PACIFIC TELESIS GROUP AND MCCAW CELLULAR COMMUNICATIONS INC WON REGULATORY APPROVAL TO JOINTLY OWN AND OPERATE CELLULAR TELEPHONE OPERATIONS IN FOUR METROPOLITAN AREAS PACTEL CORP A PACIFIC TELESIS UNIT AND MCCAW AGREED TO THE 5050 JOINT VENTURE IN 1991 THE DEAL IS EXPECTED TO CLOSE BY OCTOBER THE AGREEMENT COVERS CELLULAR PROPERTIES IN SAN FRANCISCO SAN JOSE CALIF DALLAS AND KANSAS CITY IT WILL CREATE TWO LARGE CELLULAR CLUSTERS COVERING 92 MILLION POTENTIAL CUSTOMERS PACTEL WILL PURCHASE CELLULAR SYSTEMS IN WICHITA AND TOPEKA KAN FOR 100 MILLION FROM MCCAW IN ADDITION PACTEL MOBILE SERVICES WHICH RESELLS CELLULAR SERVICE IN THE SAN FRANCISCO BAY AREA WILL BECOME PART OF MCCAW'S BAY AREA CELLULAR TELEPHONE CO PACTEL SAID ITS CURRENT CUSTOMERS WILL NOTICE NO CHANGE IN SERVICE BUT THEIR BILLS WILL BEAR THE CELLULAR ONE NAME MCCAW IS THE LARGEST CELLULAR PROVIDER IN THE US 9308120026 930812 BUSINESS BRIEF MEDCO CONTAINMENT SERVICES INC THREE SHAREHOLDER LAWSUITS FILED OVER MERCK MERGER THREE SHAREHOLDER SUITS HAVE BEEN FILED AGAINST MEDCO CONTAINMENT SERVICES INC ITS BOARD AND MERCK & CO IN CONNECTION WITH THE RECENTLY ANNOUNCED MERGER OF THE TWO COMPANIES THE LAWSUITS FILED IN STATE COURT IN WILMINGTON DEL ALLEGE VARIOUS VIOLATIONS OF FIDUCIARY DUTY INCLUDING FAILURE TO MAKE ADEQUATE DISCLOSURES FAILURE TO ADEQUATELY EXPLORE OTHER FORMS OF BUSINESS ALLIANCE IMPROPER FEES PAYABLE TO CERTAIN EXECUTIVES AND UNFAIRNESS IN THE STRUCTURE OF THE MERGER THE SHAREHOLDERS SAY THEY WANT A MEANINGFUL CHOICE BETWEEN CASH AND MERCK STOCK THEY'RE ASKING THE COURT TO STOP THE MERGER IN ADDITION MEDCO SAID LAWSUITS HAVE BEEN FILED IN CALIFORNIA AGAINST IT AND SEVERAL DRUG COMPANIES AND WHOLESALERS ALLEGING ILLEGAL PRICE DISCRIMINATION MEDCO SAID THAT IT BELIEVES ALL THE LAWSUITS ARE WITHOUT MERIT AND THAT IT INTENDS TO DEFEND ITSELF VIGOROUSLY IT ADDED THAT IT EXPECTS THE SUITS TO HAVE NO MATERIAL ADVERSE IMPACT ON MEDCO OR ON ITS ABILITY TO COMPLETE THE MERGER 9308120025 930812 BUSINESS BRIEF GLENFED INC THRIFT AGENCY APPROVES UNIT'S ACCEPTANCERATE BID GLENDALE FEDERAL BANK A UNIT OF GLENFED INC SAID THE FEDERAL OFFICE OF THRIFT SUPERVISION APPROVED ITS BID TO REDUCE TO 80 FROM 90 THE MINIMUM ACCEPTANCE RATE ON AN EXCHANGE OFFER FOR ITS 775 CONVERTIBLE SUBORDINATED DEBENTURES IT IS THE SECOND TIME IN TWO WEEKS THAT THE THRIFT IN GLENDALE CALIF HAS AMENDED TERMS OF ITS PLANNED RECAPITALIZATION PROGRAM UNDER WHICH IT EXPECTS TO RAISE CASH AND STAY AFLOAT THE DEBENTURES ARE TO BE SWAPPED FOR A COMBINATION OF BANK COMMON STOCK CASH AND STOCK PURCHASE RIGHTS THE EXCHANGE OFFER IS SET TO EXPIRE AT MIDNIGHT EDT ON WEDNESDAY AUG 18 THE COMPANY HAS HAD TROUBLE LOCATING DEBENTURE HOLDERS BECAUSE THE DEBT INSTRUMENTS WERE ORIGINALLY SOLD IN THE EUROPEAN MARKET AS BEARER BONDS FOR WHICH NO REGISTRY EXISTS LAST WEEK THE COMPANY ANNOUNCED IT WAS SWEETENING OTHER TERMS OF THE RECAPITALIZATION PLAN TO KEEP WARY INSTITUTIONAL INVESTORS FROM BOLTING 9308120023 930812 LEISURE & ARTS BOOKSHELF CHARLES PONZI'S DISCIPLE BY DONALD CHEW THE DUSTJACKET OF A SHORT HISTORY OF FINANCIAL EUPHORIA VIKING PRESS 110 PAGES 16 INFORMS US THAT AUTHOR JOHN KENNETH GALBRAITH IS TO ECONOMICS WHAT STEPHEN HAWKING IS TO THE COSMOS AN ASSURED TRUSTED VOICE THAT EXPLAINS THE WAY THINGS WORK BUT NO CLAIM COULD BE MORE MISLEADING WHILE MAKING MUCH OF HUMAN GREED AND CREDULITY THIS BOOK EXPLAINS ALMOST NOTHING ABOUT HOW OUR CAPITAL MARKETS WORK RANGING IN TIME FROM THE TULIP BUBBLE OF 17TH CENTURY HOLLAND THROUGH TO THE S&L FIASCO AND JUNK BOND COLLAPSE OF THE 1980S A SHORT HISTORY VIEWS FINANCIAL MARKETS AS PROPAGATING AN UNENDING SERIES OF DISASTERS IN MR GALBRAITH'S SCHEME OF THINGS CAPITALISTS ARE INCORRIGIBLE SCHEMERS AND INVESTORS THEIR UNFAILING DUPES FINANCIAL MARKETS THUS HAVE NO MEMORY AND THOUGH CREDITED WITH A MODEST ROLE IN FUNDING ECONOMIC DEVELOPMENT THEY ARE A PLAYGROUND FOR SPECULATORS WHO PRODUCE UNACCOUNTABLE GYRATIONS IN PRICES THAT END UP DEPRESSING ENTIRE ECONOMIES AND INFLICTING UNTOLD HUMAN MISERY EVEN THE NOTION THAT THERE ARE SOCIAL BENEFITS FROM FINANCIAL INNOVATION IS TREATED AS A PERNICIOUS ILLUSION ALL FINANCIAL INSTRUMENTS ARE VIEWED AS VARIATIONS ON CHARLES PONZI'S INFAMOUS SCHEME THE BOOK CONSISTS LARGELY OF A SERIES OF TALES MOST OF WHICH ARE DIVERTING ENOUGH THERE ARE VIRTUALLY NO DATA AND FEW CITATIONS OF OTHER ECONOMISTS' WORK TO DEFLECT THE ARGUMENT AND IMPEDE SMOOTH PASSAGE THROUGH THESE PAGES THE BOOK DOES LITTLE TO INFORM THE READER THAT THERE ARE FAIRLY PERSUASIVE ALTERNATIVE EXPLANATIONS BY FINANCIAL ECONOMISTS FOR MANY OF THE EPISODES CITED EXPLANATIONS CONSISTENT WITH COLLECTIVELY RATIONAL BEHAVIOR BY MARKET PARTICIPANTS THAT OFTEN END UP FOCUSING ON SOME GOVERNMENT OR REGULATORY DISTORTION OF NORMAL PRIVATE INCENTIVES MOST FINANCIAL ECONOMISTS AGREE FOR EXAMPLE THAT THE BASIC CAUSE OF THE S&L DEBACLE WAS FDIC GUARANTEES THAT WHEN COMBINED WITH DEREGULATION OF S&L ASSETS AND LOW CAPITAL REQUIREMENTS WERE A SURE PRESCRIPTION FOR TROUBLE RISKAVERSE DEPOSITORS RATIONALLY CONTINUED TO POUR THEIR FUNDS INTO INCREASINGLY RISKY S&LS AND RATIONAL IF OFTEN UNSCRUPULOUS S&L OPERATORS WITH LITTLE OF THEIR OWN OR THEIR SHAREHOLDER'S MONEY AT STAKE CONTINUED TO ATTRACT DEPOSITOR FUNDS TO BET THE RANCH IN A GAME CALLED HEADS I WIN TAILS THE TAXPAYERS LOSE IT IS IMPORTANT TO NOTE THE EXTENT TO WHICH MR GALBRAITH'S NOTIONS ARE CONTRADICTED BY THE WORK OF MOST MAINSTREAM ECONOMISTS MERTON MILLER FOR INSTANCE THE 1990 NOBEL LAUREATE HAS WRITTEN THAT THE STOCK MARKET CRASH OF OCTOBER 1987 MAY WELL HAVE BEEN THE BURSTING OF A RATIONAL BUBBLE BECAUSE COMMON STOCKS ARE SECURITIES WITH VERY LONG THEORETICALLY INFINITE DURATIONS STOCK PRICES CAN BE HIGHLY SENSITIVE TO VERY SMALL CHANGES IN INVESTOR EXPECTATIONS ABOUT CRITICAL VARIABLES LIKE INTEREST RATES AND FUTURE EARNINGS GROWTH RATES THERE WERE PLENTY OF DISTURBING POLITICAL AND ECONOMIC SIGNS IN OCTOBER 1987 THAT COULD HAVE TRIGGERED THE CRASH MR GALBRAITH IS NO MORE ILLUMINATING ON THE OVERSHOOTING IN THE US LEVERAGED BUYOUT LBO AND JUNK BOND MARKETS THE COMMERCIAL REAL ESTATE AND VENTURE CAPITAL MARKETS HE FAILS TO MENTION THE GROSS MISALIGNMENT OF INCENTIVES CAUSED BY THE FAILURE OF DEAL PROMOTERS AND OTHER INTERESTED PARTIES INCLUDING MANAGEMENT TO PUT UP THEIR OWN EQUITY CAPITAL DURING THE SECOND HALF OF THE '80S LBO PROMOTERS AND EVEN CORPORATE MANAGERS WERE EFFECTIVELY BEING PAID JUST TO DO DEALS BUT UNLIKE MOST OF THE EPISODES MENTIONED IN A SHORT HISTORY THE LBO AND JUNK BOND LOSSES WERE FOR THE MOST PART A PRIVATE PROBLEM THOUGH THEY DID INVOLVE A HANDFUL OF S&LS AND THUS AMENABLE TO A PRIVATE SOLUTION CONTRARY TO MR GALBRAITH'S CLAIM MARKETS CAN AND DO LEARN FROM PAST MISTAKES WHETHER THE SAME IS TRUE OF GOVERNMENTINSPIRED FINANCIAL FOLLY IS LESS CLEAR INDEED THE MAIN LESSON TO BE LEARNED FROM THIS BOOK ONE THAT SEEMS TO HAVE ESCAPED HIS NOTICE IS THAT THE WORST FINANCIAL DISASTERS WERE THOSE IN WHICH GOVERNMENTS PLAYED A MAJOR ROLE FOR INSTANCE THE MAIN PROBLEM THAT TURNED THE 1929 STOCK MARKET CRASH INTO A DECADELONG DEPRESSION WAS NOT THE STOCK MARKET COLLAPSE ITSELF AS MR GALBRAITH WRITES BUT THE 30 IMPLOSION OF THE MONEY SUPPLY ALLOWED BY THE FED COMBINED WITH THE COLLAPSE OF WORLD TRADE INITIATED BY THE SMOOTHAWLEY TARIFFS TWO OF THE WORST EUROPEAN DISASTERS DESCRIBED IN THIS BOOK THE ENGLISH SOUTH SEA BUBBLE AND THE FRENCH SCANDAL SURROUNDING THE COMPAGNIE D'OCCIDENT WERE GOVERNMENTBACKED ENTERPRISES OR AT LEAST GAVE THE ILLUSION OF HAVING GOVERNMENT BACKING RECENT RESEARCH HAS EVEN CAST DOUBT ON THE STANDARD VERSION OF THE TULIP BUBBLE IN A 1989 ARTICLE IN THE JOURNAL OF POLITICAL ECONOMY PETER GARBER ARGUED THAT HISTORIANS HAVE DISTORTED THE EXTENT OF THE ACTUAL TULIP PRICE FLUCTUATIONS AS MR GARBER DISCOVERED THE 17THCENTURY BOOK THAT LONG SERVED AS THE PRINCIPAL HISTORICAL SOURCE FOR THE TULIP BUBBLE AND WHICH IS CITED REPEATEDLY BY MR GALBRAITH WAS ACTUALLY COMMISSIONED BY DUTCH GOVERNMENT AUTHORITIES WITH THE AIM OF SUPPRESSING THE TULIP FUTURES MARKETS DUTCH FARMERS IT SEEMS DISTRACTED BY THE PRICE OF TULIPS WERE NOT PRODUCING ENOUGH POTATOES MR CHEW IS A FOUNDING PARTNER OF STERN STEWART & CO A CORPORATE FINANCE ADVISORY FIRM AND EDITOR OF THE CONTINENTAL BANK'S JOURNAL OF APPLIED CORPORATE FINANCE 9308120022 930812 FINANCING BUSINESS US ALCOHOL TESTING OF AMERICA INC US ALCOHOL TESTING OF AMERICA INC RANCHO CUCAMONGA CALIF THE MAKER OF BREATHALIZER EQUIPMENT SAID ITS US DRUG TESTING INC UNIT PLANS A 75 MILLION INITIAL PUBLIC STOCK OFFERING THAT WILL RESULT IN A 30 PUBLIC STAKE IN THE UNIT THE OFFERING WILL CONSIST OF 15 MILLION NEW US DRUG TESTING SHARES AT AN EXPECTED 5 A SHARE ALL 35 MILLION SHARES OF US DRUG TESTING CURRENTLY ARE HELD BY US ALCOHOL TESTING WHICH WILL RETAIN THOSE SHARES PROJECTED NET PROCEEDS OF ABOUT 68 MILLION TO US DRUG TESTING WILL BE USED FOR A VARIETY OF PURPOSES INCLUDING RESEARCH AND DEVELOPMENT WORKING CAPITAL AND 14 MILLION IN PAYMENTS TO THE PARENT COMPANY US DRUG TESTING IS ENGAGED IN RESEARCH AND DEVELOPMENT OF SUBSTANCE ABUSE TESTS LICENSED TO THE COMPANY BY THE US NAVAL RESEARCH LABORATORY THE OFFERING WILL BE UNDERWRITTEN BY BARABAN SECURITIES INC IN LOS ANGELES US ALCOHOL STOCK ROSE 625 CENTS A SHARE TO 24375 A SHARE IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE 9308120021 930812 WHAT'S NEWS BUSINESS AND FINANCE WESTINGHOUSE AGREED TO SELL ITS UNIT THAT MAKES CIRCUIT BREAKERS AND OTHER ELECTRICAL DEVICES TO EATON FOR 11 BILLION THE MOVE IS PART OF WESTINGHOUSE'S EFFORTS TO PARE ITS HEFTY DEBT LOAD AND RAISE CASH BY SHEDDING SEVERAL BUSINESSES FOR AUTO PARTS MAKER EATON THE UNIT WILL BOOST ITS 39 BILLION ANNUAL SALES 25 MCI PRESIDENT DANIEL AKERSON ABRUPTLY QUIT TO BECOME CHAIRMAN OF GENERAL INSTRUMENT WHICH IS EQUIPPING THE CABLETV INDUSTRY IN ITS BATTLE AGAINST LOCAL PHONE MONOPOLIES IN THE BURGEONING MULTIMEDIA ARENA THE LABOR SECRETARY PLANS TO STEP UP HIS PUSH THIS FALL FOR AN INCREASE IN THE MINIMUM WAGE OF AT LEAST 25 CENTS FROM ITS CURRENT 425 AN HOUR FRANCE CUT INTEREST RATES CAUTIOUSLY IN WHAT COULD BE A MODEL FOR OTHER COUNTRIES SEEKING TO STIMULATE ECONOMIC RECOVERY WITHOUT CAPSIZING EUROPE'S CURRENCY SYSTEM EUROPEAN STOCK PRICES POSTED SIZABLE GAINS THE DOW JONES INDUSTRIALS ROSE 1062 POINTS TO A RECORD 358335 BOOSTED BY STRONG OVERSEAS STOCK MARKETS AND A SURGE IN SEMICONDUCTOR SHARES BOND PRICES ROSE SENDING LONGTERM INTEREST RATES TO ANOTHER 16YEAR LOW HMO STOCKS PLUNGED IN PART BECAUSE OF FEARS SPURRED BY A REPORT LATER DISMISSED BY THE WHITE HOUSE AS PHONY ON HEALTHCARE REFORM PLANS AGRICULTURE OFFICIALS LOWERED THEIR FORECAST OF THE CORN CROP 54 TO REFLECT RECORD RAIN DAMAGE IN THE MIDWEST THE CUT COULD LIFT US PRICES TODAY THE WIFE OF DART CHAIRMAN HAFT IS SEEKING TO END THEIR 45YEAR MARRIAGE AND GAIN CONTROL OF PART OF THE FAMILY'S RETAILING AND REAL ESTATE EMPIRE TWA GOT COURT APPROVAL TO EMERGE FROM BANKRUPTCY PROTECTION AND ANNOUNCED A 2FOR1 FARE SALE DIAMETRICS MEDICAL WITHDREW ITS 30 MILLION INITIAL OFFERING SEVERAL DAYS AFTER THE STOCK SALE AFTER PPG INDUSTRIES SUED CLAIMING DIAMETRIC'S FOUNDERS TOOK PPG TRADE SECRETS JOHNSON & JOHNSON SAID IT EXPECTS TO ELIMINATE 3000 JOBS THIS YEAR OR ABOUT 36 OF ITS WORK FORCE MAKERS OF CONSUMER GOODS MAY NEED TO REEXAMINE SOME PRICING ARRANGEMENTS ANTITRUST LAWYERS SAID IN THE WAKE OF THE ADMINISTRATION'S ANNOUNCEMENT THAT IT WILL STEP UP SCRUTINY OF ALLEGED PRICE FIXING GREAT WESTERN FINANCIAL HAS QUIETLY BEGUN A COSTCUTTING DRIVE IN A BID TO BOOST SAGGING EARNINGS ACCORDING TO AN INTERNAL COMPANY MEMO MORGAN STANLEY GROUP AGREED TO PURCHASE A MOSTLY VACANT 42STORY MANHATTAN SKYSCRAPER FOR 176 MILLION TO SERVE AS ITS NEW HEADQUARTERS HOME SHOPPING NETWORK'S CHAIRMAN ROY SPEER RESIGNED ROBERT BENNETT LIBERTY MEDIA'S CHIEF FINANCIAL OFFICER WILL BE ACTING CHAIRMAN GASOLINE FUTURES PRICES SURGED AMID FURTHER EVIDENCE OF A STRONG DEMAND IN THE US FOR MOTOR FUEL THE RISE GAVE A BOOST TO CRUDE OIL PRICES EQUITABLE REPORTED EARNINGS FOR THE SECOND QUARTER THAT WERE BETTER THAN EXPECTED AMID A SHARP IMPROVEMENT IN ITS LIFE INSURANCE BUSINESS THE NEWS SENT THE COMPANY'S STOCK CLIMBING 4 OR 19 TO END AT 2525 JAPAN'S TRADE SURPLUS WIDENED 28 IN JULY FROM A YEAR EARLIER PUTTING FURTHER PRESSURE ON THE NEW GOVERNMENT TO DO MORE THAN SIMPLY VOW TO CORRECT THE IMBALANCE JAPAN'S SURPLUS WITH THE US WIDENED 23 BONDS LEHMAN BROTHERS TREASURY INDEX 544156 UP 1411 COMMODITIES OIL 1788 A BARREL UP 36 CENTS DOW JONES FUTURES INDEX 12603 OFF 152 SPOT INDEX 12387 OFF 081 DOLLAR 10364 YEN OFF 106 17220 MARKS UP 00050 9308120020 930812 WHO'S NEWS COMPUCOM SYSTEMS HIRES EXPRESIDENT OF COMPUTERLAND DALLAS COMPUCOM SYSTEMS INC SAID ED ANDERSON THE HIGHPROFILE FORMER PRESIDENT OF COMPUTERLAND CORP'S DOMESTIC OPERATIONS WILL JOIN THE COMPANY AS ITS CHIEF OPERATING OFFICER IN THE NEW NO 2 POST MR ANDERSON 46 YEARS OLD WILL REPORT TO AVERY MORE COMPUCOM'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND WILL SERVE ON THE COMPANY'S BOARD OF DIRECTORS MR ANDERSON A WELLKNOWN COMPUTER INDUSTRY VETERAN JOINS COMPUCOM AT A TIME OF ZOOMING GROWTH FOR THE COMPUTER RESELLER NET INCOME AT THE COMPANY DOUBLED IN THE SECOND QUARTER ON REVENUE OF 2397 MILLION A 37 JUMP OVER THE PRIOR YEAR THE GAINS AT COMPUCOM AND AT OTHER COMPUTER RETAILERS COME DESPITE TOUGH TIMES AT PERSONAL COMPUTER MAKERS LIKE DELL COMPUTER CORP AND APPLE COMPUTER INC WHICH HAVE SUFFERED AS A RESULT OF TUMBLING PRICES MR ANDERSON WHO JOINED COMPUCOM AFTER BEING COURTED BY PC MAKERS AS WELL AS BY RIVAL RESELLER JWP INC DECLINED TO DISCUSS HIS DEPARTURE FROM CLOSELY HELD COMPUTERLAND PLEASANTON CALIF WHICH RECENTLY COMPLETED A MANAGEMENT RESTRUCTURING THAT CONSOLIDATES MOST OF THE COMPANY'S OPERATIONS UNDER CHAIRMAN WILLIAM TAUSCHER NOR WOULD MR ANDERSON DISCUSS IN DETAIL HIS PLANS FOR COMPUCOM SAYING HE WAS NOT INCLINED TO CHANGE A WINNING GAME PLAN MR ANDERSON DID SAY HE WOULD LIKE TO BOOST THE COMPUTER SERVICES COMPONENT OF COMPUCOM WHICH CURRENTLY ACCOUNTS FOR ABOUT 4 OF THE COMPANY'S REVENUE 9308120019 930812 TECHNOLOGY & HEALTH SEARCHANDDESTROY METHOD IS USED TO ADVANCE BLOODCANCER TREATMENT BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL MEDICAL RESEARCHERS SAID THEY MADE AN IMPORTANT ADVANCE IN TREATING CERTAIN BLOOD CANCERS WITH A SEARCHANDDESTROY TECHNIQUE THAT FERRIES LETHAL DOSES OF RADIATION DIRECTLY TO CANCER CELLS SCIENTISTS AT THE UNIVERSITY OF MICHIGAN SAID THE APPROACH CALLED RADIOIMMUNOTHERAPY RESULTED IN A COMPLETE REMISSION OF TUMORS IN FOUR OF NINE PATIENTS SUFFERING FROM NONHODGKIN'S LYMPHOMA AND SIGNIFICANTLY REDUCED THE SIZE OF TUMORS IN TWO OTHER PATIENTS SIDE EFFECTS WERE MINIMAL THE RESULTS WHICH ARE PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE ARE FROM A CONTINUING EARLY CLINICAL TRIAL OF THE TECHNIQUE AND RESEARCHERS ACKNOWLEDGED THAT IT'S TOO EARLY TO TELL FOR SURE WHETHER THE TREATMENT WILL PROVIDE SUSTAINED RELIEF OR A CURE FOR THE DISEASE BUT MARK KAMINSKI WHO HEADS THE RESEARCH TEAM AT THE UNIVERSITY'S COMPREHENSIVE CANCER CENTER IS OPTIMISTIC WE'VE MADE A BREAKTHROUGH IN THE LOGJAM WE'VE BEEN ENCOUNTERING FOR THE LAST TWO DECADES IN THE TREATMENT OF THIS DISEASE DR KAMINSKI SAID THIS TREATMENT IS GOING TO HAVE A MAJOR ROLE IN THE FUTURE HE SAID THAT SINCE THE PAPER WAS PREPARED TREATMENT HAS CONTINUED ON MORE PATIENTS AND THE RESULTS ARE HOLDING UP NICELY AN OFFICIAL AT THE NATIONAL CANCER INSTITUTE WHICH IS HELPING FUND THE RESEARCH WAS MORE RESERVED THE RESULTS ARE MORE STRIKING THAN ONE MIGHT HAVE EXPECTED SAID WYNDHAM WILSON OF THE NCI'S DIVISION OF CANCER TREATMENT BUT HE CAUTIONED THAT NONHODGKIN'S LYMPHOMA ESPECIALLY WHAT IS CONSIDERED A LOWGRADE VERSION OF THE DISEASE OFTEN RESPONDS TO CHEMOTHERAPY AND OTHER TREATMENTS ONLY TO RECUR THE REAL QUESTION IS WHETHER THE COMPLETE RESPONSE WILL LAST A LONG TIME AND ULTIMATELY PRODUCE CURES HE ADDED HE SAID AT LEAST TWO OF THE PATIENTS HAVE RELAPSED SINCE THE REPORT WAS COMPLETED ABOUT 40000 NEW CASES OF NONHODGKIN'S LYMPHOMA OCCUR EACH YEAR AND ABOUT 20000 DIE OF IT ANNUALLY PAUL TSONGAS THE FORMER MASSACHUSETTS SENATOR WHO RAN FOR PRESIDENT LAST YEAR IS ONE PROMINENT PERSON AFFLICTED WITH THE AILMENT THE TREATMENT INVOLVES A MONOCLONAL ANTIBODY A GENETICALLY ENGINEERED VERSION OF THE BODY'S OWN DISEASEFIGHTING ARSENAL DESIGNED TO ATTACH SPECIFICALLY TO CERTAIN CANCER CELLS CALLED BCELLS THAT BECOME MALIGNANT IN MOST FORMS OF NONHODGKIN'S LYMPHOMA INJECTED INTO THE BLOOD STREAM THIS ANTIBODY SEEKS OUT TUMOR CELLS AND WHILE IT HAS SOME KILLING EFFECT BY ITSELF IT ISN'T POWERFUL ENOUGH TO KILL MOST CELLS SO RESEARCHERS LATCHED A RADIOACTIVE ISOTOPE TO THE ANTIBODY WHICH CARRIES THE CANCERKILLING RADIATION TO THE TUMOR SITE DR KAMINSKI SAID RESEARCH GROUPS HAVE BEEN WORKING WITH THIS STRATEGY FOR SEVERAL YEARS WITH RESULTS THAT HAVEN'T YET ACHIEVED ITS PROMISE THE STUDY RESULTS SUGGEST THE MICHIGAN RESEARCHERS HAVE FOUND AN ANTIBODY THAT HOMES TO THE RIGHT TARGET AND HAVE ARMED IT WITH THE RIGHT ISOTOPE TO HAVE A POWERFUL EFFECT THE PATIENTS IN THE STUDY WERE PARTICULARLY SICK AND HAD UNDERGONE CHEMOTHERAPY AND OTHER TREATMENT WITHOUT SUCCESS SOME LIKELY WOULD HAVE DIED WITHIN THREE OR FOUR MONTHS WITHOUT THE TREATMENT DR KAMINSKI SAID IN ONE PATIENT MORE THAN A POUND OF TUMOR COMPLETELY DISAPPEARED HE SAID THE ANTIBODY IS MANUFACTURED BY COULTER CORP HIALEAH FLA 9308120018 930812 BOXES OF GM PAPERS TIED TO SHIPMENT FOR LOPEZ WIESBADEN GERMANY EMPLOYEES OF GENERAL MOTORS CORP'S ADAM OPEL AG UNIT HAVE DEFINITIVELY IDENTIFIED THREE OF THE FOUR BOXES OF SENSITIVE DOCUMENTS FOUND IN A WIESBADEN APARTMENT AS CARTONS ORIGINALLY PACKED AND SENT TO SPAIN AT THE REQUEST OF GM DEFECTOR J IGNACIO LOPEZ DE ARRIORTUA PEOPLE FAMILIAR WITH THE INVESTIGATION SAID THE CARTONS FORM THE CENTERPIECE OF ACCUSATIONS THAT THE FORMER GM PURCHASING CHIEF AND THE COWORKERS WHO FOLLOWED HIM TO VOLKSWAGEN AG ABSCONDED WITH CONFIDENTIAL DOCUMENTS ON THE BASIS OF POSTAL RECEIPTS AND OTHER MARKINGS THREE CARTONS WERE IDENTIFIED WITH 100 CERTAINTY AS BOXES SENT TO MR LOPEZ IN SPAIN PEOPLE FAMILIAR WITH THE INVESTIGATION SAID THE FOURTH WAS IDENTIFIED AS PROBABLY PART OF THAT SHIPMENT YET THAT DOESN'T ANSWER ALL QUESTIONS ABOUT THE CARTONS DINO MARTINEZ THE OPEL EMPLOYEE WHO PACKED AND SHIPPED THE CONTENTS OF MR LOPEZ'S OFFICE AT HIS REQUEST HAS TOLD OPEL OFFICIALS THAT THE BOXES HE PREPARED FOR MR LOPEZ CONTAINED ONLY NEWSPAPERS BOOKS AND PHOTOGRAPHS NO SLIDES PRICE LISTS OR OTHER DOCUMENTS OF CONFIDENTIAL NATURE SUCH AS THOSE FOUND IN WIESBADEN WERE IN THE BOXES HE PACKED MR MARTINEZ SAID THE DISCREPANCY IS ONE MORE IN A STRING OF CONTRADICTIONS IN THE CASE VW HAS CONCEDED THAT MR LOPEZ AND HIS COWORKERS POSSIBLY HAD SENSITIVE GM DOCUMENTS WITH THEM WHEN THEY WENT TO VW BUT THAT THEY SHREDDED THEM SOON AFTER THEY ARRIVED TO PREVENT ANY POSSIBLE DISTRIBUTION 9308120017 930812 MEDIA AND MARKETING COX ENTERPRISES INC ACQUIRES 125 STAKE IN POLISH NEWSPAPER WARSAW COX ENTERPRISES INC OF ATLANTA ANNOUNCED ITS FIRST NEWSPAPER DEAL OUTSIDE NORTH AMERICA THE ACQUISITION OF A 125 STAKE IN WARSAWBASED AGORAGAZETA LTD AGORAGAZETA IS THE PARENT OF POLAND'S LARGEST NATIONAL DAILY NEWSPAPER GAZETA WYBORCZA TERMS WEREN'T DISCLOSED THE NEWSPAPER'S WEEKDAY READERSHIP IS 500000 AND 800000 ON SATURDAYS ACCORDING TO GAZETA DAVID E EASTERLY PRESIDENT OF COX ENTERPRISES' NEWSPAPER DIVISION WOULDN'T DISCLOSE THE VALUE OF THE ACQUISITION HE SAID IT ISN'T PART OF SOME GRAND STRATEGIC PLAN TO BUY MORE NEWSPAPERS IN EASTERN EUROPE WE JUST HAPPENED TO MEET SOME OF THE RIGHT PEOPLE AT THE RIGHT TIME THE ACQUISITION FOLLOWS THE ANNOUNCEMENT MONDAY OF A LONGTERM PROJECTFINANCING DEAL BETWEEN AGORAGAZETA AND THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT FUNDS FROM THE 8 MILLION LOAN WILL FINANCE A NEW PRINTING FACILITY FOR GAZETA WYBORCZA IN WARSAW THE LOAN STRUCTURED BY AUSTRIA'S RAIFFEISEN ZENTRALBANK UNDER THE EBRD'S CENTRAL EUROPEAN AGENCY LINE WILL CONSIST OF 4 MILLION CONTRIBUTIONS BY BOTH THE EBRD AND THE AUSTRIAN BANK THE PRINTING PLANT PROJECT IS VALUED AT NEARLY 12 MILLION WITH THE BALANCE OF 4 MILLION FUNDING PROVIDED BY AGORAGAZETA AND COX COX ENTERPRISES OPERATES PRIMARILY IN NORTH AMERICA WHERE ITS COX NEWSPAPERS OWNS 17 DAILY NEWSPAPERS IT ALSO HAS BROADCAST AND CABLE INTERESTS AS WELL AS OTHER MEDIA PUBLISHING AND RELATED VENTURES 9308120016 930812 ASPIN QUICKLY REVERSES MARINES' MARRIAGE POLICY WASHINGTON THE MARINES SAID YESTERDAY THEY WERE LOOKING FOR A FEW GOOD BACHELORS BUT LES ASPIN WASN'T WEDDED TO THE IDEA IN A STATEMENT CIRCULATED YESTERDAY THE MARINE CORPS SAID THAT STARTING LATE IN 1995 IT WOULD NO LONGER ACCEPT MARRIED RECRUITS A FEW HOURS LATER THE ORDER WAS OVERRULED BY DEFENSE SECRETARY ASPIN WHO ACCORDING TO A STATEMENT DIRECTED THAT ANY NEW POLICY PROPOSALS ON THIS MATTER BE SUBJECTED TO A FULL POLICY REVIEW IN THE ORDER THAT WAS OVERRULED YESTERDAY THE CORPS' COMMANDANT GEN CARL MUNDY SAID THAT THE SERVICE IS SUFFERING FROM THE GROWING NUMBER OF FAILED OR STRAINED MARRIAGES AMONG NEW MARINES TODAY 40 OF OUR ENTIRE FIRSTTERM FORCE IS MARRIED HE WROTE IN THE MESSAGE WHICH WAS CIRCULATED THROUGHOUT THE CORPS ALTHOUGH MANY OF THESE MARRIAGES ARE STRONG FAR TOO MANY ARE NOT HE NOTED THAT NEW MARRIAGES ARE STRAINED BY FREQUENT OVERSEAS DEPLOYMENTS OF TROOPS AND BY THE DIFFICULTY OF LIVING ON THE MODEST SALARIES OF JUNIOR MARINES HENCE HE ORDERED RECRUITING OFFICERS TO CUT THE PERCENTAGE OF RECRUITS WHO ARE MARRIED TO 4 STARTING AT THE END OF NEXT MONTH AND TO STOP ACCEPTING MARRIED RECRUITS IN ABOUT TWO YEARS 9308120015 930812 TALKS TO ADD LONDON FUTURES EXCHANGE TO GLOBEX COLLAPSE CHICAGO TALKS AIMED AT INCLUDING THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE LIFFE IN GLOBEX THE FLEDGLING AFTERHOURS ELECTRONIC TRADING SYSTEM BROKE DOWN THIS WEEK OVER A WIDE RANGE OF ISSUES ACCORDING TO PAT ARBOR CHAIRMAN OF THE CHICAGO BOARD OF TRADE GLOBEX LAUNCHED 14 MONTHS AGO IS A JOINT VENTURE OF THE CBOT THE CHICAGO MERCANTILE EXCHANGE AND REUTERS PLC THE SYSTEM'S PERFORMANCE HAS BEEN GENERALLY DISAPPOINTING DOGGED BY LOW VOLUME IN CONTRACTS BEING OFFERED BY THE TWO BIG CHICAGO FUTURES EXCHANGES THE SYSTEM GOT A BIG BOOST HOWEVER IN MARCH WHEN THE FRENCH FUTURES EXCHANGE JOINED AND ATTRACTED SUBSTANTIAL INVESTOR INTEREST IN ITS SHORTTERM FRENCH INTERESTRATE CONTRACTS GLOBEX HAD HOPED TO INCREASE VOLUME FURTHER BY CORRALLING LIFFE BUT TALKS BROKE OFF TUESDAY BY MUTUAL AGREEMENT MR ARBOR DENIED THAT IT WAS BECAUSE OF THE CBOT'S REFUSAL TO PERMIT LIFFE TO LIST THE BUND THE GERMAN GOVERNMENT BOND ON GLOBEX THE CBOT INTENDS TO TRADE A BUND CONTRACT AND RECENTLY MADE CLEAR TO LIFFE THAT IT DID NOT WANT THE BIG LONDON EXCHANGE TO LIST THE POPULAR GERMAN CONTRACT ON GLOBEX FOR PROPRIETARY REASONS IT'S INACCURATE TO SAY THE TALKS WERE SUSPENDED BECAUSE OF THE BUND ISSUE ALONE SAID MR ARBOR THERE WERE MANY ISSUES OUTSTANDING A SPOKESMAN FOR LIFFE IN THE US SAID THE OTHER ISSUES WERE NOT ONES THAT WOULD HAVE BROKEN DOWN THE DISCUSSIONS THE MAIN POINT EMPHASIZED BY LIFFE CHAIRMAN NICHOLAS DURLACHER TO MEMBERS WAS THE BUND ISSUE 9308120014 930812 WHO'S NEWS PERCEPTRON INC PERCEPTRON INC FARMINGTON HILLS MICH THE 3D IMAGING SOLUTIONS CONCERN SAID IT ELECTED PAUL L MCDERMOTT TO ITS BOARD INCREASING THE BOARD'S SIZE TO EIGHT MCDERMOTT 39 YEARS OLD IS VICE PRESIDENT MERGERS AND ACQUISITIONS AT NOMURA SECURITIES INTERNATIONAL INC PERCEPTRON DEVELOPS AND MARKETS NONCONTACT MEASUREMENT AND GUIDANCE SYSTEMS FOR SALE IN NORTH AMERICA EUROPE AND ASIA 9308120013 930812 WESTINGHOUSE PLANS TO SELL UNIT TO EATON CORP DISTRIBUTION CONTROL LINE WILL FETCH 11 BILLION AS PART OF RESTRUCTURING BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP TRYING TO PARE ITS HEFTY DEBT LOAD SAID IT AGREED TO SELL ITS DISTRIBUTION AND CONTROL UNIT TO CLEVELANDBASED EATON CORP FOR 11 BILLION THE TRANSACTION IS PART OF A WESTINGHOUSE RESTRUCTURING PLAN PUT TOGETHER LAST YEAR TO RAISE CASH BY SHEDDING SEVERAL BUSINESSES MICHAEL H JORDAN WESTINGHOUSE'S NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS CALLED DEBT REDUCTION A PRIORITY THIS YEAR THOUGH NEGOTIATIONS TO SELL THE UNIT WHICH MAKES CIRCUIT BREAKERS AND OTHER ELECTRICAL DEVICES WERE WELL UNDER WAY BEFORE HE JOINED THE COMPANY IN JUNE THE MANUFACTURING AND ELECTRONICS COMPANY'S DEBT TOTALS 63 BILLION IT DOESN'T ALLEVIATE THEIR PROBLEMS SAID MAUREEN P LENTZ AN ANALYST WITH ROULSTON & CO IN CLEVELAND THEY STILL HAVE TO GET THE DEBT DOWN FURTHER FOR EATON THE TRANSACTION WOULD BE THE COMPANY'S BIGGEST ACQUISITION EVER THE PURCHASE WOULD BOOST EATON'S 39 BILLION IN ANNUAL SALES BY 25 AND PROMISES TO MAKE THE COMPANY LESS DEPENDENT ON SALES TO THE CYCLICAL AUTOMOTIVE INDUSTRY WESTINGHOUSE WAS HURT BY A DISASTROUS FORAY INTO FINANCIAL SERVICES WHICH RESULTED IN 5 BILLION IN CHARGES FROM SOUR LOANS AND BY SLOW GROWTH IN ITS OLDER MANUFACTURING BUSINESSES ONE POSSIBLE ROADBLOCK FOR EATON IS SIEMENS AG OF GERMANY WHICH UNDER THE TERMS OF A 1989 CONTRACT WITH WESTINGHOUSE HAS A RIGHT TO BUY THE UNIT SIMPLY BY MATCHING EATON'S OFFER A SIEMENS SPOKESMAN SAID WE'RE VERY INTERESTED IN THE DISTRIBUTION AND CONTROLS MARKET AND IN THIS COMPANY HE ADDED THAT OUR MANAGEMENT IS NOW CONSIDERING WHAT IT WANTS TO DO AND THIS WILL BE DETERMINED IN THE NEXT 30 DAYS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EATON ROSE 75 CENTS TO 45375 WHILE WESTINGHOUSE FELL 25 CENTS TO 1575 IF SIEMENS TURNS DOWN ITS OPPORTUNITY EATON SAID IT COULD COMPLETE THE TRANSACTION BY YEAR END EATON'S CHAIRMAN WILLIAM E BUTLER SAID THE COMPANY HAS LOOKED FOR SEVERAL YEARS TO SEE HOW WE COULD INCREASE OUR INDUSTRIAL CONTROLS UNIT ELI S LUSTGARTEN AN ANALYST WITH PAINEWEBBER INC SAID AUTOMOTIVE PARTS CURRENTLY MAKE UP AS MUCH AS TWOTHIRDS OF EATON'S EARNINGS NOW HE CALLED WESTINGHOUSE'S DISTRIBUTION AND CONTROL BUSINESS WHICH HAD SALES LAST YEAR OR 11 BILLION A VERY APPROPRIATE LONGTERM ACQUISITION TO REBALANCE THE COMPANY EATON SAID THE WESTINGHOUSE UNIT IS PROFITABLE BUT IT BELIEVES IT CAN SQUEEZE MORE MONEY OUT OF IT THROUGH COSTCUTTING PAINEWEBBER'S MR LUSTGARTEN SAID EATON WILL HAVE 97 FACILITIES AFTER IT COMBINES ITS INDUSTRIAL CONTROL AND POWER DISTRIBUTION OPERATIONS WITH THE WESTINGHOUSE UNIT IT WANTS TO CUT THAT TO FEWER THAN 70 EATON WILL FUND THE ACQUISITION WITH A 11 BILLION LINE OF CREDIT AFTER IT COMPLETES THE TRANSACTION THE COMPANY ANTICIPATES SELLING 300 MILLION IN EQUITY AND PLANS TO EXTEND THE MATURITY OF ABOUT 200 MILLION IN EXISTING DEBT THROUGH REFINANCINGS MOODY'S INVESTORS SERVICE INC PUT 800 MILLION OF EATON'S LONGTERM DEBT UNDER REVIEW FOR POSSIBLE DOWNGRADE BUT STEPHEN R HARDIS EATON'S CHIEF FINANCIAL OFFICER SAID THAT GIVEN THE STRONG CASH FLOW THAT EATON HAS WE FEEL VERY COMFORTABLE ABOUT OUR ABILITY TO PAY DOWN THE DEBT IN ADDITION TO THE DISTRIBUTION AND CONTROLS BUSINESS WESTINGHOUSE HAS THREE OTHER UNITS ON THE BLOCK ITS ELECTRICAL WHOLESALE COMPANY KNOLL FURNITURE SUBSIDIARY AND WESTINGHOUSE COMMUNITIES REALESTATE DEVELOPMENT ARM MAINLY BY SELLING THE DISTRIBUTION AND CONTROL AND ELECTRICAL WHOLESALE UNITS AND UNLOADING MORE OF ITS FINANCIAL SERVICES SUBSIDIARY WESTINGHOUSE COULD SLASH ITS DEBT TO LESS THAN 3 BILLION THIS YEAR SAID NICHOLAS P HEYMANN AN ANALYST WITH COUNTY NATWEST USA THE DISTRIBUTION AND CONTROL UNIT IS CONSIDERED THE MOST ATTRACTIVE AND THEREFORE EASIEST TO SELL KNOLL WHICH MAKES EXPENSIVE OFFICE FURNITURE ISN'T EXPECTED TO BE SOLD THIS YEAR 9308120012 930812 WHO'S NEWS WELDOTRON CORP WELDOTRON CORP PISCATAWAY NJ WILLIAM J KURTZER 37 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF INDUSTRIAL SHRINK PACKAGING EQUIPMENT THE ELECTION OF MR KURTZER DIRECTOR OF FINANCIAL PLANNING AND ANALYSIS FOR PHILIP MORRIS MANAGEMENT CORP A SUBSIDIARY OF PHILIP MORRIS COS INCREASES THE BOARD TO SEVEN MEMBERS 9308120011 930812 LETTERS TO THE EDITOR GIVE BANKS A CHANCE TO HELP INNER CITIES I HAVE TO ADMIT THAT JONATHAN R MACEY'S JULY 19 EDITORIAL PAGE ARTICLE ABOUT PRESIDENT CLINTON'S BANKING PROPOSALS PORKBARREL BANKING DOES CONTAIN ONE OR TWO GRAINS OF TRUTH NAMELY THAT THE COMMUNITY REINVESTMENT ACT IS A REGULATORY BURDEN AND THAT THERE ARE TOO MANY BANKS BUT THOSE POINTS ARE DECIDEDLY SECONDARY TO HIS MAIN POINT WHICH SEEMS TO BE THAT ANY GOVERNMENTSPONSORED ATTEMPT TO CHANNEL CAPITAL TO SMALL BUSINESSES AND BLIGHTED INNERCITY NEIGHBORHOODS IS ABHORRENT WHILE PRESIDENT CLINTON'S PROPOSALS ON THIS SCORE MAY NOT BE PERFECT WHY RESTRICT THE PLAN THUS LIMITING THE RESULT TO BANKS THAT ARE PRINCIPALLY ENGAGED IN COMMUNITY DEVELOPMENT LENDING WHY NOT TAP INTO THE NETWORKS MANY BANKS HAVE ALREADY ESTABLISHED MR MACEY'S OUTOFHAND DISMISSAL OF ANY SOLUTION OTHER THAN RELYING ON ENTREPRENEURS TO HELP SALVAGE SOME OF THESE NEIGHBORHOODS IS AT BEST NAIVE MR MACEY IS AN ACADEMIC I'M A BANKER AS EXECUTIVE DIRECTOR OF CONTINENTAL'S COMMUNITY DEVELOPMENT CORPORATION I DEAL DAILY WITH THE REALITIES OF THE COMMUNITY REINVESTMENT ACT AND FROM MY EXPERIENCE THERE IS NO EVIDENCE THAT CRA REQUIREMENTS TRANSLATE DIRECTLY INTO EVERMORERISKY LENDING PRACTICES CRA ATTEMPTS TO MAKE SURE CAPITAL IS AVAILABLE TO ENTERPRISES THAT ARE SOUND AND CREDITWORTHY BUT WHICH BECAUSE OF SIZE OR LOCATION MAY NOT ORDINARILY BE SEEN AS DESIRABLE IT'S NOT AN EXCUSE TO THROW MONEY DOWN THE DRAIN I'D BE DELIGHTED TO INTRODUCE MR MACEY TO SOME OF THESE UNDESIRABLE CUSTOMERS I'M SURE THE EXPERIENCE WOULD BE ENLIGHTENING MR MACEY IS RIGHT IN POINTING OUT THAT THE BANKING SYSTEM NEEDS LESS NOT MORE REGULATION BUT HIS OVERREACTION TO CLINTON'S PROPOSALS AND TO CRA IN GENERAL DOES THAT IDEA A GRAVE DISSERVICE 9308120010 930812 OTC FOCUS LATE BUYING SPURRED MARKET TO RECORD DESPITE HEAVY DUMPING OF HMO STOCKS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK HEALTH MAINTENANCE ORGANIZATION STOCKS WERE PUMMELED BUT RIPPLES OF STRENGTH ELSEWHERE HELPED THE NASDAQ MARKET REGISTER A MODEST GAIN THE NASDAQ COMPOSITE INDEX JUMPED TO A RECORD ON LATE BUYING NEAR THE CLOSE RISING 169 POINTS OR 024 TO 71877 THE BAROMETER BROKE THE PREVIOUS RECORD OF 71849 SET MONDAY ADVANCERS OUTPACED RETREATING ISSUES 1493 TO 1336 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME ROSE TO 248521700 SHARES FROM THE 217586700 SHARES TRADED TUESDAY THE DOW JONES INDUSTRIAL AVERAGE BROKE THROUGH ITS PREVIOUS RECORD OF 357608 SET MONDAY GAINING 1062 POINTS OR 030 TO END AT 358335 ON THE NEW YORK STOCK EXCHANGE THE BIG BOARD'S COMPOSITE INDEX FINISHED 036 POINTS OR 014 HIGHER AT 24999 LONGTERM GOVERNMENT SECURITIES GOT ANOTHER BOOST YESTERDAY HELPING EQUITIES A BIT THE TREASURY'S BELLWETHER 30YEAR BOND EDGED UP 1/8 OF A POINT PUSHING ITS YIELD TO ANOTHER HISTORIC LOW OF ABOUT 643 ALTHOUGH RATES ARE LOW AND MARKET WATCHERS AREN'T EXPECTING SURPRISES FOR THE REST OF THE WEEK ALL EYES WILL FOCUS ON JULY PRODUCER PRICE AND CONSUMER PRICE DATA DUE OUT TODAY AND FRIDAY TRADERS SAID THE HMOS GOT ABSOLUTELY ANNIHILATED SAID TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO CONCERN OVER THE HEALTHCARE PLAN IS REALLY CAUSING A LOT OF DAMAGE INVESTORS REPORTEDLY ALSO DUMPED THEIR HMO ISSUES DUE TO WORRIES ABOUT THE IMPACT OF PRESIDENT CLINTON'S BUDGET ON REIMBURSEMENT RATES WHICH ARE SET TO GO HIGHER AFTER SEPT 7 MEANWHILE DONALDSON LUFKIN & JENRETTE DOWNGRADED THE WHOLE SECTOR OXFORD HEALTH PLANS SKIDDED 8 1/4 OR 12 TO 62 3/4 PHYSICIAN CORP OF AMERICA PLUNGED 6 1/2 OR 16 TO 35 1/4 US HEALTHCARE SLID 5 1/8 OR 11 TO 41 1/4 AND LED THE MOST ACTIVE LIST MID ATLANTIC MEDICAL LOST 2 TO 21 7/8 AND PACIFICARE HEALTH SYSTEMS CLASS B SHARES FELL 2 TO 32 7/8 IT'S SURPRISING THE OTC MARKET PERFORMED AS WELL AS IT DID WITH THE HMO STOCKS DOING SO BADLY SAID PATRICK DAVIS MANAGER OF OTC TRADING AT SALOMON BROTHERS THE TRADER SAID STRENGTH AMONG CHIP MAKERS COUNTERED SOME OF THE HARM DONE BY THE HMO GROUP SEMICONDUCTOR STOCKS ADVANCED ON STRONG CHIP INDUSTRY ORDERS THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID LATE TUESDAY THAT THE US SEMICONDUCTOR INDUSTRY'S JULY BOOKTOBILL RATIO WAS 112 UP FROM 111 IN JUNE INTEL ROSE 1 7/8 TO 58 3/4 ALTRON JUMPED 2 1/4 TO 30 AND ZILOG ADDED 1 1/2 TO 29 3/4 IF YOU LOOK AT THE LAST WEEK ON A RELATIVE BASIS THE OTC MARKET HAD A GOOD WEEK SAID STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO BUT IT'S A SLOWGO ENVIRONMENT WITH SMALL GAINS EVERYTHING'S PAUSE RALLY PAUSE RALLY MR GOLDMAN ADDED THAT NASDAQ STOCKS HAVE HAD A TREMENDOUS RUN AND ARE NOW SLOWING DOWN A BIT THOUGH THE NASDAQ COMPOSITE INDEX HAS HIT A HIGH IN FIVE OUT OF THE PAST SIX SESSIONS EACH DAY'S GAIN HAS BEEN SLIGHT IN OTHER CORPORATE DEVELOPMENTS SOME HEALTHCARERELATED STOCKS SLID APPARENTLY IN SYMPATHY WITH THEIR AILING HMO BRETHREN CHIRON STUMBLED 3 3/8 TO 60 1/2 GENZYME LOST 1 1/2 TO 30 1/2 AND IMMUNEX DROPPED 1 TO 21 9308120009 930812 WHO'S NEWS INTERNATIONAL COLIN ENERGY CORP INTERNATIONAL COLIN ENERGY CORP CALGARY ALBERTA THIS OIL AND GAS PRODUCER SAID IT APPOINTED THOMAS JACOBSEN 59 YEARS OLD AS ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND NELS CARLSON 43 AS ITS PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY SAID THAT MR JACOBSEN FORMERLY INTERNATIONAL COLIN'S PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDS JOHN MCGRAIN 47 WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS INTERNATIONAL COLIN SAID MR MCGRAIN WILL REMAIN A DIRECTOR OF THE COMPANY THE COMPANY SAID MR CARLSON WAS PREVIOUSLY ITS SENIOR VICE PRESIDENT 9308120008 930812 TECHNOLOGY & HEALTH AUTOTESTING PLAN PROPOSED BY GROUPS IN CALIFORNIA TO CHALLENGE EPA RULES BY ANDY PASZTOR STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FIGHTING TO KEEP LOCAL GARAGES IN THE BUSINESS OF CHECKING AUTO POLLUTION CALIFORNIA ENVIRONMENTAL AND BUSINESS GROUPS ARE CRAFTING A TESTING PLAN THAT CHALLENGES FEDERAL REGULATORS THE PROPOSAL WHICH IS EXPECTED TO BE MADE PUBLIC SHORTLY AND IS SUPPORTED IN PRINCIPLE BY GOV PETE WILSON COULD SERVE AS A MODEL FOR OTHER STATES STRUGGLING TO COMPLY WITH CLEANAIR STANDARDS IT CALLS FOR A VEHICLE INSPECTION SYSTEM THAT COMBINES CENTRALLY LOCATED TEST FACILITIES WITH THE THOUSANDS OF INDEPENDENT REPAIR AND EMISSIONSTESTING STATIONS ALREADY OPERATING THROUGHOUT CALIFORNIA THE DUAL APPROACH IS INTENDED TO REDUCE THE ECONOMIC PAIN OF PHASING OUT NEIGHBORHOOD SMOGCHECK OPERATIONS THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY FAVORS A SWITCH TO A CENTRALIZED STATERUN SYSTEM WHICH IT CLAIMS WOULD BE EASIER TO ENFORCE AND WOULD CATCH MORE POLLUTING VEHICLES THE PLAN IS BEING NEGOTIATED BY THE NATURAL RESOURCES DEFENSE COUNCIL AND REPRESENTATIVES OF SERVICESTATION OWNERS IT IS LIKELY TO PROMPT SMALLBUSINESS OWNERS IN OTHER STATES TO TRY TO FASHION SIMILAR PROGRAMS SEEKING THE MIDDLE GROUND IN ONE OF THE MOST CONTENTIOUS ENVIRONMENTAL ISSUES FACING INDUSTRY THE GROUPS DRAFTING THIS STATE'S PROPOSAL AREN'T WILLING YET TO COMMENT PUBLICLY ON THE DETAILS DENNIS DECOTA A SPOKESMAN FOR SERVICESTATION OWNERS SAID ONLY THAT WE HAVE OPENED A DIALOGUE AND ARE TRYING TO PUT TOGETHER A PUZZLE THAT'S BEST FOR INDUSTRY WHILE REDUCING POLLUTION BUT OTHERS CLOSE TO THE TALKS SAID THAT THE PACKAGE IF APPROVED BY STATE LAWMAKERS WILL CHALLENGE THE CLINTON ADMINISTRATION'S BASIC STRATEGY FOR CLEANING THE AIR IN LOS ANGELES AND 80 OTHER SMOGPLAGUED METROPOLITAN AREAS THE COOPERATIVE EFFORT BETWEEN BUSINESS AND ENVIRONMENTAL GROUPS ALSO IS SIGNIFICANT BECAUSE MARY NICHOLS PRESIDENT CLINTON'S CHOICE FOR THE TOP AIRPOLLUTION SPOT AT THE EPA AND FORMERLY A SENIOR NATURAL RESOURCES DEFENSE COUNCIL ATTORNEY SUPPORTED AND WAS INVOLVED IN THE EARLY STAGES OF THE DISCUSSIONS MS NICHOLS DECLINED TO COMMENT PENDING HER CONFIRMATION HEARINGS BEFORE THE SENATE THE POLITICALLYCHARGED ISSUE SLATED TO BE DISCUSSED BY A CALIFORNIA LEGISLATIVE COMMITTEE NEXT MONDAY IS SHAPING UP AS ONE OF THE BIGGEST POLICY DECISIONS CONFRONTING HER AND OTHER TOP EPA OFFICIALS THE EPA HAS ORDERED CALIFORNIA AND MANY OTHER LARGE STATES INCLUDING NEW JERSEY TEXAS AND COLORADO TO SET UP CENTRAL AUTOPOLLUTION TESTING STATIONS AND BAR REPAIR SHOPS FROM PERFORMING SUCH TESTS UNDER THE CLEAN AIR ACT STATES AND COMMUNITIES FACE STIFF FINES AND THE POTENTIAL CUTOFF OF HIGHWAY CONSTRUCTION MASS TRANSIT AND OTHER FEDERAL FUNDS IF THEY BALK THE PROPOSED CALIFORNIA PLAN WOULD CONTINUE ALLOWING SOME STATIONS TO REPAIR VEHICLES AND CERTIFY THAT THEY PASSED EMISSIONS TESTS DICK WILSON HEAD OF THE EPA'S OFFICE OF MOBILE SOURCES SAID IN AN INTERVIEW THAT FOR SOME REASON CALIFORNIA OFFICIALS WANT TO GET BY WITH THE LEAST THEY CAN TO MEET EPA STANDARDS THE FOCUS ISN'T ON WHAT'S GOOD FOR CLEAN AIR IN CALIFORNIA HE SAID BUT THE STATE VERSUS THE EPA SUPPORTERS OF THE PROPOSAL ON THE OTHER HAND CONTEND THAT IT WILL MEET THE EPA'S EMISSIONREDUCTION GOALS WITHOUT SACRIFICING A 400 MILLIONAYEAR INDUSTRY OR CREATING THOUSANDS OF ADDITIONAL LAYOFFS IN RECESSIONRAVAGED CALIFORNIA THE PLAN AMONG OTHER THINGS CALLS FOR ENHANCED ROADSIDE MONITORING OF EMISSIONS AND STEPPEDUP TESTING OF THE OLDER POORLY MAINTAINED VEHICLES THAT SPEW OUT THE MOST POLLUTION IN ADDITION THE CURRENT VERSION OF THE PROPOSAL ENVISIONS THAT OWNERS OF SOCALLED GROSS POLLUTERS MAY BE PROHIBITED FROM KEEPING THOSE CARS ON THE ROAD UNLESS THEY ARE REPAIRED IMMEDIATELY AND TESTED AT SPECIALLY DESIGNATED SITES 9308120007 930812 CRAIG HALL AFFILIATES OF COMPANY COMPLETE SETTLEMENT OF CLAIMS DALLAS REALESTATE SYNDICATOR CRAIG HALL SAID HE AND VARIOUS AFFILIATES OF HIS COMPANY PAID THE RESOLUTION TRUST CORP AND THE FEDERAL DEPOSIT INSURANCE CORP MORE THAN 110 MILLION THE PAYMENT COMPLETED A SETTLEMENT OF MORE THAN 300 MILLION IN FEDERAL CLAIMS AGAINST HIM AND VARIOUS AFFILIATES OVER 36 PROPERTIES MR HALL CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HALL FINANCIAL GROUP A DALLASBASED REALESTATE CONCERN PAID 1035 MILLION TO THE RTC IN TURN THE RTC RELEASED 25 OF THE PROPERTIES TO A NEW ENTITY CREATED BY KIDDER PEABODY & CO WHICH HAD PUT TOGETHER AN INVESTMENT GROUP THAT LENT MR HALL 80 MILLION TO MAKE THE SETTLEMENT PAYMENT MR HALL PAID AN ADDITIONAL 65 MILLION TO THE FDIC FOR CLAIMS INVOLVING THREE ARIZONA APARTMENT COMPLEXES MR HALL ONCE ONE OF THE NATION'S LARGEST REALESTATE SYNDICATORS SOUGHT CREDITOR PROTECTION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE IN 1992 AFTER THE RTC SUED HIM HE EMERGED FROM CHAPTER 11 ON JUNE 29 AND THE OUTLINES OF THE SETTLEMENT WHICH CONCLUDES ALL CLAIMS AGAINST HIM BY FEDERAL REGULATORS WERE PART OF HIS REORGANIZATION PLAN THE NEW ENTITY'S GENERAL PARTNERS WILL BE A UNIT OF KIDDER PEABODY AND A UNIT OF WINTHROP FINANCIAL ASSOCIATES A BOSTONBASED OWNER AND MANAGER OF REAL ESTATE WHICH WILL ALSO MANAGE THE 25 PROPERTIES THE NEW ENTITY WILL SEEK TO MARKET BONDS BACKED BY NEW MORTGAGES ON THE PROPERTIES AND MR HALL AND VARIOUS HALL FINANCIAL AFFILIATES WILL BE PASSIVE MINORITY INVESTORS 9308120006 930812 LETTERS TO THE EDITOR INSIDIOUS STEREOTYPES' CORRODE EQUAL RIGHTS IN HIS JULY 21 RULE OF LAW COLUMN SEXBLIND JURISPRUDENCE ISN'T ALWAYS FAIR PROF RICHARD EPSTEIN SUGGESTS THAT CERTAIN LAWS THAT DISTINGUISH BETWEEN MEN AND WOMEN ARE RATIONALLY BASED IN STATISTICS AND THUS SHOULD NOT BE OVERTURNED BY THE COURTS HE POINTS TO SUCH SUPREME COURT CASES AS CALIFANO V GOLDFARB AND FRONTIERO V RICHARD WHICH STRUCK DOWN STATUTES THAT PRESUMED WOMEN TO BE ELIGIBLE FOR CERTAIN BENEFITS YET REQUIRED MEN TO PROVE THEIR NEED AS EXAMPLES OF SITUATIONS IN WHICH STATISTICS JUSTIFIED DIFFERENT TREATMENT HE CONCLUDES THAT SUCH STATUTES EXEMPLIFY GOOD ECONOMICS RATHER THAN INSIDIOUS STEREOTYPES PROF EPSTEIN I FEAR MISSES THE POINT TO THE INDIVIDUAL SEEKING GOVERNMENT BENEFITS OR SOCIETAL PRIVILEGES ANY STEREOTYPE THAT IS IN ANY REGARD INACCURATE IS INSIDIOUS THE CONSTITUTIONAL REQUIREMENT OF EQUAL PROTECTION OF THE LAWS IS AT ITS MOST FUNDAMENTAL LEVEL A MANDATE THAT PEOPLE BE JUDGED NOT BY THE GENERAL ATTRIBUTES OF THEIR RACIAL SEXUAL OR ETHNIC GROUPS BUT BY THEIR OWN SPECIFIC SITUATIONS THE ONLY BENEFIT PROF EPSTEIN CAN ASCRIBE TO THE STATUTES IS THAT THEIR PRESUMPTIONS ARE MORE OFTEN CORRECT THAN NOT AND THAT THEY STREAMLINE THE ADMINISTRATIVE PROCESS AND SAVE MONEY THESE CONSIDERATIONS THE VERY ONES REJECTED BY THE COURT IN FRONTIERO IGNORE THE FACT THAT IN A CHANGING SOCIETY LAWS BASED UPON STATISTICS QUICKLY BECOME ARCHAIC AND SERVE LARGELY TO ENSCONCE CURRENT SOCIAL ASSUMPTIONS IN SUM STATISTICAL STEREOTYPES BY DEFINITION IGNORE INDIVIDUAL DIFFERENCES AND OFTEN INDIVIDUAL RIGHTS ADMINISTRATIVE EFFICIENCY SEEMS A POOR EXCHANGE THE NAME OF A 1973 SUPREME COURT CASE WAS MISSTATED IN A JULY 21 RULE OF LAW COLUMN SEXBLIND JURISPRUDENCE ISN'T ALWAYS FAIR AND IN A LETTER TO THE EDITOR YESTERDAY THE CORRECT NAME IS FRONTIERO V RICHARDSON 9308120005 930812 ECONOMY ARMS MAKERS ARE SERVING UP A CRUSH OF REQUESTS FOR PEACECONVERSION AID BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL ARMS MAKERS WANT THE TAXPAYERS' HELP A LOT OF IT IN BEATING THEIR SWORDS INTO PLOWSHARES WEAPONS PRODUCERS AND INDUSTRYRELATED RESEARCHERS HAVE SERVED UP A CRUSH OF 2763 REQUESTS SEEKING 843 BILLION IN FEDERAL AID TO CONVERT DEFENSE TECHNOLOGY INTO COMMERCIAL PRODUCTS THAT'S ABOUT 10 TIMES THE AMOUNT THE GOVERNMENT HAS SET ASIDE FOR THE PROGRAMS BURIED AMONG THE DELUGE OF PROPOSALS ARE DOZENS OF APPEALS FOR HELP WITH NEW CIVILIAN CRUISESHIP AND ADVANCEDBATTERY DESIGNS ALONG WITH SYSTEMS FOR WATERSHED MANAGEMENT HIGHCAPACITY SMART IDENTIFICATION CARDS EFFICIENT MANUFACTURING SYSTEMS AND EVEN PEST CONTROL AND OWL SURVEILLANCE DEFENSE GIANT NORTHROP CORP WANTS A 9 MILLION BOOST FOR ITS 32 MILLION EFFORT TO DEVELOP HIGHEFFICIENCY BUSES WHILE TRW INC WANTS TO TRANSFORM PEACEKEEPER MISSILE SYSTEMS INTO NUTRITIONAL PLANNING FOR HOSPITAL PATIENTS LORAL CORP IS LOOKING FOR AID TO USE MILITARYSATELLITE IMAGING SYSTEMS FOR MEDICAL DIAGNOSTICS AND DIGITALCOMPRESSION TECHNOLOGY FOR RECORDS MANAGMENT PITCHES FOR HELP WITH COMPOSITEMATERIAL RAILCARS AND ELECTRIC VEHICLES INCLUDED THOSE FROM TEAMS INVOLVING GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO UNIT LOCKHEED CORP AND MARTIN MARIETTA CORP THE WAVE OF APPLICATIONS FOR MATCHING FUNDS AND OTHER PAYMENTS SUGGESTS THAT INDUSTRY AND ACADEMIA ARE AWASH WITH IDEAS FOR SPEEDING THE TRANSITION AS US MILITARY SPENDING DRIES UP SKEPTICISM OF COURSE LINGERS THROUGHOUT THE INDUSTRY OVER WHETHER THE PROGRAM CAN BE EFFECTIVE AND NOT JUST BECAUSE THE PERCEIVED NEED DWARFS THE AVAILABLE MONEY MANY EXPERTS QUESTION WHETHER THE FEDERAL CAMPAIGN MUCH OF WHICH HAS BEEN DUBBED THE TECHNOLOGY REINVESTMENT PROJECT WILL BE ABLE TO DISTRIBUTE THE FUNDS EFFECTIVELY THEY ALSO HARBOR DOUBTS ABOUT WHETHER THE PROJECT WILL BENEFIT THE NATION'S VITAL AND EXTENSIVE SMALLBUSINESS SUPPLIER BASE IT'S NOT GOING TO GET INTO THE RIGHT HANDS SAID WILLIAM D MCMAN OF THORSON CO WHICH BROKERS PARTS BETWEEN DOZENS OF HARDHIT SMALL AND LARGE DEFENSE MANUFACTURERS IN SOUTHERN CALIFORNIA THERE'S BEEN A LOT OF EFFORT IN THE PENTAGON TO IDENTIFY THESE PROJECTS AND I THINK IN THE MAIN IT'S GOING TO BE WASTED SAID BERNARD SCHWARTZ LORAL'S OUTSPOKEN CHAIRMAN HE SUGGESTS ONLY FREEMARKET DECISIONS WILL EFFICIENTLY ADVANCE CONVERSION BUT EVEN MR SCHWARTZ'S PROTESTATIONS ARE TEMPERED BY THE OPPORTUNITY APPLICATIONS FROM LORAL BASED IN NEW YORK SEEK 85 MILLION OF THE MATCHING FUNDS FOR 15 PROJECTS THE GOVERNMENT FUNDS WILL BE HELPFUL HE SAID I'M NOT TRYING TO DENY THAT NO ONE INVOLVED NOT EVEN THE PENTAGON BRASS MANAGING THE EFFORT BELIEVES THE FLEDGLING DRIVE CAN OFFSET THE HUNDREDS OF THOUSANDS OF JOBS ALREADY BEING LOST AS US DEFENSE SPENDING DRIES UP DEPUTY DEFENSE SECRETARY WILLIAM PERRY THE TOP CRAFTSMAN IN DEFENSECONVERSION POLICY DESCRIBES THE POTENTIAL AS REAL BUT CAUTIONS THAT THE IDEA ISN'T TO BUY JOBS WITH GOVERNMENT AID RATHER HE SAID IT'S SETTING UP PROGRAMS WHICH HELP INDUSTRY CREATE ITS INITIATIVES CONGRESS BEGAN AMASSING FUNDS FOR DEFENSE REINVESTMENT LAST YEAR WHEN IT STOWED AWAY A FIRSTYEAR TOTAL 144 BILLION TO BE AVAILABLE FOR EVERYTHING FROM MILITARY EARLY RETIREMENTS AND BASECLOSURE AID IN ADDITION TO FUNDING THE HANDFUL OF DUALUSE TECHNOLOGY INCENTIVE PROJECTS OF THE TOTAL 845 MILLION WAS EARMARKED FOR PAYMENTS TO QUALIFYING COMPANIES PRIVATE NONPROFIT ORGANIZATIONS CONSULTING GROUPS AND COLLEGES OR UNIVERSITIES THE FIRST YEAR FOR FISCAL 1994 THE ADMINISTRATION IS PITCHING FOR AN ADDITIONAL 166 BILLION WITH 964 MILLION OF THAT SET ASIDE FOR DUALUSE PROGRAMS SOME OF THE PROGRAMS ENCOURAGE CLUSTERS OF COMPANIES TO DEVELOP NEW TECHNOLOGY IN DEVASTATED AREAS SUCH AS CALIFORNIA WHICH HAS SUBMITTED MORE THAN 336 PROPOSALS SEEKING MORE THAN 16 BILLION IN ASSISTANCE OTHER PROGRAMS TARGET ONLY MANUFACTURING TECHNOLOGY OR SEEK TO ASSIST SMALL COMPANIES WITH PROGRAMS SIMILAR TO THE AGRICULTURAL EXTENSION SERVICE THAT HELPS FARMERS A CRUCIAL TASK IN DOLING OUT MONEY WILL BE ENSURING THAT QUALIFYING PROJECTS ARE WORTHWHILE OR THAT THEY DON'T REPRESENT PRODUCTS THAT COMPANIES WOULD BE TAKING TO MARKET ANYWAY I THINK THAT'S THE POTENTIAL DANGER SAYS JAMES DERTOUZOS A RESEARCHER AT RAND CORP WHICH RECENTLY STUDIED THE CHALLENGE FOR THE PENTAGON ANOTHER CHALLENGE MR PERRY ALLOWS WILL BE REACHING SMALL AND MEDIUMSIZE BUSINESSES WITH AID HE SAID SPECIAL PROGRAMS THAT DON'T REQUIRE MATCHING FUNDS ARE BEING SET UP OR SHARPLY EXPANDED AND SMALL COMPANIES ARE LINKING WITH BIG ONES OR FORMING CONSORTIA IN AN EFFORT TO WIN MATCHINGFUND MONEY BIG COMPANIES DOMINATE MANY OF THE PROPOSALS LOOKING FOR BIG MONEY FOR EXAMPLE LOCKHEED IS INVOLVED IN 27 PROPOSALS SEEKING 150 MILLION INCLUDING FUNDING FOR A CONSORTIUM LOOKING TO DEVELOP A 450FOOTLONG BRIDGE MADE OF COMPOSITE MATERIALS ROHIT SHUKLA WHO OVERSEES DEFENSECONVERSION PROGRAMS FOR THE ECONOMIC DEVELOPMENT CORP OF LOS ANGELES COUNTY SAID THE FEDERAL REQUIREMENT FOR MATCHING HAS BEEN WIPING OUT MUCH INTEREST FROM SMALLER COMPANIES HE ALSO WORRIES THAT INDUSTRYLINKED UNIVERSITY PROGRAMS WILL GOBBLE UP TOO MUCH AID THAT COULD BE GOING DIRECTLY TO DEPLOYING NEW PRODUCTS OR MANUFACTURING TECHNIQUES ONE PROGRAM AIMED AT COMPANIES WITH FEWER THAN 500 WORKERS OFFERS 215 MILLION IN HELP OVER TWO YEARS UPGRADING DEFENSE AND COMMERCIAL MARKETS MR SHUKLA SAID COLLEGERUN AND PRIVATE CONSULTING PROGRAMS DOMINATE MANY OF THE 170 PROPOSALS TOTALING 404 MILLION IN THAT CATEGORY 9308120004 930812 THE NEW TAX LAW SEARCHING FOR SHELTER VARIABLE LIFE CAN BE FLEXIBLE BUT EXPENSIVE BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL RISING TAX RATES FOR WEALTHY AMERICANS COULD BE A BIG SHOT IN THE ARM FOR VARIABLE UNIVERSAL LIFE INSURANCE THESE POLICIES ENABLE PEOPLE TO INVEST IN MUTUAL FUNDS WITHIN THE TAXDEFERRED WRAPPER OF A LIFE INSURANCE POLICY BASICALLY A PORTION OF THE PREMIUM PAYS FOR LIFE INSURANCE PROTECTION AND THE REST GOES INTO STOCK AND BOND FUNDS THE INVESTOR CHOOSES WHERE IT GROWS TAXDEFERRED AND PASSES TO ONE'S HEIRS TAXFREE AFTER THE INITIAL INVESTMENT INVESTORS CAN ADD TO THE POLICY IN VARYING AMOUNTS AND AT FLEXIBLE INTERVALS AND HAVE ACCESS TO THEIR MONEY BY BORROWING IT OR BY MAKING PARTIAL WITHDRAWALS IF YOU NEED LIFE INSURANCE THIS IS AN ATTRACTIVE WAY TO BUY IT BECAUSE IT OFFERS INVESTING FLEXIBILITY NOT AVAILABLE WITH OTHER TYPES OF LIFE INSURANCE SAYS JAMES M BENSON SENIOR EXECUTIVE VICE PRESIDENT AT EQUITABLE LIFE ASSURANCE SOCIETY DURING THE PAST FEW YEARS SALES OF VARIABLE LIFE HAVE INCREASED 25 TO 35 ANNUALLY THAT'S AT A TIME WHEN THE SALES ON OTHER TYPES OF LIFE INSURANCE HAVE BEEN FLAT OR EVEN DECLINED INDUSTRY EXPERTS SAY VARIABLE LIFE COULD BECOME THE MOST COMMONLY SOLD FORM OF CASH VALUE LIFE INSURANCE WITHIN THE NEXT FIVE YEARS THE BIGGEST SELLERS INCLUDE EQUITABLE PRUDENTIAL INSURANCE CO OF AMERICA AND JOHN HANCOCK MUTUAL LIFE INSURANCE BUT THERE'S ONE BIG DOWNSIDE TO VARIABLE LIFE IT'S THE MOST EXPENSIVE FORM OF LIFE INSURANCE YOU CAN BUY USUALLY MORE EXPENSIVE THAN WHOLE LIFE AND UNIVERSAL LIFE THE OTHER TYPES OF INSURANCE THAT HAVE SAVINGS COMPONENTS DEPENDING ON YOUR AGE THE AMOUNT OF COVERAGE YOU HAVE THE COSTS OF THE POLICY AND OTHER FACTORS THE TOTAL ANNUAL COSTS MAY EXCEED 4 OF YOUR INVESTMENT IN SOME POLICIES FURTHER IF YOUR INVESTMENTS BOMB YOU NOT ONLY WILL LOSE MONEY BUT YOU MAY HAVE TO ADD MONEY TO THE POLICY TO KEEP IT IN FORCE BECAUSE A PORTION OF YOUR INVESTMENT DOLLARS GOES TOWARD PAYING FOR LIFE INSURANCE IF THE INVESTMENTS AREN'T PROVIDING ENOUGH RETURN TO PAY FOR THE COVERAGE YOUR DEATH BENEFIT WILL FALL BUT IF YOUR INVESTMENTS PERFORM WELL THIS CAN INCREASE YOUR DEATH BENEFIT THEY'RE VERY COSTLY POLICIES TO START UP SO YOU SHOULDN'T MAKE A DECISION UNDER PRESSURE FROM A SELLER OR BECAUSE OF THE TAX LAWS SAYS JENNIFER STRICKLAND A CONSULTANT AT MORNINGSTAR INC A CHICAGO CONCERN THAT TRACKS THE PERFORMANCE OF VARIABLE LIFE INSURANCE FUNDS PEOPLE WHO ARE INTERESTED IN VARIABLE UNIVERSAL LIFE NEED TO COMPARE CAREFULLY THE PERFORMANCE OF THE FUNDS IN THE CONTRACT THE COSTS OF THE CONTRACT AND THE COST OF THE LIFE INSURANCE COVERAGE START BY TAKING A LOOK AT COSTS WHEN YOU GIVE YOUR CHECK TO THE INSURANCE COMPANY IT WILL TAKE OUT THE COST OF THE INSURANCE THIS VARIES BY COMPANY AND DEPENDS ON THE FACE AMOUNT OF COVERAGE YOUR AGE AND OTHER FACTORS IT ALSO TAKES OUT THE STATE PREMIUM TAX WHICH VARIES BY STATE BUT IS USUALLY AT LEAST 2 NEXT THE COMPANY SUBTRACTS A FRONTEND LOAD WHICH TYPICALLY RANGES FROM ABOUT 3 TO 5 A MONTHLY CHARGE AND AT SOME COMPANIES A FIRSTYEAR CHARGE THAT RANGES FROM ZERO TO 660 WHAT'S LEFT GOES INTO SUBACCOUNTS FUNDS YOU CHOOSE WHERE OTHER EXPENSES ARE TAKEN OUT THESE INCLUDE THE ANNUAL INVESTMENT EXPENSE OF THE FUND STOCK FUNDS AVERAGE 081 ANNUALLY AND ADMINISTRATIVE EXPENSES WHICH AVERAGE 085 IF YOU DROP THE POLICY IN THE FIRST 10 TO 15 YEARS YOU PAY SURRENDER PENALTIES THESE MAY BE CALCULATED IN A VARIETY OF WAYS BUT COMMONLY RANGE FROM 10 TO 50 OF YOUR INVESTMENT IN THE FIRST YEAR DECLINING OVER 10 TO 15 YEARS IT'S NOT THE KIND OF THING YOU GET INTO AND CHANGE YOUR MIND TWO YEARS LATER MS STRICKLAND SAYS THE HIGH INTERNAL COSTS OF VARIABLE LIFE MEAN IT'S ESSENTIAL TO CHOOSE POLICIES THAT HAVE TOPPERFORMING FUNDS ASK THE INSURANCE SELLER TO SHOW YOU THE RETURNS ON THE UNDERLYING FUNDS AFTER ALL COSTS HAVE BEEN DEDUCTED YOU WANT TO SEE WHAT YOUR ACCOUNT WOULD ACTUALLY HAVE EARNED SAYS MS STRICKLAND PAY PARTICULAR ATTENTION TO THE STOCK FUNDS YOU'LL WANT TO KEEP YOUR MONEY IN FUNDS WITH POTENTIAL FOR HIGH RETURNS THESE INCLUDE SMALLSTOCK FUNDS INTERNATIONAL STOCK FUNDS BALANCED FUNDS WHICH INCLUDE BOTH STOCKS AND BONDS OTHER TYPES OF STOCK FUNDS AND BOND FUNDS WITH HIGHER YIELDS SUCH AS JUNK BOND FUNDS THE AVERAGE NUMBER OF FUNDS IN VARIABLE UNIVERSAL LIFE POLICIES IS NINE ACCORDING TO MORNINGSTAR BECAUSE OF THE POLICY'S HIGH ANNUAL COSTS IT MAKES NO SENSE TO PUT YOUR MONEY INTO MONEY MARKET FUNDS OR LOWYIELDING BOND FUNDS THESE WILL GIVE YOU NEGATIVE RETURNS AFTER COSTS ARE DEDUCTED GLENN DAILY AN INSURANCE CONSULTANT IN NEW YORK SAYS THAT VARIABLE LIFE POLICIES MAKE SENSE IF PEOPLE PLAN TO HOLD THEM FOR AT LEAST 20 YEARS HE ADVISES PROSPECTIVE BUYERS TO TAKE ADVANTAGE OF A SERVICE OFFERED BY NATIONAL INSURANCE CONSUMERS ORGANIZATION OF ALEXANDRIA VA FOR 35 NICO WILL ANALYZE THE POLICY AND HELP YOU COMPARE IT WITH OTHERS FOR INFORMATION CALL 703 5498050 VARIABLE LIFE ALSO MAKE SENSE ONLY IF YOU NEED LIFE INSURANCE HAVE USED UP ALL YOUR OTHER AVENUES OF TAXDEFERRAL SUCH AS 401K PLANS KEOGHS AND INDIVIDUAL RETIREMENT ACCOUNTS AND CAN AFFORD TO LEAVE YOUR MONEY INTACT FOR A LONG TIME AN ALTERNATIVE TO VARIABLE LIFE THAT COSTS A LOT LESS WOULD BE TO BUY A TERM LIFE POLICY IF YOU NEED LIFE INSURANCE AND PUT YOUR MONEY INTO VARIABLE ANNUITIES VARIABLE ANNUITIES ALSO GIVE YOU A FAMILY OF MUTUAL FUNDS TO INVEST IN WITHIN A TAXDEFERRED WRAPPER THE ANNUAL EXPENSE OF VARIABLE ANNUITIES ASSUMING YOU INVEST IN THE STOCK FUNDS WILL IN MOST CASES BE ABOUT 2 9308120003 930812 FORD MOTOR OFFERS FREE ROADSIDE HELP TO '94 MODEL BUYERS DETROIT FORD MOTOR CO IN A BID TO EXPAND FURTHER ITS SHARE OF THE US LIGHT VEHICLE MARKET IS OFFERING FREE EMERGENCY ROADSIDE SERVICES TO ANYONE WHO BUYS A 1994 CAR OR LIGHT TRUCK FROM THE AUTO MAKER THE PROGRAM WHICH INCLUDES FREE TOWING COVERS THE WARRANTY LIFE OF ALL 1994 MODELS TO A DEGREE FORD IS PLAYING CATCHUP FOLLOWING THE LEAD OF GENERAL MOTORS CORP WHICH OFFERS SIMILAR ROADSIDE SERVICE PROGRAMS TO OLDSMOBILE CADILLAC AND TO A LIMITED EXTENT CHEVROLET CUSTOMERS BUT UNLIKE ANY OF ITS COMPETITORS FORD IS UNIVERSALLY EXTENDING A PRIVILEGE THAT HAS TYPICALLY BEEN RESERVED FOR BUYERS OF LUXURY CARS A FREE RESCUE FROM FLAT TIRES FAILED BATTERIES ENGINE FAILURES OR OTHER VEHICLE MISHAPS FORD'S NEW MARKETING PLOY COULD LEAVE FLATFOOTED SUCH AUTO MAKERS AS CHRYSLER CORP WHICH PROVIDES ONLY LIMITED ROADSIDE ASSISTANCE THROUGH SERVICE CONTRACTS THAT COST CUSTOMERS EXTRA INDUSTRY ANALYSTS SAID FORD'S COMPETITORS WILL LIKELY HAVE TO MATCH THE SERVICE BECAUSE IT COMES AT A TIME WHEN CONSUMER DEMAND FOR SERVICE IS ON THE RISE IT IS REALLY GOING TO RAISE THE CHINNING BAR FOR THE HONDAS TOYOTAS NISSANS AND MAZDAS OF THE WORLD SAID GEORGE PETERSON AN INDUSTRY ANALYST WITH AUTOPACIFIC INC THOUSAND OAKS CALIF FORD WOULD NOT DISCLOSE WHAT IT WILL COST TO IMPLEMENT THE NEW PROGRAM EVEN BEFORE THIS LATEST MOVE INDUSTRY ANALYSTS HAD EXPRESSED CONCERN OVER FORD'S RELATIVELY MODEST AUTOMOTIVE EARNINGS IN NORTH AMERICA DESPITE RECENT GAINS IN MARKET SHARE I WAS HOPING THEIR MARKETING COSTS COULD BE SCALED BACK AS THE MARKET STRENGTHENS SAID PHILIP K FRICKE AN INDUSTRY ANALYST WITH PRUDENTIAL SECURITIES INC IN NEW YORK 9308120002 930812 GREAT WESTERN FINANCIAL BEGINS DRIVE TO CUT COSTS PLAN INCLUDES LAYOFFS BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL GREAT WESTERN FINANCIAL CORP BURDENED BY BLOATED OVERHEAD AND SOUR REALESTATE LOANS HAS QUIETLY BEGUN A COSTCUTTING DRIVE TO BOOST LAGGING EARNINGS ACCORDING TO AN INTERNAL COMPANY MEMORANDUM IN THE MEMO GREAT WESTERN THE NATION'S SECONDBIGGEST THRIFT URGES EMPLOYEES TO ENVISION EXPENSE CUTS OF AS MUCH AS 40 AS PART OF ITS PLAN GREAT WESTERN HAS STARTED LAYING OFF SOME OF ITS 16000 EMPLOYEES AND HAS IMPOSED A HIRING FREEZE IT ALSO HAS HIRED MCKINSEY & CO A NEW YORK CONSULTING FIRM TO HELP CUT OPERATIONAL COSTS ALTHOUGH MCKINSEY'S EARLIER ADVICE TO GREAT WESTERN HAS BEEN CRITICIZED BY ANALYSTS FOR LEADING TO THE THRIFT'S EXPENSIVE COST STRUCTURE GREAT WESTERN'S OVERHEAD IS 27 OF ITS INTERESTEARNING ASSETS COMPARED WITH AN AVERAGE OF 22 FOR OTHER BIG THRIFTS ANALYSTS SAID THE MOVES COULD TRIGGER A BIG CHARGE AGAINST EARNINGS WHEN THE INITIAL CUTS ARE COMPLETED IN DECEMBER FOR THE SECOND QUARTER NET INCOME DROPPED 24 TO 526 MILLION OR 35 CENTS A SHARE FOR 1992 PROFIT FELL 71 TO 85 MILLION OR 53 CENTS A SHARE THE COMPANY BASED IN CHATSWORTH CALIF DECLINED TO COMMENT ON ITS RESTRUCTURING PLANS OR THE LIKELIHOOD OF A RELATED FOURTHQUARTER CHARGE ACCORDING TO THE MEMO NO DOLLAR SAVINGS TARGET HAS BEEN SET IT DIDN'T CHARACTERIZE THE COST CUTS OF AS MUCH AS 40 AS A HARDSET GOAL BUT AS A BRAINSTORMING CHALLENGE THE MEMO SAID WE MUST TAKE DECISIVE ACTION TO CONTROL OUR OWN DESTINY SEVERAL ANALYSTS SAID SUCH ACTION WAS LONG OVERDUE BUT DIFFICULT BECAUSE GREAT WESTERN IS BURDENED WITH COSTLY PROBLEM LOANS ARISING FROM PERSISTENT RECESSION IN CALIFORNIA AND A PLUNGE IN PROPERTY VALUES SUCH NONPAYING LOANS HAVE SURGED TO 195 BILLION OR 501 OF TOTAL ASSETS COMPARED WITH A BIGTHRIFT AVERAGE OF 28 GREAT WESTERN'S PROBLEM LOANS DECLINED SLIGHTLY IN THE SECOND QUARTER BECAUSE OF ASSET SALES THEY'VE GIVEN LIP SERVICE TO CUTTING COSTS SINCE 1988 BUT NEVER REALLY ADDRESSED IT SAID MABON SECURITIES CORP ANALYST GARETH PLANK AND IT HAS TO START FROM THE TOP HE ADDED CITING LAVISH SALARIES AND PERKS OF SENIOR MANAGEMENT JAMES MONTGOMERY GREAT WESTERN'S LONGTIME CHAIRMAN AND CHIEF EXECUTIVE OFFICER EARNED 167 MILLION LAST YEAR AND HAS TWO CORPORATE JETS AT HIS DISPOSAL THE MEMO SIGNED BY MR MONTGOMERY AND PRESIDENT JOHN MAHER NOTED THAT THE FIRST ROUND OF CUTS WILL FOCUS ON OPERATIONS AT THE THRIFT'S HEADQUARTERS A 50ACRE CAMPUSSTYLE COMPLEX CONSISTING OF A DOZEN GLEAMING BUILDINGS AMONG THEM IS AN 88000SQUAREFOOT EMPLOYEE SERVICE CENTER THAT HOUSES A 450SEAT CAFETERIA A FITNESS CENTER AN ACTIVITIES OFFICE AND A COMPANY STORE ANOTHER IS A 16650SQUAREFOOT CHILDCARE CENTER PEOPLE AT HEADQUARTERS ARE REALLY AFRAID SAID ONE EMPLOYEE NOTIFIED TWO WEEKS AGO THAT SHE WOULD BE LAID OFF THE MEMO SAID ADDITIONAL CUTS MAY BE CONSIDERED NEXT YEAR WITHIN THE THRIFT'S BRANCH SYSTEM CONSUMER FINANCE UNIT AND OPERATIONS IN FLORIDA JONATHAN GRAY AN ANALYST WITH SANFORD C BERNSTEIN & CO SAID GREAT WESTERN'S HIGH COSTS ALSO STEM FROM ITS STRATEGY OF COMPETING WITH COMMERCIAL BANKS RATHER THAN TRADITIONAL THRIFTS SUCH AS GOLDEN WEST FINANCIAL CORP WHICH IS WIDELY PRAISED FOR TIGHT COSTS AND CREDIT CONTROLS IRONICALLY IT WAS MCKINSEY THAT ADVISED GREAT WESTERN TO PURSUE THIS BANKLIKE APPROACH MR GRAY SAID INSTEAD OF PAYING MCKINSEY ANOTHER HUGE FEE THEY SHOULD PAY A FEW HIGH SCHOOL STUDENTS TO GO SIT IN GOLDEN WEST'S BRANCHES AND JUST PLAGIARIZE WHAT THEY DO MR GRAY SAID A SPOKESMAN FOR MCKINSEY DECLINED TO COMMENT 9308120001 930812 CLOROX NET INCOME ROSE OVER FOURFOLD IN FISCAL 4TH QUARTER OAKLAND CALIF CLOROX CO NET INCOME ROSE MORE THAN FOURFOLD TO 498 MILLION OR 91 CENTS A SHARE IN THE FOURTH QUARTER ENDED JUNE 30 FROM 118 MILLION OR 22 CENTS A SHARE A YEAR EARLIER THE CONTRAST LARGELY REFLECTS VARYING LOSSES FROM DISCONTINUED OPERATIONS WHICH AMOUNTED TO 175000 IN THE CURRENT PERIOD BUT WHICH DEPRESSED THE YEARAGO QUARTER BY 228 MILLION BEFORE SUCH LOSSES EARNINGS FROM CONTINUING OPERATIONS ROSE 44 SALES ROSE 6 TO 4766 MILLION FROM 4512 MILLION CLOROX CREDITED ITS IMPROVED OPERATING PERFORMANCE TO RECORD SHIPMENTS OF LIQUID BLEACH PLUS STRONG SALES GAINS BY ITS OTHER HOUSEHOLDPRODUCT LINES SUCH AS CHARCOAL BRIQUETS AND HOMECLEANING PRODUCTS THE PERFORMANCE CAME AS NO SURPRISE TO WALL STREET AFTER CLOROX LAST MONTH ANNOUNCED ITS PERFORMANCE WOULD EXCEED ANALYSTS' FORECASTS IN NEW YORK STOCK EXCHANGE TRADING LATE YESTERDAY CLOROX STOCK WAS QUOTED AT 5150 DOWN 25 CENTS IN FISCAL 1993 NET ROSE 69 TO 1671 MILLION OR 305 A SHARE FROM 987 MILLION OR 182 A SHARE IN FISCAL 1992 THE LATEST RESULTS REFLECT A LOSS FROM DISCONTINUED OPERATIONS OF 867000 COMPARED WITH A LOSS OF 234 MILLION IN 1992 YEARAGO PROFIT ALSO INCLUDED A 191 MILLION CHARGE DUE TO AN ACCOUNTING CHARGE THERE WAS NO SUCH CHARGE IN FISCAL 1993 SALES ROSE 6 TO 163 BILLION FROM 155 BILLION WE EXPECT 1994 TO BE AN EXCELLENT YEAR FROM AN OPERATIONS PERSPECTIVE SAID CHAIRMAN AND CHIEF EXECUTIVE OFFICER CRAIG SULLIVAN BUT HE ADDED THAT EARNINGS GROWTH WILL BE MODERATED BY THE CLINTON ADMINISTRATION'S CORPORATE TAX INCREASES IN THE COMING YEAR CLOROX SAID IT EXPECTS PRODUCT INTRODUCTIONS TO EXCEED THE 11 PRODUCTS UNVEILED DURING 1993 9308120070 930719 PORKBARREL BANKING BY JONATHAN R MACEY PRESIDENT CLINTON'S BANKING POLICIES FINALLY TOOK SHAPE WITH LAST WEEK'S ANNOUNCEMENT OF HIS PLAN TO CREATE A COMMUNITY DEVELOPMENT BANK FUND AND TO TOUGHEN THE COMMUNITY REINVESTMENT ACT OF 1977 AS IF THE CURRENT REGULATORY BURDENS ON BANKS WERE NOT ENOUGH MR CLINTON NOW PROPOSES TO FORCE BANKS TO COMPETE WITH A NEW BREED OF SOCIALIZED FINANCIAL INSTITUTIONS MR CLINTON'S MUCHHERALDED COMMUNITY DEVELOPMENT BANK PLAN SEEKS TO CREATE A FEDERALLY SUBSIDIZED FUND TO FINANCE BANKINGINSTITUTIONS IN TARGETED AREAS THESE INSTITUTIONS WILL PROVIDE FUNDS TO BORROWERS WHO ARE NOT SUFFICIENTLY CREDITWORTHY TO ATTRACT MONEY FROM THE PRIVATE SECTOR SUCH PLANS FOR THE BANKING INDUSTRY REPRESENT THE SACRIFICE OF SOUND ECONOMIC POLICY ON THE ALTAR OF POLITICAL EXPEDIENCY INSTEAD OF THE EXPANDED POWERS AND STRUCTURAL REFORM DESPERATELY NEEDED TO MAKE BANKS COMPETITIVE MR CLINTON'S BANKING PROGRAM MERELY ADDS NEW BURDENS FOR MR CLINTON POLITICAL EXPEDIENCY REQUIRES TWO THINGS FIRST HE FEELS HE MUST PROMOTE SPENDING TO STIMULATE AN ECONOMY THAT HAS BECOME SLUGGISH AT THE PROSPECT OF HIGHER TAXES SECOND HE FEELS HE MUST FIND A WAY TO APPEASE ALIENATED HOUSE DEMOCRATS THE CONGRESSIONAL BLACK CAUCUS WAS PARTICULARLY OFFENDED BY THE SENATE BUDGET COMPROMISES WHICH INVOLVED MUCH DEEPER CUTS TO ENTITLEMENT PROGRAMS THAN THE CAUCUS WAS PREPARED TO ACCEPT NEW BANKING REGULATIONS PROVIDE THE PORK WITH WHICH THE PRESIDENT HOPES TO WIN SUPPORT FOR HIS POLITICAL AGENDA MR CLINTON PLANS TO IMPOSE CRA REQUIREMENTS THAT WILL NOT ONLY ENCOURAGE RISKIER LENDING BY BANKS BUT WILL ALSO FOR THE FIRST TIME REQUIRE BANKS AND OTHER FINANCIAL INSTITUTIONS TO LEND MONEYTO TARGETED AREAS PROVIDING PATRONAGE TO THE CONSTITUENTS OF FAVORED POLITICIANS OF COURSE ANY NEW LOANS FORCED BY REGULATION WILL REPRESENT LIABILITIES OF THE FEDERAL GOVERNMENT THIS IS BECAUSE THE FEDERAL GOVERNMENT WILL BE LEFT WITH THE TAB WHEN THESE LOANS CAUSE BANKS TO FAIL AND WHAT IS THE ECONOMIC REALITY BEHIND THIS POLITICAL MOVE IN TRUTH BANKS ARE NO LONGER AN APPROPRIATE MEDIUM FOR TRANSFERRING POLITICAL PATRONAGE HISTORICALLY THE BANKING INDUSTRY WAS A HEAVILY REGULATED HIGHLY PROTECTED CARTEL IN EXCHANGE FOR BANKS' WILLINGNESS TO BE USED IN WAYS CONVENIENT TO POLITICIANS THEY EARNED THE MONOPOLY PROFITS ENJOYED BY CARTELS BUT THE BANKING CARTEL HAS STEADILY BROKEN DOWN IN RECENT YEARS WITH THE ENTRY OF UNREGULATED FIRMS MUTUAL FUNDS INSURANCE COMPANIES COMMERCIAL FINANCE COMPANIES INVESTMENT BANKS AND PENSION FUNDS ALL COMPETE DIRECTLY WITH BANKS BUT DO NOT HAVE TO COMPLY WITH INEFFICIENT REGULATIONS THAT RESTRICT BANK ACTIVITIES AND IMPEDE PROFITABILITY FOR BANKS THESE REGULATIONS INCLUDE THE BANS ON INSURANCE AND SECURITIES ACTIVITIES AND ON INTERSTATE BANKING AS WELL AS THEBURDENS OF DEPOSIT INSURANCE PREMIUMS STRICT CAPITAL REQUIREMENTS RESERVE REQUIREMENTS AND ABOVE ALL THE COMMUNITY REINVESTMENT ACT THE CRA IS THE SINGLE MOST COSTLY REGULATION IMPOSED ON AN INDUSTRY BEING CONSUMED BY REGULATION THE CRA REQUIRES INSURED DEPOSITORY INSTITUTIONS TO MAKE EFFORTS TO MEET THE CREDIT NEEDS OF THEIR ENTIRE COMMUNITIES INCLUDING LOWINCOME AND MODERATEINCOME NEIGHBORHOODS REGULATORS DEFINE A BANK'S LOCAL COMMUNITY AS THE CONTIGUOUS AREA SURROUNDING EACH BANK OFFICE OR GROUP OF OFFICES WHENEVER A BANK WANTS TO ESTABLISH A NEW BRANCH SET UP A NEW AUTOMATIC TELLER MACHINE MERGE WITH ANOTHER BANK OR EXPAND IN ANY OTHER WAY THE BANK'S CRA RATING IS TAKEN INTO ACCOUNT BY REGULATORS THE BUSINESS PLANS OF BANKS ARE ROUTINELY STYMIED SOLELY BECAUSE OF COMPLAINTS FROM COMMUNITY GROUPS THAT BANKS SHOULD BE DOING MORE TO HELP THEM DESPITE MR CLINTON'S RHETORIC ABOUT HOW THE CRA SHOULD BE STRENGTHENED THE REALITY IS THAT THE CRA HAS MADE THE CREDIT CRUNCH IN LOWINCOME AREAS WORSE NOT BETTER BECAUSE IT IS EASIER TO MEET THE CREDIT NEEDS OF A COMMUNITY WITH FEWER POOR PEOPLE BANKS IN POOR AREAS HAVE A GREATER BURDEN UNDER THE CRA THAN BANKS INAFFLUENT AREAS THE CRA PROVIDES A MAJOR DISINCENTIVE FOR BANKS IN AFFLUENT AREAS TO EXPAND INTO POOR AREAS MOREOVER BECAUSE BANKS IN POOR AREAS HAVE A HARDER TIME COMPLYING WITH THE CRA THEY FIND IT MORE DIFFICULT TO GAIN THE REGULATORY PERMISSIONS NECESSARY TO EXPAND THIS PREVENTS BANKS IN POOR AREAS FROM DIVERSIFYING THEIR LENDING AND DEPOSIT BASES AND THIS IN TURN LOWERS THEIR PROFITABILITY AND INCREASES THEIR RATES OF FAILURE THE PRINCIPAL EFFECT OF THE CRA HAS BEEN TO ENHANCE THE POWER OF ACTIVIST GROUPS DEDICATED TO VARIOUS CAUSES RELATED TO COMMUNITY DEVELOPMENT MANY OF THESE GROUPS HAVE BECOME ADEPT AT USING THE CRA AS A VEHICLE FOR EXTRACTING PAYMENTS FROM DEPOSITORY INSTITUTIONS IN THE FACE OF THREATS BY ACTIVIST GROUPS INSTITUTIONS FACED WITH A CRA CHALLENGE TO THEIR EXPANSION PLANS OFTEN DECIDE TO PLACATE PROTESTERS BY FUNDING THE GROUPS' FUTURE ACTIVITIES OR PET PROJECTS REGULATORY AGENCIES EVEN ENDORSE THIS SORT OF EXTORTION AND OFFICIALLY ENCOURAGE PRIVATE MEETINGS BETWEEN BANKS AND PROTESTERS FOR THE PURPOSE OF REACHING AMICABLE SETTLEMENTS OF COURSE ALL THIS FURTHER DISCOURAGES BANKS FROM LOCATING IN OR EXPANDING TO POOR COMMUNITIES WHERE THESE KINDS OF SHAKEDOWNS ARECOMMONPLACE TO SOLVE A PROBLEM THAT IS LARGELY OF THE GOVERNMENT'S OWN CREATION MR CLINTON'S COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS ACT OF 1993 WOULD ATTEMPT TO SUCCEED WHERE THE CRA HAS FAILED BY GETTING THE GOVERNMENT EVEN MORE DIRECTLY INVOLVED IN COMMUNITYBASED LENDING THE BILL AUTHORIZES APPROPRIATIONS OF MORE THAN 400 MILLION OVER FOUR YEARS FOR A NEW FUND THAT WILL DOLE OUT MONEY TO COMMUNITYDEVELOPMENT FINANCIAL INSTITUTIONS LOCATED IN AREAS POPULATED WITH LOWINCOME OR DISADVANTAGED PEOPLE THAT ARE CONSIDERED UNDERSERVED BY EXISTING FINANCIAL INSTITUTIONS TO MAKE SURE THAT THE PORK IS DISTRIBUTED IN THE RIGHT PLACES THE GOVERNMENT FUND WILL BE MANAGED BY A BOARD DOMINATED BY CLINTON ADMINISTRATION OFFICIALS UNLIKE EARLIER DRAFTS OF HIS PROPOSAL THE CURRENT PLAN DOES NOT CONTAIN INCENTIVES FOR EXISTING FINANCIAL INSTITUTIONS TO LEND MONEY IN POOR AREAS THIS IS BECAUSE THE PLAN REQUIRES THAT THE PRIMARY MISSION OF AN INSTITUTION QUALIFYING FOR FUNDS MUST BE TO PROVIDE INVESTMENT TO LOWINCOME OR DISADVANTAGED AREAS IN OTHER WORDS THE PURPOSE OF THIS STATUTE IS TO FOLLOW THE ADVICE OF THOSE WHOADVOCATE TURNING COMMUNITY ACTIVISTS INTO BANKERS UNDER THE CLINTON PLAN THE SAME COMMUNITY GROUPS THAT HAVE MOUNTED SPURIOUS CRA CHALLENGES TO BANKS' EFFORTS TO EXPAND WILL NOW BE ABLE TO COMPETE WITH BANKS THANKS TO GOVERNMENT SUBSIDIES IF MR CLINTON REALLY WANTED TO PROVIDE HELP FOR DEPRESSED ECONOMIC AREAS WITHIN THE US HE WOULD ADVOCATE SCRAPPING THE CRA RATHER THAN STRENGTHENING IT AT BEST THE BANKING INDUSTRY HOPES TO PERSUADE MR CLINTON TO LEVEL THE PLAYING FIELD BY EXTENDING THE REACH OF CRA TO MUTUAL FUNDS AND OTHER NONBANK COMPETITORS AND BY REPLACING SOME OF THE ADMINISTRATIVE BURDENS OF THE CRA WITH SUBSTANTIVE PERFORMANCEORIENTED STANDARDS THESE ARE BAD IDEAS SUBSTANTIVE STANDARDS WILL MAKE THE REGULATORY BURDEN HEAVIER NOT LIGHTER AND EXTENDING THIS REGULATORY BURDEN TO BANKS' COMPETITORS WILL ONLY EXTEND EXISTING INEFFICIENCIES AND COUNTERPRODUCTIVE POLICIES TO OTHER SECTORS OF THE FINANCIAL SYSTEM MEANINGFUL INVESTMENT IN AMERICA'S BLIGHTED INNER CITIES IF IT IS EVER GOING TO HAPPEN WILL COME FROM ENTREPRENEURS NOT FROM THE ODD MIXTURE OF COMMUNITY ACTIVISTS BUREAUCRATS AND POLITICIANS THAT MR CLINTON IS COBBLING TOGETHER IF THERE IS ONE THING THIS COUNTRY DOES NOT NEED IT IS MORE BANKS THE INDUSTRY SHOULD BE CONTRACTING NOT EXPANDING FOR THIS REASON MR CLINTON SHOULD ABANDON HIS PLAN TO CREATE GOVERNMENTSUBSIDIZED COMPETITION FOR BANKS BY PROVIDING THEIR COMPETITORS WITH COMMUNITY DEVELOPMENT FUNDS MR CLINTON'S PLAN FOR COMMUNITY DEVELOPMENT BANKS MAY PROVIDE SHORTTERM POLITICAL GAINS FOR HIM BUT IT INVOLVES LONGTERM ECONOMIC COSTS FOR THE REST OF US MR MACEY IS A PROFESSOR OF LAW AT CORNELL UNIVERSITY SEE RELATED LETTER LETTERS TO THE EDITOR GIVE BANKS A CHANCE TO HELP INNER CITIES WSJ AUG 12 1993 9307190063 YY93 MM08 9308120063 930721 RULE OF LAW SEXBLIND JURISPRUDENCE ISN'T ALWAYS FAIR BY RICHARD A EPSTEIN WHAT A WELCOME RELIEF IF SENATORIAL INQUISITIONS OF SUPREME COURT NOMINEES COULD IMITATE THE RULES OF THE GENEVA CONVENTION NAME RANK AND DARE WE SAY IT SOCIAL SECURITY NUMBER CANDIDATES WOULD BE SPARED THE THANKLESS CHOICE OF REMAINING INERT RECANTING THEIR FORMER POSITIONS OR WAXING COMPASSIONATE AND PHILOSOPHICAL IN JUST THE RIGHT PROPORTIONS TO SURVIVE THE CONFIRMATION ORDEAL A SLIMMEDDOWN SENATE HEARING WOULD SPARE US THE NATIONAL INDIGNITY OF WATCHING FUTURE JUSTICES SHRINK IN STATURE BEFORE OUR VERY EYES CONFIRMATION OF RUTH BADER GINSBURG WHOM THE SENATE JUDICIARYCOMMITTEE BEGAN QUIZZING YESTERDAY IS LIKELY TO BE SWIFT GIVEN HER DISTINGUISHED RECORD AS A LITIGATOR PROFESSOR AND CIRCUIT COURT JUDGE HER CONFIRMATION SHOULD BE SUPPORTED EVEN BY THOSE WHO DISAGREE WITH PARTS OF HER CONSTITUTIONAL JURISPRUDENCE AS I DO BUT A SPEEDY CONFIRMATION SHOULD NOT BE CONFUSED WITH AN ENDORSEMENT OF ALL HER LEGAL POSITIONS JUDGE GINSBURG HAS BEEN HAILED AS THE THURGOOD MARSHALL OF THE WOMEN'S MOVEMENT BECAUSE OF HER WORK DURING THE 1970S AS HEAD OF THE ACLU'S WOMEN'S LAW PROJECT HER OBJECTIVE WAS TO ELIMINATE ALL FORMS OF EXPLICIT SEX DISCRIMINATION FROM OUR LAWS ON CONSTITUTIONAL EQUAL PROTECTION GROUNDS THIS FIRST WAVE OF MODERN FEMINISM STRESSED FORMAL EQUALITY WHILE SOMETIMES OVERLOOKING THE DISPARATE IMPACT OF SEXNEUTRAL LAWS INITIALLY HER PROGRAM RAISED AT MOST MODEST CONSTITUTIONAL BARRIERS TO SOUND SOCIAL REGULATION WHEN PRESSED FURTHER HOWEVER WE SEE THAT IT HAS CREATED SERIOUS DISLOCATIONS IN MAJOR GOVERNMENT PROGRAMS THE STORY BEGINS WITH HER VICTORY IN REED V REED 1971 WHERE A UNANIMOUS SUPREME COURT STRUCK DOWN AN OBSCURE PROVISION OF AN IDAHO LAW THAT PREFERRED MALES TO FEMALES IN CHOOSING AN ADMINISTRATOR FOR PERSONS DYING INTESTATE WITHIN A GIVEN ENTITLEMENT CLASS SONS OVER DAUGHTERS FATHERS OVER MOTHERS AND SO ON IN SO DOING THE COURT REJECTED IDAHO'S DEFENSE OF THE STATUTE BOTH ON THE GROUND OF ADMINISTRATIVE EASE AND ON THE GROUND THAT MEN WERE GENERALLY BETTER QUALIFIED THAN WOMEN HERE THE OUTCOME IS SURELY DEFENSIBLE ADMINISTRATIVE COSTS WERE LOW AND THE STATE MADE NO EFFORT TO SHOW THAT DECEDENTS GENERALLY PREFERRED MEN TO WOMEN AS EXECUTORS BUT IF THAT SHOWING COULD HAVE BEEN MADE THEN THE STATUTE SHOULD HAVE BEEN UPHELD THE STATE WOULD BE SETTING UP A DEFAULT RULE THAT BEST MIRRORS THE PREFERENCES OF ORDINARY CITIZENS WHO HAVE THE RIGHT TO CHOOSE EXECUTORS OF THEIR CHOICE JUDGE GINSBURG I SUSPECT WOULD DIFFER REED WAS IMPORTANT FOR PAVING THE WAY FOR THE EMERGING EQUALPROTECTION ANALYSIS OF SEX DISCRIMINATION FIRST IT MADE CLEAR THAT ANY FORM OF EXPLICIT SEXBASED DISTINCTION IS SUBJECT NOT TO THE STRICT SCRUTINY OF RACE CASES BUT TO HEIGHTENED SCRUTINY NONETHELESS IT ALSO MADE CLEAR THAT THE SAVINGS OF ADMINISTRATIVE COSTS OR THE PRESERVATION OF ECONOMIC INCENTIVES NORMALLY WILL NOT SAVE THE LAW OFTEN THIS APPROACH CAN LEAD TO DOUBTFUL OR INCORRECT OUTCOMES THUS IN JUDGE GINSBURG'S NEXT CASE FRONTIERO V RICHARD 1973 ADIVIDED COURT STRUCK DOWN THE SYSTEM OF MILITARY DEPENDENT BENEFITS THAT KEPT LT SHARRON FRONTIERO'S HUSBAND FROM OBTAINING SPOUSAL BENEFITS WITHOUT PROOF OF DEPENDENCY WHILE MILITARY WIVES RECEIVED SUCH BENEFITS AS A MATTER OF COURSE THEREAFTER SHE PREVAILED IN CALIFANO V GOLDFARB 1977 WHERE THE COURT STRUCK DOWN A SIMILAR LAW DENYING SOCIAL SECURITY SURVIVORSHIP BENEFITS TO WIDOWERS BUT NOT WIDOWS WITHOUT PROOF OF DEPENDENCY THESE STATUTORY SCHEMES MADE A GOOD DEAL MORE SENSE THAN THE ONE IN REED IN JUSTIFYING SEXBASED CLASSIFICATIONS WHY MUST THE LAW TREAT UNLIKE CASES ALIKE IF 90 OF WOMEN WERE IN FACT DEPENDENT ON HUSBANDS AND ONLY 3 OF MEN ON WIVES ROUGHLY THE NUMBERS IN GOLDFARB THEN IT IS GOOD ECONOMICS NOT INSIDIOUS STEREOTYPES TO TREAT THE TWO SITUATIONS DIFFERENTLY TO REQUIRE PROOF OF DEPENDENCY FOR WIVES CREATES AN UNNECESSARY ADMINISTRATIVE HEADACHE SINCE AN AUTOMATIC RULE ALREADY REACHES THE RIGHT RESULT 90 OF THE TIME BETTER TO SPARE THE PAPERWORK AND USE THE SAVINGS TO INCREASE THE OVERALL BENEFIT LEVELS TO PAY BENEFITS TO MALE SPOUSES WITHOUT SCRUTINY LEADS TO MASSIVE OVERPAYMENTS REQUIRING EITHER ADDITIONAL BUDGET APPROPRIATIONS OR BENEFIT REDUCTIONS THE SEX CLASSIFICATIONS IN FRONTIERO AND GOLDFARB AREPERFECTLY SENSIBLE AND SHOULD HAVE BEEN SUSTAINED UNLESS AND UNTIL THE UNDERLYING BEHAVIORAL PATTERNS SHIFT FOR SYMBOLIC REASONS THE LAWS STRUCK DOWN IN REED AND FRONTIERO AND PERHAPS GOLDFARB PROBABLY WOULD HAVE BEEN REPEALED EVEN IF THE SUPREME COURT HAD DONE NOTHING CRAIG V BOREN 1976 HOWEVER MAY BE A DIFFERENT STORY OKLAHOMA'S LIQUOR LAW ALLOWED 32 BEER TO BE SERVED TO FEMALES 18 AND OVER BUT ONLY TO MALES WHO HAD REACHED 21 AGAIN AN EXPLICIT SEX CLASSIFICATION BUT AGAIN WITH A CLEAR STATE JUSTIFICATION THE RATE OF ALCOHOLINDUCED ARRESTS WAS ROUGHLY 10 TIMES AS GREAT FOR MALES AS FEMALES ACCIDENT RATES WERE ALSO MUCH HIGHER THE SOCIAL GAIN OF DENYING ALCOHOL TO MALES AT 18 IS FAR GREATER THAN THE GAIN FROM DENYING IT TO FEMALES AT 18 A RULE THAT KEEPS WOMEN FROM DRINKING UNTIL 21 IMPOSES UNNECESSARY DEPRIVATION A RULE THAT ALLOWS MEN TO DRINK AT 18 CREATES UNNECESSARY RISK CLEARLY THE LAW IS NOT DESIGNED TO OPPRESS OR STIGMATIZE MEN AND NOTHING IN THE CONSTITUTION FORBIDS THIS SENSIBLE ACCOMMODATION CRAIG V BOREN REVEALS THE ACHILLES HEEL OF JUDGE GINSBURG'S APPROACH TO STATE REGULATION OUTMODED STEREOTYPES ARE ONE THING BUT ACCURATE STATISTICAL GENERALIZATIONS ARE QUITE ANOTHER THEFAILURE OF JUDGE GINSBURG'S 1970S JURISPRUDENCE TO CAPTURE THE BROAD GULF BETWEEN REED AND CRAIG SADDLES US WITH INFERIOR SOCIAL OUTCOMES FOR THE SMALL BENEFIT OF STRIKING DOWN SEXBASED STATUTES THAT ARE LIKELY TO FALL ANYHOW OF THEIR OWN POLITICAL WEIGHT JUDGE GINSBURG AND OTHERS ARE RIGHT TO INSIST ON HEIGHTENED CONSTITUTIONAL SCRUTINY OF EXPLICIT SEX DIFFERENCES AND RIGHT TO NOTE THAT A SEXBLIND JURISPRUDENCE SHOULD NOT PLAY FAVORITES FOR EITHER WOMEN OR MEN HER INSISTENCE ON FORMAL SEXBLIND STANDARDS THUS OFFERS A USEFUL BARRIER AGAINST GOVERNMENTIMPOSED AFFIRMATIVE ACTION BUT AT THE SAME TIME ITS RIGIDITY IS AT ODDS WITH IMPORTANT SOCIAL AND BEHAVIORAL DIFFERENCES BETWEEN MEN AND WOMEN AS APPLIED TO THE BROAD RUN OF CASES IT WORKS SOMETIMES TO STRIKE DOWN LAWS THAT ASSIST MEN AND SOMETIMES LAWS THAT ASSIST WOMEN OVER THE LONG RUN HER APPROACH TENDS TO REQUIRE THE USE OF INEFFICIENT LAWS THAT WORK TO THE DISADVANTAGE OF MEN AND WOMEN ALIKE MR EPSTEIN TEACHES LAW AT THE UNIVERSITY OF CHICAGO HIS BOOK BARGAINING WITH THE STATE WILL BE PUBLISHED THIS SUMMER BY PRINCETON UNIVERSITY PRESS SEE RELATED LETTER LETTERS TO THE EDITOR INSIDIOUS STEREOTYPES' CORRODE EQUAL RIGHTS WSJ AUG 12 1993 9307210091 YY93 MM08 CORRECTION THE NAME OF A 1973 SUPREME COURT CASE WAS MISSTATED IN A JULY 21 RULE OF LAW COLUMN SEXBLIND JURISPRUDENCE ISN'T ALWAYS FAIR AND IN A LETTER TO THE EDITOR YESTERDAY THE CORRECT NAME IS FRONTIERO V RICHARDSON WSJ AUG 13 1993 9308110142 930811 TECHNOLOGY & HEALTH UK DEMANDS 25 PRICE CUT IN DRUGS IT BUYS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL JOINING THE PHARMACEUTICAL PRICING CRACKDOWN RIPPLING ACROSS EUROPE THE UK GOVERNMENT DEMANDED A 25 REDUCTION IN THE PRICE OF MEDICINES PURCHASED BY BRITAIN'S NATIONAL HEALTH SERVICE THE PRICE CUTS WHICH ARE EXPECTED TO SAVE ABOUT 85 MILLION 1267 MILLION OUT OF AN ANNUAL DRUG BILL OF 34 BILLION ARE LIKELY TO WIN INDUSTRY SUPPORT AFTER SOME INITIAL PROTESTS ANALYSTS PREDICTED LONDON MARKETS HAVE SWIRLED THIS WEEK WITH RUMORS THAT BRITAIN'S DRUG PRICE CUTS MIGHT BE A HEFTY 5 YET BY CONTRAST WITH MONDAY WHEN DRUG COMPANY STOCKS NOSEDIVED INVESTORS SEEMED TO TAKE THE LATEST DRUG PRICING NEWS IN STRIDE SMITHKLINE BEECHAM PLC'S FLAGSHIP CLASS A STOCK SKIDDED SEVEN PENCE TO 431 PENCE 643 IN LATE LONDON TRADING BUT BOTH GLAXO HOLDINGS PLC AND WELLCOME PLC STOCK RECOVERED SOME OF MONDAY'S SHARP DECLINES ALL THREE COMPANIES' SHARES REMAIN WELL BELOW LEVELS AT THE END OF LAST WEEK A PHARMACEUTICALS ANALYST AT ONE MAJOR LONDON SECURITIES FIRM SAID THERE'S A LOT OF POLITICS IN THE PRICING PROPOSALS IT'S A WARNING SHOT SO THE GOVERNMENT APPEARS TO BE DOING SOMETHING ABOUT HEALTHCARE COSTS WITHOUT REALLY HURTING COMPANIES THAT MUCH TOUGH COSTCONTAINMENT MEDICINE PRESCRIBED BY GERMANY AND ITALY HAS SENT DRUG SALES SKIDDING SHARPLY IN THOSE COUNTRIES SO FAR THIS YEAR CLOBBERED BY THE GERMAN AND ITALIAN DECLINES PHARMACEUTICAL SALES IN EUROPE'S SEVEN BIGGEST MARKETS TUMBLED 6 DURING THIS YEAR'S FIRST FOUR MONTHS SOME DETAILS IN THE DRUG PRICING PLAN REMAIN SKETCHY THE 25 REDUCTION WOULD APPLY TO PRICES PREVAILING OCT 1 BUT COMPANIES CAN ELECT TO REDUCE THE PRICE OF EACH OF THEIR PRODUCTS INDIVIDUALLY OR CUT SOME PRICES MORE THAN 25 WHILE INCREASING PRICES OF OTHER DRUGS AS LONG AS AGGREGATE SALE PRICES TO THE NATIONAL HEALTH SERVICE FALL 25 THE LOWER PRICES THEN WOULD BE FROZEN FOR THREE YEARS ANALYSTS SAID THE BIG LOSERS FROM THE PRICING PROPOSALS LIKELY WOULD BE SMALL PREDOMINANTLY DOMESTIC DRUG COMPANIES THAT SELL A HANDFUL OF AGING DRUGS TO THE NATIONAL HEALTH SERVICE A WELLCOME SPOKESMAN WHILE EMPHASIZING THE COMPANY IS BY NO MEANS HAPPY WITH THE PRICE REDUCTIONS NOTED THE UK ACCOUNTS FOR A MERE 5 OF WORLDWIDE SALES 9308110140 930811 MARKETING PEPSI PUTS SPOTLIGHT ON NEW PACKAGING BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL PACKAGING IS THE NAME OF THE MARKETING GAME AT PEPSICO INC THIS SUMMER HAVING ALREADY TINKERED WITH THE CONTENTS OF PEPSICUTTING CALORIES REMOVING CAFFEINE CHANGING THE COLOR THE COMPANY IS NOW FOCUSED ON NEW BOXES BOTTLES AND CANS THUS PITTSBURGH SHOPPERS CAN BUY THE CUBE A NEW CARDBOARD CONTAINER THAT HOLDS 24 CANS OF PEPSI IN BIRMINGHAM ALA AND CLEVELAND THERE IS PEPSI JR A 12OUNCE RESEALABLE BOTTLE IN NORTHERN CALIFORNIA SHOPPERS CAN TRY PEPSI MINI A COMPACT EIGHTOUNCE CAN AND THEN THERE IS THE BIG SLAM A ONELITER BOTTLE OF POP THAT STANDS ALONG WITH BASKETBALL'S 7FOOT4INCH SHAQUILLE O'NEAL AT THE CENTER OF PEPSI'S SUMMER AD CAMPAIGN PEPSI EXECUTIVES WON'T PREDICT FOR THE RECORD WHAT THE INNOVATIONS MIGHT DO FOR SALES BUT THEY CALL THE NEW PACKAGES PARTICULARLY THE CUBE A SIGNIFICANT DEVELOPMENT FOR THE INDUSTRY WE DO EXPECT A LIFT FROM THAT SAYS A SPOKESMAN WHILE THE AVERAGE AMERICAN DRINKS 48 GALLONS OF SODA A YEAR THE RATE OF GROWTH IN SOFTDRINK SALES HAS SLOWED TO BETWEEN 2 AND 3 ANNUALLY FROM 5 TO 7 IN THE 1980S THE DROP HAS BEEN BLAMED MOST OFTEN ON THE WEAK ECONOMY AND EXTENDED PERIODS OF BAD WEATHER OTHERS POINT TO THE GROWING POPULARITY OF ALTERNATIVE BEVERAGES LIKE ICED TEAS FRUITFLAVORED DRINKS AND CARBONATED WATERS PRICING HAS ALWAYS BEEN ONE WAY THE BEVERAGE INDUSTRY COULD PULL ITSELF OUT OF A SLUMP SAYS BRUCE OMAN PRESIDENT OF MARKETING SERVICES GROUP A PRODUCTDEVELOPMENT CONSULTING FIRM IN ST ROSE LA DISCOUNTING HOWEVER ONLY WORKS FOR SO LONG TO KEEP POSTING 5 AND 6 SALES INCREASES BECOMES VERY VERY DIFFICULT TO DO MR OMAN SAYS THUS PACKAGING IS AN ELEMENT THAT HAS BECOME INCREASINGLY IMPORTANT IN A CROWDED MARKET SAYS MICHAEL BELLAS PRESIDENT OF BEVERAGE MARKETING CORP A CONSULTING FIRM IN NEW YORK PACKAGING NOW COMMUNICATES SOMETHING TO THE CONSUMER IT COULD BE VALUE PURITY OR QUALITY HE SAYS BEFORE YOU HAD A 12OUNCE CAN AND THAT WAS IT INDEED PACKAGING HAS BEEN RESPONSIBLE FOR SOME OF THE LARGEST INCREASES IN SALES IN THE SOFTDRINK INDUSTRY NOW TAKEN FOR GRANTED THE SIXPACK AND TWOLITER BOTTLE ARE COMPARATIVELY RECENT CHANGES IN THE RETAIL LANDSCAPE TODAY BUYING PACKS OF SIX 12 OR 24 CANS OF SODA IS ALMOST SECOND NATURE BY CONTRAST THE SIXPACK IS JUST NOW FINDING FAVOR IN EUROPE MANY EUROPEANS STILL BUY ONE OR TWO CANS OF SODA AT A TIME WHEN GROCERY SHOPPING TODAY PEPSI COCACOLA CO AND OTHER FOOD AND BEVERAGE CONCERNS APPEAR TO BE FOLLOWING TWO STRATEGIES WITH THEIR PACKAGING SAYS MR BELLAS THERE IS PROPRIETARY PACKAGING WHERE THE CONTAINER ADDS SOME VALUE OR IMAGE TO THE PRODUCT COKE'S PATENTED CONTOURED BOTTLE WITH BUILTIN NOSTALGIA IS ONE EXAMPLE EARLIER THIS YEAR THE ATLANTABASED COMPANY SAID IT PLANNED TO DISTRIBUTE A BIGGER PLASTIC VERSION OF ITS ORIGINAL 65OUNCE CURVED GLASS CONTAINER THEN THERE IS THE PUSH TO PACKAGE BEVERAGES IN PARTICULAR RETAIL FORMATS LIKE 30CAN AND 36CAN PACKAGES SOLD IN WAREHOUSE CLUBS PEPSI IS PURSUING BOTH STRATEGIES PROVIDING SEVERAL NEW SIZES OF SOFT DRINKS AND THEN GIVING THEM BY MEANS OF A NAME FOR EXAMPLE AN IMAGE OR IDENTITY OF THEIR OWN BRIAN SWETTE PEPSI'S SENIOR VICE PRESIDENT FOR NEW BUSINESS SAYS THE CHANGES ARE PART OF A PLAN TO DEVELOP THE RIGHT PACKAGING FOR THE RIGHT OCCASIONS THE BIG SLAM FOR INSTANCE WHICH SPORTS A WIDE MOUTH IS DESIGNED TO APPEAL TO INDIVIDUALS WHO ARE PLAYING HARD AND HAVE A BIG THIRST SAYS MR SWETTE THE PEPSI MINI IS WHAT THE COMPANY DESCRIBES AS A PERSONALIZEDSIZE CONTAINER IDEAL FOR THOSE WHO REGULARLY FIND THEMSELVES UNABLE TO FINISH A 12OUNCE SERVING IN ONE SITTING THE CUBE ACCORDING TO RIVERWOOD INTERNATIONAL THE ATLANTABASED COMPANY THAT DESIGNED THE PACKAGE ANSWERS A SPECIFIC COMPLAINT CUSTOMERS HAVE GRIPED FOR YEARS THAT THE STANDARD 24PACK BOX IS DIFFICULT TO CARRY AND THAT THE CANS SLIDE OUT ONCE THE BOX IS OPENED WHAT'S MORE BECAUSE OF THE WAY THE CANS ARE PLACED INSIDE THEY ACT LIKE LITTLE COOKIE CUTTERS AND LEAVE CIRCULAR IMPRINTS ON THE PACKAGE SAYS GARY PINCHON SENIOR VICE PRESIDENT FOR NORTH AMERICAN PACKAGING AT RIVERWOOD BY THE TIME THE CONSUMER GETS IT IN THE STORES HE SAYS THE GRAPHICS ARE OFTEN BEATEN UP PRETTY GOOD THE CUBE STACKS CANS VERTICALLY RATHER THAN HORIZONTALLY KEEPING THE CONTAINERS FROM SLIPPING OUT IT ALSO COMES WITH A HANDLE AND IS NARROWER MAKING IT EASIER TO LIFT AND CARRY OUT OF 1000 PEOPLE WHO CALLED THE COMPANY'S TOLLFREE NUMBER THE FIRST MONTH OF THE TEST 88 SAID THEY PREFERRED THE CUBE OVER THE STANDARD CASE ACCORDING TO PEPSI THE COMPANY PLANS TO INTRODUCE THE PACKAGE IN OTHER MARKETS LATER THIS SUMMER AND FALL NOT SURPRISINGLY SOME OF PEPSI'S COMPETITORS PROFESS NOT TO UNDERSTAND WHAT ALL THE FUSS IS ABOUT HAROLD TABER JR PRESIDENT OF HANSEN BEVERAGE CO A NATURALSODA COMPANY IN ANAHEIM CALIF WITH SALES LAST YEAR OF ABOUT 235 MILLION SAYS THE JURY IS STILL OUT ON MANY OF PEPSI'S PACKAGING EXPERIMENTS FOR EXAMPLE THE BIG SLAM WITH ITS WIDE MOUTH PLAYS OFF THE GULPABILITY OF NONCARBONATED DRINKS MR TABER SAYS BUT FILLING SUCH A CONTAINER WITH A CARBONATED BEVERAGE HE CLAIMS DOESN'T MAKE SENSE YOU CAN'T GULP A CARBONATED BEVERAGE HE EXPLAINS IT BURNS GOING DOWN A PEPSI SPOKESMAN REPLIES THAT THE BIG SLAM WAS INTRODUCED AS A RESULT OF CONSUMER RESEARCH INDICATING A PREFERENCE FOR A WIDEMOUTH CONTAINER MR TABER SAYS THE 12OUNCE ALUMINUM CAN WHICH HE ESTIMATES CAPTURES ABOUT 70 OF THE SOFTDRINK BUSINESS REMAINS THE BEST AND MOST COSTEFFICIENT PACKAGE AROUND PEPSI'S MR SWETTE AGREES THAT THE 12OUNCE CAN REMAINS ONE OF THE BEST PACKAGES FOR SOFT DRINKS BUT HE SAYS THERE IS PLENTY OF ROOM FOR INNOVATION AFTER ALL A 48 BILLION INDUSTRY HE SAYS CAN ALWAYS AFFORD TO ADD ADDITIONAL PACKAGING 9308110139 930811 INTERNATIONAL BRIEF PSA PEUGEOT CITROEN SA CONSOLIDATED SALES DECLINED BY 11 IN FIRST SIX MONTHS FRENCH AUTO MAKER PSA PEUGEOT CITROEN SA SAID ITS 1993 FIRSTHALF CONSOLIDATED SALES FELL 11 FROM THEIR YEAREARLIER LEVEL TO 7305 BILLION FRANCS 1227 BILLION REFLECTING THE COLLAPSE OF THE EUROPEAN CAR MARKET FRENCH COMPANIES ARE REQUIRED TO POST QUARTERLY SALES PEUGEOT SAID THE SIXMONTH FIGURE MASKED A RELATIVE IMPROVEMENT IN THE SECOND QUARTER IN WHICH SALES WERE DOWN ONLY 68 COMPARED WITH THE SAME 1992 PERIOD AND WERE UP 38 FROM THE 1993 FIRST QUARTER THE FRENCH COMPANY SAID IT BOOKED 454700 NEW ORDERS FOR CARS IN THE SECOND QUARTER OF 1993 DOWN ONLY 10 FROM THE YEAREARLIER PERIOD 9308110138 930811 RECALL BY SATURN COULD TARNISH ITS REPUTATION GM UNIT TRIES TO CONTAIN DAMAGE WHILE FIXING DEFECT TIED TO 34 FIRES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S SATURN SUBSIDIARY SCRAMBLING TO FIX A DEFECT LINKED TO 34 CAR FIRES IS RECALLING EVERY ONE OF THE 352767 VEHICLES IT BUILT BEFORE LAST APRIL 15 IN AN ACTION THAT COULD TARNISH ITS HARDWON REPUTATION FOR SUPERIOR QUALITY SATURN LAUNCHED THE RECALL ON ITS OWN INITIATIVE WITH A MAILING LAST WEEK THAT INFORMED CUSTOMERS THAT A FAULTY GENERATOR COULD SHORTCIRCUIT AND CAUSE A FIRE IN THE ENGINE COMPARTMENT THE LETTER WENT OUT TO OWNERS OF ALL SATURN VEHICLES BUILT SINCE PRODUCTION BEGAN IN THE FALL OF 1990 REPAIRS TO THE WIRING SYSTEM COULD COST SATURN AS MUCH AS 8 MILLION BUT ANALYSTS SAID SATURN'S MORE PRESSING CONCERN IS CONTAINING DAMAGE TO ITS REPUTATION SATURN WHICH IS STRIVING TO BREAK EVEN THIS YEAR HAS RAISED PRICES TWICE THIS YEAR IN AN EFFORT TO CAPITALIZE ON ITS STRONG IMAGE FOR QUALITY AND CUSTOMER SERVICE SATURN HAD TWO OTHER WELLPUBLICIZED RECALLS EARLY IN ITS PRODUCTION STARTUP ONE INVOLVING POTENTIALLY DEFECTIVE COOLANT AND THE OTHER RELATED TO FAULTY SEATS THAT COULD LURCH BACKWARD UNEXPECTEDLY SATURN SCORED POINTS WITH ITS FORTHRIGHT HANDLING OF THE COOLANT PROBLEM WHEN IT AGREED IN MAY 1991 TO REPLACE 1836 CARS SHIPPED WITH BAD ANTIFREEZE CONTINUED COMPLAINTS ABOUT SUDDENLY COLLAPSING SEATS HOWEVER PROMPTED THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION LAST MONTH TO INTENSIFY ITS INVESTIGATION OF THAT PROBLEM WHICH COULD AFFECT MORE THAN 200000 SATURNS AND THIS RECALL CLEARLY IS MORE SEVERE BECAUSE OF THE LARGE NUMBER OF VEHICLES AFFECTED AND BECAUSE IT INVOLVES FIRES SAID GEORGE HOFFER A PROFESSOR AT VIRGINIA COMMONWEALTH UNIVERSITY WHO HAS STUDIED THE EFFECTS OF RECALLS ON SALES SALES COULD SUFFER IF YOU GET A SERIES OF MAJOR ONES YOU CAN GET A REPUTATION FOR POOR QUALITY MR HOFFER SAID IN THE PAST HE ADDED SEVERE RECALLS INVOLVING FIRES HAVE LED TO BRIEF DOWNTURNS IN SALES OF THE AFFECTED CARS THE DEFECT THAT LED SATURN TO LAUNCH THE LATEST RECALL WHICH WAS REPORTED YESTERDAY BY THE DETROIT NEWS AND USA TODAY ARISES FROM A PROBLEM WITH THE DESIGN OF THE CAR'S ELECTRICAL SYSTEM CURRENTLY WIRING HARNESSES CONNECTING A SATURN'S GENERATOR TO ITS STARTER DON'T COME EQUIPPED WITH A FUSE CONNECTION THAT PROTECTS THE CAR'S WIRING SYSTEM FROM POWER SURGES WITHOUT THE FUSE A POWER SURGE FROM A DEFECTIVE GENERATOR CAN CAUSE THE WIRES TO BURN AND POSSIBLY IGNITE A LARGER FIRE UNDER THE HOOD SATURN SAID IT RECEIVED REPORTS DATING BACK TO 1991 OF 34 UNDERTHEHOOD FIRES CAUSED BY POWER SURGES RUNNING THROUGH THE DEFECTIVE HARNESSES THE GM SUBSIDIARY IS ASKING CUSTOMERS TO RETURN AFFECTED VEHICLES TO SATURN DEALERS WHERE THEY CAN BE OUTFITTED AT NO CHARGE WITH A WIRING HARNESS THAT IS EQUIPPED WITH THE PROTECTIVE FUSE CONNECTION WE THINK BASED ON THE LOW FREQUENCY OF OCCURENCE THAT THIS WILL TAKE CARE OF THE PROBLEM AT THIS TIME SAID A SATURN SPOKESMAN THE FIX HOWEVER MAY NOT BE COMPLETE SATURN SAID ITS PROPOSED REPAIRS ONLY ADDRESS THE SAFETY HAZARD POSED BY THE DEFECTIVE WIRING HARNESS NOT THE GENERATOR THAT IS THE SOURCE OF THE VEHICLE'S SHORT CIRCUITS ALTHOUGH SATURN BEGAN EQUIPPING ITS CARS WITH REDESIGNED WIRING HARNESSES ON APRIL 15 IT STILL USES THE SAME GENERATOR BUILT BY GM'S DELCO REMY UNIT THAT WAS INVOLVED IN EACH OF THE 34 FIRES SATURN SAID THE FUSE FIX WILL ELIMINATE THE POSSIBIITY OF SHORT CIRCUITS CAUSING FIRES HOWEVER THE SATURN SPOKESMAN ACKNOWLEDGED THAT THE GENERATORS STILL COULD SHORTCIRCUIT IN THE WORST CASE THAT COULD CAUSE THE BATTERY TO DISCHARGE AND FAIL POTENTIALLY LEAVING A MOTORIST STRANDED IT ALSO ISN'T CLEAR THAT GM ENGINEERS HAVE FOUND THE ROOT OF THE PROBLEM DELCO REMY CONTENDS ITS GENERATOR WORKS FINE WE HAVE MADE IT FOR MANY YEARS AND SATURN IS THE ONLY APPLICATION WHERE WE HAVE EVER HAD A PROBLEM SAID A DELCO REMY SPOKESMAN THAT IS WHY WE ARE DOWN THERE WITH SATURN RIGHT NOW TRYING TO DETERMINE WHY IT IS HAPPENING MEANWHILE SATURN MUST ALSO ADDRESS THE GREATER TASK OF KEEPING ITS VALUABLE IMAGE INTACT AT A TIME WHEN RIVALS ARE GEARING UP NEW ASSAULTS IN JUST SIX MONTHS CHRYSLER CORP PLANS TO LAUNCH ITS HIGHLY TOUTED NEW SMALL COMPACT THE NEON DIRECTLY AT SATURN BUYERS WHO WANT HIGHQUALITY USBRAND CARS THEY ARE TRYING TO EMULATE SATURN FROM BOTH A PRODUCT AND CUSTOMER SATISFACTION STANDPOINT SAID CHRISTOPHER CEDERGREN AN INDUSTRY ANALYST WITH AUTOPACIFIC INC IN THOUSAND OAKS CALIF THAT IS GOING TO BE A MAJOR COMPETITOR SATURN CLEARLY HOPES IT WILL SCORE POINTS FOR ACTING QUICKLY TO ACKNOWLEDGE THE PROBLEM WITH FIRES THAT'S IN SHARP CONTRAST TO GM'S HANDLING OF REPORTS IN THE LATE 1980S THAT ITS PONTIAC FIERO TWOSEATERS WERE EXCESSIVELY PRONE TO UNDERTHEHOOD FIRES BY THE TIME GM ISSUED ITS FIRST RECALL OF FIEROS UNDER GOVERNMENT PRODDING IN 1987 FIEROS WERE CATCHING FIRE AT THE RATE OF ONE IN EVERY 400 CARS BY CONTRAST THE RATE OF INCIDENCE IN THE SATURN CASE IS LESS THAN ONE IN 10000 VEHICLES SATURN IS WILLING TO TAKE THE BAD NEWS IN EXCHANGE FOR DEVELOPING A GOOD REPUTATION SAID MARGARETHE WIERSEMA A PROFESSOR WHO STUDIES THE AUTO INDUSTRY FOR THE UNIVERSITY OF CALIFORNIAIRVINE SATURN INCLUDED ITS DEALERS EARLY ON IN THE RECALL PROCESS BRIEFING THEM VIA SATELLITE LAST WEEK BEFORE LETTERS WERE MAILED OUT TO CONSUMERS SATURN DEALERS ACROSS THE COUNTRY NOW ARE PREPARING FOR THE COMING ONSLAUGHT OF CUSTOMER INQUIRIES BY ADDING STAFF EXTENDING OPERATING HOURS AND EVEN PLANNING SOME SPECIAL ENTERTAINMENT FOR CUSTOMERS WAITING FOR REPAIRS I THINK WE WILL HAVE SOME BINGO GAMES WITH SOME GIVEAWAYS SAYS JIM HETHERINGTON OWNER OF A SATURN FRANCHISE IN DANBURY CONN THUS SATURN CLEARLY HOPES TO MAKE THE BEST OF A BAD SITUATION IF YOU DON'T HANDLE A RECALL PROPERLY IT CAN DAMAGE YOUR IMAGE SAID MR CEDERGREN BUT IN MANY CASES IT CAN HAVE A POSITIVE IMPACT AND THAT IS WHAT SATURN IS LOOKING AT HERE 9308110137 930811 WHO'S NEWS RANGER OIL LTD RANGER OIL LTD CALGARY ALBERTA FRED J DYMENT PRESIDENT OF THIS OIL AND GAS PRODUCTION CONCERN WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER MR DYMENT 44 YEARS OLD BECAME PRESIDENT IN 1991 RANGER'S BOARD TOOK THE ROLE OF CHIEF EXECUTIVE SINCE THE DEATH IN JUNE 1991 OF JACK PIERCE THE COMPANY'S FOUNDER CHAIRMAN AND CHIEF EXECUTIVE 9308110136 930811 INTERNATIONAL LLOYD'S REBEL MEMBERS DEFEATED CLEARING WAY FOR NEW BUSINESS PLAN CORPORATE CAPITAL BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON PUT DOWN REBEL MEMBERS CLEARING THE WAY FOR A BUSINESS PLAN THAT AIMS TO MAKE THE INSURANCE SYSTEM PROFITABLE IN 1995 A LLOYD'S SPOKESMAN SAID REBEL MEMBERS WERE DEFEATED ABOUT TWOTOONE ON TWO RESOLUTIONS THE FIRST PROPOSAL WOULD HAVE FORCED LLOYD'S TO PAY DAMAGES TO MEMBERS THE SECOND WOULD HAVE ALLOWED CORPORATE CAPITAL INTO LLOYD'S SUBJECT TO EXISTING MEMBERS BEING COMPENSATED FOR RECENT LOSSES MEMBERS OF LLOYD'S WHO ARE KNOWN AS NAMES FORCED BOTH RESOLUTIONS ON THE BALLOT OF AN EXTRAORDINARY GENERAL MEETING LAST MONTH MANY NAMES HAVING SUFFERED HUGE LOSSES IN RECENT YEARS CONTENDED THAT NEGLIGENCE WAS AT THE ROOT OF LLOYD'S PROBLEMS HAD THEY PASSED THE RESOLUTIONS WOULD HAVE RESULTED IN DAMAGING LITIGATION AGAINST LLOYD'S AS WELL AS DILUTED THE IMPACT OF NEW CAPITAL YET TO BE RAISED THOSE PEOPLE PROMOTING CAUSES INJURIOUS TO LLOYD'S HAVE BEEN ROUNDLY DEFEATED THE SPOKESMAN SAID MEMBERS DID APPROVE A RESOLUTION EXPRESSING SUPPORT FOR THE BUSINESS PLAN PROPOSED BY MANAGEMENT IN APRIL AND SUPPORT FOR RAISING CAPITAL FROM CORPORATIONS THIS WILL BE THE FIRST TIME COMPANIES HAVE PARTICIPATED IN THE INSURANCE GROUP LLOYD'S ISN'T A COMPANY BUT RATHER A MARKET IN AND OF ITSELF LLOYD'S MEMBERS UNDERWRITE RISK IN RETURN FOR PREMIUM AND INVESTMENT INCOME AND PROFIT IN GOOD YEARS BUT IF RETURNS DECLINE MEMBERS FACE UNLIMITED PERSONAL LIABILITY TO PAY LOSSES WE BELIEVE THAT THIS VOTING RESULT SHOULD REASSURE NAMES POLICY HOLDERS AND ALL OTHER INTERESTED PARTIES THAT LLOYD'S IS MOVING FORWARD SAID NEIL SHAW CHAIRMAN OF THE ASSOCIATION OF LLOYD'S MEMBERS ACCORDING TO THE BUSINESS PLAN LLOYD'S HOPES TO MAKE A 900 MILLION 134 BILLION PROFIT IN 1995 THE SPOKESMAN SAID THE GROUP NOW WILL NEED TO APPROVE BYLAW CHANGES ENABLING LLOYD'S TO RAISE CORPORATE CAPITAL INDEPENDENT ESTIMATES HAVE PUT THE AMOUNT OF CAPITAL TO BE RAISED AT BETWEEN 300 MILLION AND 500 MILLION 9308110135 930811 CANADIAN HOUSING STARTS RISE OTTAWA CANADIAN HOUSING STARTS ROSE 11 IN JULY FROM JUNE TO A SEASONALLY ADJUSTED ANNUAL RATE OF 162300 UNITS CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID JULY HOUSING STARTS REACHED THEIR HIGHEST LEVEL SINCE APRIL 9308110134 930811 INTERNATIONAL SWEDISH INDUSTRIAL PRODUCTION STOCKHOLM SWEDEN'S INDUSTRIAL PRODUCTION ROSE 17 IN MAY FROM APRIL AND INCREASED 03 FROM MAY A YEAR EARLIER ACCORDING TO PRELIMINARY FIGURES RELEASED BY SCB THE NATIONAL STATISTICS AGENCY 9308110133 930811 LETTERS TO THE EDITOR BRUTAL JUSTICE IN NORTHERN IRELAND YOUR PAGE ONE ARTICLE ON KNEECAPPINGS IN NORTHERN IRELAND BELFAST DISCIPLINE JULY 6 WAS AN EXCELLENT AND DEVASTATING ACCOUNT OF THE SAVAGERY PERPETUATED BY BOTH SIDES IN THE ONGOING CONFLICT IN ADDITION TO ORDERING APPALLING MAIMINGS AND SHOOTINGS THE PARAMILITARIES' INFORMAL JUSTICE SYSTEMS HAVE ACTUALLY BANISHED PEOPLE CHILDREN AS WELL AS ADULTS FROM NORTHERN IRELAND YOU FAILED TO SPELL OUT FULLY THE ROLE PLAYED BY THE ROYAL ULSTER CONSTABULARY RUC THE NORTHERN IRELAND POLICE THE RUC HAS LARGELY ABDICATED NORMAL POLICING IN SOME TROUBLED AREAS IN NORTHERN IRELAND INSTEAD IT CONCENTRATES ITS EFFORTS ON FIGHTING POLITICAL VIOLENCE POLICE IN TROUBLED AREAS TRAVEL IN ARMORED PERSONNEL CARRIERS OR PATROL WITH RIFLES BACKED UP BY SOLDIERS IN FULL BATTLE GEAR BECAUSE OF THE ABSENCE OF NORMAL POLICING PARAMILITARY GROUPS BOTH REPUBLICAN CATHOLIC AND LOYALIST PROTESTANT HAVE STEPPED IN TO FILL THE VACUUM OPERATING PARALLEL UNOFFICIAL CRIMINAL JUSTICE SYSTEMS THAT HANDLE COMPLAINTS OF ORDINARY NONPOLITICAL CRIME CAR THEFTS BURGLARIES ETC I HAVE BEEN TOLD BY BOTH PROTESTANTS AND CATHOLICS OF INSTANCES IN WHICH THEY CALLED POLICE TO REPORT A CRIME ONLY TO BE TOLD TO CALL THE ULSTER DEFENSE ASSOCIATION A PROTESTANT PARAMILITARY GROUP OR TO CALL THE IRA IRISH REPUBLICAN ARMY SIR HUGH ANNESLEY CHIEF CONSTABLE OF THE RUC HAS ACKNOWLEDGED THAT THE RUC DOES NOT CARRY OUT NORMAL POLICING IN SOME TROUBLED AREAS THE TERRORIST THREAT HAS INHIBITED THE DEGREE AND QUALITY OF CONTACT BETWEEN THE POLICE AND THE PUBLIC AND AT TIMES AND IN PLACES THE NATURE OF THE POLICE RESPONSE TO COMMUNITY NEEDS POLICING IN NORTHERN IRELAND IS DIFFICULT AND DANGEROUS CLOSE TO 300 POLICE OFFICERS HAVE BEEN KILLED SINCE 1969 IN THE TROUBLES BUT HELSINKI WATCH HAS CONCLUDED ON THE BASIS OF ITS MISSIONS TO NORTHERN IRELAND AND INTERVIEWS WITH PEOPLE ON ALL SIDES OF THE CONFLICT THAT UNLESS THE RUC RESUMES NORMAL POLICE WORK THE VACUUM LEFT BY POLICE INACTION WILL CONTINUE TO BE FILLED BY ARMED PARAMILITARY GROUPS USING BRUTAL TACTICS AGAINST THE PEOPLE OF NORTHERN IRELAND CATHOLICS AND PROTESTANTS ALIKE 9308110132 930811 INTERNATIONAL JAPAN'S NEW PRIME MINISTER PLEDGES TO CUT TRADE GAP BUT REJECTS US IDEAS BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S NEW PRIME MINISTER MORIHIRO HOSOKAWA SAID CUTTING THAT NATION'S TRADE SURPLUS IS ONE OF THE MAJOR PRIORITY ISSUES FOR HIS GOVERNMENT BUT HE REJECTED SEVERAL US SUGGESTIONS ON HOW TO ACCOMPLISH THAT GOAL FREE TRADE AND FREEMARKET ECONOMIC PRINCIPLES WILL BE THE VERY BASIS OF JAPAN'S TRADE POLICIES THE PREMIER SAID TUESDAY AT HIS FIRST NEWS CONFERENCE SINCE TAKING OFFICE THIS WEEK WHILE THE CLINTON ADMINISTRATION WANTS JAPAN TO SET BENCHMARKS TO MEASURE PROGRESS IN CUTTING THE SURPLUS MR HOSOKAWA SAID THE SETTING OF NUMERICAL TARGETS IS SOMEWHAT INAPPROPRIATE JAPAN'S SOLUTION TO THE TRADE PROBLEM HE SAID WILL BE TO BOOST DOMESTIC ECONOMIC GROWTH TO PROMOTE DEREGULATION TO IMPLEMENT POLICIES GIVING PRIORITY TO THE CONSUMER AND TO IMPROVE ACCESS TO THE JAPANESE MARKET HE DIDN'T ELABORATE MR HOSOKAWA WHO HEADS A NEW GOVERNING COALITION DIDN'T TAKE A TOUGHER STAND THAN THE LIBERAL DEMOCRATIC PARTY LEADERS HE FOLLOWS BUT NEITHER DID HE OFFER AN EASIER STANCE THAT SUGGESTS IT WILL TAKE TIME BEFORE THE CHANGES BROUGHT ABOUT BY THE LDP'S COLLAPSE LEAD TO THE MORE IMPORTFRIENDLY JAPAN THAT AMERICANS HOPE FOR MR HOSOKAWA ALSO DISMISSED AMERICAN PRESCRIPTIONS FOR PULLING JAPAN OUT OF RECESSION MEASURES THAT WASHINGTON BELIEVES WOULD CUT JAPAN'S TRADE IMBALANCE BY BOOSTING CONSUMER DEMAND IN JAPAN FOR IMPORTS ASKED ABOUT AN INCOME TAX CUT MR HOSOKAWA ANSWERED WE DON'T THINK THE CLIMATE PERMITS CONSIDERATION OF A TAX CUT ASKED IF HE SUPPORTS ISSUING DEFICIT BONDS TO INCREASE GOVERNMENT SPENDING HE SAID NO THAT IS SOMETHING WE MUST TRY TO AVOID AS MUCH AS POSSIBLE THE PRIME MINISTER ACKNOWLEDGED THAT THE ECONOMY IS IN A VERY DIFFICULT STATE BUT HE SAID IT WAS TOO SOON FOR THE GOVERNMENT TO OFFER MORE AID EARLIER THIS YEAR PARLIAMENT PASSED A SPECIAL FISCAL STIMULUS PACKAGE AND MR HOSOKAWA SAID THE TANGIBLE EFFECTS OF THAT SPENDING ARE YET TO APPEAR CLEARLY HE ADDED WE HAVE TO WATCH VERY CAREFULLY THE IMPLEMENTATION OF THAT PROGRAM BEFORE PROMOTING MORE SPENDING MR HOSOKAWA ALSO REITERATED SUPPORT FOR THE NATION'S BAN ON RICE IMPORTS THOUGH HE HELD OUT SOME HOPE FOR CHANGE QUESTIONING WHETHER RICE SELFSUFFICIENCY CAN BE MAINTAINED AS THE NUMBER OF FARMERS DECREASES RAPIDLY IN ONE CLEAR BREAK WITH THE PAST MR HOSOKAWA GAVE A FRANK ASSESSMENT OF JAPAN'S ROLE IN WORLD WAR II I MYSELF THINK THAT WAS A WAR OF AGGRESSION A WAR THAT WAS WRONG HE SAID MR HOSOKAWA'S GRANDFATHER SERVED AS PRIME MINISTER DURING SOME OF JAPAN'S MOST BRUTAL ASIAN INCURSIONS IN THE 1930S AND KILLED HIMSELF WHILE AWAITING A WARCRIMES TRIAL MR HOSOKAWA'S PREDECESSORS DISCUSSED JAPAN'S WAR GUILT ONLY VAGUELY AVOIDING THE WORD AGGRESSION THE PRIME MINISTER MADE CLEAR THAT HIS MAIN FOCUS WON'T BE ECONOMIC OR FOREIGN POLICY BUT DOMESTIC POLITICAL REFORM THE ISSUE THAT GOT HIM ELECTED 9308110131 930811 INTERNATIONAL NORWEGIAN CONSUMER PRICES STOCKHOLM NORWEGIAN CONSUMER PRICES FELL 01 IN THE FOUR WEEKS ENDED JULY 15 BRINGING THE ANNUALIZED INFLATION RATE TO 22 ACCORDING TO THE NATIONAL STATISTICS AGENCY IN THE JUNE 15JULY 15 PERIOD A YEAR EARLIER CONSUMER PRICES ROSE 01 AND THE ANNUALIZED RATE STOOD AT 25 ON JULY 15 1992 THE AGENCY SAID 9308110130 930811 SEI BEGINS MARKETING FUNDS WAYNE PA SEI CORP SAID IT STARTED A GROUP OF MUTUAL FUNDS AIMED AT RETAIL INVESTORS THE FUND GROUP CALLED PROVANTAGE FUNDS WILL BE SOLD THROUGH BANKS AND FINANCIAL PLANNERS THEY ARE THE FIRST RETAIL MUTUAL FUNDS MARKETED UNDER SEI'S NAME SEI A FINANCIAL AND INVESTMENT SERVICES FIRM ADMINISTERS MORE THAN 37 BILLION IN ASSETS 9308110129 930811 WHO'S NEWS WAITZER IS NAMED BY ONTARIO TO HEAD SECURITIES AGENCY BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO THE GOVERNMENT OF ONTARIO NAMED EDWARD WAITZER AS THE NEW CHAIRMAN OF THE ONTARIO SECURITIES COMMISSION CANADA'S LARGEST CAPITAL MARKETS REGULATORY BODY MR WAITZER 39 YEARS OLD IS A TORONTO SECURITIES LAWYER WHOSE PREVIOUS EXPERIENCE INCLUDES A STINT AT THE TORONTO STOCK EXCHANGE FIRST AS DIRECTOR OF POLICY DEVELOPMENT AND LATER AS VICE PRESIDENT OF LISTINGS AND DISTRIBUTIONS THIS IS A VERY FINE APPOINTMENT SAID PHILIP ANISMAN A TORONTO SECURITIES LAWYER HE'S GOT BROAD EXPERIENCE IN SECURITIES LAW AS WELL AS SOME BACKGROUND FROM THE REGULATORY SIDE MR WAITZER WHOSE APPOINTMENT REQUIRES APPROVAL BY A PROVINCIAL PARLIAMENTARY COMMITTEE COULD TAKE OVER AT THE OSC AS EARLY AS AUG 31 THE TERM OF OFFICE IS THREE YEARS AND HE WILL SUCCEED ROBERT WRIGHT 61 WHO IS RETIRING MR WAITZER'S FATHER PAUL CURRENTLY SERVES AS A COMMISSIONER OF THE OSC BUT ALSO WILL RETIRE BEFORE HIS SON TAKES OVER THE HELM MR WAITZER WILL TAKE UP HIS DUTIES AT A TIME WHEN THE SECURITIES REGULATOR IS UNDER PRESSURE TO COME TO GRIPS WITH A NUMBER OF THORNY ISSUES RANGING FROM CORPORATE DISCLOSURE OF EXECUTIVE COMPENSATION PACKAGES TO THE GROWING GLOBALIZATION OF SECURITIES MARKETS RECENTLY THE OSC HAS COME UNDER FIRE FROM SOME QUARTERS FOR ASSERTEDLY MOVING TOO SLOWLY TO ADDRESS PROBLEMS SURROUNDING BOUGHT DEALS THE PRACTICE WHEREBY A GROUP OF UNDERWRITERS PURCHASE STOCK FROM A CORPORATION FOR RESALE TO THE PUBLIC SOME BELIEVE THE REGULATORS HAVE BEEN TOO SLOW TO INSIST ON GREATER DISCLOSURE OF EXECUTIVE SALARIES AND PERKS IN MANAGEMENT PROXIES WHICH FALLS WELL BELOW THE DEGREE OF DISCLOSURE REQUIRED BY THE US SECURITIES AND EXCHANGE COMMISSION THE OSC ALSO HAS UNDERTAKEN WHAT SEEMS LIKELY TO BE A LENGTHY AND CONTENTIOUS CASE CHARGING ONE OF CANADA'S MOST AGGRESSIVE BROKERAGE HOUSES GORDON CAPITAL CORP WITH A NUMBER OF OFFENSES RELATED TO A SERIES OF BOND TRADES LAST WEEK IN A HIGHLY UNUSUAL MOVE THREE COMMISSIONERS REJECTED AN AGREEMENT REACHED BETWEEN THE OSC STAFF AND LAWYERS FOR GORDON AND ITS EXECUTIVES RULING THAT THE PENALTIES WEREN'T ADEQUATE DETAILS OF THE AGREEMENT WERE SEALED AND A HEARING IS SCHEDULED FOR NOVEMBER MR WAITZER SAYS HE WANTS TO SPEND SOME TIME WITH THE OSC STAFF AND COMMISSIONERS BEFORE IDENTIFYING THOSE AREAS HE CONSIDERS TO BE TOP PRIORITIES BUT HE NOTED THAT HE IS A STRONG BELIEVER IN SELFREGULATION BY THE SECURITIES INDUSTRY AND THAT HE BELIEVES THE ROLE OF THE OSC IS TO PROVIDE OVERSIGHT 9308110127 930811 INTERNATIONAL EASTERN GERMANY'S PRICES WIESBADEN GERMANY EASTERN GERMANY'S CONSUMER PRICE INDEX WAS FLAT IN THE FOUR WEEKS TO MIDJULY BUT WAS UP 89 FROM A YEAR EARLIER THE STATE STATISTICS OFFICE HERE SAID THE OFFICE'S INDEX STOOD AT 1314 COMPARED WITH 1314 A MONTH EARLIER AND 1207 A YEAR EARLIER THE INDEX IS BASED ON PRICES FROM THE SECOND HALF OF 1990 AND THE FIRST HALF OF 1991 EQUALING 100 9308110126 930811 AT&T SIGNS 100 MILLION PACT NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT SIGNED A 100 MILLION AGREEMENT WITH THE OPERATOR OF 92 RURAL TELEPHONE COMPANIES TO MODERNIZE ITS NETWORK IN 29 STATES AT&T NETWORK SYSTEMS WILL PROVIDE THE EQUIPMENT OVER SEVEN YEARS TO TDS TELECOM INCLUDING DIGITAL SWITCHING SYSTEMS AND COMPACT DIGITAL EXCHANGES TDS TELECOM IS THE TELEPHONE SUBSIDIARY OF TELEPHONE & DATA SYSTEMS A CHICAGO DIVERSIFIED COMMUNICATIONS FIRM 9308110125 930811 FOKKER POSTS 1STHALF NET LOSS AMSTERDAM DUTCH AEROSPACE GROUP FOKKER NV SWUNG TO A NET LOSS OF 127 MILLION GUILDERS 665 MILLION IN THE FIRST HALF AFTER POSTING A PROFIT OF 59 MILLION GUILDERS A YEAR EARLIER WHILE SHOWING GUARDED OPTIMISM ABOUT AN IMPROVEMENT IN SOME OF ITS MARKETS THE COMPANY REAFFIRMED ITS EXPECTATION FOR A NET LOSS OF 150 MILLION GUILDERS THIS YEAR COMPARED WITH PROFIT OF 198 MILLION GUILDERS A YEAR AGO SALES FOR THE FIRST HALF OF 1993 WERE DOWN 8 TO 173 BILLION GUILDERS FROM 188 BILLION GUILDERS A YEAR AGO 9308110124 930811 FIRST INTERSTATE BANCORP CHARGE LOS ANGELES FIRST INTERSTATE BANCORP SAID IT WILL TAKE A 52 MILLION RESTRUCTURING CHARGE ON ITS FIRSTQUARTER EARNINGS BECAUSE OF ITS ACQUISITION OF CLOSELY HELD SAN DIEGO FINANCIAL CORP THE BANKING COMPANY SAID THE CHARGE MOSTLY TO COVER SEVERANCE COSTS WILL LOWER EARNINGS BY 60 TO 65 CENTS A SHARE FOR THE PERIOD ENDING MARCH 31 1994 THE COMPANY REPORTED FIRSTQUARTER NET INCOME OF 3042 MILLION OR 138 A SHARE FIRST INTERSTATE SAID MONDAY THAT IT AGREED TO ACQUIRE THE SAN DIEGO COMPANY FOR STOCK VALUED AT ABOUT 340 MILLION 9308110123 930811 INTERNATIONAL JAPANESE MACHINE ORDERS DECLINE TOKYO ORDERS TO JAPANESE MACHINERY MAKERS IN JUNE WERE DOWN 43 FROM A YEAR EARLIER TO 197 TRILLION YEN 1878 BILLION BEFORE ADJUSTMENT FOR SEASONAL FACTORS THE ECONOMIC PLANNING AGENCY SAID FOR THE JULYSEPTEMBER QUARTER THE AGENCY PREDICTED THAT MACHINERY ORDERS AFTER ADJUSTMENT FOR SEASONAL FACTORS WILL INCREASE 09 FROM THE PRECEDING QUARTER DOWN AN UNADJUSTED 98 FROM THE YEAR BEFORE INCLUDING THE LATEST REPORTING MONTH THE AGENCY SAID MACHINERY ORDERS DURING THE APRILJUNE QUARTER DECLINED 35 FROM THE CORRESPONDING PERIOD A YEAR EARLIER TO 5575 TRILLION YEN BEFORE ADJUSTMENT FOR SEASONAL FACTORS 9308110122 930811 MAXUS WELL IN COLOMBIA TESTED DALLAS MAXUS ENERGY CORP SAID ITS VOLCANERA1 WELL IN COLOMBIA TESTED 72 MILLION CUBIC FEET A DAY OF NATURAL GAS AND 240 BARRELS OF LIQUID HYDROCARBONS THE WELL WHICH IS ABOUT 100 MILES NORTHEAST OF BOGOTA WAS TESTED ON A 1/2INCH RESTRICTED OPENING TESTING WAS COMPLETED ON THE MIDDLE PORTION OF THE MIRADOR FORMATION MAXUS IS THE OPERATOR WITH 533 INTEREST OTHER PARTNERS INCLUDE DEILMANN ERDOL ERDGAS GMBH A GERMAN OIL AND NATURAL GAS COMPANY WITH 20 INAQUIMICIAS SA A COLOMBIAN COMPANY 167 AND BRITISH PETROLEUM EXPLORATION CO 10 9308110121 930811 LETTERS TO THE EDITOR DIRTY LOOKS AND TALK ARE SEXUAL HARASSMENT IN YOUR JUNE 7 EDITORIAL SEX AND SCHOOLCHILDREN I AGREE WITH YOUR PREMISE THAT MANY OF THE BEHAVIORS EXHIBITED BY TODAY'S SCHOOLCHILDREN REFLECT SOME OF THE PROBLEMS IN THE SOCIETY SURROUNDING THEM HOWEVER I TAKE EXCEPTION TO SEVERAL OF YOUR CONCLUSIONS I AM TROUBLED BY YOUR APPARENT ASSUMPTION THAT SEXUAL HARASSMENT SHOULD BE DEFINED VERY NARROWLY TO TOUCHING AND BY YOUR THINLY VEILED CRITICISM OF THE AMERICAN ASSOCIATION OF UNIVERSITY WOMEN STUDY THAT LOOKED AT A BROAD RANGE OF HARASSING ACTIVITIES INCLUDING SEXUAL COMMENTS JOKES GESTURES OR LOOKS IT IS ABSOLUTELY CLEAR THAT THE LAW DOES NOT LIMIT ITS DEFINITION OF PROHIBITED SEXUAL HARASSMENT TO PHYSICAL CONTACT IT INCLUDES VERBAL OR PHYSICAL CONDUCT OF A SEXUAL NATURE THAT RESULTS IN AMONG OTHER THINGS A HOSTILE OR OFFENSIVE ENVIRONMENT THE LAW RECOGNIZES THAT SEXUAL HARASSMENT IS A FORM OF SEX DISCRIMINATION WHICH IS CERTAINLY NOT CONFINED TO PHYSICAL CONTACT LEWD LOOKS AND LANGUAGE ARE DEMEANING AND DEGRADING AND HAVE LONG BEEN USED AS A MEANS OF STEREOTYPING WOMEN AND GIRLS AND KEEPING THEM FROM EXPERIENCING THE FULL RANGE OF OPPORTUNITIES AVAILABLE TO MEN AND BOYS IN OUR SOCIETY SECOND YOU SARCASTICALLY COMMENT ON SEX EDUCATION WHICH WE'RE ALL SUPPOSED TO AUTOMATICALLY RECOGNIZE AS GOOD THE FACT IS THAT IN ANY YEAR MORE THAN A MILLION US TEENAGERS BECOME PREGNANT THEY HAVE ONE OF THE HIGHEST PREGNANCY RATES IN THE WESTERN WORLD TWICE AS HIGH AS IN ENGLAND WALES FRANCE AND CANADA THREE TIMES AS HIGH AS SWEDEN AND SEVEN TIMES AS HIGH AS IN THE NETHERLANDS YOUR POSITION THAT THE SOLUTION LIES AT HOME IS OVERLY SIMPLISTIC SEXUAL HARASSMENT AND UNINTENDED TEEN PREGNANCY ARE MORE THAN FAMILY PROBLEMS THEY ARE SOCIETAL PROBLEMS AND ALL SEGMENTS OF SOCIETY MUST WORK TOGETHER TO ADDRESS THEM THE MESSAGE MUST BE REINFORCED AS WIDELY CONSISTENTLY AND FREQUENTLY AS POSSIBLE 9308110120 930811 HEARD ON THE STREET ATTENTION SHOPPERS SOME MANAGERS SEE KMART AS BARGAIN AFTER PAYLESS MOVE REMODELINGS BY JOHN R DORFMAN AND CHRISTINA DUFF STAFF REPORTERS OF THE WALL STREET JOURNAL DONALD TRUMP WAS MOCKED WHEN A PHOTOGRAPHER SNAPPED HIM SHOPPING AT KMART BUT INVESTORS NEEDN'T BE ASHAMED TO BE SEEN BUYING THE STOCK ANYMORE SO SAY SOME BARGAINHUNTING MONEY MANAGERS WHO LIKE KMART'S BLUELIGHTSPECIAL VALUATION THE TROY MICH RETAILER'S STOCK NOW SELLS FOR A MERE 11 TIMES THE PAST FOUR QUARTERS' PERSHARE EARNINGS BY CONTRAST THE AVERAGE PROFITABLE BIG BOARD STOCK GOES FOR 17 TIMES EARNINGS AND NO 1 RETAILER WALMART STORES FOR 27 KMART'S DIVIDEND YIELD IS 44 A LOT BETTER THAN YOU GET AT THE BANK THESE DAYS AND WITH THE STOCK'S CLOSE YESTERDAY AT 22 1/8 DOWN MORE THAN 20 FROM ITS 52WEEK HIGH EVEN DETRACTORS DON'T THINK THERE'S A LOT OF RISK IN THE SHARES LAST WEEK KMART SAID IT PLANS TO SELL ITS PAYLESS DRUG STORE CHAIN RUMORED ASKING PRICE 1 BILLION INTERESTED PARTIES CALL MERRILL LYNCH THE MOVE HAS MONEY MANAGERS RUNNING TO THEIR COMPUTERS TO REEVALUATE KMART'S PROSPECTS MANY OF THEM HOPE PAYLESS WILL BE THE FIRST OF SEVERAL ASSET SALES THAT WILL SPARK A RECOVERY IN EARNINGS WHICH HAVE BEEN ROUGHLY FLAT FOR FIVE YEARS KMART ALSO OWNS PACE WAREHOUSE CLUB STORES BUILDERS SQUARE HOME IMPROVEMENT STORES SPORTS AUTHORITY SPORTING GOODS SHOPS OFFICEMAX OFFICE SUPPLY STORES AND THE WALDENBOOKS AND BORDERS BOOK CHAINS TOGETHER THEY CONTRIBUTED 30 OF KMART'S 377 BILLION IN SALES LAST YEAR BUT LESS THAN 15 OF OPERATING PROFIT ASSET SALES COULD LOWER KMART'S DEBT RECENTLY 40 OF TOTAL CAPITAL AND HELP ACCELERATE THE COMPANY'S STORE REMODELING WHICH HAS BEEN GOING TOO SLOWLY FOR MOST INVESTORS' TASTES SO FAR KMART HAS REDONE ABOUT HALF OF ITS 2400 STORES THE SCHEDULE CALLS FOR THE REST TO BE REMODELED BY 1996 THE REMODELED STORES LOOK A LOT BETTER SAYS SUSAN HAGER ANALYST WITH PIONEER MUTUAL FUNDS A BIG KMART HOLDER BRIGHTER COLORS THE ADJACENCIES BETWEEN DEPARTMENTS SEEM TO FLOW BETTER A LOT MORE FASHION WHAT KMART MUST DO NOW IS GET SHOPPERS BACK IN THE STORE TO SEE THE CHANGES THEY'VE MADE THE NEW STORES HAVE WIDER AISLES BETTER LIGHTING AND MOREFASHIONABLE CLOTHING A PRIORITY OF CHAIRMAN JOSEPH E ANTONINI BUT SO FAR EVEN THE REVAMPED STORES AREN'T GENERATING THE PROFITS THAT WALL STREET HAD HOPED FOR MANY ANALYSTS DON'T BELIEVE IN A TURNAROUND YET OF 30 WITH OPINIONS ONLY 10 RATE KMART A BUY SAYS ZACKS INVESTMENT RESEARCH MARGO MCGLADE OF PAINEWEBBER IS NEUTRAL AND WON'T UPGRADE UNTIL THE CORE DISCOUNT STORES' PROFITS RISE SHE CALLS THE STOCK'S VALUATION PRETTY FAIR CONSIDERING THERE'S NO VISIBILITY OF EARNINGS GROWTH AT THIS POINT MICHAEL EXSTEIN OF KIDDER PEABODY ALSO NEUTRAL SAYS HE WON'T UPGRADE UNTIL I UNDERSTAND THE STRATEGY OF HOW KMART WILL OVERCOME THE SLOWDOWN AT ITS CORE DIVISION JOHN B FIELDS MANAGER OF DELAWARE DECATUR II FUND SAYS HE HAS A SMALL KMART HOLDING HE IS CONSIDERING BUYING MORE BUT ONLY AS A SHORTTERM TRADE IT LOOKS LIKE A CHEAP STOCK HE SAYS BUT YOU'RE GOING BACK TO THE BASIC BUSINESS WHICH HAS BEEN IN TROUBLE LET'S FACE IT THEY'RE UP AGAINST WALMART IN AN AWFUL LOT OF THEIR LOCATIONS BUT SOME ANALYSTS ARE EXCITED BY THE PROSPECT OF KMART'S RESTRUCTURING JEFFREY EDELMAN OF C J LAWRENCE FIGURES THAT BY STRIPPING AWAY THE MARKET VALUE OF KMART'S SPECIALTY UNITS AND ITS MINORITY INTEREST IN AUSTRALIA'S COLES MYER LTD THE DISCOUNT STORES ARE BEING VALUED AT ABOUT 10 A SHARE A MERE FIVE TIMES THE DISCOUNT STORES' ANNUAL EARNINGS RATE OF 2 A SHARE A FAIR STOCK PRICE HE SAYS