITE HOUSE FIGURE PERSONALLY DEFENDED THE PRESIDENT'S PLAN BEFORE HOUSE PANELS I KNOW WE WILL DISAGREE SHE TOLD THE WAYS AND MEANS COMMITTEE BUT I HOPE WE CAN AND TRUST WE WILL AGREE ON ONE THING FROM THE OUTSET WHEN OUR WORK IS DONE EVERY AMERICAN WILL RECEIVE A HEALTH SECURITY CARD THAT GUARANTEES A COMPREHENSIVE PACKAGE OF HEALTH BENEFITS THAT CAN NEVER BE TAKEN AWAY UNDER ANY CIRCUMSTANCES AS PROPOSED BY THE ADMINISTRATION THAT BENEFITS PACKAGE WOULD INCLUDE REPRODUCTIVE HEALTH SERVICES BUT IT IS UNCLEAR HOW HARD THE WHITE HOUSE WILL PRESS TO INCLUDE ABORTIONS SPECIFICALLY MR CLINTON'S PLAN WOULD GIVE BROAD FLEXIBILITY TO INDIVIDUAL STATES A POINT MRS CLINTON CONFIRMED IN AN EXCHANGE YESTERDAY WITH WAYS AND MEANS COMMITTEE MEMBER BARBARA KENNELLY D CONN CITING CONVERSATIONS WITH OFFICIALS OF CATHOLIC HOSPITALS MRS CLINTON SAID A CONSCIENCE CLAUSE COULD PERMIT SOME HEALTH PLANS TO DENY COVERAGE FOR ABORTION THE PRESIDENT'S WIFE WENT ON TO SAY SHE DIDN'T THINK ANY STATE HEALTH ALLIANCES WHICH WOULD SERVE AS INSURANCEBUYING POOLS FOR ENTIRE REGIONS COULD FLATLY PROHIBIT ABORTION SERVICES BUT WHERE STATES NOW HAVE CONSTITUTIONALLY PROTECTED REGULATIONS THAT GOVERN ABORTION SHE SAID THESE WOULD BE ABIDED BY I THINK WHAT WE'RE ATTEMPTING TO DO IS TO PROVIDE THE SAME KIND OF ACCESS TO PREGNANCYRELATED SERVICES THAT IS CURRENTLY IN FORCE NOW MRS CLINTON SAID ANTIABORTION FORCES ARGUE THOUGH THAT MILLIONS OF WOMEN WHO QUALIFY FOR MEDICAID OR ARE UNINSURED WOULD QUALIFY FOR ABORTION FUNDING UNLESS THE CURRENT FEDERAL MEDICAID RESTRICTIONS WHICH HAVE BEEN INCORPORATED BY MANY STATES ARE CONTINUED ADMINISTRATION OFFICIALS LAST NIGHT DESCRIBED THE SENATE VOTE AS A SETBACK BUT SAID THE RESTRICTIONS MUST FADE IF THE PRESIDENT'S PLAN IS TO TREAT ALL CITIZENS ALIKE NONETHELESS THE LOPSIDED VOTE IN THE SENATE WHICH FOLLOWED A 256171 VOTE IN THE HOUSE IN JUNE TO RETAIN MEDICAID ABORTION RESTRICTIONS DEMONSTRATE HOW SENSITIVE THE ISSUE OF PUBLIC FUNDING FOR ABORTIONS REMAINS THE VOTES CAME EVEN THOUGH ABORTIONRIGHTS ADVOCATES HAVE PRESSED SUCCESSFULLY FOR REPEAL OF SIMILAR ABORTION RESTRICTIONS IN THE HEALTH INSURANCE PLAN FOR FEDERAL EMPLOYEES DEMOCRATIC WOMEN SENATORS ARGUED THAT THE VOTE REPRESENTED A NEW BENCHMARK TO MEASURE TRUE PROCHOICE SENTIMENT BUT BY REJECTING A MORE INCREMENTAL APPROACH THAT WOULD HAVE RELAXED RESTRICTIONS PARTIALLY RATHER THAN REMOVING THEM COMPLETELY THEY OPENED THEMSELVES TO THE CHARGE THEY PURSUED A LOST CAUSE THE ADMINISTRATION LAST NIGHT PLAYED DOWN ANY SPLIT AMONG ABORTIONRIGHTS ADVOCATES BUT THE RISK FOR THE WHITE HOUSE IS THAT THE VOTE HAS GIVEN RENEWED MOMENTUM TO ANTIABORTION FORCES IN CONTRAST WITH THE SKIRMISHING OVER ABORTION MRS CLINTON'S APPEARANCES YESTERDAY REPRESENTED A TOUR DE FORCE WITH THE FIRST LADY WINNING A POLITE AND RESPECTFUL HEARING AND EVEN APPLAUSE FROM THE 38MEMBER WAYS AND MEANS PANEL THOUGH OTHER FIRST LADIES HAVE TESTIFIED BEFORE CONGRESS ELEANOR ROOSEVELT ADDRESSED THE PLIGHT OF WELFARE INSTITUTIONS IN THE DISTRICT OF COLUMBIA AND ROSALYNN CARTER SPOKE ON FUNDING FOR MENTAL HEALTH FACILITIES MRS CLINTON APPEARED AS THE CHIEF ARCHITECT OF THE MOST SWEEPING SOCIAL INITIATIVE SINCE THE NEW DEAL THEN SHE SAT FOR FOUR HOURS AND ANSWERED THE MOST DETAILED QUESTIONS WITHOUT ONCE TURNING TO AIDES FOR ASSISTANCE AMONG OTHER THINGS MRS CLINTON CLARIFIED ONE CONCERN OF MANY LAWMAKERS AND OTHERS ALTHOUGH THE PRESIDENT'S PLAN WOULD REQUIRE PEOPLE TO OBTAIN COVERAGE THROUGH THE LARGE HEALTH ALLIANCES PEOPLE WOULD BE ALLOWED TO GO TO FACILITIES AND SPECIALISTS OUT OF STATE SHE SAID YOU SHOULD HAVE THE OPTION TO PICK A SPECIALIST OUTSIDE THE NETWORK A PERSON IS ENROLLED IN SHE SAID BUT SHE ADDED THAT THE ADMINISTRATION IS LIKELY TO IMPOSE SOME QUALIFICATIONS THE FACILITY SHOULD BE ONE OF HIGH REPUTE LIKE THE RENOWNED MAYO CLINIC IN MINNESOTA OR AN ACADEMIC HEALTH CENTER 9309290059 930902 PHANTOM' LEHMAN STOCK AUGURS AN IPO BY ALEXANDRA PEERS AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK LEHMAN BROTHERS INC IS PAVING THE WAY FOR GOING PUBLIC WITH A 6 MILLION DOLLAR OFFER TO SENIOR EXECUTIVES TO SWAP PART OF THEIR 1993 COMPENSATION FOR PHANTOM LEHMAN STOCK THAT WOULD LATER CONVERT TO REAL SHARES LEHMAN CURRENTLY A UNIT OF AMERICAN EXPRESS CO HAS BEEN DANCING AROUND THE IDEA OF GOING PUBLIC FOR YEARS BUT AN INTERNAL MEMO FROM PRESIDENT RICHARD FULD DISTRIBUTED TO ALL EMPLOYEES MAKES AN INITIAL PUBLIC OFFERING ALL BUT CERTAIN SENIOR MANAGEMENT OR ABOUT 10 OF THE INVESTMENT BANK'S 9000 WORK FORCE WAS OFFERED SHARES IN A 6 MILLION PRIVATE PLACEMENT OF PHANTOM LEHMAN STOCK IN LIEU OF PART OF THEIR 1993 BONUS THEY CAN ASSIGN AS MUCH AS 25 OF THEIR TOTAL COMPENSATION TO THE PHANTOM STOCK WITH HIGHER PAID EXECUTIVES GETTING A BIGGER SLICE OF THE PIE ON WALL STREET THE ANNUAL BONUS CONSTITUTES THE LION'S SHARE OF AN EXECUTIVE'S SALARY PHANTOM STOCK IS AN EXECUTIVE BENEFIT THAT PAYS OFF IN RELATION TO THE COMPANY'S PERFORMANCE AND IN THIS CASE THE POSSIBILITY OF A PUBLIC STOCK OFFERING LEHMAN VALUES ITS PHANTOM SHARES AT 10 EACH IT COULD CONVERT THEM ONEFORONE INTO REAL SHARES PROBABLY AT A HIGHER PRICE IF AND WHEN THE COMPANY GOES PUBLIC THE POTENTIAL RETURN TO LEHMAN EXECUTIVES IF THE COMPANY GOES PUBLIC IS SO MUCH GREATER THAN IF IT DOESN'T AS TO VIRTUALLY ASSURE THAT IT WILL ACCORDING TO PEOPLE CLOSE TO THE FIRM BUT THAT MOVE REQUIRES THE PERMISSION OF THE COMPANY'S PARENT AMERICAN EXPRESS OFFICIALS OF LEHMAN DECLINED TO COMMENT IN ITS OFFERING DOCUMENTS LEHMAN HINTS HOW IT MIGHT VALUE ITS SHARES IF IT SOLD THEM TO OUTSIDE INVESTORS ACCORDING TO THE DOCUMENTS THE FIRM WOULD HAVE ABOUT 165 MILLION SHARES OUTSTANDING AFTER AN INITIAL PUBLIC OFFERING GIVEN LEHMAN'S STATED GOAL OF RAISING 600 MILLION IN EQUITY CAPITAL TO OPERATE INDEPENDENTLY THOSE SHARES WOULD BE VALUED AT ABOUT 13 TO 14 EACH THAT PRICE WOULD MEAN A PROFIT TO LEHMAN INSIDERS OF ABOUT 33 ON THE PHANTOM STOCK AND A MARKET CAPITALIZATION OF LEHMAN AT 225 BILLION BUT THAT VALUATION ASSUMES THAT WALL STREET CONTINUES BOOMING THE MATH IS BASED ON DOUBLING LEHMAN'S FIRSTHALF NET INCOME OF 150 MILLION FOR THE YEAR WHICH IS AN ASSUMPTION THAT THE SECOND HALF WILL BE AS GOOD THAT WAS THE BEST TWO QUARTERS THE INDUSTRY HAS SEEN NOTED GUY MOSZKOWSKI ANALYST AT SANFORD C BERNSTEIN BUT HE AGREED THAT THE VALUATION ISN'T UNREASONABLE IF LEHMAN SUCCEEDS IN ITS CURRENT COSTCUTTING PROGRAM MERRILL AND MORGAN STANLEY TRADE AT TWICE BOOK VALUE SAID MR MOSZKOWSKI BUT THIS IS A COMPANY ABOUT WHICH THERE COULD BE MORE QUESTION MARKS LEHMAN'S REPORTED BOOK VALUE OR TANGIBLE NET WORTH STOOD AT 17 BILLION AT THE END OF THE SECOND QUARTER THE PRIVATE PLACEMENT IS SET TO BE FINALIZED JAN 1 BUT EXECUTIVES MUST DECIDE BY THE END OF THIS MONTH WHETHER THEY WISH TO PARTICIPATE FOR ALL BUT THE HIGHEST EXECUTIVES THE PLAN IS VOLUNTARY AND VESTS IMMEDIATELY ON THE DATE OF THE BONUS GRANTS WHICH IS LATE FEBRUARY FOR TOP MANAGEMENT SUCH AS MR FULD THE PHANTOM STOCK COMPENSATION IS MANDATORY AND BECAUSE IT DOESN'T VEST IMMEDIATELY IT BECOMES A GOLDEN HANDCUFF BUT THE CLOCK IS TICKING IN ORDER TO GO PUBLIC BEFORE THE INEVITABLE BUST OF WALL STREET'S UNDERWRITING BOOM ALREADY 2 1/2 YEARS OLD LEHMAN HAS AT MOST A YEAR TO PROVE IT CAN FLY SOLO AGAIN AFTER BEING PART OF ANOTHER FIRM SINCE 1984 IF LEHMAN DOESN'T GO PUBLIC FOR WHATEVER REASON THE PHANTOM STOCK CAN BE REDEEMED BY EXECUTIVES IN FOUR YEARS FOR ITS PURCHASE VALUE PLUS APPRECIATION BASED ON THE COMPANY'S PERFORMANCE LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO IS OFFERING SENIOR EXECUTIVES THE OPPORTUNITY TO SWAP PART OF THEIR 1993 BONUS FOR SIX MILLION SHARES IN A 60 MILLION PRIVATE PLACEMENT OF PHANTOM LEHMAN STOCK AN ARTICLE YESTERDAY INCORRECTLY GAVE THE VALUE OF THE PRIVATE PLACEMENT AS 6 MILLION SEE RELATED LETTER LETTERS TO THE EDITOR AMERICAN EXPRESS PHANTOM OFFERING' WSJ SEPT 29 1993 9309020007 YY93 MM09 9309290058 930929 CORRECTION IN A RECENT EDITORIAL CSPAN CHAOS SEPT 21 WE REFERRED TO CALSPAN AS A STATESPONSORED NETWORK CATERING TO CALIFORNIA'S LEGISLATORS WE STAND CORRECTED THE INDEPENDENT NETWORK IS NOW CALLED THE CALIFORNIA CHANNEL AND GETS ITS FUNDING FROM CORPORATIONS AND FOUNDATIONS NOT THE STATE 9309290056 930929 WHITE HOUSE AND AUTO MAKERS PREPARE JOINT EFFORT TO TRIPLE FUEL EFFICIENCY BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION AND THE BIG THREE AUTO MAKERS PLAN TO UNVEIL TODAY A JOINT RESEARCH PROGRAM TO TRIPLE THE FUEL EFFICIENCY OF US AUTOS TO AN AVERAGE OF ABOUT 80 MILES PER GALLON OVER THE NEXT DECADE VICE PRESIDENT AL GORE LIKENED THE PROJECT TO THE APOLLO LUNAR PROGRAM FOR ITS SCOPE AND TECHNOLOGICAL DARING WE'RE TAKING A CLEAN SHEET OF PAPER AND WRITING THE GOAL WITHOUT PREJUDGING WHICH TECHNOLOGIES WILL BE CHOSEN HE SAID BUT UNLIKE WITH APOLLO ON WHICH THE US SPENT 25 BILLION BEFORE NEIL ARMSTRONG WALKED ON THE MOON THE FEDERAL GOVERNMENT WON'T COMMIT NEW FUNDS TO THE EFFORT MR GORE SAID INSTEAD IT WILL REDIRECT SOME OF THE SEVERAL HUNDRED MILLION DOLLARS A YEAR IT SPENDS ON AUTO RESEARCH THE AUTO INDUSTRY AND FEDERAL SCIENTIFIC ESTABLISHMENT WILL JOINTLY NAME TEAMS OF SCIENTISTS TO IDENTIFY RESEARCH PROJECTS ESTABLISH PRIORITIES AND SET FUNDING THE AUTO INDUSTRY HAS A DECIDEDLY MIXED RECORD IN JOINT RESEARCH EFFORTS CHRYSLER CORP RECENTLY SAID IT DIDN'T INTEND TO COLLABORATE WITH GENERAL MOTORS CORP AND FORD MOTOR CO IN WHAT WAS ONCE PORTRAYED AS A JOINT EFFORT BY THE BIG THREE TO PRODUCE AN ELECTRIC CAR BUT THE THREE COMPANIES CONTINUE TO COOPERATE ON RESEARCH EFFORTS THROUGH THE US ADVANCED BATTERY CONSORTIUM WHICH GETS FUNDING FROM THE AUTO MAKERS UTILITY COMPANIES AND THE FEDERAL GOVERNMENT IN THE FUELEFFICIENCY EFFORT FUNDING OF INDIVIDUAL PROJECTS WILL BE SPLIT BETWEEN THE FEDERAL GOVERNMENT AND PRIVATE INDUSTRY WITH THE LATTER EXPECTED TO FINANCE A GREATER PERCENTAGE OF PROJECTS WITH NEARTERM MARKET APPLICATIONS AND FEDERAL FUNDS FLOWING MORE HEAVILY TO LONGERTERM RISKIER EFFORTS THE PLAN ORIGINATED WITH MR CLINTON'S TECHNOLOGY PROGRAM ANNOUNCED IN FEBRUARY IN WHICH THE NEW ADMINISTRATION SAID IT WOULD TRY TO DEVELOP A GENERATION OF SOCALLED CLEAN CARS MR GORE SINCE HAS BEEN NEGOTIATING WITH THE AUTO MAKERS WHICH PRIVATELY HAD RESISTED HIS EFFORTS TO GET THEM TO ADOPT THE GOAL OF TRIPLING FUEL EFFICIENCY TO ABOUT 80 MILES PER GALLON FROM THE 275 MPG STANDARD DOUGLAS FRASER FORMER PRESIDENT OF THE UNITED AUTO WORKERS DISMISSED THE GOAL AS A TECHNOLOGICAL IMPOSSIBILITY BUT MR GORE MAINTAINED THAT THE PROGRAM'S AMBITIOUSNESS WOULD INSPIRE DEVELOPMENT OF INNOVATIVE TECHNOLOGIES THE GOAL IS CONSCIOUSLY SET BEYOND THE LIMITS OF WHAT WE KNOW HOW TO DO THE VICE PRESIDENT SAID THE CLEANCAR PROJECT WILL EMPHASIZE THREE AREAS OF RESEARCH ADVANCED MANUFACTURING TECHNIQUES TO RAPIDLY DESIGN AND TEST AUTOMATION SYSTEMS TECHNOLOGIES TO IMPROVE AUTO EFFICIENCY INCLUDING LIGHTWEIGHT MATERIALS AND CHEMICALS TO REDUCE EXHAUST POLLUTION AND PROTOTYPE VEHICLES CAPABLE OF THREE TIMES GREATER FUEL EFFICIENCY THE VEHICLES WILL BE COMPARABLE IN SIZE TO TODAY'S CARS BUT COULD USE FUEL CELLS OR ADVANCED ENERGY STORAGE SYSTEMS RATHER THAN CONVENTIONAL ENGINES ANY BIG NEW RESEARCH PROJECT MUST CONTEND WITH THE GOVERNMENT'S HISTORY OF BACKING TECHNOLOGICAL LOSERS AND POURING BILLIONS OF DOLLARS INTO THEM BECAUSE THEY DEVELOP A CONSTITUENCY IN CONGRESS AND IN INDUSTRY THE CLEANCAR PROJECT SEEKS TO GUARD AGAINST THAT PROBLEM BY REQUIRING INDUSTRY TO PUT UP A BIG PERCENTAGE OF THE MONEY AND BY USING INDUSTRYGOVERNMENT PANELS TO APPROVE WORTHY PROJECTS AN INTERAGENCY TASK FORCE HEADED BY MARY GOOD UNDERSECRETARY OF COMMERCE WILL OVERSEE THE PROJECT THE GROUP WILL INCLUDE THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE ENERGY AND DEFENSE DEPARTMENTS AND THE ENVIRONMENTAL PROTECTION AGENCY AMONG OTHERS 9309290055 930929 INTERNATIONAL GERMAN INDUSTRY GROUP CANCELS WAGE PACT PREEMPTING UNION EMPLOYERS SEEK TO RESCIND SOME VACATION BENEFITS AS COMPETITIVENESS SLIPS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMANY'S HEAVYINDUSTRY ASSOCIATION CANCELED A WESTERN GERMAN WAGE PACT FOR THE FIRST TIME IN ITS HISTORY RILING LABOR LEADERS WITH A SHOW OF NEW DETERMINATION TO REGAIN COMPETITIVENESS THE ANNOUNCEMENT BY THE GESAMTMETALL EMPLOYERS' ASSOCIATION CAUSED A STIR BECAUSE IT BROKE PRECEDENT PREVIOUSLY THE IG METALL METALWORKERS UNION HAD CANCELED WAGE PACTS AT THE FIRST POSSIBLE RENEGOTIATION DATE WHICH IN THIS CASE IS DEC 31 BY PREEMPTING THE UNION INDUSTRY SAID IT WANTED TO SEND A SIGNAL THE SITUATION IS SERIOUS EVEN DRAMATIC SAID GESAMTMETALL PRESIDENT HANSJOACHIM GOTTSCHOL IN A STATEMENT DISTRIBUTED IN COLOGNE THE 1994 CONTRACT TALKS COULD PLAY A DECIDING ROLE IN GERMANY'S INDUSTRIAL FUTURE HE SAID REACHED THOUGH COLLECTIVE BARGAINING GESAMTMETALL'S LABOR AGREEMENTS COVER WAGES TRAINING PROGRAMS VACATION DAYS AND THE VACATION MONEY PAID TO WORKERS TO HELP FUND THEIR HOLIDAYS THE CONTRACTS WITH IG METALL COVER GERMANY'S AUTOMOTIVE METAL ELECTRICAL ELECTRONICS AND MACHINERY SECTORS GESAMTMETALL'S MR GOTTSCHOL SAID EMPLOYERS WILL BE LOOKING TO RESCIND SOME OF THE GENEROUS PROVISIONS FOR WORKER'S AVERAGE SIXWEEK VACATIONS DURING WHICH THEY RECEIVE FULL PAY AS WELL AS A VACATION BONUS AMOUNTING TO HALF A MONTH'S PAY IG METALL WAS QUICK TO REACT UNION CHAIRMAN KLAUS ZWICKEL SAID IN A RADIO INTERVIEW THAT THE EMPLOYERS HAD CHOSEN A CONFRONTATIONAL COURSE WITH LABOR ADDING THAT EMPLOYERS WANT LABOR TO PAY BOTH WAYS TO GET INDUSTRY OUT OF ITS CRISIS ONCE BY THE LOSS OF JOBS AND A SECOND TIME BY THE LOSS OF INCOME THE INDUSTRY'S ACTION IS PART OF A BROADER ATTEMPT TO OVERHAUL GERMAN SOCIAL STRUCTURES THAT ECONOMISTS SAY THE COUNTRY CAN'T AFFORD IT RUNS PARALLEL TO POLITICALLY RISKY PROPOSALS BY THE GOVERNMENT TO DILUTE COSTLY SOCIAL SECURITY PROGRAMS TO HELP TRIM FISCAL DEFICITS BLOATED BY THE COSTS OF GERMAN UNIFICATION GERMANY'S GENEROUS WAGES AND BENEFITS AND FLAGGING PRODUCTIVITY HAVE MADE GERMAN LABOR COSTS THE HIGHEST IN THE WORLD 25 HIGHER THAN IN THE US AND ABOUT A THIRD HIGHER THAN IN JAPAN THE INDUSTRY SAYS COMPETITION FROM LOWCOST PRODUCERS IN ASIA AND THE EMERGENCE OF EASTERN EUROPEAN INDUSTRY RAISE NEW THREATS TO EUROPE'S LARGEST ECONOMY IN EASTERN EUROPE MANUFACTURING WORKERS EARN LESS THAN 150 AN HOUR ON AVERAGE COMPARED WITH 2689 IN WESTERN GERMANY OF WHICH BENEFITS ACCOUNT FOR 1247 EMPLOYERS SAY SOLVING GERMANY'S WORSENING JOB CRISIS MEANS FIRST MAKING THE COUNTRY MORE COMPETITIVE GERMANY'S HIGH WAGES ARE NO LONGER JUSTIFIED BY PRODUCTIVITY WHICH THEY CLAIM FELL 2 IN THE FIRST HALF AS PRODUCTION DROPPED FASTER THAN INDUSTRY COULD LAY OFF WORKERS BLUECHIP COMPANIES SUCH AS DAIMLERBENZ AG AND THYSSEN AG HAVE BEEN SHEDDING TENS OF THOUSANDS OF JOBS IDLING CAPACITY OR SHIFTING PRODUCTION ABROAD AS RECESSION ADDED TO COSTS CRIPPLING THEIR ABILITY TO COMPETE AT HOME AND ABROAD MEANWHILE HANS PETER STIHL PRESIDENT OF THE GERMAN CHAMBER OF INDUSTRY AND TRADE URGED A WAGE FREEZE AND MORE PARTTIME WORK TO HALT JOB EROSION MR STIHL SAID UNIONS MUST REALIZE THAT UNREALISTIC WAGE DEMANDS WILL FORCE COMPANIES TO CUT EVEN MORE JOBS 9309290054 930929 REVIEW & OUTLOOK EDITORIAL RIEGLE'S RUN AT THE RTC READING ON THE SENATE FLOOR YESTERDAY FROM NOTES SCRIBBLED ON A LEGAL PAD ARCHKEATING FIVER DONALD RIEGLE ANNOUNCED THAT HE WOULD NO LONGER GRACE THAT AUGUST BODY WITH HIS PRESENCE ALL OF A SUDDEN HE'S RETIRING A DOWNCAST FRESHMAN SENATOR CAROL MOSELEYBRAUN ANNOUNCED IT'S ALWAYS A SADNESS WHEN A CHAMPION DECIDES NOT TO REENTER THE RACE PERHAPS THE CHAMPION WILL NOW TURN OVER THE CHAIRMANSHIP OF THE BANKING COMMITTEE TO SOMEONE SERIOUS ARGUABLY NO SINGLE ACT MORE DAMNED THE AMERICAN ECONOMY THAN THE FIRREA LEGISLATION THAT SPAWNED THE RESOLUTION TRUST CORP IN 1989 AND THE WHOLE SAVINGS AND LOAN CLEANUP BUT THE CONGRESSIONAL OVERLORDS SUCH AS SENATOR RIEGLE WHOSE ACTIONS UNLEASHED THE EXCESSES AND THEN TRIGGERED THE CREDIT CRUNCH GRIND ON SOME OF THE MORE CONSPICUOUS MEMBERS OF CONGRESS HAVE BECOME UPSET WITH THEIR BABY ISSUING GRAND PRONOUNCEMENTS ABOUT RTC MISMANAGEMENT AND POLITICAL STRINGPULLING NO ONE WOULD DOUBT THAT GROUNDS EXIST FOR MANY COMPLAINTS ABOUT THE RTC A HODGEPODGE ORGANIZATION IF EVER THERE WAS ONE BUT TO HEAR THE CAVILING FROM SENATOR RIEGLE D KEATING FIVE AND HOWARD METZENBAUM D FINDER'S FEE IS TOO MUCH THE POLITICIANS WHO AGGRAVATED THE THRIFT CRISIS AND THE RTC TAR BABY NEED EACH OTHER FOR THE DISGRACED SENATOR RIEGLE AND EVEN FOR A LESSER CULPRIT SUCH AS SENATOR JOHN KERRY WHO ONCE FISHED FOR CONTRIBUTIONS IN DAVID PAUL'S FLORIDA WATERS FLOGGING RESOLUTION TRUST IS PERPETUAL EXPIATION FOR REP HENRY GONZALES IT IS ANOTHER WINDMILL TO SLAY FOR SOME LAWYERS AT RTC THE THRASHING FROM CAPITOL HILL IS INCENTIVE TO WIDEN A LITIGIOUS DRAGNET THAT HAS PROVED TO BE ANOTHER HIT ON THE US TREASURY AND DRAWN REPUDIATIONS FROM THE FEDERAL BENCH THE RTC AND ITS SISTER AGENCY FOR COMMERCIAL BANKS THE FDIC PURSUE DIRECTORS OFFICERS OR ADVISERS ABOUT HALF THE TIME AN INSTITUTION FAILS ALLEGING PROFESSIONAL LIABILITY THIS CAN BE DOUBLY OFFENSIVE WHEN AS WE ILLUSTRATED LAST FRIDAY THE FAILURE IS TRIGGERED BY THE GOVERNMENT'S RENEGING ON AGREEMENTS WITH LENDERS ALL THE WHILE THIS WASTE AND INJUSTICE GOES ON SENATORS RIEGLE AND METZENBAUM DEMAND TO KNOW WHY MORE SUITS AREN'T FILED UNHAPPY RTC STAFF ATTORNEYS ATTRACT MEDIA NOTICE EVEN IF THEY CAN'T CONVINCE THE GAO OF THEIR CLAIMS OF HOMEOFFICE INTERFERENCE AMID ALL THIS THE RTC CAN'T GET SENATOR RIEGLE & CO TO HOLD HEARINGS ON PRESIDENT CLINTON'S NOMINEE TO RUN THE AGENCY AND STANLEY TATE THE FLORIDA REAL ESTATE PRO WHO AGREED TO TAKE ON THE CLOSEOUT ASSIGNMENT IS GETTING PERTURBED COMMITTEE DEMOCRATS SAY THEY NEED TO GET TO THE BOTTOM OF THE RTC MUCK FIRST WHICH APPARENTLY MEANS INVESTIGATING BUSHAPPOINTED RTC HEAD ALBERT CASEY FOR ALLEGED IMPROPRIETIES WE SUSPECT THE FORMER TOP AMERICAN AIRLINES EXECUTIVE'S BIGGEST IMPROPRIETY WAS TRYING TO IMPOSE SOME JUDGMENT ON THE PLACE MEANWHILE TO MAKE THIS LUDICROUS SAGA WORSE AN 186 BILLIONPLUS SENDOFF FUNDING FOR THE RTC AWAITS A CONFERENCE COMMITTEE ACCORDING TO VIC SIMON EDITOR OF THE BANK BAILOUT NEWS THE AGENCY NEEDS LESS THAN A THIRD OF THAT AMOUNT TO ATTEND TO THE THRIFT CLOSURES IN THE RTC'S FINAL FEW YEARS FORTUITOUS CIRCUMSTANCES A FIRMING OF THE PROPERTY MARKET LOW INTEREST RATES ON DEPOSITS THE SURVIVAL NO THANKS TO WASHINGTON OF HUGE GLENDALE FEDERAL IN CALIFORNIA HAVE LIGHTENED THE LIKELY LOAD MR SIMON CALLS THE HUGE APPROPRIATION A DANGEROUS SORT OF CREDIT CARD ONE IS TEMPTED TO WANT TO DUMP THIS RTC EXERCISE COMPLETELY BUT THAT COULD PROLONG GOVERNMENT CONTROL OF SEIZED ASSETS THAT NEED TO BE RETURNED TO THE MARKETPLACE WITH ALL DUE SPEED ALSO SOME AGENCY CONTRACTORS ACTUALLY ARE TRYING CREATIVE APPROACHES TO LIQUIDATION WHICH PROMISE TO MINIMIZE TAXPAYER LOSSES IF ONLY THE FUNDING MEASURE WOULD STOP THERE INSTEAD CONGRESS PRODUCES WHAT YOU MIGHT CALL THE RTC ENDGAME A BALLOON PAYMENT APPROPRIATION SUPPOSEDLY TO PUT AN END TO THIS FOLLY BUT FIRST A LIMBO PERIOD DURING WHICH THE AGENCY IS BOXED AROUND THE EARS AND ALLOWED TO ABSORB MORE OF THE BLAME THAT IS SO RICHLY SHARED BY THE LEGISLATIVE BRANCH HOW LONG WILL THIS GO ON THROUGH THE '94 ELECTION WE'D EXPECT THAT MR RIEGLE'S POLITICAL DEMISE DIMINISHES THE RTC'S VALUE AS A WHIPPING POST WHEN THE BOOK IS FINALLY CLOSED ON THE DEPOSITINSURANCE DEBACLE OF THE 1980S HOWEVER THE RTC AND ALL ITS COLLATERAL DAMAGE WILL BE BUT A MIDDLE SECTION THE STORY WILL BEGIN AND END WITH THE EXTRAORDINARY REIGNS OF TWO MEN WHO DEFIED PROPRIETY TO THE BITTER END FREDDIE ST GERMAIN OF THE HOUSE WHO WITH HIS MIDNIGHT MANEUVERING SUPPLIED FUEL FOR THIS BONFIRE LONG AGO AND LAMEDUCK DONALD RIEGLE OF THE SENATE WHO IS DETERMINED TO SEE THE LAST OF IT GO UP IN ASH THAT THE UNITED STATES PUT A GOOD PART OF ITS CREDIT APPARATUS AND THEREFORE ITS ECONOMY IN SUCH HANDS IS THE MOST SORRY TWIST OF A LONG AND AWFUL TALE 9309290053 930929 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THE POLLS GENERALLY BEAR GLAD TIDINGS FOR PRESIDENT CLINTON THESE DAYS HIS JOB APPROVAL RATING IS UP AND THE PUBLIC IS IN THE MOOD TO BUY WHAT HE IS SELLING WHICH IS HEALTHCARE REFORM BUT HIDDEN BEHIND THE NUMBERS IS A POTENTIALLY SERIOUS PROBLEM IN THE POLITICALLY VITAL WEST PARTICULARLY IN CALIFORNIA THERE'S FESTERING ECONOMIC INSECURITY AND A STRIKING SENSE OF PESSIMISM THIS POSES A LONGTERM THREAT TO MR CLINTON FOR WHOM THE WEST COAST HAS ENORMOUS POLITICAL IMPORTANCE HE WAS AFTER ALL THE FIRST DEMOCRAT IN 28 YEARS TO CARRY CALIFORNIA IN A PRESIDENTIAL ELECTION AND HE WON THE WHITE HOUSE IN LARGE MEASURE BY SWEEPING THE PACIFIC COAST STATES BY A 12POINT MARGIN BUT THERE'S AN EVEN MORE ACUTE SHORTTERM PROBLEM CALIFORNIA'S ECONOMIC INSECURITY IS HELPING TURN JITTERY DEMOCRATS THERE AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT STATE TREASURER KATHLEEN BROWN THE LEADING CONTENDER FOR NEXT YEAR'S DEMOCRATIC GUBERNATORIAL NOMINATION HAS SPOKEN OUT AGAINST NAFTA AND A QUICK LOOK AT DEMOCRATS IN CALIFORNIA'S 52MEMBER DELEGATION IN THE HOUSE OF REPRESENTATIVES SUGGESTS THAT AT THIS POINT THE LIKELY VOTES AGAINST NAFTA EASILY OUTNUMBER THE SOLID VOTES IN FAVOR THOUGH THE WHITE HOUSE FIGURES MANY ARE STILL UP IN THE AIR ALL THIS SUGGESTS THAT IF MR CLINTON AND THE TEAM HE HAS ASSEMBLED TO SELL NAFTA ARE TO SUCCEED THEY NEED TO FOCUS ENERGY IN CONVINCING CALIFORNIANS THAT THEIR ECONOMY IS REBOUNDING AND THAT NAFTA AND ITS EXPORT OPPORTUNITIES ARE PART OF THE SOLUTION A DECADE AGO CALIFORNIA WOULD HAVE BEEN A BASTION OF THE KIND OF THINKING THAT LIES BEHIND NAFTA PRO FREE TRADE OUTWARD LOOKING AND SYMPATHETIC TO BUILDING STRONGER LINKS TO MEXICO IN PARTICULAR BUT THE MOST POPULOUS STATE HAS BEEN SO BATTERED BY RECESSION REALESTATE SLUMPS DEFENSE CUTBACKS AND VIOLENCE THAT THERE'S LESS WILLINGNESS TO TAKE THE ECONOMIC RISKS THAT GO ALONG WITH A FREETRADE ACCORD THERE IS A SENSE THAT IT'S TOO MUCH ALL AT ONCE FOR THE STATE TO ABSORB SAYS BILL BRADLEY WHO WRITES A COLUMN ABOUT THE STATE'S POLITICS IF IT WERE A DIFFERENT TIME IF THERE WEREN'T SO MANY WAVES OF CHANGE AND CRISIS BATTERING THE STATE ALL AT ONCE IT WOULD BE MORE SALABLE CALIFORNIA'S UNEASE IS EASY TO CHRONICLE A WALL STREET JOURNAL/NBC NEWS POLL THIS MONTH FOR INSTANCE ASKED PEOPLE WHETHER THEY WERE CONFIDENT THAT LIFE WOULD BE BETTER FOR THEIR CHILDREN'S GENERATION NATIONALLY 25 EXPRESSED CONFIDENCE IN THE WEST THOUGH JUST 18 SAID THEY WERE CONFIDENT EASILY THE LOWEST OF ANY REGION IN THE COUNTRY JUST YESTERDAY A NEW CONFERENCE BOARD SURVEY INDICATED THAT PACIFIC COAST CONSUMERS HAVE LESS CONFIDENCE IN THE ECONOMY THAN CONSUMERS IN OTHER REGIONS THIS PESSIMISM IS ROOTED IN REALLIFE PROBLEMS UNEMPLOYMENT IN CALIFORNIA WAS 9 IN AUGUST 23 PERCENTAGE POINTS HIGHER THAN NATIONALLY AND NEARLY TWO PERCENTAGE POINTS HIGHER THAN IN THE STATE AT THE BEGINNING OF 1991 THAT MEANS THERE ARE SOME 300000 MORE CALIFORNIANS ON THE UNEMPLOYMENT ROLLS TODAY THAN TWOANDAHALF YEARS AGO AND IN ITS LATEST SURVEY ON THE ECONOMIC CONDITIONS THE FEDERAL RESERVE BOARD SUMMARIZES THE SITUATION SUCCINCTLY ECONOMIC RECOVERY CONTINUES TO ELUDE CALIFORNIA IN CALIFORNIA WEAKNESS CONTINUES TO BE REPORTED IN A BROAD RANGE OF SECTORS INCLUDING AEROSPACE AND DEFENSERELATED MANUFACTURING TRADE CONSTRUCTION FINANCE AND GOVERNMENT THE ECONOMIC UNCERTAINTIES ARE ACUTE ENOUGH THAT EVEN THOSE WHO THINK THE STATE IS ON THE WAY BACK UP ARE SHYING AWAY FROM NAFTA FEARING THAT ANY POTENTIAL FLIGHT OF JOBS WOULD DRY UP THE FRAGILE ROOTS OF RECOVERY I'M CAUTIOUSLY OPTIMISTIC BECAUSE I SEE SOME SIGNS OF JOB GROWTH SAYS REP JANE HARMAN A FRESHMAN DEMOCRAT FROM LOS ANGELES BUT SHE OPPOSES NAFTA FOR THAT REASON I THINK IT DESTABILIZES THE FRAGILE JOBREBUILDING I'M DESCRIBING THE PROBLEM IS THAT THERE MAY NEVER BE ANOTHER CHANCE TO REVISIT NAFTA WHEN THE JOB PICTURE IS BRIGHTER WHICH IS WHY MR CLINTON NEEDS TO WORK ON PACIFIC COAST ATTITUDES NOW THE PRESIDENT'S AIDES SENSE THIS IT'S NO COINCIDENCE THAT HE APPEARED IN CALIFORNIA IN MIDSEPTEMBER JUST BEFORE HE FORMALLY BEGAN HIS PUSH TO WIN CONGRESSIONAL APPROVAL OF NAFTA BUT IT'S GOING TO TAKE A LOT MORE THAN PRESIDENTIAL DROPBYS IN THE GOLDEN STATE TO TURN AROUND ATTITUDES FOR STARTERS THE WHITE HOUSE INTENDS TO HIT HARD ON THE ARGUMENT THAT IN ADDITION TO CREATING JOBS NAFTA WILL REDUCE ILLEGAL IMMIGRATION INTO THE STATE BY KEEPING MEXICAN WORKERS AT HOME ANOTHER BIG WEAPON AT MR CLINTON'S DISPOSAL IS RAPID FEDERAL FUNDING FOR DEFENSE CONVERSION PROJECTS WHICH CAN HELP KEEP WORKERS ON THE PAYROLL AND CALM JITTERY NERVES DURING A RUGGED TRANSITION PERIOD BUT ABOVE ALL MR CLINTON NEEDS TO SKETCH A VISION IN WHICH CALIFORNIA'S ECONOMIC RECOVERY IS ACHIEVED BY LOOKING BOTH SOUTH TO MEXICO AS A POTENTIALLY GIANT MARKET AND ACROSS THE PACIFIC TO ASIA HE HAS AMPLE TIME TO DO THAT BEFORE THE NEXT PRESIDENTIAL RACE BUT PRECIOUS LITTLE TIME BEFORE THE CRUCIAL NAFTA REFERENDUM 9309290052 930929 TUESDAY'S MARKETS STOCKS MIXED BOND PRICES HOLD STEADY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS WERE MIXED AS INVESTORS CONTINUED TO SWARM TO TECHNOLOGY SHARES BOND PRICES WERE LITTLE CHANGED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 168 POINTS TO 356602 AND THE STANDARD & POOR'S 500STOCK INDEX WAS DOWN 027 TO 46153 BUT THE NASDAQ COMPOSITE INDEX ROSE 371 TO 76366 ITS FOURTH STRAIGHT RECORD THE NASDAQ SEEMS TO BE MARCHING TO THE BEAT OF A DIFFERENT DRUMMER THAN THE BIG BOARD DECLARED GREG RILEY SENIOR OVERTHECOUNTER TRADER AT FIRST BOSTON MR RILEY SAID THAT STRENGTH IN TECHNOLOGY AND HEALTH MAINTENANCE STOCKS HELPED BUOY THE NASDAQ COMPOSITE INDEX US HEALTHCARE SURGED 1 1/2 TO 52 INTEL 2 3/8 TO 72 3/4 AND MICROSOFT 1 3/4 TO 84 SINCE PRESIDENT CLINTON DELIVERED HIS HEALTHCARE ADDRESS LAST WEEK THE UNCERTAINTY SURROUNDING BIOTECHNOLOGY AND OTHER MEDICAL STOCKS HAS LIFTED ATTRACTING BUYERS SAID MR RILEY FOR INSTANCE HE NOTED THAT HEALTHCARE COMPARE GAINED 1 1/8 TO 20 1/4 AND ST JUDE MEDICAL CLIMBED 2 1/4 TO 29 1/2 THE MARKET IS THIRSTING FOR GROWTH AND IT DOESN'T SEE IT IN SOME OF THE BIG DOW NAMES SO IT'S LOOKING TO THE NASDAQ ASSERTED DAVID SHULMAN STOCK STRATEGIST AT SALOMON BROTHERS WITH THE ECONOMY PLODDING ALONG INVESTORS REALIZE THAT MEDIUMSIZE AND SMALL COMPANIES HAVE A BETTER CHANCE OF FINDING NEW MARKETS THAN DO BIG COMPANIES SAID MR SHULMAN WHAT'S MORE MANY BIG COMPANIES ALREADY HAVE INDICATED THAT THEY EXPECT TO DISAPPOINT INVESTORS WHEN THEY START REPORTING THIRDQUARTER EARNINGS NEXT MONTH THE LATEST GUST OF BAD NEWS CAME FROM WARNERLAMBERT WHICH SAID THAT IT EXPECTS ITS THIRDQUARTER PERSHARE EARNINGS TO FALL SHORT OF LAST YEAR'S LEVEL WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 064 TO 11180 IN MAJOR MARKET ACTION STOCK PRICES ENDED MIXED VOLUME TOTALED 2433 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1082 ISSUES ROSE AND 926 FELL BOND PRICES WERE PRACTICALLY UNCHANGED THE TREASURY'S BENCHMARK 30YEAR ISSUE EDGED UP LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 594 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16120 MARKS AND 10490 YEN COMPARED WITH 16290 MARKS AND 10605 YEN MONDAY 9309290051 930929 A SEASON TO SAVOR BY THOMAS D MURRAY IT WAS ONE OF THOSE COOL CLEAR SUNNY DAYS THAT PILOTS REFER TO AMONG THEMSELVES AS SEVERE CLEAR AND WHICH IN LATE AUGUST IS A SIGN OF SUMMER'S END A SALESMAN FOLLOWED ME OUTSIDE HIS STORE TO SAMPLE THE WEATHER WE'D BEEN DISCUSSING IT'S LIKE FALL HE SAID AND THEN AS IF HE WERE ABOUT TO ENTRUST A SECRET TO ME HE HAD NEVER SHARED WITH EVEN HIS CLOSEST CONFIDANT HE ALMOST WHISPERED YOU KNOW FALL IS MY FAVORITE TIME OF YEAR I THINK HE EXPECTED A LOOK OF SURPRISE MAYBE AMAZEMENT BUT CERTAINLY A NO REALLY AND I MIGHT HAVE ACCOMMODATED HIM IF HIS COMMENT WASN'T PART OF A PATTERN WASN'T JUST PILED ON TOP OF MY COLLECTION OF AUTUMNAL PROCLAMATIONS THAT GO BACK AT LEAST 35 YEARS I REMEMBER THAT IT WAS 1958 AND AN ASSOCIATE AND I WERE DRIVING THROUGH THE MICHIGAN COUNTRYSIDE TOP DOWN ON A WARM OCTOBER AFTERNOON WHEN WE STOPPED TO BUY SOME APPLES AS WE GOT OUT AND WALKED ACROSS THE ROAD TO THE STAND MY FRIEND SAID RATHER CONFIDENTIALLY AS THOUGH I MIGHT NOT HAVE PROPER SECURITY CLEARANCE YOU KNOW I THINK FALL IS MY FAVORITE TIME OF THE YEAR IT HAPPENS ALL THE TIME AN ART DIRECTOR AND I WERE SUPERVISING SOME ADVERTISING PHOTOGRAPHY SURROUNDED AS WE WERE BY A NEW ENGLAND AUTUMN AT ITS COLORFUL APOGEE HE TURNED TO ME AND WITH PRIDE IN HIS TONE SAID I THINK THAT I'M PROBABLY DIFFERENT FROM MOST PEOPLE BUT I REALLY LIKE FALL BEST OF ALL AND YEARS LATER WHEN THE TWO OF US WENT ON A FALL VACATION WITH OUR WIVES HE REMINDED ME ON THE GOLF COURSE THAT STRANGE AS IT MIGHT SEEM TO THE REST OF US THIS WAS HIS SEASON I AM INTERESTED ENOUGH IN HUMAN BEHAVIOR TO WANT TO UNDERSTAND WHY PEOPLE SEEM TO REGARD THEIR FEELINGS FOR FALL AS SO UNUSUAL AND SO FAR HAVE ONLY ONE THEORY AT AN EARLY AGE MOST OF US ARE FORCED OR EXPECTED TO SPEND FALLS WINTERS AND SPRINGS LOCKED UP IN CLASSROOMS A PERIOD WHEN THE WORDS SUMMER AND VACATION BECOME WELDED INTO ONE LOVELY NOUN AND EVEN WHEN WE NO LONGER MARCH TO A SCHOOL TIMETABLE THE COOL SUMMER SWIMS OF OUR YOUTH AND THE MEMORY OF WAKING UP TO LONG DELICIOUS DAYS OF FREEDOM MAY HAVE MADE SUMMER AN INDELIBLE LINGERING FAVORITE DIFFICULT TO RENOUNCE BUT LATE WE DISCOVER FALL THE WEATHER MOST OF US WOULD MAKE IF WE COULD DESIGN OUR OWN BRIGHT WARM DAYS IDEAL FOR ALMOST EVERYTHING AND CRISP COOL NIGHTS THAT BRING US TO THE BREAKFAST TABLE BETTER RESTED THAN ANYTIME WE CAN REMEMBER AND ITS PRECIOUSNESS ENHANCES IT MORE FALL IS THE LAST BITE OF THE CANDY BAR THE LAST SAFE STEP BEFORE THE ABYSS OF WINTER SO WE SAVOR PRIZE AND PRICE IT DEARLY ALL OF WHICH IS AS IT SHOULD BE WHAT SHOULDN'T BE ARE ALL THE PEOPLE WHO ARE JUST NOW EMERGING FROM THE STIFLING AIRLESS DAYS OF AUGUST NOT SIMPLY SENSING THE NEW FRESHNESS IN THE LAND BUT ALSO ASSUMING FOR SOME STRANGE AND ELUSIVE REASON THAT THE REST OF US ARE MOURNING THE ABSENCE OF RAINY SPRINGS SIZZLING SUMMERS OR ICY WINTERS AND IMPLYING HOW UNIQUE AND DISCERNING THEY ARE BY STAKING A KIND OF EXCLUSIVE CLAIM TO FALL'S MAGNIFICENCE I NEVER KNOW WHAT TO SAY TO THESE PEOPLE FALL'S MY FAVORITE TIME TOO SEEMS TOO WEAK AND FORGIVING I WONDER IF THERE'S SOME QUIP CHURCHILL MIGHT HAVE USED TO CHASTISE A DINNER PARTNER WHO DISPLAYED WHAT HE OFTEN REFERRED TO AS A MAGNIFICENT GRASP OF THE OBVIOUS SOMETHING LIKE JUST WHAT IS IT THAT YOU LIKE ABOUT GORGEOUS DAYS AND HEAVENLY NIGHTS MR MURRAY IS A WRITER IN MIDDLETOWN OHIO 9309290050 930929 LAW LEGAL BEAT PAUL WEISS TO PAY US 45 MILLION OVER REPRESENTATION OF CENTRUST BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PAUL WEISS RIFKIND WHARTON & GARRISON AGREED TO PAY THE GOVERNMENT 45 MILLION IN CONNECTION WITH ITS REPRESENTATION OF THE FAILED CENTRUST BANK IN THE LATEST BLOW TO A MAJOR LAW FIRM ARISING FROM THE THRIFT DEBACLE MIAMIBASED CENTRUST FAILED IN 1990 AT AN ESTIMATED COST TO TAXPAYERS OF 16 BILLION AND ITS CONTROLLING SHAREHOLDER DAVID PAUL IS FACING CRIMINAL CHARGES THAT HE ALLEGEDLY LOOTED THE INSTITUTION TERMS OF THE SETTLEMENT CALL FOR NEW YORKBASED PAUL WEISS TO PAY 45 MILLION IN RESTITUTION TO THE RESOLUTION TRUST CORP AS RECEIVER FOR CENTRUST THE FIRM ALSO AGREED TO AN ORDER FROM THE OFFICE OF THRIFT SUPERVISION AGREEING TO ADHERE TO WHAT THE GOVERNMENT CALLED A STRINGENT SERIES OF BANKING LAW POLICIES AND PROCEDURES FOR THREE YEARS IN ADDITION A FORMER PARTNER PETER R HAJE WHO SUPERVISED THE REPRESENTATION OF CENTRUST FOR THE FIRM AGREED TO BE ENJOINED FROM REPRESENTING ANY INSURED DEPOSITORY INSTITUTION FOR FIVE YEARS MR HAJE IS CURRENTLY EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF TIME WARNER INC ASIDE FROM ITS SHEER SIZE THE SETTLEMENT IS UNUSUAL IN THAT THE GOVERNMENT HADN'T BROUGHT ANY FORMAL CHARGES AGAINST PAUL WEISS IN COURT MOREOVER IT GIVES THE GOVERNMENT THE RIGHT TO REOPEN THE CASE SHOULD IT DISCOVER FURTHER INFORMATION ABOUT THE ROLE OF THE FIRM IN CENTRUST'S DEMISE THE OTS HAD PUT THE FIRM AND MR HAJE ON NOTICE THAT IT WAS CONSIDERING FILING SUIT BASED ON ALLEGATIONS THAT THEY FAILED TO DISCLOSE IMPORTANT FINANCIAL INFORMATION TO FEDERAL REGULATORS AT THE TIME OF CENTRUST'S FORMATION IN 1983 FOR INSTANCE REGULATORS ACCUSED THE FIRM OF FAILING TO DISCLOSE THAT THE THRIFT HAD AN OBLIGATION TO PURCHASE A 23 MILLION LUXURY YACHT THE QUESTION OF ADEQUATE DISCLOSURE OF INFORMATION TO REGULATORS HAS BEEN CENTRAL TO THE GOVERNMENT'S LEGAL CRACKDOWN ON PROFESSIONALS IN CLEANING UP THE THRIFT MESS THE 350LAWYER FIRM SAID IN AN INTERNAL MEMO THAT IT AGREED TO SETTLE THE CASE TO AVOID YEARS OF COSTLY LITIGATION AND DENIED ANY IMPROPRIETIES MUCH AS WE DISLIKED HAVING TO SETTLE A MATTER WHERE WE BELIEVE WE ARE RIGHT GETTING THIS SITUATION BEHIND US WAS A PRIORITY ACCORDING TO THE STATEMENT WHICH NOTED THAT THE SUM WAS FULLY COVERED BY INSURANCE ROBERT B FISKE JR A LAWYER FOR MR HAJE SAID HIS CLIENT HADN'T ENGAGED IN ANY WRONGDOING AND HE NOTED THAT MR HAJE WASN'T ACCUSED OF ANY INTENTIONAL MISCONDUCT MR FISKE SAID MR HAJE SETTLED TO AVOID PROTRACTED LITIGATION AND THAT THE CONSENT AGREEMENT WOULDN'T HAVE ANY IMPACT ON HIS DUTIES AT TIME WARNER CENTRUST WAS A MAJOR CLIENT OF THE JUNKBOND DEPARTMENT AT DREXEL BURNHAM LAMBERT INC PAUL WEISS SENIOR PARTNER ARTHUR LIMAN SUBSEQUENTLY REPRESENTED FORMER DREXEL JUNK BOND CZAR MICHAEL MILKEN IN A SEPARATE CRIMINAL CASE AGAINST HIM MICHAEL COOPER A LAWYER AT SULLIVAN & CROMWELL WHO REPRESENTED PAUL WEISS IN THE THRIFT SETTLEMENT SAID THE FIRM SAW NO CONFLICT OF INTEREST IN ITS WORK FOR MR MILKEN BECAUSE AS COUNSEL TO CENTRUST IT HADN'T ADVISED THE THRIFT IN ANY OF ITS DEALINGS WITH DREXEL OR MR MILKEN ACCORDING TO GOVERNMENT DOCUMENTS 389 MILLION OF THE SETTLEMENT WAS ALLOCATED TO POTENTIAL DAMAGE CLAIMS AGAINST PAUL WEISS ARISING FROM CENTRUST'S PURCHASE OF CORPORATE BONDS AND HIGHYIELD SECURITIES THE REMAINDER RELATED TO COMPENSATION PAID MR PAUL ARTWORK FOR THE CENTRUST TOWER FEES AND EXPENSES PAID TO PAUL WEISS AND AN EMPLOYEE SAVINGS PLAN THE SETTLEMENT IS ONE OF THE LARGEST THE GOVERNMENT HAS OBTAINED AGAINST A MAJOR LAW FIRM IN CONNECTION WITH REPRESENTING A SINGLE CLIENT THE GOVERNMENT NEGOTIATED A 50 MILLION SETTLEMENT WITH CLEVELAND'S JONES DAY REAVIS & POGUE EARLIER THIS YEAR IN CONNECTION WITH THAT FIRM'S WORK FOR THE DEFUNCT LINCOLN SAVINGS & LOAN ASSOCIATION THE NAVY CAN'T DISCHARGE A LIEUTENANT WHO TOLD HIS COMMANDER HE WAS GAY THE DAY AFTER PRESIDENT CLINTON WAS INAUGURATED A FEDERAL JUDGE RULED US DISTRICT JUDGE LOUIS OBERDORFER OF WASHINGTON DC CITED A RULING EARLIER THIS YEAR BY A FEDERAL JUDGE IN CALIFORNIA THAT STRUCK DOWN THE MILITARY'S BAN AS UNCONSTITUTIONAL THE JUDGE SAID THAT UNDER THE CALIFORNIA RULING HOMOSEXUALS CAN BE DISCHARGED FROM THE MILITARY ONLY IF IT IS SHOWN THAT THEIR CONDUCT INTERFERES WITH THE MILITARY MISSION OF THE ARMED FORCES OF THE US IN THE CASE BEFORE JUDGE OBERDORFER THE MILITARY PRESENTED NO EVIDENCE THAT LT JG RICHARD DIRK SELLAND HAD ENGAGED IN HOMOSEXUAL CONDUCT THE MILITARY ARGUED THAT UNDER THE POLICY AT THAT TIME BEFORE CHANGES ADOPTED BY THE CLINTON ADMINISTRATION A PERSON COULD BE DISCHARGED MERELY FOR STATING THAT HE OR SHE WAS HOMOSEXUAL THE JUDGE NOTED IN HIS DECISION THAT LT SELLAND HAD CONFIDED IN PRIVATE TO HIS COMMANDER AND CHAPLAIN THAT HE WAS GAY APPARENTLY RELYING ON THE PRESIDENT'S PUBLIC STATEMENTS ABOUT HOMOSEXUALS IN THE MILITARY PRESIDENT CLINTON HAD CALLED ON ALLOWING HOMOSEXUALS TO SERVE IN THE MILITARY BUT THE NEW POLICY STILL BARS ANYONE WHO COMMITS A HOMOSEXUAL ACT JUDGE OBERDORFER SAID THE MILITARY WAS PERILOUSLY CLOSE TO BEING IN CONTEMPT OF THE FEDERAL JUDGE'S ORDER IN THE CALIFORNIA CASE JUDGE OBERDORFER SAID THAT RULING WHICH APPLIED NATIONWIDE IS PRESENTLY IF ONLY TEMPORARILY THE LAW OF THE LAND ON THIS SUBJECT ALBERT R KARR CONTRIBUTED TO THIS ARTICLE 9309290049 930929 THOMAS WILL NOT APPEAR BEFORE CONSERVATIVE GROUP WASHINGTON SUPREME COURT JUSTICE CLARENCE THOMAS HAS BACKED OUT OF AN APPEARANCE BEFORE A CONSERVATIVE POLITICAL GROUP AFTER PRESS REPORTS ABOUT THE UNUSUAL ENGAGEMENT JUSTICE THOMAS HAD BEEN SCHEDULED TO APPEAR FRIDAY AT THE ANNUAL CONVENTION OF CONCERNED WOMEN FOR AMERICA AN ORGANIZATION THAT SUPPORTED HIS CONTROVERSIAL NOMINATION TO THE HIGH COURT IN 1991 SUPREME COURT JUSTICES GENERALLY REFRAIN FROM ATTENDING GATHERINGS OF POLITICAL ADVOCACY GROUPS ALTHOUGH JUSTICE THOMAS HAS MADE SOME EXCEPTIONS TO THAT RULE AFTER HIS PLAN TO ATTEND THE CONCERNED WOMEN FOR AMERICA CONFERENCE ATTRACTED PRESS ATTENTION JUSTICE THOMAS SAID THROUGH A COURT SPOKESWOMAN THAT HE WOULDN'T MAKE A SPEECH YESTERDAY THE SPOKESWOMAN SAID HE HAD DECIDED TO CANCEL THE APPEARANCE ALTOGETHER OUT OF CONCERN THAT IT WOULD BE PERCEIVED AS IMPROPER 9309290048 930929 GM'S EDS STOCK DROPS AFTER OFFICIAL'S COMMENTS ELECTRONIC DATA SYSTEMS CORP'S STOCK SLID 59 IN UNUSUALLY HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AFTER COMMENTS FROM THE COMPANY'S CHIEF FINANCIAL OFFICER APPARENTLY DISAPPOINTED ANALYSTS EDS SHARES CLOSED AT 30125 DOWN 1875 ON VOLUME OF MORE THAN 28 MILLION SHARES MORE THAN FOUR TIMES ITS AVERAGE DAILY VOLUME THE GENERAL MOTORS CORP UNIT SAID IT EXPECTS TO RETURN TO DOUBLEDIGIT REVENUE GROWTH IN THE FOURTH QUARTER THAT PROJECTION MADE BY THE UNIT'S CHIEF FINANCIAL OFFICER JOSEPH M JODY GRANT AT AN ANALYSTS' DINNER IN NEW YORK MONDAY NIGHT APPARENTLY DISAPPOINTED ANALYSTS WHO HAD INTERPRETED EARLIER STATEMENTS TO INDICATE THE COMPANY WOULD RETURN TO DOUBLEDIGIT GROWTH IN THE THIRD QUARTER THE COMPANY POSTED SINGLEDIGIT REVENUE GTHE PAST FOUR QUARTERS A SPOKESMAN SAID AFTER THE DINNER DAVID TOGUT AN ANALYST FOR FIRST BOSTON CORP ISSUED A REPORT SAYING THAT MR GRANT HAD CUT IN HALF HIS LONGTERM GROWTH FORECASTS FOR THE INFORMATION TECHNOLOGY SERVICES MARKET LATER IN THE DAY MR TOGUT ISSUED A SECOND REPORT SAYING THAT HE HAD QUOTED MR GRANT INCORRECTLY AND THAT EDS EXPECTS THE MARKET TO GROW AT A 12 TO 15 RATE RATHER THAN THE 6 RATE INDICATED IN MR TOGUT'S FIRST REPORT A SPOKESMAN SAID THAT THE COMPANY DOES EXPECT TO BE CLOSE TO DOUBLEDIGIT REVENUE GROWTH FOR THE SECOND HALF AND THAT EDS EXPECTS 1993 TO BE ANOTHER RECORD YEAR FOR REVENUE 9309290047 930929 POLITICS & POLICY ICKES HAS HIS SPECIAL PASS TO THE WHITE HOUSE PULLED WASHINGTON HAROLD ICKES A NEW YORK LAWYER AND REPRESENTATIVE OF THE PUERTO RICAN GOVERNMENT HAS HAD HIS WHITE HOUSE PASS REVOKED MR ICKES HAD SPECIAL ACCESS TO THE CLINTON WHITE HOUSE EVEN WHILE HE LOBBIED SUCCESSFULLY TO LIMIT A PROPOSAL BY PRESIDENT CLINTON TO SCALE BACK A TAX BREAK FOR US MANUFACTURERS IN PUERTO RICO THE WHITE HOUSE ALSO HAS REVOKED THE WHITE HOUSE PASS OF ANOTHER NEW YORK LAWYER SUSAN THOMASES WHO HAD BEEN CONSIDERED FOR THE POST OF WHITE HOUSE SCHEDULER SHE SAID TURNING IN HER PASS WAS THE APPROPRIATE THING TO DO MR ICKES AND MS THOMASES WERE CAMPAIGN AIDES AND ARE CLOSE FRIENDS TO THE CLINTONS SOME OUTSIDERS NONE OF WHOM LOBBY WILL BE ALLOWED TO KEEP THEIR SPECIAL PASSES THEY INCLUDE POLITICAL ADVISERS JAMES CARVILLE PAUL BEGALA STAN GREENBERG AND MANDY GRUNWALD WHO HAVE CONSULTING CONTRACTS WITH THE DEMOCRATIC NATIONAL COMMITTEE DEMOCRATIC PARTY CHAIRMAN DAVID WILHELM ALSO WILL KEEP HIS PASS A WHITE HOUSE AIDE SAID 9309290046 930929 ECONOMY CLINTON WEIGHS LINKING EXPORTS TO FOREIGN AID AIDES URGE POLICY REVERSAL IN EFFORT TO BOOST SALES OF US GOODS OVERSEAS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WILL UNVEIL A NATIONAL EXPORT STRATEGY THAT PROVIDES A BOOST TO COMPUTER COMPANIES AND HIS TOP TRADE ADVISERS ARE STRONGLY RECOMMENDING THAT HE LINK SOME FOREIGN AID TO THE PURCHASES OF AMERICAN PRODUCTS THE PROPOSAL TO INSTITUTE SOCALLED TIED AID WOULD REVERSE LONGSTANDING US POLICY AND GO AGAINST THE WISHES OF THE STATE DEPARTMENT WHICH WANTS TO CONTINUE LINKING AID ONLY TO HUMANITARIAN PURPOSES OTHER PARTS OF THE STRATEGY TO BE ANNOUNCED TODAY BY THE PRESIDENT AND COMMERCE SECRETARY RON BROWN WILL INCLUDE A PACKAGE OF PROVISIONS AIMED AT HELPING AMERICAN INDUSTRIES COMPETE FOR SALES OVERSEAS ACCORDING TO THE ADMINISTRATION THE PLAN AIMS TO INCREASE TOTAL EXPORTS TO 1 TRILLION ANNUALLY BY THE YEAR 2000 FROM 700 BILLION AND CREATE SIX MILLION JOBS FOR AMERICAN WORKERS A MAJOR ELEMENT OF THE PLAN CALLS FOR REMOVING EXPORT RESTRICTIONS ON MANY COMPUTERS WHICH STEMS FROM A BROAD REVIEW OF EXPORT CONTROLS FROM THE COLD WAR ERA MR CLINTON WILL RAISE THE CONTROL THRESHOLD TO 194 MILLION THEORETICAL OPERATIONS A SECOND OR MTOPS FROM THE CURRENT 125 MTOPS FOR COMPUTER EXPORTS TO MOST COUNTRIES WHILE THE THRESHOLD FOR SUPERCOMPUTERS WILL JUMP TO 2000 MTOPS FROM 195 MTOPS THE CHANGES WILL DECONTROL ABOUT 70 OF ALL COMPUTERS AND SUPERCOMPUTERS ON THE MARKET A MOVE ELIMINATING OR REDUCING REGULATIONS ON AN ESTIMATED 35 BILLION OF HIGHTECH EXPORTS NEARLY ALL OF THE EQUIPMENT FALLING BELOW THE NEW THRESHOLDS CAN BE EXPORTED TO MOST NATIONS WITHOUT REQUIRING MANUFACTURERS TO APPLY FOR EXPORT LICENSES BUT NATIONS PROMOTING TERRORISM AND THOSE COVERED BY MULTILATERAL AGREEMENTS STILL WILL BE RESTRICTED THE OLD LIMITS WERE CLEARLY OUTDATED AS THE NEWEST GENERATION OF COMPUTER CHIPS IS EXPECTED TO HANDLE 66 MTOPS AND THE CHIPS CAN BE STRUNG TOGETHER TO OBTAIN FASTER SPEEDS THE DECISION IS LIKELY TO PLEASE LARGE AND SMALL COMPUTER COMPANIES WHICH HAD BEEN PUSHING FOR THE 2000MTOP LIMIT AND CONSIDERED THESE CONTROLS TO BE THE MOST IMPORTANT TRADE ISSUE FACING THEM BUT SOME WILL BE DISAPPOINTED THAT THE PLAN DOESN'T LIBERALIZE TRADE IN COMPUTERSECURITY DEVICES AS A RESULT OF RESISTANCE FROM INTELLIGENCE AGENCIES AT THE LAST MINUTE THE ADMINISTRATION SCRAPPED PLANS TO RAISE THE COMPUTER THRESHOLD TO 500 MTOPS CAUSING THE COMMERCE DEPARTMENT TO ADD A CLARIFICATION TO ITS PLAN LATE YESTERDAY OFFICIALS SAID THEY MUST NEGOTIATE WITH ALLIES BEFORE RAISING THE THRESHOLD BEYOND 194 MTOPS BUT THEY EXPECT THOSE TALKS TO BE COMPLETED NEXT MONTH AND THE THRESHOLD RAISED AGAIN THERE IS NO QUESTION THAT WITH THE STROKE OF A PEN THAT WE CAN HAVE A MAJOR IMPACT ON EXPORTS IN THIS AREA SAID SECRETARY BROWN EIGHTY PERCENT OF OUR EXPORT LICENSE APPLICATIONS ARE IN THE AREA OF ELECTRONICS TELECOMMUNICATIONS COMPUTERS MR BROWN ALSO ACKNOWLEDGED THAT THE CHANGE MAY HELP CALIFORNIA BECAUSE 40 OF ALL EXPORT LICENSE REQUESTS COME FROM THE STATE WHICH HAS A HIGH CONCENTRATION OF HIGHTECH COMPANIES FACED WITH A SLUGGISH ECONOMY AT HOME MR CLINTON EARLY IN HIS PRESIDENCY HAS DECIDED THE BEST WAY TO FIND THE NEW JOBS HE PROMISED IN LAST YEAR'S PRESIDENTIAL CAMPAIGN IS BY SHARPLY BOOSTING EXPORTS OF AMERICAN GOODS OVERSEAS MR CLINTON'S FISCAL 1995 BUDGET WILL COORDINATE THE 43 BILLION SPENT BY GOVERNMENT AGENCIES YEARLY TO PROMOTE EXPORTS RIGHT NOW 80 OF THE FUNDS PROMOTE AGRICULTURE WHICH REPRESENTS ONLY 10 OF US EXPORTS THE ADMINISTRATION WOULD LIKE TO SHIFT MORE MONEY TO PROMOTING AND ASSISTING MANUFACTURING WHICH CREATES MORE NEW JOBS WITH INCREASED EXPORTS BUT MAY FACE A FIGHT IN CONGRESS WITH THE POWERFUL FARM LOBBY MOREOVER IN AN EFFORT TO HELP SMALL BUSINESSES THE PLAN DRASTICALLY REDUCES THE TIME REQUIRED FOR APPROVAL OF EXPORT LICENSES AND CONSOLIDATES EXPORT PROMOTION SERVICES IN ONE LOCATION IN FOUR CITIES LOS ANGELES CHICAGO BALTIMORE AND MIAMI DESPITE THE STATE DEPARTMENT'S ADVICE NOT TO CREATE ANY NEW AID PROGRAMS MR CLINTON LAST NIGHT WAS CONSIDERING WHETHER TO INSTITUTE TIED AID IN SUCH PROGRAMS ONE COUNTRY GRANTS MONEY TO ANOTHER COUNTRY BUT REQUIRES THE RECIPIENT TO USE THOSE FUNDS TO BUY GOODS AND SERVICES FROM THE DONOR COUNTRY BUT ADMINISTRATION OFFICIALS CONSIDER TIED AID MAINLY AS A WAY OF REDUCING ITS USE BY OTHER COUNTRIES ESPECIALLY JAPAN MR BROWN SAID THAT IF IMPLEMENTED TIED AID WOULD BE A CLUB TO DISCOURAGE SUCH ASSISTANCE AT A CABINETLEVEL MEETING CHAIRED BY MR BROWN ON SEPT 9 PARTICIPANTS SAID THAT BRIAN ATWOOD WHO HEADS THE AGENCY FOR INTERNATIONAL DEVELOPMENT ARGUED FOR THE LONGSTANDING POLICY SAYING THAT IF WE CREATE OUR OWN TIED AID PROGRAM WE LOSE THE HIGH GROUND KEN BRODY THE CHAIRMAN AND PRESIDENT OF THE EXPORTIMPORT BANK COUNTERED THAT A LEVEL PLAYING FIELD WAS NEEDED FOR US BUSINESSES IN THE PAST THE TREASURY DEPARTMENT SIDED WITH THE DIPLOMATS BUT SECRETARY LLOYD BENTSEN BROKE FROM THE PAST I'M TIRED OF A LEVEL PLAYING FIELD PARTICIPANTS QUOTED MR BENTSEN SAYING WE SHOULD TILT THE PLAYING FIELD FOR US BUSINESSES WE SHOULD HAVE DONE IT 20 YEARS AGO OF THE 19 AGENCIES MAKING UP MR BROWN'S TRADE PROMOTION COORDINATING COMMITTEE 17 SUPPORTED CREATING A 150 MILLION TIED AID PROGRAM WITH ONLY THE AID AND STATE DEPARTMENT OPPOSING MR CLINTON IS TO DECIDE ON WHETHER TO APPROVE THIS PROGRAM OR A SECOND OPTION WHICH WOULD CONTINUE A LITTLEUSED WAR CHEST OF FUNDS THAT WERE APPROPRIATED TO THE EXIM BANK FOR USE IN CERTAIN CIRCUMSTANCES BUT THE MAIN THRUST WOULD BE TO PUSH VIGOROUSLY FOR OTHER NATIONS TO STOP OFFERING TIED AID IN ADDITION THE PLAN WILL PRODUCE COMMERCIAL STRATEGIC PLANS THAT BUSINESSES CAN USE TO INCREASE EXPORTS TO MAJOR FOREIGN MARKETS INCREASE THE PERPROJECT LIMIT TO 200 MILLION FROM 50 MILLION FOR THE OVERSEAS PRIVATE INVESTMENT CORP WHICH FACILITATES ECONOMIC GROWTH IN DEVELOPING COUNTRIES SHIFT 80 MILLION SPENT ON FEASIBILITY STUDIES FOR FOREIGN INFRASTRUCTURE PROJECTS TO A CENTRALIZED LOCATION AT THE TRADE AND DEVELOPMENT AGENCY 9309290045 930929 CREDIT MARKETS TREASURYS FINISH LITTLE CHANGED AS EARLY RALLY FALTERS CORPORATE BOND CALLS TOP 1992 LEVEL BY THOMAS D LAURICELLA AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK US TREASURY SECURITIES ENDED LITTLE CHANGED YESTERDAY AFTER THE MARKET FAILED TO HOLD ON TO EARLY GAINS THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 104 8/32 THE YIELD WAS UNCHANGED AT 594 THE 10YEAR NOTE REMAINED AT 103 14/32 TO YIELD 528 TREASURYS STARTED THE SESSION WITH A POSITIVE TONE TACKING MODERATE GAINS ONTO MONDAY'S RALLY BUT TRADERS SAID THE EARLY BOUTS OF BUYING WERE CONCENTRATED IN JUST A FEW ISSUES AND LED BY A LIMITED NUMBER OF PLAYERS AND THE GAINS WERE ATTRIBUTED IN PART TO RUMORS THAT THE FEDERAL RESERVE WAS CONDUCTING UNANNOUNCED PURCHASES OF INTERMEDIATE SECURITIES ON BEHALF OF FOREIGN CENTRAL BANKS DEALERS ALSO NOTED THAT TOMORROW IS THE LAST DAY OF THE THIRD QUARTER AND FOR MOST JAPANESE COMPANIES IT IS THE FISCAL HALFYEAR MARK AS A RESULT MANY TRADERS HAVE RESTRICTIONS ON THE POSITIONS THEY CAN TAKE AND THAT TENDS TO LIMIT THE LEVEL OF PARTICIPATION IN THE MARKET WHEN THE MARKET FAILED TO GENERATE THE KIND OF FOLLOWTHROUGH INVESTOR BUYING THAT HAD PROPELLED TREASURYS HIGHER MONDAY PRICES FELL BACK AS TRADING ENDED IT WAS A RALLY THAT WASN'T BROADBASED AND AS A RESULT WHEN IT STARTED TO RUN OUT OF GAS IT CAME OFF PRETTY EASILY SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC MEANWHILE FITCH INVESTORS SERVICE INC REPORTED LATE YESTERDAY THAT AS INTEREST RATES HAVE DROPPED CORPORATE BOND CALLS HAVE SURPASSED EVEN LAST YEAR'S HIGH LEVELS CORPORATIONS CALL BONDS BY BUYING THEM BACK FROM INVESTORS OFTEN AT A PREMIUM AND OFTEN BEFORE THEIR FINAL MATURITIES TO ISSUE LOWERYIELDING DEBT OR TO RETIRE OUTSTANDING DEBT THROUGH THE END OF AUGUST 74 BILLION OF INVESTMENTGRADE CORPORATE BONDS HAD BEEN CALLED THIS YEAR COMPARED WITH 67 BILLION FOR ALL OF 1992 FITCH ESTIMATED THAT ANOTHER 70 BILLION OF INVESTMENTGRADE BONDS IS LIKELY TO BE CALLED BY YEAR'S END THE LARGEST BLOCK OF CALLS CAME FROM UTILITY COMPANIES WHICH REDEEMED 282 BILLION OF BONDS THROUGH THE END OF AUGUST ACCOUNTING FOR 40 OF ALL CALLS THE HIGH LEVEL OF CALLS HAS HELPED TO FUEL THE BOND MARKET RALLY BECAUSE INVESTORS WHO HAVE HAD THEIR OLDER HIGHERYIELDING BONDS CALLED AWAY MUST LOOK FOR PLACES TO INVEST THEIR CASH WHILE THEY LOOK FOR OTHER CORPORATE BONDS TO REPLACE ONES THAT HAVE BEEN CALLED IN THE MUNICIPALBOND MARKET A 2 BILLION FLOOD OF NEW ISSUES MET WITH STRONG DEMAND CALIFORNIA MADE THE LARGEST OFFERING OF THE DAY AN 800 MILLION ISSUE OF GENERAL OBLIGATION BONDS THE TREASURY MARKET DID WEATHER SOME SLIGHTLY BEARISH ECONOMIC NEWS BEFORE FADING THERE WAS ONLY A BRIEF REACTION AT MIDMORNING WHEN THE CONFERENCE BOARD REPORTED ITS CONSUMER SENTIMENT INDEX ROSE MORE THAN EXPECTED TO 626 IN SEPTEMBER FROM 593 IN AUGUST TRADERS ALSO PAID LITTLE HEED TO THE AFTERNOON JOHNSON REDBOOK REPORT ON WEEKLY CHAIN AND DEPARTMENT STORE SALES REDBOOK SAID SALES FOR SEPTEMBER WERE UP 23 FROM AUGUST MARY DENNIS AN ECONOMIST AT MERRILL LYNCH & CO SAID THE REDBOOK DATA REFLECTED HEALTHY CONSUMER SPENDING THE INCREASES IN THE JOHNSON REDBOOK REPORT HAVE BEEN SUSTAINED FOR THE LAST FEW WEEKS SHE SAID SO FOR SEPTEMBER AS THE LAST MONTH OF THE QUARTER I THINK WE'RE GOING TO DO PRETTY GOOD ON CONSUMPTION SHE SAID SOME IN THE MARKET DID TAKE NOTICE OF THE TREASURY DEPARTMENT'S ANNOUNCEMENT AT MIDAFTERNOON YESTERDAY THAT IT WAS INCREASING THE AMOUNT OF THREEMONTH AND SIXMONTH BILLS IT WILL SELL AT NEXT WEEK'S AUCTION THE TREASURY SAID IT WILL SELL A COMBINED 236 BILLION MONDAY UP FROM THE 224 BILLION IN THREE AND SIXMONTH BILLS SOLD THIS WEEK ALTHOUGH IT WAS WIDELY BELIEVED THAT TREASURY WOULD BE FACING GREATER BORROWING NEEDS AND WOULD HAVE TO INCREASE THE SIZE OF THE BILL AUCTIONS THE CHANGE CAME SOMEWHAT SOONER THAN ANTICIPATED AND WAS A LARGER FIRST STEP THAN MANY ANALYSTS HAD EXPECTED IN AUGUST THE TREASURY PREDICTED IT WOULD NEED TO RAISE 95 BILLION TO 100 MILLION IN NEW CASH DURING THE FOURTH QUARTER ECONOMISTS BELIEVE THE TREASURY HAS OVERESTIMATED THE AMOUNT OF NEW FUNDS IT WILL NEED BUT THEY ADD THAT THE GOVERNMENT WILL DEFINITELY NEED MORE THAN THE 50 BILLION OR SO IT RAISED IN THE THIRD QUARTER AT THE SAME TIME THE TREASURY WILL HAVE TO CONTEND WITH TWO BIG GAPS IN ITS FINANCING SCHEDULE AS PART OF THE SHIFT TOWARD MORE SHORTTERM BORROWING NO 30YEAR BOND WILL BE OFFERED AT THE NOVEMBER REFUNDING IN ADDITION THIS WILL MARK THE SECOND STRAIGHT QUARTER WITHOUT A SEVENYEAR NOTE AUCTION IN ORDER TO MAKE UP FOR THAT SHORTFALL THE TREASURY IS GOING TO HAVE TO BOOST ALL OF THE REMAINING ISSUES SAID DOUG SCHINDEWOLF A MONEY MARKET ECONOMIST AT SMITH BARNEY SHEARSON INC THAT COULD MEAN THE TREASURY EACH WEEK WILL HAVE TO AUCTION 26 BILLION OF THREEMONTH AND SIXMONTH MONTH BILLS BY THE END OF THE YEAR HE SAID STRONG DEMAND MET A 2 BILLION WAVE OF NEW MUNICIPAL BOND ISSUES YESTERDAY PRICES OF ACTIVELY TRADED ISSUES ROSE 1/4 POINT TO 5/8 POINT IN LATE TRADING THE LATEST GROUP OF NEW BONDS WAS DOMINATED BY CALIFORNIA'S 800 MILLION VARIOUSPURPOSE GENERAL OBLIGATION BONDS WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 483 AND YIELDS RANGING FROM 250 IN 1994 TO 524 IN 2023 HOWEVER BY DAY'S END ABOUT 395 MILLION OF THE BONDS REMAINED UNSOLD ACCORDING TO MERRILL LYNCH MUNIS LIKE OTHER US BONDS ARE STILL GRADUALLY REGAINING STRENGTH AFTER A RECENT ROUND OF SELLING AMONG THE TAXEXEMPT ISSUES THAT ATTRACTED STRONG INTEREST YESTERDAY WERE THE NEW JERSEY HOUSING & MORTGAGE FINANCE AGENCY'S 520 COUPON BONDS DUE 2016 AND THE FLORIDA BOARD OF EDUCATION'S 525 COUPON CAPITAL OUTLAY PUBLIC EDUCATION BONDS DUE 2023 THE NEW JERSEY BONDS ROSE 1/2 POINT TO 99 TO YIELD 524 WHILE THE FLORIDA BONDS GAINED 1/2 POINT TO 99 1/4 TO YIELD 525 ALTHOUGH THE MARKET STRENGTHENED AGAIN AFTER FIRMING MONDAY AND LATE LAST WEEK SOME MUNI SPECIALISTS AREN'T RULING OUT THE POSSIBILITY OF FURTHER SALES IF PRICES CONTINUE TO CLIMB MARKET PARTICIPANTS MAY VIEW THAT AS A SELLING OPPORTUNITY SAID HANS HANF A TRADER AT PRUDENTIAL SECURITIES INC PEOPLE ARE LOOKING TO SELL ON STRENGTH WHILE THE NEARTERM COURSE OF PRICES IS UNCERTAIN THERE WAS NOTHING UNCLEAR ABOUT THE RESPONSE TO SOME OF THE BONDS THAT WERE PRICED THIS SESSION DEMAND WAS SO STRONG THAT SEVERAL UNDERWRITING GROUPS WERE ABLE TO RAISE THE PRICES AND LOWER THE YIELDS ON THEIR BOND OFFERINGS ONE SUCH ISSUE WAS THE KENTUCKY HOUSING CORP'S 2507 MILLION OF 1993 SERIES B HOUSING REVENUE REFUNDING BONDS WHICH WERE BROUGHT TO THE MARKET BY A BEAR STEARNS & CO GROUP AFTER YIELDS WERE CUT BY 005 TO 020 PERCENTAGE POINT THEY RANGED FROM 270 FOR NOTES MATURING IN 1994 TO 540 FOR BONDS MATURING IN 2014 THE BONDS BACKED BY GUARANTEED MORTGAGE LOANS ARE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP A SLIGHT DROP IN INTEREST RATES WAS NOT ENOUGH TO SPEED UP NEW ISSUANCE OF CORPORATE SECURITIES ONLY 200 MILLION OF CORPORATE DEBT AND 215 MILLION OF AGENCY PAPER CAME TO MARKET DURING THE SESSION OFFERINGS INCLUDED PENNSYLVANIA POWER & LIGHT CO'S 85 MILLION OFFERING OF PERPETUAL PREFERRED STOCK STOCK AND SPI HOLDING INC'S 150 MILLION BOND OFFERING IN THE SECONDARY MARKET TRADING IN THE INVESTMENTGRADE ARENA WAS LIGHT WITH YIELD SPREADS REMAINING STEADY PRICES FOLLOWED TREASURYS LOWER JUNKBOND TRADING WAS MODERATE WITH PRICES UP BY ABOUT A 1/4 POINT SPI'S BONDS TRADED UP MORE THAN A POINT IN AFTERHOURS TRADING SPI PRICED EARLY IN THE SESSION 150 MILLION OF EIGHTYEAR SENIOR DISCOUNT NOTES WITH A FOURYEAR CALL OPTION THE NOTES DO NOT PAY A COUPON FOR THE FIRST THREE YEARS PENNSYLVANIA P&L INCREASED ITS OFFERING OF CUMULATIVE PERPETUAL PREFERRED BY 35 MILLION TO 85 MILLION THERE WERE 850000 SHARES SOLD AT 100 EACH MAKING THE OFFERING ONE OF THE LARGEST INSTITUTIONALLY PLACED PERPETUAL DEALS THIS YEAR PENNSYLVANIA P&L'S PREFERRED NONCALLABLE FOR 10 YEARS WAS PRICED AT PAR FOR A 675 DIVIDEND YIELD RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY CS FIRST BOSTON MORTGAGE SECURITIES FINISHED NARROWLY MIXED AFTER TRADING IN A TIGHT RANGE THE MARKET RECEIVED NO DIRECTION FROM THE TREASURY MARKET WHERE FOR MUCH OF THE DAY LONGTERM NOTES AND THE LONG BOND OUTPERFORMED SHORTTERM NOTES THAT PERFORMANCE FLATTENED THE TREASURY YIELD CURVE WHICH MAKES THE ARBITRAGE INVOLVED IN UNDERWRITING REAL ESTATE MORTGAGE INVESTMENT CONDUITS LESS PROFITABLE LATE YESTERDAY THE YIELD SPREAD BETWEEN TWOYEAR NOTES AND THE 30YEAR BOND WAS 214 POINTS DOWN FROM 216 POINTS MONDAY ONLY ONE NEW REMIC WAS ANNOUNCED A 500 MILLION OFFERING BACKED BY 15YEAR 6 MORTGAGE SECURITIES FROM THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AMONG PRICES OF 6 COUPONS FOR OCTOBER DELIVERY GINNIE MAES ENDED UNCHANGED AT 99 18/32 FREDDIE MAC GOLDS AND FANNIE MAES WERE UP 1/32 TO 99 AND 98 29/32 RESPECTIVELY SOME HIGHERCOUPON ISSUES MEANWHILE LOST 1/32 TO 3/32 9309290044 930929 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL A GROUP GRIPE FROM UNITS ABROAD THEY ARE GROUPED TO FIGURE A NEW TAX ONE NEW TAX MEASURE REACHES FOR CERTAIN FOREIGN EARNINGS THAT WEREN'T TAXED BEFORE UNTIL THEY WERE REMITTED AS DIVIDENDS TO A US PARENT THE COMPLEX TAX ON INCOME APPLIES IF MORE THAN 25 OF A UNIT'S ASSETS PRODUCE PASSIVE INCOME DIVIDENDS AND INTEREST YET SAYS ELI FINK OF DELOITTE & TOUCHE CPAS MANY MULTINATIONALS AREN'T AWARE OF A KEY FACTOR WHEN FOREIGN SUBSIDIARIES ARE IN A GROUP AS IN A CHAIN UNDER A HOLDING COMPANY THE ASSET TEST APPLIES TO THE CHAIN AS A WHOLE NOT TO EACH UNIT A UNIT WITH A HIGH PERCENTAGE OF PASSIVE ASSETS CAN SPREAD THE TAX TO ALL OTHERS IN THE GROUP EVEN THOSE WITH PASSIVE ASSETS BELOW THE 25 THRESHOLD ALSO OPERATING ASSETS ARE FIGURED AT THEIR DEPRECIATED VALUE NOT MARKET VALUE RAISING THE RELATIVE VALUE OF PASSIVE ASSETS UNITS HOLDING BILLIONS OF DOLLARS OF PASSIVE ASSETS OVERSEAS COULD REINVEST EARNINGS IN OPERATING PLANTS TO AVOID TAXES BUT MANY DON'T NEED TO EXPAND FINK SAYS IN ADDITION COMPANIES MAY BE BARRED FROM REORGANIZING JUST TO AVOID THE GROUPING RULE THUS MANY US COMPANIES NO LONGER WILL BE ABLE TO DEFER US TAXES ON FOREIGN EARNINGS FINK SAYS EARNEDINCOME CREDITS CAN ADD 100 A MONTH TO A POOR FAMILY'S PAYCHECK SO THE IRS IS TRYING NEW WAYS TO PUBLICIZE THE UNDERUSED PAYCHECK OPTION AND THE BROADENING OF ELIGIBILITY THE WORKING POOR CLAIMED 112 BILLION IN CREDITS IN FISCAL 1992 BUT MOSTLY ON YEAREND RETURNS RATHER THAN BY REGULAR SUPPLEMENTS TO PAYCHECKS MANY ELIGIBLE WAGEEARNERS DIDN'T KNOW THEY COULD CLAIM CREDITS AT ALL NOW THE TAX ACT EXPANDS THE CREDIT PROGRAM STARTING IN 1994 AND THE IRS WANTS TO SPREAD THE WORD SPOKESWOMAN ELLEN MURPHY SAYS THE IRS IS WORKING WITH NATIONAL GROUPS OF SOCIAL WORKERS COMMUNITYACTION AGENCIES MINORITIES THE HOMELESS AND OTHERS TO DEVELOP CAMPAIGNS TO REACH THOSE UNAWARE OF OR CONFUSED BY THE CREDIT THE IRS ALSO SEEKS NEW POOLS OF VOLUNTEERS TO BE TRAINED IN TAX ISSUES OF THE POOR THE VOLUNTEERS WOULD HELP WORKERS TO APPLY ON FORM W5 FOR PAYCHECK CREDITS AND TO FILE THEIR ANNUAL RETURNS A HOME ON THE RANGE WAS A PRINCIPAL RESIDENCE FOR COWS AS WELL AS PEOPLE MICHAEL L AND SANDRA L RICHARDS SOLD A RESIDENCE FOR 225000 REALIZED A GAIN OF 112447 AND BOUGHT A FARM NEAR CULVER ORE FOR 185000 ON THEIR 1988 RETURN THEY REPORTED A GAIN ON THE HOME SALE OF ONLY 18936 INDICATING THEY HAD ROLLED OVER THE REST OF THE SALE PRICE INTO A NEW HOME THE IRS DISPUTED THAT SO THEY WENT TO THE TAX COURT ALTHOUGH THEY CONCEDED THE FARMING PART OF THE NEW PROPERTY COULDN'T BE CALLED RESIDENTIAL FOR ROLLOVER PURPOSES THE COUPLE EVEN ACCEPTED AN IRS APPRAISAL OF 124500 FOR THE TOTAL PROPERTY YET THEY ARGUED THEY HAD OVERPAID BY 60500 AND ATTRIBUTED THAT TO RESIDENTIAL VALUE THAT WAY THEY SAID MUCH OF THE GAIN WENT INTO THE RESIDENCE BUT JUDGE RUWE DISAGREED HE ACCEPTED AN IRS APPRAISER'S FINDING THAT THE RESIDENCE VALUE WAS ONLY 42 OF THE TOTAL APPLYING THAT TO THE 185000 FARM COST HE FOUND THE RESIDENCE VALUE WASN'T ENOUGH TO INCLUDE ANY OF THE SALE GAIN THE JUDGE HELD THAT ALL OF THE GAIN WAS TAXABLE AND IMPOSED A PENALTY FOR SUBSTANTIAL UNDERSTATEMENT OF TAX A PENALTY HANDBOOK NEARS COMPLETION THE IRS ISSUED MUCH OF IT IN 1992 TO FOSTER UNIFORM IMPOSITION OF PENALTIES NOW A CHAPTER ON RETURN PREPARERS IS OUT ONE ON ESTIMATED TAXES IS DUE IN OCTOBER THOSE ON INTERNATIONAL BENEFITSPLAN EXEMPTGROUP INFORMATIONREPORTING AND OTHER PENALTIES SHOULD WRAP UP THE PROJECT IN SIX TO NINE MONTHS THE IRS'S JOAN DOLIAN SAYS RECEIPTS OF RETURNS STILL LAG BEHIND EXPECTATIONS THROUGH LAST WEEK 112962000 RETURNS WERE FILED 913000 FEWER THAN IN THE 1992 PERIOD PEOPLE WHO SHOULD FILE BUT HAVEN'T MAY ACCOUNT FOR MUCH OF THIS ESPECIALLY PEOPLE WHO UNEXPECTEDLY OWE TAXES BECAUSE OF THE CUT IN WITHHOLDINGTAX RATES TAX PRACTITIONERS SAY THE MOST AGGRESSIVE SALESTAX AUDITS ARE CONDUCTED BY CALIFORNIA NEW YORK AND FLORIDA SAY COMPANIES POLLED BY SALES & USE TAX ALERT A NEWSLETTER BUT MOST STATES ARE FOUND TO BE INTENSIFYING AUDITS A DESIGNATED HITTER ERRS IN THE FIELD OF TAXES THE BALTIMORE ORIOLES NAMED FAN STANLEY COHEN A DESIGNATED HITTER BECAUSE HE VOLUNTEERED TO HELP SELL TICKETS TO THEIR GAMES THE GRATEFUL BASEBALL CLUB DIDN'T PAY COHEN FOR SELLING SOME 22000 TICKETS BUT IT REWARDED HIM WITH A FREE TRIP TO FLORIDA TO SEE THE TEAM DURING 1987 SPRING TRAINING THE ORIOLES VALUED THE TRIP AT 948 AND REPORTED THAT TO THE IRS AS NONEMPLOYEE COMPENSATION TO THEIR FAN COHEN CLAIMED UNREIMBURSED EXPENSES OF 3000 FOR PHONE CALLS STATIONERY TRANSPORTATION AND TICKETS TO TAKE PROSPECTS TO GAMES BUT THE IRS DISPUTED HIS DEDUCTIONS SO HE TURNED TO THE TAX COURT NOW SPECIAL JUDGE DINAN SAYS COHEN MAY DEDUCT ONLY 948 OF EXPENSES A SUM EQUAL TO HIS RELATED INCOME COHEN CAN'T DEDUCT MORE BECAUSE HE LACKED A PROFIT MOTIVE HE CONCEDED HE SOLD THE TICKETS FOR PRESTIGE NOT PROFIT THE JUDGE COMMENTED THAT A SELLING EXPENSE OF 14 CENTS ON AN 850 TICKET WASN'T UNREASONABLE BRIEFS THE CZECH REPUBLIC AND THE US SIGNED A TREATY SLASHING WITHHOLDING TAXES ON INTEREST AND DIVIDENDS SENT FROM ONE COUNTRY TO THE OTHER FEDERAL EXCISE TAXES ARE ABOUT FOUR CENTS ON A GLASS OF WINE AND FIVE CENTS ON A CAN OF BEER THE CONGRESSIONAL RESEARCH SERVICE SAYS 9309290043 930929 BUSINESS BRIEF TRANSCO ENERGY PLANS TO SPEND 127 MILLION IN PIPELINE EXPANSION HOUSTON TRANSCO ENERGY CO SAID IT WILL EXPAND THE CAPACITY OF ITS TRANSCONTINENTAL PIPELINE FOR ABOUT 127 MILLION THE COMPANY FOLLOWING FINANCIAL RESTRUCTURING WILL INCREASE THE CAPACITY OF THE PIPELINE BY 200 MILLION CUBIC FEET A DAY TO SERVE FIVE SOUTHEASTERN STATES THE PROJECT ALSO INVOLVES 25 MILES OF PIPELINE REPLACEMENT CONSTRUCTION SCHEDULED FOR TWO PHASES WILL BEGIN IN JUNE AND IS TO BE COMPLETED BY THE 199697 WINTER HEATING SEASON TRANSCO'S TRANSCONTINENTAL PIPELINE CURRENTLY HAS A CAPACITY OF 32 BILLION CUBIC FEET OF GAS A DAY WE WILL FILE FOR THE EXPANSION WITH THE FEDERAL ENERGY REGULATORY COMMISSION IN NOVEMBER SAID BOB BEST PRESIDENT AND CHIEF OPERATING OFFICER OF TRANSCO'S TRANSCONTINENTAL GAS PIPE LINE CORP THE PIPELINE BEGINS ON THE TEXAS GULF COAST AND RUNS ABOUT 10000 MILES THROUGH THE SOUTH THE SOUTHEAST AND ALONG THE EAST COAST TO NEW YORK THE COMPANY NOW HAS SOUNDER FINANCIALS TO PERMIT SOME EXPANSION AND GROWTH SAID FOSTER CORWITH AN ANALYST WITH DEAN WITTER THE MOVE IS A POSITIVE ONE BUT NO ONE IS GOING TO RAISE EARNINGS ESTIMATES BECAUSE OF THIS IN RESTRUCTURING THE COMPANY SOLD NONSTRATEGIC ASSETS LIKE ITS NATURALGASGATHERING SYSTEM BARGE TERMINAL FACILITIES AND RAILROAD AND OILANDGAS EXPLORATION AND PRODUCTION COMPANY ITS COAL BUSINESS REMAINS ON THE BLOCK 9309290041 930929 BUSINESS BRIEF VALLEY FASHIONS CORP COMPANY TO PAY 69 MILLION FOR THE REST OF WEST POINT VALLEY FASHIONS CORP NEW YORK SAID IT WILL PAY 46 A SHARE OR 69 MILLION IN CASH FOR THE 15 MILLION SHARES OF WEST POINTPEPPERELL INC THAT IT DOESN'T OWN VALLEY FASHIONS AND WEST POINT 95OWNED BY VALLEY APPROVED A MERGER PLAN SEPT 20 AT THAT TIME THE COMPANIES ALSO APPROVED A BANK DEBT REFINANCING WHICH WILL INCLUDE ISSUING SUBORDINATED DEBT SECURITIES AND BORROWING UNDER A NEW CREDIT FACILITY SOME OF THE PROCEEDS WILL BE USED TO FINANCE THE MERGER TERMS OF THE REFINANCING HAVEN'T BEEN DISCLOSED BOTH THE REFINANCING AND THE MERGER ARE EXPECTED TO CLOSE IN DECEMBER VALLEY SAID THE COMBINED ENTITY WILL BE CALLED WESTPOINT STEVENS INC VALLEY FASHIONS CAME OUT OF CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS LAST SEPTEMBER IT IS THE SUCCESSOR TO THE COMPANY CHICAGO INVESTOR WILLIAM FARLEY CREATED TO ACQUIRE MOST OF WEST POINT IN A 1989 DEBTFINANCED BUYOUT 9309290040 930929 GM SLATES HEAVY OVERTIME DETROIT GENERAL MOTORS CORP SAID IT HAS SCHEDULED OVERTIME AT MANY OF ITS US FACTORIES THIS WEEK BUT WILL FALL 72000 VEHICLES SHORT OF ITS ORIGINAL THIRDQUARTER US VEHICLEPRODUCTION FORECASTS BECAUSE OF PROBLEMS WITH NEW AIRBAGS AND OTHER PARTS GM RELEASED PRODUCTION FIGURES FOR SEPT 2025 AND ESTIMATES FOR THE SEPT 2730 PERIOD EARLIER THAN SCHEDULED IN RESPONSE TO A STORY IN THE WALL STREET JOURNAL YESTERDAY THAT ESTIMATED THIRDQUARTER US CAR AND TRUCK PRODUCTION WOULD FALL 110000 VEHICLES BEHIND COMPANY PROJECTIONS RELEASED IN JULY GM SAID THAT ESTIMATE OVERSTATED THE ACTUAL SHORTFALL GM SAID ITS EFFORTS TO CUT PURCHASING COSTS AREN'T TO BLAME FOR THE 1994MODEL LAUNCH PROBLEMS A GM SPOKESWOMAN CLARIFIED THAT THE COMPANY'S ORIGINAL ESTIMATE FOR THIRD QUARTER US CAR AND TRUCK PRODUCTION WAS 84000 VEHICLES NOT INCLUDING ABOUT 21000 CARS BUILT AT THE COMPANY'S JOINT VENTURE WITH TOYOTA MOTOR CORP GM'S THIRD QUARTER US VEHICLE PRODUCTION ACTUALLY WILL TOTAL ABOUT 752000 CARS AND TRUCKS THE SPOKESWOMAN SAID GM SAID IT BUILT 79816 CARS AND TRUCKS IN THE US LAST WEEK UP FROM 74075 THE WEEK BEFORE THE COMPANY EXPECTS TO BUILD 70300 VEHICLES IN THE SEPT 2730 PERIOD REFLECTING 104 HOURS OF SCHEDULED OVERTIME THE SPOKESWOMAN SAID 9309290039 930929 BUSINESS BRIEF COLT'S MANUFACTURING CO CONNECTICUT STATE AGENCY PROPOSES 12 MILLION RESCUE A CONNECTICUT STATE AGENCY SAID IT PROPOSED INVESTING 12 MILLION IN A REVIVAL PLAN FOR FIREARM MAKER COLT'S MANUFACTURING CO IN WHICH A STATE PENSION FUND ALREADY HAS INVESTED 25 MILLION AND STANDS TO LOSE MOST OF IT COLT'S BASED IN ROCKY HILL CONN IS OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION FROM CREDITORS THE CONNECTICUT DEVELOPMENT AUTHORITY A FINANCING ARM OF THE STATE'S ECONOMIC DEVELOPMENT DEPARTMENT AND AN UNSECURED CREDITOR PROPOSED TO INVEST 12 MILLION IN THE COMPANY WHILE A GROUP IN GREENWICH CONN WOULD INVEST 22 MILLION FOR AN 85 STAKE COLT'S WORKERS AND MANAGEMENT WOULD OWN THE REMAINING 15 OF THE REORGANIZED COMPANY THE STATE AGENCY PROPOSES TO BUY RIGHTS TO THE COLT NAME FOR 6 MILLION FROM A THIRD PARTY BUT WILL GIVE THE COMPANY THE RIGHT TO USE THE NAME IN RETURN FOR PREFERRED STOCK IN THE REORGANIZED COMPANY AND A PROMISE THAT IT WOULD KEEP ITS HEADQUARTERS IN CONNECTICUT THE OTHER 6 MILLION WOULD BE USED TO REIMBURSE THE STATE EMPLOYEE PENSION FUND FOR SOME OF ITS LOSSES 9309290038 930929 BUSINESS BRIEF CALGENE INC CONCERN EXPECTS ITS TOMATO TO GET FDA APPROVAL SOON ROGER SALQUIST CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF CALGENE INC SAID HE EXPECTS THE COMPANY'S GENETICALLYENGINEERED TOMATO TO RECEIVE FOOD AND DRUG ADMINISTRATION MARKET APPROVAL BY MIDOCTOBER WE EXPECT TO GROW THAT MARKET TO A 500 MILLION MARKET OVER THE NEXT FIVE YEARS THE HEAD OF THE AGRICULTURAL BIOTECHNOLOGY CONCERN SAID IN A SPEECH AT THE MONTGOMERY SECURITIES INVESTMENT CONFERENCE IN SAN FRANCISCO MR SALQUIST ADDED IN AN INTERVIEW THAT THE COMPANY WILL BE READY TO LAUNCH LIMITED SHIPMENTS TO THE MIDWEST THE DAY AFTER SUCH REGULATORY CLEARANCE IS RECEIVED CALGENE'S FLAVR SAVR TOMATO IS GENETICALLY ENGINEERED TO INACTIVATE THE GENE RESPONSIBLE FOR THE PROTEIN THAT CAUSES ROTTING THUS GROWERS WILL BE ABLE TO PICK AND SHIP REDRIPE TOMATOES RATHER THAN THE HARD GREEN FRUIT THAT IS PICKED UNRIPE AND TREATED WITH ETHYLENE TO IMPART A REDDISH COLOR 9309290037 930929 BUSINESS BRIEF BROOKE GROUP LTD JUDGE DECLINES TO BLOCK SPIN OFF OF SPORTS CARD UNIT BROOKE GROUP LTD'S PLAN TO SPIN OFF ITS SKYBOX INTERNATIONAL INC SPORTS CARD UNIT CLEARED A LEGAL HURDLE WHEN A DELAWARE CHANCERY COURT JUDGE DECLINED TO ISSUE A TEMPORARY ORDER BLOCKING THE DISTRIBUTION BROOKE PLANS TO DISTRIBUTE THE SHARES ONCE DISCLOSURE MATERIALS ARE CLEARED BY THE SECURITIES AND EXCHANGE COMMISSION PERHAPS AS EARLY AS THIS WEEK AN INVESTOR GROUP IS CHALLENGING THE SKYBOX SPINOFF ON GROUNDS THAT BROOKE IS INSOLVENT AND THUS LEGALLY BARRED FROM MAKING THE DISTRIBUTION BUT THE COURT SAID THERE WAS INSUFFICIENT INFORMATION FOR NOW TO BAR THE SPINOFF WHILE THE LAWSUIT IS STILL PROCEEDING ON THE SOLVENCY ISSUE AN ATTORNEY FOR BROOKE SAID FOR ALL PRACTICAL PURPOSES THE MATTER IS RESOLVED 9309290036 930929 BUSINESS BRIEF PROVIDENCE HEALTH CARE INC CHAIRMAN BOOSTS HIS STAKE TO KEEP THE BOARD IN PLACE PROVIDENCE HEALTH CARE INC BEREA OHIO SAID ITS CHAIRMAN LAWRENCE B CUMMINGS BOOSTED HIS STAKE IN THE COMPANY AND NOW CONTROLS ENOUGH STOCK TO KEEP THE BOARD IN PLACE ACCORDING TO A 13D FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR CUMMINGS BOUGHT 118500 SHARES ON THE OPEN MARKET IN RECENT DAYS TOGETHER WITH TWO BROTHERS HE NOW CONTROLS 327 OF PROVIDENCE'S 46 MILLION COMMON SHARES OUTSTANDING UP FROM 30 THE HEALTH CARE CONCERN IS UNDER FIRE FROM COMMONWEALTH ASSOCIATES A NEW YORK INVESTMENT FIRM THAT UNDERWROTE PROVIDENCE'S 1992 INITIAL PUBLIC OFFERING COMMONWEALTH WHICH OWNS 6 HAS SAID IT IS DISSATISFIED WITH THE ISSUER'S MANAGEMENT AND DISAPPOINTED WITH ITS RESULTS IN ITS OWN 13D THE FIRM SAID IT WILL TRY TO REPLACE PROVIDENCE'S FOURMEMBER BOARD COMMONWEALTH OFFICIALS WERE UNAVAILABLE FOR COMMENT 9309290035 930929 COMMODITIES COPPER FUTURES FALL TO LOWEST LEVEL IN SIX YEARS AS US LONDON STOCKPILES RISE ON WEAK DEMAND BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES FELL TO THEIR LOWEST LEVELS IN NEARLY SIX YEARS AS STOCKPILES SURGED IN THE US AND LONDON AMID ANEMIC DEMAND FOR THE INDUSTRIAL METAL AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR DECEMBER DELIVERY TUMBLED TWO CENTS TO SETTLE AT 7630 CENTS A POUND DURING TRADING YESTERDAY THE PRICE OF THE ACTIVELY TRADED DECEMBER CONTRACT TOUCHED 7625 CENTS A POUND THE LOWEST PRICE ANY FUTURES CONTRACT HAS REACHED SINCE OCTOBER 1987 YOU'VE GOT RISING INVENTORIES ON BOTH SIDES OF THE ATLANTIC AND A LACK OF PHYSICAL DEMAND SAID BERNARD SAVAIKO COPPER ANALYST FOR PAINEWEBBER INC PRODUCERS ARE MAKING MONEY DESPITE THESE PRICE LEVELS BECAUSE THE COST OF PRODUCTION IS DOWN TO AROUND 60 CENTS AT THE LONDON METAL EXCHANGE YESTERDAY A SEMIWEEKLY COPPERSTOCKS REPORT SHOWED STOCKS HAD CLIMBED 23350 TONS TO 591225 TONS THE HIGHEST LEVEL IN 15 YEARS SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THESE STOCKS REPRESENT THE COPPER STORED IN LONDON METAL EXCHANGE WAREHOUSES FOR DELIVERY AGAINST LONDON'S FUTURES CONTRACTS THEY ARE SIGNIFICANT BECAUSE RISING STOCKS ARE INDICATIVE OF WEAK WORLD DEMAND FOR COPPER COPPER TRADERS AT NEW YORK'S COMEX MONITOR LONDON STOCKS CLOSELY AS WELL AS THE STOCKS IN THEIR EXCHANGE'S OWN WAREHOUSES THE STOCKS ARE GROWING BECAUSE OF POOR DEMAND AND ALSO THERE ARE SOME ARBITRAGE FACTORS THAT MAKE IT FAVORABLE TO MOVE COPPER INTO THE WAREHOUSES MR O'NEILL SAID ABOUT 75 OF ALL COPPER CONSUMPTION OCCURS OUTSIDE THE US MAINLY BY CAR MANUFACTURERS AND OTHER INDUSTRIES IN JAPAN AND GERMANY AND THE CONSTRUCTION INDUSTRY IN CHINA DEEP RECESSIONS IN JAPAN AND GERMANY HAVE CURTAILED PURCHASES OF COPPER BY CORPORATIONS IN THOSE COUNTRIES IN CHINA HUGE COPPER PURCHASES IN 1992 MEAN THE COUNTRY NEEDS TO BUY LESS THIS YEAR ANALYSTS SAID YESTERDAY'S PRICE DECLINE WAS THE LATEST OF SEVERAL SLUMPS SINCE THE LONDON METAL EXCHANGE RECENTLY TOOK STEPS TO ELIMINATE A PRICE DISCREPANCY BETWEEN NEARTERM AND FARTERM FUTURES CONTRACTS THAT HAD BEEN ARTIFICIALLY SUPPORTING THE MARKET THROUGHOUT THE SUMMER RUMORS CIRCULATED THAT A BIG ASIAN TRADING CONCERN WAS BUYING NEARTERM FUTURES CONTRACTS AND SELLING FARTERM CONTRACTS WHICH CREATES A PRICE DISCREPANCY BETWEEN NEARTERM AND FARTERM CONTRACTS THAT TENDS TO SUPPORT PRICES PRICES EBBED HOWEVER AFTER THE LONDON METAL EXCHANGE IMPOSED A 5 LIMIT ON THE DISCREPANCY BETWEEN THE NEARTERM CONTRACT PRICE AND THE FARTERM PRICE MEANWHILE MR SAVAIKO THEORIZED YESTERDAY THAT PRICES MAY FALL FURTHER IN COMING WEEKS WE HAD A DECISIVE BREAKOUT ON THE DOWNSIDE YESTERDAY HE SAID WE'RE LIKELY TO HAVE FOLLOWTHROUGH DOWN TOWARD THE 70CENT LEVEL OVER THE LONGTERM I WOULDN'T RULE OUT A DECLINE TOWARD THE COST OF PRODUCTION NEAR 60 CENTS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES SETTLED HIGHER YESTERDAY ON NEWS THAT MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE GETTING CLOSER TO A PRODUCTION AGREEMENT TRADERS AND ANALYSTS SAID THERE IS OPTIMISM AMONG MARKET PARTICIPANTS THAT OPEC WILL AGREE ON INDIVIDUAL QUOTAS FOR ITS 12 MEMBERS THE GROUP ALREADY HAD AGREED TO RAISE ITS PRODUCTION CEILING BY ONLY ONE MILLION BARRELS DAILY TO 245 MILLION BARRELS THE ACTUAL QUOTA NUMBERS NEED TO BE AGREED TO BUT THERE IS COOPERATION BETWEEN IRAN AND SAUDI ARABIA TO GET THERE SAID AN ANALYST WITH A MAJOR BROKERAGE HOUSE REFERRING TO THE OPEC TALKS THAT WILL ENTER THEIR SIXTH DAY TODAY SAUDI ARABIAN AND IRANIAN OFFICIALS ARE ENCOURAGING KUWAIT TO REJOIN THE OPECQUOTA FOLD IT REJECTED IN JUNE BY ACCEPTING A FOURTHQUARTER LIMIT NEAR TWO MILLION BARRELS A DAY KUWAIT HAS BEEN REJECTING THAT NUMBER BUT LATE YESTERDAY APPEARED TO BE CLOSE TO A COMPROMISE IF SUCH A DEAL IS STRUCK THAT WOULD LOCK UP THE MAJOR OPEC PRODUCERS AND THE REST OF THE GROUP WOULD FALL IN LINE TRADERS SAID AFTER THE MARKET CLOSED HOWEVER KUWAIT REJECTED THE OFFER PRICES SHOULD BE PROPPED UP FURTHER BECAUSE OF A HEAVY INVENTORY DRAWDOWN REPORTED BY THE AMERICAN PETROLEUM INSTITUTE LATE YESTERDAY THE INDUSTRY GROUP SAID US CRUDE OIL STOCKS DECREASED BY 11570000 BARRELS LAST WEEK GRAINS AND SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SLIPPED AS SOME METEOROLOGISTS REDUCED THE CHANCES FOR AN EARLY FROST ACROSS MUCH OF THE MIDWEST THIS WEEK IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR DECEMBER DELIVERY FELL THREE CENTS A BUSHEL TO SETTLE AT 24325 THE NOVEMBER SOYBEAN CONTRACT DROPPED 775 CENTS A BUSHEL TO SETTLE AT 6315 THE GROWING SEASON ACROSS MUCH OF THE US FARM BELT USUALLY IS ENDED BY A HARD FROST IN EARLY TO MIDOCTOBER AN EARLY FROST WOULD REDUCE THE POTENTIAL SIZE OF THE US CORN AND SOYBEAN HARVESTS BECAUSE MANY OF THESE FIELDS WON'T REACH FULL MATURITY FOR WEEKS THEIR GROWTH RATE WAS SLOWED BY THE EXCESSIVE SUMMER RAIN 9309290034 930929 TECHNOLOGY MEDICALSYSTEM PLAN CLEARS ANTITRUST TEST UNDER CLINTON POLICY WASHINGTON IN THE FIRST APPLICATION OF ITS HEALTHCARE ANTITRUST POLICY STATEMENT THE CLINTON ADMINISTRATION SAID IT WON'T CHALLENGE A PROPOSED NATIONAL NETWORK OF DOCTORS AND HOSPITALS THE JUSTICE DEPARTMENT ANNOUNCED IT WOULDN'T CHALLENGE A NATIONAL CARDIOVASCULAR NETWORK INC PLAN TO CREATE AN ORGANIZATION INCLUDING CARDIOLOGISTS CARDIOVASCULAR SURGEONS AND ACUTECARE HOSPITALS UNDER THE PLAN THE DOCTORS AND HOSPITALS WOULD PROVIDE SERVICES AT ALLINCLUSIVE PRICES IN 41 METROPOLITAN AREAS TO BENEFICIARIES OF LARGE THIRDPARTY PAYERS THE DEPARTMENT'S ANTITRUST DIVISION CONCLUDED THE PROPOSAL WOULDN'T HARM CONSUMERS NCN BASED IN ATLANTA WON'T INITIALLY CONTRACT WITH SERVICE PROVIDERS WHO COMPETE WITH EACH OTHER IN 38 OF THE 41 AREAS ACCORDING TO THE DEPARTMENT IN THE REMAINING THREE CITIES AND IN THE FUTURE IN OTHER AREAS NCN TOLD THE DEPARTMENT IT WON'T CONTRACT WITH MORE THAN 20 OF THE DOCTORS WITH ACTIVE ADMITTING PRIVILEGES AT THE RELEVANT HOSPITALS WITH THIS ASSURANCE NCN'S PROPOSAL QUALIFIED FOR AN ANTITRUST SAFETY ZONE UNDER THE HEALTHCARE INDUSTRY POLICY STATEMENTS THE DEPARTMENT SAID 9309290033 930929 BUSINESS BRIEF BELLSOUTH CORP MOBILECOMM UNIT TO OFFER NEW SERVICES VIA NETWORK BELLSOUTH CORP'S MOBILECOMM PAGINGSERVICES UNIT PLANS TO TURN ITS NETWORK INTO A MOBILE DATA SYSTEM CAPABLE OF DELIVERING WIRELESS MESSAGES AND OTHER INFORMATION UNDER THE NEW PLAN TO BE ANNOUNCED TODAY AT AN INDUSTRY CONFERENCE IN NEW ORLEANS MOBILECOMM WILL OFFER CUSTOMERS LIMITED TEXT MESSAGING NEWS AND OTHER INFORMATION DELIVERED TO A LAPTOP OR NOTEBOOK COMPUTER VIA ITS PAGING NETWORK ANALYSTS SAY MOST OF WHAT MOBILECOMM IS OFFERING IS JUST A COUNTERSTRIKE AT ITS BIGGER RIVAL SKYTEL THE SERVICE OF MOBILE TELECOMMUNICATION TECHNOLOGIES CORP JACKSON MISS SKYTEL ALREADY DELIVERS SIMILAR INFO AND SHORT ELECTRONIC MAIL MESSAGES TO SUBSCRIBERS WHO USE LAPTOP COMPUTERS AND NEWER PALMTOPS STEPHEN E PAZIAN MOBILECOMM'S PRESIDENT SAID THE NEW SERVICE GOES BEYOND SKYTEL'S BY LETTING SUBSCRIBERS PRIORITIZE THE PAGES THEY WANT TO GET AND MAKING THE SENDER PAY BUT DAVID GARRISON SKYTEL'S PRESIDENT SAID SENDERS WILL VIEW THE LATTER FEATURE AS AN UNNECESSARY HASSLE 9309290032 930929 BUSINESS BRIEF EG&G INC CONCERN SEES 3RDPERIOD NET DOWN 40 BELOW OUTLOOK EG&G INC SAID IT EXPECTS THIRDQUARTER EARNINGS TO TRAIL EXPECTATIONS AND TO BE 40 LOWER THAN THE 221 MILLION OR 39 CENTS A SHARE IT REPORTED FOR THE YEAREARLIER PERIOD IN A NEWS RELEASE COVERING COMMENTS AT AN ANALYSTS' MEETING THE WELLESLEY MASS COMPANY ATTRIBUTED THE FALLOFF TO A SLUGGISH ENVIRONMENT THAT HURT INSTRUMENT SALES IN WESTERN EUROPE AND THE US AND LOWER INCOME FROM OPERATIONS OF ITS DEPARTMENT OF ENERGY SUPPORT BUSINESS IN NEW YORK STOCK EXCHANGE TRADING EG&G STOCK PLUNGED 225 OR 116 TO 17125 THE COMPANY SAID ANY SHORTFALL IN THIRD QUARTER EARNINGS WILL NOT BE RECOVERED IN THE FOURTH QUARTER EG&G CHAIRMAN JOHN M KUCHARSKI SAID I DON'T BELIEVE THERE IS ANY FUNDAMENTAL WEAKNESS IN OUR BUSINESS HOWEVER OUR INABILITY TO FORECAST SHORTTERM PERFORMANCE IS DISAPPOINTING 9309290031 930929 BUSINESS BRIEF FIRST BANCORP OF OHIO PURCHASE OF GREAT NORTHERN IS VALUED AT 46 MILLION FIRST BANCORP OF OHIO SAID IT AGREED TO BUY GREAT NORTHERN FINANCIAL CORP IN A STOCK SWAP WITH A FIXED VALUE OF 46 MILLION BASED ON THE CLOSING STOCK PRICE OF AUG 30 THE PACT CALLS FOR FIRST BANCORP TO SWAP 3746 SHARES OF ITS STOCK FOR EACH GREAT NORTHERN SHARE GREAT NORTHERN HAS 502000 SHARES OUTSTANDING IF THE AVERAGE CLOSING PRICE OF FIRST BANCORP'S STOCK TOPS 28 A SHARE 20 TRADING DAYS BEFORE THE TRANSACTION CLOSES THE EXCHANGE RATE WILL BE LOWERED SO GREAT NORTHERN HOLDERS WILL GET FIRST BANCORP STOCK VALUED AT 10488 FOR EACH SHARE IF FIRST BANCORP'S STOCK FALLS BELOW 20 A SHARE IN THAT PERIOD GREAT NORTHERN CAN CANCEL THE ACQUISITION FIRST BANCORP SAID IT EXPECTS THE TRANSACTION WILL CLOSE IN 1994'S SECOND QUARTER IN NASDAQ TRADING YESTERDAY FIRST BANCORP SHARES ROSE 625 CENTS TO 28 FIRST BANCORP AKRON OHIO HAD ASSETS OF 389 BILLION AT JUNE 30 GREAT NORTHERN OF BARBERTON OHIO HAD 3844 MILLION 9309290030 930929 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN MEDICAL RESPONSE INC 33 MILLION COMMON SHARES PRICED AT 2375 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CLEAR CHANNEL COMMUNICATIONS INC 19 MILLION COMMON SHARES PRICED AT 35375 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC MIDLAND BANK PLC 250 MILLION OF NONCUMULATIVE DOLLAR PREFERENCE SHARES THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE OFFERING CONSISTS OF 10 MILLION AMERICAN DEPOSITARY SHARES SERIES A AND WILL PAY A GROSS DIVIDEND OF 8875 A YEAR THE SHARES HAVE A LIQUIDATION VALUE OF 25 AND MIDLAND CAN REDEEM THEM AFTER FIVE YEARS MIDLAND IS A UNIT FO HSBC HOLDINGS PLC NWNL COS 18 MILLION COMMON SHARES PRICED AT 3825 EACH THROUGH DONALDSON LUFKIN & JENRETTE SECUR CORP ROBINSONHUMPHREY CO AND DAIN BOSWORTH INC ACCORDING TO THE COMPANY CALIFORNIA 800 MILLION VARIOUSPURPOSE GENERALOBLIGATION BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 483 YIELDS RANGE FROM 25 IN 1994 TO 524 IN 2023 MOST OF THE BONDS HAVE A DOUBLEA RATING FROM MOODY'S AND A SINGLEAPLUS RATING FROM S&P BONDS DUE IN 2013 AND 2018 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P KENTUCKY HOUSING CORP 2507 MILLION 1993 SERIES B HOUSING REVENUE BONDS PRICED BY A BEAR STEARNS & CO GROUP YIELDS RANGE FROM 27 IN 1994 TO 54 IN 2014 THE BONDS BACKED BY GUARANTEED MORTGAGE LOANS HAVE TRIPLEA RATINGS FROM MOODY'S AND S&P MECKLENBERG COUNTY NC 3166 MILLION PUBLICIMPROVEMENT AND REFUNDING BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 44296 YIELDS FOR REOFFERED BONDS RANGE FROM 245 IN 1994 TO 455 IN 2006 THE BONDS HAVE TRIPLEA RATINGS FROM MOODY'S AND S&P NEW YORK STATE THRUWAY AUTHORITY 1897 MILLION OF LOCAL HIGHWAY AND BRIDGE SERVICE CONTRACT BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 3 IN 1994 TO 554 IN 2013 MOODY'S RATED THE BONDS BAA1 AND S&P ASSIGNED A TRIPLEB RATING WASHINGTON STATE 300 MILLION SERIES 1994A VARIOUSPURPOSE GENERALOBLIGATION BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 4951 YIELDS FOR REOFFERED BONDS RANGE FROM 25 IN 1994 TO 519 IN 2015 MOODY'S AND S&P RATED THE BONDS DOUBLEA FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1993211 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS AKIYAMA INC JAPAN 75 MILLION SWISS FRANCS OF 0625 NOTES WITH WARRANTS MATURING OCT 14 1997 VIA YAMAICHI BANK SWITZERLAND AT ISSUE PRICE 100 FEES 1375 FOR COMANAGERS EACH NOTE CARRIES 50 WARRANTS COPENE PETROQUIMICA DO NORDESTE SA BRAZIL 100 MILLION OF 95 EUROBONDS DUE OCT 19 2001 AT ISSUE AND FIXED REOFFER PRICE 98709 VIA SALOMON BROTHERS INTERNATIONAL LTD AT FIXED REOFFER PRICE BONDS YIELD A SPREAD OF 495 BASIS POINTS OVER COMPARABLE FIVEYEAR TREASURY PUT OPTION EXERCISEABLE ON OCT 19 1998 AT 98781 FEES 125 INTEREST PAYABLE SEMIANNUALLY CREDIT COMMERCIAL DE FRANCE FRANCE 15 BILLION FRENCH FRANCS OF 5875 EUROBONDS FOR OWN ACCOUNT DUE OCT 19 1998 AT ISSUE AND FIXED REOFFER PRICE 9926 AT FIXED REOFFER PRICE BONDS YIELD 6051 A SPREAD OF 49 BASIS POINTS OVER 575 FRENCH GOVERNMENT BOND DUE NOVEMBER 1998 FEES 03 GENERAL ELECTRIC CAPITAL CORP US PARENT 200 BILLION LIRE OF 8 EUROBONDS DUE OCT 29 1998 AT ISSUE PRICE 101575 VIA PARIBAS CAPITAL MARKETS LTD AT COMANAGERS' BREAKEVEN PRICE 997 BONDS YIELD 8075 FEES 1875 NISSHO CORP JAPAN 130 MILLION OF 075 EUROBONDS WITH TWO WARRANTS PER BOND ATTACHED AT ISSUE PRICE PAR DUE OCT 15 1997 VIA NOMURA INTERNATIONAL PLC AT COMANAGERS' BREAKEVEN PRICE 979 BONDS YIELD 075 WARRANTS EXERCISABLE BETWEEN OCT 28 AND OCT 8 1997 TERMS DUE TO BE FIXED ON OCT 16 GUARANTOR SANWA BANK LTD FEES 225 SPECIAL LEAD MANAGERS' FEE OF 015 POINT THERE IS A LONG FIRST COUPON PHILIPPINE NATIONAL OIL CO ENERGY DEVELOPMENT CORP PHILIPPINE PARENT 90 MILLION OF 725 EUROBONDS AT ISSUE AND FIXED REOFFER PRICE 9963 DUE OCT 20 1998 VIA JP MORGAN SECURITIES LTD AT FIXED REOFFER PRICE BONDS YIELD A SPREAD OF 265 BASIS POINTS OVER COMPARABLE TREASURY GUARANTOR PHILIPPINE NATIONAL OIL CO FEES 09375 INTEREST PAYABLE SEMIANNUALLY 9309290029 930929 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC PERU MAKES INITIAL PAYMENT IN EXPROPRIATION SETTLEMENT AMERICAN INTERNATIONAL GROUP INC NEW YORK SAID IT RECEIVED THE INITIAL PAYMENT FROM PERU IN A DISPUTE OVER EXPROPRIATION IN 1985 OF BELCO PETROLEUM CORP A UNIT OF ENRON OIL & GAS CO AN ARBITRATION PANEL IN 1988 AWARDED ENRON 162 MILLION FROM A GROUP OF INSURANCE COMPANIES LED BY AIG TO COVER CLAIMS FROM PERU'S EXPROPRIATION PERU AND THE CLAIMANTS EVENTUALLY AGREED TO A 185 MILLION SETTLEMENT WITH ENRON TO RECEIVE 30 MILLION AND THE REMAINDER DIVIDED AMONG THE GROUP OF INSURANCE COMPANIES AS PART OF THE AGREEMENT AIG AND THE OTHER CLAIMANTS RELEASED PERU FOR ANY CLAIMS TO THE FORMER BELCO ASSETS AND AGREED TO WITHDRAW ANY OTHER ACTIONS BEFORE THE US GOVERNMENT 9309290028 930929 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BIG ENTERTAINMENT AN OFFERING OF 12 MILLION COMMON SHARES CENTIGRAM COMMUNICATIONS CORP AN OFFERING OF ONE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES HOME HOLDINGS INC A DEBT OFFERING OF 100 MILLION OF SENIOR NOTES DUE 2003 VIA LEHMAN BROTHERS DONALDSON LUFKIN & JENRETTE SECURITIES CORP SALOMON BROTHERS INC AND GRUNTAL & CO HOMECARE MANAGEMENT INC AN OFFERING OF 2 MILLION COMMON SHARES VIA MABON SECURITIES INC SPECIALTY MATERIALS CORP A UNIT OF USINOR SACILOR AN INITIAL OFFERING OF 156 MILLION COMMON SHARES 9309290027 930929 WHAT'S NEWS BUSINESS AND FINANCE VIACOM IS TALKING TO SOUTHWESTERN BELL AND COX ENTERPRISES ABOUT THOSE TWO COMPANIES' JOINTLY INVESTING MORE THAN 1 BILLION IN THE CABLE AND ENTERTAINMENT CONCERN A CASH INFUSION THAT WOULD ENABLE VIACOM TO SWEETEN ITS 78 BILLION BID FOR PARAMOUNT VIACOM WHICH IS FACING A COMPETING 99 BILLION BID FOR PARAMOUNT FROM QVC IS ALSO CONTINUING TO TALK TO OTHER POTENTIAL INVESTORS AMID PRESSURE TO BOOST ITS OFFER GM AGREED TO SELL AN 80 STAKE IN ITS MOTORS AND WIPERSYSTEM BUSINESS TO ITT FOR 400 MILLION IN CASH THE SALE IS PART OF GM'S EFFORT TO SHED 14 OF ITS AUTOMOTIVE COMPONENTS BUSINESS AND SUPPLIES MORE CASH AT A TIME WHEN GM IS LOSING MONEY IN NORTH AMERICA GM'S CANADIAN UNIT MADE A KEY CONCESSION ON JOBLESSBENEFIT FUNDING MORE THAN A DAY BEFORE A STRIKE DEADLINE THE CANADIAN CAR UNION SAID THE UNION SAID GM AGREED TO PUMP ABOUT 339 MILLION OVER THREE YEARS INTO ITS CANADIAN JOBLESSBENEFIT FUNDS MATSUSHITA ELECTRIC SLASHED ITS EARNINGS ESTIMATE FOR ITS CURRENT YEAR AND OTHERS INCLUDING TOSHIBA ARE EXPECTED TO FOLLOW SUIT FUJITSU PLANS TO CUT RESEARCH AND DEVELOPMENT OUTLAYS THE FAMILIAR MODEL OF JAPANESE BUSINESS LONG CONSIDERED A STRENGTH MAY ACTUALLY BE A WEAKNESS ANALYSTS SAY HERTZ SAID IT WILL RAISE PRICES 12 IN MAJOR US CITIES PROMPTING OTHER CAR RENTAL FIRMS TO ANNOUNCE INCREASES THE LAW FIRM OF PAUL WEISS AGREED TO PAY THE GOVERNMENT 45 MILLION IN CONNECTION WITH ITS REPRESENTATION OF THE FAILED CENTRUST BANK DAIMLER'S MERCEDESBENZ IS EXPECTED TO NAME TUSCALOOSA ALA AS THE SITE FOR A PLANNED 300 MILLION AUTO PLANT THE COUNTY'S OFFICIALS SAID CLINTON PLANS TO UNVEIL A NATIONAL EXPORT STRATEGY THAT PROVIDES A BOOST TO COMPUTER COMPANIES AND HIS TOP TRADE ADVISERS ARE STRONGLY RECOMMENDING THAT HE LINK SOME FOREIGN AID TO THE PURCHASES OF US PRODUCTS THE WHITE HOUSE AND THE BIG THREE CAR MAKERS PLAN TO UNVEIL TODAY A JOINT RESEARCH PROGRAM TO TRIPLE THE FUEL EFFICIENCY OF US CARS OVER A DECADE THE SUPREME COURT AGREED TO HEAR THE CABLETV INDUSTRY'S CHALLENGE TO A 1992 LAW REQUIRING CABLE OPERATORS TO CARRY PROGRAMS OF LOCAL BROADCASTERS SOUTH AFRICA'S ANGLO AMERICAN AGREED TO AN ASSET SWAP VALUED AT 14 BILLION WITH SOME OF ITS INTERLOCKING COMPANIES IN AN EFFORT TO GROUP AFRICAN AND NONAFRICAN ASSETS THE FCC VOWED TO STRENGTHEN CABLETV RATE RULES IF A SURVEY FINDS THAT A 10 FCC RATE CUT WAS INADEQUATE FIAT PLANS TO RAISE 318 BILLION THROUGH SEVERAL MEASURES INCLUDING A CAPITAL INCREASE AND A SHARE SWAP WARNERLAMBERT ACKNOWLEDGED THAT SOME BIG HEALTH MAINTENANCE ORGANIZATIONS WERE BALKING AT INCLUDING ITS ALZHEIMER'S DISEASE DRUG COGNEX ON THEIR LIST OF RECOMMENDED DRUGS BONDS LEHMAN BROTHERS TREASURY INDEX 566305 UP 791 COMMODITIES OIL 1796 A BARREL UP 23 CENTS DOW JONES FUTURES INDEX 12615 OFF 095 SPOT INDEX 11898 OFF 040 9309290026 930929 BUSINESS BRIEF GRAND METROPOLITAN PLC HEUBLEIN REACHES AN ACCORD TO BUY GLEN ELLEN WINERY GRAND METROPOLITAN PLC'S HEUBLEIN INC UNIT FARMINGTON CONN AGREED TO ACQUIRE THE GLEN ELLEN WINERY FROM BENZIGER FAMILY RANCH ASSOCIATES OF GLEN ELLEN CALIF WINE INDUSTRY OFFICIALS ESTIMATE THAT HEUBLEIN WILL PAY ABOUT 80 MILLION FOR GLEN ELLEN A MAKER OF POPULAR MEDIUMPRICED WINES GLEN ELLEN SOLD FOUR MILLION CASES OF WINE IN 1992 MAKING IT THE NINTHLARGEST WINERY IN THE COUNTRY HEUBLEIN SAID HEUBLEIN ALSO ACQUIRED BENZIGER'S MG VALLEJO WINE BRAND THE BENZIGER FAMILY WILL RETAIN THE BENZIGER BRANDS THE WINE INDUSTRY IS UNDERGOING A WAVE OF CONSOLIDATIONS AS SMALL VINTERS SUCH AS GLEN ELLEN STRUGGLE TO SERVICE LARGE DEBT UNDERTAKEN IN THE 1980S DURING A PERIOD OF RAPID GROWTH IN THE INDUSTRY 9309290025 930929 MARKETING & MEDIA FCC WILL TOUGHEN RULES IF NECESSARY ON CABLETV RATES BY MELISSA LEVY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION VOWED TO STRENGTHEN CABLETELEVISION RATE REGULATION IF A SURVEY FINDS CURRENT STANDARDS INSUFFICENT JAMES QUELLO THE FCC'S ACTING CHAIRMAN TOLD A CONGRESSIONAL COMMITTEE THAT THE SURVEY IS DESIGNED TO SHOW WHETHER A 10 RATE REDUCTION ORDERED BY THE AGENCY IS ADEQUATE OR WHETHER FURTHER RATE ROLLBACKS ARE JUSTIFIED SHOULD REFINEMENTS IN OUR RULES BE SHOWN NECESSARY I WILL NOT HESITATE TO MAKE THEM TO THE EXTENT THE STATUTE ALLOWS MR QUELLO SAID NOTING THAT FURTHER ACTION PROBABLY WILL BE LEFT TO THE COMMISSION'S NEXT CHAIRMAN REED HUNDT WHO IS AWAITING SENATE CONFIRMATION SOME CABLETELEVISION SUBSCRIBERS HAVE BEEN FRUSTRATED THAT THEIR MONTHLY BILLS HAVE ACTUALLY INCREASED SINCE ENACTMENT OF NEW CABLE LEGISLATION DESIGNED TO CURB RATES THOSE CONSUMERS HAVE COMPLAINED THAT DESPITE THE RATE ROLLBACK COMPANIES HAVE MANAGED TO INCREASE THEIR PRICES BY DOING AWAY WITH SPECIAL DISCOUNTS RAISING CHARGES FOR INSTALLATION AND ADDING CHANNELS TO THE BASIC TIER OF PROGRAMS A CHANGE THAT ALLOWS THEM TO CHARGE MORE REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE TELECOMMUNICATIONS SUBCOMMITTEE QUESTIONED THE ALLEGED INDUSTRY TACTICS AND IMPLORED THE FCC TO ELIMINATE ANY UNJUSTIFIED BILLING INCREASES THE AVERAGE 10 RATE REDUCTION SET BY THE FCC WAS BASED ON RATES AS OF SEPT 30 1992 THE NEW LAW PROVIDES THAT IN THE FUTURE LOCAL GOVERNMENTS WILL REGULATE BASIC CABLETELEVISION SERVICE AND THE FCC WILL SUPERVISE RATES FOR ADDITIONAL PROGRAMMING EXCEPT FOR PREMIUM CHANNELS THE COMMISSION IS NOW SURVEYING THE LARGEST 25 CABLE SYSTEMS WHICH PROVIDE SERVICE TO 75 OF ALL SUBSCRIBERS TO ASCERTAIN THE TRUE FACTS OF CABLE RATE ADJUSTMENT MR QUELLO SAID MR QUELLO PREDICTED THAT THE SURVEY WILL FIND THAT MOST OF THE BILLING INCREASES SINCE THE LAW TOOK EFFECT THIS SEPT 1 HAVE BEEN DIRECTED TO SUBSCRIBERS WITH JUST THE MOST BASIC CABLE PACKAGE ESTIMATED BY THE INDUSTRY TO BE ONLY 6 OF ALL USERS MR QUELLO TESTIFIED THAT CONSUMERS OVERALL SHOULD SAVE 18 BILLION AS A RESULT OF THE NEW LEGISLATION WE BELIEVE THAT FURTHER CORRECTIVE ACTION IF WARRANTED SHOULD BE BASED ON FACTUAL EVIDENCE RATHER THAN ANECDOTAL PRESS ACCOUNTS OR LOCAL RATE COMPLAINTS BY WHAT WOULD PROBABLY TURN OUT TO BE A MINORITY OF NATIONAL CABLE SUBSCRIBERS MR QUELLO SAID RESPONSES TO THE SURVEY ARE DUE AT THE FCC BY FRIDAY AND THE COMMISSION WILL RELEASE RESULTS AND RECOMMENDATIONS AFTER A TWOWEEK REVIEW 9309290024 930929 BUSINESS BRIEF ALLERGAN INC AMENDED RIGHTS PROPOSAL WILL BE PUT TO HOLDERS' VOTE ALLERGAN INC IRVINE CALIF SAID AN AMENDED SHAREHOLDER RIGHTS PLAN WILL BE SUBMITTED TO A BINDING VOTE BY ITS STOCKHOLDERS AT ITS ANNUAL MEETING NEXT APRIL AT THE ANNUAL MEETING LAST APRIL SHAREHOLDERS NARROWLY APPROVED A PROPOSAL OPPOSED BY THE COMPANY DEMANDING THAT IT SUBMIT ITS POISON PILL RIGHTS PLAN TO SUCH A VOTE AFTER A REVIEW THE BOARD CONCLUDED THAT THE PLAN WAS OUT OF DATE AND MADE CERTAIN CHANGES DESIGNED TO HELP IT PROPERLY VALUE THE COMPANY IN THE EVENT OF A TAKEOVER THE AMENDMENTS STRENGTHEN THE SHAREHOLDERS' ULTIMATE CONTROL OVER THE RIGHTS PLAN ALLERGAN SAID BY INSURING THAT THE HIGHEST PRICE WOULD BE OBTAINED FOR ALL SHAREHOLDERS IF THE COMPANY WERE TO BE SOLD SEPARATELY THE EYECARE PRODUCTS CONCERN SAID ITS BOARD APPROVED A PLAN TO BUY BACK UP TO AN ADDITIONAL 36 MILLION COMMON SHARES 9309290023 930929 BUSINESS BRIEF GENERAL MOTORS CORP CADILLAC PRICE INCREASES IN '94 TO RANGE FROM ZERO TO 93 GENERAL MOTORS CORP'S CADILLAC LUXURY DIVISION SAID THE BASE PRICE OF SOME HIGHVOLUME MODELS WON'T CHANGE FROM THE CURRENT LEVELS AND OTHER NEW MODELS WILL BE PRICED AS MUCH AS 93 HIGHER THAN 1993 LEVELS THE 1994 DEVILLE WILL HAVE A BASE PRICE OF 32990 UNCHANGED FROM THE PREVIOUS MODEL THE BASE STARTING PRICE OF THE 1994 FLEETWOOD WHICH SPORTS A NEW 57LITER V8 ENGINE IS ALSO UNCHANGED AT 33990 THE ALLNEW DEVILLE CONCOURS WHICH COMES EQUIPPED WITH CADILLAC'S NORTHSTAR POWERTRAIN AND CHASSIS IS PRICED AT 36590 CADILLAC SAID THE CAR WILL NOT BE OFFERED FOR RENTAL FLEET SALE CADILLAC HAS SOLD 137780 VEHICLES THIS YEAR THROUGH AUG 31 FLAT WITH A YEAR AGO 9309290022 930929 FOREIGN EXCHANGE INVESTORS DUMP DOLLARS FOR THE MARK DRAGGING US CURRENCY BROADLY LOWER BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS AGAIN EMBRACED THE MARK TUESDAY DUMPING THE DOLLARS THEY BOUGHT LAST WEEK ON A POLITICAL CRISIS IN RUSSIA AND DRAGGING THE US CURRENCY BROADLY LOWER LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16120 MARKS DOWN FROM 16290 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10490 YEN DOWN FROM 10605 YEN STERLING WAS TRADING AT 15130 UNCHANGED ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10536 YEN AND AT 16109 MARKS DEALERS NOTED THAT FOR MUCH OF THE DAY THE DOLLAR WAS SAILING ALONG AGAINST THE MARK AS ASIAN AND EUROPEAN TRADERS REMAINED WARY OF BUYING THE GERMAN CURRENCY WITH THE STANDOFF IN RUSSIA BETWEEN PRESIDENT BORIS YELTSIN AND THE HARDLINE PARLIAMENT STILL UNRESOLVED BUT ONCE THE NORTH AMERICAN TRADING DAY WAS IN FULL SWING TRADERS DECIDED THAT MR YELTSIN'S FOES SEEMED WEAKENED AND ISOLATED AND SENSED THAT AN END TO THE CONFRONTATION WAS NEAR THAT MOVED THEM TO SELL OFF THE DOLLARS THEY HAD BOUGHT LAST WEEK WHEN THE POLITICAL CRISIS ERUPTED DROPPING THE US CURRENCY THROUGH IMPORTANT TECHNICAL LEVELS WHICH IN TURN TRIGGERED ADDITIONAL SALES THAT PUSHED THE DOLLAR EVEN LOWER THE RUSSIAN SITUATION IS CLEARLY FIZZLING OUT SAID FRANK PUSATERI VICE PRESIDENT FOREIGN EXCHANGE AT BANK OF BOSTON THAT HE SAID RETURNED THE MARKET'S FOCUS TO THE DOLLAR'S WEAKNESS BEFORE THE CRISIS THERE'S NO INHERENT REASON WHY ANY PERSON WOULD WANT TO BUY DOLLARS WITHOUT THE THREAT OF A CRISIS IN RUSSIA HE ADDED THE DOLLAR OFTEN GAINS ON NEWS OF POLITICAL TURMOIL IN RUSSIA AS THE MARKET CONSIDERS THE CURRENCY TO BE A SAFE PLACE TO STORE FUNDS THE MARK HOWEVER IS USUALLY WEAKENED BY CONFLICT IN EASTERN EUROPE DUE TO ITS PROXIMITY AND CLOSE ECONOMIC TIES TO THAT REGION BUT THE PROBLEM IS THAT WHENEVER THE DOLLAR RALLIES ON CRISIS NEWS IT THE RALLY TENDS TO BE SHORTLIVED SAID STEVEN WALKER A TRADER AT UNIBANK A/S IN NEW YORK EVERY TIME THE DOLLAR GOES UP AS A SAFE HAVEN IT COMES RIGHT BACK DOWN AGAIN TRADERS ALSO REFUSED TO BE SPOOKED BY NEWS THAT RUSSIAN POLICE HAD GIVEN AN ULTIMATUM TO MR YELTSIN'S RIVALS HOLED UP INSIDE THE RUSSIAN PARLIAMENT DEMANDING THAT THEY SURRENDER BY EARLY WEDNESDAY OR FACE A POSSIBLE POLICE ASSAULT THE MARKET HAS SHRUGGED IT OFF SAID HUGH J WALSH AN ASSISTANT VICE PRESIDENT AT ABNAMRO BANK IN NEW YORK BUT IF HE DOES GO IN THERE IN FORCE I THINK THE DOLLAR WOULD GO HIGHER HE ADDED MR WALSH NOTED THOUGH THAT THE MARKET HAS LARGELY DISMISSED THE THREAT PREFERRING TO FOCUS ON HIGH GERMAN INTEREST RATES WHICH HAVE LURED INVESTORS BY OFFERING HIGHER YIELDS THAN CAN BE OBTAINED FROM DEPOSITS IN MOST OTHER MAJOR CURRENCIES CURRENTLY GERMANY'S DISCOUNT RATE STANDS AT 625 COMPARED WITH 3 IN THE US AND 175 IN JAPAN BANK OF BOSTON'S MR PUSATERI AND OTHER TRADERS SAID THE MARKET PAID LITTLE ATTENTION TO A SURPRISINGLY ROSY REPORT ON US CONSUMER CONFIDENCE JUDGING IT TO BE NOT STRONG ENOUGH TO REVERSE THE PREVAILING VIEW THAT THE US ECONOMIC RECOVERY IS LIKELY TO REMAIN WEAK THE CONFERENCE BOARD SAID TUESDAY THAT ITS SEPTEMBER CONSUMER CONFIDENCE OM A REVISED 593 IN AUGUST A SURVEY BY DOW JONES CAPITAL MARKETS SHOWED EXPECTATIONS WERE FOR A READING OF 60 THE CONFERENCE BOARD CHARACTERIZED ITS REPORT BY SAYING CONSUMER SPIRITS IMPROVED A BIT IN SEPTEMBER BUT STILL REMAIN LOW MEANWHILE THE DOLLAR ALSO FELL AGAINST THE YEN AS THE DOLLAR SALES FOR MARKS ADDED TO EARLIER PROFITTAKING TO LEAVE THE DOLLAR LOWER 9309290021 930929 BUSINESS BRIEF BORGWARNER SECURITY CORP SUBSTANTIAL RISE IN EARNINGS EXPECTED FOR THIRD QUARTER BORGWARNER SECURITY CORP SAID IT EXPECTS PERSHARE EARNINGS FOR THE THIRD QUARTER TO BE 38 CENTS TO 40 CENTS COMPARED WITH THE 30 CENTS IT EARNED ON A PROFORMA BASIS A YEAR EARLIER THE SUPPLIER OF SECURITY SERVICES SAID IT IS ACHIEVING SIGNIFICANT EARNINGS GROWTH DESPITE SLUGGISH ECONOMIC CONDITIONS SEVERE PRICING PRESSURES IN THE SECURITY INDUSTRY AND THE HIGHER CORPORATE TAX RATE BUT THE COMPANY SAID ITS GROWTH THROUGH ACQUISITIONS HAS BEEN LOWER THAN EXPECTED IN 1993 DUE TO THE LACK OF ACQUISITION CANDIDATES AVAILABLE AT ECONOMICALLY VIABLE PURCHASE PRICES BORGWARNER SAID IT IS ALSO BENEFITING FROM ITS COSTREDUCTION EFFORTS INCLUDING THE CONSOLIDATION OF HEADQUARTERS OFFICES IN CHICAGO AND AN ONGOING PROGRAM OF COMBINING ADMINISTRATIVE SUPPORT FUNCTIONS FOR BRANCHES IN CITIES WHERE MULTIPLE OFFICES ARE SITUATED THE COMPANY SAID FOR ALL OF 1993 IT ESTIMATES PRO FORMA EARNINGS OF 145 A SHARE TO 155 A SHARE THIS COMPARES WITH PROFIT OF 130 A SHARE IN 1992 THE COMPANY WENT PUBLIC LAST MONTH IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BORGWARNER SHARES FELL 75 CENTS TO 21 9309290020 930929 BUSINESS BRIEF GENSIA PHARMACEUTICALS INC BIOTECHNOLOGY CONCERN SEES 1993 LOSS OF 54 MILLION GENSIA PHARMACEUTICALS INC A BIOTECHNOLOGY FIRM DEVELOPING A RANGE OF HEART COMPOUNDS REPORTED THAT ANALYSTS ARE ON TRACK IN FORECASTING A 1993 LOSS OF 54 MILLION OR 193 A SHARE TO 65 MILLION OR 232 A SHARE PRODUCT SALES SHOULD BE IN LINE WITH ANALYSTS' FORECASTS OF 20 MILLION TO 25 MILLION WITH TOTAL REVENUE OF ROUGHLY 40 MILLION SAID DAVID F HALE CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE SAN DIEGOBASED COMPANY FOR 1992 THE COMPANY HAD A LOSS OF 379 MILLION OR 136 A SHARE REVENUE WAS 351 MILLION INCLUDING PRODUCT SALES OF 11 MILLION SINCE GENSIA AIMS TO BOOST NEARTERM REVENUE FROM ITS INJECTABLE GENERIC DRUGS BUSINESS MR HALE TERMED REASONABLE WALL STREET'S FORECAST FOR GENSIA TO BREAK EVEN AROUND 1995 PRECISE LOSS FIGURES FOR 1993 WILL DEPEND IN PART ON THE SPEED WITH WHICH GENSIA EXPANDS CLINICAL TRIALS OF ITS EXPERIMENTAL DRUGS SUCH TESTS ARE THE MOST EXPENSIVE PART OF A BIOTECH COMPANY'S RESEARCH AND DEVELOPMENT BUDGET MR HALE SAID NOTING THE GENSIA BUDGET COULD HIT ABOUT 40 MILLION THIS YEAR 9309290019 930929 LAB NOTES BY AMAL KUMAR NAJ SCIENTISTS ARE CONVERTING PLASTICS BACK INTO CRUDE OIL AS AN ALTERNATIVE TO RECYCLING THE TRICK IS ANALAGOUS TO CONVERTING A SHEET OF ALUMINUM BACK INTO POWDERY BAUXITE OR A CAKE BACK INTO FLOUR THE OIL PRODUCED FROM PLASTICS IS LIKE ANY CRUDE OIL EXTRACTED FROM THE GROUND SAYS MEHDI TAGHIEI AN ENGINEER AT THE UNIVERSITY OF KENTUCKY'S INSTITUTE FOR MINING AND MINERALS IN LEXINGTON HE SAID THE OIL CAN BE REFINED INTO DIFFERENT GRADES OF FUEL OR USED TO MAKE NEW PLASTICS THE RESEARCHERS SAY CONVERSION CAN ELIMINATE THE NEED TO RECYCLE PLASTICS WHICH INVOLVES COMPLEX AND TEDIOUS STEPS PLASTIC SOFTDRINK BOTTLES FOR INSTANCE CAN'T SIMPLY BE MELTED TOGETHER AND RECYCLED INTO NEW PRODUCTS BECAUSE THEY CONTAIN AS MANY AS FIVE DIFFERENT POLYMERS WHICH ARE INCOMPATIBLE WITH EACH OTHER WHEN THEY ARE MELTED TO CONVERT PLASTICS INTO CRUDE OIL THE RESEARCHERS PUT THEM INTO A STAINLESS STEEL REACTOR FILLED WITH HYDROGEN AND CONTAINING AN ALUMINA SILICATE CATALYST THE REACTOR IS THEN HEATED TO 400 TO 450 DEGREES CELSIUS AT HIGH PRESSURES DR TAGHIEI SAYS THE CATALYST AND THE HYDROGEN ACT IN UNISON TO BREAK DOWN THE LONG CHAINS AND RINGS OF HYDROGEN AND CARBON WHICH MAKE UP PLASTICS INTO SMALL CHAINS WHICH ARE SIMILAR TO THOSE IN PETROLEUM OIL THE DIFFERENCE BETWEEN PLASTIC AND OIL IS THAT IN OIL MOLECULES ARE LIGHTER HE SAYS WE'RE NOW TRYING TO DEVELOP THE MOST ECONOMICAL WAY TO COMMERCIALIZE IT SAYS DR TAGHIEI WHO ESTIMATES THAT THE PLASTIC WASTES PRODUCED IN THE US CAN GENERATE OVER 80 MILLION BARRELS OF OIL A YEAR ABOUT FIVE DAYS' US SUPPLY BUCKYBALLS A RECENTLY DISCOVERED FORM OF CARBON MAY IMPROVE COPIERS' IMAGING CAPABILITIES A XEROX TEAM SAYS SINCE ITS DISCOVERY IN 1985 THE NEW FORM OF CARBON HAS SPARKED THE IMAGINATION OF THE SCIENTIFIC WORLD IT HAS PROPERTIES DISTINCT FROM THE OTHER TWO KNOWN FORMS OF CARBON GRAPHITE AND DIAMOND MOREOVER THE MOLECULE'S GEODESIC SHAPE LENDS ITSELF TO LINKING UP WITH OTHER ATOMS AND MOLECULES TO FORM NEW COMPOUNDS WITH NEW PROPERTIES BUCKYBALL CARBON NAMED AFTER THE INVENTOR OF THE GEODESIC DOME BUCKMINSTER FULLER WAS FIRST PRODUCED IN SIGNIFICANT QUANTITIES IN 1990 XEROX RESEARCHERS SAY THEY RECENTLY RECEIVED PATENTS FOR USE OF THE BUCKYBALL COMPOUNDS IN A WIDE RANGE OF APPLICATIONS IN COPIERS INCLUDING INK TONER AND DEVELOPER WE HAVE ENOUGH INFORMATION TO SAY THAT THE MATERIALS HAVE POTENTIAL BUT WE STILL HAVE A LOT OF DISCOVERIES TO MAKE SAYS RONALD ZIOLO A SENIOR SCIENTIST AT THE COMPANY HE SAYS EXPERIMENTS AT XEROX INDICATE THAT THE MATERIALS CAN IMPROVE A COPIER'S IMAGES AS A RESULT OF THE SIZE OF THE BUCKYBALL MOLECULE THE SMALLER THE CARBON PARTICLES THE HIGHER THE RESOLUTION AND BUCKYBALLS ARE ONETHOUSANDTH THE SIZE OF THE CARBON PARTICLES IN THE TONER IN TODAY'S COPIERS DR ZIOLO SAYS EXPERIMENTS ALSO HAVE YIELDED RESULTS SUGGESTING THAT THE MATERIAL MAY PRODUCE BRILLIANT COLOR IMAGES WHILE THE CARBON IN COPIERS TODAY IS BLACK AND STAYS BLACK IN SOLUTION THE SOLUBLE BUCKYBALL CHANGES TO AMBER AND RED IN SOLUTION HE SAYS THAT ADDING NEW GROUPS OF ATOMS AND MOLECULES CAN PRODUCE ADDITIONAL COLORS THE COLORS ARE SO MAGNIFICENT THAT BUCKYBALL COMPOUNDS MAY PRODUCE IMAGES THAT ARE MORE VIVID THAN IS POSSIBLE NOW DR ZIOLO SAYS PORK CHOPS AS HEALTHY AS CHICKEN INSTEAD OF TRYING TO MAKE PORK A BIT HEALTHIER BY PRODUCING LEANER HOGS RESEARCHERS AT IOWA STATE UNIVERSITY ARE TAKING A DIFFERENT APPROACH WHAT WE'RE DOING IS CHANGING THE COMPOSITION OF FATS IN THE HOGS SAYS MURRAY KAPLAN A PROFESSOR OF NUTRITION THE SCIENTISTS TOOK THE STANDARD HOG RATION AND REPLACED THE LARD WHICH CONTAINS SATURATED FAT WITH SOYBEAN OIL WHICH IS HIGH IN POLYUNSATURATED FAT THIS SEEMED DESIRABLE BECAUSE SATURATED FAT RAISES CHOLESTEROL LEVELS IN HUMANS CAUSING HEART DISEASE POLYUNSATURATED FAT HAS THE SAME NUMBER OF CALORIES BUT DOESN'T ADD TO THE CHOLESTEROL LOAD IN THE HOG RATIONS THE RESEARCHERS VARIED THE AMOUNT OF SOYBEAN OIL FROM 10 TO 40 OF THE TOTAL RATION THE PORK FROM HOGS THAT ATE THE 40 RATION CONTAINED ONLY 19 SATURATED FAT COMPARED WITH 25 IN THE STANDARD PORK DR KAPLAN SAYS THE PROPORTION OF POLYUNSATURATED FAT IN THE PORK ROSE TO 293 FROM 78 IN NORMAL PORK HE SAYS CHICKEN CONTAINS 216 SATURATED FAT AND 195 POLYUNSATURATED FAT SAYS DR KAPLAN OUR PORK IS BEGINNING TO LOOK LIKE CHICKEN HE SAYS DR KAPLAN SAYS THAT A TASTE PANEL HASN'T FOUND ANY DIFFERENCE BETWEEN THE ALTERED PORK AND THE STANDARD PORK IN APPEARANCE AND TASTE STILL THE RESEARCHERS HAVEN'T STARTED WOOING HOG RAISERS WE NEED TO FEED THE MEAT TO HUMANS TO SEE IF IT ALTERS THEIR