WOULD BE 31 OR ABOUT 14 TIMES HIS 1994 PERSHARE EARNINGS PROJECTION OF 225 L WAYNE HOOD OF PRUDENTIAL SECURITIES SAYS THE STOCK'S LOW PRICE REFLECTS THE COMPANY'S PROJECTION THAT FISCAL SECONDQUARTER EARNINGS WILL FALL BELOW THE YEAREARLIER LEVEL 168 MILLION OR 37 CENTS A SHARE AND THAT FULLYEAR RESULTS LIKELY WON'T REACH LAST YEAR'S 941 MILLION OR 206 A SHARE ANY POSITIVE EARNINGS SURPRISE IN THE SECOND HALF WILL HELP BOOST THE STOCK PRICE TO THE HIGH 20S BY YEAR END MR HOOD SAYS THE FASHION ELEMENT OF KMART IS STILL STRONG DESPITE TOUGH COMPETITION CONCLUDES WALTER LOEB AN INDEPENDENT RETAIL ANALYST HE EXPECTS KMART'S UNDERVALUED STOCK TO INCH UP TO 24 BY YEAR END AND TO 30 BY THE END OF 1994 HEARD YEAR ENDED JAN 27 1993 FIRST QUARTER APRIL 28 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9308110119 930811 ECONOMY PRODUCTIVITY OF WORKERS FELL IN 2ND QUARTER DECREASE RAISES UNCERTAINTY ABOUT WHETHER GAINS IN 1992 MARKED TREND BY ELIOT MORGAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PRODUCTIVITY OF US WORKERS DECREASED IN THE SECOND QUARTER MARKING THE SECOND CONSECUTIVE THREEMONTH DECLINE AND RAISING DOUBTS ABOUT WHETHER GAINS MADE LAST YEAR SIGNALED A LONGTERM TREND NONFARM BUSINESS PRODUCTIVITY THE OUTPUT OF WORKERS FOR EACH HOUR ON THE JOB FELL AT A 25 ANNUAL RATE IN THE SECOND QUARTER ACCORDING TO THE LABOR DEPARTMENT THAT FOLLOWED A FIRSTQUARTER DROP OF 16 THE POOR PRODUCTIVITY PERFORMANCE IN THIS YEAR'S FIRST HALF FOLLOWED A 26 JUMP FOR 1992 THE LARGEST GAIN IN 20 YEARS INCREASED PRODUCTIVITY IS ESSENTIAL FOR RAISING THE STANDARD OF LIVING AND KEEPING INFLATION LOW ECONOMISTS SAY PRODUCTIVITY NORMALLY RISES DURING THE EARLY STAGES OF AN ECONOMIC RECOVERY THAT'S BECAUSE BUSINESSES TRY TO MEET RISING DEMAND WITHOUT HIRING ADDITIONAL WORKERS GAINS IN PRODUCTIVITY THEN SLOW AS A RECOVERY PROGRESSES AND HIRING PICKS UP BUT MANY ANALYSTS BELIEVED THAT THE PRODUCTIVITY GAIN LAST YEAR SIGNALED MORE THAN JUST A CYCLICAL JUMP ECONOMISTS SAID COMPANIES WERE MOVING TO IMPROVE LONGTERM EFFICIENCY TO BECOME MORE COMPETITIVE WITH FOREIGN RIVALS THE LATEST PRODUCTIVITY REPORT DIDN'T CHANGE ANALYSTS' VIEW THAT PRODUCTIVITY IS ON A LONGTERM UPWARD TREND BUT IT DID MAKE THEM CAUTIOUS THIS IS A WARNING THAT WE CAN'T TAKE PRODUCTIVITY GROWTH FOR GRANTED WE HAVE TO STAY FOCUSED ON OPERATING EFFICIENCY SAID STEPHEN ROACH SENIOR ECONOMIST AT MORGAN STANLEY IN NEW YORK DONALD RATAJCZAK HEAD OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY SAID PRODUCTIVITY DECLINED IN THE SECOND QUARTER PARTLY BECAUSE MANY EMPLOYERS EXPECTING STRONG CONSUMER DEMAND HIRED MORE WORKERS THAN NEEDED GIVEN THE SLOW ECONOMIC GROWTH THAT OCCURRED MR RATAJCZAK ESTIMATES THAT PRODUCTIVITY IS GROWING AT A 15 RATE IN THE SECOND HALF THE SECONDQUARTER REPORT DOES NOT MEAN WE ARE BACK IN THE OLD DAYS HE SAID REFERRING TO THE PALTRY 05 GROWTH IN PRODUCTIVITY DURING 1991 AND THE WEAK GROWTH THROUGHOUT THE 1980S SECONDQUARTER PRODUCTIVITY GAINS IN THE MANUFACTURING SECTOR WERE SIGNIFICANT IN THE DURABLE GOODS SECTOR PRODUCTIVITY INCREASED AT A 71 RATE WHILE IT ROSE AT A 21 PACE IN THE NONDURABLE GOODS SECTOR PRODUCTIVITY GAINS HAVE BECOME SO CRUCIAL TO EMPLOYERS THAT SOME ANALYSTS SUGGESTED PAYROLLS WILL BE CUT AND REMAINING WORKERS GIVEN MORE TASKS TO HELP BOOST EFFICIENCY IF THERE IS NO BOUNCE BACK WE WILL SEE LAYOFFS SAID JEFF THREDGOLD CHIEF ECONOMIST FOR KEYCORP ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9308110118 930811 WHO'S NEWS INTEGRATED SYSTEMS INC INTEGRATED SYSTEMS INC SANTA CLARA CALIF DAVID P ST CHARLES 43 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER AT THIS SOFTWARE MAKER HE WAS PRESIDENT OF WIND RIVER SYSTEMS IN ALAMEDA CALIF HE SUCCEEDS NAREN K GUPTA WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9308110117 930811 MARKETING BRIEF NOTED WHO'S NEWS MICHAEL S HOPE AND A ROBERT PISANO WERE NAMED EXECUTIVE VICE PRESIDENTS AT METROGOLDWYNMAYER INC WHICH IS OWNED BY CREDIT LYONNAIS SA THE FORMER PARAMOUNT PICTURES EXECUTIVES ARE REUNITED WITH FRANK MANCUSO THE EXPARAMOUNT CHIEF WHO LAST MONTH WAS NAMED CHAIRMAN OF MGM AT MGM MR HOPE WILL HANDLE FINANCIAL AND ADMINISTRATIVE DUTIES AND MR PISANO WILL BE RESPONSIBLE FOR BUSINESS AND LEGAL AFFAIRS 9308110116 930811 CORRECTIONS & AMPLIFICATIONS WESTCORP IS THE PARENT OF WESTERN FINANCIAL SAVINGS BANK IN AN ARTICLE YESTERDAY ON THE UNIT'S PLAN TO REDEEM DEBENTURES THE SUBSIDIARY'S NAME WAS MISSTATED AS WESTERN FEDERAL SAVINGS BANK 9308110115 930811 TUESDAY'S MARKETS BOND PRICES RISE AGAIN STOCKS SLIP TREASURY YIELD HITS 644 REPRESENTING ANOTHER 16YEAR LOW BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL LONGTERM BOND PRICES ROSE PUSHING INTEREST RATES TO ANOTHER 16YEAR LOW BUT MAJOR STOCK INDEXES RETREATED FROM MONDAY'S RECORD THE DOLLAR RALLIED AGAINST THE MARK BUT EASED AGAINST THE YEN THE DOW JONES INDUSTRIALS SLIPPED 335 TO 357273 STANDARD & POOR'S 500STOCK INDEX FELL 127 TO 44945 AND THE NASDAQ COMPOSITE INDEX LOST 141 TO 71708 BOND TRADING WAS CAUTIOUS AS THE TREASURY BEGAN THE FIRST LEG OF ITS THREEDAY QUARTERLY REFUNDING ALTHOUGH THE TREASURY'S BENCHMARK 30YEAR ISSUE CLIMBED MODESTLY PRICES OF SHORTERMATURITY BONDS AND NOTES EDGED LOWER ANALYSTS SAID THE TREASURY'S SALE OF 1667 BILLION OF NEW THREEYEAR NOTES WENT ABOUT AS EXPECTED THE AVERAGE YIELD ON THE NOTES WAS 449 THOUGH THE MAJOR STOCK MARKET INDEXES WEAKENED WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO POINTED OUT THAT MORE STOCKS ROSE THAN FELL ON THE BIG BOARD SUGGESTING SOME UNDERLYING STRENGTH THAT MAY PUSH PRICES HIGHER IN THE NEAR TERM THE DOLLAR SURGED AGAINST EUROPEAN CURRENCIES RISING 17 AGAINST THE POUND AND 11 AGAINST THE MARK THE POUND TUMBLED AFTER THE BANK OF ENGLAND SAID BRITISH INFLATION WILL BE LOWER THAN EXPECTED LEADING SOME TO BELIEVE THE CENTRAL BANK MIGHT CUT INTEREST RATES SOON THE SELLING OF POUNDS CONTINUED AFTER EUROPEAN CURRENCY MARKETS CLOSED AS CURRENCY FUTURES TRADERS IN CHICAGO WERE HUGE SELLERS OF STERLING SAID PAUL FARRELL A VICE PRESIDENT AT CHASE MANHATTAN BANK HE SAID THE DOLLAR KEPT CLIMBING AGAINST THE MARK AFTER IT ROSE ABOVE KEY POINTS ON CHARTS THAT MANY TRADERS USE TO PREDICT CURRENCY MOVEMENTS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 037 TO 10929 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2555 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1002 ISSUES ROSE AND 949 FELL BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED MORE THAN 1/4 POINT OR OVER 250 FOR EACH 1000 FACE AMOUNT TO YIELD 644 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 17170 MARKS AND 10470 YEN COMPARED WITH 16975 MARKS AND 10489 YEN MONDAY 9308110113 930811 SURELY AN EMPLOYER SOMEWHERE CAN USE THIS KIND OF HONESTY BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL YOU WON'T FIND IT LISTED IN WANT ADS OR CAREERADVICE BOOKS BUT ACCORDING TO A FEDERAL APPEALS COURT A PERSON CAN MAKE A DECENT LIVING STEALING CHAIN SAWS THE APPEALS COURT IN CHICAGO RULED LAST WEEK THAT A PEORIA ILL MAN WASN'T ELIGIBLE FOR GOVERNMENT DISABILITY INCOME BECAUSE HE HAD BEEN GAINFULLY EMPLOYED AS A THIEF THE MAN HAROLD DOTSON CLAIMED TO BE DISABLED BY ASTHMA ALLERGIES AND DRUG ABUSE BUT HE ADMITTED AT A HEARING THAT HE OFTEN PILFERED CHAIN SAWS AND THEN SOLD THEM TO SMALL BUSINESSES THAT EARNED MR DOTSON OVER 500 A MONTH TOO MUCH THE COURT SAID TO ALLOW HIM ON THE DOLE THOUGH MR DOTSON'S AVOCATION IS ILLEGAL IT IS PHYSICALLY AND MENTALLY DEMANDING JUST LIKE AN ORDINARY JOB JUDGE ALBERT ENGEL SAID IN THE OPINION LIFTING AND CARRYING THE CHAIN SAWS IS SIGNIFICANT PHYSICAL ACTIVITY HE SAID QUOTING AN ADMINISTRATIVE LAW JUDGE WHO PREVIOUSLY RULED IN THE CASE THE PLANNING AND EXECUTION OF THE LARCENY ENTAILS SIGNIFICANT MENTAL ACTIVITY BUT THE COURT MADE CLEAR THAT NOT JUST ANY ILLICIT WORK CONSTITUTES SIGNIFICANT EMPLOYMENT ACTING AS A LOOKOUT AT A DRUG HOUSE MIGHT CONSTITUTE A GAINFUL YET INSUBSTANTIAL ACTIVITY JUDGE ENGEL WROTE WHEREAS SOMEONE WHO CHRONICALLY ENGAGES IN ACTS OF VANDALISM MAY BE SUBSTANTIALLY BUT NOT GAINFULLY EMPLOYED THE RULING MAY BE A DOUBLE WHAMMY FOR MR DOTSON NOT ONLY WILL HE GET NO BENEFITS BUT HE MAY HAVE PUT THE POLICE ON HIS TRAIL LAWENFORCEMENT OFFICIALS HAVEN'T YET COME AFTER HIM BUT THERE'S OBVIOUSLY A RISK SAYS THOMAS HENRY HIS LAWYER THE TRANSCRIPTS ARE PUBLIC NOW LYNN SHILLER A SPOKESWOMAN FOR THE SOCIAL SECURITY ADMINISTRATION SAYS SUCH CASES AS MR DOTSON'S ARE RARE BECAUSE APPLICANTS FOR BENEFITS GENERALLY DON'T DISCLOSE CRIMINAL ACTS CERTAINLY IF INCOME FROM CRIMINAL ACTIVITY COMES TO OUR ATTENTION THEN WE WOULD PURSUE IT SHE SAYS BUT WE WOULDN'T HAVE ANY WAY OF KNOWING ABOUT IT IN MOST CASES LEGAL SPECIALISTS SAY THE DECISION IS CONSISTENT WITH THE GOVERNMENT'S ORDINARY STANCE ON INCOME FROM ILLEGAL ACTIVITY SUCH AS THE INTERNAL REVENUE SERVICE'S POSITION THAT SUCH EARNINGS ARE TAXABLE I DON'T THINK IT'S WRONG TO SAY THAT THIS IS A SUBSTANTIAL GAINFUL ACTIVITY SAYS GREGORY MAGGS A LAW PROFESSOR AT GEORGE WASHINGTON UNIVERSITY BUT HE SAYS I THINK THEY OUGHT TO REPORT THIS GUY TO THE CHAINSAW DEALERS IN TOWN 9308110112 930811 RJR PREFERRED OFFER INCREASED NEW YORK RETAIL INVESTING INTEREST HAS PERMITTED UNDERWRITERS TO BOOST RJR NABISCO HOLDINGS CORP'S PROPOSED CUMULATIVE PREFERRED STOCK ISSUE TO 1 BILLION RJR NABISCO ORIGINALLY PLANNED A 500 MILLION OFFERING IN AN UNDERWRITING LED BY MERRILL LYNCH & CO THE OFFERING IS EXPECTED TO BE PRICED THIS WEEK WITH A DIVIDEND YIELD OF 9 1/4 MARKET SOURCES SAID HIGHER THAN RECENT PREFERRED OFFERINGS UNDERWRITERS ARE LOOKING TO SELL 40 MILLION SHARES OF THE RJR PREFERRED AT 25 EACH THE ISSUE IS RATED DOUBLE BPLUS BY STANDARD & POOR'S CORP 9308110111 930811 REVIEW & OUTLOOK EDITORIAL BATTLE LINES EMERGING THE CLINTON ECONOMY OVER THE NEXT YEAR OBVIOUSLY WILL MAKE THE DIFFERENCE BUT LAST WEEK'S DECISION IN A CONGRESSIONAL FISHBOWL IS ALREADY OPENING UP SOME INTERESTING POSSIBILITIES SEVERAL DEMOCRATS IN BOTH HOUSES WERE VULNERABLE IN ANY CASE GIVEN THEIR NARROW VICTORY MARGINS LAST TIME AND THE USUAL OFFYEAR SHIFT OF MOMENTUM BUT EVEN SOME SAFE INCUMBENTS MAY FIND THE CALCULUS HAS CHANGED BECAUSE THEY TOED THE CLINTON LINE OUR FAVORITE LONGSHOT IS THE CALIFORNIA SENATORIAL RACE WHERE DIANNE FEINSTEIN WILL SEEK TO MAINTAIN THE LANDSLIDE MARGIN BY WHICH SHE BURIED AN APPOINTED REPUBLICAN IN 1992 THE FORMER SAN FRANCISCO MAYOR IS PROVING ONCE MORE TO BE A WILY POLITICIAN TAKING NEW DEMOCRAT STANCES AND PUSHING ALL THE PORK BUTTONS BUT STILL THERE IS THE MATTER OF HER VOTE HER DECIDING VOTE TO SOCK CALIFORNIANS WITH ONE OF THE HEAVIEST BURDENS OF ANY STATE VIA THE CLINTON TAXES CALIFORNIA CONTINUES TO REEL IN RECESSION AND GOVERNOR PETE WILSON STRIVING TO SAVE HIS OWN POLITICAL SKIN HAS MOUNTED A FULLON DRIVE TO PIN THE STATE'S LAGGING FORTUNES ON THE LAGGING PRESIDENT ALL OF THAT ALONE WOULDN'T MAKE CALIFORNIA SO SPECIAL BUT ONE OF THE REPUBLICANS SEEKING TO UNSEAT SENATOR FEINSTEIN MIGHT JUST BE RONALD REAGAN'S REVENGE HE'S CHRIS COX A THREETERM CONGRESSMAN FROM ORANGE COUNTY WIDELY RECOGNIZED AS ONE OF THE BRIGHT BULBS OF THE GOP RIGHT AT AGE 40 HE'S ALREADY HAD ENOUGH OF HOUSE RULES MR COX WAS ONE OF THE GIPPER'S WHITE HOUSE LAWYERS AND IS A BONAFIDE REAGANITE HIS CONGRESSIONAL VOTING RECORD ISN'T AS PURE AS SOME AGAINST HIS BETTER AND WRITTEN JUDGMENT HE BACKED THE AMERICANS WITH DISABILITIES ACT AS WELL AS THE ENVIRONMENTAL SOCIALISM OF THE CLEAN AIR ACT BUT THEN HE'S ALWAYS HAD AN EYE FOR ELECTABILITY MORE SUBSTANTIVELY MR COX HAS BEEN A DETERMINED FIGHTER FOR REAL AND FEASIBLE SPENDING CONTROLS SOMETHING THAT COULD PLAY WELL IN 1994 HE ISN'T YET WELL RECOGNIZED AROUND THE HUGE STATE BUT IS SKILLED AT RAISING THE FUNDS THAT CAN CHANGE THAT IN THAT ARENA HOWEVER HE WILL BE UP AGAINST GOLIATH BEFORE HE EVEN CAN GET TO SENATOR FEINSTEIN WILDCARD REPUBLICAN MICHAEL HUFFINGTON WHO SPENT 5 MILLION OF HIS MOSTLY FAMILY WEALTH GETTING ELECTED TO CONGRESS LAST TIME FROM SANTA BARBARA ALSO FIGURES IT'S TIME TO MOVE UP TO THE SENATE IF POLITICAL PHILOSOPHY DOESN'T GET TOO MUDDIED IN A VICIOUS PRIMARY TILT THE NATION'S MOST DEPRESSED MAJOR STATE COULD RENDER NEXT NOVEMBER THE MOST STRIKING VERDICT ON THE CLINTON ECONOMY 9308110110 930811 WHO'S NEWS DAMES & MOORE INC DAMES & MOORE INC LOS ANGELES HENRY KLEHN JR 57 YEARS OLD EXECUTIVE VICE PRESIDENTCORPORATE DEVELOPMENT AND KEVIN J FREEMAN 43 SENIOR VICE PRESIDENT AND MANAGER WESTERN NORTH AMERICA DIVISION WERE ELECTED DIRECTORS OF THIS ENVIRONMENTAL CONSULTING AND ENGINEERING SERVICES CONCERN THEY FILL VACANCIES CREATED BY THE RETIREMENT OF WILLIAM W MOORE 81 AND RESIGNATIONS FROM THE BOARD OF GLENN D MARTIN 43 AND COMPANY PRESIDENT AND CHIEF OPERATING OFFICER ARTHUR C DARROW 50 A SPOKESMAN SAID IT IS EXPECTED THAT MR DARROW WILL REJOIN THE BOARD WHEN HE BECOMES CHIEF EXECUTIVE OFFICER AT THE END OF 1994 9308110109 930811 WHO'S NEWS US LONG DISTANCE CORP US LONG DISTANCE CORP SAN ANTONIO MARK D BUCKNER 38 YEARS OLD RESIGNED AS CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT OF THIS TELECOMMUNICATIONS CONCERN IN A COMPANY STATEMENT MR BUCKNER SAID HE FELT HIS PERSONAL OBJECTIVES WILL BE BEST SERVED BY MAKING THIS TRANSITION HE COULDN'T BE REACHED TO COMMENT FURTHER A SPOKESWOMAN SAID THE COMPANY HADN'T ASKED MR BUCKNER TO RESIGN BUT THAT HE HAD DEPARTED TO PURSUE OTHER INTERESTS THE COMPANY EXPECTS TO NAME A SUCCESSOR WITHIN 30 TO 60 DAYS 9308110108 930811 POOR ECONOMICS AND TRASH SHORTAGE FORCE INCINERATION INDUSTRY CHANGES BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL THE TRASHINCINERATION INDUSTRY IS HEADING INTO WHAT PROMISES TO BE A SEVERE SHAKEOUT AS WEAKER COMPETITORS GIVE UP ON A BUSINESS IN WHICH GROWTH HAS STALLED AND THE TWO DOMINANT PLAYERS PURSUE RADICALLY DIFFERENT STRATEGIES OGDEN CORP NO 1 IN THE BUSINESS WITH A 26 MARKET SHARE THROUGH ITS OGDEN PROJECTS INC UNIT RELIES HEAVILY ON CONTRACTS WITH MUNICIPALITIES TO BRING TRASH TO ITS 24 SOCALLED WASTETOENERGY PLANTS IT HAS NO HAULING BUSINESS TO FEED THE INCINERATORS WMX TECHNOLOGIES INC NO 2 WITH A 20 SHARE THROUGH ITS WHEELABRATOR TECHNOLOGIES INC UNIT USES ITS DOMINANT US TRASHHAULING BUSINESS TO HELP FEED ITS 14 PLANTS AND IS FAR LESS RELIANT ON GUARANTEES FROM CITIES THAT THEY WILL DELIVER TRASH THAT COULD PROVE A BIG EDGE IN THE MORE COMPETITIVE TIMES AHEAD PROFITS REMAIN STRONG AT BOTH COMPANIES THOUGH FALLING DISPOSAL FEES AND A SLOWDOWN IN NEW PLANT CONSTRUCTION COULD CHANGE THAT EARLIER THIS YEAR SWEDISH INDUSTRIAL GIANT ASEA BROWN BOVERI AB SOLD ITS US TRASH BURNERS FOR 47 MILLION TO OGDEN PROJECTS OCCIDENTAL PETROLEUM CORP SOLD ITS BIG NIAGARA FALLS NY INCINERATOR TO AMERICAN REFFUEL CO A JOINT VENTURE OF NO 2 HAULER BROWNINGFERRIS INDUSTRIES INC AND AIR PRODUCTS & CHEMICALS INC AND WESTINGHOUSE ELECTRIC CORP CONFIRMS THAT IT OFFERED ITS INCINERATION PLANTS TO WMX TECHNOLOGIES BUT THAT NO AGREEMENT WAS REACHED WESTINGHOUSE OWNS A HUGE 300 MILLION PLANT IN DELAWARE COUNTY PA PART OF THE GLUTTED PHILADELPHIA MARKET THE FACILITY IS LOSING MONEY THE COMPANY WON'T SAY IF THE BUSINESS OVERALL IS PROFITABLE FOSTER WHEELER CORP AND MONTENAY SA A BIG FRENCH SERVICES CONCERN BOTH SAY THEY ARE IN THE BUSINESS TO STAY THOUGH DISAPPOINTED BY THE SLOWDOWN COMPANIES PILED INTO THE BUSINESS DURING THE 1980S THINKINGLIKE MUNICIPALITIESTHAT DUMP CAPACITY WAS SHRINKING AND ACCORDING TO A REPORT PREPARED BY ANALYSTS AT KIDDER PEABODY & CO THEY WERE ATTRACTED BY OTHER REASONS PRE1986 TAX LAWS GAVE BIG TAX CREDITS FOR CAPITAL INVESTMENTS CITIES OFFERED CHEAP TAXFREE FINANCING ENERGY COSTS SEEMED SURE TO RISE MAKING ALTERNATIVE FORMS OF ELECTRICITY GENERATION VALUABLE AND SOME BIG ENGINEERING AND CONSTRUCTION COMPANIES WERE LOOKING FOR NEW THINGS TO BUILD DOZENS OF COMMUNITIES AWARDED CONTRACTS TO BUILD INCINERATORS IN THE MID1980S BUT THEN THE BACKPEDALING BEGAN ACCORDING TO KIDDER CANCELLATIONS OF ALREADYAWARDED PROJECTS HAVE EXCEEDED NEW PROJECTS ANNUALLY SINCE 1987 EVEN WITH THE DISPOSAL GLUT IN MANY MARKETS THE INDUSTRY CONTINUES TO USE THE MYTHICAL GARBAGE CRISIS AS A MARKETING TOOL A WMX TECHNOLOGIES PROMOTIONAL BROCHURE WARNS THIS NATION IS QUICKLY RUNNING OUT OF PLACES TO DISPOSE OF TRASH OGDEN PROJECTS' ANNUAL REPORT SEES AVAILABLE LANDFILL SPACE VANISHING AND THE INCINERATIONINDUSTRY GROUP INTEGRATED WASTE SERVICES ASSOCIATION STILL TALKS OF SOLVING THE GARBAGE CRISIS THOUGH ITS PRESIDENT B KENT BURTON SAYS IN HIS SPEECHES THAT HE HAS DOWNGRADED THE CRISIS TO A PROBLEM BECAUSE OF THE DIFFERING STRATEGIES OF ITS TWO BIGGEST MEMBERS OGDEN AND WHEELABRATOR THE ASSOCIATION HASN'T YET TAKEN A POSITION ON FLOW CONTROL THE MOST IMPORTANT ISSUE FACING THE INDUSTRY OGDEN IS STRONGLY IN FAVOR OF FLOW CONTROL WHICH ALLOWS A MUNICIPALITY TO DIRECT ALL ITS TRASH TO A DESIGNATED DISPOSAL SITE WHILE WMX TECHNOLOGIES AND ITS WHEELABRATOR UNIT DON'T HAVE A POSITION WITHOUT FLOW CONTROL OGDEN WOULD BE VULNERABLE TO HAULERS INCLUDING THOSE OWNED BY WMX AND BROWNINGFERRIS THAT WANT TO TAKE TRASH TO THEIR OWN DUMPS RATHER THAN TO OGDEN'S INCINERATORS OGDEN IS INCREASINGLY CRITICAL OF DUMPS ON ENVIRONMENTAL GROUNDS RAW REFUSE CREATES A TOXIC SOUP IN DUMPS IT WILL ULTIMATELY COME UP SAYS SCOTT G MACKIN PRESIDENT AND CHIEF OPERATING OFFICER OF OGDEN PROJECTS THE ENVIRONMENTAL PROTECTION AGENCY CONSIDERS A WELLBUILT DUMP SAFE AND IS SLOWLY MOVING TO CLOSE UNSAFE ONES DUMPS HAVE BEEN WMX TECHNOLOGIES MOST PROFITABLE BUSINESS MR MACKIN SEES NO NEED FOR OGDEN TO LINK UP WITH A HAULER NATIONALLY HE EXPECTS THAT AN ECONOMIC RECOVERY AN INCREASE IN OIL PRICES AND THE PUBLIC'S HATRED OF DUMPS WILL ALL COME TOGETHER TO SPUR GROWTH AGAIN FOR THE INCINERATION INDUSTRY 9308110106 930811 TREASURY PLANS SALE OF 244 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 175 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 2422 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794E59 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H98 NONCOMPETITIVE BIDS FOR THE BILLS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE BIDS MUST BE RECEIVED BY 1 PM EDT THAT DAY 9308110105 930811 VERDICT CLEARS AMR ON ILLEGAL PRICING CHARGES CARRIER DIDN'T TRY TO FORCE NORTHWEST CONTINENTAL TO FAIL US JURY SAYS BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL GALVESTON TEXAS A FEDERAL JURY FOUND THAT AMERICAN AIRLINES DIDN'T SLASH FARES LAST SPRING TO PUT TWO WEAKER CARRIERS OUT OF BUSINESS SIGNALING THAT COMPANIES CAN CONTINUE TO PRICE THEIR PRODUCTS AGGRESSIVELY WITHOUT RUNNING AFOUL OF PREDATORY PRICING LAWS NORTHWEST AIRLINES AND CONTINENTAL AIRLINES HAD CLAIMED THE AMR CORP UNIT TRIED TO FORCE THEM INTO INCURRING HEAVY LOSSES WHEN IT INTRODUCED A FARE STRUCTURE THAT CUT COACH FARES AS MUCH AS 50 BUT THE JURY OF NINE MEN AND THREE WOMEN DELIBERATED FOR LESS THAN THREE HOURS BEFORE FINDING THAT THE PLAINTIFFS' CASE DIDN'T MEET THE FIRST CRITICAL BASIS ON WHICH THEY WERE TO DECIDE THE CASE THE GROUP ANSWERED NO ON THE FIRST QUESTION ON THE JURY FORM WHICH ASKED WHETHER THE NATION'S LARGEST AIRLINE TRIED TO MONOPOLIZE CERTAIN AIR MARKETS THROUGH ITS PRICING ACTIONS AND POLICIES LAST YEAR THE CASE WAS ONE OF THE LARGEST AND CLOSELY WATCHED ANTITRUST TRIALS THIS YEAR IF AMERICAN HAD LOST IT WOULD HAVE FACED JUDGMENTS TOTALING 3 BILLION A JUBILANT ROBERT L CRANDALL THE AMR CHAIRMAN WHO CHAMPIONED THE FARE CUTS AND WHOSE MANAGEMENT STYLE WAS THE FOCUS OF MUCH CRITICISM IN COURT SAID AT A NEWS CONFERENCE THAT HE WAS ENORMOUSLY PLEASED BY THE OUTCOME THEN HE TOOK THE OPPORTUNITY TO TAKE SEVERAL SHOTS AT CONTINENTAL AND NORTHWEST WE ARE OUTRAGED BY THE AMOUNT OF TIME AND MONEY THAT WE HAVE HAD TO DEVOTE TO DEFENDING THESE BASELESS CHARGES HE SAID THE BREVITY OF THE JURY'S DELIBERATION UNDERSCORES HOW BASELESS THOSE ASSERTIONS REALLY WERE THERE WAS NO INTENT TO DAMAGE ANYONE CONTINENTAL AND NORTHWEST HAD ASKED FOR DAMAGES OF AS MUCH AS 1 BILLION WHICH WOULD AUTOMATICALLY BE TRIPLED IN AN ANTITRUST CASE MR CRANDALL SAID AMERICAN NEVER MADE ANY FINANCIAL CONTINGENCIES TO PREPARE FOR THE WORST WE DIDN'T DO ANYTHING WRONG WE NEVER ASSUMED WE WOULD LOSE THUS WE NEVER DID ANY CONTINGENCY FINANCIAL PLANNING FOR HOW WE WOULD PAY SOME WILDLY INFLATED DAMAGE ASSESSMENT FOR THEIR PART PLAINTIFFS NORTHWEST AND CONTINENTAL EXPRESSED DISAPPOINTMENT WITH THE VERDICT THE EVIDENCE SHOWED THAT AMERICAN SET PRICES BELOW COST IN HOPES OF ERADICATING COMPETITORS ALL WITH THE AIM OF LATER RAISING PRICES FOR HIGHER PROFITS A SPOKESMAN FOR CONTINENTAL A UNIT OF CONTINENTAL AIRLINES INC IN HOUSTON SAID AS FOR NORTHWEST THE AIRLINE'S GENERAL COUNSEL RICHARD B HIRST SAID TODAY'S VERDICT IN NO WAY CHANGES OUR CONVICTION THAT AMERICAN AIRLINES' PRINCIPAL PURPOSE IN ADOPTING THE VALUE PRICING PLAN WAS TO ELIMINATE COMPETITION WE KNEW AT THE OUTSET HOWEVER THAT GIVEN THE EXTREMELY RETRICTIVE LEGAL STANDARDS APPLICABLE TO PREDATORY PRICING THIS WAS A VERY DIFFICULT CASE HE ADDED THAT UNDER SIMILAR CIRCUMSTANCES NORTHWEST A UNIT OF MINNEAPOLISBASED WINGS HOLDINGS INC WOULD SUE AGAIN MOST LIKELY THOUGH ANOTHER CASE WOULD HAVE A SIMILAR DENOUEMENT PREDATORY PRICING CASES ARE AMONG THE MOST DIFFICULT SUITS FOR PLAINTIFFS TO WIN ANTITRUST LAWYERS SAY INDEED ALTHOUGH PLAINTIFFS HAVE SOMETIMES WON JURY TRIALS FEW OF THE VERDICTS HAVE BEEN UPHELD BY APPEALS COURTS A DECISION BY THE US SUPREME COURT IN LATE JUNE IN A CIGARETTE PRICING CASE MADE PREDATORY PRICING EVEN MORE DIFFICULT TO PROVE TO WIN SUCH A CASE PLAINTIFFS MUST PROVE TWO KEY FACTS THE ACCUSED COMPANY MUST HAVE PRICED ITS PRODUCT AT A LOSS AND NOT SIMPLY A TEMPORARY OR SPECIAL PROMOTIONAL OFFER SECOND THE COMPANY MUST HAVE HAD A REASONABLE CHANCE OF ULTIMATELY MAKING MORE MONEY BY PUSHING COMPETITORS OUT OF THE MARKET THAN IF IT HADN'T TAKEN THE INITIAL LOSS THE COMBINATION OF THOSE TWO ELEMENTS IS A VERY HIGH STANDARD SAID GARRET RASMUSSEN AN ANTITRUST SPECIALIST AT THE WASHINGTON LAW FIRM PATTON BOGGS & BLOW APPARENTLY THE JURY DECIDED THAT THE PLAINTIFFS WEREN'T VICTIMIZED HE ADDED IT WAS JUST ROUGH COMPETITION CONTINENTAL SAID IT MAY APPEAL TODAY'S VERDICT BUT IT'S MORE LIKELY THAT THE AIRLINE MAY OPT INSTEAD TO SAVE ITS MONEY FROM WHAT WOULD LIKELY BE A COSTLY APPEAL WHILE THE PLAINTIFFS HAVEN'T GIVEN AN EXACT FIGURE OF HOW MUCH THEY SPENT TO PURSUE THEIR CLAIM THE TOTAL IS SAID TO BE SLIGHTLY LESS THAN HALF OF WHAT AMERICAN SPENT WHICH WAS AT LEAST 20 MILLION NORTHWEST DIDN'T INDICATE IN A STATEMENT WHETHER IT PLANNED TO APPEAL AND OFFICIALS DIDN'T RETURN PHONE CALLS THE NEWS OF AMERICAN'S VICTORY IN COURT PROVIDED A BOOST TO ITS STOCK AS WELL IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMR'S SHARES ROSE 1625 A SHARE OR 25 TO CLOSE AT 6625 IN HIS NEWS CONFERENCE MR CRANDALL SAID THAT THE VERDICT WOULDN'T CHANGE THE WAY AMERICAN PRICES ITS PRODUCT BECAUSE THE LAWSUIT HADN'T CHANGED ANYTHING IT'S HAD NO CHILLING EFFECT ON OUR WILLINGNESS TO CHANGE FARES THE EXECUTIVE SAID HOWEVER THIS SUMMER HAS SEEN FEWER FARE CUTS THAN LAST SUMMER AND THERE HAD BEEN VIRTUALLY NO MAJOR FARE INITIATIVES AFTER THE TRIAL'S JULY 12 START UNTIL LAST WEEK WHEN DELTA AIR LINES SLASHED TICKET PRICES FOR FALL DELTA ISN'T A PARTICIPANT IN THIS CASE DESPITE THE CONTROVERSY AMERICAN'S VALUE PLAN ENGENDERED MR CRANDALL AGAIN STOOD UP FOR THE FOURTIERED STRUCTURE AMERICAN PROPOSED THEN LATER ABANDONED IN THE FACE OF FURTHER FARE CUTS BY COMPETITORS LAST YEAR IN MY OPINION THE VALUE PLAN AS WE PROPOSED IT MADE GREAT SENSE DO I THINK AIRLINES WOULD BE BETTER OFF GENERALLY IF THEY FOUND THEIR WAY BACK TO SUCH A STRUCTURE YES HE SAID BUT WHEN ASKED WHETHER AMERICAN WOULD EVER TRY TO REINSTITUTE THE CONTROVERSIAL PRICING FORMULA THAT SET OFF THE PRICING FIREWORKS MR CRANDALL SNAPPED THAT'S PROPRIETARY 9308110104 930811 SALES OF SAVINGS BONDS DECLINED 333 IN JULY WASHINGTON THE TREASURY SOLD 755 MILLION OF SERIES EE SAVINGS BONDS IN JULY DOWN 333 FROM A YEAR EARLIER THE VALUE OF SAVINGS BONDS HELD BY AMERICANS AT THE END OF JULY REACHED 15636 BILLION UP 146 FROM 13639 BILLION A YEAR EARLIER SAVINGS BONDS HELD FIVE YEARS OR LONGER CURRENTLY EARN THE MARKETBASED RATE OF 478 YEARTOYEAR SALES OF SAVINGS BONDS HAVE FALLEN SINCE MARCH WHEN THE TREASURY LOWERED THE GUARANTEED MINIMUM RATE FOR SAVINGS BONDS TO 4 FROM 6 SAVINGS BONDS SALES WERE UNUSUALLY HIGH IN LATE1991 AND 1992 IN RESPONSE TO THE DECLINE IN MARKET YIELDS BELOW THE 6 GUARANTEED RATE FOR SAVINGS BONDS 9308110103 930811 TECHNOLOGY SEMICONDUCTOR INDEX ROSE SLIGHTLY IN JULY SAN JOSE CALIF THE SEMICONDUCTOR INDUSTRY HAD A SLIGHTLY BETTER MONTH IN JULY AS ROBUST BOOKINGS PUSHED ITS LEADING INDICATOR HIGHER THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID ITS BOOKTOBILL RATIO FOR JULY STOOD AT 112 UP FROM A REVISED 111 IN JUNE THE RATIO INDICATES THAT FOR EVERY 100 IN CHIPS SHIPPED THE INDUSTRY GOT 112 OF ORDERS THE FIGURE PEAKED AT 120 IN JANUARY A YEAR AGO IT WAS 108 NEW ORDERS BASED ON A THREEMONTH AVERAGE ROSE TO 227 BILLION IN JULY FROM 226 BILLION IN JUNE SHIPMENTS BASED ON A SIMILAR AVERAGE FELL TO 202 BILLION FROM 203 BILLION 9308110102 930811 DIVIDEND NEWS DR HORTON INC DR HORTON INC'S BOARD DECLARED A SPECIAL 5 STOCK DIVIDEND PAYABLE SEPT 30 TO SHARES OF RECORD AUG 31 CASH WILL BE PAID IN LIEU OF FRACTIONAL SHARES THE ARLINGTON TEXAS COMPANY SAID THE DIVIDEND IS THE FIRST THAT THE HOME BUILDER HAS PAID SINCE COMPLETING ITS INITIAL PUBLIC OFFERING IN JUNE 1992 DR HORTON ALSO SAID THAT ITS BOARD HAD VOTED TO CHANGE THE COMPANY'S FISCAL YEAR END TO SEPT 30 FROM DEC 31 EFFECTIVE THIS YEAR DONALD R HORTON CHAIRMAN AND PRESIDENT SAID THE CHANGE WOULD BETTER ALIGN THE COMPANY'S BUSINESS AND FINANCIAL CYCLES AND PERMIT IT TO COMMENCE ITS FISCAL YEAR WITH ITS TRADITIONALLY STRONGEST QUARTER 9308110101 930811 CREDIT RATINGS EASTMAN KODAK CO ROCHESTER NY MOODY'S INVESTORS SERVICE INC CITING KODAK'S PLANS TO NAME A NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHANGED ITS KODAK DEBT RATING TO DIRECTION UNCERTAIN FROM POSSIBLE UPGRADE ABOUT 7 BILLION OF SHORT AND LONGTERM DEBT IS UNDER REVIEW THE RATING AGENCY NOTED THAT THE NEW CHIEF IS EXPECTED TO MAKE BIG STRATEGY CHANGES AT THE PHOTOGRAPHY CHEMICALS AND HEALTHCARE CONCERN WE ARE AWAITING INPUT FROM THE NEW CEO BEFORE WE DETERMINE THE NEW DIRECTION OF THE RATING MOODY'S SAID MOODY'S HAD PLACED KODAK'S DEBT UNDER REVIEW FOR POSSIBLE UPGRADE IN JUNE WHEN KODAK SAID IT WOULD PAY DOWN ABOUT 2 BILLION IN DEBT AS PART OF ITS PLANNED SPINOFF OF EASTMAN CHEMICAL INC RYLAND GROUP COLUMBIA MD MOODY'S INVESTORS SERVICE INC DOWNGRADED THE DEBT RATINGS OF THIS HOMEBUILDING AND MORTGAGE FINANCING COMPANY SAYING IT EXPECTS DEBT COVERAGE MEASUREMENTS TO REMAIN BELOW INVESTMENT GRADE FOR THE INTERMEDIATE TERM ABOUT 150 MILLION OF DEBT IS AFFECTED MOODY'S LOWERED SENIOR DEBT TO BA1 FROM BAA3 SAYING IT EXPECTS RYLAND'S HOMEBUILDING OPERATIONS TO UNDERGO AN EXTENDED PERIOD OF ONLY MODEST GROWTH IN VOLUME AND PROFITABILITY EARNINGS FROM RYLAND'S FINANCIAL SERVICE BUSINESSES ARE LIKELY TO BE PRESSURED BY RISING INTEREST RATES IN THE NEAR TO INTERMEDIATE TERM THE ANALYSIS SAID NORTHERN TELECOM LTD MISSISSAUGA ONTARIO STANDARD & POOR'S CORP CITING INTENSE INDUSTRY COMPETITION AND THE COMPANY'S EMPHASIS ON GLOBAL DIVERSIFICATION DOWNGRADED SENIOR DEBT RATINGS FOR THE TELECOMMUNICATIONS CONCERN AND ITS RELATED ENTITIES TO SINGLEA FROM SINGLEAPLUS ABOUT 16 BILLION OF DEBT IS AFFECTED S&P REMOVED THE RATINGS FROM CREDITWATCH WHERE THEY WERE PLACED JULY 22 ADDING THAT IT EXPECTS THE COMPANY'S PROFITABILITY AND CASH FLOW TO REMAIN UNDER PRESSURE OVER THE INTERMEDIATE TERM THE DEBTRATING AGENCY NOTED THAT NORTHERN TELECOM'S CENTRAL OFFICE SWITCHES WHICH ACCOUNT FOR ALMOST HALF OF SALES FACE HEATED COMPETITION BUT THE COMPANY'S OUTLOOK IS STABLE S&P SAID BECAUSE OF ITS SIGNIFICANT RESEARCH RESOURCES CUSTOMER BASE AND FAIRLY STRONG BALANCE SHEET A SPOKESMAN FOR NORTHERN TELECOM SAID THE COMPANY IS SOMEWHAT DISAPPOINTED THAT S&P DIDN'T WAIT TO SEE RESULTS OF A NEW RESTRUCTURING BEFORE ASSESSING THE RATING BUT IT'S NOT UNEXPECTED UNDER THE CIRCUMSTANCES HE ADDED 9308110100 930811 CORPORATE FOCUS INFORMATION AMERICA ACQUISITION IS CALLED BOLD RISKY COMPANY IS DWARFED BY THE PARAMOUNT COMMUNICATIONS UNITS IT WILL BUY BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THIS IS A JONAHANDTHEWHALE STORY BUT THIS TIME JONAH IS DOING THE SWALLOWING INFORMATION AMERICA INC A PROVIDER OF ONLINE LEGAL DATA AND ONE OF THE NATION'S FASTESTGROWING SMALL COMPANIES IN THE 1980S IS TAKING A RISKY STEP TO REGAIN ITS MOMENTUM THE ACQUISITION OF THREE UNITS OF PARAMOUNT COMMUNICATIONS INC THAT TOGETHER HAVE REVENUE AND A WORK FORCE 4 1/2 TIMES THE SIZE OF INFORMATION AMERICA THE PLAN DISCLOSED IN LATE JUNE WILL LIKELY HAVE ONE OF TWO RESULTS ACCORDING TO INDUSTRY ANALYSTS PROPEL THE ONETIME HIGHFLIER INTO THE FRONT RANKS OF THE BOOMING ONLINE INFORMATION BUSINESS OR LEAVE IT IN THE ARMS OF PARAMOUNT WHICH WILL GET A 49 STAKE IN INFORMATION AMERICA AND THE CHANCE TO BUY MORE THE COMPANY'S TOP MANAGEMENT CLEARLY BELIEVES IN THE FORMER THIS IS GOING TO BE AN INCREDIBLE OPPORTUNITY FOR US TO BUILD A NEW NAME IN THE INFORMATION INDUSTRY SAYS CHAIRMAN BURTON B GOLDSTEIN JR IF WE DO OUR JOB RIGHT I SUSPECT THE LAST THING IN THE WORLD PARAMOUNT IS GOING TO BE CONCERNED ABOUT IS WHO CONTROLS INFORMATION AMERICA TO DATE MOST INDUSTRY OBSERVERS ARE PLACING THEIR MONEY ON MR GOLDSTEIN AND MARY A MADDEN INFORMATION AMERICA'S COFOUNDER AND PRESIDENT WHILE THE TWO EXECUTIVES FACE HURDLES ASSIMILATING 900 EMPLOYEES INTO A 200PERSON STAFF FENDING OFF AGILE COMPETITORS AND AVOIDING CRITICISM FROM PRIVACY GROUPS THE PLANNED USE OF THE NEW ACQUISITIONS TO OFFER MORE TYPES OF INFORMATION TO MORE TYPES OF CUSTOMERS IS WINNING PLAUDITS THEY HAD TO ASK THE QUESTION DO THEY FASHION THEMSELVES AS A BIG GUN OR DOES A BIG GUN PUT THEM AWAY SAYS MAUREEN FLEMING EDITOR OF INFORMATION INDUSTRY BULLETIN A TRADE NEWSLETTER INDEED INFORMATION AMERICA FOUND SUCCESS BY FILLING A LUCRATIVE NICHE IN THE DATARETRIEVAL BUSINESS CATERING TO THE LEGAL INDUSTRY'S INSATIABLE APPETITE FOR DOCUMENTS BUT WHEN LAW FIRMS BEGAN CUTTING COSTS THE COMPANY FOUND ITSELF LOCKED IN A BOX SAYS KENNETH BERENTS CODIRECTOR OF RESEARCH AT WHEAT FIRST BUTCHER & SINGER THE PARAMOUNT ACQUISITIONS HE SAYS ALLOW THEM TO GET INTO OTHER AREAS INFORMATION AMERICA FOUNDED IN 1982 STARTED SIMPLY ENOUGH MR GOLDSTEIN A LOCAL ATTORNEY AND MS MADDEN A LIBRARY AUTOMATION SPECIALIST NOTICED THAT LAWYERS WERE SPENDING HOURS IN THE COUNTY COURTHOUSE SEARCHING FOR TAX LIENS REALESTATE NOTICES AND HUNDREDS OF OTHER DOCUMENTS THEIR IDEA WAS TO BUY COPIES OF THE RECORDS WHICH ALREADY WERE COMPUTERIZED AND SELL ACCESS TO THE DATA AT FIRST THE GOAL WAS SIMPLY TO HELP PEOPLE AVOID A TRIP TO THE COURTHOUSE SAYS MR GOLDSTEIN BUT IT SOON BECAME CLEAR THAT CUSTOMERS NEEDED MORE DOCUMENTS AND DATA THAN WERE AVAILABLE IN FULTON COUNTY GA IN THE MID1980S THE COMPANY BEGAN OPENING OFFICES ACROSS THE COUNTRY THE RESULTS WERE SPECTACULAR INFORMATION AMERICA FOUND ITSELF RIDING THE BOOM IN ONLINE INFORMATION SERVICES A MULTIBILLIONDOLLAR INDUSTRY THAT WAS GROWING AT DOUBLEDIGIT RATES BETWEEN 1987 AND 1991 REVENUE AT THE COMPANY MORE THAN TRIPLED TO 183 MILLION AND 97 OF THE NATION'S 100 LARGEST LAW FIRMS SIGNED ON AS CLIENTS IN 1991 INFORMATION AMERICA WENT PUBLIC AT ALMOST THE SAME MOMENT HOWEVER THE RECESSION AND CLIENTS' COSTCONSCIOUSNESS BEGAN TAKING A TOLL ON THE LEGAL PROFESSION AND AS A CONSEQUENCE ON INFORMATION AMERICA THE ANNUAL 20 TO 30 GROWTH IN THE ONLINE LEGAL INFORMATION INDUSTRY SLOWED TO 2 TO 7 ACCORDING TO INFORMATION INDUSTRY BULLETIN AND COMPETITORS BEGAN OFFERING SIMILAR SERVICES IN 1992 OPERATING PROFIT AT INFORMATION AMERICA FELL FOR THE FIRST TIME IN FOUR YEARS THE COMPANY'S STOCK MEANWHILE WAS LANGUISHING BELOW THE INITIAL OFFERING PRICE OF 725 A SHARE MR GOLDSTEIN AND MS MADDEN ALREADY HAD BEGUN TAKING STEPS TO BROADEN INFORMATION AMERICA'S OFFERINGS LOCATING RECORDS OF ASSETS AND PEOPLE FOR INSTANCE AND PROVIDING BACKGROUND REPORTS ON BUSINESSES THE PARAMOUNT ACQUISITIONS HOWEVER LIKELY WILL DETERMINE THE COMPANY'S COURSE THE PURCHASES FOR WHICH INFORMATION AMERICA WILL ISSUE SHARES GIVE THE COMPANY TWO THINGS HEFT AND DIVERSITY THE NUMBER OF SHARES HAS NOT BEEN DISCLOSED FOR ALL ITS SUCCESS INFORMATION AMERICA IS STILL DWARFED BY THE LARGEST PLAYERS IN THE LEGALSERVICES FIELD LEXIS PART OF DAYTON OHIOBASED MEAD CORP HAD ESTIMATED REVENUE OF 235 MILLION IN 1991 ACCORDING TO DIGITAL INFORMATION GROUP IN STAMFORD CONN PUBLISHER OF INFORMATION INDUSTRY BULLETIN BY CONTRAST THE THREE PARAMOUNT UNITS HAD 83 MILLION IN REVENUE LAST YEAR THE LARGEST OF THE THREE PRENTICE HALL LEGAL & FINANCIAL SERVICES SHOULD ENABLE INFORMATION AMERICA TO DIVERSIFY WELL BEYOND ITS CORE AUDIENCE OF LAW FIRMS WHICH ACCOUNT FOR ABOUT 70 OF THE COMPANY'S CLIENTS WHILE PRENTICE HALL TOO PROVIDES SEARCH AND RETRIEVAL OF PUBLIC DOCUMENTS ITS CUSTOMERS ARE PRIMARILY NONLEGAL BANKS COMPANIES THAT GATHER CREDIT INFORMATION GOVERNMENT AGENCIES AND PRIVATE INVESTIGATIVE CONCERNS EQUALLY IMPORTANT PRENTICE HALL IS A MAJOR PLAYER IN THE 85 MILLION CORPORATE REPRESENTATIVE MARKET COMPANIES FOR INSTANCE THAT DO BUSINESS IN SEVERAL STATES OFTEN HIRE A REGISTERED AGENT OR REPRESENTATIVE IN EACH STATE TO RECEIVE LEGAL PAPERS SUCH AS LAWSUITS A BUSINESS UNTAPPED BY INFORMATION AMERICA IN ALL PRENTICE HALL WILL ADD OFFICES IN 13 CITIES TO INFORMATION AMERICA'S NETWORK OF BRANCHES A DATABASE WITH MORE THAN 250 MILLION RECORDS AND A VETERAN SALES STAFF TO HELP RUN THE OPERATION INFORMATION AMERICA RECENTLY HIRED A NEW CHIEF FINANCIAL OFFICER DONALD E ELLIS JR WHO SERVED IN THE SAME POSITION AT KNOWLEDGEWARE INC AN ATLANTA SOFTWARE COMPANY DURING A TIME WHEN THAT COMPANY'S SALES GREW TO 124 MILLION FROM 11 MILLION WHILE INDUSTRY ANALYSTS APPLAUD THE PRENTICE HALL ACQUISITION THE DECISION TO BUY THE TWO ADDITIONAL SUBSIDIARIES BOTH SOFTWARE CONCERNS WITH FEW LINKS TO INFORMATION AMERICA'S CORE BUSINESS PUZZLES THEM MANY OBSERVERS EXPECT THE TWO COMPANIES TO BE JETTISONED FOR QUICK CASH OFFICIALS AT INFORMATION AMERICA SAY ONLY THAT SUCH SPECULATION IS PREMATURE JAMES A SENN DIRECTOR OF GEORGIA STATE UNIVERSITY'S INFORMATION TECHNOLOGY MANAGEMENT GROUP GIVES INFORMATION AMERICA HIGH MARKS FOR ITS EXPANSION PLANS AT THE SAME TIME HOWEVER HE SEES PITFALLS IN BUILDING A BUSINESS ON NONPROPRIETARY INFORMATION YOU CAN'T EVER STAY STILL MR SENN SAYS THAT'S BECAUSE COMPETITORS DON'T NEED A NEW IDEA THEY HAVE ONLY TO COPY AND MARKET THE SAME DATA THAT INFORMATION AMERICA IS ALREADY SELLING THE TRICK THEN IS TO KEEP COMING UP WITH WAYS SAYS MR SENN TO ADD VALUE TO YOUR PRODUCTS MEAD CORP'S LEXIS UNIT WEST PUBLISHING CO 9308110099 930811 US TO BEGIN CHALLENGING PRICEFIXING INVOLVING MANUFACTURERS DISTRIBUTORS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE CLINTON ADMINISTRATION RESCINDING A REAGANERA PRACTICE SAID IT WILL BEGIN CHALLENGING PRICEFIXING ARRANGEMENTS BETWEEN MANUFACTURERS AND THEIR DISTRIBUTORS IN A SPEECH TO THE AMERICAN BAR ASSOCIATION ASSISTANT ATTORNEY GENERAL ANNE BINGAMAN SAID THAT THE JUSTICE DEPARTMENT WILL NOW TREAT CASES OF SOCALLED VERTICAL PRICING AS ILLEGAL THESE INCLUDE INSTANCES WHERE MANUFACTURERS IMPOSE A MINIMUM RETAIL PRICE ON THEIR PRODUCTS MS BINGAMAN SAID AFTER THE SPEECH THAT A MORE AGGRESSIVE STANCE COULD RESULT IN LOWER PRICES TO CONSUMERS BUT ANTITRUST LAWYERS SAID THEY WERE SKEPTICAL THE IMPACT WILL BE GREAT IN THE REAL WORLD IT MAKES VERY LITTLE DIFFERENCE TO MOST CONSUMERS SAID ALAN SILBERMAN WHO IS SLATED TO BECOME CHAIRMAN OF THE ABA'S ANTITRUST SECTION DOES IT HAVE A REAL CONSUMER EFFECT NOT IN THE IMMEDIATE RUN MS BINGAMAN SAID THE DEPARTMENT IS NOT DECLARING WAR ON ALL VERTICAL ARRANGEMENTS SHE SAID THE DEPARTMENT MAY LOOK FAVORABLY ON SOME NONPRICE RESTRAINTS FOR INSTANCE AN ARRANGEMENT IN WHICH A DISTRIBUTOR AGREES TO PROVIDE MORE CUSTOMER SERVICE IF GRANTED EXCLUSIVE RIGHTS TO SELL A PRODUCT IN A GIVEN TERRITORY THE JUSTICE DEPARTMENT WHICH SHARES ANTITRUST ENFORCEMENT AUTHORITY WITH THE FEDERAL TRADE COMMISSION HASN'T BROUGHT A VERTICALRESTRAINT CASE SINCE 1980 REAGAN ADMINISTRATION OFFICIALS CITING FREEMARKET THEORIES CONTENDED THAT THE ARRANGEMENTS BETWEEN SUPPLIERS AND RETAILERS COULD ACTUALLY BENEFIT CONSUMERSFOR EXAMPLE BY ENSURING BETTER PRODUCT SERVICING BUT CONSUMER ADVOCATES SAY VERTICAL PRICING IS AN ATTEMPT BY MANUFACTURERS TO ELIMINATE DISCOUNT RETAILERS PARTICULARLY IN INDUSTRIES SUCH AS CONSUMER ELECTRONICS SPORTING GOODS AND CHILDREN'S APPAREL THE PASSING OF THE REAGAN GUIDELINES ADOPTED IN 1985 APPARENTLY WON'T BE MOURNED BY THOSE WHO WERE INVOLVED IN WRITING THEM YOU WON'T FIND A LOT OF PEOPLE EVEN AMONG THE PEOPLE WHO WORKED ON THOSE GUIDELINES WHO WILL GIVE THEM A ROUSING DEFENSE SAID CHARLES RULE WHO HELD MS BINGAMAN'S POSITION DURING THE LAST PORTION OF THE REAGAN ADMINISTRATION OF ALL THE ANTITRUST GUIDELINES THE DEPARTMENT HAS FORMULATED THOSE ON VERTICAL RESTRAINTS PROBABLY WERE THE LEAST USEFUL HE ADDED MS BINGAMAN ALSO ANNOUNCED AN EXPANSION OF A POLICY IN WHICH COMPANIES CAN ESCAPE PROSECUTION AT THE DISCRETION OF FEDERAL OFFICIALS IF THEY DISCLOSE THEIR INVOLVEMENT IN POSSIBLE ANTITRUST VIOLATIONS PREVIOUSLY A COMPANY COULD RECEIVE LENIENT TREATMENT ONLY IF IT DISCLOSED ITS ACTIVITIES BEFORE THE GOVERNMENT HAD LAUNCHED AN INVESTIGATION UNDER THE EXPANDED POLICY CORPORATIONS THAT DISCLOSE THE ACTIVITIES MAY QUALIFY FOR LENIENCY EVEN AFTER THE INITIATION OF AN INVESTIGATION 9308110098 930811 WHO'S NEWS NEW PLAN REALTY TRUST NEW PLAN REALTY TRUST NEW YORK DAVID OZERKIS 55 YEARS OLD FORMERLY CHIEF ENGINEER FOR THE NEW YORK CITY COMPTROLLER'S OFFICE WAS NAMED VICE PRESIDENT OF CONSTRUCTION A NEW POSITION FOR THIS REAL ESTATE INVESTMENT TRUST MR OZERKIS WILL BE IN CHARGE OF CONSTRUCTION FOR THE TRUST'S 100 SHOPPING CENTER AND GARDEN APARTMENT PROPERTIES IN 18 STATES 9308110097 930811 PEPPERAND SALT AND AT NURSERIES DIRT'S NOT CHEAP E B DE VITO THAT IS SEEN NOW AND THEN BUT IT NEVER SAYS WHEN 9308110096 930811 INTERNATIONAL HEINEKEN EXPANDS IN CHINA AMSTERDAM DUTCH BREWER HEINEKEN NV IS EXPANDING ITS PRESENCE IN CHINA BY TAKING A MINORITY STAKE IN A SINGAPOREBASED COMPANY THAT WILL TAKE OVER A BREWERY IN FUJIAN PROVINCE HEINEKEN SAID ITS 425OWNED AFFILIATE ASIA PACIFIC BREWERIES LTD WILL HOLD 32 OF THE VENTURE WHICH WILL BE MAJORITY OWNED BY TEE YIH JIA FOOD MANUFACTURING PTE LTD BOTH ARE BASED IN SINGAPORE TEE YIH JIA FOOD MANUFACTURING BOUGHT THE FUJIAN BREWERY FROM THE CHINESE GOVERNMENT EARLIER THIS YEAR AND RENAMED IT TEE YIH FUJIAN BREWERY CO AS REPORTED ASIA PACIFIC BREWERIES WILL INVEST 23 MILLION SINGAPORE DOLLARS US143 MILLION OF AN EXPECTED TOTAL INVESTMENT OF S72 MILLION IN UPGRADING THE CHINESE BREWERY AND SUPPLYING IT WITH WORKING CAPITAL OTHER FINANCIAL DETAILS WEREN'T DISCLOSED 9308110095 930811 INTERNATIONAL IN LATEST FORECAST BONN SAYS RECOVERY IS UNCERTAIN JOBLESSNESS COULD GROW BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT THE GERMAN GOVERNMENT WARNED THAT A 1993 ECONOMIC RECOVERY WAS UNCERTAIN AND THAT JOBLESS RANKS COULD SWELL TO FOUR MILLION BY NEXT YEAR THE GRIM OUTLOOK CAME AS BONN FACED STIFFENING RESISTANCE TO PLANNED 1994 SPENDING CUTS AND PROPOSALS TO DEREGULATE GERMAN LABOR MARKETS THREATENING THE GOVERNMENT'S LONGERTERM EFFORT TO CONTROL RUNAWAY FISCAL SPENDING AND RESTORE GERMAN COMPETITIVENESS ECONOMICS MINISTER GUENTER REXRODT IN THE GOVERNMENT'S LATEST ECONOMIC STATUS REPORT SAID THERE WERE SIGNS OF IMPROVING BUSINESS CONFIDENCE AND DEMAND FOR EXPORTS BUT WHETHER THIS MEANS THE APPROACH OF A SUSTAINABLE ECONOMIC RECOVERY CANNOT YET BE JUDGED WITH ABSOLUTE CERTAINTY HE SAID AT A NEWS CONFERENCE THE MINISTER SAID WESTERN GERMANY'S ECONOMY COULD SHOW SIGNS OF A MILD RECOVERY IN THIS YEAR'S SECOND HALF IN THAT CASE THE EXPECTED 1993 CONTRACTION IN WESTERN GERMANY'S GROSS DOMESTIC PRODUCT COULD BE HELD TO 15 IN REAL OR INFLATIONADJUSTED TERMS AND FUEL 15 GROWTH IN 1994 HE SAID FOR EASTERN GERMANY MR REXRODT SAID THE GOVERNMENT EXPECTS AT LEAST 5 REAL GROWTH THIS YEAR WHICH ECONOMISTS SAY STILL PROVIDES FOR A REAL CONTRACTION OF NEARLY 2 IN GERMANY AS A WHOLE THE GOVERNMENT'S 1993 PROJECTION FOR WESTERN GERMANY ELICITED SKEPTICISM FROM PRIVATESECTOR ECONOMISTS WHO SEE WESTERN GERMANY'S ECONOMY SHRINKING BY 2 OR MORE THIS YEAR WITH A SLIM CHANCE OF IMPROVEMENT LATE IN THE YEAR THE GOVERNMENT'S EMPLOYMENT FORECAST WAS LESS HOPEFUL THE NUMBER OF UNEMPLOYED UNFORTUNATELY WILL RISE SUBSTANTIALLY IN COMING MONTHS AN UNEMPLOYMENT TOTAL OF FOUR MILLION AT THE START OF NEXT YEAR CANNOT BE RULED OUT MR REXRODT SAID GERMAN UNEMPLOYMENT STOOD AT 35 MILLION IN JULY INCLUDING 233 MILLION JOBLESS IN WESTERN GERMANY A RECORD FOR THE MONTH FOR JULY THE WESTERN GERMAN UNEMPLOYMENT RATE WAS 75 WHILE IT WAS 153 IN EASTERN GERMANY SIGNS OF RECOVERY IN GERMAN INDUSTRIAL PRODUCTION AND ORDER BOOKINGS THIS SPRING WERE DOUSED BY UNEXPECTED DECLINES IN JUNE GERMANY'S WORST RECESSION SINCE WORLD WAR II COMPLICATES THE 1994 FISCAL CONSOLIDATION SOUGHT BY CHANCELLOR HELMUT KOHL WHO DECLARED AGAIN THIS WEEK THAT GERMANS ARE LIVING ABOVE THEIR MEANS AND HAVE TO WORK LONGER AND DEMAND LESS TO REGAIN COMPETITIVENESS PUSHING THE MESSAGE AGAIN YESTERDAY MR REXRODT SAID AS ECONOMICS MINISTER I REGRET HAVING TO SAY THAT WAGES AND NONWAGE BENEFITS ARE NO LONGER IN ALIGNMENT WITH PRODUCTIVITY IN OUR COUNTRY IN A BUDGET UP FOR CABINET APPROVAL TODAY MR KOHL AND FINANCE MINISTER THEO WAIGEL SEEK TO CUT SOCIAL SPENDING BY 21 BILLION MARKS 124 BILLION IN 1994 TO HOLD FEDERAL BORROWING TO 675 BILLION MARKS SEEN AS A CONDITION FOR THE INFLATIONFEARING BUNDESBANK TO LOWER GERMAN INTEREST RATES EVEN DEEPER SPENDING CUTS WOULD FOLLOW THROUGH 1998 9308110094 930811 BUSINESS BRIEF FOODMAKER POSTS LOSS FOR THIRD QUARTER REFLECTING BIG CHARGE TO SETTLE LAWSUIT FOODMAKER INC POSTED A FISCAL THIRDQUARTER LOSS AFTER TAKING A 404 MILLION CHARGE TO SETTLE A LAWSUIT FILED BY A GROUP OF ITS JACK IN THE BOX FRANCHISEES THE SAN DIEGOBASED RESTAURANT OPERATOR REPORTED A NET LOSS OF 455 MILLION OR 116 A SHARE FOR THE PERIOD ENDED JULY 4 IN THE YEAREARLIER QUARTER THE COMPANY EARNED 47 MILLION OR 11 CENTS A SHARE AFTER AN EXTRAORDINARY CHARGE OF 32 MILLION FROM EARLY DEBT RETIREMENT FOODMAKER ALSO ANNOUNCED NEW TERMS FOR ITS PARTICIPATION IN THE PROPOSED ACQUISITION OF CLOSELY HELD RESTAURANT ENTERPRISES GROUP INC INCREASING ITS STAKE IN RESTAURANT ENTERPRISES TO 41 SALES IN THE LATEST PERIOD SLIPPED 1 TO 2802 MILLION FROM 283 MILLION SALES FROM THE JACK IN THE BOX FASTFOOD CHAIN DROPPED 92 TO 228 MILLION FROM A YEAR EARLIER REFLECTING THE UNIT'S CONTINUING FINANCIAL DIFFICULTIES FOLLOWING A JANUARY FOODPOISONING OUTBREAK THAT CAUSED TWO DEATHS AND LEFT 450 PEOPLE ILL WITH THIS SETTLEMENT BEHIND US WE DO NOT ANTICIPATE ANY SIGNIFICANT CHARGES TO FUTURE EARNINGS RELATED TO THE JANUARY INCIDENT SAID FOODMAKER PRESIDENT JACK GOODALL THE COMPANY HAD 10 MILLION IN ONETIME EXPENSES TIED TO THE OUTBREAK IN ITS SECOND QUARTER FOODMAKER'S 404 MILLION THIRDQUARTER CHARGE COVERED SETTLEMENTS AND ASSOCIATED COSTS FROM A LAWSUIT FILED LAST MONTH BY FRANCHISEES REPRESENTING 325 JACK IN THE BOX RESTAURANTS ALL BUT 100 OF ITS FRANCHISED OUTLETS THE SUIT CHARGED THAT FOODMAKER'S PENDING SALE OF ITS CHI CHI'S UNIT FRAUDULENTLY AIMS TO PLACE THE MEXICAN RESTAURANT CHAIN BEYOND THE REACH OF FOODMAKER CREDITORS IT ALSO CHARGED NEGLIGENCE OVER THE FOODPOISONING INCIDENT WHICH STEMMED FROM BACTERIA IN TAINTED HAMBURGER MEAT AT JACK IN THE BOX RESTAURANTS IN THE PACIFIC NORTHWEST A SPOKESWOMAN FOR FOODMAKER SAID THE SUIT HASN'T BEEN DISMISSED BUT NOTED THE LATEST CHARGE INCLUDES A RESERVE FOR SETTLEMENTS WITH REMAINING PLAINTIFFS AS WELL AS WITH OTHER FRANCHISEES WHO MIGHT HAVE CLAIMS AGAINST THE COMPANY BUT HADN'T JOINED THE SUIT SO FAR SETTLEMENTS HAVE BEEN REACHED WITH 90 OF ALL 425 FRANCHISEES INCLUDING THE MAJORITY OF THE SUIT'S PLAINTIFFS SHE SAID ABE ALIZADEH CHAIRMAN OF THE NATIONAL JACK IN THE BOX FRANCHISE ASSOCIATION SAID HE IS VERY OPTIMISTIC THAT THE REMAINING FRANCHISEES WILL SETTLE SOON FRANKLY WE'RE VERY PLEASED WE COULD SETTLE OUR DIFFERENCES HE SAID FOODMAKER SHARES ROSE 1125 OR 13 TO 10 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9308110093 930811 FDIC BANK FUND SOARS TO 68 BILLION BUT BANKERS CLAIM THAT'S UNDERSTATED BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL FUND THAT INSURES BANK DEPOSITS SOARED TO 68 BILLION IN THE FIRST HALF OF THIS YEAR BUT THE BANKING INDUSTRY CLAIMS THAT THE GOVERNMENT IS UNDERSTATING THE FUND'S HEALTH UNAUDITED FIGURES RELEASED BY THE FEDERAL DEPOSIT INSURANCE CORP PUT THE BANK INSURANCE FUND BALANCE ON JUNE 30 AT 68 BILLION UP FROM A 101 MILLION DEFICIT AT THE END OF 1992 AND A 703 BILLION DEFICIT AT THE END OF 1991 WE HAVE SEEN A REMARKABLE TURNAROUND OF NEARLY 14 BILLION IN JUST 18 MONTHS SAID FDIC CHAIRMAN ANDREW HOVE DESPITE THE IMPROVEMENT THE AMERICAN BANKERS ASSOCIATION ARGUES THAT THE BALANCE IS TOO LOW THE GROUP BLAMES THE GENERAL ACCOUNTING OFFICE THE CONGRESSIONAL AGENCY THAT AUDITS THE FDIC'S BOOKS FOR IMPOSING UNREALISTICALLY CONSERVATIVE ACCOUNTING PRINCIPLES IN A LETTER TO COMPTROLLER GENERAL CHARLES BOWSHER ABA PRESIDENT WILLIAM BRANDON ACCUSED THE GAO OF OVERESTIMATING POTENTIAL LOSSES FROM BANK FAILURES THAT PRACTICE ACCORDING TO THE ABA HAS FORCED THE FDIC TO SET ASIDE UNREALISTICALLY LARGE RESERVES AND RESULTED IN LOWER BALANCES MR BRANDON ASKED THE GAO TO RESTATE THE FUND'S BALANCES FOR 1991 AND 1992 WHICH IN TURN WOULD BOOST ITS CURRENT BALANCE THE SIZE OF THE FUND WHICH INSURES BANK DEPOSITS OF AS MUCH AS 100000 HAS A LARGE ECONOMIC IMPACT ON THE INDUSTRY BY LAW THE PREMIUM THAT BANKS PAY FOR DEPOSIT INSURANCE MAY NOT FALL BELOW AN AVERAGE OF 23 CENTS FOR EACH 100 OF DOMESTIC DEPOSITS UNTIL THE FUND RISES TO 125 OF DEPOSITS AS OF JUNE 30 THE RATIO WAS 035 OF INSURED DEPOSITS DURING THE CONGRESSIONAL DEBATE LEADING TO PASSAGE OF THE 1991 BANKING LAW MR BOWSHER WARNED REPEATEDLY THAT A WAVE OF BANK FAILURES WAS DEPLETING THE FUND AND THAT A TAXPAYER BAILOUT COULD BE NECESSARY CONGRESS RESPONDED BY VOTING THE FUND A 30 BILLION LINE OF CREDIT FROM THE TREASURY BOOSTING DEPOSIT INSURANCE PREMIUMS AND SLAPPING NEW REGULATIONS ON BANKS BUT MR BOWSHER AND OTHER DOOMSAYERS WERE PROVEN WRONG THE BANKING INDUSTRY RECOVERED RAPIDLY IN 1992 WITH PROFITS RISING TO RECORD LEVELS AND FAILURES DECLINING AND THE FUND NEVER HAD TO DRAW ON ITS 30 BILLION LINE OF CREDIT TO COVER LOSSES FROM BANK CLOSINGS THE DROP IN BANK FAILURES COMBINED WITH THE HIGHER PREMIUMS HAS AUGMENTED THE FUND BUT THE GLOOMY PROJECTIONS WEAKENED CONFIDENCE IN THE BANKING INDUSTRY AND RESULTED IN HARSH REGULATIONS THAT HAVE ACTUALLY UNDERMINED ECONOMIC GROWTH MR BRANDON SAID WE BELIEVE THAT A RESTATEMENT OF THE BANK INSURANCE FUND'S CONDITION FOR 1991 AND 1992 WOULD SHOW THAT IT WAS NEVER INSOLVENT MR BRANDON SAID IN HIS LETTER AND THE FUND'S CURRENT BALANCE HE SAID IS PROBABLY UNDERSTATED BECAUSE THE FUND IS HOLDING RESERVES IN ANTICIPATION OF BANK FAILURES THAT WON'T OCCUR ROBERT GRAMLING THE GAO'S DIRECTOR OF CORPORATE FINANCIAL AUDITS DEFENDED THE AGENCY THE FDIC PUT THOSE FINANCIAL STATEMENTS OUT WE BELIEVE OUR OPINION OF THOSE STATEMENTS WAS CORRECT HE SAID ONE REASON FOR MR ELY'S OPTIMISM IS A SECTION OF THE BUDGET REDUCTION ACT PRESIDENT CLINTON SIGNED INTO LAW YESTERDAY THAT ENACTS A NATIONWIDE DEPOSITOR PREFERENCE PROVISION THAT STRENGTHENS THE FDIC'S HAND TO RECOVER THE COST OF PROTECTING DEPOSITORS WHEN A BANK FAILS 9308110091 930811 ABC TO TEST RUNNING PRIMETIME REPEATS AMID PAYPERVIEW NEW YORK CAPITAL CITIES/ABC WILL TEST RUNNING REPEATS OF PRIMETIME PROGRAMS SUCH AS 20/20 AND DAYTIME SOAPS SUCH AS ALL MY CHILDREN ON A PAYPERVIEW BASIS IN ANOTHER EXPERIMENT HERALDING TELEVISION ON DEMAND ABC HAS AGREED IN PRINCIPLE WITH YOUR CHOICE TV INC A UNIT OF DISCOVERY COMMUNICATIONS INC TO DEPLOY THE TESTS TO MORE THAN 20000 CABLE HOUSEHOLDS IN NINE CABLE SYSTEMS ACROSS THE NATION THE TESTS WHICH BEGIN ON STAGGERED DATES FROM OCTOBER THROUGH NEXT APRIL WILL LAST FOUR MONTHS ALTHOUGH ABC IS THE ONLY NETWORK YET TO AGREE TO THE TEST A SPOKESMAN AT DISCOVERY COMMUNICATIONS SAID ALL THE NETWORKS INCLUDING NATIONAL BROADCASTING CO A UNIT OF GENERAL ELECTRIC CO CBS INC AND FOX A UNIT OF NEWS CORP WERE INVOLVED IN DISCUSSIONS WE HOPE TO HAVE THEM ALL PARTICIPATING HE SAID WE WANT TO SIMULATE THE POSSIBILITIES THAT WILL COME WITH DIGITAL COMPRESSION DISCOVERY CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN HENDRICKS HAS BEEN LOBBYING CABLE OPERATORS AND BROADCAST NETWORKS FOR MONTHS TO CONVINCE THEM OF THE POTENTIAL OF YOUR CHOICE TV WHICH HAS DEVELOPED AN ELECTRONIC GUIDE TO NAVIGATE THE COMING WORLD OF 500 CHANNELS DESPITE THE EARLY OPTIMISM FOR YOUR CHOICE THOUGH MANY ANALYSTS QUESTION WHETHER CABLE SUBSCRIBERS STILL REELING FROM THE RECENT YEARS OF UNREGULATED RATE INCREASES WILL WANT TO PAY MORE FOR TV PROGRAMMING ALSO BROADCAST NETWORKS ARE STILL WARY OF A FUTURE FOR THEIR PROGRAMMING THAT MAY NOT INCLUDE COMMERCIALS 9308110089 930811 REVIEW & OUTLOOK EDITORIAL THERE THEY GO AGAIN WHEN PRESIDENT CLINTON SAID LAST WEEK THAT HIS TAX PROGRAM WAS JUST THE BEGINNING WE HAD TO ADMIT TO SOME PUZZLEMENT HADN'T HE DONE ENOUGH ALREADY OUR WONDER HAS ONLY GROWN NOW THAT WE'VE HAD A LOOK AT LABOR SECRETARY ROBERT REICH'S PLANS TO TAKE ANOTHER WHACK AT SMALL BUSINESS JOB CREATION THOSE PLANS ARE SKETCHED OUT IN A CONFIDENTIAL JULY 20 MEMO FROM MR REICH TO MR CLINTON THAT HAS FOUND ITS WAY INTO OUR HANDS ASKED FOR COMMENT A LABOR DEPARTMENT SPOKESWOMAN DECLINED TO CONFIRM OR DENY THE MEMO'S EXISTENCE MOST OF THE SIXPAGE MEMORANDUM IS DEVOTED TO ARGUING FOR ANOTHER INCREASE IN THE MINIMUM WAGE AND THIS IS THE BIG POLITICAL PLAY THEN INDEXING IT FOREVER TO INFLATION IT IS TIME MR REICH WROTE HIS OLD FRIEND THE PRESIDENT ON THE EVE OF THE BUDGET VOTE TO INVESTIGATE WHAT MINIMUM WAGE REFORMS MAY BE APPROPRIATE TO ACHIEVE THE GOAL OF MAKING WORK PAY THE MINIMUM WAGE SHOULD BE RAISED AND THEN INDEXED ACTUALLY WE WOULD HAVE THOUGHT IT TIME TO GIVE EMPLOYERS A CHANCE TO ADJUST TO HIGHER TAXES YET MR CLINTON SEEMS READY TO HIT THEM AGAIN WITH A BIG NEW HEALTH CARE MANDATE A DE FACTO TAX HIKE AS FED CHAIRMAN ALAN GREENSPAN HAS NOTED AND NOW ONE OF MR CLINTON'S CONFIDANTES IS RECOMMENDING THAT HE SLAP EMPLOYERS WITH AN EVER RISING MANDATED WAGE INCREASE IN PERPETUITY MR REICH HAS TALKED A LOT ABOUT THE JOBLESS RECOVERY WHICH HE COULD YET MAKE A SELFFULFILLING PROPHECY THE REICH PROPOSAL COMES DESPITE THE FACT THAT FORMER PRESIDENT BUSH AGREED IN 1989 TO RAISE THE BASIC WAGE TO ITS CURRENT 425 FROM 335 WHERE IT HAD STAYED THROUGHOUT THE JOB CREATION BOOM OF THE 1980S BUT MR REICH NOW ARGUES THAT INDEXING THE MINIMUM WAGE AT 450 AN HOUR IS A MINIMUM HIS EMPHASIS PREREQUISITE TO REACHING THE GOAL OF LIFTING FAMILIES OF FOUR WITH FULLTIME WORKERS OUT OF POVERTY OF COURSE TO MAKE WORK PAY YOU FIRST HAVE TO HAVE WORK A FACT MR REICH ALL BUT IGNORES YET A 1978 SURVEY FOR THE AMERICAN ECONOMIC ASSOCIATION SHOWED THAT 90 OF ECONOMISTS BELIEVED THAT MINIMUM WAGE HIKES COST LOWSKILLED WORKERS THEIR JOBS IN 1988 ACCORDING TO THE FORTUNE ENCYCLOPEDIA OF ECONOMICS ONLY 8 OF WORKERS WHO RECEIVED THE WAGE MINIMUM MAINTAINED FAMILIES AND NOT ALL OF THOSE WERE POOR BUT BY PRICING SUCH WORKERS OUT OF THE LABOR MARKET MR REICH MIGHT VERY WELL MAKE THEM POOR IN 1988 ABOUT 60 OF MINIMUM WAGE WORKERS WERE YOUNG PEOPLE AGES 16 TO 24 AND ABOUT 70 WORKED ONLY PARTTIME THESE ARE EXACTLY THE SORT OF PEOPLE WHO NEED AN ENTRYLEVEL JOB TO ACQUIRE THE SKILLS AND WORK HABITS TO MOVE UP THE ECONOMIC LADDER ONLY IN THE SECONDTOLAST PARAGRAPH OF HIS MEMO DOES MR REICH ADMIT THIS MIGHT BE A PROBLEM NOTING THAT MOST MINIMUM WAGE WORKERS ARE NOT POOR AND THE POTENTIAL EFFECTS OF A MINIMUM WAGE INCREASE ON EMPLOYMENT SHOULD OF COURSE BE WEIGHED WHAT DOES MR REICH HAVE AGAINST KIDS IN SOUTHCENTRAL LA ANYWAY MOREOVER THIS REICH ADVOCACY COMES AFTER CONGRESS JUST PASSED A HUGE INCREASE IN THE EARNEDINCOMETAX CREDIT A TAX SUBSIDY FOR LOWWAGE WORKERS THIS 19 BILLION INCREASE FOLLOWING ANOTHER FAT INCREASE IN 1990 IS MAKING SOME ECONOMISTS WONDER IF THE EITC IS NOW SO LARGE THAT IT IS A DISINCENTIVE TO WORK BECAUSE THE SUBSIDY VANISHES AT HIGHER INCOMES ONLY A COUPLE YEARS AGO THE DEMOCRATIC LEADERSHIP COUNCIL ARGUED THAT THE EITC WAS A GOOD SUBSTITUTE FOR THE MINIMUM WAGE NOW THE REICH MEMO ASSERTS THAT THE EITC BURDENS THE PUBLIC SECTOR THAT IS TAXPAYERS AND SO A STRONGER MINIMUM WAGE INVOLVES THE APPROPRIATE SHARING OF THE BURDEN WITH PRIVATE EMPLOYERS IN OTHER WORDS WHAT MR REICH CAN'T TAKE FROM EMPLOYERS IN TAXES HE WANTS TO IMPOSE WITH MANDATES AS A HARVARD PROFESSOR MR REICH ADVERTISED HIMSELF AS A TRIBUNE OF WORKER SKILLS AND COMPETITIVENESS IN THE GLOBAL ECONOMY THAT ROBERT REICH MADE SENSE BUT IN WASHINGTON HE'S BECOME MR CLINTON'S MAIN ADVOCATE FOR IMPOSING EVER HIGHER BURDENS ON THE PRIVATE BUSINESSES THAT ARE THE ONLY REAL SOURCE OF THOSE JOBS AND SKILLS PERHAPS MR REICH IS FEELING THE PRESSURE OF HIS UNION CONSTITUENCY SINCE UNIONS AFTER ALL REPRESENT MAINLY THE HIGHEST PAID WORKERS OR MAYBE HE HOPES THIS WILL HELP APPEASE LABOR LEADERS UNHAPPY WITH HIS SUPPORT FOR NAFTA WHATEVER WE HOPE MR CLINTON UNDERSTANDS THE DAMAGE THE REICH PROPOSAL WOULD DO TO HIS CONSTANT CLAIMS TO SPEAK FOR SMALL BUSINESS HAVING JUST SOCKED THE MOST PRODUCTIVE SMALL BUSINESSES WITH THE BIGGEST TAX INCREASE IN DECADES HIS CREDIBILITY CAN'T AFFORD ANY MORE REICHIAN FLIP FLOPS 9308110088 930811 ENTERPRISE ENTREPRENEURS FIND PAST GLORY HARD TO REPEAT BY MELISSA LEE STAFF REPORTER OF THE WALL STREET JOURNAL ALLAN K MARKEL GOT A LOT MORE THAN HE BARGAINED FOR WHEN HE SOLD HIS CHICAGO PLUMBINGSUPPLY COMPANY AND SWITCHED TO A PETSUPPLY BUSINESS ABOUT THREE YEARS AGO MR MARKEL SAYS THAT HE SOON DEVELOPED AN ULCER AND BECAME SUICIDAL NOW HE SAYS HE MUST CONSTANTLY FEND OFF HUNGRY CREDITORS AND MAY HAVE TO DECLARE PERSONAL BANKRUPTCY BECAUSE HE GAMBLED AWAY THE BULK OF THE PROFITS FROM HIS FIRST BUSINESS ON WHAT TURNED OUT TO BE A BAD INVESTMENT EVERYTHING I'VE EVER WORKED FOR IS GOING DOWN THE TUBES LAMENTS THE 44YEAROLD ENTREPRENEUR WHO HAS SUED THE FORMER OWNER OF HIS AILING PETSUPPLY BUSINESS MR MARKEL'S SITUATION IS A CLASSIC RICHESTORAGS NIGHTMARE AN ALL TOOCOMMON OCCURENCE WHEN ENTREPRENEURS BLOW THE MONEY FROM SELLING A SUCCESSFUL VENTURE AN ITCH TO JUMP INTO BUSINESS AGAIN AND A NEED TO DEFY THE ODDS ONE MORE TIME OFTEN DRAIN THE FORTUNES OF MANY SUCCESSFUL ENTREPRENEURS ACCORDING TO LAWYERS MONEY MANAGERS AND OTHERS WITH THEIR JUDGMENT CLOUDED BY SUDDEN WEALTH PEOPLE WHO HAVE BUILT AND SOLD VALUABLE PROPERTIES BECOME EASY PREY FOR PURVEYORS OF FAILING VENTURES OR RISKY STOCK INVESTMENTS SMALLBUSINESS OWNERS' SINGLEMINDED FOCUS ON THEIR INITIAL VENTURES OFTEN GIVES THEM LITTLE TIME TO FULLY EXPLORE THE MERITS OF DIFFERENT INDUSTRIES OR INVESTMENT OPTIONS THE VAST MAJORITY ARE ENTREPRENEURS WHO FALL VICTIM TO WHAT I BELIEVE IS ONE ASPECT OF THEIR SUCCESS AND THAT IS THAT IT'S GENERALIZABLE SAYS STEVEN BERGLAS A BOSTON PSYCHOLOGIST AND SPECIALIST IN EXECUTIVE STRESS IF YOU BECOME RICH YOU OFTEN BECOME IMBUED WITH A SENSE THAT YOUR SUCCESS IS GENUINE WHEN IT IS OFTEN LUCK AND MARKET FORCES THAT SHAPE YOUR SUCCESS MR MARKEL SAYS HE MADE THE BIGGEST MISTAKE OF MY LIFE WHEN HE WANTED TO GET INTO A NEW RELATIVELY HASSLEFREE ENDEAVOR AND THOUGHT SWITCHING BUSINESSES WOULD BE EASY I THOUGHT IT WOULD BE THE SAME EXCEPT THAT INSTEAD OF SELLING PIPES AND VALVES I'D BE SELLING FISH TANKS AND DOG FOOD HE SAYS HE SAYS HE WAS APPROACHED BY BUSINESS BROKERS JUST BEFORE HE CLOSED THE SALE OF HIS SUCCESSFUL PLUMBINGSUPPLY BUSINESS IN 1990 MR MARKEL SAYS THE PREVIOUS OWNER LURED HIM WITH THE PROSPECT OF 18 MILLION IN STEADY ANNUAL SALES HE ADDS THAT HE THOROUGHLY INVESTIGATED THE BUSINESS BEFORE BUYING IT BY DISCUSSING PROJECTED SALES WITH A SALES REPRESENTATIVE FROM ONE OF THE STORE'S MAJOR SUPPLIERS FOR INSTANCE HE SAYS HE ALSO HAD AN ACCOUNTANT EXAMINE THE BOOKS AND A LAWYER SCRUTINIZE THE PROPOSED CONTRACT AND CREDIT ACCOUNTS WITHIN 60 DAYS OF SELLING HIS FIRST BUSINESS FOR ABOUT 500000 MR MARKEL HANDED OVER 400000 TO ACQUIRE THE NEW ENTERPRISE THE DEAL'S FATAL FLAW MR MARKEL SAYS HE NOW REALIZES WAS THAT HE AGREED TO THE FORMER OWNER'S REQUEST NOT TO CONTACT CUSTOMERS OR FORMER EMPLOYEES MAYBE I WAS JUST STUPID AND MAYBE I WAS TOO NAIVE MR MARKEL RECOLLECTS BUT THE GUY JUST SEEMED SO NICE AND HE WAS THE TYPE OF GUY YOU'D WANT TO BE THE GRANDFATHER OF YOUR CHILDREN MR MARKEL SAYS JUMPING INTO THE DEAL TOO SOON HAS RUINED HIS LIFE THE ENTREPRENEUR SAYS HE DISCOVERED HIS NEWLY PURCHASED BUSINESS OWED VENDORS 74000 RATHER THAN THE 4000 CLAIMED BY THE FORMER OWNER IN AN AFFIDAVIT MR MARKEL CHARGES IN A LAWSUIT AGAINST THE FORMER OWNER PAUL R LESLE THAT THE INVENTORY WAS FILLED WITH ROTTEN STALE OR OTHERWISE UNSALABLE PET SUPPLIES AND WAS WORTH NOWHERE NEAR THE 314000 HE PAID FOR IT INDEED MR MARKEL SAYS SOME OF THE PET FOOD WAS SO OLD AND INSECTLADEN THAT THE LOCAL ANTICRUELTY SOCIETY REJECTED HIS DONATION WEEKS AFTER HE BOUGHT THE BUSINESS FOUR MAJOR SUPPLIERS HALTED SHIPMENTS BECAUSE OF THE STORE'S POOR CREDIT HISTORY MR MARKEL ALLEGES IN THE SUIT FILED IN COOK COUNTY ILL CIRCUIT COURT MY BUSINESS IS IN THE TOILET MR MARKEL SAYS MR MARKEL'S LAWSUIT CHARGES MR LESLE WITH BREACH OF CONTRACT CONSUMER FRAUD AND VIOLATION OF THE DECEPTIVE TRADE PRACTICE ACT MR LESLE WHO COULDN'T BE REACHED TO COMMENT HAS COUNTERSUED ALLEGING THAT MR MARKEL FAILED TO PAY MORE THAN 300000 IN PROMISSORY NOTES RELATING TO THE SALE OF THE BUSINESS DR BERGLAS THE BOSTON PSYCHOLOGIST SAYS HE HAS SEEN ABOUT 100 CASES SIMILAR TO MR MARKEL'S SINCE 1981 WILTON H SOGG A LAWYER AT THE CLEVELAND FIRM OF HAHN LOSER & PARKS REPORTS THAT HE ALSO HAS NUMEROUS CLIENTS AFFLICTED WITH POSTPARTUM SYNDROME AS HE CALLS A COMMON ENTREPRENEURIAL PROBLEM HAVING BEEN PLAYERS AND THEN BEING ON THE SIDELINE THEY BECOME RESTLESS MR SOGG CONTINUES BEING RESTLESS THEY DO SOME STRANGE DANGEROUS THINGS IT'S KIND OF LIKE BEING IN LAS VEGAS FOUNDERS WHO CASH OUT OF THEIR SMALL BUSINESSES OFTEN FLOP AFTER SPENDING BIG CHUNKS OF THE PROCEEDS IN A TOTALLY UNRELATED FIELD NOTES JAMES L MELCHER PRESIDENT OF BALESTRA CAPITAL AN INVESTMENT ADVISORY FIRM IN NEW YORK IT IS THE RULE NOT THE EXCEPTION SAYS MR MELCHER MANY OF WHOSE CLIENTS ARE RETIRED ENTREPRENEURS AND THE SMARTER THEY ARE THE WORSE THEY DO BILL TUDOR PRESIDENT OF TUDOR PUBLISHING CO A SUCCESSFUL EDUCATIONAL SOFTWARE MAKER IN SAN DIEGO SAYS HE TOOK A SERIOUS STUMBLE WHEN HE DABBLED IN RETAILING AFTER EARNING 1 MILLION FROM THE 1983 SALE OF TUDOR SYSTEMS INC HIS FIRST SOFTWARE COMPANY HE SAYS HE INVESTED 200000 IN OUTLETS OF PROGRAM WORLD A CHAIN OF RETAIL SOFTWARE STORES THE FOLLOWING YEAR WITH TWO OTHER INVESTORS HE OPENED TWO LOCATIONS IN CHARLOTTESVILLE AND GREENSBORO NC I THOUGHT I UNDERSTOOD SOFTWARE BUT THE RETAIL SIDE OF IT IS COMPLETELY DIFFERENT MR TUDOR SAYS THE COMBINATION OF POOR LOCATIONS A PREMATURE MARKET AND HIS SALES INEXPERIENCE FORCED HIM TO CLOSE THE STORES IN 1986 AND LOSE 400000 IN THE PROCESS HE ADDS MR TUDOR'S LOSS WAS SMALL ENOUGH THAT HE RECOVERED AND HE CONTINUED TO MAKE RISKY INVESTMENTS WITH THE REMAINDER OF THE 1 MILLION EARNED FROM THE SALE OF HIS FIRST BUSINESS MR TUDOR STARTED A LEGAL SOFTWARE COMPANY EAGLE SOFTWARE THAT VENTURE ULTIMATELY SUCCEEDED HOWEVER HE LATER USED MOST OF THE 3 MILLION FROM SELLING EAGLE SOFTWARE TO BEGIN TUDOR PUBLISHING MOST ENTREPRENEURS BELIEVE THEY CAN DO ANYTHING SAYS MR TUDOR BUT FROM A PROTECTION POINT OF VIEW MY INVESTMENTS WERE NOT SAFE YOU SHOULD PEEL OFF A PART OF WHAT YOU'VE EARNED AND HAND IT OVER TO A MONEY MANAGER YET MONEY MANAGERS ALSO CAN TAKE ADVANTAGE OF A BUSINESS OWNER WITH A PILE OF SPARE CASH AND AN ITCH TO SUCCEED AGAIN ONE INVESTMENT ADVISER'S RECOMMENDATION NEARLY COST JAY LANG THOUSANDS OF DOLLARS AFTER MS LANG A COMMERCIAL REALESTATE BROKER SOLD HER BUSINESS IN 1987 SHE SAYS A FASTTALKING BROKER TRIED TO GET HER TO PURCHASE ABOUT 30000 OF AMERICA WEST SHARES FORTUNATELY THE WARWICK NY ENTREPRENEUR WAS WARY ABOUT ENTRUSTING HER SIXFIGURE FORTUNE TO JUST ANYONE SHE DECIDED NOT TO INVEST SHE LATER LEARNED THE AIRLINE COMPANY HAD FILED FOR BANKRUPTCY PROTECTION THAT SAME DAY THE BROKER WAS NEW AND WAS A REAL SALESMAN MS LANG REMEMBERS INVESTMENT ADVISERS AND LAWYERS SAY FEWER ENTREPRENEURS WOULD FALL VICTIM TO THE RICHESTORAGS SYNDROME IF THEY FIRST REVIEWED THEIR INVESTMENT IDEAS WITH SOMEONE PREFERABLY A PROFESSIONAL MONEY MANAGER THESE EXPERTS ALSO URGE BUSINESS OWNERS TO SCRUTINIZE CONTRACTS CAREFULLY WITH A LAWYER PUT A CHUNK OF THEIR MONEY IN SAFE INVESTMENTS AND THOROUGHLY RESEARCH A NEW BUSINESS OR INVESTMENT BEFORE BETTING THE RANCH ON IT 9308110087 930811 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 313 60 TO 89 DAYS 314 90 TO 119 DAYS 317 120 TO 162 DAYS 328 163 TO 179 DAYS 330 180 TO 239 DAYS 338 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 318 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 266 TWO MONTHS 268 THREE MONTHS 288 SIX MONTHS 306 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 303 ONE MONTH 308 THREE MONTHS 329 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 303 60 DAYS 305 90 DAYS 307 120 DAYS 319 150 DAYS 321 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 1/2 SIX MONTHS 3 11/16 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 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY AUGUST 9 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 318 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 696 60 DAYS 704 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 693 60 DAYS 703 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9308110086 930811 LETTERS TO THE EDITOR EDUCATIONISTS WANT TO MOLD YOUR CHILD SECRETARY OF EDUCATION RICHARD RILEY'S JULY 14 LETTER RESPONDING TO THE JUNE 22 EDITORIAL PAGE ARTICLE DELIVER US FROM CLINTON'S SCHOOLS BILL STATES CORRECTLY THAT THE BILL HAS A BIPARTISAN FOUNDATION GOALS 2000 CONTAINS ALL THE WORST PARTS OF BUSH'S AMERICA 2000 BILL THE REAL ISSUES ARE THE MUCH BROADER AND DEEPER INITIATIVES AND PHILOSOPHIES THAT HAVE SUBTLY INFILTRATED PUBLIC EDUCATION AND ARE SO MASTERFULLY DISGUISED THAT EVEN THE MOST EXPERIENCED TEACHER/EDUCATOR IS NOT AWARE OF THE DANGEROUS IMPLICATIONS OVER THE PAST 30 YEARS ELEMENTARY AND SECONDARY EDUCATION NATIONWIDE HAS TAKEN ON A NEW ORIENTATION AWAY FROM ACADEMIC SUBJECT MATTER TOWARD MENTAL HEALTH AND PERSONALITY DEVELOPMENT FREQUENTLY REFERRED TO IN PROFESSIONAL CIRCLES AS THE WHOLE CHILD CONCEPT PSYCHOLOGICAL DATA COLLECTION ON MINORS AND STORAGE OF SUCH DATA IN NONSECURE CROSSREFERENCE FACILITIES WITHOUT PRIOR NOTIFICATION OR CONSENT OF PARENTS AND GUARDIANS HAS LAUNCHED A NEW ERA IN THE DEBATE OVER PRIVACY RIGHTS WHILE UNDERMINING TRADITIONAL PARENTAL INTERESTS IN DIRECTING THE EDUCATION AND MORAL DEVELOPMENT OF THEIR CHILDREN CONCURRENTLY INCREASING NATIONALIZATION OF POLICY DEVELOPMENT AND MANAGEMENT STRUCTURE HAS DECREASED THE SIGNIFICANCE OF PUBLIC INVOLVEMENT THROUGH LOCAL SCHOOL BOARDS AND COMMUNITY ASSOCIATIONS ON AN UNPRECEDENTED SCALE EDUCATION POLICY MAKERS AT THE NATIONAL AND STATE LEVELS HAVE IN THE PAST FIVE YEARS INFUSED TRADITIONAL SUBJECTORIENTED CURRICULA WITH COURSE MATERIALS OFTEN REFERRED TO AS STRANDS INTENDED TO MOLD THE OPINIONS AND ATTITUDES OF YOUNG PEOPLE AND TO INTRODUCE CORRECTIVE STRATEGIES SOME OF THEM BORDERING ON THE SUBLIMINAL AND FRAUDULENT TO REMEDIATE THOSE VIEWPOINTS CONSIDERED INAPPROPRIATE OR OTHERWISE UNDESIRABLE BY THE BEHAVIORAL SCIENCE COMMUNITY SIMILARLY TESTING COMPANIES STAFFED PRIMARILY WITH BEHAVIORAL SCIENTISTS ARE BRINGING INTO THE CLASSROOM MASSIVE QUANTITIES OF TESTS AND SURVEYS UNDER THE LABEL ACADEMICS OR ACHIEVEMENT TESTING WHICH ARE DESIGNED INSTEAD TO ELICIT THE VIEWPOINTS OF YOUNGSTERS AND THEIR PARENTS THE SCOPE OF THIS ACTIVITY IN PUBLIC EDUCATION IS PARTICULARLY TROUBLING AS IT THREATENS ON A MASSIVE SCALE STUDENT INDIVIDUALITY AND THE CONSTITUTIONALLY PROTECTED RIGHT TO ONE'S OWN THOUGHTS AND FEELINGS IT ALSO PORTENDS A DOSSIERBUILDING CAPABILITY INDEED PUBLIC EDUCATION TODAY APPEARS TO BE DIRECTING THE BULK OF ITS ENERGIES TOWARD INTERVENTION MENTAL HEALTH AND OTHER SOCIAL SERVICES RATHER THAN DEVELOPING PROFICIENCY LITERACY OR THE TOOLS FOR FINANCIAL INDEPENDENCE THE CURRENT NATIONAL RESTRUCTURING EFFORT WHICH INCLUDES OUTCOMEBASED AND PERFORMANCEBASED EDUCATION SCHOOLBASED MANAGEMENT CHARTER SCHOOLS AND MAGNET SCHOOLS TOGETHER WITH THE INTEGRATION OF COMPUTER TECHNOLOGY PRESENTS SIGNIFICANT CHALLENGES TO STUDENTS AND PARENTS OVER WHICH THEY HAVE LOST ANY MEANINGFUL CONTROL WE WERE SHOCKED TO LEARN RECENTLY THAT SOUTH CAROLINA WHERE DICK RILEY HAS BEEN HAILED FOR HIS INNOVATIVE RESTRUCTURING OF EDUCATION HAS RANKED NEAR THE BOTTOM ON SAT SCORES FOR THE PAST THREE YEARS ARKANSAS IS ONE OF A FEW STATES THAT RANK LOWER 9308110085 930811 MARKETING & MEDIA SMALL CABLETV SYSTEMS GET MORE TIME ON RULES WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION SAID IT WILL POSTPONE ENFORCING ITS CABLETELEVISION RATE RULES FOR THE NATION'S SMALLEST CABLE SYSTEMS BUT DENIED A FARREACHING REQUEST BY CABLE OPERATORS TO STAY THE RULES FOR ALL CABLE SYSTEMS THE DECISION CAME IN RESPONSE TO INDUSTRY CONCERNS THAT SMALL OPERATORS CAN'T COMPLETE THE PAPERWORK REQUIRED UNDER THE RULES THE RULES ARE SCHEDULED TO GO INTO EFFECT SEPT 1 BUT THE COMMISSION DELAYED THEM FOR SYSTEMS WITH 1000 OR FEWER CUSTOMERS UNTIL IT REVIEWS THE COSTS AND ADMINISTRATIVE BURDENS THEY IMPOSE ON SMALL SYSTEMS THAT REVIEW IS LIKELY TO BE COMPLETED THIS FALL COMMISSIONER ERVIN DUGGAN SAID ONLY 36 OF THE NATION'S CABLE SUBSCRIBERS WILL BE AFFECTED BY THE DECISION BUT SUGGESTED THAT ANY PERMANENT STREAMLINING WE CONSIDER SHOULD PROBABLY BE NARROWLY TAILORED TO BENEFIT INDEPENDENT OPERATORS MOST PARTICULARLY THE SMALL RURAL MOMANDPOP SYSTEMS FOR WHOM THE NEW REGULATIONS MUST SEEM TO BE AN INCOMPREHENSIBLE TANGLE THE COMMISSION ALSO DECIDED TO STUDY POSSIBLE LONGERTERM CHANGES IN THE RULES THAT WOULD REDUCE THE BURDEN ON SMALL SYSTEMS AS PART OF THAT REVIEW REGULATORS ASKED FOR PUBLIC COMMENT ON WHETHER SMALL INDEPENDENT CABLE SYSTEMS SHOULD BE TREATED DIFFERENTLY FROM SMALL SYSTEMS OWNED BY COMPANIES THAT OPERATE SEVERAL SYSTEMS YESTERDAY'S POSTPONEMENT WHICH INCLUDES MULTIPLE SYSTEM OPERATORS AFFECTS ABOUT 5900 OF THE NATION'S 11000 CABLE SYSTEMS COMMISSIONER ANDREW BARRETT NOTED 9308110084 930811 WHO'S NEWS ALCO STANDARD NAMES STUART PRESIDENT CHIEF VALLEY FORGE PA JOHN E STUART WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ALCO STANDARD CORP SUCCEEDING RAY B MUNDT WHO IS RETIRING AS CHIEF EXECUTIVE MR STUART 49 YEARS OLD HAD SERVED AS PRESIDENT AND CHIEF EXECUTIVE OF THE COMPANY'S ALCO OFFICE PRODUCTS UNIT SINCE 1985 ALCO STANDARD A PAPER AND OFFICEPRODUCTS DISTRIBUTION COMPANY HAD SALES OF ABOUT 493 BILLION FOR THE YEAR ENDED SEPT 30 1992 THE SELECTION OF MR STUART TO SUCCEED MR MUNDT 65 ENDED RICHARD C GOZON'S HOPES OF BECOMING THE COMPANY'S TOP OFFICER MR GOZON 54 HAD BEEN WITH THE COMPANY FOR MORE THAN 20 YEARS AND RESIGNED YESTERDAY AS PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR FOLLOWING MR STUART'S PROMOTION THE COMPANY SAID MR GOZON WILL PURSUE OTHER INTERESTS HE COULDN'T BE REACHED FOR COMMENT 9308110083 930811 DEVIL'S CHOICE BOSNIAN MUSLIMS PRAY FOR WESTERN BOMBS BUT NOT WESTERN PEACE THEY BELIEVE PARTITION PLAN WILL END IN SLAUGHTER SAY SERBS MUST RETREAT THE DILEMMA FOR DIPLOMATS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL SRBLJANI BOSNIAHERZEGOVINA THE MUSLIM COMMANDER SCRAMBLES TO THE ATTIC OF A BURNEDOUT HOUSE AND PEEKS THROUGH A MORTAR HOLE IN THE TILED ROOF HE LOOKS TO THE SKY THE ONLY PLACE WHERE HE DOESN'T SEE SERBIAN GUNS AND SEARCHES FOR SALVATION THESE AMERICAN PLANS TO ATTACK THE SERBS BY AIR ARE EXCELLENT EXCELLENT SAYS EFREM PROSIC BUT THEY MUST NOT STOP AT SARAJEVO THEY MUST ALSO COME HERE SRBLJANI A GHOST TOWN OF CHARRED BUILDINGS SITS ON A PLATEAU OVERLOOKING THE FRONT LINE OF A WAR THAT STRETCHES 360 DEGREES AROUND THE REGION OF NORTHERN BOSNIA KNOWN AS BIHAC PRONOUNCED BEEHOTCH SOME 300000 PEOPLE 90 OF THEM MUSLIMS ARE TRAPPED IN THIS HILLY ENCLAVE 150 MILES NORTHWEST OF THE BESIEGED BOSNIAN CAPITAL OF SARAJEVO CRUELLY AND LUDICROUSLY THE UNITED NATIONS HAS DESIGNATED BIHAC AS ONE OF SIX MUSLIM SAFE HAVENS BUT EVERY NIGHT WHEN THE SUMMER HEAT COOLS THE SERBIAN GUNNERS DUG IN ONLY 400 YARDS AWAY OPEN FIRE WITH AN ARRAY OF TANKS HOWITZERS AND GRENADES RARELY FILMED BY THE WORLD'S TELEVISION CAMERAS AND SCARCELY MENTIONED BY INTERNATIONAL DIPLOMATS THE SIEGE OF BIHAC ILLUSTRATES THE BREADTH OF THE BOSNIAN CONFLICT AND THE DEPTH OF THE DILEMMA FOR US AND EUROPEAN POLICY MAKERS MEANWHILE THE SECOND WINTER OF THIS 16MONTH WAR LOOMS THREATENING AN APOCALYPTIC ESCALATION OF THE HUMAN SUFFERING EVERYONE THINKS OF AMERICA AS THE DEFENDER OF THE WORLD THE POOR THE SICK THE CHILDREN SAYS FRANJO KOLIC WHO USED TO WORK IN A TEXTILE FACTORY UNTIL SERBS OVERRAN HIS VILLAGE AND HE FLED TO BIHAC AMERICA WON'T BE AMERICA IF IT DOESN'T DO ANYTHING TO STOP THIS BUT THE VIEW FROM BIHAC STARING DOWN THE BARRELS OF SERBIAN GUNS IS THAT LIMITED AIR STRIKES AROUND SARAJEVO WITH THE PURPOSE OF DRIVING THE SERBS TO PEACE TALKS WON'T DO MUCH TO ALTER BIHAC'S FATE FOR AT THE NEGOTIATING TABLE THE RESIDENTS OF BIHAC AND MOST BOSNIAN MUSLIMS ALSO SUFFER UN AND EUROPEAN COMMUNITY MEDIATORS CURRENTLY ARE PRESSING THE WARRING SIDES TO ACCEPT AN ETHNIC PARTITIONING OF BOSNIA WHICH LEGITIMIZES ETHNIC CLEANSING AND PUSHES THE MUSLIMS INTO ISOLATED POCKETS LIKE BIHAC WHERE THEY WOULD REMAIN AT THE MERCY OF NATIONALIST PASSIONS INSTEAD WHEN THE PEOPLE HERE LOOK HEAVENWARD THEY WISH FOR MORE COMPREHENSIVE AIR STRIKES FOLLOWED BY A LIFTING OF THE INTERNATIONAL ARMS EMBARGO AGAINST THE MUSLIMS TO ROLL BACK SERB GAINS AND TO PRESERVE A UNIFIED BOSNIA THE COUNTRY THAT THE UN RECOGNIZED MORE THAN A YEAR AGO THEY BELIEVE THEY WILL BE SAVED ONLY WHEN THE SERBS COME TO THE NEGOTIATING TABLE AS THE VANQUISHED RATHER THAN THE VICTORS IT IS VERY SIMPLE SAYS RAMIZ DREKOVIC THE BLUNT COMMANDER OF THE FIFTH CORPS OF THE BOSNIAN ARMY WHOSE 25000 SOLDIERS ARE THE SOLE DEFENDERS OF BIHAC FOR BOSNIA THERE CAN BE NO PEACE WITHOUT A MILITARY SOLUTION SO FAR MOST WESTERN LEADERS HAVE REFUSED TO EVEN CONSIDER SUCH SWEEPING MILITARY INTERVENTION FEARING THAT THE US AND EUROPE WILL BECOME BOGGED DOWN IN THE OFTCITED BALKAN QUAGMIRE EVEN THE CURRENT STRATEGY OF AIR STRIKES APPROVED MONDAY BY OFFICIALS OF THE NORTH ATLANTIC TREATY ORGANIZATION DOESN'T GO THAT FAR BUT IRONICALLY A PEACE BASED ON PARTITION MAY BRING THE WEST THE VERY QUAGMIRE IT HAS SO STUDIOUSLY AVOIDED A PARTITIONED PEACE WITH THE SERBS GETTING THE LION'S SHARE OF BOSNIA WILL LIKELY BE NO PEACE AT ALL THE UN HAS ALREADY PLEDGED TENS OF THOUSANDS OF TROOPS INCLUDING AMERICAN SOLDIERS TO ENFORCE A NEGOTIATED SETTLEMENT THEY WILL BE DEPLOYED IN THE RUGGED MOUNTAINS AND FORESTED VALLEYS OF BOSNIA TO STAND PRECARIOUSLY BETWEEN THE SERBS MUSLIMS AND CROATS JUST AS IN NEIGHBORING CROATIA WHERE UN TROOPS HAVE BEEN UNABLE TO PREVENT SERBS AND CROATS FROM REIGNITING THEIR WAR THE PRESENCE OF PEACEKEEPERS WILL DO LITTLE TO SMOTHER BOSNIA'S RAGING ETHNIC HATREDS THE DEVIL'S CHOICE FOR THE WEST BOMB OR NEGOTIATE IS COMPLICATED BY THE SERBS' MASTERFUL GAME OF CHEATANDRETREAT THAT PREYS ON THE DEMOCRATIC SQUABBLING OF THE UN AND NATO THE CLINTON ADMINISTRATION DREW UP PLANS FOR AIR STRIKES AND A LIFTING OF THE ARMS EMBARGO IN MAY FOLLOWING A BLOODY SERB OFFENSIVE IN EASTERN BOSNIA BUT AFTER CONSOLIDATING THEIR GAINS THE SERBS SHOWED UP AT THE NEGOTIATING TABLE AND SIGNED A UN PEACE ACCORD IN ATHENS WESTERN EUROPEAN LEADERS AFRAID TO ANGER THE SERBS REJECTED WASHINGTON'S ACTION PLAN WEEKS LATER THE SERBS DUMPED THE PEACE ACCORD AND RESUMED THE MILITARY OFFENSIVE LAST WEEK WASHINGTON AGAIN SAID IT WAS READY TO ORDER AIR STRIKES AGAINST SERB POSITIONS TO BREAK THE SIEGE OF SARAJEVO THE SERBS PROCEEDED SIMULTANEOUSLY TO SIGN A CEASEFIRE AND TO LAUNCH AN ALLOUT PUSH TO CAPTURE THE MUSLIMS' LAST TWO MOUNTAIN POSITIONS OVERLOOKING THE BOSNIAN CAPITAL ONCE THEY SUCCEEDED THE SERBS PROMISED TO HAND OVER CONTROL OF THE MOUNTAINS TO THE UN A CHORUS OF INTERNATIONAL DIPLOMATS IMMEDIATELY URGED THE US TO BACK OFF AIR STRIKES IN FAVOR OF NEGOTIATIONS AND THE SERBS ONCE AGAIN STARTED BACKPEDALING FROM THEIR PROMISE TO WITHDRAW YESTERDAY AFTER DAYS OF TORTUOUS NEGOTIATIONS THE SERBS COMPLETED A WITHDRAWAL FROM ONE OF THE MOUNTAINS BUT SAID THEY WOULDN'T LEAVE A SECOND MORE STRATEGICALLY IMPORTANT PEAK UNTIL THE UN MUSTERED ENOUGH TROOPS TO ENSURE THAT THE MUSLIMS DON'T RETAKE THE POSITION MEANWHILE AS NATO FINETUNED PLANS FOR AIR STRIKES DIPLOMATS IN GENEVA TRIED TO REVIVE THE STALLED PEACE TALKS WHILE THE RESIDENTS OF BIHAC ARE ACHINGLY TIRED OF WAR THEY FEAR THAT ETHNIC PARTITIONING WOULD BE THEIR DEATH SENTENCE NEARLY ALL THE MAPS CURRENTLY ON THE NEGOTIATING TABLE HAVE BIHAC CONNECTED TO OTHER MUSLIM AREAS OF BOSNIA BY UNGUARDED ROAD CORRIDORS THAT WILL BE EASY TARGETS FOR AMBUSH IF SO BIHAC WOULD FOREVER BE HOSTAGE TO THE ENCOMPASSING SERBS BOSNIAN SERBS SQUEEZING IN FROM THE SOUTH AND EAST CROATIAN SERBS OCCUPYING PARTS OF CROATIA PINCHING IN FROM THE NORTH AND WEST IF ANY PEACE LEAVES OPEN THE POSSIBILITY OF A GREATER SERBIA OR THE UNIFICATION OF ALL SERBIAN PEOPLE AND TERRITORIES IN THE FORMER YUGOSLAVIA BIHAC RESIDENTS SAY IT WOULD BE ONLY A MATTER OF TIME BEFORE THEY ARE CLEANSED THUS A NIGHTMARE OF IMPENDING SLAUGHTER INTERRUPTS THEIR DREAMS OF PEACE MY GREATEST DESIRE IS THAT THE WAR ENDS AND THAT I DIE A NATURAL DEATH AND NOT BE KILLED BY A GRENADE SAYS MR KOLIC THE 42YEAROLD REFUGEE BUT IF PARTITION LEAVES HIS VILLAGE UNDER SERB CONTROL AND PREVENTS HIM FROM RETURNING HOME SUCH A LIFE WOULD HARDLY BE WORTH LIVING HE ADDS THE GREATEST MISTAKE WE COULD EVER MAKE IS IF BOSNIA IS DIVIDED ALONG ETHNIC LINES HE SAYS WHILE SITTING ON A PARK BENCH ON THE BANKS OF THE UNA RIVER PEOPLE WILL ALWAYS BE TRYING TO GO BACK HOME A JUST AND HONORABLE END TO THE WAR IS IF REFUGEES CAN GO BACK TO THEIR HOUSES THREE HUNDRED YARDS FROM THE FRONT LINE PARTIALLY SHIELDED BY A ROCKY PLATEAU THE BIHAC BREWERY FILLS 60000 BOTTLES A DAY WITH A BITTER SUDSY BREW DESPITE TAKING A TOTAL OF 34 MORTAR AND TANK HITS IN THE PAST SEVERAL MONTHS WHERE THERE'S A WILL THERE'S A WAY WINKS ADEM IBRAHIMPASIC THE MUSLIM MANAGER OF THE BREWERY IF WE HAVE PEACE WE HAVE A CHANCE TO SURVIVE IF THERE IS MORE WAR WE ARE FINISHED AND MORE WAR HE IS SURE WILL COME WITH ETHNIC PARTITIONING THE PEOPLE IN GENEVA SITE OF THE PEACE TALKS BELIEVE THEY CAN MAKE AN ETHNIC DIVISION BUT THEY ARE CAUSING GREAT AND HORRIBLE TRAGEDIES SAYS MR IBRAHIMPASIC WHO DISPLAYS MORTAR SHELLS AND SHRAPNEL FRAGMENTS IN HIS OFFICE LIKE OTHER BREWERY MANAGERS WOULD DISPLAY BEER MUGS IF THE SERBS THINK THEY CAN STILL HAVE A GREATER SERBIA THEY WILL EVENTUALLY GET TO US EITHER THEY'LL KILL US OR WE'LL KILL THEM WHILE MOST OTHER OFFICES ACROSS THE FORMER YUGOSLAVIA HAVE BEEN CLEANSED OF THE ONCEOBLIGATORY PORTRAITS OF MARSHAL TITO THE DICTATOR'S STERN FACE STILL LOOKS DOWN FROM BEHIND MR IBRAHIMPASIC'S DESK A REMINDER OF FAILED DREAMS OF A MULTIETHNIC YUGOSLAVIA WHEN TITO WAS IN POWER IF YOU WERE A NATIONALIST YOU WERE THROUGH HE SAYS DRAWING A FINGER ACROSS HIS THROAT HE THOUGHT THAT WOULD EXTINGUISH NATIONALISM BUT HE DIDN'T DO IT WELL ENOUGH PERHAPS IF HE HAD A THIRD GENERATION HE MIGHT HAVE SUCCEEDED WE'LL HAVE TO GO THROUGH THREE GENERATIONS TO FORGET ABOUT THIS WAR THE FACT THAT A MUSLIM WOULD RUN A BREWERY AND ROBUSTLY CONSUME ITS PRODUCT INDICATES THAT THE MUSLIMS OF BOSNIA ARE GENERALLY SECULARMINDED AND NOT THE FUNDAMENTALIST ZEALOTS THE SERBS PORTRAY THEM TO BE BUT THE CONTINUED PRESSURE OF WAR IS SHARPENING THEIR MUSLIM IDENTITY WE WILL FIGHT FOREVER VOWS IMAM HADZJ BALTIC THE LEADING MUSLIM CLERIC IN THE BIHAC REGION WHO INSISTS THAT THE YEARNING OF MUSLIM REFUGEES TO RECLAIM THEIR HOMES AND MOSQUES WON'T BE QUASHED BY PARTITION FROM THE BEGINNING THE PLAN OF THE SERBS HAS BEEN TO MAKE US THE PALESTINIANS OF EUROPE IN THE SAME WAY THAT THE PALESTINIANS HAVE BEEN FIGHTING FOR THEIR HOMELAND SO WILL WE THE IMAM FIXES A FOREIGN VISITOR WITH A STARE AND SAYS DARKLY I HOPE THE WORLD RECOGNIZES THE ANARCHY THAT IS BEING CREATED BY THE WAR SUCH ANARCHY SAYS EJUB TOPIC AN ELECTRICAL ENGINEER WHO HEADS THE BIHAC GOVERNMENT WOULD MAKE ENFORCEMENT OF ANY PEACE PLAN PERILOUS AT BEST TURNING THE MUSLIM AREAS INTO UN PROTECTORATES HE SAYS WOULD BE LIKE GIVING TRANSFUSIONS TO A DEAD MAN THE INTERNATIONAL COMMUNITY WOULD PAY A HIGH PRICE IN THE LIVES OF PEACEKEEPERS AT THE MOMENT BIHAC'S 150 MILES OF BORDER ARE PATROLLED BY A 1500 STRONG BATTALION OF FRENCH SOLDIERS AND ANOTHER UN BATTALION IS SUPPOSED TO BE ON ITS WAY BUT THEY HAVEN'T MADE LIVING CONDITIONS ANY SAFER WE MUST RELY ON OUR OWN DEFENSE SAYS MR TOPIC WHOSE DESK SITS BEHIND A PILE OF SANDBAGS AND A CLOTH SCREEN TO PROTECT HIM FROM SHRAPNEL AND FLYING GLASS BIHAC HAS MAINLY SURVIVED ITS 14 MONTHS OF SIEGE BY CUTTING DEALS WITH CROATIAN SERBS TO SMUGGLE IN BLACKMARKET GOODS A CARTON OF MARLBORO CIGARETTES CAN COST 60 DOLLARS A GALLON OF GASOLINE 40 BARTER TRADE HAS BEEN STANDARD PRACTICE SINCE SUPPLIES OF THE BOSNIAN DINAR RAN OUT MONTHS AGO SOLDIERS AND GOVERNMENT EMPLOYEES ARE PAID IN EITHER FOREIGN CURRENCY THE REGION HAS HOARDED ITS PREWAR RESERVES OR IN BAGS OF GRAIN SOON WE WILL BE BACK IN THE MIDDLE AGES WHERE THERE WAS NO MONEY MR TOPIC DESPAIRS LOCAL FARMERS DESPERATE FOR FERTILIZER AND FUEL PRODUCE ONEQUARTER OF THE REGION'S FOOD NEEDS THE REST COMES FROM INTERNATIONAL HUMANITARIAN ORGANIZATIONS ONLY GOVERNMENT SERVICES THE HOSPITAL AND THE BREWERY HAVE ELECTRICITY AND THEN ONLY FOR SEVERAL HOURS A DAY HORSEDRAWN WAGONS SHUTTLE BETWEEN THE FORESTS AND THE VILLAGES DELIVERING WOOD FOR COOKING AND HEATING WE ARE DESTROYING OUR FORESTS MOANS MR TOPIC BUT WHAT CAN WE DO THAT IS WAR THE FIFTH CORPS HAS 25000 SOLDIERS AND BARELY THAT MANY GUNS UP ON THE SRBLJANI PLATEAU HOWITZER SHELLS CAPTURED FROM THE SERBS AT THE BEGINNING OF THE WAR ARE STACKED IN A NEGLECTED PILE THE MUSLIMS DON'T HAVE ANY HOWITZERS FROM WHICH TO SHOOT THEM WE HAVE TO WAIT UNTIL THE SERBS COME WITHIN RIFLE RANGE 200 YARDS BEFORE WE CAN SHOOT AT THEM WHILE THEY CAN HIT US FROM THREE MILES AWAY GRUMBLES MR PROSIC THE MUSLIM COMMANDER WE'VE BEEN DOING THIS FOR A YEAR NOW I DON'T KNOW HOW MUCH LONGER I CAN HOLD OUT HERE HE DASHES FROM ONE BOMBEDOUT HOUSE TO ANOTHER SCURRYING TO STAY OUT OF SERB SNIPER SIGHTS SALVATION HE THOUGHT WAS ON ITS WAY IN APRIL WHEN WASHINGTON FIRST PROMOTED AIR STRIKES NOW PUFFING TO CATCH HIS BREATH HE LOOKS SKYWARD AND AGAIN WAITS FOR DELIVERANCE FROM WESTERN PLANES AMERICA HE SAYS HOPEFULLY WON'T BREAK ITS PROMISE TWICE 9308110081 930811 WHO'S NEWS SCHERINGPLOUGH HIRES MERCK'S CECIL PICKETT FOR RESEARCH POSITION MADISON NJ SCHERINGPLOUGH CORP SAID IT LURED A RESEARCH EXECUTIVE AWAY FROM COMPETITOR MERCK & CO CECIL B PICKETT FORMERLY SENIOR VICE PRESIDENT OF BASIC RESEARCH AT MERCK RESEARCH LABS IN MONTREAL WAS APPOINTED EXECUTIVE VICE PRESIDENT IN CHARGE OF RESEARCH AT SCHERINGPLOUGH'S PHARMACEUTICAL RESEARCH ARM THE APPOINTMENT TAKES EFFECT SEPT 1 MR PICKETT 47 YEARS OLD SUCCEEDS FJ BULLOCK SENIOR VICE PRESIDENT OF RESEARCH OPERATIONS MR BULLOCK 56 IS TAKING EARLY RETIREMENT A SPOKESMAN SAID SCHERINGPLOUGH'S OVERALL 1993 RESEARCH BUDGET IS EXPECTED TO APPROACH 600 MILLION BUT HAD NO BREAKDOWN FOR THE PHARMACEUTICAL RESEARCH ORGANIZATION KNOWN AS SCHERINGPLOUGH RESEARCH INSTITUTE MR PICKETT WAS VACATIONING AND COULDN'T BE REACHED FOR COMMENT ON WHY HE LEFT MERCK WHERE HE HAD WORKED SINCE 1978 HE WAS APPOINTED TO HIS MOST RECENT POSITION THERE IN JANUARY AND PREVIOUSLY WAS VICE PRESIDENT OF THE MERCK FROSST CENTER FOR THERAPEUTIC RESEARCH IN MONTREAL A MERCK SPOKESMAN SAID THE COMPANY HAD NO COMMENT ON MR PICKETT'S DEPARTURE 9308110080 930811 US IS INVESTIGATING IMPROPER WITHDRAWALS AT CHEMICAL ATMS NEW YORK THE US SECRET SERVICE IS INVESTIGATING HOW SOME CHEMICAL BANKING CORP CUSTOMERS WITHDREW 357000 FROM AUTOMATIC TELLER MACHINES WITHOUT THEIR ACCOUNTS BEING CHARGED THE EPISODE IS THE LATEST PROBLEM TO AFFLICT CHEMICAL'S ATM MACHINES SINCE THE MERGER WITH MANUFACTURERS HANOVER ON APRIL 19 THE MATTER WAS FIRST REPORTED IN AMERICAN BANKER A TRADE PUBLICATION BECAUSE OF A COMPUTER GLITCH NEW CUSTOMERS WITH TEMPORARY ATM CARDS COULD GET CREDIT CARD CASH ADVANCES EVEN IF THEY DIDN'T HAVE A CREDIT CARD ACCOUNT SOME 974 TRANSACTIONS OCCURRED OVER A TWOWEEK PERIOD BEGINNING MAY 11 THE DAY MANUFACTURERS HANOVER LINKED ITS SYSTEM WITH CHEMICAL'S SOME OF THE TRANSACTIONS MIGHT HAVE BEEN HONEST MISTAKES BUT PEOPLE CLOSE TO CHEMICAL SAID IT APPEARS THAT MOST OF THE WITHDRAWALS WERE MADE WITH THE AIM OF STEALING CHEMICAL EXPECTS TO RECOVER MOST OF THE MONEY BECAUSE IT HAS RECORDS OF THE TRANSACTIONS AND VIDEOTAPES OF THE PEOPLE WITHDRAWING THE MONEY THE POTENTIAL LOSS IF ANY WILL NOT BE MATERIAL A CHEMICAL SPOKESMAN SAID CHEMICAL HAS HAD OTHER PROBLEMS WITH ITS ATMS IN RECENT MONTHS CHEMICAL ATMS HAVE BEEN OUT OF OPERATION MORE FREQUENTLY THAN BEFORE THE MERGER OFTEN MAKING IT DIFFICULT FOR CUSTOMERS TO WITHDRAW MONEY OR GET INFORMATION ON THEIR ACCOUNTS 9308110079 930811 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 AETNA LIFE & CASUALTY CO 400 MILLION TWOPART ISSUE OF DEBT PRICED BY UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST TRANCHE 200 MILLION OF NOTES DUE AUG 15 2003 WAS PRICED AS 6375S AT 99308 TO YIELD 647 THE NOTES WERE PRICED AT A SPREAD OF 70 BASIS POINTS ABOVE WHENISSUED TREASURYS THE SECOND TRANCHE 200 MILLION OF DEBENTURES DUE AUG 15 2023 WAS PRICED AS 725S AT 99974 TO YIELD 7252 THE DEBENTURES WERE PRICED AT A SPREAD OF 80 BASIS POINTS ABOVE TREASURYS BOTH PARTS ARE NONCALLABLE AND ARE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP CHASE MANHATTAN CORP 200 MILLION OF SUBORDINATED NOTES DUE AUG 15 2008 PRICED AS 675S AT 9958 TO YIELD 6795 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 103 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS CITICORP 350 MILLION OF SUBORDINATED NOTES DUE AUG 15 2005 PRICED AT PAR TO YIELD 675 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 98 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DOW CHEMICAL CO 150 MILLION OF DEBENTURES DUE AUG 15 2013 PRICED AS 685S AT 995 TO YIELD 6896 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 50 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DUKE POWER CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY KIDDER PEABODY & CO IT WAS REOFFERED AS 6875 AT 97125 TO YIELD 7108 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 71 BASIS POINTS ABOVE WHENISSUED TREASURYS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP MEDIUMTERM NOTES DUE AUG 25 1998 PRICED AT PAR TO YIELD 425 ACCORDING TO MCM CORPORATEWATCH THE NOTES WHICH ARE CALLABLE AFTER ONE YEAR WERE PRICED AT A SPREAD OF 30 BASIS POINTS ABOVE TREASURYS THE COUPON INCREASES TO 577 AFTER ONE YEAR THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO KANSALLISOSAKEPANKKI 200 MILLION OF SENIOR NOTES DUE AUG 15 2000 PRICED AS 6375S AT 99804 TO YIELD 641 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 100 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS OUTDOOR SYSTEMS INC 115 MILLION OF SENIOR NOTES DUE AUG 15 2003 PRICED AT PAR TO YIELD 1075 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR FIVE YEARS WERE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO VIRGINIA ELECTRIC & POWER CO 100 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 1 2001 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MERRILL LYNCH & CO IT WAS REOFFERED AT PAR TO YIELD 6 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE COMPARABLE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P VIRGINIA ELECTRIC IS A UNIT OF DOMINION RESOURCES INC VIRGINIA ELECTRIC & POWER CO 100 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE AUG 18 2002 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MORGAN STANLEY & CO IT WAS REOFFERED AS 6S AT 99197 TO YIELD 6117 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 37 BASIS POINTS ABOVE COMPARABLE TREASURYS THE OFFERING IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P WESTCOAST ENERGY INC 150 MILLION CANADIAN DOLLARS US1161 MILLION PRINCIPAL AMOUNT OF 85 DEBENTURES MATURING SEPT 4 2018 SOLD THROUGH A GROUP OF UNDERWRITERS LED BY RBC DOMINION SECURITIES INC OF TORONTO WESTCOAST A VANCOUVER BRITISH COLUMBIA PIPELINE AND GASDISTRIBUTION UTILITY SAID THE ISSUE WAS SOLD AT C9990 US7732 AND THAT IT EXPECTS TO RECEIVE PROCEEDS OF C1485 MILLION BEFORE EXPENSES FROM THE SALE CENCALL COMMUNICATIONS CORP INITIAL OFFERING OF 48 MILLION COMMON SHARES PRICED AT 19 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO IMAGE INDUSTRIES INC INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MGM GRAND INC 17 MILLION COMMON SHARES PRICED AT 3775 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO PENNCORP FINANCIAL GROUP INCSIX MILLION COMMON SHARES PRICED AT 18 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY SHEARSON PENNSYLVANIA POWER & LIGHT CO 115 MILLION SINKING FUND PREFERRED STOCK DUE AUG 2008 WITH A 1425 YEAR AVERAGE LIFE AND A 6125 DIVIDEND YIELD PRICED AT 100 A SHARE TO BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH TRIANGLE PACIFIC CORP INITIAL OFFERING OF 6960000 COMMON SHARES PRICED AT 10 APIECE THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP HILLSBOROUGH COUNTY FLA 1398 MILLION SERIES 1993 CAPITALIMPROVEMENT PROGRAM REFUNDING REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 52698 YIELDS RANGE FROM 26 IN 1994 TO 55 IN 2016 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P NEW YORK CITY 1543 MILLION FISCAL 1994 SERIES B GENERALOBLIGATION BONDS PRICED BY A GRIGSBY BRANDFORD & CO GROUP YIELDS RANGE FROM 365 IN 1995 TO 575 IN 2006 AND 2007 THE BONDS ARE PART OF AN ISSUE THAT INCLUDES 300 MILLION OF FIXEDRATE BONDS NEW YORK CITY'S GENERALOBLIGATION BONDS HAVE A BAA1 RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P NEW YORK CITY 1457 MILLION FISCAL 1994 SERIES B GENERALOBLIGATION BONDS PRICED BY A PRYOR MCCLENDON COUNTS & CO GROUP THE BONDS ARE PART OF AN ISSUE THAT TOTALS 300 MILLION YIELDS FOR THE BONDS RANGE FROM 58 IN 2008 AND 2009 TO 59 IN 20132016 THE BREAKDOWN OF THE BONDS IS AS FOLLOWS GROUP A INCLUDES 575S PRICED TO YIELD 58 IN 2008 AND 2009 GROUP B INCLUDES BONDS DUE IN 2010 WHICH AREN'T FORMALLY REOFFERED TO INVESTORS THERE ARE ALSO 575S PRICED TO YIELD 585 IN 2011 AND 2012 GROUP C INCLUDES 575S PRICED TO YIELD 59 IN 20132016 BONDS DUE IN 2017 AREN'T FORMALLY REOFFERED TO INVESTORS NEW YORK CITY'S GENERALOBLIGATION BONDS CURRENTLY HAVE A BAA1 RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P REGIONAL AIRPORT AUTHORITY OF LOUISVILLE & JEFFERSON COUNTY KY 2386 MILLION 1993 SERIES A SERIES B AND SERIES C AIRPORT SYSTEM REVENUE BONDS PRICED BY A SMITH BARNEY SHEARSON GROUP OVERALL YIELDS RANGE FROM 285 IN 1994 TO 577 IN 2023 THE 244 MILLION SERIES A BONDS ARE PRICED TO YIELD FROM 285 IN 1994 TO 56 IN 2013 THE 87 MILLION SERIES B BONDS ARE PRICED TO YIELD FROM 43 IN 1998 TO 562 IN 2023 THE 2054 MILLION SERIES C BONDS WHICH ARE SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX ARE PRICED TO YIELD FROM 3 IN 1994 TO 577 IN 2023 ALL OF THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P VIRGINIA COMMONWEALTH TRANSPORTATION BOARD 135 MILLION SERIES 1993C TRANSPORTATION REVENUE BONDS PRICED BY A LEHMAN BROTHERS GROUP THE OFFERING WHICH WAS PRICED TO YIELD FROM 33 IN 1995 TO 557 IN 2015 IS FOR THE NORTHERN VIRGINIA TRANSPORTATION DISTRICT PROGRAM BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993175 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 178 MONTHS COMMERZBANK OVERSEAS FINANCE BV GERMAN PARENT 500 MILLION MARKS OF 6 EUROBONDS DUE SEPT 19 1998 AT ISSUE PRICE 1012 VIA COMMERZBANK AG BONDS YIELD 619 AT 992 COMANAGERS' BREAKEVEN PRICE A MARGIN OF 28 BASIS POINTS ABOVE NO 105 BUNDESOBLIGATION GUARANTOR COMMERZBANK AG FEES TWO POINTS FINANCE FOR DANISH INDUSTRY AS DANISH AGENCY 300 MILLION DANISH KRONER OF 6625 EUROBONDS DUE SEPT 9 1998 AT ISSUE PRICE 10202 VIA CHEMICAL INVESTMENT BANK LTD REOFFERED AT 100395 TO YIELD 653 FEES 1875 POINTS FIRST 2 PLC SPECIALPURPOSE VEHICLE 190 MILLION OF ASSETBACKED FLOATINGRATE EURONOTES IN TWO TRANCHES DUE JULY 2005 VIA BARING BROTHERS & CO BONDS SECURED ON POOL OF 190 MILLION OF FULLY PERFORMING UNSECURED CONSUMERREPAYMENT LOANS IN THE UK ORIGINATED BY FIRST NATIONAL BANK PLC TRUSTEE FOR ISSUE CHASE MANHATTAN TRUSTEES LTD SENIOR TRANCHE FOR 170 MILLION OF NOTES AT ISSUE PRICE PAR INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE PLUS 50 BASIS POINTS TO JULY 1998 RISING TO LIBOR PLUS 100 POINTS THEREAFTER REOFFERED AT 9983 TO YIELD LIBOR PLUS 55 BASIS POINTS TO JULY 1998 BONDS CALLABLE JULY 1998 AND ANNUALLY THEREAFTER AT PAR AVERAGE LIFE 397 YEARS FEES 035 POINT SUBORDINATED TRANCHE FOR 20 MILLION OF PRIVATELY PLACED NOTES AVERAGE LIFE FIVE YEARS TERMS UNDISCLOSED KANAMOTO CO JAPAN 60 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE AUG 26 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 0875 COUPON AT PAR VIA YAMAICHI BANK SWITZERLAND WARRANTS EXERCISABLE FROM SEPT 16 1993 TO AUG 19 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED AUG 16 FEES 1625 POINTS PRIMARY INDUSTRY BANK OF AUSTRALIA LTD AUSTRALIA 50 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE SEPT 21 1998 AT ISSUE PRICE 10125 VIA HAMBROS BANK LTD BONDS YIELD 715 AT 99375 BREAKEVEN PRICE FOR COMANAGERS FEES TWO POINTS LESS 0125 POINT FOR LEAD MANAGER 9308110078 930811 DIVIDEND NEWS CHEMICAL WASTE MANAGEMENT INC CHEMICAL WASTE MANAGEMENT INC OAK BROOK ILL SAID IT SUSPENDED PAYMENT OF ITS QUARTERLY INDEFINITELY BECAUSE OF WHAT IT CALLED CURRENT UNCERTAIN MARKET CONDITIONS IN THE HAZARDOUSWASTESERVICES INDUSTRY THE COMPANY'S LAST PAYOUT WAS FIVE CENTS A SHARE PAID JULY 1 COMPANY EARNINGS HAVE BEEN UNDER PRESSURE FROM DECLINING VOLUME RECENTLY AND THE COMPANY DISCLOSED LAST MONTH THAT WITH NO SIGNS OF INDUSTRY IMPROVEMENT IT MAY TAKE A CHARGE TO WRITE DOWN THE VALUE OF SOME OF ITS HAZARDOUSWASTEHANDLING ASSETS THE SUSPENSION OF THE DIVIDEND WAS MADE AFTER THE MARKET'S CLOSE YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING CHEMWASTE SHARES ROSE 125 CENTS TO 975 9308110077 930811 RETAILER 2NDPERIOD RESULTS ARE MIXED WITH WALMART POSTING 18 PROFIT RISE A WALL STREET JOURNAL NEWS ROUNDUP FIVE RETAILERS REPORTED MIXED RESULTS FOR THE SECOND QUARTER ENDED JULY 31 WITH WALMART STORES INC CONTINUING TO DO WELL DESPITE SAGGING CONSUMER CONFIDENCE WALMART WHICH BENEFITED FROM CAUTIOUS CONSUMERS SEEKING BARGAINS IN THE FACE OF THE WEAK ECONOMY SAID NET INCOME ROSE 18 BUT DEPARTMENT STORES AND SPECIALTY STORES WERE HURT BY GENERALLY WEAK APPAREL SALES DILLARD DEPARTMENT STORES INC'S PROFIT CLIMBED 76 LESS THAN ANALYSTS EXPECTED ANNTAYLOR STORES CORP REPORTED A LOSS BECAUSE OF REFINANCING COSTS BUT OPERATING EARNINGS SHOWED SIGNIFICANT IMPROVEMENT LIMITED INC'S EARNINGS FELL 15 WHILE NORDSTROM INC PROFIT ROSE 24 DILLARD SHARES FELL SHARPLY ON THE NEWS DECLINING 2375 OR 64 TO CLOSE AT 35 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALSO ON THE NEW YORK STOCK EXCHANGE LIMITED CLOSED DOWN 375 CENTS AT 21 ANNTAYLOR SHARES TRADED AS HIGH AS 30 BEFORE CLOSING AT 28125 DOWN 625 CENTS AND WALMART SHARES EASED 50 CENTS TO CLOSE AT 25 IN NATIONAL OVERTHECOUNTER TRADING NORDSTROM FELL 50 CENTS TO 2775 REVENUE CLIMBED 25 TO 1639 BILLION FROM 1315 BILLION A YEAR EARLIER THAT INCLUDED 1624 BILLION IN SALES COMPARED WITH 1303 BILLION A YEAR AGO REVENUE AND EARNINGS WERE IN LINE WITH ANALYSTS' EXPECTATIONS STORES OPEN AT LEAST A YEAR SHOWED AN 8 SALES GAIN THE COMPANY SAID SINCE RISING A MODEST 3 IN THE FIRST QUARTER BECAUSE OF BAD WEATHER WALMART'S SAMESTORE SALES HAVE STEADILY IMPROVED ANALYSTS SAID THE NATION'S LARGEST RETAILER CONTINUES TO BENEFIT FROM CONSUMER CAUTION WALMART ALSO CONTROLLED COSTS BY MAINTAINING TIGHT INVENTORY CONTROLS FIRSTHALF REVENUE GAINED 22 TO 3046 BILLION FROM 249 BILLION A YEAR EARLIER SALES GREW TO 3016 BILLION FROM 2468 BILLION DAVID GLASS PRESIDENT AND CHIEF EXECUTIVE SAID THE COMPANY REMAINS ON TRACK TO REACH PROJECTED SALES FOR THE YEAR OF 68 BILLION TO 69 BILLION THE COLUMBUS OHIO APPAREL RETAILER BLAMED ITS EARNINGS DECLINE ON HEAVY MARKDOWNS OF SPRING AND SUMMER MERCHANDISE SALES ROSE 13 TO 169 BILLION FROM 149 BILLION LESLIE H WEXNER CHAIRMAN AND CHIEF EXECUTIVE CALLED THE RESULTS DISAPPOINTING I DO NOT ACCEPT EXTERNAL CAUSES AS AN EXCUSE FOR OUR SUBSTANDARD PERFORMANCE HE SAID TO GET INVENTORIES IN SHAPE FOR THE FALL WE HAVE BEEN PROMOTIONAL ACROSS ALL THE BUSINESSES WHICH I BELIEVE WAS THE CORRECT ACTION HE SAID LIMITED'S RESULTS WERE WITHIN ANALYSTS' EXPECTATIONS THE EARNINGS DROP REFLECTS AN AGGRESSIVE CLEANOUT AFTER A POOR SPRING SELLING SEASON SAID CJ LAWRENCE INC'S JEFFREY EDELMAN WITHIN THAT FRAMEWORK IT IS BETTER AT THIS POINT FOR LIMITED DIVISIONS TO TAKE THEIR LUMPS WITH THE MARKDOWNS SO THEY'LL BE READY FOR FALL CONTINUING ITS REBOUND THE WOMEN'S APPAREL RETAILER REPORTED A SIGNIFICANT JUMP IN OPERATING PROFIT ALTHOUGH CHARGES RELATED TO A RECENT DEBT REFINANCING LED TO A LOSS ANNTAYLOR'S DEBT REFINANCING RESULTED IN A CHARGE OF 105 MILLION OR 47 CENTS A SHARE IN THE QUARTER EXCLUDING THE CHARGE THE COMPANY EARNED 36 MILLION OR 16 CENTS A SHARE MR EDELMAN OF CJ LAWRENCE NOTED THAT ANNTAYLOR HAS SEEN STEADY IMPROVEMENT IN CONSUMER RECEPTION AND SALES DURING THE LAST FOUR QUARTERS ADDING THAT THE QUARTER WAS THE CULMINATION OF A LONG EFFORT TO REALLY REFOCUS THEIR BUSINESS CHAIRWOMAN SALLY FRAME KASAKS CALLED THE SPRING SEASON VERY GRATIFYING AND SAID DESPITE GENERALLY WEAK CONSUMER CONFIDENCE THE CONFIDENCE OF OUR CUSTOMERS IN ANNTAYLOR IS IMPROVING THE 24 EARNINGS GAIN ON A 69 SALES INCREASE WAS SLIGHTLY ABOVE ANALYSTS' EXPECTATIONS THAT THE SEATTLE SPECIALTY APPAREL RETAILER WOULD POST FLAT TO SLIGHTLY LOWER EARNINGS SALES ROSE TO 102 BILLION FROM 9516 MILLION A YEAR EARLIER NORDSTROM OFFICIALS SAID THE RESULTS SHOWED THAT THE COMPANY'S EFFORTS TO REDUCE OPERATING EXPENSES ARE BEGINNING TO PAY OFF THE LITTLE ROCK ARK DEPARTMENT STORE OPERATOR SAID SALES GREW 13 TO 11 BILLION FROM 9749 MILLION A YEAR AGO SALES IN STORES OPEN AT LEAST A YEAR ROSE 4 UNLIKE MOST OTHER RETAILERS DILLARD DOESN'T RELEASE MONTHLY SALES FIGURES AS A RESULT THERE'S LESS WARNING WHEN SALES ARE WEAKER THAN EXPECTED ANALYSTS SAID THE COMPANY ALONG WITH OTHER DEPARTMENT STORES SUFFERED FROM WEAK APPAREL SALES PARTICULARLY IN WOMEN'S CLOTHING IN THE QUARTER SALES FOR THE FIRST HALF ROSE 13 TO 227 BILLION FROM 201 BILLION 9308110076 930811 COMMODITIES US IS EXPECTED TO LOWER ITS HARVEST FORECASTS TO REFLECT 6 BILLION IN FLOOD DROUGHT DAMAGE BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE US AGRICULTURE DEPARTMENT IS EXPECTED TO LOWER ITS HARVEST FORECASTS TODAY TO REFLECT ROUGHLY 6 BILLION OF CROP DAMAGE CAUSED BY RAIN AND FLOODS IN THE MIDWEST AND DROUGHT IN THE SOUTH THE MONTHLY CROP REPORT IS ONE OF WASHINGTON'S MOST CLOSELY WATCHED AGRICULTURAL FORECASTS TODAY'S REPORT WILL BE ESPECIALLY SIGNIFICANT BECAUSE THE GRAIN INDUSTRY IS HAVING A HARD TIME ANTICIPATING THE SIZE OF THE CRUCIAL HARVESTS AT LEAST EIGHT MILLION ACRES HAVE BEEN WASHED OUT AND MUCH OF THE CROPS IN IOWA AND MINNESOTA ARE TWO WEEKS TO FOUR WEEKS BEHIND SCHEDULE I CAN'T RECALL A CROP PRODUCTION REPORT THAT HAS BEEN MORE EAGERLY ANTICIPATED SAID JOEL KARLIN A GRAIN ANALYST AT KEMPER SECURITIES INC A UNIT OF KEMPER CORP THE CORN AND SOYBEAN FORECASTS FOR AUGUST WHICH ARE THE FIRST OF THIS YEAR'S GROWING SEASON BASED ON FIELD SURVEYS WILL AFFECT EVERYTHING FROM THE OUTLOOK FOR FOOD PRICES TO POLITICAL DECISIONS INVOLVING DISASTER AID AND NEXT YEAR'S FARM PROGRAM THE REPORT WILL BE DIGESTED BY EVERYONE FROM METALS TRADERS LOOKING FOR SIGNS OF INFLATION AND RUSSIAN OFFICIALS BUDGETING THE COST OF US GRAIN IMPORTS TO FARM CHEMICAL MANUFACTURERS INTERESTED IN WHETHER THE HARVESTS ARE STUNTED ENOUGH TO SPARK A PLANTING BOOM NEXT YEAR IN THE ABSENCE OF HARD INFORMATION FORECASTS WITHIN THE GRAIN INDUSTRY VARY WIDELY ESTIMATES OF THE CORN CROP BY MAJOR TRADING FIRMS RANGE FROM 71 BILLION BUSHELS TO 78 BILLION BUSHELS THIS RANGE IS THE DIFFERENCE BETWEEN AN UNCOMFORTABLY SMALL STOCKPILE AND AN ADEQUATE SUPPLY BY LATE 1994 AND A LACKLUSTER TRADING MARKET AND A 25 RALLY IN GRAIN PRICES THE RANGE ALSO MEANS THE DIFFERENCE BETWEEN STABLE CONSUMER FOOD PRICES AND NOTICEABLY HIGHER GROCERY BILLS NEXT YEAR INDUSTRY FORECASTS OF AMERICA'S SECONDMOST VALUABLE CROP SOYBEANS RANGE FROM 17 BILLION BUSHELS TO 19 BILLION BUSHELS BECAUSE OF THE CONFUSION AGRICULTURE SECRETARY MIKE ESPY ORDERED THE LARGEST SURVEY OF MIDWEST CROPS IN THE DEPARTMENT'S HISTORY THE FORECASTS WHICH WILL BE RELEASED AFTER CLOSE OF TRADING AT THE CHICAGO BOARD OF TRADE WILL BE BASED ON THE INSPECTION OF 9000 FIELDS AND 11000 TELEPHONE INTERVIEWS IN THE NINE STATES WITH CROP DAMAGE GOVERNMENT INSPECTORS USUALLY VISIT ABOUT 2000 FIELDS FOR THE AUGUST CROP REPORT STILL THE GOVERNMENT PROBABLY WILL HAVE TO UPDATE THE CROP FORECAST REPORTS SEVERAL TIMES BEFORE HARVESTS ARE COMPLETE WHAT THE GOVERNMENT IS FORECASTING IS THE POTENTIAL SIZE OF THE CORN AND SOYBEAN CROPS IF THE MIDWEST RECEIVES NORMAL WEATHER DURING THE REST OF THE GROWING SEASON THE REGION HASN'T HAD NORMAL WEATHER IN NEARLY A YEAR THE NATIONAL WEATHER SERVICE IS PREDICTING LOWERTHANNORMAL TEMPERATURES INTO AUTUMN ACROSS MUCH OF THE WETTEST PARTS OF THE MIDWEST FARM BELT MANY OF THESE FIELDS NEED WARM WEATHER IF CROPS ARE TO REACH MATURITY BEFORE THE KILLING FROSTS OF OCTOBER EARLIERTHANUSUAL FROSTS WOULD FORCE THE GOVERNMENT TO SLASH TODAY'S FORECAST SIMILARLY A LATE FROST WOULD SIGNAL BIGGER CROPS THE AGRICULTURE DEPARTMENT'S EARLIER CROP FORECASTS THIS YEAR MOSTLY WERE BASED ON INTERNAL CALCULATIONS AND GUESSWORK IN JULY THE MIDWEST RAIN AND FLOODING WAS ENOUGH FOR THE DEPARTMENT TO LOWER ITS CORN FORECAST TO 785 BILLION BUSHELS FROM 85 BILLION BUSHELS SINCE THEN WEEKLY SURVEYS OF FARMERS BY AGRICULTURAL STATES SIGNAL THAT ROUGHLY 22 MILLION ACRES OF CORN AND SOYBEANS ARE IN POOR TO VERY POOR CONDITION AND IT ISN'T CLEAR THAT A RECENT WAVE OF DRIER WEATHER ACROSS THE MIDWEST HAS DONE MUCH TO IMPROVE CONDITIONS AT THE CHICAGO BOARD OF TRADE YESTERDAY THE CORN FUTURES CONTRACT FOR DECEMBER DELIVERY ROSE 325 CENTS A BUSHEL TO SETTLE AT 246 A BUSHEL IN PART BECAUSE IOWA OFFICIALS REPORTED MONDAY THAT CORN FARMERS RATE 28 OF THE CROP POOR TO VERY POOR COMPARED WITH 25 OF THE CROP THE PREVIOUS WEEK THE SOYBEAN CONTRACT FOR NOVEMBER DELIVERY ROSE 325 CENTS A BUSHEL TO SETTLE AT 6725 A BUSHEL IN THE WAKE OF REPORTS THAT ONLY 35 OF THE US SOYBEAN CROP IS SETTING PODS MORE THAN HALF THE SOYBEAN CROP IS USUALLY IN THAT STAGE BY NOW USUALLY UNCERTAINTY OVER THE SIZE OF HARVESTS HELPS FUEL PRICE VOLATILITY AT THE CHICAGO BOARD OF TRADE BUT TRADERS HAVEN'T HAD MUCH SUCCESS SUSTAINING A GRAIN RALLY IN PART BECAUSE GROWING CONDITIONS IN SOME MIDWEST STATES SUCH AS INDIANA AND OHIO HAVE BEEN EXCELLENT AND WHILE DROUGHT IS SCORCHING CROPS IN THE SOUTH THAT REGION'S CORN AND SOYBEAN OUTPUT IS DWARFED BY THE MIDWEST'S WHAT'S MORE MUCH OF LAST YEAR'S RECORD CORN HARVEST IS STILL AROUND WHEN THE HARVEST BEGINS IN SEVERAL WEEKS THERE WILL BE ABOUT TWO BILLION BUSHELS OF CORN IN STORAGE IN OTHER COMMODITY MARKETS YESTERDAY ENERGY THE OIL MARKET TURNED SLUGGISH AGAIN AFTER MONDAY'S RALLY OIL FUTURES GENERALLY DRIFTED LOWER IN BOTH NEW YORK AND LONDON DESPITE NEW CALLS FOR PRODUCTION RESTRAINT BY MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CRUDE OIL FOR SEPTEMBER DELIVERY WAS DOWN THREE CENTS TO SETTLE AT 1752 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE NATURAL GAS FUTURES WERE HIGHER HOWEVER ON TECHNICAL FACTORS WITH THE SEPTEMBER CONTRACT RISING 42 CENTS TO 2218 A MILLION BRITISH THERMAL UNITS THERE WAS LITTLE NEWS TO AFFECT EITHER OIL OR GAS TRADING AFTER A ONEDAY MEETING IN VIENNA OPEC'S SOCALLED COMPLIANCE COMMITTEE RECOMMENDED THAT THE THIRDQUARTER PRODUCTION CEILING OF 236 MILLION BARRELS A DAY BE CONTINUED BEYOND THE PERIOD THE CEILING IS WIDELY IGNORED HOWEVER AND COMMITTEE MEMBERS AND JEAN PING OPEC'S PRESIDENT ARE TO TOUR OPEC COUNTRIES IN PREPARATION FOR THE SEPT 25 MEETING OF ALL OIL MINISTERS AFTER US FUTURES TRADING CLOSED YESTERDAY THE AMERICAN PETROLEUM INSTITUTE RELEASED ITS LATEST WEEKLY REPORT ON OIL INVENTORIES THE API REPORT IS LIKELY TO BE BULLISH FOR THE GASOLINE MARKET BECAUSE IT SHOWED THAT GASOLINE INVENTORIES DECLINED LAST WEEK BY NEARLY 66 MILLION BARRELS A BIGGER DROP THAN THE INDUSTRY HAD EXPECTED 9308110075 930811 MANAGING YOUR CAREER BY JOANN S LUBLIN YOUR BOSS BLUNDERED BUT NOW BLAMES YOU IF YOU HAD ANY DOUBT THIS EPISODE SHOULD MAKE CLEAR THAT YOUR BOSS ISN'T THE KIND OF PERSON YOU WANT TO WORK FOR BUT SINCE IT MAY BE HARD TO ESCAPE QUICKLY YOUR FIRST CONCERN SHOULD BE LIMITING THE DAMAGE TO YOUR CAREER THERE MAY BE SOME SOLACE IN KNOWING YOU AREN'T ALONE PROBLEM BOSSES OF ALL KINDS ARE BECOMING MORE COMMON AS WORKLOADS GROW AND JOB SECURITY SHRINKS ANYTHING THAT BUILDS ANXIETY LEADS TO MORE CRAZY BOSSES SAYS A NEW YORK EXECUTIVE WHO RECENTLY WROTE A BOOK ON THE SUBJECT UNDER THE PSEUDONYM STANLEY BING OF ALL PROBLEM BOSSES A BLAMER IS AMONG THE TOUGHEST TO HANDLE TOO MANY EMPLOYEES FAIL TO APPRECIATE THE LONGTERM CONSEQUENCES OF WORKING FOR SOMEBODY LIKE THIS SAYS MARDY GROTHE A BOSTON PSYCHOLOGIST AND COAUTHOR OF A BOOK ON PROBLEM BOSSES IT'S NOT UNLIKE BEING IN A BAD MARRIAGE PEOPLE GET DEPRESSED LIMITING DAMAGE FROM MISPLACED BLAME REQUIRES DELICATE JUDGMENTS SHARP BUREAUCRATIC INSTINCTS AND VARYING LEVELS OF RISK TOLERANCE IT'S NO WONDER THAT MANY PEOPLE END UP DOING NOTHING MORE THAN GRINDING THEIR TEETH BUT STAYING QUIET AND TAKING THE SUPERVISOR'S BLAME MAY BE BENEFICIAL THE GUILTY PARTY OFTEN TRIES TO MAKE AMENDS SAYS DEE SODER A PSYCHOLOGIST AND PRESIDENT OF ENDYMION CO AN EXECUTIVEADVISORY FIRM IN NEW YORK YOU HAVE THE BOSS EFFECTIVELY BLACKMAILED ONE INSURANCE COMPANY VICE PRESIDENT TOOK THE HEAT FOR HIS BOSS'S MISCALCULATION IN PRICING A PRODUCT ABOUT SEVEN MONTHS LATER THE GRATEFUL BOSS WIDENED HIS ASSISTANT'S SET OF RESPONSIBILITIES THE ADDED DUTIES PROVED A SPRINGBOARD TO A PROMOTION SEVERAL MONTHS AFTER THAT YET BY KEEPING SILENT YOU ALSO RISK DAMAGING YOUR REPUTATION A VICE PRESIDENT OF A FINANCIALSERVICES COMPANY WAS BLAMED FOR DELAYS IN A STARTUP OPERATION AFTER HIGHERUPS' PROMISE OF ADEQUATE BUDGET AND STAFF FAILED TO MATERIALIZE EVENTUALLY HER BOSS LEFT SAYS BETSY JAFFE PRESIDENT OF CAREER CONTINUUM A NEW YORK CAREERCONSULTING FIRM SO SHE COULD TELL THE TRUTH BUT BY THEN NOBODY BELIEVED HER THE MIXUP DERAILED THE VICE PRESIDENT'S CAREER SHE WAS TAINTED BY THE STARTUP PROBLEMS DR JAFFE SAYS EVERYTHING SHE DID FROM THEN ON WASN'T VIEWED POSITIVELY SHE WAS STRIPPED OF CERTAIN RESPONSIBILITIES FINALLY SHE QUIT ANOTHER APPROACH IS TO ACCEPT YOUR BOSS'S BLAME WHILE ENGAGING IN SUBTERFUGE SOME CAREER COUNSELORS SUGGEST INFORM COLLEAGUES ABOUT YOUR INNOCENCE ESPECIALLY THOSE WHO SEEM THE MOST INTERESTED IN YOUR ADVANCEMENT BUT TRY NOT TO EXPLICITLY BLAME YOUR BOSS IF THIS SCUTTLEBUTT GETS BACK TO YOUR BOSS YOU SAY I ALWAYS SUPPORTED YOU' SAYS DR SODER ONE OF THE FIRST RULES OF MANAGEMENT IS TO TRY TO MAKE YOUR BOSS LOOK GOOD BECAUSE HE HAS LIFEANDDEATH AUTHORITY OVER YOU IN MANY CASES OF MISPLACED BLAME IT MAKES MORE SENSE TO TRY TO CLEAR THE AIR TACTFULLY IN A PRIVATE SESSION WITH THE BOSS IT'S IMPORTANT TO DO SOMETHING BUT DON'T BURN YOUR BRIDGES UNNECESSARILY BY CHALLENGING A BOSS IN FRONT OF COLLEAGUES SAYS STACEY KOHLER AN ORGANIZATIONAL PSYCHOLOGIST AT ST PAUL FIRE & MARINE INSURANCE ST PAUL MINN A PAPER TRAIL ALSO CAN VINDICATE AN UNFAIRLY ACCUSED SUBORDINATE ESPECIALLY IF THE MISTAKE COMES UP LATER DURING A PERFORMANCE APPRAISAL DR GROTHE THE BOSTON PSYCHOLOGIST PROPOSES THAT YOU GIVE YOUR ACCOUNT OF AN INCIDENT AND VERIFY ITS DATE BY SENDING YOURSELF A CERTIFIED LETTER AND KEEPING THE ENVELOPE SEALED IT'S A LITTLE FORM OF SELFPROTECTION HE SAYS ANOTHER KIND OF DOCUMENTATION WORKED FOR A SALES MANAGER AT A TELECOMMUNICATIONS COMPANY HIS MARKETING DIRECTOR ABRUPTLY CANCELED BONUSES EARNED BY THREE WORKERS CLAIMING HE HAD NEVER CLEARED THE BONUS PLAN WHEN THE WORKERS COMPLAINED THE DIRECTOR BLAMED HIS SALES MANAGER SO THE SALES MANAGER DUG UP AN INTERNAL MEMO SIGNED BY THE MARKETING CHIEF APPROVING THE PLAN THE POTENTIALLY RISKIEST TACTIC OF COURSE IS TATTLING TO THE BOSS'S BOSS IF YOU FEEL YOU CAN'T TALK TO YOUR SUPERVISOR DIRECTLY YOUR CORPORATE ROLE IS TOO VISIBLE OR YOUR BOSS'S MISTAKE TOO SERIOUS YOU MAY SEE LITTLE ALTERNATIVE TO TELLING HIGHERUPS ABOUT THE MISPLACED BLAME BUT THE STRATEGY COULD COST YOU YOUR JOB ANYTIME YOU HAVE TO STAND UP FOR YOURSELF THERE IS RISK TO YOUR CAREER SAYS HARRY LEVINSON A MANAGEMENT PSYCHOLOGIST AND CONSULTANT IN BELMONT MASS YOU MAY HAVE A PYRRHIC VICTORY TO MINIMIZE FIREWORKS IT MIGHT HELP TO ALERT YOUR BOSS THAT YOU INTEND TO MEET WITH SENIOR MANAGEMENT ABOUT THE ERROR IT IS VERY DIFFICULT TO CIRCUMVENT PEOPLE TO WHOM YOU REPORT ADVISES ST PAUL'S DR KOHLER AVOIDING HIGHERUPS ALSO CAN BE RISKY A PRODUCTION EXECUTIVE FOR A BIG MANUFACTURER LOST HIS JOB WHEN HE FAILED TO INFORM THE PRESIDENT ABOUT A MISSTEP BY HIS IMMEDIATE BOSS THE EXECUTIVE HAD TOLD HIS BOSS ABOUT AN UNACCEPTABLY HIGH LEVEL OF REJECTED PARTS THE BOSS PROMISED TO CORRECT THE PROBLEM BUT DIDN'T THE COMPANY PRESIDENT NOT KNOWING THIS BACKGROUND LARGELY BLAMED THE PRODUCTION EXECUTIVE HE GOT FIRED BECAUSE THE PRESIDENT SAID WE CAN'T TOLERATE THESE REJECTS' SAYS MORTIMER FEINBERG CHAIRMAN OF CONSULTANTS BFS PSYCHOLOGICAL ASSOCIATES IN NEW YORK IN RETROSPECT SAYS DR FEINBERG THE DISMISSED EXECUTIVE BLAMED HIS LACK OF COURAGE' TO CHALLENGE HIS BOSS BY APPROACHING THE PRESIDENT ABOUT THE REJECTED PARTS 9308110073 930811 REVIEW & OUTLOOK EDITORIAL ASIDES A RIVER'S RUN THREW IT ACTRESS MERYL STREEP INFURIATED PACIFIC NORTHWEST APPLE GROWERS IN 1989 WHEN SHE LENT HER NAME TO THE BOGUS SCARE CAMPAIGN AGAINST THE GROWTHREGULATING CHEMICAL ALAR WHAT GOES AROUND COMES AROUND NOW IT ISN'T APPLE GROWERS WHO WANT TO BLOCK HER NEW MOVIE RIVER WILD BUT HER OLD FRIENDS IN THE ENVIRONMENTAL MOVEMENT THE OREGON NATURAL RESOURCE COUNCIL HAS CHALLENGED THE PERMITS THE FILM WAS ISSUED TO SHOOT SCENES ON THE ROGUE RIVER THEY SAY THAT PLANS TO BUILD SCAFFOLDS FOR CAMERAS AND REMOVE BRUSH ALONG THE RIVER VIOLATE THE NATIONAL WILD AND SCENIC RIVERS ACT FEDERAL OFFICIALS SAY THE FILMING WON'T DAMAGE THE RIVER AND WILL PUMP 5 MILLION INTO THE LOCAL ECONOMY BUT AS APPLE GROWERS AND LOGGERS UP THAT WAY HAVE LEARNED LOCAL ECONOMIES AREN'T HIGH ON THE ENVIRONMENTALISTS' LIST OF PRIORITIES INDEED WE HOPE THE CONTROVERSY TEACHES MS STREEP SOMETHING ABOUT JUST HOW FAR ENVIRONMENTAL ACTIVISTS WILL GO TO SHUT DOWN ECONOMIC ACTIVITY WE SUPPOSE WE CAN BE GRATEFUL THAT THEY CAN'T SUPPRESS ALL THOSE CLASSIC AND BEAUTIFUL JOHN WAYNE MOVIES THAT JOHN FORD DIRECTED WITH SUPREME POLITICAL INCORRECTNESS IN MONUMENT VALLEY 9308110072 930811 TECHNOLOGY & HEALTH TWO STUDIES FIND DIFFERENT METHODS EFFECTIVE IN TREATING MILD HYPERTENSION BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL A PAIR OF STUDIES IN SEPARATE MEDICAL JOURNALS FOUND TWO DIFFERENT APPROACHES WERE EFFECTIVE IN TREATING MILD HIGH BLOOD PRESSURE ONE STUDY FOUND THAT PATIENTS WHO TAKE HEART DRUGS AND MAKE HEALTHY LIFESTYLE CHANGES HAVE FEWER HEART PROBLEMS THAN PATIENTS WHO ONLY MAKE LIFESTYLE CHANGES BUT ANOTHER GROUP OF RESEARCHERS FOUND THAT SIMPLY LOSING WEIGHT CAN BE EFFECTIVE IN LOWERING BLOOD PRESSURE TO NORMAL LEVELS AND CAN ELIMINATE OR REDUCE THE NEED FOR HEART MEDICATIONS AN ESTIMATED 50 MILLION AMERICANS HAVE HIGH BLOOD PRESSURE OR HYPERTENSION MORE THAN HALF WITH MILD CASES WHETHER TO TREAT MILDLY AFFLICTED PATIENTS WITH DRUGS HAS BEEN THE SUBJECT OF MEDICAL DEBATE WEIGHT LOSS HAS LONG BEEN KNOWN TO LOWER BLOOD PRESSURE BUT ITS LONGTERM EFFICACY HAS BEEN QUESTIONED BECAUSE RELAPSE IS COMMON ACCORDING TO A TEAM OF RESEARCHERS LED BY BARRY R DAVIS OF THE UNIVERSITY OF TEXAS SCHOOL OF PUBLIC HEALTH THEIR STUDY WAS PUBLISHED IN THIS WEEK'S ARCHIVES OF INTERNAL MEDICINE THE STUDY OF 587 OVERWEIGHT MILDLY HYPERTENSIVE PATIENTS COMPARED BLOOD PRESSURE CHANGES IN PATIENTS WHO CHANGED THEIR DIETS TO LOSE WEIGHT WITH PATIENTS WHOSE DIETS WERE UNCHANGED WITHIN THOSE TWO GROUPS IT ALSO COMPARED PATIENTS WHO WEREN'T TAKING DRUGS WITH THOSE ON ONE OF TWO HEART MEDICATIONS OVERALL HALF OF THE PATIENTS WHO LOST WEIGHT REDUCED THEIR BLOOD PRESSURE COMPARED WITH 41 OF THOSE ON THEIR USUAL DIETS OF THE PATIENTS WHO LOST WEIGHT AND WHO WEREN'T TAKING ANY HEART MEDICATION A THIRD KEPT THEIR BLOOD PRESSURE UNDER CONTROL EVEN THOUGH THEY REGAINED MUCH OF THEIR WEIGHT DURING THE FIVEYEAR STUDY FOR THOSE WHO WERE ON MEDICATION WEIGHT LOSS REDUCED THE LIKELIHOOD THEY WOULD NEED ADDITIONAL DRUGS OR HIGHER DOSES THE STUDY SHOWED THAT PATIENTS DON'T HAVE TO LOSE MUCH WEIGHT ON AVERAGE ABOUT SEVEN POUNDS TO REDUCE THEIR BLOOD PRESSURE SAID LAWRENCE FRIEDMAN OF THE NATIONAL HEART LUNG AND BLOOD INSTITUTE NOW PHYSICIANS CAN POINT TO THE STUDY AND SAY YOU CAN AVOID MEDICATION IF YOU LOSE WEIGHT' HE SAID RESULTS OF A SEPARATE STUDY IN THIS WEEK'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION HOWEVER SHOW THAT FOR MANY PATIENTS MEDICATION MAY BE A BETTER TREATMENT OF THE 902 PATIENTS WHO PARTICIPATED IN THE STUDY THOSE WHO TOOK HEART DRUGS IN ADDITION TO MAKING HEALTHY LIFESTYLE CHANGES SUFFERED A THIRD FEWER HEART ATTACKS OTHER MAJOR HEART PROBLEMS AND STROKES THAN PATIENTS WHO JUST MADE LIFESTYLE CHANGES ACCORDING TO THE AUTHORS LED BY JAMES D NEATON OF THE UNIVERSITY OF MINNESOTA SCHOOL OF MEDICINE THE RESULTS OF THE TWO STUDIES DON'T NECESSARILY CONFLICT DR FRIEDMAN SAID BECAUSE THE DRUG TREATMENT IS STILL ONLY RECOMMENDED AFTER OTHER APPROACHES SUCH AS WEIGHT LOSS HAVE FAILED WHAT THE NEATON STUDY DOESN'T SHOW IS WHICH HEART DRUG TO USE SAID HENRY R BLACK OF THE RUSHPRESBYTERIAN ST LUKE'S MEDICAL CENTER IN CHICAGO WHO WROTE AN EDITORIAL ON THE STUDY IN JAMA FIVE WIDELY USED HEART DRUGS WERE TESTED BUT NONE SHOWED A CONSISTENT ADVANTAGE OVER THE OTHERS THERE WAS NOTHING TO SUGGEST THAT WE SHOULD NECESSARILY BE SPENDING MORE MONEY ON NEWER DRUGS SUCH AS ACE INHIBITORS OR CALCIUMCHANNEL BLOCKERS DR BLACK SAID AS OPPOSED TO OLDER DRUGS SUCH AS DIURETICS AND BETA BLOCKERS 9308110071 930811 MARKETING & MEDIA PEPSICO TO INVEST 500 MILLION IN POLAND IN BATTLE WITH COKE OVER EASTERN EUROPE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID IT PLANS TO INVEST 500 MILLION IN POLAND SIGNALING THAT THE COUNTRY WILL BECOME A MAJOR BATTLEGROUND AS THE COMPANY FIGHTS COCACOLA CO'S DRIVE INTO EASTERN EUROPE COCACOLA HAS SIGNIFICANTLY EXPANDED ITS PRESENCE IN EASTERN EUROPE OVER MUCH OF THE PAST TWO YEARS WITH PEPSI OFFERING MOSTLY TACTICAL RESISTANCE LIKE PRICE DISCOUNTING AND NEW PACKAGING AS A RESULT COKE'S INVESTMENTS HAVE PRODUCED BIG MARKETSHARE GAINS IN THE FORMER COMMUNIST COUNTRIES WHERE IT HAD BADLY TRAILED PEPSI FOR MORE THAN TWO DECADES THE FIVEYEAR INVESTMENT BY PEPSICO ALSO SHOWS THAT THE COMPANY INCREASINGLY IS AIMING ITS INTERNATIONALINVESTMENT ARTILLERY SQUARELY AT EMERGING MARKETS SINCE APRIL PEPSICO HAS ANNOUNCED FIVEYEAR PLANS TO INVEST 115 MILLION IN THE BUDAPEST AREA OF HUNGARY AND 750 MILLION IN MEXICO PEPSICO'S POLISH INVESTMENT FURTHERS ITS STRATEGY OF EXPANDING ITS BEVERAGE AND FOOD BUSINESSES TOGETHER OF THE 500 MILLION ABOUT 40 WILL BE USED TO BUILD SOFTDRINK PLANTS AND BOOST PEPSI DISTRIBUTION ANOTHER 40 WILL BE USED TO DEVELOP THE COMPANY'S SNACKFOOD OPERATION AND THE REMAINDER IS TARGETED FOR THE NASCENT FASTFOOD BUSINESS IN THE FORMER COMMUNIST COUNTRY POLAND IS CONSIDERED A TREASURE TROVE BY US CONSUMERPRODUCT MARKETERS MANY STRUGGLING WITH A LOWGROWTH DOMESTIC MARKET WITH ROUGHLY 38 MILLION PEOPLE POLAND IS THE LARGEST CONSUMER MARKET IN THE REGION EXCLUDING THE FORMER SOVIET UNION AND HAS A POPULATION INTENSELY INTERESTED IN WESTERN CONSUMER GOODS TO CAPITALIZE ON THAT PEPSICO YESTERDAY OPENED A THREEINONE RESTAURANT IN POLAND ITS FIRST OUTSIDE OF THE US PEPSICO PLANTED ITS ATTENTIONGETTING CONGLOMERATION OF PIZZA HUT TACO BELL AND KENTUCKY FRIED CHICKEN AT WARSAW'S BUSY SOLIDARITY AVENUE AND BANK SQUARE INTERSECTION PEPSI'S PRODUCTS ARE TREATS FOR THOSE WHO HAVEN'T HAD SAID EMANUEL GOLDMAN A BEVERAGE ANALYST FOR PAINEWEBBER INC EACH OF PEPSICO'S BUSINESS LINES HAS VAST POTENTIAL FOR GROWTH IN POLAND THE WESTERN FASTFOOD INDUSTRY AMOUNTS TO A DOZEN JOINTS SUCH AS MCDONALD'S AND PIZZA HUT CURRENTLY POLISH CONSUMERS EAT LESS THAN HALF A POUND OF SNACK CHIPS A YEAR WELL BELOW THE TWO POUNDS ANNUALLY MUNCHED IN SOME NEIGHBORING EUROPEAN COUNTRIES TO THE WEST AS FOR SOFT DRINKS POLES EACH DRINK ABOUT TWO GALLONS A YEAR ROUGHLY ONETENTH THE AMOUNT CONSUMED IN SOME WESTERN EUROPEAN COUNTRIES PEPSICO AND COKE HAVE BEEN IN POLAND SINCE 1972 BUT UNTIL THE COLLAPSE OF COMMUNISM THE COLA GIANTS HAD TO OPERATE UNDER SUCH HEAVY GOVERNMENT REGULATION THAT THEY WERE ABLE TO MUSTER A COMBINED MARKET SHARE OF ONLY ABOUT 10 LOCAL SOFT DRINKS DOMINATED THE INDUSTRY IN THE PAST THREE YEARS HOWEVER COKE AND PEPSI HAVE HAD SUBSTANTIAL GROWTH IN POLAND WHERE THEY NOW ACCOUNT FOR AN ESTIMATED 60 OF THE MARKET IN TERMS OF US DOLLARS THE MARKET ROUGHLY EQUATES TO 80 MILLION WITH COKE'S 35 SHARE EDGING OUT PEPSI'S 25 ACCORDING TO INDUSTRY ESTIMATES FOR BOTH COMPANIES POLAND REPRESENTS ENORMOUS POTENTIAL GROWTH PEPSICO SAID ITS BEVERAGE INVESTMENT ROUGHLY 200 MILLION OVER THE NEXT FIVE YEARS WILL BE USED FOR EQUIPMENT UPGRADES PRODUCTION EXPANSIONS MARKETING PROMOTION ADVERTISING AND EMPLOYEE TRAINING SINCE 1990 COKE HAS PUMPED SOME 207 MILLION INTO PLANTS TRUCKS AND EQUIPMENT SAID E NEVILLE ISDELL THE COCACOLA EXECUTIVE IN CHARGE OF THE COMPANY'S NORTHEAST EUROPE/MIDDLE EAST GROUP MR ISDELL SAID COKE HAS JUST BEGUN ADVERTISING IN POLAND THIS SUMMER AND PLANS TO INVEST AN ADDITIONAL 50 MILLION IN NEW PLANTS THERE IN THE NEXT 12 MONTHS THIS IS GROWING INTO A SIGNIFICANT BUSINESS FOR US HE SAID ASIDE FROM CHECKING ATLANTABASED COKE PEPSI DECIDED TO INVEST MORE HEAVILY IN POLAND BECAUSE IT HAD DEVELOPED MARKET EXPERTISE FROM ITS 40OWNERSHIP OF E WEDEL SA POLAND'S BIGGEST CHOCOLATE COMPANY PEPSICO ACQUIRED THE STAKE FOR 25 MILLION IN 1991 AND NOW SAYS IT PLANS TO INCREASE ITS OWNERSHIP TO NEARLY 70 BY NEXT YEAR PEPSICO BASED IN PURCHASE NY ALSO SAID IT PLANS TO OPEN A NEW SALTY SNACK PLANT IN GRODZISK AS PART OF ITS EXPANDED INVESTMENT IN SNACK FOODS WEDEL IS ONE OF PEPSICO'S BUSINESS PARTNERS IN POLAND THAT WILL HELP SHOULDER THE 500 MILLION INVESTMENT WHICH PEPSICO DESCRIBED AS THE LARGEST IN THE CONSUMERPRODUCTS INDUSTRY IN POLAND PEPSI SAID RETAIL SALES OF ITS PRODUCTS IN POLAND ARE EXPECTED TO EXCEED 100 MILLION THIS YEAR AND 600 MILLION BY THE END OF THE DECADE POLAND IS THE BIGGEST CENTRAL EUROPEAN COUNTRY THE GOVERNMENT COMMITMENT TO ECONOMIC REFORM IS MUCH MORE SUREFOOTED AND WE'RE CONFIDENT THE ECONOMIC GROWTH PROSPECTS ARE ATTRACTIVE SAID RICHARD M NORTON A PEPSI SENIOR VICE PRESIDENT 9308110070 930811 WHO'S NEWS UNITED HEALTHCARE CORP UNITED HEALTHCARE CORP MINNEAPOLIS FORMER NEW JERSEY GOV THOMAS H KEAN WAS NAMED TO THE BOARD OF THE HEALTHCARE MANAGEMENT CONCERN MR KEAN 58 YEARS OLD ASSUMES THE BOARD SEAT VACATED BY WALTER F MONDALE WHO WAS RECENTLY APPOINTED US AMBASSADOR TO JAPAN 9308110069 930811 BUSINESS BRIEF FERROFLUIDICS CORP REGULATORS ARE INVESTIGATING ALLEGED SECURITIES VIOLATIONS FERROFLUIDICS CORP SAID THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING WHETHER THE COMPANY OR CERTAIN INDIVIDUALS VIOLATED SECURITIES LAWS FERROFLUIDICS A NASHUA NH MAKER OF LIQUID FERRITE BEARINGS SAID THE INVESTIGATION IS LOOKING AT POSSIBLE MANIPULATION BY UNNAMED PERSONS OF THE COMPANY'S SECURITIES FAILURES TO DISCLOSE TRANSACTIONS WITH THE COMPANY IN WHICH THOSE PERSONS MAY HAVE HAD A MATERIAL INTEREST AND FAILURE TO DISCLOSE PAYMENTS FOR FAVORABLE RESEARCH REPORTS IN COMPOSITE OVERTHECOUNTER TRADING YESTERDAY FERROFLUIDICS CLOSED AT 1150 A SHARE A 52WEEK LOW DOWN 3125 IN FEBRUARY FORTUNE MAGAZINE REPORTED THAT THE COMPANY PAID A BROKERAGE FIRM AND AN ANALYST FOR A FAVORABLE RESEARCH REPORT WITHOUT DISCLOSING IN THE REPORT WHO FINANCED IT FERROFLUIDICS SAID IT FORMED A COMMITTEE OF THREE OUTSIDE DIRECTORS THAT HAS RETAINED A LAWYER FOR ITS OWN INVESTIGATION IT SAID IT IS COOPERATING WITH THE SEC 9308110068 930811 BUSINESS BRIEF INSTORE ADVERTISING INC PREPACKAGED BANKRUPTCY ENDS NAME TO BE EMARC INSTORE ADVERTISING INC EMERGED FROM A PREPACKAGED BANKRUPTCY AND WILL CHANGE ITS NAME TO EMARC INC CREDITORS OF THE COMPANY WHICH DELIVERS ADVERTISING THROUGH ELECTRONIC SIGNS IN SUPERMARKETS WILL RECEIVE A NEW SERIES OF PREFERRED STOCK AND WILL INITIALLY CONTROL EMARC IN EXCHANGE THE COMPANY WILL SHED ALMOST ALL ITS DEBT INCLUDING MORE THAN 17 MILLION OWED FROM LEASING THE ELECTRONIC SIGNS THE CREDITORS' PREFERRED STOCK WILL BE CONVERTIBLE AFTER THE FIRST YEAR INTO 80 OF COMMON STOCK OUTSTANDING ON A FULLY DILUTED BASIS AND PREFERRED HOLDERS WILL HAVE THE RIGHT TO ELECT A MAJORITY OF THE BOARD AS LONG AS AT LEAST HALF THE PREFERRED SHARES ARE OUTSTANDING PREVIOUS COMMON HOLDERS VENDORS AND UNSECURED CLAIMS RECEIVED NOTHING UNDER THE PLAN THREE EXECUTIVES AND OTHER KEY EMPLOYEES INITIALLY WILL PURCHASE NEW COMMON STOCK IN THE COMPANY FOR 100000 INSTORE GREENWICH CONN FILED FOR BANKRUPTCY JULY 8 AND THE REORGANIZATION PLAN WAS APPROVED FRIDAY 9308110067 930811 BUSINESS BRIEF MARTIN MARIETTA CORP DECLINING DEFENSE BUDGET FORCES ONE PLANT TO CLOSE MARTIN MARIETTA CORP SAID IT WILL CLOSE ITS CONKLIN NY ELECTRONICS PLANT EARLY NEXT YEAR AND LAY OFF MOST OF THE PLANT'S 350 EMPLOYEES BECAUSE OF THE DECLINING DEFENSE BUDGET THE DEFENSE CONTRACTOR SAID THAT THE PLANT'S 1993 PRODUCTION WORKLOAD IS HALF THE SIZE FORECAST TWO YEARS AGO AND IS EXPECTED TO DROP ANOTHER 20 THIS YEAR MARTIN MARIETTA ATTRIBUTED THE DECLINE TO CANCELLATIONS AND CUTBACKS IN PROGRAMS AT UNITS SERVED BY THE CONKLIN PLANT THE PLANT MAKES ADVANCED ELECTRONIC COMPONENTS FOR RADAR SONAR AND SUBMARINE COMBAT SYSTEMS THOMAS A CORCORAN PRESIDENT OF MARTIN MARIETTA'S ELECTRONICS GROUP SAID THE DIVISION NEEDS TO ELIMINATE UNNECESSARY COSTS EVERYWHERE THEY EXIST HE ADDED THAT THE DIVISION IS STUDYING OTHER CONSOLIDATION MOVES INCLUDING THE CLOSURE OF ADDITIONAL FACILITIES 9308110066 930811 THE FINAL PAY DAYS OF LAWRENCE WALSH BY BYRON YORK INDEPENDENT COUNSEL LAWRENCE WALSH HAS FINALLY SENT HIS REPORT ON THE IRANCONTRA AFFAIR TO THE PANEL OF THREE FEDERAL JUDGES THAT APPOINTED HIM ACCORDING TO THE GOVERNMENT PRINTING OFFICE THE COST OF PRODUCING THE FIRST 400 COPIES OF THE 1500PAGE REPORT WAS AN ESTIMATED 15000 MANY MORE COPIES WILL BE PRINTED OF COURSE AFTER THIS FIRST EDITION IS REVIEWED AND CORRECTED WHATEVER THE TOTAL COST COMES TO PUBLISHING MR WALSH'S REPORT WILL BE AMONG THE FINAL EXPENSES IN AN INVESTIGATION THAT HAS COST 35 MILLION BY MR WALSH'S COUNT UP TO 100 MILLION IN THE ESTIMATES OF HIS CRITICS TO LEARN HOW MR WALSH SPENT SOME OF THAT MONEY I REQUESTED THROUGH THE FREEDOM OF INFORMATION ACT HIS OFFICE'S FINANCIAL RECORDS FOR THREE MONTHS OF THIS YEAR THE DOCUMENTS SHOW THE WALSH OFFICE TO BE A COMFORTABLE BUREAUCRACY WHERE HIGHLY PAID EMPLOYEES ENJOY ALL THE THINGS GOVERNMENT WORK CAN PROVIDE INCLUDING PARKING AS FOR THE MAN HIMSELF THE RECORDS REVEAL THE HABITS INGRAINED BY 6 1/2 YEARS OF UPSCALE COMMUTING THE ACCOUNTING DIVISION OF THE ADMINISTRATIVE OFFICE OF THE US COURTS KEEPS TRACK OF IRANCONTRA SPENDING EACH MONTH MR WALSH IS REQUIRED TO SUBMIT A STATUS OF FUNDS REPORT TO THE OFFICE LISTING ALL HE HAS SPENT IN THE PREVIOUS MONTH AND TOTALS FOR ALL EXPENSES SINCE BEGINNING THE INVESTIGATION IN 1986 A FEW OF THOSE TOTALS THROUGH THE END OF MAY 1993 APPEAR IN A BOX NEARBY THESE ALONG WITH MILLIONS OF DOLLARS SPENT IN OTHER CATEGORIES BROUGHT THE OFFICIAL ENDOFMAY TOTAL FOR MR WALSH'S INVESTIGATION TO 3505204162 AT LEAST 1 MILLION HAS BEEN ADDED SINCE THEN AS THE SALARY FIGURE NEARLY 18 MILLION SHOWS THE PAY HAS ALWAYS BEEN GOOD IN THE WALSH OFFICE THE BENEFITS TOO ACCORDING TO PAYROLL DOCUMENTS MR WALSH EMPLOYED ABOUT 45 STAFFERS DURING THE MONTHS OF MARCH APRIL AND MAY OF THIS YEAR AS THE INVESTIGATION WOUND DOWN IN PREVIOUS YEARS MR WALSH HAS EMPLOYED AS MANY AS 32 LAWYERS AND MORE THAN 50 INVESTIGATORS NOT TO MENTION SUPPORT STAFF NEARLY ALL OF THE 45 STAFFERS WERE CLASSIFIED AS TEMPORARY EMPLOYEES THE GOVERNMENT'S TEMPORARY EMPLOYEES ARE USUALLY THOSE WHO HAVE JOBS THAT LAST ONE YEAR OR LESS SUCH WORKERS RECEIVE NO BENEFITS A FACT THAT WAS PAINFULLY PUBLICIZED RECENTLY WHEN A NATIONAL PARK SERVICE WORKER COLLAPSED AND DIED WHILE CLEANING UP AFTER WASHINGTON'S FOURTH OF JULY CELEBRATION THE MAN HAD WORKED FOR THE GOVERNMENT EIGHT YEARS BUT HAD NEVER HAD A PERMANENT JOB JUST A SERIES OF ONEYEAR EXTENSIONS HIS FAMILY WAS NOT ELIGIBLE FOR ANY BENEFITS UNTIL AN EMBARRASSED CONGRESS STEPPED IN THE WALSH OFFICE MADE SURE ITS HIGHLY PAID LAWYERS WOULD NOT FACE ANY SUCH PROBLEMS WHILE STILL TEMPORARY WORKERS MANY HAVE RECEIVED APPOINTMENTS OF ONE YEAR AND ONE DAY WHICH MAKES THEM ELIGIBLE FOR A GENEROUS SET OF BENEFITS ALL THIS ADDS UP IF WE ANNUALIZE FROM THE PAYCHECKS DURING THE PERIOD UNDER REVIEW AT LEAST SEVEN WALSH STAFFERS EARNED MORE THAN 100000 A YEAR ON TOP OF THAT SEVERAL OF THOSE COST THE GOVERNMENT MORE THAN 600 PER PAY PERIOD IN MEDICAL INSURANCE LIFE INSURANCE AND SAVINGS BENEFITS SEVERANCE PAY HAS ALSO BECOME A HOT ISSUE AT THE WALSH OFFICE IN LATE JUNE AFTER SOME WALSH STAFFERS INQUIRED WHETHER THEY WOULD BE ELIGIBLE FOR SEVERANCE WHEN THE LONG INVESTIGATION ENDED THE GAO RULED THAT SOME OF THEM WOULD INDEED BE EVEN THOUGH THEIR JOBS WERE LISTED AS TEMPORARY APPOINTMENTS FROM THE BEGINNING OF THE INVESTIGATION THROUGH THE END OF MAYWITH DOZENS STILL ON THE STAFF MR WALSH HAD SPENT 24238250 IN TERMINAL LEAVE PAY WHICH SOMETIMES INCLUDES MONEY FOR UNUSED VACATIONS THAT SUM IS SURE TO GROW OTHER NUMBERS ARE PILING UP TOO THIS YEAR MR WALSH MOVED TO NEW OFFICES ON M STREET IN DOWNTOWN WASHINGTON IN PREVIOUS YEARS HE HAD OPERATED OUT OF A BUILDING AT 13TH AND F STREETS THAT ONE CONGRESSIONAL CRITIC CALLED ONE OF THE NEWEST MOST LUXURIOUS AND MOST EXPENSIVE OFFICE BUILDINGS IN WASHINGTON FOR EACH OF HIS MOVES MR WALSH HAS USED THE SERVICES OF THE DEPARTMENT OF JUSTICE WAREHOUSE EARLY THIS YEAR A WALSH STAFFER NOTICED THAT THE OFFICE HAD NOT BEEN ASKED TO PAY FOR THE LATEST MOVE THIS OFFICE HAS NEVER BEEN BILLED FOR ANY OF THESE SERVICES SHE WROTE IN AN INTERNAL MEMO ANOTHER 1997836 WAS THUS ADDED TO THE WALSH TOTAL THE RECORDS ALSO REVEAL DETAILS ABOUT MR WALSH'S MUCH PUBLICIZED TASTE FOR FIRSTCLASS TRAVEL THEY SHOW A MAN WHO HAS SOFTENED THE ROUTINE OF COMMUTING BY ENJOYING THE PERKS OF A CHIEF EXECUTIVE ON MONDAY MARCH 8 A LITTLE AFTER 2 PM MR WALSH LEFT HIS OKLAHOMA CITY HOME AS HE HAS ON HUNDREDS OF MONDAYS SINCE THE INVESTIGATION BEGAN MR WALSH TOOK A TAXI TO THE AIRPORT AND CAUGHT DELTA FLIGHT 870 TO DALLAS AND ON TO WASHINGTON AS USUAL HE SAT IN SEAT 3A FIRST CLASS HE ARRIVED AT NATIONAL AIRPORT A LITTLE BEFORE 9 PM AND TOOK A TAXI TO THE WATERGATE HOTEL AS USUAL HE SETTLED INTO ROOM 1418 ONE OF THE HOTEL'S EXECUTIVE SUITES THE NEXT DAY TUESDAY HE ORDERED A ROOMSERVICE BREAKFAST FOR 2115 HE LEFT THE HOTEL SOMETIME AFTER 10 AM WAS BACK BY 6 PM AND ORDERED A ROOM SERVICE DINNER FOR 4011 WEDNESDAY WAS MUCH THE SAME 2115 FOR BREAKFAST AND 4011 FOR DINNER THURSDAY ACCORDING TO HOTEL PHONE BILLS MR WALSH APPARENTLY STAYED IN HIS ROOM MOST OF THE DAY CALLING THE OFFICE EVERY COUPLE OF HOURS AS USUAL BREAKFAST WAS 2115 DINNER FOR A CHANGE WAS 3790 FRIDAY MORNING HE ATE ANOTHER 2115 BREAKFAST CHECKED OUT AND CAUGHT DELTA FLIGHT 605 AT 150 PM SITTING AGAIN IN SEAT 3A FIRST CLASS HE ARRIVED IN OKLAHOMA CITY A LITTLE BEFORE 6 PM MR WALSH'S HOTEL BILL FOR THE WEEK INCLUDING TAXES AND 9116 IN PHONE CALLS CAME TO 88197 THAT SOUNDS LIKE A LOT AND IT IS BUT IT WAS ALSO AN AMAZING BARGAIN ACCORDING TO THE WATERGATE RESERVATION OFFICE ROOM 1418 THE EXECUTIVE SUITE COSTS 470 A NIGHT MR WALSH WAS BILLED AT A 128 RATE HOW DOES HE DO IT I CAN'T GIVE YOU INFORMATION ON A GUEST SAYS IBRAHIM FAHMY EXECUTIVE VICE PRESIDENT OF THE WATERGATE COULD I GET SUCH A SWEET DEAL FOR ROOM 1418 NO SAYS MR FAHMY BUT ALL RATES ARE NEGOTIABLE EVEN WITH SUCH A BARGAIN MR WALSH'S LIVING EXPENSES EXCEED GOVERNMENTMANDATED PERDIEM ALLOWANCES HIS VOUCHERS SHOW HE PUTS IN FOR THE MAXIMUM ALLOWABLE SUBSISTENCE REIMBURSEMENT OF 144 A DAY FOR HIS HOTEL AND MEALS HIS WATERGATE COSTS RUN ABOUT 210 PER DAY ACCORDING TO A SPOKESMAN MR WALSH PERSONALLY PAYS THE DIFFERENCE HE HASN'T ALWAYS PAID SO MUCH IN AN AUDIT LAST OCTOBER THE GAO CHIDED MR WALSH FOR SPENDING MORE THAN THE GOVERNMENT'S NORMALLY ALLOWED PER DIEM ACCORDING TO THE GAO MR WALSH RESPONDED THAT HE DOES NOT BELIEVE THAT THESE REQUIREMENTS APPLY TO INDEPENDENT COUNSELS AS A MATTER OF LAW HE REFERRED THE GAO TO A SENATE DOCUMENT THAT SAYS THAT INDEPENDENT COUNSELS MIGHT HAVE TO DEVIATE FROM THESE RULES TO ACCOMPLISH THEIR MISSIONS WHICH INCLUDE QUICKLY ESTABLISHING A NEW OFFICE AND PROCEEDING EXPEDITIOUSLY ON A HIGHPRIORITY CRIMINAL CASE AT THE TIME MR WALSH WAS SIX YEARS INTO THE IRANCONTRA INVESTIGATION THE INDEPENDENT COUNSEL REAUTHORIZATION ACT OF 1993 IS CURRENTLY IN CONGRESS IF PASSED IT WOULD IMPOSE SOME FINANCIAL CONTROLS NOT KNOWN IN THE WALSH YEARS IT WOULD REQUIRE INDEPENDENT COUNSELS TO COMPLY WITH JUSTICE DEPARTMENT SPENDING POLICIES AND TO ACT WITH DUE REGARD FOR EXPENSE IT WOULD REQUIRE THEM TO FOLLOW FEDERAL TRAVEL EXPENSE LAWS AFTER ONE YEAR IN OFFICE INDEPENDENT COUNSELS AND STAFF WOULD NOT BE ENTITLED TO TRAVEL OR SUBSISTENCE EXPENSES WHEN WORKING IN A CITY DIFFERENT FROM THE ONE IN WHICH THEIR PRIMARY OFFICE IS LOCATED STAB AT WALSH THIS SEEMS A DIRECT STAB AT MR WALSH WHO ALWAYS LISTED HIS PRIMARY DUTY STATION AS OKLAHOMA CITY EVEN THOUGH A GAO AUDIT FOUND HE SPENT ONLY 27 OF HIS OFFICIAL DUTY TIME THERE HE SPENT 57 OF HIS TIME IN WASHINGTON BUT SINCE MR WALSH LISTED OKLAHOMA AS HIS BASE HE WAS ALLOWED TO CHARGE ALL THOSE PLANE FLIGHTS AND ALL THOSE NIGHTS IN THE WATERGATE TO THE TAXPAYERS THE REAUTHORIZATION BILL WOULD ALSO REQUIRE INDEPENDENT COUNSELS TO PAY STAFFERS AT A RATE COMPARABLE TO THE COMPENSATION PAID BY THE US ATTORNEY'S OFFICE IN THE DISTRICT OF COLUMBIA AND IT WOULD REQUIRE THE GAO TO DO ANNUAL AUDITS OF INDEPENDENT COUNSEL OFFICES SOMETHING THAT WASN'T DONE UNTIL MR WALSH HAD BEEN IN OPERATION SIX YEARS BY THE WAY THE TAXPAYERS' COST OF ANSWERING MY FREEDOM OF INFORMATION ACT REQUEST AND OF COPYING 339 PAGES OF DOCUMENTS WAS 4090 MR YORK IS A PRODUCER AT WRCTV THE NBC STATION IN WASHINGTON 9308110065 930811 BUSINESS BRIEF CASPEN OIL INC SHARES TO BE EXCHANGED FOR ASSETS OF GRANDNAME A EUROPEAN INVESTMENT GROUP AGREED TO EXCHANGE ABOUT 250 MILLION OF ASSETS FOR SHARES OF TINY CASPEN OIL INC LAKEWOOD COLO IN A COMPLEX MANEUVER THAT THE GROUP HOPES WILL PROVIDE AN OUTLET FOR ACQUISITIONS THE GROUP GRANDNAME LTD LONDON INITIALLY WILL RECEIVE 175 MILLION CASPEN SHARES WHICH WILL THEN GO THROUGH A REVERSE 51 STOCK SPLIT LEAVING GRANDNAME WITH 35 MILLION SHARES THE GROUP THEN HOPES TO SELL AS MANY AS 20 MILLION OF THE SHARES AT 5 EACH IN A PRIVATE PLACEMENT IN EXCHANGE CASPEN WILL RECEIVE DIVERSE ASSETS FROM GRANDNAME INCLUDING A COALWASHING SUBSIDIARY IN RUSSIA A HEALTHCARE DIVISION AND A HOST OF COUNTRYCLUB AND RESORT ASSETS ANTHONY CARROLL CHAIRMAN OF CASPEN WHICH WILL CHANGE ITS NAME TO CASPEN INTERNATIONAL INC IF THE PACT RECEIVES HOLDER APPROVAL AND IS COMPLETED SAID THE NEW CASPEN WILL PROVIDE A VEHICLE FOR ACQUISITIONS ALSO UNDER THE PACT CASPEN PREFERRED HOLDERS WILL BE ABLE TO EXCHANGE EACH OF THEIR SERIES A PREFERRED FOR 2 AND THREE NEW CASPEN SHARES 9308110064 930811 BUSINESS BRIEF MAGNETEK INC TWO STOCKHOLDERS FILE SUIT CHARGING SECURITIES VIOLATIONS TWO STOCKHOLDERS SUED MAGNETEK INC CERTAIN OF ITS OFFICERS AND THREE INVESTMENT PARTNERSHIPS CHARGING VARIOUS SECURITIES VIOLATIONS IN COMPLAINTS FILED IN FEDERAL COURT IN LOS ANGELES JOHN M PROBANDT AND SAMUEL GUN CHARGED THAT MAGNETEK FAILED TO DISCLOSE A DOWNTREND IN SALES AND PROBLEMS DEVELOPING NEW PRODUCTS MAGNETEK OFFICIALS COULDN'T BE REACHED FOR COMMENT MAGNETEK SAID LAST WEEK THAT IT EXPECTS INCOME IN ITS FOURTH QUARTER ENDED JUNE 30 TO PLUNGE 67 TO ABOUT 31 MILLION OR 12 CENTS A SHARE FROM 94 MILLION OR 38 CENTS A SHARE THE LOS ANGELES COMPANY MAKES ELECTRICAL EQUIPMENT MAGTEK PARTNERS CHAMPLAIN ASSOCIATES AND WINSTON CAPITAL PARTNERS SOLD MORE THAN SEVEN MILLION MAGNETEK SHARES IN A SECONDARY OFFERING IN MARCH THE PLAINTIFFS ALLEGE THAT THE PARTNERSHIPS KNEW ABOUT THE EARNINGS PROBLEMS AND FAILED TO DISCLOSE THAT THEIR SALES WERE TO RAISE MONEY TO PAY A JUDGMENT ARISING OUT OF THE MICHAEL MILKEN AND DREXEL BURNHAM INSIDER TRADING SCANDAL THE PARTNERSHIPS ARE PRIVATE INVESTMENTS HELD BY FORMER EMPLOYEES OF DREXEL BURNHAM LAMBERT INC THE DEFUNCT BROKERAGE FIRM AN ATTORNEY REPRESENTING THE PARTNERSHIPS SAID HE HADN'T SEEN THE SUITS AND COULDN'T COMMENT 9308110063 930811 WHO'S NEWS HILTON HOTELS DISMISSES NEW OFFICIAL AFTER QUESTIONS EMERGE ABOUT PAST TIES BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF HILTON HOTELS CORP HIRED AND THEN QUICKLY DISMISSED A CASINO DEVELOPMENT EXECUTIVE AFTER QUESTIONS WERE RAISED ABOUT HIS PAST BUSINESS ASSOCIATIONS THURSDAY HILTON ANNOUNCED THAT JOHN PAUL NICHOLS WAS APPOINTED DIRECTOR OF DEVELOPMENT FOR THE CASINO AND HOTEL COMPANY'S GAMBLING DIVISION MR NICHOLS HAD SERVED AS CHIEF EXECUTIVE OFFICER AND TRIBAL ADMINISTRATOR FOR THE CABAZON BAND OF MISSION INDIANS FROM 1979 TO 1989 HILTON SAID AND HAD BEEN HIRED TO EVALUATE OPPORTUNITIES IN THE FASTGROWING NATIVE AMERICAN CASINO BUSINESS AMONG OTHER THINGS YESTERDAY HILTON SAID MR NICHOLS WAS DISMISSED AFTER INQUIRIES FROM THE WALL STREET JOURNAL CONCERNING PAST PRESS REPORTS OF THE CABAZON TRIBE'S ALLEGED TIES TO ORGANIZED CRIME IN THE EARLY 1980S AMONG OTHER THINGS HILTON SAID ITS ROUTINE BACKGROUND INVESTIGATION OF MR NICHOLS HAD UNCOVERED NOTHING DEROGATORY AND THAT COMPANY OFFICIALS HAD ASKED MR NICHOLS WHETHER THERE WAS ANYTHING EMBARRASSING IN HIS BACKGROUND THAT THE COMPANY SHOULD KNOW IN A LETTER TO THE JOURNAL WILLIAM C LEBO JR HILTON'S GENERAL COUNSEL SAID IN PART THAT MR NICHOLS DID NOT DISCLOSE THE QUESTIONS ABOUT THE TRIBE'S BUSINESS DEALINGS THEMSELVES OR THE REPORTED ORGANIZED CRIME TIES OF THE VERY BUSINESS WHICH MR NICHOLS OVERSAW FOR SEVERAL YEARS WE ATTACH TOO MUCH IMPORTANCE TO PRESERVING OUR REPUTATION FOR INTEGRITY TO PERMIT ANY SUGGESTION OF A RELATIONSHIP HOWEVER TENUOUS BETWEN HILTON AND CRIMINAL ENTERPRISE AT THE LEAST MR NICHOLS SHOULD HAVE GIVEN HIS INTERVIEWERS THE OPPORTUNITY TO WEIGH THE PRESS REPORTS EDWARD MASRY A LAWYER FOR MR NICHOLS SAID HIS CLIENT HAS NEVER BEEN ACCUSED OR CONVICTED OF ANY CRIME AND SAID PAST REPORTS OF ALLEGED ILLEGAL ACTIVITIES CONCERNING THE TRIBE WERE MALICIOUS SLANDEROUS GOSSIP ANYTHING THAT COULD HAVE BEEN REFLECTED WAS DISCLOSED TO HILTON MR MASRY SAID JOHN PAUL NICHOLS HAS BEEN ILLEGALLY AND WRONGFULLY TERMINATED BY THE HILTON CHAIN IN VIOLATION OF HIS RIGHTS THE PRESS HAS REPORTED IN THE PAST THAT THE TRIBE'S POKER ROOM IN 1980 WAS MANAGED BY A REPUTED ORGANIZED CRIME FIGURE WHO WAS LATER DISMISSED IN 1981 THE TRIBE'S VICE CHAIRMAN ALFRED ALVAREZ AND TWO COMPANIONS WERE SHOT TO DEATH NOT LONG AFTER MR ALVAREZ HAD ALLEGED THAT MONEY WAS BEING SKIMMED FROM THE TRIBAL GAMBLING OPERATIONS TRIBAL REPRESENTATIVES HAVE SAID THAT THE MURDERS WERE UNRELATED TO THE TRIBE'S GAMBLING OPERATIONS NEWS REPORTS ALSO SURFACED ABOUT AN ALLEGED 50000 LOAN TO THE TRIBE FROM ANOTHER MAN IDENTIFIED AS AN ASSOCIATE OF ORGANIZED CRIME THE TRIBE WHICH IS LOCATED NEAR INDIO CALIF DENIED ANY IMPROPRIETIES THE CABAZON TRIBE IS BEST KNOWN FOR A LANDMARK 1987 SUPREME COURT CASE THAT ESTABLISHED THE RIGHT OF NATIVE AMERICAN TRIBES TO OFFER FORMS OF GAMBLING THAT ARE LEGAL IN THEIR STATES FOR HILTON AND OTHER GAMBLING COMPANIES PARTICULARLY THOSE THAT OPERATE IN NEVADA AND NEW JERSEY THE BUSINESS ASSOCIATIONS AND BACKGROUNDS OF ITS EXECUTIVES ARE IMPORTANT ISSUES IN QUALIFYING FOR CASINO LICENSES HILTON WAS STUNNED IN 1985 WHEN NEW JERSEY GAMBLING REGULATORS REJECTED ITS LICENSE APPLICATION BECAUSE THEY QUESTIONED THE GOOD CHARACTER AND INTEGRITY OF CERTAIN COMPANY OFFICIALS PARTICULARLY THEIR ASSOCIATIONS WITH A LABOR LAWYER WHOM LAW ENFORCEMENT OFFICIALS SAID HAD TIES TO ORGANIZED CRIME AT THE TIME THE REGULATORS ALSO EXCORIATED HILTON FOR BEING INSENSITIVE TO THOSE ISSUES IN 1991 THOUGH NEW JERSEY OFFICIALS DECLARED HILTON FIT TO RUN A CASINO THERE HILTON DOESN'T CURRENTLY OWN A NEW JERSEY CASINO BRUCE LESLIE A LAS VEGAS LAWYER SPECIALIZING IN CASINO ISSUES SAID THERE IS NO STRICT STATUTORY STANDARD FOR ISSUES OF ASSOCIATION FOR NEVADA LICENSEES SOME APPLICANTS HAVE RUN INTO PROBLEMS BECAUSE REGULATORS QUESTIONED THEIR ASSOCIATION OR ACQUAINTANCE WITH PERSONS SAID TO BE UNDESIRABLE OR TO HAVE UNSAVORY REPUTATIONS BUT THOSE MATTERS ARE SUBJECT TO INTERPRETATION IN EACH CASE GLENN FELDMAN A LAWYER REPRESENTING THE CABAZON TRIBE WAS SAID BY AN ASSISTANT TO BE EN ROUTE TO THE AIRPORT AND UNAVAILABLE FOR A COMMENT MARK NICHOLS JOHN PAUL NICHOLS'S BROTHER AND THE TRIBE'S CURRENT ADMINISTRATOR DIDN'T RETURN CALLS SEEKING A COMMENT 9308110062 930811 BEYOND THE COLD WAR FOREIGN POLICY IN THE 21ST CENTURY NATO OUT OF AREA OR OUT OF BUSINESS BY FREDERICK KEMPE BRUSSELS THE NORTH ATLANTIC TREATY ORGANIZATION MAY SHARE THE FATE OF THE EUROPEAN MONETARY SYSTEM IF IT DOESN'T TAKE SERIOUSLY THE LESSON OF THE CURRENCY SCHEME'S UNRAVELING NAMELY THAT COLD WAR IDEAS AND INSTITUTIONS CAN'T SURVIVE UNLESS THEY ADJUST RADICALLY TO POSTCOMMUNIST REALITIES MILITARY WEAKNESSES APPEAR MORE GRADUALLY AND LESS TRANSPARENTLY THAN MONETARY ONES THE SPECULATORS WHO PROFIT ARE LESS PUBLIC IN THEIR OPPORTUNISM YET THEY ARE MORE DANGEROUS IRAQ'S SADDAM HUSSEIN AND SERBIA'S SLOBODAN MILOSEVIC ACTED ONLY WHEN THEY SENSED ONE INCORRECTLY ONE CORRECTLY A LACK OF WESTERN PURPOSE NATO'S DECLARATION LAST WEEK THAT IT WAS PREPARED TO USE AIR STRIKES TO BREAK THE SERBIAN SIEGE OF SARAJEVO WAS RATHER LIKE THE CAVALRY RESOLVING TO STORM THE BATTLEFIELD AFTER THE WAR HAS BEEN DECIDED DELAYED BY LACK OF MORAL RESOLVE ALLIED DITHERING AND FAILING US LEADERSHIP THE ACTION SEEMS CALCULATED MORE TO SAVE WESTERN FACE THAN TO RESCUE BOSNIA STILL THE ALLIANCE'S MOVE MAY ALSO REFLECT A GROWING REALIZATION THAT AN UNCHANGED NATO CANNOT SURVIVE SEN RICHARD LUGAR R IND HAS SAID AS MUCH IN RECENT SPEECHES AS HAS GERMAN DEFENSE MINISTER VOLKER RUEHE BEHIND THE SCENES A NEW PAPER ON NATO'S FUTURE BY THREE AMERICAN ANALYSTS AT THE RAND CORP RONALD ASMUS RICHARD KUGLER AND F STEPHEN LARRABEE IS CAUSING THE MOST STIR ONE GERMAN DEFENSE ANALYST LIKENS IT TO GEORGE KENNAN'S FAMOUS X ARTICLE IN THE JULY 1947 ISSUE OF FOREIGN AFFAIRS OUTLINING THE POLICY OF SOVIET CONTAINMENT IN THAT IT DELIVERS A WELLARGUED STRATEGIC PLAN INTO A VOID OF VISION A SOMEWHAT WATEREDDOWN VERSION OF THE RAND PAPER TO APPEAR IN THE AUTUMN FOREIGN AFFAIRS IS STILL CONTROVERSIAL ENOUGH FOR THE AUTHORS TO STRESS THAT THEIR VIEWS AREN'T THOSE OF RAND OR ITS PREDOMINANTLY USGOVERNMENT SPONSORS THE ODDS ARE LONG THAT NATO WILL FOLLOW THE AUTHORS' BLUNT CALL FOR THE ALLIANCE TO REDEFINE THE THREAT TO EXPAND MEMBERSHIP EASTWARD AND ACCEPT AS ITS NATURAL CALLING THE PURSUIT OF SECURITY CHALLENGES OCCURRING ON ITS PERIPHERY TO DO THAT THE PAPER OUTLINES A PLAN TO MORE FULLY INTEGRATE THE FRENCH TO BRING ABOUT GERMAN STRATEGIC EMANCIPATION TO GRADUALLY EXPAND MEMBERSHIP TO HUNGARY POLAND THE CZECH REPUBLIC AND PERHAPS SLOVAKIA AND TO CREATE A 12DIVISIONSTRONG RAPID REACTION FORCE EACH TASK ALONE IS DAUNTING THE PACKAGE IS AN IMPROBABLE ONE YET IF NATO DOESN'T ADJUST SAYS THE PAPER IT WILL BECOME LIKE THE AGING KNIGHT REPLETE IN SPLENDID ARMOR IMPRESSIVE TO ADMIRE UNTIL SOMEONE ONE DAY LIFTS THE VISOR TO DISCOVER IT IS A HOLLOW SHELL NATO WILL GO OUT OF AREA OR OUT OF BUSINESS THAT PHRASE OUT OF AREA OR OUT OF BUSINESS FIRST COINED BY THE THREE AUTHORS HAS BECOME A RALLYING CRY FOR THE LIKEMINDED YET THEY STILL ARE OUTNUMBERED DECISIVE VOICES IN THE US GERMAN BRITISH AND FRENCH GOVERNMENTS AND CERTAINLY THE SMALLER COUNTRIES OF NATO HAVE MADE CLEAR THEY'LL RESIST BEING DRAGGED INTO THE COLLECTIVE DEFENSE OF NEW MEMBERS CARRYING GREATER SECURITY RISKS I JUST DON'T SEE NATO AGREEING TO THIS IN ANY FORESEEABLE FUTURE SAYS ONE OF GERMANY'S LEADING SECURITY EXPERTS UWE NERLICH WHOSE INSTITUTE IN EBENHAUSEN RECENTLY HOSTED A DEBATE ON THE PAPER MANY CONCLUDED THAT THE PAPER RISKED STARTING A DIVISIVE AND UNWINNABLE DEBATE AT A TIME WHEN THE ALLIANCE NEEDED TO CHART LESS AMBITIOUS PROGRESS THE PAPER'S EMPHASIS ON CENTRAL EUROPE AND CALL FOR CLOSER TIES TO KIEV AND ITS CRITICISM OF THOSE WHO WANT TO HOLD BACK NEW MEMBERS IN DEFERENCE TO MOSCOW IS A DIRECT AFFRONT TO A RUSSOPHILEDOMINATED CLINTON ADMINISTRATION AND THE BRITISH ARGUE THAT THE PAPER'S PROGERMAN SLANT DOESN'T LEAVE ENOUGH ROOM FOR THEM YET ALMOST ALL AGREE THAT NATO HAS TO CHANGE AND SURVIVE BECAUSE ONLY IT COULD TACKLE THE CHALLENGES THE NINENATION WESTERN EUROPEAN UNION IS STILL A DREAM AND BOTH THE CONFERENCE FOR SECURITY AND COOPERATION IN EUROPE AND THE UNITED NATIONS HAVE MEMBERSHIPS THAT ARE TOO UNWIELDY AND REMAIN TOO UNTESTED IN MILITARY AFFAIRS THE FIRST PROBLEM HOWEVER IS TO CHANGE EUROPEAN THINKING ABOUT SECURITY AFTER SO MANY YEARS OF DIVISION IT IS HARD TO CONVINCE THE PUBLIC IN EACH MEMBER COUNTRY THAT ONE PART OF THE CONTINENT CAN'T BE STABLE IF THE OTHER IS SHAKING BUT ONLY IF THESE PUBLICS APPROVE CAN NATO TRANSFORM ITSELF FROM AN ALLIANCE BASED ON COLLECTIVE DEFENSE AGAINST A THREAT INTO ONE COMMITTED TO PROJECTING DEMOCRACY AND STABILITY TO THE SOUTH AND EAST WHERE ETHNIC RELIGIOUS AND ANTIWESTERN FORCES ARE THREATENING FLEDGLING DEMOCRACIES THE AUTHORS PINPOINT THE NEW STRATEGIC CHALLENGES ALONG TWO ARCS OF CRISIS THE EASTERN ARC RUNS BETWEEN GERMANY AND RUSSIA FROM NORTHERN EUROPE DOWN THROUGH TURKEY THE CAUCASUS AND MIDDLE ASIA THE SOUTHERN ARC WHIPS THROUGH NORTHERN AFRICA AND THE MEDITERRANEAN INTO THE MIDDLE EAST AND SOUTHWEST ASIA THE IDEOLOGICAL STRUGGLE IS ONE BETWEEN THE FORCES OF INTEGRATION AND THOSE OF DISINTEGRATION AND THE AUTHORS RIGHTLY CONCLUDE THAT THIS CONFLICT WILL DECIDE EUROPE'S POLITICAL DESTINY IT FOLLOWS THAT NATO AT ITS DECEMBER SUMMIT NEEDS TO HELP AVOID THE RISE OF NATIONALISTDRIVEN MILITARY MACHINES BY OFFERING THE ALTERNATIVE OF SOME FORM OF CLOSER COOPERATION AND THE PROSPECT OF MEMBERSHIP NATO SHOULD REJECT THE TWO ARGUMENTS MOST OFTEN EVOKED AGAINST EASTWARD EXPANSION THAT LESS THAN TOTALLY STABLE DEMOCRACIES SHOULDN'T JOIN NATO AND PULL THE ALLIANCE INTO THEIR PROBLEMS AND THAT TAKING IN NONRUSSIAN MEMBERS WOULD ANGER MOSCOW AND STRENGTHEN THE HAND OF ANTIWESTERN FORCES THERE THE FIRST ARGUMENT IS EASY TO DEAL WITH WESTERN GERMANY PERHAPS WOULD NEVER HAVE BECOME A STABLE DEMOCRACY WERE IT NOT FOR THE OBLIGATIONS IT HAD AND THE SENSE OF BELONGING IT ENJOYED THROUGH NATO PORTUGAL SPAIN GREECE AND TURKEY ARE ALL STEADIER BECAUSE OF THEIR MEMBERSHIP THE RUSSIAN ARGUMENT ALSO DOESN'T HOLD WATER UNLESS ONE BELIEVES THAT BECAUSE IT UPSET RUSSIAN EXTREMISTS EASTERN GERMANY NEVER SHOULD HAVE BEEN RETURNED TO THE WESTERN WORLD YET NONE OF THIS CAN BE DONE UNLESS THE FRENCH CAN BE PRIED FROM THEIR CONCERN ABOUT US INFLUENCE OVER EUROPE AN INFLUENCE THEY THINK MUST BE COMBATTED BY THE FRENCHGERMAN PILLAR AND THE WEST EUROPEAN UNION THE FRENCH POSITION IS IN FLUX A CHANGE FUELED BY THE EUROPEAN MONETARY SYSTEM'S DE FACTO DEMISE WHEN THE BUNDESBANK WENT ITS OWN WAY AND DISREGARDED FRENCH INTERESTS THE PROCESS OF TRANSFORMING NATO COULD ALSO PROVIDE THE FRENCH THE EXCUSE AS ARCHITECTS OF THE NEW ALLIANCE TO ABANDON THEIR REFUSAL TO BECOME MILITARILY INTEGRATED AND IF THE FRENCH AND AMERICANS CAN SORT OUT THEIR DIFFERENCES IT WILL BE FAR EASIER TO WEAN GERMANY FROM THE OUTDATED INTERPRETATION OF ITS CONSTITUTION AS PROHIBITING A GERMAN MILITARY ROLE IN MULTILATERAL ACTIONS OUTSIDE ALLIANCE BORDERS SO WHAT SHOULD NATO DECIDE IN DECEMBER IN A PORTION NOT INCLUDED IN THE FOREIGN AFFAIRS VERSION THE PAPER'S AUTHORS PRESCRIBE A SHIFT OF EMPHASIS TO THE NATO CHARTER'S ARTICLE 4 FROM ARTICLE 5 ARTICLE 5 THE SOUL OF THE ALLIANCE THROUGHOUT THE COLD WAR MANDATED COLLECTIVE DEFENSE WHEN THE BORDERS OF ANY MEMBER COUNTRY WERE THREATENED THAT IS AN INCREASINGLY UNLIKELY SCENARIO THE LONGDISREGARDED ARTICLE 4 ALLOWS THE ALLIANCE OR A COLLECTION OF ITS MEMBERS TO ACT TOGETHER OUT OF AREA WHEN THEY DEEM IT NECESSARY SUCH AS IN IRAQ DURING THE GULF WAR THE RAND ANALYSTS SUGGEST THE CREATION OF AN ARTICLE 4 PREVENTATIVE DIPLOMACY AND CRISIS MANAGEMENT COMMITTEE WHICH WOULD DEVELOP POLICIES AND PROCEDURES FOR THE WORLD'S NEW THREATS IN BRIEFINGS OF EUROPEAN ANALYSTS THE AUTHORS HAVE ARGUED THAT THIS COULD BE A NATURAL ENTRY POINT FOR CENTRAL EUROPEAN AND EAST EUROPEAN STATES AND A WAY TO MORE ACTIVELY INCLUDE THE FRENCH THE NEXT STEP WOULD BE THE CREATION OF A FORCE PROJECTION COMMAND LED BY A FOURSTAR GENERAL OR ADMIRAL THIS WOULD BE A BETTER EQUIPPED AND ORGANIZED VERSION OF THE ALLIANCE'S CURRENT RAPID REACTION FORCE WHICH THE ANALYSTS CALL AN INCOHERENT HODGEPODGE OF NEARLY TEN DIVISIONS AND ASSOCIATED AIR UNITS DRAWN FROM EIGHT DIFFERENT NATIONS THE RAPID REACTION FORCE CANNOT FIGHT IN LARGE FORMATIONS NATO THE PAPER ARGUES SHOULD SHIFT FROM GROUND DEFENSE TO AIR AND NAVAL POWER AND CREATE A FORCE OF 10 TO 12 DIVISIONS AND 550 TO 750 COMBAT AIRCRAFT AND NAVAL UNITS EACH OF THE MOST IMPORTANT NATO MEMBERS WOULD PLAY A KEY ROLE THE FRENCH AND GERMANLED EUROCORPS WOULD LOOK AFTER EAST CENTRAL EUROPE A CORPS COMMANDED BY ITALY WOULD BE RESPONSIBLE FOR THE SOUTHERN TIER THE US WOULD GUIDE A CORPS FOR THE MIDEAST AND PERSIAN GULF THE BRITISH WOULD TAKE CHARGE OF A FLEXIBLE CORPS THAT COULD DEPLOY TO ALL THREE REGIONS IT IS ALL AS UNLIKELY AS IT IS LOGICAL STILL YUGOSLAVIA HAS SET WHEELS IN MOTION NATO MEMBERS ARE NOW MOVING ACRIMONIOUSLY AND INCOHERENTLY TOWARD MILITARY ACTION STRUGGLING WITH THE UN OVER QUESTIONS OF COMMAND AND CONTROL AS THE SERBS SQUEEZE SARAJEVO YUGOSLAVIA MAY BE LOST BUT THE FIGHT OVER NATO IS ONLY BEGINNING TO BOIL ONE SHUDDERS HOWEVER TO THINK OF WHAT SORT OF CRISIS IT WOULD TAKE TO FORCE A CHANGE IT WILL BE NO FORCE AS BENIGN AS THE BUNDESBANK THAT WILL CONVINCE THE ALLIANCE OF THE RISKS OF DEFENDING THE STATUS QUO MR KEMPE IS MANAGING EDITOR OF THE WALL STREET JOURNAL EUROPE 9308110061 930811 UROLOGY WAS BORING UNTIL DR SEHN MET JOHN WAYNE BOBBITT THE PATIENT'S LOSS RESTORED BY DEFT DELICATE SURGERY IS NOW THE TALK OF THE TOWN BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL MANASSAS VA UNTIL RECENTLY JAMES SEHN WAS AN ANONYMOUS PRACTITIONER OF AN UNGLAMOROUS TRADE I'M BASICALLY A PLUMBER HE SAYS OF UROLOGY A MEDICAL SPECIALTY DEVOTED TO KEEPING THE BLADDER AND RELATED ORGANS FLUSHING SMOOTHLY AT PARTIES WHEN HE WOULD TELL STRANGERS ABOUT HIS JOB THEY WOULD OFTEN RESPOND OH SUCH A PITY FOR YOU' DR SEHN RECALLS THEN THE CONVERSATION WOULD SORT OF TRAIL OFF THESE DAYS THE CONVERSATION NEVER STOPS SOON AFTER HIS NOWCELEBRATED REATTACHMENT OF A VIRGINIA MAN'S PENIS DR SEHN ARRIVED AT A COCKTAIL PARTY AND WAS GREETED BY SPONTANEOUS APPLAUSE FLUSTERED HE PROMPTLY TRIPPED OVER A POT OF TULIPS AND FELL FLAT ON HIS FACE BRUSHING HIMSELF OFF DR SEHN WAS IN FOR ANOTHER SHOCK THE PARTY POLARIZED HE RECALLS WITH WIVES IN ONE CORNER WANTING TO HEAR ALL THE HORRIFIC DETAILS AND MEN IN ANOTHER WITH THEIR HANDS UNCONSCIOUSLY COVERING THEIR GROINS EVER SINCE DR SEHN HAS BEEN BUSY DISCUSSING THE OPERATION ON NATIONAL TV ON RADIO TALK SHOWS AND IN FOREIGN MAGAZINES AS A RESULT HE HAS BECOME AN UNLIKELY AND RATHER RELUCTANT CELEBRITY ASKED WHEN HE LAST RECEIVED SUCH PUBLIC ACCLAIM THE 48YEAROLD DOCTOR PUZZLES OVER THE QUESTION BEFORE ADMITTING GEE WHIZ I GUESS WHEN I WAS VICE PRESIDENT OF THE STUDENT COUNCIL IN HIGH SCHOOL A SEMINARY HIGH SCHOOL TO BE PRECISE THE DETROIT NATIVE STUDIED FOR THE PRIESTHOOD BEFORE DECIDING TO BECOME A DOCTOR IN MEDICAL SCHOOL HE QUICKLY OPTED FOR HIS LOWPROFILE SPECIALTY AND WROTE A POSTDOCTORAL THESIS TITLED NEUROMUSCULAR ANATOMY OF THE BLADDER AND THOUGH EDUCATED AT YALE AND OXFORD HE HAS CHOSEN TO PRACTICE AT A SMALL HOSPITAL IN MANASSAS A DISTANT WASHINGTON SUBURB KNOWN FOR LITTLE EXCEPT ITS CIVIL WAR BATTLEFIELD I OUGHT THAT BEING OUT HERE IN THE COUNTRY WOULD MEAN A QUIET OBSCURE LIFE SAYS THE SOFTSPOKEN DR SEHN AN OXFORD UNIVERSITY TIE AND HORNRIMMED GLASSES DRESSING UP A WHITE DOCTOR'S COAT ALL THAT ENDED ABRUPTLY SOON AFTER DAWN ON JUNE 23 WHEN A PHONE CALL FROM THE HOSPITAL JOLTED HIM AWAKE THE MESSAGE JOHN WAYNE BOBBITT 26 YEARS OLD HAD AWAKENED A SHORT TIME BEFORE TO FIND HIS WIFE LORENA AMPUTATING HIS PENIS WITH A 12INCH KITCHEN KNIFE MRS BOBBITT 24 WAS CHARGED WITH MALICIOUS WOUNDING MR BOBBITT ACCUSED BY HIS WIFE OF RAPE HAS BEEN CHARGED WITH MARITAL SEXUAL ASSAULT BOTH CASES ARE PENDING BEFORE THE COURTS DR SEHN WHO HAPPENED TO BE ON CALL THAT NIGHT REACHED THE EMERGENCY ROOM TO FIND AN ODDLY CALM PATIENT AND EIGHT COPS SITTING AROUND WITH THEIR KNEES CROSSED HE SAYS ACCUSTOMED TO MORE MUNDANE PROBLEMS SUCH AS BLADDER INFECTIONS AND KIDNEY STONES DR SEHN SHARED SOME OF THEIR QUEASINESS LOOKING AT BEFOREANDAFTER SLIDES OF HIS PATIENT THE DOCTOR RECALLS I FELT AN OUTOFBODY SENSATION WATCHING MYSELF GO THROUGH THE USUAL REFLEXES AS A DOCTOR WHILE ON A GUT LEVEL I FELT SICK SOON AFTER THE KNIFEWIELDING WIFE CALLED THE POLICE TO SAY SHE HAD TOSSED THE DISMEMBERED ORGAN FROM A CAR WINDOW A POLICE SEARCH FOUND IT LYING IN SOME GRASS DR SEHN AND A PLASTIC SURGEON THEN SPENT MORE THAN NINE HOURS REATTACHING IT USING A MICROSCOPE TO RECONNECT MINUSCULE NERVES AND BLOOD VESSELS IT WAS THE ACCOMPLISHMENT OF A LIFETIME FOR ME SAYS DR SEHN IN FACT US SURGEONS HAVE EMPLOYED THE MICROSCOPIC TECHNIQUE USED IN THE SURGERY ONLY A HALFDOZEN TIMES OR SO TO DATE IT'S INCREDIBLE THE DOCTOR ADDS TO SEE ANATOMY AT THAT LEVEL THE FIRST MEDIA CALLS CAME IN AS HE EMERGED FROM THE OPERATING ROOM AFTER PRODDING FROM THE HOSPITAL WHICH FELT THE CASE WOULD OFFER HELPFUL PUBLICITY A RELUCTANT DR SEHN AGREED TO TALK AFTER ALL HE WAS PROUD OF HIS SURGICAL TRIUMPH AND LIKE MOST DOCTORS I'M ALWAYS ANXIOUS TO TEACH HE SAYS BUT DURING HIS FIRST LIVE INTERVIEW WITH A LAS VEGAS RADIO STATION EVERYTHING I SAID PROVOKED HOWLS OF LAUGHTER HE SAYS IT DAWNED ON ME THAT THIS WHOLE SUBJECT WAS A MINEFIELD HIS FEAR WAS QUICKLY CONFIRMED WHEN FOX NEWS TAPED A LONG INTERVIEW THEN USED ONLY HIS BRIEF COMMENT ABOUT HIS PROGNOSIS FOR THE PATIENT'S SEXUAL FUNCTION WHICH IS EXPECTED TO RETURN THEN ON HIS FIRST DAY BACK AT HIS OFFICE DR SEHN'S SECRETARY ANNOUNCED THE DAVID LETTERMAN SHOW' IS ON THE PHONE THE DOCTOR WHO USUALLY RETIRES EARLY TOOK THE PHONE AND SAID WHO'S DAVID LETTERMAN WHEN HE FOUND OUT DR SEHN SAYS I REALLY PANICKED I DIDN'T SEE MYSELF ON A MAJOR TALK SHOW AND CERTAINLY NOT DISCUSSING PENILE ANATOMY DR SEHN ASKED IF HE COULD VET QUESTIONS FIRST THE SHOW NEVER CALLED BACK BUT OTHER CALLS KEPT ROLLING IN FROM MS MAGAZINE FROM GAY TALESE WHO IS WRITING ABOUT THE CASE FOR THE NEW YORKER FROM GLOSSY JAPANESE AND ITALIAN MAGAZINES FROM THE NEW YORK TIMES SCIENCE SECTION SIX WEEKS AFTER THE SURGERY DR SEHN HAS RESUMED HIS DAILY RITUAL OF CONNECTING CATHETERS AND PROBING PROSTATES AND CORRECTING PEOPLE WHO CONFUSE HIS SPECIALTY WITH NEUROLOGY A MEDICAL FIELD CONCERNED WITH BRAINS NOT BLADDERS BUT INCESSANT TALK ABOUT THE CASE STILL TRAILS HIM EACH DAY TO HIS OFFICE ON A BLAND SUBURBAN BLOCK CONTAINING LABORATORY BOXES FILLED WITH URINE SAMPLES AND VENEREAL SMEARS ONE PATIENT EVEN BLITHELY CHATS ABOUT THE BOBBITTS AS DR SEHN GIVES HIM A VASECTOMY EAGER TO ESCAPE THE FANFARE DR SEHN RECENTLY TOOK HIS 10YEAROLD SON ON A WEST VIRGINIA RAFTING TRIP BUT AS SOON AS THEY REACHED A CAMPGROUND HIS SON BEGAN RUNNING FROM TENT TO TENT ANNOUNCING MY DAD'S FAMOUS A CROWD QUICKLY FORMED AND DR SEHN FOUND HIMSELF IN THE MIDDLE OF THE WOODS TELLING 300 STRANGERS HOW YOU DO A PENILE REPLANTATION DR SEHN HAS LEARNED TO ACCEPT SUCH RENOWN WITH POLITE BEWILDERMENT AND GRADUALLY WITH PRIDE AND A SENSE OF HUMOR AS WELL HE NOW KEEPS COPIES OF NEWS CLIPPINGS AT THE OFFICE AND PASSES THEM OUT TO CURIOUS PATIENTS ONE RECENT NIGHT AT HIS HOME IN THE ROLLING HILLS OF RURAL VIRGINIA DR SEHN ANSWERS THE PHONE AT 10 PM TO YET ANOTHER RADIO SHOW WANTING ALL THE DETAILS OF HIS RECENT SURGERY YES IT IS POSSIBLE TO BLEED TO DEATH FROM THIS SORT OF INJURY THE DOCTOR SAYS AS HIS WIFE ACCUSTOMED TO SUCH INTERRUPTIONS KEEPS SERVING UP FRUIT PIE OTHER FAMILY MEMBERS HAVE ALSO HAD TO ADJUST NOT LONG AGO DR SEHN'S SISTER IN OKLAHOMA PHONED A LOCAL RADIO STATION SEEKING A COPY OF A TAPED INTERVIEW WITH HER BROTHER SHE SUDDENLY FOUND HERSELF ON THE AIR AND FIELDING QUESTIONS AMONG THEM AND WHAT DO YOUR LITTLE CHILDREN CALL THAT PART OF THE ANATOMY THE CASE IF IT HAS MEANT FAME HASN'T YET MEANT FORTUNE FOR DR SEHN HE HASN'T BEEN PAID FOR THE SURGERY AND AT BEST THE PUBLICITY HAS GAINED HIM A FEW NEW PATIENTS MEANWHILE THE BOBBITTS HAVE BOTH HIRED ENTERTAINMENT LAWYERS TO HANDLE THEIR STORIES FOR MR BOBBITT WHO IS UNINSURED A DEAL FOR BOOK TV OR MOVIE RIGHTS MIGHT HELP HIM MEET MEDICAL BILLS THAT COULD TOTAL 50000 DR SEHN SAYS HE NEVER EXPECTED THE CASE TO MAKE HIM THE NEXT TOM CRUISE BUT THERE IS ONE SORT OF EXPOSURE HE INVITES IT WOULD BE EXCITING HE SAYS TO WRITE ABOUT MY PATIENT'S RECOVERY IN THE JOURNAL OF UROLOGY 9308110060 930811 BUSINESS BRIEF NORTHSTAR HEALTH SERVICES INC CONCERN TO ACQUIRE PROVIDER OF REHABILITATION SERVICES NORTHSTAR HEALTH SERVICES INC SAID IT SIGNED AN AGREEMENT TO ACQUIRE PRIVATELY HELD NW REHABILITATION ASSOCIATES INC A PROVIDER OF PHYSICAL AND OCCUPATIONAL THERAPY AND REHABILITATION SERVICES NORTHSTAR SAID IT WILL BUY NW REHABILITATION FOR CASH NOTES AND NORTHSTAR COMMON STOCK THE PRICE WASN'T DISCLOSED BOTH CONCERNS ARE BASED IN PITTSBURGH THE PROVIDER OF MULTIDISCIPLINARY THERAPY SERVICES SAID THE TRANSACTION IS SUBJECT TO AN AUDIT AND OTHER CONDITIONS A COMPANY SPOKESMAN WOULDN'T COMMENT ON THOSE CONDITIONS NW REHABILITATION OPERATES SIX OUTPATIENT CLINICS AS WELL AS CONTRACT STAFFING AND REHABILITATION SERVICES AT 17 LONGTERM CARE FACILITIES HOSPITALS AND FREESTANDING OUTPATIENT CENTERS NORTHSTAR WITH 1992 SALES OF ABOUT 37 MILLION SAID THE ACQUISITION IF COMPLETED WOULD INCREASE REVENUE ABOUT 71 AND BOOST ITS STAFF 60 9308110059 930811 LEISURE & ARTS DANCE OUT OF AFRICA BY LOURDES LEE VALERIANO NEW YORK FIRST YOU HEAR THE DRUMS THEN YOU SEE A SWAYING PROCESSION OF PAINTED BEFEATHERED GRASSSKIRTED CHILDREN THEIR ENTRANCE IS ALMOST SOLEMN LIKE A RITUAL AND SEEMS TO TAKE FOREVER BUT THEN THE NEXT 40 MINUTES PASS IN A BLUR AS THESE CONFIDENT PRACTITIONERS OF AFRICAN DANCE SOME AS YOUNG AS FIVE LEAP SHAKE AND GENERALLY TAKE COMMAND OF THE STAGE IN A STUNNING SOLO A BOY ABOUT 12 YEARS OLD AND ALL LEGS SHIMMIES TO THE FOREGROUND HIS HIPS CIRCLE FURIOUSLY TO THE CONGA DRUMS' INTRICATE RHYTHMS AS HE EXECUTES AN ENERGETIC ROUTINE OF JUMPS TURNS AND FOOTWORK THAT A HIPHOP ARTIST WOULD ENVY THEN HE FINISHES BY TOUCHING A FINGER TO HIS TONGUE WITH GREAT DELIBERATION IS IT A MESSAGE A BOW THE AUDIENCE DOESN'T KNOW BUT IT'S AN ARRESTING MOMENT THESE CHILDREN ARE MEMBERS OF BATOTO YETU AN AFRICANDANCE COMPANY CAREFULLY NURTURED IN A CHURCH BASEMENT IN HARLEM IN THREE YEARS BATOTO YETU WHICH IS SWAHILI FOR OUR CHILDREN HAS GROWN TO ABOUT 40 CORE DANCERS AND HAS TAUGHT OVER 100 OTHER CHILDREN FROM ALL PARTS OF THE CITY THE TROUPE ALSO HAS GONE FROM SATURDAY PRACTICE SESSIONS AT A CITY PARK TO THE BROOKLYN ACADEMY OF MUSIC SESAME STREET AND EVEN IN THE SEPTEMBER VANITY FAIR ONE OF THOSE ETHNICALLY CHIC GAP ADS THE ARTIST BEHIND BATOTO YETU IS JULIO LEITAO WA KABUAYA A 27YEAROLD DANCER BORN IN THE KATANGA REGION OF ZAIRE HIS FAMILY FLED TO ANGOLA IN 1967 WHEN HE WAS TWO THEN FLED AGAIN TO ZAMBIA WHEN CIVIL WAR TORE ANGOLA APART IN 1975 BEFORE REACHING PORTUGAL AS REFUGEES HE CAME TO NEW YORK AT 19 TO STUDY JULIO AS HE IS KNOWN TO THE CHILDREN OF THE COMPANY AND THEIR PARENTS IS A LEAN MAN WITH FLASHING EYES HE STUDIED JAZZ AND BALLET BUT LEARNED AT HIS MOTHER'S FEET THE AFRICAN DANCES THAT HE NOW HANDS DOWN TO HIS CHARGES IN HARLEM BUT BATOTO YETU IS MORE THAN JUST A DANCE COMPANY ANY CHILD CAN JOIN DANCE INSTRUCTION IS FREE THE TROUPE'S DRUMMERS GIVE CONGA LESSONS TO THE YOUNGSTERS AND THE OLDER CHILDREN TEACH THE NEWCOMERS UNTIL THEY'RE JUDGED READY TO DANCE WITH THE COMPANY THE CHILDREN ALSO RECEIVE TUTORING LESSONS IN SPEECH AND DICTION BLACK AND AFRICAN HISTORY CLASSES AND COUNSELING MOST OF THE INSTRUCTION COMES FROM PARENTVOLUNTEERS INDEED IN MR LEITAO'S VISION DANCE IS MERELY THE MAGNET THAT DRAWS THE CHILDREN TO BATOTO YETU'S OTHER OFFERINGS WE'RE NOT HERE TO MAKE DANCERS HE SAYS FIRMLY OUR GOAL IS TO HAVE HEALTHY SELFSUFFICIENT RESPONSIBLE CHILDREN THAT VISION DIDN'T EXIST AT THE BEGINNING THE WHOLE ENTERPRISE STARTED RATHER NONCHALANTLY IN 1990 MR LEITAO AFTER STINTS AT VARIOUS COMPANIES IN NEW YORK BEGAN GIVING FREE DANCE LESSONS TO CHILDREN IN A PARK I JUST HAD FUN WITH THE KIDS HE SAYS PERFORMANCES AT COMMUNITY EVENTS BROUGHT RECRUITS LATE THAT YEAR THE GROUP WAS ALLOWED TO HOLD PRACTICES AT ST MARY'S EPISCOPAL CHURCH IN HARLEM THOUGHTS ABOUT YOUTH DEVELOPMENT ONLY CAME LATER MANY OF THE CHILDREN ARE FROM LOWINCOME SINGLEPARENT FAMILIES AS I WENT ALONG I HAD A VERY PERSONAL RELATIONSHIP WITH THE CHILDREN I WANTED TO HELP IN ANY WAY I CAN MR LEITAO SAYS THAT'S WHAT LED TO US BECOMING AN ORGANIZATION THE GROUP LAST YEAR STARTED GETTING SMALL GRANTS TO DEVELOP A PROGRAM MR LEITAO RECENTLY ACQUIRED A COMPUTER TO KEEP TRACK OF THE KIDS AND HAS STARTED TO DRAW SALARIES FROM BATOTO YETU BUT THE REST OF THE STAFF ARE STILL PARENT VOLUNTEERS ELIZABETH ZAMBRANA A CROSSING GUARD WHOSE DAUGHTERS RAQUEL AND KRISTINA DANCE IN THE COMPANY KEEPS ATTENDANCE WINSTON COLLYMORE AN ELEMENTARY SCHOOL TEACHER WHOSE SIXYEAROLD DAUGHTER IFE IS ALSO A DANCER GIVES THE LESSONS IN AFRICAN HISTORY AND CULTURE CHERYL HARRIS WHOSE TWO CHILDREN WERE WITH THE ORIGINAL GROUP IN THE PLAYGROUND IS GENERAL MANAGER PARENTS ALSO MAKE THE CHILDREN'S COSTUMES RAFFIA SKIRTS AND BEADED FEATHER HEADRESSES AND IT'S STILL THE DANCE THAT KEEPS THE KIDS COMING VINCENT ELEAZAR THE 12YEAROLD WITH THE SOLO AND HIS MOTHER TAKE THE TWOHOUR SUBWAY RIDE FROM CONEY ISLAND EACH SATURDAY FOR THE 10 AM TO 3 PM SESSIONS THAT START WITH LESSONS AND END WITH TWO HOURS OF DANCING I LIKE IT BECAUSE I LIKE TO PERFORM SAYS RAQUEL ZAMBRANA A PETITE NINEYEAROLD WHO HAS A KNACK FOR THE CONGA DRUMS THE TROUPE HAS A COTERIE OF SUPPORTERS UNUSUAL FOR A COMMUNITY DEVELOPMENT PROJECT DRAWN BY ITS ETHNIC CACHET A FASHION INDUSTRY AGENT WHO SAW A PERFORMANCE LAST SUMMER SUGGESTED BATOTO YETU AS A SUBJECT FOR HIGHFASHION PHOTOGRAPHER PATRICK DEMARCHELIER HENCE THE SHOOT FOR THE GAP AD FOR WHICH A GAGGLE OF DANCERS IN RAFFIA BODY PAINT AND UNETHNIC POCKET T SHIRTS LAST APRIL BATOTO YETU STAGED A FUNDRAISER IN A DOWNTOWN PHOTOGRAPHER'S STUDIO BEFORE AN AUDIENCE STUDDED WITH FILM STARS AND THEIR CHILDREN AND WILLOWY MODELS IN TAILORED KENTE CLOTH THESE APPEARANCES ARE A FAR CRY FROM ST MARY'S SPARTAN BASEMENT ONE RECENT SATURDAY THE CHILDREN ARE FIDGETY DURING THE HISTORY DISCUSSIONS BUT PERK UP WHEN REHEARSALS BEGIN MR LEITAO CUTS A STRIKING FIGURE IN A BLACK TSHIRT AND MULTICOLORED PANTS WITH A RAFFIA SKIRT AROUND HIS WAIST AND ORANGE LEGWARMERS AROUND HIS ANKLES HE LEADS A BOISTEROUS WARMUP TO BOUNCY ZAIREAN MUSIC THE CHILDREN FOLLOW WITH PRACTICED EASE THEIR GESTURES BECOMING FREER AS THE WARMUP A MIXTURE OF AFRICAN DANCE MOVES AND REGULAR STRETCHING TECHNIQUES GOES ON MOTHERS SIT ON FOLDING METAL CHAIRS COATS ON THEIR LAPS AND GYM BAGS AT THEIR FEET THE YOUNGER AND NEWER CHILDREN WHO AREN'T YET READY TO PERFORM JUMP AND BOB AMONG THEM MIMICKING THE ACTIONS OF THE PERFORMERS WITHOUT EMBARRASSMENT THAT AFTERNOON THE TROUPE DANCES TO CONGA DRUMS AND A CHISEKO A DEEPSOUNDING NIGERIAN DRUM MR LEITAO IS CONSTANTLY IN MOTION JUMPING UP TO EXHORT THE PERFORMERS TO DANCE WITH GREATER ABANDON OR TO DEMONSTRATE AN ATTITUDE DURING THE MIME SEQUENCES WHEN THE REHEARSAL FINALLY BREAKS OVER TWO HOURS AFTER IT STARTED A GROUP OF THE SMALLEST PERFORMERS CLUSTER AROUND A SET OF NOWSILENT CONGA DRUMS THEY START POUNDING A SURPRISINGLY STRONG BEAT PROVIDING ACCOMPANIMENT TO MOTHERS SWEEPING RAFFIA STRANDS OFF THE FLOOR MR LEITAO SAYS HE PLANS TO TEACH THE YOUNGSTERS OTHER KINDS OF DANCE LIKE JAZZ BUT ONLY TO SHOW THEM THE CONNECTION TO AFRICAN DANCE THE REPERTORY WILL REMAIN STRICTLY AFRICAN AND BASICALLY ZAIREAN BUT HE GROWS STUBBORN AT ANY ATTEMPT TO DISCUSS BATOTO YETU JUST IN TERMS OF PERFORMANCE AND DANCE TECHNIQUE IN AFRICA DANCE IS EDUCATION AND CULTURE NOT ENTERTAINMENT HE SAYS YOU CANNOT TEACH THEM ABOUT DANCE WITHOUT TEACHING THEM ABOUT WHAT THE SONG SAYS ABOUT THE HISTORY OTHERWISE IT WOULD BE TAKING THE DANCE OUT OF CONTEXT LIKE DISPLAYING AFRICAN MASKS IN A GALLERY AN AFRICAN MASK BY ITSELF IS LIKE A CHILD WITHOUT A MOTHER HE SAYS MS VALERIANO IS A REPORTER IN THE JOURNAL'S NEW YORK BUREAU 9308110058 930811 TECHNOLOGY BRIEF LAM RESEARCH CORP PROFIT MORE THAN DOUBLED DURING FISCAL 4THQUARTER LAM RESEARCH CORP FREMONT CALIF CITING GROWTH IN THE CHIP BUSINESS AND ITS INCREASING MARKET SHARE OF SEMICONDUCTORMAKING EQUIPMENT SAID FISCAL FOURTHQUARTER NET INCOME DOUBLED TO 63 MILLION OR 39 CENTS A SHARE FROM 31 MILLION OR 20 CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED JUNE 30 THE MAKER OF CHIPMAKING EQUIPMENT SAID REVENUE GREW A RECORD 83 TO 845 MILLION FROM 462 MILLION A YEAR EARLIER LAM RESEARCH SAID IT WILL HAVE A 3FOR2 STOCK SPLIT FOR SHAREHOLDERS OF RECORD AUG 20 TO BE DISTRIBUTED SEPT 15 AFTER THE SPLIT THE COMPANY WILL HAVE ABOUT 232 MILLION SHARES OUTSTANDING 9308110057 930811 POLITICS & POLICY WHITE HOUSE AIDE LISTED TROUBLES IN SHREDDED NOTE BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A TORNUP NOTE LEFT BY A SENIOR WHITE HOUSE AIDE WHO KILLED HIMSELF LAST MONTH DESCRIBED A MAN DEEPLY TROUBLED BY CRITICISM INCLUDING THAT IN THE EDITORIAL PAGES OF THE WALL STREET JOURNAL IN THE NOTE RELEASED YESTERDAY BY GOVERNMENT AUTHORITIES VINCENT FOSTER JR THE FORMER DEPUTY WHITE HOUSE COUNSEL DISCLOSED HIMSELF TO BE UPSET BY A WIDE RANGE OF THINGS RELATED TO HIS HIGHPRESSURE JOB FROM PARTISAN ATTACKS BY REPUBLICANS TO SEVERAL ASPECTS OF AN INCIDENT IN WHICH THE WHITE HOUSE FIRED ITS TRAVEL STAFF HE ALLEGED THAT THE WHITE HOUSE'S USHERS OFFICE WHICH HANDLES HOUSEKEEPING AT THE EXECUTIVE MANSION WAS OVERCHARGING PRIVATE DONORS ON REDECORATING TAKING ADVANTAGE OF HILLARY RODHAM CLINTON AND HER ARKANSASBASED DECORATOR KAKI HOCKERSMITH HE ALSO SUGGESTED THAT THE FEDERAL BUREAU OF INVESTIGATION HAD LIED IN A REPORT TO THE ATTORNEY GENERAL APPARENTLY ABOUT ITS CONTACTS WITH THE WHITE HOUSE OVER THE TRAVEL OFFICE AFFAIR THE JUSTICE DEPARTMENT SAID IT IS INVESTIGATING BOTH ALLEGATIONS A WHITE HOUSE SPOKESMAN SAID HE DOUBTED THEY WERE TRUE MR FOSTER ALSO TOOK AIM AT THE PRESS AND IN PARTICULAR THE WALL STREET JOURNAL WHICH RAN A SERIES OF EDITORIALS TAKING HIM ALONG WITH SEVERAL OF HIS ASSOCIATES WHO ALSO CAME WITH THE PRESIDENT FROM ARKANSAS TO TASK FOR CRONYISM THE WSJ EDITORS LIE WITHOUT CONSEQUENCE THE NOTE STATES THEN IT ENDS I WAS NOT MEANT FOR THE JOB OR THE SPOTLIGHT OF PUBLIC LIFE IN WASHINGTON HERE RUINING PEOPLE IS CONSIDERED SPORT THE JOURNAL'S EDITOR ROBERT L BARTLEY SAID IN A STATEMENT THE TEXT OF MR FOSTER'S NOTE SUGGESTS THAT HE WAS DEEPLY DISTRAUGHT OVER A VARIETY OF ISSUES AT THIS TIME WE HAVE NOTHING TO ADD TO OUR LAST EDITORIAL OF AUGUST 6 IF WE FIND REASON TO COMMENT IN THE FUTURE WE WILL DO SO IN OUR OWN EDITORIAL COLUMNS IN THE AUG 6 EDITORIAL THE JOURNAL DEFENDED ITS EARLIER CRITICISM OF MR FOSTER SAYING THERE IS NO WAY TO COVER NATIONAL GOVERNMENT ON THE ASSUMPTION THAT A HIGH OFFICIAL AND STEELED LITIGATOR SECRETLY SUFFERS FROM DEPRESSION AND MAY COMMIT SUICIDE IF CRITICIZED THE FBI AND THE US PARK POLICE CONCLUDED THAT MR FOSTER A WELLREGARDED LAWYER FROM LITTLE ROCK WHO TOOK A LOT OF THE RESPONSIBILITY FOR WHITE HOUSE MISSTEPS ON HIMSELF COMMITTED SUICIDE ON JULY 20 THE DAY HE WAS FOUND DEAD OF A SINGLE GUNSHOT IN A VIRGINIA PARK OVERLOOKING THE POTOMAC RIVER HIS SISTER IDENTIFIED THE 1913 PISTOL USED AS PART OF THEIR FATHER'S COLLECTION THE NOTE WRITTEN IN MR FOSTER'S NEAT SCRIPT ON A SHORT YELLOW LEGAL PAD WAS FOUND NEARLY A WEEK LATER TORN INTO 27 OR 28 PIECES IN A BRIEFCASE IN MR FOSTER'S WHITE HOUSE OFFICE FEDERAL OFFICIALS AT A NEWS CONFERENCE YESTERDAY CRITICIZED THE WHITE HOUSE COUNSEL BERNARD NUSSBAUM FOR INSISTING THAT HE AND HIS STAFF AND NOT THE FBI OR PARK POLICE HANDLE THE SEARCH OF MR FOSTER'S OFFICE A 30HOUR DELAY BETWEEN THE FINDING OF THE NOTE AND TURNING IT OVER TO THE POLICE AUTHORITIES HOWEVER WAS DESCRIBED AS REASONABLE BY ROBERT BRYANT SPECIAL AGENT IN CHARGE OF THE FBI'S WASHINGTON FIELD OFFICE THE FOLLOWING NOTE WAS FOUND IN VINCENT FOSTER'S BRIEFCASE ON JULY 26 I WAS NOT MEANT FOR THE JOB OR THE SPOTLIGHT OF PUBLIC LIFE IN WASHINGTON HERE RUINING PEOPLE IS CONSIDERED SPORT 9308110056 930811 BUSINESS BRIEF BANCO ESPANOL DE CREDITO BANK RAISES 674 MILLION IN FIRST TWO PHASES OF PLAN SPAIN'S BANCO ESPANOL DE CREDITO KNOWN AS BANESTO SAID IT RAISED 9490 BILLION PESETAS 674 MILLION IN THE FIRST TWO PHASES OF ITS MASSIVE THREETIERED CAPITAL INCREASE BANESTO CHAIRMAN MARIO CONDE SAID AT A NEWS CONFERENCE THAT THE BANK RAISED 5265 BILLION PESETAS IN THE FIRST STAGE A 3FOR1 RIGHTS ISSUE IN WHICH BANESTO ISSUED 35 MILLION NEW SHARES IN THE SECOND PHASE BANESTO RAISED 4225 BILLION PESETAS THROUGH THE PLACEMENT OF 222 MILLION NEW SHARES AMONG US SPANISH AND PORTUGUESE INVESTORS IN THE THIRD STEP WHICH MR CONDE SAID WILL GET UNDER WAY IN SEPTEMBER BANESTO PLANS TO OFFER ON INTERNATIONAL MARKETS 5560 BILLION PESETAS IN CONVERTIBLE BONDS 9308110055 930811 YIELDS ON CDS ISSUED BY BANKS AND BROKERS CHANGE LITTLE IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS CREPT UP TO 274 FROM 273 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 476 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS EASED TO 307 FROM 312 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLIPPED TO 470 FROM 471 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE INCHED UP TO 281 FROM 279 ON FIVEYEAR JUMBOS THE AVERAGE SLID TO 481 FROM 482 ACCORDING TO BANXQUOTE 9308110054 930811 INTERNATIONAL BRITISH AIRWAYS PRETAX PROFIT DECLINES BUT STOCK RISES ON NEARTERM OUTLOOK BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL A ONEDAY STRIKE AND HIGHER INTEREST PAYMENTS CONTRIBUTED TO A 31 SLIDE IN BRITISH AIRWAYS PLC'S PRETAX PROFIT FOR THE FISCAL FIRST QUARTER BUT AN ENCOURAGING STATEMENT FROM THE COMPANY PUSHED ITS STOCK TO A NEW HIGH PRETAX PROFIT FOR THE QUARTER ENDED JUNE 30 WAS 63 MILLION 939 MILLION DOWN FROM 91 MILLION A YEAR EARLIER NET INCOME FELL TO 54 MILLION OR 69 PENCE A SHARE FROM 70 MILLION OR 92 PENCE A SHARE THE RESULTS WERE IN LINE WITH ANALYSTS' FORECASTS DESPITE THE DECLINE BRITISH AIRWAYS STOCK JUMPED 4 TO 350 PENCE FROM 3355 PENCE ON THE LONDON STOCK EXCHANGE FOLLOWING THE CHAIRMAN'S STATEMENT ON COST CUTTING AND STRONG INCOMEPERPASSENGER FIGURES THE PREVIOUS HIGH WAS 345 PENCE ON AUG 3 THE GROUP CONTINUES TO MAKE SATISFACTORY PROGRESS IN ITS PROFITIMPROVEMENT PROGRAM BRITISH AIRWAYS CHAIRMAN SIR COLIN MARSHALL SAID NOTING THAT HE EXPECTS COSTS FOR THE CURRENT QUARTER TO REMAIN IN LINE WITH LAST YEAR'S LEVELS SOME ANALYSTS INTERPRETED THAT STATEMENT AS FORESHADOWING GOOD RESULTS FOR THE SECOND QUARTER THE AIRLINE SAID INCOME PER PASSENGER OR YIELD ROSE 23 PER KILOMETER FLOWN DESPITE A DECLINE IN FIRSTCLASS AND BUSINESSCLASS PASSENGERS BRITISH AIRWAYS ATTRIBUTED THE RISE TO THE DEVALUATION OF THE POUND WHICH INCREASED THE VALUE OF TICKETS SOLD IN FOREIGN CURRENCIES WITH COSTS DOWN AND INCOME UP ANALYSTS GREW INCREASINGLY BULLISH ON THE COMPANY KNOWN AS EUROPE'S MOST PROFITABLE AIRLINE THE RECENT INDICATIONS FROM SWISSAIR AND OTHERS IS THAT THINGS ARE GETTING WORSE OUT THERE SAID ANALYST MARK MCVICAR OF NATWEST MARKETS BUT IT'S DIFFERENT FOR BRITISH AIRWAYS BASICALLY THE WAY WE LOOK AT THIS IS THAT TRAFFIC IS ACCELERATING YIELDS ARE IMPROVING AND THEY'VE CLEARLY GOT COSTS UNDER CONTROL HE ADDED FOLLOWING TUESDAY'S RESULTS ANALYSTS PREDICTED A FULLYEAR PRETAX PROFIT OF BETWEEN 300 MILLION AND 350 MILLION FOR BRITISH AIRWAYS THAT MEANS THE STOCK DESPITE HITTING A NEW HIGH IS TRADING AT A PRICE/EARNINGS RATIO OF ABOUT 11 WHICH SOME ANALYSTS CONSIDER INEXPENSIVE STILL AS THE PROFIT SLIDE INDICATES EVERYTHING WITH THE AIRLINE ISN'T PERFECT THE PRETAX PROFIT DROP IS DESPITE A 125 RISE IN OPERATING PROFIT TO 108 MILLION FROM 96 MILLION A YEAR EARLIER ONE SIGNIFICANT FACTOR BEHIND THE DECLINE IN THE PRETAX FIGURE WAS A ONEDAY STRIKE ON JUNE 4 ALTHOUGH THE COMPANY WAS UNABLE TO BREAK OUT THE STRIKE'S COST ANALYSTS ESTIMATE IT TRIMMED AT LEAST 20 MILLION FROM PRETAX PROFIT THE OTHER MAJOR FACTOR HOLDING BACK PROFIT WAS A HUGE SURGE IN NET INTEREST PAYMENTS TO 42 MILLION IN THE QUARTER FROM 8 MILLION A YEAR EARLIER THE AIRLINE SAID THIS RESULTED FROM AIRCRAFT PURCHASES AND THE PARTIAL COST OF INVESTMENTS IN OTHER AIRLINES WORLDWIDE 9308110053 930811 NORTHWEST AIRLINES CANCELS ORDERS FOR TWO BOEING JETS ST PAUL MINN NORTHWEST AIRLINES CANCELED ORDERS VALUED AT ABOUT 300 MILLION FOR TWO BOEING CO 747 JUMBO JETS THE AIRLINE HAD BEEN SCHEDULED TO RECEIVE THIS SUMMER A BOEING SPOKESMAN SAID THE CANCELLATIONS WERE UNUSUAL BECAUSE THE PLANES ARE FINISHED WE'RE TALKING TO A COUPLE OF DIFFERENT PEOPLE INTERESTED IN BUYING THEM HE SAID AIRLINES TYPICALLY PAY A PENALTY FOR CANCELLATIONS BOEING CONFIRMED THAT NORTHWEST WILL PAY SOMETHING IN THIS CASE BUT DECLINED TO DISCUSS SPECIFICS NORTHWEST IS A UNIT OF CLOSELY HELD WINGS HOLDINGS INC LATE LAST YEAR FINANCIALLY STRAPPED NORTHWEST CANCELED 35 BILLION IN ORDERS FOR AIRBUS INDUSTRIE JETS AND AT THE SAME TIME DELAYED DELIVERY DATES FOR 27 BILLION IN ORDERS FOR BOEING CRAFT 9308110052 930811 WORLD MARKETS LONDON SHARES RETREAT FROM RECORD HEIGHTS TOKYO PRICES END FLAT AS POLITICIANS SEEK COURSE A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES SLOWED FROM THEIR RECORDSETTING PACE TO FINISH LOWER YESTERDAY FELLED BY WEAK CHEMICAL AND INSURANCE SECTORS AND A BEARISH FUTURES MARKET TOKYO STOCK PRICES FINISHED LITTLE CHANGED TUESDAY DESCENDING FROM GAINS AFTER A JAPANESE NEWS REPORT DEFLATED HOPES FOR AN INCOMETAX CUT WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10929 DOWN 037 REFLECTING LOWER AMERICAN AND EUROPEAN MARKETS AND HIGHER ASIA/PACIFIC MARKETS OIL DRILLING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13184 UP 230 OR 18 WITH ARABIAN OIL OF JAPAN POSTING A 42 GAIN IN ITS LOCAL CURRENCY ADVANCED TECHNOLOGY/MEDICAL DEVICES STOCKS TRAILED AT 5825 DOWN 158 OR 26 WITH STRYKER OF THE US SLIDING 32 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SHED 148 POINTS TO 29716 THE FT 30STOCK INDEX SLID 142 POINTS TO 23603 VOLUME WAS 7719 MILLION SHARES COMPARED WITH 5253 MILLION SHARES A DAY EARLIER IN THE ABSENCE OF NEW BRITISH ECONOMIC DATA THE BOURSE WAS VULNERABLE TO THE FUTURES MARKET THE 100STOCK INDEX OPENED HIGHER BUT TURNED DOWN WHEN THE SEPTEMBER STOCKINDEX FUTURES CONTRACT'S MOMENTUM SPUTTERED PARTICIPANTS WEREN'T SURPRISED THAT STOCKS FELL GIVEN THE MARKET'S 61 GAIN SINCE JULY 21 AND TWO ALLTIME CLOSING HIGHS SET IN THE PREVIOUS TWO SESSIONS WHICH LED MANY INVESTORS TO REEL IN PROFITS IN FRANKFURT STOCKS EASED IN EXTREMELY QUIET DEALINGS THE DAX 30STOCK INDEX FELL 714 POINTS TO 186516 WHICH ALSO WAS THE SESSION'S LOW FINANCIAL ISSUES DROPPED AFTER SCORING GAINS RECENTLY METAL ENGINEERING AND CHEMICAL SHARES ROSE THOUGH THE REASON WASN'T APPARENT IN THE ABSENCE OF MARKETMOVING NEWS IN PARIS STOCKS ENDED SLIGHTLY HIGHER AFTER A LATE BURST OF BUYING LED BY COMPUTER PROGRAMS THOUGH THE SUMMER HOLIDAYTHINNED MARKET CONTINUED TO FEEL PRESSURE WHILE INVESTORS AWAITED BOLD ACTION BY FRANCE TO CUT INTEREST RATES AMSTERDAM'S RALLY CONTINUED THOUGH SOME PROFITTAKING SET IN LEAVING STOCKS ONLY SLIGHTLY HIGHER MADRID SHARE PRICES EDGED UP AFTER A WEAK OPENING TURNING AROUND AS THE SPANISH PESETA LOST GROUND AGAINST THE US DOLLAR WHICH SPURRED FOREIGN BUYING OF BLUE CHIPS IN STOCKHOLM FOLLOWING BIG ADVANCES DURING THE PAST MONTH THAT PROPELLED THE MARKET TO SEVERAL 1993 HIGHS STOCKS FELL IN HEAVING TRADING IN AN EXPECTED CONSOLIDATION UNTIL SWEDISH BLUECHIP COMPANIES START POSTING HALFYEAR EARNINGS SOON AND IN ZURICH STOCKS TUMBLED IN ACTIVE TRADING DRIVEN LOWER BY FUTURESRELATED HEDGING THAT PROMPTED A SELLOFF OF SHARES WITH BANKING AND CHEMICAL ISSUES HIT THE HARDEST UNRELENTING PRICE DROPS TRIGGERED STOPLOSS ORDERS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 13501 POINTS MONDAY EDGED UP JUST 070 POINT TO 2049375 NEAR THE INTRADAY LOW OF 2047635 ON WEDNESDAY THE NIKKEI ROSE 15972 POINTS TO CLOSE THE MORNING SESSION AT 2065347 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 280 MILLION SHARES UP FROM 1872 MILLION SHARES A DAY EARLIER GAINERS OUTNUMBERED LOSERS 524415 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 442 POINTS MONDAY ADDED 221 TO 166122 SHARE PRICES ROSE SHARPLY AT THE OPENING ON COMMENTS LATE MONDAY BY NEW JAPANESE FINANCE MINISTER HIROHISA FUJII THAT INDICATED HIS DESIRE TO SEE INCOME TAXES EVENTUALLY COME DOWN BUT UNCERTAINTY ABOUT POLICIES OF THE NEW JAPANESE GOVERNMENT LED ARBITRAGERS AND DEALERS WHO HAD LED MORNING PRICE BOOSTS TO TAKE PROFITS AND CLOSE OUT POSITIONS AND INTRADAY GAINS DISAPPEARED ON A WIRE SERVICE HEADLINE THAT NEW PRIME MINISTER MORIHIRO HOSOKAWA BELIEVED THE ENVIRONMENT ISN'T RIGHT FOR AN INCOMETAX REDUCTION STRONG GAINS CONTINUED FOR COMMUNICATIONS AND HIGHTECHNOLOGY SHARES LINKED TO EXPECTED JAPANESE GOVERNMENT SPENDING ON PROJECTS SUCH AS TELECOMMUNICATIONS SYTEMS IMPROVEMENTS IN SYDNEY EQUITIES CLIMBED ON A HIGHER GOLD PRICE THE PREVIOUS DAY'S RISE IN US SHARES AND STRONG INTEREST IN INDUSTRIAL ISSUES IN SINGAPORE SHARES SURGED IN HEAVY TRADING ON POSITIVE ECONOMIC DATA THE 101 GROWTH IN THE SECOND QUARTER WAS MUCH BETTER THAN EXPECTED STOCKS ALSO GOT A KICK FROM THE GOVERNMENT'S DISCLOSURE JUST BEFORE THE MARKET OPENED THAT THE FINANCIAL SERVICES SECTOR GREW 20 IN THE QUARTER IN HONG KONG PRICES INITIALLY ROSE BUT PROFITTAKING SET IN AND STOCKS SKIDDED IN MANILA STOCKS RALLIED FUELED PARTY BY A POPULAR INITIAL PUBLIC OFFERING IN SEOUL SHARES SNAPPED A THREESESSION LOSING STREAK AND SURGED ON EXPECTATIONS OF A RESUMPTION OF ACTIVE BUYING BY INSTITUTIONS AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AIRWAYS SOARED 145 PENCE OR 43 TO A RECORD 350 PENCE 522 PRETAX PROFIT FOR THE FIRST QUARTER ENDED JUNE 30 DROPPED 31 TO 63 MILLION 939 MILLION FROM A YEAR EARLIER AMID INTENSE COMPETITION AND FEWER PASSENGERS PAYING PREMIUM FARES BUT THE STOCK JUMPED ON THE CARRIER'S STATEMENT THAT IT IS WELLPOSITIONED TO TAKE ADVANTAGE OF IMPROVED PROSPECTS FOR THIS YEAR AND NEXT YEAR IN FRANKFURT VEBA SLIPPED 60 PFENNIGS TO 40450 MARKS 23833 THE TRADING CHEMICAL AND ENERGY COMPANY'S FIRSTHALF PROFIT DECLINED 13 TO 316 MILLION MARKS 189 MILLION VEBA PREDICTED A SIMILAR TREND FOR THE SECOND HALF AND AN IMPROVEMENT IN 1994 AS A RESULT OF COSTCUTTING IN SYDNEY CSR LOST 12 CENTS OR 29 TO 407 AUSTRALIAN DOLLARS US277 THE STOCK HAS GIVEN UP 45 CENTS SINCE FRIDAY WHEN THE BUILDING MATERIALS AND SUGAR REFINING COMPANY SAID IT PLANNED TO APPEAL A US2 MILLION JUDGMENT IN AN ASBESTOS CASE LAST WEEK SEPARATELY CSR FORMED A JOINT VENTURE WITH ED&F MAN OF BRITAIN AND A QUEENSLAND STATE SUGAR GROWERS COOPERATIVE TO REFINE AND DISTRIBUTE SUGAR TO AUSTRALIAN AND EXPORT MARKETS IN MILAN STOCKS FELL BROADLY ON SENTIMENT BATTERED BY SUSPENSIONS IN DEALINGS IN THE AGROINDUSTRIAL CONGLOMERATE FERRUZZI FINANZIARIA WHICH LAST TRADED AT 419 LIRE 26 US CENTS AND IN ITS MONTEDISON CHEMICAL UNIT WHICH WAS AT 7695 LIRE THE SUSPENSIONS PRECEDED FERRUZZI'S ANNOUNCEMENT OF AN 85 WRITEDOWN IN CAPITAL TO 205 BILLION LIRE 1271 MILLION FERRUZZI ALSO DISCLOSED WIDER LOSSES FOR THE FIRST FIVE MONTHS OPERATING CONTROL OF THE COMPANY HAS BEEN HANDED OVER TO CREDITOR BANKS THAT ARE TRYING TO FORM A RESTRUCTURING PACKAGE TO COPE WITH HUGE DEBTS 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 9308110051 930811 BUSINESS BRIEF ICH CORP FIRM SELLS CMO SECURITIES TO FUND AMERICA INVESTORS ICH CORP SAID IT COMPLETED THE SALE OF INTERESTONLY AND RESIDUALINTEREST COLLATERALIZED MORTGAGE OBLIGATIONS WITH A CARRYING VALUE OF 1457 MILLION TO FUND AMERICA INVESTORS CORP II A DENVER PRIVATE FINANCE COMPANY THE CARRYING VALUE IS THE VALUE OF THE SECURITIES ON ICH'S BALANCE SHEET ICH A LOUISVILLE KY INSURANCE HOLDING COMPANY SAID THAT AS A RESULT OF THE TRANSACTION IT WILL TAKE A CHARGE OF ABOUT 16 MILLION IN THE THIRD QUARTER ICH SAID HOWEVER THAT IT WILL BE PARTIALLY OFFSET BY GAINS TOTALING 12 MILLION FROM THE SALE OF SECURITIES ICH SAID FUND AMERICA DEPOSITED THE CMOS IT PURCHASED FROM THE COMPANY AS WELL AS 1777 MILLION IN ADDITIONAL SECURITIES IN A TRUST AND FINANCED THE PURCHASES THROUGH A PUBLIC OFFERING OF THE TRUST'S CLASS F1 AND CLASS B PASSTHROUGH CERTIFICATES SERIES 1993C ICH RECEIVED NET CASH PROCEEDS OF 615 MILLION AND 755 MILLION PRINCIPAL AMOUNT OF THE CLASS B CERTIFICATES ICH CHAIRMAN ROBERT L BEISENHERZ SAID THE SALE HAS SIGNIFICANTLY REDUCED OUR HOLDINGS AND HAS VIRTUALLY ELIMINATED ICH'S EXPOSURE TO PRINCIPAL WRITEDOWNS RESULTING FROM THE PREPAYMENT RISKS ASSOCIATED WITH THESE TYPES OF CMOS 9308110049 930811 OTC FOCUS PROFITTAKING DEFLATES FOURDAY RALLY LEAVING PRICES MIXED IN LIGHT TRADING BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A FOURDAY RALLY ON THE NASDAQ MARKET HIT A WALL OF PROFITTAKING LEAVING OVERTHECOUNTER PRICES MIXED IN FAIRLY LIGHT TRADING THE NASDAQ COMPOSITE INDEX EDGED 141 POINTS OR 020 LOWER TO 71708 AFTER FOUR CONSECUTIVE RECORDSETTING CLOSES ADVANCING ISSUES NARROWLY BEAT OUT DECLINERS HOWEVER 1478 TO 1386 VOLUME WAS SLOW AND SOME TRADERS SAID INVESTORS ARE CAUGHT IN LIMBO MARKET PLAYERS HAD BEEN HEAVILY FOCUSED ON THE FATE OF PRESIDENT CLINTON'S BUDGET PACKAGE NOW THAT THE BILL HAS RECEIVED CONGRESSIONAL APPROVAL AND BEEN SIGNED INTO LAW BY THE PRESIDENT EQUITIES SEEM TO BE DEPENDING ON JULY PRODUCER PRICE AND CONSUMER PRICE DATA OUT TOMORROW AND FRIDAY TO PROVIDE MORE DIRECTION TOTAL NASDAQ NATIONAL MARKET VOLUME WAS 216887100 SHARES UP SLIGHTLY FROM YESTERDAY'S LACKLUSTER LEVEL OF 201374000 SHARES THE MARKET HAD A LITTLE BIT OF A HANGOVER AFTER THE BUDGET BILL PASSING SAID BARRY BERMAN HEAD OF EQUITY TRADING AT ROBERT W BAIRD & CO WITH THE CPI AND PPI COMING OUT IT WAS A GOOD EXCUSE FOR THE MARKET TO TAKE A BREATHER BIG BOARD SHARES ENDED MOSTLY LOWER THE DOW JONES INDUSTRIAL AVERAGE FELL 335 POINTS OR 009 TO 357273 BROADER INDICES SUCH AS THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX AND THE STANDARD & POOR'S 500STOCK INDEX ALSO RETREATED BUT ADVANCERS NARROWLY BEAT OUT DECLINING STOCKS STOCKS DIDN'T GET MUCH HELP FROM THE BOND MARKET YESTERDAY AS PRICES WERE MIXED BUT THE LONG BOND CLIMBED MORE THAN 1/4 OF A POINT DEPRESSING ITS YIELD TO ABOUT 644 ANOTHER HISTORIC LOW BUT ALFRED E GOLDMAN DIRECTOR OF TECHNICAL RESEARCH AT AG EDWARDS & SONS SAID THAT ALL TRENDS ARE POSITIVE IN THE NASDAQ MARKET PEOPLE ARE RELIEVED THAT THE DEFICITPACKAGE IS ON THE TABLE WHETHER YOU LOVE IT OR YOU HATE IT AT LEAST YOU KNOW WHAT THE DEVIL IS MR GOLDMAN EXPECTS THE OTC MARKET AS MEASURED BY THE NASDAQ COMPOSITE INDEX TO CONTINUE ITS RALLY INTO THE FALL THE TECHNICIAN PROJECTS THE BAROMETER WILL SLOWLY CRAWL TO THE 740 LEVEL BY THE MIDDLE OF NEXT MONTH WE'RE IN A SLUGGISH SEGMENTED ECONOMIC RECOVERY HE SAID IF YOU WANT TO MAKE HAY YOU BUY THE SMALLERSIZED COMPANIES OR THOSE WITH A UNIQUE POSITION OR UNIQUE PRODUCTS MOST OF THESE ARE FOUND ON THE NASDAQ SOME MARKET WATCHERS HAVE SUGGESTED THAT INVESTORS ARE STARTING TO REFOCUS THEIR ATTENTION ON THE HEALTHCARE SYSTEM OVERHAUL PACKAGE SCHEDULED FOR RELEASE LATE NEXT MONTH THEY SAY CONTINUED UNCERTAINTY ABOUT THE DETAILS OF THE PLAN AND WORRIES THAT THE UNVEILING MIGHT AGAIN BE DELAYED COULD CAUSE APPREHENSION IN THE MARKET HEALTHMAINTENANCEORGANIZATION STOCKS SLIPPED ON SELLING PRESSURE CAUSED PRIMARILY BY JITTERS OVER THE HEALTHCARE PLAN OXFORD HEALTH PLANS TUMBLED 4 1/4 TO 71 MID ATLANTIC MEDICAL SLID 2 3/8 TO 23 7/8 FHP INTERNATIONAL SLUMPED 1 3/8 TO 23 1/8 AND US HEALTHCARE LOST 1 3/8 TO 46 3/8 ALEX BROWN RATING CHANGES SENT ATLANTIC SOUTHEAST AIRLINES UP 1 5/8 TO 32 1/4 AND COMAIR HOLDINGS DOWN 5/8 TO 31 THE BROKERAGE FIRM UPGRADED ATLANTABASED ATLANTIC SOUTHEAST TO STRONG BUY FROM BUY AND DOWNGRADED COMAIR OF CINCINNATI TO BUY FROM STRONG BUY ALDILA A SAN DIEGO GOLFCLUB SHAFT MAKER ROSE 3 TO 32 1/4 FOLLOWING AN ALEX BROWN UPGRADE TO BUY FROM NEUTRAL 9308110048 930811 BUSINESS BRIEF BRINKER INTERNATIONAL INC RESTAURANT OPERATOR'S PROFIT ROSE 39 IN ITS 4TH QUARTER BRINKER INTERNATIONAL INC A DALLAS RESTAURANT COMPANY SAID ITS NET INCOME ROSE 39 TO 146 MILLION OR 30 CENTS A SHARE IN ITS FOURTH QUARTER ENDED JUNE 30 NET INCOME A YEAR EARLIER WAS 105 MILLION OR 22 CENTS A SHARE FOURTHQUARTER REVENUE ROSE 31 TO 1851 MILLION FROM 1413 MILLION A YEAR EARLIER THE EARNINGS WERE AT THE HIGH END OF ANALYSTS' PROJECTIONS BRINKER SHARES WERE UNCHANGED AT 3675 YESTERDAY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE BRINKER HAD 367 RESTAURANTS OPEN AS OF JUNE 30 COMPARED WITH 305 A YEAR EARLIER FOURTHQUARTER SALES WERE UP 54 AT RESTAURANTS OPEN AT LEAST A YEAR THE COMPANY SAID THAT IN THE CURRENT FISCAL YEAR IT PLANS TO OPEN 30 COMPANYOPERATED CHILI'S RESTAURANTS AND AS MANY AS 18 FRANCHISED CHILI'S UNITS ALONG WITH AS MANY AS EIGHT GRADY'S RESTAURANTS 15 ROMANO'S RESTAURANTS AND SIX SPAGEDDIES ITALIAN RESTAURANTS 9308110047 930811 TECHNOLOGY & HEALTH UNINSURED SUFFERED HIGHER DEATH RATE OVER 16YEAR PERIOD RESEARCHERS FIND BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A STUDY THAT FOLLOWED NEARLY 5000 PEOPLE FOR UP TO 16 YEARS FOUND THAT THOSE WHO LACKED HEALTH INSURANCE DIED AT A RATE 25 HIGHER THAN THOSE WHO WERE INSURED THE REPORT WHICH RESEARCHERS SAY IS THE FIRST NATIONALLY BASED STUDY TO LOOK AT THE RELATIONSHIP BETWEEN HEALTH INSURANCE STATUS AND DEATH RATES UNDERSCORES THE PLIGHT OF THE NATION'S 35 MILLION UNINSURED JUST AS THE CLINTON ADMINISTRATION PREPARES TO UNVEIL A HEALTH PROGRAM AIMED AT EXTENDING THEM COVERAGE PREVIOUS RESEARCH HAS LINKED LACK OF INSURANCE TO POOR ACCESS TO HEALTH SERVICES AND TO POORER HEALTH OUTCOMES SUCH AS PREMATURE BIRTHS THE CURRENT REPORT DOCUMENTS THE LOGICAL RESULT OF SUCH CONDITIONS HIGHER DEATH RATES INDEED THE IMPACT OF HAVING NO INSURANCE WAS SIMILAR TO THAT FOR SUCH FACTORS AS LACK OF HIGH SCHOOL EDUCATION AND LOW INCOMESOCIOECONOMIC FACTORS THAT HAVE LONG BEEN ASSOCIATED WITH POOR HEALTH STATUS AND HIGHER DEATH RATES RESEARCHERS SAID WE LOOKED AT A NATIONALLY REPRESENTATIVE SAMPLE OF PEOPLE WHO WERE INSURED AND UNINSURED AND SAW WHAT HAPPENS TO THEM OVER A LONG PERIOD OF TIME SAID MARTHE GOLD DIRECTOR OF SPECIAL STUDIES AT THE US PUBLIC HEALTH SERVICE'S OFFICE OF DISEASE PREVENTION AND HEALTH PROMOTION WASHINGTON DC AND AN AUTHOR OF THE STUDY THE RESEARCHERS LED BY PETER FRANKS OF THE DEPARTMENT OF FAMILY MEDICINE AT THE UNIVERSITY OF ROCHESTER ROCHESTER NY USED DATA FROM INTERVIEWS AND PHYSICAL EXAMINATIONS CONDUCTED FOR THE NATIONAL HEALTH AND NUTRITION EXAMINATION SURVEY BETWEEN 1971 AND 1975 AND DETERMINED FROM FOLLOWUP REPORTS FROM THAT PROJECT WHETHER THE SUBJECTS OF THE INTERVIEWS WERE ALIVE OR DEAD IN 1987 THE RESEARCHERS FOUND THAT BY 1987 18 OF THE UNINSURED GROUP HAD DIED COMPARED WITH 96 OF THOSE WHO WERE INSURED WHEN THEY ADJUSTED THE FINDINGS FOR OTHER CONTRIBUTING FACTORS SUCH AS EDUCATION INCOME HEALTH STATUS AND WHETHER THE PEOPLE SMOKED THE RESEARCHERS SAID A LACK OF HEALTH INSURANCE EXPLAINED 25 OF THE HIGHER DEATH RATES AMONG THE UNINSURED IT IS LIKELY THAT THE INSURANCE STATUS OF MANY PEOPLE BOTH INSURED AND UNINSURED CHANGED FROM THEIR INITIAL REPORT IN THE STUDY RESEARCHERS SPECULATED THAT THE LIKELY EFFECT OF THE CHANGES WAS TO UNDERESTIMATE THE IMPACT OF HAVING NO COVERAGE 9308110046 930811 BUSINESS BRIEF UNITED TECHNOLOGIES CORP PRATT & WHITNEY TO REPLACE TURBINE BLADE IN ENGINES UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY UNIT SAID IT WILL REPLACE A HIGHPRESSURE TURBINE BLADE IN ENGINES THAT POWER MCDONNELL DOUGLAS CORP'S WIDEBODIED LONGDISTANCE AIRCRAFT PRATT & WHITNEY DECIDED ON THE ACTION AFTER A BLADE BROKE IN TWO SWISSAIR PLANES DURING TAKEOFF FORCING THEM TO RETURN TO THE AIRPORT IN BOTH INSTANCES THE BLADE BROKE UNDER THE ENGINE'S HIGH PRESSURE AND TEMPERATURE GENERATED AT TAKEOFF THE ENGINE KNOWN AS PW4000 HAS BEEN IN PRODUCTION SINCE 1987 IT POWERS THE MD11 PLANES IN SWISSAIR'S FLEET PRATT & WHITNEY SAID IT STARTED TO NOTICE EXCESSIVE WEAR IN THE BLADE SOME MONTHS AGO AND ADVISED AIRLINES TO UNDERTAKE EXTRA INSPECTION THE COMPANY SAID THAT SINCE DISCOVERING THE PROBLEM IT HAS DEVELOPED A TURBINE BLADE WITH A SPECIAL COATING THAT CAN WITHSTAND HIGHER TEMPERATURES GENERATED IN SOME OF THE HIGHTHRUST ENGINES AT TAKEOFF 9308110045 930811 MANAGEMENT IGNORING AN OLD TABOO BIG COMPANIES TAP OUTOFWORK EXECUTIVES FOR TOP JOBS BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL OUT IS IN UNEMPLOYED EXECUTIVES LONG SPURNED BY COMPANIES AND RECRUITERS AS DAMAGED GOODS ARE INCREASINGLY BECOMING PRIME PROSPECTS FOR CORPORATE AMERICA'S TOP JOBS CONSIDER EASTMAN KODAK CO SEEKING A NEW CHIEF FINANCIAL OFFICER IT RECENTLY WOOED RICHARD MILLER ACCORDING TO ONE INFORMED INDIVIDUAL BUT MR MILLER JOBLESS SINCE HE QUIT THE HELM OF COMPUTER MAKER WANG LABORATORIES INC IN JANUARY SPURNED KODAK'S OVERTURES INSTEAD HE JOINED AMERICAN TELEPHONE & TELEGRAPH CO THIS MONTH AS EXECUTIVE VICE PRESIDENT AND CFO MR MILLER DECLINES TO COMMENT AS DOES KODAK SINCE JUNE METROGOLDWYNMAYER INC RIGGS NATIONAL CORP AND ALZA CORP AMONG OTHERS HAVE TAPPED OUTOFWORK EXECUTIVES FOR SENIOR POSTS AT THE SAME TIME RECRUITERS SAY THEY ARE BUSY TRYING TO ATTRACT HIGHLY QUALIFIED BUT UNEMPLOYED EXECUTIVES AMONG THEM RICHARD J MARKHAM PRESIDENT OF MERCK & CO UNTIL HE RESIGNED IN JULY VAUGHN D BRYSON OUSTED IN JUNE AS CHIEF EXECUTIVE OFFICER OF RIVAL DRUG MAKER ELI LILLY & CO PAUL W STERN WHO STEPPED DOWN AS CHAIRMAN AND CEO OF CANADIAN TELEPHONEEQUIPMENT MAKER NORTHERN TELECOM LTD EARLIER THIS YEAR AND KARL VON DER HEYDEN WHO QUIT IN LATE MAY AS CFO COCEO AND COCHAIRMAN OF RJR NABISCO HOLDINGS CORP THE ONCESTRONG TABOO AGAINST HIRING UNEMPLOYED EXECUTIVES IS FADING BECAUSE DOWNSIZING MERGERS AND INCREASED BOARDROOM ACTIVISM HAVE CREATED A VASTLY EXPANDED POOL OF JOBLESS EXECUTIVES THERE IS A TREMENDOUS INVENTORY OF HIGHLY TALENTED EXECUTIVES WHO ARE BETWEEN SITUATIONS' SAYS WINDLE PRIEM A KORN/FERRY INTERNATIONAL RECRUITER WHO SPECIALIZES IN THE FINANCIALSERVICES INDUSTRY I HAVE BEEN IN THIS BUSINESS 17 YEARS AND IT IS AS HIGH NOW AS I HAVE EVER SEEN IT RECRUITER CANNY BOWEN INC SAYS IT NOW RECEIVES 350 UNSOLICITED RESUMES A WEEK FROM JOBLESS MANAGERS UP FROM 100 A WEEK A YEAR AGO THE DELUGE PARTLY EXPLAINS WHY THE NEW YORK FIRM OFTEN PRESENTS COMPANIES WITH TWO OR THREE UNEMPLOYED CONTENDERS AMONG A SLATE OF SIX FINALISTS SAYS CARL W MENK CHAIRMAN ABOUT 80 OF CORPORATE CLIENTS WILL CONSIDER JOBLESS CANDIDATES UP FROM JUST 20 A FEW YEARS AGO HE SAYS FOUR OTHER SEARCH FIRMS DESCRIBE SIMILAR EXPERIENCES SOME MAJOR COMPANIES ARE RADICALLY SWITCHING GEARS ON THE ISSUE TAKE TELEDYNE INC THE AEROSPACE AND MANUFACTURING CONGLOMERATE WHICH RECRUITS EXECUTIVES ON ITS OWN HAS LONG AVOIDED OUTPLACEMENT COUNSELING FIRMS AS A SOURCE OF EXECUTIVES SAYS LEROY N RASPA MANAGER OF EXECUTIVE PLACEMENT FOR THE LOS ANGELES COMPANY WE STILL WOULD PREFER TO LOOK AT PEOPLE WHO ARE EMPLOYED MR RASPA SAYS BUT WE ARE LOOKING INTO THE USE OF OUTPLACEMENT FIRMS TO FILL JOBS WE WILL HAVE AT THE MIDDLE MANAGEMENT LEVEL IN THE AFTERMATH OF A SWEEPING REALIGNMENT ANNOUNCED LAST MONTH HE ADDS TELEDYNE HAS SAID IT IS SHRINKING THE NUMBER OF OPERATING COMPANIES TO 21 FROM 65 AND ELIMINATING 1200 MANAGEMENT AND SUPPORT JOBS IT WILL OFFER OUTPLACEMENT AID TO SOME OF ITS DISPLACED EMPLOYEES I HAVE BEEN SEEING THE MASSIVE LAYOFFS GOING ON EVERYWHERE MR RASPA CONTINUES YOU REALIZE THERE ARE SOME GOOD PEOPLE BEING PUT INTO OUTPLACEMENT THE WHOLE WORKPLACE HAS CHANGED HE DECLINES TO SPECIFY HOW MANY MANAGERIAL VACANCIES MAY RESULT FROM THE REALIGNMENT IN OTHER CASES WILLINGNESS TO HIRE THE JOBLESS GROWS ONCE A COMPANY FILLS A SENIOR POSITION WITH AN UNEMPLOYED EXECUTIVE THAT HAPPENED AT RIGGS NATIONAL BANK WHICH BROUGHT IN PAUL HOMAN AS ITS PRESIDENT AND CEO IN JUNE MR HOMAN A WELLREGARDED TURNAROUND SPECIALIST LEFT THE TOP JOB AT FIRST FLORIDA BANKS INC LATE LAST YEAR AFTER ITS SALE TO BARNETT BANKS INC HE SAYS HE IS NOW ACTIVELY RECRUITING PEOPLE WHO FIND THEMSELVES IN THE SAME FIX IN THE PAST WHEN A MERGER FORCED OUT A BANKING EXECUTIVE THAT WAS REALLY THE END OF A CAREER MR HOMAN RECALLS THERE WAS SOME TAINTED ASPECT TO IT THAT'S STILL THE CASE IF A BANK HAS FAILED HE ADDS BUT TODAY THE BANKING INDUSTRY'S WIDESPREAD CONSOLIDATION HAS DIMINISHED THE TAINT HE SAYS MR HOMAN SAYS THAT SOON AFTER HE JOINED RIGGS IN WASHINGTON HE TOLD HIS STAFF TO SEEK PEOPLE SET LOOSE BY LOCAL BANK MERGERS AND RESTRUCTURINGS WE ARE TRYING TO PICK UP THE BEST IT DOESN'T MAKE ANY DIFFERENCE TO ME IF THEY ARE UNEMPLOYED HE ADDS AS LONG AS CANDIDATES SHOW A GOOD TRACK RECORD MR HOMAN SAYS HE HAS ALREADY HIRED A NEW RETAIL BANKING CHIEF A MAN DISPLACED AFTER HIS BANK WAS TAKEN OVER THE NEWCOMER IS EXCELLENT THE RIGGS PRESIDENT SAYS HE IS ONE OF THE BEST BANK RETAILERS IN WASHINGTON AS SEEN AT TELEDYNE AND RIGGS MANY BUSINESSES STILL REFUSE TO CONSIDER UNEMPLOYED JOB CANDIDATES UNLESS THEY OFFER STERLING CREDENTIALS BUT THERE ARE FAR MORE SUCH EXECUTIVES POUNDING THE PAVEMENT THESE DAYS THAT'S WHY PEOPLE LIKE ERNEST MARIO FIND THEMSELVES HOUNDED BY HEADHUNTERS AND CORPORATIONS WHEN THEY BECOME UNEMPLOYED LAST WEEK THE 55YEAROLD MR MARIO BEGAN WORK AS CHIEF EXECUTIVE AND COCHAIRMAN OF ALZA A PHARMACEUTICAL COMPANY IN PALO ALTO CALIF HIS NEW JOB STARTED FIVE MONTHS AFTER HE RESIGNED AS CEO AND DEPUTY CHAIRMAN OF GLAXO HOLDINGS PLC EUROPE'S BIGGEST DRUG COMPANY US RECRUITERS PURSUED MR MARIO AVIDLY BEFORE HE DECIDED TO ACCEPT ALZA'S OFFER IN EARLY JULY PEOPLE TRACKED ME DOWN ALL OVER THE PLACE HE RECALLS SOME EVEN LEFT PHONE MESSAGES WITH HIS SON IN PRINCETON NJ YET HE NOTES RECRUITERS HAD RARELY CONTACTED HIM AT GLAXO WHERE HE HAD BEEN EXPECTED TO BECOME CHAIRMAN MR MARIO SAYS THE FLURRY OF INQUIRIES LED TO NUMEROUS OPPORTUNITIES INCLUDING THE TOP JOB AT COMPANIES WHOSE SIZE RANGED FROM TINY TO MULTIBILLIONDOLLAR MR MARIO IS A CLASSIC EXAMPLE OF A VERY HIGHLY SOUGHT AFTER JOBLESS INDIVIDUAL SAYS JOHN HAWKINS A MANAGING DIRECTOR AT RECRUITERS RUSSELL REYNOLDS ASSOCIATES INC WHICH HANDLED THE ALZA ASSIGNMENT ALEX ZAFFARONI ALZA'S COCHAIRMAN AND COFOUNDER SAYS THAT HE SPENT MORE THAN A YEAR AND INTERVIEWED 20 CANDIDATES BEFORE CHOOSING HIS NEW COCHAIRMAN ERNIE MARIO IS JUST THE IDEAL TYPE OF PERSON I WAS HOPING TO ATTRACT MR ZAFFARONI SAYS IT WAS ABSOLUTELY A TURN OF LUCK THAT MARIO BECAME AVAILABLE MR MARIO INSISTS THAT HIS FIRSTEVER BOUT OF JOBLESSNESS DID NOT INFLUENCE HIS DECISION TO JOIN A COMPANY WHOSE REVENUE MAKES IT 15 TO 20 TIMES SMALLER THAN THE ONE HE LEFT I COULD HAVE GONE TO A BIGGER COMPANY OUTSIDE THE PHARMACEUTICAL INDUSTRY HE EXPLAINS BUT HE CONCEDES THAT COULD HAVE BEEN RISKY YOU DON'T WANT TO DO ANYTHING TO DAMAGE YOUR REPUTATION HE SAYS AND SUCH CAUTION IS ESPECIALLY IMPORTANT ONCE YOU ARE BETWEEN JOBS SOME EXECUTIVES WHO GOT JOBS WHILE THEY WERE UNEMPLOYED 9308110044 930811 LEISURE & ARTS BOOKSHELF PUTTING THE WIFE IN THE PICTURE BY DEBORAH SOLOMON IN THE PAST DECADE AS BIOGRAPHIES OF JACKSON POLLOCK HAVE PROLIFERATED THE PRIVATE LIFE OF WILLEM DE KOONING HAS REMAINED RELATIVELY UNEXPOSED THOUGH WIDELY CONSIDERED POLLOCK'S EQUAL AS AN ABSTRACTEXPRESSIONIST PAINTER MR DE KOONING HAS COMMANDED FAR LESS FASCINATION AS AN INDIVIDUAL PERHAPS BECAUSE HIS LIFE DOESN'T CONFORM TO HOLLYWOOD CLICHES ABOUT GENIUS TRUE HE WAS EVERY INCH POLLOCK'S MATCH WHEN IT CAME TO DRINKING AND WOMANIZING YET WHEREAS POLLOCK WAS THE QUINTESSENTIAL LIVEFASTDIEYOUNG REBEL MR DE KOONING WAS THE CAREFUL DUTCHMAN HE LABORED ENDLESSLY ON HIS PAINTINGS AND WAS FAMOUS FOR HIS INABILITY TO FINISH THEM HE'S STILL ALIVE TODAY NEARING 90 AND RUDELY DEFYING THE IDEA THAT DEBAUCHERY BRINGS EARLY DEATH MR DE KOONING'S CAREER GOT OFF TO A SLOW UNSPECTACULAR START BORN IN ROTTERDAM IN 1903 HE CAME TO THIS COUNTRY IN HIS TWENTIES AS AN ENGINEROOM WIPER ABOARD A CARGO SHIP AFTER SETTLING IN HOBOKEN HE EARNED A LIVING AS A HOUSE PAINTER HE DIDN'T HAVE HIS FIRST ONEMAN SHOW UNTIL HE WAS IN HIS MIDFORTIES THOUGH BY THEN HE HAD DEVELOPED A FORMIDABLE UNDERGROUND REPUTATION YOUNGER ARTISTS WHO REVERED HIM IN THE '50S EAGERLY IMITATED HIS THRUSTING WRISTY BRUSHWORK AND EVEN HIS PERSONAL MANNERISMS IT BECAME THE VOGUE ON TENTH STREET TO WEAR A BLACK SEAMAN'S CAP LIKE MR DE KOONING'S AND TO SAY TERRIFIC WITH A DUTCH ACCENT ONE DOUBTS THAT MR DE KOONING WOULD UTTER HIS FAMOUS TERRIFIC AFTER READING ELAINE AND BILL PORTRAIT OF A MARRIAGE HARPERCOLLINS 340 PAGES 25 THIS FIRST BIOGRAPHY OF MR DE KOONING FOCUSES ON THE ARTIST'S RELATIONSHIP WITH HIS WIFE ELAINE A FELLOW ABSTRACT EXPRESSIONIST WHO DIED IN 1989 AT THE AGE OF 70 AS THE TITLE MIGHT SEEM TO INDICATE ELAINE AND BILL IS A CHATTY LOOSELYRESEARCHED ROMP SET IN THE TWO ARTISTS' STUDIOS AND THE BARS AND BEDROOMS OF GREENWICH VILLAGE LEE HALL A FORMER PRESIDENT OF THE RHODE ISLAND SCHOOL OF DESIGN SEEMS TO ADMIRE ELAINE DE KOONING MORE THAN BILL SHE CREDITS HER WITH LAUNCHING HER HUSBAND'S CAREER WE ARE TOLD AT THE OUTSET THAT ELAINE HAD LOVE AFFAIRS WITH EVERYONE OF INFLUENCE IN THE '50S ART WORLD INCLUDING THE GREAT CRITICS HAROLD ROSENBERG AND TOM HESS AND THAT THEIR LOYALTY TO MR DE KOONING WAS IN FACT AN EXPRESSION OF THEIR AFFECTION FOR ELAINE YOU'VE HEARD OF SLEEPING YOUR WAY TO THE TOP BUT THIS IS A BOOK THAT ASKS US TO ACCEPT A NEW FORM OF OPPORTUNISM SLEEPING YOUR HUSBAND'S WAY TO THE TOP IN ANY CASE MS HALL DIDN'T TURN UP ANY FIRSTHAND INFORMATION ABOUT THE LADY'S MAJOR AFFAIRS WITH HESS AND ROSENBERG WERE THEY QUICK FLINGS OR LONG COMPLICATED SUSTAINING PASSIONS MS HALL CAN ONLY BASE HER TALE ON THE WORDS OF HANGERSON WHOM SHE OFTEN QUOTES ANONYMOUSLY HER OWN WORDS ARE STILTED AND ILLKEMPT ON PAGE 50 WE'RE TOLD THAT THE DE KOONINGS WERE ATTRACTIVE LIVELY AND TALENTED LATER ON WE HEAR OF THE COMPETITION BETWEEN THESE STRONGWILLED AND TALENTED INDIVIDUALS WHILE MS HALL REPORTS ON THE QUALITIES THAT MAKE THE DE KOONINGS LIKE EVERYONE ELSE SHE DOESN'T SAY WHAT MAKES THEM SINGULAR SHE DOES HOWEVER TELL US MUCH MORE THAN ANYONE PREVIOUSLY HAS ABOUT ELAINE DE KOONING A MINOR ABSTRACT EXPRESSIONIST WHO WAS AMONG HER HUSBAND'S MANY FOLLOWERS SHE WAS NO MATCH FOR AN ARTIST SUCH AS LEE KRASNER WHO WAS MARRIED TO POLLOCK AND FOREVER UNABLE TO DECIDE WHETHER SHE WANTED TO NURTURE A GENIUS OR TO BE ONE HERSELF ELAINE DE KOONING DIDN'T HAVE THAT KIND OF MAMMOTH AMBITION WHILE HER EARLY WORK REVEALS A PRECOCIOUS GRASP OF ABSTRACT PAINTING BY THE '60S SHE HAD SWITCHED TO A MORE CONSERVATIVE AND COMMERCIAL VEIN ACCEPTING COMMISSIONS TO PAINT A SERIES OF PORTRAITS OF SPORTS STARS AS WELL AS AN OFFICIAL PORTRAIT OF PRESIDENT KENNEDY THE IRONY IS THAT MR DE KOONING TOO WAS A FIGURE PAINTER THE ONLY ABSTRACT EXPRESSIONIST TO USE PAINT AS A METAPHOR FOR FLESH IN THE '40S HE PAINTED TERSE HAUNTED PORTRAITS OF HIS FAMILY AND FRIENDS AROUND 1950 THE FIGURE WAS BRIEFLY COLLAPSED INTO THE TWISTING ABSTRACT FORMS OF EXCAVATION AND ATTIC THE GREATEST WORKS OF HIS CAREER BUT THE FIGURE SOON RESURFACED IN HIS WOMEN PICTURES OF THE EARLY '50S THOSE SPLASHY CROWDPLEASERS THAT COMBINE THE CHUBBINESS OF RUBEN'S NUDES WITH A WITCHY FEMININITY STRAIGHT FROM THE STREETS OF UNION SQUARE WHAT COMPELLED HIM TO PAINT SUCH AN UNSAVORY CARICATURE OF WOMANHOOD MS HALL MENTIONS THAT HIS MOTHER YELLED A LOT DURING HIS CHILDHOOD BUT THAT DOESN'T BEGIN TO TOUCH ON HIS OBSESSION WITH THE FEMALE FIGURE THE BODIES OF WOMEN ARE ALMOST ALWAYS PRESENT IN MR DE KOONING'S WORK WHETHER DEPICTED IN THEIR ENTIRETY OR DISTILLED INTO THE RIBBONS OF PINK THAT COIL THROUGH HIS LATER LANDSCAPES IN THE '50S MR DE KOONING'S PICTURES WERE OFTEN DESCRIBED WITH WORDS LIKE VIOLENT AND SLASHING AND THEY BECAME SYNONYMOUS WITH THE INSURGENT SPIRIT OF THE ART OF THAT ERA BUT WHO WOULD CALL HIM A REBEL TODAY OVER THE YEARS HIS ART HAS COME TO SEEM INCREASINGLY ROOTED IN THE REFINEMENT OF EUROPE HIS BESTKNOWN PICTURES ARE CLOSE IN SPIRIT TO THOSE OF THE GREAT VOLUPTUARIES MR DE KOONING MIGHT BE DESCRIBED AS AMERICA'S PREEMINENT OLD DUTCH MASTER 9308110043 930811 BUSINESS BRIEF IMCERA GROUP INC LOSS OF 203 MILLION POSTED FOR FISCAL FOURTH QUARTER IMCERA GROUP INC REPORTED A FISCAL FOURTHQUARTER LOSS OF 203 MILLION OR 263 A SHARE AFTER TAKING A CHARGE OF 242 MILLION MAINLY FOR RESTRUCTURING ACTIONS AT ITS PITMANMOORE ANIMAL HEALTH PRODUCTS UNIT THE LATEST QUARTER INCLUDES A LOSS OF 31 MILLION FROM DISCONTINUED OPERATIONS IN THE YEAREARLIER QUARTER THE NORTHBROOK ILL HEALTH PRODUCTS AND SPECIALTY CHEMICALS CONCERN EARNED 437 MILLION OR 56 CENTS A SHARE SALES ROSE 7 TO 4984 MILLION FROM 4679 MILLION FOR THE YEAR ENDED JUNE 30 THE COMPANY POSTED A LOSS OF 2004 MILLION OR 260 A SHARE INCLUDING A CHARGE OF 806 MILLION FOR AN ACCOUNTING CHANGE AND A 6 MILLION LOSS FROM DISCONTINUED OPERATIONS THIS COMPARES WITH NET INCOME OF 1275 MILLION OR 163 A SHARE INCLUDING A LOSS OF 13 MILLION FROM DISCONTINUED OPERATIONS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE IMCERA SHARES WERE QUOTED AT 29375 UP 375 CENTS 9308110042 930811 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO THIS TELECOMMUNICATIONS COMPANY NAMED RICHARD A POST 34 YEARS OLD TO THE NEW POSITION OF VICE PRESIDENT OF CAPITAL ASSETS OPERATIONS MR POST FORMERLY A VICE PRESIDENT IN THE COMPANY'S CORPORATE DEVELOPMENT DIVISION WILL MANAGE THE LEVERAGEDLEASE PORTFOLIO OF U S WEST FINANCIAL SERVICES AND DISPOSE OF U S WEST'S REMAINING REAL ESTATE ASSETS 9308110041 930811 INTERNATIONAL BRIEF VEBA AG GERMAN COMPANY'S PROFIT DROPPED 13 FOR FIRST HALF GERMAN TRADING CHEMICALS AND ENERGY COMPANY VEBA AG REPORTED A 13 SLIDE IN NET INCOME FOR THE FIRST HALF OF 1993 NET INCOME FELL TO 316 MILLION MARKS 1862 MILLION FROM 364 MILLION MARKS A YEAR EARLIER SALES GREW A SLIGHT 03 TO 3321 BILLION MARKS FROM 3312 BILLION MARKS VEBA'S FIRSTHALF RESULTS CONTINUED A TREND SET IN THE FIRST QUARTER WHEN NET INCOME FELL 13 VEBA SAID EARNINGS IN ITS ELECTRICITY DIVISION ROSE COMPARED WITH THE PREVIOUS YEAR'S STRONG RESULTS PARTLY DUE TO HIGHER VOLUMES CHEMICAL DIVISION EARNINGS ON THE OTHER HAND REMAINED TOTALLY UNSATISFACTORY VEBA SAID CITING THE DIFFICULT SITUATION IN STANDARD PLASTICS AND RUBBER STEMMING FROM WORLDWIDE OVERCAPACITY AND STRONG PRESSURE FROM LOWPRICED COMPETITORS THE COMPANY SAID IT EXPECTS NO CHANGE IN ITS ECONOMIC FORTUNES IN THE SECOND HALF 9308110040 930811 TECHNOLOGY BRIEF CRAY RESEARCH INC MAKER OF SUPERCOMPUTERS ACQUIRES TECHNOLOGY RIGHTS CRAY RESEARCH INC SAID IT ACQUIRED RIGHTS TO CERTAIN TECHNOLOGIES DEVELOPED BY SUPERCOMPUTER SYSTEMS INC WHICH CLOSED IN FEBRUARY AFTER INTERNATIONAL BUSINESS MACHINES CORP HALTED FUNDING SUPERCOMPUTER SYSTEMS WAS HEADED BY STEVE S CHEN A TOP CRAY SUPERCOMPUTER DESIGNER WHO DEPARTED IN 1987 TO BUILD HIS VISION OF THE WORLD'S FASTEST COMPUTER ANALYSTS ESTIMATE THAT IBM INVESTED MORE THAN 150 MILLION IN SUPERCOMPUTER SYSTEMS CRAY A SUPERCOMPUTER MAKER BASED IN EAGAN MINN BOUGHT THE TECHNOLOGIES FROM SUPERCOMPUTER SYSTEMS LP WHICH IS LARGELY OWNED BY AN IBM UNIT TERMS WEREN'T DISCLOSED AN IBM SPOKESMAN SAID ANY PROCEEDS LIKELY ARE TO BE APPLIED TO COSTS INCURRED IN CLOSING SUPERCOMPUTER SYSTEMS CRAY SAID IT MAY INCORPORATE SOME OF THE TECHNOLOGIES IT ACQUIRED INTO ITS PRODUCTS BUT DOESN'T PLAN TO BUILD A NEW PRODUCT LINE OR OCCUPY NEW FACILITIES CRAY ALSO SAID IT EXTENDED ITS PATENT CROSSLICENSING PACT WITH IBM THROUGH THE END OF THE DECADE 9308110039 930811 WHO'S NEWS ENRON CORP ENRON CORP HOUSTON NORMAN P BLAKE WAS NAMED TO THE BOARD OF THIS NATURAL GAS COMPANY BRINGING THE BOARD'S SIZE TO 13 MEMBERS MR BLAKE IS CURRENTLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF US FIDELITY & GUARANTEE 9308110038 930811 TECHNOLOGY & HEALTH SILICON GRAPHICS'S MIPS NAMES WHITESIDE PRESIDENT MOUNTAIN VIEW CALIF TOM WHITESIDE WHO LED THE DEVELOPMENT OF THE POWERPC MICROPROCESSOR FOR INTERNATIONAL BUSINESS MACHINES CORP HAS BEEN NAMED PRESIDENT OF MIPS TECHNOLOGIES INC A UNIT OF SILICON GRAPHICS INC AT IBM MR WHITESIDE 40 YEARS OLD SPEARHEADED A JOINT EFFORT WITH MOTOROLA INC AND APPLE COMPUTER INC TO BREAK INTEL CORP'S PRACTICAL MONOPOLY IN PERSONALCOMPUTER CHIPS WITH THE POWERPC THE CHIP IS DESIGNED TO DELIVER TWO TO THREE TIMES THE POWER OF INTEL'S CURRENT PACESETTING MICROPROCESSOR THE 486 AT THE SAME COST SUCH CHIPS GAIN SPEED BY REDUCING THE AMOUNT OF COMPLEX COMPUTING INSTRUCTIONS MIPS SAID MR WHITESIDE WILL BE RESPONSIBLE FOR RESEARCH AND DEVELOPMENT MARKETING AND ALLIANCES AT THE CHIPMAKING CONCERN HE SUCCEEDS ROBERT MILLER WHO RESIGNED IN FEBRUARY TO START NETPOWER INC A VENTURE IN SUNNYVALE CALIF 9308110037 930811 TECHNOLOGY BRIEF ENZON INC COMPANY RECEIVES PATENT FOR BLOODCELL SUBSTITUTE ENZON INC SAID IT WAS AWARDED A US PATENT FOR ITS REDBLOODCELL SUBSTITUTE PEGHEMOGLOBIN IN A NEWS RELEASE THE PISCATAWAY NJ COMPANY SAID ITS PEGHEMOGLOBIN IS BASED ON BOVINE HEMOGLOBIN WHICH MAY DECREASE THE RISK OF VIRAL TRANSMISSION DURING TRANSFUSION AND ELIMINATE THE NEED FOR BLOOD TYPING AND MATCHING ENZON SAID IT IS NOW DOING ANIMAL RESEARCH STUDIES OF PEGHEMOGLOBIN FOR THE HUMAN MARKET AND IN CONJUNCTION WITH AMERICAN VETERINARY PRODUCTS IS DOING PRECLINICAL STUDIES FOR THE VETERINARIAN MARKET ENZON HAS MORE PATENTS PENDING WORLDWIDE FOR ADDITIONAL COMPOSITIONS AND MANUFACTURING PROCESSES PATENTS FOR PEGHEMOGLOBIN IN ADDITION A PILOT PURIFICATION AND MANUFACTURING PLANT HAS BEEN COMPLETED TO SUPPLY SUFFICIENT QUANTITIES OF PEGHEMOGLOBIN FOR PHASE I AND II HUMAN CLINICAL TRIALS AS WELL AS VETERINARY STUDIES ENZON SHARES CLOSED AT 5375 UP 375 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 9308110036 930811 WHO'S NEWS BIRMINGHAM STEEL CORP BIRMINGHAM STEEL CORP BIRMINGHAM ALA WILLIAM J CABANISS JR 55 YEARS OLD AND THE PRESIDENT OF PRECISION GRINDING INC WAS NAMED A DIRECTOR OF THIS STEEL MINIMILL OPERATOR INCREASING THE SIZE OF THE BOARD TO 12 9308110035 930811 LEISURE & ARTS SIN'S HIS NAME WRITING'S HIS GAME BY G PIERRE GOAD SINGAPORE HE WANTED TO BE A POP STAR HE ENDED UP IN DRUG REHAB INSTEAD WHERE HE STARTED HIS CAREER AS A WRITER BY TRADING DIRTY STORIES FOR SMOKES DAMIEN SIN'S FELLOW INMATES WERE BIG FANS OF SIDNEY SHELDON AND HAROLD ROBBINS NOVELS MR SIN NOTICED THAT THE BOOKS' SMUTTY BITS WERE ALWAYS WELLMARKED AND WELLREAD I COULD DO BETTER THAN THIS HE TOLD HIMSELF SO HE STARTED WRITING ABOUT SEX MY PORNO STORIES WERE VERY GOOD PORNO STORIES NOT THE USUAL STUFF THEY WERE REALLY IMAGINATIVE SWEATY DIRTY MR SIN SAYS THEY WERE VERY POPULAR WITH THE INMATES AND THE WARDENS I WROTE MORE THEY GAVE ME CIGARETTES THEN HE BEGAN WRITING OTHER STORIES ALL KINDS OF STORIES BY THE TIME MR SIN CAME OUT OF THE REHABILITATION CENTER HE HAD A BIG STACK OF STORIES AND A NEW AMBITION ONE YEAR LATER THE 28YEAROLD WRITER WITH AN IMPERFECT PAST IS HELPING INVENT A NEW GENRE OF POPULAR FICTION SINGAPORE NOIR HIS STORIES FEATURE SPIRITS AND GHOSTS RATHER THAN THE USUAL COPS AND PRIVATE DETECTIVES HOWEVER MR SIN'S TALES ARE CROWDED WITH ENOUGH PIMPS PROSTITUTES AND LOSERS TO FILL A GLOOMY DIVE ON ANY DARK STREET IN OLD LOS ANGELES THERE'S ENOUGH MURDER GREED ENVY AND SWEET VENGEANCE TO SATISFY ANY PARISIAN CRITIC'S DEFINITION OF NOIR MR SIN'S CLASSIC SINGAPORE GHOST STORIES FLAME OF THE FOREST 173 PAGES 990 SINGAPORE DOLLARS 6 IS A HUGE HIT IN THIS TINY PERFECT CITYSTATE AND DEFINITELY A SURPRISE ACCORDING TO LOCAL RULES MR SIN SHOULDN'T BE A BESTSELLING AUTHOR HE DIDN'T GO TO UNIVERSITY WHICH IS A CLEAR BLACK MARK IN A DIPLOMAMAD SOCIETY MOREOVER HE WAS A DRUG USER AND A FAILURE IN A PLACE WHERE A SEAMLESS RESUME IS ESPECIALLY PRIZED NONE OF THAT WAS ENOUGH TO STOP MR SIN CONVINCED HE WAS A WRITER HE WENT HUNTING FOR A PUBLISHER AS SOON AS HE GOT OUT OF REHABILITATION I WENT TO THE BOOKSTORE AND CHECKED OUT THE LOCAL PUBLISHERS MR SIN SAYS HE WENT TO ONE OF THE BIG LOCAL HOUSES THEY ASKED HIM TO FILL OUT A MULTIPAGE RESUME THEY WANTED A LIST OF HIS UNIVERSITY DEGREES AND OTHER QUALIFICATIONS MR SIN REMEMBERS NOW WITH A GRIN IF YOU WANT TO BE A DOCTOR YOU NEED A DEGREE IF YOU WANT TO BE A WRITER ALL YOU NEED IS IMAGINATION MR SIN SAYS IT TAKES AN INTERESTING PERSON TO WRITE AN INTERESTING BOOK IF YOU'RE A BORING PERSON YOU'LL WRITE A BORING BOOK EARLY LAST YEAR MR SIN TURNED UP AT FLAME OF THE FOREST A SMALL LOCAL PUBLISHING HOUSE HE MARCHED IN HERE AND DEMANDED THAT WE READ HIS STORIES SAYS ALEX CHACKO MANAGING DIRECTOR AND COOWNER OF FLAME OF THE FOREST HE JUST WALKED IN WITHOUT AN APPOINTMENT MR CHACKO SAYS HE AND HIS PARTNER LIKED THE STORIES AND THEY LIKED MR SIN HE'S SEEN A LOT OF LIFE MR CHACKO SAYS HE ISN'T YOUR AVERAGE SINGAPOREAN THERE ARE VERY FEW PEOPLE HERE LIKE HIM BUT MR SIN'S PILE OF MANUSCRIPTS DIDN'T ADD UP TO A SINGLE COHERENT BOOK SO MR CHACKO SAYS HE AND HIS PARTNER SUGGESTED HE TRY TO PUT TOGETHER A COLLECTION OF HORROR STORIES MR SIN GOT TO WORK PUBLISHED SIX MONTHS AGO CLASSIC SINGAPORE HORROR STORIES HAS SOLD ABOUT 16000 COPIES SO FAR MR CHACKO SAYS THAT MAY NOT SOUND LIKE MUCH BUT SINGAPORE HAS A POPULATION OF JUST THREE MILLION IN A MARKET THE SIZE OF THE US THE COMPARABLE SALES FIGURE WOULD BE 14 MILLION COPIES IN OTHER WORDS THE BOOK IS A MONSTER HIT DRESSED FOR SUCCESS IN REGULATION ROCKANDROLL BLACK HIS WALKMAN HEADPHONES DRAPED AROUND HIS NECK LIKE A STRING OF PEARLS MR SIN SIPS A COFFEE IN A BOOKSTORE CAFE THIS IS BETTER THAN ALL THE JOBS I EVER HAD HE SAYS MR SIN HAS HAD LOTS OF JOBS WAITER DISK JOCKEY MUSICIAN WORKING THE LIGHTS IN A CHINESE THEATER LOUNGE SINGAPORE'S ANSWER TO A HOSTESS BAR I DID TERRIBLE IN SCHOOL MR SIN SAYS AFTER HIGH SCHOOL HE FAILED HIS PREUNIVERSITY ALEVEL EXAMS IN SINGAPORE HIS PARENTS SENT HIM TO ENGLAND TO TRY AGAIN HE FAILED HIS ALEVELS A SECOND TIME DISTRACTED BY LONDON'S MUSIC SCENE I WANTED TO BE A POP STAR HE SAYS HE RETURNED TO SINGAPORE WHERE DRUGS EVENTUALLY LANDED HIM IN THE GOVERNMENT REHABILITATION CENTER I HAD A DRUG PROBLEM BUT THAT'S OVER WITH MR SIN SAYS HE WORKED IN THE OFFICE AT THE CENTER WHERE HE WOULD BORROW A TYPEWRITER TO TAP OUT HIS STORIES MR SIN SAYS HE STILL WRITES ON A TYPEWRITER BECAUSE I LIKE THE SOUND THE SOUND OF WORDS PILING UP INTO PAGES MR SIN IS CURRENTLY WRAPPING UP A SEQUEL TO HIS FIRST BOOK WHICH WILL BE PUBLISHED LATER THIS YEAR AFTER THAT HE SAYS HE ISN'T SURE HE SAYS HE DOESN'T WANT TO CONFINE HIMSELF TO HORROR STORIES HE IS WORKING ON OTHER THINGS WHICH HE DOESN'T WANT TO TALK ABOUT YET AND WOULD LIKE TO TRY HIS HAND AT WRITING MOVIE SCRIPTS I MIGHT WRITE A BOOK IN CHINESE ONE DAY SAYS MR SIN WHO SPEAKS MANDARIN AND HOKKIEN ANOTHER CHINESE DIALECT PERHAPS SOME DAY HE WILL GET DOWN TO TELLING HIS OWN STORY WHICH IS ALMOST STRANGER THAN HIS FICTION HIS NAME IS DEFINITELY TOO GOOD TO BE TRUE HE INVENTED IT MR GOAD IS THE ASIAN WALL STREET JOURNAL'S SINGAPORE CORRESPONDENT BASED IN HONG KONG 9308110034 930811 CREDIT MARKETS TREASURY LONG YIELD FALLS AGAIN TO RECORD LOW AS MANAGERS SEE STRONG VALUE RALLY IN MUNIS BY LYNN K ADLER AND GENE COLTER SPECIAL TO THE WALL STREET JOURNAL NEW YORK AS THE MARKET FOR TREASURY BONDS CONTINUES TO RALLY IN REACTION TO THE PASSAGE OF PRESIDENT CLINTON'S BUDGET PACKAGE MONEY MANAGERS SAY THE MUNICIPAL BOND MARKET STANDS TO RALLY EVEN MORE THANKS TO HIGH LEVELS OF NEW ISSUANCE MANAGERS SAY THAT TAXEXEMPT MUNICIPAL BONDS ARE STILL A BARGAIN FOR INVESTORS LOOKING FOR WAYS TO SHIELD THEMSELVES FROM THE SUBSTANTIAL TAX HIKES IN THE NEW ECONOMIC PACKAGE YESTERDAY THE YIELD OF THE 30YEAR TREASURY BOND DROPPED TO 644 THE LOWEST IN 16 YEARS FROM 646 ON MONDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD ROSE MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE AMOUNT TO 108 29/32 MEANWHILE THE TREASURY COMPLETED THE FIRST AUCTION OF ITS MASSIVE 385 BILLION QUARTERLY REFUNDING BY SELLING A WHOPPING 1667 BILLION OF THREEYEAR NOTES THE NOTES WERE SOLD AT AN AVERAGE YIELD OF 449 IN LINE WITH EXPECTATIONS EVEN THOUGH SUBSTANTIAL TAX INCREASES HAD BEEN EXPECTED FOR MONTHS FINANCIAL ADVISERS AND MONEY MANAGERS ARE NOW MORE EAGER THAN EVER TO ADVISE INVESTORS TO LOAD UP ON TAXEXEMPT MUNICIPAL BONDS THE VALUE OF MUNICIPAL BONDS HASN'T EVAPORATED DESPITE THE UPPERINCOME TAX INCREASE BECAUSE WE'RE LOOKING AT RECORD SUPPLY IN THE TAXEXEMPT BOND MARKET SAID JEFFREY AUGUSTINE A PORTFOLIO MANAGER AT COLONIAL MUTUAL FUNDS IN BOSTON THE TIME TO BUY IS NOW BECAUSE TAX RATES HAVE ALREADY BEEN INCREASED NEW ISSUANCE IS EVENTUALLY GOING TO SUBSIDE AND EXISTING TAXEXEMPT SECURITIES ARE GOING TO GET EXPENSIVE MANY ANALYSTS SAY THIS SCENARIO MAY SOUND FAMILIAR AROUND MIDYEAR FINANCIAL ADVISERS WERE TALKING UP MUNICIPAL BONDS AS MR CLINTON'S PROMISE OF HIGHER TAX RATES WOULD MAKE EACH REMAINING TAX EXEMPTION DEAR ALSO INVESTORS FLUSH WITH CASH THANKS TO JULY 1 SEMIANNUAL COUPON PAYMENTS REDEMPTIONS AND CALLS WOULD REINVEST THE BULK INTO MUNIS MAKING THEM MORE EXPENSIVE RELATIVE TO TREASURYS ALL OF THAT WAS LEGITIMATE BUT SURPRISINGLY INTEREST RATES SLID TO NEW LOWS THAT KEPT ISSUERS BUSY SELLING NEW DEBT TO REFUND OLDER HIGHERYIELDING DEBT LIMITING ANY MUNI SCARCITY VALUE BECAUSE OF THAT HEAVY ISSUANCE TAXEXEMPT BONDS REMAIN VERY ATTRACTIVE COMPARED WITH TAXABLE DEBT ANALYSTS NOW SAY THAT UNLESS RATES PLUNGE SIGNIFICANTLY LOWER NEW ISSUANCE WON'T MAINTAIN ITS RECORD PACE MUCH LONGER CONSEQUENTLY THERE ISN'T ANY REASON TO WAIT TO BUY MUNIS SAID MR AUGUSTINE THE VALUE'S THERE INVESTORS SHOULD PUT THEIR MONEY TO WORK IN MUNIS BECAUSE THEY'RE GETTING EXCELLENT VALUE RELATIVE TO TREASURYS MUNIS YIELD AS MUCH AS 85 OF COMPARABLE TREASURYS ABOUT AS HIGH A PERCENTAGE AS ANY TIME IN THE PAST YEAR THAT'S VERY CHEAP CONSIDERING THIS WEEK THE PRESIDENT SIGNED A TAX INCREASE INTO LAW RETROACTIVE TO THE FIRST OF THE YEAR SAID MR AUGUSTINE WE BELIEVE YOU CAN'T FIND A BETTER PLACE TO INVEST THAN MUNIS JOSEPH BAXTER VICE PRESIDENT OF FIXEDINCOME SERVICES AT CORESTATES INVESTMENT ADVISERS IN PHILADELPHIA AGREES THAT INVESTORS SHOULD FOCUS ON TAXEXEMPT SECURITIES I'M STILL IN THERE SAYING DON'T WAIT' UNLESS YOU NEED TAXABLE INCOME IF YOU'RE IN THE RIGHT TAX BRACKETS I DON'T SEE ANY REASON NOT TO BUY NOW HE SAID A RISE IN SOCALLED CROSSOVER BUYERS DRIVES THAT POINT HOME ANALYSTS SAY THESE ARE INVESTORS WHO TYPICALLY BUY BOTH TAXEXEMPT AND TAXABLE SECURITIES BUT ARE AGGRESSIVELY FAVORING TAXEXEMPTS BECAUSE OF THEIR RELATIVE VALUE CURRENTLY A 30YEAR TRIPLEARATED MUNICIPAL BOND YIELDS ABOUT 550 FOR AN INVESTOR IN THE 31 TAX BRACKET IT WOULD TAKE A YIELD OF 797 ON A TAXABLE ISSUE TO BE COMPARABLE AT THE HIGHEST TAX RATE UNDER MR CLINTON'S DEFICITCUTTING PLAN 396 THAT INVESTOR WOULD NEED A 911 YIELD ON TAXABLES ROBERT DONOVAN VICE PRESIDENT AT REINOSO & CO SAID THAT ON AN AFTERTAX BASIS TREASURYS HAVE BEEN LOOKING LESS ATTRACTIVE THAN MUNIS JUST THE LOWNESS OF THE GROSS YIELDS START GIVING SOME PEOPLE A SENSE OF STICKER SHOCK SCARCITY VALUE IS ONE REASON THE 30YEAR TREASURY BOND IS BUCKING THE TREND AND IS IN STRONG DEMAND DESPITE THOSE LOW YIELDS AFTER THIS WEEK'S REFUNDING THE TREASURY WILL MOVE FROM QUARTERLY BOND SALES TO SEMIANNUAL BOND AUCTIONS IN THE MUNI MARKET MORE SUPPLY THAN ANTICIPATED IS THE ONLY THING ESSENTIALLY HOLDING UP THE VALUE OF MUNIS RELATIVE TO TREASURYS SO MY ADVICE IS GET IN THERE NOW BEFORE IT'S TOO LATE SAID MR BAXTER OF CORESTATES SOME OF THAT SUPPLY IS GOING TO GO AWAY AS ISSUERS START RUNNING OUT OF CHANCES TO REFUND OUTSTANDING DEBT HE ADDED MUNIS ARE THEN GOING TO GET MORE EXPENSIVE TWOTHIRDS OF THIS YEAR'S 176 BILLION OF LONGTERM MUNI ISSUANCE HAS BEEN USED TO REFUND OLDER HIGHERYIELDING DEBT THAT REFUNDING PACE IS GOING TO SLOW ANALYSTS AGREE BEFORE THE TAX REFORM ACT OF 1986 ISSUERS COULD REFUND DEBT AS OFTEN AS THEY WANTED BUT UNDER THAT LAW MUNIS SOLD BEFORE 1986 CAN BE REFUNDED BEFORE MATURITY ONLY TWICE WHILE ISSUES SOLD IN 1986 OR LATER CAN BE REFUNDED JUST ONCE ONE SIGN THAT VOLUME IS ALREADY EASING IS THE 30DAY VISIBLE SUPPLY CALCULATED BY THE BOND BUYER A TRADE PAPER THAT MEASURE SHOWS COMING MUNI SUPPLY FELL TO UNDER 5 BILLION FROM A RECENT PEAK OF OVER 8 BILLION ABOUT THREE WEEKS AGO ONLY THE BIGGEST PLAYERS IN THE TREASURY MARKET SEEMED TO BE TRADING YESTERDAY AND MOST OF THEM WERE ONLY INTERESTED IN THE 30YEAR BOND WHICH DROPPED TO ITS LOWEST YIELD SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 OTHER TREASURY SECURITIES ENDED NARROWLY MIXED WITH THE 10YEAR NOTE AND THE SEVENYEAR NOTE FINISHING UNCHANGED AND SHORTERTERM SECURITIES ENDING SLIGHTLY LOWER MEANWHILE THE TREASURY'S SALE OF 1667 BILLION IN NEW THREEYEAR NOTES AS PART OF ITS QUARTERLY REFUNDING PROGRAM DREW INTEREST FROM DEALERS YESTERDAY BUT DIDN'T AFFECT THE DAY'S MODERATE TRADING FLOWS DURING A REFUNDING THE TREASURY SELLS NEW DEBT IN ORDER TO RAISE FUNDS TO PAY OFF MATURING SECURITIES THE REASON THE 30YEAR BOND YIELD DROPPED HAD AS MUCH TO DO WITH SPECULATIVE ACTION AS IT DID WITH SUPPLY CONCERNS TRADERS SAID THE TREASURY WON'T SELL MORE 30YEAR BONDS UNTIL FEBRUARY AS IT CHANGES FROM QUARTERLY AUCTIONS TO SEMIANNUAL AUCTIONS TRADE IN THE 30YEAR BOND HAS BEEN 75 SPECULATIVE IN NATURE IN RECENT SESSIONS SAID ANDY O'FLAHERTY GOVERNMENT SECURITIES TRADING MANAGER AT NOMURA SECURITIES INTERNATIONAL INC OTHER CUSTOMERS SUCH AS MUTUAL OR PENSION FUNDS HAVE BEEN ABSENT MOST OF THESE SPECULATIVE PLAYERS WHO TYPICALLY INCLUDE DEALERS BANKS AND OTHER WELLCAPITALIZED ENTITIES ARE MAKING THEIR BETS BASED ON THE RELATIONSHIP OF THE 30YEAR BOND AND THE 10YEAR TREASURY NOTE WELLRESPECTED ANALYSTS AND TRADERS ON WALL STREET HAVE SAID THAT THE GAP BETWEEN THE 30YEAR BOND'S YIELD AND THAT OF THE 10YEAR WILL CONTINUE TO NARROW POSSIBLY EVEN INVERT WHERE THE 30YEAR YIELD IS LOWER THAN THE 10YEAR YIELD INDEED THAT GAP STOOD AT 064 PERCENTAGE POINT LATE YESTERDAY DOWN FROM 066 PERCENTAGE POINT ON MONDAY THERE WAS DECENT DEMAND FROM WALL STREET DEALERS FOR THE FIRST PART OF THE REFUNDING BUT SALESMEN AND TRADERS SAID THEY WEREN'T ABLE TO GET TOO MANY OF THEIR INSTITUTIONAL CLIENTS EXCITED ABOUT THE NEW NOTE THE TREASURY SOLD THE NEW NOTES AT A HIGH YIELD ALSO KNOWN AS THE STOPOUT RATE OF 449 THAT YIELD WAS WELL ABOVE THE 427 RATE SEEN AT THE LAST THREEYEAR NOTE SALE IN MAY THE RATIO OF BIDS ACCEPTED BY THE TREASURY TO THOSE OFFERED IS A GOOD GAUGE OF DEMAND AND IS COMMONLY KNOWN AS THE BIDTOCOVER RATIO IN YESTERDAY'S AUCTION THE BIDTOCOVER RATIO WAS 273TO1 BELOW THE 287TO1 RATIO IN MAY USUALLY THE 10YEAR NOTE AND 30YEAR BOND ISSUES DRAW GREATER DEMAND AT AUCTIONS THAN THE THREEYEAR NOTE LATE IN THE DAY THE WHENISSUED YIELD OF THE 10YEAR NOTE TO BE SOLD TODAY WAS 577 UP FROM 576 ON MONDAY WHILE THE 30YEAR BOND TO BE SOLD TOMORROW YIELDED 637 DOWN FROM 639 THE THREEYEAR NOTE SOLD YESTERDAY YIELDED 448 IN WHENISSUED TRADING HERE ARE THE RESULTS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE NOTES ARE DATED AUG 16 1993 AND MATURE AUG 15 1996 OVER 18 BILLION OF CORPORATE DEBT WAS PRICED YESTERDAY AS EIGHT COMPANIES TOOK ADVANTAGE OF A MARKET THAT SUSTAINED MONDAY'S GAINS AND CONTINUED TO SHOW STRENGTH THE MARKET WAS PEPPERED WITH COMPETITIVE BIDS AND BOUGHT DEALS THAT WERE AGGRESSIVELY PRICED WITH LITTLE SUPPLY IN THE INVESTMENTGRADE MARKET AND THE 30YEAR TREASURY BOND YIELD REMAINING BELOW 65 WALL STREET FIRMS WERE WILLING TO BID AGGRESSIVELY SYNDICATE OFFICIALS SAID AMONG THE ISSUERS YESTERDAY DOW CHEMICAL CO PRICED 150 MILLION OF 20YEAR DEBENTURES AFTER MERRILL LYNCH & CO BOUGHT THE DEAL DUKE POWER CO HELD A COMPETITIVE BID FOR 200 MILLION OF 30YEAR FIRST AND REFUNDING MORTGAGE BONDS AND VIRGINIA ELECTRIC & POWER CO HELD TWO COMPETITIVE BIDS EACH FOR 100 MILLION OF DEBT SECONDARY TRADING IN THE INVESTMENTGRADE MARKET WAS QUIET AS PRICES FOLLOWED A TREASURY MARKET THAT WAS NARROWLY MIXED AMR CORP'S BONDS TRADED UP AFTER A JURY RULED IN FAVOR OF AMR'S AMERICAN AIRLINES UNIT WHICH WAS BEING ACCUSED OF PREDATORY PRICING BY RIVALS CONTINENTAL AIRLINES AND NORTHWEST AIRLINES AS A RESULT THE SPREAD ON AMR'S 9 BONDS OF 2012 TIGHTENED FROM TWO PERCENTAGE POINTS OVER TREASURYS TO 190 PERCENTAGE POINTS AS THE YIELD DECREASED TO 835 ONE TRADER SAID THE HIGHYIELD MARKET WAS QUIET IN GENERAL WITH PRICES REMAINING UNCHANGED THE LARGEST SHIFT WAS IN THE BONDS OF WEIRTON STEEL CORP THE COMPANY'S BONDS THAT MATURE IN 1999 TRADED UP BY ABOUT TWO POINTS TO 1015 TO YIELD 105 A TRADER SAID PRICES OF MORTGAGE SECURITIES ENDED LITTLE CHANGED IN SECONDARY TRADING OF AUGUST DELIVERY SECURITIES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 2/32 HIGHER AT 99 26/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 1/8 HIGHER AT 99 28/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED 1/8 HIGHER AT 99 24/32 PRIMARY MARKET ACTIVITY WAS A BIT MORE HEATED THAN THE GENERALLY DIRECTIONLESS SECONDARY TRADING TWO OUTSTANDING REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WERE INCREASED AND ONE NEW ISSUE WAS ANNOUNCED FOR A TOTAL OF 17 BILLION THAT BROUGHT THE WEEK'S TOTAL ANNOUNCED AGENCY REMIC VOLUME TO AROUND 3 BILLION COLLATERAL INCLUDED GINNIE MAE 30YEAR 7 ISSUES FANNIE MAE 30YEAR 7 ISSUES AND FANNIE MAE 15YEAR 65 ISSUES BOTH 65 ISSUES AND 7 ISSUES CONTINUE TO BE SOUGHT AS COLLATERAL FOR NEW REMICS TRADERS SAID 9308110033 930811 INTERNATIONAL BRIEF ALLIED IRISH BANKS PLC COMPANY'S PRETAX PROFIT INCREASED 42 IN FIRST HALF ALLIED IRISH BANKS PLC IRELAND'S LARGEST COMMERCIAL BANK SAID PRETAX PROFIT ROSE 42 IN THE FIRST HALF PROFIT ROSE TO 1386 MILLION PUNTS 1938 MILLION FROM 974 MILLION PUNTS A YEAR EARLIER AIB SAID ITS BRITISH OPERATION SWUNG TO A PROFIT WHILE PROFITS FROM ITS US BANK AND FROM WORLDWIDE TREASURY OPERATIONS SOARED THE RESULT WAS WELL ABOVE MARKET EXPECTATIONS THAT REACHED AS HIGH AS 1285 MILLION PUNTS HOWEVER OUTSIDE ESTIMATES WERE HINDERED BY AIB'S MOVE IN 1993 TO A CALENDAR YEAR FROM A FISCAL YEAR YEAREARLIER COMPARISONS ARE WITH THE SIX MONTHS ENDED SEPT A REDUCTION IN PROVISIONS IN BRITAIN CUT AIB'S OVERALL BADDEBT CHARGE BY 14 TO 776 MILLION PUNTS PRETAX PROFIT AT AIB'S US DIVISION ROSE 17 TO 419 MILLION PUNTS FOR THE HALF THE RESULT REFLECTED THE RISE OF THE DOLLAR AGAINST THE PUNT AS WELL AS A 37 INCREASE IN PROFIT AT AIB'S RETAIL BANK FIRST MARYLAND BANCORP 9308110032 930811 WHO'S NEWS DIED AKINOBU ISHIHARA 58 PRESIDENT AND CHIEF EXECUTIVE OF AIWA AMERICA INC THE AMERICAN UNIT OF AIWA CO TOKYO SATURDAY IN A CAR ACCIDENT IN RIDGEWOOD NJ 9308110031 930811 WHAT'S NEWS WORLDWIDE BOSNIAN SERBS RETOOK POSITIONS ON TWO MOUNTAINS OVERLOOKING SARAJEVO SERB FORCES MOVED BACK INTO AREAS THEY HAD PLEDGED TO TURN OVER TO UN PEACEKEEPING TROOPS A FRENCH UN MILITARY SPOKESMAN SAID THEY TOOK BACK ALL THE POSITIONS THEY HAD GIVEN US A DAY BEFORE AND WE WERE LEFT WITH NOTHING HE SAID AN ANNOUNCED SERB PULLOUT FROM THE MOUNTAINS HAD BEEN VIEWED AS A BID TO PREEMPT THE THREAT OF NATO AIR STRIKES TO BREAK THE SIEGE OF BOSNIA'S CAPITAL MEANWHILE MEDIATORS WERE FORCED TO CANCEL PEACE TALKS IN GENEVA BECAUSE BOSNIA'S MUSLIM PRESIDENT WAS INSISTING THAT SERBS FIRST WITHDRAW FROM THE PEAKS ELSEWHERE IN THE BALKANS SERBS BOMBARDED A HIGHWAY BRIDGE ON CROATIA'S ADRIATIC COAST FOR AT LEAST THE SIXTH TIME IN A WEEK CROATIAN TV SAID RUTH BADER GINSBURG BECAME THE SECOND FEMALE SUPREME COURT JUSTICE DECLARING AT A WHITE HOUSE CEREMONY THAT THE TIMES ARE CHANGING THE 60YEAROLD WOMEN'S RIGHTS PIONEER WAS SWORN IN AS THE 107TH HIGH COURT JUSTICE BY CHIEF JUSTICE WILLIAM REHNQUIST SHE PRAISED CLINTON FOR NAMING OTHER WOMEN TO FEDERAL JUDGESHIPS UN MILITARY OFFICIALS IN SOMALIA SAID THEY WERE SHUTTING TWO AIRFIELDS ALLEGEDLY USED BY FUGITIVE CLAN LEADER AIDID TO SMUGGLE IN WEAPONS AND SHIPMENTS OF A NARCOTIC PLANT KHAT MOGADISHU WAS TENSE WITH RESIDENTS FEARING THAT UN TROOPS WOULD RETALIATE FOR SUNDAY'S KILLING OF FOUR US SOLDIERS IN THE CAPITAL PRESIDENT CLINTON SIGNED INTO LAW HIS ECONOMIC PROGRAM THAT CALLS FOR SPENDING CURBS AND HIGHER TAXES TO REDUCE PROJECTED FEDERAL BUDGET DEFICITS BY 496 BILLION OVER FIVE YEARS IN A WHITE HOUSE CEREMONY HE HAILED THE LANDMARK LEGISLATION GOVERNMENT AUTHORITIES RELEASED THE TEXT OF A TORNUP