CHOLESTEROL LEVELS BEFORE WE CAN SAY IT'S A HEALTHIER PRODUCT DR KAPLAN SAYS AN ANCIENT CHINESE HERBAL MEDICINE USED AS A HANGOVER REMEDY MAY CURB THE DESIRE FOR ALCOHOL REPORT RESEARCHERS AT THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL INJECTIONS OF THE MEDICINE CALLED XINGJIULING INTO A STRAIN OF RAT TO ALCOHOL ADDICTION SIGNIFICANTLY REDUCED THEIR CRAVING FOR ALCOHOL WITHOUT AFFECTING THEIR DESIRE FOR FOOD AND WATER THE RESEARCHERS SAY THE COMPOUND A MIXTURE OF EXTRACTS FROM SEVEN PLANTS MIGHT BE ABLE TO REDUCE HUMAN'S CRAVING TO DRINK ALCOHOL BY AS MUCH AS 60 RESEARCHERS AT UNIVERSITY OF ILLINOIS AT URBANACHAMPAIGN SAY THEY HAVE CREATED A ROBOT THAT IS CAPABLE OF HANDEYE COORDINATION ITS ELECTRONIC CAMERA LOCATES AN OBJECT AND THEN AS THE MECHANICAL ARM MOVES TOWARD IT UPDATES THE ROBOT'S BRAIN 15 TO 20 TIMES A SECOND AND CHECKS THE MOTION A THOUSAND TIMES A SECOND BECAUSE THE SIGNALS ARE SO RAPID THE ROBOT ARM MAKES A NICE SMOOTH MOTION AND GRASPS ANY OBJECT WITHIN REACH THE RESEARCHERS SAY 9309290018 930929 BUSINESS BRIEF ORBIT INTERNATIONAL INC APPAREL MAKER BROKE EVEN IN ITS FISCAL FOURTH QUARTER ORBIT INTERNATIONAL INC SAID IT BROKE EVEN IN ITS FOURTH QUARTER ENDED JUNE 30 COMPARED WITH A YEAREARLIER PROFIT REFLECTING A WEAK CANADIAN ECONOMY AND A LOSS FROM ITS STAKE IN USA CLASSIC INC MITCHELL BINDER VICE PRESIDENT FINANCE SAID THE HAUPPAUGE NY APPAREL MAKER HAD YEAREARLIER PROFIT OF 400000 OR SIX CENTS A SHARE MR BINDER SAID THE RESULTS REFLECT A LOSS AT ORBIT'S CANADIAN APPAREL UNIT WHICH MAKES OUTERWEAR AND LEATHER GARMENTS ORBIT'S EARNINGS ALSO SUFFERED FROM A LOSS AT USA CLASSIC A UNIT IT TOOK PUBLIC IN NOVEMBER ORBIT STILL HOLDS A 43 STAKE IN USA CLASSIC THAT IT ACCOUNTS FOR WITH THE EQUITY METHOD MR BINDER SAID USA CLASSIC BLAMED ITS RESULTS ON WEAKNESS IN ITS EVERLAST APPAREL LINE MR BINDER SAID ONLY ORBIT'S DEFENSEELECTRONICS BUSINESS WAS PROFITABLE ORBIT ONCE MAINLY A MILITARY CONTRACTOR HAS SOUGHT SINCE THE MID1980S TO DEEMPHASIZE ITS DEFENSE BUSINESS BY EXPANDING INTO THE APPAREL MARKET THE DEFENSE UNIT ACCOUNTS FOR 15 OF SALES MR BINDER SAID 9309290017 930929 INTERNATIONAL BRIEF VOLKSWAGEN AG MANAGEMENT BOARD REJECTS SPANISH UNIT'S RESCUE PLAN VOLKSWAGEN AG'S MANAGEMENT BOARD REJECTED A RESTRUCTURING PROPOSAL FROM ITS SPANISH SUBSIDIARY INSISTING THAT SEAT SA COME UP WITH DEEP COST REDUCTIONS TO STANCH ITS LOSSES THE UNIT IS EXPECTED TO RACK UP LOSSES OF MORE THAN 765 MILLION THIS YEAR AND WILL RECEIVE A 922 MILLION CASH BAILOUT FROM VW THE BAILOUT ISN'T AFFECTED BY VW'S REJECTION OF THE RESTRUCTURING PROPOSAL SEAT BASED ITS RESTRUCTURING PROPOSAL PRIMARILY ON AN UPTURN IN THE MARKET AND INCREASED PRODUCTION THE VW BOARD TOLD SEAT CHAIRMAN JUAN ANTONIO DIAZ ALVAREZ THAT SUCH A TACK WASN'T SUFFICIENT IT DOESN'T DO US ANY GOOD TO DISCUSS PLANS FOR INCREASED PRODUCTION THE GOAL MUST BE TO REDUCE OUR BREAKEVEN POINT SAID A VW SPOKESMAN VW SWUNG TO A 16 BILLION MARK 987 MILLION LOSS IN THE FIRST HALF IT WOULD HAVE HAD TO OPERATE ITS FACTORIES AT FULL CAPACITY JUST TO BREAK EVEN SEAT MANAGEMENT HAS BEEN TOLD TO RETURN WITH A REVISED RESCUE PLAN AS SOON AS POSSIBLE 9309290016 930929 MARKETING BRIEF NOTED ACQUISITION JOURNAL REGISTER CO A TRENTON NJ CLOSELY HELD NEWSPAPER PUBLISHING CONCERN ACQUIRED THE TIMES HERALD NEWSPAPER OF NORRISTOWN PA A SUBURB OF PHILADELPHIA TERMS WEREN'T DISCLOSED THE TIMES HERALD FOUNDED IN 1799 A DAILY NEWSPAPER WITH A CIRCULATION OF 29561 HAS BEEN OWNED BY THE STRASSBURGER FAMILY SINCE 1927 WHO'S NEWS FORBES INC SAID LOUIS S BARSONY 53 YEARS OLD A LONGTIME PUBLISHING AND ADVERTISING EXECUTIVE FOR GANNETT CO WAS NAMED PUBLISHER OF FORBES NEWSPAPERS A GROUP OF ONE MONTHLY AND 16 WEEKLY NEWSPAPERS HE SUCCEEDS CHARLES A LYONS WHO HAS LEFT THE COMPANY WILLIAM M MECHANIC WAS NAMED PRESIDENT OF NEWS CORP'S TWENTIETH CENTURY FOX UNIT IN LOS ANGELES MR MECHANIC 43 YEARS OLD IS CURRENTLY PRESIDENT INTERNATIONAL DISTRIBUTION AND WORLDWIDE VIDEO AT WALT DISNEY CO 9309290014 930929 MERCEDES PLANT SAID TO BE SET FOR ALABAMA BY HELENE COOPER AND MICHAEL J MCCARTHY STAFF REPORTERS OF THE WALL STREET JOURNAL OFFICIALS IN TUSCALOOSA ALA SAID THEY EXPECT THEIR COUNTY TO BE NAMED AS THE SITE FOR A PLANNED 300 MILLION MERCEDESBENZ AG AUTO PLANT THE 1500EMPLOYEE PLANT WHICH HAS BEEN ONE OF THE BESTKEPT ECONOMIC DEVELOPMENT SECRETS FOR FIVE MONTHS WILL BE LOCATED ON A 1000ACRE SITE IN VANCE ALA 19 MILES EAST OF TUSCALOOSA ACCORDING TO TWO TUSCALOOSA OFFICIAL CLOSE TO THE NEGOTIATIONS THEY'RE COMING ONE OF THE OFFICIALS SAID ADDING THAT HE HAD BEEN IN TALKS ALL DAY YESTERDAY WITH OTHER STATE ECONOMIC DEVELOPMENT OFFICIALS ADDED MIKE SANDERS THE MAYOR OF VANCE WE'RE VERY OPTIMISTIC THAT WE DO HAVE IT MR SANDERS IS ALSO A MEMBER OF THE BOARD OF THE TUSCALOOSA INDUSTRIAL DEVELOPMENT AUTHORITY ONE OF THE MAIN AGENCIES NEGOTIATING ON THE STATE'S BEHALF SEVERAL OFFICIALS IN TUSCALOOSA SAID EXECUTIVES OF THE DAIMLERBENZ AG SUBSIDIARY WERE IN TOWN YESTERDAY MEETING WITH LOCAL OFFICIALS IN NORTH CAROLINA WHICH HAS BEEN CONSIDERED THE LEADING CONTENDER FOR THE MERCEDES PLANT A SPOKESWOMAN FOR GOV JAMES HUNT SAID THAT AS OF YESTERDAY AFTERNOON GOV HUNT HAD NOT HEARD FROM MERCEDES ALL WEEK IN SOUTH CAROLINA A SPOKESMAN FOR GOV CARROLL CAMPBELL SAID GOV CAMPBELL ALSO HADN'T HEARD FROM MERCEDES ALL WEEK AS OF YESTERDAY MERCEDES IS EXPECTED TO ANNOUNCE TOMORROW WHERE IT WILL LOCATE ITS FIRST US ASSEMBLY PLANT ENDING MORE THAN FIVE MONTHS OF FRENETIC LOBBYING AND MUCH SPECULATION IN FIVE SOUTHERN STATES A SELECTION OF ALABAMA LONG CONSIDERED THE WILD CARD WOULD UPSTAGE ITS MORE FOREIGNINVESTMENT SAVVY NEIGHBORS THE CAROLINAS CONVENTIONAL WISDOM HAD FAVORED NORTH AND SOUTH CAROLINA WITH MORE THAN 200 GERMAN COMPANIES ALREADY LOCATED IN THE TWO STATES BY CONTRAST ALABAMA HAS A SCANT 20ODD GERMAN COMPANIES IN ADDITION THE STATE HAS A STRUGGLING EDUCATION SYSTEM THE FIFTHHIGHEST POVERTY RATE IN THE COUNTRY A HISTORY OF RACIAL PROBLEMS AND A LARGELY UNSKILLED LABOR FORCE BUT ALABAMA OFFERED MERCEDES A TANTALIZING INCENTIVE PACKAGE THE TUSCALOOSA CITY COUNCIL AND THE TUSCALOOSA COUNTY COMMISSION LAST WEEK AGREED TO PUT UP 30 MILLION TO PURCHASE AND DEVELOP THE SITE WHICH WOULD THEN BE TURNED OVER TO MERCEDES FOR 100 IN ADDITION THE STATE LEGISLATURE AT THE URGING OF GOV JAMES FOLSOM ENACTED PROPERTY CORPORATE AND INCOME TAX ABATEMENTS THAT ARE ESTIMATED TO BE WORTH MORE THAN 100 MILLION IN BUILDING ITS US PLANT MERCEDES IS FOLLOWING ARCHRIVAL BAYERISCHE MOTOREN WERKE AG IN A STRATEGY TO REDUCE DEPENDENCE ON HIGHCOST GERMAN MANUFACTURING FACILITIES BMW'S FIRST US ASSEMBLY PLANT IS SCHEDULED TO OPEN IN 1995 IN SPARTANBURG SC 9309290013 930929 SOULSEARCHING JAPAN INC WRACKED BY RECESSION TAKES STOCK OF ITS METHODS BUSINESSES MOVE TO REFORM TROUBLED MODEL ASSESS THEIR GOVERNMENT TIES FLUNKING THE CABLETV TEST BY WALL STREET JOURNAL STAFF REPORTERS JACOB M SCHLESINGER MICHAEL WILLIAMS AND CRAIG FORMAN TOKYO JAPAN INC HAD A BAD DAY YESTERDAY TOMORROW MAY BE WORSE SOME FEAR UNLESS THE VAUNTED JAPANESE BUSINESS MACHINE CHANGES THIS GLOOMY VIEW EMERGES AS THE PILLARS OF THE ESTABLISHMENT ANNOUNCED THE LATEST DISTRESSING NEWS MATSUSHITA ELECTRIC INDUSTRIAL CO SLASHED ITS EARNINGS FORECAST FUJITSU LTD SAID IT WAS HACKING NEARLY 400 MILLION FROM ITS RESEARCHANDDEVELOPMENT BUDGET A TOSHIBA CORP UNIT SAID IT PLANS TO CUT JOBS AND CLOSE TWO FACTORIES THEIR PROBLEMS COME ATOP A VERITABLE MUDSLIDE OF POOR EARNINGS AND UNNERVING CORPORATE DISLOCATIONS THAT HAVE CHARACTERIZED JAPAN'S TWOYEAROLD ECONOMIC DOWNTURN THE DURATION AND DEPTH OF THE RECESSION IS NOW CAUSING MANY TO THINK THE UNTHINKABLE THAT THE FAMILIAR MODEL OF JAPANESE BUSINESS LONG CONSIDERED A STRENGTH MAY ACTUALLY BE A WEAKNESS INDEED SOME ALREADY SEE SIGNS THAT A NEW JAPAN INC IS CASTING ASIDE CONVENTIONAL WISDOM AND DOING THINGS DIFFERENTLY CONSIDER JAPANESE QUALITY AT NIPPON STEEL CORP ONE EXECUTIVE DISCLOSES THAT JAPAN'S AUTO MAKERS DESPERATE TO STAY IN THE BLACK ARE LOWERING STANDARDS WE'RE STARTING TO GET ORDERS FROM CAR COMPANIES WHO SAY CHEAP STEEL IS BETTER EVEN IF IT HAS A FEW DEFECTS SAYS TOSHIO YONEZAWA A NIPPON STEEL GENERAL MANAGER NIPPON STEEL SAYS IT IS PREPARED TO GO DOWNMARKET WITH THEM CONSENSUSBUILDING AND BOTTOMUP DECISIONMAKING IN SOME INDUSTRY SEGMENTS IT IS SLOWING THINGS DOWN AND COSTING COMPANIES A COMPETITIVE EDGE SAY A GROWING NUMBER OF EXECUTIVES BLUECHIP COMPANIES LIKE MITSUBISHI ELECTRIC CORP ARE TURNING TO MORE ACTIVIST TOPDOWN CHIEF EXECUTIVES COZY RELATIONS WITH SUPPLIERS A RECENT STUDY SUGGESTS THAT AUTO SUPPLIERS IN JAPAN'S MUCHHERALDED KEIRETSU SYSTEM TIGHTKNIT GROUPS OF AFFILIATED COMPANIES ARE LESS PROFITABLE THAN INDEPENDENTS AND WHAT OF JAPANESE MANAGEMENT EMULATED IN BOARDROOMS AROUND THE WORLD SOME JAPANESE BOSSES ARE ABOUT TO TAKE LESSONS FROM OF ALL PEOPLE THE AMERICANS AT JAPANESE FIRMS THERE'S A RECOGNITION THAT THERE ARE THINGS THEY CAN LEARN FROM US AND EUROPEAN COMPANIES SAYS PETER ABSALOM MANAGER OF THE AMERICAN MANAGEMENT ASSOCIATION'S JAPAN OFFICE THE AGENCY PLANS TO START OFFERING SEMINARS HERE NEXT MARCH NO ONE SERIOUSLY SUGGESTS THAT JAPAN'S ECONOMY IS ABOUT TO DISINTEGRATE OR THAT THE COUNTRY IS ABOUT TO SURRENDER ITS DAUNTING GLOBAL ECONOMIC POSITION SKEPTICS IN FACT DISMISS TALK OF A CHANGED JAPAN INC AS PREMATURE FOR ONE JAPAN'S NEW REFORMMINDED POLITICAL LEADERSHIP UNDER PRIME MINISTER MORIHIRO HOSOKAWA THE FIRST GOVERNMENT SINCE 1955 TO EXCLUDE THE PROBUSINESS LIBERAL DEMOCRATIC PARTY IS LESS THAN TWO MONTHS OLD SO FAR ITS REFORMS ARE MORE STYLE THAN SUBSTANCE JAPAN'S ECONOMIC DOWNTURN IS ONLY NOW REACHING THE PAIN THRESHOLD THAT MIGHT FORCE A REAL TRANSFORMATION SOME OBSERVERS HERE SAY IT IS JUST AS PLAUSIBLE TO ASSUME THAT THE OLD JAPANESE MODEL WITH A FEW MODIFICATIONS WILL EMERGE FROM RECESSION EVEN STRONGER STILL SOME THINK THERE ARE COMPELLING REASONS TO STAND JAPAN'S OLD LOGIC ON ITS HEAD FOR STARTERS MANY OF THE ASSETS THAT MADE JAPAN A POWERHOUSE NOW APPEAR TO THREATEN IT IN A TIME OF SLOW GROWTH LONGTERM PLANNING IS LEADING TO TOO MANY DEAD ENDS LIFETIME EMPLOYMENT IS A COSTLY INEFFICIENCY STABILITY AND PREDICTABILITY BOTH THE POLITICAL AND ECONOMIC VARIETIES HAVE BOGGED THE SYSTEM DOWN THE STATUS QUO HAS BEEN HOLDING BACK NECESSARY CHANGE AND HAS BEEN POLITICALLY ECONOMICALLY AND SOCIALLY STIFLING SAYS MASAYA MIYOSHI PRESIDENT OF KEIDANREN THE LOBBYING ARM OF BIG BUSINESS POWERFUL LEGISLATOR ICHIRO OZAWA IS BLUNTER WE HAVE TO REFORM ALL OF JAPAN BEGINNING WITH THE PEOPLE FOR SOME CHANGE CAN'T COME TOO SOON AS NEW SIGNS OF DISTRESS EMERGE DAILY JAPANESE EXECUTIVES BOAST OF LONGTERM VISION YET YESTERDAY ELECTRONICS POWERHOUSE FUJITSU CONFIRMED IT WILL CUT ITS RESEARCH BUDGET 12 THE FIRST DECLINE IN A DECADE IN THIS LAND OF FULL EMPLOYMENT MANY BLUECHIP INDUSTRIAL COMPANIES THIS YEAR HAVE ALL BUT ABANDONED NEW HIRING NOT LONG AGO MORE THAN 3000 APPLICANTS SHOWED UP WHEN THE TOKYO METROPOLITAN GOVERNMENT HELD AN EXAM FOR 55 JOB OPENINGS THE DESPAIR EXTENDS INTO ALL SECTORS OF THE ECONOMY WHILE JAPAN'S INDEX OF LEADING ECONOMIC INDICATORS CONTINUES TO POINT TO A PROLONGED DOWNTURN AUGUST MOTORVEHICLE EXPORTS FELL NEARLY 15 FROM A YEAR EARLIER SALES AT LARGE RETAILERS FELL FOR THE 15TH CONSECUTIVE MONTH IN AUGUST THE BIGGEST CHANGE IN JAPAN SO FAR IS AT THE TOP THE VERY STABILITY VALUED IN SOCIETY WAS REFLECTED BY THE LDP'S FOURDECADE REIGN THE PARTY WORKED CLOSELY WITH BIG BUSINESS AND THE BUREAUCRACY AND KEPT POWER CONCENTRATED IN TOKYO NOW THE FAVORITE BUZZWORDS OF MR HOSOKAWA'S COALITION ARE DEREGULATION AND DECENTRALIZATION FOR SOME INDUSTRIES THE CONTINUED SLIDE HAS MEANT RETHINKING THE OLD FORMULAS HEAVY INVESTMENT HIGHTECH EXPERTISE COZY KEIRETSU LINKS FLEXIBLE PRODUCTION THAT HELPED THEM THRIVE AND RECOVER IN THE PAST TAKE THE STEEL INDUSTRY IN THE 1980S JAPAN'S STEEL MAKERS USED INEXPENSIVE CAPITAL TO ADD CAPACITY EQUIPMENT SPENDING SOARED TO 685 BILLION IN 1990 FROM 289 BILLION IN 1985 THE MONEY BUILT STATEOFTHEART FACTORIES TO CHURN OUT PRICEY HIGHQUALITY STEEL FOR CARS AND ELECTRONICS THE STRATEGY PURSUE THE PREMIUM MARKETS BUT WHAT SEEMED THEN LIKE SMART PLANNING NOW LOOKS LIKE A MISTAKE DEMAND DIDN'T RISE WITH NEW CAPACITY IN NAGOYA NIPPON STEEL COMPLETED A 240 MILLION PLATESTEEL LINE IN MAY THE LINE HAS NEVER OPENED AND WE DON'T KNOW WHEN IT WILL START UP SHRUGS NIPPON STEEL'S MR YONEZAWA WITH DEMAND WEAK THE COMPANY IS USING JUST 60 OF ITS ABILITY TO MAKE CERTAIN KINDS OF STEEL OR CONSIDER THE AUTOPARTS INDUSTRY SOCALLED LEAN PRODUCTION ULTRAEFFICIENT MANUFACTURING TECHNIQUES GAVE THE JAPANESE A FORMIDABLE COMPETITIVE EDGE OVER US RIVALS ONE ADVANTAGE WAS THE ABILITY TO DEVELOP AN ARRAY OF PARTS AND OPTIONS BUT VARIETY GOT OUT OF HAND NISSAN SAYS THAT AT ONE POINT IT HAD 300 DIFFERENT ASHTRAYS IN ITS CARS THAT EXCESS SAYS JARDINE FLEMING SECURITIES LTD ANALYST JONATHAN DOBSON HAS CREATED HUGE DISECONOMIES OF SCALE FOR PARTS MAKERS SINCE THEY OFTEN HAVE TO BUILD EXPENSIVE PRODUCTION LINES FOR SMALLVOLUME PARTS AVERAGE OPERATINGPROFIT MARGINS IN THE PARTS INDUSTRY MR DOBSON ESTIMATES ARE 24 OF SALES TODAY VS 8 IN 1968 TIGHT KEIRETSU TIES AMONG ASSEMBLERS AND SUPPLIERS ALLOWED FOR CLOSE INTEGRATED PLANNING AND GUARANTEED SMALLER PARTS MAKERS A CONSTANT STREAM OF BUSINESS THE ARRANGEMENT RAN SMOOTHLY WHEN SALES AND JAPAN'S ECONOMY WERE GROWING TODAY IT OFTEN LOOKS LIKE A TRAP ENGINE AND PARTS MAKER JIDOSHA BUHIN KOGYO CO MAKES 92 OF ITS SALES TO ISUZU MOTORS LTD ITS 27 OWNER UNFORTUNATELY WHEN ISUZU SNEEZES JIDOSHA BUHIN CATCHES COLD ISUZU EXPECTS TO POST A LOSS THIS YEAR JIDOSHA BUHIN MEANWHILE EXPECTS ITS SALES TO SLIDE TO 48 BILLION YEN 4528 MILLION FROM 5085 BILLION YEN LAST YEAR THERE'S A VERY STRONG ARGUMENT THAT HAVING NO TIES TO A KEIRETSU ADDS TO PROFITABILITY SAYS MR DOBSON WITH SUCH FORCES AT WORK THERE ARE SIGNS EVEN THE STRONGEST KEIRETSU GROUPS MAY BE FRAYING AT THE EDGES THAT IS GOOD NEWS FOR A LUCKY FEW SAGA TEKKOHSHO CO A NISSANFAMILY BOLT SUPPLIER RECENTLY DID SOMETHING THAT WAS ONCE ALMOST UNTHINKABLE IT WON A CONTRACT TO SUPPLY BOLTS AND SCREWS TO TOYOTA A NISSAN COMPETITOR OTHER MANTRAS OF JAPANESE MANAGEMENT CONSENSUSBUILDING SENIORITY PROMOTION AND PAY ARE ALSO BEING CHALLENGED AT COMPANIES SMALL AND LARGE WHEN HIROMICHI KIMURA BECAME PRESIDENT OF PHARMACIA BIOTECH KK FOUR YEARS AGO HE SAYS THE COMPANY'S RIGID PROMOTION SYSTEM YIELDED DILIGENT BUT UNINSPIRED EXECUTIVES WHO WERE COMPENSATED MORE BY SENIORITY THAN OUTPUT SHAKING UP THE ORDER THE 43YEAROLD BIOCHEMIST TURNED TO THE ORGANIZATIONALBEHAVIOR TEXT HE STUDIED AT STANFORD UNIVERSITY'S BUSINESS SCHOOL AND PUT HIS 140 EMPLOYEES ON PERFORMANCERELATED COMPENSATION THOSE WHO DIDN'T MEET GOALS WERE DEMOTED AND THEIR SALARIES CUT THE NOTION BEHIND THE PLAN WAS TO EMPHASIZE PERSONAL ACCOUNTABILITY NOT GROUP RESULTS I TOLD PEOPLE THEY WOULD BE REWARDED FOR PERFORMANCE THEY PERFORMED HE RECALLS IN ANOTHER PATHBREAKING MOVE SEVERAL WOMEN USUALLY RELEGATED TO LOWLEVEL JOBS IN JAPANESE OFFICES HAVE BEEN PROMOTED INTO PHARMACIA'S MANAGEMENT ONE OF THEM A JAPANESE MARKETING DIRECTOR IS ONE OF ONLY TWO WOMEN WORLDWIDE TO SIT ON A SENIOREXECUTIVE COMMITTEE FOR THE COMPANY'S PARENT SWEDEN'S PHARMACIA AB TODAY A THIRD OF MR KIMURA'S TOP JAPANESE MANAGERS ARE WOMEN WE'RE EVEN AHEAD OF THE SWEDES HE LAUGHS TURNING JAPANESE BUSINESS PRACTICES UPSIDE DOWN IS SHOWING ON PHARMACIA'S BOTTOM LINE SINCE MR KIMURA JOINED THE COMPANY ANNUAL SALES HAVE GROWN TO 66 BILLION YEN FROM 5 BILLION YEN A 93 COMPOUND ANNUAL GROWTH RATE CHANGE ALWAYS INVOLVES RISK HE SAYS BUT JAPANESE COMPANIES NEED TO TAKE THESE RISKS TAKASHI KITAOKA 62 REACHED A SIMILAR CONCLUSION WHEN HE BECAME PRESIDENT OF MITSUBISHI LAST YEAR HE TOOK OVER A BEHEMOTH WITH PLUNGING SALES AND PROFITS AND BOGGED DOWN BY SATURATED MARKETS FOR SUCH PRODUCTS AS SEMICONDUCTORS AND TELEVISION SETS OVER THE YEARS MITSUBISHI DEVELOPED A TYPICAL BOTTOMUP APPROACH TO DECISIONMAKING ANALYSTS SAY IDEAS PERCOLATED TO THE TOP AND THE BOARD'S JOB WAS MAINLY TO CHOOSE WHICH ONES THEY LIKED THE MIDLEVEL MANAGERS MEANWHILE HAD LITTLE DISCRETION ANY INVESTMENT DECISION OF MORE THAN 1 MILLION REQUIRED THE CONSENSUS OF THEIR SUPERIORS THE RESULT ANALYSTS SAY WAS PARALYSIS SO MR KITAOKA STARTED ACTUALLY MAKING PROPOSALS NOT JUST WAITING FOR THEM SAYS ONE EXECUTIVE HE POINTS OUT DIRECTIONS SUCH AS PURSUING MORE CORPORATE ALLIANCES OR ACCELERATING INVESTMENTS IN CHINA MR KITAOKA HAS ALSO CUT MANAGERS MORE SLACK ALLOWING THEM TO SPEND AS MUCH AS 5 MILLION WITHOUT CONSULTING THEIR BOSSES WHEN THINGS AREN'T MOVING FAST SAYS A COLLEAGUE THE OLD CONSENSUS STYLE WAS FINE NOW IT'S NOT ENOUGH A SIMILAR TRANSFORMATION IS BEING CALLED FOR IN GOVERNMENT PRIME MINISTER HOSOKAWA HAS ALREADY DISPENSED WITH MANY STODGY FORMALITIES A TOP BUREAUCRAT MARVELED ABOUT A RECENT MEETING AT THE PREMIER'S OFFICE THE PRIME MINISTER WAS PROPERLY DRESSED OF COURSE RECALLED THE OFFICIAL BUT HIS AIDE WAS SITTING THERE WITH NO JACKET IN SHIRT SLEEVES THAT WOULD NEVER HAVE HAPPENED BEFORE BEYOND MATTERS OF STYLE PRESSURES FOR MORESUBSTANTIVE CHANGES ARE MOUNTING WITH MANY NOW ASSERTING THAT THE JAPANESE GOVERNMENT'S INVOLVEMENT IN THE ECONOMY HURTS MORE THAN IT HELPS SOME ARGUE THAT JAPAN'S BUREAUCRATS HAVE INDEED BUNGLED THE INFORMATION REVOLUTION WHICH STOKED THE HOTTEST INDUSTRY OF THE 1990S IN THE US TELEPHONE COMPANIES CABLETELEVISION PROVIDERS MOVIE STUDIOS AND COMPUTER MAKERS ARE SCRAMBLING TO MERGE ORGANIZE JOINT VENTURES AND OFFER NEW MEDIA SERVICES THAT ISN'T HAPPENING IN JAPAN WHERE EVEN SERVICES NOW CONSIDERED BASIC IN THE US ARE TRAILING THE US PACE BY PERHAPS 10 YEARS GOVERNMENT OFFICIALS TRIED THE OLD FORMULA THAT WORKED SO WELL IN THE PAST STUDY PLAN AND GUIDE AS A RESULT THEY TOTALLY MISJUDGED THE MARKET ANALYSTS HERE SAY CABLE TV IS THE ARTERYSYSTEM OF THE NEW INFORMATION AGE YET FEWER THAN 5 OF ALL JAPANESE HOUSEHOLDS ARE HOOKED UP WHY TOO MUCH REGULATION SAYS TSURUHIKO NAMBU PROFESSOR OF ECONOMICS AT GAKUSHUIN UNIVERSITY AND THE HEAD OF AN INDUSTRY STUDY GROUP ATTEMPTING TO CHANGE THE LAWS WE HAVE SEVERAL COMPETITORS BUT WE DON'T HAVE TRUE COMPETITION IN THE US SENSE SAYS MR NAMBU SOME JAPANESE EVEN WORRY ABOUT LAGGING DEVELOPING ASIA AS WELL WE'RE AFRAID JAPAN WILL BE LEFT OUT OF THE SATELLITE BUSINESS SAYS ONE TVINDUSTRY EXECUTIVE COUNTRIES LIKE HONG KONG AND INDONESIA HAVE SATELLITES SOON THERE WILL BE THAISAT UNTIL RECENTLY THE GOVERNMENT DISCOURAGED JAPANESE COMPANIES FROM ENTERING THE GLOBAL SATELLITE MARKET HIROSHI KUMAGAI THE NEW MINISTER FOR INTERNATIONAL TRADE AND INDUSTRY SAYS THE GOVERNMENT HAS TO GET OUT OF THE CENTRALPLANNING BUSINESS THE NEW THRUST HE ADDS SHOULD BE TO TRY TO PROVIDE AN ENVIRONMENT CONDUCIVE TO ENTREPRENEURSHIP AND INNOVATION MR KUMAGAI'S MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY PERHAPS THE WORLD'S MOST FAMOUS INDUSTRIAL PLANNER IS AN UNLIKELY REVOLUTIONARY IN 1975 IT SET UP THE VENTURE ENTERPRISE CENTER TO PROVIDE SEED MONEY TO CREATE STARTUPS BUT THE EFFECTS HAVE BEEN LIMITED IN PART BECAUSE IN JAPAN VERY VERY FEW PEOPLE WANT TO START THEIR OWN COMPANIES LAMENTS KATSUHIKO UMEHARA A MITI BUREAUCRAT CHARGED WITH TRYING TO PLAN SOME ENTREPRENEURIAL SPIRIT INTO JAPAN'S ECONOMY WHAT'S THE SOLUTION NOT INDUSTRIAL POLICY SAYS MR UMEHARA THROWING HIS HANDS IN THE AIR IN FRUSTRATION WE NEED A CULTURAL REVOLUTION 9309290012 930929 HEARD ON THE STREET BAXTER INTERNATIONAL DRAGGED DOWN BY WOES BEGINS TO DRAW THE INTEREST OF BOTTOM FEEDERS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL TAKE A COMPANY IN THE BATTERED HEALTHCARE SECTOR ADD TO IT THE STIGMA OF A GUILTY PLEA IN MARCH TO VIOLATING THE US ANTIBOYCOTT LAW AND THE LOSS OF MILLIONS OF DOLLARS OF BUSINESS BECAUSE OF THAT PLEA NOW PILE ON A FEW MORE WOES SUCH AS BAXTER'S RECENT WARNING OF DISAPPOINTING THIRDQUARTER RESULTS FINALLY MIX IN BAXTER'S LONGTIME LEADER VERNON LOUCKS JR WHO INTRODUCED HIMSELF AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT LAST SPRING'S ANNUAL MEETING ONLY TO HEAR ONE SHAREHOLDER SHOUT NOT FOR LONG WHAT DO YOU GET BAXTER INTERNATIONAL A DEERFIELD ILL HOSPITALSUPPLY COMPANY WHOSE STOCK PRICE IS SO DEPRESSED HOVERING NEAR A THREEYEAR LOW THAT IT IS BEGINNING TO LOOK ATTRACTIVE TO AT LEAST A FEW CONTRARIANS WITH CASTIRON STOMACHS WE SMELL OPPORTUNITY SAYS JAMES ENGLE CHIEF INVESTMENT OFFICER OF WOOD STRUTHERS & WINTHROP A NEW YORK MONEYMANAGEMENT CONCERN I DON'T SEE THAT BAXTER COULD GET MUCH LOWER THAN THIS SAYS DANIEL LEMAITRE AN ANALYST WITH COWEN & CO WHO HAS A NEUTRAL RATING ON BAXTER IF WE'RE NOT AT THE BOTTOM WE'RE PRETTY NEAR YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE STOCK CLOSED AT 21 5/8 OFF 1/4 FANS POINT TO BAXTER'S ANNUAL DIVIDEND YIELD CURRENTLY 46 THEY ADD THAT THE SHARES TRADE FOR ONLY 10 TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS LESS THAN HALF THE MARKET MULTIPLE AND 40 BELOW SOME OTHER STOCKS IN ITS SECTOR BUT THE REAL CATALYST FOR THE STOCK COULD BE PRESSURE ON MANAGEMENT TO TURN THE COMPANY AROUND MR ENGLE AND OTHERS THINK BAXTER MIGHT GO THE WAY OF WESTINGHOUSE ELECTRIC AMERICAN EXPRESS AND KODAK COMPANIES WHOSE STOCK PRICES GOT A BOOST FROM THE ANNOUNCED OUSTERS OF THEIR CORPORATE CHIEFS OR HE SAYS IT COULD GO THE ROUTE OF SEARS ROEBUCK THE CHICAGOBASED RETAILER WHOSE LEADER HELD ON TO HIS JOB AFTER HE UNVEILED A TOPTOBOTTOM RESTRUCTURING OF THE COMPANY THIS IS PROBABLY LOUCKS'S LAST CHANCE TO SAVE HIS CAREER SAYS MR ENGLE HE HAS A YEAR HERE TO TURN THE OPERATIONS AROUND OR FACE A HOSTILE BOARD EITHER MODEL SEARS OR KODAK WORKS TO OUR ADVANTAGE SAYS LONNIE WHITLOCK A VICE PRESIDENT WITH MONEY MANAGER LOWE BROKENBROUGH TIERNEY & TATTERSALL IN RICHMOND VA A CHANGE IN MANAGEMENT CAN ONLY HELP THE SITUATION PSYCHOLOGICALLY YOU WOULD GET A LITTLE BOUNCE IF THERE WERE A CHANGE IN MANAGEMENT SAYS KENNETH ABRAMOWITZ AN ANALYST WITH SANFORD C BERNSTEIN THOUGH HE ADDS I DON'T THINK THE LEADERSHIP IS THE PROBLEM IT'S JUST A DIFFICULT ENVIRONMENT A BAXTER SPOKESMAN SAID OVER THE LAST 10 DAYS MR LOUCKS HAS MET WITH SHAREHOLDERS REPRESENTING OVER 20 OF OUR SHARES OUTSTANDING AND THE SUBJECT OF HIS LEAVING NEVER CAME UP HE ADDED THAT FOLLOWING THE MEETINGS SOME OF THESE INVESTORS HAVE INCREASED THEIR HOLDINGS OF THE STOCK BEARS ON THE STOCK SAY THAT NO MATTER WHAT HAPPENS TO MANAGEMENT PRESSURES LOOM FOR THE COMPANY'S BASIC BUSINESS BAXTER NOT ONLY SELLS ITS OWN GLOVES GOWNS AND SURGICAL KITS BUT ALSO DISTRIBUTES OTHER COMPANIES' PRODUCTS TO HOSPITALS IN THE COSTCONSCIOUS ERA OF MANAGED CARE THIS LINE OF REASONING GOES BAXTER WILL FIND IT INCREASINGLY HARD TO PUSH ITS OWN PRODUCTS A MORE LUCRATIVE BUSINESS THAN DISTRIBUTION ALONE AT LEAST WITHIN BAXTER MR LOUCKS DOESN'T APPEAR TO HAVE ANYONE POSITIONED TO IMMEDIATELY STEP INTO HIS SHOES EARLIER THIS MONTH BAXTER SAID THAT JAMES R TOBIN BAXTER'S PRESIDENT WOULD NO LONGER OVERSEE BAXTER'S CORE HOSPITALSUPPLY DIVISION WHICH ACCOUNTS FOR 4 BILLION OF BAXTER'S ROUGHLY 9 BILLION IN ANNUAL REVENUE THE HOSPITALSUPPLY BUSINESS HAS BEEN BESET BY LOW PROFIT MARGINS IN RECENT MONTHS MR LOUCKS ALSO APPEARS TO HAVE THE SUPPORT OF BAXTER'S BOARD HE HAS SAID THAT THE COMPANY'S ILLEGAL ACTIONS INVOLVING THE ARAB BOYCOTT OF ISRAEL WERE A COMPLETELY UNINTENTIONAL VIOLATION HE HAS PREVIOUSLY DENIED KNOWING OF THE ACTS THAT RESULTED IN BAXTER'S PLEA TO A SINGLE FELONY COUNT OF PROVIDING INFORMATION TO ARAB BOYCOTT AUTHORITIES WHO SUPERVISE THE ECONOMIC BOYCOTT OF ISRAEL THE BOYCOTT PROBLEM HAS LED TO MAJOR LOSSES BY BAXTER OF US GOVERNMENT AND PRIVATE HOSPITAL BUSINESS IN RECENT WEEKS CREDITRATING SERVICE STANDARD & POORS RECENTLY SWITCHED ITS OUTLOOK FOR BAXTER TO NEGATIVE FROM STABLE CITING THE UNCERTAINTY THAT BAXTER WILL BE ABLE TO MAINTAIN THE PROFITABILITY IMPROVEMENTS OF THE PAST FEW YEARS IN A CHANGING INDUSTRY ENVIRONMENT S&P AFFIRMED ITS CREDIT RATINGS FOR BAXTER INCLUDING THE SINGLEAMINUS SENIOR UNSECURED DEBT SAYS HERMAN SAFTLAS THE S&P ANALYST WHO FOLLOWS BAXTER OF MR LOUCKS LET'S FACE IT HE'S BEEN AT THE HELM OF THIS COMPANY FOR A WHILE AND PUT TOGETHER A MERGER BUT HE'S GOT A LOT OF NEGATIVE BAGGAGE TOO BUSINESS HOSITAL SUPPLIES YEAR ENDED DEC 31 1992 SECOND QUARTER JUNE 30 1993 9309290011 930929 BUSINESS BRIEF QUICK & REILLY GROUP INC SECONDPERIOD NET SOARED 91 ON 43 REVENUE BOOST DISCOUNT BROKERAGE FIRM QUICK & REILLY GROUP INC SAID SECONDQUARTER NET INCOME SOARED 91 AIDED BY STRONG INVESTOR INTEREST IN THE STOCK AND BOND MARKETS NET ROSE TO 99 MILLION OR 93 CENTS A SHARE FROM 52 MILLION OR 50 CENTS A SHARE A YEAR EARLIER REVENUE IN THE QUARTER INCREASED 43 TO 613 MILLION FROM 429 MILLION YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE QUICK & REILLY COMMON CLOSED UNCHANGED AT 38125 A SHARE THE NEW YORKBASED COMPANY SAID IT HAD A 30 PRETAX PROFIT MARGIN IN THE FIRST HALF QUICK & REILLY INC THE GROUP'S DISCOUNT BROKERAGE UNIT RECENTLY OPENED FIVE NEW BRANCH OFFICES AND COMPLETED ACQUISITION OF SPEAR REES & CO A WEST COAST BROKERAGE FIRM WHICH INCREASED THE BRANCH NETWORK TO 98 OFFICES THE COMPANY ADDED THAT ITS GROWING BIG BOARD SPECIALIST UNIT JJC SPECIALIST CORP IS ACHIEVING SIGNIFICANT ECONOMIES OF SCALE AS WELL AS ADDING NEW STOCKS IN WHICH TO MAKE A MARKET 9309290010 930929 PARAMOUNT BIDDERS SHOOT AT EACH OTHER'S STOCK BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE TAKEOVER BATTLE FOR PARAMOUNT COMMUNICATIONS INC IS BEING FOUGHT ON THE TRADING DESKS OF WALL STREET AS ACCUSATIONS FLY THAT RIVAL BIDDERS ARE TRYING TO PUMP UP THE PRICE OF THEIR OWN STOCK AND SHOOT DOWN THE OTHER'S THE STOCK PRICES ARE CRUCIAL TO THE OUTCOME BECAUSE BOTH BIDS BY VIACOM INC AND QVC NETWORK INC ARE BEING FINANCED LARGELY WITH THEIR OWN STOCK EVEN IF BOTH SIDES BOOST THE AMOUNT OF CASH IN THEIR OFFERS THEIR HIGHFLYING STOCKS ARE LIKELY TO REMAIN A KEY INGREDIENT AS MARKET PRICES OF THE TWO STOCKS HAVE GYRATED THE GAP BETWEEN THE TWO BIDS HAS FLUCTUATED BETWEEN 26 BILLION AND 19 BILLION YESTERDAY QVC'S BID WAS VALUED AT 99 BILLION OR 8313 FOR EACH PARAMOUNT SHARE VIACOM'S WAS WORTH 78 BILLION OR 6560 A SHARE AFTER VIACOM'S PROPOSED ACQUISITION WAS FIRST ANNOUNCED SEPT 12 INDIVIDUALS CLOSE TO QVC CHAIRMAN BARRY DILLER ACCUSED VIACOM CHAIRMAN SUMNER REDSTONE OF PUMPING UP VIACOM'S STOCK PRICE WITH HEAVY BUYING IN JULY AND AUGUST MR REDSTONE HAS DENIED ANY INTENT TO BOOST HIS OWN STOCK PRICE IN THE MASSIVE ANTITRUST LAWSUIT HE FILED LAST WEEK AGAINST CABLETV MOGUL JOHN MALONE WHO IS BACKING MR DILLER HE ACCUSED MR MALONE OF TRYING TO TORPEDO VIACOM'S STOCK MR MALONE DID THAT ACCORDING TO THE LAWSUIT BY HAVING TELECOMMUNICATIONS INC HIS CABLETV SYSTEM OPERATOR ANNOUNCE THE CREATION OF A NEW MUSIC CHANNEL WITH BERTELSMANN AG'S MUSIC UNIT WHICH WOULD COMPETE WITH VIACOM'S MTV MUSICVIDEO CHANNEL THAT ANNOUNCEMENT WAS MADE SEPT 16 TCI KNEW THAT THE ANNOUNCEMENT OF A TCI COMPETITOR TO ONE OF VIACOM'S KEY PROFIT CENTERS WOULD CAUSE A DROP IN THE PRICE OF VIACOM'S SHARES AFFECT THE VALUE OF THE CONSIDERATION TO BE PAID PURSUANT TO THE VIACOMPARAMOUNT MERGER AGREEMENT AND LOWER THE COST OF MAKING A COMPETING BID FOR PARAMOUNT THE VIACOM COURT PAPERS SAID IN FACT THE PRICE OF VIACOM'S CLASS B NONVOTING SHARES WHICH REPRESENT THE BULK OF VIACOM'S OFFER FOR PARAMOUNT FELL ONLY 75 CENTS TO 54875 ON SEPT 16 THE BULK OF A 14 DECLINE IN VIACOM STOCK OCCURRED AS INVESTORS ANTICIPATED THAT VIACOM MIGHT HAVE TO RAISE ITS BID IN RESPONSE TO QVC'S IN ORDER TO COMPLETE THE PARAMOUNT ACQUISITION VIACOM HAS SINCE RECOVERED ABOUT HALF THE LOST GROUND A TCI SPOKESWOMAN DECLINED YESTERDAY TO COMMENT ON THE CHARGE ABOUT THE TIMING OF THE NEW MUSICCHANNEL ANNOUNCEMENT SAYING WE FEEL THE LAWSUIT IS FRIVOLOUS AND HAVEN'T ADDRESSED ANY SPECIFIC ACCUSATIONS SINCE QVC'S BID WAS MADE NINE DAYS AGO PEOPLE CLOSE TO VIACOM HAVE TRIED TO MAKE THE CASE THAT QVC'S STOCK IS OVERVALUED AND COULD COLLAPSE IN PRICE IF PARAMOUNT'S BOARD ACCEPTED QVC'S OFFER HOWEVER ONE ANALYST WHO HAS COMPARED THE TWO STOCK PRICES TO THE EXPECTED GROWTH IN CASH FLOW OF VIACOMPARAMOUNT AND QVCPARAMOUNT HAS CONCLUDED THAT IF ANYTHING VIACOM'S STOCK PRICE LOOKS SLIGHTLY RICHER THAN QVC'S AT THESE LEVELS AS AN ILLUSTRATION OF THE EXTENT TO WHICH VIACOM EXECUTIVES HAVE BEEN REACHING TO FIND A WEAKNESS IN MR DILLER'S REPUTATION FOR MANAGERIAL SAVVY ONE QUESTIONED HIS INFATUATION WITH AN APPLE POWERBOOK COMPUTER WHILE HE WAS JOBHUNTING IN 1992 SAID ONE VIACOM OFFICIAL THIS IS THE GUY WHO ONLY DISCOVERED THE POWERBOOK A YEAR AGO LISBETH BARRON WHO FOLLOWS MEDIA AND ENTERTAINMENT STOCKS AT SG WARBURG COMPARED THE TWO STOCKS BY COMPUTING THEIR TOTAL MARKET VALUECOUNTING DEBT AND CASH ON THE BOOKS AFTER A MERGER WITH PARAMOUNT ON THE TERMS OF THEIR CURRENT OFFERS SHE CONCLUDED THAT AT YESTERDAY'S CLOSE VIACOM WAS TRADING AT A 25 PREMIUM TO THE APPROPRIATE LEVEL FOR THE EXPECTED CASHFLOW GROWTH IN VIACOMPARAMOUNT WHICH SHE TERMED THE MOST RELEVANT MEASURE OF FUTURE EXPECTED GROWTH QVC SHE FOUND WAS TRADING AT A 19 PREMIUM TO THE APPROPRIATE LEVEL FOR QVCPARAMOUNT IN BOTH CASES THEY'RE OVERVALUED BUT SLIGHTLY LESS FOR QVC SHE SAID MS BARRON ESTIMATED THAT VIACOMPARAMOUNT'S EXPECTED 1994 CASH FLOW OF 12 BILLION WOULD GROW 12 FOR THE NEXT THREE TO FIVE YEARS SHE ESTIMATED THAT QVCPARAMOUNT'S EXPECTED 1994 CASH FLOW OF 817 MILLION COULD GROW AT 14 AN EXTRA ONE OR TWO PERCENTAGE POINTS BASED ON WHAT SHE CONSIDERS MR DILLER'S ABILITY TO TURN AROUND PARAMOUNT IN A UNIQUE FASHION AND BECAUSE QVC'S EXISTING BUSINESS IS GROWING FASTER THAN VIACOM'S THE WARBURG ANALYST SAYS VIACOM'S PACKAGE OF CLASS A AND CLASS B SHARES WHICH YESTERDAY CLOSED AT A BLENDED PRICE OF 5735 SHOULD TRADE AT 46 SHE SAID QVC SHOULD TRADE AROUND 50 A SHARE COMPARED WITH ITS CLOSING PRICE YESTERDAY OF 5950 ONE RATIONALE FOR A LOFTY QVC STOCK PRICE IS CONTAINED IN THE VIACOM ANTITRUST SUIT ACCORDING TO MR REDSTONE MR MALONE CAN MAKE OR BREAK CABLETV CHANNELS BY CONTROLLING ACCESS TO ONEQUARTER OF ALL US HOMES WITH CABLE TV THE IMPLICATION IS THAT BY OPENING THE GATES TO QVCCREATED CHANNELS WITH PARAMOUNT PROGRAMMING MR MALONE CAN MAKE THE PARAMOUNT ACQUISITION A HOME RUN FOR MR DILLER SOME TRADERS THINK THE NEXT STEP FOR MR REDSTONE WILL BE TO ANNOUNCE AN INVESTMENT OF 1 BILLION OR MORE IN VIACOM BY A CABLETV COMPANY A REGIONAL TELEPHONE COMPANY OR BOTH THAT ALONE THEY SAID COULD PROMPT A SURGE IN VIACOM'S STOCK THAT WOULD BY ITSELF RAISE VIACOM'S BID THEN MR REDSTONE COULD DECIDE HOW MUCH MORE OF AN INCREASE WOULD BE NEEDED TO REMAIN COMPETITIVE WITH QVC 9309290009 930929 BUSINESS BRIEF ALEXANDER & ALEXANDER SERVICES FIRM EXPECTS IT WILL REPORT 3RDPERIOD UNSPECIFIED LOSS ALEXANDER & ALEXANDER SERVICES INC SAID IT EXPECTS TO REPORT A LOSS FOR THE THIRD QUARTER ENDING TOMORROW THE INSURANCE AND CONSULTING CONCERN SAID RESULTS WOULD REFLECT AN ADJUSTMENT IN THE AMOUNT OF REVENUE IT EXPECTS TO REALIZE FROM US MARKET HUMANRESOURCE MANAGEMENT WORK IN PROGRESS AT ITS ALEXANDER CONSULTING GROUP UNIT IT SAID THE ESTIMATE ALSO WAS AFFECTED BY AN INCREASE IN RESERVES FOR PROFESSIONAL LIABILITY CLAIMS WEAK INSURANCE PRICES AND LOWER INVESTMENT INCOME IN THE YEARAGO PERIOD THE COMPANY EARNED 88 MILLION OR 22 CENTS A SHARE ON REVENUE OF 339 MILLION YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S SHARES CLOSED AT 21875 OFF 375 CENTS 9309290008 930927 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR INCOME LEVELS IN THE US ARE DUE FOR A REBOUND AFTER POSTING BACKTOBACK MONTHLY DECLINES FOR THE FIRST TIME IN NEARLY 40 YEARS PERSONAL INCOME FELL IN JUNE AND JULY DEPRESSED IN THE LATTER MONTH BY FLOODING IN THE MIDWEST AND DROUGHT IN THE SOUTHEAST BUT A HEALTHY RISE IN WAGES AND SALARIES COMBINED WITH A POSTFLOOD REBOUND PROBABLY HELPED BOOST PERSONAL INCOME 06 IN AUGUST SAID STUART HOFFMAN CHIEF ECONOMIST AT PNC BANK CORP IN PITTSBURGH SUCH AN INCREASE WOULD HELP CLOSE THE GAP THAT HAS BEEN GROWING BETWEEN SPENDING AND INCOME MR HOFFMAN SAID PERSONAL SPENDING HAS OUTSTRIPPED INCOME FOR THREE MONTHS IN A ROW PUSHING THE SAVINGS RATE TO ITS LOWEST LEVEL IN NEARLY FOUR YEARS WE'RE NOW SEEING A LITTLE CATCHUP BETWEEN INCOME AND SPENDING PEOPLE WILL BE ABLE TO REPLENISH THEIR SAVINGS THAT WERE DRAWN DOWN IN JUNE AND JULY HE SAID PERSONAL SPENDING WHICH HAS INCREASED FOR FOUR MONTHS IN A ROW PROBABLY INCREASED AT A SLOWER CLIP IN AUGUST SAID MR HOFFMAN WHO ESTIMATED A 03 RISE THE OUTLOOK ALSO IS BRIGHTENING FOR THE HOUSING SECTOR HE SAID THE LOWEST MORTGAGE RATES IN 25 YEARS SPURRED HOUSING STARTS IN AUGUST AND PROBABLY HELPED NEWHOME SALES FOR THE MONTH MR HOFFMAN IS ESTIMATING A 33 INCREASE IN AUGUST NEWHOME SALES 9309290007 930929 TECHNOLOGY & MEDICINE DNX DUKE TAKE FIRST STEP IN ALTERING PIGS TO MAKE ORGANS TRANSPLANTABLE BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS AT DNX CORP AND DUKE UNIVERSITY SAID THEY TOOK A SIGNIFICANT STEP TOWARDS GENETICALLY ALTERING PIGS SO THEIR HEARTS LIVERS AND OTHER ORGANS COULD BE TRANSPLANTED TO HUMANS THE RESEARCHERS SAID THEY HAD SUCCEEDED IN INSERTING SOME HIGHLY SPECIALIZED HUMAN GENES INTO PIGS THE SCIENTISTS' EVENTUAL HOPE IS THAT THESE HUMAN GENES WILL PROTECT PIG HEARTS LIVERS OR OTHER ORGANS FROM A SEVERE AND IMMEDIATE REJECTION BY THE IMMUNE SYSTEM OF A HUMAN PATIENT THE NEXT STEP FOR THE SMALL BIOTECHNOLOGY COMPANY AND ITS DUKE UNIVERSITY CONSULTANTS IS TO BREED A NEW GENERATION OF THE GENETICALLY ALTERED PIGS AND THEN SEE IF THEIR ORGANS WILL WORK IN PRIMATES SUCH AS CHIMPANZEES OR BABOONS THE PRINCETON NJBASED COMPANY SAID IT ADDED THAT IF PROGRESS CONTINUES AT ITS PRESENT RATE TRIALS INVOLVING HUMANS MIGHT BEGIN IN THREE TO FIVE YEARS DNX STOCK SURGED 37 ON THE NEWS CLOSING AT 4625 UP 125 IN OVERTHECOUNTER TRADING THE DNX AND DUKE RESEARCHERS PICKED PIGS AS A POTENTIALLY PLENTIFUL SOURCE OF TRANSPLANTABLE ORGANS BECAUSE THEIR ORGANS ARE ABOUT THE RIGHT SIZE MOREOVER UNLIKE CHIMPANZEES OR BABOONS PIGS CAN BE EASILY BRED IN CAPTIVITY IN LARGE NUMBERS EXPLAINED STEVEN HOLTZMAN PRESIDENT OF DNX BIOTHERAPEUTICS THE SUBSIDIARY CARRYING OUT THE RESEARCH PIGS ARE ALSO LESS LIKELY TO CARRY VIRUSES THAT MIGHT HARM HUMANS MR HOLTZMAN SAID IN A TELEPHONE INTERVIEW FROM LONDON WHERE HE'S ATTENDING A SCIENTIFIC CONFERENCE THE USE OF XENOGRAFTS AS TRANSPLANTS OF TISSUES FROM ANOTHER SPECIES ARE CALLED ARE IMPOSSIBLE AT THE MOMENT THE TISSUES ARE SO FOREIGN THAT WITHIN HOURS OR EVEN MINUTES THEY WILL BE REJECTED BY THE IMMUNE SYSTEM OF A HUMAN PATIENT THIS QUICK ACUTE REJECTION WHICH IS ONLY RARELY ENCOUNTERED IN HUMANTOHUMAN TRANSPLANTS IS INITIATED BY A PART OF THE IMMUNE SYSTEM DESIGNED TO KILL OFF INVADING BACTERIA IT INVOLVES A CHAIN REACTION OF SEVERAL PROTEINS COLLECTIVELY KNOWN AS COMPLEMENT THE HUMAN IMMUNE SYSTEM ONCE IT TURNS THE COMPLEMENT SYSTEM ON MUST ALSO TURN IT OFF THE TURNOFF SWITCHES ARE PROTEINS THAT INTERRUPT THE COMPLEMENT CHAIN REACTION THESE COMPLEMENT INHIBITION FACTORS AS THEY ARE CALLED ARE SPECIFIC TO EACH SPECIES SO THAT HUMAN COMPLEMENT IS AFFECTED ONLY BY HUMAN COMPLEMENT INHIBITION FACTORS IT IS THE GENES FOR THESE HUMAN COMPLEMENT INHIBITION FACTORS THAT THE DNX SCIENTISTS AND JEFFREY L PLATT OF DUKE A PIONEER IN XENOGRAFT RESEARCH ARE ATTEMPTING TO PUT INTO PIGS IN HOPES THAT THEY'LL PROTECT THE PIG ORGANS FROM REJECTION BY THE HUMAN COMPLEMENT SYSTEM IN REPORTS TO A CONFERENCE ON XENOGRAFTS HELD IN CAMBRIDGE ENGLAND DR PLATT AND THE DNX RESEARCHERS SAID THEY HAD SUCCESSFULLY INSERTED THREE OF THE HUMAN COMPLEMENT INHIBITING GENES INTO MICE AND THE GENES HAD FUNCTIONED HEARTS FROM THE ALTERED MICE WERE PROTECTED AGAINST HUMAN COMPLEMENT CARRIED BY HUMAN BLOOD PUMPED THROUGH THE HEART THEY ALSO REPORTED THAT THEY HAD INSERTED TWO OF THE HUMAN COMPLEMENT INHIBITING GENES INTO AN UNDISCLOSED NUMBER OF PIGS AND THAT THE GENES PRODUCED THE INHIBITING FACTORS THE GENETICALLY ALTERED PIG OR PIGS WILL BE USED TO FOUND A LINE OF PIGS THAT WILL BE THE SOURCE OF ORGANS FOR FURTHER EXPERIMENTS EVEN IF THE CONCEPT PROTECTS PIG ORGANS FROM ACUTE COMPLEMENT REJECTION A MAJOR UNKNOWN STILL WOULD HANG OVER THE USE OF PIG ORGANS IN HUMANS IT'S NOT KNOWN WHETHER A SECONDARY IMMUNE DEFENSE THE ONE THAT REJECTS HUMANTOHUMAN TRANSPLANTS WILL REACT MORE STRONGLY OR LESS STRONGLY AGAINST AN ANIMAL ORGAN SO FAR NO ANIMAL ORGAN HAS SURVIVED THE HUMAN COMPLEMENT ATTACK LONG ENOUGH FOR THIS SECONDARY DEFENSE TO COME INTO PLAY MR HOLTZMAN EXPLAINED 9309290006 930929 NATIONAL MEDICAL POSTS HIGHER NET FOR FIRST PERIOD BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC REPORTED THAT FISCAL FIRSTQUARTER NET INCOME MORE THAN DOUBLED DUE TO AN ACCOUNTINGCHANGE BENEFIT HOWEVER OPERATING PROFIT DECLINED AND THE COMPANY SAID ITS RESULTS WERE HURT BY THE WEAK ECONOMY AND BY THE EFFECTS OF LITIGATION AND GOVERNMENT INVESTIGATIONS NET INCOME IN THE QUARTER ENDED AUG 31 ROSE TO 1022 MILLION OR 62 CENTS A SHARE BOLSTERED BY THE ACCOUNTINGCHANGE BENEFIT TOTALING 601 MILLION IN THE YEAREARLIER QUARTER NET INCOME WAS 506 MILLION OR 30 CENTS A SHARE EXCLUDING THE ONETIME ACCOUNTING ADJUSTMENT PROFIT FELL 17 TO 421 MILLION OR 25 CENTS A SHARE THE LATEST QUARTER ALSO INCLUDED AN 116 MILLION GAIN FROM DISPOSALS OF FACILITIES AND OTHER INVESTMENTS REVENUE IN THE LATEST QUARTER FELL 5 TO 8918 MILLION FROM 9387 MILLION WE DO NOT EXPECT ANY DRAMATIC TURNAROUND IN OUR EARNINGS PERFORMANCE UNTIL WE BEGIN TO RESOLVE OUR LEGAL PROBLEMS SAID JEFFREY C BARBAKOW THE NEWLY INSTALLED CHAIRMAN AND CHIEF EXECUTIVE OFFICER EMPHASIZED THAT WHAT ULTIMATELY DRIVES THE VALUE OF NME FOR SHAREHOLDERS IS CASH FLOW AND THAT REMAINS SOLID DURING A TELEPHONE CALL AFTER THE EARNINGS ANNOUNCEMENT NATIONAL MEDICAL TOLD ANALYSTS THAT IT IS NEGOTIATING SOME CHANGES IN ITS REVOLVING BANK AGREEMENTS THAT WILL TIGHTEN COVENANTS THE CHANGES SHOULD NOT JEOPARDIZE THE DIVIDEND A SPOKESMAN SAID BUT AT LEAST ONE ANALYST DETECTED A CHANGE IN THE COMPANY'S POSITION THEY HAVE ALWAYS BEEN EMPHATIC BEFORE THAT THE DIVIDEND WAS SAFE THIS TIME THEY WERE MORE CAUTIOUS SAYING THEY COULDN'T PREDICT THE FUTURE SAID JOYCE ALBERS AN ANALYST AT FIRST BOSTON REVENUE AND OPERATING PROFIT INCREASED AT ACUTECARE HOSPITALS AND DECLINED FOR REHABILITATION HOSPITALS NATIONAL MEDICAL SAID THE PSYCHIATRIC DIVISION RECORDED AN OPERATING LOSS OF 97 MILLION NATIONAL MEDICAL DOESN'T HAVE ANY EVIDENCE THAT DOCTORS AREN'T REFERRING PATIENTS TO ITS HOSPITALS THE SPOKESMAN SAID SOME ANALYSTS HAVE WARNED THAT DOCTORS MIGHT STOP SENDING PATIENTS BECAUSE OF THE GOVERNMENT'S ANNOUNCEMENT LAST MONTH THAT IT WAS CONDUCTING A CRIMINAL INVESTIGATION OF THE COMPANY NATIONAL MEDICAL ACKNOWLEDGES THAT ITS RESULTS HAVE BEEN HURT BY BAD PUBLICITY ABOUT ALLEGED IMPROPER PRACTICES AT ITS PSYCHIATRIC HOSPITALS AS WELL AS FEDERAL BUREAU OF INVESTIGATION RAIDS LAST MONTH AT MORE THAN 20 FACILITIES ACROSS THE COUNTRY IN ADDITION THE COMPANY HAS CHARGED SEVERAL BIG INSURANCE COMPANIES WITH CONSPIRING TO DIVERT PATIENTS FROM ITS HOSPITALS THOSE COMPANIES IN TURN ARE SEEKING RECOVERY OF HUNDREDS OF MILLIONS OF DOLLARS IN ALLEGEDLY FRAUDULENT CLAIMS FILED BY THE COMPANY IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE NATIONAL MEDICAL SHARES CLOSED AT 8 DOWN 125 CENTS 9309290005 930929 RIEGLE HEAD OF SENATE BANKING PANEL AND ONE OF THE KEATING FIVE TO RETIRE BY DAVID ROGERS AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SENATE BANKING COMMITTEE CHAIRMAN DONALD RIEGLE TARNISHED BY HIS ROLE IN THE KEATING FIVE SAVINGSANDLOAN SCANDAL ANNOUNCED HE WOULD RETIRE AFTER NEARLY THREE DECADES IN CONGRESS MR RIEGLE'S DECISION NOT TO SEEK REELECTION OPENS THE WAY FOR SEN PAUL SARBANES A VOCAL PROPONENT OF LOWINTEREST RATES TO TAKE OVER THE COMMITTEE MR SARBANES D MD A FREQUENT CRITIC OF THE FEDERAL RESERVE HAS INTRODUCED A BILL THAT WOULD MAKE THE FED MORE ACCOUNTABLE TO THE PUBLIC AND CRITICS FEAR MORE SENSITIVE TO POLITICAL PRESSURE DESPITE HIS TROUBLES MR RIEGLE'S ANNOUNCEMENT STUNNED COLLEAGUES AND COMES AT A TIME WHEN DEMOCRATS ARE FIGHTING TO HOLD ONTO A WORKING MAJORITY IN THE SENATE A MICHIGAN DEMOCRAT HE HAD SHOWN SIGNS OF PUTTING UP A FIGHT AT HOME AND WITH A GOVERNOR'S RACE NEXT YEAR AS WELL THE BIG INDUSTRIAL STATE NOW BECOMES A POLITICAL BATTLEGROUND FOR THE CLINTON ADMINISTRATION'S AGENDA OF HEALTHCARE REFORM AND THE NORTH AMERICAN FREE TRADE AGREEMENT SEN RIEGLE'S DEPARTURE ENDS AN OFTEN STORMY CONGRESSIONAL CAREER THAT BEGAN IN 1966 WHEN HE WAS ELECTED TO THE HOUSE AS A REPUBLICAN CLASSMATE OF GEORGE BUSH IN THE LAST CONGRESS HE WAS REBUKED BY THE SENATE ETHICS COMMITTEE FOR HIS DEALINGS WITH THE FORMER THRIFT EXECUTIVE CHARLES KEATING AND HE IS THE THIRD SENATOR TO RETIRE AFTER BEING DISCIPLINED IN THE CASE ARIZONA SEN DENNIS DECONCINI ALSO REBUKED BY THE PANEL ANNOUNCED EARLIER THIS MONTH THAT HE WOULDN'T SEEK REELECTION AND FORMER CALIFORNIA SEN ALAN CRANSTON CHOSE TO RETIRE LAST YEAR AFTER BEING REPRIMANDED FOR HIS LEADING ROLE IN THE INFLUENCEPEDDLING SCANDAL AT THE TIME THE ETHICS PANEL'S LEADERSHIP WAS CRITICIZED FOR NOT BEING MORE SEVERE IN ITS PUNISHMENTS THE RECORD TODAY SHOWS THE HARSHNESS OF LEAVING THE FINAL JUDGMENT TO VOTERS AMONG THE KEATING FIVE THE ONLY POLITICAL SURVIVORS ARE SEN JOHN MCCAIN R ARIZ AND SEN JOHN GLENN D OHIO BOTH OF WHOM WON REELECTION LAST YEAR ON THE BANKING COMMITTEE MESSRS RIEGLE AND SARBANES ALMOST ALWAYS VOTED TOGETHER BOTH SUPPORTED A 1991 LAW THAT TIGHTENED BANKING REGULATION NEITHER HAS SHOWN MUCH ENTHUSIASM FOR SUCH SWEEPING PROPOSALS AS ALLOWING BANKS TO BRANCH NATIONWIDE OR TO BECOME MORE DIRECTLY INVOLVED IN THE SECURITIES AND INSURANCE BUSINESSES MR SARBANES A 60YEAROLD RHODES SCHOLAR SEEMS FAR MORE INTERESTED IN MONETARY POLICY AND HOUSING ISSUES THAN IN BANKING ALTHOUGH HESITANT ABOUT EXERTING HIS OWN LEADERSHIP HE IS A STRONG BEHINDTHESCENES ALLY OF MAJORITY LEADER GEORGE MITCHELL AND AS A PAST CHAIRMAN OF THE JOINT ECONOMIC COMMITTEE AND SENIOR MEMBER OF THE SENATE FOREIGN RELATIONS COMMITTEE HE HAS A STRONG BACKGROUND IN INTERNATIONAL AFFAIRS BEYOND BANKING MR RIEGLE'S DECISION NOT TO SEEK REELECTION NEXT YEAR HAS IMPLICATIONS FOR THE DEBATE OVER HEALTHCARE REFORM IN HIS REMARKS YESTERDAY THE 55YEAROLD DEMOCRAT SIGNALED HE WANTS A MAJOR ROLE AS CHAIRMAN OF THE SENATE FINANCE HEALTH SUBCOMMITTEE REACHING AGREEMENT WITH REPUBLICANS WOULD BE EASIER HE SAID IF HE WAS NOT OTHERWISE ENGAGED IN A PARTISAN CAMPAIGN JUST 28 WHEN HE WAS FIRST ELECTED TO CONGRESS MR RIEGLE JOINED THE REPUBLICAN FACTION AGAINST THE VIETNAM WAR LED BY THEN CALIFORNIA REP PETE MCCLOSKY A YEAR AFTER MR MCCLOSKY'S DOOMED CHALLENGE TO RICHARD NIXON IN 1972 MR RIEGLE SWITCHED TO THE DEMOCRATIC PARTY AND IN 1976 WON ELECTION TO THE SENATE IN RECENT MONTHS SEN RIEGLE HAS BEEN ADVOCATING CONSOLIDATING THE BANK REGULATORY AGENCIES AS A WAY TO REDUCE SUPERVISORY DUPLICATION MANY BANKING INDUSTRY LOBBYISTS EXPECT THAT HE WILL TRY TO PUSH THE BILL THROUGH BEFORE LEAVING THE SENATE 9309290004 930921 REVIEW & OUTLOOK EDITORIAL CSPAN CHAOS LAST YEAR CONGRESS INSISTED ON OVERRIDING PRESIDENT BUSH'S VETO OF A BILL TO REREGULATE CABLE TELEVISION THE BILL'S SPONSORS PROMISED THAT MOST CONSUMERS WOULD SEE LOWER CABLE BILLS NOW MEMBERS ARE BEING FLOODED WITH COMPLAINTS FROM CONSUMERS THAT REREGULATION IS OFTEN TURNING OUT TO MEAN HIGHER CABLE BILLS AND DISRUPTIONS ONE OF THE MOST UNFORTUNATE RESULTS OF THE REREGULATORS' HANDIWORK IS THAT SOME SYSTEMS ARE PULLING THE PLUG ON CSPAN THE POPULAR AND ENORMOUSLY USEFUL PUBLIC AFFAIRS CHANNEL THAT COVERS CONGRESS CSPAN HAS LOST 15 MILLION SUBSCRIBERS BECAUSE SOMETHING CALLED A MUSTCARRY RULE REQUIRES CABLE SYSTEMS TO CARRY THE SIGNALS OF ANY NEARBY TV STATION THAT DEMANDS IT THIS MEANS THAT TO MAKE WAY FOR LOCAL STATIONS CROWDED CABLE SYSTEMS MUST KNOCK SOMETHING OFF THE AIR CSPAN FAMOUS FOR CARRYING ONLY TALKING HEADS IS OFTEN THE FIRST TO GO UNTIL NOW CSPAN HAS HAD AN UNBROKEN GROWTH PATH WHEN IT STARTED IN 1979 IT REACHED ONLY 25 MILLION HOUSEHOLDS EARLY THIS YEAR IT WAS AVAILABLE TO 59 MILLION HOUSEHOLDS OR 95 OF THOSE HOMES WITH CABLE SINCE SEPTEMBER 1 WHEN CABLE SYSTEMS BEGAN TO MODIFY THEIR LINEUP TO MEET THE MUSTCARRY RULE MORE THAN ONE MILLION SUBSCRIBERS HAVE SEEN SERVICE CUT BACK ON ONE OF CSPAN'S TWO CHANNELS SOME OF THE SERVICE REDUCTIONS VERGE ON THE BIZARRE IN STUEBENVILLE OHIO THE LOCAL CABLE SYSTEM HAD TO ADD A PBS STATION FROM PITTSBURGH PA IT NOW CARRIES SIGNALS FROM FOUR PUBLIC TV STATIONS BUT NO LONGER OFFERS CSPAN IN ALAMOGORDO NM SIMMONS CABLE DROPPED CSPAN AFTER IT WAS REQUIRED TO ADD THE SIGNAL OF A RELIGIOUS BROADCASTER FROM ROSWELL 118 MILES AWAY LOCAL VIEWERS ALREADY HAD ACCESS TO A LOCAL RELIGIOUS STATION FOR SIMILAR REASONS CSPAN 2 HAS BEEN CUT BACK TO HALF TIME IN ALEXANDRIA VA HOME TO MANY CONGRESSIONAL EMPLOYEES EARLIER THIS YEAR THE SUPREME COURT REJECTED A PLEA TO DELAY IMPLEMENTATION OF THE MUSTCARRY RULE BUT CSPAN HASN'T GIVEN UP TRYING IT HAS JOINED IN A LAWSUIT WITH TURNER BROADCASTING CHARGING THAT THE RULE VIOLATES THE FIRST AMENDMENT RIGHTS OF CABLE OPERATORS SHOULD IT LOSE CSPAN PRESIDENT BRIAN LAMB WORRIES THAT CONGRESS MAY PASS A CURE FOR HIS PROBLEM THAT WOULD BE WORSE THAN THE DISEASE SOME MEMBERS WANT A LAW THAT WOULD REQUIRE CABLE SYSTEMS TO CARR CSPAN AND THUS FORCE THEM TO BUMP SOMEONE ELSE OFF THE AIR INSTEAD I AM TOTALLY OPPOSED TO HAVING POLITICIANS REQUIRE SOMETHING BE AIRED EVEN IF IT'S MY NETWORK MR LAMB TOLD US NO DOUBT ONE OF HIS CONCERNS IS THAT IF MEMBERS OF CONGRESS CAN MANDATE THAT CSPAN BE CARRIED THEY MAY SOMEDAY PUT PRESSURE ON CSPAN TO COVER OR NOT COVER CERTAIN EVENTS TOM HAZLETT A CABLE EXPERT AT THE UNIVERSITY OF CALIFORNIA AT DAVIS NOTES THAT THE STATESPONSORED NETWORK THAT COVERS CALIFORNIA POLITICS CALLED CALSPAN CLEARLY CATERS TO THE AGENDA OF LEGISLATORS RATHER THAN VIEWERS CONGRESS COULDN'T RESIST TINKERING WITH THE CABLE INDUSTRY BUT RATHER THAN ENCOURAGING COMPETITION TO BREAK DOWN THE ARTIFICIAL MONOPOLIES CABLE COMPANIES NOW ENJOY CONGRESS IMPOSED PRICE CONTROLS THE ENSUING FIASCO WAS PREDICTABLE NO DOUBT CONGRESS WILL HOLD HEARINGS SOON AT WHICH MEMBERS WILL WONDER WHAT WENT WRONG THEY SHOULD MAKE INTERESTING VIEWING ON CSPAN THAT IS OF COURSE IF YOUR LOCAL CABLE SYSTEM IS STILL CARRYING IT IN A RECENT EDITORIAL CSPAN CHAOS SEPT 21 WE REFERRED TO CALSPAN AS A STATESPONSORED NETWORK CATERING TO CALIFORNIA'S LEGISLATORS WE STAND CORRECTED THE INDEPENDENT NETWORK IS NOW CALLED THE CALIFORNIA CHANNEL AND GETS ITS FUNDING FROM CORPORATIONS AND FOUNDATIONS NOT THE STATE 9309290002 930929 BOARD OF CONTRIBUTORS THE HEALTH PLAN'S FINANCING GAP BY MARTIN FELDSTEIN FINANCING THE CLINTON HEALTH PLAN WOULD REQUIRE SUBSTANTIALLY MORE TAX REVENUE THAN THE ADMINISTRATION ADMITS UNLESS THERE IS RATIONING AND GOVERNMENT CONTROLS ON THE USE OF MEDICAL CARE THE EXPANDED HEALTH INSURANCE BENEFITS WOULD COST MUCH MORE THAN THE PLAN PROJECTS AND THE CHANGES IN THE BEHAVIOR OF FIRMS AND INDIVIDUAL TAXPAYERS CAUSED BY THE PLAN WOULD REDUCE TOTAL GOVERNMENT REVENUE BY AT LEAST 50 BILLION A YEAR AT 1997 LEVELS THERE ARE TWO PRIMARY REASONS THAT THE ACTUAL INSURANCE COSTS WOULD EXCEED ADMINISTRATION PROJECTIONS MEDICARE AND MEDICAID SAVINGS WOULD BE SMALLER THAN PROJECTED AND THE PUBLIC'S UTILIZATION OF MEDICAL SERVICES WOULD BE GREATER THE CLINTON PLAN CLAIMS THAT CAPS ON MEDICARE AND MEDICAID SPENDING WOULD CUT THE RECENT DOUBLEDIGIT RATES OF SPENDING GROWTH TO ONLY 4 A YEAR WITHIN FIVE YEARS AS A RESULT MEDICARE AND MEDICAID SPENDING WOULD THEN BE 20 BELOW THE AMOUNT THAT IS NOW PROJECTED WITHOUT THE CLINTON PLAN NO DETAILS ARE GIVEN ABOUT THE REDUCTIONS IN CARE THAT WOULD BE NEEDED TO ACHIEVE THESE MASSIVE SPENDING CUTS THEY CANNOT BE ACHIEVED AS MEDICARE SAVINGS HAVE IN THE PAST BY SHIFTING COSTS TO OTHER PATIENTS SINCE THE CLINTON HEALTH PLAN WOULD BE PAYING THE BILLS FOR THOSE OTHER PATIENTS AS WELL NOR CAN A 20 CUT IN OUTLAYS BE ACHIEVED BY REDUCING WASTE FRAUD AND ABUSE IT WOULD REQUIRE SUBSTANTIAL REDUCTIONS IN THE ACTUAL VOLUME OF SERVICES GIVEN TO THE AGED AND THE POOR IT'S NOT SURPRISING THAT MEMBERS OF THE DEMOCRATIC LEADERSHIP IN CONGRESS HAVE ALREADY MADE IT CLEAR THAT THEY WILL OPPOSE SUCH CUTS IN HEALTH CARE SPENDING EVEN A 10 REDUCTION IN MEDICARE AND MEDICAID OUTLAYS WOULD BE A REMARKABLE AND UNPRECEDENTED ACHIEVEMENT IT IS AS LARGE A CUT IN THESE POLITICALLY SENSITIVE PROGRAMS AS CAN CREDIBLY BE IMAGINED IT WOULD NEVERTHELESS LEAVE A FINANCING GAP EQUAL TO HALF OF THE PLAN'S PROJECTED 20 DECLINE IN MEDICAREMEDICAID OUTLAYS AT 1997 LEVELS OF MEDICARE AND MEDICAID SPENDING THAT'S EQUAL TO 35 BILLION A YEAR THE ACTUAL COSTS OF THE CLINTON PLAN WOULD ALSO EXCEED THE ADMINISTRATION'S PROJECTIONS BECAUSE UTILIZATION WOULD INCREASE BY MORE THAN THE ADMINISTRATION ASSUMES THE PLAN INCREASES INSURANCE COVERAGE SUBSTANTIALLY COVERING THE 37 MILLION WHO NOW LACK FORMAL INSURANCE RAISING EVERYONE'S INSURANCE TO THE STANDARD OF THE FORTUNE 500 COMPANIES COVERING ALL PREEXISTING CONDITIONS AND INCLUDING SOME CARE FOR MENTAL HEALTH AND SUBSTANCE ABUSE AN INCREASE IN INSURANCE COVERAGE INEVITABLY INCREASES THE UTILIZATION AND PROVISION OF MEDICAL SERVICES THE GOVERNMENT ACTUARIES RECOGNIZE THAT BUT SUBSTANTIALLY UNDERESTIMATE THE LIKELY MAGNITUDE OF THE INCREASE THIS UNDERESTIMATION OCCURS BECAUSE THE ACTUARIES BASE THEIR ESTIMATES OF UTILIZATION UNDER THE CLINTON PLAN ON EXPERIMENTS AT THE RAND CORP IN THE 1970S IN WHICH SAMPLES OF INDIVIDUALS WERE INDUCED TO SWAP THEIR REGULAR HEALTH INSURANCE POLICIES FOR NEW RAND POLICIES THAT HAD DIFFERENT DEDUCTIBLES AND COINSURANCE RATES THE RAND ANALYSTS FOUND THAT INDIVIDUALS WITH MORE COMPREHENSIVE INSURANCE USED MORE HEALTH SERVICES BUT CHANGING THE INSURANCE POLICIES FOR A SAMPLE OF ISOLATED INDIVIDUALS IN THIS WAY DOES NOT ALTER THE PREVAILING STANDARD OF CARE IN A COMMUNITY THE RAND STUDY THUS MEASURES THE EXTENT TO WHICH INDIVIDUALS WITH MORE INSURANCE INCREASE THEIR DEMAND FOR CARE BUT IT TELLS US NOTHING ABOUT HOW THE PREVAILING STANDARD OF CARE WOULD CHANGE IF EVERYONE HAD THE COMPREHENSIVE INSURANCE PROPOSED IN THE CLINTON PLAN IT IS OF COURSE DIFFICULT TO JUDGE HOW MUCH THE INCREASED INSURANCE PROVIDED BY THE CLINTON PLAN WOULD CHANGE THE PREVAILING STANDARD OF CARE AND THEREFORE BY HOW MUCH MORE IT WOULD RAISE THE VOLUME AND INTENSITY OF MEDICAL CARE THAN THE REACTIONS PREDICTED BY THE RAND EXPERIENCE BUT THE EFFECT OF PROVIDING UNIVERSAL COMPREHENSIVE INSURANCE IS LIKELY TO BE VERY SUBSTANTIAL A VERY CONSERVATIVE ESTIMATE WOULD BE THAT TOTAL PERSONAL HEALTH SPENDING WOULD BE INCREASED BY AT LEAST 5 A 1997 INCREASE OF 35 BILLION COMBINING THE ADMINISTRATION'S OVEROPTIMISM ABOUT MEDICAREMEDICAID SAVINGS AND ITS UNDERSTATEMENT OF INCREASED UTILIZATION IMPLIES AT LEAST 70 BILLION A YEAR OF EXTRA PROGRAM COSTS THIS IS NOT INTENDED AS A PRECISE ESTIMATE BUT AS AN INDICATION OF THE MINIMUM AMOUNT BY WHICH THE ADMINISTRATION'S CURRENT ESTIMATES UNDERSTATE THE TRUE FINANCING COSTS THE ONLY WAY TO AVOID THESE INCREASED COSTS WOULD BE TO IMPOSE A SYSTEM OF CONTROLS AND RATIONING THAT DENIES PATIENTS THE CARE THAT THEY AND THEIR DOCTORS WANT PERHAPS THAT IS WHAT IS MEANT BY GLOBAL BUDGETS FOR PRIVATE CARE IF THAT IS THE ESSENCE OF THE CLINTON PLAN IT DESERVES TO BE THE FOCUS OF OUR NATIONAL DEBATE THE ADMINISTRATION'S ESTIMATES ALSO ESSENTIALLY IGNORE THE IMPACT OF THE PLAN ON EXISTING GOVERNMENT REVENUE CONSIDER FIRST HOW THE PAYROLL PREMIUM TAX WOULD SHRINK TAXABLE WAGES AND SALARIES AND THEREBY REDUCE ALL FORMS OF INCOME AND PAYROLL TAX REVENUE UNDER THE CLINTON PLAN EMPLOYERS WOULD PAY PREMIUMS OF 2240 A YEAR FOR EMPLOYEES IN TWOPARENT FAMILIES AND CORRESPONDING AMOUNTS FOR OTHER TYPES OF EMPLOYEES SUBJECT TO A MAXIMUM PAYMENT OF 79 OF THE FIRM'S TOTAL PAYROLL IT IS THIS LIMIT OF 79 OF PAYROLL THAT CONVERTS THE PAYROLL PREMIUM FROM A MANDATORY INSURANCE PREMIUM INTO A 79 PAYROLL TAX THAT GENERALLY DISCOURAGES WORK AND ENCOURAGES INDIVIDUALS TO TAKE COMPENSATION IN NONPAYROLL FORM IF A FIRM THAT IS SUBJECT TO THE 79 CAP ADDS A NEW EMPLOYEE WHO IS PAID 20000 THE EMPLOYER MUST PAY AN ADDITIONAL PAYROLL PREMIUM TAX OF 79 OR 1580 IF THE FIRM INCREASES THE PAY OF ANY EMPLOYEE BY 1000 IT MUST PAY AN ADDITIONAL PAYROLL PREMIUM TAX OF 79 IN OTHER WORDS THE PAYROLL PREMIUM IS A 79 ADDITIONAL TAX ON INCREMENTAL WAGES EXCEPT FOR THOSE FIRMS AT WHICH 79 OF TOTAL PAYROLL EXCEEDS THE TOTAL MANDATED PREMIUMS THE IMMEDIATE EFFECT OF IMPOSING THE PAYROLL PREMIUM TAX WOULD BE TO DISCOURAGE HIRING TO INCREASE LAYOFFS AND TO REDUCE PROFITS IN FIRMS THAT NOW PAY LESS THAN 79 OF PAYROLL FOR HEALTH INSURANCE THE REDUCTION IN PROFITS WOULD NOT BE PERMANENT BECAUSE CAPITAL WOULD MOVE TO OTHER USES WHERE IT CAN EARN A HIGHER RETURN AFTER A FEW YEARS THE REDUCED DEMAND FOR LABOR WOULD CAUSE WAGE RATES TO DECLINE BY THE 79 EXPERIENCE SHOWS THAT A TAX ON MARGINAL WAGE AND SALARY INCOME REDUCES WORKING HOURS ENCOURAGES THE SUBSTITUTION OF FRINGE BENEFITS FOR WAGES AND SHRINKS TAXABLE COMPENSATION IN OTHER WAYS CALCULATIONS WITH THE NATIONAL BUREAU OF ECONOMIC RESEARCH TAXSIM MODEL IMPLY THAT A NEW UNIVERSAL 79 PAYROLL TAX WOULD CAUSE CHANGES IN BEHAVIOR THAT REDUCE TOTAL 1997 WAGES BY ABOUT 115 BILLION AND CUT THE FEDERAL GOVERNMENT'S TAX REVENUE BY 49 BILLION 24 BILLION LESS IN PERSONAL INCOME TAX PAYMENTS 16 BILLION LESS IN EMPLOYEREMPLOYEE SOCIAL SECURITY TAX PAYMENTS AND 9 BILLION LESS IN PAYROLL PREMIUM PAYMENTS IF ONLY TWOTHIRDS OF EMPLOYEES WERE IN FIRMS SUBJECT TO THE 79 CAP THESE AMOUNTS WOULD BE REDUCED BY ONETHIRD THE CLINTON HEALTH PLAN WOULD REDUCE GOVERNMENT REVENUE IN OTHER WAYS AS WELL PROVIDING HEALTH INSURANCE TO EVERYONE WOULD ENCOURAGE MORE EARLY RETIREMENT LESS EMPLOYMENT AMONG SECOND EARNERS WHO NOW WORK TO OBTAIN INSURANCE AND MORE SHIFTS TO THE UNDERGROUND ECONOMY ALL OF THESE CHANGES WOULD REDUCE INCOME AND PAYROLL TAX REVENUE THE PLAN'S COMPLEX SYSTEM OF SUBSIDIES AND PREMIUM CAPS FOR SMALL FIRMS AND FOR FIRMS WITH LOW AVERAGE WAGES WOULD ALSO ENCOURAGE THE OUTSOURCING OF JOBS IN WAYS THAT REDUCE PAYROLL PREMIUM REVENUE THE COMBINATION OF ALL THESE CHANGES WOULD PROBABLY REDUCE TAX REVENUES BY AT LEAST 50 BILLION A YEAR ADDING TO THAT THE 70 BILLION OF EXTRA COSTS IMPLIED BY EXCESS MEDICAREMEDICAID SPENDING AND BY INCREASED UTILIZATION IMPLIES A TOTAL ANNUAL FINANCING SHORTFALL AT 1997 LEVELS OF OVER 120 BILLION CLOSING A 120 BILLION ANNUAL FINANCING GAP WOULD REQUIRE A MASSIVE INCREASE IN TAX RATES IN 1997 120 BILLION WOULD BE 18 OF CURRENTLY PROJECTED PERSONAL INCOME TAX REVENUE BUT AN ACROSSTHEBOARD 18 INCREASE IN ALL PERSONAL INCOME TAX RATES WOULDN'T RAISE AN EXTRA 120 BILLION BECAUSE HIGHER MARGINAL RATES CAUSE REDUCTIONS IN WORKING HOURS CHANGES IN THE FORM OF COMPENSATION TO NONTAXABLE FRINGE BENEFITS AND SHIFTS TO LESS ONEROUS BUT LOWER PAID WORK CALCULATIONS USING THE TAXSIM MODEL IMPLY THAT RAISING AN EXTRA 120 BILLION IN 1997 WOULD REQUIRE INCREASING MARGINAL TAX RATES BY AT LEAST 24 EVEN IF THOSE HIGHER TAX RATES ONLY REDUCED TAXABLE INCOME AND WAGES BY AS LITTLE AS 2 A TAXPAYER WHO IS NOW PAYING A 15 MARGINAL TAX RATE WOULD FACE A RATE OF 186 A TAXPAYER AT THE CURRENT TOP 396 PERSONAL RATE WOULD SEE THAT RISE TO 49 OR HIGHER THE AMERICAN PUBLIC NEEDS TO KNOW THE TRUE TOTAL COST OF THE PLAN UNLESS VOTERS WANT TO PAY INCREASED TAXES OF AT LEAST 120 BILLION A YEAR CONGRESS SHOULD BE WORKING ON ALTERNATIVE LOWERCOST WAYS OF DEALING WITH OUR HEALTH CARE PROBLEMS ECONOMIC ADVISERS IS A PROFESSOR OF ECONOMICS AT HARVARD 9309290001 930929 YOUR MONEY MATTERS BEWARE OF COVERAGE GAPS IN TODAY'S HEALTH PLANS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL PEOPLE TRYING TO FIGURE OUT HOW PRESIDENT CLINTON'S HEALTH PLAN STACKS UP AGAINST THEIR CURRENT EMPLOYERPROVIDED COVERAGE MAY WELL HAVE A FALSE SENSE OF SECURITY WHILE MANY COMPANYSPONSORED PLANS SEEM GENEROUS THEY OFTEN HAVE GAPS IN COVERAGE THAT CAN BE DANGEROUS IF A REAL MEDICAL CRISIS STRIKES TYPICALLY MOST PLANS HAVE CAPS ON TREATMENT WON'T COVER PREEXISTING CONDITIONS CAN LEGALLY CHANGE AT A MOMENT'S NOTICE TO REDUCE OR EXCLUDE COVERAGE AND CAN CUT OFF BENEFITS FOLLOWING A CATASTROPHIC ILLNESS OR INJURY IF YOU CAN'T RETURN TO WORK THE PRESIDENT'S PROPOSED HEALTH PLAN WOULD PLUG SUCH GAPS BUT UNTIL IT OR A SIMILAR HEALTHCARE OVERHAUL IS ENACTED THERE'S LITTLE PEOPLE CAN DO EXCEPT SCRUTINIZE THEIR BENEFIT BOOKLETS AND POLICIES TO MAKE SURE THEY KNOW EXACTLY WHAT IS COVERED AND WHAT ISN'T MICHEL DRAKE OF DIXON CALIF DIDN'T LOOK AT THE BENEFITS BOOKLET FOR HER HUSBAND'S HEALTH PLAN UNTIL SHE WAS TOLD THAT THEIR EIGHTYEAROLD SON HAD LEUKEMIA AND WOULD DIE WITHOUT IMMEDIATE COSTLY TREATMENT WHEN I GOT OUT THE INSURANCE BOOK I WAS JUST PANICKED SHE SAYS WHILE HER HUSBAND'S PLAN WITH PAYLESS DRUG STORES HAS AN ANNUAL COVERAGE CAP OF 250000 THIS IS AVAILABLE ONLY FOR EMPLOYEES WHO HAVE WORKED FOR THE COMPANY FOR THREE YEARS HER HUSBAND JOHN WHO HAD BEEN AN EMPLOYEE FOR JUST OVER TWO AND A HALF YEARS FACED A COVERAGE CAP OF 25000 AN AMOUNT REACHED WITHIN THE FIRST WEEK OF THEIR SON'S TREATMENT AFTER THAT THE BOY WENT ON MEDICAL THE MEDICAID PROGRAM FOR LOWINCOME FAMILIES IN CALIFORNIA THE DRAKES ALSO LEARNED THAT LIKE MOST HEALTH PLANS PAYLESS DRUG'S SELFINSURED HEALTH PLAN DOESN'T PAY FOR BONE MARROW TRANSPLANTS WHICH DOCTORS SAY IS THEIR SON'S BEST HOPE FOR SURVIVAL SHE SAYS SHE ALSO WAS TOLD THAT THE PLAN WOULDN'T PAY FOR AN EXPENSIVE DRUG ZOFRAN THAT THE BOY'S DOCTOR SAID WOULD HAVE HELPED HIM WEATHER CHEMOTHERAPY TREATMENTS WITH LESS NAUSEA AND VOMITING A PAYLESS SPOKESWOMAN WOULDN'T COMMENT ON THE DRAKES' SITUATION BUT SHE SAYS THE PLAN IS DESIGNED TO PROVIDE THE MAXIMUM BENEFITS FOR THE MAXIMUM NUMBER OF EMPLOYEES LIKE MOST PLANS IT HAS MAXIMUMS ON WHAT IT WILL PAY WE FIND THAT BY INCREASING THESE MAXIMUMS AFTER THREE YEARS OF EMPLOYMENT THEREBY INCREASING BENEFIT LEVELS WITH SERVICE WE ARE CONSISTENT WITH OUR GOAL OF PROVIDING THE MAXIMUM BENEFIT FOR THE MAXIMUM NUMBER OF PEOPLE SHE SAYS THE PLAN WOULD PAY FOR ANTINAUSEA DRUG ZOFRAN AND WON'T COMMENT ON WHETHER THE DRAKES WERE GIVEN INCORRECT INFORMATION ANOTHER CRITICAL GAP IN HEALTH PLANS IS COVERAGE FOLLOWING A CATASTROPHIC INJURY OR ILLNESS WHILE A PLAN MAY COVER CARE FOLLOWING A CAR WRECK OR CANCER SURGERY IT WON'T PAY BILLS INDEFINITELY MOST WORKPLACE MEDICAL PLANS TERMINATE COVERAGE IF AN EMPLOYEE CAN NO LONGER WORK JUDITH ANGRAN A SPECIAL EDUCATION TEACHER IN IOWA HAD CATASTROPHIC COVERAGE UNDER HER SCHOOL DISTRICT'S HEALTH PLAN WHICH WAS INSURED BY BLUE CROSS/BLUE SHIELD IOWA AFTER AN AUTO ACCIDENT IN 1989 SHE LAY IN A COMA FOR A YEAR WHEN SHE REGAINED CONSCIOUSNESS IT WAS SIX MONTHS BEFORE ANYONE NOTICED SHE WAS AWAKE SINCE SHE WAS DEAF MUTE AND PARALYZED FROM THE EYES DOWN HER FAMILY AT THAT POINT SOUGHT REHABILITATION TREATMENT PROVIDED UNDER THE TERMS OF THE PLAN BUT MRS ANGRAN'S PLAN TERMINATED HER COVERAGE BECAUSE SHE WAS UNABLE TO RETURN TO WORK SHE THEN WENT ON MEDICAID WHICH DOESN'T PROVIDE THE SAME LEVEL OF REHABILITATION COVERAGE THAT HER HEALTH PLAN COVERED SHE IS NOW CARED FOR AT HOME BY HER HUSBAND AND PARENTS MRS ANGRAN'S SITUATION ILLUSTRATES ANOTHER PERIL EVEN IF YOUR PLAN SAYS IT PROVIDES UNLIMITED MEDICAL COVERAGE THE PLAN CAN BE CHANGED AT ANY TIME WHEN MRS ANGRAN WAS INJURED SHE HAD UNLIMITED MEDICAL BENEFITS UNDER IOWA'S BEST WHICH PROVIDED TEACHERS WITH CADILLAC COVERAGE IT WASN'T UNTIL AFTER HER INJURY THAT THE PLAN ADDED CLAUSES THAT TERMINATE COVERAGE IF THE EMPLOYEE CAN'T WORK H RICHARD SMITH A LAWYER FOR BLUE CROSS/BLUE SHIELD IOWA SAYS THE DECISION WAS MADE BY THE SCHOOL DISTRICT FEW EMPLOYERS HE SAYS ARE ABLE OR WILLING TO PAY THE PREMIUMS TO PROVIDE LIFETIME COVERAGE IN THE EVENT OF CATASTROPHIC ILLNESS OR INJURY MR AND MRS ANGRAN SUED THE HEALTH PLAN SEEKING REINSTATEMENT OF BENEFITS ATTORNEYS FOR BOTH PARTIES SAY THEY HAVE AGREED TO SETTLE THE CASE IN A MANNER THAT SATISFIES BOTH SIDES ANOTHER CRITICAL GAP IN HEALTH COVERAGE FOR THE ALREADY INSURED ARE PREEXISTING CONDITIONS PLANS TYPICALLY EXCLUDE TREATMENT FOR BACK PROBLEMS DIABETES CANCER ARTHRITIS OR OTHER AILMENTS PEOPLE ALREADY SUFFER FROM AT THE TIME THEY JOIN A HEALTH PLAN MANY PLANS EXCLUDE PREEXISTING CONDITIONS FOR ONE TO TWO YEARS WHEN PEOPLE SIGN UP FOR COVERAGE THEY TEND TO ASSUME THAT THEY ARE COMPLETELY COVERED UNLESS THEY HEAR OTHERWISE FROM THE INSURER BUT THEY ARE OFTEN MISTAKEN INSURERS OFTEN DON'T SEEK EVIDENCE OF PREEXISTING CONDITIONS UNTIL AFTER PEOPLE FILE LARGE CLAIMS FOR HEART SURGERY CANCER OR OTHER PROBLEMS IF THEY FIND SUCH EVIDENCE THE PLAN WILL REFUSE TO PAY SOME OR ALL OF THE CLAIMS AND OFTEN ENDEAVORS TO RESCIND COVERAGE AS WELL AS A RESULT PEOPLE CAN FIND THEMSELVES FIGHTING TO GET THE BILLS PAID FOR CONDITIONS FOR WHICH THEY HAVE ALREADY RECEIVED TREATMENT LAST YEAR FLORIE AYALON A CALABASAS CALIF MOTHER OF THREE WAS DIAGNOSED WITH MYASTHENIA GRAVIS A SERIOUS NEUROMUSCULAR DISEASE INITIALLY THE HEALTH PLAN OFFERED BY HER HUSBAND'S EMPLOYER APPROVED HER TREATMENT AND PAID SOME OF THE CLAIMS BUT AFTER MRS AYALON WAS HOSPITALIZED FOR SURGERY AND A COLLAPSED LUNG THE PLAN REFUSED TO PAY THE NEARLY 100000 IN HOSPITAL BILLS THE REASON AFTER INVESTIGATING HEALTHPLAN ADMINISTRATORS SAID MRS AYALON HADN'T DISCLOSED ON THE APPLICATION FOR COVERAGE THAT SHE VISITED AN OPTHOMALOGIST A YEAR EARLIER WHERE SHE COMPLAINED OF DOUBLE VISIONA SYMPTOM THEY SAID OF HER DISEASE PLAN ADMINISTRATORS SAID THAT FAILING TO MENTION THE VISIT TO THE EYE DOCTOR WAS EVIDENCE OF MISREPRESENTATION SO HEY RESCINDED HER COVERAGE MR AYALON SAYS HE FILLED OUT THE HEALTHPLAN APPLICATION DURING A BREAK AT WORK AND DIDN'T GIVE IT A LOT OF ATTENTION I MARKED THE X'S IN THE RIGHT PLACES I DIDN'T CALL MY WIFE TO ASK HER IF SHE SUFFERED FROM ANYTHING SPECIAL AT THE TIME I DIDN'T KNOW THAT SHE'D COMPLAINED ABOUT DOUBLE VISION TO THE EYE DOCTOR HE SAYS THE AYALONS HAVE FILED A SUIT IN FEDERAL COURT IN LOS ANGELES SEEKING PAYMENT OF BENEFITS AND RESTORATION OF COVERAGE A LAWYER FOR MR AYALON'S EMPLOYER ATLANTA STAFF INC SAYS THE SUIT IS WITHOUT MERIT AND PREFERS NOT TO COMMENT FURTHER SINCE THE CASE IS IN LITIGATION BUT RICHARD SMITH DIRECTOR OF HEALTH CARE PLANS AT THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS A WASHINGTON TRADE GROUP SAYS EMPLOYERS HAVE TO EXCLUDE PREEXISTING CONDITIONS IF THEY ARE GOING TO BE ABLE TO AFFORD BENEFITS FOR EVERYONE AS LONG AS THERE ARE EXCLUSION OF PREEXISTING CONDITIONS THERE ARE GOING TO BE DISPUTES IF WE MOVE TO MANDATED COVERAGE WE'D BE ABLE TO REMOVE PREEXISTING CONDITIONS AND THE LITIGATION THAT GOES ALONG WITH THEM EVEN PEOPLE WITH HEALTH INSURANCE MAY FACE DANGEROUS GAPS IN THEIR COVERAGE WHILE MOST LARGE EMPLOYERS TYPICALLY CAP LIFETIME BENEFITS AT 1 MILLION OTHERS SET CAPS FAR LOWER ANNUAL LIMITS MAY EASILY BE EXCEEDED IN THE CASE OF CATASTROPHIC ILLNESS OR INJURY PREEXISTING CONDITIONS ARE COMMONLY EXCLUDED FROM COVERAGE MANY HEALTH PLANS CAN TERMINATE COVERAGE IF AN EMPLOYEE CAN'T RETURN TO WORK LEAVING SOMEONE SIDELINED BY CATASTROPHIC ILLNESS OR INJURY UNINSURED EMPLOYERS CAN DROP THEIR HEALTH PLANS REDUCE THE BENEFITS OFFERED AND LOWER COVERAGE CAPS WITH FEW IMPEDIMENTS BEYOND THOSE IMPOSED IN COLLECTIVE BARGAINING AGREEMENTS A PLAN MAY NOT PAY FOR DRUGS OR TREATMENT IT CONSIDERS EXPERIMENTAL 9309290153 930830 MANAGER'S JOURNAL MAIN STREET VS WALMART BY JOHN L GANN JR WALMART THE NATION'S LARGEST RETAILER AND ONE OF THE GREAT SUCCESS STORIES OF THE 1980S HAS BECOME THE WHIPPING BOY OF A COALITION OF POLITICIANS HISTORIC PRESERVATIONISTS AND SMALL SHOPKEEPERS IN COMMUNITIES AROUND THE COUNTRY WHILE I CAN'T JUDGE THE VERACITY OF PREDATORYPRICING CHARGES BROUGHT AGAINST THE COMPANY BY ARKANSAS RETAILERS MOST OF THE WALMARTBASHING WE SEE REFLECTS A LACK OF VISION ON THE PART OF HOMETOWN RETAILERS THE COMPANY THE STORY GOES OBLITERATES SMALLCITY DOWNTOWNS AND OTHER OLDER RETAIL AREAS THEREBY CAUSING BUSINESS FAILURES JOB LOSSES URBAN BLIGHT AND EVEN BY ONE ACCOUNT THE DECLINE OF NEIGHBORLINESS HOW ONE MIGHT ASK HAS ONE COMPANY MANAGED TO BRING ABOUT SUCH GREAT EVIL APPARENTLY BY MAKING LARGE INVESTMENTS IN SMALL TOWNS THAT FOR YEARS HAD SEEN LITTLE OR NO OTHER PRIVATE INVESTMENT BY PUTTING UP BIG STORES WITH GREATER SELECTIONS THAN LOCAL MERCHANTS OFFERED BY GOING INTO RURAL AREAS THAT OTHER BIG CHAINS TURNED UP THEIR NOSES AT BY OFFERING LOWER PRICES AND LOTS OF FREE PARKING AND BY EVEN STATIONING AN EMPLOYEE AT THE DOOR TO GREET SHOPPERS THIS IS BAD BUT FACTS ARE UNIMPORTANT WHEN A SCAPEGOAT IS NEEDED AND THE TRUTH IS THAT OLDER DOWNTOWNS IN BOTH RURAL COMMUNITIES AND METROPOLITAN SUBURBS WENT INTO DECLINE LONG BEFORE WALMART CAME ON THE SCENE OUR FIRM HAS WORKED IN A NUMBER OF SMALLCITY DOWNTOWNS WHAT WE FIND IN MANY ARE UNCOMPETITIVE RETAILERS RESTING ON THEIR OARS INSTEAD OF HUSTLING TO SERVE THEIR CUSTOMERS BETTER AND WIN NEW ONES WE FIND RETAIL DISTRICTS WITH SCARCE PARKING DETERIORATED STORES NO EVENING OR SUNDAY BUSINESS HOURS POOR MARKETING AND SOME QUESTIONABLE TENANTS SUCH BUSINESSES AND RETAIL AREAS SHOULD BE LOSING SALES WALMART OR NO WALMART BUT INSTEAD OF GETTING ON THE BALL FINDING A NICHE IN WHICH THEY CAN COMPETE AND MAKING INVESTMENTS IN PARKING OR PROMOTION IT'S BECOME EASIER IN SOME PLACES TO JUST CLAIM VICTIM STATUS AND FIGHT POLITICALLY TO KEEP COMPETITORS LIKE WALMART AWAY SIMILAR MOVEMENTS HAVE RECENTLY ARISEN TO KEEP HOME DEPOT FROM REDEVELOPING SITES IN PARTS OF NEW YORK CITY YET SOME WALMART OPENINGS HAVE PROMPTED LOCAL MERCHANTS TO IMPROVE THEIR MANAGEMENT RESULTING IN BENEFITS BOTH TO THE BUSINESSES AND TO SHOPPERS BENEFITS THAT MIGHT NEVER HAVE BEEN REALIZED WITHOUT COMPETITION FROM THE MAN FROM BENTONVILLE ARK ONE CURRENTLY FASHIONABLE THEORY ON HOW TO RESCUE OLDER DOWNTOWNS THREATENED BY WALMART OR OTHER SCOURGES IS PROMULGATED BY THE NATIONAL MAIN STREET CENTER AN ARM OF THE NATIONAL TRUST FOR HISTORIC PRESERVATION ITS STATE AND LOCAL MAIN STREET PROGRAMS HAVE MULTIPLIED ACROSS THE COUNTRY LIKE WELL WALMARTS TO BRING BACK SHOPPERS AND FILL VACANT STOREFRONTS THE PRESERVATIONISTS SAY TURN YOUR SHOPPING DISTRICT INTO A MUSEUM OF 19THCENTURY ARCHITECTURE RESTORE THE VICTORIAN FACADES REPAINT WITH HISTORICALLY CORRECT COLORS ADD COSTLY STREET FURNITURE AND GENERALLY MAKE THINGS QUAINT THEN THE ANTIQUES STORES FERN BARS INTERIOR DESIGN STUDIOS AND BOUTIQUES WILL OPEN UP THE THEORY GOES FASHIONCONSCIOUS ARCHITECTURALLY AWARE YUPPIES WITH CASH SPILLING OUT OF THEIR DESIGNER POCKETS WILL FLOCK BACK AND ALL WILL AGAIN BE WELL THE FORMULA HAS ACTUALLY WORKED IN A FEW PLACES TYPICALLY IN UPPERINCOME ENCLAVES TOURIST TOWNS AND OTHER MILIEUS WHERE QUAINTNESS COUNTS MORE WITH SHOPPERS THAN MERCHANDISE SELECTION OR SAVING A BUCK IN MANY OTHER PLACES THOUGH IT HAS BEEN AN EXPENSIVE DISASTER I TELL CLIENTS THAT IF THEY REALLY WANT TO REJUVENATE AN OLDER BUSINESS AREA ECONOMICALLY THEY SHOULD STUDY SUCCESS IF YOU'RE LOSING SALES TO SHOPPING CENTERS WHAT ARE THEY DOING RIGHT THAT YOU'RE NOT DITTO WITH WALMART OR HOME DEPOT IN OTHER WORDS COMPETE IF RETAILERS OUTSIDE DOWNTOWN ARE MAKING MONEY WITHOUT HISTORICAL CORRECTNESS WHAT DOES THAT TELL YOU AND WHAT PERCENTAGE OF THE NATION'S RETAIL SALES DO MUSEUMS ACCOUNT FOR ANYWAY MOST ANTIWALMART ACTIVISTS ARE LITTLE MORE THAN LOCALSCALE PROTECTIONISTS WHAT IS REALLY HURTING OLDER RETAIL AREAS IS NOT WALMART BUT COSTLY DESIGN PANACEAS PEDDLED BY SOME ARCHITECTS PRESERVATIONISTS AND PLANNERS WITH THEIR OWN INTERESTS AND NOT THOSE OF RETAILERS LET ALONE SHOPPERS IN MIND AND WHAT COULD BE THE SALVATION OF THESE AREAS IS A GOOD HARD LOOK AT WHAT MAKES WALMART AND THE SHOPPING CENTERS WORK OF COURSE RETAILERS LIKE THOSE IN ARKANSAS ARE FREE TO APPLY LOCAL PREDATORYPRICING CHARGES AGAINST WALMART AND OTHER BIG CHAINS IF THEY FEEL THAT'S THEIR ONLY STRATEGY TO COMPETE BUT BARRING UNFAIR COMPETITION THERE ARE STILL WAYS TO WIN OUT OVER THE BIG FIRMS WITHOUT GOING TO COURT OUR FIRM HAS TRADED FOR YEARS WITH A SMALL INDEPENDENT OFFICESUPPLY STORE IN AN OLD SUBURBAN DOWNTOWN OFFICE MAX OPENED SUPERSTORES NEARBY OUR LOCAL SUPPLY STORE LOWERED PRICES AND STARTED BENDING OVER BACKWARD TO GIVE PERSONAL SERVICE WE CAN STILL GET THINGS THERE THAT OFFICE MAX DOESN'T CARRY GUESS WHO STILL GETS OUR BUSINESS IN THE CARTER ADMINISTRATION THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT CAME UP WITH A STOP THE MALL PROGRAM FOR DOWNTOWNS THE PROGRAM IS GONE AS IS THE CARTER ADMINISTRATION THE MALLS ARE MORE NUMEROUS THAN EVER SO MUCH FOR THE EFFECTIVENESS OF PROTECTIONISM SAM WALTON IS ALSO GONE NO ONE EVER ACCUSED HIM OF BEING A DOWNTOWN REVITALIZATION EXPERT OR MAIN STREET MANAGER BUT OLDER BUSINESS DISTRICTS SHOULD STUDY AND TRY TO EMULATE THE BEST PARTS OF HIS APPROACH TO SERVING THE PEOPLE WHO USED TO BE THEIR CUSTOMERS IF THEY DO SAM COULD WIND UP AS THE BEST FRIEND THEY EVER HAD MR GANN IS PRESIDENT OF A GLEN ELLYN ILLBASED DEVELOPMENT CONSULTING FIRM THAT ASSISTS OLDER BUSINESS AREAS HE HAS NO BUSINESS OR PERSONAL CONNECTION WITH WALMART OR ANY OTHER LARGE RETAIL CHAIN SEE RELATED LETTERS LETTERS TO THE EDITOR MAIN STREET BROUGHT US BACK TO LIFE WSJ SEPT 29 1993 9308300150 YY93 MM09 9309280175 930928 DIVIDEND NEWS UNOCAL CORP UNOCAL CORP LOS ANGELES BOOSTED ITS QUARTERLY 14 TO TO 20 CENTS A SHARE FROM 175 CENTS THE OIL COMPANY'S FIRST INCREASE SINCE NOVEMBER 1989 THE INCREASED DIVIDEND IS PAYABLE NOV 10 TO STOCK OF RECORD OCT 12 9309280174 930928 AFFYMAX UNIT'S SHARE PLACEMENT PALO ALTO CALIF AFFYMAX NV SAID ITS AFFYMETRIX UNIT RAISED 166 MILLION THROUGH THE PRIVATE PLACEMENT OF PREFERRED SHARES THE MONEY WILL BE USED TO DEVELOP AFFYMETRIX TECHNOLOGY FOR THE BIOMEDICAL RESEARCH AND GENETIC ANALYSIS MARKETS AFFYMAX SAID 9309280173 930928 WESTERN GAS RESOURCES INC DENVER WESTERN GAS RESOURCES INC SAID IT COMPLETED ITS PURCHASE OF CERTAIN OIL AND GAS PROPERTIES IN THE GULF COAST AREA FOR 128 MILLION FROM NERCO INC A UNIT OF BRITISHBASED RTZ CORP 9309280172 930928 US ANNOUNCES SOME GUIDELINES FOR DERIVATIVES BANKS WILL BE REQUIRED TO ADOPT RISK POLICY PROMISING NO SURPRISES BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL BANKING REGULATORS CONCERNED THAT SOME NEWCOMERS TO THE 7 TRILLION DERIVATIVES MARKET MAY NOT SUFFICIENTLY UNDERSTAND THE RISK THEY FACE ANNOUNCED REGULATORY GUIDELINES FOR BANKS THAT DEAL IN THESE COMPLEX FINANCIAL INSTRUMENTS IN A SPEECH TO THE INSTITUTE OF INTERNATIONAL BANKERS COMPTROLLER OF THE CURRENCY EUGENE LUDWIG SAID HIS AGENCY WHICH REGULATES 3500 NATIONALLY CHARTERED BANKS WILL REQUIRE BANKS DEALING IN DERIVATIVES TO ADOPT A NO SURPRISES' RISKMANAGEMENT POLICY MADE CONCRETE IN SYSTEMS AND CONTROLS DERIVATIVES ARE TRADING INSTRUMENTS THAT CAN BE USED FOR HEDGING OR MAKING MARKET PLAYS BANKS BROKERS AND THEIR CUSTOMERS USE DERIVATIVES TO DEFRAY THE RISK OF CHANGES IN INTEREST RATES STOCK PRICES FOREIGNEXCHANGE RATES AND COMMODITIES PRICES THE MARKET IS DOMINATED BY A FEW US AND FOREIGN BANKING COMPANIES INCLUDING JP MORGAN & CO BANKERS TRUST NEW YORK CORP AND BANQUE PARIBAS BUT THE MARKET ALSO INCLUDES MAJOR SECURITIES FIRMS SUCH AS MERRILL LYNCH & CO AND A FEW INSURANCE COMPANIES INCLUDING AMERICAN INTERNATIONAL GROUP MR LUDWIG ALSO CALLED FOR THE ESTABLISHMENT OF AN INTERAGENCY TASK FORCE ON DERIVATIVES TO HELP MONITOR THE EVOLVING MARKET AND ISSUE STANDARDS WHERE NECESSARY DOUGLAS HARRIS WHO RECENTLY JOINED THE COMPTROLLER'S OFFICE FROM JP MORGAN TO ADVISE MR LUDWIG ON DERIVATIVES SAID THE TASK FORCE COULD ISSUE GUIDANCE ON RISKMANAGEMENT NORMS ACCOUNTING STANDARDS AND CAPITAL NEEDS FOR PARTICIPANTS IN THE DERIVATIVES BUSINESS THE TASK WILL INCLUDE FEDERAL BANKING AGENCIES THE SECURITIES AND EXCHANGE COMMISSION AND THE COMMODITY FUTURES TRADING COMMISSION MR HARRIS SAID HE DOESN'T YET KNOW IF THEY WILL ASK STATE INSURANCE REGULATORS TO JOIN THE GROUP UNLIKE BANKS AND SECURITIES FIRMS INSURANCE COMPANIES ARE REGULATED LARGELY AT THE STATE LEVEL REGULATORS AND MEMBERS OF CONGRESS HAVE EXPRESSED CONCERN ABOUT THE BOOMING GROWTH IN DERIVATIVES IN PART BECAUSE THESE TRADING INSTRUMENTS AREN'T ALWAYS EASY TO UNDERSTAND BUT MR LUDWIG'S STATEMENT IS THE MOST EXPLICIT INDICATION OF REGULATORY INTENT SO FAR IF BANKS ARE GOING TO BE IN THE DERIVATIVES BUSINESS WE WILL AT SOME POINT SOONER RATHER THAN LATER EXPECT THEM TO BE ABLE TO ANALYZE NOT ONLY THE SEPARATE TRADITIONAL TYPES OF RISKCREDIT MARKET LIQUIDITY OPERATIONAL AND SO ON BUT ALSO THE RISK THAT ARISES FROM THE POSSIBILITY OF UNFORESEEN CONVERGENCES OF THESE TRADITIONAL TYPES OF RISKS MR LUDWIG SAID BANKS WITH EXPERIENCE IN DERIVATIVES ALREADY HAVE SYSTEMS IN PLACE TO PERFORM SUCH ANALYSIS HE SAID THE NEWER PLAYERS ARE WHERE OUR DEEPEST CONCERNS FOCUS OFFICIALS IN MR LUDWIG'S OFFICE DECLINED TO NAME THE BANKS THAT CONCERN THEM MR LUDWIG SAID THAT DERIVATIVES WHILE DESIGNED TO LIMIT RISK CAN SOMETIMES MAKE IT HARDER TO UNDERSTAND WHAT NEW RISK COMBINATIONS ARE FORMED AS A RESULT BANKS NEED TO PUT TOGETHER SYSTEMS THAT WILL ALLOW THEM TO UNCOVER THOSE NEW RISK COMBINATIONS IN OTHER WORDS TO EXPECT THE UNEXPECTED SEPARATELY A NUMBER OF COMMERCIAL AND INVESTMENT BANKERS ATTENDED A CONFERENCE ON DERIVATIVES YESTERDAY AT THE FEDERAL RESERVE BOARD ONE BANKER AT THAT CONFERENCE EXPRESSED CONFIDENCE THAT THE RISKS OF DERIVATIVES ARE NO DIFFERENT FROM AND POSSIBLY LOWER THAN THE RISKS OF ORDINARY COMMERCIAL LENDING INDEED MANY BANKERS BELIEVE THAT THEIR EXPOSURE TO LOSS IS FAR SMALLER FROM DERIVATIVES THAN FROM LOANS PARTICIPANTS IN THE FED MEETING DISCUSSED A RECENT SET OF RECOMMENDATIONS BY THE GROUP OF 30 AN INDUSTRY GROUP HEADED BY FORMER FED CHAIRMAN PAUL VOLCKER THE RECOMMENDATIONS WHICH HAVE BEEN HIGHLY PRAISED BY REGULATORS PROPOSE 20 GUIDELINES FOR BANKS AND OTHER DEALERS IN DERIVATIVES TO FOLLOW IN ORDER TO LIMIT RISK DESPITE REGULATORY CONCERN ABOUT THE NOVELTY AND SIZE OF THE DERIVATIVES MARKET FED CHAIRMAN ALAN GREENSPAN SAID LAST MONTH THAT IF PROPERLY MANAGED DERIVATIVES SHOULD ALLOW BANKS TO BETTER MANAGE RISK AND SO SHOULD HELP TO INSULATE THE PAYMENTS SYSTEM FROM FINANCIAL AND REAL SHOCKS 9309280171 930928 NORTHSTAR HEALTH PLACEMENT PITTSBURGH NORTHSTAR HEALTH SERVICES INC SAID IT COMPLETED A PRIVATE PLACEMENT OF 400000 COMMON SHARES AT 550 EACH AND WILL USE THE PROCEEDS FOR ACQUISITIONS THE COMPANY WHICH PROVIDES PHYSICAL OCCUPATIONAL AND SPEECH THERAPY TO HEALTHCARE INSTITUTIONS DECLINED TO REVEAL SPECIFICS BUT SAID IT WILL ANNOUNCE SEVERAL ACQUISITIONS IN THE FOURTH QUARTER 9309280170 930928 ALPHAREL COMPLETES ACQUISITION CAMARILLO CALIF ALPHAREL INC COMPLETED ITS ACQUISITION OF OPTIGRAPHICS CORP IN A CASH AND STOCK DEAL VALUED AT SLIGHTLY LESS THAN 107 MILLION ALPHAREL HAS SAID OPTIGRAPHICS BASED IN SAN DIEGO HAS REVENUE 25 GREATER THAN THAT OF ALPHAREL WHICH HAD REVENUE OF 62 MILLION LAST YEAR THE MERGED COMPANIES WILL CONTINUE TO SUPPLY AND SUPPORT ALPHAREL AND OPTIGRAPHICS SOFTWARE AND HARDWARE COMPUTER PRODUCTS 9309280169 930928 INTERNATIONAL METALL MINING WILL BUY STOCK TORONTO METALL MINING CORP SAID IT AGREED IN PRINCIPLE TO PURCHASE 75 OF THE COMMON SHARES AND 87 OF THE PREFERRED SHARES OF OK TEDI MINING LTD FROM DEGUSSA AG OF GERMANY FOR US35 MILLION OK TEDI IS BASED IN PAPUA NEW GUINEA WHERE IT OWNS A COPPER AND GOLD MINE METALL A BASEMETALS PRODUCER SAID THE PURCHASE WILL DOUBLE ITS STAKE IN OK TEDI 9309280168 930928 PENN TRAFFIC ACQUIRES INSALACO SYRACUSE NY PENN TRAFFIC CO SAID IT COMPLETED ITS ACQUISITION OF INSALACO MARKETS INC A PITTSTON PA SUPERMARKET OPERATOR PENN TRAFFIC WHICH OPERATES 230 GROCERY STORES PAID 41 MILLION AND ASSUMED 4 MILLION IN DEBT AND INVENTORIES IN THE TRANSACTION INSALACO HAS 12 STORES AND 155 MILLION IN ANNUAL SALES PENN TRAFFIC HAD 279 BILLION IN SALES IN THE YEAR ENDED JAN 30 9309280167 930928 ECONOMY BUSINESS GROWS MORE NERVOUS ABOUT ECONOMY THREE SURVEYS SHOW DROP IN CONFIDENCE AND PLANS FOR CAPITAL SPENDING BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE EXECUTIVES ARE GROWING MORE NERVOUS ABOUT THE ECONOMY AND LESS WILLING TO MAKE CAPITAL EXPENDITURES NEW SURVEYS SUGGEST WORN DOWN BY UNRELENTING PRICING PRESSURES AND DIFFICULTIES IN FINDING NEW BUSINESS THE EXECUTIVES RESPONDING THIS MONTH TO SURVEYS BY THE CONFERENCE BOARD AND CAHNERS ECONOMICS REGISTERED A MORE DOUR VIEW OF ECONOMIC EXPECTATIONS THAN PREVIOUSLY THE TWO SURVEYS AS WELL AS A THIRD ONE BY MANAGEMENT CONSULTANT AT KEARNEY INC ALSO SHOWED THAT COMPANIES PLANNED TO SLOW THEIR INCREASES IN CAPITAL EXPENDITURES OVER THE COMING MONTHS SUCH SPENDING LARGELY ON PRODUCTIVITYENHANCING EQUIPMENT HAS BEEN ONE OF THE FEW BRIGHT SPOTS IN THE OTHERWISE LACKLUSTER ECONOMY THIS YEAR ONLY 29 OF THE 350 CONFERENCE BOARD CHIEF EXECUTIVE RESPONDENTS DOWN FROM 50 AT THE END OF THE SECOND QUARTER EXPECT A PICKUP IN THE ECONOMY SIX MONTHS FROM NOW OVERALL THE BOARD'S MEASURE OF BUSINESS CONFIDENCE FELL SEVEN POINTS TO 50 AN EVEN BALANCE OF POSITIVE AND NEGATIVE RESPONSES AND THE LOWEST LEVEL IN 2 1/2 YEARS MANUFACTURING EXECUTIVES HAVE GROWN MARKEDLY LESS CONFIDENT AS HAVE THOSE IN UTILITIES AND BUSINESS SERVICES THE ASSOCIATION OF BUSINESS EXECUTIVES SAID IN A REVIEW OF THE QUARTERLY SURVEY IT'S A TOUGH ECONOMY WE DON'T SEE ANY EVIDENCE YET OF A PICKUP SAYS GEORGE SCHUEPPERT CHIEF FINANCIAL OFFICER OF CBI INDUSTRIES INC AN OAK BROOK ILL PRODUCER PROCESSOR AND BUILDER OF STORAGE VESSELS FOR INDUSTRIAL LIQUIDS AND GASES THE CAHNERS SURVEY OF 400 EXECUTIVES PRIMARILY IN THE MANUFACTURING INDUSTRY WAS LESS PESSIMISTIC THAN THE CONFERENCE BOARD SURVEY BUT STILL SUGGESTED THAT WE'RE AT A WAITANDSEE PLATEAU SAYS DARYL DELANO SENIOR ECONOMIST OF THE NEWTON MASS CONSULTING FIRM A YEAR AGO BUSINESS EXECUTIVES WERE MORE OPTIMISTIC HE ADDED ON CAPITAL SPENDING THE CONFERENCE BOARD FOUND 30 OF RESPONDENTS WERE REVISING THEIR CURRENT PLANS DOWNWARD WHEREAS A YEAR AGO THE LAST TIME A SIMILAR QUESTION WAS ASKED BY THE BOARD ONLY 22 WERE CUTTING BACK ON BUDGETED SPENDING THE KEARNEY SURVEY SHOWED COMPANIES REDUCING THEIR PLANNED INCREASES IN CAPITAL SPENDING IN THE FOURTH QUARTER TO 2 FROM A YEAR EARLIER DOWN FROM AN 117 INCREASE IN THE THIRD QUARTER I WAS SURPRISED SAID PATRICK BYRNE A MANAGING DIRECTOR OF THE CHICAGO FIRM IT APPEARS THEY ARE PUTTING OFF LONGTERM FIXES BECAUSE OF UNCERTAINTIES AROUND THE ECONOMY IN A SEPARATE QUESTION THE EXECUTIVES PLACED THE ECONOMY AND ABILITY TO REDUCE COSTS AS THEIR KEY CONCERNS ABOUT NEXT YEAR'S FINANCIAL PERFORMANCE MANY COMPANIES ARE FRUSTRATED BECAUSE THEY HAVE UNDERTAKEN MAJOR OVERHAULS OF THEIR OPERATIONS WITHOUT YET SEEING COMMENSURATE RESULTS FOR INSTANCE ONEIDA LTD THE LAST US MAKER OF KNIVES FORKS AND OTHER TABLEWARE HAS CUT COSTS AND STREAMLINED ITS DISTRIBUTION PROCESS TO KEEP BUSINESS FROM FALLING TO FOREIGN COMPETITORS BUT WHILE THE UPSTATE NEW YORK COMPANY EXPECTS ITS SECONDHALF PROFIT TO GROW ABOUT 20 FROM LAST YEAR ITS SALES ARE SEEN AS RELATIVELY FLAT IF OUR SALES EVER IMPROVE OUR PROFITS WILL REALLY LOOK GOOD SAYS THOMAS FETZNER ONEIDA'S CONTROLLER MORE AND MORE COMPANIES ARE IN THE SAME BOAT THE KEARNEY SURVEY OF CHIEF FINANCIAL OFFICERS FROM 82 LARGE AND MIDSIZE COMPANIES SHOWS THEY EXPECT ON AVERAGE FOURTHQUARTER OPERATING PROFITS TO GROW 131 FROM LAST YEAR WHILE SALES PUSH AHEAD ONLY 43 THE THIRDQUARTER NUMBERS THEY ARE ABOUT TO REPORT WILL SHOW A SIMILAR PATTERN WITH PROFITS UP 104 FROM A YEAR EARLIER THE CFOS TOLD THE FIRM IT'S TOUGH TO GROW BOTH THE TOP AND BOTTOM LINES SAYS W JOSEPH MANIFOLD CFO OF DELAFIELD CO REFERRING TO SALES AND EARNINGS AS THEY APPEAR ON AN INCOME STATEMENT THOUGH SOLIDLY PROFITABLE THE MOUNT PLEASANT MICH MAKER OF COMMERCIAL FOODSERVICE EQUIPMENT HAS BEEN MET BY AGGRESSIVE PRICING WE HAVE TO BE VERY COMPETITIVE TO KEEP CUSTOMERS AND RUN TWICE AS HARD TO GET NEW BUSINESS HE SAID BUT ALTHOUGH BUSINESS CONFIDENCE MAY BE WANING GARY GROOM CHIEF FINANCIAL OFFICER OF COACHMEN INDUSTRIES INC SAYS THE ELKHART IND MAKER OF RECREATIONAL VEHICLES IS SEEING AN IMPROVEMENT IN CONSUMER CONFIDENCE SALES ARE GROWING ABOUT 15 NOW COMPARED WITH A YEAR AGO A TREND HE SEES SPREADING TO OTHER INDUSTRIES WE CONSIDER OURSELVES SOMETHING OF A LEADING ECONOMIC INDICATOR HE ADDS OTHER EXECUTIVES AREN'T AS OPTIMISTIC BUT SOME ARE SEEING HOPEFUL SIGNS AT AMETEK A PAOLI PA MANUFACTURER OF INSTRUMENTS AND MOTORS THERE IS A LITTLE FIRMER TONE TO ORDERS IN THE PAST FEW MONTHS SAYS ALLAN KORNFELD CHIEF FINANCIAL OFFICER AND AT AMDAHL CORP IN SUNYVALE CALIFI AM SEEING SOME ANECDOTAL EVIDENCE OF A PICKUP IN ORDERS OFFSHORE SAYS EDWARD THOMPSON CHIEF FINANCIAL OFFICER BUT HE ADDS THAT THE PRESSURE ON PROFITS ON THE MAKER OF BIG COMPUTERS REMAINS BECAUSE IN HIS INDUSTRY THERE ARE NO SUCH THINGS AS PRICE INCREASES ONLY DECREASES 9309280165 930928 ECONOMY EXISTINGHOME SALES EASED IN AUGUST BUT CONTINUE TO OUTPACE 1992 LEVELS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL GROWTH IN EXISTINGHOME SALES LEVELED OFF IN AUGUST BUT CONTINUED TO STRONGLY OUTPACE LAST YEAR'S SALES WITH FIRSTTIME BUYERS LEADING THE PUSH TO TAKE ADVANTAGE OF LOW INTEREST RATES SALES OF EXISTING SINGLEFAMILY HOMES FELL TO 381 MILLION UNITS IN AUGUST ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS THAT'S DOWN ABOUT 13 FROM JULY ON A SEASONALLY ADJUSTED ANNUALIZED BASIS ANNUALIZED FIGURES REFLECT WHAT WOULD BE THE YEARLY SALES IF THEY CONTINUED AT THE AUGUST PACE AUGUST EXISTINGHOME SALES WERE UP 141 FROM AUGUST 1992 MARKING THE SECONDSTRONGEST YEARTOYEAR INCREASE AFTER JULY THE NATIONAL MEDIAN RESALE PRICE FOR SINGLEFAMILY HOMES ROSE BY 4 TO 109200 FROM 105000 A YEAR AGO FREDERICK FLICK THE ASSOCIATION'S VICE PRESIDENT FOR RESEARCH SAID THAT WHILE AUGUST'S SALES GROWTH WASN'T AS STRONG AS JULY'S THE LATEST FIGURES REFLECT CONTINUING MARKET STRENGTH MR FLICK SAID HE EXPECTS EXISTINGHOME SALES TO REMAIN STRONG FOR THE REST OF 1993 AVERAGING AROUND 36 MILLION UNITS MONTHLY UP 44 FROM 1992 THE STRONGEST REGIONAL SHOWING IN AUGUST CAME FROM THE NORTHEAST WHERE EXISTINGHOME SALES CLIMBED NEARLY 9 OVER JULY RESALES IN THE MIDWEST WHICH HAD BEEN STRONG IN JULY DROPPED BY 9 LAST MONTH IN PART SAID MR FLICK BECAUSE OF THE BAD WEATHER AND HEAVY FLOODING THERE CALIFORNIA CONTINUED TO FEEL THE IMPACT OF DEFENSE AND COMPUTERINDUSTRY CUTS LAGGING BEHIND THE REST OF THE NATION IN AUGUST WITH RESALES DOWN 29 FROM JULY ACCORDING TO SEPARATE FIGURES RELEASED YESTERDAY BY THE CALIFORNIA ASSOCIATION OF REALTORS THE STATE'S RESALE PACE WAS ABOUT 10 AHEAD OF THE YEAREARLIER PACE THE GROUP SAID DRIVING THE STRONG NATIONAL RESALE MARKET HAVE BEEN MORTGAGE RATES WHICH CONTINUE TO SPIRAL LOWER THE NATIONAL AVERAGE FOR 30YEAR FIXEDRATE MORTGAGES HIT 711 IN AUGUST FALLING TO 695 AT THE END OF LAST WEEK THOSE LOW RATES CONTINUED TO PUSH HOMELOAN APPLICATIONS ONE OF THE LEADING RESALE INDICATORS TO MORE THAN 70 ABOVE NORMAL AS TALLIED BY THE MORTGAGE BANKERS ASSOCIATION OF AMERICA DAVID SEIDERS CHIEF ECONOMIST FOR THE NATIONAL ASSOCIATION OF HOME BUILDERS SAID THAT WHILE THE NATIONAL RESALE FIGURES WERE INTERESTDRIVEN IN AUGUST THE LOW RATES ALSO UNDERSCORE THE ECONOMY'S BASIC WEAKNESS INTEREST RATES CONTINUE TO TREND DOWN HE SAID BECAUSE THE ECONOMY IS WEAK JOB GROWTH IS WEAK AND CONSUMER CONFIDENCE IS WEAK MR SEIDERS SAID BUYERS FOR NEW AND EXISTING SINGLEFAMILY HOMES ARE COMING FROM THE RENTAL MARKET AT CURRENT INTEREST RATES A LOT OF PEOPLE ARE DISCOVERING IT'S CHEAPER TO BUY THAN RENT HE SAID AS A RESULT MULTIFAMILYHOUSING STARTS ARE AT ABYSMAL LOWS MR SEIDERS SAID EXISTINGHOME SALES AT AN ANNUAL RATE BY REGION IN MILLIONS SOURCE NATIONAL ASSOCIATION OF REALTORS 9309280164 930928 FINANCING BUSINESS MERIDIAN DIAGNOSTICS INC MERIDIAN DIAGNOSTICS INC CINCINNATI SAID IT SOLD 115 MILLION OF 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2001 MERIDIAN WHICH MAKES DIAGNOSTIC TEST KITS FOR THE IMMUNE SYSTEM SAID IT EXPECTS NET PROCEEDS OF 109 MILLION FROM THE OFFERING IT WILL USE 28 MILLION TO PAY OFF DEBT FROM THE RECENT ACQUISITION OF TWO PRODUCT LINES AND THE REMAINDER FOR CAPITAL IMPROVEMENTS AND GENERAL CORPORATE PURPOSES INCLUDING POSSIBLE ACQUISITIONS THE COMPANY SAID IT HAD NOTHING IN THE WORKS ON THE ACQUISITION FRONT OHIO CO WAS THE LEAD UNDERWRITER 9309280163 930928 TECHNOLOGY BRIEF BRISTOLMYERS SQUIBB CO FDA APPROVES NEW DRUG FOR HEARTATTACK TREATMENT BRISTOLMYERS SQUIBB CO PRINCETON NJ HAS RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO PROMOTE THE USE OF ITS HEART DRUG CAPOTEN IN CERTAIN PATIENTS AFTER HEART ATTACKS CAPOTEN WHICH REDUCES BLOOD VESSEL CONSTRICTION TO ALLOW EASIER BLOOD FLOW IS APPROVED AS A TREATMENT FOR HIGH BLOOD PRESSURE AND CONGESTIVE HEART FAILURE A STUDY PUBLISHED LAST YEAR SHOWED THAT CAPOTEN WHEN GIVEN TO CERTAIN PATIENTS WITHIN DAYS AFTER A HEART ATTACK REDUCED THEIR RISK OF DYING AND SLOWED THE DEVELOPMENT OF SEVERE HEART FAILURE THE PATIENTS HAD HEART DAMAGE TO THE LEFT VENTRICLE THAT REDUCED ITS PUMPING EFFICIENCY A CONDITION THAT AFFECTS ABOUT A THIRD OF HEART ATTACK VICTIMS 9309280162 930928 WHO'S NEWS SAS'S CARLZON STEPS DOWN TO CONCENTRATE ON MERGER STOCKHOLM JAN CARLZON STEPPED DOWN AS CHIEF EXECUTIVE OF SCANDINAVIAN AIRLINES SYSTEM SAYING HE WILL DEVOTE HIS TIME TO HELPING GET BACK ON TRACK THE FOURWAY MERGER TALKS TO FORM ONE OF EUROPE'S BIGGEST CARRIERS SAS KLM OF THE NETHERLANDS SWISSAIR AND AUSTRIAN AIRLINES HAVE SPENT HALF A YEAR NEGOTIATING A PROPOSED MERGER INTO A SINGLE NEW CARRIER CALLED ALCAZAR AN EARLY TIMETABLE LOOKED FOR A PRELIMINARY PACT BY SUMMER BUT SNAGS HAVE PUSHED THAT BACK TO OCTOBER CONVINCED THAT SAS NEEDED A CHIEF EXECUTIVE ABLE TO DEVOTE UNDIVIDED ATTENTION TO DAYTODAY OPERTIONS MR CARLZON SOUGHT BOARD APPROVAL TO RELINQUISH HIS POST AND CONCENTRATE EXCLUSIVELY ON THE ALCAZAR TALKS SAS DIRECTORS TAPPED JAN REINAS AS INTERIM SUCCESSOR MR REINAS CURRENTLY HEADS THE COMPANY'S NORWEGIAN OPERATIONS HOWEVER HE HAS ALREADY ACCEPTED A POST AS PRESIDENT OF NORWEGIAN PULP AND PAPER CONCERN NORSKE SKOG AS AND INTENDS TO LEAVE SAS BY APRIL 1 9309280161 930928 INTERNATIONAL YELTSIN ORDER AIMS TO EASE FOREIGN INVESTMENT RULES MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN ISSUED A DECREE AIMED AT EASING REGULATION OF FOREIGN INVESTMENT IN AN ATTEMPT TO ATTRACT MORE FOREIGN CAPITAL UNDER THE ORDER ONLY LAWS AND PRESIDENTIAL DECREES CAN LIMIT FOREIGN INVESTMENT AND THE ACTIVITIES OF FOREIGN COMPANIES IN RUSSIA THE ORDER ALSO WOULD GRANT A THREEYEAR EXEMPTION TO FOREIGN COMPANIES AND JOINT VENTURES FROM CERTAIN REGULATIONS IMPOSED AFTER THE ENTERPRISES WERE FORMED THE PRESIDENT'S DECREE CALLED ON THE CABINET TO PRODUCE DRAFTS OF AMENDMENTS TO LAWS GOVERNING INVESTMENT AND TAXATION TO ENSURE FAVORABLE CONDITIONS FOR THE ATTRACTION OF FOREIGN CAPITAL IN PRIORITY SECTORS ACCORDING TO A STATEMENT FROM THE PRESIDENTIAL PRESS SERVICE SEPARATELY CREDITOR BANKS EXPECT TO REACH A DEBT RESCHEDULING ACCEND WITH RUSSIA OVER THE FORMER SOVIET UNION'S COMMERCIAL DEBT SAID A DEUTSCHE BANK AG OFFICIAL WHO HEADS THE SOCALLED LONDON CLUB A GROUP OF COMMERCIAL BANK CREDITORS THE ACCORD WOULD COVER DEBTS THROUGH THE END OF THIS YEAR THE PROPOSAL NOW ON THE TABLE OFFERS RUSSIA A FIVEYEAR GRACE PERIOD ON INTEREST AND PRINCIPAL THE OFFICIAL SAID 9309280160 930928 BUSINESS BRIEF PREMIER BANCORP INC FIRM EXPECTS TO POST RISE OF 35 IN 3RDPERIOD PROFIT PREMIER BANCORP INC SAID IT EXPECTS TO REPORT NET INCOME OF AT LEAST 17 MILLION OR 60 CENTS A SHARE FOR THE THIRD QUARTER UP ABOUT 35 FROM 126 MILLION OR 49 CENTS A SHARE A YEAR EARLIER THE BANK HOLDING COMPANY BASED IN BATON ROUGE LA ATTRIBUTED THE GAIN TO LOWER INCOME TAXES AND A REDUCTION IN LOANLOSS PROVISIONS PREMIER BANCORP SAID IT EXPECTS TO REPORT NET INCOME OF SLIGHTLY MORE THAN 48 MILLION OR 170 A SHARE FOR THE FIRST NINE MONTHS UP 60 FROM 302 MILLION OR 117 A SHARE A YEAR EARLIER THE NINEMONTH PROJECTION EXCLUDES THE 44 MILLION GAIN FROM RECORDING DEFERRED TAX ASSETS IN THE FIRST QUARTER SAID THE COMPANY IT EXPECTS TO RELEASE ITS FINANCIAL RESULTS NEXT WEEK 9309280159 930928 CYPRESS SEMICONDUCTOR PURCHASE SAN JOSE CALIF CYPRESS SEMICONDUCTOR CORP SAID IT AGREED TO ACQUIRE IC DESIGNS INC A PRIVATELY HELD MAKER OF ELECTRONIC TIMING DEVICES FOR PERSONAL COMPUTERS FOR 16 MILLION CYPRESS SAID THE ACQUISITION OF THE KIRKLAND WASH COMPANY WILL ALLOW CYPRESS TO EXPAND ITS MARKET BASE IN THE LOWEREND PC FIELD CYPRESS CURRENTLY CONCENTRATES ITS CHIP SALES ON WORKSTATIONS AND OTHER HIGHEREND COMPUTER PRODUCTS THE ACQUISITION WILL BE FUNDED WITH INTERNALLY GENERATED CASH CYPRESS SAID 9309280158 930928 BUSINESS BRIEF NETWORK SYSTEMS CORP BYTEX CORP TO BE ACQUIRED FOR A TOTAL OF 47 MILLION NETWORK SYSTEMS CORP MINNEAPOLIS SAID IT AGREED TO ACQUIRE ALL COMMON SHARES OUTSTANDING OF BYTEX CORP FOR 680 A SHARE OR ABOUT 47 MILLION THE MAKER OF HIGHPERFORMANCE DATA COMMUNICATIONS SYSTEMS SAID THE BOARDS OF BOTH COMPANIES APPROVED THE ACQUISITION THE COMPANY SAID IT WILL BEGIN A CASH TENDER OFFER FOR BYTEX STOCK OUTSTANDING ON OCT 4 ENDING NOV 2 CONDITIONAL ON ITS ACQUIRING A MAJORITY OF THE SHARES OUTSTANDING AND SHARES ISSUABLE UNDER VARIOUS STOCK PLANS AMONG OTHER CONDITIONS ONCE THE ACQUISITION IS COMPLETE BYTEX A WESTBOROUGH MASSBASED SUPPLIER OF COMPUTER NETWORKING PRODUCTS WILL BE A UNIT OF NETWORK SYSTEMS ARTHUR CARR 62 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF BYTEX SAID HE WILL LEAVE THE COMPANY AFTER A BRIEF TRANSITION AND RETIRE THE UNIT WILL BE LED BY MICHAEL MANCUSI 52 CURRENTLY VICE PRESIDENT MARKETING AT BYTEX THE COMPANY SAID 9309280157 930928 WHO'S NEWS HARTFORD STEAM BOILER INSPECTION & INSURANCE CO HARTFORD STEAM BOILER INSPECTION & INSURANCE CO HARTFORD CONN GORDON KREH WAS NAMED PRESIDENT AND A DIRECTOR OF THIS MACHINERY INSURANCE AND ENGINEERING CONSULTING CONCERN INCREASING THE BOARD TO 12 MR KREH SUCCEEDS WILSON WILDE 66 YEARS OLD A DIRECTOR WHO WILL REMAIN HARTFORD STEAM'S CHIEF EXECUTIVE OFFICER AND WILL ASSUME THE POSITION OF CHAIRMAN WHICH HAS BEEN VACANT SINCE 1971 MR KREH 45 WAS SENIOR VICE PRESIDENT AND HAS BEEN WITH THE COMPANY SINCE 1971 IN VARIOUS POSITIONS 9309280156 930928 CREDIT MARKETS YIELD ON 30YEAR TREASURY PLUNGES TO 594 AS THE FED'S SHIFT ON RATES HELPS TO BOOST PRICES BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK INVESTORS RETURNED TO THE TREASURY SECURITIES MARKET YESTERDAY AND PROPELLED NOTES AND BONDS TO THEIR BEST PERFORMANCE IN MORE THAN TWO WEEKS THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 1 1/8 POINTS OR MORE THAN 1125 FOR A BOND WITH A 1000 FACE VALUE TO 104 5/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE PLUNGED TO 594 FROM 603 ON FRIDAY IT WAS THE FIRST TIME SINCE SEPT 15 THAT THE YIELD HAD DROPPED BELOW 6 THE 10YEAR NOTE ROSE MORE THAN 3/4 POINT TO 103 14/32 TO YIELD 528 DOWN FROM 537 TRADERS STRESSED THAT THERE WAS NO SINGLE FACTOR DRIVING UP PRICES OF TREASURY SECURITIES SUPPORTING THE MARKET HOWEVER WAS NEWS OF THE FEDERAL RESERVE'S MOVE AWAY FROM A TILT TOWARD HIGHER INTEREST RATES THE RALLY BEGAN IN OVERNIGHT TRADING AS DEALERS REACTED TO FRIDAY'S NEWS THAT THE CENTRAL BANK'S POLICYMAKING FEDERAL OPEN MARKET COMMITTEE HAD VOTED IN AUGUST TO RETURN TO A NEUTRAL STANCE ON INTEREST RATES AFTER THREE MONTHS OF FAVORING HIGHER RATES THE TIMING OF THE MOVE SURPRISED MANY ON WALL STREET SINCE MANY ANALYSTS HAD BELIEVED THAT THE FED LEFT ITS BIAS IN PLACE AT THE AUGUST MEETING AND SWUNG TO A NEUTRAL STANCE AT LAST WEEK'S COMMITTEE MEETING THE FED'S EARLY SHIFT PROVED ENOUGH OF A SURPRISE TO SPARK BUYING OVERSEAS BUT ANALYSTS TENDED TO PLAY DOWN THE LONGTERM SIGNIFICANCE OF THE CHANGE FOR THE MARKET I DON'T THINK THE OUTLOOK FOR POLICY HAS CHANGED SAID DAVID GREENLAW ECONOMIST AT MORGAN STANLEY & CO FOR SOME TIME IT HAS BEEN CLEAR THAT THE FED WAS ON HOLD THE BUYING CONTINUED IN US ACTIVITY LED BY DEALERS' CLOSING OUT SHORT POSITIONS IN WHICH THEY BORROW AND SELL SECURITIES IN HOPES OF BUYING THEM BACK AT A LOWER PRICE TREASURYS HELD ON TO THEIR GAINS THROUGHOUT THE MORNING IN CONTRAST TO RECENT SESSIONS THAT PROMPTED INDIVIDUAL CUSTOMERS TO STEP UP TO THE PLATE THE MARKET WENT UP FRIDAY IT OPENED UP AGAIN MONDAYJ AND IT NEVER TURNED BACK SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC AND THAT BROUGHT SMALL INVESTORS IN THERE WAS NO BIG RUSH IT JUST KIND OF GROUND HIGHER TIM HEATON A BOND TRADER AT NIKKO SECURITIES CO INTERNATIONAL SAID THE BUSINESS HE SAW YESTERDAY WAS ALMOST ENTIRELY ON THE BUY SIDE WITH THE 30YEAR TREASURY BOND PRICE AT 104 5/32 AT THE END OF YESTERDAY'S RALLY IT HAD RECOUPED MUCH OF THE LOSSES OF THE PAST TWO WEEKS THAT SELLOFF HAD BROUGHT THE PRICE OF THE LONG BOND TO 101 19/32 ON SEPT 21 FROM 105 13/32 ON SEPT 8 STEPHEN SLIFER CHIEF FINANCIAL ECONOMIST AT LEHMAN GOVERNMENT SECURITIES INC ARGUED THAT THE WORST IS PROBABLY OVER FOR THE BOND MARKET I THINK WE'VE HAD OUR CORRECTION HE SAID BUT AS FOR WHEN YOU GET THE NEXT LEG DOWN IN YIELD I DON'T KNOW NEVERTHELESS THE TREND REMAINS INTACT FOR LOWER LONGTERM RATES SAID MR SLIFER IT'S CONTINUED GOOD INFLATION NEWS AND THE SHIFT IN THE BORROWING PATTERN ON THE PART OF THE TREASURY DEPARTMENT THAT WILL PULL LONG RATES DOWN HE SAID IN ADDITION TO THE ECONOMIC FUNDAMENTALS THE INFLUX OF CASH INTO TREASURYS FROM THE MORTGAGEBACKED SECURITIES MARKET IS NOT LIKELY TO LET UP ANY TIME SOON SAID MR SLIFER IF WE CONTINUE TO HAVE ALL THIS REFINANCING ACTIVITY THOSE CASH FLOWS TO PORTFOLIO MANAGERS WILL CONTINUE AND THEY HAVE TO PUT THAT MONEY TO WORK HE EXPLAINED AS A RESULT BY MID1994 THE BOND SHOULD BE YIELDING SOMEWHERE BETWEEN 5 AND 5 1/2 HE PREDICTED I DON'T THINK WE'RE AT THE END OF THE PARTY HE SAID IT WILL TAKE A SUSTAINED FASTER PACE OF ECONOMIC ACTIVITY TO DERAIL THE BOND MARKET RALLY MR SLIFER ARGUED WHAT YOU HAVE TO HAVE IN ORDER TO BECOME NEGATIVE ON THIS MARKET IS SOME PROSPECT THAT GDP IS GOING TO PICK UP TO 4 ON A CONSISTENT BASIS HE SAID BUT GIVEN THE RECENTLY ENACTED TAX INCREASES A SLOW GLOBAL ECONOMY AND CONTINUED CORPORATE RETRENCHMENT THAT DOESN'T APPEAR LIKELY HE SAID MR GREENLAW OF MORGAN STANLEY MEANWHILE WAS NOT QUITE AS BULLISH WE SEE A TRADINGRANGE MENTALITY WITH A SLIGHT BIAS TOWARD LOWER RATES MR GREENLAW SAID ADDING THAT RATES MAY BE ABLE TO GO A LITTLE BIT LOWER WITH SOME WEAKER ECONOMIC DATA AND SOME OF THE DRAG ASSOCIATED WITH THE TAX PROGRAMS IN THE SHORT TERM A LOT WILL DEPEND ON THE NONFARM PAYROLLS PORTION OF THE SEPTEMBER EMPLOYMENT REPORT DUE OCT 8 HE SAID OUR CALL IS FOR A NUMBER ON THE WEAKER SIDE HE ADDED WE SEE PAYROLLS UP 100000 WITH THE CONSENSUS LIKELY TO BE UP 150000 OR 175000 IF OUR FORECAST IS REALIZED I THINK YOU'D OBVIOUSLY SEE YIELDS HEADING A LITTLE BIT LOWER MEANWHILE YESTERDAY THE TREASURY SOLD 2247 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 290 FOR A COUPONEQUIVALENT YIELD OF 296 COMPARED WITH 299 AT LAST WEEK'S AUCTION THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 302 FOR A COUPONEQUIVALENT YIELD OF 311 DOWN FROM 315 AT LAST WEEK'S AUCTION AG 0315 HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED SEPT 30 THE 13WEEK BILLS MATURE DEC 30 1993 AND THE 26WEEK BILLS MATURE MARCH 31 1994 MUNICIPAL BONDS FINISHED LETHARGIC TRADING UNCHANGED TO 1/2 POINT HIGHER PRICES FIRMED IN EARLY ACTIVITY AS TREASURYS ROSE ON OPTIMISM ABOUT THE NEARTERM OUTLOOK FOR US INTEREST RATES BUT BUYING OF TAXEXEMPT ISSUES WAS LIMITED ALTHOUGH MUNIS HAVEN'T RISEN THAT MUCH RECENTLY THERE'S STILL A LOT OF BULLISH SENTIMENT IN THE MARKET FEDERAL INCOME TAX INCREASES ENACTED IN AUGUST ARE EXPECTED TO LURE MORE INVESTORS TO THE MARKET IN THE NEXT FEW MONTHS IN LATE TRADING THE NEW YORK STATE LOCAL GOVERNMENT ASSISTANCE CORP'S 550 COUPON BONDS MATURING IN 2022 ROSE 1/2 POINT TO 99 TO YIELD 556 THE ORLANDO & ORANGE COUNTY FLA EXPRESSWAY AUTHORITY'S 525 COUPON REVENUE REFUNDING BONDS MATURING IN 2023 ROSE 1/8 POINT TO 98 1/2 TO YIELD 533 IN THE PRIMARY MARKET THE BIGGEST NEW ISSUE WAS THE NEW YORK METROPOLITAN TRANSPORTATION AUTHORITY'S 218 MILLION SERIES N TRANSIT FACILITIES REVENUE BONDS A FIRST BOSTON CORP GROUP PRICED THE BONDS TO YIELD FROM 300 IN 1994 TO 540 FOR ZEROCOUPON BONDS DUE IN 2012 TO 2014 MOST OF THE SECURITIES ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP OR FINANCIAL GUARANTY INSURANCE CO AND ARE RATED TRIPLEA BY MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP THE BONDS ARE SECURED PRIMARILY BY FARE REVENUES AND CERTAIN OPERATING SUBSIDIES RECEIVED BY THE NEW YORK CITY TRANSIT AUTHORITY AN MTA SUBSIDIARY NO MAJOR CORPORATE DEBT ISSUES WERE PRICED YESTERDAY BUT SEASONED INVESTMENTGRADE ISSUES GOT A LIFT AS TREASURY PRICES SURGED SECONDARY CORPORATE ISSUE PRICES ROSE AS MUCH AS A FULL POINT ISSUANCE HAS TAILED OFF IN PART BECAUSE COMPANIES WITH FISCAL YEARS ENDING SEPT 30 HAVE COMPLETED FUNDING PROGRAMS FOR THAT PERIOD YIELD SPREADS OF MOST INVESTMENTGRADE ISSUES WERE LITTLE CHANGED TRADING IN THE HIGHYIELD SECTOR WAS DESCRIBED AS LIGHT WITH NO NEW ISSUES COMING TO MARKET JUNK BONDS WERE TAKING THEIR CUES FROM STRENGTH IN TREASURYS AND STOCKS NOT FROM ECONOMIC FUNDAMENTALS MORTGAGE SECURITIES NEVER CAUGHT UP WITH RALLYING TREASURYS ALTHOUGH CURRENT COUPONS POSTED GAINS OF 1/2 POINT THE SURGE IN TREASURY PRICES HAS REIGNITED PREPAYMENT CONCERNS WHICH HAD EBBED AS THE RALLY APPEARED TO STALL LAST WEEK FALLING RATES PROMPT HOMEOWNERS TO REFINANCE THE LOANS THAT UNDERLIE THE MORTGAGEBACKED SECURITIES TO AVOID THE BARRAGE OF PREPAYMENTS SOME INVESTORS MAY TAKE TO A NEW TYPE OF MORTGAGE SECURITY OFFERED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THIS SESSION THE SECURITY IS BACKED BY MULTIFAMILY LOANS WHICH USUALLY ARE WRITTEN WITH PREPAYMENT PENALTIES THE 2303 MILLION OFFER IS UNDERWRITTEN BY MERRILL LYNCH & CO WHICH SOLD A COMPANION 285 MILLION SUBORDINATE CLASS TO PRIVATE INVESTORS THE FANNIE MAE GUARANTEE WAS ONLY ON THE SENIOR CERTIFICATES DEALERS REFRAINED FROM ISSUING NEW SECURITIES WITHOUT THE CERTAINTY THAT THEY COULD SELL OFF THE VARIOUS CLASSES NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED YESTERDAY AS A RESULT THE YIELD SPREAD BETWEEN MORTGAGE SECURITIES AND COMPARABLE TREASURYS CONTINUED TO WIDEN FREDDIE MAC GOLD 65 SECURITIES FOR INSTANCE WERE YIELDING 632 AT THE END OF THE SESSION 1044 POINTS ABOVE THE 5284 YIELD ON THE BENCHMARK TREASURY 10YEAR NOTE THE SPREAD HAD NARROWED TO LESS THAN 1 POINT IN THE PAST TWO WEEKS IN SECONDARY TRADING CURRENT 6 COUPONS FOR OCTOBER DELIVERY ADDED 16/32 GINNIE MAE 6 SECURITIES ENDED AT 99 18/32 FREDDIE MAC GOLD 6 SECURITIES FINISHED AT 98 31/32 AND FANNIE MAE 6 SECURITIES SETTLED AT 98 28/32 9309280155 930928 NORD RESOURCES SETTLES LITIGATION DAYTON OHIO NORD RESOURCES CORP ANNOUNCED ANOTHER SETTLEMENT IN ITS LITIGATION OVER ALLEGEDLY FRAUDULENT DEALINGS BY A COMPANY THAT HELD EXCLUSIVE RIGHTS TO SELL A NORD PRODUCT NORD A METAL CONCERN SAID IT RECEIVED 32 MILLION SEPT 24 FROM AN UNDISCLOSED PARTY BRINGING THE TOTAL TO 8 MILLION NORD'S SIERRA RUTILE LTD UNIT SUED SEVERAL FORMER AND PAST OWNERS AND OFFICERS OF BOMAR RESOURCES INC THE FORMER SALES AGENT NOW KNOWN AS BRINC LTD AFTER NORD SAID BOMAR DILUTED RUTILE WHICH IS USED IN MAKING PAINT PIGMENTS BEFORE SELLING IT 9309280154 930928 INTERNATIONAL VODAFONE GROUP PLANS PURCHASE LONDON VODAFONE GROUP PLC A MOBILETELEPHONE OPERATOR AGREED TO BUY AIR CALL HOLDINGS LTD A PAGING NETWORK FROM BELLSOUTH ENTERPRISES INC A UNIT OF BELLSOUTH CORP TERMS WERE NOT DISCLOSED A SPOKESWOMAN FOR VODAFONE SAID THE COMBINATION OF AIR CALL WITH VODAFONE'S OWN VODAPAGE LTD WILL CREATE THE SECONDLARGEST BRITISH PAGING OPERATOR WITH 26 MARKET SHARE THE LARGEST IS CELLNET A JOINT VENTURE BETWEEN BRITISH TELECOMMUNICATIONS PLC AND SECURICOR GROUP PLC WHICH HAS MORE THAN 50 OF THE BRITISH PAGING MARKET 9309280153 930928 TRACOR GETS AIR FORCE CONTRACT AUSTIN TEXAS TRACOR INC SAID ITS TRACOR AEROSPACE UNIT RECEIVED A 208 MILLION TWOYEAR CONTRACT TO PROVIDE 3800 AN/ALE47 SEQUENCER SWITCHES TO THE AIR FORCE TRACOR AEROSPACE SAID DELIVERIES WILL BEGIN THIS MONTH AND CONTINUE THROUGH 1995 THE SWITCHES WILL UPGRADE COMPONENTS OF ALE40 COUNTERMEASURES DISPENSER SYSTEMS ABOARD US FIGHTER AND CARGO AIRCRAFT AND HELICOPTERS THE INITIAL ORDER THE COMPANY SAID IS PART OF A PLANNED PROCUREMENT OF 10000 TO 14000 SEQUENCER SWITCHES TO UPGRADE SYSTEMS THAT DISPENSE CHAFF FLARES ACTIVE RADIOFREQUENCY DECOYS AND OTHER MATERIAL FROM MILITARY AIRCRAFT 9309280152 930928 BUSINESS BRIEF BROOKE GROUP LTD DISTRIBUTION OF SKYBOX UNIT POSTPONED FOR SECOND TIME BROOKE GROUP LTD NEW YORK POSTPONED ITS PROPOSED DISTRIBUTION OF ITS SKYBOX INTERNATIONAL INC UNIT FOR THE SECOND TIME IN ORDER TO RESPOND TO SECURITIES AND EXCHANGE COMMISSION COMMENTS ON THE PLAN BROOKE GROUP WHICH ALSO OWNS CIGARETTEMAKER LIGGETT GROUP INC HAD ORIGINALLY SCHEDULED THE DISTRIBUTION FOR SEPT 23 WITH A RECORD DATE OF SEPT 20 SINCE THEN THE PLANNED SPINOFF HAS BEEN PUSHED BACK TO YESTERDAY AND NOW BROOKE GROUP SAYS THE DISTRIBUTION WILL BE TOMORROW AT THE EARLIEST BROOKE GROUP DECLINED TO ELABORATE ON THE SEC'S COMMENTS THE SPINOFF OF THE SPORTS AND ENTERTAINMENT TRADING CARD UNIT IS INTENDED TO REDUCE BROOKE'S OBLIGATION TO HOLDERS OF CONTINGENT VALUE RIGHTS CURRENTLY ESTIMATED AT NEARLY 50 MILLION THE SECURITIES ISSUED AS PART OF A MERGER IN 1990 ESSENTIALLY GUARANTEE BROOKE'S STOCK WOULD BE TRADING AT ABOUT 1950 BY THIS NOV 15 YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING BROOKE GROUP SHARES CLOSED AT 350 UNCHANGED 9309280151 930928 INTERNATIONAL OPPORTUNITY KNOCKS FOR PALESTINIAN BANK WEST BANK'S FIRST S&L HOPES TO OPEN DOOR TO PROSPERITY BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL RAMALLAH ISRAELIOCCUPIED WEST BANK AT A CONSTRUCTION SITE IN DOWNTOWN RAMALLAH KHALED SHAIR POINTS TO WOODEN PLANKS STACKED IN ONE CORNER THIS IS WHERE WE ARE GOING TO PUT THE CASH MACHINES HE SAYS HE HEADS DOWN A CONCRETE STAIRWAY THOUSANDS OF SAFETY DEPOSIT BOXES WILL BE HERE MOST PEOPLE STILL KEEP THEIR MONEY UNDER FLOOR TILES TWO MONTHS AGO MR SHAIR A 44YEAROLD PALESTINIANAMERICAN QUIT HIS JOB AT A SAUDI ARABIAN MERCHANT BANK IN CHICAGO TO BECOME CHIEF EXECUTIVE OFFICER AND GENERAL MANAGER OF COMMERCIAL BANK OF PALESTINE THE FIRST PALESTINIAN BANK TO OPEN IN THE OCCUPIED TERRITORIES THEN CAME THE HISTORIC AGREEMENT BETWEEN ISRAEL AND THE PALESTINE LIBERATION ORGANIZATION GRANTING IMMEDIATE PALESTINIAN SELFRULE IN THE WEST BANK CITY OF JERICHO AND THE GAZA STRIP AND MORE LIMITED AUTONOMY IN THE REST OF THE WEST BANK COMMERCIAL BANK OF PALESTINE SET TO OPEN IN JANUARY IS VIEWED AS ONE OF THE KEYS FOR THE DEVELOPMENT OF THE PALESTINIAN ECONOMY THE WORLD BANK ESTIMATES THE PALESTINIAN ECONOMY NEEDS 3 BILLION IN AID FOR INFRASTRUCTURE IN THE NEXT DECADE BUT EVEN IF THIS TARGET IS MET THE DIFFICULTIES ENCOUNTERED IN CREATING COMMERCIAL BANK OF PALESTINE SHOW THAT GETTING THE ECONOMY OFF AND RUNNING WON'T BE EASY THERE ARE NO SAFEDEPOSIT BOXES OR AUTOMATIC CASH MACHINES IN THE ENTIRE WEST BANK OR GAZA STRIP PEOPLE KEEP THEIR SAVINGS AT HOME IN GOLD OR JORDANIAN DINARS WHICH ARE LEGAL TENDER ON THE WEST BANK THE BANKER FOR MOST PALESTINIANS IS THE MONEY CHANGER ON THE STREET CORNER IF YOU WANT TO OPEN A BANK IN THE US THE FEDERAL RESERVE HAS A CHECKLIST SAYS MR SHAIR BUT THERE IS NO PREVIOUS EXPERIENCE REGARDING HOW TO SET UP OPERATE AND REGULATE A PALESTINIAN BANK EITHER UNDER ISRAELI OCCUPATION OR UNDER PALESTINIAN SELFRULE WHEN THE ISRAELIS CAPTURED THE WEST BANK AND THE GAZA STRIP IN THE 1967 WAR THEY SHUT DOWN THE 33 BANK BRANCHES OPERATING THERE SINCE THEN THE PALESTINIAN ECONOMY HAS LACKED BANKING SERVICES PALESTINIAN ENTREPRENEURS HAD TROUBLE GETTING LOANS FROM ISRAELI BANKS BECAUSE OF HIGH INTEREST RATES AND BECAUSE THEY REFUSED TO OFFER LAND AS COLLATERAL OUT OF CONCERN THAT IT WOULD BE CONFISCATED AND SOLD TO JEWISH SETTLERS IF THEY FAILED TO MAKE REPAYMENTS TO ADDRESS THESE PROBLEMS THE NABLUS BRANCH OF CAIRO AMMAN BANK OF JORDAN WAS REOPENED IN 1986 UNDER JOINT SUPERVISION OF THE ISRAELI AND JORDANIAN CENTRAL BANKS CAIRO AMMAN BASED IN AMMAN JORDAN NOW HAS SEVEN BRANCHES ON THE WEST BANK BUT PALESTINIANS SAY THAT STILL DOESN'T MEET THEIR FINANCIAL NEEDS THE BANK STOPPED TAKING DEPOSITS WHEN ITS DEPOSIT CEILING WAS SURPASSED AND BECAUSE THERE IS NO COMPETITION INTEREST ON SAVINGS IS LOW AND LETTERS OF CREDIT AND LOANS HARD TO GET WHEN WE BUY RAW MATERIALS FROM EUROPE IT HAS TO BE FINANCED THROUGH THE BANKS BUT CAIRO AMMAN AND THE ISRAELI BANKS WOULDN'T GIVE US A LETTER OF CREDIT WE HAD TO PAY THEM 100 OF THE MONEY ALL THE BANK WOULD DO IS TRANSFER THE MONEY ABROAD SAYS RIYAD ALSULEH FINANCIAL MANAGER OF BALSAM PHARMACEUTICAL CO IN RAMALLAH A FOUNDING PARTNER OF COMMERCIAL BANK OF PALESTINE A YEAR AGO MR ALSULEH AND 11 OTHER PALESTINIAN BUSINESSMEN WITH HOMES OR OFFICES IN RAMALLAH GOT TOGETHER AND APPROACHED THE ISRAELIS ABOUT SETTING UP A PALESTINIAN BANK WITH WORKING CAPITAL OF 10 MILLION JORDANIAN DINARS 1481 MILLION THEY PUT UP ABOUT 40 OF THE CAPITAL THEMSELVES THE REST WILL BE RAISED IN A PUBLIC OFFERING THIS FALL THEY PERSUADED MR SHAIR WHO HAS A MASTER'S DEGREE IN ECONOMICS FROM NORTHEASTERN ILLINOIS UNIVERSITY IN CHICAGO TO BE CHIEF EXECUTIVE OFFICER THEN THEY SET ABOUT HIRING A STAFF TWELVE PALESTINIANS ARE BEING TRAINED AT BANKS IN JORDAN AND 18 MORE STAFF POSITIONS WILL BE FILLED SOON BY THE END OF 1994 THE BANK HOPES TO HAVE BRANCHES OPERATING IN ALL THE MAJOR WEST BANK TOWNS STILL THERE ARE LARGE PROBLEMS ONE OF THE REASONS CAIRO AMMAN HAS BEEN SO CAUTIOUS ABOUT MAKING LOANS IS THAT THERE IS NO WAY TO COLLECT THEM BECAUSE THE WEST BANK LACKS A STRONG POLICE FORCE A BORROWER KNOWS THERE IS NO ONE TO FORCE HIM TO PAY BACK A LOAN MR SHAIR ACKNOWLEDGES THE PROBLEM HE SAYS THAT AT THE BEGINNING AT LEAST THE BANK WILL ONLY MAKE LOANS TO PEOPLE IT KNOWS PERSONALLY IT ISN'T CLEAR IF THE NEW BANK NEEDS APPROVAL FROM JORDAN'S CENTRAL BANK MR SHAIR SAYS IT DOESN'T BECAUSE JORDAN IN 1988 SEVERED ITS ADMINISTRATIVE TIES WITH THE WEST BANK BUT THE JORDANIANS INSIST OTHERWISE BECAUSE THE BANK PLANS TO KEEP RESERVES IN JORDANIAN DINARS JORDAN WANTS ALL OF ITS BANK BRANCHES TO REOPEN IN THE WEST BANK BEFORE A PALESTINIAN BANK OPENS ITS DOORS SAYS SAMIR ALBARGOUTI DIRECTOR OF THE UNITED AGRICULTURAL ESTABLISHMENT A PALESTINIAN CREDIT INSTITUTION IN JERUSALEM DESPITE THE UNCERTAINTY SURROUNDING THE NEW POLITICAL REALITY COMMERCIAL BANK OF PALESTINE HAS ALREADY BEGUN TO CARVE OUT AN IMPORTANT PLACE IN THE EMERGING ECONOMIC LANDSCAPE MR SHAIR USED HIS BANKING CONTACTS TO WANGLE AN INVITATION FOR THE BANK TO ATTEND THE INTERNATIONAL MONETARY FUND'S ANNUAL MEETING IN WASHINGTON EVEN AS THEY GAMBLE ON THE CHANCES FOR PEACE BY OPENING A BANK THE FOUNDERS ARE RESERVED ABOUT THE ISRAELPLO AGREEMENT BALSAM PHARMACEUTICAL'S MR ALSULEH SAYS SIX OF THE 12 PARTNERS HAVE SPENT TIME IN ISRAELI JAILS AND MR SHAIR'S CONTRADICTORY EMOTIONS ARE EVIDENT THE PROBLEM IS COMPLICATED AND I'M NOT TOO OPTIMISTIC ABOUT THE AGREEMENT IT DOESN'T ADDRESS THE RIGHTS OF THE PEOPLE WHOSE HOMES WERE TAKEN IN 1948 HE SAYS THEN HE BRIGHTENS FIVE YEARS AGO THERE WAS NO JOB FOR ME HERE NOW I'M THINKING THAT I MIGHT STUDY HEBREW 9309280150 930928 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO GROCERY RETAILER POSTS DROP OF 22 IN 2NDQUARTER PROFIT GREAT ATLANTIC & PACIFIC TEA CO REPORTED A 22 DROP IN NET INCOME FOR THE FISCAL SECOND QUARTER FOR THE QUARTER ENDED SEPT 11 THE MONTVALE NJ COMPANY SAID NET DECLINED TO ABOUT 6 MILLION OR 15 CENTS A SHARE FROM 76 MILLION OR 20 CENTS A SHARE A YEAR EARLIER REVENUE EASED 14 TO 24 BILLION MORE DISTRESSING FOR THE GROCERY RETAILER WAS THE 14 DECLINE IN SALES AT STORES OPEN MORE THAN ONE YEAR THE DECLINE IN SAMESTORE SALES A KEY BAROMETER OF A RETAILER'S HEALTH HAD NARROWED TO LESS THAN 1 IN THE FISCAL FIRST QUARTER THE COMPANY WHICH GETS 25 OF ITS SALES IN CANADA SAID UNFAVORABLE EXCHANGE RATES WITH CANADA HURT SECONDQUARTER EARNINGS IT SAID POOR WEATHER ALSO REDUCED SALES IN AUGUST BUT THE RETAILER INDICATED SALES FOR THE CURRENT FISCAL THIRD QUARTER SHOWED SIGNS OF IMPROVEMENT WITH SEPTEMBER'S SALES RUNNING AHEAD OF LAST YEAR'S FIGURES 9309280149 930928 BUSINESS BRIEF ACME METALS INC STEELMAKER EXPECTS TO POST LOSS FOR THE THIRD QUARTER ACME METALS INC CITING HIGHERTHANEXPECTED COSTS SAID IT WAS HARD PRESSED TO MAINTAIN PROFITABILITY FOR THE THIRD QUARTER ENDED SUNDAY AFTER THREE CONSECUTIVE PROFITABLE QUARTERS ACME BLAMED THE EXPECTED DEPRESSED RESULTS ON MAINTENANCE SHUTDOWNS AT ITS STEEL PACKAGING AND TOOL SUBSIDIARIES ALONG WITH SEASONALLY LOWER SHIPMENTS FROM SUMMER SHUTDOWNS AT CUSTOMER PLANTS MOREOVER THE STEEL UNIT HAD AN EIGHTDAY PRODUCTION OUTAGE AT ITS PRIMARY ROLLING MILL WHEN A GENERATOR FAILED STILL THE RIVERDALE ILL STEELMAKER SAID IT EXPECTED TO POST SUBSTANTIALLY BETTER RESULTS FOR THE QUARTER COMPARED WITH A YEAR EARLIER WHEN IT HAD A LOSS OF 26 MILLION OR 49 CENTS A SHARE INCLUDING A CHARGE OF 13 MILLION TO COVER A REDUCTION IN ITS SALARIED WORK FORCE 9309280148 930928 BUSINESS BRIEF METROPOLITAN FINANCIAL CORP ACCORD IS REACHED ON WYOMING BANK PURCHASE METROPOLITAN FINANCIAL CORP MINNEAPOLIS SAID IT AGREED DEFINITIVELY TO ACQUIRE ROCKY MOUNTAIN FINANCIAL CORP CHEYENNE WYO FOR 642 MILLION THE BANK HOLDING COMPANY SAID ROCKY MOUNTAIN'S BANK SUBSIDIARY ROCKY MOUNTAIN BANK HAD ASSETS OF 559 MILLION AT AUG 31 METROPOLITAN SAID IT WILL PAY 3 MILLION OF TRANSACTION EXPENSES IN CONNECTION WITH THE MERGER METROPOLITAN SAID THE TRANSACTION WILL PROVIDE EARNINGS OF 10 CENTS TO 15 CENTS A SHARE IN THE FIRST YEAR IT SAID THE PURCHASE IS EXPECTED TO CLOSE LATE IN THE 1994 FIRST QUARTER PENDING REGULATORY APPROVALS 9309280147 930928 BUSINESS BRIEF COMPAQ COMPUTER CORP OFFICE IS OPENED IN BEIJING FIVE MORE PLANNED FOR CHINA COMPAQ COMPUTER CORP SAID IT OPENED AN OFFICE IN BEIJING AND THAT IT WILL OPEN FIVE MORE OFFICES IN CHINA BY THE END OF 1994 IN SHANGHAI SHENZEN SHENYANG XIAN AND CHENGDU ECKHARD PFEIFFER PRESIDENT AND CHIEF EXECUTIVE OF THE HOUSTON COMPUTER CONCERN NOTED THAT COMPAQ RECENTLY FORMED A MANUFACTURING JOINT VENTURE IN CHINA AND SAID OUR NEXT MOVE IS TO ESTABLISH A COMPREHENSIVE NETWORK OF REPRESENTATIVE OFFICES TO ENSURE TECHNICAL AND AFTERSALES SERVICES FOR CHINESE CUSTOMERS COMPAQ FIRST ENTERED THE CHINA MARKET IN 1984 BECOMING MORE ACTIVE IN 1990 PRODUCTION OF CIRCUIT BOARDS AND PERSONAL COMPUTERS IN THE JOINT VENTURE WITH BEIJING STONE GROUP CORP IS EXPECTED TO BEGIN IN DECEMBER THE COMPANY SAID 9309280146 930928 BUSINESS BRIEF RAX RESTAURANTS INC COURT APPROVAL IS EXPECTED FOR CHAIN'S REORGANIZATION RAX RESTAURANTS INC SAID THE US BANKRUPTCY COURT INTENDS TO CONFIRM THE CHAPTER 11 REORGANIZATION PLAN OF THE COMPANY AND ITS SUBSIDIARIES THE CONFIRMATION WOULD PAVE THE WAY FOR THE DUBLIN OHIO FASTFOOD RESTAURANT OPERATOR TO EMERGE FROM BANKRUPTCY WITHIN TWO WEEKS THE REORGANIZATION PLAN CALLS FOR CITICORP VENTURE CAPITAL LTD A CITICORP UNIT THAT HAS INVESTED 13 MILLION IN RAX TO RECEIVE A CONTROLLING EQUITY STAKE IT OWNED 55 OF RAX BEFORE THE FILING GENERAL UNSECURED CREDITORS WILL RECEIVE COMMON STOCK OR CASH RECOVERIES RAX'S CREDITORS ALREADY HAVE APPROVED THE PLAN EXISTING COMMON STOCK WILL BE CANCELED RAX FILED FOR BANKRUPTCY PROTECTION NOV 24 1992 THE COMPANY AND ITS SUBSIDIARIES OPERATE 85 COMPANYOWNED RESTAURANTS 120 SITES ARE FRANCHISES 9309280145 930920 QVC NETWORK READIES OFFER FOR PARAMOUNT TURNER AND OTHER FIRMS ARE ALSO WEIGHING BIDS FOLLOWING VIACOM PACT BY WALL STREET JOURNAL REPORTERS LAURA LANDRO AND JOHNNIE L ROBERTS IN NEW YORK AND ANITA SHARPE IN ATLANTA COMCAST CORP AND LIBERTY MEDIA CORP HAVE AGREED TO PUMP 1 BILLION INTO QVC NETWORK INC TO BACK QVC CHAIRMAN BARRY DILLER IN A RIVAL OFFER FOR PARAMOUNT COMMUNICATIONS INC PEOPLE FAMILIAR WITH THE PLAN SAID PARAMOUNT COMMUNICATIONS HAS AGREED TO BE ACQUIRED BY VIACOM INC IN A DEAL CURRENTLY VALUED AT 75 BILLION COMCAST AND LIBERTY ALONG WITH MR DILLER ARE CONTROLLING SHAREHOLDERS IN QVC A QVC OFFER WHICH IS EXPECTED TO EXCEED 70 A SHARE IN STOCK AND CASH OR MORE THAN 8 BILLION COULD COME THIS WEEK PEOPLE INVOLVED IN THE PLAN SAID MEANWHILE CABLE PROGRAMMER TED TURNER WON APPROVAL FROM HIS COMPANY'S DIRECTORS FRIDAY TO EXPLORE A BID AND APPROACHED QVC OVER THE WEEKEND ABOUT A JOINT EFFORT FOREIGN MEDIA GIANT BERTELSMANN AG AND BLOCKBUSTER ENTERTAINMENT CORP WERE ALSO EXPLORING BIDS INDUSTRY EXECUTIVES SAID COX ENTERPRISES INC OWNER OF THE SIXTHLARGEST US CABLE SYSTEM IS ALSO SAID TO BE SIZING UP A WAY TO PARTICIPATE IN THE PARAMOUNT BIDDING THOUGH NO RIVAL BIDDER HAS FORMALLY SURFACED YET MANY ON WALL STREET ARE ANTICIPATING A FULLSCALE WAR FOR CONTROL OF PARAMOUNT AND ITS RICH ENTERTAINMENT AND MEDIA ASSETS DESPITE PARAMOUNT'S FIRM POSITION THAT IT INTENDS TO COMPLETE THE VIACOM MERGER INVESTMENT BANKERS AND INDUSTRY EXECUTIVES SAID A NUMBER OF OTHER CABLE TELEPHONE AND ENTERTAINMENT CONCERNS ARE ALSO CIRCLING THE BATTLEFIELD LOOKING FOR A WAY TO GET INTO THE ACTION EITHER WITH A BID OF THEIR OWN OR AN OFFER TO BUY SOME ASSETS OF PARAMOUNT SUCH A S ITS PUBLISHING OPERATIONS SHOULD A RIVAL BID SUCCEED ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION LIBERTY AND COMCAST HAVE AGREED TO PURCHASE 1 BILLION IN CONVERTIBLE SECURITIES FROM QVC AT ROUGHLY 60 EACH OR QVC'S CURRENT STOCK PRICE THE SHARES WOULD BE CONVERTIBLE TO COMMON STOCK ONLY WHEN QVC SHARES REACHED A PRICE OF 100 THE AIM IS TO SEND A MESSAGE TO WALL STREET THAT LIBERTY AND COMCAST BELIEVE QVC BY ACQUIRING PARAMOUNT CAN CREATE AN ENTERTAINMENT GIANT THAT WILL SOAR IN VALUE UNDER TERMS OF VIACOM'S AGREEMENT HOLDERS OF PARAMOUNT'S 1185 MILLION SHARES WOULD RECEIVE A PACKAGE OF VIACOM STOCK AND 910 A SHARE IN CASH FOR EACH OF THEIR SHARES THE CASH PORTION WOULD TOTAL ABOUT 1 BILLION QVC IS EXPECTED TO OFFER A LARGER AMOUNT OF CASH AS AN INDUCEMENT IN ITS BID QVC SHARES FELL 1 APIECE FRIDAY TO 5950 IN NATIONAL OVERTHECOUNTER TRADING BUT THE STOCK HAS TRADED AS HIGH AS 73 THIS YEAR SINCE THE VIACOM OFFER WAS ANNOUNCED PARAMOUNT SHARES HAVE INCREASED IN VALUE WHILE VIACOM'S STOCK HAS DRIFTED DOWNWARD THE VIACOM OFFER VALUED AT 6914 PER PARAMOUNT SHARE THE DAY IT WAS ANNOUNCED IS CURRENTLY VALUED AT 6369 A SHARE DRIVEN BY NEWS OF THE POSSIBLE TURNER BID PARAMOUNT SHARES SURGED FRIDAY BY 350 EACH TO 6850 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING WHICH IS ABOVE THE SLUMPING VIACOM OFFER VIACOM SHARES FELL IN AMERICAN STOCK EXCHANGE TRADING FRIDAY ITS CLASS A SHARES FELL 1125 TO 59875 WHILE ITS CLASS B SHARES DROPPED 875 CENTS TO 54 A SPOKESMAN FOR PARAMOUNT SAID THE MERGER WITH VIACOM IS A PERFECT BUSINESS FIT AND IS IN THE BEST INTEREST OF OUR SHAREHOLDERS IT WILL BE COMPLETED PARAMOUNT HAS SOME DEFENSES AIMED AT THWARTING RIVAL BIDS A NUMBER OF CLASS ACTIONS WERE FILED AGAINST PARAMOUNT IN DELAWARE CHANCERY COURT LAST WEEK ATTACKING AMONG OTHER THINGS PARAMOUNT'S LOCKUP AGREEMENT TO IMMEDIATELY ISSUE A BLOCK OF SHARES TO VIACOM SUMNER REDSTONE CHAIRMAN OF VIACOM CONTINUED TO EXPRESS CONFIDENCE THAT HIS BID FOR PARAMOUNT WILL GET THROUGH SAYING IT WOULD TAKE A NUCLEAR ATTACK TO STOP THIS DEAL WHEN ASKED IF HE IS PREPARED TO SWEETEN HIS BID IF NEED BE HE SAID HE HAS NO REASON TO THINK THAT WILL BE NECESSARY IT'S NOT A MATTER OF DISCUSSION AND HASN'T BEEN SUGGESTED BY PARAMOUNT HE SAID MR REDSTONE ADDED THAT VIACOM IS CONTINUING DISCUSSIONS WITH TWO TELEPHONE COMPANIES INTERESTED IN INVESTING IN VIACOM'S CABLE BUSINESS BUT IS LOOKING FOR AN INVESTOR IN THOSE BUSINESSES AND NOT A PARTNER IN ITS ACQUISITION OF PARAMOUNT BERTELSMANN BLOCKBUSTER AND TURNER BROADCASTING SYSTEM INC DECLINED TO COMMENT COX WAS NOT IMMEDIATELY AVAILABLE FOR COMMENT MR TURNER WHO OWNS 51 OF TURNER AND PREVIOUSLY HAD UNSUCCESSFULLY EXPLORED A MERGER WITH PARAMOUNT MET WITH QVC'S MR DILLER OVER THE WEEKEND ABOUT THE IDEA OF A JOINT BID PEOPLE CLOSE TO THE TWO SAID AND THEY AGREED TO PONDER THE PROSPECT ALLEN & CO WHICH REPRESENTS QVC IS ALSO EXPECTED TO MEET WITH MR TURNER'S REPRESENTATIVES AT MERRILL LYNCH EVEN SO QVC ULTIMATELY EXPECTS TO ACT ALONE A JOINT BID IS LONGSHOT STUFF SAID ONE PERSON CLOSE TO THE SITUATION THOUGH THERE MAY BE A WAY TO INVOLVE MR TURNER AT SOME POINT TURNER'S ENTRY WOULD COMPLICATE MATTERS CONSIDERABLY SINCE SOME OF HIS OTHER SHAREHOLDERS AND HIS BOARD ARE ALSO HOLDERS AND DIRECTORS OF QVC COMCAST AND LIBERTY FOR EXAMPLE CONTROL QVC ALONG WITH MR DILLER COMCAST IS ALSO A SHAREHOLDER OF TURNER AND HAS A SEAT ON ITS BOARD AND LIBERTY'S CHAIRMAN JOHN MALONE IS CHIEF EXECUTIVE OF TELECOMMUNICATIONS INC FROM WHICH LIBERTY WAS SPUN OFF TELECOMMUNICATIONS INC HAS A 23 STAKE IN TURNER MR MALONE COULD NOT BE REACHED FOR COMMENT AND A SPOKESMAN FOR TELECOMMUNICATIONS DECLINED TO COMMENT QVC COMCAST AND LIBERTY OFFICIALS ALSO DECLINED TO COMMENT BUT MR MALONE'S ROLE IN ANY RIVAL BIDS FOR PARAMOUNT IS EXPECTED TO COME UNDER ATTACK BY PARAMOUNT AND VIACOM ALTHOUGH MR MALONE AND THE ROBERTS FAMILY WHICH CONTROLS COMCAST AREN'T STANDING IN MR TURNER'S WAY THEY HAVE DECIDED TO PUT THEIR CASH BEHIND QVC EFFECTIVELY WITHHOLDING ANY SUPPORT FROM TURNER EACH COMPANY IS EXPECTED TO PUT IN 500 MILLION UNDER THE CONVERTIBLE SECURITIES PURCHASE PLAN SHOULD MR DILLER GO AHEAD WITH A BID COMPLICATING THINGS FURTHER IS TIME WARNER INC WHICH OWNS A 19 STAKE IN TURNER AND SUPPORTS MR TURNER'S PLAN TO EXPLORE A BID FOR PARAMOUNT TIME WARNER ALSO HAS A 9 STAKE IN QVC BUT HAS CONSIDERABLY LESS INFLUENCE THERE SINCE QVC IS CONTROLLED BY COMCAST LIBERTY AND MR DILLER TOP EXECUTIVES OF TIME WARNER WHICH WAS CREATED BY MERGING TIME INC AND WARNER COMMUNICATIONS INC AFTER TIME FENDED OFF A RIVAL HOSTILE BID FROM PARAMOUNT ARE SAID TO BE WATCHING PARAMOUNT'S PREDICAMENT WITH INTEREST MORE IMPORTANTLY THOUGH TURNER EXECUTIVES BELIEVE THAT BECAUSE OF ANTITRUST CONCERNS THEY CAN'T ACQUIRE PARAMOUNT WHILE TIME WARNER REMAINS A MAJOR SHAREHOLDER OF TURNER TIME WARNER OWNS WARNER BROS MOVIE STUDIO A MAJOR RIVAL TO PARAMOUNT TIME WARNER HAS LONG SAID IT WANTS TO MONETIZE ITS TURNER STAKE VALUED AT ABOUT 14 BILLION AND HAS BEEN UNSUCCESSFUL IN TALKS WITH TURNER ABOUT HOW TO UNRAVEL THEIR OWNERSHIP SITUATION A SUCCESSFUL BID FOR PARAMOUNT BY TURNER COULD GIVE TIME WARNER THE PERFECT WAY TO SHED ITS TURNER STAKE ON A TAXFREE BASIS POSSIBLY IN EXCHANGE FOR SOME PARAMOUNT OR TURNER ASSETS TIME WARNER DECLINED TO COMMENT TURNER BROADCASTING CURRENTLY LACKS THE CASH TO MAKE A BID FOR PARAMOUNT ALTHOUGH MERRILL LYNCH IS TAKING THE POSITION THAT TURNER STOCK IS A MORE APPEALING TAKEOVER CURRENCY THAN QVC'S OR VIACOM'S ACCORDING TO ONE PERSON INVOLVED IN THE SITUATION WITH 1992 REVENUE OF 18 BILLION TURNER BROADCASTING IS ROUGHLY EQUAL IN SIZE TO VIACOM WHICH HAS 19 BILLION IN SALES TURNER LIKE VIACOM IS A BIG FORCE IN CABLE PROGRAMMING WITH ITS CABLE NEWS NETWORK TNT AND TBS CHANNELS BUT ALSO LIKE VIACOM LACKS A MAJOR HOLLYWOOD PRODUCTION OPERATION MR TURNER MEANWHILE TOLD HIS BOARD LAST WEEK THAT HE WOULD LIKE TO FINANCE THE TRANSACTION LARGELY WITH NEWLY ISSUED STOCK PEOPLE FAMILIAR WITH THE SITUATION SAID MR TURNER IS ALREADY ISSUING ABOUT 21 MILLION NEW SHARES TO ACQUIRE CASTLE ROCK ENTERTAINMENT AND NEW LINE CINEMA IN A TRANSACTION VALUED AT NEARLY 800 MILLION WHICH IS EXPECTED TO CLOSE IN THE NEXT SIX MONTHS TURNER EXECUTIVES SAID THERE IS NO INDICATION AT THIS POINT THAT THOSE TRANSACTIONS WON'T BE COMPLETED THE COMPANY CURRENTLY HAS ABOUT 262 MILLION SHARES OUTSTANDING TURNER SHARES FELL 625 CENTS APIECE TO 2575 IN AMERICAN STOCK EXCHANGE TRADING FRIDAY 9309280144 930928 RETAILING BATTLE LOOMS FOR AFFLUENT HOME SHOPPERS BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL IN A BID TO MUSCLE IN ON ONE OF THE CABLE INDUSTRY'S HOTTEST AND FASTESTGROWING BUSINESSES TIME WARNER INC PLANS TO TEAM UP WITH CATALOG POWERHOUSE SPIEGEL INC TO LAUNCH TWO CABLETV SHOPPING CHANNELS OFFERING UPSCALE NAMEBRAND MERCHANDISE THE ALLIANCE BETWEEN SPIEGEL THE COUNTRY'S SECONDLARGEST CATALOG COMPANY AND CABLE GIANT TIME WARNER BREAKS NEW GROUND IT MARKS TIME WARNER'S FIRST FORAY INTO THE HOMESHOPPING FIELD AND PROVIDES IT WITH ITS OWN HOMESHOPPING PROGRAMMING TO RUN ON ITS VARIOUS CABLE SYSTEMS THE MOVE COULD LEAD TO A CLASH BETWEEN THE NATION'S TWO LARGEST CABLETV COMPANIES NO 2 TIME WARNER AND NO 1 TELECOMMUNICATIONS INC OVER ONE OF THE FASTEST GROWING CATEGORIES OF CABLETV PROGRAMMING LIBERTY MEDIA INC A SPINOFF OF TELECOMMUNICATIONS CONTROLS OR PARTLY CONTROLS THE TWO TELEVISION HOMESHOPPING GIANTS THAT MAKE UP MOST OF THE 25 BILLION INDUSTRY NOW QVC NETWORK INC AND HOME SHOPPING NETWORK INC AND THE TWO NOW ARE WEIGHING A PROPOSED 14 BILLION STOCK MERGER THE PRESENCE OF TIME WARNER WILL SHARPLY RATCHET UP THE LEVEL OF COMPETITION IN THE HOMESHOPPING INDUSTRY WHICH IS EXPECTED TO SOAR TO 100 BILLION BY THE END OF THE DECADE AND MANY CABLEINDUSTRY OBSERVERS BELIEVE IT IS JUST AN EARLY SALVO AS MORE HOMESHOPPING SERVICES JOIN THE FRAY IN THE RACE TO WIN MORE AFFLUENT CUSTOMERS UNTIL NOW MOST HOMESHOPPING PROGRAMS HAVE CONCENTRATED ON MARKETING RELATIVELY LOWBROW FARE SUCH AS CUBIC ZIRCONIUM JEWELRY BUT THE SPIEGELTIME WARNER CHANNELS INTEND TO OFFER NATIONAL BRAND MERCHANDISE OF THE SORT FOUND IN SPIEGEL'S CATALOG SUCH AS EXPENSIVE WOMEN'S CLOTHING BY DESIGNER DONNA KARAN AND RETAILER ANNTAYLOR THE COMPANIES HOPE TO LAUNCH THE CHANNELS IN 1994 THE NEW CHANNELS WILL COMPETE HEADON WITH A POTENTIALLY FORMIDABLE RIVAL QVC NETWORK'S RECENTLY ANNOUNCED Q2 SHOPPING CHANNEL WHICH ALSO PLANS TO TARGET UPSCALE CONSUMERS AND WHICH DESCRIBES ITSELF A CROSS BETWEEN A LIFESTYLE MAGAZINE AND A SPECIALTY STORE TIME WARNER CURRENTLY OWNS ABOUT 9 OF QVC BUT HAS SAID IT MIGHT CONSIDER SELLING OR OTHERWISE MONETIZING ITS STAKE IN THE EARLY DAYS OF HOME SHOPPING IT WAS STRICTLY BARGAINRAMA AND CLOSEOUT MERCHANDISE NOW IT'S TIME FOR THE UPSCALE CHANNELS SAYS LARRY GERBRANDT AN ANALYST WITH PAUL KAGAN ASSO CIATES INC THE SECOND COMING OF HOME SHOPPING IS COMING AND IT'S GOING TO BE A MORE UPSCALE MULTIPLE CHANNEL VERSION WALL STREET OBVIOUSLY LIKES THE NEW APPROACH IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY SPIEGEL ROSE 5 OR 137 TO 4150 TIME WARNER ROSE 25 CENTS TO 42375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING OTHER RETAILERS HAVE ALREADY PLUNGED INTO HOME SHOPPING RH MACY & CO FOR EXAMPLE RECENTLY ANNOUNCED PLANS TO LAUNCH A 24HOUR CHANNEL WITH HOME SHOPPING NETWORK FOR NOW HOME SHOPPING AND QVC CLEARLY HAVE A RUNNING START QVC BASED IN WEST CHESTER PA CURRENTLY REACHES ABOUT 47 MILLION HOMES THROUGH CABLE AND SATELLITE ITS CLOUT WILL GROW EVEN STRONGER IF IT CAN COMPLETE THE MERGER WITH HOME SHOPPING NETWORK WHICH REACHES 27 MILLION HOMES THROUGH CABLE THE SPIEGELTIME WARNER CHANNELS WILL BEGIN FAR MORE MODESTLY ON TIME WARNER CABLE'S 71 MILLION HOMES THOUGH TIME WARNER SAID YESTERDAY IT IS NEGOTIATING WITH ADDITIONAL OPERATORS E THAYER BIGELOW PRESIDENT OF TIME WARNER'S CABLE PROGRAMMING UNIT SAYS HE DOESN'T CONSIDER THE SPIEGEL VENTURE TO BE IN DIRECT COMPETITION WITH QVC FROM WHAT'S ON QVC RIGHT NOW WE WILL BE TOTALLY DIFFERENT HE SAYS THEY HAVE GIVEN TIME TO DESIGNERS BUT IT'S A SMALL PERCENTAGE OF WHAT THEY ARE AIRING ONE OF THE TWO SPIEGELTIME WARNER CHANNELS CALLED THE CATALOG CHANNEL WILL KEEP TO THE 24HOUR SELLING DRILL PIONEERED BY HOME SHOPPING AND QVC BUT INSTEAD OF INEXPENSIVE JEWELRY AND POLYESTER SWEATERS IT WILL FEATURE MERCHANDISE FROM SPIEGEL'S 500PAGE CATALOG AND FROM ITS EDDIE BAUER SPORTSWEAR CATALOG TIME WARNER AND SPIEGEL ARE ALSO IN DISCUSSION WITH A GROUP OF UPSCALE CATALOG COMPANIES THAT WOULD SELL THEIR GOODS DURING CERTAIN TIME SLOTS THOUGH TIME WARNER DECLINED TO ELABORATE THE GROUP IS BELIEVED TO INCLUDE J CREW AND TALBOTS THE SECOND SPEIGELTIME WARNER CHANNEL WILL BE INTERACTIVE AND ITS DEBUT IS EXPECTED TO BE ON A NEW TIME WARNER INTERACTIVE TV SERVICE SET TO BEGIN IN ORLANDO FLA IN APRIL DESCRIBED IN A COMPANY STATEMENT AS A VIDEO SHOPPING MALL IT WILL ALLOW CABLE VIEWERS TO ENTER CATALOG STORES TO VIEW MERCHANDISE IN FULLMOTION VIDEO AND TO MAKE PURCHASES ON DEMAND YET SUCCEEDING IN AN INCREASINGLY CROWDED FIELD WILL BE A CHALLENGE THE TARGET AUDIENCE OF THE SPIEGELTIME WARNER CHANNELS WILL BE THE CORE OF THE COUCHSHOPPING WORLD WOMEN 25 TO 55 YEARS OLD NO ONE YET KNOWS WHETHER ENOUGH OF THESE WOMEN WILL WANT TO MAKE MAJOR PURCHASES SIMPLY BY WATCHING TELEVISION AND THE COMPETITION IS FIERCE NOT JUST FROM THE MAJOR PLAYERS BUT FROM A NUMBER OF SMALLER ONES FINGERHUT COS FOR EXAMPLE THE MINNETONKA MINN GIFT AND HOUSEWARES CATALOG COMPANY HAS ALREADY TEAMED UP WITH CAPITAL CITIES/ABC INC TO PRODUCE SEVERAL CABLETV SHOPPING PROGRAMS SET TO AIR LATER THIS YEAR MYRON E ULLMAN III MACY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BELIEVES THAT UPSCALE CONSUMERS' APPETITES ARE BIG ENOUGH TO FUEL THE GROWING FIELD HIS NEW YORKBASED RETAILER WILL TRY TO CREATE A CONTEMPORARY DEPARTMENT STORE IN SOMEONE'S LIVING ROOM WHICH WILL BE DIFFERENT THAN THE SPIEGELTIME WARNER SERIES OF CATALOGS HE SAYS ADDING THERE WILL BE A MARKET FOR THAT AS WELL WE AREN'T FRIGHTENED OFF BY COMPETITION GREGORY A PATTERSON IN CHICAGO CONTRIBUTED TO THIS ARTICLE 9309280143 930928 BUSINESS BRIEF ST MARY LAND & EXPLORATION CO OIL AND GAS CONCERN EXPECTS 29 RISE IN 3RDQUARTER NET ST MARY LAND & EXPLORATION CO DENVER EXPECTS TO REPORT THAT THIRDQUARTER NET INCOME ROSE ABOUT 29 THOMAS E CONGDON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID HE AGREED WITH ANALYSTS' ESTIMATES THAT THE COMPANY WILL HAVE THIRDQUARTER EARNINGS OF ROUGHLY 18 MILLION OR 21 CENTS A SHARE COMPARED WITH 14 MILLION OR 20 CENTS A SHARE A YEAR EARLIER PERSHARE FIGURES FOR THE OIL AND NATURALGAS COMPANY REFLECT AN INCREASE IN COMMON SHARES TO ABOUT 88 MILLION FROM 72 MILLION A YEAR AGO MR CONGDON ATTRIBUTED THE EARNINGS INCREASE IN PART TO HIGHER GAS PRICES WHICH OFFSET A DECLINE IN OIL PRICES REVENUE ROSE 46 TO 104 MILLION FROM 71 MILLION ACCORDING TO ONE ANALYST AND MR CONGDON AGREED 9309280142 930928 LAW LEGAL BEAT ADVOCATES OF IMMIGRANTS' RIGHTS MAY SUE OVER CLINTON HEALTH PLAN BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL IMMIGRANTS' RIGHTS ADVOCATES SAY THEY WILL CHALLENGE THE CLINTON HEALTH PLAN IN COURT IF THE FINAL VERSION FAILS TO PROVIDE MEDICAL BENEFITS TO THE NATION'S 32 MILLION ILLEGAL IMMIGRANTS THE CURRENT DRAFT OF THE PROPOSAL EXCLUDES THESE PEOPLE IN CONTRAST THE PLAN DOES COVER CITIZENS OF FOREIGN COUNTRIES WHO ARE LEGALLY RESIDING IN THE US THAT DISTINCTION COULD VIOLATE EQUALPROTECTION RIGHTS BY ILLEGALLY DISCRIMINATING AMONG DIFFERENT GROUPS OF IMMIGRANTS SOME LAWYERS SAY ANY LAWSUITS ON THIS ISSUE WOULD BRING RENEWED JUDICIAL ATTENTION TO THE LONGSTANDING LEGAL QUESTION OF WHETHER HEALTH CARE IS A FUNDAMENTAL RIGHT PROTECTED BY THE CONSTITUTION IF HEALTH CARE WAS DESIGNATED AS SUCH A RIGHT THE GOVERNMENT WOULD HAVE AN EXTREMELY DIFFICULT TIME JUSTIFYING ITS DENIAL LAWYERS FOR IMMIGRANTS MIGHT ALSO ARGUE THAT ILLEGAL ALIENS AS A GROUP ARE PARTICULARLY VULNERABLE TO DISCRIMINATION AND THEREFORE DESERVE HIGHERTHANUSUAL CONSTITUTIONAL PROTECTIONS COURTS APPLY FAR GREATER SCRUTINY TO LAWS THAT DISPROPORTIONATELY AFFECT POLITICALLY VULNERABLE GROUPS OR IMPEDE PEOPLE'S FUNDAMENTAL RIGHTS SO FAR THE SUPREME COURT HAS DECLINED TO ADD MEDICAL TREATMENT TO ITS LIST OF FUNDAMENTAL RIGHTS WHICH INCLUDE THE RIGHT TO VOTE TRAVEL USE THE NATION'S COURTS AND PRESERVE ONE'S PRIVACY HOWEVER THE COURT HAS RULED THAT PEOPLE HAVE BROAD RIGHTS TO DECLINE TREATMENT WHILE THE CLINTON PLAN DOESN'T OFFER ILLEGAL IMMIGRANTS THE HEALTH BENEFITS GUARANTEED TO OTHER AMERICANS IT DOES PROVIDE THEM SOME PROTECTIONS EMPLOYERS FOR EXAMPLE WOULD BE REQUIRED TO PAY HEALTH INSURANCE PREMIUMS FOR ALL OF THEIR EMPLOYEES REGARDLESS OF IMMIGRATION STATUS IN ADDITION THE PLAN WOULDN'T CHANGE CURRENT STATE AND FEDERAL LAWS THAT REQUIRE HOSPITALS TO PROVIDE EMERGENCY CARE TO ANYONE WHO NEEDS IT LEGAL SPECIALISTS SAY THE SUPREME COURT REMAINS UNLIKELY TO EMBRACE HEALTH CARE FULLY AS A FUNDAMENTAL RIGHT BUT THEY SAY THE COURT MIGHT BE PERSUADED TO REQUIRE THE PLAN TO COVER ILLEGAL ALIENS NONETHELESS IF SO THE COURT'S REASONING MIGHT PROVIDE A BASIS FOR MUCH STRONGER HEALTHCARE RIGHTS FOR ALL AMERICANS THE COURT WOULD LIKELY BASE ANY SUCH DECISION ON A 1982 DECISION MANDATING PUBLIC EDUCATION FOR CHILDREN OF UNDOCUMENTED IMMIGRANTS LARS SAY IN THAT CASE PLYER VS DOE THE COURT STRUCK DOWN A TEXAS STATUTE THAT DENIED THE USE OF LOCAL SCHOOL DISTRICTS' FUNDS FOR THE EDUCATION OF CHILDREN OF ILLEGAL ALIENS THE SUPREME COURT IN PLYER DIDN'T DECLARE EDUCATION TO BE A FUNDAMENTAL RIGHT AND IT DIDN'T STATE EXPLICITLY THAT CHILDREN OF ILLEGAL IMMIGRANTS DESERVED A HIGH LEVEL OF PROTECTION BUT THE COURT CONDUCTED THE KIND OF ANALYSIS THAT SUGGESTED IT WAS VERY CLOSE TO DOING SO ACCORDING TO FRANK MICHELMAN A CONSTITUTIONALLAW SPECIALIST AT HARVARD LAW SCHOOL BECAUSE ACCESS TO HEALTH CARE IS OF COMPARABLE IMPORTANCE TO EDUCATION MR MICHELMAN SAID THIS SITUATION IS EXACTLY PARALLEL WITH THE ONE THAT YOU HAVE IN PLYER A LAWSUIT AIMED AT BOOSTING THE HEALTHCARE RIGHTS OF ILLEGAL IMMIGRANTS WOULD BE AIDED BY THE POLITICS OF THE CURRENT HEALTHREFORM DEBATE LAWYERS SAY FOR STARTERS PRESIDENT CLINTON AND OTHER FEDERAL OFFICIALS HAVE REPEATEDLY EMPHASIZED THAT PEOPLE HAVE EXTENSIVE RIGHTS TO MEDICAL CARE IN THE PRESIDENT'S SPEECH TO CONGRESS LAST WEEK FOR EXAMPLE HE SPOKE OF THE PRINCIPLE OF PROVIDING UNIVERSAL COMPREHENSIVE CARE AND THE ADMINISTRATION PLANS TO ISSUE AMERICANS A HEALTH SECURITY CARD THAT STATES ON THE BACK THAT IT GUARANTEES YOU A COMPREHENSIVE PACKAGE OF BENEFITS THAT CAN NEVER BE TAKEN AWAY HEALTH CARE IS BEING CONSIDERED CLEARLY AT THE POLITICAL LEVEL TO BE A FUNDAMENTAL RIGHT SAID ARTHUR HELTON DIRECTOR OF THE REFUGEE PROGRAM OF THE LAWYERS COMMITTEE FOR HUMAN RIGHTS IN NEW YORK IT WON'T BE LONG BEFORE THAT QUESTION IS ASKED IN THE JUDICIAL CONTEXT IN ADDITION THE CLINTON PLAN ESTABLISHES FOR THE FIRST TIME A COMPREHENSIVE FEDERAL HEALTH SYSTEM THAT BROAD EXERCISE OF GOVERNMENT POWER LAWYERS SAY CREATES AN OPPORTUNITY FOR CONSTITUTIONAL CHALLENGES THAT PREVIOUSLY HAVEN'T BEEN POSSIBLE WITH HEALTH CARE PROVIDED THROUGH AN AMALGAM OF PRIVATE STATE AND FEDERAL SOURCES IN THE MEANTIME GROUPS HOPE TO PREEMPT A COURT FIGHT BY URGING CONGRESS TO INCLUDE ILLEGAL IMMIGRANTS IN THE FINAL PLAN INCLUDING THEM WILL HELP REDUCE HEALTH COSTS IN THE LONG RUN THE GROUPS SAY BECAUSE PREVENTIVE CARE IS CHEAPER THAN THE EMERGENCY SERVICES MANY IMMIGRANTS MUST NOW TURN TO WHEN THEY ARE SICK BUT SUCH ARGUMENTS FACE STIFF CHALLENGES FROM LAWMAKERS CONCERNED THAT COVERING ILLEGAL ALIENS MIGHT ENTICE MORE SUCH PEOPLE INTO THE COUNTRY AND THAT THE PRESIDENT'S CURRENT PROPOSALS ALREADY MAY BE TOO EXPENSIVE THE ADMINISTRATION CONSIDERED INCLUDING COVERAGE FOR UNDOCUMENTED IMMIGRANTS BUT ISSUES OF COST AND CONCERNS ABOUT PROVIDING AN IMMIGRANT MAGNET WERE BOTH WORRIES SAID KEVIN ANDERSON A WHITE HOUSE SPOKESMAN MR ANDERSON SAID THE PLAN NONETHELESS SHOULD IMPROVE THE QUALITY OF CARE ILLEGAL ALIENS RECEIVE IN PART BECAUSE IT PROVIDES INCREASED FUNDING FOR COMMUNITY AND MIGRANT HEALTH CENTERS IN ADDITION MR ANDERSON SAID BY PROVIDING UNIVERSAL HEALTH INSURANCE THE PLAN WILL EASE THE BURDEN ON CLINICS THAT CURRENTLY SERVE BOTH ILLEGAL IMMIGRANTS AND CITIZENS WHO ARE UNINSURED HALT A LEGALREFORM GROUP IN WASHINGTON HAS OPENED A STORE THAT WILL PREPARE LEGAL DOCUMENTS FOR CUSTOMERS WITHOUT THE HELP OF A LAWYER THE MOVE PUTS HALT IN THE CENTER OF A BATTLE THAT HAS HEATED UP IN RECENT YEARS BETWEEN LAWYERS AND NONLAWYERS IN THE LEGAL BUSINESS MANY COMPANIES INCLUDING DOCUMENTPREPARATION SERVICES HAVE BEEN TARGETED FOR ALLEGEDLY PRACTICING LAW WITHOUT A LICENSE LAWYERS MAINTAIN THAT IN TELLING PEOPLE HOW TO FILL OUT LEGAL FORMS THESE BUSINESSES OFTEN END UP GIVING LEGAL ADVICE WHICH THEY AREN'T AUTHORIZED TO DO WILLIAM FRY HALT'S EXECUTIVE DIRECTOR SAID THE GROUP HOPES ITS LAW STORE WILL HELP DEMONSTRATE THAT PEOPLE CAN GET BY WITHOUT LAWYERS IN SUCH LEGAL AREAS AS PERSONAL BANKRUPTCY FILINGS AND NOCONTEST DIVORCES THE STORE WHICH WILL SERVE THE WASHINGTON DC METROPOLITAN AREA WILL CHARGE 190 TO PREPARE DOCUMENTS FOR AN UNCONTESTED DIVORCE FAR LESS THAN A LAW FIRM WOULD CHARGE MR FRY SAID LAWYERS HAVE CHARGED NONLAWYERS WITH UNAUTHORIZED PRACTICE OF LAW FOR DOING THESE THINGS AND THERE'S A RISK WE WILL BE CHARGED SAID MR FRY WE THINK WHAT WE'RE DOING IS LEGAL WE AREN'T GOING TO GIVE LEGAL ADVICE 9309280141 930928 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED SEPT 24 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ADAMS COUNTY COLO WILL REDEEM ON OCT 15 1993 350000 OF ITS FIRST MORTGAGE REVENUE BONDS FIRST INTERSTATE BANK OF DENVER IS TRUSTEE QUINCY ILL WILL REDEEM ON NOV 1 1993 ITS 1978 SERIES A SINGLE FAMILY MORTGAGE REVENUE BONDS DUE NOV 1 1994 1998 AND 2010 BOATMEN'S TRUST CO ST LOUIS MO IS PAYING AGENT 9309280140 930928 WHO'S NEWS AMERICAN OIL & GAS CORP AMERICAN OIL & GAS CORP HOUSTON DANIEL L DIENSTBIER WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT THIS NATURAL GAS COMPANY EFFECTIVE NOV 1 MR DIENSTBIER 53 YEARS OLD WAS ALSO NAMED TO THE COMPANY'S BOARD INCREASING THE NUMBER OF DIRECTORS TO EIGHT MR DIENSTBIER WAS MOST RECENTLY PRESIDENT OF ARKLA CORP 9309280139 930928 RAWSTEEL OUTPUT FELL IN MOST RECENT WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 19 LAST WEEK TO 1798000 TONS FROM 1833000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 7 FROM THE 1680000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 857 OF ITS CAPABILITY LAST WEEK COMPARED WITH 874 THE PREVIOUS WEEK AND 778 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9309280138 930928 JOY TECHNOLOGIES UNION PACT PITTSBURGH JOY TECHNOLOGIES INC SAID THE UNITED STEEL WORKERS RATIFIED A THREEYEAR LABOR PACT COVERING THE JOY/GREEN FAN DIVISION IN NEW PHILADELPHIA OHIO THE CONTRACT IS RETROACTIVE TO SEPT 1 TERMS COULDN'T BE LEARNED JOY OFFICIALS DIDN'T RETURN A PHONE CALL AND UNION OFFICIALS WERE UNAVAILABLE TO COMMENT JOY MAKES CAPITAL EQUIPMENT FOR UNDERGROUND MINING AIRPOLLUTION CONTROL AND OTHER INDUSTRIAL APPLICATIONS 9309280137 930928 BUSINESS BRIEFS DIAL CORP'S GES EXPOSITION SERVICES INC UNIT SIGNED AN AGREEMENT TO ACQUIRE CLOSELY HELD ANDREWS BARTLETT & ASSOCIATES INC TERMS WEREN'T DISCLOSED PRAXAIR INC AN INDUSTRIALGAS CONCERN SAID ITS WHITE MARTINS UNIT PAID 25 MILLION FOR TWO AIRSEPARATION PLANTS IN BRAZIL THAT HAD BEEN OPERATED BY STEELMAKER ACOMINAS VALHI INC APPROVED A 33 MILLION EXPANSION OF THE CLONMEL IRELAND FIBERBOARD PLANT OF ITS FOREST PRODUCTS UNIT MEDITE CORP THE EUROPEAN INVESTMENT BANK AND THE BANK OF IRELAND WILL PROVIDE FINANCING US LONG DISTANCE CORP SIGNED A TWOYEAR AGREEMENT WITH CLOSELY HELD GFIVE CORP REDDING CALIF TO PROVIDE OPERATOR SERVICES FOR ABOUT 10000 PAY TELEPHONES IN CALIFORNIA THE AGREEMENT SHOULD PRODUCE MORE THAN 20 MILLION IN ANNUAL REVENUE PORTA SYSTEMS CORP SIGNED A CONTRACT WITH TELEKOMUNIKACJA POLSKA SA A POLISH TELECOMMUNICATIONS AUTHORITY FOR THE SALE OF A 69 MILLION LINETESTING SYSTEM FOR WARSAW FIRST FINANCIAL MANAGEMENT CORP AN INFORMATION SERVICES PROVIDER SIGNED A DEFINITIVE PACT TO BUY BROWNFORMAN ENTERPRISES THE MERCHANT CREDITCARD PROCESSING UNIT OF BROWNFORMAN CORP IN LOUISVILLE KY TERMS WEREN'T DISCLOSED 9309280136 930928 GE CAPITAL IN THAI VENTURE NEW YORK CONTINUING ITS EXPANSION IN ASIAN MARKETS GENERAL ELECTRIC CO'S GE CAPITAL CORP UNIT ENTERED INTO A JOINT VENTURE TO PROVIDE CONSUMER AND COMMERCIAL FINANCING IN THAILAND GE CAPITAL BASED IN STAMFORD CONN SAID IT SIGNED AN AGREEMENT WITH GENERAL FINANCE & SECURITIES CO AND THE GOVERNMENT SAVINGS BANK OF THAILAND THE NEW VENTURE NAMED GS CAPITAL CORP WAS FORMED WITH GENERAL FINANCE'S AUTOMOTIVE FINANCING BUSINESS GS CAPITAL WILL SERVICE GENERAL FINANCE'S EXISTING 165 MILLION AUTOMOTIVE FINANCING PORTFOLIO WHILE LOOKING FOR OPPORTUNITIES TO EXPAND INTO OTHER CONSUMER AND COMMERCIAL FINANCING BUSINESSES IN THE PASTS 12 MONTHS GE CAPITAL HAS EXPANDED ITS FINANCIAL SERVICES BUSINESS INTO INDIA SINGAPORE INDONESIA MALAYSIA AMONG OTHER COUNTRIES 9309280135 930928 BUSINESS BRIEF CYPRUS MINERALS CO HOLDERS TO MEET IN NOVEMBER FOR AMAX ACQUISITION VOTE CYPRUS MINERALS CO DENVER AND AMAX INC NEW YORK HAVE SET NOV 12 MEETINGS IN NEW YORK FOR SHAREHOLDERS TO VOTE ON THE COMPANIES' PROPOSED COMBINATION THE SECURITIES AND EXCHANGE COMMISSION DECLARED THE PROSPECTUS FOR CYPRUS'S STOCK PURCHASE OF AMAX EFFECTIVE FRIDAY IN THE ACQUISITION AMAX WILL SPIN OFF ITS ALUMAX ALUMINUM UNIT AND 28 OF THE STOCK OF AMAX GOLD INC TO AMAX SHAREHOLDERS AMAX SHAREHOLDERS ALSO WILL RECEIVE CYPRUS MINERALS STOCK FOR THEIR AMAX SHARES A SPOKESMAN FOR CYPRUS SAID THE COMPANIES ALSO MADE A PROPOSAL TO THE JUSTICE DEPARTMENT TO DIVEST SOME OF THEIR MOLYBDENUM MINING AND PROCESSING ASSETS IN RESPONSE TO THE DEPARTMENT'S ANTITRUST CONCERNS RECORD DATE FOR STOCKHOLDERS WHO WILL BE ABLE TO VOTE ON THE TRANSACTION IS OCT 4 9309280134 930928 TECHNOLOGY CRAY RESEARCH UNVEILS NEW SUPERCOMPUTER CLAIMS TOP SPEEDS EAGAN MINN CRAY RESEARCH INC FORMALLY UNVEILED ITS FIRST MASSIVELY PARALLEL SUPERCOMPUTER WHICH CARRIES A BASE PRICE OF 22 MILLION THE COMPANY CLAIMS THE LARGEST VERSIONS OF THE COMPUTER ARE THE WORLD'S FASTEST FOR MANY PURPOSES IN THE PAST CRAY HAS ONLY SOLD VECTOR SYSTEMS WITH AS MANY AS 16 POWERFUL PROCESSORS LINKED TOGETHER A VECTOR SYSTEM IS THE TRADITIONAL TYPE OF SUPERCOMPUTER THAT USES A FEW VERY POWERFUL PROCESSORS A MASSIVELY PARALLEL MACHINE LINKS MANY SMALL PROCESSORS TOGETHER IN A SINGLE SYSTEM IT'S THE NUMBER OF PROCESSORS USED THAT DISTINGUISHES THE TWO TYPES OF COMPUTERS THE NEW MASSIVELY PARALLEL T3D INCLUDES FROM 32 TO 1024 ALPHA MICROPROCESSORS MADE BY DIGITAL EQUIPMENT CORP CRAY WHICH MADE THE ANNOUNCEMENT IN WASHINGTON DC SAYS IT COULD BUILD A 2048MICROPROCESSOR VERSION IF ONE WAS ORDERED THE 1024PROCESSOR VERSION COSTS 31 MILLION THE T3D IS DESIGNED TO WORK ONLY WITH A CRAY VECTOR SYSTEM AND ANALYSTS SAID MOST WILL PROBABLY BE SOLD TO EXISTING CRAY CUSTOMERS FOR NEW CUSTOMERS CRAY OFFERS A COMBINATION OF A BIG VECTOR PROCESSOR AND 128 ALPHA PROCESSORS IN A SINGLE BOX FOR 7 MILLION CRAY DID A REAL GOOD JOB OF DESIGNING A SUPERCOMPUTER THAT BEST LEVERAGES ITS OWN ARCHITECTURE SAID GARY SMABY PRESIDENT OF SMABY GROUP A MINNEAPOLIS MARKET RESEARCH FIRM HOWEVER HE SAID MASSIVELY PARALLEL SUPERCOMPUTERS MADE BY NUMEROUS ENTREPRENEURIAL COMPANIES WILL REMAIN MUCH CHEAPER THAN THE CRAY SYSTEMS HE PREDICTED THEY WILL BE ABLE TO CLAIM HIGHER SPEEDS ON AT LEAST SOME TESTS CRAY SAID IT HAS NINE CUSTOMERS FOR THE SYSTEM ALREADY INCLUDING SEVERAL UNIVERSITIES AND RESEARCH CENTERS AN OIL COMPANY AND A JAPANESE MANUFACTURER WHICH IT DECLINED TO NAME IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE CRAY CLOSED AT 2475 UP 875 CENTS 9309280133 930928 HOT CANADA MARKET HAS ITS DAY IN THE SUN BY TAMSIN CARLISLE STAFF REPORTER OF THE WALL STREET JOURNAL CALGARY ALBERTA ONE OF THE HOTTEST EMERGING STOCK MARKETS ISN'T IN LATIN AMERICA OR ASIA BUT ON THE CANADIAN PRAIRIES THE VALUE OF SHARES TRADED ON CALGARY'S ALBERTA STOCK EXCHANGE SO FAR THIS YEAR IS MORE THAN DOUBLE THE YEAR EARLIER VOLUME HAS MORE THAN TRIPLED AUGUST'S INITIAL PUBLIC STOCK OFFERINGS RAISED 36 TIMES AS MUCH MONEY AS A YEAR BEFORE BEHIND THIS IMPRESSIVE GROWTH RATE ARE SOME TINY NUMBERS THE AUGUST IPOS RAISED JUST 119 MILLION CANADIAN DOLLARS US9 MILLION THE VALUE OF AUGUST TRADING IN ALBERTA WAS ONLY C191 MILLION US1447 MILLION AGAINST C12 BILLION ON THE TORONTO STOCK EXCHANGE WHICH IS CANADA'S BIGGEST STILL IT'S A BIG IMPROVEMENT FOR THE 37 MEMBER FIRMS OF THE ALBERTA EXCHANGE IT'S OUR DAY IN THE SUN I'VE BEEN FOLLOWING THIS BUSINESS FOR A QUARTER OF A CENTURY AND I'VE NEVER SEEN ANYTHING LIKE WHAT WE'VE SEEN IN THE PAST 150 DAYS SAYS ROB PETERS PRESIDENT OF PETERS & CO THE CALGARY BROKERAGE HOUSE SPECIALIZES IN UNDERWRITING SMALL EQUITY ISSUES IN THE C1 MILLIONTOC10 MILLION RANGE FOR EMERGING CANADIAN OIL AND GAS CONCERNS MUCH OF THE ACTIVITY HAS BEEN DRIVEN BY THE 24 RUNUP IN NORTH AMERICAN NATURALGAS PRICES DURING THE PAST YEAR WHICH SPARKED A FEEDING FRENZY AMONG INVESTORS WITH AN APPETITE FOR ENERGY STOCKS THE COMPANIES THAT BENEFITED MOST INCLUDE SMALL ALBERTA ENERGY PRODUCERS WITH LOW COSTS OF FINDING OIL AND GAS MANY ARE LISTED ONLY ON THE ALBERTA EXCHANGE WHICH SPECIFICALLY COURTS EMERGING COMPANIES IN INDUSTRIES OF REGIONAL IMPORTANCE PREEMINENTLY THE OIL AND GAS INDUSTRY AS OF AUG 31 THE ALBERTA EXCHANGE LISTED 772 ISSUES WITH A TOTAL MARKET CAPITALIZATION OF C95 BILLION IT ADDED 51 NEW LISTINGS IN THE FIRST EIGHT MONTHS OF 1993 AGAINST 23 DURING THE YEAREARLIER PERIOD THE NEWLY LISTED COMPANIES TEND TO BE STARTUP BUSINESSES THAT ACQUIRED A FEW OIL AND GAS PROPERTIES IN THE RECENTLY GLUTTED WESTERN CANADIAN MARKET THEY WANT TO RAISE MONEY TO EXPLORE THEM AND WITH LUCK PUT THEM INTO PRODUCTION SOME ALBERTA STARTUPS HAVE GROWN INTO SUCCESSFUL OIL AND GAS PRODUCERS WHICH LIST THEIR SHARES ON LARGER EXCHANGES AND ATTRACT INSTITUTIONAL INVESTORS PINNACLE RESOURCES LTD ISSUED ITS FIRST STOCK ON THE ALBERTA EXCHANGE AT C1 A SHARE IN 1986 THE YEAR OIL PRICES NOSEDIVED TO AROUND 10 A BARREL FROM MORE THAN 25 IT TOOK ADVANTAGE OF THE ENSUING BUYER'S MARKET FOR OIL AND GAS PROPERTIES TO ACQUIRE AND DEVELOP LOWRISK ALBERTA PROSPECTS CURRENTLY ITS SHARES ARE TRADING ABOVE C20 ON THE TORONTO STOCK EXCHANGE BUT ALBERTA ALSO IS KNOWN PERHAPS NOTORIOUSLY FOR ITS CLAIM TO BE THE WORLD'S ONLY STOCK EXCHANGE THAT LISTS BLIND POOLS WHICH ARE COMPANIES WITH NO FORMAL BUSINESS PLANS AND FEW ASSETS ASIDE FROM THEIR MANAGEMENTS' TALENTS A FEW OF THESE MANAGERS HAVE SHOWN A TALENT FOR SPENDING SHAREHOLDERS' MONEY ON SUCH THINGS AS VACATIONS AND PERSONAL LUXURIES ONE BLIND POOL BOUGHT THE PRIVATE RESEARCH COMPANY OF A SELFPROCLAIMED SCIENTIST WHO HAD BEEN CONVICTED OF FORGERY AND TRANSPORTING STOLEN PROPERTY THE BLIND POOLS ALSO MAKE CONVENIENT SHELLS FOR CONCERNS THAT WANT A LISTING WITHOUT THE EXPENSE OR DISCLOSURE OF AN INITIAL PUBLIC OFFERING SOMETIMES THAT'S A GOOD THING FOR SHAREHOLDERS THE ALBERTA EXCHANGE'S PRESIDENT THOMAS CUMMING JUSTIFIES BLIND POOLS KNOWN EUPHEMISTICALLY HERE AS JUNIOR CAPITAL POOLS AS A WAY TO HELP FLEDGLING ENTERPRISES FIND SEED CAPITAL TO SEEK OUT AND DEVELOP LEGITIMATE BUSINESS OPPORTUNITIES HE SAYS ABOUT 75 OF COMPANIES THAT THE ALBERTA EXCHANGE FIRST LISTED AS BLIND POOLS ARE STILL IN BUSINESS AND THAT A SCORE OR SO ARE LISTED ON THE TORONTO EXCHANGE MR CUMMING SAYS THE ALBERTA EXCHANGE WILL LIST COMPANIES WITH ASSETS AS SMALL AS C500000 AND BLIND POOLS WITH AS LITTLE AS C200000 HE SAYS THE LOW THRESHOLDS PROVIDE AN INCUBATOR FOR TINY COMPANIES THAT MAY GROW AND LATER GRADUATE TO TORONTO OR TO A US EXCHANGE POCO PETROLEUMS LTD IS AN ALBERTA EXCHANGE STARTUP THAT GREW TO MORE THAN C200 MILLION A YEAR IN REVENUE AND NOW TRADES MOSTLY IN TORONTO JOHN FERGUSON PRESIDENT AND CHIEF FINANCIAL OFFICER SAYS ONE REASON THAT SMALL LOCAL ENERGY COMPANIES GO PUBLIC FIRST IN ALBERTA IS THAT THE LIKELIEST INVESTORS ARE LOCALS WHO ARE FAMILIAR WITH THE CANADIAN OIL PATCH MR CUMMING WANTS TO BROADEN THAT AUDIENCE AND HAS TRAVELED AS FAR AS PARIS AND ZURICH TO DRUM UP INSTITUTIONAL INTEREST SOME US FUND MANAGERS THINK HE IS SUCCEEDING AMERICAN INVESTORS ARE DISCOVERING CANADIAN JUNIOR OILS SAYS GEORGE DEMOLKY CANADA FUND MANAGER FOR BOSTONBASED FIDELITY INVESTMENTS THERE'S A GENUINE INTEREST IN ALBERTA COMPANIES COMING NOT JUST FROM US RETAIL INVESTORS BUT ALSO FROM SOME INSTITUTIONS HE SAYS HE ADDS THAT HE PERSONALLY OWNS SHARES OF SMALL ALBERTALISTED COMPANIES BUT HAS NONE IN THE FUND BECAUSE THEY AREN'T SUFFICIENTLY LIQUID DESPITE ITS RECENT GROWTH THE ALBERTA EXCHANGE IS STILL VERY MUCH A HOME FOR PENNY STOCKS THE FLOW OF NEW ISSUES AT LOW PRICES AND THE MIGRATION OF SENIOR COMPANIES TO BIGGER STOCK EXCHANGES HAS KEPT THE AVERAGE PRICE OF ALBERTALISTED SHARES AT ABOUT C1 UNCHANGED FROM A YEAR AGO 9309280131 930928 CARGILL INC DROPS PLAN TO BUILD SALT FACTORY IN INDIA FOR 17 MILLION MINNEAPOLIS CARGILL INC DROPPED ITS PLAN TO BUILD A SALT FACTORY IN INDIA FOR ABOUT 17 MILLION THE PLAN HAD DRAWN STIFF OPPOSITION FROM SOME INDIAN POLITICIANS AND SMALLSCALE SALT PRODUCERS BUT THE CLOSELY HELD FARMCOMMODITY PROCESSOR SAID IT IS PULLING BACK BECAUSE OF CHANGING ECONOMICS IN THE PACIFIC RIM NATIONS WHERE IT PLANNED TO SELL THE SALT RATHER THAN BECAUSE OF THE OPPOSITION A SPOKESMAN SAID FEASIBILITY STUDIES LED THE COMPANY TO CONCLUDE THAT THE ECONOMICS WEREN'T THERE TO MAKE THE PLANT A WORTHWHILE INVESTMENT AT PRESENT CARGILL LAST YEAR BEGAN LAYING THE PROCEDURAL GROUNDWORK TO BUILD THE SALT FARM AT WHICH IT PLANNED TO PRODUCE ABOUT A MILLION METRIC TONS 11 MILLION SHORT TONS ANNUALLY FOR EXPORT LARGELY TO PACIFIC RIM COUNTRIES SUCH AS JAPAN TAIWAN AND SOUTH KOREA BUT THE PLAN ANTAGONIZED SMALLER LOCAL PRODUCERS WHO SAW THE LARGESCALE UNDERTAKING AS A COMPETITIVE THREAT SOME OPPONENTS RAISED QUESTIONS ABOUT ENVIRONMENTAL EFFECTS AND OTHERS CONTENDED THAT INDIAN JOBS WOULD BE ELIMINATED CARGILL STRONGLY DISPUTED THOSE POINTS THE COMPANY IS PRESSING AHEAD WITH THE CONSTRUCTION OF A SEEDPROCESSING FACILITY IN SOUTHERN INDIA DESPITE A LOCAL FARMERS' GROUP'S RANSACKING THE PLANT AND IS CONSIDERING BUILDING A CITRICACID PLANT IN INDIA 9309280130 930928 REVIEW & OUTLOOK EDITORIAL CABLE MALARKEY WE BELIEVE IN GIVING CREDIT WHERE IT'S DUE SO IT'S ONLY RIGHT THAT MASSACHUSETTS CONGRESSMAN ED MARKEY IS HOLDING HEARINGS TODAY TO EXPLORE WHY LAST YEAR'S CABLE TV REREGULATION BILL HAS GONE HAYWIRE HE COULD CALL HIMSELF AS THE FIRST WITNESS FOR AS EVERYONE WHO'S FOLLOWED CABLE POLICY KNOWS MR MARKEY AND HIS FORMER AIDE LARRY IRVING WROTE THE CABLE BILL HE ALSO HELPED CONGRESS OVERRIDE A PRESIDENTIAL VETO IN AN ELECTION YEAR AND HAS SINCE BIRDDOGGED THE FEDERAL COMMUNICATIONS COMMISSION IN WRITING REGULATIONS BASED ON THE BILL NOW THAT THOSE RULES ARE BEING IMPLEMENTED YOU'D THINK HE'D WANT TO TAKE A BOW YET INSTEAD MR MARKEY IS TAKING SHOTS WE HAVE REAGANSTYLE REGULATORY INTERPRETATIONS FOR A '90S DEMOCRATIC BILL MR MARKEY HOWLED THE OTHER DAY EVEN THOUGH TWO OF THE THREE SITTING FCC COMMISSIONERS ARE DEMOCRATS AND THE GIPPER RODE OUT OF TOWN HALF A DECADE AGO IT LOOKS AS IF TODAY'S HEARING IS GOING TO BE MR MARKEY'S ATTEMPT AIDED BY HIS TRUSTY TONTO REPUBLICAN CHRISTOPHER SHAYS OF CONNECTICUT TO SHIFT BLAME TO THE FCC THE CABLE COMPANIES EVEN FORMER PRESIDENTS ANYONE BUT HIMSELF AND HIS FELLOW CONGRESSIONAL GENIUSES OUR OWN VIEW IS THAT THE CABLE BILL IS A CASE STUDY IN WHAT HAPPENS WHEN CONGRESS DECIDES TO RUN AN INDUSTRY WITH THE BILL PASSED THE FCC HAS BEEN DUTIFULLY WRITING HUNDREDS OF PAGES OF NEW RULES FOR CABLE HIRING SOME 240 NEW BUREAUCRATS FOR THE JOB THE RESULT HAS BEEN ALL KINDS OF UNINTENDED CONSEQUENCES MOST OF THEM BAD MR MARKEY PLEDGED DURING CONGRESSIONAL DEBATE THAT CABLE PRICES WOULD FALL AFTER THE BILL PASSED SEE LAST OCT 5 CONGRESSIONAL RECORD BUT IT TURNS OUT HE DIDN'T KNOW HOW THE INDUSTRY WORKS IT NOW APPEARS THAT AT LEAST 40 AND MAYBE 50 OF THE NATION'S 57 MILLION CABLE CONSUMERS ARE GOING TO PAY MORE THIS IS BECAUSE IN THE PAST MANY CABLE COMPANIES HAVE CROSSSUBSIDIZED CERTAIN CUSTOMERS ESPECIALLY POORER ONES WHO TOOK WHAT IS SOMETIMES CALLED BASIC SERVICE THESE BASIC USERS COULD PAY LESS BECAUSE OTHER USERS WERE AMONG OTHER THINGS CHARGED AN EXTRA FEE FOR EACH TV SET CARRYING CABLE IN THE HOME BUT THE MARKEY BILL IMPOSED SOMETHING CALLED COSTBASED PRICING WHICH HAS FORCED COMPANIES TO BILL FOR EVERY SERVICE AT SOME INCREMENT ABOVE ITS COST SO CROSSSUBSIDIES ARE NOW TABOO IN PRACTICE THIS MEANS AND WE'RE NOT MAKING THIS UP THAT PRINCE BIN SULTAN BIN ABDUL AZIZ OF SAUDI ARABIA IS GOING TO SEE HIS CABLE BILL CUT BY AT LEAST 400 A MONTH AT HIS 26 MILLION ESTATE OVERLOOKING ASPEN ACCORDING TO CABLE WORLD YET IN NEARBY RIFLE COLO THE FOLKS WHO COMMUTE TO WORK IN ASPEN WILL PAY MORE SO WILL HERMAN BROWN OF NEEDHAM MASS WHO TOLD THE BOSTON GLOBE HE'S SEEN HIS 995 CABLE PACKAGE VANISH TO GET THE CSPAN CHANNELS HE LIKES HE SAYS HE NOW HAS TO PAY 2144 A MONTH OTHERS REAPING A REVERSEWINDFALL INCLUDE SENIOR CITIZENS AND APARTMENT DWELLERS LOSING DISCOUNTS BECAUSE THE FCC HAS ENFORCED UNIFORM PRICING THAT FORBIDS MOST SPECIAL DEALS MR MARKEY WILL TRY TO BLAME ALL OF THIS MESS ON THE FCC BUT THE TRUTH IS THE REGULATORS ALREADY EFFECTIVELY ANSWER TO HIM A MARCH 22 1993 LETTER FROM MR MARKEY TO ACTING FCC CHAIRMAN JAMES QUELLO ISSUED MARCHING ORDERS AND AS RECENTLY AS THIS AUG 31 MR MARKEY WROTE MR QUELLO TO PRAISE THE FCC FOR DOING AN ADMIRABLE JOB IN DEVELOPING REGULATIONS FOR A COMPLICATED AND DIVERSE INDUSTRY UNDER A VERY STRICT TIMETABLE ONLY AFTER OTHER MEMBERS RETURNED FROM THEIR AUGUST RECESS WITH REPORTS OF UNHAPPY CONSUMERS HAS MR MARKEY DECIDED TO ATTACK THE FCC THE PUBLIC'S ABILITY TO LASH BACK SO FAST AFTER ONE OF THESE SCREWUPS IS ITSELF WORTHY OF COMMENT WE CAN'T WAIT TO SEE WHAT HAPPENS AFTER CONGRESS BOLLIXES UP THE ENTIRE US HEALTH CARE SYSTEM NOW WE DON'T FEEL SORRY FOR SOME CABLE OPERATORS WHO LIKED MONOPOLIES AND FORGOT THAT THE ONLY DEFENSE AGAINST THE MARKEYS OF CONGRESS IS COMPETITION BUT THE PERVERSE CONSEQUENCE OF THE MARKEY BILL IS THAT IT IS ANTICONSUMER THE BIGGEST CABLE COMPANIES CAN SURVIVE THANK YOU BUT THE SMALLER ENTREPRENEURS ARE ALREADY FINDING THEIR ACCESS TO CAPITAL VANISHING IN THE WAKE OF THE FEDERAL PRICE MEDDLING WHICH OVERALL WILL TAKE ABOUT 1 BILLION IN CASH FLOW FROM THE INDUSTRY BANKS HAVE WARNED THE FCC ABOUT THIS AND MOODY'S THE INVESTOR SERVICE HAS PUT OUT AN ALLPOINTS BULLETIN SO INVESTMENT IN SUCH NEW TECHNOLOGY AS FIBER OPTICS WILL SLOW AND FEWER NEW CHANNELS WILL BE AVAILABLE WE'D HAVE THOUGHT A CLINTON ADMINISTRATION INTERESTED IN THE INFORMATION SUPERHIGHWAY WOULD POINT ALL THIS OUT BUT INSTEAD IT HAS HIRED REP MARKEY'S FORMER AIDE MR IRVING TO REGULATE THE VERY INDUSTRY HE'S TURNED UPSIDE DOWN AND AL GORE WAS A COSPONSOR OF THE SENATE'S MARKEYLIKE BILL WE HOPE OUR READERS KEEP ALL THIS IN MIND WHEN THEY HEAR REPORTS OF MR MARKEY'S HEARINGS THE US IS INDEED AT THE DAWN OF A GREAT REVOLUTION IN TELECOMMUNICATIONS BUT THE SUN WILL NEVER COME UP OVER IT SO LONG AS THIS CREW STILL BELIEVES IT CAN REGULATE THE PLANETS 9309280129 930928 MARKETING & MEDIA MARKETSCAN BUBBLY SALES SPRING FROM NOFIZZ WATER BY ES BROWNING BUYING A SOFT DRINK CAN BE A MINDNUMBING EXPERIENCE THESE DAYS WITH CHOICES LIKE DIET RASPBERRY ICED TEA AND KIWISTRAWBERRY JUICE MORE PEOPLE ARE APPARENTLY CRAVING SOMETHING SIMPLER PLAIN UNFLAVORED NONCARBONATED WATER FUELED BY COLA FATIGUE AND A GROWING SKEPTICISM ABOUT MUNICIPAL WATER SUPPLIES CONSUMPTION OF SUCH NONBUBBLY BOTTLEDWATERS AS EVIAN POLAND SPRING AND NAYA IS SOARING SUPERMARKET SALES JUMPED 21 DURING THE FIRST 32 WEEKS OF THIS YEAR ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE INDEED BOTTLED NONCARBONATED WATER NOW RANKS AS THE SECONDFASTESTGROWING BEVERAGE IN SUPERMARKETS TRAILING ONLY PREPARED ICED TEAS WE'VE AT LEAST TRIPLED THE FLOOR SPACE DEDICATED TO BOTTLED WATER IN THE PAST THREE OR FOUR YEARS SAYS A SPOKESMAN FOR KROGER CO OWNER OF 1280 SUPERMARKETS WHY ALL THE WATER SALES BEGAN TO SURGE IN THE LATE 1980S BUT THE CATEGORY HAD TWO TOUGH YEARS IN 1990 AND 1991 ANALYSTS BLAME A WEAK ECONOMY AND THE 1990 RECALL OF CONTAMINATED PERRIER WATER THEY WARN THAT THERE'S NO GUARANTEE THAT WATER SALES WON'T SLUMP AGAIN IN THE FUTURE BUT NOW AMERICANS ARE IN A STATE OF BEVERAGE FLUX COLA SALES HAVE STAGNATED AND PEOPLE ARE EXPERIMENTING WITH SUCH TRENDY SUBSTITUTES AS SUGARY SPARKLING WATERS FLAVORED TEAS AND OFFBEAT JUICES AND IN AN ERA WHEN MANY OF YESTERDAY'S STATUS SYMBOLS HAVE BECOME UNFASHIONABLE BOTTLED WATER REMAINS ACCEPTABLE BECAUSE OF ITS HEALTHFUL CHARACTERISTICS EVEN THOUGH IT'S OFTEN NOT THAT DIFFERENT FROM TAP WATER I'VE GOT A BOTTLE ON MY DESK RIGHT NOW SAYS JUDY STATES WHO WORKS FOR CIRCLE K CONVENIENCE STORES IN PHOENIX I'M BUYING IT FOR HEALTH REASONS I WANT TO DRINK MORE WATER INSTEAD OF SODAS THE BULK OF SUPERMARKET SALES OF NONCARBONATED WATER STILL IS IN HEFTY GALLON AND 2 1/2 GALLON JUGS THAT DEMAND HAS BEEN SPURRED RECENTLY BY WORRIES ABOUT MUNICIPAL WATER IN PLACES LIKE SOUTHERN CALIFORNIA NEW YORK MILWAUKEE AND THE FLOODSTRUCK MIDWEST BUT THE FASTEST GROWTH IS COMING IN A PART OF THE MARKET THAT BARELY EXISTED A DECADE AGO SOFTDRINKSIZE BOTTLES HOLDING 1 1/2 LITERS OR LESS PEOPLE ARE MOVING AWAY FROM CARBONATED BEVERAGES AND GOING TOWARD EVIAN AND OTHER WATERS SAYS THOMAS HARBERTS PRESIDENT OF MINNEAPOLISBASED BYERLYS INC WHICH OWNS NINE SUPERMARKETS ANALYSTS SAY THE SMALLER PACKAGES FIRST BECAME POPULAR IN THE 1980S WHEN IMPORTED EVIAN WATER MADE BY FRANCE'S BSN SA BECAME A YUPPIE FAVORITE MORE RECENTLY CONSUMERS' QUEST FOR MORE HEALTHFUL BEVERAGES NOT LADEN WITH CHEMICALS HAS BUOYED DEMAND THE US ARMY MAY ALSO HAVE HELPED SPARK SALES BSN SUPPLIED THE DESERT FORCES WITH A STREAM OF EVIAN AND SOLDIERS SWIGGING STRAIGHT FROM THE TRADEMARK BOTTLE WERE FEATURED IN TELEVISION NEWS ACCOUNTS OF THE WAR SO FAR AT LEAST EVIAN IS MORE THAN HOLDING ITS OWN SALES OF THE PRESTIGE BRAND GREW 255 DURING THIS YEAR'S FIRST 32 WEEKS FASTER THAN THE CATEGORY AS A WHOLE EVIAN THIS YEAR PAID FOR 16PAGE AD INSERTS IN ROLLING STONE THE NEW YORKER AND HG FORMERLY HOUSE & GARDEN AND AIRED HIGHLY STYLIZED TELEVISION COMMERCIALS RATHER THAN STRESSING ITS ELITE IMAGE THE ADS PLAY UP THE HEATHFUL BENEFITS OF HYDRATION AND URGED PREGNANT WOMEN TO DRINK MORE WATER ONE EVEN ENCOURAGED PEOPLE TO REPLENISH THEIR BRAINS' WATER SUPPLIES LOWERPRICED DOMESTIC WATERS ARE ALSO COMING ON STRONG SALES OF NAYA OWNED BY CANADA'S NORA BEVERAGES INC JUMPED 667 SO FAR THIS YEAR WHILE THE POLAND SPRING AND CALISTOGA BRANDS GREW 233 AND 2062 RESPECTIVELY ALTHOUGH THE CALISTOGA GROWTH CAME ON RELATIVELY LOW VOLUMES BOTH OF THOSE BIG US BRANDS AS WELL AS ARROWHEAD ARE OWNED BY THE PERRIER GROUP CONTROLLED BY NESTLE SA IN FACT SUCH MADEINTHEUSA WATERS TODAY ACCOUNT FOR MORE THAN 90 OF THE PERRIER GROUP'S US SALES PERRIER SAYS ITS FLAT WATER BRANDS ARE GROWING MUCH FASTER THAN ITS CARBONATED WATERS WITH EVIAN SELLING AT AROUND 159 A BOTTLE A CERTAIN AUDIENCE WILL THINK 79 CENTS OR 89 CENTS FOR POLAND SPRING OZARKA CALISTOGA OR ARROWHEAD IS A GOOD DEAL SAYS JEFFREY CASO MARKETING CHIEF FOR PERRIER OF AMERICA INDEED PERRIER CURRENTLY IS SPENDING AS MUCH ON ARROWHEAD ADS AS IT IS ON ADS FOR ITS TRADEMARK FIZZY PERRIER WATER TELEVISION ADS FOR THE CALIFORNIA FLATWATER BRAND ARE LIGHT AND BREEZY FEATURING SURFERS AND PEOPLE AT THE POOL OR ON THE STREET TELEVISION ADS FOR POLAND SPRING A PERRIEROWNED BRAND BASED IN THE NORTHEAST SHOW CROSSCOUNTRY SKIERS THEY CALL THAT WATER'S MAINE SOURCE A CLEAN NATURAL PLACE SOME OFFER SPECIAL DISCOUNTS OTHER MARKETERS ARE NOW SCRAMBLING TO CASH IN SARATOGA SPRING WATER CO WHICH FOR YEARS MADE ONLY SPARKLING WATER BEGAN SELLING STILL WATER NINE MONTHS AGO ALREADY IT SELLS AS MUCH FLAT WATER AS BUBBLY THAT'S WHERE THE DEMAND IS SAYS SANDRO FRATURRA SARATOGA'S INVESTOR RELATIONS DIRECTOR PEPSICO INC LAST YEAR STARTED DISTRIBUTING A CANADIAN WATER CALLED AVALON WHICH IT NOW SELLS IN 25 OF THE COUNTRY IN NEW MEXICO A FORMER ASSISTANT SECRETARY OF DEFENSE NAMED COLIN MCMILLAN WHO IS PREPARING TO RUN FOR THE US SENATE SAYS HE ALSO IS ABOUT TO LAUNCH A NEW WATER BRAND CALLED SIERRA BLANCA THE MARKET IS SO HECTIC AND SO FRAGMENTED THAT ANYONE WITH A CREEK IN HIS BACK YARD IS TRYING TO GET INTO THE BUSINESS SAYS ONE SUPERMARKET OFFICIAL IN THE PAST WEEK WE'VE HAD WATER PRODUCERS FROM ICELAND AND GREECE TRYING TO SELL US THEIR WATER IN THE PAST MONTH WE'VE HAD VIRTUALLY EVERY PROVINCE OF CANADA 9309280128 930928 WHO'S NEWS SONY MUSIC CREATES OFFICE OF CHAIRMAN UNDER SCHULHOF BY LAURA LANDRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SONY CORP OF AMERICA'S CHIEF EXECUTIVE OFFICER MICHAEL P SCHULHOF REORGANIZED TOP MANAGEMENT RANKS AT SONY MUSIC GROUP FORMING AN OFFICE OF THE CHAIRMAN THAT INCLUDES THE THREE TOP EXECUTIVES OF THE RECORD UNIT THE MOVE ANNOUNCED IN A MEMO TO EMPLOYEES YESTERDAY WAS CLEARLY MEANT TO SEND A MESSAGE THAT MR SCHULHOF WHO IS ALSO CHAIRMAN OF SONY MUSIC REMAINS FIRMLY IN CONTROL OF THE US MUSIC OPERATION WITH THE THREE EXECUTIVES REPORTING TO HIM THERE WAS CONSIDERABLE CONFUSION ABOUT THAT ISSUE LAST WEEK WHEN THOMAS D MOTTOLA PRESIDENT OF SONY MUSIC WAS GIVEN THE ADDITIONAL TITLE OF CHIEF OPERATING OFFICER AT THE TIME MR MOTTOLA'S NEW TITLE WAS ANNOUNCED A SPOKESWOMAN SAID THAT HIS NEW POST ESSENTIALLY IS EQUIVALENT TO THAT OF WALTER YETNIKOFF WHO WAS CHAIRMAN OF CBS RECORDS BEFORE IT WAS ACQUIRED BY THE PARENT SONY CORP HOWEVER SONY OFFICIALS SAID YESTERDAY THAT IS NOT THE CASE AFTER MR YETNIKOFF'S DEPARTURE THE TITLE OF CHAIRMAN OF THE RENAMED SONY MUSIC WAS GIVEN TO MR SCHULHOF UNDER THE NEW STRUCTURE IN FACT MR MOTTOLA WILL RANK EQUALLY WITH MEL ILBERMAN PRESIDENT OF SONY MUSIC INTERNATIONAL AND ROBERT BOWLIN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF SONY MUSIC PREVIOUSLY MR ILBERMAN HAD REPORTED TO MR MOTTOLA BUT SLIGHTLY MORE THAN HALF OF SONY'S MUSIC REVENUE COMES FROM INTERNATIONAL MARKETS IN WHICH MR MOTTOLA A FORMER ROCK GROUP MANAGER HAS NO PARTICULAR EXPERTISE SONY MUSIC HAD REVENUE OF 384 BILLION LAST YEAR IN HIS MEMO MR SCHULHOF SAID THAT AS THE INTERNATIONAL MARKETS FOR SONY'S RECORDED MUSIC CONTINUE TO GROW THE OFFICE OF THE CHAIRMAN WAS FORMED TO ASSURE OUR COMPANY OF THE BEST THINKING IN PLANNING OUR FUTURE THE THREEMAN GROUP WILL FACILITATE COMMUNICATIONS AND STRATEGIC PLANNING AND ENSURE THAT WE TAKE ADVANTAGE OF THE TREMENDOUS OPPORTUNITIES IN OUR DOMESTIC AND INTERNATIONAL MARKETS THE MEMO ADDED ON THE DOMESTIC FRONT MR MOTTOLA IS CREDITED WITH BOOSTING SONY'S MARKET SHARE TO ITS HIGHEST POINT IN A DECADE AND DOUBLING ITS OPERATING PROFIT HIS MANAGEMENT TEAM IN THE US HAS DEVELOPED A SERIES OF CUTTINGEDGE ROCK BANDS INCLUDING PEARL JAM ALICE IN CHAINS AND SOUL ASYLUM INTO ACTS THAT GO PLATINUM OR SELL A MILLION COPIES CURRENTLY SONY MUSIC HAS A NUMBER OF THE TOP 10 ALBUMS ON THE BILLBOARD MUSIC CHART INCLUDING BILLY JOEL'S NEW ALBUM AND THE SOUNDTRACK FOR SLEEPLESS IN SEATTLE MR SCHULHOF ALSO OVERSEES THE REST OF SONY'S US OPERATIONS INCLUDING SONY'S MOTION PICTURE OPERATIONS WITH SONY PICTURES CHAIRMAN PETER GUBER REPORTING TO HIM MR SCHULHOF EARLIER THIS YEAR WAS ALSO GIVEN CONTROL OF THE 5 BILLION US CONSUMER ELECTRONICS BUSINESS THE HEAD OF THAT UNIT RONALD SOMMER RETURNED TO SONY'S EUROPEAN OPERATIONS IN JUNE MR SCHULHOF HAS RETAINED THE SEARCH FIRM HEIDRICK & STRUGGLES TO SEEK A NEW HEAD FOR THE CONSUMER ELECTRONICS GROUP HE COULDN'T BE REACHED TO ELABORATE ON THE MEMO 9309280127 930928 PEPPERAND SALT CAME FROM A FAR DISTANT SHORE AND THE LABELS ARE A WAY TO KEEP SCORE HUG A BALDING MAN TODAY BEFORE THE GUYS WITH HAIR 9309280126 930928 BUSINESS BRIEF TEXFI INDUSTRIES INC SHARES PLUNGE ON FORECAST OF FISCAL 4THQUARTER LOSS TEXFI INDUSTRIES INC A RALEIGH NC TEXTILE AND APPAREL MAKER SAW ITS STOCK DROP 211 AFTER ANNOUNCING THAT IT EXPECTS TO REPORT A NET LOSS FOR ITS FISCAL FOURTH QUARTER THE COMPANY ATTRIBUTED THE LOSS TO CONTINUED WEAKNESS IN TSHIRT SALES WHICH THE COMPANY BLAMES ON AN OVERSUPPLY IN THE MARKET TEXFI ALSO SAID IT SAW AN UNEXPECTED AND SUDDEN DECLINE IN THE SALES AND PROFITS OF ITS BLENDEDFABRIC APPAREL DIVISION WHICH IT ATTRIBUTED TO THE WEAK RETAIL ENVIRONMENT 9309280125 930928 TECHNOLOGY VALENCE SPARKED BY BATTERY LINE SEES SALES OF 500 MILLION WITHIN FIVE YEARS BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL SAN JOSE CALIF VALENCE TECHNOLOGY INC AN EMERGINGTECHNOLOGY CONCERN SAYS IT WILL SHIP HUNDREDS OF THOUSANDS OF NEWLY DEVELOPED LITHIUM POLYMER BATTERIES TO MOTOROLA INC NEXT YEAR AND EXPECTS TO GENERATE ANNUAL SALES OF MORE THAN 500 MILLION WITHIN FIVE YEARS THE COMPANY'S STOCK JUMPED 250 OR 15 ON THE NEWS TO CLOSE AT 19 IN NASDAQ TRADING PRESIDENT CALVIN L REED SAID VALENCE HAS ENTERED INTO AN AGREEMENT WITH THE GOVERNMENT OF NORTHERN IRELAND UNDER WHICH THE GOVERNMENT WILL CONTRIBUTE 40 MILLION IN CAPITAL AND RESEARCH AND DEVELOPMENT GRANTS OVER THE NEXT FIVE YEARS FOR THE CONSTRUCTION OF A MANUFACTURING PLANT WITH A TOTAL VALUE OF 100 MILLION THE PLANT IN MALLUSK EVENTUALLY WILL HAVE THE CAPACITY TO MANUFACTURE A BATTERY A SECOND ACCORDING TO ANALYSTS RECHARGEABLE LITHIUM POLYMER BATTERIES ARE BASED ON A TECHNOLOGY CONSIDERED TO BE A BREAKTHROUGH BY VALENCE'S SUPPORTERS AND A STILLFORMIDABLE CHALLENGE BY ITS SKEPTICS THE BATTERY CELLS ARE CONNECTED IN A THIN CARDBOARDLIKE MATERIAL CONSISTING OF A LITHIUM METAL ANODE FLEXIBLE SOLID POLYMER ELECTROLYTE AND A CATHODE THAT STORES LITHIUM IONS THE MATERIAL CAN BE CUT AND SHAPED IN MANY FORMS AND IS MUCH LIGHTER AND LONGERLASTING THAN CONVENTIONAL RECHARGEABLE BATTERIES VALENCE ASSERTS THAT ONE OF ITS BATTERIES CAN DELIVER AS MUCH POWER AS A CONVENTIONAL BATTERY BUT OCCUPY ONETHIRD AS MUCH VOLUME AND WEIGH ONEFOURTH AS MUCH MOTOROLA HAS PLACED A 100 MILLION ORDER FOR SUCH BATTERIES WHICH IT BELIEVES WILL ADD TO THE PERFORMANCE OF ITS PAGERS CELLULAR PHONES AND TWOWAY RADIOS WHILE ENABLING FURTHER REDUCTIONS IN SIZE OR WEIGHT BUT SKEPTICS STILL ABOUND VALENCE'S STOCK HAS FALLEN FROM A HIGH OF 26 A SHARE IN JANUARY MR REED SAID THE SHARP DECLINE MAY BE DUE TO UNCERTAINTY IN THE MARKET ABOUT VALENCE'S ABILITY TO MASSMANUFACTURE LITHIUM BATTERIES AS WELL AS TO A NEGATIVE STORY IN FORBES MAGAZINE EARLIER THIS YEAR HE SAID NORTHERN IRELAND'S DECISION TO POUR 40 MILLION INTO A HIGHVOLUME PLANT HOWEVER VALIDATES VALENCE'S ABILITY TO MEET ITS MANUFACTURING GOALS NORTHERN IRELAND HAS DONE ITS DUE DILIGENCE HE SAID THEY REVIEWED OUR PROCESSES AND OUR FACTORY IN CALIFORNIA AND TALKED TO OUR PARTNERS THEY MADE SURE WE HAVE A REAL PRODUCT AND A REAL TECHNOLOGY VALENCE STILL HAS TO CLEAR SOME HURDLES HOWEVER FOR ONE THING THE INITIAL PRICE OF ITS BATTERIES WILL BE HIGH IT ALSO HASN'T DEMONSTRATED A COMPLETE MANUFACTURING PROCESS YET MICHAEL GORDON AN ANALYST FOR MONTGOMERY SECURITIES SAN FRANCISCO SAID VALENCE HAS PROVEN IN ITS SAN JOSE PLANT THAT IT CAN MASSPRODUCE LAMINATED SHEETS OF LITHIUM CATHODE MATERIAL AND ELECTROLYTE POLYMER BUT HAS TO COMPLETE PROCESSES FOR STACKING AND CONNECTING THIN SANDWICHES OF THE LAMINATE INTO BATTERIES AND FOR PACKAGING FINAL PRODUCTS NEVERTHELESS MR GORDON RATES THE STOCK A STRONG BUY HE EXPECTS VALENCE TO HAVE STACKANDCONNECT TEST EQUIPMENT OPERATIONAL IN SAN JOSE BY THE END OF THE YEAR VALENCE ALSO IS IN A THREEYEAR JOINT PROJECT WITH THE DELCO REMY DIVISION OF GENERAL MOTORS CORP TO ASSESS THE FEASIBILITY OF USING LITHIUM BATTERIES TO POWER ELECTRIC CARS DELCO HAS SPENT 20 MILLION ON THE PROJECT SO FAR WE'RE PRETTY CONFIDENT IT WILL PAY OFF SAID TERRY POORMAN MANAGER OF ADVANCED ELECTRIC VEHICLE SYSTEMS FOR DELCO VALENCE'S MR REED SAID THE TINY BATTERIES THAT MOTOROLA IS INTERESTED IN WILL HAVE A TWOTOONE PERFORMANCE ADVANTAGE OVER CONVENTIONAL BATTERIES THE EDGE IMPROVES WITH THE SIZE OF THE BATTERY ONES FOR PORTABLE COMPUTERS SHOULD HAVE A THREETOONE EDGE HE SAID MR REED PREDICTED THAT VALENCE WILL GENERATE 500 MILLION TO 1 BILLION OF SALES ANNUALLY IN ABOUT FIVE YEARS AT GROSS MARGINS OF AT LEAST 45 TO 55 MR GORDON THE MONTGOMERY ANALYST DOESN'T THINK MR REED IS FANTASIZING HE PREDICTS A LOSS OF 113 A SHARE IN THE FISCAL YEAR ENDING NEXT MARCH 31 PERSHARE NET INCOME OF 20 CENTS IN FISCAL 1995 AND A BOOMING 160 A SHARE IN FISCAL 1996 VALENCE HAS ABOUT 163 MILLION SHARES OUTSTANDING IN FISCAL 1993 THE COMPANY POSTED A LOSS OF 85 MILLION OR 63 CENTS A SHARE ON CONTRACT REVENUE OF 64 MILLION 9309280124 930928 CHIPS & TECHNOLOGIES ASSET SALE SAN JOSE CALIF CHIPS & TECHNOLOGIES INC SAID IT AGREED TO SELL THE ASSETS OF ITS DISCONTINUED NETWORKING MULTIMEDIA AND RUSSIAN COMPUTER SYSTEMS BUSINESSES TO TECHFARM INC A SUNNYVALE CALIF COMPANY WHOSE PRINCIPAL SHAREHOLDERS INCLUDE FORMER CHIPS EXECUTIVES THE SEMICONDUCTOR MANUFACTURER SAID TECHFARM WILL PURCHASE THE BUSINESSES FOR 17 MILLION AND ASSUME CERTAIN ADDITIONAL LIABILITIES TECHFARM'S PRINCIPAL SHAREHOLDERS INCLUDE GORDON CAMPBELL CHIPS' FORMER PRESIDENT AND CHIEF EXECUTIVE AND NANCY DUSSEAU AND JEFFREY GRAMMER FORMER CHIPS OFFICIALS 9309280121 930928 HUFFY TO REDEEM 7 1/4 DEBT DAYTON OHIO HUFFY CORP SAID IT WILL REDEEM ITS 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2014 THE COMPANY HAS ABOUT 30 MILLION OF THESE DEBENTURES OUTSTANDING THE REDEMPTION DATE IS OCT 27 THE DEBT WILL BE REDEEMED AT 10435 PLUS ACCRUED INTEREST THE DEBENTURES ARE CONVERTIBLE UNTIL OCT 27 INTO HUFFY COMMON STOCK AT A RATE OF 65789 SHARES FOR EVERY 1000 PRINCIPAL AMOUNT OF DEBENTURES HUFFY MAKES SPORTING GOODS AND GARDEN TOOLS 9309280120 930928 COMMODITIES COFFEE FUTURES TUMBLE ON DOUBTS ABOUT PLAN TO CURB EXPORTS US WITHDRAWAL FROM GROUP BY JEFFREY TAYLOR AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL COFFEE FUTURES PRICES TUMBLED ON SKEPTICISM ABOUT A PLAN AMONG AFRICAN AND LATIN AMERICAN COUNTRIES TO LIMIT THEIR COFFEE EXPORTS AND A FORMAL ANNOUNCEMENT THAT THE US IS QUITTING THE INTERNATIONAL COFFEE ORGANIZATION AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE PRICE OF THE ACTIVELY TRADED DECEMBER COFFEE FUTURES CONTRACT FELL 36 CENTS TO 7750 CENTS A POUND SINCE SPRING COFFEE PRICES HAVE RALLIED MORE THAN 50 ON EXPECTATIONS THAT THE INTERAFRICAN COFFEE ORGANIZATION AND THE LESS FORMAL ORGANIZATION THAT REPRESENTS COFFEEPRODUCING NATIONS IN LATIN AMERICA WOULD DEVISE A PLAN TO LIMIT THEIR COFFEE EXPORTS THESE TWO ORGANIZATIONS WHICH REPRESENT ABOUT TWO DOZEN OF THE WORLD'S BIGGEST COFFEEPRODUCING COUNTRIES HAVE SINCE AGREED TO WITHHOLD 20 OF THEIR PLANNED COFFEE EXPORTS IF PRICES ARE BELOW CERTAIN PRESPECIFIED LEVELS THE AGREEMENT WHICH IS SCHEDULED TO TAKE EFFECT FRIDAY SEEKS TO RAISE COFFEE PRICES WHICH SANK AS LOW AS 50 CENTS A POUND IN THE SPRING YESTERDAY HOWEVER COFFEE FUTURES PRICES PLUNGED AS TRADERS ANTICIPATED THAT COFFEE PRODUCERS IN THE AFRICAN AND LATIN AMERICAN NATIONS MAY HAVE TROUBLE CARRYING OUT THE PLAN THERE'S A LOT OF NERVOUS SELLING SAID SANDRA KAUL COFFEE ANALYST FOR SMITH BARNEY SHEARSON THERE ARE CONCERNS THAT PRODUCERS MAY NOT BE ABLE TO ADHERE TO THE SCHEME OR FINANCE THE SCHEME ALSO SAID TO HAVE INFLUENCED THE COFFEE MARKET YESTERDAY WAS AN ANNOUNCEMENT THAT THE US THE WORLD'S LARGEST COFFEE CONSUMER WILL WITHDRAW FROM THE INTERNATIONAL COFFEE ORGANIZATION THE US JOINED THE ORGANIZATION 20 YEARS AGO UNTIL 1989 BOTH PRODUCER AND CONSUMER NATIONS USED THE ORGANIZATION TO INSTITUTE EXPORT QUOTAS THAT SUPPORTED WORLD PRICES FOR COFFEE SOME US OFFICIALS SUGGESTED THAT THE DECISION TO WITHDRAW FROM THE ORGANIZATION WAS INTENDED TO COUNTERACT ANY PRICE INCREASE SPURRED BY THE LATIN AMERICAN AND AFRICAN PLAN TO CURB EXPORTS IT'S GREAT NEWS FOR AMERICAN CONSUMERS SAID SEN HANK BROWN R COL A LONGTIME CAMPAIGNER FOR AN END TO US PARTICIPATION BUT SOME ANALYSTS PLAYED DOWN THE MARKET IMPACT OF THE WITHDRAWAL THIS ISN'T NEW MS KAUL SAID THE SENATE VOTED IN JULY TO DO THIS IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS CORN FUTURES PRICES SETTLED MIXED AMID CONFLICTING FORECASTS FOR A FROST ACROSS THE MIDWEST LATER THIS WEEK SOME METEOROLOGISTS EXPECT COLD TEMPERATURES TO END THE CORN AND SOYBEAN GROWING SEASONS AS FAR SOUTH AS THE IOWAMISSOURI BORDER WHILE OTHERS DON'T EXPECT THE FROST TO EXTEND THAT FAR SUCH A FROST WOULD BE ABOUT TWO WEEKS EARLIER THAN NORMAL AND TRIM THE SIZE OF THE IMPENDING HARVESTS BECAUSE MANY FIELDS AREN'T MATURE YET THE GROWTH RATES OF MANY MIDWEST CROPS WEST OF THE MISSISSIPPI RIVER WERE SLOWED BY RECORD SUMMER RAINS THE CORN CONTRACT FOR DECEMBER DELIVERY AT THE CHICAGO BOARD OF TRADE FELL 25 CENTS A BUSHEL TO SETTLE AT 24625 A MIDSEPTEMBER FROST HAS ALREADY ENDED THE GROWING SEASON IN SOME AREAS OF SOUTH DAKOTA AND MINNESOTA THE WEEKLY CROP CONDITION REPORTS RELEASED BY THE 19 MAJOR FARM STATES AFTER THE CLOSE OF TRADING YESTERDAY SHOWED THAT ONLY 40 OF THE US CORN CROP HAS REACHED MATURITY NORMALLY ABOUT 70 OF THE CORN CROP IS FULLY DEVELOPED BY LATE SEPTEMBER ONE OF THE WORST HIT STATES IS MINNESOTA WHICH REPORTED THAT 6 OF THE STATE'S CORN CROP IS MATURE COMPARED WITH THE NORMAL 64 IOWA OFFICIALS SAID THAT 34 OF THE STATE'S CORN CROP IS MATURE COMPARED WITH THE 85 THAT IS USUALLY MATURE BY NOW THE WEEKLY FARMER SURVEY SHOWED THAT 45 OF THE US SOYBEAN CROP IS MATURE COMPARED WITH THE 62 THAT IS NORMALLY MATURE BY NOW ENERGY CRUDE OIL AND PRODUCT FUTURES PRICES SETTLED HIGHER IN HEAVY TRADING ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY AS TRADERS WAITED TO SEE IF MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CAN RESOLVE THE ISSUE OF WHICH OF THE GROUP'S MEMBERS GETS TO INCREASE ITS PRODUCTION OPEC ANNOUNCED AN INTENDED PRODUCTION CEILING INCREASE FOR THE FOURTH QUARTER OF ONE MILLION BARRELS DAILY TO 245 MILLION BARRELS BUT TRADER UNCERTAINTY ABOUT OPEC'S ABILITY TO ASSIGN ITS MEMBERS INDIVIDUAL PRODUCTION QUOTAS THAT WOULD BE FAITHFULLY ADHERED TO KEPT PRICES FROM MOVING RADICALLY OPEC MINISTERS YESTERDAY COULDN'T AGREE ON A COUNTRYBYCOUNTRY PRODUCTION QUOTA SYSTEM BUT MORE TALKS ARE SCHEDULED TODAY THERE WERE BULLISH NEWS REPORTS THAT IRAN AND SAUDI ARABIA THE TWO LARGEST PRODUCERS WERE DISCUSSING COOPERATION ON PRODUCTION LIMITS BUT TRADERS WERE SKEPTICAL ABOUT KUWAIT AGREEING TO A REDUCED QUOTA AND WARY THAT IRAQ MAY AGAIN SOON SELL OIL ON THE WORLD MARKET AFTER HAVING AGREED TO TURN ON SURVEILLANCE CAMERAS AT ITS MISSILE SITES LAST WEEK 9309280119 930928 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 BARNES & NOBLE INC INITIAL OFFERING OF 82 MILLION COMMON SHARES PRICED AT 20 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BROADCASTING PARTNERS INC INITIAL OFFERING OF 35 MILLION CLASS A COMMON SHARES PRICED AT 1450 EACH THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS INC FRED MEYER INC SECONDARY OFFERING OF THREE MILLION COMMON SHARES PRICED AT 3450 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO THE COMPANY SHARES ARE BEING SOLD BY FMI ASSOCIATES EXPECTED TO REDUCE ITS STAKE TO 40 FROM 51 NEW YORK METROPOLITAN TRANSPORTATION AUTHORITY 218 MILLION SERIES N TRANSIT FACILITIES REVENUE BONDS PRICED BY A FIRST BOSTON CORP GROUP YIELDS RANGE FROM 3 IN 1994 TO 535 FOR ZEROCOUPON BONDS DUE IN 201114 BONDS DUE IN 1994 AND 1995 ARE UNINSURED AND HAVE A BAA RATING FROM MOODY'S INVESTORS SERVICE INC AND A TRIPLEBPLUS RATING FROM STANDARD & POOR'S CORP HOWEVER BONDS DUE IN 19962001 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND BONDS DUE IN 200214 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO ALL OF THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL NATIONAL MORTGAGE ASSOCIATION 2303 MILLION MULTIFAMILY REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING IS BACKED BY PASSTHROUGH CERTIFICATES 1993M1 CLASS A BANK MEESPIERSON NV NETHERLANDS 250 MILLION DUTCH GUILDERS OF 6 EUROBONDS FOR OWN ACCOUNT DUE NOV 2 1998 AT ISSUE PRICE OF 10095 REOFFERED AT 1002 TO YIELD 5953 ANNUALLY A SPREAD OF 32 BASIS POINTS ABOVE DUTCH SATE LOAN DUE JULY 1998 FEES ONE BANK NEDERLANDSCHE GEMEENDE NV NETHERLANDS ONE BILLION MARKS OF 65 EUROBONDS DUE NOV 4 2008 AT ISSUE PRICE 1019 VIA TRINKAUS & BURKHARDT KGAA REOFFERED AT 9933 TO YIELD 6572 A SPREAD OF 47 BASIS POINTS OVER 65 GERMAN BUND DUE 2003 FEES THREE INCLUDING LISTING FEE OF 05 BRITISH COLUMBIA MUNICIPAL FINANCE AUTHORITY CANADA 98 MILLION CANADIAN DOLLARS OF 725 EUROBONDS DUE NOV 19 2003 AT ISSUE PRICE 100175 VIA HAMBROS BANK LTD REOFFERED AT 9855 TO YIELD 7461 A SPREAD OF 38 BASIS POINTS ABOVE 725 CANADIAN GOVERNMENT BOND DUE 2003 FEES TWO FORCES MOTRICES VALAISANNES SWITZERLAND 150 MILLION SWISS FRANCS OF 45 BONDS DUE NOV 19 2003 AT ISSUE PRICE 1015 VIA UNION BANK OF SWITZERLAND FEES STANDARD LOTHBURY FUNDING NO PLC UK 300 MILLION OF MORTGAGEBACKED FLOATINGRATE EURONOTES IN THREE CLASSES DUE 2031 AT ISSUE AND FIXED REOFFER PRICE PAR VIA NATWEST CAPITAL MARKETS CLASS A1 144 MILLION OF SENIOR SECURED DEBT FLOATING AT 20 BASIS POINTS OVER THREEMONTH LIBOR TO INTEREST PAY DATE IN OCTOBER 2000 AND THEREAFTER 70 BASIS POINTS OVER THREEMONTH LIBOR FEES 0125 AND AVERAGE LIFE EXPENTANCY 183 YEARS CLASS A2 150 MILLION OF SENIOR SECURED DEBT FLOATING AT 40 BASIS POINTS OVER THREEMONTH LIBOR TO INTEREST PAY DATE IN OCTOBER 2000 AND THEREAFTER AT 90 BASIS POINTS OVER THREEMONTH LIBOR FEES 03 AND AVERAGE LIFE EXPECTANCY 508 YEARS CLASS B 6 MILLION OF SUBORDINATED DEBT FLOATING AT 120 BASIS POINTS OVER THREEMONTH LIBOR TO INTEREST PAY DATE IN OCTOBER 2000 AND THEREAFTER AT 170 BASIS POINTS OVER THREEMONTH LIBOR AVERAGE LIFE EXPECTANCY OF BONDS SEVEN YEARS FEES UNDISCLOSED INTEREST PAID QUARTERLY THERE IS A LONG FIRST COUPON 9309280118 930928 WHAT'S NEWS BUSINESS AND FINANCE PARAMOUNT'S DIRECTORS TOOK NO ACTION ON QVC'S 99 BILLION OFFER BUT SAID PARAMOUNT WILL CONSIDER THE QVC PROPOSAL WHEN THERE IS SATISFACTORY EVIDENCE OF FINANCING PARAMOUNT'S STOCK SURGED 2 A SHARE TO 77625 AS WALL STREET REACTED TO PARAMOUNT'S FIRST STATEMENT THAT IT IS PREPARED TO TALK TO QVC AT THE SAME TIME AS IT PROCEEDS WITH ITS PLANNED MERGER WITH VIACOM VALUED AT 79 BILLION BOND PRICES RALLIED HELPING TO DRIVE STOCKS HIGHER THE BOND RALLY POWERED BY A REPORT ABOUT THE FED'S NEUTRAL STANCE ON INTEREST RATES IN AUGUST SENT THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE UP MORE THAN 1 1/8 ITS YIELD FELL TO 594 THE DOW INDUSTRIALS SURGED 2459 TO 356770 GENERAL MOTORS WILL FALL ABOUT 110000 VEHICLES SHORT OF ITS ORIGINAL THIRDQUARTER US PRODUCTION PLANS BECAUSE OF PROBLEMS INSTALLING AIRBAGS AIR CONDITIONERS AND OTHER PARTS THE SHORTFALL COULD CUT SHARPLY INTO THE CAR COMPANY'S RESULTS IN THE QUARTER THE UNITED AUTO WORKERS' NEW PATTERN CONTRACT WILL BE BURDENSOME FOR GM THE CAR MAKER'S CHIEF EXECUTIVE JOHN SMITH SAID HE DIDN'T RULE OUT SIGNIFICANT ADDITIONAL JOB CUTS TIME WARNER PLANS TO JOIN CATALOG POWERHOUSE SPIEGEL TO LAUNCH TWO NEW CABLETV SHOPPING CHANNELS OFFERING UPSCALE NAMEBRAND MERCHANDISE COMMONWEALTH EDISON AGREED TO A 134 BILLION CUSTOMER REFUND AND A 339 MILLION ANNUAL RATE REDUCTION FOLLOWING FINDINGS THAT THE UTILITY MASSIVELY OVERBUILT NUCLEAR PLANTS OPEC MEMBERS AGREED ON A HIGHER DAILY OUTPUT CEILING BUT COUNTRY QUOTAS ARE STILL BEING NEGOTIATED CBS SAID IT WOULD LET CABLE OPERATORS CARRY ITS STATIONS' SIGNALS FOR FREE FOR A YEAR A SETBACK FOR THE NETWORK OTHER NETWORKS HAVE ACCEPTED INCREASED CARRIAGE ON CABLE SYSTEMS RATHER THAN CASH PAYMENTS THE WHITE HOUSE IS EXPECTED TO PROPOSE LEGISLATION TO FORCE COMPANIES TO BANKROLL MORE QUICKLY NEARLY 40 BILLION OF PENSIONPLAN UNDERFUNDING CORPORATE EXECUTIVES ARE GROWING MORE NERVOUS ABOUT THE ECONOMY AND LESS WILLING TO MAKE CAPITAL EXPENDITURES NEW SURVEYS SUGGEST GROWTH IN EXISTINGHOME SALES LEVELED OFF IN AUGUST BUT CONTINUED TO STRONGLY OUTPACE LAST YEAR'S SALES FORD IS RECALLING 12 MILLION 199093 PICKUPS TO FIX FUELPRESSURE REGULATORS AND CHECK VALVES THAT MAY CAUSE GAS TO LEAK THROUGH THE TANK COVER CLINTON'S HEALTH PLAN COULD HASTEN THE EXODUS OF SMALL INSURERS FROM THE BUSINESS UNDER THE PROPOSAL'S INTERIM CONTROLS ON THE INDUSTRY BUT BIG INSURERS WOULD FEEL LITTLE IMPACT GRAND METROPOLITAN ANNOUNCED A 264 MILLION RESTRUCTURING PROGRAM WHICH WILL CUT 3000 POSITIONS INCLUDING JOBS IN THE US THE FOOD CONCERN SAID IT WILL POST LOWERTHANEXPECTED FISCAL 1993 OPERATING PROFIT BANK REGULATORS ANNOUNCED GUIDELINES FOR BANKS THAT DEAL IN THE 7 TRILLION DERIVATIVES MARKET IN AN EFFORT TO PROTECT NEWCOMERS THAT MAY NOT SUFFICIENTLY UNDERSTAND THE RISK THEY FACE VALENCE TECHNOLOGY PLANS TO SHIP HUNDREDS OF THOUSANDS OF LITHIUM POLYMER BATTERIES TO MOTOROLA NEXT YEAR AND EXPECTS TO HAVE ANNUAL SALES OF OVER 500 MILLION WITHIN FIVE YEARS VALENCE'S STOCK JUMPED 250 TO 19 STRIDE RITE AGREED TO PAY 72 MILLION TO SETTLE CHARGES THAT IT CUT SHIPMENTS OF KEDS SHOES TO RETAILERS THAT WOULDN'T AGREE TO CHARGE FULL PRICE THE CASE WAS THE LATEST IN A SERIES OF STATE ACTIONS AGAINST CONSUMERGOODS MAKERS WHO ATTEMPT TO ENFORCE PREMIUM PRICES FOR THEIR PRODUCTS BONDS LEHMAN BROTHERS TREASURY INDEX 565514 UP 5322 COMMODITIES OIL 1773 A BARREL UP 16 CENTS DOW JONES FUTURES INDEX 12710 OFF 085 SPOT INDEX 11938 OFF 123 DOLLAR 10605 YEN UP 020 16290 MARKS OFF 00105 9309280117 930928 FOREST OIL TO BUY PROPERTIES DENVER FOREST OIL CORP SAID IT AGREED TO BUY ATLANTIC RICHFIELD CO'S INTEREST IN CERTAIN OIL AND NATURAL GAS PRODUCING PROPERTIES FOR 295 MILLION FOREST WILL ACQUIRE PRODUCTION OF ABOUT 65 MILLION CUBIC FEET OF NATURAL GAS AND 600 BARRELS OF OIL A DAY THE PROPERTIES ONE OFFSHORE AND THREE ONSHORE ARE IN THE GULF COAST AREA FOREST SAID THE PURCHASE ALSO INCLUDES A NEW WELL WHICH TESTED 28 MILLION CUBIC FEET OF GAS A DAY IN RELATION TO ARCO'S INTEREST THIS WELL IS EXPECTED TO BEGIN PRODUCTION IN THE FOURTH QUARTER RESERVES ACQUIRED ARE ESTIMATED AT 178 BILLION CUBIC FEET OF NATURAL GAS AND ONE MILLION BARRELS OF OIL SAID FOREST COMPLETION OF THE ACQUISITION SUBJECT TO VARIOUS APPROVALS AND CONDITIONS IS ANTICIPATED ON OR BEFORE OCT 31 9309280116 930928 COMPTRONIX RECEIVES CREDIT LINE GUNTERSVILLE ALA COMPTRONIX CORP SAID IT RECEIVED A 40 MILLION CREDIT COMMITMENT WHICH THE ELECTRONICS PARTS MAKER PLANS TO USE FOR REFINANCING BANK DEBT COMPTRONIX WHICH DISCLOSED A YEAR AGO THAT ITS SENIOR MANAGEMENT HAD INFLATED EARNINGS FOR YEARS SAID IT RECEIVED A 34 MILLION REVOLVING CREDIT FACILITY AND A 6 MILLION FIVEYEAR TERM LOAN FROM CIT BUSINESS CREDIT A UNIT OF ASSETBASED LENDER CIT GROUP IN NEW YORK WHICH IS OWNED BY CHEMICAL BANKING CORP AND DAIICHI KANGYO BANK COMPTRONIX ALSO SAID IT EXPECTS TO POST A LOSS IN THE THIRD QUARTER ENDING OCT 1 REFLECTING SOFT REVENUEEND 9309280115 930928 WHO'S NEWS PSI RESOURCES NAMES JOHN MUTZ PRESIDENT IN ADVANCE OF MERGER PLAINFIELD IND JOHN MUTZ PRESIDENT OF THE LILLY ENDOWMENT CHARITY AND A FORMER INDIANA LIEUTENANT GOVERNOR WAS NAMED PRESIDENT OF PSI RESOURCES INC A UTILITY HOLDING COMPANY MR MUTZ 57 YEARS OLD A PSI DIRECTOR SINCE 1991 SUCCEEDS JAMES E ROGERS MR ROGERS REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER PSI IS SEEKING TO MERGE WITH CINCINNATI GAS & ELECTRIC CO TO FORM A NEW HOLDING CONCERN KNOWN AS CINERGY WHEN THAT MERGER GOES THROUGH PSI RESOURCES SAID MR MUTZ WILL BE PRESIDENT OF CINERGY'S PSI ENERGY INC UNIT A POSITION THAT WILL GIVE HIM RESPONSIBILITY FOR ALL CINERGY OPERATIONS IN INDIANA 9309280114 930928 BUSINESS BRIEF FORD TO RECALL '90'93 FSERIES PICKUPS WITH TWO TANKS TO PREVENT GAS LEAKS DETROIT FORD MOTOR CO SAID IT'S RECALLING 12 MILLION 199093 MODEL FSERIES PICKUP TRUCKS WITH TWO GAS TANKS TO FIX FAULTY FUELPRESSURE REGULATORS AND TO CHECK VALVES THAT MAY CAUSE GASOLINE TO LEAK THROUGH ONE OF THE GASTANK COVERS FORD SAID IT'S AWARE OF SEVEN REPORTS OF FIRES IGNITED OUTSIDE OF THE GASOLINE TANKS IN WHICH GASOLINE HAD LEAKED THROUGH THE COVER AND DRIPPED DOWN THE SIDE OF THE VEHICLE HOWEVER A FORD SPOKESWOMAN SAID IT ISN'T AWARE OF ANY ACCIDENTS OR INJURIES RESULTING FROM THE FIRES MEANWHILE GENERAL MOTORS CORP SAID IT'S RECALLING A COMBINED 376000 FULLSIZED PICKUPS TO REPAIR DEFECTIVE BRAKE PARTS THAT COULD RESULT IN THE BRAKES FAILING GM SAID THAT IT'S AWARE OF 70 INCIDENTS IN WHICH THE ROTORS SEPARATED AND THAT SEVEN ACCIDENTS HAVE BEEN BLAMED ON THE PROBLEM HOWEVER GM SAID IT'S UNAWARE OF ANY RESULTING INJURIES OR DEATHS THE BIGGEST RECALL INVOLVES 300000 198892 FULLSIZED FOURWHEELDRIVE VANS AND 199092 MIDSIZE ALLWHEELDRIVE VANS WHICH MAY HAVE DEFECTIVE FRONTBRAKE ROTORS THE ROTORS COULD SEPARATE AS A RESULT OF HEAVY CORROSION LEADING TO BRAKE FAILURE THE RECALL MAINLY AFFECTS VANS OWNED BY PEOPLE IN 14 NORTHEAST AND MIDWEST STATES AND TWO CANADIAN PROVINCES GM SAID OWNERS OF THE VEHICLES WILL BE NOTIFIED BY MAIL AS PARTS BECOME AVAILABLE TO CORRECT THE PROBLEM BUT BECAUSE THE DETERIORATION OCCURS OVER TIME GM SAID OWNERS OF THE OLDEST VEHICLES INVOLVED IN THE RECALL WILL BE CONTACTED FIRST THE COMPANY SAID OWNERS OF THE NEWEST VEHICLES WILL BE CONTACTED BY THE SUMMER OF 1994 THE SECOND GM RECALL INVOLVES 76000 1994 FULLSIZED PICKUPS AND VANS WHICH MAY HAVE INCORRECTLY POSITIONED PEDALPUSHROD RETAINERS THIS DEFECT COULD CAUSE THE BRAKE BOOSTER PUSH ROD TO DISCONNECT FROM THE PEDAL WHICH MIGHT CAUSE THE BRAKES TO FAIL THE FORD RECALL WHICH AFFECTS ABOUT HALF OF ALL FSERIES VEHICLES IN THOSE YEARS INVOLVES POSSIBLE FAULTY FUELPRESSURE REGULATORS AND CHECK VALVES THE GASOLINE USED IN ONE TANK TO FUEL THE ENGINE MAY NOT RETURN TO THE ORIGINAL TANK BUT FEED INTO THE SECOND TANK IF THAT TANK IS FULL GASOLINE MAY SPILL OUT OF THE TANK THROUGH THE GASOLINETANK COVER FORD SAID IT WILL REPLACE THE FUEL PRESSURE REGULATOR AND INSTALL A CHECK VALVE TO BACK UP THE DEFECTIVE VALVE IN THE VEHICLE FORD SAID IT WOULDN'T BE FEASIBLE TO REPLACE THE EXISTING VALVE BECAUSE IT WOULD REQUIRE REPLACING THE ENTIRE FUEL MODULE DELIVERY SYSTEM FORD SAID A REVISED CHECK VALVE THAT'S MORE RESISTANT TO DAMAGE FROM HIGHER FUEL PRESSURE HAS BEEN INSTALLED IN THE 1994 MODEL VEHICLES FORD AND GM SAID ALL REPAIRS WILL BE MADE FREE OF CHARGE 9309280113 930928 POLITICS & POLICY CLINTON AT UN ASSAILS POISON' OF ISOLATIONISM PROTECTIONISM SCORED TOO BUT PRESIDENT APPEARS WARIER ON PEACEKEEPING BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRESIDENT CLINTON URGED THE WORLD'S NATIONS TO REJECT THE POISON OF PROTECTIONISM AND ISOLATIONISM BY FINDING WAYS TO MELD NATIONAL INTEREST AND COMMON GOALS BUT IN HIS FIRST SPEECH TO THE UNITED NATIONS GENERAL ASSEMBLY THE PRESIDENT ALSO SIGNALED INCREASED WARINESS ABOUT INTERNATIONAL PEACEKEEPING EFFORTS MR CLINTON EMPHASIZED THAT THE UN NEEDED TO SCRUTINIZE SITUATIONS MORE CAREFULLY AND DEFINE ITS MISSION MORE PRECISELY BEFORE COMMITTING TROOPS IF THE AMERICAN PEOPLE ARE TO SAY YES' TO UN PEACEKEEPING THE UNITED NATIONS MUST KNOW WHEN TO SAY NO' HE SAID WITH THE US AND MANY OTHER NATIONS TURNING INWARD IN THE POSTCOLD WAR PERIOD MR CLINTON SAID THE MOST EFFECTIVE WAY TO BOLSTER FREEMARKET DEMOCRACIES ABROAD IS BY REVITALIZING THE US ECONOMY AND EXPANDING WORLD TRADE AND THAT HIS ADMINISTRATION IS READY TO REMOVE OUTMODED INTERNATIONAL CONTROLS ON THE EXPORT OF CERTAIN TECHNOLOGIES AS NATIONS MOVE TO STOP WEAPONS PROLIFERATION TO OUTLAW STATES HE SAID THAT WITH DAUNTING ECONOMIC AND POLITICAL PRESSURES UPON ALMOST EVERY NATION REPRESENTED IN THIS ROOM MANY OF US ARE TURNING TO FOCUS GREATER ATTENTION AND ENERGY ON OUR DOMESTIC NEEDS AND PROBLEMS AND WE MUST BUT PUTTING EACH OF OUR ECONOMIC HOUSES IN ORDER CANNOT MEAN THAT WE SHUT OUR WINDOWS TO THE WORLD EVEN AS MR CLINTON WAS DISCUSSING HOW TO SELL FOREIGN ENGAGEMENT RESISTANCE WAS MOUNTING IN CONGRESS TO US INVOLVEMENT IN PEACEKEEPING AND EARLIER ENTHUSIASM WAS DECLINING EVEN AMONG MR CLINTON'S OWN ADVISERS FOR SUCH OPERATIONS ADMINISTRATION OFFICIALS HAVE EXPRESSED CONCERNS IN PRIVATE CONVERSATIONS ON CAPITOL HILL ABOUT A PEACEKEEPING FORCE IN BOSNIA TO WHICH THE US WOULD CONTRIBUTE ABOUT HALF OF A 50000MEMBER FORCE OFFICIALS ARE TRYING TO CONVINCE LAWMAKERS THAT THERE IS LITTLE CHOICE HOWEVER GIVEN THE CONCERNS ABOUT STARVATION IN BOSNIA AS WINTER SETS IN AND FEARS THAT LACK OF ACTION WOULD SEVERELY WEAKEN THE NORTH ATLANTIC TREATY ORGANIZATION'S SENSE OF ITS MISSION THE PRESIDENT ALSO ANNOUNCED THAT THE US WITHIN WEEKS WOULD PAY ITS PEACEKEEPING ARREARAGES TO THE UN WHICH TOTAL ABOUT 400 MILLION SENIOR OFFICIALS SAID BUT MR CLINTON ALSO SAID HE WANTS THE UN TO REDUCE WASHINGTON'S SHARE OF PEACEKEEPING COSTS THE US OFFICIALS SAID THE ADMINISTRATION WANTS THE US SHARE REDUCED TO 25 OF TOTAL PEACEKEEPING COSTS FROM 304 TO REFLECT THE ECONOMIC GROWTH OVER THE PAST TWO DECADES OF OTHER UN CONTRIBUTORS MR CLINTON ALSO FOCUSED ON PROPOSALS TO SLOW THE PROLIFERATION OF WEAPONS OF MASS DESTRUCTION AS EXPECTED THE PRESIDENT SAID THE US WOULD PUSH FOR AN INTERNATIONAL ACCORD BANNING PRODUCTION OF PLUTONIUM AND HIGHLY ENRICHED URANIUM FOR SUCH WEAPONS US OFFICIALS SAID AFTER MR CLINTON'S SPEECH THAT THEY WERE PARTICULARLY CONCERNED ABOUT THE PRODUCTION AND ACCUMULATION OF SUCH MATERIAL BY INDIA AND PAKISTAN THE OFFICIALS ALSO SAID THE US WOULD FOR THE FIRST TIME REDUCE ITS STOCKPILE OF THESE MATERIALS AND PERMIT SOME INTERNATIONAL INSPECTION THE US WHICH IS BUYING HIGHLY ENRICHED URANIUM FROM RUSSIA WOULD TRY TO PURCHASE THIS FISSILE MATERIAL FROM THE STOCKPILES OF OTHER NATIONS MR CLINTON ALSO CALLED FOR A STRENGTHENING OF CURBS ON BIOLOGICAL WEAPONS AND RULES ON THE TRANSFER OF MISSILE TECHNOLOGY IN THE MOST EMOTIONAL PART OF HIS 40MINUTE SPEECH MR CLINTON URGED THE WORLD TO INCREASE HUMANITARIAN EFFORTS SAYING THAT IT WAS UNFORGIVABLE THAT OVER THE PAST DECADE 40 MILLION CHILDREN DIED FROM DISEASES COMPLETELY PREVENTABLE WITH SIMPLE VACCINES OR MEDICINE 9309280112 930928 UPS TEAMSTERS IN ACCORD ON NEW LABOR AGREEMENT ATLANTA UNITED PARCEL SERVICE OF AMERICA INC AND THE TEAMSTERS UNION AGREED ON A FOURYEAR CONTRACT AFTER A WEEKEND OF MARATHON NEGOTIATIONS THE TWO SIDES AGREED ON A PACKAGE THAT PROVIDES FOR ANNUAL WAGE INCREASES OF ABOUT 3 IMPROVEMENTS IN PENSION AND HEALTHCARE BENEFITS AND REFORMS TO GRIEVANCE PROCEDURES A UPS SPOKESMAN SAID THE CONTRACT ALLOWS THE PRIVATELY HELD PACKAGE DELIVERER TO REMAIN COMPETITIVE ANALYSTS CAUTIONED HOWEVER THAT THE ADDED COSTS FOR UPS MAY RESULT IN HIGHER DELIVERY RATES FOR THE COMPANY'S CUSTOMERS IN THE FUTURE A UPS SPOKESMAN SAID THE COMPANY HAS NO PLANS TO INCREASE PRICES THE PACT PROVIDES FOR ADDITIONAL TEAMSTER JOBS ON THE COMPANY'S NEW THREEDAY GUARANTEED DELIVERY SERVICE RATHER THAN UPS SUBCONTRACTING OUT SUCH JOBS TO NONUNION WORKERS THE UNION SAID THE UNION ALSO SAID IT WON SEVERAL POINTS ON WORKPLACE ISSUES SUCH AS STRENGTHENING THE RIGHTS OF DISCIPLINED WORKERS AND GAINING 500 FULLTIME JOBS 9309280111 930928 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 3/8 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 3/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 119 DAYS 318 120 TO 179 DAYS 320 180 TO 239 DAYS 324 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 316 60 DAYS 317 90 DAYS CERTIFICATES OF DEPOSIT 254 ONE MONTH 256 TWO MONTHS 258 THREE MONTHS 275 SIX MONTHS 291 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 312 ONE MONTH 313 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 304 90 DAYS 313 120 DAYS 313 150 DAYS 313 180 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 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 3/8 3 1/4 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/16 THREE MONTHS 3 3/8 SIX MONTHS 3 9/16 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 656 JAPAN 375 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY SEPTEMBER 27 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 290 13 WEEKS 302 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 662 60 DAYS 669 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 662 60 DAYS 672 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 480 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 268 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9309280110 930928 MARKETING & MEDIA NEW YORK POST WORKERS GO ON STRIKE IMPERILING SALE NEW YORK THE LARGEST UNION AT THE NEW YORK POST WENT ON STRIKE YESTERDAY AND REPRESENTATIVES OF MEDIA BARON RUPERT MURDOCH SAID ANY DISRUPTION IN PUBLICATION WILL CAUSE HIM TO CANCEL HIS PLANNED PURCHASE OF THE PAPER A SPOKESMAN FOR THE NEWSPAPER GUILD WHICH REPRESENTS NEARLY 300 OF THE POST'S 700 EMPLOYEES INCLUDING REPORTERS AND CLERICAL AND ADVERTISING WORKERS SAID THE UNION STRUCK OVER THE ISSUE OF JOB SECURITY MANAGEMENT WANTS THE UNILATERAL RIGHT TO FIRE EMPLOYEES AT WILL FOR FOUR MONTHS SAID BILL MONTES BUSINESS AGENT FOR THE GUILD OBVIOUSLY WE COULDN'T GO ALONG WITH THAT MR MURDOCH'S NEWS CORP HAS BEEN OPERATING THE PAPER UNDER A MANAGEMENT AGREEMENT SINCE MARCH 29 AND WAS GIVEN FINAL APPROVAL FOR ITS 25 MILLION BID EARLIER THIS MONTH BY A BANKRUPTCY COURT EIGHT OTHER UNIONS REPRESENTING POST WORKERS HAVE RATIFIED CONTRACTS THAT PROMISE NEWS CORP SUBSTANTIAL COST SAVINGS A NINTH UNION REPRESENTING DRIVERS APPROVED A PACT BY VOICE VOTE THE SALE OF THE POST IS SET TO CLOSE ON FRIDAY BUT NEWS CORP EXECUTIVES SAID THE COMPANY WANTS ALL UNION CONTRACTS SETTLED BEFORE COMPLETING THE PURCHASE IF THE STRIKE SUCCEEDS IN STOPPING PUBLICATION OF THE PAPER SAID PATRICK PURCELL PRESIDENT OF NEWS CORP'S NEWS AMERICA PUBLISHING AND PUBLISHER OF THE POST WE'LL JUST WALK AWAY 9309280109 930928 MARKETING & MEDIA KOCH CONFIRMS MGM PLAN OWNER VOWS NOT TO SELL LOS ANGELES WILLIAM I KOCH CONFIRMED HIS INTENT TO PUT TOGETHER AN OFFER WITHIN THE NEXT 30 TO 60 DAYS TO PURCHASE ALL OR PART OF METROGOLDWYNMAYER INC BUT CREDIT LYONNAIS SA WHICH OWNS 985 OF MGM REITERATED ITS STANCE THAT THE MOVIE STUDIO ISN'T FOR SALE MR KOCH CHAIRMAN AND 40OWNER OF KENDALL SQUARE RESEARCH CORP CAMBRIDGE MASS AND PRESIDENT AND OWNER OF CLOSELY HELD OXBOW GROUP SAID IN A STATEMENT THAT HIS REPRESENTATIVES HAVE ALREADY CONTACTED EXECUTIVES AT CREDIT LYONNAIS BUT THAT HE IS AT A VERY PRELIMINARY STAGE IN THE PROCESS MR KOCH'S STATEMENT SAID HE IS INTERESTED IN MGM BOTH AS A TECHNOLOGY PLAY RELATED TO THE INCREASING INTERACTION BETWEEN MULTIMEDIA TECHNOLOGY COMPANIES AND HOLLYWOOD AND BECAUSE HE WANTS TO RETURN WHAT HE CALLS AN AMERICAN ICON' TO AMERICAN OWNERSHIP MR KOCH ADDED I PLAN TO EVALUATE THE DATA AND UNLESS I FIND SOME SNAKES IN THE WOODPILE MAKE AN OFFER 9309280108 930928 ECONOMY US AND EC FAIL TO SETTLE RIFT OVER AGRICULTURAL AID WASHINGTON THE US AND THE EUROPEAN COMMUNITY FAILED TO SETTLE A DISPUTE OVER AGRICULTURAL SUBSIDIES AS WORLD FINANCIAL OFFICIALS HERE WARNED THAT SUCH A STALEMATE COULD UNDERMINE THE GLOBAL ECONOMY YESTERDAY'S LACK OF PROGRESS IS THE LATEST BAD NEWS FOR NEGOTIATIONS ON AGRICULTURE ISSUES WHERE AN AGREEMENT MADE LAST NOVEMBER HAS BEEN UNRAVELING IN RECENT WEEKS MOREOVER THE DIFFICULTIES OVER AGRICULTURE SURFACE AS THE NEGOTIATIONS OVER ESTABLISHING A BROADER SET OF RULES COVERING INTERNATIONAL TRADE ENTERS WHAT IS SUPPOSED TO BE A FINAL STRETCH THE US AND EC PLAN TO END THE TALKS BY DEC 15 THERE WAS SOME EXTRA HOPE THAT THE TALKS WOULD BE PRODDED ALONG BY HIGHPROFILE PRESSURE FROM WORLD FINANCE MINISTERS AND OFFICIALS ASSEMBLED HERE YESTERDAY FOR A MEETING OF THE INTERNATIONAL MONETARY FUND THE WORLD BANK AND THE GENERAL AGREEMENT ON TARIFFS AND TRADE TOP OFFICIALS FROM THE GROUPS ISSUED A STATEMENT WARNING FAILURE TO CONCLUDE WOULD VALIDATE THE RISING WAVE OF PROTECTIONIST RHETORIC AND INCREASE THE DANGER OF A VICIOUS CIRCLE IN WHICH HEIGHTENED PROTECTIONISM IMPEDES ECONOMIC RECOVERY AND THE LACK OF RECOVERY IN TURN FEEDS PROTECTIONIST PRESSURE OFFICIALS SAID GATT DIRECTOR GENERAL PETER SUTHERLAND WAS ABLE TO ELEVATE THE WORLD TRADE TALKS TO AN UNUSUALLY HIGH LEVEL DURING THE MEETING WHICH IS CONTINUING THROUGH THIS WEEK 9309280107 930928 MARKETING & MEDIA ADVERTISING NRA IS DEFENDING AS EDUCATIONAL ITS CAMPAIGN TARGETING WOMEN BY KEVIN GOLDMAN STAFF REPORTER OF THE WALL STREET JOURNAL THE NATIONAL RIFLE ASSOCIATION IS TAKING AIM AT WOMEN IN NEW ADS APPEARING IN SOME OF THE NATION'S LARGEST GENERALCIRCULATION AND FEMALEORIENTED MAGAZINES THOUGH THE GUNLOBBYING ORGANIZATION CALLS THE CAMPAIGN AN EDUCATIONAL MESSAGE IT HAS OBVIOUS STRATEGIC VALUE THE LARGEST UNTAPPED MARKET FOR GUN MANUFACTURERS IS WOMEN SAYS CAMERON HOPKINS EDITOR OF AMERICAN HANDGUNNER MAGAZINE WOMEN PURCHASING GUNS IS GETTING MORE ACCEPTED AND THE NRA HAS BEEN TRYING TO ADVERTISE MORE IN NONTRADITIONAL MEDIA SO RATHER THAN SPECIALIZED GUN MAGAZINES THIS CAMPAIGN IS RUNNING IN REGIONAL EDITIONS OF PEOPLE FAMILY CIRCLE LADIES HOME JOURNAL REDBOOK WOMEN'S DAY WASHINGTONIAN TEXAS MONTHLY AND SOUTH FLORIDA THE ADVERTISEMENT DOESN'T URGE WOMEN TO PURCHASE HANDGUNS OR TO CONTRIBUTE TO ITS COFFERS THE NRA SAYS INSTEAD IT'S DESIGNED TO EDUCATE WOMEN ABOUT SELFDEFENSE BUT IT INVITES TELEPHONE RESPONSES TO A TOLLFREE NUMBER THUS ADDING TO THE NRA'S FUTURE MAILING LISTS FOR DIRECTMAIL CAMPAIGNS THE FOURPAGE COLOR AD TITLED HOW TO CHOOSE TO REFUSE TO BE A VICTIM WAS PRODUCED BY AN NRA SUBCOMMITTEE KNOWN AS THE WOMEN OF THE NATIONAL RIFLE ASSOCIATION WHICH UNTIL NOW HAS ONLY ADVERTISED IN GUNTRADE MAGAZINES NOW ITS ADVERTISING IS MOVING INTO THE LIVING ROOMS OF ORDINARY CITIZENS AS PART OF A MULTIMEDIA BLITZ IN THREE TEST MARKETS HOUSTON MIAMI AND WASHINGTON DC IF THE EIGHTWEEK TEST GOES WELL THE NRA SAYS IT PLANS TO ROLL OUT THE CAMPAIGN NATIONWIDE TWO MAGAZINES GOOD HOUSEKEEPING AND BETTER HOMES AND GARDENS REJECTED THE ADVERTISEMENT SAYS TANYA K METAKSA CHAIRWOMAN OF THE NRA'S WOMEN'S POLICY COMMITTEE IN WASHINGTON NEITHER PUBLICATION RETURNED CALLS SEEKING COMMENT ALTHOUGH MS METAKSA SAYS GOOD HOUSEKEEPING AS A MATTER OF POLICY DOESN'T ACCEPT ADS FROM ANY FIREARM ALCOHOL OR TOBACCO COMPANY THE AD USES A TACTIC RARELY EMPLOYED BY THE NRA IT PLAYS ON WOMEN'S FEAR OF CRIME IT USES A SINISTER PHOTOGRAPH ON ITS TITLE PAGE OF A WOMAN WALKING WITH HER YOUNG DAUGHTER THROUGH A DARK UNDERGROUND GARAGE THE MOTHER CLUTCHING HER DAUGHTER'S HAND GLANCES OVER HER SHOULDER WITH A FEARFUL EXPRESSION THE PAGES THAT FOLLOW FEATURE ACTRESS SUSAN HOWARD WHO APPEARED ON DALLAS PHOTOGRAPHED IN A DEFIANT POSE UNDER THE HEADLINE I REFUSE TO BE A VICTIM YOU CAN TOO THE AD WHICH WARNS IF YOU DON'T HAVE A PLAN YOU WON'T HAVE A CHANCE URGES WOMEN TO CALL THE TOLLFREE NUMBER TO INQUIRE ABOUT JOINING CRIMESTRIKE DESCRIBED AS THE NRA'S GRASSROOTS MOVEMENT TO RESTORE TOUGH JUSTICE IN OUR CRIMINAL JUSTICE SYSTEM YOU WILL NOT BE ENCOURAGED TO OWN A GUN OR ASKED TO JOIN THE NRA TO GET THE HELP YOU NEED IT CONCLUDES THE NRA DOES NOT ADVOCATE FIREARM OWNERSHIP WE ONLY ADVOCATE YOUR CONSTITUTIONAL RIGHT TO CHOOSE WHETHER TO LAWFULLY OWN A GUN WOMEN FOR THE NRA IS ALSO PLACING TELEVISION ADVERTISEMENTS IN THE HOUSTON MARKET THAT FEATURE THE SAME WOMANANDDAUGHTERINAGARAGE SCENARIO THE COMMERCIAL IS SHOT FROM THE CHILD'S POINT OF VIEW THE MOTHER DROPS HER CAR KEYS AND LOOKS AROUND WHILE SHE RETRIEVES THEM WHAT'S WRONG THE WORRIED CHILD INQUIRES THE ACTION THEN SWITCHES TO MS HOWARD WHO TALKS ABOUT HER REFUSAL TO BE VICTIMIZED HOUSTON WAS CHOSEN TO TEST THE TELEVISION ADS SAYS MS METAKSA BECAUSE RESEARCH SHOWED THE TEXAS CITY AS ONE WITH HIGH CRIME AND HIGH APPREHENSION AMONG WOMEN THE NRA MAY BE TALKING TO A RECEPTIVE AUDIENCE ALTHOUGH GUN MANUFACTURERS DON'T RELEASE SALES FIGURES ONE INDUSTRY ESTIMATE IS THAT APPROXIMATELY 25 MILLION WOMEN OWN GUNS THAT IS UP FROM 12 MILLION TO 14 MILLION IN THE LATE 1980S THERE ARE EVEN GUNS DESIGNED ESPECIALLY FOR WOMEN SUCH AS LADY SMITH FROM SMITH & WESSON A SUBSIDIARY OF FH TOMKINS OF GREAT BRITAIN THE NEW AD BLITZ FROM THE WOMEN OF THE NRA DOESN'T SURPRISE THE NRA'S CRITICS THE PRIMARY MARKET FOR GUNS IS SATURATED SAYS JOSH SUGARMANN EXECUTIVE DIRECTOR OF THE VIOLENCE POLICY CENTER A WASHINGTONBASED ORGANIZATION THAT STUDIES VIOLENCE PREVENTION THE PITCH TO WOMEN IS ALWAYS SELFDEFENSE WHICH PREYS ON THE POPULATION'S FEAR OF CRIME HE SAYS THE PROBLEM WITH THE NRA CONTINUES MR SUGARMANN IS THAT IT NEEDS A WAY TO BREAK INTO THE GENERAL POPULATION AND THIS IS THE QUICKEST WAY THE NRA'S MS METAKSA SAYS THE CRITICISM IS UNJUSTIFIED WE HAVE A PROGRAM WE THINK IS OF INTEREST AND SHOULD BE KNOWN ABOUT OTHERS AGREE THE CAMPAIGN SHOWS THAT WOMEN HAVE A CHOICE AND DON'T HAVE TO BE A VICTIM SAYS JULIANNE VERSNEL GOTTLIEB PUBLISHER OF THE MONTHLY MAGAZINE WOMEN & GUNS PUBLISHED BY THE SECOND AMENDMENT FOUNDATION A GROUP IN BELLEVUE WASH THE MAGAZINE'S GROWTH SUGGESTS THE RECENT SURGE OF INTEREST AMONG WOMEN IN GUN OWNERSHIP THE PUBLICATION BEGAN NEARLY FIVE YEARS AGO WITH EIGHT PAGES AND A MINUSCULE CIRCULATION IT NOW BOASTS A CIRCULATION OF 25000 AND IS SOLD ON NEWSSTANDS THERE ARE MANY WAYS A WOMAN CAN PROTECT HERSELF SAYS MS GOTTLIEB AND ONE WAY IS OWNING AND CARRYING A HANDGUN SOME MAGAZINES CONCEDE THAT THE AD WAS ACCEPTED ONLY AFTER INTERNAL DISCUSSION FOR EXAMPLE LADIES HOME JOURNAL GAVE THE GREEN LIGHT AFTER ITS EDITORIAL STAFF WAS CONVINCED THAT ITS READERS WOULDN'T HAVE A PROBLEM SAYS MICHAEL BROWNSTEIN THE MAGAZINE'S ADVERTISING DIRECTOR SINCE IT HAS A SAFETYBASED MESSAGE WE THOUGHT THAT WAS A RESPONSIBLE PLATFORM AND TEXAS MONTHLY PUBLISHER MICHAEL R LEVY SAYS THE AD WHICH APPEARS IN THE OCTOBER ISSUE PASSED HIS SELFDESCRIBED LITMUS TEST THE STAFF DIDN'T REBEL THEIR REACTION WAS NEUTRAL TO POSITIVE I EXPECTED SOME NEGATIVE CALLS FROM READERS AND RECEIVED NONE CARL'S JR THE ANAHEIM CALIF FASTFOOD CHAIN DISMISSED OMNICOM GROUP'S GOODBY BERLIN & SILVERSTEIN A SAN FRANCISO AGENCY AND PUT ITS 25 MILLION ACCOUNT INTO REVIEW A SPOKESMAN FOR CARL'S JR A UNIT OF CARL KARCHER ENTERPRISES SAID THE DECISION TO PART WAYS WAS MUTUAL THE MARKETING DIRECTION OF THE COMPANY HAS CHANGED HE SAID GOODBY'S PRESIDENT COLIN PROBERT AGREED WE HAVEN'T DONE ANY WORK WE'VE BEEN HAPPY WITH IN SEVERAL MONTHS FOR CARL'S JR A FORMAL REVIEW PROCESS IS EXPECTED TO GET UNDER WAY THIS WEEK THE CARL'S SPOKESMAN SAID CALET HIRSCH & FERRELL NEW YORK SAID TWO OF ITS TOP MANAGERS HAVE REACHED A AGREEMENT TO BUY OUT THE SHOP FROM ITS PARENT AGENCY ROSS ROY GROUP BLOOMFIELD HILLS MICH CALET'S MOST PROMINENT CLIENT KMART WON'T REMAIN WITH THE NEWLY INDEPENDENT SHOP INSTEAD MOVING ITS 40 MILLION IN BILLINGS TO THE PARENT ROSS ROY ANOTHER SHOWCASE CLIENT STOLICHNAYA VODKA WITH ESTIMATED BILLINGS OF 5 MILLION HAS STARTED A REVIEW ACCORDING TO A SPOKESMAN FOR MONSIEUR HENRI WINE IMPORTER OF STOLI AND OTHER BRANDS MARKETED BY PEPSICO TERMS OF THE AGREEMENT COULDN'T BE LEARNED THE NEW AGENCY STILL UNNAMED WOULD HAVE BILLINGS OF ABOUT 85 MILLION SAID RIC CALVILLO CALET CHAIRMAN AND CHIEF EXECUTIVE OFFICER SEGA PITCH THE LOS ANGELES OFFICE OF LORD DENTSU & PARTNERS DROPPED OUT OF THE PITCH FOR SEGA OF AMERICA'S 8 MILLION TO 10 MILLION CHILDREN'S ACCOUNT RESOLVING A CONFLICT ARISING FROM LORD DENTSU'S PURSUIT OF SEGA WHILE ITS SISTER AGENCY BOWES DENTSU & PARTNERS HANDLES DIRECT MARKETING FOR SEGARIVAL NINTENDO YOUNG & RUBICAM'S SAN FRANCISCO OFFICE REMAINS IN THE PITCH AS DO INTERPUBLIC GROUP'S MCCANNERICKSON AND OMNICOM'S GOODBY BERLIN 9309280106 930928 WHO'S NEWS BOWMAN PLANS TO LEAVE CALPERS POST IN JANUARY SPECIAL TO THE WALL STREET JOURNAL DEWITT BOWMAN THE CHIEF INVESTMENT OFFICER OF THE COUNTRY'S LARGEST PUBLIC PENSION FUND IS RETIRING AFTER FIVE YEARS OF HELPING TO ESTABLISH THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AS A LEADER IN SHAREHOLDER ACTIVISM MR BOWMAN 63 YEARS OLD PLANS TO RETIRE AT THE END OF JANUARY BUT WILL CONTINUE AS A CONSULTANT TO THE FUND AFTER FIVE YEARS OF 12HOUR WORKDAYS THE PRESSURES OF BEING THE HUGE FUND'S MONEY MANAGER HAD BECOME EXHAUSTING I WAS WORKING LONG AND HARD AND I WANTED TO SLOW DOWN MR BOWMAN SAID DURING HIS TENURE HE HELPED CALPERS'S INVESTMENT PORTFOLIO GROW TO 79 BILLION FROM 45 BILLION CALPERS OVERSEES THE PENSION SAVINGS OF MORE THAN 900000 CURRENT AND FORMER CALIFORNIA EMPLOYEES MR BOWMAN WAS RESPONSIBLE FOR MOVING THE FUND INTO FOREIGN INVESTING FOREIGN STOCKS AND BONDS NOW ACCOUNT FOR 16 OF ITS ASSETS UNDER HIS MANAGEMENT THE FUND ALSO BEGAN INVESTING IN ALTERNATIVE ASSETS INCLUDING VENTURE CAPITAL PROJECTS CALPERS HAS BEEN A LEADER IN THE MOVEMENT IN WHICH LARGE INVESTORS VOICED THEIR OPINIONS OVER COMPANY MANAGEMENT IT PRESSED FOR CHANGES IN SUCH COMPANIES AS GENERAL MOTORS CORP WESTINGHOUSE ELECTRIC CORP AND SEARS ROEBUCK & CO 9309280105 930928 LETTERS TO THE EDITOR WHO'S AFRAID OF PATRICK BUCHANAN THAT YOU SHOULD PUBLISH AN ATTACK ON CONSERVATIVES WHO OPPOSE NAFTA GOP NAFTA CHOICE REAGAN OR SMOOTPEROT POTOMAC WATCH SEPT 17 THE SAME DAY YOU TURN OVER YOUR LEAD EDITORIAL TO BILL CLINTON IS NOT SURPRISING BUT PAUL GIGOT DID A REMARKABLE JOB OF POSITIONING THE JOURNAL IN THIS DEBATE BY ATTACKING THE GOOD FAITH OF THE CHRISTIAN COALITION HOUSE REPUBLICAN FRESHMEN AND PATRICK J BUCHANAN MR GIGOT PUT YOUR