NOTE LEFT BY A SENIOR WHITE HOUSE AIDE WHO KILLED HIMSELF LAST MONTH THE NOTE BY VINCENT FOSTER JR SHOWED HE WAS TROUBLED BY SEVERAL ASPECTS OF THE WHITE HOUSE PURGE OF ITS TRAVEL STAFF AND SUBSEQUENT INVESTIGATION PEOPLE WITHOUT HEALTH INSURANCE DIED AT A RATE 25 HIGHER THAN THOSE WHO WERE INSURED ACCORDING TO THE RESULTS OF A 16YEAR STUDY OF NEARLY 5000 PEOPLE THE IMPACT OF HAVING NO INSURANCE WAS SIMILAR TO THAT FOR SUCH SOCIOECONOMIC FACTORS AS LACK OF HIGH SCHOOL EDUCATION AND LOW INCOME THE RESEARCHERS SAID MILD HIGH BLOOD PRESSURE WAS TREATED EFFECTIVELY BY TWO DIFFERENT APPROACHES SEPARATE STUDIES FOUND ONE STUDY FOUND THAT PATIENTS WHO TAKE HEART DRUGS AND MAKE LIFESTYLE CHANGES HAVE FEWER PROBLEMS THAN THOSE WHO ONLY MAKE LIFESTYLE CHANGES ANOTHER STUDY FOUND THAT LOSING WEIGHT CAN BE EFFECTIVE THE STATE DEPARTMENT IS CONSIDERING REOPENING MIDEAST PEACE TALKS IN WASHINGTON BY THE END OF THIS MONTH OR EARLY NEXT MONTH A DEPARTMENT SPOKESMAN SAID SECRETARY OF STATE CHRISTOPHER MEANWHILE DOESN'T HAVE ANY PLANS TO TRAVEL TO THE MIDDLE EAST AGAIN BEFORE THE ARABISRAELI NEGOTIATIONS RESUME THE AMERICAN BAR ASSOCIATION REFUSED TO PUT ITS ENDORSEMENT OF ABORTION RIGHTS TO A VOTE OF THE FULL MEMBERSHIP THE ABA'S POLICYMAKING BODY THE HOUSE OF DELEGATES VOTED 313128 AGAINST THE TEXAS STATE BAR'S PROPOSAL TO HOLD A MAIL BALLOT OF THE ABA'S 360000 MEMBERS ON WHETHER TO RETURN TO THE ORGANIZATION'S PREVIOUS NEUTRAL STANCE CIA DIRECTOR JAMES WOOLSEY FLEW TO TBILISI THE CAPITAL OF GEORGIA TO BRING HOME THE BODY OF AN AMERICAN KILLED IN MYSTERIOUS CIRCUMSTANCES WHILE REPORTEDLY WORKING FOR THE AGENCY GEORGIAN OFFICIALS PROMISED AN INVESTIGATION BUT PROVIDED FEW DETAILS ABOUT THE DEATH OF FRED WOODRUFF WHO WAS SHOT IN THE HEAD BY AN UNKNOWN ASSAILANT SUNDAY CLINTON IS SCHEDULED TO OUTLINE HIS VIEWS ON CRIME LEGISLATION TODAY AND HE PLANS TO URGE CONGRESS TO PASS THE BRADY BILL WHICH WOULD SET A NATIONAL WAITING PERIOD FOR THE PURCHASE OF HANDGUNS THE PRESIDENT HAS VOWED THAT HE WILL SIGN THE BILL INTO LAW HAITI'S SENATE SELECTED FIRMIN JEANLOUIS A SUPPORTER OF OUSTED PRESIDENT ARISTIDE AS ITS NEW SPEAKER SETTLING AN INTERNAL LEADERSHIP DISPUTE THAT HAD HELD UP A UNBROKERED PLAN TO RESTORE DEMOCRACY THE END TO THE THREEWEEK STALEMATE PAVED THE WAY FOR THE LEGISLATURE TO RATIFY ARISTIDE'S CHOICE FOR PRIME MINISTER ROBERT MALVAL 9308110030 930811 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN SELFEMPLOYED WORKERS GET A BREAK ON HEALTHINSURANCE PREMIUMS THE NEW LAW RESTORES A DEDUCTION FOR 25 OF HEALTHINSURANCE PREMIUMS PAID BY SELFEMPLOYED WORKERS SUCH AS MANY ARTISTS FREELANCE WRITERS PROFESSIONAL GOLFERS AND PARTNERS IN LAW AND ACCOUNTING FIRMS THE MEASURE IS RETROACTIVE TO JULY 1 1992 THUS ANYONE AFFECTED SHOULD CONSIDER FILING AN AMENDED 1992 RETURN THE LAW ALLOWS SELFEMPLOYED WORKERS TO DEDUCT PREMIUMS PAID FOR THEMSELVES SPOUSES AND DEPENDENTS BUT THIS DEDUCTION GENERALLY ISN'T ALLOWED IF TAXPAYERS OR THEIR SPOUSES ARE ELIGIBLE FOR EMPLOYERPAID HEALTH BENEFITS THE TEST FOR 1993 IS MADE ON A MONTHLY BASIS SO A SELFEMPLOYED LAWYER WHOSE SPOUSE JOINED A COMPANY WITH EMPLOYERPAID HEALTH BENEFITS ON AUG 1 COULD STILL DEDUCT 25 OF INSURANCE PREMIUMS PAID FOR THE FIRST SEVEN MONTHS OF 1993 SAYS PETER ELINSKY A PARTNER AT KPMG PEAT MARWICK THIS PROVISION WILL COST THE TREASURY 566 MILLION THE JOINT COMMITTEE ON TAXATION ESTIMATES LENGTHY DELAYS IN FILLING CRUCIAL WASHINGTON POSTS DRAW FIRE NEARLY SEVEN MONTHS AFTER INAUGURATION DAY PRESIDENT CLINTON STILL HASN'T NOMINATED ANYONE FOR SEVERAL OF THE NATION'S MOST IMPORTANT TAX JOBS LAWYERS ARE ESPECIALLY CHAGRINED IT HAS TAKEN SO LONG TO NAME A NEW IRS CHIEF COUNSEL DAVID JORDAN IS ACTING CHIEF COUNSEL AMONG THE OTHER MAJOR SLOTS VACANT OR FILLED BY ACTING OFFICIALS TREASURY INTERNATIONAL TAX COUNSEL AND ASSISTANT ATTORNEY GENERAL TAX DIVISION IF YOU ARE MISSING SEVERAL COGS THE WHEELS TURN MORE SLOWLY SAYS ALAN GRANWELL A LAWYER AT KAYE SCHOLER DONALD SCHAPIRO OF CHADBOURNE & PARKE AGREES YOU'RE NOT RUNNING EFFICIENTLY WHEN THIS MANY SIGNIFICANT VACANCIES REMAIN SEVERAL NOMINATIONS ARE EXPECTED SOON WE'VE BEEN WORKING FLAT OUT ON THE TAX BILL SAYS LESLIE SAMUELS TREASURY ASSISTANT SECRETARY FOR TAX POLICY ONE CONSEQUENCE IS WE HAVEN'T BEEN ABLE TO SPEND AS MUCH TIME ON STAFFING AS WE'D LIKE BUT NOW WE'RE MAKING THAT A PRIORITY PROCRASTINATORS WAKE UP AN IMPORTANT DEADLINE ARRIVES MONDAY WHILE MOST PEOPLE FILE THEIR RETURNS IN APRIL THE IRS GRANTED FOURMONTH EXTENSIONS EARLIER THIS YEAR ON 55 MILLION RETURNS THAT WAS UP FROM 51 MILLION LAST YEAR THOSE FOUR MONTHS ARE UP ON MONDAY FILE BY THEN TO AVOID PENALTIES BUT THE IRS OFFERS MORE TIME TO PEOPLE WITH SPECIAL CIRCUMSTANCES SUCH AS ILLNESS OR MISSING RECORDS THEY MAY REQUEST AN ADDITIONAL TWOMONTH EXTENSION TO OCT 15 THEY WILL GET THE EXTENSION EVEN IF THEY CAN'T PAY THEIR 1992 TAXES WITH THEIR EXTENSION REQUEST THE IRS SAYS AND THERE WON'T BE A LATEPAYMENT PENALTY IF THEY PAY THE REST OF THEIR 1992 TAX WHEN THEY FILE BY OCT 15 AND IF 90 OF THEIR TOTAL 1992 TAX BILL WAS PAID BY APRIL 15 TO ASK FOR EXTRA TIME SEND FORM 2688 TO THE IRS BY MONDAY ANYONE WHO IS DENIED ANOTHER EXTENSION MUST FILE WITHIN 10 DAYS OF THE DENIAL LETTER MIDWEST FLOOD VICTIMS DON'T NEED TO SEEK MORE TIME THEY HAVE UNTIL OCT 15 TO FILE AND PAY WITHOUT PENALTY A HELPING HAND IS EXTENDED BY THE IRS TO INDIVIDUALS WHO FILE BY AUG 16 BUT CAN'T PAY THEIR TAXES THE IRS OFFERS A MONTHLY PAYMENT PLAN FILE FORM 9465 WITH YOUR RETURN BUT THE TAX OWED REMAINS SUBJECT TO INTEREST CHARGES NOW 7 A YEAR AND A LATEPAYMENT PENALTY OF 05 A MONTH A RECORD VOLUME OF NEW TAXFREE BONDS HITS THE CREDIT MARKETS AS STATE AND LOCAL GOVERNMENTS RUSH TO TAKE ADVANTAGE OF LOW INTEREST RATES THROUGH JULY 31 MUNICIPALITIES ISSUED 1661 BILLION OF TAXFREE BONDS SECURITIES DATA CO SAYS THAT WAS UP 31 FROM A YEAR AGO CRUNCH TIME DRAWS NEAR IN CALIFORNIA A STATE SENATE COMMITTEE WILL HOLD A HEARING AUG 18 ON A BILL TO CHANGE THE STATE'S AGGRESSIVE METHOD OF TAXING MULTINATIONALS BRITAIN THREATENS TO RETALIATE AGAINST US MULTINATIONALS UNLESS CALIFORNIA CHANGES ITS WAYS SUPPORT MOUNTS FOR OVERHAULING THE UNPOPULAR NANNYTAX LAW TREASURY OFFICIALS AND LAWMAKERS ARE EAGER TO REWRITE THE LAW REQUIRING EMPLOYERS TO PAY SOCIAL SECURITY TAXES ON HOUSEHOLD WORKERS SUCH AS NANNIES AND HOUSEKEEPERS THE CURRENT LAW REQUIRES EMPLOYERS WHO PAY MORE THAN 50 A QUARTER TO PAY SOCIAL SECURITY TAXES AND FILE RETURNS QUARTERLY THE TREASURY JOINS SENATE FINANCE CHAIRMAN MOYNIHAN AND OTHERS IN CALLING FOR A HIGHER THRESHOLD AND SIMPLIFIED FILING RULES SOME SUGGEST RAISING THE THRESHOLD TO 1000 OR SO ANNUALLY AND REQUIRING EMPLOYERS TO FILE ONLY ONCE A YEAR OTHERS FAVOR A HIGHER THRESHOLD BECAUSE EVEN 1000 WOULDN'T EXEMPT MANY WORKERS IN MAJOR CITIES A HOUSE BILL APPROVED EARLIER THIS YEAR WOULD HAVE RAISED IT TO 1800 A YEAR AND MADE IT RETROACTIVE ADJUSTED FOR INFLATION THAT WOULD HAVE FREED MANY EMPLOYERS FROM PAST NONCOMPLIANCE THE HOUSE MOVE DIED BECAUSE OF A PARLIAMENTARY ROADBLOCK IN THE SENATE BRIEFS WELCOME TO NEW YORK THE COST OF A TICKET TO THE AMERICAN BAR ASSOCIATION TAX SECTION'S COCKTAIL PARTY AT TAVERN ON THE GREEN WAS 80 SEN DOLE R KAN WILL VISIT NEW HAMPSHIRE NEXT WEEK TO CAMPAIGN FOR PRESIDENT NOT REALLY HE QUIPS ON NBCTV'S MEET THE PRESS UNDER THIS TAX BILL A LOT OF PEOPLE ARE GOING TO BE MOVING TO LOWERTAX STATES AND NEW HAMPSHIRE'S A LOWTAX STATE AND JUST YOU KNOW MAY BE A PLACE TO LIVE IF CLINTON KEEPS ON IMPOSING HIGHER TAXES 9308110029 930811 MEDIA AND MARKETING NBC NEWSMAGAZINE IN GM CONTROVERSY IS UNDER FIRE AGAIN NEW YORK NBC'S PRIMETIME NEWSMAGAZINE DATELINE NBC IS UNDER FIRE AGAIN MONTHS AFTER BOUNCING BACK FROM CONTROVERSY OVER ITS RIGGING AN EXPLOSION OF A GENERAL MOTORS CORP PICKUP TRUCK THIS TIME AN EYECARE CENTER DEMANDS AN APOLOGY FOR BEING INCLUDED IN A MAY 4 PIECE ON UNNECESSARY CATARACT SURGERY PERFORMED ON THE ELDERLY TO GET MEDICARE FUNDS IN THE REPORT AN UNDERCOVER NBC VOLUNTEER IS CLEARLY TOLD TWICE BY A DOCTOR THAT SHE DOESN'T NEED SURGERY BUT WHEN A TECHNICIAN GIVES HER CONFLICTING ADVICE SHE SCHEDULES SURGERY ANYWAY CORRESPONDENT BRIAN ROSS DESCRIBED HER AS ONLY A FEW TESTS AND A HALF HOUR AWAY FROM THE OPERATING ROOM BEFORE NBC STEPS IN IT'S GENERAL MOTORS JR CHARGED MARK MCDANIEL EXECUTIVE DIRECTOR OF THE SOUTHEASTERN EYE CENTER IN GREENSBORO NC WHICH SAW BUSINESS DROP 30 AFTER THE REPORT MR MCDANIEL SAID THE CENTER'S FINAL SAFETY NET WOULD HAVE PREVENTED SURGERY A FACT WHICH NBC A UNIT OF GENERAL ELECTRIC CO ALSO REPORTED IN THE GM INCIDENT IN NOVEMBER DATELINE CONCEALED ITS USE OF TOY ROCKETS TO GET FOOTAGE OF A TRUCK IGNITING IN A CRASH IN FEBRUARY THE SHOW MADE AN EXTRAORDINARY ONAIR APOLOGY AS PART OF A SETTLEMENT WITH GM LATER FIRING THE SHOW'S EXECUTIVE PRODUCER AND TWO OTHERS PEOPLE AT NBC NEWS SAID THERE WAS DISSENT OVER INCLUDING THE SOUTHEASTERN INCIDENT IN THE CATARACTS PIECE BUT DATELINE EXECUTIVE PRODUCER NEAL SHAPIRO SAID THE STORY IS FAIR WITH ALL THE FACTS LAID OUT FOR VIEWERS TO MAKE UP THEIR OWN MINDS 9308110028 930811 INTERNATIONAL BRIEF DRESDNER BANK AG NO 2 GERMAN BANK POSTS FIRSTHALF PROFIT GAIN DRESDNER BANK AG GERMANY'S SECONDLARGEST BANK REPORTED FIRSTHALF OPERATING PROFIT ROSE 14 TO 9361 MILLION MARKS 5515 MILLION BECAUSE OF A CHANGE IN REPORTING PRACTICES DESIGNED TO BRING GERMAN BANKING RESULTS MORE IN LINE WITH EUROPEAN NORMS GROUP RESULTS COULDN'T BE DIRECTLY COMPARED WITH YEAREARLIER RESULTS DRESDNER PROVIDED ADJUSTED FULLYEAR 1992 DATA AND USED HALF TO MAKE THE COMPARISON THE CHAIRMAN OF THE LEIPZIGBASED BANK JUERGEN SARRAZIN TOLD REPORTERS HE EXPECTS FULLYEAR GROWTH TO BE IN DOUBLE DIGITS AND NO WORSE THAN LAST YEAR WHEN THE BANK'S FULL OPERATING PROFIT ROSE 13 TO 281 BILLION MARKS THE SIXMONTH INCREASE PUT DRESDNER BANK IN THE LOWER HALF OF OTHER GERMAN BANKS AT THE HALFYEAR MARK AND MOST ANALYSTS DECLARED THE NEWS NEUTRAL DRESDNER'S EARNINGS GAIN WAS FUELED BY SURGE IN PROFIT FROM OWNACCOUNT TRADING TO 3819 MILLION MARKS MORE THAN 2 1/2 TIMES THE COMPARABLE FIGURE OUTSTRIPPING ALMOST ALL COMPETITORS NET COMMISSION INCOME ROSE 135 TO 139 BILLION MARKS AMONG THE WEAKEST OF THE MAJOR BANKS WHILE INTEREST INCOME EDGED UP 46 TO 3 BILLION MARKS 9308110027 930811 INTERNATIONAL BRIEF VOLKSWAGEN AG LOPEZ'S COSTCUTTING EFFORTS SAVE 4169 MILLION IN 1993 THIS WINDFALL WAS ACHIEVED MOSTLY THROUGH SAVINGS ON PARTS PRICES REDUCED STOCKS AND THE REDUCTION OF UNNECESSARY INVESTMENTS AT THE GERMAN AUTO MAKER SAID MR PIECH AT A PRESENTATION OF NEW GOLF MODELS IN HANOVER GERMANY EMPHASIZING THE POSITIVE CONTRIBUTIONS OF MR LOPEZ WHO IS THE CENTER OF INDUSTRIAL ESPIONAGE CHARGES LEVELED BY HIS FORMER EMPLOYER GENERAL MOTORS CORP MR PIECH CONTINUED HIS EFFORTS TO SHIFT PUBLIC ATTENTION TO VW'S RESTRUCTURING AND AWAY FROM THE BATTLE WITH GM INTERNAL COSTCUTTING MEASURES HAVE ALREADY LED TO 44 BILLION MARKS OF SAVINGS IN THE FIRST SIX MONTHS OF THE YEAR AND ANOTHER 43 BILLION MARKS WILL BE SAVED IN THE SECOND HALF MR PIECH SAID THE VW CHAIRMAN REITERATED THAT HE AND THE SUPERVISORY BOARD STAND 100 BEHIND MR LOPEZ 9308110026 930811 INTERNATIONAL BULLETPROOF JACKETS OFFER COLOMBIANS SECURITY WITH STYLE POLITICIANS SHOPKEEPERS DON DESIGNER DUDS THAT SPORT DISCREET ARMORED LININGS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BOGOTA COLOMBIA AS HE GOES THROUGH THE RACKS OF JACKETS IN MIGUEL ANGEL CABALLERO'S STORE NORBERTO MORA GRAPPLES WITH THE USUAL SHOPPER'S DILEMMA LEATHER OR SUEDE BROWN OR BLACK HAVING CHOSEN BROWN LEATHER HE FACES A TOUGHER QUESTION LEVEL 1 PROTECTION WHICH WILL SHIELD HIM FROM 22 25 32 AND 38CALIBER BULLETS OR WOULD HE PREFER LEVEL 2 WHICH WILL REPEL EVEN MINIUZI BULLETS FIRED AT POINTBLANK RANGE MR MORA ISN'T A SWAT TEAM MEMBER HE'S A SHOPKEEPER IN A POOR BOGOTA NEIGHBORHOOD LOOKING FOR SOME ORDINARY WORK CLOTHES HE RECENTLY WAS SHOT IN THE ARM DURING A HOLDUP AND WANTS PROTECTION AND PROTECTION IS WHAT MR CABALLERO AND HIS HALFAMERICAN PARTNER JOHN MURPHY OFFER THE TWO 25YEAROLDS RECENTLY INTRODUCED WHAT THEY CLAIM ARE THE WORLD'S FIRST DESIGNER BULLETPROOF LEATHER JACKETS AND THEY ARE LOOKING INTO ARMORED BLAZERS RAINCOATS PANTS HELMETS AND BOOTS IT'S A MARKET NICHE THAT NO ONE EXPLOITED SAYS MR CABALLERO PEOPLE MADE BULLETPROOF VESTS FOR COPS OR SOLDIERS AND BODYGUARDS AND MILLIONAIRES BUT NO ONE THOUGHT ABOUT CLOTHES FOR POLITICIANS WHO HAVE TO GO OUT AND MAKE SPEECHES OR ORDINARY PEOPLE MY CONCEPT IS THAT PROTECTION AND ELEGANCE CAN GO TOGETHER WHAT'S FASHIONABLE TODAY IS TO BE BULLETPROOFED WELL MAYBE NOT EVERYWHERE BUT THIS IS COLOMBIA A COUNTRY WHERE GUNS ARE SO COMMON THAT COUNTRY CLUBS POST SIGNS ASKING MEMBERS NOT TO DISPLAY WEAPONS IN THE PRESENCE OF CHILDREN COLOMBIA'S BLEND OF GUERRILLAS NARCOTERRORISM PARAMILITARY SQUADS EXTERMINATION GROUPS KIDNAPPERS AND ORDINARY DELINQUENTS PRODUCES STAGGERING RESULTS COLOMBIA POPULATION 32 MILLION REGISTERED 28179 HOMICIDES LAST YEAR AN AVERAGE OF 772 A DAY THERE WERE ALSO 1320 KIDNAPPINGS AND THAT'S JUST THE REPORTED CASES THESE WARLIKE NUMBERS HAVE GENERATED A VAST SECURITY INDUSTRY THE AVERAGE APARTMENT BUILDING IN BOGOTA HAS AN ARMED GUARD WINDOWS OFTEN ARE LINED WITH PROTECTIVE FILM TO SUPPRESS FLYING SHARDS OF GLASS WHEN A BOMB GOES OFF COLOMBIA IS THE COUNTRY WITH THE MOST ARMORED CARS IN THE WORLD SAYS FELIPE ARBELAEZ SALES DIRECTOR OF VEIMAS THE BIGGEST OF SEVEN AUTOMOBILE BULLETPROOFING COMPANIES VEIMAS WHICH ALSO BULLETPROOFS BUILDINGS AND OFFICES IS DEVELOPING LIGHT SHIELDING FOR CARS TO PROTECT DRIVERS FROM A WAVE OF AUTO ROBBERIES COMMITTED AT GUNPOINT AT RED LIGHTS THERE'S A MARKET FOR THIS SAYS MR ARBELAEZ AND THEN THERE ARE MESSRS CABALLERO AND MURPHY AND THEIR BULLETPROOF CLOTHES COLOMBIA IS THE IDEAL PLACE FOR THIS SAYS MR MURPHY THERE'S GREAT VIOLENCE THAT SHOWS NO SIGNS OF STOPPING AND WE MAKE VERY FINE LEATHER GOODS THE TWO MEN GOT THE IDEA WHILE STUDYING BUSINESS IN BOGOTA MR CABALLERO'S FAMILY IS IN THE CLOTHES BUSINESS MR MURPHY'S IS IN THE ARMOREDCAR BUSINESS IT TOOK TIME TO COMBINE STYLE AND ANTIBALLISTIC RESULTS BUT NOW THE TWO MEN ARE HAPPY WITH THEIR PRODUCT THEIR LEATHER JACKETS ARE SOFT ON THE OUTSIDE AND HARD AS STEEL INSIDE BECAUSE THEY'RE LINED WITH SEVERAL LAYERS OF KEVLAR MADE OF THIN ARAMID FIBERS AND SPECTRA AN ULTRADENSE POLYETHYLENE FIBER TO TOP IT ALL OFF THERE'S SPONGE TO SOFTEN THE BULLET'S IMPACT BUT EVEN CLOSE UP IT'S HARD TO SPOT THE ARMOR AND THAT'S THE POINT TRADITIONAL BULLETPROOF VESTS HAVE A ZIPPER AND CAN BE USED WITH DIFFERENT JACKETS SAYS MR MURPHY THAT'S BETTER FOR THE BUYER BUT YOU CAN SEE THE VEST UNDER THE JACKET AND THAT'S FATAL BECAUSE IF THE HIT MEN SEE YOU'RE WEARING A VEST THEY'LL SHOOT YOU IN THE HEAD TO PROVE THE JACKET'S EFFECTIVENESS MR MURPHY USUALLY GIVES A LIVE DEMONSTRATION IN WHICH HE'S SHOT AT CLOSE RANGE WE PREFER THAT OUR CUSTOMERS BRING THEIR OWN GUNS AND BULLETS SO THEY CAN'T ACCUSE US OF FAKING IT SAYS MR CABALLERO MR MURPHY CONCEDES THAT YOU WON'T WEAR THIS EVERY DAY BUT IT'S GOOD TO HAVE IT HANGING IN THE CLOSET THE NIGHT SOMEONE CALLS TO THREATEN YOU COLOMBIA ALONE PROVIDES A BIG MARKET POLITICIANS BUSINESSMEN RANCHERS GEM TRADERS SHOPKEEPERS EVEN JUDGES AND JOURNALISTS AND THEN THERE'S EXPORTS GUATEMALA'S PRESIDENT IS SAID TO HAVE ORDERED ONE AND OTHER COUNTRIES LIKE PERU LOOK PROMISING BOSNIA IS OUT BECAUSE MR MURPHY NOTES THEY USE BIG GUNS THERE THESE ARE FOR ANY PLACE WHERE THERE'S VIOLENCE WITH SMALL ARMS MR MURPHY SAYS PROSPECTS FOR THE US ARE GOOD BUT THERE'S A HITCH WHEN THEY SEE IT COMES FROM COLOMBIA THEY'LL WANT TO TAKE IT APART TO SEE IF THERE'S COCAINE IN IT HE SAYS THE JACKETS SELL FOR BETWEEN 800 AND 1000 DEPENDING ON THE LEVEL OF PROTECTION SALES HAVE REACHED 60 JACKETS AND COULD HAVE BEEN HIGHER IF ETHICS DIDN'T INTERFERE BUYERS ARE REQUIRED TO PRESENT IDENTIFICATION AND BACKGROUND CHECKS ON CUSTOMERS ARE CARRIED OUT TO MAKE SURE THE JACKETS DON'T END UP IN THE WRONG HANDS I'M NOT LIKE AN ARMS MERCHANT WHO SELLS TO GOOD GUYS AND TO BAD GUYS TO MAKE MONEY SAYS MR CABALLERO I WANT TO SELL TO GOOD GUYS TO THE UPPER CLASSES WHO NEED IT 9308110025 930811 INTERNATIONAL PIONEER MAY BASE FORECAST OF SALES ON STRONGER YEN SPECIAL TO THE WALL STREET JOURNAL TOKYO AMID WIDESPREAD EXPECTATION THAT THE JAPANESE CURRENCY WILL CONTINUE TO APPRECIATE PIONEER ELECTRONIC CORP SAID IT MAY BASE ITS SALES FORECASTS THIS YEAR ON AN AVERAGE EXCHANGE RATE OF 100 YEN TO THE DOLLAR PIONEER HAS BEEN USING 110 YEN TO THE DOLLAR AS ITS AVERAGE SUCH A CHANGE WOULD SEND A FOREBODING MESSAGE TO JAPANESE EXPORTERS FOR WHOM THE STRONGER YEN CUTS INTO PROFITS EARNED OVERSEAS WHEN CONVERTED INTO THE JAPANESE CURRENCY TO DEAL WITH THE YEN'S APPRECIATION EXPORTERS ARE RAISING PRICES OF EXPORTS SHIFTING PRODUCTION OVERSEAS REDUCING INVESTMENT AT HOME AND BUYING MORE PARTS ABROAD TO BALANCE THE FOREIGNEXCHANGE RISK PIONEER'S OVERSEAS SALES REPRESENT SOME 62 OF TOTAL REVENUE THE CONSUMERELECTRONICS COMPANY ANNOUNCED IN MAY THAT IT WILL RAISE PRICES ON ITS EXPORTS BY 2 TO 3 IN OCTOBER TO COUNTER THE IMPACT OF THE STRONGER YEN PIONEER PREDICTED THAT IN THE FISCAL YEAR ENDING NEXT MARCH PRETAX PROFIT WILL SKID 59 TO 630 BILLION YEN 60 MILLION SALES WERE SEEN SLIPPING 39 TO 368 BILLION YEN IF THE YEN HOVERS AROUND 100 YEN TO THE DOLLAR THEN PARENT SALES COULD SLIP AS MUCH AS NINE BILLION YEN BELOW THAT FIGURE THE DOLLAR ENDED TOKYO TRADING AT 10447 YEN TUESDAY 9308110024 930811 YOUR MONEY MATTERS UNCLE SAM HAS OFFER TAXPAYERS SHOULDN'T REFUSE BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL WHEN WASHINGTON OFFERS A HELPING HAND MANY TAXPAYERS' FIRST INSTINCT MAY BE TO RUN FOR COVER BUT THE NEW TAX LAW CONTAINS AN OFFER THAT REALLY IS MUCH TOO GOOD TO IGNORE THANKS TO A SPECIAL STRETCHOUT PROVISION MANY PEOPLE WHO GET HIT WITH A BIGGER TAX BILL FOR 1993 BECAUSE OF THE LAW'S HIGHER INCOMETAX RATES WON'T HAVE TO COME UP WITH THE MONEY ALL AT ONCE INSTEAD THEY CAN PAY THE EXTRA TAB IN ANNUAL INSTALLMENTS STRETCHING INTO 1996 AND THEY WON'T EVEN HAVE TO PAY A CENT IN INTEREST I DON'T THINK THERE ARE ANY CATCHES TO THIS PLAN SAYS WILLIAM J GOLDBERG PARTNER IN THE PERSONAL FINANCIAL PLANNING PRACTICE AT KPMG PEAT MARWICK IN HOUSTON ADDS STEVEN B WEINSTEIN PARTNER AND NATIONAL DIRECTOR OF PERSONAL FINANCIAL PLANNING AT ARTHUR ANDERSEN IN CHICAGO IF YOU DON'T TAKE ADVANTAGE OF IT YOU ARE MISSING OUT ON A GOLDEN OPPORTUNITY HERE'S HOW THE STRETCHOUT PROVISION WORKS SUPPOSE AN UPPERINCOME TAXPAYER DISCOVERS NEXT APRIL THAT BECAUSE OF THE NEW LAW'S HIGHER INCOMETAX RATES HE OWES 1200 MORE IN TAXES FOR 1993 THAN HE WOULD HAVE OWED UNDER THE OLD LAW THE TOP TWO OFFICIAL TAX RATES RETROACTIVE TO JAN 1 ARE NOW 36 AND 396 UP FROM 31 PREVIOUSLY INSTEAD OF WRITING OUT A CHECK FOR THE ENTIRE AMOUNT THE TAXPAYER CAN PAY THE ADDITIONAL 1200 IN THREE EQUAL INSTALLMENTS HE COULD PAY THE FIRST 400 BY NEXT APRIL 15 THE NEXT 400 IN APRIL 1995 AND THE FINAL 400 IN APRIL 1996 BUT DON'T MAKE THE MISTAKE OF ASSUMING THE GOVERNMENT IS ALLOWING TAXPAYERS THREE YEARS TO PAY ALL THEIR 1993 TAXES THAT'S WRONG THE OFFER APPLIES ONLY TO THE INCREASE IN TAXES OWED FOR 1993 AS A RESULT OF THE HIGHER INCOMETAX RATES CONTAINED IN THE NEW LAW TAKING ADVANTAGE OF THIS PROVISION PROBABLY WILL REQUIRE SOME HEAVYDUTY MATHEMATICS ACCOUNTANTS PREDICT THE INTERNAL REVENUE SERVICE WILL DEVELOP A NEW FORM TO HELP TAXPAYERS FIGURE OUT HOW MUCH THEY WOULD HAVE OWED IF THE NEW LAW HADN'T BEEN ENACTED SO FAR THOUGH THE IRS SAYS IT DOESN'T KNOW PRECISELY HOW IT WILL HANDLE IT BECAUSE ALL OF THIS IS SO NEW WE ARE PRESENTLY WORKING ON THE MECHANISM FOR DOING THIS SAYS AN IRS SPOKESMAN ACCOUNTANTS SAY THE STRETCHOUT OFFER SHOULD REMIND MANY UPPERINCOME TAXPAYERS TO REVIEW THEIR WITHHOLDING CALCULATIONS AND MAKE SURE THEY AREN'T PAYING TOO MUCH TO THE IRS TOO SOON ALTHOUGH IT MAY BE NICE TO GET A BIG REFUND CHECK UNNECESSARY WITHHOLDING IS LIKE GIVING THE GOVERNMENT AN INTERESTFREE LOAN AT THE SAME TIME THOUGH DON'T THINK YOU CAN SIMPLY DROP YOUR WITHHOLDING TO NEXT TO NOTHING THEN PAY OFF YOUR WHOLE TAX BILL IN INSTALLMENTS REMEMBER ONCE AGAIN THAT THIS SPECIAL OFFER APPLIES ONLY TO ADDITIONAL TAX YOU OWE BECAUSE OF THE HIGHER RATES NOT TO THE TOTAL TAB WHAT ABOUT SHIFTING AS MUCH INCOME AS POSSIBLE INTO 1993 FROM 1994 TO TAKE ADVANTAGE OF THE STRETCHOUT OFFER AFTER CRUNCHING THE NUMBERS FOR THE PAST FEW DAYS ACCOUNTANTS AT SEVERAL MAJOR FIRMS AGREE THE STRETCHOUT PROVISION IN AND OF ITSELF DOESN'T MAKE THIS STRATEGY WORTHWHILE FOR MANY PEOPLE BUT ACCELERATING BONUSES CONSULTING FEES AND OTHER EARNED INCOME CAN BE BENEFICIAL FOR SOME TAXPAYERS ESPECIALLY SELFEMPLOYED WORKERS ACCORDING TO RICK J TAYLOR OF PEAT MARWICK AND NORMAN A BARKER OF ERNST & YOUNG THAT'S MAINLY BECAUSE OF ANOTHER FACTOR THE NEW LAW ELIMINATES THE CAP ON WAGES SUBJECT TO THE HOSPITALINSURANCE PORTION OF SOCIAL SECURITY OVERALL AVOIDING THE HOSPITALINSURANCE TAX IS SOMETHING THAT MAKES IT WORTHWHILE FOR TAXPAYERS TO CONSIDER ACCELERATING LARGE AMOUNTS OF INCOME IF POSSIBLE FROM JANUARY OF NEXT YEAR INTO DECEMBER OF THIS YEAR SAYS RANDALL WEISS OF DELOITTE & TOUCHE FOR EXAMPLE A FREELANCE WRITER MIGHT CONSIDER TAKING A LARGE BOOK ADVANCE THIS DECEMBER RATHER THAN NEXT JANUARY AS ATTRACTIVE AS THE NEW PROVISION MAY BE LAWYERS AND ACCOUNTANTS WHO HAVE PORED OVER THE FINE PRINT ARE DISCOVERING THAT IT ISN'T QUITE AS GENEROUS AS IT MIGHT APPEAR AT FIRST GLANCE FOR EXAMPLE THE PROVISION DOESN'T APPLY TO MANY UPPERINCOME TAXPAYERS AFFECTED BY A COMPLEX MEASURE KNOWN AS THE ALTERNATIVE MINIMUM TAX SAYS DONALD C ALEXANDER PARTNER IN THE LAW FIRM OF AKIN GUMP STRAUSS HAUER & FELD IN WASHINGTON AND A FORMER INTERNAL REVENUE SERVICE COMMISSIONER THE IRS CONFIRMS THAT IS THE CASE THE ALTERNATIVE MINIMUM TAX IS DESIGNED TO MAKE SURE EVERYONE PAYS AT LEAST SOME TAXES UNDER THE NEW LAW THE TOP AMT RATE RISES TO 28 EFFECTIVE LAST JAN 1 FROM 24 PREVIOUSLY ALTHOUGH THAT MAY SOUND LOW THE AMT CAN PRODUCE UNPLEASANTLY LARGE TAX BILLS BECAUSE IT APPLIES TO MORE OF A TAXPAYER'S INCOME THAN THE ORDINARY RATES THE IRS ESTIMATES 225000 RETURNS REFLECTED THE ALTERNATIVE MINIMUM TAX IN 1991 THIS STRETCHOUT PROVISION FOR INCOME TAXES ALSO DOESN'T APPLY TO ESTATES AND TRUSTS ONE FINAL CAVEAT IF YOU WANT TO TAKE ADVANTAGE OF THIS OFFER DON'T BE DELINQUENT IN PAYING ANY OF THOSE INSTALLMENTS THE LAW WARNS IF THE TAXPAYER DOES NOT PAY ANY INSTALLMENT UNDER THIS SECTION ON OR BEFORE THE DATE PRESCRIBED FOR ITS PAYMENT THE GOVERNMENT SHALL IMMEDIATELY TERMINATE THE EXTENSION AND THE WHOLE OF THE UNPAID TAX SHALL BE PAID ON NOTICE AND DEMAND BY UNCLE SAM SEE RELATED STORY AND MIXED NEWS FOR SAVINGS PLANS WSJ AUG 11 1993 9308110023 930811 CLINTON SIGNS DEFICIT BILL HAILS LANDMARK' PROGRAM WASHINGTON PRESIDENT CLINTON SIGNED INTO LAW HIS HARDWON ECONOMIC PROGRAM A BILL THAT RESTRAINS SPENDING AND RAISES TAXES TO REDUCE PROJECTED FEDERAL BUDGET DEFICITS BY 496 BILLION OVER THE NEXT FIVE YEARS IN A SOUTH LAWN CEREMONY MR CLINTON LABELED THE BILL LANDMARK LEGISLATION HE PRAISED IT FOR ITS DEFICITCUTTING AS WELL AS ITS BUSINESS TAX INCENTIVES AND ITS INCREASED SPENDING FOR THE WORKING POOR HE SAID IT ALREADY HAD BEGUN TO HELP AVERAGE AMERICANS BY BRINGING DOWN INTEREST RATES MR CLINTON WARNED HOWEVER THAT MORE TOUGH VOTES LAY AHEAD AND ONCE AGAIN CALLED FOR BIPARTISANSHIP TO REPLACE THE SINGLEPARTY VOTING OF THE BUDGET PLAN THIS IS A BEGINNING HE SAID THE BILL RAISES INCOMETAX RATES ON THE WEALTHIEST AMERICANS AND INCREASES THE TOP CORPORATE TAX RATE TO 35 FROM THE 34 IT ALSO INCREASES BY 43 CENTS A GALLON THE TAX ON GASOLINE AND OTHER TRANSPORTATION FUELS EFFECTIVE OCT 1 MORE THAN HALF OF THE DEFICIT REDUCTION IN THE MEASURE 255 BILLION OVER FIVE YEARS REPRESENTS CUTBACKS FROM PROJECTED LEVELS IN SPENDING ON A VARIETY OF GOVERNMENT PROGRAMS ESPECIALLY MEDICARE WHICH PROVIDES HEALTH COVERAGE TO THE ELDERLY AND DISABLED ADDITIONAL TAX SUBSIDIES ARE GIVEN TO SMALL BUSINESSES REALESTATE DEVELOPERS AND CORPORATIONS THAT DO LARGE AMOUNTS OF RESEARCH 9308110022 930811 SOUTHERN PACIFIC RAIL MAKES INITIAL OFFERING OF STOCK PRICE RISES NEW YORK SOUTHERN PACIFIC RAIL CORP MADE AN INITIAL PUBLIC OFFERING OF STOCK WHICH ROSE TO A PREMIUM FOLLOWING THE INITIAL OFFERING OF 30 MILLION SHARES PRICED AT 1350 EACH SHARES OPENED ON THE NEW YORK STOCK EXCHANGE AT 1425 AND CLOSED AT 15125 ON VOLUME OF 86 MILLION SHARES THE COMPANY AND CERTAIN SHAREHOLDERS ALSO OFFERED UNDERWRITERS THE OPTION TO PURCHASE 45 MILLION SHARES TO COVER ANY OVERALLOTMENTS THE SAN FRANCISCO RAILROAD COMPANY ALSO ANNOUNCED THE OFFERING OF 375 MILLION OF 9375 SENIOR SECURED NOTES DUE 2005 PROCEEDS WILL BE USED TO PAY DOWN DEBT PURCHASE EQUIPMENT THAT IS UNDER LEASE REDEEM PREFERRED STOCK AND FOR GENERAL CORPORATE PURPOSES THE COMPANY WHICH OPERATES A 15000MILE FREIGHT RAIL SYSTEM HAD ABOUT 29 BILLION IN REVENUE LAST YEAR WITH THE COMPLETION OF THE OFFERING PHILIP F ANSCHUTZ CHAIRMAN OF THE COMPANY CONTINUES TO HOLD ABOUT 56 OF THE COMPANY A MORGAN STANLEY & CO AFFILIATE CONTROLS ABOUT 15 OF THE SHARES OUTSTANDING MORGAN STANLEY IS A UNIT OF MORGAN STANLEY GROUP INC IF THE UNDERWRITERS' OVERALLOTMENT OPTION IS EXERCISED MR ANSCHUTZ AND MORGAN STANLEY WILL SEE THEIR PERCENTAGE HOLDINGS DECREASE SLIGHTLY BUT MR ANSCHUTZ WILL CONTINUE TO HOLD A MAJORITY OF THE COMPANY'S SHARES OUTSTANDING 9308110021 930811 AND MIXED NEWS FOR SAVINGS PLANS BY ELLEN E SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S GOOD NEWS AND BAD NEWS ABOUT THE IMPACT OF THE NEW TAX LAW ON TAXDEFERRED RETIREMENT SAVINGS PLANS THE GOOD NEWS IS THAT CONTRARY TO MOST MEDIA REPORTS THE LAW WON'T SLASH THE AMOUNT MOST PEOPLE CAN CONTRIBUTE TO 401K PLANS THAT'S DESPITE A REDUCTION IN THE COMPENSATION THAT CAN BE TAKEN INTO ACCOUNT WHEN DETERMINING ALLOWABLE CONTRIBUTIONS TO 150000 FROM 235840 FOR 401K PLANS I DON'T CONSIDER THE CHANGE IN THE NEW LAW DRAMATIC OR SIGNIFICANT SAYS ALAN GLICKSTEIN A PARTNER AT KWASHA LIPTON A BENEFIT AND COMPENSATION CONSULTING FIRM IN FORT LEE NJ THE BAD NEWS IS THAT PEOPLE MAKING MORE THAN 150000 WHO HAVE PROFITSHARING PLANS TO WHICH THEIR EMPLOYERS CONTRIBUTE A FLAT PERCENTAGE OF SALARY COULD LOSE HUNDREDS OR EVEN THOUSANDS OF DOLLARS THE SAME APPLIES TO PEOPLE WITH KEOGHS FOR SELFEMPLOYMENT INCOME AND SEPS SIMPLIFIED EMPLOYEE RETIREMENT PLANS FOR SELFEMPLOYED INDIVIDUALS OR GROUPS EVERYONE MAKING MORE THAN 150000 IN THESE TYPES OF PLANS WILL BE AFFECTED SAYS DAVID WRAY PRESIDENT OF THE PROFIT SHARING COUNCIL OF AMERICA CHICAGO HERE'S WHAT THE NEW LEGISLATION REALLY MEANS AND WHAT PEOPLE CAN DO IF THEY THINK THEY WILL BE AFFECTED UNDER THE TAX LAW BOTH OLD AND NEW ONLY A CERTAIN AMOUNT OF AN EMPLOYEE'S COMPENSATION CAN BE TAKEN INTO ACCOUNT WHEN MAKING CONTRIBUTIONS TO A TAXDEFERRED RETIREMENT PLAN IN 1993 THIS AMOUNT WAS 235840 EVEN IF THE EMPLOYEE EARNED A MILLION DOLLARS FOR INSTANCE AN EMPLOYER COULD COUNT ONLY 235840 WHEN CALCULATING HOW MUCH MONEY COULD GO INTO THE EMPLOYEE'S 401K OR PROFITSHARING PLAN THE NEW LAW REDUCES THE COMPENSATION LIMIT TO 150000 EFFECTIVE FOR BENEFITS ACCRUING AFTER 1993 THE PLANS THAT WILL BE THE MOST SIMPLY AFFECTED ARE PROFITSHARING PLANS AT COMPANIES THAT CONTRIBUTE A STRAIGHT PERCENTAGE OF PAY FOR ALL EMPLOYEES UNDER THE NEW LAW ANYONE MAKING MORE THAT 150000 WILL FIND THEIR RETIREMENT BENEFIT REDUCED UNDER THE PREVIOUS LAW SOMEONE EARNING 200000 AT A COMPANY THAT CONTRIBUTES 15 OF PAY WOULD HAVE RECEIVED 30000 NOW HE WILL RECEIVE ONLY 15 OF 150000 OR 22500 DEPENDING ON ONE'S INCOME THE MAXIMUM AMOUNT AN INDIVIDUAL EMPLOYEE COULD LOSE IS 7500 WHICH IS THE DIFFERENCE BETWEEN THE OLD LIMIT OF 30000 AND THE NEW EFFECTIVE LIMIT OF 22500 THE SAME LIMITS APPLY TO PEOPLE WITH SEPS AND KEOGHS BUT THERE MAY BE A SILVER LINING TO THIS TAX CLOUD FOR MANY AFFECTED EMPLOYEES PENSION EXPERTS ACROSS THE COUNTRY SAY THAT MANY OF THE HIGHLY COMPENSATED PEOPLE IN PROFITSHARING PLANS WHO WILL LOSE SOME OF THEIR BENEFITS UNDER THE NEW LAW WILL BE MADE WHOLE BY THEIR EMPLOYERS EMPLOYERS WILL MERELY SHIFT THE MONEY EMPLOYEES WOULD HAVE RECEIVED INTO NONQUALIFIED RETIREMENT PLANS FOR TOPPAID EMPLOYEES THESE PLANS WHICH MOST LARGE COMPANIES HAVE TYPICALLY INCLUDE EXCESS PLANS WHICH PAY EXECUTIVES THE AMOUNTS THAT THEY WOULD HAVE RECEIVED IN 401K AND PROFITSHARING PLANS IF THERE WERE NO GOVERNMENT LIMITS IMPOSED OTHER PLANS INCLUDE SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS OR SERPS BENEFIT AND COMPENSATION EXPERTS ALSO BELIEVE THAT EMPLOYERS WILL EXTEND THESE PLANS TO A LARGER GROUP OF EMPLOYEES THANKS TO THE NEW LAW MANY ALREADY HAVE THESE EXCESSPLAN ARRANGEMENTS SO IT'S SIMPLE A MATTER OF EXTENDING THEM TO A LARGER NUMBER OF PEOPLE SAYS KWASHA'S MR GLICKSTEIN EMPLOYERS MAY ALSO EXTEND THE SAME CONSIDERATION TO EXECUTIVES WITH 401K PLANS IF IT TURNS OUT THAT THEY ARE AFFECTED BUT FEW TOPPAID PEOPLE WILL BE AFFECTED BY THE NEW LAW BENEFIT EXPERTS SAY CURRENTLY THEY CAN USUALLY CONTRIBUTE ONLY UP TO ABOUT 6 OF PAY TO A TOTAL OF 8994 MANY ACCOUNTANTS AND BENEFIT EXPERTS RANG ALARM BELLS BEFORE THE TAX PACKAGE WAS PASSED SAYING THAT PEOPLE EARNING BETWEEN 60000 AND 80000 WOULD BE UNINTENDED VICTIMS OF THE NEW TAX LAW BUT BENEFIT EXPERTS CONCEDE THAT THIS RISK HAS BEEN OVERBLOWN IN REAL TERMS THE CHANGE ISN'T THAT SIGNIFICANT SAYS FRANK ROQUE A PARTNER WITH HEWITT ASSOCIATES A BENEFITCONSULTING FIRM IN LINCOLNSHIRE ILL HERE'S HOW IT WORKS AND WHY IT PROBABLY WON'T AFFECT YOU WHEN PLAN ADMINISTRATORS FIGURE OUT WHAT PERCENTAGE OF PAY EMPLOYEES CAN CONTRIBUTE TO 401K PLANS THEY HAVE TO DIVIDE THE EMPLOYEES INTO TWO GROUPS HIGHPAID AND LOWPAID THEY DO THIS SO THEY CAN FIGURE OUT THE AVERAGE OF WHAT EACH GROUP CONTRIBUTES THIS IS TO MAKE SURE THE HIGHLY PAID GROUP CONTRIBUTES ON AVERAGE NO MORE THAN GENERALLY TWO PERCENTAGE POINTS MORE THAN THE LOWPAID GROUP A PENSION LAW REQUIREMENT SO IF THE LOWPAID GROUP CONTRIBUTES 4 THE HIGHLY PAID GROUP CAN CONTRIBUTE NO MORE THAN 6 IF THE HIGHPAID GROUP AVERAGE IS TOO HIGH THE GROUP HAS TO REDUCE ITS AVERAGE OR THE PLAN WON'T CONFORM TO THE LAW DONALD SEGAL A BENEFIT CONSULTANT WITH SEGAL CO A NEW YORKBASED CONSULTING FIRM OFFERS THIS EXAMPLE A HIGHLY PAID GROUP INCLUDES TWO EMPLOYEES ONE EARNS 250000 AND CONTRIBUTES THE MAXIMUM ALLOWED BY LAW OR 8994 THAT'S 38 OF HIS ELIGIBLE PAY THE OTHER MEMBER OF THE HIGHPAID GROUP EARNS 70000 AND CONTRIBUTES SAY 7000 THIS ASSUMES THE PLAN LETS HIM CONTRIBUTE AS MUCH AS 10 AND HE CAN AFFORD TO DO IT THE GROUP AVERAGE FOR THE HIGHLY PAID IS THUS 69 38 PLUS 10 DIVIDED BY 2 NOW IF THE LOWERPAID GROUP CONTRIBUTES AN AVERAGE OF NO LESS THAN 49 THE PLAN IS IN COMPLIANCE BUT IF THE LOWERPAID EMPLOYEES CONTRIBUTE AN AVERAGE OF LESS THAN THAT THEN THE HIGHERPAID EMPLOYEES WILL HAVE TO CUT BACK ON THEIR CONTRIBUTIONS MR SEGAL SAYS HERE'S WHERE THE NEW LIMITS ON ELIGIBLE SALARY COME IN BECAUSE THE NEW CEILING KICKS IN AT 150000 THE 8994 CONTRIBUTED BY THE HIGHESTPAID EMPLOYEE REPRESENTS ABOUT 6 OF HIS ELIGIBLE PAY THIS BRINGS THE HIGHPAID GROUP AVERAGE TO 8 WHICH IS SLIGHTLY MORE THAN ONE PERCENTAGE POINT ABOVE THE LEGAL LIMIT OF 69 TO BRING THE PLAN INTO COMPLIANCE THE EMPLOYER COULD MAKE THE PERSON EARNING 250000 CUT BACK OR FORCE THE 70000 EARNER TO ABSORB THE PAIN BY REDUCING HIS OWN CONTRIBUTIONS BUT EVEN IF THE 70000 EMPLOYEE DOES HAVE TO CUT BACK THE MOST HE WOULD HAVE TO TRIM IS PERHAPS 05 PERCENTAGE POINT SAYS MR ROQUE IT'S HARD TO PIN DOWN SINCE THERE ARE SO MANY VARIABLES HE SAYS FURTHERMORE EMPLOYEES EARNING 60000 TO 80000 THE RANGE THAT PEOPLE FRETTED WOULD BE UNFAIRLY PLASTERED BY THE NEW LAW RARELY CONTRIBUTE THE MAXIMUM THEY ARE ALLOWED MOST PEOPLE JUST CAN'T AFFORD IT SAYS MR ROQUE EVEN IF SOME EMPLOYERS DISCOVER A PROBLEM THEY CAN REDUCE THE EFFECT BY TINKERING WITH THE PERCENTAGE EMPLOYEES CAN CONTRIBUTE AND SIGNING UP MORE LOWERPAID EMPLOYEES TO THE PLAN SOME EMPLOYERS ALREADY TELL TOPPAID EMPLOYEES NOT TO PARTICIPATE SO THE UPPERMIDDLEINCOME EMPLOYEES CAN CONTRIBUTE MORE SEE RELATED STORY YOUR MONEY MATTERS UNCLE SAM HAS OFFER TAXPAYERS SHOULDN'T REFUSE WSJ AUGUST 11 1993 9308110020 930810 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JULY 28 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9308110019 930811 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN GERALD K DINSMORE 44 YEARS OLD WAS NAMED VICE PRESIDENTFINANCE FOR GTE TELEPHONE OPERATIONS HE SUCCEEDS JOHN L HUME 53 WHO WILL RETIRE ON AUG 21 FROM THIS TELECOMMUNICATIONS COMPANY 9308110018 930811 FOREIGN EXCHANGE US CURRENCY GAINS AS STERLING DROPS BUT DOLLAR CHANGES LITTLE AGAINST YEN BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK STERLING FELL TUESDAY AND SOME OF THE FUNDS RUSHING OUT OF THE POUND RACED INTO THE DOLLAR LEAVING THE US CURRENCY HIGHER AGAINST MOST OF ITS EUROPEAN COUNTERPARTS IT WAS LITTLE CHANGED AGAINST THE YEN TRADERS BLAMED STERLING'S DROP ON TECHNICAL SELLING IN A THIN MARKET AS WELL AS ON REPATRIATION OF EUROPEAN FUNDS THAT HAD SOUGHT HAVEN IN STERLING DURING THE RECENT CRISIS IN THE EXCHANGE RATE MECHANISM OR ERM OF THE EUROPEAN MONETARY SYSTEM LATE IN NEW YORK STERLING HAD FALLEN TO 14672 A SIXWEEK LOW COMPARED WITH 14915 LATE MONDAY IN NEW YORK THE BRITISH CURRENCY ALSO WAS AT 25171 MARKS COMPARED WITH 25310 MARKS MONDAY ABOUT NOON WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10422 YEN AND AT 17161 MARKS THE DOLLAR MEANWHILE WAS QUOTED AT 17170 MARKS UP FROM 16975 MARKS THE US CURRENCY ALSO WAS CHANGING HANDS AT 10470 YEN DOWN FROM 10489 YEN STERLING WAS SOLD HEAVILY AGAINST THE MARK TRADERS SAID AS FUNDS RETURNED TO CONTINENTAL EUROPE A BREAK TUESDAY IN GERMANY'S RECENT PATTERN OF INTERESTRATE EASINGS ALSO HURT THE POUND AS DID RUMORS THAT SOME EUROPEAN COUNTRIES PLAN TO ISSUE STERLINGDENOMINATED BONDS AND THEN SELL THE PROCEEDS FOR MARKS AS IT FELL THE POUND TRIGGERED NUMEROUS PRESET STOPLOSS ORDERS TRADERS SAID EXACERBATING ITS DECLINE ALSO WEIGHING ON STERLING WAS A BANK OF ENGLAND REPORT RELEASED AFTER THE CLOSE OF EUROPEAN TRADING THE CENTRAL BANK PREDICTED THAT UNDERLYING UK INFLATION WOULDN'T RISE ABOVE 3 BEFORE SEPTEMBER 1993 DOWN FROM ITS PREVIOUS FORECAST OF 35 INFLATION THE BANK DIDN'T MENTION INTERESTRATE CUTS IN ITS REPORT BUT MANY INVESTORS BELIEVE LOWER INFLATION INCREASES THE BRITISH BANK'S FLEXIBILITY TO CUT ITS 6 BASE RATE IF THEY CAN GET RATES LOWER WITHOUT HAVING INFLATION COME BACK THEY PROBABLY WILL SAID FRANK PUSATERI A VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT BANK OF BOSTON THE POSSIBILITY THAT BRITISH RATES MIGHT FALL FASTER THAN GERMAN RATES ALSO DRAGGED THE POUND AGAINST THE MARK GERMANY'S MINIMUM INTEREST RATE THE 675 DISCOUNT RATE IS ALREADY WELL ABOVE BRITAIN'S HIGHER RATES MAKE A CURRENCY MORE ATTRACTIVE BY INCREASING THE RETURN ON DEPOSITS DENOMINATED IN THAT CURRENCY GERMANY'S CENTRAL BANK BEGGED THE COMPARISON TUESDAY BY MOVING TO STABILIZE GERMAN MONEYMARKET RATES AT A LEVEL HIGHER THAN SOME RATES OFFERED LAST WEEK THE BUNDESBANK ANNOUNCED THAT IT WAS OFFERING FIXEDRATE 14DAY REPURCHASERATE AGREEMENTS AT 680 UNCHANGED FROM LAST WEEK LAST WEEK HOWEVER 28DAY REPO AGREEMENTS ALSO HAD BEEN ACCEPTED AT RATES AS LOW AS 670 NO SUCH ARRANGEMENT WAS AVAILABLE THIS WEEK BUT TRADERS SAID THAT TUESDAY'S ACTION HAD LITTLE RELEVANCE TO THE BUNDESBANK'S LONGRANGE POLICY OF SLOWLY EASING INTEREST RATES BILLIONS OF MARKS HAD BEEN POURED INTO THE MARKET AS CENTRAL BANKS SOLD THE GERMAN CURRENCY DURING JULY'S INTERVENTIONS THEY SAID AND LAST WEEK'S REPO RATES INEVITABLY HAD EASED TO REFLECT THAT LIQUIDITY WITH THE FIXED REPO TUESDAY THE BUNDESBANK WAS MERELY RETURNING REPO RATES TO ABOVE THE TRADITIONAL FLOOR DISCOUNT RATE MEANWHILE THE CANADIAN DOLLAR WAS PRESSURED SLIGHTLY TUESDAY AFTER THE BANK OF CANADA'S BANK RATE OR THE RATE AT WHICH THE CENTRAL BANK LENDS TO FINANCIAL INSTITUTIONS FELL TO 420 ITS LOWEST LEVEL SINCE 1964 DAVID SOLIN A MANAGER OF FOREIGNCURRENCY SALES AT TORONTO DOMINION BANK SAID MANY INVESTORS WHO WERE SHORT US DOLLARS JUMPED IN TO COVER THEIR POSITIONS AFTER THE BANK RATE CAME IN LOWER THAN EXPECTED THE US DOLLAR CLIMBED AS HIGH AS 12935 CANADIAN DOLLARS IN TUESDAY'S TRADING POKING THROUGH ITS RECENT RESISTANCE LEVEL AROUND 12930 CANADIAN DOLLARS 9308110017 930811 POLITICS & POLICY AS PROSPECTS IMPROVE FOR PASSAGE OF BRADY BILL NRA OPPONENTS DEBATE WHAT SHOULD COME NEXT BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS SCHEDULED TO OUTLINE HIS VIEWS ON CRIME LEGISLATION IN A ROSE GARDEN CEREMONY TODAY AND HE IS EXPECTED TO URGE CONGRESS TO PASS THE BRADY BILL SETTING A NATIONAL WAITING PERIOD FOR THE PURCHASE OF HANDGUNS HE HAS VOWED HE WILL SIGN IT INTO LAW WITH THE PRESIDENT'S SUPPORT THE CHANCES OF PASSING THE BRADY BILL ARE IMPROVED BUT NOBODY BELIEVES THAT PASSAGE OF THE BILL WOULD MEAN THE BAD GUYS WILL SUDDENLY BE DISARMED OR THAT THE KILLING WILL STOP AMERICANS OWN 200 MILLION GUNS 40 MILLION OF THEM HANDGUNS IN 1990 THE LATEST YEAR FOR WHICH FIGURES EXIST 37155 AMERICANS DIED FROM GUNSHOT WOUNDS INCLUDING 4941 PEOPLE UNDER THE AGE OF 20 AMERICANS INCREASINGLY FRIGHTENED BY URBAN RIOTING CULT ARSENALS AND CASUAL DRIVEBY SHOOTINGS ARE MUCH MORE LIKELY TO BUY GUNS THAN TO GIVE THEM UP THE BRADY BILL WON'T CHANGE THAT IT'S NECESSARY IT'S RATIONAL DANIEL WEBSTER AN INSTRUCTOR AT THE INJURY PREVENTION CENTER AT JOHNS HOPKINS UNIVERSITY SAYS OF THE BILL BUT IT HAS SIGNIFICANT LIMITS TO WHAT IT CAN ACCOMPLISH WE NEED TO BREAK AWAY FROM CONCENTRATING ON THIS LEGISLATION TO GET AT THE ROOTS OF THE PROBLEM THERE IS IMMENSE DISAGREEMENT ON WHAT THESE NEXT STEPS MIGHT BE YET BEYOND THE EMOTIONALLY CHARGED BRADY BILL IT'S NAMED FOR FORMER WHITE HOUSE PRESS SECRETARY JAMES BRADY BADLY WOUNDED AND CRIPPLED FOR LIFE IN THE ASSASSINATION ATTEMPT ON PRESIDENT REAGAN'S LIFE SOME PROVOCATIVE NOTIONS ARE BEING FLOATED ABOUT WHAT MIGHT BE DONE TO BEGIN SILENCING THE GUNS A COUPLE OF THESE NOTIONS ARE EVEN SUPPORTED BY THE NATIONAL RIFLE ASSOCIATION SHARPLY REDUCE THE NUMBER OF AMERICANS LICENSED TO SELL GUNS THERE ARE 280000 DEALERS PEDDLING GUNS MOST OF THEM WORKING OUT OF THEIR HOMES OR THE TRUNKS OF THEIR CARS THEY PAY 30 FOR A THREEYEAR LICENSE JOHNS HOPKINS'S MR WEBSTER URGES RAISING THE FEE TO 2500 AND REQUIRING THAT EVERY DEALER MAINTAIN A SHOP FROM WHICH TO DO BUSINESS JAMES JAY BAKER THE NRA'S CHIEF LOBBYIST SAYS THE PROPOSAL IS REASONABLE SHARPLY INCREASE THE PENALTY FOR SELLING ILLEGAL GUNS DAVID B KOPEL AN NRA DEFENDER WHO BELIEVES THE NATION WOULD BE SAFER IF EVEN MORE HOMES CONTAINED GUNS HAS PROPOSED THE IDEA AND THE NRA THINKS IT WOULD BE HELPFUL WRITING IN THE HERITAGE FOUNDATION'S MAGAZINE POLICY REVIEW MR KOPEL SAYS THAT SELLING A HOT' 75 PISTOL OUGHT TO BE A MORE SERIOUS OFFENSE THAN SELLING A HOT' 75 TOASTEROVEN THERE ARE PLENTY OF OTHER IDEAS THAT THE GUN LOBBY EITHER OPPOSES OR BELIEVES TO BE UNWORKABLE ONE IDEA THAT HAS BEEN WIDELY FLOATED WOULD HAVE THE FEDERAL GOVERNMENT INCREASE THE TAX AMERICANS PAY TO BUY LEGAL GUNS IT'S NOW 11 FOR LONG GUNS AND 10 FOR HANDGUNS AND IT PRODUCES ABOUT 150 MILLION A YEAR REFORMERS TALK ABOUT DOUBLING THE TAX PERHAPS USING THE ADDED REVENUE TO HELP PAY FOR HEALTH CARE RIDICULOUS SAYS THE NRA'S MR BAKER GUNS AREN'T A PUBLIC HEALTH PROBLEM CRIMINALS ARE THE REFORMERS ARGUE IT ISN'T THE MONEY THAT WOULD BE COLLECTED THAT'S SO IMPORTANT IT'S THE SOCIAL BENEFITS THAT WOULD TAKE PLACE RAISING THE PRICE OF A NEW GUN MAKES A DIFFERENCE IN THE PRICE OF AN ILLEGAL GUN ON THE STREET SAYS PHILIP COOK A PUBLICPOLICY PROFESSOR AT DUKE UNIVERSITY MAYBE A TEENAGE CRIMINAL DECIDES HE CAN'T AFFORD TO BUY A GUN IT'S TOUGH FOR A 15YEAROLD TO BUY A CAR WE HAVE TO MAKE IT JUST AS TOUGH FOR HIM TO BUY A GUN GUNCONTROL SUPPORTERS ALSO CALL FOR FEDERAL LEGISLATION TO RATION THE NUMBER OF GUNS ANYONE CAN BUY LEGALLY MODELED ON A BILL SIGNED INTO LAW BY GOV DOUGLAS WILDER IN VIRGINIA IT WOULD LIMIT PURCHASERS TO ONE GUN A MONTH THE NRA ARGUES THAT RATIONING VIOLATES THE CONSTITUTIONAL RIGHT OF AMERICANS TO OWN AND BEAR AS MANY ARMS AS THEY WANT THE GUN LOBBY ARGUES THAT GUNCONTROL LAWS DON'T WORK THE REFORMERS RESPOND THAT GUNCONTROL LAWS DON'T WORK BECAUSE MOST OF THE TIME THEY AREN'T ENFORCED MARK MOORE A PROFESSOR OF CRIMINAL JUSTICE AT HARVARD UNIVERSITY SAYS WAYS MUST BE FOUND TO KEEP THE GUNS OUT OF THE HANDS OF THE BAD GUYS THE BRADY BILL WITH ITS FIVEDAY WAITING PERIOD TO BUY A HANDGUN MIGHT HELP HE SAYS BUT HE WOULD TOUGHEN ENFORCEMENT BY GIVING COPS PORTABLE MAGNETOMETERS LIKE THE ONES USED TO SCREEN AIRLINE PASSENGERS TO CHECK SUSPECTS FOR ILLEGAL CONCEALED WEAPONS THE NRA'S MR BAKER SAYS HE ISN'T OPPOSED TO USING MAGNETOMETERS HE SIMPLY DOUBTS THEY WOULD DO MUCH GOOD A NEW ELEMENT HAS BEEN ADDED TO THE GUN DEBATE IN THE LAST FEW YEARS PUBLIC HEALTH SPECIALISTS AND THEY TOO HAVE SOME IDEAS THEY POINT TO A SERIOUS PROBLEM INSIDE PEOPLE'S HOMES WHERE THOUSANDS OF AMERICANS ARE KILLED OR WOUNDED EVERY YEAR IN HOMICIDES SUICIDES OR GUN ACCIDENTS SAFER GUNS SOME OF THESE SPECIALISTS SAY WOULD HELP DR ARTHUR KELLERMAN A PROFESSOR AND DIRECTOR OF THE EMERGENCY DEPARTMENT AT THE UNIVERSITY OF TENNESSEE MEDICAL CENTER IN MEMPHIS SAYS THERE IS NO REASON HANDGUNS IN THE HOME COULDN'T BE KIDPROOF JUST LIKE CAPS ON MEDICINE BOTTLES SMITH & WESSON HE SAYS MADE A CHILDPROOF GUN FOR 80 YEARS AND BRAGGED IT WAS NEVER USED TO KILL A CHILD BUT THEY PULLED IT OFF THE MARKET NOW THEY ARE DELIBERATELY MAKING A HAZARDOUS WEAPON WHEN THEY KNOW FROM THEIR OWN EXPERIENCE THEY CAN MAKE A SAFER ONE A SPOKESMAN FOR TOMKINS PLC'S SMITH & WESSON SAYS THE GUN KNOWN AS THE LEMON SQUEEZER BECAUSE YOU HAD TO SQUEEZE HARD ON THE HANDLE BEFORE YOU COULD PULL THE TRIGGER WAS PRODUCED FROM 1887 UNTIL SHORTLY BEFORE WORLD WAR II WHEN IT WAS DROPPED BECAUSE HARDLY ANYONE WAS BUYING IT ONE CONTINUING PROBLEM IN THE GUN DEBATE IS THE DISAGREEMENT OVER THE DATA THE CONSUMER PRODUCT SAFETY COMMISSION DOESN'T INCLUDE DATA ABOUT INJURIES AND DEATHS FROM GUNSHOTS AS PART OF ITS NATIONAL ELECTRONIC INJURY SURVEILLANCE SYSTEM THE REASON WE ARE SPECIFICALLY EXCLUDED BY FEDERAL STATURE FROM INCLUDING GUN INJURIES SAYS A CPSC SPOKESMAN 9308110016 930811 TECHNOLOGY BRIEF BIOSYS LOSS WIDENED IN 2ND QUARTER ON ACQUISITION'S R&D COSTS BIOSYS SAID THE RESEARCH AND DEVELOPMENT EXPENSES OF AN ACQUISITION CONTRIBUTED TO A WIDENING OF ITS SECONDQUARTER NET LOSS TO 54 MILLION OR 69 CENTS A SHARE FROM 942000 OR 13 CENTS A SHARE A YEAR EARLIER THE BIOTECHNOLOGY CONCERN BASED IN PALO ALTO CALIF ACQUIRED AGRISENSE IN APRIL AND BIOSYS SAID IT WAS TAKING A 37 MILLION CHARGE FOR THE COMPANY'S R&D EXPENSES THE COMPANY SAID THE REST OF THE LOSS WAS CAUSED BY INCREASED OPERATING EXPENSES ALTHOUGH OPERATING EXPENSES DECREASED AS A PERCENTAGE OF REVENUE REVENUE ROSE 97 TO 29 MILLION FROM 15 MILLION THE COMPANY ALSO NAMED EDWIN C QUATTLEBAUM PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING VANKAT S SOHONI WHO WILL REMAIN CHIEF EXECUTIVE OFFICER WITH THE NEW TITLE OF VICE CHAIRMAN MR QUATTLEBAUM WAS VICE PRESIDENT OF MARKETING AND SALES 9308110015 930811 BUSINESS BRIEF DISCOUNT CORP OF NEW YORK SHAREHOLDERS APPROVE PLAN TO BE ACQUIRED BY ZIONS DISCOUNT CORP OF NEW YORK SHAREHOLDERS APPROVED A PREVIOUSLY ANNOUNCED PLAN FOR THE COMPANY TO BE ACQUIRED BY A ZIONS BANCORP UNIT IN A 65 MILLION TRANSACTION THE ACQUISITION AGREEMENT SCHEDULED FOR CLOSING TODAY CALLS FOR SHAREHOLDERS OF DISCOUNT CORP A PRIMARY TREASURY BOND DEALER TO RECEIVE AN ESTIMATED 8 CASH FOR EACH SHARE HELD ZIONS OF SALT LAKE CITY WILL ASSUME CERTAIN DISCOUNT OBLIGATIONS NEARLY 75 OF ALL SHARES OUTSTANDING APPROVED THE MEASURE WELL ABOVE THE TWOTHIRDS APPROVAL REQUIRED UNDER TERMS OF THE AGREEMENT DISCOUNT CORP WILL OPERATE AS A DIVISION OF ZIONS FIRST NATIONAL BANK RETAINING ITS NAME AND ITS PRESENT NEW YORK CITY LOCATION ZIONS BANCORP HAS ASSETS OF ABOUT 39 BILLION AND PARTICIPATES IN A FULL RANGE OF BANKING ACTIVITIES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF DISCOUNT CORP CLOSED AT 775 UNCHANGED ZIONS SHARES CLOSED AT 41875 UP 625 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9308110014 930811 LETTERS TO THE EDITOR MANY GERMAN VIRTUES ARE MERELY ILLUSIONS WHILE THE ERRORS IN ROBERT FAGAN'S JULY 19 LETTER RESPONDING TO JOHN FUND'S WURST IDEA GERMAN MODEL WRONG FOR BILL EDITORIAL PAGE JUNE 29 REGARDING GERMANY ARE TOO NUMEROUS TO DISCUSS IN DETAIL THE TWO CHIEF ONES ARE THESE HE IS UNDER THE MISTAKEN IMPRESSION THE GERMAN POLICIES HE AND PRESIDENT CLINTON ARE SO STRUCK BY ARE A PRODUCT OF THE POSTWAR ERA IN REALITY THEY DATE FROM THE LAST CENTURY FRENCH SOLDIERS RETURNING TO THE ALSACE IN 1918 WERE IMPRESSED BY ITS RELATIVE SOCIAL AND ECONOMIC DEVELOPMENT AND ENGLISH JOURNALISTS WERE TESTIFYING TO THE EDUCATIONAL LEVELS AND INDUSTRIOUSNESS OF ITS PEOPLE IN 1870 HE CONFUSES PUBLIC POLICY DIRECTIVES WITH CULTURAL TRAITS THESE LAST ARE DIFFICULT TO IDENTIFY AND EASY TO MISINTERPRET BUT MAKE GERMANY A SAFE AND PLEASANT PLACE TO BE MOST OF ITS NUMEROUS PUBLIC POLICIES SUCH AS THOSE THAT CLOSE DOWN ALL THE SHOPS ON SATURDAY AFTERNOON HAVE THE CONTRARY EFFECT I HAVE A GREAT AFFECTION FOR GERMANY FAMILY GRAVES IN HER NUMEROUS MILITARY CEMETERIES PROBABLY TESTIFY TO TOO MUCH BUT MR FAGAN'S LIST OF VIRTUES WHICH MAY VERY WELL BE MR CLINTON'S ARE BASICALLY A LIST OF ILLUSIONS AND MISCONCEPTIONS ONE DOES NOT KNOW WHETHER TO LAUGH OR CRY AT MR FAGAN'S CRY TO EMULATE GERMAN SUCCESS HOW MANY AMERICANS ARE WILLING TO REGISTER WITH THE POLICE EVERY TIME THEY MOVE ARE YOU WILLING TO SUBMIT THE PROPOSED NAME OF YOUR CHILD TO THE GOVERNMENT FOR APPROVAL AMERICA LEADS IN MANUFACTURING PRODUCTION HAS LESS UNEMPLOYMENT AND HAS SHOWN MORE ECONOMIC GROWTH JOB GROWTH AND TAKEN IN MORE IMMIGRANTS THAN ANY ECONOMY IN THE WORLD WE SHOULD TRY EMULATING OURSELVES NOT SOME EUROPEAN FAILURE 9308110013 930811 ABREAST OF THE MARKET INDUSTRIALS EASE 335 FROM RECORD BUT SOME SAY FALL IS TEMPORARY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE RETREATED FROM MONDAY'S RECORD BUT ANALYSTS DISMISSED THE MODEST SETBACK AS TEMPORARY THE DOW JONES INDUSTRIALS FELL 335 POINTS TO 357273 IN DULL TRADING THE STANDARD & POOR'S 500STOCK INDEX DROPPED 127 TO 44945 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 045 TO 24963 EVEN THE DOW JONES UTILITY AVERAGE WHICH GENERALLY MOVES IN TANDEM WITH BOND PRICES SANK LOSING 112 TO 250 BUT THE DOW JONES TRANSPORTATION AVERAGE SOARED 1261 TO 163027 THANKS TO GAINS IN A NUMBER OF AIRLINE STOCKS VOLUME ON THE BIG BOARD TOTALED 255493940 UP FROM 231737870 SHARES MONDAY ADVANCING ISSUES EDGED OUT DECLINERS 1002 TO 949 PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAID THAT HE THINKS STOCKS PARTICULARLY ISSUES THAT ARE SENSITIVE TO THE ECONOMIC CYCLE ARE HEADED HIGHER I THINK THIS IS INDEED A BREAKOUT IN THE DOW AND WE ARE JUST SEEING A PAUSE SAID MR CANELO WHO THINKS THE INDUSTRIAL AVERAGE COULD SOAR TO 3700 ONE OF THE REASONS HE IS SO OPTIMISTIC IS THAT INTEREST RATES HAVE BEEN SLIDING WHILE CORPORATE EARNINGS HAVE BEEN IMPROVING MR CANELO SAID THAT EXCLUDING INTERNATIONAL BUSINESS MACHINES EARNINGS FOR COMPANIES IN THE S&P 500 ROSE 35 IN THE SECOND QUARTER FROM THE YEARAGO PERIOD MEANWHILE THE YIELD ON THE TREASURY'S 30YEAR BOND CONTINUED TO SLIP YESTERDAY FALLING TO 644 FROM 647 MONDAY AMONG THE HARDEST HIT STOCKS YESTERDAY WERE CONSUMER ISSUES A MORGAN STANLEY INDEX OF THESE STOCKS TUMBLED 211 POINTS TO 18325 PROCTER & GAMBLE SKIDDED 1 1/8 TO 46 1/4 AFTER REPORTING A BIG FOURTHQUARTER LOSS PHILIP MORRIS DROPPED 1 TO 45 7/8 GENERAL MILLS LOST 3/4 TO 58 3/4 AND COLGATEPALMOLIVE EDGED 3/8 POINT LOWER TO 49 PEOPLE ARE STARTING TO REALIZE THAT THE PROBLEMS FOR CONSUMER COMPANIES ARE MORE THAN A TEMPORARY PHENOMENON SAID THOMAS MCMANUS A STOCK MARKET ANALYST AT MORGAN STANLEY THERE HAS BEEN A LITTLE BIT OF DENIAL BUT REALITY IS BEGINNING TO SET IN MOREOVER MR MCMANUS SAID CYCLICAL STOCKS ARE BENEFITING FROM THE VIEW THAT THESE STOCKS HAVE MORE TO GAIN FROM A PICKUP IN THE EUROPEAN ECONOMIES THAN CONSUMER STOCKS A MORGAN STANLEY INDEX OF STOCKS THAT ARE SENSITIVE TO THE ECONOMIC CYCLE INCHED UP 053 TO 27779 THE GAINERS INCLUDED CATERPILLAR WHICH JUMPED 1 3/8 TO 80 3/4 ALUMINUM CO OF AMERICA WHICH CATAPULTED 1 1/2 TO 72 5/8 AND BETHLEHEM STEEL WHICH ADDED 1/2 TO 14 1/8 SOUTHERN PACIFIC RAIL WAS THE MOST ACTIVE STOCK ON THE BIG BOARD GAINING 1 5/8 TO 15 1/8 AN INITIAL PUBLIC OFFERING OF 30 MILLION COMMON SHARES WAS PRICED LATE MONDAY AT 1350 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY PROCTER & GAMBLE SLUMPED 1 1/8 TO 46 1/4 THE CONSUMER PRODUCTS CONCERN LOST 183 A SHARE IN THE FOURTH QUARTER LARGELY BECAUSE OF A HUGE CHARGE PARTLY RELATED TO PLANT CONSOLIDATIONS IN THE YEARAGO PERIOD THE COMPANY EARNED 46 CENTS A SHARE MAXUS ENERGY JUMPED 1 7/8 TO 9 1/2 COLOMBIA'S STATE OIL COMPANY SAID A USLED CONSORTIUM THAT INCLUDES MAXUS HAS DISCOVERED AN OIL FIELD WITH RESERVES ESTIMATED AT MORE THAN TWO BILLION BARRELS WALMART SLIPPED 1/2 TO 25 THE RETAILER'S PROFIT GREW TO 22 CENTS A SHARE IN THE SECOND QUARTER FROM 18 CENTS A SHARE IN THE YEARAGO PERIOD LAST YEAR'S PERSHARE EARNINGS WERE ADJUSTED TO REFLECT A 2FOR1 STOCK SPLIT FEB 25 DILLARD DEPARTMENT STORES FELL 2 3/8 TO 35 THE RETAILER'S SECONDQUARTER PROFIT CLIMBED TO 35 CENTS A SHARE FROM 33 CENTS A SHARE BUT THE EARNINGS WERE BELOW WALL STREET'S EXPECTATIONS TANDY SKIDDED 1 1/8 TO 28 7/8 THE CONSUMER ELECTRONICS CONCERN LOST 101 A SHARE IN THE SECOND QUARTER REFLECTING A LOSS FROM DISCONTINUED OPERATIONS OF 139 A SHARE IN THE YEARAGO PERIOD THE COMPANY EARNED 34 CENTS A SHARE TELECOM NEW ZEALAND SLID 1 5/8 TO 41 7/8 THE COMPANY'S UNION LEADERS SAID THEY HAVE SOUGHT A COURT INJUNCTION TO PREVENT THE COMPANY FROM CARRYING OUT ANY FURTHER RESTRUCTURING MIRAGE RESORTS TUMBLED 2 1/4 TO 47 3/4 OPPENHEIMER ANALYST STEVE EISENBERG CUT HIS INVESTMENT RATING ON THE COMPANY TO MARKET PERFORMER FROM BUY BECAUSE OF ITS PRICE EASTMAN KODAK ROSE FOR THE FOURTH STRAIGHT TRADING DAY ADDING 3/4 TO 60 5/8 A 52WEEK HIGH THE PHOTOGRAPHIC AND CHEMICAL GIANT'S STOCK HAS BEEN RALLYING SINCE THE BOARD OUSTED KAY R WHITMORE AS CHAIRMAN AND CHIEF EXECUTIVE THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ADDED 039 TO 43919 THERE WERE 288 DECLINERS AND 288 GAINERS 9308110012 930811 BUSINESS BRIEF AMSOUTH BANCORP BANKING CONCERN AGREES TO ACQUIRE CITIZENS NATIONAL AMSOUTH BANCORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CITIZENS NATIONAL CORP FOR ABOUT 488 MILLION IN STOCK UNDER THE TRANSACTION AMSOUTH WOULD PAY 1125 OF ITS COMMON STOCK FOR EACH OF CITIZENS NATIONAL'S ROUGHLY FOUR MILLION COMMON SHARES OUTSTANDING UNDER CERTAIN CIRCUMSTANCES THE NUMBER OF AMSOUTH SHARES TO BE EXCHANGED MAY CHANGE BASED ON THEIR PRICE BUT AMSOUTH SAID IT PLANS TO ISSUE ABOUT 15 MILLION SHARES AMSOUTH OF BIRMINGHAM ALA SAID CLOSING FOR THE TRANSACTION EXPECTED NEXT YEAR IS SUBJECT TO APPROVAL BY CITIZENS NATIONAL'S SHAREHOLDERS AND REGULATORY AUTHORITIES AMONG OTHER THINGS CITIZENS NATIONAL BASED IN NAPLES FLA HAD ASSETS OF 2896 MILLION AS OF JUNE 30 AT THAT DATE AMSOUTH HAD ASSETS OF 111 BILLION 9308110011 930811 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN A MALAYSIAN GROUP LAUNCHED A BOYCOTT OF US PRODUCTS TO PROTEST WHAT IT TERMED AMERICAN LEADERSHIP IN UNJUST WESTERN DOMINANCE OF THIRD WORLD AFFAIRS THE MALAYSIAN ACTION FRONT A NONGOVERNMENTAL GROUP OF ABOUT 50 RELIGIOUS SOCIAL JUSTICE AND YOUTH ORGANIZATIONS URGED INITIALLY SNUBBING PRODUCTS IT SAID ARE AMONG THE LEADING SYMBOLS OF AMERICAN CULTURAL AND POLITICAL IMPERIALISM THESE INCLUDE SOFT DRINKS OF PEPSICO INC AND COCACOLA CO RESTAURANTS RUN BY MCDONALD'S CORP AND PEPSICO'S KENTUCKY FRIED CHICKEN CORP UNIT PHILIP MORRIS COS' MARLBORO CIGARETTES AND GASOLINE OF EXXON CORP'S ESSO UNIT AND OF CALTEX PETROLEUM CORP A JOINT VENTURE OF CHEVRON CORP AND TEXACO INC THE GROUP ALSO ASKED MALAYSIA TO BLOCK IMPORTS OF US FILMS AND CARTOONS THAT PORTRAY VIOLENCE THE BOYCOTT COULD HAVE SOME EFFECT AS ONE PARTICIPANT THE MALAYSIAN YOUTH COUNCIL HAS 14 MILLION MEMBERS THE US IS MALAYSIA'S THIRDLARGEST TRADING PARTNER AFTER SINGAPORE AND JAPAN WITH TRADE LAST YEAR TOTALING 127 BILLION THE VIRGIN MEGASTORE IN PARIS WILL CLOSE ON SUNDAYS TO ALLOW THE FRENCH LABOR MINISTRY TO REVIEW ITS POLICY ON RETAIL OPERATIONS THE CHAMPS ELYSEES STORE OWNED BY VIRGIN GROUP LTD OF BRITAIN DEFIED A FRENCH BAN ON SUNDAY OPENINGS LAST WEEKEND DESPITE A 168000 FINE THE COMPANY ALSO HAD THREATENED TO CURTAIL ITS PLANNED EXPANSION IN FRANCE UNLESS SUNDAY OPERATIONS WERE ALLOWED THE DISPUTE HAS TOUCHED OFF A PUBLIC CLAMOR OVER THE ISSUE IN FRANCE AND A PARLIAMENTARY DEBATE IS EXPECTED IN THE FALL JAPAN MAY EXAMINE ITS CURBS ON UNSKILLED FOREIGN WORKERS NEW LABOR MINISTER CHIKARA SAKAGUCHI SAID JAPAN LONG HAS ACCEPTED ONLY WORKERS FROM ABROAD WHO HAVE SPECIAL OR TECHNICAL SKILLS A POLICY MR SAKAGUCHI SAID COULD BECOME AN EMBARRASSMENT MOREOVER AS JAPANESE SOCIETY IS RAPIDLY AGING THE OFFICIAL SAID MORE FOREIGN WORKERS MAY BE NEEDED IN DEALING WITH AN INEVITABLE LABOR SHORTAGE HE ALSO PLANS TO PROPOSE LEGISLATION TO PROMOTE EMPLOYMENT OF THE DISABLED CITING LITTLE INCREASE IN THEIR HIRING CHINA'S INDUSTRIAL PRODUCTION LAST MONTH GREW AT A HEADY 251 PACE THOUGH THAT DID REPRESENT A SHARP SLOWDOWN FROM 302 IN JUNE AS GOVERNMENT MEASURES TO COOL THE ECONOMY BEGAN TO TAKE HOLD GROWTH IN OUTPUT SLOWED THE MOST IN CENTRAL AND WESTERN CHINA BUT KEPT UP A BLAZING PACE IN EASTERN AND SOUTHERN COASTAL REGIONS THE GOVERNMENT HOPES TO BRAKE THE NATION'S ECONOMIC EXPANSION TO 10 FOR 1993 FROM THE CURRENT RATE OF 14 ECUADOR'S ENERGY MINISTER RESIGNED AMID AN INVESTIGATION OF HIS EXPENSES FOR A SOUTHEAST ASIAN TRIP PABLO BAQUERIZO DIDN'T SAY WHY HE QUIT BUT LAST WEEK THREATENED TO STEP DOWN IF HIS HONOR WAS QUESTIONED THE ENERGY MINISTRY WHICH CONTROLS ECUADOR'S OIL PRODUCTION IS ONE OF THE MOST POWERFUL AS EXPORTS OF CRUDE LAST YEAR FINANCED 55 OF THE GOVERNMENT'S BUDGET THE INVESTIGATION WAS ORDERED FOLLOWING ACCUSATIONS THAT MR BAQUERIZO RECEIVED ABOUT 9000 TO COVER HIS EXPENSES IN A TOUR OF CHINA TAIWAN JAPAN AND SOUTH KOREA LAST MONTH TO DRUM UP MARKETS FOR ECUADOR'S CRUDE EXPORTS GROWTH IN JAPANESE BANK LENDING WILL CONTINUE TO BE WEAK AS CORPORATE DEMAND FOR FUNDS STAYS SOFT A BANK OF JAPAN OFFICIAL SAID BANK LENDING IN JULY GREW 1 FROM A YEAR EARLIER THE SLOWEST PACE ON RECORD FOR THE SECOND MONTH IN A ROW FOLLOWING A 13 PICKUP IN MAY THE SLACK LOAN DEMAND STEMS FROM CONTINUING UNCERTAINTIES ABOUT JAPAN'S MORIBUND ECONOMY WHICH FORCE COMPANIES TO POSTPONE CAPITAL SPENDING A MAJOR FORCE IN ANY RECOVERY CHINA'S SPACE INDUSTRY SEEKING CASH AS ITS STATE SUBSIDIES SHRINK OPENED ITS SECRET SITES TO TOURISTS EVEN DURING LAUNCHES THE TOURISM INCOME WILL SUPPLEMENT PROFITS FROM LOFTING COMMERCIAL SATELLITES BEIJING'S CHINA SUPREME HARMONY TRAVEL SERVICE OPENED A SPACE BRANCH BUT CONCEDED DEMAND FOR A 2000 SEVENDAY TOUR MIGHT BE SOFT THE GOVERNMENT LAST MONTH QUIETLY LIFTED BANS ON VISITORS AT CHINA'S MAIN LAUNCH CENTER IN XICHANG IN THE SOUTHWESTERN PROVINCE OF SICHUAN AND AT THE JIUQUAN LAUNCHCONTROL CENTER IN WESTERN CHINA TO SAVE FACE SHOULD LIFTOFFS FAIL AND THEY HAVE JUST ONE LAUNCH HAS BEEN TELEVISED LIVE AND ONLY A FEW FOREIGNERS HAVE BEEN ALLOWED TO WITNESS SATELLITE LOFTINGS THE INAUGURAL TOUR AT XICHANG IS TENTATIVELY SCHEDULED FOR OCTOBER OFFICIALS HOPE TOURISM WILL PUMP CASH INTO THE BELEAGUERED SPACE PROGRAM ITS SUBSIDIES SLASHED TO HELP CONTROL CHINA'S BALLOONING BUDGET DEFICIT TO PREVENT DISAPPOINTMENT IN CASE OF LAUNCH DELAYS SUPREME HARMONY WILL DIVERT TOURS TO ETHNIC MINORITY VILLAGES FOR DANCES AND FOOD ABOUT 250 OILFIELD WORKERS FORCED TALKS ON HIGHER SEVERANCE PAY AFTER BLOCKING THE MEXICO CITY HEADQUARTERS OF THE PEMEX STATE PETROLEUM MONOPOLY FOR NINE HOURS THEY WERE AMONG 10000 WORKERS RECENTLY FIRED IN TABASCO STATE WORKERS IN RUSSIA'S PACIFIC COAST TERRITORY OF PRIMORSKY WHICH INCLUDES VLADIVOSTOK HELD A ONEDAY STRIKE TO DRAMATIZE THEIR ECONOMIC PLIGHT THEY WANT LOWER ENERGY PRICES AND TAXES AND CONTROL OVER TRADE 9308110010 930811 INTERNATIONAL FERRUZZI WILL SLASH SHARE CAPITAL BY 85 AS NEW LOSSES EMERGE GROUP'S FIVEMONTH DEFICIT IS PUT AT 722 MILLION AFTER AUDITORS' REVIEW BY MAUREEN KLINE STAFF REPORTER OF THE WALL STREET JOURNAL MILAN THE MAIN HOLDING COMPANY OF THE TROUBLED FERRUZZI GROUP SAID IT WOULD WRITE DOWN ITS SHARE CAPITAL BY A STAGGERING 85 AND DISCLOSED THAT ITS LOSSES IN THE FIRST FIVE MONTHS OF 1993 WERE MORE THAN TWICE WHAT IT REPORTED JUST SIX WEEKS AGO THE ANNOUNCEMENT BY FERRUZZI FINANZIARIA SPA COMES AMID GROWING SPECULATION THAT THE GROUP 45OWNED BY THE FERRUZZI FAMILY BUT PLEDGED TO A GROUP OF CREDITOR BANKS MAY HAVE TO SELL SOME ASSETS IN A MAJOR RESTRUCTURING TRADING IN SHARES OF FERRUZZI AND ITS MONTEDISON SPA UNIT WERE SUSPENDED YESTERDAY IN MILAN PENDING THE ANNOUNCEMENT THE ACTION WAS THE LATEST BLOW TO FERRUZZI WHICH BECAME ONE OF ITALY'S HIGHESTFLYING CORPORATIONS IN THE 1980S UNDER THE LEADERSHIP OF RAUL GARDINI MR GARDINI WHO HAD MARRIED INTO THE FERRUZZI FAMILY AND TRANSFORMED THE SMALL COMPANY INTO A SPRAWLING CHEMICAL AND AGRIBUSINESS CONGLOMERATE COMMITTED SUICIDE LAST MONTH JUST BEFORE HE WAS TO BE PRESSED TO ANSWER QUESTIONS ABOUT THE COMPANY'S LOSSES AND THE HIGH COST TO ITALY'S GOVERNMENT OF THE 1990 DISSOLUTION OF A JOINT VENTURE WITH STATEOWNED ENERGY COMPANY ENTE NAZIONALE IDROCARBURI FERRUZZI GROUP ACCOUNTS HAVE BEEN THE OBJECT OF A JUDICIAL INVESTIGATION SINCE THE COMPANY ANNOUNCED UNEXPECTED EXTRA 1992 LOSSES ON THE DAY OF THE ANNUAL SHAREHOLDERS' MEETING THE INVESTIGATIONS HAVE RAISED ALLEGATIONS THAT INCLUDE FINANCIAL IRREGULARITIES FALSIFICATION OF COMPANY BALANCE SHEETS MASSIVE BRIBES TO POLITICIANS AND SOPHISTICATED OFFSHORE ACCOUNTING MANEUVERS TO COVER LOSSES THE GROUP'S MANAGEMENT RECENTLY WAS OUSTED AND SEVERAL FORMER MANAGERS WERE DETAINED FOR QUESTIONING THE COMPANY SAID LOSSES WERE 1165 TRILLION LIRE 722 MILLION IN THE FIRST FIVE MONTHS OF THE YEAR INCLUDING 29 BILLION LIRE BROUGHT FORWARD FROM 1992 LOSSES AND 640 BILLION LIRE NOT PREVIOUSLY REPORTED THE NEW LOSSES EMERGED AFTER AUDITING FIRM DELOITTE & TOUCHE WAS CALLED IN TO HELP REWORK THE COMPANY'S ACCOUNTS WHEN A 15 TRILLION LIRA NET DEBT CRISIS FORCED THE COMPANY TO TURN OVER CONTROL TO THE CREDITOR BANKS THE BANKS ARE DEVISING A RESTRUCTURING PLAN FOR FERRUZZI INDUSTRY OFFICIALS SAID MOST OF THE EXTRA LOSSES EMERGED AFTER DELOITTE FOUND INACCURACIES IN PRE1993 ACCOUNTS OF FERRUZZI SUBSIDIARIES IN LUXEMBOURG AND PANAMA THESE INCLUDED MISSING WRITEDOWNS BAD DEBTS AND EXCHANGERATE LOSSES ESPECIALLY AT LUXEMBOURGBASED AIFA HOLDING SA ALCA SA AND PANAMABASED FERRUZZI TRADING INTERNATIONAL SA FERRUZZI'S MAIN INDUSTRIAL HOLDING MONTEDISON ALSO HAD INCLUDED PHARMACEUTICALS ROYALTIES NOT YET COLLECTED IN ITS 1993 ACCOUNTS BUT REMOVED THEM ON ADVICE FROM DELOITTE UNDER ITALIAN LAW WHEN A COMPANY'S LOSSES EXCEED ONETHIRD OF ITS CAPITAL ITS BOARD MUST IMMEDIATELY CALL A SPECIAL SHAREHOLDERS' MEETING TO WRITE DOWN THE SHARE CAPITAL AND THEN INCREASE IT OR CHANGE THE FORM OF THE COMPANY BECAUSE FERRUZZI'S LOSS OF 1165 TRILLION LIRE FOR THE FIRST FIVE MONTHS IS MORE THAN ONETHIRD OF ITS SHARE CAPITAL OF 1370 TRILLION LIRE THE BOARD HAS CALLED A SHAREHOLDERS' MEETING FOR AUG 31 THAT MEETING WILL COINCIDE WITH THE LONGAWAITED ANNOUNCEMENT OF THE RESTRUCTURING PLAN BY MILAN MERCHANT BANK MEDIOBANCA SPA WHICH HEADS THE GROUP OF CREDITOR BANKS NOW CONTROLLING FERRUZZI THE BANKS ARE WIDELY EXPECTED TO SELL OFF SOME OF THE GROUP'S ASSETS WHICH INCLUDE INSURANCE GROUP FONDIARIA SPA US CHEMICAL SUBSIDIARY HIMONT AND FRENCH FOOD CONCERN ERIDANIA BEGHINSAY FONDIARIA IS DIRECTLY OWNED BY FERRUZZI FINANZIARIA WHILE THE OTHER TWO ARE OWNED THROUGH MONTEDISON THE COMPANY SAID IT WOULD REDUCE TOTAL SHARE CAPITAL BY 85 TO A MERE 205 BILLION LIRE FROM 1370 TRILLION LIRE SLASHING THE NOMINAL OR PAR VALUE OF ORDINARY SHARES TO JUST FIVE LIRE FROM 1000 LIRE IT WILL THEN BRING NOMINAL VALUE BACK TO 1000 LIRE BY MAKING 200 OLD SHARES WORTH ONE NEW SHARE SOCALLED SAVINGS SHARES WILL REMAIN UNCHANGED AT 1000 LIRE AS REQUIRED BY LAW ANALYSTS SAID TECHNICAL REQUIREMENTS OF A 1974 LAW ON SAVINGS SHARES WILL FORCE THE COMPANY TO RAISE FRESH CAPITAL BUT FERRUZZI WOULDN'T COMMENT ON WHAT THE BANKS MIGHT DECIDE TO DO THE 1974 LAW REQUIRES THE COMPANY TO HAVE AT LEAST AS MANY ORDINARY AS SAVINGS SHARES AFTER THE WRITEDOWN THE COMPANY WILL HAVE 5850000 ORDINARY SHARES AND 199156830 SAVINGS SHARES SO IT WILL BE FORCED TO CREATE NEW ORDINARY SHARES ANALYSTS SAID THEY EXPECTED FERRUZZI TO ANNOUNCE A WIDER LOSS FOR THE FIRST FIVE MONTHS WE KNEW IT WOULD BE MORE THAN ONETHIRD OF THE CAPITAL SINCE THEY CALLED THE BOARD AND SHAREHOLDERS' MEETINGS SAID MASSIMO CENCI OF MILAN BROKERAGE MILLA & CO SIM SPA BUT THIS IS MORE THAN 80 OF THE CAPITAL A MONTEDISON BOARD MEETING ALSO HAS BEEN ANNOUNCED FOR THIS WEEK AS WELL AS A FLURRY OF MEETINGS AMONG CREDITOR BANKS BOTH ITALIAN AND FOREIGN BUT THE RESTRUCTURING PLAN ISN'T EXPECTED TO BE ANNOUNCED BEFORE THE END OF THE MONTH NOW WE'RE SEEING THEM STRAIGHTEN OUT THE FIGURES SAID ENRICO PONZONE AN ITALIANEQUITIES ANALYST AT KLEINWORT BENSON IN LONDON THEN THE BANK GROUP HEADED BY MEDIOBANCA WILL HAVE TO THINK AND AT THE END OF THE MONTH WE'LL HAVE THEIR PROPOSAL THE BANKS' CHOICES APPEAR LIMITED THEY WILL HAVE TO SELL SOME OF THEIR HOLDINGS SAID ALESSANDRO PACCHIANI OF EUROMOBILIARE SPA A MILAN MERCHANT BANK THEY'D LIKE TO SELL EVERYTHING SAID MR CENCI OF MILLA & CO 9308110009 930811 BUSINESS BRIEFS STEELCASE INC A MAKER OF OFFICE FURNITURE FORMED A NEW UNIT TURNSTONE THAT WILL MARKET EXCLUSIVELY TO SMALL BUSINESSES AND HOME OFFICES DELTA QUEEN STEAMBOAT CO ACQUIRED AMERICAN HAWAII CRUISES FOR 325 MILLION THE TRANSACTION WAS COMPOSED OF 175 MILLION IN CASH AND 15 MILLION IN AN EQUITY NOTE TO CONTRIBUTE FUNDS AS NEEDED FOR WORKING CAPITAL AND CAPITAL EXPENDITURES JAMESWAY CORP SAID A FEDERAL BANKRUPTCY COURT IN MANHATTAN APPROVED 75 MILLION IN DEBTORINPOSSESSION FINANCING FOR THE RETAILER WHICH IS OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROTECTION ITT CORP'S ITT HARTFORD INSURANCE GROUP AGREED TO BUY DORNBERGER/BERRY & CO A SIOUX FALLS SD CROP INSURANCE COMPANY FROM GREAT WEST CASUALTY CO DANIEL INDUSTRIES INC OF HOUSTON RECEIVED A 205 MILLION CONTRACT FROM A/S NORSKE SHELL A UNIT OF ROYAL DUTCH/SHELL GROUP FOR GASFLOW MEASUREMENT SYSTEMS FOR A PROJECT IN NORWAY SPRINT CORP AGREED TO PROVIDE A NATIONWIDE COMMERCIAL PUBLICDATA NETWORK TO A ROMANIAN SUBSIDIDARY OF LOGIC SYSTEMS INTERNATIONAL LTD NEW YORK SHEARSON LEHMAN BROTHERS' GROUP OF 84 MUTUAL FUNDS CHANGED ITS NAME TO THE SMITH BARNEY SHEARSON GROUP OF FUNDS REFLECTING PRIMERICA CORP'S RECENT TAKEOVER OF SHEARSON 9308110008 930811 BUSINESS BRIEF HUNTWAY PARTNERS TO INCREASE CHARGE RELATED TO REFINERY VALENCIA CALIF HUNTWAY PARTNERS LP SAID IT WILL BOOST TO 16 MILLION FROM 66 MILLION A ONETIME CHARGE RELATED TO ITS OIL REFINERY IN COOLIDGE ARIZ THE NEW CHARGE WILL BE REFLECTED IN FINANCIAL RESULTS FOR THE JUNE 30 SECOND QUARTER THAT ALSO WILL INCLUDE 17 MILLION OF COSTS RELATED TO A RECENT RESTRUCTURING OF DEBT AND 150000 FOR SETTLEMENT OF RECENT SECURITIES LITIGATION THE COMPANY SAID BECAUSE OF THE CHARGES HUNTWAY PARTNERS A PRODUCER OF ASPHALT FOR ROAD CONSTRUCTION IS NEGOTIATING WITH LENDERS TO AMEND THE JUNE 23 RESTRUCTURING OF ITS 753 MILLION IN DEBT SAID WARREN NELSON EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HUNTWAY PARTNERS SAID IT MORE THAN DOUBLED THE CHARGE BECAUSE IT DECIDED TO SELL THE SHUTTERED ARIZONA FACILITY OR TO OPERATE THE REFINERY FOR OTHERS THE ADDITIONAL 94 MILLION WILL BE TAKEN TO WRITE THE REFINERY DOWN TO ITS FAIR MARKET VALUE THE COMPANY SAID HUNTWAY PARTNERS SAID IT SETTLED CLASSACTION LITIGATION FILED IN DECEMBER BY A UNITHOLDER WHO ALLEGED THAT THE COMPANY FAILED TO PROPERLY DISCLOSE ITS SUBSTANTIAL FINANCIAL DIFFICULTIES IN ADDITION TO THE COMPANY OUTLAY OF 150000 WHICH IS PAYABLE IN INSTALLMENTS THROUGH DECEMBER 1995 WITH 7 INTEREST INSURERS WILL PAY AN ADDITIONAL 12 MILLION TO PLAINTIFFS THE COMPANY SAID THE EXPECTED SECONDQUARTER LOSS WILL RESULT IN NEGATIVE NET PARTNERSHIP CAPITAL MR NELSON SAID AT MARCH 31 HUNTWAY REPORTED PARTNERS' CAPITAL OF 27 MILLION THE COMPANY OPERATES TWO CALIFORNIA REFINERIES IN ADDITION TO THE ARIZONA FACILITY 9308110007 930811 TECHNOLOGY & HEALTH TANDY CORP REPORTS LOSS OF 773 MILLION FOR SECOND QUARTER FORT WORTH TEXAS TANDY CORP REPORTED A SECONDQUARTER NET LOSS OF 773 MILLION OR 101 A SHARE INCLUDING A LARGERTHANEXPECTED 109 MILLION CHARGE RELATING TO THE SALE OF THE COMPANY'S COMPUTER MANUFACTURING OPERATIONS THE OWNER OF THE RADIO SHACK AND COMPUTER CITY ELECTRONICS CHAINS AMONG OTHERS SAID ITS PROFIT FROM CONTINUING OPERATIONS IN THE QUARTER WAS 317 MILLION OR 38 CENTS A SHARE COMPARED WITH 427 MILLION OR 52 CENTS A YEAR EARLIER YEARAGO NET INCOME WAS 281 MILLION OR 34 CENTS A SHARE THOUGH ANALYSTS HAD BEEN BRACING FOR A CHARGE THE AMOUNT OF THE HIT WAS ABOUT 40 MILLION HIGHER THAN MOST EXPECTED IN ADDITION TANDY'S OPERATING PROFIT WAS SLIGHTLY BELOW MOST ANALYSTS' ESTIMATES SENDING THE STOCK DOWN 1125 TO 28875 IN NEW YORK STOCK EXCHANGE TRADING LATE YESTERDAY IN MAY TANDY ANNOUNCED PLANS TO SELL ITS PERSONAL COMPUTER BUSINESS TO AST RESEARCH INC IRVINE CALIF FOR ABOUT 175 MILLION THE SALE WAS AIMED AT SHARPENING TANDY'S FOCUS ON RETAILING AND SHEDDING A MONEYLOSING BUSINESS MADE EVEN MORE DIFFICULT BY DEEP PRICECUTTING IN PCS ANALYSTS WHO AREN'T EXPECTING ANY MORE MAJOR CHARGES RELATING TO THE AST SALE SAY THEY ARE HEARTENED BY TANDY'S RETAIL PROGRESS DURING THE QUARTER INCLUDING A 14 INCREASE IN SALES AT STORES OPEN MORE THAN A YEAR TOTAL SALES ROSE 5 TO 8431 MILLION FROM 8018 MILLION DURING THE SAME PERIOD A YEAR AGO COMPARABLESTORE SALES AT COMPUTER CITY WERE UP 50 IN THE QUARTER RADIO SHACK'S SAMESTORE SALES ROSE 3 9308110006 930811 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BO TH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9308110005 930811 INSIDE TRACK SALOMON INSIDER GOBBLES UP ITS SHARES BY WARREN GETLER AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TWO YEARS AFTER A MAJOR TREASURYAUCTION SCANDAL RATTLED THE FOUNDATIONS OF SALOMON INC A SENIOR SALOMON INSIDER IS MAKING A BIG BET THAT THE COMPANY IS BACK ON SOLID GROUND DERYCK C MAUGHAN CHAIRMAN OF SALOMON'S SALOMON BROTHERS INC BROKERAGE UNIT SPENT 1 MILLION ON 25000 OF ITS SHARES ON JULY 30 EIGHT DAYS AFTER THE COMPANY REPORTED ITS BEST QUARTERLY EARNINGS EVER HIS BET THUS FAR HAS PAID OFF HANDSOMELY THE STOCK HAS SOARED 13 TO MORE THAN 45 A SHARE IN THE SEVEN TRADING DAYS SINCE MR MAUGHAN'S PURCHASE FETCHING ITS HIGHEST PRICE SINCE AUGUST 1986 BUT SOME WALL STREET ANALYSTS AND MONEY MANAGERS CAUTION THAT THE STOCK ALREADY MAY HAVE REACHED RICH LEVELS AND THAT SALOMON'S QUARTERLY EARNINGS TEND TO ZIGZAG WE'RE NEUTRAL ON THE STOCK THE VOLATILITY OF THE EARNINGS IS STILL VERY HIGH SAYS JAMES P HANBURY A SECURITIES INDUSTRY ANALYST WITH WERTHEIM SCHRODER MR MAUGHAN WHO DECLINED TO COMMENT PAID AN AVERAGE PRICE OF 40 A SHARE ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS SALOMON CLOSED AT 45375 UP 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY MR MAUGHAN'S PURCHASE OF SALOMON STOCK HIS FIRST EVER IN THE OPEN MARKET LIFTED HIS HOLDINGS 20 TO 152508 SHARES ACCORDING TO THE SEC FILINGS TWO YEARS AGO THIS WEEK SALOMON DISCLOSED THAT IT HAD VIOLATED BIDDING RULES IN TREASURY NOTE AUCTIONS HELD IN DECEMBER 1990 AND IN FEBRUARY AND MAY 1991 THE SCANDAL AND THE FEDERAL INVESTIGATION THAT ENSUED COST THE TRADING FIRM PRESTIGE CLIENTS MARKET SHARE AND SEVERAL TOP OFFICIALS NOT TO MENTION PENALTIES AND RESTITUTION TOTALING 290 MILLION SINCE THEN THE COMPANY HAS BEGUN TO RECOVER SOMEWHAT FOR THE FIRST SIX MONTHS OF 1993 SALOMON'S SHARE OF THE EQUITY UNDERWRITING MARKET ADVANCED TO 46 FROM 22 A YEAR EARLIER THOUGH IT STILL LAGS BEHIND THE COMPANY'S 78 MARKET SHARE JUST BEFORE THE SCANDAL SECONDQUARTER EARNINGS OF 433 MILLION OR 375 A SHARE WERE WELL ABOVE ANALYSTS' EXPECTATIONS THOSE STRONG EARNINGS SEEM TO BE FUELING THE SHARP SURGE IN SALOMON STOCK BUT ANALYSTS NOTE THEY CAME ON THE HEELS OF HUGELY DISAPPOINTING FIRSTQUARTER RESULTS ILLUSTRATING THE VOLATILITY OF THE COMPANY'S PROPRIETARY TRADING OPERATIONS WHERE IT USES ITS OWN MONEY MOREOVER SALOMON RECENTLY ANNOUNCED THAT ITS HEAD OF BOND ARBITRAGE POWERHOUSE TRADER LAWRENCE HILIBRAND IS LEAVING THE FIRM AT YEAR END LAST WEEK THE COMPANY NAMED AS HIS SUCCESSOR DENNIS J KEEGAN COCHIEF EXECUTIVE OFFICER OF SALOMON'S EUROPEAN OPERATIONS AND ONE OF THE FIRM'S TOP BONDARBITRAGE TRADERS SOME ANALYSTS AND MONEY MANAGERS ARE CONVINCED HOWEVER THAT INVESTORS SHOULD FOLLOW MR MAUGHAN'S LEAD AND JUMP IN EVEN AT PRICES ABOVE 45 THEY EXPECT EARNINGS TO CONTINUE TO IMPROVE AND THEY APPLAUD THE COMPANY'S RECENT DECISION TO START REPORTING EARNINGS IN A MORE TRANSPARENT FASHION SALOMON NOW BREAKS OUT SEPARATE RESULTS FOR ITS CLIENT AND PROPRIETARYTRADING BUSINESSES I DON'T THINK WE'VE SEEN PEAK EARNINGS AT SALOMON INC FOR THIS CYCLE SAYS MICHAEL FLANAGAN A SECURITIES INDUSTRY ANALYST WITH LIPPER ANALYTICAL SERVICES THE UNDERWRITING ENVIRONMENT CONTINUES STRONG AND SALOMON IS PICKING UP POSITION IN UNDERWRITING SALOMON HAS OTHER FANS AMONG ANALYSTS THE STOCK HAS A LOT MORE STEAM SAYS FRANK CASTLE A PORTFOLIO MANAGER FOR FEELEY & WILCOX A NEW YORK INVESTMENT COMPANY THERE'S A LOT OF VALUE HERE AT 95 TIMES WHAT HE ESTIMATES WILL BE SALOMON'S 1993 EARNINGS OF 475 A SHARE HE SAYS SALOMON STOCK IS DIRT CHEAP THE WALL STREET CONSENSUS ESTIMATE FOR 1993 EARNINGS IS 483 A SHARE ACCORDING TO FIRST CALL WHICH TRACKS ANALYSTS' RECOMMENDATIONS NOTING THAT THE COMPANY APPEARS TO BE UNDERGOING A MARKED IMPROVEMENT IN TERMS OF VOLUME AND RETURN ON CAPITAL IN ITS CLIENTBASED BUSINESS MR CASTLE SAYS SALOMON IS BOLSTERING INVESTOR CONFIDENCE BY PUTTING LESS CAPITAL AT RISK IN PROPRIETARY TRADING BUSINESS PROPRIETARY TRADING HAS GENERATED VOLATILE SWINGS IN QUARTERLY EARNINGS AT THE SECURITIES TRADING FIRM HENCE MR CASTLE SAYS BY LIMITING THE AMOUNT OF CAPITAL DEVOTED TO THE BUSINESS SALOMON WILL DIMINISH AND ELIMINATE SOME OF THE LOSSES IT'S EXPERIENCED IN HIGHRISK PROPRIETARY TRADING ALTHOUGH MR MAUGHAN'S STOCK PURCHASE WAS HEFTY HE CAN WELL AFFORD IT IN 1992 HE RECEIVED 4 MILLION IN SALARY BONUS AND RESTRICTED STOCK ACCORDING TO A PROXY STATEMENT FILED BY PARENT SALOMON INC PLUS 41 MILLION IN DEFERREDBONUS PAYMENTS FROM PRIOR YEARS HE RECEIVED AN ADDITIONAL 283854 FOR A TEMPORARY RESIDENCE AND OTHER RELATED EXPENSES CONNECTED WITH HIS RELOCATION TO NEW YORK FROM JAPAN THE PROXY STATEMENT SAYS MR MAUGHAN'S PURCHASE WAS OFFSET SOMEWHAT BY OPTIONRELATED SALES BY TWO SENIOR SALOMON INC MANAGING DIRECTORS GEDALE B HOROWITZ AND JAMES L MASSEY MR HOROWITZ SAID HE SOLD MORE THAN 60000 SHARES LATE LAST MONTH AT PRICES NEAR 40 A SHARE IMMEDIATELY AFTER EXERCISING OPTIONS ON THOSE SHARES THAT WERE SET TO EXPIRE NEXT YEAR NOTING THAT HE HAD ONLY FOUR ADDITIONAL 10DAY EXERCISE PERIODS HE SAID THE SALE WAS PRUDENT AND HAD NOTHING TO DO WITH HIS VIEW OF THE COMPANY'S PROSPECTS MR MASSEY WHO SOLD 129600 SHARES ALSO AT PRICES NEAR 40 A SHARE SOON AFTER EXERCISING OPTIONS COULDN'T BE REACHED FOR COMMENT EXPERTS WHO FOLLOW INSIDER TRADING FOR CLUES TO A STOCK'S OUTLOOK GENERALLY DISMISS OPTIONRELATED SALES ON THE THEORY THAT EXECUTIVES ARE TREATING THE STOCK AS COMPENSATION AND AREN'T MAKING A MARKETTIMED DECISION ON THE VALUE OF THE SHARES 9308110004 930811 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN AIRLINES DIDN'T TRY TO PUT TWO FINANCIALLY WEAKER CARRIERS OUT OF BUSINESS WHEN IT SLASHED FARES LAST SPRING A JURY FOUND THE DECISION SIGNALS THAT COMPANIES CAN CONTINUE TO PRICE THEIR PRODUCTS AGGRESSIVELY WITHOUT RUNNING AFOUL OF PREDATORY PRICING LAWS NORTHWEST AND CONTINENTAL CLAIMED THE AMR UNIT TRIED TO FORCE THEM TO INCUR HEAVY LOSSES WHEN IT INTRODUCED A NEW FARE STRUCTURE THAT CUT COACH FARES AS MUCH AS 50 GENERAL MOTORS' SATURN SUBSIDIARY IS RECALLING ALL OF THE 352767 VEHICLES IT BUILT PRIOR TO APRIL 15 TO FIX A DEFECT CONNECTED TO 34 CAR FIRES THE RECALL COULD TARNISH SATURN'S HARDWON REPUTATION FOR SUPERIOR QUALITY LONGTERM INTEREST RATES FELL TO ANOTHER 16YEAR LOW AS BOND PRICES ROSE THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED OVER 1/4 POINT WHILE ITS YIELD FELL TO 644 LABOR PRODUCTIVITY IN THE US FELL IN THE SECOND QUARTER MARKING THE SECOND CONSECUTIVE THREEMONTH DROP AND RAISING DOUBTS ABOUT WHETHER IMPRESSIVE GAINS MADE LAST YEAR REALLY SIGNALED A LONGTERM TREND RJR NABISCO'S JOE CAMEL CIGARETTE AD CAMPAIGN SHOULD BE BANNED BECAUSE IT ENTICES MINORS TO SMOKE AN FTC STAFF RECOMMENDATION SAID FTC COMMISSIONERS ARE EXPECTED TO RULE ON THE RECOMMENDATION WITHIN 30 DAYS THE CLINTON ADMINISTRATION SAID IT HAS DECIDED TO BEGIN CHALLENGING PRICEFIXING ARRANGEMENTS BETWEEN MANUFACTURERS AND THEIR DISTRIBUTORS ITALY'S FERRUZZI PLANS TO WRITE DOWN ITS SHARE CAPITAL BY 85 AND SAID THAT LOSSES IN THE FIRST FIVE MONTHS WERE 722 MILLION MORE THAN TWICE AS MUCH AS REPORTED SIX WEEKS AGO P&G POSTED A 122 BILLION LOSS FOR ITS FOURTH QUARTER AFTER TAKING A 156 BILLION CHARGE FOR A RESTRUCTURING PROGRAM INTENDED TO HELP IT BATTLE PRIVATELABEL RIVALS AND LOWERPRICED BRANDS WALMART'S PROFIT CLIMBED 18 IN THE SECOND QUARTER WHILE PROFITS ROSE 76 AT DILLARD AND 24 AT NORDSTROM BUT LIMITED'S EARNINGS FELL 15 IN THE QUARTER AND ANNTAYLOR STORES POSTED A LOSS DUE TO REFINANCING COSTS AGRICULTURE OFFICIALS ARE EXPECTED TO LOWER HARVEST FORECASTS TODAY TO REFLECT ROUGHLY 6 BILLION OF CROP DAMAGE CAUSED BY RAIN AND FLOODS IN THE MIDWEST AND DROUGHT IN THE SOUTH PEPSICO SAID IT PLANS TO INVEST 500 MILLION IN POLAND SIGNALING THAT THE COUNTRY WILL BECOME A MAJOR BATTLEGROUND AS THE COMPANY FIGHTS COCACOLA'S DRIVE INTO EASTERN EUROPE THE FDIC SAID THE BANK DEPOSIT INSURANCE FUND SOARED TO 68 BILLION IN THE FIRST SIX MONTHS OF 1993 BUT THE BANKING INDUSTRY SAYS THE FUND IS EVEN HEALTHIER THAN THE AGENCY CLAIMS JAPAN'S NEW PRIME MINISTER SAID CUTTING JAPAN'S TRADE SURPLUS IS ONE OF HIS PRIORITIES BUT HE REJECTED SOME US SUGGESTIONS ON HOW TO DO IT WHILE HE CALLED NUMERICAL TARGETS INAPPROPRIATE HE SAID THE GOVERNMENT WILL IMPROVE ACCESS TO THE JAPANESE MARKET BRITISH AIRWAYS' PROFIT SLID 31 IN ITS FIRST QUARTER BUT THE COMPANY'S STOCK JUMPED 4 IN LONDON AFTER IT SAID COSTS IN THIS QUARTER ARE EXPECTED TO REMAIN AT LAST YEAR'S LEVELS BRITAIN CUT THE PRICES IT WILL PAY BRITISH COMPANIES FOR DRUGS 25 THE LATEST MOVE IN A PHARMACEUTICAL PRICING CRACKDOWN ACROSS EUROPE GERMANY WARNED THAT A 1993 ECONOMIC RECOVERY WAS UNCERTAIN AND THAT UNEMPLOYMENT LEVELS COULD SWELL TO FOUR MILLION BY NEXT YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 542745 UP 813 COMMODITIES OIL 1752 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12755 OFF 056 SPOT INDEX 12468 OFF 008 DOLLAR 10470 YEN OFF 019 17170 MARKS UP 00195 9308110003 930811 MARKETING & MEDIA COORS TO TEST MARKET LOWERPRICED BEER IN KANSAS OKLAHOMA GOLDEN COLO HOPING TO GAIN A LARGER SHARE OF THE MARKET FOR LOWERPRICED BEERS COORS BREWING CO A UNIT OF ADOLPH COORS CO SAID IT WILL TEST MARKET A NEW VALUEADDED BRAND IN KANSAS AND OKLAHOMA IN OCTOBER TO BE PRICED BELOW COORS'S KEYSTONE BRAND THE BREWER SAID SHULERS LAGER AND SHULERS LIGHT WOULD BE TARGETED PRIMARILY AT MEN AGES 35 TO 49 WITH BLUECOLLAR BACKGROUNDS AND ANNUAL HOUSEHOLD INCOMES OF 10000 TO 25000 IN ADDITION TO EXPANDING COORS'S PRODUCT LINE THE TEST WILL ALLOW THE COMPANY TO CAPITALIZE ON THE OPPORTUNITY TO GAIN OUR SHARE OF BUSINESS IN THIS HIGHVOLUME SEGMENT SAID PAUL LEROUE COORS BRAND DEVELOPMENT MANAGER HE SAID THE VALUEADDED SEGMENT IS THE INDUSTRY'S SECOND LARGEST DOLLARVOLUME CATEGORY AFTER PREMIUM BEERS AND ACCOUNTS FOR ABOUT 24 OF ALL BEER SOLD IN THE TWO TESTMARKET STATES INDUSTRY ANALYSTS SAID SHULERS WOULD COMPLETE WITH SUCH BRANDS AS MILWAUKEE'S BEST BREWED BY PHILIP MORRIS COS' MILLER BREWING CO UNIT AND NATURAL LIGHT BREWED BY ANHEUSERBUSCH COS WHICH HAVE BEEN SELLING WELL ESPECIALLY IN ECONOMICALLY TROUBLED MARKETS THERE'S JUST A LOT OF ACTIVITY GOING ON IN THAT LOWPRICED SEGMENT RIGHT NOW SAID BENJ STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS A TRADE PUBLICATION BUT WHILE A LOWERPRICED BRAND MIGHT HELP COORS MARKETING EFFORTS IN SOME MARKETS SOME ANALYSTS QUESTIONED WHETHER IT WILL BOOST EARNINGS GIVEN THE THINNER PROFIT MARGINS INVOLVED WITH SUCH PRODUCTS IN TERMS OF IMPACTING THE BOTTOM LINE ITS PROBABLY NOT GOING TO HAVE ANY IMPACT SAID GEORGE THOMPSON AN ANALYST WITH PRUDENTIAL SECURITIES 9308110001 930811 P&G REPORTS FISCAL FOURTHPERIOD LOSS OF 122 BILLION AFTER TAKING A CHARGE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO SWUNG TO A 122 BILLION LOSS IN ITS FISCAL FOURTH QUARTER AFTER TAKING A 156 BILLION CHARGE FOR A RESTRUCTURING TO HELP BATTLE PRIVATELABEL RIVALS AND LOWERPRICED BRANDS THE CONSUMERPRODUCTS COMPANY'S LOSS FOR THE QUARTER ENDED JUNE 30 AMOUNTED TO 183 A SHARE COMPARED WITH NET INCOME OF 339 MILLION OR 46 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER FIGURE INCLUDED A GAIN OF 61 MILLION OR NINE CENTS A SHARE FROM THE SALE OF THE COMPANY'S COFFEE BUSINESS IN ITALY THE RESTRUCTURING CHARGE WAS ANNOUNCED BY THE CINCINNATI COMPANY IN JULY ALONG WITH PLANS TO CUT 13000 JOBS AND CLOSE 30 PLANTS EVEN THOUGH THE CHARGE'S SIZE HAD BEEN KNOWN P&G'S SHARES SLIPPED YESTERDAY AS SOME INVESTORS EXPRESSED DISAPPOINTMENT WITH THE COMPANY'S OPERATING EARNINGS BEFORE TAXES AND THE CHARGE EARNINGS WERE 452 MILLION IN THE QUARTER UP 92 FROM 414 MILLION A YEAR EARLIER SOME ANALYSTS HAD EXPECTED A DOUBLEDIGIT OPERATING EARNINGS INCREASE AT GOLDMAN SACHS ANALYST JACK L SALZMAN DOWNGRADED P&G STOCK TO MARKET PERFORMER FROM TRADING BUY P&G SAID FOURTHQUARTER RESULTS WERE HELPED BY A LOWER TAX RATE OF 284 COMPARED WITH 318 IN THE YEARAGO PERIOD P&G'S TAX RATE ALSO WAS LOWER FOR THE YEAR 331 COMPARED WITH 351 A YEAR AGO IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY P&G COMMON CLOSED AT 4625 DOWN 1125 SALES WERE 737 BILLION IN THE QUARTER UP 28 FROM 717 BILLION IN THE YEARAGO PERIOD FOR THE FISCAL YEAR THE COMPANY POSTED A LOSS OF 656 MILLION OR 111 A SHARE REFLECTING THE FOURTHQUARTER CHARGE AS WELL AS A 1 BILLION RESERVE FOR ACCOUNTING CHANGES AND A 200 MILLION AFTERTAX RESTRUCTURING RESERVE FOR THE DIVESTITURE IN SEPTEMBER OF THE COMPANY'S JUICE BUSINESS THAT COMPARES WITH THE PREVIOUS YEAR'S NET INCOME OF 187 BILLION OR 262 A SHARE SALES IN THE JUSTENDED FISCAL YEAR WERE 3043 BILLION UP 36 FROM 2936 BILLION A YEAR AGO P&G EMPHASIZED THAT YEAREND RESULTS REFLECTED RECORD OPERATING EARNINGS OF 208 BILLION THE COMPANY SAID THE CHARGES WON'T AFFECT DIVIDEND PAYMENTS THIS WAS BOTH OUR BEST YEAR EVER AND ONE OF OUR TOUGHEST SAID EDWIN L ARTZT CHAIRMAN AND CHIEF EXECUTIVE OFFICER HOWEVER THE DECLINE IN P&G'S STOCK PRICE REFLECTED A WIDESPREAD BELIEF ON WALL STREET THAT CONSUMER PRODUCTS AND FOOD COMPANIES CAN EXPECT CONTINUED CHALLENGES FROM LOWERPRICED BRANDS AND INEXPENSIVE PRIVATELABEL IMITATIONS THAT APPEAL TO PENNYPINCHING SHOPPERS WE'RE SEEING A REFLECTION OF A VERY TOUGH OPERATING ENVIRONMENT SAID LYNNE HYMAN AN ANALYST WITH FIRST BOSTON P&G'S SPENDING VERY HEAVILY TO MAINTAIN THE GROWTH OF THE BUSINESS THEY'RE MAKING THEIR EARNINGSPERSHARE TARGETS BUT THEY'RE NOT COMING THROUGH WITH OPERATING RESULTS TO BE SURE MANY P&G PRODUCTS INCLUDING TOILET TISSUE BAR SOAP LAUNDRY DETERGENTS HEAVYDUTY CLEANERS AND SHAMPOOS SAW MARKETSHARE IMPROVEMENTS IN THE FOURTH QUARTER UNLESS YOU'RE IN DENIAL IT WAS AN EXTREMELY GOOD QUARTER SAID ANDREW SHORE AN ANALYST WITH PAINEWEBBER MARKET SHARES ARE UP ALMOST EVERYWHERE EXCEPT DISPOSABLE DIAPERS THOUGH THEY'RE IMPROVING BECAUSE OF PRICE CUTS P&G CUT PAMPERS AND LUVS PRICES THREE TIMES IN THE PAST 12 MONTHS MOST RECENTLY IN MAY WHILE DIAPER SALES MEASURED IN UNITS WERE DOWN 3 IN THE FOURTH QUARTER COMPARED WITH LAST YEAR THAT'S MUCH BETTER THAN THE FIRST NINE MONTHS OF THE YEAR SAID DEEPAK D RAJ AN ANALYST WITH MERRILL LYNCH FOR THE FULL YEAR DIAPER UNIT SALES WERE DOWN 12 9308110141 930706 BELFAST DISCIPLINE RISE IN KNEECAPPINGS SHOWS A DIRTY SECRET OF LONG CIVIL STRIFE IRA'S OLD TORTURE BECOMES MUCH USED BY BOTH SIDES PROVOKING CITIZEN ANGER SHOOTINGS BY APPOINTMENT BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL BELFAST NORTHERN IRELAND THE KNEECAPPERS CAUGHT UP WITH EDDIE KANE OUTSIDE A BUTCHER SHOP IN A CATHOLIC/PROTESTANT WAR ZONE KNOWN AS MURDER MILE TOSSING A HOOD OVER HIS HEAD TWO MASKED MEN GRILLED MR KANE ABOUT AN ASSAULT ON ONE OF THEIR MATES THEN THEY FORCED HIM TO LIE FACE DOWN AND PRESSED A GUN TO THE BACK OF HIS LEG WHEN I FELT THE SECOND BULLET I THOUGHT OH NO THEY'RE GIVING ME A SIXPACK' MR KANE SAYS A SIXPACK IS SLANG FOR BEING SHOT IN BOTH KNEES ELBOWS AND ANKLES BUT THE MEN ONLY FIRED FOUR TIMES WOUNDING MR KANE'S KNEES AND ELBOWS ONE SHOT CHEWED THE LEFT ELBOW INTO WHAT HIS DOCTOR CALLS A BONE BURGER ANOTHER SMASHED HIS LEFT KNEECAP SUCH VIOLENCE ISN'T NEW TO THE 27YEAROLD CATHOLIC WHO HAS RIP DAD TATTOOED ON ONE ARM AND RIP BILLY HIS BROTHER ETCHED ON THE OTHER PROTESTANTS KILLED BOTH MEN BUT MR KANE'S ASSAILANTS WERE CATHOLICS FROM THE IRISH REPUBLICAN ARMY MY FAMILY'S BEEN THROUGH ENOUGH FROM THE PRODS HE SAYS WITHOUT GETTING IT FROM OUR OWN SIDE TOO THE MAIMING OF MR KANE REFLECTS ONE OF THE DIRTY SECRETS OF THIS LONG DIRTY CONFLICT PROTESTANTS AND CATHOLICS NOW TARGET THEIR OWN ALMOST AS OFTEN AS THEY TARGET EACH OTHER OR THE POLICE IN FACT BOTH COMMUNITIES HAVE LONG ACCEPTED SUCH VIGILANTISM KNOWN AS KNEECAPPING AS A BRAKE ON CRIME THE PUNISHMENT IS SO ROUTINE THAT IT HAS MADE BELFAST SURGEONS RENOWNED FOR THEIR SKILL AT MENDING THE CONDEMNED BUT AS THE NUMBER AND SAVAGERY OF KNEECAPPINGS HAVE SOARED IN RECENT YEARS VICTIMS' FAMILIES HAVE STARTED TO SPEAK OUT THIS RARE DISSENT FROM BOTH SIDES EXPOSES HOW HABITUAL AND THUGGISH THE VIOLENCE HERE HAS BECOME WHILE CIVIL STRIFE ELSEWHERE COMMANDS THE HEADLINES BLOODSHED IN NORTHERN IRELAND PERSISTS IN WAYS THAT SHOW WHERE OTHER CONFLICTS MAY BE HEADED IN THE MEAN STREETS OF BELFAST GIVING YOUNG MEN GUNS AND THE LICENSE TO USE THEM AS IN BOSNIA AND SOMALIA HAS MUTATED POLITICAL PASSIONS OFTEN REDUCING THIS STRUGGLE TO A CYNICAL WAR BETWEEN WELLARMED URBAN GANGS ALL THE BIG TALK ABOUT FREEDOM AND JUSTICE IT'S LIES SAYS BRIDGET MOSS MR KANE'S MOTHER WEEPING QUIETLY IN THE CRAMPED ROWHOUSE WHERE SHE FEEDS AND BATHES HER HOBBLED SON A LIFELONG IRA SUPPORTER SHE NOW HAS DISOWNED THE GROUP AND ASSEMBLED EVIDENCE THAT HER SON WAS SHOT FOR A CRIME HE DIDN'T COMMIT I THOUGHT KNEECAPPING WAS JUST A WEE HOLE IN THE LEG SHE SAYS BUT WHAT THEY DONE TO EDDIE IT'S INHUMAN WHILE NO LONGER WHEELCHAIRBOUND MR KANE WILL NEVER REGAIN USE OF HIS ELBOW AND IS AT RISK OF EARLY ARTHRITIS IN BOTH ARMS AND LEGS KNEECAPPING IN NORTHERN IRELAND DATES BACK AT LEAST TO THE BEGINNINGS OF THE CIVIL STRIFE KNOWN HERE AS THE TROUBLES IN 1969 AT FIRST AN IRA PUNISHMENT FOR INFORMERS KNEECAPPING HAS COME TO COVER A RANGE OF ALLEGED CRIMES AND IT NOW IS MORE COMMON AMONG PROTESTANTS THAN CATHOLICS THERE WERE 133 PEOPLE KNEECAPPED LAST YEAR ALMOST DOUBLE THE 1991 TOLL THIS COMPARES WITH 189 KILLED OR WOUNDED IN ALL OTHER SHOOTING INCIDENTS IN NORTHERN IRELAND LAST YEAR THERE IS A CIRCULAR ARGUMENT USED TO JUSTIFY KNEECAPPING IT GOES AS FOLLOWS THE TROUBLES HAVE CAUSED CITIZENS CATHOLICS IN PARTICULAR TO CONSIDER THE POLICE AS FOES INDEED BECAUSE PARAMILITARY GROUPS OFTEN AMBUSH POLICE LAWENFORCEMENT GROUPS DO HAVE TROUBLE COMBATING ORDINARY CRIME SO IF SOMEONE STEALS YOUR CAR DON'T CALL THE PEELERS AND RISK BEING BRANDED AN INFORMER OR TOUT CALL THE PROVOS THE IRA OR IF YOU ARE A PROTESTANT CALL LOYALIST GROUPS SUCH AS THE ULSTER FREEDOM FIGHTERS WHO WILL TAKE ACTION KNEECAPPING IS BRUTAL BUT WHAT ARE YOU SUPPOSED TO DO ASKS MAUREEN MAGUIRE A CATHOLIC MOTHER OF TWO SONS AGED SEVEN AND EIGHT LIKE MANY OF HER NEIGHBORS SHE SAYS HOODS ARE RUNNING AMOK AND POLICE WON'T OR CAN'T COME GET THEM JOYRIDERS HAVE TWICE CRASHED THROUGH HER BACK FENCE AND SHE FEARS FOR THE SAFETY OF HER BOYS PEOPLE NEED SOMEONE TO TURN TO MRS MAGUIRE SAYS WOULD SHE ACCEPT THE KNEECAPPING OF HER OWN SONS IF THEY BECAME JOYRIDERS IF IT WOULD WISE THEM UP YES I'D BE FOR IT SHE SAYS QUIETLY KNEECAPPING HAS THUS ASSUMED THE AURA OF A SHADOW LEGAL SYSTEM PEOPLE CALL IT ROUGH JUSTICE METED OUT BY GUNMEN KNOWN AS CIRCUIT JUDGES WHO SOMETIMES HOLD KANGAROO COURTS DEFENDANTS ARE FOUND GUILTY OF ANTISOCIAL BEHAVIOR SENTENCES ARE TAILORED TO THE MISDEED MINOR MISCREANTS POTSMOKERS SAY WILL BE WARNED ON SECOND OFFENSE THEY WILL BE BEATEN OR SHOT THROUGH THE CALF OR THIGH MORE SERIOUS OFFENDERS GET A BULLET THROUGH THE KNEE IF THEY DON'T REFORM THEY ARE SHOT AGAIN THROUGH SEVERAL LIMBS MANY VICTIMS ARE SHOT BY APPOINTMENT AT A SET TIME AND PLACE SO OFTEN IS ONE FAVORED VENUE USED THAT IT HAS BEEN DUBBED KNEECAP ALLEY THE VICTIMS WHO ARE USUALLY YOUTHS TYPICALLY PREPARE FOR THEIR ORDEAL BY DOWNING AS MUCH BEER AS THEY CAN SINCE THE INTENT IS TO WOUND RATHER THAN KILL ASSAILANTS QUICKLY SUMMON AMBULANCES SOMETIMES TOO QUICKLY ONE DRIVER RECALLS BEING MET BY A HOODED GUNMAN WHO SAID HOLD ON THERE'S SIX LADS AND WE'VE ONLY DONE FOUR THE DRIVER WAITED UNTIL THE OTHER TWO WERE SHOT MOST KNEECAPPINGS OCCUR SOON AFTER DINNER PROMPTING NURSES TO REPEAT A GRUESOME RHYME AT EIGHT O'CLOCK THERE'LL BE ONE SHOT PARAMEDICS KNOW TO EXPECT POWDER BURNS DUE TO THE POINTBLANK RANGE AND ARE CAREFUL WITH ANESTHESIA WHICH MIXES DANGEROUSLY WITH ALCOHOL IT IS THE CALM OF THEIR PATIENTS THAT MEDICAL STAFFS FIND MOST STRIKING UNLIKE OTHER VICTIMS OF PHYSICAL TRAUMA THEY HAVE PREPARED EVEN PLANNED FOR THEIR WOUNDS ONE DOCTOR TELLS OF TWO TEENAGERS WHO WERE CARRIED TO THE EMERGENCY ROOM IN THEIR UNDERWEAR BLUE JEANS TUCKED UNDER THEIR ARMS THEY HAD REMOVED THEIR PANTS BEFORE BEING SHOT SO AS NOT TO RUIN NEW DENIMS THESE YOUTHS HAVE A REASONABLE APPRAISAL OF WHAT'S GOING TO HAPPEN TO THEM AND THERE'S A SENSE OF RELEASE WHEN THE PUNISHMENT FINALLY OCCURS SAYS DR GERRY LOUGHREY A PSYCHIATRIST BELFAST DOCTORS HAVE DEVELOPED A GRIM EXPERTISE TREATING THIS CARNAGE KNEECAPPING IS ACTUALLY A MISNOMER AS THE KNEECAP IS RARELY HIT THE WORST WOUNDS INVOLVE BLOOD VESSELS OR BONES AND BLOOD VESSELS TOGETHER BUT BY GETTING VICTIMS TO HOSPITAL QUICKLY AND SWIFTLY RESTORING BLOOD FLOW THROUGH THE USE OF SURGICAL SHUNTS BELFAST SURGEONS NOW AMPUTATE IN FEWER THAN 5 OF SUCH CASES AS RECENTLY AS THE VIETNAM WAR ABOUT 30 OF SIMILAR WOUNDS RESULTED IN LOST LIMBS ORTHOPEDIC ADVANCES ALSO ALLOW YOUTHS WHO ONCE WOULD HAVE BEEN CRIPPLED TO QUICKLY WALK AGAIN ALBEIT USUALLY WITH A LIMP AND IMPAIRED USE OF THE LIMB THERE ARE SIGNS THOUGH THAT BELFAST'S ROUGH JUSTICE IS GETTING ROUGHER AND INCREASINGLY UNJUST HIGHPOWERED AUTOMATIC PISTOLS ARE PRODUCING GHASTLIER WOUNDS SOME GUNMEN APPEAR TO BE TARGETING THE POPLITEAL ARTERY AT THE BACK OF THE KNEE RAISING THE RISK OF SHOCK GANGRENE AMPUTATIONS OR DEATH AS WAS THE CASE WITH ONE MAN THIS YEAR OUTSPOKEN VICTIMS ALSO ARE PUNCTURING THE NOTION THAT GUNMEN SIMPLY FILL A VACUUM LEFT BY POLICE CRIMES NOW DEEMED TO MERIT KNEECAPPING INCLUDE FAILURE TO PAY DUES TO PARAMILITARY GROUPS WHILE POLICE IN BELFAST ARE INDEED HAMPERED BY PUBLIC DISTRUST BY THEIR FEAR OF BOOBY TRAPS AND BY THE NEED TO PATROL INSIDE ARMORPLATED JEEPS CONSTABLES HARDLY OVERLOOK COMMON CRIME MOST OF THOSE KNEECAPPED AREN'T UNDETECTED CRIMINALS THEY ARE LAWBREAKERS AWAITING TRIAL ALL THIS MORAL INDIGNATION ABOUT JOYRIDING AND DRUGS IS NONSENSE SAYS JEFF MAXWELL COORDINATOR OF FAMILIES AGAINST INTIMIDATION AND TERROR FAIT A GROUP THAT DOCUMENTS AND PUBLICIZES KNEECAPPINGS THE REAL ISSUE ISN'T CRIME IT'S SOCIAL CONTROL AND THE SAFETY OF PARAMILITARIES INDEED MANY JOYRIDERS SAY THEY WERE TAUGHT TO STEAL CARS BY GUNMEN NEEDING THE VEHICLES FOR BOMBINGS BUT NOW JOYRIDERS OFTEN COMMIT CRIMES FOR THEIR OWN PLEASURE A FREELANCING THAT MOCKS THE PARAMILITARY'S PRIMACY IN BELFAST AND DRAWS POLICE INTO AREAS WHERE ARMS MAY BE HIDDEN INTERVIEWS WITH EIGHT KNEECAPPED YOUTHS ALSO POINT TO AN EMERGING SUBCULTURE OF ALIENATION IN WHICH FREELANCING HOODS ARE PITTED AGAINST CATHOLIC AND PROTESTANT GUNMEN IN GANG WARFARE THAT HAS LITTLE OR NOTHING TO DO WITH RELIGION OR POLITICS IN MY CROWD IT WAS EITHER CRIME OR PARAMILITARY GROUPS I CHOSE CRIME SAYS ROBERT HUTCHISON A 19YEAROLD PROTESTANT WHO HAS BEEN BADLY BEATEN SEVERAL TIMES MR HUTCHISON AND OTHERS SAY THEY GET A BUZZ FROM BUCKING AUTHORITY WHETHER IT IS POLICE OR PARAMILITARIES THEY BOTH THINK THEY'RE GOD TELLING YOU WHAT TO DO SAYS IAN SANLON A KNEECAPPED JOYRIDER IN THIS ODDLY INTIMATE DANCE KNEECAPPERS AND THEIR VICTIMS OFTEN ARE FORMER SCHOOL OR DRINKING MATES AT THE HEART OF BELFAST'S BLEAKEST DISTRICTS WHERE YOUTHS QUIT SCHOOL AT THE EARLIEST CHANCE AND WHERE UNEMPLOYMENT EXCEEDS 50 REBELLION IS INFUSED WITH A GRIM AIR OF DESPERATION AND DOOM VICTIMS HAVE BEEN KNOWN TO RESUME JOYRIDING WHILE STILL ON CRUTCHES FROM KNEECAPPING IN THESE CIRCLES KNEECAPPING ISN'T A DETERRENT IT IS A RED BADGE OF COURAGE WE PULL OUR TROUSERS DOWN AND SEE WHO'S GOT THE BIGGEST SCARS SAYS A CATHOLIC NAMED TOM WHO HAS BEEN KNEECAPPED TWICE ONCE FOR JOYRIDING ONCE FOR BEATING UP THE MAN WHO SHOT HIM THE IRA TOLD TOM RECENTLY THAT HE MUST LEAVE BELFAST OR RISK A 5050 A GUNSHOT IN THE SPINE REPUTED TO LEAVE VICTIMS EITHER PARALYZED OR DEAD TOM HAS DEFIED THE EXILE ORDER HIDING INSTEAD BUT HE KNOWS THE IRA EVENTUALLY WILL FIND HIM AND DELIVER THE 5050 AT LEAST THAT WILL BE THE END OF MY TORTURE HE SAYS SWEATY AND TREMBLING DESPITE HIS BRAVADO BUT INTIMIDATION DOESN'T END WITH KNEECAPPING IN A CITY WHERE EXTORTION IS ROUTINE VICTIMS WHOSE WOUNDS QUALIFY THEM FOR STATE COMPENSATION OFTEN FIND IN A FINAL IRONY THAT THEY ARE COMPELLED TO SHARE THESE PUBLIC PAYMENTS WITH GUNMEN IN AN EFFORT TO HALT THIS GRIM CYCLE GROUPS SUCH AS FAIT WHICH WAS STARTED BY THE MOTHER OF A KNEECAPPING VICTIM HAVE BEGUN ARRANGING REFUGE OUTSIDE BELFAST IN ENGLAND IN IRELAND EVEN IN MONASTERIES A GROWING NUMBER OF VICTIMS NOW CHOOSE ANOTHER HAVEN PUBLICITY DAMIEN MCCARTAN A CATHOLIC CABBY WAS KNEECAPPED THE DAY BEFORE HIS 21ST BIRTHDAY FOR REFUSING TO HAND HIS KEYS TO THE IRA WHICH WANTED HIS TAXI FOR A TERRORIST ATTACK HE AND HIS FAMILY HAVE PUBLICLY CONDEMNED THE IRA'S ACTION AND AMNESTY INTERNATIONAL HAS LAUNCHED A LETTERWRITING CAMPAIGN ON HIS BEHALF SUCH PUBLIC SHAMING HAS FORCED PARAMILITARIES TO LIFT SEVERAL DEATH THREATS OR TO ISSUE AWKWARD DEFENSES OF THEIR ACTIONS AND THERE ARE SMALL SIGNS OF GROWING PUBLIC DISMAY OVER KNEECAPPING PEOPLE FEEL THE PROTECTORS ARE REALLY JUST VICTIMIZING THEIR OWN WITHOUT A FAIR HEARING SAYS JACK MCKEE A PROTESTANT PASTOR IN A RECENT NEWSPAPER POLL IN A HARDLINE PROTESTANT AREA READERS LISTED PARAMILITARIES AS ONE OF THE BIGGEST BLIGHTS ON THEIR COMMUNITY EVEN MORE STRIKING WAS THE RESPONSE WHEN THE IRA BURST INTO A CATHOLIC CLUB IN MAY TO CARRY OUT A KNEECAPPING THE CROWD HURLED BOTTLES AND INSULTS AT THE GUNMEN FORCING THEM TO FIRE SHOTS IN THE AIR BEFORE RETREATING LET'S JUST SAY IT'S NOT THE DONE THING TO TREAT THE IRA THAT WAY SAYS ONE STUNNED WITNESS SUCH OPEN DEFIANCE THOUGH ONLY GOES SO FAR THE CABBY MR MCCARTAN LIKE MANY OTHER VICTIMS SAYS THE MAN WHO SHOT HIM WAS A CLOSE ACQUAINTANCE BUT HE WOULD NEVER REVEAL THE MAN'S NAME TO POLICE SEATED BEHIND A WALL OF EMPTY BEER BOTTLES AT A PARTY IN HIS HONOR MR MCCARTAN EXPLAINS WHY THE IRA'S RUINED MY LIFE SAYS THE HOBBLED YOUTH AS HIS GIRLFRIEND GETS UP TO DANCE WITHOUT HIM BUT AT LEAST I'M ALIVE WITH TYPICAL BLACK HUMOR BELFAST RESIDENTS HAVE A NICKNAME FOR THE FATAL CONSEQUENCES OF SQUEALING TO THE POLICE IT IS CALLED A KNEECAPPING IN THE HEAD SEE RELATED LETTER LETTERS TO THE EDITOR BRUTAL JUSTICE IN NORTHERN IRELAND WSJ AUG 11 1993 9307060094 YY93 MM08 9308110082 930719 LETTERS TO THE EDITOR WHY NOT EMULATE GERMAN SUCCESS JOHN FUND IS RIGHTFULLY CONCERNED ABOUT BILL CLINTON'S ODDBALL INTEREST IN GERMANY'S SOCIAL MARKET ECONOMY WURST IDEA GERMAN MODEL WRONG FOR BILL EDITORIAL PAGE JUNE 29 AFTER ALL WHY WOULD AMERICANS WANT TO ADOPT POLICIES THAT HAVE GIVEN GERMANS FREE UNIVERSITY EDUCATION UNIVERSAL HEALTH CARE SAFE STREETS AND PARKS A FIRSTRATE TRANSPORTATION SYSTEM THE WORLD'S BESTTRAINED WORK FORCE INTELLIGENT PUBLIC DISCOURSE AND A HALFCENTURY OF GROWTH THAT TRANSFORMED THEM FROM A WARFLATTENED WASTELAND INTO AN ECONOMIC COLOSSUS IN THE FIRST RANK OF THE WORLD'S DEMOCRACIES AN ODD LOT THOSE CLINTON DEMOCRATS TEACHING THEIR DAUGHTERS A SECOND LANGUAGE DOING ORIGINALLANGUAGE RESEARCH AND SCOURING THE WORLD FOR SOLUTIONS TO AMERICA'S MANY SOCIAL PROBLEMS THEY SHOULD BE HOME DOING THE THINGS THAT MAKE US FEEL GOOD ABOUT OURSELVES LIKE WATCHING RERUNS OF HOGAN'S HEROES AND MAKING SPEECHES ABOUT SHINING CITIES UPON THE HILL OR COULD IT BE THAT CLINTON DEMOCRATS KNOW SOMETHING THAT HAS ESCAPED JOHN FUND THAT AMERICA'S GREATNESS IS IN LARGE MEASURE DUE TO OUR ABILITY TO BORROW AND IMPROVE UPON WHAT THE REST OF THE WORLD HAS TO OFFER MR FAGAN IS A FORMER AMERICAN DIPLOMAT WHO SERVED IN GERMANY SEE RELATED LETTERS LETTERS TO THE EDITOR MANY GERMAN VIRTUES ARE MERELY ILLUSIONS WSJ AUG 11 1993 9307190091 YY93 MM08 9308110050 930714 LETTERS TO THE EDITOR DON'T DISTORT CLINTON EDUCATION REFORM I DON'T MIND HONEST DIFFERENCES OVER POLICY ANYONE WHO HAS EVER TRIED TO LEAD AN EDUCATION REFORM MOVEMENT AS I HAVE KNOWS THAT ON MOST IMPORTANT ISSUES THERE IS MORE THAN ONE LEGITIMATE POINT OF VIEW DEBATES OVER POLICY ARE IMPORTANT TO THE PROCESS DELIBERATE DISTORTIONS ARE ANOTHER STORY FORMER ASSISTANT SECRETARIES OF EDUCATION FROM THE REAGAN/BUSH ADMINISTRATIONS HAVE CREATED A COTTAGE INDUSTRY OF DISTORTING PRESIDENT CLINTON'S EDUCATION REFORM PROPOSAL THE GOALS 2000 EDUCATE AMERICA ACT BRUNO MANNO MADE THE LATEST CONTRIBUTION WITH HIS JUNE 22 EDITORIAL PAGE ARTICLE DELIVER US FROM CLINTON'S SCHOOLS BILL PRESIDENT CLINTON'S BILL HAS A BIPARTISAN FOUNDATION ITINCORPORATES THE NATIONAL EDUCATION GOALS ESTABLISHED IN 1990 BY PRESIDENT BUSH AND THE NATION'S GOVERNORS LED BY BILL CLINTON IT ADVANCES THE CAUSE OF A VOLUNTARY NATIONAL SYSTEM OF INTERNATIONALLY COMPETITIVE STANDARDS FOR WHAT STUDENTS SHOULD KNOW AND BE ABLE TO DO AND SUPPORTS STATES IN THEIR EFFORTS TO DESIGN NEW MEASURES OF STUDENT PERFORMANCE GEARED TO THESE STANDARDS IT PROVIDES FEDERAL SEED MONEY FOR STATE AND LOCAL REFORMS TO PROMOTE AN OVERHAUL OF OUR SCHOOLS SO THAT ALL STUDENTS CAN REACH THE CHALLENGING STANDARDS STATES LOCAL SCHOOL DISTRICTS AND INDIVIDUAL SCHOOLS WILL BE ABLE TO RECEIVE WAIVERS FROM FEDERAL RULES AND REGULATIONS THAT INTERFERE WITH THEIR REFORMS CRITICS HAVE ATTACKED THE BILL'S PROVISION FOR OPPORTUNITYTOLEARN STANDARDS WHICH MEASURE STUDENTS' ACCESS TO CURRICULUM INSTRUCTIONAL MATERIALS AND WELLPREPARED TEACHERS CRITICS CLAIM THESE STANDARDS ARE A RETREAT FROM AN EMPHASIS ON RESULTS THEY CONVENIENTLY OVERLOOK THE FACT THAT THE HEART OF GOALS 2000 IS THE ESTABLISHMENT OF CHALLENGING THOUGH VOLUNTARY NATIONAL STANDARDS FOR STUDENT PERFORMANCE THERE IS NO CONTRADICTION IN PAYING CAREFUL ATTENTION TO THE QUALITY INSTRUCTION NECESSARY TO PRODUCE THE RESULTS THESE SAME CRITICS ARGUE THAT OPPORTUNITYTOLEARN STANDARDS WILL LEAD TO EXCESSIVE FEDERAL REGULATION OF EVERYTHING FROM CURRICULUM TO CLASS SIZE TO PROFESSIONAL DEVELOPMENT THAT THEY WILL FUEL A NEW ROUND OF SCHOOL FINANCE LAWSUITS LEADING STATE COURTS TO TURN VOLUNTARY STANDARDS INTO MANDATES NONE OF THESE CHARGES IS TRUE THEY REFLECT A DELIBERATE MISREADING OF THE BILL AND A DENIAL OF THE BIPARTISAN ORIGINS OF THIS KEY FEATURE OF THE BILL TO READ MR MANNO AND OTHERS ONE WOULD THINK THAT THE IDEA FOR ESTABLISHING OPPORTUNITYTOLEARN STANDARDS CAME FROM SOME LIBERAL THINK TANK WRONG THE BILL'S FRAMEWORK FOR STANDARDS AND ASSESSMENTS IS BASED ON A 1992 REPORT BY THE NATIONAL COUNCIL ON STANDARDS AND TESTING THE COUNCIL WAS COCHAIRED BY GOV CARROLL CAMPBELL OF SOUTH CAROLINA AND INCLUDED SUCH LEADING REPUBLICANS AS ROGER PORTER ORRIN HATCH BILL GOODLING DAVID KEARNS AND CHESTER FINN LEADING DEMOCRATS SUCH AS ROY ROMER DALE KILDEE AND JEFF BINGAMAN ALSO SERVED ON THE COUNCIL THE RECOMMENDATIONS ABOUT OPPORTUNITYTOLEARN STANDARDS WERE CONTROVERSIAL AS A RESULT THE NATIONAL GOVERNORS' ASSOCIATION WORKED WITH VERMONT NEW YORK CALIFORNIA AND SOUTH CAROLINA TO DEFINE THE STANDARDS EACH STATE'S APPROACH TO EDUCATION REFORM WAS NATURALLY QUITE DIFFERENT HOWEVER THEY SHARED ONE KEY FEATURE THEY URGED MORECHALLENGING ACADEMIC STANDARDS FOR STUDENTS AND NEW WAYS OF ASSESSING STUDENT PERFORMANCE SUCH STANDARDS WERE SEEN AS AN INTEGRAL PART OF OVERALL REFORM EFFORTS NOT A BARRIER TO THEM EACH STATE ALSO TOOK A DECIDEDLY NONREGULATORY APPROACH TO OPPORTUNITYTOLEARN STANDARDS CONTRARY TO CRITICS' PREDICTIONS IN VERMONT FOR INSTANCE SCHOOLS ARE EXPECTED TO MONITOR THEIR OWN PROGRESS WITH EXTERNAL MONITORING OCCURRING ONLY WHEN STUDENT PERFORMANCE LEVELS ARE UNSATISFACTORY ALSO EACH STATE DEFINED OPPORTUNITYTOLEARN STANDARDS MORE BROADLY THAN DOES THE PRESIDENT'S BILL WHILE GOALS 2000 CAREFULLY FOCUSES THE STANDARDS ON TEACHING AND LEARNING THE STATES INCLUDED SUCH FACTORS AS STUDENT ACCESS TO SOCIAL SERVICES AND ADEQUATE FINANCIAL RESOURCES SEE RELATED LETTER LETTERS TO THE EDITOR EDUCATIONISTS WANT TO MOLD YOUR CHILD WSJ AUG 11 1993 9307140096 YY93 MM08 9308100151 930810 INTERNATIONAL KOHL PLAYING DOWN MONEY CRISIS SAYS GERMANY STILL SUPPORTS MAASTRICHT PACT BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT GERMAN CHANCELLOR HELMUT KOHL SAID EUROPE'S LATEST CURRENCY CRISIS COULD DELAY IMPLEMENTATION OF THE MAASTRICHT TREATY FOR A COUPLE OF YEARS BUT HE REAFFIRMED GERMANY'S COMMITMENT TO THE PLAN FOR EUROPEAN ECONOMIC AND POLITICAL UNION THE DECISION LAST WEEK TO EXPAND THE RANGE IN WHICH EUROPEAN CURRENCIES COULD FLUCTUATE AGAINST EACH OTHER WASN'T A DECISION AGAINST MAASTRICHT MR KOHL SAID COMMENTING PUBLICLY FOR THE FIRST TIME ON THE RECENT CRISIS IN THE EUROPEAN MONETARY SYSTEM IN AN INTERVIEW YESTERDAY ON GERMANY'S SAT1 CABLETV CHANNEL HE ARGUED THAT THE PROBLEMS FACING PLANS FOR EUROPEAN MONETARY UNION DON'T RISE PRIMARILY FROM THE EMS CRISIS BUT THE EXTENT TO WHICH ECONOMIC AND FISCAL POLICIES STILL NEED TO CONVERGE SEPARATELY GERMAN OFFICIALS RESPONDED COOLLY TO REPORTS THAT BRITISH PRIME MINISTER JOHN MAJOR WAS HOPING TO RESURRECT HIS EARLIER PROPOSAL FOR THE INTRODUCTION OF THE EUROPEAN CURRENCY UNIT AS A PARALLEL CURRENCY TO EUROPE'S NATIONAL CURRENCIES BONN LED OPPOSITION TO THE PLAN IN THE RUNUP TO THE MAASTRICHT TREATY AND WE STILL DON'T BELIEVE THIS IS A GOOD IDEA SAID A GERMAN OFFICIAL IN HIS TELEVISION INTERVIEW MR KOHL SOUGHT TO DISPEL SPECULATION THAT THE CURRENCY CRISIS HAS CAUSED A RIFT IN FRANCOGERMAN RELATIONS FUELING DOUBTS ABOUT EUROPE'S UNITY PROCESS UNDER THE MAASTRICHT TREATY FRANCOGERMAN RELATIONS REMAINED INTACT HE SAID ASSERTING THAT WE DIDN'T ISOLATE THE FRENCH ON AUG 2 TO DEFUSE THE EMS CRISIS EUROPEAN COMMUNITY FINANCE MINISTERS AGREED TO LET MOST CURRENCIES FLUCTUATE AS MUCH AS 15 UP OR DOWN AGAINST EACH OTHER COMPARED WITH A PREVIOUS GENERAL RANGE OF 225 UNDER THE EXCHANGE RATE MECHANISM OR ERM NATIONS COMMIT THEMSELVES TO SUPPORT THEIR CURRENCIES WITHIN A SPECIFIED TRADING RANGE AND MUST INTERVENE IN THE MARKETS AS NEEDED THE WIDER RANGES WERE AGREED UPON TO PREVENT MORE NATIONS FROM PULLING OUT OF THE ERM AS CERTAIN CURRENCIES CAME UNDER FIRE BY SPECULATORS WHILE THE TRADINGBAND CHANGE KEPT THE EMS ALIVE AT LEAST IN NAME SOME SAY IT AMOUNTED TO A DE FACTO SUSPENSION OF THE TRADING SCHEME IN THE INTERVIEW MR KOHL SAID THAT PRIOR TO THE AUG 2 DECISION TO WIDEN TRADING BANDS HE PERSONALLY OPPOSED A FRENCH PROPOSAL TO TEMPORARILY FLOAT THE MARK FROM ERM TO EASE TENSIONS IN THE CURRENCY GRID HE SAID HE TOLD THE FRENCH THAT HE DOUBTED WHETHER IT WAS A PLAN THAT OTHER GOVERNMENTS COULD ACCEPT MR KOHL'S PREDICTION WAS AT LEAST BORNE OUT BY DUTCH OFFICIALS WHO HAD INSISTED THAT IF THE MARK LEFT THE ERM THE GUILDER WOULD FOLLOW WHICH WAS MORE THAN THE FRENCH HAD BARGAINED FOR MR KOHL SAID HE AGREED WITH FRENCH PRIME MINISTER EDOUARD BALLADUR'S PROPOSAL THAT EUROPEAN COMMUNITY GOVERNMENT LEADERS DISCUSS THE TIMETABLE FOR A SINGLE EUROPEAN CURRENCY AT A SPECIAL EC SUMMIT IN OCTOBER MAASTRICHT GUIDELINES CURRENTLY FORESEE THE ADOPTION OF A SINGLE CURRENCY AND COMMON CENTRAL BANK IN EUROPE IN 1997 AT THE EARLIEST THE GERMAN CHANCELLOR DEFENDED THE BUNDESBANK'S TIGHT ANTIINFLATION POLICIES WHICH MANY ANALYSTS BELIEVE TOUCHED OFF THE CURRENCY CRISIS HE CONCEDED THAT EUROPE'S RECESSION HAS STRAINED THE MONETARY SYSTEM BUT HE WARNED AGAINST EASING MAASTRICHT'S STRICT GUIDELINES FOR NATIONAL ECONOMIES A CHECKLIST OF LIMITS ON DEFICITS INFLATION AND NATIONAL DEBT IF THAT RESULTS IN THE DELAY OF THE CURRENTLY FORESEEN TIMETABLE BY ONE TO TWO YEARS THEN IN WHAT WAY DOES THAT CHANGE THE PROCESS MR KOHL SAID WHAT IS DECISIVE IS THAT SOMETHING WILL HAPPEN IN THIS DECADE WHICH NOBODY WOULD HAVE BELIEVED POSSIBLE IN 90 YEARS OF THIS CENTURY THAT AFTER TWO WORLD WARS IT IS POSSIBLE TO REALLY BUILD THIS EUROPE A EUROPE OF INDIVIDUAL COUNTRIES INTO WHICH GERMANS AND THE FRENCH CAN BRING IN THEIR IDENTITIES BUT UNDER A EUROPEAN ROOF GERMANY IS THE ONLY EC COUNTRY NOT TO HAVE RATIFIED THE MAASTRICHT TREATY BUT MR KOHL SAID HE HOPES THAT GERMANY'S FEDERAL CONSTITUTIONAL COURT WILL RULE AGAINST COMPLAINTS CLAIMING UNLAWFUL DILUTION OF GERMAN SOVEREIGNTY HE SAID HE HOPED TO BE ABLE TO BRING A GERMAN RATIFICATION TO THE OCTOBER EC SUMMIT WHERE HE SAID GERMANY WILL STICK TO ITS INSISTENCE ON FRANKFURT AS THE LOCATION FOR A FUTURE EUROPEAN CENTRAL BANK I'M ACTUALLY VERY OPTIMISTIC HE SAID MR KOHL ADDED THAT PUTTING THE EUROPEAN CENTRAL BANK IN GERMANY WAS OBVIOUS AND THAT THE OTHER COUNTRIES UNDERSTOOD THIS IF SOME ONLY RELUCTANTLY THE DMARK IS AFTER ALL THE REFERENCE CURRENCY OF EUROPE IT IS NOTHING WE SHOULD BE ASHAMED OF MR KOHL SAID IT IS THE RESULT OF SENSIBLE HARD WORK OF THE GERMANS AND SMART POLICIES NOT THE LEAST FROM THE BUNDESBANK 9308100150 930810 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED AUGUST 6 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 ALLEGANY COUNTY MD WILL REDEEM ON SEPT 1 1993 65000 PRINCIPAL AMOUNT OF ITS 5875 SERIES 1977 POLLUTION CONTROL REVENUE BONDS DUE SEPT 1 2002 MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE ALLEGHENY COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON SEPT 1 1993 THE FOLLOWING 100000 PRINCIPAL AMOUNT OF ITS 6875 INDUSTRIAL DEVELOPMENT REVENUE BONDS 1977 SERIES A1 DUE SEPT 1 1997 AND 350000 PRINCIPAL AMOUNT OF ITS 6875 ENVIRONMENTAL IMPROVEMENT REVENUE BONDS 1977 SERIES AE DUE SEPT 1 1997 MELLON BANK PITTSBURGH IS TRUSTEE BALTIMORE COUNTY MD WILL REDEEM ON SEPT 1 1993 105000 PRINCIPAL AMOUNT OF ITS 6 SERIES 1973 POLLUTION CONTROL REVENUE BONDS DUE SEPT 1 1998 FIRST NATIONAL BANK OF MARYLAND BALTIMORE IS TRUSTEE CHATOM ALA INDUSTRIAL DEVELOPMENT BOARD HAS CALLED FOR OPTIONAL REDEMPTION ITS SERIES 1978A NATIONAL RURAL UTILITIES COOPERATIVE FINANCE CORP GUARANTEED POLLUTION CONTROL REVENUE BONDS DUE 19941998 AND 2008 ON SEPT 1 1993 MORGAN GUARANTY TRUST CO OF NEW YORK IS TRUSTEE FLAT ROCK WILL REDEEM ON SEPT 1 1993 150000 AGGREGATE PRINCIPAL AMOUNT OF ITS 6 1/8 SERIES B BONDS DUE SEPT 1 2001 AND 2000000 AGGREGATE PRINCIPAL AMOUNT OF ITS 5375 SERIES A BONDS DUE SEPT 1 1997 MORGAN GUARANTY TRUST CO OF NEW YORK IS TRUSTEE HOPEWELL VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON SEPT 1 1993 180000 PRINCIPAL AMOUNT OF ITS 9 3/4 SERIES 1976A MEDICAL FACILITIES REVENUE BONDS DUE SEPT 1 1999 FIRST VIRGINIA BANK OF TIDEWATER NORFOLK VA IS TRUSTEE MISSOURI HOUSING DEVELOPMENT COMMISSION WILL REDEEM ON SEPT 1 1993 25000 PRINCIPAL AMOUNT OF ITS 9625 QUALIFIED MORTGAGE PURCHASE BONDS 1980 SERIES DUE SEPT 1 2006 MERCANTILE BANK OF ST LOUIS IS TRUSTEE OKLAHOMA INDUSTRIAL CULTURAL & PUBLIC FACILITIES AUTHORITY WILL REDEEM ON SEPT 1 1993 30000 PRINCIPAL AMOUNT OF ITS 77 COMMERCIAL DEVELOPMENT FIRST MORTGAGE REVENUE BONDS 1976 SERIES A DUE MARCH 1 2001 MELLON BANK PITTSBURGH IS TRUSTEE ONTARIO WILL REDEEM ON AUG 30 1993 ITS 79 SERIES EU DEBENTURES DUE OCT 15 2003 UNITED MISSOURI TRUST CO OF NEW YORK IS FISCAL AGENT SALEM VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON SEPT 1 1993 220000 AGGREGATE PRINCIPAL AMOUNT OF ITS SERIES A FIRST MORTGAGE HOSPITAL REVENUE BONDS DUE SEPT 1 1994 NATIONSBANK OF VIRGINIA ATLANTA GA IS TRUSTEE SHENANDOAH COUNTY VA INDUSTRIAL DEVELOPMENT AUTHORITY HAS CALLED FOR OPTIONAL REDEMPTION ON SEPT 1 1993 ITS 775 SERIES 1974 POLLUTION CONTROL REVENUE BONDS DUE SEPT 1 1994 SIGNET BANK/VIRGINIA RICHMOND VA IS TRUSTEE SOUTHERN CALIFORNIA METROPOLITAN WATER DISTRICT WILL REDEEM ON SEPT 1 1993 ITS WATERWORKS REFUNDING GENERAL OBLIGATION BONDS 1976 ISSUE DUE MARCH 1 19942000 FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS ESCROW AGENT SWEETWATER COUNTY WYO WILL REDEEM ON SEPT 1 1993 400000 PRINCIPAL AMOUNT OF ITS 59 SERIES 1973 POLLUTION CONTROL REVENUE BONDS DUE SEPT 1 2003 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE WYOMING INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON SEPT 1 1993 ITS 55 SERIES A POLLUTION CONTROL REVENUE BONDS DUE NOV 1 2007 MELLON BANK PITTSBURGH IS TRUSTEE ILLINOIS BELL TELEPHONE CO A SUBSIDIARY OF AMERITECH CORP WILL REDEEM ON SEPT 1 1993 ITS 6 SERIES I BONDS DUE JULY 1 1998 HARRIS TRUST & SAVINGS BANK CHICAGO IS TRUSTEE 9308100149 930810 JAPAN TOUGHENS FINANCIAL DISCLOSURE LAW BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FOR YEARS SOME OF JAPAN'S TOP EXECUTIVES HAVE SWEPT THEIR COMPANIES' PROBLEMS UNDER THE RUG OF THIS COUNTRY'S LAX FINANCIAL DISCLOSURE LAWS BUT THANKS TO A RECENT CHANGE IN THOSE LAWS ANGRY SHAREHOLDERS CAN NOW CHALLENGE TOP MANAGEMENT MUCH MORE EASILY THAN BEFORE UNTIL RECENTLY IRATE SHAREHOLDERS MIGHT HAVE TO PUT UP A 1 MILLION BOND IN COURT AS A SIGN OF GOOD FAITH BEFORE THEY COULD BRING A CASE AGAINST TOP MANAGEMENT IN JUNE THE COST FELL TO 8200 YEN OR ABOUT 78 THIS OCTOBER ANOTHER LEGAL CHANGE WILL LET SHAREHOLDER GROUPS REPRESENTING JUST 3 OF A COMPANY'S SHARES SEE THE COMPANY LEDGERS BEFORE A GROUP HAD TO HAVE AT LEAST 10 OF SHARES OUTSTANDING TO GET IN TO SEE THE BOOKS JAPANESE LAWYERS SAY THE NEW LAWS ARE AMONG THE MOST SIGNIFICANT EVER FOR THE COUNTRY THE LOWER COST TO SUE IS A MAJOR STEP FOR JAPANESE SHAREHOLDERS' RIGHTS SAYS TOSHIRO UEYANAGI A JAPANESE SECURITIES LAWYER A FEW WEEKS AFTER THE LAWS TOOK EFFECT SOME OF JAPAN'S BIGGEST COMPANIES NOW FACE LAWSUITS AIMED AT THEIR SOREST SPOTS ONE LAWYER HOPES TO USE THE LAW TO EXAMINE POLITICAL CONTRIBUTIONS BY A MAJOR JAPANESE CONSTRUCTION FIRM THAT'S INVOLVED IN A CONTINUING PAYOFF SCANDAL FOREIGN OBSERVERS ALSO APPLAUD THE NEW LAWS ANYTHING THAT INCREASES CORPORATE JAPAN'S CULTURE OF ACCOUNTABILITY IS GOOD SAYS JOSEPH LUFKIN MANAGING DIRECTOR OF GLOBAL PROXY SERVICES CORP WHICH REPRESENTS THE INTERESTS OF SEVERAL LARGE US INSTITUTIONAL INVESTORS BUT THE CHANGES ARE CAUSING ANGUISH IN SOME JAPANESE BOARDROOMS FOR INSTANCE JAPAN'S GIANT BANKS ARE APPARENTLY WORRIED THAT THE LEGAL CHANGES SPELL THE END FOR THE PARTICULARLY CLOSE RELATIONSHIPS BETWEEN BANKS AND THEIR CUSTOMERS MORE AND MORE OF THE BANKERS WE TALK TO ARE SAYING THE IDEA OF SUPPORTING BORROWERS JUST BECAUSE OF A RELATIONSHIP WON'T HOLD NOW SAYS MASARU KAKUTANI ASSOCIATE DIRECTOR OF MOODY'S JAPAN A RATING AGENCY NOW BANKS WILL BE UNDER GREATER PRESSURE TO JUSTIFY CONTINUED LOANS TO A TROUBLED BORROWER GIVEN THE RECENT SPATE OF CORPORATE SCANDALS IT IS EASY TO SEE WHY SHAREHOLDERS WELCOME THE CHANGES AND SOME COMPANIES ABHOR THEM THERE WAS THE CASE OF OIL REFINER SHOWA SHELL SEKIYU KK WHERE FOR YEARS EMPLOYEES HID FOREIGNEXCHANGE LOSSES OF 1663 BILLION YEN FILM DISTRIBUTOR NIKKATSU CORP WENT BANKRUPT JUST WEEKS AFTER ISSUING AN UPBEAT CORPORATE EARNINGS REPORT NIPPON STEEL & CHEMICAL CO SAID IT DISCOVERED LOSSES OF 1415 BILLION YEN IN FOREIGNEXCHANGE TRADING ONLY AFTER THE HEAD OF ACCOUNTING WAS KILLED IN A RAILWAY ACCIDENT EVEN AFTER A SCANDAL IS MADE PUBLIC A JAPANESE COMPANY IS LOATH TO TALK ABOUT ITS FINANCES A SHOWA SHELL SPOKESMAN SAYS THAT COMPANY HAS IMPROVED ITS INTERNAL CHECKS BUT DECLINES TO EXPLAIN HOW THE LEGAL CHANGES HAVE PROMPTED JAPAN INC TO STAGE A PUBLIC RELATIONS BLITZ PREACHING CORPORATE RECTITUDE FOR THE FIRST TIME EVER THE JAPAN SECURITIES DEALERS ASSOCIATION HAS LECTURED THE PRESIDENTS OF SOME 460 PUBLICLY OWNED COMPANIES ON CORPORATE DISCLOSURE NOMURA SECURITIES CO IS HOLDING SEMINARS CALLING FOR BETTER CORPORATE GOVERNANCE CONCERNED ABOUT THE RECENT FINANCIAL SCANDALS JAPAN'S CENTRAL BANK IS PROMOTING NEW FINANCIAL DISCLOSURE RULES FOR COMPANIES THAT TRADE IN