PAPER IN BED WITH BILL CLINTON TALKING DIRT LIKE JIMMY CARTER GOP AND CONSERVATIVE SUPPORT FOR NAFTA HE WRITES HAS BEEN LEACHING IN THE FACE OF POLITICAL DEMAGOGUERY WHO ARE THE DOLTS WHO HAVE FALLEN FOR THIS DEMAGOGUERY THE CHRISTIAN COALITION WAS ONCE GOING TO OFFER AT LEAST MODEST SUPPORT FOR NAFTA MR GIGOT EXPLAINS THEN IT DECIDED TO SIT ON ITS HANDS AMID PRIVATE GRUMBLING ABOUT TRILATERAL COMMISSIONS AND OTHER GLOBAL CONSPIRACIES UH HUH SO PAUL GIGOT THINKS THE CHRISTIAN COALITION ARE KOOKS AND WHO ELSE HAS FALLEN FOR DEMAGOGUERY AN INFORMAL POLL OF THE 47 HOUSE GOP FRESHMEN THIS WEEK SHOWED ONLY ABOUT 40 IN FAVOR OF NAFTA 20 OPPOSED AND 40 NEUTRAL HE SIGHS MANY OF THEM HAVE BEEN SPOOKED BY ROSS PEROT SO WE HAVE IT AN EDITORIAL PAGE THAT HAS STUDIOUSLY AVOIDED TAKING UNAMBIGUOUS STANDS ON THE TOUGH SOCIAL ISSUES LIKE THE RIGHTTOLIFE OF UNBORN BABIES SLIGHTS THE COMMITMENT TO PRINCIPLE OF THE CHRISTIAN COALITION WHOSE LEADERS HAVE NEVER WAVERED ON THE MORAL BOTTOM LINE AN EDITORIAL PAGE THAT POSTURES AS THE CHAMPION OF TERM LIMITS CHIDES HOUSE FRESHMEN FOR FOLLOWING THEIR HEARTS AND THE INTERESTS OF THEIR HOMETOWNS RATHER THAN THE HOARY HOUSE LEADERSHIP OF THE GOP SO MUCH FOR THE PEOPLE'S ORACLE OF LOWER MANHATTAN BALONEY AT AN AUG 26 PRESS CONFERENCE MR BUCHANAN SAID WHY SHOULD THE AMERICAN PEOPLE BE RESPONSIBLE FOR CLEANING UP THE PIGPEN THAT THE MEXICANS HAVE MADE ON THEIR SIDE OF OUR COMMON BORDER MR GIGOT LIFTED THOSE TWO WORDS OUT OF CONTEXT THE FACTUAL PREMISE OF MR BUCHANAN'S QUESTION THAT THE MEXICAN SIDE OF THE USMEXICAN BORDER IS A PIGPEN MAY WELL HAVE BEEN BASED ON REPORTING IN THE WALL STREET JOURNAL THE JOURNAL REPORTED LAST AUG 17 FOR EXAMPLE THAT THE AMERICAN MEDICAL ASSOCIATION DAMNS THE BORDER AS A VIRTUAL CESSPOOL' BECAUSE OF SCANT INFRASTRUCTURE AND LAX ENVIRONMENTAL CONTROLS ON THE MAQUILADORAS BUT MR GIGOT DOES MORE THAN CLIP QUOTES IN GOING AFTER MR BUCHANAN'S REPUTATION HE GOES SO FAR AS TO INFER MR BUCHANAN IS NOT A MAN OF PRINCIPLE WHICH IS DOUBLY IRONIC IT IS IRONIC BECAUSE MR BUCHANAN IS THE CONSERVATIVE MOST FEARED BY LIBERALS PRECISELY BECAUSE HE IS SO COURAGEOUSLY PRINCIPLED AND IT IS IRONIC BECAUSE MR GIGOT FEARS MR BUCHANAN FOR THE SAME REASON THE LIBERALS DO THE REAL AGENDA OF MR PEROT PAT BUCHANAN AND OTHER ENEMIES OF NAFTA ON THE RIGHT SAYS MR GIGOT IS TO SHOW THEY CAN SET THE AGENDA FOR REPUBLICANS AS WELL AS FOR CONSERVATIVES THROUGH 1994 AND BEYOND THIS IS THE MOST REASONABLE POINT MR GIGOT MAKES BUT LOOKING THROUGH HIS EYES THAT MUST MEAN HE THINKS THERE ARE LOTS OF DOLTS OUT THERE IN AMERICA YOU KNOW FOLKS WHO THINK LIKE THE CHRISTIAN COALITION OR HOUSE REPUBLICAN FRESHMAN 9309280104 930928 TWO PRIVATE CONCERNS PAY OVER 40 MILLION FOR 4 HOUSTON HOTELS DALLAS PATRIOT AMERICAN GROUP AND GENCOM INTERESTS INC SAID THEY ACQUIRED THREE HOTELS NEAR THE HOUSTON ASTRODOME STADIUM FROM FORMER PRINCIPALS OF THE HOUSTON SPORTS ASSOCIATION WHICH FORMERLY OWNED THE HOUSTON ASTROS BASEBALL TEAM AND HELD THE LEASE ON THE ASTRODOME THOUGH TERMS WERE NOT DISCLOSED A PERSON INVOLVED SAID THE TWO PRIVATELY HELD CONCERNS WILL HAVE PAID IN EXCESS OF 40 MILLION FOR THE SHERATON ASTRODOME HOTEL THE HOLIDAY INN ASTRODOME AND A DAYS INN HOTEL AS WELL AS A NEARBY 200ROOM HOTEL THAT FOURTH ACQUISITION IS EXPECTED TO BE COMPLETED NEXT MONTH PATRIOT AMERICAN A DALLASBASED REALTY INVESTMENT GROUP SAID IT MADE THE ACQUISITIONS ON BEHALF OF A MAJOR INSTITUTIONAL INVESTOR WHOM IT WOULDN'T IDENTIFY IT SAID ALL THE THREE ACQUIRED HOTELS WILL MAINTAIN THEIR CURRENT AFFILIATIONS BUT WILL BE MANAGED BY GENCOM'S AMERICAN HOSPITALITY UNIT PATRIOT AMERICAN AND GENCOM A HOUSTONBASED HOTEL OWNER AND OPERATOR PREVIOUSLY BOUGHT TWO NEW ORLEANS HOTELS A CLARION AND THE BOURBON ORLEANS AS WELL AS HOLIDAY INN UNITS IN KERRVILLE AND SAN ANGELO TEXAS PATRIOT FORMED IN 1991 HAS ACQUIRED 36 PROPERTIES INCLUDING NINE HOTELS IN THE PAST TWO YEARS IN MANY CASES BUYING PROPERTIES FROM THE RESOLUTION TRUST CORP 9309280101 930928 SMALL STOCK FOCUS SMALLCOMPANY STOCKS CONTINUE RALLY AS LONGTERM INTEREST RATES DECLINE BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A SHARP DROP IN LONGTERM INTEREST RATES AND ACROSSTHEBOARD BUYING DROVE SMALLCOMPANY STOCKS TO RECORD LEVELS IN A FOLLOWTHROUGH TO FRIDAY'S RALLY THE RUSSELL 2000 INDEX WHICH MEASURES SMALLCAPITALIZATION STOCKS TRADED OVER THE COUNTER AND ON THE MAJOR EXCHANGES EDGED UP 125 POINTS OR 050 TO FINISH AT 24999 ABOVE ITS RECORD CLOSE OF 24872 FRIDAY ON NASDAQ THE NASDAQ COMPOSITE INDEX ALSO SKIPPED TO A THIRD STRAIGHT RECORD OF 75995 UP 530 POINTS OR 070 BREAKING THROUGH FRIDAY'S RECORD HIGH CLOSING PATRICK DAVIS MANAGER OF OTC TRADING AT SALOMON BROTHERS SAID SOME LARGER TECHNOLOGY ISSUES PULLED THE REST OF THAT GROUP UP WITH MICROSOFT AND CISCO SYSTEMS LEADING THE PACK BOTH COMPANIES' SHARES JUMPED MORE THAN 2 POINTS ALSO INACOM OF OMAHA NEB ROSE 2 TO 18 ZYCAD OF MENLO PARK CALIF 3/8 TO 3 1/2 AND PERCEPTRON OF FARMINGTON HILLS MICH 7/8 TO 9 1/4 THE WHOLE TONE OF THE MARKET WAS STRONGER MR DAVIS SAID AND SMALLER STOCKS MOVED HIGHER IN A CARRYOVER AFTER BOUNCING UP PRETTY HARD LATE LAST WEEK LONGTERM TREASURY YIELDS FELL BACK BELOW 6 AFTER THE BONDS ROSE MORE THAN A FULL POINT TODAY INTEREST RATES DROPPED FOLLOWING FRIDAY'S NEWS THAT THE FEDERAL RESERVE VOTED LAST MONTH TO STOP LEANING TOWARD TIGHTENING MONETARY POLICY BUT ASIDE FROM YESTERDAY'S BOND STRENGTH ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS THINKS STOCKS ARE IN THE MIDST OF THE CONTINUATION OF THE BULL MARKET THAT BEGAN TWO YEARS AGO MR GOLDMAN ADDED THESE LONGTERM SECULAR BULL MARKETS BAFFLE EVEN THE BULLS BECAUSE OF THEIR PERSISTENT STRENGTH THE TECHNICIAN SAID THAT DESPITE THE FACT THAT LARGER STOCKS AS MEASURED BY THE DOW JONES INDUSTRIAL AVERAGE ALSO PERFORMED WELL YESTERDAY MORE AND MORE MONEY IS ATTRACTED TO SMALLCAP COMPANIES THE ANALYST ALSO SAID INVESTORS REALIZE THAT THE ECONOMY WILL GROW BUT PROBABLY NOT BY LEAPS AND BOUNDS ANY TIME SOON THIS IS CAUSING MONEY TO POUR INTO STOCKS THAT HAVE THE ABILITY TO OUTPERFORM THE GROSS DOMESTIC PRODUCT WHICH TEND TO BE THOSE FOUND IN THE RUSSELL 2000 MR GOLDMAN SAID THE DOW JONES INDUSTRIALS MOVED 2459 POINTS OR 069 HIGHER TO FINISH AT 356770 ADVANCING NASDAQ ISSUES LED LOSERS 1597 TO 1281 NASDAQ NATIONAL MARKET VOLUME TOTALED 225647500 SHARES DOWN SLIGHTLY FROM THE 258148600 SHARES THAT CHANGED HANDS ON FRIDAY AFTER THE MARKET CLOSED UNDERWRITERS LED BY MORGAN STANLEY PRICED AN INITIAL PUBLIC OFFERING OF BARNES & NOBLE COMMON STOCK ON THE NEW YORK STOCK EXCHANGE AT 20 A SHARE THE 8235 MILLION SHARES WERE OFFERED ABOVE THE BOOK STORE CHAIN'S ORIGINAL EXPECTATIONS OF BETWEEN 16 AND 18 EACH IN YESTERDAY'S ACTION BANKING ISSUES WERE STRONG FOLLOWING SURGING BOND PRICES CALIFORNIA FEDERAL BANK'S NYSE CLASS A SHARES FOR INSTANCE CLIMBED 1 1/2 TO 14 3/8 THE COMPANY'S BOARD REPORTEDLY IS EXPLORING WAYS TO BOOST THE BANK'S STOCK PRICE OPTIONS INCLUDE A SALE OF THE SAVINGS BANK OR A POSSIBLE BULK SALE OF ITS NONPERFORMING ASSETS LESLIE FAY NYSE SLUMPED 5/8 TO 2 7/8 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT A SOONTOBERELEASED INTERNAL REPORT ON THE ACCOUNTING SCANDAL AT THE COMPANY WILL SHOW THAT THE FRAUD WAS MORE PERVASIVE THAN PREVIOUSLY INDICATED AND WILL RESULT IN LARGER LOSSES THAN IT PREDICTED PEOPLE INVOLVED IN THE INVESTIGATION SAY THE NEW YORKBASED RETAILER DESIGNS AND MAKES WOMEN'S CLOTHING HOSPITALITY FRANCHISE SYSTEMS NYSE JUMPED 4 TO 43 3/8 THE PARSIPPANY NJ LICENSOR OF HOTEL BRAND NAMES SAID IT HAS BEGUN FRANCHISING CASINOS AND PROVIDING MARKETING SERVICES TO CASINO OPERATORS BOOMTOWN OF VERDI NEV SLID 3 1/4 TO 22 3/4 ALTHOUGH THE COMPANY GAINED APPROVAL YESTERDAY FROM THE LOUISIANA RIVERBOAT GAMING COMMISSION TO RELOCATE ITS PLANNED RIVERBOAT GAMING OPERATIONS TO A LARGER SITE NEAR NEW ORLEANS BOOMTOWN SAID IT WILL TAKE A TWOCENTSASHARE CHARGE TO EARNINGS ON THE MOVE ALSO HANCOCK INSTITUTIONAL EQUITY SERVICES LOWERED ITS RATING TO NEUTRAL FROM BUY BOOMTOWN'S VOLUME WAS ABOUT 18 MILLION SHARES MORE THAN NINE TIMES THE AVERAGE DAILY NUMBER ACX TECHNOLOGIES ADDED 3/4 TO 34 3/4 BARRON'S REPORTED THAT THE POTENTIAL FOR SHARPLY HIGHER NET INCOME IS THE LURE THAT HAS DRIVEN THE GOLDEN COLO COMPANY TO BET HEAVILY ON A NEW MILL IN SAN ANTONIO TEXAS TO MAKE ALUMINUM SHEET FOR BEVERAGE AND FOOD CANS A WEAKER FISCAL FOURTHQUARTER OUTLOOK SENT TEXFI INDUSTRIES NYSE FALLING 1 TO 3 3/4 THE RALEIGH NC COMPANY EXPECTS TO POST A LOSS IN THE QUARTER ENDING OCT 31 BELOW ANALYSTS' ESTIMATES OF 13 CENTS TO 27 CENTS A SHARE TEXFI EARNED 23 CENTS IN THE YEAREARLIER PERIOD COMMUNICATIONS ISSUES STRENGTHENED BYTEX OF WESTBOROUGH MASS LEAPED 2 3/8 OR 594 HIGHER TO 6 3/8 MINNEAPOLISHEADQUARTERED NETWORK SYSTEMS WHICH INCHED UP 1/4 TO 7 7/8 SAID IT WILL ACQUIRE ALL OF BYTEX'S COMMON STOCK OUTSTANDING FOR 680 A SHARE OR ABOUT 47 MILLION THE BOARDS OF BOTH COMPANIES APPROVED THE DEAL IN THE HEALTH CARE GROUP TWO BOUTS OF BAD NEWS CAUSED CHEMTRAK'S STOCK PRICE TO SLIDE 1 3/4 TO 4 1/2 THE SUNNYVALE CALIF MAKER OF DISPOSABLE MEDICAL DIAGNOSTIC TESTS SAID IT EXPECTS THAT ITS THIRDQUARTER REVENUE FELL BELOW ANALYSTS' FORECASTS ALSO AMERICAN HOME PRODUCTS HAS DECIDED NOT TO DISTRIBUTE CHEMTRAK'S ACCUMETER TOTAL CHOLESTEROL TEST IN THE US EFFECTIVELY TERMINATING A MARKETING AGREEMENT BETWEEN THE COMPANIES AMERICAN HOME PRODUCTS NYSE SLIPPED 1/4 TO 62 ACTON AMEX OF RALEIGH NC SHOT 4 3/8 OR 875 HIGHER TO 9 3/8 THE COMPANY SAID THE PREVIOUSLY REPORTED SALE OF ITS CABLE TELEVISION ASSETS IN ANNE ARUNDEL COUNTY MD IS EXPECTED TO PROVIDE ABOUT 694 MILLION OF CASH 9309280100 930928 COMMONWEALTH EDISON OFFERS REFUND RATE CUT TO SETTLE NUCLEAR LITIGATION BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL COMMONWEALTH EDISON CO THE NATION'S BIGGEST NUCLEAR UTILITY AGREED TO A 134 BILLION CUSTOMER REFUND AND A 339 MILLION ANNUAL RATE REDUCTION FOLLOWING FINDINGS THAT IT MASSIVELY OVERBUILT NUCLEAR PLANTS IF APPROVED BY ILLINOIS COURTS THE SETTLEMENT AGREEMENT BY THE BIG CHICAGOBASED UTILITY AND CONSUMER GROUPS WOULD BE THE LARGEST ELECTRICRATE REFUND EVER JOHN C BUKOVSKI THE COMPANY'S CHIEF FINANCIAL OFFICER PROJECTED THE DEAL WILL MEAN A CHARGE TO NET INCOME OF 350 MILLION OR 164 A SHARE PROBABLY IN THIS YEAR'S FOURTH QUARTER THE AVERAGE RESIDENTIAL SINGLE FAMILY CUSTOMER WOULD SAVE 272 IN UTILITY BILLS OVER 12 MONTHS THROUGH THE RATE REDUCTION AND THE REFUND WHICH WILL BE SPREAD OVER A YEAR MORE BROADLY THE AGREEMENT COULD FURTHER DISCOURAGE CONSTRUCTION OF LARGESCALE NUCLEAR AND EVEN COALPOWERED GENERATING STATIONS CONSUMER ADVOCACY GROUPS CONTEND THE DEAL TENTATIVELY BRINGS TO A CLOSE ALMOST A DECADE OF LABYRINTHINE LITIGATION OVER THE COMPANY'S BRAIDWOOD AND BYRON NUCLEAR PLANTS IN A SERIES OF LAWSUITS THE CONSUMER GROUPS AND ILLINOIS AND CHICAGO OFFICIALS HAD CONTENDED THE MULTIBILLIONDOLLAR REACTORS WERE LARGELY UNNECESSARY AND THAT THE CONSTRUCTION OF BRAIDWOOD ENTAILED HUNDREDS OF MILLIONS OF DOLLARS IN COST OVERRUNS IN A REGULATORY DECISION IN JANUARY THE ILLINOIS COMMERCE COMMISSION AGREED WITH THE BULK OF THOSE CONTENTIONS IT ORDERED THE UTILITY TO MAKE A 600 MILLION REFUND TO CUSTOMERS AN AMOUNT THE UTILITY HAD CONSIDERED APPEALING UNTIL YESTERDAY WALL STREET REACTED FAVORABLY TO THE APPARENT END TO YEARS OF REGULATORY UNCERTAINTY YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE UTILITY'S SHARES CLOSED AT 31125 UP 875 CENTS ON VOLUME OF 934500 SHARES BIG NEW NUCLEAR AND COAL PLANTS ARE A RISKY VENTURE SAID HOWARD LEARNER CHIEF CONSUMER NEGOTIATOR IN THE CASES AND AN ATTORNEY WITH CHICAGO'S BUSINESS AND PROFESSIONAL PEOPLE IN THE PUBLIC INTEREST THIS SHOULD SERVE AS A STRONG FINANCIAL SIGNAL TO UTILITIES AND WALL STREET THAT MEETING POWER NEEDS THROUGH OTHER MEANS LIKE RENEWABLE RESOURCES AND DEMANDSIDE MANAGEMENT IS ENVIRONMENTALLY PREFERABLE AND LESS RISKY MR BUKOVSKI SAID THERE IS A REASONABLE OPPORTUNITY FOR EDISON TO BE ABLE TO MEET PAYING ITS COMMONSTOCK DIVIDEND OF 160 ANNUALLY THE UTILITY SLASHED ITS DIVIDEND 47 LAST SEPTEMBER HE SAID HE ALSO WILL BEGIN MEETING THIS WEEK WITH CREDITRATING SERVICES IN AN EFFORT TO IMPROVE THE COMPANY'S DEBT RATINGS WHICH HAVE SUNK DUE TO UNCERTAINTY ABOUT RATE CASES AND RELATED LAWSUITS CONSUMER GROUPS AND ILLINOIS AND CHICAGO OFFICIALS HAD REGULARLY PREVAILED IN RATE LITIGATION ON RATE ISSUES RELATED TO THE BRAIDWOOD PLANT NEAR JOLIET ILL AND THE BYRON FACILITY NEAR ROCKFORD ILL ON FOUR OCCASIONS THE MATTER REACHED THE ILLINOIS SUPREME COURT IN JANUARY'S COMMERCE COMMISSION REBATE ORDER THE STATE UTILITY AGENCY FOUND THAT NEITHER OF TWO BRAIDWOOD REACTORS WAS NECESSARY TO MEET THE NEEDS OF ILLINOIS CONSUMERS DURING MOST OF THE YEARS AT ISSUE THE BYRON REACTOR UNDER DISPUTE WAS FOUND MOSTLY UNNECESSARY IN 1987 AND 1988 BUT 93 USEFUL TO CUSTOMERS BY 1991 FURTHER THE COMMISSION DECIDED 500 MILLION OF THE 52 BILLION CONSTRUCTION COST OF BRAIDWOOD CONSISTED OF OVERRUNS THAT SHOULDN'T BE BILLED TO THE UTILITY'S CUSTOMERS MR BUKOVSKI CONTENDED THAT RECENT ELECTRICITY USAGE INCREASES SHOULD ENABLE THE UTILITY TO OBTAIN RATE INCREASES FOR WHICH THE COMPANY WILL APPLY STARTING IN DECEMBER SETTLEMENT TALKS LEADING TO YESTERDAY'S DEAL BEGAN AT A FEBRUARY BREAKFAST MEETING AT THE PRIVATE CHICAGO CLUB INVOLVING MR LEARNER AND SAMUEL K SKINNER THE NEW PRESIDENT OF COMMONWEALTH EDISON WHO HAD SERVED AS WHITE HOUSE CHIEF OF STAFF IN THE BUSH ADMINISTRATION THEY AND RANDALL E ROBERTSON A GRANITE CITY ILL ATTORNEY FOR BIG CORPORATE CUSTOMERS OF THE UTILITY CONTINUED THE TALKS DURING REGULAR SESSIONS AT THE COMPANY'S CHICAGO OFFICES BEFORE THEY LED TO MARATHON DRAFTING SESSIONS IN RECENT WEEKS 9309280099 930928 WHO'S NEWS ENERGY BIOSYSTEMS CORP ENERGY BIOSYSTEMS CORP THE WOODLANDS TEXAS JOHN H WEBB PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS BIOTECHNOLOGY COMPANY MR WEBB 44 YEARS OLD SUCCEEDS WILLIAM M HANEY 31 AS CHAIRMAN MR HANEY WHO IS CHAIRMAN AND CHIEF EXECUTIVE OF WALTHAM MASSBASED MOLTEN METAL TECHNOLOGY INC WILL REMAIN A MEMBER OF ENERGY BIOSYSTEMS' BOARD 9309280098 930928 TEXAS SEN HUTCHISON TWO EXAIDES INDICTED ON FELONY MISCONDUCT CHARGES BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TEXAS SEN KAY BAILEY HUTCHISON AND TWO FORMER AIDES WERE INDICTED ON FELONY CHARGES OF MISCONDUCT THROWING HER POLITICAL FUTURE INTO DOUBT JUST MONTHS AFTER SHE WAS ELECTED BY A RECORDBREAKING MARGIN A GRAND JURY IN AUSTIN TEXAS ACCUSED THE REPUBLICAN SENATOR OF OFFICIAL MISCONDUCT AND TAMPERING WITH GOVERNMENT RECORDS AND EVIDENCE DURING HER STINT AS STATE TREASURER ITS FOURCOUNT INDICTMENT FOLLOWS A 3 1/2MONTH PROBE OF ALLEGATIONS THAT MRS HUTCHISON USED STATE EMPLOYEES FOR POLITICAL AND PERSONAL ERRANDS AND THAT DOCUMENTS LATER WERE DESTROYED IN A COVERUP MRS HUTCHISON IMMEDIATELY DENOUNCED THE INDICTMENT AS SLEAZY POLITICS ON THE PART OF TRAVIS COUNTY DISTRICT ATTORNEY RONNIE EARLE AND OTHER TEXAS DEMOCRATS AGAINST THE BACKDROP OF A TEXAS FLAG SHE TOLD DOZENS OF REPORTERS IN HER CAPITOL OFFICE WHEN ALL THIS IS OVER I PREDICT THE PEOPLE OF TEXAS WILL STICK WITH ME BUT THE INDICTMENT GIVES A HINT OF VULNERABILITY TO A SENATOR WHO HAD BECOME A WASHINGTON CELEBRITY AND WHO OTHERWISE WOULD BE ALL BUT A SURE BET FOR REELECTION NEXT YEAR SEN HUTCHISON HAS BEEN MUCH IN DEMAND BEFORE POLITICAL AUDIENCES SHE IS THE FIRST WOMAN SENATOR ELECTED FROM HER STATE AND HER VICTORY LAST JUNE BY A 2TO1 MARGIN OVER SEN BOB KRUEGER THE LARGEST MARGIN EVER ACHIEVED AGAINST AN INCUMBENT WAS SEEN AS AN EMBARRASSING REFERENDUM ON PRESIDENT CLINTON'S FIRST MONTHS IN OFFICE MR KRUEGER HAD BEEN APPOINTED TO FILL THE SEAT VACATED BY DEMOCRAT LLOYD BENTSEN WHEN HE BECAME TREASURY SECRETARY BUT AFTER YESTERDAY'S INDICTMENT MRS HUTCHISON CANCELED PLANS TO ATTEND A NEW YORK FUNDRAISER FOR GOP SEN ALFONSE D'AMATO I THINK SHE'S IN REALLY REALLY DEEP TROUBLE SAID POLITICAL ANALYST AND EDITOR CHARLES COOK THOUGH MRS HUTCHISON SAID SHE HOPED A TRIAL WOULD END BEFORE HER STATE'S JANUARY FILING DEADLINE FOR CANDIDATES IT'S WIDELY EXPECTED TO GO BEYOND THE MARCH 8 PRIMARY ELECTIONS I DON'T THINK REPUBLICANS HAVE ANY CHOICE BUT TO GET SOMEONE ELSE TO RUN MR COOK SAID A SENTIMENT PRIVATELY SHARED BY SOME REPUBLICANS GOP REP JOE BARTON IS SAID TO BE INTERESTED HE WAS AMONG THE 23 CANDIDATES WHOM MRS HUTCHISON BEAT IN LAST MAY'S PRIMARY ELECTION SETTING UP THE FACEOFF WITH MR KRUEGER OTHER REPUBLICANS ARE LIKELY TO CONSIDER THE SENATE SEAT ESPECIALLY WITH THE PARTY CLOSING RANKS AROUND GEORGE W BUSH A SON OF FORMER PRESIDENT BUSH IN THE GOVERNOR'S RACE DALLAS INVESTOR RICHARD FISHER A FORMER ADVISER TO ROSS PEROT AND ANOTHER LOSER IN THE MAY PRIMARY ALREADY HAS ENTERED THE DEMOCRATIC FIELD REPS MICHAEL ANDREWS AND JIM CHAPMAN AMONG OTHERS ARE CONSIDERING THE RACE AT THE DEMOCRATIC SENATORIAL CAMPAIGN COMMITTEE A SPOKESMAN REFUSED TO COMMENT SAYING THE POLITICAL EFFECTS OF THE INDICTMENT WERE UNKNOWN THE SENATOR AND HER SUPPORTERS HAVE MADE IT CLEAR THAT HER DEFENSE AT LEAST IN THE COURT OF PUBLIC OPINION WILL BE TWOPRONGED LAMBASTING THE PROSECUTOR THE GRAND JURY AND THE DEMOCRATIC PARTY AS POLITICALLY MOTIVATED AND CONTENDING THAT HER USE OF STATE EMPLOYEES AND PHONES WAS AS SHE PUT IT THE NORMAL COURSE OF BUSINESS FOR ELECTED OFFICIALS INCLUDING DEMOCRATIC GOV ANN RICHARDS MRS HUTCHISON REPEATEDLY NOTED THAT SHE TRIUMPHED IN THE SPRING SPECIAL ELECTION EVEN THOUGH THE ALLEGATIONS AGAINST HER HAD BEEN AIRED DURING THE CAMPAIGN BUT THE DISTRICT ATTORNEY WHO IS PERHAPS BETTER KNOWN FOR PROSECUTING JIM MATTOX TEXAS'S FORMER DEMOCRATIC ATTORNEY GENERAL REFUSED TO ACKNOWLEDGE ANY INVESTIGATION AT THE TIME THE FIRST SUBPOENAS FOR HER EMPLOYEES WEREN'T ISSUED UNTIL AFTER HER VICTORY THE SENATOR ALSO APPEARED BEFORE THE GRAND JURY SHE HAS REFUSED AS SHE DID YESTERDAY TO SAY WHETHER SHE TESTIFIED OR INVOKED THE FIFTH AMENDMENT SENATE GOP LEADER ROBERT DOLE OF KANSAS WHO'D BEEN SCHEDULED TO APPEAR WITH MRS HUTCHISON IN NEW YORK ISSUED A STATEMENT THERE SAYING IT'S PRETTY OBVIOUS THIS IS DRIVEN BY A POLITICAL EFFORT TO DISCREDIT A RISING STAR IN THE REPUBLICAN PARTY WHOSE VOTEGETTING ABILITY HAS TEXAS DEMOCRATS RUNNING SCARED 9309280097 930928 AMBULATORY MEDICAL CARE INC CINCINNATI AMBULATORY MEDICAL CARE INC SAID ITS SHAREHOLDERS VOTED TO APPROVE A PROPOSAL TO TAKE THE COMPANY PRIVATE THE OPERATOR OF URGENTCARE OFFICES SAID HOLDERS OF COMMON STOCK EXCEPT FOR CERTAIN PRINCIPAL SHAREHOLDERS WILL RECEIVE 550 A SHARE AMBULATORY MEDICAL CARE SAID ITS COMMON STOCK WILL NO LONGER BE TRADED ON THE NASDAQ MARKET 9309280096 930908 PUBLISHING RICH AND FAMOUS GHOSTWRITERS IN TOW ARE VENTURING INTO NEW LITERARY GENRES BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THESE DAYS BEING A BONA FIDE WRITER CAN BE A HANDICAP WHEN IT COMES TO LANDING A BOOK CONTRACT CONSIDER THIS CELEBRITY DIVORCEE IVANA TRUMP IS NOW PROMOTING HER SECOND NOVEL TENNIS STAR MARTINA NAVRATILOVA JUST SIGNED A FAT DEAL WITH RANDOM HOUSE FOR THREE MYSTERY NOVELS AND PETITE SEX GURU RUTH WESTHEIMER PUBLISHED A COFFEETABLE ART BOOK IN APRIL BOOKS BY AND ABOUT CELEBRITIES HAVE LONG BEEN A PUBLISHING STAPLE BUT NOW CELEBRITIES ARE VENTURING BEYOND ASTOLDTO MEMOIRS INTO FICTION AND OTHER UNFAMILIAR GENRES AND MANY ARE DROPPING ALL PRETENSE THAT THEY CRAFTED THE PROSE THEMSELVES AS PUBLISHERS TURN OUT FEWER NEW TITLES EACH YEAR CELEBRITY BOOKS ARE CONSUMING A DISPROPORTIONATE SHARE OF PUBLISHERS' MONEY AND ATTENTION AND SPACE ON BOOKSTORE SHELVES INDEED THERE IS A GROWING SENSE THAT BOOK PUBLISHING HAS COME TO RESEMBLE HOLLYWOOD WHERE STAR POWER MORE THAN STORY QUALITY DETERMINES WHAT GETS PRODUCED AND MARKETED ONE DIFFERENCE STARS ACTUALLY HAVE TO WORK TO GET THEIR NAMES ON A MOVIE MARQUEE MS TRUMP FOR EXAMPLE TOLD LADIES' HOME JOURNAL THAT HER GHOSTWRITER FOLLOWS HER AROUND TO PARTIES IN NEW YORK PALM BEACH FLA AND SWITZERLAND IN ORDER TO SOAK UP HIGHSOCIETY AMBIANCE FOR THE BOOKS THIS SYSTEM MS TRUMP EXPLAINS IS MUCH EASIER THAN DESCRIBING EVERYTHING TO HER COLLABORATOR NOT TO MENTION BEING EASIER THAN DROPPING OUT OF THE SOCIAL SWIM TO WRITE IT HERSELF ONLY MS TRUMP'S NAME APPEARS ON THE JACKETS OF FOR LOVE ALONE HER FIRST EFFORT AND NOW FREE TO LOVE DUE IN BOOKSTORES THIS MONTH HOWEVER ON AN ACKNOWLEDGEMENTS PAGE SHE THANKS MY FRIEND CAMILLE MARCHETTA FOR HELPING ME TO TELL THE HEROINE KATRINKA'S STORY DR RUTH SAYS SHE WROTE THE ART OF AROUSAL A HISTORY OF EROTIC ART WITH AN ESTEEMED BUT UNNAMED ART HISTORIAN THE BOOK'S PUBLISHER ABBEVILLE PRESS INSISTS DR RUTH'S COAUTHOR WANTED TO REMAIN ANONYMOUS BUT IS VAGUE ABOUT HIS REASONS BOOK PUBLISHING ISN'T ANY DIFFERENT FROM THE MOVIE BUSINESS THESE DAYS SAYS BILL ADLER A LITERARY AGENT WHO PAIRED MANY CELEBRITIES WITH GHOSTWRITERS DURING THE '80S THERE ARE ONLY A THIRD AS MANY PUBLISHERS AS WHEN I STARTED OUT IN THE '50S AND THEY ALL WANT A BIG HIT THEY'LL PAY A PREMIUM TO GET MARTINA NAVRATILOVA JUST LIKE THE MOVIES WILL PAY UP FOR TOM CRUISE VILLARD BOOKS THE DIVISION OF ADVANCE PUBLICATIONS INC'S RANDOM HOUSE THAT IS PUBLISHING THE TENNIS STAR'S MYSTERIES WON'T COMMENT ON THE SIZE OF HER ADVANCE BUT INDUSTRY RUMOR PUTS IT NEAR 1 MILLION FOR THREE BOOKS SUCH A SUM IS UNHEARD OF FOR GARDENVARIETY FIRST NOVELISTS 10000 OR LESS IS MORE TYPICAL MS NAVRATILOVA WILL SHARE THE ADVANCE WITH HER ACKNOWLEDGED COAUTHOR LIZ NICKLES A PUBLISHED NOVELIST PUBLISHING'S GROWING INFATUATION WITH CELEBRITIES INFURIATES HARDWORKING WRITERS WHO DON'T HAVE PRIVATE PLANES AT THEIR DISPOSAL FOR BOOK TOURS MS TRUMP'S PUBLISHER PARAMOUNT PUBLISHING'S POCKET BOOKS SAYS SHE PAID PART OF THE COST OF HER 1992 TOUR VIA PRIVATE JET TO THE EXTENT THESE CELEBRITY BOOKS SUCCEED I THINK THERE ARE FEWER OPPORTUNITIES FOR REAL WRITERS SAYS JESSICA AUERBACH WHOSE THIRD NOVEL SLEEP BABY SLEEP IS DUE IN STORES NEXT SPRING I WORRY THAT THIS WILL BEGIN TO ALTER THE NOTION THAT THE PUBLIC AND PUBLISHERS HAVE OF WHAT A WRITER IS UNTIL THE QUALITY OF WRITING DOESN'T MATTER SOME BOOKSELLERS SHARE HER CONCERN IN THIS CLIMATE IT IS HARDER AND HARDER FOR AN UNKNOWN AUTHOR TO GET PUBLISHED SAYS CAROL BAKLARZ A MERCHANDISING DIRECTOR AT KMART CORP'S BIG WALDENBOOKS CHAIN THOUGH SHE CAN'T PROVIDE HARD NUMBERS SHE SAYS WALDENBOOKS HAS SEEN A BIG SURGE IN CELEBRITY BOOKS IN THE PAST COUPLE YEARS THEY TAKE UP MAYBE HALF OUR BIOGRAPHY SECTION NOW AND CELEBRITIES HAVE EVEN BEGUN INVADING THE KIDS' BOOK SECTION ELAINE PETROCELLI FOUNDER OF BOOK PASSAGE A LARGE INDEPENDENT BOOKSTORE IN CORTE MADERA CALIF IS OUTRAGED BY THE TREND YOU TAKE A CELEBRITY GIVE THEM A BIG ADVANCE AND OFTEN YOU DON'T EXPECT THEM TO WRITE A WORD SHE SAYS MOST OF THESE BOOKS ARE MEDIOCRE TO TERRIBLE BUT THEY GET HUGE ADVERTISING BUDGETS THAT TOP WRITERS HARDLY EVER GET IN THE END BOOKSTORES CAN'T AFFORD NOT TO CARRY THEM BECAUSE THESE ARE THE BOOKS MOST OFTEN ADVERTISED TO THE PUBLIC PUBLISHERS DEFEND THEMSELVES BY SAYING THAT THEY MERELY SUPPLY WHAT THE PUBLIC DEMANDS AND THAT CELEBRITIES TODAY ACTUALLY TAKE A MORE ACTIVE ROLE IN A BOOK'S PREPARATION THAN IN THE PAST THEY ALSO POINT OUT THAT TRULY SHAMELESS EFFORTS TO CASH IN ON CELEBRITY USUALLY FLOP MR ADLER THE LITERARY AGENT CLAIMS TO HAVE LAUNCHED THE GENRE OF GHOSTWRITTEN CELEBRITY NOVELS IN THE LATE '60S WHEN HE GOT WRITER GERALD GREEN AUTHOR OF THE LAST ANGRY MAN TO WRITE A NOVEL FOR WASHINGTON COLUMNIST DREW PEARSON THE NOVEL THE SENATOR WAS A NATIONAL BESTSELLER MR ADLER SAYS BUT ONLY MR PEARSON WAS CREDITED AS ITS AUTHOR MR ADLER LATER ENGINEERED A LONG SERIES OF SUCH DEALS SIGNING UP TOM SEAVER DICK CLARK HELEN HAYES AND SEN JAKE GARN AMONG OTHERS TO LEND THEIR NAMES TO MYSTERY NOVELS WRITTEN BY OTHERS BUT SET IN THE CELEBRITY'S MILIEU FOOTBALL STAR FRAN TARKENTON FOR EXAMPLE WAS PAID ABOUT 50000 FOR MURDER AT THE SUPER BOWL SAYS MR ADLER DOUG STUMPF WHO EDITED THE BOOK WHILE AT HEARST CORP'S WILLIAM MORROW & CO IN THE MID'80S SAYS THE ATHLETE DID LITTLE MORE THAN CONSULT A FEW TIMES WITH THE WRITER THE TARKENTON NOVEL DID TERRIBLE ACCORDING TO MR STUMPF ADDS MR ADLER WHO READILY ADMITS THAT A NUMBER OF HIS CELEBRITY MYSTERIES WERE BOMBS I DON'T THINK YOU CAN CONVINCE THE PUBLIC THAT THE CELEBRITIES ACTUALLY WROTE THESE BOOKS THESE DAYS PUBLISHERS SELDOM EVEN TRY TO PRETEND WILLIAM GROSE EXECUTIVE VICE PRESIDENT OF PARAMOUNT COMMUNICATIONS INC'S POCKET BOOKS DIVISION SAYS THAT BEFORE PUBLISHING MS TRUMP'S NOVELS THE COMPANY ADVISED HER TO OPENLY DIVULGE THAT SHE WASN'T THE WRITER PUBLISHERS USED TO WORRY THAT THE PUBLIC WOULD BE OUTRAGED WHEN THEY LEARNED THESE CELEBRITIES DIDN'T WRITE THEIR BOOKS BUT I DON'T THINK THEY CARE HE SAYS WHAT READERS WANT IS TO GET CLOSE TO A CELEBRITY AND EXPERIENCE HIS OR HER WORLD AND IF THAT TAKES A COLLABORATOR TO ACHIEVE WHICH IT NEARLY ALWAYS DOES SO BE IT MS TRUMP'S FIRST NOVEL SOLD AN IMPRESSIVE 100000 COPIES IN HARDCOVER ACCORDING TO MR GROSE AND SPENT SIX WEEKS ON THE NEW YORK TIMES BESTSELLER LIST NOT EVERY GHOSTWRITTEN CELEBRITY BOOK DOES AS WELL AS MS TRUMP'S FIRST NOVEL DR RUTH'S COFFEETABLE ART BOOK FOR EXAMPLE NEVER MADE THE BESTSELLER LIST ALAN MIRKEN ASSOCIATE PUBLISHER OF ABBEVILLE PRESS SAYS THAT THE COMPANY HAS SOLD ABOUT 15000 COPIES SINCE APRIL AND THAT THE LITERARY GUILD ORDERED 25000 COPIES FOLLOWING AN INITIAL ORDER OF 15000 WE'RE VERY PLEASED HE SAYS WE FEEL THAT SHE DELIVERED A MESSAGE THAT SEX IS WARM AND FRIENDLY AND SO IS ART MANY PUBLISHERS STRESS THAT THEY DEMAND MORE PARTICIPATION BY CELEBRITIES THAN BEFORE TAKE MS NAVRATILOVA'S THREEBOOK CONTRACT WITH VILLARD BOOKS FOR EXAMPLE MR STUMPF WHO WILL EDIT THE BOOKS SAYS HE WOULDN'T BE ASSOCIATED WITH THE PROJECT IF IT WAS TO BE PRODUCED LIKE THE TARKENTON MYSTERY I DON'T SEE BOOKS LIKE THAT AS BEING LEGITIMATE HE SAYS I WANTED TO MAKE SURE THAT MARTINA WOULD BE VERY INVOLVED AND SHE IS OF COURSE THERE ARE A FEW CELEBRITIES WHO HAVE WRITTEN THEIR OWN BOOKS INCLUDING ACTRESS CARRIE FISHER WHO IS THE AUTHOR OF TWO BESTSELLING NOVELS EVEN AS THE FRENZY TO SIGN CELEBRITY BOOKS CONTINUES THERE ARE A FEW SMALL SIGNS THAT PUBLISHERS THEMSELVES ARE BEGINNING TO TIRE OF THE TREND RIGHT NOW OUR EMPHASIS IS ON SOLID STORIES REAL ENTERTAINMENT AND CONTINUITY OF AUTHORS RATHER THAN ONESHOT CELEBRITIES SAYS LAURENCE KIRSHBAUM PRESIDENT OF TIME WARNER INC'S WARNER BOOKS THE PUBLISHER OF SEX MADONNA'S BESTSELLER THE PROBLEM WITH A BIG CELEBRITY BOOK LIKE MADONNA'S THOUGH IT WAS GREAT FOR US IS THAT IT TAKES OVER YOUR ENTIRE PUBLISHING PROGRAM MR KIRSHBAUM SAYS IT ISN'T JUST THE MONEY BUT THE LOSTOPPORTUNITY COST AS THE ENTIRE COMPANY FOCUSES ON THAT FROM THE LONGTERM STANDPOINT YOU'RE BETTER OFF BUILDING A REAL REPEATABLE AUTHOR SEE RELATED LETTER LETTERS TO THE EDITOR GHOSTWRITERS DESECRATE TRUE SPIRIT OF FICTION WSJ SEPT 28 1993 9309080013 YY93MM09 9309280095 930928 LETTERS TO THE EDITOR GHOSTWRITERS DESECRATE TRUE SPIRIT OF FICTION GHOSTWRITERS PENNING CELEBRITY NOVELS ABSOLUTELY SICK YOUR SEPT 8 ARTICLE ABOUT BOOK CONTRACTS FOR CELEBRITIES WHO DON'T WRITE WAS APPALLING HELPING ILLITERATE STARS TELL THEIR AUTOBIOGRAPHY MADE SOME SENSE IT WAS ESSENTIALLY THE CELEBRITY'S STORY AN ACCOUNT OF A LIFE FROM THE SUBJECT'S OWN POINT OF VIEW AND EVERYONE KNEW THE GHOSTWRITER'S ROLE BUT FICTION BY DEFINITION FICTION IS IMAGINARY CALL ME OLDFASHIONED BUT I STILL THINK OF LITERATURE AS AN ART FORM A VERY COMPLEX ONE AT THAT PERHAPS THIS NEW GENRE OF BOOK SHOULD COME WITH A CREDITS PAGE IN WHICH THE ROLES OF ALL INVOLVED ARE CREDITED I CAN'T SEE HOW THE CREATIVE PROCESS OF WRITING CAN BE BROKEN DOWN INTO ASSIGNMENTS I'LL DO THE BIG IDEAS YOU DO THE WORD CRAFTING THE WORDS ARE THE STORY TO LEND ONE'S NAME TO THE PEDDLING OF A BOOK AS IF IT WERE A BOTTLE OF PERFUME IS TO DEBASE THE ART BUT I SUPPOSE MY MISTAKE IS THAT I CONTINUE TO GET BUSINESS AND ART CONFUSED THESE WRITERS AND PUBLISHERS ARE NOT INVOLVED IN LITERATURE IT'S JUST ANOTHER HUSTLE AND IT'S RATHER SAD THAT THERE ARE PEOPLE WHO ARE ACTUALLY BUYING IT 9309280094 930928 STRIDE RITE AGREES TO SETTLE CHARGES IT TRIED TO FORCE PRICING BY RETAILERS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL STRIDE RITE CORP AGREED TO PAY 72 MILLION TO SETTLE CHARGES THAT THE COMPANY CUT SHIPMENTS OF ITS POPULAR KEDS SHOES TO RETAILERS THAT WOULDN'T AGREE TO CHARGE FULL LIST PRICE THE ANTITRUST SETTLEMENT OF FEDERAL CHARGES BROUGHT BY THE NEW YORK ATTORNEY GENERAL WAS THE LATEST IN A SERIES OF STATE ACTIONS AGAINST CONSUMERGOODS MAKERS WHO ATTEMPT TO ENFORCE PREMIUM PRICES FOR THEIR PRODUCTS THE SETTLEMENT AMONG THE LARGEST IN THE FOOTWEAR INDUSTRY MAY ALSO FORESHADOW TIGHTER GOVERNMENT SCRUTINY ON THE ATHLETIC SHOE INDUSTRY WHICH IS RIFE WITH ALLEGATIONS OF SIMILAR PRICEFIXING ARRANGEMENTS FOUR YEARS AGO NEW BALANCE ATHLETIC SHOE INC SETTLED A SIMILAR SUIT WITH THE PENNSYLVANIA ATTORNEY GENERAL FOR A RELATIVELY SMALL 43000 BUT WITH STRIDE RITE THE FEDERAL TRADE COMMISSION AND ATTORNEYS GENERAL FROM 50 STATES JOINED AS PLAINTIFFS FOLLOWING AN INVESTIGATION THAT BEGAN IN NEW YORK THE SETTLEMENT FOLLOWS OTHERS IN 1991 BY NINTENDO CO AND MITSUBISHI ELECTRIC CORP BOTH OF WHICH WERE ALSO INVESTIGATED BY THE ANTITRUST DIVISION OF NEW YORK ATTORNEY GENERAL ROBERT ABRAMS FOR ALLEGED PRICE FIXING NINTENDO SETTLED FOR 25 MILLION AND MITSUBISHI 8 MILLION WE BELIEVE THAT THE PRICING PROBLEM IS FAR MORE WIDESPREAD THAN THE KEDS CASE SAID NANCY CONNELL SPOKESWOMAN FOR MR ABRAMS SHE WOULDN'T SAY IF ANY OTHER FOOTWEAR COMPANIES ARE UNDER INVESTIGATION BUT ADDED THAT THE ANTITRUST BUREAU HERE IS LOOKING AT PRICING PRACTICES IN THE ATHLETIC SHOE INDUSTRY STRIDE RITE BASED IN CAMBRIDGE MASS SAID IN A NEWS RELEASE THAT THE SETTLEMENT WASN'T AN ADMISSION OF GUILT INSISTING THAT ITS PRICING POLICY WAS ENTIRELY LAWFUL COMPANY OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING FURTHER COMMENT ACCORDING TO THE COMPLAINT FILED IN FEDERAL COURT IN MANHATTAN PROSECUTORS ALLEGED THAT BEGINNING LAST YEAR STRIDE RITE COERCED STORES INTO SELLING SIX STYLES OF KEDS WOMEN'S ATHLETIC SHOES AT SUGGESTED RETAIL PRICES OF 20 TO 45 A PAIR SHIPMENTS WERE CURTAILED OR CUT OFF AFTER RETAILERS BALKED THE COMPLAINT SAID LEADING SOME RETAILERS IN THE MIDWEST AND NEW YORK TO COMPLAIN TO MR ABRAMS'S OFFICE SOME ATTORNEYS SAY THAT MANUFACTURERS COMMONLY TAKE AN ACTIVE ROLE IN SUGGESTING RETAIL PRICES BUT NOTE THAT THEY OFTEN WALK A FINE LINE IN DOING SO UNDER CASE LAW IT'S LEGITIMATE FOR A MANUFACTURER TO ANNOUNCE IN A WIDELY DISTRIBUTED LETTER THAT THEY WON'T DO BUSINESS WITH A RETAILER WHO WANTS TO DISCOUNT SAID KEVIN NASCA ASSISTANT ATTORNEY GENERAL FOR MASSACHUSETTS IT'S WHEN THEY GO BEYOND THAT POINT AND REACH AN AGREEMENT ORAL OR WRITTEN TO RAISE THE SELLING PRICE THAT THEY GET INTO TROUBLE THAT'S WHAT STRIDE RITE DID MR NASCA ALLEGES HE SAYS THE COMPANY SOLICITED STORES AND GOT THEM TO AGREE TO KEEP PRICES OF THE KEDS LINE AT SUGGESTED RETAIL LEVELS STRIDE RITE ALSO ASSIGNED SALESPEOPLE TO MONITOR PRICES TO ENSURE COMPLIANCE THE COMPLAINT SAYS PRESSURES ARE SUBTLE BUT RATHER COMMON SAID JOHN HORAN PUBLISHER OF SPORTING GOODS INTELLIGENCE AN INDUSTRY NEWSLETTER COMPANIES DO IT IN A NUMBER OF WAYS HE SAID THEY TELL YOU THEY WON'T HELP YOU ADVERTISE THE SHOE OR THEY SAY WE'LL PUT YOU AT THE BOTTOM OF THE LIST WITH HOT PRODUCTS IN STRIDE RITE'S CASE DISCOUNTING CAME AT A TIME WHEN BUSINESS WAS SOFT FOR MANY RETAILERS AND SEVERAL DEPARTMENT STORES BEGAN DISCOUNTING KEDS SHOES BECAUSE OF ITS GOOD BRAND NAME TO ATTRACT CUSTOMERS INTO THE STORE STRIDE RITE SAID IN THE PRESS RELEASE IT DECIDED TO RESOLVE THE ISSUE EXPEDITIOUSLY TO AVOID COSTLY LITIGATION AND DISRUPTIONS TO ITS BUSINESS AS A RESULT OF THE SETTLEMENT STRIDE RITE TOOK A CHARGE OF 43 MILLION OR EIGHT CENTS A SHARE AND REPORTED THIRDQUARTER NET INCOME OF 184 MILLION OR 36 CENTS A SHARE THAT WAS DOWN 11 FROM 207 MILLION OR 40 CENTS A SHARE A YEAR EARLIER SALES FELL SLIGHTLY TO 1665 MILLION FROM 1684 MILLION 9309280093 930928 GM'S OUTPUT TO FALL SHORT IN 3RD QUARTER AUTO MAKER TO MISS TARGET BY 110000 VEHICLES PARTS PROBLEMS BLAMED BY ANDREA PUCHALSKY AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP WILL FALL ABOUT 110000 VEHICLES SHORT OF ITS ORIGINAL THIRDQUARTER US PRODUCTION PLANS BECAUSE OF PROBLEMS OUTFITTING NEW AIRBAGS AIR CONDITIONERS AND OTHER PARTS IN ITS MODELS THE SHORTFALL WHICH GM OFFICIALS SAID ISN'T RELATED TO SLOW DEMAND COULD CUT SHARPLY INTO GM'S THIRDQUARTER RESULTS AND SLOW PROGRESS TOWARD ACHIEVING A GOAL OF BREAKEVEN PERFORMANCE IN NORTH AMERICAN OPERATIONS THIS YEAR IN ITS JULY 1 FORECAST GM SAID IT PLANNED TO BUILD 845000 CARS AND TRUCKS IN THE US DURING THE THIRD QUARTER GM CUT THOSE ESTIMATES TWICE BUT AS OF SEPT 1 IT WAS STILL PROJECTING US CAR AND TRUCK PRODUCTION AT ABOUT 800000 VEHICLES BASED ON ITS PERFORMANCE IN JULY AND AUGUST AND PRODUCTION SHORTFALLS SO FAR THIS MONTH HOWEVER IT NOW IS LIKELY GM WILL PRODUCE ONLY 735000 TOTAL VEHICLES IN THE US A DECREASE OF 13 FROM ITS ORIGINAL ESTIMATE A GM SPOKESWOMAN ACKNOWLEDGED YESTERDAY THAT THE COMPANY IS FALLING BEHIND ITS PRODUCTION SCHEDULES BECAUSE OF A RASH OF PARTS PROBLEMS IT MAY APPEAR TO AN OUTSIDER THAT THIS WAS A CARRYOVER YEAR THE SPOKESWOMAN SAID BUT WE HAVE 20000 NEW PARTS IN THE PLANTS ABOUT HALF THE PROBLEMS ARE RELATED TO DIFFICULTIES WITH NEW AIRBAG SYSTEMS AND AIR CONDITIONING SYSTEMS USING NONCFC REFRIGERANTS THE SPOKESWOMAN SAID THE REST OF THE SHORTFALL IS RELATED TO PROBLEMS WITH OTHER PARTS GM'S PROBLEMS COME IN THE WAKE OF A MASSIVE SHAKEUP OF ITS SUPPLIER NETWORK THAT WAS LAUNCHED LAST SUMMER BY FORMER PURCHASING CZAR JOSE IGNACIO LOPEZ DE ARRIORTUA AND CONTINUED AFTER HE BOLTED TO VOLKSWAGEN AG IN MARCH FOR MONTHS SUPPLIERS HAVE BEEN WARNING THAT THE 1994 MODEL LAUNCH COULD BE ROUGH BECAUSE PRODUCTION OF SO MANY COMPONENTS WAS SWITCHED ON SHORT NOTICE AS MR LOPEZ PURSUED HIS CRUSADE TO CUT GM PURCHASING COSTS BY ABOUT 4 BILLION TWO WEEKS AGO FOR EXAMPLE GM BUILT JUST ONE CAR AT ITS BIG OKLAHOMA CITY MIDSIZE CAR FACTORY THAT AMOUNTED TO LOST PRODUCTION OF ABOUT 5000 OLDSMOBILE CUTLASS CIERA AND BUICK CENTURY MODELS A GM SPOKESMAN ATTRIBUTED THAT TO A SHORTAGE OF 31 LITER ENGINES USED IN THE CARS AT GM'S LANSING MICH COMPACT CAR ASSEMBLY COMPLEX PRODUCTION IN THE WEEK OF SEPT 13 WAS 2908 VEHICLES DOWN FROM 8915 IN A NORMAL WEEK IN MIDJUNE BEFORE THE CHANGEOVER TO 1994 MODELS A GM SPOKESMAN SAID THE LANSING PLANT SLOWED TO DEBUG THE PROCESS OF ADDING SUCH EQUIPMENT AS AIRBAGS AND CFCFREE REFRIGERANTS TO 1994 MODELS THE LANSING FACILITY ALSO FACED OTHER PROBLEMS INCLUDING CHANGES IN THE PAINT SYSTEM THAT HAVE PUT THE PLANT BEHIND EVEN THE REDUCED PRODUCTION PLAN FOR THE THIRD QUARTER THE SPOKESMAN SAID A SPOKESWOMAN FOR GM'S NORTH AMERICAN OPERATIONS SAID YESTERDAY THAT THE COMPANY SCALED BACK THIRDQUARTER PRODUCTION OUT OF CONCERN THAT WE PRODUCE QUALITY PRODUCTS FOR CUSTOMERS WE AREN'T GOING TO SPEED OUR ACCELERATION OR USE COMPONENTS THAT AREN'T UP TO SPECIFICATIONS WE FEEL WE ARE QUICKLY PUTTING THE PROBLEMS BEHIND US THE SPOKESWOMAN ADDED 9309280092 930928 LETTERS TO THE EDITOR MURDERERS WHO HIDE BEHIND CLERICAL GARB IT IS SAD TO SEE YOUR SEPT 1 PAGE ONE PANDERING TO THE RAVINGS OF SHEIK OMAR ABDELRAHMAN AND HIS DELUDED FOLLOWERS YOU OUTLINE THE SAD LIFE OF THE SHEIK AND BY SEEMING SYMPATHY FOR HIS BELIEFS LEND HIM THE CREDIBILITY AND STANDING HE DOESN'T DESERVE ABDELRAHMAN IS MUCH LIKE KHOMEINI ARAFAT SADDAM HUSSEIN AND OTHER CRIMINALS WHO MERELY USE ISLAM FOR THEIR CRIMINAL AMBITIONS ISN'T IT TIME TO START SEEING THE ABDELRAHMANS FOR WHAT THEY ARE AND NOT ALLOW THEM TO PROTECT THEMSELVES BY DRESSING IN CLERICAL GARB IF THEY COMMIT HEINOUS ACTS SUCH AS MURDER THEIR RELIGIOUS GUISE SHOULD NOT PREVENT THE US OR OTHER COUNTRIES FROM ELIMINATING THEM THEN WE WOULD BE SPARED THEIR ENDLESS GIBBERISH ABOUT ALLAH WANTING THE DEATHS OF INFIDELS THE DEPRAVED ACTS BY ABDELRAHMAN'S HENCHMEN HERE IN NEW YORK MAY SERVE AS A WAKEUP CALL FOR AMERICANS TO STOP THESE TERRORISTS NOW WITH SWIFT SURE AND SEVERE PUNISHMENT THE NAME OF THE AUTHOR OF A SEPT 28 LETTER MURDERERS WHO HIDE BEHIND CLERICAL GARB WAS MISSPELLED HE IS E STUART HENDRICKSON MD OF MURRYSVILLE PA 9309280091 930928 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY SEPT 15 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9309280090 930928 LEISURE & ARTS A VISIT WITH THE GHOST OF EDITH WHARTON BY AMY GAMERMAN BOSTON EDITH WHARTON HAS JOINED THE RANKS OF IVANA TRUMP MAGIC JOHNSON AND DR RUTH SHE'S GOTTEN HERSELF A GHOSTWRITER THE GHOST IS MARION MAINWARING A 70YEAROLD WRITER WHO HAS FINISHED THE BUCCANEERS THE NOVEL THAT WHARTON LEFT UNFINISHED ON HER DEATH IN 1937 THE BOOK IS JUST OUT THIS MONTH FROM VIKING 406 PAGES 22 I THOUGHT WHY NOT WHY HASN'T ANYONE TRIED IT' SAID MS MAINWARING A SMALLBONED WOMAN WITH LUMINOUS BLUE EYES WHO SPOKE FROM A WHEELCHAIR IN SPAULDING REHABILITATION HOSPITAL WHERE SHE WAS RECOVERING FROM A PAINFUL HIP FRACTURE IT WAS SIMPLY A PLEASURE SET IN THE 1870S THE BUCCANEERS FOLLOWS THE ADVENTURES OF A BEVY OF AMERICAN BEAUTIES OF DUBIOUS SOCIAL PEDIGREE SNUBBED BY NEW YORK SOCIETY THEY SET THEIR SIGHTS ON THE BRITISH ARISTOCRACY NAN ST GEORGE THE IMPULSIVE HEROINE OF THE NOVEL BECOMES TRAPPED IN A BRILLIANT BUT UNHAPPY MATCH WITH THE NERDY DUKE OF TINTAGEL SHE FALLS IN LOVE WITH GUY THWARTE A ONCEIMPOVERISHED NOBLE WHO RETURNS FROM SOUTH AMERICA A WEALTHY WIDOWER BUT BEFORE WHARTON COULD BRING THEM TOGETHER SHE DIED LEAVING THE BOOK THREEQUARTERS COMPLETE AND ONLY A BRIEF SYNOPSIS OF THE REST OF THE STORY NOW MS MAINWARING HAS FINISHED THE JOB CALL HER AN EDITHCOMELATELY BUT HER TIMING COULDN'T BE BETTER HER BOOK WAS IN STORES WITHIN DAYS OF THE RELEASE OF MARTIN SCORSESE'S LUSH FILM VERSION OF WHARTON'S MOST FAMOUS NOVEL THE AGE OF INNOCENCE CAPITALIZING ON THE WHARTON BOOMLET MS MAINWARING WHO HAS NEVER HAD MONEY TO SPEAK OF WON A SIXFIGURE ADVANCE WITH A 50000COPY FIRST PRINTING THE BOOK IS A DUAL MAIN SELECTION OF THE BOOKOFTHEMONTH CLUB AND HAS BEEN OPTIONED FOR FILM BY 20TH CENTURY FOX DESPITE THE HYPE AND DESPITE THE NOVEL'S HIGH REPUTATION AMONG CRITICS WHO READ THE ORIGINAL UNFINISHED MANUSCRIPT WHEN IT WAS PUBLISHED IN 1938 THE BUCCANEERS IS NOT THE WHARTON OF THE AGE OF INNOCENCE THE HOUSE OF MIRTH OR EVEN ETHAN FROME BUT IT IS WRITTEN WITH A FRESHNESS AND SPONTANEITY THAT ARE AS MUCH A DEPARTURE FOR WHARTON AS ARE THESE CHARMING SOCIAL INTERLOPERS WHO ARE CUT FROM A ROUGHER CLOTH THAN HER USUAL BLUEBLOOD HEROINES UNFORTUNATELY THE BOOK'S BREEZY SPIRIT SOMETIMES BLOWS TOO HARD IN PASSAGES BETTER SUITED TO A HIGHBROW POTBOILER I DON'T THINK IT'S A GREAT BOOK IF I HAD THOUGHT IT WAS A VERY GOOD BOOK I WOULD HAVE HESITATED MS MAINWARING SAID I WOULD NOT HAVE ATTEMPTED THIS WITH JANE AUSTEN BUT IT'S HARD TO IMAGINE A WRITER BETTER EQUIPPED TO TAKE ON EDITH WHARTON FOR A START MS MAINWARING HAS PROVED HERSELF EXCEPTIONALLY ADEPT AT CAPTURING THE VOICES OF OTHER WRITERS IN 1954 SHE PUBLISHED MURDER IN PASTICHE A WHODUNIT THAT PARODIED NINE MYSTERY WRITERS SIMULTANEOUSLY THE NEW YORK TIMES HAILED IT AS A BRILLIANT PARODY UNMATCHED IN THE HISTORY OF THE DETECTIVE STORY AND IT WAS EVENTUALLY TRANSLATED INTO FOUR LANGUAGES BUT SHE NEVER WROTE ANOTHER WRITER'S BLOCK STYMIED LATER ATTEMPTS AT FICTION SHE SAID WHEN SHE FOUND HER VOICE AGAIN IT WAS AS A TRANSLATOR HAVING TAUGHT HERSELF RUSSIAN SHE EVENTUALLY BECAME PROFICIENT ENOUGH TO TRANSLATE THREE NOVELLAS BY TURGENEV IN A WAY YOU FEEL SAFER IF YOU'RE WORKING IN SOMEONE ELSE'S STYLE SHE CONFESSE ALTHOUGH SHE HAS WRITTEN A FEW OTHER NONFICTION BOOKS AND WHARTON'S STYLE IS ONE THAT HER LIFE IN MANY WAYS PREPARED HER TO COPY LIKE WHARTON MS MAINWARING HAS SPENT MUCH OF HER LIFE ABROAD AFTER EARNING A PHD IN ENGLISH FROM HARVARD IN 1949 SHE MOVED TO LONDON IN 1952 AND THEN TO PARIS IN 1968 SUPPORTING HERSELF AS A SOMETIME FREELANCE JOURNALIST AND INTERPRETER IT WAS WHILE SHE WAS LIVING IN PARIS THAT SHE WAS APPROACHED BY RWB LEWIS TO BE A RESEARCH ASSISTANT FOR HIS BIOGRAPHY OF EDITH WHARTON ALTHOUGH SHE IS LAVISHLY CREDITED IN IT SHE HAS SINCE DISSOCIATED HERSELF FROM THE PULITZERWINNING BOOK WHICH SHE SAID IS RIDDLED WITH ERRORS DURING HER RESEARCH INTO WHARTON'S UNHAPPY AFFAIR WITH MORTON FULLERTON AN AMERICAN JOURNALIST LIVING IN PARIS MS MAINWARING ENCOUNTERED THE BUCCANEERS MANUSCRIPT SHE WONDERED IDLY WHY NO ONE HAD EVER FINISHED THE NOVEL BUT HAD NO THOUGHT OF DOING SO HERSELF INSTEAD SHE EMBARKED ON HER OWN BOOK ABOUT FULLERTON WHARTON AND THEIR MUTUAL FRIEND HENRY JAMES IT IS FINALLY NEAR COMPLETION NOW AFTER YEARS OF OFTENINTERRUPTED WORK IT WASN'T UNTIL 1992 AFTER SHE HAD BEEN BACK IN BOSTON FOR NEARLY 15 YEARS THAT MS MAINWARING REREAD THE BUCCANEERS AND DECIDED TO TAKE IT ON HERSELF SHE KNEW HOW IT HAD TO END SINCE THE WHARTON SYNOPSIS HAD NAN AND GUY RUNNING OFF TOGETHER IT WAS A STARTLING HINT FROM BEYOND THE GRAVE NOTHING QUITE SO BOLD EVER OCCURS IN WHARTON'S OTHER NOVELS IN WHICH PASSION IS ALMOST ALWAYS THWARTED BY SOCIAL CONVENTION AS A RESULT NAN'S FEISTY GOVERNESS LAURA TESTVALLEY LOSES HER CHANCE AT MARRIAGE TO GUY'S WIDOWED FATHER THAT THESE EVENTS ARE SO SEAMLESSLY ACCOMPLISHED IN MS MAINWARING'S CHAPTERS IS A TESTAMENT TO HER SKILL AND TO HER FLUENT COMMAND OF THE STYLES OF LATE 19THCENTURY AND EARLY 20THCENTURY FICTION THERE IS THE ODD MISSTEP IN A BIT OF JARRING OPRAHSPEAK NAN'S CONFRONTATION WITH THE DUKE IS DESCRIBED AS A CRY FOR HELP AND HER FEELINGS FOR GUY ARE EVOKED IN FEVERISH LANGUAGE THAT WOULD NOT BE OUT OF PLACE IN A BARBARA CARTLAND ROMANCE BUT THEN THE SAME CHARGE COULD OCCASIONALLY BE LEVELED AT WHARTON HERSELF MORE TO THE POINT A SENSE OF UNOBTRUSIVE ACCURACY OF TONE AND DETAIL PREVAILS THROUGHOUT MS MAINWARING'S 100ODD PAGES CHARACTERS COLLECT FACTS RATHER THAN THAN RECOLLECT OR REMEMBER THEM THEY DON'T DRINK WINE THEY TAKE IT AND THERE IS A RIGHTNESS TO THE MOST MINOR EMBELLISHMENT FROM THE GLAZED BOOKCASES OF ONE COUNTRY HOME TO THE LETTER WRITTEN BY AN ANXIOUS SPINSTER RECOMMENDING A LADY'S MAID AFTER NAN DESERTS THE DUKE NEITHER WOMAN HAS EXPERIENCE IN HAIRDRESSING SHE FRETS BUT THAT YOU WILL AGREE IS OF SMALL IMPORTANCE IN THESE QUITE EXTRAORDINARY CIRCUMSTANCES MS MAINWARING PREPARED FOR THE JOB BY READING UP ON EVERYTHING FROM FASHIONS OF THE TIME TO ATTITUDES TOWARD DIVORCE BUT THE BIGGEST HELP WAS PAINSTAKINGLY TRANSCRIBING THE UNFINISHED MANUSCRIPT ONTO HER WORD PROCESSOR IT'S LIKE TRANSLATING SHE SAID YOU GET IT INTO YOUR BONES SHE DID LITTLE TO WHARTON'S OWN CHAPTERS ONLY ALTERING ONE SCENE FOR THE SAKE OF CLARITY AND ADDING A FEW SHORT PASSAGES TO PAVE THE WAY FOR DEVELOPMENTS IN HER TEXT AND THE WORD NIGGER HAS BEEN ERADICATED A DECISION MORE VIKING'S THAN HER OWN AND ONE THAT SHE REGRETS ALTHOUGH I HATE THE WORD SO MUCH WHAT THE GHOST OF EDITH WHARTON WOULD MAKE OF MS MAINWARING'S WORK CAN ONLY BE IMAGINED BUT THE GHOSTWRITER HAS HER OWN HUNCH SHE PROBABLY WOULDN'T LIKE IT SHE SAID WITH CHARACTERISTIC SELFDEPRECATION I'VE ALWAYS HAD A FEELING SHE WOULDN'T HAVE LIKED ME MUCH ANYWAY I WOULDN'T HAVE LIVED UP TO HER CRITERIA OF GENTILITY 9309280089 930928 LEISURE & ARTS BOOKSHELF THE IMMODEST MARQUIS BY OLIVIER BERNIER EVEN THOUGH THE MARQUIS DE SADE 17401814 SPENT MOST OF HIS LIFE IN JAIL HE FOUND TIME TO GET MARRIED FATHER THREE CHILDREN INDULGE IN THE ODD SEXUAL EXCURSION AND WRITE BOOKS THAT SHATTERED FOREVER THE NOTION THAT SEXUAL PLEASURE AND TENDERNESS MUST NECESSARILY GO TOGETHER THANKS TO THE ENORMOUS SCANDALS CAUSED BY A FEW EPISODES IN WHICH WHIPS AND BISEXUAL ACTIVITIES WERE PROMINENT HE WAS ALREADY A MYTHIC PRESENCE IN HIS 30S AND HE WENT ON TO BECOME ALTERNATELY A BOGEY FOR THE PRUDISH AND A MODEL FOR THE LIBERATED IN FACT AS MAURICE LEVER PROVES IN SADE A BIOGRAPHY FARRAR STRAUS & GIROUX 626 PAGES 35 THE MARQUIS WAS NEITHER THE MONSTER THE EVERCONVENTIONAL NAPOLEON AND OTHER EASILY SHOCKED SOULS THOUGHT HIM NOR THE BLAZING LIBERATOR WORSHIPPED BY SURREALISTS AND SEXOLOGISTS MR LEVER THE EDITOR OF SADE'S VOLUMINOUS CORRESPONDENCE IS THE FIRST TO MAKE FULL USE OF ACCESS TO THE FAMILY ARCHIVES AND THE PICTURE HE GIVES US OF THIS IRONIC AND TORMENTED MAN IS BASED FOR THE FIRST TIME NOT ON MYTH BUT TO A SIGNIFICANT DEGREE ON SADE'S OWN WORDS THOSE OF HIS FAMILY AND GAUFRIDY THE LAWYER WHO MANAGED HIS ESTATES FAIRLY ONE QUARTER OF THE BOOK IS DEVOTED TO THE MARQUIS'S COMPLAINTS THAT GAUFRIDY WASN'T PAYING PROPER ATTENTION TO HIS INTRICATE COMPLEX OF DEBT FAMILY OBLIGATIONS AND PROPERTIES THE FIGURE WHO EMERGES FROM ALL THESE LETTERS IS BOTH REACTIONARY AND REVOLUTIONARY DEEPLY PROUD OF HIS ARISTOCRATIC FAMILY THE SADES WERE AMONG THE OLDEST AND GRANDEST IN PROVENCE THE MARQUIS DESPISED THE EGALITARIAN IDEAS OF SUCH CONTEMPORARIES AS ROUSSEAU IT NEVER OCCURRED TO HIM FOR INSTANCE THAT HIS SOCIAL INFERIORS WERE FULLY HUMAN PROSTITUTES HE WAS CONVINCED WERE ENTIRELY DISPOSABLE ALTHOUGH CONTRARY TO THE LEGEND THAT ACCUSED HIM OF REPEATED MURDER HE NEVER ACTUALLY WENT BEYOND THE OCCASIONAL VIGOROUS WHIPPING AT THE SAME TIME SADE WAS FIRST TO RECOGNIZE NOT ONLY THAT SEX IS A GOOD DEAL MORE COMPLEX THAN PEOPLE WERE WILLING TO ADMIT BUT ALSO THAT THERE IS NO SUCH THING AS AN ABSOLUTE CULTURAL STANDARD UNTIL SADE IT WAS GENERALLY ASSUMED IN EUROPE AND AMERICA THAT WESTERN CULTURAL AND RELIGIOUS PATTERNS WERE THE ONLY RIGHT AND DEFENSIBLE ONES THE MARQUIS LIKED TO POINT OUT THAT VIRTUE IN ONE CULTURE IS SOMETIMES VICE IN ANOTHER THAT GOD ORDERS IN ONE RELIGION WHAT HE FORBIDS IN ANOTHER AND THAT THERE IS THUS NO NEED FOR THE INTELLIGENT PERSON TO BE CULTUREBOUND THE COROLLARY THAT RELIGION IS MANMADE IS AN IDEA WHOSE EVIDENT RIGHTNESS SEEMED AS SHOCKING TO THE LIKES OF ROBESPIERRE AS IT WOULD TO THE REV PAT ROBERTSON IN FACT SADE WAS IMPRISONED IN 1793 DURING THE REIGN OF TERROR FOR BEING AN ATHEIST EVEN IF HE HAD NEVER WRITTEN A LINE HOWEVER SADE WOULD REMAIN A FASCINATING SUBJECT IRONIC SELFISH DEMANDING HE WAS GIVEN TO VOLCANIC RAGES WHICH HIS ADMIRABLY ELOQUENT LETTERS FULLY REFLECT HE WAS OBSESSED WITH SEX OF COURSE BUT HE WAS HARDLY THE ONLY DEBAUCHEE IN 18THCENTURY FRANCE ALL FORMS OF HETEROSEXUAL AND HOMOSEXUAL ACTIVITIES WERE EASILY AVAILABLE FOR A MODERATE FEE IN PARIS AND MARSEILLE THE TWO CITIES WHERE HE WAS MOST ACTIVE IT WAS SADE'S BAD LUCK HOWEVER THAT PEOPLE IN GENERAL AND HIS FORMIDABLE MOTHERINLAW IN PARTICULAR FOUND THE COMBINATION OF UNCONVENTIONAL SEX AND MILITANT ATHEISM ESPECIALLY UNSETTLING EVEN WORSE FROM THEIR POINT OF VIEW THE MARQUIS LIVED WELL BEYOND HIS MEANS WHEN HE WASN'T IN JAIL NOTHING MADDENED THEM MORE THOUGH THAN THE WAY IN WHICH HE TURNED HIS WIFE INTO A DEEPLY DEVOTED ACCOMPLICE WHILE PAYING VERY LITTLE ATTENTION TO HIS CHILDREN OR THEIR FUTURE IT WAS THIS DENIAL OF THE NORMAL TIES OF FAMILY AND FRIENDSHIP THAT CONVINCED OUTSIDERS THAT SADE WAS IRREDEEMABLY MONSTROUS TODAY HOWEVER HE SEEMS MORE LIKE THE PRECURSOR OF SUCH CHRONICLERS OF ANGST AS SAMUEL BECKETT FOR SADE MR LEVER WRITES MAN'S NATURE IS TO BE SOLITARY THERE IS HE WAS FOND OF REPEATING NO BOND BETWEEN ONE MAN AND ANOTHER IN SEXUAL DESIRE AS IN SOCIAL RELATIONS SADE NEVER SAW THE OTHER AS ANYTHING BUT AN INSTRUMENT EVENTUALLY IN 1790 HIS WIFE CAUGHT ON AND LEFT HIM ALREADY IN THE 1770S THOUGH THE PRESIDENTE DE MONTREUIL HIS WIFE'S MOTHER HAD HAD ENOUGH AND SO A SERIES OF IMPRISONMENTS CULMINATED WITH A 12YEAR STAY IN JAIL 17781790 THAT WAS ENDED BY THE REVOLUTION ONLY TO RESUME IN 1801 ON NAPOLEON'S ORDERS ALL THIS COMES TO VIVID LIFE IN SADE'S LETTERS AND MR LEVER'S DESCRIPTIONS WHAT IS MISSING HOWEVER IS A FULL ACCOUNT OF THE MARQUIS'S LITERARY WORK MR LEVER REFERS TO JUSTINE JULIETTE PHILOSOPHY IN THE BOUDOIR AND THE HUNDRED DAYS OF SODOM ONLY IN PASSING BUT THESE ARE THE WORKS OF A GREAT MIND WHO SAW THROUGH ALL CONVENTIONS SOCIAL POLITICAL RELIGIOUS AND SEXUAL AND WHO COULD WRITE SOME OF THE MOST FIERY PROSE IN THE FRENCH LANGUAGE ALL WERE WRITTEN IN JAIL IN BETWEEN THERE WERE RICHLY COMIC MOMENTS THE SPECTACLE OF SADE THE REACTIONARY PRETENDING TO BE AN EARNEST REVOLUTIONARY AND LEADING A SECTION OF THE JACOBINS IN ORDER TO SAVE HIS HEAD IS AS FUNNY FOR US AS EVIDENTLY IT WAS FOR HIM HIS DENUNCIATIONS OF HIS MOTHERINLAW TEEM WITH THE RIPEST MOST RIBALD INVECTIVE THAT IN THE END MAY BE THE BEST WAY TO KNOW SADE FROM A COMFORTABLE DISTANCE VOLCANIC ERUPTIONS LOOK LIKE NOTHING SO MUCH AS FIREWORKS MR BERNIER HAS WRITTEN BIOGRAPHIES OF LOUIS XIV AND LOUIS XV 9309280087 930901 HOLY TERROR HOW SHEIK OMAR ROSE TO LEAD ISLAMIC WAR WHILE ELUDING THE LAW LIFE OF THE BLIND CLERIC IS ONE OF PASSION PAIN PROTEST MODELED ON MOHAMMED A MARRIAGE COT IN A PRISON CELL BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL SHEIK OMAR ABDELRAHMAN IS A MASTER AT FIRING THE PASSIONS OF HIS ISLAMIC FOLLOWERS AND ELUDING THE NOOSE OF SECULAR LAW AMERICAN PROSECUTORS AND DEFENSE LAWYERS ARE GEARING UP TO TRY HIM AND 14 ALLEGED FOLLOWERS ON CHARGES RELATED TO THE BOMBING OF THE WORLD TRADE CENTER IN NEW YORK EARLY THIS YEAR BUT SHEIK OMAR HAS BEEN TRIED MANY TIMES IN THE PAST IN HIS NATIVE EGYPT ON CHARGES RANGING FROM ASSASSINATION TO INCITEMENT TO RIOT AND HAS BEEN ACQUITTED EVERY TIME MANY US LEGAL EXPERTS BELIEVE THE EVIDENCE MUSTERED SO FAR AGAINST HIM IN THE BOMBING CASE IS THE WEAKEST AGAINST ANY OF THE DEFENDANTS THE SHEIK'S LEGAL TRIALS HOWEVER PALE BEFORE THE PHYSICAL AND EMOTIONAL TRIALS OF HIS LIFE HE IS BLIND AND SUFFERS FROM DIABETES A BAD HEART AND SCABROUS FEET HE HAS BEEN IMPRISONED AND TORTURED EARLY ON THE EGYPTIAN SECRET POLICE TRIED TO PREVENT HIM FROM GETTING HIS DOCTORAL DEGREE HE FIGHTS A POTENTIALLY DEADLY FONDNESS FOR CHOCOLATE YET HIS PERSEVERANCE DESPITE HIS FRAILTIES AND YEARS OF PERSECUTION HAS MADE HIM A POWERFUL ICON WITHIN MODERN ISLAMIC FUNDAMENTALISM IN SEVERAL NATIONS SO POWERFUL THAT AFTER FAILING TO CONVICT HIM IN COURT THE EGYPTIAN AUTHORITIES THREW HIM OUT OF THE COUNTRY IN 1990 AFTER A LIFETIME OF RAILING AGAINST THE SECULAR RULE OF GAMAL ABDEL NASSER ANWAR SADAT AND HOSNI MUBARAK HE NOW HEADS A MOVEMENT THAT IS SHAKING THE GOVERNMENT WE WERE CAUGHT BETWEEN TWO EXTREMES EXPLAINS OSAMA ALBAZ CHIEF POLITICAL AIDE TO EGYPTIAN PRESIDENT MUBARAK ON THE ONE HAND WE DIDN'T WANT TO VIOLATE HIS CONSTITUTIONAL AND CIVIL RIGHTS BUT ON THE OTHER WE KNEW THIS MAN WAS A STUBBORN AND DETERMINED INSTIGATOR OF VIOLENCE AND CONFRONTATION THIS IS THE STORY OF HOW SHEIK OMAR ROSE FROM A YOUNG CLERIC CALLING PEASANTS TO PRAYER TO A LEADER OF MANY DISENCHANTED MUSLIMS ON THREE CONTINENTS UNBOWED BY THE RULE OF LAW OR STATE PERSECUTION HE HAS PREACHED JIHAD OR MUSLIM HOLY WAR IN EGYPT SAUDI ARABIA PAKISTAN EUROPE AND THE US HIS MESSAGE TO FOLLOWERS IS SIMPLE THE PATH TO PARADISE IS FOUND THROUGH MARTYRDOM THEY MUST BE READY TO SUFFER AS THE PROPHET MOHAMMED DID SHEIK OMAR PREACHES THIS MESSAGE IN THE MOST POWERFUL WAY IMAGINABLE BY SEEMING TO LIVE IT HIMSELF HE EXPRESSES OUR SUFFERING IN TERMS OF OUR RELIGION SAYS A YOUNG MAN IN FAYOUM THE SHEIK'S HOMETOWN HE NEVER DEVIATES HIS LIFE TRACKS MANY OF THE KEY EVENTS OF THE MUSLIM WORLD THE 1967 ARABISRAELI WAR THE RISE OF MODERN EGYPT THE IRANIAN REVOLUTION THE WAR IN AFGHANISTAN AND THE ISLAMIC ACTIVISM OF SAUDI ARABIA HE FOUND FRIENDS WHERE HE COULD AMONG THE ANGRY EGYPTIAN YOUTH AMONG THE WEALTHY SAUDI BUSINESS ELITE AMONG THE IMMIGRANT AMERICAN POOR AND AMONG THE US CENTRAL INTELLIGENCE AGENCY ACCORDING TO SENIOR EGYPTIAN OFFICIALS THOUGH THE CIA DENIES EVER EMPLOYING OR HELPING THE SHEIK HE MANAGED TO GET VISAS TO THE US FROM CIA AGENTS POSING AS CONSULAR OFFICIALS WHO WERE GUILTY AT BEST OF BUREAUCRATIC MISMANAGEMENT AT ONE TIME THE SHEIK WAS BEING TRACKED BY THE INTELLIGENCE ARMS OF NO FEWER THAN THREE COUNTRIES EGYPT SAUDI ARABIA AND THE US SHEIK OMAR CONTINUES TO DENY TAKING PART IN ANY ACT OF SPECIFIC TERRORISM HE SPEAKS AS HE ALWAYS HAS OF DRIVING OUT THE INFIDELS AND ADHERING TO THE LAWS OF THE KORAN HIS FOLLOWERS CONTINUE TO LISTEN SHEIK OMAR WAS BORN ON MAY 3 1938 IN THE VILLAGE OF EL MANZALA ON EGYPT'S MEDITERRANEAN COAST BLINDED AT THE AGE OF 10 MONTHS HE SEEMED TO FACE GRIM PROSPECTS BLINDNESS OFTEN CAUSED BY PARASITES FROM THE NILE RIVER IS A COMMON AFFLICTION IN EGYPT MANY VICTIMS MUST BEG TO SURVIVE OTHERS PREACH IN A RELIGIOUS COUNTRY LIKE EGYPT MUSLIMS WHO CAN RECITE THE KORAN BY HEART OFTEN ARE REVERED IN THEIR COMMUNITIES MANY OF THESE SCIENTISTS AS SUCH EXPERTS ARE CALLED IN EGYPT ARE BLIND BY HIS 11TH BIRTHDAY SHEIK OMAR PUSHED BY A DEVOUT UNCLE HAD MEMORIZED THE ENTIRE KORAN BY READING IT IN BRAILLE SUDDENLY THE SIGHTLESS CHILD WHO COULDN'T FETCH WATER WORK THE FIELDS OR SELL VEGETABLES IN THE STREET HAD A PURPOSE THE KORAN CONSUMED HIM AT AGE 13 HE WAS DISPATCHED TO A STRICT RELIGIOUS BOARDING SCHOOL WHERE EVEN ON COLD WINTER MORNINGS WE RACED TO THE STRAW MATS ON THE FLOOR OF THE MOSQUE TO PREPARE OUR LESSONS WROTE THE SHEIK IN HIS BRIEF 1985 AUTOBIOGRAPHY HE ENJOYED HUMILIATING TEACHERS BY ASKING QUESTIONS ABOUT THE KORAN HE KNEW THEY COULDN'T ANSWER IN 1965 SHEIK OMAR RECEIVED HIS DEGREE AT CAIRO'S PRESTIGIOUS ALAZHAR UNIVERSITY HE WAS BITTER HOWEVER THAT THE FIVEYEAR PROGRAM WASTED A YEAR OF OUR LIVES ON SECULAR COURSES FROM ALAZHAR THE 27YEAROLD CLERIC WAS SENT TO THE PROVINCE OF FAYOUM A POOR DESERT OASIS 60 MILES SOUTHWEST OF CAIRO LONGTIME RESIDENTS REMEMBER TWO SHEIK OMARS THE NOVICE CLERGYMAN WHOSE HEARTRENDING TENOR VOICE DREW WORSHIPERS TO DAWN PRAYERS AND THE ANGRY PURITAN PREACHER WHO AFTER THE 1967 ARABISRAELI WAR COULDN'T FORGIVE PRESIDENT NASSER FOR JAILING MUSLIM ACTIVISTS AND LEADING EGYPT TO ITS ROUT BY THE JEWS THOUGH THE SHEIK RAILED AGAINST THE REGIME HE MANAGED TO AVOID PRESIDENT NASSER'S PRISONS BY PREACHING IN CODE A TECHNIQUE HE WOULD COME TO PERFECT HIS AUDIENCES KNEW EXACTLY WHOM HE MEANT BY HIS FREQUENT REFERENCES TO THE WICKED PHARAOH AND SO DID THE POLICE BUT WHENEVER AUTHORITIES QUESTIONED HIM HE TALKED OF ANCIENT PHARAOHS AND QUOTED THE KORAN HE BROKE CODE IN SEPTEMBER 1970 AS MR NASSER LAY IN STATE IN CAIRO SHEIK OMAR URGED HIS MOSQUE NOT TO PRAY FOR THE DEAD PRESIDENT THE POLICE SWEPT IN IMPRISONING HIM WITHOUT CHARGES IN CELL NO 24 OF CAIRO'S 12THCENTURY CITADEL IT WAS THE SHEIK'S FIRST TIME IN PRISON WHEN HE GOT OUT EIGHT MONTHS LATER THE SHEIK WAS BANISHED BY ALAZHAR TO A DESK JOB AT AN ISLAMIC INSTITUTE IN UPPER EGYPT AND BARRED FROM PREACHING IN MOSQUES NEVERTHELESS THIS WAS A PRODUCTIVE TIME FOR SHEIK OMAR PRESIDENT SADAT RELEASED THOUSANDS OF ISLAMIC EXTREMISTS FROM PRISON UNLEASHING THEM IN OFFICIALLY SPONSORED GROUPS TO BATTLE THE PROSOVIET NASSERITES WHO OPPOSED MR SADAT'S OVERTURES TO THE WEST ONE OF THOSE GROUPS WAS THE GAMA'AT ISLAMIYA ARABIC FOR ISLAMIC GROUP THE MUSLIM STUDENT LEAGUE THAT HAS EVOLVED INTO THE MOST IMPORTANT CELL NOW FIGHTING THE MUBARAK REGIME AS A RELIGION PROFESSOR IN SOUTHERN EGYPT IN THE EARLY AND MID1970S SHEIK OMAR BECAME A MENTOR TO MANY GAMA'AT ACTIVISTS HE ALSO WROTE HIS DISSERTATION IN THESE YEARS FORGING THE ARGUMENTS FOR JIHAD THAT WOULD PREOCCUPY HIS LIFE WRITTEN BY A SCRIBE IN LASSICAL ARABIC THE SHEIK'S PHD THESIS ALL 2000 PAGES OF IT IS A TURGID EXPOSITION OF A CHAPTER IN THE KORAN CALLED REPENTANCE WHY REPENTANCE IT REPRESENTS THE FOREIGN POLICY AND MILITARY AFFAIRS OF THE ISLAMIC STATE THE SHEIK EXPLAINS IN THE INTRODUCTION I'VE LOVED IT SINCE CHILDHOOD IN THE CHAPTER MOHAMMED EXHORTS HIS EARLY SUPPORTERS TO WAGE WAR ON SURROUNDING TRIBES OF CHRISTIANS JEWS AND ANIMISTS REBUKING THOSE WHO CHOOSE MATERIAL COMFORTS OVER MARTYRDOM SHEIK OMAR DESCRIBES THE VIOLENCE AND PERSECUTION THE PROPHET SUFFERED FROM THE INFIDELS CONCLUDING THAT JIHAD WAS THE ONLY WAY TO VANQUISH THE ENEMIES OF ISLAM MOHAMMED'S PERSONAL STRUGGLE TO PROPAGATE ISLAM BECAME THE DRIVING METAPHOR OF SHEIK OMAR'S PREACHING HE USED IT IN PRISON IN THE EARLY 1980S WHEN GENTLY COMFORTING YOUNG INMATES WHO HAD BEEN TORTURED AND HE USED IT LAST DECEMBER IN AN INTERVIEW WITH THE WALL STREET JOURNAL WHEN HE WAS ASKED TO GAUGE HIS POPULARITY IN THE US MOHAMMED STARTED WITH JUST A FEW FOLLOWERS HE SAID THOUGH ALAZHAR LIBRARIANS SAY THE SHEIK'S DISSERTATION WAS FOUR TIMES LONGER THAN MOST WRITTEN AT THE UNIVERSITY HE NEARLY DIDN'T GET HIS DOCTORATE EGYPT'S SECRET POLICE PUT OUT THE WORD THAT THE BLIND SHEIK'S CAREER WASN'T TO ADVANCE HIS PHD ADVISERS CONDUCTED THE DISSERTATION REVIEW IN SECRET AND THE DOCTORATE SLIPPED THROUGH THE SHEIK MARRIED HIS FIRST WIFE AISHA HASSAN MOHAMMED AN ENGLISH TEACHER IN THE EARLY 1970S BY 1977 STRAPPED FOR CASH FOR HIS GROWING FAMILY HE TOOK A TEACHING POST AT A GIRLS' COLLEGE IN RIYADH SAUDI ARABIA AS THE SAUDIS' GUEST FOR THE NEXT FOUR YEARS A PERIOD WHEN THE MUSLIM WORLD QUAKED FROM EGYPT'S PEACE WITH ISRAEL IRAN'S REVOLUTION AND THE SOVIET INVASION OF AFGHANISTAN SHEIK OMAR MET MANY LEADING LIGHTS OF RADICAL ISLAM HE RUBBED SHOULDERS WITH HASSAN TURABI NOW THE TOP RELIGIOUS LEADER IN SUDAN ABDULLAH AZZAM A RADICAL PALESTINIAN SHEIK WHO POPULARIZED THE AFGHAN JIHAD IN THE ARAB WORLD AND OSAMA BIN LADDEN A WEALTHY SAUDI BANKROLLER OF MUSLIM MOVEMENTS HE ALSO DEVELOPED CLOSE TIES TO THE MUSLIM WORLD LEAGUE THE MAIN CONDUIT OF SAUDI GOVERNMENT FUNDS AND INFLUENCE TO ISLAMIC CAUSES WORLDWIDE IN 1980 THE SHEIK RETURNED HOME TO FAYOUM WITH A YEAR STILL LEFT ON HIS TEACHING CONTRACT IN HIS AUTOBIOGRAPHY HE DOESN'T SAY WHY ONLY THAT DESTINY DROVE ME BACK TO EGYPT THE FINAL YEAR OF PRESIDENT SADAT'S LIFE WAS A STEADY SLIDE TOWARD DISASTER THOUGH MOST EGYPTIANS HAD SUPPORTED HIS 1978 PEACE TREATY WITH ISRAEL HE WAS BADLY HUMILIATED IN 1980 BY ISRAEL'S DECLARATION OF JERUSALEM ISLAM'S THIRDHOLIEST CITY AS ITS INDIVISIBLE CAPITAL THE NEXT YEAR IN HIS LAST SPEECH BEFORE HIS DEATH THE WINNER OF THE NOBEL PEACE PRIZE COMPARED THE VEILANDGOWN WORN BY TRADITIONAL ISLAMIC WOMEN TO A TENT YOUNG GAMA'AT LEADERS CALLED THE 1978 PEACE TREATY APOSTASY IN LATE 1980 SOME OF THEM DECIDED TO ORGANIZE A NEW CELL CALLED AL JIHAD THEY WENT BACK TO THEIR OLD MENTOR IN FAYOUM FOR SPIRITUAL GUIDANCE THE GROUP ASKED TWO BURNING QUESTIONS OF THE MAN THEY WANTED TO BE THEIR MUFTI OR INTERPRETER OF ISLAMIC LAW THE FIRST WAS WHAT TO DO ABOUT EGYPT'S COPTIC CHRISTIAN MINORITY WHICH MUSLIM EXTREMISTS HAD PERSECUTED FOR BEING AGENTS OF A WESTERN CONSPIRACY AGAINST ISLAM THE SHEIK GAVE HIS ANSWER COPTS WHO DIDN'T OPPOSE MUSLIMS SHOULD NOT BE HARMED COPTS WHO GAVE MONEY TO THE CHURCH TO FIGHT ISLAM SHOULD LOSE THEIR PROPERTY AND COPTS WHO NOT ONLY GAVE MONEY BUT TOOK UP ARMS AGAINST MUSLIMS SHOULD LOSE THEIR PROPERTY AND THEIR LIVES A FEW WEEKS LATER THIS FATWA OR RELIGIOUS DECREE LED TO A POGROM ACCORDING TO TRIAL TESTIMONY BY AN AL JIHAD LEADER THAT DAY HE SAID GUNMEN KILLED SIX CHRISTIANS AND STOLE FIVE KILOS OF GOLD AND 3000 EGYPTIAN POUNDS FROM THEM THE SECOND QUESTION HAD BIGGER REPERCUSSIONS THEY ASKED ABOUT THE DESTINY OF A RULER WHO DOES NOT RULE BY GOD'S LAW SAYS SA'AD HASABALLAH ONE OF SHEIK OMAR'S LONGTIME EGYPTIAN LAWYERS WHO HELPED DEFEND HIM IN COURT MANY TIMES SHEIK OMAR GAVE A SIMPLE ANSWER DEATH MR HASABALLAH SAYS ON OCT 6 1981 LT KHALED ALISLAMBOULI PULLED THE EMERGENCY BRAKE OF HIS MILITARY TRUCK JUST BESIDE THE REVIEWING STAND OF CAIRO'S ANNIVERSARY PARADE FOR THE 1973 MIDEAST WAR FOUR SOLDIERS JUMPED OUT HURLED GRENADES AND SPRAYED GUNFIRE AT PRESIDENT SADAT WHO CRUMPLED IN HIS CEREMONIAL FATIGUES IN FULL VIEW OF TV CAMERAS I HAVE KILLED PHARAOH SHOUTED LT ISLAMBOULI WHO WAS ASSOCIATED WITH AL JIHAD I DO NOT FEAR DEATH AFTER THE ASSASSINATION AND THE BRIEF ISLAMIC UPRISING IN SOUTHERN EGYPT THAT FOLLOWED THE SHEIK'S NAME SUDDENLY ECHOED IN THE INTERROGATION CHAMBERS OF THE CAIRO CITADEL IN THE EARLY MORNING OF OCT 19 1981 TWO TANKS LUMBERED TO A HALT IN FRONT OF HIS SISTER'S BUILDING WHERE HE HAD BEEN HIDING SINCE ARREST ORDERS WERE ISSUED A MONTH EARLIER FOR MORE THAN 1500 EXTREMISTS SHEIK OMAR SPENT THE NEXT THREE YEARS IN PRISON WITH HUNDREDS OF EGYPT'S MOST HARDENED MILITANTS ALL ACCUSED OF CONSPIRING TO OVERTHROW THE GOVERNMENT BEHIND BARS THE SHEIK EARNED THE TITLE PRINCE OF JIHAD AS HE NURTURED MEN HALF HIS AGE TO LEAD WHAT HAS BECOME MODERN EGYPT'S MOST MENACING INSURGENCY WE WERE MOUTHFED THE SCIENCE IN PRISON SAYS ONE FOLLOWER THE FIRST MONTHS IN PRISON WERE THE MOST GRUELING ACCORDING TO JUDICIAL RULINGS SHEIK OMAR AND OTHER DEFENDANTS WERE SEVERELY TORTURED BY POLICE BENT ON LEARNING MORE ABOUT AL JIHAD AND THE ASSASSINATION THE SHEIK WAS BEATEN WITH STICKS SHOCKED WITH ELECTRIC PROBES BURNED WITH CIGARETTES AND HUNG FROM A DOOR BY HIS ARMS IN 1988 A CAIRO COURT ORDERED THE STATE TO PAY SHEIK OMAR 17000 EGYPTIAN POUNDS FOR THE PRISON DURESS IN 1991 IN CASE NO 10510386/10505 AN APPEALS COURT DOUBLED THAT AMOUNT TO THE EQUIVALENT OF 10600 THE ADVERSITY BROUGHT THE DEFENDANTS CLOSER TOGETHER AND CLOSER TO SHEIK OMAR THE FIRST TIME MONTASSER ALZAYAT MET THE SHEIK THE YOUNG LAWYER WAS ON THE VERGE OF A MENTAL BREAKDOWN HE SAYS SUSPECTED OF PLOTTING AN ESCAPE FOR AL JIHAD'S LEADERS MR ZAYAT SAYS HE HAD BEEN ARRESTED AND TORTURED FOR 12 HOURS SHEIK OMAR FOUND HIM BATTERED IN THE CORNER OF THEIR CELL BENDING OVER THE PRISON ELDER WHISPERED TO MR ZAYAT RELY ON GOD DON'T BE DEFEATED IT WAS A LINE SPOKEN BY MOHAMMED IN THE KORAN A NEW STAGE IN MY LIFE BEGAN THAT DAY SAYS MR ZAYAT WHO WOULD BECOME ONE OF SHEIK OMAR'S MOST TRUSTED LEGAL ADVISERS AND A LAWYER ON THE DEFENSE TEAM OF EL SAYYID NOSAIR THE EGYPTIAN WHO WAS TRIED IN NEW YORK IN 1990 FOR THE MURDER OF RABBI MEIR KAHANE THOUGH HE WAS ONLY CONVICTED OF LESSER CHARGES IN THE KAHANE CASE MR NOSAIR WAS ALSO CHARGED IN LAST WEEK'S CONSPIRACY INDICTMENT THE JAILERS DIDN'T SEEM TO UNDERSTAND THE CULT OF PAIN THAT THEY WERE CREATING SEVERAL TIMES FORMER PRISONERS RECALL GUARDS BEAT THE SHEIK IN HIS CELL DRIVING OTHER PRISONERS TO RIOT THIS RESULTED IN MASS BEATINGS AFTERWARD THE PAINS WOULD END WHEN WE HEARD THE SHEIK'S VOICE RECITING THE KORAN RECALLS ONE PRISONER PRISONERS TOOK SHIFTS CARING FOR THE SHEIK THEIR BIGGEST JOB HOWEVER WAS PROTECTING THE CLERIC FROM HIMSELF FOR ALTHOUGH SHEIK OMAR CAN RESIST TORTURE HE CAN'T RESIST SWEETS THE SHEIK IS A DIABETIC YET HE HARBORS AN INSATIABLE APPETITE FOR CHOCOLATE FRIENDS SAY ANY TIME HE COULD WHEEDLE A CHOCOLATE BAR HE DID ONLY TO FALL ILL FROM EATING IT BUT IT WAS NEVER LONG FOLLOWERS SAY BEFORE HE TRIED AGAIN THE SHEIK'S SWEETEST GIFT BEHIND BARS HOWEVER WAS THE SISTER OF ONE OF HIS PROTEGES MORE THAN 18 MONTHS HAD PASSED SINCE THE SADAT KILLING WITH NO END IN SIGHT TO THE LONG CONSPIRACY TRIAL FROM FAYOUM 60 MILES AWAY IT WAS DIFFICULT FOR HIS WIFE TO MINISTER TO HIS NEEDS SO MAHMOUD SHWAYEED A FELLOW INMATE OFFERED HIS TEENAGE SISTER FATAN TO THE SHEIK AS AN ADDITIONAL WIFE BRIDE AND GROOM HADN'T MET WHEN THEY WERE WED IN PRISON BY PROXY MR SHWAYEED STANDING IN FOR HIS SISTER THE BRIDEGROOM BEAMED FROM EAR TO EAR RECALLS A FORMER PRISONER LATER A JUDGE LET THE SHEIK AND HIS NO 2 WIFE HOLD A CIVIL CEREMONY IN COURT AFTER THAT SHE BECAME A WEEKLY VISITOR TO THE SHEIK'S TENT BUILT FOR HIM BY OTHER INMATES IN THE MIDDLE OF A 30MAN CELL BENEATH THE CANVAS THE SHEIK HAD THE ONLY COT IN THE CELL BLOCK WITH 300 MEN ON TRIAL THE AL JIHAD CONSPIRACY CASE TOOK 186 SESSIONS OVER TWO YEARS TO COMPLETE EARLIER A MILITARY COURT HAD TRIED 24 MEN FOR THE SADAT KILLING ITSELF FIVE DEFENDANTS INCLUDING LT ISLAMBOULI WERE HANGED IN APRIL 1982 SHEIK OMAR WAS ACQUITTED IN THAT TRIAL THE CONSPIRACY CASE DRAGGED ON MOSTLY BECAUSE OF PROSECUTORIAL BLUNDER THE STATE INTRODUCED TESTIMONY BELITTLING THE SHEIK'S RELIGIOUS VIEWS THIS OPENED THE WAY FOR THE SHEIK BEFORE A NATIONAL AUDIENCE TO TEAR THE GOVERNMENT APART THE PROSECUTION SAYS THE HOLY STRUGGLE' IS A SPIRITUAL JIHAD AGAINST EVIL POVERTY SICKNESS AND IGNORANCE SAID THE SHEIK IN HIS SIXHOUR REBUTTAL FROM THE WITNESS STAND IT MAY BE THAT A DIVINE SPIRIT HAS ENDOWED THE PROSECUTION WITH ITS UNIQUE KNOWLEDGE YET THOSE WHO HAVE A MINIMUM OF RELIGIOUS KNOWLEDGE KNOW JIHAD MEANS FIGHTING FOR GOD'S SAKE SO THAT HIS WORD SHOULD RISE AND PREVAIL AMONG US ON SEPT 30 1984 JUDGE MOHAMMED ABDEL GHAFFAR READ HIS 677PAGE RULING TO A PACKED COURTROOM SEVERAL INMATES WORE RED EXPECTING THE DEATH SENTENCE THE JUDGE WENT OVER HIS POINTBYPOINT DECISION BEGINNING WITH DEFENDANT NO 1 SHEIK OMAR THE JUDGE DISREGARDED MOST OF THE TESTIMONY TAKEN BY THE POLICE BECAUSE OF THE TORTURE THAT NULLIFIED CRUCIAL EVIDENCE THAT SHEIK OMAR HAD BEEN INVOLVED IN AL JIHAD'S FINANCES THE JUDGE FOUND THAT THE SHEIK'S GENERAL STATEMENTS TO AL JIHAD SUCH AS WHAT TO DO ABOUT COPTS AND UNISLAMIC RULERS CONSTITUTED LAWFUL RELIGIOUS SPEECH THE SHEIK THE JUDGE RULED HAD NEITHER ADVOCATED NOR KNOWN ABOUT ANY PARTICULAR CRIMES BEING PLANNED THE SHEIK'S ACQUITTAL SPARKED PANDEMONIUM IN THE DEFENDANTS' CAGE BUT EGYPT'S STATE SECURITY OFFICIALS WERE FURIOUS THAT 190 DEFENDANTS WERE ACQUITTED AND 110 DREW SENTENCES RANGING FROM ONE TO 40 YEARS MANY ADVISED PRESIDENT MUBARAK TO KEEP THE MILITANTS LOCKED UP BUT MR MUBARAK ORDERED THE ACQUITTED PRISONERS FREED HE THOUGHT THAT NO MATTER HOW SERIOUS THE THREAT MIGHT BE THE COUNTRY WOULD BE ABLE TO CONFRONT IT WITHOUT VIOLATING THE RULE OF LAW EXPLAINS MR BAZ THE PRESIDENT'S TOP POLITICAL AIDE AFTER THE ACQUITTAL SHEIK OMAR WENT BRIEFLY TO SAUDI ARABIA AND THEN CAME HOME TO FAYOUM WHERE HE MOVED INTO A TWOROOM APARTMENT UPSTAIRS FROM THE SMALL HOME OF HIS WIVES AND EIGHT CHILDREN HE WASTED NO TIME IN TAKING ADVANTAGE OF HIS NEWFOUND FAME HE TOURED EGYPT CHARMING CROWDS OF YOUNG MEN WITH WAR STORIES OF HOW IN COURT HE HAD CORRECTED THE PROSECUTION'S CITATIONS OF THE KORAN HE ADMONISHED YOUNG MILITANTS TO ACCEPT CONSCRIPTION INTO THE ARMY SO THEY COULD USE THE TRAINING LATER AND HE TRUMPETED WHAT HE SAW AS THE MORAL OF HIS COURT VICTORY NO MATTER HOW MUCH PAIN THE GOVERNMENT INFLICTS NEVER TURN FROM ISLAM I WAS STRUCK BY HIS CALM SAYS ALI SBAQ A CAIRO LAWYER WHO WAS A STUDENT WHEN HE FIRST HEARD SHEIK OMAR PREACH BUT HIS WORDS BORE THE MEANING OF REVOLUTION BY 1986 THE REGIME BELIEVED THAT THE SHEIK AND OTHERS WERE REORGANIZING AL JIHAD ONE AFTERNOON WHEN SHEIK OMAR WAS ABOUT TO PREACH IN A MOSQUE IN ASWAN THE POLICE ORDERED THE MOSQUE VACATED THE SHEIK REPLIED THAT HE WOULD SURRENDER AFTER HIS SERMON A FEW MINUTES LATER TEARGAS WAS FIRED INSIDE CREATING A MELEE THAT INJURED SEVERAL PEOPLE ONE MAN LOST AN EYE THE SHEIK WAS CHARGED WITH INCITING THE ASWAN RIOT BUT WAS SOON ACQUITTED THIS TIME HE WAS SENT BACK TO FAYOUM AND ORDERED NEVER TO PREACH OR LEAVE THE PROVINCE WITHOUT PERMISSION THAT BEGAN A THREEYEAR GAME OF CAT AND MOUSE ON SEVERAL OCCASIONS THE SHEIK SENT OUT DECOYS SO HE COULD ELUDE THE POLICE AND PREACH THIS WAS THE SAME PLOY HE TRIED THIS SUMMER ON FEDERAL AGENTS IN BROOKLYN NY THOUGH THE SHEIK HAD PROBLEMS MOVING INSIDE EGYPT HE WAS FREE TO TRAVEL ABROAD BETWEEN 1986 AND 1990 CIA AGENTS ACTING AS US CONSULAR OFFICIALS IN EGYPT AND SUDAN APPROVED AT LEAST THREE AND PROBABLY FOUR US TOURIST VISAS FOR THE SHEIK THESE ALLOWED HIM TO ATTEND ISLAMIC CONFERENCES IN THE US IN 1986 AND 1987 PRECEDED EACH TIME BY STOPOVERS IN SAUDI ARABIA ONE OF HIS FAVORITE DESTINATIONS WAS PAKISTAN AS EARLY AS 1980 THE SHEIK WAS BESEECHING EGYPTIAN MEN TO JOIN THE AFGHAN JIHAD AGAINST THE SOVIETS WHICH WAS BEING RUN FROM ACROSS THE BORDER IN PESHAWAR PAKISTAN MANY OF THE MILITANTS WHO WERE ACQUITTED WITH THE SHEIK IN 1984 WENT TO PESHAWAR TO FIGHT SENIOR EGYPTIAN OFFICIALS CITING INTELLIGENCE SOURCES AND THEIR OWN INTERROGATIONS OF EGYPTIAN MUJAHEDEEN OR HOLY WARRIORS SAY THE ARAB FIGHTERS RECEIVED SPECIAL TRAINING FROM THE US THE CIA WHICH FUNNELED SOME 3 BILLION OF US AID TO THE AFGHAN REBELS THROUGH PAKISTAN'S INTELLIGENCE SERVICES TRAINED THE ARABS IN A BROAD ARRAY OF SPECIAL OPERATIONS SUCH AS BOMBMAKING AND ASSASSINATION FOR USE BEHIND SOVIET LINES THE EGYPTIANS SAY THE ARABS WERE LOOKING FOR MARTYRDOM WHEREAS THE AFGHANS WERE VERY PRACTICAL SAYS HAMID GUL WHO WAS CHIEF OF PAKISTAN'S INTER SERVICES INTELLIGENCE AGENCY IN THE LATE 1980S SHEIK OMAR'S JOB WAS TO KEEP MARTYRDOM POPULAR WORKING CLOSELY WITH PRIVATE SAUDI BACKERS AS WELL AS THE SAUDI GOVERNMENTSPONSORED MUSLIM WORLD LEAGUE THE SHEIK PREACHED IN PESHAWAR SEVERAL TIMES IN THE LATE1980S HE STAYED JUST OUTSIDE THE CITY IN A LARGE HOUSE WITH DOZENS OF HIS EGYPTIAN FOLLOWERS INCLUDING MOHAMMED ISLAMBOULI A GAMA'AT LEADER AND BROTHER OF PRESIDENT SADAT'S ASSASSIN AND AIMAN ZOWAHARI A DOCTOR AND FOUNDER OF AL JIHAD EGYPT HAS SENTENCED BOTH TO DEATH IN ABSENTIA MURAD ALI SHAH THE PESHAWAR CHIEF OF PAKISTAN'S LARGEST ISLAMIC PARTY RECALLS EATING LUNCH WITH SHEIK OMAR AT THE SAUDI EMBASSY IN ISLAMABAD PAKISTAN IN 1988 IN THOSE DAYS CLAIMS MR SHAH WHO SAYS HE ATTENDED SEVERAL FEASTS FOR SHEIK OMAR EVEN THE AMERICANS WERE AROUND HIM ANYONE WHO CAME TO FIGHT THE SOVIETS WAS WELCOMED BY ALL IN HIS SERMONS BACK IN EGYPT THE SHEIK OFTEN COMPARED THE AFGHAN MUJAHEDEEN TO THE PROPHET MOHAMMED'S SMALL BAND OF BELIEVERS WHO VANQUISHED THE MASSIVE FORCE OF INFIDELS TO SUCH A CAUSE THE SHEIK COULD DO NO LESS THAN CONTRIBUTE HIS OWN BLOOD IN 1988 HE SAID FAREWELL TO HIS TWO OLDEST SONS BOTH TEENAGERS AS THEY LEFT FAYOUM FOR PESHAWAR IF IT'S VICTORY I'LL SEE YOU AGAIN THE SHEIK TOLD THEM RECALLS MR HASABALLAH HIS OLD FRIEND AND LAWYER IF IT'S MARTYRDOM I'LL SEE YOU IN PARADISE BOTH SONS NOW LIVE IN AFGHANISTAN TIME RAN OUT FOR THE SHEIK IN EGYPT IN 1990 THE SHEIK'S FOLLOWERS WERE ON A RAMPAGE AGAINST CHRISTIANS IN SOUTHERN EGYPT IT WAS GROWING CLEAR THAT THE SHEIK'S PROTEGES IN PESHAWAR WERE BRINGING NOTHING BUT WELLTRAINED TROUBLE BACK TO EGYPT THE SHEIK WAS SUMMONED TO CAIRO IN A 90MINUTE MEETING HE AND THENINTERIOR MINISTER ABDEL HALIM MOUSSA AGREED THAT THE SHEIK WOULD CALL FOR CALM IN EXCHANGE FOR BETTER GOVERNMENT TREATMENT OF THE OUTLAWED GAMA'AT BUT THEIR BAD INTENTIONS WERE OBVIOUS THE MOMENT WE LEFT THE OFFICE SAYS KAMAR MOUSSA NO RELATION TO THE MINISTER WHO SERVED AS SHEIK OMAR'S LAWYER AT THE NEGOTIATIONS THREE DAYS LATER THE SHEIK ASKED THE INTERIOR MINISTER FOR PERMISSION TO TRAVEL TO SAUDI ARABIA APPROVAL CAME AT NOON APRIL 25 1990 THE LAST DAY OF THE MUSLIM FASTING MONTH OF RAMADAN AND THE LAST DAY HIS SAUDI VISA WAS VALID BY THE TIME THE SHEIK TWO SONS AND YUSF SAKR A CLOSE FRIEND ARRIVED AT THE CAIRO AIRPORT HOWEVER THE NEXT PLANE TO JEDDAH WASN'T SCHEDULED TO ARRIVE IN SAUDI ARABIA UNTIL AFTER THE VISA'S EXPIRATION WHEN THEY TRIED TO LEAVE THE AIRPORT THEY WERE BARRED BY STATE SECURITY OFFICERS WHO SAID SHEIK OMAR WOULD HAVE TO LEAVE EGYPT THERE WERE TWO COUNTRIES WHERE AN EGYPTIAN COULD EASILY GO WITHOUT A VISA YEMEN AND SUDAN THE NEXT PLANE TO YEMEN WAS IN TWO DAYS THE NEXT PLANE TO KHARTOUM THE CAPITAL OF SUDAN WAS AT 5 O'CLOCK THE NEXT MORNING THE SHEIK AND HIS SONS SPENT THE NIGHT IN THE AIRPORT MOSQUE AFTER DAWN PRAYERS ABDULLAH THEN 15 TOOK HIS FATHER TO THE GATE AND SAID GOODBYE I SHOOK HIS HAND AND KISSED IT HE SAYS OCT 6 1981 EGYPTIAN PRESIDENT ANWAR SADAT IS ASSASSINATED OCT 19 SHEIK OMAR IS ARRESTED AND CHARGED WITH CALLING FOR SADAT'S MURDER AND WITH CONSPIRING TO OVERTHROW THE EGYPTIAN GOVERNMENT MARCH 6 1982 IS ACQUITTED OF THE MURDER CHARGES SEPT 30 1984 IS ACQUITTED OF THE CONSPIRACY CHARGES APRIL 25 1990 IS EXPELLED FROM EGYPT AND FLIES TO SUDAN MAY 2 US EMBASSY IN CAIRO WARNS US EMBASSY IN KHARTOUM SUDAN THAT THE SHEIK IS COMING MAY 10 SHEIK OMAR IS GRANTED ALLEGEDLY THROUGH OVERSIGHTS AT THE US EMBASSY IN KHARTOUM A ONEYEAR VISA TO THE US JULY 18 SHEIK ARRIVES IN NEW YORK AND SETTLES IN BROOKLYN SEPTEMBER US EMBASSY IN CAIRO RECOMMENDS THAT SHEIK OMAR NOT BE DEPORTED TO EGYPT BECAUSE OF TURMOIL THERE NOV 26 THE US REVOKES THE SHEIK'S VISA NOV 27 US STATE DEPARTMENT TELLS THE IMMIGRATION AND NATURALIZATION SERVICE TO LOOK OUT FOR THE SHEIK JAN 31 1991 SHEIK OMAR APPLIES FOR PERMANENT US RESIDENCY AS CLERIC APRIL 9 INS GRANTS SHEIK OMAR PERMANENT RESIDENCY OR GREEN CARD JULY 31 SHEIK OMAR IS DETAINED FOR FIRST TIME AND THE US BEGINS THE LEGAL PROCESS OF DEPORTING HIM MARCH 6 1992 THE SHEIK'S PERMANENT RESIDENCY STATUS IS RESCINDED APRIL 30 SHEIK OMAR ASKS FOR POLITICAL ASYLUM IN US FEB 26 1993 WORLD TRADE CENTER IN MANHATTAN IS BOMBED SEVERAL MEN WITH TIES TO THE SHEIK ARE ARRESTED IN CONNECTION WITH THE BOMBING MARCH 16 AN INS JUDGE DENIES POLITICAL ASYLUM TO SHEIK OMAR AND ORDERS HIM DEPORTED JULY 2 SHEIK OMAR NOW AN ILLEGAL ALIEN IS DETAINED AS A SECURITY THREAT AUG 25 SHEIK OMAR AND 14 ASSOCIATES ARE CHARGED BY THE US WITH SEDITION SEE RELATED LETTER LETTERS TO THE EDITOR MURDERERS WHO HIDE BEHIND CLERICAL GARB WSJ SEPT 28 1993 9309010008 YY93 MM09 9309280086 930928 LETTERS TO THE EDITOR MOBIL'S PENSION PLANS YOUR SEPT 2 PAGE ONE ARTICLE ON PENSION UNDERFUNDING DUE TO AGGRESSIVE EARNINGS ASSUMPTIONS CREATES SOME SERIOUS MISCONCEPTIONS ABOUT THE FINANCIAL STRENGTH OF MOBIL'S PENSION PLANS YOU MAY DEBATE WHETHER OUR RATE OF RETURN ASSUMPTION IS TOO HIGH BUT IT IS DEAD WRONG TO IMPLY THAT A LOWER ASSUMPTION WILL INCREASE PENSION FUNDING AT MOBIL MOBIL'S US PENSION PLANS ARE SO WELLFUNDED THAT ANY CONTRIBUTION TO THESE PLANS THIS YEAR WOULD TRIGGER SEVERE TAX PENALTIES UNDER THE IRS'S PENSION RULES WE HAVE ENCOUNTERED THE FULLFUNDING LIMITATION IN SEVEN OF THE PAST EIGHT YEARS FOR OUR PRINCIPAL US PENSION PLAN MOBIL HAS NO PLACE IN AN ARTICLE ON US PENSION UNDERFUNDING OUR US PENSION PLANS CAN BE FAIRLY DESCRIBED AS AMONG THE BEST FUNDED IN THE US 9309280085 930902 RETIREES AT RISK HOPEFUL ASSUMPTIONS LET FIRMS MINIMIZE PENSION CONTRIBUTIONS RATE OF RETURN THEY PROJECT ON THEIR INVESTMENTS CAN CAUSE UNDERFUNDING GM SHORTFALL HITS 14 BILLION BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL HENRY BERT CAN'T WAIT TO RETIRE AFTER 27 YEARS AS AN ASSEMBLER AT A GENERAL MOTORS CORP PLANT IN BALTIMORE HE SAYS HE IS LOOKING FORWARD TO A WORRYFREE LIFE I JUST PLAN ON ENJOYING MY GRANDCHILDREN AND DOING WORK AROUND THE HOUSE BUT MR BERT MIGHT FEEL A BIT UNEASY IF HE KNEW ABOUT THE GAMBLE GM IS TAKING WITH HIS PENSION MONEY LIKE MANY BIG COMPANIES GM HAS BEEN HOLDING DOWN THE AMOUNT OF MONEY IT SETS ASIDE FOR RETIREES BY BETTING THAT IT CAN REAP HIGH RATES OF RETURN ON ITS PENSION INVESTMENTS IN THE ARCANE WORLD OF PENSION ACCOUNTING THIS IS THE EQUIVALENT OF DRIVING WITHOUT A SAFETY BELT AND LAST YEAR PENSION FUNDS HIT A BUMP IN THE ROAD AFTER YEARS OF BIG PROFITS ON THEIR PENSION INVESTMENTS LOW INTEREST RATES REDUCED MANY PENSION FUNDS' INVESTMENT EARNINGS LAST YEAR TO LEVELS FAR BELOW EXPECTATIONS GM OFFICIALS FOR EXAMPLE CONCEDE THAT THEY HAD ASSUMED AN 11 RATE OF RETURN BUT EARNED ONLY 64 MOREOVER LOW INTEREST RATES ARE INFLATING GM'S OBLIGATIONS TO ITS RETIREES THE GAP BETWEEN WHAT THE AUTO MAKER HAS PROMISED ITS RETIREES AND THE AMOUNT IT HAS SET ASIDE FOR THEM TOTALS 14 BILLION COMPARED WITH A TOTAL OBLIGATION VALUED AT 5684 BILLION AT THE END OF 1992 AND THE COMPANY SAYS THE SHORTFALL COULD JUMP TO 19 BILLION THIS YEAR BECAUSE OF EVEN LOWER INTEREST RATES ACKNOWLEDGING THAT THE COMPANY HAS A PROBLEM A GM SPOKESMAN SAYS THAT FIXING THE PROBLEM IS A HIGH PRIORITY AND THAT WE'VE MADE SOME PROGRESS CONTRIBUTING MONEY AND WILL CONTRIBUTE EXTRA AGAIN THIS YEAR HE ADDS THAT THE PENSION FUND AVERAGED 144AYEAR GROWTH IN THE 198392 DECADE WHAT'S MORE GM HAS LOWERED ITS RATEOFRETURN ASSUMPTION FOR 1993 TO 10 HE SAYS AT GM AND OTHER COMPANIES HOWEVER IT IS NOT JUST A MATTER OF ONE BAD YEAR MANY PENSION FUNDS HAVEN'T REDUCED THEIR EXPECTED INVESTMENT RETURNS SINCE THE MID1980S DESPITE MANY FORECASTS OF A HARSHER INVESTMENT CLIMATE IN THE 1990S THAN IN THE LAST DECADE WHEN BOTH BONDS AND STOCKS EXPERIENCED EXTRAORDINARY GAINS WITH 30YEAR TREASURY BONDS CURRENTLY YIELDING 609 THE CHANCES OF EARNING THE SAME AVERAGE 122 RATE OF RETURN ON BONDS AS IN THE 1980S ARE NIL SAYS SCOTT ELLIOTT OF CALLAN ASSOCIATES A PENSION CONSULTING FIRM AND WITH STOCKMARKET VALUATIONS HIGH AND THE ECONOMY SLUGGISH HE ADDS PENSION FUNDS SHOULDN'T COUNT ON EARNING ANYTHING LIKE THEIR 1980S AVERAGE OF 175 A YEAR ON STOCKS AS A RESULT SOME PENSION FUNDS COULD BE DIGGING THEMSELVES DEEPER AND DEEPER INTO A HOLE AS THE GAP BETWEEN THEIR PENSION PROMISES AND THEIR PENSION FUNDS WIDENS AND THE FINANCIAL SECURITY OF MILLIONS OF RETIREES MAY BE AT RISK SOME PENSION FUNDS ARE STICKING THEIR HEAD IN THE SAND AND HOPING THE PROBLEM WILL JUST GO AWAY SAYS LAWRENCE BADER A VICE PRESIDENT AT SALOMON BROTHERS LEGISLATORS AND REGULATORS ARE BECOMING WORRIED THE ABILITY OF COMPANIES TO MANIPULATE THEIR ASSUMPTIONS ALLOWS THEM TO AVOID PROPERLY FUNDING PENSION PLANS WHICH IN SOME CASES ARE ALREADY SIGNIFICANTLY UNDERFUNDED SAYS REP JJ PICKLE A TEXAS DEMOCRAT WHO HAS BEEN LOOKING AT THE PROBLEM THESE OBSERVERS FEAR THAT THE PENSIONFUND DEFICITS AT SOME OF THE NATION'S LARGEST COMPANIES WILL KEEP GROWING ACCORDING TO THE PENSION BENEFIT GUARANTY CORP THE GOVERNMENT AGENCY THAT PARTIALLY COVERS THE PENSION OBLIGATIONS OF BANKRUPT COMPANIES THE GAP AT THE PENSION FUNDS THAT THE AGENCY CONSIDERS UNDERFUNDED INCLUDING GM'S NOW TOTALS 51 BILLION A TURN FOR THE WORSE UNTIL NOW HOWEVER THE PBGC'S ANNUALLY PUBLISHED LIST OF WORST OFFENDERS HAS BEEN MAINLY CONFINED TO STRUGGLING GIANTS BATTLING A HOST OF OTHER TROUBLES AS WELL THAT MAY BE ABOUT TO CHANGE BY NEXT YEAR MORE THAN HALF OF THE 200 LARGEST CORPORATE PENSION FUNDS COULD BE UNDERFUNDED ACCORDING TO A RECENT STUDY BY JP MORGAN & CO'S ASSETMANAGEMENT GROUP AND THE COMPANIES ARE AGGRAVATING THE DAMAGE FROM LOW INTEREST RATES BY NOT REDUCING THEIR RETURN TARGETS FAST ENOUGH COMPANIES ARE MORTGAGING THE FUTURE TO PAY FOR TODAY SAYS DAVID WALKER A PARTNER IN ANDERSEN CONSULTING AND CHAIRMAN OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS' EMPLOYEEBENEFITS COMMITTEE THE PROBLEM IS EVEN WORSE AT STATE AND MUNICIPAL EMPLOYEES' PENSION FUNDS MOST OF THEM ARE RUNNING DEFICITS ON AVERAGE PUBLIC PENSION FUNDS HAVE SET ASIDE ONLY 89 OF THE MONEY NEEDED TO PROVIDE THEIR WORKERS WITH PENSIONS ACCORDING TO CALLAN ASSOCIATES EVEN THOUGH MAINE'S PENSION FUND FOR TEACHERS AND STATE EMPLOYEES IS ONLY 50 FUNDED THE LEGISLATURE VOTED IN JULY TO RAISE THE INVESTMENTRETURN ASSUMPTION TO 82 THAT WILL REDUCE THE AMOUNT THAT THE STATE WOULD HAVE TO CONTRIBUTE TO THE PENSION FUND BY 22 MILLION OVER TWO YEARS CLAUDE PERRIER THE FUND'S EXECUTIVE DIRECTOR SUSPECTS THAT THE FUND WILL MEET THAT TARGET BUT HE SAYS IF WE REALIZE A GAIN WE SHOULD BE BANKING IT TO COVER SHORTFALLS IN OTHER YEARS CORPORATIONS SAY THEIR RATEOFRETURN ASSUMPTIONS ARE LONGTERM ESTIMATES THAT NEEDN'T REFLECT DAYTODAY ZIGZAGS IN THE CAPITAL MARKETS AND ARE SOUNDLY BASED ON HISTORICAL EXPERIENCE AND RECENTLY BUOYANT STOCK AND BOND MARKETS HAVE STRENGTHENED THE CASE FOR HIGH RETURN ASSUMPTIONS IN THE 1993 FIRST HALF ALONE THE STANDARD & POOR'S 500STOCK INDEX PRODUCED A 482 RETURN INCLUDING DIVIDENDS COMPARED WITH 767 FOR ALL LAST YEAR THE SHEARSON LEHMAN BROTHERS AGGREGATE BOND INDEX SHOWED A FIRSTHALF TOTAL RETURN OF 691 INCLUDING BOTH INCREASES IN BOND PRICES AND INTEREST INCOME COMPARED WITH 740 IN ALL 1992 BUT COUNTING ON THE SAME HIGH RETURNS IN THE CAPITAL MARKETS AS IN THE 1980S IS CHANCY EXPERTS SAY YOU DON'T NEED A STOCKMARKET CRASH FOR THE EFFECT ON PENSION FUNDS TO BE DRAMATIC SAYS RODGER SMITH A CONSULTANT AT GREENWICH ASSOCIATES IN GREENWICH CONN PENSION FUNDS THAT KEEP THEIR TARGETS HIGH AND THEN MISS THEM CAN EITHER TRY TO EARN MORE ON THEIR INVESTMENTS OR FACE A WIDENING DEFICIT MANY PENSION MANAGERS ARE ALREADY HUNTING FOR HIGHERYIELDING INVESTMENTS BUT IN SEEKING HIGHER RETURNS THEY ARE INCREASING THEIR RISKS AND PUTTING PART OF THEIR RETIREES' NEST EGGS ON THE LINE PERSUADING ONCECONSERVATIVE PENSION FUNDS TO DABBLE IN NEWFANGLED INVESTMENTS USED TO BE TOUGH BUT IT ISN'T NOW SAYS DIMITRY SHISHKOFF A VICE PRESIDENT AT JP MORGAN RECENTLY MANY PENSION FUNDS HAVE BEEN GOING ABROAD ESPECIALLY INTO SOCALLED EMERGING MARKETS ACCORDING TO A SURVEY BY GREENWICH ASSOCIATES PENSION MANAGERS THINK THAT IN COMING YEARS RETURNS OVERSEAS WILL TOP THOSE IN THE US STOCK MARKET BY 07 PERCENTAGE POINT THUS ENCOURAGED THESE FUNDS PLAN TO INCREASE THEIR FOREIGN HOLDINGS OF STOCKS AND BONDS ON AVERAGE TO NEARLY 10 OF THEIR ASSETS BY 1995 FROM 67 THIS YEAR THE FUNDS ARE SCOURING THE GLOBE FOR INVESTMENT IDEAS FRANK RUSSELL CO A PENSION CONSULTING FIRM LED A GROUP OF PENSION MANAGERS ON A RECENT TRIP TO CHINA TO CHECK OUT OPPORTUNITIES SUCH AN INVESTMENT STRATEGY IS A GAMBLE HOWEVER BECAUSE MOST CHINESE BUSINESSES DON'T ADHERE TO US ACCOUNTING PRINCIPLES FOR EXAMPLE PENSION MANAGERS HAVE DIFFICULTY EVALUATING THEM OF COURSE A COMPANY THAT MISSES ITS RATEOFRETURN TARGET CAN REDUCE ITS ASSUMED RETURNS BUT THAT REDUCES EARNINGS FACING PRESSURE FROM SHAREHOLDERS TO KEEP UP EARNINGS COMPANIES ARE LOATH TO TAKE SUCH A STEP HOWEVER DELAYING RECOGNITION OF THEIR PROBLEMS HAS BEEN THE CAUSE OF PENSION FUNDS' CURRENT DEFICITS SAYS DON EZRA HEAD OF CONSULTING AT FRANK RUSSELL CO FOR A DECADE HE ADDS MANY PENSION FUNDS HAVE DEVELOPED DEFICITS BY PROMISING BETTER PENSION BENEFITS TO THEIR UNIONIZED WORKERS SOMETIMES IN LIEU OF PAY INCREASES RATHER THAN PUTTING UP THE MONEY TO PAY FOR THOSE BENEFITS HOWEVER COMPANIES CAN SPREAD THE ADDITIONS TO THEIR PENSION FUNDS OVER 20 TO 30 YEARS THAT HAS LEFT MANY PENSION FUNDS ESPECIALLY THOSE WITH UNIONIZED MEMBERS PLAYING CATCH UP BEFORE YOU FINISH PAYING OFF ONE SET OF INCREASES THEY GO UP AGAIN YOU NEVER CATCH UP MR EZRA SAYS AT GM FOR EXAMPLE SUCH BENEFIT INCREASES IN US HOURLYWORKER PENSION PLANS ACCOUNT FOR 27 BILLION OF ITS 14 BILLION PENSIONFUND DEFICIT A SPOKESMAN SAYS THE MAIN CAUSE OF GM'S DEFICIT HOWEVER IS THE INTERESTRATE DROP WHICH HAS WIDENED ITS CURRENT DEFICIT BY 7 BILLION AND COULD ADD ANOTHER 7 BILLION THIS YEAR THE COMPANY ESTIMATES LOW RATES NOT ONLY REDUCE THE RETURNS CURRENTLY AVAILABLE ON NEWLY PURCHASED BONDS BUT ALSO RAISE THE DISCOUNTED PRESENT VALUE OF A PENSION FUND'S LIABILITIES GM ATTRIBUTES THE REST OF ITS DEFICIT TO TWO THINGS 2 BILLION FROM EARLYRETIREMENT PROGRAMS WHICH INCREASED ITS OBLIGATIONS OVER WHAT IT HAD BUDGETED AND 25 BILLION FROM NOT CONTRIBUTING TO THE FUND BUT INSTEAD USING UP THE SURPLUS ACCUMULATED DURING THE 1980S WHEN GM CONTRIBUTED EXTRA MONEY TO ITS FUNDS SOME PENSION FUNDS EVEN TOOK OUT THEIR SURPLUS RATHER THAN LEAVING IT IN THE FUND TO REDUCE FUTURE CONTRIBUTIONS JOSEPH DAVI AN ACTUARY AT THE CONSULTING FIRM TOWERS PERRIN ESTIMATES THAT 10 TO 20 OF THE 100 LARGEST COMPANIES TOOK OUT SURPLUS FUNDS BEFORE THE FEDERAL GOVERNMENT BEGAN TAXING SUCH TRANSACTIONS COMPANIES THAT MADE SUCH WITHDRAWALS WERE LEFT ILLPREPARED WHEN INVESTMENT RETURNS DWINDLED HE SAYS FINALLY MR DAVI SAYS SOME COMPANIES HAVE DEEPENED THEIR DEFICITS BY COUNTING ON EARNING HIGH RATES OF RETURN AND THEN FALLING SHORT GM FOR EXAMPLE RAISED ITS RATEOFRETURN ESTIMATE IN 1990 TO 11 FROM 10 THAT YEAR HOWEVER ITS INVESTMENTS SUSTAINED A DISMAL 2 LOSS A SPOKESMAN SAYS THE FOLLOWING YEAR THE COMPANY BEAT THE 11 BY A WIDE MARGIN EARNING 231 IN 1992 IT MISSED THE MARK AGAIN EARNING 64 FOR THE THREE YEARS GM'S ANNUAL RETURN AVERAGED 87 AND THE SPOKESMAN SAYS THAT MISSING THE 11 TARGET ACCOUNTED FOR A COUPLE HUNDRED MILLION AT MOST OF ITS CURRENT SHORTFALL BEFORE THE MID1980S PENSION FUNDS COULD ASSUME WHATEVER THEY WANTED ABOUT HOW MUCH THEY OWED IN PENSIONS TO EMPLOYEES AND HOW MUCH THEY WOULD EARN ON THE MONEY SET ASIDE TO MEET THE OBLIGATIONS AS A RESULT PENSION PLANS' IMPACT ON CORPORATE PROFITS VARIED WIDELY FOLLOWING NEW RULES ISSUED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD HOWEVER COMPANIES BEGAN IN THE MID1980S TO REFLECT MORE FULLY IN THEIR FINANCIAL STATEMENTS THE COSTS OF PENSION OBLIGATIONS AMONG PROVISIONS OF THE NEW RULES WAS A REQUIREMENT THAT PENSION FUNDS USE REASONABLE AND ACCEPTABLE ASSUMPTIONS FOR THEIR RATE OF RETURN ON INVESTMENTS THE RULEMAKING BODY HOPED THAT BY FORCING PENSION FUNDS TO SET REASONABLE ASSUMPTIONS IT COULD MAKE THE EFFECT OF THE FUNDS ON CORPORATE EARNINGS MORE CONSISTENT FROM COMPANY TO COMPANY AND COMPANIES DID ADOPT MORESIMILAR BUT OFTEN AGGRESSIVE ASSUMPTIONS A CONCOMITANT AGGRESSIVENESS IN PURSUING HIGH RETURNS PLAYED OUT IN A BULL MARKET FOR STOCKS AND BONDS CREATED A GOLDEN AGE FOR PENSION FUNDS AND THE COMPANIES SLASHED THEIR PENSION COSTS A KIDDER PEABODY & CO STUDY ATTRIBUTED 44 OF THE GAIN IN CORPORATE EARNINGS BETWEEN 1982 AND 1987 TO A DECLINE IN PENSION EXPENSE BUT NOW THAT RETURNS IN THE CAPITAL MARKETS HAVE FALLEN COMPANIES ARE RELUCTANT TO GIVE BACK THE GAINS AS INTEREST RATES HAVE DECLINED COMPANIES HAVEN'T KEPT UP BECAUSE IT WAS A PAINFUL DIRECTION TO GO IN SAYS MR SHISHKOFF OF JP MORGAN CORPORATIONS COMPLAIN THAT THEY ARE VICTIMS OF CONFLICTING SIGNALS FROM GOVERNMENT REGULATORY AGENCIES THE INTERNAL REVENUE SERVICE TRIES TO LIMIT CORPORATE TAX DEDUCTIONS FOR PENSIONFUND CONTRIBUTIONS BY CHALLENGING COMPANIES THAT IT THINKS ARE USING ASSUMPTIONS THAT ARE TOO LOW THE PBGC IN CONTRAST PUSHES THEM TO PUT MORE MONEY INTO THEIR PENSION FUNDS HOPING TO LIMIT THE NUMBER OF UNDERFUNDED PLANS IT HAS TO BAIL OUT CORPORATIONS SAY THAT OVER A PERIOD OF YEARS A 9TO10 RATEOFRETURN ASSUMPTION IS JUSTIFIED THEY LOOK TO THE HISTORICAL RETURNS IN THE STOCK AND BOND MARKETS RELYING ON WORK FIRST PUBLISHED IN 1976 BY TWO BUSINESS PROFESSORS ROGER IBBOTSON AND REX SINQUEFIELD AMONG THE FINDINGS IS THAT HISTORICALLY STOCKS HAVE RETURNED BETWEEN SIX AND SEVEN PERCENTAGE POINTS MORE THAN THE INFLATION RATE WHILE BONDS GENERALLY HAVE PRODUCED RETURNS OF FOUR TO FIVE POINTS ABOVE INFLATION EXXON CORP FOR EXAMPLE ASSUMES 4 INFLATION WHICH WOULD GIVE IT RETURNS OF ABOUT 105 ON STOCKS BASED ON THE ACADEMIC MODEL AND 8 ON BONDS I COULD MEET ANYONE'S CHALLENGE ON THIS SAYS JAMES BAYNE EXXON'S MANAGER OF PENSION BENEFITS AND INVESTMENTS IT'S ALL DONE BY MODELS WHICH WE RUN BY THE ACTUARIES AND BUSINESSSCHOOL PROFESSORS BUT ACCORDING TO A RECENT REPORT BY SALOMON BROTHERS COMPANIES THAT ASSUME THAT THE HIGH RETURNS OF THE 1980S WILL CONTINUE COULD GET BOXED INTO A CORNER WHERE THEY MUST EARN A POSITIVE RETURN EACH YEAR WITH 90 ASSURANCE ANY MONEY MANAGER WOULD CALL THAT A TOUGH JOB EVEN WORSE WOULD BE THE PROBLEMS FOR PENSION FUNDS THAT COULD DEVELOP IF THE STOCK MARKET DROPS 10 THIS YEAR FOLLOWED BY ANOTHER 10 NEXT YEAR SAYS GREENWICH ASSOCIATES' MR SMITH IN THEORY MANY PENSION MANAGERS AGREE THE GREENWICH SURVEY FINDS ALTHOUGH MANY HAVEN'T REDUCED THEIR OVERALL RATEOFRETURN ASSUMPTIONS THEY CONCEDE THAT THEY EXPECT LOWER RETURNS IN ALL INVESTMENT CATEGORIES OVER THE NEXT FIVE YEARS FOR ACTIVELY MANAGED BONDS THEY ANTICIPATE TOTAL ANNUAL RETURNS OF ONLY 76 AND FOR US STOCKS ONLY 98 THESE BIG COMPANIES ASSUME THEY WILL EARN RETURNS OF 9 OR MORE ON THEIR PENSIONFUND INVESTMENTS AND HAVE SIGNIFICANT UNDERFUNDED PENSIONFUND OBLIGATIONS THE DEFICIT AVAILABLE FINANCIAL REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AGGREGATE BASIS HOWEVER SOME OF THEIR INDIVIDUAL PENSION FUNDS ARE UNDERFUNDED ON AN ACCOUNTING BASIS IF THESE COMPANIES FAILED THEIR UNDERFUNDED PENSIONS WOULD NOT BENEFIT FROM THE SURPLUS IN THE OVERFUNDED PENSION ACCOUNTS OR QUALIFY FOR TAX DEDUCTIONS UNDER INTERNAL REVENUE SERVICE RULES QUALIFY FOR TAX DEDUCTIONS UNDER INTERNAL REVENUE SERVICE RULES SEE RELATED LETTER LETTERS TO THE EDITOR MOBIL'S PENSION PLANS WSJ SEPT 28 1993 9309020030 YY93 MM09 9309280084 930928 LEISURE & ARTS ON SPORTS WATSON'S BOYS MAKE THE BELFRY THEIR OWN BY FREDERICK C KLEIN SUTTON COLDFIELD ENGLAND AS YOGI SAID YOU CAN OBSERVE A LOT BY WATCHING BUT AT THE THREEDAY RYDER CUP GOLF MATCHES HERE IN ENGLAND'S CHILLY MIDLANDS YOU COULD OBSERVE A LOT BY LISTENING TOO THREE DISTINCT SOUNDS RANG THROUGH THE AIR AT THE BELFRY RESORT FROM FRIDAY THROUGH SUNDAY AS THE 12 BEST PROFESSIONAL GOLFERS FROM THE US AND EUROPE HAD AT IT FOR THE SPINDLY GOLD TROPHY STRAIGHTFORWARD APPLAUSE GREETED YANK SUCCESSES AND FULLTHROATED ROARS CELEBRATED THOSE OF THE HOMETEAM EUROS SOUND NO 3 WAS THE LOUDEST YET AS ONE WELLBUNDLED SPECTATOR PUT IT EARLY ON IT MEANS SEVE'S UP TO SOMETHING SEVE OF COURSE IS THE SPANIARD BALLESTEROS EUROPE'S CHARISMATIC TEAM LEADER THUS FROM SATURDAY AFTERNOON ONWARD THE GENERAL LACK OF CROWD CLAMOR GAVE A CLEAR SIGNAL OF WHAT WAS UP IT WAS THE NONSOUND OF A US COMEBACK THAT RETAINED THE CUP DOWN A DESPERATE 7 1/24 1/2 AFTER SATURDAY MORNING'S ALTERNATESHOT FOURSOMES THE VISITORS WON NINE OF THE LAST 15 MATCHES AND HALVED THREE OTHERS TO EMERGE WITH A 1513 VICTORY IN TERMS OF EMOTIONAL PUNCH THE COMPETITION DIDN'T EQUAL THE BIENNIAL EVENT'S LAST RENEWAL IN 1991 AT KIAWAH ISLAND SC THAT ONE A 14 1/213 1/2 YANK VICTORY WASN'T DECIDED UNTIL THE LAST VERY TRICKY PUTT ON THE LAST HOLE OF THE LAST DAY AMID TEARS GASPS AND CRIES THIS ONE WAS DECIDED BY TWO RELATIVE TAPINS A DAVIS LOVE III 4FOOTER FOR A PAR ON 18 THAT GAVE HIM AND HIS TEAM A VITAL SUNDAY SINGLES WIN AND JUST A FEW MOMENTS LATER A 3FOOT PAR PUTT AT 16 BY THE VETERAN RAYMOND FLOYD TO ASSURE HIMSELF OF NO LESS THAN A TIE IN HIS MATCH WITH JOSE MARIA OLAZABAL OF SPAIN THEY MEANT THE US WOULD HAVE AT LEAST 14 POINTS ENOUGH FOR A TIE THAT WOULD HAVE RETAINED THE TROPHY TWO MATCHES INCLUDING FLOYD'S WERE STILL IN PROGRESS AT THE TIME HE WON HIS AND THE US'S PAUL AZINGER WOULD HALVE WITH NICK FALDO OF ENGLAND IN THE FINALE TO SET THE FINAL COUNT NONETHELESS THERE WERE INTERNAL THRILLS GALORE DURING AND BEFORE THE LAST DAY'S ACTION IN THE EVENT THAT GIVES THE GOLFING GODS THE RARE AND NOT ALWAYS COMFORTABLE EXPERIENCE OF TEAM RESPONSIBILITY I WAS SO NAUSEATED I COULDN'T EAT BREAKFAST THIS MORNING CONFESSED PGA CHAMPION AZINGER WHOSE MATCH WITH WORLD'S NO 1 FALDO HAD BEEN EXPECTED TO BE CRUCIAL SAID LOVE OF HIS SEEMINGLY ROUTINE WINNING PAR I KNEW THE CUP WAS ON THE LINE I HAD ALL I COULD DO TO KEEP FROM THROWING UP THE VICTORY WAS THE US'S FIRST IN EUROPE SINCE 1981 IN A 64YEAROLD SERIES IT LEADS WIDELY BY VIRTUE OF A LONG STRING OF EARLIER CONQUESTS IT WAS SURPRISING ON A NUMBER OF COUNTS NOT THE LEAST OF WHICH WAS THE ABSENCE IN THE AMERICAN RANKS OF A DOMINANT PLAYER IN THE MOLD OF SUCH PAST STARS AS JACK NICKLAUS ARNOLD PALMER TOM WATSON BEN HOGAN AND SAM SNEAD GOLF'S CURRENT LEADING LIGHTS ARE FALDO AND BALLESTEROS EVEN THOUGH THE LATTER'S GAME HAS BEEN OFF THE PAST FEW YEARS MOREOVER THE US WON EVEN THOUGH ITS PUTATIVE BEST PLAYERS THE LANKY AZINGER AND LONGHITTING FRED COUPLES THE 1992 MASTERS CHAMP WERE EACH WINLESS IN FIVE MATCHES AND CONTRIBUTED BUT A POINT AND A HALF TO THE TEAM TOTAL VIA TIES THE MAJOR YANK VICTORY PRODUCERS WITH THREE TEAM OR INDIVIDUAL WINS EACH WERE THE 51YEAROLD FLOYD WHO NORMALLY PLAYS ON THE PGA SENIOR TOUR SHORTISH COREY PAVIN WHO'S NEVER WON AN INDIVIDUAL MAJOR AND PAYNE STEWART WINLESS ON THE TOURNEY TRAIL THIS YEAR THE BIGGEST US TRIUMPH OF ALL THE ONE NONPLAYING CAPTAIN WATSON CALLED THE HEART OF THE TEAM VICTORY WAS PRODUCED IN BETTERBALL PLAY ON SATURDAY AFTERNOON BY CHIP BECK AND JOHN COOK THE ONLY TWO PLAYERS WATSON HAD CHOSEN NOT TO USE BEFORE THAT POINT THROWN IN AGAINST THE CRACK BRITISH PAIR OF FALDO AND COLIN MONTGOMERIE THEY PREVAILED TWO UP IN A NERVOUS MATCH IN WHICH 14 OF THE 18 HOLES WERE HALVED THE US HAD LOST THREE OF FOUR ALTERNATESHOT FOURSOMES THAT MORNING TO TRAIL BY THREE POINTS AND THE BECKCOOK EFFORT STARTED THE 31 AFTERNOON TURNAROUND THAT PARED THE EUROPEAN EDGE TO A POINT GOING INTO THE 12 SINGLES MATCHES SUNDAY BECK ALSO WOULD WIN A KEY POINT IN SINGLES SUNDAY DOWN BY THREE HOLES WITH FIVE TO PLAY AGAINST BARRY LANE OF ENGLAND HE WENT PAR EAGLE PAR TO DRAW EVEN SUNK A GUTSY 5FOOTER TO HALVE THE 17TH AND PARRED THE LAST HOLE TO WIN WHEN LANE'S SECOND SHOT WENT INTO THE WATER ON THE 474YARDER OTHER LASTDAY HEROICS WERE SUPPLIED BY THE PREVIOUSLY HAPLESS COUPLES WHO MADE UP A TWOHOLE BACKNINE DEFICIT TO GAIN A HALFPOINT TIE WITH IAN WOOSNAM OF WALES AND BY BESPECTACLED TOM KITE WHO WAS SIX UNDER PAR FOR 15 IN BEATING LANGER 5 AND 3 JIM GALLAGHER ANOTHER LITTLESUNG YANK MADE SURE THAT FEW PROSEVE MEGACHEERS BOUNCED AROUND THE BELFRY BY BEATING BALLESTEROS 3 AND 2 ALTHOUGH THE SPANIARD MADE IT EASYISH BY BOGEYING FIVE OF THE FIRST SIX HOLES THE MATCH THAT TURNED THE FINAL DAYAS MUCH FOR ITS PLACEMENT LATE IN THE SCHEDULE AS ANYTHING ELSEWAS LOVE VS COSTANTINO ROCCA THE FIRST ITALIAN TO MAKE A EUROPEAN RYDER CUP TEAM PERMITTED TO PLAY IN ONLY ONE OF THE FOUR TWOMAN TEAM EVENTS THE STOCKY ROCCA A FORMER FACTORY WORKER WENT FROM ONE DOWN AFTER 13 TO ONE UP WITH BIRDIES ON 14 AND 15 BUT ON 17 SHOWING PRESSURE HE MISSED A 4FOOT PUTT TO ALLOW LOVE TO DRAW EVEN WITH A PAR POOR ROCCA ALSO BOGEYED 18 AFTER A POOR DRIVE TO LOSE THE HOLE AND THE CRUCIAL POINT TO ANOTHER PAR I HADN'T MADE A PUTT ALL DAY SO IT WAS ABOUT TIME SAID LOVE OF HIS 4FOOTER ON 18 THERE WERE OF COURSE LOTS OF HIGHLIGHTS IN THE EVENT THAT THREATENS TO EXCEED THE GRAND SLAM TOURNAMENTS AS GOLF'S PREMIER ATTRACTION THE BELFRY WHICH CODESIGNER AND FORMER BRITISH GOLF STAR PETER ALLISS DESCRIBED AS A DULL MISERABLELOOKING SAUCER OF LAND WHEN HE FIRST LAID EYES ON IT 20ODD YEARS AGO SHONE WITH A GREEN MATCHED ONLY BY AUGUSTA NATIONAL AMONG BIGTIME GOLF VENUES THE CROWDS 30000 STRONG EACH DAY WERE EXTRAORDINARILY PATIENT ON FRIDAY AND SATURDAY NO MORE THAN FOUR FOURSOMES WERE ON THE COURSE AT ANY ONE TIME MEANING SPECTATORS SAW RELATIVELY LITTLE ACTION FROM THEIR STAKEDOUT VANTAGE POINTS AND FOR THE MOST PART DIDN'T LET THEIR PARTISANSHIP MAR THEIR GOOD MANNERS PETER BAKER A 25YEAROLD CUP ROOKIE FROM ENGLAND WON ALL THREE OF HIS MATCHES POSTING A TOTAL OF 11 BIRDIES IN HIS TWO TEAM OUTINGS WITH WOOSNAM AND SHOOTING A SUNDAY 68 IN EDGING PAVIN WOOSNAM WON IN ALL FOUR OF HIS TEAM MATCHES FALDO UPHELD HIS NO 1 REP BY GETTING SEVEN BIRDIES IN A HALVED BETTERBALL MATCH WITH MONTGOMERIE AGAINST COUPLES AND AZINGER THAT MANY SAID WAS AMONG THE BEST IN CUP HISTORY HE GOT A HOLEINONE ON THE 189YARD 14TH HOLE WHILE HIS SUNDAY MATCH WITH AZINGER STILL WAS IN DOUBT ICY SIR NICK ALSO GOT IN THE LAST WORD CUTTING SHORT POSTMATCH POSTMORTEMS WITH A SHRUG AND A WHAT THE HELL IT'S ONLY A GAME TROUBLE IS IN THIS THING IT'LL BE TWO MORE YEARS BEFORE HIS SIDE'S TOMORROW 9309280083 930928 THE FOLLY OF PUBLIC HOUSING BY HOWARD HUSOCK THE MURDER OF ANOTHER GERMAN TOURIST IN MIAMI THREE WEEKS AGO BECAME THE OCCASION FOR HOUSING SECRETARY HENRY CISNEROS TO PROPOSE RENEWED GOVERNMENT INVESTMENT IN HOUSING AS A MEANS OF CRIME PREVENTION WE MUST ADDRESS THESE PROBLEMS OR BE ENGULFED BY THEM HE SAID BUT AS A STROLL THROUGH ANY PUBLIC HOUSING PROJECT WILL CONFIRM PUBLIC HOUSING IS NOT THE BEST WAY OF PREVENTING CRIME INDEED IT OFTEN HAS THE OPPOSITE EFFECT IF THE GOVERNMENT IS TO PLAY A CONSTRUCTIVE ROLE IN HOUSING THOSE OF LOW INCOME MR CISNEROS AND OTHER OFFICIALS MUST RECOGNIZE THAT HOUSING IS A BUILDING BLOCK OF SOCIAL STRUCTURE THE BEST HOUSING REWARDS THE HARDWORKING AND LAWABIDING PRIMARILY THROUGH PRIVATE OWNERSHIP IN THE ERA BEFORE PUBLIC HOUSING THE 1890S THROUGH THE 1940S PRIVATE OWNERSHIP WAS THE NORM IN LOWINCOME NEIGHBORHOODS NOTWITHSTANDING THE STEREOTYPE OF BIG SLUMLORDS CONTROLLING VAST NEIGHBORHOODS OWNERSHIP WAS DECENTRALIZED WITH MANY SMALL OWNERS LIVING IN AND RENTING OUT APARTMENTS IN SMALL AND MEDIUMSIZED BUILDINGS SUCH AN OWNERSHIP PATTERN COMBINED WITH THE FACT THAT MANY FAMILIES TOOK IN BOARDERS TO PAY THE RENT MADE UP A CORE OF OWNERPRESENT HOUSING LOGIC TELLS US THAT SUCH HOUSING SERVES IMPORTANT SOCIAL PURPOSES INCLUDING CRIME CONTROL VIGILANT OWNERS CONCERNED ABOUT THE UPKEEP OF THEIR PROPERTY ARE LOATH TO RENT TO CRIMINALS AND VANDALS OR THOSE WHO DON'T WATCH THEIR YOUNG CHILDREN CLOSELY THOSE WHO SEEK HOUSING ARE THUS SENT A MESSAGE THAT THEY MUST CONFORM TO SOCIAL STANDARDS AT THE SAME TIME OWNEROCCUPIED HOUSING OFFERS A MEANS FOR THOSE OF LOWINCOME TO CLIMB ON TO THE LADDER OF HOUSING OPPORTUNITY USING THE INCOME FROM RENTAL UNITS AS A MEANS OF SAVING FOR A MOVE UP TOWARD A HIGHERINCOME SINGLEFAMILY NEIGHBORHOOD PUBLIC HOUSING STOOD THIS SOCIAL STRUCTURE ON ITS HEAD PUBLIC MANAGEMENT MEANT THAT NO ONE WITH A FINANCIAL STAKE IN MAINTENANCE LIVED ON THE PREMISES PUBLIC OWNERSHIP MADE IT DIFFICULT TO TURN AWAY OR TO EVICT TENANTS ENGAGING IN CRIMINAL ACTIVITY EQUALLY IMPORTANT SUBSIDIZED RENTAL PROJECTS PROVIDED NO MEANS FOR THE POOR TO OWN AND ULTIMATELY TO TRADE UP THUS WAS THE SOCIAL STRUCTURE OF STRIVING SAVING AND BEING CAREFUL ABOUT TO WHOM TO RENT UNDERMINED MR CISNEROS'S COMMENTS AFTER THE MIAMI INCIDENT WERE COUCHED IN GENERAL TERMS BUT PREVIOUSLY HE HAD SPELLED OUT IN SOMEWHAT MORE DETAIL HOW THE GOVERNMENT SHOULD MEET THE HOUSING NEEDS OF THE MINORITY POOR IN JULY MR CISNEROS PROPOSED THAT NEW PUBLICLY SUBSIDIZED RENTAL HOUSING BE BUILT IN SUBURBAN NEIGHBORHOODS ONCE AGAIN SUCH A PROPOSAL IGNORES THE RELATIONSHIP BETWEEN HOUSING AND SOCIAL STRUCTURE BY MIXING SUBSIDIZED LOWINCOME HOUSING WITH OWNEROCCUPIED RESIDENTIAL NEIGHBORHOODS MR CISNEROS WOULD DISRUPT THE REWARD STRUCTURE OF THE AMERICAN ECONOMIC SYSTEM WITH DISASTROUS RESULTS FOR ALL CONCERNED THE GEOGRAPHER PHILLIP REES HAS FOUND THAT NOTHING NOT EVEN RACE SO DETERMINES WHO LIVES IN AN AMERICAN COMMUNITY AS DOES SOCIOECONOMIC STATUS IN OTHER WORDS FAMILIES STRIVE SAVE AND MOVE UP THE STEPS OF THE ECONOMIC LADDER WHEN THEY DO THE SYMBOL OF THEIR ACHIEVEMENT AS WELL AS ITS REWARD IS THE NEIGHBORHOOD OR MUNICIPALITY IN WHICH THEY LIVE SCATTERING SUBSIDIZED HOUSING BREAKS THE UNSPOKEN RULES OF HOUSING AND THUS INSPIRES BITTER OPPOSITION PUBLIC HOUSING BUILT IN AFFLUENT OR BLUECOLLAR NEIGHBORHOODS ALLOWS FAMILIES OR INDIVIDUALS WHO HAVE NOT FOLLOWED THE SAME ROUTE OF UPWARD MOBILITY TO SHARE THE REWARD WHAT IS UNDERMINED IS A DEFINING ASPECT OF MIDDLECLASS LIFE ACCEPTING THE DISCIPLINE OF WORK AND FAMILY AS WELL AS LAW AND ORDER TO ATTAIN AFTER A TIME COMFORTABLE AND SECURE SURROUNDINGS NEW SCATTEREDSITE PUBLIC HOUSING WOULD IRONICALLY WORK AGAINST THE INTEREST OF UPWARDLY MOBILE MINORITY FAMILIES IF RESIDUAL RACISM MAKES IT DIFFICULT FOR BLACK FAMILIES TO BUY HOMES IN CERTAIN NEIGHBORHOODS ONE CAN STILL IMAGINE OVER TIME THAT COMMUNITIES WILL LEARN TO ACCEPT FAMILIES OF SIMILAR SOCIOECONOMIC STATUS NEW PUBLIC HOUSING HOWEVER AND THE OPPOSITION IT WILL APPROPRIATELY INSPIRE IS LIKELY TO STIGMATIZE MINORITY FAMILIES GENERALLY AND MAKE THEIR GRADUAL MOVEMENT INTO THE MIDDLE CLASS MORE DIFFICULT MR CISNEROS WOULD BE WELLADVISED TO LOOK AT NEW LOCALLY BASED INITIATIVES THAT HOLD THE PROMISE OF HIGHQUALITY LOWINCOME HOUSING IN KEEPING WITH THE SOCIOLOGY OF AMERICAN HOUSING MARKETS GENERALLY OVER THE PAST DECADE THERE HAS BEEN A REVIVAL OF THE KIND OF HOUSING ONCE COMMON IN LOWINCOME URBAN NEIGHBORHOODS SMALLSCALE OWNEROCCUPIED HOUSING WITH RENTAL UNITS AND VERY MODEST SINGLEFAMILY DWELLINGS MODEST PUBLIC INVESTMENT IN KEEPING WITH CURRENT FEDERAL BUDGET CONSTRAINTS HAS HELPED THE NEW YORK CITY HOUSING PARTNERSHIP FOR EXAMPLE HAS ACQUIRED VACANT CITY LAND IN POOR NEIGHBORHOODS AND TURNED IT OVER TO SMALL BUILDERS WHO ARE ERECTING TWOFAMILY HOMES THE PARTNERSHIP WOULD PREFER TO BUILD THREEFAMILY STRUCTURES BUT CITY REGULATIONS MAKE THAT MORE DIFFICULT AND EXPENSIVE SOME 5000 UNITS HAVE BEEN BUILT SO FAR WITH ALMOST TWICE THAT NUMBER ON THE DRAWING BOARDS THERE ARE SMALL MORTGAGE INTERESTRATE SUBSIDIES FOR THE OWNERS AND A PUBLIC CONTRIBUTION OF LAND BUT NO LONGTERM PUBLIC OPERATING COSTS ANOTHER IMPORTANT NEW EFFORT TO PROVIDE OWNEROCCUPIED LOWERINCOME HOUSING IS BEING MADE BY THE GEORGIABASED CHRISTIAN GROUP HABITAT FOR HUMANITY HABITAT A NATIONAL ORGANIZATION WITH A MULTITUDE OF LOCAL CHAPTERS HAS BECOME ONE OF THE 10 LARGEST HOME BUILDERS IN THE NATION BY VIRTUE OF ITS EFFORTS TO BUILD QUITE SMALL 1200 TO 1500SQUAREFOOT SINGLEFAMILY OWNEROCCUPIED HOMES HABITAT OWNERS CARRY MORTGAGES AS LOW AS 30000 AND MAKE MONTHLY PAYMENTS OF LESS THAN 200 AGAIN GOVERNMENTASSISTED FINANCING AND THE DONATION OF VACANT LAND HAS HELPED SUCH EFFORTS ARE A FAR CRY FROM THE LARGESCALE FEDERALLY BACKED HOUSING CONSTRUCTION BOOMS OF THE TRUMAN AND JOHNSON ADMINISTRATIONS BUT THEY OFFER THE VIRTUE OF HOUSING THOSE OF MODEST MEANS WITHIN THE AMERICAN HOUSING TRADITION NOT IN A SEPARATE HOUSING ECONOMY FROM WHICH UPWARD MOBILITY IS DIFFICULT AND IN WHICH SOCIAL NORMS ARE DIFFICULT TO ENFORCE THE TIME HAS COME FOR HOUSING UNREFORM THAT IS IT IS TIME TO CAST ASIDE SOLUTIONS THAT VIOLATE THE ESSENTIAL CHARACTER OF AMERICAN NEIGHBORHOODS AND TIME INSTEAD TO FOLLOW PROMISING NEW TRENDS THAT CAN RENEW POOR NEIGHBORHOODS AND OFFER REAL HOPE TO THE POOR SCHOOL OF GOVERNMENT 9309280082 930928 WORLD MARKETS TOKYO STOCKS DECLINE PARTLY ON DIVIDEND PLAYS BUT LONDON AND FRANKFURT PRICES SHOW STRENGTH A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS DECLINED 11 MONDAY DRIVEN DOWN PARTLY BY HEAVY SELLING AFTER FISCAL FIRSTHALF DIVIDENDS WERE CAPTURED BUT THE LONDON MARKET HAD ITS HEALTHIEST PERFORMANCE IN A MONTH ON REVIVED HOPES FOR AN INTERESTRATE CUT FRANKFURT SHARES SURGED 14 ON SIGNS THAT RUSSIAN PRESIDENT BORIS YELTSIN HAD CONSOLIDATED HIS GRIP ON POWER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 11116 UP 036 REFLECTING INCREASES IN AMERICAN AND EUROPEAN MARKETS AND A DROP IN ASIA/PACIFIC MARKETS OILFIELD EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11449 UP 242 OR 22 WITH BAKER HUGHES OF THE US POSTING A 34 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 9222 DOWN 197 OR 21 WITH KYOKUYO OF JAPAN SLIDING 36 IN LOCAL CURRENCY THE NIKKEI DROPPED BRIEFLY TO THE INTRADAY LOW OF 20000 WHEN FOREIGN SECURITIES FIRMS BEGAN A SELLING WAVE AFTER CAPTURING FIRSTHALF DIVIDENDS MOST SHARES WENT EXDIVIDEND MONDAY THE HEAVY SELLING PUSHED THE NIKKEI DOWN TO THE PERCEIVED SUPPORT LEVEL OF 20000 UNSEEN IN TWO MONTHS BUT THE MARKET WAS ENCOURAGED BY THE NIKKEI'S RESILIENCE AS IT BOUNCED BACK UP TO AN INTRADAY HIGH OF 2038444 RETAILERS AND PHARMACEUTICALS PERFORMED WELL WHILE SOME BANKS WERE WEAKER AND EXPORTERS WERE MIXED SELLING PRESSURE HELD STEADY ON THE TOKYO MARKET THROUGHOUT THE DAY INITIALLY IN RESPONSE TO UNSUBSTANTIATED RUMORS THAT RUSSIAN PRESIDENT YELTSIN HAD ORDERED TROOPS TO FIRE ON PARLIAMENT THE RUMORS PRESSURED THE TOKYO FUTURES INDEX WHICH LED TO A DOWNTURN IN THE STOCK MARKET EVEN POSITIVE NEWS OUT OF THE WEEKEND MEETING OF THE GROUP OF SEVEN MAJOR INDUSTRIALIZED NATIONS FAILED TO SPUR BUYING OF STOCKS THE G7 URGED JAPAN TO REFORM ITS TAX SYSTEM AND CUT INCOME TAXES IN HOPES OF REVIVING THE SLUGGISH ECONOMY BUT STOCKMARKET INVESTORS EXPECTED THAT AN INCOMETAX REDUCTION WOULD BE TOO SMALL TO MAKE A MEANINGFUL DIFFERENCE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 211 POINTS TO 30263 THE FT30 STOCK INDEX ADVANCED 123 POINTS TO 23214 VOLUME WAS 5409 MILLION SHARES COMPARED WITH 5244 MILLION SHARES IN THE PREVIOUS SESSION THE STAGE WAS SET FOR AN OPENING SURGE FOLLOWING BRITAIN'S STANCE AT THE G7 MEETING THAT CONTINENTAL EUROPEAN INTEREST RATES SHOULD BE LOWERED TO COUNTER RECESSION AND THAT WEAK GROWTH IS MORE WORRISOME THAN INFLATION DENMARK'S CENTRAL BANK REDUCED INTEREST RATES LAST FRIDAY ADDING TO OPTIMISM IN LONDON ABOUT ANOTHER ROUND OF COORDINATED EUROPEAN RATE CUTS THESE EXPECTATIONS LED TO RISES IN LONDON SECTORS SENSITIVE TO LENDING RATES SUCH AS RETAILERS AND BANKS LATER A SHARPLY HIGHER OPENING ON WALL STREET HELPED LONDON EQUITIES ADVANCE FURTHER THE MARKETS ALSO WERE FUELED BY NEWS THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AGREED ON A FOURTHQUARTER PRODUCTION CEILING THIS BOOSTED LONDON OIL STOCKS SHARPLY IN FRANKFURT THE DAX 30STOCK INDEX WHICH LOST 3065 POINTS FRIDAY REBOUNDED 2632 TO 191218 ALL THE SHARES IN THE INDEX ADVANCED PRICES JUMPED SHARPLY AT THE OPENING AND REMAINED BUOYANT THROUGHOUT THE SESSION IN REACTION TO LAST FRIDAY'S DROP AND TO THE NEWS OUT OF RUSSIA AS WELL AS SHORT COVERING OR BUYING STOCKS TO LIMIT LOSSES IN REPLACING SHARES BORROWED AND SOLD IN HOPES PRICE DECLINES WOULD ALLOW A PROFIT ALSO GERMANY'S ECONOMIC PICTURE APPEARED TO BE IMPROVING ACCORDING TO A BUSINESSCONFIDENCE SURVEY BY THE IFO ECONOMIC THINK TANK IN PARIS EQUITIES RECORDED MODERATE GAINS DESPITE SOME DISAPPOINTMENT THAT THE FRENCH CENTRAL BANK DIDN'T CUT INTEREST RATES AT ITS SECURITIES REPURCHASE AGREEMENT AT LEAST A SMALL MONETARY EASING HAD BEEN EXPECTED AS A GESTURE BUT THE STOCK EXCHANGE FOUND SUPPORT FROM FRESH LIQUIDITY AS THE OCTOBER TRADING PERIOD BEGAN LAST FRIDAY IN AMSTERDAM STOCKS STRENGTHENED AS FEARS ABOUT THE RUSSIAN POLITICAL CRISIS EASED BUT DEALINGS WERE THIN AND GAINS RESULTED MAINLY FROM BUYING FROM THE OPTIONS EXCHANGE STOCK PRICES ALSO WERE SUPPORTED BY HIGHER BOND PRICES AND FIRMER TONES ON STOCK MARKETS ABROAD IN MILAN SHARES UNEXPECTEDLY ENDED HIGHER ON SPECULATIVE BUYING PARTICULARLY IN THE AUTO SECTOR AND ON POSITIONSQUARING IN MADRID PRICES ROSE SUPPORTED BY STRENGTH IN THE SPANISH BOND MARKET AND EUROPEAN BOURSEPRICES RALLIED ON STRONG DEMAND FOR BANKING AND PHARMACEUTICAL SHARES BANKING ISSUES GOT A LIFT FROM HOPES FOR LOWER SHORTTERM RATES AND DRUG AND DOLLARSENSITIVE ISSUES GOT SUPPORT FROM DEALINGS IN THE US CURRENCY WHICH REVERSED EARLY WEAKNESS IN STOCKHOLM STOCKS OPENED WEAKLY BUT RALLIED IN THE LAST HOUR OF TRADING TO END SHARPLY HIGHER BECAUSE OF STRONG DEMAND FROM FOREIGN INVESTORS A STRONG START FOR NEW YORK EQUITIES AND THE SWEDISH KRONA CURRENCY'S RELATIVE STABILITY IN BRUSSELS PRICES ROSE SLIGHTLY CONSOLIDATING AFTER LAST WEEK'S DECLINE IN SYDNEY STOCKS SLIPPED AS LITTLE FRESH NEWS EMERGED TO PROVIDE DIRECTION AFTER THE EUPHORIA FADED FROM THE AUSTRALIAN CITY'S WINNING BID TO HOST THE OLYMPIC GAMES IN THE YEAR 2000 IN HONG KONG POLITICAL UNCERTAINTIES PUSHED SHARES DOWN SHARPLY IN THIN TRADING FOLLOWING THE FRIDAY SLUMP TRIGGERED BY DISAPPOINTMENT ABOUT BEIJING'S FAILURE TO BE SELECTED FOR THE 2000 OLYMPICS CHINA AND BRITAIN ENDED THEIR LATEST ROUND OF TALKS ON HONG KONG'S POLITICAL REFORM PLAN MONDAY BUT LITTLE PROGRESS WAS REPORTED IN TAIPEI SHARE PRICES LOST GROUND AS LAST WEEK'S LACKLUSTER SENTIMENT CONTINUED THE FINANCIAL SECTOR REMAINED THE LARGEST LOSER IN MANILA EQUITIES ROSE SLIGHTLY IN A CONTINUING CONSOLIDATION FOLLOWING LAST WEEK'S CORRECTION IN SEOUL OPTIMISM ABOUT THE SOUTH KOREAN ECONOMY'S PROSPECTS SENT STOCKS SHARPLY HIGHER SMALL MANUFACTURING ISSUES WHICH HAVE LOGGED BIG LOSSES SINCE HITTING THEIR HIGHS THIS YEAR IN JUNE WERE THE BIGGEST GAINERS 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 9309280081 930928 WHY THE LEFTISTS WON THE POLISH ELECTION BY LESZEK BALCEROWICZ THE TRIUMPH OF THE FORMER COMMUNIST PARTY AND ITS ALLIES IN POLAND'S PARLIAMENTARY ELECTIONS EARLIER THIS MONTH HAS LED SOME ANALYSTS TO DEEM RADICAL ECONOMIC REFORM TOO RISKY POLITICALLY AND TO URGE THE GOVERNMENTS OF THE EAST EUROPEAN COUNTRIES TO PURSUE SOFTER APPROACHES TO THEIR ECONOMIC PROBLEMS THE DIAGNOSIS IS WRONG AND ITS IMPLICATION IS VERY DANGEROUS TO THE COUNTRIES CONCERNED EVEN SUCCESSFUL ECONOMIC REFORMS GENERATE SOME DISSATISFACTION SUCH REFORMS TRANSFORM HIDDEN UNEMPLOYMENT INTO OPEN UNEMPLOYMENT AND PRODUCE SHIFTS IN THE RELATIVE PAY AND PRESTIGE OF MANY GROUPS NEW ENTREPRENEURS MANAGERS LAWYERS ACCOUNTANTS ETC ARE ON THE WAY UP AND AS A RESULT SOME POWERFUL GROUPS SUCH AS MINERS ARE ON THE WAY DOWN NOT EVERYBODY CAN MAKE A DIRECT USE OF RADICALLY ENLARGED ECONOMIC FREEDOM AND THOSE WHO CAN'T OFTEN LOOK WITH ENVY AT THE NEW INGROUPS BUT IT IS A MISTAKE TO REJECT THE RADICAL ECONOMIC REFORMS SIMPLY BECAUSE THEY PRODUCE THESE SIDE EFFECTS POSTPONING DIFFICULT STEPS IS EVEN MORE COSTLY AND RISKY SOCIALLY AS A LOOK AT UKRAINE OR RUSSIA SHOWS RADICAL REFORMS AS DISTINCT FROM MUDDLING THROUGH ALSO PRODUCE ECONOMIC DYNAMISM DESPITE INHERITED HYPERINFLATION AND SHORTAGES POLAND HAS HAD A POSITIVE RATE OF GROWTH SINCE LATE 1991 AND THIS YEAR IT IS GOING TO BE THE FASTEST GROWING COUNTRY IN EUROPE POLAND'S DECLINE IN AGGREGATE CONSUMPTION IN 199091 WAS BY FAR THE SMALLEST AMONG THE CENTRAL AND EASTERN EUROPEAN COUNTRIES INCLUDING THOSE THAT PURSUED SOFTER APPROACHES THOSE WHO ADVISE COUNTRIES WITH HYPERINFLATION TO GO THE SOFT WAY ARE IN FACT ADVISING THEM TO PUT OUT THE FIRE SLOWLY ANOTHER FACTOR IN THE ELECTION RESULTS WAS THAT WHILE THE CONTROLLED MASS MEDIA UNDER COMMUNISM ENGAGED IN PROPAGANDA EMPHASIZING SUCCESS THE FREE MASS MEDIA HAVE LARGELY FOCUSED ON THE NEGATIVE THE FREEING OF THE MASS MEDIA IS OF COURSE A POSITIVE DEVELOPMENT BUT MANY VOTERS NO DOUBT CONFUSED THE GREATER VISIBILITY OF ALL KINDS OF NEGATIVE PHENOMENA WITH THEIR TRUE GROWTH ENVY AND THE MEDIA'S FOCUS ON NEGATIVE NEWS DID TEND TO REDUCE THE POPULARITY OF THE REFORM PARTIES BUT THE SHIFT IN THE DISTRIBUTION OF THE PARLIAMENTARY SEATS TOWARD THE PARTIES OF THE LEFT WAS MAGNIFIED BY SOME SPECIAL FACTORS OF A NONECONOMIC NATURE WITHOUT THESE FACTORS THE ELECTORAL RESULTS COULD HAVE BEEN MUCH DIFFERENT THE NATIONALISTIC AND RIGHTIST PARTIES CONDUCTED AN AGGRESSIVE CAMPAIGN AGAINST THE REFORMS AND AGAINST THE PARTIES THAT CARRIED THEM OUT IN THE PROCESS THEY WERE REJECTED BY THE ELECTORATE BUT MANAGED TO WEAKEN THE POSITION OF THE REFORM PARTIES AND THUS STRENGTHENED THE POSITION OF THE LEFTIST ONES THE PARTIES OF THE LEFT OPPOSED ANTIABORTION LEGISLATION AND OTHER MEASURES PUSHED BY THE CATHOLIC CHURCH THIS GAINED THEM MANY VOTES AS SUCH LEGISLATION WAS RESENTED BY THE MAJORITY OF POLES A NEW ELECTORAL LAW FAVORED THE LARGER PARTIES THIS WAS IN ITSELF A POSITIVE CHANGE NECESSARY TO REDUCE THE EXTREME FRAGMENTATION OF THE PARTY SYSTEM BUT THE REFORM PARTIES COMMITTED A GRAVE MISTAKE BY GOING SEPARATELY INTO THE ELECTIONS GIVEN THE NEW ELECTORAL LAW THIS COST THEM MANY SEATS BY CONTRAST THE POSTCOMMUNIST ALLIANCE OF THE DEMOCRATIC LEFT A COALITION GAINED FEWER THAN 21 OF THE VOTES BUT 36 OF THE SEATS BESIDES THESE INTERNAL FACTORS THE WEST HAD ITS PART IN THE OUTCOME OF THE POLISH ELECTIONS PETTY PROTECTIONISM ESPECIALLY IN THE EUROPEAN COMMUNITY WEAKENED THE POSITION OF REFORMERS BY WORSENING THE ECONOMIC SITUATION AND BY SETTING A BAD EXAMPLE THE PEASANT PARTY PREVIOUSLY A JUNIOR PARTY TO THE COMMUNISTS EMERGED SECOND IN THE ELECTIONS BY POINTING TO THE DISASTROUS COMMON AGRICULTURAL POLICY OF THE EC AS SOMETHING THE POLISH PEASANTS SHOULD HAVE THE ELECTIONS HAVE NOT BEEN AN UNMITIGATED DISASTER HOWEVER THEY ALSO BROUGHT ABOUT SOME POSITIVE RESULTS THE POPULIST PARTIES HAVE LOST COMPLETELY A SIGN THAT THE POLISH ELECTORATE HAS MATURED WHILE STAN TYMINSKI WON 20 OF THE VOTES IN THE 1990 PRESIDENTIAL ELECTIONS HIS X PARTY OBTAINED ONLY 2 IN THE RECENT PARLIAMENTARY ELECTIONS VOTER PARTICIPATION WAS 52 COMPARED WITH 43 TWO YEARS AGO DEMOCRACY IS THUS GAINING GROUND IN POLAND FINALLY THERE IS MUCH LESS FRAGMENTATION ON THE POLITICAL SCENE ONLY THE FUTURE WILL TELL EXACTLY WHAT ECONOMIC POLICIES THE NEW GOVERNMENT WILL IMPLEMENT HOWEVER THERE ARE SOME POWERFUL CONSTRAINTS THAT CAN PREVENT IT FROM STRAYING RADICALLY FROM THE PRESENT COURSE THE CENTRAL BANK IS LARGELY INDEPENDENT AND LEGALLY RESPONSIBLE FOR THE STABILITY OF MONEY THE POLISH ZLOTY IS CONVERTIBLE AND ITS CONVERTIBILITY IS WIDELY APPRECIATED BY THE POLISH PUBLIC THIS CAN ACT AS A CHECK ON IRRESPONSIBLE MACROECONOMIC POLICIES ANOTHER CHECK IS THE RADICALLY IMPROVED SUPPLY OF GOODS ON THE MARKET THE PRIVATE SECTOR ACCOUNTS FOR 60 OF TOTAL EMPLOYMENT AND CAN MAKE ITS VOICE FELT THESE AND OTHER CONSTRAINTS WERE CREATED BY THE RADICAL ECONOMIC REFORMS OF THE PAST FOUR YEARS THESE REFORMS ARE NOT THE MAIN REASONS FOR THE ELECTORAL RESULTS IN POLAND AND THEY CREATED THE MECHANISMS FOR THEIR OWN SELFPRESERVATION EVEN UNDER A NEW POLITICAL CONSTELLATION MR BALCEROWICZ IS THE AUTHOR OF THE SHOCK THERAPY ECONOMIC PROGRAM IN POLAND AND FORMER DEPUTY PRIME MINISTER HE IS A VISITING FELLOW AT THE WORLD BANK IN WASHINGTON 9309280080 930928 BUSINESS BRIEF PITTSTON TO ACQUIRE ADDINGTON RESOURCES' COAL MINING ASSETS STAMFORD CONN PITTSTON CO SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE MOST OF THE COALMINING ASSETS AND COAL SALES CONTRACTS OF ADDINGTON RESOURCES INC FOR 157 MILLION THE COMPANY SAID THE ACQUISITION BY ITS PITTSTON MINERALS GROUP UNIT WILL ADD 85 MILLION TONS ANNUALLY OF LOW SULFUR COAL PRODUCTION TO ITS PITTSTON MINERAL GROUP'S OPERATIONS INCREASING ITS TOTAL COAL PRODUCTION BY 50 ALL OF THE COAL PROPERTIES TO BE PURCHASED ARE IN WEST VIRGINIA KENTUCKY AND OHIO PITTSTON SAID IT EXPECTS TO COMPLETE THE PURCHASE BEFORE DEC 31 SUBJECT TO CERTAIN APPROVALS INCLUDING THOSE OF ADDINGTON RESOURCES' SHAREHOLDERS PITTSTON HAS BUSINESSES IN COAL GOLD MINING SECURITY SERVICES AND AIR FREIGHT ADDINGTON RESOURCES IS BASED IN ASHLAND KY PITTSTON SAID ITS CURRENT INTENTION IS TO HELP FINANCE THE TRANSACTIONS THROUGH A PRIVATE PLACEMENT OF 70 MILLION TO 80 MILLION OF A NEW SERIES OF PREFERRED STOCK CONVERTIBLE INTO PITTSTON MINERALS COMMON PITTSTON SAID IT ESTIMATES THAT CASH FLOW FROM THE PROPOSED ACQUISITION WILL COVER ANTICIPATED PREFERRED DIVIDENDS AND RETIRE THE ACQUISITION DEBT WITHIN FIVE YEARS FOLLOWING THE ANNOUNCEMENT STANDARD & POOR'S CORP AFFIRMED ITS TRIPLEBMINUS RATING ON PITTSTON CO'S SENIOR UNSECURED DEBT AND ITS DOUBLEBPLUS RATING ON THE COMPANY'S SUBORDINATED DEBT PITTSTON HAS ABOUT 200 MILLION OF DEBT OUTSTANDING ADDINGTON SAID IT WILL USE THE PROCEEDS TO REDEEM ITS 125 MILLION 12 SENIOR SECURED NOTES AND TO REDUCE OTHER DEBT OUTSTANDING THIS TRANSACTION SUBSTANTIALLY STRENGTHENS ADDINGTON RESOURCES AND ALLOWS US TO DEVELOP VERY PROMISING GROWTH OPPORTUNITIES IN WASTE MANAGEMENT AND MINING TECHNOLOGY SAID LARRY ADDINGTON CHAIRMAN OF THE COAL MINING AND SOLID WASTE DISPOSAL CONCERN ADDINGTON WILL CONTINUE TO OWN AND OPERATE FOUR EASTERN KENTUCKY MINES WITH ESTIMATED ANNUAL PRODUCTION CAPACITY OF THREE MILLION TONS IN ADDITION ADDINGTON SAID IT WILL ENTER INTO A COALSUPPLY CONTRACT WITH PITTSTON MINERALS 9309280079 930928 LAW BROADENING OF CONDITIONS USED TO FORCE REPORTERS TO GIVE UP NOTES ALARMS MEDIA BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS FOR NEWS ORGANIZATIONS ARE REACTING WITH ALARM TO A COURT RULING THAT BROADENS THE CONDITIONS UNDER WHICH REPORTERS CAN BE COMPELLED TO HAND OVER THEIR NOTES FOR USE IN CRIMINAL CASES THE SECOND US CIRCUIT COURT OF APPEALS LONG REGARDED AS A LEADING DEFENDER OF FIRST AMENDMENT PROTECTIONS UNANIMOUSLY RULED LAST WEEK THAT REPORTERS FROM FOUR NEWSPAPERS AND TWO NETWORKS MUST RELINQUISH THEIR NOTES AND VIDEOTAPE OUTTAKES OF INTERVIEWS WITH BRUCE CUTLER A NEW YORK CRIMINALDEFENSE LAWYER MR CUTLER HAD SOUGHT THE NOTES TO ASSIST HIM IN DEFENDING AGAINST A FEDERAL CONTEMPT CITATION HE WAS ACCUSED OF VIOLATING COURT RULES LIMITING LAWYERS' COMMENTS TO THE PRESS DURING THE 1991 RACKETEERING TRIAL OF JOHN GOTTI MR CUTLER'S CLIENT AT THE TIME IN RECENT YEARS NEWS ORGANIZATIONS HAVE SUCCESSFULLY ARGUED TO THE NEW YORKBASED APPEALS COURT THAT A REPORTER'S NOTES COULD BE OBTAINED ONLY UNDER THREE CONDITIONS IF THERE WAS A CLEAR AND SPECIFIC REASON SHOWING THAT THE INFORMATION BEING SOUGHT WAS RELEVANT IF THE NOTES WERE CRITICAL TO THE LEGAL CLAIM AND IF THE INFORMATION SOUGHT FROM THE NOTES WAS UNOBTAINABLE ANY OTHER WAY LAST THURSDAY'S RULING SUPPLANTS THOSE STRICT PROTECTIONS WITH A VAGUELY ARTICULATED CONSTITUTIONAL STANDARD THAT APPEARS TO REQUIRE ONLY THAT A REPORTER'S NOTES AND OUTTAKES BE RELEVANT TO THE CASE IN ORDER TO BE OBTAINED BY PARTIES IN A FEDERAL CRIMINAL TRIAL IT REMOVES A SUBSTANTIAL AMOUNT OF PROTECTION SAID ROBERT D SACK A FIRST AMENDMENT SPECIALIST WHO REPRESENTED NEWSDAY IN THE CASE AND WHO SEPARATELY ALSO REPRESENTS THIS NEWSPAPER MANY STATES INCLUDING NEW YORK HAVE ENACTED SOCALLED SHIELD LAWS THAT PROTECT REPORTERS FROM HAVING TO PART WITH THEIR NOTES UNDER MANY CIRCUMSTANCES BUT SUCH LAWS ARE SUBJECT TO THE POLITICAL WILL OF EACH STATE'S LEGISLATURE AND ALSO POTENTIALLY SUBJECT TO REPEAL THEY DON'T ESTABLISH THE KIND OF BROAD NATIONAL PROTECTION CONFERRED BY THE US CONSTITUTION AS INTERPRETED BY THE COURTS IN THE CUTLER CASE THE STATE'S SHIELD LAW DOESN'T APPLY ANYWAY BECAUSE HIS CONTEMPT TRIAL IS A FEDERAL CASE MEDIA LAWYERS INVOLVED IN THE CASE SAID THE SECOND CIRCUIT RULING APPEARS TO APPLY ONLY TO FEDERAL CRIMINAL CASES AND NOT TO CIVIL SUITS THOUGH THIS ISN'T ENTIRELY CLEAR LAWYERS WERE ALSO RELIEVED THAT THE DECISION IS BINDING ONLY IN NEW YORK CONNECTICUT AND VERMONT THE THREE STATES COVERED BY THE SECOND CIRCUIT AN APPEAL IS UNLIKELY ACCORDING TO SEVERAL LAWYERS IN THE CASE BECAUSE THE CURRENT MAKEUP OF THE SUPREME COURT MAKES IT DOUBTFUL THAT THE PRESS POSITION WOULD PREVAIL BOTH DEFENSE LAWYERS AND PROSECUTORS DURING MR GOTTI'S HIGHLY PUBLICIZED 1991 TRIAL WERE WARNED NOT TO MAKE ANY STATEMENTS THAT MIGHT INFLUENCE THE PROCEEDING YET IN INTERVIEWS WITH REPORTERS DURING COURT BREAKS THE OUTSPOKEN MR CUTLER REPEATEDLY ATTACKED THE PROSECUTION'S CASE CHARACTERIZING IT AS VENDETTA BASED ON STALE AND RECYCLED ALLEGATIONS MR CUTLER'S NEW YORK ATTORNEY FREDERICK P HAFETZ CONTENDS THAT HE NEEDS ACCESS TO REPORTERS' NOTES AND TELEVISION NEWS OUTTAKES TO DETERMINE WHETHER MR CUTLER WAS MAKING HIS COMMENTS ONLY IN RESPONSE TO COMMENTS MADE BY THE GOVERNMENT THE NEWS ORGANIZATIONS INVOLVED ARE THE NEW YORK TIMES NEWSDAY THE NEW YORK DAILY NEWS AND THE NEW YORK POST VIDEO OUTTAKES WERE SUBPOENAED FROM CBS INC AND FOX TELEVISION STATIONS INC IN LEGAL BRIEFS THE NEWS ORGANIZATIONS RELIED ON A 1983 FEDERAL APPEALS COURT DECISION IN NEW YORK THAT BARRED DEFENSE LAWYERS FROM OBTAINING DOCUMENTS AND NOTES FROM THE COAUTHOR OF A SPORTS ILLUSTRATED ARTICLE ABOUT FIXING COLLEGE BASKETBALL GAMES THE COAUTHOR IT TURNED OUT WAS THE GOVERNMENT'S CHIEF PROSECUTION WITNESS DEFENSE LAWYERS ARGUED THAT THEY NEEDED ACCESS TO HIS NOTES AND MATERIALS IN ORDER TO IMPEACH HIS TESTIMONY THE APPEALS COURT REJECTED THAT ARGUMENT ON GROUNDS THAT OTHER IMPEACHMENT EVIDENCE WAS ALREADY AVAILABLE UNTIL THURSDAY'S OPINION THAT CASE KNOWN AS US VS BURKE HAD BEEN CONSTRUED AS PROVIDING REPORTERS BROAD PROTECTION IN ITS LATEST OPINION THE APPEALS PANEL NARROWED THE IMPACT OF THE BURKE DECISION TO ITS UNIQUE SET OF FACTS AND RELIED INSTEAD ON A BROAD 1972 US SUPREME COURT CASE THAT PERMITS REPORTERS TO BE SUBPOENAED TO TESTIFY BEFORE GRAND JURIES INVESTIGATING CRIME THE RULING APPLIES ONLY TO NOTES PERTAINING TO MR CUTLER'S PRESS STATEMENTS NOT THOSE MADE BY GOVERNMENT OFFICIALS THE COURT RULED THAT UNPUBLISHED NOTES AND OUTTAKES OF COMMENTS BY GOVERNMENT OFFICIALS WERE IRRELEVANT SINCE MR CUTLER COULDN'T HAVE KNOWN ABOUT THEM US VS CUTLER SECOND US CIRCUIT COURT OF APPEALS NEW YORK 9309280077 930928 LENGTH OF THE COUNCILMAN'S TERM MAY DEPEND ON MORE THAN VOTES BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS CAN A CITIZEN SERVE ON A CITY COUNCIL FROM BEHIND BARS THAT QUESTION IS ON THE MINDS OF MANY IN THIS UNIVERSITY COMMUNITY AND IT ISN'T ACADEMIC ON NOV 2 CAMBRIDGE RESIDENTS WILL DECIDE THE POLITICAL FUTURE OF WILLIAM WALSH A COUNCIL MEMBER WHO IS SEEKING REELECTION WHILE FACING TRIAL ON 59 COUNTS OF FEDERAL BANK FRAUD AND MANY HERE BELIEVE HE HAS A DECENT CHANCE OF WINNING ANOTHER TWOYEAR TERM MR WALSH A LOCAL ATTORNEY AND REALESTATE DEVELOPER STANDS ACCUSED WITH FOUR OTHERS OF DEFRAUDING THE DIME SAVINGS BANK OF NEW YORK BY OBTAINING CONDOMINIUM MORTGAGES UNDER FALSE PRETENSES NO TRIAL DATE HAS BEEN SET FOR THE DEFENDANTS WHO HAVE EACH ENTERED PLEAS OF NOT GUILTY AS COUNCILMAN MR WALSH HAS LONG CHAMPIONED A LARGE GROUP OF LOCAL PROPERTY OWNERS WHO OPPOSE CAMBRIDGE'S RENTCONTROL LAW THE CITY'S MOST DIVISIVE ISSUE CRITICS COMPLAIN THAT THE LAW WHICH AFFECTS ABOUT 40 OF THE CITY'S HOUSING STOCK DISCOURAGES UPKEEP OF PROPERTIES THEY ALSO NOTE THAT BECAUSE THERE ARE NO INCOMEELIGIBILITY REQUIREMENTS RENTCONTROL TENANTS INCLUDE NOT ONLY THE NEEDY BUT WELLTODO LAWYERS AND POLITICIANS THE MOST IMPORTANT ISSUE TO ME IS THE RENTCONTROL ISSUE AND THE MOST EFFECTIVE AND THE MOST ARTICULATE AND RELENTLESS COUNCILOR ON THIS ISSUE HAS BEEN BILL WALSH SAYS DENISE JILLSON AN ANTIRENTCONTROL ACTIVIST WHO PLANS TO VOTE FOR MR WALSH BUT HOPES HE WOULD DO THE HONORABLE THING AND STEP DOWN IF CONVICTED IT APPEARS THAT MANY OTHER RENTCONTROL OPPONENTS MAY ALSO BE WILLING TO OVERLOOK MR WALSH'S LEGAL DIFFICULTIES JUDGING BY THE PREPONDERANCE OF WALSH CAMPAIGN SIGNS THAT HAVE SPRUNG UP ON LAWNS THROUGHOUT THE CITY ANYTHING SHORT OF HIGH TREASON IS NOT LIKELY TO CHANGE THEIR MINDS ONE LOCAL POLITICAL PUNDIT TOLD THE CAMBRIDGE CHRONICLE THE NEWSPAPER HAS CALLED FOR THE CITY MANAGER TO INVESTIGATE WHETHER THERE IS ANY CITY LAW THAT BARS SOMEONE FROM SERVING ON THE COUNCIL WHILE SERVING A PRISON SENTENCE CITY MANAGER BOB HEALY SAYS HE EXPECTS THE QUESTION WILL BE ANSWERED BEFORE ELECTION DAY MR WALSH WON'T SAY WHAT HE WILL DO IF HE WINS AND IS LATER CONVICTED HOW CAN I ANSWER THE QUESTION HE ASKS IF I HAD TO APPEAL THIS TO THE SUPREME COURT I WOULD 9309280076 930928 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS SEPT 28OCT 11 SIXTY 19THCENTURY LANDSCAPE PORTRAIT AND STILLLIFE PAINTINGS FROM THE NATIONAL ACADEMY OF DESIGN ON VIEW ARE WORKS OF AMERICAN IMPRESSIONISM AND THE HUDSON RIVER SCHOOL INCLUDING ALBERT BIERSTADT'S ON THE SWEET WATER FREDERIC EDWIN CHURCH'S SCENE ON THE MAGDALENE AND CHILDE HASSAM'S JEWEL BOX NATIONAL ACADEMY OF DESIGN FIFTH AVENUE AT 89TH STREET THROUGH NOV 14 212 3694880 DRAWN FROM BOTH THE MUSEUM'S PERMANENT COLLECTION AND FROM LOCAL PRIVATE COLLECTIONS THIS EXHIBIT ILLUSTRATES THE RICHNESS AND VISION OF MATISSE'S WORK IN A VARIETY OF MEDIA THE SHOW FEATURES 60 WORKS INCLUDING PAINTINGS BRONZES DRAWINGS PRINTS AND LITHOGRAPHS MINNEAPOLIS INSTITUTE OF ARTS 2400 THIRD AVE SOUTH OCT 10JAN 9 612 8703131 PRESENTED BY THE ATLANTA COMMITTEE FOR THE OLYMPIC GAMES THIS IS AN EIGHTWEEK CELEBRATION OF THE 25TH ANNIVERSARY OF THE 1968 OLYMPIC GAMES IN MEXICO CITY THE CITYWIDE FESTIVAL FEATURES A 93PIECE EXHIBIT OF PRECOLUMBIAN ART FROM MEXICO CITY'S NATIONAL MUSEUM OF ANTHROPOLOGY MEXICAN DANCE AND MUSIC PERFORMANCES AND A FILM FESTIVAL THIS FESTIVAL DEDICATED TO MEAD AND HER CONTRIBUTION TO VISUAL ANTHROPOLOGY SHOWCASES INDEPENDENT FILMMAKERS FROM AROUND THE WORLD A SPECIAL FEATURE OF THIS YEAR'S EVENT IS A RETROSPECTIVE OF FILMS BY TIMOTHY ASCH WHO FOR TWO DECADES HAS DOCUMENTED THE DYNAMICS OF SMALL INDONESIAN COMMUNITIES AFTER SCREENINGS HERE SELECT FILMS BEGIN A NATIONAL TOUR AT THE PACIFIC FILM ARCHIVE UNIVERSITY OF CALIFORNIA BERKELEY AMERICAN MUSEUM OF NATURAL HISTORY CENTRAL PARK WEST AT 79TH STREET OCT 410 212 7695305 ONE OF THE COUNTRY'S RISING SMALL COMPANIES BEGINS ITS 35TH SEASON WITH MOZART'S THE MAGIC FLUTE IN A WORLDPREMIERE ENGLISH TRANSLATION BY PAUL GRIFFITHS MUSIC CRITIC FOR THE NEW YORKER IAN JON BOURG IS CAST AS TAMINO AND KAREN BOGAN AS PAMINA RICHARD CARSEY CONDUCTS THIS WILL BE THE FIRST PRODUCTION AT THE NEWLY CONSTRUCTED 18THCENTURY ITALIAN BAROQUE OPERA HOUSE SOPRANO JUNE ANDERSON SINGS THE TITLE ROLE IN A NEW PRODUCTION OF VERDI'S LA TRAVIATA WHICH OPENS THE 39TH SEASON HERE TENOR GIUSEPPE SABBATINI IS ALFREDO WHILE RUSSIAN BARITONE DMITRI HVOROSTOVSKY MAKES HIS AMERICAN OPERATIC DEBUT AS THE ELDER GERMONT FRANK GALATI DIRECTS BRUNO BARTOLETTI CONDUCTS CIVIC OPERA HOUSE MADISON AND WACKER SEPT 28 OCT 1 AND 4 PERFORMANCES RESUME IN JANUARY 312 3322244 BODO IGESZ OF THE METROPOLITAN OPERA DIRECTS THE SEASON OPENER ROSSINI'S THE BARBER OF SEVILLE DAVID COX AND MEL ULRICH SHARE THE TITLE ROLE CYNTHIA CLAYTON AND HEIDI PERSON SING ROSINA DAVID ROHRBAUGH CONDUCTS MONTGOMERY THEATER MARKET STREET AT SAN CARLOS THROUGH OCT 3 9309280075 930928 ECONOMY OPEC AGREES TO PRODUCTION CEILING AS IRAN AND SAUDI ARABIA COOPERATE BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA IRAN'S PRESIDENT AND SAUDI ARABIA'S KING LENT A HELPING HAND TO OPEC WHOSE 12 MEMBERS THEN BEGAN MOVING TOWARD A PACT MEANT TO CAP RUNAWAY OIL PRODUCTION STILL UNRESOLVED ON THE THIRD DAY OF THE OPEC MEETING WAS THE ISSUE OF QUOTAS FOR INDIVIDUAL COUNTRIES NEGOTIATIONS TO SET THESE LEVELS WERE CONTINUING A CONSENSUS ON A PART OF THE AGREEMENT A DAILY OUTPUT CEILING OF 245 MILLION BARRELS OR LESS FOR THE FOURTH QUARTER WAS REACHED YESTERDAY BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SHORTLY AFTER THE NEWS THAT IRANIAN PRESIDENT HASHEMI RAFSANJANI HAD PHONED THE SAUDI MONARCH KING FAHD AND THAT THE TWO HAD AGREED TO COOPERATE IN TRYING TO STOP THE FALL IN PETROLEUM PRICES MINISTERS SUGGESTED THAT AN OVERALL AGREEMENT NOW APPEARED TO BE WITHIN GRASP BUT THEY WERE MINDFUL OF THE CONFLICTING QUOTA CLAIMS THAT WERE MAKING IT ELUSIVE STILL THEY SAID THAT YESTERDAY'S SUCCESS POINTED THE WAY TO HIGHER OIL PRICES WHICH HAVE FALLEN 3 A BARREL SINCE OPEC LAST MET IN JUNE THIS WAS THE TURNING POINT AND WILL SEND A GOOD SIGNAL TO THE MARKET SAID ALIRIO PARRA VENEZUELA'S OIL MINISTER AND A MEMBER OF A THREEMAN GROUP DUBBED THE WISE MEN CHOSEN BY THE OTHERS TO FACILITATE AN AGREEMENT BY ACTING AS GOBETWEENS OIL PRICES DID JUMP INITIALLY YESTERDAY AFTER WORD OF THE NEW CEILING REACHED TRADERS SOME GAINS WERE ERASED DURING THE DAY BUT CRUDE OIL FUTURES SETTLED HIGHER IN BOTH LONDON AND NEW YORK ON LONDON'S INTERNATIONAL PETROLEUM EXCHANGE BRENT CRUDE FOR NOVEMBER DELIVERY ROSE 26 CENTS TO 1655 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE NOVEMBER CRUDE SETTLED 16 CENTS HIGHER AT 1773 A BARREL ANALYSTS AND TRADERS HERE TO OBSERVE THIS CRUCIAL MEETING OF THE OIL MINISTERS GENERALLY AGREED THAT IF THERE IS EVIDENCE THE EXPORTERS ARE INDEED CURBING THEIR PRODUCTION IN THE WEEKS AHEAD PRICES SHOULD CONTINUE TO RECOVER FROM RECENT THREEYEAR LOWS A CHANGE IN THE OIL MARKET'S ASSESSMENT OF OPEC'S CREDIBILITY IS WORTH A DOLLAR A BARREL IN WORLD OIL MARKETS IF THE OIL MINISTERS DON'T RENEGOTIATE THEIR QUOTAS WHEN THEY MEET AGAIN IN NOVEMBER SAID MEHDI VARZI RESEARCH DIRECTOR FOR KLEINWORT BENSON SECURITIES LTD THE NEW CEILING IS INTENDED TO REDUCE THE FLOW OF OPEC OIL TO WORLD MARKETS BY 200000 BARRELS A DAY OR MORE FROM THE CURRENT VOLUMES OF ABOUT 247 MILLION BARRELS A DAY THE FINAL LEVEL OF THE CEILING WHICH IS TO BE 245 MILLION BARRELS A DAY OR LESS DEPENDS ON THE INDIVIDUAL COUNTRY SHARES WHICH WERE STILL BEING DEBATED LAST NIGHT THE DAY HERE HAD BEGUN WITH THE SURPRISING NEWS THAT GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER HAD MET HIS SAUDI COUNTERPART HISHAM NAZER FOR BREAKFAST IN THE LATTER'S SUITE AT THE INTERCONTINENTAL HOTEL DELEGATES WERE HARD PUT TO REMEMBER THE LAST TIME THIS HAD HAPPENED SAUDI ARABIA AND IRAN ARE OPEC'S LARGEST PRODUCERS ACCOUNTING FOR NEARLY HALF OF THE GROUP'S OUTPUT THEY ARE ALSO RIVALS WITHIN OPEC OFTEN HOLDING CONFLICTING VIEWS THEIR MINISTERS HAVE BEEN SHARPLY CRITICAL OF EACH OTHER BUT IN RECENT MEETINGS HAVE AVOIDED FACETOFACE CONFRONTATIONS SEVERAL MINISTERS HAD CAUTIONED THAT A CREDIBLE PRODUCTION AGREEMENT ISN'T POSSIBLE WITHOUT THE SUPPORT OF BOTH THE IRANIAN AND SAUDI OIL MINISTERS BUT WHATEVER HAPPENED AT BREAKFAST AND NEITHER MINISTER WOULD SAY MR NAZER TOOK THE INITIATIVE AT YESTERDAY MORNING'S SESSION HE PROPOSED A WAY TO RESOLVE OPEC'S PROBLEMS SET THE CEILING AT A MAXIMUM LEVEL OF 245 MILLION BARRELS A DAY THEN DIVIDE THAT AMONG THE 12 MEMBERS ONCE AGREED ASK ALL TO VOLUNTARILY FORGO SOME OF THE QUOTA INCREASE THAT WOULD RESULT BECAUSE THE NEW CEILING WOULD BE ABOUT 900000 BARRELS A DAY HIGHER THAN THE CURRENT WIDELY IGNORED LIMIT OF 236 MILLION BARRELS A DAY THE LOWER THE CEILING THE HIGHER THE PRICES MR NAZER SUGGESTED WHAT'S MORE THOSE WHO VOLUNTARILY GIVE UP SOME OF THEIR ALLOWED BARRELS WOULD BE FIRST IN LINE WHEN DEMAND FOR OPEC OIL PERMITTED ANOTHER RISE IN THE CEILING THE OTHERS AGREED TO THIS COURSE IN ANY CASE THERE ISN'T LIKELY TO BE A PROBLEM FOR SEVERAL COUNTRIES WHOSE NEW QUOTAS WILL REMAIN AROUND CURRENT LEVELS OF OUTPUT SAUDI ARABIA FOR EXAMPLE MAY FREEZE ITS OUTPUT AT THE CURRENT LEVEL OF EIGHT MILLION BARRELS A DAY HOWEVER THE TWO CRITICAL QUOTAS ARE THOSE FOR KUWAIT AND IRAN KUWAIT WHICH HAS BEEN OUTSIDE THE QUOTA SYSTEM IS WILLING TO REJOIN ONLY IF ITS QUOTA IS NEAR ITS CURRENT PRODUCTION OF TWO MILLION BARRELS A DAY AND IRAN OFTEN ACCUSED OF PRODUCING MORE THAN ITS QUOTA HAS BEEN DEMANDING A MUCH HIGHER ALLOTMENT THAN ITS 33 MILLION BARRELS A DAY IF OTHERS SUCH AS KUWAIT GET INCREASES BUT AFTER YESTERDAY'S DEVELOPMENTS IRAN MAY SHOW FLEXIBILITY 9309280074 930928 TELECOMMUNICATIONS VOICE MAIL MAY LET COMPETITORS DIAL E' FOR ESPIONAGE BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON WHEN JOSEPH CORTESE CALLED STANDARD DUPLICATING MACHINES INC LAST MONTH TO ASK ABOUT BUYING A 100000 COLLATING MACHINE HE REACHED THE VOICEMAIL SYSTEM SO HE LEFT A MESSAGE FIRST THING NEXT MORNING MR CORTESE WHO BUYS EQUIPMENT FOR THE NEW ENGLAND JOURNAL OF MEDICINE RECEIVED A CALL FROM A SALESMAN OFFERING ATTRACTIVE TERMS ON COLLATING EQUIPMENT ODDLY ENOUGH THE SALESMAN WORKED FOR STANDARD'S CHIEF COMPETITOR STANDARD A FAMILYOWNED ANDOVER MASS DISTRIBUTOR OF COLLATORS AND OTHER PRINTING INDUSTRY EQUIPMENT HAS CHARGED IN A LAWSUIT THAT THE CALL WAS NO COINCIDENCE IT SAYS THAT ITS RIVAL THE US UNIT OF JAPAN'S DUPLO MANUFACTURING CORP ENGAGED IN A PROLONGED AND SURREPTITIOUS CAMPAIGN OF BUSINESS ESPIONAGE BY STEALING VOICEMAIL MESSAGES TO STEAL BUSINESS DUPLO OFFICIALS DIDN'T RETURN CALLS TO THE US UNIT'S HEADQUARTERS IN SANTA ANA CALIF THE US UNIT HASN'T RESPONDED YET IN COURT TO THE SUIT WHICH WAS FILED LAST WEEK THE CASE IN FEDERAL COURT IN BOSTON IS THE LATEST EXAMPLE OF GROWING PROBLEMS WITH VOICEMAIL SECURITY COMPANIES LIKE SPINNAKER SOFTWARE AND INTERNATIONAL DATA GROUP A MAGAZINE PUBLISHER HAVE FOUND THEIR PHONE SYSTEMS SHUT DOWN BY VOICEMAIL VANDALS WHO CLOGGED THE SYSTEMS SO NOTHING MORE COULD FIT HACKERS SOMETIMES OCCUPY A VACANT CORPORATE VOICEMAILBOX AND USE IT TO POST MESSAGES TO OTHER HACKERS IN SOME CASES PHONE THIEVES HAVE EVEN MANAGED TO GO FROM VOICEMAIL BOXES INTO OUTBOUND CALLING RACKING UP THOUSANDS OF DOLLARS IN INTERNATIONAL CALLS VOICEMAIL SPYING HASN'T RECEIVED MUCH PUBLICITY BEFORE BUT SECURITY EXPERTS SAY THE STANDARDDUPLO CASE IS A REMINDER OF THE RISKS COMPANIES RUN BY LEAVING IMPORTANT MESSAGES ON VOICE MAIL PEOPLE DON'T REALIZE THAT THEIR VOICEMAIL SYSTEM STORES LOTS OF VALUABLE INFORMATION AND COMPUTERS ARE AT RISK SAYS FRED COTTON A MANAGER AT SEARCH A SACRAMENTO CALIF ORGANIZATION THAT TRAINS STATE INVESTIGATORS TO CHASE HIGHTECH CRIMINALS IN ITS SUIT STANDARD IS SEEKING UNSPECIFIED DAMAGES UNDER TRADESECRET LAWS AND THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS STATUTES STANDARD EXPLAINS HOW IT RAN A STING OPERATION BY ASKING LOYAL CUSTOMERS SUCH AS THE NEW ENGLAND JOURNAL TO PLACE BOGUS ORDERS IN VOICEMAIL BOXES ONLY TO FIND DUPLO SALESPEOPLE CALLING THE CUSTOMERS A DAY OR TWO LATER IT SAYS IT LOST NUMEROUS SALES OF 100000 COLLATING UNITS AS A RESULT OF THE ESPIONAGE STANDARD'S ATTORNEY THANE SCOTT OF PALMER & DODGE IN BOSTON SAYS STANDARD BEGAN TO SUSPECT FOUL PLAY WHEN IT BEGAN TO LOSE SALES IN INEXPLICABLE WAYS STANDARD HAD LONG SOLD DUPLO COLLATORS AS A DISTRIBUTOR BUT LAST YEAR DUPLO SET UP ITS OWN DIRECT SALES OPERATION MR SCOTT SAID THE SUIT SAYS THAT ON AUG 30 A SUPPLIER CALLED STANDARD'S PRESIDENT L GUY RENY AND TOLD HIM A COMPETITOR HE WOULDN'T IDENTIFY WAS STEALING BUSINESS LEADS FROM THE VOICEMAIL SYSTEM IN THE NEXT TWO WEEKS ACCORDING TO THE SUIT STANDARD ARRANGED FOR SIX CALLERS INCLUDING THE NEW ENGLAND JOURNAL TO LEAVE VOICEMAIL MESSAGES SOME CALLERS USED UNLISTED PHONE NUMBERS OR GAVE FAKE NAMES BUT THEY STILL GOT CALLS FROM DUPLO SALESPEOPLE AND DEALERS THE LAWSUIT ZEROES IN ON JOHN HEBEL WHO STANDARD SAID IT HAD TERMINATED AS A SALES MANAGER IN SEER 1992 LAST NOVEMBER DUPLO HIRED MR HEBEL AS ITS MIDWEST SALES MANAGER STANDARD SAYS MR HEBEL WAS FAMILIAR WITH STANDARD'S VOICEMAIL SYSTEM WHICH IS MADE BY AMERICAN TELEPHONE & TELEGRAPH CO AND THAT HE KNEW SOME OF THE PASSWORDS STANDARD SAYS THAT IT PINPOINTED MR HEBEL BY EXAMINING CALLS TO ITS TOLLFREE 800 NUMBER A NUMBER OF CALLS ALL AFTER STANDARD'S 430 PM CLOSING TIME WERE FROM DUPLO AND MR HEBEL'S HOME MR HEBEL WHO WAS AMONG THE DUPLO SALESPEOPLE NAMED IN THE SUIT DIDN'T RETURN PHONE CALLS KEVIN HANLEY A TELECOMMUNICATIONS SECURITY EXPERT AT AT&T SAYS THAT ONE KEY TO ELIMINATING VOICEMAIL ESPIONAGE IS FOR COMPANIES TO FORCE EMPLOYEES TO CHANGE PASSWORDS REGULARLY HE SAYS HE RECOMMENDS CHANGING PASSWORDS AFTER EVERY TRIP WHERE ACCESS CODES MIGHT HAVE BEEN VIEWED BY SHOULDERSURFERS LOOKING FOR CALLINGCARD NUMBERS AT PAY PHONES AND AT LEAST ONCE A QUARTER PEOPLE LOCK THEIR FILE CABINETS AT NIGHT YOU HAVE TO TREAT INFORMATION IN A VOICEPROCESSING SYSTEM AS SECURELY AS YOU WOULD IF IT WERE ON A PIECE OF PAPER HE SAYS 9309280073 930928 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC MOTEL FRANCHISER TO BEGIN GAMBLING CASINO OPERATIONS HOSPITALITY FRANCHISE SYSTEMS INC OWNER OF RIGHTS TO MOTEL CHAINS INCLUDING DAYS INN AND HOWARD JOHNSON SAID IT WILL FRANCHISE CASINOS AND GAMBLING OPERATIONS THE ANNOUNCEMENT SENT THE PARSIPPANY NJ COMPANY'S STOCK UP 10 OR 4 TO CLOSE AT 43375 A SHARE IN NEW YORK STOCK EXCHANGE TRADING HOSPITALITY SAID IT AGREED WITH CLOSELY HELD RAINBOW CASINO CORP OF VICKSBURG MISS TO FRANCHISE A SITE IN THAT CITY AS A DAYS INN CASINO IN RETURN FOR A LICENSE FEE OF 12 OF CASINO REVENUE SEPARATELY THE COMPANY SAID IT ACQUIRED A 25 STAKE IN CLOSELY HELD ODYSSEY GAMING CORP SCOTTSDALE ARIZ WHICH SPECIALIZES IN MANAGING GAMBLING OPERATIONS ON INDIAN LANDS WITH ODYSSEY HOSPITALITY SAID IT AGREED WITH THE WAMPANOAG TRIBE OF GAY HEAD MASS TO NEGOTIATE CREATING A GAMBLING ESTABLISHMENT 9309280072 930928 CREDIT RATINGS PROVINCE OF ONTARIO ONTARIO HYDRO DEBT PUT ON CREDITWATCH TORONTO STANDARD & POOR'S CORP PUT THE LONGTERM DEBT OF THE PROVINCE OF ONTARIO AND ONTARIO HYDRO ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS THE RATING AGENCY SAID THE MOVE AFFECTING 33 BILLION US OF DEBT REFLECTS UNCERTAINTY REGARDING THE PROVINCE'S COMMITMENT TO MEETING THE DEFICIT REDUCTION PLAN OUTLINED IN ITS MAY 1993 BUDGET FLOYD LAUGHREN ONTARIO'S FINANCE MINISTER SAID LAST WEEK THAT THE PROVINCE'S REVENUE IS FALLING SHORT OF BUDGETED EXPECTATIONS DUE TO A WEAK ECONOMY THE PROVINCE IS NOW TRACKING A DEFICIT OF 95 BILLION CANADIAN DOLLARS US72 BILLION COMPARED WITH THE C92 BILLION PROJECTED IN MAY HE SAID THE PROVINCE'S FISCAL YEAR ENDS MARCH 31 SIMON ROSENBLUM MR LAUGHREN'S CHIEF OF STAFF SAID HE CAN'T SAY THAT'S THE END OF THE REVENUE SLIPPAGE BUT THAT LOWER REVENUE WILL BE PARTLY OFFSET BY NEWLY PLANNED SAVINGS FOR EXAMPLE A FREEZE ON MINISTRIES' SPENDING SHOULD SAVE C200 MILLION THIS FISCAL YEAR HE SAID S&P'S CURRENT RATING ON ONTARIO AND ONTARIO HYDRO DEBT IS DOUBLEA AN S&P OFFICIAL SAID THE RATING WILL BE EITHER CHANGED OR AFFIRMED BY EARLY NOVEMBER ONTARIO HYDRO IS OWNED BY THE PROVINCE OF ONTARIO 9309280071 930928 YOUR MONEY MATTERS TAX AFTERMATH OF A DISASTER IS A COMPLICATED ORDEAL BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL TOM GARLEB LOST NEARLY EVERYTHING IN AUGUST WHEN THE MISSISSIPPI RIVER BROKE THROUGH A LEVEE AND ROARED ACROSS HIS SOUTHERN ILLINOIS FARM SWEPT AWAY WERE HIS FARMHOUSE BARN OUTBUILDINGS AND SHEDS AND A GARAGE HE WAS ABLE TO SAVE 250 HOGS AND SOME FARM EQUIPMENT BUT HE HAD ONLY PARTIAL INSURANCE COVERAGE ON HIS HOUSE AND NOTHING ON HIS OTHER PROPERTY WITH HIS LAND STILL UNDER EIGHT FEET OF WATER AND TWO FEET OF SAND HE DOUBTS HE WILL EVER BE ABLE TO REBUILD DESPITE THE DISASTER THE 33YEAROLD FARMER SAYS HIS ACCOUNTANT FIGURES HE MAY END UP OWING THE FEDERAL GOVERNMENT 6000 IN TAXES THE REASON SINCE HE NO LONGER HAS A FARM HE SAYS HE WILL HAVE TO SELL THE HOGS AND FARM EQUIPMENT CHALKING UP BIG INCOME THIS YEAR EVEN HIS LOSSES ON BUILDINGS WON'T COVER GAINS FROM HOG AND EQUIPMENT SALES HE SAYS DISASTER VICTIMS REELING FROM MISSISSIPPI RIVER FLOODS HURRICANES IN FLORIDA AND EARTHQUAKES IN CALIFORNIA ARE DISCOVERING THAT DEALING WITH THE TAX CONSEQUENCES OF A DISASTER IS A COMPLICATED OFTEN FRUSTRATING PROCESS BESIDES RECOVERING FINANCIALLY AND EMOTIONALLY FROM THEIR DISASTER THEY MUST UNRAVEL COMPLEX TAXCODE PROVISIONS AND EVEN THOUGH THEIR RECORDS MAY HAVE BEEN DESTROYED THEY MUST DOCUMENT THEIR LOSSES IN A WAY THAT WILL STAND UP TO TOUGH INTERNAL REVENUE SERVICE SCRUTINY MANY DISASTER VICTIMS FEEL LIKE GIVING UP ESSENTIALLY WE'RE WIPED OUT SAYS MR GARLEB WHO NOW LIVES WITH HIS WIFE AND CHILDREN IN A TRAILER IN COLUMBIA ILL MR GARLEB'S PROBLEMS AREN'T UNUSUAL FOR FARMERS IN THE FLOOD AREA SAYS RICHARD C WALDEN A CARLINVILLE ILL ACCOUNTANT WHO SPECIALIZES IN FARM CLIENTS MOST PEOPLE DON'T REALIZE THAT IT'S POSSIBLE TO HAVE A TAXABLE GAIN AFTER A DISASTER HE SAYS THE TAX LAW WOULD ALLOW MR GARLEB TO DEFER ANY GAINS FROM THE SALE OF HIS BREEDING HOGS THIS YEAR BUT TO QUALIFY FOR THE DEFERRAL HE WOULD HAVE TO REINVEST THE PROCEEDS IN SIMILAR BREEDING HOGS WITHIN TWO YEARS ACCOUNTANTS SAY MR GARLEB SAYS HE'S HAVING A HARD TIME FINDING A SIMILAR HOG FARM IN THE COUNTY TO BUY NEIL E HARL AN IOWA STATE UNIVERSITY PROFESSOR AND FARM TAX EXPERT SAYS THAT IN SOME CASES ANOTHER RELIEF PROVISION PERMITS A ONEYEAR DEFERRAL FROM THE SALE OF ANIMALS BEYOND THE NUMBER NORMALLY SOLD BUT UNFORTUNATELY HE SAYS THAT PROVISION IS ONLY AVAILABLE FOR DROUGHT SALES NOT SALES BECAUSE OF FLOOD VICTIMS OF OTHER TYPES OF DISASTER DON'T HAVE IT EASY EITHER THE TAX LAW DOESN'T GIVE UNINSURED DISASTER VICTIMS MUCH BENEFIT ACCORDING TO ANNA MARIA GALDIERI AN OAKLAND CALIF ACCOUNTANT WHOSE CLIENTS INCLUDE VICTIMS OF THE 1991 OAKLAND FIRE IF YOUR LOSS ISN'T HUGE YOU MAY HAVE TROUBLE EVEN GETTING OVER FEDERAL THRESHOLDS FOR PERSONALINCOME TAX FILERS UNINSURED CASUALTY LOSSES ARE DEDUCTIBLE ONLY TO THE EXTENT THAT THEY EXCEED 10 OF YOUR ADJUSTED GROSS INCOME THE FIRST 100 OF LOSS FOR EACH DISASTER ISN'T DEDUCTIBLE ONE OTHER POINT YOUR CASUALTY LOSS CAN NEVER BE GREATER THAN YOUR ADJUSTED BASIS OR YOUR INVESTMENT IN THE PROPERTY DOCUMENTING A CASUALTY LOSS CAN BE DIFFICULT JOE MARCHBEIN TAX MANAGER AT ST LOUIS ACCOUNTANTS RUBIN BROWN GORNSTEIN & CO SUGGESTS THAT PEOPLE CHECK FOR SALES OF COMPARABLE HOUSES IN THEIR NEIGHBORHOODS TO ESTABLISH THE VALUE BEFORE THE DISASTER AS SOON AS POSSIBLE AFTER THE DISASTER IT'S IMPORTANT TO GET AN APPRAISAL FROM A QUALIFIED APPRAISER WHOSE CREDENTIALS ARE ESTABLISHED AND WHO HAS YEARS OF EXPERIENCE SAYS KEN STRAUSS A PARTNER IN MIAMI ACCOUNTANTS WAINBERG ZIPPER & CO IT'S ALSO A GOOD IDEA TO TAKE PHOTOS OF THE DAMAGE BEFORE YOU CLEAN UP UNLESS YOU HAVE METICULOUS RECORDS IT'S HARD TO COLLECT MUCH MORE THAN THRIFT STORE VALUE FOR REPLACEMENT OF PERSONAL PROPERTY LOST IN A DISASTER SAYS MS GALDIERI THE OAKLAND ACCOUNTANT IF YOU HAVE TROUBLE REMEMBERING WHAT YOU LOST IRS PUBLICATION 584 MAY HELP THE FREEWORKBOOK AVAILABLE BY CALLING 8008293676 WALKS TAXPAYERS THROUGH A LIST OF ITEMS ONE TYPICALLY LOSES IN A DISASTER THE BEST WAY TO AVOID THIS PROBLEM IS TO USE A VIDEO CAMERA TO RECORD THE OUTSIDE AND INSIDE OF YOUR HOME SAYS WAYNE HARVEY A PARTNER IN THE WHITTIER CALIF ACCOUNTING FIRM OF HARVEY & PARMLEE DESCRIBE THE HOME'S CONSTRUCTION AND CONTENTS AS YOU WALK INCLUDING ANTIQUES JEWELRY AND FURNITURE THEN STASH THE VIDEOTAPE IN A SAFEDEPOSIT BOX AWAY FROM YOUR HOME ALONG WITH ORIGINAL RECEIPTS CANCELED CHECKS OR CREDITCARD CHARGES APPRAISAL RECORDS FOR THESE ITEMS AND OTHER EXPENSIVE APPLIANCES VICTIMS WHO LIVE IN FEDERAL DISASTER AREAS DON'T HAVE TO WAIT UNTIL NEXT YEAR TO CLAIM CASUALTY LOSSES THEY CAN CLAIM THEM NOW BY FILING AN AMENDED VERSION OF THE 1992 TAX RETURN BUT SOME TAXPAYERS MAY FIND THAT THEY GET MORE TAX SAVINGS BY WAITING AND CLAIMING THE LOSSES ON THEIR 1993 RETURNS THE NEW TAX LAW SIGNED LAST MONTH BY PRESIDENT CLINTON OFFERS INSURED VICTIMS OF DISASTERS SOME RELIEF BUT THE LAW DOESN'T GIVE ANY HELP TO UNINSURED VICTIMS THE NEW LAW EXTENDS TO FOUR YEARS FROM TWO THE TIME ALLOWED TO USE INSURANCE PROCEEDS FROM THE PRINCIPAL RESIDENCE TO REBUILD OR REPLACE PROPERTY LOST OR DAMAGED IN A DISASTER THE NEW LAW ALSO EXEMPTS FROM TAX ANY INSURANCE PROCEEDS RECEIVED FOR UNSCHEDULED PERSONAL PROPERTY THAT WAS PART OF THE CONTENTS OF THE RESIDENCE UNSCHEDULED PROPERTY MEANS ITEMS NOT LISTED INDIVIDUALLY ON AN INSURANCE POLICY AND IT TREATS PROCEEDS RECEIVED FROM REAL PROPERTY AND SCHEDULED PERSONAL PROPERTY AS A COMMON FUND THAT CAN BE USED TO REPLACE OR REFURBISH A NEW HOME FOLLOWING THESE FIVE STEPS CAN HELP DISASTER VICTIMS CLAIM CASUALTY LOSSES ON THEIR TAX RETURNS AND SPEED THEIR FINANCIAL RECOVERY DETERMINE FAIR MARKET VALUE OF PROPERTY IMMEDIATELY BEFORE DISASTER BY CHECKING RECENT SALES OF COMPARABLE HOMES IN YOUR NEIGHBORHOOD GET AN EXPERIENCED APPRAISER TO APPRAISE THE FAIR MARKET VALUE OF YOUR PROPERTY AFTER THE DISASTER TAKE PHOTOGRAPHS TO SHOW CONDITION OF PROPERTY AFTER THE DISASTER AND AFTER YOU REPAIRED OR RESTORED IT GATHER RECEIPTS CHECKS CREDITCARD CHARGES PHOTOGRAPHS AND OTHER PROOF OF DAMAGED OR LOST PERSONAL PROPERTY IF RECORDS ARE LOST GET FREE IRS PUBLICATION 584 WHICH LISTS TYPICAL HOME CONTENTS FIGURE YOUR TAX DEDUCTION BY SUBTRACTING ANY INSURANCE PROCEEDS 10 OF YOUR ADJUSTED GROSS INCOME AND 100 FROM YOUR LOSS CONSULT WITH TAX PROFESSIONAL TO FIGURE OUT WHICH YEAR WILL BE MOST ADVANTAGEOUS TO CLAIM LOSS 9309280070 930928 INTERNATIONAL ZORKIN BATTLES ONCE AGAIN WITH YELTSIN CHAIRMAN OF RUSSIAN COURT SEEKS TO GATHER SUPPORT FOR PLAN TO STEM CRISIS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW VALERI ZORKIN KNOWS THE RISKS OF OPPOSING RUSSIAN PRESIDENT BORIS YELTSIN THE CHAIRMAN OF RUSSIA'S CONSTITUTIONAL COURT SITS IN HIS OFFICE TELEPHONING REGIONAL LEADERS TRYING TO WIN SUPPORT FOR A COMPROMISE TO RESOLVE RUSSIA'S POLITICAL CRISIS SUDDENLY THE PHONE LINES FALL DEAD MR ZORKIN HAS NO DOUBT THAT MR YELTSIN'S PEOPLE WHO OPPOSE THE COMPROMISE HAVE CUT THE LINES IF SO IT ISN'T THE FIRST TIME MR YELTSIN HAS TRIED TO HUMILIATE MR ZORKIN AS HE DOES WITH MANY OF HIS POLITICAL FOES MR YELTSIN TOOK AWAY SOME OF THE COURT CHAIRMAN'S PERKS HIS DACHA AND PART OF HIS SECURITY DETAIL AS AN INDIVIDUAL I'M IMMUNE TO ALL OF THIS MR ZORKIN SAID IN AN INTERVIEW BUT I'M CONCERNED ABOUT THE SIGNS OF DESPOTIC BEHAVIOR THE 50YEAROLD COURT CHAIRMAN ROUGHLY THE EQUIVALENT OF THE US SUPREME COURT'S CHIEF JUSTICE HAS BEEN A LIGHTNING ROD FOR CONTROVERSY SINCE HIS APPOINTMENT IN 1991 ONCE AN ALLY OF MR YELTSIN HE AND THE COURT HE DOMINATES HAVE SIDED AGAINST THE PRESIDENT IN MANY KEY CONSTITUTIONAL BATTLES IN THE PAST 18 MONTHS WHILE MR ZORKIN MAINTAINS THAT HE IS AN INDEPENDENT DEFENDER OF THE CONSTITUTION CRITICS ACCUSE HIM OF ACTIVELY PLAYING POLITICS AND LUMP HIM IN THE ANTIYELTSIN CAMP ALONG WITH THE MERCURIAL PARLIAMENT CHAIRMAN RUSLAN KHASBULATOV IT WAS MR ZORKIN WHO ARTICULATED THE COMPROMISE PLAN THAT MANY RUSSIANS HOPE WILL LEAD TO A WAY OUT OF THE POLITICAL STALEMATE BETWEEN MR YELTSIN AND THE PARLIAMENT HE ORDERED TO DISBAND A VERSION OF THE PROPOSAL WAS BACKED BY REGIONAL LEADERS MEETING IN ST PETERSBURG SUNDAY AND HAS BEEN ENDORSED BY CENTRIST POLITICAL FIGURES AND ORGANIZATIONS THE PLAN CALLS FOR SIMULTANEOUS ELECTIONS FOR PRESIDENT AND A NEW PARLIAMENT IT ALSO WOULD PRETEND THAT THE PAST WEEK'S INCREDIBLE EVENTS IN MOSCOW SIMPLY DIDN'T HAPPEN MR YELTSIN WOULD RESCIND HIS DECREE DISSOLVING PARLIAMENT WHILE THE LEGISLATURE WOULD ERASE ITS RESOLUTIONS STRIPPING MR YELTSIN OF HIS POWERS IF EVERYTHING IS SUSPENDED THEN THE CONSTITUTION IS BEING RESTORED AT LEAST IN RELATIVE TERMS SAYS MR ZORKIN A FORMER LAW PROFESSOR FOR NOW HOWEVER MR YELTSIN IS REFUSING TO YIELD AN INCH I NO LONGER AGREE TO ANY COMPROMISE WITH ANY BODY OF POWER MR YELTSIN SAID IN A TELEVISED ADDRESS MONDAY AN AIDE TO MR YELTSIN SUGGESTED THAT THE PRESIDENT WASN'T BLUFFING YELTSIN WON'T TAKE ANY MORE STEPS CLOSER TO PARLIAMENT SAID THE AIDE HE'S ALREADY TAKEN SO MANY AND THEY'VE CHEATED EVERY TIME MR YELTSIN WANTS ELECTIONS FOR A NEW PARLIAMENT TO BE HELD IN DECEMBER WITH PRESIDENTIAL ELECTIONS SIX MONTHS LATER MR YELTSIN IS SHUNNING SIMULTANEOUS ELECTIONS PERHAPS BECAUSE HE FEARS THAT THE PUBLIC WEARY AFTER 18 MONTHS OF POLITICAL STRUGGLE WILL WANT TO THROW THE BUMS OUT AND DUMP BOTH MR YELTSIN AND HIS FOES IN PARLIAMENT MR YELTSIN'S EARLIER CLASHES WITH THE CONSTITUTIONAL COURT SEEMED MURKY THIS ONE SEEMS CLEAR MR YELTSIN VIOLATED THE CONSTITUTION LAST TUESDAY WHEN HE SUDDENLY ANNOUNCED THAT PARLIAMENT WAS DISSOLVED AND THAT HE WOULD ASSUME ALL LAWMAKING POWER UNTIL A NEW LEGISLATURE COULD BE ELECTED MR YELTSIN'S DEFENSE IS THAT HE HAD TO TAKE EXTRAORDINARY MEASURES BECAUSE THE PARLIAMENT IS A RELIC OF THE SOVIET ERA WHOSE CONSERVATIVE MEMBERS CAN'T CLAIM TO REPRESENT POSTSOVIET RUSSIAN PEOPLE PARLIAMENT HAS FREQUENTLY BLOCKED MR YELTSIN'S ATTEMPTS TO PUSH FREEMARKET ECONOMIC REFORMS BUT THE MOVE RAISED A QUESTION EVEN AMONG MR YELTSIN'S SUPPORTERS IS IT ACCEPTABLE TO ADOPT SUCH A BLATANTLY UNCONSTITUTIONAL MOVE EVEN IF IT IS AIMED AT SAFEGUARDING RUSSIA'S DEMOCRATIC DEVELOPMENT MR ZORKIN COMPARES MR YELTSIN WITH AN EARLIER EUROPEAN LEADER WHO USED HIS POPULAR MANDATE TO VIOLATE A CONSTITUTION HE DIDN'T LIKE ADOLF HITLER HITLER BEGAN AS A DEMOCRAT MR ZORKIN SAYS HE WENT TO THE PEOPLE AND EXPLAINED THAT HE WAS VIOLATING AN UNCONSTITUTIONAL CONSTITUTION IN THE INTERESTS OF FAIRNESS WE ALL KNOW WHAT THAT BROUGHT MR ZORKIN HAS MET WITH REPRESENTATIVES OF VARIOUS SIDES IN THE POLITICAL STRUGGLE TO TRY TO RESOLVE THE CRISIS BUT MR KHASBULATOV LIKE MR YELTSIN STILL SAYS HE ISN'T READY TO ACCEPT ANY COMPROMISE BUT PRESSURE IS COMING FROM THE REGIONS WHOSE LEADERS APPEAR TO HOLD THE KEY TO RESOLVING THE DEADLOCK MORE AND MORE ARE EXPRESSING THEIR SUPPORT FOR SOME FORM OF MR ZORKIN'S PLAN MIKHAIL GORBACHEV HIMSELF HUMILIATED AT THE HANDS OF MR YELTSIN PAID A CALL TO THE COURT CHAIRMAN MONDAY EMERGING FROM MR ZORKIN'S CHAMBERS HE ADDED HIS NAME TO THE LIST OF PROMINENT POLITICAL FIGURES BACKING THE COMPROMISE I THINK ULTIMATELY THAT THIS OPTION WILL WORK SAID THE FORMER PRESIDENT WHO RUNS A THINK TANK IN MOSCOW THE FEDERAL STRUCTURES IN RUSSIA HAVE EXHAUSTED THEMSELVES WE NEED NEW ELECTIONS MR GORBACHEV HAD SURPRISINGLY HARSH CRITICISM FOR LEADERS IN THE WEST WHO HAVE NEARLY UNANIMOUSLY BACKED HIS OLD NEMESIS MR YELTSIN IN THE POWER STRUGGLE I ADVISE THEM TO KEEP OUT OF RUSSIA'S INTERNAL AFFAIRS MR GORBACHEV SAID THEY SHOULDN'T BE STOMPING THEIR BOOTS ON OUR SOUL 9309280069 930928 BUSINESS WORLD SHOWTIME IS ANYTIME IN THIS PHONE COMPANY'S BOOK BY TIM W FERGUSON THE DECORATIVE CLOCKS IN JEFFREY SUDIKOFF'S OFFICE AT IDB COMMUNICATIONS GROUP ARE SET WRONG IT'S ONE WAY THE FOUNDER AND CHAIRMAN/CEO OF THIS RISING GLOBAL LONGDISTANCE CARRIER NO 4 BEHIND AT&T MCI AND SPRINT SENDS A MESSAGE ABOUT TELECOM'S FUTURE REAL TIME WILL BE LESS IMPORTANT THIS IS PARADOXICAL TELECOMMUNICATIONS TECHNOLOGY IS BRINGING US EVER CLOSER TO UNIVERSAL IMMEDIACY INDEED IDB ITSELF SPRUNG UP TO CONNECT RADIO STATIONS AROUND THE COUNTRY WITH LIVE ROCKMUSIC EVENTS AND LATER TO DO THAT BIGTIME FOR SPORTS BROADCASTS BUT NOW AS THE CULVER CITY CALIF COMPANY HEADS TOWARD WHAT MR SUDIKOFF SAYS WILL BE 420 MILLION IN REVENUE NEXT YEAR ITS BEST HOPE ULTIMATELY TO LEAP FROG MCI AND SPRINT IS TO PURSUE THE BUSINESS KNOWN AS STORE AND FORWARD THAT IS IT WILL COLLECT DIGITIZED PROGRAMMING FROM VARIOUS OFTEN PROPRIETARY SOURCES AND MAKE IT AVAILABLE ON COMMAND WHENEVER A PHONE CUSTOMER WANTS IT IT'S JUST ONE PART OF THE MULTIMEDIA WAVE THAT'S INSPIRING MEGADEAL CORPORATE COMBINATIONS HARDWARE IS LINING UP WITH SOFTWARE TO THE SWIFTEST GO THE SPOILS ALTHOUGH THE HARDWARE TO CARRY IMAGES OR SOUNDS FROM POINT TO POINT WILL REMAIN IMPORTANT IDB HAS BEEN ACQUIRING COMPANIES THAT SECURE ITS FIBEROPTIC LINKS ABROAD AND HAS A GARDEN OF SATELLITE DISHES ALONGSIDE ITS HEADQUARTERS OBTAINING THE SOFTWARE BY WHICH TO DIFFERENTIATE SERVICE IS WHAT PREOCCUPIES MR SUDIKOFF NOW FOR AS HE NOTES YOU CAN HEAR A PIN DROP REGARDLESS OF YOUR CARRIER THE QUALITY ISSUE HAS GONE AWAY HE SAYS IT'S ALL THE SAME PIPELINES NOW AND REALLY ITS BECOME A COMMODITY THE TELEPHONE BUSINESS IN TERMS OF PRICE I MEAN PEOPLE DON'T CARE WHO THEIR TELEPHONE COMPANIES ARE HE TALKS ABOUT HIS FATHER'S BOUNCING BETWEEN AT&T AND MCI AS MANY HAVE IN ORDER TO SEIZE THE LATEST GIVEAWAY DESPITE ALL THE EXPENSIVE ADVERTISING THERE'S AN INDIFFERENCE AS TO CARRIERS MY DAD WOULD BE MORE LIKELY TO BUY LL BEAN LONG DISTANCE BECAUSE OF THE BOOTS YOU CAN GET AS A PREMIUM WHILE IT'S A RIDICULOUS EXAMPLE THE POINT IS THERE ARE OTHER RETAILING IDENTITIES AND MARKETING IDENTITIES THAT CONSUMERS CARE A LOT MORE ABOUT THAT'S WHERE THE CABLE COMPANIES' ADVANTAGE IS THEY'RE THE NEXT LEVEL OF PEOPLE WE LOVE TO HATE BUT THEY HAVE SOME OF THE THINGS WE LIKE I'D BE MORE INCLINED TO CHOOSE A CARRIER FOR LONG DISTANCE IF THE FIRST TIER OF CABLE IS HALF PRICE IF I DID THAT THAT'S THE DIRECTION IDB IS GOING ALLIANCES WITH THINGS PEOPLE CARE MORE ABOUT OTHERWISE WE'RE JUST ALPHABET SOUP THE REMINDERS OF SOFTWARE'S SALABILITY ARE ALL AROUND THIS ENTERTAINMENT HOTBED ACROSS THE STREET FROM IDB'S METASTISIZING OFFICES LIES SONYCOLUMBIA PICTURES MOVIES ARE THE MOST OFTEN MENTIONED EXAMPLE OF TELECOM'S TOMORROW THE ABILITY TO CALL UP A FILM WHENEVER YOU WANT IT BY PUSHING A FEW BUTTONS INSTEAD OF HIKING TO THE VIDEO STORE THAT SERVICE ALREADY IS APPEARING BUT THE CONCEPT IS APPLICABLE TO ANYTHING WITH A POTENTIAL AUDIENCE MR SUDIKOFF CITES A HYPOTHETICAL EXAMPLE A JAPANESE COMPANY WITH A HOTEL INTEREST IN MIAMI MIGHT WISH TO HAVE THE PROGRAMMING ON A TV STATION THERE STORED FOR CALLUP IN TOKYO SUCH A SPECIALIZED SERVICE MIGHT BE EXPENSIVE FOR A HOMESICK INDIVIDUAL BUT OVER THE RANGE OF POTENTIAL EAVESDROPPERS IN A CORPORATION EACH OF WHOM COULD SUMMON THE IMAGES ON A DESKTOP MONITOR THIS WINDOW ON A BIG CONSUMER MARKET BECOMES CHEAP MORE PROSAICALLY TAKE SPORTS FOR THE COMING PRO HOCKEY SEASON HE SAYS IDB HAS PERMISSION TO STORE AUDIO TECHNOLOGY WILL MAKE HEARING THE PLAYBYPLAY FOR YOUR FAVORITE TEAM ONLY AN 800 OR 900 NUMBER AWAY AT A TIME OF YOUR CHOICE ANOTHER EXAMPLE SAY YOU GET HOME AT 830 AND MISS THE FIRST PERIOD OF A GAME BEING BROADCAST LOCALLY YOU COULD HAVE TAPED IT ON YOUR VCR BUT YOU PROBABLY DIDN'T BOTHER OR KNOW HOW AND BESIDES YOU WANT TO WATCH THE EVENT FROM SCRATCH BEGINNING NOW YOU'LL BE ABLE TO DIAL UP THE ACTION FROM THE OPENING PLAY FOR PERHAPS 250 WILL YOU PAY THAT FOR THE CONVENIENCE ABSOLUTELY YOU'LL PAY MORE THAN THAT SAYS MR SUDIKOFF THE KEY IS TO THINK OF YOUR TELEVISION OR VIDEO MONITOR AS IT WILL BE KNOWN AS THE MEDIUM FOR A NEW KIND OF DATA BASE IT WILL ALSO DISPLAY THE OLD KINDTEXT IN A MORE USERFRIENDLY WAY BUT THAT'S ANOTHER STORY THIS NEW DATA BASE WILL BE THE VAST ARRAY OF PROGRAMMING TO WHICH YOUR CARRIER HAS OBTAINED RIGHTS IT IS PAY PER VIEW WITHOUT A SET SCHEDULE YOU WON'T USE THE PROVERBIAL 500 CHANNELS COME TOMORROW THE CABLE COMPANIES ARE NOT PRESENTING IT RIGHT SAYS MR SUDIKOFF AND THAT INTIMIDATES PEOPLE YOU WILL ONLY NEED ONE CHANNEL AND A MENU TO LEAD YOU WHERE YOU WANT TO GO ANYWAY THAT'S THE VISION POWERING UPSTART IDB A FORMER MILKEN JUNKBOND CLIENT NOW EXCEEDING 900 MILLION IN MARKET VALUE AND DOUBTLESS MANY OTHER SMART MULTIMEDIA PLAYERS AS WELL DIALING FOR DOLLARS IS THE WAY TO GO BUT THERE ARE SOME POTENTIAL HANGUPS ON THE PERSONAL LEVEL WILL MANY PEOPLE ACTUALLY PAY WHAT MR SUDIKOFF EXPECTS IN ORDER TO WATCH WITHOUT WATCHES OR DO THEY ON THE OTHER HAND ACTUALLY LIKE THE ORDER THAT A BROADCASTER'S TIMETABLE IMPOSES ON THEIR LIVES AS WELL AS THE FACT THAT IT LINKS THEM WITH OTHER PEOPLE WHO'RE WATCHING ALONG WITH THEM AND DO THEY IN FACT PREFER THE SERENDIPITY OF CHANNEL SURFING TO THE NEED TO KNOW WHAT THEY WANT BEFORE THEY TURN ON THE TUBE THE MARKET WILL ANSWER THOSE QUESTIONS BUT OTHER ASPECTS ARE POLITICAL HOW MANY CONTENT CURBS WILL GOVERNMENTS ATTEMPT TO IMPOSE ON CARRIERS IN AN AUTONOMOUS COMMUNICATIONS WORLD CONTROL MECHANISMS BREAK DOWN WE CELEBRATE THIS WHEN IT UNDERMINES TOTALITARIAN REGIMES WHAT ABOUT WHENNDERS INEFFECTUAL THE REMAINING OR NEWFOUND TABOOS OF OUR OWN SOCIETY SUCH AS ON HATEFUL OR VIOLENT MESSAGES EFFORTS TO SQUELCH PORNOGRAPHY THE MARKET FOR WHICH HAS LONG FUELED VIDEO INNOVATIONS WOULD BE MOOT OR WOULD THEY PHONE SEX SERVICES HAVE BEEN TAMED BY THE REGULATORS OF LOCAL WIRE MONOPOLIES THE SOFTWARE REVOLUTION IN TELECOMMUNICATIONS PROMISES TO LIBERATE IN MANY WAYS IT WILL REDUCE THE POWER THAT THE ARBITERS OF POPULAR CULTURE CURRENTLY ENJOY AND THE POLITICAL RIGHT AND FAR LEFT WILL GENERALLY GAIN FROM THAT CBS AND PBS AND PROBABLY THE BIG STUDIOS WILL HAVE TO SHARE MORE DISCRETION WITH MILLIONS OF US IN OUR HOMES INTENSITY OF DESIRE WILL COUNT FOR MORE MASS APPEAL FOR LESS OWNERSHIP OF INTELLECTUAL PROPERTY SHOULD TAKE ON ADDED VALUE HELPING THE TINIEST CREATORS BUT SOCIAL CONVENTIONS DIE HARD AND ASKING OR ALLOWING PEOPLE TO GO OFF THE COMMON CLOCK IS A LEAP ACTUAL NEWS PARTICULARLY AS IT AFFECTS TRADING IN THE MARKETS MUST ALWAYS BE CONTEMPORANEOUS AS FOR THE REST THE NOTION OF A SINGLE POINT SAYING EVERYBODY WATCH THIS NOW OR DEAL WITH THIS NOW IS HISTORY MAINTAINS MR SUDIKOFF TIME WILL TELL 9309280068 930928 PARAMOUNT DOES NOT ACT ON QVC OFFER BOARD WILL CONSIDER BID IF IT GETS SATISFACTORY EVIDENCE OF FINANCING' BY LAURA LANDRO AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL PARAMOUNT COMMUNICATIONS INC DIRECTORS TOOK NO ACTION ON QVC NETWORK INC'S 99 BILLION OFFER FOR THE COMPANY BUT SAID PARAMOUNT WILL CONSIDER THE QVC PROPOSAL WHEN THERE IS SATISFACTORY EVIDENCE OF FINANCING PARAMOUNT'S STOCK SURGED 2 A SHARE TO 77625 AS WALL STREET TRADERS REACTED TO PARAMOUNT'S FIRST STATEMENT THAT IT IS PREPARED TO TALK TO QVC AT THE SAME TIME AS IT PROCEEDS WITH ITS PLANNED MERGER WITH VIACOM INC VALUED YESTERDAY AT ONLY 79 BILLION THIS SOUNDS LIKE NOTHING IS GOING TO CHILL THE BIDDING PROCESS SAID MARIO GABELLI WHOSE GABELLI FUNDS OWN A LARGE PARAMOUNT STAKE AND TRADERS CONTINUED TO SPECULATE THAT OTHER BIDS MAY YET EMERGE MARTIN DAVIS PARAMOUNT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A TELEPHONE INTERVIEW THAT PARAMOUNT IS PROCEEDING WITH THE MERGER WHICH PROVIDES THE BEST STRATEGIC FIT WITH THE GREATEST LONGTERM POTENTIAL FOR OUR SHAREHOLDERS WE BELIEVE IN IT AND WE ARE COMMITTED TO IT VIACOM ALSO REITERATED THAT IT IS DETERMINED TO COMPLETE ITS MERGER WITH PARAMOUNT MR DAVIS AND VIACOM CHAIRMAN SUMNER REDSTONE DECLINED TO ADDRESS THE ISSUE OF WHETHER VIACOM WILL SWEETEN THE TERMS OF ITS OFFER BUT NEITHER RULED OUT DOING SO MR REDSTONE SAID THE ISSUE OF RAISING THE PERSHARE PRICE HASN'T BEEN DISCUSSED THOUGH SOME ON WALL STREET THINK HE COULD INCREASE THE AMOUNT OF CASH IN THE BID YESTERDAY A CONTINUING REBOUND IN THE STOCK PRICE OF VIACOM AND ANOTHER DROP IN QVC'S SHARE PRICE NARROWED THE GAP BETWEEN THE TWO BIDS BUT NOT ENOUGH TO MAKE MUCH DIFFERENCE BECAUSE THE GAP REMAINED 2 BILLION OR 1637 A SHARE VIACOM ALSO ANNOUNCED THAT IT HAD COMMITMENTS FROM BANKS TO LEAD THE FINANCING OF ITS BID INCLUDING THE BANK OF NEW YORK CITIBANK AND MORGAN GUARANTY TRUST CO OF NEW YORK VIACOM TOOK PARTICULAR GLEE IN POINTING OUT THAT ONE OF BANK OF NEW YORK'S DIRECTORS IS JOHN MALONE CHAIRMAN OF TELECOMMUNICATIONS INC AND LIBERTY MEDIA INC LIBERTY IS A PART OWNER OF QVC AND IS KICKING IN 500 MILLION TO FINANCE ITS BID MEANWHILE SOME INVESTMENT BANKERS SAY VIACOM'S MR REDSTONE IS INTENSIFYING TALKS THAT COULD BRING AN INFUSION OF 1 BILLION OR MORE FROM A REGIONAL BELL TELEPHONE COMPANY IN ORDER TO BOOST THE 910ASHARE CASH PORTION OF HIS OWN BID MR REDSTONE DECLINED TO DISCUSS HIS PLANS OTHER THAN TO SAY WITHIN 72 HOURS EVENTS WILL UNFOLD THAT WILL ALLOW VIACOM TO SUCCEED I DON'T INTEND TO REVEAL OUR STRATEGIC PLANS BUT WE WILL PREVAIL IN A MANNER APPEALING TO PARAMOUNT SHAREHOLDERS HE SAID MR DAVIS YESTERDAY DENIED EARLIER REPORTS ATTRIBUTED TO PARAMOUNT ADVISERS THAT VIACOM HAD BEEN INFORMED THAT ITS BID COULDN'T BE APPROVED BY SHAREHOLDERS AT ITS CURRENT VALUE HOWEVER PEOPLE WHO ATTENDED A MEETING THURSDAY BETWEEN MR REDSTONE'S ADVISERS AT SMITH BARNEY SHEARSON INC AND PARAMOUNT'S INVESTMENT BANKERS AT LAZARD FRERES & CO SAID THE LAZARD BANKERS DID CONVEY THAT OPINION PARAMOUNT DIRECTORS WHO MET FOR NEARLY FOUR HOURS YESTERDAY DIDN'T FIND ACCEPTABLE AS EVIDENCE OF FINANCING A LETTER FROM QVC CHAIRMAN BARRY DILLER SAYING QVC COULD EASILY FINANCE ITS OFFER THE PARAMOUNTVIACOM MERGER AGREEMENT BARS PARAMOUNT FROM TALKING TO ANY RIVAL BIDDER UNLESS THE RIVAL BID ISN'T SUBJECT TO ANY MATERIAL CONTINGENCIES RELATED TO FINANCING PARAMOUNT IS REQUIRING ACTUAL LETTERS OF COMMITMENT FROM BANKS WHICH WOULD REQUIRE QVC TO SPEND SEVERAL MILLION DOLLARS IN FEES UP FRONT QVC SAID IN A STATEMENT THAT ITS PROPOSAL IS FAR SUPERIOR TO THE VIACOM OFFER AND WE ARE CONFIDENT THAT ULTIMATELY THE BEST INTERESTS OF PARAMOUNT SHAREHOLDERS WILL BE SERVED QVC ADVISERS SAID THAT THERE IS NO PROBLEM IN LINING UP THE BANK FINANCING BUT THAT THE DELAY IS IN NEGOTIATING THE BEST TERMS CONSISTENT WITH OUR LEGAL OBLIGATIONS WE WILL CONSIDER THE QVC BID IF AND WHEN WE HAVE SATISFACTORY EVIDENCE OF FINANCING MR DAVIS SAID HE ADDED HOWEVER THAT IF WE EVER GET INTO QVC DISCUSSIONS WE WILL HAVE OTHER BIG CONCERNS THAT GO BEYOND THE ISSUES OF FINANCING HE DECLINED TO ELABORATE BUT PARAMOUNT IS SAID TO BE SCRUTINIZING BOTH THE VALUE OF QVC STOCK AND REGULATORY ISSUES BOTH THE PARAMOUNT AND VIACOM CAMPS HAVE BEEN PUTTING OUT THE MESSAGE TO WALL STREET THAT THEY BELIEVE QVC STOCK IS OVERINFLATED AND THAT MR DILLER'S MERITS AS AN EXECUTIVE ARE BEING GIVEN FAR TOO MUCH WEIGHT MOREOVER THEY SAY THAT IF PARAMOUNT ACCEPTED THE QVC OFFER QVC STOCK COULD FALL AS LOW AS 35 A SHARE THAT WOULD MAKE THE QVC OFFER WORTH ONLY 6126 A SHARE OR 73 BILLION THEY ALSO CRITICIZE THE TERMS OF A RECENT 1 BILLION PREFERREDSTOCK INVESTMENT IN QVC BY LIBERTY AND COMCAST CORP AS OVERLY GENEROUS TO LIBERTY AND COMCAST THE PREFERRED'S DIVIDEND RATE RISES FROM AN INITIAL 65 TO 75 AND THE SECURITIES HAVE A CONVERSION PRICE OF 66 A COMMON SHARE ONLY 11 OVER THE CURRENT MARKET PRICE AND THE PREFERRED CAN'T BE REDEEMED UNTIL THE COMMON RISES TO 100 A SHARESTICKING QVC WITH A BIG DIVIDEND REQUIREMENT HOWEVER ONE QVC SHAREHOLDER LARRY HAVERTY OF STATE STREET RESEARCH & MANAGEMENT IN BOSTON SAID THAT ALTHOUGH THE PREFERRED IS A LITTLE EXPENSIVE AS A DEBT SECURITY SINCE IT COUNTS AS EQUITY IT COULD REDUCE THE COMPANY'S OVERALL COST OF BORROWING HE SAID IT ALSO REPRESENTED A MASSIVE INSIDER BUY BY TWO OF THE SMARTEST PEOPLE IN THE BUSINESS LIBERTY'S MR MALONE AND COMCAST PRESIDENT BRIAN ROBERTS 9309280067 930928 SCRAMBLED PICTURE HOW CABLETV FIRMS RAISED RATES IN WAKE OF LAW TO CURB THEM THE 1992 ACT WAS DRAWN UP WITHOUT INDUSTRY HELP AND FCC WAS HOBBLED BUT SOME CONSUMERS BENEFIT BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CONGRESS PASSED THE CABLE ACT OF 1992 LAST OCT 5 MANY CABLETELEVISION SUBSCRIBERS EXPECTED TO SEE AN END TO THE INCREASES IN THEIR MONTHLY BILLS SOME OF WHICH HAD SURGED 60 SINCE THE INDUSTRY WAS DEREGULATED IN 1987 THE FEDERAL COMMUNICATIONS COMMISSION PROMISED AN AVERAGE ROLLBACK OF UP TO 10 FOR TWOTHIRDS OF THE NATION'S CABLE CUSTOMERS BUT A YEAR LATER CABLE COMPANIES ARE FINDING LOOPHOLES IN THE NEW LAW TO RAISE RATES RATHER THAN REDUCE THEM IN MANY CASES EVEN FOR LOWINCOME CUSTOMERS WITH THE LEAST SERVICE HOW DID THE MOST IMPORTANT CONSUMER VICTORY OF THE PAST 20 YEARS AS ONE CONGRESSMAN CALLED THE LAW GO SO BAD FOR ONE THING CONGRESS WROTE THE LEGISLATION WITH LITTLE HELP FROM THE INDUSTRY AND IN TERMS SO NARROW AND STRICTLY DEFINED THAT THE FCC HAD LITTLE DISCRETION TO MAKE DESIRABLE CHANGES IN ADDITION THE FCC HAD TOO LITTLE TIME AND STAFF TO DRAFT RULES FOR ENFORCING THE NEW ACT NEVERTHELESS FCC STAFFERS CHURNED OUT MORE THAN 500 PAGES OF ARCANE SOMETIMESCONFLICTING REGULATIONS AND IN SETTING BENCHMARKS FOR WHAT CONSTITUTES FAIR RATES THE FCC PARTLY BECAUSE OF THE WAY THE LAW WAS WRITTEN RELIED ON QUESTIONABLE DATA THAT INFLATED PRICES AND MANY CABLE COMPANIES WORKED TO UNDERCUT THE LAW SOME USED LAPSES IN THE LAW TO RAISE A VARIETY OF CHARGES TO OFFSET ANY RATE REDUCTIONS SOME URGED LOCAL GOVERNMENTS TO FORGO THE LAW'S NEW POWERS OF REGULATION IN FAVOR OF INCENTIVES AND SIDE DEALS SOME PROVIDED INCOMPLETE AND INACCURATE INFORMATION TO THE FCC WHEN IT WAS DRAFTING THE REGULATIONS WHILE OPPOSING THE BILLS IN CONGRESS CABLE OPERATORS HAD PREDICTED THAT RATES WOULD GO UP NOT DOWN IF THE BILLS WERE PASSED SINCE THEN THEY HAVE LABORED TO MAKE THAT PREDICTION COME TRUE RAISING RATES AND TELLING CONSUMERS THE CABLE LAW IS TO BLAME CLEARLY SOMETHING HAS GONE WRONG WITH THE IMPLEMENTATION OF THE REGULATIONS SAYS ONE OF ITS CHIEF ARCHITECTS REP ED MARKEY THE MASSACHUSETTS DEMOCRAT RECENTLY SENT ACTING FCC CHAIRMAN JAMES QUELLO A LETTER SIGNED BY 130 MEMBERS OF CONGRESS URGING THE FCC TO RECONSIDER ITS APPROACH TODAY A MARKEYHEADED HOUSE SUBCOMMITTEE IS EXPECTED TO GRILL FCC MEMBERS ABOUT HOW AND WHY CABLE OPERATORS COULD JACK UP RATES SO SOON AFTER THE LAW WAS PASSED THE FCC MEANWHILE IS SURVEYING THE TOP 25 COMPANIES WHICH COVER TWOTHIRDS OF THE NATION'S 58 MILLION HOMES WITH CABLE SERVICE TO DEMAND RATE CARDS AND CHANNEL LINEUPS TO DETERMINE HOW MUCH AND WHERE RATES HAVE RISEN THE FIASCO SURROUNDING CABLETV REREGULATION PROVIDES FODDER FOR CRITICS WHO SAY CONGRESS HAS NO PLACE REGULATING A FASTGROWING CONSUMERDRIVEN INDUSTRY WHOSE PRODUCTS ARE MTV AND SUPERSTATION TBS HARDLY THE NECESSITIES OF LIFE AS PROVIDED BY OTHER REGULATED INDUSTRIES SUCH AS ELECTRIC UTILITIES WHILE CABLE CERTAINLY HAS MONOPOLISTIC CHARACTERISTICS THEY ARGUE IT SHOULD BE KEPT IN CHECK BY AGGRESSIVE ANTITRUST OVERSIGHT AND ENCOURAGEMENT OF COMPETITION FROM NEW PLAYERS SUCH AS THE REGIONAL TELEPHONE COMPANIES MEANWHILE CONGRESS BLAMES THE FCC FCC STAFFERS BLAME CONGRESS CABLE COMPANIES BLAME BOTH PARTIES AND ALTHOUGH MANY CONSUMERS HAVE OBTAINED RATE CUTS MANY OTHERS JUST WANT RATE RELIEF IT'S AN OUTRAGE SAYS LEROY HUNT A LOWINCOME SENIOR CITIZEN IN PLAINVILLE CONN WHOSE BILL HAS JUST MORE THAN DOUBLED TO 2541 A MONTH FOR SERVICE ON A SYSTEM OWNED BY TELECOMMUNICATIONS INC THE SYSTEM WRAPPED IN 15 MORE CHANNELS TO HELP JUSTIFY THE INCREASE BUT MR HUNT ISN'T MOLLIFIED IT'S OVER THE LIMIT THIS LAW JUST GAVE THEM AN EXCUSE TO RAISE OUR RATES HE FUMES HOW CAN THEY GET AWAY WITH THIS A TCI SPOKESMAN IN PLAINVILLE SAYS THE COMPANY HAS STOPPED DISCOUNTS FOR SENIOR CITIZENS SUCH AS MR HUNT ADDED THE 15 CHANNELS AND RAISED ITS RATES TO THE NEW FCC BENCHMARKS WE DON'T HAVE THE FLEXIBILITY TO CHARGE THE LOWINCOME RESIDENTS LOWER RATES BECAUSE OF THE OTHER RESTRICTIONS HE SAYS FOR EXAMPLE TCI NO LONGER CHARGES FOR ADDITIONAL OUTLETS WHICH PREVIOUSLY COST 470 A MONTH AND NOW CHARGES ONLY A DIME FOR REMOTE CONTROLS WHICH HAD COST 360 A MONTH LOCAL SYSTEMS HAVE SIDESTEPPED BIG REDUCTIONS THANKS TO THE WAY THE RULES WERE WRITTEN FOR EXAMPLE IN LOS ANGELES CUSTOMERS WHO PAID 1630 FOR THE CHEAPEST PACKAGE BEFORE THE NEW LAW NOW PAY 2467 A 51 INCREASE UNLESS THEY CAN QUALIFY FOR LOWINCOMEHOUSEHOLD DISCOUNTS CENTURY COMMUNICATIONS CORP WHICH OWNS THE SYSTEM WAS ABLE TO RAISE THE CHARGE BY ADDING EIGHT CHANNELS TO WHAT HAD BEEN A 23CHANNEL PACKAGE THE RULES INVITE SUCH ADDONS BY DEFINING HOW MUCH CABLE CAN CHARGE BASED ON HOW MANY CHANNELS ARE INVOLVED IN CONNECTICUT STATE ATTORNEY GENERAL RICHARD BLUMENTHAL HAS ASKED THE FCC TO INVESTIGATE RATE INCREASES THERE IN ONE INSTANCE CONTINENTAL CABLEVISION CORP HAS RAISED THE PRICE OF STANDARD CABLE SERVICE TO 9 A MONTH FROM 795 EVEN THOUGH IT DROPPED TWO CHANNELS FROM THE PACKAGE IN SETTING MINIMUM CHARGES THE RULES HAVE ALL BUT ENCOURAGED SYSTEMS BELOW THE MINIMUM TO MATCH THE FCC FIGURE THE COMPANY SAYS THAT ITS RATES ARE STILL WITHIN THE NEW FCC BENCHMARKS AND THAT IT HAS ELIMINATED ADDITIONALOUTLET FEES AMONG OTHER REDUCTIONS IN MILWAUKEE TIME WARNER INC DIDN'T CHANGE ITS BASIC RATES BUT REMOVED FOUR CHANNELS FROM THE PACKAGE AND SET THEM UP AS A SEPARATE TIER FOR AN EXTRA 220 A MONTH BECAUSE THE LAW MAINLY REGULATES ONLY BASIC CABLE RATES SYSTEMS CAN SIDESTEP THE IMPACT BY REMOVING CHANNELS FROM THE BASIC PACKAGE TO SET UP NEW UNREGULATED PACKAGES THE TIME WARNER SYSTEM CHARGES CUSTOMERS FOR THE FOUR CHANNELS DISCOVERY WTBS WGN AND E AUTOMATICALLY UNLESS THEY GO TO THE TROUBLE OF REJECTING THE NEW TIER SAYS A TIME WARNER SPOKESMAN THESE ARE THE SAME CHANNELS AT THE SAME PRICE RECONFIGURED TO ALLOW PEOPLE THE CHOICE OF REDUCING THEIR CABLE BILL IF THEY WISH IT'S CLEARLY CONSISTENT WITH NEW REGULATIONS IN NEW YORK THE TIME WARNER SYSTEM FOUND A WAY AROUND THE LAW'S EXPRESS PROHIBITION AGAINST CABLE OPERATORS' OVERCHARGING FOR ADDITIONAL TV HOOKUPS IN A HOME AFTER REDUCING SUCH CHARGES FROM 11 TO 324 COST PLUS A SMALL PROFIT TIME WARNER TACKED ON 650 FOR EACH ADDITIONAL SET THAT RECEIVES HOME BOX OFFICE A PREMIUM SERVICE INSTALLATION RATES IN MANHATTAN WILL JUMP 50 TO 60 FROM 3995 BECAUSE THE LAW DOESN'T EXPRESSLY FORBID INCREASES IN SUCH CHARGES A TIME WARNER SPOKESMAN SAYS THE LAW PERMITS THE COMPANY TO PASS ALONG INCREASES ON UNREGULATED SERVICES SUCH AS HBO TO CONSUMERS HE ADDS THAT ONETIME INSTALLATION CHARGES WHICH MUST NOW REFLECT ACTUAL COSTS CAN NO LONGER BE SUBSIDIZED BY MORE EXPENSIVE LEVELS OF SERVICE ALL THIS ISN'T THE WAY THE LAW WAS SUPPOSED TO TURN OUT OF COURSE PRODDED BY ANGRY CONSUMERS AND THWARTED IN EARLIER LEGISLATIVE EFFORTS CONGRESS PASSED THE 1992 LAW TO CAP RATES AT REASONABLE LIMITS GIVE LOCAL GOVERNMENTS BROAD OVERSIGHT AUTHORITY AND REQUIRE CABLE CHANNELS TO SELL THEIR PROGRAMMING TO DIRECTBROADCAST SATELLITE COMPANIES AND OTHER RIVALS CONGRESS ENACTED THE LAW WITH SURPRISINGLY LITTLE INPUT FROM INDUSTRY EXPERTS EARLY ON IN THE DRAFTING OF BILLS IN THE HOUSE AND SENATE SENIOR ADVISERS TO PRESIDENT BUSH VOWED THAT HE WOULD VETO ANY CABLE REGULATION IN KEEPING WITH THE ADMINISTRATION'S ANTIREGULATORY STANCE THE ADVISERS WARNED CABLEINDUSTRY LEADERS THAT THE PRESIDENT'S POSITION WOULD BE MUCH EASIER TO SUSTAIN IF CABLE COMPANIES DIDN'T COMPROMISE WITH THE CONGRESSIONAL STAFFERS WRITING THE BILLS INSTEAD MAJOR CABLE COMPANIES LAUNCHED A FRONTAL ASSAULT ON THE LEGISLATION THEY LOBBIED LAWMAKERS AND ATTACKED THE BILLS AS ANTICONSUMER RECALLS ONE SENATE STAFFER WE JUST WANTED TO COME TO TERMS WITH THEM WE WOULD HAVE LIKED TO HAVE HAD MORE SUGGESTIONS CABLE LOBBYISTS SAY HOWEVER THAT THEY PUSHED FOR ALTERNATIVE PROVISIONS THAT CONGRESS DIDN'T WANT NEVERTHELESS WHEN CONGRESS OVERRODE PRESIDENT BUSH'S VETO THE ONLY TIME IT MANAGED TO DO SO THE FCC HAD LITTLE FLEXIBILITY IN WRITING THE RULES THERE HAVE BEEN TOO MANY PROMISES AND TOO MANY EXPECTATIONS THAT EVERYONE'S RATES WOULD GO DOWN BECAUSE OF THE LAW MR QUELLO SAYS MY INTENT IS TO REGULATE THE INDUSTRY RESPONSIBLY AND THE LAW DIDN'T PRESCRIBE THAT RATES WOULD GO DOWN FOR ANYONE IT SAID THAT RATES SHOULD BE REASONABLE HE ADDS CABLE COMPANIES HAVE FOUND WAYS OF GETTING AROUND THE LAW BUT REMEMBER THERE IS A CLAUSE IN THE ACT THAT IF WE FIND THESE INCREASES CONSTITUTE ILLEGAL EVASION WE CAN ROLL BACK RATES IN THEIR ZEAL TO GIVE CONSUMERS IMMEDIATE RELIEF LAWMAKERS ALLOWED THE FCC PRECIOUS LITTLE TIME TO DEVISE A LABYRINTHINE SET OF REGULATIONS THE FCC HAD ONLY SIX MONTHS TO SET UP A FRAMEWORK TO AID 33000 LOCALGOVERNMENT BODIES IN REGULATING 11000 CABLE SYSTEMS EACH OFFERING A DIFFERENT NUMBER OF CHANNELS TO VARYING NUMBERS OF SUBSCRIBERS WORSE YET THIS MONUMENTAL TASK WAS UNDERTAKEN BY A STAFF THAT HAD 216 FEWER PEOPLE THAN WHEN THE CABLE INDUSTRY WAS DEREGULATED BY A 1984 LAW THIS WAS A NIGHTMARE OF COMPLEXITY SAYS ROBERT PEPPER THE FCC'S HEAD OF PLANS AND POLICY THE FIRST AND MOST IMPORTANT PRIORITY WAS TO FIGURE OUT WHAT A FAIR CABLE RATE WOULD BE THE PRICE CONSUMERS WOULD PAY IF CABLE SYSTEMS HAD RIVALS IN THEIR MARKETS BECAUSE FEWER THAN 1 DO DEVISING FAIR BENCHMARKS WASN'T SIMPLE MOREOVER A REPORT TO BE RELEASED TODAY CONTENDS THAT THE FCC ENDED UP USING FAULTY DATA IN SETTING THE PRICING BENCHMARKS FOR THE RATE REDUCTIONS WRITTEN BY AERIE GROUP A CONSULTANT TO LOCAL GOVERNMENTS THE REPORT CONTENDS THAT HAD THE FCC USED MORE ACCURATE INFORMATION AND HAD MANY CABLE COMPANIES PROVIDED ITRATES WOULD HAVE FALLEN MORE THAN 20 INSTEAD OF THE 10 THE FCC HAD HOPED FOR AND IN NO CASE WOULD RATES BE RISING THEY BUILT A TERRIBLY COMPLEX REGULATORY STRUCTURE AROUND NUMBERS THAT ARE FUNDAMENTALLY FLAWED CHARGES SCOTT RAFFERTY AERIE GROUP'S PRESIDENT THE NEW CABLE LAW REQUIRED THE FCC TO SET RATE BENCHMARKS BY COMPUTING THE AVERAGE PRICES IN THE FEW MARKETS WHERE CABLE HAD EFFECTIVE COMPETITION DEFINED BY THE ACT IN SEVERAL WAYS INCLUDING A MARKET IN WHICH A SYSTEM SERVES FEWER THAN 30 OF THE LOCAL HOUSEHOLDS THE LAW ASSUMED THAT SYSTEMS FACING COMPETITION CHARGE LOWER RATES THAN MONOPOLIES DO IN FACT HOWEVER MANY OF THE SOLEPROVIDER SYSTEMS WITH FEWER THAN 30 OF THE HOUSEHOLDS ACTUALLY CHARGE HIGHER RATES FCC DATA SHOW BY INCLUDING THE RATES CHARGED BY THE 30 SYSTEMS IN COMPUTING WHAT RATES ARE FAIR THE FCC VASTLY INFLATED THE PRICES IT WOULD ALLOW HAD THE FCC EXCLUDED THOSE SYSTEMS CABLE RATES WOULD HAVE FALLEN 28 ACCORDING TO ITS OWN CALCULATIONS AERIE GROUP SAYS BASIC RATES WOULD HAVE DROPPED 22 HAD THE FCC EXCLUDED THE LOWPENETRATION SYSTEMS FURTHERMORE MR RAFFERTY CONTENDS THAT THE FCC'S METHODOLOGY RELIES HEAVILY ON THE WRONG VARIABLES FCC OFFICIALS SAY HOWEVER THAT THEY CAN'T EXCLUDE THE SKEWED SYSTEMS BECAUSE THE LAW'S STRICT WORDING REQUIRES THAT THEY BE CONSIDERED THE FCC SAYS IT SIMPLY ISN'T IN A POSITION TO ALTER THE PLAIN LANGUAGE OF THE STATUTE CABLE EXECUTIVES ARE HOLDING THE FCC TO THAT POINT THAT THE COMMISSION BELIEVES THAT SOME SYSTEMS WITH LESS THAN 30 PENETRATION HAVE RATES SIMILAR TO OTHER SYSTEMS IS BESIDE THE POINT THE COMMUNITY ANTENNAE TELEVISION ASSOCIATION A CABLE TRADE GROUP SAID IN COMMENTS TO THE REGULATORY BODY THE COMMISSION IS BOUND BY THE STATUTE BUT REP MARKEY DECLARING CONGRESS ISN'T TO BLAME SAYS THE FCC COULD IF IT WISHED EXCLUDE THE 30 SYSTEMS WE'RE LEAVING THEM DISCRETION TRYING TO FIND OUT WHAT ALL 11000 CABLE SYSTEMS WERE CHARGING THE FCC DEVISED A MODEL BASED ON A RANDOM SURVEY OF MORE THAN 700 OF THEM CRITICS CONTEND THAT THE AGENCY UNWITTINGLY RELIED ON INCOMPLETE AND INACCURATE INFORMATION FROM CABLE COMPANIES AND DIDN'T THOROUGHLY AUDIT THE FIGURES ONE CABLE OPERATOR IN TEXAS ERRONEOUSLY TOLD THE FCC THAT ITS MONTHLY FEES AVERAGED 10000 PER SUBSCRIBER THREE DOZEN COMPANIES IN THE SURVEY FAILED TO TELL THE FCC THEIR TOTAL REVENUE FROM BASIC CABLE RATES 29 DIDN'T DISCLOSE HOW MANY HOUSEHOLDS THEY SERVED AND 13 DIDN'T SAY WHAT THEY CHARGE FOR BASIC CABLE ALTHOUGH FCC OFFICIALS SAY THEY WEEDED OUT INACCURACIES AND DISCOUNTED THEM FROM THE CALCULATIONS CRITICS DOUBT IT THE CABLE SYSTEMS WITH EGREGIOUS RATES ARE THE ONES WITH THE BIGGEST INCENTIVES TO MISREPORT AND THE FCC DOESN'T KNOW FOR SURE WHETHER THEY HAVE OR NOT SAYS MARK COOPER WHO STUDIED THE DATA FOR THE CONSUMER FEDERATION OF AMERICA IF YOU'RE GOING TO SET THE RATES FOR 60 MILLION PEOPLE YOU OUGHT TO HAVE GOOD FIRM ANSWERS CRITICS ALSO SAY THE FCC ERRED FURTHER BY A RIGID SET OF PERCHANNEL PRICE LIMITS BASED ON THE NUMBER OF CHANNELS A LOCAL SYSTEM CARRIED AND THE TOTAL NUMBER OF ITS SUBSCRIBERS MANY SYSTEMS HAD BEEN CHARGING HIGHER RATES THAN THE FCC BENCHMARKS WOULD ALLOW FOR THE MOST POPULAR EXPANDED TIERS BUT FAR BELOW THE FCC LIMITS FOR BASIC CABLE PACKAGES SO THE SYSTEMS REDUCED CHARGES FOR THE COSTLIER PACKAGES AND RECOUPED THE MONEY BY RAISING BASICCABLE RATES THAT SHIFT DEFIED A MAJOR GOAL OF THE NEW LAW TO SAFEGUARD THE AFFORDABILITY OF BASIC TV SERVICE TO LOWINCOME PEOPLE OTHER CABLE COMPANIES ARE SLICING CHANNELS OUT OF THE BASIC LINEUP AND OFFERING THEM A LA CARTE FOR ABOUT 1 EACH AS A RESULT CUSTOMERS WHO WANT THE SAME SERVICE AS BEFORE REGULATION NOW PAY MORE A DISGRUNTLED CUSTOMER THERE MUST BE A BETTER WAY OF DOING THIS SAYS HAL PAISS A CUSTOMER OF THE CENTURY COMMUNICATIONS SYSTEM IN LOS ANGELES WHOSE MONTHLY BILL SHOT UP TO 2955 FROM 2540 THE PEOPLE WHO WERE ABLE TO AFFORD ALL THE FANCIES AND ADDITIONAL CHANNELS MADE OUT LIKE BANDITS BUT THE POOR SLOB WHO HAD ONE TV WITH THE BASIC SERVICE HE'S THE ONE PAYING THE PENALTY DESPITE ALL THE PROBLEMS KEY MEMBERS OF CONGRESS STAND BY THE NEW LAW PROPONENTS SAY THE PROVISION FORCING CABLE CHANNELS TO SELL THEIR SERVICE TO SUCH NEWCOMERS AS DIRECTBROADCAST SATELLITE COMPANIES WILL HELP THE NEW RIVALS AND THEY NOTE THAT MANY CONSUMERS WILL GET SOME RATE CUTS INDEED THE CABLE INDUSTRY'S TRADE ASSOCIATION CONTENDS THAT THE LAW WILL REDUCE CABLE COMPANIES' REVENUE BY 17 BILLION A YEAR TCI THE LARGEST OPERATOR SAYS MORE THAN 80 OF ITS CUSTOMERS WILL GET RATE CUTS TOTALING 160 MILLION A YEAR BUT THAT WORKS OUT TO ONLY 20 PER CUSTOMER PER YEAR TIME WARNER THE NO 2 OPERATOR ESTIMATES THE NEW LAW WILL TRIM AS MUCH AS 100 MILLION OFF ITS ANNUAL CABLE REVENUE I PREFER COMPETITION TO REGULATION BUT WE HAD TO SOLVE A BASIC PROBLEM SAYS SEN JOHN DANFORTH A MISSOURI REPUBLICAN AND A KEY BACKER OF THE 1992 LAW CABLE OPERATORS WERE GOING UNCHECKED AND UNREGULATED MONOPOLIES ARE BAD AS CONGRESS LOOKS INTO WHAT WENT WRONG THE FCC MAY EVENTUALLY REVISE ITS MUCHCRITICIZED PRICING BENCHMARKS AND IMPOSE NEW ONES THAT COULD REQUIRE STEEPER REDUCTIONS IN CABLE RATES LOCAL GOVERNMENTS ALSO MAY TRY TO FORCE CABLE SYSTEMS TO PEEL BACK THE LATEST RATE INCREASES AND CONGRESS AND THE FCC MAY GET ANOTHER CRACK AT CABLE REGULATION ON AN ENTIRELY DIFFERENT FRONT ONLY NOW ARE LAWMAKERS BEGINNING TO GRAPPLE WITH HOW THE TELECOMMUNICATIONS LANDSCAPE WILL LOOK IN THE NEXT CENTURY AND WHERE CABLE FITS INTO IT BUT THIS TIME AROUND CONGRESS IS LOOKING AT COMPETITION RATHER THAN REGULATION JUST LAST MONTH THE SENATE HELD HEARINGS ON A BILL THAT WOULD LET TELEPHONE COMPANIES ENTER THE CABLE BUSINESS 9309280066 930928 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BEIJING AUTHORITIES ARRESTED A REPORTER FOR MING PAO A HONG KONG NEWSPAPER NOTED FOR AUTHORITATIVE CHINA COVERAGE THE REPORTER XI YANG WAS DETAINED ON A CHARGE OF ESPIONAGE REGARDING STATE SECRETS ON BANKING IN VIOLATION OF THE STATE SECURITY LAW THE OFFICIAL XINHUA NEWS AGENCY SAID THE REPORT SAID OTHERS HAD BEEN ARRESTED IN THE CASE BUT IT DIDN'T ELABORATE MING PAO SAID IT WASN'T AWARE OF ANY WRONGDOING BY ITS REPORTER WITH THE APPROACH OF HONG KONG'S RETURN TO CHINESE SOVEREIGNTY IN 1997 NEWSPAPERS IN THE BRITISH COLONY ARE STEPPING UP THEIR CHINA COVERAGE MING PAO A CHINESELANGUAGE PAPER OFFERS EXTENSIVE REPORTS ON CHINA'S POLITICS AND ECONOMY SEPARATELY IN CHINA'S ANTICORRUPTION CAMPAIGN EIGHT BANKING AND INVESTMENT WORKERS WERE EXECUTED IN FOUR EMBEZZLEMENT CASES INCLUDING THE COUNTRY'S BIGGEST EVER INVOLVING 587 BILLION STATE MEDIA SAID A US MOVE TO LINK ARMS SALES TO INDONESIA WITH JAKARTA'S HUMANRIGHTS RECORD HAS STALLED TO THE RELIEF OF THE INDONESIAN GOVERNMENT AND US COMPANIES DOING BUSINESS IN THE COUNTRY A US SENATE AMENDMENT ON THE ARMS ISSUE WHICH HAD BEEN APPROVED BY THE FOREIGN RELATIONS COMMITTEE WASN'T ATTACHED TO A FOREIGNAID BILL THE AMENDMENT STEMMED FROM THE NOVEMBER 1991 KILLING OF DEMONSTRATORS BY INDONESIAN TROOPS IN EAST TIMOR MEANWHILE INDONESIAN TROOPS FIRED ON 500 PEOPLE PROTESTING A PLANNED DAM ON AN ISLAND NORTH OF JAVA LAST WEEKEND KILLING THREE JAKARTA NEWSPAPERS SAID TOKYO'S PROSECUTOR ARRESTED GOV SHUNTARO HONMA OF MIYAGI PREFECTURE ABOUT 150 MILES NORTH OF TOKYO ON CHARGES OF ACCEPTING ABOUT 189000 IN BRIBES FROM TAISEI CORP IN CONNECTION WITH ITS BID ON A HOSPITAL PROJECT TWO EMPLOYEES OF TAISEI ONE OF THE COUNTRY'S BIGGEST CONTRACTORS ALSO WERE ARRESTED MR HONMA IS THE SECOND GOVERNOR IN TWO MONTHS TO BE ARRESTED IN JAPAN'S CONSTRUCTIONINDUSTRY SCANDAL WHICH ALSO FIGURED IN THE OUSTER OF THE LIBERAL DEMOCRATS IN JULY ELECTIONS THE US HAS BEEN PRESSING JAPAN TO CRACK DOWN ON BRIBERY AND BIDRIGGING TO GIVE FOREIGN CONSTRUCTION COMPANIES A BETTER CHANCE TO WIN CONTRACTS CHINA WILL BUILD A NUCLEAR REACTOR AT THE DAQING OIL FIELD 120 MILES NORTHWEST OF BEIJING IN ITS LARGEST EFFORT TO PROVIDE ATOMICFIRED URBAN HEATING CHINA'S ONLY KNOWN CITYHEATING REACTOR AT THE HIGHTECHNOLOGY QINGHUA UNIVERSITY IS AN EXPERIMENTAL 50MEGAWATT MODEL WITH A CHINESE DESIGN BEING ADAPTED FOR COMMERCIAL APPLICATIONS CONSTRUCTION OF THE 200MEGAWATT PLANT IN DAQING DESIGNED TO WARM 43 MILLION SQUARE FEET OF BUILDINGS WILL BEGIN NEXT YEAR A COST ESTIMATE WASN'T DISCLOSED BUT CHINA NATIONAL NUCLEAR CORP HAS BEEN ALLOWED TO ABANDON ITS POLICY OF RELYING ONLY ON CHINESE TECHNOLOGY AND DOMESTICALLY PRODUCED PARTS WESTERN GERMANY HAD THE WORLD'S HIGHEST UNITLABOR COSTS LAST YEAR THE INSTITUTE FOR GERMAN ECONOMICS IN COLOGNE SAID THIS EXPENSE PER EMPLOYEE TO PRODUCE AN ITEM PUT GERMANY AT A COMPETITIVE DISADVANTAGE IN DEALING WITH RECESSION WESTERN GERMANY WAS FOLLOWED IN THE INSTITUTE'S RANKINGS BY BELGIUM DENMARK THE NETHERLANDS LUXEMBOURG FRANCE SPAIN THE US BRITAIN ITALY JAPAN IRELAND PORTUGAL AND GREECE TAIWAN SAID FOREIGN INVESTMENT APPROVED IN THIS YEAR'S FIRST EIGHT MONTHS DROPPED 18 TO 717 MILLION FROM A YEAR EARLIER MAINLY BECAUSE OF A 38 DECREASE IN JAPANESE INVESTMENTS TO 171 MILLION THE US WAS THE LARGEST INVESTOR WITH A TOTAL OF 153 MILLION UP 38 TAIWAN'S ELECTRONICS AND ELECTRICAPPLIANCE INDUSTRY ATTRACTED THE LARGEST SHARE 143 MILLION OR 20 OF THE TOTAL CHEMICALS HAD 12 INTERNATIONAL TRADE 10 METAL MANUFACTURING 9 AND FINANCE AND INSURANCE 8 BRITAIN TRAILS OTHER WESTERN NATIONS IN PROMOTING WOMEN IN MANAGEMENT AND PAYING THEM AS MUCH AS MEN THE EQUAL OPPORTUNITIES COMMISSION SAID A STUDY LAST YEAR FOUND THAT JUST 9 OF MANAGERS AND 3 OF SENIOR MANAGERS IN BRITISH COMPANIES WERE WOMEN ONLY A THIRD OF 800 MALE MANAGERS SURVEYED STRONGLY BELIEVED WOMEN HAD POSITIVE SKILLS TO OFFER OF 1500 FEMALE MANAGERS POLLED MANY SAID THEY DIDN'T GET ENOUGH RESPECT OR SUPPORT FROM MALE COLLEAGUES ALMOST 40 OF THE WOMEN WHO TOOK MATERNITY LEAVE FROM MANAGEMENT POSTS RETURNED TO LOWERRANKING JOBS THE COMMISSION SAID FEMALE MANAGERS AND ADMINISTRATORS WERE PAID TWOTHIRDS THE AVERAGE FOR MEN IN SIMILAR JOBS LAST YEAR 23 YEARS AFTER PASSAGE OF A LAW AIMED AT EQUALIZING PAY WOMEN TYPICALLY ARE HIRED FOR LOWPAYING JOBS WITH HIGHPAYING POSITIONS AND PROMOTIONS RESERVED FOR MEN THIS PATTERN RANGES FROM THE PROFESSIONS TO THE CIVIL SERVICE WHERE THE TOTAL OF MEN AND WOMEN IS ABOUT EQUAL BUT MEN HOLD MORE MANAGERIAL POSTS SCIENTISTS USING SATELLITES SAID JAPAN'S MOUNT FUJI IS 12385 FEET HIGH 26 INCHES LOWER THAN THE OFFICIAL MEASURE IN 1926 OF THE DORMANT VOLCANO'S SUMMIT BUT AS A PRIVATE SURVEY FIRM ESTABLISHED THE REVISED HEIGHT JAPAN DOESN'T PLAN TO CORRECT ITS OFFICIAL RECORDS THE FRENCH LAST YEAR DRANK AN AVERAGE OF 17 GALLONS OF WINE LESS THAN HALF THE 40 GALLONS OR SO IN 1957 AN INDUSTRY STUDY FOUND 9309280065 930928 HEARD ON THE STREET MITEL ATTRACTS THE INTEREST OF US INVESTORS BUT CANADIAN ANALYSTS ARE PERPLEXED BY FRENZY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL OH THOSE CRAZY YANKEES PEOPLE IN CANADA CAN'T UNDERSTAND WHY US INVESTORS ARE FALLING ALL OVER THEMSELVES TO BID UP THE SHARE PRICE OF MITEL AN ONTARIO MAKER OF CORPORATE TELEPHONESWITCHING SYSTEMS THE STOCK HAS JUMPED 31 IN THE PAST TWO WEEKS ON THE NEW YORK STOCK EXCHANGE AND A SIMILAR AMOUNT IN TORONTO CLOSING YESTERDAY IN BIG BOARD COMPOSITE TRADING AT 8 3/8 DOWN 1/8 THANKS TO THE BUYING WHICH MITEL ASCRIBES TO US INVESTORS THIS ONETIME GLAMOUR STOCK HAS MORE THAN RECOVERED FROM ITS MALAISE OF RECENT YEARS TO COMMAND A BIG BOARD MULTIPLE OF 92 TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS THE FRENZY PERPLEXES ANALYSTS IN CANADA THEY HAVE BEEN SAYING SELL THOUGH OBVIOUSLY NOT LOUDLY ENOUGH TO HEAR SOUTH OF THE BORDER THERE'S NOTHING WRONG WITH THE KANATA ONTARIO COMPANY THEY SAY IT'S SIMPLY THAT THE STOCK PRICE HAS GOTTEN OUT OF HAND MITEL IS FUNDAMENTALLY OVERVALUED ASSERTS DAVID DVORCHIK OF RBC DOMINION SECURITIES IN TORONTO THE BROKERAGE FIRM WOOD GUNDY IN TORONTO ISSUED A SELL RECOMMENDATION IN RECENT DAYS AS DID ANALYST BENN MIKULA OF MIDLAND WALWYN CAPITAL IN MONTREAL WHO ARGUED THAT ALL OF THE GOOD NEWS ABOUT MITEL WAS ALREADY BUILT INTO THE SHARE PRICE IN EFFECT MUCH OF THE RECENT TRADING ACTIVITY IN MITEL AMOUNTS TO PROFITTAKING BY CANADIANS WHO ARE SELLING STOCK TO EAGER US INVESTORS ANALYSTS SAY CANADIAN INVESTORS WERE RESPONSIBLE FOR MOST OF THE INITIAL BUYING OF MITEL AS THE STOCK AROSE FROM A 52WEEK LOW OF 1 1/4 ON THE BIG BOARD BUT THE US INVESTORS HAVE CAUSED THE LAST FEW POINTS OF ADVANCE EVEN MITEL SPOKESWOMAN BONNIE PERRIGARD CONCEDES THE STOCK PRICE HAS GOTTEN A BIT AHEAD OF ITSELF WE'RE A LITTLE BIT SURPRISED IT HAS GONE SO FAR SO FAST MITEL BY THE WAY SAYS THERE'S NOTHING OUTOFTHEORDINARY ABOUT YESTERDAY'S NAMING OF JEANJACQUES CARRIER AS ITS VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER IT SAYS THE DEPARTING CFO JIM ELLIS IS GOING BACK TO TORONTO TO RESUME HIS CONSULTING BUSINESS MITEL COULD ACTUALLY BE A STOCK TO CONSIDER BUYING BUT NOT BEFORE IT DROPS NEARLY ONEFIFTH FROM HERE BACK TO 7 OR BELOW SAYS MARK LAWRENCE AT TORONTO'S LOEWEN ONDAATJE MCCUTCHEON LTD WHICH THE ANALYST SAYS HAS TRADED ABOUT A THIRD OF THE MITEL SHARES THAT CHANGED HANDS IN CANADA THE PAST FEW WEEKS THE STOCK HAS GONE BEYOND FUNDAMENTAL EVALUATIONS SAYS MR LAWRENCE HE PULLED HIS BUY RECOMMENDATION LAST WEEK AND ISSUED A HOLD US INVESTORS JUST SEEM MORE WILLING TO SPECULATE IN HIGHFLYING STOCKS THAN CANADIANS DO WE'RE DEALING WITH ONE OF THE FEW CULTURAL DIFFERENCES THAT EXIST BETWEEN THESE COUNTRIES SAYS ONE CANADIAN ANALYST MAYBE AMERICANS JUST DREAM BIGGER THIS IS A MOMENTUM PLAY RIGHT NOW IT'S NOT A VALUE PLAY SOME INVESTORS APPEAR TO BE OVERREACTING TO MITEL'S STATEMENT THIS MONTH THAT SALES ARE EXPECTED TO RISE FOR THE FISCAL YEAR ENDING IN MARCH COMPARED WITH FISCAL 1993 SALES OF 4234 MILLION CANADIAN DOLLARS US3209 MILLION ANY SIGN THAT A TECHNOLOGY STOCK HAS MOMENTUM HAS BEEN ENOUGH TO FUEL BUYING IN THE US STOCK MARKET LATELY TWICE THIS MONTH DURING ONEDAY PRICE SURGES IN ITS STOCK MITEL HAS STATED IN RESPONSE TO REPORTERS' INQUIRIES THAT THERE WAS NO NEWS TO ACCOUNT FOR THE ACTIVITY SO WHO'S DOING ALL THIS BUYING IN THE US MITEL IS NO LONGER FOLLOWED CLOSELY ON WALL STREET YET SOME SMALLER REGIONAL US BROKERAGE FIRMS ARE SAID TO HAVE LATCHED ON TO MITEL AS A PROMISING HIGHTECH TURNAROUND PLAY SOME BROKERS ARE ALSO SPREADING UNSUBSTANTIATED RUMORS ABOUT A POSSIBLE TAKEOVER ONE OF THE SMALL US BROKERAGE FIRMS SAID TO BE RECOMMENDING MITEL IS WILLIAM K WOODRUFF & CO IN DALLAS WHICH OPERATES OUT OF DIGS ON COLORFULLY NAMED RAMBLER ROAD IN DALLAS THEY'VE DONE A LOT OF THE BUYING SAYS A CANADIAN TRADER WHO SPENT TIME TRACKING DOWN WHERE THE MITEL BUYING IS COMING FROM AT WOODRUFF ANALYST KATE SHARADIN SAYS HER FIRM HAS RECOMMENDED MITEL SINCE JUNE PARTLY AS A CHINA PLAY AS THE COMPANY DOES BUSINESS IN CHINA AND HOPES TO EXPAND THERE SHE SAYS HER FIRM ISN'T BOTHERED BY THE HIGH VALUATION AND THE POTENTIAL FOR MITEL'S SHARES IS TOTALLY OPENENDED LIKE OTHER CANADIAN ANALYSTS MR DVORCHIK OF RBC DOMINION PRAISES MITEL'S NEW MANAGEMENT TEAM WHICH HELPED THE COMPANY REVERSE YEARS OF LOSSES BUT THE LONGTERM GROWTH STRATEGY IS A LITTLE UNCLEAR HE SAYS MR DVORCHIK EXPECTS THE COMPANY TO EARN 17 CANADIAN CENTS A SHARE THIS YEAR AND POSSIBLY 35 CENTS A SHARE IN TWO YEARS COMPARED WITH LAST YEAR'S LOSS OF A PENNY A SHARE 9309280064 930928 CORPORATE FOCUS GM FORESEES DIFFICULTY WITH UAW PATTERN CONTRACT AUTO MAKER'S CHIEF DOESN'T RULE OUT SIGNIFICANT ADDITIONAL JOB CUTS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP CHIEF EXECUTIVE JOHN F SMITH JR SAID THE UNITED AUTO WORKERS NEW BIG THREE PATTERN CONTRACT WILL BE VERY DIFFICULT FOR GM AND DIDN'T RULE OUT SIGNIFICANT ADDITIONAL JOB CUTS GM WHICH CURRENTLY HAS 265000 HOURLY WORKERS HAS A STATED GOAL OF REDUCING ITS WORK FORCE TO 250000 BY THE MID1990S BUT MR SMITH ALSO HAS PLEDGED TO MAKE HIS COMPANY COMPETITIVE WITH FORD MOTOR CO AND TO DO THAT WOULD REQUIRE A WORK FORCE OF 200000 WORKERS OR FEWER ASSUMING UNCHANGED SALES VOLUME I DON'T PUT IT IN TERMS OF NUMBERS SAID MR SMITH WHEN ASKED IF GM PLANNED TO REDUCE ITS WORK FORCE BY ANOTHER 65000 WORKERS WE CLEARLY NEED TO BE MORE PRODUCTIVE THE QUESTION IS CAN THAT BE HANDLED BY ATTRITION AND VOLUME GROWTH AND WE SURE HOPE SO GM CONTINUES TO LOSE MARKET SHARE AND BARRING A SIGNIFICANT SALES SURGE CLEARLY MUST SHED FAR MORE THAN 15000 MORE HOURLY WORKERS TO MATCH FORD'S PRODUCTIVITY LEVELS AND DOING THAT COULD BE EXPENSIVE UNDER THE PATTERN NEGOTIATED BY THE UAW THIS MONTH AT FORD ONE INDUSTRY ANALYST PAINEWEBBER'S STEPHEN GIRSKY SAYS FOLLOWING PENSION INCREASES NEGOTIATED IN THE FORD DEAL WOULD BOOST GM'S UNFUNDED PENSION LIABILITY TO 25 BILLION OR MORE FROM 14 BILLION EARLIER THIS YEAR MOREOVER THE FORD PACT CALLS FOR ADDITIONAL MONEY TO BE PUMPED INTO FUNDS THAT PAY VIRTUALLY FULL WAGES TO IDLED WORKERS GM IS ON TRACK TO SPEND NEARLY ALL OF THE 335 BILLION IT PUT INTO UAW LAYOFF PAY FUNDS IN 1990 AND THE COMPANY'S OUTSIDE DIRECTORS HAVE VOWED THEY WON'T SPEND THAT KIND OF MONEY TO SHRINK THE COMPANY IN THE FUTURE THE FORD AGREEMENT IS VERY DIFFICULT FOR US MR SMITH TOLD REPORTERS AFTER ATTENDING A SPEECH YESTERDAY BY US LABOR SECRETARY ROBERT B REICH TO THE DETROIT ECONOMIC CLUB BUT MR SMITH HAS A PROBLEM EVEN AS HE TRIES TO ARGUE TO THE UAW THAT THE PATTERN CONTRACT IS TOO RICH FOR A WEAKENED GM HE AND HIS COLLEAGUES ARE TRYING TO CONVINCE WALL STREET AND DEBTRATING AGENCIES THAT THE COMPANY IS ON THE MEND GM HAS EARNED 14 BILLION THROUGH JUNE 30 THIS YEAR INCLUDING 8891 MILLION IN THE SECOND QUARTER A DRAMATIC REVERSAL FROM A LOSS OF 870 MILLION IN THE YEARAGO FIRST HALF THE YEARAGO FIGURE INCLUDES A RESTRUCTURING CHARGE OF 749 MILLION BUT DOESN'T INCLUDE A 2087 BILLION CHARGE FOR RETIREE MEDICAL BENEFITS OUR CONTINUING IMPROVEMENT AT GENERAL MOTORS IS DEMONSTRATED BY THE SECONDQUARTER RESULTS MR SMITH SAID IN A JULY STATEMENT BUT MR SMITH CAUTIONED IN THE SAME STATEMENT THAT GM MUST KEEP THE MOMENTUM GOING IN OUR LONG JOURNEY TO REGAIN A POSITION OF TRADITIONAL FINANCIAL STRENGTH BUT UAW LEADERS ARE FOCUSING ON THE PROFITS NOT MR SMITH'S CAVEATS GM IS MAKING MONEY RIGHT NOW SAID MIKE HERMES VICE PRESIDENT OF UAW LOCAL 1999 WHICH REPRESENTS GM'S OKLAHOMA CITY ASSEMBLY PLANT I'M NOT THE RIGHT PERSON TO ASK ABOUT MAKING CONCESSSIONS MR HERMES NOTED THAT THE OKLAHOMA CITY PLANT ALREADY HAS TRIMMED ITS WORK FORCE BY ABOUT 25 IN THE PAST EIGHT YEARS AND YET IS STILL BUILDING THE SAME NUMBER OF CARS WE'D DONE A HELL OF A LOT TO CONTRIBUTE TO GM'S PROFITS AND PRODUCTIVITY MR HERMES SAYS THIS SENTIMENT IS WIDESPREAD IN THE UNION SAID FORMER UAW PRESIDENT DOUGLAS FRASER WHO NEGOTIATED CONCESSIONARY DEALS WITH CHRYSLER CORP FORD AND GM WHEN THE INDUSTRY FACED HARD TIMES IN THE EARLY 1980S GM IS IN THE SPOT THEY'RE IN BECAUSE OF MANAGEMENT BLUNDERS HE ADDED AND WHY SHOULD THE WORKERS PAY FOR THAT BUT ON WALL STREET INVESTORS WANT GM TO STOP DELAYING THE PAINFUL CUTS THAT ARE REQUIRED TO KICK THE COMPANY'S TURNAROUND INTO A HIGHER GEAR INDUSTRY ANALYSTS SAY THEY EXPECT GM WILL HAVE TO PAY A HEAVY PRICE TO SHRINK ITS WORK FORCE BY ANOTHER 65000 PEOPLE OVER THE NEXT THREE YEARS TO PERSUADE UAW LEADERS TO ACCEPT SUCH A MASSIVE RETRENCHMENT GM COULD HAVE TO FINANCE ANOTHER BIG EARLY RETIREMENT PROGRAM IN CONNECTION WITH A NEW LABOR AGREEMENT AND GUARANTEE CONTINUED PAYMENTS TO THOUSANDS OF DISPLACED WORKERS BUT THE POTENTIAL GAINS ARE WORTH THE COST ANALYSTS SAY IF THIS DEAL HAPPENS GM'S LEVEL OF PRODUCTIVITY WILL GET VERY CLOSE TO FORD'S SAYS WERTHEIM SCHRODER ANALYST JOHN CASESA WE'VE KNOWN FOR A LONG TIME THAT GM NEEDS TO GET TO THIS LEVEL OF PRODUCTIVITY ONE BIG QUESTION FOR MR SMITH AND GM'S OUTSIDE DIRECTORS HOWEVER IS WHETHER GM RISKS SADDLING ITSELF WITH EVEN MORE FINANCIAL BURDENS THE COMPANY'S HUGE UNFUNDED PENSION LIABILITY IS THE LARGEST WORRY THE CLINTON ADMINISTRATION IS EXPECTED TO INTRODUCE WITHIN THE NEXT FEW WEEKS LEGISLATION THAT WOULD REQUIRE COMPANIES TO ACCELERATE PAYMENTS TO FULLY FUND THEIR PENSION TRUSTS THE PARTIES IN THE AUTO LABOR TALKS ARE AWARE OF THE PROBLEM AND THE COURSE PUBLIC POLICY IS LIKELY TO TAKE ON UNDERFUNDED PENSION TRUSTS MR REICH SAID IN AN INTERVIEW BEFORE HIS SPEECH TO THE ECONOMIC CLUB OF DETROIT I HAVE TO TRUST BOTH PARTIES TO ACT RESPONSIBLY THIS YEAR GM DISCLOSED ITS UNFUNDED PENSION LIABILITY COULD ZOOM AS HIGH AS 19 BILLION BECAUSE OF DROPS IN INTEREST RATES BETWEEN SUBSEQUENT RATE DROPS AND THE INCREASED PENSIONS IN THE FORD TENTATIVE AGREEMENT MR GIRSKY NOW PUTS THAT LIABILITY AT 25 BILLION AND HE PREDICTS GM WILL HAVE TO TAKE ANOTHER 38 BILLION REDUCTION IN EQUITY AT YEAR END AS A RESULT GM WHICH DECLINED TO COMMENT ON MR GIRSKY'S ESTIMATE SAID IT WOULD UPDATE ITS OWN ESTIMATE ON ITS UNFUNDED PENSION LIABILITY IN ITS THIRDQUARTER FILING WITH REGULATORS GM'S GOT A PENSION AND WORK FORCE THAT'S SET UP FOR A 40 MARKET SHARE COMPANY NOT A 30 MARKET SHARE COMPANY SAID MR GIRSKY AND THAT'S HOLDING THE COMPANY DOWN 9309280063 930928 ED BASS HAS FOUND A WAY TO AVOID SHOPPING IN SUBURBS THE ECCENTRIC BILLIONAIRE USES FAMILY FORTUNE TO REBUILD FORT WORTH'S DOWNTOWN BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL FORT WORTH TEXAS THE TELEPHONE IN ARCHITECT DAVID SCHWARZ'S OFFICE RINGS IT IS ED BASS PEERING DOWN FROM THE HEAVENS THROUGH HIGHPOWERED BINOCULARS WHAT ABOUT THE SERIES OF BRICK COURSES AT THE SEVENTH FLOOR THE BILLIONAIRE BASS BROTHER WANTS TO KNOW SITTING IN HIS 31ST FLOOR OFFICE THREE BLOCKS AWAY DO YOU THINK IT'S THE RIGHT EFFECT MR BASS HAS MORE THAN A PASSING INTEREST IN SUCH MINUTIAE AFTER ALL HE WAS ONCE DOWNTOWN FORT WORTH'S ONLY PERMANENT RESIDENT LIVING IN A HOTEL AND NOW HE HAS PRACTICALLY REINVENTED THE AREA IN HIS OWN IMAGE HE BUILT A MULTISTORY BUILDING TOPPED BY A CACTUSFILLED GEODESIC DOME THAT HOUSES A NIGHTCLUB THEATER AND AN APARTMENT FOR HIMSELF THEN HE ADDED TRENDY SHOPS RESTAURANTS WITH BUSBOYS IN BLACK TSHIRTS AND PURPLE BERETS HIGHCLASS APARTMENTS AND LOFTS WROUGHT FROM DEPRESSIONERA BRICK BUILDINGS AND UNDERGROUND PARKING FOR ALL IN JUST A DECADE HE CREATED A GREENWICH VILLAGELIKE AMBIENCE TO FROLIC IN LURED NEIGHBORS DOWNTOWN TO KEEP HIM COMPANY AND BUILT WHAT SOME CALL A MODEL FOR ALL DEPRESSED DOWNTOWNS I DON'T THINK ANYBODY'S DOING THE FIELD OF DREAMS' THING LIKE HIM SAYS RICHARD BRADLEY PRESIDENT OF THE WASHINGTONBASED INTERNATIONAL DOWNTOWN ASSOCIATION YOU WILL HAVE TO CREATE ANCHORS IN THE DOWNTOWN OF THE FUTURE ED BASS INTUITIVELY UNDERSTOOD THAT ALL THIS IS PRETTY ODD FOR A CITY KNOWN AS COWTOWN WHERE TOURISTS FLOCK TO THE STOCKYARDS AND TO BILLY BOB'S THE WORLD'S LARGEST HONKYTONK BUT THEN MR BASS IS UNIQUE BY MOST STANDARDS THE SECONDOLDEST OF FORT WORTH'S FOUR BASS BROTHERS HE IS BEST KNOWN FOR BANKROLLING THE 150 MILLION BIOSPHERE 2 PROJECT A GIANT HUMAN TERRARIUM IN ARIZONA THAT RELEASED EIGHT INHABITANTS SUNDAY AFTER TWO YEARS UNDER GLASS GENERALLY LAMBASTED BY SCIENTISTS AS MORE OF A THEME PARK THAN A RESEARCH PROJECT BIOSPHERE HAS ENHANCED MR BASS'S REPUTATION AS A WORLDCLASS ECCENTRIC MR BASS WHO DROPPED OUT OF YALE UNIVERSITY'S ARCHITECTURE SCHOOL TO JOIN A COMMUNAL THEATER TROUPE IN SANTA FE NM CALLS HIMSELF AN ECOPRENEUR HE OWNS A RANCH IN AUSTRALIA AND A HOTEL IN KATMANDU NEPAL AND WAS ONCE DUBBED A SPACE COWBOY BY THE VILLAGE VOICE A WEEKLY NEWSPAPER IN NEW YORK BUT PEOPLE HERE SAY THE 48YEAROLD BACHELOR IS REALLY MORE ECLECTIC THAN ECCENTRIC JUST AS COMFORTABLE AT THE CITY'S ANNUAL RODEO AS HE IS IN HIS JAZZ CLUB THE CARAVAN OF DREAMS ED'S A HIPPIE AN OLDER HIPPIE SAYS BOB BERNOSKI A COMMERCIALBAKERY DESIGNER WHO RECENTLY LEFT A HOME IN THE SUBURBS FOR ONE OF THE DOWNTOWN LOFTS HE WILLED THAT THIS HAPPEN AND IT DID ONE OF HIS GOALS THE GRAYHAIRED MR BASS SAYS IS TO UNDO PAST URBANPLANNING WRONGS SHOPPING MALLS SEPARATE PEOPLE HE SAYS BUT THIS DOWNTOWN AREA WILL BRING THEM TOGETHER WE'RE OFFERING A DIFFERENT EXPERIENCE HE SAYS NO DETAIL IS TOO TINY TO ESCAPE MR BASS HE POINTS OUT THE STEER HEADS CARVED INTO THE FACADE OF SUNDANCE WEST HIS LSHAPED APARTMENT AND MOVIETHEATER BUILDING WHICH INCLUDES HIS TWOSTORY ATRIUM HOME HE NOTES THE PLASTER COWS ATOP THE COLUMNS INSIDE HIS APARTMENT BUILDING COPIED FROM A DEPRESSIONERA POST OFFICE AND WHEN HE STEPS INSIDE THE ARTDECO CINEMA A MISSING ARMREST CUP HOLDER CATCHES HIS EYE CERTAINLY MR BASS HAS A COMPELLING ECONOMIC INCENTIVE FOR ALL THIS ATTENTION IN A CITY SUFFERING IN RECENT YEARS FROM A REALESTATE COLLAPSE DEFENSE CUTS AND RECESSION THE BASS FAMILY OWNS DOWNTOWN REAL ESTATE VALUED AT SEVERAL HUNDRED MILLION DOLLARS TWO OFFICE TOWERS THE 500ROOM WORTHINGTON HOTEL AND SUNDANCE SQUARE A TWOSQUAREBLOCK RETAIL DEVELOPMENT AND THE DEVELOPMENT WE DO OFFERS US AN ATTRACTIVE RETURN HE SAYS BUT THE PROJECT IS ALSO PERSONAL GROWING OUT OF A FONDNESS FOR THE NEIGHBORHOOD HE FREQUENTED IN HIS YOUTH HIS GREAT UNCLE SID RICHARDSON WHO BUILT THE FAMILY FORTUNE HAD APARTMENTS IN THE AREA I INTENSELY LOVE URBAN AREAS OR BEING SOMEWHERE IN THE BOONIES HE SAYS INBETWEEN JUST DOES NOT HAVE AN APPEAL SO WHEN HE SETTLED HERE 10 YEARS AGO MR BASS TOOK THE REINS OF THE FAMILY'S DOWNTOWN HOLDINGS AND STARTED POPPING UP AT CITY PLANNING MEETINGS OR VISIONING SESSIONS AS THEY CALL THEM HERE TO PUSH FOR DOWNTOWN DEVELOPMENT MARKETING STUDIES DISMISSED THE IDEA AS TOO EXPENSIVE AND RISKY AS RECENTLY AS 1986 ONLY HALF OF SUNDANCE SQUARE'S RETAIL SPACE AND 36 OF OFFICE SPACE WERE OCCUPIED MR BASS PLUNGED AHEAD ANYWAY HE LURED FOUR THEATER COMPANIES TO THE AREA AND WITH HIS THREE BROTHERS SANK 30 MILLION INTO SUNDANCE WEST NOW MR BASS'S HABITAT HAS BECOME A BOOMING SUCCESS LAST YEAR ITS FIRST YEAR THE CINEMA RUN BY AMC ENTERTAINMENT INC BECAME FORT WORTH'S TOPGROSSING MOVIE HOUSE THE LUXURY APARTMENTS IN SUNDANCE WEST ARE COMPLETELY LEASED AND THE LOFTS IN A NEARBY BUILDING ARE 88 FILLED OFFICESPACE ABSORPTION IN TARRANT COUNTY IS NOW AT ITS STRONGEST PACE IN THREE YEARS AND COUNTER TO RECENT NATIONAL TRENDS NEARLY HALF THE GROWTH IS IN FORT WORTH'S DOWNTOWN ACCORDING TO M/PF RESEARCH INC FOR THE 200 OR SO RESIDENTS OF MR BASS'S BUILDINGS A PRIVATE SECURITY FORCE OUTNUMBERS THE FORT WORTH POLICE IN THAT PRECINCT AND STATISTICS HAVE SHOWN THE NEIGHBORHOOD TO BE AMONG THE SAFEST IN THE CITY ROOM SERVICE CAN BE ORDERED FROM THE NEARBY WORTHINGTON HOTEL A CONCIERGESEEN RECENTLY UNLOADING GROCERY SACKS FROM A BENTLEY IS AVAILABLE IT'S LIKE BEING ON VACATION ALL THE TIME SAYS RANDY GIDEON PRESIDENT OF AN ENGINEERING FIRM WHO MOVED FROM SUNDANCE WEST TO THE LOFTS WHEN THEY OPENED EARLIER THIS YEAR MUCH CREDIT GOES TO MR BASS HIS FINGERPRINTS ARE ON ONE THING AFTER ANOTHER HE'S THE LEAD GUY NOW SAYS FORMER MAYOR BOB BOLEN WHEN HE BUILT THE CARAVAN OF DREAMS EMPLOYEES SAY BLUEPRINTS EVOLVED WHILE CONSTRUCTION CONTINUED AND HE OFTEN CHANGED HIS MIND ABOUT DECOR AND DESIGN AFTER ROOMS HAD BEEN FINISHED WALLS CHANGED ROOMS CHANGED FABRIC CHANGED FLOORS CHANGED SAYS STEVE CHOJNOWSKI CONSTRUCTION SUPERINTENDENT FOR THE PROJECT SOMETIMES I JACKHAMMERED HOLES IN CONCRETE AFTER IT HAD JUST BEEN POURED SO FAR THE PROJECT HAS SHOWN AN OPERATING PROFIT BUT ONLY BECAUSE THERE ARE NO MORTGAGES SAYS WILLIAM BOECKER MANAGER OF MR BASS'S PROJECT HE UNDERSTOOD IT WAS NOT GOING TO BE EASY MR BOECKER SAYS BUT NOT ONLY FOR SUNDANCE BUT ALSO FOR DOWNTOWN HE WANTED TO GO FORWARD AND TAKE SOME RISKS UNLIKE HIS EXCEEDINGLY PRIVATE AND SECURITYCONSCIOUS BROTHERS MR BASS IS FREQUENTLY SPOTTED ROAMING AROUND HIS CREATION CHATTING WITH RETAILERS DINING WITH FRIENDS LISTENING TO JAZZ SLIPPING INTO COWBOY BOOTS WITH A PRICKLY PEAR DESIGN AND KICKING UP HIS HEELS WITH HIS GIRLFRIEND HAIRDRESSER DONNA ROGERS AFTER ALL HE HAS WROUGHT MR BASS STILL ISN'T READY TO REST HE IS DRAWING UP DESIGNS FOR A 22STORY EDIFICE WITH 78 CONDOMINIUMS AND PLANS OTHER BUILDINGS FOR RETAIL SPACE HE ALSO HAS ASSEMBLED A POWERFUL LOCAL GROUP TO FINANCE A 50 MILLION 1800SEAT PERFORMINGARTS CENTER THAT VOTERS REJECTED IN 1990 AND THE CITY'S PLANS CALL FOR A DOWNTOWN MARKETPLACE AS WELL AS AN ARTISTS' COMPOUND AND AN ENHANCED THEATER DISTRICTALL REFLECTING MR BASS' INTERESTS HE IS PLEASED WE ARE NOW A COMPLETE ORGANISM IN OUR DOWNTOWN HE SAYS BEATIFICALLY IT COMPLETES THIS PERCEPTION THIS FEELING THAT IT'S A REAL CITY AND PEOPLE LOVE REAL CITIES THEY WORK 9309280062 930928 FUJITSU IS SLASHING ITS RESEARCH SPENDING 12 THIS FISCAL YEAR TOKYO SLUMPING FUJITSU LTD SAID IT WILL SACRIFICE ANOTHER JAPAN INC SACRED COW AND SHARPLY CUT SPENDING FOR RESEARCH AND DEVELOPMENT IT IS THE FIRST SUCH MOVE IN A DECADE FOR JAPAN'S NO 1 COMPUTER MAKER AND IS THE CLEAREST SIGN YET THAT JAPAN'S PROLONGED DOWNTURN IS FORCING COMPANIES TO CUT BONE AS WELL AS FAT FROM THEIR SPENDING OTHER COMPANIES MAY FOLLOW SUIT WHILE MAJOR JAPANESE CORPORATIONS HAVE SLASHED CAPITAL SPENDING OVER THE PAST YEAR MOST HAVE MAINTAINED HEFTY R&D BUDGETS JAPANESE MANUFACTURERS OFTEN POINT OUT THAT UNLIKE US COMPETITORS THEY TRY TO PRESERVE RESEARCH SPENDING EVEN IN BAD TIMES BUT FUJITSU HAD ITS FIRST PRETAX LOSS EVER IN THE FISCAL YEAR ENDED MARCH 31 AND WHILE THE COMPANY HAD FORECAST A PRETAX PROFIT OF 30 BILLION YEN 283 MILLION FOR THE CURRENT FISCAL YEAR A SPOKESMAN SAID YESTERDAY THAT THE NUMBER NOW APPEARS DIFFICULT TO REACH THE SPOKESMAN SAID FUJITSU WILL CUT R&D SPENDING THIS FISCAL YEAR BY 12 TO 280 BILLION YEN FROM 3193 BILLION YEN THE CUTS WILL COME MAINLY IN SEMICONDUCTORS AND LARGESCALE COMPUTERS THE COMPANY WILL ALSO REORIENT ITS RESEARCH SPENDING AND FOCUS MORE ON HIGHGROWTH AREAS SUCH AS OPTICALFIBER COMMUNICATIONS AND NEXTGENERATION SEMICONDUCTORS FUJITSU IS ALSO CUTTING R&D SPENDING AS A PERCENTAGE OF SALES TO 127 THIS YEAR FROM 133 LAST YEAR ALTOGETHER FUJITSU PLANS TO CUT SPENDING BY 80 BILLION YEN EARLIER THIS YEAR FUJITSU BUDGETED A SMALLER REDUCTION IN R&D SPENDING BUT WIDENED THE CUT WHEN BUSINESS CONDITIONS WORSENED 9309280061 930928 US AIRLINES TO FACE A SHORTAGE OF PILOTS MECHANICS PANEL SAYS WASHINGTON US AIRLINES WHICH NOW HAVE A GLUT OF PILOTS WITHIN TWO YEARS WILL FACE A SHORTAGE OF TOPQUALITY PILOTS AND MAINTENANCE TECHNICIANS ACCORDING TO A PRESIDENTIAL COMMISSION IN A REPORT THE COMMISSION SAID THE MILITARY WHICH HELPED TRAIN 80 OF CURRENT AIRLINE PILOTS IS SENDING FEWER PEOPLE THROUGH ITS FLIGHT PROGRAMS AND IS FORCING ITS PILOTS TO SERVE LONGER ALSO SOME CIVILIAN FLIGHT SCHOOLS ARE IN DANGER OF CLOSING BECAUSE OF THE BLEAK JOB MARKET THE PANEL PREDICTED NO SHORTAGE OF PILOTS WHO MEET MIMINUM FEDERAL REQUIREMENTS BUT SAID PILOTS AND MAINTENANCE TECHNICIANS MAY HAVE FEWER HOURS OF TRAINING AND LESS PROFICIENCY WITH NEW AIRCRAFT TECHNOLOGY THE COMMISSION CALLED FOR THE TRANSPORTATION DEPARTMENT TO CREATE A NATIONAL CIVILIAN PILOTTRAINING PROGRAM WITH LOWINTEREST LOANS FOR PILOT STUDENTS THE REPORT ALSO RECOMMENDED PRODUCTLIABILITY REFORM TO ALLOW TRAINING AIRCRAFT TO BE BUILT AT A REASONABLE COST THE PANEL WHICH INCLUDED REPRESENTATIVES OF AIRLINES UNIONS AND FLIGHT SCHOOLS WAS APPOINTED LAST YEAR TO STUDY THE SUPPLY OF PILOTS AND TECHNICIANS 9309280060 930928 GENTA RAISES 22 MILLION SAN DIEGO GENTA INC SAID IT RAISED PROCEEDS AFTER EXPENSES OF ABOUT 22 MILLION THROUGH A PRIVATE PLACEMENT OF 477540 UNITS AT 50 A UNIT THE DRUG RESEARCH COMPANY SAID EACH UNIT CONSISTS OF ONE SHARE OF A NEW SERIES CONVERTIBLE PREFERRED STOCK AND A WARRANT TO ACQUIRE ONE SHARE OF COMMON STOCK THE PREFERRED STOCK IS CONVERTIBLE INTO 26 MILLION SHARES OF GENTA'S COMMON STOCK AT A CONVERSION PRICE OF 9 A SHARE SUBJECT TO ADJUSTMENT GENTA HAS 136 MILLION SHARES OUTSTANDING THE STOCK PAYS DIVIDENDS IN CASH OR COMMON STOCK OR A COMBINATION THE COMPANY MAY REDEEM THE STOCK UNDER CERTAIN CIRCUMSTANCES AND IS REQUIRED TO DO SO AFTER THREE YEARS AT 50 A SHARE PLUS ACCRUED AND UNPAID DIVIDENDS THE WARRANTS WILL BE EXERCISABLE FOR FIVE YEARS AT A PRICE EQUAL TO 1050 A COMMON SHARE SUBJECT TO CERTAIN ADJUSTMENTS GENT SAID