FINANCIAL FUTURES KUNIAKI KANDA HEAD OF THE OVERTHECOUNTER COMPANIES SECTION AT THE SECURITIES DEALERS ASSOCIATION SAYS HIS GROUP IS ALSO LECTURING THE PRESIDENTS OF SMALLER JAPANESE COMPANIES BECAUSE OF RECENT INSIDERTRADING INVESTIGATIONS RELATED TO THE SMALL FIRMS IN ORDER TO CURB THIS KIND OF ILLEGAL TRADING WE'RE PRESSING PUBLICLY HELD COMPANIES TO DISCLOSE MORE HE SAYS WE'RE GOING TO PRESS THEM TO DISCLOSE THE FACTS MR KAKUTANI SAYS JAPANESE COMPANIES ACTUALLY PROVIDE BETTER INFORMATION ABOUT PRODUCTION OPERATIONS THAN THEIR US COUNTERPARTS BUT WON'T TALK FINANCE FOR FEAR OF RELEASING SENSITIVE DATA TO THE COMPETITION AS A RESULT FINANCIAL DISCLOSURE IS SOMETHING YOU DON'T SEE IN JAPANESE BALANCE SHEETS HE SAYS LAWYERS REPRESENTING JAPANESE SHAREHOLDERS CALL THE NEW LAW A WATERSHED ATTORNEY HIDETO IIDA SAYS HE HAS INITIATED LEGAL PROCEEDINGS THAT COULD CULMINATE IN SUITS AGAINST NOMURA DAIWA SECURITIES CO AND SANYO SECURITIES CO OVER UNDISCLOSED PAYMENTS TO FAVORED CLIENTS THAT DIDN'T SHOW UP ON THE BALANCE SHEETS THE COMPANIES SAY THEY HAVEN'T BEEN CONTACTED ABOUT THE SUITS POSSIBLY BECAUSE OF DELAYS IN LEGAL PROCESSING ANOTHER LAWYER IS DEMANDING THAT CONSTRUCTION COMPANY HAZAMA CORP RECOVER FROM FORMER OFFICALS MORE THAN THREE BILLION YEN THAT SENIOR EXECUTIVES ALLEGEDLY PAID TO JAPANESE POLITICIANS THE CHAIRMAN AND PRESIDENT OF HAZAMA WERE ARRESTED IN LATE JUNE ON SUSPICION OF PAYING BRIBES TO SECURE PUBLIC WORKS CONTRACTS IN THE CITY OF SENDAI HAZAMA SAYS IT IS STUDYING THE LAWYER'S DEMAND UNDER JAPANESE LEGAL PROCEEDINGS THE COMPANY HAS ABOUT A MONTH TO RESPOND BEFORE THE SUIT IS FILED IN COURT TO A US LAWYER THE SYSTEM STILL HAS A FEW BUGS GROUP LAWSUITS FOR EXAMPLE ONLY PROVIDE WHAT'S KNOWN AS DERIVATIVE ACTION MEANING THAT ANY MONEY SHAREHOLDERS WIN WHEN THEY SUE THE BOARD IS PAID BACK TO THE COMPANY THE INDIVIDUAL SHAREHOLDERS WHO SUE RECEIVE NOTHING BUT JAPANESE LAWYERS SAY THIS IS NECESSARY BECAUSE ORDINARY JAPANESE LOOK DOWN ON SUING FOR PERSONAL GAIN IF THE MONEY IS GIVEN BACK TO THE COMPANY THE SHAREHOLDERS STILL GAIN THROUGH HIGHER DIVIDEND PAYMENTS OR A FATTER BALANCE SHEET OR SO THE REASONING GOES TO MAKE CORPORATE GOVERNANCE EFFECTIVE IN JAPAN DERIVATIVE ACTION IS THE MOST EFFICIENT WAY TO GO SAYS KOICHI KUSANO A LAWYER AT NISHIMURA & SANADA A TOP CORPORATE LAW FIRM IN JAPAN I'VE HEARD THERE'S ABOUT 10 OF THESE CASES ALREADY PENDING IN THE TOKYO DISTRICT COURT 9308100148 930810 TECHNOLOGY IN THE LAB JAPANESE AEROSPACE HAS A MATERIAL GUY BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL MITAKA CITY JAPAN LISTEN CAREFULLY AND YOU CAN ALMOST HEAR THE SCREAMS OF TORTURED MATERIAL EMANATING FROM TAKASHI ISHIKAWA'S LABORATORY SPECIFICALLY THAT IS THE SCREAMS OF THREEDIMENSIONAL CERAMIC MATRIX COMPOSITE A STRONG HIGHLY HEATRESISTANT MATERIAL IN THE VANGUARD OF JAPAN'S PLANS TO BUILD ITS OWN SPACE PROGRAM AND A SUPPORTIVE AEROSPACE INDUSTRY ALONG THE WAY COMPARED WITH THE US AND EUROPE JAPAN HAS BEEN SLOW TO DEVELOP ITS OWN AEROSPACE PROGRAM ITS MAJOR AEROSPACE COMPANIES IN FACT HAVE TENDED TO SERVE MAINLY AS SUBCONTRACTORS TO SUCH US GIANTS AS BOEING CO WHAT'S MORE JAPAN'S MAJOR ATTEMPTS TO STRIKE OUT ON ITS OWN HAVE FREQUENTLY LED TO HUMILIATING REVERSES AS IN THE DEVELOPMENT OF A LAUNCH VEHICLE CALLED THE HII WHOSE ENGINE BLEW UP REPEATEDLY IN TEST FIRINGS ONLY RECENTLY HAS THE HII ENGINE BEGUN FIRING NORMALLY SUCH DIFFICULTIES HAVE DONE LITTLE TO DAMPEN JAPAN'S RESOLVE TO CATCH UP THAT IS WHERE RESEARCHERS LIKE DR ISHIKAWA COME IN AS HEAD OF THE COMPOSITESTRUCTURE SECTION OF JAPAN'S NATIONAL AEROSPACE LABORATORY IT'S HIS JOB TO DESIGN ADVANCED CERAMIC COMPOSITE MATERIALS THAT COULD HELP PROTECT FUTURE JAPANESE PLANES AND SPACECRAFT INCLUDING A PROPOSED HYPERSONIC SPACEPLANE THAT COULD FLY FROM NEW YORK TO TOKYO IN JUST A FEW HOURS FROM HIGH TEMPERATURES CAUSED BY ATMOSPHERIC FRICTION HERE IN A NEW BUILDING DECORATED FITTINGLY ENOUGH IN CERAMIC TILE ON A TREELINED CAMPUS IN THE WESTERN SUBURBS OF TOKYO DR ISHIKAWA SUBJECTS HIS FAVORITE COMPOSITES TO A SERIES OF CRUEL TESTS DESIGNED TO TEST THEIR HEAT RESISTANCE THEIR ABILITY TO WITHSTAND STRESS AND STRAIN AND THEIR BRUTE TENSILE STRENGTH ORDINARY COMPOSITES ARE STRONG BUT BRITTLE MATERIALS THAT HAVE BEEN REINFORCED WITH A MATRIX OF STRONG FIBER COMPOSITES MADE ENTIRELY OF CARBON ARE WIDELY USED WHERE HEAT RESISTANCE IS A PRIORITY SUCH AS IN THE US SPACE SHUTTLE UNFORTUNATELY SUCH MATERIALS REQUIRE A SPECIAL COATING TO PREVENT THEM FROM DISINTEGRATING IN AN OXYGEN ATMOSPHERE WHEN THE TEMPERATURE IS HIGH THAT COATING WEARS AWAY EASILY HOWEVER SO CARBON COMPOSITES AREN'T PARTICULARLY USEFUL FOR HYPERSONIC AIRCRAFT WHICH WOULD HAVE TO ENDURE HIGH TEMPERATURES FOR HOURS AT A TIME RESEARCHERS SUCH AS DR ISHIKAWA HAVE LONG BEEN INTERESTED INSTEAD IN CERAMIC COMPOSITES WHICH RESIST TEMPERATURE ALMOST AS WELL AS CARBON AND DON'T DISINTEGRATE IN OXYGEN CERAMICS HOWEVER ARE DIFFICULT TO MANUFACTURE AND DON'T HAVE THE STRENGTH OF CARBON COMPOSITES SO IN COOPERATION WITH INDUSTRIAL SCIENTISTS AT UBE INDUSTRIES LTD A CHEMICAL AND MACHINERY MAKER AND COTTON SPINNER SHIKIBO LTD DR ISHIKAWA BEGAN TO EXPLORE NEW WAYS OF MAKING THE CERAMIC COMPOSITES AN INVESTIGATION THAT RECENTLY ALLOWED THE SCIENTISTS TO DOUBLE THE TENSILE STRENGTH OF PREVIOUS CERAMIC COMPOSITES TO IMPROVE THE MATERIAL'S STRENGTH DR ISHIKAWA'S TEAM DECIDED TO WORK WITH A THREEDIMENSIONAL CERAMIC INSTEAD OF THE TRADITIONAL TWODIMENSIONAL COMPOSITE IN WHICH FIBER IS USED TO REINFORCE A THIN SHEET OF CERAMIC FIRST SHIKIBO'S ENGINEERS USED A SPECIAL FIBER TO WEAVE A THICK BULKY FABRIC THAT RESEMBLES HALFINCHTHICK CANVAS UBE SCIENTISTS THEN SOAKED THAT FABRIC IN A POLYMER BATH ALLOWING THE FABRIC TO SOAK UP ATOMS OF SILICON TITANIUM CARBON AND OXYGEN THAT UPON FIRING HARDENED INTO CERAMIC AFTER THAT IT'S DR ISHIKAWA'S TURN IN HIS LAB THE ROOM IS DOMINATED BY FOUR HUGE PIECES OF EQUIPMENT TENSILE STRENGTH TESTERS RESEMBLING INDUSTRIAL DRILL PRESSES FLANKED BY COMPLEX CONTROL PANELS AND COMPUTER SCREENS WHERE THE DRILL BIT WOULD NORMALLY BE HOWEVER THIS EQUIPMENT FEATURES A STURDY METAL OVEN AS THICK AS AN OFFICE SAFE INSIDE THE OVEN ARE UPPER AND LOWER CLAMPS EACH BEARING A TRIANGULAR NOTCHSHAPED CUT ENTER THE CERAMIC COMPOSITE ITSELF A SHINY CORRUGATED MATERIAL WITH STRANDS OF WHAT LOOK LIKE THICK BLACK TWINE STICKING OUT OF IT EACH SIXINCH SAMPLE WHICH LOOKS SOMEWHAT LIKE A FLATTENED DUMBBELL WHOSE ENDS HAVE BEEN TRIMMED INTO TRIANGULAR WEDGES FITS NEATLY INTO THE CLAMPS THEN ONE OF THE LABORATORY SCIENTISTS FLIPS A SWITCH THE OVEN HEATS TO A TEMPERATURE AS HIGH AS 2372 DEGREES FAHRENHEIT AND THE CLAMPS MOVE IN OPPOSITE DIRECTIONS TEARING THE COMPOSITE APART IN THE PROCESS MOST SAMPLES FRACTURE CLEANLY ACROSS THE MIDDLE RIGHT ABOUT WHERE THE WEIGHTLIFTER WOULD BE STANDING IF THE SAMPLE WAS IN FACT A DUMBBELL DR ISHIKAWA HOWEVER IS PARTICULARLY HAPPY WITH THE STANDOUT A SAMPLE THAT REFUSED TO GO CLEANLY INSTEAD OF CRACKING HORIZONTALLY ACROSS THE MIDDLE THIS SAMPLE SHEARED VERTICALLY AT ONE END ESSENTIALLY TEARING OFF BOTH SIDES OF THE TRIANGULAR WEDGE THAT HELD THE SAMPLE IN ITS CLAMPS THIS MATERIAL WAS TOO STRONG FOR THE CURRENT ROUND OF TESTS HE SAYS NEVERTHELESS HE SAYS HIS DATA FROM OTHER SAMPLES SHOW THAT THE LATEST MATERIAL HAS TWICE THE TENSILE STRENGTH OF THAT DEVELOPED BY A COMPETING GROUP AT THE SOCIETE EUROPEENE DE PROPULSION AN AEROSPACE LABORATORY IN FRANCE FOR HIS NEXT ROUND DR ISHIKAWA PLANS TO MAKE SKINNIER SAMPLES THAT WILL FRACTURE WHERE THEY'RE SUPPOSED TO INFLICTION OF MATERIAL PAIN MIGHT SERVE AS A WORKABLE THEME FOR THE ENTIRE COMPOSITE STRUCTURE TESTING FACILITY WHERE DR ISHIKAWA'S LABORATORY IS HOUSED OTHER ROOMS FEATURE AN IMPACT TESTER THAT HAMMERS FLAT SHEETS OF CARBON COMPOSITE WITH DROPPED WEIGHTS A CRUCIFORM STRESS TESTER THAT YANKS CHUNKS OF MATERIAL IN FOUR DIFFERENT DIRECTIONS AND FATIGUE TESTERS THAT PUSH AND PULL THE ENDS OF THIN COMPOSITE STRIPS TENS OR HUNDREDS OF TIMES A SECOND DR ISHIKAWA HOWEVER ISN'T ENTIRELY FREE TO FOLLOW HIS CURIOSITY WHILE HE OFFICIALLY LEADS THE RESEARCH PROJECT INTO THREEDIMENSIONAL CERAMIC COMPOSITES FOR INSTANCE HIS COLLEAGUES AT UBE AREN'T LETTING HIM IN ON THE DETAILS OF THE POLYMER BATH USED IN MAKING THE CERAMIC MATERIAL BEING TESTED WHAT'S MORE RESULTS OF HIS EXPERIMENTS ARE TURNED OVER TO JAPANESE AEROSPACE COMPANIES LIKE MITSUBISHI HEAVY INDUSTRIES LTD AS SOON AS THEY'RE REMOTELY VIABLE FOR COMMERCIAL USE WE AREN'T A UNIVERSITY SAYS DR ISHIKAWA EVERYTHING WE DO HAS TO SUPPORT OUR INDUSTRY 9308100147 930810 MARKETING & MEDIA ADVERTISING CONTINENTAL GROUNDS WELLS RICH OPTS TO FLY WITH RICHARDS GROUP BY KEVIN GOLDMAN CONTINENTAL AIRLINES FIRED AD AGENCY WELLS RICH GREENE BDDP AFTER THREEANDAHALF YEARS AND AWARDED ITS 42 MILLION ACCOUNT TO RICHARDS GROUP OF DALLAS IT'S A DIVORCE FILLED WITH TURBULENCE IN SUMMARILY DISMISSING WELLS RICH CONTINENTAL DIDN'T SO MUCH AS STAGE THE COURTESY OF A FORMAL REVIEW BEFORE HANDING THE BUSINESS TO THE RICHARDS GROUP WHICH IS ONEFOURTH WELLS RICH'S SIZE WELLS RICH COMMITTED A GAFFE THAT COST CONTINENTAL 4 MILLION IN MAY WHEN THE AGENCY ADVERTISED AN INCORRECT LOWER FARE IN BOSTON NEWSPAPERS FORCING THE AIRLINE TO HONOR THE RATE CONTINENTAL SAYS THE MISSTEP WHICH WAS WELLS RICH'S ONLY MISTAKE ON THE ACCOUNT DIDN'T CONTRIBUTE TO ITS DECISION TO DUMP THE AGENCY LESS THAN TWO WEEKS AGO WELLS RICH EXECUTIVES APPEARED BEFORE CONTINENTAL BRASS AT THE AIRLINE'S HEADQUARTERS IN HOUSTON TO PRESENT FOUR NEW CAMPAIGNS FOR CONTINENTAL'S SHORT HAUL SERVICE CONTINENTAL'S REACTION SAYS ONE SENIOR WELLS RICH EXECUTIVE WAS ENTHUSIASTIC A CONTINENTAL EXECUTIVE WHO ATTENDED THE MEETING CONCEDES IT WAS NICE WORK WE'RE SHOCKED SAYS DAVID SKLAVER WHO LAST WEEK WAS PROMOTED TO PRESIDENT OF WELLS RICH OVERSEEING THE AGENCY'S FLAGSHIP NEW YORK OFFICES THE LOSS MEANS THE AGENCY WHICH HAS ANNUAL BILLINGS OF 900 MILLION BUT HAS LOST MORE BUSINESS IN RECENT YEARS THAN IT HAS WON SURELY WILL LAY OFF SOME EMPLOYEES AND CLOSE ITS HOUSTON OFFICE THAT BRANCH WITH A STAFF OF ABOUT A DOZEN SERVES ONLY THE CONTINENTAL ACCOUNT IN TOTAL THE AGENCY HAS ABOUT 40 EMPLOYEES ASSIGNED TO CONTINENTAL MR SKLAVER DECLINES TO COMMENT ON POSSIBLE LAYOFFS THE AGENCY FEELS PARTICULARLY STUNG INSIDERS SAY SINCE WELLS RICH SPEARHEADED THE AIRLINE'S AD CAMPAIGN EARLIER THIS YEAR AS CONTINENTAL EMERGED A SECOND TIME FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE ADS READ THANKS TO YOU WE DID IT NOW WATCH US FLY THE WELLS RICH EXECUTIVE ALSO SAYS THE AGENCY WAS STUCK WITH SEVERAL MILLION DOLLARS WORTH OF MEDIA BILLS FROM BEFORE THE CHAPTER 11 FILING THE SELECTION OF THE RICHARDS GROUP IS SOMEWHAT OF A SURPRISE THAT AGENCY WITH ABOUT 235 EMPLOYEES AND 225 MILLION IN ANNUAL BILLINGS IS WIDELY CREDITED WITH SOLID CREATIVE WORK SUCH AS THE FOLKSY ADS FOR THE MOTEL 6 CHAIN WE'LL LEAVE THE LIGHT ON FOR YOU BUT IT DOESN'T HAVE A BACKGROUND IN THE BAREKNUCKLE RAPIDLY CHANGING AIRLINE BUSINESS ACCORDING TO ONE ESTIMATE 200000 FARE CHANGES CAN OCCUR IN A SINGLE DAY AND ADS HAVE TO BE PRODUCED ON A DAYTODAY BASIS TO RESPOND TO THE DIZZYING PRICE WARS THAT CAN START WITHOUT WARNING WELLS RICH FOR INSTANCE WORKED OVER THE WEEKEND TO GRIND OUT ADS IN THE LATEST AIRFARE SKIRMISH STARTED BY DELTA AIR LINES EVEN THOUGH IT HAD LEARNED OF ITS DISMISSAL LATE THURSDAY STAN RICHARDS A PRINCIPAL AND MANAGING SUPERVISOR AT THE RICHARDS GROUP SAYS THE CRITICISM IS UNFAIR SINCE THE AGENCY HAS HANDLED THREE AIRLINES INCLUDING TEXAS INTERNATIONAL WE REACTED TO FARE WARS QUICKLY HE SAYS APPARENTLY THE RICHARDS GROUP IMPRESSED DONALD G VALENTINE THE AIRLINE'S NEW SENIOR VICE PRESIDENT OF MARKETING WHO WAS HEAD OF MARKETING AT SOUTHWEST AIRLINES SEVERAL YEARS AGO HE JOINED CONTINENTAL LESS THAN THREE MONTHS AGO IN AN INTERVIEW YESTERDAY MR VALENTINE SAID THAT WELLS RICH DID A GOOD JOB AND THAT HE HADN'T INTENDED TO FIRE THE AGENCY WHEN HE CAME ON BOARD NONETHELESS HE CONTINUED IT'S A NEW DAY AND WITH THE EMERGENCE FROM CHAPTER 11 WE MADE A DECISION TO BRING IN A FRESH PERSPECTIVE ORIGINALLY I WANTED TO LIVE WITH THE EXISTING RESOURCES BUT IT BECAME APPARENT THAT SOME NEW THINKING SHOULD BE BROUGHT TO THE PARTY LESS THAN A WEEK BEFORE WELLS RICH WAS FIRED IT RECEIVED HIGH MARKS IN AN ANNUAL PERFORMANCE REVIEW FROM THE CLIENT BUT I'M NEW SAYS MR VALENTINE AND I WAS BROUGHT IN TO GIVE THE AIRLINE A NEW DIRECTION WELLS RICH WILL CONTINUE TO PRODUCE ADVERTISEMENTS FOR CONTINENTAL FOR THE PRESENT TIME IT WASN'T IMMEDIATELY CLEAR WHEN THE NEW SHOP WILL TAKE OVER MR RICHARDS SAYS HIS AGENCY WILL HIRE ABOUT 25 ADDITIONAL EMPLOYEES TO HANDLE THE BUSINESS ALTHOUGH IT HAS NO CURRENT PLANS TO OPEN A HOUSTON OFFICE RICHARDS GROUP EXECUTIVES MET INFORMALLY WITH CONTINENTAL OFFICIALS ON WEDNESDAY SAYS MR RICHARDS TO PRESENT OUR CREATIVE CREDENTIALS AND TALK PHILOSOPHY IT'LL BE SEVERAL WEEKS BEFORE WE GO BACK TO THE AIRLINE WITH A FIRM CAMPAIGN AND MARKETING PLAN MR SKLAVER AT WELLS RICH SAYS HE IS CONFIDENT THE AGENCY WHICH WAS FOUNDED IN 1966 AND COUNTED NOWDEFUNCT BRANIFF AIRLINES AMONG ITS FIRST CLIENTS WILL BE BACK IN THE AIRLINE BUSINESS VERY SOON IT'S A VERY UNSTABLE TIME FOR THE AIRLINE INDUSTRY AND SOMETHING WILL SHAKE LOOSE JUST DAYS AFTER AWARDING AGENCY BBDO A GLOBAL ACCOUNT DUPONT IS PUTTING INTO REVIEW TWO OTHER BIG ACCOUNTS AT BBDO AS PART OF A WORLDWIDE ADVERTISING CONSOLIDATION WITH COMBINED ESTIMATED BILLINGS OF 30 MILLION CONFIRMING REPORTS IN TRADE PUBLICATIONS A SPOKESWOMAN FOR DUPONT'S LYCRA SAID THE AD ACCOUNT IS IN REVIEW CONTENDERS ARE INTERPUBLIC GROUP'S MCCANNERICKSON SAATCHI & SAATCHI CO'S SAATCHI & SAATCHI ADVERTISING YOUNG & RUBICAM AND BBDO THE INCUMBENT LAST WEEK DUPONT CONSOLIDATED THE CORIAN SURFACINGMATERIAL ACCOUNT WITH ESTIMATED GLOBAL BILLINGS OF ABOUT 15 MILLION AT BBDO NEW YORK AGENCY AYER PREVIOUSLY HANDLED THE US PORTION OF THE ACCOUNT INDUSTRY EXECUTIVES SAID THE WILMINGTON DEL CHEMICAL AND FIBER COMPANY ALSO IS REVIEWING BBDO'S CORPORATE ACCOUNT BILLINGS COULDN'T BE DETERMINED BUT ARE BELIEVED TO BE AT LEAST AS BIG AS LYCRA AND CORIAN THE CORPORATE REVIEW COMES AS SOMETHING OF A SURPRISE BBDO WON ATTENTION FOR THE CHEMICAL AND FIBER COMPANY WITH CORPORATE ADS FEATURING A BASKETBALL PLAYER WITH PROSTHETIC LEGS AND A SQUAD OF POLICE OFFICERS WHO SURVIVED GUNFIRE BECAUSE OF BULLETPROOF VESTS THE LYCRA SPOKESWOMAN DECLINED TO COMMENT ON DUPONT'S CORPORATE ADVERTISING PLANS REEBOK INTERNATIONAL SAID IT'S LOOKING FOR THREE LOCAL AGENCIES TO PRODUCE REGIONAL MARKETING AND AD CAMPAIGNS INSTEAD OF GIVING THAT ASSIGNMENT TO ITS NATIONAL AD AGENCY CHIAT/DAY DAVID ROPES REEBOK VICE PRESIDENT OF MARKETING SAID THE COMPANY ALREADY HAS IDENTIFIED SEVERAL EVENT PROMOTION AND ADVERTISING AGENCIES IN SAN FRANCISCO CHICAGO AND ATLANTA WHO ARE CONTENDING FOR THE ACCOUNTS EACH RANGING FROM 1 MILLION TO 3 MILLION A DECISION IS EXPECTED IN THE NEXT MONTH HE SAID THIS DOESN'T DETRACT OR TAKE AWAY FROM OUR NATIONAL ADVERTISING MR ROPES SAID THE LOCAL EFFORTS WON'T HAVE ANY EFFECT ON REEBOK'S ESTIMATED NATIONAL BILLINGS OF 73 MILLION WITH CHIAT/DAY HE SAID MR ROPES DENIED PUBLISHED SPECULATION THAT REEBOK RETAILERS WERE DISSATISFIED WITH PLANET REEBOK THE GLOBAL AD CAMPAIGN THAT CHIAT CREATED IN THE WAKE OF THE HIGHPROFILE ILLFATED OLYMPIC RIVALRY BETWEEN DAN O'BRIEN AND DAVE JOHNSON IT'S BEEN VERY WELLRECEIVED MR ROPES SAID AMEX THE AMERICAN STOCK EXCHANGE CONFIRMED IT IS REVIEWING ITS ESTIMATED 3 MILLION AD ACCOUNT CURRENTLY HANDLED BY THE NEW YORK SHOP DEVITO/VERDI AGENCIES UNDER CONSIDERATION INCLUDE AYER OMNICOM GROUP'S BBDO AND WPP GROUP'S OGILVY & MATHER A SPOKESMAN SAID THE INCUMBENT ALSO IS PARTICIPATING GREY GREY ADVERTISING POSTED SECONDQUARTER NET INCOME OF 58 MILLION OR 439 A SHARE UP 14 FROM 51 MILLION OR 403 A SHARE IN THE 1992 QUARTER THE NEW YORK AGENCY REPORTED QUARTERLY REVENUE OF 1432 MILLION UP 9 FROM 1319 MILLION IN THE PREVIOUS YEAR 9308100146 930810 POLITICS & POLICY WHETHER OR NOT THEY BENEFIT COMPANIES DECRY INSTABILITY IN TAX LAW AS A BARRIER TO PLANNING BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HEWLETTPACKARD CO MADE OUT PRETTY WELL IN THE TAX BILL THAT CLEARED CONGRESS LAST WEEK SO WHY DO THE COMPANY'S MANAGERS SOUND SO GROUCHY YOU FEEL LIKE YOU'RE ALWAYS BEING JERKED AROUND SAYS LARRY LANGDON DIRECTOR OF TAXES AND LOGISTICS AT THE COMPUTER MAKER JUST BECAUSE A PARTICULAR PROVISION IS WRITTEN INTO LAW THIS YEAR HE NOTES THERE IS NO ASSURANCE THAT IT WON'T BE REVERSED NEXT YEAR OR THE YEAR AFTER THROUGHOUT CORPORATE AMERICA THE LAMENT IS MUCH THE SAME THE INTERNAL REVENUE CODE CHANGES WITH MADDENING FREQUENCY MAKING IT HARD FOR COMPANIES TO MAP OUT INVESTMENT STRATEGIES IT MAKES LONGTERM FINANCIAL PLANNING VERY DIFFICULT SAYS BETHLEHEM STEEL CORP CHAIRMAN HANK BARNETTE THE CODE'S CAPRICIOUS NATURE CAN THROW A BIG MONKEY WRENCH INTO EVEN THE BESTLAID PLANS ADDS DANIEL BOYER DIRECTOR OF CORPORATE TAX PLANNING AT SEARS ROEBUCK & CO OVER THE PAST DECADE THE TAX CODE HAS HARDLY BEEN ALLOWED TO SIT STILL BEFORE THIS YEAR'S BILL THERE WAS MAJOR TAX LEGISLATION IN 1981 1982 1984 1986 1988 AND 1990 DOZENS OF OTHER BILLS ALSO HAVE AFFECTED PARTS OF THE CODE THE INVESTMENT TAX CREDIT WHICH PRESIDENT CLINTON PROPOSED BUT CONGRESS REJECTED HAS ITSELF BEEN IN AND OUT OF THE CODE HALF A DOZEN TIMES IN THE PAST 30 YEARS THE RESEARCH TAX CREDIT WHICH WAS EXTENDED ONLY TEMPORARILY AS PART OF THIS YEAR'S BILL IS CONSIDERED SO UNSTABLE THAT HEWLETTPACKARD DOESN'T EVEN TRY TO FIGURE IT INTO ITS LONGRANGE COST ANALYSES ANY MORE WHEN CONGRESS ENACTED THE TAX REFORM ACT OF 1986 WHICH WAS SUPPOSED TO STABILIZE AND SIMPLIFY THE CODE HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI CLAIMED THAT HE WAS GOING TO HANG UP A GONE FISHING SIGN BUT IN THE FIVE YEARS AFTER THAT BILL PASSED CONGRESS MADE SOME 5400 CHANGES TO THE TAX LAWS THROUGH 27 DIFFERENT PIECES OF LEGISLATION NO ONE EVEN PRETENDS THAT THIS YEAR'S BILL PRECLUDES FUTURE TINKERING THERE IS A UNIVERSAL SENSE THAT THIS THING IS OUT OF CONTROL SAYS FRED GOLDBERG A WASHINGTON TAX LAWYER AND FORMER COMMISSIONER OF THE INTERNAL REVENUE SERVICE OF COURSE THERE ARE TIMES WHEN A SECTION OF THE TAX CODE OUTLIVES ITS USEFULNESS OR BECOMES SO BADLY ABUSED THAT IT CLEARLY NEEDS TO BE MODIFIED AND COMPANIES LIKE HEWLETTPACKARD OFTEN ADD TO THE CONFUSION THEY COMPLAIN ABOUT ONCE A TAX BILL IS IN PROGRESS THEY LOBBY FEVERISHLY FOR SPECIAL EXEMPTIONS HOWEVER FOR MANY BUSINESSES THE ISSUE IS NO LONGER WHETHER A CERTAIN SECTION OF THE CODE IS GOOD OR BAD FOR THEIR BOTTOM LINES THEY SAY THEY COULD LEARN TO LIVE WITH NEARLY ANYTHING SO LONG AS THE RULES DON'T KEEP CHANGING ANY PENDING TAX BILL CARRIES SHORTTERM COSTS AS CERTAIN BUSINESSES WILL INVARIABLY PUT SPENDING AND HIRING DECISIONS ON HOLD UNTIL THEY SEE HOW THE CONGRESSIONAL DEBATE SHAKES OUT BUT PASSING TAX LEGISLATION HAS ENORMOUS COSTS AS WELL VIRTUALLY EVERY CHANGE IN THE CODE IS FOLLOWED BY NEW REGULATIONS THE REGULATIONS LEAD TO LITIGATION AND THE LAWSUITS CAN THEN SET OFF NEW REGULATIONS OR BRAND NEW LAWS IN THE 1960S COMMERCE CLEARINGHOUSE A PUBLISHER OF GOVERNMENT DOCUMENTS ISSUED THE TAX CODE AND RELATED RULES IN ONE VOLUME EACH TODAY THE CODE HAS SWELLED TO TWO THICKER VOLUMES AND THE REGULATIONS ARE ENCASED IN A SIXVOLUME SET TO DEAL WITH IT ALL THERE'S A TAX INDUSTRY OF ACCOUNTANTS PROFESSIONAL PREPARERS LAWYERS AND LOBBYISTS THAT WASHINGTON ATTORNEY ERNEST CHRISTIAN FIGURES BRINGS IN MORE REVENUE THAN THE STEEL AND AUTO INDUSTRIES COMBINED TO MANY IT'S A COSTLY DIVERSION OF TALENT THESE ARE THE BEST AND THE BRIGHTEST THAT WE HAVE ADMINISTERING THE CORPORATE TAX SYSTEM IN THE US SAYS GARY HUFBAUER OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS IT'S AN APPALLING WASTE IN OTHER NATIONS HE SAYS PEOPLE WITH SUCH TALENT DO MORE PRODUCTIVE WORK CREATING PRODUCTS AND SERVICES NOT JUST LOOPHOLES HEWLETTPACKARD IS TYPICAL OF LARGE US CORPORATIONS WITH A TAX DEPARTMENT OF 50 EMPLOYEES THE IRS WHICH HAS A TEAM OF NINE AUDITORS STATIONED FULLTIME AT THE COMPANY'S PALO ALTO CALIF HEADQUARTERS IS STILL REVIEWING HP'S 1984 1985 AND 1986 RETURNS HP'S MR LANGDON CHAFES WHEN HE COMPARES THIS TO OTHER COUNTRIES ESPECIALLY JAPAN A COUPLE OF YEARS AGO HE SAYS HE VISITED A JAPANESE COMPANY THREE TIMES THE SIZE OF HP WITH ONLY FIVE PEOPLE IN ITS TAX DEPARTMENT IT DOES ITS TAXES IN JUST TWO WEEKS EVEN A SIMPLE CHANGE IN THE CORPORATE INCOME TAX RATE CAN CAUSE HEADACHES SEVERAL WEEKS AGO HP SUED THE IRS IN TAX COURT IN A DISPUTE OVER WHETHER THE COMPANY SHOULD RECOGNIZE INCOME WHEN A PRODUCT LEAVES THE LOADING DOCK OR WHEN IT'S RECEIVED BY THE CUSTOMER BECAUSE LOWER TAX RATES TOOK EFFECT IN 1987 HP WANTS PRODUCTS THAT WERE SHIPPED DURING THE LAST FEW DAYS OF 1986 BUT RECEIVED THE NEXT YEAR TO BE SUBJECT TO THE REDUCED LEVY ABOUT 15 MILLION IS AT STAKE YET NOTHING SHAKES UP A BUSINESS LIKE A HUGE TAX BILL WHEN PRESIDENT CLINTON UNVEILED HIS TAX PACKAGE IN FEBRUARY HP'S MR LANGDON PORED OVER THE PLAN AND FOUND TWO PROPOSED CHANGES THAT TOGETHER COULD COST THE COMPANY MORE THAN 100 MILLION A YEAR THE PARING OF A TAX CREDIT FOR COMPANIES WITH OPERATIONS IN PUERTO RICO AND A LIMITING OF COMPANIES' ABILITY TO DEFER FROM US TAXATION THE INCOME THEY EARN OVERSEAS A POTENTIAL GUTTING OF THE PUERTO RICAN CREDIT WAS PARTICULARLY PROBLEMATIC FOR HP BECAUSE THE COMPANY HAD JUST DECIDED TO START UP A NEW ASSEMBLY LINE THERE THE WHOLE STRATEGY DARN NEAR JUST COLLAPSED ON US SAYS RON FOSTER GROUP CONTROLLER FOR COMPUTER MANUFACTURING HP REACTED TO THE CLINTON PACKAGE AS ANY REDBLOODED AMERICAN COMPANY WOULD IT STEPPED UP ITS LOBBYING IT FORGED AN INDUSTRY COALITION TO FIGHT THE DEFERRAL PROVISION AND HP'S PRESIDENT LEWIS PLATT WARNED SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY THAT CUTTING THE PUERTO RICAN CREDIT TOO SHARPLY COULD FORCE THE COMPANY TO MOVE ITS OPERATIONS TO EUROPE IN THE END THE PRESSURE PAID OFF AFTER A PIVOTAL MEETING BETWEEN MR PLATT AND LES SAMUELS ASSISTANT TREASURY SECRETARY FOR TAX POLICY CONGRESS TEMPERED THE DEFERRAL PLAN LAWMAKERS ALSO CUT THE PUERTO RICAN CREDIT BY A RELATIVELY MODEST AMOUNT BUT THE UNCERTAINTY DOESN'T END HP OFFICIALS FIGURE THAT BOTH DEFERRAL AND THE PUERTO RICAN CREDIT SEEM SURE TO BE REVISITED BY A DEFICITCONSCIOUS CONGRESS PERHAPS NOT TOO FAR DOWN THE ROAD WE TALK TO OUR TAX ATTORNEYS A LOT SAYS LARRY CHANG THE CONTROLLER FOR HP'S PERSONAL INFORMATION PRODUCTION GROUP BUT THEY'RE CAUTIOUS ABOUT HOW MUCH ADVICE THEY GIVE US BECAUSE THEY KNOW IT'S A MOVING TARGET 9308100145 930810 ECONOMY AUTO MARKET BLOSSOMS IN LATIN AMERICA RECORD SALES IN REGION ARE A BOON TO BIG CAR MAKERS THIS ARTICLE WAS PREPARED BY THOMAS KAMM IN RIO DE JANEIRO AND ROBERT L SIMISON IN DETROIT TO UNDERSTAND ONE REASON FOR SMILES IN DETROIT THIS YEAR TAKE A STROLL THROUGH THE MESBLA VEICULOS GENERAL MOTORS DISTRIBUTORSHIP IN DOWNTOWN RIO DE JANEIRO AT ONE END OF THE VAST SHOWROOM JOSE AUGUSTO MOREIRA IS BUYING NOT ONE BUT TWO OMEGA SEDANS ONE FOR HIMSELF AND ONE FOR HIS DRILLINGEQUIPMENT COMPANY MEANWHILE IN A CUBICLE IN THE BACK ANTONIO CARVALHO A PROFESSOR OF BIOPHYSICS IS SIGNING A 14000 CHECK FOR A BRANDNEW CHEVROLET MONZA SEDAN IT'S THE RIGHT TIME TO BUY MR CARVALHO SAYS A LOT OF LATIN AMERICANS SEEM TO AGREE FROM CARACAS TO BUENOS AIRES AUTO MAKERS AND IMPORTERS ARE SELLING RECORD NUMBERS OF CARS AND LIGHT TRUCKS THANKS TO A COMBINATION OF ECONOMIC RECOVERY TRADE LIBERALIZATION INDUSTRIAL GLOBALIZATION LOWER PRICES AND THE RESUMPTION OF CREDIT FOR THE FIRST HALF OF 1993 TOTAL VEHICLE SALES ACROSS LATIN AMERICA SOARED 32 TO A RECORD 1003000 UNITS ACCORDING TO GENERAL MOTORS CORP SALES WERE UP 21 IN ARGENTINA 48 IN BRAZIL AND 175 IN COLOMBIA GM PREDICTS THAT SALES FOR THE YEAR WILL SHATTER THE 1980 RECORD OF 24 MILLION UNITS MARKING THE SIXTH STRAIGHT YEAR OF INCREASE TRUE THE MUCH BIGGER NORTH AMERICA AND WESTERN EUROPE MARKETS ROUTINELY RACK UP THAT MANY SALES IN TWO MONTHS BUT LATIN AMERICA IS PROVIDING SPECTACULAR PROFIT INCREASES JUST WHEN GM FORD MOTOR CO VOLKSWAGEN AG AND FIAT SPA THE LEADING NORTHERN HEMISPHERE PLAYERS THERE NEED THEM EUROPE IS MIRED IN ITS DEEPEST AUTO RECESSION IN YEARS AND THE NORTH AMERICAN MARKET IS RECOVERING ONLY MODERATELY LATIN AMERICA IS ONE OF THE FEW BRIGHT SPOTS IN GM'S WORLDWIDE AUTO BUSINESS ITS NORTH AMERICAN CAR UNIT IS STILL LOSING MONEY AND EARNINGS IN EUROPE ARE DOWN SIGNIFICANTLY SO IT WAS LATIN AMERICA THAT ACCOUNTED FOR A 30 GAIN TO 368 MILLION IN SECONDQUARTER PROFIT FROM OVERSEAS AUTO OPERATIONS GM DECLINES TO DISCLOSE ITS INTERIM PROFIT RESULTS BY REGION FORD IS EQUALLY PLEASED WITH ITS LATIN AMERICAN RESULTS BRAZIL IS SOLD OUT TO THE WALLS DECLARES ALEXANDER J TROTMAN PRESIDENT OF FORD'S WORLDWIDE AUTO OPERATIONS FORD OPERATES IN BRAZIL AND ARGENTINA THROUGH AUTOLATINA A JOINT VENTURE IN WHICH VW HOLDS 51 AND FORD 49 AND INDEPENDENTLY ELSEWHERE THE COMPANY SAYS SECONDQUARTER EARNINGS IN LATIN AMERICA INCLUDING MEXICO MORE THAN DOUBLED TO 118 MILLION WHAT SET OFF THE LATIN BOOM THE CIRCUMSTANCES VARY BY MARKET BUT IN THE VIEW OF DANIEL J CICCONE GM'S CHIEF OF PRODUCT PLANNING AND MARKETING IN LATIN AMERICA ONE COMMON SEMINAL EVENT WAS THE FALL OF THE BERLIN WALL IN 1989 AS FAR REMOVED AS THAT MAY SEEM IT TRIGGERED THE OPENING OF EASTERN EUROPE'S LONGCLOISTERED HEAVILY PROTECTED ECONOMIES AND OPENED A LOT OF EYES IN LATIN AMERICA WHEN THEY SAW EASTERN EUROPE OPENING TO CAPITALISM WITH INVESTMENT POURING IN A LOT OF THESE LATIN AMERICAN GOVERNMENTS DECIDED THAT IF THEY DIDN'T OPEN THEIR ECONOMIES THEY WOULD BE LEFT BEHIND FOR ANOTHER DECADE MR CICCONE SAYS THE ECONOMIC RESTRUCTURINGS THAT HAVE FOLLOWED HE ADDS UNLEASHED TREMENDOUS PENTUP DEMAND FOR VEHICLES LATIN AMERICA DIDN'T PARTICIPATE WITH EUROPE AND NORTH AMERICA IN THE 1980S BOOM CONSIDER ARGENTINA WHERE THE BOOM HAS BEEN SPECTACULAR JUST THREE YEARS AGO WITH ARGENTINA MIRED IN HYPERINFLATION AND ECONOMIC STAGNATION SOME WONDERED WHETHER THE LOCAL AUTO INDUSTRY HAD A FUTURE COMBINED VEHICLE PRODUCTION IN 1990 BY SEVEL WHICH MAKES FIAT AND PEUGEOT CARS UNDER LICENSE RENAULT AND AUTOLATINA TOTALED JUST 99639 UNITS IN A COUNTRY OF 33 MILLION PEOPLE BUT IN APRIL 1991 ECONOMY MINISTER DOMINGO CAVALLO IMPOSED AN ECONOMIC STABILIZATION PLAN THAT PEGGED THE PESO TO THE DOLLAR AND SEVERELY CURTAILED THE INFLATIONARY PRINTING OF MONEY IN ADDITION AUTO MAKERS AGREED TO LOWER PRICES 35 IN RETURN FOR LOWER TAXES AND A CAP ON IMPORTS THE INDUSTRY TOOK OFF WITH PRODUCTION RISING 40 IN 1991 NEARLY DOUBLING IN 1992 AND RISING 35 SO FAR THIS YEAR IN COLOMBIA AND VENEZUELA TRADE LIBERALIZATION HAS CONTRIBUTED TO THE CAR BOOM LIKE MUCH OF THE REGION BOTH COUNTRIES TIGHTLY RESTRICTED IMPORTS IN THE 1970S AND 1980S BUT BY THE TURN OF THIS DECADE BOTH DECIDED TO CHANGE THAT IN THE FIGHT AGAINST INFLATION AND INDUSTRIAL INEFFICIENCY BOTH COUNTRIES CUT THE TOP IMPORT DUTIES ON CARS TO 40 FROM 80 IN VENEZUELA AND 100 IN COLOMBIA WHICH TRANSLATED INTO LOWER PRICES AND MUCH HIGHER SALES IN VENEZUELA SALES SURGED TO 130867 UNITS IN 1992 FROM 74925 A YEAR EARLIER AND DESPITE A FALTERING ECONOMY RELATED TO POLITICAL TURMOIL THE INDUSTRY IS ON TRACK TO NEARLY EQUAL LAST YEAR'S PERFORMANCE IN COLOMBIA SALES SURGED 44 LAST YEAR TO 69871 UNITS A FIGURE THAT HAS ALREADY BEEN EXCEEDED IN THE FIRST HALF OF THIS YEAR WITH SALES AFTER SIX MONTHS AT 71674 SAYS WALTER WIELAND THE PRESIDENT OF GM'S LOCAL UNIT TOTAL UNIT SALES THIS YEAR SHOULD REACH 115000 ALSO HELPING IN COLOMBIA SAYS GM'S MR CICCONE HAS BEEN AN AGREEMENT PROVIDING FOR THE DUTYFREE SHIPMENT WITHIN VENEZUELA COLOMBIA ECUADOR PERU AND BOLIVIA OF LOCALLY PRODUCED VEHICLES THIS HAS ALLOWED MANUFACTURERS TO BROADEN THEIR PRODUCT OFFERINGS WITHIN EACH MARKET AND THEN THERE'S BRAZIL A CASE APART INFLATION IS RUNNING 30 A MONTH WE'RE RAISING PRICES ON VEHICLES ONCE OR TWICE A MONTH THE CURRENCY IS CONSTANTLY BEING DEVALUED AND THE ECONOMY IS UNSETTLED BUT THE INDUSTRY IS RUNNING AT AN ALLTIME PEAK SAYS W WAYNE BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL AUTO OPERATIONS FOR THE FIRST HALF SALES IN BRAZIL TOTALED 491753 UNITS UP 48 FROM A YEAR EARLIER VEHICLE PRODUCTION IN BRAZIL IS EXPECTED TO HIT A RECORD 12 MILLION UNITS THIS YEAR INDUSTRY ANALYSTS SAY ONE EXPLANATION HAS TO DO PRECISELY WITH BRAZIL'S TROUBLES IN A COUNTRY WHERE THE CURRENCY LOSES VALUE DAILY IT'S BETTER TO HOLD A TANGIBLE ASSET SUCH AS A CAR WHOSE VALUE RISES WITH INFLATION SOME PEOPLE IN BRAZIL BUY CARS AS INVESTMENTS THEN RESELL THEM UNUSED A FEW MONTHS LATER ALSO THERE'S A MIXTURE OF THE ELEMENTS THAT ARE FUELING THE AUTO BOOM ELSEWHERE INCLUDING A FREETRADE PACT WITH ARGENTINA THAT BROUGHT CAR PRICES DOWN AND A GRADUAL REDUCTION OF IMPORT DUTIES TO 35 FROM 85 AND THE LOWER END OF THE MARKET WHICH HAD BEEN MORE OR LESS ABANDONED HAS PARTICULARLY BENEFITED FROM LOWER CAR PRICES AND MORE COMPETITION MANY SOCALLED POPULAR CARS NOFRILLS AUTOS WITH SMALL ENGINES HAVE APPEARED UNLEASHING A HUGE PENTUP DEMAND THESE FACTORS EXECUTIVES SAY COULD INDICATE THAT BRAZIL'S AUTO INDUSTRY GROWTH IS MORE THAN A BUBBLE THERE IS ONLY ONE CAR IN BRAZIL FOR EVERY 117 INHABITANTS COMPARED WITH ARGENTINA'S ONE CAR FOR EVERY 56 PEOPLE SAYS LUIZ ADELAR SCHEUER PRESIDENT OF THE NATIONAL ASSOCIATION OF AUTOMAKERS A TRADE ASSOCIATION IN BRAZIL TO REACH THE SAME RATIO AS ARGENTINA WE HAVE TO DOUBLE THE COUNTRY'S FLEET HE SAYS SO I THINK THERE'S A CHANCE THIS IS JUST THE START OF OUR GROWTH 9308100142 930810 MONDAY'S MARKETS DEFICIT VOTE SPURS BONDS AND STOCKS YIELD ON 30YEAR ISSUE IS AT 16YEAR LOW DJIA HITS RECORD BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL FRIDAY NIGHT'S PASSAGE OF A DEFICITREDUCTION PLAN IGNITED RALLIES IN THE STOCK AND BOND MARKETS LEAVING SOME MEASURES OF SHARE PRICES AT RECORD HIGHS AND LONGTERM INTEREST RATES AT A 16YEAR LOW THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 1565 TO A RECORD 357608 STANDARD & POOR'S 500STOCK INDEX ROSE 204 TO 45072 STILL SHORT OF ITS RECORD 45633 BUT THE NASDAQ COMPOSITE INDEX EDGED UP 041 TO A RECORD 71849 ITS FOURTH CONSECUTIVE HIGH ALTHOUGH TRADERS BID UP BOND PRICES LAST WEEK IN ANTICIPATION OF CONGRESSIONAL APPROVAL OF THE PACKAGE AIMED AT CUTTING THE BUDGET DEFICIT ANALYSTS SAID SHEER RELIEF THAT THE PROCESS WAS OVER BOOSTED PRICES FURTHER SOME INVESTORS SAID THE DEFICITREDUCTION PLAN WHILE LESS THAN MANY EXPECTED NEVERTHELESS REPRESENTS AN ATTEMPT TO GRAPPLE WITH THE BURGEONING DEFICIT APPROVAL OF THE PACKAGE IS VIEWED AS CONFIRMATION THAT LONGTERM RATES WILL CONTINUE TO TREND DOWN SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS BOND PRICES CONTINUE TO DRAW SUPPORT FROM EXPECTATIONS THAT ECONOMIC GROWTH WILL REMAIN SLUGGISH AND INFLATION MODEST BOND INVESTORS ALSO WERE ATTRACTED TO LONGTERM TREASURY ISSUES BECAUSE THIS WEEK'S AUCTION OF NEW 30YEAR DEBT MARKS THE END OF QUARTERLY SALES OF 30YEAR SECURITIES HENCEFORTH THE TREASURY INTENDS TO SELL NEW 30YEAR BONDS ONLY TWICE A YEAR THE SCENARIO ADDED UP TO A ROBUST RALLY WITH THE TREASURY'S BENCHMARK 30YEAR ISSUE SOARING 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT THE YIELD FELL BELOW THE PSYCHOLOGICALLY IMPORTANT 65 LEVEL TO 647 THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 BUT MR SOHN CAUTIONED THAT THE BOND RALLY MAY BE A SHORTTERM PHENOMENON HE NOTED THAT LATER THIS YEAR THE SENATE WILL TURN ITS ATTENTION TO PRESIDENT CLINTON'S HEALTHCARE PROPOSALS THE DEBATE WILL BE ACRIMONIOUS AND IT MAY NOT BE PLEASING TO THE MARKET HE SAID THE EUPHORIA OVER THE DEFICITREDUCTION PROGRAM WILL CERTAINLY DIMINISH NONETHELESS MR SOHN THINKS LONGTERM RATES WILL APPROACH 6 IN THE MONTHS AHEAD THANKS PARTLY TO FALLING RATES IN EUROPE A STRENGTHENING DOLLAR AND GLOBAL DISINFLATION HE BELIEVES THE MOVE WILL BE NEEDED TO OFFSET A POTENTIAL ECONOMIC DRAG FROM THE DEFICITREDUCTION PACKAGE AND HIGHER TAXES WE NEED TO BRING RATES DOWN TOWARD 6 TO SUSTAIN EVEN MODEST GROWTH MR SOHN SAID WITHOUT THAT WE MAY HAVE A RECESSION IN 1994 HE SEES STOCK PRICES CONTINUING TO CLIMB THROUGH THE REST OF THE SUMMER THIS RALLY HAS FURTHER TO GO HE SAID THE MARKET IN NOW DISCOUNTING A PERIOD OF LOW INFLATION LOW INTEREST RATES AND STEADY THOUGH UNSPECTACULAR EARNINGS GAINS STRONG GAINS IN AIRLINE AND RAIL STOCKS BOOSTED THE DOW JONES TRANSPORTATION AVERAGE 1432 TO 161766 DESPITE A RISE IN OIL PRICES ANALYSTS SAID IMPROVING TRAFFIC AT AIRLINES AND RAILROADS MORE THAN OFFSET THE OILPRICE INCREASE GOLD PRICES REBOUNDED YESTERDAY FROM A SELLOFF LAST WEEK GIVING A BOOST TO GOLD STOCKS ANALYSTS SAID THE MOVE WASN'T SPARKED BY EXPECTATIONS OF RISING INFLATION BUT RATHER FROM A LONGTERM TREND TOWARD GREATER DEMAND FOR THE METAL WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 010 TO 10966 IN MAJOR MARKET ACTION STOCK PRICES ADVANCED VOLUME TOTALED 2317 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1210 ISSUES ROSE AND 804 FELL BOND PRICES RALLIED THE TREASURY'S 10YEAR ISSUE GAINED 1/4 POINT OR 125 FOR EACH 1000 FACE AMOUNT TO YIELD 580 THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16975 MARKS AND 10489 YEN COMPARED WITH 16965 MARKS AND 10441 YEN FRIDAY 9308100141 930810 CHARTER MEDICAL SELLS SURGICAL HOSPITALS IN MOVE TO FOCUS ON PSYCHIATRIC BUSINESS BY HELENE COOPER STAFF REPORTER OF THE WALL STREET JOURNAL CHARTER MEDICAL CORP MOVING TO FOCUS ON ITS CORE PSYCHIATRICHOSPITAL BUSINESS SAID IT AGREED TO SELL ITS 10 MEDICALSURGICAL HOSPITALS TO QUORUM HEALTH GROUP FOR 340 MILLION THE SALE WILL ALLOW CHARTER MEDICAL OF MACON GA TO CONCENTRATE ON ITS 79 PSYCHIATRIC HOSPITALS AMID AN ENVIRONMENT OF INCREASING COST PRESSURE WHILE SLASHING THE COMPANY'S DEBT LOAD QUORUM HEALTH BASED IN NASHVILLE TENN IS A CLOSELY HELD COMPANY THAT OWNS AND OPERATES MORE THAN 200 ACUTECARE HOSPITALS INDUSTRY ANALYSTS PRAISED THE SALE SAYING IT WAS A BIG STEP TOWARD STABILIZING CHARTER MEDICAL WHICH HAS TRAVELED A ROCKY FIVEYEAR COURSE THAT INCLUDED A BANKRUPTCYLAW FILING THE PSYCHIATRIC INDUSTRY IS TOUGH BUT THE CARE IS STILL GOING TO BE NEEDED OUT THERE SAID GEORGE PILLARI PRESIDENT OF HCIA A HEALTHCARE CONSULTING CONCERN IN BALTIMORE A COMPANY LIKE CHARTER WILL BE BETTER ABLE TO ADAPT IF IT'S SMALLER AND MORE FOCUSED FOR THE 10 HOSPITALS CHARTER MEDICAL SAID IT WILL BE PAID 335 MILLION IN CASH AND A 5 MILLION SEVENYEAR NOTE PROCEEDS WILL BE USED TO CUT THE COMPANY'S 784 MILLION IN DEBT A CHARTER SPOKESMAN SAID THE DEBT LEVEL WHICH EXCEEDED 1 BILLION WHEN CHARTER EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS LAST YEAR SHOULD FALL TO ABOUT 430 MILLION AFTER THE SALE INCLUDED IN THE TRANSACTION IS ONE OF CHARTER'S MORE PROFITABLE HOSPITALS DESERT SPRINGS HOSPITAL IN LAS VEGAS BUT ANALYSTS SAID DEBT REDUCTION IS CURRENTLY MORE IMPORTANT TO CHARTER THAN THE CONTINUING PROFITS FROM DESERT SPRINGS CHARTER'S SHARPENED FOCUS ON THE PSYCHIATRICHOSPITAL BUSINESS COMES AT A TIME WHEN THE INDUSTRY HAS BEEN AFFECTED BY DECLINING REIMBURSEMENTS FROM INSURANCE COMPANIES AND COMPLAINTS OF EXCESSIVE CHARGES FOR MENTALHEALTH CARE THERE WILL BE A CONSOLIDATION AND SHAKEOUT IN THE INDUSTRY SAID E MAC CRAWFORD CHARTER'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WE INTEND TO BE A MAJOR FORCE AFTER THAT SHAKEOUT TO THAT END CHARTER HAS BEGUN REVISING SERVICES AT ITS REMAINING HOSPITALS WITH AVERAGE LENGTHS OF STAY AT PSYCHIATRIC HOSPITALS FALLING IN RECENT YEARS CHARTER IS EXPANDING ITS MENTALHEALTH OFFERINGS TO INCLUDE MORE OUTPATIENT AND PARTIAL HOSPITALIZATION ARRANGEMENTS SUCH PROGRAMS ARE USUALLY CHEAPER THAN INPATIENT TREATMENT AND THEREFORE MORE PALATABLE TO INSURANCE COMPANIES IN PREPARATION FOR THE FEDERAL GOVERNMENT'S HEALTHCARE REFORM CHARTER WILL ALSO LOOK MARKET BY MARKET AT LINKING WITH REGIONAL HEALTHCARE SYSTEMS TO OFFER CARE MR CRAWFORD SAID I THINK BEING PART OF OVERALL COMMUNITY NETWORKS IS KEY HE SAID THE HOSPITAL SALE FOLLOWS A TUMULTUOUS FIVE YEARS AT CHARTER TAKEN PRIVATE IN A MANAGEMENTLED BUYOUT IN 1988 THE COMPANY STRUGGLED WITH 16 BILLION IN DEBT JUST AS INSURERS AND OTHER MEDICAL PAYERS STARTED TO CRACK DOWN ON PAYMENT IN 1991 CHARTER BEGAN A FINANCIAL RESTRUCTURING AND EVENTUALLY ENTERED BANKRUPTCY COURT LAST YEAR THE COMPANY WENT PUBLIC AGAIN THIS MARCH CHARTER'S BOARD REPLACED THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM A FICKLING JR THE COMPANY'S FOUNDER THE DEPARTURE MAY HAVE BEEN PROMPTED BY WHAT ANALYSTS DESCRIBED AS MR FICKLING'S SLOW RESPONSE IN DEALING WITH A SOFT PSYCHIATRICHOSPITAL MARKET MR CRAWFORD THEN PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED CHIEF EXECUTIVE HE HAD BEEN EXPECTED TO MOVE QUICKLY TO JETTISON THE ACUTECARE OPERATIONS FOUR DAYS AGO CHARTER SAYING IT WAS COMPLETING THE TRANSITION TO NEW LEADERSHIP NAMED MR CRAWFORD TO THE ADDED POST OF CHAIRMAN 9308100140 930810 CALIFORNIA DREAMS ASIAN MARKETS BY MARTIN D BERESFORD JAPANESE DIRECT INVESTMENT IN CALIFORNIA WHICH ACCOUNTS FOR NEARLY HALF OF ALL FOREIGN DIRECT INVESTMENT IN THE STATE SLUMPED 30 TO 26 BILLION IN 1992 IT WAS THE THIRD CONSECUTIVE ANNUAL DECLINE SINCE PEAKING AT 7 BILLION IN 1989 ONE SIGNIFICANT REASON FOR THIS DECLINE IS THAT A GROWING SHARE OF JAPAN'S GLOBAL FOREIGN DIRECT INVESTMENT IS SHIFTING TO EAST AND SOUTHEAST ASIA WHERE RAPID ECONOMIC GROWTH DRIVEN BY SOME OF THE WORLD'S HIGHEST SAVINGS AND CAPITALFORMATION RATES OFFERS BETTER RETURNS THAN MORE MATURE MARKETS IN AMERICA EUROPE OR EVEN JAPAN THE SHIFT HIGHLIGHTS MAJOR BUSINESS OPPORTUNITIES THAT CALIFORNIA COMPANIES IGNORE AT THEIR PERIL THERE ARE OTHER REASONS FOR THE DOWNTURN IN JAPANESE DIRECT INVESTMENT IN CALIFORNIA FIRST THE DOWNTURN IS PART OF A WORLDWIDE SLOWDOWN IN JAPANESE FOREIGN INVESTMENT BECAUSE OF JAPAN'S ECONOMIC DOLDRUMS IN 1992 JAPANESE COMPANIES REDUCED THEIR TOTAL CAPITAL EXPENDITURE 6 TO 670 BILLION 95 OF WHICH WENT INTO DOMESTIC INVESTMENT OVERSEAS JAPANESE COMPANIES CUT THEIR DIRECT INVESTMENT 27 TO 31 BILLION CONTINUING A THREEYEAR SLIDE FROM THE 1989 PEAK OF 69 BILLION SECOND CALIFORNIA IS GRADUALLY LOSING ITS SHARE OF JAPANESE INVESTMENT TO OTHER AMERICAN STATES ONCE A BEACHHEAD FOR JAPANESE INVESTORS IN THE US CALIFORNIA HAS SEEN ITS SHARE OF NEW JAPANESE AFFILIATES IN THE US WHICH PEAKED AT 42 IN 1975 FALL TO 28 BY 1990 AND 23 IN 199192 IN THE MANUFACTURING SECTOR SOME JAPANESE COMPANIES HAVE CANCELED OR DEFERRED PLANS FOR NEW INVESTMENTS IN CALIFORNIA OTHERS SUCH AS HITACHI AND FUJITSU HAVE CLOSED OR DOWNSIZED CALIFORNIA PLANTS AND TRANSFERRED PRODUCTION TO OTHER STATES OREGON AND WASHINGTON FOR EXAMPLE HAVE DOUBLED THEIR SHARE OF JAPANESE DIRECT INVESTMENT SINCE 1989 BUT THE BIGGEST REASON FOR JAPAN'S SHIFT AWAY FROM CALIFORNIA IS ITS EMERGING PREFERENCE FOR FASTERGROWING ASIAN ECONOMIES REVERSING THE PATTERN OF THE 1980S HISTORICALLY A MAJOR OBJECTIVE OF JAPANESE DIRECT INVESTMENT WAS TO SECURE NATURAL RESOURCES AND LOWCOST OFFSHORE LABOR LARGELY IN ASIA BUT IN THE 1980S JAPANESE CORPORATIONS CHANGED THEIR INVESTMENT STRATEGY AND BEGAN TARGETING THE US AND EUROPE THE MAIN REASON TO SIDESTEP RISING AMERICAN AND EUROPEAN PROTECTIONISM BETWEEN 1980 AND 1989 AMERICA'S SHARE OF JAPAN'S CUMULATIVE FOREIGN DIRECT INVESTMENT NEARLY DOUBLED TO 42 FROM 22 EUROPE'S SHARE MORE THAN DOUBLED TO 19 FROM 9 NOW HOWEVER JAPANESE COMPANIES ARE SWITCHING THEIR ATTENTION BACK TO ASIA SINCE 1989 ASIA'S SHARE OF NEW JAPANESE INVESTMENT FLOWS HAS JUMPED TO 19 FROM 12 WHILE AMERICA'S SHARE SLIPPED TO 40 FROM 48 TO BE SURE JAPAN'S RETURN TO ASIA AFFECTS CALIFORNIA'S ALREADY SLUMPING ECONOMY MORE THAN 1200 JAPANESE AFFILIATES ACCOUNTING FOR HALF OF ALL FOREIGN DIRECT INVESTMENT IN CALIFORNIA PROVIDE JOBS FOR 130000 PEOPLE IN THE MANUFACTURING SECTOR WHICH ACCOUNTS FOR 70 OF ALL JAPANESE INVESTMENTS IN CALIFORNIA JAPANESE AFFILIATES ARE STEADILY SHIFTING AWAY FROM EXPORT MARKETING AND LOCAL ASSEMBLY IN SOCALLED SCREWDRIVER PLANTS INSTEAD THEY'RE LOOKING TOWARD MORE INTEGRATED LOCAL PRODUCTION OFTEN WITH SUBSTANTIAL LOCAL VALUE ADDED MORE THAN 40 OF JAPANESE MANUFACTURING AFFILIATES ESTABLISHED IN CALIFORNIA SINCE 1990 DO AT LEAST SOME LOCAL PRODUCTION COMPARED WITH ONLY 15 IN 1980 MANY ALSO DO SUBSTANTIAL RESEARCH AND DEVELOPMENT IN CALIFORNIA AND NEARLY 30 EXPORT PART OF THEIR US OUTPUT TO JAPAN OR THIRD COUNTRIES THUS CONTRIBUTING TO A POSITIVE US TRADE BALANCE MOREOVER ONLY 15 OF JAPANESE INVESTMENTS IN CALIFORNIA SINCE 1991 WERE ACQUISITIONS OF EXISTING BUSINESSES MOST WERE WHOLLY OWNED STARTUP OPERATIONS BRINGING EMPLOYMENT CAPITAL TECHNOLOGY AND BUSINESS OPPORTUNITIES FOR LOCAL COMPANIES CLEARLY A SUSTAINED EXODUS OF JAPANESE DIRECT INVESTMENT WOULD BE A SIGNIFICANT LOSS FOR THE CALIFORNIA ECONOMY BUT THE SPECTACULAR GROWTH IN ASIAN MARKETS THAT IS ATTRACTING JAPANESE DIRECT INVESTMENT ILLUSTRATES A MAJOR OPPORTUNITY FOR AMERICAN BUSINESSES CALIFORNIA COMPANIES ARE ESPECIALLY WELLEQUIPPED TO COMPETE IN MANY ASIAN MARKETS INCLUDING INDUSTRIAL ELECTRONICS TELECOMMUNICATIONS AND CONSUMER GOODS AND SERVICES ASIAN CONSUMER MARKETS IN PARTICULAR OFFER SPECTACULAR OPPORTUNITIES FOR GROWTH CONSIDER MUCH OF THE GROWTH IN ASIAN CONSUMPTION WILL BE IN DISCRETIONARY PRODUCTS AND SERVICES LIKE ENTERTAINMENT HOME AND LEISURE CONVENIENCE FOODS RESTAURANTS CONSUMER FINANCIAL SERVICES FITNESS AND HEALTH CARE COMMUNICATIONS AND FASHION IN THESE SECTORS CALIFORNIA BUSINESSES HAVE A WEALTH OF KNOWHOW KNOWHOW THAT HAS BEEN HONED IN ARGUABLY THE WORLD'S MOST ADVANCED CONSUMER MARKET RISING ASIAN CONSUMPTION ALSO MEANS GROWTH OPPORTUNITIES FOR SERVICE INDUSTRIES LIKE MEDIA ADVERTISING AND RETAILING WHERE US BUSINESSES ARE AMONG THE WORLD'S MOST COMPETITIVE ASIA NOW HAS MORE THAN 240 MILLION HOUSEHOLDS WITH TELEVISIONS AN INCREASE OF 70 SINCE 1985 IN EAST ASIA TOTAL ADVERTISING BILLINGS HAVE TRIPLED SINCE 1985 RISING TO 08 FROM 05 OF THE REGION'S GROSS DOMESTIC PRODUCT EVEN CHINA'S FLEDGLING ADVERTISING INDUSTRY GREW 40 IN 1992 REACHING 013 OF THE NATION'S GROSS NATIONAL PRODUCT A RETAILING REVOLUTION IS ALSO TAKING PLACE ACROSS ASIA SOPHISTICATED MASS MERCHANDISERS AND CONVENIENCE STORES ARE RAPIDLY DISPLACING OLDSTYLE MOMANDPOP STORES WITH THE CHANGES COME OPPORTUNITIES FOR US RETAILERS INDEED CALIFORNIA BUSINESSES AS DIVERSE AS LEVI STRAUSS APPLE COMPUTER THE CLING PEACH ADVISORY BOARD WILLIAMS SONOMA AND APPLIED MATERIALS HAVE SUCCEEDED IN JAPAN AND OTHER ASIAN NATIONS CAPTURING SIGNIFICANT MARKETS OR MARKET SHARE THE TIME IS RIPE TO FURTHER EXPAND THE CALIFORNIA DREAM IN THE REGION MR BERESFORD IS PRESIDENT OF NICHIBEI ASSOCIATES AN INTERNATIONAL CONSULTING GROUP IN SAN FRANCISCO 9308100139 930810 WORK & FAMILY BY SUE SHELLENBARGER ONE IN FOUR ELDERLY PATIENTS GETS INADEQUATE HOME CARE FROM FAMILY MEMBERS OR FRIENDS AFTER HOSPITALIZATION PARTLY BECAUSE THE CAREGIVERS ARE BURDENED BY JOBS OR OTHER DUTIES A STUDY SAYS THE ELDERCARE LOAD ON FAMILIES IS GROWING AS HEALTHCARE TRENDS LEAD TO ELDERS' BEING DISCHARGED FROM HOSPITALS QUICKER AND SICKER SAYS THE STUDY BY ENOLA PROCTOR AND NANCY MORROWHOWELL MEMBERS OF THE SOCIALWORK FACULTY AT WASHINGTON UNIVERSITY IN ST LOUIS BUT FAMILY MEMBERS ARE OFTEN ILLEQUIPPED TO PROVIDE HOME CARE FOR AILING ELDERS AND OVERESTIMATE THEIR ABILITY TO DO SO SAYS THE SURVEY OF HOSPITAL DISCHARGE PLANNERS REPORT THE AUTHORS WHO COLLECTED DATA FROM 16 HOSPITAL DISCHARGE PLANNERS ABOUT 212 PATIENTS MOST ELDERLY PATIENTS ARE RELEASED TO THE CARE OF ADULT CHILDREN MANY OF WHOM MUST TAKE TIME OFF FROM JOBS TO PROVIDE TEMPORARY CARE THE STUDY SAYS BUT THEY CAN BE EASILY OVERWHELMED BY SUCH ROUTINE TASKS AS BATHING AND TURNING BEDRIDDEN PATIENTS THE STUDY SAYS AND INADEQUATE HOME CARE PUTS PATIENTS AT RISK OF REPEATED HOSPITALIZATION THE STUDY OFFERS EMPLOYERS INSIGHTS INTO PROBLEMS FACED BY CHILDREN OF AILING ELDERS MS MORROWHOWELL SAYS MOST EMPLOYEES NEED HELP IN MAKING REALISTIC DECISIONS ABOUT HOW MUCH ELDER CARE THEY CAN PROVIDE THEMSELVES AS WELL AS IN FINDING COMMUNITY SERVICES TO SUPPLEMENT THEIR EFFORTS SHE SAYS MORE CHILDCARE CENTERS ARE POPPING UP NEAR TRAIN STATIONS AS TRANSIT OFFICIALS SEEK TO INCREASE RIDERSHIP AMONG WORKING PARENTS A LOMBARD ILL COMMUTER TRAIN STATION CHILDCARE CENTER OPENED IN JANUARY BY KINDERCARE AT WORK A UNIT OF KINDERCARE LEARNING CENTERS HAS DRAWN DOZENS OF VISITS AND INQUIRIES FROM OFFICIALS OF CITIES AND TRANSIT AGENCIES AROUND THE COUNTRY AND IS EXPECTED TO REACH ITS CAPACITY OF 153 CHILDREN BY FALL SAYS STELLA GEORGITSIS DIRECTOR CHICAGOAREA TRANSIT OFFICIALS HAVE ASKED FOR PROPOSALS FOR OTHER CENTERS AND HAVE SET ASIDE LAND FOR CHILD CARE ON THE SITES OF TWO PLANNED STATIONS IN THE CITY'S NORTHERN AND WESTERN SUBURBS THE WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY HAS PROVIDED LAND ADJACENT TO ITS SHADY GROVE STATION NEAR GAITHERSBURG MD WHERE MONTGOMERY COUNTY THE STATE GOVERNMENT AND SEVERAL PRIVATE EMPLOYERS PLAN TO BREAK GROUND ON A 15 MILLION 106CHILD CENTER LATER THIS YEAR ABOUT A HALFDOZEN OTHER LOCAL GOVERNMENTS AND GROUPS ARE EXPLORING THE POSSIBILITY OF SIMILAR PROJECTS SAYS HAROLD BARLEY THE AUTHORITY'S MANAGER OF MARKET ANALYSIS NEW YORK'S METROPOLITAN TRANSPORTATION AUTHORITY HAS A CONSULTANT STUDYING FIVE POSSIBLE CHILDCARE SITES ALONG COMMUTER RAILROADS MOSTLY ON LONG ISLAND WITH A REPORT EXPECTED IN SEPTEMBER AND SAN FRANCISCO'S BAY AREA RAPID TRANSIT SYSTEM IS URGING DEVELOPERS ON ITS PROPERTY TO ALLOT SPACE FOR CHILDCARE CENTERS THE CENTERS ARE A STRONG DRAW FOR WORKING PARENTS SUSAN KEMP A MEDIARELATIONS SPECIALIST AND MOTHER OF TWO WHO COMMUTES TO DOWNTOWN CHICAGO BYPASSES TRAIN STATIONS CLOSER TO HOME AND DRIVES 20 MINUTES TO ONE NEAR A CHILDCARE CENTER SHE SAYS THAT ENSURES SHE CAN REACH THE CENTER AFTER WORK BY ITS 6 PM CLOSING TIME BIG SIX ACCOUNTING FIRMS TRYING HARDER TO RETAIN WOMEN ARE STARTING TO LOG RESULTS ACCOUNTING IS A CRUCIBLE FOR WORKFAMILY ISSUES BECAUSE OF ITS LOW ENTRY BARRIERS DEMANDING 10YEAR TO 12YEAR PARTNER TRACK AND UPOROUT CULTURE HALF OF THE PROFESSION'S RECRUITS BUT ONLY 5 OF ITS PARTNERS ARE WOMEN THAT'S SLOWLY CHANGING THE SHARE OF NEW PARTNERSHIPS GOING TO WOMEN ROSE TO 18 THIS YEAR AT DELOITTE & TOUCHE FROM 13 IN 1992 TO 16 AT KPMG PEAT MARWICK FROM 10 LAST YEAR AND TO 12 AT ARTHUR ANDERSEN & CO FROM 8 MANY BIG SIX FIRMS ARE ADDING WORKFAMILY AND GENDERISSUES PROGRAMS TO HELP WOMEN ADVANCE DELOITTE KPMG AND PRICE WATERHOUSE ALL STARTED GENDERISSUES WORKSHOPS FOR EMPLOYEES IN THE PAST YEAR ERNST & YOUNG AND COOPERS & LYBRAND RECENTLY PUBLISHED GUIDEBOOKS ON ALTERNATIVE SCHEDULING DELOITTE KPMG AND OTHERS HAVE STEPPED UP CAREER PLANNING AND MENTORING FOR WOMEN SOME INCLUDING KPMG AND ERNST & YOUNG HAVE RECENTLY ADDED CHILDCARE AND ELDERCARE REFERRAL SERVICES TWO FIRMS THIS YEAR HIRED HIGHPROFILE WOMEN'S ADVOCATES TANYA DOUGHTY FORMER DIRECTOR OF ADVISORY SERVICES AT CATALYST A WOMEN'S ADVOCACY GROUP JOINED ERNST & YOUNG AS DIVERSITY MANAGER AND FORMER LABOR SECRETARY LYNN MARTIN ADVISES DELOITTE ON WOMEN'S ISSUES ONE HURDLE IN ACCOUNTING HAS BEEN ALLOWING WORKERS FLEXIBILITY WITHOUT HURTING CLIENT SERVICE ARTHUR ANDERSEN WHICH BEGAN OFFERING A RANGE OF WORKFAMILY AND GENDERISSUES PROGRAMS SEVERAL YEARS AGO IS TESTING WAYS TO TAKE ADVANTAGE OF THE SEASONAL NATURE OF THE BUSINESS BY COMPRESSING WORKWEEKS IN SLOW PERIODS ALSO WHILE REDUCING HOURS IS THE BEST WAY TO ADD FLEXIBILITY IN SOME AREAS OF ITS PRACTICE CUTTING THE CLIENT LOAD WORKS BETTER IN OTHERS SAYS PETER PESCE ANDERSEN'S MANAGING DIRECTOR OF WORLDWIDE HUMAN RESOURCES WOMEN ON FLEXIBLE WORK SCHEDULES STAY ON THEM FOR AN AVERAGE OF FIVE YEARS ACCORDING TO A RECENT STUDY OF 45 WOMEN BY CATALYST MORE THAN HALF OF THE WOMEN SURVEYED GOT PROMOTIONS WHILE WORKING PART TIME SHARING A JOB OR USING ANOTHER ALTERNATIVE SCHEDULE AND 56 SAID THEY WOULD HAVE QUIT WITHOUT SUCH SCHEDULE ARRANGEMENTS BREASTFEEDING WELCOME DECLARES THE MENU AT THE WHITE DOG CAFE IN PHILADELPHIA ONE OF 16 MOTHERFRIENDLY BUSINESSES AND GROUPS HONORED BY UNICEF LAST WEEK DURING WORLD BREASTFEEDING WEEK AMONG OTHERS HONORED FOR PROVIDING MOTHERS WITH BREASTFEEDING CONSULTANTS LACTATION ROOMS AND OTHER AMENITIES AEROSPACE CORP EL SEGUNDO CALIF ESSENCE MAGAZINE NEW YORK AND JOHN HANCOCK MUTUAL LIFE INSURANCE BOSTON 9308100137 930810 ENERGY DEPARTMENT IDAHO AGREE ON PLAN FOR NUCLEAR WASTE BOISE IDAHO IDAHO AND THE FEDERAL GOVERNMENT HAVE AGREED ON A PLAN THAT WILL ALLOW THE RESUMPTION OF SHIPMENTS OF SMALL AMOUNTS OF HIGHLEVEL NUCLEAR WASTE TO A DUMP IN THE STATE'S HIGH DESERT A FEDERAL JUDGE IN JUNE BARRED THE DEPARTMENT OF ENERGY AND THE US NAVY FROM SHIPPING ANY MORE SPENT NUCLEAR FUEL OR OTHER RADIOACTIVE WASTES TO THE DUMP KNOWN AS THE IDAHO NATIONAL ENGINEERING LABORATORY UNTIL DETAILED ENVIRONMENTAL IMPACT STATEMENTS ARE PREPARED THAT COULD TAKE YEARS THE NAVY AND DOE BOTH APPEALED ARGUING AMONG OTHER THINGS THAT THE NAVY HAD NOWHERE ELSE TO STORE RADIOACTIVE WASTES FROM ITS FLEET OF NUCLEARPOWERED SURFACE SHIPS AND SUBMARINES YESTERDAY IDAHO GOV CECIL ANDRUS A LONGTIME OPPONENT OF CONTINUED LARGESCALE SHIPMENTS TO THE SITE SAID THE STATE AND THE FEDERAL AGENCIES WOULD ASK THE JUDGE TO ALLOW CERTAIN DELIVERIES TO PROCEED HOWEVER GOV ANDRUS SAID THE AGREEMENT STILL WOULD CUT BY 94 THE AMOUNT OF RADIOACTIVE WASTE THAT THE GOVERNMENT HAD PLANNED TO SHIP TO THE SITE BETWEEN NOW AND MID1995 GOV ANDRUS SAID THE AGREEMENT FULFILLS IDAHO'S PLEDGE TO KEEP THE DUMP OPEN TO SHIPMENTS THAT REFLECT LEGITIMATE RESEARCH EFFORTS AND NATIONAL SECURITY CONCERNS BUT HE SAID THE PACT ALSO WILL PREVENT THE GOVERNMENT FROM TURNING OUR STATE INTO ITS HIGHLEVEL NUCLEAR WASTE DUMP AS PART OF THE AGREEMENT GOV ANDRUS ALSO SAID THE NAVY HAS AGREED NOT TO ASK CONGRESS FOR AN EXEMPTION FROM FEDERAL ENVIRONMENTAL LAWS WHICH SOME ATTORNEYS HAD SPECULATED IT MIGHT DO MOREOVER THE DOE ALSO AGREED TO PICK UP THE PACE OF CLEANING UP SOME HIGHLY RADIOACTIVE WASTES AT THE SITE WHICH HAS BEEN PLAGUED BY VIOLATIONS OF ENVIRONMENTAL REGULATIONS BREAKDOWNS IN SAFETY SYSTEMS AND OTHER PROBLEMS A DOE SPOKESMAN CALLED THE AGREEMENT A GOOD DEAL FOR ALL SIDES THE NAVY COULD NOT IMMEDIATELY BE REACHED TO COMMENT 9308100136 930810 DIVIDEND NEWS SNYDER OIL TO ACQUIRE ASSETS FOR 30 MILLION RAISE ANNUAL PAYOUT FORT WORTH TEXAS SNYDER OIL CORP SAID IT AGREED TO BUY OIL AND GAS PRODUCING PROPERTIES FOR 30 MILLION AND WOULD RAISE ITS ANNUAL DIVIDEND 20 THE PROPERTIES TO BE ACQUIRED FROM A NUMBER OF SELLERS WILL ADD ABOUT EIGHT MILLION BARRELS OF OIL EQUIVALENTS TO SNYDER'S RESERVES SOME OF THE PROPERTIES INCLUDING 225 PRODUCING WELLS AND 272 UNDEVELOPED LOCATIONS ARE IN COLORADO'S WATTENBERG FIELD OTHER PROPERTIES IN WYOMING INCLUDE 44 PRODUCING WELLS AND 46 UNDEVELOPED PROPERTIES IN CARBON AND SWEETWATER COUNTIES THE INCREASED DIVIDEND REFLECTING RAPIDLY GROWING NET INCOME AND CASH FLOW WILL BE EFFECTIVE WITH THE SEPTEMBER PAYMENT SAID SNYDER THE ANNUAL DIVIDEND WILL BE 24 CENTS A SHARE UP FROM 20 CENTS A SHARE 9308100135 930810 WHO'S NEWS KENNEDYWILSON TAPS MILDE AS ITS PRESIDENT LOS ANGELES KENNEDYWILSON INC SAID IT NAMED AS PRESIDENT SIMON MILDE THE 47YEAROLD MANAGING DIRECTOR AND CHAIRMAN OF THE COMMERCIAL REAL ESTATE FIRM JONES LANG WOOTTON USA HE SUCCEEDS BILL STEVENSON 54 WHO ASSUMES THE NEW TITLE OF VICE CHAIRMAN OF KENNEDYWILSON A REAL ESTATE AUCTION COMPANY AMONG MR STEVENSON'S NEW DUTIES WILL BE TO FOCUS ON RESIDENTIAL AND GOVERNMENT AUCTIONS AND BUSINESS DEVELOPMENT ACTIVITIES SIMON'S DEPTH OF EXPERIENCE IN THE INTERNATIONAL COMMERCIAL REAL ESTATE COMMUNITY WILL BE A TREMENDOUS ASSET TO US AS WE CONTINUE TO EXPAND OUR OPERATIONS HERE AND OVERSEAS BILL MCMORROW KENNEDYWILSON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID OF MR MILDE'S APPOINTMENT THE SELECTION OF MR MILDE WHO HAS BEEN WITH JONES LANG WOOTTON A BRANCH OF THE LONDON COMPANY FOR 23 YEARS IS A DEPARTURE FOR KENNEDYWILSON WHICH UNTIL NOW HAS BEEN MANAGED BY ITS FOUNDERS MR MILDE WILL CONTINUE TO BE BASED IN NEW YORK AND KENNEDYWILSON'S EAST COAST OPERATIONS WILL BE CONSOLIDATED THERE 9308100134 930810 RAWSTEEL PRODUCTION SLID 01 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 01 LAST WEEK TO 1825000 TONS FROM 1826000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 54 FROM THE 1731000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 87 OF ITS CAPABILITY LAST WEEK COMPARED WITH 871 THE PREVIOUS WEEK AND 801 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 9308100133 930810 JOURNAL EXPANDS LISTINGS IN STOCK OPTIONS TABLE NEW YORK THE WALL STREET JOURNAL TODAY IS MODIFYING ITS STOCK OPTIONS TABLE TO INCLUDE MORE LISTINGS FOR EQUITY AND LONGTERM CONTRACTS THE NEW FORMAT TRIPLES THE NUMBER OF CONTRACTS QUOTED EACH DAY TO ABOUT 4500 WHILE ELIMINATING DATA OF LESSER VALUE TO MOST READERS THE LISTINGS WILL INCLUDE THE VOLUME AND LAST PRICE FOR EACH ACTIVELY TRADED PUT OR CALL PLUS THE TRADING RESULTS FOR THE CORRESPONDING CALL OR PUT WITH THE SAME STRIKE PRICE AND EXPIRATION CYCLE IT'S A COMPOSITE TABLE THAT INCLUDES A SINGLE VOLUME TOTAL FOR ANY CONTRACTS LISTED ON MORE THAN ONE EXCHANGE SEPARATELY THE MOST ACTIVE LIST HAS BEEN INCREASED TO 40 CONTRACTS FROM 25 THE JOURNAL WILL CONTINUE TO SHOW THE EXCHANGEBYEXCHANGE VOLUME AND OPEN INTEREST SUMMARIES FOR REGULAR AND LEAPS OR LONGTERM CONTRACTS 9308100132 930810 OTC FOCUS MARKET RISES AGAIN TO RECORD BOOSTED BY SMALL STOCKS SOME BIG TECH ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A CONTINUED RALLY IN SMALL STOCKS AND STRONG BUYING IN SOME LARGE TECHNOLOGY STOCKS LIFTED THE OVERTHECOUNTER MARKET TO ITS FOURTHCONSECUTIVE CLOSING RECORD THE NASDAQ COMPOSITE INDEX ROSE 041 OR 006 TO 71849 ADVANCING ISSUES OUTNUMBERED DECLINERS 1361 TO 1335 ON TOTAL VOLUME OF 2361 MILLION SHARES DOWN FROM FRIDAY'S 2511 MILLION SHARES THE COMPOSITE INDEX TRADED AS HIGH AS 72103 DURING THE MORNING BEFORE INVESTORS DECIDED TO TAKE PROFITS THE MARKET WAS STRONGER IN THE MORNING BUT QUIETED DOWN IN THE AFTERNOON SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY & CO NETWORKING STOCKS WERE THE ONLY ONES THAT HAD PEOPLE CHASING AFTER THEM SEVERAL NETWORKING ISSUES POSTED BIG GAINS CISCO SYSTEMS JUMPED 2 TO 58 3/4 THE MENLO PARK CALIF COMPANY IS EXPECTED TO HAVE VIBRANT EARNINGS GROWTH WHEN IT POSTS ITS FISCAL YEAREND RESULTS LATE THURSDAY ANALYSTS SAID A SURVEY OF 21 ANALYSTS BY FIRST CALL A UNIT OF THOMSON FINANCIAL NETWORKS PRODUCED A MEAN ESTIMATE FOR CISCO'S FISCAL FOURTH QUARTER ENDED IN JULY OF 40 CENTS A SHARE IN THE YEAREARLIER PERIOD CISCO EARNED 22 CENTS A SHARE ANTICIPATION OF CISCO'S POSITIVE RESULTS FUELED RISES IN STOCK PRICES OF OTHER COMPUTERNETWORKING COMPANIES TRADERS SAID SYNOPTICS COMMUNICATIONS LEAPED 1 5/8 TO 32 AND 3COM CORP EDGED UP 1/4 TO 22 3/4 THE SMALLER NASDAQ STOCKS PROVIDED UNDERLYING SUPPORT FOR THE RISE WHILE THE NASDAQ 100 INDEX A MEASURE OF THE LARGEST NONFINANCIAL OTC STOCKS DROPPED 170 TO 72459 SMALL STOCKS HAVE BEEN RISING FOR THE PAST MONTH ANALYSTS SAY THE RUSSELL 2000 INDEX COMPRISED OF THE SMALLEST 2000 STOCKS ON THE NEW YORK AND AMERICAN STOCK EXCHANGES AND THE NASDAQ HAS BEEN HITTING PERIODIC RECORDS SINCE MIDJULY YESTERDAY THE RUSSELL 2000 GAINED 051 TO 23923 ITS SECOND CONSECUTIVE RECORD SMALL STOCKS HAVE BEEN ADVANCING BUT THE IMPROVEMENT IN SOME TECHNOLOGY STOCKS HAS HELPED IN RECENT DAYS SAID GEORGE CONSTANTINE A TECHNICAL ANALYST WITH MERRILL LYNCH BUT MR CONSTANTINE SAID THAT DESPITE THE GAINS THE NASDAQ MARKET DOESN'T LOOK LIKE A POWER HOUSE HE SAID THE HEATING UP IN INITIAL PUBLIC OFFERINGS AND THE LACK OF LARGE BREADTH BETWEEN ADVANCING AND DECLINING ISSUES ARE INDICATIONS THAT IT ISN'T A STRONG RALLY ZENITH LABORATORIES JUMPED 2 1/2 TO 64 ON 282700 SHARES MORE THAN THREE TIMES ITS NORMAL VOLUME THAT'S AFTER SOARING AS HIGH AS 70 DURING MORNING TRADING BUT GRUNTAL INVESTMENT RESEARCH ANALYST DAVID SAKS LOWERED HIS RECOMMENDATION ON THE STOCK TO NEUTRAL FROM OUTPERFORM CITING THE PRICE SURGE IN THE STOCK LAST MONTH THE NORTHVALE NJ GENERICDRUG COMPANY REPORTED SECONDQUARTER EARNINGS OF 83 CENTS A SHARE UP FROM ONE CENT A SHARE A YEAR EARLIER CYGNUS THERAPEUTIC SYSTEMS ROSE 1/4 TO 7 1/4 LATE ON FRIDAY THE REDWOOD CITY CALIF COMPANY SAID IT HAS SUSPENDED ITS THREEMILLIONSHARE OFFERING DUE TO ADVERSE MARKET CONDITIONS CYGNUS SAID THE MARKET CLIMATE IN THE HEALTHCARE INDUSTRY HAS NOT BEEN FAVORABLE DUE IN PART TO UNCERTAINTY ABOUT THE CLINTON ADMINISTRATION'S HEALTHCARE REFORMS THE COMPANY SAID IT WILL CONTINUE TO ASSESS THE MARKET AND EXPECTS TO REINSTATE THE OFFERING WHEN CONDITIONS IMPROVE CYGNUS IS A TRANSDERMAL DRUG DELIVERY COMPANY PHYSICIAN CORP OF AMERICA JUMPED 1 TO 41 1/2 THE COMPANY IN MIAMI SAID IT HAS SIGNED A LETTER OF INTENT TO ACQUIRE FAMILY HEALTH SYSTEMS A FLORIDABASED HEALTH MAINTENANCE ORGANIZATION WITH ABOUT 60000 MEMBERS INCLUDING 38000 COMMERCIAL 21000 MEDICAID AND 1000 MEDICARE PATIENTS THE COMPANY SAID THE 45 MILLION ACQUISITION SHOULD CLOSE IN MIDOCTOBER AND IS SUBJECT TO THE EXECUTION OF A DEFINITIVE PURCHASE AGREEMENT AND CERTAIN APPROVALS INCLUDING STATE AND FEDERAL REGULATORY APPROVALS AMGEN TUMBLED 2 7/8 TO 32 1/8 AND GENZYME DROPPED 2 1/4 TO 32 1/4 LEHMAN BROTHERS LOWERED ITS RATING OF THE TWO BIOTECHNOLOGY COMPANIES TO OUTPERFORM FROM BUY ROTECH MEDICAL JUMPED 7/8 TO 11 1/4 THE ORLANDO FLA COMPANY SAID ITS BOARD APPROVED A PLAN THAT ALLOWS FOR THE REPURCHASE OF UP TO 300000 SHARES OF THE COMPANY'S COMMON STOCK ROTECH MEDICAL PROVIDES OUTPATIENT HEALTHCARE PRODUCTS AND SERVICES SUCH AS RESPIRATORY THERAPY EQUIPMENT AND HOME INFUSION THERAPY PRODUCTS 9308100131 930810 TECHNOLOGY CRAY RESEARCH GETS CONTRACT EAGAN MINN CRAY RESEARCH INC SAID THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION AWARDED IT A FIVEYEAR 46 MILLION LEASE CONTRACT FOR A 16 PROCESSOR C90 SUPERCOMPUTER TO BE USED BY THE NATIONAL WEATHER SERVICE THE WEATHER SERVICE SAID THE COMPUTER IS FIVE TIMES FASTER THAN ITS CURRENT SYSTEMS WHICH ARE ALSO MADE BY CRAY 9308100130 930810 TECHNOLOGY US INSURERS' AIDS CLAIMS SET A RECORD LAST YEAR A WALL STREET JOURNAL NEWS ROUNDUP THE US'S LIFE AND HEALTH INSURANCE COMPANIES PAID A RECORD 14 BILLION IN AIDSRELATED CLAIMS IN 1992 A 7 INCREASE FROM THE PRIOR YEAR OF THE TOTAL 7679 MILLION IN CLAIMS WERE PAID ON LIFE INSURANCE POLICIES AND 6446 MILLION WAS PAID ON ACCIDENT AND HEALTH INSURANCE POLICIES THE FIGURES WERE PREPARED BY THE AMERICAN COUNCIL OF LIFE INSURANCE AND THE HEALTH INSURANCE ASSOCIATION OF AMERICA THE CLAIMS AMOUNT TO 22 OF ALL CLAIMS PAID ON ORDINARY LIFE INSURANCE POLICIES 38 OF CLAIMS ON GROUP LIFE 14 OF CLAIMS ON INDIVIDUAL ACCIDENT AND HEALTH AND 15 ON GROUP ACCIDENT AND HEALTH TOTAL CLAIMS HAVE RISEN EACH YEAR SINCE THE NUMBERS WERE FIRST COMPILED IN 1986 WHEN THE TOTAL WAS 2922 MILLION INCLUDING THE 1992 CLAIMS THE INSURANCE INDUSTRY HAS PAID 63 BILLION IN CLAIMS RELATED TO ACQUIRED IMMUNE DEFICIENCY SYNDROME OVER THE SEVENYEAR SPAN THE STATISTICS DO NOT INCLUDE CLAIMS PAID BY SELFINSURED COMPANIES AND BY BLUE CROSS AND BLUE SHIELD ORGANIZATIONS 9308100129 930810 BATTLE MOUNTAIN UNIT TO BUY ADDITIONAL 16 IN NEW GUINEA PROJECT HOUSTON BATTLE MOUNTAIN GOLD CO SAID ITS NIUGINI MINING LTD SUBSIDIARY HAS AGREED TO PURCHASE AN ADDITIONAL 16 INTEREST IN THE LIHIR GOLD PROJECT IN PAPUA NEW GUINEA FOR 3 MILLION A PERCENTAGE POINT OR ABOUT 48 MILLION THE ADDITIONAL STAKE WILL BE PURCHASED FROM A UNIT OF RTZ CORP A BRITISH MINING CONCERN BATTLE MOUNTAIN A MINING CONCERN SAID THAT NIUGINI BASED IN SYDNEY AUSTRALIA CURRENTLY HOLDS A 20 INTEREST IN LIHIR BUT THAT STAKE IS EXPECTED TO BE REDUCED TO 14 IF THE PAPUA NEW GUINEA GOVERNMENT PURCHASES 30 OF THE PROJECT AS IT HAS INDICATED NIUGINI WOULD ULTIMATELY HOLD A 30 STAKE FOLLOWING ITS PLANNED 16 ADDITIONAL PORTION BATTLE MOUNTAIN SAID ITS UNIT'S PURCHASE IS CONTINGENT ON CERTAIN CONDITIONS INCLUDING NIUGINI'S ABILITY TO RAISE THE NECESSARY FUNDING FOR THE PURCHASE AND ITS SHARE OF DEVELOPMENT COSTS THE COMPANY SAID THAT NIUGINI EXPECTS TO FUND ITS ACQUISITION AND DEVELOPMENT COSTS LARGELY FROM EXISTING CASH RESERVES FUTURE CASH FLOWS FROM EXISTING OPERATIONS AND THE PROCEEDS OF AN INTERNATIONAL EQUITY ISSUE KARL E ELERS BATTLE MOUNTAIN'S CHAIRMAN SAID THE PURCHASE WON'T REQUIRE ANY ADDITIONAL BATTLE MOUNTAIN FUNDING AND IS EXPECTED TO ULTIMATELY DILUTE BATTLE MOUNTAIN'S INTEREST IN NIUGINI TO AS LOW AS 35 FROM THE CURRENT 565 DEPENDING UPON THE AMOUNT OF EQUITY ISSUED BY NIUGINI 9308100128 930810 MARKETING & MEDIA JOURNAL REGISTER PLANS PURCHASE TRENTON NJ JOURNAL REGISTER CO SAID IT AGREED TO PURCHASE THE NORRISTOWN PA TIMES HERALD NEWSPAPER FROM THE STRASSBURGER FAMILY OWNER OF NORRISTOWN HERALD INC TERMS WEREN'T DISCLOSED THE TIMES HERALD HAS A CIRCULATION OF ABOUT 30000 JOURNAL REGISTER CO OWNS NEWSPAPERS COMMERCIAL PRINTING COMPANIES AND A SOFTWARE DEVELOPMENT CONCERN 9308100127 930810 MARKETSCAN STINGY WHEN SELECTING GROCERY BASICS CONSUMERS STILL SPLURGE ON FANCY FOODS BY KATHLEEN DEVENY AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL EVEN PENNYPINCHERS DON'T LIVE BY BREAD ALONE GROCERY SHOPPERS NOWADAYS MAY BE WATCHING THEIR WALLETS AND REACHING FOR PRIVATELABEL GOODS BUT PLENTY OF THEM STILL DROP MORE FRIVOLOUS FARE INTO THEIR CARTS ALTHOUGH SOUNDING MORE ATTUNED TO THE INDULGENT 1980S HONEYFLAVORED MUSTARDS SUNDRIED TOMATOES BISCUITS DIPPED IN DARK CHOCOLATE AND OTHER GOURMET FOODS REPRESENT SURPRISING BRIGHT SPOTS IN THE OTHERWISE DREARY SUPERMARKET BUSINESS NOT THAT TODAY'S BUDGETMINDED SHOPPERS WILL PAY ANY PRICE FOR EXTRAVIRGIN OLIVE OIL OR JALAPENO JELLY THE MUCHHERALDED DECLINE OF THE YUPPIE LIFESTYLE HAS LEFT MARKETERS OF GOURMET FOODS SCRAMBLING TO ADAPT TO THE MORE BASIC VALUES OF THE 1990S THESE DAYS MANY MAKERS OF FANCY FOODS ARE RUSHING TO BROADEN THEIR DISTRIBUTION FROM GOURMET BOUTIQUES TO SUPERMARKETS CUT THEIR PRICES AND SCRAP OSTENTATIOUS PACKAGING OTHERS NOW CALL THEIR PRODUCTS SIMPLY ALLNATURAL RATHER THAN THE SNOOTIERSOUNDING GOURMET WHEN I STARTED IN THIS BUSINESS OUR RASPBERRY VINEGAR SOLD FOR 6 BUT NOW IT SELLS FOR 2 SAYS ROBERT POKORNEY PRESIDENT OF THOMSON BERRY FARMS A MAKER OF JAMS AND VINEGARS IN DULUTH MINN WE SURVIVED BECAUSE FIVE YEARS AGO WE MADE THE DECISION TO MOVE AS QUICKLY AS POSSIBLE INTO GROCERY STORES FOR MARKETERS WHO STRIKE THE PROPER BALANCE BETWEEN PRUDENCE AND INDULGENCE THE PAYOFF CAN BE CONSIDERABLE SUPERMARKET SALES OF THOMSON BERRY FARMS RASPBERRY VINEGAR SHOT UP 186 TO 166073 DURING THE 52 WEEKS ENDED MAY 23 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF ALL VINEGARS MEANWHILE INCHED UP ONLY 3 SIMILARLY SALES OF BLANCHARD & BLANCHARD ALLNATURAL SALAD DRESSINGS JUMPED 132 DURING THE SAME PERIOD WHILE THE ENTIRE SALADDRESSING CATEGORY GREW AT LESS THAN HALF THAT RATE AND SALES OF CARR'S IMPORTED CRACKERS INCREASED 53 WHILE TOTAL CRACKER SALES WERE FLAT CERTAINLY MANY SHOPPERS WHO PLUNK DOWN 5 FOR A JAR OF JAM ARE WELLOFF AND HAVE NOT FELT PINCHED DURING THE ECONOMIC SLUMP BUT MARKETERS SAY EVEN TODAY'S BUDGETMINDED CONSUMERS OCCASIONALLY PAMPER THEIR PALATES WITH FANCY FOODS MANY BABY BOOMERS WHO GREW ACCUSTOMED TO FINE RESTAURANT MEALS DURING THE MORE AFFLUENT '80S FEEL THEY WORK HARD AND THAT THEY DESERVE BALSAMIC VINEGAR OR BOYSENBERRY PRESERVES WHEN TRYING TO ECONOMIZE BY EATING AT HOME JULIE REINSTEIN A 33YEAROLD MARKETING EXECUTIVE IN HIGHLAND PARK ILL USED TO DINE OUT WITH HER HUSBAND FREQUENTLY BEFORE THEIR TWO CHILDREN WERE BORN NO MORE NOW THE REINSTEINS ARE TOO BUSY SAVING FOR A BIGGER HOUSE FRETTING ABOUT RETIREMENT AND BUYING LIFE INSURANCE ONCE IN A WHILE I WILL GET A FANCY SALAD DRESSING SAYS MS REINSTEIN BECAUSE IT'S THE ONE THING I CAN SPLURGE ON NICOLE CAWLEY A 35YEAROLD VICE PRESIDENT AT A BANK IN NEW YORK HAS BECOME A DEDICATED BUYER OF SUCH GOURMET INGREDIENTS AS FANCY OLIVE OILS HAVING BEEN A BANKER IN THE '80S I SPENT A LOT OF TIME GOING TO CLOSING DINNERS MS CAWLEY SAYS NOW PEOPLE ARE STAYING HOME MORE AND THEY LIKE TO BUY THINGS THAT REPLACE THE EXPERIENCES OF EATING OUT CONSUMERS HAVE HAD TO CUT BACK ON SO MANY BIG THINGS THEY FEEL A NEED FOR SMALL TREATS SAYS JUDITH LANGER A CONSUMERBEHAVIOR EXPERT IN NEW YORK THEY MIGHT FEEL FOOLISH PAYING EXTRA FOR PAPER TOWELS BUT NOT FOR FANCY MUSTARD THESE FRUGAL GOURMETS HAVEN'T ESCAPED THE ATTENTION OF SOME GROCERY STORES AT LARRY'S MARKETS A CHAIN OF FIVE STORES IN SEATTLE SPECIALTY FOODS ARE AMONG THE COMPANY'S FASTESTGROWING DEPARTMENTS WITH SALES UP 14 DURING THE SECOND QUARTER ACCORDING TO JEFF BERGMAN LARRY'S SALES DIRECTOR OF SPECIALTY FOODS EVEN SOME KROGER CO STORES HAVE INTEGRATED GOURMET PRODUCTS INTO THEIR REGULAR MERCHANDISE DISPLAYS ALONGSIDE KRAFT SALAD DRESSINGS OR HEINZ VINEGAR GOURMET FOODS ARE VERY IMPORTANT TO OUR WHOLE OPERATION SAYS TOM HARBERTS CHIEF EXECUTIVE OF BYERLY'S INC IN MINNEAPOLIS PEOPLE IN A TOUGH ECONOMY ARE LOOKING FOR VALUE AND IN MANY CASES THESE HIGHQUALITY PRODUCTS EQUATE WITH VALUE BUT BREAKING OUT OF SPECIALTYFOOD AISLES REFERRED TO BY SOME MARKETERS AS THE CAPERS AND CAVIAR SECTION OFTEN PRESENTS A NEW SET OF DIFFICULTIES FOR SMALL MARKETERS MANY SUPERMARKETS REQUIRE COMPANIES TO PAY A FEE CALLED A SLOTTING ALLOWANCE FOR SHELF SPACE FOR NEW ITEMS SUSAN FRANKEL OF MELTING POT FOODS IN OAK PARK ILL WAS ALARMED TO FIND SOME GROCERS EXPECTED AS MUCH AS 10000 TO STOCK BOXES OF HER MARRAKESH EXPRESS COUSCOUS MIX IT'S HORRIBLE MS FRANKEL SAYS I'M NOT SURE HOW TO DEAL WITH IT SHE IS CURRENTLY TRYING TO WORK OUT OTHER ARRANGEMENTS TO AVOID SUCH EXPENSES HANK CONLAN PRESIDENT OF CALIFORNIA SUN DRY FOODS IN SAN MATEO CALIF HAS ATTEMPTED TO COAX GROCERS TO STOCK JARS OF HIS SUNDRIED TOMATO PRODUCTS IN PRODUCE SECTIONS WHERE 80 OF ALL GROCERY SHOPPERS ARE LIKELY TO BROWSE AND SLOTTING ALLOWANCES ARE UNCOMMON MR CONLAN WHO CONCEIVED HIS PRODUCTS AS MASSMARKET ITEMS ABOUT TWO YEARS AGO SHUNS GOURMET SHOPS AND SELLS HIS SUNDRIED TOMATOES SALSAS AND SPREADS ONLY TO SUPERMARKETS HE COUNTS SUCH CHAINS AS LUCKY STORES IN CALIFORNIA AND KEY FOOD IN NEW YORK AMONG HIS CUSTOMERS MR CONLAN HAS BROKEN INTO MAINSTREAM SUPERMARKETS PARTLY BY KEEPING HIS PRICES IN CHECK INDEED GOURMETFOOD MARKETERS ARE FINDING IT HARD TO PUT THROUGH ANY PRICE INCREASES I HAVEN'T CHANGED MY PRICES IN EIGHT YEARS SAYS ANNE LANYI OWNER OF A COMPANY THAT MARKETS SALAD DRESSINGS UNDER THE ANNE'S BRAND MS LANYI SAYS HER PRODUCTS AVERAGE 179 TO 249 PER BOTTLE ABOUT 40 CENTS A BOTTLE MORE THAN MASSMARKET DRESSINGS SOME PRIVATELABEL BRANDS ARE TRYING TO ATTRACT THE GROWING NUMBER OF ECONOMICAL EPICURES DURING THE DECADENT '80S PEOPLE DEVELOPED A TASTE FOR QUALITY AND THEY DON'T WANT TO LOWER THEIR STANDARD OF LIVING SAYS DAVID A NICHOL PRESIDENT OF THE LOBLAW COS UNIT THAT MARKETS PRESIDENT'S CHOICE THE CONSUMER TODAY IS LOOKING FOR SOMEBODY WHO CAN SUPPLY A BMW FOR THE PRICE OF A CHEVROLET THE LEADER OF RETAILERS' CURRENT RUSH INTO UPSCALE PRIVATELABEL PRODUCTS LOBLAW SELLS SUCH PRESIDENT'S CHOICE PRODUCTS AS EXTRAVIRGIN OLIVE OILS AND FRESH PASTA THROUGH ITS OWN STORES IN CANADA AND SELECTED SUPERMARKET CHAINS IN THE US TO HOLD PRICES DOWN SOME MARKETERS HAVE HAD TO ELIMINATE OSTENTATIOUS PACKAGING ONE HIT OF THE EARLY 1980S WAS OPULENTLY PACKAGED CONDIMENTS MADE BY SABLE & ROSENFELD LTD IN TORONTO PACKED IN HANDBLOWN GLASS JARS IMPORTED FROM ITALY 12 OUNCES OF ITS TOMATO CHUTNEY CHILI SAUCE SOLD FOR ABOUT 9 SABLE & ROSENFELD HAS LONG SINCE DROPPED THE FANCY JARS WHICH COST 175 EACH AND IS STILL STRUGGLING TO COME UP WITH PACKAGING APPROPRIATE FOR THE NEW CONSUMER MINDSET MYRA SABLE WHO STARTED THE 21YEAROLD COMPANY IN HER KITCHEN HAS ALSO TRIMMED HER PRODUCT LINE TO 30 PRODUCTS FROM ABOUT 50 AND CUT PRICES ACROSS THE BOARD BY 25 AMONG THE PRODUCTS THAT HAVE DISAPPEARED ARE STRAWBERRIES AND RHUBARB PACKED IN CHAMPAGNE THOSE WERE '80S FLAVORS MS SABLE SAYS WISTFULLY NOW EVERYBODY WANTS PURE PRODUCTS WITH LESS SUGAR IN THE WORKS FATFREE SALAD DRESSINGS SUCH GOURMET PRODUCTS AS BLANCHARD & BLANCHARD SALAD DRESSINGS CARR'S CRACKERS AND PEEK FREANS COOKIES REPRESENT RARE BRIGHT SPOTS IN THE SUPERMARKET 9308100126 930810 WHO'S NEWS HOSPITALITY FRANCHISE SYSTEMS INC HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ LEONARD SCHUTZMAN 47 YEARS OLD WAS ELECTED A DIRECTOR OF THIS HOTEL FRANCHISER INCREASING THE BOARD TO 11 MEMBERS MR SCHUTZMAN IS SENIOR VICE PRESIDENT OF PEPSICO INC 9308100125 930810 WHAT'S NEWS WORLDWIDE NATO DEMANDED THAT SERBS LIFT THEIR SIEGE OF BOSNIA'S CAPITAL OR RISK ATTACK THE ULTIMATUM ON SARAJEVO WAS THE CLEAREST THREAT YET OF MILITARY ACTION BY EUROPE AND THE US SINCE THE YUGOSLAV CIVIL WAR ERUPTED NATO GOVERNMENTS APPROVED A LIST OF POSSIBLE MILITARY TARGETS FOR BOMBING RAIDS AND AGREED THAT A STRIKE WOULD FIRST BE SUBJECT TO THE AUTHORIZATION OF UN CHIEF BOUTROSGHALI LET NO ONE DOUBT THAT THIS ALLIANCE HAS THE POLITICAL WILL TO CARRY THROUGH ITS WARNING NATO SECRETARYGENERAL WOERNER SAID GENEVA TALKS BETWEEN SERBS CROATS AND MUSLIMS REMAINED DEADLOCKED A US OFFICIAL SAID WASHINGTON IS VERY SKEPTICAL OF THE CHANCES FOR A RAPID PULLOUT OF SERB FORCES AROUND SARAJEVO PRESIDENT CLINTON USED A CAMPAIGNSTYLE RALLY IN CHARLESTON WVA TO APPEAL FOR GOP SUPPORT ON HEALTH CARE WELFARE REFORM AND ANTICRIME LEGISLATION IN HIS FIRST TRIP OUTSIDE WASHINGTON SINCE HIS BUDGET VICTORY THE PRESIDENT SAID OF THE DEFICITREDUCTION PLAN NOW WE CAN TRULY SAY CHANGE HAS COME TO AMERICA THE CLINTON ADMINISTRATION RENEWED ITS EFFORT TO OVERHAUL GRAZING POLICY CALLING FOR HIGHER FEES AND STIFFER LANDUSE REQUIREMENTS FOR RANCHERS THE PROPOSAL WHICH MET WITH OPPOSITION FROM RANCHERS AND QUALIFIED PRAISE FROM CONSERVATION GROUPS WOULD MORE THAN DOUBLE SOME OF THE FEES CHARGED FOR GRAZING UN FORCES CUT BACK ON RELIEF AGENCIES' MOVEMENTS IN SOMALIA'S CAPITAL A DAY AFTER FOUR AMERICAN SOLDIERS DIED IN AN EXPLOSION THAT UN OFFICIALS BLAMED ON A CLAN LEADER THEIR INSISTENCE THAT SUPPORTERS OF AIDID WERE RESPONSIBLE INDICATED THAT THE UN MIGHT BE GEARING UP FOR RETALIATORY ACTION JAPAN'S NEW LEADERSHIP TOOK OFFICE AND IMMEDIATELY SAID IT WOULD PRESERVE MANY ECONOMIC POLICIES THE COALITION'S NEW FINANCE MINISTER SAID HE WAS COOL TO DEFICIT SPENDING WHILE THE TRADE MINISTER VOWED TO RESIST US CALLS FOR MANAGED TRADE PRIME MINISTER HOSOKAWA URGED RESPONSIBLE CHANGE THREE PALESTINIAN DELEGATES MET IN TUNISIA WITH THE PLO LEADERSHIP TO DISCUSS POLICY DIFFERENCES AND A SOURCE SAID THE PEACE NEGOTIATORS HAD WITHDRAWN A THREAT TO QUIT IN JERUSALEM THE ISRAELI GOVERNMENT AGAIN RULED OUT ANY DIRECT TALKS WITH THE PLO AND SAID IT WOULD KEEP NEGOTIATING WITH THE PALESTINIAN PEACE DELEGATION FLOOD WATERS MOVED PAST STRAINED MISSOURI LEVEES ALONG THE FINAL 30MILE STRETCH OF THE MISSISSIPPI RIVER BEFORE IT EMPTIES INTO THE BROADER CHANNEL AT THE SOUTHERN TIP OF ILLINOIS THE RIVER WAS EXPECTED TO CREST FRIDAY IN MEMPHIS TENN AT 294 FEET WELL BELOW DANGER LEVELS A US DIPLOMAT WAS SHOT AND KILLED IN THE FORMER SOVIET REPUBLIC OF GEORGIA AS HE WAS BEING DRIVEN TO THE COUNTRY'S CAPITAL BY THE CHIEF BODYGUARD FOR GEORGIAN LEADER SHEVARDNADZE IT WASN'T IMMEDIATELY KNOWN WHO FIRED THE SHOT THAT KILLED FRED WOODRUFF 45 A REGIONAL AFFAIRS OFFICER POSTED TEMPORARILY WITH THE US EMBASSY IN TBILISI GERMANY'S KOHL SAID THAT EUROPE'S LATEST CURRENCY CRISIS COULD POSTPONE IMPLEMENTATION OF THE MAASTRICHT TREATY FOR A COUPLE OF YEARS BUT THE CHANCELLOR ALSO REAFFIRMED THAT HIS COUNTRY IS COMMITTED TO THE PLAN FOR EUROPEAN ECONOMIC AND POLITICAL UNION THE NAVY WAS TOLD IT CAN RESUME PENDING COURT APPROVAL SOME SHIPMENTS OF SPENT NUCLEAR FUEL TO A DISPOSAL SITE IN IDAHO AS THE RESULT OF FEDERAL PROMISES TO IMPROVE ENVIRONMENTAL SAFEGUARDS AT THE FACILITY THE ENERGY DEPARTMENT SAID IDAHO'S GOV ANDRUS HAD AGREED TO ACCEPT A LIMITED NUMBER OF SHIPMENTS LIBERIAN REBEL LEADER TAYLOR HAS AGREED TO LET AID SHIPMENTS PASS THROUGH HIS MILITARY LINES TO HELP THOUSANDS OF PEOPLE AT RISK OF STARVING A RELIEF AGENCY OFFICIAL SAID THE SHIPMENTS ARE TO BE TRANSPORTED BY RAIL INTO NORTHERN AND CENTRAL LIBERIA FROM THE PORT OF BUCHANAN TAYLOR SIGNED A PEACE ACCORD WITH THE GOVERNMENT ON JULY 25 FIGHTING RAGED IN THE BESIEGED ANGOLAN GOVERNMENT STRONGHOLD OF CUITO AND STATE RADIO SAID 150 PEOPLE WERE KILLED THE CITY HAS BEEN UNDER SIEGE BY UNITA REBELS SINCE MIDJULY MEANWHILE THE REBELS SAID HUNDREDS OF WOMEN AND CHILDREN WERE WOUNDED IN GOVERNMENT RAIDS ON REBELHELD HUAMBO DURING THE PAST WEEK 9308100124 930810 TECHNOLOGY UNISYS REVAMPING LEADS TO DEPARTURE OF ITS PRESIDENT BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL UNISYS CORP REORGANIZED ITS PRESIDENT OUT OF A JOB AS THE COMPUTER MAKER CONTINUES TO STREAMLINE AND MOVE AWAY FROM ITS TRADITIONAL MAINFRAME BUSINESS AND TOWARD PROVIDING TECHNOLOGY SOLUTIONS RETO BRAUN THE PERSONABLE SWISSBORN PRESIDENT AND CHIEF OPERATING OFFICER WHO ORGANIZED MUCH OF THE UNISYS TURNAROUND OVER THE PAST SEVERAL YEARS IS LEAVING THE BLUE BELL PA COMPANY HE WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MOORE CORP A TORONTOBASED PROVIDER OF BUSINESS FORMS AND RELATED PRODUCTS WITH REVENUE OF 243 BILLION A YEAR THE CHAIRMAN OF MOORE M KEITH GOODRICH 58 YEARS OLD PREVIOUSLY ALSO HELD THESE RESPONSIBILITIES MR BRAUN'S DEPARTURE PLACES THE MANAGEMENT OF UNISYS WHICH REPORTED 843 BILLION IN REVENUE LAST YEAR MORE DIRECTLY IN THE HANDS OF ITS CHAIRMAN JAMES UNRUH THE COMPANY IS BEING REORGANIZED INTO THREE BUSINESS GROUPS ONE OF WHICH MR UNRUH WILL RUN WHILE THE OTHER TWO REPORT DIRECTLY TO HIM IN AN INTERVIEW MR UNRUH SAID HE WANTED CLOSER CONTACT WITH THE ORGANIZATION TO PUSH A CHANGE OF CULTURE PART OF THE CULTURE CHANGE INCLUDES FEWER LAYERS OF MANAGEMENT TO SPEED UP DECISIONS WE'RE TALKING ABOUT TRYING TO ACHIEVE A MANAGED REVOLUTION IN THE WAY WE THINK AND APPROACH OUR BUSINESS BECAUSE THE BUSINESS HAS CHANGED DRAMATICALLY MR UNRUH SAID THE POINT WE'RE TRYING TO GET ACROSS IS THAT EVOLUTION WON'T DO MR UNRUH DECLINED TO COMMENT ON THE REASON FOR MR BRAUN'S DEPARTURE EXCEPT TO SAY HE HAD CHOSEN TO PURSUE OTHER INTERESTS MR BRAUN SAID HE WAS LOOKING FOR A CHANCE TO RUN A COMPANY AND THAT THE ELIMINATION OF HIS JOB AT UNISYS PROVIDED THE RIGHT TIMING IT SEEMED LIKE A GOOD TIME IF I WANT A CEO JOB TO GET IT NOW MR BRAUN SAID IN AN INTERVIEW WE MR UNRUH AND MR BRAUN ARE ONLY TWO MONTHS APART IN AGE MR BRAUN 52 A FORMER VICE PRESIDENT OF BURROUGHS CORP WHICH WAS MERGED WITH SPERRY CORP TO FORM UNISYS IN 1986 HAD BEEN WITH THE TWO COMPANIES FOR A TOTAL OF 24 YEARS SOME INDUSTRY EXPERTS SPECULATED THAT MR BRAUN WAS LEAVING BECAUSE HE HAD BEEN UNWILLING TO DISCARD THE MAINFRAME CULTURE AS QUICKLY AS MR UNRUH WANTED MR UNRUH HAS BEEN STRIVING TO MAKE UNISYS MORE OPEN SYSTEMS ORIENTED MEANING DEVELOPING TECHNOLOGY THAT CAN ACT INTERCHANGEABLY WITH THE PRODUCTS OF COMPETITORS MR UNRUH IS ALSO PUSHING FOR UNISYS TO PROVIDE CONSULTATIVE TECHNOLOGY SERVICE TO CUSTOMERS OFFERING NOT ONLY UNISYS SOLUTIONS BUT ALSO THOSE OF ITS COMPETITORS MR UNRUH WILL HEAD THE NEWLY CREATED INFORMATION SERVICES AND SYSTEMS GROUP WHICH WILL PROVIDE INTEGRATED SOLUTIONS TO CLIENTS A GOVERNMENT SYSTEMS GROUP WILL BE HEADED BY ALBERT ZETTLEMOYER WHO USED TO HEAD PARAMAX SYSTEMS UNISYS'S DEFENSE BUSINESS HUGH LYNCH EXECUTIVE VICE PRESIDENT WILL HEAD THE COMPUTER SYSTEMS BUSINESS GROUP WHICH WILL HANDLE MARKETING OF UNISYS PRODUCTS ALONG RECENTLY ESTABLISHED INDUSTRY LINES SUCH AS AIRLINES AND BANKING UNISYS SHARES CLOSED YESTERDAY AT 1025 UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9308100123 930810 BOEING SELLS JETS TO CHINA SEATTLE BOEING CO SAID IT SOLD TWO 737300 JETLINERS TO CHINA AVIATION SUPPLIERS CORP FOR ABOUT 70 MILLION THE 128SEAT JETLINERS ARE TO BE USED BY AIR CHINA THE LARGEST OF CHINA'S STATERUN AIRLINES THE ORDER BRINGS TO 25 THE NUMBER OF PLANES CHINA HAS BOUGHT FROM BOEING THIS YEAR 9308100122 930810 CORPORATE FOCUS AMERICAN GENERAL BOOMS AS CHIEF HEWS TO HIS POLICIES BUT INSURER'S CRITICS BELIEVE UNCERTAINTY OVER SUCCESSION IS A MAJOR FLAW BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON HAROLD S HOOK HAS PROVED HIS CRITICS WRONG AT LEAST SO FAR THREE YEARS AGO THE LONGTIME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN GENERAL CORP FENDED OFF A PRICEY TAKEOVER BID THAT SOME ANALYSTS THOUGHT HE SHOULD HAVE ACCEPTED THEN AFTER PUTTING THE INSURER UP FOR SALE A MOVE ACCLAIMED BY ANALYSTS HE REVERSED COURSE JUST FOUR MONTHS LATER AND DECIDED TO FIX THE UNDERPERFORMING COMPANY HIMSELF NOW MR HOOK HAS AMERICAN GENERAL RIDING HIGH POSTING RECORD EARNINGS AND RANKING AT THE TOP OF SOME ANALYSTS' INSURANCE INDUSTRY PICKS WHO COULD FOLLOW SUCH A HIGHWIRE ACT THAT'S THE QUESTION THAT NOW CONCERNS WALL STREET MR HOOK'S LATEST HEIR APPARENT ROY W HALEY RESIGNED LAST TUESDAY AFTER BEING TOLD THAT THE 61YEAROLD MR HOOK WANTED TO CONSIDER OTHER CANDIDATES TO SUCCEED HIM WHEN HE RETIRES IN 1994 OR 1995 MR HALEY WAS THE THIRD POTENTIAL CHIEF EXECUTIVE TO LEAVE DURING THE PAST FIVE YEARS RAISING THE QUESTION OF WHETHER THE IRONHANDED MR HOOK WHO TOUTS HIS OWN COPYRIGHTED MANAGEMENT THEORY AND REQUIRES ALL EMPLOYEES TO LEARN HIS MODELNETICS SYSTEM WILL EVER LET GO OF THE REINS THE CEO HAS BECOME INGRAINED AND THE LATEST MOVE THAT HAS TAKEN PLACE DOWN THERE IS ANOTHER MOVE TO DELAY THE CEO'S DEPARTURE SAYS AN INSURANCE EXECUTIVE FAMILIAR WITH THE COMPANY IF HE'S GOING TO LEAVE HE'S GOING TO LEAVE A SHIP ADRIFT MR HOOK SAYS HE IS INDEED GOING TO LEAVE PROBABLY BY THE END OF 1994 BUT DEFINITELY BY THE 1995 ANNUAL MEETING AT LEAST ACCORDING TO MY PLAN ANALYSTS POINT TO THE NEW PRESIDENT JAMES R TUERFF AS THE NEXT HEIR APPARENT IN THE 52YEAROLD MR TUERFF AMERICAN GENERAL TURNS TO AN EXPERIENCED OPERATIONS MANAGER WHO MADE HIS MARK BY TURNING AROUND THE TROUBLED HOMESERVICES BUSINESS A UNIT MR HOOK CONSIDERED SELLING OFF IN 1990 UNDER MR TUERFF HOME SERVICES REDUCED PAPERWORK SO MUCH FOR EXAMPLE THAT SALESMEN HAVE TWO HOURS MORE A DAY TO BANG ON DOORS BACKOFFICE OPERATIONS AT THE UNIT'S NASHVILLE TENN HEADQUARTERS WERE CONSOLIDATED CUTTING 1300 OF 2400 JOBS AND SAVING ABOUT 45 MILLION IN ANNUAL COSTS ONE ANALYST SAYS THE THINGS TUERFF HAS DONE ARE GOOD BUSINESS WE'RE EXCITED TO SEE HIM UP THERE SAYS MARK A SCHODER AN ANALYST WITH ALEX BROWN & SONS THE 46YEAROLD MR HALEY HAD BEEN REWARDED FOR HIS EFFORTS WITH THE PRESIDENCY IN 1991 AND IN MARCH ADDED THE TITLE OF CHIEF OPERATING OFFICER AND MR HOOK SAID THEN THAT MR HALEY BECOMING CHIEF EXECUTIVE WAS CERTAINLY THE NEXT LOGICAL STEP BUT MR HOOK CHAIRMAN AND CEO SINCE 1978 SOURED ON THE CHOICE AND DECIDED TO LOOK ELSEWHERE IN LATE JULY AMERICAN GENERAL'S BOARD UNANIMOUSLY AGREED IF I'M NOT THE CLEARCUT CHOICE THEN I THOUGHT I SHOULD LOOK ELSEWHERE MR HALEY SAID IN AN INTERVIEW I DON'T AGREE WITH THE CONCLUSION AND I DON'T AGREE WITH THE ASSUMPTIONS BUT I RESPECT HIS RIGHT TO MAKE THE JUDGMENTS HE HAS TO MAKE SAYS MR HOOK IN ROY HALEY'S CASE IF THERE WAS A JOB HERE FOR HIM IT WOULD BE THE TOP JOB THE IDEA WAS TO DETERMINE WHETHER THAT WOULD BE THE CASE ONCE THAT DECISION WAS MADE IN THE NEGATIVE JIM TUERFF ALMOST AUTOMATICALLY MOVED UP WHETHER MR TUERFF WHO WAS PROMOTED WHILE ON VACATION LAST WEEK CAN SURVIVE AND BECOME CHAIRMAN REMAINS TO BE SEEN AFTER ALL CHANGE IS NOTHING NEW TO AMERICAN GENERAL THE INSURANCE AND FINANCIALSERVICES CONCERN WITH ASSETS OF 40 BILLION HAS BEEN IN A CONTINUOUS TURNAROUND MODE SINCE 1982 MR HOOK SAYS CUTTING COSTS AND SELLING OFF ITS PROPERTY AND CASUALTY BUSINESS AND ITS GROUP INSURANCE BUSINESS FOR EXAMPLE WHILE DOUBLING THE SIZE OF CONSUMER FINANCE THROUGH ACQUISITIONS AMERICAN GENERAL'S RETIREMENT ANNUITIES SUBSIDIARY ALSO HAS BEEN ON A ROLL BENEFITING FROM ITS TRIPLEA CREDIT RATINGS AS BABY BOOMERS HAVE POURED MONEY INTO HIGHQUALITY RETIREMENT INVESTMENTS AS A RESULT AMERICAN GENERAL EARNED 553 MILLION OR 245 A SHARE IN 1992 COMPARED WITH 480 MILLION OR 213 A SHARE IN 1991 REVENUE GREW 47 TO 46 BILLION FROM 44 BILLION IN THE MOST RECENT SECOND QUARTER NET INCOME REACHED 1506 MILLION OR 70 CENTS A SHARE UP FROM 1274 MILLION OR 59 CENTS A SHARE THE YEAR EARLIER SECONDQUARTER REVENUE GREW MORE THAN 8 TO ALMOST 2 BILLION FROM 18 BILLION THE CHANGES THAT CREATED THESE IMPROVED RESULTS WEREN'T APPRECIATED IN 1990 WHEN TORCHMARK CORP OFFERED ABOUT 6 BILLION FOR AMERICAN GENERAL MR HOOK SAYS AND PROBABLY STILL AREN'T FULLY APPRECIATED NOW WORDS LIKE MORIBUND' WERE USED WHEN IN REALITY WE WERE 80 DIFFERENT THAN WE WERE EIGHT YEARS EARLIER MR HOOK SAYS THE COMPANY WAS PROPERLY POSITIONED ALL THEY SHAREHOLDERS HAD TO DO WAS GIVE US A CHANCE TO RUN IT FOR A YEAR OR TWO TORCHMARK AN INSURER ABOUT HALF THE SIZE OF AMERICAN GENERAL OFFERED 50 A SHARE IN CASH AND STOCK AT A TIME AMERICAN GENERAL WAS TRADING AT ABOUT 32 SINCE THEN AMERICAN GENERAL HAS BOUGHT BACK ABOUT 530 MILLION OF SHARES AND SEEN ITS SHARE PRICE ALMOST DOUBLE AFTER ADJUSTING FOR A 2FOR1 SPLIT YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICAN GENERAL STOCK CLOSED AT 31625 UP 125 CENTS MANAGEMENT HAS DONE AN EXTREMELY GOOD JOB SAYS ANALYST MICHAEL LEWIS OF DEAN WITTER REYNOLDS HAROLD IS IN A POSITION TO DICTATE HIS TERMS STILL CRITICS SAY THE STOCK AND THE COMPANY STILL MAY BE UNDERACHIEVERS BECAUSE OF THE UNCERTAINTY OF SUCCESSION AND MR HOOK'S MANAGEMENT STYLE MUCH IMPROVEMENT CAN BE CHALKED UP SIMPLY TO LOWER INTEREST RATES THEY SAY AND SOME EVEN THINK AMERICAN GENERAL MIGHT BE A TAKEOVER TARGET AGAIN IN THE NEXT FEW YEARS AMERICAN GENERAL SHOULD BE EARNING 1 BILLION A YEAR SAYS AN INSURANCE INDUSTRY EXECUTIVE WHO POINTS TO THE FIRM'S STILL HIGHCOST STRUCTURE INCLUDING THE EXPENSE OF MR HOOK'S MANAGEMENT ENTERPRISE WHICH INVOLVES A MANAGEMENT ACADEMY DESIGNED TO BREED A STRONG SUPPORTING CAST IT'S STILL AN UNDERACHIEVING COMPANY BECAUSE THE CHANGES THEY NEED TO MAKE ARE INCONSISTENT WITH ONE INDIVIDUAL'S MR HOOK'S CONCEPT OF MANAGEMENT MR HOOK COUNTERS THAT THE COMPANY HAS POSTED REMARKABLE RESULTS IN A TOUGH ENVIRONMENT FOR INSURERS AND THAT WHEN HE DOES RETIRE HE WILL LEAVE BEHIND A STRONG ORGANIZATION WITH STRONG INDIVIDUALS WE HAVE TO STAND MUSTER AND UNFORTUNATELY ONLY TIME WILL TELL HE SAYS THAT'S HOW I FELT BACK IN '90 AND WE GOT THE CHANCE TO SHOW WE BROUGHT THE COMPANY THROUGH A VERY TUMULTUOUS PERIOD 9308100121 930810 BIG BOARD SEAT SOLD FOR 750000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 750000 UP 25000 FROM THE PREVIOUS SALE JULY 21 SEATS ARE CURRENTLY QUOTED AT 660000 BID AND 775000 OFFERED 9308100120 930810 NORTHWEST AIR TRAFFIC DROPS MINNEAPOLIS NORTHWEST AIRLINES SAID JULY TRAFFIC DECLINED 11 TO 545 BILLION REVENUE PASSENGER MILES FROM 615 BILLION IN THE YEAREARLIER MONTH A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE THE UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID ITS CAPACITY AS MEASURED IN AVAILABLE SEAT MILES DECLINED 4 FROM JULY 1992 NEVERTHELESS ITS LOAD FACTOR OR PERCENTAGE OF SEATS FILLED DROPPED SIX PERCENTAGE POINTS TO 713 9308100119 930810 HERSHEY TO BUY HEINZ OPERATION HERSHEY PA HERSHEY FOODS CORP SAID IT REACHED A DEFINITIVE AGREEMENT TO BUY THE ITALIAN CONFECTIONERY BUSINESS OF HEINZ ITALIA SPA A UNIT OF HJ HEINZ CO PITTSBURGH TERMS WEREN'T DISCLOSED THE CONFECTIONERY BUSINESS A LEADER IN THE ITALIAN MARKET SELLS PRODUCTS UNDER THE SPERLARI DONDI AND SCARAMELLINI BRANDS SALES FOR THE YEAR ENDED MARCH 31 WERE ABOUT 100 MILLION HERSHEY SAID THE SALE REQUIRES GOVERNMENTAL APPROVALS 9308100118 930810 COLEMAN CO SLATES BUYBACK WICHITA KAN COLEMAN CO SAID IT WILL PURCHASE AS MANY AS 700000 OF ITS COMMON SHARES IN THE OPEN MARKET DURING THE NEXT TWO TO THREE YEARS THE MAKER OF CAMPING EQUIPMENT AND PORTABLE ELECTRIC GENERATORS SAID THE PURCHASES TO BE MADE AS THE NEED ARISES WILL PROVIDE SUFFICIENT STOCK FOR POTENTIAL EXERCISE OF CERTAIN STOCK OPTIONS GRANTED TO COLEMAN MANAGEMENT AS OF JUNE 30 THE COMPANY HAD 27 MILLION COMMON SHARES OUTSTANDING 49 MILLION OF WHICH ARE HELD BY THE PUBLIC 9308100117 930810 WESTCORP UNIT TO REDEEM DEBT IRVINE CALIF WESTCORP SAID ITS WESTERN FEDERAL SAVINGS BANK UNIT WILL REDEEM ON SEPT 10 ALL 52 MILLION OF ITS 11 SUBORDINATED CAPITAL DEBENTURES DUE 1999 THE REDEMPTION COMES AFTER THE FEDERAL OFFICE OF THRIFT SUPERVISION ALLOWED THE BANK TO INCLUDE IN ITS TOTAL CAPITAL ALL 125 MILLION OF A NEW ISSUE OF 85 SUBORDINATED CAPITAL DEBENTURES DUE 2003 WITH THE INCLUSION OF THE NEW DEBENTURES AND THE REDEMPTION OF THE OLD ONES THE BANK'S CAPITAL POSITION AS OF JUNE 30 WOULD BE 748 FOR TANGIBLE CAPITAL 748 FOR CORE CAPITAL AND 1618 FOR RISKBASED CAPITAL THE MINIMUM REGULATORY REQUIREMENTS FOR THE BANK ARE 45 FOR TANGIBLE CAPITAL 15 FOR CORE CAPITAL AND 931 FOR RISKBASED CAPITAL WESTCORP IS THE PARENT OF WESTERN FINANCIAL SAVINGS BANK IN AN ARTICLE YESTERDAY ON THE UNIT'S PLAN TO REDEEM DEBENTURES THE SUBSIDIARY'S NAME WAS MISSTATED AS WESTERN FEDERAL SAVINGS BANK 9308100116 930810 RUST INTERNATIONAL TENDER OFFER BIRMINGHAM ALA RUST INTERNATIONAL INC SAID IT COMPLETED A TENDER OFFER FOR ENCLEAN INC'S COMMON STOCK AT 675 A SHARE IN A TRANSACTION VALUED AT ABOUT 38 MILLION THE ENGINEERING CONSTRUCTION AND ENVIRONMENTAL CONSULTING CONCERN SAID 57 MILLION OR 967 OF ENCLEAN'S SHARES WERE ACCEPTED FOR PAYMENT UNDER CERTAIN CONDITIONS RUST SAID IT WOULD PAY 675 EACH FOR THE REMAINDER OF THE SHARES OUTSTANDING THE TRANSACTION IN WHICH ENCLEAN WILL BECOME A UNIT OF RUST IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER ENCLEAN OF HOUSTON IS AN INDUSTRIAL AND ENVIRONMENTAL SERVICES CONCERN PRIMARILY FOR THE REFINING AND PETROCHEMICAL INDUSTRIES 9308100115 930810 MC SHIPPING ADJOURNS MEETING NEW YORK MC SHIPPING INC ADJOURNED FOR A SECOND TIME ITS MEETING SEEKING SHAREHOLDER APPROVAL OF A CHANGE IN OPERATING STRATEGY THE COMPANY RAISED 45 MILLION IN AN INITIAL PUBLIC OFFERING IN 1989 AND PURCHASED A FLEET OF CARGO SHIPS IT PLANNED TO REALIZE CAPITAL APPRECIATION FROM THE SALE OF THE VESSELS AND THEN LIQUIDATE AND DISTRIBUTE PROCEEDS TO SHAREHOLDERS THE COMPANY NEEDS TWOTHIRDS APPROVAL OF A PROPOSAL TO BECOME AN OPERATING RATHER THAN A SELFLIQUIDATING COMPANY AS AN OPERATING COMPANY IT WOULD CONTINUE IN THE SAME BUSINESS SO FAR ONLY 59 OF ITS SHARES HAVE BEEN VOTED IN FAVOR THE MEETING WILL RECONVENE SEPT 1 9308100114 930810 PRESIDIO OIL NOTE SWAP DENVER PRESIDIO OIL CO SAID IT COMPLETED ITS EXCHANGE OF 75 MILLION OF SENIOR SUBORDINATED GASINDEXED NOTES DUE 1999 FOR NEW SENIOR GASINDEXED NOTES DUE 2002 AND SOLD 56250000 OF NEWLY ISSUED 115 SENIOR NOTES DUE 2000 THE OIL AND GAS COMPANY ALSO AGREED TO OFFER HOLDERS OF THE REMAINING 25 MILLION OF GASINDEXED NOTES THE OPPORTUNITY TO EXCHANGE THEM FOR NEW ONES AND TO PURCHASE AS MUCH AS 1875 MILLION OF NEW NOTES PROCEEDS FROM THE SALE OF THE 115 NOTES WERE USED TO REDUCE BANK DEBT 9308100113 930810 AMERICA WEST AIRLINES TRAFFIC PHOENIX AMERICA WEST AIRLINES REPORTED JULY TRAFFIC DECREASED 111 TO 104 BILLION REVENUE PASSENGER MILES FROM 117 BILLION MILES IN JULY 1992 A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE THE AIRLINE SAID ITS LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED ROSE TO 717 FROM 673 FOR THE FIRST SEVEN MONTHS OF THE YEAR AMERICA WEST'S TRAFFIC FELL 116 TO 637 BILLION REVENUE PASSENGER MILES FROM 720 BILLION MILES THE LOAD FACTOR INCREASED TO 642 FROM 616 9308100112 930810 CONTINENTAL CORP TO SELL UNIT NEW YORK CONTINENTAL CORP REACHED A DEFINITIVE AGREEMENT TO SELL ITS LONDONBASED REINSURANCE COMPANY TO AN INVESTMENT GROUP THAT INCLUDES TEXAS INVESTOR ROBERT BASS TERMS WEREN'T DISCLOSED THE INSURANCE COMPANY IS SELLING UNIONAMERICA INSURANCE CO LTD TO AN INVESTMENT GROUP THAT INCLUDES INTERNATIONAL INSURANCE INVESTORS LP KEYSTONE INC AND ACADIA PARTNERS LP KEYSTONE IS THE INVESTMENT VEHICLE OF MR BASS UNIONAMERICA SPECIALIZES IN SELLING CASUALTY REINSURANCE TO USBASED BUYERS AND REPORTED NET PREMIUMS LAST YEAR OF ABOUT 100 MILLION 9308100111 930810 CROSS TIMBERS CREDIT LINE RAISED FORT WORTH TEXAS CROSS TIMBERS OIL CO SAID IT RECEIVED COMMITMENTS FROM BANK LENDERS TO EXTEND THE COMPANY'S LINE OF CREDIT 17 MILLION TO A TOTAL OF 157 MILLION THE COMPANY CURRENTLY HAS 106 MILLION OF BORROWINGS OUTSTANDING CROSS TIMBERS SAID CROSS TIMBERS SAID THE INCREASE IN ITS CREDIT LINE WILL BE USED TO PURCHASE MORE PRODUCING OIL AND GAS PROPERTIES THE COMPANY SAID IT SEEKS TO ACQUIRE AS MUCH AS 100 MILLION OF PROPERTIES THIS YEAR IN ADDITION TO THE 78 MILLION IT ALREADY ACQUIRED IN 1993 9308100110 930810 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 59 DAYS 313 60 TO 89 DAYS 314 90 TO 119 DAYS 318 120 TO 162 DAYS 330 163 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 315 30 DAYS 319 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 266 TWO MONTHS 270 THREE MONTHS 289 SIX MONTHS 308 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 310 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 305 60 DAYS 307 90 DAYS 309 120 DAYS 322 150 DAYS 322 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 1/2 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 575 GERMANY 656 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY AUGUST 9 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 318 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 695 60 DAYS 702 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 3875 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 695 60 DAYS 705 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9308100109 930810 INTERNATIONAL ITALY'S INDUSTRIAL EMPLOYMENT MILAN EMPLOYMENT AT MAJOR ITALIAN INDUSTRIAL COMPANIES WITH MORE THAN 500 WORKERS FELL 58 IN MAY FROM A YEAR EARLIER AND WAS DOWN 02 FROM APRIL THE STATE STATISTICAL OFFICE ISTAT SAID IN THE FIRST FIVE MONTHS OF THE YEAR EMPLOYMENT IN MAJOR INDUSTRIAL COMPANIES FELL AN AVERAGE OF 62 FROM A YEAR EARLIER ISTAT SAID AMONG THE WORSTHIT SECTORS WERE TRANSPORTNETWORK CONSTRUCTION AND STEEL ISTAT ALSO SAID AVERAGE GROSS EARNINGS ROSE 25 IN MAY FROM A YEAR EARLIER BUT EARNINGS FOR THE FIRST FIVE MONTHS OF THE YEAR WERE DOWN 03 9308100108 930810 TECHNOLOGY ROCKWELL INTERNATIONAL CORP TO ACQUIRE CHIPMAKING PLANT FOR OVER 115 MILLION BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL ROCKWELL INTERNATIONAL CORP MULLING THE POTENTIAL OF MULTIMEDIA AND HIGHTECH CONSUMER ELECTRONICS AGREED TO ACQUIRE A STATEOFTHEART SILICON WAFER FABRICATING PLANT FOR MORE THAN 115 MILLION ROCKWELL ONE OF THE MOST DIVERSIFIED OF THE NATION'S MILITARY CONTRACTORS IS LOOKING FOR WAYS TO FURTHER BUILD ITS COMMERCIAL BUSINESSES THE SEMICONDUCTOR PLANT IS A STRATEGIC STEP TO POSITION ROCKWELL TO APPLY INTEGRATED ADVANCED CIRCUITRY INTO THE PERSONAL ELECTRONICS MARKET SAID LANNY ROSS PRESIDENT OF ROCKWELL'S TELECOMMUNICATIONS SEGMENT THE CONFLUENCE OF COMMUNICATIONS ENTERTAINMENT COMPUTERS FINANCIAL TRANSACTIONS TRAVEL SHOPPING FINANCIAL BROKERAGE TRANSACTIONS AND BUSINESS COMMUNICATIONS WILL BE A HUGE MARKET MR ROSS SAID WE'RE AT THE BEGINNING OF A WAVE THAT COULD DEVELOP INTO A HOME AND OFFICE MARKET IN THE TENS OF BILLIONS OF DOLLARS THE EXECUTIVE SAID ROCKWELL SAID IT WILL PAY 115 MILLION TO PURCHASE THE IRVINE CALIF CHIP PLANT FROM WESTERN DIGITAL CORP MR ROSS VALUED ROCKWELL'S TOTAL INVESTMENT AT ABOUT 150 MILLION INCLUDING EQUIPMENT LEASES AND INVENTORY OUR PLAN OVER FIVE YEARS IS TO INVEST SEVERAL HUNDRED OF MILLIONS OF DOLLARS MORE TO INCREASE THE PLANT'S CAPACITY HE SAID ROCKWELL ALSO OWNS A SEMICONDUCTOR PLANT IN NEWPORT BEACH CALIF ROCKWELL BASED IN SEAL BEACH CALIF DERIVES ROUGHLY HALF ITS REVENUE FROM THE GOVERNMENT AND THE REST FROM ITS INDUSTRIAL AUTOMATION SYSTEMS AUTO PARTS PRINTING PRESSES TELECOMMUNICATIONS AND OTHER COMMERCIAL BUSINESSES THE RAPIDLY GROWING TELECOMMUNICATIONS SEGMENT SUPPLIES ELECTRONIC PARTS TO WORLDWIDE MAKERS OF MODEMS FOR COMPUTERS AND FACSIMILE MACHINES THE SEGMENT IS STILL SMALL HOWEVER CONTRIBUTING ABOUT 500 MILLION OF ROCKWELL'S 11 BILLION IN ANNUAL SALES AS FOR A POSSIBLE MOVE INTO THE CONSUMER ELECTRONICS BUSINESS ROCKWELL'S MICHAEL BARNES SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER ACKNOWLEDGED THAT WE'RE EVALUATING ALL OF THAT HE SAID THAT AS THE WHOLE AREA OF MULTIMEDIA DEVELOPS WE HAVE THE TECHNOLOGIES AND THE ABILITY TO BRING TO MARKET NEW PRODUCTS IN THIS FIELD ROCKWELL IS DEVELOPING NEW DIGITAL PROCESSES TO BOOST THE CAPABILITIES AND CLARITY OF MOBILE COMMUNICATIONS THE COMPANY ALSO SEES COMMERCIAL APPLICATIONS FOR ITS GLOBAL POSITIONING EQUIPMENT WHICH COULD BE USED BY MOTORISTS FOR ELECTRONIC NAVIGATION ANALYSTS CAUTIONED HOWEVER THAT ROCKWELL'S PAST FORAYS INTO COMPUTER ELECTRONICS INVOLVING SALES OF HANDHELD CALCULATORS AND TELEVISIONS WERE A DISAPPOINTMENT WESTERN DIGITAL'S SALE OF THE 225000SQUARE FOOT PLANT NEAR ITS IRVINE HEADQUARTERS WOULD TAKE THE COMPANY OUT OF THE CHIPMAKING BUSINESS FOR THE FIRST TIME SINCE ITS FOUNDING 23 YEARS AGO PROCEEDS WOULD BE USED TO RETIRE BANK DEBT AND SIGNIFICANTLY IMPROVE ITS BALANCE SHEET A SPOKESMAN SAID INCLUDED IN THE PACT IS A THREEYEAR AGREEMENT UNDER WHICH THE BULK OF WESTERN DIGITAL'S CHIP NEEDS FOR ITS DISKDRIVE AND MICROCOMPUTER PRODUCTS WOULD BE MET THROUGH THE IRVINE PLANT WESTERN DIGITAL SAID THE DEAL WHICH IT EXPECTS TO COMPLETE BY MIDOCTOBER WON'T DIRECTLY AFFECT ITS CUSTOMERS THE WESTERN DIGITAL SPOKESMAN SAID THERE IS LIKELY TO BE A NET GAIN ON THE TRANSACTION ALTHOUGH THE FULL IMPACT HAS YET TO BE DETERMINED SOME ANALYSTS HAD URGED THE SALE AS A WAY TO LIGHTEN THE COMPANY'S DEBT WHICH STOOD AT 137 MILLION IN LONGTERM BANK DEBT AT THE END OF JUNE THE PROPOSED TRANSACTION IS THE FIRST SIGNIFICANT STEP TAKEN BY CHARLES A HAGGERTY SINCE HE WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER A MONTH AGO WESTERN DIGITAL REELING FROM A PRICE WAR IN THE DISKDRIVE BUSINESS REPORTED A LOSS OF 378 MILLION OR 107 A SHARE IN ITS FISCAL FOURTH QUARTER ENDED JUNE 30 AFTER THE ANNOUNCEMENT WESTERN DIGITAL SHARES GAINED 75 CENTS CLOSING AT 575 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ROCKWELL SHARES ALSO TRADED ON THE BIG BOARD CLOSED AT 35125 UNCHANGED 9308100107 930810 BUSINESS BRIEF MOBIL'S PLAN TO BUILD PLANT MEETS REJECTION BY SAUDI GOVERNMENT FAIRFAX VA MOBIL CORP SAID SAUDI ARABIA REJECTED THE COMPANY'S PLANS TO BUILD AN 800 MILLION CHEMICAL PLANT IN THE RED SEA TOWN OF YANBU IN A JOINT VENTURE WITH PRIVATE SAUDI INVESTORS FOR SEVERAL YEARS MOBIL AND ITS 5050 PARTNER ARABIAN CHEMICAL INVESTMENTS CORP WORKED ON PLANS TO BUILD A 20000BARRELADAY PLANT TO MAKE METHYL TERTIARY BUTYL ETHER OR MTBE A GASOLINE ADDITIVE THAT IS BECOMING WIDELY USED IN THE US TO MEET STRICTER ENVIRONMENTAL RULES MOBIL SAID THE PLANT WAS DUE TO BEGIN PRODUCTION BY 1995 WHEN THE COMPANY EXPECTED DEMAND IN THE US AND EUROPE TO GROW MTBE IS ALREADY A KEY COMPONENT TO CLEANERBURNING GASOLINE IN 39 MAJOR US METROPOLITAN AREAS IN THE WINTER THE REJECTION APPARENTLY CAME AS A SURPRISE TO THE JOINT VENTURE WHICH HAD BEGUN ENGINEERING AND PROCUREMENT WORK FOR THE PLANT A MOBIL SPOKESMAN SAID WE UNDERSTAND THE GOVERNMENT DOES NOT WANT THIS PROJECT TO GO FORWARD BECAUSE IT IS REEXAMINING ITS POLICIES FOR INVESTMENT IN THE PETROCHEMICAL INDUSTRY HE ADDED WE ARE DISAPPOINTED THE FINAL DECISION WAS MADE AT A SAUDI CABINET MEETING HELD BY KING FAHD THE APPARENT STUMBLING BLOCK WAS THAT THE PROJECT DIDN'T INCLUDE DIRECT PARTICIPATION BY THE SAUDI GOVERNMENT INDUSTRY EXECUTIVES FAMILIAR WITH THE KINGDOM SAID AN OFFICIAL SAUDI GOVERNMENT STATEMENT SAID THAT THE CABINET HAS DECIDED TO CANCEL THE PROJECT AND KING FAHD ORDERED THAT A FUTURE PLAN SHOULD BE CHARTED FOR INVESTMENT IN SUCH PROJECTS TO INCLUDE THE STATERUN OIL COMPANY MOBIL SAID ARABIAN CHEMICAL IS MADE UP OF 79 PRIVATESECTOR INSTITUTIONAL AND INDIVIDUAL SAUDI INVESTORS ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT ONE INVESTOR IS LOAY NAZER THE SON OF THE SAUDI OIL MINISTER HISHAM NAZER THE 800 MILLION COST WAS TO BE SPLIT BY THE TWO PARTNERS MOBIL SAID A SPOKESMAN SAID THAT 650 MILLION WAS SLATED FOR BUILDING THE PLANT AND THE REMAINDER WAS TO BE USED FOR WORKING CAPITAL STARTUP COSTS AND OTHER ITEMS THE MOBIL SPOKESMAN SAID IT WAS TOO EARLY TO SAY WHETHER THE COMPANY WOULD LOOK ELSEWHERE TO BUILD AN MTBE PLANT THIS JUST HAPPENED HE SAID WE NEED TIME 9308100106 930810 INTERNATIONAL NEW LEADERSHIP IN JAPAN PROMISES TO KEEP MANY LONGSTANDING POLICIES BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S NEW LEADERS TOOK OFFICE AND QUICKLY SAID THEY WOULD PRESERVE MANY OF THE COUNTRY'S LONGSTANDING POLICIES THE NEW FINANCE MINISTER SAID MONDAY THAT HE WAS COOL TO DEFICIT SPENDING WHICH MANY ECONOMISTS SAY IS NECESSARY TO BOOST JAPAN'S LAGGING ECONOMY BUT IS ANATHEMA TO THE POWERFUL FINANCE MINISTRY THE NEW TRADE MINISTER PROMISED TO RESIST US CALLS FOR MANAGED TRADE THE NEW AGRICULTURE MINISTER VOICED HIS SUPPORT FOR SELFSUFFICIENCY IN RICE SHORTHAND FOR OPPOSITION TO IMPORTS THE NEW PRIME MINISTER MORIHIRO HOSOKAWA CALLED FOR RESPONSIBLE CHANGE ADDING WE'LL CONTINUE WHAT SHOULD BE CONTINUED OF COURSE THE NEW GOVERNMENT THE FIRST TO EXCLUDE THE LIBERAL DEMOCRATIC PARTY IN 38 YEARS DOES PROMISE SOME MAJOR REFORMS THE SEVENPARTY COALITION IS UNITED BEHIND REFORMING JAPAN'S CORRUPT ELECTORAL SYSTEM WHICH COULD HAVE TREMENDOUS LONGTERM IMPACT ON JAPANESE POLITICS THE NEW CABINET INCLUDES A NEW POSITION TO OVERSEE THE EFFORT THE CABINET INCLUDES A RECORD THREE WOMEN WHO OVERSEE EDUCATION ENVIRONMENT AND ECONOMIC PLANNING POLICIES THE EDUCATION AND JUSTICE MINISTERS ARE NONPOLITICIANS ONLY ONE MEMBER FOREIGN MINISTER TSUTOMU HATA HAS SERVED IN A CABINET BEFORE STILL THE TOP POSTS ARE HELD BY MEMBERS OF THE JAPAN RENEWAL PARTY WHICH ONLY RECENTLY DEFECTED FROM THE LDP THE NEW GOVERNMENT HAS PLEDGED TO LOOSEN TIES WITH THE BUREAUCRACY YET HIROHISA FUJII THE NEW FINANCE MINISTER IS A FORMER FINANCE MINISTRY OFFICIAL HIROSHI KUMAGAI NEW HEAD OF THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY USED TO WORK FOR MITI THE NEW MINISTERS WERE APPARENTLY READING FROM NOTES PREPARED BY THE BUREAUCRATS CRACKED YOHEI KONO THE HEAD OF THE LDP IT'S THE SAME OLD STORY THE SOCIALISTS WHO HAVEN'T BEEN IN THE CABINET SINCE 1948 WON SIX POSTS BUT THE PARTY'S MORE MAINSTREAM RIGHT WING APPARENTLY WAS FAVORED ONE OF THE MOST IMPORTANT MEN IN THE RULING COALITION JAPAN RENEWAL PARTY COFOUNDER ICHIRO OZAWA DIDN'T GET A CABINET POST BUT IN JAPANESE POLITICS THE MOST IMPORTANT POWER TRADITIONALLY STANDS BEHIND THE THRONE MR OZAWA WAS ONE OF THOSE BEHINDTHESCENES OPERATORS BEFORE HE LEFT THE LDP IN JUNE AND ENGINEERED ITS DOWNFALL BY MANY ACCOUNTS MR OZAWA WAS THE STRATEGIST WHO PIECED TOGETHER THE GOVERNING ALLIANCE AND PLAYED A MAJOR ROLE IN PICKING THE CABINET SEVERAL MINISTERS ARE CONSIDERED OZAWA PROTEGES MR OZAWA APPARENTLY DIDN'T WANT A CABINET POST SO HE COULD HAVE A FREE HAND TO PULL STRINGS THROUGHOUT THE GOVERNMENT HE ALSO WAS CLOSE TO SOME OF THE LDP'S MOST CORRUPT BOSSES AND IS CONSIDERED BY MANY JAPANESE A SMUDGE ON THE NEW GOVERNMENT'S CLEAN IMAGE HERE IS THE JAPANESE CABINET LINEUP INITIALS REPRESENT THE JAPAN RENEWAL PARTY JRP AND SOCIALIST PARTY SP THE FOLLOWING WERE NAMED DIRECTORSGENERAL OF GOVERNMENT AGENCIES STATE MINISTERS 9308100105 930810 WHO'S NEWS INTERLEAF INC INTERLEAF INC WALTHAM MASS DAVID COLLARD CHIEF FINANCIAL OFFICER RESIGNED EFFECTIVE SEPT 3 TO BECOME VICE PRESIDENT OPERATIONS OF ZYMARK CORP A CLOSELY HELD HOPKINTON MASS MAKER OF LABORATORY ROBOTICS INTERLEAF A PUBLISHING SOFTWARE CONCERN SAID IT WILL SEARCH FOR A SUCCESSOR 9308100104 930810 MEDIA SENATOR URGES ANTITRUST PROBE OF CABLE TV BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE A NEW LAW GIVING LOCAL TV STATIONS THE RIGHT TO CHARGE CABLE SYSTEMS PROGRAMMING FEES VIRTUALLY ALL OF THE NATION'S BIGGEST CABLE OPERATORS HAVE ADAMANTLY REFUSED TO AGREE TO ANY CASH PAYMENTS NOW A US SENATOR WHO OVERSEES CABLE ISSUES IS URGING A FEDERAL INVESTIGATION INTO WHETHER THE CABLE COMPANIES HAVE COLLUDED AND VIOLATED ANTITRUST LAW IN THEIR LOCKSTEP REFUSAL TO MAKE THE PAYMENTS THE ACTION ADDS NEW TENSION TO THE FACEOFF BETWEEN BROADCASTERS AND CABLE COMPANIES OVER THE CABLE LAW'S MEASURE KNOWN AS RETRANSMISSION CONSENT SEN DANIEL K INOUYE HAS WRITTEN A LETTER TO BIG CABLE OPERATORS TELLING THEM HE HAS ASKED THE DEPARTMENT OF JUSTICE AND THE FEDERAL TRADE COMMISSION TO INVESTIGATE THE TACTICAL AND SEMANTIC UNIFORMITY AND PARALLEL STRATEGIES OF THE CABLE OPERATORS HE SAID HE FOUND THE TREND PARTICULARLY INTERESTING AND ADDED I TRUST I NEED NOT REMIND YOU THAT IT IS ONE THING IF YOUR PARALLEL STRATEGIES ARE A COINCIDENCE AND SOMETHING QUITE DIFFERENT IF THE SIMILARITIES RESULT FROM FACTORS OTHER THAN CHANCE WHILE AVOIDING AN EXPLICIT REFERENCE TO ANTITRUST LAW THE SENATOR FROM HAWAII WHO IS CHAIRMAN OF A SENATE COMMUNICATIONS SUBCOMMITTEE CLEARLY IMPLIED THAT SUCH ISSUES WERE RELEVANT DEMANDING AN EXPLANATION AND ADDING THAT HIS SUBCOMMITTEE MAY INVESTIGATE AT THE EARLIEST OPPORTUNITY BIG CABLE OPERATORS WHILE SAYING THEY HADN'T YET SEEN THE SENATOR'S LETTER DENIED THEY HAD IN ANY WAY COLLUDED ON RETRANSMISSION CONSENT CABLE OPERATORS GENERALLY ARGUE THAT THEY SHOULDN'T HAVE TO PAY FOR BROADCAST SIGNALS THAT HOUSEHOLDS ACROSS THE COUNTRY CAN GET FOR FREE CONTINENTAL CABLEVISION CORP CHAIRMAN AMOS HOSTETTER FOR ONE SAID IN APRIL THAT THE GOVERNMENT'S DECISION NOT TO ALLOW CABLE OPERATORS TO PASS ON INITIAL RETRANSMISSION COSTS FORCED HIS DECISION NOT TO PAY CASH SEN INOUYE DATED HIS LETTER AUG 6 AND SENT IT TO JOHN C MALONE CHAIRMAN OF TELECOMMUNICATIONS INC THE NATION'S LARGEST CABLE COMPANY SERVING 10 MILLION HOUSEHOLDS AND OTHER LARGE OPERATORS A TELECOMMUNICATIONS SPOKESWOMAN WHO SAID THE COMPANY HADN'T RECEIVED THE LETTER DECLINED TO COMMENT TELECOMMUNICATIONS WAS ONE OF THE FIRST CABLE COMPANIES TO TAKE AN ARDENT AND DECIDEDLY PUBLIC NOCASH STANCE LAST FALL FOLLOWED IN QUICK SUCCESSION BY VARIOUS RIVALS INCLUDING NO 2 TIME WARNER INC NO 3 CONTINENTAL CABLEVISION AND A RAFT OF OTHER TOP CABLE OPERATORS SEN INOUYE'S LETTER SAID FIVE OF THE SIX BIGGEST CABLE FIRMS AND 14 OF THE TOP 20 HAVE VOWED THAT UNDER NO CIRCUMSTANCES WOULD THEY AGREE TO MAKE CASH PAYMENTS TO THE BROADCAST STATIONS THE 14 CONSTITUTE 58 OF THE CABLE INDUSTRY THE BIG CABLE COMPANIES' STRIKINGLY IDENTICAL NEGOTIATING STANCES HAVE FRUSTRATED BROADCAST EXECUTIVES ESPECIALLY BECAUSE A NUMBER OF STATIONS HAVE BEEN ABLE TO SUCCESSFULLY NEGOTIATE CASH DEALS WITH CABLE SYSTEMS OWNED BY INDEPENDENT AND SMALL OPERATORS THE MAJOR CABLE OPERATORS HAVE CLEARLY COLLUDED ON A PRICEFIXING SCHEME CHARGES JIM KEELOR PRESIDENT OF LIBERTY CORP'S COSMOS BROADCASTING CORP WHICH OWNS SEVEN TV STATIONS I CAN UNDERSTAND THEIR HARDLINE POSITIONS BUT IT'S STRANGE THAT THEY ALL PARROT THE SAME LINE MR KEELOR FOR ONE CAN'T FIGURE OUT WHY THE LARGER CABLE OPERATORS WHICH GET VOLUME DISCOUNTS ON PROGRAMMING AND ARE IN BETTER FINANCIAL SHAPE CAN'T PAY HIS STATIONS CASH ONE COSMOS STATION RECENTLY SIGNED A THREEYEAR CASH DEAL WITH A SMALLER OPERATOR BUT GENERALLY THE BIGGER OPERATORS' POSITION HAS BEEN NO CASH IT'S THE SAME STORY WHEREVER YOU GO ALMOST VERBATIM MR KEELOR SAYS THEY PASS AROUND WHAT OUR OFFER IS HE CONTENDS THE CABLE PROVISION WAS PASSED BY CONGRESS LAST OCTOBER AT THE URGING OF BROADCAST EXECUTIVES AND AS PART OF THE 1992 LAW REREGULATING THE CABLE INDUSTRY WHILE CABLE SYSTEMS HAVE ALWAYS PAID CHANNELS SUCH AS CNN AND MTV A MONTHLY FEE FOR PROGRAMMING THEY HAD ALWAYS USED LOCAL STATIONS' PROGRAMMING AND HENCE THAT OF THE MAJOR BROADCAST NETWORKS FREE OF CHARGE THE NEW MEASURE LETS STATIONS DEMAND CASH OR SOME OTHER FORM OF COMPENSATION FROM LOCAL CABLE SYSTEMS IN EXCHANGE FOR THE RIGHT TO RETRANSMIT THE STATIONS' FARE WHEN CABLE EXECUTIVES WERE LOBBYING TO DEFEAT THE NEW LAW THEY INSISTED THAT IT WOULD ADD MORE THAN 1 BILLION TO CABLE BILLS BECAUSE THE FEES THEY WOULD HAVE TO PAY WOULD BE SO ONEROUS SEN INOUYE REMINDED MR MALONE IN HIS LETTER THAT TELECOMMUNICATIONS HAD GIVEN THE SENATE AN ANALYSIS THAT ESTIMATED CABLE OPERATORS WOULD HAVE TO PAY COMBINED FEES F 167 PER SUBSCRIBER EACH MONTH ON AVERAGE TO BROADCASTERS THE BIG CABLE FIRMS' SUBSEQUENT REFUSAL TO EVEN CONSIDER PAYING CASH IS PARTICULARLY INTERESTING IN THAT LIGHT THE LETTER NOTED INDEED IN A FEW MAJOR DEALS SIGNED THUS FAR THE BIG CABLE COMPANIES HAVE GONE TO ELABORATE LENGTHS TO AVOID EVEN THE APPEARANCE OF PAYING CASH IN RECENT MONTHS TELECOMMUNICATIONS AND OTHER TOP CABLE COMPANIES INCREASINGLY HAVE AGREED TO CARRY NEW CABLE SERVICES OWNED BY THE BROADCAT NETWORKS IN LIEU OF OUTRIGHT CASH PAYMENTS TO THE NETWORKS' STATION GROUPS CAPITAL CITIES/ABC INC RECENTLY SIGNED DEALS WITH FOUR CABLE OPERATORS LETTING THEIR CABLE SYSTEMS CARRY ABCOWNED STATIONS' PROGRAMMING IN EXCHANGE FOR ADDING THE COMPANY'S NEW ESPN2 SPORTS CHANNEL LAST WEEK SIX OTHER CABLETV OPERATORS AGREED TO CARRY FOX INC'S NEW BASIC CABLE NETWORK AND FORGO RETRANSMISSION PAYMENTS FOX IS A UNIT OF NEWS CORP 9308100103 930810 WHO'S NEWS JOHN HANCOCK FINANCIAL SERVICES JOHN HANCOCK FINANCIAL SERVICES BOSTON KATHLEEN FOLEY FELDSTEIN AN ECONOMIST WAS NAMED A DIRECTOR OF THIS FINANCIAL SERVICES AND MUTUAL INSURANCE FIRM SHE IS PRESIDENT OF ECONOMICS STUDIES INC AN ECONOMICS CONSULTING FIRM 9308100102 930810 WHO'S NEWS LECHTERS INC LECHTERS INC HARRISON NJ COFOUNDER ALBERT LECHTER WILL LEAVE THIS HOUSEWARE RETAILER NOV 1 TO PURSUE OTHER INTERESTS MR LECHTER 64 YEARS OLD WAS PRESIDENT AND CHIEF OPERATING OFFICER UNTIL JUNE 1992 WHEN HE BECAME VICE CHAIRMAN HE WILL CONTINUE TO BE A CONSULTANT TO THE COMPANY AND A MEMBER OF THE BOARD AND EXECUTIVE COMMITTEE 9308100101 930810 WHO'S NEWS USF&G CORP USF&G CORP BALTIMORE THIS PROPERTYCASUALTY INSURANCE COMPANY ELECTED TWO DIRECTORS INCREASING THE BOARD TO 14 ANNE MARIE WHITTEMORE 47 YEARS OLD IS A PARTNER WITH THE RICHMOND VA LAW FIRM OF MCGUIRE WOODS BATTLE & BOOTHE AND MICHAEL J BIRCK 55 IS PRESIDENT AND CHIEF EXECUTIVE OF TELLABS INC 9308100100 930810 EUROPEANS MAY BUY FEWER US STOCKS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON JUST WHEN IT LOOKED AS IF FOREIGN INVESTORS PARTICULARLY EUROPEANS WERE FALLING BACK IN LOVE WITH US STOCKS RECENT CHANGES IN EUROPE'S SEMIFIXED CURRENCY SYSTEM THREATEN TO BREAK OFF THE ROMANCE MONEY MANAGERS PREDICT THAT THE CHANGES WHICH PERMIT NINE EUROPEAN CURRENCIES TO FLUCTUATE MORE WIDELY AGAINST ONE ANOTHER WILL LEAD TO LOWER INTEREST RATES FASTER ECONOMIC GROWTH AND HIGHER STOCK PRICES IN EUROPE IF TRUE ALL THIS COULD REVERSE A SIXMONTH TREND THAT SAW OVERSEAS INVESTORS PILE INTO US STOCKS AFTER BEING NET SELLERS FOR A YEAR WE SEE THE US STOCK MARKET AS A RELATIVE UNDERPERFORMER IN LOCAL CURRENCY TERMS COMPARED TO EUROPEAN MARKETS SAYS NORBERT SJ ENSTE DEPUTY MANAGING DIRECTOR AT COMMERZ INTERNATIONAL CAPITAL MANAGEMENT GMBH IN FRANKFURT WHILE IN THE US WE SEE ONLY VERY MODERATE POTENTIAL FOR SHORTTERM RATES TO GO LOWER WE CONTINUE TO SEE INTEREST RATES IN EUROPE COMING DOWN THUS PROVIDING ONE STRONG ARGUMENT IN FAVOR OF EUROPEAN EQUITIES EUROPEAN STOCK MARKETS ARE ALREADY REACTING TO THE ANTICIPATION OF LOWER INTEREST RATES YESTERDAY BRITISH SHARES CLOSED AT A RECORD HIGH FOR THE SECOND CONSECUTIVE TRADING DAY AND GERMAN STOCKS CLOSED AT THEIR HIGH FOR THE YEAR ALTHOUGH THE FRENCH STOCK MARKET FELL 05 IT HIT A RECORD HIGH FRIDAY LIKE MANY OTHER EUROPEAN FUND MANAGERS COMMERZ INTERNATIONAL A UNIT OF GERMANY'S COMMERZBANK AG IS UNDERWEIGHTING ITS HOLDING OF US STOCKS BY 20 COMPARED TO STANDARD BENCHMARKS WHAT'S MORE THE FIRM IS RUNNING DOWN ITS CASH POSITIONS TO BUY FRENCH EQUITIES ALTHOUGH IT IS HEDGING AGAINST FURTHER DECLINES IN THE FRANC COMMERZ INTERNATIONAL IS ALSO SELLING SOME JAPANESE STOCKS TO BUY GERMAN STOCKS THE BIGGEST CASE MR ENSTE SEES FOR A EUROPEAN INVESTING IN THE US IS THE PROSPECT OF A STRONGER DOLLAR HE EXPECTS A RISE OF ABOUT 3 BY THE END OF NEXT MONTH WE WOULD HAVE BEEN EVEN MORE UNDERWEIGHT IF IT WEREN'T FOR THE POSITIVE OUTLOOK FOR THE DOLLAR HE SAYS FOREIGNERS PURCHASED A NET 51 BILLION OF US SHARES IN THE FIRST QUARTER UP FROM A NET 43 BILLION IN 1992'S FOURTH QUARTER ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP EUROPEANS LED THE WAY ACCOUNTING FOR 65 OF ALL PURCHASES FROM JANUARY THROUGH MARCH BRITISH INVESTORS WERE THE BIGGEST BUYERS GOBBLING UP 13 BILLION OF US SHARES NEXT CAME THE SWISS WITH 11 BILLION AND GERMANS WHO BOUGHT A NET 290 MILLION THEIR LARGEST COMMITMENT TO THE US EQUITY MARKET IN NEARLY SEVEN YEARS SAYS DAVID STRONGIN DIRECTOR OF INTERNATIONAL FINANCE AT THE SIA IN NEW YORK MEANWHILE JAPANESE CANADIAN AND HONG KONG INVESTORS WERE NET SELLERS OF US STOCKS DURING THE PERIOD THE SEPTEMBER TO APRIL BUYING REVERSED THE TREND OF THE 12 MONTHS BEGINNING SEPTEMBER 1991 DURING WHICH FOREIGN INVESTORS SOLD NEARLY 11 BILLION OF US SHARES IN FACT EUROPEAN INVESTORS HAVE BEEN NET SELLERS OF US STOCKS IN 15 OF THE 21 QUARTERS SINCE THE OCTOBER 1987 WORLDWIDE STOCKMARKET CRASH THE SIA'S MR STRONGIN SAYS THE CRASH REPRESENTED A PIVOTAL POINT IN EUROPEAN INVESTOR ATTITUDES TOWARD THE US MARKET FROM THE BEGINNING OF 1980 TO JUST BEFORE THE CRASH EUROPEANS BOUGHT A NET 381 BILLION OF US EQUITIES