THE PRIVATE PLACEMENT DIDN'T DILUTE THE STAKE OF EXISTING SHAREHOLDERS AS MUCH AS A MORE CONVENTIONAL STOCK OFFERING OF COMMON STOCK 9309280059 930928 BUSINESS BRIEF IMO INDUSTRIES INC FIRM SAYS UTILITY LOST BID TO REOPEN PORTIONS OF SUIT IMO INDUSTRIES INC SAID A FEDERAL APPEALS COURT REJECTED AN ATTEMPT BY LONG ISLAND LIGHTING CO TO REOPEN PORTIONS OF A LAWSUIT THAT A LOWER COURT DISMISSED LAST YEAR LONG ISLAND LIGHTING WAS AWARDED 108 MILLION BY A FEDERAL COURT IN A 1985 LAWSUIT RELATED TO IMO'S SALE OF DIESEL GENERATORS TO THE UTILITY BUT THE COURT HAD DISMISSED OTHER LONG ISLAND LIGHTING CLAIMS INCLUDING ALLEGATIONS OF FRAUD AND RACKETEERING IMO BASED IN LAWRENCEVILLE NJ SAID IT PLANS TO REMOVE FROM ITS FINANCIAL STATEMENTS REFERENCES TO THE LAWSUIT AS A CONTINGENT LIABILITY ASSUMING THAT THE APPEALS PROCESS WILL NOT BE CARRIED FURTHER A SPOKESWOMAN FOR LONG ISLAND LIGHTING BASED IN HICKSVILLE NY DECLINED TO COMMENT 9309280058 930928 BUSINESS BRIEF HICKS MUSE & CO INVESTMENT GROUP TO FINANCE PURCHASE OF 2 RADIO STATIONS HICKS MUSE & CO SAID IT SIGNED A LETTER OF INTENT UNDER WHICH IT WILL FINANCE THE ACQUISITION BY NEWLY FORMED CHANCELLOR COMMUNICATIONS CORP OF TWO SACRAMENTO CALIF RADIO STATIONS FROM A UNIT OF WESTINGHOUSE ELECTRIC CORP PITTSBURGH FOR ABOUT 48 MILLION TOM HICKS CHIEF EXECUTIVE OFFICER OF DALLASBASED HICKS MUSE SAID HE EXPECTS THE ACQUISITIONS TO BE THE FIRST OF MANY THROUGHOUT THE US CHANCELLOR WAS FORMED THIS MONTH BY HICKS MUSE AS ONE OF TWO CORPORATIONS FINANCED BY THE CLOSELY HELD INVESTMENT GROUP TO ACQUIRE RADIO PROPERTIES THE SACRAMENTO STATIONS ARE KFBKAM A NEWS/TALK STATION AND KGBYFM WHICH PLAYS CONTEMPORARY MUSIC THE COMPANY SAID 9309280057 930928 BUSINESS BRIEF OSHKOSH B'GOSH INC LETTER OF INTENT IS SIGNED TO ACQUIRE RIO SPORTSWEAR OSHKOSH B'GOSH INC OSHKOSH WIS SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE RIO SPORTSWEAR A WOMEN'S JEANS FIRM WITH 1992 SALES OF ABOUT 150 MILLION THE DEAL IS SUBJECT TO ADDITIONAL DUE DILIGENCE AND THE SIGNING OF A DEFINITIVE PURCHASE AGREEMENT OSHKOSH SAID TERMS WEREN'T DISCLOSED RIO MARKETS PRODUCTS UNDER THE RIO BRAND AS WELL AS SELLING PRODUCTS UNDER LICENSE FROM BILL BLASS AND LA GEAR AND DISTRIBUTING PRODUCTS MADE BY RIFLE OF ITALY RIO WILL BE OPERATED AS AN OSHKOSH B'GOSH UNIT OSHKOSH SAID IT SAID RIO'S PRESIDENT AND CHIEF EXECUTIVE ARNOLD SIMON WILL CONTINUE IN THOSE POSTS 9309280056 930928 INTERNATIONAL BRIEF MANNESMANN AG STOCK ISSUE PLANNED TO INVEST IN TELECOMMUNICATIONS UNIT MANNESMANN AG A GERMAN INDUSTRIAL AND ENGINEERING CONGLOMERATE SAID IT WILL ISSUE NEW SHARES NEXT MONTH TO RAISE CAPITAL TO INVEST IN ITS TELECOMMUNICATIONS DIVISION AND HELP RESTRUCTURE ITS HEAVYINDUSTRY OPERATIONS THE COMPANY WILL ISSUE ONE NEW SHARE FOR EVERY EIGHT SHAREHOLDERS ALREADY HOLD IT PLANS TO ISSUE 4037000 NEW SHARES IN THE EXERCISE THE PRICE OF THE NEW SHARES WILL BE ANNOUNCED CLOSER TO THE ISSUE DATE EFFORTS TO CUT COSTS WILL BURDEN RESULTS THIS YEAR BUT WILL LEAD TO A SIGNIFICANTLY LOWER BREAKEVEN POINT NEXT YEAR AND A CLEAR PROFIT IMPROVEMENT THE COMPANY SAID IN A STATEMENT YESTERDAY ONE DAY AFTER DER SPIEGEL NEWS MAGAZINE REPORTED THAT MANNESMANN WILL POST AN OPERATING LOSS OF ONE BILLION MARKS 6013 MILLION IN THE CURRENT BUSINESS YEAR MANNESMANN DECLINED TO COMMENT ON THE ARTICLE 9309280055 930928 BUSINESS BRIEF PLAYBOY ENTERPRISES INC ACCOUNTING BENEFIT CREATES FISCAL FIRSTQUARTER PROFIT PLAYBOY ENTERPRISES INC SAID IT EXPECTS A SIZABLE OPERATING LOSS AS WELL AS A RESTRUCTURING CHARGE FOR ITS FISCAL FIRST QUARTER ENDING SEPT 30 BUT NOTED THAT AN ACCOUNTING BENEFIT WILL PUT NET RESULTS SLIGHTLY IN THE BLACK THE PUBLISHING AND ENTERTAINMENT CONCERN SAID AD PAGES WILL BE DOWN 3 FROM THE LESSTHANROBUST YEARAGO LEVEL AND THAT NEWSSTAND SALES FOR ITS PLAYBOY MAGAZINE HAVEN'T INCREASED PLAYBOY SAID IT EXPECTS AN OPERATING LOSS OF ABOUT 45 MILLION AND A RESTRUCTURING CHARGE OF 23 MILLION WHICH INCLUDES THE ELIMINATION OF ABOUT 60 JOBS OR ABOUT 10 OF THE WORK FORCE ADOPTION OF AN ACCOUNTING STANDARD WILL GIVE IT A ONETIME BENEFIT OF 75 MILLION YIELDING NET INCOME OF ABOUT 200000 A YEAR AGO PLAYBOY HAD A LOSS OF 1 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 481 MILLION 9309280054 930928 BUSINESS BRIEF CSX CORP UNIT TO PAY 3 MILLION FINE IN POLLUTIONCASE SETTLEMENT CSX TRANSPORTATION INC WILL PAY A 3 MILLION FINE FOR VIOLATIONS OF THE CLEAN WATER ACT IN ADDITION THE RAILROAD COMPANY A UNIT OF CSX CORP BASED IN RICHMOND VA AGREED AS PART OF THE SETTLEMENT TO SPEND 41 MILLION TO CONDUCT ENVIRONMENTAL AUDITS AT ITS OWN FACILITIES AND TO DEVELOP FOR THE ENTIRE RAILROAD INDUSTRY A PERSONNEL TRAINING PROGRAM AND MANUAL ON HOW TO MANAGE STORMWATER DISCHARGE THE LAWSUIT WHICH WAS FILED BY THE JUSTICE DEPARTMENT AND THE ENVIRONMENTAL PROTECTION AGENCY IN THE LATTER DAYS OF THE BUSH ADMINISTRATION ALLEGED THAT CSX WAS ALLOWING POLLUTED WATER TO FLOW INTO THE SOIL AT SIX RAILROAD YARDS USED TO REFUEL LOCOMOTIVES AND CLEAN RAILROAD CARS THE RAILROAD YARDS ARE IN ALABAMA FLORIDA GEORGIA KENTUCKY SOUTH CAROLINA AND TENNESSEE IN MOST INSTANCES THE POLLUTED WATER FLOWED INTO STORM SEWERS ACCORDING TO THE JUSTICE DEPARTMENT FIVE OF THE SIX SITES HAVE SINCE BEEN BROUGHT INTO COMPLIANCE WITH THE CLEAN WATER ACT THE SIXTH SITE AT WINSTON YARD IN LAKELAND FLA WILL BE BROUGHT INTO COMPLIANCE WITHIN SIX MONTHS UNDER THE TERMS OF THE CONSENT DECREE DONNA ROHRER A CSX SPOKESWOMAN SAID ALL OUR OTHER ACTIVE FACILITIES ARE IN COMPLIANCE WITH THE CLEAN WATER ACT WE BELIEVE WE ARE SECOND TO NONE IN OUR INDUSTRY IN OUR ENVIRONMENTAL COMPLIANCE 9309280053 930928 INTERNATIONAL BRIEF PROCORDIA AB FIRSTHALF PROFIT CLIMBED 19 ON CURRENCY RATE GAINS SWEDISH FOOD AND DRUG GROUP PROCORDIA AB REPORTED THAT PRETAX PROFIT IN THE FIRST HALF ROSE 19 TO 261 BILLION KRONOR 325 MILLION FROM 220 BILLION KRONOR A YEAR EARLIER LARGELY BECAUSE OF GAINS ON CURRENCY EXCHANGE RATES SALES ROSE 92 TO 2156 BILLION KRONOR IN JUNE PROCORDIA'S MAJOR OWNER AUTOMOTIVE AND INDUSTRIAL GROUP AB VOLVO AGREED TO DIVIDE THE GROUP INTO TWO PARTS A PUBLICLY LISTED PHARMACEUTICAL AND BIOTECHNOLOGY COMPANY CALLED PHARMACIA AND A CONSUMERPRODUCTS COMPANY CALLED BRANDED CONSUMER PRODUCTS THROUGH A COMPLICATED SERIES OF TRANSACTIONS VOLVO WILL RETAIN OWNERSHIP OF BCP TO PREPARE FOR ITS FUTURE STRUCTURE PROCORDIA HAS SWITCHED TO A FISCAL YEAR RUNNING FROM JULY 1 THROUGH JUNE 30 THE LATEST REPORT IS CONSIDERED A YEAREND REPORT FOR FISCAL 1993 BUT IT'S LIMITED TO JAN 1 TO JUNE 30 1993 9309280052 930928 LAW JUSTICES TO RULE ON SEX BIAS AND GARBAGE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TERESA HARRIS'S BOSS BARRAGED HER WITH SEXUALLY RELATED COMMENTS HE SUGGESTED THAT SHE WON NEW BUSINESS BY PROMISING SEXUAL FAVORS HE PROPOSED THAT HE AND MS HARRIS GO TO A NEARBY MOTEL TO NEGOTIATE HER RAISE MS HARRIS CHARGED IN A LAWSUIT THAT THIS BEHAVIOR FORCED HER TO QUIT HER SUPERVISOR'S JOB AT FORKLIFT SYSTEMS INC A FEDERAL TRIAL JUDGE AGREED THAT THE BOSS CHARLES HARDY PRESIDENT OF THE NASHVILLE TENN COMPANY WAS VULGAR BUT THE JUDGE DISMISSED THE SEXDISCRIMINATION SUIT RULING THAT MS HARRIS HADN'T PROVED THAT SHE SUFFERED A SERIOUS PSYCHOLOGICAL INJURY A FEDERAL APPEALS COURT IN CINCINNATI AFFIRMED THE DECISION NOW THE SUPREME COURT WILL USE THE HARRIS CASE TO DECIDE THE TYPE OF PROOF A WOMAN NEEDS TO WIN A SEXBIAS SUIT ALLEGING A HOSTILE WORKPLACE IN ITS 199394 TERM WHICH BEGINS MONDAY THE HIGH COURT WILL ALSO ADDRESS OTHER QUESTIONS AFFECTING WORKERS CONSUMERS AND BUSINESS INCLUDING WHETHER CITIES THAT BURN GARBAGE WILL SEE THEIR INCINERATOR INVESTMENTS GO UP IN SMOKE AND WHEN FINANCIAL ADVISERS SHOULD BE HELD LIABLE FOR RECKLESS BEHAVIOR IN STOCK DEALS GENDERBIAS CASES WILL BE AMONG THE MOST CLOSELY WATCHED DISPUTES ON THE COURT'S DOCKET IN PART BECAUSE THEY COULD PROVIDE AN EARLY GLIMPSE OF THE INFLUENCE OF THE NEWEST JUSTICE RUTH BADER GINSBURG JUSTICE GINSBURG WAS A LEADING FEMINIST LITIGATOR BEFORE BEING NAMED TO THE FEDERAL BENCH IN 1980 BUT LIBERALS WHO EXPECT HER TO BLAZE NEW PATHS IMMEDIATELY OR TO SIDE REFLEXIVELY WITH WHAT ARE ASSERTED TO BE WOMEN'S INTERESTS MAY BE DISAPPOINTED SHE SKETCHED A SELFPORTRAIT DURING HER CONFIRMATION HEARINGS IN JULY OF A FEMINIST WITH STRONG PERSONAL BELIEFS BUT A CAUTIOUS JUDICIAL METHOD AND SHE HAS A 13YEAR RECORD OF CAREFUL CASEBYCASE JUDGING ON THE FEDERAL APPEALS COURT AN EARLY OPPORTUNITY FOR JUSTICE GINSBURG TO INFLUENCE HER COLLEAGUES' THINKING ON GENDER RELATIONS WILL COME IN THE CASE CONCERNING MS HARRIS AND FORKLIFT SYSTEMS WHICH WILL BE ARGUED OCT 13 THE SUPREME COURT RULED IN 1986 THAT SEXUAL HARASSMENT SHORT OF ACTUAL ASSAULT CAN BE PERVASIVE ENOUGH TO HOLD EMPLOYERS LIABLE FOR VIOLATING THE FEDERAL ANTIBIAS LAW KNOWN AS TITLE VII BUT BEYOND OFFERING SOME GENERAL PLATITUDES THE JUSTICES DIDN'T EXPLAIN WHAT WOULD CONSTITUTE AN IMPERMISSIBLY HOSTILE OFFICE OR SHOP FLOOR IN ITS SUPREME COURT BRIEF FORKLIFT SYSTEMS DOESN'T DEFEND ITSELF AGAINST THE PSYCHOLOGICALINJURY STANDARD INSTEAD THE COMPANY CONTENDS THAT THE TEST SHOULD BE WHETHER THE HARASSMENT WOULD HAVE INTERFERED WITH A REASONABLE WOMAN'S WORK PERFORMANCE IT SAYS MR HARDY'S COMMENTS DIDN'T GO THAT FAR HARRIS VS FORKLIFT SYSTEMS INC A SEPARATE CASE RAISES THE QUESTION OF WHETHER THOUSANDS OF WOMEN AND MINORITIES WHOSE JOBBIAS SUITS WERE PENDING WHEN A 1991 CIVIL RIGHTS STATUTE WAS ENACTED SHOULD HAVE THE ADDITIONAL PROTECTION OFFERED BY THE NEW LAW FOR WOMEN THE LEGISLATION PROVIDES A CHANCE TO WIN COMPENSATORY AND PUNITIVE DAMAGES FOR SEX BIAS PREVIOUSLY ONLY BACK PAY WAS AVAILABLE COMPENSATORY DAMAGES COVER SUCH AREAS AS EMOTIONAL SUFFERING PUNITIVE DAMAGES PUNISH WRONGDOING WHILE THE STAKES ARE HIGH THE CASE WILL TURN ON A TECHNICAL LEGAL ISSUE WHETHER LEGISLATION ORDINARILY OUGHT TO APPLY FROM THE DATE OF ENACTMENT FORWARD OR RETROACTIVELY TO EVENTS THAT OCCURRED BEFORE ENACTMENT CONGRESS OBFUSCATED IN THE 1991 LAW FORCING THE JUDICIARY TO MAKE THE TOUGH CALL LANDGRAF VS USI FILM PRODUCTS RIVERS VS ROADWAY EXPRESS INC A THIRD SEXBIAS CASE AROSE FROM A PATERNITY DISPUTE BUT IT COULD HAVE IMPLICATIONS FOR ANY SORT OF LITIGATION INCLUDING BUSINESS OR EMPLOYMENT SUITS THE QUESTION IS WHETHER POTENTIAL JURORS MAY BE REMOVED BASED SOLELY ON THEIR GENDER LITIGANTS MAY STRIKE POSSIBLE JURORS BASED ON ARTICULATED REASONS SUCH AS CONFLICT OF INTEREST EACH SIDE CAN ALSO STRIKE A FIXED NUMBER OF JURORS WITHOUT EXPLANATION ALTHOUGH THE SUPREME COURT IN A SERIES OF DECISIONS SINCE 1986 HAS BARRED ELIMINATING JURORS BASED ON RACE ALONE NOW THE JUSTICES WILL DECIDE WHETHER TO EXTEND THE PROHIBITION TO GENDER IN THE CASE BEFORE THE JUSTICES LAWYERS FOR THE STATE OF ALABAMA ACTING ON BEHALF OF THE MOTHER OF A YOUNG CHILD ELIMINATED ALL MEN FROM THE JURY ON THE ASSUMPTION THAT MALE JURORS WOULD BE MORE SYMPATHETIC TO THE ALLEGED FATHER SOME FEMINISTS MIGHT APPLAUD THE STRATEGY ARGUING THAT WOMEN BETTER UNDERSTAND THE PLIGHT OF AN ABANDONED MOTHER BUT IT WAS JUST THIS SORT OF STEREOTYPING THAT JUSTICE GINSBURG ATTACKED AS A LAWYER IN THE 1970S SOME OF HER VICTORIES BEFORE THE SUPREME COURT IN FACT ALMOST CERTAINLY WILL BE CITED IN THE HIGH COURT'S RULING WHICH IS EXPECTED TO BAR GENDERBASED JURY STRIKES JEB VS WHAT MAKES THE ENVIRONMENT OF AN OFFICE OR SHOP FLOOR SO HOSTILE THAT A WOMAN WHO HAS NEVER BEEN TOUCHED MAY SUE FOR SEXUAL HARASSMENT ALL MALE JURORS FROM THE PANEL SHOULD THE ASH FROM INCINERATED MUNICIPAL TRASH BE CONSIDERED HAZARDOUS WASTE DO LAWS BARRING THE EXPORT OF GARBAGE FROM LOCALITIES POSE AN UNCONSTITUTIONAL OBSTACLE TO INTERSTATE COMMERCE IS IT ENOUGH FOR AN INVESTOR TO SHOW THAT A DEFENDANT VIOLATED FEDERAL SECURITIESFRAUD LAW BY ACTING RECKLESSLY EVEN IF THE BEHAVIOR WASN'T PURPOSELY ILLEGAL A PAIR OF CASES SHOW THERE'S BIG MONEY RIDING ON GARBAGE IN ONE THE CITY OF CHICAGO IS APPEALING A LOWERCOURT RULING THAT ASH LEFT OVER AFTER INCINERATING MUNICIPAL TRASH MUST BE TREATED AS HAZARDOUS WASTE SPECIAL FEDERAL RULES FOR HANDLING HAZARDOUS WASTE WOULD VASTLY INCREASE THE COST OF DISPOSING OF MUNICIPAL ASH IF FORCED TO COMPLY WITH THEM MANY CITIES' GARBAGEBURNING FACILITIES WOULD BECOME PROHIBITIVELY EXPENSIVE TO OPERATE IN THE OTHER GARBAGERELATED CASE THE JUSTICES MUST RULE ON A CHALLENGE TO MUNICIPAL LAWS THAT TRY TO KEEP GARBAGE WITHIN A LOCALITY DESPITE THE PERCEPTION THAT THERE'S A NATIONAL GARBAGE CRISIS MANY REGIONS ACTUALLY HAVE TOO MUCH CAPACITY FOR GARBAGE DISPOSAL THE ANTIEXPORT LAWS WERE PASSED BY CITIES AND COUNTIES TO ENSURE A STEADY FLOW OF TRASH TO NEW DISPOSAL FACILITIES IN WHICH THEY HAVE A FINANCIAL INTEREST IN THE PAST SOME STATES HAVE TRIED TO USE SPECIAL TAXES AND OTHER METHODS TO KEEP WASTEDISPOSAL COMPANIES FROM IMPORTING GARBAGE FROM ELSEWHERE THE SUPREME COURT HAS STRUCK DOWN SUCH TACTICS AS UNCONSTITUTIONAL INTERFERENCE WITH INTERSTATE COMMERCE IF THE SUPREME COURT BARS LOCALITIES FROM USING ANTIEXPORT LAWS TO PROP UP UNDERUSED TRASH FACILITIES PRIVATE GARBAGETREATMENT CONCERNS WOULD BENEFIT BUT THE MARKET FOR GARBAGE BONDS WOULD TAKE ANOTHER HUGE HIT CARBONE INC VS CLARKSTOWN NY IN A CASE THAT COULD HAVE BIG RAMIFICATIONS FOR FINANCIAL ADVISERS AND INVESTORS THE COURT WILL CLARIFY WHAT TYPE OF PROOF A PLAINTIFF NEEDS TO PREVAIL IN A SUIT CHARGING SOMEONE WITH PLAYING A SECONDARY ROLE IN A SECURITIESFRAUD SCHEME SPECIFICALLY THE JUSTICES AGREED TO DECIDE WHETHER IT IS SUFFICIENT FOR AN INVESTOR TO SHOW THAT A DEFENDANT VIOLATED SECURITIESFRAUD LAW BY ACTING RECKLESSLY EVEN IF THE BEHAVIOR WASN'T PURPOSELY ILLEGAL THE HIGH COURT WILL REVIEW A RULING THAT SAID A DENVER BANK'S FAILURE TO INVESTIGATE A QUESTIONABLE REALESTATE APPRAISAL MADE IT LIABLE IN A SUIT FILED BY INVESTORS WHO BOUGHT BONDS SECURED BY THE PROPERTY THE BANK SERVED AS A TRUSTEE FOR THE BOND OFFERING CENTRAL BANK OF DENVER NA VS FIRST INTERSTATE BANK OF DENVER NA 9309280051 930928 INTERNATIONAL BRIEF PHILIP MORRIS COS US CONCERN BUYS STAKE OF 49 IN CIGARETTE MAKER PHILIP MORRIS COS IS EXPANDING ITS GROWING CIGARETTE EMPIRE INTO CENTRAL ASIA THE NEW YORKBASED TOBACCO AND CONSUMER GOODS GIANT BOUGHT A 49 STAKE IN ALMATY TOBACCO KOMBINAT KAZAKHSTAN'S ONLY CIGARETTE MAKER THROUGH ITS PURCHASE PHILIP MORRIS IS BUYING A MONOPOLY IN A MARKET OF 17 MILLION CONSUMERS AND IS HOPING TO BUILD A STEPPINGSTONE TO OTHER FORMER SOVIET REPUBLICS US TOBACCO COMPANIES HAVE BEEN RUSHING OVERSEAS WHERE CIGARETTE MARKETS CONTINUE TO GROW WITH A SHARP DECLINE IN US TOBACCO PROFITS MANY ANALYSTS EXPECT PHILIP MORRIS TO EARN MORE FROM OVERSEAS OPERATIONS THAN FROM ITS DOMESTIC TOBACCO BUSINESS THE PRICE WASN'T DISCLOSED BUT PHILIP MORRIS SAID IT'S PLANNING TO INVEST AN ADDITIONAL 200 MILLION IN ATK OVER THE NEXT FIVE YEARS ATK'S 1700 EMPLOYEES WILL KEEP AN UNDETERMINED INTEREST IN THE COMPANY AND PHILIP MORRIS IS AIMING TO BUY THE REMAINDER FROM THE STATE PROPERTY AGENCY WITHIN THE NEXT YEAR 9309280050 930928 CANADA'S CAMPBELL HOLDS FOREIGN AID CUTS DEFENSE FUNDS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN PRIME MINISTER KIM CAMPBELL ELECTION CAMPAIGNING ON A TOUGH DEFICITELIMINATION PLAN ANNOUNCED CUTS IN DEFENSE SPENDING AND BUSINESS SUBSIDIES AND A FREEZE OF FOREIGN AID THE MEASURES ARE TO HELP ACHIEVE MS CAMPBELL'S GOAL OF ELIMINATING THE FEDERAL GOVERNMENT'S BUDGET DEFICIT IN FIVE YEARS THE DEFICIT THIS YEAR IS EXPECTED TO TOTAL 326 BILLION CANADIAN DOLLARS US247 BILLION WE MUST PUT OUR FINANCIAL HOUSE IN ORDER MS CAMPBELL SAID IN A SPEECH ANNOUNCING THE SPENDING CURBS THE MEASURES WHICH MS CAMPBELL ESTIMATED WILL SAVE C585 BILLION OVER THE NEXT FIVE YEARS WILL ONLY TAKE EFFECT IF HER PROGRESSIVE CONSERVATIVE PARTY WINS THE ELECTION ON OCT 25 MS CAMPBELL'S SPEECH WAS DESIGNED TO DEAL WITH GROWING SKEPTICISM ABOUT THE ABILITY OF HER GOVERNMENT TO ELIMINATE THE BUDGET DEFICIT AN OPINION POLL PUBLISHED YESTERDAY SHOWED THAT 71 OF CANADIANS DON'T BELIEVE MS CAMPBELL CAN FULFILL HER ZERODEFICIT PLEDGE THE CONSERVATIVE CAMPAIGN HAS SHOWN SIGNS OF FALTERING IN RECENT DAYS PARTLY BECAUSE OF OPPOSITION POLITICAL PARTY ATTACKS AGAINST THE CONSERVATIVES' PLATFORM OPINION POLLS YESTERDAY SHOWED THE OPPOSITION LIBERAL PARTY HAS MOVED AHEAD OF THE CONSERVATIVES IN VOTER SUPPORT THE LIBERAL PLATFORM CALLS FOR A LESS AMBITIOUS DEFICIT REDUCTION EFFORT IT WOULD REDUCE THE BUDGET DEFICIT TO THE EQUIVALENT OF 3 OF CANADA'S GROSS DOMESTIC PRODUCT WITHIN THREE YEARS THE DEFICIT NOW AMOUNTS TO MORE THAN 5 OF GDP WHICH IS THE TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES MS CAMPBELL SAID HER DEFICITELIMINATION PLAN DOESN'T INVOLVE ANY REDUCTION IN FEDERAL SPENDING ON OLDAGE PENSIONS AND OTHER SOCIAL SECURITY PROGRAMS THERE IS NO SECRET AGENDA TO CUT CANADA'S SOCIAL PROGRAMS SHE SAID SHE ALSO REAFFIRMED THAT HER FISCAL PLAN INVOLVED NO INCREASE IN TAXES AND NO NEW TAXES POLITICAL ANALYSTS SAY MS CAMPBELL HAS A DIFFICULT MESSAGE TO COMMUNICATE BECAUSE OPINION POLLS SHOW THAT CANADIANS ARE MORE CONCERNED ABOUT UNEMPLOYMENT THAN ABOUT THE GOVERNMENT'S BUDGET DEFICIT THE UNEMPLOYMENT RATE IS 113 OF THE LABOR FORCE THE LIBERALS SAY THE NO 1 PRIORITY OF THE LIBERAL PLATFORM IS JOBS FOR CANADIANS AND ECONOMIC GROWTH THE LIBERALS ARE LED BY JEAN CHRETIEN A CABINET MINISTER IN THE GOVERNMENT OF FORMER PRIME MINISTER PIERRE TRUDEAU 9309280049 930928 INTERNATIONAL GRAND MET SETS 264 MILLION RESTRUCTURING BY KEVIN HELLIKER STAFF REPORTER OF THE WALL STREET JOURNAL GRAND MET SAID IT EXPECTS TO REPORT THAT IN THE YEAR ENDING THURSDAY EARNINGS BEFORE TAXES AND EXTRAORDINARY ITEMS ROSE 5 FROM THE 871 MILLION REPORTED LAST YEAR THAT WOULD PUT THIS YEAR'S EARNINGS AT ABOUT 915 MILLION SIGNIFICANTLY BELOW THE 970 MILLION ANALYSTS WERE FORECASTING DESPITE THE ADDED BLOW OF AN UNEXPECTED RESTRUCTURING CHARGE GRAND MET SHARES ROSE 10 PENCE ON THE LONDON STOCK EXCHANGE TO CLOSE AT 403 PENCE 608 LAST WEEK WHEN GRAND MET NAMED GEORGE BULL AS CHIEF EXECUTIVE SNUBBING CHIEF OPERATING OFFICER AND HEIRAPPARENT IAN MARTIN ANALYSTS INTERPRETED THE MOVE AS PUNISHMENT FOR COMING BAD NEWS YESTERDAY'S ANNOUNCEMENT CONFIRMED THAT ANALYSIS THERE'S A SENSE OF RELIEF BECAUSE THE NEWS WASN'T AS BAD AS EXPECTED SAID ERIC FRANKIS AN ANALYST WITH HOARE GOVETT SECURITIES IN LONDON THE RESTRUCTURING WILL RESULT IN THE LOSS OF ABOUT 3000 JOBS OR 3 OF GRAND MET'S WORLDWIDE WORK FORCE INCLUDING ABOUT 600 AT GREEN GIANT A DIVISION OF GRAND MET'S PILLSBURY UNIT GRAND MET WHICH ALSO OWNS THE BURGER KING AND HAAGENDAZS BRANDS SAID ITS NORTH AMERICAN FOOD OPERATIONS MAINLY GREEN GIANT WILL ACCOUNT FOR 65 MILLION OF THE RESTRUCTURING CHARGE PILLSBURY SAID ONE US AND THREE CANADIAN GREEN GIANT VEGETABLEPROCESSING PLANTS WILL BE CLOSED OVER THE NEXT 18 MONTHS GRAND MET'S PEARLE EYECARE STORES IN THE US WILL ACCOUNT FOR 60 MILLION OF THE RESTRUCTURING CHARGE LARGELY THROUGH STORE CLOSINGS AND THE SELLOFF OF SURPLUS ASSETS FOLLOWING A 33 MILLION LOSS LAST YEAR PEARLE IS EXPECTED TO BREAK EVEN IN FISCAL 1993 GRAND MET SAID GRAND MET SAID THE REMAINING 50 MILLION OF THE RESTRUCTURING CHARGE WILL BE SPREAD ACROSS ITS GLOBAL OPERATIONS IT SAID IT EXPECTS TO REAP BENEFITS FROM THE RESTRUCTURING OF ABOUT 80 MILLION A YEAR IN THE NEXT TWO YEARS GRAND MET SAID IT ALSO EXPECTS TO REPORT AN EXTRAORDINARY GAIN OF 24 MILLION FROM THE SALE OF INVESTMENTS NOTABLY ITS STAKE IN A US FLOURMILLING VENTURE WITH ARCHERDANIELSMIDLAND CO EXPLAINING THE RESTRUCTURING SIR ALLEN SHEPPARD CHAIRMAN SAID SIGNIFICANT BENEFITS FROM ECONOMIC RECOVERY IN EITHER THE UK OR THE US AREN'T YET APPARENT GIVEN THAT THE OUTLOOK FOR THE RATE OF GROWTH IN CONSUMER DEMAND REMAINS UNCERTAIN WE MUST ACT NOW TO PROTECT FUTURE GROWTH PROSPECTS BY UNDERTAKING A FURTHER NECESSARY ROUND OF COST REDUCTIONS GRAND MET SAID ACCOUNTING CHANGES RELATED TO HYPERINFLATIONARY ECONOMIES SUCH AS BRAZIL'S PROMPTED IT TO RESTATE ITS 1992 EARNINGS DOWNWARD BY 12 MILLION TO 859 MILLION IT SAID THE CHANGE WON'T AFFECT ITS BALANCE SHEET 9309280048 930928 TOSCO AGREES TO BUY RETAIL OPERATIONS REFINERY FROM BP NEW YORK TOSCO CORP SAID IT HAS AGREED TO BUY A REFINERY AND RETAIL BUSINESS FROM THE NORTH AMERICAN UNIT OF BP PETROLEUM CO FOR 125 MILLION THE INDEPENDENT REFINER BASED IN STAMFORD CONN SAID IT IS ALSO WILLING TO PAY BP AN ADDITIONAL 150 MILLION OVER FIVE YEARS DEPENDING UPON THE PROFITABILITY OF THE BUSINESSES BP WOULD RECEIVE A PORTION OF THE PROFITS OF THOSE OPERATIONS THE REFINERY LOCATED IN FERNDALE WASH WAS BP'S ONLY REFINERY ON THE WEST COAST THE SALE LEAVES THE BRITISH COMPANY WITH FOUR REFINERIES IN THE US MOSTLY IN THE EAST BP OFFICIALS WERE UNAVAILABLE TO COMMENT THE PURCHASE INCREASES TOSCO'S REFINING CAPACITY ON THE WEST COAST TO 250000 BARRELS A DAY ACCORDING TO THOMAS D O'MALLEY CHAIRMAN OF TOSCO THE COMPANY HAS REFINING CAPACITY ON THE EAST COAST OF ABOUT 200000 BARRELS DAILY MR O'MALLEY SAID THAT THIS PURCHASE GIVES TOSCO THE OPPORTUNITY TO JUMP INTO RETAIL GASOLINE OPERATIONS IN A MAJOR WAY THE COMPANY HAS HAD WHOLESALE OPERATIONS IN THE NORTHWEST SINCE THE LATE 1970S WITH THE PURCHASE TOSCO WILL GARNER 16 OF THE RETAIL GASOLINE MARKET IN WASHINGTON AND OREGON IN ADDITION TO THE 85000BARRELADAY REFINERY THE PURCHASE INCLUDES 105 COMPANYOWNED STATIONS 27 LEASED STATIONS A MARKETING NETWORK SERVING 377 INDEPENDENTLY OWNED BP OUTLETS AND PRODUCT TERMINALS AT RENTON AND TACOMA WASH 9309280047 930928 INTERNATIONAL BRIEF HOOGOVENS & STAALFABRIEKEN NV JOB CUTS AND SUBCONTRACTING OF SOME OPERATIONS PLANNED DUTCH STEEL AND ALUMINUM COMPANY HOOGOVENS & STAALFABRIEKEN NV SAID IT WILL EXTEND CURRENT REORGANIZATION PLANS INTO 1996 SLASHING ADDITIONAL JOBS AND SUBCONTRACTING CERTAIN OPERATIONS THE MONEYLOSING COMPANY SAID IT WILL SLASH AN ADDITIONAL 400 JOBS IN 1996 AT ITS CORE STEEL ACTIVITIES ABOVE THE ALREADY ANNOUNCED 1000 JOB CUTS PLANNED FOR THE NEXT TWO YEARS HOOGOVENS ALSO IS PLANNING TO TRANSFER THE MAINTENANCE ACTIVITIES OF ITS STEEL PRODUCTION OPERATIONS EMPLOYING SOME 1400 PERSONS TO THIRD PARTIES IN THE FUTURE THE COMPANY WILL SUBCONTRACT ITS MAINTENANCE ACTIVITIES THE COMPANY SAID THE UNPROFITABLE COMPANY IS TAKING THE EXTRA MEASURES IN RESPONSE TO OVERSUPPLIED AND RECESSIONHIT MARKETS 9309280046 930928 WHO'S NEWS AVERY DENNISON CORP AVERY DENNISON CORP PASADENA CALIF DONALD L THOMPSON WAS ELECTED GROUP VICE PRESIDENT OFFICE PRODUCTS GROUP EFFECTIVE OCT 1 HE SUCCEEDS DONALD D BELCHER 54 WHO RESIGNED TO PURSUE OTHER BUSINESS OPPORTUNITIES MR THOMPSON 52 MOST RECENTLY WAS VICE PRESIDENT SALES AND CUSTOMER OPERATIONS NORTH AMERICA FOR THE OFFICE PRODUCTS GROUP 9309280045 930928 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CENCALL COMMUNICATIONS CORP AN OFFERING OF 230 MILLION OF SENIOR DISCOUNT NOTES DUE 2003 AND WARRANTS TO PURCHASE COMMON STOCK VIA MERRILL LYNCH & CO CORTECH INC AN OFFERING OF TWO MILLION COMMON SHARES VIA MONTGOMERY SECURITIES AND HAMBRECHT & QUIST INC JOHN ALDEN FINANCIAL CORP AN OFFERING OF SIX MILLION COMMON SHARES VIA CS FIRST BOSTON ALEX BROWN & SONS INC MERRILL LYNCH & CO AND ROBINSONHUMPHREY CO PETROLANE INC AN OFFERING OF UP TO 200 MILLION OF 105 SERIES A SENIOR SECURED NOTES DUE 1999 PYROCAP INTERNATIONAL CORP AN OFFERING OF 3254015 COMMON SHARES SIMON PROPERTY GROUP INC AN INITIAL OFFERING OF 328 MILLION SHARES VIA MERRILL LYNCH & CO CS FIRST BOSTON LEHMAN BROTHERS PAINEWEBBER INC AND DEAN WITTER REYNOLDS INC SMITH BARNEY SHEARSON INTERNATIONAL ADVISORS CURRENCY FUND LP A SHELF OFFERING OF 10 MILLION UNITS OF LIMITED PARTNERSHIP INTEREST VIA SMITH BARNEY SHEARSON INC 9309280044 930928 MAGAININ PHARMACEUTICALS PLYMOUTH MEETING PA MAGAININ PHARMACEUTICALS INC ANNOUNCED A PRIVATE PLACEMENT OF 22 MILLION COMMON SHARES AT 875 A SHARE THE COMPANY HAS ABOUT 11 MILLION COMMON SHARES OUTSTANDING PROCEEDS FROM THE TRANSACTION WHICH IS SUBJECT TO CERTAIN CONDITIONS WILL BE USED FOR CLINICAL TRIALS RESEARCH AND DEVELOPMENT AND OTHER GENERAL CORPORATE PURPOSES THE COMPANY SAID 9309280043 930928 INTERNATIONAL BRIEF CERUS SA FRENCH HOLDING COMPANY POSTS NARROWER LOSS FOR HALF CERUS SA A FRENCH HOLDING COMPANY CONTROLLED BY ITALIAN INVESTOR CARLO DE BENEDETTI SAID ITS LOSS FOR THE FIRST HALF NARROWED TO 97 MILLION FRANCS 17 MILLION FROM 377 MILLION FRANCS A YEAR EARLIER CERUS ALSO SAID THE SALE OF NEARLY ALL OF ITS 3 STAKE IN FRANCE'S CIE DE SUEZ YIELDED A CAPITAL GAIN OF 14 BILLION FRANCS WHICH COVERED THE COST OF RECAPITALIZING CERUS'S AILING FINANCIAL UNIT BANQUE DUMENIL LEBLE CERUS ALSO SAID MR DE BENEDETTI WILL RESIGN FROM THE BOARD OF SUEZ AT THE END OF THIS YEAR HOWEVER SUEZ CHAIRMAN GERARD WORMS WILL REMAIN ON THE CERUS BOARD SUEZ OWNS 34 OF CERUS CERUS'S MAIN ASSET IS A 35 STAKE IN VALEO SA THE FRENCH AUTOPARTS GROUP CERUS SAID THE VALEO STAKE'S CONTRIBUTION TO GROUP PROFIT FELL TO 115 MILLION FRANCS FROM 129 MILLION FRANCS BANQUE DUMENIL LEBLE ITS CAPITAL REINFORCED BY 13 BILLION FRANCS POSTED A FIRSTHALF LOSS OF 39 MILLION FRANCS NARROWING FROM A LOSS OF 374 MILLION FRANCS CERUS ALSO HAS INVESTMENTS IN SPAIN AND EASTERN EUROPE NOTABLY HUNGARY 9309280042 930928 LATIN AMERICAN FIRMS BREAK WITH PAST SCRAMBLE TO BE LISTED ON US EXCHANGES BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY BREAKING A LONG TRADITION OF SELLING SHARES DISCREETLY TO A FEW BIG US INVESTORS LATIN AMERICAN COMPANIES ARE SCRAMBLING TO GET THEIR STOCK LISTED FOR PUBLIC TRADING IN THE US OF THE NEW YORK STOCK EXCHANGE'S 25 FOREIGN STOCK LISTINGS THIS YEAR 11 WERE FROM LATIN COMPANIES LAST WEEK ALONE THE BIG BOARD ADDED THREE NEW LATIN LISTINGS MEXICAN CONSTRUCTION COMPANY GRUPO TRIBASA SA SOCIEDAD QUIMICA Y MINERA OF CHILE AND PANAMANIANREGISTERED BOTTLER PANAMERICAN BEVERAGES THE BIG BOARD RECORD FOR TOTAL FOREIGN LISTINGS WAS 16 LAST YEAR WE WILL PROBABLY LIST MORE COMPANIES THAN THAT FROM LATIN AMERICA THIS YEAR SAYS ROBERT BRITZ A BIG BOARD VICE PRESIDENT HE SAYS THE EXCHANGE COULD LIST FIVE TO SIX MORE LATIN ISSUES BEFORE THE YEAR CLOSES AT A TIME WHEN MANY INVESTORS STILL CAN'T BUY MANY OF EUROPE'S BESTKNOWN COMPANIES ON A US EXCHANGE LATIN AMERICA HAS BECOME AN UNEXPECTEDLY STRONG COMPONENT OF THE GRADUAL GLOBALIZATION OF US STOCK MARKETS BY MY COUNT THERE ARE 40 TO 60 LATIN AMERICAN COMPANIES THAT ARE CONSIDERING OFFERINGS OVER THE NEXT TWO OR THREE YEARS SAYS STOWE ROSE DIRECTOR LATIN AMERICA AT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS WHETHER THE MARKET CAN ABSORB THAT WE DON'T KNOW THE NASD'S NASDAQ STOCK MARKET LISTED TWO NEW LATIN ISSUES THIS YEAR BANCO DE GALICIA A LARGE ARGENTINE BANK AND SERVICIOS QUADRUM FINANCIERO A MEXICAN LEASING AND FACTORING COMPANY WHICH JUST RECEIVED A MEXICAN BANKING LICENSE THE AMERICAN STOCK EXCHANGE HAS ADDED ONE GRUPO SIMEC SA A MEXICAN STEEL FIRM PREVIOUSLY LATIN AMERICAN COMPANIES LEANED TOWARD SALES OF PRIVATE STOCK OR AT MOST SALES OF RESTRICTED 144A SHARES IN THE US THE 144A STOCK SALES NAMED AFTER A SECURITIES AND EXCHANGE COMMISSION RULE HAVE LESSRIGOROUS ACCOUNTING AND DISCLOSURE REQUIREMENTS AND ARE RESERVED FOR LARGE INSTITUTIONAL INVESTORS THAT WAS FINE FOR MANY FAMILYOWNED COMPANIES IN LATIN AMERICA WHICH FOR PRIVACY OR TAX PURPOSES RAN THEIR BUSINESSES WITH GENERALLY UNACCEPTED ACCOUNTING PRINCIPLES RECONCILING LATIN AMERICAN COMPANIES' FINANCIALS TO US STANDARDS IS STILL A LABORIOUS PROCESS BUT IT'S LESS CUMBERSOME THAN LISTING EUROPEAN COMPANIES RELUCTANT TO DISCLOSE HIDDEN RESERVES THE LATIN AMERICANS WERE MUCH MORE INFLUENCED BY AMERICAN ACCOUNTING PRACTICES THAN BY CONTINENTAL EUROPEAN ACCOUNTING PRACTICES SAYS SERGIO GALVIS PARTNER AT SULLIVAN & CROMWELL EVEN SO HE SAYS LATIN AMERICAN COMPANIES OFTEN HAVE TO GRAPPLE WITH ACCOUNTING ADJUSTMENTS FOR INFLATION AND UNDERFUNDED LIABILITIES SUCH AS PENSION PAYMENTS AND DEFERRED TAXES PRESSURE FROM REGULATORS AT LEAST IN MEXICO AND AN AWAKENED SENSE OF THE PRESTIGE OF PUBLIC OFFERINGS HAVE CAUSED MORE LATIN COMPANIES TO LIST PUBLICLY US EXCHANGE OFFICIALS SAY WE ALMOST DEMAND A PUBLIC LISTING IF THEY WANT OUR ADVICE ON EQUITY SALES IN THE US SAYS CARLOS MENDOZA DIRECTOR OF INVESTMENT BANKING AT NACIONAL FINANCIERA MEXICO'S INFLUENTIAL DEVELOPMENT BANK A PUBLIC LISTING IMPROVES LIQUIDITY TREMENDOUSLY AND IMPROVES INVESTOR AWARENESS HE ADDS MEXICAN COMPANIES ALSO WANT TO PRIME THE STOCK MARKETS IN PREPARATION FOR LARGER CAPITAL DEMANDS IF THE NORTH AMERICAN FREE TRADE AGREEMENT IS APPROVED THE MEXICAN BOLSA IS ALIVE WITH TALK ABOUT WHICH COMPANIES ARE PLANNING US STOCK OFFERINGS GOLDMAN SACHS HAS FILED FOR AN OFFERING OF MEXICAN ENGINEERING FIRM BUFETE INDUSTRIAL INVESTMENT BANKERS SAY BREADMAKER GRUPO BIMBO SA IS DISCUSSING A US LISTING CONSTRUCTION FIRMS GUTSA AND GRUPO MEXICANO INDUSTRIAL Y DESARROLLO ARE SAID TO BE DISCUSSING STOCK SALES CEMENTOS MEXICANOS SA KNOWN AS CEMEX AND BREWER GRUPO MODELO HAVE CONSIDERED US STOCK LISTINGS BANKERS SAY AND PHARMACEUTICALS CONCERN GRUPO CASA AUTREY PLANS A BIG BOARD LISTING THE THREE LARGEST MEXICAN BANKING GROUPS BANACCI BANCOMER AND GRUPO SERFIN ARE ALSO SAID TO BE EXPLORING THE PROSPECTS OF US LISTINGS TELEVISA THE MEXICAN BROADCASTER SAID LAST WEEK THAT IT WILL LIST STOCK IN THE US AMONG COMPANIES BUCKING THE TREND IS A HOLDING COMPANY OF MEXICO'S GRUPO INDUSTRIAL MASECA SA WHICH PLANS TO SELL 144A OR RESTRICTED STOCK TO US INVESTORS THIS YEAR HOWEVER MASECA IS LIKELY TO SEEK A PUBLIC STOCK LISTING IN 1994 ONE INVESTMENT BANKER SAID FROM 1991 WHEN TELEFONOS DE MEXICO BROKE THE MARKET OPEN WITH A 2 BILLION OFFERING TO DATE LATIN AMERICAN COMPANIES HAVE RAISED 1227 BILLION THROUGH EQUITY OFFERINGS IN THE US ACCORDING TO THE MAGAZINE LATINFINANCE IN MIAMI ONE LAWYER FAMILIAR WITH OFFICIALS AT MEXICO'S COMISION NACIONAL DE VALORES THE EQUIVALENT OF THE SECURITIES AND EXCHANGE COMMISSION SAYS THESE REGULATORS HAVE ENCOURAGED PUBLIC LISTINGS EVER SINCE AN AVALANCHE OF SELLING IN CEMEX SHARES IN JUNE 1992 THAT WAS WHEN CEMEX PURCHASED A SPANISH CEMENT COMPANY WITHOUT NOTIFYING SHAREHOLDERS THE 144A STOCKHOLDERS IN THE US DUMPED THE STOCK WHICH LED TO A WAVE OF SELLING ON THE MEXICAN BOLSA CNV OFFICIALS DECIDED WIDER OWNERSHIP OF STOCK WOULD BE WISE THE ATTORNEY SAID REGULATORY OFFICIALS DIDN'T RETURN PHONE CALLS ASIDE FROM LAST WEEK'S THREE LATIN ISSUES THE EIGHT OTHER LATIN LISTINGS ON THE BIG BOARD THIS YEAR ARE BUENOS AIRES EMBOTELLADORA AND YPF OF ARGENTINA CORIMON OF VENEZUELA GRUPO DINA RADIO CENTRO AND BOTTLER COCACOLA FEMSA OF MEXICO AND MASISA AND MADECO OF CHILE 9309280041 930928 TECHNOLOGY BRIEF IMMUNEX CORP DRUG FOR BACTERIAL INFECTION REMOVED FROM CLINICAL TEST IMMUNEX CORP SAID IT DISCONTINUED TESTS OF ITS SOLUBLE TUMOR NECROSIS FACTOR RECEPTOR AFTER THE DRUG PRODUCED NO POSITIVE CLINICAL RESULTS ON PATIENTS WITH BACTERIAL INFECTIONS IMMUNEX SAID CLINICAL TRIALS ON 141 PATIENTS SHOWED NO DIFFERENCE IN MORTALITY RATES FOR PATIENTS WHO RECEIVED LOW DOSES OF THE DRUG AND THOSE WHO RECEIVED A PLACEBO THOSE WHO RECEIVED HIGHER DOSES HAD ELEVATED DEATH RATES A SPOKESWOMAN SAID THE SEATTLE COMPANY SAID IT WILL ANALYZE RESULTS FROM THE TESTS OVER THE NEXT TWO MONTHS AND PLANNED TO CONTINUE CLINICAL TRIALS OF THE DRUG ON PATIENTS WITH RHEUMATOID ARTHRITIS HIV CROHN'S DISEASE AND OTHER INFLAMMATORY CONDITIONS 9309280040 930928 WHO'S NEWS HOFFMANLA ROCHE INC HOFFMANNLA ROCHE INC NUTLEY NJ STEPHEN G SUDOVAR 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF THE PHARMACEUTICAL DIVISION AND A DIRECTOR OF THIS HEALTHCARE CONCERN MR SUDOVAR PREVIOUSLY ON SPECIAL ASSIGNMENT IN EUROPE FOR ROCHE HOLDING LTD BASEL SWITZERLAND SUCCEEDS IN BOTH POSITIONS HERBERT J CONRAD WHO RETIRED HOFFMANNLA ROCHE IS THE US AFFILIATE OF ROCHE HOLDING MR SUDOVAR WILL BE RESPONSIBLE FOR THREE UNITS WITH COMBINED 1992 SALES EXCEEDING 1 BILLION IN ADDITION RONALD S LABARBERA 53 WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF ENGINEERING MR LABARBERA WHO PREVIOUSLY WAS DIRECTOR OF ENGINEERING AT ICI AMERICAS INC SUCCEEDS GERHARD FROHLICH WHO WILL RETIRE IN 1994 9309280039 930928 INTERNATIONAL BRIEF VIRGIN ATLANTIC AIRWAYS BRITISH AIRLINE TO COMMENCE HONG KONG SERVICE FEB 1 VIRGIN ATLANTIC AIRWAYS WON ITS FIGHT FOR GOOD TAKEOFF AND LANDING SLOTS IN HONG KONG AND ANNOUNCED PLANS TO FLY THERE FROM LONDON BEGINNING FEB 1 LAST MONTH RICHARD BRANSON CHAIRMAN OF THE BRITISH CARRIER SAID HE WAS STRUGGLING TO GET APPROPRIATE SLOTS TO OPERATE THE LONDONHONG KONG ROUTE AUTHORITIES IN HONG KONG HAD OFFERED HIM THE EQUIVALENT OF A GRAVEYARD SHIFT AT KAI TAK AIRPORT SAYING THE AIRLINE COULD USE TAKEOFFF SLOTS THAT WOULD MEAN ARRIVING IN LONDON AT AROUND 3 AM BUT VIRGIN A UNIT OF VIRGIN GROUP LTD AND HONG KONG AUTHORITIES HAVE SINCE COME TO AN AGREEMENT ON BETTER TIMES VIRGIN WILL BE TAKING ON THE TWO ESTABLISHED CARRIERS BRITISH AIRWAYS PLC AND CATHAY PACIFIC WHO HAVE LONG DOMINATED THE LONDONHONG KONG ROUTE 9309280038 930928 WHO'S NEWS LORAL CORP LORAL CORP NEW YORK ROBERT W RISCASSI WAS NAMED VICE PRESIDENT OF LAND SYSTEMS A NEW POSITION BY THIS HIGH TECHNOLOGY COMPANY THAT CONCENTRATES IN DEFENSE ELECTRONICS COMMUNICATIONS AND SPACE RETIRED GEN RISCASSI 57 YEARS OLD IS THE FORMER US ARMY COMMANDER IN CHIEF UNITED NATIONS COMMAND/KOREA 9309280037 930928 BUSINESS BRIEF CENTRAL FIDELITY BANKS INC BANK'S NONPERFORMING ASSETS ARE INCREASED BY 23 MILLION CENTRAL FIDELITY BANKS INC RICHMOND VA SAID IT INCREASED ITS NONPERFORMING ASSETS BY 23 MILLION AND WROTE DOWN CERTAIN REAL ESTATE LOANS BY 40 MILLION THE MOVES REFLECT AN INTENTION TO HOUSECLEAN ANY QUESTIONABLE ASSETS A SPOKESWOMAN SAID THE 23 MILLION INCREASE BOOSTED NONPERFORMING ASSETS TO ABOUT 135 MILLION THE BANK HOLDING COMPANY'S MAIN UNIT CENTRAL FIDELITY BANK IS APPLYING FOR A NATIONAL BANK CHARTER CENTRAL FIDELITY SAID IT ALSO SOLD 600 MILLION OF LONGTERM CORPORATE BONDS TO IMPROVE LIQUIDITY AND REDUCE FUTURE INTERESTRATE RISK THE SALE WILL RESULT IN A THIRDQUARTER AFTERTAX GAIN OF ABOUT 329 MILLION CARROLL L SAINE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE STEPS REDUCE VULNERABILITY TO PROBLEM REAL ESTATE LOANS BETTER STABILIZE FUTURE EARNINGS AND WILL HAVE ONLY A NOMINAL IMPACT ON CURRENT NET INCOME HE SAID THE COMPANY EXPECTS TO REPORT RECORD NET INCOME IN THE THIRD QUARTER CENTRAL FIDELITY HAS 91 BILLION IN ASSETS AND 230 BRANCH OFFICES IN THE STATE 9309280036 930928 WHO'S NEWS SHAMAN PHARMACEUTICALS INC SHAMAN PHARMACEUTICALS INC SOUTH SAN FRANCISCO CALIF JOHN A YOUNG THE 62YEAROLD FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HEWLETTPACKARD CO WAS ELECTED A DIRECTOR OF THIS DRUG COMPANY INCREASING THE BOARD'S SIZE TO SEVEN MEMBERS 9309280035 930928 WHO'S NEWS ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES INC SPRINGDALE ARK JIM BROOKS 58 YEARS OLD WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF COMPOSITE BUILDING MATERIALS FROM RECYCLED PLASTIC AND WOOD FIBERS MR BROOKS WHO BECAME A DIRECTOR OF THE COMPANY IN MARCH SUCCEEDS HIS SON JOE G BROOKS 38 YEARS OLD WHO WILL CONTINUE AS PRESIDENT CHIEF FINANCIAL OFFICER AND A DIRECTOR OF THE COMPANY THE ELDER MR BROOKS WAS CHAIRMAN OF THE ARKANSAS POLLUTION CONTROL AND ECOLOGY COMMISSION UNDER THREE ADMINISTRATIONS INCLUDING THAT OF PRESIDENT CLINTON WHEN HE WAS GOVERNOR THE YOUNGER MR BROOKS SAID THE CHANGE WAS PART OF A RESTRUCTURING AIMED AT BEEFING UP OUR MANAGEMENT TEAM HE ALSO SAID HE EXPECTS THE COMPANY WILL ADD MORE PEOPLE INCLUDING A NEW CHIEF FINANCIAL OFFICER IN THE NEAR FUTURE 9309280034 930928 WHO'S NEWS PEPSICO INC PEPSICO INC PURCHASE NY JOHN J PEARL 57 YEARS OLD WAS APPOINTED TO THE NEW POST OF SENIOR VICE PRESIDENT OF PERSONNEL FOR PEPSICO FOODS & BEVERAGES INTERNATIONAL A UNIT OF THIS SOFT DRINK AND FOOD COMPANY MR PEARL MOST RECENTLY WORKED AS VICE PRESIDENT OF PERSONNEL FOR PEPSICOLA INTERNATIONAL THE OVERSEAS SOFT DRINK UNIT OF THE COMPANY 9309280033 930928 TECHNOLOGY FDA AIDE ASSAILS CELLULAR GROUP ON SAFETY STANCE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SENIOR OFFICIAL AT THE FOOD AND DRUG ADMINISTRATION ADMONISHED THE CELLULAR TELEPHONE INDUSTRY ASSOCIATION FOR ITS UNWARRANTED CONFIDENCE THAT CELLULAR PHONES ARE SAFE TO USE IN A LETTER TO THE ASSOCIATION THE FDA OFFICIAL EXPRESSED CONCERN THAT A JULY NEWS CONFERENCE CALLED BY THE ASSOCIATION TO ANNOUNCE AN INDUSTRY STUDY INTO A POSSIBLE LINK BETWEEN CELLULAR RADIO WAVES AND CANCER WAS TOO UPBEAT THE LETTER WHICH WAS DATED JULY 19 AND NOT MADE PUBLIC BY THE FDA SURFACED RECENTLY IN A REPORT IN MICROWAVE NEWS AN INDUSTRY NEWSLETTER BASED HERE THE FDA'S STANCE IS SIGNIFICANT BECAUSE THE AGENCY IS RESPONSIBLE FOR REGULATING ELECTRONIC DEVICES THE CELLULAR INDUSTRY IS ANXIOUS TO DISPEL FEARS THAT ONE OF THE WORLD'S HOTTEST SELLING CONSUMER ELECTRONICS PRODUCTS THE WIRELESS POCKET PHONE MAY PROMOTE CANCER IN THE BRAIN THROUGH ITS TINY RADIO TRANSMITTER THOSE FEARS AROSE AFTER A LAWSUIT WAS FILED EARLIER THIS YEAR ALLEGING THAT CELLULAR PHONES CAUSE CANCER WHILE THE INDUSTRY GROUP HAS ONLY BEGUN FUNDING ITS RESEARCH ON CELLULAR PHONES AND CANCER BOTH THE WRITTEN PRESS STATEMENTS AND YOUR VERBAL COMMENTS DURING THE CONFERENCE SEEMED TO DISPLAY AN UNWARRANTED CONFIDENCE THAT THESE PRODUCTS WILL BE FOUND TO BE ABSOLUTELY SAFE WROTE ELIZABETH D JACOBSON DEPUTY DIRECTOR FOR SCIENCE AT THE FDA'S CENTER FOR DEVICES AND RADIOLOGICAL HEALTH ALTHOUGH THERE IS NO DIRECT EVIDENCE LINKING CELLULAR PHONES WITH HARMFUL EFFECTS IN HUMANS A FEW ANIMAL STUDIES SUGGEST THAT SUCH EFFECTS COULD EXIST IT WOULD BE PREMATURE SHE CONCLUDED TO ASSUME THE PHONES ARE PERFECTLY SAFE OR A HAZARD UNTIL MORE TESTING IS DONE GEORGE CARLO AN EPIDEMIOLOGIST HIRED BY THE ASSOCIATION TO OVERSEE ITS RESEARCH EFFORT SAID HE AND DR JACOBSON HAVE SINCE HAD SEVERAL MEETINGS TO DISCUSS THE AGENCY'S CONCERNS WE'RE TRYING TO MAKE THIS INVESTIGATION RIGOROUS ENOUGH SO THAT THE FDA FEELS COMFORTABLE USING IT FOR THEIR FINAL POLICY DECISION ON THE PHONES HE SAID BUT DR CARLO'S INVESTIGATION INTO THE HEALTH EFFECTS OF ELECTROMAGNETIC FIELDS IN THE CELLULAR RADIO FREQUENCY IS ALREADY SEVERAL MONTHS BEHIND SCHEDULE IN JULY THE ASSOCIATION SAID ITS SCIENTIFIC PEER REVIEW GROUP WOULD PRESENT THE RESULTS OF ITS INVESTIGATION INTO EXISTING STUDIES ON ELECTROMAGNETIC FIELDS TO THE FDA BY THE END OF THE SUMMER DR CARLO WHO IS ALSO A PROFESSOR AT GEORGE WASHINGTON SCHOOL OF MEDICINE NOW SAYS THE SCIENTISTS WON'T CONCLUDE THIS INITIAL STUDY UNTIL SOMETIME IN NOVEMBER ALTHOUGH THE FDA PLANS TO REVIEW THE RESULTS OF THE ASSOCIATION'S RESEARCH THE AGENCY HAS PUBLICLY DISAVOWED RESPONSIBILITY FOR THE RESEARCH WHICH IT DIDN'T COMMISSION IT IS PREMATURE TO SAY WE WILL CREDENTIAL THE RESEARCH DR JACOBSON WROTE THE FDA HAS NO PLANS AT THIS TIME TO CONDUCT ITS OWN RESEARCH THE ASSOCIATION EXPECTS ITS SCIENTIFIC INVESTIGATION TO TAKE THREE TO FIVE YEARS AT A COST OF AS MUCH AS 5 MILLION A YEAR MEANWHILE THE CELLULAR PHONE INDUSTRY CONTINUES TO EXPAND AT MORE THAN 30 A YEAR 9309280031 930928 BUSINESS BRIEF CRIIMI MAE INC REIT SUBSIDIARY SAY SUIT FILED BY HOLDERS IS SETTLED CRIIMI MAE INC AND ITS PUBLICLY TRADED SUBSIDIARY CRI LIQUIDATING REIT INC SAID THEY SETTLED A SUIT WITH A GROUP OF CRIIMI SHAREHOLDERS AS PART OF THE SETTLEMENT THE ROCKVILLE MD PARENT WILL ISSUE AS MANY AS 25 MILLION WARRANTS TO PURCHASE CRIIMI MAE SHARES AND PAY A MAXIMUM OF 14 MILLION FOR THE PLAINTIFFS' COURTAPPROVED ATTORNEYS' FEES AND CERTAIN OTHER COSTS THE WARRANTS WILL HAVE A TERM OF 18 MONTHS AND AN EXERCISE PRICE OF 1317 A SHARE THE COMPANIES SAID INSURANCE IS EXPECTED TO PROVIDE A SUBSTANTIAL AMOUNT OF THE CASH PORTION OF THE SETTLEMENT THE SUIT WAS FILED IN 1990 FOLLOWING FORMATION OF THE TWO REAL ESTATE INVESTMENT TRUSTS IN A MERGER OF THREE PREDECESSOR FUNDS THE PLAINTIFFS ALLEGED THAT THE COMPANIES BREACHED THEIR FIDUCIARY RESPONSIBILITIES WHEN THEY GAVE THE SHAREHOLDERS A STAKE IN CRIIMI MAE WHEN THE SHAREHOLDERS IN FACT WANTED TO PARTICIPATE IN CRI LIQUIDATING REIT THE COMPANIES HAVE MAINTAINED THAT THE SHAREHOLDERS HAD AN OPPORTUNITY TO CHOOSE BETWEEN THE TWO TRUSTS BUT NEVER EXERCISED IT 9309280030 930928 WHO'S NEWS MITEL CORP MITEL CORP KANATA ONTARIO JEANJACQUES CARRIER 42 YEARS OLD WAS NAMED VICE PRESIDENT OF FINANCE AND CHIEF FINANCIAL OFFICER OF THIS MANUFACTURER OF TELECOMMUNICATIONS EQUIPMENT MR CARRIER WAS PREVIOUSLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT SHERRITT INC A METALS AND FERTILIZER PRODUCER HE SUCCEEDS JAMES ELLIS WHO IS RESUMING HIS CONSULTING BUSINESS IN TORONTO 9309280029 930928 BUSINESS BRIEF CF INCOME PARTNERS INC PRELIMINARY ACCORDS SEEK TO SETTLE HOLDER LITIGATION CF INCOME PARTNERS INC A LOS ANGELES PARTNERSHIP THAT IS MOVING TOWARD DISSOLUTION SAID IT REACHED PRELIMINARY AGREEMENTS TO SETTLE UNITHOLDER LITIGATION AND A DISPUTE WITH ITS PRINCIPAL LENDER THE PARTNERSHIP SAID IT HOPES TO DISTRIBUTE A TOTAL OF ABOUT 132 MILLION OR 1 A UNIT TO HOLDERS EARLY NEXT YEAR IF A NUMBER OF RECENT AGREEMENTS ARE COMPLETED THE UNIT PRICE MORE THAN DOUBLED ON THE NEWS RISING 28 CENTS TO 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMONG THE PENDING AGREEMENTS IS THE SALE FOR 1825 MILLION OF MOST OF THE PARTNERSHIP'S ASSETS THE PROSPECTIVE BUYER IS AMERICAN CONTINENTAL PROPERTIES GROUP A NEW YORKBASED REAL ESTATE INVESTOR ALL THE AGREEMENTS ARE SUBJECT TO VARIOUS CONDITIONS AND APPROVALS THE LITIGATION INVOLVED NUMEROUS ALLEGATIONS INCLUDING THAT THE PARTNERSHIP WAS FORCED TO PURCHASE PROPERTIES AT ABOVEMARKET PRICES FROM A SUBSIDIARY OF CALIFORNIA FEDERAL BANK A LOS ANGELES THRIFT THAT IS THE PARENT OF THE PARTNERSHIP'S GENERAL PARTNER THE THRIFT IS ALSO THE PARTNERSHIP'S PRINCIPAL LENDER 9309280028 930928 ENTERPRISE HEALTH PLAN'S BREAK FOR SMALL BUSINESS REMAINS BLURRY LACK OF DATA ADDS TO SKEPTICISM ABOUT FINANCING OF CLINTON PROPOSAL BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL SMALLBUSINESS OWNERS PANTING TO FIGURE OUT THE SUBSIDY THEY COULD GET UNDER PRESIDENT CLINTON'S HEALTHCARE PLAN MIGHT NEED TO PUT THEIR CALCULATORS BACK IN THE DRAWER FOR A WHILE SOME UNANSWERED QUESTIONS ABOUT THE PLAN'S PROPOSED SUBSIDIES FOR SMALL BUSINESSES ARE MAKING IT HARDER TO SAY WHO CAN GET THE BREAK AND HOW MUCH THE PROGRAM WILL COST THE SHORTAGE OF HARD DATA IS ADDING TO SKEPTICISM ABOUT HOW THE HEALTHCARE OVERHAUL WILL BE FINANCED THE CLINTON NUMBERS HAVE CHANGED FROM WEEK TO WEEK AND IN SOME CASES ARE BASED ON UNREALISTIC ASSUMPTIONS SAYS REP JAN MEYERS OF KANSAS THE RANKING REPUBLICAN MEMBER OF THE HOUSE COMMITTEE ON SMALL BUSINESS PROBABLY A LOT OF THE FIGURES WE HAVE WON'T BE WORTH MUCH NOT BY DESIGN BUT BECAUSE PEOPLE DON'T HAVE A FULL GRASP OF THE NUMBERS UNDER THE CLINTON PROPOSAL CONTRIBUTIONS OF BUSINESSES WITH 50 OR FEWER EMPLOYEES WOULD BE CAPPED FROM A LOW OF JUST 35 OF PAYROLL IF WAGES AVERAGE LESS THAN 12000 A YEAR TO A MAXIMUM OF 79 IF WAGES AVERAGE MORE THAN 24000 THUS MANY SMALL COMPANIES WOULD PAY ONLY A FEW HUNDRED DOLLARS A YEAR FOR HEALTH COVERAGE THAT IS PROJECTED TO COST AN AVERAGE OF 1800 FOR INDIVIDUALS AND 4200 FOR FAMILIES THE PLAN CALLS FOR EMPLOYERS TO PAY 80 OF HEALTHCARE PREMIUMS AND FOR WORKERS TO PAY 20 THE GOVERNMENT WOULD PICK UP THE REST OF THE TAB FROM AN ENORMOUS SUBSIDY POOL OF 419 BILLION SPREAD OUT OVER SIX YEARS FOR BOTH BUSINESSES AND LOWINCOME INDIVIDUALS BUT SMALLBUSINESS SPECIALISTS SAY IT ISN'T CLEAR YET HOW A KEY FIGURE PAYROLL WILL BE DEFINED INDEED ADMINISTRATION OFFICIALS ACKNOWLEDGE THAT THEY HAVEN'T YET WORKED OUT A FORMULA FOR CALCULATING A COMPANY'S AVERAGE WAGE THAT IS A BIG OMISSION FOR EXAMPLE A WORK SHEET PREPARED BY THE ADMINISTRATION CONTAINS A SCENARIO IN WHICH A SMALL BUSINESS HAS 10 EMPLOYEES WHO EARN AN AVERAGE 12000 BUSINESS PAYS NO MORE THAN 420 PER EMPLOYEE OR 35 OF AVERAGE WORKER PAY THE WORK SHEET SAYS BUT THOMAS KUHLMAN VICE PRESIDENT IN THE CHICAGO OFFICE OF EMPLOYMENTBENEFITS CONSULTING FIRM TOWERS PERRIN NOTES THAT THE OWNER'S PAY WILL HAVE TO ENTER THE CALCULATION ALTHOUGH NOT ALWAYS IN THE SAME WAY THEY DON'T DEFINE WHAT PAYROLL IS HE SAYS HE SAYS HIS FIRM IS ASSUMING THE HEALTHCARE PLAN WILL FOLLOW THE SAME RULES AS TAX LAW MEANING THAT OWNERS OF REGULAR CORPORATIONS WILL HAVE TO INCLUDE ALL THEIR COMPENSATION IN COMPUTING AVERAGE WAGES BUT THAT OWNERS OF SOCALLED SUBCHAPTER S CORPORATIONS WON'T BECAUSE THEY AREN'T CONSIDERED EMPLOYEES SUCH CORPORATIONS ARE LEGALLY ORGANIZED AS CORPORATIONS BUT TAXED AS PARTNERSHIPS IN THE ABSENCE OF DETAIL WHICH CERTAINLY IS MISSING THAT'S OUR BEST GUESS MR KUHLMAN SAYS THUS HE SAYS A BUSINESS OWNER WHO MAKES 60000 AND PAYS FOUR WORKERS A TOTAL OF 37000 WOULD HAVE AN AVERAGE WORKER PAY OF 9250 AT AN S CORPORATION AND QUALIFY FOR THE MOST GENEROUS SUBSIDIES WHILE THE SAME OWNER WOULD HAVE AVERAGE PAY OF 19400 AT A REGULAR CORPORATION AND QUALIFY FOR MUCH LESS RELIEF THIS HYPOTHETICAL EXAMPLE ASSUMES THAT THE SCORPORATION OWNER PAYS HIMSELF NO STRAIGHT SALARY AT ALL MOREOVER OFFSETTING THE DIFFERENCE TO SOME EXTENT WOULD BE A REQUIREMENT FOR THE SCORPORATION OWNER TO PAY THE FULL COST OF HIS OWN COVERAGE AS A SELFEMPLOYED PERSON MR KUHLMAN SAYS SAM STARR A TAX PARTNER IN THE WASHINGTON OFFICE OF COOPERS & LYBRAND ANTICIPATES THAT ANY SALARIES THAT SCORPORATION OWNERS PAY THEMSELVES WOULD PROBABLY BE INCLUDED IN COMPUTING AVERAGE WAGES BUT COMPANY EARNINGS THAT FLOW THROUGH TO THEM AS UNDISTRIBUTED TAXABLE INCOME MIGHT NOT AN OFFICIAL WHO IS ADVISING THE CLINTON ADMINISTRATION ON THE SMALLBUSINESS ASPECT OF THE PLAN ACKNOWLEDGES THAT S CORPORATIONS ARE AN ISSUE WE'RE HAVING DISCUSSIONS AS BUSINESSES ATTEMPT TO LOWER THEIR AVERAGE WORKER PAY THE ADVISER ASKS WILL THERE BE A STAMPEDE TO S CORPORATIONS THAT'S ONE OF THE ISSUES THE ADVISER WHO REQUESTS ANONYMITY ADDS WE HAVEN'T DEFINED PAYROLL WE'RE HAVING A NUMBER OF DISCUSSIONS ABOUT WHAT SHOULD BE INCLUDED SOME QUESTION MARKS DO STOCK OPTIONS STOCK DIVIDENDS OR CAPITAL GAINS COUNT WE DO NEED TO REFINE OUR PLAN HE SAYS ANOTHER UNANSWERED QUESTION IS WHAT SMALLBUSINESS'S SHARE OF THE 419 BILLION SUBSIDY POT WOULD BE WHILE THIS HASN'T BEEN SPELLED OUT IT'S A HUGE CHUNK SAYS WHITE HOUSE HEALTHREFORM SPOKESMAN KEVIN ANDERSON EVEN SO THE NATION'S BIGGEST SMALLBUSINESS LOBBYING ORGANIZATION THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS OPPOSES THE CLINTON PROPOSAL ONE REASON SAYS LESLIE AUBIN THE FEDERATION'S HEALTHCAREPOLICY ANALYST IS THAT SMALL BUSINESSES DON'T TRUST THE ADMINISTRATION'S FIGURES THE NUMBERS DON'T ADD UP SHE SAYS HOW DO YOU FIND OUT HOW MANY BUSINESSES QUALIFY FOR SUBSIDIES IF WE DON'T GET THE RIGHT NUMBERS WE WON'T BE ABLE TO ACHIEVE HEALTHCARE REFORM INDEED THE ADMINISTRATION HASN'T YET WORKED OUT EXACTLY HOW MANY CONCERNS QUALIFY MUCH LESS HOW MANY WORKERS THEY HAVE AND OFFICIALS AT THE FEDERAL BUREAU OF LABOR STATISTICS THE SMALL BUSINESS ADMINISTRATION AND THE CENSUS BUREAU ALL SAY THAT THEY HAVE NO FIGURES BREAKING DOWN AVERAGE WAGES AT COMPANIES WITH FEWER THAN 50 WORKERS PRIVATE CONSULTING FIRMS ALSO SAY THEY LACK SUCH DATA THAT'S A NUMBER WE'RE STILL WORKING ON SAYS MR ANDERSON THE WHITE HOUSE SPOKESMAN THE MODELS COME UP WITH DOLLARS THAT YOU NEED IN MACRO TERMS BEFORE THEY COME UP WITH A HEAD COUNT SOME SPECIALISTS SAY THEY ARE CONFIDENT THE ADMINISTRATION HAS DONE ITS HOMEWORK AND IS BASING ITS CALCULATION OF 419 BILLION IN GROSS SUBSIDIES ON HARD DATA OR RELIABLE EXTRAPOLATIONS THE ADMINISTRATION EMPHASIZES THAT AFTER SUBTRACTING EXPENDITURES THAT WOULD BE SHIFTED OUT OF MEDICAID AND MEDICARE PROGRAMS THE NET BUDGETARY COST OF THE SUBSIDY PROGRAM WOULD BE A LITTLE OVER 160 BILLION MR KUHLMAN OF TOWERS PERRIN SAYS HE IS EAGER TO SEE THE FINAL NUMBERS IT'S REALLY GOING TO BE AN INTERESTING ECONOMIC GAME HE SAYS 9309280027 930928 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN HEALTHCARE REFORM MEANS CHANGE FOR PARTTIMERS THE CLINTON PLAN WOULD MAKE EMPLOYERS PROVIDE HEALTH COVERAGE FOR PARTTIMERS BASED ON THE NUMBER OF HOURS WORKED A 30HOUR WORKWEEK WOULD BE DEEMED FULL TIME RESTAURANT OWNERS AND OTHERS SAY THE HIGHER COSTS WILL FORCE CUTS IN PARTTIME EMPLOYEES THEY WILL BE LOOKING TO MAKE ADJUSTMENTS THAT MEANS GETTING RID OF PEOPLE SAYS THE NATIONAL RESTAURANT ASSOCIATION'S JEFF PRINCE BUT BETTY AMOS HEAD OF ABKEY COS WHICH RUNS 10 FUDDRUCKER FRANCHISES IN FLORIDA SAYS WE DEFINITELY WOULD BE LOOKING AT MOVING THOSE PARTTIME POSITIONS INTO FULLTIME POSITIONS CALNEX FOODS OF LOS ANGELES OPERATOR OF 66 CHURCH'S CHICKEN FRANCHISES WOULD LIKE TO DO THE SAME SAYS PRESIDENT ANIL KASHYAP BUT THERE AREN'T THAT MANY PEOPLE WHO ARE WILLING TO WORK FULL TIME OWNERS OF THE SMALLEST BUSINESSES WOULD WORK LONGER HOURS THEMSELVES SAYS WYATT CO CONSULTANT SYLVESTER SCHIEBER THE AVERAGE PROFIT MARGIN FOR A RESTAURANT WITH SALES UP TO 500000 IS 27 MR PRINCE SAYS TWOTHIRDS OF SUCH ESTABLISHMENTS DON'T OFFER EMPLOYEES HEALTH INSURANCE SOUTHERN UNION LOCALS JOIN THE ANTINAFTA CAMPAIGN POLITICIANS IN TEXAS AND OTHER BORDER STATES HAVE EMERGED AS THE FREETRADE PACT'S BIGGEST BACKERS CITING THE PROSPECT OF INCREASED TRADE WITH MEXICO AND PROMISED ENVIRONMENTALCLEANUP FUNDS BUT LOCAL UNION OFFICIALS ARE PRESSED BY THEIR NATIONAL LEADERS TO FIGHT THE DEAL IN EL PASO THE GARMENT WORKERS FLY IN ANTINAFTA POLITICIANS FROM MEXICO TO SPEAK AND UNION LEADERS ARGUE THEIR CASE ON LOCAL CALLIN SHOWS HECTOR ARELLANO OF THE ELECTRICAL WORKERS SAYS THE PACT IS GOING TO KILL US TEXAS STEELWORKERS FOLLOW DEMOCRATIC REP RON COLEMAN A NAFTA SUPPORTER FROM SPEECH TO SPEECH IN THE SHORT TERM IT DOESN'T LOOK LIKE IT WILL AFFECT MY PARTICULAR LOCAL SAYS JEANNE BOHN A TEXAS COMMUNICATIONS WORKERS OFFICIAL BUT IT DOES HURT OUR BROTHERS AND SISTERS ELSEWHERE LABOR AND MANAGEMENT STEP UP CRITICISM OF THE ADMINISTRATION BESIDES DETESTING NAFTA SOME UNIONS GRIPE OVER THE ADMINISTRATION'S WEAK SUPPORT FOR A BILL BARRING THE HIRING OF REPLACEMENTS FOR STRIKING WORKERS ITS PULLBACK ON A JOBS BILL EARLY THIS YEAR AND ITS ADVOCACY OF NEW POWER FOR WORKERMANAGEMENT TEAMS WHICH COULD THREATEN UNIONS I DON'T KNOW HOW LONG LABOR IS GOING TO BE FAIRLY COMPLIANT SAYS MARJORIE ALLEN OF THE STATE COUNTY AND MUNICIPAL EMPLOYEES UNION THE OIL WORKERS' ROBERT WAGES FRETS THAT THE WHITE HOUSE INTENDS TO OUTREPUBLICAN THE REPUBLICANS BUSINESS MEANWHILE GRUMBLES THAT THE ADMINISTRATION IS IN THE POCKET OF THE UNIONS SEVERAL SENIOR DOMESTICPOLICY OFFICIALS ARE FORMER UNION OFFICERS LABOR SECRETARY ROBERT REICH WILL IN ALL LIKELIHOOD BE REMEMBERED AS SECRETARY OF ORGANIZED LABOR' SAYS MARTIN PAYSON OF UNIONFIGHTING FIRM JACKSON LEWIS SCHNITZLER & KRUPMAN BOTH SIDES FAULT THE ADMINISTRATION'S STANCE ON THE MINIMUM WAGE BUSINESS LAMENTS THAT THE WHITE HOUSE WANTS TO RAISE IT UNIONS SNARL ABOUT DELAYS IN SEEKING A BOOST LOOKING FOR DANGER JOIN THE INTERIOR DEPARTMENT A NEW CONGRESSIONAL STUDY SAYS THAT AGENCY HAS THE WORST OCCUPATIONAL HEALTH AND SAFETY RECORD IN THE FEDERAL GOVERNMENT ITS LOST TIME RATE FOR ILLNESS AND INJURIES IS 67 HIGHER THAN THE US AVERAGE PARTLY DUE TO EXPOSURE TO CHEMICALS ON POLLUTED FEDERAL LANDS UNIONS USE THE DEATHS OF STRIKING STEELWORKERS TO PLEAD FOR THE STRIKERREPLACEMENT BILL TWO PICKETERS AT A NATIONAL STANDARD PLANT IN COLUMBIANA ALA WERE KILLED THIS MONTH WHEN A TRUCK RAN OVER THEM THE UNION PLANS A MEMORIAL SERVICE AND RALLY HEY BOSSES LISTEN TO THIS WHILE TOP BOSSES WHO LISTEN TO MANAGERS GET MORE OUT OF THE SUPERVISORS THINGS MAY NOT BE AS SIMPLE FURTHER DOWN THE LADDER A STUDY BY UNIVERSITY OF DAYTON PROFESSOR TERESA THOMPSON SHOWS THE LOOK AT A TOOLMAKING FIRM INDICATES HOURLY WORKERS WHO FEEL THEIR BOSSES LISTEN WELL ARE LESS LIKELY TO COME TO WORK AND ARE LESS PRODUCTIVE OLDER WORKERS GET OFFERS FOR BUYOUTS BUT TURN THEM DOWN ABOUT 6 OF US WORKERS NEARING RETIREMENT AGE HAVE RECEIVED OFFERS TO RETIRE EARLY ACCORDING TO A UNIVERSITY OF MICHIGAN SURVEY THREEFIFTHS OF THEM REJECTED THE OPTION EARLYRETIREMENT OFFERS AVERAGED 29000 IN CASH BONUSES AND AN ADDITIONAL 4000 A YEAR SAYS MICHIGAN ECONOMIST CHARLES BROWN THE STUDY LOOKED AT NEARLY 13000 PEOPLE CLASS AND RACIAL DIFFERENCES EMERGE PEOPLE RECEIVING OFFERS ON AVERAGE HAVE ONE MORE YEAR OF SCHOOLING AND ARE MORE LIKELY TO BE WHITE MARRIED AND MALE MORE OFTEN THEY ARE MANAGERS WORK FOR BIGGER FIRMS AND ARE PAID MORE THAN THOSE WHO DON'T GET BUYOUT OFFERS NEARLY A FIFTH RECEIVED MORE THAN ONE OFFER FROM THEIR EMPLOYERS AT LEAST HALF OF EARLY RETIREES WENT TO WORK SOMEWHERE ELSE MR BROWN FOUND WORKING AN AVERAGE 31 HOURS A WEEK14 FEWER THAN PRERETIREMENT THE CHECKOFF FOUR OF FIVE FEMALE GRADUATING MBAS WANT FOREIGN POSTS AT SOME POINT BUT JUST 3 OF OVERSEAS MANAGERS ARE WOMEN SAYS MCGILL UNIVERSITY PROFESSOR NANCY ADLER THE POSTAL SERVICE WILL UNVEIL A GEORGE MEANY STAMP AT THE AFLCIO CONVENTION IN SAN FRANCISCO NEXT WEEK 9309280026 930928 DIVIDEND NEWS TACO CABANA INC TACO CABANA INC SAN ANTONIO TEXAS SAID ITS BOARD DECLARED A 3FOR2 STOCK SPLIT PAYABLE OCT 18 TO STOCK OF RECORD OCT 7 AS OF JULY 3 THE RESTAURANT CHAIN HAD 76 MILLION SHARES OUTSTANDING 9309280025 930928 BUSINESS BRIEF SCHLUMBERGER LTD PACT TO SELL APPLICON UNIT TO LOS ANGELES FIRM IS SET SCHLUMBERGER LTD SAID IT REACHED AN AGREEMENT TO SELL ITS APPLICON INC UNIT TO CLOSELY HELD GORES ENTERPRISES INC LOS ANGELES TERMS WEREN'T DISCLOSED APPLICON A SUPPLIER OF COMPUTERAIDED DESIGN AND MANUFACTURING SOFTWARE HAD ABOUT 70 MILLION IN REVENUE LAST YEAR SCHLUMBERGER SAID SCHLUMBERGER ACQUIRED APPLICON IN EARLY 1982 FOR 222 MILLION IN A STOCK SWAP WHILE THE UNIT PROVIDED QUALITY COMPUTERAIDED DESIGN AND MANUFACTURING ANALYSTS BELIEVE THE OPERATION STRAYED TOO FAR FROM SCHLUMBERGER'S PRIMARY OIL EXPLORATION AND PRODUCTION EFFORTS APPLICON IS A WELLRECEIVED COMPANY BUT THE BUSINESS MAY FALL OUTSIDE SCHLUMBERGER'S NORMAL MARKET SAID VICTOR HUGHES AN ANALYST WITH DUFF & PHELPS THEY PROBABLY FOUND THEY COULD GET A BETTER VALUE FROM THE OPERATION BY SELLING IT SCHLUMBERGER BASED IN NEW YORK HAD 645 BILLION IN SALES IN 1992 9309280024 930928 WHO'S NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ ANN MARIE FUDGE 42 YEARS OLD EXECUTIVE VICE PRESIDENT OF GENERAL FOODS USA A UNIT OF THE FOOD SUBSIDIARY OF PHILIP MORRIS COS WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF AUTOMOTIVE AND AEROSPACE PRODUCTS AND ENGINEERED MATERIALS INCREASING THE BOARD TO 14 9309280023 930928 FOREIGN EXCHANGE MARK GAINS AGAINST DOLLAR ON BELIEF THAT RUSSIAN CRISIS IS UNDER CONTROL BY TIMOTHY MAPES SPECIAL TO THE WALL STREET JOURNAL NEW YORK JUDGING THE RUSSIAN POLITICAL CRISIS TO BE UNDER CONTROL INVESTORS TIPTOED BACK TO THE MARK MONDAY BOOSTING IT AGAINST THE DOLLAR AND MOST OTHER MAJOR CURRENCIES BUT THE US CURRENCY GAINED A BIT AGAINST THE YEN AS PLAYERS SHIED AWAY FROM TAKING NEW POSITIONS AHEAD OF A MEETING BETWEEN PRESIDENT BILL CLINTON AND JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA LATE MONDAY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16290 MARKS DOWN FROM 16395 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10605 YEN UP FROM 10585 YEN STERLING WAS TRADING AT 15130 UP FROM 15080 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10598 YEN AND AT 16298 MARKS TRADERS SAID THAT WITH NEWS OUT OF RUSSIA INDICATING THAT RUSSIAN PRESIDENT BORIS YELTSIN HAS THE UPPER HAND IN HIS CONFRONTATION WITH THE HARDLINE PARLIAMENT PLAYERS BEGAN TO BUY BACK THE MARKS THEY SOLD LAST WEEK ON REPORTS OF VIOLENCE THAT LED TO TWO DEATHS THEY NOTED THAT REPORTS THAT AT LEAST 10000 PEOPLE MARCHED IN SUPPORT OF YELTSIN CONTRASTED SHARPLY WITH THE DWINDLING NUMBERS OF SUPPORTERS ENCAMPED AROUND THE DEFIANT PARLIAMENT SUGGESTING THAT OPPOSITION TO MR YELTSIN COULD FIZZLE OUT WITHOUT FURTHER BLOODSHED THE LONGER YELTSIN SHOWS HIS FACE IN THE MEDIA AND SEEMS TO HAVE CONTROL THE LESS DOLLARBUYING THERE WILL BE BECAUSE OF THE RUSSIAN SITUATION SAID CARL AMENDOLA VICE PRESIDENT AT BAYERISCHE HYPOTHEKENUND WECHSELBANK AG IN NEW YORK BUT MR AMENDOLA AND OTHER TRADERS NOTED THAT THE MARK FAILED TO RECOUP ALL ITS LOSSES FROM LAST WEEK AS PLAYERS ARE STILL UNWILLING TO BUY THE GERMAN CURRENCY AGGRESSIVELY UNTIL THE RUSSIAN SITUATION IS FIRMLY SETTLED IT'S REALLY PREMATURE TO MAKE ANY CONCLUSIONS SAID NORI CATO VICE PRESIDENT AT INDUSTRIAL BANK OF JAPAN FROM THESE LEVELS THE MARK MAY HAVE A TOUGH TIME MOVING HIGHER THE MARK IS USUALLY SEEN AS VULNERABLE TO POLITICAL TURMOIL IN EASTERN EUROPE DUE TO GERMANY'S GEOGRAPHICAL PROXIMITY AND CLOSE ECONOMIC TIES WITH THAT REGION THE DOLLAR ON THE OTHER HAND OFTEN BENEFITS FROM POLITICAL UNREST OVERSEAS AS TURMOIL PROMPTS PLAYERS TO SEEK SHELTER IN THE DOLLAR BUT IF THE RUSSIAN UNCERTAINTY LIFTS TRADERS SAID THE MARKET WILL RETURN TO ITS PREVIOUS FOCUS ON THE ECONOMIC SITUATION IN THE US THAT THEY SAID WILL PLACE RENEWED INTEREST ON A ROUND OF US ECONOMIC INDICATORS DUE THIS WEEK TRADERS SAID THAT TUESDAY'S RELEASE OF A CONFERENCE BOARD SURVEY OF CONSUMER CONFIDENCE AND THURSDAY'S CHICAGO PURCHASING MANAGERS INDEX WILL BE AMONG THE MOST CAREFULLY WATCHED OF A BATCH OF PENDING DATA THEY SAID THAT TRADERS WILL BE SEEKING SOME CONFIRMATION OF LAST WEEK'S BULLISH REPORT ON US HOUSING STARTS WHICH SOME TRADERS LAST WEEK SAW AS A SIGN OF RENEWED US ECONOMIC VIGOR PERHAPS THERE'S SOME RENEWED OPTIMISM BUT THE JURY IS STILL OUT SAID RICHARD VULLO DIRECTOR OF FOREIGN EXCHANGE AT BANK OF MONTREAL IN NEW YORK THE DOLLAR GAINED SLIGHTLY AGAINST THE YEN MONDAY AFTER A WEEKEND MEETING OF THE GROUP OF SEVEN G7 FINANCE MINISTERS AND CENTRAL BANKERS ENDED WITHOUT ANY CALLS FOR A HIGHER YEN THE ABSENCE OF SUCH A DEVELOPMENT SUGGESTED TO TRADERS THAT THE POLITICAL PRESSURE THAT SPARKED A SHARP RALLY IN THE YEN EARLIER THIS YEAR MAY HAVE ENDED 9309280022 930928 BUSINESS BRIEF PROVIDENCE HEALTH CARE INC INVESTMENT BANK IS SEEKING APPROVAL TO REMOVE BOARD INVESTMENT BANKING FIRM COMMONWEALTH ASSOCIATES BEGAN SEEKING SHAREHOLDER APPROVAL TO REMOVE THE BOARD OF PROVIDENCE HEALTH CARE INC A FORMER CLIENT COMMONWEALTH WHICH CONTROLS 59 OF PROVIDENCE SHARES OUTSTANDING HAS 60 DAYS TO WIN THE CONSENT OF MORE THAN 50 OF PROVIDENCE HOLDERS OF RECORD AUG 27 COMMONWEALTH WHICH SERVED AS MANAGING UNDERWRITER FOR PROVIDENCE'S 1992 INITIAL PUBLIC OFFERING SAID IT IS DISAPPOINTED WITH MANAGEMENT AND THE COMPANY'S OPERATING RESULTS AND POOR STOCK PERFORMANCE IT SAID IT ALSO IS COMMITTED TO REDUCING THE PAY OF EXECUTIVES AT PROVIDENCE A BEREA OHIO OPERATOR OF NURSINGCARE FACILITIES COMMONWEALTH SAID ITS NOMINEES TO THE BOARD WOULD INVESTIGATE A SALE OR MERGER OF THE COMPANY IN OVERTHECOUNTER TRADING YESTERDAY PROVIDENCE SHARES ROSE ALMOST 19 TO 475 UP 75 CENTS A SHARE PROVIDENCE SAID THIS MONTH THAT IT HAD SECURED CONSENTS FROM HOLDERS OF MORE THAN 50 OF ITS SHARES SUPPORTING THE CURRENT BOARD A FIGURE COMMONWEALTH HAS DISPUTED 9309280021 930928 WHO'S NEWS JEFFERSONPILOT CORP JEFFERSONPILOT CORP GREENSBORO NC DENNIS R GLASS 44 YEARS OLD WAS APPOINTED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS INSURANCE COMPANY MR GLASS MOST RECENTLY SERVED AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF PROTECTIVE LIFE CORP IN BIRMINGHAM ALA HE SUCCEEDS THOMAS FEE 65 WHO IS RETIRING IN NOVEMBER AS TREASURER AND SENIOR VICE PRESIDENT 9309280020 930928 TECHNOLOGY BRIEF ORACLE CORP NEW SOFTWARE ITEMS OFFER IMPROVEMENTS FIRM SAYS ORACLE CORP SAID IT PLANS TO INTRODUCE TWO NEW SOFTWARE PRODUCTS THAT MANAGE THE COMPANY'S DATABASE SOFTWARE BY ADDING FEATURES SUCH AS ELECTRONIC MAIL AND MAKING MORE EFFICIENT USE OF MULTIPROCESSING COMPUTER SYSTEMS ORACLE A MAJOR MAKER OF DATABASEMANAGEMENT SOFTWARE HAS CONCENTRATED ON SERVER SYSTEMS WHICH STORE AND MANAGE INFORMATION THE REDWOOD CITY CALIF COMPANY SAID ITS NEW ORACLE OFFICE SOFTWARE WILL EXPAND THAT CAPABILITY BY ALLOWING DESKTOP PCS TO MANAGE ELECTRONIC MAIL AND SCHEDULING WITHIN A SINGLE COMPUTER NETWORK THE COMPANY SAID IT ALSO WILL INTRODUCE A SECOND SOFTWARE PACKAGE CALLED THE ORACLE7 PARALLEL QUERY THAT WILL ENABLE COMPUTER USERS TO SPEED UP THE OPERATION OF ORACLE'S DATABASE ON MULTIPROCESSOR SERVERS WHICH LINK COMPUTERS OR MICROPROCESSORS FOR MORE SPEED THE SOFTWARE WOULD BE MADE MORE EFFICIENT BY SPLITTING TASKS AND ASSIGNING THEM TO INDIVIDUAL PROCESSORS WITHIN THE COMPUTER UNIT THE COMPANY ADDED 9309280019 930928 STRIDE RITE AGREES TO SETTLE CHARGES IT TRIED TO FORCE PRICING BY RETAILERS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL STRIDE RITE CORP AGREED TO PAY 72 MILLION TO SETTLE CHARGES THAT THE COMPANY CUT SHIPMENTS OF ITS POPULAR KEDS SHOES TO RETAILERS THAT WOULDN'T AGREE TO CHARGE FULL LIST PRICE THE ANTITRUST SETTLEMENT OF FEDERAL CHARGES BROUGHT BY THE NEW YORK ATTORNEY GENERAL WAS THE LATEST IN A SERIES OF STATE ACTIONS AGAINST CONSUMERGOODS MAKERS WHO ATTEMPT TO ENFORCE PREMIUM PRICES FOR THEIR PRODUCTS THE SETTLEMENT AMONG THE LARGEST IN THE FOOTWEAR INDUSTRY MAY ALSO FORESHADOW TIGHTER GOVERNMENT SCRUTINY ON THE ATHLETIC SHOE INDUSTRY WHICH IS RIFE WITH ALLEGATIONS OF SIMILAR PRICEFIXING ARRANGEMENTS FOUR YEARS AGO NEW BALANCE ATHLETIC SHOE INC SETTLED A SIMILAR SUIT WITH THE PENNSYLVANIA ATTORNEY GENERAL FOR A RELATIVELY SMALL 43000 BUT WITH STRIDE RITE THE FEDERAL TRADE COMMISSION AND ATTORNEYS GENERAL FROM 50 STATES JOINED AS PLAINTIFFS FOLLOWING AN INVESTIGATION THAT BEGAN IN NEW YORK THE SETTLEMENT FOLLOWS OTHERS IN 1991 BY NINTENDO CO AND MITSUBISHI ELECTRIC CORP BOTH OF WHICH WERE ALSO INVESTIGATED BY THE ANTITRUST DIVISION OF NEW YORK ATTORNEY GENERAL ROBERT ABRAMS FOR ALLEGED PRICE FIXING NINTENDO SETTLED FOR 25 MILLION AND MITSUBISHI 8 MILLION WE BELIEVE THAT THE PRICING PROBLEM IS FAR MORE WIDESPREAD THAN THE KEDS CASE SAID NANCY CONNELL SPOKESWOMAN FOR MR ABRAMS SHE WOULDN'T SAY IF ANY OTHER FOOTWEAR COMPANIES ARE UNDER INVESTIGATION BUT ADDED THAT THE ANTITRUST BUREAU HERE IS LOOKING AT PRICING PRACTICES IN THE ATHLETIC SHOE INDUSTRY STRIDE RITE BASED IN CAMBRIDGE MASS SAID IN A NEWS RELEASE THAT THE SETTLEMENT WASN'T AN ADMISSION OF GUILT INSISTING THAT ITS PRICING POLICY WAS ENTIRELY LAWFUL LAST SPRING AND SUMMER SOME RETAILERS WERE OFFERING THE KEDS SHOES AT VERY LOW PRICES AND WE FELT WE HAD TO DO SOMETHING TO STOP THE TREND SAID JOHN KELLIHER VICE PRESIDENT OF FINANCE AT STRIDE RITE IN THE COMPLAINT FILED IN FEDERAL COURT IN MANHATTAN PROSECUTORS ALLEGED THAT BEGINNING LAST YEAR STRIDE RITE COERCED STORES INTO SELLING SIX STYLES OF KEDS WOMEN'S ATHLETIC SHOES AT SUGGESTED RETAIL PRICES OF 20 TO 45 A PAIR SHIPMENTS WERE CURTAILED OR CUT OFF AFTER RETAILERS BALKED THE COMPLAINT SAID LEADING SOME RETAILERS IN THE MIDWEST AND NEW YORK TO COMPLAIN TO MR ABRAMS'S OFFICE SOME ATTORNEYS SAY THAT MANUFACTURERS COMMONLY TAKE AN ACTIVE ROLE IN SUGGESTING RETAIL PRICES BUT NOTE THAT THEY OFTEN WALK A FINE LINE IN DOING SO UNDER CASE LAW IT'S LEGITIMATE FOR A MANUFACTURER TO ANNOUNCE IN A WIDELY DISTRIBUTED LETTER THAT THEY WON'T DO BUSINESS WITH A RETAILER WHO WANTS TO DISCOUNT SAID KEVIN NASCA ASSISTANT ATTORNEY GENERAL FOR MASSACHUSETTS IT'S WHEN THEY GO BEYOND THAT POINT AND REACH AN AGREEMENT ORAL OR WRITTEN TO RAISE THE SELLING PRICE THAT THEY GET INTO TROUBLE THAT'S WHAT STRIDE RITE DID MR NASCA ALLEGES HE SAYS THE COMPANY SOLICITED STORES INDIVIDUALLY AND GOT THEM TO AGREE TO KEEP PRICES OF THE KEDS LINE AT SUGGESTED RETAIL LEVELS STRIDE RITE ALSO ASSIGNED SALESPEOPLE TO MONITOR PRICES TO ENSURE COMPLIANCE THE COMPLAINT SAYS PRESSURES ARE SUBTLE BUT RATHER COMMON SAID JOHN HORAN PUBLISHER OF SPORTING GOODS INTELLIGENCE AN INDUSTRY NEWSLETTER COMPANIES DO IT IN A NUMBER OF WAYS HE SAID THEY TELL YOU THEY WON'T HELP YOU ADVERTISE THE SHOE OR THEY SAY WE'LL PUT YOU AT THE BOTTOM OF THE LIST WITH HOT PRODUCTS IN STRIDE RITE'S CASE MANY RETAILERS AND SEVERAL DEPARTMENT STORES FACING SOFT BUSINESS BEGAN DISCOUNTING KEDS SHOES BECAUSE OF ITS GOOD BRAND NAME IN AN EFFORT TO ATTRACT CUSTOMERS INTO THE STORE STRIDE RITE SAID IT DECIDED TO RESOLVE THE ISSUE EXPEDITIOUSLY TO AVOID COSTLY LITIGATION AND DISRUPTIONS TO ITS BUSINESS AS A RESULT OF THE SETTLEMENT STRIDE RITE TOOK A CHARGE OF 43 MILLION OR EIGHT CENTS A SHARE AND REPORTED THIRDQUARTER NET INCOME OF 184 MILLION OR 36 CENTS A SHARE THAT WAS DOWN 11 FROM 207 MILLION OR 40 CENTS A SHARE A YEAR EARLIER SALES FELL SLIGHTLY TO 1665 MILLION FROM 1684 MILLION BECAUSE THE DISCOUNTING ON THE KEDS LINE WAS SMALL AND CONSUMERS WOULD ON AVERAGE RECEIVE A REBATE OF 1 A PAIR PROSECUTORS IN THE CASE ARRANGEMENT FOR STRIDE RITE TO CONTRIBUTE 57 MILLION OF THE SETTLEMENT TO CHARITY WITH THE REST GOING TO PAY FOR ADMINISTRATIVE EXPENSES 9309280018 930928 WHO'S NEWS JLG INDUSTRIES INC JLG INDUSTRIES INC MCCONNELLSBURG PA GEORGE R KEMPTON 59 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MAKER OF HYDRAULIC MACHINERY MR KEMPTON IS CHAIRMAN AND CHIEF EXECUTIVE OF KYSOR INDUSTRIAL CORP CADILLAC MICH HE SUCCEEDS JOHN L GROVE 72 WHO RESIGNED THIS MONTH AS PART OF A SETTLEMENT OF A LONGRUNNING DISPUTE WITH THE COMPANY HE COFOUNDED 9309280017 930928 CLINTON LIKELY TO PUSH PENSION FUNDING PLAN TASK FORCE RECOMMENDS FORCING FIRMS TO MAKE CONTRIBUTIONS FASTER BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS EXPECTED TO INTRODUCE LEGISLATION THAT WOULD FORCE COMPANIES TO BANKROLL MORE QUICKLY NEARLY 40 BILLION OF PENSIONPLAN UNDERFUNDING THE PROPOSAL WHICH WAS DRAFTED BY A TASK FORCE OVER THE PAST SIX MONTHS IS LIKELY TO SEEK TO CLOSE LEGAL LOOPHOLES THAT HAVE ALLOWED MANY COMPANIES TO MAINTAIN DEEPLY UNDERFUNDED PENSION PLANS EMPLOYERS WITH UNDERFUNDED PENSION PLANS CAN AND DO CONTRIBUTE LITTLE OR NOTHING MARTIN SLATE EXECUTIVE DIRECTOR OF THE PENSION BENEFIT GUARANTY CORP DECLARED IN A RECENT SPEECH UNDERFUNDING NOT ONLY THREATENS THE PENSIONS OF MANY FUTURE RETIREES BUT IT COULD ALSO BOOST FUTURE DEMANDS ON THE PBGC WHICH INSURES SOME 900 BILLION IN DEFINEDBENEFIT PENSION FUNDS BETWEEN 1987 AND 1991 THE PBGC SAID UNDERFUNDING FOR SINGLEEMPLOYER PLANS CLIMBED TO 38 BILLION FROM 27 BILLION MR SLATE SAID THAT THE FIGURE IS EXPECTED TO RISE EVEN HIGHER FOR 1992 MOREOVER DEEPLY UNDERFUNDED PLANS NOW ACCOUNT FOR 80 OF THE TOTAL UNDERFUNDING BUT PAY ONLY 25 OF PBGC PREMIUMS BUT PRESIDENT CLINTON IS LIKELY TO FACE STRONG OPPOSITION OVER THE PROPOSAL WHICH IS STILL SUBJECT TO CHANGE BEFORE IT IS UNVEILED POSSIBLY AS EARLY AS THIS WEEK LABOR UNIONS AND MANY LARGE EMPLOYERS WITH UNDERFUNDED PLANS ARE EXPECTED TO FIGHT SOME OF THE PROVISIONS THE BUSH ADMINISTRATION LAST YEAR RAN INTO OPPOSITION WHEN IT TRIED TO GET SUPPORT FOR A PROPOSAL THAT LANGUISHED ON CAPITOL HILL WHILE THE CLINTON ADMINISTRATION BELIEVES CONGRESS IS MORE RECEPTIVE TOWARD TACKLING THE PROBLEM IT WOULD BE ONE OF MANY MAJOR PIECES OF LEGISLATION PRESIDENT CLINTON IS TRYING TO PUSH INCLUDING HEALTHCARE REFORM AND THE NORTH AMERICAN FREE TRADE AGREEMENT UNDER THE TASKFORCE DRAFT THE PRACTICE OF DOUBLE COUNTING PERMITTED UNDER A 1987 LAW WOULD BE ENDED COMPANIES USE DOUBLE COUNTING TO REDUCE BOTH THE MINIMUM CONTRIBUTION REQUIRED FOR ALL PENSION PLANS AND A SEPARATE SOCALLED DEFICITREDUCTION CONTRIBUTION THAT UNDERFUNDED PLANS ARE REQUIRED TO MAKE UNDER THIS SYSTEM THE PLAN'S FINANCIAL GAINS WHICH REFLECT ASSET IMPROVEMENTS AND LIABILITY REDUCTIONS BEYOND THE ORIGINAL ESTIMATES ARE COUNTED TWICE THUS REDUCING A COMPANY'S TOTAL CONTRIBUTION TO THE PENSION PLAN IT WOULD CHANGE THE WAY FUTURE INTEREST RATES ARE CALCULATED AS WELL AS THE AGE AT WHICH RETIREE DEATHS ARE FIGURED IN ADDITION THE PROPOSAL WOULD SHORTEN THE TIME GIVEN TO COMPANIES TO COVER SHORTFALLS IN THEIR PENSION PLANS AND IT WOULD REQUIRE ADDED CONTRIBUTIONS WHEN LUMPSUM PAYMENTS FOR EARLY RETIREMENTS OR OTHER PAYOUTS THREATEN TO OUTSTRIP CONTRIBUTIONS TO THE FUNDS THE REGULAR DEFICITREDUCTION CONTRIBUTION WOULD BE APPLIED TO PENSION PLANS THAT ARE FUNDED 60 OR LESS A LOWER CONTRIBUTION WOULD BE REQUIRED FOR PLANS THAT ARE FUNDED MORE THAN 60 BUT LESS THAN 100 THE REGULAR DEFICITCUTTING CONTRIBUTION NOW APPLIES ONLY TO PLANS THAT ARE FUNDED 35 OR LESS PLANS THAT ARE FUNDED MORE THAN 35 BUT LESS THAN 100 CONTRIBUTE A LOWER AMOUNT IN ADDITION BALANCE SHEETS WOULD HAVE TO REFLECT PENSIONBENEFIT INCREASES IN MULTIYEAR LABOR CONTRACTS IN THE YEAR THEY ARE NEGOTIATED WITH THE INCREASES ACCOUNTED FOR OVER A SHORTER PERIOD OF TIME CURRENTLY PLANS DON'T HAVE TO SHOW THE INCREASES UNTIL THE YEAR THEY TAKE EFFECT WITH A LONGER AMORTIZATION PERIOD THE TASK FORCE DECIDED AGAINST ADOPTING A PROPOSAL MADE DURING THE BUSH ADMINISTRATION THAT WOULD GENERALLY BAR THE PBGC FROM GUARANTING PENSION BOOSTS BY UNDERFUNDED PLANS AND DESPITE THE PROVISIONS TO SPEED UP THE FUNDINGS THE TASK FORCE IS EXPECTED TO RECOMMEND THAT LIMITS BE PLACED ON HOW MUCH TO INCREASE THE ANNUAL DEFICITREDUCTION CONTRIBUTION THROUGH THE YEAR 2001 THE PROPOSAL WOULD SEEK TO PROD PENSION PLANS TO NARROW UNDERFUNDING GAPS BY LIFTING THE CAP ON THE INSURANCE PREMIUM RATES PAID BY UNDERFUNDED PLANS POSSIBLY OVER THREE YEARS CURRENTLY THE BASIC PREMIUM RATE FOR ALL PENSION PLANS IS 19 PER WORKER AND RETIREE WITH AN ADDITIONAL PREMIUM OF AS MUCH AS 53 A PARTICIPANT REQUIRED OF UNDERFUNDED PLANS WITHOUT A CAP THE PBGC ESTIMATES THAT THE RATE FOR UNDERFUNDED PLANS AT THE CURRENT CAP WOULD AVERAGE 125 PER PARTICIPANT MARK UGORETZ PRESIDENT OF THE ERISA INDUSTRY COMMITTEE AN EMPLOYER GROUP APPLAUDED THE CLINTON ADMINISTRATION'S EFFORTS TO FORCE COMPANIES TO FUND THEIR PLANS JAMES KLEIN EXECUTIVE DIRECTOR OF THE ASSOCIATION OF PRIVATE PENSION AND WELFARE PLANS AGREED THAT BY AND LARGE OUR MEMBERS ARE FAIRLY COMFORTABLE WITH THE FUNDING PROVISIONS BUT HE ADDED IT GOES WAY BEYOND WHAT LARGE UNDERFUNDED EMPLOYERS WOULD TELL YOU IS ACCEPTABLE MOST OF THE COMPANIES IN BOTH GROUPS ARE FULLY FUNDED AND FACE A BIGGER INSURANCE BURDEN IF OTHER PLANS ARE UNDERFUNDED 9309280016 930928 GTE WILL REDEEM REFINANCE 21 BILLION OF HIGHINTEREST DEBT STAMFORD CONN GTE CORP WHICH HAD PUZZLED SOME ANALYSTS BY ITS DECISION TO NOT JOIN THE RUSH TO REFINANCE HIGHINTEREST DEBT EARLIER THIS YEAR SAID IT WILL REDEEM AND REFINANCE 21 BILLION OF DEBT THE TELECOMMUNICATIONS COMPANY SAID IT EXPECTS TO REAP 250 MILLION IN SAVINGS DURING THE PERIOD THE HIGHCOUPON BONDS WOULD HAVE BEEN OUTSTANDING THE BONDS HAD BEEN ISSUED BY FIVE OF GTE'S TELEPHONE OPERATING UNITS GTE SAID IT WILL TAKE A THIRDQUARTER CHARGE OF 90 MILLION OR 10 CENTS A SHARE REFLECTING THE EXPENSES OF CALLING THE BONDS GTE EARNED 500 MILLION OR 55 CENTS A SHARE IN THE YEAREARLIER QUARTER IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY GTE SHARES ROSE 625 CENTS TO 38625 GTE SAID THE BONDS WHOSE COUPON RATES CURRENTLY VARY FROM 7875 TO 1175 WILL BE REDEEMED IN EARLY NOVEMBER THE REFINANCING WILL PROVIDE THE COMPANY WITH INTEREST SAVINGS OF 9 MILLION THIS YEAR AND ANNUAL SAVINGS OF 36 MILLION IN FUTURE YEARS A COMPANY SPOKESMAN SAID WHEN YOU LOWER INTEREST COSTS BY THAT MUCH YOU STRENGTHEN THE ABILITY TO MAKE TIMELY PAYMENTS OF INTEREST EXPENSE TO BONDHOLDERS SAID TIMOTHY CAIN ANALYST AT FITCH INVESTORS SERVICE HE SAID GTE'S MOVE WAS ALSO LIKELY TO SUBSTANTIALLY ENHANCE THE CREDIT QUALITY OF THE COMPANY'S DEBT ALTHOUGH SEVERAL REGIONAL PHONE COMPANIES HAD REFINANCED THEIR DEBT IN THE FIRST QUARTER TO TAKE ADVANTAGE OF LOW INTEREST RATES GTE HAD HELD OUT ARGUING THAT IT DID NOT BASE ITS REFINANCING DECISIONS ON MARKET TIMING HOWEVER INTEREST RATES FOR HIGHCOUPON BONDS HAVE FALLEN ABOUT ONE PERCENTAGE POINT SINCE THE FIRST QUARTER WHICH MEANS GTE HAS SAVED ABOUT 21 MILLION ANNUALLY AS A RESULT OF DELAYING ITS REFINANCING THE REFINANCING BRINGS TOTAL REDEMPTION OF HIGHCOUPON DEBT BY GTE AND ITS UNIT TO 43 BILLION SINCE EARLY 1992 THE GTE SPOKESMAN SAID THE COMPANY HAD NO PLANS TO CALL ADDITIONAL BONDS THIS YEAR GTE'S DEBT CURRENTLY TOTALS 16 BILLION OF WHICH 133 BILLION IS LONGTERM DEBT 9309280015 930928 MONDAY'S MARKETS STOCK PRICES ARE BOOSTED BY BONDS INDUSTRIALS GAIN 2459 AS 30YEAR TREASURY RISES OVER 1 1/8 POINTS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A POWERFUL BONDMARKET RALLY HELPED DRIVE STOCK PRICES HIGHER THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SURGED 2459 POINTS TO 356770 STANDARD & POOR'S 500STOCK INDEX GAINED 417 TO 46180 AND THE NASDAQ COMPOSITE INDEX JUMPED 530 TO A RECORD 75995 ANALYSTS SAID BOND TRADERS WERE ENCOURAGED BY A REPORT FRIDAY THAT THE FEDERAL RESERVE'S OPEN MARKET COMMITTEE DECIDED TO SHIFT TO A NEUTRAL STANCE ON INTEREST RATES A CHANGE FROM ITS BIAS TOWARD TIGHTENING ALSO BOOSTING BOND PRICES WAS A WEAKERTHANEXPECTED REPORT ON AUGUST SALES OF EXISTING HOUSES THE RALLY PUSHED THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND BELOW 6 TO 594 BUT ANALYSTS WERE RELUCTANT TO SEE THE MOVE AS HERALDING SIGNIFICANT FURTHER DECLINES DONALD MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIA MCLEOD USA EXPECTS THE LONG BOND TO WAFFLE IN A TRADING RANGE BETWEEN 585 AND 615 A TRADINGRANGE MENTALITY HAS PERVADED THE MARKET FOR THE LAST TWO WEEKS MR MAUDE SAID WE COULD STAY IN A TRADING RANGE FOR THE NEXT MONTH OR SO HE SAID ECONOMIC DATA RELEASED IN COMING WEEKS WON'T GIVE A CLEAR PICTURE OF THE ECONOMY AS A RESULT A TUG OF WAR BETWEEN BULLS AND BEARS WILL LEAVE THE BOND MARKET LOCKED IN ITS NARROW RANGE TO BREAK OUT OF THAT RANGE IT WOULD TAKE SOLID EVIDENCE OVER THE COURSE OF MORE THAN A MONTH THAT THE ECONOMY IS EITHER FALTERING OR ACCELERATING DRAMATICALLY MR MAUDE SAID I DON'T SEE INDICATIONS POINTING IN EITHER DIRECTION OVER THE NEXT SEVERAL MONTHS STOCK PRICES RODE THE BOND MARKET'S COATTAILS INVESTORS IGNORED THE WEAK HOUSING DATA AND FOCUSED INSTEAD ON LOWER INTEREST RATES JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAID SIGNS THAT THE ECONOMY CONTINUES TO IMPROVE SLOWLY WITH LITTLE DANGER OF COLLAPSE ARE POSITIVE FOR STOCKS INTEREST RATES WILL DECLINE BUT EARNINGS WON'T BE HURT WE HAVE AN IDEAL SET OF CIRCUMSTANCES IN WHICH THE STOCK MARKET MAY FOOL PEOPLE MR MCALINDEN SAID HE PREDICTED THAT AN EXPECTED AUTUMN CORRECTION MAY NOW BE DELAYED AS THE DOW INDUSTRIALS CLIMB TO A NEW HIGH OF AROUND 3700 BUT AS THE ECONOMY PICKS UP LATER IN THE SEASON INTEREST RATES WILL MOVE UP AND STOCKS WILL SUFFER MR MCALINDEN SAID WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 036 TO 11116 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2421 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1308 ISSUES ROSE AND 727 FELL BOND PRICES RALLIED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1 1/8 POINTS OR MORE THAN 1125 FOR EACH 1000 FACE AMOUNT TO YIELD 594 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16290 MARKS AND 10605 YEN COMPARED WITH 16395 MARKS AND 10585 YEN FRIDAY 9309280014 930928 WHAT'S NEWS WORLDWIDE CLINTON URGED THE UN TO DEFINE ITS PEACEKEEPING MISSIONS MORE CAREFULLY THE PRESIDENT IN HIS FIRST SPEECH TO THE GENERAL ASSEMBLY SIGNALED INCREASED US WARINESS ABOUT INTERNATIONAL PEACEKEEPING EFFORTS HE SAID THE UN NEEDED TO SCRUTINIZE SITUATIONS MORE CAREFULLY AND DEFINE ITS MISSION MORE PRECISELY BEFORE COMMITTING TROOPS IF THE AMERICAN PEOPLE ARE TO SAY YES' TO UN PEN SAID THEN THE UN MUST KNOW WHEN TO SAY NO' HE ALSO ANNOUNCED THAT THE US WOULD PAY ITS PEACEKEEPING ARREARAGES TO THE UN AS EXPECTED CLINTON SAID THE US WOULD PUSH FOR AN INTERNATIONAL ACCORD BANNING PRODUCTION OF PLUTONIUM AND ENRICHED URANIUM FOR NUCLEAR WEAPONS YELTSIN RULED OUT ANY COMPROMISE WITH HIS OPPONENTS IN RUSSIA'S PARLIAMENT THE RUSSIAN PRESIDENT APPARENTLY GAMBLING THAT HE CAN PREVAIL ON THE TERMS HE WANTS TO IMPOSE SAID IN A TELEVISED ADDRESS I NO LONGER AGREE TO ANY COMPROMISE WITH ANY BODY OF POWER HE REJECTED A COMPROMISE PROPOSAL CALLING FOR SIMULTANEOUS PRESIDENTIAL AND PARLIAMENTARY ELECTIONS PERHAPS FEARING THAT VOTERS WEARY AFTER 18 MONTHS OF POLITICAL STRIFE WILL DUMP HIM AS WELL AS HIS LEGISLATIVE FOES YELTSIN'S OPPONENTS HAVE BEEN WEAKENED BY DEFECTIONS AND MISERABLE CONDITIONS INSIDE PARLIAMENT WHERE THEY HAVE BEEN HOLED UP FOR A WEEK SEN KAY BAILEY HUTCHISON WAS INDICTED ALONG WITH TWO FORMER AIDES ON CHARGES OF MISCONDUCT DURING HER 2 1/2YEAR TENURE AS TEXAS STATE TREASURER HUTCHISON A REPUBLICAN ELECTED TO THE US SENATE JUST 16 WEEKS AGO WAS ACCUSED OF TAMPERING WITH GOVERNMENT RECORDS AND EVIDENCE SHE DENIED THE ALLEGATIONS STEPHEN HIGGINS SAID HE WOULD RETIRE AS DIRECTOR OF THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS THE AGENCY THAT CONDUCTED FEBRUARY'S ILLFATED RAID ON THE BRANCH DAVIDIAN CULT COMPOUND IN TEXAS HIS ANNOUNCEMENT CAME AMID A DISAGREEMENT WITH THE TREASURY DEPARTMENT WHICH WILL ISSUE A REPORT THIS WEEK ON THE RAID ABKHAZIAN SEPARATISTS CAPTURED SUKHUMI AFTER AN 11DAY ASSAULT FORCING GEORGIAN LEADER SHEVARDNADZE TO FLEE THE CITY WHICH HE HAD VOWED TO DEFEND HE BLAMED RUSSIA FOR THE DEFEAT SAYING MOSCOW HAD BEEN ASKED TO HELP SAVE THE CITY SUKHUMI WAS THE GEORGIAN GOVERNMENT'S LAST STRONGHOLD IN THE PROVINCE OF ABKHAZIA BOSNIA'S MUSLIM PRESIDENT TOLD AN ASSEMBLY OF HIS SUPPORTERS THEY FACED A BLEAK CHOICE EITHER SIGN AN UNJUST PEACE ACCORD OR BE STARVED INTO DEFEAT BY ANOTHER WINTER OF FIGHTING WITH SERB AND CROAT FORCES BOSNIA'S FULL PARLIAMENT PLANS TO VOTE TODAY ON THE GENEVA PEACE PLAN CARVING BOSNIA INTO THREE ETHNIC REGIONS NORTH KOREA REFUSED TO RESUME TALKS ON THE MONITORING OF ITS NUCLEAR FACILITIES DEEPENING SUSPICIONS THAT IT IS DEVELOPING NUCLEAR WEAPONS PYONGYANG STOPPED ALLOWING FULL INSPECTIONS OF ITS NUCLEAR FACILITIES IN MARCH THE COUNTRY HAS SINCE ANNOUNCED IT INTENDS TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY JAPAN SUPPORTS AN INDEFINITE EXTENSION OF THE NUCLEAR NONPROLIFERATION PACT PRIME MINISTER HOSOKAWA SAID IN A SPEECH TO THE UN GENERAL ASSEMBLY HIS STATEMENT REVERSED THE POLICY OF THE PREVIOUS GOVERNMENT WHICH SAID IT COULDN'T SUPPORT AN OPENENDED CONTINUATION OF THE AGREEMENT A NEW YORK MAN WAS SHOT TO DEATH ON A MIAMI HIGHWAY BY A MOTORIST WHO FIRED A SINGLE BULLET AT THE VICTIM THE APPARENTLY UNPROVOKED SLAYING SUNDAY NIGHT UNLEASHED A NEW FLURRY OF NEGATIVE PUBLICITY ABOUT CRIME IN FLORIDA WHERE TOURISM IS A 31 BILLIONAYEAR INDUSTRY THE US WILL SEND SOME 600 MILITARY CONSTRUCTION AND CIVILAFFAIRS SPECIALISTS TO HAITI BEGINNING THIS WEEK AS PART OF A UN PLAN TO RESTORE DEMOCRACY ADMINISTRATION OFFICIALS SAID THE FIRST NAVY VESSEL WITH 250 MEDICAL SPECIALISTS MILITARY TRAINERS AND LINGUISTS WILL LEAVE THURSDAY FROM NORFOLK VA ACCORDING TO ONE PENTAGON AIDE SOMALI GUNMEN FIRED GRENADES AT THE OFFICE OF THE UN ENVOY TO SOMALIA AND ATTACKED UN OFFICIALS REOPENING THE FIRST LAW COURT TO OPERATE IN MOGADISHU SINCE THE OUTBREAK OF CIVIL WAR IN 1991 THE ENVOY RETIRED US ADM JONATHAN HOWE ESCAPED UNHURT WHEN THREE GRENADES WERE FIRED INTO THE HEAVILY GUARDED UN COMPOUND 9309280013 930928 ABREAST OF THE MARKET STOCKS JUMP 2459 TAKING A CUE FROM BONDS AND OVERSEAS MARKETS BY ANITA RAGHAVAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FALLING INTEREST RATES AND BUOYANT OVERSEAS MARKETS SENT US STOCK PRICES CLIMBING BUTTRESSED BY HEAVY COMPUTERGUIDED BUY PROGRAMS AT THE OPENING THE DOW JONES INDUSTRIAL AVERAGE RACED UP 2459 POINTS TO 356770 MOST OF THE GAINS CAME IN DEEPLY DEPRESSED OIL STOCKS BANK SHARES AND A SMATTERING OF ECONOMICALLY SENSITIVE STOCKS CHEVRON 2 1/8 TO 93 1/4 JP MORGAN ROSE 1 3/8 TO 77 1/8 AND GENERAL ELECTRIC JUMPED 1 5/8 TO 96 1/2 STANDARD & POOR'S 500STOCK INDEX JUMPED 417 TO 46180 AND THE NASDAQ COMPOSITE INDEX SURGED 530 TO 75995 HITTING A RECORD FOR THE THIRD STRAIGHT SESSION THE RALLY CAME AS STOCK MARKETS IN EUROPE POSTED STRONG GAINS WITH GERMANY LEADING THE PACK ON THE BIG BOARD ADVANCING ISSUES OUTNUMBERED DECLINERS 1308 TO 727 VOLUME TOTALED 2421 MILLION SHARES UP SLIGHTLY FROM FRIDAY'S 2414 MILLION SHARES WE'VE SEEN A PRETTY SPECTACULAR MOVE IN STOCKS DURING THE LAST WEEK SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES HE NOTED THAT THE S&P 500 HAS ADVANCED TO WITHIN POINTS OF A NEW HIGH AFTER HITTING AN INTRADAY LOW OF 450 LAST WEEK TO A LARGE EXTENT YESTERDAY'S MOVE WAS TRIGGERED BY SHARP DECLINES IN INTEREST RATES THE YIELD ON THE TREASURY'S 30YEAR BOND DROPPED TO 594 FALLING BELOW THE PSYCHOLOGICALLY IMPORTANT 6 MARK FOR THE FIRST TIME SINCE SEPT 15 MR CANELO SAID BOND AND STOCK INVESTORS ARE SENDING MIXED MESSAGES ABOUT THE ECONOMY WHILE SOME ECONOMICALLY SENSITIVE STOCKS SNAPPED BACK YESTERDAY REFLECTING EXPECTATIONS THAT THE ECONOMIC RECOVERY IS ON TRACK BOND PRICES ROSE SHARPLY ON NEWS LATE FRIDAY THAT THE FEDERAL RESERVE HAD ABANDONED ITS STANCE TOWARD HIGHER INTEREST RATES AT ITS POLICYSETTING MEETING IN AUGUST THE FED'S MOVE SEEMED TO CONFIRM THE WIDESPREAD BELIEF THAT THE ECONOMY IS STRUGGLING IN THE END MR CANELO THINKS STOCK INVESTORS WILL WIND UP BEING RIGHT IN THEIR ANALYSIS OF THE ECONOMY WHILE BOND INVESTORS ARE LOOKING BACK BY FOCUSING ON THE FED'S POLICY DECISION IN AUGUST MR CANELO SAID STOCK INVESTORS ARE LOOKING AHEAD ANTICIPATING THAT THIRDQUARTER PROFITS WILL BE BETTER THAN EXPECTED MEANTIME A MARSHALL ACUFF MARKET STRATEGIST AT SMITH BARNEY SHEARSON BELIEVES NASDAQ STOCKS HAVE BEEN RISING BECAUSE OF SLOW GROWTH IN THE ECONOMY INVESTORS ARE BUYING GROUPS SUCH AS TECHNOLOGY THAT THEY HOPE CAN DELIVER THE BIGGEST PROFIT GAINS SHARES OF OIL COMPANIES JUMPED AS PETROLEUM PRICES ROSE ON WORD THAT THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES REACHED AGREEMENT ON A FOURTHQUARTER PRODUCTION CEILING MOBIL GAINED 7/8 TO 79 1/2 TEXACO ADVANCED 5/8 TO 65 1/4 AND AMOCO ROSE 1 TO 55 BANK BROKERAGE AND UTILITY SHARES RALLIED IN TANDEM WITH THE BOND MARKET CITICORP WAS AMONG THE MOSTACTIVE ISSUES UP 3/4 TO 37 ON VOLUME OF 23 MILLION SHARES WHILE BANC ONE GAINED 1 7/8 TO 41 7/8 AND MERRILL LYNCH ADDED 1 5/8 TO 99 5/8 BANKAMERICA THOUGH SANK 1 1/4 TO 45 1/2 ON BIG BOARD VOLUME OF 29 MILLION SHARES DONALDSON LUFKIN & JENRETTE REMOVED THE SAN FRANCISCO BANK'S SHARES FROM A RECOMMENDED LIST THE FIRM ALSO TRIMMED ITS ESTIMATE FOR BANKAMERICA'S 1993 AND 1994 EARNINGS MERRILL LYNCH CUT ITS FORECAST FOR THE COMPANY FRIDAY PARAMOUNT COMMUNICATIONS ADDED 2 TO 77 5/8 ITS CHAIRMAN MARTIN DAVIS SAID THE NEW YORK COMPANY WILL CONSIDER AN ACQUISITION OFFER FROM QVC NETWORK IF THE WEST CHESTER PA COMPANY SHOWS IT CAN FINANCE ITS BID PARAMOUNT HAS ALREADY AGREED TO BE PURCHASED BY VIACOM BUT THAT BID WAS TOPPED BY QVC VIACOM AMEX ADDED 1 5/8 TO 62 1/2 WHILE QVC NASDAQ DROPPED 1 1/8 TO 59 5/8 HOSPITALITY FRANCHISE SYSTEMS SURGED 4 TO 43 3/8 THE PARSIPPANY NJ HOTEL CONCERN SAID IT HAS ENTERED THE CASINO FRANCHISING BUSINESS SIGNING SEVERAL AGREEMENTS FOR GAMING VENTURES THE COMPANY OWNS THE DAYS INN RAMADA AND HOWARD JOHNSON NAMES SPIEGEL NASDAQ RALLIED 5 TO 41 1/2 THE DOWNERS GROVE ILL RETAILER AND TIME WARNER WILL JOIN FORCES TO CREATE TWO NEW HOME SHOPPING SERVICES FOR CABLE TELEVISION TIME WARNER SHARES ADDED 1/4 TO 42 3/8 USXUS STEEL GAINED 1 1/8 TO 31 BETHLEHEM STEEL ROSE 1/2 TO 14 1/2 AND NATIONAL STEEL INCREASED 5/8 TO 12 1/4 PAINEWEBBER RAISED ITS RATING ON THE STOCKS TO BUY FROM NEUTRAL ALCO STANDARD SHED 3 TO 43 1/4 AFTER MERRILL LYNCH LOWERED ITS LONGTERM RATING ON THE STOCK TO ABOVE AVERAGE FROM BUY MERRILL ALSO CUT ITS INTERMEDIATETERM RECOMMENDATION ON THE VALLEY FORGE PA PRINTING AND PAPER PRODUCTS PRODUCER 9309280012 930928 WHO'S NEWS BETA'S FINANCE CHIEF RESIGNS FLUCTUATION OF STOCK QUESTIONED CALGARY ALBERTA FOLLOWING A WEEK OF UNCERTAINTY OVER THE STATUS OF A SIBERIAN OILFIELD CONTRACT BETA WELL SERVICE INC REPORTED THE ABRUPT RESIGNATION OF ITS CHIEF FINANCIAL OFFICER AND SAID THE US SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING STOCKPRICE FLUCTUATIONS THE CALGARY OILFIELD SERVICES COMPANY SAID THE RESIGNATION AND THE INVESTIGATION WHICH THE SEC DECLINED TO CONFIRM OR DENY ARE UNRELATED BETA PRESIDENT WILLIAM GORDICA SAID BARRY PADLEY FINANCE CHIEF AND CORPORATE SECRETARY RESIGNED FRIDAY LESS THAN FOUR WEEKS AFTER BETA HIRED HIM BECAUSE HE WAS UNCOMFORTABLE MANAGING THE FINANCES OF AN AGGRESSIVELY GROWING COMPANY REACHED AT HIS HOME MR PADLEY DECLINED TO COMMENT ON THE REASONS FOR HIS RESIGNATION BETA'S FINANCES OR THE INVESTIGATION MR GORDICA SAID HE IS 100 IN FAVOR OF SUCH AN INVESTIGATION AND THAT BETA PLANS TO COOPERATE FULLY BETA'S SHARE PRICE HAS FLUCTUATED SINCE THE COMPANY WENT PUBLIC IN FEBRUARY TO FINANCE EXPANSION IN THE FORMER SOVIET UNION THE SHARES WHICH PEAKED AT 1975 IN JUNE CLOSED AT 675 DOWN 2 OR 23 IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY THE RECENT PLUNGE HAS COINCIDED WITH UNCERTAINTY ABOUT THE RUSSIAN OPERATIONS WHICH HAVE GENERATED 100 OF BETA'S EARNINGS THIS YEAR LAST WEEK THE COMPANY CONFIRMED THAT A SIBERIAN WELLSERVICING CONTRACT INVOLVING FOUR OF BETA'S 10 SERVICE RIGS OPERATING IN RUSSIA WAS SUSPENDED BUT MR GORDICA SAID BETA IS ONLY A SUBCONTRACTOR FOR THE PROJECT AND THE CONTRACTOR IS UPTODATE IN ITS PAYMENTS TO BETA 9309280011 930928 INTERNATIONAL INVESTCORP ACQUIRES 50 OF GUCCI GROUP IT DIDN'T ALREADY OWN MANAMA BAHRAIN AP INVESTCORP A BAHRAINBASED INVESTOR GROUP ACQUIRED THE 50 OF ITALIAN LUXURY GOODS COMPANY GUCCI GROUP IT DIDN'T ALREADY OWN INVESTCORP SAID IT EXPECTED THE TAKEOVER TO END A LEGAL DISPUTE INVOLVING GUCCI IN WHICH EACH SIDE WAS TRYING TO WREST CONTROL FROM THE OTHER TERMS OF THE TRANSACTION WEREN'T DISCLOSED BUT THE FINANCIALES NEWSPAPER SAID INVESTCORP PAID 170 MILLION FOR THE GUCCI STAKE AFTER SPENDING 160 MILLION FOR THE FIRST 50 IN 1988 INVESTCORP DECLINED TO COMMENT ON THE REPORT AMONG A STRING OF LEGAL SQUABBLES THE ITALIAN COMPANY WAS IN THE PROCESS OF SUING ITS US RETAIL AFFILIATE GUCCI AMERICAN INC FOR ALLEGEDLY FAILING TO PAY FOR MERCHANDISE IN ADDITION INVESTCORP HAD ALLEGED THAT MAURIZIO GUCCI SCION OF THE ITALIAN FASHION GOODS COMPANY HAD WASTED MONEY AND FAILED TO RETURN THE COMPANY TO PROFITABILITY MR GUCCI MEANWHILE SAID THE FINANCIERS BEHIND INVESTCORP WERE INTERESTED PURELY IN SHORTTERM GAINS INVESTCORP WHICH SPECIALIZES IN MEDIUMTERM INVESTMENTS IN RETAIL COMPANIES AND WHOSE LARGEST ACQUISITION WAS THE 16 BILLION PURCHASE OF SAKS FIFTH AVENUE IN 1990 SAID IT PLANS TO INJECT NEW CAPITAL INTO GUCCI 9309280010 930928 FINANCING BUSINESS LORAL CORP LORAL CORP NEW YORK SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR 300 MILLION OF SENIOR DEBT SECURITIES LORAL SAID PROCEEDS FROM THE ANTICIPATED OFFERINGS WILL BE USED FOR GENERAL CORPORATE PURPOSES LORAL PRODUCES EQUIPMENT USED IN DEFENSE COMMUNICATIONS AND SPACE APPLICATIONS 9309280009 930928 INTERNATIONAL FOREIGN INVESTMENT IN MEXICO MEXICO CITY FOREIGN INVESTMENT IN MEXICO TOTALED 854 MILLION IN AUGUST BRINGING THE TOTAL FOR THE YEAR TO 696 BILLION 101 HIGHER THAN IN THE SAME PERIOD OF 1992 THE COMMERCE DEPARTMENT SAID FOREIGN INVESTMENT FROM 1989 THROUGH AUGUST 1993 TOTALED 3309 BILLION 38 GREATER THAN THE SIXYEAR GOAL OF PRESIDENT CARLOS SALINAS DE GORTARI WHO TOOK OFFICE IN DECEMBER 1988 ALMOST HALF OF THE AUGUST INVESTMENT WAS DIRECTED TO THE MANUFACTURING SECTOR WHILE THE SERVICE SECTOR GARNERED 30 OF THE TOTAL AND THE COMMERCIAL SECTOR 15 US INVESTMENT ACCOUNTED FOR 72 OF THE AUGUST TOTAL INVESTMENTS FROM THE EUROPEAN COMMUNITY MEMBERS ACCOUNTED FOR 10 OTHER LATIN AMERICAN COUNTRIES 9 AND THE PACIFIC RIM 3 9309280008 930928 INTERNATIONAL JAPAN SUPPORTS OPEN EXTENSION OF NUCLEAR TREATY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL THE JAPANESE GOVERNMENT NOW SUPPORTS AN INDEFINITE EXTENSION OF THE INTERNATIONAL NUCLEAR NONPROLIFERATION TREATY PRIME MINISTER MORIHIRO HOSOKAWA SAID IN A SPEECH TO THE UNITED NATIONS GENERAL ASSEMBLY MR HOSOKAWA'S STATEMENT REVERSES THE POLICY OF THE FORMER GOVERNMENT WHICH SAID IT COULDN'T SUPPORT AN OPENENDED CONTINUATION OF THE AGREEMENT TOKYO'S PREVIOUS REFUSAL TO BACK EXTENSION OF THE TREATY WHICH EXPIRES IN 1995 HAD SURPRISED DIPLOMATS WHEN THEY FIRST HEARD OF IT AT THE ANNUAL SUMMIT OF THE GROUP OF SEVEN INDUSTRIAL NATIONS IN JULY SOME JAPANESE OPPOSE THE TREATY BECAUSE THEY FEEL IT ALLOWS EXISTING NUCLEAR POWERS TO KEEP THEIR ARSENAL RATHER THAN REQUIRING UNIVERSAL DISARMAMENT OTHERS ARGUE THAT JAPAN THE ONLY VICTIM OF A NUCLEAR ATTACK AND CURRENTLY A NONNUCLEAR STATE SHOULD KEEP ITS OPTIONS OPEN IN THE EVENT THE US ONE DAY WITHDRAWS THE NUCLEAR UMBRELLA PROTECTING JAPAN BUT MR HOSOKAWA SAID AT THE UN I WISH TO AFFIRM THAT JAPAN SUPPORTS THE INDEFINITE EXTENSION OF THAT TREATY BEYOND 1995 HE SAID HOWEVER THIS SHOULDN'T PERPETUATE THE POSSESSION OF NUCLEAR WEAPONS BY THE NUCLEAR WEAPON STATES MR HOSOKAWA DIDN'T USE HIS SPEECH TO CAMPAIGN OPENLY FOR A SEAT ON THE UN SECURITY COUNCIL A SLOT MANY JAPANESE EAGERLY SEEK HE ONLY SAID THAT MANY NATIONS HAVE GENERATED THE NEED TO EXPAND THE MEMBERSHIP OF THE SECURITY COUNCIL AND THAT JAPAN INTENDS TO PARTICIPATE CONSTRUCTIVELY IN DISCUSSIONS ON SECURITY COUNCIL REFORM MR HOSOKAWA ALSO SAID JAPAN WILL EXTEND ABOUT 200 MILLION IN AID TO THE PALESTINIANS OVER THE NEXT TWO YEARS 9309280007 930928 POLITICS & POLICY CONGRESSMAN'S TAXEXEMPT COMMISSION MAY GIVE GLIMPSE OF LOBBYING'S FUTURE BY KENNETH H BACON AND GREG HITT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CONGRESSMAN LARRY LAROCCO WANTS AMERICANS TO INCREASE THEIR RATE OF PERSONAL SAVINGS SO DOES THE COMMISSION ON SAVINGS & INVESTMENT IN AMERICA A NEW ORGANIZATION SEEKING TAXDEDUCTIBLE CONTRIBUTIONS FROM BANKS BROKERAGE FIRMS AND FINANCE COMPANIES THOSE TWO FACTS AREN'T COINCIDENTAL THAT'S BECAUSE IT IS REP LAROCCO WHO IS ESTABLISHING THE COMMISSION AND APPEALING FOR CONTRIBUTIONS FROM MANY INTEREST GROUPS THAT LOBBY EXTENSIVELY IN CONGRESS THE IDAHO DEMOCRAT SEES NOTHING WRONG WITH THAT WE'RE ON THE SIDE OF THE ANGELS HERE HE SAYS POINTING TO A PIGGY BANK NEXT TO HIS DESK HE SAYS I BELIEVE IN SAVINGS SAVINGS ARE A NATIONAL RESOURCE HIS GOAL IS TO BOOST THE NATION'S LOW PERSONAL SAVINGS RATE BY HALF A PERCENTAGE POINT OR ABOUT 15 IN THE NEXT FIVE YEARS BUT PLENTY OF OTHERS SAY THERE IS SOMETHING FUNDAMENTALLY WRONG WITH SUCH A CONVERGENCE OF POLITICAL POWER SPECIAL INTERESTS AND TAXDEDUCTIBLE MONEY CLEARLY THERE'S A CONCERN ABOUT USING A TAXEXEMPT ORGANIZATION TO PROMOTE A FAIRLY EXPLICIT INDUSTRY AGENDA SAYS CHRIS LEWIS OF THE CONSUMER FEDERATION OF AMERICA MANY POLITICAL FINANCE EXPERTS WORRY THAT THE BUDGETCUTTING PACKAGE CONGRESS ADOPTED IN AUGUST COULD LEAD TO A SURGE IN INDUSTRYFINANCED FOUNDATIONS LIKE REP LAROCCA'S AS A BACKDOOR METHOD OF SPECIALINTEREST LOBBYING UNDER THE NEW LAW CORPORATIONS STARTING IN JANUARY WILL NO LONGER BE ALLOWED TO DEDUCT MANY LOBBYING EXPENSES INCLUDING THE COST OF TRYING TO INFLUENCE CONGRESS ON SPECIFIC LEGISLATION BUT GIVING MONEY TO A FOUNDATION WILL STILL BE DEDUCTIBLE AS LONG AS IT DOESN'T CROSS THE SOMETIMES FINE LINE BETWEEN TRYING TO EDUCATE LAWMAKERS ABOUT AN ISSUE AND TRYING TO INFLUENCE THEM THE RESULT IS THAT THESE FOUNDATIONS BECOME ANOTHER POCKET OF A POLITICIAN'S COAT INTO WHICH COMPANIES CAN STUFF MONEY SAYS ELLEN MILLER THE DIRECTOR OF THE CENTER FOR RESPONSIVE POLITICS WHICH STUDIES POLITICAL FUNDING PATTERNS INDEED SHE NOTES UNLIKE POLITICAL CONTRIBUTIONS TO MEMBERS OF CONGRESS THERE ARE NO LIMITS ON WHAT PEOPLE CAN CONTRIBUTE TO CHARITABLE FOUNDATIONS A NUMBER OF OTHER MEMBERS OF CONGRESS ALREADY HAVE THEIR OWN FOUNDATIONS SENATE REPUBLICAN LEADER ROBERT DOLE'S ORGANIZATION TO PROMOTE THE EMPLOYMENT OF DISABLED WORKERS AND DEMOCRATIC SEN ROBERT BYRD'S SCHOLARSHIP FUND FOR WEST VIRGINIA HIGH SCHOOL VALEDICTORIANS DON'T STIR MUCH CONTROVERSY NOR DO THE FOUNDATIONS THAT HAVE BEEN SET UP BY PRESIDENTIAL WANNABES LIKE FORMER REP JACK KEMP AND FORMER SEN GARY HART BUT OTHER FOUNDATIONS HAVE RAISED AS MANY QUESTIONS AS DOLLARS FOR INSTANCE THE GARN INSTITUTE ESTABLISHED BY FORMER SEN JAKE GARN A UTAH REPUBLICAN OFFERED CONTRIBUTORS THE OPPORTUNITY TO TAKE PART IN ONEONONE DISCUSSIONS WITH GOVERNMENT POLICY MAKERS AND OTHER LEADERS AND ATTRACTED LARGE CONTRIBUTIONS FROM THRIFT KINGPIN CHARLES KEATING AND OTHERS WHO EVENTUALLY WERE CONVICTED OF BANKING FRAUD MR LAROCCO SAYS THE PEOPLE AND GROUPS HE IS ASKING TO SUPPORT HIS COMMISSION FULLY UNDERSTAND THE DIFFERENCE BETWEEN POLITICAL CONTRIBUTIONS AND GIFTS TO A TAXEXEMPT EDUCATIONAL FOUNDATION THEY'RE VERY SOPHISITICATED IN THAT REGARD HE SAYS I'M NOT GOING TO ACCRUE ANY BENEFIT OUT OF THIS INDUSTRY REPRESENTATIVES MEANWHILE SAY THEIR INVOLVEMENT WITH MR LAROCCO'S FOUNDATION IS A PUBLICSPIRITED EFFORT TO SOLVE A NATIONAL ECONOMIC PROBLEM NOT AS A WAY TO EXPAND THEIR INFLUENCE BUT SAMUEL BAPTISTA PRESIDENT OF THE FINANCIAL SERVICES COUNCIL WHICH LOBBIES FOR CITICORP AND OTHER DIVERSIFIED FINANCIAL GIANTS ADMITS THAT RESEARCH PRODUCED BY THE COMMISSION MAY WELL FIND ITS WAY INTO POSITION PAPERS HEADED FOR CAPITOL HILL IT'S THE NATURE OF THE BEAST MR BAPTISTA SAYS IF YOU SEE A STUDY OR PAPER THAT SUPPORTS WHAT YOU TALK ABOUT YEAH YOU CAN GET THAT PAPER INTO PEOPLE'S HANDS A FORMER STOCKBROKER MR LAROCCO SAYS THERE IS ABSOLUTELY NO CONNECTION BETWEEN HIS DECISION TO SET UP A TAXEXEMPT GROUP TO PROMOTE SAVINGS AND THE NEW LOBBYING LAW SHORTLY AFTER HIS ELECTION TO CONGRESS IN 1990 HE BEGAN TO DISCUSS THE NATION'S SAVINGS SHORTAGE WITH FEDERAL RESERVE BOARD CHAIRMAN ALAN GREENSPAN AND FORMER CHAIRMAN PAUL VOLCKER EARLY THIS YEAR HE BEGAN DISCUSSING THE COMMISSION WITH REPRESENTATIVES OF BANKS INVESTMENT FIRMS AND TRADE ASSOCIATIONS THE IDEA HE SAYS WAS TO CONDUCT POLLS ON SAVINGS PATTERNS FUND RESEARCH HOLD CONFERENCES AND PRODUCE EDUCATIONAL MATERIALS FOR SCHOOL GROUPS NOT TO ENDORSE ANY SPECIFIC LEGISLATIVE ACTIONS THE RESPONSE WAS UNBELIEVABLE HE SAYS ENCOURAGED MR LAROCCO ASKED THE HOUSE ETHICS COMMITTEE TO REVIEW THE PROPRIETY OF HIS PLANS THE PANEL CLEARED THE PLAN BUT NOTED IN A MARCH 29 LETTER THAT YOU SHOULD DISCOURAGE ANY SUGGESTION THAT DONORS TO OR THOSE ASSOCIATED WITH THE ORGANIZATION WILL RECEIVE FAVORABLE CONSIDERATION FROM YOU IN OFFICIAL MATTERS REP LAROCCO SAYS THAT HE DOESN'T EXPECT THE COMMISSION TO PRODUCE LEGISLATIVE PROPOSALS THAT WILL COME BEFORE THE BANKING PANEL EVEN BEFORE RECEIVING THE RULING HOWEVER MR LAROCCO WAS RAISING MONEY FOR THE COMMISSION A MARCH 26 LETTER TO JAY HARRIS THEN MANAGER OF THE SAVINGS AND LOAN INDUSTRY'S POLITICAL ACTION COMMITTEE EMPHASIZED THE FACT THAT THE COMMISSION HAD BEEN SET UP AS A TAXEXEMPT INSTITUTION ALLOWING YOUR INVESTMENT TO BE A CHARITABLE CONTRIBUTION DURING THE SPRING AND SUMMER THE COMMISSION WAS SEEKING 5000 CONTRIBUTIONS FROM SUCH COMPANIES AND ORGANIZATIONS AS NATIONSBANK MERRILL LYNCH & CO AMERICAN EXPRESS CO THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND VARIOUS FINANCIAL TRADE ASSOCIATIONS MR LAROCCO NOW ADMITS THOUGH THAT THE MARCH LETTER AND SUBSEQUENT PITCHES CIRCULATED BY THE COMMISSION'S EXECUTIVE DIRECTOR MISTAKENLY EMPHASIZED THE TAX STATUS OF THE GROUP ACTUALLY THE COMMISSION IS ONLY NOW COMPLETING THE APPLICATION FOR TAXEXEMPT STATUS AND PLANS TO FILE SOON MR LAROCCO SAYS HE HAS SUSPENDED FUND RAISING UNTIL THE APPLICATION IS FILED WITH THE INTERNAL REVENUE SERVICE STILL THE GROUP DID RAISE 10000 BEFORE INTERRUPTING ITS CANVASSING ACCORDING TO MR HARRIS WHO IS NOW THE COMMISSION'S TREASURER IT HAS BEEN AMAZING THAT PEOPLE HAVE RESPONDED SO IMMEDIATELY MR LAROCCO SAYS THE FINANCIAL COMMUNITY IS ALREADY MR LAROCCO'S TOP SOURCE OF POLITICAL SUPPORT SHOWERING HIM WITH 129660 IN PAC CONTRIBUTIONS IN THE LAST ELECTION CYCLE ACCORDING TO THE NATIONAL LIBRARY ON MONEY AND POLITICS MR LAROCCO'S COMMISSION IS THICK WITH INDUSTRY REPRESENTATIVES AND THIN ON ACADEMICIANS SHERI PETERSON MCGRATH FORMERLY A LOBBYIST FOR THE AMERICAN FINANCIAL SERVICES ASSOCIATION IS EXECUTIVE DIRECTOR JESSICA BERK A LOBBYIST FOR THE INVESTMENT COMPANY INSTITUTE THE MUTUAL FUND TRADE GROUP TURNS UP AS THE REGISTERED AGENT ON THE COMMISSION'S INCORPORATION PAPERS KELLY MCNAMARA DEAN WITTER'S VICE PRESIDENT FOR GOVERNMENT AFFAIRS IN WASHINGTON AND JAMES LEBENTHAL A WELLKNOW MUNICIPAL BOND SALESMAN ARE LISTED AS DIRECTORS MR LAROCCO SAYS THE COMMISSION WILL EVENTUALLY BE BROADER HIS ASSOCIATES SAY HE WOULD LIKE TO ATTRACT NATIONAL FIGURES SUCH AS MR VOLCKER OR WILLIAM SEIDMAN THE FORMER CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP WHO HAVE EXPRESSED AN INTEREST IN PROMOTING SAVINGS AND ECONOMIC GROWTH HE'S ALSO TRYING TO REACH OUT TO CONSUMER AND OTHER GROUPS BUT THE AMERICAN ASSOCIATION OF RETIRED PERSONS HAS TURNED DOWN AN INVITATION TO JOIN THE COMMISSION THE FINANCIAL SERVICE INDUSTRY IT REPRESENTS HAS A VESTED INTEREST IN PROMOTING ITS OWN PRODUCTS SAYS KENT BRUNETTE AARP'S CHIEF FINANCIAL SERVICES LOBBYIST I JUST DON'T THINK IT'S A FIT 9309280006 930928 BOARD OF CONTRIBUTORS NO NEED TO BE SCARED OF NAFTA BY HERBERT STEIN DO YOU REMEMBER THE THREE MILLION LOST JOBS SCARE IT WAS A BIG THING AROUND 1985 AND 1986 THE SCARE WAS THAT THE US HAD LOST OR WAS LOSING OR WOULD LOSE THREE MILLION JOBS AS A RESULT OF ITS RISING TRADE DEFICIT I REMEMBER IT BECAUSE I WROTE AN ARTICLE ABOUT IT ON THIS VERY PAGE ON JULY 29 1985 I SAID THAT THERE WAS NO REASON IN ECONOMIC THEORY FOR A TRADE DEFICIT TO CAUSE THE LOSS OF JOBS IN THIS CASE THE THEORY WAS CONFIRMED BY THE FACTS EMPLOYMENT IN THE US ROSE STRONGLY THROUGHOUT THE PERIOD OF THE RISING TRADE DEFICIT AND THE RISE OF EMPLOYMENT BEGAN TO SLOW DOWN ONLY AFTER THE TRADE DEFICIT BEGAN TO DECLINE THAT DOES NOT MEAN THAT A RISING TRADE DEFICIT IS GOOD FOR EMPLOYMENT IT ONLY MEANS THAT TRADE DEFICITS HAVE LITTLE TO DO WITH EMPLOYMENT NOW WE ARE BEING TREATED TO ANOTHER SCARE WE ARE TOLD THAT THE ADOPTION OF THE NORTH AMERICAN FREE TRADE AGREEMENT ELIMINATING BARRIERS TO IMPORTS FROM MEXICO WILL COST THE US 200000 OR 500000 OR SOME OTHER NUMBER OF JOBS BUT THIS CLAIM HAS NO MORE VALIDITY THAN THE EARLIER CLAIM OF THREE MILLION JOBS LOST A CLAIM NOW GENERALLY FORGOTTEN THE COMPLAINT ABOUT NAFTA IS THAT THE REDUCTION OF US BARRIERS TO IMPORTS FROM MEXICO WILL CAUSE AN INCREASE IN SUCH IMPORTS WHICH WILL COMPETE WITH USMADE PRODUCTS AND FORCE THE US WORKERS WHO MAKE THOSE PRODUCTS OUT OF THEIR JOBS BUT THIS IS OF COURSE ONLY THE BEGINNING OF THE STORY THE MEXICANS WHO EXPORT MORE TO THE US WILL HAVE HIGHER INCOMES AND MORE US DOLLARS AND THE BARRIERS TO EXPORTS FROM THE US TO MEXICO WILL BE REDUCED THE GREATEST PROBABILITY IS THAT HAVING LARGER INCOMES AND MORE US DOLLARS WITH THE COSTS OF US PRODUCTS REDUCED BY THE CUT IN MEXICAN TARIFFS THE MEXICANS WILL BUY MORE FROM THE US SOME PEOPLE SAY THAT THE MEXICANS WILL NOT BUY MORE FROM US BECAUSE EVEN AFTER THEY INCREASE THEIR SALES HERE THEY WILL BE TOO POOR TO AFFORD SAY AN AMERICAN AUTOMOBILE BUT THE MEXICANS WITH THEIR PRESENT INCOMES BUY A GREAT DEAL FROM US AND THEIR PURCHASES HAVE INCREASED AS THEIR INCOMES INCREASE AND TARIFF BARRIERS DECLINE THIS WHOLE ARGUMENT IS RATHER FANTASTIC IT SUGGESTS THAT WE CANNOT EXPORT TO COUNTRIES THAT ARE POORER THAN WE ARE BUT SINCE ALL OTHER COUNTRIES ARE POORER THAN WE ARE IT SUGGESTS THAT WE CANNOT EXPORT AT ALL WHICH IS PREPOSTEROUS WE ARE THE WORLD'S LARGEST EXPORTER BUT SUPPOSE THAT THE MEXICANS DO NOT WANT TO INCREASE THEIR IMPORTS FROM US OR DO NOT WANT TO INCREASE THEIR IMPORTS AS MUCH AS THEIR EXPORTS WHAT BECOMES OF THE US DOLLARS THEY ACQUIRE BY THEIR INCREASED EXPORTS TO US THERE ARE TWO POSSIBILITIES ONE IS THAT THE MEXICANS WHO ACQUIRE THE DOLLARS SELL THEM FOR PESOS THAT DRIVES DOWN THE VALUE OF THE DOLLAR RELATIVE TO THE PESO INCREASING THE COSTS OF MEXICAN PRODUCTS IN THE US AND REDUCING THE COSTS OF US PRODUCTS IN MEXICO IF THE MEXICANS ARE REALLY DETERMINED NOT TO HOLD ANY MORE US DOLLARS THIS PROCESS WILL CONTINUE UNTIL THE EXCESS OF MEXICAN EXPORTS IS ELIMINATED AND THUS THE ACQUISITION OF ADDITIONAL US DOLLARS IS STOPPED THE MORE LIKELY POSSIBILITY IS THAT TO THE EXTENT THAT THE MEXICANS DO NOT WANT TO USE THEIR ADDITIONAL DOLLARS TO BUY US PRODUCTS THEY WILL INVEST THEM IN THE US AS THE JAPANESE AND OTHERS WITH WHOM WE RAN TRADE DEFICITS IN THE PAST 12 YEARS DID THAT WOULD INCREASE THE SUPPLY OF CAPITAL IN THE US REDUCE INTEREST RATES HERE AND INCREASE EMPLOYMENT IN INDUSTRIES THAT ARE RESPONSIVE TO INTEREST RATES LIKE CONSTRUCTION ALL OF THESE OFFSETTING RESPONSES TO THE REDUCTION OF TRADE BARRIERS MAY NOT OCCUR SIMULTANEOUSLY SO THERE MAY BE AN INITIAL TENDENCY TO AFFECT EMPLOYMENT IN THE US BUT NO ONE CAN RESPONSIBLY CLAIM TO KNOW WHETHER THIS INITIAL TENDENCY WOULD BE POSITIVE OR NEGATIVE PROBABLY THE BEST GUESS IS THAT THE INITIAL TENDENCY WOULD BE ZERO THIS INITIAL TENDENCY WOULD NOT HOWEVER BE THE ACTUAL EFFECT THE ACTUAL EFFECT WOULD DEPEND ON THE WAY THE ECONOMY AS A WHOLE AND THE POLICYMAKING AUTHORITIES RESPOND TO THE INITIAL TENDENCY THE BASIC FACT IS THAT THERE ARE ALWAYS SOME SECTORS OF THE US ECONOMY IN WHICH EMPLOYMENT IS DECLINING BUT THAT DOES NOT PREVENT TOTAL EMPLOYMENT FROM RISING IN 1980 26 OF ALL PRIVATE EMPLOYEES WORKED IN INDUSTRIES WHERE EMPLOYMENT WOULD DECLINE BY 1989 BUT TOTAL EMPLOYMENT INCREASED STRONGLY BETWEEN 1980 AND 1989 IF OUR FISCAL AND MONETARY AUTHORITIES FOLLOW POLICIES THAT WILL KEEP AGGREGATE DEMAND RISING AT AN ADEQUATE PACE TOTAL EMPLOYMENT WILL RISE NAFTA WILL HAVE TRIVIAL IMPLICATIONS FOR THEIR ABILITY TO DO THAT INSOFAR AS GOVERNMENT POLICY CAN SOLVE OUR JOBS PROBLEM THE SOLUTION DOES NOT LIE IN REJECTING OR ACCEPTING NAFTA BUT LIES IN BETTER MANAGEMENT OF OUR FISCAL AND MONETARY AFFAIRS IF NAFTA IS NOT ABOUT JOBS WHAT IS IT ABOUT WHAT IS IN IT FOR US IN PART IT IS ABOUT THE REAL INCOMES OF THE RESIDENTS OF THE US IT IS ABOUT PERMITTING US TO MAXIMIZE OUR INCOMES BY BUYING WHERE WE CAN GET THINGS CHEAPEST AND SELLING WHERE WE CAN GET THE HIGHEST RETURN FOR OUR LABOR AND OUR PRODUCT BUT GIVEN THE RELATIVE SIZE OF THE TWO ECONOMIES THE INCOME GAIN FOR THE US WOULD PROBABLY BE SMALL WHAT NAFTA IS REALLY ABOUT IS THE CHARACTER OF THE WORLD IN WHICH OUR CHILDREN AND GRANDCHILDREN WILL LIVE WE HAVE TO ASK OURSELVES WHETHER WE THINK IT IMPORTANT THAT OTHER COUNTRIES ESPECIALLY OUR NEAREST NEIGHBORS SHOULD ACHIEVE INCREASING ECONOMIC WELFARE THROUGH RELIANCE ON GENERALLY FREE MARKETS AND EXCHANGE WITH THE REST OF THE WORLD INCLUDING US FOR THE PAST 50 YEARS THE US HAS TAKEN THE LEAD IN THE REDUCTION OF WORLDWIDE BARRIERS TO INTERNATIONAL TRADE THAT POLICY CONTRIBUTED TO OUR OWN PROSPERITY BUT THE EXPECTATION OF THAT WAS NOT THE SOLE OR INDEED THE MAJOR REASON FOR OUR POLICY THE ECONOMIC BENEFITS FOR US WERE ALWAYS INDIRECT AND DIFFICULT FOR ANY INDIVIDUAL TO FORESEE WHEREAS THE DISLOCATIONS INVOLVED FOR PARTICULAR SECTORS WERE EASY TO DRAMATIZE WHAT CARRIED THE DAY FOR LIBERAL TRADE POLICY WAS THE CASE BEYOND THE ADDITION OF SOME TENTHS OF A PERCENT TO THE NATIONAL INCOME OF THE US IT WAS THE RECOGNITION THAT IN ADDITION TO SERVING OUR ECONOMIC INTERESTS LIBERAL TRADE POLICY WAS AN APPLICATION OF AMERICAN PRINCIPLES AN EXPRESSION OF AMERICAN CONCERN FOR THE WELLBEING OF OTHERS AND ABOVE ALL THAT IT MADE A CONTRIBUTION TO THE STABILITY OF THE WORLD WE LIVE IN IT IS TO OUR INTEREST THAT MEXICO SHOULD SEE ITS FUTURE WELFARE IN FREE MARKETS AND IN ASSOCIATION WITH US IT IS IN OUR INTEREST THAT THE RECENTLY LIBERATED COUNTRIES OF EASTERN EUROPE SHOULD FIND PROSPERITY THROUGH FREE ECONOMIES THE BEST THING THAT THE INDUSTRIAL WORLD AND ESPECIALLY THE ADVANCED COUNTRIES OF WESTERN EUROPE THAT ARE THEIR NEIGHBORS CAN DO TO ASSIST IN THIS PROCESS IS TO OPEN THEIR MARKETS TO THESE STRUGGLING COUNTRIES WHAT KIND OF MESSAGE DO WE SEND TO EUROPE IF WE CANNOT ELIMINATE OUR BARRIERS TO TRADE WITH OUR NEIGHBOR MEXICO TWOTHIRDS OF THE WORLD'S POPULATION LIVES IN COUNTRIES WITH PERCAPITA INCOMES LESS THAN 20 OF OURS THAT IS NOT A CONDITION WITH WHICH WE AS HUMAN BEINGS CAN BE HAPPY NEITHER IS IT A CONDITION WITH WHICH WE CAN IN THE LONG RUN FEEL SECURE ONE OF THE FEW THINGS WE KNOW HOW TO DO TO HELP CORRECT THAT CONDITION IS TO OPEN OUR MARKETS MORE FREELY TO THESE COUNTRIES IF WE CANNOT RISE ABOVE THE LEVEL OF SPURIOUS BEANCOUNTING ABOUT JOBS TO TAKE A STEP THAT IS SO CLEARLY IN OUR ECONOMIC AND POLITICAL INTEREST AS NAFTA THE PROSPECT FOR DEALING WISELY WITH THE WORLD'S GREATER PROBLEMS WILL BE DIM A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9309280005 930928 CLINTON HEALTHPLAN INTERIM CONTROLS ON INSURERS DRAW FIRE FROM INDUSTRY BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL INTERIM CONTROLS ON THE INSURANCE INDUSTRY UNDER THE CLINTON ADMINISTRATION HEALTH PLAN COULD HASTEN THE EXODUS OF SMALL INSURERS FROM THE HEALTHINSURANCE BUSINESS BUT BIG INSURERS WOULD FEEL LITTLE IMPACT ACCORDING TO INDUSTRY OFFICIALS NEVERTHELESS THE OFFICIALS CHARGE THE RULES CAST THE ENTIRE INDUSTRY AS THE BOGEYMAN IN THE HEALTHCARE DEBATE BY ACCUSING THEM OF ABUSES THEY ARGUE HAVE LARGELY BEEN ELIMINATED BY STATE LEGISLA TION THE CLINTON PLAN CALLS FOR RULES TO REDUCE THE POTENTIAL FOR DISRUPTION IN THE HEALTHINSURANCE INDUSTRY DURING THE TRANSITION TO THE CLINTON SYSTEM AMONG THE PROPOSED RULES ARE REQUIREMENTS THAT INSURERS NOT DROP SICK CUSTOMERS DURING THE TRANSITION AND THAT THEY STOP ISOLATING SPECIFIC INDIVIDUALS AND GROUPS FOR HEFTY RATE INCREASES THE DRAFT OF THE CLINTON PLAN ALSO CALLS FOR THE CREATION OF A POOL SUBSIDIZED BY THE INSURANCE INDUSTRY TO COVER PEOPLE WHOM INSURANCE COMPANIES TURN DOWN THE PROSPECT OF INTERIM CONTROLS ISN'T NEW CLINTON ADMINISTRATION OFFICIALS DISCLOSED LAST SPRING THAT SUCH A STEP WAS LIKELY BECAUSE THEY FEARED SOME INSURERS WOULD TRY TO DUMP PEOPLE FROM THEIR ROLLS BEFORE A NEW HEALTH SYSTEM WAS UP AND RUNNING INDEED THE SHORTTERM INSURANCE INDUSTRY REGULATIONS ARE DISCUSSED IN A 239PAGE DRAFT OF THE CLINTON HEALTH PROPOSAL THAT HAS BEEN FLOATING AROUND WASHINGTON FOR WEEKS BUT THE ISSUE HAS GOTTEN RENEWED ATTENTION IN RECENT DAYS AFTER SENIOR WHITE HOUSE ADVISER IRA MAGAZINER SPOKE TO REPORTERS ABOUT IT INSURANCE OFFICIALS SAY THE ADMINISTRATION APPEARS TO BE PROMOTING THE TRANSITION RULES BECAUSE THEY PROVIDE A PLATFORM TO BLAST THE INDUSTRY THAT IN TURN WOULD MAKE IT EASIER TO PASS HEALTHREFORM MEASURES THE INDUSTRY FINDS OBJECTIONABLE THEY SAY I THINK IT'S PECULIAR THAT THEY BRING THIS OUT AS AN ISSUE SAID CHIP KAHN EXECUTIVE VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA I THINK THERE'S AN ORGANIZED CAMPAIGN TO MAKE IT LOOK LIKE INSURERS ARE AGAINST REFORM BY PROHIBITING INSURERS FROM SELECTIVELY JACKING UP RATES AND DROPPING SICK PEOPLE THE PROPOSED RULES MAKE IT SEEM AS IF SUCH PRACTICES ARE WIDESPREAD MR KAHN SAID BUT HE SAID MOST STATES HAVE ALREADY PASSED RULES AGAINST THOSE ABUSES BESIDES MOST PEOPLE ARE COVERED BY SELFINSURED PLANS AND GOVERNMENT PLANS SUCH AS MEDICARE WHERE SUCH ABUSES HAVE NEVER BEEN A PROBLEM INDUSTRY OFFICIALS ARGUE NEVERTHELESS SOME SMALL INSURERS DO RELY ON THEIR ABILITY TO RAISE RATES AND DROP CUSTOMERS BY FORCING INSURERS TO KEEP EVERY CUSTOMER WITHOUT BEING ABLE TO CHARGE THAT CUSTOMER MORE FOR COVERAGE THE ADMINISTRATION IS SAYING TO INSURERS STAY IN THE BUSINESS AND GET BURNED SAID THOMAS PYLE AN EXECUTIVE WITH METROPOLITAN LIFE INSURANCE CO THE CLINTON HEALTH PLAN ALREADY PUTS THE SQUEEZE ON SMALL INSURERS BY ENCOURAGING HEALTH MAINTENANCE ORGANIZATIONS OVER TRADITIONAL FEEFORSERVICE MEDICINE SMALL INSURERS DON'T HAVE THE MONEY TO SET UP HMOS POTENTIALLY DRIVING MANY OF THEM OUT OF THE HEALTHINSURANCE BUSINESS THE TRANSITION RULES WOULD ONLY HASTEN THEIR DEPARTURE INDUSTRY OFFICIALS SAY CONSUMER ADVOCATES HOWEVER SAY THE TRANSITION RULES ARE A MUST IN PART BECAUSE THE STATE REFORMS ARE RIDDLED WITH LOOPHOLES THE PROTECTIONS ARE NEEDED AS AN INTERIM STEP SAID GAIL SHEARER OF CONSUMERS UNION THE PRESIDENT IS TRYING TO CURB SOME OF THE MOST INSIDIOUS ABUSES THEY ALSO SAY THE CREATION OF A POOL TO PICK UP PEOPLE NOT COVERED BY INSURERS IS ESSENTIAL AND GOES WELL BEYOND ANYTHING THE STATES HAVE 9309280004 930928 MARKETING BY RICHARD GIBSON NATIONALLY TELEVISED SPORTS PROVIDE AN EASY WAY FOR BIG COMPANIES TO SCORE WITH CONSUMERS BUT UNTIL NOW MARKETERS WITHOUT A NATIONWIDE PRESENCE HAVE SAT ON THE SIDELINES HARDEE'S FOOD SYSTEMS A FASTFOOD CHAIN THAT SELLS HAMBURGERS AND FRIED CHICKEN IN 25 STATES IS GETTING INTO THE GAME BY SIGNING EXCLUSIVE MULTIYEAR PROMOTIONAL DEALS WITH FOUR OF THE COUNTRY'S MAJOR COLLEGE CONFERENCES THE ATLANTIC COAST SOUTHEASTERN BIG EIGHT AND BIG TEN AMONG THE 40 TEAMS REPRESENTED ARE SUCH PERENNIAL ATHLETIC POWERS AS FLORIDA STATE MICHIGAN AND NORTH CAROLINA THE ROCKY MOUNT NCBASED CHAIN'S PROGRAM MAKING ITS DEBUT IN THE COMING BASKETBALL SEASON IS LIKELY TO INCLUDE PREMIUMS SWEEPSTAKES AND MERCHANDISE WITH CONFERENCE LOGOS SOLD IN RESTAURANTS HARDEE'S MARKETING EXECUTIVE VICE PRESIDENT JERRY GRAMAGLIA SAYS THE CAMPAIGN COULD COST 10 MILLION TO 15 MILLION OR ABOUT 10 OF THE ANNUAL MARKETING BUDGET WE'VE BEEN DEALING WITH A LOT OF THE INDIVIDUAL COLLEGES IN THE CONFERENCES BUT WANTED TO STEP UP OUR RELATIONSHIP TO HAVE THE SCALE AND BREADTH TO PARTICIPATE ON A MORE EFFICIENT BASIS HE SAYS IT'S VERY TOUGH AND EXPENSIVE TO DO PROMOS OR SWEEPSTAKES ON A LOCALMARKET BASIS ALSO IN A LOT OF OUR MARKETS THERE'S NOT GREAT ACCESS TO PROFESSIONAL SPORTS REGIONAL SPONSORSHIPS ARE BECOMING HOT IN THE 4BILLIONAYEAR US SPORTSMARKETING BUSINESS ALSO GETTING INTO THE ACTION FOR INSTANCE IS PHILIPS PETROLEUM BARTLESVILLE OKLA WHICH SPONSORS BIG EIGHT TOURNAMENTS WHAT HARDEE'S DID IS INDICATIVE OF A TREND TO ARRANGE A DEAL WITH A CONFERENCE RATHER THAN GOING TO EACH TEAM SAYS ALAN FRIEDMAN WHO EDITS THE CHICAGOBASED TEAM MARKETING REPORT NEWSLETTER THE CONFERENCES ARE BECOMING MORE AGGRESSIVE IN MARKETING TIM ALLEN ASSISTANT COMMISSIONER FOR THE MIDWESTBASED BIG EIGHT CONFERENCE SAYS HARDEE'S FINANCIAL COMMITMENT GIVES IT RIGHTS TO POSTSEASON TOURNAMENT PROMOTIONS AND GAME TICKETS WE MUST APPROVE ANYTHING THEY DO HE ADDS HARDEE'S A UNIT OF IMASCO SAYS IT HASN'T DECIDED WHETHER TO SPONSOR GAME BROADCASTS HEALTHCARE REFORM MEANS NEW OPPORTUNITIES FOR HOSPITAL MARKETING STAFFS BUT THEY MAY NOT BE UP TO THE CHALLENGE A FORTHCOMING STUDY IN THE JOURNAL OF HOSPITAL MARKETING CONCLUDES THAT EFFECTIVE INNOVATIVE MARKETING BY INSTITUTIONS IS RARE AND ONLY MARGINALLY SUCCESSFUL IN BOOSTING PATIENT COUNTS THE BIGGEST MARKETING DECISION A HOSPITAL STILL MAKES IS WHERE TO LOCATE SAY COAUTHORS THOMAS S GRUCA OF THE UNIVERSITY OF IOWA AND DEEPIKA NATH OF YORK UNIVERSITY TORONTO ONE PROBLEM IS FINDING A UNIQUE PROGRAM ONCE A PHYSICIAN'S SEMINAR IS SEEN TO BE WORKING IT'S NOT DIFFICULT FOR ALL HOSPITALS TO DO ONE MR GRUCA SAYS THE SAME GOES FOR CHOLESTEROL SCREENINGS AND OTHER COMMUNITYRELATIONS EFFORTS AFTER SURVEYING MORE THAN 70 HOSPITALS IN THE CHICAGO METROPOLITAN AREA THE RESEARCHERS REPORT THAT SURPRISINGLY MANY HOSPITALS DO NOT MEASURE THE EFFECTIVENESS OF THEIR MARKETING PROGRAMS THAT CAN BE FATAL TO MARKETERS SAYS HOSPITAL CONSULTANT WILLIAM J WINSTON WHO NOTES THAT MARKETING STAFFS OFTEN ARE THE FIRST CASUALTIES OF BUDGET CUTS TO SEE HOW WELL THEY ARE DOING THE UNIVERSITY OF CHICAGO HOSPITALS ASK PATIENTS SUCH QUESTIONS AS WERE YOU GIVEN APPROPRIATE EMOTIONAL SUPPORT DURING YOUR STAY AND WERE YOU CALLED BY YOUR RIGHT NAME THOSE INQUIRIES HAVE BOOSTED SATISFACTION RATINGS SO MUCH THAT 30 HOSPITALS IN THE OAK BROOK ILLBASED UNIVERSITY HOSPITAL CONSORTIUM ARE ADOPTING THE IDEA DURING THE FLOODS THIS SUMMER WAGS REVISED IOWA'S SLOGAN FROM A PLACE TO GROW TO A PLACE TO ROW NOW CONVENTION AND TOURISM OFFICIALS AROUND THE STATE ARE POURING ON THE PROMOTION TO CONVINCE THE REST OF THE WORLD THAT THINGS WEREN'T AS BAD AS THEY LOOKED ON TELEVISION IOWA'S OPEN FOR BUSINESS BLARES THE HEADLINE IN ONE MAILING FEATURING COMPANIES EXPANDING IN THE STATE NO WADING SAY DES MOINESSPONSORED ADS IN NATIONAL PUBLICATIONS EXECUTIVES AT MEREDITH PIONEER HIBRED INTERNATIONAL AND OTHER BIG IOWABASED COMPANIES ARE BEING ENLISTED TO WRITE REASSURING LETTERS TO OUTOFSTATE COLLEAGUES THE STATE'S CONGRESSIONAL DELEGATION REQUESTED 1 MILLION IN FEDERAL EMERGENCY ASSISTANCE THAT WE CAN PUT DIRECTLY INTO OUR MARKETING TOURISM PROGRAM SAYS ALLAN THOMS DIRECTOR OF IOWA'S DEPARTMENT OF ECONOMIC DEVELOPMENT FLORIDA GOT SIMILAR AID AFTER HURRICANE ANDREW HE SAYS AS PART OF THEIR FLOOD DAMAGE CONTROL DES MOINES PROMOTERS MOVED UP A MEDIABLITZ TRIP TO NEW YORK AND FLEW IN A DOZEN TRAVEL WRITERS TO SURVEY A DRIEDOUT DOWNTOWN THE CITY'S CONVENTION AND VISITORS BUREAU PRODUCED A VIDEOTAPE PROMOTION SHOWING A MASSIVE FRESHWATER TOAST AFTER THE MUNICIPAL WATERWORKS GOT BACK ON LINE ONE AREA WHERE WE'RE STILL HURTING IS THE BUSINESS TRAVELER SAYS BUREAU PRESIDENT ELLEN BROWN TRAFFIC IS DOWN ABOUT 20 SO LOCAL BUSINESSES ARE BEING URGED TO RELOCATE ANY OUTOFTOWN MEETINGS TO DES MOINES THE CITY'S BOOTH AT RECENT CONVENTIONSOLICITATION MEETINGS FEATURED A SANDBAGGED WATER DISPENSER MEATLESS CRUSADERS PEOPLE FOR THE ETHICAL TREATMENT OF ANIMALS USE A SEVENFOOT CRIS P CARROT MASCOT TO DISTRIBUTE LEAFLETS WITH THE MESSAGE EAT YOUR VEGGIES NOT YOUR FRIENDS BUT SEVERAL MIDWESTERN SCHOOLS NERVOUS ABOUT OPENING UP THE SCHOOLS TO PROSELYTIZING WON'T LET THE CHARACTER CALL ON CLASSROOMS CELENTANO A VERONA NJ MAKER OF FROZEN ITALIAN ENTREES SWITCHES TO PLASTIC BAGS FROM PAPER CARTONS FOR SOME PRODUCTS BAGS CREATE LESS TRASH AND ARE CHEAPER IT SAYS 9309280003 930928 IN THE CROSS HAIRS POLITICIANS FIND NRA A VULNERABLE TARGET AS VIOLENCE FEARS RISE IN TWO GUBERNATORIAL RACES CANDIDATES PIN CHANCES ON BATTLING GUN LOBBY TESTING THE VOTERS' EMOTIONS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL EDISON NJ JIM ANDREWS HAS OPENED FIRE ON THE NATIONAL RIFLE ASSOCIATION AND HE IS DOING IT WITH RELISH MR ANDREWS WHO RUNS THE REELECTION CAMPAIGN OF NEW JERSEY GOV JIM FLORIO POPS INTO HIS VIDEO RECORDER A COPY OF AN AD SO GRAPHIC SOME TV STATIONS HAVE BALKED AT RUNNING IT IT SHOWS AN ASSAULT WEAPON BLAZING AWAY FADES TO A SHOT OF BULLETS SHREDDING A WATERMELON INTO FRUIT SALAD THEN CLOSES WITH A STARK LOGO AND A STERN ANNOUNCER BOTH URGING DEFEAT THE NRA IT ISN'T SUBTLE NOR IS MR ANDREWS'S ANALYSIS OF THE GUN LOBBY I'M STUNNED THAT MORE PEOPLE DON'T JUST TAKE THESE GUYS ON IN A SIGN OF CHANGING TIMES THE ONCEFEARED NRA IS BEING TAKEN ON IN A BIG WAY RIGHT NOW IN TWO OF THE MOST IMPORTANT CAMPAIGNS IN THE NATION THE RACES FOR GOVERNOR OF NEW JERSEY AND VIRGINIA IN BOTH PLACES DEMOCRATIC CANDIDATES MR FLORIO HERE AND STATE ATTORNEY GENERAL MARY SUE TERRY IN VIRGINIA HAVE CALCULATED THAT IT HAS BECOME GOOD POLITICS TO FLAUNT GUNCONTROL POSITIONS AND FRONTALLY ATTACK THE NRA THEY HAVE IN SHORT GONE LOOKING FOR A FIGHT THAT POLITICIANS ONCE RAN MILES TO AVOID THIS CALCULATION BY TWO ONETIME FRIENDS OF THE GUN LOBBY SPEAKS VOLUMES ABOUT SHIFTING PUBLIC ATTITUDES TOWARD CRIME AND THE ROLE THAT GUNS PLAY IN IT THE STEADY RATATATTAT OF URBAN VIOLENCE DRIVEBY SHOOTINGS CARJACKINGS WACOSTYLE FIREFIGHTS AND FLORIDA TOURIST MURDERS HAS RATCHETED UP FEARS ABOUT PERSONAL SAFETY AT THE SAME TIME A STRING OF RECENT LEGISLATIVE LOSSES HAS ERODED THE GUN LOBBY'S ONCEINVINCIBLE IMAGE AND THE CONTROVERSIAL STANDS THE NRA TOOK IN THOSE LEGISLATIVE FIGHTS NOTABLY ITS OPPOSITION TO A BAN ON ASSAULT RIFLES IN NEW JERSEY AND A LAW LIMITING PURCHASERS TO ONE HANDGUN A MONTH IN VIRGINIA HAVE MADE IT POSSIBLE FOR SKILLFUL POLITICIANS TO PORTRAY THE NRA AS ALMOST A RADICAL SPECIALINTEREST GROUP RATHER THAN THE BASTION OF REDBLOODED AMERICANISM IT HAS LONG CLAIMED TO BE AS A RESULT ADVOCATING MEASURES TO STOP THE FLOW OF ASSAULT RIFLES OR HANDGUNS HAS GONE FROM BEING A DANGEROUS PROPOSITION TO A WAY TO SCORE EASY POLITICAL POINTS AND PERHAPS DISTRACT ATTENTION FROM OTHER TOPICS INDEED THE GUNCONTROL ISSUE HAS HELPED MR FLORIO SHIFT THE SUBJECT AWAY FROM HIS UNPOPULAR TAX INCREASES AND TAKE THE LEAD IN SOME POLLS FROM REPUBLICAN CHRISTIE WHITMAN WHOM HE TRAILED BY 10 POINTS IN ONE SPRINGTIME SURVEY A GETTOUGH STAND AGAINST GUNPLAY APPEARS DESIGNED TO APPEAL IN PARTICULAR TO MIDDLECLASS SUBURBAN VOTERS MANY OF WHOM HAVE FELT MOST BETRAYED BY MR FLORIO'S EFFORTS TO BATTLE DEFICITS BY RAISING TAXES THE POLITICS OF GUN CONTROL HAVE CHANGED TO A DEGREE THAT IT'S WORTH THE RISK OF ANTAGONIZING THE GUN LOBBY MAINTAINS GEOFFREY GARIN A WASHINGTONBASED POLLSTER WHO WORKS FOR MR FLORIO THINGS LIKE ELIMINATING SEMIAUTOMATIC WEAPONS AND REQUIRING A WAITING PERIOD FOR THE PURCHASE OF A HANDGUN STRIKE A MAJORITY OF VOTERS ALMOST ANYWHERE IN AMERICA AS COMMON SENSE THE EMOTIONAL APPEAL OF THE ISSUE WAS VIVIDLY CLEAR LAST WEEK WHEN PRESIDENT CLINTON EARNED A ROUSING ROUND OF APPLAUSE DURING HIS HEALTHCARE SPEECH TO CONGRESS BY CALLING FOR CUTTING THE FLOW OF SOPHISTICATED WEAPONS INTO THE HANDS OF YOUNG AMERICANS THIS NOVEMBER'S GUBERNATORIAL RACES IN NEW JERSEY AND VIRGINIA ARE EMERGING AS POLITICAL LABORATORIES TO TEST WHETHER THOSE EASY EMOTIONS WILL TRANSLATE INTO HARD VOTES FOR ITS PART THE NRA CHARGES THAT BOTH MR FLORIO AND MS TERRY ARE ENGAGED IN OPPORTUNISM AND DIVERSION CHIEF NRA LOBBYIST JAMES BAKER SAYS MR FLORIO AND HIS ADVISERS MUST HAVE DECIDED THEY DON'T WANT TO RUN ON FLORIO'S RECORD THEY WANT TO RUN AGAINST THE NRA IT IS ENTIRELY POSSIBLE OF COURSE THAT FOR MOST VOTERS CONCERNS ABOUT GUNS TODAY WILL GIVE WAY TO BREADANDBUTTER ECONOMIC ISSUES BY ELECTION DAY THAT WOULD LEAVE ONLY HIGHLY ENERGIZED PRONRA PARTISANS TO CAST VOTES BASED ON THE GUNCONTROL QUESTION PENALIZING THE VERY CANDIDATES FOR WHOM IT APPEARS A POLITICAL PLUS TODAY AND THERE IS NO DOUBT THAT GUN OWNERS IN NEW JERSEY AND VIRGINIA REPRESENT A HORNET'S NEST THAT IS BUZZING WITH ANGER HERE IN NEW JERSEY THE ANGER HAS BEEN SIMMERING SINCE MR FLORIO PUSHED THROUGH THE LEGISLATURE A BAN ON SEMIAUTOMATIC ASSAULT RIFLES IN 1990 THE NRA AND THE COALITION OF NEW JERSEY SPORTSMEN A STATE ORGANIZATION AFFILIATED WITH IT HAVE DISTRIBUTED SOME 370000 BUMPER STICKERS PROCLAIMING FLORIO FREE IN '93 THE COALITION CURRENTLY IS CIRCULATING A HANDBILL SAYING MR FLORIO HAS DECLARED WAR ON HONEST GUN OWNERS SAYING THAT IT INTENDS TO TURN OUT 40000 CAMPAIGN WORKERS AND ASKING EACH GUN OWNER IN THE STATE TO VOLUNTEER AT LEAST ONE DAY THIS FALL TO WORK PROGUN ISSUES RICH MILLER CHAIRMAN OF THE COALITION PLAYS A NEW RADIO AD HIS GROUP HAS PRODUCED WHICH CONSISTS OF A JINGLE THAT ACCUSES MR FLORIO OF AMONG OTHER THINGS TAKING AWAY JOBS CHEATING TAXPAYERS AND CREATING HUNGRY MOUTHS AT HOME THE FLORIO ADS ATTACKING THE NRA ARE REINSTILLING THE ANGER IN OUR PEOPLE MR MILLER SAYS HE'S USING THE NRA AS A SCAPEGOAT I'M A HISTORY TEACHER I'VE READ ABOUT THIS KIND OF CAMPAIGN BEFORE IT ENDED IN A BUNKER IN FACT THE GOVERNORS' RACES OF 1993 ALSO COULD ILLUSTRATE SOME OF THE LIMITS OF GUN CONTROL AS A POLITICAL ATTACK WEAPON SOME POLLS IN VIRGINIA SUGGEST THAT MS TERRY WHO IS USING HER SUPPORT FOR A FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES AS A WEAPON AGAINST NRAENDORSED REPUBLICAN GEORGE ALLEN HAS ACTIVATED ALMOST AS MANY FOES AS SHE HAS SUPPORTERS CRIME HAS BECOME AN ISSUE NO DOUBT ABOUT THAT SAYS STEPHEN SALMORE A PROFESSOR OF POLITICAL SCIENCE AT RUTGERS UNIVERSITY'S EAGLETON INSTITUTE AND A CONSULTANT TO GOP CANDIDATES IN NEW JERSEY AND GUN CONTROL IS POPULAR NO DOUBT ABOUT THAT BUT THE POLLING WE'VE DONE INDICATES THAT PEOPLE DOUBT THAT GUN CONTROL IS ALL THAT EFFECTIVE EITHER WAY THE CLOSELY WATCHED RACES IN NEW JERSEY AND VIRGINIA ARE LIKELY TO COLOR THE PACE OF GUNCONTROL INITIATIVES IN OTHER STATES AND AT THE NATIONAL LEVEL IN WASHINGTON AND IT DOES SEEM CLEAR THAT THE GUNCONTROL ISSUE IS TOUCHING A NERVE WITH MORE AND MORE PEOPLE RIGHT NOW INCLUDING IN SOME PLACES THAT SEEM LEAST LIKELY AT JACK'S TAVERN IN CLARK NJ A VISITOR LAST WEEK WAS ABLE TO IGNITE A LIVELY DEBATE AMONG THE REGULAR LATEAFTERNOON PATRONS BY SIMPLY RAISING THE ISSUE OF GOV FLORIO'S BAN ON ASSAULT RIFLES BUT WHILE OTHERS WERE CYNICAL ABOUT THE EFFECTIVENESS OF GUN CONTROL BRUCE SACHENSKI DECLARED SIMPLY THAT THERE NOW ARE TOO MANY GUNS MR SACHENSKI CLAD IN A BASEBALL CAP AND TSHIRT ARGUED CAN YOU SEE MAKING IT EASY TO BUY AN ASSAULT WEAPON IT SHOULD BE AS HARD AS IT CAN BE AS FAR AS I'M CONCERNED THE SUBSTANTIVE ISSUES BEFORE VOTERS IN NEW JERSEY AND VIRGINIA ARE DIFFERENT IN NEW JERSEY MR FLORIO IS TRUMPETING HIS ROLE IN PASSING THE BAN ON ASSAULT RIFLES AND NARROWLY BEATING BACK AN ATTEMPT TO REPEAL IT HIS CAMPAIGN HAS PRODUCED ONE COMMERCIAL LINKING THE NRA TO HIS OPPONENT MS WHITMAN WHILE THE STATE DEMOCRATIC PARTY HAS PRODUCED ANOTHER THE ONE SHOWING BULLETS SMASHING THE MELON THE FLORIO AD CLAIMS THE NRA WILL SPEND 1 MILLION TO ELECT MS WHITMAN A FIGURE BASED ONLY ON A PASSING COMMENT BY UNNAMED NRA OFFICIALS QUOTED IN ONE NEWSPAPER CLIP AND ONE THAT THE NRA CALLS A FANTASY AND DECLARES THAT IT IS ALL HAPPENING BECAUSE JIM FLORIO HAD THE GUTS TO STAND UP TO THE NRA AND BAN ASSAULT WEAPONS THE DEMOCRATS' ADS SUGGEST THAT MS WHITMAN WOULD WATER DOWN THE ASSAULTWEAPONS BAN AND NOTE THE FACT THAT SHE MADE ONE APPEARANCE AT A STORE INDELICATELY NAMED CASO'S GUNARAMA MORE IMPORTANT POLITICALLY THE FLORIO CAMPAIGN IS TRYING TO BUILD ON THE ASSAULTWEAPON ISSUE TO PAINT A BROADER PICTURE OF A GOVERNOR WHO IS TOUGH ON CRIME MR FLORIO STRESSES HIS SUPPORT FOR MANDATORY SENTENCING FOR CARJACKERS AND FOR REVOKING THE DRIVER'S LICENSE OF A FIRSTTIME DRUNKDRIVING OFFENDER IT'S NOT JUST ABOUT GUNS INSISTS MR ANDREWS IT'S ABOUT WHAT KIND OF JUDGMENT YOU HAVE MOSTLY THOUGH IT IS ABOUT DIVERTING ATTENTION FROM FLORIOINSPIRED TAX INCREASES RESPONDS THE WHITMAN CAMPAIGN MS WHITMAN A WEALTHY LITTLEKNOWN STATE OFFICIAL UNTIL SHE NEARLY DEFEATED DEMOCRATIC SEN BILL BRADLEY THREE YEARS AGO AND HER AIDES WANT TO TALK ABOUT NEW JERSEY'S ECONOMIC PROBLEMS NOT GUN CONTROL SO THE WHITMAN CAMPAIGN DOESN'T DEFEND THE NRA BUT RATHER TRIES TO CHANGE THE SUBJECT HE HAS TRIED VERY HARD TO LINK CHRISTINE WHITMAN TO THE NRA WHICH IS JUST NOT TRUE SAYS WHITMAN SPOKESMAN CARL GOLDEN HE SAYS THE CANDIDATE DOESN'T HAVE OR WANT THE NRA'S ENDORSEMENT AND ISN'T TAKING ANY MONEY FROM THE NRA'S POLITICAL ACTION COMMITTEE THAT ASSERTION IS SUPPORTED BY A CHECK OF STATE RECORDS THROUGH THE FIRST SIX MONTHS OF THIS YEAR THOSE RECORDS ALSO SHOW THAT THE NRA CAN BRING FINANCIAL CLOUT TO BEAR HERE WHEN IT CHOOSES IN 1991 JUST AFTER THE ASSAULTWEAPONS BAN PASSED ITS PAC GAVE ALMOST 170000 TO NEW JERSEY CAMPAIGNS MR GOLDEN ALSO SAYS MS WHITMAN GENERALLY SUPPORTS A BAN ON ASSAULT RIFLES AND HAS TALKED ONLY OF MODIFICATIONS TO LEGALIZE WEAPONS ALREADY IN THE HANDS OF RESIDENTS BEFORE THE BAN WAS PASSED AND POSSIBLY TO EXEMPT A PARTICULAR KIND OF 22CALIBER RIFLE USED FOR TARGET PRACTICE AND AS FOR HER APPEARANCE AT THE GUNARAMA MR GOLDEN SAYS MS WHITMAN TURNED UP THERE BY ACCIDENT WHEN A POLICE OFFICER GIVING HER A TOUR OF HIS AREA STOPPED OFF BECAUSE THE STORE'S OWNER WAS A FRIEND IN NEW JERSEY AS ELSEWHERE THE TIDE TURNED IN FAVOR OF GUNCONTROL INITIATIVES IN RECENT YEARS PARTLY BECAUSE LAWENFORCEMENT ORGANIZATIONS BEGAN TO FAVOR THEM AS CRIMEPREVENTION MEASURES BUT IT IS ALSO TRUE THAT SOME OF THE HOPES ATTACHED TO MR FLORIO'S ASSAULTRIFLE BAN HAVE FADED THE STATE INITIALLY ESTIMATED THAT THE BAN WOULD MAKE ILLEGAL SOME 300000 GUNS CIRCULATING IN THE STATE BUT SUBSEQUENTLY HAS HAD TO REVISE THAT ESTIMATE TO ONLY ABOUT 40000 AND LOCAL NEWS REPORTS HAVE INDICATED THAT THE IMPACT OF THE BAN ON CRIME IS HARD TO SEE IN PART BECAUSE HANDGUNS ARE MORE OFTEN CRIMINALS' GUNS OF CHOICE THE IMPACT ON REDUCING CRIME HAS BEEN VIRTUALLY NIL SAYS CHARLES STEEN OW A FIREARMS STORE IN PASSAIC WHO SAYS ASSAULT RIFLES BANNED BY THE LAW ACCOUNTED FOR LESS THAN 5 OF HIS SALES STILL THE FLORIO CAMPAIGN IS COUNTING ON THE SENTIMENTS OF VOTERS SUCH AS STANLEY BORUSZKOWSKI PARTOWNER OF THE COLONIAL MOTOR COURT IN SPRINGFIELD NJ WHERE CLERKS WORK BEHIND BULLETPROOF GLASS THOUGH A GUN OWNER HIMSELF MR BORUSZKOWSKI SAYS OF ASSAULT RIFLES THEY SHOULD BAN THOSE COMPLETELY IN VIRGINIA MS TERRY WHO HAS SEEN AN EARLY LEAD ERODE AND NOW IS RUNNING NECKANDNECK WITH HER REPUBLICAN OPPONENT IS FOCUSING ON HER ADVOCACY OF A FIVEDAY WAITING PERIOD FOR THE PURCHASE OF HANDGUNS WHILE ALSO PROMOTING HER SUPPORT FOR A RECENTLY ENACTED STATE LAW LIMITING HANDGUN PURCHASERS TO ONE GUN A MONTH GOP CANDIDATE MR ALLEN A FORMER CONGRESSMAN AND SON OF THE LATE WASHINGTON REDSKINS FOOTBALL COACH DOESN'T BACK A FIVEDAY WAITING PERIOD WHICH HE CONSIDERS BASICALLY A GIMMICK SAYS SPOKESMAN KESTROUPE MR ALLEN ARGUES THAT A SYSTEM OF INSTANTANEOUS CHECKS OF A PURCHASER'S RECORDS IS MORE EFFECTIVE TO REALLY GET TOUGH ON CRIME MR STROUPE SAYS THE REPUBLICAN CANDIDATE WANTS TO CONSIDER ELIMINATING PAROLE AS IN NEW JERSEY THE DEBATE IN VIRGINIA IS TURNING NASTY MS TERRY'S CAMPAIGN IS RUNNING TV ADS THAT CALL MR ALLEN RECKLESS ON GUNS PAINT HIM AS A TOOL OF THE GUN LOBBY AND ACCUSE HIM OF TAKING 40000 IN HIDDEN CONTRIBUTIONS FROM IT THE ALLEN CAMPAIGN SAYS IT HAS SIMPLY ACCEPTED CONTRIBUTIONS FROM A POLITICAL ACTION COMMITTEE THAT HAD IN TURN TAKEN MONEY FROM THE NRA FOR ITS PART THE ALLEN CAMPAIGN CHARGES THAT MS TERRY IS SIMPLY AN OPPORTUNIST WHO HAS VEERED AWAY FROM HER ONCEFRIENDLY RELATIONS WITH THE NRA MR ALLEN'S COMMERCIALS NOW TURN THE TABLE BY CHARGING THAT DESPITE MS TERRY'S TOUGH TALK NOW VIOLENT CRIME IN VIRGINIA ROSE 26 WHILE SHE WAS ATTORNEY GENERAL THERE IS UNCERTAINTY ABOUT HOW WELL THIS ISSUE ACTUALLY IS WORKING FOR MS TERRY HER POSITION CLEARLY IS POPULAR A RECENT POLL CONDUCTED BY VIRGINIA COMMONWEALTH UNIVERSITY FOUND THAT 78 OF THOSE SURVEYED SUPPORTED A FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES AND 57 OF THOSE SURVEYED KNEW SHE FAVORED A FIVEDAY WAITING PERIOD FOR HANDGUN PURCHASES MORE PEOPLE KNEW WHERE SHE STOOD ON THAT ISSUE THAN ON ANY OTHER IN THE SURVEY BUT AMONG THOSE WHO KNEW WHERE SHE STOOD MS TERRY WAS TRAILING 42 TO 40 SUGGESTING MANY OF THOSE WHO ARE PAYING THE MOST INTENSE ATTENTION ARE THOSE WHO OPPOSE GUN CONTROL STILL TERRY AIDES STILL THINK SHE HAS A POWERFUL ISSUE PARTICULARLY AMONG SUBURBAN VOTERS IN THE NORTHERN PART OF VIRGINIA PEOPLE ARE SICK OF THE VIOLENCE SAYS TOM KING A CONSULTANT TO THE TERRY CAMPAIGN AND WHAT THEY DON'T WANT IS SOMEBODY IN THE HIP POCKET OF THE NRA 9309280002 930928 INTERNATIONAL BRIEF BRENT WALKER GROUP PLC PRETAX LOSS FOR FIRST HALF WIDENED ON INTEREST COSTS BRENT WALKER GROUP PLC SAID ITS PRETAX LOSS WIDENED IN THE FIRST HALF FROM A YEAR EARLIER BECAUSE OF HUGE INTEREST COSTS AND LOSSES ON ASSET SALES THE DEBTBURDENED OWNER OF THE WILLIAM HILL CHAIN OF UK BETTING SHOPS AND PUBMASTER A LARGE CHAIN OF BRITISH PUBS SAID IT AGAIN WAS UNABLE TO PAY A DIVIDEND ON ITS ORDINARY OR PREFERENCE SHARES BRENT WALKER SAID ITS LOSS WIDENED TO 833 MILLION 1258 MILLION FROM 794 MILLION SALES ROSE 10 TO 8589 MILLION THE COMPANY RECENTLY APPOINTED NM ROTHSCHILD & SONS LTD AND HILL SAMUEL BANK LTD TO ADVISE IT ON THE POSSIBLE STOCKMARKET FLOTATION OF THE 1670OUTLET WILLIAM HILL CHAIN AS A WAY OF RAISING CASH BRENT WALKER SAID THE 350 MILLION SYNDICATED LOAN TAKEN OUT TO FUND ITS 1989 ACQUISITION OF WILLIAM HILL IS DUE TO BE REPAID OR REFINANCED ON MARCH 1 1994 9309280001 930928 MARKETING & MEDIA CBS IN DEFEAT LETS CABLE FIRMS CARRY ITS SIGNALS FOR FREE BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CBS INC BOWING TO REALITY DECLARED THAT IT WOULD LET CABLE OPERATORS CARRY ITS STATIONS' SIGNALS FOR FREE FOR THE NEXT YEAR AFTER NEARLY A YEAR OF NEGOTIATIONS WITH CABLE COMPANIES CBS SAID IT WAS UNABLE TO CONCLUDE ANY MEANINGFUL AGREEMENT ON PROGRAMMING FEES WHICH STATIONS ARE NOW ALLOWED TO DEMAND FROM CABLE SYSTEMS UNDER THE CABLE ACT OF 1992 STATIONS THAT DON'T REACH AGREEMENTS OR GIVE FREE RETRANSMISSION CONSENT BY OCT 6 ARE REQUIRED UNDER THE LAW TO BE DROPPED BY CABLE SYSTEMS THE ANNOUNCEMENT WAS A MAJOR SETBACK FOR CBS WHICH HAD LOBBIED VIGOROUSLY FOR THE LEGISLATION THE LAW FOR THE FIRST TIME IS MEANT TO COMPENSATE STATIONS FOR THE VALUE OF THEIR SIGNALS WHICH CABLE SYSTEMS PREVIOUSLY COULD CARRY FOR FREE CBS EXECUTIVES MISCALCULATED HOWEVER BY INSISTING THAT CBS BE PAID IN CASH FOR THE RIGHT TO CARRY ITS SEVEN STATIONS WHEN VIRTUALLY ALL THE MAJOR CABLE OPERATORS SAID THEY WOULDN'T PAY CASH OTHER LARGE STATION GROUPS RELENTED AND BEGAN ACCEPTING NEW CHANNELS ON THE CABLE BOX FOR NETWORKS THEY PLAN TO START CAPITAL CITIES/ABC INC WAS THE FIRST TO DROP ITS CASH DEMANDS ACCEPTING CHANNEL SPACE FOR A NEW CABLE NETWORK ESPN2 INSTEAD LATER THIS YEAR ABC WILL LAUNCH THE NEW SPORTS NETWORK IN A JOINT VENTURE WITH HEARST CORP AS ITS COMPENSATION GENERAL ELECTRIC CO'S NBC UNIT ACCEPTED MORE EXTENSIVE CARRIAGE BY CABLE OPERATORS OF ITS CNBC NETWORK ALONG WITH CHANNEL SPACE FOR ITS NEW AMERICA'S TALKING NETWORK WHICH IT EXPECTS TO LAUNCH SOMETIME AFTER MID1994 MEANWHILE NEWS CORP'S FOX UNIT GOT SPACE FOR AN ENTERTAINMENT CABLE NETWORK DUBBED FX ALL THREE ALSO GOT CASH FEES WHICH CABLE OPERATORS LABELED AS PERSUBSCRIBER PAYMENTS FOR THE NEW CABLE NETWORKS CBS NOW WINDS UP WITH NOTHING CBS ASKED CABLE OPERATORS FOR 10 CENTS PER CABLE SUBSCRIBER PER MONTH FOR USE OF ITS SIGNALS IN THE FIRST YEAR ESCALATING TO 20 CENTS IN THE SECOND YEAR AND 30 CENTS IN THE THIRD BUT WHEN IT BECAME APPARENT THAT NO CASH DEALS WOULD BE FORTHCOMING WITH MAJOR CABLE OPERATORS CBS BELATEDLY SWITCHED TO AN ATTEMPT AT PUTTING TOGETHER A NEW CABLE NETWORK LOOKING AT 20 DIFFERENT POSSIBILITIES E OCT 6 DEADLINE LOOMED HOWEVER CABLE OPERATORS REJECTED CBS'S PLAN FOR A NEWS NETWORK AN ENTERTAINMENT NETWORK WITH RERUNS OF OLD CBS SHOWS AND A SPORTS NEWS NETWORK CBS'S OTHER OPTION WOULD HAVE BEEN TO PULL ITS STATIONS FROM CABLE SYSTEMS NEXT WEEK JUST IN TIME FOR BASEBALL'S WORLD SERIES TO WHICH CBS HAS THE RIGHTS BUT THE SPECTER OF MASS CONFUSION FOR VIEWERS AND THE FEAR THAT THEY WOULD BLAME CBS NOT THE CABLE SYSTEMS LED CBS TO YESTERDAY'S ANNOUNCEMENT WE DO NOT BELIEVE IT'S FAIR TO PUNISH VIEWERS IN THE MARKETS IN WHICH WE OWN TELEVISION STATIONS FOR THE INTRANSIGENCE OF CABLE OPERATORS SAID CBS CHAIRMAN LAURENCE TISCH CBS'S ANNOUNCEMENT WAS ACCOMPANIED BY SOME HARSH WORDS FOR CABLE OPERATORS WE'RE NEGOTIATING WITH A MONOPOLY SAID ONE EXECUTIVE IN HIS STATEMENT MR TISCH SAID WE ARE AT A LOSS AS TO WHAT THE CABLE INDUSTRY DOES WANT SHORT OF OUR ABJECT SURRENDER AMOS HOSTETTER JR CHAIRMAN OF CONTINENTAL CABLEVISION INC SAID CBS SHOULD BLAME ITSELF NOT THE CABLE INDUSTRY FOR FAILING TO COME UP WITH A REASONABLE ALTERNATIVE TO CASH UNTIL WELL PAST THE ELEVENTH HOUR SENSIBLE BUSINESS PLANS CANNOT BE DEVELOPED OR SOLD IN THE TENSIONS OF HIGH NOON CBS FOR ITS PART SAID THAT IT WOULD CONTINUE TO SEEK FAIR VALUE FOR ITS SIGNALS AND THAT IT WOULD EXPLORE OPTIONS WITH REGIONAL PHONE COMPANIES AND OTHER POTENTIAL CABLE COMPETITORS 9309270160 930927 CLINTON BACKS AWAY FROM PLAN TO WEAKEN WELFARE WORK RULES WASHINGTON AP THE CLINTON ADMINISTRATION IS BACKING AWAY FROM A PLAN TO WEAKEN WORK REQUIREMENTS FOR THOUSANDS OF MARRIED PARENTS ON WELFARE THE DEPARTMENT OF HEALTH AND HUMAN SERVICES WITHDREW ITS PLAN FRIDAY THREE DAYS AFTER OUTLINING THE SHIFT IN POLICY IN A MEMO TO STATE WELFARE AGENCIES SEN ALFONSE M D'AMATO R NY ACCUSED THE ADMINISTRATION OF WEAKENING THE WORK REQUIREMENTS AT THE SAME TIME PRESIDENT CLINTON HAS PROMISED TO OVERHAUL THE WELFARE SYSTEM AND FORCE RECIPIENTS TO TAKE A JOB AFTER TWO YEARS ON THE ROLLS THE WORK REQUIREMENTS ARE TO TAKE EFFECT FRIDAY AND REQUIRE STATES TO FIND JOBS OR JOB TRAINING FOR AS MANY AS 120000 UNEMPLOYED PARENTS ON WELFARE THE ADMINISTRATION HAD TRIED TO POSTPONE THE EFFECTIVE DATE FOR TWO YEARS BUT CONGRESS REFUSED NOW THAT THEY CAN'T DELAY ANY LONGER THE ADMINISTRATION IS NOW TRYING TO WATER DOWN THESE WORK REQUIREMENTS MR D'AMATO SAID THURSDAY AFTER LEARNING ABOUT THE ADMINISTRATION'S MEMO BUT BEFORE IT WAS WITHDRAWN FRIDAY IT'S CLEAR THAT THIS ADMINISTRATION IS EVADING WELFARE REFORM THE ADMINISTRATION AS WELL AS STATE WELFARE AGENCIES AND ADVOCATES FOR THE POOR HAD ARGUED THAT THE CHANGES WOULD HAVE GIVEN STATES FLEXIBILITY TO DESIGN WORK PROGRAMS TO HELP PARTICIPANTS FIND PERMANENT JOBS BUT ON FRIDAY A SENIOR OFFICIAL AT HHS SAID THE PLAN HAD BEEN SCRAPPED HHS DECIDED TO CONDUCT A FURTHER REVIEW AFTER RECEIVING QUESTIONS FROM LAWMAKERS AND STATE WELFARE AGENCIES SAID THE OFFICIAL WHO SPOKE ON CONDITION OF ANONYMITY STATES AND ADVOCATES FOR THE POOR HAVE COMPLAINED THAT THE NEW RULES WILL FORCE THEM TO SHIFT MONEY AWAY FROM TRAINING AND EDUCATION PROGRAMS FOR SINGLE MOTHERS ON WELFARE INTO CREATING COMMUNITY SERVICE JOBS FOR LAIDOFF FATHERS 9309270159 930927 TECHNOLOGY SCULLEY'S SHIFT WAS FORCED SUIT ARGUES APPLE EXOFFICER ASSERTS CHAIRMAN SURRENDERED CEO ROLE INVOLUNTARILY BY G CHRISTIAN HILL STAFF REPORTER OF THE WALL STREET JOURNAL WHEN JOHN SCULLEY RESIGNED AS APPLE COMPUTER INC'S CHIEF EXECUTIVE OFFICER ON JUNE 18 THE MOVE WAS ASSIDUOUSLY PORTRAYED BY APPLE'S OUTSIDE DIRECTORS AS MR SCULLEY'S IDEA A VOLUNTARY DECISION TO CONCENTRATE ON STRATEGY AS CHAIRMAN WHILE HIS HANDPICKED SUCCESSOR MICHAEL SPINDLER RAN DAYTODAY OPERATIONS IN INTERVIEWS AT THE TIME MR SCULLEY SAID THAT HE HAD BEEN CONSIDERING HANDING THE REINS TO MR SPINDLER FOR A LONG WHILE AC MARKKULA JR AN APPLE COFOUNDER AND OUTSIDE DIRECTOR SAID THAT WE HAVE TO RESPECT JOHN'S WISHES ARTHUR ROCK ANOTHER OUTSIDE DIRECTOR AND WELLKNOWN VENTURE CAPITALIST SAID THEN THAT MR SCULLEY HAD MADE STRONG HINTS ABOUT GIVING UP THE TOP POST ADDING THAT IT'S JUST A NATURAL PROGRESSION BUT LAST WEEK A FORMER APPLE OFFICER AND DIRECTOR SAID IN A WRONGFULDISMISSAL LAWSUIT THAT MR SCULLEY HAD BEEN FORCED TO STEP DOWN BY THE OUTSIDE DIRECTORS AND THAT THEY HAD CONDUCTED SECRET TALKS WITH MR SPINDLER FOR SEVERAL MONTHS ABOUT HIS SUCCEEDING MR SCULLEY AS CHIEF EXECUTIVE OFFICER IF TRUE THE ALLEGATIONS SUGGEST THAT THE BOARD AND MR SCULLEY CONDUCTED AN ELABORATE CHARADE TO PROTECT BOTH HIS IMAGE AND THE COMPANY'S EVEN BEFORE THE SUIT THE OFFICIAL APPLE LINE WAS WIDELY DISBELIEVED IN SILICON VALLEY TO THE POINT THAT DIRECTORS WERE SOMETIMES CALLED THE THESPIANS ALBERT A EISENSTAT APPLE'S FORMER EXECUTIVE VICE PRESIDENT AND AN INSIDE DIRECTOR SINCE 1985 PROVIDED THE BEHINDTHESCENES VIEW OF MR SCULLEY'S DEMOTION IN A LAWSUIT HE FILED IN STATE SUPERIOR COURT IN SAN JOSE LATE WEDNESDAY THE CUPERTINO CALIF COMPANY DISCLOSED THE SUIT FRIDAY MR EISENSTAT 63 SAID HE WAS FORCED OUT BY MR SPINDLER AND THAT HIS OUSTER WAS A BREACH OF CONTRACT AND AGE DISCRIMINATION AMONG OTHER THINGS HE IS SEEKING UNSPECIFIED DAMAGES MR EISENSTAT HAD UNTIL RECENTLY BEEN A LONGTIME SCULLEY LOYALIST WHO HELPED HIM OUST APPLE COFOUNDER AND CHAIRMAN STEVEN P JOBS IN 1985 UNTIL MR SPINDLER BECAME CHIEF OPERATING OFFICER IN JANUARY 1990 MR EISENSTAT WAS CONSIDERED MR SCULLEY'S RIGHTHAND MAN WHO HELPED MAINTAIN ORDER IN THE OFTENCHAOTIC APPLE CULTURE HE DESCRIBED HIMSELF IN THE SUIT AS APPLE'S VOICE OF REASON ALTHOUGH APPLE INSIDERS SAID HE HAS HAD LITTLE TO DO IN THE PAST TWO YEARS IN TWO PREPARED STATEMENTS APPLE SAID MR EISENSTAT'S POSITION WAS ELIMINATED IN A RESTRUCTURING IN JUNE THAT INCLUDED THE LAYOFF OF 2500 OTHER PEOPLE AND THAT HE HAD RESIGNED AS A DIRECTOR IT SAID MR EISENSTAT WAS OFFERED A STANDARD EXECUTIVE SEVERANCE PACKAGE BUT DECLINED HE DIDN'T THINK IT WAS SUFFICIENT APPLE SAID ADDING THAT HE HAS BEEN GENEROUSLY COMPENSATED BY APPLE FOR MANY YEARS FOR HIM TO SUGGEST HE WASN'T TREATED FAIRLY IS DISINGENOUS MR EISENSTAT'S 1992 SALARY WAS 749164 AND CASH BONUSES TOTALED 760564 FROM 1990 TO 1992 HE OWNS OPTIONS TO BUY APPLE SHARES VALUED AT ABOUT 65 MILLION APPLE SAID IT WOULD DEFEND ITSELF VIGOROUSLY AND THAT THE ALLEGATIONS IN THE SUIT INCLUDING THE CLAIMS THAT MR SCULLEY WAS OUSTED ARE WITHOUT MERIT MR EISENSTAT DECLINED TO COMMENT MESSRS SCULLEY MARKKULA AND ROCK DIDN'T RESPOND TO REQUESTS FOR COMMENT MR ROCK RESIGNED HIS DIRECTORSHIP ON AUG 4 AT THE TIME HE WAS ASKED IF MR SCULLEY HAD IN EFFECT BEEN FORCED FROM HIS TOP POST MR ROCK REPLIED I DON'T WANT TO GET INTO THAT BUT MR EISENSTAT SAID IN HIS SUIT THAT THIS SPRING IT BECAME APPARENT TO THE BOARD OF DIRECTORS THAT MR SCULLEY WAS NOT FOCUSED ON THE DAYTODAY OPERATIONS OF APPLE OTHER THAN ON TECHNOLOGY AND THAT APPLE NEEDED A FULLTIME CHIEF EXECUTIVE OFFICER HE SAID HE AGREED TO THE OUTSIDE DIRECTORS' REQUEST TO CONDUCT TALKS WITH MR SPINDLER WHO WAS THEN PRESIDENT TO DETERMINE WHETHER HE WAS WILLING AND ABLE TO TAKE THE TOP JOB MR SPINDLER EXPRESSED HIS DESIRE TO BE CEO THE SUIT SAID AND THE TALKS WENT ON UNTIL MIDJUNE ON JUNE 17 A SPECIAL BOARD MEETING WAS CALLED TO REVIEW A SUDDEN FINANCIAL DOWNTURN THE SUIT SAID A PRICE WAR IN THE PERSONALCOMPUTER BUSINESS HAD DRAINED APPLE TO THE POINT IT WAS BARELY MAKING MONEY WHICH DIDN'T BECOME PUBLICLY KNOWN FOR TWO MORE WEEKS AFTER A REVIEW OF THE EVENTS THE OUTSIDE DIRECTORS ASKED THE INSIDE DIRECTORS MESSRS SPINDLER SCULLEY AND EISENSTAT TO LEAVE THE ROOM THE FIRST INSIDE DIRECTOR ASKED TO RETURN TO THE MEETING WAS MR SCULLEY WHO WAS THEN ASKED TO STEP DOWN AS CEO BUT TO REMAIN AS CHAIRMAN THE SUIT SAID CORPORATIONS SELDOM AIR THEIR DIRTY LINEN IN PUBLIC BUT IF THE ALLEGATIONS ARE TRUE MR SCULLEY AND THE OUTSIDE DIRECTORS WENT TO UNUSUAL LENGTHS TO MISREPRESENT EVENTS APPLE CRITICS LONG HAVE CHARGED THAT MR SCULLEY WAS BETTER AT BURNISHING HIS IMAGE AS A TECHNOLOGICAL GURU AND APPLE'S IMAGE AS A TECHNOLOGY LEADER THAN IN RUNNING THE COMPANY OR PUSHING KEY NEW PRODUCTS OUT THE DOOR UNDER MR SCULLEY APPLE UNTIL RECENTLY GENERATED THE INDUSTRY'S HIGHEST PROFITS BY SQUEEZING MORE PERFORMANCE FROM THE MACINTOSH INVENTED ON MR JOBS' WATCH BUT MR SCULLEY MADE MANY MISTAKES HE MISSED A KEY OPPORTUNITY IN THE 1980S TO ESTABLISH THE MACINTOSH OPERATING SYSTEM AS THE INDUSTRY STANDARD A ROLE ASSUMED BY MICROSOFT CORP HE WAS LATE TO MARKET WITH A NOTEBOOK COMPUTER A COLOR MACINTOSH A LOWCOST MACINTOSH AND A POWERFUL SERVER COMPUTER SUCH NEW PRODUCTS AS THE POWERBOOK DUO AND A COLOR PRINTER ARE CONSIDERED FLOPS MR SCULLEY SPENT THE LAST 18 MONTHS TOUTING A HANDHELD COMMUNICATOR CALLED THE NEWTON INTRODUCED AUG 2 BUT DESPITE SOME INITIAL STRONG SALES IT HAS BEEN PLAGUED BY DEFECTS AND CONDEMNED BY SOME AS AN EMBARRASSING MISTAKE A PROMINENT INDUSTRY NEWSLETTER RECENTLY URGED MR SCULLEY TO RECALL THE NEWTON ON JULY 15 APPLE ANNOUNCED A LOSS OF 1883 MILLION OR 163 A SHARE FOR ITS FISCAL THIRD QUARTER ITS STOCK HAS FALLEN 62 THIS YEAR FINISHING AT 25 A SHARE FRIDAY IN NATIONAL OVERTHECOUNTER TRADING 9309270158 930927 WHO'S NEWS FRUEHAUF TRAILER CORP FRUEHAUF TRAILER CORP SOUTHFIELD MICH TIMOTHY J WIGGINS FORMERLY A CONSULTANT WITH GLASS & ASSOCIATES WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION 9309270157 930927 WHO'S NEWS SPIRE CORP SPIRE CORP BEDFORD MASS RICHARD S GREGORIO WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF FINANCE AND ADMINISTRATION SINCE 1989 MR GREGORIO HAS BEEN TREASURER OF SPIRE A MAKER OF THINFILM MATERIALS FOR THE MEDICAL AND ELECTRONICS FIELDS 9309270156 930927 WHO'S NEWS WR GRACE & CO WR GRACE & CO BOCA RATON FLA PAMELA J HAMILTON FORMERLY VICE PRESIDENT HUMAN RESOURCES AT NORTHERN TELECOM LTD WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT HUMAN RESOURCES OF THIS SPECIALTY CHEMICALS AND SPECIALIZED HEALTHCARE CONCERN 9309270155 930927 WHO'S NEWS EURO BROKERS INC EURO BROKERS INC NEW YORK THIS FINANCIAL SERVICES GROUP NAMED PETER SHAPIRO A FORMER CANDIDATE FOR GOVERNOR IN NEW JERSEY TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT MR SHAPIRO 41 YEARS OLD WAS PREVIOUSLY VICE PRESIDENT AND MANAGER OF THE TAXEXEMPT DERIVATIVES GROUP AT CITICORP 9309270154 930927 TECHNOLOGY BRIEF NORTHGATE COMPUTER SYSTEMS INC THIRDPERIOD LOSS EXPECTED FIRM'S LEASE IS TERMINATED NORTHGATE COMPUTER SYSTEMS INC A MINNEAPOLIS MAILORDER COMPUTER VENDOR SAID ITS LANDLORD HAS TERMINATED ITS LEASE AND CALLED A 15 MILLION LETTER OF CREDIT NORTHGATE SAID THE MOVES COMBINED WITH A DROP IN SALES AND WHAT THE COMPANY TERMED SEVERE CASH FLOW PROBLEMS WOULD RESULT IN A SUBSTANTIAL LOSS IN THE THIRD QUARTER NORTHGATE REPORTED NET INCOME IN THE SECOND QUARTER OF 527000 OR ONE CENT A SHARE ON REVENUE OF 213 MILLION THE COMPANY IN A NEWS RELEASE SAID IT PLANS TO MOVE INTO NEW OFFICE SPACE IN A WESTERN MINNEAPOLIS SUBURB THAT IS ABOUT ONEFIFTH THE SIZE OF ITS CURRENT FACILITY HOW THEY EVEN MADE IT THIS FAR IS BEYOND ME SAID JOHN TUSCHNER AN ANALYST AT PROTECTIVE GROUP SECURITIES IN MINNEAPOLIS THE PERSONAL COMPUTER BUSINESS IS INCREDIBLY TIGHT OUT THERE NORTHGATE OFFICIALS COULDN'T BE REACHED FOR COMMENT 9309270153 930927 WHO'S NEWS GILBERT ASSOCIATES INC GILBERT ASSOCIATES INC READING PA TIMOTHY S COBB 51 YEARS OLD WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS TECHNICAL SERVICES HOLDING CONCERN IN MARCH MR COBB WHO HAS BEEN PRESIDENT OF GILBERT/COMMONWEALTH INC A SUBSIDIARY SUCCEEDS ALEXANDER F SMITH 64 WHO WILL RETIRE MR COBB ALSO WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO EIGHT 9309270152 930927 GENERAL SIGNAL PLANS ACQUISITION STAMFORD CONN GENERAL SIGNAL CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE UNITED DOMINION INDUSTRIES LTD'S LAYNE & BOWLER UNIT TERMS WEREN'T DISCLOSED LAYNE & BOWLER WHICH DESIGNS AND MANUFACTURES VERTICAL PUMPS FOR INDUSTRIAL APPLICATIONS AND AGRICULTURAL IRRIGATION HAD ABOUT 35 MILLION IN SALES IN 1992 UNITED DOMINION IS BASED IN CHARLOTTE NC 9309270151 930927 MID ATLANTIC REALTY BUYS MALL LINTHICUM MD MID ATLANTIC REALTY TRUST SAID IT WAS THE SUCCESSFUL BIDDER IN US BANKRUPTCY COURT FOR THE ACQUISITION OF A BALTIMOREAREA SHOPPING MALL FOR 38 MILLION THE COMPANY SAID TIMONIUM MALL CONTAINS ABOUT 231000 LEASABLE SQUARE FEET AS PREVIOUSLY REPORTED MID ATLANTIC RECENTLY COMPLETED A PUBLIC OFFERING OF 3450000 COMMON SHARES AND MERGED WITH BTR REALTY INC 9309270150 930927 LETTERS TO THE EDITOR WE HAVE THE RIGHT IN THE COURSE OF THRICE ELEVATING ME TO THE RANK OF GENERAL MOST RECENTLY IN EDITORIALS OF SEPT 2 GENERAL DINGELL II AND SEPT 15 GENERAL DINGELL III YOU HAVE MANAGED TO SET NEW RECORDS FOR MISSTATEMENTS AND FALSE ASSUMPTIONS CONCERNING THE OVERSIGHT AND INVESTIGATIONS SUBCOMMITTEE'S ENVIRONMENTAL CRIMINAL ENFORCEMENT INQUIRY FIRST YOU CITE FORMER ATTORNEY GENERAL BENJAMIN CIVILETTI'S VIEWS TO BUTTRESS YOUR OWN MR CIVILETTI IS OTHER THAN A DISINTERESTED PARTY HIS FIRM HAS A THRIVING ENVIRONMENTAL CRIMES DEFENSE PRACTICE WAS INVOLVED IN THE DEFENSE OF CHEMICAL WASTE MANAGEMENT A CASE DISCUSSED IN THE SUBCOMMITTEE'S SEPTEMBER 1992 HEARING AND REPRESENTS CLIENTS IN SEVERAL OTHER CASES UNDER REVIEW MR CIVILETTI HAS NOT BOTHERED TO SHARE HIS CONCERNS DIRECTLY WITH THE SUBCOMMITTEE SECOND THE CONSTITUTIONAL PRECEDENT FOR OVERSIGHT OF PROSECTORIAL DECISIONMAKING WAS SET WELL OVER 60 YEARS AGO IN RESPONSE TO THE TEAPOT DOME SCANDAL IN MCGRAIN V DAUGHERTY THE SUPREME COURT EXPRESSLY ACKNOWLEDGED THE RIGHT OF CONGRESS TO INVESTIGATE ALLEGATIONS OF MALADMINISTRATION AT THE JUSTICE DEPARTMENT A PRECEDENT SINCE STRENGTHENED AND REAFFIRMED THIRD IT HAS LONG BEEN THE PRACTICE OF THIS SUBCOMMITTEE AND OTHER COMMITTEES TO INTERVIEW AND RECEIVE TESTIMONY FROM CAREER PROSECUTORS ON A VARIETY OF ISSUES INCLUDING DEFENSE PROCUREMENT FRAUD AND CUSTOMS AND IMPORT VIOLATIONS LAST YEAR THE BUSH ADMINISTRATION COOPERATED BY MAKING A LINE ATTORNEY AVAILABLE FOR AN INTERVIEW IN OUR ENVIRONMENTAL CRIMES INQUIRY THE JUSTICE DEPARTMENT IS PARTICULARLY COOPERATIVE WHEN ITS PERSONNEL OR PROGRAMS ARE SHOWCASED IN A FAVORABLE LIGHT OR WHEN IT WISHES TO AIR COMPLAINTS ABOUT OTHER DEPARTMENTS FOURTH THE SUBCOMMITTEE'S AIM AS STATED IN ITS SEPT 10 1992 HEARING AND SUBSEQUENTLY IS TO PURSUE NUMEROUS ALLEGATIONS OF MALADMINISTRATION MADE BY LAW ENFORCEMENT PERSONNEL AND REPUBLICAN OFFICIALS THE MOST CURSORY READING OF THE SUBCOMMITTEE'S HEARING RECORD SHOWS THAT THESE ALLEGATIONS FOCUS ON SERIOUS PROCEDURAL IRREGULARITIES ON DECISIONS ALLEGED TO BE WELL OUTSIDE ANY REASONABLE ZONE OF PROSECUTORIAL DISCRETION AND ON EFFORTS TO UNDERMINE THE WORK OF CAREER LINE ATTORNEYS IN THE FIELD AND IN HEADQUARTERS IN LIGHT OF THIS LAST POINT YOUR RINGING DEFENSE OF CAREER LINE PROSECUTORS IN THE SEPT 15 EDITORIAL HAS A HOLLOW TONE FIFTH THE SUBCOMMITTEE IS UNAWARE THAT ANY OF THE CAREER LAWYERS INTERVIEWED TO DATE HAVE EXPERIENCED FEAR OR INTIMIDATION AS A CONSEQUENCE OF THE BIPARTISAN STAFF INTERVIEWS TO THE CONTRARY THE INTERVIEWS HAVE BEEN CONDUCTED WITH UTMOST PROFESSIONALISM INTERVIEWERS HAVE BEEN FREE TO HAVE COUNSEL PROVIDED BY JUSTICE PRESENT AT THE INTERVIEWS AND TO REQUEST A STENOGRAPHER IN FACT PRIOR TO THESE INTERVIEWS WE LEARNED THAT A GREATER CONCERN TO MANY DEDICATED CAREER ATTORNEYS WAS POSSIBLE INTIMIDATION BY CERTAIN SUPERVISORY PERSONNEL AT JUSTICE WHO APPARENTLY RESENT FULL DISCUSSION OF THESE MATTERS FOR THE RECORD I HAVE NO DESIRE TO SERVE AS AN ATTORNEY GENERAL OR ANY OTHER KIND OF GENERAL HAVING RECEIVED AN HONORABLE DISCHARGE FROM THE US ARMY WITH THE RANK OF FIRST LIEUTENANT I WAS PLEASED TO LEARN THAT BENJAMIN CIVILETTI SPOKE OUT AGAINST THE CONGRESSIONAL WITCHHUNT OF THE JUSTICE DEPARTMENT'S ENVIRONMENTAL CRIMES SECTION FROM 1985 TO 1988 I SERVED AS A JUNIOR ATTORNEY IN THAT SECTION DURING MY TENURE I PROSECUTED A PROMINENT BUSINESSMAN IN NEW ENGLAND BEFORE THE GRAND JURY INDICTED WE GOT WIND THAT THE CONGRESSIONAL DELEGATION FROM HIS STATE WAS PRESSURING THE DEPARTMENT NOT TO PROCEED I DISTINCTLY RECALL LEARNING DURING A BRIEFING OF MY REAGANAPPOINTED SUPERVISOR ABOUT THE POLITICAL ATTEMPTS TO DEFUSE THE CASE HIS RESPONSE WAS THAT POLITICS SHOULD NOT AND DO NOT PLAY ANY ROLE IN THE DECISION WHETHER TO USE CRIMINAL SANCTIONS AGAINST AN INDIVIDUAL OR COMPANY I WISH REP DINGELL'S STAFF HAD TAKEN THE TIME TO INTERVIEW ME ABOUT WHAT WENT ON WITHIN THE DEPARTMENT BY PURSUING POLITICS RATHER THAN THE TRUTH REP DINGELL UNDERMINES THE VERY PRINCIPLE HE SEEKS TO PROMOTE AND IN THE PROCESS DAMAGES THE CAREERS OF MANY DEDICATED PUBLIC SERVANTS THE NATION'S ENVIRONMENTAL ENFORCEMENT PROGRAM AND THE ENVIRONMENT DESERVE BETTER 9309270149 930927 CONVICTION OF IMELDA MARCOS MAY GIVE A BOOST TO PHILIPPINE ANTIGRAFT EFFORT BY REGINALD CHUA STAFF REPORTER OF THE WALL STREET JOURNAL MANILA A PHILIPPINE COURT'S CONVICTION OF IMELDA MARCOS ON GRAFT CHARGES MAY HELP RESTORE PUBLIC CONFIDENCE IN THE GOVERNMENT'S SEVENYEAROLD EFFORT TO RECOVER BILLIONS OF DOLLARS ALLEGEDLY LOOTED FROM THE NATION BY MRS MARCOS AND HER LATE HUSBAND FERDINAND MARCOS THE COURT ON FRIDAY FOUND MRS MARCOS GUILTY OF TWO CHARGES FILED UNDER AN ANTIGRAFT LAW AND SENTENCED HER TO 18 TO 24 YEARS IN JAIL MARKING THE FIRST SUCCESSFUL CRIMINAL PROSECUTION OF THE FORMER FIRST LADY ALTHOUGH THE JUDGMENT WON'T LEAD DIRECTLY TO THE RECOVERY OF ANY MONEY TO A CERTAIN EXTENT THIS IS A BREAKTHROUGH SAID MAGTANGGOL GUNIGUNDO CHAIRMAN OF THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT THE COMMISSION WAS SET UP IN 1986 TO TRACK DOWN ILLGOTTEN WEALTH AMASSED BY THE MARCOSES AND THEIR CRONIES DURING MR MARCOS'S 21YEAR RULE THE VERDICT MAY IN EFFECT BRING THE SIGNAL TO ALLEGED CRONIES AND OTHER ACCUSED TO IMMEDIATELY THINK OF WAYS AND MEANS TO COME TO TERMS WITH THE GOVERNMENT MR GUNIGUNDO SAID THE COMMISSION SO FAR HAS RECOVERED ONLY ABOUT 14 BILLION PESOS 500 MILLION FAR BELOW THE 5 BILLION OR MORE MR GUNIGUNDO ALLEGES THE MARCOSES AMASSED BEFORE THEY WERE OUSTED SEVEN YEARS AGO AS THE EFFORT TO RECOVER FUNDS HAS DRAGGED ON MANY POLITICIANS HAVE CRITICIZED THE COMMISSION'S TACTICS MORE THAN 100 CONGRESSMEN ABOUT HALF THE TOTAL HAVE SPONSORED BILLS TO SCRAP THE COMMISSION IF IT MANAGES TO SHOW TANGIBLE PROGRESS SOON THE COMMISSION MIGHT BE ABLE TO BLUNT SUCH OPPOSITION FRIDAY'S JUDGMENTS HOWEVER DON'T INVOLVE ANY PRIVATE GAINS MADE BY MRS MARCOS WHO WAS KNOWN FOR HER SHOPPING SPREES WHILE IN POWER THE JUDGMENTS ESTABLISH ONLY THAT MRS MARCOS AS HEAD OF THE LIGHT RAIL TRANSIT AUTHORITY RENTED PROPERTY IN 1982 AND 1984 TO THE PHILIPPINE GENERAL HOSPITAL FOUNDATION OF WHICH SHE ALSO WAS CHAIRWOMAN AT PRICES THAT WERE A QUARTER TO HALF THE MARKET RATE THE GOVERNMENT LOST 124 MILLION PESOS ON THE DEALS ACCORDING TO THE JUDGMENT JUSTICE FRANCIS GARCHITORENA A STERN FIGURE WHO PRESIDED OVER THE CASE IN A SPECIAL ANTIGRAFT COURT SAID IN HIS JUDGMENT THAT THIS WAS NOT ONLY BEING OVERGENEROUS IT WAS GROSS ABANDONMENT OF ANY EFFORT TO GET DECENT TERMS FOR THE TRANSIT AUTHORITY FORMER TRANSPORT MINISTER JOSE DANS WAS CONVICTED OF THE SAME CHARGES AND RECEIVED THE SAME SENTENCE HE AND MRS MARCOS WERE ALSO BARRED FROM EVER HOLDING PUBLIC OFFICE MRS MARCOS RAN FOR PRESIDENT LAST YEAR FINISHING FIFTH IN A SEVENWAY RACE BUT SHE MANAGED TO WIN MORE THAN TWO MILLION VOTES MRS MARCOS AND MR DANS WERE ACQUITTED OF CHARGES THAT THEY VIOLATED LAWS AGAINST CONFLICTS OF INTEREST BY SIMULTANEOUSLY HOLDING OFFICE AT THE TWO ORGANIZATIONS MRS MARCOS WHO STOOD IMPASSIVELY AS THE JUDGMENT WAS READ IN A COURTROOM JAMMED WITH JOURNALISTS OFFERED NO EVIDENCE DURING THE TRIAL SHE HAS TOLD REPORTERS THAT THE MONEY GAINED FROM THE LEASES WAS USED TO FINANCE A HEART CENTER MRS MARCOS ALSO HAS CLAIMED THAT THE GOVERNMENT WAS EAGER TO PROSECUTE HER SO THAT IT COULD GAIN ACCESS TO 356 MILLION HELD BY HER IN SWISS BANKS A SWISS TRIBUNAL RULED IN 1990 THAT THE MONEY COULD BE TURNED OVER TO MANILA IF MRS MARCOS WAS CONVICTED IN A FAIR TRIAL IN A PHILIPPINE COURT MRS MARCOS HAS MAINTAINED THAT THE SWISS ACCOUNTS THE FIRST OF WHICH WAS SECRETLY SET UP IN 1968 REPRESENT HER LATE HUSBAND'S PERSONAL WEALTH FROM BUSINESS DEALS AND GOLD HE DISCOVERED BEFORE HE BECAME PRESIDENT IN 1965 JAMES LINN A US LAWYER WHO REPRESENTS MRS MARCOS IN HER US AND SWISS CASES SAID FRIDAY'S VERDICT WOULD HAVE LITTLE IMPACT ON THE SWISS ACCOUNTS BECAUSE IT DIDN'T INVOLVE ILLGOTTEN WEALTH THE GOVERNMENT'S MR GUNIGUNDO AGREED WITH THAT ASSESSMENT BUT ADDED THAT THIS MAY BE A HARBINGER OF GLAD TIDINGS FOR THE REST OF THE CASES MRS MARCOS STILL FACES ABOUT 70 OTHER CRIMINAL CASES IN THE PHILIPPINES A US COURT ACQUITTED HER OF FEDERAL RACKETEERING CHARGES IN 1990 THE FORMER FIRST LADY ISN'T LIKELY TO LAND BEHIND BARS ANY TIME SOON SHE REMAINS FREE ON BAIL AND HER LAWYERS SAID THEY PLAN AN APPEAL A PROCESS THAT COULD BE LONG 9309270148 930927 AEON HAS AMBITIOUS PLANS FOR TALBOTS INCLUDING IPO AND FURTHER EXPANSION BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE JAPANESE OWNERS OF TALBOTS INC HAVE AMBITIOUS PLANS FOR THE RETAILER AT A TIME WHEN THE FIELD IS CROWDED AND OVERALL SALES OF WOMEN'S APPAREL ARE LESS THAN ROBUST LAST WEEK THE US UNIT OF TOKYOBASED AEON GROUP WHICH ACQUIRED TALBOTS FROM GENERAL MILLS INC IN 1988 FILED FOR AN INITIAL PUBLIC OFFERING OF 11 MILLION SHARES EXPECTING TO RAISE AS MUCH AS 187 MILLION AEON KNOWN AT THE TIME OF THE ACQUISITION AS JUSCO GROUP PAID 325 MILLION FOR THE COMPANY THE HINGHAM MASSBASED TALBOTS WHICH SELLS APPAREL SHOES AND ACCESSORIES THROUGH STORES AND CATALOGS SAID IT EXPECTS AN OFFERING IN THE RANGE OF 15 TO 17 A SHARE A PRICE AT THE UPPER END OF THAT RANGE WOULD VALUE THE COMPANY AT ABOUT 564 MILLION BASED ON 331 MILLION SHARES OUTSTANDING AFTER THE OFFERING THE RETAILER WHICH CATERS TO AFFLUENT SUBURBAN AND PROFESSIONAL WOMEN PLANS TO USE 103 MILLION OF THE PROCEEDS TO PURCHASE CERTAIN TALBOTS TRADEMARKS FROM JUSCO EUROPE BV AN AEON UNIT AND 335 MILLION TO REPAY DEBT THE OFFERING WOULD LEAVE AEON'S US UNIT JUSCO USA INC HOLDING 67 OF TALBOTS AEON IS A JAPANESE CONGLOMERATE WITH REALESTATE AND RETAILING INTERESTS AT A TIME WHEN DISCOUNTING IS SPREADING THROUGH RETAILING AND IN AN INDUSTRY WHERE SEASONAL TRENDINESS IS A HALLMARK TALBOTS IS TAKING A DIFFERENT APPROACH BUILDING A FASHION IMAGE ON BASICS SUCH AS BLAZERS WHITE BLOUSES AND TURTLENECK SWEATERS TALBOTS DESCRIBED IN ITS FILING A STRATEGY TO REMAIN A FULLPRICE RETAILER OF PRIVATE LABEL APPAREL AND TO DEVELOP NEW NICHE RETAILING CONCEPTS SUCH AS TALBOTS PETITES AND TALBOTS KIDS THE COMPANY ALSO SAID IT PLANS TO CONTINUE EXPANDING BY AS MANY AS 50 STORES A YEAR SINCE ITS PURCHASE FROM GENERAL MILLS THE NUMBER OF TALBOTS STORES GREW TO 286 AT THE END OF 1992 FROM 137 AT THE END OF 1988 BY THE END OF AUGUST TALBOTS OPERATED 313 STORES IN 44 STATES AND CANADA INCLUDING SEVERAL WITH NEW FORMATS SUCH AS TALBOTS PETITES TALBOTS KIDS AND TALBOTS INTIMATES THE CATALOG BUSINESS HAS ALSO BEEN EXPANDED TO INCLUDE MAILINGS OF 25 SEPARATE CATALOGS WITH COMBINED DISTRIBUTION OF 60 MILLION COPIES AS IT ADDS STORES TALBOTS HAS SHOWN STRONG GROWTH IN SALES AND PROFIT FOR THE FISCAL YEAR ENDED JAN 30 SALES ROSE 22 TO 642 MILLION WHILE NET INCOME NEARLY TRIPLED TO 204 MILLION COMPARABLESTORE SALES GREW A HEALTHY 12 IN THE YEAR FOLLOWING TWO YEARS OF DECREASES CATALOG SALES WERE 147 MILLION OF TOTAL SALES AND INSTORE SALES ACCOUNTED FOR 495 MILLION BOTH CATEGORIES INCREASED STRONGLY FROM THE YEAREARLIER PERIOD IT'S AN ARDUOUS ENVIRONMENT THEY ARE IN SAID MARIA L MEDARIS AN ASSOCIATE ANALYST WITH ALEX BROWN & SONS WOMEN'S BETTER APPAREL IS A TOUGH MARKET MS MEDARIS NOTED THAT OVERCAPACITY TOO MUCH RETAIL SQUARE FOOTAGE IS AFFECTING RETAILING OVERALL AND IT'S ALSO AN ISSUE IMPACTING WOMEN'S APPAREL THE EXPANSION OF ANNTAYLOR STORES CORP AND UPGRADES BY LIMITED INC HAVE ONLY ESCALATED COMPETITION THERE IS A FIERCE BATTLE FOR THE UPSCALE WOMAN'S SHOPPING DOLLAR SAID ONE ANALYST THERE'S PLENTY OF SQUARE FOOTAGE ALREADY BUT THE OPERATORS WITH THE CLEAR IDENTITY WILL DO BETTER TALBOTS'S SALES PER SQUARE FOOT COMPARE FAVORABLY WITH OTHER RETAILERS' NUMBERS ACCORDING TO ITS FILING NET SALES PER SELLING SQUARE FOOT WERE 536 FOR ITS MOST RECENT FISCAL YEAR CLOSE TO A 10 INCREASE FROM THE YEAREARLIER PERIOD THE INCREASE IS DUE IN PART TO THE FACT THAT TALBOTS HAS OPENED SEVERAL STORES WITH LOWER SQUARE FOOTAGE THOUGH THE CHAIN ALSO MAINTAINS SEVERAL LARGE STORES IN IN NEW YORK BOSTON AND CHICAGO TALBOTS HAS ALSO WORKED ON THE EFFICIENCY OF ITS CATALOG BUSINESS IT TRIMMED THE NUMBER OF NAMES ON ITS CATALOG MAILING LIST TO 60 MILLION IN 1992 FROM 80 MILLION IN 1989 THE NEW LIST REDUCED MAILING AND PRODUCTION COSTS HOWEVER OVERALL CATALOG SALES INCREASED 10 TO 147 MILLION IN ITS MOST RECENT FISCAL YEAR AND PERCATALOG NET SALES HAVE CLIMBED SINCE 1990 REACHING 242 PER CATALOG LAST YEAR 9309270147 930927 LEISURE & ARTS TELEVISION NETWORKS FALL BACK ON SAME OLD STUFF BY ROBERT GOLDBERG FOR ME THE NEW TV SEASON BEGAN THE FIRST TIME THE CAMERA CIRCLED AROUND THAT DININGROOM TABLE AND CAME TO REST ON ROSEANNE ARNOLD THERE SHE WAS WITH A BRANDNEW FACE HAVING MISSED THE GOSSIP COLUMNS RECENTLY I'M NOT SURE IF IT WAS THE RESULT OF ACUPUNCTURE PLASTIC SURGERY OR A REALLY EXTREME MAKEUP SESSION BUT THE NEWS IS SHE NOW LOOKS SUBSTANTIALLY DIFFERENT A LITTLE PRETTIER AND VAGUELY EXOTIC INDIAN PERHAPS IT WAS A TWILIGHT ZONE KIND OF EXPERIENCE TO SEE THIS NEW HEAD ATTACHED TO THE SAME OLD BODY AND I THOUGHT THERE MIGHT BE SOMETHING SYMBOLIC TO IT A BRANDNEW LOOK REPRESENTING THE START OF A BRANDNEW TELEVISION SEASON AND THEN I FIGURED NOPE IT'S JUST ROSEANNE ARNOLD'S ROUND LITTLE FACE IT'S NOT A SYMBOL FOR ANYTHING BUT IN FACT THIS IS A YEAR OF COSMETIC CHANGES TO THE SAME OLD FORMULAS A YEAR OF SMALLSCALE TINKERING WITH SMALLSCALE RESULTS IN SOME CASES THOSE RESULTS ARE POSITIVE AS IN LOVE AND WAR CBS MONDAYS 930 PM EDT RESCUED WITH THE ARRIVAL OF ANNIE POTTS AS A TEMPERAMENTAL CHEF WITH IRONIC ARCHED EYEBROWS AND A FIERY DEMEANOR YOU'VE GOT A PIECE OF RAW MEAT IN YOUR HAIR SHE'S TOLD SOMEHOW IT LOOKS RIGHT MURPHY BROWN CBS MONDAYS 9 PM ALSO MAY HAVE TAKEN A LEAP FORWARD WITH THE ADDITION OF SCOTT BAKULA AS A NEW CORRESPONDENT SOMEONE FOR MURPHY TO SPAR WITH AND ONE HOPES TO HELP HER HONE HER EDGE MOSTLY THIS YEAR THE NETWORKS ARE IN THE FAMILY WAY ONCE AGAIN FAMILIES BIG AND SMALL NUCLEAR AND EXPLODED A REGULAR AVALANCHE OF KIDS AND MOMS AND DADS THEA ABC WEDNESDAYS 8 PM IS A SINGLE BLACK MOM WITH FOUR KIDS GRACE IN GRACE UNDER FIRE ABC WEDNESDAYS 930 PM IS A SINGLE WHITE MOM WITH THREE KIDS JOHN IN THE SECOND HALF NBC TUESDAYS 930 PM IS A DIVORCED DAD WITH TWO KIDS JOE IN JOE'S LIFE ABC WEDNESDAYS 830 PM IS A MARRIED DAD WITH TWO KIDS SINBAD FOX THURSDAYS 830 PM IS A SURROGATE DAD WITH TWO FOSTER KIDS AND THE MOMMIES NBC SATURDAYS 8 PM ARE TWO MOTHERS WITH FOUR KIDS BETWEEN THEM AND ONE MORE ON THE WAY AND THAT'S NOT COUNTING DADDY DEAREST FAMILY ALBUM AND A HALFDOZEN OTHERS THE SUBTHEME OF THE YEAR IS FAMILIES SCRAPING BY IN RECESSIONARY TIMES IN A FIT OF ROSEANNEINDUCED BLUE COLLARITIS THE NETS HAVE EVIDENTLY DECIDED THAT POVERTY IS SEXY JOE IS OUT OF WORK THEA IS WORKING DOUBLE SHIFTS AND GRACE HAS A TEMP JOB SHE HOPES WILL TURN INTO SOMETHING MORE PERMANENT AFTER EIGHT YEARS AND THREE CHILDREN I DECIDED TO GO IT ALONE AND BELIEVE ME IT WAS THE TOUGHEST DECISION I'VE EVER MADE BUT I FIGURED I HAD TWO CHOICES I COULD SPEND THE REST OF MY LIFE WAKING UP NEXT TO A KNUCKLEDRAGGING COUSINLOVING BEERSUCKING REDNECK OR I COULD WORK LIKE A DOG FOR LOUSY MONEY WHILE I RAISED THREE KIDS ALL BY MYSELF A REDEEMING GRACE IS THAT THE HUMOR THIS YEAR IS GENERALLY SHARPER SNAPPIER WHEN THE KIDS OF A DIVORCEE ASK THEIR MOTHER WHY THEY'RE LIVING WITH HER NOT THEIR DAD SHE REPLIES CAUSE HE WON THE COIN TOSS IF THE JOKES ARE BLACKER WITH A LITTLE MORE BITE THAT'S PROBABLY BECAUSE SO MANY OF THESE SHOWS ARE BUILT AROUND STANDUP COMICS JOHN MENDOZA BRETT BUTLER SINBAD RICHARD LEWIS DON RICKLES MARILYN KENTZ AND CARYL KRISTENSEN BRING AN APPEALING EDGE TO THE MOMMIES AND MY PERSONAL FAVORITE IS THEA THE COMIC NOT THE SHOW WITH HER WARM SASSY NONONSENSE ATTITUDE NOW IT WAS TWO YEARS AGO THAT I MAPPED OUT A FORMULA FOR HITS IN THIS COLUMN WHILE IT'S FLATTERING TO SEE HOW PRECISELY THE NETWORKS ARE FOLLOWING MY BLUEPRINT AND I HOPE IT WORKS FOR THEM AN OCCASIONAL DEVIATION FROM PURE GOLDBERGISM WOULDN'T BE A BAD THING EITHER NEXT YEAR'S HOT THEME OLYMPIC SHOTPUTTERS YOU HEARD IT HERE FIRST IN THE CURRENT ASSEMBLY LINE THE ADVANCES ARE SMALL ONES JUST NEW COLORS ON THE TRIM DAVE'S WORLD CBS MONDAYS 830 PM OFFERS YET ANOTHER FAMILY BUT AT LEAST THIS ONE IS INTRIGUINGLY OFFBEAT DRAWN FROM THE COLUMNS AND LIFE OF MIAMI PUNDIT DAVE BARRY HARRY ANDERSON PLAYS A WRITERDAD WITH A REALLY COOL LES PAUL GUITAR WHO'S MORE OF A KID THAN THE KIDS HE PARENTS UNLESS HE'S ORDERING INTO A CLOWN'S HEAD HE'S NOT HAPPY DAVE IS COMING TO TERMS WITH BEING AN ADULT IN AN AGE WHEN THE PRESIDENT KNOWS THE WORDS TO LOUIE LOUIE MOSTLY HE JUST LIKES TO SIT AROUND ALL DAY AND WATCH TV SOUNDS FAMILIAR BY THE WAY IF ANYONE'S INTERESTED IN PAYING HUNDREDS OF THOUSANDS OF DOLLARS FOR THE RIGHTS TO MY COLUMNS I'M OPEN TO THE IDEA AND I PLAY GUITAR A LOT BETTER WHEN IT COMES TO DRAMAS THEY'RE MOSTLY REHASHES AS WELL SEAQUEST DSV NBC SUNDAYS 8 PM IS TRYING TO BE THE UNDERWATER STAR TREK BUT RIGHT NOW FOR ALL THE HIGHTECH GLITZ IT'S A LEAKY VESSEL MOON OVER MIAMI ABC WEDNESDAYS 10 PM IS A DIM MOONLIGHTING HISANDHERS PRIVATE INVESTIGATORS STALKING SOUTH FLORIDA IN PASTELS AGAINST THIS BACKGROUND AGAINST THE GRAIN NBC FRIDAYS 8 PM PREMIERING THIS WEEK LOOKS POSITIVELY DISTINCTIVE BUT ACTUALLY AS CREATED BY MIKE PAVONE AND DAVE ALAN JOHNSON IT'S ANOTHER HEARTWARMING SMALLTOWN DRAMA THE STORY OF A TEXAS HIGHSCHOOL FOOTBALL LEGEND WHO GIVES UP HIS JOB AS AN INSURANCE AGENT AND RETURNS TO COACH AT HIS ALMA MATER IN A TOWN THAT'S RABID ABOUT ITS FOOTBALL GRAIN IS A MILDLY ENGAGING LOOK AT THE WORLD OF FRIDAY NIGHT FEVER COMPLETE WITH GRIDIRON HOOPLA SLICEOFLIFE SENTIMENTALITY AND LOCKERROOM PHILOSOPHY BUT THE BIGGER PHILOSOPHICAL QUESTION IS HOW IS IT POSSIBLE THAT THE NETWORKS SPEND SO MUCH MONEY EACH YEAR AND THEY COME UP WITH THE SAME OLD STUFF ARE THEY REALLY SO SHORT OF IDEAS OR JUST TOO SCARED TO TRY ANYTHING DIFFERENT 9309270146 930927 DAIWA AMERICA GROUP IS SAID TO BE FOR SALE RIVALS SAY UNIT'S LEADER STONE HAS APPROACHED SOME POTENTIAL BUYERS BY ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK DAIWA SECURITIES AMERICA'S LUCRATIVE MORTGAGEBACKED SECURITIES UNIT IS SHOPPING FOR A NEW HOME ACCORDING TO INDIVIDUALS FAMILIAR WITH THE SITUATION A CONTRACT UNDER WHICH THE UNIQUELY INDEPENDENT 39PERSON UNIT OPERATES ENDS IN MARCH PEOPLE FAMILIAR WITH THE SITUATION SAY GROUP DIRECTOR ANDREW STONE HAS BEEN APPROACHING POTENTIAL BUYERS FOR THE FRANCHISE HE CREATED INDEPENDENTLY AND MADE INTO ONE OF THE MOST PROFITABLE TRADING SHOPS ON WALL STREET ANTHEM PARTNERS LP A MERGERS AND ACQUISITIONS BOUTIQUE HAD REPRESENTED MR STONE'S INTERESTS IN THE POSSIBLE SALE UNTIL THE PARTNERSHIP WAS DISSOLVED IN JULY MICHAEL DUVAL FORMER HEAD OF THE GROUP CONFIRMED MR DUVAL SAID ANTHEM HAD BEEN WORKING WITH THE MORTGAGE UNIT FOR MORE THAN A YEAR MR STONE EARLIER DENIED THAT THE UNIT WAS FOR SALE AND COULDN'T BE REACHED IMMEDIATELY FRIDAY TO RESPOND TO MR DUVAL'S COMMENTS DAIWA AMERICA SPOKESMAN STANLEY GINSBERG SAID WE'RE NOT IN A POSITION TO COMMENT ON THAT BUT SEVERAL PEOPLE OUTSIDE DAIWA AMERICA SAID MR STONE HAS BEEN SEEKING A BUYER FOR THE MORTGAGE GROUP FOR 250 MILLIONNEARLY THE AMOUNT THE DAIWA MORTGAGE TEAM EARNED IN PRETAX PREBONUS PROFITS DURING ITS 1993 FISCAL YEAR ENDED MARCH 31 ABOUT 80 MILLION IN PROFIT WAS DISTRIBUTED AMONG THE UNIT STAFF A TOP OFFICIAL AT ONE RIVAL FIRM SAYS MR STONE HAS BEEN SHOPPING FOR A BUYER FOR SEVERAL MONTHS AND HE KNOWS AT LEAST TWO INDIVIDUALS WHO HAVE BEEN APPROACHED WORD THAT AN OFFERING CIRCULAR EXISTS RECENTLY REACHED SOME MEMBERS OF DAIWA'S MORTGAGE GROUP WHO HAVE YET TO BE FORMALLY TOLD OF MR STONE'S APPARENT PLANS DAIWA AMERICA AGREED TO A CONTRACT WITH MR STONE IN SEPTEMBER 1990 GRANTING HIM FLEXIBILITY TO RUN THE GROUP AS HE DESIRED AND THE ABILITY TO TAKE CONSIDERABLE RISKS THE GROUP BEGAN TRADING APRIL 1 1991 ONLY MR STONE SIGNED THE CONTRACT MEANING HE CAN'T GUARANTEE ANY BUYER OR JOINT VENTURE PARTNER THAT A SIGNIFICANT NUMBER OF THE GROUP WOULD FOLLOW THE CONTRACT ADHERES TO A METICULOUSLY CRAFTED BUSINESS PLAN AND GRANTS THE GROUP AUTHORITY TO CARRY AS MUCH AS 3 BILLION IN BOND POSITIONS IT ALSO CALLS FOR HALF OF THE GROUP'S PROFITS TO BE RETURNED TO THE UNIT AFTER ITS FIRST FISCAL YEAR A RARE ARRANGEMENT SLIGHTLY LESS THAN 40 OF ITS PROFITS WERE RETURNED IN THE SECOND YEAR AND ABOUT 30 ARE EXPECTED TO BE RETURNED IN THE THIRD YEAR MR STONE'S SHARE OF THE BOUNTY THIS YEAR WAS PREVIOUSLY REPORTED TO HAVE BEEN ABOUT 15 MILLION OBSERVERS KNOWLEDGEABLE ABOUT THE FIRM SAY MR STONE WILL HAVE A DIFFICULT TIME STRIKING A SIMILAR AGREEMENT WITH ANY OTHER GROUP TO ACHIEVE SUCH ARRANGEMENTS AN OFFICIAL AT ONE RIVAL FIRM SAYS MR STONE WOULD HAVE TO FIND A BUYER WILLING TO PUT UP 75 MILLION TO 100 MILLION ENOUGH TO ENABLE THE FIRM TO HOLD 25 BILLION TO 3 BILLION IN POSITIONS FEW FIRMS OUTSIDE THE WALL STREET POWERHOUSES HAVE THE MONEY TO SUPPORT THAT KIND OF ENTERPRISE THESE OBSERVERS SAY AND WALL STREET FIRMS ARE UNLIKELY TO WANT A PARTNERSHIP WITH A HIGHLY PAID GROUP OF BANKERS THEY VIEW AS COMPETITORS THE PEOPLE THERE MADE A LOT OF MONEY IN A REALLY RARE SETTING ACCORDING TO THE RIVAL OFFICIAL ANDY'S TRYING TO RECREATE THAT SETTING AND IT'S NOT GOING TO HAPPEN DESPITE THE PROFIT MR STONE'S GROUP CLEARED PEOPLE FAMILIAR WITH DAIWA AMERICA SAY JAPANESE OWNERS WEREN'T COMPLETELY COMFORTABLE WITH THE COLORFUL AND SELFDESCRIBED QUIRKY GROUP OF AMERICANS WHO RAN THE MORTGAGE OPERATION MR STONE HIRED COLLEAGUES FROM HIS FORMER JOBS AT SALOMON BROTHERS INC AND PRUDENTIAL SECURITIES INC MANY OF WHOM WERE KNOWN FOR THEIR CREATIVE AND SOMETIMES OFFBEAT APPROACHES TO THE BUSINESS DAIWA AMERICA IS A UNIT OF A DAIWA SECURITIES CO OF JAPAN 9309270145 930927 BUSINESS BRIEF ORACLE CORP AGREES TO PAY FINE TO SETTLE SEC CHARGES OVER ACCOUNTING PRACTICES WASHINGTON ORACLE CORP AGREED TO SETTLE CHARGES BY THE SECURITIES AND EXCHANGE COMMISSION THAT THE SOFTWARE COMPANY INFLATED ITS REVENUES AND EARNINGS BY DOUBLE BILLING CUSTOMERS FAILING TO DEDUCT PRODUCT RETURNS AND USING OTHER ACCOUNTING IRREGULARITIES THE COMPANY BASED IN REDWOOD CITY CALIF AGREED TO PAY A 100000 FINE BUT DIDN'T ADMIT OR DENY THAT IT VIOLATED SEC RULES ORACLE EMPHASIZED THAT THE SEC MADE NO ALLEGATION OF FRAUD OR INTENTIONAL WRONGDOING BY THE COMPANY EARLIER THIS YEAR ORACLE PAID 24 MILLION TO SETTLE CIVIL LAWSUITS FILED BY SHAREHOLDERS WHO HAD SIMILAR COMPLAINTS ABOUT THE ACCOUNTING PRACTICES THAT SETTLEMENT WHICH IS SUBJECT TO COURT APPROVAL RESULTED IN A 12CENTASHARE CHARGE TAKEN IN THE FISCAL THIRD QUARTER ENDED FEB 28 IN ITS COMPLAINT FILED IN FEDERAL COURT IN SAN FRANCISCO THE SEC ALLEGED THAT ORACLE OVERSTATED ITS QUARTERLY EARNINGS IN 1990 AND 1991 BY AS MUCH AS 159 OF ACTUAL NET INCOME AND 150 OF EARNINGS PER SHARE THE COMPANY ALREADY HAS RESTATED ITS EARNINGS FOR THE PERIODS IN QUESTION WE'RE TALKING ABOUT ADJUSTMENTS IN THE MILLIONS OF DOLLARS SAID ROBERT SINGLETARY CHIEF OF ENFORCEMENT FOR THE SEC'S BRANCH OFFICE IN SAN FRANCISCO ORACLE HAS SAID THE INACCURATE FINANCIAL REPORTS NOTED BY THE SEC OCCURRED FOLLOWING A PERIOD OF EXPLOSIVE GROWTH IN SALES AND REVENUES WHICH EXCEEDED THE ABILITY OF THE COMPANY'S INTERNAL CONTROL SYSTEMS TO DETECT ERRORS A COMPANY SPOKESMAN SAID FRIDAY THAT ALL SUCH PROBLEMS NOW ARE OLD NEWS WE'RE BACK ON TRACK JEFFREY O HENLEY ORACLE'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ADDED IN A STATEMENT GIVEN THIS SETTLEMENT AND THE CONTROLS WE HAVE PUT IN PLACE OVER THE PAST SEVERAL YEARS WE ARE SATISFIED THAT THESE EVENTS ARE BEHIND US 9309270144 930927 MALAYSIA TYCOON TO CONTROL SHARES OF PANGLOBAL BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA DATUK JAMES WONG KIM MIN ONE OF MALAYSIA'S WEALTHIEST TIMBER TYCOONS PLANS TO INJECT LOGGING AND COALMINING ASSETS INTO A PUBLICLY LISTED COMPANY PANGLOBAL EQUITIES BHD THE TRANSACTION VALUED AT A TOTAL OF M365 MILLION US143 MILLION WOULD GIVE DATUK WONG A CHANCE TO REAP THE MARKET VALUE OF HIS TIMBER INTERESTS AT A TIME WHEN TIMBER PRICES ARE RIDING HIGH IT ALSO WOULD MARK THE EMERGENCE OF DATUK WONG A POLITICALLY INFLUENTIAL BUSINESSMAN AS THE CONTROLLING SHAREHOLDER IN A PUBLICLY LISTED COMPANY LIKE MOST OTHER EAST MALAYSIAN TIMBER BARONS DATUK WONG HAS KEPT TIGHT CONTROL OVER HIS LOGGING INTERESTS RESERVING THEM FOR HIS FAMILY AND A SMALL CIRCLE OF ASSOCIATES UNTIL NOW PANGLOBAL EQUITIES ANNOUNCED FRIDAY THAT IT HAS AGREED TO ACQUIRE DATUK WONG'S 55 STAKE IN LIMBANG TRADING LIMBANG SDN BHD WHICH HOLDS A 183175HECTARE LOGGING CONCESSION IN MALAYSIA'S SARAWAK STATE IN EXCHANGE FOR NEW PANGLOBAL SHARES VALUED AT M165 MILLION PANGLOBAL EQUITIES ALSO AGREED TO ACQUIRE ALL OF THE SHARES IN HIS GLOBAL MINERALS SARAWAK SDN BHD WHICH OWNS A 260SQUAREKILOMETER COAL FIELD FOR NEW PANGLOBAL SHARES VALUED AT M200 MILLION IN ADDITION PANGLOBAL SAID IT PLANS TO ACQUIRE SEVERAL PARCELS OF PROPERTY AND A SEVENSTORY BUILDING IN JOHOR STATE FROM ORCHID HOTELS SDN BHD FOR SHARES VALUED AT M45 MILLION AT THE SAME TIME PANGLOBAL INTENDS TO RAISE ABOUT M86 MILLION THROUGH A ONEFORONE RIGHTS OFFERING OF 41046137 SHARES AT M210 EACH DATUK WONG AND HIS ASSOCIATES WOULD END UP WITH AT LEAST 51 OF PANGLOBAL THEY ARE SEEKING A WAIVER FROM STOCK EXCHANGE RULES THAT WOULD REQUIRE THEM TO MAKE A GENERAL OFFER FOR THE REMAINING SHARES 9309270143 930927 POLITICS & POLICY CLINTON RETHINKS US GLOBAL PEACEKEEPING ROLE DRAWS NEW CRITERIA FOR JOINING UNLED MISSIONS BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BILL CLINTON CAME TO THE WHITE HOUSE SOMETHING OF A WIDEEYED BELIEVER IN THE UNITED NATIONS' ABILITY TO MAKE THE WORLD A SAFER PLACE THE PRESIDENT WHO ADDRESSES THE UN GENERAL ASSEMBLY TODAY IS OLDER AND WARIER AFTER EIGHT MONTHS OF STRUGGLING WITH SOMALIA AND BOSNIA THE PRESIDENT AND HIS TOP ADVISERS ARE FAR LESS ENTHUSIASTIC ABOUT NOT ONLY THE TASK OF PEACEMAKING IN A DANGEROUS WORLD BUT THE UN'S ABILITY TO RUN IT FACING A REBELLION OVER THE ISSUE ON CAPITOL HILL THE ADMINISTRATION IS NOW REDRAFTING A PLAN THAT WOULD HAVE PLACED SOME US COMBAT TROOPS UNDER UN COMMAND THE NEW RULE OF THUMB SAY OFFICIALS IS TO DO SO ONLY WHEN THE MISSION IS SMALL AND NO ONE IS LIKELY TO GET HURT THE REVISED PLAN WILL ALSO LAY OUT A SET OF CRITERIA FOR US INVOLVEMENT IN PEACEKEEPING SO RIGOROUS INCLUDING THE DEGREE OF NATIONAL INTEREST COST A GUARANTEED EXIT POINT AND THE LIKELIHOOD THAT THE ACTION WOULD PRODUCE LASTING BENEFITS THAT THE CURRENT UN RELIEF MISSION IN SOMALIA WHERE THREE US SOLDIERS WERE KILLED WHEN THEIR HELICOPTER WAS SHOT DOWN LAST WEEKEND MIGHT NOT MEET THE TEST OFFICIALS ARE QUICK TO POINT OUT THAT THE US IS AS READY AS EVER TO UNILATERALLY DEFEND FUNDAMENTAL US INTERESTS AND THEY SAY THE PRESIDENT REMAINS FIRMLY CONVINCED OF THE BENEFITS OF MULTILATERAL ACTION ESPECIALLY IN CASES WHERE US INTERESTS ARE NOT SO DIRECTLY ON THE LINE IN HIS SPEECH TODAY MR CLINTON IS EXPECTED TO CALL FOR MAJOR CHANGES IN THE WAY THE UN DECIDES TO COMMIT TROOPS TO PEACEKEEPING MISSIONS AND IN THE WAY SUCH MILITARY OPERATIONS ARE RUN AS WELL AS OFFERING CONCRETE HELP HE IS ALSO EXPECTED TO SAY THAT TOUGHER QUESTIONS SHOULD BE ASKED BEFORE A PEACEKEEPING MISSION IS UNDERTAKEN RATHER THAN AFTER IT IS UNDER WAY A SENIOR US OFFICIAL SAID LAST NIGHT DESPITE MOUNTING DEMANDS ON CAPITOL HILL FOR AN IMMEDIATE WITHDRAWAL FROM SOMALIA OFFICIALS SAY THE US WILL STAY THE COURSE AND IF A PEACE AGREEMENT IS SIGNED IN BOSNIA PERHAPS AS SOON AS THIS WEEK MR CLINTON HAS SAID HE WILL ASK AN EXTREMELY ANXIOUS CONGRESS TO SEND AS MANY AS 25000 AMERICAN TROOPS TO JOIN A MULTINATIONAL PEACEKEEPING FORCE THEY'RE CERTAINLY BACKING OFF ON THEIR RHETORIC THE BROOKINGS INSTITUTION'S JOHN STEINBRUNER SAYS OF THE ADMINISTRATION'S NEW TENOR BUT HE SAYS HE WON'T BE CONVINCED OF HOW WELL OFFICIALS HAVE THOUGHT THINGS THROUGH UNTIL THEY FULLY ENGAGE IN A DEBATE OVER BOSNIA INCLUDING QUESTIONS OF COMMAND AND CONTROL RULES OF ENGAGEMENT AND HOW LONG A COMMITMENT WILL LAST AND NO ONE IS SURE IF MR CLINTON REALLY WANTS TO ENGAGE THAT DEBATE OR THE CERTAIN POLITICAL FIGHT THAT COMES WITH IT THAT GUESSING GAME TOOK ON PARTICULAR DRAMA LAST WEEK AS MR CLINTON'S TOP FOREIGN POLICY TEAM FANNED OUT TO PRESENT A NEW FOREIGN POLICY VISION COMMITTED TO ENLARGING DEMOCRACY BUT ALSO TO CHOOSING AMERICA'S BATTLES TO BE SUCCESSFUL A STRATEGY OF ENLARGEMENT MUST PROVIDE DISTINCTIONS AND SET PRIORITIES SAID NATIONAL SECURITY ADVISER ANTHONY LAKE WHILE THERE WILL BE INCREASING CALLS ON US TO HELP STEM BLOODSHED AND SUFFERING IN ETHNIC CONFLICTS AND WHILE WE WILL ALWAYS BE WILLING TO BRING OUR DIPLOMACY TO BEAR HE SAID THERE WILL BE RELATIVELY FEW SUCH CONFLICTS THAT JUSTIFY OUR MILITARY INTERVENTION SUCH SOBER TALK IS A LONG WAY FROM MR CLINTON'S CAMPAIGN RHETORIC WHEN HE CALLED FOR A SMALL UNLED RAPID DEPLOYMENT FORCE TO COMBAT TERRORISM ETHNIC WARFARE AND OTHER WORLD PROBLEMS FOR MR CLINTON WHO PROMISED A NEW DEMOCRAT FOREIGN POLICY COMMITTED TO BOTH PROMOTING US VALUES AND A WILLINGNESS TO USE FORCE MULTILATERAL ACTION WAS BOTH IDEOLOGICALLY SOUND AND GOOD ECONOMICS ACTING WITH THE UN THE US COULD BE ASSERTIVE WITHOUT BEING ACCUSED OF IMPERIAL AMBITIONS WHILE SHARING BOTH COSTS AND RISKS WHAT MR CLINTON NEVER EXPLAINED IS WHAT HE WOULD DO IF AS IN BOSNIA THE ALLIES WEREN'T WILLING TO ACT WITH THE US OR WHAT AS SOME FEAR COULD HAPPEN IN BOTH SOMALIA AND BOSNIA HE WOULD DO IF EVEN SHARED RISKS BECAME TOO HIGH SINCE TAKING OFFICE OFFICIALS SAY MR CLINTON HAS FOUND THAT MULTILATERAL ACTION IS NEITHER NEAT NOR EASYNOR POLITICALLY POPULAR ADMINISTRATION OFFICIALS WERE CLEARLY CAUGHT OFF GUARD BY THE FIERCE POLITICAL BACKLASH ON CAPITOL HILL PROTESTING THE DEEPENING US INVOLVEMENT IN SOMALIA WEST VIRGINIA DEMOCRATIC SEN ROBERT BYRD HAS ACCUSED MR CLINTON OF NOTHING LESS THAN CEDING AMERICAN LEADERSHIP TO THE UN I DO NOT SEE IN THE FRONT OF THIS CHAMBER THE UN FLAG HE TOLD SENATORS I HAVE NEVER SALUTED THE UN FLAG I SALUTED OLD GLORY THE AMERICAN FLAG SENATE REPUBLICAN LEADER ROBERT DOLE OF KANSAS WHO WANTS THE US TO DO LESS IN SOMALIA BUT MORE IN BOSNIA ACCUSES MR CLINTON OF SUBORDINATING US FOREIGN POLICY TO MULTILATERAL ORGANIZATIONS IN PARTICULAR THE UNITED NATIONS ADMINISTRATION OFFICIALS MEANWHILE ADMIT THEY OVERESTIMATED THE UN'S MILITARY READINESS TO ASSUME THE COMMAND OF THE SOMALIA OPERATION LAST MAY AND IMMEDIATELY PAID THE PRICE FOR IT IN JUNE WHEN US COMBAT TROOPS HAD TO BE BROUGHT BACK TO FEND OFF A RENEGADE WARLORD OFFICIALS ALSO REGRET THAT THAT DECISION TO JUMP BACK INTO SOMALIA WASN'T FULLY DEBATED EITHER INSIDE THE ADMINISTRATION OR PUBLICLY AS A RESULT OF THAT EXPERIENCE SAY OFFICIALS PRESIDENT CLINTON IS INSISTING THAT ANY PEACKEEPING MISSION IN BOSNIA BE PLACED UNDER NATO NOT UN CONTROL AND BE FULLY DEBATED BY THE PUBLIC AND CONGRESS THE LESSON DRAWN FROM BOSNIA MAY BE EVEN MORE SOBERING SINCE IT ALSO POINTS OUT THE WEAKNESS OF MR CLINTON'S EARLY STYLE OF INTERNATIONAL LEADERSHIP ECHOING AN ARGUMENT NOW HEARD REGULARLY INSIDE THE ADMINISTRATION REPUBLICAN SEN RICHARD LUGAR OF INDIANA SAYS THAT MR CLINTON TOOK IT FOR GRANTED THAT THE ALLIES WOULD FOLLOW HIM WHEN HE PROPOSED A TOUGHER LINE IN BOSNIA THAT MISCALCULATION AND THE SUBSEQUENT REBUFF HE SAYS REINFORCED AMERICAN ANXIETIES ABOUT BOTH MULTILATERALISM AND US LEADERSHIP TO CALM THOSE ANXIETIES THE ADMINISTRATION IS CONSIDERING SEVERAL STEPS THAT MIGHT MAKE US ACTION IN BOSNIA MORE POLITICALLY PALATABLE INCLUDING GIVING CONGRESS THE RIGHT TO REVIEW THE MISSION PERIODICALLY IDENTIFYING A CLEAR EXIT STRATEGY BEFORE TROOPS ARE COMMITTED AND PERSUADING OTHER COUNTRIES TO HELP PAY THE COST ILLINOIS DEMOCRATIC SEN PAUL SIMON MEANWHILE IS HOPEFUL THAT STRONGER DIRECTION FROM THE WHITE HOUSE AS WELL AS A NEW WILLINGNESS TO DEBATE FOREIGN AFFAIRS WILL GO A LONG WAY TO CALMING THOSE ANXIETIES WHEN YOU SEE UNCERTAINTY IN TERMS OF LEADERSHIP THEN CONGRESS MOVES INTO A VACUUM HE SAYS I DON'T THINK IT WILL BE PERMANENT 9309270141 930927 PEOPLE PATTERNS BY ALAN L OTTEN TODAY'S TWENTYSOMETHINGS HAVE LOWERED THEIR ECONOMIC EXPECTATIONS AND TURNED MORE TOWARD FAMILY AND FRIENDS SINCE THE MID1970S THE ROPER ORGANIZATION HAS BEEN MEASURING THE VALUES AND HOPES OF YOUNG ADULTS AGED 18 TO 29 IT FINDS THE CURRENT CROP CONSIDERABLY MORE HUMBLE THAN SIMILARLY AGED BABY BOOMERS SURVEYED IN 1978 IN CONTRAST TO THE ECONOMIC CONDITIONS GOING ON WHEN THE BOOMERS REACHED ADULTHOOD ROPER NOTES MOST OF TODAY'S TWENTYSOMETHINGS ARRIVED AT MATURITY WITH A SLUGGISH JOB MARKET STAGNANT WAGES AND HIGH COSTS FOR COLLEGE AND HOUSING FAR FEWER TODAY THINK THEY HAVE AN ODDSON CHANCE OF ACHIEVING WHAT THEY CONSIDER THE GOOD LIFE ONLY 21 OF THE CURRENT GROUP RATE THEIR CHANCES VERY GOOD BY FAR THE LOWEST PERCENTAGE EVER THE 1978 SURVEY FOUND 41 OF THE BOOMERS THINKING THEY HAD A VERY GOOD CHANCE OF ACHIEVING THE GOOD LIFE AND ROPER DESCRIBES THIS 20 PERCENTAGE POINT DROP AS A HUGE SHIFT IN 15 YEARS MOREOVER 17 NOW THINK THEIR CHANCES NOT VERY GOOD OR NOT GOOD AT ALL ROUGHLY DOUBLE THE LEVEL OF PESSIMISTIC ANSWERS IN ANY EARLIER SURVEY IN 1978 THREEFOURTHS OF THE 18 TO 29 YEAR OLDS CONSIDERED AN INTERESTING JOB A KEY PART OF THE GOOD LIFE WHILE ONLY 58 THOUGHT THE GOOD LIFE HAD TO INCLUDE A JOB THAT PAYS A LOT MORE THAN AVERAGE TODAY'S YOUNG ADULTS APPEAR MORE PRACTICAL A HIGHPAYING JOB IS NOW TIED WITH AN INTERESTING ONE AT 69 FAR FEWER THAN IN 1978 HOWEVER BELIEVE THEY NOW HAVE AN INTERESTING JOB OR ONE THAT PAYS MUCH MORE THAN AVERAGE ONLY TWO OUT OF FIVE ARE SATISFIED WITH THE AMOUNT OF MONEY THEY HAVE TO LIVE ON AND UNCERTAINTY IS PROFOUND EVEN AMONG MORE AFFLUENT TWENTYSOMETHINGS FACED WITH THIS UNSETTLING WORK SCENE MEMBERS OF THIS AGE GROUP ARE PUTTING MORE EMPHASIS ON FAMILY FRIENDS AND A TRADITIONAL LIFESTYLE ROPER ASSERTS IN THE LATE 1970S ONE OUT OF FIVE IN THIS AGE GROUP EXPECTED TO BE CHILDLESS NOW LESS THAN ONE OF 10 DOES ASKED WHAT THEY WOULD DO WITH AN EXTRA FOUR HOURS A DAY THE CURRENT GROUP FAR MORE THAN THEIR EARLIER COUNTERPARTS SAY THEY WOULD SPEND IT WITH FAMILY AND FRIENDS OVERALL ROPER SAYS THE REAL DIFFERENCE BETWEEN THE 18 TO 29 YEAR OLDS OF THE 1970S AND THOSE OF TODAY STEMS FROM GROWING UP WITH CONFIDENCE VS UNCERTAINTY DIVORCE RATES RISE WHEN THERE IS A SERIOUSLY ILL YOUNG CHILD UNIVERSITY OF UTAH DEMOGRAPHER KEN SMITH AND ECONOMIST JUTTA JOESCH RECENTLY STUDIED MORE THAN 9300 HOUSEHOLDS WITH AT LEAST ONE CHILD UNDER AGE 18 PART OF A LARGE 1988 NATIONAL SURVEY OF CHILDREN'S HEALTH THE SURVEY ALSO GATHERED DETAILED INFORMATION ABOUT THE MOTHER'S MARITAL HISTORY AND SOCIOECONOMIC BACKGROUND ALMOST ONE OUT OF NINE OF THE MOTHERS HAD BEEN DIVORCED THE RESULTS INDICATED THAT COUPLES WHOSE CHILDREN WERE BLIND OR HAD CEREBRAL PALSY OR CONGENITAL HEART DISEASE BEFORE THEY WERE FIVE WERE THREE TO FOUR TIMES MORE LIKELY TO SPLIT UP THAN THOSE WITH SIMILAR EDUCATIONAL AND ECONOMIC BACKGROUNDS BUT WITH HEALTHY CHILDREN COUPLES WHOSE PRESCHOOL CHILDREN HAD DELAYED DEVELOPMENT OR SHOWED SUBSTANTIAL LEARNING DISABILITIES OR EMOTIONAL PROBLEMS HAD DIVORCE RATES 35 TO 80 HIGHER THAN THOSE WHOSE CHILDREN DIDN'T HAVE THOSE PROBLEMS THE RESEARCHERS STRESS THAT MOST COUPLES DO OF COURSE STAY TOGETHER DESPITE OR EVEN BECAUSE OF A CHILD'S SERIOUS HEALTH PROBLEMS NONETHELESS THEY SAY THE MORE SEVERE AND LONGLASTING A CHILD'S DISEASE THE MORE LIKELY IT IS TO HAVE A NEGATIVE EFFECT ON THE MARRIAGE THEY ADD THAT THIS EFFECT APPEARS PARTICULARLY SIGNIFICANT IF THE MARRIAGE IS RELATIVELY NEW WHEN THE CHILD'S PROBLEMS BECOME EVIDENT DRUGS AND VIOLENCE RATHER THAN LOW ACADEMIC STANDARDS OR POOR TEACHING ARE THE CHIEF CONCERNS OF PARENTS OF ELEMENTARY SCHOOL STUDENTS THE GALLUP ORGANIZATION IN A SURVEY FOR PARENTING MAGAZINE ASKED PARENTS OF CHILDREN 12 YEARS OLD AND YOUNGER JUST WHICH PROBLEMS FACING ELEMENTARY SCHOOLS CAUSED THEM GREAT CONCERN OVER THREEFOURTHS PICKED DRUGS AND ALMOST SEVEN OUT OF 10 CHOSE VIOLENCE WHILE ONLY THREE OUT OF FIVE CHECKED OFF LOW ACADEMIC STANDARDS OR POOR TEACHING BOTH FATHERS AND MOTHERS WERE EQUALLY ANXIOUS ABOUT DRUG PROBLEMS BUT ON OTHER ISSUES MOTHERS WERE GENERALLY MORE WORRIED ASKED WHAT MIGHT HELP IMPROVE ELEMENTARY SCHOOL EDUCATION ALMOST NINE OUT OF 10 CITED GREATER PARENTAL INVOLVEMENT BOTH IN THEIR CHILDREN'S HOMEWORK AND AT SCHOOL ONLY TWO OUT OF THREE CHOSE HIGHER STANDARDS FOR TEACHERS OR SMALLER CLASS SIZES JUST OVER HALF THOUGHT GREATER GOVERNMENT FUNDING WAS PART OF THE ANSWER JUST UNDER HALF ACTUALLY DID VOLUNTEER WORK AT LOCAL SCHOOLS THE RESPONDENTS SAID THEY BELIEVE THAT PARENTAL INVOLVEMENT AND ENCOURAGEMENT WERE THE MAJOR REASONS WHY SOME STUDENTS CONSISTENTLY GET BETTER GRADES SURPRISINGLY COMPARATIVELY SMALL PERCENTAGES ATTRIBUTED IT TO SOME STUDENTS BEING BRIGHTER OR WORKING HARDER EIGHTYFIVE PERCENT SAID THEY WOULD BE WILLING TO PAY ADDITIONAL TAXES TO FINANCE ELEMENTARY SCHOOLS ODDS AND ENDS MINORITIES ACCOUNTED FOR MORE THAN THREEFOURTHS OF THE POPULATION IN 46 US COUNTIES IN 1990 AND MORE THAN HALF OF THE POPULATION IN ANOTHER 140 COUNTIES CENSUS BUREAU TABULATIONS SHOW STARR COUNTY TEXAS LED WITH A 98 MINORITY POPULATION LOW BIRTHWEIGHT CHILDREN ARE MORE LIKELY TO PERFORM POORLY IN SCHOOL AND MORE APT TO HAVE HEALTH PROBLEMS THAN NORMAL BIRTHWEIGHT CHILDREN ACCORDING TO RESEARCH BY ECONOMISTS HOPE CORMAN AND STEPHEN CHAIKIND ADD TO REINVENTING GOVERNMENT BEGINNING IN JANUARY CENSUS BUREAU FIELD INTERVIEWERS WILL COLLECT ANSWERS FOR THE CURRENT POPULATION SURVEY DIRECTLY ON LAPTOP COMPUTERS RATHER THAN WITH PAPER AND PENCIL 9309270140 930909 REVIEW & OUTLOOK EDITORIAL HALLOWEEN FOR NAFTA THE AIR AROUND NAFTA IS FILLING UP WITH DEMAGOGUES HALFFORMED FACTS ECONOMIC SUPERSTITIONS AND STRANGE POLITICAL MATINGS IT'S ALL VERY WEIRD MOST PEOPLE LIKE TO THINK OF THE UNITED STATES AS ON BALANCE A SERIOUS COUNTRY YES THE SYSTEM IS OFTEN MORE THAN A LITTLE MESSY BUT EVEN WHEN THE DISAGREEMENTS ARE SHARP THE TERMS OF THE DEBATE ARE ESSENTIALLY SERIOUS THE NORTH AMERICAN FREE TRADE AGREEMENT HOWEVER SEEMS TO HAVE LENT ITSELF TO AN EXTRAORDINARY AMOUNT OF SPOOKY POPULISM PRODUCING THE BIGGEST HALLOWEEN PARTY THIS COUNTRY HAS SEEN IN A LONG TIME HOW ELSE EXPLAIN THE SUDDEN APPEARANCE IN OUR MIDST OF A CREATURE WITH THE HEAD OF A BUCHANAN CONJOINED TO THE TAIL OF A NADER ALSO SIGHTED FLYING THROUGH THE AMERICAN SKIES RECENTLY HAS BEEN A CREATURE WITH THE HEAD OF A PEROTIAN BILLIONAIRE AND THE FLAPPING WINGS OF A HUNDRED UNIONS QUITE AMAZING THE WAY IT STAYS ALOFT HERE'S A REALLY STRANGE ANTINAFTA HYBRID IT SOUNDS LIKE JESSE JACKSON NAFTA IS A SHAFTA BUT SCOOTS DEFTLY ACROSS THE LANDSCAPE LIKE THE PROTECTIONIST SOUTHERN TEXTILE KING ROGER MILLIKEN RICHARD GEPHARDT HAS JOINED THE PARTY COSTUMED AS IS HIS HABIT AS THE CHESHIRE CAT THE STATE OF MICHIGAN APPEARS TO HAVE BEEN DEVOURED BY SCREECHING CREATURES HOUSE WHIP DAVID BONIOR AND SENATE BANKING CHAIRMAN DON RIEGLE FAMOUS FOR SKIRTING PAST THE KEATING FIVE WHIRLPOOL APPROPRIATELY FORMER CALIFORNIA GOVERNOR AND DEMOCRATIC PRESIDENTIAL CANDIDATE JERRY BROWN HAS JOINED THE PARTY DELIVERING SPEECHES AND ANTINAFTA DENUNCIATIONS AROUND THE COUNTRY DON'T LAUGH MR BROWN APPEARS TO HAVE AT LEAST ONE CONVERT TO THE ANTINAFTA CULT HIS SISTER CALIFORNIA TREASURER KATHLEEN BROWN LIKE ALCHEMISTS OF TIMES PAST THESE FOLKS NATURALLY HAVE A BOOK WHICH PURPORTS TO OVERTURN THE LAWS BY WHICH THE NORMAL WORLD FUNCTIONS IN THIS INSTANCE COMPARATIVE ADVANTAGE THEIR BOOK OF INCANTATIONS IS SAVE YOUR JOB SAVE OUR COUNTRY WHY NAFTA MUST BE STOPPED NOW AN EFFORT PRODUCED BY ROSS PEROT AND COALCHEMIST PAT CHOATE IN AN ERA OF THINNING POLITICAL CREDIBILITY THESE SUPERSTITIONS ARE ATTRACTING ATTENTION BOTH FOR THEIR ABILITY TO ENTERTAIN AND AROUSE MR PEROT IS HIMSELF A HILARIOUS MANUFACTURER OF METAPHORICAL BEASTS SUCH AS THE GREAT SUCKING SOUND RUMORED TO EXIST BUT SO FAR UNDETECTED REV JACKSON IS SPELLBINDING AND MR BUCHANAN IN THE SPIRIT OF POPULISTS PAST EVOKES FEARS WITH ELOQUENCE AND PASSION MEANWHILE A COVEN OF ENVIRONMENTALISTS FLUTTER AROUND THE RIO GRANDE CROAKING ABOUT IMPENDING ECOLOGICAL DOOM FROM COMMERCIAL ACTIVITY THE COSTUME PARTY ASIDE THE FACT REMAINS THAT POLITICAL SUPERSTITION HAS AN UNHAPPY HISTORY OF CAUSING SOCIETIES TO SHOW THEIR UGLIEST FACE MANY OF THE ANTINAFTA ARGUMENTS RELATING TO NET JOB LOSSES FOR EXAMPLE CAN BE REFUTED WITH DATA AND ANALYSIS AND THE NATURE OF CHANGE IN AN ADVANCED ECONOMY FROM SIMPLER FORMS OF MANUFACTURING TO MORE COMPLEX MANUFACTURING PROCESSES OR INTELLECTUALLY DRIVEN SERVICES IS SOMETHING MOST PEOPLE CAN RECOGNIZE EVEN AS IT PAINS THEM TO SEE BELOVED FORMS OF WORK SLIPPING AWAY BIGOTRY HOWEVER IS A MORE DANGEROUS BEAST IT HAS SHARP TEETH THE TARGET IS MEXICANS THE ANTINAFTA DEMAGOGUES WELL UNDERSTAND THAT AT THE END OF THE DAY THEIR BEST CHANCE LIES WITH ENCOURAGING THE WORST INSTINCTS IN MANY OF THEIR COUNTRYMEN AND SO VOICES IN THE US ARE NOW SAYING LOUDLY THAT CHEAP MEXICAN LABOR LIVING IN TARPAPER SHACKS WILL TAKE OUR JOBS AND POISON OUR AIR WHAT IS IMPORTANT TO NOTE HERE IS THAT THE ANTINAFTA CROWD IS ALL OVER THE LOT RHETORICALLY AND POLITICALLY BEREFT OF A COMMON SUBSTANTIVE POSITION WHAT ULTIMATELY BINDS THIS MOVEMENT TOGETHER IS THE POWER OF DEMAGOGUERY WE DON'T DOUBT THAT IF THIS WERE THE MID1980S WHEN SO MANY PEOPLE IN THE US WERE SWEEPING INTO NEW AND EXCITING FORMS OF WORK NAFTA LIKE THE TRADE AGREEMENT BACK THEN WITH CANADA WOULD BE PASSING THROUGH THE SYSTEM WITH LESS CONTROVERSY AND STRIDENCY BUT THE POSTREAGAN '80S HAVE PRODUCED UNCERTAIN ECONOMIC TIMES UNDER BOTH SUCCEEDING PRESIDENTS THEIR POLICIES HAVE PRODUCED NERVOUSNESS ABOUT THE FUTURE LEAVING PEOPLE VULNERABLE TO THE NOSTRUMS OF POPULIST WIZARDS OUR BELIEF REMAINS THAT THE AMERICAN PEOPLE UNDERSTAND THAT THEY ARE LIVING IN THE MODERN WORLD AND THAT A GLOBALIZED TRADING SYSTEM IS BOTH BENEFICIAL AND INEVITABLE WHAT REMAINS TO BE LEARNED IS WHETHER THE POLITICIANS STILL BELIEVE IN GOBLINS AND GHOSTS SEE RELATED LETTER LETTERS TO THE EDITOR UNFAIRLY WIDE SWIPE AT ANTINAFTA FORCES WSJ SEPT 27 1993 9309090149 YY93 MM09 9309270139 930927 TEXAS INDUSTRIES DEBT PACT DALLAS TEXAS INDUSTRIES INC SAID IT COMPLETED A 96 MILLION AGREEMENT WITH A GROUP OF BANKS TO REFINANCE DEBT THE AGREEMENT INCLUDES A 71 MILLION SIXYEAR TERM LOAN AND A 25 MILLION REVOLVING CREDIT LINE THE STEELMAKER SAID IT WILL USE THE TERM LOAN TO RETIRE 50 MILLION IN PUBLIC SUBORDINATED DEBT WITH AN INTEREST RATE OF 12 7/8 AND 21 MILLION IN PRIVATELY PLACED DEBT WITH AN INTEREST RATE OF 9 3/4 THE TERM LOAN CARRIES A FLOATING INTEREST RATE WHICH WILL CUT INTEREST EXPENSES 9309270138 930927 WHO'S NEWS CONCEPTRONIC INC CONCEPTRONIC INC PORTSMOUTH NH GARRY A PRIME CHAIRMAN WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MR PRIME 50 YEARS OLD SUCCEEDS H JOSEPH GISLER 53 WHO CONTINUES AS PRESIDENT THE COMPANY ALSO NAMED RICHARD S PERKINS JR A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN MR PERKINS 57 IS A MONEY MANAGER FOR REYNDERS GRAY & CO BOSTON CONCEPTRONIC MAKES PROCESS EQUIPMENT USED IN THE ASSEMBLY OF COMPUTER COMPONENTS AND CIRCUIT BOARDS 9309270137 930927 SNAPPLE BEVERAGE SPLIT CLEARED VALLEY STREAM NY SNAPPLE BEVERAGE CORP SAID STOCKHOLDERS APPROVED INCREASING ITS NUMBER OF AUTHORIZED SHARES CLEARING THE WAY FOR ITS SECOND 2FOR1 STOCK SPLIT THIS YEAR SNAPPLE SHARES ROSE 325 OR 72 TO 4825 IN HEAVY NATIONAL OVERTHECOUNTER TRADING FRIDAY THE PREVIOUSLY ANNOUNCED SPLIT WHICH WAS SUBJECT TO SHAREHOLDER APPROVAL OF AN INCREASE IN AUTHORIZED SHARES TO 140 MILLION FROM 70 MILLION TOOK EFFECT FRIDAY FOR STOCK OF RECORD SEPT 3 9309270136 930927 LEISURE & ARTS DANCE TWYLA THARP ON HER ART BY DALE HARRIS NEW YORK IF THE TWO PROGRAMS RECENTLY PRESENTED HERE BY TWYLA THARP AND DANCERS AT CITY CENTER DID NOTHING ELSE THEY SERVED TO AFFIRM THE CHOREOGRAPHER'S STATUS AS ONE OF THE FEW TRULY SIGNIFICANT FIGURES IN CONTEMPORARY DANCE NOT THAT EITHER OF MS THARP'S NEW OFFERINGS PROVED ESPECIALLY INTERESTING FEVER A JAZZY SOLO DEVISED BY THE CHOREOGRAPHER FOR HERSELF LACKED FOCUS AND THE SELECTIONS FROM DEMETER AND PERSEPHONE A FULLSCALE PIECE TO BE GIVEN ITS PREMIERE BY THE MARTHA GRAHAM COMPANY NEXT MONTH PERSUASIVENESS BUT MS THARP HAS LONG SINCE EARNED THE RIGHT TO OUR PATIENCE WHILE FEVER DOESN'T APPEAR TO BE SALVAGEABLE IT'S POSSIBLE THAT DEMETER AND PERSEPHONE ONE OF THE CHOREOGRAPHER'S INFREQUENT EXCURSIONS INTO NARRATIVE WILL SEEM MORE CONVINCING WHEN PRESENTED IN TOTO AND BY THE ARTISTS FOR WHOM IT WAS WRITTEN NEVERTHELESS IT MUST BE SAID THAT AS DANCED BY MS THARP JAMIE BISHTON AND SUNDRY MEMBERS OF HER CURRENT AD HOC TROUPE THE EXCERPTS WERE TOO FRAGMENTARY TO MAKE MUCH SENSE THEY ALSO LOOKED TOO HOKEY TO BE TAKEN SERIOUSLY A FACT UNDERSCORED BY THE AMBIVALENT SPOKEN COMMENTARY AT ONCE SELFCELEBRATORY AND SELFDEPRECATORY WITH WHICH THE CHOREOGRAPHER INTERLARDED THE PERFORMANCE LIKE EVERY DANCE MAKER OF DISTINCTION OF COURSE MS THARP HAS PRODUCED HER SHARE OF DUDS AMONG THEM WHEN WE WERE VERY YOUNG BAD SMELLS EVERLAST BUM'S RUSH NO DOUBT THERE WILL BE OTHERS IN LIGHT OF HER ACHIEVEMENT AS A WHOLE HOWEVER SUCH LAPSES ARE SURELY NEGLIGIBLE IN ANY CASE THE CHOREOGRAPHER TENDS TO RECOGNIZE HER FAILURES VERY QUICKLY AND TO DROP THEM RUTHLESSLY FROM HER REPERTOIRE ARTISTICALLY THE MOST IMPORTANT FEATURE OF THE CITY CENTER PROGRAMS PRESENTED UNDER THE GENERAL TITLE INFORMAL TALK AND PERFORMANCE WAS THE INCLUSION OF NINE SINATRA SONGS 1982 IN THE UPPER ROOM 1986 AND THE FINALE OF BAKER'S DOZEN 1979 THOUGH OFTEN DANCED IN NEW YORK ALL THREE PIECES LOOKED AS FRESH AND THRILLING AS EVER EVEN THOUGH THEY WERE PRESENTED WITHOUT THE PRODUCTION ELEMENTS THAT GAVE THEM SO MUCH OF THEIR ORIGINAL THEATRICAL FORCE REDUCED TO ITS BARE CHOREOGRAPHIC BONES IN THE UPPER ROOM IN PARTICULAR LOOKED NO LESS POWERFUL A STATEMENT OF THE HUMAN WILL TO SURVIVE THAN IT DID IN THE OLD DAYS WHEN IT HAD THE ADVANTAGE OF JENNIFER TIPTON'S APOCALYPTIC LIGHTING AND SANTO LOQUASTO'S EVOCATIVE SCENIC TRAPPINGS STILL DESPITE THE PLEASURE OF SEEING THESE WORKS AGAIN THERE WAS SOMETHING DEEPLY TROUBLING ABOUT INFORMAL TALK AND PERFORMANCE AN ELEMENT OF SELFINDULGENCE AT ODDS WITH THE ARTISTIC RIGOR THAT HAS MADE MS THARP SO EXCEPTIONAL AN ARTIST BOTH PROGRAMS WERE ESSENTIALLY LECTUREDEMONSTRATIONS DURING THE COURSE OF WHICH MS THARP DID SOME AMUSING PARTY TRICKS GOT OFF SOME EFFECTIVE ONELINERS AND SOLICITED THE AUDIENCE'S APPROVAL OF HER MOST RECENT WORKS THE LATTER PLOY WAS PARTICULARLY DISCONCERTING ANY CHOREOGRAPHER WHO OFFERS A WORK TO THE PUBLIC IS NATURALLY ENOUGH IMPLICITLY SEEKING ITS ENDORSEMENT AT CITY CENTER MS THARP SOUGHT THIS ENDORSEMENT WITH A BLATANCY THAT TO MY MIND SUBVERTED HER ARTISTIC AUTHORITY AND AT THE SAME TIME DREW ATTENTION TO THE INSUFFICIENCY OF HER LATEST PIECES BOTH OF WHICH GAVE THE IMPRESSION OF BEING WORKSINPROGRESS COMBINING THE FUNCTIONS OF COMMENTATOR CHOREOGRAPHER AND PERFORMER MS THARP PRESENTED FEVER AS THOUGH SHE WERE DOING SO FOR THE APPROVAL OF A GROUP OF BACKERS AND DEMETER AND PERSEPHONE AS IF IT WERE A TRAILER DESIGNED TO WHET THE AUDIENCE'S APPETITE FOR A DIFFERENT KIND OF ARTISTIC EXPERIENCE ALTOGETHER THE PARTY TRICKS WERE NO MORE SATISFYING AT THE END OF THE FIRST HALF OF EACH PROGRAM MS THARP DEMONSTRATED A COMPLEX MOVEMENT PHRASE TO HER ASSEMBLED COMPANY NONE OF WHOM APPARENTLY HAD EVER SEEN IT BEFORE SHE THEN INVITED THE AUDIENCE TO COME UP ONSTAGE AND JOIN THE DANCERS IN LEARNING IT THE HANDFUL WHO ACCEPTED THE CHALLENGE LOOKED AT BEST PROFICIENT AT WORST GOOD SPORTS THE EPISODE WAS NOT WITHOUT ITS CHARMS ON THE FIRST NIGHT HOWEVER IT WENT ON FOR FAR TOO LONG ON THE SECOND WHEN A DIFFERENT PHRASE WAS USED IT WAS BRIEFER AND MORE DIVERTING MS THARP HAD OBVIOUSLY SEEN THE PROBLEM AND MOVED WITH TYPICAL SPEED TO CORRECT IT ON NEITHER OCCASION THOUGH DID THE DEMONSTRATION THROW ANY LIGHT ON HER ART ONLY ON SOME ASPECTS OF HER MOVEMENT VOCABULARY AND ON HER MANNER OF TEACHING HER DANCERS THE STEPS IN ANY CASE THE SIGNALS WERE CONFUSING AT ONE POINT MS THARP ANNOUNCED REASONABLY ENOUGH THAT HER GOAL AS A CHOREOGRAPHER IS SIMPLY TO TOUCH AND EXCITE THE AUDIENCE THAT THE APPEAL OF DANCE IS ESSENTIALLY INSTINCTUAL YET MUCH OF HER TALK DURING THE EVENING WAS CONCERNED WITH THE ANALYSIS OF TECHNIQUE UP TO A POINT THIS IS AN INTERESTING SUBJECT BUT IT IS HARDLY CENTRAL TO AN APPRECIATION OF HER REMARKABLE CREATIVE GIFTS THE SAME MAY BE SAID ABOUT THE NOSTALGIC RETROSPECTION THAT PERMEATED BOTH PROGRAMS AND REACHED ITS CLIMAX WHEN MS THARP DISCUSSED THE GOOD OLD DAYS WITH SARA RUDNER A FORMER COMPANY MEMBER ASSOCIATED WITH THE CHOREOGRAPHER ALMOST FROM THE BEGINNING OF HER CAREER DELIGHTFUL AS IT WAS TO SEE THE EXTRAORDINARY MS RUDNER AGAIN SENTIMENTALITY ABOUT ONE'S OWN PAST IS A DANGEROUS DRUG IT WAS SURELY THE SELFINDULGENCE PRODUCED BY THIS KIND OF NOSTALGIA THAT LED MS THARP TO JOIN KEITH YOUNG ANOTHER OLDTIME MEMBER OF HER COMPANY INTO ASSAYING ONE FOR MY BABY IN NINE SINATRA SONGS THE SAD TRUTH IS THAT AT 51 MS THARP CAN NO LONGER PERFORM MOVEMENTS DESIGNED FOR BODIES HALF THAT OLD AND IT IS UNSEEMLY FOR HER TO TRY TO DO SO IN PUBLIC DESPITE THE PRESENCE IN THESE PROGRAMS OF SO MUCH THAT WAS ARTISTICALLY UNWORTHY THE COMPANY DANCED SUPERBLY ESPECIALLY THE ENCHANTING JULIE MICHAEL AND THE BRILLIANT MR BISHTON AS FINE A MALE DANCER AS THE CHOREOGRAPHER HAS EVER HAD IN HER TROUPE BUT THE QUESTION ABIDES WHY IS TWYLA THARP NOT DEVOTING HER ENERGIES TO CHOREOGRAPHY INSTEAD OF SQUANDERING THEM ON WHAT IS IN EFFECT A HIGHCLASS CHAT SHOW IN OCTOBER TWYLA THARP AND DANCERS APPEAR IN TORONTO AND DETROIT EARLY NEXT YEAR THEY GO TO BOSTON PHILADELPHIA COLUMBUS DENVER AND BERKELEY 9309270135 930927 DIVIDEND NEWS MARVEL ENTERTAINMENT GROUP INC MARVEL ENTERTAINMENT GROUP INC ANNOUNCED A 2FOR1 STOCK SPLIT AND ITS SHARES JUMPED AFTER THE NEWS THE COMICBOOK PUBLISHER'S STOCK ROSE 175 OR 4 FRIDAY TO 44625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE NEW YORK COMPANY WHICH IN MARCH PROJECTED 1993 SALES WILL TOTAL 462 MILLION SAID THE SPLIT IS EFFECTIVE NOV 1 FOR SHARES OF RECORD OCT 15 IT SAID THE SPLIT WILL INCREASE ITS COMMON SHARES OUTSTANDING TO 972 MILLION FROM 486 MILLION 9309270134 930927 WHO'S NEWS BHC COMMUNICATIONS INC BHC COMMUNICATIONS INC NEW YORK THIS OWNER AND OPERATOR OF TELEVISION STATIONS ELECTED VIN WEBER TO ITS BOARD OF DIRECTORS INCREASING ITS MEMBERSHIP TO NINE A FORMER CONGRESSMAN FROM MINNESOTA MR WEBER 41 YEARS OLD IS CURRENTLY PRESIDENT OF WEBER GROUP INC A WASHINGTONBASED CONSULTING CONCERN 9309270133 930927 INTERNATIONAL DAEWOO GROUP'S CHINA VENTURE SEOUL SOUTH KOREA'S DAEWOO GROUP SAID IT SIGNED AN AGREEMENT TO BUILD A PLANT TO PRODUCE BUSES IN A JOINT VENTURE WITH CHINA'S GUILIN AUTO COACH FACTORY IN GUANGXI ZHUANG AUTONOMOUS REGION CHINA UNDER TERMS DAEWOO WILL INVEST 60 OF THE COMPANY'S CAPITAL OR 25 MILLION WHILE THE CHINESE PARTNER WILL PUT UP THE REST THE TOTAL INVESTMENT FOR THE CONSTRUCTION OF THE VENTURE WHICH WILL BE CALLED GUILINDAEWOO BUS CO WILL BE 35 MILLION A DAEWOO OFFICIAL SAID PRODUCTION WILL START IN 1994 WITH AN ANNUAL CAPACITY OF 2500 BUSES WHICH WILL GRADUALLY EXPAND TO 5000 UNITS A YEAR BY THE END OF 1996 9309270132 930927 CISCO SYSTEMS' ACQUISITION MENLO PARK CALIF CISCO SYSTEMS SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF CRESCENDO COMMUNICATIONS INC A CLOSELY HELD COMPUTERNETWORKING COMPANY IN SUNNYVALE FOR TWO MILLION SHARES BASED ON FRIDAY'S CLOSING PRICE OF 4850 UP 125 IN NATIONAL OVERTHECOUNTER TRADING THE DEAL HAS AN INDICATED VALUE OF 97 MILLION CISCO SYSTEMS IS THE US'S BIGGEST SUPPLIER OF EQUIPMENT LINKING TOGETHER COMPUTER NETWORKS 9309270131 930927 RADIATION SYSTEMS PACT STERLING VA RADIATION SYSTEMS INC SAID IT REACHED AN AGREEMENT WITH PARKER COMMUNICATIONS SYSTEMS INC TAMPA FLA TO PROVIDE AND INSTALL INSTORE ADVERTISING SYSTEMS IN GROCERY STORES RADIATION SYSTEMS SAID THE FIRST PHASE OF THE AGREEMENT VALUED AT 6 MILLION CALLS FOR IT TO PROVIDE INSTALL AND FINANCE EACH STORE SYSTEM THE FIRST PHASE IS EXPECTED TO BE COMPLETED IN 18 MONTHS RADIATION SYSTEMS WHICH HAS REPRESENTATION ON THE PARKER COMMUNICATIONS BOARD SAID IT WILL RECEIVE OPTIONS TO ACQUIRE UP TO 10 OF PARKER'S STOCK 9309270130 930927 ALL FOR A DOLLAR'S CONDUCT TO BE PROBED AFTER COMPANY'S PRESIDENT IS INDICTED BY WILLIAM M BULKELEY STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL INVESTIGATORS SAY THEY WILL EXAMINE WHETHER ALL FOR A DOLLAR INC SOLD STOLEN MERCHANDISE IN AN INVESTIGATION THAT HAS YIELDED THE INDICTMENT OF THE COMPANY'S PRESIDENT FOR ALLEGED PARTICIPATION IN A HUGE THEFT RING ROGER SLATE THE RETAIL CHAIN'S PRESIDENT AND CHIEF OPERATING OFFICER WAS ONE OF 59 PEOPLE INDICTED LAST WEEK AFTER A 14MONTH FEDERAL BUREAU OF INVESTIGATION STING OPERATION THE FBI SAYS THE DEFENDANTS STOLE AT LEAST 25 MILLION OF GOODS IN VARIOUS STATES THEN RESOLD THEM AT FLEA MARKETS AND RETAIL OUTLETS ALL FOR A DOLLAR WHICH SPECIALIZES IN CLOSEOUT GOODS IS BASED IN SPRINGFIELD MASS AND HAS ABOUT 150 OUTLETS THE INDICTMENTS WERE HANDED UP IN US DISTRICT COURT IN GREENVILLE SC MR SLATE IS CHARGED WITH CONSPIRACY TO TRANSPORT STOLEN GOODS INTERSTATE THE INDICTMENT IDENTIFIES HIM AS HAVING SENT AN ALLOTMENT OF STOLEN PHOTOGRAPHIC FILM TO ANOTHER MEMBER OF THE CONSPIRACY BUT BILL YARBOROUGH ASSISTANT US ATTORNEY IN GREENVILLE SAID MOST OF OUR INFORMATION SHOWS A FLOW OUT OF SOUTH CAROLINA TO HIM IN MASSACHUSETTS HE ADDS THAT INVESTIGATORS BELIEVE HIS INVOLVEMENT WOULD BE MORE AS A RECEIVER OF STOLEN PROPERTY THAN AS A DISTRIBUTOR MR SLATE DIDN'T RETURN TELEPHONE CALLS ALL FOR A DOLLAR RELEASED A STATEMENT THAT MR SLATE STRONGLY DENIES THE CHARGES IT ADDED THAT THE INDICTMENT DOES NOT ALLEGE ANY WRONGDOING BY ALL FOR A DOLLAR MARTIN EFFRON CHAIRMAN AND CHIEF EXECUTIVE SAID THAT MR SLATE HASN'T BEEN ASKED TO STEP ASIDE WHY SHOULD HE ASKED MR EFFRON IF EVERYONE IN THIS COUNTRY TOOK LEAVES OF ABSENCE BECAUSE THEY WERE ACCUSED OF SOMETHING NOBODY WOULD BE WORKING IN OVERTHECOUNTER TRADING FRIDAY ALL FOR A DOLLAR STOCK FELL 50 CENTS OR 18 TO 225 ALL FOR A DOLLAR IS ONE OF A NUMBER OF RETAILERS THAT HAVE GROWN RAPIDLY IN RECENT YEARS BY PRICING EVERY ITEM FOR A DOLLAR OR LESS WITH STORES IN NEW ENGLAND NEW YORK PENNSYLVANIA AND NEW JERSEY ALL FOR A DOLLAR REPORTED 1992 SALES OF 585 MILLION DOUBLE THE YEAREARLIER LEVEL THE COMPANY WENT PUBLIC IN 1992 AT 9 A SHARE ITS STOCK ROSE AS HIGH AS 1375 THIS YEAR BUT PLUMMETED IN THE FIRST QUARTER AS EARNINGS FELL IN APRIL SOME STOCKHOLDERS FILED A LAWSUIT IN NEW YORK CHARGING THE COMPANY WITH MISREPRESENTATIONS IN ITS INITIAL PROSPECTUS AND OTHER FILINGS AT THE TIME THE COMPANY SAID THE ALLEGATIONS WERE WITHOUT MERIT 9309270129 930927 HEARD ON THE STREET VALLEY FASHIONS' FUTURE COULD BE AS BRIGHT AS ITS CORE NUGGET OF WEST POINTPEPPERELL BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL WITHIN THE DEBTRIDDEN HULK OF VALLEY FASHIONS LIES A SUNKEN TREASURE THE SOLID CORE OF WEST POINTPEPPERELL WEST POINT IS THE NATION'S LARGEST MAKER OF SHEETS AND SECONDLARGEST MAKER OF TOWELS BEHIND FIELDCREST CANNON IT HAS LOW PRODUCTION COSTS MODERN EQUIPMENT AND THE HIGHEST OPERATING PROFIT MARGINS IN ITS INDUSTRY IT BOASTS THE RALPH LAUREN BRAND AT THE HIGH END AMONG ITS OTHER BRANDS ARE MARTEX UTICA LADY PEPPERELL STEVENS AND VELLUX TOP MANAGERS HOLCOMBE GREEN AND JOSEPH L JENNINGS JR ARE HIGHLY REGARDED IN THE INDUSTRY VALLEY FASHIONS WHICH OWNS 95 OF WEST POINT ENTERED CHAPTER 11 BANKRUPTCY PROCEEDINGS LAST YEAR EMERGED FROM BANKRUPTCY COURT A FEW MONTHS LATER AND BEGAN TRADING ON THE NASDAQ NATIONAL MARKET SYSTEM LESS THAN TWO MONTHS AGO VALLEY IS THE SUCCESSOR CORPORATION TO ONE SET UP BY WHEELERDEALER WILLIAM FARLEY WHEN HE BOUGHT MOST OF WEST POINT IN 1989 MR FARLEY'S COMPANY STAGGERED AND FELL UNDER THE WEIGHT OF ITS DEBT SOON VALLEY AND WEST POINT WHICH ARE BOTH BASED IN WEST POINT GA WILL BECOME ONE THIS MONTH VALLEY SAID IT WILL BUY THE LAST 5 OF WEST POINT FOR AN UNDISCLOSED PRICE INDUSTRY SOURCES GUESS IT MAY BE ABOUT 56 A SHARE OR 78 MILLION THE COMBINED COMPANY WILL BE CALLED WEST POINT STEVENS A NOD TO THE JP STEVENS UNIT THAT WEST POINT ACQUIRED IN 1988 BY BUYING VALLEY AT FRIDAY'S PRICE OF 13 INVESTORS CAN GET THE TOP COMPANY IN THE INDUSTRY SELLING AT A DEEPDISCOUNT VALUATION TO ITS PEERS SAYS MITCH KUFLIK A PARTNER WITH BRAHMAN SECURITIES AND BRAHMAN PARTNERS WE THINK IN THREE YEARS VALLEY WILL BE EARNING 3 A SHARE OF REPORTED FULLY TAXED EARNINGS MR KUFLIK SAYS AT THAT POINT WE EXPECT THE STOCK WILL SELL FOR 45 TO 50 A SHARE IF HE PROVES RIGHT THAT WOULD BE AN ANNUAL GAIN OF BETTER THAN 50 A YEAR BUT THERE ARE MANY HURDLES TO GET TO THAT PROMISED LAND WEST POINT STEVENS WILL START LIFE WITH NEGATIVE REPORTED NET WORTH IN LARGE PART THAT'S DUE TO A SLEW OF NONCASH CHARGES THAT SOME ANALYSTS SHRUG OFF AS MERE BOOKKEEPING ENTRIES BUT WEST POINT STEVENS WILL HAVE TO PAY INTEREST ON 12 BILLION OF DEBT AND THAT'S HARDER TO SHRUG OFF VALLEY HAS THE WORST BALANCE SHEET I'VE EVER SEEN SAYS KAY NORWOOD ANALYST WITH INTERSTATE/JOHNSON LANE IN CHARLOTTE NC THEY HAVE SOME VERY GOOD BRAND NAMES BUT AN INCREDIBLE AMOUNT OF DEBT SHE SAYS IT'S NOT PRETTY YOU JUST CAN'T MAKE IT PRETTY LAST WEEK VALLEY ANNOUNCED THAT IT WILL REFINANCE ITS DEBT CURRENTLY A HUGE BALLOON PAYMENT IS DUE IN 1996 VALLEY WILL PROBABLY GET A MIXTURE OF JUNKBOND AND BANK FINANCING THAT WILL STRETCH PAYMENTS OVER A 12YEAR PERIOD OR SO JOSEPHINE ESQUIVEL OF LEHMAN BROTHERS SAYS WEST POINT STEVENS COULD BE AN EXCITING STORY AFTER THE CURRENT TANGLED FINANCES ARE SIMPLIFIED BUT SHE WOULDN'T JUMP IN AT LEAST UNTIL SHE SEES THE RESULTS OF THE REFINANCING OTHERS ON WALL STREET DECLINE TO BE QUOTED BECAUSE THEIR FIRMS ARE IN ON THE PROPOSED REFINANCING OR HOPE TO BE SEVERAL EXPRESS ADMIRATION FOR WEST POINT AS AN OPERATING COMPANY IT'S A TERRIFIC COMPANY SAYS ONE ANALYST BUT JUST A SOSO STOCK STILL HE MUSES IF YOU'RE A SPECULATOR IT'S A VERY INTERESTING VEHICLE SOME SPECULATORS WITH A REPUTATION AS SHREWD STOCK PICKERS HOLD CHUNKS OF THE STOCK AMONG THEM ARE LEON BLACK OF APOLLO INVESTMENT FUND TALTON EMBRY OF MAGTEN ASSET MANAGEMENT AND LAURENCE TISCH CHIEF EXECUTIVE OFFICER OF LOEWS AND CBS NEW STREET CAPITAL A PARTNERSHIP ORIGINALLY SET UP BY DREXEL BURNHAM LAMBERT OWNS NEARLY 20 NEW STREET WILL BE SOLD SOON SO WHOEVER BUYS IT WILL BECOME THE OWNER OF THAT BIG BLOCK IF WEST POINT STEVENS DECIDES TO ISSUE STOCK TO REDUCE DEBT CURRENT SHAREHOLDERS' VALUE COULD BE DILUTED MR KUFLIK SAYS A FUTURE STOCK OFFERING IS POSSIBLE BUT HE DOUBTS THE COMPANY WOULD DO ONE UNTIL THE SHARES HAVE RISEN CONSIDERABLY FROM THEIR CURRENT LEVEL WEST POINTPEPPERELL DIDN'T SURRENDER ITS INDEPENDENCE WILLINGLY IN 1989 WHEN MR