OR A QUARTERLY AVERAGE OF 12 BILLION IN THAT DECADE HE SAYS FOREIGN INVESTORS ACCOUNTED FOR 21 OF ALL PURCHASES OF US SHARES SINCE THEN HOWEVER THE FOREIGN INVESTOR HAS TAKEN A TOPSYTURVY ONAGAINOFFAGAIN APPROACH TO ACQUIRING US EQUITIES SAYS MR STRONGIN ONE REASON IS THE DOLLAR'S FALL FROM RECORD HIGHS IN THE MID1980S TO RECORD LOWS LATELY ROSALIND ALTMANN GLOBAL EQUITY STRATEGIST AT COUNTY NATWEST INVESTMENT MANAGEMENT LTD IN LONDON SAYS EUROPEANS BECAME BUYERS LATE LAST YEAR AND EARLY THIS YEAR BECAUSE THEIR PORTFOLIOS WERE MOSTLY UNDERWEIGHTED IN US STOCKS THEY ALSO EXPECTED A STRONGER DOLLAR WHICH WOULD MAKE THEIR US ASSETS WORTH MORE IN LOCAL CURRENCY AS PERCEPTIONS OF EUROPEAN GROWTH AND INTEREST RATES WERE REVISED DOWNWARD THE EXPECTATION GOING ALONG WITH THAT WAS THAT THE DOLLAR WOULD RALLY ALONG WITH US EQUITIES SHE SAYS SO YOU'D GET A CURRENCY GAIN ALONG WITH A CAPITAL GAIN IN US MARKETS IN ADDITION EUROPEAN MONEY MANAGERS WERE PLAYING CATCHUP THEY MISSED THE RALLY IN US STOCKS AND CONTINUALLY BELIEVED OVER THE PAST TWO YEARS THAT US EQUITIES WERE OVERVALUED WHAT THEY DIDN'T REALIZE WAS THE IMPACT THAT FALLING INTEREST RATES WOULD HAVE ON THE MARKET SAYS MS ALTMANN BUT LIKE OTHERS IN EUROPE SHE IS NOW SLIGHTLY UNDERWEIGHTING US STOCKS WE THINK WHAT'S HAPPENED WITH THE ERM EXCHANGE RATE MECHANISM IS MORE POSITIVE FOR EUROPEAN EQUITIES THAN IT IS FOR THE US SAYS MS ALTMANN ADDING THAT THE DOLLAR HAS ALREADY GONE UP SOME SHE ISN'T ALONE A SURVEY CONDUCTED AFTER THE ERM CHANGES ON AUG 2 OF 98 BRITISH FUND MANAGERS SHOWS 30 WOULD DECREASE HOLDINGS OF US STOCKS ONLY 13 INDICATED THEY WOULD BUY MORE THE FIGURES BASICALLY SHOW THAT MANAGERS HAVE BECOME MORE NEGATIVE TOWARD US EQUITIES SINCE THE FIRST QUARTER SAID ANDREW MILLIGAN AN ECONOMIST AT SMITH NEW COURT LTD THE SURVEY CONDUCTED BY THAT FIRM AND THE GALLUP ORGANIZATION ALSO INDICATES THAT A LARGE NUMBER OF BRITISH FUND MANAGERS PLAN TO INCREASE THEIR HOLDINGS OF CONTINENTAL EUROPEAN AND BRITISH STOCKS NOT EVERYONE IN EUROPE BUYS THE DUMPAMERICA LINE NICK CARN CHIEF INVESTMENT OFFICER AT DRAYCOTT PARTNERS LONDON LIKES CONTINENTAL EUROPEAN STOCKS BUT RATHER THAN REDUCE HIS US PORTFOLIO TO PLACE MORE MONEY IN EUROPE HE SAID HE WOULD SHIFT FUNDS FROM THE BRITISH MARKET I DON'T THINK THE US IS A HIGHRISK MARKET SAID MR CARN THE US ECONOMY IS POISED FOR A SUSTAINED PERIOD OF SLOW LOW INFLATIONARY GROWTH THAT'S PARTLY REFLECTED IN VALUATIONS BUT THE OUTLOOK STILL LOOKS OK MEANWHILE AMERICANS CONTINUED TO FILL THEIR PORTFOLIOS WITH FOREIGN SECURITIES IN THE FIRST QUARTER BUYING A NET 84 BILLION OF STOCKS AND A QUARTERLY RECORD 19 BILLION OF BONDS PARTICULARLY BRITISH AND CANADIAN BONDS MR STRONGIN OF THE SIA SAYS THE OVERSEAS ATTRACTION WAS OBVIOUS FOREIGN STOCK MARKETS WERE DOING BETTER THAN THE US AND YIELDS ON US FIXEDINCOME SECURITIES WERE AT THEIR LOWEST IN DECADES AMERICAN INVESTORS HAVE DONE WELL IF THEY HEDGED THE CURRENCY THEY'VE DONE BRILLIANTLY SAYS MS ALTMANN OF COUNTY NATWEST THE BEST THING US INVESTORS COULD HAVE DONE THIS YEAR IS TO BUY ANYTHING IN JAPAN IN DOLLAR TERMS THE EQUITY MARKET IS UP 50 THE BOND MARKET 25 9308100099 930810 ECONOMY US RENEWS ITS EFFORTS TO OVERHAUL GRAZING POLICY CALLING FOR HIGHER FEES BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION RENEWED ITS EFFORT TO OVERHAUL FEDERAL GRAZING POLICY CALLING FOR SHARPLY HIGHER FEES AND STIFFER LANDUSE REQUIREMENTS FOR RANCHERS UNDER THE PROPOSAL WHICH MET WITH OPPOSITION FROM RANCHERS AND QUALIFIED PRAISE FROM CONSERVATION GROUPS THE FEE CHARGED FOR GRAZING CATTLE AND SHEEP ON FEDERAL LANDS WOULD RANGE FROM 351 TO 505 PER ANIMAL UNIT MONTH AN ANIMAL UNIT MONTH IS THE AMOUNT OF FORAGE NEEDED TO SUSTAIN A COW AND HER CALF OR FIVE SHEEP FOR A MONTH THE CURRENT FEE IS 186 EVEN WHEN THE INCREASE IS FULLY PHASED IN AFTER THREE YEARS THE FEE WOULD REMAIN BELOW THE LEVEL CHARGED ON MOST PRIVATE LANDS YESTERDAY'S ANNOUNCEMENT BY THE INTERIOR DEPARTMENT AND AGRICULTURE DEPARTMENT'S FOREST SERVICE MARKS THE SECOND APPROACH FOR THE WHITE HOUSE ON THE ISSUE IN HIS BUDGET PROPOSAL IN FEBRUARY PRESIDENT CLINTON CALLED FOR RAISING THE FEES CHARGED TO RANCHERS MINERS AND OTHERS WHO USE FEDERAL RESOURCES BUT HE PULLED BACK IN THE FACE OF PROTESTS FROM DEMOCRATIC SENATORS FROM WESTERN STATES THAT RETREAT ENGENDERED SKEPTICISM ABOUT THE ADMINISTRATION'S COMMITMENT TO CHANGING LANDUSE POLICY BUT INTERIOR SECRETARY BRUCE BABBITT ASSERTED THAT THE NEW PROPOSALS SHOULD HELP WIN OVER THE DOUBTERS WE'RE HERE TODAY TO DELIVER UPON PRESIDENT CLINTON'S COMMITMENT FOR PUBLIC LAND REFORM HE SAID AT A NEWS CONFERENCE THE PROPOSAL WOULD RAISE ABOUT 30 MILLION IN ADDITIONAL REVENUE FOR THE TREASURY OVER FOUR YEARS LESS THAN THE 48 MILLION THE ADMINISTRATION SAID ITS BUDGET PROPOSAL WOULD HAVE RAISED AND THOUGH THE NEW PLAN WOULDN'T REQUIRE ACTION BY CONGRESS IT'S STILL A LONG WAY FROM BECOMING A FINAL POLICY THE PLAN IS NOW SUBJECT TO SEVERAL ROUNDS OF PUBLIC COMMENT AND MEETINGS ACROSS THE WEST WHERE BOTH SIDES IN THE DEBATE PLAN TO PRESS FOR CHANGES MOREOVER THERE'S A GOOD POSSIBILITY ANY CHANGE EVENTUALLY WOULD WIND UP IN THE COURTS THE PROPOSED INCREASE IN GRAZING FEES ALSO FACES ATTACK FROM CONGRESS SENS MALCOLM WALLOP R WYO AND BEN NIGHTHORSE CAMPBELL D COLO HAVE INTRODUCED INDUSTRYSUPPORTED LEGISLATION THAT WOULD RAISE THE GRAZING FEE LESS THAN THE ADMINISTRATION PROPOSES RANDALL BREWER PRESIDENT OF THE PUBLIC LANDS COUNCIL SAID THE WHITE HOUSE PROPOSAL COULD FORCE AS MANY AS TWOTHIRDS OF WESTERN PUBLIC LAND RANCHERS OUT OF BUSINESS AND HARM THE WESTERN ENVIRONMENT IN THE PROCESS JOE ETCHART A MONTANA RANCHER CALLED THE ANNOUNCEMENT DEVASTATING NEWS VERY DISAPPOINTING MR BABBITT INSISTED THAT THE PLAN REPRESENTS AN EFFORT TO KEEP RANCHERS IN BUSINESS MANY IF INDEED NOT MOST RANCHERS ARE GOOD STEWARDS AND THEIR MANAGEMENT OF THE LAND IS PROBABLY IN MOST CASES THE BEST ENVIRONMENTAL USE OF THAT LAND HE SAID OFFICIALS SAID THE PROPOSED FEDERAL FEE WOULD REMAIN BELOW THOSE CHARGED FOR GRAZING ON PRIVATE LANDS BECAUSE UNLIKE THEIR COUNTERPARTS ON PRIVATE LANDS RANCHERS ON PUBLIC LANDS TYPICALLY HAVE TO PUT UP THEIR OWN FENCES AND MAKE OTHER IMPROVEMENTS ALSO FEDERAL LAND IN MANY CASES IS LESS VALUABLE THAN PRIVATE ACREAGE THE FEE COULD BE CHANGED AS THE VALUE OF FORAGE FLUCTUATES BUT IT COULDN'T VARY MORE THAN 25 IN ANY YEAR WHILE PRAISING THE PLAN AS A GOOD START TOWARD A GRAZINGPOLICY OVERHAUL ENVIRONMENTAL GROUPS CRITICIZED CERTAIN ASPECTS OF IT NOTABLY THAT IT WOULDN'T PROHIBIT GRAZING ON LANDS THAT ARE IN EXTREMELY POOR CONDITION OR THAT ARE DEEMED TOO VALUABLE AS A WILDLIFE REFUGE OR IN SOME OTHER CAPACITY THE PLAN CALLS FOR ALLOWING SPORTS ENTHUSIASTS ENVIRONMENTAL GROUPS AND LOCAL BUSINESS OWNERS TO PARTICIPATE ALONG WITH RANCHERS AND GOVERNMENT OFFICIALS ON BOARDS THAT ADVISE THE GOVERNMENT ON GRAZING DECISIONS RANCHERS ALSO WOULD BE REQUIRED TO MEET STRINGENT NEW NATIONAL ECOSYSTEM MANAGEMENT STANDARDS THAT WOULD FOCUS ON THE HEALTH OF RIPARIAN AREAS THAT IS THE STRIPS OF LAND ALONG STREAMS AND LAKES THE LENGTH OF A GRAZING PERMIT WOULD DEPEND ON THE ENVIRONMENTAL MANAGEMENT PRACTICES OF THE RANCHER AND NEW FEES WOULD DISCOURAGE RANCHERS FROM TRANSFERRING THEIR PERMITS IN A PROVISION LIKELY TO BE CONTROVERSIAL RANCHERS NO LONGER WILL BE ABLE TO SEEK TITLE TO WATER RIGHTS ON INTERIOR DEPARTMENT LANDS WHERE THEY HAVE FINANCED WATERRELATED PROJECTS THAT GENERALLY IS ALREADY THE CASE ON FOREST SERVICE LANDS THE FEDERAL GOVERNMENT WOULD HOLD TITLE TO PERMANENT STRUCTURES SUCH AS FENCES AND WELLS ALTHOUGH THE GOVERNMENT WOULD COMPENSATE RANCHERS FOR THE COST OF AGREEDUPON IMPROVEMENTS 9308100098 930810 INTERNATIONAL NATO MOVES CLOSER TO AIR RAIDS IF SERBS CONTINUE SIEGE OF SARAJEVO BY WALL STREET JOURNAL REPORTERS MARTIN DU BOIS IN BRUSSELS AND THOMAS E RICKS IN WASHINGTON NATO DEMANDED THAT SERBS LIFT THEIR SIEGE OF SARAJEVO OR RISK ATTACK THE ULTIMATUM WAS THE CLEAREST THREAT YET OF MILITARY ACTION BY EUROPE AND THE US SINCE THE YUGOSLAV CIVIL WAR ERUPTED MORE THAN TWO YEARS AGO IN THEIR SECOND MEETING IN A WEEK THE 16 MEMBERS OF THE NORTH ATLANTIC TREATY ORGANIZATION MOVED A KEY STEP CLOSER TO LAUNCHING AIR STRIKES AGAINST SERBIAN FORCES ENCIRCLING SARAJEVO NATO GOVERNMENT REPRESENTATIVES APPROVED A LIST OF POSSIBLE MILITARY TARGETS FOR BOMBING RAIDS AND AGREED THAT A STRIKE WOULD FIRST BE SUBJECT TO THE AUTHORIZATION OF UNITED NATIONS SECRETARYGENERAL BOUTROS BOUTROSGHALI LET NO ONE DOUBT THAT THIS ALLIANCE HAS THE POLITICAL WILL TO CARRY THROUGH ITS WARNING SAID A STONEFACED MANFRED WOERNER THE NATO SECRETARYGENERAL OUR OBJECTIVE IS VERY CLEAR IT IS TO RELIEVE THE SIEGE OF SARAJEVO AND OTHER AREAS IN BOSNIAHERZEGOVINA AND TO END THE HUMAN SUFFERING THERE I THINK IT'S A PRETTY DRAMATIC AGREEMENT DECLARED A SENIOR OFFICIAL IN THE CLINTON ADMINISTRATION IT'S IMPORTANT HISTORICALLY FOR THE DEVELOPMENT OF NATO HE ADDED BECAUSE IT CALLS FOR OFFENSIVE ACTION BEYOND THE ALLIANCE'S BORDERS THE QUESTION NOW IS WHAT SERB ACTIONS WOULD PROMPT THE AIR STRIKES THE OFFICIAL SAID SUCH TRIGGER POINTS WOULD INCLUDE RENEWED HEAVY SHELLING OF SARAJEVO INTERRUPTION OF THE HUMANITARIAN SUPPLIES BEING SHIPPED TO THE CITY AND CUTOFFS OF THE CITY'S FUEL ELECTRICITY OR WATER BEFORE LAUNCHING A STRIKE NATO WOULD MEET AGAIN AND THE UN WOULD BE CONSULTED BUT THE ADMINISTRATION OFFICIAL SUGGESTED THAT IF NATO VOTED IN FAVOR OF TAKING ACTION AUTHORIZATION BY UN CHIEF BOUTROSGHALI WOULDN'T LIKELY BE A MAJOR OBSTACLE HE DOES WORK FOR THE SECURITY COUNCIL AND THE MEMBERSHIP OF THE SECURITY COUNCIL HAS A BIG OVERLAP WITH NATO THE OFFICIAL SAID NATO OFFICIALS ALSO EXPRESSED CONFIDENCE MR BOUTROSGHALI WOULD AUTHORIZE THE USE OF NATO AIR POWER IF HUMANITARIAN AID ISN'T ALLOWED TO REACH SARAJEVO SOON DO YOU DOUBT HE MR BOUTROSGHALI WILL GIVE US HIS APPROVAL IF THE DIRE SITUATION IN AND AROUND SARAJEVO CONTINUES ASKED MR WOERNER WE'RE ABSOLUTELY SERIOUS AND I HOPE NOBODY WILL TEMPT US ADDED THE FORMER GERMAN DEFENSE MINISTER WHO HAS LONG ADVOCATED WESTERN MILITARY INTERVENTION IN THE FORMER YUGOSLAVIA IN YESTERDAY'S MEETING THE ALLIES REJECTED A PROPOSAL TO ISSUE A FORMAL DOCUMENT WARNING THE SERBS THAT AIR ATTACKS WERE IMMINENT THE OFFICIAL SAID INSTEAD AN ENVOY WOULD BE SENT TO TELL ALL SIDES IN BOSNIA THAT SUCH RAIDS WERE IMMINENT THE INITIAL FOCUS OF THE RAIDS WOULD BE THE AREA SURROUNDING SARAJEVO THE ADMINISTRATION OFFICIAL SAID FOLLOWING A PROPOSAL MADE BY NATO'S MILITARY COMMITTEE AFTER MEETING THROUGHOUT THE WEEKEND THE ALLIES APPROVED A THREEPHASE APPROACH UNDER WHICH THE FIRST AIR STRIKE WOULD BE LIMITED THE SECOND STAGE OF RAIDS WOULD HIT TACTICAL BATTLEFIELD TARGETS SUCH AS ARTILLERY EMPLACEMENTS FINALLY IF SERB BEHAVIOR DIDN'T CHANGE A BROADER RANGE OF STRATEGIC STRIKES WOULD BE CARRIED OUT AGAINST MUNITIONS DUMPS AND COMMANDANDCONTROL CENTERS WHETHER THE STRIKES OCCUR DEPENDS ON SERB BEHAVIOR THE OFFICIAL EMPHASIZED YOU TELL ME WHAT THE SERBS ARE DOING AND I'LL TELL YOU WHAT WILL HAPPEN HE SAID BUT HE INDICATED THAT MUCH OF WHAT HAS OCCURRED IN RECENT MONTHS WOULDN'T BE TOLERATED FOR MONTHS THE INHABITANTS OF THE BOSNIAN CAPITAL HAVE BEEN SUBJECT TO ALMOST DAILY SHELLING AND HAVE ENDURED FOOD SHORTAGES AND WATER AND ELECTRICITY CUTS UN RELIEF CONVOYS MEANWHILE HAVE BEEN BARRED FROM ENTERING THE CITY BY ENCIRCLING SERBIAN FORCES IN RECENT WEEKS THE SIEGE OF SARAJEVO HAD BECOME A PAINFUL REMINDER OF THE WEST'S INABILITY TO STOP THE YUGOSLAV CONFLICT WHICH PITS SERBS CROATS AND MUSLIMS AGAINST EACH OTHER IN A VICIOUS ETHNIC WAR UNSPONSORED PEACE TALKS BETWEEN BOSNIAN SERBS CROATS AND MUSLIMS REMAINED DEADLOCKED IN GENEVA SERBIAN OFFICIALS CONTINUED TO SEND MIXED SIGNALS AS TO THEIR INTENTIONS REGARDING SARAJEVO PROMPTING A SENIOR US OFFICIAL IN BRUSSELS TO SAY THAT WASHINGTON IS VERY SKEPTICAL OF THE CHANCES FOR A RAPID PULLOUT OF SERB FORCES AROUND SARAJEVO MR WOERNER AND NATO DIPLOMATS STRESSED THAT THEIR AMBITION REMAINS TO REACH A NEGOTIATED SETTLEMENT TO THE BOSNIA WAR NATO TOOK A MAJOR STEP TODAY TO PUT NATO AIR POWER AT THE SERVICE OF DIPLOMACY SAID STEPHEN OXMAN ASSISTANT US SECRETARY OF STATE FOR EUROPEAN AFFAIRS NO ONE HERE SEES HIMSELF AS A LIBERATOR OF ANYTHING A GERMAN OFFICIAL SAID THE AIM IS TO HELP THE NEGOTIATIONS IN GENEVA AND ENFORCE THE UN HUMANITARIAN RESOLUTIONS BUT WHETHER THE NATO THREAT WILL REACH THAT OBJECTIVE REMAINS UNCLEAR EQUALLY UNCLEAR IS WHETHER THE UN WILL AUTHORIZE MILITARY ACTION THAT MIGHT UNDERMINE THE PEACE NEGOTIATIONS A SIGN OF A COMMON SENSE OF PURPOSE OF THE UN AND NATO OFFICIALS HERE SAID HAS BEEN THE CLOSE COOPERATION IN RECENT DAYS BETWEEN OFFICIALS AT NATO HEADQUARTERS IN BELGIUM AND COMMANDERS OF THE UN PEACEKEEPING FORCE ON THE GROUND IN BOSNIA THE LIST OF POSSIBLE TARGETS FOR NATO AIR STRIKES WHICH NATO OFFICIALS DECLINED TO DIVULGE WAS PUT TOGETHER JOINTLY BY BOTH ORGANIZATIONS DIPLOMATS SAID OVER THE PAST WEEK WE'VE SEEN UNPRECEDENTED COLLABORATION BETWEEN NATO AND UNPROFOR THE UN PROTECTION FORCE MR OXMAN SAID THE FOURHOUR MEETING ALSO SAW A RAPPROCHEMENT BETWEEN EUROPEAN NATO MEMBERS AND THE US WHICH HAS TAKEN THE INITIATIVE OF THREATENING AIR STRIKES AGAINS THE SERBS DURING LAST WEEK'S MEETING BOTH SIDES HAD CLASHED FRANCE BRITAIN AND CANADA WHICH HAVE THOUSANDS OF GROUND TROOPS STATIONED UNDER THE UN BANNER IN THE FORMER YUGOSLAVIA INSISTED ON CLOSE COOPERATION WITH THE UN WHILE THE US WHICH HAS NO GROUND TROOPS IN THE REGION ADVOCATED AN AUTONOMOUS NATO DECISION TO LAUNCH AIR STRIKES YESTERDAY THE US FRANCE BRITAIN AND CANADA SUCCESSFULLY PUSHED FOR A COMPROMISE AGREEING THAT THE FIRST USE OF AIR POWER WOULD BE AUTHORIZED BY THE UN SECRETARYGENERAL WHAT WOULD HAPPEN WITH POSSIBLE FURTHER STRIKES IS UNCLEAR BUT DIPLOMATS SAID THERE'S AN UNDERSTANDING SUCH DECISIONS WOULD BE DELEGATED TO NATO AND UN COMMANDERS THE ALLIANCE HAS ABOUT 60 FIGHTERBOMBERS STATIONED ON AIR BASES IN ITALY AND AIRCRAFT CARRIERS IN THE ADRIATIC WHICH NATO OFFICIALS SAID ARE OPERATIONAL NATO IS READY TO ACT MR WOERNER SAID 9308100097 930810 HEY DEAR I WAS PLAYING A GAME AT A FAIR AND THINKING OF YOU' BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL SAN JOSE CALIF SIMON ORTIZ SQUEEZES THE TRIGGER AND PAINT SPLOTCHES EXPLODE AROUND A LUMBERING FIGURE IN CAMOUFLAGE FATIGUES AND HOCKEY GLOVES ON A NARROW STAGE THE SLIGHTLY MOVING TARGET WEARS A RUBBER MASK WHOSE FACE HAS BEEN RIPPED AWAY TO REVEAL A PLASTIC FACE PLATE SIMILAR TO A WELDER'S MASK A YELLOW PAINT PELLET SCORES A BULL'SEYE I HIT HIM IN THE FACE MR ORTIZ EXULTS EARLY LAST WEEK THAT WOULD HAVE BEEN SADDAM HUSSEIN HE HAD BLASTED BUT BY THE END OF THE WEEK THE COUNTY HUMAN RELATIONS OFFICE HAD CRACKED DOWN ON THE SHOOT THE GEEK GAME AT THE SANTA CLARA COUNTY FAIR HENCE THE FACIAL SURGERY THOUGH THE OFFICE HAD RECEIVED NO COMPLAINTS IT ASKED THE FAIR TO CHANGE THE GAME ON THE GROUND THAT IT COULD BE OFFENSIVE TO ARABAMERICANS AND HUMAN DIGNITY IT'S A RIDICULOUS GAME WE HAVE ENOUGH VIOLENCE IN THE WORLD SAYS NORMA MENCACCI AN ASSISTANT MANAGEMENT ANALYST WITH THE OFFICE WHICH SHE SAYS HAS A MANDATE TO BRING PEACE AND HARMONY TO THE COMMUNITY TOM WHALEN THE OWNER OF THE SHOOT THE GEEK SHOW SAYS HE HAS TRAVELED AROUND THE COUNTRY WITH IT FOR SEVERAL YEARS AND HAS NEVER HAD A PROBLEM ANYWHERE ELSE I DON'T WANT TO GET ANYONE UPSET HE SAYS IT'S JUST A FUN GAME SO INSTEAD OF GETTING A CRACK AT THE IRAQI LEADER TWO BUCKS GETS YOU 10 SHOTS AT WHOEVER YOU WANT IT TO BE SAYS RICHARD VALENCIA ONE OF SEVERAL TARGETS WHO DON A MIX OF BASEBALL FOOTBALL MOTOCROSS AND HOCKEY PROTECTIVE GEAR SQUEEZE INTO FATIGUES AND HEADGEAR AND SPEND TWOHOUR SHIFTS BEING SHOT AT SOMETIMES IT'S YOUR GIRLFRIEND SOMETIMES IT'S YOUR BOYFRIEND YOUR SON YOUR DAUGHTER MR VALENCIA GETS 175 A WEEK AND THE PLEASURE OF STICKING A GARDEN HOSE INTO HIS SHIRT EVERY 20 MINUTES OR SO TO WARD OFF THE EFFECTS OF PADDING AROUND IN SO MUCH GEAR WITH THE TEMPERATURE IN THE 80S HE THINKS HIS JOB IS LESS SILLY THAN THE FLAP OVER IT ANY MASK SOMEONE IS GOING TO HAVE A PROBLEM WITH HE SAYS DOUSING HIMSELF BETWEEN PERFORMANCES IF I PUT ON A DEVIL MASK SOME CHRISTIAN IS GOING TO COMPLAIN THAT I'M PROMOTING SATANISM MR ORTIZ WHO HAD BEEN UNAWARE OF THE CONTROVERSY JUST WANTED TO VENT SOME STEAM YOU CAN SHOOT SOMEONE WITHOUT GOING TO JAIL HE BEAMS WOULD SADDAM HUSSEIN HAVE OFFENDED HIM SAYS MR ORTIZ I WOULD HAVE BOUGHT MORE BULLETS 9308100096 930810 COMMODITIES GOLD FUTURES RALLY ON COMEX REGAINING SOME OF LOSSES FOLLOWING LAST WEEK'S SHARP SELLOFF BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES RALLIED REGAINING A PORTION OF THEIR LOSSES FOLLOWING THE MARKET'S SHARP SELLOFF LATE LAST WEEK ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR DECEMBER DELIVERY SHOT UP 690 TO 38680 AN OUNCE IN MOSTLY TECHNICAL TRADING SILVER FOR DECEMBER DELIVERY JUMPED 147 CENTS TO 4775 AN OUNCE ON THE COMEX MONDAY'S GAINS IN GOLD HOWEVER RECOUPED LITTLE MORE THAN A QUARTER OF THE COMBINED LOSSES OF THURSDAY AND FRIDAY WHEN THE ACTIVELY TRADED DECEMBER CONTRACT SKIDDED 2260 AND 80 CENTS RESPECTIVELY AMID HEAVY SELLING BY COMMODITY FUNDS COMMODITY FUNDS ARE MANAGED POOLS OF INVESTORS' MONEY AND ANY LARGESCALE LIQUIDATION OF POSITIONS BY SUCH FUNDS CAN AFFECT FUTURES PRICES GREATLY THE KEY QUESTION IS WHETHER LAST WEEK'S DECLINE IN GOLD REPRESENTS A CHANGE IN TREND OR JUST A BRUTAL CORRECTION SAID DENISE GIORDANO SENIOR METALS TRADER FOR SWISS BANK IN NEW YORK I BELIEVE THIS IS ONLY A CORRECTION ONE THAT SHOOK OUT THE WEAK LONG BULLISH POSITIONS IN THE MARKET THE SWISS BANK BULLION TRADER SAID SHE EXPECTS TO SEE GOLD FLIRT WITH 400 AGAIN THIS YEAR POSSIBLY REACHING A HIGH OF 415 IF IT FELL BELOW 361 I'D BECOME BEARISH AND LOOK FOR NEW LOWS FOR THE YEAR TRADERS SAID THAT MANY LONGERTERM INVESTORS APPEAR TO VIEW THE RECENT RETREAT IN GOLD PRICES AS A BUYING OPPORTUNITY THEY CITED SUBSTANTIAL OVERNIGHT BUYING FROM JAPAN AS A TRIGGER TO YESTERDAY'S RALLY IN NEW YORK AN APPRECIATING YEN MAKES GOLD WHICH IS PRICED IN DOLLARS AN ATTRACTIVE BUY FROM A CURRENCY STANDPOINT TRADERS SAID FOR THOSE WANTING TO HOLD GOLD IN THEIR PORTFOLIOS AND WHO MIGHT HAVE MISSED GETTING IN ON THE FIRST RALLY THESE PRICES ARE BEING SEEN AS AN OPPORTUNITY TO BUY AT A LEVEL THAT HAS LESS RISK ON THE DOWNSIDE SAID GERARD POLLINO A SENIOR GOLDFUTURES TRADER WITH MILLENIUM FUTURES GROUP INC IN NEW YORK MR POLLINO PREDICTED THAT GOLD PRICES WOULD STABILIZE BETWEEN 375 AND 395 THIS MONTH BEFORE ANY NEW ATTEMPT IS MADE TO BREACH 400 AN OUNCE GOLD PROPELLED BY INSTABILITY IN THE EUROPEAN MONETARY SYSTEM'S CURRENCY GRID HAD PENETRATED THAT PSYCHOLOGICALLY SIGNIFICANT LEVEL EARLY LAST WEEK SOARING TO A NEW INTRADAY HIGH FOR THE DECEMBER CONTRACT OF 414 ON AUG 2 BUT THE APPARENT RESOLUTION OF THE EMS CURRENCY CRISIS COMBINED WITH PERSISTENTLY WEAK OIL PRICES AND RETREATING GRAIN PRICES SPARKED THE BIGGEST SINGLEDAY ROUT IN GOLD AND OTHER PRECIOUS METALS MARKETS SINCE THE PERSIAN GULF WAR IN 1991 REPORTS OF SOME CENTRAL BANK SELLING OF GOLD FUTURES ALSO HELPED FUEL THE ROUT DEALERS SAID SOME GOLD TRADERS INSIST THAT CONDITIONS REMAIN RIPE FOR GOLD TO EXTEND ITS FOURMONTH RALLY SO FAR THERE'S BEEN GOOD SUPPORT FOR GOLD IN THE MID370S SAID GEORGE MILLINGSTANLEY AN ANALYST WITH LEHMAN BROTHERS HE SAID THAT THE DECEMBER CONTRACT'S INABILITY TO STAY ABOVE 410 A KEY RESISTANCE LEVEL DATING TO THE START OF THE GULF WAR IN EARLY JANUARY 1991 DID NOT MEAN THE END OF THE APPARENT BULL RALLY WE'LL TRADE SIDEWAYS BETWEEN 370 AND 400 FOR A WHILE I WOULD BE SURPRISED IF IT GOES BELOW 367 WHICH WOULD MARK A 50 RETRACEMENT FROM THE RALLY'S HIGH BILL FLECKENSTEIN A PRINCIPAL IN SEATTLEBASED OLYMPIC CAPITAL MANAGEMENT SAID HE THINKS THE MARKETS IN GOLD SILVER AND PLATINUM WILL QUICKLY REGAIN THEIR POISE AND MOVE HIGHER THE MARKETS WERE RIPE FOR A CORRECTION HE SAID WE'VE JUST HAD THE BIG WASHOUT THAT COMES IN THE EARLY STAGES OF A BULL MARKET MR FLECKENSTEIN CONTINUED WE SHOULDN'T SEE ANOTHER CORRECTION OF THIS MAGNITUDE UNTIL WE'VE GONE SUBSTANTIALLY HIGHER OTHER METAL MARKET EXPERTS HOWEVER EMPHASIZED EXTREME CAUTION THE BIG MONEY STILL APPEARS TO BE ON THE SHORTSIDE SAID BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER HE WAS REFERRING TO SPECULATIVE BETS BY SOME MONEY MANAGERS THAT GOLD PRICES WILL TREND LOWER THE PICTURE REMAINS HIGHRISK HE SAID AFTER THE BIG BREAK WE HAD IN GOLD AND SILVER LAST WEEK THE MARKETS ARE LIKELY TO UNDERGO A PERIOD OF SHOCK WE'RE GOING TO HAVE SOME VOLATILE PRICE SWINGS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY GASOLINE FUTURES SURGED ON CONCERN OVER A POSSIBLE SUPPLY PROBLEM BECAUSE OF OPERATION DISRUPTIONS AT SOME US PETROLEUM REFINERIES UNLEADED GASOLINE FOR SEPTEMBER DELIVERY JUMPED 183 CENTS TO SETTLE AT 5404 CENTS A GALLON ON THE NEW YORK MERCANTILE EXCHANGE THE RALLY HELPED PUSH UP OIL PRICES WORLDWIDE WITH THE US FUTURES PRICE OF SEPTEMBER CRUDE RISING 28 CENTS TO 1755 A BARREL THERE WAS SOME NEWS FROM THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAT MAY HAVE HELPED TO FIRM OIL PRICES YESTERDAY BUT TRADERS GENERALLY SHRUGGED OFF THOSE DEVELOPMENTS WHICH INCLUDED AN ANNOUNCEMENT FROM OPEC THAT ITS PRODUCTION COMPLIANCE COMMITTEE WOULD MEET IN VIENNA TODAY MORE SIGNIFICANT FOR THE MARKET WAS THE GROWING PERCEPTION THAT THERE COULD BE SOME TIGHTENING IN US GASOLINE SUPPLIES BECAUSE OF MECHANICAL PROBLEMS AND MAINTENANCE SHUTDOWNS THAT HAVE LED TO CLOSINGS OF SEVERAL US PETROLEUM REFINERIES OR UNITS THIS MONTH THE LATEST CLOSINGS CAME OVER THE WEEKEND AT UNITS OF THE TEXAS REFINERIES OF CHEVRON CORP AND MOBIL CORP GRAINS AND SOYBEANS PRICES OF CORN AND SOYBEAN FUTURES CONTRACTS SLIPPED AMID REPORTS THAT RECEDING FLOOD WATERS MIGHT PERMIT BARGE TRAFFIC TO RESUME ON THE MISSISSIPPI RIVER BY THE END OF AUGUST PRICES HAD RISEN EARLIER THIS SUMMER PARTLY ON SPECULATION THAT THE RIVER STILL WOULD BE CLOSED IN SEPTEMBER WHICH WOULD FORCE GRAIN EXPORTERS TO ACTIVATE THEIR LITTLEUSED PORTS ON THE GREAT LAKES MUCH OF AMERICA'S CORN AND SOYBEAN EXPORTS NORMALLY MOVE DOWN THE MISSISSIPPI RIVER TO NEW ORLEANS PORTS AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR AUGUST DELIVERY FELL 14 CENTS A BUSHEL TO SETTLE AT 6695 A BUSHEL THE CORN CONTRACT FOR SEPTEMBER DELIVERY DROPPED 45 CENTS A BUSHEL TO SETTLE AT 2365 A BUSHEL AFTER THE CLOSE OF TRADING SOME MIDWEST STATES REPORTED THAT THE CONDITION OF THEIR CROPS CHANGED LITTLE LAST WEEK DESPITE A BREAK IN THE RAINY WEATHER AND THAT FIELDS ARE CONTINUING TO MATURE ABOUT TWO OR MORE WEEKS BEHIND SCHEDULE IOWA OFFICIALS SAID 23 OF THE CORN CROP IS IN GOOD TO EXCELLENT CONDITION COMPARED WITH 24 THE PREVIOUS WEEK THE REPORTS OF RECEDING FLOOD WATERS ERODED THE SUPPORT IN THE MARKET CAUSED FRIDAY BY A CROP SURVEY FROM LESLIE ANALYTICAL ORGANIZATION INC CHICAGO THE SURVEY OF GRAIN ELEVATOR MANAGERS AND PROCESSORS PEGGED THE UPCOMING US CORN CROP AT 738 BILLION BUSHELS AND THE SOYBEAN HARVEST AT 186 BILLION BUSHELS THE AGRICULTURE DEPARTMENT IS SLATED TO UPDATE ITS MONTHLY CROP FORECAST TOMORROW IN JULY THE DEPARTMENT FORECAST A 785 BILLIONBUSHEL CORN CROP AND A 198 BILLIONBUSHEL SOYBEAN CROP 9308100095 930810 WHO'S NEWS WESTERN WASTE INDUSTRIES WESTERN WASTE INDUSTRIES LOS ANGELES RAMSEY G DILIBERO FORMERLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE CECOS INTERNATIONAL INC UNIT OF BROWNING FERRIS INDUSTRIES INC WAS NAMED A DIRECTOR OF THIS SOLIDWASTEMANAGEMENT FIRM INCREASING BOARD MEMBERSHIP TO SEVEN 9308100094 930810 LETTERS TO THE EDITOR ROOTS OF CORRUPTION I WAS SHOCKED AND HORRIFIED TO READ YOUR JULY 2 PAGE ONE ARTICLE HIS SPECIAL INTEREST IS BAN ON GIFT GIVING BY SPECIAL INTERESTS UNFORTUNATELY I SUPPLIED THE HYDROPONIC PLANT MENTIONED IN THE ARTICLE GOD HELP ME I DID NOT REALIZE THAT NYNEX WAS USING MY PRODUCT TO UNDULY INFLUENCE MORE THAN 200 LEGISLATORS TO VOTE THEIR WAY I THOUGHT THAT NYNEX WAS SENDING MY PLANTS TO IMPROVE THE ENVIRONMENTAL CONDITIONS IN THE LEGISLATORS' OFFICES ON HINDSIGHT I CAN SEE WHERE SUCH A MAGNIFICENT GIFT COULD UNDULY SWAY THE MINDS OF THE WEAK AND ACCORDINGLY I WILL NOT AGAIN PROVIDE PLANTS FOR NYNEX I HATE TO THINK OF HOW MY PLANTS MIGHT HAVE CORRUPTED THE ENTIRE US CONGRESS I NOTE THAT SEN RUSS FEINGOLD DISPOSED OF MY PLANT AS I ASSUME THAT HE DISPOSED OF THE 460000 RECEIVED FROM PACS THANK YOU FOR BRINGING TO LIGHT THIS TRAVESTY OF RECKLESS CORPORATE GIVING 9308100093 930810 LETTERS TO THE EDITOR WHY PICK ON THE KIDS ALTHOUGH I HAVE NEVER BEEN MUCH OF AN ANGLOPHILE YOUR JULY 2 WORLD WIRE ITEM FACTS ELUDE BRITISH KIDS HAS CAUSED ME TO COME TO THE DEFENSE OF BRITISH CHILDREN YOU SAY A MAJORITY OF BRITISH CHILDREN AGED 8 TO 12 DON'T KNOW WHAT THE EUROPEAN COMMUNITY THE ECU AND ERM ARE YET IN THE SAME EDITION YOU QUOTE FRENCH PRESIDENT FRANCOIS MITTERRAND WITH VOTERS FED UP WORLD LEADERS SEE THEIR POPULARITY SINK AT A RECENT EC SUMMIT SAYING EUROPE IS STILL CONFUSING TO PUBLIC OPINION PEOPLE CONTINUE TO ASK WHAT IT INVOLVES IN INTELLECTUAL POLITICAL AND INDUSTRIAL CIRCLES THAT'S CLEAR BUT PEOPLE STILL DON'T KNOWN WHAT IT IS IF THIS IS INDEED THE PERCEPTION OF A EUROPEAN LEADER OF THE ADULT CITIZENRY OF THE EC WHY ATTACK BRITISH CHILDREN AGED 8 TO 12 FOR NOT HAVING A WORKING COMMAND OF THE EC'S STRUCTURE 9308100092 930810 LETTERS TO THE EDITOR MAGGIE'S STEWARDSHIP REVITALIZED THE BRITISH IN RESPONSE TO THE JULY 16 LETTER FROM MRS GWEN MADELOUGH I TAKE EXCEPTION TO MRS MADELOUGH'S STATEMENT THAT THE POOR ARE MUCH POORER AS A RESULT OF MS THATCHER'S PRIME MINISTERSHIP I WAS BASED IN ENGLAND DURING THE LAST SIX MONTHS OF MRS THATCHER'S STEWARDSHIP AND SAW ON BBC A DEBATE IN COMMONS ABOUT THAT VERY SUBJECT A LIBERAL MADE THE STATEMENT THAT THERE WAS A BIGGER DIFFERENCE BETWEEN THE RICH AND THE POOR AS A RESULT OF HER POLICIES SHE HAD THE GENTLEMAN CONFIRM THAT THE POOR WERE SIGNIFICANTLY BETTER OFF IN INFLATIONADJUSTED TERMS HE WAS OBJECTING TO THE BIGGER SPREAD SHE THEN PROCEEDED TO BLOW HIM AWAY SO TO SPEAK ASKING HIM IF HE WERE ADVOCATING KEEPING THE POOR POOR AS LONG AS THE RICH DID NOT GET RICHER I WAS IN ENGLAND LONG ENOUGH TO CONCLUDE THAT THE ENGLISH ARE KINDLIER AND GENTLER THAN WE ARE A DELIGHTFUL PEOPLE ALSO THE VITALITY AND HEIGHTENED SPIRIT OF THE WHOLE COUNTRY AS A RESULT OF MRS THATCHER'S STEWARDSHIP WAS EVIDENT EVERYWHERE IN A CONVERSATION WITH AN ENGLISH ASSOCIATE I REMARKED HOW STRANGE IT WAS THAT THE PEOPLE COULD CONSIDER REPLACING MRS THATCHER WHEN THE POSITIVE RESULTS OF HER POLICIES WERE SO EVIDENT EVERYWHERE HE REMINDED ME OF ANOTHER GREAT LEADER WHOM THE ENGLISH REWARDED JUST AFTER HE HAD LED THEM TO VICTORY IN WORLD WAR II BY TURNING HIM OUT OF OFFICE WINSTON CHURCHILL 9308100091 930810 TRUMP SEEKS TO GAIN FULL CASINO OWNERSHIP WITH BOND EXCHANGE NEW YORK DONALD TRUMP IS HOPING TO REGAIN 100 OWNERSHIP OF THE TRUMP CASTLE CASINO IN ATLANTIC CITY THROUGH A BOND EXCHANGE WITH BONDHOLDERS WHO CURRENTLY HOLD A 50 STAKE LATE LAST WEEK PUTNAM INVESTMENTS A BOSTON MONEY MANAGEMENT FIRM THAT HOLDS 22 OF THE 338 MILLION IN EXISTING TRUMP CASTLE BONDS NOTIFIED THE SECURITIES AND EXCHANGE COMMISSION IT HAS AGREED TO SWAP ITS BONDS AND GIVE UP ITS OWNERSHIP STAKE FOR NEW BONDS OFFERING HIGHER YIELDS THE TRUMP ORGANIZATION IS SOON EXPECTED TO REGISTER WITH THE SEC AN EXCHANGE OFFER FOR ALL BONDHOLDERS THE DEAL WOULD BE CONTINGENT ON 90 OF BONDHOLDERS AGREEING TO THE SWAP ACCORDING TO THE PUTNAM FILING HOLDERS OF EACH 1000 FIRST MORTGAGE BOND YIELDING 95 WOULD RECEIVE 630 WORTH OF FIRST MORTGAGE BONDS YIELDING 11 5/8 AND A 250 PAYMENTINKIND BOND YIELDING 13 7/8 FOR WHICH INTEREST COULD BE PAID IN THE FORM OF ADDITIONAL SECURITIES IN EXCHANGE FOR THE HIGHER RETURNS BONDHOLDERS WOULD GIVE UP THEIR EQUITY IN THE PROPERTY THE NEW BONDS WOULD MATURE IN 2003 AND 2005 RESPECTIVELY THE EXISTING BONDS MATURE IN 1998 THE EXCHANGE PLAN IS PART OF AN EFFORT BY MR TRUMP TO REGAIN FULL OWNERSHIP OF EACH OF HIS THREE CASINOS PERHAPS AS A PRELUDE TO A PUBLIC OFFERING OF HIS CASINO EMPIRE MR TRUMP SURRENDERED 50 EQUITY IN BOTH THE TRUMP CASTLE AND THE TRUMP TAJ MAHAL THROUGH PREPACKAGED BANKRUPTCIES IN 1991 AND 1992 9308100090 930810 MARKETING & MEDIA VIRGIN RECORDS' HARRIS AYEROFF LEAVE FIRM QUARTARARO IS CEO NEW YORK AS EMI MUSIC CONTINUES TO DIGEST LAST YEAR'S ACQUISITION OF VIRGIN MUSIC GROUP THE TOPHEAVY EXECUTIVE LAYER AT VIRGIN IS BEING PRUNED VIRGIN MUSIC GROUP WORLDWIDE BASED IN LONDON ANNOUNCED THAT THE COCHAIRMEN OF VIRGIN'S US ARM HAVE RESIGNED JEFF AYEROFF 46 YEARS OLD AND JORDAN HARRIS 39 HAVE LEFT THE COMPANY VIRGIN SAID EFFECTIVE IMMEDIATELY THE COMPANY SAID PHIL QUARTARARO PRESIDENT OF VIRGIN RECORDS AMERICA INC WILL TAKE ON THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER THE MOVE WAS WELLRECEIVED IN THE MUSIC BUSINESS WHERE MR QUARTARARO IS CONSIDERED ONE OF THE STRONGEST PROMOTION AND MARKETING EXECUTIVES AROUND THERE HAD BEEN RUMORS OF CLASHES IN MANAGEMENT STYLE AT THE TOP OF VIRGIN AT A TIME WHEN MR QUARTARARO WAS BEING WOOED BY OTHER LABELS EMI MUSIC A UNIT OF LONDONBASED THORN EMI PLC BOUGHT VIRGIN LAST YEAR FOR ABOUT 1 BILLION SINCE THEN VIRGIN'S STAFF HAS BEEN REDUCED SOMEWHAT AND A NEW LABEL CHARISMA WHICH WAS STARTED BY MR QUARTARARO HAS BEEN FOLDED INTO VIRGIN MR QUARTARARO RAN THAT LABEL BEFORE BECOMING PRESIDENT OF VIRGIN'S US OPERATIONS LAST YEAR 9308100089 930810 ENTERTAINMENT BERTELSMANN GOES SHOPPING FOR FILM STUDIO BY CACILIE ROHWEDDER AND AUDREY CHOI STAFF REPORTERS OF THE WALL STREET JOURNAL GUETERSLOH GERMANY FIRST THERE WERE PRINTING PLANTS AND PUBLISHING HOUSES BOOK AND RECORD CLUBS THEN CAME MUSIC COMPANIES AND STAKES IN RADIO AND TELEVISION STATIONS NOW BERTELSMANN AG THE WORLD'S NO 2 MEDIA COMPANY IS HEADING FOR HOLLYWOOD ITS CHIEF EXECUTIVE MARK WOESSNER CONFIRMS THAT BERTELSMANN WANTS TO INVEST IN A HOLLYWOOD PRODUCTION COMPANY THOUGH HE IS COY ABOUT WHICH ONE IN BEVERLY HILLS JOHN DE SIMIO VICE PRESIDENT OF CASTLE ROCK ENTERTAINMENT SAYS BERTELSMANN HAS BEEN COMPETING WITH ATLANTABASED TURNER BROADCASTING INC FOR A LARGE STAKE IN CASTLE ROCK MAKER OF SUCH FILMS AS A FEW GOOD MEN AND MISERY THE STUDIO WHICH IS LOOKING FOR AN INVESTMENT OF AROUND 200 MILLION SAYS NOTHING IS DECIDED BUT INDUSTRY INSIDERS SAY THAT TURNER IS EMERGING AS THE FRONTRUNNER AND THAT TALKS WITH BERTELSMANN HAVE BEEN ON HOLD FOR MONTHS EVEN IF IT DOESN'T WIN CASTLE ROCK BERTELSMANN DOESN'T PLAN TO GIVE UP SHOPPING IN HOLLYWOOD IT WOULD BE A DON QUIXOTE ATTEMPT TO TRY TO COMPETE WITH THE HIGHGLITZ PROFESSIONALISM OF HOLLYWOOD WITH A EUROPEAN PRODUCTION HOUSE MR WOESSNER SAYS THE COMPETENCE JUST ISN'T THERE WITH NO DEBT ON ITS BOOKS THE CLOSELY HELD CASHRICH COMPANY FIGURES IT CAN POUNCE ON A MAJOR STRATEGIC ACQUISITION WHEN THE TIME IS RIGHT BERTELSMANN'S FOUR INDEPENDENT DIVISIONS PURSUE ENTERTAINMENT PRINTING NEWSPAPER AND BOOKRELATED INTERESTS IN 40 COUNTRIES BY ADDING MOVIE PRODUCTION TO ITS ACTIVITIES BERTELSMANN WOULD BE ABLE TO FEED EXPANSION OF ITS OWN RELATIVELY MODEST TV HOLDINGS BUT DESPITE BERTELSMANN'S APPARENT DETERMINATION THIS TIME TO MAKE AN ACQUISITION FOR YEARS IT HAS DROPPED OUT OF AUCTIONS FOR RECORD LABELS AND MUSIC STARS UNWILLING TO PAY WHAT OTHERS WOULD LAST YEAR BERTELSMANN DROPPED OUT OF TALKS TO ACQUIRE VIRGIN MUSIC GROUP LTD WELL BEFORE EMI MUSIC A UNIT OF THORN EMI PLC AGREED TO PAY MORE THAN 1 BILLION BEFORE THAT MR WOESSNER WAS ADAMANT THAT BERTELSMANN'S RCA LABEL WOULD PAY COMPETITIVELY TO SIGN SINGER JANET JACKSON SHE SOON AGREED TO A CONTRACT WITH VIRGIN VALUED AT MORE THAN 40 MILLION ABOUT THE ONLY TIME BERTELSMANN WON A MUSIC INDUSTRY BIDDING WAR WAS ITS DEAL LAST YEAR WITH ROCK GROUP ZZ TOP SAID TO COST ABOUT 35 MILLION AT THE TIME COMPETING COMPANIES DERIDED THE DEAL AS EXCESSIVE FOR AN AGING ACT WITH DECLINING SALES BERTELSMANN ALSO HAS MORE THAN HOLLYWOOD ON ITS PLATE IT WANTS TO EXPAND ITS TV HOLDINGS IN GERMANY AND EASTERN EUROPE AND IT IS CURRENTLY MOVING INTO THE EAST WITH EVERYTHING FROM BOOK CLUBS TO RECORDING CONTRACTS IT ALSO HOPES TO EXPAND ITS MUSIC BUSINESS IN ASIA AND TO ENLARGE BERTELSMANN MUSIC GROUP AS A WHOLE BMG ITS NEWYORK BASED ENTERTAINMENT UNIT ALREADY OWNS ARISTA RECORDS AND RCA RECORDS THE COMPANY HAD ANOTHER RECORD YEAR IN THE 12 MONTHS ENDED JUNE 30 MR WOESSNER SAYS SURPASSING BY FAR LAST YEAR'S NET INCOME OF 569 MILLION MARKS 332 MILLION IT WON'T DISCLOSE HOW PROFITABLE ITS MOST RECENT MAJOR ACQUISITIONS IN THE US HAVE BEEN PUBLISHER DOUBLEDAY INC AND RCA RECORDS THE TWO COMPANIES WERE PURCHASED FOR AN ESTIMATED TOTAL OF 800 MILLION IN 1986 BERTELSMANN LEARNED SOME TOUGH LESSONS IN THE US IN THE 1980S SEVERAL CAME FROM ITS UNSUCCESSFUL 30 MILLION LAUNCH OF A US VERSION OF GEO A NATURALSCIENCE MAGAZINE THE CONCERN FOUND IT DIFFICULT TO TAKE A HANDSOFF APPROACH IN THE FACE OF UNFAMILIAR US MANAGEMENT AND MARKETING STYLES NOW IT IS PUTTING SOME OF ITS EXPERIENCE TO WORK IN BOTH WESTERN AND EASTERN EUROPE THE GROUP HAS ALSO FOUGHT HARD TO CAPITALIZE ON POSTUNIFICATION OPPORTUNITIES IN ITS HOME MARKET A LATE COMER TO THE NEWS BUSINESS BERTELSMANN'S FIRST NEWSPAPER ACQUISITION WAS THE HAMBURGER MORGENPOST IN 1989 NOW IT OWNS 12 WHEN IN THE 1970S WE GOT THE IDEA TO BUY DAILIES THERE WEREN'T ANY AVAILABLE MR WOESSNER SAYS WE WERE LUCKY WITH UNIFICATION TO GET HOLD OF GOOD DAILY PAPERS PERIODICALLY MR WOESSNER MAKES PUBLIC APPEALS FOR LESS SEX AND VIOLENCE IN THE VARIOUS MEDIA IN WHICH BERTELSMANN HOLDS STAKES BUT IN THE END HE CONCEDES MONEYMAKING CONCERNS HAVE TO PROVIDE WHAT PEOPLE WANT TELEVISION FOR INTELLECTUALS REACHES ABOUT AS MANY VIEWERS AS THE TEST PICTURE HE SAYS BOOK CLUBS ARE STILL HIS FAVORITE CHILDREN MR WOESSNER ADDS DESPITE THE FUTURE DISPROPORTIONAL GROWTH OF THE ELECTRONIC MEDIA I COUNT ON THE CONTINUED COEXISTENCE OF ELECTRONIC AND PRINT MEDIA BOOKS AFTER ALL ARE WHAT MADE BERTELSMANN BIG THEY WERE THE POSTWAR GROWTH ENGINE CHOSEN BY REINHARD MOHN THE SENIOR MEMBER OF THE OWNING FAMILY WHEN HE RETURNED FROM A US PRISON CAMP AND REBUILT THE FAMILY BUSINESS MR WOESSNER'S VISION FOR THE YEAR 2000 INCLUDES DOING LESS BUSINESS IN GERMANY AND MORE IN ASIA INCREASING THE ASIAN SHARE OF BERTELSMANN'S ACTIVITIES TO 10 NOW ROUGHLY 6 OF ALL SALES ORIGINATE OUTSIDE EUROPE AND THE US BUT THE COMPANY SAYS BERTELSMANN MUSIC GROUP IS EXPANDING IN THE ASIAPACIFIC REGION WE'RE THE FOURTHLARGEST MUSIC COMPANY IN THE WORLD SAYS MR WOESSNER THAT'S NICE BUT IT'S NOT ENOUGH TO DEMONSTRATE ITS AMBITIONS TO THE WORLD BERTELSMANN MUSIC GROUP RECENTLY MOVED INTO A SKYSCRAPER ON NEW YORK'S TIME SQUARE FROM THERE PARENT BERTELSMANN WANTS TO GROW EVEN MORE AND PERHAPS REGAIN ITS FORMER POSITION ATOP THE GLOBAL MEDIA HEAP IF THE NO 2 AND 3 IN THE WORLD TIME AND WARNER BROS HADN'T TEAMED UP MR WOESSNER SAYS WE'D STILL BE NO 1 9308100088 930810 ABREAST OF THE MARKET INDUSTRIALS RISE TO RECORD 357608 AS LONGTERM INTEREST RATES FALL BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOW JONES INDUSTRIAL AVERAGE CLIMBED TO A RECORD AMID FALLING LONGTERM INTEREST RATES THE GAINS CAME AS INTEREST RATES TUMBLED ON EXPECTATIONS THAT THE HIGHER TAXES THAT ARE PART OF THE NEWLY PASSED BUDGET WILL SLOW ECONOMIC GROWTH THE TREASURY'S 30YEAR BOND JUMPED 3/4 OF A POINT BRINGING THE YIELD ON THE BENCHMARK ISSUE TO 646 THE LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 THE ADVANCE IN STOCKS WAS BROAD WITH A NUMBER OF SPECIALIZED STOCK MARKET BAROMETERS ALSO PARTICIPATING IN THE RALLY THE DOW JONES TRANSPORTATION INDEX SOARED 1432 TO 161766 AND THE DOW JONES UTILITY AVERAGE WHICH IS CONSIDERED BY SOME ANALYSTS AS A LEADING INDICATOR OF INTEREST RATES AND STOCK PRICES INCHED UP 026 TO 25112 ANALYSTS SAID THE INDEX HAD RALLIED HEAVILY LAST WEEK IN ANTICIPATION OF THE INTEREST RATE MOVE VOLUME ON THE BIG BOARD CLIMBED TO 231737870 SHARES UP FROM 221139770 SHARES FRIDAY ADVANCING ISSUES OUTNUMBERED DECLINERS 1210 TO 804 THE BOTTOM LINE IS THAT YOU HAVE SLOW GROWTH AND SLOW ACCELERATION WHICH IS GOOD FOR INTEREST RATES SAYS WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS AND A BENIGN INTEREST RATE ENVIRONMENT GENERALLY BODES WELL FOR STOCKS CHARLES CLOUGH STOCK STRATEGIST AT MERRILL LYNCH SAID HE THINKS STOCKS CAN GAIN 5 TO 8 IN THE NEXT YEAR ANTICIPATING SUCH A MOVE MR CLOUGH RECENTLY ADVISED HIS CLIENTS TO INCREASE THEIR STOCKHOLDINGS TO 60 FROM 55 AND REDUCE THE PORTION OF BONDS IN THEIR PORTFOLIO TO 25 FROM 30 IF STOCKS FALL SHARPLY MR CLOUGH SAID HE RECOMMENDS THAT INVESTORS LOAD UP ON MORE SHARES ONE OF THE REASONS HE IS SO BULLISH ON STOCKS IS THAT HE THINKS THAT THE MANUFACTURING SECTOR OF THE ECONOMY WILL DO BETTER IN THE SECOND HALF OF THE YEAR MR CLOUGH SAID THE RATIO BETWEEN INVENTORY AND SALES IN THE US MANUFACTURING SECTOR IS THE LOWEST IT HAS BEEN IN 35 YEARS INDICATING THAT EVEN A SLIGHT INCREASE IN DEMAND WOULD TRIGGER SHARP INCREASES IN PRODUCTION HE ADDED THAT EVEN THOUGH SOME EUROPEAN ECONOMIES ARE STILL MIRED IN RECESSION STOCK PRICES HERE SHOULD GAIN IN ANTICIPATION OF A TURNAROUND IN THOSE ECONOMIES NEXT YEAR DRUG STOCKS FELL ON FEARS THAT DRUG MAKERS WILL LOSE THE TAX BENEFITS ASSOCIATED WITH THEIR PUERTO RICAN OPERATIONS UNDER THE NEW BUDGET MERCK SLIPPED 1/8 TO 30 5/8 BRISTOLMYERS SQUIBB LOST 3/4 TO 51 3/4 WARNERLAMBERT EASED 7/8 TO 65 3/8 AND SCHERINGPLOUGH SLUMPED 1 3/4 TO 59 3/8 LEHMAN BROTHERS LOWERED ITS INVESTMENT RATING ON SCHERINGPLOUGH TO OUTPERFORM FROM BUY BUT PRECIOUS METALS STOCKS REBOUNDED AS GOLD RECOVERED FROM LAST WEEK'S STEEP SELLOFF HOMESTAKE MINING GAINED 5/8 TO 19 3/4 AMERICAN BARRICK SOARED 1 1/4 TO 25 3/4 AND NEWMONT MINING CLIMBED 5/8 TO 52 7/8 EASTMAN KODAK WAS THE MOST ACTIVE STOCK ON THE BIG BOARD VAULTING 1 1/4 TO 59 7/8 AFTER RALLYING FRIDAY INVESTORS APPROVED EASTMAN KODAK'S MOVE TO OUST KAY R WHITMORE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND TO SUCCEED HIM WITH AN OUTSIDER WHO WON'T NEED PRODDING TO MAKE MASSIVE COST CUTS YPF SOCIEDAD ANONIMA ADDED 3/8 TO 20 1/4 IN HEAVY TRADING ARGENTINA'S STATEOWNED OIL COMPANY REPORTED PROFIT SWELLED TO 44 CENTS A SHARE IN THE SECOND QUARTER FROM 16 CENTS A SHARE A YEAR AGO GENENTECH SLID 1 1/4 TO 42 5/8 A FOOD AND DRUG ADMINISTRATION STAFF REPORT CONCLUDED THAT THE COMPANY'S DRUG PULMOZYME IS APPROVABLE FOR THE TREATMENT OF CYSTIC FIBROSIS FOR PATIENTS OVER FIVE YEARS OLD BUT THE FDA STAFF HAD CONCERNS THAT THE LONGTERM SAFETY AND EFFICACY OF THE DRUG IS UNKNOWN AND SAID FURTHER TESTING SHOULD BE CONDUCTED POLICY MANAGEMENT SYSTEMS SKIDDED 2 1/2 TO 24 7/8 THE COMPUTER SOFTWARE CONCERN SAID IT WILL BE UNABLE TO RELEASE SECONDQUARTER RESULTS AS EXPECTED THIS WEEK BECAUSE OF AN INVESTIGATION OF ITS ACCOUNTING AND BUSINESS PRACTICES THE COMPANY ALSO SAID THE INVESTIGATION IS LIKELY TO RESULT IN THE REVISION OF ITS FINANCIAL STATEMENTS FOR PREVIOUS PERIODS CHARTER MEDICAL RALLIED 1 1/2 TO 21 1/2 THE HOSPITAL OPERATOR SAID IT HAS REACHED AN AGREEMENT IN PRINCIPLE TO SELL 10 GENERAL ACUTE CARE HOSPITALS TO QUORUM HEALTH GROUP FOR 340 MILLION AVON PRODUCTS CLIMBED 1 1/8 TO 58 1/8 THE COSMETICS CONCERN SAID IT INCREASED ITS QUARTERLY DIVIDEND TO 45 CENTS A SHARE FROM 40 CENTS UDC HOMES SHOT UP 1 TO 6 DONALDSON LUFKIN & JENRETTE UPGRADED THE STOCK TO VERY ATTRACTIVE FROM NEUTRAL WESTERN DIGITAL CATAPULTED 3/4 TO 5 3/4 ROCKWELL INTERNATIONAL SIGNED A LETTER OF INTENT TO ACQUIRE WESTERN DIGITAL'S SILICON WAFER FABRICATION PLANT FOR 115 MILLION THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 246 OR 056 TO 43880 THERE WERE 289 DECLINERS AND 278 GAINERS 9308100087 930810 TECHNOLOGY GENENTECH'S CYSTIC FIBROSIS TREATMENT IS UNANIMOUSLY CLEARED BY FDA PANEL BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL UNANIMOUSLY RECOMMENDED APPROVAL OF GENENTECH INC'S DNASE AS THE FIRST NEW THERAPY FOR CYSTIC FIBROSIS PATIENTS IN 30 YEARS CYSTIC FIBROSIS IS AN INHERITED LUNG DISEASE AFFLICTING 30000 AMERICANS ULTIMATELY IT WREAKS PERMANENT LUNG DAMAGE OFTEN CAUSING DEATH IN YOUNG ADULTHOOD WHILE THE VOTE OF THE NINEMEMBER PANEL ISN'T BINDING ON THE FDA ITS RECOMMENDATION IS TRADITIONALLY GIVEN GREAT WEIGHT MOREOVER FDA COMMISSIONER DAVID KESSLER WHO HAS OFTEN CHAMPIONED FAST APPROVALS FOR TREATMENTS FOR FATAL ILLNESSES SAID YESTERDAY IT'S FAIR TO SAY THIS AGENCY HAS EXPEDITED THE REVIEW OF THIS APPLICATION BUT HE CAUTIONED THAT GENENTECH'S DRUG ISN'T A PANACEA THE BENEFITS ARE REAL IT'S NOT A MIRACLE DRUG BUT IN THE LONG RUN IT MAY BE A VERY IMPORTANT PART OF THE MEDICAL ARMAMENTARIUM AFFECTING QUALITY OF LIFE DR KESSLER SAID IN AN INTERVIEW IN SOUTH SAN FRANCISCO G KIRK RAAB GENENTECH'S PRESIDENT AND CHIEF EXECUTIVE OFFICER PRAISED THE FDA FOR ITS COLLABORATION AND SWIFT HANDLING OF DNASE WHICH WILL BE SOLD UNDER THE BRAND NAME PULMOZYME THE NEWS CAME AFTER THE CLOSE OF TRADING ON THE NEW YORK STOCK EXCHANGE WHERE GENENTECH FINISHED AT 42375 DOWN 150 IN ADDITION TO PROBABLE PROFITTAKING INVESTORS HAVE BEEN WATING TO SEE WHETHER GENENTECH'S SWISS PARENT ROCHE HOLDING LTD WILL EXERCISE ITS OPTION TO BUY THE 37 OF GENENTECH IT DOESN'T ALREADY OWN CYSTIC FIBROSIS PATIENTS AND THEIR ADVOCATES WERE EXCITED BY THE PANEL'S DECISION GREAT SAID RISA GANS A 33YEAROLD STUDY VOLUNTEER IN HOLLYWOOD FLA UPON LEARNING OF THE RECOMMENDED APPROVAL SINCE BEGINNING DNASE IN MARCH 1992 MS GANS SAID SHE HAS MORE ENERGY AS WELL AS LESS CONGESTION AND COUGHING I FEEL CLEAR MY BAD DAYS NOW ARE LIKE MY GOOD DAYS WERE BEFORE DNASE PULMOZYME MAY UNLOCK THE HANDCUFFS THAT HAVE FRUSTRATED CAREGIVERS FOR DECADES SAID ROBERT BEALL EXECUTIVE VICE PRESIDENT OF THE CYSTIC FIBROSIS FOUNDATION BASED IN BETHESDA MD GENENTECH PRESENTED DATA FROM A 968PATIENT STUDY SHOWING DNASE PROMPTED A ONEQUARTER TO ONETHIRD REDUCTION IN LUNG INFECTIONS ALONG WITH FEWER HOSPITAL DAYS AND LESS NEED FOR INTRAVENOUS ANTIBIOTICS ALSO PATIENTS ON DNASE HAD ABOUT A 5 IMPROVEMENT IN LUNG FUNCTION AS MEASURED BY SUCH TESTS AS FORCED EXHALATION ABOUT ONE IN 20 PATIENTS ON DNASE DEVELOPED ANTIBODIES AGAINST THE DRUG AND OTHERS HAD HOARSENESS THROAT IRRITATION OR RASH DNASE IS A GENETICALLY ENGINEERED COPY OF A NATURAL HUMAN ENZYME WHICH CUTS STRANDS OF DNA THAT THICKEN LUNG SECRETIONS THUS THE DRUG HELPS LIQUEFY CONGESTION TO CLEAR AIRWAYS AND EASE BREATHING THE DRUG'S DEVELOPMENT WAS UNUSUALLY RAPID MOVING FROM LABORATORY TO REGULATORY HEARINGS IN ABOUT FIVE YEARS A TYPICAL DEVELOPMENT COURSE IS EIGHT YEARS MANY QUESTIONS REMAIN ABOUT DNASE INCLUDING QUESTIONS OF PRICE AVAILABILITY AND WHETHER IT CAN BENEFIT THE VERY YOUNG OR VERY SICK PATIENTS WHO WEREN'T INCLUDED IN THE STUDY THE STUDY FOCUSED ON PATIENTS AGED FIVE TO 20 YEARS WITH MILD TO MODERATE CYSTIC FIBROSIS CHILDREN UNDER THE AGE OF FIVE WEREN'T INCLUDED IN THE ORIGINAL CLINICAL TESTS BUT MAY BE THE FOCUS OF FUTURE STUDIES ALSO EXCLUDED WERE PATIENTS WHOSE LUNG CAPACITY HAD FALLEN BELOW 40 OF NORMAL THE RECOMMENDED DOSE OF 25 MG OF DNASE TAKEN ONCE A DAY IN AEROSOL FORM ALSO MAY BE INCREASED IN THE FUTURE IF STUDIES CONFIRM THAT OLDER OR SICKER PATIENTS BENEFIT FROM TWICEDAILY TREATMENTS BUT WITH SECURITIES ANALYSTS PREDICTING A PRICE TAG AS HIGH AS 10000 A YEAR FDA PANELISTS WERE ACUTELY AWARE OF WHAT ONE MEMBER CALLED OUR FIDUCIARY DUTY TO TRY TO KEEP PATIENT COSTS DOWN GENENTECH OFFICERS DEMURRED ON PRICE QUESTIONS RAISED AT YESTERDAY'S HEARING ALSO UNCLEAR IS HOW QUICKLY DNASE MIGHT HIT THE MARKET MR RAAB DECLINED COMMENT HOWEVER PEOPLE CLOSE TO GENENTECH SAID IT IS STILL WORKING TO RESOLVE VOLUME MANUFACTURING ISSUES AT ITS NEW DNASE PLANT WHICH WAS COMPLETED IN DECEMBER 9308100085 930810 REVIEW & OUTLOOK EDITORIAL ASIDES RENO MISFIRES ATTORNEY GENERAL RENO WENT A BIT OFF THE RAILS ON VIOLENCE YESTERDAY IN FRONT OF THE AMERICAN BAR ASSOCIATION WHY NOT HAVE EACH LAWYER ADOPT ONE SCHOOL ONE BLOCK ONE FAMILY OR ONE FIRST GRADE TO PREVENT THE CRISIS UP FRONT BY BECOMING ADVOCATES FOR CHILDREN WHO CANNOT SPEAK FOR THEMSELVES EGAD KIDS HAVE TROUBLES ENOUGH THESE DAYS WITHOUT HAVING TO SPEND FREE TIME TALKING TO A LAWYER 9308100084 930810 REVIEW & OUTLOOK EDITORIAL REPEAL RETROACTIVITY SOUNDS LIKE A GOOD BUMPER STICKER TO US SOMEHOW THE IDEA OF MAKING INCOME TAXES RETROACTIVE TO JANUARY 1 JUST SEEMS TO RUB A LOT OF PEOPLE THE WRONG WAY ABC'S SAM DONALDSON KICKED OFF THE NATIONAL REPEAL RETROACTIVITY CAMPAIGN SUNDAY ON THE DAVID BRINKLEY SHOW WITH THE FOLLOWING REMARKABLE EXCHANGE WITH THE CLINTON ADMINISTRATION'S DESIGNATED FLAKCATCHER VICE PRESIDENT AL GORE MR DONALDSON MR VICE PRESIDENT YOU WANT TO REACH OUT OR YOU SAID YOU HAVE REACHED OUT SENATOR HUTCHISON TOLD US EARLIER THAT ONE WAY TO REACH OUT WAS PERHAPS NOT TURN YOUR BACK ON FINDING OTHER REVENUE TO REPLACE THE RETROACTIVITY FOR INCOME TAXES FOR THE WEALTHY THAT IS NOW CONTAINED IN THE BILL DO YOU THINK THAT'S A NONSTARTER FOR THIS FALL VICE PRESIDENT GORE LET ME PUT THAT IN PERSPECTIVE ALL OF THE HOOPLA AND WAVING OF ARMS ABOUT RETROACTIVITY IS ALL IN BEHALF OF THE WEALTHIEST 1 OF PEOPLE IN THIS COUNTRY THOSE ARE THE ONLY PEOPLE AFFECTED BY RETROACTIVITY THERE'S NO MENTION OF THE FACT THAT THE TAX CUTS FOR 96 OF THE SMALL BUSINESSES IN THIS COUNTRY ARE ALSO RETROACTIVE THERE'S NO MENTION OF THE FACT THAT 27 TIMES JUST SINCE WORLD WAR II OR IN THIS CENTURY WE'VE SEEN RETROACTIVE TAX BILLS MANY WRITTEN BY REPUBLICANS IN THE FINANCE COMMITTEE DONALDSON DO YOU THINK IT'S FAIR GORE PARDON ME DONALDSON DO YOU THINK IT'S FAIR DONALDSON I'M NOT TALKING ABOUT HIGHER TAX RATES DONALDSON WELL I'M NOT TALKING ABOUT HIGHER TAX RATES GORE THAT THE WEALTHIEST 1 WERE GOING TO PAY HIGHER TAXES DONALDSON BUT WHEN I SAID DO YOU THINK IT'S FAIR REALLY MY MAIN QUESTION IS THIS FALL IF IT COMES UP AND SENATOR DOLE BRINGS IT UP ARE YOU SIMPLY GOING TO SAY NO OR WILL YOU SAY LET'S SEE WHAT WE CAN DO GORE WELL I THINK AS I SAID EARLIER THE POINT NOW IS TO MOVE FORWARD INTO THE FUTURE OR MAYBE HE MEANS RETROACT TO THE FUTURE THE CLINTON FOLKS WILL GET A SIGN SHORTLY BECAUSE REPEAL RETROACTIVITY IS A NATIONAL VERSION OF THE BUMPER STICKER NOW BEING SEEN ALL OVER NEW JERSEY FLORIO FREE IN '93 GOVERNOR JIM FLORIO JACKED UP TAXES ON THE RICH IMMEDIATELY UPON TAKING OFFICE AND MAINLY ENDED UP ENRAGING THE STATE'S BLUECOLLAR VOTERS WHO'RE STILL SIMMERING HE'S GOT TO FACE THEM IN AN ELECTION THIS NOVEMBER SO DOES NEW JERSEY'S LIFELONG TAXANDSPEND SEN FRANK LAUTENBERG IN 1994 PROMPTING THE DEMOCRATS TO GIVE HIM A HILARIOUS EXEMPTION FROM HAVING TO VOTE FOR THE CLINTON RETROACTIVE TAX BILL SIMILARLY ONLY 14 MONTHS FROM NOW ALL THOSE CONGRESSIONAL DEMOCRATS WHO VOTED LATE LAST WEEK TO SAVE THE CLINTON PRESIDENCY ARE GOING TO HAVE TO FACE A MIDDLECLASS ELECTORATE THAT SEEMS TO THINK THE CLINTONDEMOCRATIC TAX INCREASES ARE AIMED AT THEM DESPITE THE ENDLESS REFERENCES IN NEWS STORIES TO THE RATES AFFECTING ONLY THE TOP 15 OF TAXPAYERS AND ONLY THE RICH GOSH MAYBE A LOT OF PEOPLE OUT THERE REGARDLESS OF THEIR INCOME LEVEL THINK THAT RETROACTIVITY REALLY ISN'T VERY FAIR ESPECIALLY WHEN THE 43 PRESIDENT MAKES THE NEW TAXES RETROACTIVE TO JANUARY 1 20 DAYS BEFORE HE EVEN TOOK OFFICE IN FACT THIS IS BEGINNING TO SOUND TO US LIKE A PRETTY GOOD LONGTERM RADIO TALKSHOW TOPIC SORT OF LIKE THE CONGRESSIONAL PAY RAISE OF RECENT MEMORY AFTER ALL THE OTHER 985 MAY THINK THAT WITH HEALTHCARE REFORM NEXT WHAT'S TO STOP THIS SAME CREW FROM PACKING IN SOME PAYROLLTAX RETROACTIVITY ON THEM TO FUND THE THING WE'LL SOON BE HEARING FROM THE OTHER CLINTON ABOUT HOW A NICKEL OR DIME A WEEK BACK IN TIME IS SMALL CHANGE WHEN IT'S FUNDING FUNDAMENTAL CHANGE WE HATE TO SAY IT BUT CONGRESSIONAL DEMOCRATS CAN ACTUALLY SAVE THEMSELVES FROM RISKING A RUNIN WITH THE RETROACTIVITY MONSTER THEY CAN SIMPLY REPEAL IT CONGRESS LEFT ITSELF AN ESCAPE BY STRETCHING OUT THE PAYMENT SCHEDULE FOR THIS OUTRAGEOUS PLOY OBVIOUSLY ONLY THE RICHEST HOLLYWOOD AND WALL STREET LIBERALS WILL FORK OVER THE FULL RETROACTIVE AMOUNT RIGHT AWAY WHICH MEANS THAT FOR MOST PEOPLE CONGRESS HAS ALMOST TWO YEARS TO CALL BACK THE CLINTONS' RETROACTIVITY ICBM EVEN WITH RETROACTIVITY REPEALED MONTHS FROM NOW THE CLINTON PRESIDENCY WOULD REMAIN AS SAVED AS IT'S EVER GOING TO BE MAYBE IT'S THE DEMOCRATS' TURN TO THINK ABOUT SAVING THEMSELVES SO LET THE CAMPAIGN BEGIN REPEAL RETROACTIVITY 9308100083 930810 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK HENRY J LEINGANG 44 YEARS OLD VICE PRESIDENT AND CHIEF INFORMATION OFFICER OF VIACOM OPERATING UNIT VIACOM INTERNATIONAL INC WAS NAMED A SENIOR VICE PRESIDENT HE RETAINS HIS CURRENT DUTIES AT THIS CABLE TELEVISION NETWORK PROGRAMMING AND SOFTWARE COMPANY 9308100082 930810 WHO'S NEWS COASTAL CORP COASTAL CORP HOUSTON M FRANK POWELL WAS ELECTED VICE PRESIDENT GOVERNMENT AND CORPORATE AFFAIRS OF THIS NATURAL GAS COMPANY MR POWELL 43 YEARS OLD WORKED AT COASTAL AS AN ATTORNEY FROM 1978 TO 1984 AND LEFT FOR PRIVATE LAW PRACTICE IN WHICH HE REPRESENTED THE COMPANY ON A NUMBER OF LEGAL AND GOVERNMENT RELATIONS ASSIGNMENTS 9308100081 930810 PRICING HEALTH CARE CLINTON FORGETS HIS HEALTH CARE ALLIES BY PAUL M ELLWOOD WE BEGAN THE YEAR WITH A REAL OPPORTUNITY FOR RAPID PASSAGE OF COMPREHENSIVE HEALTH CARE REFORM BUT MY CONVERSATIONS WITH MODERATE AND CONSERVATIVE DEMOCRATS AND REPUBLICANS AS WELL AS ADMINISTRATION OFFICIALS CONFIRM THAT THE CIRCULATING TASK FORCE HEALTH PLAN HAS NO CHANCE OF LEGISLATIVE ENACTMENT ANTICIPATING ITS CHILLY RECEPTION REPUBLICAN LEADERS EXPECT SOME POLITICAL GAIN BY DEFERRING SERIOUS NEGOTIATIONS UNTIL AFTER THE PRESIDENT'S PLAN IS MADE PUBLIC FORTUNATELY THE PRESIDENT HAS NOT YET ANNOUNCED HIS OWN POSITION ON THE VARIOUS TASK FORCE RECOMMENDATIONS AND THERE IS STILL AN OPPORTUNITY TO REVISE KILLING ELEMENTS OF THE PLAN SINCE GIVING UP ACTIVE MEDICAL PRACTICE 20 YEARS AGO I'VE WORKED WITH MOST OF THE LEADERS OF AMERICAN HEALTH CARE TO FIND WAYS TO RESHAPE OUR HEALTH DELIVERY AND PAYMENT SYSTEM PURCHASERS HEALTH CARE EXECUTIVES PHYSICIANS ACADEMICS AND MANY POLITICAL LEADERS HAVE GATHERED AT JACKSON HOLE WYO AND ELSEWHERE TO ACKNOWLEDGE AND ATTACK THE FAILURES OF OUR HEALTH CARE SYSTEM WE WANTED HEALTH CARE TO RESPOND TO THE FORCES THAT SHAPE OUR LIVES IN MOST OTHER WAYS INCENTIVES THAT ENSURE THAT THOSE PURSUING PRIVATE INTERESTS ADVANCE THE PUBLIC INTEREST OUT OF THESE DISCUSSIONS CAME THE SPREAD OF MANAGED CARE TO MORE THAN 100 MILLION AMERICANS AND THE MANAGED COMPETITION POLICY CAN THE PRESIDENT AND THE NATION AVOID A HEALTH CARE VERSION OF THE BUDGET RECONCILIATION PROCESS THREE OF THE LESSONS WE'VE LEARNED THROUGH OUR INFORMAL EFFORTS MAY ALLOW HIM TO MODIFY AND BUILD A BROADER CONSENSUS FOR HIS REFORMS LESSON ONE ENSURE THAT THOSE ADVANCING THEIR PRIVATE INTERESTS ACHIEVE SUCCESS BY ADVANCING THE PUBLIC INTEREST WHITE HOUSE PLANNERS NEVER FULLY EMBRACED THE REFORM MODEL THE PRESIDENT ENDORSED DURING THE CAMPAIGN PURCHASERS OF HEALTH BENEFITS LIKE ALLIED SIGNAL XEROX AND GENERAL ELECTRIC HAD DISCOVERED THAT THE MOST POWERFUL FORCES IN THE HEALTH CARE ECONOMY HOSPITALS INSURERS DOCTORS IN PRIVATE PRACTICE WILL CHANGE THEIR BEHAVIOR WHEN ECONOMIC INCENTIVES ARE ALTERED ORGANIZED DELIVERY SYSTEMS SUCH AS THE MAYO CLINIC AND HARVARD HEALTH PLAN PROPERLY COMPENSATED COULD ACHIEVE BETTER QUALITY AT LOWER COSTS IN OAHU MINNEAPOLIS DES MOINES AND PORTLAND ORE HEALTH CARE AND EMPLOYER LEADERS ARE MANIPULATING THE INTERPLAY BETWEEN PUBLIC GROUND RULES BUYER DEMAND AND PROVIDER BEHAVIOR THE WHITE HOUSE SEEMED NOT TO UNDERSTAND THAT ITS JOB WAS TO MOTIVATE THE PRIVATE SECTOR TO CHANGE INSTEAD IT MISTAKENLY FOCUSED ITS ENERGY ON GOVERNMENT STRATEGIES FOR MANAGING HEALTH CARE COSTS AND ON THE CREATION OF QUASIGOVERNMENTAL PURCHASING POOLS WITH THE POWER TO IMPOSE REGULATORY CONSTRAINTS ON HEALTH CARE PROVIDERS IT BECAME CAUGHT UP IN ARCANE DEBATES OVER THE SIZE OF FIRMS REQUIRED TO PARTICIPATE IN PURCHASING POOLS INSTEAD OF SOLVING THE FAR MORE IMPORTANT AND CLEARLY FEDERAL PROBLEM OF GARNERING PUBLIC AND PRIVATE FUNDS TO PAY FOR IMPROVED HEALTH SECURITY LESSON TWO DEAL WITH AS MANY PIECES OF THE PROBLEM AS POSSIBLESIMULTANEOUSLY OPENLY AND COLLECTIVELY THE WHITE HOUSE TASK FORCE AND ITS WORKING GROUPS HAVE BEEN EXCLUSIVE SECRETIVE COMPARTMENTALIZED AND UNDULY COMPLEX THE WHITE HOUSE BELIEVED IT HAD AN ELECTION MANDATE TO INSTITUTE BASIC CHANGE AND IT LATCHED ON TO POLLS PURPORTEDLY SHOWING THAT THE PUBLIC VIEWED DRUG COMPANIES INSURERS AND DOCTORS AS GREEDY IT ALLOWED INTO THE PLANNING PROCESS PRIMARILY THOSE WHO REPRESENTED DEMOCRATIC MEMBERS OF CONGRESS AND GOVERNMENT STAFF ASKED THEM TO CONSIDER ONLY DISCONNECTED PARTS OF THE PROBLEM AND GAVE PARTICIPANTS AND OUTSIDERS NO MECHANISM FOR ENSURING THAT THE POLICY IDEAS WERE CONSISTENT WITH OTHERS OR ACTUAL EXPERIENCE I'VE CONDUCTED EXIT INTERVIEWS WITH DOZENS OF HEALTH CARE LEADERS EMPLOYERS AND POLITICIANS OF BOTH PARTIES WHO HAVE MET WITH TOP WHITE HOUSE OFFICIALS THEY LEFT THEIR MEETINGS WITH THE WARM ILLUSORY GLOW OF SITTING AT THE CENTER OF POWER BUT REALIZED THEY HAD BEEN EXPOSED TO ONLY PART OF THE PROPOSED POLICIES AND TOLD THINGS THAT MADE THEM FEEL UNDERSTOOD AND SUPPORTED THEY CAME AWAY SUSPICIOUS ABOUT THE MISSING ELEMENTS OF THE POLICY THE VERY PEOPLE WHO WOULD ULTIMATELY BE ESSENTIAL TO PASSAGE OF REFORM LEGISLATION AND THEN TO ITS SUCCESSFUL IMPLEMENTATION WERE UNDERUTILIZED AND BECAME DISENCHANTED NOT SURPRISINGLY MANY IN HEALTH CARE AND CONGRESS ARE NOW BEHAVING IN A CRITICAL FASHION AND PREPARING TO ATTACK THE ANTICIPATED PROPOSALS I HAVE NOT GIVEN UP ON BRINGING THE RIVALS TOGETHER LESSON THREE FORGET THE MAGIC EMBRACE REALITY NEITHER A CEO NOR A US PRESIDENT CAN SIMPLY WILL A TRANSFORMATION OF OUR LARGEST AND MOST PROFESSIONALLY ENTRENCHED ENTERPRISE EVEN THE MOST WORTHWHILE AND EFFECTIVE INNOVATIONS WE'VE OBSERVED REMIND US THAT EVERY INITIATIVE TRIGGERS UNEXPECTED CONSEQUENCES AND EACH IMPROVEMENT TAKES LONGER THAN EXPECTED WHEN AT LAST YOU CONVINCE HOSPITAL ADMINISTRATORS THAT THEIR FACILITIES ARE COST CENTERS AND NOT PROFIT CENTERS THEY WILL DIRECT THEIR PATIENTS TO THE HOSPITAL'S NEW OUTPATIENT PROFIT CENTER INSTEAD SET THE PRICE FOR ONE CATEGORY OF SERVICES BELOW DOCTORS' EXPECTATIONS AND MORE SERVICES WILL BE DELIVERED WITH THE INCREASED VOLUME FERVENTLY JUSTIFIED BY REFERENCE TO SCIENTIFIC STUDIES AND WARNINGS OF JEOPARDIZED QUALITY OF CARE THE PRESIDENT HAS SAID THAT THE AMERICAN PUBLIC WILL BE BEST SERVED BY A MARKETDRIVEN HEALTH SYSTEM SHAPED BY COSTCONSCIOUS CONSUMER BEHAVIOR AND FINANCIALLY RESPONSIBLE PREVENTIONORIENTED PROVIDER NETWORKS ALL OPERATING WITH CLEAR UNOBTRUSIVE GOVERNMENT INCENTIVES AND STANDARDS UNFORTUNATELY HIS POLICY STAFF WERE GIVEN TWO CONTRADICTORY INSTRUCTIONS USE THE MARKETPLACE TO INDUCE SYSTEM REFORMS AND MAKE SURE ALL PUBLIC AND PRIVATE SPENDING STAYS WITHIN AN OVERALL BUDGET FIGURE SET BY WASHINGTON THEY PRODUCED A COMPROMISED POLICY THAT COMBINES WEAK INCENTIVES FOR COSTCONSCIOUS CONSUMER AND PROVIDER BEHAVIOR WITH WEAK GOVERNMENT CONTROLS IT HAS LITTLE POLITICAL APPEAL AND IS NOT AGGRESSIVE ENOUGH TO ACHIEVE EITHER ITS ECONOMIC OR ITS CLINICAL OBJECTIVES WHAT CAN THE PRESIDENT DO NOW FIRST HE CAN JOIN THE EXISTING CONSENSUS SUPPORTING CHANGES IN THE WAY HEALTH CARE SERVICES ARE ORGANIZED AND DELIVERED PRIVATE SECTOR REFORMS ARE ALREADY COMPELLING MANY INDIVIDUALS TO SEEK NEW ROLES IN THE CHANGED DELIVERY SYSTEM SUBSPECIALISTS ARE SEEKING TRAINING TO EXPAND INTO PRIMARY CARE AND PHYSICIANS ARE GIVING UP THEIR HISTORICAL INDEPENDENCE TO JOIN GROUPS HMOS AND EVEN ACCEPT SALARIED POSITIONS THE PRESIDENT MUST COMMIT HIMSELF TO A SET OF STRUCTURAL ARRANGEMENTS AND ACCOUNTABILITY STANDARDS THAT WILL ENCOURAGE ALL PARTIES TO MAKE CRITICAL CHANGES IN THEIR CAREERS AND ORGANIZATIONAL AFFILIATIONS MANY OF THE MOST ARDUOUS AND CRITICAL CHANGES IN HEALTH CARE CAN THEN PROCEED WITHOUT NEW LEGISLATION SECOND THE ADMINISTRATION NEEDS TO TONE DOWN THE RHETORIC SURROUNDING HEALTH CARE REFORM THE CURRENT WHITE HOUSE PLAN FOR A FALL MEDIA BLITZ IS SADLY ADVERSARIAL DEVELOP AN ADMINISTRATION PROPOSAL KNOWN TO BE UNACCEPTABLE TO CONGRESSIONAL LEADERS SELL IT TO THE PUBLIC WITH SOLICITOUS ALLIES MEDIA EVENTS AND TOWN MEETINGS THEN TRY TO FORCE A DEAL WITH CONGRESS INSTEAD THE PRESIDENT SHOULD PRESENT HIS BLUEPRINT FOR REFORM EXPLAIN IT AND LISTEN CAREFULLY TO THE RESPONSE THIRD THE ADMINISTRATION CANNOT RELY ON A PURELY GOVERNMENTCONCEIVED SOLUTION TO THE PROBLEM OF FINANCING COVERAGE FOR ALL AMERICANS ONLY THE GOVERNMENT HAS THE DATA TO ASSESS THE ENTIRE HEALTH CARE ECONOMY BUT ONLY PURCHASERS HAVE DIRECT EXPERIENCE IN COSTING ALTERNATIVE BENEFIT OFFERINGS SELECTING AMONG COMPETING PROVIDERS AND ENCOURAGING EMPLOYEES TO SELECT COSTEFFECTIVE DELIVERY SYSTEMS ONLY THEY CAN PREDICT THE EFFECT OF NEW FINANCING STRATEGIES ON THEIR OWN BUSINESS PRACTICES SMALL BUSINESSES FOR THEIR PART NEED TO STOP EXAGGERATING THE NEGATIVE CONSEQUENCES OF HELPING TO COVER THEIR EMPLOYEES' HEALTH INSURANCE COSTS UNIVERSAL INSURANCE COVERAGE WILL INVOLVE NEW ALLOCATIONS OF RESPONSIBILITY AMONG STATE AND FEDERAL GOVERNMENTS SMALL AND LARGE EMPLOYERS AND INDIVIDUAL CITIZENS IT WILL INEVITABLY TAKE MORE TIME THAN WE WISH AND REFLECT POLITICAL AS MUCH AS ECONOMIC REALITIES IF FRANK AND COLLABORATIVE DISCUSSIONS THAT GENERATE SHARED COMMITMENT SLOW THE PROCESS NOW THEY WILL SPEED IT UP LATER THOSE WHO ACTUALLY PAY FOR AND DELIVER CARE ARE READY TO STEP UP THEIR EFFORTS AT REFORM CONGRESSIONAL MODERATES OF BOTH PARTIES AND MANY STATE LEADERS ARE IN AGREEMENT ABOUT THE ROLE OF GOVERNMENT IN ESTABLISHING RATIONAL INCENTIVES FOR COSTCONSCIOUS CONSUMER BEHAVIOR AND SETTING STANDARDS FOR A FAIR MARKETPLACE THE NATION IS READY FOR CLEAR ARTICULATE LEADERSHIP AND DOES WISH FOR HEALTH SECURITY IN MY FANTASY WORLD OF RATIONAL BIPARTISAN POLICY MAKING THE PARTIES WOULD JOINTLY EMBRACE THIS APPROACH BEFORE THE PRESIDENT OVERCOMMITS HIMSELF PUBLICLY TO SPECIFIC INITIATIVES BUT EVEN IN THE REAL WORLD FUNDAMENTAL AND SUCCESSFUL REFORM CAN STILL HAPPEN IF OUR LEADERS STICK TO CORE PRINCIPLES REDUCE THE RHETORIC AND LEARN TO LEVERAGE OUR MANY RECENT SUCCESSES DR ELLWOOD IS PRESIDENT OF INTERSTUDY AND THE JACKSON HOLE GROUP A HEALTHCARE REFORM POLICY THINK TANK 9308100080 930810 WHO'S NEWS IN A NEW OFFENSIVE AT&T REASSIGNS NACCHIO TO FIGHT LONGDISTANCE RIVALS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTING A NEW OFFENSIVE IN THE WAR TO KEEP CONSUMERS FROM FLEEING ITS SERVICES AMERICAN TELEPHONE & TELEGRAPH CO TURNED TO A STREET FIGHTER TO SMACK ITS LONGDISTANCE RIVALS THE REASSIGNMENT OF JOSEPH NACCHIO 44 YEARS OLD CURRENTLY HEAD OF AT&T'S BUSINESS COMMUNICATIONS SERVICES TO CHIEF OF ITS RESIDENTIAL LONGDISTANCE BUSINESS WAS ONE OF SEVERAL ANNOUNCED YESTERDAY BY AT&T AS PART OF A MANAGEMENT SHAKEUP THAT BEGAN IN LATE JULY AT&T SAID YESTERDAY'S NEW APPOINTMENTS WOULD FURTHER ITS GLOBALIZATION AND EXPANSION INTO NEW MULTIMEDIA PRODUCTS AND SERVICES THAT HARNESS THE POWER OF COMPUTERS COMMUNICATIONS AND VIDEO TECHNOLOGIES BUT THE CHANGE MAY ALSO RADICALLY ALTER THE CONSUMER LONGDISTANCE MARKET AS AT&T IS SURE TO MARKET MORE AGGRESSIVELY ITS CONSUMER SERVICES UNDER MR NACCHIO AS EXPECTED AT&T REASSIGNED MERRILL TUTTON 51 THE PRESIDENT OF ITS CONSUMER COMMUNICATION SERVICES UNIT TO SENIOR VICE PRESIDENT GLOBAL STRATEGY MR TUTTON'S FORMER UNIT WITH 20 BILLION IN ANNUAL REVENUE HAS BEEN UNDER A RELENTLESS ATTACK FROM DISCOUNT PLANS OFFERED BY RIVALS MCI COMMUNICATIONS CORP AND SPRINT CORP IN REASSIGNING MR TUTTON AT&T PASSED THE REINS OF ONE OF ITS MOST PUBLICLY VISIBLE BUSINESSES TO ONE OF ITS MOST COMBATIVE MARKETERS MR NACCHIO JOHN C PETRILLO 44 CURRENTLY VICE PRESIDENT OF STRATEGIC PLANNING FOR THE COMMUNICATIONS SERVICES GROUP WAS NAMED TO SUCCEED MR NACCHIO ON THE BUSINESS SERVICES SIDE AS THE PRESIDENT OF AT&T'S BUSINESS SERVICES UNIT WHICH ALSO GENERATES ABOUT 20 BILLION IN ANNUAL REVENUE MR NACCHIO SUCCESSFULLY HELD THE LINE AGAINST MCI AND SPRINT HE DID THIS BY USING ELABORATE MULTIYEAR CONTRACTS THAT LOCKED MOST OF AT&T'S BUSINESS CUSTOMERS INTO LONGTERM SERVICE ARRANGEMENTS AN AT&T SPOKESMAN DOWNPLAYED THE CHANGE SAYING MR TUTTON WAS BEING SUMMONED TO FURTHER THE COMPANY'S GLOBAL AMBITIONS AS SUCH HE WILL REPORT JOINTLY TO VICTOR PELSON THE NEWLY APPOINTED CHIEF OF GLOBAL OPERATIONS AT AT&T AND TO ALEX MANDL THE NEW EXECUTIVE VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AT&T'S COMMUNICATIONS SERVICES GROUP WHICH ACCOUNTS FOR TWOTHIRDS OF AT&T'S 65 BILLION IN ANNUAL REVENUE YESTERDAY MR MANDL DEFENDED MR TUTTON'S STEWARDSHIP SAYING THE UNIT HAD MADE SUBSTANTIAL STRIDES AGAINST ITS COMPETITORS INCLUDING ATTEMPTING TO KEEP LOW PRICING FROM KILLING INDUSTRY PROFITS MESSRS TUTTON AND NACCHIO HE ADDED HAD EACH REACHED A CERTAIN PLATEAU AND NOW WE'LL LOOK FOR NEW LEVELS OF ACHIEVEMENT FROM THEM BUT AT&T INSIDERS SAID AT&T CHAIRMAN ROBERT E ALLEN WAS ANXIOUS TO TURN AT&T INTO A MORE PROACTIVE MARKETER OF CONSUMER LONGDISTANCE SERVICES RATHER THAN THE REACTIVE STANCE IT HAS SEEMINGLY TAKEN TO MCI'S AND SPRINT'S MOVES IN THE PAST TWO YEARS IN CONTRAST TO MR TUTTON'S EASYGOING STYLE MR NACCHIO A BROOKLYN NATIVE AGGRESSIVELY PUSHED AGAINST THE FEDERAL REGULATORY RESTRAINTS THAT AT&T COMPLAINED HAD HAMPERED IT IN THE MARKETPLACE IN THE LATEST TEST OF MR NACCHIO'S MARKETING SAVVY AT&T MANAGED TO HOLD THE LINE AGAINST MCI'S AND SPRINT'S ATTEMPTS TO WIN BUSINESS CUSTOMERS TO THEIR RESPECTIVE TOLLFREE 800 SERVICES A FEDERAL COMMUNICATIONS COMMISSION RULE THAT TOOK EFFECT IN MAY WAS SUPPOSED TO INCREASE COMPETITION IN THE MARKET NOW DOMINATED BY AT&T BUT BY THE END OF JULY AT&T HAD MANAGED TO RESIGN 505 OF ITS 531 LARGEST CORPORATE ACCOUNTS AND PICK UP 710 MILLION IN ADDITIONAL BUSINESS HARDLY A MAJOR WIN FOR ITS RIVALS SAID ROBERT B MORRIS III AN ANALYST AT GOLDMAN SACHS & CO NOW MCI SPRINT AND OTHERS WILL FACE A SIMILAR ATTACK IN THE CONSUMER MARKET MR MORRIS SAID JOE MATCHES THEM ALMOST INSTANTANEOUSLY AT&T DID NOT DISPUTE MR MORRIS'S NUMBERS CONVERSELY MCI'S FRIENDS & FAMILY DISCOUNT LONGDISTANCE PLAN AND SPRINT'S THE MOST HAVE ATTRACTED MILLIONS OF AT&T CUSTOMERS WHILE AT&T HAS BEEN FORCED TO RETALIATE WITH ITS OWN SERVICES SUCH AS THE I PLAN WHICH MANY ANALYSTS REGARD AS FUZZY ANOTHER SERVICE AT&T TRUEVOICE IS ACTUALLY A NETWORK UPGRADE THAT MAKES AN AT&T VOICE CALL DEMONSTRABLY CLEARER THAN ITS RIVALS' SERVICES IN OTHER MANAGEMENT CHANGES AT&T CUT A LAYER OF SENIOR MANAGEMENT OUT OF ITS LONGDISTANCE UNIT MOVING JOHN E BERNDT 53 CURRENTLY PRESIDENT OF BUSINESS SERVICES TO PRESIDENT NEW BUSINESS DEVELOPMENT IN THE MULTIMEDIA PRODUCTS AND SERVICES GROUP HEADED BY ROBERT M KAVNER ADDITIONALLY ROBERT J RANALLI 56 CURRENTLY PRESIDENT OF CONSUMER SERVICES WHICH INCLUDED MR TUTTON'S FORMER UNIT WAS NAMED PRESIDENT OF AT&T MULTIMEDIA SERVICES HE WILL BE RESPONSIBLE FOR CREATING AND DEVELOPING NEW BUSINESS OPPORTUNITIES RESULTING FROM THE CONVERGENCE OF THE COMMUNICATIONS COMPUTER CONSUMER ELECTRONICS AND ENTERTAINMENT INDUSTRIES AT&T SAID AND HE WILL REPORT JOINTLY TO MESSRS KAVNER AND MANDL 9308100079 930810 BUSINESS WORLD HOSPITALS' CHARTS TAKE A TURN FOR THE WORSE BY TIM W FERGUSON MILITARYRELATED INDUSTRIES AREN'T ALONE IN LOSING WELLPAYING JOBS AS A RESULT OF SHIFTING PUBLIC POLICY HEALTH CARE PARTICULARLY AT THE HOSPITAL END HAS BEGUN SPIRALING DOWN WITH PATIENT COUNTS DROPPING DRAMATICALLY IN RECENT MONTHS AND LAYOFFS GAINING LIKE DEFENSE MEDICINE WAS A GROWTH AGENT IN THE 1980S HOSPITALS AND OTHER HEALTH SERVICES ADDED 2 1/2 MILLION JOBS TO SURPASS 10 MILLION BUT NOW THAT EACH OF THOSE SECTORS IS DEEMED TO HAVE DEVOURED TOO MUCH OF THE NATION'S RESOURCES THE ECONOMY MUST LIFT OFF WITHOUT TWO OF ITS MOST POWERFUL RECENT ENGINES IN HEALTH CARE THE REDUCTIONS RESPOND TO MEDICARE REIMBURSEMENT CURBS AND ANTICIPATE WHATEVER MANAGED SCHEME MAY EMERGE FROM THE WHITE HOUSE AND CONGRESS ALTHOUGH MOST AGREE THAT THE 1980S' PACE OF GROWTH IN MEDICAL COSTS WAS NO MORE SUSTAINABLE THAN THE MILITARY BUILDUP UNCERTAINTY CREATED BY THE SINCEABANDONED HILLARY CLINTON TASK FORCE IS BEING BLAMED FOR AGGRAVATING A DOWNTURN IN THE FIELD WHATEVER NEW REGULATION OR TAXES MAY BE FORTHCOMING AND MAY IS A CRITICAL WORD GIVEN BILL CLINTON'S TENUOUS HOLD ON THE POLITICS OF THE ECONOMY BUSINESS RECOILS WHEN IT DOESN'T KNOW WHAT TO EXPECT THE BIGGER FACTOR HOWEVER MAY BE INITIATIVES IN THE MEDICAL MARKETPLACE SUCH AS IT IS PRIVATE EMPLOYERS AND THEIR INSURERS HAVE CRACKED DOWN ON COSTS AND THE PROVIDERS ARE FEELING IT PATIENTS TOO ARE SHOWING MORE RESTRAINT AND HOSPITALS AND OTHER MEDICAL FACILITIES ARE AS THE PHRASE GOES PROACTIVELY DOWNSIZING IN ORDER TO POSITION THEMSELVES BETTER FOR MANAGEDCARE NETWORKS TO COME ANECDOTAL BUT PERVASIVE EVIDENCE SUGGESTS THAT MANY HOSPITALS' OCCUPANCY RATES HAVE DROPPED 20 THIS YEAR PRESTIGE IS NO PROTECTION IN LOS ANGELES UCLA MEDICAL CENTER REPORTS IT IS ONETHIRD EMPTY AND CEDARSSINAI ALSO IS CONSIDERABLY BELOW ITS TRADITIONALLY FULL CENSUS SOME HOSPITALS WON'T PROVIDE INFORMATION AT ALL OVERBEDDING HAS BEEN A SORE POINT GOING BACK TO THE 1970S AND IN FACT NEARLY 10 OF COMMUNITY HOSPITALS AROUND THE US CLOSED AFTER 1980 BUT THIS YEAR IS A SPECIAL CASE LAST MARCH MODERN HEALTHCARE BILLED ONE OF ITS WEEKLY COVERS FAREWELL TO HIGH HOSPITAL PRICES NOW WE SEE WINGS OF FACILITIES BEING MOTHBALLED AND EXPANSIONS CURTAILED STAFF CUTBACKS NATURALLY HAVE FOLLOWED THE PATIENT DROPOFF AND THESE HAVE FALLEN MOST DIRECTLY ON NURSES THE SHORTAGE SO FRETTED OVER NOT LONG AGO IS NO MORE THE UPWARD MARCH OF NURSING SALARIES TO THE POINT WHERE REGISTERED NURSES START AT 34000 PLUS SHIFT DIFFERENTIALS HAS ALL BUT STOPPED THE US GOVERNMENT IS STILL HIRING HOWEVER IT JUST SET UP A SPECIAL PHONE LINE800 800USRNTO PLACE NURSES HOW DO THE NEW ECONOMICS OF HEALTH CARE TRANSLATE INTO LESS VOLUME FEWER OVERNIGHT STAYS FOR ONE THING BOTH PAYER PRESSURE AND TECHNOLOGICAL ADVANCEMENTS HAVE SPURRED OUTPATIENT HANDLING WHICH NOW ACCOUNTS FOR MORE THAN HALF OF ALL HOSPITAL SURGERIES ALSO IT IS POSSIBLE THAT AS PATIENTS ARE PERMITTED LESS OPPORTUNITY TO SHOP AROUND FOR MEDICAL OPINIONS THEY WILL BE LESS LIKELY TO FIND A DOCTOR WHO WILL RECOMMEND AN OPERATION CONDITIONS IN THE OVERALL ECONOMY ALSO MAY BE DISCOURAGING HOSPITAL USAGE AND NOT JUST BECAUSE MORE PEOPLE ARE WITHOUT MEDICAL INSURANCE BECAUSE MOST PROCEDURES ARE NOT URGENT A WOULDBE PATIENT CAN CHOOSE TO PUT THEM OFF UNTIL HIS OWN FINANCES ARE STRONGER OR PERHAPS UNTIL SUCH TIME AS HIS EMPLOYER IS NO LONGER LOOKING TO LAY OFF PEOPLE WHO MISS TOO MANY WORKDAYS DECLINES IN HOSPITALIZATION ARE ALL THE MORE IMPRESSIVE WHEN YOU FIGURE THAT INCREASES IN THE POPULATION OF THE VERY OLD ARE PUSHING USAGE UP ADMISSIONS OF THOSE OVER 65 HAVE BEEN RISING SINCE 1987 THE FALL HAS BEEN ENTIRELY AMONG YOUNGER AGE GROUPS THIS ALSO TENDS TO MEAN A SICKER PATIENT LOAD BAD NEWS FOR BOTH THE HOSPITALS' BOOKS AND THEIR SHRUNKEN STAFFS LEANER AND UNCERTAIN TIMES IN HEALTH CARE HAVEN'T BEEN LIMITED TO HOSPITALS EQUIPMENT SUPPLIERS OF COURSE ARE AFFECTED BUT SO ARE OTHER PROVIDERS OF CLINICAL SERVICES EVEN A NUMBER OF HMOS WHICH ARE SUPPOSED TO REPRESENT THE FUTURE OF MEDICINE ARE CINCHING THEIR BELTS IN CALIFORNIA PHYSICIANS GROUSE THAT ONLY THOSE WITH WORKERCOMPENSATION OR MEDLEGAL LITIGATION SPECIALTIES ARE BUSY IF MEDICALINSURANCE COVERAGE EVER WERE EXTENDED TO THE FAMOUS 37 MILLION AMERICANS NOT CURRENTLY COVERED A RESURGENCE IN PATIENT NUMBERS MIGHT BE EXPECTED BUT IF THAT WERE ACCOMPANIED BY GLOBAL BUDGETING THAT CAPPED OVERALL EXPENDITURES WHO KNOWS AS WITH THE PEACE DIVIDEND THE SQUEEZE ON MEDICINE'S 14 OF GDP IS GOING TO CAUSE SOME PAIN IT WOULD BE WORTHWHILE IF WE COULD BE CONFIDENT THAT A MORE RATIONAL AND NOT SIMPLY CRIMPED SYSTEM WOULD RESULT IF FOR INSTANCE THE MOST INEFFICIENT AND INEFFECTIVE UNITS WERE CLOSED RATHER THAN THE BEST PEOPLE BEING DISCOURAGED FROM PRACTICING BUT BECAUSE SO MUCH OF MEDICINE STARTS WITH THE TAXPAYER DOLLAR POLITICS WILL PLAY AS BIG A PART AS ECONOMICS ALAS WE CAN'T EXPECT ANY VETERANS HOSPITALS OR OTHER SIGNIFICANT SACRED COWS TO BE SHUT IN FAVOR OF TREATMENT VOUCHERS THAT COULD ACTUALLY PERMIT THE PATIENTS IN THEM TO GET BETTER CARE LESS EXPENSIVELY OBVIOUSLY AN IRATYPE SYSTEM THAT PROMOTES INDIVIDUAL CONSUMER CHOICE AND DISCIPLINE IN THE OVERALL HEALTHCARE SYSTEM IS NOT GOING TO BE PART OF THE HILLARY PLAN MRS CLINTON SPOKE TO THE AMERICAN HOSPITAL ASSOCIATION YESTERDAY IN ORLANDO AND IF HER IDEAS ABOUT ANTITRUST WAIVERS WEREN'T OUT OF FANTASYLAND NEITHER DID THEY SUGGEST ANY ALADDINLIKE AID FROM THE ADMINISTRATION A DISTORTED MARKETPLACE IS JUST GOING TO HAVE TO STRUGGLE TOWARD ITS OWN RESOLUTION AT THE COST OF MORE THAN A FEW LIVELIHOODS THE PRESIDENT HAS ALWAYS STRESSED THE LINKAGE BETWEEN HEALTH CARE AND THE LARGER ECONOMY AND ON THAT POINT HE IS ALREADY BEING PROVED RIGHT ON ANOTHER DOCTOR FRONT THE PRESIDENT OF THE AMERICAN DENTAL ASSOCIATION IN LAST THURSDAY'S LETTERS COLUMN DID HIS UNWITTING BEST TO SUPPORT MY CASE AGAINST LICENSURE RESTRICTIONS ON HYGIENISTS HE ROLLED OUT THE OLD WE KNOW BETTER LINE WHAT HE MIGHT HAVE SAID INSTEAD IS THAT THE HYGIENIST CAUSE IS NOT SIMPLY TO PRACTICE INDEPENDENTLY FROM DENTISTS WHICH FEW OF THEM DO EVEN WHERE THEY'RE ALLOWED RATHER THEY'RE INTERESTED IN THE ABILITY TO IMPOSE PRACTICE STANDARDS THAT COULD PREVENT THE SUBSTITUTION OF LOWERPAID DENTAL ASSISTANTS IN TEETHCLEANING TASKS SOMEWHERE IN THIS THERE OUGHT TO BE ROOM FOR INFORMED CHOICE BY THOSE OF US IN THE CHAIR WITH THE THINGAMAJIG STUCK IN OUR MOUTHS EVEN IF WE CAN'T QUITE MAKE OURSELVES UNDERSTOOD 9308100077 930810 INTERNATIONAL VW IS SAID TO TIE LOPEZ TO DESTROYING GM'S DOCUMENTS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL J IGNACIO LOPEZ DE ARRIORTUA THE CENTRAL FIGURE IN GENERAL MOTORS CORP'S ALLEGATIONS OF INDUSTRIAL ESPIONAGE WAS AMONG THE FORMER GM EMPLOYEES THAT VOLKSWAGEN AG HAS ACKNOWLEDGED DESTROYED GM DOCUMENTS ACCORDING TO A REPORT BY THE GERMAN NEWS AGENCY DEUTSCHE PRESSE AGENTUR YESTERDAY VW OFFICIALS DECLINED TO CONFIRM OR DENY WHETHER MR LOPEZ WAS PERSONALLY INVOLVED IN THE DESTRUCTION OF DOCUMENTS BUT DEUTSCHE PRESSE AGENTUR QUOTED A DOCUMENT PRESENTED TO THE VW SUPERVISORY BOARD FRIDAY NIGHT AS SAYING THAT MR LOPEZ PERSONALLY ORDERED CONFIDENTIAL DOCUMENTS FROM GM AND ITS GERMAN SUBSIDIARY ADAM OPEL AG TO BE DESTROYED ABOUT A WEEK AFTER HE BEGAN WORKING FOR VW VW OFFICIALS MEANWHILE SEEMED TO BE DISTANCING THEMSELVES FROM MR LOPEZ AND THE SEVEN FORMER GM OFFICIALS WHO FOLLOWED HIM TO VW IN MARCH VW SAID THAT IF GERMAN PUBLIC PROSECUTORS WHO ARE INVESTIGATING THE MATTER FOUND THAT THOSE MEN HAD FAILED TO ACT PROPERLY TOWARD THEIR FORMER EMPLOYER THAT WAS A PROBLEM BETWEEN GM AND THEIR FORMER EMPLOYEES NOT A VW PROBLEM THE INCREASINGLY CONVOLUTED STATEMENTS BY VW AREN'T GOING UNNOTICED BY THE DARMSTADT PUBLIC PROSECUTOR'S OFFICE WHICH OBSERVED THAT VW FIRST SAID THERE WERE NO GM DOCUMENTS THEN SAID THAT IF THERE WERE ANY THEY WERE PLANTED BY GM AND NOW CLAIMS THAT ANY SENSITIVE DOCUMENTS WERE DESTROYED TO PREVENT THE CIRCLE OF INDUSTRIAL ESPIONAGE FROM BEING COMPLETED VW OFFICIALS DECLINED TO COMMENT BUT MR LOPEZ HAD SAID IN A SWORN AFFIDAVIT SUBMITTED TO A HAMBURG COURT I AND MY COLLEAGUES WHO FOLLOWED ME TO VW DID NOT TAKE SECRET GM DOCUMENTS AND GIVE THEM TO VW ALL SECRET GM DOCUMENTS WITH WHICH I AND MY COLLEAGUES WORKED HAVE REMAINED AT GENERAL MOTORS CORP THE PROSECUTORS WOULDN'T GIVE ANY TIME FRAME FOR WHEN THEIR INVESTIGATION WOULD BE COMPLETED BUT TOP VW OFFICIALS ARE BEING SUMMONED TO THEIR OFFICES THE PROSECUTORS ALSO HAVE RECEIVED THE STATEMENT MR LOPEZ PRESENTED FRIDAY TO THE VW SUPERVISORY BOARD BUT REFUSED TO DISCLOSE ITS CONTENTS AS DID VW OFFICIALS VW'S FINANCE CHIEF WERNER SCHMIDT MEANWHILE GAVE A TELEVISION INTERVIEW YESTERDAY TRYING TO DRIVE HOME THE COMPANY'S POSITIVE PREDICTIONS AFTER 16 BILLION MARKS 944 MILLION OF LOSSES IN THE FIRST HALF OF 1993 THE COMPANY IS NOW OPERATING IN THE BLACK AND IN 1994 WILL SHOW A GOOD POSITIVE RESULT MR SCHMIDT SAID VW'S LOSS IN THE FIRST HALF OF 1993 COMPARED WITH A NET PROFIT OF 445 MILLION MARKS IN THE SAME PERIOD LAST YEAR SALES IN THE FIRST SIX MONTHS FELL 11 TO 39 BILLION MARKS FROM 4375 BILLION STOCK TRADERS HOWEVER WERE RELATIVELY UNIMPRESSED BY THE PROMISES OF BETTER TIMES AHEAD FOR VW IN FRANKFURT TRADING MONDAY THE STOCK SLIPPED 280 MARKS TO CLOSE AT 37120 MARKS 9308100076 930810 REVIEW & OUTLOOK EDITORIAL THE OTHER TAXES ON JOBS IN THE DEBATE OVER THE TAX BILL SEN JOHN CHAFEE OF RHODE ISLAND HARPED ON ITS JOBSKILLING EFFECT AND RIGHTLY SO HE HAD SPECIAL REASON TO BE CONCERNED ABOUT THAT ASPECT HOWEVER BECAUSE HIS HOME STATE HAS ONE OF THE WORST UNEMPLOYMENT SITUATIONS IN THE NATION THE PROBLEM ISN'T JUST RHODE ISLAND'S JOBLESS RATE WHICH AT ABOUT 8 IS HIGH BUT NOT OUT OF LINE WITH THE REST OF SLUMPING NEW ENGLAND BUT THE WAY THAT THE STATE'S DOLE COMPOUNDS ITS EMPLOYMENT WOES A NEW SURVEY FROM LAURDAN ASSOCIATES OF MARYLAND SHOWS THE AVERAGE PEREMPLOYEE TAX FOR UNEMPLOYMENT INSURANCE IN THE TINY OCEAN STATE EXCEEDED 633 THIS YEAR BY FAR THE HIGHEST IN THE US AND AN INCREASE OF 68 SINCE 1989 BY CONTRAST THE LOWEST AVERAGE WAS IN SOUTH DAKOTA AT 91 A HEAD WHICH MEANS THAT EMPLOYERS THERE CAN ENJOY BETWEEN THE TWO LOCALES A 542 DIFFERENTIAL RIGHT OFF THE BAT IN THE COST OF HIRING A WORKER NO WONDER THAT SOUTH DAKOTA IS ONE OF THE NATION'S TOP GROWTH STORIES OF RECENT YEARS WITH A JOBLESS RATE THAT IS NOW UNDER 3 MUCH OF THIS DISPARITY IS SELFFULFILLING UNEMPLOYMENT TAX RATES RISE AND FALL ALONG WITH JOBLESSNESS ALTHOUGH USUALLY WITH A LAG BUT IN OTHER RESPECTS THE BURDEN IS EVENED MUCH OF THE TAX IS DETERMINED BY THE FEDERAL GOVERNMENT AND IT IS AN EQUALOPPORTUNITY BLUNDERBUSS CONGRESS OF COURSE HAS BUILT COUNTLESS PERVERSE INCENTIVES INTO THE BENEFIT PROGRAM NATIONWIDE AND HAS A HABIT OF HANDING OUT MORE OF THIS ECONOMIC METHADONE WHENEVER POLITICAL PRESSURES MOUNT BUT IF THE GOOFY FEDERALISM OF UNEMPLOYMENT INSURANCE CRIES OUT FOR CHANGING THE STATES ALREADY CAN AFFECT THEIR FATES BY HOW TIGHT OR LOOSE THEY CHOOSE TO BE IT IS THEREFORE NOT SURPRISING THAT LIBERAL STATES TEND TO BE AT THE TOP OF THE JOBLESS TAX RANGE AND CONSERVATIVE ONES NEAR THE BOTTOM TO A GREAT EXTENT RELATIVE WAGE LEVELS DETERMINE THIS RANKING BECAUSE BENEFITS ARE A FUNCTION OF THEM BUT NOT ALWAYS IS THIS TRUE STATES FOR EXAMPLE HAVE LEEWAY IN HOW MUCH OF THE WAGE BASE THEY WILL TAX ANYWHERE FROM 7000 TO 23000 IN VARIOUS WAYS THEY ALSO DECIDE WHETHER EMPLOYERS WHO DRAIN THE SYSTEM WITH FREQUENT LAYOFFS GET A FREE RIDE OR MUST PAY THEIR RIGHTFUL SHARE OF THE COSTS THERE IS SOME LATITUDE IN SETTING BENEFIT LEVELS TOO LAURDAN ASSOCIATES HAS OTHER MEASURES THAT SPEAK TO STATE ATTITUDES TOWARD GETTING PEOPLE OFF THE DOLE THE AVERAGE DURATION OF BENEFIT PAYMENTS AND THE PERCENTAGE OF RECIPIENTS WHO EXHAUST THEIR ALLOTMENT TO THE LAST NICKEL THESE TOO CAN BE A FUNCTION OF THE ECONOMY BUT IS THERE AN ECONOMIC REASON WHY THE DISTRICT OF COLUMBIA WOULD BE WORST IN THE NATION IN BOTH SOUTH DAKOTA IS SECOND BEST HERE TRAILING ONLY NORTH CAROLINA MICHIGAN WHICH HAS HAD PLENTY OF JOBLESSNESS WAS 11TH BEST IN 1992 IN GETTING PEOPLE BACK TO WORK ROBERT TOPEL OF THE UNIVERSITY OF CHICAGO FOUND IN DATA FROM 197781 EVIDENCE THAT JOBLESS BENEFITS CAUSE A THIRD TO A HALF OF THE TIME SPENT UNEMPLOYED AFTER THAT THE PROGRAMS GOT A LITTLE LEANER BUT THEY STILL BLOAT IN RECESSION AS OVER THE LAST FOUR YEARS ONLY A FEW STATES SUCH AS SOUTH DAKOTA AND INDIANA HAVE MANAGED TO KEEP COSTS HEADED DOWN UNEMPLOYMENT INSURANCE IS ONE OF A NUMBER OF PAYROLL COSTS THAT DESTROY JOBS THE FAMILY LEAVE ACT WHICH JUST WENT INTO EFFECT IS ANOTHER SEN CHAFEE AND MOST OF HIS COLLEAGUES HAVE BEEN BIG SUPPORTERS OF MANY OF THESE REQUIREMENTS THE RHODE ISLANDS OF THIS COUNTRY APPRECIATE A STAND AGAINST DIRECT TAX INCREASES BUT THEY WOULD GAIN FROM RESISTANCE TO THE SNEAKY JOB KILLERS AS WELL 9308100075 930810 ECONOMY IACOCCA FILES TO SELL SHARES HELD IN CHRYSLER BY JACQUELINE MITCHELL AND OSCAR SURIS STAFF REPORTERS OF THE WALL STREET JOURNAL HIGHLAND PARK MICH RETIRED CHRYSLER CORP CHAIRMAN LEE IACOCCA WHO WORKED FOR A 1 A YEAR DURING THE AUTO MAKER'S LEAN YEARS IN THE EARLY 1980S IS CASHING IN NOW THE 69YEAROLD MR IACOCCA FILED LAST WEEK WITH THE SECURITIES AND EXCHANGE COMMISSION A REGISTRATION TO SELL 12 MILLION COMMON SHARES OF THE COMPANY HE RAN UNTIL LAST DECEMBER HE INDICATED IN THE FILING THAT THE PROPOSED SALE WOULD TAKE PLACE ON OR AROUND AUG AT THE CLOSING PRICE OF 44375 ON AUG 2 MR IACOCCA WOULD HAVE SOLD THE SHARES FOR 533 MILLION THAT'S NEARLY FIVE TIMES THE 114 MILLION HE COLLECTED FOR SELLING 450000 SHARES OVER A 12MONTH PERIOD ENDING IN MAY THE MOST RECENT DATA AVAILABLE ACCORDING TO INVEST/NET INC A COMPANY THAT TRACKS INSIDER TRANSACTIONS CHRYSLER'S STOCK HAS RISEN 10 SO FAR THIS YEAR FROM A LOW OF 39125 IN JANUARY A MONTH AFTER MR IACOCCA RETIRED AFTER 14 YEARS WITH THE COMPANY CHRYSLER HAS POSTED RECORD PROFITS ON THE STRENGTH OF SUCCESSFUL NEW PRODUCTS SUCH AS ITS LH SEDANS JEEP GRAND CHEROKEE SPORT UTILITY VEHICLE AND ITS MINIVANS THE STOCK CLOSED YESTERDAY AT 43 UP 1125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING A CHRYSLER SPOKESMAN SAID THE PROPOSED SALE MAY BE THE LARGEST EVER BY MR IACOCCA WHO REMAINS ON THE CHRYSLER BOARD IT REPRESENTS ONLY A SCANT AMOUNT OF THE 351 MILLION OUTSTANDING CHRYSLER SHARES AND IT'S LESS THAN LESS THAN HALF OF THE 29 MILLION SHARES OWNED BY MR IACOCCA ACCORDING TO CHRYSLER'S PROXY STATEMENT ISSUED IN APRIL THE CHRYSLER SPOKESMAN COULDN'T CONFIRM WHETHER MR IACOCCA ACTUALLY SOLD THE SHARES MR IACOCCA COULDN'T BE REACHED FOR COMMENT IF HE DID SELL THE SHARES HE WOULD HAVE TO DISCLOSE THAT FACT IN A SEPARATE SEC FILING NEXT MONTH MR IACOCCA IS PROFITING FROM HIS TENURE AS CHIEF OF A ONCEAILING AUTO COMPANY THAT HAS NOW TURNED AROUND HE BROUGHT CHRYSLER BACK FROM THE BRINK OF BANKRUPTCY AND VIRTUALLY REBUILT THE NO 3 AUTO MAKER'S IMAGE AND HE BECAME THE COMPANY'S PITCHMAN APPEARING IN CHRYSLER ADVERTISEMENTS ON NATIONAL TELEVISION BUT HE DREW CRITICISM IN THE LATE 1980S AND EARLY 1990S FOR FAT COMPENSATION PACKAGES AT A TIME WHEN CHRYSLER'S PERFORMANCE WAS LAGGING AGAIN AMONG OTHER THINGS HE HAD CHRYSLER BUY TWO OF HIS RESIDENCES FOR 17 MILLION AND CONTRACTED TO RECEIVE QUARTERLY STOCK AWARDS UNTIL HIS RETIREMENT HIS FAME TRANSCENDED AUTO INDUSTRY CIRCLES HIS AUTOBIOGRAPHY TOPPED THE BESTSELLER'S LIST AND HE HEADED THE STATUE OF LIBERTY RENOVATION PROJECT 9308100074 930810 WHO'S NEWS NORTHERN TELECOM LTD NORTHERN TELECOM LTD TORONTO THIS TELECOMMUNICATIONS CONCERN NAMED ALAN FRASER SENIOR VICE PRESIDENT CORPORATE SERVICES AND DON MCCREESH SENIOR VICE PRESIDENT HUMAN RESOURCES MR FRASER 42 YEARS OLD MOST RECENTLY WAS VICE PRESIDENT CORPORATE MARKETING HE SUCCEEDS ROY MERRILLS 59 NOW EXECUTIVE VICE PRESIDENT THE AMERICAS FOR NORTHERN TELECOM MR MCCREESH 45 HAD BEEN VICE PRESIDENT HUMAN RESOURCES NORTH AMERICA HE SUCCEEDS GARY DONAHEE 46 NOW PRESIDENT OF NORTHERN TELECOM CANADA LTD 9308100073 930810 FEES QUESTIONED IN US SALES OF ARMS TO CAIRO REPORT CITES COMMISSIONS PAID BY AMERICAN FIRMS UNDER FOREIGNAID PLAN BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEFENSE DEPARTMENT AUDITS CITED IN A GOVERNMENT REPORT SHOW A PATTERN OF QUESTIONABLE COMMISSIONS PAID BY AMERICAN COMPANIES SELLING MILITARY EQUIPMENT TO EGYPT UNDER THE USFINANCED FOREIGNAID PROGRAM PREPARED BY THE GENERAL ACCOUNTING OFFICE THE INVESTIGATIVE ARM OF CONGRESS THE REPORT DRAWS HEAVILY ON PREVIOUSLY UNPUBLICIZED DATA COLLECTED BY THE DEFENSE CONTRACTING AUDIT AGENCY AND ITS RELEASE COMES AS THE JUSTICE DEPARTMENT IS STEPPING UP ITS OWN INVESTIGATION OF THE AID PROGRAM INCLUDING PAYMENTS BETWEEN US COMPANIES AND AN EGYPTIAN CONCERN UNITRA WHICH HAS CLOSE TIES TO THE CAIRO GOVERNMENT YESTERDAY NEW YORKBASED LORAL CORP SAID IT RECENTLY TURNED OVER RECORDS TO THE JUSTICE DEPARTMENT THAT WERE RELATED TO A 227 MILLION MISSILE CONTRACT WITH EGYPT DEFENSE AUDITORS FOUND THAT LORAL HAD PAID MORE THAN 1 MILLION IN COMMISSIONS TO UNITRA WHICH HAS ALSO REPRESENTED SUCH MAJOR CONTRACTORS AS GENERAL ELECTRIC CO AND A UNIT OF LOCKHEED CORP ACCORDING TO THE GAO REPORT LORAL OFFICIALS WHILE CONFIRMING THAT THE PAYMENTS HAD BEEN MADE SAID ITS COMMISSIONS HAD BEEN FULLY DISCLOSED AND PROPER BUT UNITRA'S ROLE AND MORE SPECIFICALLY THAT OF EGYPTIAN BUSINESSMAN AND FORMER AIR FORCE GENERAL ALY MANSOURHAVE DRAWN ATTENTION NOT ONLY FROM JUSTICE DEPARTMENT CRIMINAL INVESTIGATORS BUT ALSO FROM THE HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL'S STAFF WHICH HAD EARLIER INVESTIGATED THE ISRAELI AID PROGRAM HAS TRAVELED TO EGYPT AND IS LOOKING AT CONTRACTS HELD BY LOS ANGELESBASED TELEDYNE INC AND ALLEGATIONS REGARDING ITS TIES WITH ANOTHER FORMER EGYPTIAN AIR FORCE GENERAL THE GAO REPORT INITIATED BY THE HOUSE APPROPRIATIONS COMMITTEE OWES ITS ORIGINS LESS TO SCANDAL IN EGYPT THAN IN ISRAEL WHERE A HIGHRANKING GENERAL RAMI DOTAN WAS CONVICTED IN 1991 OF SKIMMING TENS OF MILLIONS OF DOLLARS FROM GENERAL ELECTRIC ENGINE CONTRACTS FINANCED BY US AID THE CASE WAS A COSTLY EMBARRASSMENT FOR JERUSALEM AND LED TO A JUSTICE DEPARTMENT INVESTIGATION REACHING BEYOND GE TO OTHER US CONTRACTORS WHO WERE PART OF THE SAME DOTAN NETWORK AMONG THESE WAS NATIONAL AIRMOTIVE CORP OAKLAND CALIF WHICH RECEIVED VALUABLE ISRAELI HELICOPTERENGINE CONTRACTS AND FIGURED IN A LENGTHY INVESTIGATION BY THIS NEWSPAPER OF THE DOTAN CASE NAC AND THE US ATTORNEY'S OFFICE IN SAN FRANCISCO YESTERDAY CONFIRMED THAT THE COMPANY HAS ENTERED INTO A PLEA AGREEMENT ADMITTING TO CONSPIRACY TO DEFRAUD THE GOVERNMENT AND SUBMITTING FALSE CLAIMS THE PLEA WHICH IS EXPECTED TO BE EXECUTED LATER THIS MONTH CALLS FOR CRIMINAL AND CIVIL FINES OF 3 MILLION ACCORDING TO COURT DOCUMENTS AND ATTORNEY CHARLES STEVENS COUNSEL FOR NAC WITHIN WASHINGTON THE SAME SCANDAL HAS FORCED THE DEFENSE DEPARTMENT TO TAKE A CLOSER LOOK AT THE PRACTICE OF FOREIGNAID RECIPIENTS BUYING EQUIPMENT THROUGH DIRECT COMMERCIAL CONTRACTS WITH US COMPANIES RATHER THAN FROM THE PENTAGON THIS REVIEW AND A SEPARATE CRIMINAL CONVICTION REGARDING A CONTRACT BETWEEN EGYPT AND DETROIT ARMOR CORP RESULTED IN A DECISION BY THE DEFENSE SECURITY ASSISTANCE ADMINISTRATION TO TERMINATE THE COMMERCIAL SIDE OF THE PROGRAM EFFECTIVE JAN 1 1994 THERE IS STRONG LOBBYING NOW TO REVERSE THAT DECISION BUT THE HISTORY OF ABUSES UNDER COMMERCIAL CONTRACTS REMAINS WORRISOME TO DEFENSE AUDITORS WHO COMPLAIN OF POOR RECORDKEEPING BY US COMPANIES AND AN INABILITY TO ALLOCATE COSTS ACCURATELY TO THE CONTRACTS IN THE CASE OF COMMISSIONS COMPANIES SUCH AS LORAL CLAIM THE MONEY COMES FROM CORPORATE PROFITS AND THEREFORE IS EXEMPT FROM GOVERNMENT RULES THAT SET A 50000 CAP ON SUCH PAYMENTS BUT THE GAO REPORT SAID FUNDS FOR THE EGYPTIAN CONTRACT BECAME MINGLED WITH THOSE FOR A SIMILAR MISSILE SALE TO TAIWAN AND THIS PREVENTED AUDITORS FROM ACCURATELY TRACING ACTUAL COSTS BACK TO THE TWO ACCOUNTS IN ANOTHER CASE ALLIANT TECHSYSTEMS INC EDINA MINN HAS FOUND ITSELF CHALLENGED OVER COSTS ATTRIBUTED TO A 31 MILLION CONTRACT WITH EGYPT TO UPGRADE TORPEDOES AUDITORS SAID ALLIANT HAD A 528000 SUBCONTRACT FOR ADMINISTRATIVE AND LOGISTICS SUPPORT WITH NAVYTRON AN EGYPTIAN COMPANY MANAGED BY A RETIRED EGYPTIAN ADMIRAL AND THOUGH THERE APPEARS TO BE NO RELATIONSHIP WITH THE JUSTICE DEPARTMENT INQUIRY ALLIANT CONFIRMED YESTERDAY THAT IT WAS NEGOTIATING WITH THE DEFENSE SECURITY ASSISTANCE ADMINISTRATION OVER HOW MUCH OF THE COST OF THE SUBCONTRACT SHOULD BE DISALLOWED AND NOT BILLED TO THE US GOVERNMENT 9308100072 930810 WHO'S NEWS GENERAL ELECTRIC CO GENERAL ELECTRIC CO FAIRFIELD CONN GE NAMED FIVE OFFICERS TO NEWLY CREATED POSITIONS MAURA J ABELNTOUHEY 37 YEARS OLD WAS NAMED VICE PRESIDENT GENERAL COUNSEL GE PLASTICS PITTSFIELD MASS WHERE SHE HAD BEEN GENERAL COUNSEL STEPHEN M BENNETT 39 WAS NAMED VICE PRESIDENT SALES GE ELECTRICAL DISTRIBUTION & CONTROL PLAINVILLE CONN HE WAS PREVIOUSLY PRODUCT GENERAL MANAGER REFRIGERATION GE APPLIANCES LOUISVILLE KY SANDRA L DERICKSON 40 PRESIDENT OF GE CAPITAL AUTO FINANCIAL SERVICES BARRINGTON ILL WAS NAMED A CORPORATE OFFICER OF GE RICHARD M JACKSON JR 49 WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL GE LIGHTING CLEVELAND WHERE HE HAD BEEN GENERAL COUNSEL MICHAEL A NEAL 40 WAS NAMED SENIOR VICE PRESIDENT AND GENERAL MANAGER GE CAPITAL COMMERCIAL EQUIPMENT FINANCE DANBURY CONN HE WAS PREVIOUSLY VICE PRESIDENT AND GENERAL MANAGER OF THE UNIT GE HAS INTERESTS IN ELECTRICAL AND INDUSTRIAL PRODUCTS FINANCIAL SERVICES AND BROADCASTING 9308100071 930810 COMMON TERMS IN THE DERIVATIVES MARKET DERIVATIVE A FINANCIAL CONTRACT WHOSE VALUE IS DESIGNED TO TRACK THE RETURN ON STOCKS BONDS CURRENCIES OR SOME OTHER BENCHMARK GENERALLY DERIVATIVES FALL INTO TWO BROAD CATEGORIES FORWARDTYPE CONTRACTS AND OPTIONTYPE CONTRACTS AND MAY BE LISTED ON EXCHANGES OR TRADED PRIVATELY OTC DERIVATIVES DERIVATIVES THAT ARE TRANSACTED OVERTHECOUNTER OR OFF ORGANIZED EXCHANGES AND USUALLY BY TELEPHONE FORWARD AN OTC CONTRACT THAT OBLIGES A BUYER AND A SELLER TO TRADE AT A SET PRICE ON A FUTURE DATE A FIXED AMOUNT OF A PARTICULAR COMMODITY CURRENCY OR OTHER FINANCIAL INSTRUMENT FORWARDS ARE PRICEFIXING CONTRACTS BECAUSE THEY SADDLE THE BUYER WITH THE SAME RETURNS AS OWNING THE UNDERLYING ASSET NORMALLY NO MONEY CHANGES HANDS UNTIL THE DELIVERY DATE THEN THE CONTRACT IS USUALLY SETTLED IN CASH RATHER THAN THROUGH EXCHANGE OF THE ACTUAL ASSET FUTURE BASICALLY AN EXCHANGETRADED FORWARD CONTRACT FUTURES CONTRACTS ARE HIGHLY STANDARDIZED AND THE EXCHANGE ACTS AS COUNTERPARTY TO BOTH BUYER AND SELLER GUARANTEEING PAYMENT IN CASE ONE OF THEM DEFAULTS IN RETURN BUYER AND SELLER ARE REQUIRED TO PUT UP COLLATERAL OR MARGIN EQUAL TO A CERTAIN PERCENTAGE OF THE CONTRACT'S UNDERLYING VALUE WHICH IS MARKED TO MARKET DAILY SWAP A FORWARDTYPE CONTRACT IN WHICH TWO PARTIES AGREE TO EXCHANGE STREAMS OF PAYMENTS OVER TIME ACCORDING TO A PREDETERMINED RULE IN AN INTERESTRATE SWAP ONE PARTY AGREES TO PAY A FIXED INTEREST RATE IN RETURN FOR RECEIVING A FLOATING INTEREST RATE FROM ANOTHER PARTY AN EQUITYINDEX SWAP MAY INVOLVE SWAPPING THE RETURNS ON TWO DIFFERENT STOCKMARKET INDEXES OR SWAPPING THE RETURN ON A STOCK INDEX FOR A FLOATING INTEREST RATE OPTION A CONTRACT FOR WHICH THE BUYER PAYS A FEE IN EXCHANGE FOR THE RIGHT BUT NOT THE OBLIGATION TO BUY OR SELL A FIXED AMOUNT OF A GIVEN FINANCIAL INSTRUMENT AT A SET PRICE WITHIN A SPECIFIED TIME OPTIONS ARE PRICEINSURANCE CONTRACTS BECAUSE THEY PROTECT BUYERS FROM ADVERSE SWINGS IN THE PRICE OF THE UNDERLYING ASSET THE BUYER CAN NEVER LOSE MORE THAN THE PRICE PAID FOR THE OPTION BUT THE SELLER'S LOSSES ARE POTENTIALLY UNLIMITED CALL AN OPTION THAT CONFERS THE RIGHT TO BUY A GIVEN FINANCIAL INSTRUMENT AT A FIXED PRICE WITHIN A SPECIFIED TIME PUT A TYPE OF OPTION THAT CONFERS THE RIGHT TO SELL A GIVEN FINANCIAL INSTRUMENT AT A FIXED PRICE WITHIN A SPECIFIED TIME CAP A TYPE OF OPTION THAT PROTECTS THE BUYER FROM A RISE IN A PARTICULAR INTEREST RATE ABOVE A CERTAIN LEVEL FLOOR A TYPE OF OPTION THAT PROTECTS THE BUYER FROM A DECLINE IN A PARTICULAR INTEREST RATE BELOW A CERTAIN LEVEL EXOTIC OPTIONS A WIDE VARIETY OF OPTIONS WITH UNUSUAL UNDERLYING ASSETS OR PECULIAR TERMS OR CONDITIONS FOR EXAMPLE LOOKBACK OPTIONS CONFER THE RETROACTIVE RIGHT TO BUY A GIVEN FINANCIAL INSTRUMENT AT ITS MINIMUM PRICE OR SELL IT AT ITS MAXIMUM PRICE DURING A SPECIFIC LOOKBACK PERIOD A COMPOUND OPTION IS AN OPTION SUCH AS A PUT ON A CALL A CALL ON A PUT A PUT ON A PUT OR A CALL ON A CALL SEE RELATED STORY PORTFOLIO SURPRISE MANY AMERICANS RUN HIDDEN FINANCIAL RISK FROM DERIVATIVES' EXOTIC INVESTMENT CONTRACTS INCREASINGLY PERMEATE PENSION MUTUAL FUNDS BIG BETS AND HIGH LEVERAGE WSJ AUG 10 1993 9308100070 930810 WORLD MARKETS LONDON SHARES SET NEW HIGH FOR SECOND SESSION IN A ROW TOKYO STOCKS GAIN ON POLITICAL NEWS A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARES CLIMBED TO A RECORD YESTERDAY FOR THE SECOND SESSION IN A ROW STILL DRIVEN BY HOPES FOR LOWER EUROPEAN INTEREST RATES THOUGH CONTINENTAL BOURSES HAD A MIXED PERFORMANCE OVERALL IN TOKYO STOCK PRICES GAINED MONDAY AS INVESTORS REACTED WITH CAUTIOUS OPTIMISM TO NEW JAPANESE PRIME MINISTER MORIHIRO HOSOKAWA'S CABINET PICKS WHILE THE START OF THE OBON SUMMERVACATION PERIOD SAPPED TURNOVER WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10966 UP 010 REFLECTING HIGHER AMERICAN MARKETS AND LOWER EUROPEAN AND ASIA/PACIFIC MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14101 UP 345 OR 25 WITH NIUGINI MINING OF AUSTRALIA POSTING A 23 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 6015 DOWN 157 OR 25 WITH AMGEN OF THE US SLIDING 82 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 166 POINTS TO 29864 JUST 04 OFF THE INTRADAY HIGH AND TOPPING THE PREVIOUS CLOSING RECORD OF 29698 SET FRIDAY THE FT 30STOCK INDEX CLIMBED 135 POINTS TO 23745 VOLUME WAS 5253 MILLION SHARES DOWN FROM 6813 MILLION SHARES IN THE PREVIOUS SESSION THE STEAM FROM FRIDAY'S RALLY SPILLED OVER INTO YESTERDAY'S ACTIVITY THOUGH DEALINGS WERE RELATIVELY QUIET WITH MARKED GAINS COMING EARLY AND AGAIN LATE IN THE SESSION WITH THE RECENT LOOSENING OF EUROPE'S EXCHANGE RATE MECHANISM INVESTORS SCRAMBLED TO BUY STOCKS IN ANTICIPATION OF LOWER EUROPEAN INTEREST RATES AND THUS HIGHER CORPORATE EARNINGS BUT SOME PARTICIPANTS SAID THAT BECAUSE THE LONDON MARKET HAS HAD SUCH A SWIFT AND SHARP REACTION TO THE ERM TURMOIL SHARES MIGHT NOT GET MUCH OF A LIFT WHEN RATES ARE CUT YET OTHERS SEE LONGER LIFE FOR THE MARKET'S RALLY WHICH BEGAN JULY 22 AND HAS PUSHED THE 100STOCK INDEX UP 61 SINCE FOR THIS YEAR THE GAUGE IS UP 49 INVESTORS ALSO WERE TURNING TO CORPORATE FUNDAMENTALS BUYING ISSUES THAT HAVE LAGGED BEHIND THE MARKET SUCH AS BREWERS FOOD RETAILERS AND STORES EQUITIES ALSO GOT A LIFT YESTERDAY FROM A BRITISH REPORT THAT INFLATION WAS BEING HELD IN CHECK IN FRANKFURT STOCK PRICES ENDED MIXED IN QUIET TRADING THE DAX 30STOCK INDEX ROSE 29 POINTS TO 187230 TRADING FOCUSED ON FINANCIAL ISSUES WHERE STRENGTH CONTINUED LAST WEEK'S TREND ON HOPES FOR REDUCED GERMAN INTEREST RATES WHICH WOULD BOOST THE VALUE OF BANKS' BOND PORTFOLIOS LENDING MARGINS AND LOAN DEMAND THE GERMAN CENTRAL BANK MAY NEXT CONSIDER ALTERING ITS RATES ON AUG 26 IN PARIS AFTER REACHING NEW HIGHS FRIDAY STOCKS FELL ON PROFITTAKING IN THE QUIETEST DEALINGS SINCE THE BROADENING OF CURRENCYTRADING RANGES IN THE EUROPEAN MONETARY SYSTEM THAT SPAWNED RATECUT PLAYS FRANCE'S CENTRAL BANK DIDN'T REDUCE RATES YESTERDAY AT THE SECURITIES REPURCHASE TENDER BUT OFFERED 24HOUR FUNDS AT 975 OR ONEQUARTER POINT BELOW THE PREVIOUS LEVEL AND THIS WAS CONSIDERED A SIGN THAT THE BANK OF FRANCE IS TRYING TO LOOSEN CREDIT WHILE STILL KEEPING SHORTTERM RATES HIGH ENOUGH SO THAT PLAYERS WHO HAVE SPECULATED ON A DECLINE IN THE FRENCH FRANC'S VALUE WILL START TO FEEL PRESSURE TO CLOSE OUT THEIR POSITIONS ELSEWHERE IN EUROPE AMSTERDAM PRICES ROSE AS A SOFT DOLLAR AND EARLY WEAKNESS ON WALL STREET DIDN'T DEPRESS BUYING SENTIMENT BUOYED BY A HIGHER BOND MARKET BUT TRADING WAS SLOW AS PARTICIPANTS HELD BACK AHEAD OF A STRING OF EARNINGS REPORTS THIS WEEK BY MAJOR DUTCH COMPANIES IN MILAN A CONTINUING TELECOMMUNICATIONS RALLY BOOSTED THE MARKET AND STOCKS ENDED HIGHER IN ZURICH SHARE PRICES EASED AS PROFITTAKING IN THE BANKING AND INSURANCE SECTORS PARTLY BALANCED OUT SCATTERED BUYING OF CHEMICAL AND FOOD STOCKS STOCKHOLM SHARES KEPT UP THEIR BLISTERING PACE AGAIN SETTING A NEW HIGH FOR THIS YEAR IN HEAVY TRADING AFTER RECOVERING FROM A WEAK OPENING FOREIGN BUYERS BOOSTED THE BOURSE WHICH WAS HELD BACK BY SOME PROFITTAKING IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 6770 POINTS FRIDAY ROSE 13511 TO 2049305 ON TUESDAY THE NIKKEI ADVANCED 10991 POINTS TO CLOSE THE MORNING SESSION AT 2060296 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 190 MILLION SHARES LITTLE CHANGED FROM 191 MILLION SHARES IN THE PREVIOUS SESSION ADVANCING ISSUES OUTNUMBERED LOSERS 552378 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH DECLINED 723 POINTS FRIDAY ADDED 442 TO 165901 THE NIKKEI MOVED IN A TIGHT RANGE OF 21323 POINTS WHEREAS LAST WEEK'S VOLUME WAS HELD DOWN BY POLITICAL UNCERTAINTY AHEAD OF THE FORMATION OF JAPAN'S NEW GOVERNMENT MONDAY'S TURNOVER WAS SUBDUED AS THE FEW INVESTORS WHO WERE LEFT SOUGHT CLUES ABOUT NEW POLICIES SUMMER VACATIONS AND A NATIONAL HIGHSCHOOL BASKETBALL TOURNAMENT LEFT MARKET PARTICIPATION THIN SHARE PRICES OPENED FLAT AND BEGAN RISING AFTER THE ANNOUNCEMENT OF THE JAPANESE CABINET POSTS THEN EASED ON PROFITTAKING BEFORE ONCE AGAIN MOVING UP THE DAY'S WINNERS WERE CONCENTRATED IN SECTORS SUCH AS FINANCIAL AND HIGH TECHNOLOGY THAT MAY BENEFIT FROM ANY FRESH ECONOMIC STIMULUS BUYING WAS LED BY ARBITRAGERS AND PUBLIC PENSION AND INVESTMENT FUNDS ASIAPACIFIC MARKETS WERE GENERALLY MIXED IN SYDNEY SHARES ENDED SLIGHTLY HIGHER AFTER REBOUNDING FROM LOWS ON A STRENGTHENING IN THE PRICE OF GOLD IN HONG KONG STOCKS DROPPED IN VOLATILE TRADING AS PROFITTAKING KNOCKED THE MARKET DOWN FROM AN EARLY SURGE OF ALMOST 14 ONLY BANKS POSTED GAINS IN TAIPEI SHARES ROSE ON A COMMERCIAL BANK'S CUT IN THE PRIME RATE FINANCIAL ISSUES LED THE MARKET'S GAINS IN MANILA SHARES SLUMPED IN HEAVY VOLUME AS A CORRECTION CONTINUED IN SEOUL EQUITIES DROPPED SHARPLY ON CONTINUED BEARISHNESS BECAUSE OF FURTHER MUTUALFUND SELLING ACTIVITY UNCERTAINTY ABOUT SOUTH KOREA'S ECONOMIC RECOVERY AND THE COMING REGISTRATION OF WEALTH BY ABOUT 20000 HIGHRANKING GOVERNMENT OFFICIALS IN WELLINGTON EQUITIES ROSE TO A THREEYEAR HIGH AS THE CONTINUING RALLY ATTRACTED INDIVIDUAL INVESTORS AMONG CORPORATE DEVELOPMENTS IN LONDON RTZ FELL 3 PENCE TO 674 PENCE 1009 THE MINING CONGLOMERATE AGREED TO SELL A 3599 INTEREST IN ITS LIHIR ISLAND GOLD PROJECT IN PAPUA NEW GUINEA A 16 HOLDING WILL BE SOLD TO RTZ'S PARTNER IN THE PROJECT NIUGINI MINING OF PAPUA NEW GUINEA AND AUSTRALIA FOR 48 MILLION RAISING NIUGINI'S OWNERSHIP TO 30 AN INDIRECT 1999 STAKE WILL BE SOLD TO VENEZUELAN GOLDFIELDS OF CANADA FOR 60 MILLION THE REMAINING 30 IS OWNED BY THE PAPUA NEW GUINEA GOVERNMENT AND RTZ SAID TALKS WERE CONTINUING ON BUYING THAT STAKE MINE CONSTRUCTION IS TO START EARLY NEXT YEAR AND TAKE 28 MONTHS TO COMPLETE IN FRANKFURT VOLKSWAGEN FELL 280 MARKS TO 37120 MARKS 21893 FOLLOWING NEW VOLLEYS IN THE VWGENERAL MOTORS TRADESECRETS DISPUTE OVER THE WEEKEND BUT VW'S FRIDAY PREDICTION OF BREAKEVEN EARNINGS FOR 1993 LENT THE STOCK SOME SUPPORT 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 9308100069 930810 PORTFOLIO SURPRISE MANY AMERICANS RUN HIDDEN FINANCIAL RISK FROM DERIVATIVES' EXOTIC INVESTMENT CONTRACTS INCREASINGLY PERMEATE PENSION MUTUAL FUNDS BIG BETS AND HIGH LEVERAGE BY BARBARA DONNELLY GRANITO AND CRAIG TORRES STAFF REPORTERS OF THE WALL STREET JOURNAL WHEN THE SECURITIES FIRST SHOWED UP IN A BROKERAGEFIRM CONFIRMATION STATEMENT FOR THE ACCOUNT OF AN ELDERLY WIDOW JOHN S LEECH RECALLS THINKING THEY LOOKED ODD I'M ACCUSTOMED TO LOOKING AT CONFIRMATION STATEMENTS AND I DIDN'T UNDERSTAND WHAT IT WAS SAYS MR LEECH A SMITH BARNEY BROKER IN FORT LAUDERDALE FLA WHO WAS SERVING NOT AS THE WIDOW'S BROKER BUT AS TRUSTEE OF HER 500000 PORTFOLIO THE SECURITIES SOME 20 OF THE PORTFOLIO WERE LISTED AS TRIPLEARATED BONDS ISSUED BY A QUASIFEDERALGOVERNMENT AGENCY THERE WEREN'T ANY OBVIOUS RISKS BUT RISKY THEY WERE WHILE MOST BOND PRICES WERE RISING THE VALUE OF THESE SECURITIES PLUMMETED ABOUT 50 IN JUST SEVEN MONTHS WIPING OUT 10 OF THE WIDOW'S PORTFOLIO MR LEECH WHO IS BATTLING WITH LAWYERS TO RECOUP THE LOSS FROM HER INDEPENDENT INVESTMENT ADVISER DIDN'T REALIZE THE SECURITIES WERE A FORM OF DERIVATIVES STRANGE HYBRID INVESTMENTS THAT LOOK LIKE ONE THING AND ACT LIKE ANOTHER ONCE USED SOLELY BY SOPHISTICATED FINANCIAL INSTITUTIONS DERIVATIVES HAVE MUSHROOMED IN THE PAST DECADE AND ARE SURFACING IN THE INVESTMENT MAINSTREAM MANY AMERICANS ARE FAR MORE INVOLVED IN DERIVATIVES THAN THEY REALIZE THEIR PENSION FUNDS MUTUAL FUNDS AND INSURANCE COMPANIES ARE KNEEDEEP IN THE MARKET AND WADING IN FURTHER MOST BUYERS OF FIXEDINCOME MUTUAL FUNDS FOR EXAMPLE ALREADY OWN DERIVATIVES INDIRECTLY WHETHER THEY KNOW IT OR NOT SAYS KENNETH SULLIVAN WHO HEADS THE DERIVATIVEPRODUCTS GROUP AT REPUBLIC NATIONAL BANK OF NEW YORK FIXEDINCOME OR BOND FUNDS IN THE US HAVE SOME 12 MILLION INDIVIDUAL SHAREHOLDERS AND 673 BILLION OF ASSETS WHAT ARE DERIVATIVES EXACTLY THOUGH SOME OF THEM RESEMBLE ORDINARY INVESTMENTS THEY REALLY ARE FINANCIAL ARRANGEMENTS RATHER THAN SECURITIES THEIR VALUES ARE DERIVED FROM CHANGES IN ONE OR MORE UNDERLYING VARIABLES SUCH AS STOCK MARKETS HERE AND ABROAD INTEREST RATES CURRENCIES AND COMMODITY PRICES SOME ARE STANDARDIZED CONTRACTS SUCH AS FUTURES AND OPTIONS ON STOCK INDEXES AND TREASURY SECURITIES LISTED ON EXCHANGES BUT MOST ARE CUSTOMIZED CONTRACTS TRADED PRIVATELY AMONG CONSENTING INVESTORS THE RISKINESS OF DERIVATIVES DEPENDS NOT ONLY ON HOW THEY ARE USED BUT ON WHAT SAFEGUARDS FUNDS HAVE IN PLACE TO LIMIT POTENTIAL GLITCHES IN PRIVATE DEALS THE MAIN RISK IS THAT THE PARTY ON THE OTHER SIDE OF THE TRANSACTION WON'T LIVE UP TO THE BARGAIN AND BECAUSE DERIVATIVES TRANSACTIONS MAY INVOLVE SEVERAL MARKETS PROBLEMS IN ONE CORNER OF THE PLAYING FIELD CAN ROCK OTHER MARKETS AS WELL A CASE IN POINT THE LAST BIG DERIVATIVE FAD ON WALL STREET WAS THE MID1980S BOOM IN PORTFOLIO INSURANCE THAT HEDGING STRATEGY AIMED TO PROFIT FROM MARKET DECLINES THROUGH CRAFTILY TIMED SELLING OF STANDARD & POOR'S INDEX FUTURES IT WORKED LIKE A GRADUATED STOPLOSS ORDER WHENEVER THE MARKET DROPPED BY A CERTAIN AMOUNT FUTURES WOULD BE SOLD AND IF THE MARKET CONTINUED TO FALL MORE FUTURES WOULD BE SOLD SO THAT THE INVESTOR WOULD BE WHOLLY OUT OF THE MARKET IF PRICES FELL TO A PREDETERMINED LEVEL THUS PORTFOLIO INSURANCE EFFECTIVELY CREATED A PUT OPTION THE RIGHT WITHOUT OBLIGATION TO SELL AN ASSET AT A SET PRICE OVER A SPECIFIED PERIOD THAT WAS FINE IN THEORY BUT THE MARKET CRASH OF 1987 SHOWED HOW THINGS CAN GO AWRY WHEN SUCH BETS LURKING IN DERIVATIVES MARKETS SPRING OUT ON AN UNSUSPECTING PUBLIC IN OCTOBER OF THAT YEAR DECLINING STOCK PRICES TRIGGERED THE STRATEGY AND THE EFFECT WAS AKIN TO YELLING FIRE IN A CROWDED THEATER THE SUDDEN SALE OF BILLIONS OF DOLLARS WORTH OF S&P FUTURES SO STARTLED INVESTORS THAT EVERYONE RUSHED TO THE EXIT AT ONCE SELLERS COULDN'T FIND ENOUGH BUYERS AND WHAT FOLLOWED WAS TRADING GRIDLOCK AS PRICES PLUNGED BUT PORTFOLIO INSURANCE AT ITS PEAK INVOLVED NO MORE THAN ABOUT 200 BILLION FAR LESS THAN THE 5 TRILLION MARKET CAPITALIZATION OF ALL US EXCHANGELISTED AND OVERTHECOUNTER STOCKS BY CONTRAST THE FEDERAL RESERVE ESTIMATES THAT THE BANKS IT REGULATES ALONE HOLD SOME 7 TRILLION OF PRIVATELY NEGOTIATED DERIVATIVES EXCHANGELISTED DERIVATIVES ADD UP TO ANOTHER 45 TRILLION OF CONTRACTS WORLDWIDE IN ADDITION ABOUT A THIRD OF THE 12 TRILLION MORTGAGEBACKED SECURITIES MARKET CONSISTS OF MORTGAGE DERIVATIVES ALTHOUGH BANKS AND LARGE INSTITUTIONS ACCOUNT FOR MOST OF THAT ACTIVITY SMALL INVESTORS ARE BECOMING PLAYERS IN DERIVATIVES TOO FOR INSTANCE CITICORP THE BIG NEW YORK BANK IS HEAVILY PROMOTING CERTIFICATES OF DEPOSIT THAT PAY INTEREST ONLY IF THE US STOCK MARKET GOES UP THAT IS A DERIVATIVE A CD WHOSE PERFORMANCE IS DERIVED FROM WHAT STOCKS DO SINCE FIRST OFFERED EARLIER THIS YEAR THESE CDS HAVE DRAWN IN MORE THAN 50 MILLION AT LEAST THESE CD BUYERS PRESUMABLY UNDERSTAND THE RISK IF THE STOCK MARKET DOESN'T GO UP THEY GET NO INTEREST BUT MORE AND MORE INVESTORS ARE UNKNOWINGLY EXPOSED TO DERIVATIVE RISKS THROUGH MUTUAL FUNDS FOR EXAMPLE THE 250000 SHAREHOLDERS IN THE FIDELITY ASSET MANAGER FUND COLLECTIVELY OWN 518 MILLION OF DERIVATIVES OR 85 OF THE FUND'S 61 BILLION OF ASSETS EVEN INVESTORS IN PROSAIC GOVERNMENTBOND FUNDS OWN A GROWING CHUNK OF DERIVATIVES THE STRONG GOVERNMENT SECURITIES FUND AT THE END OF 1992 HAD 8 OF ITS 82 MILLION OF ASSETS IN A SINGLE HOLDING OF CURRENCYLINKED DERIVATIVES BONDS ISSUED BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THAT BET ON THE DIFFERENCE IN EXCHANGE RATES BETWEEN THE SPANISH PESETA AND THE SWISS FRANC ARE THESE DERIVATIVES RISKY THEY CAN BE AS THE FLORIDA WIDOW DISCOVERED THE SECURITIES HER MONEY MANAGER BOUGHT WERE A FORM OF MORTGAGEBOND DERIVATIVES CALLED INTERESTONLY STRIPS THEY ENTITLED HER ONLY TO THE INTEREST PAYMENTS ON THE MORTGAGES UNDERLYING THE BONDS SOMEONE ELSE OWNED BONDS BASED ON THE PRINCIPAL PAYMENTS ON THE MORTGAGES STRIPPING OR SEPARATING THE COMPONENTS OF SECURITIES IS ONE WAY TO CREATE DERIVATIVES WHAT WENT WRONG INTEREST RATES FELL AND THE BORROWERS PAID OFF THEIR MORTGAGES EARLY AND TOOK OUT NEW ONES AT LOWER RATES THAT CAUSED A PLUNGE IN THE PRICES OF THE INTERESTONLY STRIPS WHICH WERE PREDICATED ON THE MORTGAGES' BEING AROUND FOR A WHILE BECAUSE THOSE INTEREST PAYMENTS WERE BEING CUT OFF SOONER THAN EXPECTED AND THE INTEREST PAYMENTS RATHER THAN ANY OF THE PRINCIPAL ARE ALL THE INVESTORS WERE GOING TO GET THE SECURITIES QUICKLY BECAME WORTH LESS AND LESS THEIR TRIPLEA RATING WIDELY CONSIDERED A SIGN OF SAFETY TURNED OUT TO BE MEANINGLESS AT BEST AND MISLEADING AT WORST CREDIT RATINGS GAUGE THE ABILITY TO REPAY DEBT AND THAT SIMPLY WASN'T AN ISSUE IN THIS CASE EVEN PRESUMABLY SOPHISTICATED INVESTORS CAN GET TRAPPED MERRILL LYNCH & CO LOST 250 MILLION IN TRADING RELATED TO PRINCIPALONLY MORTGAGE SECURITIES SEVERAL YEARS AGO IN EARLY 1992 JP MORGAN & CO DROPPED 50 MILLION ON INTERESTONLY MORTGAGE DERIVATIVES IN THE FIRST TWO MONTHS OF 1993 SALOMON INC LOST 250 MILLION UNDERSTOOD TO BE MAINLY IN MORTGAGE DERIVATIVES ALSO THIS YEAR SHOWA SHELL SEKIYU KK A JAPANESE OIL COMPANY ADMITTED TO LOSING SOME 159 BILLION FROM TRADING CURRENCY DERIVATIVES AND LAST MONTH NIPPON STEEL CHEMICAL CO A UNIT OF NIPPON STEEL CORP REPORTED LOSING 1354 MILLION IN CURRENCY DERIVATIVES SO ARE DERIVATIVES BAD FOR INVESTORS IN MANY RESPECTS THEY CAN BE GOOD FOR INVESTORS DERIVATIVES GIVE MONEY MANAGERS ENORMOUS FLEXIBILITY IN MIXING AND MATCHING FEATURES OF STOCKS BONDS CURRENCIES COMMODITIES AND OTHER ASSETS DERIVATIVES ALSO CAN REDUCE THE COST OF ADMINISTERING A PORTFOLIO AND ENABLE MANAGERS TO BUY AND SELL BIG POSITIONS WITHOUT DISTORTING PRICES AND THEY ENABLE MANAGERS TO REV UP OR SCALE BACK THEIR PORTFOLIOS' RISK EXPOSURE IN UNPRECEDENTED WAYS SOME USE THIS CAPABILITY CONSERVATIVELY OTHERS AGGRESSIVELY INVESTMENT FUNDS' DERIVATIVES STRATEGIES RANGE FROM PLAINJANE HEDGING TO BAREFACED SPECULATION I DON'T THINK THE RISK SHOULD BE ATTRIBUTED TO DERIVATIVES THEMSELVES THEY'RE JUST THE WAY TO ACCOMPLISH IT SAYS THOMAS LUCEY CHIEF OF INSTITUTIONAL MANAGEMENT AT PUTNAM INVESTMENTS IF YOU GIVE A 16YEAROLD A HIGHPOWERED PORSCHE AND HE GETS IN AN ACCIDENT DO YOU BLAME THE PORSCHE HOWEVER TOO MANY PORSCHES MAY BE ROARING DOWN THE INVESTMENT HIGHWAY AT ONCE MANY DERIVATIVES ALLOW DEALERS AND INVESTORS TO MAKE HUGE MARKET BETS WITHOUT PAYING FULL PRICE INDEED NO MONEY AT ALL CHANGES HANDS IN SOME DERIVATIVES TRADES THAT IS ONE WAY DERIVATIVES REDUCE INVESTORS' COSTS BUT IT ALSO MEANS THEY CREATE A LOT OF LEVERAGE IN THE SYSTEM SAYS FRANK RABINOVITCH MANAGING DIRECTOR AT PACIFIC INVESTMENT MANAGEMENT CO WHICH RUNS 46 BILLION OF PENSION AND MUTUAL FUNDS IT'S WHY WE'RE EXTRA CAREFUL ABOUT WHOM THE FIRM TRADES DERIVATIVES WITH IN PRIVATE TRANSACTIONS NO WONDER CONSIDERING THE FIRM'S EXPOSURE FUTURES OPTIONS AND OTHER DERIVATIVE POSITIONS AMOUNT TO 35 TO 45 OF ITS FLAGSHIP 34 BILLION TOTAL RETURN MUTUAL FUND AND THAT IS NOT COUNTING THE 20 IN MORTGAGESECURITY DERIVATIVES THAT'S ABOUT CONSISTENT WITH OUR PENSION ACCOUNTS MR RABINOVITCH SAYS INVESTORS CAN USE DERIVATIVES BOTH TO SHUCK RISKS THEY DON'T WANT AND TO BET MORE BOLDLY ON RISKS THEY DO WANT FOR INSTANCE OPPORTUNITIES FOR TRADITIONAL STOCK PICKERS SUCH AS JAMES CRAIG MANAGER OF THE 8 BILLION JANUS FUND ARE NO LONGER RESTRICTED BY NATIONAL BOUNDARIES NOW THAT THEY CAN HEDGE CURRENCY RISKS LIKE MOST OTHER BIG MUTUAL FUNDS JANUS HAS CHANGED ITS PROSPECTUS TO ALLOW USE OF CURRENCY CONTRACTS AND OTHER DERIVATIVES SO LAST FALL MR CRAIG WAS ABLE TO PROTECT HIS LARGEST INVESTMENT 90000 SHARES OF SWISS DRUG MAKER ROCHE HOLDING AG FROM A DROP IN THE SWISS FRANC IT WAS A SHREWD MOVE FROM OCTOBER TO FEBRUARY THE SWISS FRANC FELL 182 THE HEDGE SAVED JANUS FUND ABOUT 26 MILLION OF COURSE IF THE SWISS FRANC HAD RISEN INSTEAD THE HEDGE WOULD HAVE CUT THE FUND'S RETURN ON THE ROCHE INVESTMENT BUT THAT IS NOT THE POINT THE CURRENCY DECISION ISN'T WHAT I'M HERE TO DO FOR A LIVING I'M HERE TO PICK STOCKS HE SAYS INCREASINGLY US PENSION FUNDS ARE INCLINED TO AGREE THEY WANT THEIR STOCKPICKERS TO PICK STOCKS AND TO CEDE MANAGEMENT OF CURRENCY AND OTHER MARKET RISKS TO OTHER PROS THE FUNDS USE DERIVATIVES TO PRY THOSE FUNCTIONS APART PENSION FUNDS AT SUCH ORGANIZATIONS AS SHELL OIL CO DAYTON HUDSON CORP GENERAL MOTORS CORP LOS ANGELES COUNTY INTERNATIONAL BUSINESS MACHINES CORP AND MONSANTO CO USE DERIVATIVES REPRESENTING 70 BILLION OF UNDERLYING SECURITIES TO ENGAGE IN A MARKETTIMING STRATEGY CALLED TACTICAL ASSET ALLOCATION BUT ALTHOUGH BIG PENSION FUNDS TEND TO BE PRUDENT THEY WORRY ABOUT POTENTIAL ABUSE OF DERIVATIVES MY CONCERN IS THAT SOMEONE WILL GET SLOPPY ABOUT THE RISKS AND GET BURNED AND GO SCREAMING TO CONGRESS JUST BECAUSE THEY WEREN'T LOOKING AFTER THEIR FIDUCIARY RESPONSIBILITY AND DIDN'T UNDERSTAND WHAT THEY WERE GETTING INTO SAYS JOHN M MCLAREN SENIOR INVESTMENT OFFICER AT THE 15 BILLION VIRGINIA SUPPLEMENTAL RETIREMENT SYSTEM ALREADY MANY MUTUAL FUNDS ARE EXPERIMENTING ON THE FLY AND SOMETIMES AT INVESTORS' EXPENSE WITH DERIVATIVES TO BOOST YIELDS CRITICS ESPECIALLY CITE THE GROWING RELIANCE ON STRUCTURED NOTES HYBRID SECURITIES THAT LOOK LIKE BONDS BUT ARE DESIGNED TO TRACK ANYTHING FROM CURRENCY MOVES TO SILVER PRICES MANY FUNDS USE THESE AND OTHER DERIVATIVES TO SIDESTEP RESTRICTIONS ON THEIR INVESTMENTS FIDELITY INVESTMENTS' ASSET MANAGER FUND ONE OF THE HOTTESTSELLING MUTUAL FUNDS IS AN ACTIVE PLAYER IN STRUCTURED NOTES IT HAS USED THEM TO MAKE EXOTIC BETS ON SUCH THINGS AS THE VOLATILITY OF SILVER PRICES THE RATE CHARGED FOR BUYING GOLD BULLION ON MARGIN THE GAP BETWEEN SHORTTERM AND LONGTERM OIL PRICES AND FOREIGN INTEREST RATES IN ONE STRUCTURED NOTE ASSET MANAGER IS BETTING ON HIGHER US TAXES AND INTEREST RATES WITH A NOTE BASED ON THE SPREAD BETWEEN THE INTEREST RATES ON SHORTTERM TAXABLE AND TAXEXEMPT INVESTMENTS IT IS BASICALLY A BET THAT THIS SPREAD WILL WIDEN THAT COULD HAPPEN EITHER IF TAXEXEMPT YIELDS DROP OR IF TAXABLE YIELDS RISE AN INCREASE IN TAX RATES IS ONE THING THAT MIGHT CAUSE THAT BY SPURRING DEMAND FOR TAXFREE INVESTMENTS AND THUS RAISING PRICES OF TAXEXEMPT BONDS AND DEPRESSING THEIR YIELDS RELATIVE TO THOSE OF TAXABLE ISSUES ANOTHER WAY THE SPREAD MIGHT WIDEN IS IF INTEREST RATES ROSE BECAUSE TAXABLE INVESTMENTS TEND TO RESPOND TO INTERESTRATE CHANGES MORE QUICKLY THAN TAXEXEMPT INVESTMENTS HIGHER RATES WOULD CAUSE TAXABLE YIELDS TO RISE RELATIVE TO TAXFREE YIELDS UNTIL THE LATTER CAUGHT UP IF THE TAXABLE/TAXEXEMPT SPREAD DOES WIDEN ASSET MANAGER'S NOTES MULTIPLY THE PAYOFF BY A FACTOR OF 40 IF THE SPREAD NARROWS THE NOTES WILL DROP IN VALUE JUST AS FAST BUT A FLOOR FIXES THE MAXIMUM LOSS AT 60 FIDELITY'S THOMAS STEFFANCI DIRECTOR OF FIXEDINCOME INVESTMENTS SAYS THE LEVERAGE GIVES THE NOTE NO MORE RISK THAN THAT OF 20YEAR BONDS ALTHOUGH EXOTIC BETS MAY NOT BE OUT OF LINE FOR ASSET MANAGER GIVEN ITS GUNSLINGING STYLE STRUCTURED NOTES LET IT TAKE POSITIONS ITS PROSPECTUS OTHERWISE WOULDN'T ALLOW SEC RULES EFFECTIVELY BAR MUTUAL FUNDS FROM SHORTSELLING MR STEFFANCI EXPLAINS THAT IS A FUND CAN'T SELL BORROWED SECURITIES IN THE HOPE THAT A PRICE DROP WILL ENABLE IT TO BUY THEM BACK LATER AT A LOWER PRICE FIDELITY SOLVES THAT PROBLEM WITH STRUCTUREDNOTE DERIVATIVES THAT AMOUNT TO TAILORMADE SHORT POSITIONS USUALLY ALONG WITH ANOTHER BET THE NOTES PROVIDE A MORE CUSTOMIZED WAY TO EXPRESS INVESTMENT VIEWS THAN SIMPLY BUYING SECURITIES OR SELLING SHORT HE SAYS FIDELITY LIMITS ASSET MANAGER'S EXPOSURE TO STRUCTURED NOTES TO 5 OF ASSETS BUT SOME FUNDS USE THEM LIBERALLY THE 225 BILLION MERRILL LYNCH WORLD INCOME FUND SAILED INTO LAST YEAR'S EUROPEAN CURRENCY TURMOIL HEAVILY FREIGHTED WITH NOTES THAT HAD EMBEDDED FOREIGNCURRENCY SWAPS ALMOST 19 OF THE FUND'S ASSETS WERE IN STRUCTURED NOTES AND DERIVATIVELINKED CDS FROM ISSUERS SUCH AS BANKERS TRUST CO GENERAL ELECTRIC CREDIT CORP GOLDMAN SACHS HARVARD UNIVERSITY AND FANNIE MAE THOSE SEEMINGLY INNOCUOUS HOLDINGS WERE DOUBLEBARRELED BETS MANY OF THEM LEVERAGED IN FAVOR OF THE SPANISH PESETA ITALIAN LIRA AND OTHER CURRENCIES IN COUNTRIES WITH HIGH INTEREST RATES AND AGAINST LOWYIELDING CURRENCIES SUCH AS THE YEN THOSE BETS BACKFIRED WITH THE DEVALUATIONS ACCOMPANYING THE TURMOIL IN EUROPE'S EXCHANGE RATE MECHANISM LAST YEAR PRICES OF MANY SUCH NOTES FELL AS MUCH AS 60 MERRILL SAYS IT JETTISONED MOST OF THE NOTES BUT EVIDENTLY NOT BEFORE WORLD INCOME TOOK A HIT THE FUND'S TRACK RECORD FELL FROM WELL