FARLEY STARTED TRYING TO ACQUIRE IT PEPPERELL'S CHAIRMAN JOSEPH LANIER SAID THE COMPANY WOULD FIGHT MR FARLEY UNTIL HELL FROZE OVER AND THEN FIGHT ON THE ICE MAYBE IT SHOULD HAVE FOUGHT EVEN HARDER BUT MR FARLEY IS GONE NOW AND INVESTORS WITH A TASTE FOR RISK HAVE A CHANCE FOR BIG SPECULATIVE PROFITS IF WEST POINT STEVENS CAN CLIMB OUT OF ITS DEBT DITCH AND LET ITS MERITS AS A BUSINESS SHINE AGAIN 9309270128 930927 GLOBAL VIEW YELTSIN TRIUMPHS BUT SOME BILLS WILL COME DUE BY GEORGE MELLOAN BORIS YELTSIN WAS IN RED SQUARE YESTERDAY SMILING AND SHAKING HANDS AND HONORING THE FAMOUS RUSSIAN CELLIST MSTISLAV ROSTROPOVICH NOT FAR AWAY ALEXANDER RUTSKOI WAS OUTSIDE THE RUSSIAN WHITE HOUSE WITH A MEGAPHONE EXHORTING A DISPIRITED GROUP OF DIEHARDS TO PROTEST MR YELTSIN'S TUESDAY NIGHT SUSPENSION OF PARLIAMENT PARLIAMENTARIANS STILL HOLDING OUT INSIDE WERE LITERALLY IN THE DARK POWER AND PHONE LINES HAVING BEEN SWITCHED OFF BY PRESIDENTIAL ORDER MUSCOVITES SEEMED NOT VERY INTERESTED IN THEIR PLIGHT MR YELTSIN PLAYS POLITICS THE WAY MR ROSTROPOVICH PLAYS THE CELLO WITH VIRTUOSITY HE FIRST CHALLENGED AND THEN TOPPLED MIKHAIL GORBACHEV COLLAPSING THE COMMUNIST PARTY AS WELL THEN HE ASKED THE PARLIAMENT MR GORBACHEV HAD PACKED WITH COMMUNISTS TO APPROVE A NEW CONSTITUTION AND SUBMIT TO POPULAR ELECTIONS SOMETHING MOST MEMBERS DID NOT AT ALL WISH TO DO SO HE TURNED TO LEADERS OF THE RUSSIAN FEDERATION'S 88 REGIONS AND REPUBLICS DRAWING HEAVILY UPON THEM FOR A 585MEMBER CONSTITUTIONAL ASSEMBLY WHICH BEGAN DRAFTING A BASIC LAW GREATLY DECENTRALIZING GOVERNMENTAL POWER AS THE PARLIAMENT BECAME INCREASINGLY OBSTRUCTIONIST MR YELTSIN PLAYED THE CARD HE HAD PLAYED AGAINST MR GORBACHEV GOING TO THE PEOPLE IN A REFERENDUM LAST SPRING HE WON THEIR SUPPORT IN HIS STRUGGLE WITH PARLIAMENT AT THE SAME TIME HE WAS CAREFULLY MANAGING THE TWO SOURCES OF NAKED POWER THE MILITARY AND THE KGB THE PARLIAMENT HELPED HIM THERE BY FOOLISHLY TRYING TO FIRE DEFENSE MINISTER PAVEL GRACHEV THUS CEMENTING HIS LOYALTY TO THE PRESIDENT TO DEAL WITH THE KGB MR YELTSIN SIMPLY DECAPITATED IT FIRING SECURITY CHIEF MIKHAIL BARANNIKOV AND TAKING DIRECT CHARGE OF AMONG OTHER OF ITS ASSETS THE FEARED DZERZHINSKY DIVISION WHICH HAS MILITARY CONTROL OF THE MOSCOW DISTRICT TO SHOW THE DZERZHINSKY CROWD HE WAS BOSS HE VISITED THEM JUST BEFORE ISSUING HIS TUESDAY NIGHT DECREE THE PARLIAMENT WAS IN TOTAL DISARRAY BY SEPTEMBER AND COMMITTED ITS FINAL ERROR ATTEMPTING TO PASS A WILDLY INFLATIONARY BUDGET AFTER TWO PRESIDENTIAL VETOES AT THAT POINT MR YELTSIN SNAPPED THE TRAP SHUT GOING ON TV TO ANNOUNCE THAT HE WAS SUSPENDING PARLIAMENT AND CALLING NEW PARLIAMENTARY ELECTIONS DECEMBER 1112 PARLIAMENT'S EFFORTS TO RALLY A MILITARY RESPONSE FIZZLED AND BY WEDNESDAY AFTERNOON MR YELTSIN AND MR GRACHEV WERE STROLLING AROUND PUSHKIN SQUARE RECEIVING CONGRATULATIONS FROM WELLWISHERS MR RUTSKOI ELECTED PRESIDENT BY THE PARLIAMENT AFTER IT VOTED TO FIRE MR YELTSIN BY THE WEEKEND HAD BECOME A FIGURE OF RIDICULE THE WHOLE THING WAS SKILLFULLY MANAGED BUT IF THE OUTCOME IS TO BE THE STABLE DEMOCRATIC GOVERNMENT RUSSIA SO BADLY NEEDS THE WEEKS JUST AHEAD WILL REQUIRE FURTHER DISPLAYS OF VIRTUOSITY THE BRIGHTER MEMBERS OF THE PARLIAMENT ARE NOW ON THEIR WAY HOME TO WASTE NO TIME BUILDING POLITICAL SUPPORT FOR THE ELECTION MR YELTSIN HAS CALLED FOR DECEMBER EVEN SOME OF THE NEANDERTHAL TYPES MAY BE ABLE TO WIN BACK THEIR SEATS DESPITE HIS SKILL IN OUTMANEUVERING HIS OPPONENTS MR YELTSIN HAS MADE ONE MISTAKE HE HAS NOT BUILT A COHESIVE POLITICAL PARTY TO SUPPORT CANDIDATES WHO SHARE HIS GOAL OF A FREEMARKET CONSTITUTIONAL FEDERAL REPUBLIC FORMER PRIME MINISTER AND CHIEF ECONOMIC REFORMER YEGOR GAIDAR A PARLIAMENT VICTIM NOW REINSTALLED AS FIRST DEPUTY PRIME MINISTER HAS STARTED A PRIVATE ENTERPRISE ASSOCIATION THAT COULD GROW INTO A REAL PARTY BUT IT WON'T HAVE MUCH TIME TO DO SO THEN THERE IS THE QUESTION OF WHAT ELECTORAL LAW WILL SET THE RULES FOR THE NEW ELECTIONS MR YELTSIN HAS A DRAFT ELECTORAL LAW THAT BY USING PROPORTIONAL REPRESENTATION TO FILL SOME SEATS WOULD STRIKE A BALANCE BETWEEN SMALL AND LARGE PARTIES BUT THERE IS ALWAYS THE DANGER THAT FORMER COMMUNISTS COULD REVIVE THEIR OLD ORGANIZATIONAL STRUCTURES UNDER A DIFFERENT NAME NO DOUBT AND BE A FORMIDABLE FORCE AGAINST BADLY ORGANIZED PARTIES SOMETHING LIKE THAT HAPPENED IN POLAND TWO WEEKENDS AGO ALTHOUGH IN THE CASE OF RUSSIA THE PARTY THAT EMERGES WOULD PROBABLY BE LESS REFORMMINDED THAN THE TWO FORMER COMMUNIST GROUPS THAT WON A COMBINED MAJORITY IN POLAND'S PARLIAMENT MR YELTSIN NO DOUBT HOPES THAT THE PROMISES OF DECENTRALIZATION HE MADE TO THE REPUBLICS AND REGIONS WILL PROVIDE POLITICAL MOMENTUM TO ELECT A NEW PARLIAMENT WILLING TO SUPPORT THE DRAFT FEDERAL CONSTITUTION THE DRAFT COMPLETED JULY 12 CLEARLY STATES THAT THE RUSSIAN FEDERATION WILL REMAIN ONE COUNTRY BUT IT NONETHELESS AWARDS A GREAT DEAL OF SOVEREIGN POWER TO THE REPUBLICS SO MUCH IN FACT THAT NOW SOME 67 REGIONS WANT TO BE UPGRADED TO REPUBLIC STATUS THEN THERE IS THE QUESTION OF WHO IS TO APPROVE THE ELECTORAL LAW SINCE THE SITTING PARLIAMENT HAS BEEN SUSPENDED QUITE POSSIBLY MR YELTSIN WILL ENDEAVOR TO HAVE IT APPROVED BY HIS CONSTITUTIONAL CONFERENCE USING THAT BODY IN EFFECT AS AN ALTERNATIVE PARLIAMENT THE UNDERLYING QUESTION IN ALL OF THIS IS WHETHER MR YELTSIN HAS GIVEN AWAY TOO MUCH TO THE REGIONS SOME SUCH AS THE TATAR REPUBLIC ARE INDEPENDENTMINDED TO BEGIN WITH WITH THE FEDERAL PARLIAMENT IN SUCH DISARRAY REPUBLICS REGIONS AND EVEN MUNICIPALITIES HAVE BEEN ASSUMING POWER ON A DE FACTO BASIS AND NO DOUBT WILL BE RELUCTANT TO GIVE IT UP IT IS TOO MUCH TO EXPECT THAT ONCE A CONSTITUTION IS IN PLACE THE REGIONAL GOVERNMENTS WILL BE ETERNALLY GRATEFUL TO MR YELTSIN TO THE EXTENT OF SLAVISHLY FOLLOWING FEDERAL LAW FINALLY THERE IS THE QUESTION OF THE MILITARY SOME AMERICAN HAWKS NOTE THAT TO KEEP THE MILITARY'S SUPPORT MR YELTSIN HAS HAD TO PRETEND NOT TO NOTICE CERTAIN ENTREPRENEURIAL ACTIVITIES OFFICERS HAVE BEEN CONDUCTING SUCH AS USING THEIR PLANES TO HAUL ADVANCED SCUD MISSILES FROM NORTH KOREA TO SYRIA THESE ANALYSTS FEAR THAT THE RUSSIAN OFFICER CORPS BADLY HOUSED AND DEMORALIZED MAY ALREADY BE MOVING IN THE DIRECTION OF THE CHINESE PEOPLE'S LIBERATION ARMY THAT IS SOME OFFICERS AND UNITS ARE GOING INTO BUSINESS FOR THEMSELVES CREATING A REGIONALIZATION OF MILITARY AS WELL AS POLITICAL POWER THIS MAKES AN ARMY LESS DANGEROUS IN THAT IT HAS GREATER DIFFICULTY MOUNTING A NATIONAL EFFORT BUT IN ANOTHER SENSE IT BECOMES MORE DANGEROUS BECAUSE IT IS LESS SUBJECT TO NATIONAL POLITICAL CONTROL IN THE TRANSCAUCASUS FIGHTING WE ALREADY MAY BE SEEING SOME OF THE CONSEQUENCES OF RED ARMY DECENTRALIZATION IF REPORTS OF RUSSIAN UNITS AIDING REBEL GROUPS ARE TRUE ONE THING IS EVIDENT HOWEVER MR YELTSIN IS GOOD AT HIS DANGEROUS GAMES AND EVEN SEEMS TO ENJOY THEM FOES WHO HAVE FAILED TO NOTICE THAT USUALLY HAVE BEEN SORRY 9309270127 930927 CREDIT RATINGS TIMES MIRROR CO LOS ANGELES MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS MEDIA COMPANY'S SENIOR NOTES AND DEBENTURES TO SINGLEA2 FROM SINGLEA1 MOODY'S SAID THE ACTION WAS BASED ON EXPECTATIONS THAT THE PERFORMANCE OF THE COMPANY'S NEWSPAPERS WILL REMAIN UNDER PRESSURE FOR THE INTERMEDIATE TERM TIMES MIRROR'S NEWSPAPER SEGMENT AMONG OTHER THINGS WILL CONTINUE TO SUFFER FROM ITS CONCENTRATION IN ECONOMICALLY HARDPRESSED CALIFORNIA AND NEW YORK MOODY'S SAID THE DOWNGRADE COMPLETES A REVIEW BEGUN BY THE RATING AGENCY IN JUNE 9309270126 930927 TEXAS INSTRUMENTS COMPAQ PACT DALLAS TEXAS INSTRUMENTS INC SAID IT HAD REACHED A PATENT CROSSLICENSING AGREEMENT WITH COMPAQ COMPUTER CORP HOUSTON TEXAS INSTRUMENTS SAID THAT UNDER THE EIGHTYEAR PACT THE COMPANIES WOULD CROSSLICENSE CERTAIN OF EACH OTHER'S PERSONAL COMPUTER PATENTS WITH COMPAQ MAKING BALANCING PAYMENTS TO TEXAS INSTRUMENTS INCLUDING A PAYMENT FOR COMPAQ'S PAST USAGE OF TEXAS INSTRUMENTS' PATENTS TEXAS INSTRUMENTS SAID THAT THE CATCHUP PAYMENT FOR WHICH IT SAID COMPAQ HAS TAKEN SUFFICIENT RESERVES WILL BE INCLUDED IN ITS THIRDQUARTER FINANCIAL RESULTS EXACT DOLLAR AMOUNTS WEREN'T DISCLOSED 9309270125 930927 WHO'S NEWS ROUSE CO ROUSE CO COLUMBIA MD THIS REAL ESTATE DEVELOPER NAMED THE FOLLOWING SENIOR VICE PRESIDENTS JEFFREY H DONAHUE 47 YEARS OLD CHIEF FINANCIAL OFFICER DUKE S KASSOLIS 42 DIRECTOR OFFICE AND MIXEDUSE OPERATIONS PAUL I LATTA JR 50 DIRECTOR RETAIL OPERATIONS ROBERT MINUTOLI 43 DIRECTOR ACQUISITIONS ROBERT D RIEDY 48 DIRECTOR RETAIL LEASING ALTON J SCAVO 47 DIRECTOR COMMUNITY DEVELOPMENT AND GENERAL MANAGER OF COLUMBIA JEROME D SMALLEY 43 DIRECTOR COMMERCIAL AND OFFICE DEVELOPMENT AND GEORGE L YUNGMANN 51 CONTROLLER ROUSE ALSO NAMED THE FOLLOWING VICE PRESIDENTS JODY L CLARK 35 GROUP DIRECTOR OFFICE AND MIXEDUSE OPERATIONS PATRICIA H DAYTON 36 TREASURER DAVID R SCHWIESOW 42 ASSOCIATE GENERAL COUNSEL AND KAREN L WEIR 40 DIRECTOR OF SPECIALTY RETAILING 9309270124 930927 WHO'S NEWS DUN & BRADSTREET CORP DUN & BRADSTREET CORP NEW YORK WIJEYARAJ MAHADEVA 42 YEARS OLD WAS NAMED VICE PRESIDENT OF ASIAN BUSINESS DEVELOPMENT AT THIS BUSINESS INFORMATION MARKETER A NEW POSITION MR MAHADEVA HAS BEEN DIRECTOR OF CORPORATE STRATEGIC PLANNING 9309270123 930927 FINANCING BUSINESS FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS CLEVELAND SAID IT IS OFFERING 100 MILLION IN SENIOR NOTES DUE OCT 1 2003 THE NONCALLABLE NOTES WILL CARRY AN 8 7/8 INTEREST RATE AND WILL BE OFFERED AT A PRICE OF 99187 SALOMON BROTHERS INC IS MANAGING THE OFFERING THE REAL ESTATE INVESTMENT TRUST ALSO SAID IT CLOSED A 35 MILLION MORTGAGE LOAN SECURED BY CROSSROADS CENTER A ST CLOUD MINN SHOPPING MALL THE 10YEAR LOAN HAS A FLOATING INTEREST RATE OVER THE LONDON INTERBANK OFFERED RATE WITH A CAP OF 95 FIRST UNION WILL USE BOTH FINANCING PACKAGES TO PAY DOWN DEBT 9309270122 930927 ACTON SELLS CABLE TV HOLDINGS RALEIGH NC ACTON CORP A HOLDING COMPANY WITH INTERESTS IN AUTOMOBILE INSURANCE REAL ESTATE AND MANUFACTURING SAID IT AGREED TO SELL ITS CABLE TELEVISION HOLDINGS TO A CLOSELY HELD INVESTOR GROUP FOR 76 MILLION INTERMEDIA PARTNERS III AN INVESTMENT PARTNERSHIP IN SAN FRANCISCO WHOSE OWNERS INCLUDE TELECOMMUNICATIONS INC SUMITOMO CORP AND BANK OF NEW YORK CO IS BUYING THE CABLE SYSTEM IN ANNE ARUNDEL COUNTY MARYLAND ACTON SAID THE SYSTEM IN THE SUBURBAN WASHINGTON DC MARKET HAS ABOUT 44000 SUBSCRIBERS THE DEAL IS EXPECTED TO CLOSE BY YEAR END 9309270121 930927 FINANCING BUSINESS DIME SAVINGS BANK OF NEW YORK DIME SAVINGS BANK OF NEW YORK SAID IT WILL OFFER 100 MILLION OF 105 NONCUMULATIVE EXCHANGEABLE PREFERRED STOCK AS PART OF AN EFFORT TO MEET IMPENDING REGULATORY CAPITAL REQUIREMENTS THE NEW YORKBASED BANK SAID ITS CURRENT LEVERAGE CAPITAL RATIO AND RISKBASED RATIO SATISFY CURRENT REGULATIONS BUT THOSE NUMBERS WILL BE TOUGHENED BY THE OFFICE OF THRIFT SUPERVISION AT THE END OF 1994 CURRENTLY THE BANK'S LEVERAGE RATIO IS 553 AND ITS RISKBASED RATIO IS 929 THE REGULATIONS STIPULATE MINIMUM RATIOS OF 5 AND 9 IN 1994 THE RATIOS MUST BE AT LEAST 6 AND 10 RESPECTIVELY DIME SAVINGS SAID THE PREFERRED ISSUE IS SCHEDULED TO EXPIRE NOV 15 2005 DIME SAVINGS SAID THAT IF IT FORMS A HOLDING COMPANY IT MAY ELECT TO MAKE THE PREFERRED ISSUE EXCHANGEABLE INTO SENIOR DEBT OF THE HOLDING COMPANY SUCH DEBT WOULD CARRY A 105 COUPON AND EXPIRE NOV 15 2005 9309270120 930927 BANC ONE NEBRASKA ACQUISITION COLUMBUS OHIO BANC ONE CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE NEBRASKA CAPITAL CORP WHICH OWNS HAVELOCK BANK IN LINCOLN NEB TERMS WEREN'T DISCLOSED THE TRANSACTION IS CONTINGENT ON A DEFINITIVE AGREEMENT AND THE COMPLETION OF THE PENDING ACQUISITION OF FIRSTIER FINANCIAL INC IN OMAHA NEB BANC ONE EXPECTS TO CLOSE THE NEBRASKA CAPITAL ACQUISITION IN THE SECOND QUARTER OF 1994 NEBRASKA CAPITAL HAS 95 MILLION IN ASSETS BANC ONE'S TOTAL 755 BILLION 9309270119 930927 INTERNATIONAL MCCAIN BROTHERS TO PURSUE AN OUTOFCOURT SETTLEMENT FLORENCEVILLE NEW BRUNSWICK THE TWO BROTHERS WHO RUN MCCAIN FOODS LTD AGREED TO PURSUE AN OUTOFCOURT SETTLEMENT OF THEIR DISPUTE OVER CONTROL OF THE CANADIAN FROZENFOODS COMPANY AVERTING A THREATENED SHOWDOWN UNDER THE AGREEMENT WALLACE MCCAIN WILL REMAIN COCHIEF EXECUTIVE OF THE FAMILYOWNED COMPANY WHILE THE SETTLEMENT IS WORKED OUT MR MCCAIN 63 YEARS OLD HAD ASKED A NEW BRUNSWICK COURT TO BLOCK A BOARD RESOLUTION THAT WOULD HAVE FORCED HIM OUT OF OFFICE AT THE END OF THIS MONTH COURT PROCEEDINGS WERE DISCONTINUED FRIDAY WALLACE HAS CHARGED THAT HIS 65YEAROLD BROTHER HARRISON SUBVERTED A LONGTERM SUCCESSION PROCESS ESTABLISHED BY THE COMPANY BECAUSE HARRISON DIDN'T WANT WALLACE'S SON TO BECOME CHIEF EXECUTIVE A SPOKESMAN FOR THE FAMILY'S HOLDING COMPANY SAID FRIDAY THAT ALL PARTIES AGREE THAT AN EXPEDITED RESOLUTION BY ARBITRATION IS IN THE BEST INTEREST OF THE COMPANIES AND ITS EMPLOYEES MCCAIN FOODS WHICH BEGAN MAKING FROZEN FRENCH FRIES NEAR THE MAINE BORDER IN 1957 IS NOW A MULTINATIONAL COMPANY WITH MORE THAN 2 BILLION IN SALES THE FAMILY FEUD ATTRACTED WIDESPREAD INTEREST IN CANADA FOR A FIRM THAT HAD ALWAYS BEEN TIGHTLIPPED ABOUT ITS AFFAIRS 9309270118 930927 POLITICS & POLICY CLINTON TO USE ONE THEME TO PROMOTE HIS PROGRAMS WASHINGTON PRESIDENT CLINTON HAS DECIDED TO PROMOTE HIS DISPARATE LEGISLATIVE INITIATIVES WITH A SINGLE OVERARCHING THEME THE NEED FOR ECONOMIC SECURITY HE IS EVEN CONSIDERING ADDING A FOURTH INITIATIVE TO HIS ALREADY CROWDED LIST OF PRIORITIES THIS FALL HIS ANTICRIME BILL WHICH HIS AIDES NOW SAY HE WANTS THE HOUSE AND SENATE TO PASS THIS YEAR SENIOR WHITE HOUSE ADVISERS SAY THE PRESIDENT'S PIECEMEAL SALESMANSHIP OF HIS MANY NEW PROGRAMS THIS FALL HAS BEEN A PROBLEM THEY SAY THE LAUNCH OF EACH NEW PROPOSAL HEALTH CARE REORGANIZING GOVERNMENT AND THE NORTH AMERICAN FREE TRADE AGREEMENT HAS BEEN A STANDALONE SUCCESS BUT THEY ACKNOWLEDGE THAT AS A GROUP THE INITIATIVES HAVE BLURRED IN THE PUBLIC MIND AND IN SOME CASES ARE COMPETING FOR EXPOSURE TO REMEDY THIS AIDES WANT TO PACKAGE THE PROPOSALS UNDER THE RUBRIC OF ECONOMIC SECURITY AND JOB GROWTH THE WHITE HOUSE IS NOW SEARCHING FOR AN APPROPRIATE VENUE FOR THE PRESIDENT TO DELIVER A SPEECH THAT MAKES THE POINT AIDES ESPECIALLY WANT TO BOLSTER THE CAUSE OF THE TROUBLED FREETRADE PLAN BY CONNECTING IT TO THE HEALTHCARE PLAN 9309270117 930927 TECHNOLOGY CALIFORNIA COURT REFUSES TO HEAR APPEAL OF SYNTEX THE CALIFORNIA STATE SUPREME COURT REFUSED TO HEAR AN APPEAL BY SYNTEX CORP LETTING STAND A 36 MILLION AWARD WHICH LOWER STATE COURTS ORDERED THE PHARMACEUTICAL COMPANY TO PAY A SENIOR DRUG RESEARCHER WRONGFULLY DISMISSED IN 1987 THE ACTION BY THE STATE'S HIGH COURT ENDS SIX YEARS OF BITTER LITIGATION THAT BEGAN IN 1987 OVER AN ULCER DRUG SYNTEX BASED IN PALO ALTO CALIF SAID ON FRIDAY THAT WHILE IT DISAGREES WITH THE DECISION IT WON'T PURSUE FURTHER APPEALS I'M ABSOLUTELY DELIGHTED SAID GABRIEL GARAY THE FORMER SYNTEX RESEARCHER DR GARAY WHO HOLDS A DOCTORATE IN PHARMACOLOGY HAD CHARGED IN COURT THAT THE COMPANY FORCED HIM OUT IN 1987 AFTER HE VOICED CONCERNS ABOUT POSSIBLE SIDE EFFECTS OF AN ULCER COMPOUND HE HAD INVENTED CALLED ENPROSTIL SYNTEX DENIED THE CHARGE CHARACTERIZING DR GARAY AS A DISGRUNTLED EMPLOYEE WHO STYLED HIMSELF A WHISTLEBLOWER AND WHO SUED THE COMPANY AFTER HE WAS PASSED OVER FOR A PROMOTION A STATE SUPERIOR COURT JURY IN SAN JOSE CALIF SIDED WITH DR GARAY IN 1990 INITIALLY AWARDING HIM 175 MILLION AN AMOUNT THE TRIAL COURT JUDGE FOUND EXCESSIVE AND REDUCED TO 36 MILLION SYNTEX APPEALED BUT THE STATE COURT OF APPEALS UPHELD THE JURY VERDICT THE COMPANY THEN PETITIONED THE STATE SUPREME COURT TO REVIEW THE CASE BUT THE HIGH COURT DENIED THE PETITION ON SEPT 16 9309270116 930927 TWO STOCK EXCHANGES DROP PLAN FOR OFFICE BUILDING NEW YORK THE NEW YORK AND AMERICAN STOCK EXCHANGES HAVE DROPPED A PLAN TO BUILD A NEW HEADQUARTERS FOR BOTH EXCHANGES ON A SQUARE BLOCK IN THE HEART OF MANHATTAN'S FINANCIAL DISTRICT THE PLAN WHICH CALLED FOR A LARGE OFFICE TOWER ABOVE THE TRADING FLOORS FELL VICTIM TO THE CONTINUED WEAKNESS OF THE LOWER MANHATTAN OFFICE MARKET IT JUST DOESN'T MAKE ANY ECONOMIC SENSE SAID ONE REAL ESTATE EXECUTIVE WHO WAS TOLD OF THE CANCELLATION BY A CITY OFFICIAL FROM A COST STANDPOINT YOU JUST CAN'T JUSTIFY BUILDING A BRANDNEW BUILDING WITH SPECULATIVE OFFICE SPACE A SPOKESMAN FOR THE NEW YORK STOCK EXCHANGE DECLINED TO COMMENT JP MORGAN & CO ORIGINALLY PROPOSED THE PROJECT WHICH WOULD HAVE BEEN LOCATED AT THE CORNER OF WALL AND BROAD STREETS ON THE SITE OF MORGAN'S FORMER HEADQUARTERS BUILDING THE DEVELOPMENT TEAM WAS SAID TO INCLUDE HINES INTERESTS AND RUDIN MANAGEMENT CO THE NEW YORK FINANCIAL DISTRICT HAS BEEN LOSING TENANTS STEADILY TO MORE MODERN BUILDINGS ELSEWHERE IN MANHATTAN AND THE EXCHANGE PROJECT WAS SEEN AS A POSSIBLE WAY TO STABILIZE THE AREA 9309270115 930927 AMERICAN WASTE SERVICES INC WARREN OHIO AMERICAN WASTE SERVICES INC SAID CLEVELAND WON'T RENEW ITS MUNICIPAL WASTE TRANSPORTATION AND DISPOSAL CONTRACT WITH AMERICAN WASTE UNDER TERMS OF THE CONTRACT WHICH EXPIRES OCT 21 AMERICAN WASTE HAULS 900 TONS OF MUNICIPAL WASTE EACH DAY IN A STATEMENT AMERICAN WASTE SAID IT IS REVIEWING ITS LEGAL RIGHTS BECAUSE IT BELIEVES THE CITY HAS ACTED IMPROPERLY COMPANY AND CITY OFFICIALS COULDN'T BE REACHED TO COMMENT IT'S UNCLEAR HOW MUCH THE CONTRACT IS WORTH TO AMERICAN WASTE THE COMPANY SAID IT IS PURSUING ADDITIONAL BUSINESS TO REPLACE THE LOST BUSINESS 9309270114 930913 REVIEW & OUTLOOK EDITORIAL WHY FREE TRADE THE AIR IS THICK WITH HYPERBOLE INVENTED STATISTICS AND INSULTS TO THE OTHER GUY'S MOTHER CONGRESS MUST BE GEARING UP TO DEBATE NAFTA PERHAPS BEFORE WE GET IN TOO DEEP IT WOULD BE HELPFUL TO TUNE OUT THE DEMAGOGUERY AND LISTEN TO WHAT LEVELER HEADS SAY ON THE CENTRAL ISSUE HERE FREE TRADE THE FIRST LEVEL HEAD RONALD REAGAN DISCUSSES NAFTA NEARBY SEE RELATED ARTICLE TEAR DOWN THE TRADE WALL WSJ SEPT 13 1993 WE'D LIKE TO TALK ABOUT ADAM SMITH AND DAVID RICARDO THE GREAT ECONOMISTS WHO LAID THE GROUNDWORK FOR OUR UNDERSTANDING OF THE WEST'S SPECTACULAR RISE TO PROSPERITY MR RICARDO WAS A JEWISH STOCKBROKER WHO MARRIED A QUAKER MADE A FORTUNE IN THE STOCK MARKET AND RETIRED YOUNG TO THINK ABOUT ECONOMICS MR SMITH THE AUTHOR OF THE WEALTH OF NATIONS NEEDS NO INTRODUCTION MESSRS SMITH AND RICARDO FIRST SKETCHED OUT THE IDEA THAT 200 YEARS LATER REMAINS AN ARTICLE OF FAITH AMONG ECONOMISTS THE IDEA IS CALLED COMPARATIVE ADVANTAGE IT SAYS LET US EACH SPECIALIZE IN THE PRODUCTION OF WHAT WE'RE GOOD AT AND THEN TRADE THE FRUITS OF OUR LABOR CONSIDER JOE SIXPACK WHO MAKES HIS LIVING FIXING CARS WITH THE MONEY HE EARNS HE PAYS OTHER PEOPLE TO GROW HIS FOOD ASSEMBLE HIS REFRIGERATOR AND PROGRAM HIS GAMEBOY NOBODY WOULD ADVISE MR SIXPACK TO KNOCK OFF EARLY AT THE AUTO SHOP AND GROW HIS OWN CORN HE CAN ENJOY MORE OF EVERYTHING BY FIXING MORE CARS WHICH IS HIS COMPARATIVE ADVANTAGE NOTICE THAT IT DOESN'T MATTER AT ALL TO MR SIXPACK THAT HIS GAMEBOY WAS PROGRAMMED IN JAPAN AND HIS FRIJOLES WERE GROWN BY A MEXICAN ADAM SMITH PUT IT THIS WAY IF A FOREIGN COUNTRY CAN SUPPLY US WITH A COMMODITY CHEAPER THAN WE OURSELVES CAN MAKE IT BETTER BUY IT OF THEM WITH SOME PART OF THE PRODUCE OF OUR OWN INDUSTRY EMPLOYED IN A WAY IN WHICH WE HAVE SOME ADVANTAGE RICHES HAVE ALWAYS COME TO THOSE NATIONS THAT FOLLOW THIS ADVICE IN THEIR TIME THE PHOENICIAN BRITISH AND AMERICAN COMMERCIAL EMPIRES ALL PROSPERED BY DRAWING DIVERSE PEOPLE AND REGIONS INTO TRADING RELATIONS BASED ON COMPARATIVE ADVANTAGE MR RICARDO'S FAMOUS AND IMPORTANT CRUSADE WAS FOR THE REPEAL OF BRITAIN'S CORN LAWS THESE BARRIERS TO AMERICAN GRAIN ONLY KEPT FOOD PRICES HIGH AND FUNNELED MONEY INTO THE POCKETS OF BRITAIN'S LANDED SNOBS ONCE THE CORN LAWS WERE REPEALED TRANSATLANTIC TRADE TOOK OFF THAT ENRICHED BOTH AMERICA'S MUDDYBOOTED YEOMAN AND BRITAIN'S EXPANDING INDUSTRIAL CLASSES AGAIN COMPARATIVE ADVANTAGE WORKED WE'VE ALSO TESTED THE THEORY IN REVERSE CONGRESS KNOCKED THE WORLD TRADING SYSTEM OVER THE HEAD WITH THE SMOOT HAWLEY TARIFFS OF 1930 AND TRADE PROMPTLY DRIED UP AMERICAN LIVING STANDARDS FELL INTO THE STAGNANT LAGOON CALLED THE GREAT DEPRESSION TODAY WE HAVE ROSS PEROT ANOTHER AGE GOT ITS APHORISMS FROM BEN FRANKLIN WHO TENDED TO LOOK FORWARD THE FOUNDING FATHER SAID NO COUNTRY RUINED ITSELF THROUGH TRADE THIS IS WHERE MR PEROT TRIPS UP UNDER MR PEROT'S THEORY OF THE GIANT SUCKING NOISE SOMEHOW AMERICA CAN BE A LOSER BY AVAILING ITSELF OF MEXICO'S COMPARATIVE ADVANTAGE IN CHEAPER LABOR MR PEROT DOESN'T GO ON TO STATE THAT BY THAT LOGIC MEXICO WOULD BE A LOSER BY AVAILING ITSELF OF AMERICA'S TROVE OF SKILLS AND HIGHLY DEVELOPED PERSONAL TALENTS WHETHER THE SOFTWARE ENGINEERING PROWESS OF MICROSOFT OR THE MANUFACTURING EXCELLENCE OF DETROIT DIESEL UNDER A MORE ACCURATE REPRESENTATION OF THE TWO NATIONS' ECONOMIC RELATIONSHIP BOTH GET TO TRADE UP TO BETTER JOBS MORE MEXICANS WOULD HAVE THE OPTION OF QUITTING THEIR FARMS AND TAKING UP WORK IN FACTORIES AMERICANS COULD UNBURDEN THEMSELVES OF GRUNT JOBS IN FACTORIES IN FAVOR OF JOBS THAT REWARD TRAINING AND CREATIVITY IF THAT'S WHAT NAFTA ACCOMPLISHES NAFTA IS ONLY DOING ITS JOB OF COURSE THE VERY IDEA OF PROGRESS IS ANATHEMA TO PEOPLE UNABLE TO RECOGNIZE THAT THE WORLD CHANGES INEVITABLY INDUSTRIAL PROGRESS TENDS TO DISCOMBOBULATE THESE PEOPLE AND THEY CALL IN THE POLITICIANS TO ORDER THE WORLD TO STOP CHANGING SHOULD WE REALLY STOP THE WHOLE COUNTRY'S PROGRESS SO THAT A HANDFUL CAN RUN IN PLACE FOREVER PROTECTIONISM IS A CONSPIRACY OF THE FEW AGAINST THE MANY HAVING MADE THE THEORETICAL CASE FOR FREE TRADE IT SHOULD BE POINTED OUT THAT NAFTA'S REAL IMPACT ON OUR HUGE ECONOMY WILL BE RELATIVELY SMALL THERE'LL BE NO GIANT SUCKING SOUND INDEED THE TREND THESE DAYS IS FOR US COMPANIES ALONG WITH THE BMWS AND DAIMLER BENZES OF THE WORLD TO LOCATE THEIR NEW PLANTS RIGHT HERE BECAUSE OF OUR HIGHLY PRODUCTIVE WORK FORCE AND DYNAMIC CONSUMER MARKET THE MESSAGE THAT A NAFTA DEFEAT WOULD SEND INTO THE WORLD SHOULD WORRY SERIOUS PEOPLE THE UNITED STATES HAS NURTURED AND DEFENDED AN OPEN TRADING SYSTEM FOR 50 YEARS AND NOW EVERYBODY FROM BEIJING TO BOGOTA WANTS TO JOIN IT WOULD BE AN ABSURD TRAGEDY IF THE UNITED STATES CHOSE THE DAWN OF THE 21ST CENTURY TO CONCLUDE THAT ITS BEST ALTERNATIVE TO THE PROVEN THEORY OF FREE TRADE WAS XENOPHOBIA AND ISOLATION SEE RELATED LETTER LETTERS TO THE EDITOR SONGS OF OPEN TRADE WHILE AMERICA SLEEPS WSJ SEPT 27 1993 9309130069 YY93 MM09 9309270113 930927 TORO ASSICURAZIONI PRETAX PROFIT MILAN ITALIAN INSURANCE GROUP TORO ASSICURAZIONI SPA SAID CONSOLIDATED PRETAX PROFIT IN THE FIRST HALF ROSE 53 TO 924 BILLION LIRE 581 MILLION FROM THE YEAREARLIER PERIOD'S 605 BILLION LIRE 9309270111 930927 BUSINESS BRIEFS TRACOR INC'S VITRO CORP UNIT RECEIVED A ONEYEAR 125 MILLION CONTRACT FROM THE US NAVAL SEA LOGISTICS CENTER DETACHMENT TO PROVIDE SUPPORT FOR INSTALLING COMBAT SYSTEMS TRAINING EQUIPMENT IN US NAVY SCHOOLS CORE INDUSTRIES INC SOLD DUAL MANUFACTURING CO A FARMEQUIPMENT DIVISION TO WOODS EQUIPMENT CO OREGON ILL FOR AN UNDISCLOSED AMOUNT GENERAL ELECTRIC CO SAID THAT UNDER ITS LIGHTING JOINT VENTURE WITH HITACHI LTD ALL LIGHT BULBS MADE BY EITHER COMPANY AND SOLD IN JAPAN WILL CARRY THE GE/HITACHI BRAND NAME STARTING OCT 1 LUXCEL GROUP INC ACQUIRED 50 OF THE OUTSTANDING CAPITAL STOCK OF MARIGA COMMUNICATIONS CORP FOR 500000 AND 100000 SHARES OF LUXCEL COMMON STOCK HOOPER HOLMES INC PURCHASED THE STOCK OF LIFEDATA MEDICAL SERVICES INC FROM COMPUCHEM CORP FOR AN UNDISCLOSED AMOUNT RPM INC WILL ACQUIRE STONHARD INC A MAKER OF COMMERCIAL AND INDUSTRIAL POLYMER FLOORING IN A STOCK SWAP TERMS WEREN'T DISCLOSED FIFTH THIRD BANCORP TERMINATED ITS AGREEMENT TO ACQUIRE SHELBY COUNTY BANCORP SHELBYVILLE IND FOR 65 MILLION CITING ENVIRONMENTAL ISSUES 9309270110 930927 ECONOMY FED AT A VOTE IN AUGUST BACKED OFF THREEMONTH PUSH FOR HIGHER RATES BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL RESERVE DISCLOSED THAT POLICY MAKERS AT THEIR AUGUST MEETING UNANIMOUSLY ABANDONED THEIR THREEMONTHLONG TILT TOWARDS HIGHER INTEREST RATES MAKING EXPLICIT THAT FED POLICY IS ON HOLD UNTIL THE DIRECTION OF THE ECONOMY BECOMES CLEARER WHILE ECONOMIC GROWTH DID NOT SEEM PARTICULARLY ROBUST NEITHER WAS IT CLEAR THAT A DISINFLATIONARY TREND HAD BEEN REESTABLISHED THE FED SAID IN A SUMMARY OF THE MEETING THAT WAS RELEASED FRIDAY AFTER THE CUSTOMARY SIXWEEK LAG STILL THE SUMMARY NOTED THAT MANY FED POLICY MAKERS HAVE CONCLUDED THAT MONETARY POLICY PROBABLY WOULD HAVE TO MOVE IN THE DIRECTION OF RESTRAINT AT SOME POINT TO RESIST ANY INCIPIENT TENDENCY FOR INFLATIONARY PRESSURES TO INTENSIFY THE KEY QUESTION IS WHEN THE WHITE HOUSE CONVINCED THAT THE ECONOMY IS MORE LIKELY TO SUFFER FROM SLOW GROWTH THAN INFLATION IS EAGER FOR THE FED TO KEEP INTEREST RATES LOW AND HAS BEEN CAREFUL TO AVOID ANY CONFRONTATIONS WITH THE INDEPENDENTMINDED CENTRAL BANK PRESIDENT CLINTON IN A LETTER RELEASED FRIDAY SAID HE ISN'T INCLINED TO GO ALONG WITH A PROPOSAL BY HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS THAT THE LAW BE CHANGED SO THAT MR CLINTON CAN APPOINT THE PRESIDENTS OF THE FED'S DISTRICT BANKS THE PRESIDENT APPOINTS THE SEVEN GOVERNORS ON THE RESERVE BOARD IN WASHINGTON BUT THE HEADS OF THE DISTRICT BANKS ARE PICKED BY THEIR PRIVATESECTOR BOARDS OF DIRECTORS SUBJECT TO THE BOARD'S APPROVAL CHANGING THE WAY THE BANK PRESIDENTS ARE ELECTED AT THIS TIME RUNS THE RISK OF UNDERMINING MARKET CONFIDENCE IN THE FED MR CLINTON WROTE REP GONZALEZ HE SAID HE IS DISINCLINED TO SEEK ANY CHANGE IN THE LAW GOVERNING THE FED LARGELY BECAUSE OF A GENERAL FEELING THAT THE SYSTEM IS FUNCTIONING WELL AND DOES NOT NEED AN OVERHAUL JUST NOW THE FED'S POLICYMAKING OPEN MARKET COMMITTEE INCLUDES ALL SEVEN GOVERNORS THE PRESIDENT OF THE NEW YORK FED AND FOUR OF THE 11 OTHER DISTRICTBANK PRESIDENTS SERVING IN ROTATION AT THE END OF EACH CLOSEDDOOR MEETING THE COMMITTEE VOTES WHETHER TO MAKE ANY IMMEDIATE CHANGE IN SHORTTERM INTEREST RATES AND WHETHER TO LEAN TOWARD RAISING OR CUTTING RATES IN THE COMING WEEKS THE FED HASN'T ALTERED RATES FOR MORE THAN A YEAR WORRIED ABOUT SIGNS THAT INFLATION WAS ACCELERATING THE COMMITTEE SWITCHED IN MAY FROM A NEUTRAL STANCE TO ONE FAVORING HIGHER INTEREST RATES IN JULY THE COMMITTEE AGREED THAT AN INCREASE IN RATES WAS UNLIKELY BUT VOTED TO LEAVE ITS FORMAL STANCE IN PLACE TO AVOID CONVEYING THE IMPRESSION THAT IT WAS GROWING MORE WORRIED ABOUT THE VITALITY OF THE RECOVERY OR LESS COMMITTED TO FIGHTING INFLATION BUT AT ITS AUG 17 MEETING THE COMMITTEE CONCLUDED THAT IT WAS LESS LIKELY THAN IN MAY OR JULY THAT IT WOULD HAVE TO RAISE RATES BEFORE ITS NEXT MEETING FINANCIAL MARKETS DIDN'T RESPOND STRONGLY TO THE FRIDAY AFTERNOON DISCLOSURE BUT SHORTTERM AND LONGTERM INTEREST RATES BOTH FELL SLIGHTLY UNDERMINING THE ARGUMENT THAT IS SOMETIMES MADE BY FED OFFICIALS THAT THE BOND MARKET WOULD WELCOME A FED MOVE TO RAISE INTEREST RATES THE COMMITTEE MET AGAIN LAST WEEK THE FED WON'T DISCLOSE THE OUTCOME OF THAT MEETING FOR ANOTHER SIX WEEKS BUT NONE OF THE RECENT ECONOMIC DATA SUGGEST THAT THE FED WOULD HAVE HAD ANY REASON TO ALTER ITS NEUTRAL STANCE 9309270109 930927 INTERNATIONAL IN ANGOLA ONLY THE SCHEMING SURVIVE BLACK MARKET THRIVES IN ECONOMY CRIPPLED BY TURMOIL BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL LUANDA ANGOLA ENGINEER JOAO MANUEL BATISTA WANTS TO BUY SOME DRIED FISH SO HE GOES TO A HARDCURRENCY SHOP HE HAS ACCESS TO THROUGH HIS STATE COMPANY JOB AND BUYS A CASE OF BEER THEN HE SELLS THE BEER ON THE SIDEWALK FOR NOVO KWANZAS THE ANGOLAN CURRENCY AT THEIR BLACKMARKET RATE 13 TIMES THE OFFICIAL RATE THEN HE BUYS THE FISH PHYSICAL EDUCATION TEACHER ELSA VIEIRA HASN'T HAD RUNNING WATER IN HER APARTMENT FOR 16 YEARS SO SHE INSTALLED A 6000LITER 1560 GALLONS WATER TANK IN THE BASEMENT THAT'S REFILLED EVERY TWO WEEKS THERE ARE TWO WAYS TO GET WATER SHE SAYS EITHER YOU HAVE FRIENDS IN GOOD POSITIONS OR YOU HAVE MONEY LUCKILY I HAD FRIENDS THAT'S DAILY LIFE IN ANGOLA THERE'S NO OTHER WAY SAYS MR BATISTA YOU HAVE TO HAVE AN ESQUEMA' TO SURVIVE ESQUEMA MEANS SCHEME IN PORTUGUESE NOBODY SURVIVES ON HIS WAGES HERE SAYS ECONOMIST CARLOS MANUEL DE SAO VICENTE IF YOU'RE HONEST YOU SURVIVE THROUGH BARTER OR MOONLIGHTING OTHERS LIVE FROM CORRUPTION SPECULATION OR ROBBERY WITH ITS OIL DIAMONDS AND FERTILE FARMLAND ANGOLA COULD BE ONE OF THE RICHEST COUNTRIES IN AFRICA BUT TWO DECADES OF TURMOIL FEATURING AN INDEPENDENCE WAR FROM PORTUGAL 16 YEARS OF COMMUNISM AND TWO CIVIL WARS INCLUDING ONE NOW THAT THE UNITED NATIONS SAYS IS THE DEADLIEST ON EARTH HAVE BROUGHT THE ECONOMY TO THE BRINK OF COLLAPSE INDUSTRY IS PARALYZED SHOPS ARE ALMOST EMPTY AND INFLATION IS RUNNING AT 1400 A YEAR MEANWHILE EVERYTHING THAT'S SEEMINGLY LACKING IS AVAILABLE ON THE BLACK MARKET BUT AT A STEEP PRICE A STROLL THROUGH TWO MARKETS SHOWS THE CURIOUS RULES OF ANGOLA'S ECONOMY COMBINING THE WORST OF ALL WORLDS COMMUNISM A WAR ECONOMY AND FREEWHEELING CAPITALISM AT THE JUMBO SUPERMARKET ON A SATURDAY MORNING THE SCENE SEEMS STRAIGHT OUT OF COMMUNIST EASTERN EUROPE THERE'S NO MEAT ASKED WHEN HE'S EXPECTING SOME A SALESMAN REPLIES MAYBE IN OCTOBER THERE'S BEEN NO BUTTER FOR TWO MONTHS THE FRUIT AND VEGETABLE SECTION IS BARE A FEW BANANAS PEPPERS TOMATOES POTATOES CUCUMBERS AND ONE MELON OUR INDUSTRY AND AGRICULTURE ARE COMPLETELY PARALYZED BY WAR SO WE DEPEND ALMOST ENTIRELY ON IMPORTS SAYS EURICO PIRES A MEMBER OF THE MANAGEMENT BOARD OF ANGOY FRANCAS THE PORTUGUESE COMPANY THAT RUNS JUMBO TO IMPORT WE NEED FOREIGN EXCHANGE AND THE COUNTRY DOESN'T HAVE ANY NOW OVER TO ROQUE SANTEIRO ON THE OUTSKIRTS OF LUANDA THE CAPITAL THIS HUGE OUTDOOR MARKET LOOKS AND SMELLS AS IF IT WERE SET ATOP A GARBAGE HEAP BUT IF THERE WERE MUZAK SHELVES AND AIR CONDITIONING YOU'D THINK YOU WERE IN THE WORLD'S LARGEST SUPERMARKET SAYS SHAWN MCCORMICK AN AFRICA EXPERT AT WASHINGTON'S CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES YOU CAN BUY LITERALLY EVERYTHING THERE SOME OF THE GOODS ARE IMPORTED LEGALLY BY PRIVATE BUSINESSMEN OTHERS ARE STOLEN AND RESOLD STILL OTHERS ARE DIVERTED FROM IMPORTS AUTHORIZED AT THE OFFICIAL EXCHANGE RATE AND SOLD AT BLACKMARKET RATES FOR HIGH PROFIT WHETHER IT'S WINE FROM PORTUGAL COCOA BUTTER FROM THE US OR A TELEVISION SET FROM TAIWAN THE PRICES ARE AT BLACKMARKET RATES BUTTER FROM HOLLAND IS AVAILABLE BUT FOR 150000 NOVO KWANZAS A PACKAGE 288 AT THE OFFICIAL RATE AND 3750 AT THE BLACKMARKET RATE A MONTHLY MINIMUM WAGE IS 120000 NOVO KWANZAS TO BUY ANYTHING ANGOLANS HAVE TO TURN THEIR WORTHLESS WAGES INTO SOMETHING MARKETABLE ENTER THE ESQUEMA MOST OF AN AVERAGE ANGOLAN'S EXISTENCE IS QUID PRO QUO SAYS DAVID CHAMBERS MANAGING DIRECTOR OF THE ANGOLAN UNIT OF BRITISH TRADING COMPANY HULL BLYTH LUCKY WORKERS ARE PAID PARTLY IN GOODS BREWERIES PAY ABOUT 10 A MONTH BUT WORKERS ALSO GET THREE FREE 24BOTTLE CASES OF BEER THREE MORE AT BARGAIN PRICES AND MORE FOR BIRTHDAYS OR OTHER EVENTS BEER IS ALMOST A PARALLEL CURRENCY IT'S A VERY LIQUID ECONOMY JOKES MR CHAMBERS OUR EMPLOYEES LIVE FROM THAT BEER NOT THEIR SALARIES SAYS PASCOAL NETO MANAGING DIRECTOR OF THE NOCAL BREWERY OTHERS HAVE ACCESS TO COMPANY COMMISSARIES THESE SHOPS SELL IMPORTED GOODS AT PRICES SET ACCORDING TO THE OFFICIAL EXCHANGE RATE EMPLOYEES ARE ALLOWED TO BUY A FIXED AMOUNT PER MONTH ACCORDING TO THEIR SALARIES BY BUYING UP TO THEIR LIMIT AND RESELLING SOMETIMES RIGHT IN FRONT OF THE COMMISSARY WORKERS MULTIPLY THEIR INCOME AT FRENCH OIL COMPANY SOCIETE NATIONALE ELF AQUITAINE'S SHOP A REPLICA OF A PARIS SUPERMARKET WHERE ROQUEFORT SAUCISSON AND DOM PERIGNON CHAMPAGNE ARE AVAILABLE A PACKAGE OF 12 YOGURTS SELLS FOR 30619 NOVO KWANZAS ON THE STREET IT SELLS FOR 420000 NOVO KWANZAS INSIDE A KILO 22 POUNDS OF APPLES IS PRICED AT 7433 NOVO KWANZAS OUTSIDE APPLES RETAIL FOR 20000 NOVO KWANZAS APIECE TO PREVENT A RUN ON THE MOST POPULAR SIDEWALK ITEMS THE SHOP LIMITS PURCHASES OF SUCH BASIC FOODSTUFFS AS MILK OIL AND FLOUR ANGOLANS WITHOUT ACCESS TO COMMISSARIES RESORT TO OTHER SCHEMES SOME SIMPLY SCRAMBLE BUYING WHATEVER THEY CAN TRYING TO RESELL IT FOR A BIT MORE ELSEWHERE OTHERS STEAL FROM THEIR WORKPLACE YOU CAN'T BE VERY HONEST IN THIS COUNTRY EXPLAINS A CIVIL SERVANT WHO SAYS SHE SURVIVES BECAUSE HER ENGINEER HUSB HAS ACCESS TO BUILDING MATERIALS THEN THERE'S CORRUPTION BRIBES HAVE TO BE GIVEN JUST TO DEPOSIT MONEY IN THE BANK COMPANIES HAVE TO SCHEME TOO THE HEAD OF ONE STATECONTROLLED COMPANY WHO ASKED NOT TO BE NAMED SAYS A CASE OF HIS PRODUCT SELLS FOR 55000 NOVO KWANZAS BUT BUYERS MUST PAY AN ADDITIONAL 165000 NOVO KWANZAS UNDER THE TABLE I ASSUME THE RISK AND IF THEY CATCH ME I HAVE AN EXPLANATION IT'S BETTER TO KEEP THE COMPANY RUNNING THAN BE MORAL HE SAYS FOREIGN COMPANIES TRY TO INSULATE THEIR STAFFS FROM ANGOLA TEXACO HAS A WATER TRUCK THAT SUPPLIES THE HOMES OF ITS EXPATRIATE STAFF BRAZIL'S CONSTRUCTORA NORBERTO ODEBRECHT WHICH WAS BUILDING A HYDROELECTRIC PLANT AND RAN A DIAMOND COMPANY BOTH OF WHICH HAVE BEEN PUT ON HOLD BY THE WAR HOUSES ITS STAFF AT VILA DO GAMEK WHICH HAS A GENERATOR WELL SCHOOL DISCONTINUED BECAUSE FAMILIES HAVE BEEN EVACUATED SUPERMARKET MESS HALL BARBER SHOP VIDEO RENTAL OUTLET SPORTS FACILITIES AND EVEN ITS OWN MAYOR HERE EVERYTHING FUNCTIONS SAYS ODEBRECHT'S LOCAL HEAD OTACILIO DE CARVALHO SOME ANGOLANS SEEM TO PREFER THIS OASIS TO THE REAL ANGOLA THE PRIME MINISTER HAS A HOUSE INSIDE THE COMPOUND OTHER TOP OFFICIALS HAVE MORE RADICAL HOUSING SOLUTIONS ASKED WHY HIS FAMILY ISN'T IN ANGOLA DEPUTY FOREIGN MINISTER GEORGE CHIKOTI WHO LIVED IN THE US REPLIES MY KIDS ARE USED TO HAVING A TV THAT WORKS AND RUNNING WATER SO UNTIL THINGS STABILIZE THEY'RE IN THE US 9309270108 930927 WHO'S NEWS AMERICAN MANAGEMENT NAMES BRANDS AS CEO ARLINGTON VA AMERICAN MANAGEMENT SYSTEMS INC NAMED PAUL A BRANDS CHIEF EXECUTIVE OFFICER COMPLETING A TOP MANAGEMENT REORGANIZATION THAT BEGAN A YEAR AGO MR BRANDS 51 YEARS OLD SUCCEEDS CHARLES O ROSSOTTI WHO WILL REMAIN AS CHAIRMAN OF AMERICAN MANAGEMENT SYSTEMS WHICH PROVIDES ASSISTANCE IN HELPING COMPANIES IMPROVE THEIR USE OF INFORMATION TECHNOLOGY WHAT WE HAVE DONE THROUGH THIS TRANSITION IS FREE UP A LARGE CHUNK OF CHARLES'S TIME TO SPEND WITH SOME OF OUR KEY CLIENTS AS WELL AS DEVELOP RELATIONSHIPS WITH OTHER LARGE CLIENTS MR BRANDS SAID MR BRANDS WHO IS ALSO A VICE CHAIRMAN ALONG WITH PHILIP M GIUNTINI 47 THE COMPANY'S PRESIDENT WILL CONCENTRATE ON DAYTODAY OPERATIONS MR ROSSOTTI 52 WILL BE JOINED BY PATRICK GROSS 49 ALSO A VICE CHAIRMAN IN MAINTAINING RELATIONSHIPS WITH LARGER CLIENTS AND DEVELOPING RELATIONSHIPS WITH OTHER CLIENTS AS CEO MR BRANDS PLANS TO INCLUDE SENIOR MANAGERS IN MORE OF THE OPERATIONAL PLANNING THE COMPANY HAS FORMED AN OPERATING GROUP AND A MANAGEMENT POLICY GROUP TO CONTRIBUTE TO MR BRANDS OPERATIONAL EFFORTS ONE OF THE KEY THINGS FOR US IS THAT INFORMATION TECHNOLOGY ACTIVITIES ARE GROWING ESPECIALLY AMONG BUSINESS END USERS MR BRANDS SAID THAT GROWTH PLAYS TO OUR STRENGTHS AND WE SEE THE POSSIBILITIES OF A LOT MORE WORK FOR US IN THAT AREA AMERICAN MANAGEMENT SYSTEMS HAS ABOUT 375 MILLION IN ANNUAL SALES 9309270107 930927 T/SF COMMUNICATIONS SAYS CHANGES IN PACT WILL RESULT IN LOSS TULSA OKLA T/SF COMMUNICATIONS CORP SAID CHANGES IN A PREVIOUSLY ANNOUNCED AGREEMENT TO SELL TWO SHOPPERNEWSPAPERS WOULD RESULT IN A NET LOSS OF ABOUT 6 MILLION OR 114 A SHARE FOR THE THIRD QUARTER AS A RESULT TRIBUNE/SWABFOX COS INC WHICH OWNS A 72 STAKE IN T/SF SAID IT WOULD RECORD A THIRDQUARTER LOSS OF AT LEAST 48 MILLION OR ABOUT 16 CENTS A SHARE TRIBUNE/SWAB FOX WHICH SAID IT ALSO IS CONSIDERING CERTAIN REALESTATE WRITEDOWNS IN THE PERIOD SAID THE LOSS COULD BE SUBSTANTIALLY LARGER A YEAR EARLIER T/SF REPORTED NET INCOME OF 139 MILLION OR 263 A SHARE ON REVENUE OF 262 MILLION AFTER A ONETIME PRETAX GAIN OF 244 MILLION TRIBUNE/SWABFOX HAD PROFIT OF 95 MILLION OR 29 CENTS A SHARE ON REVENUE OF 265 MILLION BOTH COMPANIES ARE PUBLISHING AND INFORMATION CONCERNS ON AUG 27 T/SF SAID IT HAD ENTERED INTO AN AGREEMENT TO SELL TWO SHOPPERS TO DICKSON MEDIA A PUBLISHING CONCERN BASED IN CHARLOTTESVILLE VA FOR 8 MILLION IN CASH FOR OPERATIONS AND 5 MILLION OVER FIVE YEARS FOR A NONCOMPETE COVENANT FROM T/SF T/SF SAID DICKSON NOW INTENDS TO BUY ONE SHOPPER FOR 47 MILLION IN CASH AND 14 MILLION FOR THE COVENANT THE COMPANY SAID IT WOULD TAKE A 3 MILLION PRETAX LOSS ON THE SALE AND WRITE DOWN ITS INVESTMENT IN THE REMAINING SHOPPER DURING THE THIRD QUARTER 9309270105 930927 SMALL STOCK FOCUS IPOS' SUCCESS SPURS OTHERS TO QUEUE UP BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT SEEMS AS IF ALMOST ANYTHING SOLD ON MAIN STREET CAN BECOME A HOT STOCK ON WALL STREET THESE DAYS A SLEW OF NEW STOCKS HIT THE MARKET LAST WEEK AND MANY OF THEM ROCKETED UP 50 OR MORE IN THEIR FIRST TRADES THAT KIND OF MARKET RESPONSE IS FUELING THE FERVOR AMONG OTHER POTENTIAL ISSUERS IN WHAT HAS BECOME A RED HOT MARKET SO MANY COMPANIES THAT WOULD HAVE NEVER GIVEN A THOUGHT TO GOING PUBLIC A COUPLE YEARS AGO ARE RUNNING TO THE MARKET RIGHT NOW SAYS M WILLIAM BENEDETTO OF NEW YORK INVESTMENT BANK BENEDETTO GARTLAND & GREENE INC IT'S NOT EXACTLY A SPECULATIVE BINGE BUT I HAVE BEEN AS SURPRISED AS ANYONE AT THE THINGS GOING PUBLIC THERE IS TOO MUCH CAPITAL CHASING TOO FEW STOCKS SUMMA FOUR A SUPPLIER OF DISTRIBUTOR SWITCHES FOR NEW TELECOMMUNICATION SERVICES ENDED THE WEEK AT 27 1/4 MORE THAN 60 ABOVE ITS OFFERING PRICE OF 17 THE LEAD MANAGER OF THE OFFERING WAS WESSELS ARNOLD & HENDERSON AND NETMANAGE FINISHED AT 26 1/4 ON FRIDAY MORE THAN 64 ABOVE ITS OFFERING PRICE OF 16 ROBERTSON STEPHENS WAS THE LEAD UNDERWRITER THE ALLURE OF GOING PUBLIC ISN'T HARD TO UNDERSTAND AS LONG AS INVESTORS ARE WILLING TO SNAP UP NEW STOCK OFFERINGS GOING TO THE STOCK MARKET FOR CAPITAL IS A LOT EASIER AND CHEAPER THAN BORROWING FROM BANKS OR VENTURE CAPITALISTS THE PUBLIC IS ONLY LOOKING TO MAKE A 10 RETURN ON ITS INVESTMENT WHICH LOOKS GOOD NEXT TO 3 RETURNS ON CDS MR BENEDETTO SAYS AND THE PUBLIC DOESN'T ASK FOR ANY OPERATING CONTROL OF THE COMPANY A PRIVATE INVESTOR IS GOING TO WANT A 25 TO 30 RATE OF RETURN ON INVESTMENT THAT'S WHY THERE ARE MORE THAN 200 IPOS IN THE PIPELINE FOR THE NEXT MONTH OR SO WITH DOZENS MORE FILED EACH WEEK THIS MARKET CONTINUES TO AMAZE EVERYBODY WITH ITS ABILITY TO ABSORB ALL THE NEW SHARES BEING ADDED TO THE MARKET SAYS ALEXANDER SANDY DAIGNAULT HEAD OF THE EQUITY SYNDICATE GROUP AT ALEX BROWN & SONS IN BALTIMORE A PEA IN THE POD HAD TO LOWER ITS PRICE AND ITS OFFERING AMOUNT AND THE STOCK HAS BEEN WALLOWING DROPPING 1/2 TO 11 3/4 ON FRIDAY THE IRVING TEXAS RETAILER OF MATERNITY CLOTHES OFFERED 1250000 SHARES ON THURSDAY AT 12 THROUGH UNDERWRITERS LED BY ROBERTSON STEPHENS AND NOT EVERY DEAL IS COMING IN ON SCHEDULE THE HUGE NUMBER OF PENDING IPOS IS PARTLY THE RESULT OF THE 80 OR SO DEALS THAT WERE ON THE CALENDAR FOR SEPTEMBER BUT WILL PROBABLY BE LATE AND SPILL OVER INTO OCTOBER SAYS LESLIE FELDMAN AN ANALYST WITH SECURITIES DATA CO I DON'T THINK THIS IS THE KIND OF MARKETPLACE WHERE EVERYTHING CAN GO PUBLIC SAYS MR DAIGNAULT SOME INDUSTRIES ARE WORKING AND SOME AREN'T THE FAVORED SECTORS RIGHT NOW INCLUDE TECHNOLOGY TELECOMMUNICATIONS RETAIL CONSUMERORIENTED ISSUES AND OIL ANALYSTS SAY HEALTH CARE AND BIOTECH ARE STILL OUT IN THE COLD THE SIZZLING MARKET FOR IPOS IS BEING FUELED BY INSTITUTIONAL MONEY MANAGERS LOOKING TO BOOST THEIR ENDOFQUARTER PERFORMANCE ANALYSTS SAY IN AN INCREASINGLY EXPENSIVE MARKET MONEY MANAGERS ARE POUNCING ON IPOS THAT HAVE CATCHY STORIES AND BOTH REVENUE AND EARNINGS GROWTH AS THE MANAGERS OF PENDING IPOS TOUR THE COUNTRY SELLING THEIR STOCK AND THEIR STORIES TO PROFESSIONAL INVESTORS MANY BIG INVESTORS ARE WORKING OVERTIME JUST TO ATTEND THE LUNCH AND BREAKFAST MEETINGS THEY ARE TRYING NOT ONLY TO LEARN DETAILS ABOUT THE STOCK BEING OFFERED BUT ALSO TO GAUGE THE LEVEL OF INTEREST AMONG THEIR COLLEAGUES AND COMPETITORS JUST LAST WEEK BARNES & NOBLE HELD A ROADSHOW LUNCH MEETING IN NEW YORK ATTENDED BY MORE THAN 200 INSTITUTIONAL INVESTORS THE BOOK RETAILER IS SCHEDULED TO OFFER ABOUT 82 MILLION SHARES AT 16 TO 18 EACH THROUGH MORGAN STANLEY THIS WEEK INVESTORS ATTENDING THE MEETING WERE EAGER TO GET THE LATEST DOPE NOT TO MENTION THE FREE GOODIES INCLUDING BOOKS TOTE BAGS AND STARBUCKS COFFEE BEANS STARBUCKS HAS AGREED TO BE THE EXCLUSIVE COFFEE SUPPLIER FOR BARNES & NOBLE'S NEW SUPERSTORES THIS IS GOING TO BE A REALLY HOT OFFERING SAYS CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT COMPANY BALESTRA CAPITAL AND PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER WITH BARNES & NOBLE'S NEW SUPERSTORE CONCEPT MAKING A BIG HIT WITH CONSUMERS THE STOCK LOOKS LIKE A WINNER THIS COMPANY IS GOING TO SELL ON ITS NEW CONCEPT AND YOU COULD SEE THE EXCITEMENT IN THE ROOM THE CROWD ACTUALLY APPLAUDED AFTER THE PRESENTATION ROBERT NATALE A NEWISSUES ANALYST AT STANDARD & POOR'S WHO DIDN'T LOOK FAVORABLY UPON THE STOCK WHEN IT FIRST TRIED TO COME PUBLIC LAST YEAR NOW HAS A BUY RECOMMENDATION ON THE OFFERING THIS DEAL IS DIFFERENT ENOUGH FROM THE FIRST ATTEMPT LAST YEAR TO WARRANT ANOTHER CLOSE LOOK HE SAYS SUPERSTORES NOW ACCOUNT FOR A MUCH LARGER PORTION OF SALES AND MORE OF THEM HAVE BECOME PROFITABLE OF COURSE INDIVIDUAL INVESTORS DON'T GET INVITED TO SUCH LAVISH PRESENTATIONS AND SELDOM CAN GET THEIR HANDS ON SHARES OF NEW STOCKS AT THE INITIAL OFFERING PRICES SO EXPERTS WARN THAT SMALL INVESTORS BE CAREFUL NOT TO BE SWEPT UP BY THE HOOPLA SURROUNDING THE INITIAL OFFER FOR MOST NEW ISSUES INDIVIDUALS DON'T WANT TO BUY RIGHT AFTER IT HITS THE MARKET WARNS MR NATALE WHEN YOU BUY A STOCK ON ITS INITIAL POPUP YOU ARE ADDING TO THE RISK OF AN ALREADY RISKY INVESTMENT HE SAYS ONLY A FEW STOCKS CONTINUE TO CLIMB LONG AFTER THEIR INITIAL WEEK OF TRADING INDEED MANY OF THE RECENT HOT STOCKS HAVE SLIPPED OFF THEIR INITIAL HIGHS HOMETOWN BUFFET FELL 1 1/8 TO 23 ON FRIDAY THE RESTAURANT COMPANY OFFERED ITS SHARES AT 15 ON THURSDAY THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES AND IS NOW BELOW ITS HIGH OF 24 1/2 EVEN THE POPULAR COBRA GOLF FELL 7/8 TO 32 1/8 ON FRIDAY BELOW ITS HIGH OF 36 LAST MONDAY COBRA OFFERED 3250000 SHARES AT 21 THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MR NATALE SAID THE STREAM OF IPOS WILL CONTINUE UNTIL THERE IS A CORRECTION IN THE MARKET RIGHT NOW THERE IS AN ABSENCE OF PAIN IN THE MARKET HE SAYS IF THERE IS ANY CORRECTION IN THE MARKET THESE IPOS ARE GOING TO PLUMMET IN THE MEANTIME IN ADDITION TO BARNES & NOBLE LOOK FOR DETROIT DIESEL A DESIGNER OF HEAVYDUTY DIESEL ENGINES AND PARTS TO HIT THE MARKET THIS WEEK IT'S SCHEDULED TO OFFER 4750000 SHARES AT 16 TO 18 THROUGH UNDERWRITERS LED BY MERRILL LYNCH AND CAPITAL GUARANTY PLANS TO OFFER FIVE MILLION SHARES BETWEEN 18 AND 21 THROUGH MERRILL LYNCH THE RUSSELL 2000 INDEX A MEASURE OF SMALL STOCKS ON THE NASDAQ MARKET AND THE NEW YORK AND AMERICAN STOCK EXCHANGES ROSE 080 OR 032 TO 24874 AUTOIMMUNE LEAPT 2 3/8 TO 9 THE LEXINGTON MASS COMPANY SAID CLINICAL DATA FROM A RECENTLY COMPLETED PHASE II STUDY HAVE DEMONSTRATED THAT ORAL ADMINISTRATION OF TYPE II COLLAGEN CAN BE EFFECTIVE IN PATIENTS WITH SEVERE RHEUMATOID ARTHRITIS THE COMPANY SAID ITS AI200 PRODUCT IS BASED ON THIS FORM OF COLLAGEN HAMBRECHT & QUIST REINSTATED A BUY RECOMMENDATION ON THE STOCK AFTER DOWNGRADING IT TO HOLD IN AUGUST PERRIGO FELL 4 1/2 TO 29 1/4 OPPENHEIMER & CO DOWNGRADED THE STOCK TO MARKET PERFORMER FROM BUY BASED ON THE STOCK'S HIGH PRICE VALUATION ON THURSDAY THE COMPANY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 13 MILLION SHARES OF WHICH ABOUT 85 MILLION SHARES WILL BE OFFERED ON BEHALF OF HILLMAN CO MONACO COACH JUMPED 1 1/4 TO 14 1/4 ON ITS FIRST TRADING DAY THE MOTOR COACH MAKER OFFERED 16 MILLION SHARES AT 13 THROUGH UNDERWRITERS LED BY WILLIAM BLAIR & CO 9309270104 930927 INSURANCE FIRM BLOCKS RUSSIA'S POLITICAL WINDS AMID PRIVATIZATION EFFORTS POLICIES GUARD INVESTORS FROM SUDDEN UPHEAVAL BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL MIDDLEBURY VT RUSSIA IS HOPING TO LURE MORE PRIVATE INVESTMENT FROM THE US WITH A NEW INSURANCE COMPANY DESIGNED TO PROTECT INVESTORS AGAINST THE RISKS OF SUDDEN POLITICAL CHANGES VALERIAN SOBOLEV VICE CHAIRMAN OF RUSSIA'S NEW STATE INVESTMENT CORP SAID THE LONDONBASED INSURANCE COMPANY WILL BEGIN WRITING THE NEW POLITICALRISK POLICIES NEXT MONTH BASED ON 100 MILLION OF PRECIOUS METALS AND JEWELS THAT RUSSIA WILL DEPOSIT IN A SWISS BANK SPEAKING AT A CONFERENCE OF US SPECIALISTS ON FINANCING NEWLY PRIVATIZED VENTURES IN THE NATIONS OF THE FORMER SOVIET UNION MR SOBOLEV SAID THE INSURANCE FUND EXPECTED TO GROW TO 1 BILLION IN CAPITAL IS DESIGNED TO PROTECT OUTSIDE INVESTMENTS AGAINST THE UNPREDICTABILITY OF RUSSIA'S LEGISLATURE THE NEW INSURANCE IS INTENDED TO MINIMIZE THE RISKS RELATED TO POLITICAL UPHEAVAL SUCH AS PRESIDENT YELTSIN'S MOVE LAST WEEK TO DISSOLVE RUSSIA'S PARLIAMENT AND THE LEGISLATURE'S SUBSEQUENT VOTE TO UNSEAT HIM THE INSURANCE ALSO APPLIES TO RETROACTIVE LAWS THAT IMPOSE NEW TAXES ON INVESTMENT PROJECTS MR SOBOLEV EXPLAINED ONE OF THE GOALS OF THE INSURANCE COMPANY IS TO MINIMIZE DAMAGE FOR THE TIME BEING UNTIL OUR LEGISLATURE GETS TO BE MORE STABLE HE ADDED PRESIDENT YELTSIN WHO AUTHORIZED THE NEW INSURANCE VENTURE BY DECREE LAST JUNE HAS CALLED FOR NEW ELECTIONS FOR RUSSIA'S PARLIAMENT IN DECEMBER IN A SOMETIMES EMOTIONAL APPEAL FOR MORE US INVESTMENT IN LARGE RUSSIAN COMPANIES MR SOBOLEV NOTED THAT MANY OF THEM CONTINUE TO PUMP OUT SUBMARINES MISSILES AND COMBAT VEHICLES BECAUSE THERE IS NO MONEY TO FINANCE THEIR CONVERSION TO PEACEFUL PRODUCTS REFERRING TO VOLGOGRAD HIS HOME TOWN MR SOBOLEV SAID THAT VOLGOGRAD TRACTOR FACTORY WHICH PRODUCES ARMORED PERSONNEL CARRIERS WOULD LIKE TO CONVERT TO A LINE OF FARM TRACTORS WHICH ARE BADLY NEEDED SO FAR HOWEVER THERE HAVE BEEN NO SOURCES WILLING TO FINANCE IT WE DON'T SEE ANY AMERICAN BUSINESSMEN MR SOBOLEV COMPLAINED NOTING THAT ENGINEERS FROM FORD MOTOR CO HELPED DESIGN AND BUILD THE PLANT IN 1931 THEY THE AMERICANS WERE NOT AFRAID TO INVEST THEN AND WE HAD A COMMUNIST GOVERNMENT ADDED MR SOBOLEV HE SAID THAT OF 30 JOINT VENTURES WITH WESTERN COMPANIES NOW UNDER WAY IN VOLGOGRAD ONLY ONE INVOLVES A US CONCERN ACCORDING TO OTHER SPEAKERS AT THE CONFERENCE SPONSORED BY THE GEONOMICS INSTITUTE A NONPROFIT RESEARCH FIRM PRIVATIZATION IN RUSSIA HAS GONE SLOWLY BECAUSE OF A COMPLICATED AUCTION PROCESS AND RAMPANT INFLATION WHICH RAPIDLY EATS UP RUBLES INTENDED FOR INVESTMENT SMALL STARTUP COMPANIES DON'T HAVE CAPITAL AND SO THEY JUST FALL APART EXPLAINED VLADIMIR TCHERNOV WHO HEADS A DEVELOPMENT FUND IN THE VOLGOGRAD REGION WHICH HAS A POPULATION OF 24 MILLION VICTOR PAUL AN INVESTMENT OFFICER OF THE INTERNATIONAL FINANCE CORP AN OFFSHOOT OF THE WORLD BANK SAID THE BEST BARGAINS AMONG THE COMPANIES BEING AUCTIONED OFF ARE OFTEN IN LARGER INDUSTRIES WHICH BOAST RUSSIA'S BEST TECHNOLOGY WHILE BARBERSHOPS IN VOLGOGRAD ARE SOMETIMES BID UP TO THE EQUIVALENT OF 150000 THE EQUITY VALUES OF LARGER FIRMS PUT ON THE AUCTION BLOCK ARE OFTEN QUITE LOW HE EXPLAINED BECAUSE BIDDERS ARE UNABLE TO GAUGE THEIR TRUE VALUE ACCORDING TO MR PAUL WHO HAS BEEN INVOLVED IN THE PRIVATIZATION PROCESS IN VOLGOGRAD AND SEVERAL OTHER RUSSIAN CITIES THE SHIFT IS ABOUT 22 COMPLETE OVER 50000 SMALLER COMPANIES HAVE BEEN TURNED PRIVATE BUT SO FAR ONLY ABOUT 3700 LARGER COMPANIES HAVE BEEN INVOLVED THE INTERNATIONAL FINANCE CORP HE SAID HOPES TO EASE THE FINANCING SHORTAGE SOON BY STARTING TWO NEW FUNDS FOR INVESTMENTS IN THE FORMER SOVIET UNION ALTOGETHER IT IS PROVIDING 200 MILLION FOR INVESTMENT IN RUSSIA HE SAID NIKOLAI SHMELIEV AN ECONOMIST AND MEMBER OF RUSSIA'S ACADEMY OF SCIENCES SAID THAT IT TOOK BRITAIN'S FORMER PRIME MINISTER MARGARET THATCHER 10 YEARS TO SELL OFF MONSTER COMPANIALIZED BY THE PREVIOUS LABOR GOVERNMENT FOR RUSSIA THE SAME PROCESS WILL TAKE DECADES HE ADDED OUR MONSTERS ARE MUCH BIGGER THAN THE BRITISH MONSTERS HE SAID 9309270103 930927 US PROPOSES RULES ON COAL MINE DAMAGE WASHINGTON THE INTERIOR DEPARTMENT PROPOSED NEW REGULATIONS REQUIRING COAL PRODUCERS TO REPAIR BUILDINGS DAMAGED WHEN UNDERGROUND MINES SINK OR COLLAPSE THE RULES WHICH ADDRESS ASSORTED PROBLEMS LINKED TO COAL MINE SUBSIDENCE ALSO WOULD REQUIRE OPERATORS TO REPLACE WATER SUPPLIES POLLUTED BY COAL MINE ACTIVITIES THEY WOULD APPLY ONLY TO UNDERGROUND COAL OPERATIONS CONDUCTED AFTER OCT 24 1992 THE PROPOSALS WERE ISSUED UNDER LAST YEAR'S ENERGY POLICY ACT THAT LAW REQUIRED THAT COAL OPERATORS REPAIR NONCOMMERCIAL STRUCTURES DAMAGED BY THEIR ACTIVITIES THE DEPARTMENT'S REGULATIONS WOULD EXTEND THE REQUIREMENT TO COMMERCIAL BUILDINGS AS WELL THE DEPARTMENT WILL ACCEPT COMMENTS ON THE RULES UNTIL NOV 23 BEFORE MAKING THEM FINAL 9309270102 930902 REVIEW & OUTLOOK EDITORIAL GENERAL DINGELL II THESE COLUMNS HAVE LONG DEFENDED THE POWERS OF THE PRESIDENCY REGARDLESS OF THE PARTY IN THE WHITE HOUSE SO WE PAY ATTENTION WHEN A FORMER DEMOCRATIC ATTORNEY GENERAL WARNS THAT A CURRENT DEMOCRATIC PRESIDENT IS FAILING TO DEFEND HIS OFFICE THAT'S EXACTLY THE ALARM RAISED RECENTLY IN A REMARKABLE SPEECH TO THE HERITAGE FOUNDATION BY BENJAMIN CIVILETTI WHO RAN THE CRIMINAL DIVISION AND LATER THE ENTIRE JUSTICE DEPARTMENT UNDER JIMMY CARTER HE IS WORRIED ENOUGH ABOUT CONGRESS NOW TO WARN PUBLICLY THAT BILL CLINTON'S JUSTICE DEPARTMENT IS MAKING A VERY SERIOUS ERROR THAT COULD THREATEN EVERYONE'S CIVIL LIBERTIES JANET RENO THE OSTENSIBLE ATTORNEY GENERAL SHOULD SEND FOR A TRANSCRIPT MR CIVILETTI IS TROUBLED THAT JUSTICE HAS AGREED TO TURN CAREER PROSECUTORS OVER TO THE TENDER MERCIES OF JOHN DINGELL'S ENERGY AND COMMERCE COMMITTEE WHEN THESE COLUMNS RAISED SIMILAR WORRIES TWO MONTHS AGO MR DINGELL REPLIED IN HIS CHARMING WAY HE CALLED US ECONOMIC ROYALISTS THAT HE'S JUST TRYING TO ENFORCE THE LAW BUT MR CIVILETTI'S SPEECH MAKES IT CLEAR THAT BY CAVING TO THE DINGELL DEMANDS THE CLINTON ADMINISTRATION HAS BROKEN WITH JUSTICE PRACTICE AND CONSTITUTIONAL PRECEDENT MR DINGELL'S AIM IS TO RUN ONE OF HIS LEGENDARY PUBLICITY BULLDOZERS OVER CAREER LAWYERS AT JTICE'S ENVIRONMENTAL CRIMES SECTION HE THINKS THEY HAVEN'T BEEN THROWING ENOUGH BUSINESS PEOPLE IN JAIL EVEN THOUGH ENVIRO CONVICTIONS DOUBLED FROM 1989 TO 1992 SO HE WANTS HIS STAFF OF AMBITIOUS LEGAL CLIMBERS TO INTERROGATE CAREER PROSECUTORS IN PRIVATE ABOUT SEVERAL CASES IN WHICH THEY DECIDED NOT TO PROSECUTE HE COULD CARE LESS ABOUT CONVICTIONS EVENTUALLY AS IS HIS WONT HE WILL KEELHAUL ONE OR MORE AT PUBLIC HEARINGS MR CIVILETTI SAYS SUCH A CONGRESSIONAL INTRUSION IS PERILOUS TO CIVIL LIBERTY BECAUSE IT TRAMPLES ON PROSECUTORIAL DISCRETION ESPECIALLY WHEN LAWS ARE AS AMBIGUOUS OR NEW AS ENVIRONMENTAL CRIMES A PROSECUTOR COULD INDICT HUNDREDS OF PEOPLE AT ANY ONE TIME BUT AN EXPERIENCED PROSECUTOR USES HIS BEST JUDGMENT AND LIMITED RESOURCES TO TRY ONLY THE MOST WORTHY CASES NOW IMAGINE MR CIVILETTI SAYS THAT A CITIZEN PLEADING INNOCENCE SUDDENLY HAS TO SHOUT OVER THE LOUD PROTESTATIONS OF MEMBERS OF CONGRESS URGING INDICTMENT OF THIS VERY INDIVIDUAL OR THAT MEMBERS OF CONGRESS ARE STANDING READY TO CHASTISE THE PROSECUTOR IF NO INDICTMENT IS BROUGHT IT'S OBVIOUS THAT THE BUREAUCRATIC WAY TO PROCEED WOULD BE TO INDICT IN ALL CASES YET IT WAS PRECISELY TO AVOID SUCH UNFAIRNESS THAT THE FOUNDERS BARRED CONGRESS FROM ENACTING BILLS OF ATTAINDER LAWS INFLICTING PUNISHMENT AGAINST INDIVIDUALS WITHOUT TRIAL IN THE CONSTITUTION IN THIS CASE EVEN GREATER DANGER EXISTS BECAUSE THE ENERGY AND COMMERCE COMMITTEE HAS ALREADY EXPRESSED ITS DISPLEASURE WITH THE ACTIONS OF THE PROSECUTORS MR CIVILETTI ADDS CONGRESS HAS THE LEGITIMATE OVERSIGHT POWER TO ASK ABOUT THE NUMBER AND NATURE OF PROSECUTIONS CONVICTIONS PENALTIES AND EVEN THE GENERAL FACTORS USED IN DECIDING WHETHER TO PROSECUTE MR CIVILETTI SAYS BUT SUCH QUESTIONS CAN BE ANSWERED BY POLITICAL APPOINTEES WHO SPEAK FOR THE PRESIDENT CAREER PROSECUTORS HAVE HISTORICALLY BEEN SHIELDED FROM SUCH POLITICAL INQUISITION WHICH MAKES IT ALL THE MORE STARTLING THAT MS RENO AND HER TOP AIDES WON'T STAND BY THEIR CAREER DEPUTIES NOW AND ESPECIALLY SINCE THE CAREER LAWYERS ARE BEING TOLD IN THE TYPICAL DINGELL STYLE THAT THEY WILL BE PRESUMED HOSTILE AND SOMEHOW CULPABLE IF THEY SO MUCH AS REQUEST A TRANSCRIPT OR TAPE RECORDING OF THEIR OWN INTERROGATION OF COURSE THE DINGELL STAFF WILL BE ABLE TO TAKE AND INTERPRET AND LEAK THEIR OWN NOTES AS THEY WISH THE SUSPICION AMONG CAREER ATTORNEYS IS THAT MS RENO HAS DECIDED TO APPEASE MR DINGELL IN RETURN FOR SOME UNKNOWN LEGISLATIVE FAVOR THEY WONDER WHY WEBB HUBBELL THE ASSOCIATE ATTORNEY GENERAL AND PRESIDENTIAL CRONY/POLITICAL OPERATIVE AND FORMER ROSE LAW FIRM PARTNER WROTE THE LETTER TO MR DINGELL GRANTING HIM INTERROGATION RIGHTS THEY ALSO KNOW THAT THE DEPUTY ATTORNEY GENERAL PHILIP HEYMANN USED TO WORK FOR MR CIVILETTI AND WELL KNOWS HOW MUCH THIS BREAKS WITH PAST PRACTICE A DECADE OF DIVIDED GOVERNMENT HAS MADE DISPUTES OVER PRESIDENTIAL POWER SEEM MERELY PARTISAN BUT CONGRESSIONAL POACHING ON EVEN THIS DEMOCRATIC PRESIDENT SHOWS THERE'S MUCH MORE AT STAKE THE FOUNDERS DIVIDED THE POWER TO PROSECUTE FROM THE POWER TO LEGISLATE BECAUSE THEY WANTED TO PROTECT AGAINST TYRANNY IF BILL CLINTON REALLY WANTED JOHN DINGELL AS HIS ATTORNEY GENERAL HE COULD HAVE APPOINTED HIM SEE RELATED LETTERS LETTERS TO THE EDITOR WE HAVE THE RIGHT WSJ SEPT 27 1993 9309020133 YY93 MM09 9309270101 930927 MARKETING & MEDIA HEARST EXPLORES SALE OF BOOK DIVISION THAT INCLUDES WILLIAM MORROW AVON BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HEARST CORP HAS HIRED INVESTMENT BANK LAZARD FRERES & CO TO EXPLORE THE SALE OF ITS BOOK DIVISION WHICH INCLUDES PUBLISHERS WILLIAM MORROW & CO AND AVON BOOKS PUBLISHERS WHO HAVE SEEN DOCUMENTS CIRCULATED BY LAZARD ON THE HEARST BOOK GROUP SAY THAT THERE ISN'T AN ASKING PRICE LISTED BUT THAT THE COMPANY IS SEEKING OFFERS THE BOOK PUBLISHER'S CURRENT SALES ARE APPROXIMATELY 160 MILLION A YEAR WITH OPERATING PROFIT OF ABOUT 15 MILLION SAID ONE EXECUTIVE WHO REVIEWED THE MATERIALS IN ADDITION TO PUBLISHING ABOUT 650 ADULT BOOKS ANNUALLY HEARST PUBLISHES SOME 150 CHILDREN'S BOOKS A YEAR UNDER SUCH IMPRINTS AS GREENWILLOW BOOKS AND MORROW JUNIOR ALTHOUGH HEARST WAS APPROACHED BY SEVERAL POTENTIAL BUYERS OF THE BOOK DIVISION EARLIER THIS YEAR THOSE TALKS DIDN'T LEAD TO A DEAL AND HEARST HAS DECLINED TO COMMENT ON THOSE DISCUSSIONS LAST SPRING PUBLISHING SOURCES SAID HEARST WANTED AS MUCH AS 250 MILLION FOR THE BOOK BUSINESS A PRICE SOME ANALYSTS VIEW AS EXCESSIVE FOR A SOMEWHAT STAGNANT COMPANY IN A LOWMARGIN BUSINESS FRIDAY A HEARST SPOKESMAN SAID WE RECEIVED SOME INQUIRIES REGARDING THE STATUS OF THE BOOK DIVISION SO WE RETAINED LAZARD FRERES TO EXPLORE THE MARKET HE ADDED THIS IS AN EXPLORATORY PROCESS AMONG THOSE WHO MIGHT BE INTERESTED IS WALT DISNEY CO WHICH HAS BEEN LOOKING FOR BOOKPUBLISHING ACQUISITIONS LATELY DISNEY PUBLISHING EXECUTIVES COULDN'T BE REACHED FOR COMMENT FRIDAY PUTNAM BERKLEY GROUP INC A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL'S MCA INC WAS ONE OF SEVERAL COMPANIES TO EXAMINE THE HEARST PROPERTY LAST SPRING AND MAY ALSO BE INTERESTED PUTNAM'S CHAIRMAN PHYLLIS GRANN DECLINED TO COMMENT HARCOURT GENERAL INC HAS ALSO BEEN IN THE MARKET LATELY FOR PUBLISHING PROPERTIES AND IS AMONG THE COMPANIES CONSIDERING BIDDING FOR MACMILLAN INC THE COLLEGE TEXT AND TRADE PUBLISHING ARM OF THE LATE ROBERT MAXWELL'S EMPIRE HARCOURT IS BELIEVED TO BE MORE INTERESTED IN EDUCATIONAL PUBLISHING THAN IN THE CONSUMER BOOK BUSINESS CLOSELY HELD HEARST WHICH ALSO PUBLISHES MAGAZINES AND NEWSPAPERS WON'T DISCUSS ITS BOOK OPERATIONS WHICH HAVE APPEARED TO SUFFER FROM THE PARENT'S INATTENTION OVER THE PAST SEVERAL YEARS BOTH MORROW AND AVON HAVE LOST A NUMBER OF TOP EDITORS MOST OF WHOM HAVEN'T BEEN REPLACED THE TOP EXECUTIVE AT AVON CAROLYN REIDY DEPARTED MORE THAN A YEAR AGO FOR ANOTHER PUBLISHER AND A SUCCESSOR HAS YET TO BE NAMED AMONG AUTHORS WHO'VE LEFT ARE KEN FOLLETT ELMORE LEONARD ED MCBAIN AND BARBARA BUSH HOWARD KAMINSKY CHAIRMAN OF THE HEARST TRADE BOOK GROUP DECLINED TO COMMENT ON HEARST'S INTENTIONS FOR THE DIVISION IN THE PAST MR KAMINSKY AND OTHER EDITORS HAVE JUSTIFIED THE LOSS OF AUTHORS LIKE MR FOLLETT BY SAYING THAT COMPETING PUBLISHERS WERE WILLING TO VASTLY OVERPAY FOR SUCH BESTSELLING WRITERS AND THE HEARST GROUP WAS JUST BEING PRUDENT EARLIER THIS YEAR MORROW GAVE UP ITS RIGHTS TO MARGARET MITCHELL'S GONE WITH THE WIND UNWILLING TO MATCH THE STEEP PRICE OFFERED BY TIME WARNER INC'S WARNER BOOKS INSIDERS IN THE GROUP SAY THAT WAITING IN LIMBO FOR HEARST TO MAKE A MOVE ALL THESE MONTHS HAS BEEN BAD FOR MORALE AND HAS HURT THE COMPANY'S ABILITY TO ATTRACT BOTH EDITORS AND AUTHORS NONETHELESS MORROW AND AVON HAVE BEEN AGGRESSIVELY MARKETING NEW TITLES THIS FALL HARDCOVER PUBLISHER MORROW IN PARTICULAR HAS SEVERAL PROMISING NEW BOOKS JUST OUT OR DUE SOON INCLUDING THE SEQUEL TO DAPHNE DU MAURIER'S REBECCA I THINK THE COMPANY HAS BEEN HURT BY EVERYBODY IN THE BUSINESS THINKING THEY ARE ON THE BLOCK SAID ONE PUBLISHER WHO LOOKED AT THE DOCUMENTS PITCHING HEARST'S BOOK DIVISION IF THEY INSIST ON A PRICE OF ABOUT 250 MILLION I DON'T THINK THIS PROPERTY WILL SELL BUT LOTS OF PEOPLE WILL BE INTERESTED AT THE RIGHT PRICE 9309270100 930927 INTERNATIONAL GERMANY'S FACTORIES MINES HAVE CUT 10 OF WORK FORCE IN YEAR SPECIAL TO THE WALL STREET JOURNAL WIESBADEN GERMANY STRUGGLING THROUGH THE THROES OF GERMANY'S WORST RECESSION SINCE WORLD WAR II THE COUNTRY'S MANUFACTURING AND MINING INDUSTRIES HAVE DISMISSED ALMOST 10 OF THEIR WORK FORCE IN THE PAST YEAR ACCORDING TO DATA FROM THE GERMAN FEDERAL STATISTIC OFFICE THE NEWS WILL PROBABLY ALARM POLITICIANS WHO HAVE PREDICTED IN PRIVATE THAT MANUFACTURING JOBS LOST DURING THE RECESSION WON'T BE REGAINED IN A RECOVERY IN JULY TOTAL EMPLOYMENT IN THE MINING AND MANUFACTURING INDUSTRIES IN GERMANY STOOD AT 75 MILLION WORKERS DOWN 95 FROM THE YEAR BEFORE ALTHOUGH LAYOFFS HAVE TAKEN PLACE IN BOTH EASTERN AND WESTERN GERMANY THE STATISTICS OFFICE REPORTED THAT EASTERN GERMANY HAS ABSORBED THE BRUNT OF THE BLOW IN EASTERN GERMANY EMPLOYMENT IN MANUFACTURING WAS DOWN 20 IN JULY FROM A YEAR EARLIER AT 750000 WORKERS THE STATISTIC OFFICE DIDN'T GIVE A TOTAL FOR JOB LOSSES IN WESTERN GERMANY BUT IT DID NOTE THAT THE MACHINERY AND CAPITAL GOODS INDUSTRY HAS TAKEN THE HARDEST BLOW BY JULY THE WORK FORCE IN THIS INDUSTRY HAD FALLEN BY 350000 OR 9 FROM A YEAR EARLIER ALSO IN WESTERN GERMANY THE CONSUMER GOODS INDUSTRY SAW ITS WORK FORCE SHRINK 75 TO 105000 WORKERS THE RAW MATERIALS INDUSTRY'S EMPLOYMENT SLIPPED 71 TO 95000 AND THE MINING INDUSTRY SHED 10000 JOBS OR ABOUT 10 OF ITS FORCE 9309270099 930927 FOREIGN EXCHANGE POUND TRADING IS LIKELY TO STAY VOLATILE UNTIL TORIES MEET OVER POSSIBLE RATE CUT BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK SPECULATION ABOUT A CUT IN BRITISH INTEREST RATES SHOULD KEEP POUND TRADING VOLATILE UNTIL BRITAIN'S RULING CONSERVATIVE PARTY MEETS NEXT WEEK FOR ITS ANNUAL CONFERENCE AND WHILE STERLING SHOULD SETTLE DOWN IN THE IMMEDIATE AFTERMATH OF THE CONFERENCE MARKET PLAYERS WILL BE BACK ON TENTERHOOKS SOON THEREAFTER AS THEY LOOK AHEAD TO BRITAIN'S BUDGET ANNOUNCEMENT IN LATE NOVEMBER ANALYSTS EXPECT BRITAIN TO CUT ITS BASE LENDING RATE WHICH STANDS AT 6 ONEHALF TO ONE PERCENTAGE POINT BY YEAR END POLITICS AND ECONOMICS DICTATE A RATE CUT ANALYSTS SAY BRITAIN'S ECONOMIC RECOVERY IS RUNNING OUT OF STEAM A SUMMER OPINION POLL CONFERRED ON PRIME MINISTER JOHN MAJOR THE LOWEST PUBLIC APPROVAL RATING FOR A BRITISH LEADER IN HISTORY AND LOWER RATES WILL HELP EASE THE PAIN OF A LIKELY TAX BOOST NEEDED TO CUT THE BUDGET DEFICIT THEY SAY BUT THE TIMING OF THE CUT IS LESS CLEAR TORIES TEND TO CUT RATES AROUND THE TIME OF THEIR PARTY CONFERENCE WHICH WILL BE HELD OCT 4 AND 5 SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON THIS TIME THE NEED FOR A POLITICAL BOOST IS ACUTE THE FACT THAT THE TORIES ARE HAVING SUCH DIFFICULTY MAINTAINING POPULAR APPEAL MAKES CHANCES OF RATE CUT EVEN HIGHER SAYS SANDY BATTEN SENIOR ECONOMIST AT CITIBANK BUT AT 24724 MARKS LATE FRIDAY IN NEW YORK DOWN FROM THE YEAR'S HIGH OF 25965 MARKS SET IN EARLY AUGUST STERLING MAY BE TOO WEAK TO WITHSTAND A RATE CUT SAYS MR O'HANLON THE POUND ALSO TRADED AT 15080 LATE FRIDAY IN NEW YORK DOWN FROM 15320 AT THE END OF THE PREVIOUS WEEK THE DOLLAR ROSE ACROSS THE BOARD ON HAVEN BUYING AMID POLITICAL TURMOIL IN RUSSIA TRADING FRIDAY AT 16395 MARKS AND 10585 YEN UP FROM 16115 MARKS AND 10446 YEN A WEEK EARLIER MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 16303 MARKS AND 10625 YEN BRITAIN'S GOVERNMENT WILL WORRY THAT FOREIGN INVESTORS IN THE GILT MARKET WILL SHY AWAY FROM BRITISH DEBT SECURITIES IF THEY BELIEVE A DECLINING POUND WILL EAT INTO THEIR RETURNS SAYS MR O'HANLON A WEAK GILT MARKET WILL DRIVE INTEREST RATES HIGHER RAISING THE GOVERNMENT'S COST OF FUNDING ITS DEFICIT OR PUBLIC SECTOR BORROWING REQUIREMENT THE PROBLEM FOR THE CHANCELLOR CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE IS THAT IF HE CUTS RATES WHEN THE MARKETS ARE EDGY AND STERLING COMES UNDER MORE PRESSURE THAT WILL LEAD TO THE GILT MARKET COMING UNDER PRESSURE MR O'HANLON SAYS THE FEAR IS THAT THEY WON'T BE ABLE TO START FUNDING THE PSBR PUBLIC SECTOR BORROWING REQUIREMENT IF NO RATE CUT MATERIALIZES NEXT WEEK MARKET PLAYERS WILL BEGIN TO LOOK FOR A CUT AROUND NOV 25 TO COINCIDE WITH THE ANNOUNCEMENT OF THE FISCAL 199495 BUDGET ANALYSTS SAY WITH A TAX INCREASE IN THE OFFING TO SHRINK THE BUDGET DEFICIT LOWER INTEREST RATES WILL BE NEEDED TO KEEP CONSUMERS SPENDING THEY SAY YOU'LL GET A KNEEJERK REACTION OF CURRENCY SELLERS BASED ON LOWER INTEREST RATES SAYS ROBERT STEIN CHIEF DEALER FOR PROPRIETARY TRADING AT BARCLAYS BANK BUT LOWER RATES AT THIS LEVEL WILL SEEM CONSTRUCTIVE TO REVITALIZE THE ECONOMY AND WILL PROVE TO BE POSITIVE FOR THE POUND 9309270098 930927 INTERNATIONAL WASHINGTON INSIGHT CHANGE IN JAPAN'S GOVERNMENT LOOKS MORE LIKE STATUS QUO US AIDES SAY BY ALAN MURRAY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JAPANESE GOVERNMENT HAS GREASED THE PATH TO TODAY'S FIRST MEETING BETWEEN PRESIDENT CLINTON AND PRIME MINISTER MORIHIRO HOSOKAWA EVER THE GRACIOUS GUESTS THE JAPANESE HAVE OFFERED UP A NUMBER OF NICELY WRAPPED GIFTS TO THE US UNVEILING BOTH A NEW 60 BILLION ECONOMIC STIMULUS PACKAGE AND A CUT IN THE OFFICIAL DISCOUNT INTEREST RATE TO 175 FROM 25 MOVES US OFFICIALS HAD LONG URGED IN AN EFFORT TO GET THE WORLD ECONOMY MOVING BUT SOME US OFFICIALS SUSPECT THAT THE DRAMATIC CHANGE USHERED IN BY THE NEW GOVERNMENT IN TOKYO IS MORE SMOKE THAN FIRE THE STIMULUS PACKAGE WAS GREETED AT THE US TREASURY WITH SNIDE JOKES MOST OF THE MONEY US OFFICIALS CONTEND WOULD HAVE BEEN SPENT ANYWAY MEANWHILE AT TALKS IN HAWAII LAST WEEK BETWEEN US AND JAPANESE TRADE OFFICIALS THE JAPANESE SIDE REVERTED TO STANDARD BROMIDES ABOUT JAPAN ALREADY BEING THE MOST OPEN ECONOMY IN THE WORLD TO BE SURE THE MOOD MUSIC HAS CHANGED MR HOSOKAWA HOLDS AMERICANSTYLE NEWS CONFERENCES AND POURS HIS OWN TEA HE TALKS OF MAKING JAPAN A MORE CONSUMERORIENTED SOCIETY AND OF BREAKING THE COZY RELATIONSHIP BETWEEN BUSINESSMEN AND POLITICIANS THAT AMONG OTHER THINGS HAS MADE JAPAN SUCH AN IMPENETRABLE MARKET FOR FOREIGN BUSINESSMEN BUT WHILE THE ATMOSPHERICS ARE DIFFERENT THE SUBSTANCE SEEMS THE SAME REFERRING TO LAST WEEK'S TRADE TALKS IN TOKYO WHITE HOUSE OFFICIAL BOWMAN CUTTER SAID THE DISCUSSIONS SEEM EXACTLY REMINISCENT OF HOW THEY HAVE GONE BEFORE THE NEW GOVERNMENT TOOK OFFICE IN PART SIGNS OF THE STATUS QUO EMANATING FROM JAPAN REFLECT THE FACT THAT THE NEW GOVERNMENT HAS CHOSEN TO PUT ITS PRIMARY FOCUS ON POLITICAL REFORM NOT ECONOMIC REFORM THE NO 1 ITEM ON THEIR AGENDA IS POLITICAL REFORM AND IT'S AN OVERRIDING ISSUE FOR THEM SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN ALL OF THEIR ENERGY IS BEING POURED INTO THAT MOREOVER THE JAPANESE ARE FINDING COALITION GOVERNMENT IS NO EASY TASK A MAJOR OBSTACLE TO AN ECONOMYSTIMULATING CUT IN THE INCOME TAX FOR INSTANCE IS THAT THE SOCIALIST PARTY WHICH IS PART OF THE COALITION OBJECTS TO A PLAN TO RAISE CONSUMPTION TAXES LATER TO MAKE UP LOST REVENUE IF THE LIBERAL DEMOCRATIC PARTY WERE STILL IN CHARGE ONE SEASONED BUREAUCRAT SPECULATES IT WOULD BE EASIER TO CUT INCOME TAXES AND THEN THERE'S THE INHERENT TENSION BETWEEN THE PROFESSIONAL BUREAUCRATS WHO LONG HAVE HAD THE UPPER HAND IN JAPANESE GOVERNMENT AND THE POLITICIANS WHO ARE TRYING TO ENACT CHANGE THE REAL VILLAIN IS THE BUREAUCRACY CONTENDS CLYDE PRESTOWITZ A FORMER US TRADE NEGOTIATOR AND HEAD OF THE ECONOMIC STRATEGY INSTITUTE IN WASHINGTON THE JAPANESE ELITE BUREAUCRACY IS A POWERFUL FORCE WITH A POWERFUL VESTED INTEREST IN CENTRALIZATION AND REGULATION AS A RESULT SOME IN WASHINGTON HAVE BEEN LED TO CONCLUDE AS DOES DUTCH JOURNALIST KAREL VAN WOLFEREN THAT THE NOTION JAPANESE SOCIETY IS AT A WATERSHED IS BASED MORE ON WISHFUL THINKING THAN ON AN UNDERSTANDING OF THE FORCES AT WORK IN THE JAPANESE BODY POLITIC BUT DESPITE THESE OBSTACLES US OFFICIALS WOULD BE WRONG TO BET CHANGES IN JAPAN AREN'T REAL CONVERSATIONS WITH YOUNG JAPANESE PROFESSIONALS SHOW THAT TOLERANCE FOR THE OLD WAYS OF JAPANESE SOCIETY IS FADING CHANGE MAY TAKE TIME BUT IT IS COMING AND THE RESULT WILL BE A JAPAN THAT IS MORE OPEN AND MORE ABLE TO RELATE TO THE REST OF THE INDUSTRIALIZED WORLD FOR THOSE WHO SAY NOTHING IN JAPAN WILL EVER CHANGE JAPANESE DIET MEMBER KAZUO AICHI TOLD A WASHINGTON AUDIENCE FRIDAY LET ME JUST SAY YOU ARE IN FOR SOME BIG SURPRISES IN THE MEANTIME JAPANESE AMBASSADOR TAKAKAZU KURIYAMA COUNSELS HIS AMERICAN FRIENDS TO BE PATIENT I AM PRETTY CERTAIN THAT THIS IS THE BEGINNING OF A PROCESS OF REAL PROFOUND CHANGES IN JAPAN HE SAYS IT'S NOT GOING TO HAPPEN IN ONE OR TWO YEARS BUT OVER TIME I'M QUITE CERTAIN THERE WILL BE SIGNIFICANT CHANGE 9309270097 930927 LAW JUDGE TELLS TRANS UNION TO CEASE GIVING FINANCIAL DATA TO DIRECTMAIL MARKETERS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL ADMINISTRATIVELAW JUDGE ORDERED THE CREDITREPORTING FIRM TRANS UNION CORP TO STOP PROVIDING CONFIDENTIAL FINANCIAL DATA TO DIRECTMAIL MARKETERS THE RULING BY THE JUDGE IN WASHINGTON UPHELD A FEDERAL TRADE COMMISSION COMPLAINT FILED IN JANUARY AGAINST THE CHICAGO COMPANY THE COMPLAINT CHARGED THAT THE PRACTICE AT THE CLOSELY HELD CONCERN VIOLATED THE FEDERAL LAW THAT REGULATES THE CREDITREPORTING INDUSTRY TRANS UNION IS ONE OF THREE HUGE CREDITREPORTING COMPANIES THAT HAVE OPERATED LUCRATIVE SIDE BUSINESSES IN WHICH THEY HAVE USED THEIR CREDIT DATABASES TO LEASE OR SELL LISTS OF UPSCALE CONSUMERS THE FTC COMPLAINT ALLEGED THAT THE PRACTICE VIOLATED THE FEDERAL LAW REGULATING ACCESS TO CREDIT INFORMATION BY MAKING IT AVAILABLE FOR PURPOSES OTHER THAN THOSE SPECIFIED IN THE FAIR CREDIT REPORTING ACT THE PRACTICAL EFFECT OF THE RULING IS THAT ALL THREE MAJOR CREDIT BUREAUS ARE NOW EITHER PROHIBITED FROM OR HAVE AGREED TO STOP PROVIDING DATA FOR DIRECTMAIL OPERATIONS TRW INC CLEVELAND AGREED TO STOP USING CREDIT DATA IN ITS MAILINGLIST BUSINESS IN JANUARY ATLANTABASED EQUIFAX INC ANOTHER BIG CREDITREPORTING COMPANY LEFT THE TARGETMARKETING BUSINESS IN 1991 NONETHELESS SAID DAVID MEDINE HEAD OF THE CREDIT PRACTICES DIVISION AT THE FTC FRIDAY'S DECISION IS REALLY ONLY ONE BATTLE IN THE WAR AGAINST JUNK MAIL WILL THERE BE LISTS THERE WILL BE SOME THE BIGGER CONCERN IS THAT INFORMATION ABOUT PEOPLE WILL BE MORE PROTECTED THAN IT WAS BEFORE THE RULING AN FTC SPOKESMAN NOTED AFFECTS ONLY CREDIT BUREAUS IT HAS NO IMPACT ON OTHER BUSINESSES SUCH AS BANK CARD COMPANIES THAT COMPILE CREDIT DATA FOR SALE OR LEASE TO DIRECT MARKETERS TRANS UNION HAD ARGUED THAT THE FINANCIAL DATA IT PROVIDED WAS NOT CREDITRELATED BECAUSE THE COMPANY MERELY REVEALED NAMES OF PEOPLE WHO HAD TWO OR MORE CREDIT ACCOUNTS AND DESCRIBED THEM AS UPSCALE RETAIL CONSUMERS SINCE THE FAIR CREDIT REPORTING ACT SPECIFICALLY COVERS INFORMATION THAT BEARS ON A CONSUMER'S CREDITWORTHINESS TRANS UNION ARGUED THE COMPANY'S LISTS AREN'T COVERED BY THE LAW THE COMPANY LEASED COMPUTER TAPES WITH NAMES OF CONSUMERS TO A HOST OF COMPANIES INCLUDING CITIBANK FOR DIRECT MAIL OFFERS OF HOME EQUITY FINANCING PUBLISHERS CLEARING HOUSE FOR MAILINGS OF TEN MILLION DOLLAR SWEEPSTAKES AND COLUMBIA HOUSE FOR INVITATIONS TO JOIN THE COLUMBIA HOUSE VIDEO CLUB IN A STATEMENT TRANS UNION PROMISED AN APPEAL SAYING IT SUPPORTS PROPOSALS THAT WOULD ALLOW CONSUMERS TO OPT OUT OF BEING INCLUDED ON TARGET MARKET LISTS THE COMPANY SAID THAT ANY INVASION OF PRIVACY CAUSED BY THE DISSEMINATION OF THESE LISTS IS COUNTERBALANCED BY SPECIAL OFFERS AND PRODUCTS OFFERED BY DIRECT MARKETERS IN UPHOLDING THE FTC'S COMPLAINT ADMINISTRATIVE LAW JUDGE LEWIS F PARKER RULED THAT BY PROVIDING THE NAMES OF CONSUMERS WITH TWO OR MORE CREDIT ACCOUNTS TRANS UNION'S MARKETING LISTS ARE ESSENTIALLY CONSUMER REPORTS THAT IS THEY HAVE DIRECT BEARING ON A CONSUMER'S CREDITWORTHINESS CREDIT STANDING OR CREDIT CAPACITY THE JUDGE RULED 9309270096 930927 RETAILING NEW WARRIORS SHAVING PRICES ENTER SODA WAR BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS CATERING TO INCREASINGLY COSTCONSCIOUS SHOPPERS MORE CONVENIENCE STORES ARE STOCKING THEIR SHELVES WITH PRIVATELABEL SODAS AND THESE MOVES SEEM TO HAVE DRIVEN THE BIG SOFTDRINK BRANDS TO SLASH PRICES IN DEFENSE THERE IS A WAR GOING ON WITH ALL THE SOFT DRINKS SAYS AHMED KHAN MOTIONING TO BANNERS THAT FESTOON HIS STOP N GO STORE HERE WHILE THE STORE PUSHES ITS OWN PRIVATELABEL SODA LINE CALLED SIMPLY GREAT THE BANNERS ANNOUNCE SALE PRICES ON EVERY IMAGINABLE SOFTDRINK BRAND ADDS MR KHAN IN 15 YEARS I'VE NEVER SEEN IT LIKE THIS CONVENTIONAL RETAILING WISDOM LONG HELD THAT CONVENIENCESTORE CUSTOMERS WORRY MORE ABOUT ZIPPING IN AND OUT THAN SAVING A FEW CENTS BUT CONVENTIONAL WISDOM WENT OUT THE WINDOW IN THE RECENT RECESSIONARY YEARS WHEN THE COUNTRY'S THREE LARGEST CONVENIENCESTORE CHAINS ALL FOUND THEMSELVES IN CHAPTER 11 BANKRUPTCY PROCEEDINGS WHILE EACH CASE WAS DIFFERENT SOME NEW WISDOM EMERGED PENNYPINCHING CUSTOMERS WERE DEFECTING TO ALLNIGHT SUPERMARKETS AND GASSTATION MINIMARTS TO BUY LOWERPRICED BEER CIGARETTES AND SODA SO CONVENIENCE STORES BEGAN EXPERIMENTING BEGINNING WITH CIGARETTES BOTH NATIONAL CONVENIENCE STORES INC WHICH OPERATES STOP N GO AND THREE OTHER CHAINS AND CIRCLE K CORP SAW CIGARETTE SALES BOOM AFTER THEY INTRODUCED CHEAP PRIVATELABEL CIGARETTE LINES IN 1991 FOLLOWING THAT SUCCESS NATIONAL CONVENIENCE EXECUTIVES STARTED CASTING ABOUT FOR OTHER CORE PRODUCT CATEGORIES THAT MIGHT BENEFIT FROM A LOWPRICE HOUSE BRAND WE KNOW TODAY'S CONSUMER RESPONDS TO VALUE SAYS JAYAR DAILY A VICE PRESIDENT AT NATIONAL CONVENIENCE SO WHEN SALESPEOPLE FOR COTT CORP OF TORONTO WHICH HAD AN EXCLUSIVE CONTRACT TO USE ROYAL CROWN COLA CO'S HIGHLY REGARDED COLA FORMULATIONS IN PRIVATELABEL PRODUCTS CALLED ON NATIONAL CONVENIENCE LAST YEAR MR DAILY SAYS THEY REACHED A QUICK AGREEMENT TO PROVIDE THE CHAIN'S SIMPLY GREAT SOFTDRINK LINE INTRODUCED SEVERAL MONTHS AGO MEANWHILE SOUTHLAND CORP OPERATOR OF 7ELEVEN THE NATION'S LARGEST CONVENIENCESTORE CHAIN HAS BEEN EXPERIMENTING WITH A VARIETY OF PRIVATELABEL PRODUCTS IT WILL ROLL OUT A HOUSEBRAND SOFTDRINK LINE ALSO PRODUCED BY COTT IN NOVEMBER SAYS GERALD PENCER COTT'S CHAIRMAN AND CHIEF EXECUTIVE OF THE THREE LARGEST CHAINS CIRCLE K IS THE ONLY ONE THAT SAYS IT ISN'T CONSIDERING A LINE OF PRIVATELABEL SOFT DRINKS ALTHOUGH A SPOKESMAN SAYS THE PHOENIXBASED COMPANY IS EXPLORING OTHER PRIVATELABEL POSSIBILITIES SHEETZ INC A TRENDSETTING 162STORE ALTOONA PA CONVENIENCESTORE CHAIN KICKED OFF ITS PRIVATELABEL IT COLA AND DIET COLA IN 12OUNCE CANS ON MEMORIAL DAY LOUIE SHEETZ VICE PRESIDENT OF MARKETING SAYS THE COMPANY SOLD 650000 CASES IN 20 WEEKS AND HAS CONTRACTED WITH BROOKS BEVERAGE MANAGEMENT CO OF HOLLAND MICH WHICH MAKES SHEETZ'S IT COLAS TO PRODUCE A TWOLITER PACKAGE MR SHEETZ BELIEVES THE IT COLAS WOULD HAVE SOLD BETTER IF NOT FOR THE MOST AGGRESSIVE PRICING THIS SUMMER I'VE EVER SEEN ON PEPSICO AND COCACOLA SODAS AND HE CONSIDERS THAT PRICING A DIRECT RESPONSE TO THE PRIVATELABEL COMPETITION BOTH COCACOLA CO AND PEPSICO INC PUBLICLY POOHPOOH THE CHALLENGE OF PRIVATELABEL COMPETITORS BUT OTHER CHAINS TOO SAY THE COMPANIES OFFERED THE MOST INTENSIVE CONVENIENCESTORE PROMOTIONS IN RECENT MEMORY THIS SUMMER INDEED HERE IN DALLAS MR KHAN GRUMBLES THAT THE PRIVATELABEL SIMPLY GREAT SODA HASN'T BEEN ALL THAT GREAT A SELLER IN HIS STORE IN RECENT MONTHS BECAUSE COKE PEPSI AND DR PEPPER HAVE MATCHED ITS PRICE 49 CENTS FOR A 20OUNCE BOTTLE THOUGH HE WOULDN'T PROVIDE NUMBERS NATIONAL CONVENIENCE'S MR DAILY SAYS THE STORE BRANDS ARE DOING OK THE MAJOR SOFTDRINK MAKERS HAVE ALWAYS BEEN PARTICULARLY AGGRESSIVE IN TEXAS WHERE MORE THAN THREEFOURTHS OF NATIONAL CONVENIENCE'S 720 STORES ARE LOCATED AND WHERE PERCAPITA SOFTDRINK CONSUMPTION IS AMONG THE HIGHEST IN THE COUNTRY PEPSICO SAYS ITS PROMOTIONS HAVE NOTHING TO DO WITH THE NEW PRIVATELABEL BRANDS SPOKESMAN GARY HEMPHILL SAYS THAT WHILE PRIVATELABEL MAKERS LIKE COTT ARE MAKING A BETTER PRODUCT WITH BETTER PACKAGING THAN IN THE PAST IT IS THE WEAK ECONOMY THAT DRIVES PRIVATELABEL SALES AND PEPSI BELIEVES THE PRICE DIFFERENCE IN SOFT DRINKS ISN'T BIG ENOUGH TO MAKE MUCH DIFFERENCE OFFICIALS OF DR PEPPER/SEVENUP COS DIDN'T RETURN CALLS SEEKING COMMENT BOB BERTINI COCACOLA SPOKESMAN SAYS THAT COMPANY DIDN'T PROMOTE MORE AGGRESSIVELY THIS SUMMER THAN IN PAST YEARS CERTAINLY PRIVATELABEL SOFTDRINK SALES IN CONVENIENCE STORES AREN'T AN OVERWHELMING THREAT FOR THE BIGNAME BRANDS ACCORDING TO SALES FIGURES COMPILED BY AC NIELSEN CO PRIVATELABEL SOFT DRINKS ACCOUNTED FOR JUST 1 OF SALES IN CONVENIENCE STORES IN THE QUARTER ENDED JUNE 12 COMPARED WITH 84 IN MAJOR SUPERMARKETS AND 226 IN MASS MERCHANDISERS SUCH AS WALMART BUT CONVENIENCE STORES' PRIVATELABEL SALES HAVE INCREASED NEARLY ONETHIRD FROM A YEAR AGO EVEN BEFORE THE FULL IMPACT OF THE NATIONAL CONVENIENCE AND SHEETZ INTRODUCTIONS CONVENIENCE STORES ARE DEAD RIPE FOR PRIVATE LABEL TO COME IN SAYS TOM PIRKO PRESIDENT OF BEVMARK INC A BEVERAGE INDUSTRY CONSULTING FIRM MR PIRKO THINKS CONVENIENCE STORES OFFER AT LEAST AS MUCH POTENTIAL AS SUPERMARKETS BECAUSE THEY HAVE MORE COMMAND OVER THEIR SHELVES THEY DON'T HAVE TO DEAL WITH 32000 ITEMS 9309270095 930927 WHO'S NEWS DISNEY'S MECHANIC IS SAID TO BE NAMED PRESIDENT OF TWENTIETH CENTURY FOX BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD IN A COUP FOR FOX NEWS CORP'S TWENTIETH CENTURY FOX FILM UNIT WILL NAME AS ITS PRESIDENT BILL MECHANIC WHO BUILT AND MANAGED WALT DISNEY CO'S WILDLY PROFITABLE HOMEVIDEO UNIT ACCORDING TO PEOPLE CLOSE TO BOTH COMPANIES NEITHER COMPANY WOULD COMMENT BUT AN ANNOUNCEMENT IS EXPECTED THIS WEEK MR MECHANIC 43 YEARS OLD WOULD RUN THE BUSINESS SIDE OF THE FOX STUDIO REPORTING TO PETER CHERNIN CHAIRMAN IN A COMPANY RIFE WITH FANATICAL WORKAHOLICISM MR MECHANIC WAS KNOWN AS ONE OF THE MOST SEVERELY AFFLICTED HE PRESIDED OVER THE BIGGEST MONEYMAKING MACHINE IN THE ENTERTAINMENT BUSINESS BUENA VISTA HOME VIDEO ADMITTEDLY HELPED BY DISNEY'S GROWING VAULT OF ANIMATED FEATURE FILMS PIONEERED AND PERFECTED THE CONCEPT OF VIDEO SELLTHROUGH VIDEOCASSETTES ARE SOLD DIRECTLY TO CONSUMERS OFTEN AT DISCOUNT STORES RATHER THAN SOLD TO VIDEO RETAILERS WHO IN TURN RENT THEM IN THE CASE OF THE COMING ALADDIN SOME INDUSTRY ESTIMATES HAVE DISNEY SELLING BETWEEN 25 MILLION AND 30 MILLION VIDEOCASSETTES GENERATING ABOUT 300 MILLION IN REVENUE UNDER MR MECHANIC'S STEWARDSHIP DISNEY MADE ITS SELLTHROUGH BUSINESS A YEARLONG PROPOSITION AND ENTERED INTO DIRECT DISTRIBUTION ARRANGEMENTS WITH MASSMERCHANT RETAILERS ELIMINATING THE MIDDLE MAN HE ALSO RAN DISNEY'S INTERNATIONAL THEATRICAL DISTRIBUTION OPERATION WHICH BECAME A STARTUP WHEN DISNEY ENDED A PARTNERSHIP WITH A TIME WARNER INC UNIT LAST YEAR MR MECHANIC'S INTERNATIONAL EXPERIENCE FITS WELL WITH THE GLOBAL EMPHASIS OF FOX INC CHAIRMAN RUPERT MURDOCH SAY PEOPLE CLOSE TO FOX MR MECHANIC WILL REPLACE STRAUSS ZELNICK WHO LAST SUMMER DEPARTED FOX TO BECOME CHAIRMAN OF CRYSTAL DYNAMICS A VIDEOGAME SOFTWARE DEVELOPER IN PALO ALTO CALIF MR ZELNICK WAS SAID TO HAVE LEFT HOLLYWOOD BECAUSE HE FELT CUT OFF FROM THE FILMPRODUCTION END OF THE BUSINESS THE JOB OF STUDIO PRESIDENT TENDS TO BE ORIENTED TO FINANCIAL AND ADMINISTRATIVE MATTERS IRONICALLY MR MECHANIC MAY BE JOINING FOX BECAUSE HE SEEKS TO MOVE CLOSER TO THE PRODUCTION ARENA ACCORDING TO COLLEAGUES THOUGH EXACT LINES OF AUTHORITY APPARENTLY HAVEN'T BEEN FINALIZED AND THERE MAY BE SOME CONTRACTUAL COMPLICATIONS INVOLVING FOX EXECUTIVES MR MECHANIC LIKELY WILL HAVE SOME RESPONSIBILITY OVER MARTING AND DISTRIBUTION AS WELL AS VIDEO MUSIC PAY TELEVISION AND OVERSEAS OPERATIONS AT DISNEY THOUGH HE WAS HIGHLY PRIZED AND COMPENSATED THE OPPORTUNITIES FOR SUCH WIDERANGING RESPONSIBILITIES WERE MORE LIMITED MR MECHANIC'S DEPARTURE IS A RARE RIP IN THE FABRIC OF DISNEY'S STABLE MANAGEMENT DISNEY ENTERTAINMENT EXECUTIVES TEND TO STAY PUT ESPECIALLY THOSE LIKE MR MECHANIC WHO WORKED AT PARAMOUNT PICTURES IN THE EARLY 1980S WITH MICHAEL EISNER AND JEFFREY KATZENBERG NOW DISNEY'S CHAIRMAN AND STUDIO CHIEF RESPECTIVELY MR MECHANIC AND FOX'S MR CHERNIN ARE FRIENDS HAVING NEGOTIATED PAY TELEVISION CONTRACTS TOGETHER WHEN MR CHERNIN WAS A TOP EXECUTIVE AT VIACOM INC'S SHOWTIME SERVICE ANN DALY PRESIDENT OF DOMESTIC HOME VIDEO IS THOUGHT TO BE THE FAVORITE TO REPLACE MR MECHANIC IN HIS HOMEVIDEO RESPONSIBILITIES RICHARD JOHNSON HEAD OF INTERNATIONAL HOME VIDEO IS ANOTHER KEY VIDEO EXECUTIVE AT DISNEY IT'S POSSIBLE THAT DICK COOK HEAD OF DOMESTIC THEATRICAL DISTRIBUTION AT DISNEY WILL TAKE OVER INTERNATIONAL AS WELL THE EXECUTIVE CHANGE IS SAID TO HAVE FLARED UP SUDDENLY JUST LAST WEEK IT SURFACED IN SATURDAY'S EDITIONS OF THE LOS ANGELES TIMES 9309270093 930927 EC APPROVES ACCORD BETWEEN SOGEFI SPA AND ARVIN INDUSTRIES SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION CLEARED AN AUTOEXHAUSTSYSTEMS JOINT VENTURE BETWEEN ARVIN INDUSTRIES INC OF THE US AND ITALY'S SOGEFI SPA CONTROLLED BY ITALIAN FINANCIER CARLO DE BENEDETTI UNDER EC MERGER RULES IN A STATEMENT THE COMMISSION SAID THE LINKUP DIDN'T CREATE OR STRENGTHEN A DOMINANT POSITION ON THE EUROPEAN FREE REPLACEMENTCAREXHAUST MARKET THE COMBINED MARKET SHARE OF THE PARTIES DOES NOT REACH ANY LEVEL CLOSE TO DOMINANCE IT SAID THE MARKET IS CHARACTERIZED BY STRONG COMPETITION AND A VERY LARGE NUMBER OF SMALLER COMPETITORS THE COMMISSION ADDED UNDER THE TERMS OF THE ACCORD ARVIN WILL TRANSFER UK UNIT TIMEX EXHAUST SYSTEMS AND DUTCH MASTERPARTS TO THE EQUALLY CONTROLLED JOINT VENTURE WHILE SOGEFI TRANSFERS ITALIAN SUBSIDIARY ANSA MARMITTE AND ETABLISSEMENTS ROSI SA OF FRANCE UNDER EC LAW THE COMMISSION MUST REVIEW MERGERS AND OTHER ACCORDS BETWEEN LARGE COMPANIES TO ENSURE THEY DON'T HARM COMPETITION WITHIN THE COMMUNITY THE COMMISSION HAS THE POWER TO BLOCK OR ALTER AGREEMENTS THAT CREATE OR STRENGTHEN DOMINANT POSITIONS ON THE EC MARKET 9309270091 930927 RENEWED INTEREST AMONG FOREIGNERS FUELS RALLIES IN SCANDINAVIAN MARKETS BY STEPHEN D MOORE STAFF REPORTER OF THE WALL STREET JOURNAL STOCKHOLM US INVESTOR GEORGE SOROS MADE HEADLINES IN SWEDEN EARLY THIS MONTH BY DISCLOSING THAT HIS QUANTUM FUND HAD SNAPPED UP A BIG STAKE IN EMBATTLED INSURER AB SKANDIA THE PUBLICITY PUZZLED MANY INTERNATIONAL INVESTORS AFTER ALL MR SOROS HAD DABBLED IN SCANDINAVIAN EQUITY MARKETS FOR YEARS AS PART OF HIS RENOWNED BARGAINHUNTING AMONG PERIPHERAL EQUITY MARKETS AROUND THE WORLD BUT FEW SWEDES PAID ATTENTION BACK THEN BECAUSE STRICT LEGISLATIVE CURBS GUARANTEED THAT FOREIGN INVESTORS REMAINED MARGINAL PLAYERS TODAY HOWEVER THOSE PROTECTIONIST RESTRICTIONS ARE GONE AND WITH DOMESTIC INVESTORS SHORT OF CASH AGGRESSIVE PURCHASES BY OUTSIDERS SUCH AS MR SOROS HAVE FUELED BLISTERING STOCK MARKET RALLIES THROUGHOUT SCANDINAVIA THE MAIN ATTRACTION FOR FOREIGNERS IN SWEDEN AND FINLAND HAS BEEN THE PROMISE OF CORPORATE PROFIT EXPLOSIONS IN THE WAKE OF MASSIVE CURRENCY DEVALUATIONS LAST YEAR WHICH DRAMATICALLY STRENGTHENED EXPORTERS' INTERNATIONAL COMPETITIVE CLOUT ALMOST OVERNIGHT AT THE SAME TIME NORWAY'S OILDEPENDENT ECONOMY HAS EMERGED AS ONE OF THE HEALTHIEST IN EUROPE AND THE ROBUST NORWEGIAN KRONE INSURES THAT INTERNATIONAL INVESTORS' PAPER PROFITS FROM NORWEGIAN STOCKS AREN'T BADLY DILUTED WHEN EXCHANGED BACK TO CURRENCIES SUCH AS THE DOLLAR OR GERMAN MARK NONETHELESS WITH THE HELSINKI MARKET UP 657 OSLO 465 AND STOCKHOLM 402 SO FAR THIS YEAR THE BIG QUESTION IS WHETHER SCANDINAVIAN MARKETS ARE RUNNING OUT OF STEAM WITH THE CORPORATE PROFIT SURGE ALREADY DISCOUNTED AT THESE LEVELS INVESTMENT STRATEGIES HINGE ON HOW ANALYSTS ASSESS A VOLATILE CONCOCTION OF INTEREST RATES OIL PRICES AND POSSIBLE POLITICAL TURMOIL OVER THE NEXT 12 TO 18 MONTHS WE THINK FUNDAMENTALS IN THE NORDIC COUNTRIES LOOK BETTER THAN CONTINENTAL EUROPEAN MARKETS LIKE GERMANY OR FRANCE SAYS CHRISTINA CARLSTEN AN ECONOMIST WITH GENEVABASED BANQUE SCANDINAVE EN SUISSE THE SCANDINAVIAN COUNTRIES ENTERED GLOBAL DOWNTURN EARLIER THAN CONTINENTAL EUROPE AND WITH FLOATED CURRENCIES GIVING INDUSTRY IN SWEDEN AND FINLAND A BIG BOOST IT LOOKS LIKE THE WORST IS OVER FLEMING INVESTMENT MANAGEMENT REMAINS OVERWEIGHT IN BOTH SWEDISH AND NORWEGIAN STOCKS ACCORDING TO STEVE BATES HEAD OF THE EUROPEAN PORTFOLIO GROUP AT THE BIG BRITISH FIRM MOST OF FLEMING'S MONEY WINDS UP IN SWEDEN HOWEVER SWEDEN IS REALLY THE ONLY WAY FOR A BIG INTERNATIONAL INVESTOR CAN GET ENOUGH EXPOSURE TO PLAY THE SCANDINAVIAN TURNABOUT AS IT WERE ALTHOUGH I ADMIT SWEDEN IN AGGREGATE ECONOMIC TERMS IS THE LAGGARD IN THE REGION BY CONTRAST MORGAN STANLEY & CO AN EARLY BULL ON SCANDINAVIAN STOCKS NOW RECOMMENDS THAT CLIENTS SHIFT FUNDS BACK TO CONTINENTAL MARKETS I'D DISAGREE THAT THERE'S A LOT MORE TO GO FOR IN SCANDINAVIA THE ONE FACTOR PUSHING UP THE SWEDISH MARKET WAS WEAKNESS OF THE KRONA SAYS LONDONBASED EQUITY STRATEGIST RICHARD DAVIDSON CITING PRESSING DOMESTIC PROBLEMS INTEREST RATES HAVE STAYED UP TOO LONG AND THE GOVERNMENT'S DEBT POSITION IS COMPLETELY OUT OF CONTROL MR DAVIDSON CAUTIONS THAT THE KRONA LOOKS LIKE IT MIGHT BE STABILIZING AT ABOUT 510 OR SO AGAINST THE MARK WHICH COULD MEAN THE END OF SWEDEN'S OUTPERFORMANCE THE SWEDISH MARKET'S AFFAERSVAERLDEN GENERAL INDEX BUCKED WORRIES ABOUT POLITICAL UNREST IN RUSSIA TO CLIMB 11 LAST WEEK CLOSING AT 12792 ON FRIDAY BUT BOND AND FOREIGNEXCHANGE MARKETS STAYED JITTERY THE KRONA LANGUISHED AT RECORD LOWS AGAINST THE MARK AND INTEREST RATES CLIMBED ON WORRIES THE CENTRAL BANK MIGHT BE FORCED TO INCREASE ITS KEY MONEYMARKET RATE TO STEADY THE CURRENCY HARDLY ANYONE DOUBTS THAT SWEDEN'S ECONOMY WILL EXPAND NEXT YEAR REVERSING THREE CONSECUTIVE YEARS OF DECLINING GROSS NATIONAL PRODUCT A RECENT FORECAST FROM SVENSKA HANDESLBANKEN A BIG STOCKHOLM BANK PROJECTED GROWTH OF 14 NEXT YEAR COMPARED WITH AN ESTIMATED 25 GNP DECLINE THIS YEAR HANDELSBANKEN ECONOMISTS EXPECT EXPORTS TO SOAR 107 NEXT YEAR NEARLY DOUBLE THE RESPECTABLE 54 RISE THIS YEAR IN FACT HANDELSBANKEN BELIEVES SWEDEN WILL PILE UP THE BIGGEST PERCAPITA TRADE SURPLUS OF ANY INDUSTRIAL COUNTRY NEXT YEAR CLOUDING THAT OUTLOOK IS THE DISMAL STATE OF GOVERNMENT FINANCES HANDELSBANKEN ESTIMATES THAT THE GOVERNMENT'S BUDGET DEFICIT WILL SPURT TO 225 BILLION SWEDISH KRONOR 279 BILLION OR 155 OF GNP IN THE CURRENT FISCAL YEAR ENDING NEXT JUNE 30 FROM 168 BILLION KRONOR OR 117 OF GNP THE PREVIOUS YEAR AS A RESULT THE PUBLICSECTOR BORROWING REQUIREMENT WILL JUMP TO 196 OF GNP IN FISCAL 1994 FROM 145 A YEAR EARLIER RAISING THE NATIONAL DEBT TO 125 TRILLION KRONOR OR 856 OF GNP FROM 961 BILLION KRONOR OR 67 OF GNP ECONOMISTS WARN THAT WITH UNEMPLOYMENT AT RECORD LEVELS OF NEARLY 14 INCLUDING SWEDES IN STATEFINANCED JOB PROGRAMS THE STRAIN ON GOVERNMENT COFFERS WON'T EASE ANYTIME SOON WORRIED INVESTORS WILL BE WATCHING CLOSELY THIS WEEK AS FINANCE MINISTER ANNE WIBBLE HAS PROMISED TO PRESENT AN UPDATED PROJECTION OF THE FISCAL 1994 BUDGET DEFICIT AND THE GOVERNMENT BORROWING REQUIREMENT 9309270090 930927 NAFTA CLEARS HURDLE IN APPELLATE COURT BUT FACES TOUGH BATTLE IN CONGRESS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NORTH AMERICAN FREE TRADE AGREEMENT SURVIVED A NEARDEATH EXPERIENCE WHEN A FEDERAL APPEALS COURT PANEL RULED THAT THE ACCORD WAS EXEMPT FROM FORMAL ENVIRONMENTAL REVIEW BUT THE PACT STILL FACES A BLOODY BATTLE FOR SURVIVAL IN CONGRESS AND THE WHITE HOUSE IS PREPARING TO ESCALATE ITS ATTACK PRESIDENT CLINTON AND MEMBERS OF HIS ADMINISTRATION SEIZED ON THE COURT VICTORY TO DECLARE THAT MOMENTUM IN THE NAFTA FIGHT WAS FINALLY MOVING IN THEIR DIRECTION BASED ON CALLS AND CONVERSATIONS THAT I HAVE BEEN HAVING WITH MEMBERS OF CONGRESS THE PRESIDENT SAID I'M BEGINNING TO FEEL A LITTLE BETTER ABOUT THIS AGREEMENT BUT NAFTA OPPONENTS VOWED TO USE THE COURT DECISION TO PORTRAY THE PACT'S SUPPORTERS AS SECRETIVE AND ELITIST THE RULING MAKES US ASK OURSELVES WHAT DO THEY HAVE TO HIDE' SAID JANE PERKINS PRESIDENT OF THE ENVIRONMENTAL GROUP FRIENDS OF THE EARTH ON FRIDAY THE APPEALS COURT PANEL RULED 30 THAT THE ADMINISTRATION DIDN'T NEED TO PREPARE AN ENVIRONMENTAL IMPACT STATEMENT FOR THE TRADE PACT A PROCESS THAT COULD HAVE TAKEN MONTHS IF NOT YEARS AND CAST NAFTA AS AN ENVIRONMENTAL LIABILITY ALL THE WHILE NAFTA OPPONENTS WOULD HAVE CONTINUED THEIR CRUSADE AND TRIED TO CONVINCE THE ADMINISTRATION IT WAS BETTER OFF DROPPING THE PACT AND CONCENTRATING ON HEALTH CARE AND OTHER ISSUES THE RULING OVERTURNED A DECISION IN JUNE BY DISTRICT JUDGE CHARLES RICHEY ORDERING SUCH A REVIEW WHICH HAD STUNNED THE ADMINISTRATION AND ENERGIZED NAFTA OPPONENTS ON FRIDAY THE APPEALS COURT PANEL RULED THAT NAFTA WAS A PRESIDENTIAL ACTION AND WASN'T SUBJECT TO SUITS BY PRIVATE GROUPS THEREFORE THE GROUPS COULDN'T COMPEL THE ADMINISTRATION TO PREPARE AN ENVIRONMENTAL IMPACT STATEMENT NAFTA'S FATE NOW RESTS IN THE HANDS OF THE POLITICAL BRANCHES APPELLATE COURT CHIEF JUDGE ABNER MIKVA WROTE IN THE MAJORITY OPINION THE JUDICIARY HAS NO ROLE TO PLAY PATTI GOLDMAN A LAWYER FOR PUBLIC CITIZEN THE CONSUMER GROUP THAT BROUGHT THE CASE SAID NAFTA OPPONENTS WOULD ASK THE SUPREME COURT TO REVIEW THE APPELLATE DECISION BUT EVEN IF THE HIGH COURT WERE TO HEAR THE CASE IT WOULDN'T ISSUE AN OPINION UNTIL NEXT SPRING WELL AFTER CONGRESS'S EXPECTED VOTE ON NAFTA IN MIDDECEMBER FOR NAFTA SHE ACKNOWLEDGED THE CASE WOULD BE MOOT INSTEAD SHE SAID SHE WAS SEEKING A RULING THAT WOULD SHAPE TRADE AGREEMENTS IN THE FUTURE ADMINISTRATION OFFICIALS WERE JUBILANT US TRADE REPRESENTATIVE MICKEY KANTOR WHO SHARED A PODIUM WITH FIVE OTHER SENIOR OFFICIALS AT THE WHITE HOUSE SAID THE RICHEY DECISION RAISED IN THE MINDS OF MANY THE FEELING THAT NAFTA COULD HAVE AN ADVERSE EFFECT ON THE ENVIRONMENT NOTHING COULD BE FURTHER FROM THE TRUTH HE SAID THE WORLD BANK WOULD ANNOUNCE TOMORROW THAT IT PLANNED TO PROVIDE 3 BILLION IN FINANCING TO CLEAN UP THE POLLUTED USMEXICO BORDER THE ADMINISTRATION ALSO WAS PREPARING TO RELEASE ITS OWN LESS FORMAL REVIEW OF NAFTA'S ENVIRONMENTAL EFFECTS HE SAID BUT THE ADMINISTRATION'S OWN DECISIONS HAVE ALREADY DELAYED A NAFTA VOTE AND RAISED DOUBT ABOUT ITS COMMITMENT TO THE TRADE PACT WHICH WOULD LIBERALIZE TRADE AND INVESTMENT WITH MEXICO AND CANADA OVER 15 YEARS AT THE TIME OF JUDGE RICHEY'S DECISION A VOTE ON NAFTA WAS EXPECTED IN MIDOCTOBER BUT WHITE HOUSE OFFICIALS DELAYED THEIR NAFTA LOBBYING BY ABOUT TWO MONTHS IN LARGE PART BECAUSE THEY WERE AFRAID NAFTA'S UNPOPULARITY COULD COST THEM VOTES IN THIS SUMMER'S CONGRESSIONAL BATTLE OVER DEFICIT REDUCTION MOREOVER NEGOTIATIONS OVER NAFTA SIDE DEALS ON ENVIRONMENTAL AND LABOR ENFORCEMENT DRAGGED ON LONGER THAN EXPECTED DURING WHICH THE PRESIDENT WAS LARGELY SILENT ABOUT NAFTA THE EFFECT WAS TO CREATE DOUBTS ABOUT THE ADMINISTRATION'S RESOLVE TO FIGHT FOR THE TRADE ACCORD TIME WAS LOST THE OPPONENTS DEVELOPED MOMENTUM SAID SEN BILL BRADLEY THE NEW JERSEY DEMOCRAT WHO IS HELPING TO SHEPHERD NAFTA THROUGH THE SENATE MR CLINTON'S NAFTA OFFICE IS QUIETLY BEEFING ITSELF UP FORMER WHITE HOUSE POLITICAL DIRECTOR RAHM EMANUEL HAS BEEN INSTALLED AS A DE FACTO CHIEF OF STAFF FOR AN OPERATION THAT WILL HAVE 20 EMPLOYEES BY THE END OF THE WEEK FACING OPPOSITION FROM MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI AND DEMOCRATIC WHIP DAVID BONIOR OF MICHIGAN WHO CONTROL THE PARTY MACHINERY IN THE HOUSE THE WHITE HOUSE HAS QUICKLY PUT TOGETHER A SHADOW WHIP ORGANIZATION TO ROUND UP VOTES WITH CABINET MEMBERS LEADING THE WAY EACH CABINET SECRETARY HAS BEEN ASSIGNED A LIST OF CONGRESSMEN WHOM HE OR SHE IS RESPONSIBLE FOR LOBBYING BY THIS MORNING EACH SECRETARY ALSO WILL HAVE A NAFTA NOTEBOOK CONTAINING DETAILS ON HOW THE AGREEMENT WILL AFFECT BUSINESSES IN THE DISTRICTS OF THE CONGRESSMEN THEY ARE LOBBYING ON OCT 5 THE WHITE HOUSE WILL INVITE BUSINESS AND POLITICAL LEADERS FROM NEW ENGLAND FOR BRIEFINGS ON HOW NAFTA CAN HELP THEIR AREA OTHER OPINION LEADER DAYS WILL BE HELD FOR OTHER REGIONS THE WHITE HOUSE ALSO PLANS TO HOLD A PRODUCTS DAY IN WHICH BUSINESSMEN SHOWCASE THE PRODUCTS THAT ARE NOW EXPORTED TO MEXICO AND WOULD BE GREATLY INCREASED UNDER NAFTA AND USA NAFTA A GROUP SPONSORED BY BUSINESS LEADERS IS SENDING LETTERS TO EVERY MEMBER OF CONGRESS LISTING THE COMPANIES IN THEIR DISTRICTS THAT SUPPORT NAFTA AND HOW MANY PEOPLE THEY EMPLOY MEANWHILE MR KANTOR HAS BEEN NEGOTIATING WITH LAWMAKERS FROM DURUM WHEAT AND SUGARPRODUCING STATES TO FIGURE OUT WAYS TO PROTECT THOSE CROPS FROM COMPETITION FROM CANADA AND MEXICO AND BLUNT OPPOSITION TO NAFTA YOU'VE GOT WHEAT PROBLEMS IN THE NORTH SUGAR AND CITRUS PROBLEMS IN THE SOUTH SAID SEN BRADLEY YOU SOLVE THOSE AND YOU GET A LOT OF VOTES THAT ARE IN THE U' FOR UNDECIDED COLUMN BUT THE NAFTA OPPONENTS AN ODD ALLIANCE OF SUPPORTERS OF ROSS PEROT AND SUCH TRADITIONAL DEMOCRATIC CONSTITUENCIES AS ORGANIZED LABOR AND ENVIRONMENTAL ACTIVISTS HAVE BEEN ORGANIZING FOR MONTHS AROUND THE COUNTRY ONE OF THEIR MAIN PITCHES IS THAT NAFTA WAS NEGOTIATED IN SECRET FOR THE BENEFIT OF MULTINATIONAL BUSINESSES WHICH COULD THEN FLEE TO MEXICO TO AVOID STRICT US ENVIRONMENTAL LAWS THEY'LL BE SURE TO TRY TO EXPLOIT THE ADMINISTRATION'S RESISTANCE TO COMPILING AN ENVIRONMENTAL IMPACT STATEMENT AS ANOTHER EXAMPLE OF PERFIDY SECRECY IS SOMETHING THAT THE PUBLIC UNDERSTANDS PROBABLY BETTER THAN IT UNDERSTANDS NAFTA SAID JOAN CLAYBROOK PRESIDENT OF PUBLIC CITIZEN MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9309270089 930927 ALLSTATE UNIT PURCHASE PLANNED BY INSURANCE AUTO AUCTIONS INC NORTH HOLLYWOOD CALIF INSURANCE AUTO AUCTIONS INC A BROKER AND SELLER OF WRECKED CARS SAID IT AGREED TO BUY THE TECHCOR INC UNIT OF ALLSTATE INSURANCE CO WHICH IS IN THE SAME BUSINESS INSURANCE AUTO AUCTIONS HAS OPERATIONS IN CALIFORNIA ARIZONA OREGON AND HAWAII THAT PROCESS AND SELL TOTALLOSS CARS AND THOSE RECOVERED AFTER THEFT THE COMPANY SAID TECHCOR'S RESEARCH TRAINING AND APPRAISAL OPERATIONS AREN'T INCLUDED IN THE PROPOSED ACQUISITION NO TERMS WERE DISCLOSED BUT INSURANCE AUTO AUCTIONS SAID THE PURCHASE WOULD BE PAID FOR WITH ITS STOCK TECHCOR OPERATES FIVE AUTOMOTIVE SALVAGE POOLS THAT BUY AND SELL CARS IN ILLINOIS MICHIGAN AND NEW JERSEY THE COMPANY BASED IN WHEELING ILL PROCESSES MORE THAN 75000 VEHICLES A YEAR 9309270088 930927 TECHNOLOGY IBM AGREES TO MAKE PCS FOR CONCERN THAT RIVALS ITS MAILORDER PRODUCT LINE BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTERNATIONAL BUSINESS MACHINES CORP HAS AGREED TO MANUFACTURE PERSONAL COMPUTERS FOR A LARGE MAILORDER FIRM THAT WILL COMPETE AGAINST IBM'S OWN PRODUCT LINE STEPPING UP BIG BLUE'S STRATEGY OF MAKING DESKTOP MACHINES FOR ITS RIVALS IBM IS EXPECTED TO ANNOUNCE THE PACT TODAY WITH INMAC CORP WHICH HAS MAILORDER SALES OF MORE THAN 340 MILLION AND WILL SELL POWERFUL IBMMADE PCS FOR PRICES STARTING AT ABOUT 1300 BUT RATHER THAN CARRY THE IBM LABEL THE NEW MACHINES WILL BE SOLD UNDER THE NAME INMAC INSIGNIA WHILE THE IBMMADE LINE WILL GIVE THE COMPANY ANOTHER AVENUE FOR COMPETING AGAINST COMPANIES SUCH AS COMPAQ COMPUTER CORP DELL COMPUTER CORP AND GATEWAY 2000 IT ALSO THREATENS TO UPSET SOME IBM DEALERS AND TO CUT INTO SALES OF IBM'S OWN MAILORDER LINE AMBRA MOREOVER THE MANUFACTURING DEAL COULD TARNISH IBM'S IMAGE FOR QUALITY SHOULD INMAC RUN INTO PROBLEMS DELIVERING ORDERS TO ITS CUSTOMERS THE INMAC AGREEMENT IS ONE OF THE MOST EXTENSIVE YET IN IBM'S AGGRESSIVE PUSH INTO THE SOCALLED OEM BUSINESS FOR ORIGINAL EQUIPMENT MANUFACTURER BY WHICH IT MAKES EQUIPMENT SOLD UNDER OTHER NAMES THE IDEA WOULD HAVE BEEN ALL BUT UNHEARD OF IN THE PAST BUT IBM NOW SEEMS INTENT ON COMPETING IN AS MANY PRICE RANGES WITH AS MANY VARIED PRODUCTS AS POSSIBLE IBM'S PACT WITH INMAC SANTA CLA CALIF THREATENS TO CREATE CUSTOMER CONFUSION OVER BRAND VALUE AND ITS PURITY COMPLAINED RICK INATOME CHAIRMAN OF INACOM CORP ONE OF IBM'S LARGEST RESELLERS RATHER THAN CHURNING OUT CHEAP COMPUTERS FOR RIVALS HE ADDED IBM SHOULD FOCUS ON GETTING COSTS DOWN FOR ITS OWN PRODUCT LINES EVEN IBM OFFICIALS WORRY A LITTLE OVER THE POTENTIAL IMAGE PROBLEMS BRUCE CLAFLIN PRESIDENT OF THE MARKETING DIVISION OF IBM PERSONAL COMPUTER CO SAID IBM MUST ENSURE INMAC AND OTHERS DON'T ADVERTISE THEIR WARES AS IBM PRODUCTS ONE THING I WORRY ABOUT IS THAT IBM STANDS FOR SOMETHING MR CLAFLIN SAID IF YOU BUY ONE OF THESE PRODUCTS THAT WE MANUFACTURE MADE TO SOMEBODY ELSE'S SPECIFICATIONS I DO WORRY THAT THE IBM BRAND NAME CAN'T GET CONFUSED WITH THAT PRODUCT YET THE POTENTIAL FOR CONFUSION IS HIGH AS THE AGREEMENT ALLOWS INMAC IS PLANNING TO ADVERTISE IN ITS CATALOGS THAT IBM MAKES THE COMPUTERS IN ADDITION BIG BLUE ALREADY HAS ENDURED SOME BAD PUBLICITY FROM SHIPPING DELAYS IN THE AMBRA LINE DESPITE IBM'S DESIRE TO DISTANCE ITSELF FROM AMBRA BY GIVING THE NEW BUSINESS A DIFFERENT NAME IT WAS IBM THAT CUSTOMERS FUMED AT WHEN THEIR COMPUTERS WERE LATE IN ARRIVING RICHARD ZWEITCHKENBAUM OF INTERNATIONAL DATA CORP A RESEARCH FIRM SAID IBM IS AIMING TO HIT 3 BILLION IN SALES NEXT YEAR FOR ITS OEM BUSINESS IT'S POWER THROUGH MANUFACTURING THERE ARE VERY FEW COMPANIES WITH THE RESEARCH AND DEVELOPMENT AND MANUFACTURING CLOUT OF IBM AND GETTING SMALLER VENDORS TO LOOK AT IBM PUTS THE COMPANY IN A BETTER POSTION HE SAID 9309270087 930927 INTERNATIONAL WORLDWIDE COMPILED BY RICHARD L HOLMAN A GROUP OF EUROPEAN ACADEMICS ASSOCIATES FOR RESEARCH AND SUBSTANCE ENJOYMENT SAID ZEALOUS HEALTH WORKERS ARE MISLEADING THE PUBLIC AND TRYING TO RUIN PEOPLE'S QUALITY OF LIFE THE GROUP SAID THAT TO RELAX OR EASE STRESS PEOPLE COMMONLY TURN TO COFFEE TEA ALCOHOLIC BEVERAGES CIGARETTES AND CHOCOLATES MANY OF US HOLD THE VIEW THAT IS A PERSON'S RIGHT TO ENJOY THESE PLEASURES AND WE ARE VERY CONCERNED ABOUT THIS PURITANICAL MOVEMENT AGAINST PLEASURE SAID DAVID WARBURTON A PHARMACOLOGY PROFESSOR AT READING UNIVERSITY IN ENGLAND PEOPLE SHOULD BE ALLOWED TO LIVE A LIFE OF MODERATED HEDONISM THE GROUP SAID THE EUROPEAN COMMUNITY IS ONE OF THE MAIN PURITANICAL BODIES DICTATING PUBLICHEALTH POLICY MR WARBURTON A CONTRIBUTOR TO THE US SURGEON GENERAL'S REPORT ON EFFECTS OF SMOKING SAID THE PUBLIC WAS OFTEN DUPED BY SURVEYS AND HEALTH PROMOTIONS BASED ON MISINFORMATION TRANSPORT WORKERS IN NICARAGUA ENDED A CRIPPLING FIVEDAY STRIKE AFTER THE GOVERNMENT AGREED TO THEIR DEMANDS INCLUDING A GASOLINE PRICE FREEZE AND A ROLLBACK OF VEHICLE TAXES IMPOSED TO HELP FINANCE REBUILDING THE COUNTRY THE POPULARLY SUPPORTED PROTEST BY BUS TAXI AND TRUCK DRIVERS WHICH LED TO FATAL CONFLICTS HAD FANNED FEARS OF RENEWED CIVIL WAR THE STRIKE CAME AMID EFFORTS TO BREAK A DEADLOCK ON TALKS ABOUT HOW TO DEAL WITH GUERRILLA ATTACKS POLITICAL KIDNAPPINGS A FAILING ECONOMY AND HIGH UNEMPLOYMENT IN A CRACKDOWN ON MONEY LAUNDERING GERMANY'S PARLIAMENT PASSED A LAW REQUIRING BANKS TO RECORD THE NAMES OF ANYONE WHO DEPOSITS MORE THAN 12000 IN CASH AND TO ALERT POLICE OF MONEY POSSIBLY RELATED TO DRUG DEALING OR OTHER CRIMES THE MEASURE TO HELP ENFORCE 1992 LEGISLATION THAT CRIMINALIZED MONEYLAUNDERING IS PART OF CHANCELLOR HELMUT KOHL'S CAMPAIGN AGAINST MOBS LINKED TO A RISING GERMAN CRIME RATE THE ISSUE COULD DOMINATE NEXT YEAR'S ELECTIONS FINLAND'S PARLIAMENT REJECTED BUILDING A FIFTH NUCLEAR POWER PLANT WHICH PROPONENTS SOUGHT TO HELP LIFT THE ECONOMY OUT OF RECESSION NUCLEAR GENERATORS ALREADY PRODUCE 30 OF FINLAND'S ELECTRICITY BUT LAST NOVEMBER LEGISLATORS BARRED CONSTRUCTION OF ANY FURTHER PLANTS THREE MONTHS LATER THOUGH THE GOVERNMENT APPROVED AN APPLICATION TO BUILD A REACTOR IN REVERSING THAT MOVE AND MAINTAINING THEIR BAN ON FURTHER ATOMIC DEVELOPMENT LAWMAKERS WERE SWAYED PARTLY BY PROBLEMS IN STORING HAZARDOUS WASTE IN A NEW GALLUP POLL 40 OF FINNS OPPOSED EXPANDING NUCLEAR POWER 30 APPROVED 25 WERE INDIFFERENT AND 5 DIDN'T HAVE AN OPINION ALGERIA UNVEILED AN INVESTMENT CODE THAT IT SAID WOULD ADVANCE THE NORTHERN AFRICAN COUNTRY'S SWITCH TO A MARKET ECONOMY FROM CENTRAL PLANNING THE CODE DOESN'T DISTINGUISH BETWEEN FOREIGN AND DOMESTIC INVESTMENT AND PERMITS FOREIGN INVESTMENT IN EVERY SECTOR SOME HAD BEEN RESTRICTED IT REDUCES RED TAPE SPECIFIES INVESTMENT PROTECTION AND PROVIDES FOR DISPUTE RESOLUTION ALGERIA BESET BY HIGH UNEMPLOYMENT HEAVY DEBT AND SECULARRELIGIOUS TENSIONS HOPES ITS PROXIMITY TO EUROPEAN AND MIDEAST MARKETS WILL ATTRACT INVESTORS FROM ABROAD BRITISH CELEBRITIES NEXT FEBRUARY WILL LEAD 100 PEOPLE ON THE FIRST SPONSORED WALK THROUGH THE TUNNEL BEING BUILT BENEATH THE ENGLISH CHANNEL THE 31MILE CHUNNEL WALK TO FRANCE A BENEFIT FOR BRITISH CHARITIES IS EXPECTED TO TAKE 13 HOURS TO COMPLETE ALL WORK IN THE 12 BILLION TUNNEL SCHEDULED TO OPEN NEXT MAY WILL BE STOPPED FOR THE EVENT WHICH CHARITIES HOPE WILL RAISE MILLIONS OF DOLLARS THE BANK OF JAPAN SAID ECONOMIC GROWTH REMAINS WEAK WITHOUT ANY CLEAR INDICATIONS OF RECOVERY SOON DESPITE ITS MONETARY EASING THE CENTRAL BANK SAID BUSINESS INVESTMENT REMAINS STAGNANT JAPAN'S RAINY SUMMER SUBDUED CONSUMER SPENDING MANUFACTURERS' CAPITAL OUTLAYS AND OUTPUT CONTINUED TO FALL THOUGH INVENTORIES HAVE BEEN TRIMMED EXPORTS SLOWED AS THE YEN APPRECIATED THE RECESSION WEAKENED IMPORTS WHACKED CORPORATE EARNINGS AND TAMED LABOR DEMANDS IN THE QUARTER ENDED SEPT 30 THE FINANCE MINISTRY SAID BUSINESS SENTIMENT EBBED FURTHER IN THE AGENCY'S QUARTERLY SURVEY OF 9600 BIG COMPANIES THE RATIO FORECASTING A BUSINESS PICKUP TO THOSE SEEING A DECLINE WORSENED TO MINUS 186 FROM MINUS 12 IN THE PREVIOUS QUARTER MEANWHILE JAPAN'S MOTORVEHICLE OUTPUT IN AUGUST FELL 74 TO 731898 UNITS THE FEWEST FOR THAT MONTH IN A DECADE AND THE 11TH CONSECUTIVE MONTH OF YEARTOYEAR DECLINES DEPARTMENT STORE SALES SHRANK 46 TO 558 BILLION THE 18TH MONTH OF RETREATS CHAIN STORE SALES FELL 21 TO 1198 BILLION THE 12TH CONSECUTIVE MONTHLY SETBACK DESPITE THE MONETARY EASING AND A GOVERNMENT STIMULUS PACKAGE SLUGGISH DEMAND IS SEEN THROUGH SPRING ELEVEN ELECTRONICS COMPANIES IN TAIWAN INVOLVED IN DEVELOPING A HIGHDEFINITION TELEVISION SYSTEM SAID HDTV BROADCASTS WILL BEGIN IN THE COUNTRY IN 1998 NIPPON TELEGRAPH & TELEPHONE CORP OF JAPAN WILL TEST A SERVICE TO PREVENT HARASSMENT CALLS DIALING A SPECIAL THREEDIGIT NUMBER BLOCKS FURTHER CALLS FROM THE NUMBER THE HARASSING CALLER USED 9309270086 930927 WHO'S NEWS TRANSLUX CORP TRANSLUX CORP NORWALK CONN RONALD TURCOTTE PRESIDENT AND CHIEF OPERATING OFFICER RESIGNED FOR UNDISCLOSED PERSONAL REASONS THE COMPANY SAID IT SAID VICTOR LISS VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME BOTH POSITIONS MR TURCOTTE 40 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER LESS THAN TWO YEARS AGO SAID RICHARD BRANDT CHAIRMAN TRANSLUX WHICH PROVIDES INFORMATION DISPLAYS AND OWNS MOVIE THEATERS ALSO SAID ROBERT BUDD WAS ELECTED EXECUTIVE VICE PRESIDENT HE PREVIOUSLY SERVED AS SENIOR VICE PRESIDENT SALES AND MARKETING