ABOVE AVERAGE TO LAG BEHIND 90 OF RIVAL WORLD BOND FUNDS IN THE THREE MONTHS ENDED IN SEPTEMBER 1992 ACCORDING TO MUTUALFUND TRACKER MORNINGSTAR INC MERRILL SAYS THE FUND WAS INSIGNIFICANTLY AFFECTED BY THIS SUMMER'S CURRENCY UPHEAVAL BECAUSE MOST OF ITS PORTFOLIO IS NOW TIED TO THE DOLLAR GLOBAL BOND FUNDS WHICH GENERALLY AREN'T FOR THE FAINTHEARTED WEREN'T THE ONLY ONES TO SPECULATE IN NOTES LINKED TO CURRENCIES LOTS OF FUNDS MANY WITH NO RISKY FOREIGN MANDATE AT ALL FOUND THE NOTES' HIGH YIELDS IRRESISTIBLE AMONG THEM WERE SHEARSON'S MANAGED GOVERNMENTS FUND DIVERSIFIED STRATEGIC INCOME FUND AND GOVERNMENT SECURITIES FUND KEYSTONE B1 HIGH GRADE BOND FUND AND B2 DIVERSIFIED BOND FUND STEIN ROE GOVERNMENT INCOME FUND AND INTERMEDIATE BOND FUND AND STRONG INCOME FUND MORE AND MORE YOU WILL SEE A RISK PROFILE THAT HAS NOTHING TO DO WITH A ONE OR TWOYEAR SECURITY POPPING UP IN SAFESOUNDING BOND FUNDS SAYS THERESA HAVELL GENERAL PARTNER AT MONEY MANAGER NEUBERGER & BERMAN DERIVATIVES SUCH AS STRUCTURED NOTES ARE INTRODUCING LEVERAGE AND SPECULATION INTO MUTUAL FUNDS SOMETIMES FUNDS USE OTHER DERIVATIVES SUCH AS FLOORS TO GET AROUND REGULATORY PROBLEMS FOR INSTANCE ADJUSTABLERATEMORTGAGE FUNDS WHICH HAVE BEEN HURT BY FALLING SHORTTERM RATES CAN'T GET THE HIGHER YIELDS ON FIXEDRATE BONDS WITHOUT VIOLATING FEDERAL SECURITIES RULES REQUIRING THEM TO MEET THEIR STATED INVESTMENT OBJECTIVE OF HOLDING AT LEAST A CERTAIN PERCENTAGE OF THEIR ASSETS IN ARMS BY PURCHASING THROUGH WALL STREET DEALERS AN OPTIONLIKE DERIVATIVE CALLED A FLOOR ARM FUNDS CAN PROTECT THEIR RETURNS FROM DECLINING YIELDS FLOORS ENSURE THAT AN INVESTOR'S INTEREST INCOME WON'T FALL BELOW A GIVEN FIXEDRATE FLOOR COMBINED WITH ADJUSTABLERATE BONDS FLOORS CAN PROVIDE THE SAME RETURN AS FIXEDRATE BONDS IF WE HAD JUST SOLD ARMS AND BOUGHT FIXEDRATE SECURITIES THAT WOULD KNOCK US OUT OF COMPLIANCE SAYS BENJAMIN RINKEY A PIPER CAPITAL EXECUTIVE ALL THIS ACTIVITY MAY LEAVE INVESTORS WITHOUT A CLUE ABOUT WHAT RISKS THEIR FUNDS ARE TAKING DERIVATIVES LISTED IN FUNDS' ANNUAL REPORTS EXPLAIN LITTLE ABOUT POTENTIAL HAZARDS IF THEY ARE LISTED AT ALL MEANWHILE MOST BIG FUNDS' PROSPECTUSES HAVE BEEN AMENDED TO ALLOW BROAD UNSPECIFIED USE OF SUCH INSTRUMENTS REGULATORY GUIDELINES WHICH PREDATE THE DERIVATIVES BOOM SET A LOW STANDARD FOR INSTANCE SWAPS ARE OFFBALANCESHEET THEY'RE NOT DISCLOSED AT ALL SAYS GENE GOHLKE WHO HEADS THE SECURITIES AND EXCHANGE COMMISSION'S INSPECTION OF MUTUAL FUNDS AND INVESTMENT ADVISERS HE ADDS NOTHING IN OUR RULES SPELLS OUT WHAT NEEDS TO BE DISCLOSED BY WAY OF DESCRIPTION OF SECURITIES WITH DERIVATIVES EMBEDDED IN THEM IT'S UP TO THE FUNDS WHAT CAN SMALL INVESTORS DO THEY CAN TRY TO LOOK BEYOND A MUTUAL FUND'S HISTORICAL RETURNS AND INVESTIGATE THE RISKS IT HAS TAKEN TO ACHIEVE THOSE RETURNS INVESTORS COULD DO SO MORE EASILY IF THE FUNDS DISCLOSED EXPLICITLY THE RISKS OF THE DERIVATIVES IN THEIR PORTFOLIOS MEASURED NOT JUST IN TERMS OF CREDIT RISK BUT ALSO IN TERMS OF HOW VOLATILE THESE INSTRUMENTS CAN BE RATING AGENCIES SUCH AS STANDARD & POOR'S AND FITCH INVESTORS SERVICE ARE TRYING TO DEVELOP JUST SUCH A WAY OF ASSESSING FUNDS' RISKINESS J CARTER BEESE AN SEC COMMISSIONER EXPECTS INVESTORS TO SHOW GREATER CONCERN WITH RISKADJUSTED RETURN AS TIME GOES ON BUT HE DOESN'T EXPECT ACTION VERY SOON HE NOTES THAT A BIG MARKET DISRUPTION HAS TRADITIONALLY BEEN ONE OF THE WAYS PEOPLE FOCUS ON THESE ISSUES 9308100068 930810 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE TRUTHINRETIREMENT BECOMES A HEATED LEGAL ISSUE A 1988 CASE INVOLVING MICHIGAN BELL ESTABLISHED THAT ERISA THE BASIC PENSION LAW REQUIRES COMPANIES TO DISCLOSE WHEN RETIREMENT PLAN IMPROVEMENTS ARE UNDER SERIOUS CONSIDERATION BUT THAT TERM REMAINS VAGUE A FEDERAL APPEALS COURT IN MAY RULED THAT GENERAL MOTORS MISLED EMPLOYEES WHEN IT ASSURED THEM BEFORE THEY RETIRED THAT PLAN ENHANCEMENTS WEREN'T BEING CONTEMPLATED NOW MASSACHUSETTS MUTUAL LIFE IS HIT BY A SIMILAR RETIREE LAWSUIT BELL ATLANTIC RETIREES APPEAL A VIRGINIA RULING THAT THEY CAN'T SUE OVER RETIREMENTPLAN CHANGES MADE AFTER THEY LEFT BUT AN APPEALS COURT ORDERS A TRIAL IN A SIMILAR LAWSUIT BY PHILADELPHIA ELECTRIC RETIREES THE UTILITY ARGUES IT COULDN'T DEFINITIVELY ANNOUNCE CHANGES IN ADVANCE OF A RATE RULING FIRESTONE MOBIL AND GULF OIL SUCCESSFULLY FIGHT OFF RETIREES' CLAIMS COMPANIES MAY GROW RELUCTANT TO SWEETEN RETIREMENT OFFERS AND RESORT TO MORE LAYOFFS FRETS BELL ATLANTIC ATTORNEY BRUCE HALLER DOCKING PAY FOR SALARIED WORKERS GAINS LEGISLATIVE DEFENDERS SEN NANCY KASSEBAUM R KANSAS INTRODUCES A BILL TO ALLOW EMPLOYERS TO REDUCE PAY OF SALARIED WORKERS WHO TAKE PARTIALDAY LEAVES THE LABOR DEPARTMENT SAYS EMPLOYEES WHO CAN BE DOCKED FOR MISSED HOURS REALLY AREN'T SALARIED AND THUS MUST BE PAID OVERTIME WHEN THEY PUT IN MORE THAN A BASIC WORK WEEK SOME EMPLOYERS SAY THEY COULD FACE ENORMOUS LIABILITY FOR BACK PAY UNDER THAT RULE THE EMPLOYERS COMPLAIN THAT THE RULE HURTS MODERNDAY WORKERS ESPECIALLY PARENTS WHO HAVE MANY OFFDUTY INTERESTS AND RESPONSIBILITIES BUT AFLCIO ECONOMIST JOHN ZALUSKY ARGUES THAT EMPLOYERS WANT IT BOTH WAYS DENYING WORKERS OVERTIME WHILE CUTTING PAY WHEN THEY WORK LESS THAN FULL TIME THE ISSUE MAY NOT COME TO A HEAD UNTIL BARGAINING BEGINS OVER INCREASING THE MINIMUM WAGE MANAGING PEOPLE TO GAIN PRODUCTIVITY IT TAKES A TOTAL COMMITMENT IN A STUDY TOUTED BY THE CLINTON ADMINISTRATION ECONOMISTS FOUND THAT STEEL COMPANIES ADOPTING PIECEMEAL LABOR REFORMS SUCH AS LABORMANAGEMENT TEAMS AND SKILLBASED PAY REALIZED ONLY SMALL GAINS IN OUTPUT AT BEST THEY REDUCED UNSCHEDULED DOWNTIME BY ONLY TWO OR THREE PERCENTAGE POINTS BUT ONES MAKING COMPREHENSIVE CHANGES CUT DOWNTIME BY AS MUCH AS 10 PERCENTAGE POINTS WITHOUT HURTING QUALITY REFORMS DON'T WORK WELL IN ISOLATION EXPLAIN CASEY ICHNIOWSKI OF COLUMBIA UNIVERSITY AND KATHRYN SHAW OF CARNEGIE MELLON UNIVERSITY FOR INSTANCE PAY PLANS DESIGNED TO ENCOURAGE INNOVATION WORK BEST IF WORKERS KNOW THE EFFICIENCY GAINS WON'T ELIMINATE THEIR JOBS BUT GUARANTEEING JOB SECURITY DOESN'T WORK UNLESS WORKERS HAVE ENOUGH TRAINING TO SWITCH TO NEW JOBS WHEN OLD ONES BECOME OBSOLETE YOU GET A SMALL KICK FROM DOING A FEW THINGS BUT YOU HAVE TO DO AN AWFUL LOT RIGHT IF YOU WANT TO MAKE A QUANTUM LEAP SAYS PROF ICHNIOWSKI WORKPLACE INJURIES REPORTED WITHIN 10 DAYS OF THEIR OCCURRENCE COST AN AVERAGE 10172 WHILE ONES REPORTED AFTER 30 DAYS AVERAGED 15745 KEMPER NATIONAL INSURANCE COS FINDS EARLY REPORTING LEADS TO QUICKER TREATMENT WHILE DELAY LETS PROBLEMS FESTER AND INCREASES THE CHANCES OF LITIGATION SAYS KEMPER PRISON LABOR STIRS CONTROVERSY A GROUP OF COMPANIES AND UNIONS MAINLY IN THE FURNITURE ELECTRONICS TEXTILE AND APPAREL INDUSTRIES COMPLAIN THAT THE GOVERNMENT'S 400 MILLION IN ANNUAL PURCHASES FROM FEDERAL PRISON INDUSTRIES CUT INTO THEIR BUSINESS THEY PRESS PRISON INDUSTRIES TO CONVERT TO ACTIVITIES LIKE RECYCLING WHERE THERE IS NO PRIVATE COMPETITION WOMEN ADVANCE IN ORGANIZED LABOR THE AFLCIO EXECUTIVE COUNCIL ELECTS TWO WOMEN MEMBERS BOOSTING FEMALE REPRESENTATION TO A RECORD THREE OUT OF 35 MEMBERS NOT TO BE OUTDONE THE INDUSTRIAL UNION DEPARTMENT INCREASES ITS EXECUTIVE COUNCIL TO 30 MEMBERS FROM 25 ADDING FIVE WOMEN TAKING VACATIONS CAN BE A TRICKY PROPOSITION FOR SMALLBUSINESS WORKERS FOR SMALL STAFFS VACATION PLANNING IS A JUGGLING ACT WITH NO HARD RULES JONATHAN KING A BLUE BELL PA VETERINARIAN ALLOWS SUMMER VACATIONS ONLY SELECTIVELY HE SAYS EMPLOYEES UNDERSTAND THAT PETS HAVE MORE MEDICAL PROBLEMS IN THE SUMMER CALIFORNIA TAX SERVICE OF FREEMONT CALIF PROHIBITS ITS SIXPERSON STAFF FROM TAKING OFF DURING ITS BUSIEST TIME FROM JANUARY THROUGH APRIL OTHERS SAY THEY NEED LONG LEAD TIMES TO SCHEDULE OVERTIME OR HIRE TEMPORARIES TO FILL IN FOR ABSENT STAFFERS ATLANTA INTERNATIONAL RMI AN INSURANCE BROKERAGE FIRM ASKS EMPLOYEES TO GIVE AS MUCH AS 90 DAYS ADVANCE NOTICE OF VACATION PLANS JONG'S PRODUCE GROCERY AND DELI OF NEW HAVEN CONN SHUTS DOWN ONE WEEK IN AUGUST SO EVERYONE TAKES THE SAME TIME OFF I CALL A STAFF MEETING AND ASK MYSELF WHAT'S ON THE AGENDA SAYS WILLIAM SMITH A SELFEMPLOYED PUBLICRELATIONS COUNSEL IF THERE'S NOTHING COMING UP I STILL DON'T TAKE VACATION JUST IN CASE SOMETHING DOES COME UP THE CHECKOFF AMERICAN TELEPHONE & TELEGRAPH CO NAMES BERNARD E DELURY DIRECTOR OF THE FEDERAL MEDIATION AND CONCILIATION SERVICE TO BE A VICE PRESIDENT IN ITS LABORRELATIONS DEPARTMENT ATLANTA CONTRACTORS GUARANTEE CONSTRUCTION WORKERS A MINIMUM 750 AN HOUR TO BUILD THE NEW 210 MILLION OLYMPIC STADIUM 9308100067 930810 TALKS ON NAFTA SIDE DEALS BREAK OFF AT HIGHEST LEVEL WASHINGTON TRADE MINISTERS FROM THE US CANADA AND MEXICO BROKE OFF THEIR NEGOTIATIONS OVER SIDE DEALS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT BUT TALKS AIMED AT RESOLVING THE THORNY ISSUES DIVIDING THEM WILL CONTINUE AT A LOWER LEVEL OFFICIALS WILL CONTINUE TO WORK THIS WEEK TO ADDRESS THE HANDFUL OF REMAINING ISSUES ACCORDING TO A JOINT STATEMENT FROM US TRADE REPRESENTATIVE MICKEY KANTOR CANADA'S TRADE MINISTER THOMAS HOCKIN AND MEXICO'S TRADE MINISTER JAIME SERRA PUCHE A US OFFICIAL SAID WORKING LEVEL TALKS WILL CONTINUE BUT IT ISN'T CERTAIN WHEN THE TRADE MINISTERS WILL MEET AGAIN THE TALKS HAVE DRAGGED ON LONGER THAN PLANNED LARGELY BECAUSE OF DIFFERENCES OVER HOW TO ENFORCE LABOR AND ENVIRONMENTAL STANDARDS THERE'S GROWING PRESSURE ON THE CLINTON ADMINISTRATION ALREADY STUNG BY THE BRUISING BUDGET BATTLE TO PUT TOGETHER A PACKAGE THAT WILL WIN THE APPROVAL OF LAWMAKERS SKEPTICAL ABOUT JUST HOW GOOD THE PACT WILL BE FOR THE US ECONOMY AND WORKERS THE AGREEMENT WOULD ELIMINATE TRADE BARRIERS BETWEEN THE THREE COUNTRIES DURING THE NEXT 15 YEARS 9308100066 930810 US EFFORTS TO DISENGAGE FROM SOMALIA MAY BE FRUSTRATED BY FACTION LEADER BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE WAKE OF THE KILLING OF FOUR US SOLDIERS IN SOMALIA LAST WEEKEND THE CLINTON ADMINISTRATION IS ACCELERATING A STUDY OF HOW TO EXIT THE FACTIONRIDDEN AFRICAN COUNTRY BUT THE ADMINISTRATION'S PRELIMINARY CONCLUSION IS THAT THE US CAN'T WITHDRAW ITS REMAINING 4000 TROOPS AS LONG AS THE FACTION LED BY MOHAMED FARRAH AIDID CAN DISRUPT LIFE IN THE SOMALI CAPITAL MOGADISHU THUS THE ADMINISTRATION APPEARS HEADED IN THE SHORT TERM NOT TOWARD DISENGAGEMENT BUT RATHER INTO TAKING A TOUGHER STANCE AGAINST MR AIDID THAT CONFRONTATIONAL INCLINATION CAN ONLY BE REINFORCED BY SUNDAY'S ATTACK WHICH UNITED NATIONS AND US OFFICIALS BLAME ON MR AIDID'S SUBCLAN UNDERSCORING THE PURPOSEFUL NATURE OF THAT ATTACK PENTAGON OFFICIALS SAID YESTERDAY THAT THE EXPLOSION WASN'T CAUSED BY A PASSIVE LAND MINE BUT RATHER WAS AN EXPLOSIVE DETONATED ON COMMAND AFTER THE BLAST OTHER US TROOPS IN THE NEIGHBORHOOD WERE PINNED DOWN BY HEAVY GUNFIRE IT WAS THE DEADLIEST INCIDENT INVOLVING AMERICAN TROOPS SINCE THEY ARRIVED IN SOMALIA LAST DECEMBER THE UN BLAMED MR AIDID'S FORCES FOR AN AMBUSH IN MOGADISHU IN JUNE THAT KILLED OR WOUNDED 73 PAKISTANI SOLDIERS WHO WERE PART OF THE MULTINATIONAL PEACEKEEPING FORCE FOLLOWING THAT ATTACK THE UN CALLED IN US SPECIAL OPERATIONS AC130 SPECTRE GUNSHIPS TO CARRY OUT A SERIES OF SPECTACULAR NIGHT RAIDS AGAINST RADIO FACILITIES AND WAREHOUSES CONTROLLED BY MR AIDID ASKED WHETHER US AND UN FORCES WOULD RESPOND AGGRESSIVELY TO THE SUNDAY ATTACK A SENIOR ADMINISTRATION OFFICIAL SAID I THINK IT'S TOO SOON TO SAY BUT THE CLINTON ADMINISTRATION'S POLICY REVIEW WHICH WAS ACCELERATED YESTERDAY ON ORDERS FROM THE WHITE HOUSE POINTS TOWARD TAKING A FAR MORE AGGRESSIVE STANCE AGAINST MR AIDID'S FORCES AS THE WAY TO CREATE THE CONDITIONS UNDER WHICH THE US COULD LEAVE THE COUNTRY US MARINES LANDED IN SOMALIA LATE LAST YEAR TO STABILIZE CONDITIONS SO THAT FOOD AID COULD BE DELIVERED TO STARVING SOMALIS US TROOP LEVELS PEAKED IN JANUARY AT 26000 AND COMMAND OF THE OPERATION WAS TURNED OVER TO UN PEACEKEEPERS ON MAY 4 SINCE THEN THE LEVEL OF VIOLENCE IN MOGADISHU HAS INCREASED IN JUNE THE 24TH MARINE EXPEDITIONARY UNIT WAS DIVERTED FROM THE PERSIAN GULF TO THE SOMALI COAST TODAY THE OFFICIAL NOTED THE FAMINE CREATED BY FACTIONAL FIGHTING HAS ENDED AND EMERGENCY FOOD SHIPMENTS TO THE COUNTRY ARE SCHEDULED TO END THIS MONTH IF OUR EXIT CONDITIONS WERE ONLY THAT PEOPLE ARE BEING FED WE WOULD GO THIS MONTH THE OFFICIAL SAID BUT IF THE US WITHDREW NOW HE PREDICTED IN SIX TO NINE MONTHS IT'LL BE BACK WHERE IT WAS BECAUSE THE PROBLEM OF STARVATION WAS A POLITICAL PROBLEM THUS HE SAID THE US CAN'T LEAVE AS LONG AS AIDID'S FACTION IS STILL ON THE LOOSE AND STILL HAS GOT SOME POWER 9308100065 930810 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK TONY O'BRIEN 47 YEARS OLD FORMERLY VICE PRESIDENT/CONTROLLER OF ATLANTIC RECORDS WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THE ATLANTIC GROUP PART OF THE MUSIC GROUP OF THE PUBLISHING AND BROADCASTING CONCERN THE DUTIES OF CHIEF FINANCIAL OFFICER HAD BEEN HANDLED BY MEL LEWINTER WHO CONTINUES AS VICE CHAIRMAN OF ATLANTIC GROUP 9308100064 930810 WHO'S NEWS SYNCOR INTERNATIONAL CORP SYNCOR INTERNATIONAL CORP CHATSWORTH CALIF ROBERT G FUNARI WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER MR FUNARI 45 YEARS OLD SUCCEEDS RAYMOND C DAWSON JR 56 WHO TOLD EMPLOYEES IN MARCH THAT HE PLANNED TO RETIRE A COMPANY SPOKESWOMAN SAID AN EXECUTIVE SEARCH TO RECRUIT A SUCCESSOR WAS LAUNCHED AT THAT TIME MR DAWSON WILL REMAIN WITH SYNCOR UNTIL SOMETIME IN JANUARY AS EXECUTIVE VICE PRESIDENT OF STRATEGIC DEVELOPMENT A NEW POST THE SPOKESWOMAN SAID MR DAWSON DIDN'T RETURN A PHONE CALL FOR COMMENT MR FUNARI HAS BEEN EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF MCKESSON DRUG CO A SUBSIDIARY OF SAN FRANCISCOBASED MCKESSON CORP SYNCOR OPERATES PHARMACY SERVICE CENTERS 9308100063 930810 ITC REFUSES TO RECONSIDER RULINGS ON STEEL TARIFFS WASHINGTON THE US INTERNATIONAL TRADE COMMISSION REFUSED TO RECONSIDER RECENT RULINGS THAT ELIMINATED STEEP TARIFFS ON MANY CATEGORIES OF IMPORTED STEEL THE ACTION THWARTED A LASTDITCH EFFORT BY STEEL COMPANIES TO HAVE THE DECISIONS REVERSED EARLIER THE ITC A QUASIJUDICIAL GOVERNMENT BODY THREW OUT MOST OF 72 CASES IN WHICH US STEELMAKERS CLAIMED THAT STEELMAKERS FROM 20 COUNTRIES RECEIVE UNFAIR SUBSIDIES AND SELL STEEL AT UNFAIRLY LOW PRICES IN THE US THE COMMERCE DEPARTMENT HAD DECIDED TO IMPOSE STIFF TARIFFS IN MOST OF THE CASES BUT THE TARIFFS COULDN'T BECOME PERMANENT UNLESS THE ITC RULED THAT THE IMPORTS HURT US STEEL COMPANIES US STEELMAKERS SUGGESTED THAT A DEEP PLUNGE IN THEIR STOCK PRICES FOLLOWING THE ITC RULINGS SUPPORTED THEIR CLAIM THAT THE STEEL IMPORTS ARE INJURING THEM THE UNUSUAL CLAIM WASN'T CONSIDERED LIKELY TO SUCCEED IN A LETTER TO US STEEL LAWYERS COMMISSION SECRETARY DONNA KOEHNKE SAID THE REQUEST WAS DENIED BECAUSE THE INFORMATION THAT YOU URGE THE COMMISSION TO CONSIDER CONCERNS EVENTS SUBSEQUENT TO THE COMMISSION'S VOTE 9308100062 930810 WHO'S NEWS TEMPLEINLAND INC TEMPLEINLAND INC DIBOLL TEXAS WILLIAM B HOWES 56 YEARS OLD WAS ELECTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INLAND CONTAINER CORP A UNIT OF THIS PAPER AND FINANCIAL SERVICES CONCERN MR HOWES SUCCEEDS BEN J LANCASHIRE WHO RETIRED MR HOWES WAS A GROUP VICE PRESIDENT OF THE PARENT COMPANY 9308100061 930810 INDIANS WIN 57 MILLION IN TIMBER REVENUE CASE WASHINGTON THE US COURT OF FEDERAL CLAIMS AWARDED A GROUP OF CALIFORNIA INDIANS 57 MILLION IN DAMAGES IN A DECADESLONG DISPUTE WITH THE GOVERNMENT OVER TIMBER REVENUES THE CASE ORIGINALLY BROUGHT IN 1963 CENTERS ON A GOVERNMENT DECISION IN 1950 THAT EXCLUDED ABOUT 70 OF INDIANS ON CALIFORNIA'S HOOPA VALLEY RESERVATION FROM SHARING IN MONEY GENERATED BY LOGGING RESERVATION LANDS AT THE TIME THE GOVERNMENT ARGUED THAT THE RESERVATION HOME TO NUMEROUS INDIAN TRIBES SINCE THE 1860S WAS INTENDED AS A HOME FOR ONLY THE HUPA TRIBE THE GOVERNMENT BARRED THE YUROK AND KAROK TRIBES FROM SHARING IN LOGGING REVENUES AS LONG AGO AS 1973 A LOWER COURT RULED THAT THE GOVERNMENT ACTED ILLEGALLY IN EXCLUDING OTHER TRIBES AND ORDERED IT TO COMPENSATE THEM BUT GOVERNMENT LAWYERS HAVE SPENT 20 YEARS APPEALING THAT DECISION INCLUDING FOUR TRIES AT THE US SUPREME COURT IN THE MEANTIME SOME 600 OF THE ORIGINAL PLAINTIFFS DIED CURRENTLY 2600 PLAINTIFFS REMAIN THE JUSTICE DEPARTMENT COULDN'T BE REACHED TO COMMENT ON THE RULING HOWEVER MICHAEL GREENBERG A SAN FRANCISCO ATTORNEY REPRESENTING THE PLAINTIFFS SAID THE GOVERNMENT HAS ALREADY INDICATED IT WILL APPEAL THE DECISION 9308100060 930810 LOCKHEED SEES NEW REVENUE OF 700 MILLION COMMERCIALSATELLITE WORK FOR CELLULAR TELEPHONES IS DUE TO BE ANNOUNCED BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOCKHEED CORP IS EXPECTED TO ANNOUNCE THAT IT WILL RECEIVE 700 MILLION IN REVENUE FROM ITS FIRST COMMERCIALSATELLITE CONTRACT THE CALABASAS CALIF COMPANY WILL ANNOUNCE TODAY THAT IT HAS IRONED OUT DETAILS OF AN AGREEMENT FOR BUILDING MUCH OF THE 66SATELLITE IRIDIUM CELLULAR TELEPHONE NETWORK A 34 BILLION VENTURE LED BY MOTOROLA INC LOCKHEED WOULD HAVE TO BUILD ABOUT HALF THE SATELLITES BY 1998 WHEN TELEPHONE SERVICE IS SCHEDULED TO BEGIN THE FIRST LAUNCH IS SLATED FOR 1996 THE LOWALTITUDE SYSTEM IS INTENDED TO PROVIDE GLOBAL COVERAGE FOR TELEPHONE USERS BUT AT RATES OF ABOUT 3 A MINUTE OR SIX TIMES THE COST OF CURRENT SYSTEMS A LOCKHEED SPOKESWOMAN WOULDN'T COMMENT ON THE ANNOUNCEMENT WHICH WAS CONFIRMED BY PEOPLE FAMILIAR WITH IT LOCKHEED WHICH IS SAID TO HAVE INVESTED 20 MILLION IN THE CONSORTIUM HAS BEEN A BIG PLAYER IN THE MILITARYSATELLITE BUSINESS SINCE THE 1950S IT NOW HAS THE CONTRACT FOR MILSTAR THE NEXTGENERATION US MILITARYCOMMUNICATIONS SYSTEM IN THE IRIDIUM CONTRACT LOCKHEED EVENTUALLY WILL BUILD 125 SPACECRAFT BUSES FOR AN EQUAL NUMBER OF SATELLITES FOR USE IN THE INITIAL SYSTEM AND AS REPLACEMENTS THE CONTRACT CALLS FOR LOCKHEED'S MISSILES AND SPACE UNIT TO CONSTRUCT THE SATELLITES EXCEPT FOR THE COMMUNICATIONS GEAR AND ANTENNA WHICH WILL BE BUILT BY MOTOROLA AND RAYTHEON CORP RESPECTIVELY LOCKHEED WILL BUILD THE SATELLITE STRUCTURE SOLAR PANELS ATTITUDE AND PROPULSION SYSTEMS ALONG WITH OTHER PARTS AND ENGINEERING SUPPORT WHILE LOCKHEED HAS DELVED HEAVILY INTO SOME AREAS OF THE DEFENSE INDUSTRY ITS SUCCESS HAS BEEN LIMITED RESEARCHERS AT LOCKHEED HARBOR VISONS OF EXPANSION IN COMMERCIAL SPACE PROJECTS THEY'RE DEEP INTO STUDIES OF COMMERCIAL REMOTESENSING SYSTEMS AND A LARGER COMMERCIAL SATELLITE CALLED FSAT BUT THE FORAY INTO A NEW FIELD SENDS LOCKHEED HEADLONG INTO A CONTEST WITH SUCH POWERFUL RIVALS AS HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP MARTIN MARIETTA CORP AND LORAL CORP AT HUGHES ONE SENIOR MANAGER NOTED THAT LOCKHEED TOYED WITH ENTERING THE COMMERCIAL SATELLITE BUSINESS IN THE 1960S BUT BACKED OFF NOW HE SAID LOCKHEED FACES AN ESPECIALLY TOUGH COMPETITIVE ENVIRONMENT THE LOCKHEED SPOKESWOMAN SAID THE COMPANY IS LOOKING SELECTIVELY AT A NUMBER OF DIFFERENT COMMERICAL VENTURES INCLUDING PROGRAMS IN WHICH WE WOULD TAKE MUCH MORE OF A LEADING ROLE HOWEVER SHE SAID NO DECISIONS HAVE BEEN MADE ON WHETHER TO PROCEED WOLFGANG DEMISCH AN AEROSPACE ANALYST WITH BT SECURITIES IN NEW YORK SAID THE PRINCIPAL RISK FOR LOCKHEED IN THE IRIDIUM PROGRAM IS MEETING THE TERMS OF ITS UNUSUAL CONTRACT TO ESSENTIALLY MASSPRODUCE SATELLITES LOCKHEED IS TECHNICALLY WISE FROM ITS MILITARY WORK AND HAS ITS FIRST FOOTHOLD IN THE COMMERCIAL END OF THE INDUSTRY MR DEMISCH SAID ADDING THAT THAT GIVES THE COMPANY AT LEAST A SHOT AT BEING AN EFFECTIVE COMPETITOR OVER THE LONG TERM 9308100059 930810 POLICY MANAGEMENT SAYS '92 AUDIT OPINION WILL BE WITHDRAWN COLUMBIA SC POLICY MANAGEMENT SYSTEMS CORP WHOSE FINANCIAL REPORTING IS UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION SAID ITS INDEPENDENT ACCOUNTANT PLANS TO WITHDRAW ITS AUDIT OPINION ON THE COMPANY'S 1992 FINANCIAL STATEMENTS THE ACTION BY CHICAGO ACCOUNTING FIRM ARTHUR ANDERSEN & CO IS DUE TO THE SIGNIFICANT UNCERTAINTY ARISING FROM AN INTERNAL INVESTIGATION OF ACCOUNTING AND BUSINESS PRACTICES POLICY MANAGEMENT SAID ARTHUR ANDERSEN COULD NOT BE REACHED TO COMMENT SEPARATELY POLICY MANAGEMENT AN INSURANCE SOFTWARE CONCERN SAID THAT BECAUSE OF ITS CONTINUING REVIEW IT WILL BE UNABLE TO RELEASE SECONDQUARTER RESULTS BY AUG 14 THE ACCOUNTING ISSUES BEING REVIEWED INCLUDE TIMING OF REVENUE RECOGNITION UNDER CERTAIN LICENSING AGREEMENTS POLICY MANAGEMENT SAID IN APRIL POLICY MANAGEMENT DISCLOSED THAT FIRSTQUARTER RESULTS WOULD FALL WELL BELOW THE COMPANY'S EXPECTATIONS BECAUSE SEVERAL CONTRACTS HADN'T CLOSED AS EXPECTED THAT NEWS PROMPTED ITS SHARE PRICE TO FALL 43 IN A SINGLE DAY SINCE THEN THE ACCURACY OF THE COMPANY'S FINANCIAL REPORTING HAS BECOME THE SUBJECT OF FEDERAL AND INTERNAL INVESTIGATIONS SEVERAL SHAREHOLDERS HAVE SUED POLICY MANAGEMENT ALLEGING THAT MANAGEMENT MISREPRESENTED THE COMPANY'S FINANCIAL HEALTH POLICY MANAGEMENT STOCK WHICH LOST AS MUCH AS 4125 A SHARE AT ONE POINT YESTERDAY CLOSED AT 24875 DOWN 250 OR 91 ON THE NEW YORK STOCK EXCHANGE 9308100058 930810 HEARD ON THE STREET THIS TIME DRUG STOCKS TAKE A HIT OVER LOSS OF MUCH OF COVETED PUERTO RICAN TAX BREAK BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FORGET ABOUT SILVER LININGS WHEN IT COMES TO DRUG STOCKS INVESTORS SEEM TO SEE NOTHING BUT CLOUDS THESE DAYS THE LATEST BIT OF DEPRESSING NEWS TO HIT THE ALREADY BADLY BEATEN GROUP IS A PROVISION IN PRESIDENT CLINTON'S BUDGET BILL THAT WILL DELIVER A DOUBLE WHAMMY OF A TAX INCREASE TO DRUG MANUFACTURERS NOT ONLY WILL THEY FACE THE SAME INCREASE IN THE CORPORATE TAX RATE AS OTHER BUSINESSES TO 35 FROM 34 BUT MANY DRUG MANUFACTURERS ALSO ARE ABOUT TO LOSE MUCH OF A MAJOR TAX BENEFIT ASSOCIATED WITH THEIR OPERATIONS IN PUERTO RICO FOR SOME OF THE LARGEST DRUG CONCERNS THE SWITCH COULD REDUCE 1994 EARNINGS BY BETWEEN FIVE CENTS AND 25 CENTS A SHARE AS THE NEW TAX RULES GRAB HOLD ANALYSTS ESTIMATED AS THE DRUG STOCKS SANK YESTERDAY MORNING THAT'S A SIZABLE CHUNK FOR AN INDUSTRY WHOSE ONCEROBUST EARNINGS GROWTH RATE ALREADY HAS SLOWED TO SINGLE DIGITS IN MANY CASES IT'S ANOTHER PIECE OF BAD CONFUSING NEWS SAID LOIS FRIEDMAN A HEALTHCARE ANALYST WITH PUTNAM COS WHO HAS BEEN ADVISING PORTFOLIO MANAGERS AT THE BOSTON INVESTMENT FIRM TO AVOID MOST DRUG STOCKS BUT HAVEN'T DRUG STOCKS FALLEN SO LOW THAT THEY SHOULD BE IMMUNE TO ONE MORE NEGATIVE ANNOUNCEMENT SO FAR IT DOESN'T SEEM THAT WAY WITH THE STOCKS SWOONING EVERY TIME A BIT OF DISTURBING NEW HITS INVESTORS FLED FROM THE DRUG STOCKS EARLY YESTERDAY WORST HIT WERE SCHERINGPLOUGH WHICH FINISHED DOWN 1 3/4 AT 59 3/8 BRISTOLMYERS SQUIBB WHICH EBBED 3/4 TO 51 3/4 AND WARNERLAMBERT WHICH FELL 7/8 TO 65 3/8 BY DAY'S END HOWEVER SOME STOCKS HAD BOUNCED BACK PFIZER WAS UP 1/2 TO 59 5/8 AND UPJOHN FINISHED 1/8 HIGHER AT 27 LOTS OF INVESTORS SAY THEY ARE PREPARING FOR EVEN MORE DISTURBING DEVELOPMENTS WITH HEALTHCARE REFORM LOOMING IN SEPTEMBER IT'S DIFFICULT TO SAY THE STOCKS HAVE YET BOTTOMED SAID NORMAN FIDEL A HEALTHCARE ANALYST AT ALLIANCE CAPITAL MANAGEMENT YESTERDAY INVESTORS WERE WRINGING THEIR HANDS ABOUT THE LOSS OF MUCH OF THE GENEROUS TAX BENEFIT GIVEN TO DRUG MANUFACTURERS YEARS AGO TO ENCOURAGE THEM TO MOVE OPERATIONS TO PUERTO RICO AND PROVIDE JOBS THERE UNDER THE OLD RULE DRUG MANUFACTURERS WERE EXEMPT FROM FEDERAL TAXES ON INCOME EARNED IN PUERTO RICO KNOWING A GOOD DEAL WHEN THEY SAW ONE LARGE COMPANIES SUCH AS UPJOHN SCHERINGPLOUGH PFIZER AND WARNERLAMBERT TOOK THE GOVERNMENT UP ON ITS OFFER MOVING BIG OPERATIONS TO THE CARIBBEAN ISLAND THE BENEFITS TRANSLATED INTO BIG BUCKS FOR DRUG MANUFACTURERS LAST YEAR TAX BENEFITS DERIVED FROM OPERATING IN PUERTO RICO REDUCED THE LARGEST DRUG COMPANIES' TAX RATES BY AN AVERAGE OF 75 PERCENTAGE POINTS ACCORDING TO A RESEARCH REPORT FAXED TO CLIENTS YESTERDAY MORNING BY JEROME BRIMEYER AN ANALYST WITH LEHMAN BROTHERS MORE IMPORTANT TO INVESTORS MR BRIMEYER ESTIMATES THAT THE TAX EXEMPTION ENHANCED EARNINGS BY AN AVERAGE OF 103 FOR EIGHT MAJOR DRUG COMPANIES IN 1992 NOW HOWEVER MR BRIMEYER SAYS UPJOHN'S TAX RATE WILL RISE TO 30 FROM 25 HE LOWERED HIS 1994 EARNINGS ESTIMATE 66 TO 285 A SHARE FROM 305 PFIZER EXPECTS ITS EFFECTIVE TAX RATE TO RISE TO 30 FROM 26 MR BRIMEYER SAYS 1994 EARNINGS WILL BE 440 A SHARE DOWN FROM HIS EARLIER ESTIMATE OF 465 THE PROVISION WHICH IS EXPECTED TO BE SIGNED INTO LAW THIS WEEK WITH THE REST OF THE BUDGET PACKAGE WOULD COST JOBS IN PUERTO RICO BUT WOULD ADD A TOTAL OF 375 BILLION TO THE FEDERAL GOVERNMENT'S COFFERS IN THE NEXT FIVE YEARS UNDER THE BILL DRUG MANUFACTURERS' EXEMPTIONS FOR PUERTO RICAN OPERATIONS NEXT YEAR WOULD FALL TO 60 FROM 100 BY 1998 THE EXEMPTION WILL SHRINK TO 40 FALLING AT A RATE OF FIVE PERCENTAGE POINTS EACH YEAR IT WOULDN'T BE SO BAD IF THE TAX INCREASE WAS ALL DRUG MANUFACTURERS HAD TO WORRY ABOUT BUT THE CLINTON ADMINISTRATION IS EXPECTED TO UNVEIL ITS HEALTHCARE REFORMS AS SOON AS SEPTEMBER TRUE INVESTORS SOLD DRUG STOCKS MONTHS AGO IN FEAR OF THE REFORMS BUT INVESTORS GOT IMPATIENT AND THE GROUP REBOUNDED IN THE SPRING NOW SAYS PUTNAM'S MS FRIEDMAN THE STOCKS ARE GIVING BACK THOSE GAINS THERE'S MORE INVESTORS ARE STILL SCRATCHING THEIR HEADS ABOUT WHAT MERCK'S MERGER WITH MEDCO CONTAINMENT SERVICES WILL MEAN FOR THE INDUSTRY THAT REALLY CHANGES THE LANDSCAPE SAYS MS FRIEDMAN BUT UNTIL THE NEW LANDSCAPE IS CLEARER MANY INVESTORS SAY THEY ARE STAYING ON THE SIDELINES FOR THOSE DETERMINED TO INVEST IN DRUG STOCKS ONE STRATEGY ALBEIT RISKY WOULD BE TO INVEST IN THE WEAKEST OF THE DRUG MANUFACTURERS ON THE THEORY THAT THEY WILL EVENTUALLY BE MERGED WITH OR ACQUIRED BY OTHER COMPANIES SOME INVESTORS ARE BUYING UPJOHN SYNTEX SCHERINGPLOUGH AND WARNERLAMBERT ON THAT THEORY SAYS KENNETH SHEINBERG A VICE PRESIDENT AT NATWEST SECURITIES WHO TRADES DRUG STOCKS BUT THESE INVESTORS COULD BE STUCK WITH LAGGARD STOCKS IF THE TAKEOVER CONSOLIDATION IN THE INDUSTRY DOESN'T DEVELOP AS QUICKLY AS INVESTORS HOPE MANY OF THE RUMORED TAKEOVER TARGETS HAVE RELATIVELY LITTLE TO OFFER IN NEW PRODUCTS MS FRIEDMAN SAYS 9308100057 930810 POLITICS & POLICY CLINTON HITS ROAD TO HELP BUDGET ALLIES BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL CHARLESTON WVA PRESIDENT CLINTON HIT THE ROAD TO LEND SUPPORT TO THE MANY DEMOCRATS WHO VOTED FOR HIS BUDGET BILL AND ALSO TO WOO THE MANY REPUBLICANS HE WILL NEED TO PASS THE REST OF HIS AMBITIOUS AGENDA IN HIS FIRST TRIP OUTSIDE WASHINGTON SINCE HIS BUDGET VICTORY LAST WEEK MR CLINTON LAVISHED PRAISE ON THE VARIOUS ELEMENTS OF THE DEFICITREDUCTION PLAN ITS SPENDING RESTRAINT BUSINESS INCENTIVES ANTIPOVERTY PROGRAMS AND TAX INCREASES MOSTLY ON UPPERINCOME AMERICANS NOW WE CAN TRULY SAY CHANGE HAS COME TO AMERICA HE BOASTED DURING A CAMPAIGNSTYLE RALLY HERE BUT MR CLINTON REMINDED THE FRIENDLY AUDIENCE WAVING FLAGS AT THE STEPS OF THE DOMED STATE CAPITOL THAT THE NARROW VICTORY WAS JUST A GOOD BEGINNING STILL ON THE WAY HE SAID IS WELFARE OVERHAUL AN ANTICRIME BILL AN EFFORT TO STREAMLINE THE FEDERAL BUREAUCRACY AND MOST IMPORTANT AN ATTEMPT TO REVAMP THE NATION'S HEALTHCARE SYSTEM HE CALLED THE PROBLEMS WITH HEALTH CARE THE GREATEST CONTINUING THREAT TO OUR ECONOMIC SECURITY AND TO THE PERSONAL SECURITY OF MOST AMERICANS UNLIKE THE BUDGET PACKAGE WHICH DIDN'T RECEIVE A SINGLE GOP VOTE THE REMAINING INITIATIVES WILL REQUIRE REPUBLICAN SUPPORT TO SUCCEED TO THAT END HE VOICED AN APPEAL FOR BIPARTISANSHIP BUT WITH A VEILED REFERENCE TO SOMETIME PRESIDENTIAL CANDIDATE ROBERT DOLE OF KANSAS THE SENATE REPUBLICAN LEADER WE CANNOT HAVE EVERY GREAT ISSUE OF THE DAY DECIDED ON THE BASIS OF PARTISANSHIP SCHEDULED AROUND THE NEXT TRIP TO NEW HAMPSHIRE FOR A PRIMARY STILL FOUR YEARS AWAY MR CLINTON SAID WE HAVE GOT TO DO SOME OF THESE THINGS TOGETHER SEN DOLE THREW BACK A POLITICAL BARB OF HIS OWN SAYING MR CLINTON STILL ACTS AS IF THE LAST PRESIDENTIAL CAMPAIGN WAS STILL IN PROGRESS IN A STATEMENT MR DOLE ECHOED THE PRESIDENT'S CALL FOR BIPARTISANSHIP BUT COMPLAINED THAT HE HAS ONLY RARELY ASKED FOR OUR COOPERATION AND IGNORED OUR EFFORTS TO HELP WHEN IT WAS OFFERED THE PRESIDENT DIDN'T INCLUDE THE NORTH AMERICAN FREE TRADE AGREEMENT IN THE LIST OF INITIATIVES THAT NEED GOP VOTES TO WIN EVEN THOUGH IT IS AMONG THE NEEDIEST IN THAT REGARD THE FREETRADE PACT IS RELATIVELY UNPOPULAR IN THIS FINANCIALLY STRUGGLING AND PROUNION STATE AND ALTHOUGH NAFTA IS A PRIORITY WITH MR CLINTON MANY OF HIS FELLOW DEMOCRATS OPPOSE IT WHITE HOUSE AIDES SAID THAT PROMOTING THE BUDGET BILL AFTER ITS PASSAGE IS UNUSUAL BUT THAT IT IS NECESSARY IN THIS CASE BECAUSE MANY DEMOCRATS WHO SUPPORTED IT PUT THEMSELVES AT POLITICAL RISK YESTERDAY MR CLINTON ACKNOWLEDGED THAT SOME HAD PUT THEIR NECKS ON THE LINE AND NAMED ONE FRESHMAN REP MARJORIE MARGOLIESMEZVINSKY OF PENNSYLVANIA WHOSE CRUCIAL VOTE AT THE LAST MINUTE HELPED PUT THE BILL OVER AS ADDED ASSURANCE THE DEMOCRATIC NATIONAL COMMITTEE IS CONTINUING TO PAY FOR TELEVISION AND RADIO COMMERCIALS PROMOTING THE BUDGET PLAN IN SELECTED PARTS OF THE COUNTRY TO BOLSTER ATRISK DEMOCRATS WHO VOTED YES 9308100056 930810 WHO'S NEWS WESTMORELAND COAL CO WESTMORELAND COAL CO PHILADELPHIA FRANCIS J BOYLE 47 YEARS OLD WAS ELECTED SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER MR BOYLE WHO SUCCEEDS LARRY ZALKIN AS CHIEF FINANCIAL OFFICER AND JOHN LAMOND AS TREASURER WAS CHIEF FINANCIAL OFFICER OF EL PASO NATURAL GAS CO MESSRS ZALKIN AND LAMOND LEFT THE COMPANY 9308100055 930810 LEISURE & ARTS NEW FRENCH CULTURE MINISTER SITS TIGHT BY ALEXANDRA TUTTLE PARIS JACK LANG FRANCE'S FORMER MINISTER OF ALL TRADES CULTURE EDUCATION PUBLIC WORKS IS A HARD ACT TO FOLLOW DESPITE THE CRITICAL BOOKS AND CARPING PRESS MR LANG WAS FRANCE'S MOST VISIBLE AND POWERFUL POLITICIAN AFTER PRESIDENT MITTERRAND BY THE END OF HIS REIGN IN MARCH HE HAD BECOME A SUPERMINISTER OF SORTS WITH FAR MORE CLOUT THAN THE PRIME MINISTER HIS SUCCESSOR JACQUES TOUBON A 52YEAROLD CASINO CROUPIER'S SON FROM NICE IS RESERVED AND CAUTIOUS UNLIKE THE FORMER MINISTER OF CULTURE HE SPELLS HIS FIRST NAME THE FRENCH WAY WITH HIS ROUND FACE AND PINK SKIN HIS IS NOT THE FACE TO LAUNCH A THOUSAND COVER STORIES OR HIGHPROFILE INTERVIEWS AS A GRADUATE OF THE PRESTIGIOUS ECOLE NATIONALE D'ADMINISTRATION HE OWES MUCH TO THE RIGOROUS AND ELITE EDUCATION THAT SMOOTHED HIS PATH TO THE TOP BUT HE ALSO CARRIES THE WEIGHT OF ENA'S BUREAUCRATIC RIGID FORMATION MR LANG WAS A BOHEMIAN SWASHBUCKLER BY CONTRAST AN ARTISTE AND A THEATER IMPRESARIO OF LONG STANDING BEFORE HE PICKED UP HIS MINISTERIAL PORTFOLIO SO A CAUTIOUS ADMINISTRATOR OF CULTURE HAS SUCCEEDED A DASHING CULTURE CZAR MR TOUBON'S CAUTION IS CLEARLY REFLECTED IN THE PACE OF HIS REFORMS HE DID NOT REVEAL HIS NEW PLANS FOR THE MINISTRY UNTIL MIDJUNE NEARLY THREE MONTHS AFTER THE NEW CONSERVATIVE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR WAS VOTED INTO POWER AND HE IS STILL WORKING OUT THE KINKS IN HIS PLANS TO REFORM MANY OF THE SOCIALISTS' PET PROJECTS INCLUDING THE BASTILLE OPERA THE NEW NATIONAL LIBRARY AND FRANCE'S TROUBLED TELEVISION NETWORKS MR LANG'S TENURE IN CONTRAST STARTED WITH A BANG HE ANNOUNCED THAT FRENCH CULTURE WILL BE SOCIALIST OR IT WILL NOT BE AND HE CONTINUED AGGRESSIVELY FOR THE NEXT DECADE ISSUING A SCATHING CHALLENGE ALONG THE WAY TO WHAT HE CALLED AMERICAN CULTURAL IMPERIALISM AND ANYTHING ELSE THAT STOOD IN THE WAY OF FRANCE'S CULTURAL PREEMINENCE MEANWHILE THE ARTS BUDGET MORE THAN DOUBLED NEARLY ATTAINING MR LANG'S LONGCHERISHED IDEAL OF 1 OF THE GOVERNMENT'S TOTAL OUTLAY 14 BILLION FRANCS 24 BILLION HE THREW MONEY AT RAP AND GRAFFITI BUYING FRANCE A LONGDESIRED PLACE IN THE REALM OF POPULAR ART AMERICA MIGHT HAVE THE GRAFFITI ARTISTS BUT PARIS HAD THE GRAFFITI FESTIVAL SPONSORED BY MR LANG MOST IMPORTANT OF ALL HUGE MONUMENTS SPROUTED ALL OVER PARIS LIKE MUSHROOMS TRIBUTES TO THE GLORY OF FRANCOIS MITTERRAND FRANCE'S MODERNDAY CHEOPS THESE GRANDS TRAVAUX INCLUDE THE SUBLIME IM PEI'S GLASS PYRAMIDS AT THE NEW GRAND LOUVRE AND THE RIDICULOUS THE STUBBY INTRUSIVE LITTLE COLUMNS IMPLANTED IN THE FORECOURT OF THE PALAIS ROYALE PARIS LIKE ROME WAS NOT BUILT IN A DAY BUT IT WAS SUBSTANTIALLY REBUILT IN THE 10 YEARS OF THE SOCIALISTS' TENURE ALL THIS COST AND CONTINUES TO COST A LOT OF MONEY BUT THE ECONOMY THAT WAS BOOMING DURING THE LANG ERA IS NOW RUNNING AT A DEFICIT OF 226 BILLION FRANCS 375 BILLION PRIME MINISTER BALLADUR HAS ASKED HIS NEW CABINET TO CUT 20 BILLION FRANCS 33 BILLION FROM THE ANNUAL BUDGET HENCE MR TOUBON'S TALK OF AUSTERITY ACCOUNTABILITY AND RIGOR IN A RECENT INTERVIEW UNFORTUNATELY REALITY DICTATES THAT MR TOUBON CARRY OUT SOME OF THE PREVIOUS GOVERNMENT'S MOST GRANDIOSE PLANS HE WILL FINISH THE 72 BILLION FRANC 12 BILLION TRES GRANDE BIBLIOTHEQUE THE CONTROVERSIAL NEW HOME FOR THE NATIONAL LIBRARY IF ONLY BECAUSE MR LANG SPENT MORE THAN HALF THAT DIGGING THE HOLE FOR IT BUT NEW PROJECTS OR RENOVATIONS MAY BE CURTAILED THE FINAL RENOVATIONS OF THE 56 BILLION FRANC 967000 GRAND LOUVRE PROJECT COULD BE AXED ALONG WITH THE NEW 1100SEAT AUDITORIUM THE BASTILLE OPERA WANTS TO BUILD I AM HOPING THAT ONCE THE PROJECTS ARE FINISHED WE CAN DEVOTE THE MONEY TO ALL THOSE AREAS OF CULTURE THAT HAVE BEEN NEGLECTED MR TOUBON SAYS WHILE HE SEEMS TEMPERAMENTALLY SUITED TO THIS WAITING GAME MR TOUBON HAS MOVED RAPIDLY TO ATTACK A MAJOR WEAKNESS IN THE LANG PROGRAM WHICH THREW MONEY AT FRANCE'S TARNISHED CULTURAL INSTITUTIONS AND LAVISHLY PROMOTED NATIVE CULTURE BUT DID NOTHING TO IMPROVE ARTS EDUCATION ALTHOUGH HE MORE THAN DOUBLED THE ARTS BUDGET SAYS MR TOUBON THE PUBLIC'S KNOWLEDGE AND APPRECIATION OF ART HAS NOT INCREASED THE SPECIALIZED ART SCHOOLS ARE BETTER THAN EVER IT'S AT THE MOST GENERAL LEVEL THAT THINGS MUST IMPROVE NOTING THAT THE TEACHING OF ART AT THE PRIMARY AND SECONDARY LEVEL IS CURSORY AND FORMAL HE CALLS FOR DEVELOPING AND IMPROVING ARTS COURSES AS WELL AS THE EXISTING ARTS OPTION IN HIGH SCHOOLS IN AN IDEAL SCHOOL HE SAYS HALF THE DAY SHOULD BE DEVOTED TO CULTURE AND SPORT WHICH HE MISTAKENLY ASSUMES TO BE THE CASE IN THE US THE OTHER AREA MR TOUBON HAS MARKED FOR IMPROVEMENT IS THE REGIONAL ARTS SCENE ALTHOUGH THE LANG ADMINISTRATION DECENTRALIZED THE CULTURE MINISTRY ALLOCATING 40 OF THE ARTS BUDGET TO FRANCE'S REGIONS MOST OF THIS MONEY REMAINED IN THE LARGE PROVINCIAL CITIES MR TOUBON WOULD LIKE TO SEE EVENTS TRAVEL AROUND THE COUNTRYSIDE TO THE SMALLER TOWNS AND VILLAGES ONE OF HIS QUIRKIER PLANS IS TO TAKE AN INVENTORY OF FRANCE'S CULTURAL VENUES FROM LOCAL CAFE THEATERS AND OUTDOOR CONCERT HALLS TO MUSEUMS AND CULTURAL CENTERS A GARGANTUAN TASK THAT WILL PROBABLY DO LITTLE MORE THAN WASTE TIME AND MONEY IN ONE IMPORTANT SENSE MR TOUBON REMAINS TRUE TO THE VERY FRENCH AMBITIONS OF HIS PREDECESSOR HE IS EVERY BIT AS PROTECTIVE OF FRANCE'S CULTURAL INTERESTS AS MR LANG WAS WE WILL NOT LET THE ARTS BE TREATED AS JUST ANOTHER COMMODITY FOR THE GATT GENERAL AGREEMENT ON TARIFFS AND TRADE NEGOTIATIONS TO RAKE OVER HE SAYS FIRMLY A CULTURAL POLICY IS THE WAY YOU PROTECT ART FROM RUTHLESS MARKET FORCES TO THIS END HE ALREADY HAS PLANS UNDERWAY TO PROTECT FRANCE'S FALTERING TELEVISION AND CINEMA INDUSTRIES YET HE CONCEDES THE FRENCH COULD DO WITH A FEW MORE RUTHLESS MARKET FORCES IN THE ARTS ESPECIALLY IN THE CINEMA THE MINISTER ADMITS THAT DESPITE EXTENSIVE FUNDING WHICH AT THE EQUIVALENT OF 23 BILLION OVERWHELMS THE PUNY FEDERAL ARTS FUNDING OF 363 MILLION IN THE US THE PUBLIC IS STAYING AWAY FROM SUBSIDIZED CULTURE IN DROVES HIS SOLUTION IS TO PUT THE CONTROL OVER ARTS SPENDING BACK WHERE IT BELONGS WITH THE ARTISTS AND INSTITUTIONS THEMSELVES INSTEAD OF WITH MR LANG'S MANY COMMITTEES AND ASSOCIATIONS HE BELIEVES MONEY SHOULD BE DIRECTED TOWARD QUALITY PRODUCTIONS NOT AS IT HAS BEEN TOWARD SHEER QUANTITY FUNDING ONLY THE BEST IS ONE WAY OF MAKING SURE THAT ONLY THE BEST GETS MADE IN THIS MR TOUBON IS RIGHT BUT RUTHLESS COMPETITION ALSO HAS ITS ROLE FOR EXAMPLE THROWING FILMS TO THE LIONS IN THE MARKETPLACE WOULD PROBABLY SERVE TO IMPROVE THE OVERALL LEVEL OF QUALITY IN THE INDUSTRY MR TOUBON MAY ECHO MR LANG'S STAUNCH DEFENSE OF THE CINEMA AND POPULAR CULTURE IN GENERAL BUT HE CLEARLY WON'T REPEAT HIS PREDECESSOR'S MARKED EXCESSES IN THAT AREA UNLIKE MR LANG HE SEEMS TO UNDERSTAND THAT THERE IS NO SUCH THING AS A CONSERVATIVE OR SOCIALIST FOR THAT MATTER CULTURE IN THIS COUNTRY THERE'S ONLY A FRENCH ONE MS TUTTLE IS A WRITER IN PARIS 9308100054 930810 WHAT'S NEWS BUSINESS AND FINANCE STOCKS AND BONDS RALLIED IGNITED BY FRIDAY'S PASSAGE OF CLINTON'S DEFICITREDUCTION PLAN THE DOW INDUSTRIALS CLIMBED 1565 TO A RECORD 357608 LONGTERM INTEREST RATES FELL TO A 16YEAR LOW THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR BOND SOARED 3/4 POINT ITS YIELD FELL TO 647 HILLARY CLINTON TOLD HOSPITAL EXECUTIVES THE ADMINISTRATION IS MOVING TO HELP HEALTHCARE PROVIDERS ENTER JOINT VENTURES WITHOUT RUNNING AFOUL OF ANTITRUST LAWS NEW GUIDELINES WOULD ENCOURAGE MORE HOSPITALS TO COLLABORATE FROM SHARING TECHNOLOGY TO JOINTLY PROVIDING COMMUNITY CARE NETWORKS DEFENSE DEPARTMENT AUDITS CITED IN A GOVERNMENT REPORT SHOW A PATTERN OF QUESTIONABLE COMMISSIONS PAID BY AMERICAN COMPANIES SELLING MILITARY EQUIPMENT TO EGYPT UNDER A USFINANCED FOREIGNAID PROGRAM BIG CABLE OPERATORS SHOULD BE INVESTIGATED FOR THEIR REFUSAL TO PAY LOCAL TV STATIONS' PROGRAMMING FEES DESPITE A NEW LAW GIVING STATIONS A RIGHT TO CHARGE THE FEES A SENATOR SAID LEE IACOCCA SAID HE INTENDED TO SELL 12 MILLION SHARES OF CHRYSLER THE COMPANY HE RAN UNTIL DECEMBER AT AN INDICATED VALUE OF ABOUT 533 MILLION CARS AND LIGHT TRUCKS ARE SELLING AT A RECORD PACE IN LATIN AMERICA THANKS TO AN ECONOMIC RECOVERY TRADE LIBERALIZATION AND LOWER PRICES CHARTER MEDICAL AGREED TO SELL ITS MEDICALSURGICAL HOSPITALS TO QUORUM HEALTH GROUP FOR 340 MILLION AS PART OF CHARTER'S PLAN TO FOCUS ON ITS PSYCHIATRICHOSPITAL BUSINESS CHARTER'S STOCK ROSE 150 OR 75 TO 2150 AT&T NAMED JOSEPH NACCHIO A COMBATIVE MARKETER TO HEAD ITS RESIDENTIAL LONGDISTANCE BUSINESS THE MOVE IS PART OF A CONTINUING MANAGEMENT SHAKEUP INTENDED TO FURTHER AT&T'S PLANS TO EXPAND INTO FOREIGN MARKETS AND MULTIMEDIA PRODUCTS GENENTECH WON AN FDA PANEL'S RECOMMENDATION THAT ITS DNASE BE APPROVED AS THE FIRST NEW THERAPY FOR CYSTIC FIBROSIS PATIENTS IN 30 YEARS LOCKHEED EXPECTS 700 MILLION IN REVENUE FROM ITS FIRST COMMERCIALSATELLITE CONTRACT WHICH WILL BE PART OF A MOTOROLALED CELLULAR PHONE NETWORK UNISYS'S PRESIDENT IS LEAVING THE COMPANY AS THE COMPUTER MAKER CONTINUES TO STREAMLINE AND MOVE AWAY FROM ITS MAINFRAME BUSINESS ROCKWELL INTERNATIONAL AGREED TO BUY WESTERN DIGITAL'S SILICON WAFER FABRICATING PLANT FOR OVER 115 MILLION MOVING TO EXPAND ITS FASTGROWING COMMERCIAL ELECTRONICS BUSINESS GOLD FUTURES RALLIED REGAINING SOME OF THEIR LOSSES FOLLOWING THE MARKET'S SHARP SELLOFF LATE LAST WEEK LONDON SHARES ROSE TO A RECORD FOR THE SECOND SESSION IN A ROW ON HOPES FOR LOWER EUROPEAN INTEREST RATES OTHER EUROPEAN BOURSES WERE MIXED TOKYO'S NIKKEI ROSE 13511 TO 2049305 GERMANY'S BERTELSMANN IS LOOKING TO INVEST IN A HOLLYWOOD FILM STUDIO A CASTLE ROCK ENTERTAINMENT EXECUTIVE SAYS BERTELSMANN IS COMPETING WITH TURNER BROADCASTING FOR A LARGE STAKE IN THE MOTION PICTURE STUDIO SARA LEE'S PROFIT ROSE 12 IN THE LATEST QUARTER ON A 13 SALES INCREASE DESPITE SLOW ECONOMIES IN WORLD MARKETS WHERE THE FOOD AND APPAREL MAKER HAS FOCUSED ITS GROWTH STRATEGY BONDS LEHMAN BROTHERS TREASURY INDEX 541932 UP 3232 COMMODITIES OIL 1755 A BARREL UP 28 CENTS DOW JONES FUTURES INDEX 12811 OFF 047 SPOT INDEX 12476 UP 048 DOLLAR 10489 YEN UP 048 16975 MARKS UP 00010 9308100053 930810 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN INDIA'S QUARTERLY TRADE DEFICIT SHRANK 81 AS EXPORTS SURGED 28 ENDING THE SLUMP CAUSED BY FALTERING ECONOMIES OF THE FORMER EAST BLOC THAT UNTIL 1991 ACCOUNTED FOR 20 OF INDIA'S TRADE EXPORTS IN THE LATEST QUARTER TOTALED 513 BILLION AND IMPORTS EASED 27 TO 543 BILLION YIELDING A TRADE DEFICIT OF 3015 MILLION A SHARP NARROWING FROM THE YEAREARLIER 156 BILLION INDIA'S ECONOMY HAS RECOVERED FROM DISRUPTIONS CAUSED BY RELIGIOUS RIOTS IN LATE 1992 AND BOMBINGS IN MARCH EXPORTERS HAVE GOTTEN A LIFT IN RECENT MONTHS FROM THE INDIAN RUPEE'S DECLINE AGAINST THE US DOLLAR MAKING INDIAN GOODS LESS EXPENSIVE IN FOREIGN MARKETS CHINA TOLD ITS MASS MEDIA TO SCALE BACK FOREIGN PROGRAMMING AND FOCUS MORE ON IDEOLOGICAL TOPICS TO BOOST COMMUNIST PARTY PROPAGANDA THE HONG KONG NEWSPAPER MING PAO SAID CHINA'S PROPAGANDA AGENCY DECIDED TO SHAKE UP MEDIA AND CULTURAL CIRCLES WHEN PRESIDENT JIANG ZEMIN CHARACTERIZED AS ABNORMAL THE CULT STATUS OF SOME HONG KONG AND TAIWAN FILM AND POP STARS CHINA BEGAN CUTTING OFF BROADCASTS OF HIGHLY POPULAR RADIO PHONEIN SHOWS HOSTED BY BROADCASTERS FROM HONG KONG AND TAIWAN THAT ATTRACTED MANY CALLERS AIRING GRIEVANCES GERMAN RETAILERS AND UNIONS REJECTED A CALL BY POLITICIANS TO ALLOW STORES MORE FLEXIBILITY IN OPERATING HOURS STORES NOW MUST CLOSE BY 630 PM WEEKDAYS EXCEPT THURSDAYS WHEN LIGHTS GO OUT AT 830 PM ON SATURDAYS STORES MUST CLOSE FOR THE WEEKEND BY 2 PM EXCEPT FOR THE FIRST SATURDAY OF EACH MONTH WHEN EITHER 4 PM OR 6 PM IS ALLOWED RETAILERS SAID LONGER HOURS WOULD INCREASE COSTS AND REDUCE JOBS AND UNDERQUALIFIED STAFF WOULD HURT CUSTOMER SERVICE UNIONS SAID THE THURSDAYNIGHT HOURS EXTENSION SEVERAL YEARS AGO HAS ONLY DIVERTED SALES FROM SMALLER BUSINESSES AND COST THEM JOBS CUBA WHICH TWO WEEKS AGO ALLOWED POSSESSION AND USE OF HARD CURRENCIES SLAPPED A 50 PRICE INCREASE ON GOODS SOLD FOR DOLLARS LIFTING THE FOREIGNMONEY BAN WAS INTENDED TO BOOST CUBA'S HARDCURRENCY REVENUE WHICH HAS PLUNGED BECAUSE OF A WORSENING ECONOMIC CRISIS AND A DISASTROUS SUGAR HARVEST WITH THE DOLLARPRICE BOOST THE CUSTOMER DELUGE SLOWED TO A TRICKLE IN HARDCURRENCY STORES THAT SELL FOOD MEDICINES AND CONSUMER GOODS UNAVAILABLE IN STATE SHOPS OFFERING RATIONED PRODUCTS FOR CUBAN PESOS BELARUS PLANS THIS MONTH TO OUTLAW ALL FOREIGN CURRENCIES INCLUDING THE RUSSIAN RUBLE RUSSIA'S ITARTASS NEWS AGENCY SAID TO BOLSTER TEMPORARY BELARUSSIAN MONEY COUPONS KNOWN AS RABBITS THEY DEPICT ANIMALS WILL BE THE ONLY LEGAL TENDER THE MOVE FOLLOWS RUSSIA'S RECALL OF ALL PRE1993 RUBLE NOTES IN A BID TO MAKE THE FORMER SOVIET REPUBLICS EITHER ABANDON USE OF RUBLES OR ACCEPT MOSCOW'S MONETARY POLICY BELARUS PLANS TO SET UP EXCHANGE OFFICES FOR THE TRANSITION A RUBLE WILL TRADE FOR TWO COUPONS THE RUBLE MONDAY TRADED IN MOSCOW AT 985 TO THE US DOLLAR SETTLING A LAWSUIT AUSTRALIA AGREED TO PAY THE PACIFIC REPUBLIC OF NAURU 73 MILLION IN DAMAGES FOR ENVIRONMENTAL DESTRUCTION FROM PHOSPHATE MINING NAURU INDEPENDENT SINCE 1968 FILED SUIT FOUR YEARS AGO AGAINST AUSTRALIA ITS FORMER COLONIAL RULER IN THE INTERNATIONAL COURT OF JUSTICE ONE OF THE WORLD'S MOST REMOTE AND SMALLEST COUNTRIES WITH A POPULATION OF 9000 NAURU WILL USE THE SETTLEMENT MONEY TO HELP REHABILITATE THE EIGHTSQUAREMILE ISLAND ONCE GREEN AND LUSH BUT NOW DESOLATE AND ROCKY AS A RESULT OF MINING OF THE RICH PHOSPHATE DEPOSITS THE AVERAGE LIFE EXPECTANCIES OF JAPANESE MEN AND WOMEN REMAINED THE LONGEST IN THE WORLD LAST YEAR A HEALTH AND WELFARE MINISTRY SURVEY FOUND BUT LONGEVITY FOR JAPANESE MEN SHORTENED TO 7609 YEARS FROM 7611 IN 1991 WHILE THAT FOR JAPANESE WOMEN GREW TO 8222 YEARS FROM 8211 WIDENING THE MALEFEMALE MARGIN TO A RECORD 613 YEARS THE LIFE SPAN OF JAPANESE MEN HAS BEEN THE HIGHEST IN THE WORLD FOR SEVEN YEARS IN A ROW AND OF JAPANESE WOMEN FOR EIGHT CONSECUTIVE YEARS THE MINISTRY PREDICTED LONGEVITY WILL GRADUALLY INCREASE BECAUSE OF IMPROVEMENTS IN MEDICAL CARE AND DIETS THE SURVEY SAID 48 OF 622000 BOYS AND 69 OF 586000 GIRLS BORN LAST YEAR ARE EXPECTED TO LIVE UNTIL AGE 80MORE THAN DOUBLE THE AVERAGE 30 YEARS AGO IN WORLD RANKINGS FOR MEN ICELAND WAS SECOND WITH AN AVERAGE OF 7571 YEARS AND HONG KONG THIRD AT 749 YEARS FOR WOMEN FRANCE RANKED SECOND WITH 8094 YEARS AND HONG KONG THIRD WITH 805 YEARS 9308100052 930810 BUSINESS BRIEF KROGER CO EMPLOYEES STRIKE 11 STORES AFTER REJECTING NEW PACT ELEVEN KROGER CO STORES IN COLORADO AND WYOMING WERE STRUCK BY MEMBERS OF THE UNITED FOOD & COMMERCIAL WORKERS UNION A SPOKESMAN FOR THE UNION LOCAL SAID STRIKES BEGAN SATURDAY AFTER MEMBERS REJECTED KROGER'S CONTRACT PROPOSALS THE OLD THREEYEAR CONTRACT WHICH EXPIRED AUG 1 COVERED 1300 EMPLOYEES AT 12 OF KROGER'S 36STORE CITY MARKETS CHAIN AT ISSUE IS KROGER'S PROPOSAL FOR A TWOTIER WAGE SYSTEM UNDER WHICH EMPLOYEES HIRED AFTER AUG 1 WOULD EARN LESS AND HAVE FEWER BENEFITS THE UNION SPOKESMAN SAID MOREOVER SCHEDULING WOULD NO LONGER BE DONE ON THE BASIS OF SENIORITY AND NEW STORES WOULD BE NONUNION KROGER SAID THE STRUCK STORES REMAIN OPEN UNDER REDUCED HOURS AND SALES HAVE BEEN MINIMALLY AFFECTED KROGER CINCINNATI SAID SALES FROM THE STRUCK STORES REPRESENT LESS THAN 1 OF TOTAL SALES IT SAID THE STRIKE ISN'T EXPECTED TO MATERIALLY AFFECT OPERATING RESULTS 9308100051 930810 BUSINESS BRIEF PROMUS COS HARRAH'S UNIT TO DEVELOP INDIAN COMMUNITY'S CASINO PROMUS COS OF MEMPHIS TENN SAID ITS HARRAH'S CASINO DIVISION SIGNED AN AGREEMENT TO DEVELOP AND MANAGE A 247 MILLION CASINO FOR THE AKCHIN INDIAN COMMUNITY ABOUT 25 MILES SOUTH OF PHOENIX ARIZ THE PLANNED FACILITY WILL INCLUDE 29500 SQUARE FEET OF CASINO SPACE WITH 475 SLOT MACHINES BINGO KENO OFFTRACK BETTING AND 40 CLASS II TABLE GAMES SUCH AS POKER THE AKCHIN COMMUNITY SAID ITS CASINO COMPACT WITH THE STATE OF ARIZONA WAS APPROVED BY THE US DEPARTMENT OF THE INTERIOR AND A PROMUS SPOKESMAN SAID THE CASINO COULD OPEN BY LATE 1994 PENDING OTHER REGULATORY APPROVALS A PREVIOUS AGREEMENT WITH THE AKCHIN HAD FALLEN THROUGH IN THE FACE OF A POLITICAL BATTLE BETWEEN SEVERAL OF THE STATE'S TRIBES AND GOV FIFE SYMINGTON OVER TRIBAL GAMBLING THE STATE AND THE TRIBES SETTLED THEIR DIFFERENCES IN MAY 9308100050 930810 ANTITRUST RELIEF FOR HOSPITALS IS UNDER STUDY HILLARY CLINTON SEEKING SUPPORT FOR HEALTH PLAN OFFERS NEW GUIDELINES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL ORLANDO FLA HILLARY RODHAM CLINTON PROMISED HOSPITAL EXECUTIVES NEW GUIDELINES TO HELP HEALTHCARE PROVIDERS ENTER INTO JOINT VENTURES WITHOUT RUNNING AFOUL OF FEDERAL ANTITRUST LAWS ADDRESSING THE ANNUAL CONVENTION OF THE AMERICAN HOSPITAL ASSOCIATION MRS CLINTON SAID THE JUSTICE DEPARTMENT RIGHT NOW IS EXPLORING GUIDELINES FOR MERGERS NETWORKS JOINT VENTURES PURCHASING COOPERATIVES AND INFORMATION EXCHANGES SO THAT HOSPITALS DO NOT HAVE TO FILE HUNDREDS OF MORE FORMS AND WAIT YEARS AND YEARS TO SHARE A MAGNETIC RESONANCE IMAGER OR POOL ADVANCED ULTRASOUND EQUIPMENT OR DO SOME OF THE OTHER THINGS YOU WOULD LIKE TO DO TO BE OF BETTER SERVICE TO YOUR COMMUNITY THE PROMISE OF SOME ANTITRUST RELIEF WAS ONE OF SEVERAL OLIVE BRANCHES THE FIRST LADY EXTENDED TO THE HOSPITAL ADMINISTRATORS IN AN APPEAL FOR THEIR SUPPORT OF THE ADMINISTRATION'S PLAN TO OVERHAUL THE NATION'S HEALTHCARE SYSTEM PRESIDENT CLINTON HOPES TO UNVEIL THE PROPOSAL THIS FALL SPEAKING TO 4000 DELEGATES IN A HUGE CONVENTION HALL MRS CLINTON DIDN'T MENTION THAT THE PRESIDENT IS CONSIDERING TEMPORARY PRICE CONTROLS A NATIONAL HEALTHSPENDING BUDGET OR REGIONAL PURCHASING ALLIANCES TO NEGOTIATE WITH HOSPITALS DOCTORS AND INSURERS ON BEHALF OF EMPLOYERS ALL SERIOUS CONCERNS OF THE HOSPITAL ASSOCIATION RATHER MRS CLINTON WHO IS LEADING THE ADMINISTRATION'S HEALTHCARE EFFORTS PLEDGED TO GRANT HOSPITALS RELIEF FROM THE MORASS OF PAPERWORK AND GOVERNMENT REGULATION THEY HAVE COMPLAINED ABOUT HER OVERTURES APPEARED TO BE EFFECTIVE WE CAN'T AGREE WITH THE ADMINISTRATION ON EVERYTHING BUT WE ARE AWFULLY CLOSE SAID DICK DAVIDSON THE ASSOCIATION'S PRESIDENT AFTER THE SPEECH THE ANTITRUST GUIDELINES HE PREDICTED WOULD ENCOURAGE MORE HOSPITALS TO ENTER INTO COLLABORATION FROM TECHNOLOGY SHARING TO JOINT VENTURES TO PROVIDE COMMUNITY CARE NETWORKS SOME HOSPITALS ARE HESITANT TO DEVELOP COLLABORATIONS HE SAID IF YOU GET BROUGHT IN FOR ANTITRUST YOU CAN EXPERIENCE A COST OF UP TO 2 MILLION FIGHTING IT MRS CLINTON ALSO USED THE SPEECH TO LAY THE GROUNDWORK FOR SOME OF THE CONTROVERSIAL FINANCING DECISIONS THE PRESIDENT IS SET TO MAKE TO PAY FOR HIS PLAN TO GUARANTEE HEALTH COVERAGE TO ALL AMERICANS WE HAVE TO ELIMINATE THE ALLTOOPREVALENT STATE OF MIND THAT THERE IS A FREE LUNCH THAT THERE CAN BE A FREE RIDE THAT THERE IS SOMETHING FOR NOTHING SHE SAID MRS CLINTON AGAIN SAID THAT THE PRESIDENT WON'T PROPOSE A GOVERNMENTRUN FEDERALLY FINANCED SYSTEM OF NATIONAL HEALTH INSURANCE COMMONLY KNOWN AS A SINGLEPAYER SYSTEM SHE DEFENDED THE CONCEPT OF REQUIRING ALL EMPLOYERS TO CONTRIBUTE TO THE COST OF THEIR EMPLOYEES' HEALTH INSURANCE BUT DIDN'T SAY SPECIFICALLY THAT THE PRESIDENT PLANS TO PROPOSE SUCH A SYSTEM SHE POSED THE ISSUE AS ONE OF FAIRNESS SHE DETAILED THE PROBLEM OF COST SHIFTING WHEN HOSPITALS RAISE THE PRICE FOR TREATING PAYING PATIENTS TO COMPENSATE FOR LOSSES FROM TREATING PEOPLE WHO HAVE NO INSURANCE ESSENTIALLY SHE SAID THAT MEANS EMPLOYERS WHO PROVIDE HEALTH COVERAGE FOR THEIR WORKERS ARE PAYING FOR TREATING WORKERS WHOSE EMPLOYERS DON'T WHY SHOULD SOME EMPLOYERS ANY LONGER GET WHAT AMOUNTS TO A FREE RIDE MRS CLINTON ASKED AT SOME POINT AMERICA HAS TO BELIEVE WE'RE ALL IN THIS TOGETHER AT THE SAME TIME THE FIRST LADY MADE SOME EXPENSIVE PROMISES THERE WILL BE A NEW FEDERAL HOMECARE PROGRAM FOR DISABLED CITIZENS REGARDLESS OF INCOME SHE SAID SHE ALSO SAID THE WHITE HOUSE WANTS TO INCLUDE A PRESCRIPTIONDRUG BENEFIT IN THE HEALTH PACKAGE SHE CONTENDED THAT BOTH PROPOSALS WOULD ULTIMATELY SAVE MONEY BY KEEPING PEOPLE OUT OF HOSPITALS AND NURSING HOMES MRS CLINTON HIT ON A THEME THAT ADMINISTRATION OFFICIALS FROM THE PRESIDENT ON DOWN INTEND TO STRESS REPEATEDLY TO SELL THE HEALTHCARE PLAN IT WILL PROVIDE SECURITY FOR ALL AMERICANS NOT JUST INSURANCE FOR THOSE WHO DON'T HAVE IT HEALTHCARE REFORM IS NOT ANYMORE DRIVEN BY THE NEEDS OF THE UNINSURED IT IS DRIVEN BY THE FEARS AND INSECURITY OF THOSE WHO HAVE HEALTH INSURANCE MRS CLINTON SAID EVERY AMERICAN SHOULD HAVE THE SECURITY OF KNOWING THAT NO MATTER WHERE HE OR SHE WORKS NO MATTER WHETHER HE OR SHE HAS BEEN SICK NO MATTER WHERE HE OR SHE LIVES BECAUSE HE OR SHE IS AN AMERICAN HE OR SHE WILL BE ENTITLED TO A PACKAGE OF BENEFITS THAT WILL GUARANTEE HEALTH SECURITY SHE SAID 9308100049 930810 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD SUBARU OF AMERICA LAYS OFF 44 IN SALESMARKETING UNIT SUBARU OF AMERICA INC UNDER PRESSURE TO RESTORE PROFITABILITY NOTIFIED 44 WORKERS IN ITS SALES AND MARKETING DIVISION THAT THEY WERE PERMANENTLY LAID OFF THE CHERRY HILL NJ AUTO MAKER SAID ANOTHER 100 WORKERS HAVE AGREED TO LEAVE THE COMPANY THROUGH ATTRITION SUBARU A UNIT OF JAPAN'S FUJI HEAVY INDUSTRIES LTD ANNOUNCED LAST MONTH PLANS TO REDUCE ITS SALES AND MARKETING PAYROLLS THROUGH LAYOFFS AND ATTRITION BEFORE THE LAYOFFS SUBARU HAD A TOTAL OF 823 EMPLOYEES IN THE US BY CREATING A LEANER AND MORE FOCUSED ORGANIZATION OUR ULTIMATE GOAL IS TO PROVIDE BETTER SERVICE TO OUR DEALERS AND CUSTOMERS GEORGE T MULLER SUBARU PRESIDENT SAID IN A STATEMENT DEMAND FOR SUBARU'S VEHICLES IN THE US HAS BEEN MEAGER IN RECENT YEARS 9308100047 930810 FOREIGN EXCHANGE DOLLAR ENDS SLIGHTLY HIGHER IN TRADING THINNED BY VACATIONS FRENCH CUT RATE BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK WITH WORLDWIDE MARKETS THINNED BY THE VACATION SEASON THE DOLLAR ENDED SLIGHTLY HIGHER MONDAY AFTER A DAY OF TRADING WITHIN EXTREMELY SLIM RANGES IN EUROPE A SMALL INTERESTRATE CUT IN FRANCE SOFTENED THE FRANC AND CONTRIBUTED TO WEAKNESS IN SEVERAL OTHER CONTINENTAL CURRENCIES STERLING ENDED LOWER ON SENTIMENT THAT AN INTERESTRATE CUT IN BRITAIN WAS POSSIBLE SOON AND ON RUMORS THAT FRANCE PLANNED A MASSIVE SALE OF BONDS DENOMINATED IN BRITISH POUNDS AND IN JAPAN THE MUCHAWAITED FIRST PUBLIC STATEMENTS BY THE NEWLY APPOINTED FINANCE AND TRADE MINISTERS WERE JUDGED TOO TAME TO AFFECT THE VALUE OF THE YEN LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16975 MARKS UP SLIGHTLY FROM 16965 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10489 YEN UP FROM 10441 YEN STERLING WAS TRADING AT 14915 DOWN FROM 14990 ABOUT NOON TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10460 YEN AND AT 17002 MARKS WITH MOST JAPANESE PLAYERS OFF FOR A TRADITIONAL HOLIDAY MONDAY'S MARKET SAW LITTLE ACTION UNTIL EARLY EUROPEAN TRADING WHEN THE BANK OF FRANCE ANNOUNCED IT HAD SHAVED ITS OVERNIGHT RATE TO 975 FROM 10 THE CUT WAS SEEN AS AMONG THE FIRST OF MANY FORECAST FOR EUROPEAN NATIONS WITH RELATIVELY WEAK CURRENCIES NATIONS WHICH HAD BOOSTED RATES SUDDENLY LAST MONTH TO DEFEND AGAINST A WAVE OF SPECULATION THE FRENCH FRANC WEAKENED ON THE RATECUT NEWS AT LEAST PARTLY ON DISAPPOINTMENT THAT THE CUT WASN'T BIGGER OR ON A MORE SIGNIFICANT RATE TRADERS SAID HIGHER RATES GENERALLY MAKE A CURRENCY MORE ATTRACTIVE BY INCREASING THE RETURN ON DEPOSITS DENOMINATED IN THAT CURRENCY BUT MANY INVESTORS CRITICIZE EUROPEAN RATES AS SO HIGH THEY ARE SUFFOCATING THEIR COUNTRIES' ECONOMIES STRONG ECONOMIES ALSO TEND TO MAKE A CURRENCY MORE ATTRACTIVE BECAUSE THE HIGHER SPENDING THEY ENGENDER INCREASES DEMAND FOR A CURRENCY EUROPEAN COUNTRIES WHOSE CURRENCIES CAME UNDER ATTACK BY SPECULATORS LAST MONTH THUS FIND THEMSELVES IN A BIND IF THEY CUT RATES THE VALUE OF THEIR CURRENCIES MAY FALL BUT IF THEY FAIL TO CUT RATES THE VALUE OF THEIR CURRENCIES MAY FALL ANYWAY DENMARK FOR EXAMPLE HAS HELD FAST TO THE HIGH RATES IT ESTABLISHED AT THE END OF JULY BUT ITS CURRENCY HAS CONTINUED TO WEAKEN AND DECLINED FASTER THAN THE FRANC MONDAY MEANWHILE DOMESTIC DISSENT ON THE RATES IS BUILDING DANISH COMMERCIAL BANKS HAVE THREATENED TO ADD CURRENCY PREMIUMS TO THEIR BUSINESS LOANS IF OFFICIAL RATES AREN'T LOWERED SOON EUROPEAN COUNTRIES CAN'T AFFORD TO WAIT MUCH LONGER BEFORE LOWERING RATES SAID WIN THIN AN INTERNATIONAL ECONOMIST AT MCM CURRENCYWATCH IN NEW YORK BUT MOST OF THE EUROPEAN CENTRAL BANKS ARE PROCEEDING ON A VERY CAREFUL PATH IT'S VERY HARD TO GET OUT OF THE MINDSET OF DEFENDING THE VALUE OF YOUR CURRENCY THE MARK CLOSED AT 35085 FRANCS MONDAY COMPARED WITH 34928 FRANCS FRIDAY AND AT 40464 DANISH KRONER COMPARED WITH 40188 KRONER FRIDAY THE SPANISH PESETA AND ITALIAN LIRA ALSO WERE WEAKER AGAINST THE MARK MONDAY TRADERS SAID THEY WERE FOLLOWING THE FRANC LOWER 9308100046 930810 BUSINESS BRIEF INTERNATIONAL TECHNOLOGY CORP US INVESTIGATES CLAIMS SUBMITTED FOR CLEANUP WORK INTERNATIONAL TECHNOLOGY CORP SAID THE FEDERAL GOVERNMENT IS CONDUCTING CIVIL AND CRIMINAL INVESTIGATIONS INTO CLAIMS FOR PAYMENT SUBMITTED TO THE US ARMY CORPS OF ENGINEERS FOR HAZARDOUSWASTE CLEANUP WORK AT THE HELEN KRAMER SUPERFUND SITE IN GLOUCESTER NJ IN A JUNE 29 FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE TORRANCE CALIF COMPANY SAID IT RECEIVED AN ADMINISTRATIVE SUBPOENA IN EARLY MAY FROM THE OFFICE OF THE INSPECTOR GENERAL OF THE ENVIRONMENTAL PROTECTION AGENCY THE SUBPOENA SEEKS DOCUMENTS RELATING TO CLAIMS SUBMITTED BY A JOINT VENTURE BETWEEN INTERNATIONAL TECHNOLOGY AND A UNIT OF TRAFALGAR HOUSE PLC OF LONDON SINCE AUGUST 1992 THE FEDERAL DEFENSE CONTRACT AUDIT AGENCY HAS BEEN CONDUCTING AN AUDIT OF CERTAIN CLAIMS SUBMITTED BY THE JOINT VENTURE THE COMPANY SAID THE COMPANY ALSO SAID ONE OF ITS EMPLOYEES WHO PROVIDED PROCUREMENT SUPPORT FOR THE HELEN KRAMER PROJECT HAS BEEN SUBPOENAED TO APPEAR BEFORE A FEDERAL GRAND JURY IN PHILADELPHIA A SPOKESMAN FOR INTERNATIONAL TECHNOLOGY SAID THE COMPANY IS COOPERATING WITH THE GOVERNMENT'S INVESTIGATION 9308100045 930810 BUSINESS BRIEF EQUITABLE COS COMPANY IS FORMED TO ISSUE SECURITIZED MORTGAGE LOANS EQUITABLE COS NEW YORK FORMED A COMPANY TO ORIGINATE MULTIFAMILY AND COMMERCIAL MORTGAGE LOANS AND ISSUE SECURITIES BACKED BY THOSE LOANS EQUITABLE ANTICIPATES THAT THE COMPANY COLUMN FINANCIAL INC WILL ORIGINATE AND SECURITIZE AT LEAST 1 BILLION OF LOANS IN ITS FIRST YEAR EQUITABLE'S DONALDSON LUFKIN & JENRETTE BROKERAGE UNIT WILL SECURITIZE THE LOANS AND EQUITABLE REAL ESTATE INVESTMENT MANAGEMENT INC WILL SERVICE THE LOANS THE TYPICAL LOAN AMOUNT WILL BE 2 MILLION TO 7 MILLION WITH THE NEW COMPANY EQUITABLE HOPES TO TAP WHAT IT CONSIDERS A HUGE MARKET ALTHOUGH THE COMMERCIAL AND MULTIFAMILY LOAN MARKET EXCEEDS 1 TRILLION ONLY A TINY PORTION OF THE LOANS HAVE BEEN SECURITIZED 9308100044 930810 LEISURE & ARTS THE MOBILE GUIDE CROWD INVADES BUCKINGHAM PALACE QUEEN IN SCOTLAND BY PAUL LEVY LONDON LAST FRIDAY WAS PRESS DAY AT BUCKINGHAM PALACE PARKED ALL ALONG THE MALL WERE ENOUGH OUTSIDE BROADCAST TELEVISION UNITS TO COVER A MEDIUMSIZED WAR THE NEXT DAY SATURDAY THE QUEEN WAS OPENING ONE OF HER HOUSES TO THE PUBLIC FOR THE FIRST TIME TO PAY FOR REPAIRS TO THE FIRE DAMAGE TO ONE OF HER OTHER HOUSES WINDSOR CASTLE BUCKINGHAM PALACE IS NO VERSAILLES FOR ONE THING IT IS STILL INHABITED AND SOME OF THE VISITORS WERE HOPING TO CATCH AN INTIMATE GLIMPSE OF HER MAJESTY ONE SAID HE HAD A FANTASY OF SEEING HER IN HER HOUSECOAT AND FLUFFY SLIPPERS PUTTING DOWN HER DUST PAN AND BRUSH AND CROSSING ONE OF THE STATE ROOMS ON HER WAY TO MAKING HERSELF A MIDMORNING CUP OF TEA AN AMERICAN VISITOR WAS INDIGNANT AT THE ABSENCE OF THE QUEEN AFTER ALL MICKEY'S ALWAYS THERE WHEN WE GO TO DISNEYLAND WHEN YOU DO FINALLY GET THROUGH THE HYPERSECURITY ARRANGEMENTS WHICH ARE BETTER THAN THOSE AT ANY AIRPORT AND INCLUDE A COMPUTERIZED CLOAKROOM THAT PRINTS OUT A DESCRIPTION OF YOUR COAT AND BRIEFCASE ON YOUR CLOAKROOM CHECK YOU DO SENSE THAT THIS IS A LIVEIN DOMESTIC BUILDING VERY UNLIKE THE EXROYAL PALACE MUSEUMS OF REPUBLICAN EUROPE BUT THERE'S NO CHANCE OF SEEING THE ROYAL HOUSEWIFE AS ROYALTY BUFFS CAN TELL FROM THE FACT THAT THERE IS NO FLAG FLYING OVER BUCKINGHAM PALACE THE LADY OF THE HOUSE IS AWAY AT YET ANOTHER OF HER HOUSES BALMORAL IN SCOTLAND SHE WON'T BE COMING BACK UNTIL THE LAST OF THE VISITORS HAS DEPARTED THE SEETHROUGH PLASTIC GUARDS REMOVED FROM THE ORNATE GILDED STAIRCASES AND MOLDINGS AND THE TEMPORARY CARPETS ROLLED UP AND REPLACED BY THE ANTIQUE ONES THAT HAVE BEEN PLACED IN TEMPORARY STORAGE TO PREVENT THEM TAKING A TERRIBLE POUNDING IT IS THE CARPETS THAT JAR WORST OF ALL HASTILY ORDERED AND INSTALLED THEY ARE INDUSTRIAL GRADE BOARDINGHOUSE AXMINSTER IN PARTICULARLY LURID SHADES OF RED THAT SOMETHING WAS NECESSARY TO STAND IN FOR THE AUBUSSONS NO ONE CAN DOUBT BUT THERE ARE ACRES OF THEM AND THEY PLAY ESTHETIC HAVOC WITH MOST OF THE 18 ROOMS THAT ARE OPEN FOR THE PUBLIC TO SEE THEY DESTROY THE TONALITIES OF MANY OF THE ROOMS CLASHING HIDEOUSLY WITH THE PEACH WALLCOVERING OF THE PICTURE GALLERY MAKING THE THRONE ROOM GRUESOMELY KITSCH AND DESTROYING THE WHOLE POINT OF THE BEST STATE ROOM THE BLUE DRAWING ROOM WHERE THE ROUNDS OF THE ORIGINAL CARPET ECHO THOSE OF THE ELABORATELY WROUGHT CEILING ALL THE ROOMS ARE SO LARGE AND THE AREA OF CARPET SO GREAT THAT THERE IS NO WAY YOU CAN AVOID SEEING IT UNLESS YOU STAND ON YOUR HEAD AFTER YOU HAVE WAITED IN LINE IN THE MALL A SAFE AND PLEASANT ENVIRONMENT IN WHICH OVER 5000 CAN QUEUE SAYS THE PALACE'S BACKGROUND INFORMATION TO BUY YOUR TIMED TICKET WHICH BEARS YOUR NAME LIMIT FOUR ADULT TICKETS PER TRANSACTION TO PREVENT SURPLUSES FOR SCALPERS AND THEN RETURNED AT THE APPROPRIATE HOUR TO JOIN THE QUEUE FOR ADMISSION AND NEGOTIATED SECURITY YOU WILL GET A SURPRISE THE PALACE IS ACTUALLY A FINE GEORGIAN HONEYCOLORED STONE PILE BUILT AROUND A COURTYARD WHICH YOU WOULD NOT GUESS FROM THE EARLY 20THCENTURY EAST FRONT FACADE THAT MAKES IT LOOK LIKE AN UNUSUALLY LARGE BRANCH OF A BANK FIRST CALLED BUCKINGHAM HOUSE IT WAS BUILT BY THE 1ST DUKE OF BUCKINGHAM IN 170205 AND ONLY BOUGHT BY GEORGE III IN 1762 IN THE 1820S IT WAS ENORMOUSLY ENLARGED AND TURNED INTO A PALACE FOR GEORGE IV BY JOHN NASH UNTIL HE WAS DISMISSED AFTER THE KING'S DEATH IN 1830 FOR WHAT CHRISTOPHER LLOYD SURVEYOR OF THE QUEEN'S PICTURES TACTFULLY DESCRIBED TO ME AS BUDGET IRREGULARITIES NASH'S PUPIL EDWARD BLORE COMPLETED THE WORK IN THE REIGNS OF WILLIAM IV AND VICTORIA YOU PROCEED VIA THE AMBASSADORS' ENTRANCE INTO THE GRAND ENTRANCE AT THIS POINT IF YOU ARE INVITED TO ONE OF THE QUEEN'S SUMMER GARDEN PARTIES AT WHICH THOUSANDS OF LOCAL DIGNITARIES AND WORTHIES ARE GIVEN TEA AND CAKE IN HUGE TENTS YOU TURN RIGHT FOR THE GARDEN IF YOU ARE ABOUT TO BE INVESTED WITH AN HONOR BY THE QUEEN OR HAVE COME TO HAVE A FORMAL AUDIENCE OF HER OR ARE A SIGHTSEER LIKE ME YOU GO LEFT UP THE GRAND STAIRCASE AN INSTALLATION DEVISED BY QUEEN VICTORIA SHORTLY AFTER HER CORONATION IN 1838 OF PORTRAITS OF HER IMMEDIATE ANCESTORS AND RELATIONS ILLUSTRATING HER SUCCESSION SAYS THE OFFICIAL HANDLIST OF PICTURES AND WORKS OF ART NO ABSOLUTE ORIENTAL MONARCH COULD HAVE BEEN MORE SERIOUS ABOUT THE BUSINESS OF ANCESTOR WORSHIP AT THE TOP OF THE STAIRS IN THE GUARD ROOM IS A REPLICA OF AN EMIL WOLFF SCULPTURE OF PRINCE ALBERT DRESSED IN ROMAN COSTUME THE RAVISHING GREEN DRAWING ROOM WITH ITS GREEN SILK WALLS AND UPHOLSTERY IS NASH AT HIS NOBLEST AND RICHEST AND PREPARES YOU FOR THE GILT TO COME WHEN IN USE AS A WAITING ROOM FOR THOSE WHO HAVE A RENDEZVOUS WITH THE QUEEN IN THE THRONE ROOM IT MUST BE PERFECT FOR CALMING THE NERVES OF THOSE ABOUT TO BE KNIGHTED THE THRONE ROOM ITSELF GIVES THE GAME AWAY IT IS A SUBURBAN KITSCH DREAM OF A THRONE ROOM AT THE END OF WHICH IS A CANOPIED DAIS WITH HIS 'N HER THRONES ONE BEARING THE ROYAL CIPHER EIIR AND THE OTHER JUST A SINGLE P MADE IN 1953 THEY ARE SQUAT UPHOLSTERED IN SCARLET AND GILDED AND WOULD LOOK JUST RIGHT IN AN OVERFURNISHED FRONT ROOM IN A SEMIDETACHED HOUSE IN NORTH LONDON OR CINCINNATI ON EITHER SIDE OF THEM ARE THE 1937 CORONATION THRONE CHAIRS OF GEORGE VI AND THE QUEEN MOTHER THESE WOULD LOOK EVEN BETTER IN SOMEBODY ELSE'S LIVING ROOM I THINK WE ARE FORCED TO CONCLUDE THAT THE 20TH CENTURY WAS A POOR PERIOD FOR THRONES I DON'T SUPPOSE THAT ANYONE AT BUCK HOUSE AS IT IS CALLED BY ITS HABITUES FOR A PARTY OR ON AN OFFICIAL ERRAND EVER LOOKS UP A PITY FOR THE CEILINGS ARE THE FINEST FEATURE IN ALMOST EVERY ROOM THE AMOUNT OF GILDING ON THE MOLDED PLASTER IS ALMOST UNBELIEVABLE BUT OFTEN AS HERE IN THE THRONE ROOM IT IS ONLY THE LIGHT AND AIRY CEILING THAT KEEPS THE ROOM FROM BEING OPPRESSIVE THERE IS ANOTHER TREAT FOR THOSE WHO LOOK UP IN THE THRONE ROOM A TOTALLY MAD FRIEZE DESIGNED BY EH BAILY IN 1828 SUPPOSEDLY DEPICTING SCENES FROM THE WARS OF THE ROSES THE PLASTER IS SO THICK AND ROUNDED IN PLACES THAT IT LOOKS EDIBLE AS THOUGH MOLDED EITHER OF MARZIPAN OR OF ICING SUGAR PLUMP MEDIEVALISH MEN ON HORSEBACK CARRY CHUBBY JOUSTING LANCES A FALSE PERSPECTIVE IS GIVEN TO THE THRONE ROOM BY THE CROWD CONTROL ROPE BARRIERS AND PERHAPS IT MAKES THE ROOM SEEM LESS GRAND THAN WHEN IT IS IN USE HOWEVER WHEN EMPTY OF QUEEN AND COURTIERS THE THRONE ROOM SEEMS ALMOST INTIMATE EVEN COZY EXCEPT ONE WONDERS HOW DO THEY KEEP WARM NO RADIATORS ARE VISIBLE THOUGH THERE DOES SEEM TO BE RUDIMENTARY CENTRAL HEATING ONE VISITOR WAS SURE HE HAD SEEN A DISCREET HOTAIR VENT YET IN ALL THE DRAWING ROOMS THE PICTURE GALLERY AND IN THE STATE DINING ROOM NOW EXPOSED BECAUSE THE DINING TABLE HAS BEEN REMOVED YOU CAN QUITE CLEARLY SEE A WHOLE SERIES OF 1950S TWOBAR ELECTRIC FIRES SET INTO THE FIREPLACES A BIT NAFF REALLY SAID STEPHEN RUSSELL A 30YEAROLD DANCER WHO DOES A DRAG ACT AND HAD SPENT THE NIGHT QUEUING THE SAME ROPES MAKE VISITING THE PICTURE GALLERY A BORE YOU CAN'T GET CLOSE ENOUGH TO SEE PROPERLY THE GEM OF THE COLLECTION REMBRANDT'S NOLI ME TANGERE 1638 PANEL BECAUSE IT IS QUITE SMALL MOREOVER THE NUMBERS ACTUALLY ON THE PICTURE FRAMES DO NOT MATCH UP WITH THE NUMBERING SYSTEM USED IN THE HANDLIST GIVEN TO EVERY VISITOR WHICH MAKES IT A BIT DIFFICULT TO USE THE ABSOLUTELY ESSENTIAL DIAGRAMMATIC MAPS OF THE HANDLIST THAT TELL YOU WHAT UNLABELED PICTURE YOU ARE LOOKING AT CURIOUSLY THE PICTURES ARE GRADED IN THE HANDLIST WITH OUTSTANDING WORKS GIVEN A STAR AS IN A RESTAURANT GUIDE THUS WHILE ALL THREE REMBRANDTS RATE AN ASTERISK ONLY THREE OUT OF THE FOUR VAN DYCKS GET ONE IN ANY CASE THE PICTURE CERTAIN TO BE THE MOST POPULAR WITH THE TOURISTS IS NOT IN THE PICTURE GALLERY AT ALL BUT IN THE EAST GALLERY IT IS FRANCZ XAVER WINTERHALTER'S REPULSIVE THE FAMILY OF QUEEN VICTORIA 1846 A DISTRESSING GROUP PORTRAIT MORE STATIC THAN ANY PHOTOGRAPH BUT SO CHOCOLATEBOXY THAT ITS POPULAR APPEAL IS EVIDENT EVEN TO THE BUCKINGHAM PALACE PRESS OFFICE WHO HAVE INCLUDED A CLOSEUP OF IT AMONG THE 15 PHOTOGRAPHS THEY HAVE SUPPLIED TO THE WORLD PRESS AND WHICH ARE THE ONLY PICTURES ANYONE ANYWHERE IS ALLOWED TO REPRODUCE YOU EXIT THE PALACE THROUGH THE FAMOUS GARDEN IT COMES AS A SHOCK TO SEE THAT MOST OF IT APPEARS TO BE A SINGLE GIGANTIC LAWN AND THAT IT IS COMPLETELY OVERSHADOWED BY THE MODESTLY TALL BUILDINGS THAT PASS FOR SKYSCRAPERS HERE ON THE WAY OUT YOU PASS THE TEMPORARY LAVATORY ARRANGEMENTS WHICH ARE BOUND TO BE HOPELESSLY INADEQUATE THOUGH IT IS WELL KNOWN THAT THE QUEEN HERSELF EXPRESSED CONCERN ABOUT THE LOOS AND THE SOUVENIR SHOP IT IS THIS LAST THAT HAS ATTRACTED THE MOST ATTENTION FROM THE BRITISH PRESS THE DAILY MAIL WAS SO CROSS ABOUT WHAT THEY CONSIDERED WRONGLY I THINK TO BE THE POOR TASTE OF THE SPECIALLY COMMISSIONED JEWELLERY CHINA CUPS MUGS AND PILL BOXES AND GILDED WINEGLASSES THAT THEY RAN AN EDITORIAL CONDEMNING THE SOUVENIRS BUT NO REPORT ABOUT THE OPENING ITSELF THE SHOP TOOK 52000 ON SATURDAY AND EVEN MORE ON SUNDAY BUT ONE OF THE SUNDAY TABLOID PAPERS COMPLAINED THAT IN BEING OPEN THEN IT WAS VIOLATING BRITAIN'S ANTIQUATED SUNDAY SHOPPING LAWS FINALLY YOU ARRIVE BACK AT THE STREET QUITE NEAR THE DOOR TO THE QUEEN'S GALLERY AND ROYAL MEWS WITH ITS SUPERB COLLECTION OF SOME OF THE QUEEN'S 10000 PICTURES 20000 DRAWINGS 10000 WATERCOLORS AND 500000 PRINTS THE SERIOUS ART LOVER WOULD DO WELL TO VISIT IT INSTEAD OF THE PALACE THUS AVOIDING QUEUES CROWDS AND TICKET TOUTS WITH REDUCTION OF THE NUMBER TICKETS FOR SALE FROM 7000 OR 8000 TO 4500 THERE MAY WELL BE QUITE A FEW OF THE LATTER AS THE PALACE HAS SOLD 10 OF THE ORIGINALLY ALLOCATED 70008000 DAILY TICKETS AVAILABLE IN ADVANCE TO REGISTERED TOUR OPERATORS AND ADMITS THOUGH WITH RIGHT ROYAL DISDAIN FOR THE CONSEQUENCES THAT IT HAS NO CONTROL OVER WHAT HAPPENS TO THOSE HUNDREDS OF TICKETS SCALPERS ARE AT PRESENT OFFERING TICKETS AT 300 BUT THERE APPEAR TO BE NO TAKERS WHICH IS HARDLY SURPRISING WHEN MOTOKO WADA A JAPANESE AIR HOSTESS COMPLAINED ACCORDING TO MONDAY'S TIMES THAT EIGHT POUNDS 12 IS TOO MUCH THEY ARE OBVIOUSLY DOING THIS FOR THE MONEY BECAUSE THEY DON'T SEEM TO WANT YOU THERE 9308100043 930810 MARKETING BRIEF NEW LINE CINEMA CORP SECONDQUARTER PROFIT ROSE 41 ON 50 GAIN IN REVENUE NEW LINE CINEMA CORP NEW YORK REPORTED A 41 INCREASE IN SECONDQUARTER PROFIT ON A 50 RISE IN REVENUE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING THE COMPANY'S STOCK ROSE 875 CENTS TO 17125 THE MOVIE PRODUCER AND DISTRIBUTOR SAID NET INCOME ROSE TO 21 MILLION OR 12 CENTS A SHARE FROM THE YEAREARLIER 15 MILLION OR 11 CENTS A SHARE WITH MORE SHARES OUTSTANDING IN THE LATEST QUARTER REVENUE ROSE TO 886 MILLION FROM 589 MILLION THE COMPANY SAID RESULTS WERE AIDED BY REVENUES FROM THE FILMS TEENAGE MUTANT NINJA TURTLES III BACK IN TIME MENACE II SOCIETY AND WHO'S THE MAN WE EXPECT FURTHER GROWTH AS WE CONTINUALLY EVALUATE OUR OPPORTUNITIES AND THE MARKET FOR OUR PRODUCT SAID PRESIDENT MICHAEL LYNNE 9308100042 930810 BUSINESS BRIEF JWP INC INFORMATION SERVICES UNIT'S WORKERS COMPLETE BUYOUT MANAGEMENT AND EMPLOYEES OF JWP INC'S FORMER INFORMATION SERVICES DIVISION COMPLETED THEIR BUYOUT OF THE PERSONAL COMPUTER SYSTEMS INTEGRATION BUSINESS THE DIVISION RENAMED ENTEX INFORMATION SERVICES INC HAS ABOUT 12 BILLION IN ANNUAL REVENUE DORT A CAMERON III ITS PRINCIPAL INVESTOR WAS NAMED CHAIRMAN JOHN A MCKENNA JR FORMER SENIOR EXECUTIVE VICE PRESIDENT OF JWP INFORMATION SERVICES WAS NAMED PRESIDENT JWP HAS SAID THE SALE WOULDN'T RESULT IN A GAIN OR LOSS THE TECHNICAL SERVICES COMPANY WHICH ACQUIRED THE INFORMATION SERVICES OPERATION IN 1991 HAS BEEN STRUGGLING TO STREAMLINE IN THE FACE OF HEAVY LOSSES AND A SLUMP IN THE CONSTRUCTION INDUSTRY THE BUYOUT WILL RELIEVE THE RYE BROOK NY COMPANY OF ABOUT 210 MILLION OF DEBT OBLIGATIONS 9308100041 930810 BUSINESS BRIEF DEFIANCE INC FISCAL FOURTHQUARTER NET IS SEEN MORE THAN TRIPLING DEFIANCE INC CITING CONTINUED SALES INCREASES SAID IT EXPECTS TO REPORT PERSHARE EARNINGS FOR ITS FISCAL FOURTH QUARTER MORE THAN TRIPLED TO ABOUT 22 CENTS FROM SIX CENTS A YEAR EARLIER DEFIANCE WHICH MAKES PRODUCTS AND PROVIDES SERVICES FOR THE TRANSPORTATION INDUSTRY ALSO SAID IT HAD SALES OF ABOUT 23 MILLION IN THE QUARTER ENDED JUNE 30 COMPARED WITH 18 MILLION A YEAR EARLIER THE CLEVELAND COMPANY SAID IT EXPECTS EARNINGS FOR THE YEAR TO INCREASE TO ABOUT 54 CENTS A SHARE FROM 15 CENTS A SHARE ON A 14 SALES RISE TO ABOUT 79 MILLION FROM 696 MILLION 9308100040 930810 LEISURE & ARTS BUSINESS BOOKSHELF LOTS AND LOTS OF MONEY BY STANLEY W ANGRIST SURELY ONE OF THE FUNNIEST HIDDEN VIDEOS EVER WELL TO ME ANYWAY SHOWS AN INTERVIEWER RANDOMLY STOPPING PEOPLE ON THE STREET AND ASKING THEM TO ADD OR SUBTRACT FRACTIONS THAT LACK A COMMON DENOMINATOR SUCH AS 7/9 PLUS 3/5 THE REASONS GIVEN FOR NOT DOING IT RANGE FROM HERE COMES MY BUS TO IT'S IMPOSSIBLE AS INNUMERACY THE INABILITY TO UNDERSTAND BASIC MATHEMATICAL IDEAS INVOLVING NUMBERS OR LOGIC AS THEY APPLY TO EVERYDAY LIFE GROWS IT IS TURNING INTO A HANDICAP MORE SERIOUS THAN ILLITERACY IF YOU ARE AN INNUMERATE YOU CAN BE BULLIED INTIMIDATED OR SIMPLY SCARED OUT OF YOUR MIND BY STATEMENTS THAT INCLUDE FLAWED LOGIC OR AN INCORRECT USE OF ELEMENTARY MATHEMATICAL PRINCIPLES A K DEWDNEY'S LITTLE BOOK TWO HUNDRED PERCENT OF NOTHING WILEY 224 PAGES 1995 WAS WRITTEN TO CONVERT INNUMERATES AND ENTERTAIN THEM IN THE PROCESS WHY IS IT SO IMPORTANT THAT WE BE NUMERATE THE AUTHOR PROVIDES NUMEROUS ILLUSTRATIONS OF THE KINDS OF TRAPS THAT INNUMERATES WILL FALL INTO CONSIDER THE FOLLOWING STATISTIC RELEASED BY THE AMERICAN CANCER SOCIETY ACS IN JANUARY 1991 ACS ANNOUNCED THAT THE ODDS OF WOMEN GETTING BREAST CANCER HAD RISEN TO ONE IN NINE WOMEN ALL OVER NORTH AMERICA PANICKED THEY NEEDN'T HAVE ACS HAD DELIBERATELY DONE WHAT MATHEMATICIANS CALL DETEMPORIZING COMPRESSING A LIFETIME PROBABILITY INTO A SMALL TIME FRAME THE PROBABILITY THE ACS GAVE IS THE ODDS OF A WOMAN DYING FROM BREAST CANCER SOONER OR LATER OVER A 110YEAR LIFETIME BY WHICH TIME SOMETHING ELSE JUST MIGHT HAVE DONE YOU IN FOR A WOMAN UNDER 50 THE CHANCES ARE MORE LIKE 1 IN A 1000 A SPOKESWOMAN FOR ACS EXPLAINED THAT THE STATISTIC WAS MEANT TO BE A JOLT IF A NONPROFIT ORGANIZATION CAN PLAY SO FAST AND LOOSE WITH STATISTICS YOU CAN CONJURE UP WHAT SOME FORPROFIT ORGANIZATIONS DO SHILLING THEIR PRODUCTS NUMERATES WISHING TO MAKE PROUD USE OF NEW SKILLS WILL LIKE MATH MAGIC WILLIAM MORROW 352 PAGES 1595 BY SCOTT FLANSBURG AND VICTORIA HAY THEY TRY TO DISPEL MATH PHOBIA BY TEACHING READERS FLASHY PARTY TRICKS DETERMINING THE DAY OF BIRTH FROM THE DATE OF BIRTH AND MORE USEFUL HOW TO CALCULATE TIPS AND OTHER PERCENTAGES IN THEIR HEADS EVENTUALLY YOU WILL BE DOING SIMPLE ALGEBRA WITHOUT MAKING YOUR HEART STOP OR YOUR HAIR FALL OUT NEED TO GET THAT KID OFF YOUR PERSONAL PAYROLL BUY HER GEOFF MARTZ'S HOW TO SURVIVE WITHOUT YOUR PARENTS' MONEY MAKING IT FROM COLLEGE TO THE REAL WORLD VILLARD 174 PAGES 9 WITH QUOTES FROM RESUMES AND INTERVIEWS THAT SHOW HOW NOT TO APPLY FOR A JOB HERE'S AN EXAMPLE EXCELLENT MEMORY STRONG MATH APTITUDE EXCELLENT MEMORY EFFECTIVE MANAGEMENT SKILLS AND VERY GOOD AT MATH TYPOS IN RESUMES ARE BOUND TO BE ANOTHER SUREFIRE TURN OFF TO PROSPECTIVE EMPLOYERS WORK HISTORY PERFORMED BRAIN WAVE TESTS 18791981 IS AN AUTOMATIC CANDIDATE FOR THE WASTEBASKET EQUALLY HELPFUL MR MARTZ QUOTES FROM SUCCESSFUL RESUMES AND INTERVIEW TECHNIQUES HE ALSO ADVISES TURNING TO THE UNDERUTILIZED ALUMNI PRINTOUT BOOKS KEPT BY MANY COLLEGE PLACEMENT OFFICES MANY ALUMNI WILL TAKE PHONE CALLS AND HELP NEW ALUMS JUST BECAUSE THEY HAD THE GOOD SENSE TO GO TO THEIR SCHOOL BUT SUPPOSE YOUR CHILD IS NOT IN COLLEGE YET IS LOOKING FOR SOME WAY TO MAKE MONEY THIS SUMMER MAYBE YOU'D LIKE TO INVEST ON HIS OR HER BEHALF IN JOE LAMANCUSA'S KID CASH CREATIVE MONEYMAKING IDEAS TAB BOOKS 160 PAGES 995 THE 15YEAROLD AUTHOR PROVIDES 50 WAYS FOR KIDS 10 YEARS AND UP TO TURN A BUCK HE NOT ONLY GIVES THEM AN IDEA BUT PROVIDES THEM WITH COPY FOR AN ADVERTISING FLYER FOR EACH SCHEME THAT IS ALL BUT READY TO GO TO THE COPY SHOP YOUR KID CAN BE IN BUSINESS IN ABOUT AN HOUR ARRANGING PARTIES SAY FOR HER JUNIORS OR PAINTING HOUSE NUMBERS ON CURBS JOE DETAILS THE JOB DESCRIPTION THE QUALIFICATIONS REQUIRED SAFETY ASPECTS THE TARGET CUSTOMERS AND STARTUP COSTS IN THE MEANWHILE YOU COULD GO TO THE RACES EVEN THOUGH HENRY KUCK'S WINNER'S FILE MORROW 256 PAGES 22 SUGGESTS PICKING PROFITABLE STOCKS IS EASIER THAN PICKING WINNING NAGS THE AUTHOR LISTS 20 FACTORS HE CONSIDERS WHEN MAKING HIS SELECTIONS INCLUDED IN THESE ARE HOW MUCH TIME HAS ELAPSED BETWEEN THE HORSE'S EARLIER RACES TO THE TYPE OF SURFACE THE HORSE HAS PREFERRED IN THE PAST YOU ARE ALSO ENCOURAGED TO CHECK IF THE HORSE WORE BLINKERS THE LAST TIME HE WON AND WHETHER HE IS WEARING THEM TODAY BUT YOU'RE ALLERGIC TO HORSES HOW ABOUT A VACATION IN SOME NICE ISLANDS LIKE THE VANUATU FORMERLY CALLED THE NEW HEBRIDES STRETCHING ACROSS THE SOUTH PACIFIC 1400 MILES NORTHEAST OF AUSTRALIA WHY WOULD YOU WANT TO GO THERE TO CHECK UP ON YOUR BANK OR SECURITIES ACCOUNTS OF COURSE IN TAX HAVENS MCGRAWHILL 243 PAGES 2495 HOYT L BARBER WRITES THAT EVERYONE CAN HAVE A TAX HAVEN LEGALLY SHELTERING A BUSINESS OR INCOME FROM GOVERNMENT SCRUTINY AND PROTECTING INCOME FROM THE IRS MR BARBER INSISTS THAT EVERYTHING HE SUGGESTS IS PERFECTLY LEGAL HE EVEN LISTS THE TREASURY DEPARTMENT FORMS YOU MUST FILE WHEN YOU ADD OR REMOVE FUNDS FROM YOUR OFFSHORE ACCOUNT BUT HE ALSO EXPLAINS THE SECRECY LAWS APPLICABLE IN EACH OF THE TAX HAVENS HE DESCRIBES MOST OF THEM ARE PRETTY STRICT SO IF YOU ARE OPENING AN OFFSHORE ACCOUNT OR SETTING UP YOUR OWN BANK WHICH CAN BE DONE QUITE CHEAPLY IN SOME OF THESE PLACES BUT ARE TELLING THE US GOVERNMENT EVERYTHING YOU ARE DOING AS REQUIRED BY LAW THEN WHY BOTHER 9308100039 930810 BUSINESS BRIEF U S WEST INC IN SETTLEMENT OF SUIT STOCK WILL BE ISSUED AT DISCOUNT U S WEST INC ENGLEWOOD COLO ANNOUNCED PLANS TO ISSUE SHARES AT A SMALL DISCOUNT UNDER THE TERMS OF A SETTLEMENT IN A SHAREHOLDER LAWSUIT THE BABY BELL TELEPHONE COMPANY ESTIMATED THAT THE SETTLEMENT WHICH STILL NEEDS APPROVAL BY A FEDERAL COURT WOULD RESULT IN ISSUANCE OF NO MORE THAN 24 MILLION SHARES IN JUNE U S WEST HAD AN AVERAGE 4159 MILLION SHARES OUTSTANDING UNDER THE PACT PEOPLE WHO BOUGHT STOCK BETWEEN FEB 15 1990 AND MARCH 6 1992 CAN BUY ADDITIONAL SHARES AT A 3 DISCOUNT AND WITHOUT A BROKERAGE COMMISSION THE COMPANY SAID IT DIDN'T EXPECT TO ISSUE ANY OF THE SHARES UNTIL THE FIRST QUARTER OF 1994 IT WILL ISSUE THEM DIRECTLY RATHER THAN USING UNDERWRITERS THE SETTLEMENT COMES IN A 1991 CLASSACTION SUIT THAT ALLEGED THAT U S WEST MISLED INVESTORS BY NOT DISCLOSING TIMELY INFORMATION ABOUT A DECEMBER 1991 CHARGE OF 590 MILLION RICHARD MCCORMICK CHAIRMAN AND CHIEF EXECUTIVE OFFICER CONTESTED THE ALLEGATIONS AND SAID THE COMPANY SETTLED TO AVOID PROTRACTED LITIGATION I WANT TO STRESS WE HAVE DONE NOTHING WRONG 9308100038 930810 MARKETING BRIEF CAPITAL CITIES/ABC INC EXPANSION SA OF MEXICO BUSINESS PUBLISHER BOUGHT CAPITAL CITIES/ABC INC NEW YORK SAID IT ACQUIRED EXPANSION SA A LEADING BUSINESS PUBLISHING COMPANY IN MEXICO FROM THE POPELL FAMILY AND TWO OTHER COMPANY OFFICIALS TERMS WEREN'T DISCLOSED EXPANSION PUBLISHES THE BIWEEKLY BUSINESS MAGAZINE EXPANSION OBRAS A LEADING CONSTRUCTION MAGAZINE IDC A LEGAL AND TAX INFORMATION SERVICE AND TENDENCIAS/MEXICAN FORECAST AN ECONOMIC AND INVESTMENT RESEARCH SERVICE CAPITAL CITIES A BROADCASTING AND PUBLISHING COMPANY IN MEXICO PUBLISHES A HOME FURNISHINGS MAGAZINE AND AN INTERNATIONAL FASHION EDITION OF WOMEN'S WEAR DAILY LAST MONTH CAPITAL CITIES WAS IN A PARTNERSHIP WITH A MEXICAN FIRM BIDDING UNSUCCESSFULLY FOR A HUGE PACKAGE OF MEXICAN GOVERNMENTOWNED MEDIA COMPANIES INCLUDING TWO TELEVISION NETWORKS 9308100037 930810 BUSINESS BRIEF SAFECARD SERVICES INC JUDGE DISMISSES FIRM'S SUIT FILED AGAINST EXCHAIRMAN AN INSIDERTRADING SUIT FILED BY SAFECARD SERVICES INC CHEYENNE WYO AGAINST PETER HALMOS ITS FORMER CHAIRMAN WAS DISMISSED BY A FEDERAL JUDGE IN CHEYENNE LAST WEEK FOR IMPROPER VENUE SAFECARD OFFICIALS SAID FRIDAY'S RULING BY US CHIEF DISTRICT JUDGE ALAN JOHNSON WAS THE RESULT OF A LEGAL TECHNICALITY AND THEY VOWED TO REFILE THE SUIT IN ANOTHER STATE OR FEDERAL COURT SOON MR HALMOS HOWEVER SAID THE RULING DISCLOSED THE SUIT'S FRIVOLOUS NATURE THE RULING IS PART OF A FARFLUNG LEGAL BATTLE BETWEEN THE CREDIT CARD PROTECTION COMPANY AND MR HALMOS WHO FOUNDED THE COMPANY WITH HIS BROTHER IN 1969 SAFECARD WHICH OUSTED MR HALMOS IN DECEMBER 1992 FILED THE FEDERAL SUIT AGAINST HIM IN MAY ALLEGING INSIDER TRADING AND MISUSE OF CORPORATE ASSETS THREE OTHER SUITS ARE PENDING IN THE DISPUTE 9308100036 930810 INTERNATIONAL BRIEF CROSSHARBOUR TUNNEL CO RIGHTS ISSUE PLANNED TO FINANCE STAKE IN TUNNEL CROSSHARBOUR TUNNEL CO SAID IT PLANS TO RAISE 8304 MILLION HONG KONG DOLLARS US1071 MILLION WITH A RIGHTS ISSUE TO FEED ITS EQUITY PARTICIPATION IN THE BRITISH COLONY'S THIRD TUNNEL CROSSING THE HONG KONG COMPANY 25OWNED BY WHARF HOLDING LTD WILL LAUNCH THE RIGHTS ISSUE ON A 1FOR2 BASIS AT AN ISSUE PRICE OF HK13 EACH THE ISSUE PRICE IS AT A DISCOUNT OF ABOUT 35 TO THE STOCK'S CLOSING OF HK2010 MONDAY ON THE HONG KONG STOCK EXCHANGE CROSSHARBOUR TUNNEL WILL EARMARK THE PROCEEDS FROM THE RIGHTS ISSUE TO PARTLY FINANCE ITS 37 INTEREST IN THE WESTERN HARBOUR TUNNEL CO WHICH WILL BE GRANTED A 30YEAR FRANCHISE TO BUILD AND OPERATE A CROSSING UNDER VICTORIA HARBOR THAT WILL LINK HONG KONG ISLAND AND THE KOWLOON PENINSULA ITS TOTAL EQUITY COMMITMENT IN THE INFRASTRUCTURE A CORE PROJECT OF THE COLONY'S NEW AIRPORT AT CHEK LAP KOK AMOUNTS TO HK922 MILLION AND THE SHORTFALL WILL BE FUNDED BY INTERNAL RESOURCES 9308100035 930810 MARKETING BRIEF NOTED WHO'S NEWS LISA HENSON AS EXPECTED WAS NAMED PRESIDENT WORLDWIDE PRODUCTION AT SONY CORP'S COLUMBIA PICTURES UNIT SHE SUCCEEDS MICHAEL NATHANSON 37 WHO WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT OF COLUMBIA PICTURES MS HENSON 33 WHO HAS WORKED THE PAST 10 YEARS AT WARNER BROS AS A PRODUCTION EXECUTIVE IS THE DAUGHTER OF THE LATE JIM HENSON CREATOR OF THE MUPPETS 9308100034 930810 INTERNATIONAL BRIEF GKN PLC FIRM HAS PACT WITH KUWAIT WITH VALUE OF 7483 MILLION KUWAIT FINALIZED AN AGREEMENT TO BUY A NUMBER OF WARRIOR ARMORED VEHICLES FROM BRITISH AUTOMOTIVE DEFENSE AND INDUSTRIAL SERVICES GROUP GKN PLC ACCORDING TO THE BRITISH GOVERNMENT LAST WEEK GKN OFFICIALS SAID THEY WERE WAITING FINAL WORD ON THE CONTRACT VALUED AT ABOUT 500 MILLION 7483 MILLION THE WARRIORS FORM PART OF A MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN THE GOVERNMENTS OF BRITAIN AND KUWAIT IN AUGUST 1992 FOR THE SUPPLY OF DEFENSE EQUIPMENT THE KUWAIT GOVERNMENT DECLINED TO SPECIFY THE NUMBER OF THE ARMORED VEHICLES IT HAS ACQUIRED IN ITS LATEST MILITARY PURCHASE HOWEVER LAST WEEK ALEXANDER DALY HEAD OF GKN'S DEFENSEVEHICLE OPERATIONS SAID THE CONTRACT WOULD CALL ON GKN TO BUILD AT LEAST 200 WARRIORS AND 100 PIRANHA ARMORED VEHICLES 9308100033 930810 BUSINESS BRIEF PORTLAND GENERAL CO REGULATORS MAY GIVE UTILITY PERMISSION TO RECOVER COSTS PORTLAND GENERAL CORP SAID STATE UTILITY REGULATORS HAVE SAID THEY MAY ALLOW THE COMPANY TO RECOVER THE COSTS OF CLOSING ITS TROJAN NUCLEAR POWER PLANT IF IT CAN SHOW THAT SHUTTERING THE FACILITY WAS THE LEAST COSTLY OPTION FOR ITS CUSTOMERS THE COMPANY HAS BEEN SEEKING APPROVAL FROM THE OREGON UTILITY COMMISSION TO AMORTIZE THE PLANT'S BOOK VALUE TOGETHER WITH CLOSING COSTS OVER THE REMAINING PERIOD OF THE PLANT'S NUCLEAR LICENSE WHICH RUNS UNTIL 2011 THAT WOULD KEEP THE CLOSURE FROM HAVING ANY IMMEDIATE IMPACT ON THE COMPANY'S PROFIT THE COMMISSION'S RULING DOESN'T GUARANTEE THAT THE UTILITY WILL BE ALLOWED TO RECOVER THE COSTS HOWEVER ALL THE RULING DOES IS ESTABLISH THE LEGAL AND REGULATORY FRAMEWORK THAT WILL APPLY REGARDING A FINAL DECISION ON THE ISSUE AT THE COMPANY'S NEXT GENERAL RATE PROCEEDING WHICH IS ANTICIPATED BEFORE YEAR END PORTLAND GENERAL THROUGH ITS PORTLAND GENERAL ELECTRIC CO UNIT HOLDS A 675 STAKE IN TROJAN AND IS THE PLANT'S OPERATOR EUGENE ORE WATER AND ELECTRIC BOARD HOLDS 30 AND A UNIT OF PORTLANDBASED PACIFICORP OWNS THE REMAINING 25 9308100032 930810 BUSINESS BRIEF AMERICAN BARRICK RESOURCES CORP COURT ORDER SOUGHT TO GAIN US PATENTS FOR MINE UNIT AMERICAN BARRICK RESOURCES CORP SAID IT IS SEEKING A COURT ORDER TO REQUIRE THE US GOVERNMENT TO GRANT PATENTS FOR BARRICK'S GOLDSTRIKE MINE IN NEVADA BARRICK'S GOLDSTRIKE MINES SUBSIDIARY FILED THE LEGAL CHALLENGE AGAINST THE US DEPARTMENT OF THE INTERIOR ITS SECRETARY BRUCE BABBITT AND THE US BUREAU OF LAND MANAGEMENT THE THREE ARE UNLAWFULLY WITHHOLDING ISSUING THE PATENTS A BARRICK SPOKESMAN SAID THE TORONTO GOLD PRODUCER HAS COMPLIED WITH ALL STEPS REQUIRED TO RECEIVE THE PATENTS INCLUDING COMPLETING A MINERAL SURVEY IN FEBRUARY THE SPOKESMAN SAID AFTER THE SURVEY IS COMPLETED PATENTS ARE USUALLY ISSUED IN ABOUT 18 DAYS THE SPOKESMAN SAID THE CHALLENGE WAS FILED IN A NEVADA FEDERAL COURT BARRICK SAID IT HAS INVESTED ABOUT 1 BILLION IN THE GOLDSTRIKE MINE WHICH COVERS ABOUT 1800 ACRES OF LAND IN MARCH MR BABBITT SAID HE WOULD CLOSELY REVIEW BARRICK'S PATENT APPLICATION BEFORE I HAND OVER 10 BILLION IN PUBLIC PROPERTY FOR A PITTANCE 9308100031 930810 INTERNATIONAL BRIEF PETROFINA SA BELGIAN OIL GROUP'S PROFIT DROPPED 81 IN FIRST HALF BELGIAN OIL GROUP PETROFINA SA SAID FIRSTHALF NET INCOME FELL 81 TO 38 BILLION BELGIAN FRANCS 1057 MILLION DESPITE A CAPITAL GAIN OF 25 BILLION FRANCS FROM THE SALE OF BELGIAN REAL ESTATE AND US GAS PROPERTIES SALES CLIMBED 2 TO 2708 BILLION FRANCS FROM 2654 BILLION FRANCS PETROFINA SAID THE RESULTS REFLECT THE PERSISTENT DEPRESSION WHICH HAS AFFECTED ALL INDUSTRIAL SECTORS AND CHEMICALS IN PARTICULAR THE FIRST QUARTER WAS MARKED BY SLIM MARGINS IN REFINING AND PETROCHEMICALS A FOURWEEK STRIKE AT THE ANTWERP REFINERY AND OPERATING DIFFICULTIES AT US REFINERIES IT SAID REFINING MARGINS IMPROVED IN THE SECOND QUARTER BUT AN ANTICIPATED RECOVERY IN PETROCHEMICAL MARGINS FALTERED AND CRUDEOIL PRICES FELL THE COMPANY SAID PETROFINA SAID THE DECLINE IN INTEREST RATES AND RISE IN THE VALUE OF THE DOLLAR IN THE SECOND QUARTER GIVE REASON FOR HOPE OF A RECOVERY IF CONFIRMED AND REINFORCED IN COMING MONTHS 9308100030 930810 INTERNATIONAL BRIEF CHUGAI PHARMACEUTICAL CO DRUG MAKER POSTS 10 RISE IN FIRSTHALF PRETAX PROFIT CHUGAI PHARMACEUTICAL CO A MAJOR JAPANESE DRUG MAKER REPORTED THAT UNCONSOLIDATED PRETAX PROFIT ROSE 10 TO 637 BILLION YEN 609 MILLION IN THE FIRST HALF FROM 578 BILLION YEN A YEAR EARLIER THE TOKYOBASED COMPANY CITED STRONG SALES OF PRESCRIPTION DRUGS BUT SLUGGISHNESS IN THE OVERTHECOUNTER MARKET OVERALL SALES ROSE 64 TO 7318 BILLION YEN FROM 6876 BILLION YEN A SPOKESMAN SAID THE 41 BALLOONING OF NET INCOME WHICH ROSE TO 292 BILLION YEN FROM 209 BILLION YEN MOSTLY IS DUE TO THE DISAPPEARANCE OF EXTRAORDINARY LOSSES A YEAR EARLIER CHUGAI HAD AN EXTRAORDINARY LOSS OF 133 BILLION YEN DUE TO THE LIQUIDATION OF A US UNIT THE COMPANY REDUCED TO 151 BILLION YEN ITS FORECASTED REVENUE FOR THE FULL YEAR DOWN FROM 155 BILLION YEN A SPOKESMAN SAID WEAKNESS IN OVERTHECOUNTER OPERATIONS LIKELY WILL LEAD TO LOWER SALES BUT THE FAVORABLE MARKET FOR HIGHERMARGIN PRESCRIPTION DRUGS SHOULD ALLOW FOR THE MAINTENANCE OF PROFIT 9308100029 930810 BUSINESS BRIEF AMERICAN FILM TECHNOLOGIES INC BOARD CANCELS PLAN TO SELL CONTROL TO ROBERTSON GROUP AMERICAN FILM TECHNOLOGIES INC SAID ITS BOARD TERMINATED A LETTER OF INTENT TO SELL A CONTROLLING INTEREST IN THE COMPANY TO AN INVESTOR GROUP HEADED BY TELEVISION EVANGELIST PAT ROBERTSON AMERICAN FILM TECHNOLOGIES SAID IN LOS ANGELES THAT ITS BOARD TOOK THIS ACTION SO THAT MANAGEMENT COULD PURSUE CERTAIN OTHER ALTERNATIVES BUT DIDN'T ELABORATE NEGOTIATIONS HAD CONTINUED PAST THE ANTICIPATED JUNE 30 CLOSING DATE FOR THE TRANSACTION WHICH WAS FIRST ANNOUNCED IN MAY THE ROBERTSON GROUP HAD PROPOSED PAYING 47 MILLION FOR A CONTROLLING INTEREST IN THE SMALL COMPANY WHICH SPECIALIZES IN CARTOONING AND COLORIZING WORK DR ROBERTSON AND HIS SON TIM ROBERTSON CONTROL INTERNATIONAL FAMILY ENTERTAINMENT INC WHICH OWNS AND OPERATES THE FAMILY CHANNEL CABLE NETWORK A SPOKESMAN FOR INTERNATIONAL FAMILY DIDN'T HAVE ANY COMMENT ON THE ANNOUNCEMENT 9308100028 930810 SARA LEE NET ROSE 12 IN ITS 4TH PERIOD DESPITE WEAKNESS IN FOREIGN MARKETS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SARA LEE CORP'S FISCAL FOURTHQUARTER EARNINGS ROSE 12 ON A 13 INCREASE IN SALES DESPITE BEING HURT BY FEEBLE ECONOMIES IN THE INTERNATIONAL MARKETS WHERE THE COMPANY HAS FOCUSED ITS GROWTH STRATEGY THE MAKER OF FOOD AND APPAREL HAD NET INCOME OF 190 MILLION OR 38 CENTS A SHARE FOR THE PERIOD ENDED JULY 3 UP FROM 170 MILLION OR 34 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 385 BILLION FROM 34 BILLION THE LATEST QUARTER CONTAINED ONE MORE WEEK THAN THE 1992 PERIOD THROUGH A SERIES OF ACQUISITIONS SARA LEE HAS SIGNIFICANTLY BOOSTED ITS OVERSEAS PRESENCE IN RECENT YEARS PARTICULARLY IN WESTERN EUROPE NONFOOD ITEMS NOW REPRESENT SLIGHTLY MORE THAN HALF OF SARA LEE'S SALES AND EARNINGS BUT WITH THE ECONOMIES OF MANY EUROPEAN NATIONS NOW EITHER FLAT OR IN RECESSION AND CURRENCY FLUCTUATIONS BUFFETING OVERSEAS RESULTS THAT INTERNATIONAL GROWTH EFFORT HAS PUT PROFIT MARGINS UNDER PRESSURE OPERATING PROFIT AT SARA LEE'S BIG PERSONAL PRODUCTS SEGMENT DECLINED 43 IN THE LATEST PERIOD TO 144 MILLION DESPITE A 13 INCREASE IN SALES TO 154 BILLION THE MAKER OF SUCH WELLKNOWN APPAREL BRANDS AS L'EGGS PLAYTEX AND HANES SAID RESULTS IN THE LATEST QUARTER REFLECT STRONG KNIT PRODUCTS AND FOUNDATIONS OPERATIONS IN THE US OFFSET BY LOWER RESULTS IN WEAK EUROPEAN MARKETS PARTICULARLY FOR HOSIERY KNIT PRODUCT SALES EXCLUDING ACQUISITIONS ROSE 19 ON A VOLUME BASIS BUT SOFT MARKETS WORLDWIDE CAUSED A 4 DROP IN SHEER HOSIERY SHIPMENTS MARGINS THINNED AT SARA LEE'S PACKAGEDFOOD SECTOR WHERE OPERATING PROFIT ROSE 75 TO 159 MILLION ON A 20 SALES INCREASE TO 196 BILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SARA LEE SHARES CLOSED AT 2175 UP 375 CENTS FOR THE LATEST FISCAL YEAR SARA LEE HAD NET OF 704 MILLION OR 140 A SHARE DOWN FROM 7606 MILLION OR 154 A SHARE A YEAR EARLIER THE LATEST FISCAL YEAR HAD 53 WEEKS THE PREVIOUS YEAR'S RESULTS BENEFITED FROM A ONETIME PRETAX NET GAIN OF 222 MILLION OR 30 CENTS A SHARE 9308100027 930810 CORRECTION A REVIEW OF STEFAN KANFER'S THE LAST EMPIRE DE BEERS DIAMONDS AND THE WORLD FARRAR STRAUS GIROUX LAST THURSDAY QUESTIONS THE ABSENCE OF SOURCE MATERIALS THE FINISHED BOOK DOES IN FACT CONTAIN THE INFORMATION MISSING FROM THE GALLEY 9308100026 930810 PEPPERAND SALT BUT WE SEEM TO BE FORSAKING IT TAKING IT THAN MAKING IT IT JUST WASN'T MADE TO BIODEGRADE SO IT WENT TO THE DUMP AND STAYED AND STAYED 9308100025 930810 DIVIDENDS AVON PRODUCTS INC AVON PRODUCTS INC RAISED ITS QUARTERLY 125 TO 45 CENTS A SHARE FROM 40 CENTS PAYABLE SEPT 1 TO SHARES OF RECORD AUG 19 THE NEW YORK DIRECT MARKETER OF BEAUTY PRODUCTS SAID THE INCREASE REFLECTS ITS COMMITMENT TO PROVIDE ENHANCED RETURNS TO SHAREHOLDERS 9308100024 930810 WHO'S NEWS SULCUS COMPUTER CORP SULCUS COMPUTER CORP GREENSBURG PA DAVID H ADLER 48 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF COMPUTER SYSTEMS FOR THE REAL ESTATE HOSPITALITY AND LEGAL MARKETS FILLING A VACANCY MR ADLER AN INDUSTRIALIST IS CHIEF EXECUTIVE OFFICER OF A GROUP OF CLOSELY HELD COMPANIES 9308100023 930810 BUSINESS BRIEFS IDB COMMUNICATIONS GROUP INC'S INTERNATIONAL LONGDISTANCE TELEPHONE UNIT BEGAN SERVICE BETWEEN AZERBAIJAN AND THE US VIA A SATELLITE STATION DEP CORP LOS ANGELES ACQUIRED THE AGREE AND HALSA SHAMPOO AND CONDITIONER BRANDS FROM SC JOHNSON & SON INC RACINE WIS FOR 45 MILLION SUMMIT BANCORPORATION PURCHASED ABOUT 87 MILLION IN DEPOSITS AND CERTAIN ASSETS OF MARINE VIEW FEDERAL SAVINGS BANK MIDDLETOWN NJ FROM THE RESOLUTION TRUST CORPORATION MBIA INC HAS ESTABLISHED A SUBSIDIARY MBIA INVESTMENT MANAGEMENT CORP TO PROVIDE STATE AND LOCAL GOVERNMENTS WITH INVESTMENTMANAGEMENT SERVICES FOR THEIR MUNICIPAL BOND PROCEEDS 9308100022 930810 TECHNOLOGY MICROSOFT SUES STAC OVER PATENT DISPUTE SEEKS TO BLOCK SALES REDMOND WASH MICROSOFT CORP IS SEEKING TO BLOCK SALES OF A STAC ELECTRONICS DATA COMPRESSION PRODUCT USED TO INCREASE STORAGE CAPACITY OF VARIOUS COMPUTER OPERATING SYSTEMS INCLUDING MICROSOFT'S MICROSOFT THE SOFTWARE GIANT ALLEGES IN A LAWSUIT FILED IN FEDERAL COURT IN LOS ANGELES THAT A STAC DATA COMPRESSION PRODUCT INFRINGES ON MICROSOFT PATENTS IT SEEKS A PRELIMINARY INJUNCTION THAT WOULD BAN STAC FROM SELLING THE PRODUCT THE ACTION IS IN KEEPING WITH MICROSOFT'S FAMOUSLY AGGRESSIVE ASSAULTS ON RIVAL SOFTWARE MAKERS WHICH HAVE OFTEN PROVOKED OUTCRY FROM COMPETITORS AND HAS CAUGHT THE ATTENTION OF FEDERAL REGULATORS WHO HAVE BEEN LOOKING INTO THE SOFTWARE GIANT'S COMPETITIVE PRACTICES IT EXTENDS A LEGAL BATTLE THAT BEGAN IN JANUARY WHEN STAC SUED MICROSOFT ALLEGING THAT MICROSOFT HAD INFRINGED ON STAC PATENTS AT THE TIME MICROSOFT WAS DEVELOPING ITS OWN DATA COMPRESSION PRODUCT WHICH RECENTLY BECAME AVAILABLE DATA COMPRESSION IS A HOT AREA IN COMPUTING RIGHT NOW BECAUSE IT ALLOWS USERS TO SIGNIFICANTLY BOOST COMPUTER MEMORY AT RELATIVELY LOW COST GARY CLOW CHIEF EXECUTIVE OFFICER AND PRESIDENT OF STAC DENIED THAT STAC HAD INFRINGED ANY MICROSOFT PATENTS AND ACCUSED MICROSOFT OF TRYING TO MONOPOLIZE THE DATA COMPRESSION AND OTHER SOFTWARE APPLICATIONS BUSINESS THIS IS THE INDUSTRY'S WORST FEARS COMING TRUE MR CLOW SAID JOHN MASON A MICROSOFT ATTORNEY DECLINED TO COMMENT ON MR CLOW'S ACCUSATIONS HE SAID MICROSOFT FILED THE MOTION TO BAR SALES OF THE STAC PRODUCT BECAUSE OF STAC'S MISAPPROPRIATION OF OUR TRADE SECRET RIGHTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MICROSOFT CLOSED AT 73 A SHARE DOWN 25 CENTS STAC CLOSED AT 2375 A SHARE UNCHANGED 9308100021 930810 LAW LEGAL BEAT PROPOSALS ARE CONSIDERED TO EASE LIMITS ON TRIAL LAWYERS' SPEECH BY WADE LAMBERT AND KATIA HETTER STAFF REPORTERS OF THE WALL STREET JOURNAL PROPOSALS ARE BEING DEBATED THAT COULD MAKE IT EASIER FOR LAWYERS TO SPIN A CLIENT'S CAUSE TO THE PRESS WHILE A TRIAL IS IN PROGRESS UNDER CURRENT RULES A LAWYER WHO DISCUSSES MORE THAN THE BARE FACTS OF A CRIMINAL CASE RUNS THE RISK OF DISCIPLINARY ACTION OR EVEN JAIL TIME FOR CONTEMPT OF COURT THAT'S BECAUSE BARASSOCIATION AND COURT RULES GENERALLY REQUIRE LAWYERS TO REFRAIN FROM SAYING ANYTHING THAT HAS A REASONABLE OR SUBSTANTIAL LIKELIHOOD OF PREJUDICING A TRIAL THE PRIMARY INTENT OF THE RULES IS TO PROTECT JURIES AND WITNESSES FROM BEING EXPOSED TO INFORMATION THAT ISN'T PART OF THE COURT RECORD AND ISN'T SUBJECT TO CROSS EXAMINATION BUT DEFENSE LAWYERS FREQUENTLY COMPLAIN THAT THE RESTRICTIONS ARE SO AMORPHOUS THAT VIRTUALLY ANY COMMENT ABOUT TRIAL STRATEGY OR THE PARTIES INVOLVED CAN LAND AN ATTORNEY IN HOT WATER IT IS ALL IN THE EYE OF THE BEHOLDER SAYS GERALD LEFCOURT A NEW YORK DEFENSE ATTORNEY MOST OF THE TIME OF COURSE THE CURRENT RULES AREN'T ENFORCED WHICH EXPLAINS WHY COURTHOUSE STEPS FROM COAST TO COAST TEEM WITH LAWYERS GIVING IMPROMPTU NEWS CONFERENCES BUT OCCASIONALLY A LAWYER IS HELD IN CONTEMPT LEADING TO COMPLAINTS ABOUT ARBITRARY ENFORCEMENT AND FAVORITISM BY JUDGES ONE OFTEN DISCUSSED CASE IS THAT OF BRUCE CUTLER LAWYER FOR ALLEGED MOB BOSS JOHN GOTTI WHO WAS HELD IN CONTEMPT FOR COMMENTS THAT HE HAD MADE NOW EFFORTS ARE UNDER WAY TO EASE RESTRICTIONS ON SUCH REMARKS LARGELY BECAUSE OF A US SUPREME COURT RULING IN A 1991 NEVADA CASE THAT CAST DOUBT ON THEIR CONSTITUTIONALITY IN THAT CASE DEFENSE ATTORNEY DOMINIC GENTILE WAS PUNISHED FOR HOLDING A NEWS CONFERENCE TO SAY HIS CLIENT WAS INNOCENT THE SUPREME COURT RULED THAT WHILE STATES HAVE THE POWER TO RESTRICT LAWYERS' SPEECH THE WORDING OF NEVADA'S RULE WAS TOO VAGUE TO ENFORCE ALTHOUGH THE DECISION APPLIED ONLY TO THE NEVADA CASE THE RULE INVOLVED WAS NEARLY IDENTICAL TO THOSE IN MOST STATES SINCE THEN THE AMERICAN BAR ASSOCIATION AND SEVERAL STATE BAR GROUPS HAVE BEGUN DRAFTING NEW RULES ON TRIAL PUBLICITY SAID MONROE FREEDMAN A PROFESSOR OF LEGAL ETHICS AT HOFSTRA UNIVERSITY LAW SCHOOL WHO HAS WRITTEN ABOUT THE ISSUE AMONG THE MOST INFLUENTIAL GROUPS A COMMITTEE OF THE ASSOCIATION OF THE BAR OF THE CITY OF NEW YORK THIS SUMMER WEIGHED IN WITH PROPOSED CHANGES IN NEW YORK'S RULE TO CLARIFY JUST WHEN TRIAL LAWYERS MUST BE TIGHTLIPPED WITH THE PUBLIC CURRENTLY NEW YORK'S RULE BARS LAWYERS FROM PUBLICLY DISCUSSING A CRIMINAL TRIAL IF THERE IS A REASONABLE LIKELIHOOD THAT THE STATEMENT WILL INFLUENCE A TRIAL THE PROPOSAL OF THE NEW YORK BAR'S COMMITTEE ON PROFESSIONAL RESPONSIBILITY CALLS FOR REPLACING REASONABLE LIKELIHOOD WITH CLEAR AND PRESENT DANGER A LEGAL STANDARD LONG USED BY COURTS TO EVALUATE WHEN LIMITS CAN BE PLACED ON FREE SPEECH THE COMMITTEE ALSO PROPOSED SETTING A TIME FRAME FOR WHEN THE RESTRICTION APPLIESFROM 30 DAYS BEFORE TRIAL UNTIL A VERDICT IS REACHED COMPARED WITH THE OPENENDED CURRENT RULE THE COMMITTEE SAID IN ITS REPORT THAT THE RECOMMENDED CHANGES MIGHT WELL LEAD TO AN INCREASE IN WHAT SOME WOULD REGARD AS UNDIGNIFIED OR EVEN OBNOXIOUS SPEECH BUT IT SAID THE TRADEOFF WOULD BE A RULE THAT WOULD ENCOURAGE SILENCE ONLY WHEN SPEECH WOULD BE TRULY LIKELY TO HAVE AN IMPACT ON THE FAIRNESS OF A TRIAL TO BE IMPLEMENTED THE PROPOSAL MUST BE APPROVED BY A STATE APPELLATE COURT MICHAEL TIGAR A PROFESSOR AT THE UNIVERSITY OF TEXAS LAW SCHOOL WHO TOOK THE NEVADA ATTORNEY'S CASE TO THE SUPREME COURT PRAISED THE NEW YORK PROPOSAL WHICH IS SIMILAR TO THE STANDARDS ALREADY USED IN A FEW STATES ANY BAR ASSOCIATION THAT ADOPTS CLEAR AND PRESENT DANGER GOES A LONG WAY TOWARD RECTIFYING THE RISKS OF VAGUENESS AND OVERBREADTH THAT WORRIED THE SUPREME COURT PROF TIGAR SAID DIANE PARKER COAUTHOR OF THE COMMITTEE'S REPORT AND A PARTNER AT NEW YORK LAW FIRM MORVILLO ABRAMOWITZ GRAND IASON & SILVERBERG SAID THE PROPOSAL ALSO RECOGNIZES THAT THE RIGHTS OF LAWYERS TO SPEAK AND OF THE PUBLIC TO HEAR THEM ARE GOING TO EXPAND THAT'S BEEN THE TREND FOR MORE THAN A DECADE MOREOVER JUDGES CAN ISSUE NARROWLY FOCUSED GAG ORDERS TO RESTRICT LAWYERS' REMARKS IN HIGHLY PUBLICIZED TRIALS AS THE NEW YORK BAR COMMITTEE NOTED IN ITS REPORT THAT POWER ISN'T AFFECTED BY CHANGING THE BROADER ETHICS RULE HARVEY SILVERGLATE A DEFENSE ATTORNEY IN BOSTON SAID ANY RULE LIMITING ATTORNEYS' SPEECH DOES MORE TO BENEFIT PROSECUTORS THAN TO ENSURE A FAIR TRIAL THESE RULES ARE MEANT TO KEEP THE PUBLIC FROM LEARNING WHAT IS GOING ON HE SAID WHEN DEFENSE ATTORNEYS MAKE PUBLIC COMMENTS ABOUT A TRIAL HE ADDED WHAT YOU ARE TRYING TO DO IS EMBARRASS THE GOVERNMENT ABOUT SOME OF ITS TECHNIQUES TO EXPOSE WHAT THEY ARE DOING BUT NOT ALL DEFENSE ATTORNEYS FAVOR LOOSENING THE RULES INDEED SOME SAY THE SOLUTION IS TIGHTER ENFORCEMENT AGAINST LOOSE TALK BY BOTH PROSECUTORS AND THE DEFENSE A CLIENT'S RIGHT TO A FAIR TRIAL TRUMPS THE LAWYER'S RIGHT TO FREE SPEECH SAID PAUL CURRAN OF NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER IF THE GOVERNMENT IS VIOLATING THE RULES MR CURRAN SAID THE SOLUTION ISN'T TO LET DEFENSE ATTORNEYS SPEAK AS WELL INSTEAD HE SAID HAVE A PROSECUTOR PAY A FINE OR SIT IN JAIL FOR A COUPLE OF DAYS THE INTERNAL REVENUE SERVICE IS INVESTIGATING LAWYERS IN THREE STATES AS PART OF A BROAD CRACKDOWN ON PEOPLE WHO FAIL TO FILE TAX RETURNS IN RECENT WEEKS LAWYERS IN NEW YORK PENNSYLVANIA AND ILLINOIS HAVE BEEN RECEIVING ATTENTION FROM IRS OFFICIALS AS PART OF THE PROBE WHICH WAS FIRST REPORTED IN THE WASHINGTON POST A NUMBER OF LAWYERS IN NEW YORK CITY HAVE BEEN TOLD THEY ARE THE SUBJECT OF A CRIMINAL INVESTIGATION FOR FAILING TO FILE RETURNS IN PENNSYLVANIA THE IRS LATE LAST MONTH REQUESTED A COMPLETE LIST OF THE NAMES AND SOCIAL SECURITY NUMBERS OF THE 56000 MEMBERS OF THAT STATE'S BAR INCLUDING SITTING JUDGES THE ILLINOIS PROBE ALSO COVERS MEMBERS OF THE ACCOUNTING PROFESSION I HAVE NO DOUBT THAT THIS PROJECT IN NEW YORK WILL BE THE BEGINNING OF SIMILAR EFFORTS THAT WILL TAKE PLACE AROUND THE COUNTRY SAID GERALD A FEFFER A WASHINGTON LAWYER WHO SAYS HE IS REPRESENTING SEVERAL NEW YORK TARGETS OF THE INVESTIGATION HE ADDS THAT THE IRS IS MOVING VERY QUICKLY IN PUSHING THESE CASES THROUGH THE PIPELINE THE IRS STRESSED THAT IT ISN'T TARGETING ANY PARTICULAR GROUP IN THE NORMAL COURSE OF BUSINESS WE WILL UNCOVER EVIDENCE OF NONCOMPLIANCE IN A PARTICULAR INDUSTRY SAID FRANK KEITH A SPOKESMAN FOR THE IRS THAT'S OUR JOB THAT'S WHAT WE DO FOR INSTANCE HE SAID THAT IRS AUDITORS IN NEW ENGLAND ARE LOOKING CLOSELY AT ELECTED OFFICIALS IN THE MIDWEST THERE IS AN INQUIRY INTO COMMODITY TRADERS IN OTHER DISTRICTS THE SPOTLIGHT IS ON AIRLINE PILOTS FURRIERS AND VETERINARIANS NONETHELESS THE INVESTIGATION IS CREATING A STIR AMONG LAWYERS AROUND THE COUNTRY AND POSES SOME PRACTICAL PROBLEMS FOR FIRMS TOUCHED BY THE INQUIRIES UNDER IRS RULES FOR INSTANCE A LAW FIRM COULD BE BARRED FROM PRACTICING BEFORE THE COMMISSION IF A PARTNER IS FOUND TO HAVE INTENTIONALLY FAILED TO FILE RETURNS THIS IS NO LONGER SOME ABSTRACT ISSUE FOR THE LEGAL COMMUNITY SAID LARRY GIBBS A WASHINGTON ATTORNEY WHO SERVED AS IRS COMMISSIONER IN THE LATE 1980S A FORMER MERRILL LYNCH & CO TRADINGDESK ANALYST WAS CONVICTED OF DEFRAUDING THE FIRM OF AS MUCH AS 1 MILLION IN POTENTIAL PROFIT BUT THE FEDERAL JURY IN NEW YORK THAT HEARD THE CASE ACQUITTED A MERRILL CLIENT ACCUSED OF PARTICIPATING IN THE SCHEME THE SPLIT VERDICT CAME IN THE CASE OF TWO COLLEGE FRIENDS EDWARD L SCHERER WHO JOINED MERRILL AFTER WORKING AS A MERGERSANDACQUISITIONS LAWYER AT SKADDEN ARPS SLATE MEAGHER & FLOM AND ELLIS J STRELITZ WHO WORKED IN THE CORPORATE BOND DEPARTMENT AT LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO BEFORE HE JOINED HIS FAMILY'S FURNITURE BUSINESS IN VIRGINIA FEDERAL PROSECUTORS ALLEGED THAT THE TWO DEFRAUDED MERRILL IN A SCHEME THAT INVOLVED BUYING JUNK BONDS FROM MERRILL AT BELOWMARKET PRICES AND THEN RESELLING THEM TO MERRILL AT MARKET RATES A THIRD DEFENDANT FORMER MERRILL JUNKBOND TRADER RICHARD KURSMAN PLEADED GUILTY TO PARTICIPATING IN THE SCHEME AND TESTIFIED AGAINST MESSRS STRELITZ AND SCHERER DAVID O'CONNOR MR SCHERER'S ATTORNEY SAID HE PLANS TO ASK US DISTRICT JUDGE KEVIN DUFFY TO ACQUIT HIS CLIENT DESPITE THE JURY VERDICT MR O'CONNOR SAID THE ARGUMENT WILL BE THAT PROSECUTORS NEVER PROVED THAT THE PRICES PAID TO MERRILL LYNCH FOR THE BONDS WERE INDEED BELOW MARKET RATES MR STRELITZ'S ATTORNEY JOHN R WING SAID THE ACQUITTAL OF HIS CLIENT SHOWS THAT THE CASE WAS BASED ON A NOVEL UNTESTED APPLICATION OF FEDERAL FRAUD LAWS THE CASE SHOULDN'T HAVE BEEN BROUGHT IN THE FIRST PLACE MR WING ADDED MR STRELITZ HAD NO INTENTION TO HURT MERRILL LYNCH AND HE DIDN'T SCOTT A EDELMAN THE ASSISTANT US ATTORNEY HANDLING THE CASE SAID MR SCHERER IS SCHEDULED TO BE SENTENCED ON NOV 5 PROSECUTORS BEGAN THEIR CLOSING STATEMENTS IN THE MARATHON TRIAL OF ROBERT ALTMAN THE PROMINENT WASHINGTON ATTORNEY ACCUSED OF COMMITTING FRAUD ON BEHALF OF BANK OF CREDIT & COMMERCE INTERNATIONAL JOHN MOSCOW MANHATTAN ASSISTANT DISTRICT ATTORNEY SAID THE CASE BOILED DOWN TO WHETHER MR ALTMAN TOLD THE TRUTH ABOUT THE ALLEGED CONTROL THAT BCCI WOULD HAVE OVER FIRST AMERICAN BANKSHARES INC A WASHINGTONBASED BANK WITH MAJOR OPERATIONS IN NEW YORK STATE SIMPLY PUT MR MOSCOW TOLD THE JURY WAS HE HONEST OR DID HE CHEAT DID HE PLAY CLEVER WORD GAMES OR SPEAK THE TRUTH OF WHAT WAS ASKED OF HIM MR ALTMAN WHO WAS PRESIDENT OF FIRST AMERICAN IS CHARGED WITH ONE COUNT OF SCHEMING TO DEFRAUD AND THREE COUNTS OF FILING FALSE REPORTS WITH NEW YORK STATE BANKING REGULATORS PROSECUTORS ALLEGED THAT MR ALTMAN AND CLARK CLIFFORD A DEAN OF THE WASHINGTON LEGAL COMMUNITY AND FORMER CHAIRMAN OF FIRST AMERICAN KNEW THAT THE BCCI HOLDINGS LUXEMBOURG SA UNIT WOULD CONTROL FIRST AMERICAN BUT HID THAT FACT FROM REGULATORS BECAUSE HE HAS BEEN ILL MR CLIFFORD ISN'T STANDING TRIAL MR ALTMAN'S DEFENSE LAWYERS IN THEIR CLOSING STATEMENTS LAST WEEK SAID THEIR CLIENT TOLD REGULATORS EVERYTHING HE KNEW ABOUT BCCI'S INVOLVEMENT IF BCCI HAD A GREATER ROLE PERHAPS SECRETLY CONTROLLING THE STOCK OF FIRST AMERICAN'S INVESTORS THAN THAT FACT WAS HIDDEN FROM MR ALTMAN AS WELL THE LAWYERS SAID BUT MR MOSCOW ATTEMPTED TO UNDERMINE THAT THEORY USING HUGE CHARTS HE SHOWED FOR EXAMPLE THAT MR ALTMAN ROUTINELY CALLED BCCI OFFICIALS DURING HIS TIME RUNNING FIRST AMERICAN AND RARELY TALKED WITH THE ACTUAL SHAREHOLDERS OF THE WASHINGTON BANK JONATHAN MOSES AND RICHARD SCHMITT CONTRIBUTED TO THIS ARTICLE 9308100020 930810 CREDIT MARKETS YIELD ON 30YEAR BOND FALLS BELOW KEY LEVEL OF 65 ON BUDGET'S PASSAGE REFUNDING HOPES BY POMESH SAHI AND ABBY SCHULTZ SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE PASSAGE OF PRESIDENT CLINTON'S BUDGET PACKAGE AND HIGH HOPES FOR A STRONG AUCTION OF 30YEAR TREASURY BONDS ON THURSDAY HELPED PUSH YIELDS FOR THE LONGTERM BOND BELOW THE PSYCHOLOGICALLY IMPORTANT 65 LEVEL THE BENCHMARK 30YEAR TREASURY BOND YIELDED 646 BY DAY'S END THE LOWEST SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS YIELD ROSE 3/4 POINT OR 750 FOR A BOND WITH A 1000 FACE VALUE TO 108 19/32 OTHER TREASURY SECURITIES POSTED MODEST GAINS THE 10YEAR NOTE FOR EXAMPLE ROSE 1/4 POINT TO 103 7/32 ITS YIELD DROPPED TO 580 FROM 583 ON FRIDAY THE RALLY WAS ALSO DRIVEN BY SPECULATION THAT BRAZIL WAS BUYING US TREASURY STRIPS OR BONDS THAT HAVE BEEN MADE INTO ZEROCOUPON BONDS ZEROS ARE SOLD AT A DISCOUNT TO FACE VALUE PAY NO INTEREST AND ARE REDEEMED AT PAR VALUE A BRAZILIAN GOVERNMENT OFFICIAL DENIED THAT THE COUNTRY WAS BUYING TREASURY STRIPS BUT MARKET PARTICIPANTS SHRUGGED OFF THE DENIAL EVEN ARGENTINA DENIED THAT IT WAS BUYING TREASURY SECURITIES LAST YEAR WHEN IN FACT IT WAS MAKING THOSE PURCHASES SAID A TRADER AT A PRIMARY DEALERSHIP IN NEW YORK BRAZIL JUST LIKE ARGENTINA LAST YEAR NEEDS TREASURY SECURITIES AS COLLATERAL FOR THE ISSUANCE OF SOCALLED BRADY BONDS AS PART OF ITS EFFORTS TO RESTRUCTURE ITS DEBT BRADY BONDS ARE ISSUED UNDER DEBTRESTRUCTURING GUIDELINES ESTABLISHED BY FORMER TREASURY SECRETARY NICHOLAS BRADY BRAZILIAN OFFICIALS SAY THEY WILL ACQUIRE DIRECTLY FROM THE US TREASURY THE SECURITIES BRAZIL NEEDS FOR THE RESTRUCTURING BUT THE NEW YORK TRADER SAID THE TREASURY WILL PRESS BRAZIL TO BUY THOSE BONDS IN THE OPEN MARKET ALSO SPARKING THE RALLY WERE CONCERNS ABOUT A SHRINKING SUPPLY OF 30YEAR BONDS AFTER THURSDAY'S AUCTION OF 11 BILLION OF 30YEAR BONDS THE TREASURY DOESN'T PLAN TO ISSUE MORE 30YEAR SECURITIES UNTIL FEBRUARY AS IT SWITCHES TO SEMIANNUAL AUCTIONS FOR BONDS FROM QUARTERLY AUCTIONS IN WHENISSUED TRADING THE 30YEAR BOND TO BE SOLD THURSDAY YIELDED 639 DOWN FROM 646 ON FRIDAY THE 10YEAR NOTE TO BE SOLD TOMORROW YIELDED 576 DOWN FROM 580 WHILE THE THREEYEAR NOTE TO BE SOLD TODAY YIELDED 446 DOWN FROM 449 MARKET PLAYERS SAID THERE WERE PLENTY OF SHORT POSITIONS IN THE MARKET A PERCEPTION THAT IS REFLECTED IN FINANCING ACTIVITY THAT TOOK PLACE IN THE TREASURY MARKET IN A SHORT POSITION A TRADER SELLS A BORROWED SECURITY IN HOPES OF REPLACING IT LATER AT A LOWER PRICE AND POCKETING THE DIFFERENCE THOMAS PEARL MANAGING DIRECTOR OF THE FINANCING DESK AT CHEMICAL SECURITIES INC SAID THAT NOTES WITH MATURITIES RANGING FROM THREE TO 10 YEARS WERE ALL ON SPECIAL YESTERDAY WHICH INDICATED THAT THERE WERE SOME SHORT POSITIONS IN THOSE ISSUES ISSUES ON SPECIAL ARE SCARCE ENOUGH OR ENJOY KEEN ENOUGH DEMAND TO ELICIT CUTRATE LOANS FROM PARTICIPANTS NEEDING TEMPORARY USE OF THOSE SECURITIES MATTHEW ALEXY A FIXEDINCOME STRATEST AT FIRST BOSTON CORP SAID THAT THE SCARCITY FACTOR FOR 30YEAR BONDS COULD WELL CAUSE THE YIELD GAP BETWEEN THE 10YEAR NOTES AND THE 30YEAR BONDS TO COLLAPSE THAT SPREAD IS NOW 064 PERCENTAGE POINT SOME OF YESTERDAY'S BUYERS OF 30YEAR TREASURY BONDS WERE CATCHING THE FLATTENING OF THE YIELD CURVE THAT HAS TAKEN HOLD OF THE MARKET SINCE THE TREASURY ANNOUNCED IT WOULD BE CUTTING BACK ON THE AMOUNT OF 30YEAR BONDS ISSUED IN FAVOR OF MORE SHORTTERM INSTRUMENTS FLATTENING REFERS TO THE NARROWING OF THE YIELD SPREAD BETWEEN LONGTERM AND SHORTTERM SECURITIES THAT'S CAUSING INVESTORS TO BE MORE INTERESTED IN LONG BONDS SAID MICHAEL GRAY A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS MR GRAY EXPECTS INDIGESTION FROM TODAY'S SCHEDULED REFUNDING TO CAUSE PRICES TO SLIP TEMPORARILY BUT THAT OVER THE LONG TERM PRICES OF THE LONG BOND SHOULD FIRM AND YIELDS SHOULD DROP THERE ARE ENOUGH FUNDAMENTAL FACTORS IN THE MARKET TO SUGGEST YIELDS ARE GOING TO CONTINUE TO DECLINE MR GRAY SAID MARKET PARTICIPANTS WERE ALSO RELIEVED THAT CONGRESS FINALLY APPROVED A BUDGETDEFICIT REDUCTION PLAN LATE LAST WEEK ALTHOUGH SKEPTICISM REMAINS PARTICIPANTS SAY THAT EVEN THE PASSAGE OF THE PLAN BY THE NARROWEST OF MARGINS SUGGESTS THAT THE GOVERNMENT IS MAKING SOME ATTEMPT TO REIN IN THE DEFICIT TRADERS AND ECONOMISTS WERE EARLIER CONCERNED THAT A FAILURE TO APPROVE SOME KIND OF DEFICITREDUCTION PACKAGE WOULD CAUSE LONGTERM YIELDS TO SPIRAL HIGHER 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 COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED AUG 12 THE 13WEEK BILLS MATURE NOV 12 1993 AND THE 26WEEK BILLS MATURE FEB 10 1994 THE NARROW PASSAGE OF MR CLINTON'S BUDGETDEFICIT REDUCTION PACKAGE HAS BEEN GREETED BY A LOT OF GRUMBLING AND SKEPTICISM BUT THERE WERE NO SIGNS OF GLOOM IN THE MUNICIPAL BOND MARKET YESTERDAY AS A SPURT OF BUYING PROPELLED PRICES 3/8 TO 7/8 POINT HIGHER THAT'S BECAUSE HIGHER FEDERAL INCOME TAXES ARE NOW A REALITY RATHER THAN A POSSIBILITY AND WEALTHY INDIVIDUAL INVESTORS ARE EXPECTED TO SUBSTANTIALLY INCREASE THEIR HOLDINGS OF TAXEXEMPT SECURITIES TO SOFTEN THE STING OF THEIR BIGGER TAX BILLS MUNICIPALS ARE BECOMING MORE AND MORE ATTRACTIVE WITH THE TAX BRACKETS RISING SAID MICHAEL APPELBAUM A MUNICIPAL BOND SPECIALIST AT MERRILL LYNCH & CO WE SEE THE MUNICIPAL MARKET AS VERY VALUABLE HE ADDED THE BIGGEST GAINS WERE POSTED YESTERDAY BY ISSUES SUCH AS PHILADELPHIA'S 550 WATER AND WASTEWATER REVENUE BONDS OF 2015 AND THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 REVENUE REFUNDING BONDS OF 2017 THE PHILADELPHIA BONDS CLOSED 7/8 STRONGER AT 97 5/8 TO YIELD 567 AND THE WPPSS BONDS ALSO FINISHED 7/8 HIGHER AT 99 1/4 TO YIELD 575 WE'LL SEE A STRONG MARKET FOR THE FORESEEABLE FUTURE WHICH IS ROUGHLY THE NEXT THREE TO FOUR MONTHS SAID GREG HARRINGTON DIRECTOR OF RESEARCH AND TRADING AT THE FRANKLIN GROUP OF FUNDS IN SAN MATEO CALIF CURRENTLY UNDER MANAGEMENT AT FRANKLIN ARE MORE THAN 40 BILLION OF TAXEXEMPT SECURITIES MR HARRINGTON SAID ALL THE TALK ABOUT HIGHER TAXES IN RECENT MONTHS HAS CAUSED A STEADY INFLUX OF INVESTMENTS INTO THE MUNICIPAL FUNDS IN THE NEWISSUE SECTOR THERE WEREN'T MANY PRICINGS YESTERDAY HOWEVER THE ALREADY BRISK PACE OF ISSUANCE IS EXPECTED TO BECOME EVEN SWIFTER IF CONDITIONS REMAIN FAVORABLE IN THE CREDIT MARKETS COMPANIES CONTINUED TO IGNORE THE NEWISSUE MARKET DESPITE THE DECLINING YIELD OF THE 30YEAR TREASURY BOND ONLY 250 MILLION OF CORPORATE DEBT WAS ISSUED YESTERDAY BANKING CONCERN BANKAMERICA CORP PRICED 150 MILLION OF SUBORDINATED FLOATINGRATE NOTES WHILE FIRST HAWAIIAN INC ANOTHER BANKING COMPANY PRICED 100 MILLION OF SUBORDINATED NOTES TRADING IN THE INVESTMENTGRADE AND HIGHYIELD MARKETS WAS SLOW AS IS TYPICAL FOR A SUMMER MONDAY SPREADS ABOVE TREASURYS IN THE INVESTMENTGRADE MARKET WERE UNCHANGED AS PLAYERS WERE BUSY WATCHING THE RISE IN TREASURY PRICES TRADING IN THE HIGHYIELD MARKET WAS SUBDUED AS THE FOCUS REMAINS ON NEW ISSUES TRADERS SAID WHEN TRADING ACCELERATES PRICES ARE EXPECTED TO DROP AS THE NEW ISSUES ARE PRICED BANKAMERICA'S 150 MILLION OFFERING OF 10YEAR SUBORDINATED FLOATINGRATE NOTES PROVED TO BE THE LARGEST DEAL OF THE DAY THE NONCALLABLE NOTES WILL PAY A COUPON FLOATING QUARTERLY 005 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE WHICH IS CURRENTLY 407 HOWEVER THE NOTES ARE PRICED AT PAR AND INITIALLY WILL YIELD 420 THE FLOOR FOR THE COUPON RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WAS SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PRICES OF MORTGAGE SECURITIES ENDED HIGHER IN QUIET TRADING IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 SECURITIES ENDED 1/4 POINT HIGHER AT 99 24/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 65 ISSUES ADVANCED 6/32 TO 99 24/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 65 ISSUES FINISHED 6/32 HIGHER AT 99 20/32 INSTITUTIONAL INVESTORS WERE BIG BUYERS OF 65 SECURITIES SAID ONE TRADER THAT DEMAND WAS PARTLY DUE TO THE REINVESTMENT OF CASH BEING RECEIVED FROM RECENT EARLY PREPAYMENTS HE SAID ADDING THERE WAS ALSO SOME BUYING OF 7 ISSUES TO BACK REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERINGS IN THE PRIMARY MARKET FOR REMIC SECURITIES MEANTIME THERE WAS ONE NEW DEAL ALONG WITH SEVERAL INCREASES TO OUTSTANDING OFFERINGS FOR A TOTAL OF ABOUT 12 BILLION COLLATERAL WAS DIVERSE INCLUDING FANNIE MAE 15YEAR 65 MORTGAGE SECURITIES FANNIE MAE 30YEAR 8 ISSUES AND FREDDIE MAC GOLD 15YEAR 6 MORTGAGE SECURITIES 9308100019 930810 BUSINESS BRIEF FIRST INTERSTATE WILL SWAP 340 MILLION IN STOCK TO ACQUIRE SAN DIEGO FINANCIAL FIRST INTERSTATE BANCORP SAID IT AGREED TO ACQUIRE CLOSELY HELD SAN DIEGO FINANCIAL CORP FOR STOCK VALUED AT ABOUT 340 MILLION THE MOVE IS YET ANOTHER SIGN OF FIRST INTERSTATE'S IMPRESSIVE TURNAROUND JUST THREE YEARS AGO THE LOS ANGELES BANKING COMPANY REELING FROM DISASTROUS FORAYS INTO TEXAS AND ARIZONA ITSELF WAS CONSIDERED LIKELY TO BE ACQUIRED BUT THE COMPANY HAS SLASHED COSTS STEMMED LOAN LOSSES AND RUNG UP STRONG PROFITS LATELY FROM ITS POWERFUL CONSUMER BANKING OPERATIONS IN CALIFORNIA AND THE PACIFIC NORTHWEST TERMS OF THE TRANSACTION CALL FOR FIRST INTERSTATE TO ACQUIRE SAN DIEGO FINANCIAL BY SWAPPING 48 MILLION TO 59 MILLION COMMON SHARES DEPENDING ON FIRST INTERSTATE'S MARKET PRICE WHEN THE TRANSACTION CLOSES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FIRST INTERSTATE SHARES CLOSED AT 63 UP 25 CENTS THE DEAL VALUES SAN DIEGO FINANCIAL'S 449675 SHARES AT A WHOPPING 75614 EACH IT IS A BONANZA FOR HARLEY K SEFTON AND HIS FAMILY WHO TOGETHER OWN 52 OF THE BANK'S SHARES THEY WILL GET 176 MILLION IN STOCK FOR THEIR STAKE MR SEFTON WHOSE GREATGRANDFATHER FOUNDED THE BANK IN 1889 IS VICE CHAIRMAN AND EXECUTIVE VICE PRESIDENT OF SAN DIEGO FINANCIAL'S MAIN UNIT MR SEFTON SAID THE FAMILY DECIDED TO SELL AT LEAST IN PART BECAUSE OF CONCERNS ABOUT THE EFFECT OF TAX LAWS AS WE CONSIDER THE FUTURE OF MY FAMILY'S ESTATE HE ALSO CITED INCREASING REGULATION IN THE BANKING INDUSTRY WE TRANSFER THIS OWNERSHIP WITH A SENSE OF SADNESS MR SEFTON SAID BUT HE ADDED THAT THE SALE IS THE RIGHT THING TO DO AT THE RIGHT TIME AND FOR THE RIGHT REASONS SAN DIEGO FINANCIAL HAS ASSETS OF ABOUT 2 BILLION AND DEPOSITS OF ABOUT 18 BILLION IT HAS ABOUT 7 MARKET SHARE IN THE BUSTLING SAN DIEGO COUNTY AREA ONE OF THE FEW BRIGHT SPOTS IN SOUTHERN CALIFORNIA'S OTHERWISE DISMAL ECONOMIC PICTURE FIRST INTERSTATE WHICH HAS ASSETS OF 495 BILLION HAS HAD LITTLE PRESENCE IN THE SAN DIEGO MARKET THE MARKET IS DOMINATED BY ITS MAIN WEST COAST RIVALS BANKAMERICA CORP AND WELLS FARGO & CO A SPOKESMAN SAID THE TRANSACTION WILL GIVE FIRST INTERSTATE ABOUT 9 MARKET SHARE IN THE SAN DIEGO AREA COMPARED WITH BANKAMERICA'S 17 SHARE AND WELLS FARGO'S 13 9308100018 930810 INTERNATIONAL SOUTH KOREA'S CUTTING EDGE IS DULLED MANY BLAME OVERPROTECTIVE AUTOCRATIC BUREAUCRATS BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA ONLY SIX YEARS AGO SOUTH KOREA WAS HAILED AS THE NEXT JAPAN A MODEL OF HOW VISIONARY AUTOCRATS CAN SPIN A NEARFEUDAL ECONOMY INTO AN INDUSTRIAL POWERHOUSE NOW ITS EXPORT COMPETITIVENESS HAS DULLED AND THE NEXT WAVE OF ASIA'S EMERGING ECONOMIES FROM INDIA TO INDONESIA IS CATCHING UP MANY ECONOMISTS AND INDUSTRIALISTS BLAME THE CIVIL SERVANTS WHO NURTURED SOUTH KOREA'S ECONOMIC MIRACLE IN THE FIRST PLACE DAVID USSERY AMWAY CORP'S REPRESENTATIVE IN SOUTH KOREA ENCOUNTERED SOME OF THOSE CIVIL SERVANTS ON THE NIGHT OF JUNE 30 AT THE INTERCONTINENTAL HOTEL WHEN HE OPENED HIS APARTMENT DOOR HE WAS TAKEN INTO CUSTODY BY GOVERNMENT INVESTIGATORS MR USSERY WAS AMONG SEVEN REPRESENTATIVES OF AMWAY BASED IN ADA MICH AND SUNRIDER INTERNATIONAL BASED IN TORRANCE CALIF JAILED IN CONNECTION WITH ALLEGED PYRAMID SCHEMES BOTH COMPANIES OPERATE DOORTODOOR SELLING NETWORKS FOR HOUSEHOLD GOODS THE SEVEN MEN WEREN'T FORMALLY CHARGED AND THEIR LAWYERS WERE NEVER TOLD SPECIFICALLY WHICH LAWS THEIR CLIENTS ALLEGEDLY VIOLATED WITH A VISIT TO SOUTH KOREA BY PRESIDENT CLINTON ONLY A WEEK AWAY AT THE TIME US DIPLOMATS IMPLORED THE GOVERNMENT TO RELEASE THE BUSINESSMEN IN THE END SPECIAL PROSECUTOR KWAK YOUNG CHUL FREED THEM THOUGH THE INFORMAL CHARGES REMAIN MR KWAK ALLEGED THAT THE MEN HAD BEEN EXPLOITING THE COUNTRY'S CLOSEKNIT FILIAL CULTURE AND ERODING THE COUNTRY'S WORK ETHIC WHICH HE SAID COULD LEAD TO SERIOUS SOCIAL DISORDER MR KWAK'S ATTEMPTS TO PROTECT SOUTH KOREAN SOCIETY FROM FOREIGN INTERLOPERS IS A TRADITION AMONG CIVIL SERVANTS HERE THAT DATES BACK NEARLY 400 YEARS AND AN INDUSTRIAL POLICY THAT GOES BACK THREE DECADES THE POWER THAT KOREA INVESTED IN ITS BUREAUCRATS OVER THE CENTURIES HELPED FUEL ITS EXPLOSIVE DEVELOPMENT AFTER THE COUNTRY'S DEVASTATING CIVIL WAR IN THE 1950S NOW IT'S THROTTLING THE COUNTRY'S EVOLUTION TOWARDS FULL INDUSTRIALIZATION FOREIGN INVESTORS WHO SET UP OPERATIONS IN SOUTH KOREA IN THE LATE 1980S ARE MOVING OUT CITING THICKETS OF REGULATIONS THAT THEY SAY HAVE AN ANTIFOREIGN BIAS KEY REGULATIONS ARE OFTEN UNPUBLISHED AND SELECTIVELY ENFORCED TAX AUTHORITIES SINGLE OUT FOREIGN SUBSIDIARIES FOR AUDITS AND IMPORTS ARE DISCOURAGED BY AN ARRAY OF TARIFF AND NONTARIFF BARRIERS THE DECLINE IN FOREIGN INVESTMENT PARTICULARLY FROM COMPANIES INVOLVED IN SOPHISTICATED INDUSTRIES IS DEPRIVING SOUTH KOREA OF THE TECHNOLOGY IT NEEDS TO ENHANCE ITS INDUSTRIAL BASE THE GOOD NEWS IS THAT THE GOVERNMENT UNDER REFORMORIENTED PRESIDENT KIM YOUNG SAM THINKS IT HAS IDENTIFIED THE PROBLEM HIS ADMINISTRATION RECENTLY UNVEILED A FIVEYEAR REFORM PLAN DESIGNED IN PART TO OPEN SOUTH KOREA'S MARKETS TO FOREIGN COMPETITION WHILE ATTRACTING NEW INVESTMENT AND TO PULL ITS HUGE BUREAUCRACY OFF THE BACKS OF PRIVATE ENTERPRISE THE OLD FORMULA NO LONGER WORKS SAYS MINISTER OF FINANCE HONG JAE HYONG WE KNOW THAT AND NOW WE'RE CHANGING IT YET THERE ARE ONLY SO MANY OFFICIALS LIKE MR HONG TO GO AROUND FOR THREE DECADES THE GOVERNMENT LOCKED OUT IMPORTED PRODUCTS THAT COULD AT LEAST IN THEORY BE MADE LOCALLY TO ENFORCE SUCH A POLICY A SERIES OF AUTOCRATIC GOVERNMENTS ENDOWED THE CIVIL SERVICE WITH POWER TO MATCH THEIR SOCIAL STATUS THE ECONOMY FROM INTEREST RATES TO INDUSTRIAL POLICY IS MANAGED LARGELY BY CIVIL SERVANTS ACTING UNDER LAWS HANDED DOWN BY PAST AUTOCRATS AND PASSED BY THE THENPLIABLE LEGISLATURE BUT PRESIDENT KIM A FORMER DISSIDENT AND SOUTH KOREA'S FIRST CIVILIAN PRESIDENT IN 30 YEARS IS DISCOVERING THAT ENDURING THE AUTOCRATS WHO TORMENTED HIM WAS ONLY HALF THE BATTLE NOW HE HAS TO REFORM THE APPARATUS THEY LEFT BEHIND A BIG OBSTACLE IS A FEAR OF FOREIGN INFLUENCES ROOTED IN KOREA'S LONG HISTORY KOREA HAS OFTEN BEEN CAUGHT IN THE MILLENNIAOLD RIVALRY BETWEEN CHINA AND JAPAN IT HAS BEEN INVADED AT LEAST ONCE BY RUSSIA CHINA AND JAPAN AND EVEN HAD A BRUSH WITH US GUNBOAT DIPLOMACY IN 1871 WHILE THE NATION'S MYRIAD KINGS CAME AND WENT THE MANDARINS WHO ADVISED THEM WERE REVERED AS PILLARS OF STABILITY IN THE EARLY 1960S SOUTH KOREA ADOPTED THE JAPANESE SYSTEM FOR ECONOMIC DEVELOPMENT WHICH ALLOWS ITS CIVIL SERVANTS A MUCH GREATER ROLE IN POLICY IMPLEMENTATION THAN THEIR WESTERN COUNTERPARTS CHEONG DOA YOUNG A 20YEAR VETERAN OF THE MINISTRY OF HEALTH AND SOCIAL SERVICES WORKS ON THE FRONT LINE OF SOUTH KOREA'S DAILY ENCOUNTER WITH THE OUTSIDE WORLD FROM HIS CUBICLE AT THE GOVERNMENT'S MAIN OFFICE COMPLEX MR CHEONG SINGLEHANDEDLY PINNED DOWN A SHIPMENT OF SNICKERS AND SKITTLES CANDY AT PUSAN'S PORT FOR SIX WEEKS LAST SUMMER THE 250000 CARGO MADE BY MARS INC LACKED QUARANTINE CERTIFICATION THAT CONFORMED TO NEW INTERNAL GUIDELINES MARS WHICH HAS SOLD ITS GOODS IN SOUTH KOREA SINCE 1984 WAS UNAWARE OF THE NEW GUIDELINES BECAUSE THEY WERE NEVER MADE PUBLIC THE DISPUTE EVENTUALLY DRAGGED IN THENUS AMBASSADOR DONALD GREGG MR CHEONG SAID THAT IF HE INFORMED US OF THE REGULATIONS WE WOULD HAVE EVADED THEM SAYS MR GREGG WHO IS NOW CHAIRMAN OF THE KOREA SOCIETY IN NEW YORK THE CANDY WAS FINALLY SPRUNG BUT THE NEW GUIDELINES REMAIN A SECRET YOU CAN NEVER BE TOO CAREFUL MR CHEONG SAYS SOON AFTER THE SNICKERS/SKITTLES STANDOFF MR CHEONG WAS NAMED DIRECTOR OF THE HEALTH MINISTRY'S INTERNATIONAL COOPERATION DIVISION REGARDLESS OF ITS OUTCOME THE AMWAYSUNRIDER EPISODE IS EXPECTED TO FURTHER DAMP THE RATE OF DIRECT FOREIGN INVESTMENT IN SOUTH KOREA NEW FUNDS IN 1992 WERE VALUED AT 894 MILLION A DECLINE OF 36 FROM THE PREVIOUS YEAR MORE OMINOUSLY THE VALUE OF FUNDS REDEEMED FROM TERMINATED JOINT VENTURES GREW MORE THAN FIVE TIMES TO 369 MILLION FROM 69 MILLION MUCH OF THAT MONEY AND THE TECHNOLOGY BEHIND IT IS BEING TRANFERRED TO CHINA AND SOUTHEAST ASIA EVEN MULTINATIONALS WITH RELATIVELY HEALTHY VENTURES ARE REASSESSING THEIR POSITION IN SOUTH KOREA AT A POTENTIAL COST TO THEIR LOCAL PARTNERS TAKE THE ALLIANCE BETWEEN KIA MOTORS CORP AND FORD MOTOR CO THE RELATIONSHIP IS CONFINED TO A RECIPROCAL MARKETING PACT INVOLVING FORD'S SABLE AND KIA'S PRIDE SOLD IN THE US AS THE FESTIVA FORD WANTS TO EXPAND THE VENTURE TO INCLUDE DEALERSHIPS IN SOUTH KOREA SIMILAR TO THOSE IT HAS IN JAPAN THROUGH ITS VENTURE WITH MAZDA MOTOR CORP BUT KIA WHICH WOULD ENJOY ENHANCED ACCESS TO THE US MARKET THROUGH SUCH A NETWORK HAS YET TO SUBMIT THE IDEA FORMALLY TO THE MINISTRY OF FINANCE THAT'S BECAUSE KIA KNOWS WHAT THE ANSWER WOULD BE ACCORDING TO INDIVIDUALS AT THE FINANCE MINISTRY SOUTH KOREA'S CAR MARKET IS ONE OF THE MOST PROTECTED IN THE WORLD WITH FOREIGN VEHICLES ACCOUNTING FOR 02 OF SALES AND MINISTRY OFFICIALS ARE UNLIKELY TO APPROVE ANY VENTURE THAT WOULD ENCOURAGE IMPORTS KIA DECLINED TO COMMENT 9308100016 930810 AUTOS CADILLAC'S SEDAN DE VILLE SPURNS YOUTH BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL WHILE MOST LUXURYAUTO MAKERS ARE WOOING BABY BOOMERS WITH SLEEKLY DESIGNED HIGHTECH MACHINES CADILLAC IS OFFERING A NEW CAR WITH A DECIDEDLY GERIATRIC AGENDA THE 1994 SEDAN DE VILLE AIMED UNAPOLOGETICALLY AT WELLHEELED GRAYHAIRED CAR BUYERS THE NEW SEDAN DE VILLE SPORTS A MODEST MAKEOVER DESIGNED TO PRESERVE THE GENERAL MOTORS CORP LUXURY DIVISION'S MOST LOYAL AND LUCRATIVE CUSTOMER BASE THOUGH IT'S AERODYNAMICALLY SMOOTHER THAN LAST YEAR'S MODEL ONE OF THE 15 BESTSELLING CARS IN AMERICA THE NEW DE VILLE RETAINS MUCH OF ITS BIG AND BOXY CHARACTER WITH THE DE VILLE CADILLAC KEEPS ALL OF ITS EGGS IN THE SAME BASKET WHERE THEY HAVE BEEN FOR THE LAST 25 YEARS SAYS SUSAN G JACOBS AN AUTO INDUSTRY ANALYST WITH JACOBS & ASSOCIATES RUTHERFORD NJ IN FACT CADILLAC'S BOLDEST MOVE MAY HAVE BEEN ON THE DE VILLE'S PRICE TO KEEP ITS NEW DE VILLES UNDER 40000 CADILLAC IS CUTTING THE CAR'S DEALER DISCOUNT TO 14 FROM 19 ACCORDING TO AUTOMOTIVE NEWS A TRADE JOURNAL THAT CHANGE IS EXPECTED TO KEEP THE SEDAN DE VILLE'S BASE PRICE AT 32900 ALL THIS SUITS CADILLAC'S GENERAL MANAGER JOHN GRETTENBERGER JUST FINE HAVING LIVED THROUGH THE FRANCHISE'S BOTCHED EXPERIMENT WITH SELLING SMALLER CARS IN THE EARLY 1980S MR GRETTENBERGER SAYS HE WASN'T ABOUT TO TINKER MUCH WITH DE VILLE WITH GM'S NORTH AMERICAN OPERATIONS STRUGGLING TO GET BACK IN THE BLACK DE VILLE IN RECENT YEARS HAS ACCOUNTED FOR MORE THAN HALF OF CADILLAC'S ANNUAL SALES VOLUME AND A HEFTY SLICE OF PROFIT INDEED CADILLAC REMEMBERS ALL TOO WELL ITS MOST INFAMOUS EFFORT TO MOVE BEYOND ITS TRADITIONAL FRANCHISE THE CIMARRON A GLORIFIED CHEVROLET CAVALIER INTRODUCED IN 1981 THAT FAILED MISERABLY IN ITS MISSION TO ATTRACT IMPORT BUYERS TO THE CADILLAC NAME IF WE DO THAT AGAIN WE DESERVE TO LOSE OUR LEADERSHIP MR GRETTENBERGER SAYS SO WITH THE NEW DE VILLE CADILLAC LEAVES THE JOB OF ATTRACTING IMPORT BUYERS TO ITS SMALLER AND SPORTIER OFFERINGS ITS SEVILLE SEDANS AND ELDORADO COUPES THAT LEAVES THE DIVISION'S LARGER SEDANS THE DE VILLE AND THE EVEN LARGER REARWHEELDRIVE FLEETWOOD TO FOCUS ON OLDER PEOPLE WHO DEFINE LUXURY THE TRADITIONAL AMERICAN WAY BIG PLUSH AND WITH PLENTY OF ROOM IN THE TRUNK FOR GOLF BAGS CADILLAC IS TRYING TO HOLD AND CONQUEST SAYS JOHN J FERRON A SENIOR PARTNER AT JD POWER & ASSOCIATES AGOURA HILLS CALIF AND IN THIS LUXURY MARKET THAT IS AN AGGRESSIVE STRATEGY CADILLAC MUST HAVE A STRONG YEAR FROM THE NEW SEDAN DE VILLE IF IT HOPES TO REVERSE A THREEYEAR SALES TUMBLE CADILLAC SOLD 213524 CARS DURING THE 1992 MODEL YEAR DOWN 23 FROM THE 275600 CARS THE DIVISION SOLD IN 1989 WHEN IT ENJOYED A MODEST COMEBACK FROM ITS MID1980S MISSTEPS BUT SOME INDUSTRY ANALYSTS QUESTION WHETHER THE NEW SEDAN DE VILLE CAN REALLY TURN CADILLAC AROUND EVEN THOUGH CADILLAC EXPECTS TO BUILD 150000 TO 160000 OF THE SEDANS FOR THE 1994 MODEL YEAR OR AS MUCH AS 25 MORE THAN THE 127766 DE VILLES SOLD LAST YEAR I JUST THINK A LITTLE BIT MORE COULD HAVE BEEN DONE SAYS PHILIP K FRICKE AN AUTO INDUSTRY ANALYST WITH PRUDENTIAL SECURITIES INC IN NEW YORK THE BOTTOM LINE HE ADDS IS THAT THE REDESIGN WAS A DEFENSIVE MOVE CADILLAC SAYS IT ALREADY TOOK THE OFFENSIVE TWO YEARS AGO WHEN IT ROLLED OUT A FUNDAMENTALLY REDESIGNED SEVILLE SEDAN FOR THE FIRST TIME EVER CADILLAC FIELDED A CAR THAT COULD COMPETE SERIOUSLY WITH IMPORTS SLEEK AND LARGELY STRIPPED OF CHROME GEWGAWS THE SEVILLE WON PRAISE FROM CRITICS FOR ITS EUROPEAN STYLING MOREOVER THE RESTYLED SEDAN GAVE CADILLAC A LEGITIMATE SHOWCASE FOR ITS ENGINEERING GEM THE 295HORSEPOWER NORTHSTAR ENGINE A HIGHPERFORMANCE V8 ENGINE THAT FURTHER LEGITIMIZED CADILLAC'S ENTRY INTO THE LUXURY MARKET'S HIGHPERFORMANCE SEGMENT PEOPLE THAT BUY MERCEDES JAGUAR AND LEXUS THEY ARE NOW SHOPPING CADILLAC SAYS PETE KELLEY A SALES MANAGER WITH HENNESSY CADILLAC IN ATLANTA THAT'S A MAJOR ACCOMPLISHMENT BUT WITH THE DE VILLE LINE CADILLAC MADE ONLY SUBTLE CHANGES IN DEFERENCE TO AN OLDER MARKET THAT PREFERS SINATRA OVER HARRY CONNICK JR THE AUTO MAKER DROPPED THE OLD DE VILLE'S SILVER PUSHBUTTON DOOR HANDLES SWITCHING INSTEAD TO FLUSHMOUNTED ONES WHILE THE NEW LOOK IS MORE MODERN CADILLAC'S MAIN INTEREST WAS THERAPEUTIC THE OLD HANDLES WERE A LITTLE HARD ON ARTHRITIC FOLKS A CADILLAC SPOKESMAN SAYS CADILLAC WILL OFFER ITS NORTHSTAR ENGINE IN THE DE VILLE LINE BUT ONLY IN A LIMITED NUMBER OF DE VILLE CONCOURS MODELS THESE MODELS WILL COME WITH A 270HORSEPOWER VERSION OF THE NORTHSTAR V8 ENGINE AND APPOINTMENTS SUCH AS REAL WOOD INTERIORS IN A MODEST APPEAL TO SLIGHTLY YOUNGER AND AFFLUENT CUSTOMERS MOST CADILLAC DEALERS HAVEN'T SEEN THE NEW DE VILLE YET BUT ALREADY SOME ARE FRETTING THAT GM'S PRICING STRATEGY TO SQUEEZE DEALER PROFIT MARGINS WILL HAMPER THEIR ABILITY TO SELL THE NEW CAR AGAINST ITS TRADITIONAL RIVALS FORD MOTOR CO'S LINCOLN TOWN CAR AND CONTINENTAL SEDANS YOU ARE NOT GOING TO BE ABLE TO GIVE AS MUCH AWAY IN TRADEIN ALLOWANCES WITH THE SLIMMER PROFIT MARGIN SAYS CHUCK SCHOOLEY OWNER OF SCHOOLEY CADILLAC IN WEST PALM BEACH FLA MOREOVER CADILLAC FACES TOUGH COMPETITION ON PRICING AS MORE LUXURY AUTO MAKERS CONTINUE TO PUSH PRICES DOWN BY EITHER OFFERING CUTRATE LEASES OR CUTTING STICKER CHARGES WHEN MERCEDESBENZ INTRODUCES ITS CCLASS LINE OF CARS IN NOVEMBER CADILLAC DEALERS WILL BE COMPETING WITH CARS THAT BEAR THE PRESTIGIOUS MERCEDES BADGE BUT ARE PRICED AT 36000 TO 38000 THE ADVENT OF A COMPETITIVELY PRICED MERCEDES WHICH COULD APPEAL TO BOTH YOUNGER AND OLDER LUXURY CAR BUYERS REINFORCES DOUBTS ABOUT CADILLAC'S SHORTTERM APPROACH TO THE DE VILLE SOME ANALYSTS SAY THE DE VILLE DOESN'T ANSWER GM'S LONGTERM PROBLEMS WITH CADILLAC SAYS JOSEPH PHILLIPPI OF LEHMAN BROTHERS NEW YORK THIS IS THEIR LOWESTPRICED VEHICLE AND IT'S NOT GOING TO GET THE GUY WHO'S IN AN ACURA LEGEND INTO A CADILLAC 9308100014 930810 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 BANKAMERICA CORP 150 MILLION OF SUBORDINATED FLOATINGRATE NOTES DUE AUG 15 2003 PRICED INITIALLY AT PAR TO YIELD 42 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL PAY AND FLOAT QUARTERLY FIVE BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE THREEMONTH LIBOR IS CURRENTLY 407 THE NOTES HAVE A FLOOR OF 42 RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FIRST HAWAIIAN INC 100 MILLION OF SUBORDINATED NOTES DUE AUG 15 2000 PRICED AS 625S AT 99737 TO YIELD 6297 ACCORDING TO MCM CORPORATEWATCH THE NOTES WERE PRICED AT A SPREAD OF 875 BASIS POINTS ABOVE TREASURYS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SOUTHERN PACIFIC RAIL CORP 375 MILLION OF SENIOR NOTES DUE AUG 15 2005 PRICED AT PAR TO YIELD 9375 ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS RATED BA3 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO COLUMBIA BANKING 14 MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY KEMPER SECURITIES INC COTT CORP THREE MILLION COMMON SHARES PRICED AT 31 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO DAVCO RESTAURANTS INC INITIAL OFFERING OF 26 MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP SOUTHERN PACIFIC RAIL CORP INITIAL OFFERING OF 30 MILLION COMMON SHARES PRICED AT 1350 APIECE THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CROWN AMERICAN REALTY TRUST INITIAL OFFERING OF 245 MILLION COMMON SHARES PRICED AT 1725 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO THE INVESTMENT TRUST WAS FORMED TO ACQUIRE SHOPPING MALLS OWNED BY CROWN AMERICAN CORP A UNIT OF CLOSELY HELD CROWN HOLDING CO NEW YORK STATE DORMITORY AUTHORITY 4057 MILLION SERIES 1993B STATE UNIVERSITY EDUCATIONAL FACILITIES REVENUE REFUNDING BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 35 IN 1995 TO 575 IN 2019 THE INTERESTRATESENSITIVE OFFERING WAS RATED BAA1 BY MOODY'S AND S&P HAS ASSIGNED A TRIPLEBPLUS RATING FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 1993174 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 177 MONTHS ADERANS CO JAPAN 70 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE AUG 26 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0875 COUPON AT PAR VIA NIKKO BANK SWITZERLAND LTD EACH NOTE CARRIES 50 WARRANTS EXERCISABLE FROM SEPT 7 1993 TO AUG 19 1997 TO BUY COMPANY SHARES AT AN EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE ON THURSDAY WHEN TERMS WILL BE FIXED FEES 1625 POINTS CREDIOP OVERSEAS BANK CAYMAN ISLANDS LTD ITALIAN PARENT 10 BILLION YEN OF FLOATINGRATE EURONOTES DUE AUG 31 1998 AT ISSUE PRICE 1015 VIA NORMURA INTERNATIONAL PLC REOFFERED AT PAR WITH INTEREST FLOATING AT FOUR BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE GUARANTOR CREDIOP SPA FEES 175 POINTS INTEREST PAYABLE QUARTERLY DEUTSCHE FINANCE NETHERLANDS BV GERMAN PARENT ONE BILLION MARKS OF 6 EUROBONDS DUE SEPT 15 1997 AT ISSUE PRICE 10175 VIA DEUTSCHE BANK AG AT COMANAGERS' BREAKEVEN PRICE BONDS YIELD 6 A MARGIN OF 11 BASIS POINTS ABOVE COMPARABLE GERMAN BUND GUARANTOR DEUTSCHE BANK AG FEES 175 POINTS 9308100013 930810 BUSINESS BRIEF WR GRACE CLEARED TO DISTRIBUTE TUBES FOR KIDNEY DIALYSIS BOCA RATON FLA WR GRACE & CO RECEIVED FOOD AND DRUG ADMINISTRATION CLEARANCE TO DISTRIBUTE ABOUT 350000 EARLIERBANNED PLASTIC TUBES USED IN KIDNEY DIALYSIS THE DECISION ON THE TUBES WHICH REPRESENT PERHAPS A WEEK'S WORTH OF GRACE'S NORMAL DISTRIBUTION OF THE DISPOSABLE PRODUCT DOESN'T MEAN THE COMPANY'S DIFFICULTIES WITH THE AGENCY ARE OVER HOWEVER THE MOVE IS INSTEAD DESIGNED TO HELP PREVENT A SHORTAGE OF THE WIDELY USED PRODUCT THE FDA RECENTLY BANNED IMPORTATION OF THE TUBES CITING CONCERNS OVER MANUFACTURING PRACTICES AT THE GRACE FACILITY IN MEXICO WHICH MAKES THE TUBES THE CLEARANCE COVERS SHIPMENTS RECEIVED INTO THE US BUT HELD WHILE THE BAN WAS BEING IMPLEMENTED SAID A SPOKESMAN THERE HAVE BEEN NO REPORTS OF ADVERSE HEALTH EFFECTS FROM THE SOCALLED BLOOD LINES GRACE'S NATIONAL MEDICAL CARE INC UNIT THE NATION'S BIGGEST SUPPLIER OF DIALYSIS PRODUCTS AND SERVICES NORMALLY DISTRIBUTES IN EXCESS OF 15 MILLION BLOOD LINES MONTHLY SINCE THE FDA EMBARGOED THE PRODUCT IN EARLY SUMMER THE COMPANY HAS LARGELY SOLD ITS EXISTING INVENTORY OF THE PRODUCT IN ITS CONCERN OVER A POSSIBLE SHORTFALL OF THE PROSAIC BUT CRITICAL PRODUCT THE SPOKESMAN SAID THE COMPANY IN JULY PROVIDED CUSTOMERS WITH THE NAMES OF SIX ALTERNATIVE SUPPLIERS GRACE SAID ITS UNIT IS CONTINUING TO COOPERATE WITH THE FDA AND IS CONFIDENT THAT ITS COMPREHENSIVE PROGRAM TO ADDRESS FDA'S CONCERNS WILL RECONCILE ALL DIFFERENCES IT ALSO SAID PROGRESS HAS BEEN MADE ON AN AGREEMENT WITH THE FDA THAT WOULD ALLOW IT TO IMPORT AS MANY AS 400000 NEWLY MANUFACTURED BLOODLINES PER MONTH TO MEET PUBLIC HEALTH NEEDS WHILE IT CONTINUES TO WORK ON SATISFYING THE FDA'S CONCERNS GRACE DISCLOSED THE EMBARGO OF THE BLOOD LINES LAST WEEK AT THE SAME TIME IT REVEALED THAT THE FDA HAD BLOCKED IMPORTATION OF ANOTHER DIALYSIS PRODUCT THE BLOODCLEANSING DIALYZERS MADE AT A NATIONAL MEDICAL SITE IN DUBLIN THAT BAN REMAINS IN PLACE 9308100012 930810 WHO'S NEWS PACIFIC PHYSICIAN SERVICES INC PACIFIC PHYSICIAN SERVICES INC REDLANDS CALIF KARL A HARDESTY VICE PRESIDENT FINANCE WAS PROMOTED TO SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MANAGED HEALTHCARE CONCERN MR HARDESTY 38 YEARS OLD SUCCEEDS RONALD D LOSSETT 51 WHO CONTINUES AS EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER 9308100011 930810 FINANCING BUSINESS GENERAL PUBLIC UTILITIES CORP GENERAL PUBLIC UTILITIES CORP SAID IT PLANS TO SELL AS MANY AS FOUR MILLION COMMON SHARES WITH PROCEEDS TO FINANCE ANTICIPATED REDEMPTIONS OF HIGHDIVIDEND PREFERRED STOCK OF SUBSIDIARIES THE PARSIPPANY NJ UTILITY HOLDING COMPANY SAID THE SALE EXPECTED IN EARLY OCTOBER WOULD RAISE ABOUT 130 MILLION AT CURRENT PRICES GPU CURRENTLY HAS ABOUT 1109 MILLION SHARES OUTSTANDING 9308100010 930810 IN JAPAN THE TORCH HAS BEEN PASSED TO A NEW INGROUP RULING COALITION DOES THINGS WITH MORE YOUTHFUL FLAIR AND A DISTINCTLY NEW POSE BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO OILY SKIN IS OUT AND FASHION PLATES ARE IN IT IS SUDDENLY A NEW JAPAN ARRIVISTES HAVE INVADED THE HALLS OF GOVERNMENT AND THEY ARE PUTTING THEIR STAMP ON THINGS THE LIBERAL DEMOCRATIC PARTY WAS MIGHTY DULL BY THE TIME ITS FOURDECADE REIGN ENDED LAST WEEK SO IT IS HIGH TIME FOR AN IMAGE MAKEOVER IT MAY BE A BIT TOO SOON FOR A POLITICAL SEA CHANGE BUT YOU ALREADY CAN HEAR THE SOUND OF SYMBOLS CLASHING HERE IS A GUIDE TO THE NEW STYLE THE NEW PARLIAMENT NOW IN PLACE HAS MORE HAIR THAN ANY IN RECENT MEMORY THE MEAN AGE OF POLITICIANS IN THE LDP IS 57 IN THE JAPAN NEW PARTY PART OF THE NEW RULING COALITION YOUTH 42 IS MORE THE NORM TWO AGING LEADERS OF THE LDP JUST CHECKED OUT OF THE HOSPITAL THE RULING COALITION ON THE OTHER HAND NAMED AS PRIME MINISTER MORIHIRO HOSOKAWA WHO AT 55 IS STILL IN SHAPE TO SCHUSS DOWN SOME OF THE BEST SKI SLOPES IN JAPAN CALL IT A GENERATION GAP THE POINT MAN FOR THE OLD GUARD SEIROKU KAJIYAMA ATTENDED THE IMPERIAL AIR FORCE ACADEMY DURING WORLD WAR II SATSUKI EDA 52 A NEW CABINET MEMBER WAS ARRESTED IN 1962 FOR STORMING THE PRIME MINISTER'S OFFICE IN A STUDENT PROTEST IT IS A LITTLE LIKE BILL CLINTON TAKING OVER FROM GEORGE BUSH POLITICS IS ALL THE RAGE ON TALK SHOWS AND THE RATINGS ARE SOARING ONE NIGHT RECENTLY REGULARS AT A PUBLIC BATH HERE RUSHED OUT OF THE WATER CLUTCHING THEIR LITTLE TOWELS TO THEMSELVES TO CATCH THE POLITICAL NEWS ON TV UNHEARD OF THE TELEVISION DRAMA MARRIAGE DO YOU LOVE ME LAST WEEK DEPICTED THE HEARTBREAK OF A FICTIONAL CANDIDATE WHO LOST HIS ELECTION SPA A MAGAZINE FOR YOUNG PEOPLE DEVOTED SIX PAGES TO HOW TO TELL WHO'S REALLY A REFORMER ONE THING TO WATCH OUT FOR THE ARTICLE CLAIMED OILY SKIN CAUSED BY LIVING HIGH ON THE HOG THAT TOO IS PASSE OILYFACED PEOPLE DO BAD THINGS CAUTIONED THE MAGAZINE FURTHERMORE THOSE PEOPLE TEND TO HAVE OILY HAIR WITH NO PART JAPAN'S RAUNCHY SPORTS NEWSPAPERS KNOWN CHIEFLY FOR THEIR DIET OF BASEBALL SCORES AND SOFTCORE PORN ARE GETTING STRANGER STILL THE PUBLICATION TOKYO SPORTS THE OTHER DAY RAN THIS HEADLINE NEXT TO A WRESTLING REVIEW HOSOKAWA FAMILY HAS SECRET UFO DOCUMENTS THE FANCY RYOTEI RESTAURANTS WERE WHERE THE OLD GUARD CUT DEALS AND TOOK BRIBES SO YOUNG TURKS STRIKING A NEW POSE ARE HANGING OUT WITH THE SALARYMEN SHIGERU ISHIBA ONE OF THE NEW FACES IN THE LDP DID THAT ONE BETTER HE CALLED MEETINGS IN HIS OFFICE AND SERVED PRESSED RICE BALLS FROM A CONVENIENCE STORE UNTIL HIS ARREST ON CHARGES OF TAX EVASION EARLIER THIS YEAR LDP GODFATHER SHIN KANEMARU HAD HIS CHAUFFEUR FERRY HIM EVERYWHERE IN CONTRAST TAIZO SHIBANO A NEW MEMBER OF PARLIAMENT RODE HIS BIKE TO HIS FIRST SESSION OF PARLIAMENT LAST WEEK SUSUME YANASE 43 ANOTHER YOUNG MEMBER COMMUTES ON HIS MOPED LDP LEADERS ENJOY THE COMPANY OF THEIR OWN KIND BUT MR HOSOKAWA HAS A WIDER MORE ECLECTIC CIRCLE BILL CLINTON TAKE NOTE ONE NEWSPAPER'S LIST OF FOH OR FRIENDS OF HOSOKAWA INCLUDES PROMINENT PROFESSORS A MOUNTAINEER BUSINESS EXECUTIVES THE CHIEF PRIEST OF A FAMOUS TEMPLE FASHION DESIGNERS AND ACTORS MR HOSOKAWA HIMSELF HAS DABBLED IN ACTING AN 18TH GENERATION DESCENDANT OF FEUDAL LORDS HE PLAYED HIS ANCESTOR HOSOKAWA TSUNATOSHI IN THE 1981 MOVIE TETSUGEN HE IS EXLDP HIMSELF AS ARE MANY OF THE NEW JAPANESE LEADERS BUT IN MODERN GARB WOMEN NOW HOLD MORE CABINET POSTS THREE THAN EVER BEFORE TWO WAS THE OLD RECORD AND FOR THE FIRST TIME A WOMAN WAS NAMED SPEAKER OF THE LOWER HOUSE WHAT'S MORE POLITICAL WIVES TYPICALLY IN THE SHADOWS IN CONSERVATIVE JAPAN NOW ARE ENJOYING A BIT OF THE SPOTLIGHT ONE OF THE NEW REFORM GROUPS LAUNCHED ITS CRUSADE WITH WIVES ACTUALLY STANDING AT THE CEREMONY YASUKO HATA THE WIFE OF TSUTOMU HATA THE NEW FOREIGN MINISTER CAMPAIGNED FOR HER HUSBAND MAKING SPEECHES FOR HIM MOST UNUSUAL MR HOSOKAWA MET AND WOOED HIS WIFE MANY OLDLINE POLITICIANS TENDED TO MARRY WITH THE HELP OF MATCHMAKERS OFTEN PROPITIOUSLY MARRYING RELATIVES OF OTHER POLITICIANS OR POTENTIAL CONTRIBUTORS YURIKO KOIKE A NEWSCASTER TURNED NEW PARTY MEMBER OF PARLIAMENT WEARS DUDS STYLED BY DESIGNERS JUN ASHIDA AND HANAE MORI ON THE CAMPAIGN TRAIL MR HATA WORE AN UNUSUAL JACKET WITH HALFSLEEVES NOT EXACTLY HAUTE COUTURE BUT WEIRD NONETHELESS FOR A JAPANESE POLITICIAN IN PARLIAMENT HE SOMETIMES WEARS A BLUE SHIRT A DEPARTURE FROM LDP REGULATION WHITE RECENTLY OUSTED 73YEAROLD PRIME MINISTER KIICHI MIYAZAWA BUYS HIS SUITS AT GINZA TAILOR WHERE THE OLD POLS SHOP MEASUREMENTS ARE SAID TO BE KEPT ON FILE THERE FOR READY REFERENCE SHOULD A COMPANY WISHING TO CURRY FAVOR WANT TO CALL THE PLACE UP AND ORDER AN OLDSTYLE SUIT FOR AN OLDSTYLE POLITICIAN THE BESTSELLING NONFICTION BOOK FIVE WEEKS RUNNING BLUEPRINT FOR BUILDING A NEW JAPAN A CALL TO OVERHAULING EVERYTHING FROM FOREIGN POLICY TO LIFELONG EMPLOYMENT THE AUTHOR ICHIRO OZAWA AN EXLDP BOSS AND NOW THE MAJORDOMO BEHIND THE RULING COALITION IT HAS BEEN TWO DECADES SINCE A POWERFUL JAPANESE POLITICIAN WENT THAT ROUTE IN CONTRAST MR KANEMARU UNTIL LAST YEAR THE TOP POLITICAL BOSS IN JAPAN AND MR OZAWA'S MENTOR HAD AN ALTOGETHER DIFFERENT STYLE HE WROTE NO SUCH POPULAR EXHORTATIONS TO REFORM HE GOT HIS START AS SOMETHING OF A PARLIAMENTARY BOUNCER HE RARELY SPOKE IN PUBLIC WHEN HE WANTED LOWER INTEREST RATES HE MERELY THREATENED TO FIRE THE GOVERNOR OF THE CENTRAL BANK POLICY WAS WRITTEN IN SMOKEFILLED ROOMS SHIGEZO HAYASAKA A FORMER LDP AIDE WROTE RECENTLY THAT DURING ONE VOTE IN PARLIAMENT A PARTY OFFICIAL WHISPERED TO HIM THE NOCONFIDENCE VOTE WILL FAIL AT SUCH AND SUCH AN HOUR AT SUCH AND SUCH A MINUTE MR HAYASAKA PROFESSED TO BE SHOCKED IT'S NORMAL HE WAS TOLD THINGS ARE ARRANGED TODAY THERE IS DEBATE AND THAT MEANS DISAGREEMENT CONFRONTATION AND PUBLIC HUMILIATION TV ANCHOR PEOPLE ARE YELLING AT POLITICIANS YOUNG PARTY MEMBERS ARE YELLING AT OLDER ONES OPPOSITION AND RULING PARTY POLITICIANS ARE YELLING AT ONE ANOTHER LDP MEMBER SEIICHI OHTA TOOK THE MICROPHONE AT A TELEVISED MEETING LAST MONTH GLARED AT THE PARTY BOSSES AND CALLED THEM WAR CRIMINALS THE OLD GUARD WAS STUNNED THE PUBLIC ATE IT UP 9308100009 930810 FORSTMANN LITTLE'S HUGE LBO SUCCESSES PAINT A SLIGHTLY UNCOMPLETED' PICTURE BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL YOU HAVE TO GIVE THEODORE FORSTMANN CREDIT FOR HIS MANY WARNINGS ABOUT THE DANGERS OF JUNK BONDS AND THE OVERLEVERAGED BUYOUTS OF THE 1980S THAT'S ONE REASON PEOPLE HAVE SO READILY ACCEPTED HIS CLAIMS OF HEROIC RETURNS ON THE LEVERAGED BUYOUTS ENGINEERED BY HIS FIRM FORSTMANN LITTLE & CO THROUGH JULY 29 FOR EXAMPLE FORSTMANN REPORTS THAT ITS 14 COMPLETED BUYOUTS HAVE DURING THE PAST DECADE GENERATED STAGGERING COMPOUND ANNUAL RETURN RATES OF 113 ON EQUITY AND 31 ON DEBT AFTER FEES AND COUNTING EQUITY STAKES TIED TO THE DEBT HOWEVER THOSE NUMBERS DON'T TELL THE WHOLE STORY AND MAY WELL OVERSTATE THE FIRM'S INVESTING PROWESS THAT'S BECAUSE THEY DON'T COUNT TWO OF MR FORSTMANN'S DEALS THAT HAVE DEVELOPED PROBLEMS AND A THIRD THAT IS SHOWING SIGNS OF STRESS IN A LETTER DATED APRIL 30 LEAR SIEGLER HOLDINGS CORP WARNED THAT UNLESS ITS REMAINING SAFELITE GLASS CARWINDSHIELD REPLACEMENT BUSINESS PERFORMS AT THE HIGH END OF MANAGEMENT'S EXPECTATIONS THE CURRENT STOCKHOLDERS WHO ARE BEING SUBSTANTIALLY DILUTED BY THE RECAPITALIZATION WILL NOT RECOUP THEIR INVESTMENT FORSTMANN LITTLE'S PERFORMANCE MAY NOT BE HURT BY LEAR SIEGLER AS MUCH AS KOHLBERG KRAVIS ROBERTS & CO ITS LONGTIME BUYOUT RIVAL HAS BEEN HURT BY ITS BIGGEST DEAL RJR NABISCO INC RJR REPRESENTS 39 OF KKR'S TOTAL INVESTMENTS LEAR SIEGLER ACCOUNTS FOR 20 OF ALL DOLLARS EVER INVESTED BY FORSTMANN LITTLE YET FORSTMANN LITTLE'S TRACK RECORD HAS BEEN UNSCATHED BY THE DEVELOPMENTS AT LEAR SIEGLER THAT'S BECAUSE FORSTMANN ONLY INCLUDES COMPLETED DEALS IN CALCULATING ITS RETURNS MEANING THAT THE DEAL'S ASSETS HAVE ALL BEEN RESOLD TO OTHER INVESTORS OR THAT THE COMPANY'S STOCK IS NOW TRADING PUBLICLY BY THAT METHOD FORSTMANN DOESN'T COUNT LEAR SIEGLER AND THREE OTHER DEALS THAT ARE STILL AWAITING SOME ULTIMATE DISPOSITION YET THOSE FOUR UNCOMPLETED DEALS REPRESENT NEARLY HALF OF ALL THE MONEY FORSTMANN HAS EVER INVESTED THE 14 COMPLETED DEALS ALL PROFITABLE INVOLVED ORIGINAL INVESTMENTS BY FORSTMANN OF 515 MILLION OF EQUITY AND 144 BILLION IN DEBT WHICH GENERATED TOTAL RETURNS OF 518 BILLION THROUGH JULY 29 THE FOUR UNCOMPLETED DEALS INVOLVED ORIGINAL INVESTMENTS OF 492 MILLION IN EQUITY AND 145 BILLION IN DEBT IN ADDITION TO LEAR SIEGLER THE UNCOMPLETED DEALS INCLUDE PULLMAN CO WHICH IN LATE 1991 HALTED MAKING INTEREST PAYMENTS ON 250 MILLION IN DEBT HELD BY FORSTMANN INVESTORS AND GULFSTREAM AEROSPACE CORP LAST YEAR HAD A DROP IN SALES OF ITS BUSINESS JETS AND THIS YEAR TRIMMED ITS WORK FORCE 13 TO CUT COSTS THE FOURTH DEAL GRIMES AEROSPACE HASN'T SUFFERED ANY DRASTIC PROBLEMS A FORSTMANN SPOKESMAN SAYS THE FIRM STILL EXPECTS THE FOUR UNCOMPLETED DEALS WILL IN AGGREGATE DELIVER A SUBSTANTIAL RETURN TO INVESTORS PRIVATELY FORSTMANN LITTLE EXECUTIVES ACKNOWLEGE IT IS A LONGSHOT THAT THOSE RETURNS COULD EQUAL THOSE OF THE 14 COMPLETED PROFITABLE DEALS IF THE FOUR UNCOMPLETED DEALS EVENTUALLY PRODUCE AN AGGREGATE RETURN OF ZERO MEANING A RETURN OF INVESTORS' CAPITAL WITH INTEREST BUT WITH ZERO EQUITY APPRECIATON THE FIRM ACKNOWLEDGES THAT WOULD DRAG DOWN ITS EQUITY RETURNS TO 65 TO 70 AND ITS DEBT RETURNS TO ABOUT 25 MR FORSTMANN IS KNOWN FOR HIS DIATRIBES AGAINST JUNK BONDS HE AVOIDED THEM IN FINANCING BUYOUTS BY INSTEAD USING HIS OWN SUBORDINATED DEBT FUNDS WHICH PAID INTEREST AT THE BELOWMARKET RATE OF ONE PERCENTAGE POINT ABOVE THE RATE ON FIVEYEAR US TREASURY NOTES INVESTORS IN THE DEBT FUNDS WERE ALSO ENTITLED TO A 375 EQUITY STAKE IN EACH BUYOUT MR FORSTMANN USUALLY FINANCED HIS DEALS WITH ABOUT THREE PARTS SUBORDINATED DEBT FOR EVERY ONE PART EQUITY PUT UP BY HIS INVESTORS THE ONLY INVESTORS WHO COULD INVEST IN THE EQUITY FUNDS WERE THOSE IN THE MUCHLARGER DEBT FUNDS AS A RESULT BECAUSE THE EQUITY WASN'T GENERALLY AVAILABLE BY ITSELF SOME INVESTORS CONSIDER FORSTMANN'S DEBT AND EQUITY AS A SINGLE COMBINED INVESTMENT NOT COUNTING THE FOUR UNCOMPLETED DEALS FORSTMANN SAYS THE ANNUAL RETURNS ON THE DEBT AND EQUITY COMBINED HAVE BEEN AROUND 40 THAT 40 TOTAL RETURN IS WELL ABOVE THE 20 TO 30 TARGETED BY MOST LEVERAGED BUYOUT FUNDS HOWEVER A BREAKEVEN RESULT ON THE FOUR UNCOMPLETED DEALS COULD DRAG THE TOTAL RETURN DOWN TO THE LOW 30S STILL SIZZLING AS AN ANNUAL RATE BUT CONSIDERABLY CLOSER TO THE REST OF THE BUYOUT UNIVERSE THE RETURNS WOULD BE EVEN LOWER IF MR FORSTMANN APPLIED A DISCOUNT TO THE VALUE OF STOCK THE FIRM RETAINS IN THREE COMPANIES THAT TRADE PUBLICLY AS KKR DOES OR IF THE FOUR DEALS TOGETHER FALL SHORT OF BREAKEVEN A FORSTMANN SPOKESMAN SAYS IT'S INAPPROPRIATE TO COMPARE THE BLENDED RATE WITH OTHER LEVERAGED BUYOUT FUNDS BECAUSE FORSTMANN'S COMBINATION OF EQUITY AND SUBORDINATED DEBT IS LESS RISKY FORSTMANN EXECUTIVES SAY THEY HAVEN'T KEPT THE PROBLEM DEALS IN THE UNCOMPLETED CATEGORY IN ORDER TO BOLSTER MR FORSTMANN'S IMAGE AND KEEP THE FIRM'S REPORTED RETURNS IN THE SIZZLING CATGEORY THE FIRM MAKES ALL ITS DECISIONS SOLELY ON ECONOMICS A SPOKESMAN SAYS HOWEVER WALL STREET EXECUTIVES SAY IT ISN'T UNUSUAL FOR BUYOUT FUNDS TO TRY TO CAPTURE PROFITS FROM THEIR WINNING INVESTMENTS QUICKER THAN THEY DISPOSE OF THEIR LOSERS THAT PATTERN CAN EASILY DISTORT A FIRM'S REPORTED RETURNS PARTICULARLY WITHOUT ANY ATTEMPT TO APPRAISE THE LOSERS SOME OF FORSTMANN'S INVESTORS A FEW DOZEN CORPORATE AND PUBLICEMPLOYEE PENSION FUNDS HAVE SOUGHT MORE INFORMATION ABOUT THE VALUE OF THE UNCOMPLETED INVESTMENTS SUCH APPRAISALS ARE ROUTINELY PROVIDED BY TWO OF FORSTMANN'S BIG BUYOUT RIVALS KKR AND MERRILL LYNCH & CO BUT ANOTHER RIVAL CLAYTON DUBILIER & RICE INC REPORTS THE SAME WAY AS FORSTMANN JOHN CARROLL WHO RUNS THE 137 BILLION PENSION FUND AT GTE CORP A FORSTMANN INVESTOR SAYS THAT EVEN IF FORSTMANN HAS TROUBLE WITH ONE OR TWO INVESTMENTS THE PROFITS ON THE WINNERS HAVE BEEN LARGE ENOUGH TO OVERSHADOW SUCH PROBLEMS HE SAYS HE WOULDN'T BE HAPPY IF LEAR SIEGLER AND PULLMAN SIGNIFICANTLY REDUCE THE ANNUAL RETURNS BUT HE SAYS MOST INVESTORS WOULD BE DELIGHTED TO RECEIVE TOTAL RETURNS OF EVEN 25 ANNUALLY MR CARROLL NOTES THAT A FEW YEARS AGO FORSTMANN'S INVESTMENT IN GENERAL INSTRUMENT CORP WHICH MAKES CABLE TV EQUIPMENT WOULD HAVE LOOKED LIKE A REAL DOG BUT LATELY INVESTORS HAVE BID UP THE STOCK ON HOPES THAT IT WILL PROFIT FROM INTERACTIVE CABLE TV CONVERTERS NOW IT'S FORSTMANN'S BIGGEST HOME RUN GENERATING PROFITS OF 174 BILLION ON AN ORIGINAL INVESTMENT OF 202 MILLION IN EQUITY AND 600 MILLION IN DEBT MR CARROLL SAYS IT MIGHT BE HUMAN NATURE FOR THE FORSTMANN FIRM TO POSTPONE ACTION ON ITS LOSING INVESTMENTS IN HOPES THEY WILL TURN AROUND HE ADDS THERE'S AN ASPECT OF SHOW BUSINESS IN ALL OF THIS FORSTMANN LITTLE ACQUIRED LEAR SIEGLER THEN A CALIFORNIA DEFENSE CONTRACTOR USING 190 MILLION IN EQUITY AND 600 MILLION IN SUBORDINATED DEBT FROM ITS INVESTORS' FUNDS FORSTMANN QUICKLY SOLD ITS AEROSPACE AUTO SEATING AND OTHER SMALLER BUSINESSES FOR 14 BILLION REPAYING HALF OF THE SUBORDINATED DEBT RECENTLY IT SOLD OFF ENOUGH OTHER ASSETS TO REPAY ITS BANK DEBT HOWEVER THE WEAK ECONOMY AND FALLING PRICES HAVE TAKEN A TOLL ON THE REMAINING CAR WINDSHIELD BUSINESS IN ITS LETTER TO SHAREHOLDERS LEAR SIEGLER EXECUTIVES SAID ALTHOUGH WE ARE VERY DISAPPOINTED THAT SAFELITE HAS NOT YET REALIZED THE SIGNIFICANT POTENTIAL WE HAD EXPECTED OF IT MANAGEMENT OF SAFELITE BELIEVES THAT THE COMPANY IS NOW POISED FOR A PERIOD OF RAPID EARNINGS GROWTH ACCORDINGLY LIQUIDATING THE INVESTMENT NOW WOULD NOT BE THE RIGHT COURSE OF ACTION SOME RIVAL BUYOUT EXECUTIVES SAY THE VALUE OF LEAR SIEGLER MAY ALSO BE HURT BY THE RISK OF PRODUCT LIABILITY FOR ITS FORMER PIPER AIRCRAFT DIVISION A SPOKESMAN CALLS THAT A NONISSUE THE TWO OTHER QUESTION MARKS IN FORSTMANN'S UNCOMPLETED PORTFOLIO ARE PULLMAN AND GULFSTREAM PULLMAN A CARPARTS MAKER STOPPED PAYING INTEREST ON 250 MILLION IN FORSTMANNRAISED DEBT IN LATE 1991 JEOPARDIZING A 65 MILLION EQUITY INVESTMENT AND GULFSTREAM IS BETTING ON A NEW GENERATION OF GULFSTREAM V JETS TO RECOUP FORSTMANN'S 187 MILLION EQUITY INVESTMENT AND 450 MILLION SUBORDINATED DEBT BUT THE GULFSTREAM V'S WON'T BE DELIVERED UNTIL 1996 AND SALES OF THE EXISTING GULFSTREAM IV FELL IN 1992 MR FORSTMANN HIMSELF DECLINED TO COMMENT ON THE ISSUE OF LEAR SIEGLER AND THE FIRM'S RETURNS IN RECENT YEARS HE HAS SPENT LESS TIME AT THE FIRM'S NEW YORK HEADQUARTERS AND MORE WORKING OUT OF AN OFFICE IN HIS NEW HOME IN BEVERLY HILLS CALIF HE HAS ALSO PURSUED HUMANITARIAN CAUSES SUCH AS AID TO BOSNIAN REFUGEES FORSTMANN SHOWS BIG PROFITS ON 14 COMPLETED DEALS BUT HOW ARE INVESTORS FARING ON THE OTHER FOUR TABLE SHOWS EQUITY AND DEBT INVESTED IN MILLIONS OF DOLLARS 9308100008 930810 ENTERPRISE FOCUS ON FRANCHISING FASTFOOD FRANCHISERS EXPERIMENT WITH NEW FORMATS BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL NEW FORMATS UNDERGO TESTS AS FRANCHISERS ALTER COURSE CLONE A WINNING BUSINESS OVER AND OVER THAT'S WHAT FRANCHISERS USUALLY TRY TO DO BUT RIGHT NOW SEVERAL ESTABLISHED FASTFOOD FRANCHISERS ARE TESTING SECOND FORMATS IN SOME CASES BECAUSE THE MARKET FOR THE FIRST FORMAT IS GLUTTED FOR EXAMPLE SIZZLER INTERNATIONAL INC LOS ANGELES WORRIES ABOUT OVERCROWDING IN THE BUDGETSTEAKHOUSE MARKET SO IT IS TESTING FULLSERVICE BUFFALO RANCH UNITS WITH HIGHER PRICES THAN SELFSERVICE SIZZLERS SO FAR THE FRANCHISER HAS CONVERTED FOUR COMPANYOWNED SIZZLER UNITS INTO THE NEW FORMAT TWO MORE ARE DUE TO OPEN LATER THIS MONTH THE RESULT SAYS SIZZLER IS HIGHER SALES AT THOSE SITES AS WELL AS AT NEARBY SIZZLERS CHAIRMAN JAMES A COLLINS EXPLAINS THAT BUFFALO RANCH ATTRACTS PEOPLE WHO DIDN'T EAT AT SIZZLER BEFORE WHILE ABOUT ONETHIRD OF THE CUSTOMERS FROM THE CLOSED SIZZLERS NOW EAT AT THE NEARBY SIZZLERS STILL OPEN MR COLLINS SAYS SOME MULTIUNIT FRANCHISEES OF SIZZLER ARE EAGER TO OPEN BUFFALO RANCH UNITS BUT THE COMPANY ISN'T YET READY TO FRANCHISE THE NEW FORMAT UNO RESTAURANT CORP THE WEST ROXBURY MASS FRANCHISER OF THE PIZZERIA UNO RESTAURANT & BAR FORMAT IS TRYING SLIMMEDDOWN UNITS THAT ARE STRICTLY FOR TAKEOUT AND DELIVERY OF PIZZA IT'S REALLY TAKING A SEGMENT OF OUR BUSINESS AND ESTABLISHING IT ON ITS OWN TWO FEET SAYS CHAIRMAN AARON D SPENCER SOME NEW FORMATS FLUNK FRANCHISERS' TESTS EL CHICO RESTAURANTS INC DALLAS LAST YEAR SOLD A PROTOTYPE RESTAURANT IN NASHVILLE TENN CALLED TEXANA GRILL WHICH HAD HIGHER PRICES THAN EL CHICO UNITS AS WELL AS A DIFFERENT FORMAT THE RETURN ON INVESTMENT WAS BETTER AT EL CHICO AND THE MARKET TO FRANCHISE EL CHICO WILL BE BETTER SAYS SUSAN HOLLAND COMPANY CONTROLLER BIG FRANCHISEES ALSO PLAY THE MULTIFORMAT GAME HAVING EARNED A BUNDLE ON ONE FRANCHISE CONCEPT MANY FRANCHISEES TRY A SECOND MORGAN'S FOODS INC CLEVELAND OWNS 68 KENTUCKY FRIED CHICKEN OUTLETS FRANCHISED BY A PEPSICO INC UNIT NOW IT SAYS IT IS EXCITED ABOUT THE FULLSERVICE EAST SIDE MARIO'S RESTAURANT IT OPENED IN APRIL IN CHAPEL HILL OHIO IT SAYS THE FORMAT CAN ATTAIN FIVE TIMES AS MUCH IN SALES AS A TYPICAL FRIEDCHICKEN OUTLET FAST FOOD IS PRETTY MATURE SAYS MORGAN'S CHAIRMAN LEONARD STEINSAPIR MIDPRICED CASUAL DINING IS WHERE IT'S AT THESE DAYS UNDER A DEVELOPMENT AGREEMENT WITH FRANCHISER PRIME RESTAURANT GROUP INC MORGAN'S EXPECTS TO OPEN TWO DOZEN MORE EAST SIDE MARIO'S UNITS BY MARCH 1996 SIMILARLY APPLE SOUTH INC MADISON GA ALREADY OWNS 70 RESTAURANTS FRANCHISED BY APPLEBEES INTERNATIONAL INC AND 10 FRANCHISED BY HARDEE'S FOOD SYSTEMS INC IT IS TESTING A THIRD FORMAT GIANNI'S WHICH IT HAS ACQUIRED AND IS DEVELOPING ITSELF AS A COMPANYOWNED CHAIN APPLE SOUTH AIMS TO PROVIDE ITSELF WITH AN ALTERNATIVE GROWTH VEHICLE A COMPANY SPOKESMAN SAYS FOR NOW APPLE SOUTH HAS NO PLANS TO OFFER THE GIANNI'S FORMAT TO OTHER OPERATORS BUT SAYS IT ISN'T RULING OUT THE POSSIBILITY SET LOOSE BY UNION CARBIDE FRANCHISER SEEKS A TURNAROUND IN MAY UNION CARBIDE CORP WHICH HAS BEEN SHEDDING NONSTRATEGIC BUSINESSES SOLD THE ASSETS OF ITS MARBLERESTORATION FRANCHISING UNIT TO A NEW COMPANY MARBLELIFE INC IN CANTON MICH CARBIDE CONFIRMS IT HAD INVESTED ABOUT 7 MILLION IN THE FOURYEAROLD BUSINESS WHICH NEVER TURNED A PROFIT BUT THE NEW OWNERS EXPECT TO DO BETTER IN A YEAR OR LESS WE'LL BE IN THE BLACK FROM TURNING THE BUSINESS AROUND SAYS GERALD ED WILLIAMS MARBLELIFE'S PRESIDENT MARBLELIFE SAYS IT IS OPERATING WITH ONLY EIGHT EMPLOYEES IN CONTRAST CARBIDE HAD BEGUN THE BUSINESS WITH 22 BEFORE EVENTUAL CUTS TO ABOUT 10 MARBLELIFE ALSO SAYS IT WILL PERFORM MORE WORKON ADVERTISING FOR INSTANCE WITHOUT OUTSIDE HELP AS EXECUTIVE VICE PRESIDENT BAXTER COFFEE PUTS IT YOU HAVE TO BE LEAN AND MEAN TO OPERATE A FRANCHISE MACHINE THE COMPANY ALSO SAYS IT HAS INCREASED MARKETING ASSISTANCE TO THE 17 FRANCHISEES WHO OPERATE UNDER THE MARBLELIFE NAME CARBIDE GAVE FRANCHISEES SEVEN TWOINCH BINDERS OF INSTRUCTIONS MARBLELIFE SAYS IT HAS CUT DOWN TO JUST TWO HOLY COW HOLEECHOW OF ALL CHAINS HAS FAILED TO DELIVER THOMAS BURNHAM FOUNDER OF HOLEECHOW INC HAD BIG PLANS AND A GIFT FOR WINNING PUBLICITY FOR THE ANN ARBOR MICH FRANCHISER THE COMPANY STARTED IN 1991 BOASTED OF PLANS FOR MORE THAN 300 UNITS SPECIALIZING IN HOME DELIVERY OF CHINESE FOOD MR BURNHAM SAID THE FRANCHISER COULDN'T MISS IN PART BECAUSE HE AND SEVERAL OTHER MAIN PLAYERS HAD WORKED AT SUCCESSFUL DOMINO'S PIZZA INTERNATIONAL INC BILLING HIMSELF AS AN EXPERT ON FRANCHISING MR BURNHAM EVEN TAUGHT FRANCHISING AT THE UNIVERSITY OF DALLAS BUT AFTER RUNNING THROUGH ABOUT 5 MILLION MOSTLY FROM MEXICAN INVESTORS MR BURNHAM LEFT IN MARCH SAYS HIS SUCCESSOR AS PRESIDENT FRED THOMAS OUT OF MONEY THE FRANCHISER SOON CLOSED ITS OFFICE MR BURNHAM COULDN'T BE REACHED FOR COMMENT BUT MR THOMAS SAYS WE GREW TOO QUICKLY WE GOT SPREAD TOO THIN MR THOMAS IS NOW WORKING WITHOUT EMPLOYEES FROM HIS DEXTER MICH HOME AND SEEKING NEW CAPITAL HOLEECHOW HAS CLOSED ITS COMPANYOWNED STORES IT SAYS 10 FRANCHISED UNITS IN THE US AND TWO IN MEXICO ARE STILL OPERATING AN UNRELATED COMPANY OVERSEES HOLEECHOW UNITS IN CANADA MR THOMAS DECLINES TO SAY WHETHER THE FRANCHISEES ARE STILL PAYING ROYALTIES FRANCHISEE MARK T OLIVIER IN CHAGRIN FALLS OHIO SAYS HE IS KEEPING HIS PAYMENTS IN ESCROW UNTIL THE FRANCHISER RESUMES OPERATIONS MEANWHILE HIS THREE UNITS ARE BENEFITING FROM THE RECENT SLIMMING OF HOLEECHOW'S MENU TO 20 OR SO ITEMS FROM 90 IT'S GETTING EASIER TO OPERATE AND CONTROL INVENTORY HE SAYS FRANCHISEE RICHARD FABIAN IN PITTSBURGH SAYS HE EXPECTS THE FRANCHISER TO FIND THE BACKERS IT NEEDS BRIEFS FRANCHISER LITTLE GYM INTERNATIONAL INC IN SEATTLE SAYS IT WILL EXPAND TO JAPAN THROUGH A SUBFRANCHISER BASED IN OREGON A SMALL BIRMINGHAM MICH COMPANY NAMED NATGO INC SAYS IT PLANS A CHAIN OF NATURALGAS FILLING STATIONS 9308100007 930810 ADAPTEC SETTLES HOLDER LAWSUIT MILPITAS CALIF ADAPTEC INC SAID IT SETTLED A SHAREHOLDER LAWSUIT ALLEGING SECURITIESLAW VIOLATIONS FOR 42 MILLION THE COMPUTERPRODUCTS MAKER SAID THE SETTLEMENT WILL RESULT IN A ONETIME CHARGE OF SEVEN CENTS A SHARE IN ITS SECOND FISCAL QUARTER ENDING OCT 10 ANALYSTS HAVE BEEN PROJECTING THAT ADAPTEC WOULD EARN ABOUT 51 CENTS A SHARE IN THAT PERIOD ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ADAPTEC CLOSED AT 28875 DOWN 125 CENTS 9308100006 930810 AMERICAN BUSINESS PRODUCTS INC ATLANTA AMERICAN BUSINESS PRODUCTS INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE INTERNATIONAL ENVELOPE CO A MANUFACTURER OF ENVELOPES TERMS WEREN'T DISCLOSED AMERICAN BUSINESS A SUPPLIER OF BUSINESS PRODUCTS SAID THE PROPOSED ACQUISITION WOULD GIVE THE COMPANY ENTRY INTO NEW NICHE MARKETS 9308100005 930810 FIRST WESTERN BUYS PORTFOLIO SCOTTSDALE ARIZ FIRST WESTERN CORP SAID IT PURCHASED A 14 BILLION MORTGAGESERVICING PORTFOLIO FROM HEADLANDS MORTGAGE CO FOR 125 MILLION THE PORTFOLIO INCLUDES 10700 SINGLEFAMILY RESIDENTIAL LOANS WITH A WEIGHTED AVERAGE NOTE RATE OF 77 AND AN AVERAGE LOAN BALANCE OF 134000 THE MORTGAGE BANKING AND SERVICING COMPANY SAID HEADLANDS IS BASED IN LARKSPUR CALIF THE PURCHASE FOLLOWS FIRST WESTERN'S MAY AND JUNE PURCHASES OF TWO PORTFOLIOS TOTALING 800 MILLION FROM UNIVERSAL AMERICAN MORTGAGE CO OF MIAMI AND PLAZA HOME MORTGAGE BANK IN SANTA ANA CALIFEND 9308100004 930810 INTERNATIONAL TAIWAN GOVERNMENT ACCUSES OFFICIALS TIED TO CONTRACT AWARD SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN THE GOVERNMENT ACCUSED 15 CURRENT AND FORMER OFFICIALS AT STATE COMPANIES OF GIVING UNFAIR ADVANTAGES TO US AND TAIWANESE BUSINESSES IN A CONSTRUCTION PROJECT THE CONTROL YUAN A GOVERNMENT WATCHDOG BODY ALLEGED THAT 10 OFFICIALS OF CHINA PETROLEUM CORP LEAKED CONFIDENTIAL INFORMATION TO ENGINEERING COMPANY BROWN & ROOT INC HOUSTON AND ITS TAIWANESE MIDDLEMAN TO HELP THEM WIN A 452 BILLION TAIWAN DOLLAR 1695 MILLION CONTRACT FOR A WASTEWATER TREATMENT PROJECT IN A REFINERY THEY WERE ALSO ACCUSED OF LOWERING THE PROJECT'S TECHNICAL REQUIREMENTS FOR THE US COMPANY THE SOLE BIDDER THE OFFICIALS INCLUDE CHEN YAOSHENG WHO RETIRED IN JULY AS CHAIRMAN OF CHINA PETROLEUM AND FORMER COMPANY PRESIDENT KUAN YUNGSHIH MEANWHILE FIVE OFFICIALS OF THE TANG ENG IRON WORKS WERE ACCUSED OF TRYING TO PROFIT FROM SUBCONTRACTS ON THE PROJECT IN DALLAS A SPOKESMAN FOR HALLIBURTON CO THE PARENT OF BROWN & ROOT SAID AS WE HAVE STATED BEFORE INVESTIGATIONS BY BROWN & ROOT AND GOVERNMENT OFFICIALS HAVE FOUND NO WRONGDOING BY BROWN & ROOT OR ITS EMPLOYEES HE ADDED IF WE KNEW THEN WHAT WE KNOW NOW ABOUT THE POLITICAL ASPECTS OF DOING BUSINESS IN TAWIAN WE CERTAINLY WOULD NOT HAVE BID ON THE PROJECT IN THE FIRST PLACE THE YUAN SAID IT PLANS TO PRESENT ITS FINDINGS TO A COURT FOR FURTHER INVESTIGATION OF ALLEGED CRIMINAL OFFENSES IN JUNE THE TAIPEI DISTRICT COURT INDICTED SEVEN EXECUTIVES FOR RECEIVING BRIBES AND PROFITING ILLEGALLY FROM THE PROJECT 9308100001 930810 CREDIT RATINGS PROPERTYCASUALTY PROBLEMS LEAD S&P TO CUT CIGNA RATINGS NEW YORK STANDARD & POOR'S CORP DOWNGRADED SOME OF THE RATINGS ON CIGNA CORP CITING THE POOR RESULTS OF THE COMPANY'S PROPERTY AND CASUALTY INSURANCE BUSINESS CIGNA'S SENIOR DEBT WAS DOWNGRADED TO SINGLEA FROM SINGLEAPLUS ABOUT 12 BILLION OF DEBT IS AFFECTED THE RATING CONCERN ALSO DOWNGRADED THE CLAIMSPAYING ABILITY RATING OF CIGNA'S PROPERTY AND CASUALTY OPERATION TO TRIPLEBPLUS FROM SINGLEA THE RATINGS OF CIGNA'S LIFE INSURANCE UNIT CONNECTICUT GENERAL LIFE INSURANCE CO WERE AFFIRMED AT TRIPLEA DEBT RATINGS EVALUATE A COMPANY'S ABILITY TO PAY DEBT AND LOWER RATINGS MIGHT MAKE IT MORE EXPENSIVE TO ISSUE DEBT CLAIMSPAYING RATINGS LOOK AT THE ABILITY TO PAY POLICYHOLDERS AND LOWER RATINGS CAN MAKE IT HARDER TO SELL POLICIES LAST YEAR CIGNA REPORTED ITS LOWEST PROFITS SINCE 1985 BECAUSE OF LOSSES IN ITS PROPERTY AND CASUALTY SEGMENT CIGNA HAS BROUGHT IN NEW MANAGEMENT TO TURN AROUND THE OPERATION BUT S&P SAID IT IS TOO EARLY TO JUDGE THE EFFECTIVENESS OF THE CHANGES CIGNA REMAINS MEANINGFULLY EXPOSED TO ADVERSE GLOBAL PROPERTY AND CASUALTY MARKET CONDITIONS AND TO POTENTIAL LIABILITIES IN ITS PROPERTY AND CASUALTY BUSINESS WHICH COULD NEGATIVELY IMPACT OVERALL CORPORATE OPERATING RESULTS FOR THE NEXT SEVERAL YEARS SAID THE S&P REPORT CIGNA RESPONDED THAT THE PROPERTY AND CASUALTY OPERATION IS FINANCIALLY STRONGER THAN SOME HIGHERRATED COMPANIES WHEN ITS CAPITAL IS COMPARED TO THE RISKINESS OF ITS OPERATIONS AND INVESTMENTS CIGNA ALSO SAID IT HAS ALREADY MADE PROGRESS IN STRENGTHENING THE UNDERWRITING OF THE PROPERTY AND CASUALTY BUSINESS CUTTING EXPENSES AND IDENTIFYING GROWTH AREAS 9308100143 930702 HIS SPECIAL INTEREST IS BAN ON GIFT GIVING BY SPECIAL INTERESTS WISCONSIN'S FEINGOLD LAUNCHES CRUSADE AGAINST PERKS THE NEEDY GET THE GOODS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SEN RUSS FEINGOLD FRESH FROM SQUEAKY CLEAN WISCONSIN IS TRYING TO RID HIMSELF OF THE CORRUPTING INFLUENCES HERE SO THE DC CENTRAL KITCHEN FOOD PURVEYOR TO THE HOMELESSNOW HAS A COOKBOOK FROM THE NATIONAL RIFLE ASSOCIATION IT'S A SIGNED COPY SAYS CHAPMAN TODD THE KITCHEN'S ASSOCIATE DIRECTOR IT TELLS YOU WHAT TO DO AFTER YOU'VE GONE HUNTING WITH WHAT YOU'VE SHOT THERE'S MORE BECAUSE THE DEMOCRAT IS GETTING RID OF ALL FREEBIES FROM LOBBYISTS AND SPECIALINTEREST GROUPS THE CAPITOL HILL KITCHEN HAS RECEIVED NOT ONLY FOODSTUFFS CANDY COOKIES BRATWURST SODA AN APPLE PIE BUT ALSO CALENDARS MUGS BOOKENDS A ROSARY AND A CLINTONGORE LAPEL PIN IN THE SHAPE OF MINNESOTA I GET A KICK OUT OF GOING THROUGH THEIR STUFF IT'S NOT THE ORDINARY KIND OF THINGS YOU NORMALLY RECEIVE HERE SAYS MR TODD WHO NOTES THAT HE HAS ON HIS DESK A HYDROPONIC PLANT BOLDLY LABELED NYNEX THE TELEPHONE COMPANY'S GIFT TO SEN FEINGOLD SEN FEINGOLD'S GIVEITALLAWAY CRUSADE IS A PARABLE OF WASHINGTON OR MORE SPECIFICALLY OF POSTCHECKKITING SCANDAL POSTPAY GRAB POSTKEATING FIVE WASHINGTON THE YOUNG SENATOR RODE HERE ON LAST YEAR'S WAVE OF PUBLIC DISGUST WITH INCUMBENTS AND BUSINESS AS USUAL TOPPLING A TWOTERM REPUBLICAN NOW HE JOINS A SMALL VANGUARD OF REFORMERS AT A TIME THAT IS SHAPING UP AS ONE OF THOSE PERIODIC COMECLEAN BINGES FOLLOWING SCANDAL IN THIS TOWN IT'S TIME TO CLEAN UP STUFF LIKE THIS HE SAYS THUMPING A LOG OF BOOTY THAT RECORDS 201 GIFTS SINCE HE TOOK OFFICE FIVE MONTHS AGO THIS IS THE MOTHER OF ALL PERKS IT'S POTENTIALLY WORTH TENS OF THOUSANDS OF DOLLARS A YEAR AND IT'S BEEN A PART OF THE WAY OF LIFE AROUND HERE BUT WASHINGTON BEING WASHINGTON THE QUESTION OFTEN ASKED IS WHETHER THE SENATOR WHO ACCEPTED 460000 IN CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES TO HELP WIN HIS SEAT REPRESENTS A NEW ATTITUDE OR THE KIND OF PRACTICED SELFRIGHTEOUSNESS THAT WASHINGTON EXCELS AT PREDICTABLY THE SENATOR'S CRUSADE GETS GREAT PRESS BACK HOME ONE LOCAL PAPER WROTE OF THE ETHICAL CHASM BETWEEN THE STATE CAPITAL IN MADISON AND THE NATIONAL CAPITAL IN WASHINGTON AND SALUTED SEN FEINGOLD FOR HIS HIGH ETHICAL STANDARDS STILL SOME HERE DO SUGGEST THAT SEN FEINGOLD LIGHTEN UP WHAT'S A LITTLE PLANT AFTER ALL GOD I HOPE HE'S NOT FOR SALE THAT CHEAPLY LOBBYIST AND FORMER DEMOCRATIC REP LLOYD MEEDS SAYS SARCASTICALLY HE COULD GET MORE THAN THAT ONCE A YEAR MR MEEDS'S LAW FIRM SENDS EACH MEMBER OF CONGRESS THREE JARS OF JAMS AND JELLIES FROM HIS HOME STATE OFWASHINGTON AND WE GET ALL KINDS OF VOTES FOR IT IN RETURN HE SAYS HE IS JOKING MR MEEDS IS CHAIRMAN OF THE ETHICS PANEL OF THE AMERICAN LEAGUE OF LOBBYISTS AND SAYS HE SUPPORTS THE SENATEPASSED LEGISLATION TO TIGHTEN RESTRICTIONS ON LOBBYISTS BUT HE ADDS AN UNSUCCESSFUL AMENDMENT BANNING ALL GIFTS SUPPORTED BY SEN FEINGOLD WAS TOO EXTREME AND WOULD THREATEN THE BILL'S PROSPECTS FOR PASSAGE TO SAY MEMBERS OR STAFF CAN'T HAVE A 21 MEAL REDUCES THE DAMN THING TO RIDICULOUSNESS HE SAYS BUT FRED WERTHEIMER PRESIDENT OF THE CITIZENS' GROUP COMMON CAUSE SAYS HE HAS SEEN TOO MUCH SLEAZE AND TOO MANY COMPROMISES ON LOBBYING LIMITS THAT SOON BECOME LOOPHOLES TO FRET THAT SEN FEINGOLD IS BEING RIDICULOUS GIVEN A CHOICE BETWEEN SEN FEINGOLD'S APPROACH AND WHAT'S GOING ON NOW ON CAPITOL HILL IT'S CLEAR WHAT'S PREFERABLE HE SAYS THE ISSUE IS NOT THE 20 LUNCH AND IT'S NOT ABOUT WHETHER MEMBERS OF CONGRESS CAN ACCEPT A PLANT IT'S ABOUT THE MANY VARIOUS WAYS THAT LOBBYISTS AND INTEREST GROUPS TRY TO INFLUENCE MEMBERS AND CURRY THEIR FAVOR MR WERTHEIMER CITES THE LACK OF DISCLOSURE ABOUT LUNCHES WITH LOBBYISTS THE AVALANCHE OF GIFTS THE EXPENSEPAID TRIPS AND TICKETS TO THE SUPER BOWL OR KENTUCKY DERBY EQUALLY OBJECTIONABLE IF CLOAKED IN PHILANTHROPY ARE THE CHARITABLE CONTRIBUTIONS LOBBY GROUPS MAKE IN A LAWMAKER'S NAME AND THE DONATIONS TO FOUNDATIONS THAT MEMBERS OF CONGRESS SET UP THE 40YEAROLD SENATOR HIMSELF INSISTS I HAVEN'T TRIED TO BE SELFRIGHTEOUS I HAVEN'T TRIED TO STICK IT IN PEOPLE'S EYES HE SAYS HE IS SIMPLY PLAYING BY WISCONSIN RULES IN DRAFTING AN ETHICS POLICY FOR HIMSELF AND HIS STAFF THAT IS STRICTER THAN SENATE RULES IN THE FEINGOLD OFFICE THE SENATOR ENFORCES AN OUTRIGHT BAN ON GIFTS MEALS AND MOST LOBBYPAID TRIPS FOR HIMSELF AND HIS STAFF HE GETS HELP FROM A STAFFER DUBBED THE ETHICS CZAR THE MOST CONTROVERSIAL GIFTS ARE THE TRIPS LAWMAKERS CAN TAKE AT SPECIAL INTERESTS' EXPENSE THE INVITATIONS TO SPEAK TO A GROUP OFTEN AT A RESORT AND THEN SPEND DAYS GOLFING AT THE GROUP'S EXPENSE SEN FEINGOLD IS TURNING DOWN MOST SUCH INVITATIONS HE WILL CONSIDER SPEAKING SOMEWHERE IF ASKED HE SAYS BUT WON'T STAY TO PLAY NOT LONG AGO HE SKIPPED A CHANCE TO WATCH THE VIRGINIA GOLD CUP STEEPLECHASE RACES FROM THE TENT AND BROADVIEW BOX OF THE US TELEPHONE ASSOCIATION WITH OTHER LAWMAKERS AND TELEPHONECOMPANY EXECUTIVES AND HE TURNED DOWN AN INVITATION TO COME TO CHICAGO FORA WEEKEND AS THE GUEST OF THE NATIONAL RESTAURANT ASSOCIATION WHICH AS ONE WOULD EXPECT GAVE MEMBERS OF CONGRESS AND THEIR FAMILIES A TASTE OF THE CITY'S BEST RESTAURANTS AS IS TYPICAL OF THESE THINGS THE OBLIGATORY BUSINESS MEETING SATURDAY MORNING WAS TO BE FOLLOWED BY FREE TIME FOR THE REST OF THE DAY AND A CHAMPAGNE RECEPTION BANQUET AND ENTERTAINMENT BY JAZZ MUSICIAN AL JARREAU THAT NIGHT BUT AS THE GIFTS THAT HAVE GONE TO DC CENTRAL KITCHEN SHOW MUCH OF THE BOOTY THAT COMES A LAWMAKER'S WAY IS HARDLY THE STUFF OF SCANDALMONGERS ONE RECENT MORNING GIFTS AWAITING RETURN TO THE SENDER OR DONATION TO CHARITIES WERE ARRAYED ON THE SENATOR'S CAPITOL OFFICE COFFEE TABLE AN AGRIBUSINESS IN MINNESOTA SENT THE SENATOR WHO SITS ON THE AGRICULTURE COMMITTEE SOME WILD RICE FROM THAT STATE NEXT TO IT WAS A BOX OF SIX HALOGEN LIGHT BULBS FROM A MANUFACTURER A WATERFORD CRYSTAL OBELISK FROM A LOCAL DEPARTMENT STORE WAS NEXT TO TWO CARTONS OF EGGS THAT A FARM GROUP HAD STAMPED WITH AN OFFICIALLOOKING GOVERNMENT SEAL GOT TO GET RID OF THESE SOON THE SENATOR SAYS WARILY SNIFFING THE EGGS SEE RELATED LETTER LETTERS TO THE EDITOR REAL ETHICS NOT A POSE WSJ AUG 3 1993 SEE RELATED LETTER LETTERS TO THE EDITOR ROOTS OF CORRUPTION WSJ AUG 10 1993 9307020127 9308030113 YY93 MM08 9308100086 930702 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AS 2500 TRADE UNION MEMBERS MARCHED IN BRUSSELS TO PROTEST HIGH UNEMPLOYMENT BELGIUM ASSUMED THE EUROPEAN COMMUNITY'S ROTATING PRESIDENCY BELGIAN PRIME MINISTER JEANLUC DEHAENE AFTER A MEETING WITH THE EC COMMISSION URGED RATIFICATION OF THE MONETARY AND POLITICAL UNIFICATION TREATY TO HELP PULL THE TRADE BLOC OUT OF ITS ECONOMIC MIRE HE SAID THE ACCORD WOULD HELP RESTORE CONFIDENCE IN EUROPE AND ALLOW EC MEMBERS TO FOCUS ON CURBING UNEMPLOYMENT WHICH NOW EXCEEDS 17 MILLION IN THE 12 MEMBER NATIONS THE NEXT SIX MONTHS COULD BE VERY IMPORTANT FOR EUROPE MR DEHAENE SAID WE HOPE WE WILL HAVE RATIFIED THE MAASTRICHT TREATY AND THIS WILL AFFORD EUROPE AN OPPORTUNITY TO GET BACK ON TRACK AND ASSUME A NEW DYNAMISM THOUGH HE WARNED AGAINST UNREALISTIC EXPECTATIONS A CHINESE COURT ORDERED A SUSPENDED DEATH SENTENCE FOR THE FORMERHEAD OF A STATERUN BANK IT SENTENCED HIM AND SEVEN OTHER TOP OFFICIALS OF BANKS TO PRISON TERMS RANGING FROM SIX YEARS TO LIFE AFTER THEY WERE FOUND GUILTY OF TAKING BRIBES FOR GRANTING 13 MILLION IN LOANS THE SENTENCES CAME A DAY AFTER A REPORT CHINA'S CENTRAL BANK CHIEF WAS TO BE OUSTED THE BEIJING LOANFRAUD CASE WAS THE THIRD MAJOR FINANCIAL SCANDAL DISCLOSED RECENTLY A MAJOR STATE BANK WAS STUNG BY AS MUCH AS 10 BILLION IN FALSE LETTERS OF CREDIT AND A SMALLTIME BUSINESSMAN CHEATED MORE THAN 100000 PEOPLE OUT OF THEIR SAVINGS THROUGH A 175 MILLION PYRAMID SCHEME ROMANIA INTRODUCED AN 18 VALUEADDED TAX ON MOST GOODS HERALDING IT AS A A STEP TOWARD A MODERN EUROPEAN ECONOMY THE FINANCE MINISTRY SAID THE VAT WILL CAUSE PRICE RISES OF ONLY 6 TO 8 AS IT REPLACES A SOCALLED TURNOVER TAX A LEVY OF BETWEEN 1 AND 30 ON VARIOUS STAGES OF PRODUCTION THE STEEPEST PRICE RISES WILL BE FOR FOODS WHICH HAD BEEN EXEMPT FROM TAXES PRICES OF SOME INDUSTRIAL PRODUCTS WILL DROP MANY ROMANIANS WHOSE LIVING STANDARDS HAVE WORSENED DURING TWO YEARS OF PRICE INCREASES UNDER ECONOMIC REFORMS FEARED MERCHANTS WOULD USE THE VAT TO RAISE PRICES TO UNJUSTIFIED LEVELS TWOTHIRDS OF BRITISH CHILDREN AGED 8 TO 12 BELIEVE JACQUES DELORS IS A FRENCH PROFESSIONAL SPORTSMAN A BRITISH NEWSPAPER'S EDITOR OR FRANCE'S PRESIDENT HE IS PRESIDENT OF THE EUROPEAN COMMUNITY COMMISSION A BRITISH MULTIPLECHOICE QUESTIONNAIRE ABOUT EUROPE ALSO FOUND THAT 64 OF THE KIDS HADN'T HEARD OF THE EC 25 SAID THE ECU OR EUROPEAN CURRENCY UNIT WAS A FRENCH TAXI AND 40 THOUGHT ERM STOOD FOR EUROPEAN ROAD MAP WHILE 20 KNEW IT IS THE EXCHANGERATE MECHANISM ASKED TO IDENTIFY IRELAND'S PRESIDENT MARY ROBINSON 21 PICKED ACTRESSMODEL JERRY HALL AND 23 BILL CLINTON AUSTRALIA'S ECONOMIC RECOVERY REMAINS SLOW AND HESITANT A QUARTERLY SURVEY OF MANUFACTURERS INDICATED RESPONDENTS IN NEW SOUTH WALES STATE SAID SECONDQUARTER BUSINESS CONDITIONS IMPROVED THE FIRST UPTURN FOR THAT PERIOD IN FIVE YEARS AND THEY WERE OPTIMISTIC ABOUT THE CURRENT QUARTER BUT MANUFACTURING ACTIVITY HASN'T PICKED UP AS EXPECTED IN THE PREVIOUS SURVEY IN MARCH CONDUCTED BY THE STATE BANK OF NEW SOUTH WALES AND THE STATE'S CHAMBER OF MANUFACTURERS BUSINESS AND CONSUMER CONFIDENCE ARE IMPROVING BUT 19000 MANUFACTURING JOBS COULD BE CUT ACROSS AUSTRALIA IN THE NEXT 12 MONTHS WHEN CHINA'S SICHUAN AIRLINES ACQUIRED FOUR TUPOLEV154 JETLINERS MADE IN THE FORMER SOVIET UNION THE PRICE FOR THE 160SEAT PLANES WAS 500 BOXCARS OF PORK AND HAINAN AIRLINES ANOTHER ONE OF THE 35 REGIONAL CARRIERS SET UP SINCE CHINA DEREGULATED THE INDUSTRY EXCHANGED 212 BOXCARS OF MANGO JUICE FOR A RUSSIAN ILYUSHIN IL86 A 350SEAT PASSENGER JET BARTER DEALS LONG A MEANS FOR POORER COUNTRIES TO ACQUIRE WEAPONS AND MILITARY AIRCRAFT HAVE EXPANDED AS IMPOVERISHED FORMER SOVIET REPUBLICS HOOK UP WITH CASHSTRAPPED BUT PRODUCTRICH CHINESE PROVINCES EAGER TO START THEIR OWN AIRLINES GARMENTS AND TEXTILES ALSO ARE COMMON CURRENCY IN CIVILIAN BARTER BUSINESS BETWEEN 300 AND 400 RUSSIAN PLANES SOME 30 YEARS OLD ARE FLOWN COMMERCIALLY IN CHINA LAST YEAR CHINESE AIRLINES BOUGHT AND LEASED MILLIONS OF DOLLARS OF AIRCRAFT FROM FORMER SOVIET STATES IN ADDITION TO THOSE THAT WERE BARTERED THE BARTER TRADE IS EXPECTED TO BOOM AS CHINESE AIR TRAVEL GROWS PASSENGER TRAFFIC WHICH JUMPED 32 LAST YEAR IS EXPECTED TO SURGE AT LEAST 20 THIS YEAR SOUTH KOREA LIFTED A BAN ON CHINESE TOURISTS THE TWO COUNTRIES ESTABLISHED DIPLOMATIC RELATIONS LAST YEAR BUT ALLOWED ONLY BUSINESS VISAS THE 1992 WINTER OLYMPICS IN ALBERTVILLE FRANCE POSTED A NET LOSS OF 485 MILLION BECAUSE OF SKYROCKETING CONSTRUCTION COSTS REVENUES TOTALED 6859 MILLION AND EXPENSES 7344 MILLION AFTER 14 YEARS OF TRYING TO STOP PEOPLE FROM CUTTING INTO LINES OR LITTERING SINGAPORE RENEWED FOR ANOTHER YEAR ITS CAMPAIGN APPEALING FOR BETTER COURTESY SEE RELATED LETTER LETTERS TO THE EDITOR WHY PICK ON THE KIDS WSJ AUG 10 1993 9307020049 YY93 MM08 9308100048 930716 LETTERS TO THE EDITOR WE DIDN'T LIKE HER AND WE'RE NOT WHINERS I AM AN 85YEAROLD ENGLISHWOMAN NOW LIVING AS A PERMANENT RESIDENT IN AMERICA IN READING YOUR JULY 2 EDITORIAL GOVERNMENT MEETS GODOT I WAS AMAZED AT YOUR DESCRIPTION OF MARGARET THATCHER AS STRONG AND PRINCIPLED I LIVED IN ENGLAND THROUGHOUT MRS THATCHER'S TIME AS PRIME MINISTER I MUST INFORM YOU THAT NOT ALL ENGLISH PEOPLE CONSIDERED HER AS HIGHLY PRINCIPLED WE THOUGHT THAT SHE CHANGED ENGLAND FROM A KINDLY AND TOLERANT COUNTRY INTO A CRUEL AND SELFISH ONE SHE TAUGHT THAT THE MOST IMPORTANT THING IN LIFE WAS TO MAKE MONEY FAILURE TO DO SO MADE ONE A MEMBER OF THE IMPOVERISHED UNDERCLASS SHE SO DESPISED HEAVEN HELP ANYONE EXPRESSING SYMPATHY FOR THE POOR THEY WERE WHINERS THUS IT WAS THAT AT THE END OF HER REIGN THE RICH WERE RICHER AND THEPOOR MUCH POORER THAN WHEN SHE TOOK OFFICE SO THAT THE DIFFERENTIAL BETWEEN THE RICH AND POOR WAS THE SAME AS IN THE 1870S HAVING BEEN REARED TO HAVE CONSIDERATION FOR THOSE LESS FORTUNATE THAN MYSELF I FOUND HER SOCALLED PRINCIPLES WERE ANATHEMA AS DID MANY PEOPLE LIKE ME SEE RELATED LETTER LETTERS TO THE EDITOR MAGGIE'S STEWARDSHIP REVITALIZED THE BRITISH WSJ AUG 10 1993 9307160086 YY93 MM08 9308100015 930702 THE BALKAN QUAGMIRE THE WAY OUT YUGOSLAVIA MAY NOT BE A PROBLEM FROM HELL AS SECRETARY OF STATE WARREN CHRISTOPHER SAYS HELL HOWEVER SEEMS THE ORIGIN OF THE FINAL SOLUTION REACHED BY WESTERN NEGOTIATORS WITH A GHETTO FOR THE MUSLIMS WHO FOUGHT FOR A MULTIETHNIC STATE IN BOSNIA AND WHO NOW WOULD DEPEND ON THE WEST TO DEFEND AND SUPPORT THEM IN PERPETUITY AND WITH THE OTHER FORMER YUGOSLAVIAN REPUBLICS MORE VULNERABLE THAN EVER OUR NEGOTIATORS STUMBLED BACKWARD INTO THE QUAGMIRE THEY TRIED TO AVOID IT IS THE WORST PERFORMANCE OF THE DEMOCRACIES SINCE WORLD WAR II AND THE MOST DANGEROUS IT WOULD BE BETTER FOR EUROPE AND THE US TO KEEP THEIR FINGERS OUT OF THE BALKANS ALTOGETHER THAN TO RESPOND TO SERBIAN AGGRESSION BY PUTTING THE FULL FORCE OF OUR DIPLOMACY BEHIND KEEPING THE VICTIMS OF AGGRESSION DISARMED ONLY TO FIND THAT BIT BY BIT WE ARE TAKING ON AN ENDLESS OBLIGATION IT WOULD BE BETTER STILL TO LOOK FOR A POLICY THAT WOULD ARM THE PROSPECTIVE VICTIMS AND LEAVE THEM WITH AN IMPROVED CHANCE A TO DEFEND THEMSELVES WITHOUT FURTHER HELP FROM US B TO ROLL BACK AS MUCH AS THEY CAN OF THE SERBIAN GAINS IN BOSNIA AND CROATIA AND C TO COMMIT THEMSELVES TO PROTECTING MINORITIES THAT IS TO AVOID ETHNIC CLEANSING OF THEIR OWN IF WE DON'T WANT TO DO IT OURSELVES WE HAVE TO RELY ON THE BOSNIANS AND OTHERS AND WE MUST HELP THEM THIS WILL REQUIRE AN INITIAL USE OF US FORCE AND POSSIBLY THAT OF SOME OTHER COUNTRIES THAT HAVE STRONGLY OPPOSED THE ARMS EMBARGO FOR EXAMPLE WE OR SOME ALLIES WILL NEED TO USE FORCE TO PROTECT THE DELIVERY OF WEAPONS TOSUPPRESS SERBIAN DEFENSES THERE IS LITTLE DOUBT THAT WE COULD HAVE DONE THIS MUCH MORE EASILY IF WE HAD STARTED TWO YEARS AGO AND THERE ARE EASIER IMPORTANT JOBS THAT WE'VE RECENTLY MISSED UNDERTAKING WE MISSED A BETTER OPPORTUNITY IN IRAQ WHEN WE IGNORED DISSIDENTS WHO HALF A YEAR BEFORE SADDAM INVADED KUWAIT HAD WITHOUT OUR ENCOURAGEMENT WORKED OUT A WIDE DEGREE OF CONSENSUS AMONG THE MANY FACTIONS AND FAITHS TO REPLACE THE BAATH DICTATORSHIP WITH A PLURALISTIC SOCIETY IN WHICH ALL MINORITIES WOULD BE PROTECTED INSTEAD WE TRIED FOR A PALACE COUP TO GET RID OF SADDAM BUT PRESERVE THE DICTATORSHIP AS A BALANCE AGAINST IRAN THIS WAS A CRITICAL FLAW IN OUR VICTORY IN DESERT STORM IT WILL CONTINUE TO HAUNT US WE SHOULDN'T REPEAT THIS ERROR IN YUGOSLAVIA JUST AS WE SHOULD HAVE RELIED MORE ON DISSIDENTS IN IRAQ WE SHOULD NOW RELY ON THOSE IN THE FORMER YUGOSLAVIA WHO OPPOSE PANSERBIAN AGGRESSION NO EASY SOLUTION WAS EVER LIKELY FOR YUGOSLAVIA NONETHELESS THERE IS MUCH THAT WE CAN DO TO IMPROVE THE ODDS FOR THE VICTIMS OF SERBIAN ATTACK I CAN ONLY SKETCH SOME OF THE POLITICAL AND MILITARY ELEMENTS OF A FEASIBLE INTERVENTION THE WEAPONS TECHNOLOGIES THATCAN DEAL WITH SERBIAN THREATS LIKE THAT OF THE USE OF ARTILLERY TO DESTROY POPULATION CENTERS THE MEANS OF GETTING THEM THERE AND THE KEY ROLE OF OUR TAKING THE LEAD IN ENDING THE ARMS EMBARGO THAT KEEPS SUCH WEAPONS FROM BEING USED IN COLLECTIVE SELFDEFENSE IN THE FORMER YUGOSLAVIAN REPUBLICS A CLEARCUT POLITICAL AND MILITARY POLICY TO ACHIEVE THIS LIMITED POLITICAL AIM TO STOP THE SERBIAN SLAUGHTER OF BOSNIAN UNARMED CIVILIANS WOULD USE C141S AND CARGO HELICOPTERS TO DELIVER WEAPONS AND OTHER MILITARY EQUIPMENT THAT WOULD LET THE BOSNIANS DEFEND THEMSELVES ARMS THAT WOULD ALLOW THE BOSNIANS TO DEFEND THEMSELVES WOULD INCLUDE ROCKET LAUNCHERS AND MORTARS OR BETTER ARTILLERY DIRECTED BY FIREFINDING SYSTEMS SUCH AS THE ANTPQ36 OR 37 DOPPLER RADARS THESE ARE CAPABLE OF TRACKING THE TRAJECTORY OF A SERBIANFIRED ARTILLERY ROUND AND LOCATING ITS SOURCE BEFORE THE ROUND HAS LANDED SERBIAN ARTILLERY CAN BE TOWED TO OTHER LOCATIONS AS MANY HAVE POINTED OUT BUT THE PUTATIVE EXPERTS WHO SAY THAT ARTILLERY CANNOT BE TARGETED ARE SIMPLY WRONG THE EFFECTIVE RANGES OF THE ANTPQ36 AND ANTPQ37 ARE 25 AND 50KILOMETERS RESPECTIVELY THEY ARE ESSENTIALLY A 20YEAROLD TECHNOLOGY WE HAVE ALREADY EXPORTED THEM TO CHINA AND AT LEAST FOUR MUSLIM COUNTRIES TURKEY SAUDI ARABIA PAKISTAN AND JORDAN THE FIRST THREE OF THESE OPPOSE THE ARMS EMBARGO WHILE SENDING WEAPONS TO DISABLE THE ARTILLERY THE SERBS ARE USING TO KILL CIVILIANS WE SHOULD CHOOSE WEAPONS AND TACTICS THAT WOULD REDUCE RISKS OF UNINTENTIONALLY HARMING SERBIAN OR ANY OTHER CIVILIANS TO REDUCE THE HARM BEING DONE BY SERBIAN ATTACKS ON AN URGENT BASIS WE OR ALLIES SUCH AS TURKEY WOULD HAVE TO SEND IN SPECIAL FORCES TO OPERATE THE EQUIPMENT WHILE TRAINING THE BOSNIANS IN BOSNIA AS WELL AS IN THE US TO REPLACE AMERICAN CREWS AS RAPIDLY AS POSSIBLE AND WE WOULD HAVE TO USE OUR OWN SPECIAL FORCES AT FIRST AND PROVIDE THE BOSNIANS WITH MUCHLESSADVANCED EQUIPMENT NEEDED TO DEFEND THE ADVANCED EQUIPMENT AND GROUND CREWS FROM GROUND ATTACK PROTECT OUR MEANS OF DELIVERING SUCH EQUIPMENT FIXEDWING TRANSPORTS AND THE HEAVYLIFT HELICOPTERS AGAINST SERBIAN ATTEMPTS TO SHOOT THEM DOWN BY USING THE APPROPRIATE FIGHTERS AND COUNTERMEASURE AIRCRAFT THERE ARE MANY DIFFERENCES BETWEEN BOSNIA AND THE CIRCUMSTANCES WE FACED IN IRAQ AND KUWAIT BUT NOT ALL THESE CIRCUMSTANCES MAKE THIS LIMITED TASK IN BOSNIA HARDER AIR DEFENSE IN BOSNIA FOR EXAMPLE IS FAR LESS ADVANCED AND FORMIDABLE THAN THE ADVANCED IRAQI NETWORK WE QUITE EASILY DISABLED DURING THE GULF WAR ESPECIALLY AT NIGHT A STEALTHY FIGHTER SUCH AS THE F117 COULD DESTROY THE SENSORS AND CONTROLS NEEDED TO MAKE THE SMALL NUMBER OF HIGHALTITUDE SA2 AND SA6 MISSILES INEFFECTIVE THIS WOULD MAKE WAY FOR OTHER LESS STEALTHY FIGHTERS AND THE TRANSPORT AIRCRAFT THAT COULD USE A VARIETY OF ELECTRONIC AND PHOTONIC COUNTERMEASURES IN BOSNIA THE LANDING AND OFFLOADING AREAS WOULD HAVE TO BE PROTECTED LESS SOPHISTICATED WEAPONRY THAN MENTIONED ABOVE SUPPLIED TO THE BOSNIANS WILL HELP IF THE CROATS SEE THAT THE CHANCES FOR THE BOSNIANS HAVE MUCHIMPROVED THEY MAY VERY WELL SWITCH BACK TO THE EARLY ALLIANCE THEY MADE WITH THE BOSNIANS IN ORDER JOINTLY TO RESIST MILOSEVIC'S AGGRESSION THAT WOULD BE MUCH IN THEIR INTEREST IF THEY DO IT WOULD OPEN UP MANY AREAS WHERE AIR TRANSPORTS COULD LAND SAFELY AND GREATLY INCREASE ACCESS BY SEA TRANSPORT WITH NO APPARENT ALTERNATIVE THE CROATS ENDED IN A DE FACTO PACT WITH THE MAN THEY FEAR MOST THIS HOWEVER WAS A DESPERATE MEASURE IT IS CONSIDERABLY LESS STABLE THAN THE PACT STALIN CONCLUDED WITH HITLER INTERRUPT THE VERY LONG AND VULNERABLE LINES OF SUPPLY AND LINES OF COMMUNICATION FROM SERBIA THROUGH BOSNIA A LOT OF THIS CAN BE DONE BY GUERRILLA FIGHTERS WITH PORTABLE WEAPONS IF NOT BY PRECISE AIR POWER THE DRINA RIVER SEPARATES FOURFIFTHS OF THE BORDER BETWEEN SERBIA AND BOSNIA BRIDGES THAT SPAN THE RIVER TO THE DRINA VALLEY IN BOSNIA PRESENT FINE TARGETS THE UNITS OF THE YUGOSLAVIAN ARMY REPORTING TO MILOSEVIC AND THE IRREGULAR UNITS CONTROLLED BY THE EXTREMIST SESELJ AND OTHERS HAVE SEPARATE LINES OF COMMUNICATION THAT DON'T WORK FULLY TOGETHER IN ANY CASE THEY COULD BE FURTHER DISRUPTED BROADCAST INFORMATION TO SERBS ON FREQUENCIES AVAILABLE TO ORDINARY SERBS IN THE COUNTRYSIDE AS WELL AS TO TOWNS IN SERBIA AND MONTENEGRO AND IN BOSNIA MILOSEVIC HAS HAD A MONOPOLY ON BROADCASTING ESPECIALLY IN THE COUNTRYSIDE RADIO FREE EUROPE WHICH BROADCASTS ONLY ON AUDIO IS UNLIKELY TO GET A RADIO FREE SERBIA STARTED WHILE BOSNIA STILL EXISTS BUT WE CAN ALSO USE SOLO VOLANT AIRBORNE TRANSMITTERS THAT BROADCAST ON THE VIDEO AND AUDIO FREQUENCIES THAT MILOSEVIC HAS MONOPOLIZED THESE BROADCASTS SHOULD BE OVERT NOT COVERT THEY SHOULD CONSIST OF STRAIGHTFORWARD INFORMATION NOT DISINFORMATION AS IS USUAL IN COVERT BROADCASTS FOR PSYCHOLOGICAL WARFARE SOME OF THE IMPORTANT INFORMATION THAT WE SHOULD BE HELPING THE BOSNIANS TO BROADCAST TO SERBS IN BELGRADE AS WELL AS BOSNIA IS PRECISELY THAT SERBIAN ARTILLERY IS SLAUGHTERING INNOCENTS THAT THE COUNTERFIRE IS DIRECTED AT STOPPING THE SLAUGHTER BY DISABLING THE WEAPONS WHILE AT THE SAME TIME TRYING TO REDUCE UNINTENDED HARM TO SOME OF THE MANY SERBS WHO FEEL UNEASY ABOUT THE DELIBERATE MURDER OF CIVILIANS IT IS EASY TO FORGET THAT MILOSEVIC HAS FACED WIDESPREAD AND ORGANIZED OPPOSITION TO HIS POLICIES MANY SERBS CAN BE WON OVER TOTHE TASK OF STOPPING THE CONFLICT IF THEY ARE EXPOSED CONSTANTLY TO THE UNAMBIGUOUS EVIDENCE OF THE ATROCITIES PERPETRATED BY MILOSEVIC AND THE BOSNIAN SERB LEADERSHIP OF KARADZIC THAT HE CREATED FREE SERBS SHOULD BE USED TO HELP PREPARE THESE BROADCASTS MORE THAN 200000 SERBS HAVE LEFT SERBIA IN ORDER TO AVOID CONSCRIPTION A COALITION HAS BEEN FORMED THE DEMOCRATIC MOVEMENT OF SERBIA TO OPPOSE MILOSEVIC UNIVERSITY STUDENTS STRUCK AGAINST THE REGIME LAST JUNE AND JULY MILOSEVIC MOVED AGAINST THE COMPANY THAT OWNS SERBIA'S LEADING NEWSPAPER POLITIKA WHEN ITS TELEVISION CHANNEL BEGAN TO REPORT THE NEWS MORE OBJECTIVELY ILLUSTRATING THE VULNERABILITY THE REGIME FEELS TO THE SPREAD OF INFORMATION ON TV BUT THE VERY FIRST PRIORITY FOR THE US IS TO TAKE THE LEAD IN ENDING THE ARMS EMBARGO THIS IS NOT SOMETHING THE UN CAN STOP US FROM DOING AND WE SHOULDN'T PRETEND THAT IT CAN AS I OBSERVED IN THE FIRST PART OF THIS SERIES THE EMBARGO WAS IMPOSED AT THE REQUEST OF THE SERBS BEFORE SLOVENIA BOSNIA CROATIA MACEDONIA ET AL BECAME INDEPENDENT STATES AND MEMBERS OF THE UN WITH THE RIGHT UNDER ARTICLE 51 TO RECEIVE ARMS FOR INDIVIDUAL OR COLLECTIVE SELFDEFENSE THAT IS THE ARTICLE THAT PRESIDENT CLINTON CITED WHEN HE JUSTIFIED UNILATERAL ACTION IN AIR STRIKES AGAINST BAGHDAD IF WE ASSERT THAT RIGHT AND TAKE THE LEAD IN SAYING THAT WE ARE ENDING THE EMBARGO MANY OF THE LARGE NUMBER OF UN MEMBERS THAT HAVE STRONGLY OPPOSED THE EMBARGO WILL JOIN US THIS WILL BE OF CRITICAL IMPORTANCE IN THE PROGRAM I HAVE OUTLINED OUR INTEREST IN HELPING THE VICTIMS OF SERBIAN AGGRESSION EXTENDS FAR BEYOND OUR CONCERN ABOUT THE FORMER YUGOSLAVIA'S INTERNAL OR EXTERNAL BORDERS WHERE PLAINLY IF NOT STOPPED THE AGGRESSION MAY SPREAD TO NEIGHBORS WHO ARE OUR NATO ALLIES OUR INTEREST EXTENDS BEYOND THE LIKELIHOOD THAT THE WEAKNESS AND PASSIVITY OF THE DEMOCRACIES CAN ENCOURAGE AGGRESSION LEADING ANY DICTATOR ELSEWHERE TO FEEL HE CAN GET AWAY WITH IT OUR FAILURE SO FAR IN THE FORMER YUGOSLAVIA IS THE FAILURE TO DEAL WITH THE CONSEQUENCES OF THE BREAKUP OF A COMMUNIST DICTATORSHIP IN WHICH A TYRANT IS USING THE MASK OF PROTECTING AN ETHNIC MINORITY IN A RECOGNIZED SOVEREIGN STATE TO CAPTURE LOST TERRITORY PEOPLE AND STRATEGIC FACILITIES TO CAPTURE SOME OF WHICH HE NEVER HAD IN SHORT IT HAS TO DO WITH THE REAL WORLD THAT CONFRONTS US AFTER THE COLLAPSE OF COMMUNISM WE HAD BETTER FACE IT MR WOHLSTETTER IS UNIVERSITY PROFESSOR EMERITUS UNIVERSITY OF CHICAGO SEE RELATED LETTERS LETTERS TO THE EDITOR IMF'S ECONOMIC MASSACRE IN BALKANS WSJ AUG 10 1993 9307020106 YY93 MM08 9308100003 930701 WHY WE'RE IN IT STILL BY ALBERT WOHLSTETTER IN RESPONSE TO SERBIAN CONQUEST AND ETHNIC CLEANSING IN THE FORMER YUGOSLAVIA THE EUROPEAN COMMUNITY AND THE UNITED NATIONS LED BY FRANCE BRITAIN AND THE US HAVE FOR 21 MONTHS KEPT ARMS FROM THE VICTIMS NOT THE PERPETRATORS OF ETHNIC CLEANSING IN BOSNIA OSTENSIBLY TO AVOID A MILITARY QUAGMIRE AND TO STOP THE KILLING THE WEST HAS BEEN DISARMING THE VICTIMS FURTHER AND HERDING THEM INTO ETHNICALLY MIXED SAFE HAVENS CIRCLED BY SERBIAN ARTILLERYTHAT CONTINUES TO BOMBARD PLAYGROUNDS FIRSTAID STATIONS SOCCER FIELDS AND OTHER PLACES WHERE CIVILIANS MEET AND LIVE SUCH HAVENS NEED MILITARY PROTECTION FOOD SANITATION AND MEDICAL AID IN PERPETUITY SO WILL THE ETHNICALLY PURE GHETTO PROPOSED BY THE PRESIDENTS OF SERBIA AND CROATIA AND ACCEPTED BY THE EC TO CONTAIN ALL MUSLIM BOSNIANS WHO HAVE NOT BEEN KILLED OR DRIVEN OUT OF BOSNIA IT IS THIS DEFENSELESS FINAL RESIDUE OF ETHNIC CLEANSING THAT THE EC NOW URGES AN UNWILLING BOSNIAN GOVERNMENT TO ACCEPT THE US HAS REFUSED TO PUT AMERICAN SOLDIERS ON THE GROUND TO DETER CONTINUED SERBIAN ATTACKS ON BOSNIA A REPUBLIC THE US RECOGNIZES AS SOVEREIGN BUT TO DETER FURTHER SERBIAN EXPANSION WE ARE PLACING THEM ON THE GROUND IN MACEDONIA A FORMER YUGOSLAVIAN REPUBLIC WE HAVE REFUSED TO RECOGNIZE BECAUSE GREECE OBJECTS IN THE COURSE OF A DEADLY WAR THAT HAS NO NATURAL BOUNDARIES AND HAS SO FAR RANGED FROM SLOVENIA TO CROATIA TO BOSNIA WE ARE ADDING OUR OWN SOLDIERS SAILORS AND AIRMEN INCREMENTALLY TO A UN MILITARY FORCE NOMINALLY DEVOTED TO PROTECTING BESIEGED CIVILIANS BUT ACTUALLY AUTHORIZED TO PROTECT ONLY ITSELF IN SHORT WE ARE COMMITTING OUR SOLDIERS WITH NO CLEAR AMERICAN PURPOSE AND NO CLEAR WAY OUT WE ARE NOT ESCAPING THE QUAGMIRE THIS IS THE QUAGMIRE IF THE US DOESN'T WANT TO PROTECT A REMNANT OF BOSNIA FOREVER IT IS RIGHT AND IN OUR INTEREST TO ALLOW IT TO DEFEND ITSELF TO REVERSE OUR PRACTICE OF KEEPING BOSNIA MORE WEAKLY ARMED THAN ITS ATTACKER BOTH OUR INTERESTS AND THE DISASTERS OF US AND EC POLICY IN THE BALKANS STRETCH FAR BEYOND THE BALKANS OUR PAST POLICY ENCOURAGES NATIONALISTS IN OTHER FORMER COMMUNIST DICTATORSHIPS NOW BROKEN INTO INDEPENDENT STATES TO USE THE PRETEXT OF DEFENDING THEIR OWN MINORITIES IN THESE NEW STATES TO THREATEN AND PREPARE TO RECAPTURE PEOPLE TERRITORIES AND STRATEGIC FACILITIES THEY HAVE LOST BEFORE SAYING WHAT ELSE WE COULD HAVE DONE HOWEVER AND WHAT WE CAN DO IT'S ESSENTIAL TO DISENTANGLE FACT FROM FICTION IN THE BALKAN RECORD THE VANCEOWEN PLAN PUT FORWARD BY THE UN AND THE EC WITH US SUPPORT CONCEDED TO THE SERBS 40 OF THE TERRITORY THEY HAD CONQUERED THE UN AND THE EC HAVE CONTINUED TO PREVENT BOSNIA FROM DEFENDING ITS CITIZENS AND TERRITORY AGAINST CONQUEST BY THE SERBS AND THE SERBS HAVE PERSISTED IN EXPANDING THEIR CONQUEST IN SEPTEMBER 1991 EVEN AS OTHER COMMUNIST DICTATORSHIPS WERE BREAKING INTO SEPARATE STATES AND MOVING UNCERTAINLY TOWARD DEMOCRACY PRIVATE OWNERSHIP AND FREE MARKETS THE US AND THE ECLED THE UN TO IMPOSE AN ARMS EMBARGO ASKED FOR IT SHOULD BE EMPHASIZED BY THE SERBS IN THE FECKLESS HOPE OF KEEPING TOGETHER A YUGOSLAVIAN DICTATORSHIP BY THEN UNDER THE DOMINANCE OF THE PANSERBIAN SLOBODAN MILOSEVIC PRESIDENT CLINTON SAYS HE EARNESTLY WANTS TO LIFT THE EMBARGO THAT KEEPS THE BOSNIANS DEFENSELESS AGAINST SERBIAN ASSAULT BUT CAN'T BECAUSE WE AGREED TO IT IN UN RESOLUTION 713 BUT UN 713 IS A THIN PRETEXT FOR INACTION MILOSEVIC WANTED UN 713 BECAUSE A CONTINUING MONOPOLY OF HEAVY GUNS AND ARMOR MADE IT EASIER FOR HIS FEDERAL ARMY TO COMPLETE HIS PROGRAM OF ETHNIC CLEANSING UN 713 REFERS TO YUGOSLAVIA WHICH WELCOMED IT NOT TO BOSNIA CROATIA OR ANY OF THE REPUBLICS THAT HAVE SINCE BEEN RECOGNIZED BY THE US AND THE EC AND ACCEPTED AS MEMBERS BY THE UN THE UN CHARTER IT SHOULD BE NOTED ASSURES ALL MEMBERS THE RIGHT TO SEEK AND RECEIVE ARMS FOR INDIVIDUAL OR COLLECTIVE SELFDEFENSE WE DON'T NEED A CONSENSUS OF ALL OTHER COUNTRIES TO BRING AN EMBARGO TO AN END THE US CAN BREAK IT ALONE IF THIS OR THE PRECEDING ADMINISTRATION HAD ANY GENUINE DESIRE TO LET THE BOSNIANS DEFEND THEMSELVES IT WOULD HAVE SIMPLY SAID THAT NO ONE IS OBLIGED TO CONTINUE AN EMBARGO THAT PREVENTS A MEMBER OF THE UN FROMDEFENDING ITSELF THE MANY COUNTRIES THAT OPPOSE THE EMBARGO WOULD FOLLOW OUR LEAD MOREOVER SINCE SECRETARY OF STATE WARREN CHRISTOPHER HAS DETAILED A LIST OF SERBIAN ATROCITIES THAT ARE PLAINLY STATEDIRECTED AND FIT THE UN CHARTER'S DEFINITION OF GENOCIDE WE SHOULD STRESS THAT WE HAVE THE CONTRARY OBLIGATION UNDER ARTICLE 1 OF THE CHARTER NOT TO AID SERBIAN GENOCIDE IN BOSNIA BUT TO STOP IT IT IS THOSE WHO CONTINUE TO IMPOSE AN EMBARGO THAT MAINTAINS THE SERBIAN MONOPOLY OF HEAVY ARTILLERY AND ARMOR WHO BLATANTLY VIOLATE THE UN CHARTER IT'S FAMILIAR WISDOM THAT THE USE OF MILITARY FORCE NEEDS TO BE DIRECTED TO CLEAR AND USEFUL POLITICAL ENDS IT SHOULD BE EVEN MORE OBVIOUS THAT POLITICAL ACTS EMBARGOES NEGOTIATIONS PRESSURES AND THE LIKE NEED TO BE DIRECTED AT CLEAR FEASIBLE AND DESIRABLE POLITICAL GOALS BUT IT ISN'T WHEN JAMES BAKER WENT TO BELGRADE IN JUNE 1991 HE TOLD THE PANSERBIAN NATIONALISTS THAT THE US SUPPORTED THE INTEGRITY OF YUGOSLAVIA EVEN THOUGH THE CROATIANS HAD VOTED OVERWHELMINGLY TO START THE LONG CONSTITUTIONAL PROCESS OF SEPARATION MR BAKER SAID THE US WOULD NOT RECOGNIZE CROATIA OR SLOVENIA LONG BEFORE THATMILOSEVIC HAD ENDED THE CONSTITUTIONAL AUTONOMY OF KOSOVO AND VOJVODINA WITHIN SERBIA AND USED HIS FEDERAL ARMY TO AID A LOCAL VIOLENT SEIZURE OF TWO PARTS OF CROATIA TO BE LABELED THE SERBIAN REPUBLIC OF KRAJINA AND SERBIAN SLAVONIA FIVE DAYS AFTER MR BAKER'S REASSURING VISIT TO BELGRADE THE YUGOSLAV PEOPLE'S ARMY INVADED SLOVENIA AND SHORTLY AFTER CROATIA NOW TWO YEARS LATER UNEC MEDIATORS ADMIT THAT THEY HAVE FAILED TOTALLY TO MODIFY WHAT MILOSEVIC HAS SEIZED IN BOSNIA AND MR CHRISTOPHER REPEATS A NOW WIDESPREAD MYTH PROPAGATED BY FRANCOIS MITTERRAND AND JOHN MAJOR IT WAS GERMANY'S QUICK RECOGNITION OF CROATIAN AND BOSNIAN INDEPENDENCE HE SUGGESTS THAT WAS RESPONSIBLE FOR THE DEBACLE MR CHRISTOPHER WOULD BE CLOSER TO THE TRUTH IF HE SAID THAT IT WAS US AND EC ASSURANCE TO BELGRADE THAT WE WOULD NOT RECOGNIZE THE SECESSION OF ANY REPUBLIC AND SO WOULD NOT ALLOW THE REPUBLICS TO ARM THEMSELVES THAT ENCOURAGED THREE SUCCESSIVE INVASIONS BY MILOSEVIC'S YUGOSLAV PEOPLE'S ARMY BY SUSTAINING AN ARMS EMBARGO EVEN AFTER WE RECOGNIZED THE INDEPENDENCE OF THE REPUBLICS WE MADE IT LIKELY THAT THE CONFLICT WOULD CONTINUE TO SPREAD MR BAKER AND MR BUSH LIKE JOHN MAJOR AND FRANCOIS MITTERRANDWANTED TO HOLD YUGOSLAVIA TOGETHER LARGELY BECAUSE THEY WANTED TO DISCOURAGE THE DISINTEGRATION OF GORBACHEV'S SOVIET UNION YET IT WAS NEITHER FEASIBLE NOR IN THE INTERESTS OF THE DEMOCRACIES TO MAINTAIN SOVIET RULE THE COLLAPSE THEN IMMINENT OF THE SOVIET UNION DID FAR MORE TO REDUCE SOVIET MILITARY POWER AND THE THREATS THAT HAD PREOCCUPIED THE WEST THAN ANY LIKELY ARMS AGREEMENT WHAT IS MORE A WESTERNAIDED SERBIAN SUCCESS IN RETAKING TERRITORY FROM A SOVEREIGN STATE RECOGNIZED BY THE INTERNATIONAL COMMUNITY CAN ONLY INCREASE THE LIKELIHOOD THAT PANRUSSIAN NATIONALISTS MAY TRY THE SAME IN SOME OF THE NOWSOVEREIGN FORMER SOVIET REPUBLICS THIS SHOULD DISTURB THE WEST IT GREATLY DISTURBS THE FORMER SOVIET REPUBLICS MANY OF THEM LIKE ESTONIA WHICH RECEIVED AN OMINOUS WARNING FROM MOSCOW LAST WEEK REGARD THE RUSSIAN TROOPS ON THEIR TERRITORY AS THEIR PRINCIPAL PROBLEM AND RUSSIAN INTERVENTION TO DEFEND RUSSIAN MINORITIES AS THEIR MAIN THREAT FOR THAT REASON ESPECIALLY UKRAINE RESISTS GIVING UP NUCLEAR WEAPONS STROBE TALBOTT OUR PRINCIPAL AMBASSADOR ON SUCH MATTERS HAS SAID THAT IT NEEDN'T WORRY WE'D BE WILLING TO MEDIATE ANY CONFLICT AFTER OUR LETHAL MEDIATION IN BOSNIA THAT MUST MAKE UKRAINIANS FEEL WARM ALL OVER WITH SUCH MEDIATION IN MIND THEY ARE LIKELY TO HOLDON TO NUCLEAR WEAPONS FOR DEAR LIFE MR CLINTON HAD BEEN PROMISING AGGRESSIVE MOVES TO LIFT THE EMBARGO AND USE AIR STRIKES EVER SINCE AUGUST 1992 MR CHRISTOPHER WARNED THE SERBS THAT ONLY THEIR DEEDS NOT THEIR WORDS WOULD COUNT BUT THE SERBS DECIDED MR CHRISTOPHER'S WARNINGS WERE JUST WORDS AND THEY WERE RIGHT ON FEB 10 WHEN MR CLINTON SEEMED ON THE EDGE OF ACTING AGGRESSIVELY MR CHRISTOPHER INTERVENED FIRST HE POINTED OUT THAT THERE WAS SOMETHING IN BETWEEN ACTING UNILATERALLY AND INACTION TO ACT MULTILATERALLY IN CONCERT WITH OUR ALLIES IN EUROPE BUT THERE IS NO EUROPE CERTAINLY NO UNITED EUROPE FOR THE NEW UNITED EUROPE AS FOR THE OLD UNITED STATES IT SEEMS THAT NOBODY COULD DO ANYTHING HERE ONE MORE CASE OF MULTILATERAL INACTION MR CHRISTOPHER'S SECOND JOKER EVEN MORE OBVIOUSLY ASSURED INACTION IT SEEMS WE COULD ACT TO STOP MILOSEVIC ONLY IF MILOSEVIC AGREED MR CHRISTOPHER SAID IN FEBRUARY 1992 THE BEST APPROACH IS TO SEEK AN AGREEMENT OF THE PARTIES HE WAS REPEATING A POINT LORD CARRINGTON MADE AT THE FIRST EC CONFERENCE TO MAKE PEACE IN YUGOSLAVIA IN THE SUMMER OF 1991 MILOSEVIC HAD SHORTLY BEFORE INVADED SLOVENIA AND THEN CROATIA LORD CARRINGTON SAID WITH SOMEIMPATIENCE YOU CAN'T HAVE A PEACE CONFERENCE IN WHICH PEOPLE DON'T WANT TO AGREE OF COURSE IF MILOSEVIC HAD AGREED WITH THE CROATIAN AND SLOVENIAN GOVERNMENTS THAT HE SHOULD STOP HIS INVASIONS AND WITHDRAW HIS FEDERAL ARMY THE EC WOULDN'T HAVE HAD TO BOTHER WITH A CONFERENCE FRANCE AND BRITAIN SAY ARMING THE VICTIMS WOULD ENDANGER HUMANITARIAN AID TO THEM IF THIS GIVES HUMANITARIANISM A BAD NAME NEITHER DOES IT HELP THE REPUTATION FOR REALISM OF WESTERN NEGOTIATORS WHO THINK OF THEMSELVES AS PRAGMATISTS THE SAME SATELLITES THAT AGAIN AND AGAIN OVER THE PAST TWO YEARS HAVE TRANSMITTED FROM BOSNIA HORRIFYING PICTURES OF CHILDREN WITH MISSING LIMBS AND BURNEDOUT FACES HAVE ALSO SHOWN THE UNASHAMED FACES OF THESE WESTERN MEDIATORS EVERHOPEFUL THAT THE NEXT TEST OF MILOSEVIC'S SINCERITY WILL SUCCEED THEY HAVE BEEN BRAZENLY SELFCONFIDENT REPEATEDLY HOPEFUL AND REPEATEDLY DISAPPOINTED IT'S HARD TO SEPARATE REALPOLITIK FROM MORALPOLITIK WHEN THE TECHNOLOGICAL REVOLUTION BRINGS BOTH THE HORRORS OF ETHNIC CLEANSING INTO OUR LIVING ROOMS AND THE GRIM FARCE OF A MEDIATION THAT ONLY ENCOURAGES THE CONTINUATION OF ETHNIC CLEANSING IT SOMETIMES SEEMS THAT THESE REALISTS ARE OUT TO TEST MILOSEVIC'S SINCERITY UNTILTHE DESTRUCTION OF THE LAST BOSNIAN CHILD THE DANE WHO HELD THE ROTATING EC PRESIDENCY LAST MONTH ARGUES THAT LIFTING THE EMBARGO TO LET THE BOSNIANS DEFEND THEMSELVES WILL ONLY LEAD TO MORE FIGHTING MR MAJOR AND HIS MINISTERS HAVE BEEN MAKING THAT ARGUMENT FOR MORE THAN A YEAR THEY SHOULD THINK ABOUT HOW THE US PROLONGED WORLD WAR II ALL THE WAY TO 1945 BY TRANSFERRING SHIPS TO BRITAIN EARLY IN 1941 AND PERSISTED IN SENDING CONVOYS TO KEEP ENGLAND FIGHTING HITLER MIGHT HAVE ENDED THE WAR HANDILY IN 1941 OR '42 THE EVERHOPEFUL REALISTS HAVE A HARD TIME GETTING EVEN THE PAST STRAIGHT ON BOSNIA THE MYTH THAT IS NOW SPREADING ABOUT GERMAN WAR GUILT IN BOSNIA EXCULPATES BRITAIN FRANCE AND THE US AND DISTORTS THE PAST IN A WAY THAT IS LIKELY TO CONTINUE TO DIVIDE THE ALLIANCE MILOSEVIC'S PROGRAM MADE HIS ETHNIC CLEANSING INEVITABLE GIVEN THE COMPLEX HISTORY OF THE POPULATION OF THE OLD YUGOSLAVIA UNDER OTTOMAN RULE FOR HUNDREDS OF YEARS SUBJECTS IDENTIFIED THEMSELVES NOT BY PLACE OF RESIDENCE BUT AS MEMBERS OF COMMUNITIES OF FAITH MUSLIMS WHO OF COURSE HAD PRIMACY ORTHODOX CHRISTIANS CATHOLICS JEWS ETC THESE COMMUNITIES EXISTED AS SETS OF ISLANDS OFTEN WIDELY SEPARATED FOR MILOSEVIC TO UNITE ALL SERBS IN ONE CONTIGUOUS GREATER SERBIA THEN HAD TO MEAN CLEANSING ALL THE CONNECTING AREAS OF NONSERBS YUGOSLAVIA'S INTERNAL AND EXTERNAL BORDERS ARE EVEN MORE ARBITRARY THAN THOSE OF BOSNIA SERBS IN 1991 MADE UP A SMALLER PROPORTION OF THE TOTAL YUGOSLAVIAN POPULATION 37 THAN THE 44 MUSLIM PLURALITY IN BOSNIA THERE IS NOTHING IN THE NOW WIDESPREAD BELIEF THAT THE YUGOSLAVIAN HUMPTY DUMPTY MIGHT HAVE STAYED ALL IN ONE PIECE IF ONLY GERMANY HADN'T RECOGNIZED THE INDEPENDENCE OF SLOVENIA AND CROATIA IN JUNE 1991 GERMANY DIDN'T RECOGNIZE THEM UNTIL SIX MONTHS LATER THE IMMENSE RESPONSIBILITY ASSUMED BY THE BRITISH FRENCH AND AMERICANS DURING THESE BLOODY SERBIAN INVASIONS IS FAR FROM OVER THE CURRENT PROPOSAL FOR PARTITION ADVANCED BY MILOSEVIC AND PRESSED ON BOSNIA BY THE EC AMOUNTS TO PURIFYING BOSNIA AND EXCEPT FOR A VERY SMALL DEPENDENT AND DEFENSELESS REMNANT DIVIDING IT BETWEEN SERBIA AND CROATIA THAT PARTITION IS UNLIKELY TO STAY PUT IT WILL SATISFY NO ONE IT WON'T PREVENT SERBIA FROM CONTINUING TO MENACE CROATIA THE GEOGRAPHY OF WHICH IS A LONG AND VULNERABLE CRESCENT WITH A LONG THIN FINGER ON THE ADRIATIC COAST NO LONGER SEPARATED FROM SERBIA BYWHAT WAS ONCE A SUBSTANTIAL UNDIVIDED BOSNIAHERZEGOVINA AND MILOSEVIC IS UNLIKELY TO BE SATISFIED BY THE 70 OR SO OF BOSNIA AND THE THIRD OF CROATIA HE HAS SO FAR GRABBED THE CONFLICT IS LIKELY TO SPILL OVER INTO OTHER FORMER YUGOSLAVIAN REPUBLICS AND QUITE POSSIBLY ALSO INTO NEIGHBORING COUNTRIES THIS RESOLUTION OF THE CONFLICT IN BOSNIA RESOLVES NOTHING IT HAS ALREADY FIXED THE AMERICANS AND THE EUROPEANS WITH A RESPONSIBILITY FOR DEPLOYING MILITARY FORCE AND AID IN MACEDONIA AS WELL AS BOSNIA AND CROATIA WITHOUT ANY FORESEEABLE END MR WOHLSTETTER IS UNIVERSITY PROFESSOR EMERITUS UNIVERSITY OF CHICAGO SEPTEMBER SERBIAN ACADEMY OF SCIENCES DESCRIBES THE SERBS AS VICTIMS IN TITO'S YUGOSLAV FEDERATION IT CLAIMS THAT SERBIA'S STATEHOOD IS WEAKENED BY KOSOVO AND VOJVODINA TWO NONSERB AUTONOMOUS REGIONS WITHIN SERBIA THAT ALBANIANS THREATEN THE GENOCIDE OF SERBS IN KOSOVO THAT THE RICH REPUBLICS OF SLOVENIA AND CROATIA CONSPIRE TO KEEP SERBIA POOR AND THAT TITO UNJUSTLY LEFT MANY SERBS OUTSIDE SERBIA ALL THIS IMPLIES A SERB CLAIM TO MANY SERBIAN ENCLAVES FAR FROM SERBIA THAT HAVE NEVER BEEN PART OF SERBIA MILOSEVIC SEIZES POWER IN THE SERBIAN COMMUNIST PARTY EXPLOITING THE PARANOID NATIONALISM ILLUSTRATED BY THE ACADEMY'S STATEMENT MARCH MILOSEVIC ENDS THE CONSTITUTIONAL AUTONOMY OF KOSOVO AND VOJVODINA JUNE MILOSEVIC'S PLANS FOR TAKING OVER CROATIA BEGIN HE STIRSUP STREET MOBS AND ARMED UPRISINGS IN KNIN CAPITAL OF KRAJINA A REGION OF CROATIA MARCH AND APRIL SLOVENIA AND CROATIA HOLD FIRST MULTIPARTY ELECTIONS IN NEARLY 50 YEARS NONCOMMUNIST DEMOCRATIC COALITIONS WIN SIX MONTHS LATER SIMILAR COALITIONS WIN IN MACEDONIA AND BOSNIA JULY MILOSEVIC USES FEDERAL ARMY TO ESTABLISH A SERB ADMINISTRATION IN KRAJINA OCTOBER EC SUMMIT DECLARES SUPPORT FOR A UNIFIED YUGOSLAVIA DEC 9 AND 23 IN SERBIA AND MONTENEGRO COMMUNISTS RENAMING THEMSELVES SOCIALISTS AND USING ULTRANATIONALIST APPEALS OVER CONTROLLED MASS MEDIA WIN IN MULTIPARTY ELECTIONS DEC 23 IN SLOVENIA 90 OF ELIGIBLE VOTERS HOLD PLEBISCITEAUTHORIZING SLOVENIAN PARLIAMENT TO DECLARE INDEPENDENCE IN SIX MONTHS IF NEGOTIATIONS HAVE NOT YIELDED A NEW YUGOSLAVIAN CONFEDERATION THAT WOULD ALLOW AUTONOMY FOR A DEMOCRATIC SLOVENIA FEBRUARY MILOSEVIC INSTIGATES UPRISINGS IN SLAVONIA A REGION OF CROATIA APRIL MILOSEVIC DECLARES THE CROATIAN TERRITORY OF KRAJINA AN AUTONOMOUS REGION OF SERBIA MAY 30 CROATIA ANNOUNCES ITS INTENTION TO SECEDE IF A CONFEDERATION ACCORD IS NOT REACHED BY JUNE 15 11 DAYS BEFORE THE SLOVENIAN DEADLINE JUNE 21 BAKER GOES TO BELGRADE DECLARING SUPPORT FOR A UNIFIED YUGOSLAVIA SAYS US WILL NOT RECOGNIZE SLOVENIA OR CROATIA JUNE 25 CROATIA AND SLOVENIA DECLARE INDEPENDENCE JUNE 27 CROATIA AND SLOVENIA AT EC REQUEST AGREE TO SUSPEND IMPLEMENTATION OF THEIR INDEPENDENCE FOR SIX MONTHS ON THE SAME DAY MILOSEVIC'S FEDERAL ARMY INVADES SLOVENIA WHICH HAD PREPARED TO DEFEND ITSELF FORCING SERBIAN WITHDRAWAL IN LESS THAN TWO WEEKS MIDJULY MILOSEVIC'S FEDERAL ARMY INVADES CROATIA SUMMER FIRST EC CONFERENCE ON PEACE IN YUGOSLAVIA SEPTEMBER UN IMPOSES ARMS EMBARGO ON YUGOSLAVIA AT REQUEST OF ITS SERBDOMINATED GOVERNMENT SEPTEMBER MILOSEVIC BEGINS TO TARGET BOSNIA DECLARES SEVERAL SERB AUTONOMOUS REGIONS IN BOSNIA SEPTEMBER SERBS SHELL CROATIAN CITIES OF VUKOVAR AND OSIJEK OCT 7 SERBS ATTACK ZAGREB CAPITAL OF CROATIA OCT 8 CROATIA AND SLOVENIA RESUME MOVEMENT TOWARD INDEPENDENCE DECEMBER SERBS SHELL CROATIAN CITY OF DUBROVNIK CROATIAN CITY OF VUKOVAR SURRENDERS DEC 23 GERMANY RECOGNIZES SLOVENIA AND CROATIA SIX MONTHS AFTER THE SERBS INVADED SLOVENIA JANUARY EC RECOGNIZES SLOVENIA AND CROATIA APRIL 7 US RECOGNIZES THE MULTIETHNIC REPUBLIC OF BOSNIA SEE RELATED LETTERS LETTERS TO THE EDITOR IMF'S ECONOMIC MASSACRE IN BALKANS WSJ AUG 10 1993 9307010024 YY93 MM08 9308090169 930809 LEISURE & ARTS ON RECORD MIKE SCOTT TO MALCOLM X BY JIM FUSILLI THE WATERBOYS' LATEST ALBUM DREAM HARDER GEFFEN FINDS LEADER MIKE SCOTT RETURNING TO HIS ROCKING ROOTS WHILE NOT ALTOGETHER ABANDONING THE INFLUENCES OF CELTIC MUSIC THAT ENLIVENED THE GROUP'S LATE'80S RECORDINGS THE RESULTING AMALGAM PRESENTS SCOTT IN THE FINEST SINGERSONGWRITER TRADITION ROCKING AS HE CONTEMPLATES THE SUBJECTS OF HIS REFLECTION HERE ARE THE MYSTERIES OF THE UNIVERSE FROM SOMETHING AS MINOR AS CIRCLES IN A FIELD OF CORN TO HIS SPIRITUAL REBIRTH I JUST FOUND GOD HE ANNOUNCES IN GLASTONBURY SONG ADDING THERE IS A GREEN HILL FAR AWAY/I'M GOING BACK THERE ONE FINE DAY IN THE CHARGING THE NEW LIFE HE GLADLY ACKNOWLEDGES HIS NEW POINT OF VIEW ALL PREVIOUS DISPATCHES ARE OBSOLETE/THE NEW LIFE STARTS RIGHT HERE HE PURSUES THE MYTHIC IN THE RETURN OF PAN AS HE VISITS ARCADIA TO CONFRONT THE LEGEND SOME SAY THE GODS ARE JUST A MYTH/BUT GUESS WHO I'VE BEEN DANCING WITH THE TRACKS BEHIND THE LYRICS ARE FRESH AND POWERFUL LOTS OF APPEALING GUITAR FLASH BY SCOTT AND CHRIS BRUCE AND A TRADITIONAL ROCK LINEUP IS AUGMENTED BY SUCH INSTRUMENTS AS A SITAR GREEK CLARINET CELLO AND TALKING DRUMS KARL WALLINGER SCOTT'S FORMER COLLEAGUE IN THE WATERBOYS HAS A FINE NEW RECORDING WITH HIS GROUP WORLD PARTY BANG CHRYSALIS ALSO IS CONCERNED WITH SPIRITUAL MATTERS THOUGH WALLINGER'S INVESTIGATION IS CLOAKED IN HIS POP SENSIBILITY DELIBERATELY DERIVATIVE VOCALS AND JAUNDICED VIEW OF SUCH MUSINGS FAITH/YOU DON'T REALLY NEED TO BELIEVE IT/'CAUSE THEY'RE JUST GOING TO DECEIVE YOU HE SINGS IN SOONER OR LATER ADDING I CAN FIND MYSELF IN MY OWN MIND IN GIVE IT ALL AWAY HE ADVISES A FRIEND NOT TO SCORN EARTHLY PLEASURES IT SEEMS TO ME YOU'RE KILLING ALL THE THINGS YOU LOVE THE MOST IN IS IT LIKE TODAY WE FIND AN ASTRONAUT COMING FACETOFACE WITH GOD WHO SAYS I'M REALLY WORRIED ABOUT MY CREATION/HOW DID IT COME TO THIS YOU'RE REALLY KILLING ME YOU KNOW WORLD PARTY'S MUSIC EMPLOYS A RICH KALEIDOSCOPE OF SOUNDS AND BEATLESQUE HARMONIES THAT CONTRIBUTE TO THE SENSE OF FUN AS THE LEADERS OF STEELY DAN DONALD FAGEN AND WALTER BECKER TURNED OUT MUSIC THAT DEVOLVED FROM BITING ROCK INTO A DETACHED JAZZPOP HYBRID THE TWO ARE AT IT AGAIN ON FAGEN'S NEW RELEASE KAMAKIRIAD REPRISE PRODUCED BY BECKER THE RECORDING IS A COOL HYBRID VERY MUCH IN STEELY DAN'S LATTERDAY MOLD UNDER FAGEN'S THIN DRONING VOCALS THERE ARE SNAPPY GUITAR PARTS INTERACTING WITH STRONG STRAIGHTAHEAD DRUMMING ELECTRIC KEYBOARDS AND THE OCCASIONAL ORGAN LICK LANGUID UNISON LINES BY THE HORN SECTION AND A CHORUS OF SOUL SINGERS ONCE AGAIN EACH PART IS UNDER TIGHT CONTROL WITH BARELY A NOTE OUT OF PLACE ANOTHER FAMILIAR TRAIT SHOWCASE PERFORMANCES BY THE SESSION PLAYERS IN THIS CASE TENOR SAXOPHONISTS ILLINOIS ELOHAINU ON COUNTERMOON AND CORNELIUS BUMPUS ON FLORIDA ROOM AND ON THE DUNES BECKER EXECUTES AN UNEXPECTEDLY TASTY PERFORMANCE ON BASS AND IS A RELIABLE SOLOIST ON GUITAR THE RECORDING'S NARRATIVE A DESTINEDFORDISASTER JOURNEY AT THE DAWN OF THE 21ST CENTURY IN A STEAMDRIVEN CAR WITH A BUILTIN HYDROPONIC GARDEN PERMITS FAGEN AND BECKER TO DEMONSTRATE THEIR SKILL AS CAUSTIC LYRICISTS WITH THE BROADWAY PRODUCTION OF TOMMY BEHIND HIM AND THE STAGING OF HIS UNDERRATED 1989 RECORDING THE IRON MAN ATLANTIC UP AHEAD PETE TOWNSHEND INVESTIGATES ANOTHER TYPE OF THEATER WITH HIS LATEST PROJECT PSYCHODERELICT ATLANTIC A SORT OF AURAL ROCK DRAMA NOT UNLIKE AN UPDATED VERSION OF A RADIO PLAY THE ALBUM IS REMARKABLE IN THAT IT WORKS DESPITE A SHAKY PLOT AND THREE LEAD CHARACTERS WHO ARE DISTASTEFUL AS THEY CAN BE RAY HIGH A BOOZING EGOCENTRIC FORMER ROCK IDOL WHO'S ON THE COMEBACK TRAIL RASTAS HIS TRAITOROUS MANAGER AND RUTH A GOSSIP REPORTER WHOSE UNBRIDLED VICIOUSNESS TURNS INTO FLAMING HATRED FOR HIGH THE PLOT IS PREDICTABLE RASTAS AND RUTH CONSPIRE TO HUMILIATE HIGH ENSNARLING HIM IN A PUBLIC SCANDAL THEY DO SO TO REVIVE HIS CAREER ON THE EVE OF THE RERELEASE OF HIS OLD MATERIAL AND WHEN IT IS NOT IT IS JUST TOO CONTRIVED TO ACCEPT FORTUNATELY THERE'S MORE MUSIC THAN CHATTER ON PSYCHODERELICT AND THE SONGS ENRICH TOWNSHEND'S POSTWHO CATALOG DON'T TRY TO MAKE ME REAL WITH ITS ANGRY LYRICS AND TENDER BRIDGE IS TRADITIONAL TOWNSHEND AS IS I AM AFRAID A BALLAD THAT WOULD BE AT HOME ON HIS EARLIER SOLO RECORDINGS THERE'S SOME DEFT ACOUSTIC GUITAR PLAYING IN OUTLIVE THE DINOSAUR AND THE STRAIGHTON ROCKER I WANT THAT THING IS A POWERHOUSE COMPOSER AND TRUMPETER TERENCE BLANCHARD'S LATEST THE MALCOLM X JAZZ SUITE COLUMBIA IS A LEAN FIERY COLLECTION OF MEMORABLE COMPOSITIONS AND PERFORMANCES THE SUITE IS A VIRTUALLY SEAMLESS SERIES OF 10 NUMBERS HELD TOGETHER NOT BY A RECURRING THEME BUT BY THE DEPTH AND INTENSITY OF THE WORK IT OPENS WITH A LOOSE EXCHANGE BETWEEN BLANCHARD AND SAXOPHONIST SAM NEWSOME WHILE PIANIST BRUCE BATH AND DRUMMER TROY DAVIS MOVE FROM ANGUISHED POUNDING TO SAD GENTLE EMBELLISHMENTS THE SECOND NUMBER MELODY FOR LAURA PERMITS THE QUINTET TO STRETCH AND THE SOLOS ARE COMPACT AND PASSIONATE THE MOOD SUDDENLY BRIGHTENS AND BLANCHARD AND NEWSOME USE QUICK BURSTS TO PROPEL THEME FOR ELIJAH JUST AS SUDDENLY THERE'S ANOTHER BLUES BEFORE DAVIS CONTRIBUTES AN EXPLOSIVE SOLO TO INTRODUCE THE UPTEMPO THE NATION FED BY NEWSOME AND BASSIST TARUS MATEEN MALCOLM MAKES HAJJ A POSTBOP ERA MAELSTROM BRIDGES THE LOVELY BALLAD BETTY'S THEME AND THE REGAL MALCOLM AT PEACE WITH ITS LONG SENSITIVE SOLO BY BATH THESE SUDDEN SHIFTS AND THE FULLNESS OF BLANCHARD'S COMPOSITIONS CONVEY THE TUMULT THE ADVENTURE THE SENSE OF PURPOSE IN THE LIFE OF MALCOLM X MEANWHILE THE TRUMPET PLAYING BY THIS ART BLAKEY ALUMNUS IS UP TO THE QUALITY OF HIS WRITING ON BLUES FOR MALCOLM BLANCHARD EXECUTES A SOLO THAT'S AS PERFECT AS THRILLING AS YOU'LL FIND 9308090168 930809 GM TRIES TO HEAL SUPPLIER RELATIONS WHILE STICKING TO COSTCUTTING GOAL BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL TRAVERSE CITY MICH GENERAL MOTORS CORP IS SEEKING TO IMPROVE ITS CHILLY RELATIONS WITH SUPPLIERS BUT IS STICKING WITH ITS GOAL OF CUTTING ITS 35 BILLION NORTH AMERICAN PURCHASING BUDGET BY 4 BILLION ANNUALLY DESPITE AN ATTEMPT BY GM'S NEW PURCHASING CHIEF TO SELL THE PROGRAM TO SUPPLIERS MEETING HERE MANY OF THEM ARE STILL SKEPTICAL ABOUT HOW THEY WILL BE TREATED IN THE AUTO MAKER'S ONGOING EFFORT TO SLASH COSTS G RICHARD WAGONER JR THE EXECUTIVE VICE PRESIDENT OVERSEEING GM'S 50 BILLION WORLDWIDE PURCHASING OPERATIONS SCORED CRUCIAL POINTS WITH THE ANXIOUS SUPPLIERS HE SPOKE SERIOUSLY ABOUT THE MISTAKES GM MADE WHEN IT SET OUT 18 MONTHS AGO TO REVAMP ITS NORTH AMERICAN PURCHASING POLICIES IT WAS AN UNUSUAL APPROACH THAT WE IMPLEMENTED QUICKLY AND WE DIDN'T DO A GOOD JOB OF EXPLAINING IT UP FRONT SAID MR WAGONER SPEAKING AT A UNIVERSITY OF MICHIGANSPONSORED INDUSTRY CONFERENCE MR WAGONER'S PRESENTATION WAS A REFRESHING MOMENT OF CANDOR STANDING OUT FROM A WEEK FILLED WITH UNEVENTFUL SPEECHES FROM BIG THREE AUTO EXECUTIVES AND INDUSTRY EXPERTS SUPPLIERS EAGERLY JOTTED DOWN MR WAGONER'S REMARKS AS THEY LISTENED TO WHAT MANY HAD TRAVELED HERE FOR A STRAIGHTFORWARD EXPLANATION OF GM'S PURCHASING PHILOSOPHY MR WAGONER SAID THE SAVINGS WOULD BE ACHIEVED BY AGGRESSIVELY SEEKING SUPPLIERS WHO CAN PROVIDE THE BEST QUALITY PRODUCT AT THE LOWEST PRICE BUT HE ADDED THE AUTO MAKER INTENDS TO PURSUE THAT AGENDA WITH A GREATER SENSITIVITY TO SUPPLIER CONCERNS WE ARE IN FAVOR OF PARTNERSHIPS WITH SUPPLIERS BUT WITH VERY VERY HIGH EXPECTATIONS MR WAGONER SAID THIS IS A MARKED DEPARTURE FROM THE POSTURE OF MR WAGONER'S PREDECESSOR AS PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA WHO IN HIS FERVENT PURSUIT OF SIMILAR AIMS OFTEN APPEARED UNINTERESTED IN THE PROFIT CONCERNS AIRED BY GM'S SUPPLIERS WITH HIS SPEECH MR WAGONER ATTEMPTED TO HEAL THE BRUISED FEELINGS OF SUPPLIERS WHO FOUND THEMSELVES HAVING TO MAKE GREATER SACRIFICES UNDER THE DIZZYING ARRAY OF CHANGES WITHIN GM'S PURCHASING DEPARTMENT MANY OF WHICH WERE INSTITUTED BY MR LOPEZ MR LOPEZ WHO LEFT GM EARLIER THIS YEAR TO WORK FOR GERMANY'S VOLKSWAGEN AG INSTITUTED A PROGRAM KNOWN AS PURCHASED INPUT CONCEPT OPTIMIZATION WITH SUPPLIERS THE PROGRAM INVOLVED SENDING GM PURCHASING EXECUTIVES TO SUPPLIER SITES WHERE THEY SCRUTINIZED A SUPPLIER'S OPERATIONS LOOKING FOR WAYS TO SLASH COSTS THOSE SAVINGS ULTIMATELY WERE PASSED ALONG TO GM IN THE FORM OF CHEAPER CONTRACTS WITH ITS SUPPLIERS SUPPLIERS HAVE SINCE COMPLAINED THAT MR LOPEZ'S STAFF WAS OVERZEALOUS IN THIS COSTCUTTING EFFORT ALTHOUGH PICOS SAVED GM BILLIONS SUPPLIERS BLAME MR LOPEZ'S ABRASIVE MANNER FOR DEMANDING MAJOR SACRIFICES WITH LITTLE OFFERED IN RETURN FOR DAMAGING RELATIONS FOR EXAMPLE JAMES J MAHONEY A MARKETING MANAGER FOR NATIONAL STEEL CORP SAID HIS COMPANY WITHHELD SHARING A STAMPING TECHNIQUE WITH GM THAT WOULD HAVE HELPED THE AUTO MAKER REDUCE ITS SCRAP METAL IN SOME CASES BY 75 THE STEEL COMPANY SAID IT FEARED GM WOULD IN TURN PASS THE INFORMATION TO A COMPETITOR OFFERING A LOWER BID WHY SHOULD WE RISK TELLING THEM OUR GOOD IDEAS MR MAHONEY SAID AT GM THERE IS NO CERTAINTY MR MAHONEY SAID MR WAGONER'S SPEECH DIDN'T CHANGE HIS FEELINGS MR WAGONER PROMISED SUPPLIERS THAT CONCERNS ABOUT SHARING PROPRIETARY TECHNOLOGY WOULD BE ADDRESSED AND GM WOULD PROTECT SUCH INFORMATION FROM COMPETITORS THERE HAVE BEEN SOME CASES WHERE WE HAVE BEEN OUT OF LINE AND WE ARE ADDRESSING IT MR WAGONER ACKNOWLEDGED INDUSTRY ANALYSTS HOWEVER REMAIN SKEPTICAL THEY WONDER IF GM IS SACRIFICING QUALITY FOR THE SAKE OF LOW COSTS THEY CONTEND THAT SWITCHING SUPPLIERS COULD ULTIMATELY INTRODUCE ERRORS IN THE MANUFACTURING PROCESS MR WAGONER HOWEVER STRESSED THAT ONLY 20 OF THE AUTO MAKER'S NORTH AMERICAN SUPPLIER BUSINESS HAS CHANGED HANDS SINCE THE IMPLEMENTATION OF PICOS 18 MONTHS AGO OTHER THAN ADOPTING A MORE CONCILIATORY STANCE TOWARD SUPPLIERS LITTLE ELSE ABOUT GM'S PURCHASING PHILOSOPHIES IS EXPECTED TO CHANGE MR WAGONER SAID 9308090167 930809 VW DISCLOSES GM DOCUMENTS WERE DESTROYED GERMAN CAR MAKER DENIES INVOLVEMENT BUT RIVAL STILL CLAIMS ESPIONAGE BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL VOLKSWAGEN AG ACKNOWLEDGED THAT POTENTIALLY SENSITIVE GENERAL MOTORS CORP DOCUMENTS WERE DESTROYED BY FORMER GM EMPLOYEES SOON AFTER THEY JOINED VW VW SAID THE DISCLOSURE ONLY CONFIRMED ITS LACK OF INVOLVEMENT IN THE MATTER BUT GM SAID IT SUPPORTED ITS ALLEGATIONS OF INDUSTRIAL ESPIONAGE SEPARATELY VW REITERATED ITS SUPPORT FOR ITS PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA WHO IS AT THE HEART OF THE CONTROVERSY OVER THE DOCUMENTS AND HAS MAINTAINED HIS INNOCENCE IN A STATEMENT FOLLOWING AN EMERGENCY MEETING OF THE COMPANY'S SUPERVISORY BOARD FRIDAY VW EMPHASIZED THAT NONE OF THE GM DOCUMENTS EVER CAME INTO THE POSSESSION OF VOLKSWAGEN AG AND THAT ITS OWN INTERNAL INVESTIGATION TURNED UP NO FINDINGS WHICH COULD WARRANT THE ACCUSATION OF INDUSTRIAL ESPIONAGE VW SAID THE FORMER GM EMPLOYEES DESTROYED DOCUMENTS WHICH COULD POSSIBLY BE ATTRIBUTED TO GM AND COULD CONTAIN CRITICAL INFORMATION IN ORDER TO REMOVE ANY DANGER OF DISTRIBUTION AT VOLKSWAGEN CONCEDING THAT IT DOESN'T LOOK PRETTY AN INDIVIDUAL CLOSE TO THE VW SUPERVISORY BOARD STRESSED THAT THE DOCUMENT SHREDDING WAS DONE BY FORMER GM EMPLOYEES WITHOUT VW'S INSTRUCTIONS ADVICE OR KNOWLEDGE THE DOCUMENT DESTRUCTION MAY INDICATE THAT THE YOUNG MEN DIDN'T ACT CORRECTLY TOWARD THEIR FORMER EMPLOYER BUT THAT MUST BE VIEWED SEPARATELY FROM THE QUESTION OF WHETHER THE DOCUMENTS WERE TAKEN TO UNFAIRLY BENEFIT VW IN COMPETITION WITH GM THE INDIVIDUAL SAID BUT GM'S GERMAN SUBSIDIARY ADAM OPEL AG SEIZED ON WHAT IT VIEWED AS THE ADMISSION AT LONG LAST BY THE VW SUPERVISORY BOARD THAT CONFIDENTIAL OPEL DOCUMENTS WERE IN THE HANDS OF VW EMPLOYEES AND THEREFORE TECHNICALLY AND LEGALLY IN THE POSSESSION AND CONTROL OF VOLKSWAGEN AG VW SAID DOCUMENTS WERE DESTROYED NOT ONLY IN WIESBADEN GERMANY WHERE TWO FORMER GM EMPLOYEES LIVED BUT ALSO IN A VWOWNED HOTEL IN WOLFSBURG GERMANY WHERE VW HAS ITS HEADQUARTERS OPEL FURTHER BLASTED VW'S STATEMENTS AS AN UNTENABLE ATTEMPT TO CONCEAL AND CHARACTERIZE AS INSIGNIFICANT THE POSSESSION AND IMPROPER USE OF SECRET DOCUMENTS BELONGING TO A COMPETITOR VW ORIGINALLY HAD SAID MR LOPEZ AND THE EXECUTIVES WHO FOLLOWED HIM TO VW FROM GM DIDN'T TAKE ANY GM DOCUMENTS NOW VW MAINTAINS THAT THE DOCUMENTS WEREN'T STOLEN BUT WERE OBTAINED BY THE EXECUTIVES TO FULFILL THEIR DUTIES WHILE AT GM PROSECUTORS IN DARMSTADT GERMANY WHO ARE INVESTIGATING THE MATTER WOULDN'T COMMENT ON THE LATEST REVELATIONS LEGAL EXPERTS SAID VW IS IN AN INCREASINGLY AWKWARD POSITION THAT THEY WERE DESTROYED DOES NOT RULE OUT THAT THEY WEREN'T EVALUATED BEFORE HAND SAID ONE LEGAL EXPERT OTHERS NOTED SKEPTICALLY THAT VW'S INTERNAL INVESTIGATION WASN'T CONDUCTED BY A THIRD PARTY OPEL SAID THAT BASED ON THE PROSECUTOR'S INVESTIGATION IT IS APPARENT THAT THOUSANDS OF HIGHLY SENSITIVE DATA WERE STOLEN FROM THE COMPANY VW SOURCES SAY THE DOCUMENTS DESTROYED WERE THE PRIVATE BELONGINGS OF THE FORMER GM WORKERS AND CAN'T BE CONSIDERED TO HAVE BEEN IN VW POSSESSION JUST BECAUSE THOSE INDIVIDUALS NOW WORK FOR THE GERMAN CAR GROUP ACCORDING TO VW MR LOPEZ WHO MOVED TO VW FROM GM IN MARCH HAS SENT THE DARMSTADT PROSECUTORS A DETAILED STATEMENT TO CLARIFY THE CIRCUMSTANCES OF HIS MOVE TO VW AS OF FRIDAY AFTERNOON HOWEVER THE STATEMENT HADN'T BEEN RECEIVED THE PROSECUTOR'S OFFICE SAID THE VW BOARD ALSO PRAISED INDICATIONS BY CHAIRMAN FERDINAND PIECH THAT THE COMPANY IS RECOVERING FROM A LOSS OF 16 BILLION MARKS 9346 MILLION IN THE FIRST HALF OF THE YEAR AND IS NOW OPERATING IN THE BLACK FOLLOWING THE FIRST QUARTER'S LOSS OF 125 BILLION MARKS MR PIECH'S AND MR LOPEZ'S COSTCUTTING MEASURES NARROWED SECONDQUARTER LOSSES TO JUST 355 MILLION MARKS 2074 MILLION ACCORDING TO PERSONS CLOSE TO VW THE SUPERVISORY BOARD FRIDAY NIGHT ALSO DISCUSSED AT LENGTH PLANS TO CREATE A NEW MANAGEMENT BOARD POSITION IN CHARGE OF PUBLIC RELATIONS MR PIECH IS FIGHTING SUCH A MOVE FEARING A LOSS OF INFLUENCE HE ISSUED A STATEMENT FRIDAY AFTERNOON SAYING THAT SUCH A POSITION WOULDN'T BE DISCUSSED BY THE SUPERVISORY BOARD BUT THE HEADHUNTING PHASE FOR THE NEW MANAGEMENT POST IS ALREADY UNDERWAY SAID THE INDIVIDUAL CLOSE TO THE SUPERVISORY BOARD INDICATING THAT A DECISION WOULD LIKELY BE MADE AT THE REGULARLY SCHEDULED SEPTEMBER MEETING OF THE SUPERVISORY BOARD 9308090166 930809 LEISURE & ARTS TELEVISION IT'S A CHILD'S WORLD BY DOROTHY RABINOWITZ THE NEW CBS SUMMER SERIES BEGINNING TONIGHT 93010 PM EDT TITLED BIG WAVE DAVE'S IS SET IT SHOULD COME AS NO SURPRISE IN HAWAII IT CONCERNS THREE BUDDIES WHO RESOLVE FOR REASONS THAT CAN ONLY MAKE SENSE TO SITCOM WRITERS TO CHUCK THEIR LIVES IN THE BIG CITY AND RUN A SURF SHOP ON OAHU NOW BIG WAVE DAVE'S THE WRITERS OF WHICH SHOULD BE LASHED TO SURFBOARDS AND FORCED TO REPEAT THAT TITLE ALOUD 50 TIMES IS NOT TERRIBLE NEITHER FROM THE EVIDENCE OF THE FIRST EPISODE IS IT GOOD WHAT IT IS IS AN AMIABLE STANDARD SITCOM THAT SPUTTERS INTO BRIGHTNESS ON OCCASION VERY RARE OCCASION LIKE MOST OF OUR SITCOMS THE BIGGEST WAVE THAT BIG WAVE DAVE'S GENERATES IN A VIEWER IS ONE OF FATIGUE WE CAN INCLUDE IN THAT WAVE ALSO A FAMILIAR SHUDDER OF RECOGNITION OF WHAT TELEVISION HAS NOW COME TO THIS FATIGUE WAVE COMES FAST DESPITE THE PRESENCE OF ADAM ARKIN AN APPEALING AND COMPETENT YOUNG ACTOR OR PERHAPS BECAUSE OF IT ADAM ARKIN IT'S HARD TO FORGET IS THE SON OF THE UNIQUELY SPLENDID ALAN ARKIN WHOSE FILM APPEARANCES ARE NOW AS THEY HAVE ALWAYS BEEN TOO RARE HE ALAN DOES APPEAR IN FACT IN THE NEWLY OPENED AND IDIOTIC SO I MARRIED AN AXE MURDERER AND THAT MAY BE REASON ENOUGH TO ENDURE WATCHING THE FILM FOR ONE REASON AND ANOTHER HOWEVER TONIGHT'S SITCOM PREMIERE SERVES AS A REMINDER OF THE NOW ALMOST COMPLETE CONVERSION OF THE ENTERTAINMENT INDUSTRY TO A BUSINESS FOR AND ABOUT JUVENILES ODDLY OR PERHAPS NOT SO ODDLY TV ENTERTAINMENT TODAY LIBERATED AS NEVER BEFORE AND SATURATED WITH WHAT'S KNOWN AS ADULT FARE HAS NEVER BEEN MORE LACKING IN SOPHISTICATION NEVER HAVE ITS NOTIONS OF COMEDY ITS SCRIPTS BEEN SO UNREMITTINGLY PUERILE AS THEY ARE NOW THE SAME IS TRUE OF HOLLYWOOD FILMS TO A LESSER DEGREE BUT TRUE NONETHELESS THE MOVIE SLEEPLESS IN SEATTLE MAKES ENOUGH REFERENCE TO AN AFFAIR TO REMEMBER THE CLASSIC LUSHLY ROMANTIC VEHICLE FOR CARY GRANT AND DEBORAH KERR TO CREATE A RUN ON THE FILM IN VIDEO STORES IT MAY COME AS QUITE A SHOCK TO THE THIRTYSOMETHING AND UNDER GENERATION TO SEE ALL THOSE GROWNUPS STARRING AS ROMANTIC LEADS IN THIS FILM MAYBE SOME PRODUCTION TEAM IS EVEN NOW THINKING OF REMAKING AN AFFAIR TO REMEMBER MAYBE TOM CRUISE WILL GET TO PLAY THE CARY GRANT PART MAYBE MOLLY RINGWALD COULD BE DEBORAH KERR SUCH A FILM OF COURSE WOULD BE ENOUGH TO INDUCE THOUGHTS OF A VISIT TO DR KEVORKIAN STILL IN THE MOVIE WORLD THE PROBLEM IS NOT THE LACK OF GOOD ACTORS OR STARS THE LIKES OF CLINT EASTWOOD AND SEAN CONNERY STILL THRIVE THE PROBLEM IS THE LACK OF ROLES IN TV ENTERTAINMENT ESPECIALLY IN THE SITCOMS DEDICATION TO THE JUVENILE IS BY NOW SO NEARLY TOTAL THAT MOST COMEDY CHARACTERS INCLUDING THOSE IN SUPPOSEDLY ADULT SHOWS SUCH AS MURPHY BROWN ALL HAVE THE SAME ADOLESCENT TONE THERE HAVE BEEN OF COURSE EXCEPTIONS SUCH AS THE WONDER YEARS WHICH HAD A HEALTHY RUN AND DELIVERED ITS PORTRAIT OF YOUTH WITH ADULT INTELLIGENCE TO WATCH SAY A WEEK'S WORTH OF PRIMETIME SITCOMS IS HOWEVER TO GRASP HOW COMPLETELY TELEVISION WRITING NOW IS STEEPED IN THE HABITS OF MIND THE WIT THE PREOCCUPATIONS OF ADOLESCENCE NOT THE BETTER PART OF THAT STAGE OF LIFE EITHER THOSE WHO ORDAIN AND CREATE WHAT APPEARS AS TELEVISION ENTERTAINMENT ARE OF COURSE NOT ADOLESCENTS BUT MANY OF THEM ARE THE SPAWN OF AN ERA THAT SANCTIFIED THE YOUTH CULTURE WHO BUT THE BRIGHT CONFIDENT AND UNDEREDUCATED GENERATION THAT CAME OUT OF THIS ERA THE LATE '60S AND THE '70S COULD HAVE PRODUCED TELEVISION FARE DEVOID OF ADULTS AND CONCEIVED BY WRITERS LARGELY UNABLE TO GRASP WHAT AN ADULT CHARACTER THINKS AND SOUNDS LIKE TO RECOGNIZE HOW MUCH TELEVISION HAS CHANGED IN THIS REGARD IT IS ONLY NECESSARY TO LOOK IN AT NICK AT NITE A DIVISION OF NICKELODEON UNLIKE NICKELODEON WHICH SPECIALIZES IN CHILDREN'S PROGRAMS NICK AT NITE HAS BEEN MAKING A NAME FOR ITSELF DELIVERING CLASSIC TELEVISION SERIES SUCH AS THE MARY TYLER MOORE SHOW THE DICK VAN DYKE SHOW ALFRED HITCHCOCK PRESENTS AND DRAGNET CARRIED ACROSS THE NATION NICK'S RERUNS HAVE ATTRACTED HUGE NUMBERS OF VIEWERS THE FIRST THING TO NOTICE ABOUT THE NICK REVIVALS IS HOW MUCH MORE SOPHISTICATED THEY ARE THAN THE GENERAL RUN OF TV COMEDIES WRITTEN TODAY ABOVE ALL THEY ARE FOR ALL THEIR ZANINESS ABOUT GROWNUPS LIVING IN A RECOGNIZABLY ADULT WORLD TALKING AND LOOKING LIKE ADULTS CONSIDER THOUGH HOW YOUNG DICK VAN DYKE AND MARY TYLER MOORE MUST HAVE BEEN AT THE TIME THE SHOWS WERE PRODUCED THE TEENAGE CHARACTERS HERE AND ELSEWHERE ON NICK ON THE PATTY DUKE SHOW FOR INSTANCE SEEM FAR MORE CONNECTED TO THE ADULT WORLD THAN MOST ADULT CHARACTERS CONTRIVED BY TV WRITERS TODAY NICK ISN'T THE ONLY NETWORK PROVIDING SUCH COMEDIES IN RERUN NEEDLESS TO SAY MAMA'S FAMILY A DOURLY ADULT CLASSIC IF EVER THERE WAS ONE APPEARS DAILY ON FOX BUT NICK WHICH HAS BEEN AROUND FOR ROUGHLY EIGHT YEARS DELIVERS THE BEST OF THEM IN VOLUME BACK TO BACK AND THIS FALL THE NETWORK WILL ADD THE MATCHLESS OLD THE BOB NEWHART SHOW UNTIL THEN WE CAN CONTENT OURSELVES WITH NICK'S CURRENT LINEUP HEADED UP BY JACK WEBB'S FAMOUSLY MONOTONE DETECTIVE SERIAL DRAGNET ITS DEVOTEES EVIDENTLY APPRECIATE A POLICE SHOW NOT EXCESSIVELY LADEN WITH SHOWY RESEARCH EFFORTS AT VERISIMILITUDE AND UNNECESSARY TECHNICALITIES ON DRAGNET POLICE PATHOLOGISTS ARE INTRODUCED WITH SWEET SIMPLICITY AS OUR SCIENTIFICINVESTIGATION DIVISION ALFRED HITCHCOCK IS NO LESS A FAVORITE AND NO DOUBT THE MOST ADULT PRESENCE OF ALL ON NICK AS HE MURMURS HIS ASIDES ABOUT ADVERTISERS AND PROMISES THAT WHAT FOLLOWS WILL BE AN ALLTOOBRIEF MESSAGE FROM OUR SPONSORS ACCORDING TO NICK AT NITE REPRESENTATIVES THE OLD SHOWS ARE COMMANDING SIGNFICANT ATTENTION FROM COLLEGE STUDENTS LITTLE AS IT IS LET US TREASURE THIS BULLETIN AS A RARE PIECE OF GOOD NEWS FROM THE CULTURE FRONT 9308090165 930809 BUSINESS BRIEF EXMCORP OFFICIALS' INSURERS PAY FDIC TO END CLAIMS AGAINST 20 FAILED BANKS DALLAS INSURERS FOR OFFICERS AND DIRECTORS OF MCORP'S DALLAS BRANCH LAST WEEK PAID REGULATORS 399 MILLION IN EXCHANGE FOR DROPPING ANY POTENTIAL CLAIMS AGAINST THE COMPANY'S 20 FAILED BANKS THE SETTLEMENT AMONG THE LARGEST INVOLVING FORMER OFFICIALS OF A DEFUNCT US BANK WAS REACHED LAST MONTH AFTER MORE THAN A YEAR OF TALKS BETWEEN THE FEDERAL DEPOSIT INSURANCE CORP AND 26 FORMER MBANKDALLAS MANAGERS AND DIRECTORS AIMED AT AVERTING ANY LAWSUIT ACCORDING TO THE 16PAGE AGREEMENT THREE INSURANCE COMPANIES PAID THE SETTLEMENT ON BEHALF OF THE OFFICERS AND DIRECTORS NAMED IN THE SETTLEMENT THE MBANK OFFICIALS INCLUDE FORMER CHAIRMAN GENE H BISHOP AND FORMER VICE CHAIRMAN JAMES B GARDNER AS WELL AS FORMER DALLAS COWBOYS QUARTERBACK ROGER STAUBACH A ONETIME MBANK DIRECTOR ATTORNEYS INVOLVED STRESSED THAT THE AGREEMENT WASN'T AN ADMISSION OF GUILT OR LIABILITY NONE OF THE INDIVIDUALS CONTRIBUTED TO THE INSURANCE COMPANIES' PAYMENT BY CONTRAST WHEN REGULATORS REACHED A 23 MILLION SETTLEMENT WITH OFFICERS AND DIRECTORS OF DALLASBASED FIRST REPUBLICBANK CORP IN JANUARY NEARLY ALL OF THE MONEY WAS PAID BY THE FORMER BANK MANAGERS ATTORNEYS INVOLVED IN THE MBANK SETTLEMENT SAY THE DIFFERENCE STEMS FROM A MORE COMPREHENSIVE MCORP INSURANCE POLICY FOR FORMER BANK EXECUTIVES AND DIRECTORS MR BISHOP IN A PREPARED STATEMENT SAID HE DOESN'T BELIEVE ANY OF THE THRIFT'S OFFICERS AND DIRECTORS DID ANYTHING WRONG AND THAT THEY SIMPLY FELL VICTIM TO BAD ECONOMIC TIMES ALL OFFICERS AND DIRECTORS WERE DILIGENT AND INSIGHTFUL HE SAID AND ALL ARE OF UNQUESTIONED INTEGRITY MIKE MCKOOL JR A DALLAS ATTORNEY REPRESENTING OUTSIDE DIRECTORS NAMED IN THE SETTLEMENT SAID NEGOTIATIONS WITH THE FDIC BEGAN BEFORE THE AGENCY HAD FILED ANY LAWSUIT ACCORDING TO THE AGREEMENT INSURERS CORPORATE OFFICERS AND DIRECTORS ASSURANCE LTD OF BERMUDA PAID 99 MILLION OF THE SETTLEMENT ACE INSURANCE CO OF BERMUDA PAID 10 MILLION AND XL INSURANCE CO OF BARBADOS PAID 20 MILLION THE FDIC SEIZED 20 OF MCORP'S BANKS IN MARCH 1989 AFTER DECLARING THEM INSOLVENT IT WAS AT THE TIME THE THIRDLARGEST BANK FAILURE IN US HISTORY THE 20 BANKS WHICH HAD 154 BILLION IN ASSETS WERE SOLD TO BANC ONE CORP OF COLUMBUS OHIO AND MCORP LATER FILED FOR FEDERAL BANKRUPTCYCOURT PROTECTION